Baird Funds N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09997

Baird Funds, Inc.

(Exact name of Registrant as specified in charter)

777 East Wisconsin Avenue

Milwaukee, WI 53202

(Address of principal executive offices) (Zip code)

Andrew D. Ketter

Robert W. Baird & Co. Incorporated

777 East Wisconsin Avenue

Milwaukee, WI 53202

(Name and address of agent for service)

1-866-442-2473

Registrant's telephone number, including area code

Date of fiscal year end: December 31

Date of reporting period:  December 31, 2020

Item 1. Reports to Stockholders.

(a)  Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).

Annual Report –

Baird Funds

December 31, 2020

Taxable Bond Funds

Baird Ultra Short Bond Fund	Baird Aggregate Bond Fund
Baird Short-Term Bond Fund	Baird Core Plus Bond Fund

  Baird Intermediate Bond Fund

Municipal Bond Funds

  Baird Short-Term Municipal Bond Fund

  Baird Strategic Municipal Bond Fund

  Baird Quality Intermediate Municipal Bond Fund

  Baird Core Intermediate Municipal Bond Fund

  Baird Municipal Bond Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Funds or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Funds’ website (www.bairdassetmanagement.com/baird-funds/funds-and-performance#Literature) and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary or, if you are a direct investor, by calling 1-866-442-2473, or sending an e-mail request to prospectus@bairdfunds.com.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with a Fund, you can call 1-866-442-2473 or send an e-mail request to prospectus@bairdfunds.com to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Funds held in your account if you invest through your financial intermediary or all Funds held with the fund complex if you invest directly with the Funds.

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Table of Contents

Letter to Shareholders	1
2020 Bond Market Overview	2
Baird Ultra Short Bond Fund	7
Baird Short-Term Bond Fund	33
Baird Intermediate Bond Fund	62
Baird Aggregate Bond Fund	89
Baird Core Plus Bond Fund	144
2020 Municipal Bond Market Overview	206
Baird Short-Term Municipal Bond Fund	210
Baird Strategic Municipal Bond Fund	298
Baird Quality Intermediate Municipal Bond Fund	329
Baird Core Intermediate Municipal Bond Fund	371
Baird Municipal Bond Fund	431
Additional Information on Fund Expenses	450
Statements of Assets and Liabilities	452
Statements of Operations	456
Statements of Changes in Net Assets	460
Financial Highlights	470
Notes to the Financial Statements	490
Report of Independent Registered Public Accounting Firm	509
Directors and Officers	510
Disclosure Regarding the Board of Directors’ Approval
of the Investment Advisory Agreement for Baird Bond Funds	513
Additional Information	517
Privacy Notice	A-1

This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Cautionary Note on Analyses, Opinions and Outlooks:  In this report we offer analyses and opinions on the performance of individual securities, companies, industries, sectors, markets, interest rates, asset classes, types of fixed income securities and governmental policies, including predictions, forecasts and outlooks regarding possible future events.  These can generally be identified as such because the context of the statements may include such words as “believe,” “should,” “will,” “expects,” “anticipates,” “hopes” and words of similar effect.  These statements reflect the portfolio managers’ good faith beliefs and judgments and involve risks and uncertainties, including the risk that the portfolio managers’ analyses, opinions and outlooks are or will prove to be inaccurate.  It is inherently difficult to correctly assess and explain the performance of particular securities, sectors, markets, interest rate movements, governmental actions or general economic trends and conditions, and many unforeseen factors contribute to the performance of Baird Funds.  Investors are, therefore, cautioned not to place undue reliance on subjective judgments contained in this report.

 

Baird Funds

1-866-442-2473

www.bairdfunds.com

February 26, 2021

Dear Shareholder,

After the challenges we have all endured over the past year, our Baird Advisors team hopes this letter finds you, your families and your loved ones healthy and safe. To say that 2020 was a challenging year for the financial markets and investors truly understates what we have all experienced. The impact of the coronavirus on our investors’ lives, families, businesses and communities felt at times overwhelming, but you all persevered and we are honored to have been your fixed income manager during this period. For our Baird Advisors team, this year has reminded us of the importance of looking out for each other and remaining laser focused on delivering on your financial needs. We have spent decades building and refining our all-weather strategies and I am extremely proud of our team for navigating the unprecedented weather in 2020. We delivered competitive returns but also peace of mind that your bond portfolio was doing what it was supposed to do. In addition, having a talented, well-respected municipal bond team embedded with our taxable team remains a significant competitive advantage. That expertise and talent was a contributor to the Baird Bond Funds’ strong performance in 2020 across our entire lineup.

Amidst this extremely volatile and challenged environment, the Baird Bond Funds delivered very strong absolute performance and nearly all materially exceeded their benchmarks. While the Baird Quality Intermediate Municipal Bond Fund modestly lagged its benchmark, it continued to achieve its wealth preservation goal, remaining one of if not the highest quality bond fund available in the market. All of the Baird Bond Funds’ long-term track records remain very competitive and we believe the portfolios are positioned well as we enter 2021.

While much in the world has changed, our core commitment to our investors has not. We remain dedicated to generating competitive, risk-controlled returns over full market cycles, providing competitively-priced products, delivering outstanding service and continuing to invest in our long-tenured and seasoned investment team.

Through all of the challenges in 2020, we never lost sight of the fact that our long-term success rests on the trust you have placed in us to be effective stewards of your assets. We want to express our sincere appreciation for your confidence in our work and continued investment in the Baird Bond Funds. May 2021 bring you health, happiness and success.

Sincerely,

Mary Ellen Stanek, CFA

President

Baird Funds

Page 1

2020 Bond Market Overview

(Unaudited)

2020 – Global Pandemic Shock Followed by Massive Coordinated Fiscal and Monetary Response

Treasury yields fell across the curve in 2020, with the benchmark 10yr Treasury down 100 bps to finish the year at 0.92%, after hitting an all-time [intra-day] record low of 0.31% on March 9. The curve steepened, with the spread between 2yr and 30yr Treasuries increasing from 82 bps to 153 bps during the year, as yields in shorter maturities saw the largest decline. Starting in late February, the coronavirus (COVID-19) affected every aspect of the economy, leading to the swiftest equity bear market in history, with an over 33% peak-to-trough drop in the S&P 500 in just over a month ending March 23, and fixed income markets hitting levels of distress not seen since the Global Financial Crisis (GFC) in 2008. However, unlike 2008, the massive, coordinated monetary and fiscal responses resulted in a much swifter recovery. Unemployment dropped to 6.7% by year end after peaking at 14.7% in April as businesses reopened, and the Pfizer and Moderna vaccines offered hope for a return to normal. The S&P 500 ended the year +16% at record highs and credit spreads tightened through year end, completely erasing the pandemic-related widening in many sectors. The COVID-19 pandemic and the policy response to it essentially created a full market cycle for spreads in the span of a calendar year.

Treasury Yields

   

Maturity	12/31/19	9/30/20	12/31/20	Q4 Change	2020 Change
3mo	1.55%	0.10%	0.09%	-0.01%	-1.46%
1	1.60%	0.12%	0.11%	-0.01%	-1.49%
2	1.57%	0.13%	0.12%	-0.01%	-1.45%
3	1.61%	0.15%	0.17%	0.02%	-1.44%
5	1.69%	0.27%	0.36%	0.09%	-1.33%
7	1.83%	0.47%	0.65%	0.18%	-1.18%
10	1.92%	0.68%	0.92%	0.24%	-1.00%
30	2.39%	1.45%	1.65%	0.20%	-0.74%

Fed’s Response and Congress’ CARES Act Eased the Pain; Politics and Geopolitical Uncertainty were High in 2020

The Fed cut rates in two emergency meetings in early March, slashing the fed funds rate 150 bps to the zero bound. Then as credit markets froze up, the Fed implemented “unlimited” purchases of U.S. Treasuries and Agency Mortgage-Backed Securities at a truly astounding pace, authorizing their fourth quantitative easing (“QE”) program with purchases of up to $75B Treasuries and $50B MBS per day, buying more in a day than during a full month during QE3. The Fed rebooted several 2008-era emergency lending programs, and created a few brand new lending facilities to keep primary and secondary bond trading in corporates and municipals from grinding to a halt. Late in March, Congress passed the $2.2T Coronavirus Aid, Relief, and Economic Security

 

Page 2

2020 Bond Market Overview

(Unaudited)

(CARES) Act, the largest fiscal aid package ever at 10% of GDP. The act included support for small businesses, direct payments and enhanced unemployment benefit payments to consumers, and additional funding to hospitals and health care providers. In August, Fed Chair Powell released a “Statement on Longer-Run Goals and Monetary Policy Strategy” – as expected, the Fed moved to an inflation target that averages 2% over time, while forecasting the fed funds rate to remain at the zero bound through 2023. Housing was a bright spot in the economy, with the Freddie Mac 30-yr Mortgage Market Survey Rate hitting all-times lows 14 times during the year, ending at 2.7%. Political uncertainty was high throughout the year. Democratic challenger Joe Biden defeated incumbent President Trump in November, and despite claims of widespread voter fraud by President Trump, Biden was inaugurated on January 20. U.S./China trade tensions continued and Beijing further limited Hong Kong’s autonomy by enacting a national security law on June 30. The UK officially left the EU on January 31, 2020, reaching a final agreement on trade in late December and avoiding a worst-case scenario no-deal Brexit.

As the Fed Balance Sheet Expanded at a Furious Pace, Fixed Income Flows Rebounded

The Fed’s bond-buying program (QE4) added an astounding $3T to its investment portfolio, from $3.7 T to $6.7T. QE4 in combination with slashing short rates to zero helped stabilize the bond market. As investor confidence swiftly returned, the $175B in YTD net mutual fund and ETF outflows through March completely reversed, and fund inflows returned at record-setting pace. Net fixed income mutual fund and ETF inflows ended 2020 at $415B and, importantly, the ICI data doesn’t fully capture demand from all market participants – such as insurance companies, pensions, and foreign investors. Global investors have been drawn to the positive yields on U.S. debt, as nearly $18T in global bonds were trading at negative yields at year end, reaching all-time highs in 2020 according to Bloomberg data.

Option-Adjusted Spreads (in bps)

		March			Q4	YTD
	12/31/19	Wides	9/30/20	12/31/20	Chg	Chg
U.S. Aggregate Index	39	127 (3/20)	60	42	-18	3
U.S. Agency (non-mortgage)	10	53 (3/25)	16	10	-6	0
Mortgage and ABS Sectors
U.S. Agency Pass-throughs	39	132 (3/19)	61	39	-22	0
U.S. Agency CMBS	53	144 (3/23)	62	44	-18	-9
U.S. Non-Agency CMBS	85	348 (3/25)	139	109	-30	24
Asset-Backed Securities	44	325 (3/26)	41	33	-8	-11
Corporate Sectors
U.S. Investment Grade	93	373 (3/23)	136	96	-40	3
Industrial	99	383 (3/23)	140	101	-39	2
Utility	97	298 (3/24)	141	106	-35	9
Financial Institutions	80	378 (3/23)	126	83	-43	3
Other Govt. Related	72	180 (3/23)	84	66	-18	-6
U.S. High Yield Corporates	336	1100 (3/23)	517	360	-157	24
Emerging Market Debt	573	1370 (3/23)	638	503	-135	-70

Source: Bloomberg Barclays Indices

Page 3

2020 Bond Market Overview

(Unaudited)

2020 Spreads: Full Market Cycle for Spreads in One Year

Spreads in most sectors ended the year relatively close to where they began, masking huge intra-year volatility in 2020. For the year, spreads in Agency Pass-throughs were flat, U.S. Investment Grade Corporates widened 3 bps and ABS tightened 11 bps. However, at their March wides, these three sectors were wider by 93 bps, 280 bps and 281 bps, respectively. These swings were due in large part to the uncertainty around COVID-19 and what impact the government’s containment efforts would have on the economy, the unprecedented fiscal and monetary support detailed above, and positive vaccine news later in the year providing investors with a light at the end of the tunnel. In particular, the tightening in Agency Pass-through spreads was primarily due to the Fed’s $600B in net purchases, which decreased available supply to investors. Furthermore, record-low mortgage rates provided strength to the housing sector and homeowners refinanced at faster-than-expected speeds. Outlier sectors include Non-Agency CMBS, which widened 24 bps (with the most severe widening focused in “A” and lower rated securities) on uncertainty around pandemic-hit sectors such as retail and hotel space, and U.S. High Yield Corporates which widened 24 bps. The outsized move tighter in Emerging Market Debt for the year (70 bps tighter) was largely driven by the removal of Venezuela from the index in May which reduced the OAS of the index by over 300bps. (The EM index underperformed similar-maturity Treasuries in 2020). Investment Grade Corporates had record gross ($2.1T) and net ($1.1T) supply, which was met by very strong demand.

Strong Market Returns, Credit Outperformed in 2020

The returns in the U.S. fixed income market were truly remarkable considering the strong total returns in 2019 and the fact the 10-year Treasury yield began the year at just 1.92%. Both credit risk and duration risk were rewarded in 2020. U.S. Investment Grade Corporates posted the strongest spread sector returns in 2020 (+9.89%), and returns on longer maturities (U.S. Gov’t/Credit + 8.93%) were substantially greater than those on shorter maturities (U.S. 1-3 Yr. Gov’t/Credit Index +3.33%). Agency Pass-throughs were the weakest-performing sector (+3.87%), largely due to record-low mortgage rates and historically fast residential mortgage refinancing activity, generating large prepayments in the premium-priced sector. TIPS were the top-performing sector (+10.99%) due to their longer duration and the Fed’s efforts to engineer negative real yields.

Total Returns of Selected Bloomberg Barclays Indices and Subsectors

					Effective
	December	Q4	2020	2019	Duration (yrs)
U.S. Aggregate Index	0.14%	0.67%	7.51%	8.72%	6.22
U.S. Gov’t/Credit Index	0.09%	0.82%	8.93%	9.71%	7.74
U.S. Intermediate Gov’t/Credit Index	0.21%	0.48%	6.43%	6.80%	4.12
U.S. 1-3 Yr. Gov’t/Credit Index	0.09%	0.21%	3.33%	4.03%	1.91
U.S. Treasury	-0.23%	-0.83%	8.00%	6.86%	7.21
U.S. Agency (Non-Mortgage)	0.11%	0.04%	5.48%	5.89%	3.66
U.S. Agency Pass-Throughs	0.22%	0.24%	3.87%	6.35%	2.34
CMBS (Commercial Mortgage
Backed Securities)	0.73%	1.05%	8.11%	8.29%	5.31
ABS (Asset-Backed Securities)	0.20%	0.36%	4.52%	4.53%	2.10
U.S. Corporate Investment Grade	0.44%	3.05%	9.89%	14.54%	8.84
U.S. High Yield Corporates	1.88%	6.45%	7.11%	14.32%	3.58
Emerging Market Debt	2.86%	7.62%	4.26%	10.90%	5.35
Municipal Bond Index	0.61%	1.82%	5.21%	7.54%	5.18
TIPS (Treasury Inflation
Protected Securities)	1.15%	1.62%	10.99%	8.43%	7.81

Page 4

2020 Bond Market Overview

(Unaudited)

2021 Outlook

We expect above-average economic growth in 2021 as the lagged stimulus benefits, reduced spread of COVID-19 as vaccinations increase, and pent-up consumer demand take effect. While the Fed will remain highly accommodative, anchoring short-term rates at zero and continuing QE, market consensus anticipates a steeper curve with higher inflation expectations and ever-rising Treasury supply pushing longer rates higher. However, we anticipate more modest upward pressure on yields as still-strong secular disinflationary forces temper near-term cyclical inflation pressure and strong demand from yield-starved investors limit the increase in yields. We expect spreads to remain relatively tight in 2021 on solid and improving fundamentals and favorable supply/demand technicals. Absolute returns will be more modest given the low starting yields, and every basis point will be especially important. Sector weightings, security selection and roll down will take on even greater importance in this new year.

Disclosures

Fixed income is generally considered to be a more conservative investment than stocks, but bonds and other fixed income investments still carry a variety of risks such as interest rate risk, credit risk, inflation risk, and liquidity risk. In a rising interest rate environment, the value of fixed-income securities generally decline and conversely, in a falling interest rate environment, the value of fixed-income securities generally increase. High yield securities may be subject to heightened market, interest rate or credit risk and should not be purchased solely because of the stated yield.

The Bloomberg Barclays Aggregate Bond Index is an index comprised of approximately 6000 publicly traded bonds including U.S. Government, mortgage-backed, corporate, and Yankee bonds with an average maturity of approximately 10 years.

The Bloomberg Barclays Government/Credit Index is a combination of the Government Index which measures government-bond general and Treasury funds, and the Credit Bond Index, which is a market value-weighted index which tracks the returns of all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC registered, investment grade Corporate Debt.

The Bloomberg Barclays Intermediate Government/Credit Index is a combination of the Government Index which measures government-bond general and Treasury funds, and the Credit Bond Index, which is a market value-weighted index which tracks the returns of all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC registered, investment grade Corporate Debt with maturities between one and ten years.

The Bloomberg Barclays Government/Credit Intermediate Index (1 – 3 yr.)  is a combination of the Government Index which measures government-bond general and Treasury funds, and the Credit Bond Index, which is a market value-weighted index which tracks the returns of all publicly issued, fixed-rate, nonconvertible, dollar-denominated, SEC registered, investment grade Corporate Debt with maturities between zero and three years.

The Bloomberg Barclays U.S. Treasury Index includes public obligations of the U.S. Treasury.  Treasury bills are excluded by the maturity constraint of at least one year but are part of a separate Short Treasury Index.  In addition, certain special issues, such as state and local government series bonds (SLGs), as well as U.S. Treasury TIPS, are excluded.  STRIPS are excluded from the index because their inclusion would result in double-counting.  Securities in the Index roll up to the U.S. Aggregate, U.S. Universal, and Global Aggregate Indices.  The U.S. Treasury Index was launched on January 1, 1973.

U.S. Agency:  This index is the U.S. Agency component of the U.S. Government/Credit index.  Publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government (such as USAID securities). The largest issues are Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System (FHLB). The index includes both callable and non-callable agency securities.

Page 5

2020 Bond Market Overview

(Unaudited)

U.S Corporate – Investment Grade:  This index is the Corporate component of the U.S. Credit index.  It includes publicly issued U.S. corporate and specified foreign debentures and secured notes that meet the specified maturity, liquidity, and quality requirements. To qualify, bonds must be SEC-registered.

CMBS (Commercial Mortgage-Backed Securities):  This index is the CMBS component of the U.S. Aggregate index.  The Bloomberg Barclays CMBS ERISA-Eligible Index is the ERISA-eligible component of the Bloomberg Barclays CMBS Index. This index, which includes investment grade securities that are ERISA eligible under the underwriter’s exemption, is the only CMBS sector that is included in the U.S. Aggregate Index.

MBS (Mortgage-Backed Securities):  This index is the U.S. MBS component of the U.S. Aggregate index.  The MBS Index covers the mortgage-backed pass-through securities of Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). The MBS Index is formed by grouping the universe of over 600,000 individual fixed rate MBS pools into approximately 3,500 generic aggregates.

ABS (Asset-Backed Securities):  This index is the ABS component of the U.S. Aggregate index.  The ABS index has three subsectors:  credit and charge cards, autos, and utility.  The index includes pass-through, bullet, and controlled amortization structures.  The ABS Index includes only the senior class of each ABS issue and the ERISA-eligible B and C tranche. The Manufactured Housing sector was removed as of January 1, 2008, and the Home Equity Loan sector was removed as of October 1, 2009.

Corporate High Yield:  The Bloomberg Barclays U.S. High Yield Index covers the universe of fixed rate, non-investment grade debt. Eurobonds and debt issues from countries designated as emerging markets (sovereign rating of Baa1/BBB+/BBB+ and below using the middle of Moody’s, S&P, and Fitch) are excluded, but Canadian and global bonds (SEC registered) of issuers in non-EMG countries are included. Original issue zeroes, step-up coupon structures, 144-As and pay-in-kind bonds (PIKs, as of October 1, 2009) are also included.

Emerging Market: Bloomberg uses a fixed list of countries defined as emerging markets countries for index inclusion purposes that is based on World Bank Income group definitions (Low/Middle), IMF country classifications (Non-Advanced Economies), and other advanced economies that may be less accessible or investable for global debt investors.

The Bloomberg Barclays Municipal Bond Index is a broad-based, total-return index.  The bonds are all investment-grade, tax-exempt, and fixed-rate securities with long-term maturities (greater than 2 years).  They are selected from issues larger than $50 million.

The Bloomberg Barclays TIPS Index consists of Treasury Inflation Protected Securities (TIPS).  TIPS are securities whose principal is tied to the Consumer Price Index.  TIPS pay interest semi-annually, based on the fixed rate applied to the adjusted principal.

Ratings are measured on a scale that ranges from AAA or Aaa (highest) to D or C (lowest). Investment grade investments are those rated from highest down to BBB- or Baa3.

Robert W. Baird & Co. Incorporated. This is not a complete analysis of every material fact regarding any company, industry or security. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy. Indices are unmanaged, and are not available for direct investment. Past performance is not a guarantee of future results.

Page 6

Baird Ultra Short Bond Fund

December 31, 2020 (Unaudited)

The Baird Ultra Short Bond Fund seeks current income consistent with preservation of capital. The Fund’s primary benchmark index against which it measures performance is the Bloomberg Barclays U.S. Short-Term Government/Corporate Index. The Bloomberg Barclays U.S. Short-Term Government/Corporate Index is an unmanaged, market value weighted index of investment grade fixed debt, including government and corporate securities, with maturities of less than one year.

Treasury yields fell across the curve in 2020, with the benchmark 10-year Treasury down 100 bps to finish the year at 0.92%, after hitting an all-time [intra-day] record low of 0.31% on March 9. The curve steepened, with the spread between 2-year and 30-year Treasuries increasing from 82 bps to 153 bps during the year, as yields in shorter maturities saw the largest decline. Starting in late February, the coronavirus (COVID-19) affected every aspect of the economy, leading to the swiftest equity bear market in history, with an over 33% peak-to-trough drop in the S&P 500 in just over a month ending March 23, and fixed income markets hitting levels of distress not seen since the Global Financial Crisis (GFC) in 2008. However, unlike 2008, the massive, coordinated monetary and fiscal policy response resulted in a much swifter recovery. U.S. unemployment dropped to 6.7% by year end after peaking at 14.7% in April as businesses reopened, and the Pfizer and Moderna vaccines offered hope for a return to normal sometime in 2021. The S&P 500 ended the year up 16% at record highs, and credit spreads tightened through year end, completely erasing the pandemic-related widening in many sectors. The COVID-19 pandemic and the massive government policy response to it essentially created a full market cycle for spreads in the span of a calendar year.

During 2020, the Fund’s Institutional Class Shares generated strong absolute and relative returns and outperformed its benchmark by 35 basis points net of fees. The primary factors contributing to the Fund’s absolute and relative performance in 2020 include:

• Credit Positioning

 • Positive – Overweight to Investment Grade Credit (increased exposure post widening of the spread)

 • Positive – Opportunistically increasing exposure to municipal securities

• Mortgage-Backed Securities (MBS) & Asset-Backed Securities (ABS) Positioning – Positive overall

 • Positive – Exposure to ABS & Non-Agency RMBS (increased exposure post widening of the spread)

We expect the economic impact of COVID-19 to linger well into 2021, particularly as it relates to the travel and hospitality service sectors. Yet, with the massive fiscal stimulus that is already in the pipeline, and likely more coming now that the Democratic Party has full, albeit narrow, control of Washington, above-average economic growth is very likely in 2021. Stronger growth may pressure inflation modestly higher, a goal of the Fed, translating into moderately higher intermediate and long-term rates. With short-term rates still anchored close to zero by the Fed, a steeper yield curve will enable investors to capture some added performance as bonds roll down the curve. We expect the roll-down return to be an important component of total return this year, as well as security selection, sector allocation, and the yield advantage the Fund enjoys above that of its benchmark. Strategic positioning across market sectors and along the yield curve (including the ability to thoughtfully reposition should spreads widen into volatility) will complement the always-important security selection process to help navigate through the current environment.

The Fund remains duration neutral with a modest overweight to Investment Grade corporate credit, particularly Financials. The Fund is also maintaining its allocation in the MBS/ABS sectors at the senior part of the capital structure given attractive relative valuations and the continued broad sector diversification benefit they provide to the overall portfolio. The Fund only purchases U.S. dollar denominated securities in the cash bond market (no derivatives) and we believe the Fund is well positioned to add value relative to its benchmark.

Page 7

Baird Ultra Short Bond Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

Quality Distribution⁽¹⁾⁽²⁾

	Net Assets	$4,579,120,228
	SEC 30-Day
	Yield(3)
	Institutional Class
	(Subsidized)	0.68%
	Institutional Class
	(Unsubsidized)	0.53%
	Investor Class
	(Subsidized)	0.43%
	Investor Class
	(Unsubsidized)	0.29%
	Average
	Effective
	Duration	0.47 years
	Average
	Effective
Sector Weightings(1)	Maturity	0.53 years
	Annualized
	Expense Ratio(4)
	Gross
	Institutional Class	0.30%
	Investor Class	0.55%	(5)
	Net
	Institutional Class	0.15%
	Investor Class	0.40%	(5)
	Portfolio
	Turnover Rate	92%
	Number of
	Holdings	453

(1)	Percentages shown are based on the Fund’s total investments.
(2)	The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO).  NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest).
(3)	SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2020.
(4)	Reflects expense ratios as stated in the Fund’s current prospectus.  The Advisor has contractually agreed to waive management fees in an amount equal to an annual rate of 0.15% of average daily net assets for the Fund, at least through April 30, 2022.  The agreement may only be terminated prior to the end of this term by or with the consent of the Board of Directors of Baird Funds, Inc.
(5)	Includes 0.25% 12b-1 fee.

Page 8

Baird Ultra Short Bond Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on the Fund’s inception date (12/31/13), assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on the Fund’s inception date (12/31/13), assuming reinvestment of all distributions.

Page 9

Baird Ultra Short Bond Fund

December 31, 2020 (Unaudited)

Total Returns

		Average Annual
	One	Three	Five	Since
For the Periods Ended December 31, 2020	Year	Years	Years	Inception(1)
Institutional Class Shares	1.66%	2.24%	1.91%	1.58%
Investor Class Shares	1.66%	2.04%	1.70%	1.36%
Bloomberg Barclays U.S. Short-Term
Government/Corporate Index(2)	1.31%	2.00%	1.55%	1.17%

(1)	For the period from December 31, 2013 (inception date) through December 31, 2020.
(2)	The Bloomberg Barclays U.S. Short-Term Government/Corporate Index is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government and corporate securities, with maturities less than one year.  This Index does not reflect any deduction for fees, expenses or taxes.  A direct investment in an index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund may invest up to 10% of its net assets in non-investment grade debt securities (commonly referred to as “high yield” bonds).  While these types of securities typically offer higher yields than investment grade securities, they also include greater risks including increased credit risk and the increased risk of default or bankruptcy.  The Fund may also invest in U.S. dollar denominated foreign securities which involve additional risks such as political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund may also invest in mortgage- and asset-backed securities, which include interest rate and prepayment risks more pronounced than those of other fixed income securities.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com.  Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 10

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments

	Principal				% of
	Amount		Value		Net Assets
U.S. Treasury Securities
U.S. Treasury Bonds:
2.000%, 01/15/2021	$	45,000,000	$	45,025,000
2.250%, 02/15/2021		15,000,000		15,035,923
2.375%, 03/15/2021		80,000,000		80,347,059
2.625%, 05/15/2021		190,000,000		191,736,718
2.125%, 08/15/2021		230,000,000		232,857,032
2.000%, 11/15/2021		245,000,000		249,000,389
2.500%, 01/15/2022		60,000,000		61,475,820
Total U.S. Treasury Securities
(Cost $875,369,336)				875,477,941		19.1	%
Other Government Related Securities
Industrial Bank of Korea,
0.814%, 08/02/2021
(3 Month LIBOR USD + 0.600%)(1)(2)(3)		4,000,000		4,007,280
Total Other Government Related Securities
(Cost $4,000,000)				4,007,280		0.1	%
Corporate Bonds
Industrials
AbbVie, Inc.:
0.563%, 05/21/2021
(3 Month LIBOR USD + 0.350%)(3)		6,525,000		6,531,296
2.150%, 11/19/2021		7,195,000		7,310,885
5.000%, 12/15/2021		18,628,000		19,230,778
Analog Devices, Inc.,
2.500%, 12/05/2021		2,000,000		2,036,045
Anglo American Capital PLC,
4.125%, 04/15/2021(1)(2)		5,304,000		5,346,303
AT&T, Inc.,
1.187%, 07/15/2021
(3 Month LIBOR USD + 0.950%)(3)		3,000,000		3,013,429
AutoNation, Inc.,
3.350%, 01/15/2021		1,403,000		1,403,794
BAE Systems PLC,
4.750%, 10/11/2021(1)(2)		4,395,000		4,536,139
Bayer US Finance II LLC:
0.881%, 06/25/2021
(3 Month LIBOR USD + 0.630%)(2)(3)		10,000,000		10,020,308
3.500%, 06/25/2021(2)		7,110,000		7,196,439
2.750%, 07/15/2021(2)		1,184,000		1,198,625
Bayer US Finance LLC,
3.000%, 10/08/2021(2)		2,800,000		2,847,685
Becton Dickinson and Co.,
3.125%, 11/08/2021		31,610,000		32,310,779

The accompanying notes are an integral part of these financial statements.

Page 11

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
BG Energy Capital PLC,
4.000%, 10/15/2021(1)(2)	$	2,940,000	$	3,018,393
BMW US Capital LLC,
3.100%, 04/12/2021(2)		2,671,000		2,690,124
Broadcom, Inc.:
3.125%, 04/15/2021		16,222,000		16,314,888
3.000%, 01/15/2022		8,997,000		9,203,978
Campbell Soup Co.,
0.847%, 03/15/2021
(3 Month LIBOR USD + 0.630%)(3)		4,275,000		4,278,824
Canadian Natural Resources Ltd.,
3.450%, 11/15/2021(1)		12,696,000		12,923,512
Celanese US Holdings LLC,
5.875%, 06/15/2021		3,491,000		3,567,853
CF Industries, Inc.,
3.400%, 12/01/2021(2)		10,045,000		10,280,584
Cigna Corp.:
0.879%, 09/17/2021
(3 Month LIBOR USD + 0.650%)(3)		2,000,000		2,000,316
3.900%, 02/15/2022		9,376,000		9,740,612
CNH Industrial Capital LLC:
4.875%, 04/01/2021		2,009,000		2,028,658
3.875%, 10/15/2021		9,528,000		9,751,722
CRH America, Inc.,
5.750%, 01/15/2021		4,855,000		4,861,878
CVS Health Corp.,
0.950%, 03/09/2021
(3 Month LIBOR USD + 0.720%)(3)		7,485,000		7,493,669
Daimler Finance North America LLC:
0.663%, 02/22/2021
(3 Month LIBOR USD + 0.450%)(2)(3)		3,500,000		3,501,612
3.000%, 02/22/2021(2)		2,800,000		2,809,236
3.350%, 05/04/2021(2)		4,605,000		4,649,164
2.000%, 07/06/2021(2)		5,000,000		5,039,614
3.750%, 11/05/2021(2)		6,629,000		6,812,710
2.850%, 01/06/2022(2)		1,091,000		1,117,046
1.121%, 02/15/2022
(3 Month LIBOR USD + 0.900%)(2)(3)		3,500,000		3,526,332
1.093%, 02/22/2022
(3 Month LIBOR USD + 0.880%)(2)(3)		3,150,000		3,172,925
Danone SA,
2.077%, 11/02/2021(1)(2)		4,184,000		4,235,610
Dentsply Sirona,
4.125%, 08/15/2021		2,000,000		2,024,848

The accompanying notes are an integral part of these financial statements.

Page 12

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Eastman Chemical Co.,
3.500%, 12/01/2021	$	10,820,000	$	11,113,875
Enbridge Energy Partners LP,
4.200%, 09/15/2021		7,459,000		7,584,338
Energy Transfer Operating LP,
4.650%, 06/01/2021		9,491,000		9,562,203
Energy Transfer Partners LP,
5.200%, 02/01/2022		3,500,000		3,630,277
Enterprise Products Operating LLC,
2.850%, 04/15/2021		20,701,000		20,802,070
Equifax, Inc.:
1.091%, 08/15/2021
(3 Month LIBOR USD + 0.870%)(3)		6,420,000		6,439,738
3.600%, 08/15/2021		2,859,000		2,912,280
ERAC USA Finance LLC,
2.600%, 12/01/2021(2)		3,100,000		3,153,606
Family Dollar Stores, Inc.,
5.000%, 02/01/2021		905,000		907,719
FedEx Corp.,
3.400%, 01/14/2022		12,500,000		12,894,854
Ford Motor Credit Co. LLC:
5.085%, 01/07/2021		350,000		350,000
5.750%, 02/01/2021		5,200,000		5,213,000
3.336%, 03/18/2021		1,700,000		1,704,250
Fresenius Medical Care US Finance, Inc.,
5.750%, 02/15/2021(2)		8,027,000		8,071,571
Fresenius US Finance II, Inc.,
4.250%, 02/01/2021(2)		2,350,000		2,355,997
General Mills, Inc.,
0.770%, 04/16/2021
(3 Month LIBOR USD + 0.540%)(3)		3,500,000		3,505,008
General Motors Co.,
1.130%, 09/10/2021
(3 Month LIBOR USD + 0.900%)(3)		1,500,000		1,501,725
General Motors Financial Co., Inc.:
4.200%, 03/01/2021		1,815,000		1,819,463
3.550%, 04/09/2021		4,155,000		4,187,169
3.200%, 07/06/2021		11,356,000		11,478,144
4.375%, 09/25/2021		2,808,000		2,883,823
4.200%, 11/06/2021		7,996,000		8,241,614
3.450%, 01/14/2022		4,100,000		4,209,693
Georgia-Pacific LLC,
3.163%, 11/15/2021(2)		3,670,000		3,738,778
Glencore Finance (Canada) Ltd.,
4.950%, 11/15/2021(1)(2)		14,364,000		14,937,489

The accompanying notes are an integral part of these financial statements.

Page 13

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Global Payments, Inc.,
3.800%, 04/01/2021	$	12,116,000	$	12,182,684
Grupo Bimbo SAB de CV,
4.500%, 01/25/2022(1)(2)		3,000,000		3,117,570
Halliburton Co.,
3.250%, 11/15/2021		2,121,000		2,157,364
Hewlett Packard Enterprise Co.:
0.900%, 03/12/2021
(3 Month LIBOR USD + 0.680%)(3)		5,000,000		5,004,432
3.500%, 10/05/2021		13,340,000		13,621,736
Hyundai Capital America:
3.450%, 03/12/2021(2)		1,905,000		1,914,430
2.450%, 06/15/2021(2)		3,150,000		3,174,852
3.750%, 07/08/2021(2)		17,785,000		18,044,821
3.950%, 02/01/2022(2)		1,595,000		1,647,888
Hyundai Capital America, Inc.,
1.174%, 07/08/2021
(3 Month LIBOR USD + 0.940%)(2)(3)		1,825,000		1,827,422
IDEX Corp.,
4.200%, 12/15/2021		1,200,000		1,230,837
Ingersoll-Rand Global Holding Co. Ltd.,
2.900%, 02/21/2021		3,000,000		3,009,493
International Business Machines Corp.,
0.621%, 05/13/2021
(3 Month LIBOR USD + 0.400%)(3)		6,400,000		6,409,289
JD.com, Inc.,
3.125%, 04/29/2021(1)		10,645,000		10,718,195
Keurig Dr Pepper, Inc.:
3.551%, 05/25/2021		3,624,000		3,669,199
2.530%, 11/15/2021		1,000,000		1,018,444
Kinder Morgan Energy Partners LP:
5.800%, 03/01/2021		9,581,000		9,659,000
5.000%, 10/01/2021		11,779,000		12,033,506
Kinder Morgan, Inc.,
5.000%, 02/15/2021(2)		9,105,000		9,131,871
Kinross Gold Corp.,
5.125%, 09/01/2021(1)		22,869,000		23,281,768
Kroger Co.,
3.400%, 04/15/2022		4,800,000		4,950,123
Lennar Corp.,
6.250%, 12/15/2021		18,621,000		19,067,904
Marathon Petroleum Corp.,
5.125%, 03/01/2021		5,000,000		5,035,364

The accompanying notes are an integral part of these financial statements.

Page 14

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Marriott International, Inc.:
0.876%, 03/08/2021
(3 Month LIBOR USD + 0.650%)(3)	$	3,300,000	$	3,301,252
2.300%, 01/15/2022		3,002,000		3,041,508
Microchip Technology, Inc.,
3.922%, 06/01/2021		33,038,000		33,507,114
Molson Coors Beverage Co.,
2.100%, 07/15/2021		18,135,000		18,287,214
Mosaic Co.,
3.750%, 11/15/2021		2,105,000		2,146,843
Mylan NV,
3.150%, 06/15/2021(1)		23,233,000		23,457,585
Nissan Motor Acceptance Corp.:
2.550%, 03/08/2021(2)		4,630,000		4,642,617
1.900%, 09/14/2021(2)		1,250,000		1,258,648
0.869%, 09/21/2021
(3 Month LIBOR USD + 0.630%)(2)(3)		4,800,000		4,788,178
3.650%, 09/21/2021(2)		3,773,000		3,838,751
2.800%, 01/13/2022(2)		7,409,000		7,534,477
Occidental Petroleum Corp.:
4.850%, 03/15/2021		5,160,000		5,160,000
1.671%, 08/15/2022
(3 Month LIBOR USD + 1.450%)(3)		8,000,000		7,840,000
Orlando Health Obligated Group,
3.205%, 10/01/2021		1,000,000		1,017,797
Ovintiv Inc.,
3.900%, 11/15/2021 (Callable 8/15/2021)		11,619,000		11,765,061
Penske Truck Leasing Co.:
3.300%, 04/01/2021(2)		3,000,000		3,013,789
3.650%, 07/29/2021(2)		6,560,000		6,661,245
3.375%, 02/01/2022(2)		11,050,000		11,342,921
Phillips 66:
0.833%, 02/26/2021
(3 Month LIBOR USD + 0.600%)(3)		2,710,000		2,710,313
4.300%, 04/01/2022		3,751,000		3,928,290
POSCO,
5.250%, 04/14/2021(1)(2)		9,116,000		9,223,933
Raytheon Technologies Corp.,
3.100%, 11/15/2021		6,329,000		6,443,205
Regency Energy Partners LP /
Regency Energy Finance Corp.,
5.875%, 03/01/2022		4,001,000		4,183,151
Reliance Industries Ltd.,
5.400%, 02/14/2022(1)(2)		1,100,000		1,151,707
Roper Technologies, Inc.,
2.800%, 12/15/2021		2,851,000		2,911,539

The accompanying notes are an integral part of these financial statements.

Page 15

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Sabine Pass Liquefaction LLC,
6.250%, 03/15/2022	$	11,834,000	$	12,454,625
Seven & i Holdings Co., Ltd.,
3.350%, 09/17/2021(1)(2)		1,608,000		1,639,374
Shell International Finance BV,
1.875%, 05/10/2021(1)		10,200,000		10,258,170
Sonoco Products Co.,
4.375%, 11/01/2021		2,000,000		2,040,873
Southern Natural Gas Co. LLC,
4.400%, 06/15/2021 (Callable 03/15/2021)		22,428,000		22,595,106
Spirit AeroSystems, Inc.,
1.017%, 06/15/2021
(3 Month LIBOR USD + 0.800%)(3)		4,000,000		3,949,447
Sunoco Logistics Partners Operations LP,
4.400%, 04/01/2021		15,000,000		15,093,762
Takeda Pharmaceutical Co. Ltd.,
2.450%, 01/18/2022(1)(2)		3,076,000		3,136,042
Telefonica Emisiones SA,
5.462%, 02/16/2021(1)		8,643,000		8,691,409
Time Warner Cable LLC,
4.000%, 09/01/2021		24,622,000		24,971,500
TTX Co.,
4.400%, 05/01/2021(2)		524,000		530,529
Verizon Communications, Inc.,
1.321%, 05/15/2025
(3 Month LIBOR USD + 1.100%(3)		4,000,000		4,107,403
Volkswagen Group of America Finance LLC:
2.500%, 09/24/2021(2)		7,300,000		7,408,773
1.154%, 11/12/2021
(3 Month LIBOR USD + 0.940%)(2)(3)		6,000,000		6,043,263
4.000%, 11/12/2021(2)		10,041,000		10,347,526
Vulcan Materials Co.,
0.875%, 03/01/2021
(3 Month LIBOR USD + 0.650%)(3)		9,236,000		9,239,910
Williams Companies, Inc.:
7.875%, 09/01/2021		11,619,000		12,181,343
4.000%, 11/15/2021		14,625,000		14,939,700
3.600%, 03/15/2022		4,610,000		4,758,695
Xylem, Inc.,
4.875%, 10/01/2021		28,425,000		29,343,279
Zimmer Holdings, Inc.,
3.150%, 04/01/2022		10,898,000		11,207,762
Total Industrials
(Cost $959,650,997)				961,229,118		21.0	%

The accompanying notes are an integral part of these financial statements.

Page 16

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Utilities
American Electric Power Co., Inc.,
3.650%, 12/01/2021	$	6,450,000	$	6,649,187
American Transmission Systems, Inc.,
5.250%, 01/15/2022(2)		9,300,000		9,692,481
EDP Finance BV,
5.250%, 01/14/2021(1)(2)		29,227,000		29,260,974
Emera US Finance LP,
2.700%, 06/15/2021		17,903,000		18,042,314
Exelon Corp.,
2.450%, 04/15/2021		6,615,000		6,640,955
LG&E and KU Energy LLC,
4.375%, 10/01/2021		1,900,000		1,935,085
NextEra Energy Capital Holdings, Inc.,
0.774%, 08/28/2021
(3 Month LIBOR USD + 0.550%)(3)		2,619,000		2,619,842
PNM Resources, Inc.,
3.250%, 03/09/2021		23,964,000		24,058,013
Southwestern Electric Power Co.,
3.550%, 02/15/2022		10,750,000		11,038,099
Tampa Electric Co.,
5.400%, 05/15/2021		2,930,000		2,981,803
Western Power Distribution,
5.375%, 05/01/2021(1)(2)		16,221,000		16,279,448
Total Utilities
(Cost $129,077,713)				129,198,201		2.8	%
Financials
ABN AMRO Bank NV,
0.803%, 08/27/2021
(3 Month LIBOR USD + 0.570%)(1)(2)(3)		1,000,000		1,003,228
Ally Financial, Inc.:
4.250%, 04/15/2021		11,625,000		11,744,648
4.125%, 02/13/2022		13,631,000		14,155,614
American International Group, Inc.,
3.300%, 03/01/2021		1,804,000		1,807,798
Banco Santander SA,
3.500%, 04/11/2022(1)		6,505,000		6,755,142
Bank of America Corp.:
5.700%, 01/24/2022		11,399,000		12,047,096
0.901%, 06/25/2022
(3 Month LIBOR USD + 0.650%)(3)		4,000,000		4,010,140
Barclays Bank PLC,
10.180%, 06/12/2021(1)(2)		1,951,000		2,029,135

The accompanying notes are an integral part of these financial statements.

Page 17

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Barclays PLC:
3.250%, 01/12/2021(1)	$	3,720,000	$	3,722,007
3.200%, 08/10/2021(1)		16,325,000		16,594,192
BBVA USA:
0.951%, 06/11/2021
(3 Month LIBOR USD + 0.730%)(3)		4,750,000		4,760,819
3.500%, 06/11/2021		26,214,000		26,510,168
BPCE SA,
2.750%, 12/02/2021(1)		5,870,000		5,997,664
Capital One Financial Corp.,
3.450%, 04/30/2021		8,401,000		8,463,401
Capital One NA,
2.950%, 07/23/2021		14,214,000		14,386,385
CIT Group, Inc.,
4.125%, 03/09/2021		16,265,000		16,313,795
Citibank NA,
0.824%, 05/20/2022
(3 Month LIBOR USD + 0.600%)(3)		7,000,000		7,012,254
Citigroup, Inc.:
2.350%, 08/02/2021		1,269,000		1,283,780
2.900%, 12/08/2021		18,821,000		19,227,751
1.175%, 04/25/2022
(3 Month LIBOR USD + 0.960%)(3)		4,875,000		4,918,518
Citizens Bank NA,
0.941%, 02/14/2022
(3 Month LIBOR USD + 0.720%)(3)		1,500,000		1,506,976
Citizens Financial Group, Inc.,
2.375%, 07/28/2021		4,000,000		4,039,336
Credit Suisse,
3.450%, 04/16/2021(1)		11,509,000		11,614,474
Danske Bank A/S,
5.000%, 01/12/2022(1)(2)		19,458,000		20,313,341
Deutsche Bank AG:
3.150%, 01/22/2021(1)		11,708,000		11,720,986
4.250%, 10/14/2021(1)		11,666,000		11,962,630
Fifth Third Bank NA,
0.854%, 02/01/2022
(3 Month LIBOR USD + 0.640%)(3)		2,000,000		2,011,945
Goldman Sachs Group, Inc.:
1.977%, 02/25/2021
(3 Month LIBOR USD + 1.770%)(3)		2,285,000		2,290,520
5.750%, 01/24/2022		27,450,000		29,014,534
HSBC Finance Corp.,
6.676%, 01/15/2021		9,975,000		9,988,377

The accompanying notes are an integral part of these financial statements.

Page 18

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Lloyds Bank PLC:
0.703%, 05/07/2021
(3 Month LIBOR USD + 0.490%)(1)(3)	$	3,665,000	$	3,670,488
3.000%, 01/11/2022(1)		7,622,000		7,817,734
Macquarie Bank Ltd.,
6.625%, 04/07/2021(1)(2)		3,971,000		4,032,979
Macquarie Group Ltd.,
6.250%, 01/14/2021(1)(2)		10,344,000		10,358,929
Mitsubishi UFJ Financial Group, Inc.:
0.865%, 07/26/2021
(3 Month LIBOR USD + 0.650%)(1)(3)		5,981,000		5,999,073
0.925%, 03/07/2022
(3 Month LIBOR USD + 0.700%)(1)(3)		3,173,000		3,190,859
Mizuho Financial Group, Inc.:
1.704%, 04/12/2021
(3 Month LIBOR USD + 1.480%)(1)(2)(3)		1,500,000		1,505,692
2.632%, 04/12/2021(1)(2)		3,600,000		3,622,727
1.164%, 02/28/2022
(3 Month LIBOR USD + 0.940%)(1)(3)		5,205,000		5,250,465
Morgan Stanley,
1.398%, 01/20/2022
(3 Month LIBOR USD + 1.180%)(3)		17,400,000		17,408,875
Nationwide Financial Services, Inc.,
5.375%, 03/25/2021(2)		5,372,000		5,430,363
Nordea Bank AB,
4.875%, 05/13/2021(1)(2)		23,525,000		23,886,903
PNC Bank NA,
0.660%, 12/09/2022
(3 Month LIBOR USD + 0.430%)(3)		8,000,000		8,021,985
Reliance Standard Life Global Funding II,
3.050%, 01/20/2021(2)		1,000,000		1,001,146
Santander Holdings USA, Inc.,
4.450%, 12/03/2021		2,000,000		2,065,229
Santander UK Group Holdings PLC:
3.125%, 01/08/2021(1)		4,588,000		4,588,992
2.875%, 08/05/2021(1)		3,270,000		3,315,798
Santander UK PLC:
2.500%, 01/05/2021(1)		2,000,000		2,000,000
3.400%, 06/01/2021(1)		2,088,000		2,114,387
0.881%, 11/15/2021
(3 Month LIBOR USD + 0.660%)(1)(3)		2,750,000		2,763,183
Standard Chartered PLC:
3.050%, 01/15/2021(1)(2)		3,500,000		3,502,627
1.430%, 09/10/2022
(3 Month LIBOR USD + 1.200%)(1)(2)(3)		5,000,000		5,020,907

The accompanying notes are an integral part of these financial statements.

Page 19

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Standard Chartered PLC: (cont.)
1.368%, 01/20/2023
(3 Month LIBOR USD + 1.150%)(1)(2)(3)	$	3,000,000	$	3,019,698
Sumitomo Mitsui Financial Group, Inc.:
2.442%, 10/19/2021(1)		15,000,000		15,246,146
2.846%, 01/11/2022(1)		2,356,000		2,415,068
SunTrust Banks, Inc.,
0.812%, 05/17/2022
(3 Month LIBOR USD + 0.590%)(3)		8,400,000		8,451,060
Svenska Handelsbanken AB,
0.675%, 05/24/2021
(3 Month LIBOR USD + 0.470%)(1)(3)		3,725,000		3,731,626
Swedbank AB,
2.650%, 03/10/2021(1)(2)		1,750,000		1,757,340
Synchrony Bank,
3.650%, 05/24/2021		11,730,000		11,846,307
Synchrony Financial,
3.750%, 08/15/2021		13,877,000		14,075,629
Toronto-Dominion Bank,
3.250%, 06/11/2021(1)		10,000,000		10,131,686
Trinity Acquisition PLC,
3.500%, 09/15/2021(1)		4,815,000		4,901,260
UBS Group Funding Switzerland AG:
2.004%, 04/14/2021
(3 Month LIBOR USD + 1.780%)(1)(2)(3)		8,500,000		8,539,410
1.744%, 02/01/2022
(3 Month LIBOR USD + 1.530%)(1)(2)(3)		4,650,000		4,719,547
Wells Fargo & Co.:
1.240%, 07/26/2021
(3 Month LIBOR USD + 1.025%)(3)		4,975,000		5,001,787
1.144%, 02/11/2022
(3 Month LIBOR USD + 0.930%)(3)		19,300,000		19,316,384
Wells Fargo Bank NA,
0.890%, 09/09/2022
(3 Month LIBOR USD + 0.660%)(3)		8,150,000		8,182,321
Willis Towers Watson PLC,
5.750%, 03/15/2021(1)		17,847,000		18,026,717
Total Financials
(Cost $551,945,322)				553,137,981		12.1	%
Total Corporate Bonds
(Cost $1,640,674,032)				1,643,565,300		35.9	%

The accompanying notes are an integral part of these financial statements.

Page 20

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Municipal Bonds
Berks County Municipal Authority,
1.050%, 05/15/2022 (Callable 01/04/2021)(4)	$	800,000	$	800,000
Borough of Carlstadt NJ,
2.000%, 07/23/2021		8,525,000		8,595,928
Burke County Development Authority:
1.650%, 11/01/2048(4)		3,000,000		3,016,950
1.550%, 12/01/2049(4)		13,000,000		13,207,480
Central Texas Turnpike System,
0.000%, 08/15/2021		1,115,000		1,111,599
Chicago Midway International Airport,
5.000%, 01/01/2021		2,000,000		2,000,000
City of Baton Rouge and Parish of East Baton Rouge,
5.000%, 08/01/2021		1,500,000		1,539,300
City of Bridgeport CT,
3.313%, 07/01/2021		2,150,000		2,171,349
City of New York NY,
0.310%, 10/01/2046 (Callable 01/04/2021)(4)		1,700,000		1,700,000
City of Newark NJ,
2.000%, 10/05/2021		3,000,000		3,021,420
City of Ontario CA,
1.971%, 06/01/2021		470,000		471,772
City of Philadelphia PA,
5.000%, 08/01/2021		1,040,000		1,066,770
City of Troy NY,
1.250%, 07/30/2021		12,902,475		12,982,083
City of Whiting IN,
5.250%, 01/01/2021		10,000,000		10,000,000
Clark County School District,
5.000%, 06/15/2021		1,075,000		1,097,027
Connecticut State Development Authority,
5.500%, 04/01/2021		1,000,000		1,011,690
County of Burleigh ND:
0.650%, 11/01/2021		3,200,000		3,200,640
2.750%, 02/01/2022 (Callable 01/21/2021)		20,000,000		20,003,400
County of Carroll KY,
1.200%, 02/01/2032(4)		14,250,000		14,278,785
County of Clark Department of Aviation,
5.000%, 07/01/2021		9,500,000		9,708,050
County of Hudson NJ,
7.000%, 06/01/2021		5,070,000		5,186,813
County of Lucas OH,
0.450%, 10/15/2021		10,500,000		10,502,205
County of Meade KY,
0.120%, 07/01/2060 (Callable 01/04/2021)(4)		8,000,000		8,000,000

The accompanying notes are an integral part of these financial statements.

Page 21

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
County of Riverside CA,
2.165%, 02/15/2021	$	3,500,000	$	3,506,930
County of St. Lucie FL,
0.030%, 09/01/2028 (Callable 01/04/2021)(4)		15,000,000		15,000,000
County of Suffolk NY:
2.000%, 07/22/2021		4,800,000		4,830,576
2.000%, 08/19/2021		9,000,000		9,065,430
Dallas/Fort Worth International Airport,
5.000%, 11/01/2038 (Callable 11/01/2021)		1,120,000		1,163,568
Delaware River Port Authority,
5.000%, 01/01/2021		5,500,000		5,500,000
Florida Development Finance Corp.,
1.645%, 04/01/2021		505,000		505,505
Garden State Preservation Trust,
0.000%, 11/01/2021		1,000,000		993,700
Glendale-River Hills School District:
1.000%, 04/19/2021		2,050,000		2,055,309
1.000%, 08/23/2021		2,000,000		2,010,420
Gulf Coast Authority:
2.450%, 05/01/2028(4)		2,500,000		2,514,700
0.040%, 06/01/2030 (Callable 01/04/2021)(4)		10,950,000		10,950,000
Howard University,
2.638%, 10/01/2021		925,000		933,047
Illinois Development Finance Authority,
0.550%, 11/01/2044 (Callable 08/03/2021)(4)		6,000,000		6,004,440
Indiana Finance Authority,
3.875%, 08/01/2021		8,500,000		8,665,665
Indianapolis Local Public Improvement Bond Bank,
1.450%, 06/01/2021 (Callable 02/01/2021)		11,000,000		11,000,440
Industrial Development Authority
of the County of Yavapai,
2.800%, 06/01/2027(4)		1,500,000		1,513,965
Jersey City Redevelopment Agency,
3.000%, 05/27/2021		2,000,000		2,021,220
Joplin Industrial Development Authority,
2.154%, 02/15/2022		1,400,000		1,418,340
Kendall County Forest Preserve District,
5.000%, 01/01/2021		2,000,000		2,000,000
Louisiana Public Facilities Authority,
6.750%, 05/01/2041 (Callable 05/01/2021)		3,000,000		3,060,870
Massachusetts Development Finance Agency,
2.450%, 05/01/2027(2)(4)		3,000,000		3,017,640
Massachusetts Educational Financing Authority,
5.000%, 01/01/2021		3,000,000		3,000,000

The accompanying notes are an integral part of these financial statements.

Page 22

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Memphis-Shelby County Airport Authority,
5.000%, 07/01/2021	$	1,000,000	$	1,021,800
Merrimack Valley Regional Transit Authority,
1.500%, 06/25/2021		1,650,000		1,656,881
Metropolitan Transportation Authority:
5.000%, 05/15/2021		4,685,000		4,734,146
5.000%, 05/15/2021		1,365,000		1,379,319
5.000%, 09/01/2021		16,960,000		17,281,392
Miami-Dade County Industrial
Development Authority,
0.550%, 11/01/2041(4)		2,750,000		2,752,035
Minneapolis-Saint Paul
Metropolitan Airports Commission,
5.000%, 01/01/2022		1,000,000		1,044,230
Mississippi Business Finance Corp.,
2.500%, 04/01/2022 (Callable 04/01/2021)		4,000,000		4,016,280
Mizuho Floater/Residual Trust,
0.470%, 11/15/2036(2)(4)		15,200,000		15,200,000
Monroe County Development Authority,
0.060%, 09/01/2037 (Callable 01/04/2021)(4)		10,000,000		10,000,000
Montachusett Regional Transit Authority,
1.500%, 07/30/2021		19,000,000		19,113,810
New Jersey Economic Development Authority:
0.000%, 02/15/2021		12,980,000		12,974,159
5.000%, 06/15/2021		5,000,000		5,101,800
0.000%, 02/15/2022		5,000,000		4,969,800
New Jersey Educational Facilities Authority,
5.000%, 09/01/2021		1,610,000		1,658,220
New Jersey Housing & Mortgage Finance Agency,
0.743%, 04/01/2021		1,080,000		1,080,054
New Jersey Sports & Exposition Authority,
5.000%, 09/01/2021		1,300,000		1,335,087
New York State Dormitory Authority:
4.200%, 01/01/2021		2,170,000		2,170,000
5.000%, 07/01/2021		1,545,000		1,579,824
Penns Grove-Carneys Point Regional School District,
2.000%, 07/09/2021		6,858,000		6,909,298
Pennsylvania Economic
Development Financing Authority,
0.700%, 08/01/2037(4)		7,500,000		7,502,175
Philadelphia Authority for Industrial Development,
3.664%, 04/15/2022		6,750,000		6,877,035
Philadelphia Parking Authority,
5.000%, 09/01/2021 (Callable 02/01/2021)		8,450,000		8,477,463

The accompanying notes are an integral part of these financial statements.

Page 23

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Port of Port Arthur Navigation District:
0.090%, 04/01/2040 (Callable 01/04/2021)(4)	$	8,505,000	$	8,505,000
0.220%, 11/01/2040 (Callable 01/04/2021)(4)		10,000,000		10,000,000
Public Finance Authority,
5.000%, 07/01/2022		2,790,000		2,895,853
Regional Transit Authority,
0.000%, 12/01/2021		1,425,000		1,421,010
Sacramento County Public Financing Authority,
3.543%, 04/01/2021		1,300,000		1,308,983
San Antonio Housing Trust Finance Corp.,
1.400%, 07/01/2022(4)		10,000,000		10,082,700
San Diego Convention Center
Expansion Financing Authority,
0.990%, 04/15/2021		1,000,000		1,001,220
School District of Philadelphia,
5.000%, 09/01/2021		5,000,000		5,146,350
South Carolina Transportation Infrastructure Bank,
0.546%, 10/01/2031
(1 Month LIBOR USD + 0.450%)
(Callable 10/01/2021)(3)		20,500,000		20,472,530
Southwestern Illinois Community
College District No. 522,
0.747%, 12/01/2021		4,255,000		4,255,723
State of Connecticut,
3.000%, 07/01/2021		3,250,000		3,293,485
State of Illinois:
5.000%, 08/01/2021		1,035,000		1,058,494
1.900%, 10/01/2021		19,000,000		18,886,380
Tender Option Bond Trust:
0.470%, 11/15/2045(2)(4)		10,400,000		10,400,000
0.340%, 07/01/2047(2)(4)		2,000,000		2,000,000
0.230%, 08/01/2055 (Callable 02/01/2031)(2)(4)		5,365,000		5,365,000
Tennessee Housing Development Agency,
4.350%, 07/01/2022 (Callable 01/04/2021)		1,495,000		1,495,000
Terrebonne Levee & Conservation District,
0.804%, 06/01/2021		1,000,000		1,001,450
Tobacco Settlement Finance Authority,
0.797%, 06/01/2021		3,000,000		3,000,990
Town of Oyster Bay NY,
3.000%, 02/01/2021		3,420,000		3,426,395
University of Louisville,
5.000%, 09/01/2027 (Callable 09/01/2021)		1,200,000		1,234,320
Westfield-Washington Schools,
2.000%, 07/15/2021		1,120,000		1,129,430

The accompanying notes are an integral part of these financial statements.

Page 24

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Wheaton College,
0.620%, 10/01/2035 (Callable 01/04/2021)(4)	$	5,000,000	$	5,000,000
Winooski School District,
1.250%, 10/15/2021		4,700,000		4,715,698
Total Municipal Bonds
(Cost $500,831,211)				501,335,845		10.9	%
Residential Mortgage-Backed Securities
Non-U.S. Government Agency Issues
Aegis Asset Backed Securities Trust,
Series 2005-4, Class M1, 0.823%, 10/25/2035
(1 Month LIBOR USD + 0.675%)(3)		1,453,061		1,449,760
Arroyo Mortgage Trust,
Series 2019-3, Class A1, 2.962%, 10/25/2048(2)(4)		904,909		932,902
Carrington Mortgage Loan Trust,
Series 2005-NC1, Class M2, 0.928%, 02/26/2035
(1 Month LIBOR USD + 0.780%)(3)		289,244		292,767
Citigroup Mortgage Loan Trust, Inc.,
Series 2007-AMC4, Class A2C, 0.318%, 05/25/2037
(1 Month LIBOR USD + 0.170%)(3)		81,596		81,507
GSAMP Trust:
Series 2005-WMC2, Class A2C, 0.848%, 11/25/2035
(1 Month LIBOR USD + 0.700%)(3)		238,050		239,366
Series 2006-HE4, Class A2C, 0.298%, 06/25/2036
(1 Month LIBOR USD + 0.150%)(3)		194,370		194,178
Home Equity Asset Trust,
Series 2006-2, Class 2A4, 0.768%, 05/25/2036
(1 Month LIBOR USD + 0.620%)(2)(3)		1,194,260		1,190,586
Popular ABS Mortgage Pass-Through Trust,
Series 2006-C, Class A4, 0.398%, 07/25/2036
(1 Month LIBOR USD + 0.250%)(3)		251,473		251,110
RAMP Series Trust,
Series 2007-RZ1, Class A2, 0.308%, 02/25/2037
(1 Month LIBOR USD + 0.160%)(3)		244,848		244,559
Towd Point Mortgage Trust:
Series 2015-4, Class A1, 3.500%, 04/25/2055(2)(4)		1,013,480		1,019,236
Series 2016-4, Class A1, 2.250%, 07/25/2056(2)(4)		5,046,725		5,124,730
Series 2017-1, Class A1, 2.750%, 10/25/2056(2)(4)		8,280,750		8,486,953
Series 2017-5, Class A1, 0.748%, 02/26/2057
(1 Month LIBOR USD + 0.600%)(2)(3)		3,824,934		3,812,680
Series 2017-6, Class A1, 2.750%, 10/25/2057(2)(4)		16,978,636		17,480,932
Total Residential Mortgage-Backed Securities
(Cost $40,798,006)				40,801,266		0.9	%

The accompanying notes are an integral part of these financial statements.

Page 25

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Commercial Mortgage-Backed Securities
Non-U.S. Government Agency Issues
COMM Mortgage Trust:
Series 2012-CR2, Class ASB, 2.752%, 08/17/2045	$	1,038,926	$	1,042,696
Series 2013-LC6, Class ASB, 2.478%, 01/12/2046		449,079		457,423
GS Mortgage Securities Trust:
Series 2011-GC5, Class A4, 3.707%, 08/10/2044		4,542,222		4,562,325
Series 2012-GC6, Class AAB, 3.314%, 01/12/2045		4,544,160		4,564,089
Morgan Stanley Bank of America Merrill Lynch Trust,
Series 2012-C5, Class A4, 3.176%, 08/17/2045		14,000,000		14,431,739
WFRBS Commercial Mortgage Trust:
Series 2012-C8, Class ASB, 2.559%, 08/17/2045		2,660,763		2,681,852
Series 2013-C14, Class ASB, 2.977%, 06/15/2046		308,868		315,476
Total Commercial Mortgage-Backed Securities
(Cost $28,115,512)				28,055,600		0.6	%
Asset Backed Securities
Ally Auto Receivables:
Series 2017-5, Class A3, 1.990%, 03/15/2022		45,916		45,945
Series 2019-2, Class A2, 2.340%, 07/15/2022		1,116,697		1,118,047
Series 2019-4, Class A2, 1.930%, 10/15/2022		7,868,619		7,889,022
Series 2017-5, Class A4, 2.220%, 10/17/2022		4,050,000		4,072,822
Ally Master Owner Trust:
Series 2018-1, Class A2, 2.700%, 01/15/2023		3,065,000		3,067,741
Series 2018-2, Class A, 3.290%, 05/15/2023		11,241,000		11,365,463
Series 2018-4, Class A, 3.300%, 07/15/2023		38,760,000		39,250,054
American Express Credit Account Master Trust:
Series 2018-4, Class A, 2.990%, 12/15/2023		3,351,000		3,385,302
Series 2018-8, Class A, 3.180%, 04/15/2024		4,000,000		4,082,513
BA Credit Card Trust,
Series 2018-A1, Class A1, 2.700%, 07/17/2023		12,090,000		12,126,382
Bank of The West Auto Trust:
Series 2019-1, Class A2, 2.400%, 10/17/2022(2)		426,206		427,537
Series 2018-1, Class A3, 3.430%, 12/15/2022(2)		2,414,506		2,434,013
Series 2017-1, Class A3, 2.110%, 01/15/2023(2)		1,171,555		1,176,418
BMW Vehicle Owner Trust,
Series 2018-A, Class A3, 2.350%, 04/25/2022		935,853		938,288
Capital One Multi-Asset Execution Trust:
Series 2018-A1, Class A1, 3.010%, 02/15/2024		7,440,000		7,499,964
Series 2017-A2, Class A2, 0.569%, 01/15/2025
(1 Month LIBOR USD + 0.410%)(3)		13,500,000		13,543,543
Capital One Prime Auto Receivables Trust,
Series 2019-2, Class A2, 2.060%, 09/15/2022		2,314,787		2,322,484

The accompanying notes are an integral part of these financial statements.

Page 26

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
CarMax Auto Owner Trust:
Series 2019-3, Class A2A, 2.210%, 12/15/2022	$	2,247,867	$	2,258,198
Series 2020-3, Class A2A, 0.490%, 06/15/2023		10,895,000		10,911,690
Series 2018-4, Class A3, 3.360%, 09/15/2023		20,091,146		20,514,517
Citibank Credit Card Issuance Trust,
Series 2018-A1, Class A1, 2.490%, 01/20/2023		20,628,000		20,653,346
CNH Equipment Trust,
Series 2020-A, Class A2, 1.080%, 07/15/2023		1,677,297		1,683,018
Conseco Financial Corp.,
Series 1998-4, Class A6, 6.530%, 04/01/2030(4)		105,733		107,600
Daimler Trucks Retail Trust,
Series 2019-1, Class A3, 2.770%, 08/15/2022(2)		11,448,189		11,578,194
Dell Equipment Finance Trust:
Series 2020-1, Class A2, 2.260%, 06/22/2022(2)		11,025,000		11,153,747
Series 2020-2, Class A2, 0.470%, 10/24/2022(2)		6,000,000		6,010,760
Discover Card Execution Note Trust:
Series 2016-A3, Class A3, 1.850%, 10/16/2023		2,500,000		2,511,788
Series 2019-A9, Class A1, 3.040%, 07/15/2024		33,333,542		34,319,715
Evergreen Credit Card Trust,
Series 2018-1, Class A, 2.950%, 03/15/2023(2)		38,560,000		38,764,044
Ford Credit Auto Lease Trust:
Series 2019-B, Class A2A, 2.280%, 02/15/2022		2,268,575		2,272,370
Series 2020-B, Class A2A, 0.500%, 12/15/2022		7,875,000		7,884,793
Ford Credit Auto Owner Trust:
Series 2017-B, Class A4, 1.870%, 09/15/2022		1,040,692		1,043,627
Series 2020-A, Class A2, 1.030%, 10/15/2022		2,486,491		2,493,382
Series 2019-A, Class A3, 2.780%, 09/15/2023		6,450,000		6,561,467
Series 2016-1, Class A, 2.310%, 08/15/2027(2)		7,795,000		7,813,183
Ford Credit Floorplan Master Owner Trust,
Series 2018-3, Class A1, 3.520%, 10/15/2023		30,925,000		31,711,710
GM Financial Automobile Leasing Trust,
Series 2019-1, Class A4, 3.080%, 12/20/2022		8,775,000		8,860,798
GM Financial Consumer Automobile Receivables Trust:
Series 2018-1, Class A3, 2.320%, 07/18/2022		5,601,223		5,626,453
Series 2018-2, Class A3, 2.810%, 12/16/2022		614,223		620,128
Series 2020-2, Class A2A, 1.500%, 03/16/2023		5,113,695		5,136,206
Series 2020-3, Class A2, 0.350%, 07/16/2023		9,859,478		9,865,193
GMF Floorplan Owner Revolving Trust,
Series 2018-4, Class A1, 3.500%, 09/15/2023(2)		5,000,000		5,113,016
Golden Credit Card Trust,
Series 2018-1A, Class A, 2.620%, 01/15/2023(2)		33,681,000		33,709,811
Honda Auto Receivables Owner Trust,
Series 2019-2, Class A2, 2.570%, 12/21/2021		1,363,088		1,366,283

The accompanying notes are an integral part of these financial statements.

Page 27

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
HPEFS Equipment Trust:
Series 2019-1A, Class A2, 2.190%, 09/20/2029(2)	$	1,789,214	$	1,796,442
Series 2020-2A, Class A2, 0.650%, 07/22/2030(2)		20,118,000		20,157,524
Hyundai Auto Lease Securitization Trust:
Series 2019-A, Class A3, 2.980%, 07/15/2022(2)		4,622,855		4,651,370
Series 2020-B, Class A2, 0.360%, 01/17/2023(2)		9,850,000		9,860,112
Hyundai Auto Receivables Trust:
Series 2020-B, Class A2, 0.380%, 03/15/2023		7,500,000		7,506,898
Series 2020-A, Class A2, 1.510%, 04/15/2023		7,516,089		7,566,716
Series 2017-A, Class A4, 2.090%, 04/17/2023		1,564,881		1,567,291
Marlette Funding Trust,
Series 2020-2A, Class A, 1.020%, 09/16/2030(2)		4,184,982		4,192,027
Mercedes-Benz Auto Lease Trust:
Series 2018-B, Class A3, 3.210%, 09/15/2021		1,887,442		1,890,958
Series 2020-A, Class A2, 1.820%, 03/15/2022		16,895,130		16,950,235
Series 2018-B, Class A4, 3.310%, 07/15/2024		2,505,000		2,521,451
Mercedes-Benz Auto Receivables Trust,
Series 2020-1, Class A2, 0.460%, 03/15/2023		10,625,000		10,639,809
Mercedes-Benz Master Owner Trust:
Series 2019-AA, Class A, 0.509%, 05/15/2023
(1 Month LIBOR USD + 0.350%)(2)(3)		16,515,000		16,531,928
Series 2019-BA, Class A, 2.610%, 05/15/2024(2)		10,765,000		11,121,357
MMAF Equipment Finance LLC,
Series 2020-A, Class A2, 0.740%, 04/09/2024(2)		4,500,000		4,515,090
Nissan Auto Lease Trust,
Series 2020-B, Class A2, 0.340%, 12/15/2022		12,825,000		12,839,191
Nissan Auto Receivables Owner Trust:
Series 2017-C, Class A3, 2.120%, 04/18/2022		1,209,724		1,212,843
Series 2018-C, Class A3, 3.220%, 06/15/2023		13,372,830		13,629,956
Series 2019-A, Class A3, 2.900%, 10/16/2023		24,943,189		25,411,527
PFS Financing Corp.:
Series 2018-B, Class A, 2.890%, 02/15/2023(2)		13,273,000		13,300,649
Series 2018-D, Class A, 3.190%, 04/17/2023(2)		2,091,000		2,105,649
Santander Consumer Auto Receivables Trust:
Series 2020-BA, Class A2, 0.380%, 02/15/2023(2)		5,500,000		5,501,689
Series 2020-A, 1.370%, 10/15/2024(2)		16,718,108		16,880,449
Santander Retail Auto Lease Trust,
Series 2019-A, Class A2, 2.720%, 01/20/2022(2)		1,043,909		1,045,942
SoFi Consumer Loan Program LLC:
Series 2017-3, Class A, 2.770%, 05/26/2026(2)		166,295		166,783
Series 2017-4, Class A, 2.500%, 06/25/2026(2)		2,804,706		2,815,154
Series 2018-3, Class A2, 3.670%, 08/25/2027(2)		548,108		551,740
Series 2018-4, Class A, 3.540%, 11/26/2027(2)		265,317		266,308
Series 2019-2, Class A, 3.010%, 04/25/2028(2)		1,509,727		1,524,926

The accompanying notes are an integral part of these financial statements.

Page 28

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Synchrony Card Funding LLC,
Series 2019-A2, Class A, 2.340%, 06/15/2025	$	11,598,000	$	11,946,573
Synchrony Card Issuance Trust,
Series 2018-A1, Class A, 3.380%, 09/15/2024		1,800,000		1,839,411
Synchrony Credit Card Master Note Trust,
Series 2016-2, Class A, 2.210%, 05/15/2024		31,205,000		31,424,487
Tesla Auto Lease Trust,
Series 2018-B, Class A, 3.710%, 08/20/2021(2)		8,116,273		8,167,682
Towd Point Mortgage Trust,
Series 2019-MH1, Class A1, 3.000%, 11/25/2058(2)(4)		3,135,440		3,214,083
Toyota Auto Receivables Owner Trust:
Series 2017-C, Class A3, 1.780%, 11/15/2021		74,678		74,727
Series 2017-A, Class A4, 2.100%, 09/15/2022		2,549,122		2,550,989
Series 2020-A, Class A2, 1.670%, 11/15/2022		3,793,792		3,816,523
Trillium Credit Card Trust II,
Series 2019-2A, Class A, 3.038%, 01/26/2024(1)(2)		19,365,000		19,399,526
Verizon Owner Trust:
Series 2018-1A, Class A1A, 2.820%, 09/20/2022(2)		10,694,113		10,738,006
Series 2018-A, Class A1A, 3.230%, 04/20/2023		163,971		166,147
Series 2019-A, Class A1A, 2.930%, 09/20/2023		22,756,000		23,197,382
Volkswagen Auto Lease Trust,
Series 2019-A, Class A2A, 2.000%, 03/21/2022		3,550,633		3,567,946
Volkswagen Auto Loan Enhanced Trust,
Series 2020-1, Class A2A, 0.930%, 12/20/2022		2,870,452		2,877,706
Volvo Financial Equipment LLC:
Series 2017-1A, Class A4, 2.210%, 11/15/2021(2)		1,277,029		1,277,896
Series 2018-1A, Class A3, 2.540%, 02/15/2022(2)		1,567,936		1,572,896
Wheels SPV 2 LLC,
Series 2019-1A, Class A2, 2.300%, 05/22/2028(2)		12,361,163		12,479,053
World Financial Network Credit Card Master Trust:
Series 2018-A, Class A, 3.070%, 12/15/2024		13,382,000		13,425,306
Series 2016-A, Class A, 2.030%, 04/15/2025		10,195,000		10,271,615
Series 2018-B, Class A, 3.460%, 07/15/2025		25,000,000		25,547,160
Series 2018-C, Class A, 3.550%, 08/15/2025		32,400,000		33,215,288
World Omni Auto Receivables Trust,
Series 2020-C, Class A2, 0.350%, 12/15/2023		14,000,000		14,013,135
World Omni Automobile Lease Securitization Trust:
Series 2019-A, Class A2, 2.890%, 11/15/2021		36,797		36,834
Series 2018-B, Class A3, 3.190%, 12/15/2021		3,093,791		3,104,156
World Omni Select Auto Trust,
Series 2020-A, Class A2, 0.470%, 06/17/2024		7,500,000		7,511,805
Total Asset Backed Securities
(Cost $869,625,407)				869,448,921		19.0	%
Total Long-Term Investments
(Cost $3,959,413,504)				3,962,692,153		86.5	%

The accompanying notes are an integral part of these financial statements.

