Baird to launch short-term and intermediate-term municipal bond funds

By Toni Weeks

San Luis Obispo, Calif., June 17 – Baird Funds, Inc. announced plans to launch two new municipal funds, the Baird Short-Term Municipal Bond fund and the Baird Core Intermediate Municipal Bond fund.

According to an N-1A filing with the Securities and Exchange Commission, both funds will seek current income that is exempt from federal income tax and is consistent with the preservation of capital. Each fund normally invests at least 80% of its net assets in municipal bonds and debentures, the income from which is exempt from federal income tax, including the federal alternative minimum tax. The funds primarily invest in municipal obligations that are rated investment grade at the time of purchase.

The difference between the funds is their maturity. For the short-term fund, the dollar-weighted average effective maturity is expected to be less than three years. For the intermediate-term fund, maturity will be between three and 10 years.

The portfolio managers are Duane A. McAllister, Erik R. Schleicher and Joseph J. Czechowicz.

Both funds will offer institutional class and investor class shares. The ticker symbols have not been yet.

For both funds, there will be no shareholder fees. Management fees will run 0.25%. Total annual fund operating expenses are estimated at 0.55% for investor class shares and 0.3% for institutional class shares.

Milwaukee-based Robert W. Baird & Co. Inc. will be the funds’ investment adviser.

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