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TABLE OF CONTENTS
BAIRD SMALL/MID CAP GROWTH FUND
SMALL/MID CAP GROWTH COMPOSITE
BACK COVER




Summary Section

Baird MidCap Fund

Investment Objective
The investment objective of the Baird MidCap Fund (the “Fund”) is to provide long-term growth of capital.

Fees and Expenses of the Fund
The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.

Shareholder Fees
(fees paid directly from your investment)
None

Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
Investor
Class Shares
Institutional
Class Shares
Management Fees 0.75% 0.75%
Distribution and Service (12b-1) Fees
0.25% None
Other Expenses 0.07% 0.07%
Total Annual Fund Operating Expenses 1.07% 0.82%

Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:



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1 Year 3 Years 5 Years 10 Years
Investor Class Shares $109 $340 $590 $1,306
Institutional Class Shares $84 $262 $455 $1,014

Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 47% of the average value of its portfolio.

Principal Investment Strategies
The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in the equity securities of U.S. and foreign mid-capitalization companies, principally common stocks, preferred stocks, securities convertible into common stocks and American Depositary Receipts (“ADRs”) that are traded on major U.S. exchanges. Although the Fund principally invests in U.S. companies, the Fund may invest up to 15% of its total assets in equity securities (consisting of common stocks, ordinary shares and ADRs) of foreign companies. The Fund defines mid-capitalization companies as those companies with a market capitalization within the range of companies in the Russell Midcap® Growth Index at the time of investment.

When analyzing equity securities to be purchased by the Fund, Robert W. Baird & Co. Incorporated (the “Advisor”) emphasizes a company’s growth prospects. The Fund’s investments are selected using a variety of both quantitative techniques and fundamental research in seeking to maximize the Fund’s expected return while controlling risk.

The Fund seeks a portfolio comprised of companies which reflect “PRIME” growth factors. These factors are analyzed as part of the Advisor’s investment process and are represented in the following ways:

Durable Profitability. Companies with attractive margins and favorable margin trends can drive superior earnings growth.

Sustainable Revenue Growth. Solid barriers to entry, favorable pricing and demonstrated product/service track record can aid top-line prospects.

Favorable Industry dynamics.

Management strength and integrity is a critical element of a high quality company. Growth, profitability and shareholder returns provide insight into management effectiveness. The Advisor seeks companies with management that position their company’s balance sheet to be a source of strength.
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Understanding market Expectations of a company is important in assessing risk/return opportunities.

The Advisor believes an analysis of these PRIME factors yields insights to the competitive strength of a business model.

The Advisor applies the following strategies when purchasing securities for the Fund’s portfolio:

Intentionally avoiding short-term trading strategies and rapid shifts in industry positions.

Setting sector limits at the greater of 30% of the Fund’s total assets or double the weighting of the Russell Midcap® Growth Index in any one sector, as defined by such index.

Typically holding the securities of fewer than 60 companies with exposure to at least 20 industries.

Seeking securities whose growth prospects, in the Advisor’s opinion, are not reflected in their current stock prices.

Limiting the size of any one new position. No security will represent more than 5% of the Fund’s total assets at the time of purchase.

•    Leveraging key tools, such as the Advisor’s proprietary tier-board, which provides a visual representation of portfolio positions and enables discussion on relative weights of underlying positions.

The Advisor may sell a security due to achievement of valuation targets, significant change in the initial investment premise or fundamental deterioration.

Principal Risks
Please be aware that you may lose money by investing in the Fund. The following is a summary description of certain risks of investing in the Fund.

Stock Market Risks
Stock prices vary and may fall, thus reducing the value of the Fund’s investments. Certain stocks selected for the Fund’s portfolio may decline in value more than the overall stock market. The U.S. and international markets have recently experienced extreme price volatility and reduced liquidity. Continuing market problems may have adverse effects on the Fund.

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Growth-Style Investing Risks
Because the Fund focuses on growth-style stocks, its performance may at times be better or worse than the performance of funds that focus on other types of stocks or that have a different investment style. Growth stocks are often characterized by high price-to-earnings ratios, which may be more volatile than stocks with lower price-to-earnings ratios.

Management Risks
The Advisor’s judgments about the attractiveness, value and potential appreciation of particular companies’ stocks may prove to be incorrect. Such errors could result in a negative return to the Fund and a loss to you.

Equity Securities Risks
Equity securities may experience sudden, unpredictable drops in value or long periods of decline in value. This change may occur because of factors that affect securities markets generally or factors affecting specific industries, sectors or companies in which the Fund invests.

Common Stock Risks
Common stocks are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. Holders of common stocks are generally subject to greater risk than holders of preferred stocks and debt obligations of the same issuer because common stockholders generally have inferior rights to receive payments from issuers in comparison with the rights of preferred stockholders, bondholders and other creditors.

Mid-Capitalization Risks
Mid-capitalization stocks are often more volatile and less liquid than investments in larger companies. The frequency and volume of trading in securities of mid-size companies may be substantially less than is typical of larger companies. Therefore, the securities of mid-size companies may be subject to greater and more abrupt price fluctuations. In addition, mid-size companies may lack the management experience, financial resources and product diversification of larger companies, making them more susceptible to market pressures and business failure.

Foreign Securities Risks
Securities of foreign issuers and ADRs are subject to certain inherent risks, such as political or economic instability of the country of issue and government policies, tax rates, withholding of foreign taxes, prevailing interest rates and credit conditions that may differ from those affecting domestic corporations. Securities of foreign issuers and ADRs may also be subject to currency fluctuations and controls and greater fluctuation in price than the securities of domestic corporations. Foreign companies generally are subject to different auditing and financial reporting standards than those applicable to domestic companies.

The United Kingdom (UK) withdrew from the European Union (EU) on January 31, 2020 following a June 2016 referendum referred to as “Brexit.” Although the UK and
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EU agreed to a trade deal in December 2020, certain post-EU arrangements, such as those relating to the offering of cross-border financial services and sharing of cross-border data, have yet to be reached and the EU’s willingness to grant equivalency to the UK remains uncertain. There is significant market uncertainty regarding Brexit’s ramifications, and the range of possible political, regulatory, economic and market outcomes is difficult to predict. The uncertainty surrounding the UK’s economy, and its legal, political, and economic relationship with the remaining member states of the EU, may cause considerable disruption in securities markets, including decreased liquidity and increased volatility, as well as currency fluctuations in the British pound’s exchange rate against the U.S. dollar.

Recent Market Events
U.S. and international markets have experienced significant periods of volatility in recent months and years due to a number of economic, political, social and global macro factors including the impact of the coronavirus (COVID-19) global pandemic, which has resulted in a global health crisis, business interruptions, growth concerns in the U.S. and overseas, layoffs, rising unemployment claims, changed travel and social behaviors, reduced consumer spending, and fiscal, monetary and other government policy responses. The impact of the COVID-19 pandemic may last for an extended period of time.

Performance
The performance information provides some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for one, five and ten years and since inception period compare with those of a broad measure of market performance. Past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available on the Fund’s website at www.bairdfunds.com or by calling the Fund toll-free at 1-866-442-2473.

Calendar Year Returns for Institutional Class Shares
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Best quarter: 2nd quarter 2020 29.44  %
Worst quarter: 1st quarter 2020 -19.30  %
Average Annual Total Returns as of December 31, 2020
1 Year 5 Years 10 Years
Since Inception
(12/29/00)
Institutional Class
Return Before Taxes 34.81% 19.31% 14.81% 9.41%
Return After Taxes on Distributions 31.76% 17.88% 13.91% 8.63%
Return After Taxes on Distributions and Sale of Fund Shares 22.29% 15.42% 12.28% 7.85%
Investor Class
Return Before Taxes 34.32% 18.98% 14.52% 9.14%
Russell MidCap® Growth Index
(reflects no deduction for fees, expenses or taxes)
35.59% 18.66% 15.04% 8.91%

After‑tax returns are shown only for Institutional Class shares, and the after‑tax returns for Investor Class shares will vary. After‑tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after‑tax returns depend on your tax situation and may differ from those shown. After‑tax returns are not relevant if you hold your shares through a tax‑deferred account, such as a 401(k) plan or an individual retirement account.

Investment Advisor
Robert W. Baird & Co. Incorporated is the Fund’s investment advisor.

Portfolio Managers

Name
Portfolio
Manager of
the Fund
Since
Title
Charles F. Severson, CFA 2000 Senior Portfolio Manager for Baird Equity Asset Management and Managing Director of the Advisor
Kenneth M. Hemauer, CFA 2010 Senior Portfolio Manager for Baird Equity Asset Management and Managing Director of the Advisor

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For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to “Purchase and Sale of Fund Shares, Taxes and Financial Intermediary Compensation” on page 44.
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Baird Small/Mid Cap Growth Fund

Investment Objective
The investment objective of the Baird Small/Mid Cap Growth Fund (the “Fund”) is to provide long-term growth of capital.

Fees and Expenses of the Fund
The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.

Shareholder Fees
(fees paid directly from your investment)
None

Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
Investor
Class Shares
Institutional
Class Shares
Management Fees 0.75% 0.75%
Distribution and Service (12b-1) Fees
0.25% None
Other Expenses 0.68% 0.68%
Total Annual Fund Operating Expenses 1.68% 1.43%
Less: Fee Waiver/Expense Reimbursement(1)
-0.58% -0.58%
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement 1.10% 0.85%
(1)Robert W. Baird & Co. Incorporated (the “Advisor”) has contractually agreed to waive management fees and/or reimburse other expenses in order to limit the Fund’s total annual fund operating expenses to 1.10% of average daily net assets for the Investor Class shares and 0.85% of average daily net assets for the Institutional Class shares. The Advisor’s expense reimbursement agreement includes fees and expenses incurred by the Fund in connection with the Fund’s investments in other investment companies (to the extent, in the aggregate, such expenses exceed 0.0049% of the Fund’s net assets) and interest expense, but excludes taxes, brokerage commissions and extraordinary expenses. If such excluded expenses were incurred, Fund expenses would be higher. The Advisor is entitled to recoup the fees waived and/or expenses reimbursed within a three-year period from the time the expenses were incurred, provided that the aggregate amount actually paid by the Fund toward the operating expenses in any month (taking into account the recoupment) will not cause the Fund to exceed the lesser of: (1) the expense cap in place at the time of the fee waiver and/or expense reimbursement; or (2) the expense cap in place at the time of the recoupment. The agreement will continue in effect at least through April 30, 2022 and may only be terminated prior to the end of this term by or with the consent of the Board of Directors.

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Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Please note that the one-year numbers below are based on the Fund’s net expenses resulting from the fee waiver/expense reimbursement agreement described above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 Year 3 Years 5 Years 10 Years
Investor Class Shares $112 $473 $858 $1,939
Institutional Class Shares $87 $395 $726 $1,663

Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 65% of the average value of its portfolio.

Principal Investment Strategies
The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in the equity securities of U.S. and foreign small- and mid-capitalization companies, principally common stocks and American Depositary Receipts (“ADRs”) that are traded on major U.S. exchanges. Although the Fund principally invests in U.S. companies, the Fund may invest up to 15% of its total assets in equity securities (consisting of common stocks, ordinary shares and ADRs) of foreign companies. The Fund defines small- and mid-capitalization companies as those companies with a market capitalization within the range of companies in the Russell 2500® Growth Index at the time of investment.

When analyzing equity securities to be purchased by the Fund, the Advisor emphasizes a company’s growth prospects. The Fund’s investments are selected using a variety of both quantitative techniques and fundamental research in seeking to maximize the Fund’s expected return while controlling risk.

The Fund seeks a portfolio comprised of companies which reflect “PRIME” growth factors. These factors are analyzed as part of the Advisor’s investment process and are represented in the following ways:

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Durable Profitability. Companies with attractive margins and favorable margin trends can drive superior earnings growth.

Sustainable Revenue Growth. Solid barriers to entry, favorable pricing and demonstrated product/service track records can aid top-line prospects.

Favorable Industry dynamics.

Management strength and integrity is a critical element of a high quality company. Growth, profitability and shareholder returns provide insight into management effectiveness. The Advisor seeks companies with management that position their company’s balance sheet to be a source of strength.

Understanding market Expectations of a company is important in assessing risk/return opportunities.

The Advisor believes an analysis of these PRIME factors yields insights into the competitive strength of a business model.

The Advisor applies the following strategies when purchasing securities for the Fund’s portfolio:

Typically holding the securities of fewer than 70 companies with exposure to approximately 20 industries.

Seeking securities whose growth prospects, in the Advisor’s opinion, are not reflected in their current stock prices.

Limiting the size of any one new position. No security will represent more than 5% of the Fund’s total assets at the time of purchase.

The Advisor may sell a security when the price meets or exceeds the Advisor’s targeted valuation or price range for the security, when a significant change occurs that adversely affects the Advisor’s premise or reasons for investing in the security or when the company experiences a fundamental deterioration in its business, financial condition or results, or growth prospects.

Principal Risks
Please be aware that you may lose money by investing in the Fund. The following is a summary description of certain risks of investing in the Fund.

Stock Market Risks
Stock prices vary and may fall, thus reducing the value of the Fund’s investments. Certain stocks selected for the Fund’s portfolio may decline in value more than the overall stock market. The U.S. and international markets have recently experienced
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extreme price volatility and reduced liquidity. Continuing market problems may have adverse effects on the Fund.

Growth-Style Investing Risks
Because the Fund focuses on growth-style stocks, its performance may at times be better or worse than the performance of funds that focus on other types of stocks or that have a different investment style. Growth stocks are often characterized by high price-to-earnings ratios, which may be more volatile than stocks with lower price-to-earnings ratios.

Management Risks
The Advisor’s judgments about the attractiveness, value and potential appreciation of particular companies’ stocks may prove to be incorrect. Such errors could result in a negative return to the Fund and a loss to you.

Equity Securities Risks
Equity securities may experience sudden, unpredictable drops in value or long periods of decline in value. This change may occur because of factors that affect securities markets generally or factors affecting specific industries, sectors or companies in which the Fund invests.

Common Stock Risks
Common stocks are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. Holders of common stocks are generally subject to greater risk than holders of preferred stocks and debt obligations of the same issuer because common stockholders generally have inferior rights to receive payments from issuers in comparison with the rights of preferred stockholders, bondholders and other creditors.

Small- and Mid-Capitalization Risks
Small- and mid-capitalization stocks are often more volatile and less liquid than investments in larger companies. The frequency and volume of trading in securities of small- and mid-size companies may be substantially less than is typical of larger companies. Therefore, the securities of small- and mid-size companies may be subject to greater and more abrupt price fluctuations. In addition, small- and mid-size companies may lack the management experience, financial resources and product diversification of larger companies, making them more susceptible to market pressures and business failure. Small- and mid-size companies in which the Fund may invest may be in the early stages of development and may not yet be profitable. These risks may be more pronounced for small-capitalization companies than for mid-capitalization companies.

Small Fund Risk
There can be no assurance that the Fund will grow to or maintain an economically viable size.

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Foreign Securities Risks
Securities of foreign issuers and ADRs are subject to certain inherent risks, such as political or economic instability of the country of issue and government policies, tax rates, withholding of foreign taxes, prevailing interest rates and credit conditions that may differ from those affecting domestic corporations. Securities of foreign issuers and ADRs may also be subject to currency fluctuations and controls and greater fluctuation in price than the securities of domestic corporations. Foreign companies generally are subject to different auditing and financial reporting standards than those applicable to domestic companies.