Page 29

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Short-Term Investments

	Principal					% of
	Amount		Value			Net Assets
Commercial Paper
American Honda Finance Corp., 0.34%(6), 03/22/2021	$	32,400,000	$	32,375,141
Banco Santander SA, 0.26%(6), 08/23/2021		8,400,000		8,385,798
Banner Health, 0.59%(6), 01/06/2021		25,000,000		24,997,561
Catholic Health Initiatives, 0.10%(6), 01/21/2021		18,000,000		17,998,971
Catholic Health Initiatives, 0.16%(6), 03/03/2021		3,000,000		2,999,168
Catholic Health Initiatives, 0.18%(6), 03/24/2021		13,700,000		13,694,472
Enable Midstream Partners LP, 0.44%(6), 01/14/2021		17,700,000		17,696,985
Enable Midstream Partners LP, 0.45%(6), 02/08/2021		3,000,000		2,998,531
Eni Finance USA, Inc., 0.41%(6), 05/17/2021		18,275,000		18,246,416
Glencore Funding LLC, 0.59%(6), 03/05/2021		19,350,000		19,329,601
Marathon Petroleum Corp.(2), 0.24%(6), 02/01/2021		16,500,000		16,496,436
Nationwide Mutual Insurance Co., 0.34%(6), 07/26/2021		3,400,000		3,393,392
Shell International Finance BV, 0.22%(6), 07/12/2021		16,200,000		16,180,546
Viatris, Inc.(2), 0.65%(6), 03/21/2021		11,200,000		11,183,822
Vodafone Group PLC, 0.15%(6), 01/04/2021		35,000,000		34,999,417
Volkswagen Group of America
Finance LLC, 0.62%(6), 11/10/2021		7,000,000		6,962,207
Walgreens Boots Alliance, Inc., 0.36%(6), 03/04/2021		5,000,000		4,996,824
Walgreens Boots Alliance, Inc., 0.36%(6), 03/03/2021		20,253,000		20,240,374
Walgreens Boots Alliance, Inc., 0.45%(6), 05/18/2021		8,700,000		8,685,059
Walt Disney Co., 0.32%(6), 04/30/2021		17,000,000		16,981,867
Walt Disney Co., 0.33%(6), 07/16/2021		7,350,000		7,336,566
Total Commercial Paper
(Cost $306,040,742)				306,179,154			6.7	%
U.S. Treasury Security
United States Treasury Bill, 0.07%(6), 04/08/2021		210,000,000		209,958,876
Total U.S. Treasury Security
(Cost $209,940,911)				209,958,876			4.6	%
	Shares
Money Market Mutual Fund
First American Government Obligations
Fund, Class U, 0.04%(5)		133,827,441		133,827,441
Total Money Market Mutual Fund
(Cost $133,827,441)				133,827,441			2.9	%
Total Short-Term Investments
(Cost $649,809,094)				649,965,471			14.2	%
Total Investments
(Cost $4,609,222,598)				4,612,657,624			100.7	%
Liabilities in Excess of Other Assets				(33,537,396	)		(0.7	)%
TOTAL NET ASSETS			$	4,579,120,228			100.0	%

The accompanying notes are an integral part of these financial statements.

Page 30

Baird Ultra Short Bond Fund

Schedule of Investments, December 31, 2020

Notes to Schedule of Investments

LIBOR – London Inter-bank Offered Rate

(1)	Foreign security.
(2)	Security as defined in Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program.  Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers.  At December 31, 2020, the value of these securities total $788,386,993, which represents 17.22% of total net assets.
(3)	Variable rate security based on a reference index and spread.  The rate reported is the rate in effect as of December 31, 2020.
(4)	Variable rate security. The coupon is based on an underlying pool of loans. The rate reported is the rate in effect as of December 31, 2020.
(5)	Seven-day yield.
(6)	Effective yield as of December 31, 2020.

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value.  These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability.  These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The accompanying notes are an integral part of these financial statements.

Page 31

Baird Ultra Short Bond Fund

Summary of Fair Value Exposure at December 31, 2020 (cont.)

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Long-Term Investments
U.S. Treasury Securities	$	—	$	875,477,941	$	—	$	875,477,941
Other Government Related Securities		—		4,007,280		—		4,007,280
Corporate Bonds		—		1,643,565,300		—		1,643,565,300
Municipal Bonds		—		501,335,845		—		501,335,845
Residential Mortgage-Backed Securities –
Non-U.S. Government Agency Issues		—		40,801,266		—		40,801,266
Commercial Mortgage-Backed Securities –
Non-U.S. Government Agency Issues		—		28,055,600		—		28,055,600
Asset Backed Securities		—		869,448,921		—		869,448,921
Total Long-Term Investments		—		3,962,692,153		—		3,962,692,153
Short-Term Investment
Commercial Paper		—		306,179,154		—		306,179,154
U.S. Treasury Securities		—		209,958,876		—		209,958,876
Money Market Mutual Fund		133,827,441		—		—		133,827,441
Total Short-Term Investment		133,827,441		516,138,030		—		649,965,471
Total Investments	$	133,827,441	$	4,478,830,183	$	—	$	4,612,657,624

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 32

Baird Short-Term Bond Fund

December 31, 2020 (Unaudited)

The Baird Short-Term Bond Fund seeks an annual rate of total return, before Fund expenses, greater than the annual rate of total return of the Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index. The Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index is an unmanaged, market value weighted index of investment grade, fixed rate debt issues, including government and credit securities, with maturities between one and three years.

Treasury yields fell across the curve in 2020, with the benchmark 10-year Treasury down 100 bps to finish the year at 0.92%, after hitting an all-time [intra-day] record low of 0.31% on March 9. The curve steepened, with the spread between 2-year and 30-year Treasuries increasing from 82 bps to 153 bps during the year, as yields in shorter maturities saw the largest decline. Starting in late February, the coronavirus (COVID-19) affected every aspect of the economy, leading to the swiftest equity bear market in history, with an over 33% peak-to-trough drop in the S&P 500 in just over a month ending March 23, and fixed income markets hitting levels of distress not seen since the Global Financial Crisis (GFC) in 2008. However, unlike 2008, the massive, coordinated monetary and fiscal policy response resulted in a much swifter recovery. U.S. unemployment dropped to 6.7% by year end after peaking at 14.7% in April as businesses reopened, and the Pfizer and Moderna vaccines offered hope for a return to normal sometime in 2021. The S&P 500 ended the year up 16% at record highs and credit spreads tightened through year end, completely erasing the pandemic-related widening in many sectors. The COVID-19 pandemic and the massive government policy response to it essentially created a full market cycle for spreads in the span of a calendar year.

During 2020, the Fund’s Institutional Class Shares generated strong absolute and relative returns and outperformed its benchmark by 90 basis points net of fees.

The primary factors contributing to the Fund’s absolute and relative performance in 2020 include:

• Credit Positioning

 • Positive – Overweight to Investment Grade Credit (increased exposure post widening of the spread)

 • Positive – Active positioning within Investment Grade Credit

  • Positive – Underweight to the Other Government Sector in favor of Corporate Credit including Financials

  • Positive – Security selection, including attractive new issue concessions

• Mortgage-Backed Securities (MBS) & Asset-Backed Securities (ABS) Positioning

 • Positive – Exposure to Asset Backed Securities (ABS) (increased exposure post widening of the spread)

 • Positive – Exposure to Non-Agency Commercial Mortgage-Backed Securities (CMBS) & Non-Agency Residential Mortgage-Backed Securities (RMBS)

We expect the economic impact of COVID-19 to linger well into 2021, particularly as it relates to the travel and hospitality service sectors. Yet, with the massive fiscal stimulus that is already in the pipeline, and likely more coming now that the Democratic Party has full, albeit narrow, control of Washington, above-average economic growth is very likely in 2021. Stronger growth may pressure inflation modestly higher, a goal of the Fed, translating into moderately higher intermediate and long-term rates. With short-term rates still anchored close to zero by the Fed, a steeper yield curve will enable investors to capture some added performance as bonds roll down the curve. We expect the roll-down return to be an important component of total return this year, as well as security selection, sector allocation, and the yield advantage the Fund enjoys above that of its benchmark. Strategic positioning across market sectors and along the yield curve (including the ability to thoughtfully reposition should spreads widen into volatility) will complement the always-important security selection process to help navigate through the current environment.

The Fund remains duration neutral with a modest overweight to Investment Grade corporate credit, particularly Financials. The Fund is also maintaining its allocation in the MBS/ABS sectors at the senior part of the capital structure given attractive relative valuations and the continued broad sector diversification benefit they provide to the overall portfolio. The Fund only purchases investment grade, U.S. dollar denominated securities in the cash bond market (no derivatives) and we believe the Fund is well positioned to add value relative to its benchmark.

Page 33

Baird Short-Term Bond Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

Quality Distribution⁽¹⁾⁽²⁾

	Net Assets	$8,983,218,546
	SEC 30-Day
	Yield(3)
	Institutional Class	0.52%
	Investor Class	0.28%
	Average
	Effective
	Duration	1.91 years
	Average
	Effective
	Maturity	1.99 years
	Annualized
	Expense
Sector Weightings(1)	Ratio(4)
	Institutional Class	0.30%
	Investor Class	0.55%	(5)
	Portfolio
	Turnover Rate	64%
	Number of
	Holdings	560

(1)	Percentages shown are based on the Fund’s total investments.
(2)	The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO).  NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest).
(3)	SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2020.
(4)	Reflects expense ratios as stated in the Fund’s current prospectus.
(5)	Includes 0.25% 12b-1 fee.

Page 34

Baird Short-Term Bond Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on 12/31/10, assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on the Fund’s inception date (09/19/12), assuming reinvestment of all distributions.

Page 35

Baird Short-Term Bond Fund

December 31, 2020 (Unaudited)

Total Returns

		Average Annual
				Since	Since
	One	Five	Ten	Inception	Inception
For the Periods Ended December 31, 2020	Year	Years	Years	(8/31/04)	(9/19/12)
Institutional Class Shares	4.23%	2.83%	2.40%	2.88%	N/A
Investor Class Shares	3.86%	2.55%	N/A	N/A	1.98%
Bloomberg Barclays 1-3 Year U.S.
Government/Credit Bond Index(1)	3.33%	2.21%	1.60%	2.46%	1.61%

(1) The Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government and corporate securities, with maturities between one and three years.  This Index does not reflect any deduction for fees, expenses or taxes.  A direct investment in an index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  The returns  reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund may invest in U.S. dollar denominated foreign securities which involve additional risks such as political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund may also invest in mortgage- and asset-backed securities, which include interest rate and prepayment risks more pronounced than those of other fixed income securities.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results.  Investment returns and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com.  Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 36

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments

	Principal				% of
	Amount		Value		Net Assets
U.S. Treasury Securities
U.S. Treasury Bonds:
2.125%, 12/31/2022	$	663,125,000	$	689,520,485
1.750%, 05/15/2023		1,266,950,000		1,315,153,495
2.750%, 11/15/2023		922,000,000		990,429,687
Total U.S. Treasury Securities
(Cost $2,992,754,892)				2,995,103,667		33.3	%
Other Government Related Securities
Industrial Bank of Korea,
0.814%, 08/02/2021
(3 Month LIBOR USD + 0.600%)(1)(2)(3)		2,150,000		2,153,913
Syngenta Finance NV,
3.933%, 04/23/2021(1)(2)		10,000,000		10,067,117
Total Other Government Related Securities
(Cost $12,150,000)				12,221,030		0.1	%
Corporate Bonds
Industrials
A.P. Meoller – Maersk A/S,
3.750%, 09/22/2024(1)(2)		7,000,000		7,579,895
AbbVie, Inc.:
5.000%, 12/15/2021		20,045,000		20,693,630
3.450%, 03/15/2022		6,975,000		7,193,336
3.850%, 06/15/2024		13,187,000		14,523,451
Agilent Technologies, Inc.,
3.875%, 07/15/2023		7,500,000		8,070,478
Albemarle Corp.,
1.271%, 11/15/2022
(3 Month LIBOR USD + 1.050%)(3)		7,000,000		6,983,418
Alimentation Couche-Tard, Inc.,
2.700%, 07/26/2022(1)(2)		33,135,000		34,247,809
Allegion US Holding Co., Inc.,
3.200%, 10/01/2024		9,075,000		9,692,643
Anglo American Capital PLC:
4.125%, 04/15/2021(1)(2)		10,630,000		10,714,781
4.125%, 09/27/2022(1)(2)		2,775,000		2,922,003
AutoNation, Inc.,
3.350%, 01/15/2021		4,603,000		4,605,604
Bayer US Finance II LLC:
3.500%, 06/25/2021(2)		26,245,000		26,564,072
2.200%, 07/15/2022(2)		2,250,000		2,292,658
Beam Suntory, Inc.,
3.250%, 05/15/2022		10,875,000		11,202,423

The accompanying notes are an integral part of these financial statements.

Page 37

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Becton Dickinson and Co.:
3.125%, 11/08/2021	$	1,000,000	$	1,022,170
2.894%, 06/06/2022		19,186,000		19,831,355
3.363%, 06/06/2024		6,882,000		7,481,248
Bemis Co., Inc.,
4.500%, 10/15/2021		5,375,000		5,491,498
Boeing Co.,
1.950%, 02/01/2024		10,000,000		10,298,785
Boral Finance Pty Ltd.,
3.000%, 11/01/2022(1)(2)		2,475,000		2,529,309
BP Capital Markets America, Inc.,
2.937%, 04/06/2023		24,550,000		25,908,401
Broadcom, Inc.:
3.125%, 10/15/2022		5,060,000		5,295,665
2.650%, 01/15/2023		1,658,000		1,725,084
2.250%, 11/15/2023		15,000,000		15,665,766
3.625%, 01/15/2024		11,225,000		12,132,678
Canadian Natural Resources Ltd.,
2.950%, 01/15/2023(1)		6,500,000		6,798,220
Cardinal Health, Inc.,
3.200%, 06/15/2022		9,922,000		10,285,033
Cargill, Inc.,
1.375%, 07/23/2023(2)		14,400,000		14,759,504
Carlisle Companies, Inc.,
3.750%, 11/15/2022		2,230,000		2,338,000
Carrier Global Corp.,
1.923%, 02/15/2023		7,000,000		7,211,190
Celanese US Holdings LLC,
4.625%, 11/15/2022		3,395,000		3,643,591
Charter Communications Operating LLC,
4.464%, 07/23/2022		22,835,000		24,073,649
Cheniere Corpus Christi Holdings LLC,
7.000%, 06/30/2024		18,650,000		21,778,994
Chevron Phillips Chemical Co. LLC /
Chevron Phillips Chemical Co. LP,
3.300%, 05/01/2023(2)		1,930,000		2,042,830
Choice Hotels International, Inc.,
5.750%, 07/01/2022		4,495,000		4,776,953
Cigna Corp.:
3.400%, 09/17/2021		3,000,000		3,064,493
3.750%, 07/15/2023		2,664,000		2,879,971
CNH Industrial Capital LLC:
4.875%, 04/01/2021		2,554,000		2,578,992
3.875%, 10/15/2021		13,460,000		13,776,047
4.375%, 04/05/2022		4,102,000		4,288,467

The accompanying notes are an integral part of these financial statements.

Page 38

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
CNH Industrial NV,
4.500%, 08/15/2023(1)	$	7,000,000	$	7,632,711
CommonSpirit Health:
2.950%, 11/01/2022		6,349,000		6,631,206
4.200%, 08/01/2023		4,210,000		4,549,576
Constellation Brands, Inc.,
3.200%, 02/15/2023		9,650,000		10,197,360
CVS Health Corp.:
3.350%, 03/09/2021		10,462,000		10,519,367
2.125%, 06/01/2021		5,000,000		5,029,617
3.700%, 03/09/2023		1,360,000		1,454,953
Daimler Finance North America LLC:
3.350%, 05/04/2021(2)		15,000,000		15,143,857
3.400%, 02/22/2022(2)		13,000,000		13,426,214
3.350%, 02/22/2023(2)		1,619,000		1,713,384
1.750%, 03/10/2023(2)		7,000,000		7,186,714
Dell Technologies, Inc.,
4.000%, 07/15/2024(2)		6,090,000		6,714,997
Diamond 1 Finance Corp. / Diamond 2 Finance Corp.,
5.450%, 06/15/2023(2)		20,000,000		22,120,413
Domtar Corp.,
4.400%, 04/01/2022		4,775,000		4,911,908
DXC Technology Co.,
4.450%, 09/18/2022		34,423,000		36,230,823
Eastman Chemical Co.,
3.500%, 12/01/2021		17,550,000		18,026,665
Edward-Elmhurst Healthcare,
3.500%, 05/04/2023		35,000,000		36,777,317
Elanco Animal Health, Inc.,
4.912%, 08/27/2021		32,689,000		33,424,503
Embotelladora Andina SA,
5.000%, 10/01/2023(1)(2)		12,389,000		13,694,088
EMD Finance LLC,
2.950%, 03/19/2022(2)		12,400,000		12,731,325
Encana Corp.,
3.900%, 11/15/2021		32,690,000		33,100,941
Energy Transfer Operating LP,
4.250%, 03/15/2023		15,933,000		16,931,304
Eni SpA,
4.000%, 09/12/2023(1)(2)		3,187,000		3,468,550
EQT Corp.,
4.875%, 11/15/2021		2,755,000		2,823,875
Equifax, Inc.,
3.950%, 06/15/2023		12,294,000		13,282,180

The accompanying notes are an integral part of these financial statements.

Page 39

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
ERAC USA Finance LLC,
2.600%, 12/01/2021(2)	$	1,450,000	$	1,475,074
Exxon Mobil Corp.,
1.571%, 04/15/2023		35,000,000		35,993,956
FedEx Corp.,
3.400%, 01/14/2022		7,000,000		7,221,118
Fiserv, Inc.:
4.750%, 06/15/2021		3,220,000		3,286,124
3.500%, 10/01/2022		6,350,000		6,643,692
Flowserve Corp.,
4.000%, 11/15/2023		1,669,000		1,766,865
FMC Corp.:
3.950%, 02/01/2022		13,172,000		13,551,481
4.100%, 02/01/2024		2,425,000		2,639,629
Ford Motor Credit Co. LLC:
3.200%, 01/15/2021		4,705,000		4,707,353
3.470%, 04/05/2021		2,500,000		2,500,000
2.979%, 08/03/2022		15,000,000		15,250,500
3.087%, 01/09/2023		12,000,000		12,209,340
Fortune Brands Home & Security, Inc.,
4.000%, 09/21/2023		3,805,000		4,145,787
Fox Corp.,
3.666%, 01/25/2022		5,000,000		5,174,682
Fresenius Medical Care US Finance II, Inc.,
5.875%, 01/31/2022(2)		2,947,000		3,103,685
Fresenius Medical Care US Finance, Inc.,
5.750%, 02/15/2021(2)		4,907,000		4,934,247
Fresenius US Finance II, Inc.,
4.500%, 01/15/2023(2)		2,828,000		3,003,560
General Electric Co.,
3.375%, 03/11/2024		9,475,000		10,293,959
General Mills, Inc.,
3.200%, 04/16/2021		5,000,000		5,038,368
General Motors Financial Co., Inc.:
4.200%, 03/01/2021		1,215,000		1,217,988
3.550%, 04/09/2021		4,750,000		4,786,775
3.200%, 07/06/2021		8,500,000		8,591,425
4.200%, 11/06/2021		5,000,000		5,153,586
3.550%, 07/08/2022		5,000,000		5,214,824
1.700%, 08/18/2023		12,000,000		12,309,041
5.100%, 01/17/2024		2,925,000		3,273,215
Genpact Luxembourg Sarl,
3.700%, 04/01/2022(1)		5,511,000		5,619,036
Gilead Sciences, Inc.,
0.750%, 09/29/2023		20,275,000		20,336,617

The accompanying notes are an integral part of these financial statements.

Page 40

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Glencore Finance (Canada) Ltd.:
4.950%, 11/15/2021(1)(2)	$	18,000,000	$	18,718,658
4.250%, 10/25/2022(1)(2)		7,555,000		8,047,370
Glencore Funding LLC:
4.125%, 05/30/2023(2)		7,121,000		7,701,006
4.625%, 04/29/2024(2)		7,500,000		8,375,862
Global Payments, Inc.:
3.800%, 04/01/2021		30,693,000		30,861,928
3.750%, 06/01/2023		4,550,000		4,863,617
Gray Oak Pipeline LLC,
2.000%, 09/15/2023(2)		7,000,000		7,108,938
Grupo Bimbo SAB de CV:
4.500%, 01/25/2022(1)(2)		18,907,000		19,647,965
3.875%, 06/27/2024(1)(2)		6,750,000		7,385,985
Gulf South Pipeline Co. LP,
4.000%, 06/15/2022		3,000,000		3,088,677
HCA, Inc.:
4.750%, 05/01/2023		20,093,000		21,912,856
5.000%, 03/15/2024		14,570,000		16,390,862
Hewlett Packard Enterprise Co.:
3.500%, 10/05/2021		5,000,000		5,105,598
2.250%, 04/01/2023		23,000,000		23,838,040
4.450%, 10/02/2023		11,109,000		12,220,836
Huntsman International LLC,
5.125%, 11/15/2022		4,500,000		4,810,589
Hutchison Whampoa International Ltd.,
4.625%, 01/13/2022(1)(2)		8,200,000		8,518,822
Hyundai Capital America:
3.450%, 03/12/2021(2)		5,000,000		5,024,750
2.450%, 06/15/2021(2)		1,000,000		1,007,890
3.750%, 07/08/2021(2)		2,650,000		2,688,714
3.950%, 02/01/2022(2)		5,024,000		5,190,589
3.000%, 06/20/2022(2)		5,000,000		5,157,549
2.850%, 11/01/2022(2)		6,000,000		6,217,791
1.250%, 09/18/2023(2)		15,000,000		15,177,784
IDEX Corp.,
4.200%, 12/15/2021		14,244,000		14,610,035
IHS Markit Ltd.,
5.000%, 11/01/2022(1)(2)		9,613,000		10,278,795
Infor, Inc.,
1.450%, 07/15/2023(2)		28,072,000		28,525,575
Inversiones CMPC SA,
4.375%, 05/15/2023(1)(2)		2,325,000		2,472,219
Johnson Controls International PLC,
3.625%, 07/02/2024(1)(7)		1,651,000		1,790,786

The accompanying notes are an integral part of these financial statements.

Page 41

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Kerry Group Financial Services Unlimited Co.,
3.200%, 04/09/2023(1)(2)	$	36,325,000	$	38,118,125
Keurig Dr Pepper, Inc.,
2.530%, 11/15/2021		23,880,000		24,320,434
Kinder Morgan Energy Partners LP,
5.000%, 10/01/2021		13,000,000		13,280,888
Kinder Morgan, Inc.,
5.625%, 11/15/2023(2)		9,060,000		10,221,143
Kraft Heinz Foods Co.,
4.000%, 06/15/2023		29,000,000		30,838,007
Leggett & Platt, Inc.,
3.400%, 08/15/2022		10,000,000		10,320,365
Leidos, Inc.,
2.950%, 05/15/2023(2)		27,875,000		29,327,480
Lennar Corp.,
4.875%, 12/15/2023		5,000,000		5,525,000
Lennox International, Inc.,
3.000%, 11/15/2023		16,160,000		17,032,640
LYB International Finance III LLC,
1.238%, 10/01/2023
(3 Month LIBOR USD + 1.000%)(3)		20,000,000		20,034,651
Marathon Petroleum Corp.,
4.500%, 05/01/2023		10,000,000		10,858,255
Marriott International, Inc.,
2.125%, 10/03/2022		10,000,000		10,152,859
Masco Corp.,
5.950%, 03/15/2022		10,800,000		11,499,425
Maxim Integrated Products, Inc.,
3.375%, 03/15/2023		2,190,000		2,305,512
Microchip Technology, Inc.:
3.922%, 06/01/2021		18,102,000		18,359,034
2.670%, 09/01/2023(2)		3,100,000		3,242,179
0.972%, 02/15/2024(2)		23,775,000		23,833,196
Micron Technology, Inc.:
2.497%, 04/24/2023		36,364,000		37,891,936
4.640%, 02/06/2024		3,700,000		4,119,791
Midwest Connector Capital Co. LLC,
3.625%, 04/01/2022(2)		22,750,000		23,148,535
Mondelez International, Inc.,
2.125%, 04/13/2023		10,000,000		10,386,475
Mosaic Co.:
3.750%, 11/15/2021		2,850,000		2,906,652
3.250%, 11/15/2022		6,443,000		6,732,894
MPLX LP,
3.500%, 12/01/2022		6,403,000		6,724,804

The accompanying notes are an integral part of these financial statements.

Page 42

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Mylan, Inc.,
3.125%, 01/15/2023(2)	$	32,660,000	$	34,281,650
Newell Brands, Inc.,
3.850%, 04/01/2023		33,713,000		35,361,229
Newfield Exploration Co.,
5.750%, 01/30/2022		8,410,000		8,735,060
Newmont Goldcorp Corp.,
3.625%, 06/09/2021		4,900,000		4,943,971
Nissan Motor Acceptance Corp.,
3.450%, 03/15/2023(2)		1,585,000		1,654,433
Nissan Motor Co. Ltd.,
3.043%, 09/15/2023(1)(2)		10,000,000		10,455,947
Northern Border Pipeline Co.,
7.500%, 09/15/2021		4,500,000		4,711,543
Nutrien Ltd.:
3.150%, 10/01/2022(1)		1,000,000		1,040,037
1.900%, 05/13/2023(1)		19,400,000		20,039,151
nVent Finance Sarl,
3.950%, 04/15/2023(1)		12,565,000		13,231,217
NXP Semiconductors NV:
3.875%, 09/01/2022(1)(2)		10,862,000		11,447,962
4.625%, 06/01/2023(1)(2)		19,023,000		20,792,667
Occidental Petroleum Corp.:
1.671%, 08/15/2022
(3 Month LIBOR USD + 1.450%)(3)		4,250,000		4,165,000
2.700%, 08/15/2022		17,650,000		17,672,063
2.700%, 02/15/2023		10,000,000		9,990,500
Owens Corning,
4.200%, 12/15/2022		924,000		971,662
Panasonic Corp.,
2.536%, 07/19/2022(1)(2)		15,000,000		15,419,421
PayPal Holdings, Inc.,
1.350%, 06/01/2023		6,400,000		6,553,054
Penske Truck Leasing Co.:
3.650%, 07/29/2021(2)		5,000,000		5,077,169
4.250%, 01/17/2023(2)		10,000,000		10,743,875
2.700%, 03/14/2023(2)		1,500,000		1,568,316
4.125%, 08/01/2023(2)		1,350,000		1,467,352
Phillips 66,
3.700%, 04/06/2023		9,800,000		10,495,604
POSCO:
2.375%, 01/17/2023(1)(2)		35,000,000		36,069,250
4.000%, 08/01/2023(1)(2)		5,000,000		5,391,480
Ralph Lauren Corp.,
1.700%, 06/15/2022		3,000,000		3,054,574

The accompanying notes are an integral part of these financial statements.

Page 43

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Reckitt Benckiser Treasury Services PLC:
0.798%, 06/24/2022
(3 Month LIBOR USD + 0.560%)(1)(2)(3)	$	2,000,000	$	2,009,227
2.375%, 06/24/2022(1)(2)		30,000,000		30,850,635
Regency Energy Partners LP /
Regency Energy Finance Corp.:
5.000%, 10/01/2022		1,430,000		1,517,471
4.500%, 11/01/2023		13,121,000		14,206,394
Reliance Industries Ltd.,
5.400%, 02/14/2022(1)(2)		5,000,000		5,235,033
Roper Technologies, Inc.,
3.125%, 11/15/2022		10,000,000		10,455,154
Royalty Pharma PLC,
0.750%, 09/02/2023(1)(2)		15,000,000		15,071,697
RPM International, Inc.,
3.450%, 11/15/2022		2,508,000		2,605,193
Ryder System, Inc.,
2.875%, 06/01/2022		5,000,000		5,165,027
Sabine Pass Liquefaction LLC:
5.625%, 04/15/2023		15,800,000		17,358,343
5.750%, 05/15/2024		6,463,000		7,389,099
Schneider Electric SE,
2.950%, 09/27/2022(1)(2)		8,824,000		9,206,192
Seagate HDD Cayman:
4.750%, 06/01/2023(1)		12,400,000		13,393,860
4.875%, 03/01/2024(1)		2,500,000		2,715,500
Shell International Finance BV,
3.500%, 11/13/2023(1)		5,000,000		5,442,784
Shire Acquisitions Investments Ireland DAC:
2.400%, 09/23/2021(1)		5,366,000		5,435,979
2.875%, 09/23/2023(1)		2,145,000		2,274,620
Smithfield Foods, Inc.:
2.650%, 10/03/2021(2)		17,740,000		17,896,803
3.350%, 02/01/2022(2)		4,023,000		4,078,299
Smiths Group PLC,
3.625%, 10/12/2022(1)(2)		17,604,000		18,446,176
Sociedad Quimica y Minera de Chile SA,
3.625%, 04/03/2023(1)(2)		3,000,000		3,147,030
Sonoco Products Co.,
4.375%, 11/01/2021		855,000		872,473
Spirit AeroSystems, Inc.:
1.017%, 06/15/2021
(3 Month LIBOR USD + 0.800%)(3)		9,625,000		9,503,356
3.950%, 06/15/2023		3,515,000		3,444,700

The accompanying notes are an integral part of these financial statements.

Page 44

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
SSM Health Care Corp.,
3.688%, 06/01/2023	$	16,500,000	$	17,620,927
Starbucks Corp.,
1.300%, 05/07/2022		5,000,000		5,069,953
Suncor Energy, Inc.,
2.800%, 05/15/2023(1)		10,000,000		10,521,782
Suntory Holdings Ltd.,
2.550%, 06/28/2022(1)(2)		25,600,000		26,304,881
Takeda Pharmaceutical Co. Ltd.,
2.450%, 01/18/2022(1)(2)		13,000,000		13,253,752
TC PipeLines LP,
4.375%, 03/13/2025		4,125,000		4,652,392
Telefonica Emisiones SA,
5.462%, 02/16/2021(1)		12,577,000		12,647,442
Teva Pharmaceutical Finance Netherlands III BV,
2.200%, 07/21/2021(1)		15,654,000		15,614,865
Time Warner Cable LLC,
4.000%, 09/01/2021		9,706,000		9,843,773
Timken Co.,
3.875%, 09/01/2024		30,952,000		33,262,094
Toll Road Investors Partnership II LP,
0.000%, 02/15/2022(2)		26,200,000		25,241,164
Toyota Motor Credit Corp.,
2.900%, 03/30/2023		23,175,000		24,516,744
TransCanada PipeLines Ltd.,
9.875%, 01/01/2021(1)		1,025,000		1,025,000
TTX Co.,
4.400%, 05/01/2021(2)		2,100,000		2,126,164
Valero Energy Corp.:
2.700%, 04/15/2023		19,400,000		20,246,087
1.200%, 03/15/2024		20,000,000		20,184,081
Verisk Analytics, Inc.,
5.800%, 05/01/2021		9,011,000		9,165,052
Verizon Communications, Inc.,
2.946%, 03/15/2022		31,030,000		32,001,012
VF Corp.,
2.050%, 04/23/2022		32,900,000		33,606,693
Vodafone Group PLC,
1.220%, 01/16/2024
(3 Month LIBOR USD + 0.990%)(1)(3)		15,000,000		15,201,781
Volkswagen Group of America Finance LLC:
4.000%, 11/12/2021(2)		24,700,000		25,454,027
3.125%, 05/12/2023(2)		7,000,000		7,393,327
0.875%, 11/22/2023(2)		10,000,000		10,056,334

The accompanying notes are an integral part of these financial statements.

Page 45

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Vulcan Materials Co.,
0.875%, 03/01/2021
(3 Month LIBOR USD + 0.650%)(3)	$	16,433,000	$	16,439,958
Wabtec Corp.,
4.400%, 03/15/2024		3,125,000		3,419,922
WestRock RKT LLC,
4.900%, 03/01/2022		4,100,000		4,308,177
Williams Companies, Inc.:
7.875%, 09/01/2021		3,065,000		3,213,341
3.600%, 03/15/2022		4,750,000		4,903,211
3.350%, 08/15/2022		235,000		244,408
3.700%, 01/15/2023		12,537,000		13,280,757
4.300%, 03/04/2024		15,000,000		16,528,504
Zimmer Biomet Holdings, Inc.:
0.989%, 03/19/2021
(3 Month LIBOR USD + 0.750%)(3)		307,000		307,000
3.700%, 03/19/2023		6,307,000		6,728,004
Zimmer Holdings, Inc.,
3.150%, 04/01/2022		2,690,000		2,766,460
Zoetis, Inc.,
3.250%, 02/01/2023		13,085,000		13,763,947
Total Industrials
(Cost $2,523,599,362)				2,588,018,483		28.8	%
Utilities
Ausgrid Finance Pty Ltd.,
3.850%, 05/01/2023(1)(2)		9,979,000		10,537,544
Dominion Energy, Inc.,
2.450%, 01/15/2023(2)		30,000,000		31,212,917
EDP Finance BV:
5.250%, 01/14/2021(1)(2)		2,840,000		2,843,301
3.625%, 07/15/2024(1)(2)		35,091,000		38,297,312
Enel Finance International NV:
2.875%, 05/25/2022(1)(2)		28,583,000		29,491,125
4.250%, 09/14/2023(1)(2)		1,100,000		1,202,559
Exelon Corp.,
2.450%, 04/15/2021		955,000		958,747
ITC Holdings Corp.,
4.050%, 07/01/2023		8,000,000		8,619,471
Jersey Central Power & Light Co.,
4.700%, 04/01/2024(2)		3,000,000		3,280,785
Orange Cogen Funding Corp.,
8.175%, 03/15/2022(2)		2,918,505		3,021,251
Total Utilities
(Cost $126,674,935)				129,465,012		1.4	%

The accompanying notes are an integral part of these financial statements.

Page 46

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Financials
AerCap Holdings NV:
4.450%, 12/16/2021(1)	$	25,000,000	$	25,747,006
3.300%, 01/23/2023(1)		8,000,000		8,347,623
Aetna, Inc.,
2.800%, 06/15/2023		2,000,000		2,104,308
AIG Global Funding,
2.300%, 07/01/2022(2)		8,775,000		9,012,287
Air Lease Corp.:
3.875%, 04/01/2021		6,885,000		6,919,574
3.375%, 06/01/2021		3,000,000		3,031,992
2.625%, 07/01/2022		1,609,000		1,650,404
2.750%, 01/15/2023		21,150,000		21,862,205
Ally Financial, Inc.:
4.625%, 05/19/2022		16,661,000		17,561,578
1.450%, 10/02/2023		27,100,000		27,664,197
Ameriprise Financial, Inc.,
3.000%, 03/22/2022		6,300,000		6,505,795
Assurant, Inc.:
1.501%, 03/26/2021
(3 Month LIBOR USD + 1.250%)(3)		1,276,000		1,276,017
4.200%, 09/27/2023		4,099,000		4,483,583
Banco Bilbao Vizcaya Argentaria SA,
0.875%, 09/18/2023(1)		27,000,000		27,189,404
Bank of America Corp.:
3.499%, 05/17/2022
(3 Month LIBOR USD + 0.630%)(3)		5,000,000		5,059,247
2.816%, 07/21/2023
(3 Month LIBOR USD + 0.930%)(3)		10,000,000		10,384,310
3.550%, 03/05/2024
(3 Month LIBOR USD + 0.780%)(3)		5,000,000		5,341,448
3.864%, 07/23/2024
(3 Month LIBOR USD + 0.940%)(3)		5,275,000		5,719,163
Bank of Nova Scotia,
1.625%, 05/01/2023(1)		30,000,000		30,863,234
Banque Federative du Credit Mutuel SA:
2.700%, 07/20/2022(1)(2)		3,000,000		3,105,523
2.125%, 11/21/2022(1)(2)		18,000,000		18,587,522
Barclays Bank PLC:
10.180%, 06/12/2021(1)(2)		7,179,000		7,466,509
1.700%, 05/12/2022(1)		5,000,000		5,088,426
Barclays PLC:
3.250%, 01/12/2021(1)		10,950,000		10,955,909
4.610%, 02/15/2023
(3 Month LIBOR USD + 1.400%)(1)(3)		7,000,000		7,307,539

The accompanying notes are an integral part of these financial statements.

Page 47

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Barclays PLC: (cont.)
1.007%, 12/10/2024
(1 Year CMT Rate + 0.800%)(1)(3)	$	6,250,000	$	6,294,312
3.932%, 05/07/2025
(3 Month LIBOR USD + 1.610%)(1)(3)		1,000,000		1,093,995
BBVA USA,
2.875%, 06/29/2022		18,861,000		19,545,312
BNP Paribas SA:
2.950%, 05/23/2022(1)(2)		23,125,000		23,947,883
3.500%, 03/01/2023(1)(2)		10,794,000		11,486,173
BNZ International Funding Ltd.:
2.900%, 02/21/2022(1)(2)		1,950,000		2,007,385
3.375%, 03/01/2023(1)(2)		15,305,000		16,253,815
BPCE SA:
3.000%, 05/22/2022(1)(2)		12,127,000		12,549,722
5.700%, 10/22/2023(1)(2)		17,793,000		20,138,800
5.150%, 07/21/2024(1)(2)		16,000,000		18,219,792
Brown & Brown, Inc.,
4.200%, 09/15/2024		1,000,000		1,113,621
Canadian Imperial Bank of Commerce,
2.606%, 07/22/2023
(3 Month LIBOR USD + 0.785%)(1)(3)		36,050,000		37,292,225
Cantor Fitzgerald LP,
6.500%, 06/17/2022(2)		1,177,000		1,271,728
Capital One NA,
3.375%, 02/15/2023		34,182,000		36,121,906
Citigroup, Inc.,
1.678%, 05/15/2024 (SOFR + 1.667%)(3)		25,000,000		25,752,774
Citizens Bank NA,
3.250%, 02/14/2022		3,000,000		3,088,621
Cooperatieve Rabobank UA:
3.950%, 11/09/2022(1)		37,273,000		39,570,540
4.625%, 12/01/2023(1)		5,000,000		5,572,758
Credit Agricole SA:
3.375%, 01/10/2022(1)(2)		19,895,000		20,500,267
3.750%, 04/24/2023(1)(2)		3,380,000		3,628,358
Credit Suisse Group AG:
3.574%, 01/09/2023(1)(2)		11,400,000		11,745,511
2.997%, 12/14/2023
(3 Month LIBOR USD + 1.200%)(1)(2)(3)		18,000,000		18,820,574
Credit Suisse Group Funding Guernsey Ltd.,
3.800%, 09/15/2022(1)		4,650,000		4,911,284
CyrusOne LP / CyrusOne Finance Corp.,
2.900%, 11/15/2024		11,549,000		12,329,828

The accompanying notes are an integral part of these financial statements.

Page 48

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Daiwa Securities Group, Inc.,
3.129%, 04/19/2022(1)(2)	$	9,750,000	$	10,064,145
Danske Bank A/S:
3.875%, 09/12/2023(1)(2)		8,500,000		9,158,953
1.171%, 12/08/2023
(1 Year CMT Rate + 1.030%(1)(2)(3)		26,375,000		26,493,780
DBS Group Holdings Ltd.,
2.850%, 04/16/2022(1)(2)		10,000,000		10,297,177
Deutsche Bank AG:
3.125%, 01/13/2021(1)		5,515,000		5,517,486
3.150%, 01/22/2021(1)		7,400,000		7,408,208
4.250%, 10/14/2021(1)		5,400,000		5,537,305
5.000%, 02/14/2022(1)		10,000,000		10,455,287
2.222%, 09/18/2024 (SOFR + 2.159%)(1)(3)		17,000,000		17,488,558
Discover Bank:
3.350%, 02/06/2023		7,964,000		8,403,515
4.200%, 08/08/2023		17,405,000		19,029,142
Discover Financial Services,
5.200%, 04/27/2022		10,443,000		11,064,906
F.N.B. Corporation,
2.200%, 02/24/2023		16,075,000		16,373,352
Fifth Third Bancorp,
1.625%, 05/05/2023		15,000,000		15,471,327
First Horizon National Corp.,
3.550%, 05/26/2023		30,000,000		31,874,332
GATX Corp.,
4.350%, 02/15/2024		2,650,000		2,925,313
Goldman Sachs Group, Inc.:
3.000%, 04/26/2022		5,000,000		5,040,572
2.876%, 10/31/2022
(3 Month LIBOR USD + 0.821%)(3)		12,000,000		12,243,536
2.908%, 06/05/2023
(3 Month LIBOR USD + 1.053%)(3)		8,280,000		8,574,358
2.905%, 07/24/2023
(3 Month LIBOR USD + 0.990%)(3)		14,200,000		14,748,678
HSBC Holdings PLC,
3.803%, 03/11/2025
(3 Month LIBOR USD + 1.211%)(1)(3)		28,200,000		30,789,477
Huntington National Bank,
3.250%, 05/14/2021		5,000,000		5,041,222
ING Groep NV,
3.150%, 03/29/2022(1)		3,700,000		3,826,496
Invesco Finance PLC,
3.125%, 11/30/2022(1)		9,377,000		9,848,238

The accompanying notes are an integral part of these financial statements.

Page 49

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Jefferies Group LLC,
5.125%, 01/20/2023	$	30,883,000	$	33,737,659
KeyBank NA,
3.180%, 05/22/2022		25,343,000		26,276,597
LeasePlan Corp. NV,
2.875%, 10/24/2024(1)(2)		210,000		221,898
Lexington Realty Trust,
4.250%, 06/15/2023		10,962,000		11,674,534
Liberty Mutual Group, Inc.,
4.950%, 05/01/2022(2)		3,000,000		3,174,500
Lloyds Bank PLC:
3.000%, 01/11/2022(1)		10,000,000		10,256,801
1.326%, 06/15/2023
(1 Year CMT Rate + 1.100%)(1)(3)		9,400,000		9,503,592
2.907%, 11/07/2023
(3 Month LIBOR USD + 0.810%)(1)(3)		21,704,000		22,675,036
Macquarie Bank Ltd.:
6.625%, 04/07/2021(1)(2)		1,965,000		1,995,670
2.100%, 10/17/2022(1)(2)		17,600,000		18,153,772
Macquarie Group Ltd.,
3.189%, 11/28/2023
(3 Month LIBOR USD + 1.023%)(1)(2)(3)		4,000,000		4,181,605
Massachusetts Mutual Life Insurance Co.,
7.625%, 11/15/2023(2)		9,035,000		10,235,947
Mitsubishi UFJ Financial Group, Inc.:
2.623%, 07/18/2022(1)		10,000,000		10,337,377
0.848%, 09/15/2024
(1 Year CMT Rate + 0.680%)(1)(3)		20,000,000		20,119,256
Mitsubishi UFJ Lease & Finance Co. Ltd.:
3.406%, 02/28/2022(1)(2)		5,200,000		5,348,201
2.652%, 09/19/2022(1)(2)		3,000,000		3,089,984
Mizuho Financial Group, Inc.:
2.953%, 02/28/2022(1)		8,700,000		8,960,373
1.241%, 07/10/2024
(3 Month LIBOR USD + 0.990%)(1)(3)		14,700,000		14,943,915
0.849%, 09/08/2024
(3 Month LIBOR USD + 0.610%)(1)(3)		25,075,000		25,227,757
Morgan Stanley,
3.737%, 04/24/2024
(3 Month LIBOR USD + 0.847%)(3)		34,242,000		36,842,937
National Bank of Canada,
2.100%, 02/01/2023(1)		36,075,000		37,297,584
National Securities Clearing Corp.,
1.200%, 04/23/2023(2)		27,000,000		27,538,797

The accompanying notes are an integral part of these financial statements.

Page 50

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Nationwide Building Society:
2.000%, 01/27/2023(1)(2)	$	4,980,000	$	5,138,707
3.622%, 04/26/2023
(3 Month LIBOR USD + 1.181%)(1)(2)(3)		18,635,000		19,356,500
3.766%, 03/08/2024
(3 Month LIBOR USD + 1.064%)(1)(2)(3)		9,670,000		10,287,664
Nationwide Financial Services, Inc.,
5.375%, 03/25/2021(2)		1,797,000		1,816,523
New York Life Global Funding,
1.100%, 05/05/2023(2)		14,425,000		14,676,501
Nordea Bank AB:
4.875%, 05/13/2021(1)(2)		16,080,000		16,327,371
4.250%, 09/21/2022(1)(2)		14,785,000		15,694,657
3.750%, 08/30/2023(1)(2)		3,725,000		4,026,223
Park Aerospace Holdings Ltd.,
4.500%, 03/15/2023(1)(2)		7,746,000		8,117,227
People’s United Financial, Inc.,
3.650%, 12/06/2022		6,329,000		6,629,712
Protective Life Global Funding,
1.082%, 06/09/2023(2)		15,900,000		16,175,278
Prudential Funding LLC,
6.750%, 09/15/2023(2)		8,492,000		9,716,653
Reliance Standard Life Global Funding II:
2.625%, 07/22/2022(2)		13,625,000		14,004,683
2.150%, 01/21/2023(2)		15,000,000		15,377,340
Royal Bank of Canada,
1.600%, 04/17/2023(1)		14,400,000		14,808,237
Royal Bank of Scotland Group PLC:
3.498%, 05/15/2023
(3 Month LIBOR USD + 1.480%)(1)(3)		13,000,000		13,497,231
3.875%, 09/12/2023(1)		8,187,000		8,883,199
4.519%, 06/25/2024
(3 Month LIBOR USD + 1.550%)(1)(3)		2,384,000		2,602,876
Royal Bank of Scotland PLC,
6.125%, 01/11/2021(1)		9,667,000		9,676,114
Santander Holdings USA, Inc.:
4.450%, 12/03/2021		7,500,000		7,744,608
3.400%, 01/18/2023		7,114,000		7,472,418
Santander UK Group Holdings PLC:
3.125%, 01/08/2021(1)		3,500,000		3,500,757
2.875%, 08/05/2021(1)		2,970,000		3,011,596
3.571%, 01/10/2023(1)		2,500,000		2,576,026
3.373%, 01/05/2024
(3 Month LIBOR USD + 1.080%)(1)(3)		10,000,000		10,524,622

The accompanying notes are an integral part of these financial statements.

Page 51

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Santander UK PLC,
5.000%, 11/07/2023(1)(2)	$	1,100,000	$	1,214,241
Skandinaviska Enskilda Banken AB,
2.200%, 12/12/2022(1)(2)		17,825,000		18,467,368
SMBC Aviation Capital Finance DAC:
2.650%, 07/15/2021(1)(2)		1,950,000		1,970,363
4.125%, 07/15/2023(1)(2)		1,960,000		2,092,568
Societe Generale SA:
4.250%, 09/14/2023(1)(2)		8,500,000		9,270,087
5.000%, 01/17/2024(1)(2)		2,800,000		3,090,707
3.875%, 03/28/2024(1)(2)		8,500,000		9,267,451
2.625%, 10/16/2024(1)(2)		14,000,000		14,834,160
Standard Chartered PLC:
3.050%, 01/15/2021(1)(2)		17,471,000		17,484,113
2.744%, 09/10/2022
(3 Month LIBOR USD + 1.200%)(1)(2)(3)		10,000,000		10,142,032
4.247%, 01/20/2023
(3 Month LIBOR USD + 1.150%)(1)(2)(3)		5,486,000		5,688,970
1.319%, 10/14/2023
(1 Year CMT Rate + 1.170%)(1)(2)(3)		2,525,000		2,550,250
3.885%, 03/15/2024
(3 Month LIBOR USD + 1.080%)(1)(2)(3)		13,450,000		14,306,695
State Street Corp.,
2.825%, 03/30/2023 (SOFR + 2.690%)(3)		13,175,000		13,597,452
Stifel Financial Corp.,
4.250%, 07/18/2024		3,021,000		3,394,123
SunTrust Banks, Inc.,
2.800%, 05/17/2022		18,000,000		18,591,705
Synchrony Financial:
3.750%, 08/15/2021		8,839,000		8,965,517
2.850%, 07/25/2022		25,219,000		26,042,379
4.375%, 03/19/2024		8,000,000		8,807,734
Synovus Bank,
2.289%, 02/10/2023 (SOFR + 0.945%)(3)		7,000,000		7,088,966
Trinity Acquisition PLC,
3.500%, 09/15/2021(1)		18,183,000		18,508,747
UBS AG,
1.750%, 04/21/2022(1)(2)		15,000,000		15,266,892
UBS Group AG,
1.008%, 07/30/2024
(1 Year CMT Rate + 0.830%)(1)(2)(3)		6,000,000		6,058,014
UBS Group Funding Switzerland AG,
2.859%, 08/15/2023
(3 Month LIBOR USD + 0.954%)(1)(2)(3)		7,200,000		7,464,042

The accompanying notes are an integral part of these financial statements.

Page 52

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
USAA Capital Corp.,
1.500%, 05/01/2023(2)	$	6,000,000	$	6,154,520
WEA Finance LLC,
3.150%, 04/05/2022(2)		12,750,000		12,967,201
Wells Fargo & Co.:
3.069%, 01/24/2023		4,650,000		4,782,718
3.750%, 01/24/2024		9,840,000		10,742,225
1.654%, 06/02/2024 (SOFR + 1.600%)(3)		30,000,000		30,836,504
Willis North America, Inc.,
3.600%, 05/15/2024		2,600,000		2,838,960
Willis Towers Watson PLC,
5.750%, 03/15/2021(1)		13,585,000		13,721,799
Zions Bancorp NA:
3.500%, 08/27/2021		11,700,000		11,922,123
3.350%, 03/04/2022		20,000,000		20,583,390
Total Financials
(Cost $1,815,476,446)				1,866,317,881		20.8	%
Total Corporate Bonds
(Cost $4,465,750,743)				4,583,801,376		51.0	%
Municipal Bonds
Bartow County Development Authority,
1.550%, 08/01/2043		10,000,000		10,159,600
Bloomington Redevelopment District,
2.400%, 08/01/2024		785,000		794,137
Brazos Higher Education Authority, Inc.:
2.378%, 04/01/2021		675,000		677,909
2.427%, 04/01/2022		1,320,000		1,349,740
Bucks County Industrial Development Authority,
2.750%, 12/01/2022		5,000,000		5,216,000
Burke County Development Authority,
1.550%, 12/01/2049(4)		6,730,000		6,837,411
Central Texas Turnpike System,
1.980%, 08/15/2042(4)		8,280,000		8,357,998
Chandler Industrial Development Authority,
5.000%, 06/01/2049(4)		2,000,000		2,300,340
Chicago Transit Authority:
1.708%, 12/01/2022		1,000,000		1,015,860
1.838%, 12/01/2023		1,000,000		1,025,600
City of Houston TX,
1.054%, 07/01/2023		6,000,000		6,020,760
City of Johnson TN,
7.850%, 03/01/2024		4,890,000		5,352,545

The accompanying notes are an integral part of these financial statements.

Page 53

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Ontario CA:
2.071%, 06/01/2022	$	1,095,000	$	1,109,301
2.216%, 06/01/2023		1,300,000		1,329,666
City of Pittsburg CA,
5.864%, 07/01/2021		555,000		569,463
Coconino County Pollution Control Corp.,
1.875%, 09/01/2032(4)		3,000,000		3,040,380
County of Burleigh ND,
2.750%, 02/01/2022 (Callable 01/21/2021)		7,355,000		7,356,250
County of Riverside CA:
2.265%, 02/15/2022		5,000,000		5,093,950
2.363%, 02/15/2023		5,000,000		5,185,550
County of Sacramento CA:
7.680%, 08/15/2021(7)		16,535,000		17,226,494
7.680%, 08/15/2021(7)		2,000,000		2,086,160
County of Saline AR,
3.550%, 06/01/2042 (Callable 06/01/2024)		1,890,000		1,977,016
Dauphin County Industrial Development Authority,
6.900%, 06/01/2024		3,000,000		3,605,220
Florida Development Finance Corp.:
1.795%, 04/01/2022		1,000,000		1,004,850
1.976%, 04/01/2023		1,255,000		1,266,031
Fresno Joint Powers Financing Authority,
2.880%, 04/01/2021		1,685,000		1,691,504
Great Lakes Water Authority:
1.684%, 07/01/2022		250,000		254,490
1.879%, 07/01/2023		500,000		516,365
1.984%, 07/01/2024		500,000		521,530
Housing & Redevelopment
Authority of The City of St. Paul,
3.539%, 07/01/2023		5,000,000		5,261,550
Illinois Housing Development Authority,
4.000%, 02/01/2034 (Callable 08/01/2025)		4,010,000		4,134,510
Iowa Tobacco Settlement Authority,
6.500%, 06/01/2023 (Callable 02/01/2021)		155,000		157,296
Massachusetts Educational Financing Authority,
5.000%, 01/01/2024		26,990,000		30,433,924
Metropolitan Transportation Authority:
5.000%, 05/15/2021		5,500,000		5,557,695
5.000%, 05/15/2021		1,475,000		1,490,473
5.000%, 05/15/2021		3,755,000		3,794,390
5.000%, 09/01/2021		14,715,000		14,993,849
5.000%, 11/15/2021		1,500,000		1,537,800
5.000%, 11/15/2021		260,000		266,552
5.000%, 11/15/2021		750,000		768,900

The accompanying notes are an integral part of these financial statements.

Page 54

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
New Hampshire Housing Finance Authority,
4.000%, 07/01/2036 (Callable 07/10/2024)	$	3,250,000	$	3,331,835
New Jersey Economic Development Authority:
0.000%, 02/15/2021		1,440,000		1,439,352
2.609%, 06/15/2022		500,000		507,450
2.781%, 06/15/2023		2,085,000		2,141,691
New Jersey Higher Education
Student Assistance Authority:
5.000%, 12/01/2023		1,500,000		1,694,070
5.000%, 12/01/2023		2,375,000		2,682,278
New Jersey Sports & Exposition Authority:
6.076%, 03/01/2023		1,395,000		1,476,579
5.976%, 03/01/2024		3,875,000		3,984,004
New Jersey Transportation Trust Fund Authority,
2.384%, 06/15/2022		4,245,000		4,350,531
Niagara Area Development Corp.,
2.643%, 05/01/2022		1,000,000		1,003,130
Philadelphia Authority for Industrial Development:
0.000%, 04/15/2022		6,022,000		5,907,401
0.000%, 04/15/2023		7,250,000		6,998,498
3.964%, 04/15/2026		4,500,000		4,889,700
Port of Seattle WA,
2.430%, 05/01/2022		1,000,000		1,025,270
Public Finance Authority,
3.750%, 02/01/2022 (Callable 01/21/2021)		7,000,000		7,001,820
Rhode Island Housing & Mortgage Finance Corp.,
3.000%, 10/01/2034 (Callable 10/01/2022)		1,615,000		1,630,084
South Carolina Transportation Infrastructure Bank,
0.546%, 10/01/2031
(1 Month LIBOR USD + 0.450%)
(Callable 10/01/2021)(3)		11,940,000		11,924,000
State of Connecticut:
2.500%, 07/01/2022		3,000,000		3,095,160
2.000%, 07/01/2023		3,000,000		3,116,250
State of Illinois,
1.900%, 10/01/2021		5,500,000		5,467,110
State Public School Building Authority,
2.615%, 04/01/2023		2,500,000		2,537,650
Tennessee Housing Development Agency,
4.000%, 07/01/2040 (Callable 07/01/2029)		5,320,000		5,643,509
Tobacco Settlement Finance Authority,
0.947%, 06/01/2022		3,500,000		3,502,730
Total Municipal Bonds
(Cost $252,271,677)				256,689,161		2.9	%

The accompanying notes are an integral part of these financial statements.

Page 55

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Residential Mortgage-Backed Securities
Non-U.S. Government Agency Issues
ACE Securities Corp. Home Equity Loan Trust,
Series 2006-OP1, Class A2C, 0.298%, 04/25/2036
(1 Month LIBOR USD + 0.150%)(3)	$	242,572	$	242,326
Aegis Asset Backed Securities Trust,
Series 2005-4, Class M1, 0.823%, 10/25/2035
(1 Month LIBOR USD + 0.675%)(3)		9,822,693		9,800,380
Alternative Loan Trust:
Series 2004-12CB, Class 1A1, 5.000%, 01/25/2021		4,221		4,207
Series 2004-J2, Class 3A3, 5.500%, 04/25/2034		62,810		64,746
Series 2005-73CB, Class 1A7, 5.500%, 01/25/2036(6)		48,955		49,223
Series 2006-28CB, Class A17, 6.000%, 10/25/2036(6)		501,083		365,998
Argent Securities Inc. Asset-Backed
Pass-Through Certificates,
Series 2005-W3, Class A2D, 0.828%, 11/25/2035
(1 Month LIBOR USD + 0.680%)(3)		1,558,138		1,555,004
Arroyo Mortgage Trust:
Series 2019-3, Class A1, 2.962%, 10/25/2048(2)(4)		10,417,728		10,739,992
Series 2020-1, Class A1A, 1.662%, 03/25/2055(2)		12,488,300		12,607,159
Asset Backed Securities Corp. Home Equity Loan Trust,
Series 2006-HE1, Class A1, 0.363%, 01/25/2036
(1 Month LIBOR USD + 0.215%)(3)		1,783,771		1,778,284
COLT Trust,
Series 2020-RPL1, Class A1, 1.390%, 01/25/2065(2)(4)		26,435,681		26,563,949
Countrywide Asset-Backed Certificates,
Series 2006-2, Class 2A3, 0.748%, 06/25/2036
(1 Month LIBOR USD + 0.600%)(3)		651,546		651,277
CSMC Trust,
Series 2019-RPL1, Class A1A,
3.650%, 07/25/2058(2)(4)		36,685,317		39,848,930
CWABS Asset-Backed Certificates Trust,
Series 2006-9, Class 1AF3, 5.859%, 08/25/2036(4)(6)		341,379		332,967
GSAMP Trust,
Series 2006-HE7, Class A2D, 0.378%, 10/25/2036
(1 Month LIBOR USD + 0.230%)(3)		5,112,814		5,044,504
J.P. Morgan Mortgage Trust,
Series 2005-A4, Class 1A1, 2.588%, 07/25/2035(4)		263,791		269,629
MASTR Alternative Loan Trust:
Series 2003-5, Class 7A1, 5.000%, 10/01/2031(6)		39,528		25,396
Series 2003-5, Class 4A1, 5.500%, 07/25/2033		2,156,915		2,247,489
Mill City Mortgage Loan Trust,
Series 2018-2, Class A1, 3.500%, 05/25/2058(2)(4)		1,535,211		1,596,544

The accompanying notes are an integral part of these financial statements.

Page 56

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Morgan Stanley,
Series 2005-HE5, Class M2, 0.793%, 09/25/2035
(1 Month LIBOR USD + 0.645%)(3)	$	5,629,390	$	5,610,469
Renaissance Home Equity Loan Trust,
Series 2007-2, Class AF2, 5.675%, 06/25/2037(7)		1,914,212		732,087
Saxon Asset Securities Trust,
Series 2006-2, Class A3C, 0.298%, 09/25/2036
(1 Month LIBOR USD + 0.150%)(3)		200,247		199,841
Structured Asset Securities Corp.,
Series 2004-4XS, Class 1A6, 5.050%, 02/25/2034(7)		23,551		23,639
Thornburg Mortgage Securities Trust,
Series 2003-5, Class 3A, 2.307%, 10/25/2043(4)		3,133,571		3,085,627
Towd Point Mortgage Trust:
Series 2015-4, Class A1B, 2.750%, 04/25/2055(2)(4)		297,238		298,204
Series 2015-4, Class A1, 3.500%, 04/25/2055(2)(4)		640,093		643,728
Series 2016-5, Class A1, 2.500%, 10/25/2056(2)(4)		19,198,648		19,571,883
Series 2017-1, Class A1, 2.750%, 10/25/2056(2)(4)		16,305,919		16,711,961
Series 2017-5, Class A1, 0.748%, 02/26/2057
(1 Month LIBOR USD + 0.600%)(2)(3)		6,032,512		6,013,185
Series 2017-2, Class A1, 2.750%, 04/25/2057(2)(4)		5,572,148		5,696,253
Series 2017-3, Class A1, 2.750%, 06/25/2057(2)(4)		13,098,822		13,487,466
Series 2017-4, Class A1, 2.750%, 06/25/2057(2)(4)		6,301,812		6,530,093
Series 2017-6, Class A1, 2.750%, 10/25/2057(2)(4)		15,477,446		15,935,330
Series 2018-6, Class A1A, 3.750%, 03/25/2058(2)(4)		8,853,661		9,331,989
WaMu Mortgage Pass-Through Certificates Trust,
Series 2004-AR3, Class A1, 3.655%, 06/25/2034(4)		2,362,814		2,401,677
Total Residential Mortgage-Backed Securities
(Cost $216,213,746)				220,061,436		2.5	%
Commercial Mortgage-Backed Securities
U.S. Government Agency Issues
Freddie Mac Multifamily Structured
Pass Through Certificates,
Series K014, Class A2, 3.871%, 04/25/2021		7,499,242		7,522,536
Total U.S. Government Agency Issues
(Cost $7,499,872)				7,522,536		0.1	%
Non-U.S. Government Agency Issues
Citigroup Commercial Mortgage Trust:
Series 2013-GC11, Class A4, 3.093%, 04/10/2046		11,499,024		12,059,555
Series 2014-GC19, Class AAB, 3.552%, 03/12/2047		2,913,431		3,059,206
Series 2014-GC23, Class AAB, 3.337%, 07/12/2047		10,626,198		11,112,522
COMM Mortgage Trust:
Series 2012-CR1, Class ASB, 3.053%, 05/17/2045		7,124,252		7,213,361
Series 2012-CR2, Class A4, 3.147%, 08/17/2045		7,890,000		8,143,353
Series 2013-LC6, Class ASB, 2.478%, 01/12/2046		5,426,640		5,527,464

The accompanying notes are an integral part of these financial statements.

Page 57

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
COMM Mortgage Trust: (cont.)
Series 2014-LC15, Class ASB, 3.528%, 04/12/2047	$	9,173,228	$	9,537,493
Series 2014-CR16, Class ASB, 3.653%, 04/12/2047		8,917,378		9,265,042
Series 2013-CR11, Class A4, 4.258%, 08/12/2050		5,130,000		5,600,203
GS Mortgage Securities Trust:
Series 2011-GC5, Class A4, 3.707%, 08/10/2044		12,348,569		12,403,220
Series 2012-GCJ9, Class A3, 2.773%, 11/13/2045		23,247,021		23,936,253
J.P. Morgan Chase Commercial Mortgage Securities Trust:
Series 2012-C8, Class ASB, 2.379%, 10/17/2045		6,815,149		6,920,876
Series 2012-C8, Class A3, 2.829%, 10/17/2045		10,018,546		10,307,771
Series 2013-LC11, Class A5, 2.960%, 04/15/2046		12,580,000		13,179,980
Series 2011-C5, Class ASB, 3.678%, 08/15/2046		584,486		588,519
JPMBB Commercial Mortgage Securities Trust:
Series 2013-C14, Class ASB, 3.761%, 08/17/2046(4)		10,086,980		10,480,714
Series 2013-C14, Class A4, 4.133%, 08/17/2046(4)		10,625,000		11,452,522
Series 2015-C31, Class ASB, 3.540%, 08/17/2048		8,764,922		9,344,079
Series 2015-C33, Class ASB, 3.562%, 12/17/2048		4,053,647		4,332,575
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2013-C9, Class AAB, 2.657%, 05/17/2046		12,118,042		12,368,438
Series 2015-C25, Class ASB, 3.383%, 10/19/2048		14,207,216		15,084,546
Series 2013-C8, Class ASB, 2.699%, 12/17/2048		7,334,797		7,444,039
Wells Fargo Commercial Mortgage Trust,
Series 2014-LC16, Class ASB, 3.477%, 08/17/2050		10,617,819		11,109,377
WFRBS Commercial Mortgage Trust:
Series 2013-C11, Class A5, 3.071%, 03/17/2045		5,000,000		5,222,420
Series 2012-C6, Class A4, 3.440%, 04/15/2045		8,219,087		8,314,334
Series 2013-C14, Class ASB, 2.977%, 06/15/2046		14,640,670		14,953,892
Series 2013-C14, Class A4, 3.073%, 06/15/2046		13,000,000		13,662,806
Series 2014-C23, Class ASB, 3.636%, 10/17/2057		899,140		946,904
Total Non-U.S. Government Agency Issues
(Cost $260,525,251)				263,571,464		2.9	%
Total Commercial Mortgage-Backed Securities
(Cost $268,025,123)				271,094,000		3.0	%
Asset Backed Securities
American Express Credit Account Master Trust,
Series 2019-2, Class A, 2.670%, 11/15/2024		7,130,000		7,353,073
Bank of The West Auto Trust:
Series 2017-1, Class A3, 2.110%, 01/15/2023(2)		1,719,167		1,726,303
Series 2019-1, Class A3, 2.430%, 04/15/2024(2)		13,005,000		13,252,161
Capital One Multi-Asset Execution Trust,
Series 2019-A2, Class A2, 1.720%, 08/15/2024		15,250,000		15,620,142
CarMax Auto Owner Trust,
Series 2018-4, Class A3, 3.360%, 09/15/2023		9,671,137		9,874,932

The accompanying notes are an integral part of these financial statements.

Page 58

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Chase Auto Credit Linked Notes,
Series 2020-2, Class B, 0.840%, 02/25/2028(2)	$	12,000,000	$	12,011,910
Chesapeake Funding II LLC:
Series 2018-1A, Class A1, 3.040%, 04/15/2030(2)		4,088,514		4,130,215
Series 2020-1A, Class A1, 0.870%, 08/15/2032(2)		18,580,177		18,672,333
Conseco Financial Corp.,
Series 1998-3, Class A5, 6.220%, 03/01/2030		21,869		22,139
Discover Card Execution Note Trust,
Series 2019-A3, Class A, 1.890%, 10/15/2024		2,700,000		2,778,975
Ford Credit Auto Owner Trust:
Series 2020-A, Class A3, 1.040%, 08/15/2024		35,300,000		35,730,159
Series 2017-1, Class A, 2.620%, 08/15/2028(2)		24,017,000		24,624,868
Ford Credit Floorplan Master Owner Trust,
Series 2019-3, Class A1, 2.230%, 09/15/2024		36,300,000		37,435,286
GM Financial Automobile Leasing Trust,
Series 2020-2, Class A3, 0.800%, 07/20/2023		9,500,000		9,571,803
GMF Floorplan Owner Revolving Trust,
Series 2020-1, Class A, 0.680%, 08/15/2025(2)		8,900,000		8,952,640
Hyundai Auto Lease Securitization Trust,
Series 2020-A, Class A3, 1.950%, 07/15/2023(2)		23,600,000		23,982,785
Mercedes-Benz Master Owner Trust,
Series 2019-BA, Class A, 2.610%, 05/15/2024(2)		16,025,000		16,555,480
PFS Financing Corp.:
Series 2018-B, Class A, 2.890%, 02/15/2023(2)		11,725,000		11,749,424
Series 2018-D, Class A, 3.190%, 04/17/2023(2)		13,015,000		13,106,181
Series 2018-F, Class A, 3.520%, 10/16/2023(2)		6,419,000		6,579,528
Series 2019-A, Class A2, 2.860%, 04/15/2024(2)		7,675,000		7,892,619
SoFi Consumer Loan Program LLC:
Series 2017-3, Class A, 2.770%, 05/26/2026(2)		365,502		366,573
Series 2017-4, Class A, 2.500%, 06/25/2026(2)		313,131		314,298
Synchrony Card Issuance Trust,
Series 2018-A1, Class A, 3.380%, 09/15/2024		33,970,000		34,713,770
Towd Point Mortgage Trust:
Series 2019-MH1, Class A1, 3.000%, 11/25/2058(2)(4)		10,656,597		10,923,886
Series 2020-MH1, Class A1A, 2.184%, 02/25/2060(2)(4)		19,019,254		19,358,093
Series 2020-MH1, Class A1, 2.250%, 02/25/2060(2)(4)		24,674,667		25,096,248
Verizon Owner Trust:
Series 2019-B, Class A1A, 2.330%, 12/20/2023		24,450,000		24,933,953
Series 2020-B, Class A, 0.470%, 02/20/2025		45,175,000		45,334,906
Volkswagen Auto Lease Trust,
Series 2019-A, Class A3, 1.990%, 11/21/2022		8,868,000		8,999,879
Volkswagen Auto Loan Enhanced Trust,
Series 2020-1, Class A3, 0.980%, 11/20/2024		19,375,000		19,578,058

The accompanying notes are an integral part of these financial statements.

Page 59

Baird Short-Term Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal					% of
	Amount		Value			Net Assets
World Financial Network Credit Card Master Trust:
Series 2016-A, Class A, 2.030%, 04/15/2025	$	16,710,000	$	16,835,576
Series 2019-A, Class A, 3.140%, 12/15/2025		58,210,000		60,028,876
Total Asset Backed Securities
(Cost $542,025,509)				548,107,072			6.1	%
Total Long-Term Investments
(Cost $8,749,191,690)				8,887,077,742			98.9	%
Short-Term Investment
	Shares
Money Market Mutual Fund
First American Government Obligations
Fund, Class U, 0.04%(5)		324,227,630		324,227,630
Total Short-Term Investment
(Cost $324,227,630)				324,227,630			3.6	%
Total Investments
(Cost $9,073,419,320)				9,211,305,372			102.5	%
Liabilities in Excess of Other Assets				(228,086,826	)		(2.5	)%
TOTAL NET ASSETS			$	8,983,218,546			100.0	%

Notes to Schedule of Investments

CMT – Constant Maturity Treasury

LIBOR – London Inter-bank Offered Rate

SOFR – Secured Overnight Financing Rate

(1)	Foreign security.
(2)	Security as defined in Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program.  Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers.  At December 31, 2020, the value of these securities total $2,052,327,466, which represents 22.85% of total net assets.
(3)	Variable rate security based on a reference index and spread.  The rate reported is the rate in effect as of December 31, 2020.
(4)	Variable rate security. The coupon is based on an underlying pool of loans. The rate reported is the rate in effect as of December 31, 2020.
(5)	Seven-day yield.
(6)	Security that, on the last payment date, missed a partial principal or interest payment.
(7)	Step-up bond; the interest rate shown is the rate in effect as of December 31, 2020.

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value.  These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The accompanying notes are an integral part of these financial statements.

Page 60

Baird Short-Term Bond Fund

Summary of Fair Value Exposure at December 31, 2020 (cont.)

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability.  These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Long-Term Investments
U.S. Treasury Securities	$	—	$	2,995,103,667	$	—	$	2,995,103,667
Other Government Related Securities		—		12,221,030		—		12,221,030
Corporate Bonds		—		4,583,801,376		—		4,583,801,376
Municipal Bonds		—		256,689,161		—		256,689,161
Residential Mortgage-Backed Securities –
Non-U.S. Government Agency Issues		—		220,061,436		—		220,061,436
Commercial Mortgage-Backed Securities –
U.S. Government Agency Issues		—		7,522,536		—		7,522,536
Commercial Mortgage-Backed Securities –
Non-U.S. Government Agency Issues		—		263,571,464		—		263,571,464
Asset Backed Securities		—		548,107,072		—		548,107,072
Total Long-Term Investments		—		8,887,077,742		—		8,887,077,742
Short-Term Investment
Money Market Mutual Fund		324,227,630		—		—		324,227,630
Total Short-Term Investment		324,227,630		—		—		324,227,630
Total Investments	$	324,227,630	$	8,887,077,742	$	—	$	9,211,305,372

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 61

Baird Intermediate Bond Fund

December 31, 2020 (Unaudited)

The Baird Intermediate Bond Fund seeks an annual rate of total return, before Fund expenses, greater than the annual rate of total return of the Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index. The Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government and credit securities, with maturities between one and ten years.

Treasury yields fell across the curve in 2020, with the benchmark 10-year Treasury down 100 bps to finish the year at 0.92%, after hitting an all-time [intra-day] record low of 0.31% on March 9. The curve steepened, with the spread between 2-year and 30-year Treasuries increasing from 82 bps to 153 bps during the year, as yields in shorter maturities saw the largest decline. Starting in late February, the coronavirus (COVID-19) affected every aspect of the economy, leading to the swiftest equity bear market in history, with an over 33% peak-to-trough drop in the S&P 500 in just over a month ending March 23, and fixed income markets hitting levels of distress not seen since the Global Financial Crisis (GFC) in 2008. However, unlike 2008, the massive, coordinated monetary and fiscal policy response resulted in a much swifter recovery. U.S. unemployment dropped to 6.7% by year end after peaking at 14.7% in April as businesses reopened, and the Pfizer and Moderna vaccines offered hope for a return to normal sometime in 2021. The S&P 500 ended the year up 16% at record highs and credit spreads tightened through year end, completely erasing the pandemic-related widening in many sectors. The COVID-19 pandemic and the massive government policy response to it essentially created a full market cycle for spreads in the span of a calendar year.

During 2020, the Fund’s Institutional Class Shares generated strong absolute and relative returns and outperformed its benchmark by 99 basis points net of fees.

