MILWAUKEE--(BUSINESS WIRE)--Baird Ultra Short Bond Fund (NASDAQ: BUBIX) achieved its three-year milestone December 31, 2016. The fund posted a return of 1.56% in 2016 and has averaged 1.02% per year since its inception on December 31, 2013.
Baird Ultra Short Bond Fund primarily invests in very short maturity investment grade debt obligations and generally maintains an average duration above 3 months and under 1 year.
“Baird Ultra Short holds a unique place in our bond fund line up for very cautious investors or those most concerned about rising interest rates,” said Mary Ellen Stanek, Managing Director and Chief Investment Officer. The Baird team also manages Baird Short Term Bond Fund, Baird Intermediate Bond Fund, Baird Aggregate Bond Fund, Baird Core Plus Bond Fund and on the municipal side Baird Short-term Municipal Bond Fund, Baird Core Intermediate Municipal Bond Fund and Baird Quality Intermediate Municipal Bond Fund.
“Risk control is the foundation of all of our funds and this fund’s duration is set substantially equal to the duration of the Bloomberg Barclays US Short-Term Government/Corporate Index which helps to ensure a high degree of predictability relative to benchmark.”
The Fund normally invests at least 80% of its net assets in the following types of U.S. dollar-denominated investment grade debt obligations:
- U.S. government and other public-sector entities
- Asset-backed and mortgage-backed obligations of U.S. and foreign issuers
- Corporate debt of U.S. and foreign issuers
- Money market instruments
“Changes to money market rules that went into effect late in 2016 and restricted those funds’ holdings to only the highest grade government securities created opportunities for this fund in more ways than one,” said Stanek. “We were able to invest strategically in bonds that no longer qualified for money market funds. We also benefited as some investors considered alternatives given the more restrictive investments allowed in money market funds going forward.”
Baird is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. Established in 1919, Baird has more than 3,300 associates serving the needs of individual, corporate, institutional and municipal clients. Baird has more than $151 billion in client assets. Committed to being a great place to work, Baird ranked No. 6 on FORTUNE’s 100 Best Companies to Work For in 2016 – its 13th consecutive year on the list. Baird’s principal operating subsidiaries are Robert W. Baird & Co. in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird’s investment banking and private equity operations. For more information, please visit Baird’s Web site at www.rwbaird.com.
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 Funds directly at 800-444-9102 or contact your Baird Financial Advisor. Please read the prospectus or summary prospectus carefully before investing.
Data as of 12/31/16
|Fund Name||(%)||(%)||Inception (%)||Gross/Net||SEC Yld.|
|Ultra Short Bond Fund||1.56||1.56||1.02||0.30/0.15||1.15|
|Bloomberg Barclays Short-Term Government/Corporate Index||0.80||0.80||0.41||-||-|
In a rising interest rate environment, the value of fixed-income securities generally decline and conversely, in a falling interest rate environment, the value of fixed income securities generally increase. 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. Indexes are unmanaged and direct investment is not possible.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.