The United Kingdom (UK) withdrew from the European Union (EU) on January 31, 2020 following a June 2016 referendum referred to as “Brexit.” Although the UK and EU agreed to a trade deal in December 2020, certain post-EU arrangements, such as those relating to the offering of cross-border financial services and sharing of cross-border data, have yet to be reached and the EU’s willingness to grant equivalency to the UK remains uncertain. There is significant market uncertainty regarding Brexit’s ramifications, and the range of possible political, regulatory, economic and market outcomes is difficult to predict. The uncertainty surrounding the UK’s economy, and its legal, political, and economic relationship with the remaining member states of the EU, may cause considerable disruption in securities markets, including decreased liquidity and increased volatility, as well as currency fluctuations in the British pound’s exchange rate against the U.S. dollar.

Recent Market Events
U.S. and international markets have experienced significant periods of volatility in recent months and years due to a number of economic, political, social and global macro factors including the impact of the coronavirus (COVID-19) global pandemic, which has resulted in a global health crisis, business interruptions, growth concerns in the U.S. and overseas, layoffs, rising unemployment claims, changed travel and social behaviors, reduced consumer spending, and fiscal, monetary and other government policy responses. The impact of the COVID-19 pandemic may last for an extended period of time.

Performance
The performance information provides some indication of the risks of investing in the Fund by showing changes in the Fund’s performance for the past two calendar years and by showing how the Fund’s average annual returns for one year and since inception period compare with those of a broad measure of market performance. Past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available on the Fund’s website at www.bairdfunds.com or by calling the Fund toll-free at 1-866-442-2473.

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Calendar Year Returns for Institutional Class Shares
chart-ae1424dc9eb84332ac51.jpg
Best quarter: 2nd quarter 2020 33.43  %
Worst quarter: 1st quarter 2020 -18.52  %
Average Annual Total Returns as of December 31, 2020
1 Year
Since Inception
(10/31/18)
Institutional Class
Return Before Taxes
44.57% 30.23%
Return After Taxes on Distributions
43.73% 29.88%
Return After Taxes on Distributions and Sale of Fund Shares
26.65% 23.72%
Investor Class
Return Before Taxes
43.89% 29.75%
Russell 2500® Growth Index
(reflects no deduction for fees, expenses or taxes)
40.47% 27.48%

After‑tax returns are shown only for Institutional Class shares, and the after‑tax returns for Investor Class shares will vary. After‑tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after‑tax returns depend on your tax situation and may differ from those shown. After‑tax returns are not relevant if you hold your shares through a tax‑deferred account, such as a 401(k) plan or an individual retirement account.

Investment Advisor
Robert W. Baird & Co. Incorporated is the Fund’s investment advisor.

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Portfolio Manager
Name
Portfolio
Manager
of the Fund
Since
Title
Jonathan Good 2018 Portfolio Manager for Baird Equity Asset Management and Director of the Advisor

For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to “Purchase and Sale of Fund Shares, Taxes and Financial Intermediary Compensation” on page 44.
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Baird Small/Mid Cap Value Fund

Investment Objective
The investment objective of the Baird Small/Mid Cap Value Fund (the “Fund”) is to provide long-term capital appreciation.

Fees and Expenses of the Fund
The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.

Shareholder Fees
(fees paid directly from your investment)
None

Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
Investor
Class Shares
Institutional
Class Shares
Management Fees 0.75% 0.75%
Distribution and Service (12b-1) Fees
0.25% None
Other Expenses 0.90% 0.90%
Total Annual Fund Operating Expenses 1.90% 1.65%
Less: Fee Waiver/Expense Reimbursement(1)
-0.80% -0.80%
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement 1.10% 0.85%
(1)Robert W. Baird & Co. Incorporated (the “Advisor”) has contractually agreed to waive management fees and/or reimburse other expenses in order to limit the Fund’s total annual fund operating expenses to 1.10% of average daily net assets for the Investor Class shares and 0.85% of average daily net assets for the Institutional Class shares. The Advisor’s expense reimbursement agreement includes the fees and expenses incurred by the Fund in connection with the Fund’s investments in other investment companies (to the extent, in the aggregate, such expenses exceed 0.0049% of the Fund’s net assets) and interest expense, but excludes taxes, brokerage commissions and extraordinary expenses. If such excluded expenses were incurred, Fund expenses would be higher. The Advisor is entitled to recoup the fees waived and/or expenses reimbursed within a three-year period from the time the expenses were incurred, provided that the aggregate amount actually paid by the Fund toward the operating expenses in any month (taking into account the recoupment) will not cause the Fund to exceed the lesser of: (1) the expense cap in place at the time of the fee waiver and/or expense reimbursement; or (2) the expense cap in place at the time of the recoupment. The agreement will continue in effect at least through April 30, 2022 and may only be terminated prior to the end of this term by or with the consent of the Board of Directors.

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Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Please note that the one-year numbers below are based on the Fund’s net expenses resulting from the expense reimbursement agreement described above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 Year 3 Years 5 Years 10 Years
Investor Class Shares $112 $519 $952 $2,157
Institutional Class Shares $87 $442 $822 $1,887

Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 84% of the average value of its portfolio.

Principal Investment Strategies
The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in a diversified portfolio of common stocks of companies with small-to-medium market capitalizations. The Advisor defines such companies as those with a maximum market capitalization of $17 billion at the time of investment. Although the Fund invests principally in U.S. companies, the Fund may invest up to 15% of its total assets in equity securities (consisting of common stocks, ordinary shares and American Depositary Receipts (“ADRs”)) of foreign companies that are traded on U.S. exchanges. The Advisor seeks to identify industries and business models that it believes are priced at a discount to their true value because they are currently out of favor with the market or have earnings or profit potential that may be underestimated by Wall Street analysts. The Advisor seeks to purchase securities of small-to-medium capitalization companies believed to have favorable valuation characteristics and opportunities for increased growth. The Advisor primarily considers the following factors:

Valuation – Low price/earnings, price/book and price/cash flow ratios. These characteristics are evaluated based upon a proprietary analysis of forecasted levels of profitability.

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Balance Sheet Strength – Above average projected net margins, returns on equity, returns on assets, free cash flow generation, and revenue and earnings growth rates; trends in balance sheet items, including inventories and accounts receivable and payable, are also scrutinized.

Product Offering/Market Position – The company offers a valuable product or service and has a good market position within a viable industry.

Accounting Policies and Management – The company possesses sound financial and accounting policies and has a high quality management team with a track record of success.

The Advisor also considers environmental, social and governance (ESG) factors in selecting investments for the Fund. As a long-term, buy and hold investor, the Advisor includes ESG considerations as part of its overall investment decision-making. The Advisor believes ESG factors vary across companies, industries, and sectors and therefore does not apply exclusionary ESG screens in selecting investments for the Fund.

The Advisor will typically sell a security held by the Fund when the investment thesis changes, the company’s fundamentals deteriorate, the Advisor identifies portfolio structure or risk management needs and/or the security’s valuation relative to its peer group is no longer attractive.

Principal Risks
Please be aware that you may lose money by investing in the Fund. The following is a summary description of certain risks of investing in the Fund.

Stock Market Risks
Stock prices vary and may fall, thus reducing the value of the Fund’s investments. Certain stocks selected for the Fund’s portfolio may decline in value more than the overall stock market. The U.S. and international markets have recently experienced extreme price volatility and reduced liquidity. Continuing market problems may have adverse effects on the Fund.

Value-Style Investing Risks
Because the Fund focuses on value-style stocks, its performance may at times be worse than the performance of funds that focus on other types of stocks or that have a different investment style. Value-style investing may go out of favor with investors, negatively impacting the Fund’s growth and performance. Value stocks may also fail to appreciate as much as anticipated, and their intrinsic value may not be recognized by the broader market.

17


Management Risks
The Advisor’s judgments about the attractiveness, value and potential appreciation of particular companies’ stocks may prove to be incorrect. Such errors could result in a negative return to the Fund and a loss to you.

Equity Securities Risks
Equity securities may experience sudden, unpredictable drops in value or long periods of decline in value. This change may occur because of factors that affect securities markets generally or factors affecting specific industries, sectors or companies in which the Fund invests.

Common Stock Risks
Common stocks are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. Holders of common stocks are generally subject to greater risk than holders of preferred stocks and debt obligations of the same issuer because common stockholders generally have inferior rights to receive payments from issuers in comparison with the rights of preferred stockholders, bondholders and other creditors.

Small-to-Medium Market Capitalization Risks
Stocks of companies with small and medium market capitalizations involve a higher degree of risk than investments in the broad-based equities market. Small- to mid-capitalization stocks are often more volatile and less liquid than investments in larger companies, and are more likely to be adversely affected by poor economic or market conditions. In addition, small- to mid-capitalization companies may lack the management experience, financial resources and product diversification of larger companies, making them more susceptible to market pressures and business failure.

Financial Sector Risks
The Fund may invest a relatively large percentage of its assets in the financial sector given its weighting in the Fund’s benchmark and, therefore, the Fund’s performance may be adversely affected by volatility in financial and credit markets. Financial services companies (e.g., banks and insurance companies) are subject to extensive government regulation, interest rate risk, credit losses and price competition, among other factors.

Small Fund Risk
There can be no assurance that the Fund will grow to or maintain an economically viable size.
ESG Considerations Risk
Consideration of ESG factors in the investment process may cause the Advisor to forgo opportunities to invest in certain companies or to gain exposure to certain industries or regions and, therefore, carries the risk that, under certain market conditions, the Fund may underperform funds that do not consider such factors. There are not universally accepted ESG factors and the Advisor will consider them in its discretion.

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Foreign Securities Risks
Securities of foreign issuers and ADRs are subject to certain inherent risks, such as political or economic instability of the country of issue and government policies, tax rates, withholding of foreign taxes, prevailing interest rates and credit conditions that may differ from those affecting domestic corporations. Securities of foreign issuers and ADRs may also be subject to currency fluctuations and controls and greater fluctuation in price than the securities of domestic corporations. Foreign companies generally are subject to different auditing and financial reporting standards than those applicable to domestic companies.

The United Kingdom (UK) withdrew from the European Union (EU) on January 31, 2020 following a June 2016 referendum referred to as “Brexit.” Although the UK and EU agreed to a trade deal in December 2020, certain post-EU arrangements, such as those relating to the offering of cross-border financial services and sharing of cross-border data, have yet to be reached and the EU’s willingness to grant equivalency to the UK remains uncertain. There is significant market uncertainty regarding Brexit’s ramifications, and the range of possible political, regulatory, economic and market outcomes is difficult to predict. The uncertainty surrounding the UK’s economy, and its legal, political, and economic relationship with the remaining member states of the EU, may cause considerable disruption in securities markets, including decreased liquidity and increased volatility, as well as currency fluctuations in the British pound’s exchange rate against the U.S. dollar.

Recent Market Events
U.S. and international markets have experienced significant periods of volatility in recent months and years due to a number of economic, political, social and global macro factors including the impact of the coronavirus (COVID-19) global pandemic, which has resulted in a global health crisis, business interruptions, growth concerns in the U.S. and overseas, layoffs, rising unemployment claims, changed travel and social behaviors, reduced consumer spending, and fiscal, monetary and other government policy responses. The impact of the COVID-19 pandemic may last for an extended period of time.

Performance
The performance information provides some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for one and five years and since inception period compare with those of a broad measure of market performance. Past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available on the Fund’s website at www.bairdfunds.com or by calling the Fund toll-free at 1-866-442-2473.

19


Calendar Year Returns for Institutional Class Shares
chart-c3e18a46bff24feeae21.jpg
Best quarter: 4th quarter 2020 24.29  %
Worst quarter: 1st quarter 2020 -28.00  %
Average Annual Total Returns as of December 31, 2020
1 Year 5 Years
Since Inception
(11/30/15)
Institutional Class
Return Before Taxes 0.48% 5.94% 4.85%
Return After Taxes on Distributions 0.31% 5.77% 4.68%
Return After Taxes on Distributions and Sale of Fund Shares 0.41% 4.63% 3.77%
Investor Class
Return Before Taxes 0.15% 5.64% 4.56%
Russell 2500® Value Index
(reflects no deduction for fees, expenses or taxes)
4.88% 9.43% 8.26%

After‑tax returns are shown only for Institutional Class shares, and the after‑tax returns for Investor Class shares will vary. After‑tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after‑tax returns depend on your tax situation and may differ from those shown. After‑tax returns are not relevant if you hold your shares through a tax‑deferred account, such as a 401(k) plan or an individual retirement account.

The Return After Taxes on Distributions and Sale of Fund Shares may be higher than other return figures when a capital loss occurs upon the redemption of Fund shares and provides an assumed tax benefit that increases the after‑tax return.

20


Investment Advisor
Robert W. Baird & Co. Incorporated is the Fund’s investment advisor.

Portfolio Manager
Name
Portfolio
Manager
of the Fund
Since
Title
Michelle E. Stevens, CFA 2015 Senior Portfolio Manager for Baird Equity Asset Management and Managing Director of the Advisor

For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to “Purchase and Sale of Fund Shares, Taxes and Financial Intermediary Compensation” on page 44.
21


Baird SmallCap Value Fund

Investment Objective
The investment objective of the Baird SmallCap Value Fund (the “Fund”) is to provide long-term capital appreciation.

Fees and Expenses of the Fund
The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.


Shareholder Fees
(fees paid directly from your investment)
None

Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
Investor
Class Shares
Institutional
Class Shares
Management Fees 0.85% 0.85%
Distribution and Service (12b-1) Fees
0.25% None
Other Expenses 0.79% 0.79%
Total Annual Fund Operating Expenses 1.89% 1.64%
Less: Fee Waiver/Expense Reimbursement(1)
-0.69% -0.69%
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement 1.20% 0.95%
(1)Robert W. Baird & Co. Incorporated (the “Advisor”) has contractually agreed to waive management fees and/or reimburse other expenses in order to limit the Fund’s total annual fund operating expenses to 1.20% of average daily net assets for the Investor Class shares and 0.95% of average daily net assets for the Institutional Class shares. The Advisor’s expense reimbursement agreement includes the fees and expenses incurred by the Fund in connection with the Fund’s investments in other investment companies (to the extent, in the aggregate, such expenses exceed 0.0049% of the Fund’s net assets) and interest expense, but excludes taxes, brokerage commissions and extraordinary expenses. If such excluded expenses were incurred, Fund expenses would be higher. The Advisor is entitled to recoup the fees waived and/or expenses reimbursed within a three-year period from the time the expenses were incurred provided that the aggregate amount actually paid by the Fund toward the operating expenses in any month (taking into account the recoupment) will not cause the Fund to exceed the lesser of: (1) the expense cap in place at the time of the fee waiver and/or expense reimbursement; or (2) the expense cap in place at the time of the recoupment. The agreement will continue in effect at least through April 30, 2022 and may only be terminated prior to the end of this term by or with the consent of the Board of Directors.

22


Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Please note that the one-year numbers below are based on the Fund’s net expenses resulting from the expense reimbursement agreement described above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 Year 3 Years 5 Years 10 Years
Investor Class Shares $122 $527 $957 $2,155
Institutional Class Shares $97 $450 $827 $1,886

Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 61% of the average value of its portfolio.