The primary factors contributing to the Fund’s absolute and relative performance in 2020 include:

• Credit Positioning

 • Positive – Overweight to Investment Grade Credit (increased exposure post widening of the spread)

 • Positive – Active positioning within Investment Grade Credit

  • Positive – Underweight to the Other Government Sector in favor of Corporate Credit including Financials

  • Positive – Security selection, including attractive new issue concessions

• Mortgage-Backed Securities (MBS) & Asset-Backed Securities (ABS) Positioning

 • Positive – Exposure to ABS (increased exposure post widening of the spread)

 • Positive – Exposure to Non-Agency Commercial Mortgage-Backed Securities (CMBS) & Non-Agency Residential Mortgage-Backed Securities (RMBS)

We expect the economic impact of COVID-19 to linger well into 2021, particularly as it relates to the travel and hospitality service sectors. Yet, with the massive fiscal stimulus that is already in the pipeline, and likely more coming now that the Democratic Party has full, albeit narrow, control of Washington, above-average economic growth is very likely in 2021. Stronger growth may pressure inflation modestly higher, a goal of the Fed, translating into moderately higher intermediate and long-term rates. With short-term rates still anchored close to zero by the Fed, a steeper yield curve will enable investors to capture some added performance as bonds roll down the curve. We expect the roll-down return to be an important component of total return this year, as well as security selection, sector allocation, and the yield advantage the Fund enjoys above that of its benchmark. Strategic positioning across market sectors and along the yield curve (including the ability to thoughtfully reposition should spreads widen into volatility) will complement the always-important security selection process to help navigate through the current environment.

The Fund remains duration neutral with a modest overweight to Investment Grade corporate credit, particularly Financials. The Fund is also maintaining its allocation in the MBS/ABS sectors at the senior part of the capital structure given attractive relative valuations and the continued broad sector diversification benefit they provide to the overall portfolio. The Fund only purchases investment grade, U.S. dollar denominated securities in the cash bond market (no derivatives) and we believe the Fund is well positioned to add value relative to its benchmark.

Page 62

Baird Intermediate Bond Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

Quality Distribution⁽¹⁾⁽²⁾

	Net Assets	$5,319,604,851
	SEC 30-Day
	Yield(3)
	Institutional Class	0.71%
	Investor Class	0.46%
	Average
	Effective
	Duration	4.12 years
	Average
	Effective
	Maturity	4.47 years
	Annualized
	Expense
	Ratio(4)
	Institutional Class	0.30%
	Investor Class	0.55%	(5)
Sector Weightings(1)
	Portfolio
	Turnover Rate	37%
	Number of
	Holdings	509

(1)	Percentages shown are based on the Fund’s total investments.
(2)	The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO).  NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest).
(3)	SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2020.
(4)	Reflects expense ratios as stated in the Fund’s current prospectus.
(5)	Includes 0.25% 12b-1 fee.

Page 63

Baird Intermediate Bond Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on 12/31/10, assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on 12/31/10, assuming reinvestment of all distributions.

Page 64

Baird Intermediate Bond Fund

December 31, 2020 (Unaudited)

Total Returns

		Average Annual
	One	Five	Ten	Since
For the Periods Ended December 31, 2020	Year	Years	Years	Inception(1)
Institutional Class Shares	7.42%	4.09%	3.72%	4.89%
Investor Class Shares	7.16%	3.84%	3.47%	4.63%
Bloomberg Barclays Intermediate U.S.
Government/Credit Bond Index(2)	6.43%	3.64%	3.11%	4.43%

(1)	For the period from September 29, 2000 (inception date) through December 31, 2020.
(2)	The Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government and corporate securities, with maturities between one and ten years.  This Index does not reflect any deduction for fees, expenses or taxes.  A direct investment in an index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund may invest in U.S. dollar denominated foreign securities which involve additional risks such as political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund may also invest in mortgage- and asset-backed securities, which include interest rate and prepayment risks more pronounced than those of other fixed income securities.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com.  Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 65

Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments

	Principal				% of
	Amount		Value		Net Assets
U.S. Treasury Securities
U.S. Treasury Bonds:
1.750%, 03/31/2022	$	154,950,000	$	158,097,422
1.875%, 03/31/2022		280,600,000		286,738,125
2.500%, 05/15/2024		550,950,000		593,691,665
2.250%, 11/15/2025		461,225,000		503,672,113
2.000%, 11/15/2026		34,550,000		37,604,166
2.250%, 11/15/2027		297,600,000		330,452,248
3.125%, 11/15/2028		123,200,000		145,866,876
1.625%, 08/15/2029		210,300,000		224,971,710
Total U.S. Treasury Securities
(Cost $2,224,965,450)				2,281,094,325		42.9	%
Other Government Related Securities
Sinopec Group Overseas Development [2016] Ltd.,
2.750%, 05/03/2021(1)(2)		5,300,000		5,330,489
Total Other Government Related Securities
(Cost $5,290,908)				5,330,489		0.1	%
Corporate Bonds
Industrials
Abbott Laboratories,
3.400%, 11/30/2023		4,853,000		5,262,035
Agilent Technologies, Inc.,
3.050%, 09/22/2026		1,495,000		1,631,359
Alimentation Couche-Tard, Inc.,
2.700%, 07/26/2022(1)(2)		7,730,000		7,989,605
Allegion PLC,
3.500%, 10/01/2029(1)		3,160,000		3,506,806
Allegion US Holding Co., Inc.,
3.200%, 10/01/2024		4,523,000		4,830,835
Anheuser-Busch InBev Worldwide, Inc.:
3.650%, 02/01/2026		3,945,000		4,459,308
4.750%, 01/23/2029		835,000		1,031,138
ArcelorMittal,
4.550%, 03/11/2026(1)		4,015,000		4,511,036
AT&T, Inc.:
4.350%, 03/01/2029		2,150,000		2,564,221
4.300%, 02/15/2030		9,604,000		11,472,337
2.750%, 06/01/2031		7,900,000		8,442,122
2.250%, 02/01/2032		1,000,000		1,014,419
2.550%, 12/01/2033(2)		2,672,000		2,739,169
Becton Dickinson and Co.,
7.000%, 08/01/2027		1,900,000		2,424,459
Bemis Co., Inc.,
2.630%, 06/19/2030		4,525,000		4,900,316

The accompanying notes are an integral part of these financial statements.

Page 66

Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Boardwalk Pipelines LP:
5.950%, 06/01/2026	$	1,360,000	$	1,608,503
4.800%, 05/03/2029		750,000		859,417
Broadcom, Inc.:
3.625%, 10/15/2024		8,000,000		8,789,372
3.150%, 11/15/2025		10,000,000		10,919,517
Bunge Limited Finance Corp.,
3.750%, 09/25/2027		5,000,000		5,701,413
Campbell Soup Co.,
3.950%, 03/15/2025		8,000,000		9,016,395
Carrier Global Corp.,
2.242%, 02/15/2025		13,275,000		14,047,111
CH Robinson Worldwide, Inc.,
4.200%, 04/15/2028		12,300,000		14,551,168
Charter Communications Operating LLC:
4.464%, 07/23/2022		10,548,000		11,120,160
4.908%, 07/23/2025		1,277,000		1,483,169
3.750%, 02/15/2028		5,830,000		6,536,782
4.200%, 03/15/2028		2,070,000		2,388,215
5.050%, 03/30/2029		3,000,000		3,647,591
Cheniere Corpus Christi Holdings LLC,
5.125%, 06/30/2027		2,000,000		2,365,956
Cigna Corp.,
3.000%, 07/15/2023		5,655,000		5,988,543
CK Hutchison International Ltd.,
3.250%, 04/11/2024(1)(2)		10,000,000		10,688,800
CNH Industrial Capital LLC:
3.875%, 10/15/2021		3,000,000		3,070,441
4.200%, 01/15/2024		2,800,000		3,071,398
CNH Industrial NV:
4.500%, 08/15/2023(1)		5,000,000		5,451,936
3.850%, 11/15/2027(1)		2,243,000		2,526,930
Coca-Cola Femsa SAB de CV,
2.750%, 01/22/2030(1)		8,875,000		9,545,420
Columbia Pipeline Group, Inc.,
4.500%, 06/01/2025		630,000		724,522
Comcast Corp.,
3.100%, 04/01/2025		8,925,000		9,820,275
Conagra Brands, Inc.,
8.250%, 09/15/2030		1,140,000		1,710,836
Constellation Brands, Inc.:
2.700%, 05/09/2022		2,975,000		3,059,811
3.500%, 05/09/2027		3,625,000		4,089,562

The accompanying notes are an integral part of these financial statements.

Page 67

Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Cox Communications, Inc.:
3.250%, 12/15/2022(2)	$	3,610,000	$	3,802,446
3.850%, 02/01/2025(2)		2,800,000		3,122,595
3.350%, 09/15/2026(2)		1,927,000		2,165,242
CVS Health Corp.:
3.625%, 04/01/2027		2,500,000		2,844,938
1.300%, 08/21/2027		5,750,000		5,776,702
4.300%, 03/25/2028		8,531,000		10,151,556
CVS Pass-Through Trust,
5.926%, 01/10/2034(2)		2,017,093		2,446,499
Daimler Finance North America LLC:
3.750%, 11/05/2021(2)		6,800,000		6,988,449
1.750%, 03/10/2023(2)		11,000,000		11,293,408
Dentsply Sirona,
3.250%, 06/01/2030		10,600,000		11,805,551
Diageo Capital PLC,
2.000%, 04/29/2030(1)		3,275,000		3,415,202
Diamond 1 Finance Corp. / Diamond 2 Finance Corp.:
5.450%, 06/15/2023(2)		12,100,000		13,382,850
6.020%, 06/15/2026(2)		3,000,000		3,659,835
Dollar Tree, Inc.,
3.700%, 05/15/2023		5,050,000		5,405,798
Dow Chemical Co.,
4.550%, 11/30/2025		2,515,000		2,942,894
DuPont de Nemours, Inc.,
4.493%, 11/15/2025		4,175,000		4,873,686
DXC Technology Co.:
4.450%, 09/18/2022		14,000,000		14,735,250
4.250%, 04/15/2024		5,700,000		6,219,252
4.125%, 04/15/2025		4,555,000		5,035,301
Ecolab, Inc.,
4.800%, 03/24/2030		10,000,000		12,759,909
Edward-Elmhurst Healthcare,
3.500%, 05/04/2023		6,575,000		6,908,882
EI du Pont de Nemours and Co.,
1.700%, 07/15/2025		10,000,000		10,421,072
Emerson Electric Co.,
1.950%, 10/15/2030		12,600,000		13,293,485
Energy Transfer Operating LP:
4.500%, 04/15/2024		1,000,000		1,093,682
5.500%, 06/01/2027		17,931,000		21,104,758
EnLink Midstream Partners LP,
4.400%, 04/01/2024		10,000,000		9,867,700
EQT Midstream Partners LP,
4.125%, 12/01/2026		5,000,000		5,037,500

The accompanying notes are an integral part of these financial statements.

Page 68

Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Equifax, Inc.,
2.600%, 12/01/2024	$	5,000,000	$	5,355,278
Equinix, Inc.,
1.800%, 07/15/2027		7,000,000		7,205,745
ERAC USA Finance LLC,
2.600%, 12/01/2021(2)		4,825,000		4,908,436
Exxon Mobil Corp.:
1.571%, 04/15/2023		7,500,000		7,712,990
2.992%, 03/19/2025		11,250,000		12,313,175
Ferguson Finance PLC,
4.500%, 10/24/2028(1)(2)		5,930,000		7,106,940
Fidelity National Information Services, Inc.:
3.500%, 04/15/2023		2,373,000		2,518,346
3.875%, 06/05/2024		1,247,000		1,372,384
3.000%, 08/15/2026		2,027,000		2,255,467
4.250%, 05/15/2028		8,690,000		10,343,525
3.750%, 05/21/2029		7,000,000		8,217,978
Fiserv, Inc.:
3.500%, 10/01/2022		3,050,000		3,191,064
2.250%, 06/01/2027		16,000,000		17,051,946
4.200%, 10/01/2028		1,035,000		1,234,028
FMC Corp.,
4.100%, 02/01/2024		4,685,000		5,099,655
Ford Motor Credit Co. LLC:
5.750%, 02/01/2021		2,000,000		2,005,000
3.336%, 03/18/2021		1,800,000		1,804,500
3.339%, 03/28/2022		2,000,000		2,020,000
2.979%, 08/03/2022		12,000,000		12,200,400
4.250%, 09/20/2022		1,545,000		1,594,687
Fortune Brands Home & Security, Inc.:
4.000%, 09/21/2023		5,775,000		6,292,226
3.250%, 09/15/2029		2,725,000		3,019,626
Fox Corp.,
4.030%, 01/25/2024		5,155,000		5,677,427
Freeport-McMoRan, Inc.,
3.875%, 03/15/2023		1,100,000		1,147,630
General Motors Financial Co., Inc.:
4.375%, 09/25/2021		5,325,000		5,468,788
4.200%, 11/06/2021		2,000,000		2,061,434
3.450%, 01/14/2022		1,475,000		1,514,463
3.150%, 06/30/2022		1,000,000		1,035,328
4.150%, 06/19/2023		1,325,000		1,425,463
1.700%, 08/18/2023		10,000,000		10,257,534
2.900%, 02/26/2025		4,000,000		4,271,686

The accompanying notes are an integral part of these financial statements.

Page 69

Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Genpact Luxembourg Sarl,
3.375%, 12/01/2024(1)	$	7,000,000	$	7,621,593
Glencore Funding LLC:
4.125%, 05/30/2023(2)		1,750,000		1,892,537
4.125%, 03/12/2024(2)		5,000,000		5,501,966
4.625%, 04/29/2024(2)		1,000,000		1,116,782
4.000%, 03/27/2027(2)		4,850,000		5,486,235
3.875%, 10/27/2027(2)		1,150,000		1,295,935
2.500%, 09/01/2030(2)		6,343,000		6,468,888
Global Payments, Inc.,
3.750%, 06/01/2023		2,325,000		2,485,255
Grupo Bimbo SAB de CV:
4.500%, 01/25/2022(1)(2)		8,129,000		8,447,575
3.875%, 06/27/2024(1)(2)		5,340,000		5,843,135
HP, Inc.,
2.200%, 06/17/2025		18,325,000		19,401,391
Husky Energy, Inc.,
4.400%, 04/15/2029(1)		5,000,000		5,563,190
Hutchison Whampoa International Ltd.,
4.625%, 01/13/2022(1)(2)		7,000,000		7,272,165
Hyundai Capital America,
3.450%, 03/12/2021(2)		9,000,000		9,044,550
Ingersoll-Rand Co.,
6.391%, 11/15/2027(1)		1,195,000		1,514,095
International Business Machines Corp.,
3.300%, 05/15/2026		6,150,000		6,949,242
JB Hunt Transport Services, Inc.,
3.875%, 03/01/2026		3,000,000		3,444,882
Kerry Group Financial Services Unlimited Co.,
3.200%, 04/09/2023(1)(2)		5,000,000		5,246,817
Kinder Morgan, Inc.:
5.625%, 11/15/2023(2)		1,000,000		1,128,162
7.800%, 08/01/2031		12,425,000		17,743,871
Kraft Heinz Foods Co.,
6.375%, 07/15/2028		7,929,000		9,743,913
Lear Corp.,
3.800%, 09/15/2027		1,000,000		1,121,825
Lennox International, Inc.,
1.350%, 08/01/2025		7,000,000		7,161,066
LYB International Finance III LLC,
2.250%, 10/01/2030		5,000,000		5,143,972
Microchip Technology, Inc.:
3.922%, 06/01/2021		7,000,000		7,099,395
0.972%, 02/15/2024(2)		5,000,000		5,012,239

The accompanying notes are an integral part of these financial statements.

Page 70

Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Midwest Connector Capital Co. LLC,
3.900%, 04/01/2024(2)	$	7,450,000	$	7,636,250
Mosaic Co.,
4.250%, 11/15/2023		8,606,000		9,393,103
MPLX LP:
4.875%, 06/01/2025		10,219,000		11,803,654
4.800%, 02/15/2029		3,475,000		4,199,757
Newell Brands, Inc.,
3.850%, 04/01/2023		3,166,000		3,320,786
Nissan Motor Acceptance Corp.,
3.650%, 09/21/2021(2)		7,210,000		7,335,647
Nutrien Ltd.,
3.150%, 10/01/2022(1)		1,306,000		1,358,289
nVent Finance Sarl,
3.950%, 04/15/2023(1)		18,275,000		19,243,971
NXP Semiconductors NV:
3.875%, 09/01/2022(1)(2)		7,000,000		7,377,623
4.875%, 03/01/2024(1)(2)		5,790,000		6,530,655
Occidental Petroleum Corp.:
2.900%, 08/15/2024		5,000,000		4,812,500
7.500%, 10/15/2026		1,288,000		1,310,476
ONEOK, Inc.:
7.500%, 09/01/2023		7,470,000		8,646,500
2.750%, 09/01/2024		3,300,000		3,481,956
Oracle Corp.,
2.800%, 04/01/2027		10,500,000		11,580,219
Orange SA,
9.000%, 03/01/2031(1)		4,125,000		6,785,260
Penske Truck Leasing Co.:
2.700%, 11/01/2024(2)		8,000,000		8,570,595
3.950%, 03/10/2025(2)		12,000,000		13,440,805
PepsiCo, Inc.,
2.625%, 03/19/2027		5,650,000		6,216,358
Phillips 66,
2.150%, 12/15/2030		10,000,000		10,151,710
Phillips 66 Partners LP,
3.605%, 02/15/2025		2,000,000		2,161,499
POSCO:
5.250%, 04/14/2021(1)(2)		3,000,000		3,035,520
4.000%, 08/01/2023(1)(2)		5,000,000		5,391,480
Procter & Gamble Co.,
2.800%, 03/25/2027		10,000,000		11,141,388
Regency Energy Partners LP /
Regency Energy Finance Corp.,
4.500%, 11/01/2023		1,100,000		1,190,994

The accompanying notes are an integral part of these financial statements.

Page 71

Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Roper Technologies, Inc.:
3.800%, 12/15/2026	$	1,450,000	$	1,675,216
2.000%, 06/30/2030		14,675,000		14,999,565
Sabine Pass Liquefaction LLC:
5.875%, 06/30/2026		9,730,000		11,764,566
4.500%, 05/15/2030(2)		4,500,000		5,333,749
Samarco Mineracao SA,
5.375%, 09/26/2024(1)(2)(9)		1,675,000		1,197,625
Schneider Electric SE,
2.950%, 09/27/2022(1)(2)		2,000,000		2,086,626
Shell International Finance BV:
2.375%, 04/06/2025(1)		5,000,000		5,362,502
2.750%, 04/06/2030(1)		5,000,000		5,531,669
Sherwin-Williams Co.,
3.300%, 02/01/2025		3,851,000		4,175,574
Smith & Nephew PLC,
2.032%, 10/14/2030(1)		5,000,000		5,093,591
Smithfield Foods, Inc.,
2.650%, 10/03/2021(2)		8,000,000		8,070,712
Solvay Finance America LLC,
4.450%, 12/03/2025(2)		6,145,000		7,025,808
Southern Natural Gas Co. LLC,
8.000%, 03/01/2032		2,523,000		3,603,812
Sysco Corp.,
2.600%, 06/12/2022		150,000		154,591
TC PipeLines LP:
4.375%, 03/13/2025		5,500,000		6,203,189
3.900%, 05/25/2027		13,425,000		15,099,566
Telefonica Emisiones SA,
5.462%, 02/16/2021(1)		650,000		653,641
Toyota Motor Credit Corp.,
2.900%, 03/30/2023		10,000,000		10,578,962
TransCanada PipeLines Ltd.,
9.875%, 01/01/2021(1)		556,000		556,000
Tyson Foods, Inc.,
4.000%, 03/01/2026		3,000,000		3,450,795
Vale Overseas Ltd.,
6.250%, 08/10/2026(1)		5,830,000		7,229,200
Valero Energy Corp.,
3.400%, 09/15/2026		4,985,000		5,465,796
Verisk Analytics, Inc.,
4.125%, 03/15/2029		3,000,000		3,605,163
Verizon Communications, Inc.:
3.376%, 02/15/2025		853,000		947,372
4.125%, 03/16/2027		3,196,000		3,767,093

The accompanying notes are an integral part of these financial statements.

Page 72

Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Verizon Communications, Inc.: (cont.)
3.000%, 03/22/2027	$	13,000,000	$	14,422,778
4.329%, 09/21/2028		2,051,000		2,469,875
4.016%, 12/03/2029		5,628,000		6,692,190
VISA, Inc.,
1.900%, 04/15/2027		4,775,000		5,082,106
Vodafone Group PLC,
3.750%, 01/16/2024(1)		3,940,000		4,305,463
Volkswagen Group of America Finance LLC:
1.154%, 11/12/2021
(3 Month LIBOR USD + 0.940%)(2)(3)		1,800,000		1,812,979
4.000%, 11/12/2021(2)		8,000,000		8,244,219
0.875%, 11/22/2023(2)		6,875,000		6,913,730
2.850%, 09/26/2024(2)		8,600,000		9,184,740
Wabtec Corp.:
4.375%, 08/15/2023		12,302,000		12,982,880
3.450%, 11/15/2026		5,000,000		5,488,853
Walgreens Boots Alliance, Inc.,
3.200%, 04/15/2030		6,335,000		6,881,748
Waste Management, Inc.,
3.125%, 03/01/2025		4,000,000		4,379,267
Western Midstream Operating LP,
4.500%, 03/01/2028		7,195,000		7,457,617
Williams Companies, Inc.:
3.700%, 01/15/2023		1,775,000		1,880,302
4.300%, 03/04/2024		14,329,000		15,789,129
WRKCo, Inc.,
3.900%, 06/01/2028		8,275,000		9,594,488
Yara International ASA,
3.800%, 06/06/2026(1)(2)		650,000		725,644
Zimmer Biomet Holdings, Inc.,
3.700%, 03/19/2023		10,000,000		10,667,518
Zoetis, Inc.:
3.250%, 02/01/2023		7,500,000		7,889,156
4.500%, 11/13/2025		2,000,000		2,334,556
Total Industrials
(Cost $1,105,052,297)				1,191,499,291		22.4	%
Utilities
Ausgrid Finance Pty Ltd.,
3.850%, 05/01/2023(1)(2)		6,200,000		6,547,026
Avangrid, Inc.,
3.800%, 06/01/2029		10,975,000		12,587,188
Berkshire Hathaway Energy Co.,
4.050%, 04/15/2025(2)		14,925,000		16,899,127

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Edison International:
2.950%, 03/15/2023	$	2,650,000	$	2,753,515
4.125%, 03/15/2028		13,600,000		15,164,529
Enel Finance International NV:
3.625%, 05/25/2027(1)(2)		1,550,000		1,758,814
3.500%, 04/06/2028(1)(2)		13,550,000		15,432,062
Entergy Corp.,
2.800%, 06/15/2030		12,425,000		13,418,745
FirstEnergy Corp.,
2.050%, 03/01/2025		6,450,000		6,424,186
ITC Holdings Corp.,
2.950%, 05/14/2030(2)		15,717,000		17,179,142
Oncor Electric Delivery Co. LLC,
2.750%, 05/15/2030		6,000,000		6,717,939
PPL Capital Funding, Inc.,
3.400%, 06/01/2023		2,475,000		2,628,428
RGS I&M Funding Corp.,
9.820%, 12/07/2022		184,811		190,207
Talent Yield Investments Ltd.,
4.500%, 04/25/2022(1)(2)		3,800,000		3,950,796
Total Utilities
(Cost $109,968,757)				121,651,704		2.3	%
Financials
ABN AMRO Bank NV,
4.750%, 07/28/2025(1)(2)		14,323,000		16,483,639
AerCap Holdings NV,
2.875%, 08/14/2024(1)		5,000,000		5,199,930
Aetna, Inc.,
2.800%, 06/15/2023		4,010,000		4,219,138
AIA Group Ltd.,
3.200%, 03/11/2025(1)(2)		3,000,000		3,236,550
Air Lease Corp.,
2.250%, 01/15/2023		3,800,000		3,901,532
American International Group, Inc.:
4.875%, 06/01/2022		6,000,000		6,365,773
4.125%, 02/15/2024		1,000,000		1,107,232
AmSouth Bancorporation,
6.750%, 11/01/2025		630,000		773,530
Anthem, Inc.:
3.350%, 12/01/2024		10,000,000		11,018,275
2.375%, 01/15/2025		12,000,000		12,834,604
Banco Santander SA,
3.500%, 04/11/2022(1)		4,400,000		4,569,197

The accompanying notes are an integral part of these financial statements.

Page 74

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Bank of America Corp.:
3.300%, 01/11/2023	$	4,710,000	$	4,993,589
2.816%, 07/21/2023
(3 Month LIBOR USD + 0.930%)(3)		3,500,000		3,634,509
4.000%, 04/01/2024		1,596,000		1,771,658
3.864%, 07/23/2024
(3 Month LIBOR USD + 0.940%)(3)		10,000,000		10,842,015
3.458%, 03/15/2025
(3 Month LIBOR USD + 0.970%)(3)		5,060,000		5,509,286
3.093%, 10/01/2025
(3 Month LIBOR USD + 1.090%)(3)		3,295,000		3,566,891
3.705%, 04/24/2028
(3 Month LIBOR USD + 1.512%)(3)		5,050,000		5,749,216
3.419%, 12/20/2028
(3 Month LIBOR USD + 1.040%)(3)		1,519,000		1,715,777
Bank of Montreal,
3.300%, 02/05/2024(1)		10,000,000		10,846,074
Bank of New Zealand,
3.500%, 02/20/2024(1)(2)		5,000,000		5,432,334
Bank of Nova Scotia:
1.625%, 05/01/2023(1)		10,000,000		10,287,745
4.500%, 12/16/2025(1)		7,000,000		8,161,595
Banque Federative du Credit Mutuel SA,
3.750%, 07/20/2023(1)(2)		8,000,000		8,645,752
Barclays Bank PLC,
10.180%, 06/12/2021(1)(2)		5,000,000		5,200,243
Barclays PLC:
3.684%, 01/10/2023(1)		7,350,000		7,575,269
3.932%, 05/07/2025
(3 Month LIBOR USD + 1.610%)(1)(3)		4,500,000		4,922,976
4.337%, 01/10/2028(1)		2,275,000		2,613,492
BBVA USA:
2.875%, 06/29/2022		3,475,000		3,601,079
3.875%, 04/10/2025		4,200,000		4,709,838
BNP Paribas SA:
3.500%, 03/01/2023(1)(2)		10,000,000		10,641,257
2.819%, 11/19/2025
(3 Month LIBOR USD + 1.111%)(1)(2)(3)		5,000,000		5,329,615
BNZ International Funding Ltd.,
3.375%, 03/01/2023(1)(2)		2,000,000		2,123,988
Boston Properties LP,
3.200%, 01/15/2025		12,175,000		13,266,920
BPCE SA:
5.700%, 10/22/2023(1)(2)		5,375,000		6,083,631
4.000%, 04/15/2024(1)		3,500,000		3,875,276
4.625%, 07/11/2024(1)(2)		10,000,000		11,178,713

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal					% of
	Amount			Value		Net Assets
Brown & Brown, Inc.:
4.200%, 09/15/2024	$	10,461,000		$	11,649,594
4.500%, 03/15/2029		8,597,000			10,176,578
2.375%, 03/15/2031		3,500,000			3,663,147
Capital One Financial Corp.,
3.650%, 05/11/2027		3,000,000			3,439,391
Citigroup, Inc.:
2.876%, 07/24/2023
(3 Month LIBOR USD + 0.950%)(3)		2,000,000			2,077,565
3.750%, 06/16/2024		500,000			553,073
3.352%, 04/24/2025
(3 Month LIBOR USD + 0.897%)(3)		10,040,000			10,915,246
3.200%, 10/21/2026		5,000,000			5,588,339
3.887%, 01/10/2028
(3 Month LIBOR USD + 1.563%)(3)		9,000,000			10,314,706
Citizens Bank NA,
2.250%, 04/28/2025		19,000,000			20,160,331
CNA Financial Corp.:
7.250%, 11/15/2023		1,980,000			2,347,815
4.500%, 03/01/2026		5,070,000			5,964,371
3.900%, 05/01/2029		4,000,000			4,700,602
Cooperatieve Rabobank UA:
3.950%, 11/09/2022(1)		2,250,000			2,388,692
4.625%, 12/01/2023(1)		7,400,000			8,247,681
3.750%, 07/21/2026(1)		1,276,000			1,442,085
Credit Agricole SA,
3.375%, 01/10/2022(1)(2)		7,400,000			7,625,131
Credit Suisse Group AG:
3.574%, 01/09/2023(1)(2)		1,000,000			1,030,308
4.207%, 06/12/2024
(3 Month LIBOR USD + 1.240%)(1)(2)(3)		4,000,000			4,333,690
2.593%, 09/11/2025 (SOFR + 1.560%)(1)(2)(3)		7,000,000			7,365,914
Credit Suisse Group Funding Guernsey Ltd.,
3.800%, 06/09/2023(1)		9,000,000			9,692,916
Deutsche Bank AG:
3.150%, 01/22/2021(1)		1,500,000			1,501,664
4.250%, 10/14/2021(1)		7,000,000			7,177,988
3.300%, 11/16/2022(1)		5,175,000			5,396,694
2.222%, 09/18/2024 (SOFR + 2.159%)(1)(3)		5,000,000			5,143,694
Discover Financial Services:			��
3.950%, 11/06/2024		4,200,000			4,663,831
4.100%, 02/09/2027		9,000,000			10,368,725
FirstMerit Bank NA,
4.270%, 11/25/2026		5,450,000			6,251,183

The accompanying notes are an integral part of these financial statements.

Page 76

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
GE Capital Funding LLC,
4.050%, 05/15/2027(2)	$	5,000,000	$	5,719,970
Goldman Sachs Group, Inc.:
3.500%, 01/23/2025		2,000,000		2,207,319
3.272%, 09/29/2025
(3 Month LIBOR USD + 1.201%)(3)		3,500,000		3,833,989
1.093%, 12/09/2026 (SOFR + 0.789%)(3)		5,000,000		5,054,961
3.691%, 06/05/2028
(3 Month LIBOR USD + 1.510%)(3)		4,000,000		4,608,092
4.223%, 05/01/2029
(3 Month LIBOR USD + 1.301%)(3)		3,100,000		3,677,726
Guardian Life Global Funding,
3.400%, 04/25/2023(2)		9,000,000		9,614,064
Hartford Financial Services Group, Inc.,
2.800%, 08/19/2029		3,625,000		3,938,080
Health Care Service Corp. A Mutual Legal Reserve Co.,
2.200%, 06/01/2030(2)		10,000,000		10,461,288
High Street Funding Trust I,
4.111%, 02/15/2028(2)		5,000,000		5,765,350
Highmark, Inc.,
4.750%, 05/15/2021(2)		2,000,000		2,032,487
HSBC Holdings PLC:
3.262%, 03/13/2023
(3 Month LIBOR USD + 1.055%)(1)(3)		10,140,000		10,474,074
3.600%, 05/25/2023 (1)		2,700,000		2,904,153
3.803%, 03/11/2025
(3 Month LIBOR USD + 1.211%)(1)(3)		3,000,000		3,275,476
4.292%, 09/12/2026
(3 Month LIBOR USD + 1.348%)(1)(3)		7,235,000		8,245,587
3.973%, 05/22/2030
(3 Month LIBOR USD + 1.610%)(1)(3)		1,000,000		1,154,750
Humana, Inc.,
2.900%, 12/15/2022		6,275,000		6,560,572
ING Groep NV,
3.550%, 04/09/2024(1)		4,000,000		4,370,278
Invesco Finance PLC,
3.125%, 11/30/2022(1)		4,750,000		4,988,710
Jackson National Life Global Funding,
3.250%, 01/30/2024(2)		10,350,000		11,127,813
Jefferies Group LLC,
4.850%, 01/15/2027		1,425,000		1,666,899
John Hancock Life Insurance Co.,
7.375%, 02/15/2024(2)		11,325,000		13,350,487

The accompanying notes are an integral part of these financial statements.

Page 77

Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
JPMorgan Chase & Co.:
1.445%, 10/24/2023
(3 Month LIBOR USD + 1.230%)(3)	$	5,035,000	$	5,125,182
4.023%, 12/05/2024
(3 Month LIBOR USD + 1.000%)(3)		20,000,000		22,032,567
2.301%, 10/15/2025 (SOFR + 1.160%)(3)		13,000,000		13,799,839
2.005%, 03/13/2026 (SOFR + 1.585%)(3)		7,625,000		8,009,238
2.083%, 04/22/2026 (SOFR + 1.850%)(3)		3,000,000		3,168,380
1.045%, 11/19/2026 (SOFR + 0.800%)(3)		5,000,000		5,056,500
2.522%, 04/22/2031 (SOFR + 2.040%)(3)		1,500,000		1,612,293
KeyBank NA:
3.180%, 05/22/2022		2,750,000		2,851,306
3.400%, 05/20/2026		2,200,000		2,470,095
LeasePlan Corp. NV,
2.875%, 10/24/2024(1)(2)		10,000,000		10,566,581
Liberty Mutual Group, Inc.:
4.250%, 06/15/2023(2)		966,000		1,051,059
4.569%, 02/01/2029(2)		1,559,000		1,915,601
Life Storage LP,
3.875%, 12/15/2027		8,000,000		9,140,295
Lloyds Bank PLC,
4.050%, 08/16/2023(1)		4,580,000		5,004,922
Macquarie Bank Ltd.,
6.625%, 04/07/2021(1)(2)		5,482,000		5,567,563
Macquarie Group Ltd.:
3.189%, 11/28/2023
(3 Month LIBOR USD + 1.023%)(1)(2)(3)		5,250,000		5,488,357
4.150%, 03/27/2024
(3 Month LIBOR USD + 1.330%)(1)(2)(3)		4,000,000		4,298,020
Marsh & McLennan Companies, Inc.,
3.875%, 03/15/2024		1,550,000		1,709,584
Massachusetts Mutual Life Insurance Co.,
7.625%, 11/15/2023(2)		12,053,000		13,655,105
MBIA Insurance Corp.,
11.497%, 01/15/2033
(3 Month LIBOR USD + 11.260%)(2)(3)(9)		500,000		175,000
Metropolitan Life Global Funding I,
3.000%, 01/10/2023(2)		1,300,000		1,370,500
Mitsubishi UFJ Financial Group, Inc.:
2.998%, 02/22/2022(1)		2,595,000		2,672,757
3.455%, 03/02/2023(1)		2,000,000		2,130,981
2.193%, 02/25/2025(1)		5,000,000		5,281,978
Mizuho Financial Group, Inc.:
2.601%, 09/11/2022(1)		5,000,000		5,188,922
4.600%, 03/27/2024(1)(2)		7,000,000		7,710,497

The accompanying notes are an integral part of these financial statements.

Page 78

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Mizuho Financial Group, Inc.: (cont.)
3.922%, 09/11/2024
(3 Month LIBOR USD + 1.000%)(1)(3)	$	3,000,000	$	3,261,933
Morgan Stanley:
1.615%, 10/24/2023
(3 Month LIBOR USD + 1.400%)(3)		7,000,000		7,132,892
2.188%, 04/28/2026 (SOFR + 1.990%)(3)		10,000,000		10,562,420
3.125%, 07/27/2026		4,600,000		5,141,726
MUFG Americas Holdings Corp.,
3.500%, 06/18/2022		225,000		235,379
National Australia Bank Ltd.,
2.332%, 08/21/2030(1)(2)		7,575,000		7,700,953
Nationwide Building Society:
3.766%, 03/08/2024
(3 Month LIBOR USD + 1.064%)(1)(2)(3)		5,000,000		5,319,371
4.000%, 09/14/2026(1)(2)		10,000,000		11,132,588
Nationwide Financial Services, Inc.,
5.375%, 03/25/2021(2)		1,478,000		1,494,057
Nationwide Mutual Insurance Co.,
8.250%, 12/01/2031(2)		2,195,000		3,145,057
Nordea Bank AB,
4.250%, 09/21/2022(1)(2)		12,850,000		13,640,605
Peachtree Corners Funding Trust,
3.976%, 02/15/2025(2)		6,556,000		7,269,406
People’s United Bank NA,
4.000%, 07/15/2024		5,000,000		5,389,826
Pine Street Trust I,
4.572%, 02/15/2029(2)		5,000,000		5,927,633
Principal Life Global Funding II,
3.000%, 04/18/2026(2)		7,000,000		7,784,195
Protective Life Corp.,
4.300%, 09/30/2028(2)		1,400,000		1,636,498
Prudential Insurance Co. of America,
8.300%, 07/01/2025(2)		8,300,000		10,758,560
Reliance Standard Life Global Funding II:
3.050%, 01/20/2021(2)		5,000,000		5,005,729
2.750%, 01/21/2027(2)		11,775,000		12,372,654
Royal Bank of Scotland Group PLC:
4.269%, 03/22/2025
(3 Month LIBOR USD + 1.762%)(1)(3)		7,454,000		8,246,295
5.076%, 01/27/2030
(3 Month LIBOR USD + 1.905%)(1)(3)		4,700,000		5,778,498
4.445%, 05/08/2030
(3 Month LIBOR USD + 1.871%)(1)(3)		6,850,000		8,160,685

The accompanying notes are an integral part of these financial statements.

Page 79

Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Santander UK Group Holdings PLC:
3.373%, 01/05/2024
(3 Month LIBOR USD + 1.080%)(1)(3)	$	2,500,000	$	2,631,156
4.796%, 11/15/2024
(3 Month LIBOR USD + 1.570%)(1)(3)		5,000,000		5,561,769
Santander UK PLC,
5.000%, 11/07/2023(1)(2)		3,675,000		4,056,669
SMBC Aviation Capital Finance DAC:
3.000%, 07/15/2022(1)(2)		4,000,000		4,105,310
3.550%, 04/15/2024(1)(2)		6,075,000		6,452,977
Societe Generale SA:
4.250%, 09/14/2023(1)(2)		5,000,000		5,452,992
5.000%, 01/17/2024(1)(2)		3,350,000		3,697,811
2.625%, 01/22/2025(1)(2)		2,855,000		3,023,701
4.250%, 04/14/2025(1)(2)		4,814,000		5,303,212
Standard Chartered PLC:
3.050%, 01/15/2021(1)(2)		10,350,000		10,357,769
3.785%, 05/21/2025
(3 Month LIBOR USD + 1.560%)(1)(2)(3)		4,125,000		4,473,181
2.819%, 01/30/2026
(3 Month LIBOR USD + 1.209%)(1)(2)(3)		5,000,000		5,296,290
Stifel Financial Corp.:
4.250%, 07/18/2024		10,139,000		11,391,267
4.000%, 05/15/2030		3,000,000		3,428,213
Synchrony Financial:
3.750%, 08/15/2021		5,000,000		5,071,568
4.250%, 08/15/2024		5,275,000		5,828,436
3.700%, 08/04/2026		3,000,000		3,329,788
Trinity Acquisition PLC,
4.400%, 03/15/2026(1)		1,125,000		1,310,723
UBS Group Funding Switzerland AG,
3.491%, 05/23/2023(1)(2)		3,050,000		3,173,901
Voya Financial, Inc.:
3.125%, 07/15/2024		3,350,000		3,620,412
3.650%, 06/15/2026		2,410,000		2,756,379
Wells Fargo & Co.:
2.625%, 07/22/2022		10,000,000		10,351,186
1.444%, 10/31/2023
(3 Month LIBOR USD + 1.230%)(3)		5,000,000		5,078,999
1.654%, 06/02/2024 (SOFR + 1.600%)(3)		5,000,000		5,139,417
2.164%, 02/11/2026
(3 Month LIBOR USD + 0.750%)(3)		5,000,000		5,257,706
2.188%, 04/30/2026 (SOFR + 2.000%)(3)		16,000,000		16,846,198
Westpac Banking Corp.,
2.894%, 02/04/2030
(5 Year CMT Rate + 1.350%)(1)(3)		2,000,000		2,096,668

The accompanying notes are an integral part of these financial statements.

Page 80

Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Willis North America, Inc.:
3.600%, 05/15/2024	$	8,150,000	$	8,899,048
4.500%, 09/15/2028		8,500,000		10,245,016
Willis Towers Watson PLC,
5.750%, 03/15/2021(1)		3,450,000		3,484,741
Total Financials
(Cost $922,244,934)				993,073,802		18.7	%
Total Corporate Bonds
(Cost $2,137,265,988)				2,306,224,797		43.4	%
Municipal Bonds
Alabama Economic Settlement Authority,
3.163%, 09/15/2025		3,305,000		3,498,673
Central Valley Support Joint Powers Agency,
5.326%, 09/01/2022		2,000,000		2,132,660
City of Berwyn IL:
5.790%, 12/01/2022		430,000		448,043
5.790%, 12/01/2022		1,280,000		1,313,152
County of Cook IL,
5.240%, 11/15/2025 (Callable 11/15/2021)		2,345,000		2,420,861
County of Hamilton OH,
3.374%, 06/01/2034		10,000,000		11,003,500
County of Miami-Dade FL,
2.536%, 10/01/2033 (Callable 10/01/2030)(8)		2,800,000		2,886,212
GBG LLC,
2.250%, 09/01/2030(2)		1,300,000		1,332,638
Great Lakes Water Authority,
2.315%, 07/01/2031		2,000,000		2,089,520
Iowa Tobacco Settlement Authority,
6.500%, 06/01/2023 (Callable 02/01/2021)		570,000		578,442
Massachusetts Educational Financing Authority,
5.000%, 01/01/2025		5,450,000		6,349,195
New Jersey Economic Development Authority:
0.000%, 02/15/2021		3,000,000		2,998,650
0.000%, 02/15/2022		2,000,000		1,987,920
New Jersey Higher Education
Student Assistance Authority:
5.000%, 12/01/2024		2,100,000		2,445,597
5.000%, 12/01/2024		2,450,000		2,853,196
5.000%, 12/01/2025		1,680,000		2,012,808
5.000%, 12/01/2025		2,675,000		3,204,917
5.000%, 12/01/2026		1,550,000		1,895,696
5.000%, 12/01/2026		2,350,000		2,874,121
5.000%, 12/01/2027		1,000,000		1,239,790
5.000%, 12/01/2027		1,600,000		1,983,664

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
New Jersey Higher Education
Student Assistance Authority: (cont.)
5.000%, 12/01/2028	$	1,225,000	$	1,543,194
5.000%, 12/01/2028		1,205,000		1,517,999
New Jersey Turnpike Authority,
3.223%, 01/01/2036 (Callable 07/01/2025)(2)		5,000,000		5,301,150
Niagara Area Development Corp.:
3.004%, 05/01/2025		1,000,000		1,012,730
3.204%, 05/01/2026		1,995,000		2,028,995
3.272%, 05/01/2027		2,060,000		2,095,226
3.372%, 05/01/2028		2,130,000		2,159,713
3.422%, 05/01/2029		2,200,000		2,227,060
North Carolina Housing Finance Agency:
4.000%, 01/01/2030 (Callable 07/01/2021)		130,000		131,673
3.000%, 01/01/2033 (Callable 01/01/2025)		1,465,000		1,480,163
North East Independent School District,
5.240%, 08/01/2027		2,100,000		2,691,318
San Diego Convention Center
Expansion Financing Authority:
1.987%, 04/15/2026		3,440,000		3,472,164
2.363%, 04/15/2028		1,325,000		1,342,848
South Dakota Housing Development Authority,
2.700%, 11/01/2036 (Callable 11/01/2025)		975,000		990,366
Winnebago & Boone Counties School District No. 205:
3.800%, 12/01/2026 (Callable 12/01/2025)		2,200,000		2,377,518
3.950%, 12/01/2027 (Callable 12/01/2025)		1,700,000		1,839,689
Total Municipal Bonds
(Cost $85,301,991)				89,761,061		1.7	%
Residential Mortgage-Backed Securities
U.S. Government Agency Issues
Fannie Mae REMIC Trust:
Series G-29, Class O, 8.500%, 09/25/2021		7		7
Series 1991-137, Class H, 7.000%, 10/25/2021		1,506		1,524
Series 1993-32, Class H, 6.000%, 03/25/2023		2,743		2,860
Federal Gold Loan Mortgage Corp. (FGLMC):
6.000%, 06/01/2021		2,720		2,740
6.000%, 07/01/2028		2,418		2,763
Federal Home Loan Mortgage Corp. (FHLMC),
Series 1395, Class G, 6.000%, 10/15/2022		1,034		1,067
Federal National Mortgage Association (FNMA),
0.875%, 08/05/2030		24,400,000		23,945,867
Total U.S. Government Agency Issues
(Cost $24,353,754)				23,956,828		0.4	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Non-U.S. Government Agency Issues
Alternative Loan Trust,
Series 2005-11CB, Class 2A1, 5.500%, 06/25/2035(6)	$	26,072	$	25,888
AMRESCO Residential Securities
Corp. Mortgage Loan Trust,
Series 1998-1, Class A6, 6.510%, 08/25/2027(4)		51		52
Argent Securities Inc. Asset-Backed
Pass-Through Certificates:
Series 2005-W3, Class A2D, 0.828%, 11/25/2035
(1 Month LIBOR USD + 0.680%)(3)		298,923		298,322
Series 2005-W5, Class A1, 0.618%, 01/25/2036
(1 Month LIBOR USD + 0.470%)(3)		4,420,749		4,376,506
Banc of America Alternative Loan Trust,
Series 2006-2, Class 7A1, 6.000%, 03/25/2021(6)		21,306		19,365
Banc of America Funding Trust,
Series 2004-2, Class 1CB1, 5.750%, 09/20/2034		1,522,539		1,648,855
Bear Stearns ARM Trust,
Series 2004-5, Class 2A, 3.395%, 07/25/2034(4)		615,480		624,256
Citigroup Global Markets Mortgage Securities VII, Inc.,
Series 2003-UP2, Class A2, 7.000%, 06/25/2033(7)		28,801		29,898
Countrywide Asset-Backed Certificates,
Series 2004-12, Class AF6, 4.634%, 03/25/2035(4)		33		33
CWABS Asset-Backed Certificates Trust:
Series 2005-1, Class AF6, 5.030%, 06/25/2035(4)		4,703		4,768
Series 2006-9, Class 1AF3, 5.859%, 08/25/2036(4)(6)		314,068		306,330
Delta Funding Home Equity Loan Trust:
Series 1997-2, Class A6, 7.040%, 06/25/2027		461		411
Series 1999-2, Class A7F, 7.030%, 08/15/2030(6)		110,242		111,471
GSAMP Trust,
Series 2005-WMC2, Class A1B, 0.768%, 11/25/2035
(1 Month LIBOR USD + 0.620%)(3)		255,173		255,193
IMC Home Equity Loan Trust,
Series 1998-1, Class A6, 7.020%, 06/20/2029(7)		279		281
J.P. Morgan Alternative Loan Trust,
Series 2006-A1, Class 2A1, 3.524%, 03/25/2036(4)		223,066		208,741
New Residential Mortgage Loan Trust,
Series 2017-2A, Class A3, 4.000%, 03/25/2057(2)(4)		2,500,581		2,703,994
RALI Series Trust,
Series 2004-QS6, Class A1, 5.000%, 06/15/2021(6)		1,187		1,147
RAMP Series Trust,
Series 2005-RS1, Class AI6, 4.713%, 11/25/2034		399		403
Soundview Home Loan Trust,
Series 2003-2, Class A2, 1.448%, 11/25/2033
(1 Month LIBOR USD + 1.300%)(3)		1,034,389		1,031,824

The accompanying notes are an integral part of these financial statements.

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Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Specialty Underwriting & Residential Finance Trust,
Series 2004-BC4, Class A1A, 0.818%, 10/25/2035
(1 Month LIBOR USD + 0.670%)(3)	$	987,411	$	984,838
Thornburg Mortgage Securities Trust,
Series 2003-5, Class 3A, 2.307%, 10/25/2043(4)		1,880,143		1,851,376
Towd Point Mortgage Trust:
Series 2015-5, Class A1B, 2.750%, 05/25/2055(2)(4)		606,035		610,452
Series 2016-2, Class A1, 3.000%, 08/25/2055(2)(4)		991,352		1,005,753
Series 2017-1, Class A1, 2.750%, 10/25/2056(2)(4)		10,291,191		10,547,457
Series 2017-5, Class A1, 0.748%, 02/26/2057
(1 Month LIBOR USD + 0.600%)(2)(3)		2,823,216		2,814,171
Series 2019-1, Class A1, 3.750%, 03/25/2058(2)(4)		7,151,969		7,684,494
Series 2019-4, Class A1, 2.900%, 10/25/2059(2)(4)		11,665,832		12,313,974
Series 2020-4, Class A1, 1.750%, 10/25/2060(2)		18,270,654		18,684,261
WaMu Mortgage Pass-Through Certificates Trust:
Series 2004-AR3, Class A1, 3.655%, 06/25/2034(4)		1,430,290		1,453,815
Series 2004-CB2, Class 3A, 6.000%, 08/25/2034		1,918,226		2,090,458
Wells Fargo Home Equity Asset-Backed Securities Trust,
Series 2004-2, Class A33, 1.148%, 10/25/2034
(1 Month LIBOR USD + 1.000%)(3)		1,720,612		1,694,104
Total Non-U.S. Government Agency Issues
(Cost $71,358,826)				73,382,891		1.4	%
Total Residential Mortgage-Backed Securities
(Cost $95,712,580)				97,339,719		1.8	%
Commercial Mortgage-Backed Securities
U.S. Government Agency Issues
Freddie Mac Multifamily Structured
Pass Through Certificates:
Series K720, Class A2, 2.716%, 06/25/2022		17,125,000		17,540,048
Series K028, Class A2, 3.111%, 02/25/2023		13,850,000		14,570,118
Series K723, Class A2, 2.454%, 08/25/2023		14,500,000		15,200,195
Series K038, Class A2, 3.389%, 03/25/2024		1,650,000		1,794,734
Series K727, Class A2, 2.946%, 07/25/2024		5,400,000		5,812,001
Series K041, Class A2, 3.171%, 10/25/2024		4,895,000		5,367,163
Series K043, Class A2, 3.062%, 12/25/2024		4,250,000		4,673,060
Series K048, Class A2, 3.284%, 06/25/2025(4)		8,725,000		9,713,404
Series K050, Class A2, 3.334%, 08/25/2025(4)		12,375,000		13,836,907
Series K734, Class A2, 3.208%, 02/25/2026		9,375,000		10,435,179
Series K062, Class A2, 3.413%, 12/25/2026		21,599,000		24,763,837
Series K065, Class A2, 3.243%, 04/25/2027		2,075,000		2,369,565
Series K068, Class A2, 3.244%, 08/25/2027		9,354,000		10,731,764
Series K071, Class A2, 3.286%, 11/25/2027		7,075,000		8,159,032
Series K073, Class A2, 3.350%, 01/25/2028		9,100,000		10,528,051
Series K083, Class A2, 4.050%, 09/25/2028(4)		9,525,000		11,552,594
Total U.S. Government Agency Issues
(Cost $156,471,761)				167,047,652		3.1	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Non-U.S. Government Agency Issues
BANK,
Series 2017-BNK7, Class ASB, 3.265%, 09/17/2060	$	1,300,000	$	1,419,859
CD Mortgage Trust,
Series 2017-CD6, Class ASB, 3.332%, 11/15/2050		10,480,000		11,573,908
Citigroup Commercial Mortgage Trust:
Series 2013-GC11, Class A4, 3.093%, 04/10/2046		11,550,000		12,113,015
Series 2015-GC27, Class A5, 3.137%, 02/10/2048		13,635,576		14,783,762
Series 2015-GC35, Class A4, 3.818%, 11/13/2048		8,795,000		9,950,957
COMM Mortgage Trust,
Series 2013-CR11, Class A4, 4.258%, 08/12/2050		13,025,000		14,218,839
J.P. Morgan Chase Commercial Mortgage Securities Trust,
Series 2013-LC11, Class A4, 2.694%, 04/17/2046		3,058,423		3,181,089
JPMBB Commercial Mortgage Securities Trust:
Series 2013-C12, Class A5, 3.664%, 07/17/2045		3,373,000		3,590,825
Series 2014-C26, Class A4, 3.494%, 01/17/2048		14,480,202		15,920,122
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2013-C7, Class A4, 2.918%, 02/16/2046		12,980,000		13,485,080
Series 2014-C16, Class A4, 3.600%, 06/17/2047		13,175,000		14,020,329
Series 2015-C27, Class A4, 3.753%, 12/17/2047		28,920,000		32,406,775
Series 2016-C29, Class ASB, 3.140%, 05/17/2049		5,000,000		5,338,597
Wells Fargo Commercial Mortgage Trust:
Series 2014-LC18, Class ASB, 3.244%, 12/17/2047		13,129,347		13,753,044
Series 2015-P2, Class ASB, 3.656%, 12/17/2048		11,674,880		12,503,726
Series 2015-P2, Class A4, 3.809%, 12/17/2048		20,769,144		23,594,958
WFRBS Commercial Mortgage Trust:
Series 2012-C6, Class A4, 3.440%, 04/15/2045		8,369,022		8,466,007
Series 2014-C24, Class ASB, 3.324%, 11/18/2047		7,820,797		8,187,375
Series 2013-C12, Class ASB, 2.838%, 03/17/2048		3,650,385		3,735,195
Total Non-U.S. Government Agency Issues
(Cost $213,182,037)				222,243,462		4.2	%
Total Commercial Mortgage-Backed Securities
(Cost $369,653,798)				389,291,114		7.3	%
Asset Backed Securities
Bank of The West Auto Trust,
Series 2019-1, Class A3, 2.430%, 04/15/2024(2)		8,100,000		8,253,941
Conseco Financial Corp.:
Series 1998-7, Class A1, 6.320%, 05/01/2029		364,618		368,362
Series 1998-3, Class A5, 6.220%, 03/01/2030		39,948		40,441
Series 1998-4, Class A5, 6.180%, 04/01/2030		25,572		26,057
Discover Card Execution Note Trust,
Series 2017-A4, Class A4, 2.530%, 10/15/2026		4,000,000		4,274,177
Ford Credit Auto Owner Trust,
Series 2019-1, Class A, 3.520%, 07/15/2030(2)		10,825,000		11,805,964

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal					% of
	Amount		Value			Net Assets
Hyundai Auto Lease Securitization Trust,
Series 2020-A, Class A3, 1.950%, 07/15/2023(2)	$	15,050,000	$	15,294,106
MMAF Equipment Finance LLC,
Series 2020-A, Class A3, 0.970%, 04/09/2027(2)		6,550,000		6,613,564
Oakwood Mortgage Investors, Inc.,
Series 1999-B, Class A3, 6.450%, 12/15/2023		18,581		19,132
PFS Financing Corp.,
Series 2019-A, Class A2, 2.860%, 04/15/2024(2)		12,125,000		12,468,796
SoFi Consumer Loan Program LLC,
Series 2017-3, Class A, 2.770%, 05/26/2026 (2)		193,405		193,972
Towd Point Mortgage Trust,
Series 2020-MH1, Class A1, 2.250%, 02/25/2060(2)(4)		12,283,695		12,493,569
Toyota Auto Loan Extended Note Trust,
Series 2019-1A, Class A, 2.560%, 11/25/2031(2)		19,075,000		20,370,327
Total Asset Backed Securities
(Cost $89,059,688)				92,222,408			1.7	%
Total Long-Term Investments
(Cost $5,007,250,403)				5,261,263,913			98.9	%
Short-Term Investment
	Shares
Money Market Mutual Fund
First American Government Obligations
Fund, Class U, 0.04%(5)		145,132,424		145,132,424
Total Short-Term Investment
(Cost $145,132,424)				145,132,424			2.7	%
Total Investments
(Cost $5,152,382,827)				5,406,396,337			101.6	%
Liabilities in Excess of Other Assets				(86,791,486	)		(1.6	)%
TOTAL NET ASSETS			$	5,319,604,851			100.0	%

Notes to Schedule of Investments

CMT – Constant Maturity Treasury

LIBOR – London Inter-bank Offered Rate

SOFR – Secured Overnight Financing Rate

(1)	Foreign security.
(2)	Security as defined in Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program.  Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers.  At December 31, 2020, the value of these securities total $824,717,333, which represents 15.50% of total net assets.
(3)	Variable rate security based on a reference index and spread.  The rate reported is the rate in effect as of December 31, 2020.
(4)	Variable rate security. The coupon is based on an underlying pool of loans. The rate reported is the rate in effect as of December 31, 2020.

The accompanying notes are an integral part of these financial statements.

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Baird Intermediate Bond Fund

Schedule of Investments, December 31, 2020

Notes to Schedule of Investments (cont.)

(5)	Seven-day yield.
(6)	Security that, on the last payment date, missed a partial principal or interest payment.
(7)	Step-up bond; the interest rate shown is the rate in effect as of December 31, 2020.
(8)	Security or a portion of the security,  purchased on a when-issued or delayed delivery basis.
(9)	Security in default.

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value.  These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability.  These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The accompanying notes are an integral part of these financial statements.

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Baird Intermediate Bond Fund

Summary of Fair Value Exposure at December 31, 2020 (cont.)

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Long-Term Investments
U.S. Treasury Securities	$	—	$	2,281,094,325	$	—	$	2,281,094,325
Other Government Related Securities		—		5,330,489		—		5,330,489
Corporate Bonds		—		2,306,224,797		—		2,306,224,797
Municipal Bonds		—		89,761,061		—		89,761,061
Residential Mortgage-Backed Securities –
U.S. Government Agency Issues		—		23,956,828		—		23,956,828
Residential Mortgage-Backed Securities –
Non-U.S. Government Agency Issues		—		73,382,891		—		73,382,891
Commercial Mortgage-Backed Securities –
U.S. Government Agency Issues		—		167,047,652		—		167,047,652
Commercial Mortgage-Backed Securities –
Non-U.S. Government Agency Issues		—		222,243,462		—		222,243,462
Asset Backed Securities		—		92,222,408		—		92,222,408
Total Long-Term Investments		—		5,261,263,913		—		5,261,263,913
Short-Term Investment
Money Market Mutual Fund		145,132,424		—		—		145,132,424
Total Short-Term Investment		145,132,424		—		—		145,132,424
Total Investments	$	145,132,424	$	5,261,263,913	$	—	$	5,406,396,337

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 88

Baird Aggregate Bond Fund

December 31, 2020 (Unaudited)

The Baird Aggregate Bond Fund seeks an annual rate of total return, before Fund expenses, greater than the annual rate of total return of the Bloomberg Barclays U.S. Aggregate Bond Index. The Bloomberg Barclays Aggregate Bond Index is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government, credit, asset-backed (ABS), mortgage-backed (MBS) and commercial mortgage-backed (CMBS) securities with maturities of at least one year.

Treasury yields fell across the curve in 2020, with the benchmark 10-year Treasury down 100 bps to finish the year at 0.92%, after hitting an all-time [intra-day] record low of 0.31% on March 9. The curve steepened, with the spread between 2-year and 30-year Treasuries increasing from 82 bps to 153 bps during the year, as yields in shorter maturities saw the largest decline. Starting in late February, the coronavirus (COVID-19) affected every aspect of the economy, leading to the swiftest equity bear market in history, with an over 33% peak-to-trough drop in the S&P 500 in just over a month ending March 23, and fixed income markets hitting levels of distress not seen since the Global Financial Crisis (GFC) in 2008. However, unlike 2008, the massive, coordinated monetary and fiscal policy response resulted in a much swifter recovery. U.S. unemployment dropped to 6.7% by year end after peaking at 14.7% in April as businesses reopened, and the Pfizer and Moderna vaccines offered hope for a return to normal sometime in 2021. The S&P 500 ended the year up 16% at record highs and credit spreads tightened through year end, completely erasing the pandemic-related widening in many sectors. The COVID-19 pandemic and the massive government policy response to it essentially created a full market cycle for spreads in the span of a calendar year.

During 2020, the Fund’s Institutional Class Shares generated strong absolute and relative returns and outperformed its benchmark by 112 basis points net of fees.

The primary factors contributing to the Fund’s absolute and relative performance in 2020 include:

• Credit Positioning

 • Positive – Overweight to Investment Grade Credit (increased exposure post widening of the spread)

 • Positive – Active positioning within Investment Grade Credit

  • Positive – Underweight to the Other Government Sector in favor of Corporate Credit including Financials

  • Positive – Favoring credit shorter on the curve versus the benchmark

  • Positive – Security selection, including attractive new issue concessions

• Mortgage-Backed Securities (MBS) & Asset-Backed Securities (ABS) Positioning

 • Positive – Active positioning within MBS & ABS

  • Positive – Underweight to Agency Residential Mortgage-Backed Securities (RMBS)

  • Positive – Active positioning within Agency RMBS, including opportunistically increasing specified pool exposure in March, which outperformed more generic, faster-paying pools at record low mortgage rates

  • Positive – Overweight to Agency & Non-Agency Commercial Mortgage-Backed Securities (CMBS), Non-Agency RMBS & ABS

  • Positive – Within Non-Agency CMBS, investing in only the most senior classes which outperformed subordinated classes

• Yield Curve Positioning – Positive overall

 • Positive – Overall portfolio positive convexity tilt versus the benchmark

 • Modest positive – Modest underweight to the long end of the yield curve as the yield curve steepened

We expect the economic impact of COVID-19 to linger well into 2021, particularly as it relates to the travel and hospitality service sectors. Yet, with the massive fiscal stimulus that is already in the pipeline, and likely more coming now that the Democratic Party has full, albeit narrow, control of Washington, above-average economic growth is very likely in 2021. Stronger growth may pressure inflation modestly higher, a goal of the Fed, translating into moderately higher intermediate and long-term rates. With short-term rates still anchored

Page 89

Baird Aggregate Bond Fund

December 31, 2020 (Unaudited)

close to zero by the Fed, a steeper yield curve will enable investors to capture some added performance as bonds roll down the curve. We expect the roll-down return to be an important component of total return this year, as well as security selection, sector allocation, and the yield advantage the Fund enjoys above that of its benchmark. Strategic positioning across market sectors and along the yield curve (including the ability to thoughtfully reposition should spreads widen into volatility) will complement the always-important security selection process to help navigate through the current environment.

The Fund continues to maintain its underweight to Agency RMBS (providing a positive convexity tilt versus the benchmark for the overall portfolio) after increasing exposure at more attractive valuations in March. The Fund also continues to maintain its overweight to Agency CMBS, Non-Agency CMBS, Non-Agency RMBS and ABS at the top of the capital structure. The Fund only purchases investment grade, U.S. dollar denominated securities in the cash bond market (no derivatives). The Fund remains duration neutral to its benchmark and we believe it is well positioned to add value relative to its benchmark.

Page 90

Baird Aggregate Bond Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

Quality Distribution⁽¹⁾⁽²⁾

	Net Assets	$32,903,550,392
	SEC 30-Day
	Yield(3)
	Institutional Class	1.33%
	Investor Class	1.08%
	Average
	Effective
	Duration	6.22 years
	Average
	Effective
	Maturity	7.94 years
	Annualized
	Expense
Sector Weightings(1)	Ratio(4)
	Institutional Class	0.30%
	Investor Class	0.55%	(5)
	Portfolio
	Turnover Rate	35%
	Number of
	Holdings	1,456

(1)	Percentages shown are based on the Fund’s total investments.
(2)	The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO).  NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest).
(3)	SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2020.
(4)	Reflects expense ratios as stated in the Fund’s current prospectus.
(5)	Includes 0.25% 12b-1 fee.

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Baird Aggregate Bond Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on 12/31/10, assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on 12/31/10, assuming reinvestment of all distributions.

Page 92

Baird Aggregate Bond Fund

December 31, 2020 (Unaudited)

Total Returns

		Average Annual
	One	Five	Ten	Since
For the Periods Ended December 31, 2020	Year	Years	Years	Inception(1)
Institutional Class Shares	8.63%	5.04%	4.68%	5.50%
Investor Class Shares	8.42%	4.80%	4.42%	5.25%
Bloomberg Barclays U.S. Aggregate Bond Index(2)	7.51%	4.44%	3.84%	4.98%

(1)

For the period from September 29, 2000 (inception date) through December 31, 2020.

(2)

The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government, corporate, asset-backed, mortgage-backed and commercial mortgage-backed securities, with maturities of at least one year.  This Index does not reflect any deduction for fees, expenses or taxes.  A direct investment in an index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund maintains securities with longer maturities in order to provide a greater potential for return. Generally, the longer a bond’s maturity, the greater the interest rate risk. The Fund may also invest in U.S. dollar denominated foreign securities which involve additional risks such as political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund may also invest in mortgage- and asset-backed securities, which include interest rate and prepayment risks more pronounced than those of other fixed income securities.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com.  Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 93

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments

	Principal				% of
	Amount		Value		Net Assets
U.S. Treasury Securities
U.S. Treasury Bonds:
1.875%, 03/31/2022	$	1,091,700,000	$	1,115,580,937
2.125%, 12/31/2022		473,525,000		492,373,516
2.500%, 05/15/2024		567,485,000		611,509,419
2.250%, 11/15/2025		509,800,000		556,717,531
2.000%, 11/15/2026		533,750,000		580,932,667
2.250%, 11/15/2027		616,775,000		684,861,175
1.625%, 08/15/2029		167,350,000		179,025,277
2.875%, 05/15/2043		1,379,195,000		1,743,604,179
2.500%, 02/15/2045		929,375,000		1,108,315,989
2.875%, 05/15/2049		348,625,000		450,107,559
Total U.S. Treasury Securities
(Cost $7,253,736,457)				7,523,028,249		22.9	%
Other Government Related Securities
Comision Federal de Electricidad,
4.875%, 01/15/2024(1)(2)		3,423,000		3,791,007
Corp Andina de Fomento,
�� 4.375%, 06/15/2022(1)		6,107,000		6,424,625
Petroleos Mexicanos:
4.500%, 01/23/2026(1)		1,953,000		1,946,145
5.950%, 01/28/2031(1)		558,000		556,605
6.350%, 02/12/2048(1)		8,500,000		7,705,250
Sinopec Group Overseas Development [2014] Ltd.,
4.375%, 04/10/2024(1)(2)		1,500,000		1,645,426
Sinopec Group Overseas Development [2015] Ltd.,
3.250%, 04/28/2025(1)(2)		7,500,000		8,042,700
Sinopec Group Overseas Development [2017] Ltd.,
3.000%, 04/12/2022(1)(2)		15,000,000		15,376,909
Total Other Government Related Securities
(Cost $44,369,297)				45,488,667		0.1	%
Corporate Bonds
Industrials
A.P. Meoller – Maersk A/S,
3.750%, 09/22/2024(1)(2)		22,000,000		23,822,529
Abbott Laboratories,
4.900%, 11/30/2046		4,700,000		6,967,769
AbbVie, Inc.:
5.000%, 12/15/2021		24,000,000		24,776,609
3.250%, 10/01/2022		17,863,000		18,605,168
3.850%, 06/15/2024		12,067,000		13,289,943
3.800%, 03/15/2025		16,425,000		18,316,806
2.950%, 11/21/2026		9,625,000		10,643,798
4.550%, 03/15/2035		12,000,000		15,171,683

The accompanying notes are an integral part of these financial statements.

Page 94

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
AbbVie, Inc.: (cont.)
4.500%, 05/14/2035	$	9,000,000	$	11,304,670
4.300%, 05/14/2036		6,000,000		7,383,457
4.050%, 11/21/2039		12,700,000		15,369,853
Adventist Health System:
2.952%, 03/01/2029		19,250,000		20,877,546
3.630%, 03/01/2049		9,000,000		9,994,407
Agilent Technologies, Inc.,
2.100%, 06/04/2030		14,000,000		14,490,973
Air Products and Chemicals, Inc.,
2.700%, 05/15/2040		10,425,000		11,235,393
Alcon Finance Corp.:
2.750%, 09/23/2026(2)		14,770,000		16,165,362
3.800%, 09/23/2049(2)		7,000,000		8,258,229
Allegion PLC,
3.500%, 10/01/2029(1)		21,494,000		23,852,940
Allegion US Holding Co., Inc.:
3.200%, 10/01/2024		7,000,000		7,476,419
3.550%, 10/01/2027		11,975,000		13,096,615
Amgen, Inc.:
3.150%, 02/21/2040		13,350,000		14,695,811
4.400%, 05/01/2045		12,300,000		15,786,636
Analog Devices, Inc.,
3.125%, 12/05/2023		10,000,000		10,759,446
Anglo American Capital PLC:
5.375%, 04/01/2025(1)(2)		19,876,000		23,228,356
4.875%, 05/14/2025(1)(2)		13,831,000		15,999,104
4.750%, 04/10/2027(1)(2)		10,000,000		11,796,456
4.000%, 09/11/2027(1)(2)		2,570,000		2,951,131
2.625%, 09/10/2030(1)(2)		25,000,000		26,142,211
Anheuser-Busch InBev Worldwide, Inc.:
4.750%, 01/23/2029		4,075,000		5,032,200
4.375%, 04/15/2038		7,000,000		8,667,384
5.450%, 01/23/2039		20,000,000		27,170,878
4.900%, 02/01/2046		45,553,000		59,229,404
AP Moller – Maersk A/S:
3.875%, 09/28/2025(1)(2)		8,900,000		9,929,960
4.500%, 06/20/2029(1)(2)		8,000,000		9,356,764
Apple, Inc.:
2.400%, 05/03/2023		2,678,000		2,809,125
2.650%, 05/11/2050		10,000,000		10,613,461
ArcelorMittal:
3.600%, 07/16/2024(1)		10,000,000		10,791,481
4.550%, 03/11/2026(1)		13,000,000		14,606,096
4.250%, 07/16/2029(1)		15,000,000		16,614,138

The accompanying notes are an integral part of these financial statements.

Page 95

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Archer-Daniels-Midland Co.,
3.250%, 03/27/2030	$	7,000,000	$	8,095,435
AT&T, Inc.:
2.550%, 12/01/2033(2)		22,965,000		23,542,297
5.250%, 03/01/2037		10,000,000		13,014,574
4.900%, 08/15/2037		10,000,000		12,540,003
6.375%, 03/01/2041		11,764,000		17,269,968
3.100%, 02/01/2043		5,825,000		5,912,190
3.550%, 09/15/2055(2)		55,110,000		54,922,916
3.800%, 12/01/2057(2)		9,423,000		9,846,440
3.650%, 09/15/2059(2)		49,359,000		49,839,677
BAE Systems PLC,
1.900%, 02/15/2031(1)(2)		18,500,000		18,702,640
Bayer US Finance II LLC:
5.500%, 08/15/2025(2)		14,400,000		16,918,058
4.250%, 12/15/2025(2)		14,440,000		16,506,082
Becton Dickinson and Co.:
3.363%, 06/06/2024		6,300,000		6,848,570
3.734%, 12/15/2024		4,000,000		4,434,744
2.823%, 05/20/2030		15,000,000		16,486,424
4.875%, 05/15/2044		10,815,000		13,357,877
Bell Canada, Inc.:
4.464%, 04/01/2048(1)		1,225,000		1,635,581
4.300%, 07/29/2049(1)		4,123,000		5,399,281
Biogen, Inc.,
3.150%, 05/01/2050		20,000,000		20,738,577
Boardwalk Pipelines LP:
4.950%, 12/15/2024		27,631,000		30,838,414
5.950%, 06/01/2026		28,506,000		33,714,706
4.450%, 07/15/2027		13,777,000		15,421,098
4.800%, 05/03/2029		16,918,000		19,386,155
3.400%, 02/15/2031		5,825,000		6,077,991
Boeing Co.:
5.040%, 05/01/2027		5,140,000		6,009,029
5.150%, 05/01/2030		14,000,000		16,943,521
3.625%, 02/01/2031		10,000,000		10,943,810
Bon Secours Mercy Health, Inc.:
3.464%, 06/01/2030		8,000,000		9,086,772
3.205%, 06/01/2050		10,800,000		11,533,490
Boral Finance Pty Ltd.,
3.000%, 11/01/2022(1)(2)		6,000,000		6,131,659
BorgWarner, Inc.,
5.000%, 10/01/2025(2)		27,301,000		32,101,292
Bristol-Myers Squibb Co.:
3.550%, 08/15/2022		6,450,000		6,795,397

The accompanying notes are an integral part of these financial statements.

Page 96

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Bristol-Myers Squibb Co.: (cont.)
3.250%, 02/20/2023	$	6,175,000	$	6,496,043
4.000%, 08/15/2023		2,477,000		2,710,691
4.125%, 06/15/2039		9,150,000		11,658,535
Broadcom, Inc.:
3.625%, 10/15/2024		19,075,000		20,957,159
3.125%, 01/15/2025		12,000,000		12,957,397
3.150%, 11/15/2025		23,600,000		25,770,060
4.250%, 04/15/2026		58,100,000		66,538,245
4.750%, 04/15/2029		20,000,000		23,854,438
Broadridge Financial Solutions, Inc.,
2.900%, 12/01/2029		11,300,000		12,377,791
Bunge Limited Finance Corp.:
3.000%, 09/25/2022		15,000,000		15,572,715
1.630%, 08/17/2025		10,000,000		10,335,140
3.250%, 08/15/2026		11,550,000		12,837,403
Burlington Northern Santa Fe LLC,
4.150%, 04/01/2045		3,000,000		3,918,262
Cameron LNG LLC,
3.302%, 01/15/2035(2)		20,000,000		22,569,153
Campbell Soup Co.,
3.950%, 03/15/2025		10,325,000		11,636,784
Canadian Natural Resources Ltd.,
6.500%, 02/15/2037(1)		982,000		1,292,363
Carlisle Companies, Inc.:
3.500%, 12/01/2024		5,000,000		5,480,766
2.750%, 03/01/2030		16,000,000		17,139,567
Carrier Global Corp.:
2.242%, 02/15/2025		8,125,000		8,597,573
2.493%, 02/15/2027		25,975,000		28,028,029
2.722%, 02/15/2030		6,861,000		7,337,244
2.700%, 02/15/2031		18,500,000		19,876,804
CCL Industries, Inc.,
3.050%, 06/01/2030(1)(2)		20,000,000		21,810,845
Celanese US Holdings LLC,
3.500%, 05/08/2024		10,640,000		11,522,246
Celulosa Arauco y Constitucion SA,
3.875%, 11/02/2027(1)		12,000,000		13,230,000
CF Industries, Inc.:
3.450%, 06/01/2023		21,000,000		21,892,500
5.150%, 03/15/2034		3,000,000		3,686,415
Charter Communications Operating LLC:
4.464%, 07/23/2022		13,773,000		14,520,095
4.908%, 07/23/2025		54,750,000		63,589,276
3.750%, 02/15/2028		5,000,000		5,606,159

The accompanying notes are an integral part of these financial statements.

