The Fund is managed through a duration-neutral, risk-controlled approach with a strong emphasis on the long-term perspective. The investment objective of the Fund is to seek current income consistent with preservation of capital. The Fund’s benchmark is the Bloomberg Short-Term U.S. Government/Corporate Index. The Fund normally invests at least 80% of its net assets in the following types of U.S. dollar-denominated debt securities:
- 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
The Fund invests primarily in investment-grade debt securities, but may invest up to 10% of its net assets in non-investment-grade securities.
The advisor has contractually agreed to waive management fees in an amount equal to an annual rate of 0.15% of the average daily net assets for the Fund until April 30, 2022. The agreement may only be terminated prior to the end of this term by or with the consent of the board of directors of Baird Funds, Inc.