Principal Investment Strategies
The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in a diversified portfolio of common stocks of companies with small market capitalizations. The Advisor defines such companies as those with a maximum market capitalization of $8 billion at the time of investment. Although the Fund invests principally in U.S. companies, the Fund may invest up to 15% of its total assets in equity securities (consisting of common stocks, ordinary shares and American Depositary Receipts (“ADRs”)) of foreign companies that are traded on U.S. exchanges. The Advisor seeks to identify industries and business models that it believes are priced at a discount to their true value because they are currently out of favor with the market or have earnings or profit potential that may be underestimated by Wall Street analysts. The Advisor seeks to purchase small-cap securities believed to have favorable valuation characteristics and opportunities for increased growth.

The Advisor also considers environmental, social and governance (ESG) factors in selecting investments for the Fund. As a long-term, buy and hold investor, the Advisor includes ESG considerations as part of its overall investment decision-making. The Advisor believes ESG factors vary across companies, industries, and sectors and therefore does not apply exclusionary ESG screens in selecting investments for the Fund.

23


The Advisor will typically sell a security held by the Fund when the investment thesis changes, the company’s fundamentals deteriorate, the Advisor identifies portfolio structure or risk management needs and/or the security’s valuation relative to its peer group is no longer attractive.

Principal Risks
Please be aware that you may lose money by investing in the Fund. The following is a summary description of certain risks of investing in the Fund.

Stock Market Risks
Stock prices vary and may fall, thus reducing the value of the Fund’s investments. Certain stocks selected for the Fund’s portfolio may decline in value more than the overall stock market. The U.S. and international markets have recently experienced extreme price volatility and reduced liquidity. Continuing market problems may have adverse effects on the Fund.

Value-Style Investing Risks
Because the Fund focuses on value-style stocks, its performance may at times be worse than the performance of funds that focus on other types of stocks or that have a different investment style. Value-style investing may go out of favor with investors, negatively impacting the Fund’s growth and performance. Value stocks may also fail to appreciate as much as anticipated, and their intrinsic value may not be recognized by the broader market.

Management Risks
The Advisor’s judgments about the attractiveness, value and potential appreciation of particular companies’ stocks may prove to be incorrect. Such errors could result in a negative return to the Fund and a loss to you.

Equity Securities Risks
Equity securities may experience sudden, unpredictable drops in value or long periods of decline in value. This change may occur because of factors that affect securities markets generally or factors affecting specific industries, sectors or companies in which the Fund invests.

Common Stock Risks
Common stocks are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. Holders of common stocks are generally subject to greater risk than holders of preferred stocks and debt obligations of the same issuer because common stockholders generally have inferior rights to receive payments from issuers in comparison with the rights of preferred stockholders, bondholders and other creditors.

Small Market Capitalization Risks
Stocks of companies with small market capitalizations involve a higher degree of risk than investments in the broad-based equities market. Small-capitalization stocks are
24


often more volatile and less liquid than investments in larger companies, and are more likely to be adversely affected by poor economic or market conditions. In addition, small-capitalization companies may lack the management experience, financial resources and product diversification of larger companies, making them more susceptible to market pressures and business failure.

Financial Sector Risks
The Fund may invest a relatively large percentage of its assets in the financial sector given its weighting in the Fund’s benchmark and, therefore, the Fund’s performance may be adversely affected by volatility in financial and credit markets. Financial services companies are subject to extensive government regulation, interest rate risk, credit losses and price competition, among other factors.

Small Fund Risk
There can be no assurance that the Fund will grow to or maintain an economically viable size.
ESG Considerations Risk
Consideration of ESG factors in the investment process may cause the Advisor to forgo opportunities to invest in certain companies or to gain exposure to certain industries or regions and, therefore, carries the risk that, under certain market conditions, the Fund may underperform funds that do not consider such factors. There are not universally accepted ESG factors and the Advisor will consider them in its discretion.

Foreign Securities Risks
Securities of foreign issuers and ADRs are subject to certain inherent risks, such as political or economic instability of the country of issue and government policies, tax rates, withholding of foreign taxes, prevailing interest rates and credit conditions that may differ from those affecting domestic corporations. Securities of foreign issuers and ADRs may also be subject to currency fluctuations and controls and greater fluctuation in price than the securities of domestic corporations. Foreign companies generally are subject to different auditing and financial reporting standards than those applicable to domestic companies.

The United Kingdom (UK) withdrew from the European Union (EU) on January 31, 2020 following a June 2016 referendum referred to as “Brexit.” Although the UK and EU agreed to a trade deal in December 2020, certain post-EU arrangements, such as those relating to the offering of cross-border financial services and sharing of cross-border data, have yet to be reached and the EU’s willingness to grant equivalency to the UK remains uncertain. There is significant market uncertainty regarding Brexit’s ramifications, and the range of possible political, regulatory, economic and market outcomes is difficult to predict. The uncertainty surrounding the UK’s economy, and its legal, political, and economic relationship with the remaining member states of the EU, may cause considerable disruption in securities markets, including decreased liquidity and increased volatility, as well as currency fluctuations in the British pound’s exchange rate against the U.S. dollar.
25



Recent Market Events
U.S. and international markets have experienced significant periods of volatility in recent months and years due to a number of economic, political, social and global macro factors including the impact of the coronavirus (COVID-19) global pandemic, which has resulted in a global health crisis, business interruptions, growth concerns in the U.S. and overseas, layoffs, rising unemployment claims, changed travel and social behaviors, reduced consumer spending, and fiscal, monetary and other government policy responses. The impact of the COVID-19 pandemic may last for an extended period of time.

Performance
The performance information provides some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for one and five years and since inception period compare with those of a broad measure of market performance. Past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available on the Fund’s website at www.bairdfunds.com or by calling the Fund toll-free at 1-866-442-2473.

Calendar Year Returns for Institutional Class Shares
chart-d8edfbf365064a87b561.jpg
Best quarter: 4th quarter 2020 27.62  %
Worst quarter: 1st quarter 2020 -27.11  %
26


Average Annual Total Returns as of December 31, 2020
1 Year 5 Years
Since Inception
(5/1/12)
Institutional Class
Return Before Taxes 2.85% 6.69% 7.73%
Return After Taxes on Distributions 1.56% 5.96% 7.14%
Return After Taxes on Distributions and Sale of Fund Shares 2.58% 5.20% 6.18%
Investor Class
Return Before Taxes 2.54% 6.43% 7.46%
Russell 2000® Value Index
(reflects no deduction for fees, expenses or taxes)
4.63% 9.65% 9.56%

After‑tax returns are shown only for Institutional Class shares, and the after‑tax returns for Investor Class shares will vary. After‑tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after‑tax returns depend on your tax situation and may differ from those shown. After‑tax returns are not relevant if you hold your shares through a tax‑deferred account, such as a 401(k) plan or an individual retirement account.

The Return After Taxes on Distributions and Sale of Fund Shares may be higher than other return figures when a capital loss occurs upon the redemption of Fund shares and provides an assumed tax benefit that increases the after‑tax return.

Investment Advisor
Robert W. Baird & Co. Incorporated is the Fund’s investment advisor.

Portfolio Manager
Name
Portfolio
Manager of
the Fund
Since
Title
Michelle E. Stevens, CFA 2012 Senior Portfolio Manager for Baird Equity Asset Management and Managing Director of the Advisor

For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to “Purchase and Sale of Fund Shares, Taxes and Financial Intermediary Compensation” on page 44.
27


Chautauqua International Growth Fund

Investment Objective
The investment objective of the Chautauqua International Growth Fund (the “Fund”) is to provide long‑term capital appreciation.

Fees and Expenses of the Fund
The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.

Shareholder Fees
(fees paid directly from your investment)
Investor
Class Shares
Institutional
Class Shares
Redemption Fee (as a percentage of amount redeemed, for shares held 90 days or less)
2.00% 2.00%

Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
Investor
Class Shares
Institutional
Class Shares
Management Fees 0.75% 0.75%
Distribution and Service (12b‑1) Fees 0.25% None
Other Expenses 0.15% 0.15%
Total Annual Fund Operating Expenses 1.15% 0.90%
Less: Fee Waiver/Expense Reimbursement(1)
-0.10% -0.10%
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement 1.05% 0.80%
(1)Robert W. Baird & Co. Incorporated (the “Advisor”) has contractually agreed to waive management fees and/or reimburse other expenses in order to limit the Fund’s total annual fund operating expenses to 1.05% of average daily net assets for the Investor Class shares and 0.80% of average daily net assets for the Institutional Class shares. The Advisor’s expense reimbursement agreement includes the fees and expenses incurred by the Fund in connection with the Fund’s investments in other investment companies (to the extent, in the aggregate, such expenses exceed 0.0049% of the Fund’s net assets) and interest expense, but excludes taxes, brokerage commissions and extraordinary expenses. If such excluded expenses were incurred, Fund expenses would be higher. The Advisor is entitled to recoup the fees waived and/or expenses reimbursed within a three‑year period from the time the expenses were incurred provided that the aggregate amount actually paid by the Fund toward the operating expenses in any month (taking into account the recoupment) will not cause the Fund to exceed the lesser of: (1) the expense cap in place at the time of the fee waiver and/or expense reimbursement; or (2) the expense cap
28


in place at the time of the recoupment. The agreement will continue in effect at least through April 30, 2022 and may only be terminated prior to the end of this term by or with the consent of the Board of Directors.

Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Please note that the one‑year numbers below are based on the Fund’s net expenses resulting from the expense reimbursement agreement described above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 Year 3 Years 5 Years 10 Years
Investor Class Shares $107 $355 $623 $1,389
Institutional Class Shares $82 $277 $489 $1,099

Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 31% of the average value of its portfolio.

Principal Investment Strategies
The Fund invests primarily in equity securities of non‑U.S. companies with medium to large market capitalizations (i.e., those typically with market capitalizations in excess of U.S. $5 billion at the time of purchase). Equity securities in which the Fund may invest include common stocks, preferred stocks, depositary shares and receipts, rights, warrants and exchange-traded funds (“ETFs”). Under normal market conditions, the Fund will invest at least 65% of its total assets at the time of purchase in non‑U.S. companies. The Fund will normally be diversified among at least three countries other than the U.S. The Fund invests in developed markets and emerging markets. In evaluating potential investments, the Advisor considers companies with growth characteristics that the Advisor believes are likely to benefit from current macro‑economic and global trends and possess sustainable competitive advantages. The Fund will normally hold the securities of a limited number (generally 25 to 35) of companies. While the Fund may invest in U.S. companies as a part of its investment
29


strategy, the Fund may invest up to 100% of its assets in non-U.S. companies and may at times have little or no investment in U.S. companies.

In determining whether a company is a U.S. or non-U.S. company, the Advisor considers a number of factors, including the company’s jurisdiction of incorporation or organization, the location of the company’s corporate or operational headquarters or principal place of business, the location of the principal trading market for the company’s common stock, the location(s) of a majority of the company’s assets or production of its goods and services, and the locations of the primary sources of the company’s revenues or profits.

The Advisor believes that environmental, social and governance (ESG) factors can have a material effect on investment returns. The Advisor seeks to understand pertinent ESG topics that are relevant to individual companies that are being considered for investment in the Fund. Examples include, but are not limited to, corporate governance structure, climate change, supply chain integrity, labor practices and human resource management.

The Fund may invest in ETFs. For example, the Fund may invest cash temporarily in ETFs until individual securities are identified for purchase or until the Fund is able to purchase securities in a particular country or region.

The Advisor will typically sell or reduce a position to mitigate specific risk, to take advantage of better opportunities, to avoid country risks, when the Advisor believes that valuations are high relative to changes in the company’s fundamentals, or when operational performance does not meet the Advisor’s expectations.

Principal Risks
Please be aware that you may lose money by investing in the Fund. The following is a summary description of certain risks of investing in the Fund.

Stock Market Risks
Stock prices vary and may fall, thus reducing the value of the Fund’s investments. Certain stocks selected for the Fund’s portfolio may decline in value more than the overall stock market. International markets have recently experienced extreme price volatility and reduced liquidity. Continuing market problems may have adverse effects on the Fund.

Growth‑Style Investing Risks
Because the Fund focuses on growth‑style stocks, its performance may at times be better or worse than the performance of funds that focus on other types of stocks or that have a different investment style. Growth stocks are often characterized by high price‑to‑earnings ratios, which may be more volatile than stocks with lower price‑to‑earnings ratios.

30


Limited Holdings Risks
Although it is diversified, the Fund may invest a relatively high percentage of assets in a focused number of issuers, which may result in increased volatility.

Management Risks
The Advisor’s judgments about the attractiveness, value and potential appreciation of particular companies’ stocks may prove to be incorrect. Such errors could result in a negative return to the Fund and a loss to you.

Equity Securities Risks
Equity securities may experience sudden, unpredictable drops in value or long periods of decline in value. This change may occur because of factors that affect securities markets generally or factors affecting specific industries, sectors or companies in which the Fund invests.

Common Stock Risks
Common stocks are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. Holders of common stocks are generally subject to greater risk than holders of preferred stocks and debt obligations of the same issuer because common stockholders generally have inferior rights to receive payments from issuers in comparison with the rights of preferred stockholders, bondholders and other creditors.

Currency Risks
The value of foreign investments held by the Fund may be significantly affected by changes in foreign currency exchange rates. Generally, when the U.S. dollar rises in value against a foreign currency, an investment in that foreign currency loses value because it is worth fewer U.S. dollars. The foreign currency exchange market can be highly volatile for a variety of reasons. For example, changes in monetary policy, macro-economic factors, currency conversion expenses, restrictions, exchange control regulation, devaluation and political developments may have a significant impact on the value of any investments denominated in that currency.

Medium and Large Capitalization Risks
Stocks of companies with certain market capitalization may perform differently from the equities markets generally. At times, medium and large capitalization stocks may underperform as compared to small capitalization stocks. Larger, more established companies may be unable to respond to new competitive challenges such as changes in consumer tastes or innovative smaller competitors. Moreover, medium capitalization stocks may perform differently from large capitalization stocks, as medium capitalization stocks may be less liquid and more volatile than large capitalization stocks.

Foreign Securities Risks
Securities of foreign issuers and ADRs are subject to certain inherent risks, such as political or economic instability of the country of issue and government policies, tax
31


rates, withholding of foreign taxes, prevailing interest rates and credit conditions that may differ from those affecting domestic corporations. Securities of foreign issuers and ADRs may also be subject to currency fluctuations and controls and greater fluctuation in price than the securities of domestic corporations. Foreign companies generally are subject to different auditing and financial reporting standards than those applicable to domestic companies.

The United Kingdom (UK) withdrew from the European Union (EU) on January 31, 2020 following a June 2016 referendum referred to as “Brexit.” Although the UK and EU agreed to a trade deal in December 2020, certain post-EU arrangements, such as those relating to the offering of cross-border financial services and sharing of cross-border data, have yet to be reached and the EU’s willingness to grant equivalency to the UK remains uncertain. There is significant market uncertainty regarding Brexit’s ramifications, and the range of possible political, regulatory, economic and market outcomes is difficult to predict. The uncertainty surrounding the UK’s economy, and its legal, political, and economic relationship with the remaining member states of the EU, may cause considerable disruption in securities markets, including decreased liquidity and increased volatility, as well as currency fluctuations in the British pound’s exchange rate against the U.S. dollar.