Page 97

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Charter Communications Operating LLC: (cont.)
5.050%, 03/30/2029	$	33,420,000	$	40,634,161
2.300%, 02/01/2032		10,525,000		10,537,222
6.384%, 10/23/2035		22,906,000		31,382,298
Cheniere Corpus Christi Holdings LLC:
7.000%, 06/30/2024		4,000,000		4,671,098
5.875%, 03/31/2025		5,646,000		6,570,686
5.125%, 06/30/2027		18,219,000		21,552,677
Cigna Corp.:
3.900%, 02/15/2022		10,000,000		10,388,878
3.050%, 11/30/2022		10,000,000		10,473,649
3.000%, 07/15/2023		5,512,000		5,837,108
3.500%, 06/15/2024		9,000,000		9,833,491
4.125%, 11/15/2025		3,190,000		3,674,950
4.500%, 02/25/2026		9,810,000		11,500,852
2.400%, 03/15/2030		15,000,000		15,993,318
4.800%, 08/15/2038		5,000,000		6,514,195
CK Hutchison International Ltd.,
2.875%, 04/05/2022(1)(2)		8,000,000		8,203,204
CNH Industrial Capital LLC:
1.950%, 07/02/2023		22,275,000		22,930,904
4.200%, 01/15/2024		2,450,000		2,687,473
1.875%, 01/15/2026		20,000,000		20,944,927
CNH Industrial NV,
3.850%, 11/15/2027(1)		23,656,000		26,650,492
Columbia Pipeline Group, Inc.:
4.500%, 06/01/2025		6,199,000		7,129,071
5.800%, 06/01/2045		10,776,000		14,721,223
Comcast Corp.:
3.300%, 04/01/2027		9,125,000		10,375,988
3.200%, 07/15/2036		6,000,000		6,816,414
3.969%, 11/01/2047		8,622,000		10,811,302
4.950%, 10/15/2058		10,000,000		15,182,613
CommonSpirit Health,
3.347%, 10/01/2029		17,635,000		19,364,475
Conagra Brands, Inc.:
9.750%, 03/01/2021		4,548,000		4,606,043
7.125%, 10/01/2026		6,441,000		8,257,362
7.000%, 10/01/2028		4,300,000		5,797,509
5.300%, 11/01/2038		5,000,000		6,684,508
Corning, Inc.,
4.375%, 11/15/2057		9,000,000		11,254,909
Costco Wholesale Corp.:
1.375%, 06/20/2027		8,600,000		8,860,492
1.600%, 04/20/2030		15,000,000		15,370,459

The accompanying notes are an integral part of these financial statements.

Page 98

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Cox Communications, Inc.:
3.850%, 02/01/2025(2)	$	4,725,000	$	5,269,380
3.350%, 09/15/2026(2)		4,450,000		5,000,170
4.800%, 02/01/2035(2)		14,000,000		17,705,215
8.375%, 03/01/2039(2)		19,011,000		32,746,122
CSX Corp.,
4.650%, 03/01/2068		9,000,000		12,619,432
CVS Health Corp.:
3.625%, 04/01/2027		3,000,000		3,413,926
3.250%, 08/15/2029		8,000,000		9,009,876
4.780%, 03/25/2038		40,059,000		50,753,978
2.700%, 08/21/2040		5,000,000		5,058,270
5.125%, 07/20/2045		22,500,000		30,293,131
5.050%, 03/25/2048		28,300,000		38,354,380
Daimler Finance North America LLC:
3.400%, 02/22/2022(2)		6,550,000		6,764,746
2.550%, 08/15/2022(2)		30,000,000		31,019,236
1.750%, 03/10/2023(2)		20,000,000		20,533,470
Danone SA,
2.589%, 11/02/2023(1)(2)		19,600,000		20,624,181
Dell Technologies, Inc.,
6.100%, 07/15/2027(2)		5,580,000		6,935,956
Dentsply Sirona,
3.250%, 06/01/2030		25,000,000		27,843,280
Deutsche Telekom International Finance BV,
8.750%, 06/15/2030(1)		8,661,000		13,703,214
Diamond 1 Finance Corp. / Diamond 2 Finance Corp.:
5.450%, 06/15/2023(2)		15,043,000		16,637,868
6.020%, 06/15/2026(2)		67,171,000		81,944,942
Dollar General Corp.,
3.500%, 04/03/2030		7,000,000		8,035,807
DuPont de Nemours, Inc.:
4.493%, 11/15/2025		10,000,000		11,673,500
5.319%, 11/15/2038		29,000,000		39,277,799
DXC Technology Co.:
4.250%, 04/15/2024		54,525,000		59,492,048
4.125%, 04/15/2025		12,041,000		13,310,661
4.750%, 04/15/2027		36,917,000		42,263,342
Edward-Elmhurst Healthcare,
3.500%, 05/04/2023		4,000,000		4,203,122
EI du Pont de Nemours and Co.,
2.300%, 07/15/2030		7,450,000		7,924,622
Elanco Animal Health, Inc.,
5.272%, 08/28/2023		10,000,000		10,925,000

The accompanying notes are an integral part of these financial statements.

Page 99

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Element Fleet Management Corp.,
3.850%, 06/15/2025(1)(2)	$	18,492,000	$	19,709,935
Emerson Electric Co.,
2.750%, 10/15/2050		16,158,000		17,017,259
Enable Midstream Partners LP,
3.900%, 05/15/2024		5,000,000		5,112,778
Enbridge Energy Partners LP:
7.500%, 04/15/2038		4,500,000		6,386,666
7.375%, 10/15/2045		20,000,000		30,519,670
Encana Corp.,
3.900%, 11/15/2021		20,000,000		20,251,417
Energy Transfer Operating LP:
5.500%, 06/01/2027		5,468,000		6,435,827
4.900%, 03/15/2035		4,550,000		5,009,378
5.800%, 06/15/2038		7,797,000		8,957,211
6.050%, 06/01/2041		1,968,000		2,304,832
5.950%, 10/01/2043		3,550,000		4,021,284
6.125%, 12/15/2045		5,797,000		6,847,979
6.000%, 06/15/2048		10,000,000		11,783,323
6.250%, 04/15/2049		3,850,000		4,656,799
Energy Transfer Partners LP:
4.050%, 03/15/2025		21,190,000		23,245,502
6.500%, 02/01/2042		5,621,000		6,857,540
Eni SpA,
4.250%, 05/09/2029(1)(2)		18,250,000		21,619,255
Enterprise Products Operating LLC:
3.700%, 02/15/2026		8,350,000		9,458,121
5.750%, 03/01/2035		4,930,000		6,216,585
3.200%, 02/15/2052		30,725,000		31,239,602
EQT Midstream Partners LP:
4.750%, 07/15/2023		10,405,000		10,940,649
4.000%, 08/01/2024		3,000,000		3,090,660
4.125%, 12/01/2026		10,000,000		10,075,000
Equinix, Inc.,
2.150%, 07/15/2030		9,675,000		9,840,928
ERAC USA Finance LLC,
3.300%, 12/01/2026(2)		20,225,000		22,521,919
Exxon Mobil Corp.:
1.571%, 04/15/2023		3,500,000		3,599,395
2.992%, 03/19/2025		33,700,000		36,884,800
3.294%, 03/19/2027		10,000,000		11,396,350
3.482%, 03/19/2030		11,125,000		12,938,206
2.610%, 10/15/2030		14,500,000		15,838,095
FedEx Corp.,
4.950%, 10/17/2048		15,000,000		20,479,064

The accompanying notes are an integral part of these financial statements.

Page 100

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Ferguson Finance PLC:
4.500%, 10/24/2028 (Callable 07/24/2028)(1)(2)	$	34,125,000	$	40,897,862
3.250%, 06/02/2030(1)(2)		28,100,000		31,334,554
Fidelity National Information Services, Inc.:
3.500%, 04/15/2023		12,188,000		12,934,513
3.875%, 06/05/2024		582,000		640,519
4.500%, 08/15/2046		17,040,000		21,784,233
Fiserv, Inc.:
3.500%, 10/01/2022		5,410,000		5,660,216
3.200%, 07/01/2026		11,650,000		13,050,098
4.200%, 10/01/2028		5,000,000		5,961,485
2.650%, 06/01/2030		28,900,000		31,267,448
4.400%, 07/01/2049		3,500,000		4,688,180
Flex Ltd.:
3.750%, 02/01/2026(1)		15,000,000		16,778,384
4.875%, 06/15/2029(1)		14,600,000		17,245,450
FLIR Systems, Inc.,
2.500%, 08/01/2030		7,000,000		7,347,299
Florida Gas Transmission Co. LLC,
2.550%, 07/01/2030(2)		18,500,000		19,498,918
FMC Corp.:
4.100%, 02/01/2024		46,920,000		51,072,743
3.200%, 10/01/2026		5,000,000		5,568,585
Fomento Economico Mexicano SAB de CV:
2.875%, 05/10/2023(1)		5,000,000		5,225,000
4.375%, 05/10/2043(1)		1,874,000		2,363,039
3.500%, 01/16/2050(1)		26,734,000		29,749,454
Ford Motor Credit Co. LLC:
3.200%, 01/15/2021		25,000,000		25,012,500
3.336%, 03/18/2021		7,500,000		7,518,750
3.339%, 03/28/2022		5,000,000		5,050,000
2.979%, 08/03/2022		34,690,000		35,269,323
3.087%, 01/09/2023		5,900,000		6,002,925
4.140%, 02/15/2023		10,000,000		10,300,000
5.584%, 03/18/2024		9,350,000		10,085,378
3.664%, 09/08/2024		5,565,000		5,711,081
Fortune Brands Home & Security, Inc.,
3.250%, 09/15/2029		15,000,000		16,621,793
Fresenius Medical Care US Finance II, Inc.,
4.750%, 10/15/2024(2)		14,530,000		16,268,287
Fresenius Medical Care US Finance III, Inc.:
3.750%, 06/15/2029(2)		24,200,000		27,134,114
2.375%, 02/16/2031(2)		25,000,000		25,408,813
General Dynamics Corp.:
3.250%, 04/01/2025		4,000,000		4,416,743
3.500%, 04/01/2027		10,500,000		12,079,157

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
General Electric Co.:
3.450%, 05/01/2027	$	4,000,000	$	4,524,182
3.625%, 05/01/2030		10,000,000		11,428,870
6.150%, 08/07/2037		13,124,000		18,092,172
6.875%, 01/10/2039		5,000,000		7,360,411
General Motors Co.,
6.125%, 10/01/2025		16,854,000		20,443,375
General Motors Financial Co., Inc.:
4.200%, 03/01/2021		30,000,000		30,073,769
4.375%, 09/25/2021		2,675,000		2,747,232
3.450%, 01/14/2022		5,000,000		5,133,772
3.150%, 06/30/2022		6,000,000		6,211,966
1.700%, 08/18/2023		25,000,000		25,643,835
5.100%, 01/17/2024		33,000,000		36,928,586
2.900%, 02/26/2025		13,000,000		13,882,979
Genpact Luxembourg Sarl,
3.375%, 12/01/2024(1)		49,575,000		53,977,207
Gilead Sciences, Inc.,
4.600%, 09/01/2035		4,600,000		5,942,019
Glencore Finance (Canada) Ltd.,
5.550%, 10/25/2042(1)(2)		5,000,000		6,131,900
Glencore Funding LLC:
4.125%, 05/30/2023(2)		13,691,000		14,806,132
4.625%, 04/29/2024(2)		35,620,000		39,779,762
4.000%, 04/16/2025(2)		4,450,000		4,979,455
4.000%, 03/27/2027(2)		25,550,000		28,901,710
3.875%, 10/27/2027(2)		2,000,000		2,253,800
4.875%, 03/12/2029(2)		11,000,000		13,119,249
2.500%, 09/01/2030(2)		30,000,000		30,595,402
Global Payments, Inc.:
4.000%, 06/01/2023		19,700,000		21,305,107
4.800%, 04/01/2026		13,830,000		16,412,353
2.900%, 05/15/2030		14,467,000		15,752,726
Grupo Bimbo SAB de CV:
4.500%, 01/25/2022(1)(2)		17,505,000		18,191,021
3.875%, 06/27/2024(1)(2)		18,220,000		19,936,689
4.875%, 06/27/2044(1)(2)		7,400,000		9,274,743
4.700%, 11/10/2047(1)(2)		25,000,000		31,047,000
Gulf South Pipeline Co. LP,
4.000%, 06/15/2022		3,633,000		3,740,388
Gulfstream Natural Gas System LLC,
4.600%, 09/15/2025(2)		5,000,000		5,691,470
Halliburton Co.,
3.800%, 11/15/2025		551,000		617,959

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
HCA, Inc.:
5.250%, 04/15/2025	$	30,686,000	$	35,831,481
4.500%, 02/15/2027		15,000,000		17,448,028
Hewlett Packard Enterprise Co.,
4.400%, 10/15/2022		15,150,000		16,092,049
HP, Inc.:
2.200%, 06/17/2025		15,000,000		15,881,084
3.000%, 06/17/2027		35,000,000		38,619,258
Hubbell, Inc.,
3.150%, 08/15/2027		11,700,000		12,434,879
Husky Energy, Inc.,
4.400%, 04/15/2029(1)		20,000,000		22,252,760
Hutchison Whampoa International Ltd.,
3.625%, 10/31/2024(1)(2)		7,850,000		8,594,887
Hyundai Capital America:
3.000%, 03/18/2021(2)		15,000,000		15,067,177
3.750%, 07/08/2021(2)		12,950,000		13,139,186
3.950%, 02/01/2022(2)		17,222,000		17,793,060
3.100%, 04/05/2022(2)		21,255,000		21,853,786
3.000%, 06/20/2022(2)		6,222,000		6,418,054
1.250%, 09/18/2023(2)		14,000,000		14,165,932
3.400%, 06/20/2024(2)		19,025,000		20,284,454
5.875%, 04/07/2025(2)		3,000,000		3,549,220
Infor, Inc.,
1.750%, 07/15/2025(2)		17,375,000		18,048,101
Ingersoll-Rand Luxembourg Finance SA,
4.500%, 03/21/2049(1)		10,000,000		13,036,391
Ingredion, Inc.,
2.900%, 06/01/2030		26,775,000		29,489,016
International Business Machines Corp.,
4.150%, 05/15/2039		11,325,000		14,338,549
JAB Holdings BV,
2.200%, 11/23/2030(1)(2)		18,925,000		19,026,659
JM Smucker Co.:
3.500%, 03/15/2025		5,000,000		5,572,911
2.375%, 03/15/2030		9,125,000		9,658,895
Johnson Controls International PLC:
6.000%, 01/15/2036(1)		892,000		1,264,804
4.500%, 02/15/2047(1)		4,400,000		5,783,226
4.950%, 07/02/2064(1)(7)		1,713,000		2,351,567
Kansas City Southern:
4.700%, 05/01/2048		10,075,000		12,683,716
3.500%, 05/01/2050		12,000,000		13,341,650
Kellogg Co.,
2.100%, 06/01/2030		20,000,000		21,008,357

The accompanying notes are an integral part of these financial statements.

Page 103

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Keysight Technologies, Inc.,
4.600%, 04/06/2027	$	36,562,000	$	43,578,051
Kinder Morgan Energy Partners LP:
4.300%, 05/01/2024		10,000,000		11,072,343
7.300%, 08/15/2033		8,103,000		11,357,680
5.800%, 03/15/2035		2,150,000		2,700,008
6.950%, 01/15/2038		14,008,000		19,167,281
6.500%, 09/01/2039		5,359,000		6,991,006
7.500%, 11/15/2040		7,917,000		11,364,438
Kinder Morgan, Inc.:
5.000%, 02/15/2021(2)		4,155,000		4,167,262
5.625%, 11/15/2023(2)		5,017,000		5,659,986
8.050%, 10/15/2030		3,670,000		5,103,086
7.800%, 08/01/2031		16,745,000		23,913,169
7.750%, 01/15/2032		36,569,000		52,867,456
Kraft Heinz Foods Co.:
4.000%, 06/15/2023		7,000,000		7,443,657
3.000%, 06/01/2026		10,000,000		10,442,717
5.000%, 07/15/2035		14,740,000		17,868,453
L3Harris Technologies, Inc.,
3.832%, 04/27/2025		5,000,000		5,612,018
Laboratory Corp. of America Holdings,
3.200%, 02/01/2022		2,400,000		2,471,434
Lafarge SA,
7.125%, 07/15/2036(1)		893,000		1,301,759
Leidos, Inc.:
3.625%, 05/15/2025(2)		12,925,000		14,451,313
4.375%, 05/15/2030(2)		11,500,000		13,770,675
2.300%, 02/15/2031(2)		8,175,000		8,323,777
Lennar Corp.,
4.125%, 01/15/2022		496,000		507,780
Lennox International, Inc.,
3.000%, 11/15/2023		5,930,000		6,250,220
Lockheed Martin Corp.,
3.100%, 01/15/2023		5,000,000		5,254,539
LYB International Finance III LLC,
2.250%, 10/01/2030		5,925,000		6,095,607
Magellan Midstream Partners LP:
3.200%, 03/15/2025		5,000,000		5,391,528
3.950%, 03/01/2050		5,100,000		5,747,655
Marathon Petroleum Corp.:
3.625%, 09/15/2024		1,600,000		1,746,063
4.750%, 09/15/2044		1,500,000		1,723,073
Marshfield Clinic Health System, Inc.,
2.703%, 02/15/2030		23,125,000		24,236,476

The accompanying notes are an integral part of these financial statements.

Page 104

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Martin Marietta Materials, Inc.:
2.500%, 03/15/2030	$	6,200,000	$	6,605,883
6.250%, 05/01/2037		893,000		1,143,754
Masco Corp.,
4.450%, 04/01/2025		5,000,000		5,740,278
McDonald’s Corp.:
3.300%, 07/01/2025		3,000,000		3,340,701
3.500%, 07/01/2027		6,000,000		6,882,801
Microchip Technology, Inc.:
3.922%, 06/01/2021		19,981,000		20,264,715
4.333%, 06/01/2023		16,455,000		17,812,755
0.972%, 02/15/2024(2)		10,000,000		10,024,478
Microsoft Corp.:
3.950%, 08/08/2056		9,903,000		13,599,515
2.675%, 06/01/2060		2,097,000		2,272,523
Midwest Connector Capital Co. LLC,
4.625%, 04/01/2029(2)		11,300,000		11,845,287
Molex Electronic Technologies LLC,
3.900%, 04/15/2025(2)		9,365,000		9,689,621
Molson Coors Beverage Co.,
3.000%, 07/15/2026		9,889,000		10,780,710
Mosaic Co.:
4.250%, 11/15/2023		36,878,000		40,250,856
5.450%, 11/15/2033		2,000,000		2,486,515
4.875%, 11/15/2041		5,000,000		5,779,131
MPLX LP:
4.500%, 07/15/2023		18,255,000		19,882,974
5.250%, 01/15/2025		9,276,000		9,519,492
4.000%, 02/15/2025		6,000,000		6,705,297
4.875%, 06/01/2025		18,665,000		21,559,370
1.750%, 03/01/2026		17,125,000		17,722,754
4.125%, 03/01/2027		11,700,000		13,494,020
2.650%, 08/15/2030		22,125,000		23,187,277
4.500%, 04/15/2038		5,725,000		6,548,339
Mylan NV:
3.150%, 06/15/2021(1)		5,000,000		5,048,333
3.950%, 06/15/2026(1)		32,400,000		37,069,833
Mylan, Inc.:
3.125%, 01/15/2023(2)		5,000,000		5,248,262
4.550%, 04/15/2028		16,705,000		19,858,940
Newell Brands, Inc.,
3.850%, 04/01/2023		15,000,000		15,733,350
NIKE, Inc.,
2.850%, 03/27/2030		7,000,000		7,930,080

The accompanying notes are an integral part of these financial statements.

Page 105

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Norfolk Southern Corp.,
3.050%, 05/15/2050	$	15,000,000	$	16,342,335
Nutrien Ltd.:
3.375%, 03/15/2025(1)		5,125,000		5,634,064
4.200%, 04/01/2029(1)		7,000,000		8,370,046
nVent Finance Sarl,
4.550%, 04/15/2028(1)		26,190,000		28,446,355
Occidental Petroleum Corp.:
3.200%, 08/15/2026		11,000,000		10,285,000
7.500%, 05/01/2031		7,170,000		8,079,228
7.875%, 09/15/2031		6,320,000		7,046,800
ONEOK, Inc.:
7.500%, 09/01/2023		5,000,000		5,787,483
2.750%, 09/01/2024		1,200,000		1,266,166
Oracle Corp.,
2.800%, 04/01/2027		41,225,000		45,466,147
Orange SA,
9.000%, 03/01/2031(1)		29,044,000		47,774,810
Otis Worldwide Corp.,
3.362%, 02/15/2050		3,025,000		3,499,319
Pactiv LLC,
7.950%, 12/15/2025		286,000		327,470
PeaceHealth Obligated Group,
3.218%, 11/15/2050		7,200,000		7,818,362
Penske Truck Leasing Co.,
2.700%, 11/01/2024(2)		5,275,000		5,651,236
PepsiCo, Inc.,
2.750%, 03/19/2030		10,675,000		11,952,638
PerkinElmer, Inc.,
3.300%, 09/15/2029		24,200,000		27,285,775
Pernod Ricard SA,
4.250%, 07/15/2022(1)(2)		20,527,000		21,672,278
Perrigo Finance Unlimited Co.,
4.375%, 03/15/2026(1)		4,875,000		5,517,074
Phillips 66:
2.150%, 12/15/2030		12,000,000		12,182,053
5.875%, 05/01/2042		6,000,000		8,342,146
4.875%, 11/15/2044		21,130,000		26,650,355
Phillips 66 Partners LP:
3.605%, 02/15/2025		3,000,000		3,242,249
3.550%, 10/01/2026		7,000,000		7,669,398
3.150%, 12/15/2029		12,000,000		12,484,088
Plains All American Pipeline LP / PAA Finance Corp.,
3.550%, 12/15/2029		10,000,000		10,465,039

The accompanying notes are an integral part of these financial statements.

Page 106

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Quanta Services, Inc.,
2.900%, 10/01/2030	$	8,275,000	$	8,872,095
Raytheon Technologies Corp.:
3.500%, 03/15/2027		9,578,000		10,931,926
7.500%, 09/15/2029		8,000,000		11,612,120
2.250%, 07/01/2030		12,375,000		13,144,657
4.350%, 04/15/2047		9,175,000		12,049,716
3.125%, 07/01/2050		6,000,000		6,616,151
Regency Energy Partners LP /
Regency Energy Finance Corp.,
5.875%, 03/01/2022		8,955,000		9,362,688
Reliance Steel & Aluminum Co.,
2.150%, 08/15/2030		10,000,000		10,274,250
Rio Tinto Alcan, Inc.,
5.750%, 06/01/2035(1)		446,000		651,497
Rogers Communications, Inc.,
5.450%, 10/01/2043(1)		16,560,000		23,362,322
Sabine Pass Liquefaction LLC:
5.625%, 03/01/2025		17,500,000		20,410,636
5.875%, 06/30/2026		60,000,000		72,546,140
Samarco Mineracao SA,
5.750%, 10/24/2023(1)(2)(9)		4,463,000		3,202,203
Seagate HDD Cayman,
4.750%, 06/01/2023(1)		7,500,000		8,101,125
Shell International Finance BV:
2.375%, 04/06/2025(1)		8,875,000		9,518,440
3.250%, 05/11/2025(1)		5,725,000		6,345,756
2.750%, 04/06/2030(1)		8,750,000		9,680,421
4.125%, 05/11/2035(1)		10,000,000		12,510,551
Sherwin-Williams Co.,
4.500%, 06/01/2047		4,000,000		5,350,501
Shire Acquisitions Investments Ireland DAC,
2.875%, 09/23/2023(1)		26,223,000		27,807,628
SK Telecom Co. Ltd.,
6.625%, 07/20/2027(1)(2)		1,339,000		1,755,031
Smith & Nephew PLC,
2.032%, 10/14/2030(1)		14,575,000		14,847,818
Smithfield Foods, Inc.:
2.650%, 10/03/2021(2)		6,000,000		6,053,034
3.350%, 02/01/2022(2)		30,802,000		31,225,397
Sociedad Quimica y Minera de Chile SA,
3.625%, 04/03/2023(1)(2)		10,000,000		10,490,100
Solvay Finance America LLC,
4.450%, 12/03/2025(2)		61,307,000		70,094,586

The accompanying notes are an integral part of these financial statements.

Page 107

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Spectra Energy Partners LP,
4.500%, 03/15/2045	$	7,000,000	$	8,179,968
Steel Dynamics, Inc.:
2.400%, 06/15/2025		5,000,000		5,314,346
3.250%, 01/15/2031		7,000,000		7,827,717
Sunoco Logistics Partners Operations LP:
3.900%, 07/15/2026		12,000,000		13,149,207
5.400%, 10/01/2047		7,425,000		8,296,209
Suntory Holdings Ltd.:
2.550%, 06/28/2022(1)(2)		16,500,000		16,954,318
2.250%, 10/16/2024(1)(2)		8,500,000		8,892,569
Sysco Corp.:
5.650%, 04/01/2025		10,165,000		12,086,200
3.300%, 07/15/2026		11,550,000		12,846,436
Takeda Pharmaceutical Co. Ltd.,
3.175%, 07/09/2050(1)		25,000,000		26,656,841
TC PipeLines LP:
4.375%, 03/13/2025		31,115,000		35,093,135
3.900%, 05/25/2027		30,327,000		34,109,835
Telecom Italia Capital SA,
7.200%, 07/18/2036(1)		5,475,000		7,386,706
Telefonica Emisiones SA:
5.462%, 02/16/2021(1)		8,830,000		8,879,456
4.665%, 03/06/2038(1)		4,000,000		4,801,920
5.213%, 03/08/2047(1)		7,225,000		9,261,082
4.895%, 03/06/2048(1)		12,550,000		15,745,116
5.520%, 03/01/2049(1)		10,375,000		13,999,919
Teva Pharmaceutical Finance Netherlands III BV:
2.800%, 07/21/2023(1)		25,000,000		24,752,500
3.150%, 10/01/2026(1)		15,000,000		14,418,900
Textron, Inc.,
3.000%, 06/01/2030		19,675,000		21,208,652
Thermo Fisher Scientific, Inc.,
3.000%, 04/15/2023		7,975,000		8,416,713
Time Warner Cable LLC:
6.550%, 05/01/2037		893,000		1,225,840
6.750%, 06/15/2039		2,767,000		3,938,013
Timken Co.:
3.875%, 09/01/2024		11,255,000		12,095,014
4.500%, 12/15/2028		6,550,000		7,335,405
TransCanada PipeLines Ltd.,
7.625%, 01/15/2039(1)		11,800,000		18,400,620
Transcontinental Gas Pipe Line Co. LLC:
7.250%, 12/01/2026		3,500,000		4,515,701
4.600%, 03/15/2048		5,150,000		6,252,478

The accompanying notes are an integral part of these financial statements.

Page 108

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
TTX Co.:
3.600%, 01/15/2025(2)	$	5,000,000	$	5,566,357
3.900%, 02/01/2045(2)		10,250,000		12,105,474
4.600%, 02/01/2049(2)		8,325,000		11,062,399
Tyson Foods, Inc.,
5.100%, 09/23/2048		10,000,000		14,396,279
Upjohn, Inc.:
3.850%, 06/22/2040(2)		13,083,000		14,766,411
4.000%, 06/22/2050(2)		20,600,000		23,601,172
UPMC,
3.600%, 04/03/2025		45,000,000		49,976,633
Valaris PLC,
5.200%, 03/15/2025(1)(9)		4,000,000		170,000
Vale Overseas Ltd.:
6.250%, 08/10/2026(1)		32,481,000		40,276,440
3.750%, 07/08/2030(1)		13,926,000		15,492,814
8.250%, 01/17/2034(1)		8,526,000		13,100,199
6.875%, 11/21/2036(1)		3,483,000		5,104,789
6.875%, 11/10/2039(1)		16,643,000		24,777,433
Valero Energy Corp.:
2.850%, 04/15/2025		15,000,000		15,975,623
2.150%, 09/15/2027		14,150,000		14,457,961
4.000%, 04/01/2029		15,475,000		17,409,539
6.625%, 06/15/2037		2,100,000		2,793,393
Valero Energy Partners LP,
4.375%, 12/15/2026		10,000,000		11,575,566
Verisk Analytics, Inc.,
5.800%, 05/01/2021		8,325,000		8,467,324
Verizon Communications, Inc.:
3.000%, 03/22/2027		5,000,000		5,547,222
4.329%, 09/21/2028		3,077,000		3,705,415
4.500%, 08/10/2033		16,325,000		20,599,049
4.272%, 01/15/2036		8,148,000		10,105,805
5.250%, 03/16/2037		28,793,000		39,019,986
4.812%, 03/15/2039		36,839,000		48,060,843
2.650%, 11/20/2040		10,000,000		10,097,658
4.862%, 08/21/2046		2,500,000		3,378,592
Vodafone Group PLC:
7.875%, 02/15/2030(1)		3,100,000		4,599,000
5.000%, 05/30/2038(1)		6,800,000		8,897,404
4.375%, 02/19/2043(1)		15,554,000		19,317,362
5.250%, 05/30/2048(1)		16,830,000		23,443,332
Volkswagen Group of America Finance LLC:
4.000%, 11/12/2021(2)		8,845,000		9,115,015
4.250%, 11/13/2023(2)		17,350,000		19,081,892

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Volkswagen Group of America Finance LLC: (cont.)
2.850%, 09/26/2024(2)	$	14,000,000	$	14,951,902
3.350%, 05/13/2025(2)		10,000,000		10,993,550
1.250%, 11/24/2025(2)		30,000,000		30,297,396
Vulcan Materials Co.,
4.700%, 03/01/2048		3,446,000		4,452,089
Wabtec Corp.:
4.375%, 08/15/2023		2,678,000		2,826,220
4.400%, 03/15/2024		24,825,000		27,167,858
3.450%, 11/15/2026		28,315,000		31,083,378
4.950%, 09/15/2028		4,739,000		5,622,459
Walgreens Boots Alliance, Inc.:
3.300%, 11/18/2021		6,383,000		6,515,770
3.450%, 06/01/2026		5,934,000		6,563,014
3.200%, 04/15/2030		13,575,000		14,746,603
4.500%, 11/18/2034		4,750,000		5,455,386
4.800%, 11/18/2044		4,520,000		5,134,076
4.650%, 06/01/2046		4,000,000		4,459,241
Waste Connections, Inc.,
2.600%, 02/01/2030(1)		7,525,000		8,099,620
Western Digital Corp.,
4.750%, 02/15/2026		4,000,000		4,420,000
Western Gas Partners LP:
4.000%, 07/01/2022		10,463,000		10,755,755
3.950%, 06/01/2025		8,000,000		8,160,000
Western Midstream Operating LP,
4.100%, 02/01/2025		20,000,000		20,611,400
Westinghouse Air Brake Technologies Corp.,
3.200%, 06/15/2025		5,295,000		5,712,560
WestRock MWV LLC,
8.200%, 01/15/2030		7,963,000		11,347,938
Williams Companies, Inc.:
3.600%, 03/15/2022		10,176,000		10,504,226
3.700%, 01/15/2023		1,690,000		1,790,259
4.300%, 03/04/2024		7,310,000		8,054,891
4.550%, 06/24/2024		7,000,000		7,835,487
3.900%, 01/15/2025		3,160,000		3,503,601
8.750%, 03/15/2032		4,000,000		5,851,365
6.300%, 04/15/2040		8,142,000		10,828,364
4.850%, 03/01/2048		7,000,000		8,604,113
Woodside Finance Ltd.:
3.650%, 03/05/2025(1)(2)		12,300,000		13,260,630
4.500%, 03/04/2029(1)(2)		10,000,000		11,161,111
WRKCo, Inc.,
3.000%, 09/15/2024		14,895,000		16,038,224

The accompanying notes are an integral part of these financial statements.

Page 110

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Xylem, Inc.:
1.950%, 01/30/2028	$	10,000,000	$	10,544,256
2.250%, 01/30/2031		9,325,000		9,820,925
Yara International ASA,
3.800%, 06/06/2026(1)(2)		13,965,000		15,590,180
Zimmer Biomet Holdings, Inc.:
3.550%, 04/01/2025		20,996,000		23,192,047
3.550%, 03/20/2030		14,977,000		16,959,690
5.750%, 11/30/2039		9,850,000		12,929,420
Zimmer Holdings, Inc.,
3.150%, 04/01/2022		9,500,000		9,770,026
Zoetis, Inc.:
3.250%, 02/01/2023		34,200,000		35,974,550
4.700%, 02/01/2043		3,568,000		4,885,918
Total Industrials
(Cost $6,748,273,886)				7,422,028,205		22.5	%
Utilities
Ameren Corp.,
3.500%, 01/15/2031		20,000,000		23,075,079
American Electric Power Co., Inc.,
3.250%, 03/01/2050		10,175,000		10,731,716
Ausgrid Finance Pty Ltd.,
3.850%, 05/01/2023(1)(2)		5,000,000		5,279,860
Avangrid, Inc.,
3.200%, 04/15/2025		14,000,000		15,326,353
Berkshire Hathaway Energy Co.:
4.050%, 04/15/2025(2)		5,000,000		5,661,349
3.700%, 07/15/2030(2)		18,425,000		21,794,104
2.850%, 05/15/2051(2)		13,675,000		14,067,097
Consumers Energy Co.,
3.500%, 08/01/2051		9,400,000		11,499,421
Dominion Energy, Inc.:
2.450%, 01/15/2023(2)		15,000,000		15,606,458
3.375%, 04/01/2030		10,000,000		11,390,949
Duke Energy Corp.,
2.650%, 09/01/2026		10,000,000		10,895,976
Edison International,
2.950%, 03/15/2023		5,000,000		5,195,311
EDP Finance BV,
3.625%, 07/15/2024(1)(2)		19,175,000		20,927,045
Enel Finance International NV:
2.875%, 05/25/2022(1)(2)		7,000,000		7,222,401
3.625%, 05/25/2027(1)(2)		22,790,000		25,860,244
3.500%, 04/06/2028(1)(2)		8,000,000		9,111,180

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Enel Finance International NV: (cont.)
4.875%, 06/14/2029(1)(2)	$	6,615,000	$	8,259,119
6.800%, 09/15/2037(1)(2)		4,565,000		6,718,254
4.750%, 05/25/2047(1)(2)		55,875,000		74,400,746
Entergy Corp.,
2.950%, 09/01/2026		13,075,000		14,411,398
Essential Utilities, Inc.,
2.704%, 04/15/2030		14,100,000		15,285,657
Evergy, Inc.,
2.450%, 09/15/2024		6,675,000		7,077,733
Eversource Energy,
1.650%, 08/15/2030		9,925,000		9,884,792
Exelon Corp.:
4.050%, 04/15/2030		8,900,000		10,531,231
4.950%, 06/15/2035		3,500,000		4,409,080
FirstEnergy Corp.:
2.650%, 03/01/2030		4,300,000		4,313,637
3.400%, 03/01/2050		15,000,000		14,367,493
Interstate Power and Light Co.,
2.300%, 06/01/2030		9,350,000		9,887,258
ITC Holdings Corp.:
3.350%, 11/15/2027		25,581,000		28,797,025
2.950%, 05/14/2030(2)		10,000,000		10,930,294
Liberty Utilities Finance GP 1,
2.050%, 09/15/2030(2)		10,000,000		10,051,703
Mega Advance Investments Ltd.,
5.000%, 05/12/2021(1)(2)		4,909,000		4,965,797
National Rural Utilities Cooperative Finance Corp.,
8.000%, 03/01/2032		4,659,000		7,338,021
NiSource, Inc.:
3.600%, 05/01/2030		4,585,000		5,305,641
5.250%, 02/15/2043		5,779,000		7,914,775
3.950%, 03/30/2048		11,750,000		14,433,681
Oncor Electric Delivery Co. LLC,
2.750%, 05/15/2030		9,500,000		10,636,737
RGS I&M Funding Corp.,
9.820%, 12/07/2022		320,268		329,619
Southern Co.,
4.250%, 07/01/2036		5,525,000		6,776,807
Talent Yield Investments Ltd.,
4.500%, 04/25/2022(1)(2)		1,785,000		1,855,834
Xcel Energy, Inc.,
3.400%, 06/01/2030		15,000,000		17,192,588
Total Utilities
(Cost $466,855,421)				519,719,463		1.6	%

The accompanying notes are an integral part of these financial statements.

Page 112

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Financials
ABN AMRO Bank NV:
7.750%, 05/15/2023(1)(2)	$	7,200,000	$	8,244,267
4.750%, 07/28/2025(1)(2)		59,016,000		67,918,623
4.800%, 04/18/2026(1)(2)		24,705,000		28,948,856
AerCap Holdings NV:
4.875%, 01/16/2024(1)		20,000,000		21,834,126
2.875%, 08/14/2024(1)		20,000,000		20,799,720
AIA Group Ltd.,
3.200%, 03/11/2025(1)(2)		6,000,000		6,473,100
Air Lease Corp.:
4.250%, 02/01/2024		8,550,000		9,278,983
2.300%, 02/01/2025		15,000,000		15,528,664
American International Group, Inc.:
4.875%, 06/01/2022		17,698,000		18,776,907
4.125%, 02/15/2024		893,000		988,758
3.750%, 07/10/2025		12,135,000		13,633,613
3.875%, 01/15/2035		4,875,000		5,849,418
6.820%, 11/15/2037		1,410,000		2,003,090
Ameriprise Financial, Inc.,
3.000%, 04/02/2025		13,700,000		14,914,742
AmSouth Bancorporation,
6.750%, 11/01/2025		223,000		273,805
Anthem, Inc.:
2.375%, 01/15/2025		6,000,000		6,417,302
5.100%, 01/15/2044		1,584,000		2,196,662
4.375%, 12/01/2047		8,650,000		11,149,176
ANZ New Zealand (Int’l) Ltd.:
2.750%, 02/03/2021(1)(2)		3,000,000		3,005,760
3.400%, 03/19/2024(1)(2)		2,000,000		2,171,155
Aon PLC:
4.000%, 11/27/2023(1)		6,150,000		6,713,540
3.875%, 12/15/2025(1)		9,126,000		10,404,179
4.450%, 05/24/2043(1)		1,274,000		1,551,668
ASB Bank Ltd.,
3.750%, 06/14/2023(1)(2)		10,000,000		10,782,265
Australia & New Zealand Banking Group Ltd.:
4.500%, 03/19/2024(1)(2)		44,423,000		48,971,344
2.950%, 07/22/2030
(5 Year CMT Rate + 1.288%)(1)(2)(3)		5,000,000		5,275,489
2.570%, 11/25/2035
(5 Year CMT Rate + 1.700%)(1)(2)(3)		15,000,000		15,302,560
Banco Bilbao Vizcaya Argentaria SA,
1.125%, 09/18/2025(1)		10,000,000		10,072,247

The accompanying notes are an integral part of these financial statements.

Page 113

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Banco Santander SA:
3.500%, 04/11/2022(1)	$	13,000,000	$	13,499,899
2.746%, 05/28/2025(1)		7,000,000		7,472,673
5.179%, 11/19/2025(1)		16,183,000		18,976,080
4.379%, 04/12/2028(1)		13,400,000		15,629,936
3.490%, 05/28/2030(1)		5,000,000		5,603,927
2.749%, 12/03/2030(1)		12,200,000		12,574,869
Bank of America Corp.:
3.300%, 01/11/2023		7,000,000		7,421,470
4.125%, 01/22/2024		15,000,000		16,625,004
3.458%, 03/15/2025
(3 Month LIBOR USD + 0.970%)(3)		28,881,000		31,445,391
3.093%, 10/01/2025
(3 Month LIBOR USD + 1.090%)(3)		15,000,000		16,237,745
2.456%, 10/22/2025
(3 Month LIBOR USD + 0.870%)(3)		17,775,000		18,948,665
3.559%, 04/23/2027
(3 Month LIBOR USD + 1.060%)(3)		9,000,000		10,161,980
3.248%, 10/21/2027		6,000,000		6,714,556
3.419%, 12/20/2028
(3 Month LIBOR USD + 1.040%)(3)		14,000,000		15,813,617
3.194%, 07/23/2030
(3 Month LIBOR USD + 1.180%)(3)		5,000,000		5,603,449
2.496%, 02/13/2031
(3 Month LIBOR USD + 0.990%)(3)		13,000,000		13,806,868
2.592%, 04/29/2031 (SOFR + 2.150%)(3)		60,000,000		64,305,503
7.750%, 05/14/2038		1,138,000		1,940,298
Bank of New Zealand,
2.000%, 02/21/2025(1)(2)		16,000,000		16,854,791
Bank of Nova Scotia:
2.450%, 09/19/2022(1)		10,000,000		10,387,388
4.500%, 12/16/2025(1)		8,500,000		9,910,508
Bank of Tokyo-Mitsubishi UFJ Ltd.:
4.100%, 09/09/2023(1)(2)		2,911,000		3,192,860
3.750%, 03/10/2024(1)(2)		2,800,000		3,072,414
Banque Federative du Credit Mutuel SA:
2.700%, 07/20/2022(1)(2)		5,000,000		5,175,871
3.750%, 07/20/2023(1)(2)		34,100,000		36,852,516
Barclays Bank PLC,
10.180%, 06/12/2021(1)(2)		12,770,000		13,281,420
Barclays PLC:
3.250%, 01/12/2021(1)		12,175,000		12,181,570
3.684%, 01/10/2023(1)		25,475,000		26,255,780
4.610%, 02/15/2023
(3 Month LIBOR USD + 1.400%)(1)(3)		10,000,000		10,439,342

The accompanying notes are an integral part of these financial statements.

Page 114

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Barclays PLC: (cont.)
4.338%, 05/16/2024
(3 Month LIBOR USD + 1.356%)(1)(3)	$	13,000,000	$	14,070,034
3.650%, 03/16/2025(1)		8,100,000		8,911,102
3.932%, 05/07/2025
(3 Month LIBOR USD + 1.610%)(1)(3)		34,300,000		37,524,015
2.852%, 05/07/2026
(3 Month LIBOR USD + 2.452%)(1)(3)		10,000,000		10,739,405
BBVA USA:
2.875%, 06/29/2022		8,000,000		8,290,255
3.875%, 04/10/2025		36,235,000		40,633,562
Belrose Funding Trust,
2.330%, 08/15/2030(2)		13,950,000		14,356,799
Berkshire Hathaway, Inc.,
2.750%, 03/15/2023		14,675,000		15,411,122
BNP Paribas SA:
3.500%, 03/01/2023(1)(2)		8,570,000		9,119,557
3.375%, 01/09/2025(1)(2)		8,350,000		9,137,805
2.819%, 11/19/2025
(3 Month LIBOR USD + 1.111%)(1)(2)(3)		17,100,000		18,227,284
2.219%, 06/09/2026 (SOFR + 2.074%)(1)(2)(3)		15,000,000		15,699,475
4.625%, 03/13/2027(1)(2)		4,500,000		5,239,990
1.904%, 09/30/2028 (SOFR + 1.609%)(1)(2)(3)		27,000,000		27,450,028
2.588%, 08/12/2035
(5 Year CMT Rate + 2.050%)(1)(2)(3)		14,000,000		14,312,569
BNZ International Funding Ltd.:
2.750%, 03/02/2021(1)(2)		14,000,000		14,055,298
2.650%, 11/03/2022(1)(2)		20,350,000		21,207,775
3.375%, 03/01/2023(1)(2)		20,000,000		21,239,876
BPCE SA:
5.700%, 10/22/2023(1)(2)		22,955,000		25,981,350
4.000%, 04/15/2024(1)		2,500,000		2,768,054
5.150%, 07/21/2024(1)(2)		31,285,000		35,625,388
2.375%, 01/14/2025(1)(2)		12,000,000		12,682,248
4.500%, 03/15/2025(1)(2)		44,242,000		50,011,658
1.652%, 10/06/2026 (SOFR + 1.520%(1)(2)(3)		15,000,000		15,349,989
Brown & Brown, Inc.:
4.500%, 03/15/2029		23,825,000		28,202,511
2.375%, 03/15/2031		27,360,000		28,635,342
Canadian Imperial Bank of Commerce,
3.100%, 04/02/2024(1)		37,700,000		40,795,101
Capital One Financial Corp.:
3.200%, 01/30/2023		6,550,000		6,901,091
3.900%, 01/29/2024		4,550,000		4,983,965
3.300%, 10/30/2024		2,998,000		3,293,409
3.650%, 05/11/2027		26,000,000		29,808,056

The accompanying notes are an integral part of these financial statements.

Page 115

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Capital One NA,
3.375%, 02/15/2023	$	45,962,000	$	48,570,448
Citigroup, Inc.:
2.350%, 08/02/2021		6,100,000		6,171,047
2.750%, 04/25/2022		11,575,000		11,920,950
3.142%, 01/24/2023
(3 Month LIBOR USD + 0.722%)(3)		12,200,000		12,545,113
2.876%, 07/24/2023
(3 Month LIBOR USD + 0.950%)(3)		20,350,000		21,139,226
1.655%, 09/01/2023
(3 Month LIBOR USD + 1.430%)(3)		7,000,000		7,119,758
4.044%, 06/01/2024
(3 Month LIBOR USD + 1.023%)(3)		22,600,000		24,578,511
3.750%, 06/16/2024		1,000,000		1,106,146
3.352%, 04/24/2025
(3 Month LIBOR USD + 0.897%)(3)		5,650,000		6,142,544
3.700%, 01/12/2026		4,500,000		5,113,611
3.106%, 04/08/2026 (SOFR + 2.750%)(3)		20,000,000		21,851,241
3.887%, 01/10/2028
(3 Month LIBOR USD + 1.563%)(3)		20,600,000		23,609,217
3.668%, 07/24/2028
(3 Month LIBOR USD + 1.390%)(3)		3,142,000		3,562,100
3.520%, 10/27/2028
(3 Month LIBOR USD + 1.151%)(3)		1,500,000		1,695,832
2.572%, 06/03/2031 (SOFR + 2.107%)(3)		25,000,000		26,646,504
Citizens Bank NA:
2.250%, 04/28/2025		20,000,000		21,221,401
3.750%, 02/18/2026		12,120,000		13,771,658
Citizens Financial Group, Inc.:
2.850%, 07/27/2026		10,000,000		11,129,273
3.250%, 04/30/2030		28,025,000		31,581,359
CNA Financial Corp.:
7.250%, 11/15/2023		4,000,000		4,743,060
4.500%, 03/01/2026		14,000,000		16,469,663
3.450%, 08/15/2027		12,000,000		13,594,223
3.900%, 05/01/2029		8,000,000		9,401,204
Comerica Bank,
4.000%, 07/27/2025		10,000,000		11,283,816
Commonwealth Bank of Australia:
4.500%, 12/09/2025(1)(2)		15,000,000		17,305,025
3.610%, 09/12/2034
(5 Year CMT Rate + 2.050%)(1)(2)(3)		10,000,000		10,986,113
3.743%, 09/12/2039(1)(2)		23,500,000		27,659,496
Cooperatieve Rabobank UA:
4.625%, 12/01/2023(1)		14,630,000		16,305,889

The accompanying notes are an integral part of these financial statements.

Page 116

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Cooperatieve Rabobank UA: (cont.)
4.375%, 08/04/2025(1)	$	20,397,000	$	23,278,605
3.750%, 07/21/2026(1)		20,829,000		23,540,113
Credit Agricole SA:
3.375%, 01/10/2022(1)(2)		10,180,000		10,489,707
3.750%, 04/24/2023(1)(2)		5,000,000		5,367,394
4.375%, 03/17/2025(1)(2)		4,204,000		4,718,427
3.250%, 01/14/2030(1)(2)		6,800,000		7,461,057
4.000%, 01/10/2033
(5 Year Swap Rate USD + 1.644%)(1)(2)(3)		8,000,000		8,947,820
Credit Suisse AG,
3.625%, 09/09/2024(1)		4,325,000		4,799,056
Credit Suisse Group AG:
3.574%, 01/09/2023(1)(2)		17,000,000		17,515,235
4.207%, 06/12/2024
(3 Month LIBOR USD + 1.240%)(1)(2)(3)		8,325,000		9,019,491
2.593%, 09/11/2025 (SOFR + 1.560%)(1)(2)(3)		12,250,000		12,890,350
2.193%, 06/05/2026 (SOFR + 2.044%)(1)(2)(3)		15,000,000		15,675,786
4.282%, 01/09/2028(1)(2)		17,403,000		20,111,167
3.869%, 01/12/2029
(3 Month LIBOR USD + 1.410%)(1)(2)(3)		11,000,000		12,458,614
4.194%, 04/01/2031 (SOFR + 3.730%)(1)(2)(3)		20,000,000		23,539,472
Credit Suisse Group Funding Guernsey Ltd.:
3.800%, 06/09/2023(1)		14,550,000		15,670,214
4.550%, 04/17/2026(1)		2,000,000		2,352,999
Credit Suisse USA, Inc.,
7.125%, 07/15/2032		5,063,000		7,858,450
CyrusOne LP / CyrusOne Finance Corp.,
2.150%, 11/01/2030		11,000,000		10,721,590
Daiwa Securities Group, Inc.,
3.129%, 04/19/2022(1)(2)		12,000,000		12,386,640
Danske Bank A/S,
1.621%, 09/11/2026
(1 Year CMT Rate + 1.350%)(1)(2)(3)		10,000,000		10,045,148
Deutsche Bank AG:
3.125%, 01/13/2021(1)		1,625,000		1,625,732
3.150%, 01/22/2021(1)		3,000,000		3,003,327
4.250%, 10/14/2021(1)		36,125,000		37,043,548
5.000%, 02/14/2022(1)		10,000,000		10,455,287
3.300%, 11/16/2022(1)		22,175,000		23,124,964
3.700%, 05/30/2024(1)		10,000,000		10,757,187
2.222%, 09/18/2024 (SOFR + 2.159%)(1)(3)		52,000,000		53,494,414
2.129%, 11/24/2026 (SOFR + 1.870%)(1)(3)		17,000,000		17,398,450
Discover Bank:
3.350%, 02/06/2023		8,600,000		9,074,614

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Discover Bank: (cont.)
4.200%, 08/08/2023	$	20,000,000	$	21,866,294
3.450%, 07/27/2026		22,000,000		24,604,654
4.650%, 09/13/2028		13,747,000		16,445,244
Discover Financial Services:
3.950%, 11/06/2024		10,000,000		11,104,360
4.100%, 02/09/2027		9,150,000		10,541,537
DNB Bank ASA,
1.127%, 09/16/2026
(5 Year CMT Rate + 0.850%)(1)(2)(3)		10,000,000		10,105,969
Federation des Caisses Desjardins du Quebec,
2.050%, 02/10/2025(1)(2)		12,100,000		12,720,422
FirstMerit Bank NA,
4.270%, 11/25/2026		4,600,000		5,276,228
Five Corners Funding Trust,
4.419%, 11/15/2023(2)		11,330,000		12,567,513
Five Corners Funding Trust II,
2.850%, 05/15/2030(2)		30,000,000		33,186,329
FMR LLC,
4.950%, 02/01/2033(2)		1,750,000		2,354,776
GE Capital Funding LLC:
4.050%, 05/15/2027(2)		8,975,000		10,267,346
4.550%, 05/15/2032(2)		10,000,000		12,001,181
GE Capital International Funding Co. Unlimited Co.,
4.418%, 11/15/2035(1)		24,309,000		29,013,910
Globe Life, Inc.:
3.800%, 09/15/2022		12,475,000		13,149,335
4.550%, 09/15/2028		5,000,000		6,000,390
Goldman Sachs Group, Inc.:
3.000%, 04/26/2022		20,000,000		20,162,286
2.908%, 06/05/2023
(3 Month LIBOR USD + 1.053%)(3)		12,000,000		12,426,606
2.905%, 07/24/2023
(3 Month LIBOR USD + 0.990%)(3)		8,000,000		8,309,114
1.824%, 11/29/2023
(3 Month LIBOR USD + 1.600%)(3)		5,000,000		5,171,305
3.850%, 07/08/2024		3,000,000		3,317,011
3.500%, 01/23/2025		3,000,000		3,310,978
3.500%, 04/01/2025		5,000,000		5,554,949
3.750%, 05/22/2025		5,000,000		5,613,752
3.272%, 09/29/2025
(3 Month LIBOR USD + 1.201%)(3)		15,000,000		16,431,382
1.093%, 12/09/2026 (SOFR + 0.789%)(3)		10,000,000		10,109,922
1.972%, 10/28/2027
(3 Month LIBOR USD + 1.750%)(3)		10,000,000		10,510,922

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Goldman Sachs Group, Inc.: (cont.)
3.691%, 06/05/2028
(3 Month LIBOR USD + 1.510%)(3)	$	6,775,000	$	7,804,956
4.223%, 05/01/2029
(3 Month LIBOR USD + 1.301%)(3)		10,000,000		11,863,631
3.800%, 03/15/2030		30,000,000		35,299,735
6.345%, 02/15/2034		1,053,000		1,470,822
Guardian Life Global Funding,
3.400%, 04/25/2023(2)		6,950,000		7,424,194
Guardian Life Insurance Co. of America:
4.875%, 06/19/2064(2)		5,000,000		6,672,751
3.700%, 01/22/2070(2)		13,115,000		14,702,426
4.850%, 01/24/2077(2)		22,227,000		31,171,232
Hanover Insurance Group, Inc.,
2.500%, 09/01/2030		10,550,000		11,011,327
Harborwalk Funding Trust,
5.077%, 02/15/2069
(3 Month LIBOR USD + 3.191%(2)(3)		23,170,000		30,084,286
Hartford Financial Services Group, Inc.,
3.600%, 08/19/2049		7,000,000		8,214,338
Health Care Service Corp. A Mutual Legal Reserve Co.,
2.200%, 06/01/2030(2)		6,125,000		6,407,539
Highmark, Inc.,
4.750%, 05/15/2021(2)		4,378,000		4,449,114
HSBC Bank PLC,
7.650%, 05/01/2025(1)		2,525,000		3,140,081
HSBC Bank USA NA,
7.000%, 01/15/2039		4,200,000		6,671,810
HSBC Holdings PLC:
3.262%, 03/13/2023
(3 Month LIBOR USD + 1.055%)(1)(3)		17,600,000		18,179,853
3.600%, 05/25/2023(1)		2,275,000		2,447,018
3.950%, 05/18/2024
(3 Month LIBOR USD + 0.987%)(1)(3)		6,000,000		6,472,005
3.803%, 03/11/2025
(3 Month LIBOR USD + 1.211%)(1)(3)		26,550,000		28,987,965
1.645%, 04/18/2026 (SOFR + 1.538%)(1)(3)		15,000,000		15,341,424
4.292%, 09/12/2026
(3 Month LIBOR USD + 1.348%)(1)(3)		7,450,000		8,490,618
4.375%, 11/23/2026 (1)		10,000,000		11,538,265
1.589%, 05/24/2027 (SOFR + 1.290%)(1)(3)		12,500,000		12,711,465
2.013%, 09/22/2028 (SOFR + 1.732%)(1)(3)		25,000,000		25,593,172
4.950%, 03/31/2030(1)		7,000,000		8,775,183
3.973%, 05/22/2030
(3 Month LIBOR USD + 1.610%)(1)(3)		2,000,000		2,309,500

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
HSBC USA, Inc.,
9.125%, 05/15/2021	$	625,000	$	643,267
Huntington Bancshares, Inc.:
3.150%, 03/14/2021		4,732,000		4,746,599
2.300%, 01/14/2022		12,075,000		12,292,520
Invesco Finance PLC:
3.125%, 11/30/2022(1)		5,902,000		6,198,603
3.750%, 01/15/2026(1)		4,900,000		5,527,706
Jackson National Life Global Funding,
3.250%, 01/30/2024(2)		23,475,000		25,239,170
Jefferies Group LLC:
4.850%, 01/15/2027		4,600,000		5,380,866
4.150%, 01/23/2030		10,000,000		11,655,751
6.250%, 01/15/2036		1,390,000		1,853,796
John Hancock Life Insurance Co.,
7.375%, 02/15/2024(2)		13,339,000		15,724,693
JPMorgan Chase & Co.:
1.445%, 10/24/2023
(3 Month LIBOR USD + 1.230%)(3)		15,000,000		15,268,667
3.559%, 04/23/2024
(3 Month LIBOR USD + 0.730%)(3)		15,000,000		16,077,236
3.125%, 01/23/2025		14,000,000		15,333,626
2.301%, 10/15/2025 (SOFR + 1.160%)(3)		10,000,000		10,615,260
2.005%, 03/13/2026 (SOFR + 1.585%)(3)		50,000,000		52,519,592
2.083%, 04/22/2026 (SOFR + 1.850%)(3)		76,000,000		80,265,618
1.045%, 11/19/2026 (SOFR + 0.800%)(3)		25,000,000		25,282,500
2.522%, 04/22/2031 (SOFR + 2.040%)(3)		28,000,000		30,096,138
5.600%, 07/15/2041		4,106,000		6,211,567
KeyBank NA:
3.180%, 05/22/2022		6,500,000		6,739,450
3.400%, 05/20/2026		18,965,000		21,293,343
LeasePlan Corp. NV,
2.875%, 10/24/2024(1)(2)		59,600,000		62,976,821
Lexington Realty Trust,
2.700%, 09/15/2030		7,000,000		7,286,857
Liberty Mutual Group, Inc.:
4.250%, 06/15/2023(2)		591,000		643,039
4.569%, 02/01/2029(2)		2,087,000		2,564,374
3.951%, 10/15/2050(2)		2,231,000		2,671,630
Liberty Mutual Insurance Co.,
7.697%, 10/15/2097(2)		465,000		747,603
Life Storage LP,
3.500%, 07/01/2026		6,819,000		7,695,687
Lincoln National Corp.,
3.050%, 01/15/2030		24,650,000		27,493,367

The accompanying notes are an integral part of these financial statements.

Page 120

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Lloyds Bank PLC:
2.907%, 11/07/2023
(3 Month LIBOR USD + 0.810%)(1)(3)	$	18,669,000	$	19,504,250
3.870%, 07/09/2025
(1 Year CMT Rate + 3.500%)(1)(3)		15,000,000		16,537,283
2.438%, 02/05/2026
(1 Year CMT Rate + 1.000%)(1)(3)		15,725,000		16,612,835
3.574%, 11/07/2028
(3 Month LIBOR USD + 1.205%)(1)(3)		10,000,000		11,292,417
Macquarie Bank Ltd.:
4.875%, 06/10/2025(1)(2)		23,717,000		26,912,203
3.624%, 06/03/2030(1)(2)		12,550,000		13,739,292
Macquarie Group Ltd.:
3.189%, 11/28/2023
(3 Month LIBOR USD + 1.023%)(1)(2)(3)		29,067,000		30,386,679
4.150%, 03/27/2024
(3 Month LIBOR USD + 1.330%)(1)(2)(3)		24,000,000		25,788,122
Manulife Financial Corp.:
4.150%, 03/04/2026(1)		10,000,000		11,631,611
5.375%, 03/04/2046(1)		5,150,000		7,545,010
Marsh & McLennan Companies, Inc.:
2.250%, 11/15/2030		5,000,000		5,293,548
5.875%, 08/01/2033		4,700,000		6,759,964
4.350%, 01/30/2047		3,450,000		4,570,967
Massachusetts Mutual Life Insurance Co.:
3.729%, 10/15/2070(2)		16,676,000		18,411,365
4.900%, 04/01/2077(2)		11,175,000		15,351,403
MBIA Insurance Corp.,
11.497%, 01/15/2033
(3 Month LIBOR USD + 11.260%)(2)(3)(9)		714,000		249,900
MetLife, Inc.:
6.500%, 12/15/2032		466,000		705,016
4.875%, 11/13/2043		3,375,000		4,801,460
4.050%, 03/01/2045		12,375,000		15,866,594
Metropolitan Life Global Funding I,
2.950%, 04/09/2030(2)		10,000,000		11,259,883
Metropolitan Life Insurance Co.,
7.800%, 11/01/2025(2)		6,300,000		8,154,540
Mitsubishi UFJ Financial Group, Inc.:
2.950%, 03/01/2021(1)		5,076,000		5,097,269
2.190%, 09/13/2021(1)		6,844,000		6,931,877
2.665%, 07/25/2022(1)		9,000,000		9,311,517
3.455%, 03/02/2023(1)		10,650,000		11,347,474
2.801%, 07/18/2024(1)		10,000,000		10,719,386
2.193%, 02/25/2025(1)		25,000,000		26,409,888

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Mizuho Financial Group, Inc.:
2.632%, 04/12/2021(1)(2)	$	13,000,000	$	13,082,069
2.953%, 02/28/2022(1)		12,575,000		12,951,344
2.601%, 09/11/2022(1)		13,000,000		13,491,197
3.922%, 09/11/2024
(3 Month LIBOR USD + 1.000%)(1)(3)		5,000,000		5,436,555
2.555%, 09/13/2025
(3 Month LIBOR USD + 1.100%)(1)(3)		20,000,000		21,126,386
1.979%, 09/08/2031
(3 Month LIBOR USD + 1.270%)(1)(3)		20,000,000		20,355,410
Morgan Stanley:
2.500%, 04/21/2021		8,000,000		8,049,612
2.750%, 05/19/2022		20,000,000		20,654,475
1.615%, 10/24/2023
(3 Month LIBOR USD + 1.400%)(3)		8,000,000		8,151,877
3.737%, 04/24/2024
(3 Month LIBOR USD + 0.847%)(3)		6,455,000		6,945,306
3.875%, 04/29/2024		1,650,000		1,827,899
3.700%, 10/23/2024		4,000,000		4,451,192
3.591%, 07/22/2028
(3 Month LIBOR USD + 1.340%)(3)		12,000,000		13,700,339
3.772%, 01/24/2029
(3 Month LIBOR USD + 1.140%)(3)		1,000,000		1,159,287
3.622%, 04/01/2031 (SOFR + 3.120%)(3)		10,000,000		11,631,027
National Australia Bank Ltd.:
2.332%, 08/21/2030(1)(2)		49,282,000		50,101,433
3.933%, 08/02/2034
(5 Year CMT Rate + 1.880%)(1)(2)(3)		10,000,000		11,230,206
National Securities Clearing Corp.,
1.500%, 04/23/2025(2)		12,124,000		12,550,241
Nationwide Building Society:
3.766%, 03/08/2024
(3 Month LIBOR USD + 1.064%)(1)(2)(3)		20,000,000		21,277,485
4.000%, 09/14/2026(1)(2)		43,507,000		48,434,551
4.302%, 03/08/2029
(3 Month LIBOR USD + 1.452%)(1)(2)(3)		20,000,000		23,239,707
3.960%, 07/18/2030
(3 Month LIBOR USD + 1.855%)(1)(2)(3)		10,125,000		11,796,155
4.125%, 10/18/2032
(5 Year Mid Swap Rate USD + 1.849%)(1)(2)(3)		7,000,000		7,655,400
Nationwide Financial Services, Inc.:
5.375%, 03/25/2021(2)		16,905,000		17,088,661
3.900%, 11/30/2049(2)		10,000,000		11,136,894
Nationwide Mutual Insurance Co.:
9.375%, 08/15/2039(2)		9,000,000		15,669,618
4.350%, 04/30/2050(2)		25,000,000		29,368,053

The accompanying notes are an integral part of these financial statements.

Page 122

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
New York Life Insurance Co.:
6.750%, 11/15/2039(2)	$	12,026,000	$	18,645,212
3.750%, 05/15/2050(2)		17,000,000		20,335,971
4.450%, 05/15/2069(2)		10,000,000		13,437,082
Nomura Holdings, Inc.:
2.648%, 01/16/2025(1)		20,000,000		21,359,376
1.851%, 07/16/2025(1)		23,825,000		24,760,757
Nordea Bank AB,
4.250%, 09/21/2022(1)(2)		15,793,000		16,764,675
Pacific Life Global Funding II,
1.200%, 06/24/2025(2)		22,300,000		22,604,953
Peachtree Corners Funding Trust,
3.976%, 02/15/2025(2)		12,295,000		13,632,908
People’s United Bank NA,
4.000%, 07/15/2024		11,400,000		12,288,803
Pine Street Trust I,
4.572%, 02/15/2029(2)		7,825,000		9,276,745
PNC Bank NA,
4.200%, 11/01/2025		2,678,000		3,087,493
Principal Financial Group, Inc.:
3.300%, 09/15/2022		1,860,000		1,951,500
3.125%, 05/15/2023		4,667,000		4,960,748
4.300%, 11/15/2046		2,325,000		2,964,139
Principal Life Global Funding II:
1.250%, 06/23/2025(2)		16,000,000		16,334,407
3.000%, 04/18/2026(2)		13,400,000		14,901,174
Protective Life Corp.:
4.300%, 09/30/2028(2)		10,000,000		11,689,274
8.450%, 10/15/2039		2,650,000		4,174,379
Prudential Financial, Inc.:
6.625%, 12/01/2037		5,000,000		7,511,215
3.935%, 12/07/2049		11,426,000		13,883,113
Raymond James Financial, Inc.,
4.650%, 04/01/2030		9,700,000		11,898,504
Regions Financial Corp.,
2.250%, 05/18/2025		25,000,000		26,511,934
Reliance Standard Life Global Funding II,
2.500%, 10/30/2024(2)		22,800,000		23,648,014
Royal Bank of Canada,
4.650%, 01/27/2026(1)		7,773,000		9,176,253
Royal Bank of Scotland Group PLC:
3.498%, 05/15/2023
(3 Month LIBOR USD + 1.480%)(1)(3)		10,650,000		11,057,347
3.875%, 09/12/2023(1)		10,000,000		10,850,371

The accompanying notes are an integral part of these financial statements.

Page 123

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Royal Bank of Scotland Group PLC: (cont.)
4.269%, 03/22/2025
(3 Month LIBOR USD + 1.762%)(1)(3)	$	27,351,000	$	30,258,172
3.073%, 05/22/2028
(1 Year CMT Rate + 2.550%)(1)(3)		15,000,000		16,280,569
4.892%, 05/18/2029
(3 Month LIBOR USD + 1.754%)(1)(3)		10,000,000		12,017,476
5.076%, 01/27/2030
(3 Month LIBOR USD + 1.905%)(1)(3)		7,000,000		8,606,274
4.445%, 05/08/2030
(3 Month LIBOR USD + 1.871%)(1)(3)		35,000,000		41,696,931
Santander Holdings USA, Inc.,
3.500%, 06/07/2024		5,695,000		6,152,390
Santander UK Group Holdings PLC:
3.125%, 01/08/2021(1)		2,600,000		2,600,562
3.571%, 01/10/2023(1)		5,000,000		5,152,052
3.373%, 01/05/2024
(3 Month LIBOR USD + 1.080%)(1)(3)		5,967,000		6,280,042
4.796%, 11/15/2024
(3 Month LIBOR USD + 1.570%)(1)(3)		5,250,000		5,839,858
3.823%, 11/03/2028
(3 Month LIBOR USD + 1.400%)(1)(3)		6,000,000		6,767,482
Santander UK PLC,
�� 5.000%, 11/07/2023(1)(2)		21,921,000		24,197,619
SMBC Aviation Capital Finance DAC,
3.000%, 07/15/2022(1)(2)		8,000,000		8,210,621
Societe Generale SA:
3.250%, 01/12/2022(1)(2)		8,000,000		8,218,900
4.250%, 09/14/2023(1)(2)		8,000,000		8,724,788
5.000%, 01/17/2024(1)(2)		20,000,000		22,076,482
3.875%, 03/28/2024(1)(2)		15,300,000		16,681,411
2.625%, 10/16/2024(1)(2)		23,000,000		24,370,406
2.625%, 01/22/2025(1)(2)		31,125,000		32,964,161
4.250%, 04/14/2025(1)(2)		21,032,000		23,169,332
4.250%, 08/19/2026(1)(2)		12,000,000		13,428,310
1.488%, 12/14/2026
(1 Year CMT Rate + 1.100%)(1)(2)(3)		12,000,000		12,106,009
Standard Chartered PLC:
3.050%, 01/15/2021(1)(2)		4,500,000		4,503,378
4.247%, 01/20/2023
(3 Month LIBOR USD + 1.150%)(1)(2)(3)		10,000,000		10,369,978
3.885%, 03/15/2024
(3 Month LIBOR USD + 1.080%)(1)(2)(3)		31,557,000		33,567,016
3.785%, 05/21/2025
(3 Month LIBOR USD + 1.560%)(1)(2)(3)		26,294,000		28,513,410

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Standard Chartered PLC: (cont.)
2.819%, 01/30/2026
(3 Month LIBOR USD + 1.209%)(1)(2)(3)	$	14,700,000	$	15,571,093
4.644%, 04/01/2031
(5 Year CMT Rate + 3.850%)(1)(2)(3)		14,700,000		17,782,585
5.700%, 03/26/2044(1)(2)		6,000,000		8,048,066
Stifel Financial Corp.:
4.250%, 07/18/2024		17,850,000		20,054,651
4.000%, 05/15/2030		39,140,000		44,726,758
Sumitomo Mitsui Banking Corp.,
3.950%, 07/19/2023(1)		1,850,000		2,013,031
Sumitomo Mitsui Financial Group, Inc.:
2.442%, 10/19/2021(1)		15,775,000		16,033,863
2.784%, 07/12/2022(1)		10,000,000		10,367,278
3.102%, 01/17/2023(1)		12,000,000		12,660,292
2.696%, 07/16/2024(1)		12,000,000		12,811,773
2.448%, 09/27/2024(1)		19,000,000		20,235,163
2.130%, 07/08/2030(1)		7,575,000		7,895,412
SunTrust Banks, Inc.:
2.900%, 03/03/2021		14,150,000		14,179,280
2.700%, 01/27/2022		12,800,000		13,102,071
3.300%, 05/15/2026		3,925,000		4,388,807
Synchrony Financial:
3.750%, 08/15/2021		10,225,000		10,371,356
4.375%, 03/19/2024		1,538,000		1,693,287
4.250%, 08/15/2024		26,864,000		29,682,484
4.500%, 07/23/2025		23,127,000		26,017,111
3.700%, 08/04/2026		17,635,000		19,573,607
3.950%, 12/01/2027		44,825,000		50,277,124
TD Ameritrade Holding Corp.:
2.950%, 04/01/2022		4,625,000		4,759,086
3.625%, 04/01/2025		7,000,000		7,785,676
Trinity Acquisition PLC:
4.400%, 03/15/2026(1)		27,305,000		31,812,710
6.125%, 08/15/2043(1)		19,286,000		28,570,614
UBS AG,
1.750%, 04/21/2022(1)(2)		10,000,000		10,177,928
UBS Group AG,
1.364%, 01/30/2027
(1 Year CMT Rate + 1.080%(1)(2)(3)		10,950,000		11,072,598
UBS Group Funding Switzerland AG:
2.650%, 02/01/2022(1)(2)		14,150,000		14,509,727
3.491%, 05/23/2023(1)(2)		14,825,000		15,427,240
2.859%, 08/15/2023
(3 Month LIBOR USD + 0.954%)(1)(2)(3)		42,658,000		44,222,373
4.253%, 03/23/2028(1)(2)		17,150,000		20,078,652

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
UnitedHealth Group, Inc.,
2.750%, 05/15/2040	$	7,000,000	$	7,593,777
USAA Capital Corp.,
2.125%, 05/01/2030(2)		5,000,000		5,257,454
Voya Financial, Inc.:
3.125%, 07/15/2024		21,875,000		23,640,750
3.650%, 06/15/2026		5,800,000		6,633,609
Wells Fargo & Co.:
3.069%, 01/24/2023		10,000,000		10,285,414
1.444%, 10/31/2023
(3 Month LIBOR USD + 1.230%)(3)		5,000,000		5,078,999
3.000%, 02/19/2025		5,000,000		5,435,720
2.406%, 10/30/2025
(3 Month LIBOR USD + 0.825%)(3)		11,500,000		12,159,756
2.164%, 02/11/2026
(3 Month LIBOR USD + 0.750%)(3)		15,000,000		15,773,117
3.000%, 04/22/2026		8,000,000		8,804,781
2.393%, 06/02/2028 (SOFR + 2.100%)(3)		45,850,000		48,812,918
3.068%, 04/30/2041 (SOFR + 2.530%)(3)		25,000,000		27,194,976
3.900%, 05/01/2045		5,000,000		6,249,870
5.013%, 04/04/2051
(3 Month LIBOR USD + 4.240%)(3)		7,000,000		9,948,520
Wells Fargo Bank NA,
5.850%, 02/01/2037		10,000,000		14,226,279
Westpac Banking Corp.:
2.894%, 02/04/2030
(5 Year CMT Rate + 1.350%)(1)(3)		11,425,000		11,977,218
4.322%, 11/23/2031
(5 Year Mid Swap Rate USD + 2.236%)(1)(3)		8,350,000		9,521,297
4.110%, 07/24/2034
(5 Year CMT Rate + 2.000%)(1)(3)		10,000,000		11,411,259
2.668%, 11/15/2035
(5 Year CMT Rate + 1.750%)(1)(3)		13,600,000		14,010,176
4.421%, 07/24/2039(1)		10,000,000		12,766,431
Willis North America, Inc.:
3.600%, 05/15/2024		9,000,000		9,827,170
2.950%, 09/15/2029		7,500,000		8,205,883
5.050%, 09/15/2048		10,200,000		14,347,136
Willis Towers Watson PLC,
5.750%, 03/15/2021(1)		13,879,000		14,018,760
Total Financials
(Cost $5,318,118,962)				5,766,280,653		17.5	%
Total Corporate Bonds
(Cost $12,533,248,269)				13,708,028,321		41.6	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Municipal Bonds
Atlanta Independent School System,
5.557%, 03/01/2026	$	4,465,000	$	5,474,090
California Housing Finance Agency:
3.656%, 02/01/2029 (Callable 08/01/2025)		19,650,000		20,999,366
2.794%, 08/01/2036 (Callable 08/01/2025)		6,325,000		6,434,169
California Qualified School
Bond Joint Powers Authority,
7.155%, 03/01/2027		6,695,000		8,060,044
City of Berwyn IL:
5.790%, 12/01/2022		820,000		854,407
5.790%, 12/01/2022		2,525,000		2,590,398
City of Vernon CA,
4.500%, 08/01/2022		7,265,000		7,546,591
County of Cuyahoga OH,
9.125%, 10/01/2023		700,000		781,186
County of Riverside CA,
2.617%, 02/15/2024		20,000,000		21,117,400
Dallas/Fort Worth International Airport:
2.246%, 11/01/2031 (Callable 11/01/2030)		2,500,000		2,589,075
2.416%, 11/01/2032 (Callable 11/01/2030)		5,000,000		5,209,500
2.516%, 11/01/2033 (Callable 11/01/2030)		1,220,000		1,271,643
Eaton Community City School District,
5.390%, 08/25/2027 (Callable 02/01/2021)		2,305,000		2,309,679
Iowa Tobacco Settlement Authority,
6.500%, 06/01/2023 (Callable 02/01/2021)		3,010,000		3,054,578
Kentucky Housing Corp.,
3.500%, 01/01/2040 (Callable 07/01/2025)		2,830,000		2,931,965
Kentucky Public Energy Authority,
1.396%, 12/01/2049
(1 Month LIBOR USD + 1.300%)
(Callable 03/01/2025)(3)		28,000,000		28,409,920
Louisiana Housing Corp.,
2.100%, 12/01/2038 (Callable 09/01/2024)		2,325,941		2,374,669
Maryland Community Development
Administration Housing Revenue,
3.160%, 09/01/2041 (Callable 09/01/2025)		8,900,000		9,199,663
Massachusetts Educational Financing Authority,
3.850%, 05/25/2033		25,056,474		25,692,909
Minnesota Housing Finance Agency:
2.730%, 08/01/2046 (Callable 07/01/2025)		3,824,303		3,950,122
3.200%, 06/01/2047 (Callable 07/01/2026)		8,874,749		9,215,806
3.000%, 10/01/2047 (Callable 01/01/2027)		11,668,574		12,017,114
New Hampshire Business Finance Authority,
2.872%, 07/01/2035 (Callable 01/01/2035)		18,210,000		18,924,378

The accompanying notes are an integral part of these financial statements.

