Baird’s Businesses at a Glance

Private Wealth Management

Loyalty That Sets Us Apart and Drives Results

Early in 2025, we surveyed our clients to discover what they valued most in their relationship with Baird. The survey results revealed that client loyalty reached “world-class” levels, reflecting the trust and satisfaction our clients feel when working with advisor teams. But listening to our clients isn’t just the right thing to do – it’s also good business. Our financial results in 2025 are a direct reflection of our commitment to putting clients first, investing in the resources and expertise they value and continually adapting to meet their evolving needs.

“Baird’s future is built on the trust and satisfaction of our clients. Their feedback guides our strategy, our investments in technology and expertise, and ultimately our growth”

- Erik Dahlberg
President, Private Wealth Management

The Power of the Advisor – and the Team Behind Them

Our advisors are at the heart of every client relationship – survey results confirm that satisfaction with the financial advisor is the single strongest driver of client loyalty. But our advisors are never alone – they’re backed by the Wealth Solutions Group, a deep bench of specialists, planners and support teams who help deliver a holistic wealth management experience. Clients benefit from experts across a range of financial disciplines, along with access to market strategy experts – including Strategas, a Baird company – and responsive support staff. This collaborative approach ensures that every client receives personalized guidance, tailored to their unique goals and circumstances.

“Empowering clients starts with understanding what matters most to them. Every conversation is an opportunity to listen, adapt and deliver advice that reflects their goals – not ours. That’s what makes this work meaningful.”

- Ellen Galezewski
Director of Wealth Strategy & Solutions
Private Wealth Management

Listening To – and Acting On – What Matters Most

Survey results also revealed that our clients appreciate having deep support in the areas that matter most to them. We took that feedback to heart, expanding our resources and expertise to help clients navigate complex planning decisions. Whether it’s reviewing tax returns to help minimize a client’s tax burden, partnering with professional estate planners to protect a legacy or providing guidance on Medicare and healthcare expenses well into retirement, our advisors and planning teams are better equipped than ever to deliver the advice our clients value most.

Investing in Planning, Powered by Technology

One example of how we’ve grown from client feedback is our investment in advanced planning technology. Results from a similar survey in 2023 told us that tax planning was the most requested service – and in response, we accelerated the adoption of new tools that allow advisors to deliver more actionable guidance to more clients than ever before. This proved invaluable when last summer’s tax legislation required rapid updates – our planning teams were able to support clients with up-to-date insights and revised strategies the very next business day.

Looking Ahead

The Baird Way is more than a slogan – it’s a commitment to act in our clients’ best interests, to listen and adapt, and to invest in the resources that matter most to them. As we look to the future, we’ll continue to let our clients’ voices guide us, ensuring that our employee-owned structure remains a foundation for exceptional service and lasting relationships.

Survey results are from a Baird client satisfaction survey conducted in 2025 by 8 Acre Perspective, an independent marketing research firm. More than 6,000 clients completed at least some portion of the online survey. Clients were not compensated for participating. The “world-class” designation reflects a Net Promoter Score of 80 or above. Net Promoter® is a registered trademark of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld. Net Promoter Score^SM is a service mark of Bain & Company, Inc., NICE Systems, Inc., and Fred Reichheld.

Asset Management

Baird’s Asset Management businesses marked major milestones in 2025 while continuing to build on a long tradition of investment excellence and growth in assets under management.

In late 2025 it was announced that Mary Ellen Stanek, Founder and Chief Investment Officer Emeritus of Baird Advisors, would be the recipient of a Lifetime Achievement Award from the Museum of American Finance at the museum’s March 2026 gala.

While Baird Advisors’ core leadership team has managed portfolios together for more than 30 years, the team continues to add both seasoned and up-and-coming professionals to complement and augment their expertise. They also emphasize professional growth and development – increasing the number of team members bearing the prestigious CFA designation to 36 in 2025 – and continue to invest in the technology and operations expertise necessary to best serve clients.

“We’re really laser-focused on helping investors sort through volatility and uncertainty, managing risk carefully and identifying the opportunities such conditions often create.”

- Mary Ellen Stanek
Chief Investment Officer Emeritus - Baird Advisors
President of Baird Funds

Baird Equity Asset Management

The combination of historically high valuations and concentration of outperformance within narrow tech-focused areas of the U.S. equity market created headwinds for Baird’s small and mid-cap-focused U.S. Growth team in 2025. Conversely, lower valuations and longer-term investment themes increased the relative attractiveness of international equity markets, creating opportunities for Baird’s International and Global Growth team.

All-in, Baird Equity Asset Management ended the year with $11.4 billion in assets under management.