Emerging Market Risks
Investments in emerging markets can involve risks in addition to and greater than those generally associated with investing in more developed foreign markets. The extent of economic development, political stability, market depth, infrastructure, capitalization, and regulatory oversight can be less than in more developed markets. Emerging market economies can be subject to greater social, economic, regulatory, and political uncertainties, including interruptions in trading. All of these factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets.

Region, Country, Sector Risks
The Fund may invest a higher percentage of its total assets in a particular country, region or sector of international markets, which may have a significant impact on the Fund’s overall portfolio.

ETF Risks
You will indirectly bear fees and expenses charged by the ETFs in which the Fund invests, in addition to the Fund’s direct fees and expenses. Accordingly, your cost of investing in the Fund will generally be higher than the cost of investing directly in the ETF. The market price of ETF shares may trade at a discount to their net asset value or an active trading market for ETF shares may not develop or be maintained. ETFs in which the Fund invests typically will not be able to replicate exactly the performance of the underlying assets they track.

32


Valuation Risks
The prices provided by the Fund’s pricing services or independent dealers or the fair value determinations made by the valuation committee of the Advisor may be different from the prices used by other mutual funds or from the prices at which securities are actually bought or sold. The prices of certain securities provided by pricing services may be subject to frequent and significant change, and will vary depending on the information that is available.

ESG Considerations Risk
Consideration of ESG factors in the investment process may cause the Advisor to forgo opportunities to invest in certain companies or to gain exposure to certain industries or regions and, therefore, carries the risk that, under certain market conditions, the Fund may underperform funds that do not consider such factors. There are not universally accepted ESG factors and the Advisor will consider them in its discretion.

Recent Market Events
U.S. and international markets have experienced significant periods of volatility in recent months and years due to a number of economic, political, social and global macro factors including the impact of the coronavirus (COVID-19) global pandemic, which has resulted in a global health crisis, business interruptions, growth concerns in the U.S. and overseas, layoffs, rising unemployment claims, changed travel and social behaviors, reduced consumer spending, and fiscal, monetary and other government policy responses. The impact of the COVID-19 pandemic may last for an extended period of time.

Performance
The performance information provides some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for one year and since inception period compare with those of a broad measure of market performance. Past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available on the Fund’s website at www.bairdfunds.com or by calling the Fund toll-free at 1-866-442-2473.

33


Calendar Year Returns for Institutional Class Shares
chart-484d5f5978de450f9e61.jpg
Best quarter: 2nd quarter 2020 25.57  %
Worst quarter:
4th quarter 2018
-16.88  %
Average Annual Total Returns as of December 31, 2020
1 Year
Since Inception
(4/15/16)
Institutional Class
Return Before Taxes 39.84% 14.81%
Return After Taxes on Distributions 39.65% 14.21%
Return After Taxes on Distributions and Sale of Fund Shares 23.77% 11.68%
Investor Class
Return Before Taxes 39.37% 14.52%
MSCI ACWI ex USA Index
(reflects no deductions for fees, expenses or taxes)
10.65% 9.16%

After‑tax returns are shown only for Institutional Class shares, and the after‑tax returns for Investor Class shares will vary. After‑tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after‑tax returns depend on your tax situation and may differ from those shown. After‑tax returns are not relevant if you hold your shares through a tax‑deferred account, such as a 401(k) plan or an individual retirement account.

Investment Advisor
Robert W. Baird & Co. Incorporated is the Fund’s investment advisor.

34


Portfolio Managers
Name
Portfolio
Manager of
the Fund
Since
Title
Brian Beitner, CFA 2016 Portfolio Manager of the Fund, Partner of the Advisor’s Chautauqua Capital Management Division, and Managing Director of the Advisor
Jesse A. Flores, CFA 2020 Portfolio Manager of the Fund, Partner of the Advisor’s Chautauqua Capital Management Division, and Director of the Advisor
Haicheng Li, CFA 2020 Portfolio Manager of the Fund, Managing Partner of the Advisor’s Chautauqua Capital Management Division, and Director of the Advisor
Nathaniel R. Velarde 2020 Portfolio Manager of the Fund, Partner of the Advisor’s Chautauqua Capital Management Division, and Director of the Advisor

For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to “Purchase and Sale of Fund Shares, Taxes and Financial Intermediary Compensation” on page 44.
35


Chautauqua Global Growth Fund

Investment Objective
The investment objective of the Chautauqua Global Growth Fund (the “Fund”) is to provide long‑term capital appreciation.

Fees and Expenses of the Fund
The table below describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and example below.

Shareholder Fees
(fees paid directly from your investment)
Investor
Class Shares
Institutional
Class Shares
Redemption Fee (as a percentage of amount redeemed, for shares held 90 days or less)
2.00% 2.00%

Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
Investor
Class Shares
Institutional
Class Shares
Management Fees 0.75% 0.75%
Distribution and Service (12b‑1) Fees 0.25% None
Other Expenses 0.29% 0.29%
Total Annual Fund Operating Expenses 1.29% 1.04%
Less: Fee Waiver/Expense Reimbursement(1)
-0.24% -0.24%
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement 1.05% 0.80%
(1)Robert W. Baird & Co. Incorporated (the “Advisor”) has contractually agreed to waive management fees and/or reimburse other expenses in order to limit the Fund’s total annual fund operating expenses to 1.05% of average daily net assets for the Investor Class shares and 0.80% of average daily net assets for the Institutional Class shares. The Advisor’s expense reimbursement agreement includes the fees and expenses incurred by the Fund in connection with the Fund’s investments in other investment companies (to the extent, in the aggregate, such expenses exceed 0.0049% of the Fund’s net assets) and interest expense, but excludes taxes, brokerage commissions and extraordinary expenses. If such excluded expenses were incurred, Fund expenses would be higher. The Advisor is entitled to recoup the fees waived and/or expenses reimbursed within a three‑year period from the time the expenses were incurred; provided that the aggregate amount actually paid by the Fund toward the operating expenses in any month (taking into account the recoupment) will not cause the Fund to exceed the lesser of: (1) the expense cap in place at the time of the fee waiver and/or expense reimbursement or (2) the expense cap
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in place at the time of the recoupment. The agreement will continue in effect at least through April 30, 2022 and may only be terminated prior to the end of this term by or with the consent of the Board of Directors.

Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Please note that the one‑year numbers below are based on the Fund’s net expenses resulting from the expense reimbursement agreement described above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
1 Year 3 Years 5 Years 10 Years
Investor Class Shares $107 $385 $685 $1,535
Institutional Class Shares $82 $307 $551 $1,249

Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 24% of the average value of its portfolio.

Principal Investment Strategies
The Fund invests primarily in equity securities of both U.S. and non‑U.S. companies with medium to large market capitalizations (i.e., those typically with market capitalizations in excess of U.S. $5 billion at the time of purchase). Equity securities in which the Fund may invest include common stocks, preferred stocks, depositary shares and receipts, rights, warrants and exchange-traded funds (“ETFs”). Under normal market conditions, the Fund will invest at least 40% of its total assets at the time of purchase in non‑U.S. companies. The Fund will normally be diversified among at least three different countries, including the United States. The Fund invests in developed markets and emerging markets. In evaluating potential investments, the Advisor considers companies with growth characteristics that the Advisor believes are likely to benefit from current macro‑economic and global trends and possess sustainable competitive advantages. The Fund will normally hold a limited number (generally 35 to 45) of companies.

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In determining whether a company is a U.S. or non-U.S. company, the Advisor considers a number of factors, including the company’s jurisdiction of incorporation or organization, the location of the company’s corporate or operational headquarters or principal place of business, the location of the principal trading market for the company’s common stock, the location(s) of a majority of the company’s assets or production of its goods and services, and the locations of the primary sources of the company’s revenues or profits.

The Advisor believes that environmental, social and governance (ESG) factors can have a material effect on investment returns. The Advisor seeks to understand pertinent ESG topics that are relevant to individual companies that are being considered for investment in the Fund. Examples include, but are not limited to, corporate governance structure, climate change, supply chain integrity, labor practices and human resource management.

The Fund may invest in ETFs. For example, the Fund may invest cash temporarily in ETFs until individual securities are identified for purchase or until the Fund is able to purchase securities in a particular country or region.

The Advisor will typically sell or reduce a position to mitigate specific risk, to take advantage of better opportunities, to avoid country risks, when the Advisor believes that valuations are high relative to the changes in the company’s fundamentals, or when operational performance does not meet the Advisor’s expectations.

Principal Risks
Please be aware that you may lose money by investing in the Fund. The following is a summary description of certain risks of investing in the Fund.

Stock Market Risks
Stock prices vary and may fall, thus reducing the value of the Fund’s investments. Certain stocks selected for the Fund’s portfolio may decline in value more than the overall stock market. The U.S. and international markets have recently experienced extreme price volatility and reduced liquidity. Continuing market problems may have adverse effects on the Fund.

Growth‑Style Investing Risks
Because the Fund focuses on growth‑style stocks, its performance may at times be better or worse than the performance of funds that focus on other types of stocks or that have a different investment style. Growth stocks are often characterized by high price‑to‑earnings ratios, which may be more volatile than stocks with lower price‑to‑earnings ratios.

Limited Holdings Risks
Although it is diversified, the Fund may invest a relatively high percentage of assets in a focused number of issuers, which may result in increased volatility.
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Management Risks
The Advisor’s judgments about the attractiveness, value and potential appreciation of particular companies’ stocks may prove to be incorrect. Such errors could result in a negative return to the Fund and a loss to you.

Equity Securities Risks
Equity securities may experience sudden, unpredictable drops in value or long periods of decline in value. This change may occur because of factors that affect securities markets generally or factors affecting specific industries, sectors or companies in which the Fund invests.

Common Stock Risks
Common stocks are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. Holders of common stocks are generally subject to greater risk than holders of preferred stocks and debt obligations of the same issuer because common stockholders generally have inferior rights to receive payments from issuers in comparison with the rights of preferred stockholders, bondholders and other creditors.

Currency Risks
The value of foreign investments held by the Fund may be significantly affected by changes in foreign currency exchange rates. Generally, when the U.S. dollar rises in value against a foreign currency, an investment in that foreign currency loses value because it is worth fewer U.S. dollars. The foreign currency exchange market can be highly volatile for a variety of reasons. For example, changes in monetary policy, macro-economic factors, currency conversion expenses, restrictions, exchange control regulation, devaluation and political developments may have a significant impact on the value of any investments denominated in that currency.

Medium to Large Capitalization Risks
Stocks of companies with certain market capitalization may perform differently from the equities markets generally. The Fund’s investments will focus on companies with medium to large market capitalizations. At times, medium capitalization and large capitalization stocks may underperform as compared to small capitalization stocks, and vice versa. Larger, more established companies may be unable to respond to new competitive challenges such as changes in consumer tastes or innovative smaller competitors. Moreover, mid capitalization stocks may perform differently from large capitalization stocks, as medium capitalization stocks may be less liquid and more volatile than large capitalization stocks.

Foreign Securities Risks
Securities of foreign issuers and ADRs are subject to certain inherent risks, such as political or economic instability of the country of issue and government policies, tax rates, withholding of foreign taxes, prevailing interest rates and credit conditions that
39


may differ from those affecting domestic corporations. Securities of foreign issuers and ADRs may also be subject to currency fluctuations and controls and greater fluctuation in price than the securities of domestic corporations. Foreign companies generally are subject to different auditing and financial reporting standards than those applicable to domestic companies.

The United Kingdom (UK) withdrew from the European Union (EU) on January 31, 2020 following a June 2016 referendum referred to as “Brexit.” Although the UK and EU agreed to a trade deal in December 2020, certain post-EU arrangements, such as those relating to the offering of cross-border financial services and sharing of cross-border data, have yet to be reached and the EU’s willingness to grant equivalency to the UK remains uncertain. There is significant market uncertainty regarding Brexit’s ramifications, and the range of possible political, regulatory, economic and market outcomes is difficult to predict. The uncertainty surrounding the UK’s economy, and its legal, political, and economic relationship with the remaining member states of the EU, may cause considerable disruption in securities markets, including decreased liquidity and increased volatility, as well as currency fluctuations in the British pound’s exchange rate against the U.S. dollar.

Emerging Market Risks
Investments in emerging markets can involve risks in addition to and greater than those generally associated with investing in more developed foreign markets. The extent of economic development, political stability, market depth, infrastructure, capitalization, and regulatory oversight can be less than in more developed markets. Emerging market economies can be subject to greater social, economic, regulatory, and political uncertainties, including interruptions in trading. All of these factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets.

Region, Country, Sector Risks
The Fund may invest a higher percentage of its total assets in a particular country, region or sector of international markets, which may have a significant impact on the Fund’s overall portfolio.

ETF Risks
You will indirectly bear fees and expenses charged by the ETFs in which the Fund invests, in addition to the Fund’s direct fees and expenses. Accordingly, your cost of investing in the Fund will generally be higher than the cost of investing directly in the ETF. The market price of ETF shares may trade at a discount to their net asset value or an active trading market for ETF shares may not develop or be maintained. ETFs in which the Fund invests typically will not be able to replicate exactly the performance of the underlying assets they track.

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Valuation Risks
The prices provided by the Fund’s pricing services or independent dealers or the fair value determinations made by the valuation committee of the Advisor may be different from the prices used by other mutual funds or from the prices at which securities are actually bought or sold. The prices of certain securities provided by pricing services may be subject to frequent and significant change, and will vary depending on the information that is available.

ESG Considerations Risk
Consideration of ESG factors in the investment process may cause the Advisor to forgo opportunities to invest in certain companies or to gain exposure to certain industries or regions and, therefore, carries the risk that, under certain market conditions, the Fund may underperform funds that do not consider such factors. There are not universally accepted ESG factors and the Advisor will consider them in its discretion.

Recent Market Events
U.S. and international markets have experienced significant periods of volatility in recent months and years due to a number of economic, political, social and global macro factors including the impact of the coronavirus (COVID-19) global pandemic, which has resulted in a global health crisis, business interruptions, growth concerns in the U.S. and overseas, layoffs, rising unemployment claims, changed travel and social behaviors, reduced consumer spending, and fiscal, monetary and other government policy responses. The impact of the COVID-19 pandemic may last for an extended period of time.

Performance
The performance information provides some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for one year and since inception period compare with those of a broad measure of market performance. Past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available on the Fund’s website at www.bairdfunds.com or by calling the Fund toll-free at 1-866-442-2473.

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Calendar Year Returns for Institutional Class Shares
chart-d9f386324bf74dab86e1.jpg
Best quarter: 2nd quarter 2020 24.11  %
Worst quarter:
4th quarter 2018
-18.81  %
Average Annual Total Returns as of December 31, 2020
1 Year
Since Inception
(4/15/16)
Institutional Class
Return Before Taxes 37.97% 17.39%
Return After Taxes on Distributions 37.86% 16.90%
Return After Taxes on Distributions and Sale of Fund Shares 22.63% 13.88%
Investor Class
Return Before Taxes 37.94% 17.15%
MSCI ACWI Index
(reflects no deductions for fees, expenses or taxes)
16.25% 12.65%

After‑tax returns are shown only for Institutional Class shares, and the after‑tax returns for Investor Class shares will vary. After‑tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after‑tax returns depend on your tax situation and may differ from those shown. After‑tax returns are not relevant if you hold your shares through a tax‑deferred account, such as a 401(k) plan or an individual retirement account.

