New York Times features Baird Core Plus Bond Fund

In an October 16 article titled "Signs of Strain in the Stock and Bond Love Affair," the New York Times called out the Baird Core Plus Bond Fund (BCOIX/BCOSX) as the type of fund that might mitigate a portfolio's sensitivity to rising rates. 


A well-honed actively managed bond fund might mitigate a portfolio's sensitivity to rising rates.

For example, right now bond index funds that closely mirror the Barclays U.S. Aggregate index are loaded with Treasury and government agency bonds. Those are what you want when markets falter, but they have extremely low yields today and typically are very sensitive to rising rates. By comparison, the Baird Core Plus Bond has the freedom to decide on its bond mix. 

"Trying to hit a lot of singles, and not swing for home runs" as the fund's co-manager, Mary Ellen Stanek, describes the strategy, has delivered index-beating performance since the fund's 2000 inception. The fund also ranks in the top quartile of its peers over the last one-, three-, five- and 10-ear periods. Currently, the fund's Treasury stake is much lower than what is stuffed in its benchmark index, and it owns a lot more American corporate bonds. On average, high-quality corporate bonds currently have yields that are at least one percentage point higher than Treasury bonds. "We think we're in the seventh inning for corporate bonds. The fundamentals look pretty good," says Warren Pierson, also a co-manager.

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Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. This and other information can be found in the prospectus or summary prospectus. A prospectus or summary prospectus may be obtained from your financial advisor and should be read carefully before investing.