Page 127

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
New Hampshire Housing Finance Authority:
3.050%, 01/01/2021	$	720,000	$	720,000
3.750%, 07/01/2034 (Callable 07/01/2023)		525,000		534,298
4.000%, 07/01/2036 (Callable 07/01/2025)		3,490,000		3,595,014
New Jersey Higher Education
Student Assistance Authority:
3.500%, 12/01/2039 (Callable 12/01/2028)		17,910,000		18,695,174
3.500%, 12/01/2039 (Callable 12/01/2028)		18,250,000		19,057,380
New Jersey Turnpike Authority,
3.223%, 01/01/2036 (Callable 07/01/2025)(2)		90,230,000		95,664,553
New York State Dormitory Authority,
2.219%, 07/01/2035		15,000,000		15,108,000
North Carolina Housing Finance Agency,
2.812%, 07/01/2035 (Callable 01/01/2024)		1,425,000		1,450,308
Premier Health Partners,
2.911%, 11/15/2026		20,004,000		21,018,464
State Public School Building Authority,
2.966%, 04/01/2027		5,800,000		6,204,144
Texas Private Activity Bond Surface Transportation Corp.,
3.922%, 12/31/2049		8,800,000		10,033,496
Three Rivers Local School District,
5.209%, 09/15/2027 (Callable 02/01/2021)		2,365,000		2,371,456
West Contra Costa Unified School District,
6.250%, 08/01/2030		1,785,000		2,451,055
Western Michigan University Homer
Stryker MD School of Medicine,
4.750%, 11/15/2028		12,905,000		15,042,068
Westlake City School District,
5.227%, 12/01/2026 (Callable 02/01/2021)		3,570,000		3,579,425
Total Municipal Bonds
(Cost $401,559,391)				416,533,507		1.3	%
Residential Mortgage-Backed Securities
U.S. Government Agency Issues
Fannie Mae REMIC Trust:
Series 1991-86, Class Z, 6.500%, 07/25/2021		255		257
Series 1993-58, Class H, 5.500%, 04/25/2023		21,715		22,483
Series 1998-66, Class C, 6.000%, 12/25/2028		18,918		19,989
Federal Gold Loan Mortgage Corp. (FGLMC):
2.500%, 04/01/2028		1,683,470		1,760,345
6.500%, 06/01/2029		76,271		85,476
3.000%, 12/01/2030		6,073,678		6,554,650
3.000%, 04/01/2031		5,409,346		5,787,122
3.000%, 02/01/2032		49,489,755		53,197,722
3.000%, 03/01/2032		1,873,196		1,983,074

The accompanying notes are an integral part of these financial statements.

Page 128

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Federal Gold Loan Mortgage Corp. (FGLMC): (cont.)
3.500%, 05/01/2032	$	13,222,363	$	14,297,981
3.000%, 07/01/2032		12,455,150		13,384,790
3.500%, 07/01/2032		17,123,207		18,445,137
3.000%, 04/01/2033		1,678,120		1,779,722
5.000%, 08/01/2033		3,441,843		3,953,998
3.500%, 01/01/2034		12,989,039		14,035,734
5.000%, 09/01/2035		6,937,905		8,071,312
5.500%, 01/01/2036		118,580		139,434
5.000%, 03/01/2036		3,049,815		3,544,324
6.000%, 12/01/2036		106,157		126,525
4.000%, 03/01/2037		3,112,181		3,372,177
3.500%, 02/01/2038		77,639,256		82,367,302
5.000%, 02/01/2038		1,670,014		1,938,945
5.500%, 05/01/2038		356,042		418,699
5.500%, 01/01/2039		7,521,823		8,781,708
4.500%, 11/01/2039		2,775,786		3,104,384
4.500%, 11/01/2039		2,381,785		2,663,597
4.500%, 12/01/2039		14,789,541	��	16,602,987
5.000%, 03/01/2040		619,493		720,565
4.500%, 08/01/2040		484,305		542,759
2.000%, 09/01/2040		34,834,906		36,264,290
4.500%, 09/01/2040		2,012,586		2,260,456
4.000%, 01/01/2041		9,943,557		10,910,622
4.000%, 01/01/2041		19,471,972		21,366,670
4.500%, 03/01/2041		1,442,846		1,614,922
3.500%, 10/01/2041		6,048,800		6,533,526
4.000%, 03/01/2042		4,837,255		5,333,415
3.500%, 06/01/2042		3,070,850		3,304,488
3.500%, 07/01/2042		7,859,878		8,452,848
3.000%, 08/01/2042		11,257,011		11,941,809
3.000%, 10/01/2042		4,428,348		4,710,305
3.000%, 11/01/2042		32,493,602		35,277,079
3.500%, 12/01/2042		9,021,941		9,780,896
3.000%, 01/01/2043		18,461,903		19,634,972
3.500%, 01/01/2043		14,962,601		16,270,920
3.000%, 02/01/2043		2,479,041		2,636,235
3.000%, 04/01/2043		12,185,745		13,170,524
3.000%, 04/01/2043		4,427,552		4,806,949
3.000%, 04/01/2043		6,262,884		6,661,104
3.500%, 04/01/2043		41,769,635		45,280,670
4.000%, 04/01/2043		16,030,539		18,128,704
3.500%, 05/01/2043		8,864,870		9,644,050
3.000%, 06/01/2043		12,897,793		13,719,643
3.000%, 08/01/2043		4,084,104		4,352,061

The accompanying notes are an integral part of these financial statements.

Page 129

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Federal Gold Loan Mortgage Corp. (FGLMC): (cont.)
3.500%, 11/01/2043	$	6,548,514	$	7,097,398
3.500%, 01/01/2044		7,859,027		8,542,278
3.500%, 02/01/2044		26,792,379		29,019,911
4.000%, 03/01/2044		3,600,084		3,918,443
3.500%, 05/01/2044		31,269,591		34,193,590
4.000%, 05/01/2044		14,373,258		15,767,161
4.000%, 07/01/2044		2,909,997		3,171,410
3.500%, 10/01/2044		50,706,612		54,362,968
4.000%, 10/01/2044		7,613,085		8,354,655
3.000%, 01/01/2045		16,545,673		17,460,240
3.500%, 01/01/2045		21,415,365		23,277,104
4.500%, 01/01/2045		23,351,846		26,200,977
3.500%, 06/01/2045		14,676,637		16,049,771
3.500%, 07/01/2045		55,223,336		59,833,336
3.000%, 10/01/2045		28,461,476		30,277,808
4.000%, 10/01/2045		4,481,455		4,861,390
4.000%, 11/01/2045		9,691,119		10,513,385
3.000%, 01/01/2046		85,359,914		93,148,791
3.000%, 01/01/2046		66,951,398		73,081,019
3.500%, 01/01/2046		25,578,530		27,780,240
4.000%, 02/01/2046		55,328,383		60,833,319
4.000%, 02/01/2046		13,162,995		14,260,868
4.000%, 04/01/2046		7,760,475		8,533,391
3.500%, 05/01/2046		5,943,881		6,396,817
3.500%, 08/01/2046		25,040,995		27,354,557
3.000%, 10/01/2046		48,732,666		52,758,030
3.000%, 10/01/2046		55,116,415		59,334,597
3.000%, 12/01/2046		57,681,626		60,774,951
4.000%, 01/01/2047		45,288,437		49,959,531
3.000%, 02/01/2047		34,452,884		36,117,008
4.500%, 04/01/2047		32,195,688		35,226,528
3.000%, 05/01/2047		49,877,836		53,820,453
4.000%, 09/01/2047		17,149,612		18,377,855
4.000%, 08/01/2048		26,301,410		28,488,679
3.000%, 11/01/2049		76,724,314		82,965,860
4.000%, 05/01/2050		157,409,233		173,557,421
Federal Home Loan Mortgage Corp. (FHLMC),
Series 1081, Class K, 7.000%, 05/15/2021		540		544
Federal National Mortgage Association (FNMA):
5.000%, 11/01/2021		191		200
2.500%, 12/01/2027		5,527,686		5,777,778
2.500%, 05/01/2028		8,062,965		8,522,413
5.000%, 05/01/2028		115,488		128,809
4.500%, 08/01/2029		884,304		966,463

The accompanying notes are an integral part of these financial statements.

Page 130

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Federal National Mortgage Association (FNMA): (cont.)
4.500%, 09/01/2029	$	1,041,209	$	1,140,786
2.500%, 04/01/2030		2,911,152		3,088,921
2.500%, 05/01/2030		9,354,018		9,948,175
3.500%, 11/01/2030		24,370,200		26,440,945
3.000%, 12/01/2030		10,136,728		10,860,519
3.000%, 12/01/2030		16,186,025		17,340,675
2.500%, 09/01/2031		34,412,901		36,661,635
3.500%, 01/01/2032		31,775,856		33,867,964
2.500%, 02/01/2032		5,604,875		5,938,214
3.000%, 09/01/2032		2,233,881		2,387,335
3.000%, 10/01/2032		1,626,774		1,709,984
3.000%, 11/01/2032		4,324,194		4,620,457
3.500%, 11/01/2032		3,571,080		3,845,261
2.500%, 12/01/2032		37,995,412		39,698,226
3.000%, 12/01/2032		3,220,990		3,405,703
6.000%, 03/01/2033		30,351		35,850
3.500%, 10/01/2033		15,956,125		17,253,801
4.500%, 10/01/2033		11,375,638		12,577,970
5.000%, 10/01/2033		12,444,940		14,393,399
3.000%, 11/01/2033		70,982,242		76,959,236
5.000%, 11/01/2033		34,805		40,256
4.000%, 01/01/2034		5,040,760		5,505,185
5.500%, 04/01/2034		4,202,822		4,903,852
3.000%, 06/01/2034		23,446,150		25,159,666
4.000%, 06/01/2034		6,612,192		7,219,743
4.000%, 09/01/2034		7,617,101		8,317,062
5.500%, 09/01/2034		110,547		129,257
6.000%, 11/01/2034		30,607		36,756
3.500%, 01/01/2035		42,882,634		46,460,347
5.500%, 02/01/2035		374,333		438,933
4.000%, 03/01/2035		37,766,526		40,552,968
3.000%, 06/01/2035		10,324,584		10,914,930
5.000%, 07/01/2035		3,198,830		3,715,861
5.000%, 10/01/2035		1,541,603		1,790,085
5.000%, 02/01/2036		2,253,195		2,618,560
3.000%, 11/01/2036		32,697,628		34,569,543
5.500%, 11/01/2036		147,090		172,831
2.500%, 12/01/2036		18,842,266		19,951,966
5.500%, 04/01/2037		935,710		1,089,195
4.000%, 05/01/2037		31,017,006		33,516,478
4.000%, 02/01/2038		28,104,441		30,343,354
2.500%, 04/01/2038		46,164,393		49,050,013
3.000%, 05/01/2038		25,032,381		26,279,482
4.000%, 05/01/2038		17,118,311		19,016,418

The accompanying notes are an integral part of these financial statements.

Page 131

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Federal National Mortgage Association (FNMA): (cont.)
4.000%, 04/01/2039	$	8,539,070	$	9,411,776
4.500%, 04/01/2039		11,657,012		13,070,442
5.000%, 06/01/2039		7,528,713		8,738,855
5.000%, 06/01/2039		11,069,632		12,740,462
4.500%, 11/01/2039		136,891		153,708
4.000%, 08/01/2040		983,881		1,078,675
4.000%, 10/01/2040		21,821,736		24,110,639
3.500%, 12/01/2040		6,203,218		6,698,432
4.000%, 12/01/2040		5,846,055		6,388,941
3.500%, 02/01/2041		9,628,441		10,396,804
4.500%, 02/01/2041		41,772,688		46,698,901
3.500%, 03/01/2041		13,668,998		14,759,058
4.500%, 05/01/2041		5,290,193		5,913,022
4.000%, 06/01/2041		10,953,659		11,976,618
4.500%, 07/01/2041		5,649,679		6,343,932
5.000%, 07/01/2041		8,454,885		9,813,702
3.500%, 09/01/2041		13,857,206		14,946,169
4.000%, 09/01/2041		1,490,789		1,630,036
4.000%, 10/01/2041		4,176,948		4,566,654
3.500%, 11/01/2041		5,255,477		5,659,256
3.500%, 12/01/2041		24,267,834		26,174,937
4.000%, 12/01/2041		6,188,165		6,785,887
4.000%, 01/01/2042		7,727,421		8,474,731
4.500%, 01/01/2042		8,004,033		8,980,263
4.000%, 02/01/2042		29,539,506		32,410,138
3.000%, 04/01/2042		46,164,314		49,324,008
3.000%, 05/01/2042		5,611,565		5,951,103
3.500%, 07/01/2042		72,722,959		79,526,301
3.500%, 08/01/2042		6,341,371		6,896,645
3.000%, 10/01/2042		15,761,641		17,237,139
3.000%, 03/01/2043		26,114,954		27,841,351
3.000%, 03/01/2043		4,872,085		5,288,070
3.000%, 05/01/2043		14,043,428		14,938,868
3.000%, 05/01/2043		26,339,402		28,473,536
3.500%, 05/01/2043		27,220,948		29,573,600
3.000%, 06/01/2043		6,095,183		6,484,494
3.000%, 07/01/2043		2,418,693		2,577,931
4.000%, 07/01/2043		21,457,122		23,574,487
3.000%, 08/01/2043		4,032,737		4,297,574
3.000%, 09/01/2043		62,737,262		68,407,181
3.500%, 09/01/2043		36,804,096		39,872,356
4.500%, 09/01/2043		8,638,921		9,687,210
3.000%, 10/01/2043		80,484,555		85,999,032
3.500%, 10/01/2043		42,276,540		45,932,231

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Federal National Mortgage Association (FNMA): (cont.)
3.000%, 11/01/2043	$	19,422,654	$	20,648,195
4.000%, 11/01/2043		6,664,656		7,345,838
4.000%, 01/01/2045		5,233,737		5,758,116
3.500%, 02/01/2045		28,191,011		30,527,765
4.000%, 02/01/2045		13,588,263		14,881,654
3.500%, 04/01/2045		20,709,732		22,517,133
4.000%, 09/01/2045		4,158,385		4,534,561
4.000%, 10/01/2045		5,647,821		6,158,727
4.000%, 11/01/2045		21,242,477		23,079,726
3.500%, 12/01/2045		20,173,056		21,578,696
4.500%, 02/01/2046		22,882,477		25,659,870
3.000%, 05/01/2046		11,372,612		12,339,167
3.500%, 05/01/2046		31,900,384		34,196,653
3.000%, 07/01/2046		7,870,397		8,539,324
4.500%, 08/01/2046		19,031,536		21,216,523
3.500%, 09/01/2046		8,088,806		8,843,406
2.500%, 10/01/2046		21,214,160		22,399,500
3.000%, 11/01/2046		37,052,044		39,467,534
3.000%, 11/01/2046		18,559,347		19,558,826
3.500%, 11/01/2046		35,117,528		37,608,827
3.000%, 12/01/2046		21,234,906		23,004,436
3.500%, 05/01/2047		2,313,602		2,463,293
4.000%, 08/01/2047		45,685,981		49,281,225
3.500%, 10/01/2047		11,489,081		12,176,310
4.000%, 10/01/2047		30,258,586		32,510,958
4.000%, 11/01/2047		25,679,007		27,579,169
4.500%, 11/01/2047		11,110,540		12,119,026
3.500%, 12/01/2047		101,103,403		107,236,569
4.000%, 12/01/2047		40,330,776		43,264,740
4.500%, 12/01/2047(8)		5,783,931		6,280,674
3.500%, 01/01/2048		8,513,395		9,027,246
3.500%, 02/01/2048		58,305,396		61,766,421
4.000%, 04/01/2048		95,446,941		102,164,972
4.000%, 07/01/2048		23,630,795		26,043,789
4.000%, 09/01/2048		9,869,836		10,516,134
4.500%, 11/01/2048		34,514,147		37,382,453
5.000%, 11/01/2048		37,049,528		42,122,925
4.000%, 01/01/2049		7,155,062		7,787,357
4.500%, 01/01/2049		20,061,928		22,229,055
3.000%, 02/01/2049		21,324,992		22,801,162
3.500%, 06/01/2049		57,627,700		60,843,001
3.500%, 01/01/2050		47,002,865		51,351,472
3.000%, 05/01/2050		58,273,643		63,455,619
2.500%, 11/01/2050		71,777,176		76,118,649

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Federal National Mortgage Association (FNMA): (cont.)
2.500%, 12/01/2050	$	72,058,542	$	76,198,740
2.500%, 12/01/2050(8)		106,675,000		113,709,822
3.500%, 05/01/2052		74,005,313		81,011,444
3.000%, 11/01/2059		78,421,361		85,127,586
Government National Mortgage Association (GNMA):
6.000%, 11/20/2033		28,615		33,192
5.000%, 07/20/2040		1,166,933		1,334,418
3.500%, 10/20/2041		5,575,790		6,072,657
3.500%, 01/15/2042		9,566,731		10,432,152
4.000%, 06/20/2042		6,100,198		6,746,670
3.500%, 09/20/2042		2,402,994		2,616,682
3.500%, 01/20/2043		48,969,709		53,312,619
4.000%, 10/20/2043		9,099,711		10,056,250
4.000%, 09/20/2044		34,287,397		37,838,385
4.000%, 01/20/2045		7,379,395		8,140,748
3.500%, 03/20/2045		10,871,304		12,030,212
3.000%, 04/20/2045		16,051,271		17,123,277
3.500%, 04/20/2045		19,800,231		21,260,082
4.000%, 08/20/2045		6,923,186		7,586,020
4.500%, 01/20/2046		10,276,302		11,447,027
3.500%, 04/20/2046		64,270,726		69,449,369
4.000%, 04/20/2046		7,501,826		8,218,189
3.500%, 05/20/2046		41,064,216		44,458,005
4.000%, 05/20/2046		18,159,464		19,875,601
3.500%, 06/20/2046		69,338,682		75,442,569
3.000%, 11/20/2046		31,963,759		33,915,750
5.000%, 04/20/2047		1,750,066		1,944,411
3.000%, 06/20/2047		28,774,732		30,575,934
4.500%, 06/20/2047		30,111,856		32,759,724
4.500%, 07/20/2047		7,483,854		8,137,056
4.500%, 09/20/2047(6)		9,821,092		10,718,256
4.000%, 01/20/2048		14,896,280		16,086,186
3.500%, 02/20/2050		139,984,787		151,107,954
Seasoned Credit Risk Transfer Trust:
Series 2019-4, Class MA, 3.000%, 02/25/2059		56,076,657		59,805,525
Series 2020-2, Class MT, 2.000%, 11/25/2059(6)		79,447,042		81,885,033
Series 2020-3, Class MT, 2.000%, 05/25/2060		55,202,394		56,863,787
Total U.S. Government Agency Issues
(Cost $5,769,742,042)				6,014,309,283		18.3	%
Non-U.S. Government Agency Issues
Alternative Loan Trust:
Series 2006-43CB, Class 2A1, 6.000%, 02/25/2022(6)		22,298		22,414
Series 2006-28CB, Class A17, 6.000%, 10/25/2036(6)		503,152		367,509

The accompanying notes are an integral part of these financial statements.

Page 134

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Argent Securities Inc. Asset-Backed
Pass-Through Certificates:
Series 2005-W3, Class A2D, 0.828%, 11/25/2035
(1 Month LIBOR USD + 0.680%)(3)	$	941,609	$	939,715
Series 2005-W5, Class A1, 0.618%, 01/25/2036
(1 Month LIBOR USD + 0.470%)(3)		20,195,549		19,993,434
Arroyo Mortgage Trust:
Series 2018-1, Class A1, 3.763%, 04/25/2048(2)(4)		16,872,250		17,121,857
Series 2019-3, Class A1, 2.962%, 10/25/2048(2)(4)		30,915,050		31,871,382
Series 2020-1, Class A1A, 1.662%, 03/25/2055(2)		29,139,367		29,416,704
Asset Backed Securities Corp. Home Equity Loan Trust:
Series 2006-HE1, Class A1, 0.363%, 01/25/2036
(1 Month LIBOR USD + 0.215%)(3)		598,965		597,123
Series 2006-HE3, Class A2, 0.313%, 03/25/2036
(1 Month LIBOR USD + 0.165%)(3)		8,053,677		7,965,054
Series 2006-HE6, Class A1, 0.293%, 11/25/2036
(1 Month LIBOR USD + 0.145%)(3)		19,082,607		18,432,365
Banc of America Alternative Loan Trust:
Series 2007-1, Class 1A1, 4.520%, 04/25/2022(4)(6)		115,711		110,711
Series 2005-9, Class 1CB3, 5.500%, 10/25/2035(6)		102,016		101,395
Series 2005-11, Class 1CB4, 5.500%, 12/25/2035(6)		56,684		56,678
Series 2006-5, Class CB7, 6.000%, 06/25/2046(6)		242,628		236,138
Bayview Financial Trust,
Series 2007-B, Class 1A2, 6.831%, 08/28/2037(7)		1,201,128		1,196,846
Bear Stearns ALT-A Trust:
Series 2004-4, Class A1, 0.748%, 06/25/2034
(1 Month LIBOR USD + 0.600%)(3)		743,687		749,716
Series 2005-4, Class 1A1, 0.588%, 04/25/2035
(1 Month LIBOR USD + 0.440%)(3)		1,033,270		1,033,605
Series 2005-7, Class 12A1, 0.688%, 08/25/2035
(1 Month LIBOR USD + 0.540%)(3)		207,547		207,443
Bear Stearns Asset Backed Securities I Trust,
Series 2004-AC2, Class 2A, 5.000%, 05/25/2034		158,466		156,612
Chase Mortgage Finance Trust,
Series 2006-A1, Class 2A3, 3.259%, 09/25/2036(4)		792,648		723,235
Citigroup Global Markets Mortgage Securities VII, Inc.,
Series 2003-UP2, Class A2, 7.000%, 06/25/2033(7)		103,685		107,631
Citigroup Mortgage Loan Trust, Inc.,
Series 2005-9, Class 2A2, 5.500%, 11/25/2035(6)		2,280		2,280
Countrywide Asset-Backed Certificates:
Series 2005-13, Class AF3, 5.430%, 02/25/2033(4)(6)		236,350		225,170
Series 2004-S1, Class A3, 5.115%, 02/25/2035(7)		112,533		112,364
Series 2005-10, Class AF6, 4.915%, 12/25/2035(4)		39,771		41,000
Series 2006-10, Class 1AF3, 5.971%, 12/25/2035(4)		361,583		347,212

The accompanying notes are an integral part of these financial statements.

Page 135

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Credit Suisse First Boston Mortgage Securities Corp.,
Series 2003-AR26, Class 8A1, 2.891%, 11/25/2033(4)	$	4,096,203	$	4,047,841
CWABS Asset-Backed Certificates Trust:
Series 2004-15, Class AF6, 4.613%, 04/25/2035(4)		2,934		2,952
Series 2005-1, Class AF6, 5.030%, 06/25/2035(4)		10,117		10,256
Series 2005-17, Class 1AF5, 5.564%, 03/25/2036(4)		120,165		123,680
Deutsche Mortgage Securities, Inc. Mortgage Loan Trust,
Series 2004-4, Class 1A6, 6.000%, 04/25/2034(7)		676		687
First Franklin Mortgage Loan Trust,
Series 2006-FF1, Class 2A4, 0.828%, 01/25/2036
(1 Month LIBOR USD + 0.680%)(3)		907,211		907,063
First Horizon Alternative Mortgage Securities Trust:
Series 2006-FA6, Class 3A1, 5.750%, 11/25/2021		7,018		6,392
Series 2006-FA8, Class 2A1, 5.750%, 01/25/2022(6)		86,503		53,397
Fremont Home Loan Trust,
Series 2006-A, Class 1A1, 0.293%, 05/25/2036
(1 Month LIBOR USD + 0.145%)(3)		16,585,356		16,117,767
GE Capital Mortgage Services, Inc. Trust,
Series 1999-HE1, Class A7, 6.265%, 04/25/2029		67		68
GSAA Home Equity Trust,
Series 2004-6, Class A1, 0.948%, 06/25/2034
(1 Month LIBOR USD + 0.800%)(3)		658,355		662,025
GSAMP Trust:
Series 2005-WMC2, Class A1B, 0.768%, 11/25/2035
(1 Month LIBOR USD + 0.620%)(3)		1,235,246		1,235,343
Series 2005-WMC2, Class A2C, 0.848%, 11/25/2035
(1 Month LIBOR USD + 0.700%)(3)		1,474,385		1,482,536
HomeBanc Mortgage Trust,
Series 2005-3, Class A1, 0.628%, 07/25/2035
(1 Month LIBOR USD + 0.480%)(3)		630,876		631,255
IMC Home Equity Loan Trust,
Series 1997-5, Class A10, 6.880%, 11/20/2028		171		170
Impac CMB Trust:
Series 2004-4, Class 2A2, 4.966%, 09/25/2034(7)		65,118		69,231
Series 2004-5, Class 1A2, 0.848%, 10/25/2034
(1 Month LIBOR USD + 0.700%)(3)		2,166,477		2,247,214
Series 2004-6, Class 1A1, 0.948%, 10/25/2034
(1 Month LIBOR USD + 0.800%)(3)		1,566,635		1,566,206
J.P. Morgan Alternative Loan Trust,
Series 2006-A1, Class 2A1, 3.524%, 03/25/2036(4)		199,099		186,314
J.P. Morgan Mortgage Trust:
Series 2005-A4, Class 1A1, 2.588%, 07/25/2035(4)		476,121		486,659
Series 2007-A1, Class 5A2, 3.059%, 07/25/2035(4)		1,550,611		1,537,061
Series 2007-A1, Class 5A5, 3.059%, 07/25/2035(4)		2,347,876		2,331,650
Series 2006-A7, Class 2A2, 3.116%, 01/25/2037(4)(6)		93,600		86,809

The accompanying notes are an integral part of these financial statements.

Page 136

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
J.P. Morgan Mortgage Trust: (cont.)
Series 2006-A7, Class 2A4R, 3.116%, 01/25/2037(4)(6)	$	399,900	$	370,885
Series 2007-A2, Class 2A3, 3.549%, 04/25/2037(4)(6)		1,022,302		926,190
MASTR Asset Backed Securities Trust,
Series 2006-NC1, Class A4, 0.748%, 01/25/2036
(1 Month LIBOR USD + 0.600%)(3)		242,211		242,173
Merrill Lynch Mortgage Investors Trust:
Series 2004-F, Class A1A, 1.858%, 12/25/2029(4)		3,613,616		3,672,758
Series 2005-A10, Class A, 0.568%, 02/25/2036
(1 Month LIBOR USD + 0.420%)(3)		10,048,737		9,902,096
MetLife, Inc.,
Series 2019-1A, Class A1A, 3.750%, 04/25/2058(2)(4)		14,866,390		15,936,318
Morgan Stanley Mortgage Loan Trust,
Series 2004-7AR, Class 2A1, 2.849%, 09/25/2034(4)		1,494,717		1,504,060
MortgageIT Trust,
Series 2005-2, Class 1A1, 0.668%, 05/25/2035
(1 Month LIBOR USD + 0.520%)(3)		736,080		729,244
New Residential Mortgage Loan Trust:
Series 2017-2A, Class A3, 4.000%, 03/25/2057(2)(4)		9,270,085		10,024,172
Series 2017-3A, Class A1, 4.000%, 04/25/2057(2)(4)		12,932,475		13,752,880
Series 2017-4A, Class A1, 4.000%, 05/25/2057(2)(4)		16,415,644		17,815,080
Series 2018-1A, Class A1A, 4.000%, 12/25/2057(2)(4)		9,862,919		10,665,324
Series 2020-1A, Class A1B, 3.500%, 10/25/2059(2)(4)		19,363,916		20,670,297
RALI Series Trust,
Series 2004-QS6, Class A1, 5.000%, 06/15/2021(6)		6,170		5,962
RAMP Series Trust,
Series 2005-RS1, Class AI6, 4.713%, 11/25/2034		623		629
Renaissance Home Equity Loan Trust,
Series 2007-1, Class AF3, 5.612%, 04/25/2037(7)		2,482,525		1,012,298
Specialty Underwriting & Residential Finance Trust,
Series 2004-BC4, Class A1A, 0.818%, 10/25/2035
(1 Month LIBOR USD + 0.670%)(3)		1,042,252		1,039,536
Structured Adjustable Rate Mortgage Loan Trust,
Series 2004-12, Class 3A1, 2.651%, 09/25/2034(4)		1,604,982		1,624,646
Structured Asset Securities Corp.,
Series 2005-7XS, Class 1A4B, 5.940%, 04/25/2035(7)		4,454		4,636
Structured Asset Securities Corp. Mortgage Loan Trust,
Series 2006-OPT1, Class A6, 0.298%, 04/25/2036
(1 Month LIBOR USD + 0.150%)(3)		9,090,597		8,662,938
Thornburg Mortgage Securities Trust,
Series 2003-5, Class 3A, 2.307%, 10/25/2043(4)		7,286,534		7,175,049
Towd Point Mortgage Trust:
Series 2015-3, Class A1A, 3.500%, 03/25/2054(2)(4)		780,963		784,550
Series 2015-5, Class A1, 3.500%, 05/25/2055(2)(4)		1,592,077		1,609,319
Series 2016-3, Class A1, 2.250%, 08/25/2055(2)(4)		669,194		675,543

The accompanying notes are an integral part of these financial statements.

Page 137

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Towd Point Mortgage Trust: (cont.)
Series 2016-2, Class A1, 3.000%, 08/25/2055(2)(4)	$	4,093,127	$	4,152,588
Series 2016-5, Class A1, 2.500%, 10/25/2056(2)(4)		4,438,892		4,525,187
Series 2017-1, Class A1, 2.750%, 10/25/2056(2)(4)		21,250,292		21,779,456
Series 2017-6, Class A1, 2.750%, 10/25/2057(2)(4)		36,969,289		38,062,989
Series 2018-1, Class A1, 3.000%, 01/28/2058(2)(4)		1,367,701		1,421,394
Series 2018-6, Class A1A, 3.750%, 03/25/2058(2)(4)		31,169,237		32,853,184
Series 2019-1, Class A1, 3.750%, 03/25/2058(2)(4)		21,179,865		22,756,886
Series 2018-4, Class A1, 3.000%, 06/25/2058(2)(4)		22,843,562		24,242,780
Series 2019-4, Class A1, 2.900%, 10/25/2059(2)(4)		62,514,302		65,987,534
Series 2020-2, Class A1A, 1.636%, 04/25/2060(2)(4)		16,891,703		17,193,623
Series 2020-4, Class A1, 1.750%, 10/25/2060(2)		109,669,119		112,151,786
WaMu Mortgage Pass-Through Certificates Trust:
Series 2004-CB2, Class 3A, 6.000%, 08/25/2034		4,742,761		5,168,599
Series 2004-CB3, Class 2A, 6.500%, 10/25/2034		2,141,369		2,242,659
Series 2004-AR14, Class A1, 2.897%, 01/25/2035(4)		5,041,511		5,146,274
Total Non-U.S. Government Agency Issues
(Cost $638,155,980)				652,419,691		2.0	%
Total Residential Mortgage-Backed Securities
(Cost $6,407,898,022)				6,666,728,974		20.3	%
Commercial Mortgage-Backed Securities
U.S. Government Agency Issues
Fannie Mae REMIC Trust,
Series 2014-M2, Class A2, 3.513%, 12/25/2023(4)		7,815,987		8,362,620
Freddie Mac Multifamily Structured
Pass Through Certificates:
Series K720, Class A2, 2.716%, 06/25/2022		17,950,000		18,385,043
Series K721, Class A2, 3.090%, 08/25/2022(4)		25,545,000		26,391,188
Series K028, Class A2, 3.111%, 02/25/2023		47,010,000		49,454,243
Series K029, Class A2, 3.320%, 02/25/2023		27,398,000		28,973,739
Series K723, Class A2, 2.454%, 08/25/2023		28,425,000		29,797,623
Series K037, Class A2, 3.490%, 01/25/2024		69,525,000		75,494,604
Series K048, Class A2, 3.284%, 06/25/2025(4)		60,430,000		67,275,758
Series K050, Class A2, 3.334%, 08/25/2025(4)		82,739,000		92,513,281
Series K734, Class A2, 3.208%, 02/25/2026		21,500,000		23,931,345
Series K057, Class A2, 2.570%, 07/25/2026		21,420,000		23,436,136
Series K058, Class A2, 2.653%, 08/25/2026		19,865,000		21,932,372
Series K063, Class A2, 3.430%, 01/25/2027(4)		67,604,857		77,556,434
Series K064, Class A2, 3.224%, 03/25/2027		56,345,903		64,211,459
Series K065, Class A2, 3.243%, 04/25/2027		31,065,000		35,474,950
Series K066, Class A2, 3.117%, 06/25/2027		11,100,000		12,609,731
Series K067, Class A2, 3.194%, 07/25/2027		62,034,045		70,956,669
Series K068, Class A2, 3.244%, 08/25/2027		27,963,000		32,081,709
Series K069, Class A2, 3.187%, 09/25/2027(4)		25,488,779		29,193,876

The accompanying notes are an integral part of these financial statements.

Page 138

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Freddie Mac Multifamily Structured
Pass Through Certificates: (cont.)
Series K071, Class A2, 3.286%, 11/25/2027	$	25,529,000	$	29,440,556
Series K072, Class A2, 3.444%, 12/25/2027		6,050,000		7,031,527
Series K073, Class A2, 3.350%, 01/25/2028		1,350,000		1,561,854
Series K074, Class A2, 3.600%, 01/25/2028		21,722,000		25,469,716
Series K076, Class A2, 3.900%, 04/25/2028		18,299,000		21,873,316
Series K077, Class A2, 3.850%, 05/25/2028(4)		68,650,000		81,829,860
Series K078, Class A2, 3.854%, 06/25/2028		59,788,633		71,273,784
Series K080, Class A2, 3.926%, 07/25/2028(4)		42,725,000		51,335,938
Series K082, Class A2, 3.920%, 09/25/2028(4)		56,545,000		68,025,993
Series K083, Class A2, 4.050%, 09/25/2028(4)		1,000,000		1,212,871
Series K156, Class A3, 3.700%, 06/25/2033(4)		11,088,000		13,474,904
Series K-1510, Class A3, 3.794%, 01/25/2034		13,525,000		16,743,367
Total U.S. Government Agency Issues
(Cost $1,088,732,513)				1,177,306,466		3.6	%
Non-U.S. Government Agency Issues
BANK:
Series 2017-BNK4, Class A4, 3.625%, 05/17/2050		44,535,000		50,890,563
Series 2017-BNK8, Class A4, 3.488%, 11/17/2050		66,833,000		76,262,862
Series 2020-BN29, Class A4, 1.997%, 11/18/2053		63,275,000		65,548,357
Series 2017-BNK9, Class A4, 3.538%, 11/17/2054		93,773,000		107,475,814
Series 2017-BNK5, Class A5, 3.390%, 06/17/2060		22,501,000		25,481,008
Benchmark Mortgage Trust:
Series 2020-B19, Class A5, 1.850%, 09/17/2053		53,725,000		55,130,817
Series 2020-B21, Class A5, 1.978%, 12/17/2053		9,000,000		9,301,274
CD Mortgage Trust,
Series 2016-CD1, Class A4, 2.724%, 08/12/2049		46,415,000		50,506,125
CFCRE Commercial Mortgage Trust,
Series 2016-C4, Class A4, 3.283%, 05/10/2058		29,732,980		32,289,023
Citigroup Commercial Mortgage Trust:
Series 2013-GC11, Class A4, 3.093%, 04/10/2046		34,503,388		36,185,287
Series 2014-GC19, Class A3, 3.753%, 03/12/2047		6,361,490		6,871,933
Series 2014-GC25, Class A4, 3.635%, 10/10/2047		16,838,590		18,451,971
Series 2015-GC27, Class A5, 3.137%, 02/10/2048		59,202,541		64,187,703
Series 2015-GC35, Class A4, 3.818%, 11/13/2048		34,430,000		38,955,252
Series 2017-P8, Class A4, 3.465%, 09/16/2050		22,000,000		25,051,611
COMM Mortgage Trust:
Series 2012-CR1, Class A3, 3.391%, 05/17/2045		7,488,584		7,638,812
Series 2013-CR9, Class A3, 4.022%, 07/12/2045		19,677,928		21,112,721
Series 2012-CR2, Class A4, 3.147%, 08/17/2045		20,250,536		20,900,793
Series 2013-CR10, Class A3, 3.923%, 08/10/2046		23,113,096		24,817,991
Series 2014-CR15, Class ASB, 3.595%, 02/12/2047		8,599,616		8,977,314
Series 2014-CR19, Class A5, 3.796%, 08/12/2047		15,789,828		17,425,414
Series 2013-CR11, Class A3, 3.983%, 08/12/2050		10,259,146		11,113,398

The accompanying notes are an integral part of these financial statements.

Page 139

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
DBJPM Mortgage Trust:
Series 2016-C3, Class ASB, 2.756%, 08/12/2049	$	10,755,000	$	11,409,593
Series 2017-C6, Class A5, 3.328%, 06/10/2050		20,800,000		23,483,618
Series 2020-C9, Class A5, 1.926%, 08/15/2053		10,177,000		10,505,748
GS Mortgage Securities Trust:
Series 2012-GCJ9, Class A3, 2.773%, 11/13/2045		37,675,945		38,792,969
Series 2013-GC14, Class A5, 4.243%, 08/10/2046		25,500,000		27,615,210
J.P. Morgan Chase Commercial
Mortgage Securities Trust:
Series 2013-LC11, Class A5, 2.960%, 04/15/2046		18,102,913		18,966,299
Series 2013-C10, Class ASB, 2.702%, 12/17/2047		4,801,705		4,898,486
Series 2012-LC9, Class A5, 2.840%, 12/17/2047		11,490,066		11,834,000
JPMBB Commercial Mortgage Securities Trust:
Series 2013-C12, Class ASB, 3.157%, 07/17/2045		1,790,630		1,821,453
Series 2013-C12, Class A5, 3.664%, 07/17/2045		6,835,000		7,276,397
Series 2013-C15, Class A4, 4.096%, 11/17/2045		1,480,087		1,603,565
Series 2013-C14, Class A4, 4.133%, 08/17/2046(4)		29,020,000		31,280,205
Series 2013-C17, Class A3, 3.928%, 01/17/2047		3,382,847		3,590,981
Series 2013-C17, Class A4, 4.199%, 01/17/2047		17,276,000		18,938,682
Series 2014-C24, Class ASB, 3.368%, 11/18/2047		7,555,757		7,939,372
Series 2014-C25, Class ASB, 3.407%, 11/18/2047		7,020,589		7,400,880
Series 2015-C30, Class A5, 3.822%, 07/15/2048		22,658,000		25,584,283
Series 2015-C28, Class A4, 3.227%, 10/19/2048		16,688,500		18,182,099
JPMCC Commercial Mortgage Securities Trust,
Series 2017-JP7, Class A5, 3.454%, 09/16/2050		9,000,000		10,185,800
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2012-C5, Class A4, 3.176%, 08/17/2045		37,925,000		39,094,550
Series 2012-C6, Class A4, 2.858%, 11/15/2045		21,556,827		22,198,779
Series 2013-C10, Class A3, 3.967%, 07/17/2046(4)		6,148,843		6,533,245
Series 2013-C12, Class A3, 3.973%, 10/17/2046		16,211,562		17,209,632
Series 2014-C16, Class A5, 3.892%, 06/17/2047		25,000,000		27,197,977
Series 2016-C29, Class ASB, 3.140%, 05/17/2049		12,500,000		13,346,491
Series 2016-C30, Class A5, 2.860%, 09/17/2049		18,082,000		19,758,133
Series 2017-C34, Class A4, 3.536%, 11/18/2052		41,287,079		46,874,534
Wells Fargo Commercial Mortgage Trust:
Series 2015-C27, Class ASB, 3.278%, 02/18/2048		15,467,871		16,256,714
Series 2015-SG1, Class ASB, 3.556%, 09/17/2048		19,807,249		20,978,922
Series 2015-SG1, Class A4, 3.789%, 09/17/2048		19,895,789		22,107,705
Series 2015-P2, Class A3, 3.541%, 12/15/2048		46,750,000		51,795,947
Series 2017-C42, Class A4, 3.589%, 12/16/2050		7,315,000		8,401,179
Series 2019-C50, Class ASB, 3.635%, 05/17/2052		20,000,000		22,824,464
Series 2017-RC1, Class A4, 3.631%, 01/15/2060		1,950,000		2,223,368
WFRBS Commercial Mortgage Trust:
Series 2012-C6, Class A4, 3.440%, 04/15/2045		25,211,002		25,503,160
Series 2013-C13, Class ASB, 2.654%, 05/17/2045		3,497,582		3,571,582

The accompanying notes are an integral part of these financial statements.

Page 140

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
WFRBS Commercial Mortgage Trust: (cont.)
Series 2013-C18, Class A4, 3.896%, 12/17/2046	$	12,196,476	$	13,044,870
Series 2014-C21, Class A5, 3.678%, 08/16/2047		34,719,000		37,976,611
Series 2014-C24, Class A4, 3.343%, 11/18/2047		36,730,000		39,449,504
Series 2014-C23, Class ASB, 3.636%, 10/17/2057		5,317,991		5,600,494
Total Non-U.S. Government Agency Issues
(Cost $1,455,677,685)				1,517,833,544		4.6	%
Total Commercial Mortgage-Backed Securities
(Cost $2,544,410,198)				2,695,140,010		8.2	%
Asset Backed Securities
Capital One Multi-Asset Execution Trust,
Series 2019-A3, Class A3, 2.060%, 08/15/2028		3,227,000		3,450,836
Citibank Credit Card Issuance Trust,
Series 2007-A3, Class A3, 6.150%, 06/15/2039		8,691,000		13,019,227
Conseco Financial Corp.:
Series 1998-7, Class A1, 6.320%, 05/01/2029		2,790,467		2,819,123
Series 1998-3, Class A5, 6.220%, 03/01/2030		53,806		54,469
Series 1998-4, Class A5, 6.180%, 04/01/2030		478,057		487,133
Ford Credit Auto Owner Trust:
Series 2016-1, Class A, 2.310%, 08/15/2027(2)		28,860,000		28,927,319
Series 2016-2, Class A, 2.030%, 12/15/2027(2)		43,505,000		43,855,929
Series 2017-1, Class A, 2.620%, 08/15/2028(2)		2,400,000		2,460,744
Series 2019-1, Class A, 3.520%, 07/15/2030(2)		38,742,000		42,252,808
Series 2018-1, Class A, 3.190%, 07/15/2031(2)		40,550,000		44,557,629
GM Financial Consumer Automobile Receivables Trust,
Series 2020-2, Class A3, 1.490%, 12/16/2024		4,475,000		4,556,934
MMAF Equipment Finance LLC,
Series 2016-AA, Class A5, 2.210%, 12/15/2032(2)		14,100,000		14,434,077
Oakwood Mortgage Investors, Inc.,
Series 1999-B, Class A3, 6.450%, 12/15/2023		8,293		8,538
PFS Financing Corp.,
Series 2020-F, Class A, 0.930%, 08/15/2024(2)		16,750,000		16,850,549
SoFi Consumer Loan Program LLC:
Series 2017-6, Class A2, 2.820%, 11/25/2026(2)		2,087,653		2,097,321
Series 2018-3, Class A2, 3.670%, 08/25/2027(2)		6,079,696		6,119,981
Synchrony Card Funding LLC,
Series 2019-A1, Class A, 2.950%, 03/15/2025		47,621,000		49,151,096
Towd Point Mortgage Trust:
Series 2020-MH1, Class A1A, 2.184%, 02/25/2060(2)(4)		51,386,789		52,302,275
Series 2020-MH1, Class A1, 2.250%, 02/25/2060(2)(4)		32,756,519		33,316,184
Toyota Auto Loan Extended Note Trust:
Series 2019-1A, Class A, 2.560%, 11/25/2031(2)		68,654,950		73,317,108
Series 2020-1A, Class A, 1.350%, 05/25/2033(2)		104,383,000		107,481,829

The accompanying notes are an integral part of these financial statements.

Page 141

Baird Aggregate Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal					% of
	Amount		Value			Net Assets
Verizon Owner Trust,
Series 2019-B, Class A1A, 2.330%, 12/20/2023	$	37,825,000	$	38,573,693
Total Asset Backed Securities
(Cost $559,825,177)				580,094,802			1.8	%
Total Long-Term Investments
(Cost $29,745,046,811)				31,635,042,530			96.2	%
Short-Term Investment
	Shares
Money Market Mutual Funds
Fidelity Institutional Money Market Fund –
Government Portfolio, Institutional Class, 0.01%(5)		34,663,289		34,663,289
First American Government Obligations
Fund, Class U, 0.04%(5)		1,548,643,000		1,548,643,000
Total Short-Term Investments
(Cost $1,583,306,289)				1,583,306,289			4.8	%
Total Investments
(Cost $31,328,353,100)				33,218,348,819			101.0	%
Liabilities in Excess of Other Assets				(314,798,427	)		(1.0	)%
TOTAL NET ASSETS			$	32,903,550,392			100.0	%

Notes to Schedule of Investments

CMT – Constant Maturity Treasury

LIBOR – London Inter-bank Offered Rate

SOFR – Secured Overnight Financing Rate

(1)	Foreign security.
(2)	Security as defined in Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program. Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers. At December 31, 2020, the value of these securities total $5,236,253,267, which represents 15.91% of total net assets.
(3)	Variable rate security based on a reference index and spread. The rate reported is the rate in effect as of December 31, 2020.
(4)	Variable rate security. The coupon is based on an underlying pool of loans. The rate reported is the rate in effect as of December 31, 2020.
(5)	Seven-day yield.
(6)	Security that, on the last payment date, missed a partial principal or interest payment.
(7)	Step-up bond; the interest rate shown is the rate in effect as of December 31, 2020.
(8)	Security or a portion of the security purchased on a when-issued or delayed delivery basis.
(9)	Security in default.

The accompanying notes are an integral part of these financial statements.

Page 142

Baird Aggregate Bond Fund

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Long-Term Investments
U.S. Treasury Securities	$	—	$	7,523,028,249	$	—	$	7,523,028,249
Other Government Related Securities		—		45,488,667		—		45,488,667
Corporate Bonds		—		13,708,028,321		—		13,708,028,321
Municipal Bonds		—		416,533,507		—		416,533,507
Residential Mortgage-Backed Securities –
U.S. Government Agency Issues		—		6,014,309,283		—		6,014,309,283
Residential Mortgage-Backed Securities –
Non-U.S. Government Agency Issues		—		652,419,691		—		652,419,691
Commercial Mortgage-Backed Securities –
U.S. Government Agency Issues		—		1,177,306,466		—		1,177,306,466
Commercial Mortgage-Backed Securities –
Non-U.S. Government Agency Issues		—		1,517,833,544		—		1,517,833,544
Asset Backed Securities		—		580,094,802		—		580,094,802
Total Long-Term Investments		—		31,635,042,530		—		31,635,042,530
Short-Term Investments
Money Market Mutual Funds		1,583,306,289		—		—		1,583,306,289
Total Short-Term Investments		1,583,306,289		—		—		1,583,306,289
Total Investments	$	1,583,306,289	$	31,635,042,530	$	—	$	33,218,348,819

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 143

Baird Core Plus Bond Fund

December 31, 2020 (Unaudited)

The Baird Core Plus Bond Fund seeks an annual rate of total return, before Fund expenses, greater than the annual rate of total return of the Bloomberg Barclays U.S. Universal Bond Index. The Bloomberg Barclays U.S. Universal Bond Index is an unmanaged, market value weighted index of fixed income securities issued in dollars, including U.S. government, investment grade and non-investment grade credit, emerging market debt, asset-backed and mortgage-backed securities, Eurobonds, 144A securities and commercial mortgage- backed securities (CMBS) with maturities of at least one year.

Treasury yields fell across the curve in 2020, with the benchmark 10-year Treasury down 100 bps to finish the year at 0.92%, after hitting an all-time [intra-day] record low of 0.31% on March 9. The curve steepened, with the spread between 2-year and 30-year Treasuries increasing from 82 bps to 153 bps during the year, as yields in shorter maturities saw the largest decline. Starting in late February, the coronavirus (COVID-19) affected every aspect of the economy, leading to the swiftest equity bear market in history, with an over 33% peak-to-trough drop in the S&P 500 in just over a month ending March 23, and fixed income markets hitting levels of distress not seen since the Global Financial Crisis (GFC) in 2008. However, unlike 2008, the massive, coordinated monetary and fiscal policy response resulted in a much swifter recovery. U.S. unemployment dropped to 6.7% by year end after peaking at 14.7% in April as businesses reopened, and the Pfizer and Moderna vaccines offered hope for a return to normal sometime in 2021. The S&P 500 ended the year up16% at record highs and credit spreads tightened through year end, completely erasing the pandemic-related widening in many sectors. The COVID-19 pandemic and the massive government policy response to it essentially created a full market cycle for spreads in the span of a calendar year.

During 2020, the Fund generated strong absolute and relative returns and outperformed its benchmark by 122 basis points net of fees.

The primary factors contributing to the Fund’s Institutional Class Shares absolute and relative performance in 2020 include:

• Credit Positioning – Positive overall

 • Positive – Overweight to Investment Grade Credit (increased exposure post widening of the spread)

 • Positive – Active positioning within Investment Grade Credit

  • Positive – Underweight to the Other Government Sector in favor of Corporate Credit including Financials

  • Positive – Favoring credit shorter on the curve versus the benchmark

  • Positive – Security selection, including attractive new issue concessions

 • Negative – Underweight to High Yield Corporate Credit

• Mortgage-Backed Securities (MBS) & Asset-Backed Securities (ABS) Positioning – Positive overall

 • Positive – Active positioning within MBS & ABS

  • Positive – Underweight to Agency Residential Mortgage-Backed Securities (RMBS)

  • Positive – Active positioning within Agency RMBS, including opportunistically increasing specified pool exposure in March, which outperformed more generic, faster-paying pools at record low mortgage rates

  • Positive – Overweight to Agency & Non-Agency Commercial Mortgage-Backed Securities (CMBS), Non-Agency RMBS & ABS

  • Positive – Within Non-Agency CMBS investing in only the most senior classes, which outperformed subordinated classes

• Yield Curve Positioning – Positive overall

 • Positive – Positive convexity tilt of overall portfolio versus the benchmark

 • Modest positive – Modest underweight to the long end of the yield curve as the yield curve steepened

Page 144

Baird Core Plus Bond Fund

December 31, 2020 (Unaudited)

We expect the economic impact of COVID-19 to linger well into 2021, particularly as it relates to the travel and hospitality service sectors. Yet, with the massive fiscal stimulus that is already in the pipeline, and likely more coming now that the Democratic Party has full, albeit narrow, control of Washington, above-average economic growth is very likely in 2021. Stronger growth may pressure inflation modestly higher, a goal of the Fed, translating into moderately higher intermediate and long-term rates. With short-term rates still anchored close to zero by the Fed, a steeper yield curve will enable investors to capture some added performance as bonds roll down the curve. We expect the roll-down return to be an important component of total return this year, as well as security selection and sector allocation. Strategic positioning across market sectors and along the yield curve (including the ability to thoughtfully reposition should spreads widen into volatility) will complement the always-important security selection process to help navigate through the current environment.

The Fund remains duration neutral with a modest overweight to Investment Grade corporate credit, particularly Financials, and prefers the risk-reward profile of Investment Grade credit relative to High Yield credit. The Fund continues to maintain its underweight to Agency RMBS (providing a positive convexity tilt versus the benchmark at the overall portfolio) after increasing exposure at more attractive valuations in March. The Fund also continues to maintain its overweight to Agency CMBS, Non-Agency CMBS, Non-Agency RMBS and ABS at the top of the capital structure. The Fund only purchases U.S. dollar denominated securities in the cash bond market (no derivatives) and we believe the Fund is well positioned to add value relative to its benchmark.

Page 145

Baird Core Plus Bond Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

Quality Distribution⁽¹⁾⁽²⁾

	Net Assets	$29,489,863,587
	SEC 30-Day
	Yield(3)
	Institutional Class	1.50%
	Investor Class	1.26%
	Average
	Effective
	Duration	6.05 years
	Average
	Effective
	Maturity	7.72 years
	Annualized
	Expense
	Ratio(4)
	Institutional Class	0.30%
Sector Weightings(1)	Investor Class	0.55%	(5)
	Portfolio
	Turnover Rate	33%
	Number of
	Holdings	1,606

(1)	Percentages shown are based on the Fund’s total investments.
(2)	The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO).  NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest).
(3)	SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2020.
(4)	Reflects expense ratios as stated in the Fund’s current prospectus.
(5)	Includes 0.25% 12b-1 fee.

Page 146

Baird Core Plus Bond Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on 12/31/10, assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on 12/31/10, assuming reinvestment of all distributions.

Page 147

Baird Core Plus Bond Fund

December 31, 2020 (Unaudited)

Total Returns

		Average Annual
	One	Five	Ten	Since
For the Periods Ended December 31, 2020	Year	Years	Years	Inception(1)
Institutional Class Shares	8.80%	5.49%	4.83%	5.95%
Investor Class Shares	8.58%	5.23%	4.57%	5.69%
Bloomberg Barclays U.S. Universal Bond Index(2)	7.58%	4.87%	4.16%	5.24%

(1)

For the period from September 29, 2000 (inception date) through December 31, 2020.

(2)

The Bloomberg Barclays U.S. Universal Bond Index is an unmanaged, market value weighted index of fixed income securities issued in U.S. dollars, including U.S. government and investment grade debt, non-investment grade debt, asset-backed and mortgage-backed securities, Eurobonds, 144A securities and emerging market debt, with maturities of at least one year.  This Index does not reflect any deduction for fees, expenses or taxes.  A direct investment in an index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund may invest up to 20% of its net assets in non-investment grade debt securities (commonly referred to as “high yield” bonds). While these types of debt securities typically offer higher yields than investment grade securities, they also include greater risks including increased credit risk and the increased risk of default or bankruptcy. The Fund maintains securities with longer maturities in order to provide a greater potential for return. Generally, the longer a bond’s maturity, the greater the interest rate risk. The Fund may also invest in U.S. dollar denominated foreign securities which involve additional risks such as political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund may also invest in mortgage- and asset-backed securities, which include interest rate and prepayment risks more pronounced than those of other fixed income securities.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com.  Mutual fund performance changes over time and current performance may be lower or higher than that stated.

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Long-Term Investments

	Principal				% of
	Amount		Value		Net Assets
U.S. Treasury Securities
U.S. Treasury Bonds:
1.875%, 03/31/2022	$	139,025,000	$	142,066,172
1.625%, 08/31/2022		3,950,000		4,048,133
2.125%, 12/31/2022		509,965,000		530,263,999
2.000%, 11/15/2026		351,850,000		382,952,991
2.250%, 11/15/2027		698,375,000		775,469,049
3.125%, 11/15/2028		1,650,000		1,953,574
2.875%, 05/15/2043		1,141,975,000		1,443,706,207
2.500%, 02/15/2045		681,100,000		812,238,354
2.875%, 05/15/2049		179,450,000		231,686,773
Total U.S. Treasury Securities
(Cost $4,089,869,375)				4,324,385,252		14.7	%
Other Government Related Securities
Comision Federal de Electricidad,
5.750%, 02/14/2042(1)(2)		5,200,000		6,175,000
Corp Andina de Fomento,
4.375%, 06/15/2022(1)		4,265,000		4,486,823
Electricite de France SA,
4.750%, 10/13/2035(1)(2)		10,000,000		12,450,755
Export-Import Bank of Korea,
4.000%, 01/29/2021(1)		2,400,000		2,405,902
Korea Development Bank,
3.000%, 09/14/2022(1)		4,400,000		4,594,128
Petrobras Global Finance BV,
7.375%, 01/17/2027(1)		9,300,000		11,509,587
Petroleos Mexicanos:
4.500%, 01/23/2026(1)		3,516,000		3,503,659
6.490%, 01/23/2027(1)		11,743,000		12,400,608
6.840%, 01/23/2030(1)		14,606,000		15,289,269
5.950%, 01/28/2031(1)		1,005,000		1,002,487
Sinopec Group Overseas Development [2014] Ltd.,
4.375%, 04/10/2024(1)(2)		1,500,000		1,645,426
Sinopec Group Overseas Development [2015] Ltd.,
3.250%, 04/28/2025(1)(2)		7,500,000		8,042,700
Sinopec Group Overseas Development [2017] Ltd.,
3.000%, 04/12/2022(1)(2)		6,950,000		7,124,635
Syngenta Finance NV,
4.892%, 04/24/2025(1)(2)		27,231,000		29,225,814
Total Other Government Related Securities
(Cost $110,525,012)				119,856,793		0.4	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Corporate Bonds
Industrials
A.P. Meoller – Maersk A/S,
3.750%, 09/22/2024(1)(2)	$	4,475,000	$	4,845,719
Abbott Laboratories:
3.400%, 11/30/2023		4,583,000		4,969,278
4.750%, 11/30/2036		7,506,000		10,324,646
AbbVie, Inc.:
5.000%, 12/15/2021		41,397,000		42,736,553
3.250%, 10/01/2022		7,500,000		7,811,609
3.200%, 11/06/2022		3,000,000		3,140,926
3.850%, 06/15/2024		10,125,000		11,151,129
3.800%, 03/15/2025		29,200,000		32,563,210
3.600%, 05/14/2025		2,500,000		2,785,219
4.550%, 03/15/2035		14,098,000		17,824,198
4.300%, 05/14/2036		3,825,000		4,706,954
4.050%, 11/21/2039		11,250,000		13,615,027
4.250%, 11/21/2049		20,000,000		25,076,423
ADT Corp.,
3.500%, 07/15/2022		6,900,000		7,081,125
Adventist Health System:
2.952%, 03/01/2029		7,250,000		7,862,972
3.630%, 03/01/2049		8,900,000		9,883,358
Agilent Technologies, Inc.,
3.875%, 07/15/2023		5,325,000		5,730,039
Air Liquide Finance,
2.500%, 09/27/2026(1)(2)		4,833,000		5,265,413
Air Products and Chemicals, Inc.,
2.800%, 05/15/2050		5,000,000		5,495,617
Aker BP ASA,
2.875%, 01/15/2026(1)(2)		15,000,000		15,307,874
Albertsons Companies, Inc.:
3.250%, 03/15/2026(2)		5,000,000		5,075,000
3.500%, 03/15/2029(2)		1,500,000		1,517,805
Alcon Finance Corp.:
3.000%, 09/23/2029(2)		6,110,000		6,668,407
2.600%, 05/27/2030(2)		6,475,000		6,898,486
Alibaba Group Holding Ltd.,
3.125%, 11/28/2021(1)		10,000,000		10,197,559
Alimentation Couche-Tard, Inc.,
2.950%, 01/25/2030(1)(2)		6,500,000		7,103,329
Allegion PLC,
3.500%, 10/01/2029(1)		8,000,000		8,877,990
Allegion US Holding Co., Inc.,
3.200%, 10/01/2024		22,750,000		24,298,362

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Alpek SAB de CV,
4.250%, 09/18/2029(1)(2)	$	6,000,000	$	6,579,000
America Movil SAB de CV,
2.875%, 05/07/2030(1)		28,000,000		30,358,440
Amgen, Inc.:
2.200%, 02/21/2027		11,750,000		12,596,146
3.150%, 02/21/2040		5,000,000		5,504,049
4.400%, 05/01/2045		8,000,000		10,267,731
Anglo American Capital PLC:
4.125%, 09/27/2022(1)(2)		5,385,000		5,670,265
3.625%, 09/11/2024(1)(2)		4,325,000		4,705,014
5.375%, 04/01/2025(1)(2)		29,505,000		34,481,417
2.625%, 09/10/2030(1)(2)		16,025,000		16,757,157
3.950%, 09/10/2050(1)(2)		10,000,000		11,219,805
Anheuser-Busch InBev Worldwide, Inc.:
4.750%, 01/23/2029		5,000,000		6,174,478
5.450%, 01/23/2039		9,975,000		13,551,475
4.900%, 02/01/2046		41,075,000		53,406,972
ANR Pipeline Co.,
9.625%, 11/01/2021		9,150,000		9,795,770
Antofagasta PLC,
2.375%, 10/14/2030(1)(2)		6,000,000		6,015,000
AP Moller – Maersk A/S:
3.875%, 09/28/2025(1)(2)		18,140,000		20,239,266
4.500%, 06/20/2029(1)(2)		9,475,000		11,081,917
Apple, Inc.,
2.650%, 05/11/2050		15,000,000		15,920,191
Aramark Services, Inc.,
5.000%, 02/01/2028(2)		1,000,000		1,053,750
ArcelorMittal:
3.600%, 07/16/2024(1)		14,575,000		15,728,584
6.125%, 06/01/2025(1)		6,078,000		7,262,368
4.550%, 03/11/2026(1)		22,730,000		25,538,196
4.250%, 07/16/2029(1)		15,000,000		16,614,138
Arrow Electronics, Inc.,
3.250%, 09/08/2024		15,000,000		16,233,053
Ashtead Capital, Inc.,
4.000%, 05/01/2028(2)		4,000,000		4,248,560
AT&T, Inc.:
4.300%, 02/15/2030		10,980,000		13,116,021
2.550%, 12/01/2033(2)		14,329,000		14,689,204
5.250%, 03/01/2037		7,125,000		9,272,884
4.900%, 08/15/2037		10,000,000		12,540,003
3.550%, 09/15/2055(2)		45,029,000		44,876,138
3.800%, 12/01/2057(2)		15,315,000		16,003,208
3.650%, 09/15/2059(2)		31,734,000		32,043,038

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Avery Dennison Corp.,
2.650%, 04/30/2030	$	10,175,000	$	10,913,502
Avnet, Inc.,
3.750%, 12/01/2021		5,000,000		5,120,921
Ball Corp.:
5.250%, 07/01/2025		21,675,000		24,736,160
4.875%, 03/15/2026		23,125,000		26,119,688
2.875%, 08/15/2030		5,000,000		4,987,500
Bayer US Finance II LLC:
4.250%, 12/15/2025(2)		25,000,000		28,577,011
4.625%, 06/25/2038(2)		12,000,000		14,584,873
4.400%, 07/15/2044(2)		5,125,000		5,808,784
Beam Suntory, Inc.:
3.250%, 05/15/2022		10,650,000		10,970,649
3.250%, 06/15/2023		10,960,000		11,586,656
Becton Dickinson and Co.:
3.363%, 06/06/2024		10,000,000		10,870,747
3.734%, 12/15/2024		9,250,000		10,255,345
4.875%, 05/15/2044		5,455,000		6,737,607
Bemis Co., Inc.,
4.500%, 10/15/2021		1,000,000		1,021,674
Berry Global, Inc.,
4.875%, 07/15/2026(2)		28,000,000		30,077,320
Biogen, Inc.,
3.150%, 05/01/2050		20,000,000		20,738,577
Boardwalk Pipelines LP:
4.950%, 12/15/2024		17,475,000		19,503,503
5.950%, 06/01/2026		26,406,000		31,230,988
4.800%, 05/03/2029		26,341,000		30,183,869
Boeing Co.:
5.150%, 05/01/2030		14,000,000		16,943,521
3.625%, 02/01/2031		10,000,000		10,943,810
Bon Secours Mercy Health, Inc.,
3.464%, 06/01/2030		16,330,000		18,548,374
Booz Allen Hamilton, Inc.,
3.875%, 09/01/2028(2)		1,000,000		1,030,000
Boral Finance Pty Ltd.:
3.000%, 11/01/2022(1)(2)		8,650,000		8,839,809
3.750%, 05/01/2028(1)(2)		5,550,000		5,853,961
BorgWarner, Inc.:
5.000%, 10/01/2025(2)		10,000,000		11,758,284
2.650%, 07/01/2027		9,000,000		9,677,583
Boston Scientific Corp.,
1.900%, 06/01/2025		15,000,000		15,756,179

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Bristol-Myers Squibb Co.:
3.550%, 08/15/2022	$	5,730,000	$	6,036,841
3.250%, 02/20/2023		10,000,000		10,519,907
Broadcom, Inc.:
3.625%, 10/15/2024		32,800,000		36,036,426
3.125%, 01/15/2025		13,250,000		14,307,125
4.700%, 04/15/2025		18,300,000		20,971,209
3.150%, 11/15/2025		7,150,000		7,807,455
4.250%, 04/15/2026		30,400,000		34,815,192
4.750%, 04/15/2029		9,400,000		11,211,586
4.150%, 11/15/2030		10,000,000		11,577,622
Broadridge Financial Solutions, Inc.,
3.400%, 06/27/2026		18,286,000		20,578,135
Browning-Ferris Industries, Inc.,
9.250%, 05/01/2021		1,600,000		1,631,929
Bunge Limited Finance Corp.:
3.250%, 08/15/2026		13,188,000		14,657,980
3.750%, 09/25/2027		23,800,000		27,138,726
Burlington Northern Santa Fe LLC,
4.150%, 04/01/2045		3,100,000		4,048,871
Cameron LNG LLC,
3.701%, 01/15/2039(2)		15,000,000		16,914,122
Campbell Soup Co.,
3.950%, 03/15/2025		11,000,000		12,397,543
Cargill, Inc.,
2.125%, 04/23/2030(2)		7,000,000		7,364,515
Carlisle Companies, Inc.:
3.750%, 12/01/2027		4,600,000		5,204,751
2.750%, 03/01/2030		21,832,000		23,386,939
Carrier Global Corp.:
2.493%, 02/15/2027		12,845,000		13,860,252
2.700%, 02/15/2031		14,700,000		15,794,001
3.377%, 04/05/2040		10,000,000		10,970,280
3.577%, 04/05/2050		3,050,000		3,413,015
CCL Industries, Inc.,
3.050%, 06/01/2030(1)(2)		19,725,000		21,510,945
CF Industries, Inc.:
3.450%, 06/01/2023		24,874,000		25,931,145
5.375%, 03/15/2044		10,922,000		13,824,576
Charter Communications Operating LLC:
4.464%, 07/23/2022		33,748,000		35,578,608
4.908%, 07/23/2025		63,550,000		73,810,018
3.750%, 02/15/2028		5,000,000		5,606,159
5.050%, 03/30/2029		3,437,000		4,178,923
2.300%, 02/01/2032		5,000,000		5,005,806

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Charter Communications Operating LLC: (cont.)
6.384%, 10/23/2035	$	27,030,000	$	37,032,372
3.700%, 04/01/2051		6,700,000		6,957,647
Cheniere Corpus Christi Holdings LLC:
7.000%, 06/30/2024		4,269,000		4,985,229
5.875%, 03/31/2025		5,005,000		5,824,705
5.125%, 06/30/2027		11,397,000		13,482,401
Chevron Phillips Chemical Co. LLC /
Chevron Phillips Chemical Co. LP,
5.125%, 04/01/2025(2)		15,000,000		17,614,348
Cigna Corp.:
3.050%, 11/30/2022		15,000,000		15,710,473
3.000%, 07/15/2023		7,525,000		7,968,839
3.500%, 06/15/2024		7,800,000		8,522,359
4.500%, 02/25/2026		5,725,000		6,711,761
2.400%, 03/15/2030		9,850,000		10,502,279
4.800%, 08/15/2038		7,600,000		9,901,577
CK Hutchison International Ltd.:
2.875%, 04/05/2022(1)(2)		7,475,000		7,664,868
3.250%, 04/11/2024(1)(2)		7,000,000		7,482,160
Clean Harbors, Inc.,
5.125%, 07/15/2029(2)		100,000		109,250
CNH Industrial Capital LLC:
4.200%, 01/15/2024		15,000,000		16,453,918
1.875%, 01/15/2026		14,250,000		14,923,261
CNH Industrial NV:
4.500%, 08/15/2023(1)		16,168,000		17,629,381
3.850%, 11/15/2027(1)		26,114,000		29,419,638
Columbia Pipeline Group, Inc.:
4.500%, 06/01/2025		14,135,000		16,255,754
5.800%, 06/01/2045		4,733,000		6,465,808
Comcast Cable Communications Holdings, Inc.,
9.455%, 11/15/2022		2,030,000		2,375,724
Comcast Corp.:
4.250%, 01/15/2033		6,500,000		8,157,904
4.400%, 08/15/2035		13,575,000		17,372,585
3.200%, 07/15/2036		15,000,000		17,041,036
4.600%, 10/15/2038		12,350,000		16,275,155
4.650%, 07/15/2042		2,000,000		2,709,875
4.950%, 10/15/2058		7,500,000		11,386,960
CommonSpirit Health:
2.760%, 10/01/2024		7,500,000		8,040,331
2.782%, 10/01/2030		20,400,000		21,598,204
Conagra Brands, Inc.,
5.300%, 11/01/2038		6,625,000		8,856,974

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Concho Resources, Inc.,
2.400%, 02/15/2031	$	12,000,000	$	12,559,476
ConocoPhillips Canada Funding Co. I,
5.950%, 10/15/2036(1)		845,000		1,194,235
Constellation Brands, Inc.,
4.750%, 12/01/2025		1,000,000		1,184,537
Corning, Inc.,
4.375%, 11/15/2057		10,000,000		12,505,454
Costco Wholesale Corp.,
1.750%, 04/20/2032		10,000,000		10,393,249
Cox Communications, Inc.:
2.950%, 06/30/2023(2)		5,475,000		5,759,830
3.850%, 02/01/2025(2)		2,875,000		3,206,236
3.350%, 09/15/2026(2)		20,850,000		23,427,763
4.800%, 02/01/2035(2)		4,450,000		5,627,729
6.450%, 12/01/2036(2)		5,550,000		7,737,179
8.375%, 03/01/2039(2)		11,639,000		20,047,978
4.700%, 12/15/2042(2)		5,000,000		6,456,823
CSX Corp.:
6.220%, 04/30/2040		475,000		730,606
4.650%, 03/01/2068		9,000,000		12,619,432
CVS Health Corp.:
3.875%, 07/20/2025		2,302,000		2,607,037
3.250%, 08/15/2029		11,800,000		13,289,567
4.780%, 03/25/2038		35,075,000		44,439,346
5.125%, 07/20/2045		15,000,000		20,195,421
5.050%, 03/25/2048		19,600,000		26,563,458
CVS Pass-Through Trust,
7.507%, 01/10/2032(2)		3,656,597		4,495,124
Daimler Finance North America LLC:
2.550%, 08/15/2022(2)		19,750,000		20,420,997
1.750%, 03/10/2023(2)		29,550,000		30,338,201
Danone SA:
3.000%, 06/15/2022(1)(2)		3,500,000		3,633,696
2.589%, 11/02/2023(1)(2)		10,000,000		10,522,542
DCP Midstream LLC:
4.750%, 09/30/2021(2)		2,245,000		2,278,675
5.375%, 07/15/2025		3,000,000		3,296,460
5.625%, 07/15/2027		17,000,000		18,870,000
5.125%, 05/15/2029		8,000,000		8,872,960
Dell Technologies, Inc.:
5.850%, 07/15/2025(2)		5,000,000		6,004,083
4.900%, 10/01/2026(2)		8,395,000		9,913,133
Dentsply Sirona,
��3.250%, 06/01/2030		46,120,000		51,365,283

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Deutsche Telekom AG,
3.625%, 01/21/2050(1)(2)	$	5,925,000	$	6,810,238
Deutsche Telekom International Finance BV,
8.750%, 06/15/2030(1)		28,015,000		44,324,620
Diamond 1 Finance Corp. / Diamond 2 Finance Corp.:
5.450%, 06/15/2023(2)		42,180,000		46,651,950
6.020%, 06/15/2026(2)		37,004,000		45,142,854
DISH DBS Corp.,
5.000%, 03/15/2023		2,500,000		2,581,250
Dominion Gas Holdings LLC,
3.600%, 12/15/2024		6,100,000		6,744,867
DuPont de Nemours, Inc.:
4.493%, 11/15/2025		9,275,000		10,827,172
5.319%, 11/15/2038		17,350,000		23,498,959
DXC Technology Co.:
4.450%, 09/18/2022		2,000,000		2,105,036
4.250%, 04/15/2024		52,810,000		57,620,817
4.125%, 04/15/2025		30,000,000		33,163,344
4.750%, 04/15/2027		28,650,000		32,799,110
Eaton Corp.:
2.750%, 11/02/2022		2,625,000		2,739,058
4.000%, 11/02/2032		3,660,000		4,470,566
Ecolab, Inc.,
3.250%, 01/14/2023		6,325,000		6,656,473
Edward-Elmhurst Healthcare,
3.500%, 05/04/2023		4,000,000		4,203,122
Element Fleet Management Corp.,
3.850%, 06/15/2025(1)(2)		23,000,000		24,514,844
Emerson Electric Co.,
2.750%, 10/15/2050		16,200,000		17,061,493
Enable Midstream Partners LP,
4.400%, 03/15/2027		15,000,000		15,136,708
Enbridge Energy Partners LP:
7.500%, 04/15/2038		4,500,000		6,386,666
7.375%, 10/15/2045		23,298,000		35,552,363
Energy Transfer Operating LP:
4.250%, 03/15/2023		10,000,000		10,626,564
5.875%, 01/15/2024		15,000,000		16,861,281
5.500%, 06/01/2027		6,204,000		7,302,098
3.750%, 05/15/2030		6,350,000		6,849,443
5.950%, 10/01/2043		2,702,000		3,060,706
6.000%, 06/15/2048		5,000,000		5,891,662
Energy Transfer Partners LP:
4.200%, 04/15/2027		8,650,000		9,533,700
6.500%, 02/01/2042		18,727,000		22,846,673
5.150%, 03/15/2045		5,000,000		5,418,464

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Eni SpA,
4.250%, 05/09/2029(1)(2)	$	18,250,000	$	21,619,255
EnLink Midstream Partners LP,
4.400%, 04/01/2024		23,605,000		23,292,706
Enterprise Products Operating LLC:
3.350%, 03/15/2023		10,000,000		10,569,836
3.950%, 01/31/2060		14,475,000		16,023,257
EQT Corp.:
7.875%, 02/01/2025		10,000,000		11,387,500
5.000%, 01/15/2029		1,000,000		1,054,320
EQT Midstream Partners LP:
4.750%, 07/15/2023		22,000,000		23,132,560
4.125%, 12/01/2026		14,750,000		14,860,625
Equinix, Inc.:
2.625%, 11/18/2024		8,000,000		8,552,153
2.150%, 07/15/2030		15,000,000		15,257,254
ERAC USA Finance LLC,
2.600%, 12/01/2021(2)		10,400,000		10,579,840
Exxon Mobil Corp.:
1.571%, 04/15/2023		3,400,000		3,496,556
2.992%, 03/19/2025		35,000,000		38,307,655
3.294%, 03/19/2027		5,000,000		5,698,175
3.482%, 03/19/2030		11,125,000		12,938,206
2.610%, 10/15/2030		14,400,000		15,728,867
4.327%, 03/19/2050		3,950,000		5,171,561
FedEx Corp.:
3.800%, 05/15/2025		10,000,000		11,288,532
3.900%, 02/01/2035		7,000,000		8,358,584
4.950%, 10/17/2048		13,500,000		18,431,158
Ferguson Finance PLC,
4.500%, 10/24/2028(1)(2)		37,052,000		44,405,790
Fidelity National Information Services, Inc.:
3.500%, 04/15/2023		3,268,000		3,468,164
3.875%, 06/05/2024		6,367,000		7,007,191
3.000%, 08/15/2026		9,300,000		10,348,222
4.500%, 08/15/2046		6,700,000		8,565,397
Fiserv, Inc.:
3.500%, 10/01/2022		11,625,000		12,162,664
3.850%, 06/01/2025		11,720,000		13,210,864
3.200%, 07/01/2026		6,400,000		7,169,152
2.250%, 06/01/2027		10,650,000		11,350,201
3.500%, 07/01/2029		6,010,000		6,862,557
4.400%, 07/01/2049		20,000,000		26,789,599
Flex Ltd.,
3.750%, 02/01/2026(1)		19,300,000		21,588,187

The accompanying notes are an integral part of these financial statements.