Investment Advisor
Robert W. Baird & Co. Incorporated is the Fund’s investment advisor.

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Portfolio Managers
Name
Portfolio
Manager of
the Fund
Since
Title
Brian Beitner, CFA 2016 Portfolio Manager of the Fund, Partner of the Advisor’s Chautauqua Capital Management Division, and Managing Director of the Advisor
Jesse A. Flores, CFA 2020 Portfolio Manager of the Fund, Partner of the Advisor’s Chautauqua Capital Management Division, and Director of the Advisor
Haicheng Li, CFA 2020 Portfolio Manager of the Fund, Managing Partner of the Advisor’s Chautauqua Capital Management Division, and Director of the Advisor
Nathaniel R. Velarde 2020 Portfolio Manager of the Fund, Partner of the Advisor’s Chautauqua Capital Management Division, and Director of the Advisor

For important information about the purchase and sale of Fund shares, tax information and financial intermediary compensation, please turn to “Purchase and Sale of Fund Shares, Taxes and Financial Intermediary Compensation” on page 44.
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Purchase and Sale of Fund Shares, Taxes and Financial Intermediary Compensation

Purchase and Sale of Fund Shares
You may purchase or redeem shares of each Fund on any day the New York Stock Exchange (the “NYSE”) is open by written request via mail (Baird Funds, Inc. c/o U.S. Bank Global Fund Services, P.O. Box 701, Milwaukee, WI 53201-0701) or overnight delivery (Baird Funds, Inc. c/o U.S. Bank Global Fund Services, 615 E. Michigan Street, Third Floor, Milwaukee, WI 53202), by wire transfer, by telephone at 1‑866‑442-2473, or through a financial intermediary. Purchases and redemptions by telephone are only permitted if you previously established these options on your account.

The minimum initial and subsequent investment amounts are shown below, although the Funds may reduce or waive them in some cases in their discretion.
Initial Purchase Subsequent Purchases
Investor Class $1,000 – Individual Retirement Accounts
(Traditional/Roth/SIMPLE/SEP IRAs)
and Coverdell Education Savings Account
$100
$2,500 – All Other Accounts $100
Institutional Class $10,000 – All Account Types No minimum

Tax Information
Each Fund’s distributions may be subject to federal income tax and may be taxed as ordinary income or long-term capital gains unless you are investing through a tax-deferred or other tax-advantaged arrangement, such as a 401(k) plan or an individual retirement account (“IRA”). You may be taxed later upon the withdrawal of monies from such tax-deferred or other tax-advantaged arrangements.

Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase Fund shares through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. In addition, some broker-dealers may regard Institutional Class shares of the Fund as “clean” shares and charge you a commission on the purchase of such shares. Ask your salesperson or visit your financial intermediary’s website for more information.
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Principal Investment Strategies, Related Risks and Disclosure of Portfolio Holdings

This Prospectus describes the Baird MidCap Fund (“MidCap Fund”), Baird Small/Mid Cap Growth Fund (the “Small/Mid Cap Growth Fund”), Baird Small/Mid Cap Value Fund (“Small/Mid Cap Value Fund”), Baird SmallCap Value Fund (“SmallCap Value Fund”), Chautauqua International Growth Fund (“International Growth Fund”) and Chautauqua Global Growth Fund (“Global Growth Fund”) (each, a “Fund” and collectively, the “Funds”), six mutual funds offered by Baird Funds, Inc. (“Baird Funds” or the “Company”).
Investment Objectives

MidCap Fund
The investment objective of the MidCap Fund is to provide long-term growth of capital.

Small/Mid Cap Growth Fund
The investment objective of the Small/Mid Cap Growth Fund is to provide long-term growth of capital.

Small/Mid Cap Value Fund
The investment objective of the Small/Mid Cap Value Fund is to provide long-term capital appreciation.

SmallCap Value Fund
The investment objective of the SmallCap Value Fund is to provide long-term capital appreciation.

International Growth Fund
The investment objective of the International Growth Fund is to provide long‑term capital appreciation.

Global Growth Fund
The investment objective of the Global Growth Fund is to provide long‑term capital appreciation.

These investment objectives are fundamental and may not be changed without shareholder approval. The percentage limitations set forth under “Principal Investment Strategies” are measured at the time of investment.

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Principal Investment Strategies

MidCap Fund
The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in the equity securities of mid-capitalization companies, principally common stocks, preferred stocks, securities convertible into common stocks and ADRs that are traded on major U.S. exchanges. Although the Fund principally invests in U.S. companies, the Fund may invest up to 15% of its total assets in equity securities (consisting of common stocks, ordinary shares and ADRs) of foreign companies. The Fund defines mid-capitalization companies as those companies with a market capitalization within the range of companies in the Russell Midcap® Growth Index at the time of investment. As of March 31, 2021, the market capitalization of companies in the Russell MidCap® Growth Index ranged from $702.3 million to $55.9 billion, with median and weighted average market capitalizations of $12.5 billion and $24.4 billion, respectively. The Index is reconstituted annually in June. The Russell Midcap® Growth Index measures the performance of those Russell Midcap® companies with higher price-to-book ratios and higher forecasted growth values. The Russell Midcap® Index consists of the 800 smallest companies in the Russell 1000® Index. The Russell 1000® Index consists of the largest 1,000 companies in the Russell 3000® Index, which in turn consists of the 3,000 largest U.S. domiciled publicly traded common stocks by market capitalization. These indices do not reflect any deduction for fees, expenses or taxes. A direct investment in an index is not possible.

When analyzing equity securities to be purchased by the Fund, the Advisor emphasizes a company’s growth prospects. The Fund’s investments are selected using a variety of both quantitative techniques and fundamental research in seeking to maximize the Fund’s expected return while controlling risk.

The Fund seeks a portfolio comprised of companies which reflect “PRIME” growth factors. These factors are analyzed as part of the Advisor’s investment process and are represented in the following ways:

Durable Profitability. Companies with attractive margins and favorable margin trends can drive superior earnings growth.

Sustainable Revenue Growth. Solid barriers to entry, favorable pricing and demonstrated product/service track record can aid top-line prospects.

Favorable Industry dynamics.

Management strength and integrity is a critical element of a high quality company. Growth, profitability and shareholder returns provide insight into management effectiveness. The Advisor seeks companies with management that position their company’s balance sheet to be a source of strength.

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Understanding market Expectations of a company is important in assessing risk/return opportunities.

The Advisor believes an analysis of these PRIME factors yields insights to the competitive strength of a business model.

The Advisor applies the following strategies when purchasing securities for the Fund’s portfolio:

Intentionally avoiding short-term trading strategies and rapid shifts in industry positions.

Setting sector limits at the greater of 30% of the Fund’s total assets or double the weighting of the Russell Midcap® Growth Index in any one sector, as defined by such index. Thus, the Fund may be heavily invested in a single sector. However, a single sector may include numerous subsectors or industries. The Fund may therefore be concentrated in one sector, while being diversified among several industries.

Typically holding the securities of fewer than 60 companies with exposure to at least 20 industries.

Seeking securities whose growth prospects, in the Advisor’s opinion, are not reflected in their current stock prices.

Limiting the size of any one new position. No security will represent more than 5% of the Fund’s total assets at the time of purchase.

Leveraging key tools, such as the Advisor’s proprietary tier-board, which provides a visual representation of portfolio positions and enables discussion on relative weights of underlying positions.

The Advisor may sell a security due to achievement of valuation targets, significant change in the initial investment premise or fundamental deterioration. Fundamental deterioration occurs when a company is no longer able to achieve the results generally expected by the investment management team due to a specific issue, such as a loss of a key customer or pricing pressure in the industry.

Small/Mid Cap Growth Fund
The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in the equity securities of U.S. and foreign small- and mid-capitalization companies, principally common stocks and American Depositary Receipts (“ADRs”) that are traded on major U.S. exchanges. Although the Fund principally invests in U.S. companies, the Fund may invest up to 15% of its total assets in equity securities (consisting of common stocks, ordinary shares and ADRs) of foreign companies. The Fund defines small- and mid-capitalization companies as those companies with a market capitalization within the range of companies in the Russell
47


2500® Growth Index at the time of investment. As of March 31, 2021, the market capitalization of companies in the Russell 2500® Growth Index ranged from $49.3 million to $31.6 billion, with median and weighted average market capitalizations of $1.7 billion and $7.6 billion, respectively. The Russell 2500® Growth Index is reconstituted annually in June. The Russell 2500® Growth Index measures the performance of those Russell 2500® companies with higher price-to-book ratios and higher forecasted growth values. When sorted by market cap, the Russell 2500® Index consists of all of the companies in the Russell 3000® Index, except for the 500 largest companies by market capitalization in that index. The Russell 3000® Index consists of the 3,000 largest U.S. domiciled publicly traded common stocks by market capitalization. These indices do not reflect any deduction for fees, expenses or taxes. A direct investment in an index is not possible.

When analyzing equity securities to be purchased by the Fund, the Advisor emphasizes a company’s growth prospects. The Fund’s investments are selected using a variety of both quantitative techniques and fundamental research in seeking to maximize the Fund’s expected return while controlling risk.

The Fund seeks a portfolio comprised of companies which reflect “PRIME” growth factors. These factors are analyzed as part of the Advisor’s investment process and are represented in the following ways:

Durable Profitability. Companies with attractive margins and favorable margin trends can drive superior earnings growth.

Sustainable Revenue Growth. Solid barriers to entry, favorable pricing and demonstrated product/service track records can aid top-line prospects.

Favorable Industry dynamics.

Management strength and integrity is a critical element of a high quality company. Growth, profitability and shareholder returns provide insight into management effectiveness. The Advisor seeks companies with management that position their company’s balance sheet to be a source of strength.

Understanding market Expectations of a company is important in assessing risk/return opportunities.

The Advisor believes an analysis of these PRIME factors yields insights into the competitive strength of a business model.

The Advisor applies the following strategies when purchasing securities for the Fund’s portfolio:

Typically holding the securities of fewer than 70 companies with exposure to approximately 20 industries.

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Seeking securities whose growth prospects, in the Advisor’s opinion, are not reflected in their current stock prices.

Limiting the size of any one new position. No security will represent more than 5% of the Fund’s total assets at the time of purchase.

The Advisor may sell a security when the price meets or exceeds the Advisor’s targeted valuation or price range for the security, when a significant change occurs that adversely affects the Advisor’s premise or reasons for investing in the security or when the company experiences a fundamental deterioration in its business, financial condition or results, or growth prospects. For example, if the Advisor’s premise for investing in a security is its belief that the company has strong management, that the company’s profitability will improve or that the company will be successful in expending its product or service offerings or in entering new markets, and an adverse event or development significantly impacts that premise, the Advisor would generally sell that security. Fundamental deterioration occurs when a company is no longer able to achieve the results generally expected by the investment management team due to a specific issue, such as a loss of a key customer or pricing pressure in the industry.

Small/Mid Cap Value Fund
The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in a diversified portfolio of common stocks of companies with small to medium market capitalizations. The Advisor defines such companies as those with a maximum market capitalization of $17 billion at the time of investment.

Although the Fund principally invests in U.S. companies, the Fund may invest up to 15% of its total assets in equity securities consisting of common stocks, ordinary shares and ADRs of foreign companies that are traded on U.S. exchanges. The Advisor seeks to identify industries and business models that it believes are priced at a discount to their true value because they are currently out of favor with the market or have earnings or profit potential that may be underestimated by Wall Street analysts. The Advisor seeks to purchase securities believed to have favorable valuation characteristics and opportunities for increased growth. The Advisor primarily considers the following factors:

Valuation – Low price/earnings, price/book and price/cash flow ratios. These characteristics are evaluated based upon a proprietary analysis of forecasted levels of profitability.

Balance Sheet Strength – Above average projected net margins, returns on equity, returns on assets, free cash flow generation, and revenue and earnings growth rates; trends in balance sheet items, including inventories and accounts receivable and payable, are also scrutinized.

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Product Offering/Market Position – The company offers a valuable product or service and has a good market position within a viable industry.

Accounting Policies and Management – The company possesses sound financial and accounting policies and has a high quality management team with a track record of success.

The Advisor believes that environmental, social and governance (ESG) factors can affect investment returns for the Fund. As a long-term, buy and hold investor, the Advisor includes ESG considerations as part of its overall investment decision-making. The Advisor’s research process takes a bottom-up approach and considers relevant opportunities and risks including ESG factors. The Advisor believes ESG factors vary across companies, industries, and sectors and therefore does not apply exclusionary ESG screens in selecting investments for the Fund. Rather, the Advisor considers a company’s attentiveness (or lack thereof) to ESG challenges and opportunities because it provides insight into a company’s quality of management, risk profile and other characteristics that may have long-term implications on the company’s performance.

The Advisor will typically sell a security held by the Fund when the investment thesis changes, the company’s fundamentals deteriorate, the Advisor identifies portfolio structure or risk management needs and/or the security’s valuation relative to its peer group is no longer attractive.

SmallCap Value Fund
The Fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in a diversified portfolio of common stocks of companies with small market capitalizations. The Advisor defines such companies as those with a maximum market capitalization of $8 billion at the time of investment.

Although the Fund principally invests in U.S. companies, the Fund may invest up to 15% of its total assets in equity securities consisting of common stocks, ordinary shares and ADRs of foreign companies that are traded on U.S. exchanges. The Advisor seeks to identify industries and business models that it believes are priced at a discount to their true value because they are currently out of favor with the market or have earnings or profit potential that may be underestimated by Wall Street analysts. The Advisor seeks to purchase small-cap securities believed to have favorable valuation characteristics and opportunities for increased growth. The Advisor primarily considers the following factors:

Valuation – Low price/earnings, price/book and price/cash flow ratios. These characteristics are evaluated based upon a proprietary analysis of forecasted levels of profitability.

Balance Sheet Strength – Above average projected net margins, returns on equity, returns on assets, free cash flow generation, and revenue and earnings growth rates; trends in balance sheet items, including inventories and accounts receivable and payable, are also scrutinized.
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Product Offering/Market Position – The company offers a valuable product or service and has a good market position within a viable industry.

Accounting Policies and Management – The company possesses sound financial and accounting policies and has a high quality management team with a track record of success.

The Advisor believes that environmental, social and governance (ESG) factors can affect investment returns for the Fund. As a long-term, buy and hold investor, the Advisor includes ESG considerations as part of its overall investment decision-making. The Advisor’s research process takes a bottom-up approach and considers relevant opportunities and risks including ESG factors. The Advisor believes ESG factors vary across companies, industries, and sectors and therefore does not apply exclusionary ESG screens in selecting investments for the Fund. Rather, the Advisor considers a company’s attentiveness (or lack thereof) to ESG challenges and opportunities because it provides insight into a company’s quality of management, risk profile and other characteristics that may have long-term implications on the company’s performance.

The Advisor will typically sell a security held by the Fund when the investment thesis changes, the company’s fundamentals deteriorate, the Advisor identifies portfolio structure or risk management needs and/or the security’s valuation relative to its peer group is no longer attractive.