The individual teams within Baird Equity Asset Management operate with independence and autonomy, but are unified by their long-term perspective, focus on quality and deep experience within their focused areas of the market.

Chautauqua Capital Management manages Baird’s global and international equity portfolios and mutual funds. Against a rapidly changing international trade policy backdrop, the team continued to focus on quality companies with sustainable competitive advantages. Their portfolios prioritized businesses with strong market positions and growth trajectories aligned with secular trends. The team’s conviction in the quality of their holdings and avoidance of sweeping investment changes based on geopolitical factors contributed to nearly 62% growth in assets under management to $2.68 billion by year-end.

Baird’s Specialized Asset Management team works closely with Baird’s Financial Advisors to meet the investment needs of families and individuals and continued to grow relationships within Baird’s Private Wealth Management business. Advisor and client appreciation for the team’s transparent, customizable and tax-efficient solutions helped grow assets under management to more than $7 billion by the end of the year.

“We invest in market leaders with durable advantages, strong financials and steady cash flow and believe our portfolios should withstand external economic shocks.”

- Haicheng Li
Chautauqua Capital Management Managing Partner
Baird Equity Asset Management

• Additional Disclosures

  © 2025 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.

  Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

  As of 12/5/2025, the Baird Aggregate Bond (Institutional Class) received a Gold Morningstar Medalist Rating.^TM
  The Fund’s Investor Share Class received a Gold Morningstar Medalist Rating.^TM

  As of 12/5/2025, the Baird Core Plus Bond (Institutional Class) received a Gold Morningstar Medalist Rating.^TM
  The Fund’s Investor Share Class received a Gold Morningstar Medalist Rating.^TM

  As of 12/5/2025, the Baird Short-Term Bond Fund (Institutional Class) received a Gold Morningstar Medalist Rating.^TM
  The Fund’s Investor Share Class received a Gold Morningstar Medalist Rating.^TM

  As of 12/5/2025, the Baird Ultra Short Bond Fund (Institutional Class) received a Gold Morningstar Medalist Rating.^TMThe Fund’s Investor Share Class received a Gold Morningstar Medalist Rating.^TM

  The Morningstar Medalist Rating^TM is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to morningstar.com/business/insights/research/methodology-documents.

  The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes and/or changes in political and social conditions and (v) should not be considered an offer or solicitation to buy or sell the investment product.

  A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.

  Morningstar’s^TM Thrilling 33 is a curated list of mutual funds that meet a set of criteria designed to identify high-quality, long-term investment options. Some of the attributes a fund must have include a low fee relative to peers, a Morningstar Risk rating that suggests lower risk relative to peers, a Morningstar Medalist Rating of Bronze or higher, manager investment of more than $1 million, returns greater than the fund’s category benchmark for a minimum of five years and an investment minimum of no greater than $50,000.

  The Baird Strategic Municipal Bond Fund (BSNIX) was named by LSEG Lipper as Best Fund Over 3- and 5-Years for the period ending November 30, 2024, among 75 and 73 Short-intermediate Municipal Debt Funds, respectively. The Baird Municipal Bond Fund (BMQIX) was recognized as Best Fund Over 3- and 5-Years among 252, 245 General & Insured Debt Funds, respectively, for the period ending November 30, 2024. The LSEG Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers.

  The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by LSEG Lipper.

  LSEG Lipper Fund Awards, © 2025 LSEG. All rights reserved. Used under license.

  Investors should consider the investment objectives, risks, charges and expense of each fund carefully before investing. This and other information is found in the prospectus and summary prospectus. For a prospectus or summary prospectus, as well as other important information including current performance and complete methodology for the funds’ recognitions cited herein, visit bairdfunds.com. Please read the prospectus or summary prospectus carefully before investing.

Fixed Income Capital Markets

For more than a century, Baird’s Fixed Income Capital Markets team has been serving clients with integrity, collaboration and a steadfast commitment to their financial goals. Our full-service platform brings together dedicated bankers, salespeople, traders, underwriters and analytical professionals who are committed to delivering tailored solutions that set our clients up for success.

Sales & Trading

Our Sales & Trading platform continues to evolve to meet the needs of institutional fixed income clients. Our institutional salespersons, traders, underwriters and analytical professionals across four specialties – corporate credit, government agency, municipals and securitized products – deliver innovative solutions and expertise our clients rely on. By strategically growing our capabilities in the areas our clients are focused on, including adding new talent on our municipal and agency desks, we are strengthening our platform to deliver even greater trading expertise and execution for our clients.

“Living The Baird Way – being transparent, not taking shortcuts, always keeping our clients first – isn’t just a nice thing to do. We believe building trusted relationships with our clients will always be the right way to do business.”