Page 157

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Florida Gas Transmission Co. LLC,
3.875%, 07/15/2022(2)	$	3,000,000	$	3,119,148
Flowserve Corp.,
3.500%, 10/01/2030		7,075,000		7,552,128
FMC Corp.,
3.200%, 10/01/2026		8,100,000		9,021,108
FMG Resources Pty Ltd.,
5.125%, 03/15/2023(1)(2)		24,000,000		25,350,000
Fomento Economico Mexicano SAB de CV:
2.875%, 05/10/2023(1)		11,700,000		12,226,500
4.375%, 05/10/2043(1)		2,000,000		2,521,920
3.500%, 01/16/2050(1)		11,625,000		12,936,238
Ford Motor Credit Co. LLC:
3.200%, 01/15/2021		11,250,000		11,255,625
5.750%, 02/01/2021		13,000,000		13,032,500
3.336%, 03/18/2021		5,500,000		5,513,750
5.875%, 08/02/2021		8,975,000		9,185,912
2.979%, 08/03/2022		20,000,000		20,334,000
4.250%, 09/20/2022		4,459,000		4,602,401
4.140%, 02/15/2023		10,000,000		10,300,000
5.584%, 03/18/2024		29,367,000		31,676,715
3.664%, 09/08/2024		12,000,000		12,315,000
4.063%, 11/01/2024		7,000,000		7,353,990
3.375%, 11/13/2025		25,000,000		25,684,000
Fortune Brands Home & Security, Inc.,
3.250%, 09/15/2029		14,000,000		15,513,674
Fox Corp.,
3.050%, 04/07/2025		5,000,000		5,456,037
Freeport-McMoRan, Inc.:
3.875%, 03/15/2023		38,916,000		40,601,063
5.000%, 09/01/2027		12,000,000		12,720,000
4.125%, 03/01/2028		10,000,000		10,487,500
5.250%, 09/01/2029		14,415,000		16,036,687
4.625%, 08/01/2030		3,000,000		3,292,500
Fresenius Medical Care US Finance II, Inc.,
4.750%, 10/15/2024(2)		8,075,000		9,041,047
Fresenius Medical Care US Finance III, Inc.:
3.750%, 06/15/2029(2)		34,130,000		38,268,070
2.375%, 02/16/2031(2)		32,300,000		32,828,186
Fresenius US Finance II, Inc.,
4.500%, 01/15/2023(2)		33,385,000		35,457,514
General Dynamics Corp.,
3.500%, 04/01/2027		11,000,000		12,654,355

The accompanying notes are an integral part of these financial statements.

Page 158

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
General Electric Co.:
3.450%, 05/01/2027	$	3,925,000	$	4,439,354
3.625%, 05/01/2030		5,000,000		5,714,435
6.150%, 08/07/2037		2,000,000		2,757,112
General Mills, Inc.:
3.700%, 10/17/2023		20,000,000		21,781,677
4.000%, 04/17/2025		3,175,000		3,589,317
General Motors Financial Co., Inc.:
4.200%, 03/01/2021		21,283,000		21,335,335
3.200%, 07/06/2021		25,600,000		25,875,352
4.375%, 09/25/2021		4,875,000		5,006,637
3.450%, 01/14/2022		5,200,000		5,339,122
3.150%, 06/30/2022		13,050,000		13,511,026
4.150%, 06/19/2023		3,375,000		3,630,897
1.700%, 08/18/2023		15,500,000		15,899,178
5.100%, 01/17/2024		18,750,000		20,982,151
2.900%, 02/26/2025		17,725,000		18,928,908
Genpact Luxembourg Sarl:
3.700%, 04/01/2022(1)		43,005,000		43,848,058
3.375%, 12/01/2024(1)		46,370,000		50,487,607
Georgia-Pacific LLC,
3.163%, 11/15/2021(2)		20,000,000		20,374,814
Glencore Finance (Canada) Ltd.:
4.950%, 11/15/2021(1)(2)		2,000,000		2,079,851
4.250%, 10/25/2022(1)(2)		7,000,000		7,456,200
6.000%, 11/15/2041(1)(2)		9,400,000		11,911,680
5.550%, 10/25/2042(1)(2)		3,543,000		4,345,064
Glencore Funding LLC:
4.125%, 05/30/2023(2)		16,940,000		18,319,763
4.625%, 04/29/2024(2)		29,230,000		32,643,527
4.000%, 03/27/2027(2)		17,000,000		19,230,101
4.875%, 03/12/2029(2)		18,000,000		21,467,863
2.500%, 09/01/2030(2)		19,800,000		20,192,965
Global Payments, Inc.:
3.800%, 04/01/2021		9,199,000		9,249,630
4.000%, 06/01/2023		10,775,000		11,652,920
4.800%, 04/01/2026		10,035,000		11,908,746
2.900%, 05/15/2030		5,000,000		5,444,365
Graphic Packaging International LLC:
3.500%, 03/15/2028(2)		5,000,000		5,181,250
3.500%, 03/01/2029(2)		5,000,000		5,112,500
Gray Oak Pipeline LLC,
2.600%, 10/15/2025(2)		15,000,000		15,460,007

The accompanying notes are an integral part of these financial statements.

Page 159

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Grupo Bimbo SAB de CV:
4.500%, 01/25/2022(1)(2)	$	3,915,000	$	4,068,429
3.875%, 06/27/2024(1)(2)		31,501,000		34,469,024
4.875%, 06/27/2044(1)(2)		9,575,000		12,000,766
4.700%, 11/10/2047(1)(2)		22,671,000		28,154,661
4.000%, 09/06/2049(1)(2)		13,000,000		14,707,550
Gulf South Pipeline Co. LP,
4.000%, 06/15/2022		3,000,000		3,088,677
Gulfstream Natural Gas System LLC,
4.600%, 09/15/2025(2)		10,000,000		11,382,941
HB Fuller Co.,
4.000%, 02/15/2027		6,725,000		7,010,812
HCA, Inc.:
5.000%, 03/15/2024		10,366,000		11,661,474
5.375%, 02/01/2025		25,300,000		28,450,609
5.250%, 04/15/2025		19,200,000		22,419,489
5.375%, 09/01/2026		1,000,000		1,149,400
4.500%, 02/15/2027		16,500,000		19,192,831
5.875%, 02/01/2029		500,000		601,740
4.125%, 06/15/2029		15,000,000		17,401,224
3.500%, 09/01/2030		5,000,000		5,312,881
Hewlett Packard Enterprise Co.,
4.450%, 10/02/2023		12,575,000		13,833,560
Hexcel Corp.:
4.700%, 08/15/2025		8,303,000		9,321,243
3.950%, 02/15/2027		19,000,000		20,536,712
Hologic, Inc.,
3.250%, 02/15/2029(2)		10,000,000		10,175,000
HP, Inc.:
2.200%, 06/17/2025		10,000,000		10,587,390
3.000%, 06/17/2027		25,000,000		27,585,184
Huntington Ingalls Industries, Inc.,
3.844%, 05/01/2025(2)		10,000,000		11,111,780
Husky Energy, Inc.:
4.000%, 04/15/2024(1)		7,380,000		7,909,148
4.400%, 04/15/2029(1)		15,000,000		16,689,570
Hutchison Whampoa International Ltd.:
3.250%, 11/08/2022(1)(2)		4,625,000		4,826,607
3.625%, 10/31/2024(1)(2)		15,000,000		16,423,350
Hyundai Capital America:
3.450%, 03/12/2021(2)		20,950,000		21,053,702
3.000%, 03/18/2021(2)		10,000,000		10,044,785
3.750%, 07/08/2021(2)		10,150,000		10,298,281
3.100%, 04/05/2022(2)		2,000,000		2,056,343
2.850%, 11/01/2022(2)		5,225,000		5,414,659

The accompanying notes are an integral part of these financial statements.

Page 160

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Hyundai Capital America: (cont.)
2.375%, 02/10/2023(2)	$	20,000,000	$	20,612,448
1.250%, 09/18/2023(2)		14,125,000		14,292,414
3.400%, 06/20/2024(2)		16,850,000		17,965,469
IHS Markit Ltd.,
3.625%, 05/01/2024(1)		10,000,000		10,907,800
Infor, Inc.,
1.750%, 07/15/2025(2)		8,375,000		8,699,444
Ingersoll-Rand Global Holding Co. Ltd.,
5.750%, 06/15/2043		4,126,000		5,927,502
Ingersoll-Rand Luxembourg Finance SA,
4.650%, 11/01/2044(1)		1,300,000		1,662,166
Ingredion, Inc.,
2.900%, 06/01/2030		28,000,000		30,838,187
International Business Machines Corp.,
4.150%, 05/15/2039		13,000,000		16,459,262
International Flavors & Fragrances, Inc.,
5.000%, 09/26/2048		10,000,000		13,461,399
Iron Mountain, Inc.,
4.500%, 02/15/2031(2)		10,000,000		10,475,000
JM Smucker Co.:
2.375%, 03/15/2030		5,000,000		5,292,545
3.550%, 03/15/2050		3,350,000		3,780,523
Johnson Controls International PLC,
3.900%, 02/14/2026(1)		3,645,000		4,129,128
Kansas City Southern:
4.700%, 05/01/2048		12,000,000		15,107,156
3.500%, 05/01/2050		13,000,000		14,453,454
Kerry Group Financial Services Unlimited Co.,
3.200%, 04/09/2023(1)(2)		18,500,000		19,413,223
Keurig Dr Pepper, Inc.,
4.417%, 05/25/2025		7,000,000		8,070,564
Keysight Technologies, Inc.:
4.550%, 10/30/2024		7,283,000		8,235,007
4.600%, 04/06/2027		50,189,000		59,819,999
Kimberly-Clark de Mexico SAB de CV,
2.431%, 07/01/2031(1)(2)		10,000,000		10,330,200
Kinder Morgan Energy Partners LP:
7.300%, 08/15/2033		1,675,000		2,347,786
6.500%, 02/01/2037		400,000		519,128
6.950%, 01/15/2038		14,755,000		20,189,409
7.500%, 11/15/2040		27,248,000		39,113,074
Kinder Morgan, Inc.:
5.000%, 02/15/2021(2)		10,008,000		10,037,536
8.050%, 10/15/2030		15,384,000		21,391,244

The accompanying notes are an integral part of these financial statements.

Page 161

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Kinder Morgan, Inc.: (cont.)
7.800%, 08/01/2031	$	16,174,000	$	23,097,737
7.750%, 01/15/2032		7,466,000		10,793,525
Kinross Gold Corp.,
6.875%, 09/01/2041(1)		5,500,000		7,563,988
Kraft Heinz Foods Co.:
4.000%, 06/15/2023		34,774,000		36,977,961
6.750%, 03/15/2032		10,000,000		13,278,345
5.000%, 07/15/2035		7,375,000		8,940,287
5.000%, 06/04/2042		5,000,000		5,866,368
Lafarge SA,
7.125%, 07/15/2036(1)		1,500,000		2,186,606
LafargeHolcim Finance US LLC,
3.500%, 09/22/2026(2)		12,565,000		13,811,990
Lear Corp.:
3.800%, 09/15/2027		7,725,000		8,666,101
3.500%, 05/30/2030		15,000,000		16,413,417
Leidos, Inc.:
4.375%, 05/15/2030(2)		24,000,000		28,738,800
2.300%, 02/15/2031(2)		7,500,000		7,636,492
Lennar Corp.,
4.125%, 01/15/2022		1,385,000		1,417,894
Lennox International, Inc.,
3.000%, 11/15/2023		10,000,000		10,540,000
Magellan Midstream Partners LP:
5.000%, 03/01/2026		10,000,000		11,917,601
4.200%, 03/15/2045		8,770,000		9,491,622
4.250%, 09/15/2046		1,230,000		1,416,751
3.950%, 03/01/2050		19,000,000		21,412,831
Magna International, Inc.,
2.450%, 06/15/2030(1)		10,000,000		10,756,862
Marathon Oil Corp.,
2.800%, 11/01/2022		3,452,000		3,548,207
Marathon Petroleum Corp.:
3.625%, 09/15/2024		2,500,000		2,728,223
4.700%, 05/01/2025		15,000,000		17,183,328
5.125%, 12/15/2026		3,000,000		3,575,933
4.750%, 09/15/2044		3,985,000		4,577,632
Martin Marietta Materials, Inc.:
2.500%, 03/15/2030		5,000,000		5,327,325
6.250%, 05/01/2037		450,000		576,360
Masco Corp.:
4.450%, 04/01/2025		5,000,000		5,740,278
6.500%, 08/15/2032		14,934,000		19,939,471

The accompanying notes are an integral part of these financial statements.

Page 162

Baird Core Plus Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
MasTec, Inc.,
4.500%, 08/15/2028(2)	$	5,000,000	$	5,250,000
McDonald’s Corp.:
3.700%, 01/30/2026		7,250,000		8,258,386
3.500%, 07/01/2027		6,000,000		6,882,802
Microchip Technology, Inc.:
3.922%, 06/01/2021		12,845,000		13,027,389
4.333%, 06/01/2023		32,298,000		34,963,013
2.670%, 09/01/2023(2)		25,000,000		26,146,603
4.250%, 09/01/2025(2)		4,000,000		4,231,773
Micron Technology, Inc.,
4.640%, 02/06/2024		3,000,000		3,340,371
Microsoft Corp.,
4.200%, 11/03/2035		5,650,000		7,418,237
Midwest Connector Capital Co. LLC:
3.900%, 04/01/2024(2)		13,695,000		14,037,375
4.625%, 04/01/2029(2)		12,000,000		12,579,066
Minera Mexico SA de CV,
4.500%, 01/26/2050(1)(2)		5,000,000		5,782,550
Molex Electronic Technologies LLC,
3.900%, 04/15/2025(2)		8,250,000		8,535,972
Molson Coors Beverage Co.,
3.000%, 07/15/2026		33,888,000		36,943,747
Mosaic Co.,
5.450%, 11/15/2033		16,101,000		20,017,690
MPLX LP:
3.500%, 12/01/2022		8,600,000		9,032,222
4.000%, 02/15/2025		13,125,000		14,667,836
4.875%, 06/01/2025		19,150,000		22,119,579
1.750%, 03/01/2026		20,000,000		20,698,107
4.250%, 12/01/2027		6,519,000		7,654,419
5.500%, 02/15/2049		8,825,000		11,620,874
4.900%, 04/15/2058		5,000,000		5,942,716
MSCI, Inc.,
4.000%, 11/15/2029(2)		7,562,000		8,053,530
Mylan NV:
3.150%, 06/15/2021(1)		8,100,000		8,178,300
3.950%, 06/15/2026(1)		5,000,000		5,720,653
Mylan, Inc.:
3.125%, 01/15/2023(2)		16,800,000		17,634,162
4.200%, 11/29/2023		4,525,000		4,947,992
4.550%, 04/15/2028		5,000,000		5,944,010
NCL Corp. Ltd.,
3.625%, 12/15/2024(1)(2)		20,000,000		19,000,000

The accompanying notes are an integral part of these financial statements.

Page 163

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Newell Brands, Inc.:
3.850%, 04/01/2023	$	40,709,000	$	42,699,263
4.875%, 06/01/2025		1,500,000		1,650,450
Newfield Exploration Co.,
5.750%, 01/30/2022		7,700,000		7,997,618
NGPL PipeCo LLC,
4.875%, 08/15/2027 (Callable 02/15/2027)(2)		20,000,000		22,659,136
NIKE, Inc.,
2.750%, 03/27/2027		7,000,000		7,745,679
Noble Energy, Inc.:
3.900%, 11/15/2024		3,000,000		3,347,777
5.050%, 11/15/2044		3,000,000		4,221,750
Norfolk Southern Corp.,
3.050%, 05/15/2050		20,000,000		21,789,780
NuStar Logistics LP,
6.750%, 02/01/2021		3,000,000		3,007,500
Nutrien Ltd.:
4.000%, 12/15/2026(1)		10,000,000		11,623,274
4.125%, 03/15/2035(1)		6,550,000		7,800,158
Nutrition & Biosciences, Inc.,
3.468%, 12/01/2050(2)		8,000,000		8,690,202
nVent Finance Sarl:
3.950%, 04/15/2023(1)		11,055,000		11,641,155
4.550%, 04/15/2028(1)		32,435,000		35,229,382
NXP Semiconductors NV,
3.875%, 09/01/2022(1)(2)		9,300,000		9,801,699
Occidental Petroleum Corp.:
2.900%, 08/15/2024		10,000,000		9,625,000
8.500%, 07/15/2027		15,000,000		17,310,750
7.150%, 05/15/2028		7,000,000		7,096,250
7.875%, 09/15/2031		12,790,000		14,260,850
6.450%, 09/15/2036		7,125,000		7,459,875
ONEOK Partners LP,
3.375%, 10/01/2022		4,007,000		4,170,425
ONEOK, Inc.:
4.250%, 02/01/2022		6,450,000		6,639,113
7.500%, 09/01/2023		22,959,000		26,574,967
2.750%, 09/01/2024		8,300,000		8,757,647
Oracle Corp.:
2.800%, 04/01/2027		46,000,000		50,732,389
3.900%, 05/15/2035		7,425,000		9,116,575
Orange SA,
9.000%, 03/01/2031(1)		33,426,000		54,982,813
Oshkosh Corp.,
3.100%, 03/01/2030		5,000,000		5,453,223

The accompanying notes are an integral part of these financial statements.

Page 164

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Owens Corning:
4.200%, 12/01/2024	$	10,000,000	$	11,116,911
3.400%, 08/15/2026		5,000,000		5,521,294
Packaging Corp. of America,
4.500%, 11/01/2023		4,700,000		5,183,084
Pactiv LLC,
7.950%, 12/15/2025		1,338,000		1,532,010
Penske Truck Leasing Co.:
4.000%, 07/15/2025(2)		20,000,000		22,680,300
1.200%, 11/15/2025(2)		22,800,000		22,995,038
PepsiCo, Inc.,
2.750%, 03/19/2030		9,200,000		10,301,103
PerkinElmer, Inc.,
3.300%, 09/15/2029		25,000,000		28,187,784
Pernod Ricard SA,
4.250%, 07/15/2022(1)(2)		26,700,000		28,189,692
Perrigo Finance Unlimited Co.:
3.900%, 12/15/2024(1)		42,000,000		46,120,708
3.150%, 06/15/2030(1)		18,250,000		19,504,805
Phillips 66:
3.850%, 04/09/2025		8,000,000		8,974,464
2.150%, 12/15/2030		6,000,000		6,091,026
4.650%, 11/15/2034		13,000,000		15,749,964
5.875%, 05/01/2042		5,000,000		6,951,788
4.875%, 11/15/2044		15,000,000		18,918,852
Phillips 66 Partners LP:
3.605%, 02/15/2025		2,000,000		2,161,499
3.150%, 12/15/2029		12,550,000		13,056,276
4.680%, 02/15/2045		2,000,000		2,169,082
Plains All American Pipeline LP / PAA Finance Corp.,
3.550%, 12/15/2029		20,000,000		20,930,078
POSCO:
2.375%, 01/17/2023(1)(2)		5,550,000		5,719,552
4.000%, 08/01/2023(1)(2)		13,000,000		14,017,849
Quanta Services, Inc.,
2.900%, 10/01/2030		10,000,000		10,721,565
Qwest Capital Funding, Inc.,
7.625%, 08/03/2021		200,000		205,164
Raytheon Technologies Corp.:
7.500%, 09/15/2029		8,188,000		11,885,005
2.250%, 07/01/2030		12,000,000		12,746,334
4.800%, 12/15/2043		7,925,000		10,103,505
3.125%, 07/01/2050		6,000,000		6,616,151

The accompanying notes are an integral part of these financial statements.

Page 165

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Regency Energy Partners LP /
Regency Energy Finance Corp.,
4.500%, 11/01/2023	$	11,850,000	$	12,830,255
Reliance Industries Ltd.,
5.400%, 02/14/2022(1)(2)		3,500,000		3,664,523
Reliance Steel & Aluminum Co.,
1.300%, 08/15/2025		6,100,000		6,195,584
Republic Services, Inc.:
4.750%, 05/15/2023		7,341,000		8,014,110
2.900%, 07/01/2026		5,000,000		5,524,592
Rogers Communications, Inc.,
4.350%, 05/01/2049(1)		10,000,000		12,947,977
Sabine Pass Liquefaction LLC:
5.625%, 03/01/2025		14,500,000		16,911,670
5.875%, 06/30/2026		55,015,000		66,518,765
5.000%, 03/15/2027		20,300,000		23,935,026
Samarco Mineracao SA:
5.750%, 10/24/2023(1)(2)(9)		5,475,000		3,928,313
5.375%, 09/26/2024(1)(2)(9)		5,125,000		3,664,375
Schlumberger Holdings Corp.,
3.900%, 05/17/2028(2)		11,096,000		12,539,830
Schneider Electric SE,
2.950%, 09/27/2022(1)(2)		5,000,000		5,216,564
Seagate HDD Cayman,
4.875%, 03/01/2024(1)		24,400,000		26,503,280
Shell International Finance BV:
2.375%, 04/06/2025(1)		9,000,000		9,652,502
2.750%, 04/06/2030(1)		8,725,000		9,652,763
Sherwin-Williams Co.,
4.500%, 06/01/2047		10,550,000		14,111,945
Shire Acquisitions Investments Ireland DAC,
2.875%, 09/23/2023(1)		54,946,000		58,266,329
Silgan Holdings, Inc.:
4.750%, 03/15/2025		1,000,000		1,016,250
4.125%, 02/01/2028		4,000,000		4,155,000
SK Telecom Co. Ltd.,
6.625%, 07/20/2027(1)(2)		960,000		1,258,275
Smith & Nephew PLC,
2.032%, 10/14/2030(1)		10,000,000		10,187,182
Smithfield Foods, Inc.:
2.650%, 10/03/2021(2)		10,200,000		10,290,157
3.350%, 02/01/2022(2)		31,389,000		31,820,466
5.200%, 04/01/2029(2)		16,566,000		19,723,106
3.000%, 10/15/2030(2)		10,000,000		10,580,768

The accompanying notes are an integral part of these financial statements.

Page 166

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Sociedad Quimica y Minera de Chile SA,
3.625%, 04/03/2023(1)(2)	$	8,093,000	$	8,489,638
Solvay Finance America LLC,
4.450%, 12/03/2025(2)		40,018,000		45,754,076
Sonoco Products Co.,
4.375%, 11/01/2021		1,000,000		1,020,437
Southern Copper Corp.,
7.500%, 07/27/2035		10,000,000		15,251,904
Spectra Energy Partners LP:
3.500%, 03/15/2025		15,150,000		16,705,569
4.500%, 03/15/2045		5,000,000		5,842,834
Standard Industries, Inc.:
4.750%, 01/15/2028(2)		24,408,000		25,689,420
4.375%, 07/15/2030(2)		5,000,000		5,348,650
3.375%, 01/15/2031(2)		5,000,000		5,025,000
Stanley Black & Decker, Inc.,
4.850%, 11/15/2048		4,175,000		5,884,465
Steel Dynamics, Inc.,
2.800%, 12/15/2024		7,000,000		7,525,630
Stericycle, Inc.,
3.875%, 01/15/2029(2)		1,000,000		1,027,500
Sunoco Logistics Partners Operations LP:
3.450%, 01/15/2023		2,000,000		2,086,423
6.100%, 02/15/2042		1,000,000		1,157,099
Suntory Holdings Ltd.,
2.550%, 06/28/2022(1)(2)		2,000,000		2,055,069
Sysco Corp.:
5.650%, 04/01/2025		7,000,000		8,323,011
5.950%, 04/01/2030		18,220,000		23,941,902
Takeda Pharmaceutical Co. Ltd.,
3.175%, 07/09/2050(1)		21,825,000		23,271,422
Targa Resources Partners LP:
6.500%, 07/15/2027		1,000,000		1,085,000
5.000%, 01/15/2028		28,000,000		29,555,680
4.875%, 02/01/2031(2)		500,000		544,795
TC PipeLines LP:
4.375%, 03/13/2025		26,205,000		29,555,379
3.900%, 05/25/2027		25,885,000		29,113,762
Teck Resources Ltd.,
3.900%, 07/15/2030(1)		10,000,000		11,136,925
Telecom Italia Capital SA:
5.303%, 05/30/2024(1)(2)		21,500,000		23,381,250
7.200%, 07/18/2036(1)		3,175,000		4,283,615

The accompanying notes are an integral part of these financial statements.

Page 167

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Telefonica Emisiones SA:
5.462%, 02/16/2021(1)	$	2,402,000	$	2,415,453
4.570%, 04/27/2023(1)		1,000,000		1,093,279
4.103%, 03/08/2027(1)		8,125,000		9,405,809
7.045%, 06/20/2036(1)		4,925,000		7,346,110
5.213%, 03/08/2047(1)		5,000,000		6,409,053
4.895%, 03/06/2048(1)		9,475,000		11,887,249
5.520%, 03/01/2049(1)		12,000,000		16,192,678
TELUS Corp.,
2.800%, 02/16/2027(1)		13,100,000		14,392,758
Tenet Healthcare Corp.,
6.750%, 06/15/2023		1,000,000		1,072,500
Teva Pharmaceutical Finance Netherlands III BV:
2.800%, 07/21/2023(1)		24,275,000		24,034,678
3.150%, 10/01/2026(1)		36,000,000		34,605,360
Textron, Inc.,
3.000%, 06/01/2030		15,000,000		16,169,239
Thermo Fisher Scientific, Inc.,
4.133%, 03/25/2025		15,000,000		17,055,562
Timken Co.:
3.875%, 09/01/2024		18,500,000		19,880,742
4.500%, 12/15/2028		6,025,000		6,747,453
T-Mobile USA, Inc.,
4.750%, 02/01/2028		17,250,000		18,541,853
Toll Road Investors Partnership II LP:
0.000%, 02/15/2022(2)		21,200,000		20,424,148
0.000%, 02/15/2025(2)		10,000,000		8,541,720
TransCanada PipeLines Ltd.,
4.750%, 05/15/2038(1)		10,000,000		12,510,150
Transcontinental Gas Pipe Line Co. LLC,
4.450%, 08/01/2042		2,600,000		3,025,767
Transocean, Inc.,
11.500%, 01/30/2027(1)(2)		3,650,000		2,609,750
TreeHouse Foods, Inc.,
4.000%, 09/01/2028		1,500,000		1,551,563
TTX Co.:
4.650%, 06/15/2044(2)		7,710,000		9,856,374
3.900%, 02/01/2045(2)		25,325,000		29,909,378
Tyco Electronics Group SA,
7.125%, 10/01/2037(1)		500,000		755,923
Tyson Foods, Inc.,
5.100%, 09/23/2048		4,650,000		6,694,270
United Rentals North America, Inc.:
5.875%, 09/15/2026		13,000,000		13,763,100
3.875%, 11/15/2027		5,000,000		5,237,500

The accompanying notes are an integral part of these financial statements.

Page 168

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
United Rentals North America, Inc.: (cont.)
4.875%, 01/15/2028	$	5,000,000	$	5,325,000
5.250%, 01/15/2030		5,000,000		5,550,000
4.000%, 07/15/2030		10,000,000		10,525,000
3.875%, 02/15/2031		3,000,000		3,147,150
Universal Health Services, Inc.,
2.650%, 10/15/2030(2)		7,325,000		7,604,181
Upjohn, Inc.:
3.850%, 06/22/2040(2)		10,000,000		11,286,717
4.000%, 06/22/2050(2)		17,000,000		19,476,695
UPMC,
3.600%, 04/03/2025		47,575,000		52,836,407
Utah Acquisition Sub, Inc.,
5.250%, 06/15/2046(1)		4,000,000		5,240,321
Valaris PLC,
5.200%, 03/15/2025(1)(9)		6,000,000		255,000
Vale Canada Ltd.,
7.200%, 09/15/2032(1)		1,600,000		2,192,000
Vale Overseas Ltd.:
6.250%, 08/10/2026(1)		22,000,000		27,280,000
3.750%, 07/08/2030(1)		12,545,000		13,956,438
8.250%, 01/17/2034(1)		425,000		653,013
6.875%, 11/21/2036(1)		12,475,000		18,283,734
6.875%, 11/10/2039(1)		15,850,000		23,596,846
Valero Energy Corp.:
1.200%, 03/15/2024		13,450,000		13,573,795
3.400%, 09/15/2026		17,500,000		19,187,849
6.625%, 06/15/2037		5,000,000		6,650,935
Valero Energy Partners LP,
4.500%, 03/15/2028		20,000,000		22,975,347
Verisk Analytics, Inc.:
5.800%, 05/01/2021		2,585,000		2,629,193
4.000%, 06/15/2025		10,000,000		11,328,019
Verizon Communications, Inc.:
3.000%, 03/22/2027		5,000,000		5,547,222
4.500%, 08/10/2033		15,710,000		19,823,036
4.400%, 11/01/2034		790,000		985,865
4.272%, 01/15/2036		19,793,000		24,548,871
5.250%, 03/16/2037		18,225,000		24,698,338
4.812%, 03/15/2039		38,575,000		50,325,661
4.862%, 08/21/2046		2,500,000		3,378,592
VF Corp.,
2.800%, 04/23/2027		7,000,000		7,656,700

The accompanying notes are an integral part of these financial statements.

Page 169

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Vodafone Group PLC:
3.750%, 01/16/2024(1)	$	2,184,000	$	2,386,582
7.875%, 02/15/2030(1)		16,293,000		24,171,452
6.150%, 02/27/2037(1)		11,825,000		17,048,388
4.375%, 02/19/2043(1)		5,054,000		6,276,839
Volkswagen Group of America Finance LLC:
4.000%, 11/12/2021(2)		9,000,000		9,274,747
4.250%, 11/13/2023(2)		18,000,000		19,796,775
2.850%, 09/26/2024(2)		5,000,000		5,339,965
3.350%, 05/13/2025(2)		15,000,000		16,490,326
1.250%, 11/24/2025(2)		11,075,000		11,184,789
Vulcan Materials Co.:
4.500%, 04/01/2025		3,000,000		3,431,608
3.500%, 06/01/2030		11,050,000		12,692,158
4.700%, 03/01/2048		500,000		645,979
Wabtec Corp.:
4.375%, 08/15/2023		9,750,000		10,289,634
4.400%, 03/15/2024		13,109,000		14,346,161
3.450%, 11/15/2026		33,125,000		36,363,655
4.950%, 09/15/2028		10,205,000		12,107,448
Walgreens Boots Alliance, Inc.:
3.300%, 11/18/2021		8,060,000		8,227,653
3.450%, 06/01/2026		17,000,000		18,802,028
Walmart, Inc.,
4.050%, 06/29/2048		11,975,000		16,250,618
Walt Disney Co.:
3.700%, 09/15/2024		4,025,000		4,467,767
7.430%, 10/01/2026		3,300,000		4,456,511
5.400%, 10/01/2043		5,000,000		7,313,761
4.750%, 09/15/2044		1,950,000		2,676,161
Waste Management, Inc.,
3.900%, 03/01/2035		5,000,000		6,122,295
Western Digital Corp.,
4.750%, 02/15/2026		57,075,000		63,067,875
Western Gas Partners LP,
4.000%, 07/01/2022		17,845,000		18,344,303
Western Midstream Operating LP,
6.000%, 02/01/2050		10,000,000		11,000,000
Westinghouse Air Brake Technologies Corp.,
3.200%, 06/15/2025		10,000,000		10,788,593
WestRock MWV LLC,
8.200%, 01/15/2030		5,012,000		7,142,517
Williams Companies, Inc.:
7.875%, 09/01/2021		5,065,000		5,310,139
3.700%, 01/15/2023		44,375,000		47,007,545

The accompanying notes are an integral part of these financial statements.

Page 170

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Williams Companies, Inc.: (cont.)
4.550%, 06/24/2024	$	7,629,000	$	8,539,562
7.500%, 01/15/2031		120,000		163,128
7.750%, 06/15/2031		3,500,000		4,715,203
8.750%, 03/15/2032		9,275,000		13,567,852
6.300%, 04/15/2040		1,590,000		2,114,603
5.750%, 06/24/2044		2,500,000		3,240,118
Woodside Finance Ltd.,
3.650%, 03/05/2025(1)(2)		15,575,000		16,791,408
WRKCo, Inc.,
3.000%, 09/15/2024		6,000,000		6,460,513
Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp.,
4.250%, 05/30/2023(2)		4,000,000		4,058,200
Xerox Corp.,
4.375%, 03/15/2023		35,175,000		36,933,750
Xerox Holdings Corp.,
5.000%, 08/15/2025(2)		1,000,000		1,064,270
Yara International ASA,
3.800%, 06/06/2026(1)(2)		20,250,000		22,606,598
Zimmer Biomet Holdings, Inc.:
3.550%, 04/01/2025		20,000,000		22,091,871
5.750%, 11/30/2039		9,000,000		11,813,684
Zoetis, Inc.:
3.250%, 02/01/2023		24,701,000		25,982,671
4.500%, 11/13/2025		16,275,000		18,997,452
Total Industrials
(Cost $7,970,786,165)				8,797,804,259		29.8	%
Utilities
American Water Capital Corp.,
2.800%, 05/01/2030		8,500,000		9,382,994
Appalachian Power Co.,
6.700%, 08/15/2037		1,400,000		1,986,679
Avangrid, Inc.,
3.200%, 04/15/2025		14,000,000		15,326,353
Berkshire Hathaway Energy Co.:
3.500%, 02/01/2025		7,000,000		7,709,472
2.850%, 05/15/2051(2)		10,000,000		10,286,725
Consolidated Edison Co. of New York, Inc.,
4.625%, 12/01/2054		7,600,000		10,122,803
Consumers Energy Co.,
3.500%, 08/01/2051		9,425,000		11,530,004
Dominion Energy, Inc.,
2.450%, 01/15/2023(2)		15,000,000		15,606,459

The accompanying notes are an integral part of these financial statements.

Page 171

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Dominion Resources, Inc.,
5.950%, 06/15/2035	$	1,880,000	$	2,634,383
DTE Electric Company,
2.625%, 03/01/2031		30,200,000		33,434,297
Duquesne Light Holdings, Inc.,
2.532%, 10/01/2030(2)		8,775,000		9,076,684
Edison International,
2.950%, 03/15/2023		5,000,000		5,195,311
EDP Finance BV,
3.625%, 07/15/2024(1)(2)		51,299,000		55,986,258
Enel Finance International NV:
2.875%, 05/25/2022(1)(2)		7,500,000		7,738,286
3.625%, 05/25/2027(1)(2)		27,500,000		31,204,771
3.500%, 04/06/2028(1)(2)		7,000,000		7,972,283
4.875%, 06/14/2029(1)(2)		11,775,000		14,701,605
6.800%, 09/15/2037(1)(2)		3,875,000		5,702,790
6.000%, 10/07/2039(1)(2)		1,836,000		2,619,564
4.750%, 05/25/2047(1)(2)		42,584,000		56,703,022
Engie Energia Chile SA,
3.400%, 01/28/2030(1)(2)		3,000,000		3,251,250
Exelon Corp.:
3.950%, 06/15/2025		15,775,000		17,844,437
7.600%, 04/01/2032		1,650,000		2,398,298
5.100%, 06/15/2045		5,875,000		7,959,352
Exelon Generation Co. LLC,
5.600%, 06/15/2042		6,100,000		6,948,510
FirstEnergy Corp.:
2.650%, 03/01/2030		4,300,000		4,313,637
3.400%, 03/01/2050		11,325,000		10,847,457
Fortis Inc.,
3.055%, 10/04/2026(1)		8,762,000		9,644,161
Infraestructura Energetica Nova SAB de CV,
3.750%, 01/14/2028(1)(2)		5,000,000		5,331,250
KeySpan Corp.,
8.000%, 11/15/2030		1,875,000		2,724,418
Liberty Utilities Finance GP 1,
2.050%, 09/15/2030(2)		10,600,000		10,654,805
Mega Advance Investments Ltd.,
5.000%, 05/12/2021(1)(2)		2,800,000		2,832,396
NiSource, Inc.:
3.600%, 05/01/2030		20,800,000		24,069,212
3.950%, 03/30/2048		11,775,000		14,464,391
Oncor Electric Delivery Co. LLC,
2.750%, 05/15/2030		9,500,000		10,636,737

The accompanying notes are an integral part of these financial statements.

Page 172

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
PSEG Power LLC,
3.000%, 06/15/2021	$	25,027,000	$	25,264,169
RGS I&M Funding Corp.,
9.820%, 12/07/2022		163,069		167,830
Southern Co.,
2.950%, 07/01/2023		17,400,000		18,425,969
Talent Yield Investments Ltd.,
4.500%, 04/25/2022(1)(2)		6,000,000		6,238,099
Total Utilities
(Cost $445,522,826)				498,937,121		1.7	%
Financials
ABN AMRO Bank NV:
7.750%, 05/15/2023(1)(2)		8,000,000		9,160,296
4.750%, 07/28/2025(1)(2)		37,818,000		43,522,883
4.800%, 04/18/2026(1)(2)		47,025,000		55,103,015
AerCap Holdings NV:
4.875%, 01/16/2024(1)		6,708,000		7,323,166
2.875%, 08/14/2024(1)		39,395,000		40,970,249
6.500%, 07/15/2025(1)		15,000,000		17,931,739
AIA Group Ltd.,
3.200%, 03/11/2025(1)(2)		9,000,000		9,709,650
AIG Life Holdings, Inc.,
6.625%, 02/15/2029		16,500,000		21,474,573
AIG SunAmerica Global Financing X,
6.900%, 03/15/2032(2)		2,000,000		3,012,793
Air Lease Corp.:
4.250%, 02/01/2024		8,175,000		8,872,010
2.300%, 02/01/2025		14,150,000		14,648,707
Allstate Corp.,
3.850%, 08/10/2049		10,968,000		13,750,708
Ally Financial, Inc.:
1.450%, 10/02/2023		15,000,000		15,312,286
5.125%, 09/30/2024		13,000,000		14,986,863
5.800%, 05/01/2025		10,000,000		11,874,507
American International Group, Inc.:
4.875%, 06/01/2022		25,951,000		27,533,027
3.750%, 07/10/2025		11,400,000		12,807,844
3.875%, 01/15/2035		15,000,000		17,998,207
6.820%, 11/15/2037		4,173,000		5,928,294
AmSouth Bancorporation,
6.750%, 11/01/2025		1,110,000		1,362,886
Anthem, Inc.:
3.350%, 12/01/2024		7,050,000		7,767,884
2.375%, 01/15/2025		4,075,000		4,358,417

The accompanying notes are an integral part of these financial statements.

Page 173

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
ANZ New Zealand (Int’l) Ltd.:
2.750%, 02/03/2021(1)(2)	$	10,000,000	$	10,019,200
2.125%, 07/28/2021(1)(2)		17,175,000		17,348,046
Aon PLC,
3.875%, 12/15/2025(1)		14,490,000		16,519,456
Assurant, Inc.:
1.501%, 03/26/2021
(3 Month LIBOR USD + 1.250%)(3)		1,916,000		1,916,026
4.900%, 03/27/2028		3,000,000		3,445,996
3.700%, 02/22/2030		7,000,000		7,789,043
Australia & New Zealand Banking Group Ltd.:
4.500%, 03/19/2024(1)(2)		32,000,000		35,276,388
2.950%, 07/22/2030
(5 Year CMT Rate + 1.288%)(1)(2)(3)		14,803,000		15,618,612
2.570%, 11/25/2035
(5 Year CMT Rate + 1.700%)(1)(2)(3)		13,000,000		13,262,219
Avolon Holdings Funding Ltd.:
5.250%, 05/15/2024(1)(2)		5,000,000		5,438,076
2.875%, 02/15/2025(1)(2)		10,000,000		10,196,666
Banco Bilbao Vizcaya Argentaria SA,
1.125%, 09/18/2025(1)		15,000,000		15,108,371
Banco Santander Chile,
2.700%, 01/10/2025(1)(2)		8,000,000		8,470,080
Banco Santander SA:
3.500%, 04/11/2022(1)		12,000,000		12,461,446
3.848%, 04/12/2023(1)		16,700,000		17,937,784
5.179%, 11/19/2025(1)		11,150,000		13,074,417
Bank of America Corp.:
2.625%, 04/19/2021		17,500,000		17,622,356
3.300%, 01/11/2023		22,650,000		24,013,756
3.004%, 12/20/2023
(3 Month LIBOR USD + 0.790%)(3)		8,352,000		8,790,564
3.864%, 07/23/2024
(3 Month LIBOR USD + 0.940%)(3)		12,575,000		13,633,834
3.458%, 03/15/2025
(3 Month LIBOR USD + 0.970%)(3)		9,650,000		10,506,839
3.093%, 10/01/2025
(3 Month LIBOR USD + 1.090%)(3)		22,000,000		23,815,359
2.456%, 10/22/2025
(3 Month LIBOR USD + 0.870%)(3)		8,000,000		8,528,232
3.366%, 01/23/2026
(3 Month LIBOR USD + 0.810%)(3)		22,700,000		24,990,441
3.248%, 10/21/2027		6,000,000		6,714,556
3.419%, 12/20/2028
(3 Month LIBOR USD + 1.040%)(3)		10,539,000		11,904,265

The accompanying notes are an integral part of these financial statements.

Page 174

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Bank of America Corp.: (cont.)
2.496%, 02/13/2031
(3 Month LIBOR USD + 0.990%)(3)	$	7,000,000	$	7,434,467
2.592%, 04/29/2031 (SOFR + 2.150%)(3)		35,000,000		37,511,544
7.750%, 05/14/2038		725,000		1,236,130
Bank of Montreal:
1.900%, 08/27/2021(1)		26,450,000		26,742,687
3.803%, 12/15/2032
(5 Year Swap Rate USD + 1.432%)(1)(3)		5,000,000		5,667,458
Bank of New Zealand,
2.000%, 02/21/2025(1)(2)		15,475,000		16,301,743
Bank of Nova Scotia:
2.450%, 09/19/2022(1)		8,225,000		8,543,627
1.625%, 05/01/2023(1)		11,425,000		11,753,748
4.500%, 12/16/2025(1)		8,048,000		9,383,502
Banque Federative du Credit Mutuel SA,
3.750%, 07/20/2023(1)(2)		12,475,000		13,481,969
Barclays PLC:
3.250%, 01/12/2021(1)		25,000,000		25,013,490
3.684%, 01/10/2023(1)		22,500,000		23,189,599
4.610%, 02/15/2023
(3 Month LIBOR USD + 1.400%)(1)(3)		10,000,000		10,439,342
4.338%, 05/16/2024
(3 Month LIBOR USD + 1.356%)(1)(3)		5,000,000		5,411,552
3.650%, 03/16/2025(1)		17,350,000		19,087,360
3.932%, 05/07/2025
(3 Month LIBOR USD + 1.610%)(1)(3)		23,400,000		25,599,474
2.852%, 05/07/2026
(3 Month LIBOR USD + 2.452%)(1)(3)		10,000,000		10,739,405
4.337%, 01/10/2028(1)		10,000,000		11,487,879
BBVA USA:
2.875%, 06/29/2022		15,700,000		16,269,625
3.875%, 04/10/2025		45,470,000		50,989,598
Berkshire Hathaway Finance Corp.,
4.400%, 05/15/2042		3,500,000		4,649,824
BGC Partners, Inc.,
4.375%, 12/15/2025		13,000,000		13,750,983
BNP Paribas SA:
3.500%, 03/01/2023(1)(2)		4,000,000		4,256,503
3.375%, 01/09/2025(1)(2)		8,000,000		8,754,783
4.375%, 09/28/2025(1)(2)		14,700,000		16,816,590
2.819%, 11/19/2025
(3 Month LIBOR USD + 1.111%)(1)(2)(3)		42,500,000		45,301,729
2.219%, 06/09/2026 (SOFR + 2.074%)(1)(2)(3)		10,000,000		10,466,317
1.904%, 09/30/2028 (SOFR + 1.609%)(1)(2)(3)		16,000,000		16,266,684

The accompanying notes are an integral part of these financial statements.

Page 175

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
BNP Paribas SA: (cont.)
3.052%, 01/13/2031 (SOFR + 1.507%)(1)(2)(3)	$	10,500,000	$	11,457,893
2.588%, 08/12/2035
(5 Year CMT Rate + 2.050%)(1)(2)(3)		5,000,000		5,111,632
BNZ International Funding Ltd.:
2.750%, 03/02/2021 (1)(2)		18,750,000		18,824,060
3.375%, 03/01/2023 (1)(2)		24,750,000		26,284,347
BPCE SA:
5.700%, 10/22/2023 (1)(2)		33,770,000		38,222,182
4.625%, 07/11/2024 (1)(2)		3,185,000		3,560,420
5.150%, 07/21/2024 (1)(2)		30,902,000		35,189,251
2.375%, 01/14/2025 (1)(2)		5,000,000		5,284,270
4.500%, 03/15/2025 (1)(2)		40,275,000		45,527,317
1.652%, 10/06/2026 (SOFR + 1.520%)(1)(2)(3)		25,000,000		25,583,316
Brown & Brown, Inc.,
4.500%, 03/15/2029		11,840,000		14,015,434
Canadian Imperial Bank of Commerce,
2.250%, 01/28/2025(1)		8,000,000		8,497,741
Cantor Fitzgerald LP,
4.875%, 05/01/2024(2)		7,525,000		8,377,385
Capital One Financial Corp.:
3.200%, 01/30/2023		5,000,000		5,268,009
3.750%, 07/28/2026		5,000,000		5,672,328
3.650%, 05/11/2027		16,750,000		19,203,266
3.800%, 01/31/2028		6,960,000		8,020,716
Capital One NA,
3.375%, 02/15/2023		54,066,000		57,134,368
Centene Corp.,
3.000%, 10/15/2030		10,000,000		10,599,000
CIT Bank NA,
2.969%, 09/27/2025 (SOFR + 1.715%)(3)		21,219,000		22,226,902
CIT Group, Inc.:
4.125%, 03/09/2021		100,000		100,300
5.000%, 08/01/2023		5,000,000		5,462,500
4.750%, 02/16/2024		13,000,000		14,218,750
5.250%, 03/07/2025		100,000		113,500
Citigroup, Inc.:
2.350%, 08/02/2021		8,125,000		8,219,633
3.142%, 01/24/2023
(3 Month LIBOR USD + 0.722%)(3)		10,000,000		10,282,880
2.876%, 07/24/2023
(3 Month LIBOR USD + 0.950%)(3)		12,450,000		12,932,843
1.655%, 09/01/2023
(3 Month LIBOR USD + 1.430%)(3)		8,000,000		8,136,866

The accompanying notes are an integral part of these financial statements.

Page 176

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Citigroup, Inc.: (cont.)
3.352%, 04/24/2025
(3 Month LIBOR USD + 0.897%)(3)	$	11,000,000	$	11,958,934
3.700%, 01/12/2026		4,700,000		5,340,883
3.106%, 04/08/2026 (SOFR + 2.750%)(3)		15,000,000		16,388,431
3.200%, 10/21/2026		10,931,000		12,217,226
3.887%, 01/10/2028
(3 Month LIBOR USD + 1.563%)(3)		30,000,000		34,382,355
2.572%, 06/03/2031 (SOFR + 2.107%)(3)		50,000,000		53,293,008
Citizens Bank NA:
2.550%, 05/13/2021		6,175,000		6,213,132
2.250%, 04/28/2025		9,000,000		9,549,630
Citizens Financial Group, Inc.:
2.850%, 07/27/2026		23,400,000		26,042,498
3.250%, 04/30/2030		40,000,000		45,075,981
CNA Financial Corp.:
7.250%, 11/15/2023		12,400,000		14,703,488
4.500%, 03/01/2026		21,125,000		24,851,545
3.450%, 08/15/2027		9,000,000		10,195,667
CNO Financial Group, Inc.,
5.250%, 05/30/2025		18,640,000		21,636,883
Comerica Bank,
4.000%, 07/27/2025		21,425,000		24,175,577
Commonwealth Bank of Australia:
4.500%, 12/09/2025(1)(2)		19,000,000		21,919,698
3.610%, 09/12/2034
(5 Year CMT Rate + 2.050%)(1)(2)(3)		35,000,000		38,451,397
Cooperatieve Rabobank UA:
3.875%, 02/08/2022(1)		4,150,000		4,315,243
4.625%, 12/01/2023(1)		7,229,000		8,057,093
4.375%, 08/04/2025(1)		11,805,000		13,472,762
3.750%, 07/21/2026(1)		36,000,000		40,685,778
Credit Agricole SA:
3.375%, 01/10/2022(1)(2)		23,225,000		23,931,575
3.750%, 04/24/2023(1)(2)		8,375,000		8,990,385
3.250%, 10/04/2024(1)(2)		8,575,000		9,301,966
4.375%, 03/17/2025(1)(2)		37,093,000		41,631,922
1.907%, 06/16/2026 (SOFRINDX + 1.676%)(1)(2)(3)		7,000,000		7,260,448
3.250%, 01/14/2030(1)(2)		5,000,000		5,486,072
Credit Suisse Group AG:
3.574%, 01/09/2023(1)(2)		9,000,000		9,272,772
4.207%, 06/12/2024
(3 Month LIBOR USD + 1.240%)(1)(2)(3)		6,000,000		6,500,534
2.593%, 09/11/2025 (SOFR + 1.560%)(1)(2)(3)		13,700,000		14,416,146
2.193%, 06/05/2026 (SOFR + 2.044%)(1)(2)(3)		10,000,000		10,450,524

The accompanying notes are an integral part of these financial statements.

Page 177

Baird Core Plus Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Credit Suisse Group AG: (cont.)
4.282%, 01/09/2028(1)(2)	$	16,750,000	$	19,356,550
3.869%, 01/12/2029
(3 Month LIBOR USD + 1.410%)(1)(2)(3)		10,850,000		12,288,724
4.194%, 04/01/2031 (SOFR + 3.730%)(1)(2)(3)		20,000,000		23,539,472
Credit Suisse Group Funding Guernsey Ltd.:
3.800%, 06/09/2023(1)		21,400,000		23,047,600
3.750%, 03/26/2025(1)		15,000,000		16,653,142
4.550%, 04/17/2026(1)		5,000,000		5,882,498
CyrusOne LP / CyrusOne Finance Corp.:
2.900%, 11/15/2024		10,000,000		10,676,100
3.450%, 11/15/2029		1,485,000		1,597,459
2.150%, 11/01/2030		11,000,000		10,721,590
Daiwa Securities Group, Inc.,
3.129%, 04/19/2022(1)(2)		14,175,000		14,631,719
Danske Bank A/S,
1.621%, 09/11/2026
(1 Year CMT Rate + 1.350%)(1)(2)(3)		20,450,000		20,542,328
Deutsche Bank AG:
3.150%, 01/22/2021(1)		16,954,000		16,972,804
3.375%, 05/12/2021(1)		5,450,000		5,502,470
4.250%, 10/14/2021(1)		29,900,000		30,660,265
5.000%, 02/14/2022(1)		10,000,000		10,455,287
3.300%, 11/16/2022(1)		17,625,000		18,380,045
3.950%, 02/27/2023(1)		14,875,000		15,804,383
5.882%, 07/08/2031 (SOFR + 5.438%)(1)(3)		30,000,000		35,967,704
3.547%, 09/18/2031 (SOFR + 3.043%)(1)(3)		10,000,000		10,837,412
Digital Realty Trust LP:
4.450%, 07/15/2028		7,000,000		8,416,354
3.600%, 07/01/2029		41,950,000		48,095,280
Discover Bank:
3.350%, 02/06/2023		7,000,000		7,386,314
4.682%, 08/09/2028
(5 Year Swap Rate USD + 1.730%)(3)		6,500,000		6,909,500
4.650%, 09/13/2028		23,225,000		27,783,573
Discover Financial Services:
3.950%, 11/06/2024		25,000,000		27,760,902
4.100%, 02/09/2027		13,379,000		15,413,685
DNB Bank ASA,
1.127%, 09/16/2026
(5 Year CMT Rate + 0.850%)(1)(2)(3)		10,000,000		10,105,969
First Horizon National Corp.,
4.000%, 05/26/2025		30,000,000		33,515,570
First Republic Bank,
4.625%, 02/13/2047		1,850,000		2,441,903

The accompanying notes are an integral part of these financial statements.

Page 178

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Five Corners Funding Trust II,
2.850%, 05/15/2030(2)	$	10,000,000	$	11,062,110
FMR LLC:
4.950%, 02/01/2033(2)		4,235,000		5,698,558
6.500%, 12/14/2040(2)		1,820,000		2,825,562
GE Capital Funding LLC:
4.050%, 05/15/2027(2)		10,000,000		11,439,940
4.550%, 05/15/2032(2)		10,000,000		12,001,181
GE Capital International Funding Co. Unlimited Co.:
3.373%, 11/15/2025(1)		5,000,000		5,549,347
4.418%, 11/15/2035(1)		51,000,000		60,870,847
Globe Life, Inc.:
3.800%, 09/15/2022		1,275,000		1,343,920
4.550%, 09/15/2028		9,350,000		11,220,728
Goldman Sachs Group, Inc.:
5.250%, 07/27/2021		1,100,000		1,130,888
5.750%, 01/24/2022		15,100,000		15,960,636
1.824%, 11/29/2023
(3 Month LIBOR USD + 1.600%(3)		10,000,000		10,342,610
3.500%, 01/23/2025		9,400,000		10,374,398
3.500%, 04/01/2025		10,000,000		11,109,897
3.272%, 09/29/2025
(3 Month LIBOR USD + 1.201%)(3)		24,000,000		26,290,211
3.814%, 04/23/2029
(3 Month LIBOR USD + 1.158%)(3)		17,875,000		20,688,889
4.223%, 05/01/2029
(3 Month LIBOR USD + 1.301%)(3)		15,050,000		17,854,765
6.345%, 02/15/2034		125,000		174,599
6.750%, 10/01/2037		300,000		459,048
Guardian Life Insurance Co. of America:
4.875%, 06/19/2064(2)		11,215,000		14,966,980
3.700%, 01/22/2070(2)		14,000,000		15,694,545
4.850%, 01/24/2077(2)		15,693,000		22,007,925
Harborwalk Funding Trust,
5.077%, 02/15/2069
(3 Month LIBOR USD + 3.191%)(2)(3)		10,000,000		12,984,154
Hartford Financial Services Group, Inc.:
6.100%, 10/01/2041		2,925,000		4,374,563
3.600%, 08/19/2049		15,725,000		18,452,924
High Street Funding Trust I,
4.111%, 02/15/2028(2)		9,000,000		10,377,630
High Street Funding Trust II,
4.682%, 02/15/2048(2)		7,000,000		8,974,630
Highmark, Inc.,
4.750%, 05/15/2021(2)		7,800,000		7,926,699

The accompanying notes are an integral part of these financial statements.

Page 179

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
HSBC Holdings PLC:
3.262%, 03/13/2023
(3 Month LIBOR USD + 1.055%)(1)(3)	$	30,996,000	$	32,017,200
3.600%, 05/25/2023(1)		6,000,000		6,453,674
3.950%, 05/18/2024
(3 Month LIBOR USD + 0.987%)(1)(3)		9,000,000		9,708,007
3.803%, 03/11/2025
(3 Month LIBOR USD + 1.211%)(1)(3)		5,200,000		5,677,492
1.645%, 04/18/2026 (SOFR + 1.538%)(1)(3)		8,125,000		8,309,938
1.589%, 05/24/2027 (SOFR + 1.290%)(1)(3)		10,000,000		10,169,172
2.013%, 09/22/2028 (SOFR + 1.732%)(1)(3)		25,000,000		25,593,172
4.583%, 06/19/2029
(3 Month LIBOR USD + 1.535%)(1)(3)		17,125,000		20,259,767
3.973%, 05/22/2030
(3 Month LIBOR USD + 1.610%)(1)(3)		4,775,000		5,513,932
Humana, Inc.,
8.150%, 06/15/2038		8,983,000		14,363,465
Huntington Bancshares, Inc.:
3.150%, 03/14/2021		10,725,000		10,758,090
2.300%, 01/14/2022		6,951,000		7,076,215
2.625%, 08/06/2024		1,500,000		1,602,948
ING Groep NV,
3.150%, 03/29/2022(1)		4,000,000		4,136,752
Invesco Finance PLC,
3.125%, 11/30/2022(1)		5,500,000		5,776,401
Jackson National Life Global Funding,
3.250%, 01/30/2024(2)		10,000,000		10,751,510
Jefferies Group LLC:
4.850%, 01/15/2027		15,750,000		18,423,618
6.450%, 06/08/2027		1,300,000		1,648,061
4.150%, 01/23/2030		30,200,000		35,200,368
John Hancock Life Insurance Co.,
7.375%, 02/15/2024(2)		17,615,000		20,765,460
JPMorgan Chase & Co.:
3.200%, 01/25/2023		5,350,000		5,663,578
1.445%, 10/24/2023
(3 Month LIBOR USD + 1.230%)(3)		10,000,000		10,179,111
3.559%, 04/23/2024
(3 Month LIBOR USD + 0.730%)(3)		15,575,000		16,693,530
3.125%, 01/23/2025		21,850,000		23,931,409
2.301%, 10/15/2025 (SOFR + 1.160%)(3)		19,859,000		21,080,846
2.005%, 03/13/2026 (SOFR + 1.585%)(3)		17,000,000		17,856,661
2.083%, 04/22/2026 (SOFR + 1.850%)(3)		71,000,000		74,984,985
1.045%, 11/19/2026 (SOFR + 0.800%)(3)		18,500,000		18,709,050
2.522%, 04/22/2031 (SOFR + 2.040%)(3)		30,500,000		32,783,293

The accompanying notes are an integral part of these financial statements.

Page 180

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
KeyBank NA,
3.400%, 05/20/2026	$	21,575,000	$	24,223,774
LeasePlan Corp. NV,
2.875%, 10/24/2024(1)(2)		77,403,000		81,788,505
Liberty Mutual Group, Inc.:
6.500%, 03/15/2035(2)		750,000		1,122,135
3.951%, 10/15/2050(2)		900,000		1,077,753
Liberty Mutual Insurance Co.,
7.697%, 10/15/2097(2)		375,000		602,905
Life Storage LP:
3.875%, 12/15/2027		2,575,000		2,942,032
2.200%, 10/15/2030		6,950,000		7,094,356
Lincoln National Corp.:
3.400%, 01/15/2031		23,000,000		26,356,321
6.300%, 10/09/2037		2,190,000		3,018,667
Lloyds Bank PLC:
4.050%, 08/16/2023(1)		6,575,000		7,185,014
2.907%, 11/07/2023
(3 Month LIBOR USD + 0.810%)(1)(3)		21,520,000		22,482,803
3.870%, 07/09/2025 (1 Year CMT Rate + 3.500%)(1)(3)		15,000,000		16,537,284
3.750%, 01/11/2027(1)		7,800,000		8,845,355
4.375%, 03/22/2028(1)		15,000,000		17,852,182
3.574%, 11/07/2028
(3 Month LIBOR USD + 1.205%)(1)(3)		21,550,000		24,335,158
Macquarie Bank Ltd.:
6.625%, 04/07/2021(1)(2)		275,000		279,292
4.875%, 06/10/2025(1)(2)		7,800,000		8,850,832
3.624%, 06/03/2030(1)(2)		28,805,000		31,534,685
Macquarie Group Ltd.:
3.189%, 11/28/2023
(3 Month LIBOR USD + 1.023%)(1)(2)(3)		35,850,000		37,477,636
4.150%, 03/27/2024
(3 Month LIBOR USD + 1.330%)(1)(2)(3)		21,000,000		22,564,607
Manulife Financial Corp.:
4.150%, 03/04/2026(1)		15,000,000		17,447,416
2.484%, 05/19/2027(1)		15,225,000		16,522,436
Marsh & McLennan Companies, Inc.:
4.800%, 07/15/2021		1,000,000		1,013,784
3.300%, 03/14/2023		6,875,000		7,278,619
3.750%, 03/14/2026		9,225,000		10,466,908
5.875%, 08/01/2033		3,729,000		5,363,384
Massachusetts Mutual Life Insurance Co.:
7.625%, 11/15/2023(2)		3,184,000		3,607,222
3.729%, 10/15/2070(2)		19,253,000		21,256,537
4.900%, 04/01/2077(2)		8,000,000		10,989,819

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
MBIA Insurance Corp.,
11.497%, 01/15/2033
(3 Month LIBOR USD + 11.260%)(2)(3)(9)	$	700,000	$	245,000
MetLife, Inc.:
4.875%, 11/13/2043		3,375,000		4,801,460
4.050%, 03/01/2045		9,025,000		11,571,395
Metropolitan Life Insurance Co.,
7.800%, 11/01/2025(2)		3,725,000		4,821,533
Mitsubishi UFJ Financial Group, Inc.:
2.190%, 09/13/2021(1)		11,039,000		11,180,741
3.455%, 03/02/2023(1)		15,000,000		15,982,358
2.801%, 07/18/2024(1)		10,000,000		10,719,386
2.193%, 02/25/2025(1)		11,500,000		12,148,549
Mizuho Financial Group, Inc.:
2.953%, 02/28/2022(1)		9,750,000		10,041,798
2.601%, 09/11/2022(1)		5,000,000		5,188,922
3.922%, 09/11/2024
(3 Month LIBOR USD + 1.000%)(1)(3)		9,000,000		9,785,798
2.555%, 09/13/2025
(3 Month LIBOR USD + 1.100%)(1)(3)		20,000,000		21,126,387
3.170%, 09/11/2027(1)		24,650,000		27,501,062
1.979%, 09/08/2031
(3 Month LIBOR USD + 1.270%)(1)(3)		13,250,000		13,485,459
Morgan Stanley:
3.125%, 01/23/2023		15,000,000		15,830,549
3.750%, 02/25/2023		1,000,000		1,072,171
1.615%, 10/24/2023
(3 Month LIBOR USD + 1.400%)(3)		10,000,000		10,189,847
3.737%, 04/24/2024
(3 Month LIBOR USD + 0.847%)(3)		25,000,000		26,898,938
3.700%, 10/23/2024		5,000,000		5,563,991
2.720%, 07/22/2025 (SOFR + 1.152%)(3)		15,000,000		16,043,654
4.000%, 07/23/2025		2,500,000		2,860,930
3.875%, 01/27/2026		7,000,000		8,029,518
2.188%, 04/28/2026 (SOFR + 1.990%)(3)		40,000,000		42,249,679
3.125%, 07/27/2026		13,175,000		14,726,573
3.591%, 07/22/2028
(3 Month LIBOR USD + 1.340%)(3)		15,350,000		17,525,017
MUFG Americas Holdings Corp.,
3.500%, 06/18/2022		1,150,000		1,203,051
National Australia Bank Ltd.:
2.332%, 08/21/2030(1)(2)		53,625,000		54,516,646
3.933%, 08/02/2034
(5 Year CMT Rate + 1.880%)(1)(2)(3)		5,000,000		5,615,103

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
National Securities Clearing Corp.,
1.500%, 04/23/2025(2)	$	13,000,000	$	13,457,038
Nationwide Building Society:
3.766%, 03/08/2024
(3 Month LIBOR USD + 1.064%)(1)(2)(3)		14,500,000		15,426,177
3.900%, 07/21/2025(1)(2)		8,100,000		9,125,340
4.000%, 09/14/2026(1)(2)		63,424,000		70,607,326
4.302%, 03/08/2029
(3 Month LIBOR USD + 1.452%)(1)(2)(3)		1,425,000		1,655,829
3.960%, 07/18/2030
(3 Month LIBOR USD + 1.855%)(1)(2)(3)		10,125,000		11,796,155
4.125%, 10/18/2032
(5 Year Mid Swap Rate USD + 1.849%)(1)(2)(3)		8,000,000		8,749,028
Nationwide Financial Services, Inc.:
5.375%, 03/25/2021(2)		15,088,000		15,251,920
3.900%, 11/30/2049(2)		17,500,000		19,489,565
Nationwide Mutual Insurance Co.:
7.875%, 04/01/2033(2)		5,600,000		8,098,590
9.375%, 08/15/2039(2)		27,409,000		47,720,951
New England Mutual Life Insurance Co.,
7.875%, 02/15/2024(2)		3,200,000		3,829,643
New York Life Insurance Co.:
6.750%, 11/15/2039(2)		25,105,000		38,923,004
4.450%, 05/15/2069(2)		10,000,000		13,437,082
Nomura Holdings, Inc.:
2.648%, 01/16/2025(1)		10,000,000		10,679,688
1.851%, 07/16/2025(1)		15,000,000		15,589,144
Peachtree Corners Funding Trust,
3.976%, 02/15/2025(2)		16,000,000		17,741,075
People’s United Bank NA,
4.000%, 07/15/2024		4,400,000		4,743,047
Pine Street Trust I,
4.572%, 02/15/2029(2)		5,000,000		5,927,633
Principal Financial Group, Inc.:
3.300%, 09/15/2022		1,215,000		1,274,770
3.125%, 05/15/2023		3,675,000		3,906,310
Protective Life Corp.,
4.300%, 09/30/2028(2)		4,105,000		4,798,447
Prudential Financial, Inc.,
3.878%, 03/27/2028		11,025,000		12,963,463
Prudential Insurance Co. of America,
8.300%, 07/01/2025(2)		21,011,000		27,234,712
Raymond James Financial, Inc.:
3.625%, 09/15/2026		425,000		487,544
4.950%, 07/15/2046		15,000,000		20,556,721

The accompanying notes are an integral part of these financial statements.

Page 183

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Realty Income Corp.,
3.875%, 04/15/2025	$	10,000,000	$	11,264,487
Regions Bank,
6.450%, 06/26/2037		3,864,000		5,464,403
Regions Financial Corp.:
3.800%, 08/14/2023		19,737,000		21,410,785
2.250%, 05/18/2025		16,650,000		17,656,948
Reliance Standard Life Global Funding II:
3.050%, 01/20/2021(2)		10,954,000		10,966,552
2.625%, 07/22/2022(2)		9,700,000		9,970,306
2.500%, 10/30/2024(2)		20,000,000		20,743,872
Rexford Industrial Realty LP,
2.125%, 12/01/2030		10,000,000		10,013,124
Royal Bank of Canada,
4.650%, 01/27/2026(1)		29,930,000		35,333,237
Royal Bank of Scotland Group PLC:
3.498%, 05/15/2023
(3 Month LIBOR USD + 1.480%(1)(3)		62,335,000		64,719,223
4.519%, 06/25/2024
(3 Month LIBOR USD + 1.550%(1)(3)		17,475,000		19,079,390
4.269%, 03/22/2025
(3 Month LIBOR USD + 1.762%)(1)(3)		8,300,000		9,182,217
4.892%, 05/18/2029
(3 Month LIBOR USD + 1.754%)(1)(3)		5,150,000		6,189,000
4.445%, 05/08/2030
(3 Month LIBOR USD + 1.871%)(1)(3)		11,000,000		13,104,750
Santander Holdings USA, Inc.:
3.400%, 01/18/2023		5,750,000		6,039,697
3.450%, 06/02/2025		10,000,000		10,921,045
Santander UK Group Holdings PLC:
2.875%, 08/05/2021(1)		9,375,000		9,506,302
3.823%, 11/03/2028
(3 Month LIBOR USD + 1.400%)(1)(3)		6,000,000		6,767,482
Santander UK PLC:
5.000%, 11/07/2023(1)(2)		36,375,000		40,152,748
4.000%, 03/13/2024(1)		7,700,000		8,516,509
SMBC Aviation Capital Finance DAC,
3.550%, 04/15/2024(1)(2)		15,000,000		15,933,276
Societe Generale SA:
4.250%, 09/14/2023(1)(2)		9,725,000		10,606,070
5.000%, 01/17/2024(1)(2)		18,000,000		19,868,834
3.875%, 03/28/2024(1)(2)		10,000,000		10,902,883
2.625%, 10/16/2024(1)(2)		14,575,000		15,443,420
2.625%, 01/22/2025(1)(2)		34,600,000		36,644,497
4.250%, 04/14/2025(1)(2)		21,975,000		24,208,162

The accompanying notes are an integral part of these financial statements.

Page 184

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Societe Generale SA: (cont.)
4.250%, 08/19/2026(1)(2)	$	18,572,000	$	20,782,548
1.488%, 12/14/2026
(1 Year CMT Rate + 1.100%)(1)(2)(3)		6,800,000		6,860,072
Standard Chartered PLC:
3.050%, 01/15/2021(1)(2)		14,000,000		14,010,508
3.885%, 03/15/2024
(3 Month LIBOR USD + 1.080%)(1)(2)(3)		17,600,000		18,721,028
3.785%, 05/21/2025
(3 Month LIBOR USD + 1.560%)(1)(2)(3)		40,500,000		43,918,502
2.819%, 01/30/2026
(3 Month LIBOR USD + 1.209%)(1)(2)(3)		8,800,000		9,321,471
4.644%, 04/01/2031
(5 Year CMT Rate + 3.850%)(1)(2)(3)		7,000,000		8,467,898
5.700%, 03/26/2044(1)(2)		14,000,000		18,778,821
State Street Corp.,
2.901%, 03/30/2026 (SOFR + 2.600%)(3)		12,975,000		14,133,926
Stifel Financial Corp.:
4.250%, 07/18/2024		19,615,000		22,037,646
4.000%, 05/15/2030		6,325,000		7,227,817
Sumitomo Mitsui Banking Corp.,
3.000%, 01/18/2023(1)		2,500,000		2,630,897
Sumitomo Mitsui Financial Group, Inc.:
2.784%, 07/12/2022(1)		13,325,000		13,814,398
3.102%, 01/17/2023(1)		16,125,000		17,012,266
2.696%, 07/16/2024(1)		10,400,000		11,103,536
2.448%, 09/27/2024(1)		20,000,000		21,300,172
SunTrust Banks, Inc.:
3.689%, 08/02/2024
(3 Month LIBOR USD + 0.735%)(3)		6,345,000		6,871,400
3.300%, 05/15/2026		28,734,000		32,129,421
Swedbank AB,
2.650%, 03/10/2021(1)(2)		7,025,000		7,054,463
Synchrony Financial:
3.750%, 08/15/2021		16,825,000		17,065,826
4.250%, 08/15/2024		33,325,000		36,821,352
4.500%, 07/23/2025		12,795,000		14,393,952
3.700%, 08/04/2026		5,388,000		5,980,300
3.950%, 12/01/2027		43,000,000		48,230,147
Synovus Financial Corp.,
3.125%, 11/01/2022		19,588,000		20,338,631
Travelers Companies, Inc.,
2.550%, 04/27/2050		8,775,000		9,237,397
Trinity Acquisition PLC:
4.400%, 03/15/2026(1)		15,776,000		18,380,418
6.125%, 08/15/2043(1)		22,605,000		33,487,438

The accompanying notes are an integral part of these financial statements.