Other Principal Investment Strategies (all Funds)
Cash or Similar Investments; Temporary Strategies
Under normal circumstances, each Fund may invest up to 20% of its net assets in cash or liquid reserves (such as U.S. government securities, money market mutual funds, repurchase agreements, commercial paper or certificates of deposit). Each Fund may invest up to 100% of its total assets in cash or similar short-term investment grade securities (such as U.S. government securities, money market mutual funds, repurchase agreements, commercial paper or certificates of deposit) as a temporary defensive position during adverse market, economic or political conditions and in other limited circumstances. To the extent a Fund engages in any temporary strategies or maintains a substantial cash position, the Fund may not achieve its investment objective. To the extent that a Fund invests in money market funds, there will be some duplication of expenses because the Fund would bear its pro rata portion of such money market fund’s management fees and operational expenses.
Investment Grade Securities are:
Securities rated in one of the four highest categories by Standard & Poor’s (“S&P”), Moody’s Investors Service, Inc. (“Moody’s”), Fitch Ratings (“Fitch”) or another nationally recognized statistical rating organization.
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MidCap Fund, Small/Mid Cap Growth Fund, Small/Mid Cap Value Fund and SmallCap Value Fund
Each Fund will provide its shareholders with at least a 60-day notice of any change in such Fund’s policy to invest at least 80% of its assets in the types of securities suggested by its name. For each Fund, the percentage limitations set forth under “Principal Investment Strategies” are measured at the time of investment.

Temporary Investment Measures
Each Fund may temporarily depart from the policy to invest at least 80% of its assets in the types of securities suggested by its name when doing so is believed to be in the Fund’s best interest, so long as the investment is consistent with the Fund’s investment objective.  For instance, a Fund may temporarily invest in equity securities of larger capitalization companies, real estate investment trusts or ETFs that are consistent with the Fund’s objective when the Advisor deems appropriate, such as in response to economic or market conditions or when needed for liquidity.
Foreign Securities and ADRs
Each Fund may invest up to 15% of its total assets in common stocks or ordinary shares of foreign issuers and ADRs that are traded on a major U.S. exchange. ADRs are receipts generally issued by U.S. banks or trust companies evidencing ownership of the underlying foreign securities and denominated in U.S. dollars. ADRs may be sponsored or unsponsored. “Sponsored” ADRs are issued jointly by the issuer of the underlying security and the depository and “unsponsored” ADRs are issued without the participation of the issuer of the deposited security. Holders of unsponsored ADRs generally bear all costs of the facility. With sponsored facilities, the underlying issuer typically bears some of the costs of the facility.

International Growth Fund and Global Growth Fund
The International Growth Fund invests primarily in equity securities of non‑U.S. companies with medium to large market capitalizations (i.e., those typically with market capitalizations in excess of U.S. $5 billion at the time of purchase). Equity securities in which the International Growth Fund may invest include common stocks, preferred stocks, depositary shares and receipts, rights, warrants and ETFs. Under normal conditions, the International Growth Fund will invest at least 65% of its total assets at the time of purchase in non‑U.S. companies. The International Growth Fund invests in developed markets and emerging markets. The International Growth Fund will typically own 25 to 35 companies in its portfolio. Under normal market conditions, the International Growth Fund will maintain investments in companies in at least three countries, other than the United States. While the Fund may invest in U.S. companies as part of its investment strategy, the Fund may invest up to 100% of its assets in non-U.S. companies and may at times have little or no investment in U.S. companies.

The Global Growth Fund invests primarily in equity securities of both U.S. and non‑U.S. companies with medium to large market capitalizations (i.e., those typically with market capitalizations in excess of U.S. $5 billion at the time of purchase). Equity
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securities in which the Global Growth Fund may invest include common stocks, preferred stocks, depositary shares and receipts, rights, warrants and ETFs. Under normal market conditions, the Global Growth Fund will invest at least 40% of its total assets at the time of purchase in non‑U.S. companies. The Global Growth Fund invests in developed markets and emerging markets. The Global Growth Fund will typically own 35 to 45 companies in its portfolio. Under normal market conditions, the Global Growth Fund will maintain investments in at least three countries including the United States.

In determining whether a company is a U.S. or non‑U.S. company, the Advisor considers a number of factors, including the company’s jurisdiction of incorporation or organization, the location of the company’s corporate or operational headquarters or principal place of business, the location of principal trading market for the company’s common stock, the location(s) of a majority of the company’s assets or production of its goods and services, and the locations of the primary sources of the company’s revenues or profits. The International Growth Fund and Global Growth Fund will generally invest in companies with medium and larger market capitalizations (i.e., more than U.S. $5 billion at the time of purchase).

The Advisor seeks to identify companies to which the Advisor assigns a conviction weighting, which takes into account the company’s long‑term appreciation potential as adjusted for the risk of possible disappointment. In evaluating potential investments, the Advisor considers companies with growth characteristics that the Advisor believes are likely to benefit from current macro‑economic and global trends and possess sustainable competitive advantages. The Advisor’s investment process involves a simultaneous assessment of both top‑down and bottom‑up factors. The objective of the Advisor’s top-down analysis is to identify trends in economic and business developments and to understand the economic and currency impacts in the countries where the companies are doing business. With respect to its bottom‑up research, the Advisor utilizes both qualitative analysis as well as quantitative screens to select the best companies for the portfolios. With respect to quantitative screens, the Advisor primarily seeks companies that are growing faster and are more profitable than their peers. The Advisor also checks to ensure that a company meets its strict quality criteria including conservative accounting and balance sheet strength. The Advisor seeks to manage risk through the application of valuation analysis, an emphasis on quality and thoughtful diversification based on sector, country, and region.

The Advisor believes that environmental, social and governance (ESG) factors can affect investment returns. The Advisor believes that well-run companies are good corporate citizens that embrace environmental stewardship and have proper governance. The Advisor seeks to minimize negative outcomes by understanding pertinent ESG topics that are relevant to individual companies that are being considered for investment in the Fund. Examples include, but are not limited to, corporate governance structure, climate change, supply chain integrity, labor practices and human resource management.

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The Advisor will typically sell or reduce a position to mitigate specific risk, to take advantage of better opportunities, to avoid country risks, when the Advisor believes that valuations are high relative to the company’s fundamentals, or when operational performance does not meet expectations.

Principal Risks

The main risks of investing in each of the Funds are:

Stock Market Risks
Equity security prices vary and may fall, thus reducing the value of a Fund’s investments. Certain stocks selected for a Fund’s portfolio may decline in value more than the overall stock market. U.S. and international markets have recently experienced extreme price volatility and reduced liquidity. As a result, many of the above risks may be increased. Continuing market problems may have adverse effects on the Funds.

Value-Style Investing Risks (Small/Mid Cap Value Fund and SmallCap Value Fund only)
Because the Small/Mid Cap Value Fund and SmallCap Value Fund focus on value-style stocks, the Funds’ performance may at times be worse than the performance of funds that focus on other types of stocks or that have a different investment style. Value style investing may go out of favor with investors, negatively impacting a Fund’s growth and performance. Value stocks may also fail to appreciate as much as anticipated, and their intrinsic value may not be recognized by the broader market.

Growth-Style Investing Risks (MidCap Fund, Small/Mid Cap Growth Fund, International Growth Fund and Global Growth Fund only)
Different types of stocks tend to shift into and out of favor with stock market investors depending on market and economic conditions. Because the MidCap Fund, Small/Mid Cap Growth Fund, International Growth Fund and Global Growth Fund focus on growth-style stocks, the Funds’ performance may at times be better or worse than the performance of funds that focus on other types of stocks or that have a different investment style. Growth stocks are often characterized by high price-to-earnings ratios, which may be more volatile than stocks with lower price-to-earnings ratios.

Limited Holdings Risks (International Growth Fund and Global Growth Fund)
Although they are diversified, the International Growth Fund and Global Growth Fund may have a relatively high percentage of assets in a smaller number of issuers and may have fewer holdings than other mutual funds. As a result, a decline in the value of an investment in a single issuer could cause a Fund’s overall value to decline to a greater degree than if the Fund held a more diverse portfolio.

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Management Risks
The Advisor’s judgment about the attractiveness, value and potential appreciation of particular companies’ stocks may prove to be incorrect. Such errors could result in a negative return to a Fund and a loss to you.

Equity Securities Risks
Equity securities may experience sudden, unpredictable drops in value or long periods of decline in value. This change may occur because of factors that affect the securities markets in general, such as adverse changes in economic conditions, the general outlook for corporate earnings, interest rates or investor sentiment. Equity securities may also lose value because of factors affecting an entire industry or sector, such as increases in production costs, or factors directly related to a specific company, such as decisions made by its management.

Common Stock Risks
Common stocks are susceptible to general stock market fluctuations and to volatile increases and decreases in value as market confidence in and perceptions of their issuers change. These investor perceptions are based on various and unpredictable factors including: expectations regarding government, economic, monetary and fiscal policies; inflation and interest rates; economic expansion or contraction; and global or regional political, economic and banking crises. Holders of common stocks are generally subject to greater risk than holders of preferred stocks and debt obligations of the same issuer because common stockholders generally have inferior rights to receive payments from issuers in comparison with the rights of preferred stockholders, bondholders and other creditors.

ETF Risks (International Growth Fund and Global Growth Fund only)
The price of an ETF can fluctuate within a wide range, and a Fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. In addition, ETFs are subject to risks that the market price of ETF shares may trade at a discount to their NAV, an active trading market for ETF shares may not develop or be maintained, or trading of ETF shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are de-listed from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally. Additionally, a Fund will bear its proportionate share of an ETF’s fees and expenses (including management fees, administration fees and custodian fees) in addition to the fees and expenses of the Fund.

Currency Risks (International Growth Fund and Global Growth Fund only)
The value of foreign investments held by the International Growth Fund and Global Growth Fund may be significantly affected by changes in foreign currency exchange rates. Generally, when the U.S. dollar rises in value against a foreign currency, an investment in that foreign currency loses value because it is worth fewer U.S. dollars. The foreign currency exchange market can be highly volatile for a variety of reasons. For example, changes in monetary policy, macro-economic factors, currency conversion
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expenses, restrictions, exchange control regulation, devaluation and political developments may have a significant impact on the value of any investments denominated in that currency.

Medium and Large Market Capitalization Risks (International Growth Fund and Global Growth Fund only)
Stocks of companies with certain market capitalizations may perform differently from the equities markets generally. The Funds’ investments will focus on companies with medium and large market capitalizations. At times, medium capitalization and large capitalization stocks may underperform as compared to small capitalization stocks, and vice versa. Larger, more established companies may be unable to respond to new competitive challenges such as changes in consumer tastes or innovative smaller competitors. Moreover, medium capitalization stocks may perform differently from large capitalization stocks, as medium capitalization stocks may be less liquid and more volatile than large capitalization stocks.

Mid-Market Capitalization Risks (MidCap Fund only)
The Fund invests primarily in mid-capitalization stocks, which are often more volatile and less liquid than investments in larger companies. The frequency and volume of trading in securities of mid-size companies may be substantially less than is typical of larger companies. Therefore, the securities of mid-size companies may be subject to greater and more abrupt price fluctuations. In addition, mid-size companies may lack the management experience, financial resources and product diversification of larger companies, making them more susceptible to market pressures and business failure. You should expect that the value of the Fund’s shares will be more volatile than the value of shares in a fund that invests primarily in large-capitalization companies.

Smaller Market Capitalization Risks (Small/Mid Cap Growth Fund, Small/Mid Cap Value Fund and SmallCap Value Fund only)
Stocks of companies with small and medium market capitalizations involve a higher degree of risk than investments in the broad-based equities market. Small- to mid-capitalization stocks are often more volatile and less liquid than investments in larger companies, and are more likely to be adversely affected by poor economic or market conditions. The frequency and volume of trading in securities of smaller companies may be substantially less than is typical of larger companies. Therefore, the securities of small- to mid-capitalization companies may be subject to greater and more abrupt price fluctuations. In addition, small- to mid-capitalization companies may lack the management experience, financial resources and product diversification of larger companies, making them more susceptible to market pressures and business failure. A significant percentage of the outstanding shares of a smaller company may also be held by management, which could cause management to have greater influence over actions requiring shareholder approval. The risks of investing in smaller companies generally increase as the size of the companies decreases.

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Financial Sector Risks (Small/Mid Cap Value Fund and SmallCap Value Fund only)
A Fund may invest a relatively large percentage of its assets in the financial sector and, therefore, a Fund’s performance may be adversely affected by volatility in financial and credit markets. Financial services companies (e.g., banks and insurance companies) are subject to extensive government regulation, interest rate risk, credit losses and price competition, among other factors. In recent years, the financial sector has been significantly impacted by bankruptcies and consolidations of major financial firms. These events may continue to have a significant negative impact on the valuations and stock prices of companies in this sector.

Foreign Securities Risks
Securities of foreign issuers and ADRs are subject to certain inherent risks, such as political or economic instability of the country of issue, the difficulty of predicting international trade patterns and the possibility of imposition of exchange controls. Such securities may also be subject to greater fluctuations in price than securities of domestic corporations. In addition, there may be less publicly available information about a foreign company than about a domestic company. Foreign companies generally are subject to different accounting, auditing and financial reporting standards than those applicable to domestic companies. With respect to certain foreign countries, there is a possibility of expropriation or confiscatory taxation, or diplomatic developments, which could affect investments in those countries. These risks are more pronounced in emerging market countries.

The United Kingdom (UK) withdrew from the European Union (EU) on January 31, 2020 following a June 2016 referendum referred to as “Brexit.” Although the UK and EU agreed to a trade deal in December 2020, certain post-EU arrangements, such as those relating to the offering of cross-border financial services and sharing of cross-border data, have yet to be reached and the EU’s willingness to grant equivalency to the UK remains uncertain. There is significant market uncertainty regarding Brexit’s ramifications, and the range of possible political, regulatory, economic and market outcomes is difficult to predict. The uncertainty surrounding the UK’s economy, and its legal, political, and economic relationship with the remaining member states of the EU, may cause considerable disruption in securities markets, including decreased liquidity and increased volatility, as well as currency fluctuations in the British pound’s exchange rate against the U.S. dollar.

Emerging Market Risks (International Growth Fund and Global Growth Fund only)
Investments in emerging markets can involve risks in addition to and greater than those generally associated with investing in more developed foreign markets. The extent of economic development, political stability, market depth, infrastructure, capitalization, and regulatory oversight can be less than in more developed markets. Emerging market economies can be subject to greater social, economic, regulatory and political uncertainties, including trading suspensions or stock market closures. The frequency, availability and quality of financial information about investments in emerging markets varies. Shareholders have limited rights and few practical remedies in emerging markets
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and the ability of U.S. authorities to bring enforcement actions in emerging markets may be limited. All of these factors can make emerging market securities more volatile and potentially less liquid than securities issued in more developed markets.

Region, Country, Sector Risks (International Growth Fund and Global Growth Fund only)
A particular Fund may invest a higher percentage of its total assets in a particular country, region or sector of worldwide markets. In such a case, changes affecting that particular country, region or sector may have a significant impact on a Fund’s overall portfolio.

Valuation Risks (International Growth Fund and Global Growth Fund only)
When pricing foreign equity securities held by the International Growth Fund and Global Growth Fund, an evaluated adjustment factor provided by the fair value pricing service approved by the Board will generally be applied to the prices of such securities. The use of an evaluated adjustment factor in such instances is intended to price each such security at its fair value at the time a Fund calculates its NAV by estimating the impact of market fluctuation or movement on a security’s value if its local market were still open for trading alongside the U.S. markets. The prices of such securities, as modified by the evaluated adjustment factor, may be different from the prices used by other mutual funds or from the prices at which such securities are actually bought and sold. In addition, the prices of such securities may be subject to frequent and significant change, and will vary depending on the information that is available.