- Pat Lawton
Director
Fixed Income Capital Markets

¹S&P Muni Deal Query as of December 31, 2025. Does not include Private Placements or Notes.
²LSEG as of December 31, 2025. Does not include Private Placements or Notes.

Equity Capital Markets

Throughout 2025, we completed 203 advisory and financing transactions with a combined value of $106 billion, our third-best year ever. Our service and execution are rooted in deep sector knowledge, strengthened by adding key verticals year after year. This industry expertise is complemented by our growing product offerings, which gained momentum and saw increased deal activity in 2025. As we continue to invest in the long-term growth of our platform, we are seeing even deeper collaboration between our teams and, together, building more innovative, integrated strategies to help our clients achieve their goals in dynamic markets.

In parallel with our transaction activity, we continued to invest in data analytics, AI and other tech-enabled solutions that enable us to not just measure and optimize all aspects of what we do but also enhance the expertise and execution we provide to our clients. These initiatives intersect with our continued focus on developing our team. Our goal is to not only attract and retain the best talent in the investment banking industry but also reward and develop them so they can build long, sustainable and satisfying careers at Baird. We continued to build out our professional development and education offerings for bankers of all levels of seniority and rolled out technologies that support collaboration and engagement across our teams.

We closed the year with a robust backlog of assignments. As we look to 2026 and beyond, we are confident in our team, our platform and our drive to deliver for our clients.

Global Equities

Throughout 2025, our Global Equities team delivered the advice, insights and relationships our institutional clients sought to navigate dynamic markets. Our investments in our platform in recent years, including enhancing our equity capital markets and advanced trading capabilities, are bearing fruit and enabling us to deliver additive value to our clients.

Our team of more than 270 colleagues in the U.S. and U.K. delivers renowned research, institutional sales, global equity trading, global corporate access and conferences capabilities to clients around the world. Strong research is the foundation of our platform. Our team includes 90 equity research analysts covering more than 710 stocks, providing broad perspective and supporting our corporate clients’ equity issuance needs. Our macroeconomic research coverage is offered by Strategas, a Baird company, which will celebrate its 20^th anniversary in 2026. Strategas ranks among the top research firms on all of Wall Street, and for the ninth consecutive year stands alone as the top-ranked macro-only firm.¹

Over the past few years, Strategas has expanded its offerings by launching three ETFs, which collectively had $450 million in assets under management at year-end.

We also continued our long history of connecting company management, subject matter experts and investors via industry-focused events. Our Corporate Access and Conferences teams arranged more than 25,000 company–investor connections, including 1x1 meetings at Baird conferences, non-deal roadshows and other events. We hosted conferences focused on government policy, macroeconomic strategy and the consumer, industrial, technology & services and healthcare sectors, including our 55th annual Global Industrial Conference. Each conference continued to draw strong attendance from presenting companies and institutional investors.

¹Extel rankings issued October 28, 2025, based on data through June 2, 2025. Strategas was ranked the #1 Macro-Only Sell-Side firm in Extel’s All-America Research survey. Rankings, ratings or awards may not be representative of any specific client’s experience. Extel official rankings and methodology here: https://www.extelinsights.com/results

Principal Investments

“Our one-fund, transatlantic strategy focuses on investing in founder-led, B2B technology & services businesses – an area we know incredibly well, where our experience and operating resources can help to accelerate revenue growth and create shareholder value”

- Gordon Pan
President
Baird Capital

Investment Highlights

Our team actively pursued new investment opportunities and exits in 2025 despite a challenging market. Throughout the year, we deployed more than $103 million in new and follow-on capital and returned $95 million to our investors. We completed an investment in EvoluteIQ, a native AI platform that can be used to automate end-to-end processes across any industry, and exited three portfolio companies. In addition, we supported the growth of our existing portfolio through four strategic add-on acquisitions, including three for portfolio company Cleanwater1, a leading provider of water quality solutions. Overall, our team reviewed approximately 600 investment opportunities during the course of 2025. We have a strong investment pipeline heading into 2026, driven by our Business Development team and our focus on proactive and thesis-driven deal sourcing.

Helping Our Portfolio Companies Thrive

As investors, we believe we can and should bring more to our portfolio companies than financial capital: We deliberately seek opportunities where we believe we can provide additive resources, relationships and expertise that can accelerate a company’s growth. During 2025, we strengthened this commitment by adding senior talent to our Portfolio Operations team, which works closely with founders and management teams to professionalize their businesses and expand into new markets.

As we look to the future, we are optimistic about the opportunities ahead for our platform. Our investment pipeline remains strong and we look forward to the opportunity to invest in exciting companies and deliver value to our investors.

¹Baird Capital only.