Page 185

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
UBS Group Funding Switzerland AG:
2.650%, 02/01/2022(1)(2)	$	10,000,000	$	10,254,224
3.491%, 05/23/2023(1)(2)		34,075,000		35,459,237
2.859%, 08/15/2023
(3 Month LIBOR USD + 0.954%)(1)(2)(3)		31,700,000		32,862,517
4.125%, 09/24/2025(1)(2)		6,500,000		7,442,877
UnitedHealth Group, Inc.,
4.625%, 07/15/2035		12,175,000		16,314,525
Voya Financial, Inc.,
3.650%, 06/15/2026		7,102,000		8,122,740
Wells Fargo & Co.:
3.069%, 01/24/2023		12,000,000		12,342,497
1.444%, 10/31/2023
(3 Month LIBOR USD + 1.230%)(3)		10,000,000		10,157,998
1.654%, 06/02/2024 (SOFR + 1.600%)(3)		12,375,000		12,720,058
3.000%, 02/19/2025		5,225,000		5,680,328
2.406%, 10/30/2025
(3 Month LIBOR USD + 0.825%)(3)		10,000,000		10,573,701
2.164%, 02/11/2026
(3 Month LIBOR USD + 0.750%)(3)		15,000,000		15,773,117
3.000%, 04/22/2026		4,000,000		4,402,390
2.393%, 06/02/2028 (SOFR + 2.100%)(3)		9,236,000		9,832,849
3.068%, 04/30/2041 (SOFR + 2.530%)(3)		35,000,000		38,072,966
5.013%, 04/04/2051
(3 Month LIBOR USD + 4.240%)(3)		8,000,000		11,369,737
Westpac Banking Corp.:
2.100%, 05/13/2021(1)		13,300,000		13,392,077
2.894%, 02/04/2030
(5 Year CMT Rate + 1.350%)(1)(3)		18,059,000		18,931,867
4.322%, 11/23/2031
(5 Year Mid Swap Rate USD + 2.236%)(1)(3)		10,000,000		11,402,751
4.110%, 07/24/2034
(5 Year CMT Rate + 2.000%)(1)(3)		10,000,000		11,411,259
2.668%, 11/15/2035
(5 Year CMT Rate + 1.750%)(1)(3)		10,000,000		10,301,600
Willis North America, Inc.:
2.950%, 09/15/2029		10,600,000		11,597,648
5.050%, 09/15/2048		15,000,000		21,098,729
Willis Towers Watson PLC,
5.750%, 03/15/2021(1)		20,329,000		20,533,711
Total Financials
(Cost $5,567,936,454)				6,064,934,808		20.6	%
Total Corporate Bonds
(Cost $13,984,245,445)				15,361,676,188		52.1	%

The accompanying notes are an integral part of these financial statements.

Page 186

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Municipal Bonds
Bellevue Union School District,
5.000%, 08/01/2028	$	625,000	$	743,775
Brazos Higher Education Authority, Inc.:
1.931%, 04/01/2024		1,000,000		1,036,300
1.981%, 04/01/2025		1,000,000		1,044,400
2.076%, 04/01/2026		1,000,000		1,052,450
2.176%, 04/01/2027		1,300,000		1,336,413
2.310%, 04/01/2028		1,000,000		1,029,180
2.410%, 04/01/2029		2,360,000		2,416,144
2.510%, 04/01/2030		1,175,000		1,199,311
2.760%, 04/01/2040 (Callable 04/01/2030)		2,285,000		2,259,682
California Housing Finance Agency,
2.794%, 08/01/2036 (Callable 08/01/2025)		8,685,000		8,834,903
California Qualified School
Bond Joint Powers Authority:
6.739%, 09/01/2026		2,415,000		2,880,008
7.155%, 03/01/2027		1,700,000		2,046,613
Central Valley Support Joint Powers Agency,
5.676%, 09/01/2024		1,500,000		1,726,290
City of Vernon CA,
4.500%, 08/01/2022		7,500,000		7,790,700
Colton Joint Unified School District,
6.008%, 08/01/2026		1,250,000		1,582,050
County of Hamilton OH,
3.756%, 06/01/2042		25,725,000		28,960,948
County of Riverside CA,
2.667%, 02/15/2025		15,000,000		15,906,000
Great Lakes Water Authority,
2.615%, 07/01/2036		20,000,000		21,012,000
Hillsborough City School District:
0.000%, 09/01/2036 (Callable 09/01/2021)		10,000,000		5,179,200
0.000%, 09/01/2042 (Callable 09/01/2021)		10,000,000		3,867,900
Illinois International Port District,
5.000%, 01/01/2035 (Callable 01/01/2026)(2)		3,750,000		3,466,912
Iowa Student Loan Liquidity Corp.,
2.989%, 12/01/2039 (Callable 12/01/2029)		5,600,000		5,780,712
Iowa Tobacco Settlement Authority,
6.500%, 06/01/2023 (Callable 02/01/2021)		1,660,000		1,684,585
Massachusetts Educational Financing Authority,
3.775%, 07/01/2035 (Callable 07/01/2029)		10,000,000		10,753,100
Michigan Finance Authority,
4.600%, 10/01/2022		8,990,000		9,127,097

The accompanying notes are an integral part of these financial statements.

Page 187

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Minnesota Housing Finance Agency:
2.680%, 10/01/2046 (Callable 01/01/2026)	$	19,220,073	$	19,833,193
2.650%, 11/01/2046 (Callable 01/01/2026)		18,566,709		19,159,359
New Hampshire Business Finance Authority,
2.872%, 07/01/2035 (Callable 01/01/2035)		18,285,000		19,002,321
New Hampshire Housing Finance Authority:
3.100%, 07/01/2021		1,300,000		1,311,115
3.750%, 07/01/2034 (Callable 07/01/2023)		1,570,000		1,597,805
New Jersey Turnpike Authority,
3.223%, 01/01/2036 (Callable 07/01/2025)(2)		40,000,000		42,409,200
North Carolina Housing Finance Agency:
2.870%, 07/01/2032 (Callable 01/01/2024)		2,030,000		2,073,868
2.812%, 07/01/2035 (Callable 01/01/2024)		2,535,000		2,580,022
North East Independent School District,
5.240%, 08/01/2027		3,000,000		3,844,740
Public Finance Authority,
0.000%, 12/15/2027		19,290,000		14,553,533
Rhode Island Housing & Mortgage Finance Corp.,
2.913%, 10/01/2039 (Callable 10/01/2023)		1,190,000		1,203,233
Rhode Island Student Loan Authority:
2.100%, 12/01/2022		1,125,000		1,127,565
2.200%, 12/01/2023		1,400,000		1,406,174
2.400%, 12/01/2024		1,165,000		1,173,772
2.530%, 12/01/2025		2,310,000		2,334,532
2.730%, 12/01/2026		1,490,000		1,506,912
5.000%, 12/01/2026		1,200,000		1,463,028
2.875%, 12/01/2027		1,800,000		1,818,036
5.000%, 12/01/2027		1,130,000		1,395,923
5.000%, 12/01/2028		1,265,000		1,576,506
5.000%, 12/01/2029		1,295,000		1,620,654
3.625%, 12/01/2037 (Callable 12/01/2030)		6,000,000		6,382,500
State of Illinois,
6.200%, 07/01/2021		3,977,500		4,045,436
Suburban Hospital Healthcare System, Inc.,
7.865%, 02/15/2027		8,755,000		10,425,542
Tennessee Energy Acquisition Corp.,
4.000%, 05/01/2048(4)		16,965,000		18,251,626
Three Rivers Local School District,
5.209%, 09/15/2027 (Callable 02/01/2021)		1,350,000		1,353,685
Toll Road Investors Partnership II LP,
0.000%, 02/15/2027(2)		17,855,000		13,389,388
West Contra Costa Unified School District,
6.250%, 08/01/2030		4,320,000		5,931,965

The accompanying notes are an integral part of these financial statements.

Page 188

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Western Michigan University Homer
Stryker MD School of Medicine,
4.750%, 11/15/2028	$	12,900,000	$	15,036,240
Westlake City School District,
5.227%, 12/01/2026 (Callable 02/01/2021)		1,160,000		1,163,062
Total Municipal Bonds
(Cost $347,510,405)				361,687,608		1.2	%
Residential Mortgage-Backed Securities
U.S. Government Agency Issues
Fannie Mae REMIC Trust:
Series 1991-43, Class J, 7.000%, 05/25/2021		803		807
Series 1991-65, Class Z, 6.500%, 06/25/2021		284		285
Series 1992-129, Class L, 6.000%, 07/25/2022		6,710		6,850
Series 1993-32, Class H, 6.000%, 03/25/2023		3,171		3,306
Series 1993-58, Class H, 5.500%, 04/25/2023		13,744		14,230
Federal Gold Loan Mortgage Corp. (FGLMC):
6.000%, 06/01/2021		418		422
6.500%, 12/01/2028		9,074		10,195
6.500%, 06/01/2029		3,772		4,227
3.000%, 10/01/2030		23,277,438		24,950,493
3.000%, 02/01/2032		36,388,884		39,115,283
3.500%, 05/01/2032		17,023,531		18,408,368
3.000%, 07/01/2032		7,706,352		8,170,852
3.000%, 10/01/2032		5,767,459		6,116,592
3.000%, 11/01/2032		9,207,706		9,764,904
3.000%, 12/01/2032		9,813,354		10,408,755
3.000%, 01/01/2033		4,324,320		4,586,155
3.000%, 04/01/2033		4,668,932		4,951,149
3.500%, 01/01/2034		16,528,398		17,860,305
3.000%, 05/01/2035		13,414,379		14,148,921
3.000%, 10/01/2035		11,600,870		12,265,529
5.000%, 03/01/2036		3,368,019		3,914,124
5.500%, 04/01/2037		73,072		85,929
5.500%, 04/01/2038		45,483		53,434
5.500%, 05/01/2038		74,023		87,049
5.500%, 01/01/2039		12,094,035		14,119,754
4.500%, 11/01/2039		402,903		450,599
4.500%, 11/01/2039		1,382,097		1,545,626
4.500%, 08/01/2040		1,900,258		2,129,611
4.500%, 08/01/2040		1,376,206		1,540,290
4.000%, 10/01/2040		15,047,294		16,586,553
4.000%, 01/01/2041		9,885,196		10,847,064
3.500%, 06/01/2042		2,627,786		2,835,741
3.500%, 06/01/2042		3,995,914		4,299,933

The accompanying notes are an integral part of these financial statements.

Page 189

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Federal Gold Loan Mortgage Corp. (FGLMC): (cont.)
3.500%, 07/01/2042	$	14,919,945	$	16,045,545
3.500%, 07/01/2042		22,199,522		23,881,585
3.000%, 08/01/2042		13,425,856		14,242,591
3.500%, 09/01/2042		8,684,680		9,370,570
3.000%, 11/01/2042		37,182,815		40,367,981
3.500%, 12/01/2042		14,272,653		15,473,314
3.000%, 01/01/2043		24,073,424		25,603,049
3.000%, 02/01/2043		4,629,088		4,922,615
3.500%, 02/01/2043		11,424,311		12,548,658
3.000%, 03/01/2043		12,480,539		13,495,052
3.000%, 04/01/2043		9,402,111		10,207,778
3.000%, 04/01/2043		9,696,614		10,313,164
3.000%, 06/01/2043		7,788,471		8,284,754
3.000%, 08/01/2043		18,093,772		19,280,901
4.500%, 12/01/2043		7,802,756		8,726,665
3.500%, 05/01/2044		29,286,529		32,025,093
3.500%, 08/01/2044		13,826,257		14,949,954
3.500%, 08/01/2044		21,037,860		22,802,008
4.000%, 09/01/2044		7,689,906		8,380,245
4.000%, 10/01/2044		12,621,635		13,851,075
3.500%, 01/01/2045		17,098,574		18,585,033
4.000%, 02/01/2045		8,677,117		9,486,780
3.500%, 06/01/2045		18,352,779		20,069,850
3.500%, 07/01/2045		15,793,967		17,112,434
3.000%, 10/01/2045		23,665,690		25,175,969
4.000%, 10/01/2045		12,352,088		13,431,972
3.500%, 12/01/2045		14,784,988		15,821,261
4.000%, 12/01/2045		5,015,852		5,439,254
3.000%, 01/01/2046		69,713,566		76,096,073
3.500%, 01/01/2046		35,220,437		38,252,088
4.000%, 02/01/2046		6,776,912		7,342,148
4.000%, 02/01/2046		16,571,000		18,219,743
3.500%, 03/01/2046		4,811,749		5,223,456
4.000%, 05/01/2046		603,612		654,274
3.500%, 08/01/2046		57,814,855		63,156,425
4.000%, 08/01/2046		9,070,715		9,972,804
3.000%, 10/01/2046		52,165,082		56,157,392
3.000%, 10/01/2046		70,595,409		76,426,657
4.500%, 11/01/2046		52,533,361		58,921,652
4.000%, 01/01/2047		32,709,272		36,082,938
3.000%, 02/01/2047		29,179,011		31,435,930
3.000%, 05/01/2047		57,727,729		62,290,844
3.500%, 08/01/2047		17,209,561		18,702,675
3.500%, 03/01/2048		5,934,294		6,385,056

The accompanying notes are an integral part of these financial statements.

Page 190

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Federal Gold Loan Mortgage Corp. (FGLMC): (cont.)
4.000%, 06/01/2048	$	51,145,770	$	57,250,556
4.000%, 08/01/2048		21,519,336		23,308,919
3.000%, 12/01/2049		151,002,276		161,531,468
4.000%, 05/01/2050		104,685,780		115,425,211
3.000%, 06/01/2050		42,178,019		45,230,445
Federal Home Loan Mortgage Corp. (FHLMC):
Series 1053, Class G, 7.000%, 03/15/2021		70		70
Series 1122, Class G, 7.000%, 08/15/2021		265		269
Series 1186, Class I, 7.000%, 12/15/2021		1,001		1,020
Federal National Mortgage Association (FNMA):
5.000%, 11/01/2021		31		32
2.500%, 12/01/2027		8,363,549		8,741,946
5.000%, 05/01/2028		23,374		26,071
6.500%, 09/01/2028		6,835		7,657
6.500%, 02/01/2029		15,491		17,423
3.000%, 07/01/2029		12,072,583		12,689,561
4.500%, 07/01/2030		2,615,118		2,890,139
3.000%, 08/01/2030		17,995,844		19,210,210
3.000%, 01/01/2031		49,974,759		53,395,807
4.000%, 11/01/2031		12,264,289		13,393,403
3.500%, 01/01/2032		28,950,786		30,856,893
5.500%, 01/01/2032		6,151		7,070
2.500%, 07/01/2032		19,737,284		21,026,395
3.000%, 11/01/2032		5,790,256		6,097,450
2.500%, 12/01/2032		69,415,757		72,526,716
3.000%, 04/01/2033		9,978,841		10,547,466
3.000%, 05/01/2033		9,833,938		10,397,714
3.500%, 09/01/2033		48,429,822		53,203,094
5.000%, 09/01/2033		7,497,915		8,640,462
4.500%, 10/01/2033		15,814,498		17,485,989
3.000%, 11/01/2033		77,848,262		84,403,402
4.000%, 01/01/2034		8,747,968		9,553,953
5.500%, 04/01/2034		488,516		564,825
4.000%, 09/01/2034		12,312,362		13,443,787
5.500%, 09/01/2034		22,017		25,743
5.000%, 02/01/2035		8,503,526		9,828,043
5.000%, 02/01/2035		12,111,486		14,043,050
5.500%, 02/01/2035		19,319		22,652
5.000%, 04/01/2035		868,382		1,008,870
5.000%, 07/01/2035		2,501,485		2,905,804
5.000%, 02/01/2036		1,528,674		1,776,555
5.000%, 03/01/2036		704,490		818,743
5.500%, 04/01/2036		2,276,166		2,675,136
4.000%, 05/01/2037		40,995,668		44,299,259

The accompanying notes are an integral part of these financial statements.

Page 191

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Federal National Mortgage Association (FNMA): (cont.)
3.500%, 08/01/2037	$	24,521,573	$	26,248,248
2.500%, 04/01/2038		46,469,512		49,374,204
6.000%, 05/01/2038		3,719,907		4,394,722
4.500%, 04/01/2039		12,179,455		13,656,233
4.000%, 06/01/2039		8,022,151		8,820,956
5.000%, 06/01/2039		10,922,412		12,571,021
4.500%, 01/01/2040		2,485,443		2,746,617
4.500%, 01/01/2040		5,513,538		6,190,844
5.000%, 06/01/2040		8,588,753		9,906,058
4.000%, 08/01/2040		651,924		714,735
4.500%, 08/01/2040		2,970,691		3,332,655
4.500%, 08/01/2040		8,043,666		8,992,011
4.000%, 10/01/2040		1,162,400		1,274,745
4.000%, 11/01/2040		12,455,470		13,663,008
4.000%, 12/01/2040		3,025,244		3,396,486
3.500%, 01/01/2041		1,399,961		1,522,667
4.000%, 01/01/2041		2,637,902		2,892,538
3.500%, 02/01/2041		1,491,390		1,610,405
4.000%, 02/01/2041		256,347		280,991
4.500%, 02/01/2041		38,137,272		42,634,764
3.500%, 03/01/2041		9,973,329		10,768,671
4.000%, 03/01/2041		4,756,165		5,215,314
4.500%, 07/01/2041		3,602,638		4,045,343
3.500%, 09/01/2041		20,655,222		22,278,404
4.000%, 09/01/2041		1,948,320		2,130,302
3.500%, 11/01/2041		10,507,084		11,314,345
3.500%, 12/01/2041		1,967,563		2,122,713
4.000%, 12/01/2041		9,278,364		10,174,573
4.000%, 01/01/2042		17,444,056		19,131,050
4.500%, 01/01/2042		7,306,928		8,198,134
4.000%, 02/01/2042		15,722,751		17,250,679
3.000%, 04/01/2042		47,007,690		50,225,109
3.000%, 05/01/2042		2,396,344		2,541,339
3.500%, 05/01/2042		12,386,951		13,467,865
3.500%, 06/01/2042		4,429,935		4,800,121
3.500%, 07/01/2042		84,875,646		92,815,891
3.500%, 08/01/2042		7,990,308		8,689,970
3.500%, 09/01/2042		12,025,233		13,031,947
3.000%, 10/01/2042		14,580,464		15,945,389
3.000%, 03/01/2043		4,934,118		5,258,313
3.000%, 04/01/2043		1,649,560		1,758,262
3.000%, 05/01/2043		18,294,155		19,460,631
3.000%, 05/01/2043		6,076,782		6,595,642
3.500%, 05/01/2043		14,156,956		15,554,391

The accompanying notes are an integral part of these financial statements.

Page 192

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Federal National Mortgage Association (FNMA): (cont.)
3.000%, 06/01/2043	$	20,298,278	$	21,594,769
3.500%, 06/01/2043		7,172,439		7,960,654
3.000%, 07/01/2043		15,939,255		17,004,185
4.000%, 07/01/2043		21,661,315		23,798,829
3.000%, 08/01/2043		6,049,107		6,446,361
3.500%, 08/01/2043		7,224,445		7,886,832
3.500%, 09/01/2043		26,203,634		28,388,162
4.500%, 09/01/2043		11,310,823		12,683,334
4.000%, 01/01/2045		8,929,713		9,824,399
3.500%, 02/01/2045		34,986,801		37,886,859
4.000%, 02/01/2045		2,584,375		2,813,400
4.000%, 02/01/2045		10,206,204		11,179,004
4.000%, 02/01/2045		4,984,392		5,458,828
4.000%, 02/01/2045		15,151,109		16,697,581
4.000%, 03/01/2045		7,408,167		8,153,449
4.000%, 11/01/2045		29,284,742		31,817,562
3.500%, 12/01/2045		23,057,517		24,664,144
4.000%, 12/01/2045		37,153,306		40,301,926
4.000%, 12/01/2045		16,465,624		18,410,376
4.500%, 02/01/2046		21,030,534		23,583,146
4.500%, 08/01/2046		20,912,941		23,313,930
3.000%, 10/01/2046		21,733,361		23,467,386
3.500%, 11/01/2046		21,554,749		23,083,881
4.000%, 02/01/2047		12,777,866		13,819,851
4.000%, 03/01/2047		26,678,146		28,965,997
4.000%, 03/01/2047		21,982,614		24,244,428
4.000%, 10/01/2047		15,598,167		16,759,254
4.000%, 11/01/2047		9,563,243		10,270,892
3.500%, 12/01/2047		84,373,092		89,491,359
4.000%, 12/01/2047		48,209,439		51,716,557
3.000%, 01/01/2048		23,755,080		25,647,483
3.500%, 03/01/2048		14,272,527		15,123,468
3.500%, 05/01/2048		69,005,526		74,741,054
5.000%, 11/01/2048		27,596,598		31,375,552
3.500%, 06/01/2049		64,158,298		67,737,970
4.000%, 09/01/2049		7,594,741		8,146,761
3.500%, 01/01/2050		45,831,480		50,071,712
3.000%, 05/01/2050		134,433,258		146,387,717
2.500%, 12/01/2050(8)		90,589,253		96,563,279
Government National Mortgage Association (GNMA):
6.000%, 12/20/2028		11,330		12,880
6.500%, 01/20/2029		6,352		7,331
6.000%, 11/20/2033		8,549		9,917
5.000%, 07/20/2040		401,257		458,848

The accompanying notes are an integral part of these financial statements.

Page 193

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Government National Mortgage
Association (GNMA): (cont.)
4.000%, 01/20/2041	$	6,318,900	$	6,973,818
4.000%, 08/20/2041		3,704,105		4,094,782
3.500%, 10/20/2041		6,936,745		7,554,888
4.000%, 12/20/2041		4,880,092		5,392,619
4.000%, 02/20/2042		9,447,182		10,440,649
4.000%, 06/20/2042		7,953,951		8,796,876
3.500%, 09/20/2042		5,380,972		5,859,478
4.000%, 09/20/2044		27,309,575		30,137,902
3.000%, 04/20/2045		9,388,166		10,015,168
3.500%, 04/20/2045		13,127,928		14,095,837
4.000%, 05/20/2045		11,406,293		12,539,356
3.500%, 06/20/2045		12,971,347		13,964,838
3.500%, 10/20/2045		43,802,102		47,662,596
4.500%, 01/20/2046		10,856,421		12,093,235
4.000%, 04/20/2046		15,206,829		16,658,956
3.500%, 05/20/2046		59,772,548		64,712,503
4.000%, 05/20/2046		5,572,931		6,099,594
4.500%, 06/20/2047		17,001,832		18,496,878
4.500%, 07/20/2047		11,781,202		12,809,484
4.500%, 09/20/2047(6)		59,388,386		64,813,558
3.500%, 02/20/2048		32,711,318		35,048,836
Seasoned Credit Risk Transfer Trust:
Series 2019-4, Class MA, 3.000%, 02/25/2059		53,572,671		57,135,034
Series 2020-3, Class MT, 2.000%, 05/25/2060		40,226,888		41,437,573
Total U.S. Government Agency Issues
(Cost $4,206,966,721)				4,435,581,989		15.0	%
Non-U.S. Government Agency Issues
ABFC Trust,
Series 2006-OPT1, Class A3C2, 0.448%, 09/25/2036
(1 Month LIBOR USD + 0.300%)(3)		5,212,506		5,143,295
ACE Securities Corp. Home Equity Loan Trust,
Series 2006-OP1, Class A2C, 0.298%, 04/25/2036
(1 Month LIBOR USD + 0.150%)(3)		601,162		600,551
Alternative Loan Trust:
Series 2005-3CB, Class 2A1, 5.000%, 06/15/2021(6)		88,462		86,320
Series 2006-43CB, Class 2A1, 6.000%, 02/25/2022(6)		32,544		32,712
Series 2005-11CB, Class 2A6, 5.500%, 06/25/2025(6)		4,574,025		4,541,713
Series 2004-18CB, Class 1A1, 6.000%, 09/25/2034		2,985,529		3,083,318
Series 2005-6CB, Class 1A4, 5.500%, 04/25/2035(6)		11,236,785		10,996,483
Series 2005-29CB, Class A1, 5.500%, 07/25/2035(6)		1,908,527		1,585,208
Series 2005-49CB, Class A5, 5.500%, 11/25/2035(6)		1,904,813		1,716,424
Series 2005-73CB, Class 1A7, 5.500%, 01/25/2036(6)		294,907		296,522

The accompanying notes are an integral part of these financial statements.

Page 194

Baird Core Plus Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Alternative Loan Trust: (cont.)
Series 2005-85CB, Class 2A2, 5.500%, 02/25/2036(6)	$	2,555,827	$	2,467,969
Series 2006-28CB, Class A17, 6.000%, 10/25/2036(6)		429,052		313,386
AMRESCO Residential Securities
Corp. Mortgage Loan Trust,
Series 1998-2, Class A6, 6.405%, 12/25/2027		56		56
Argent Securities Inc. Asset-Backed
Pass-Through Certificates,
Series 2005-W5, Class A1, 0.618%, 01/25/2036
(1 Month LIBOR USD + 0.470%)(3)		24,922,195		24,672,776
Arroyo Mortgage Trust:
Series 2018-1, Class A1, 3.763%, 04/25/2048(2)(4)		3,247,429		3,295,472
Series 2019-3, Class A1, 2.962%, 10/25/2048(2)(4)		31,993,212		32,982,896
Asset Backed Securities Corp. Home Equity Loan Trust:
Series 2006-HE2, Class A1, 0.528%, 03/25/2036
(1 Month LIBOR USD + 0.380%)(3)(6)		10,241,958		10,154,070
Series 2006-HE6, Class A4, 0.308%, 11/25/2036
(1 Month LIBOR USD + 0.160%)(3)		295,022		291,528
Banc of America Alternative Loan Trust:
Series 2005-8, Class 5A1, 5.500%, 05/01/2021(6)		16,044		14,526
Series 2004-6, Class 4A1, 5.000%, 06/15/2021		236,866		243,009
Series 2007-1, Class 1A1, 4.520%, 04/25/2022(4)(6)		120,565		115,355
Series 2003-8, Class 1CB1, 5.500%, 10/25/2033		1,576,170		1,583,461
Series 2005-9, Class 1CB3, 5.500%, 10/25/2035(6)		26,987		26,822
Series 2005-9, Class 2CB1, 6.000%, 10/25/2035(6)		4,486,170		4,344,372
Series 2006-5, Class CB7, 6.000%, 06/25/2046(6)		167,631		163,148
Banc of America Funding Trust:
Series 2005-C, Class A1, 0.392%, 05/20/2035
(1 Month LIBOR USD + 0.240%)(3)		3,282,992		3,298,182
Series 2007-C, Class 1A3, 3.481%, 05/20/2036(4)(6)		1,600,709		1,576,930
Series 2006-G, Class 1A1, 0.532%, 07/20/2036
(1 Month LIBOR USD + 0.380%)(3)		23,051,948		22,634,535
Bayview Financial Trust,
Series 2007-B, Class 1A2, 6.831%, 08/28/2037(7)		80,743		80,455
Bear Stearns ARM Trust,
Series 2005-9, Class A1, 2.410%, 10/25/2035
(1 Year CMT Rate + 2.300%)(3)		402,936		403,174
Bear Stearns Asset Backed Securities I Trust:
Series 2005-HE4, Class M2, 1.108%, 04/25/2035
(1 Month LIBOR USD + 0.960%)(3)		2,887,982		2,886,975
Series 2006-HE8, Class 21A2, 0.318%, 07/25/2036
(1 Month LIBOR USD + 0.170%)(3)		2,439,520		2,431,129
BRAVO Residential Funding Trust,
Series 2020-RPL2, Class A1, 2.000%, 05/25/2059(2)(4)		42,101,047		43,360,222

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Carrington Mortgage Loan Trust,
Series 2005-NC1, Class M2, 0.928%, 02/26/2035
(1 Month LIBOR USD + 0.780%)(3)	$	585,909	$	593,046
Chase Mortgage Finance Trust:
Series 2005-A2, Class 1A5, 3.356%, 01/25/2036(4)		632,204		609,869
Series 2006-A1, Class 2A3, 3.259%, 09/25/2036(4)		458,863		418,679
Series 2007-A1, Class 2A3, 3.174%, 02/25/2037(4)		812,948		805,983
Series 2007-A1, Class 3A1, 3.562%, 02/25/2037(4)		2,146,467		2,193,860
CHL Mortgage Pass-Through Trust,
Series 2005-6, Class 2A1, 5.500%, 04/25/2035(6)		312,218		299,287
Citicorp Mortgage Securities Trust:
Series 2006-3, Class 1A4, 6.000%, 06/25/2036		3,574,907		3,636,886
Series 2007-2, Class 1A3, 6.000%, 02/25/2037(6)		1,026,703		1,037,868
Citicorp Residential Mortgage Trust,
Series 2007-1, Class A6, 5.702%, 03/25/2037(7)		8,178		8,410
Citigroup Mortgage Loan Trust,
Series 2018-RP2, Class A1, 3.500%, 02/25/2058(2)(4)		25,507,446		26,923,803
Citigroup Mortgage Loan Trust, Inc.:
Series 2006-AR1, Class 1A1, 3.880%, 10/25/2035
(1 Year CMT Rate + 2.400%)(3)		6,382,822		6,504,184
Series 2005-9, Class 22A2, 6.000%, 10/25/2035(6)		2,430,057		2,488,660
Series 2005-9, Class 2A2, 5.500%, 11/25/2035(6)		7,225		7,225
Series 2007-AMC4, Class A2C, 0.318%, 05/25/2037
(1 Month LIBOR USD + 0.170%)(3)		349,699		349,317
Countrywide Asset-Backed Certificates:
Series 2005-13, Class AF3, 5.430%, 02/25/2033(4)(6)		154,270		146,972
Series 2006-22, Class 2A3, 0.308%, 01/25/2034
(1 Month LIBOR USD + 0.160%)(3)		1,886,240		1,881,422
Series 2007-11, Class 2A3, 0.338%, 04/25/2034
(1 Month LIBOR USD + 0.190%)(3)		3,310,063		3,285,369
Series 2004-12, Class AF6, 4.634%, 03/25/2035(4)		591		594
Series 2005-10, Class AF6, 4.915%, 12/25/2035(4)		65,061		67,072
Series 2006-10, Class 1AF3, 5.971%, 12/25/2035(4)		351,093		337,139
Series 2007-9, Class 2A3, 0.328%, 06/25/2047
(1 Month LIBOR USD + 0.180%)(3)		11,563,346		11,503,954
Credit Suisse First Boston Mortgage Securities Corp.,
Series 2005-7, Class 3A1, 5.000%, 06/15/2021(6)		11,902		10,659
Credit-Based Asset Servicing & Securitization LLC,
Series 2007-CB4, Class A1A, 0.238%, 04/25/2037
(1 Month LIBOR USD + 0.090%)(3)		2,691,985		2,630,694
CWABS Asset-Backed Certificates Trust:
Series 2004-15, Class AF6, 4.613%, 04/25/2035(4)		853		858
Series 2005-7, Class AF6, 4.693%, 08/25/2035(4)		6,396		6,485
Series 2006-9, Class 1AF3, 5.859%, 08/25/2036(4)(6)		140,193		136,738
Series 2006-18, Class 2A2, 0.308%, 03/25/2037
(1 Month LIBOR USD + 0.160%)(3)		1,994,629		1,982,606

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Deutsche Alt-A Securities, Inc. Mortgage Loan Trust:
Series 2005-1, Class 1A1, 0.648%, 02/25/2035
(1 Month LIBOR USD + 0.500%)(3)	$	4,647,272	$	4,455,149
Series 2005-2, Class 1A7, 5.346%, 04/25/2035(4)		6,959,450		6,994,968
First Franklin Mortgage Loan Trust:
Series 2006-FF3, Class A2B, 0.548%, 02/25/2036
(1 Month LIBOR USD + 0.400%)(3)		2,430,705		2,427,416
Series 2006-FF6, Class A4, 0.648%, 04/25/2036
(1 Month LIBOR USD + 0.500%)(3)		18,761,439		18,499,466
First Horizon Alternative Mortgage Securities Trust:
Series 2006-FA6, Class 3A1, 5.750%, 11/25/2021		6,061		5,520
Series 2006-FA8, Class 2A1, 5.750%, 01/25/2022(6)		61,127		37,734
Series 2004-AA1, Class A1, 2.226%, 06/25/2034(4)		3,176,577		3,166,605
Series 2005-AA2, Class 2A1, 2.651%, 04/25/2035(4)		1,500,564		1,559,396
Fremont Home Loan Trust,
Series 2005-B, Class M4, 0.853%, 04/25/2035
(1 Month LIBOR USD + 0.705%)(3)		393,846		393,531
GE Capital Mortgage Services, Inc. Trust,
Series 1999-HE1, Class A7, 6.265%, 04/25/2029		40		41
GS Mortgage Securities Trust,
Series 2018-RPL1, Class A1A, 3.750%, 10/25/2057(2)		49,664,321		52,961,322
GSAA Home Equity Trust:
Series 2004-6, Class A1, 0.948%, 06/25/2034
(1 Month LIBOR USD + 0.800%)(3)		966,344		971,732
Series 2005-14, Class 1A1, 0.648%, 12/25/2035
(1 Month LIBOR USD + 0.500%)(3)		10,311,667		10,300,691
GSAMP Trust:
Series 2005-AHL2, Class A2C, 0.388%, 12/25/2035
(1 Month LIBOR USD + 0.240%)(3)		708,133		707,529
Series 2006-HE7, Class A2D, 0.378%, 10/25/2036
(1 Month LIBOR USD + 0.230%)(3)		736,927		727,081
GSR Mortgage Loan Trust:
Series 2004-15F, Class 5A1, 5.500%, 12/01/2021		21,644		21,504
Series 2005-3F, Class 2A4, 6.000%, 03/25/2035		1,944,132		1,997,816
Series 2005-AR2, Class 2A1, 3.678%, 04/25/2035(4)		2,182,921		2,124,621
Home Equity Asset Trust,
Series 2004-7, Class A1, 0.868%, 01/25/2035
(1 Month LIBOR USD + 0.720%)(3)		10,084,238		9,754,777
HomeBanc Mortgage Trust,
Series 2005-4, Class A1, 0.688%, 10/25/2035
(1 Month LIBOR USD + 0.540%)(3)		2,156,496		2,165,833
HSI Asset Securitization Corp. Trust,
Series 2006-OPT4, Class 2A3, 0.308%, 03/25/2036
(1 Month LIBOR USD + 0.160%)(3)		547,387		545,885

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
J.P. Morgan Alternative Loan Trust:
Series 2006-A1, Class 2A1, 3.524%, 03/25/2036(4)	$	61,343	$	57,404
Series 2007-S1, Class A1, 0.428%, 06/25/2037
(1 Month LIBOR USD + 0.280%)(3)		4,573,289		4,435,757
J.P. Morgan Mortgage Trust:
Series 2005-A8, Class 2A3, 2.896%, 11/25/2035(4)		3,845,159		3,632,088
Series 2006-A2, Class 3A3, 3.422%, 04/25/2036(4)(6)		1,123,127		1,006,101
Series 2006-A2, Class 2A1, 3.521%, 04/25/2036(4)		981,478		969,226
Series 2006-A7, Class 2A2, 3.116%, 01/25/2037(4)(6)		1,598,167		1,482,210
Series 2006-A7, Class 2A4R, 3.116%, 01/25/2037(4)(6)		1,634,614		1,516,013
Series 2007-A2, Class 2A3, 3.549%, 04/25/2037(4)(6)		3,200,438		2,899,549
Series 2007-A4, Class 2A3, 3.771%, 06/25/2037(4)(6)		3,519,330		3,091,377
Luminent Mortgage Trust,
Series 2005-1, Class A1, 0.668%, 11/25/2035
(1 Month LIBOR USD + 0.520%)(3)		5,862,240		5,656,005
MASTR Alternative Loan Trust:
Series 2004-2, Class 2A1, 6.000%, 02/25/2034		1,802,255		1,876,865
Series 2004-8, Class 2A1, 6.000%, 09/25/2034		1,271,489		1,314,641
Series 2005-6, Class 1A5, 5.500%, 12/25/2035(6)		1,863,410		1,706,938
MASTR Asset Backed Securities Trust,
Series 2006-NC1, Class A4, 0.748%, 01/25/2036
(1 Month LIBOR USD + 0.600%)(3)		133,682		133,661
Merrill Lynch Mortgage Investors Trust:
Series 2004-F, Class A1B, 0.768%, 12/25/2029
(1 Month LIBOR USD + 0.620%)(3)		4,661,511		4,580,943
Series 2005-A5, Class A3, 3.512%, 06/25/2035(4)		1,256,645		1,260,480
Mill City Mortgage Loan Trust:
Series 2018-2, Class A1, 3.500%, 05/25/2058(2)(4)		22,659,190		23,564,440
Series 2018-3, Class A1, 3.500%, 08/25/2058(2)(4)		14,156,027		14,933,025
Series 2019-1, Class A1, 3.250%, 10/25/2069(2)(4)		29,739,336		31,383,267
Morgan Stanley Capital I, Inc. Trust,
Series 2006-HE2, Class A1, 0.488%, 03/25/2036
(1 Month LIBOR USD + 0.340%)(3)		3,189,505		3,170,237
MortgageIT Trust:
Series 2005-4, Class A1, 0.708%, 10/25/2035
(1 Month LIBOR USD + 0.560%)(3)		2,493,304		2,531,024
Series 2005-5, Class A1, 0.668%, 12/25/2035
(1 Month LIBOR USD + 0.520%)(3)		2,751,090		2,749,843
New Residential Mortgage Loan Trust:
Series 2016-1A, Class A1, 3.750%, 03/25/2056(2)(4)		10,391,099		11,012,856
Series 2017-1A, Class A1, 4.000%, 02/25/2057(2)(4)		20,571,393		22,232,481
Series 2017-3A, Class A1, 4.000%, 04/25/2057(2)(4)		17,189,777		18,280,255
Series 2017-6A, Class A1, 4.000%, 08/25/2057(2)(4)		21,122,753		22,815,560
Series 2018-1A, Class A1A, 4.000%, 12/25/2057(2)(4)		11,006,834		11,902,302
Series 2019-RPL2, Class A1, 3.250%, 02/25/2059(2)(4)		26,194,415		27,757,771

The accompanying notes are an integral part of these financial statements.

Page 198

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
RALI Series Trust:
Series 2004-QS13, Class CB, 5.000%, 06/15/2021	$	3,495	$	3,475
Series 2005-QS5, Class A1, 0.548%, 04/25/2035
(1 Month LIBOR USD + 0.400%)(3)(6)		1,819,716		1,421,671
Series 2005-QS11, Class A2, 0.648%, 07/25/2035
(1 Month LIBOR USD + 0.500%)(3)(6)		3,192,261		2,354,571
Series 2005-QA7, Class A22, 3.490%, 07/25/2035(4)(6)		1,515,817		1,452,802
RAMP Series Trust,
Series 2002-RS3, Class AI5, 5.572%, 06/25/2032(4)		1,246,158		1,267,459
RASC Series Trust,
Series 2007-KS1, Class A3, 0.298%, 11/25/2036
(1 Month LIBOR USD + 0.150%)(3)		1,011,138		997,457
Renaissance Home Equity Loan Trust:
Series 2005-1, Class AF6, 4.970%, 05/25/2035(7)		8,451		8,877
Series 2005-2, Class AF6, 4.781%, 08/25/2035(7)		573,591		603,290
Series 2006-2, Class AF3, 5.797%, 08/25/2036(7)		15,212,058		8,663,472
Series 2006-3, Class AF2, 5.580%, 11/25/2036(7)		10,100,807		5,342,607
Series 2007-1, Class AF3, 5.612%, 04/25/2037(7)		278,136		113,415
Series 2007-2, Class AF2, 5.675%, 06/25/2037(7)		1,435,659		549,065
Soundview Home Loan Trust:
Series 2006-OPT4, Class 2A3, 0.448%, 06/25/2036
(1 Month LIBOR USD + 0.300%)(3)		489,661		489,158
Series 2006-EQ1, Class A3, 0.308%, 10/25/2036
(1 Month LIBOR USD + 0.160%)(3)		5,703,437		5,651,295
Specialty Underwriting & Residential Finance Trust,
Series 2004-BC4, Class A1A, 0.818%, 10/25/2035
(1 Month LIBOR USD + 0.670%)(3)		1,167,712		1,164,669
Starwood Mortgage Residential Trust,
Series 2020-3, Class A1, 1.486%, 04/25/2065(2)(4)		14,185,605		14,279,070
Structured Asset Securities Corp.:
Series 2003-31A, Class 2A7, 2.409%, 10/25/2033(4)		922,958		927,989
Series 2005-7XS, Class 1A4B, 5.940%, 04/25/2035(7)		7,823		8,143
Towd Point Mortgage Trust:
Series 2015-3, Class A1A, 3.500%, 03/25/2054(2)(4)		1,003,590		1,008,201
Series 2016-3, Class A1, 2.250%, 08/25/2055(2)(4)		40,313		40,695
Series 2016-2, Class A1, 3.000%, 08/25/2055(2)(4)		5,327,755		5,405,152
Series 2016-4, Class A1, 2.250%, 07/25/2056(2)(4)		7,000,070		7,108,266
Series 2017-1, Class A1, 2.750%, 10/25/2056(2)(4)		2,274,150		2,330,779
Series 2017-6, Class A1, 2.750%, 10/25/2057(2)(4)		23,971,107		24,680,269
Series 2018-6, Class A1A, 3.750%, 03/25/2058(2)(4)		19,307,195		20,350,284
Series 2019-1, Class A1, 3.750%, 03/25/2058(2)(4)		10,959,182		11,775,186
Series 2018-4, Class A1, 3.000%, 06/25/2058(2)(4)		38,308,291		40,654,758
Series 2019-4, Class A1, 2.900%, 10/25/2059(2)(4)		78,361,232		82,714,904
Series 2020-2, Class A1A, 1.636%, 04/25/2060(2)(4)		45,907,521		46,728,067
Series 2020-4, Class A1, 1.750%, 10/25/2060(2)		101,594,451		103,894,326

The accompanying notes are an integral part of these financial statements.

Page 199

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
WaMu Mortgage Pass-Through Certificates Trust:
Series 2004-CB3, Class 1A, 6.000%, 10/25/2034	$	1,361,821	$	1,408,601
Series 2004-CB3, Class 2A, 6.500%, 10/25/2034		2,468,628		2,585,397
Series 2005-3, Class 1CB3, 0.598%, 05/25/2035
(1 Month LIBOR USD + 0.450%)(3)(6)		4,426,212		3,604,103
Series 2005-6, Class 2A4, 5.500%, 08/25/2035(6)		4,292,985		4,250,195
Series 2007-HY3, Class 4A1, 3.410%, 08/25/2036(4)		9,589,752		9,585,468
Series 2006-AR10, Class 1A1, 3.014%, 09/25/2036(4)(6)		763,431		728,487
Wells Fargo Mortgage Backed Securities Trust:
Series 2006-AR14, Class 2A3, 2.771%, 10/25/2036(4)(6)		1,494,420		1,405,221
Series 2007-7, Class A49, 6.000%, 06/25/2037(6)		2,213,795		2,204,282
Total Non-U.S. Government Agency Issues
(Cost $1,001,644,569)				1,018,822,695		3.5	%
Total Residential Mortgage-Backed Securities
(Cost $5,208,611,290)				5,454,404,684		18.5	%
Commercial Mortgage-Backed Securities
U.S. Government Agency Issues
Fannie Mae REMIC Trust,
Series 2017-M4, Class A2, 2.584%, 12/25/2026(4)		30,550,000		33,515,492
Freddie Mac Multifamily Structured
Pass Through Certificates:
Series K029, Class A2, 3.320%, 02/25/2023		64,407,000		68,111,233
Series K725, Class A2, 3.002%, 01/25/2024		15,000,000		16,122,540
Series K037, Class A2, 3.490%, 01/25/2024		66,950,000		72,698,508
Series K038, Class A2, 3.389%, 03/25/2024		48,968,000		53,263,346
Series K048, Class A2, 3.284%, 06/25/2025(4)		59,391,000		66,119,056
Series K050, Class A2, 3.334%, 08/25/2025(4)		82,951,000		92,750,325
Series K734, Class A2, 3.208%, 02/25/2026		45,125,000		50,227,997
Series K061, Class A2, 3.347%, 11/25/2026(4)		57,140,000		65,225,287
Series K062, Class A2, 3.413%, 12/25/2026		13,903,000		15,940,165
Series K063, Class A2, 3.430%, 01/25/2027(4)		5,315,000		6,097,379
Series K064, Class A2, 3.224%, 03/25/2027		1,000,000		1,139,594
Series K065, Class A2, 3.243%, 04/25/2027		24,367,000		27,826,110
Series K072, Class A2, 3.444%, 12/25/2027		12,000,000		13,946,831
Series K074, Class A2, 3.600%, 01/25/2028		36,495,000		42,791,515
Series K077, Class A2, 3.850%, 05/25/2028(4)		46,199,000		55,068,575
Series K079, Class A2, 3.926%, 06/25/2028		63,251,000		75,851,934
Series K080, Class A2, 3.926%, 07/25/2028(4)		56,820,000		68,271,690
Series K158, Class A3, 3.900%, 10/25/2033(4)		18,777,000		23,356,393
Total U.S. Government Agency Issues
(Cost $775,762,754)				848,323,970		2.9	%

The accompanying notes are an integral part of these financial statements.

Page 200

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Non-U.S. Government Agency Issues
BANK:
Series 2017-BNK4, Class A4, 3.625%, 05/17/2050	$	30,037,000	$	34,323,562
Series 2017-BNK8, Class A4, 3.488%, 11/17/2050		69,721,751		79,559,204
Series 2017-BNK9, Class A4, 3.538%, 11/17/2054		32,737,000		37,520,776
Benchmark Mortgage Trust:
Series 2020-B19, Class A5, 1.850%, 09/17/2053		40,850,000		41,918,918
Series 2020-B21, Class A5, 1.978%, 12/17/2053		46,400,000		47,953,235
Citigroup Commercial Mortgage Trust:
Series 2014-GC19, Class A3, 3.753%, 03/12/2047		2,689,848		2,905,680
Series 2015-GC27, Class A5, 3.137%, 02/10/2048		50,189,111		54,415,295
Series 2015-GC29, Class A4, 3.192%, 04/10/2048		25,030,000		27,314,869
Series 2016-C2, Class A4, 2.832%, 08/12/2049		33,387,000		36,428,249
Series 2017-P8, Class A4, 3.465%, 09/16/2050		29,775,000		33,905,078
COMM Mortgage Trust:
Series 2012-CR1, Class A3, 3.391%, 05/17/2045		24,224,935		24,710,912
Series 2013-CR9, Class A3, 4.022%, 07/12/2045		26,979,223		28,946,381
Series 2012-CR2, Class A4, 3.147%, 08/17/2045		35,388,000		36,524,330
Series 2013-CR6, Class A4, 3.101%, 03/10/2046		14,680,000		15,220,055
Series 2013-CR10, Class A4, 4.210%, 08/10/2046(4)		11,500,000		12,479,645
Series 2014-CR18, Class A4, 3.550%, 07/17/2047		5,422,382		5,876,584
Series 2014-CR19, Class A5, 3.796%, 08/12/2047		33,800,000		37,301,166
Series 2014-CR20, Class ASB, 3.305%, 11/13/2047		22,744,914		23,826,521
Series 2015-LC19, Class A4, 3.183%, 02/10/2048		27,105,399		29,597,808
Series 2015-DC1, Class A5, 3.350%, 02/12/2048		23,390,000		25,626,028
DBJPM Mortgage Trust,
Series 2020-C9, Class A5, 1.926%, 08/15/2053		30,000,000		30,969,090
DBUBS Mortgage Trust,
Series 2011-LC3A, Class A4, 4.551%, 08/10/2044		1,163,294		1,168,382
GS Mortgage Securities Trust:
Series 2011-GC5, Class A4, 3.707%, 08/10/2044		17,357,789		17,434,610
Series 2012-GCJ9, Class A3, 2.773%, 11/13/2045		40,568,791		41,771,582
Series 2013-GC13, Class A4, 3.871%, 07/12/2046(4)		14,700,000		15,470,351
Series 2014-GC20, Class AAB, 3.655%, 04/12/2047		14,711,531		15,441,983
Series 2014-GC20, Class A5, 3.998%, 04/12/2047		9,959,000		10,840,136
J.P. Morgan Chase Commercial
Mortgage Securities Trust:
Series 2013-LC11, Class A5, 2.960%, 04/15/2046		31,025,000		32,504,682
Series 2013-LC11, Class A4, 2.694%, 04/17/2046		4,598,963		4,783,415
Series 2012-LC9, Class ASB, 2.437%, 12/17/2047		1,574,514		1,598,096
Series 2013-C10, Class ASB, 2.702%, 12/17/2047		9,464,899		9,655,670
JPMBB Commercial Mortgage Securities Trust:
Series 2013-C15, Class A4, 4.096%, 11/17/2045		6,948,764		7,528,477
Series 2013-C17, Class A3, 3.928%, 01/17/2047		8,714,507		9,250,680
Series 2014-C24, Class ASB, 3.368%, 11/18/2047		9,388,028		9,864,669

The accompanying notes are an integral part of these financial statements.

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Baird Core Plus Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
JPMBB Commercial Mortgage Securities Trust: (cont.)
Series 2014-C25, Class A5, 3.672%, 11/18/2047	$	45,697,000	$	50,357,326
Series 2015-C30, Class A5, 3.822%, 07/15/2048		42,110,000		47,548,511
Series 2016-C4, Class A3, 3.141%, 12/17/2049		29,133,000		32,408,642
JPMCC Commercial Mortgage Securities Trust,
Series 2017-JP7, Class A5, 3.454%, 09/16/2050		27,356,184		30,960,515
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2012-C5, Class A4, 3.176%, 08/17/2045		41,590,000		42,872,573
Series 2012-C6, Class A4, 2.858%, 11/15/2045		27,721,819		28,547,361
Series 2013-C10, Class A3, 3.967%, 07/17/2046(4)		39,931,311		42,427,664
Series 2013-C12, Class A3, 3.973%, 10/17/2046		13,728,391		14,573,583
Series 2014-C16, Class A5, 3.892%, 06/17/2047		35,020,000		38,098,927
Series 2015-C25, Class ASB, 3.383%, 10/19/2048		27,825,299		29,543,578
Series 2016-C30, Class A5, 2.860%, 09/17/2049		9,062,000		9,902,013
Wells Fargo Commercial Mortgage Trust:
Series 2015-C26, Class ASB, 2.991%, 02/15/2048		12,633,497		13,199,895
Series 2016-C35, Class ASB, 2.788%, 07/17/2048		11,425,000		12,055,478
Series 2016-BNK1, Class A3, 2.652%, 08/17/2049		7,952,000		8,597,749
Series 2017-C40, Class A4, 3.581%, 10/17/2050		38,250,000		43,601,779
Series 2017-C42, Class A4, 3.589%, 12/16/2050		52,370,521		60,146,837
Series 2017-RC1, Class A4, 3.631%, 01/15/2060		11,875,000		13,539,742
WFRBS Commercial Mortgage Trust:
Series 2013-C11, Class A5, 3.071%, 03/17/2045		14,324,000		14,961,189
Series 2012-C6, Class A4, 3.440%, 04/15/2045		18,191,189		18,401,998
Series 2013-C14, Class A4, 3.073%, 06/15/2046		37,078,000		38,968,425
Series 2013-C18, Class A4, 3.896%, 12/17/2046		20,847,465		22,297,627
Series 2014-C21, Class ASB, 3.393%, 08/16/2047		8,999,576		9,353,888
Series 2014-C24, Class A5, 3.607%, 11/18/2047		54,091,000		59,149,341
Series 2014-C23, Class ASB, 3.636%, 10/17/2057		8,069,206		8,497,859
Total Non-U.S. Government Agency Issues
(Cost $1,467,517,397)				1,534,648,619		5.2	%
Total Commercial Mortgage-Backed Securities
(Cost $2,243,280,151)				2,382,972,589		8.1	%
Asset Backed Securities
Citibank Credit Card Issuance Trust,
Series 2007-A3, Class A3, 6.150%, 06/15/2039		6,100,000		9,137,876
Conseco Financial Corp.:
Series 1998-3, Class A5, 6.220%, 03/01/2030		30,996		31,379
Series 1998-4, Class A5, 6.180%, 04/01/2030		22,056		22,474
Ford Credit Auto Owner Trust:
Series 2019-1, Class A, 3.520%, 07/15/2030(2)		29,300,000		31,955,172
Series 2018-1, Class A, 3.190%, 07/15/2031(2)		28,641,000		31,471,641
Oakwood Mortgage Investors, Inc.,
Series 1999-B, Class A3, 6.450%, 12/15/2023		5,309		5,466

The accompanying notes are an integral part of these financial statements.

Page 202

Baird Core Plus Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal					% of
	Amount		Value			Net Assets
PFS Financing Corp.,
Series 2018-D, Class A, 3.190%, 04/17/2023(2)	$	32,525,000	$	32,752,864
SoFi Consumer Loan Program LLC:
Series 2017-4, Class A, 2.500%, 06/25/2026(2)		939,394		942,894
Series 2017-5, Class A2, 2.780%, 09/25/2026(2)		8,317,282		8,380,820
Synchrony Card Funding LLC,
Series 2019-A1, Class A, 2.950%, 03/15/2025		16,745,000		17,283,029
Towd Point Mortgage Trust:
Series 2020-MH1, Class A1A, 2.184%, 02/25/2060(2)(4)		52,430,903		53,364,991
Series 2020-MH1, Class A1, 2.250%, 02/25/2060(2)(4)		38,079,453		38,730,063
Toyota Auto Loan Extended Note Trust:
Series 2019-1A, Class A, 2.560%, 11/25/2031(2)		62,085,050		66,301,066
Series 2020-1A, Class A, 1.350%, 05/25/2033(2)		42,408,000		43,666,970
World Financial Network Credit Card Master Trust,
Series 2016-A, Class A, 2.030%, 04/15/2025		20,102,000		20,253,067
Total Asset Backed Securities
(Cost $338,871,660)				354,299,772			1.2	%
Common Stock
	Shares
Industrials
Weatherford International PLC(1)		46,003		276,018
Total Common Stock
(Cost $3,790,590)				276,018			0.0	%
Total Long-Term Investments
(Cost $26,326,703,928)				28,359,558,904			96.2	%
Short-Term Investment
Money Market Mutual Fund
First American Government Obligations
Fund, Class U, 0.04%(5)		1,319,454,362		1,319,454,362
Total Short-Term Investment
(Cost $1,319,454,362)				1,319,454,362			4.5	%
Total Investments
(Cost $27,646,158,290)				29,679,013,266			100.7	%
Liabilities in Excess of Other Assets				(189,149,679	)		(0.7	)%
TOTAL NET ASSETS			$	29,489,863,587			100.0	%

Notes to Schedule of Investments

CMT – Constant Maturity Treasury

LIBOR – London Inter-bank Offered Rate

SOFR – Secured Overnight Financing Rate

SOFRINDX – Secured Overnight Financing Rate Index

(1) Foreign security.

The accompanying notes are an integral part of these financial statements.

Page 203

Baird Core Plus Bond Fund

Schedule of Investments, December 31, 2020

Notes to Schedule of Investments (cont.)

(2)	Security as defined in Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program. Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers. At December 31, 2020, the value of these securities total $5,713,026,639, which represents 19.37% of total net assets.
(3)	Variable rate security based on a reference index and spread. The rate reported is the rate in effect as of December 31, 2020.
(4)	Variable rate security. The coupon is based on an underlying pool of loans. The rate reported is the rate in effect as of December 31, 2020.
(5)	Seven-day yield.
(6)	Security that, on the last payment date, missed a partial principal or interest payment.
(7)	Step-up bond; the interest rate shown is the rate in effect as of December 31, 2020.
(8)	Security or a portion of the security purchased on a when-issued or delayed delivery basis.
(9)	Security in default.

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value.  These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability.  These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The accompanying notes are an integral part of these financial statements.

Page 204

Baird Core Plus Bond Fund

Summary of Fair Value Exposure at December 31, 2020 (cont.)

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Long-Term Investments
U.S. Treasury Securities	$	—	$	4,324,385,252	$	—	$	4,324,385,252
Other Government Related Securities		—		119,856,793		—		119,856,793
Corporate Bonds		—		15,361,676,188		—		15,361,676,188
Municipal Bonds		—		361,687,608		—		361,687,608
Residential Mortgage-Backed Securities –
U.S. Government Agency Issues		—		4,435,581,989		—		4,435,581,989
Residential Mortgage-Backed Securities –
Non-U.S. Government Agency Issues		—		1,018,822,695		—		1,018,822,695
Commercial Mortgage-Backed Securities –
U.S. Government Agency Issues		—		848,323,970		—		848,323,970
Commercial Mortgage-Backed Securities –
Non-U.S. Government Agency Issues		—		1,534,648,619		—		1,534,648,619
Asset Backed Securities		—		354,299,772		—		354,299,772
Common Stock		276,018		—		—		276,018
Total Long-Term Investments		276,018		28,359,282,886		—		28,359,558,904
Short-Term Investment
Money Market Mutual Fund		1,319,454,362		—		—		1,319,454,362
Total Short-Term Investment		1,319,454,362		—		—		1,319,454,362
Total Investments	$	1,319,730,380	$	28,359,282,886	$	—	$	29,679,013,266

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 205

2020 Municipal Bond Market Overview

(Unaudited)

Key Municipal Events of 2020

The COVID-19 challenges of 2020 were unexpected and unprecedented, but so was the speed and magnitude of the monetary and fiscal responses. The result was a year of significant volatility, yet a rewarding one for investors who stayed the course. Over the full year, tax-exempt rates fell sharply across the curve with short rates falling 93bps and long yields declining 68bps, steepening the curve. As the year began, no one could have known the challenges that would soon be faced. Municipal funds were benefiting from a record streak of weekly inflows, state and local tax revenues were rising with the economy in its eleventh year of expansion and municipalities were adding to an already healthy level of reserves. News broke in January of the COVID-19 virus in the State of Washington; by the end of February, seven states had confirmed cases and it was spreading rapidly. Trading activity in the municipal market initially froze as the lockdowns began, then a torrent of selling was unleashed and a liquidity crisis quickly emerged.

Not only did the record streak of fund inflows end (at 60 weeks), but record weekly outflows occurred as municipal funds lost $12.2B and $13.7B in just the last two weeks of March, each 3 times larger than any prior weekly redemption. The selling and lack of dealer support for the market drove tax-exempt yields to record highs relative to comparable maturity Treasuries. At the peak, 5yr AAA exempt yields were 900% of the 5yr Treasury yield. Ten-year AAA municipal yields rose 190 bps (to 2.88%) in the first three weeks of March. Credit spreads widened dramatically as well; the BBB to AAA spread gapped out 210bps (to +280bps) before peaking in mid-May. Never had a U.S. economic shock been so swift, deep and broad, affecting so many municipalities. Investors were questioning the ability of municipalities to withstand this crisis and meet their obligations. Not surprisingly, the heaviest redemptions occurred in the High Yield segment of the municipal market.

AAA Municipal Yields

Maturity	12/31/19	9/30/20	12/31/20	Q4	YTD
1	1.06%	0.13%	0.13%	0.00%	-0.93%
2	1.06%	0.15%	0.14%	-0.01%	-0.92%
3	1.07%	0.16%	0.14%	-0.02%	-0.93%
5	1.14%	0.29%	0.22%	-0.07%	-0.92%
7	1.25%	0.51%	0.37%	-0.14%	-0.88%
10	1.48%	0.84%	0.69%	-0.15%	-0.79%
30	2.15%	1.67%	1.47%	-0.20%	-0.68%

Sellers couldn’t know how rapid and coordinated the response would be from policymakers (the Fed, Congress and the Trump administration) who agreed to provide massive support to stabilize the market. On March 27th, the President signed the $2.2 trillion CARES Act which, along with other measures, offered substantial aid to nearly every sector of the municipal market. The goal was to cover COVID-19-related costs and help offset lost revenue. In addition, the establishment of the Municipal Liquidity Facility (MLF), which, for the first time ever, allowed the Fed to lend directly to states and other select municipalities. This facility, although used by just two municipalities (State of IL and NY MTA), most importantly offered investors the psychological support they were looking for. As the policymakers acted, AAA-rated municipal yields peaked on

Page 206

2020 Municipal Bond Market Overview

(Unaudited)

March 20th and opportunistic investors began to emerge, looking to capitalize on the incredible undervaluation that had been created in the downdraft. While the entire municipal market was “on sale,” the hardest-hit sectors, such as Healthcare, Higher Education and Transportation, offered some of the best values for risk-seeking investors. From a credit perspective, the further in time we moved away from the initial economic shutdowns, the better the news became on tax revenues. Rather than the steep tax losses states initially anticipated, average tax revenues through September were down just 1% YoY, with most states within a +/- 5% range of the prior year. Not surprisingly, the states most dependent upon tourism, such as Nevada (-15.9%), Hawaii (-12.5%) and Florida (-11.1%) saw the greatest revenue declines. Other states, however, fared much better, experiencing YoY increases in tax revenue, including Vermont (+15.1%), New Mexico (+12.1%) and Idaho (+10.3%). Cities and school districts, which are more reliant on property taxes, saw average revenues rise over 4% YoY thanks to a strong residential housing market in most regions.

Investor demand was impressive once fund inflows resumed. In fact, annual 2020 net inflows of $39.7B were the fourth highest on record, something that seemed nearly impossible amid the $47.5B of redemptions over a five-week period in March/April. Several records were established on the supply side as well. Total municipal supply of $500B in 2020 was a new record, as was October’s issuance of $80B just prior to the November elections. The heavy issuance was driven by a record $181B of taxable municipal issuance (36% of total). This was up from $83B in taxable supply in 2019, even exceeding the Build America Bond (BAB) issuance of 2010. While taxable municipal debt grew, tax-exempt issuance fell 6% YoY (to $317B), providing a favorable supply/demand backdrop for tax-paying investors.

Finally, the 2020 elections also provided drama. Given that Democrats have gained control of the Senate, the probability of at least modest tax changes, additional fiscal stimulus and perhaps even a federal infrastructure plan has increased. One surprise among the many state referendums was the defeat of an Illinois constitutional amendment to move from a flat tax to a graduated income tax which they estimated would boost tax revenues by $3B annually. This makes Illinois’ already difficult fiscal situation even more challenging. So far, the rating agencies have maintained the state’s ratings at the lowest investment grade level awaiting the next steps by the Governor and legislature.

Solid Q4 Returns Complement Surprisingly Strong Full-Year Results

The decline in rates in Q4, primarily among intermediate and long-term rates, added to the already strong full-year returns.  While short-term funds benefited from heavy inflows in 2020, performance among the longest maturities (6.25%) easily outperformed short maturities (2.83%) for the year. The Revenue sector outperformed other sectors in Q4, but GO’s edged them out for all of 2020. A similar pattern emerged within the credit spectrum where lower quality issues set the pace in Q4, but AAA’s, having held their value best during the economic lockdowns, outperformed lower-quality credits for the year.

Total Returns of Selected Barclays Municipal Indices and Subsectors

Bloomberg				Bloomberg
Barclays				Barclays
Index/Sector	Dec	Q4	2020	Quality	Dec	Q4	2020
Municipal Bond Index	0.61%	1.82%	5.21%	AAA	0.28%	1.22%	5.51%
General Obligation bonds	0.48%	1.51%	5.49%	AA	0.43%	1.47%	5.24%
Revenue bonds	0.71%	2.11%	5.31%	A	0.82%	2.37%	5.27%
Prerefunded bonds	0.07%	0.12%	2.76%	BBB	1.72%	3.53%	4.55%
Long maturities (22+ yrs.)	0.92%	3.02%	6.25%	High Yield	1.87%	4.51%	4.89%
Intermediate				HY, ex-
maturities (1 - 17 yrs.)	0.48%	1.33%	4.73%	Puerto Rico	1.87%	4.27%	4.02%
Short maturities (1 - 5 yrs.)	0.20%	0.33%	2.83%

Page 207

2020 Municipal Bond Market Overview

(Unaudited)

2021 Outlook and Opportunities

While the entire world is anxious to turn the calendar to a new year, for the municipal market the early part of 2021 will likely be a continuation of the trends from late 2020. COVID-19 will continue to preoccupy the news, but with a shifting focus to vaccine distribution rather than a spreading virus. Although it may be several months before economic activity returns to pre-pandemic levels, the powerful combination of monetary and fiscal measures, as well as pent-up consumer demand, especially for travel and entertainment, should provide strong economic growth in 2021. The economic recovery will boost tax revenues, allowing municipalities to rebound from the pandemic decline. The favorable supply/demand backdrop that has supported tax-exempt municipal prices – even richening them relative to taxables in Q4 – should keep valuations elevated. Supply estimates for the new year are unusually wide given uncertainty on rates and how much refunding activity may occur, but total supply could match or even exceed the $500B of 2020. Taxable municipal issuance will remain robust, once again comprising one-third or more of total supply. While the taxable market grows, a trend that may continue for many years, the amount of tax-exempt debt outstanding is expected to remain steady or even decline in 2021.  Demand remains strong even in the face of low nominal rates.  Clearly, demographics play an important role as more baby boomers retire. This secular trend should continue to provide ongoing support, even increasing demand if rates were to rise. While investors realize the income return going forward will be less than in recent years, the desire to preserve capital may take on even greater importance in their allocation decisions. Coincidentally, the majority of municipal fund flows in 2020 went into short-term funds.

Seeking opportunities to add value to a managed municipal portfolio/fund in 2021 will be more important than ever given the low starting yield levels. In addition to the always important bottom-up security selection process, four key strategic areas of focus will be: Carry, Credit, Compression and Curve. We define “carry” here as the additional yield that a managed portfolio offers relative to an unmanaged benchmark. Any yield advantage should prove helpful since over extended periods “income” is the dominant contributor to total return. Secondly, credit analysis will be critical as not all municipalities will recover at the same pace, or to the same extent. Credits will need to be evaluated based on not only their sustainability through this period, but also on how longer-term behaviors and trends may have changed as a result of the pandemic. A third strategic opportunity exists through the further compression, or narrowing, of credit spreads. Narrowing spreads can occur when fundamental credit strength improves, as we expect in 2021, and as demand for additional yield is sought by investors, which was evident in Q4. Municipal spreads have already recovered more than one-half of the widening of 2020, but there is room for further compression, particularly if the municipal market follows the lead of corporate credit spreads which are virtually back to pre-pandemic levels. The desire for carry and the expectation of further spread compression support a modest credit overweight in prudently managed and appropriately diversified portfolios. A fourth strategic opportunity to add value in 2021 will be by optimizing curve exposure, particularly the benefit of rolling down an upwardly sloping curve. At year end, there was 45 bps of slope between the 5 – 10yr segments of the municipal curve. The intermediate segment, especially the 8 – 9yr maturities, offers investors roughly 70 bps of roll return over a twelve-month period assuming the curve slope remains unchanged. For perspective, the roll benefit on AAA bonds in that portion of the curve roughly matches the starting yields of 0.69% - 0.77% for those same maturities. We expect every basis point to matter in 2021, so strategic positioning of portfolios will be especially important as we look to the new year.

Page 208

2020 Municipal Bond Market Overview

(Unaudited)

Disclosures

Fixed income is generally considered to be a more conservative investment than stocks, but bonds and other fixed income investments still carry a variety of risks such as interest rate risk, credit risk, inflation risk, and liquidity risk. In a rising interest rate environment, the value of fixed-income securities generally decline and conversely, in a falling interest rate environment, the value of fixed-income securities generally increase. High yield securities may be subject to heightened market, interest rate or credit risk and should not be purchased solely because of the stated yield.

The Bloomberg Barclays Municipal Bond Index is a broad-based, total-return index.  The bonds are all investment-grade, tax-exempt, and fixed-rate securities with long-term maturities (greater than 2 years).  They are selected from issues larger than $50 million. The components listed below the Municipal Bond Index (long maturities, intermediate maturities, short maturities, prefunded bonds, general obligation bonds and revenue bonds) are subsectors of the Bloomberg Barclays Municipal Bond Index and do not represent separate indices.

The Bloomberg Barclays High Yield Municipal Index includes bonds with a par value of at least $3 million and must be issued as part of a transaction of at least $20 million.  The maximum rating for inclusion is Ba1/BB+/BB+ using the middle rating.

For more information about the Bloomberg Barclays Municipal Bond Index or Bloomberg Barclays High Yield Municipal Index, please visit https://index.barcap.com/Home/Guides_and_Factsheets.

Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates. The alternative minimum tax (AMT) may be applicable, even for securities identified as tax exempt. Past performance is not a guarantee of future results.

Ratings are measured on a scale that ranges from AAA or Aaa (highest) to D or C (lowest). Investment grade investments are those rated from highest down to BBB- or Baa3.

Robert W. Baird & Co. Incorporated. This is not a complete analysis of every material fact regarding any company, industry or security. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy. Indices are unmanaged, and are not available for direct investment. Past performance is not a guarantee of future results.

Page 209

Baird Short-Term Municipal Bond Fund

December 31, 2020 (Unaudited)

The Baird Short-Term Municipal Bond Fund seeks current income that is exempt from federal income tax and is consistent with the preservation of capital.

The coronavirus (COVID-19) challenges of 2020 were unexpected and unprecedented, but so was the speed and magnitude of the monetary and fiscal responses. The result was a year of significant volatility, yet a rewarding one for Fund investors who stayed the course. Over the full year, tax-exempt rates fell sharply across the curve with short rates falling 93 bps and long yields declining 68 bps, steepening the curve. As the year began, no one could have known the challenges that would soon be faced. Municipal funds were benefiting from a record streak of weekly inflows, state and local tax revenues were generally rising with the economy in its eleventh year of expansion and many municipalities were adding to an already healthy level of reserves. News broke in January of the COVID-19 in the State of Washington; by the end of February, seven states had confirmed cases and it was spreading rapidly. Trading activity in the municipal market initially froze as the lockdowns began, then a torrent of selling was unleashed and a liquidity crisis quickly emerged. The selling and lack of dealer support for the market drove tax-exempt yields to record highs relative to comparable maturity Treasuries. Never had a U.S. economic shock been so swift, deep and broad, affecting so many municipalities. Investors were questioning the ability of municipalities to withstand this crisis and meet their obligations. On March 27th, President Trump signed the $2.2 trillion CARES Act which, along with other measures, offered substantial aid to nearly every sector of the municipal market. In addition, the establishment of the Municipal Liquidity Facility (MLF), which, for the first time ever, allowed the Fed to lend directly to states and other select municipalities, offered investors the psychological support they were looking for. As the policymakers acted, AAA-rated municipal yields peaked on March 20th and opportunistic investors began to emerge, looking to capitalize on the incredible undervaluation that had been created in the downdraft. From a credit perspective, the further in time we moved away from the initial economic shutdowns, the better the news became on tax revenues.

During 2020, the Fund’s Institutional Class Shares generated strong absolute and relative returns and outperformed its benchmark by 42 basis points net of fees.

The primary factors contributing to the Fund’s absolute and relative performance in 2020 include:

Contributors to Performance

• Credit sector – added to lower-quality issues as valuations became more attractive

• Security selection – provided consistent return throughout the year

• Curve allocation – especially the 5+ year allocation

• Sector weighting – particularly Transportation and Housing

Detractors from Performance

• Allocation to below investment grade and non-rated issues

• Allocation to the Education sector

Although the COVID-19 vaccinations have begun, we expect the economic impact of the COVID-19 to linger well into 2021, particularly as it relates to travel and entertainment. Yet, with the massive fiscal stimulus that is already in the pipeline, and perhaps more coming now that the Democratic Party has full, albeit narrow, control of Washington, above-average economic growth is very likely this year.  This should boost state and local tax revenues helping municipalities recover from the pandemic-induced decline. With short-term rates anchored by the Fed, a steeper yield curve is likely, which provides the opportunity for investors to capture the roll-down benefit as bonds age along a relatively steep curve. We expect the roll-down return to be an important component of total return this year, along with the yield advantage the Fund enjoys above that of its benchmark. Municipal credit spreads have room to narrow further, suggesting a modest credit overweight is appropriate. Strategic positioning across market sectors and the yield curve, a continued focus on credit to identify improving trends, plus the always-important security selection process will all be important to navigate through the current environment.

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We expect the Fund will maintain a neutral duration posture relative to the benchmark with an allocation that seeks to optimize the roll-down benefit of a steep, upwardly-sloping municipal curve and its sector weightings will favor an overweight to revenue-backed issues over general obligation debt. We believe a modestly overweight credit posture is appropriate for the Fund to benefit from further economic recovery. We also believe our continued focus on selecting investments with strong fundamental tax and revenue support remains critical.

Page 211

Baird Short-Term Municipal Bond Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

Quality Distribution⁽¹⁾⁽²⁾

	Net Assets	$1,612,211,734
	SEC 30-Day
	Yield(4)
	Institutional Class	0.78%
	Investor Class	0.53%
	Average
	Effective
	Duration	2.24 years
	Average
	Effective
	Maturity	2.53 years
	Annualized
Sector Weightings(1)	Expense
	Ratio(5)
	Institutional Class	0.30%
	Investor Class	0.55%	(6)
	Portfolio
	Turnover Rate	32%
	Number of
	Holdings	1,901

(1)	Percentages shown are based on the Fund’s total investments.
(2)	The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO).  NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest).
(3)	Includes pre-refunded and escrowed-to-maturity (ETM) bonds.
(4)	SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2020.
(5)	Reflects expense ratios as stated in the Fund’s current prospectus.
(6)	Includes 0.25% 12b-1 fee.

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Baird Short-Term Municipal Bond Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on the Fund’s inception date (08/31/15), assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on the Fund’s inception date (08/31/15), assuming reinvestment of all distributions.

Page 213

Baird Short-Term Municipal Bond Fund

December 31, 2020 (Unaudited)

Total Returns

		Average Annual
	One	Three	Five	Since
For the Periods Ended December 31, 2020	Year	Years	Years	Inception(1)
Institutional Class Shares	3.25%	2.98%	2.50%	2.52%
Investor Class Shares	2.90%	2.74%	2.21%	2.23%
Bloomberg Barclays Short
(1-5 Year) Municipal Index(2)	2.83%	2.75%	1.98%	1.93%

(1)

For the period from August 31, 2015 (inception date) through December 31, 2020.

