In a July 12 U.S. News & World Report article Duane McAllister, Senior Portfolio Manager with Baird Advisors, discusses when municipal bonds outside your state make sense. McAllister explains:

“Having a mix of muni bond exposure helps protect investors from regional economic swings. If an investor lives in the New England area and there’s a recession there, Texas may be doing well.”

Read the full article here to learn more.

Investors should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. This and other information is found in the prospectus and summary prospectus. For a prospectus or summary prospectus, contact Baird directly at 866-442-2473 or contact your Financial Advisor.

Some of the potential risks associated with fixed income investments include call risk, reinvestment risk, default risk and inflation risk. Additionally, it is important that an investor is familiar with the inverse relationship between a bond’s price and its yield. Bond prices will fall as interest rates rise and vice versa. High yield securities may be subject to heightened market, interest rate or credit risk and should not be purchased solely because of the stated yield. Ratings are measured on a scale that ranges from AAA or Aaa (highest) to D or C (lowest). Investment grade investments are those rated from highest down to BBB- or Baa3.  Past performance does not guarantee future results. Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates.