Morningstar Rating

Fund Research and Analysis

by Sonya Morris, CFA
Baird Aggregate Bond is straightforward and effective.

This fund doesn't try to do anything fancy. The veteran team running the fund, led by chief investment officer Mary Ellen Stanek, applies a fairly standard strategy for a core bond fund. While keeping the fund's duration (a measure of interest-rate sensitivity) pegged to the Barclays Aggregate Bond Index, it modestly emphasizes those sectors that it believes will outperform over the intermediate and long term.  Read more 

Kudos

Experienced management.
Consistent and competitive long-term track record.
Low expenses.
Above-average yield. Read more 

Risks

The fund's duration-neutral strategy may moderate returns and keep management from shooting the lights out under certain market conditions.
The fund's high-quality tilt can make it a bit more vulnerable to rising interest rates. Read more 

Strategy

Mary Ellen Stanek and her management team set out to consistently beat the fund's benchmark, the Barclays Capital U.S. Aggregate Index. They peg the fund's duration to that of the benchmark and continuously maintain a duration-neutral interest-rate position.  Read more 

Management

As managing director and chief investment officer of Baird Advisors, Mary Ellen Stanek leads the team of six seasoned portfolio managers at this intermediate-term bond offering. Stanek, formerly president and chief executive officer of Firstar Investment Research & Management (Firstar Corp.  Read more 

Inside Scoop

Now available at a $25,000 minimum, this offering is run by experienced managers who follow a straightforward, duration-neutral approach. The strategy has produced consistently solid results over time, and for a fee, the institutional share class is available at an even lower $10,000 minimum purchase on several fund platforms.  Read more 

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