Small Fund Risk (Small/Mid Cap Growth Fund, Small/Mid Cap Value Fund and SmallCap Value Fund)
There can be no assurance that the Small/Mid Cap Growth Fund, Small/Mid Cap Value Fund or SmallCap Value Fund will grow to or maintain an economically viable size, in which case the Board of Directors may determine to liquidate the Fund. Liquidation of a Fund can be initiated without shareholder approval by the Board of Directors if it determines that liquidation is in the best interests of the Fund. While such risk may apply to funds of any size, such risk is heightened in funds with fewer assets under management.
ESG Considerations Risk (Small/Mid Cap Value Fund, SmallCap Value Fund, International Growth Fund and Global Growth Fund)
Consideration of ESG factors in the investment process may cause the Advisor to forgo opportunities to invest in certain companies or to gain exposure to certain industries or regions and, therefore, carries the risk that, under certain market conditions, the Fund may underperform funds that do not consider such factors. There are not universally accepted ESG factors and the Advisor will consider them in its discretion.

Recent Market Events
U.S. and international markets have experienced volatility in recent months and years due to a number of economic, political and global macro factors, including the impact of the coronavirus (COVID‑19) global pandemic, which has resulted in a public health
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crisis, business interruptions, growth concerns in the U.S. and overseas, layoffs, rising unemployment claims, changed travel and social behaviors and reduced consumer spending. The effects of COVID‑19 have led to a substantial economic downturn or recession in the U.S. and global economies, the recovery from which is uncertain and may last for an extended period of time. Uncertainties regarding interest rates, political events, rising government debt in the U.S. and trade tensions have also contributed to market volatility. Global economies and financial markets are increasingly interconnected, which increases the possibility that conditions in one country or region might adversely impact issuers in a different country or region. In particular, a rise in protectionist trade policies, slowing global economic growth, risks associated with epidemic and pandemic diseases, risks associated with the United Kingdom’s departure from the European Union, the risk of trade disputes, and the possibility of changes to some international trade agreements, could affect the economies of many nations, including the United States, in ways that cannot necessarily be foreseen at the present time. Continuing market volatility as a result of recent market conditions or other events may have adverse effects on your account.

Portfolio Holdings Disclosure Policy

A description of the Funds’ policies and procedures with respect to the disclosure of the Funds’ portfolio holdings is available in the Statement of Additional Information (“SAI”) and on the Company’s website at www.bairdfunds.com.

Note Regarding Percentage Limitations
Whenever an investment objective, policy or strategy of the Funds set forth in this Prospectus or the Funds’ SAI states a maximum (or minimum) percentage of a Fund’s assets that may be invested in any type of security or asset class, the percentage is determined immediately after the Fund’s acquisition of that investment, except with respect to percentage limitations on temporary borrowing and illiquid investments. Accordingly, any later increase or decrease resulting from a change in the market value of a security or in a Fund’s assets (e.g., due to net sales or redemptions of Fund shares) will not cause the Fund to violate a percentage limitation. As a result, due to market fluctuations, cash inflows or outflows or other factors, a Fund may exceed such percentage limitations from time to time.

Who May Want to Invest in the Funds

The Funds may be appropriate for investors who:

Wish to invest for the long-term;
Want to realize capital appreciation on investments in equity securities;
Are looking for an equity component to their portfolio;
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Are willing to assume the risk of investing in equity securities; and
Have long-term goals such as planning for retirement.

The Funds are not appropriate for investors who have short-term financial goals.

Before investing in a Fund, you should carefully consider:

Your investment goals;
The amount of time you are willing to leave your money invested; and
The amount of risk you are willing to take.

Management of the Funds

The Advisor

Robert W. Baird & Co. Incorporated (the “Advisor”), subject to the general supervision of the Company’s Board of Directors (the “Board”), serves as the Company’s investment advisor and administers the Company’s business affairs. The Advisor is responsible for the day-to-day management, including making investment decisions and buying and selling securities, of the MidCap Fund, Small/Mid Cap Growth Fund, Small/Mid Cap Value Fund, SmallCap Value Fund, International Growth Fund and Global Growth Fund in accordance with each Fund’s investment objective and policies. Pursuant to an Investment Advisory Agreement between the Company and the Advisor, for its services, the Advisor receives an annual fee of:

0.75% of the average daily net assets of the MidCap Fund, Small/Mid Cap Growth Fund, Small/Mid Cap Value Fund, International Growth Fund and Global Growth Fund; and

0.85% of the average daily net assets of the SmallCap Value Fund.

The advisory fee is accrued daily and paid monthly.

The Advisor has contractually agreed to waive its fees and/or reimburse each Fund’s total annual fund operating expenses at least through April 30, 2022 to the extent necessary to ensure that the total operating expenses, including the fees and expenses incurred by a Fund in connection with the Fund’s investments in other investment companies (to the extent, in the aggregate, such fees and expenses on an annual basis exceed 0.0049% of a Fund’s average daily net assets) and interest expense, but excluding taxes, brokerage commissions and extraordinary expenses, do not exceed an annual rate of:
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1.10% of the Investor Class’s average daily net assets and 0.85% of the Institutional Class’s average daily net assets for the MidCap Fund;

1.10% of the Investor Class’s average daily net assets and 0.85% of the Institutional Class’s average daily net assets for the Small/Mid Cap Growth Fund;

1.10% of the Investor Class’s average daily net assets and 0.85% of the Institutional Class’s average daily net assets for the Small/Mid Cap Value Fund;

1.20% of the Investor Class’s average daily net assets and 0.95% of the Institutional Class’s average daily net assets for the SmallCap Value Fund;

1.05% of the Investor Class’s average daily net assets and 0.80% of the Institutional Class’s average daily net assets for the International Growth Fund; and

1.05% of the Investor Class’s average daily net assets and 0.80% of the Institutional Class’s average daily net assets for the Global Growth Fund.

The Advisor can recoup any expenses or fees of the Funds it has waived or reimbursed within a three-year period provided that the aggregate amount actually paid by a Fund toward the operating expenses in any month (taking into account the recoupment) will not cause the Fund to exceed the lesser of: (1) the expense caps in place at the time of the fee waiver and/or expense reimbursement; or (2) the expense cap in place at the time of the recoupment.

Any waivers or reimbursements have the effect of lowering the overall expense ratio for the applicable Fund and increasing the overall return to investors at the time any such amounts are waived and/or reimbursed.

After expense waivers, the net advisory fee paid to the Advisor for the fiscal year ended December 31, 2020 was equal to 0.75% of the MidCap Fund’s average daily net assets, 0.17% of the Small/Mid Cap Growth Fund’s average daily net assets, 0.00% of the Small/Mid Cap Value Fund’s average daily net assets, 0.16% of the SmallCap Value Fund’s average daily net assets, 0.65% of the International Growth Fund’s average daily net assets and 0.51% of the Global Growth Fund’s average daily net assets.

Discussions regarding the basis for the Board’s approval of the investment advisory agreements with respect to the Funds are available in the Funds’ 2020 annual report.

The Advisor was founded in 1919 and has its main office at 777 East Wisconsin Avenue, Milwaukee, Wisconsin 53202. The Advisor provides investment management
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services for individuals and institutional clients including pension and profit sharing plans. As of December 31, 2020, the Advisor had approximately $173.5 billion in assets under discretionary management.

Portfolio Managers

MidCap Fund

Kenneth M. Hemauer, CFA
Ken co-manages the MidCap Fund. He is a Managing Director of the Advisor and a Senior Portfolio Manager for Baird Equity Asset Management. He joined Baird Equity Asset Management in 2001, after spending seven years as a Senior Analyst in the Equity Research Department of the Advisor. He received both a B.B.A. degree and an M.S. degree in Finance from the University of Wisconsin-Madison. He earned the Chartered Financial Analyst designation in 1995.

Charles F. Severson, CFA
Chuck co-manages the MidCap Fund. He is a Managing Director of the Advisor and a Senior Portfolio Manager for Baird Equity Asset Management. He joined the Advisor in 1987 as an Institutional Salesman. In 1991, Chuck joined Baird Equity Asset Management as a Portfolio Manager. He has a B.B.A. degree in Accounting and Finance and an M.S. degree in Finance from the University of Wisconsin-Madison. He earned the Chartered Financial Analyst designation in 1990.

Small/Mid Cap Growth Fund

Jonathan Good
Jonathan serves as the portfolio manager of the Small/Mid Cap Growth Fund. He is a Director of the Advisor and Portfolio Manager for Baird Equity Asset Management. Jonathan has over 19 years of investment experience and has been with Baird Equity Asset Management’s Growth team for 13 years. Before joining the Advisor, Jonathan worked at Gartmore Global Investments as an equity analyst for their Global Health Sciences Fund. Prior to Gartmore, he was at William Blair & Company as an equity research associate covering biotech, life sciences, diagnostics and orthopedics. Jonathan earned his B.S. degree in applied and biomedical sciences from the University of Pennsylvania and his MBA from the Kellogg School of Management at Northwestern University.

Small/Mid Cap Value Fund and SmallCap Value Fund

Michelle E. Stevens, CFA
Michelle is the portfolio manager for the Small/Mid Cap Value Fund and the SmallCap Value Fund and has managed each Fund since its inception. Michelle joined the
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Advisor in December 2011 as a Managing Director and is a Senior Portfolio Manager for Baird Equity Asset Management. From October 2008 to December 2011, Michelle was Principal and the Chief Investment Officer of Riazzi Asset Management. From June 2001 through September 2008, she was Principal, Portfolio Manager and Value Equity Chief Investment Officer at Transamerica Investment Management, LLC.

International Growth Fund and Global Growth Fund

Brian Beitner, Jesse Flores, Haicheng Li and Nathaniel Velarde co-manage the International Growth and Global Growth Funds. All members of the team share decision-making responsibilities for those Funds.

Brian Beitner, CFA
Brian serves as a portfolio manager of the International Growth and Global Growth Funds. Brian is a Managing Director of the Advisor and Partner of the Advisor’s Chautauqua Capital Management division. Brian has over 35 years of investment management experience. Brian joined the Advisor in January 2016. Prior to joining the Advisor, Brian served as Managing Partner and Chief Investment Officer of Chautauqua Capital Management, LLC, an asset management firm founded by Brian in 2009. From November 1998 to December 2008 he was a Portfolio Manager at Trust Company of the West. Brian received his undergraduate degree and his MBA from the University of Southern California and he is a CFA charterholder.

Jesse A. Flores, CFA
Jesse serves as a portfolio manager of the International Growth and Global Growth Funds. Jesse is a Director of the Advisor and Partner of the Advisor’s Chautauqua Capital Management division. He joined Chautauqua Capital upon earning his MBA. Before graduate school, Jesse was an investment analyst at Blavin & Company where he was a generalist responsible for both equity and high-yield debt securities. Additionally, he covered U.S. semiconductors and hardware as a research analyst at Lehman Brothers and Roth Capital Partners. Jesse has a bachelor’s degree from Cornell University (McMullen Dean’s Scholar, Rawlings Presidential Research Scholar) and an MBA from the Stanford Graduate School of Business. He is a CFA charterholder.

Haicheng Li, CFA
Haicheng serves as a portfolio manager of the International Growth and Global Growth Funds. Haicheng is a Director of the Advisor and Managing Partner of the Advisor’s Chautauqua Capital Management division. Prior to joining the Advisor in 2016, Haicheng worked 14 years as a senior vice president, senior analyst and portfolio manager at TCW Group with specific expertise in healthcare. Haicheng earned an MBA from Stanford, a master’s degree in biological and biomedical sciences from Harvard’s Graduate School of Arts and Sciences and a master’s degree in medical sciences from Harvard Medical School, where she was a research fellow. Haicheng graduated summa cum laude from Rutgers University and was awarded a prestigious Phi Beta Kappa key for academic achievement. Haicheng is a CFA charterholder.
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Nathaniel R. Velarde
Nate serves as a portfolio manager of the International Growth and Global Growth Funds. Nate is a Director of the Advisor and Partner of the Advisor’s Chautauqua Capital Management division. Prior to joining the Advisor in 2019, Nate was senior vice president, global equity analyst at PIMCO. Nate also spent 7 years at Nuveen Investments in the Tradewinds Global Investors and NWQ Investment Management divisions as managing director, senior equity analyst and director of research. Prior to Nuveen, Nate served as vice president, equity analyst at TCW Group primarily covering industrials, business services and basic materials. Nate earned a bachelor’s degree in economics and an MBA with concentrations in finance and strategic management from the University of Chicago, and a Master’s of Information and Data Science from the University of California - Berkeley.

The Funds’ SAI provides additional information about the portfolio managers, including other accounts managed, ownership of Fund shares and compensation.

Historical Performance Information for Similar Accounts

Small/Mid Cap Growth Composite

The following table sets forth the historical composite performance data for all advisory accounts that have investment objectives, policies, strategies and risks substantially similar to those of the Small/Mid Cap Growth Fund (the “Composite”). The Composite accounts are managed by Jonathan Good, the portfolio manager of the Small/Mid Cap Growth Fund, who was supported by analysts on the portfolio management team. The Composite includes all fully discretionary commission accounts that are fully invested in the small-to-mid cap growth investment strategy. The minimum account size for the composite is $100,000. As of December 31, 2020, the Composite consisted of two accounts.

PERFORMANCE OF THE COMPOSITE IS HISTORICAL AND DOES NOT REPRESENT THE FUTURE PERFORMANCE OF THE SMALL/MID CAP GROWTH FUND OR THE ADVISOR.

All returns presented were calculated on a total return basis and include all dividends and interest, accrued income, and realized and unrealized gains and losses and are net of transaction costs. Composite performance reflects the deduction of all management and other fees and expenses and any transaction costs. The methodology used to calculate average annual and calendar year total returns as presented in the following tables differs from the standards required by the SEC for calculation of performance for mutual funds. The Composite’s performance would have been lower than that shown if
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the accounts included in the Composite had been subject to the net annual operating expenses of the Fund’s Investor Class shares. The standard investment management fee schedule for accounts included in the Composite is 0.85% on the first $10 million, 0.70% on the next $40 million and 0.60% on assets in excess of $50 million. Actual investment advisory fees may vary.

Securities transactions are accounted for on the trade date and accrual accounting is utilized. Cash and cash equivalents are included in performance returns. The Composite’s returns are calculated on a time-weighted basis. The Composite is not subject to the diversification requirements, tax restrictions or investment limitations imposed on the Fund by the 1940 Act, or Subchapter M of the Code. Consequently, the performance results of the Composite could have been adversely affected if it had been regulated under the federal securities and tax laws.

Composite
Average Annual Total Returns
Periods ended
12/31/2020
Composite Net
Russell 2500®
Growth Index (1)
1 Year 44.61% 40.47%
5 Year 21.95% 18.68%
Since Inception 9/30/15 21.58% 18.55%

Composite
Calendar Year Total Returns
Period Ended Composite Net
Russell 2500®
Growth Index (1)
2020 44.61% 40.47%
2019 37.04% 32.65%
2018 0.21% -7.47%
2017 28.70% 24.46%
2016 5.59% 9.73%

(1)The Russell 2500® Growth Index measures the performance of those Russell 2500® companies with higher price-to-book ratios and higher forecasted growth values. When sorted by market capitalization, the Russell 2500® Index consists of all of the companies in the Russell 3000® Index, except for the 500 largest companies by market capitalization in that index. The Russell 3000® Index consists of the 3,000 largest U.S. domiciled publicly traded common stocks by market capitalization. The Russell 2500® Growth Index reflects no deduction for fees, expenses or taxes.

For a complete list and description of the Advisor’s composites, additional information regarding policies for valuing portfolios and calculating performance, contact the Advisor at 777 East Wisconsin Avenue, Milwaukee, WI 53202 or call 1-800-792-4011.
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Financial Highlights

The financial highlights tables are intended to help you understand each Fund’s financial performance for the past five fiscal years or the life of the Fund, as indicated in the tables below. Certain information reflects financial results for a single Fund share. The total returns presented in the table represent the rate that an investor would have earned or lost on an investment in the Fund for the stated periods (assuming reinvestment of all distributions). Information in the table for the fiscal years or periods ended December 31, 2020, 2019, 2018 and 2017 has been audited by Cohen & Company, Ltd., whose report, along with each Fund’s financial statements, is included in the Funds’ annual report, which is available upon request. Information in the table for the fiscal years or periods ended prior to December 31, 2017 was audited by a different public accounting firm.
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Baird MidCap Fund – Institutional Class
Year Ended December 31,
2020 2019 2018 2017 2016
Per Share Data:
Net asset value, beginning of year
$22.90  $17.72  $19.16  $15.80  $14.99 
Income from investment operations:
Net investment loss(1)
(0.08) (0.02) (0.03) (0.03) (0.02)
Net realized and unrealized gains (losses) on investments
7.99  6.44  (0.30) 4.28  0.83 
Total from investment operations
7.91  6.42  (0.33) 4.25  0.81 
Less distributions:
Distributions from net realized gains
(2.64) (1.24) (1.11) (0.89) — 
Total distributions
(2.64) (1.24) (1.11) (0.89) — 
Net asset value, end of year $28.17  $22.90  $17.72  $19.16  $15.80 
Total return 34.81  % 36.31  % (1.61) % 26.88  % 5.40  %
Supplemental data and ratios:
Net assets, end of year (millions)
$2,065.5  $1,825.8  $1,337.4  $1,279.6  $1,105.1 
Ratio of expenses to average net assets 0.82  % 0.82  % 0.81  % 0.83  % 0.82  %
Ratio of net investment loss to average net assets
(0.35) % (0.07) % (0.15) % (0.17) % (0.14) %
Portfolio turnover rate(2)
47  % 43  % 38  % 45  % 57  %
(1)Calculated using average shares outstanding during the year.
(2)Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable.
67


Baird MidCap Fund – Investor Class
Year Ended December 31,
2020 2019 2018 2017 2016
Per Share Data:
Net asset value, beginning of year
$21.53  $16.76  $18.23  $15.10  $14.36 
Income from investment operations:
Net investment loss(1)
(0.14) (0.07) (0.08) (0.07) (0.06)
Net realized and unrealized gains (losses) on investments
7.47  6.08  (0.28) 4.09  0.80 
Total from investment operations
7.33  6.01  (0.36) 4.02  0.74 
Less distributions:
Distributions from net realized gains
(2.64) (1.24) (1.11) (0.89) — 
Total distributions
(2.64) (1.24) (1.11) (0.89) — 
Net asset value, end of year $26.22  $21.53  $16.76  $18.23  $15.10 
Total return 34.32  % 35.94  % (1.86) % 26.61  % 5.08  %
Supplemental data and ratios:
Net assets, end of year (millions)
$200.3  $148.3  $95.5  $111.4  $137.2 
Ratio of expenses to average net assets 1.07  % 1.07  % 1.06  % 1.08  % 1.07  %
Ratio of net investment loss to average net assets
(0.60) % (0.32) % (0.40) % (0.42) % (0.39) %
Portfolio turnover rate(2)
47  % 43  % 38  % 45  % 57  %

(1)Calculated using average shares outstanding during the year.
(2)Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable.
68


Baird Small/Mid Cap Growth Fund – Institutional Class
Year Ended December 31, Period Ended December 31,
2020 2019
2018(1)
Per Share Data:
Net asset value, beginning of period
$ 12.26  $ 8.95  $ 10.00 
Income from investment operations:
Net investment loss(2)
(0.06) (0.03) (0.00  )
(3)
Net realized and unrealized gains (losses) on investments
5.52  3.34  (1.05)
Total from investment operations
5.46  3.31  (1.05)
Less distributions:
Distributions from net realized gains
(0.33) —  — 
Total distributions
(0.33) —  — 
Net asset value, end of period $ 17.39  $ 12.26  $ 8.95 
Total return 44.57  % 36.98  % (10.50) %
(4)
Supplemental data and ratios:
Net assets, end of period (millions)
$ 51.2  $ 18.3  $ 7.3 
Ratio of expenses to average net assets
0.85  % 0.85  % 0.85  %
(5)
Ratio of expenses to average net assets (before waivers)
1.43  % 2.10  % 3.88  %
(5)
Ratio of net investment loss to average net assets
(0.41) % (0.25) % (0.03) %
(5)
Ratio of net investment loss to average net assets (before waivers)
(0.99) % (1.50) % (3.06) %
(5)
Portfolio turnover rate(6)
65  % 60  % %
(4)

(1)Inception was close of business on October 31, 2018.
(2)Calculated using average shares outstanding during the period.
(3)Amount is less than $0.005.
(4)Not annualized.
(5)Annualized.
(6)Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable.
69


Baird Small/Mid Cap Growth Fund – Investor Class
Year Ended December 31, Period Ended December 31,
2020 2019
2018(1)
Per Share Data:
Net asset value, beginning of period
$ 12.21  $ 8.94  $ 10.00 
Income from investment operations:
Net investment loss(2)
(0.09) (0.06) (0.00  )
(3)
Net realized and unrealized gains (losses) on investments
5.46  3.33  (1.06)
Total from investment operations
5.37  3.27  (1.06)
Less distributions:
Distributions from net realized gains
(0.33) —  — 
Total distributions
(0.33) —  — 
Net asset value, end of period $ 17.25  $ 12.21  $ 8.94 
Total return 43.89  % 36.69  % (10.60) %
(4)
Supplemental data and ratios:
Net assets, end of period (thousands)
$ 661.0  $ 287.3  $ 8.9 
Ratio of expenses to average net assets
1.10  % 1.10  % 1.10  %
(5)
Ratio of expenses to average net assets (before waivers)
1.68  % 2.35  % 4.13  %
(5)
Ratio of net investment loss to average net assets
(0.66) % (0.50) % (0.28) %
(5)
Ratio of net investment loss to average net assets (before waivers)
(1.24) % (1.75) % (3.31) %
(5)
Portfolio turnover rate(6)
65  % 60  % %
(4)

(1)Inception was close of business on October 31, 2018.
(2)Calculated using average shares outstanding during the period.
(3)Amount is less than $0.005.
(4)Not annualized.
(5)Annualized.
(6)Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable.

70


Baird Small/Mid Cap Value Fund – Institutional Class
Year Ended December 31,
2020 2019 2018 2017 2016
Per Share Data:
Net asset value, beginning of year $12.32  $10.51  $12.43  $10.29  $9.52 
Income from investment operations:
Net investment income(1)
0.08  0.12  0.04  0.07  0.13 
Net realized and unrealized gains (losses) on investments
(0.02)
(5)
1.80  (1.92) 2.14  0.72 
Total from investment operations
0.06  1.92  (1.88) 2.21  0.85 
Less distributions:
Distributions from net investment income
(0.09) (0.11) (0.04) (0.07) (0.08)
Distributions from net realized gains
—  —  (0.00  )
(2)
(0.00  )
(2)
— 
Total distributions
(0.09) (0.11) (0.04) (0.07) (0.08)
Net asset value, end of year $12.29  $12.32  $10.51  $12.43  $10.29 
Total return 0.48  % 18.23  % (15.11) % 21.48  % 8.91  %
Supplemental data and ratios:
Net assets, end of year (millions) $23.0  $24.3  $17.1  $16.9  $11.9 
Ratio of expenses to average net assets
0.85  % 0.85  % 0.94  %
(3)
0.95  % 0.95  %
Ratio of expenses to average net assets (before waivers)
1.65  % 1.59  % 1.75  % 1.91  % 2.86  %
Ratio of net investment income to average net assets
0.78  % 1.04  % 0.34  % 0.62  % 1.35  %
Ratio of net investment income (loss) to average net assets (before waivers)
(0.02) % 0.30  % (0.47) % (0.34) % (0.56) %
Portfolio turnover rate(4)
84  % 37  % 34  % 60  % 38  %

(1)Calculated using average shares outstanding during the year.
(2)Amount is less than $0.005.
(3)Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 0.85%. Prior to December 1, 2018, the expense cap was 0.95%.
(4)Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable.
(5)Due to timing of capital share transactions, the per share amount of net realized and unrealized gain (loss) on investments varies from the amounts shown in the statement of operations in the Fund’s annual report.
71


Baird Small/Mid Cap Value Fund – Investor Class
Year Ended December 31,
2020 2019 2018 2017 2016
Per Share Data:
Net asset value, beginning of year $12.27  $10.48  $12.40  $10.28  $9.52 
Income from investment operations:
Net investment income(1)
0.06  0.09  0.01  0.04  0.11 
Net realized and unrealized gains (losses) on investments
(0.04)
(5)
1.78  (1.90) 2.13  0.71 
Total from investment operations
0.02  1.87  (1.89) 2.17  0.82 
Less distributions:
Distributions from net investment income
(0.01) (0.08) (0.03) (0.05) (0.06)
Distributions from net realized gains
—  —  (0.00  )
(2)
(0.00  )
(2)
— 
Total distributions
(0.01) (0.08) (0.03) (0.05) (0.06)
Net asset value, end of year $12.28  $12.27  $10.48  $12.40  $10.28 
Total return 0.15  % 17.86  % (15.25) % 21.08  % 8.64  %
Supplemental data and ratios:
Net assets, end of year (thousands) $79.1  $560.4  $341.5  $86.1  $53.2 
Ratio of expenses to average net assets
1.10  % 1.10  % 1.19  %
(3)
1.20  % 1.20  %
Ratio of expenses to average net assets (before waivers)
1.90  % 1.84  % 2.00  % 2.16  % 3.11  %
Ratio of net investment income to average net assets
0.53  % 0.79  % 0.09  % 0.37  % 1.10  %
Ratio of net investment income (loss) to average net assets (before waivers)
(0.27) % 0.05  % (0.72) % (0.59) % (0.81) %
Portfolio turnover rate(4)
84  % 37  % 34  % 60  % 38  %

(1)Calculated using average shares outstanding during the year.
(2)Amount is less than $0.005.
(3)Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 1.10%. Prior to December 1, 2018, the expense cap was 1.20%.
(4)Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable.
(5)Due to timing of capital share transactions, the per share amount of net realized and unrealized gain (loss) on investments varies from the amounts shown in the statement of operations in the Fund’s annual report.

72


Baird SmallCap Value Fund – Institutional Class
Year Ended December 31,
2020 2019 2018 2017 2016
Per Share Data:
Net asset value, beginning of year
$15.96  $13.58  $16.99  $14.83  $13.03 
Income from investment operations:
Net investment income(1)
0.03  0.13  0.05  0.09  0.21 
Net realized and unrealized gains (losses) on investments
0.43 
(4)
2.36  (2.85) 2.59  1.76 
Total from investment operations
0.46  2.49  (2.80) 2.68  1.97 
Less distributions:
Distributions from net investment income
(0.03) (0.11) (0.06) (0.09) (0.17)
Distributions from net realized gains
(0.83) —  (0.55) (0.43) — 
Total distributions
(0.86) (0.11) (0.61) (0.52) (0.17)
Net asset value, end of year $15.56  $15.96  $13.58  $16.99  $14.83 
Total return 18.05  % 18.40  % (16.45) % 18.05  % 15.11  %
Supplemental data and ratios:
Net assets, end of year (millions)
$30.4  $33.0  $28.8  $33.6  $28.2 
Ratio of expenses to average net assets 0.95  % 0.95  % 1.00  %
(2)
1.00  % 1.00  %
Ratio of expenses to average net assets (before waivers)
1.64  % 1.44  % 1.38  % 1.35  % 1.43  %
Ratio of net investment income to average net assets
0.21  % 0.87  % 0.29  % 0.61  % 1.58  %
Ratio of net investment income (loss) to average net assets (before waivers)
-0.48  % 0.38  % (0.09) % 0.26  % 1.15  %
Portfolio turnover rate(3)
61  % 55  % 36  % 30  % 49  %

(1)Calculated using average shares outstanding during the year.
(2)Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 0.95%. Prior to December 1, 2018, the expense cap was 1.00%.
(3)Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable.
(4)Due to timing of capital share transactions, the per share amount of net realized and unrealized gain (loss) on investments varies from the amounts shown in the statement of operations in the Fund’s annual report.


73


Baird SmallCap Value Fund – Investor Class
Year Ended December 31,
2020 2019 2018 2017 2016
Per Share Data:
Net asset value, beginning of year
$15.97  $13.58  $16.97  $14.81  $12.99 
Income from investment operations:
Net investment income (loss)(1)
(0.01) 0.09  0.01  0.06  0.18 
Net realized and unrealized gains (losses) on investments
0.42 
(4)
2.37  (2.85) 2.58  1.75 
Total from investment operations
0.41  2.46  (2.84) 2.64  1.93 
Less distributions:
Distributions from net investment income
(0.03) (0.07) —  (0.05) (0.11)
Distributions from net realized gains
(0.83) —  (0.55) (0.43) — 
Total distributions
(0.86) (0.07) (0.55) (0.48) (0.11)
Net asset value, end of year $15.52  $15.97  $13.58  $16.97  $14.81 
Total return 2.54  % 18.19  % (16.71) % 17.78  % 14.84  %
Supplemental data and ratios:
Net assets, end of year (millions)
$0.3  $0.9  $0.8  $2.6  $2.6 
Ratio of expenses to average net assets 1.20  % 1.20  % 1.25  %
(2)
1.25  % 1.25  %
Ratio of expenses to average net assets (before waivers)
1.89  % 1.69  % 1.63  % 1.60  % 1.68  %
Ratio of net investment income (loss) to average net assets -0.04  % 0.62  % 0.04  % 0.36  % 1.33  %
Ratio of net investment income (loss) to average net assets (before waivers)
-0.73  % 0.13  % (0.34) % 0.01  % 0.90  %
Portfolio turnover rate(3)
61  % 55  % 36  % 30  % 49  %

(1)Calculated using average shares outstanding during the year.
(2)Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 1.20%. Prior to December 1, 2018, the expense cap was 1.25%.
(3)Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the classes of shares issued and excludes in-kind transactions, where applicable.
(4)Due to timing of capital share transactions, the per share amount of net realized and unrealized gain (loss) on investments varies from the amounts shown in the statement of operations in the Fund’s annual report.

74


Chautauqua International Growth Fund – Institutional Class
Year Ended December 31,
Period Ended
December 31, 2016(1)
2020 2019 2018 2017
Per Share Data:
Net asset value, beginning of period
$12.62  $10.17