(2)

The Bloomberg Barclays Short (1-5 Year) Municipal Bond Index is an unmanaged, market value weighted index that measures the performance of investment-grade, tax-exempt, and fixed-rated municipal securities with time to maturity of more than one year and less than five years. Securities must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million.  The bonds must be fixed rate, have a dated-date after December 31, 1990, and must be at least one year from their maturity date.  This Index does not reflect any deduction for fees, expenses or taxes. A direct investment in an index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund may invest up to 10% of its net assets in non-investment grade debt securities (commonly referred to as “high yield” bonds). While these types of debt securities typically offer higher yields than investment grade securities, they also include greater risks including increased credit risk and the increased risk of default or bankruptcy.  The Fund may invest up to 25% of its total assets in municipal obligations issued by persons in the same state.  As a result, changes in economic, business or political conditions of a particular state may have a disproportionate impact on the Fund’s share price. Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com.  Mutual fund performance changes over time and current performance may be lower or higher than that stated.

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Schedule of Investments, December 31, 2020

Long-Term Investments

	Principal				% of
	Amount		Value		Net Assets
Municipal Bonds
Alabama
Alabama Community College System,
3.500%, 11/01/2023 (Insured by BAM)	$	1,050,000	$	1,132,729
Alabama Housing Finance Authority,
1.500%, 11/01/2022
(Mandatory Tender Date 05/01/2022)(1)		775,000		785,827
Alabama Incentives Financing Authority,
5.000%, 09/01/2023		650,000		725,731
Alabama Public School and College Authority,
5.000%, 11/01/2027		5,000,000		6,510,400
Alabama Special Care Facilities Financing Authority,
1.850%, 11/15/2046
(Mandatory Tender Date 11/01/2022)(1)		340,000		349,445
Birmingham Airport Authority:
5.000%, 07/01/2024 (Insured by BAM)		190,000		217,932
5.000%, 07/01/2025 (Insured by BAM)		500,000		593,410
5.000%, 07/01/2026 (Insured by BAM)		450,000		549,571
Birmingham-Jefferson Civic Center Authority:
5.000%, 05/01/2024		430,000		482,254
5.000%, 05/01/2026		500,000		594,395
Black Belt Energy Gas District:
4.000%, 04/01/2026		370,000		431,953
4.000%, 07/01/2046 (Callable 03/01/2021)
(Mandatory Tender Date 06/01/2021)(1)		1,470,000		1,487,272
4.000%, 08/01/2047 (Callable 04/01/2022)
(Mandatory Tender Date 07/01/2022)(1)		795,000		834,917
0.996%, 12/01/2048
(1 Month LIBOR USD + 0.900%) (Callable 09/01/2023)
(Mandatory Tender Date 12/01/2023)(2)		1,705,000		1,708,393
Calera Waterworks Board,
2.400%, 02/01/2026 (Callable 02/01/2021)		485,000		485,456
Chilton County Health Care Authority:
3.000%, 11/01/2021		560,000		570,164
5.000%, 11/01/2024		825,000		957,932
City of Hartselle AL:
2.000%, 06/01/2024 (Insured by BAM)		120,000		125,058
2.000%, 06/01/2025 (Insured by BAM)		225,000		236,891
2.000%, 06/01/2026 (Insured by BAM)		225,000		238,709
2.000%, 06/01/2027 (Insured by BAM)		1,455,000		1,548,266
City of Opelika AL,
3.000%, 10/01/2022		445,000		463,049
City of Phenix AL:
3.000%, 08/15/2021 (Insured by BAM)		385,000		389,963
3.000%, 08/15/2022 (Insured by BAM)		500,000		516,345
3.000%, 08/15/2023 (Insured by BAM)		100,000		105,217

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
County of Jefferson AL,
0.000%, 10/01/2025
(Callable 10/01/2023) (Insured by AGM)	$	750,000	$	683,670
County of Morgan AL:
3.000%, 04/01/2022		135,000		138,484
4.000%, 04/01/2023		210,000		225,643
4.000%, 04/01/2024		220,000		243,413
Douglas Water Authority,
3.000%, 07/01/2024 (Insured by AGM)		270,000		291,414
Eutaw Industrial Development Board,
0.060%, 06/01/2028 (Optional Put Date 01/04/2021)(1)		800,000		800,000
Greenville Public Improvement Cooperative District:
4.000%, 03/01/2022 (Insured by BAM)		25,000		25,995
4.000%, 03/01/2023 (Insured by BAM)		100,000		107,223
5.000%, 03/01/2024 (Insured by BAM)		140,000		159,075
Jasper Water Works & Sewer Board, Inc.,
5.000%, 06/01/2024 (Callable 06/01/2021)		100,000		101,965
Lauderdale County Agriculture Center Authority:
2.000%, 07/01/2022		450,000		456,367
5.000%, 07/01/2024		495,000		563,909
5.000%, 07/01/2025 (Callable 07/01/2024)		490,000		555,974
5.000%, 07/01/2026 (Callable 07/01/2024)		545,000		616,079
5.000%, 07/01/2027 (Callable 07/01/2024)		570,000		640,777
5.000%, 07/01/2028 (Callable 07/01/2024)		600,000		670,668
Macon County Board of Education,
3.250%, 02/01/2026 (Callable 02/01/2023)		375,000		390,784
Mobile County Board of School Commissioners,
5.000%, 03/01/2023		875,000		956,707
Montgomery Waterworks & Sanitation,
5.000%, 03/01/2025 (Pre-refunded to 03/01/2022)		150,000		158,395
Morgan County Board of Education:
2.500%, 03/01/2025 (Pre-refunded to 03/01/2022)		1,165,000		1,195,092
2.700%, 03/01/2027 (Pre-refunded to 03/01/2022)		865,000		889,332
Pickens County Water Authority:
3.000%, 01/01/2021 (Insured by BAM)		145,000		145,000
3.000%, 01/01/2022 (Insured by BAM)		145,000		148,238
3.000%, 01/01/2023 (Insured by BAM)		155,000		161,747
3.000%, 01/01/2024 (Insured by BAM)		100,000		106,240
3.000%, 01/01/2025 (Insured by BAM)		160,000		172,874
Selma Industrial Development Board,
2.000%, 11/01/2033
(Mandatory Tender Date 10/01/2024)(1)		750,000		792,480

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Southeast Alabama Gas Supply District:
0.720%, 04/01/2049
(SIFMA Municipal Swap Index + 0.650%)
(Callable 01/01/2024)
(Mandatory Tender Date 04/01/2024)(2)	$	2,000,000	$	2,002,780
0.996%, 04/01/2049
(1 Month LIBOR USD + 0.900%) (Callable 01/01/2024)
(Mandatory Tender Date 04/01/2024)(2)		750,000		750,218
Tallassee Board of Education:
4.000%, 08/01/2027 (Insured by AGM)		360,000		430,704
4.000%, 08/01/2028 (Insured by AGM)		405,000		491,771
Town of Berry AL,
3.250%, 09/01/2028
(Callable 09/01/2026) (Insured by AGM)		930,000		1,006,065
West Escambia Utilities, Inc.,
2.400%, 08/15/2025
(Callable 08/15/2022) (Insured by BAM)		760,000		779,160
Total Alabama
(Cost $38,279,821)				38,899,522		2.4	%
Alaska
Alaska Housing Finance Corp.:
3.750%, 12/01/2042 (Callable 06/01/2028)		8,550,000		9,621,913
4.000%, 12/01/2048 (Callable 06/01/2027)		1,170,000		1,301,485
Alaska Industrial Development & Export Authority:
5.000%, 10/01/2022		550,000		591,294
5.000%, 10/01/2023		600,000		672,396
Borough of Matanuska-Susitna AK,
5.250%, 09/01/2027 (Callable 09/01/2025)		5,590,000		6,600,393
University of Alaska:
5.000%, 10/01/2024		765,000		858,200
4.000%, 10/01/2025		330,000		364,198
4.000%, 10/01/2026 (Callable 10/01/2023)		1,400,000		1,486,506
5.000%, 10/01/2026		865,000		1,015,181
Total Alaska
(Cost $21,783,604)				22,511,566		1.4	%
Arizona
Arizona Health Facilities Authority,
1.920%, 02/01/2048
(SIFMA Municipal Swap Index + 1.850%)
(Callable 08/05/2022)
(Mandatory Tender Date 02/01/2023)(2)		200,000		203,528
Arizona Industrial Development Authority:
3.375%, 07/01/2021(3)		110,000		110,731
4.000%, 07/01/2021 (Insured by SD CRED PROG)		165,000		167,384

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Arizona Industrial Development Authority: (cont.)
2.500%, 05/01/2022 (Insured by AGM)(3)	$	6,135,557	$	6,177,033
4.000%, 05/01/2022		300,000		302,103
3.000%, 07/01/2022(3)		50,000		50,480
5.000%, 02/01/2023		1,000,000		1,093,590
4.000%, 08/01/2023(3)		705,000		723,196
5.000%, 05/01/2025		405,000		428,389
4.625%, 08/01/2028(3)		375,000		408,308
Arizona State University,
5.000%, 07/01/2032 (Pre-refunded to 07/01/2022)		885,000		947,437
Chandler Industrial Development Authority,
2.400%, 12/01/2035
(Mandatory Tender Date 08/14/2023)(1)		265,000		278,666
City of Tucson AZ,
5.000%, 07/01/2026 (Insured by AGM)		500,000		615,160
Glendale Industrial Development Authority:
5.250%, 05/15/2021		500,000		508,405
5.250%, 05/15/2022		550,000		584,612
4.000%, 05/15/2026 (Callable 05/15/2024)		185,000		200,490
Industrial Development Authority of the County of Pima:
4.000%, 07/01/2021		245,000		248,178
4.000%, 07/01/2022		105,000		108,645
4.000%, 07/01/2023		265,000		282,408
La Paz County Industrial Development Authority,
5.000%, 02/15/2021(3)		100,000		100,426
Maricopa County Industrial Development Authority:
2.625%, 07/01/2021		20,000		20,014
4.000%, 07/01/2024 (Insured by SD CRED PROG)		135,000		150,155
5.000%, 01/01/2048
(Mandatory Tender Date 10/18/2024)(1)		1,050,000		1,228,794
Salt Verde Financial Corp.,
5.250%, 12/01/2026		2,500,000		3,090,000
Santa Cruz County Jail District,
5.000%, 07/01/2029
(Callable 07/01/2027) (Insured by AGM)		150,000		187,794
Total Arizona
(Cost $17,869,603)				18,215,926		1.1	%
Arkansas
Arkansas Technical University,
4.000%, 06/01/2026 (Callable 06/01/2023)		200,000		213,118
Batesville Public Facilities Board:
5.000%, 06/01/2024		1,000,000		1,086,760
5.000%, 06/01/2025		1,385,000		1,530,550
5.000%, 06/01/2026		850,000		952,943

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Carroll-Boone Water District,
4.000%, 12/01/2026 (Callable 12/01/2025)	$	735,000	$	838,775
City of Conway AR,
4.000%, 12/01/2023 (Callable 06/01/2022)		35,000		36,730
City of Fayetteville AR:
1.750%, 11/01/2032 (Callable 11/01/2026)		2,500,000		2,546,175
3.050%, 01/01/2047 (Callable 01/01/2027)		615,000		638,862
City of Heber Springs AR:
3.000%, 11/01/2021 (Insured by BAM)		55,000		56,251
3.000%, 11/01/2022 (Insured by BAM)		50,000		52,498
3.000%, 11/01/2023 (Insured by BAM)		40,000		42,605
City of Hot Springs AR:
3.000%, 10/01/2023 (Insured by BAM)		510,000		543,997
3.000%, 10/01/2024 (Insured by BAM)		1,110,000		1,208,024
4.000%, 12/01/2027
(Callable 12/01/2023) (Insured by BAM)		255,000		279,694
City of Jacksonville AR,
4.000%, 12/01/2025 (Pre-refunded to 06/01/2021)		110,000		111,694
City of Little Rock AR:
3.000%, 10/01/2021		100,000		102,081
2.375%, 04/01/2028 (Callable 10/01/2022)		130,000		131,645
City of Lonoke AR,
5.000%, 06/01/2023		160,000		177,533
City of Magnolia AR,
2.600%, 08/01/2036
(Callable 08/01/2024) (Insured by BAM)		420,000		422,482
City of Marion AR,
2.900%, 09/01/2047 (Callable 09/01/2027)		205,000		209,170
City of Maumelle AR,
2.875%, 08/01/2038 (Callable 08/01/2025)		485,000		493,691
City of Mountain View AR,
1.375%, 11/01/2050
(Callable 11/01/2027) (Insured by BAM)		885,000		893,284
City of North Little Rock AR:
5.000%, 11/01/2021		310,000		321,482
5.000%, 11/01/2024		305,000		355,151
5.000%, 11/01/2025		510,000		613,943
5.000%, 11/01/2026		535,000		661,512
City of Pine Bluff AR,
3.000%, 02/01/2047
(Callable 08/01/2027) (Insured by BAM)		510,000		546,067
City of Rogers AR,
3.250%, 11/01/2043 (Callable 11/01/2026)		1,485,000		1,569,511
City of Sherwood AR,
3.050%, 12/01/2043 (Callable 12/01/2026)		275,000		287,925

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Springdale AR:
5.000%, 11/01/2025 (Pre-refunded to 11/01/2022)	$	150,000	$	162,916
3.000%, 04/01/2043
(Callable 04/01/2024) (Insured by BAM)		595,000		610,512
Conway Health Facilities Board:
5.000%, 08/01/2021		450,000		460,634
5.000%, 08/01/2023		500,000		553,345
5.000%, 08/01/2024		410,000		470,274
County of Cross AR,
2.250%, 10/01/2030 (Callable 10/01/2024)		1,525,000		1,592,542
Dumas Arkansas School District No. 6:
1.400%, 02/01/2022 (Insured by ST AID)		235,000		237,790
1.450%, 02/01/2023
(Callable 08/01/2022) (Insured by ST AID)		245,000		248,758
1.500%, 02/01/2024
(Callable 08/01/2022) (Insured by ST AID)		245,000		248,790
Jackson County Special School District,
1.500%, 02/01/2022 (Insured by ST AID)		175,000		177,264
Lonoke White Public Water Authority,
3.000%, 12/01/2022 (Insured by BAM)		100,000		104,152
National Park College District:
3.000%, 05/01/2021		210,000		211,667
3.000%, 05/01/2022		115,000		118,536
3.000%, 05/01/2023		65,000		68,368
Northwest Arkansas Conservation Authority,
4.000%, 03/01/2024
(Callable 09/01/2022) (Insured by BAM)		375,000		397,046
Pulaski County Special School District,
3.250%, 02/01/2029
(Pre-refunded to 02/01/2021) (Insured by ST AID)		50,000		50,104
Southern Arkansas University:
4.000%, 03/01/2023 (Insured by AGM)		465,000		499,317
4.000%, 03/01/2023 (Insured by AGM)		235,000		251,817
4.000%, 03/01/2024 (Insured by AGM)		245,000		271,227
4.000%, 03/01/2024 (Insured by AGM)		175,000		193,154
Van Buren School District No. 42:
2.000%, 04/01/2022 (Insured by ST AID)		250,000		255,282
2.000%, 04/01/2024 (Insured by ST AID)		130,000		135,519
Total Arkansas
(Cost $23,601,509)				24,243,167		1.5	%
California
Allan Hancock Joint Community College District,
0.000%, 08/01/2036 (Pre-refunded to 08/01/2022)		225,000		103,604

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
American Valley Community Services District,
1.500%, 11/01/2023 (Callable 11/01/2022)(3)	$	13,068,000	$	13,257,747
Bay Area Toll Authority:
0.716%, 04/01/2045
(3 Month LIBOR USD + 0.550%)
(Callable 02/01/2021)
(Mandatory Tender Date 04/01/2021)(2)		500,000		500,040
0.970%, 04/01/2045
(SIFMA Municipal Swap Index + 0.900%)
(Callable 11/01/2022)
(Mandatory Tender Date 05/01/2023)(2)		100,000		100,721
Beaumont Unified School District,
0.000%, 08/01/2041
(Pre-refunded to 08/01/2026) (Insured by AGM)(7)		160,000		211,947
California Health Facilities Financing Authority,
3.000%, 03/01/2041 (Callable 09/01/2023)
(Mandatory Tender Date 03/01/2024)(1)		4,100,000		4,349,608
California Infrastructure & Economic Development Bank:
0.478%, 08/01/2047
(1 Month LIBOR USD + 0.380%) (Callable 02/01/2021)
(Mandatory Tender Date 08/01/2021)(2)		150,000		149,985
1.750%, 08/01/2055 (Callable 02/01/2026)
(Mandatory Tender Date 08/01/2026)(1)		1,000,000		1,020,170
California Municipal Finance Authority:
5.000%, 08/01/2021		400,000		404,176
5.000%, 08/01/2021		610,000		619,266
5.000%, 08/01/2022		400,000		410,944
5.000%, 08/01/2022		640,000		665,715
5.000%, 08/01/2023		670,000		712,324
California State University,
4.000%, 11/01/2049 (Callable 05/01/2021)
(Mandatory Tender Date 11/01/2021)(1)		75,000		75,834
California Statewide Communities Development Authority:
6.000%, 01/01/2021 (ETM)		85,000		85,000
3.500%, 11/01/2021
(Callable 02/01/2021) (Insured by CA MTG)		55,000		55,678
3.000%, 07/01/2026
(Callable 02/01/2021) (Insured by CA MTG)		625,000		626,112
Campbell Union School District,
0.000%, 08/01/2035 (Callable 08/01/2026)(7)		775,000		946,624
Centinela Valley Union High School District,
0.000%, 08/01/2037
(Callable 08/01/2022) (Insured by AGM)		370,000		153,439
Central School District,
0.000%, 08/01/2051 (Callable 08/01/2022)		400,000		67,924

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City & County of San Francisco CA,
1.300%, 07/01/2023
(Mandatory Tender Date 01/01/2023)(1)	$	810,000	$	819,145
City of Redding CA,
0.280%, 07/01/2022 (ETM) (Insured by NATL)(1)(5)		65,000		65,000
Commerce Community Development
Commission Successor Agency,
0.000%, 08/01/2021 (ETM)		50,000		49,912
Corona-Norco Unified School District,
0.000%, 08/01/2024(7)		30,000		34,215
Department of Veterans Affairs Veteran’s
Farm & Home Purchase Program,
4.000%, 12/01/2049 (Callable 06/01/2028)		2,340,000		2,599,272
Eastern Municipal Water District,
0.401%, 07/01/2030
(1 Month LIBOR USD + 0.300%) (Callable 04/01/2021)
(Mandatory Tender Date 10/01/2021)(2)		745,000		744,493
Emery Unified School District,
0.000%, 08/01/2041 (Pre-refunded to 08/01/2023)		505,000		191,900
Fresno Unified School District:
0.000%, 08/01/2027 (Callable 08/01/2021)		200,000		136,244
0.000%, 08/01/2028 (Callable 08/01/2021)		225,000		142,861
0.000%, 08/01/2030 (Callable 08/01/2021)		65,000		35,677
0.000%, 08/01/2032
(Callable 08/01/2023) (Insured by BAM)		75,000		42,039
0.000%, 08/01/2033 (Callable 08/01/2021)		310,000		136,388
0.000%, 08/01/2033
(Callable 08/01/2023) (Insured by BAM)		645,000		337,296
0.000%, 08/01/2034 (Callable 08/01/2021)		100,000		40,940
0.000%, 08/01/2034
(Callable 08/01/2023) (Insured by BAM)		400,000		195,304
0.000%, 08/01/2035
(Callable 08/01/2023) (Insured by BAM)		150,000		68,316
0.000%, 08/01/2036
(Callable 08/01/2023) (Insured by BAM)		665,000		282,592
0.000%, 08/01/2039
(Callable 08/01/2023) (Insured by BAM)		650,000		223,685
0.000%, 08/01/2040
(Callable 08/01/2023) (Insured by BAM)		805,000		258,123
0.000%, 08/01/2041 (Callable 08/01/2021)		1,480,000		372,768
0.000%, 08/01/2041 (Callable 08/01/2021)		1,075,000		270,868
0.000%, 08/01/2041
(Callable 08/01/2023) (Insured by BAM)		1,000,000		298,090
0.000%, 08/01/2044 (Callable 08/01/2023)		1,000,000		236,930

The accompanying notes are an integral part of these financial statements.

Page 222

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Glendale Unified School District:
0.000%, 09/01/2030 (Callable 09/01/2021)	$	350,000	$	196,504
0.000%, 09/01/2041 (Callable 09/01/2021)		500,000		125,980
Golden State Tobacco Securitization Corp.,
5.000%, 06/01/2023		590,000		653,401
Healdsburg Unified School District,
0.000%, 08/01/2032 (Callable 08/01/2022)		90,000		53,852
Kern Community College District,
0.000%, 08/01/2023		2,000,000		1,972,420
Lemoore Union High School District,
0.000%, 01/01/2022 (Insured by AMBAC)		30,000		29,802
Mendocino-Lake Community College District,
0.000%, 08/01/2035
(Pre-refunded to 08/01/2021) (Insured by AGM)		65,000		23,682
Merced Union High School District,
0.000%, 08/01/2046 (Pre-refunded to 08/01/2021)		100,000		16,760
Mizuho Floater/Residual Trust,
0.270%, 09/01/2046 (Callable 02/01/2021)
(Optional Put Date 01/07/2021)(1)(3)		1,000,000		1,000,000
Morongo Unified School District,
0.000%, 08/01/2039 (Pre-refunded to 08/01/2022)		170,000		60,637
Oakland California University School District,
5.000%, 08/01/2029 (Callable 08/01/2026)		265,000		322,616
Oro Grande Elementary School District:
4.000%, 09/15/2021		1,595,000		1,623,981
4.000%, 09/15/2022		1,975,000		2,058,286
Piedmont Unified School District:
0.000%, 08/01/2029 (Callable 08/01/2023)		200,000		140,204
0.000%, 08/01/2036 (Callable 08/01/2023)		975,000		436,176
0.000%, 08/01/2037 (Callable 08/01/2023)		400,000		167,500
0.000%, 08/01/2038 (Callable 08/01/2023)		150,000		58,834
0.000%, 08/01/2039 (Callable 08/01/2023)		420,000		154,216
Pittsburg Unified School District Financing Authority,
0.000%, 09/01/2035
(Pre-refunded to 09/01/2021) (Insured by AGM)		200,000		70,030
Ripon Unified School District:
0.000%, 08/01/2025
(Callable 08/01/2023) (Insured by BAM)		60,000		53,921
0.000%, 08/01/2026
(Callable 08/01/2023) (Insured by BAM)		35,000		29,860
0.000%, 08/01/2035
(Callable 08/01/2023) (Insured by BAM)		585,000		299,970
Rosemead School District:
0.000%, 08/01/2032
(Callable 08/01/2023) (Insured by AGM)		495,000		283,254

The accompanying notes are an integral part of these financial statements.

Page 223

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Rosemead School District: (cont.)
0.000%, 08/01/2033
(Callable 08/01/2023) (Insured by AGM)	$	700,000	$	372,764
0.000%, 08/01/2035
(Callable 08/01/2023) (Insured by AGM)		735,000		337,394
Roseville Natural Gas Financing Authority,
5.000%, 02/15/2023		330,000		361,584
Sacramento City Unified School District:
5.000%, 07/01/2022		100,000		106,096
5.000%, 07/01/2025 (Callable 07/01/2022)		170,000		180,157
5.000%, 07/01/2025 (Callable 07/01/2024)		725,000		825,558
0.000%, 07/01/2026 (Insured by AGM)		300,000		281,181
San Joaquin Hills Transportation Corridor Agency,
0.000%, 01/15/2025 (Insured by NATL)		90,000		83,797
San Mateo Union High School District:
0.000%, 09/01/2033 (Callable 09/01/2021)		100,000		44,819
5.000%, 12/15/2043
(Pre-refunded to 12/15/2024) (Insured by AMBAC)(7)		480,000		567,360
San Ysidro School District,
0.000%, 08/01/2042
(Pre-refunded to 08/01/2021) (Insured by AGM)		300,000		62,880
Sutter Union High School District,
0.000%, 06/01/2050 (Pre-refunded to 08/01/2025)		250,000		40,138
Tender Option Bond Trust,
0.270%, 06/15/2055(1)(3)		4,815,000		4,815,000
Twin Rivers Unified School District:
0.000%, 08/01/2035
(Pre-refunded to 02/01/2024) (Insured by BAM)		275,000		132,825
0.000%, 08/01/2036
(Pre-refunded to 02/01/2024) (Insured by BAM)		85,000		38,353
Vallejo City Unified School District,
5.900%, 08/01/2025 (Insured by NATL)		500,000		562,580
Victor Valley Union High School District,
0.000%, 08/01/2044 (Pre-refunded to 08/01/2023)		1,000,000		301,740
Western Placer Unified School District:
2.000%, 06/01/2025 (Callable 06/01/2023)		1,625,000		1,682,915
2.000%, 06/01/2025 (Callable 06/01/2023)		3,300,000		3,404,742
Westminster School District:
0.000%, 08/01/2036
(Callable 08/01/2023) (Insured by BAM)		190,000		82,369
0.000%, 08/01/2038
(Callable 08/01/2023) (Insured by BAM)		600,000		226,494
0.000%, 08/01/2048
(Callable 08/01/2023) (Insured by BAM)		2,215,000		391,944

The accompanying notes are an integral part of these financial statements.

Page 224

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Westminster School District: (cont.)
0.000%, 08/01/2053
(Callable 08/01/2023) (Insured by BAM)	$	445,000	$	53,449
Total California
(Cost $56,170,113)				56,886,941		3.5	%
Colorado
Bromley Park Metropolitan District No. 2:
5.000%, 12/01/2024 (Insured by BAM)		300,000		350,001
5.000%, 12/01/2025 (Insured by BAM)		315,000		379,591
City & County of Denver CO,
5.000%, 11/15/2031
(Mandatory Tender Date 11/15/2022)(1)		3,275,000		3,558,517
Colorado Educational & Cultural Facilities Authority:
4.000%, 11/01/2021		50,000		51,338
4.000%, 12/01/2021		100,000		103,084
5.000%, 12/01/2021		80,000		83,301
4.000%, 03/01/2022		45,000		46,631
5.000%, 12/01/2022		200,000		215,060
4.000%, 04/01/2023		95,000		98,451
5.000%, 10/01/2023		1,360,000		1,461,973
5.000%, 10/01/2024		2,165,000		2,384,033
5.250%, 03/01/2025 (Insured by NATL)		840,000		966,907
4.000%, 12/15/2025		790,000		839,091
5.000%, 06/15/2027 (Callable 06/15/2026)		635,000		764,019
Colorado Health Facilities Authority:
0.000%, 07/15/2022 (ETM)		3,000,000		2,986,290
5.000%, 10/01/2023		300,000		335,850
5.000%, 12/01/2023 (Pre-refunded to 12/01/2022)		1,000,000		1,091,040
5.000%, 05/15/2025 (Pre-refunded to 05/15/2023)		320,000		354,397
5.000%, 10/01/2025		350,000		420,329
5.000%, 12/01/2025 (Pre-refunded to 12/01/2022)		1,600,000		1,745,664
5.000%, 10/01/2026		400,000		492,996
4.000%, 12/01/2026 (Pre-refunded to 06/01/2022)		1,535,000		1,616,831
5.000%, 12/01/2027 (Pre-refunded to 12/01/2022)		300,000		327,312
5.000%, 12/01/2030 (Callable 06/01/2025)		1,000,000		1,139,070
5.000%, 11/15/2036
(Mandatory Tender Date 11/15/2023)(1)		145,000		164,278
2.800%, 05/15/2042 (Callable 11/15/2022)
(Mandatory Tender Date 05/15/2023)(1)		2,225,000		2,320,363
5.625%, 06/01/2043 (Pre-refunded to 06/01/2023)		1,080,000		1,219,968
5.000%, 11/15/2048
(Mandatory Tender Date 11/20/2025)(1)		190,000		232,092
5.000%, 08/01/2049 (Callable 02/01/2025)
(Mandatory Tender Date 08/01/2025)(1)		5,500,000		6,443,635

The accompanying notes are an integral part of these financial statements.

Page 225

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Colorado Housing & Finance Authority:
1.450%, 04/01/2022	$	60,000	$	60,631
4.000%, 05/01/2048
(Callable 11/01/2026) (Insured by GNMA)		375,000		408,221
4.250%, 11/01/2049
(Callable 11/01/2028) (Insured by GNMA)		930,000		1,046,166
1.650%, 10/01/2057
(Mandatory Tender Date 04/01/2023)(1)		2,415,000		2,470,593
County of Moffat CO,
2.000%, 03/01/2036
(Mandatory Tender Date 10/03/2022)(1)		540,000		549,785
Crystal Valley Metropolitan District No. 2,
5.000%, 12/01/2027 (Insured by AGM)		275,000		349,877
Denver Convention Center Hotel Authority:
5.000%, 12/01/2024		2,170,000		2,468,614
5.000%, 12/01/2025		1,100,000		1,285,592
Denver Health & Hospital Authority,
4.000%, 12/01/2027 (Callable 12/01/2023)		225,000		240,923
E-470 Public Highway Authority:
0.000%, 09/01/2022 (Insured by NATL)		30,000		29,798
1.138%, 09/01/2039
(1 Month LIBOR USD + 1.050%)
(Callable 03/01/2021)
(Mandatory Tender Date 09/01/2021)(2)		400,000		400,292
High Plains Metropolitan District:
4.000%, 12/01/2022 (Insured by NATL)		420,000		446,435
4.000%, 12/01/2024 (Insured by NATL)		200,000		224,566
Lincoln Park Metropolitan District,
4.000%, 12/01/2023 (Insured by AGM)		150,000		165,223
Southlands Metropolitan District No. 1:
3.000%, 12/01/2022		78,000		79,010
3.000%, 12/01/2022		95,000		96,228
Tallyns Reach Metropolitan District No. 3,
5.000%, 12/01/2023 (Insured by BAM)		30,000		33,733
Vauxmont Metropolitan District:
5.000%, 12/15/2025
(Callable 12/15/2024) (Insured by AGM)		125,000		148,899
5.000%, 12/15/2026
(Callable 12/15/2024) (Insured by AGM)		135,000		160,177
5.000%, 12/15/2027
(Callable 12/15/2024) (Insured by AGM)		160,000		189,067
Vista Ridge Metropolitan District,
4.500%, 12/01/2024 (Insured by BAM)		200,000		230,154
Total Colorado
(Cost $41,963,694)				43,276,096		2.7	%

The accompanying notes are an integral part of these financial statements.

Page 226

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Connecticut
City of Bridgeport CT:
5.000%, 02/01/2022 (Insured by BAM)	$	250,000	$	262,042
5.000%, 02/01/2024 (Insured by BAM)		475,000		535,715
City of Hartford CT,
5.000%, 04/01/2022 (Insured by AGM)		1,000,000		1,055,370
City of New Haven CT,
5.000%, 08/15/2022 (ETM) (Insured by AGM)		520,000		560,128
Connecticut Housing Finance Authority:
3.000%, 05/15/2025 (Callable 05/15/2021)		825,000		831,682
4.000%, 11/15/2044 (Callable 11/15/2023)		90,000		94,251
4.000%, 11/15/2045 (Callable 11/15/2027)		185,000		204,259
4.000%, 05/15/2049 (Callable 11/15/2028)		1,515,000		1,727,676
2.600%, 11/15/2058 (Callable 02/01/2021)
(Mandatory Tender Date 11/15/2021)(1)		320,000		320,499
1.625%, 11/15/2059 (Callable 02/01/2021)
(Mandatory Tender Date 11/15/2022)(1)		2,500,000		2,501,875
Connecticut Municipal Electric Energy Cooperative,
5.000%, 01/01/2030 (Callable 01/01/2022)		530,000		553,553
Connecticut State Health &
Educational Facilities Authority:
4.000%, 11/01/2021		100,000		102,960
5.000%, 07/01/2022		1,300,000		1,374,074
5.000%, 07/01/2023		805,000		879,817
5.000%, 07/01/2024		800,000		901,664
2.750%, 01/01/2026 (Callable 07/01/2022)(3)		450,000		454,266
5.000%, 11/01/2026 (Callable 11/01/2022)		445,000		479,981
5.000%, 07/01/2028 (Callable 07/01/2024)		630,000		724,128
Connecticut State Higher Education
Supplement Loan Authority:
5.000%, 11/15/2022		500,000		540,225
5.000%, 11/15/2023		400,000		448,424
5.000%, 11/15/2023		850,000		952,901
5.000%, 11/15/2024		450,000		522,108
5.000%, 11/15/2024		225,000		261,054
Southeastern Connecticut Water Authority,
4.000%, 09/01/2022
(Callable 02/01/2021) (Insured by ST AID)		175,000		175,488
State of Connecticut:
1.020%, 03/01/2024
(SIFMA Municipal Swap Index + 0.950%)(2)		200,000		201,784
5.000%, 10/01/2026		1,040,000		1,299,647
5.000%, 10/01/2027 (Callable 10/01/2023)		1,005,000		1,126,263
Town of Hamden CT:
4.000%, 08/15/2021 (ETM) (Insured by BAM)		415,000		424,703
5.000%, 08/01/2022 (Insured by BAM)		285,000		301,815

The accompanying notes are an integral part of these financial statements.

Page 227

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Town of Hamden CT: (cont.)
5.000%, 08/01/2023 (Insured by BAM)	$	150,000	$	164,271
Town of Plainfield CT,
3.375%, 07/15/2026 (Callable 07/15/2024)		275,000		300,405
Town of Plymouth CT,
3.000%, 10/15/2027
(Callable 10/15/2024) (Insured by BAM)		300,000		323,727
University of Connecticut,
5.000%, 11/15/2026 (Callable 11/15/2022)		760,000		819,812
Total Connecticut
(Cost $20,833,319)				21,426,567		1.3	%
Delaware
Delaware Municipal Electric Corp.:
5.000%, 10/01/2024 (Insured by BAM)		230,000		266,825
5.000%, 10/01/2025 (Insured by BAM)		140,000		167,842
Delaware State Economic Development Authority,
5.000%, 10/01/2028
(Callable 10/01/2024) (Insured by AGM)		1,000,000		1,134,740
Delaware State Housing Authority,
2.600%, 07/01/2043
(Callable 06/01/2023) (Insured by GNMA)		142,661		146,853
Total Delaware
(Cost $1,687,711)				1,716,260		0.1	%
District of Columbia
District of Columbia:
5.000%, 07/01/2025		500,000		585,205
5.000%, 12/01/2026 (Callable 12/01/2022)		310,000		337,882
4.000%, 12/01/2028 (Callable 12/01/2022)		330,000		351,727
3.000%, 06/01/2030		1,205,000		1,254,417
District of Columbia Housing Finance Agency:
1.250%, 03/01/2023
(Mandatory Tender Date 03/01/2022)
(Insured by FNMA)(1)		1,700,000		1,715,164
3.500%, 06/15/2023		245,000		253,974
2.550%, 09/01/2023
(Mandatory Tender Date 03/01/2022)
(Insured by FHA)(1)		1,200,000		1,228,668
1.750%, 09/01/2025
(Mandatory Tender Date 09/01/2023)
(Insured by FHA)(1)		2,260,000		2,325,178
1.450%, 02/01/2039
(Mandatory Tender Date 08/01/2022)(1)		150,000		152,357
Total District of Columbia
(Cost $8,044,526)				8,204,572		0.5	%

The accompanying notes are an integral part of these financial statements.

Page 228

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Florida
Capital Trust Agency, Inc.:
4.000%, 12/15/2024	$	250,000	$	266,155
4.000%, 11/01/2025 (Pre-refunded to 11/01/2022)		270,000		283,022
4.250%, 12/01/2042 (Pre-refunded to 12/01/2022)		65,000		72,957
City of Auburndale FL,
5.250%, 12/01/2023		1,010,000		1,153,622
City of Boynton Beach FL,
4.500%, 11/01/2022
(Callable 11/01/2021) (Insured by AGM)		130,000		134,458
City of Jacksonville FL:
5.000%, 11/01/2022		100,000		107,847
0.040%, 05/01/2029 (Optional Put Date 01/04/2021)(1)		11,000,000		11,000,000
5.000%, 10/01/2029 (Callable 10/01/2026)		1,175,000		1,437,836
City of Lakeland FL,
5.000%, 11/15/2028 (Callable 11/15/2026)		100,000		122,915
City of Melbourne FL,
0.000%, 10/01/2023 (Insured by NATL)		100,000		98,307
City of Orlando FL,
5.000%, 11/01/2025 (Insured by AGM)		1,000,000		1,202,230
City of Port St. Lucie FL:
5.000%, 09/01/2021		55,000		56,618
5.250%, 09/01/2022 (Insured by NATL)		100,000		108,081
City of Tallahassee FL:
5.000%, 12/01/2022		475,000		510,064
5.000%, 12/01/2024		200,000		229,496
5.000%, 12/01/2025		500,000		591,390
County of Brevard FL,
5.000%, 07/01/2031 (Callable 07/01/2027)		540,000		671,285
County of Broward FL:
5.000%, 09/01/2025 (Callable 09/01/2023)		1,540,000		1,719,025
5.000%, 09/01/2026 (Callable 09/01/2023)		1,045,000		1,164,704
5.000%, 09/01/2027 (Callable 09/01/2023)		1,525,000		1,697,066
County of Escambia FL,
0.060%, 07/01/2022 (Optional Put Date 01/04/2021)(1)		1,000,000		1,000,000
County of Manatee FL,
0.020%, 09/01/2024 (Optional Put Date 01/04/2021)(1)		6,000,000		6,000,000
County of Miami-Dade FL:
0.000%, 10/01/2023 (ETM) (Insured by NATL)		200,000		197,768
0.000%, 10/01/2028 (ETM) (Insured by NATL)		40,000		37,603
County of Okeechobee FL,
1.550%, 07/01/2039
(Mandatory Tender Date 07/01/2021)(1)		475,000		477,874
County of St. Johns FL,
0.000%, 06/01/2021 (Insured by NATL)		255,000		254,712

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
County of St. Lucie FL,
0.030%, 09/01/2028 (Optional Put Date 01/04/2021)(1)	$	8,000,000	$	8,000,000
Florida Department of Environmental Protection,
5.000%, 07/01/2025		525,000		634,447
Florida Development Finance Corp.:
5.000%, 04/01/2022		155,000		162,750
5.000%, 04/01/2023		275,000		299,654
4.000%, 06/15/2024		430,000		468,304
2.625%, 12/15/2024(3)		310,000		317,794
5.000%, 04/01/2025		200,000		233,078
5.250%, 02/01/2026 (Callable 08/01/2023)		100,000		108,324
5.000%, 06/15/2026		370,000		437,902
5.000%, 06/15/2027		390,000		470,613
Florida Gulf Coast University Financing Corp.:
5.000%, 02/01/2023		240,000		261,614
5.000%, 02/01/2024		250,000		282,853
5.000%, 02/01/2027		270,000		334,036
Florida Higher Educational Facilities Financial Authority,
5.000%, 04/01/2028 (Callable 04/01/2026)		435,000		517,084
Florida Housing Finance Corp.:
3.700%, 07/01/2021
(Callable 01/21/2021) (Insured by GNMA)		535,000		535,637
1.450%, 03/01/2023
(Mandatory Tender Date 03/01/2022)(1)		100,000		101,169
4.350%, 01/01/2046 (Callable 01/01/2024)		210,000		218,123
4.000%, 07/01/2047
(Callable 07/01/2025) (Insured by GNMA)		90,000		96,010
4.000%, 07/01/2049
(Callable 07/01/2027) (Insured by GNMA)		200,000		218,720
Florida Municipal Loan Council:
0.000%, 04/01/2021 (Insured by NATL)		50,000		49,879
0.000%, 04/01/2022 (Insured by NATL)		265,000		261,370
4.000%, 12/01/2022 (Insured by AGM)		155,000		165,520
0.000%, 04/01/2023 (Insured by NATL)		190,000		184,965
5.000%, 12/01/2023 (Insured by AGM)		160,000		180,850
0.000%, 04/01/2024 (Insured by NATL)		55,000		52,803
5.000%, 12/01/2024 (Insured by AGM)		85,000		99,850
Florida Municipal Power Agency,
5.000%, 10/01/2025 (Callable 10/01/2021)		585,000		605,750
Heritage Bay Community Development District,
2.250%, 05/01/2021		125,000		125,637
Herons Glen Recreation District,
2.500%, 05/01/2027 (Insured by BAM)		250,000		266,480

The accompanying notes are an integral part of these financial statements.

Page 230

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Highlands County Health Facilities Authority:
0.070%, 11/15/2035 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)	$	4,200,000	$	4,200,000
0.070%, 11/15/2037 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		10,000,000		10,000,000
Hillsborough County Industrial Development Authority,
3.500%, 10/01/2028 (Callable 10/01/2023)		240,000		253,320
Hollywood Beach Community Development District I,
5.000%, 10/01/2027		545,000		688,635
Hollywood Community Redevelopment Agency:
5.000%, 03/01/2023		665,000		728,454
5.000%, 03/01/2024		800,000		910,888
JEA Water & Sewer System Revenue:
5.000%, 10/01/2023		150,000		169,327
5.000%, 10/01/2023		210,000		237,059
5.000%, 10/01/2026 (Callable 04/01/2021)		245,000		247,688
Lee County School Board,
5.000%, 08/01/2023		190,000		212,705
Miami Beach Health Facilities Authority,
4.000%, 11/15/2025 (Callable 11/15/2022)		735,000		770,868
Miami Health Facilities Authority,
5.000%, 07/01/2021		310,000		309,597
Miami-Dade County Educational Facilities Authority:
5.000%, 04/01/2022		150,000		157,864
5.000%, 04/01/2023		150,000		163,239
Miami-Dade County Industrial Development Authority:
0.040%, 06/01/2021 (Optional Put Date 01/04/2021)(1)		7,635,000		7,635,000
5.000%, 01/15/2022		385,000		397,528
Orange County Convention Center,
5.000%, 10/01/2027 (Callable 10/01/2025)		1,000,000		1,190,670
Orange County Health Facilities Authority:
3.500%, 08/01/2021		575,000		583,544
6.250%, 10/01/2021 (ETM) (Insured by NATL)		40,000		41,758
4.000%, 08/01/2024		25,000		27,518
5.000%, 08/01/2028 (Callable 08/01/2024)		2,000,000		2,241,880
Orange County Housing Finance Authority:
1.900%, 04/01/2022
(Mandatory Tender Date 04/01/2021)(1)		2,530,000		2,539,665
4.375%, 03/01/2031
(Callable 03/01/2021) (Insured by GNMA)		50,000		50,270
4.000%, 09/01/2040
(Callable 09/01/2024) (Insured by GNMA)		305,000		319,036
4.250%, 09/01/2049
(Callable 09/01/2027) (Insured by GNMA)		195,000		217,743

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Osceola County Expressway Authority,
0.000%, 10/01/2024 (ETM)	$	265,000	$	258,553
Palm Beach County Health Facilities Authority:
5.000%, 08/15/2021		400,000		410,892
5.000%, 11/15/2022		220,000		236,504
5.000%, 12/01/2031 (Pre-refunded to 12/01/2024)		1,250,000		1,476,875
Pasco County School Board,
0.820%, 08/01/2032
(SIFMA Municipal Swap Index + 0.750%)
(Callable 08/04/2021)
(Mandatory Tender Date 08/02/2023)(2)		3,650,000		3,660,220
Pinellas County Housing Authority,
1.000%, 11/01/2027		3,565,000		3,590,311
Pinellas County Housing Finance Authority:
1.250%, 08/01/2022
(Mandatory Tender Date 08/01/2021)(1)		1,015,000		1,020,329
4.375%, 09/01/2027
(Callable 09/01/2021) (Insured by GNMA)		50,000		50,488
3.500%, 03/01/2046
(Callable 09/01/2025) (Insured by GNMA)		1,045,000		1,104,596
Reedy Creek Improvement District,
5.000%, 10/01/2024 (Callable 10/01/2023)		145,000		161,655
Sarasota County Public Hospital District,
5.250%, 07/01/2024 (Insured by NATL)		115,000		130,960
School Board of Miami-Dade County:
5.000%, 05/01/2031
(Mandatory Tender Date 05/01/2024)(1)		805,000		923,528
5.500%, 05/01/2031
(Callable 05/01/2021) (Insured by AGM)		300,000		304,791
St. Johns River Power Park,
5.000%, 10/01/2024 (Callable 02/01/2021)		105,000		105,345
St. Lucie County School Board,
5.000%, 07/01/2027 (Callable 07/01/2023)		1,150,000		1,271,233
UCF Convocation Corp.:
5.000%, 10/01/2028 (Callable 10/01/2025)		630,000		750,418
5.000%, 10/01/2030 (Callable 10/01/2025)		935,000		1,100,383
University of North Florida Financing Corp.,
5.000%, 11/01/2023 (Insured by AGM)		485,000		533,903
Volusia County Educational Facility Authority:
5.000%, 10/15/2029 (Callable 04/15/2025)		1,035,000		1,197,940
5.000%, 10/15/2033 (Callable 04/15/2025)		450,000		515,318
Total Florida
(Cost $98,612,285)				99,384,749		6.2	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Georgia
Athens Housing Authority:
5.000%, 06/15/2022	$	280,000	$	296,271
5.000%, 06/15/2027		1,570,000		1,931,225
5.000%, 06/15/2028 (Callable 06/15/2027)		1,755,000		2,145,856
Atlanta Development Authority,
5.000%, 07/01/2024		140,000		155,459
Bartow County Development Authority,
2.750%, 12/01/2032
(Mandatory Tender Date 03/15/2023)(1)		2,000,000		2,085,900
Burke County Development Authority:
2.250%, 10/01/2032
(Mandatory Tender Date 05/25/2023)(1)		170,000		175,918
1.500%, 01/01/2040
(Mandatory Tender Date 02/03/2025)(1)		6,500,000		6,636,955
1.650%, 11/01/2048
(Mandatory Tender Date 06/18/2021)(1)		245,000		246,384
1.550%, 12/01/2049
(Mandatory Tender Date 08/19/2022)(1)		2,000,000		2,031,920
1.700%, 12/01/2049
(Mandatory Tender Date 08/22/2024)(1)		1,680,000		1,732,382
City of Atlanta GA:
5.000%, 01/01/2023 (Callable 02/01/2021)		450,000		451,571
5.000%, 01/01/2024 (Callable 02/01/2021)		515,000		516,797
4.000%, 07/01/2026 (Callable 07/01/2023)		100,000		107,578
City of Thomson GA:
3.000%, 07/01/2022		535,000		553,276
3.000%, 07/01/2023 (Callable 07/01/2022)		550,000		568,133
Colquitt County Development Authority,
0.000%, 12/01/2021 (ETM)		525,000		524,003
Cornelia Urban Redevelopment Agency,
4.000%, 10/01/2023 (Insured by AGM)		80,000		86,638
Development Authority for Fulton County:
5.000%, 10/01/2025		975,000		1,142,544
5.000%, 10/01/2026		1,415,000		1,695,665
5.000%, 10/01/2027		1,015,000		1,241,670
Development Authority of Appling County,
1.500%, 01/01/2038
(Mandatory Tender Date 02/03/2025)(1)		900,000		918,963
Development Authority of Bulloch County:
5.000%, 07/01/2023		260,000		285,646
5.000%, 07/01/2024		200,000		227,178
5.000%, 07/01/2025		315,000		370,191
5.000%, 07/01/2026		330,000		398,297

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Development Authority of Cobb County,
5.000%, 07/15/2024	$	1,900,000	$	2,144,758
Development Authority of Monroe County,
0.060%, 11/01/2048 (Optional Put Date 01/04/2021)(1)		6,450,000		6,450,000
Fayette County Hospital Authority,
5.000%, 07/01/2054 (Callable 01/01/2024)
(Mandatory Tender Date 07/01/2024)(1)		1,755,000		1,990,117
Forsyth County Hospital Authority,
6.375%, 10/01/2028 (ETM)		675,000		840,220
Main Street Natural Gas, Inc.:
5.000%, 03/15/2022		195,000		205,639
5.000%, 09/01/2026 (Callable 06/01/2026)		500,000		616,815
0.846%, 04/01/2048
(1 Month LIBOR USD + 0.750%)
(Callable 06/01/2023)
(Mandatory Tender Date 09/01/2023)(2)		5,140,000		5,148,687
0.926%, 08/01/2048
(1 Month LIBOR USD + 0.830%)
(Callable 09/01/2023)
(Mandatory Tender Date 12/01/2023)(2)		6,600,000		6,623,562
4.000%, 08/01/2049 (Callable 09/01/2024)
(Mandatory Tender Date 12/02/2024)(1)		3,735,000		4,234,257
4.000%, 03/01/2050 (Callable 06/01/2026)
(Mandatory Tender Date 09/01/2026)(1)		355,000		416,905
Monroe County Public Facilities Authority:
5.000%, 06/01/2024		180,000		207,090
5.000%, 06/01/2025		200,000		238,228
Pelham School District:
5.000%, 09/01/2021 (Insured by ST AID)		100,000		103,008
5.000%, 09/01/2022 (Insured by ST AID)		125,000		134,370
5.000%, 09/01/2023 (Insured by ST AID)		290,000		324,278
5.000%, 09/01/2024 (Insured by ST AID)		210,000		243,634
Private Colleges & Universities Authority:
3.750%, 10/01/2021		80,000		81,328
5.000%, 10/01/2021		75,000		76,932
5.000%, 06/01/2024		275,000		308,547
0.490%, 10/01/2039
(SIFMA Municipal Swap Index + 0.420%)
(Callable 02/16/2022)
(Mandatory Tender Date 08/16/2022)(2)		2,200,000		2,199,428
Richmond County Development Authority:
0.000%, 12/01/2021 (ETM)		425,000		424,193
0.000%, 12/01/2021 (ETM)		370,000		369,297
Valdosta & Lowndes County Hospital Authority,
5.000%, 10/01/2033 (Pre-refunded to 10/01/2021)		300,000		310,809

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Washington Wilkes Payroll Development Authority,
0.000%, 12/01/2021 (ETM)	$	400,000	$	398,700
Total Georgia
(Cost $59,702,712)				60,617,222		3.8	%
Guam
Guam Department of Education,
3.625%, 02/01/2025		250,000		251,535
Total Guam
(Cost $250,000)				251,535		0.0	%
Idaho
University of Idaho,
5.250%, 04/01/2041
(Mandatory Tender Date 04/01/2021)(1)		2,805,000		2,833,695
Total Idaho
(Cost $2,827,499)				2,833,695		0.2	%
Illinois
Adams & Hancock Counties
Community Unit School District No. 4,
4.000%, 12/01/2026
(Callable 12/01/2025) (Insured by BAM)		275,000		315,532
Bureau County Township High School District No. 502,
3.000%, 12/01/2021 (Insured by BAM)		30,000		30,696
Channahon Park District:
4.000%, 12/15/2025 (Insured by BAM)		365,000		421,757
4.000%, 12/15/2026 (Insured by BAM)		380,000		447,925
4.000%, 12/15/2027 (Insured by BAM)		395,000		473,554
Chicago Board of Education:
0.000%, 12/01/2022		125,000		122,495
5.000%, 12/01/2022 (Insured by AGM)		145,000		155,747
5.000%, 12/01/2023 (Insured by AGM)		500,000		555,785
Chicago Park District:
5.000%, 01/01/2024		1,305,000		1,446,501
5.250%, 01/01/2040 (Callable 01/01/2021)		3,895,000		3,895,000
City of Burbank IL,
4.000%, 12/01/2021 (Insured by BAM)		500,000		515,880
City of Chicago IL:
5.125%, 01/01/2022		1,220,000		1,237,824
5.000%, 01/01/2024 (Callable 01/01/2022)		705,000		734,532
5.000%, 11/01/2026		2,900,000		3,545,134
0.000%, 01/01/2027 (Insured by NATL)		3,750,000		3,461,888
5.000%, 01/01/2027 (Callable 01/01/2025)		1,085,000		1,257,059
5.250%, 01/01/2038 (Pre-refunded to 01/01/2022)		400,000		420,192

The accompanying notes are an integral part of these financial statements.

Page 235

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Decatur IL,
4.000%, 03/01/2022	$	65,000	$	67,326
City of Oregon IL,
4.000%, 12/01/2024 (Callable 12/01/2022)		105,000		110,972
City of Peoria IL:
4.500%, 01/01/2023 (Callable 04/15/2021)		500,000		514,880
4.000%, 01/01/2026 (Callable 04/15/2021)		500,000		514,015
City of Princeton IL:
4.000%, 11/01/2021 (Insured by AGM)		45,000		46,374
4.000%, 11/01/2022 (Insured by AGM)		100,000		106,190
4.000%, 01/01/2023 (Insured by AGM)		50,000		53,274
4.000%, 01/01/2025 (Insured by AGM)		120,000		135,045
City of Rock Island IL,
3.000%, 12/01/2022		435,000		450,373
City of Rockford IL,
5.000%, 12/15/2023 (Insured by BAM)		110,000		124,038
City of Springfield IL:
5.000%, 12/01/2023		155,000		173,239
5.000%, 03/01/2024		35,000		39,781
City of Waukegan IL,
3.000%, 12/30/2022		365,000		380,494
Cook County Forest Preserve District,
5.000%, 11/15/2021		750,000		775,777
Cook County School District No. 123,
0.000%, 12/01/2021 (ETM)		200,000		199,440
Cook County School District No. 130,
5.000%, 12/01/2025 (Insured by AGM)		1,320,000		1,582,205
Cook County School District No. 154,
3.500%, 12/01/2024 (Insured by BAM)		114,000		123,192
Cook County School District No. 159:
0.000%, 12/01/2022 (ETM) (Insured by AGM)		80,000		79,454
0.000%, 12/01/2022 (Insured by AGM)		20,000		19,696
Cook County School District No. 163,
6.000%, 12/15/2024 (Insured by BAM)		795,000		950,422
Cook County School District No. 84:
0.000%, 12/01/2021 (ETM) (Insured by AGM)		180,000		179,496
0.000%, 12/01/2021 (ETM) (Insured by AGM)		105,000		104,706
Cook County Township High School District No. 201,
0.000%, 12/01/2025 (Insured by AGM)		165,000		156,308
County of Cook IL:
5.000%, 11/15/2028 (Callable 11/15/2026)		3,000,000		3,590,970
5.000%, 11/15/2032 (Callable 11/15/2027)		1,000,000		1,244,820
County of Washington IL,
4.000%, 12/15/2024 (Insured by AGM)		250,000		281,838

The accompanying notes are an integral part of these financial statements.

Page 236

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
DeKalb & Kane Counties Community
Unit School District No. 427,
4.000%, 02/01/2029
(Callable 02/01/2022) (Insured by BAM)	$	475,000	$	491,297
DeKalb County Community
Unit School District No. 424,
0.000%, 01/01/2022 (Insured by AMBAC)		250,000		247,887
Exceptional Children Have Opportunities:
5.000%, 12/01/2024		380,000		440,941
5.000%, 12/01/2025		505,000		604,505
5.000%, 12/01/2025		245,000		293,275
5.000%, 12/01/2026		530,000		650,246
5.000%, 12/01/2026		255,000		312,854
Fulton, Mason, Knox, Schuyler, Etc.
Counties Community College District No. 534,
4.000%, 12/01/2027
(Callable 12/01/2022) (Insured by BAM)		90,000		94,678
Hampshire Special Service Area No. 13:
3.000%, 03/01/2022 (Insured by BAM)		100,000		102,245
3.000%, 03/01/2023 (Insured by BAM)		210,000		218,377
3.000%, 03/01/2026 (Insured by BAM)		90,000		97,573
Hoffman Estates Park District,
5.000%, 12/01/2025		2,585,000		2,914,794
Illinois Development Finance Authority,
0.000%, 07/15/2025 (ETM)		870,000		850,547
Illinois Finance Authority:
5.000%, 01/01/2021		85,000		85,000
4.000%, 09/01/2021		75,000		76,252
5.000%, 11/01/2021		75,000		77,361
5.000%, 02/15/2022		235,000		246,595
5.000%, 05/15/2022		190,000		197,847
5.000%, 09/01/2022		200,000		212,418
5.000%, 05/15/2023		120,000		132,014
5.000%, 08/01/2023		1,455,000		1,576,449
5.000%, 09/01/2023		400,000		438,724
5.000%, 05/15/2024		350,000		399,228
5.000%, 11/01/2024		340,000		385,958
5.000%, 09/01/2029 (Callable 09/01/2026)		1,575,000		1,826,496
5.000%, 10/01/2030 (Callable 10/01/2026)		500,000		596,815
4.000%, 11/01/2030		2,995,000		3,445,448
1.451%, 05/01/2036
(1 Month LIBOR USD + 1.350%)
(Callable 02/01/2021)
(Mandatory Tender Date 05/01/2021)(2)		235,000		235,028

The accompanying notes are an integral part of these financial statements.

Page 237

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Illinois Finance Authority: (cont.)
0.820%, 01/01/2046
(SIFMA Municipal Swap Index + 0.750%)
(Callable 07/01/2022)
(Mandatory Tender Date 07/01/2023)(2)	$	835,000	$	835,676
5.000%, 05/15/2050 (Callable 05/15/2026)
(Mandatory Tender Date 11/15/2026)(1)		4,000,000		4,882,280
Illinois Housing Development Authority:
2.600%, 10/01/2025 (Insured by GNMA)		1,120,000		1,210,653
2.750%, 04/01/2026 (Insured by GNMA)		1,435,000		1,571,626
2.450%, 06/01/2043
(Callable 01/01/2023) (Insured by GNMA)		292,501		299,387
4.500%, 10/01/2048 (Callable 04/01/2028)		505,000		566,761
4.250%, 10/01/2049 (Callable 04/01/2028)		1,820,000		2,035,379
Illinois Sports Facilities Authority:
0.000%, 06/15/2021 (Insured by AMBAC)		150,000		148,776
5.000%, 06/15/2028 (Insured by BAM)		1,000,000		1,247,520
Iroquois & Kankakee Counties
Community Unit School District No. 4,
0.000%, 11/01/2021 (Insured by AMBAC)		500,000		495,835
Joliet Park District:
5.000%, 03/01/2022 (Callable 03/01/2021)		90,000		90,471
4.000%, 02/01/2023 (Insured by BAM)		150,000		159,495
4.000%, 02/01/2028
(Callable 02/01/2024) (Insured by BAM)		715,000		769,833
Joliet Regional Port District,
4.000%, 06/30/2025
(Callable 06/30/2024) (Insured by AGM)		40,000		44,540
Kane & DeKalb Counties Community
Unit School District No. 302,
5.000%, 02/01/2026		500,000		606,470
Kane County School District No. 131,
3.500%, 06/01/2024
(Callable 06/01/2021) (Insured by AGM)		785,000		793,384
Kankakee, Iroquois, Ford, Etc. Counties
Community Unit School District No. 2,
4.000%, 12/01/2023 (Insured by AGM)		445,000		483,960
Kendall & Kane Counties Community
Unit School District No. 115,
0.000%, 01/01/2022 (Insured by NATL)		1,000,000		994,580
Kendall County Forest Preserve District,
4.000%, 01/01/2025 (Insured by BAM)		215,000		238,912
Knox & Warren Counties Community
Unit School District No. 205,
6.000%, 01/01/2030 (Callable 01/01/2021)		500,000		500,000

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Lake County Community Unit School District No. 116,
5.000%, 01/15/2025 (Callable 01/15/2023)	$	255,000	$	278,348
Lake County Elementary School District No. 6:
0.000%, 12/01/2021 (Insured by AMBAC)		115,000		113,423
0.000%, 12/01/2022 (Insured by AMBAC)		115,000		111,424
0.000%, 12/01/2024 (Insured by AMBAC)		70,000		65,019
Lake County School District No. 38:
0.000%, 02/01/2023 (Insured by AMBAC)		1,065,000		1,032,965
0.000%, 02/01/2025 (Insured by AMBAC)		210,000		196,633
Logan Sangamon Etc Counties
Community Unit School District No. 23:
5.000%, 12/01/2021 (Insured by AGM)		440,000		456,231
5.000%, 12/01/2022 (Insured by AGM)		520,000		562,973
Macon & De Witt Counties
Community Unit School District No. 1,
2.250%, 12/01/2022 (Callable 02/01/2021)		80,000		80,080
Madison-Macoupin Etc. Counties
Community College District No. 536:
4.000%, 05/01/2025 (Insured by AGM)		400,000		453,796
4.000%, 05/01/2030
(Callable 05/01/2027) (Insured by AGM)		1,000,000		1,155,220
McHenry County Community
Unit School District No. 200,
5.250%, 01/15/2027 (Callable 01/15/2024)		135,000		154,683
Menard Cass & Sangamon Counties
Community Unit School District No. 202,
4.000%, 12/01/2022 (Insured by AGM)		300,000		318,528
Metropolitan Pier & Exposition Authority:
0.000%, 06/15/2021 (ETM) (Insured by NATL)		45,000		44,926
0.000%, 06/15/2021 (ETM)		55,000		54,910
0.000%, 06/15/2022 (ETM) (Insured by NATL)		30,000		29,806
5.650%, 06/15/2022 (Insured by NATL)(7)		160,000		167,453
5.500%, 12/15/2023 (ETM) (Insured by NATL)		20,000		20,462
5.500%, 12/15/2023 (Insured by NATL)		135,000		145,966
0.000%, 06/15/2024 (Insured by NATL)		35,000		33,398
5.700%, 06/15/2025
(Callable 06/15/2022) (Insured by NATL)(7)		35,000		37,201
5.000%, 12/15/2026
(Callable 06/15/2022) (Insured by ST AID)		290,000		303,096
Metropolitan Water Reclamation
District of Greater Chicago,
5.000%, 12/01/2027 (Callable 12/01/2026)		500,000		626,795
Newport Township Fire Protection District:
4.000%, 01/01/2022 (Insured by BAM)		125,000		128,744
4.000%, 01/01/2023 (Insured by BAM)		135,000		143,093

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Ogle & Winnebago Counties Community
Unit School District No. 223,
5.000%, 12/01/2021 (Insured by BAM)	$	150,000	$	156,258
Pike & Adams Counties Community
Unit School District No. 4,
4.000%, 12/01/2024 (Insured by BAM)		345,000		382,457
Plano Special Service Areas No. 3 & 4,
4.000%, 03/01/2030 (Callable 03/01/2025)		280,000		316,627
Prospect Heights Park District,
4.000%, 12/01/2021 (Insured by BAM)		330,000		341,095
Regional Transportation Authority:
6.250%, 07/01/2021 (Insured by AGM)		675,000		694,946
5.750%, 06/01/2023 (Insured by AGM)		175,000		188,809
Sales Tax Securitization Corp.:
5.000%, 01/01/2022		2,035,000		2,099,754
5.000%, 01/01/2024		200,000		222,996
Shelby Christian Macon Counties
Community School District No. 21:
4.000%, 12/01/2025
(Callable 12/01/2023) (Insured by AGM)		400,000		438,792
4.000%, 12/01/2026
(Callable 12/01/2023) (Insured by AGM)		435,000		475,290
Southwestern Illinois Development Authority,
7.125%, 11/01/2030 (Pre-refunded to 11/01/2023)		195,000		231,824
St. Charles Public Library District,
4.000%, 11/01/2028 (Callable 11/01/2024)		455,000		505,437
St. Clair County Community Consolidated School District:
0.000%, 12/01/2021		485,000		481,552
0.000%, 12/01/2022		190,000		186,722
St. Clair County School District No. 119:
5.000%, 04/01/2022 (Insured by AGM)		350,000		369,918
5.000%, 04/01/2023 (Insured by AGM)		300,000		330,138
St. Clair County Township High School District No. 203,
4.000%, 12/01/2022		400,000		425,336
State of Illinois:
4.875%, 05/01/2021		500,000		506,240
5.000%, 08/01/2021		190,000		194,313
5.000%, 01/01/2022 (Callable 02/01/2021)		145,000		145,410
5.000%, 03/01/2022		55,000		57,480
5.125%, 05/01/2022		1,500,000		1,577,835
6.500%, 06/15/2022		180,000		185,496
5.000%, 06/15/2023		270,000		293,711
5.000%, 06/15/2023		670,000		728,839
5.500%, 07/01/2024 (Callable 07/01/2023)		835,000		910,092
3.750%, 06/15/2025 (Callable 06/15/2021)		310,000		313,339

The accompanying notes are an integral part of these financial statements.

Page 240

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
State of Illinois: (cont.)
4.000%, 06/15/2026 (Callable 06/15/2021)	$	365,000	$	368,986
6.000%, 06/15/2026		200,000		247,602
Tender Option Bond Trust:
0.310%, 12/01/2050
(Optional Put Date 01/07/2021)(1)(3)		1,000,000		1,000,000
0.310%, 12/01/2055
(Optional Put Date 01/07/2021)(1)(3)		3,450,000		3,450,000
United City of Yorkville IL,
4.050%, 12/01/2027 (Callable 12/01/2023)		120,000		129,983
University of Illinois:
5.000%, 10/01/2021		330,000		340,362
5.000%, 03/15/2022		50,000		52,528
5.000%, 04/01/2026		1,905,000		2,319,490
5.000%, 04/01/2027		2,000,000		2,495,400
Upper Illinois River Valley Development Authority:
5.000%, 12/01/2022		680,000		734,101
5.000%, 12/01/2023		400,000		447,928
Village of Calumet Park IL,
5.250%, 12/01/2029
(Callable 12/01/2024) (Insured by BAM)		500,000		571,170
Village of Crestwood IL:
4.000%, 12/15/2021 (Insured by BAM)		250,000		257,992
4.000%, 12/15/2021 (Insured by BAM)		500,000		515,985
4.000%, 12/15/2023 (Insured by BAM)		540,000		589,205
4.500%, 12/15/2025
(Callable 12/15/2022) (Insured by BAM)		60,000		64,484
Village of Lansing IL:
5.000%, 03/01/2023 (Insured by AGM)		275,000		297,957
5.000%, 03/01/2024 (Insured by BAM)		230,000		257,651
Village of Lyons IL,
5.000%, 12/01/2025
(Callable 12/01/2022) (Insured by BAM)		25,000		27,213
Village of Matteson IL,
8.000%, 12/01/2029 (Pre-refunded to 06/01/2022)(7)		295,000		322,043
Village of Oak Park IL,
4.000%, 11/01/2021		245,000		252,274
Village of Orland Hills IL:
4.000%, 12/01/2022 (Insured by BAM)		145,000		153,585
4.000%, 12/01/2023 (Insured by BAM)		130,000		141,226
Village of Rantoul IL,
4.300%, 01/01/2025 (Callable 01/01/2023)		125,000		134,362
Village of Richton Park IL,
4.000%, 12/01/2022 (Insured by BAM)		80,000		84,378

The accompanying notes are an integral part of these financial statements.

Page 241

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Village of River Grove IL,
3.000%, 12/15/2021 (Insured by BAM)	$	120,000	$	122,581
Village of Sauk Village IL,
4.000%, 12/01/2024 (Insured by BAM)		1,260,000		1,400,364
Village of Stone Park IL:
4.000%, 02/01/2022 (Insured by BAM)		125,000		129,893
4.000%, 02/01/2023 (Insured by BAM)		130,000		136,173
4.000%, 02/01/2024 (Insured by BAM)		135,000		144,334
4.000%, 02/01/2025 (Insured by BAM)		140,000		152,664
4.000%, 02/01/2026 (Insured by BAM)		220,000		244,292
4.750%, 02/01/2028
(Callable 02/01/2023) (Insured by BAM)		50,000		52,841
Village of Sugar Grove IL,
3.000%, 12/15/2025 (Callable 12/15/2021)		225,000		230,256
Will County Community Consolidated
School District No. 70-C,
4.000%, 12/01/2022 (Insured by AGM)		270,000		288,433
Will County Community High School District No. 210:
0.000%, 01/01/2021 (Insured by AGM)		215,000		215,000
0.000%, 01/01/2022 (ETM) (Insured by AGM)		165,000		164,284
4.000%, 01/01/2022 (Insured by AGM)		600,000		614,070
0.000%, 01/01/2023 (ETM) (Insured by AGM)		365,000		361,463
0.000%, 01/01/2023 (Insured by AGM)		325,000		317,814
0.000%, 01/01/2024 (ETM) (Insured by AGM)		510,000		501,845
0.000%, 01/01/2024 (Insured by AGM)		275,000		265,339
5.000%, 01/01/2029 (Callable 01/01/2023)		35,000		37,079
Will County Community Unit School District No. 201-U,
0.000%, 11/01/2021 (Insured by NATL)		215,000		213,628
Will County Community Unit School District No. 365:
0.000%, 11/01/2021 (Insured by AGM)		200,000		199,246
0.000%, 11/01/2022 (ETM) (Insured by AGM)		45,000		44,788
Will County Elementary School District No. 122:
0.000%, 11/01/2021 (ETM) (Insured by AGM)		50,000		49,877
0.000%, 11/01/2023 (ETM) (Insured by AGM)		125,000		123,564
Will County School District No. 86,
3.000%, 03/01/2025 (Callable 03/01/2024)		600,000		643,128
Will County School District No. 88A:
5.250%, 01/01/2022 (ETM) (Insured by AGM)		315,000		323,735
5.250%, 01/01/2022 (Insured by AGM)		545,000		560,843
Will County Township High School District No. 204,
5.000%, 01/01/2023		195,000		209,960
Winnebago & Boone Counties School District No. 205:
0.000%, 02/01/2022		95,000		94,037
4.000%, 02/01/2028 (Callable 02/01/2023)		965,000		1,029,182

The accompanying notes are an integral part of these financial statements.

Page 242

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Woodford, Lasalle, Livingston, Etc. Counties
Community Unit School District No. 6:
4.000%, 12/01/2024 (Insured by BAM)	$	185,000	$	207,572
4.000%, 12/01/2025 (Insured by BAM)		200,000		229,516
4.000%, 12/01/2026 (Insured by BAM)		175,000		204,703
Total Illinois
(Cost $108,549,704)				110,512,504		6.9	%
Indiana
City of Goshen IN,
4.100%, 01/01/2021 (Insured by AGM)		470,000		470,000
City of Hobart IN,
3.000%, 07/01/2025 (Insured by ST AID)		395,000		418,526
City of Lawrence IN,
4.000%, 01/01/2022 (Insured by BAM)		400,000		413,872
City of Mishawaka IN,
5.000%, 03/01/2025 (Insured by AGM)		100,000		118,743
City of Muncie IN:
4.000%, 07/15/2022 (Insured by AGM)		110,000		114,905
4.000%, 01/15/2024 (Insured by AGM)		170,000		184,161
City of Valparaiso IN,
4.000%, 08/01/2026 (Callable 08/01/2023)		375,000		409,076
Clarksville Redevelopment Authority:
4.000%, 08/01/2021		155,000		158,150
4.000%, 02/01/2022		230,000		238,724
County of Lake IN,
4.000%, 07/15/2021 (Insured by AGM)		100,000		102,041
County of St. Joseph IN,
5.000%, 04/01/2024		1,000,000		1,122,630
County of Warrick IN,
1.625%, 06/01/2022
(Mandatory Tender Date 06/01/2021)(1)		500,000		502,620
Evansville Vanderburgh Public Library,
4.000%, 07/01/2021 (Insured by ST AID)		135,000		135,996
Fishers Redevelopment Authority:
4.000%, 01/15/2023		270,000		289,896
4.000%, 07/15/2023		275,000		300,168
Hammond Multi-School Building Corp.,
5.000%, 01/15/2025 (Insured by ST AID)		525,000		614,030
Indiana Bond Bank,
1.129%, 10/15/2022
(3 Month LIBOR USD + 0.970%)(2)		1,140,000		1,140,171
Indiana Finance Authority:
5.000%, 09/15/2022		60,000		63,364
5.000%, 10/01/2022		175,000		185,159

The accompanying notes are an integral part of these financial statements.

Page 243

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Indiana Finance Authority: (cont.)
5.250%, 10/01/2022 (Callable 10/01/2021)	$	800,000	$	829,448
5.000%, 02/01/2023		25,000		26,684
5.000%, 09/15/2023		75,000		81,607
5.000%, 09/15/2024		155,000		172,899
5.000%, 09/15/2025		325,000		370,152
3.000%, 10/01/2025 (Callable 10/01/2023)		95,000		93,347
3.000%, 10/01/2026 (Callable 10/01/2023)		95,000		92,740
2.250%, 12/01/2058 (Callable 01/01/2025)
(Mandatory Tender Date 07/01/2025)(1)		2,985,000		3,196,607
Indiana Health & Educational
Facilities Financing Authority:
1.750%, 11/15/2031 (Pre-refunded to 11/02/2021)(1)		5,000		5,060
1.750%, 11/15/2031
(Mandatory Tender Date 11/02/2021)(1)		370,000		374,477
Indiana Housing & Community Development Authority:
4.000%, 12/01/2027
(Callable 06/01/2021) (Insured by GNMA)		350,000		354,148
3.500%, 01/01/2049
(Callable 01/01/2029) (Insured by GNMA)		1,265,000		1,391,702
Indianapolis Local Public Improvement Bond Bank,
1.400%, 06/01/2021 (Callable 03/01/2021)		2,900,000		2,900,058
Jasper Hospital Authority,
4.125%, 11/01/2025 (Callable 11/01/2023)		2,025,000		2,195,039
Kankakee Valley Middle School Building Corp.,
5.000%, 07/15/2022 (Insured by ST AID)		215,000		230,871
Lafayette School Corp.,
4.000%, 01/15/2021 (Insured by ST AID)		280,000		280,277
Lake Central Multi-District School Building Corp.,
5.000%, 07/15/2026
(Pre-refunded to 01/15/2023) (Insured by ST AID)		585,000		641,669
Lake Station School Building Corp.,
3.000%, 07/15/2022
(Pre-refunded to 01/15/2022) (Insured by ST AID)		75,000		76,365
Marion High School Building Corp.:
3.000%, 01/15/2021 (Insured by ST AID)		115,000		115,086
4.000%, 01/15/2022 (Insured by ST AID)		170,000		176,469
4.000%, 07/15/2022 (Insured by ST AID)		135,000		142,609
4.000%, 01/15/2023 (Insured by ST AID)		215,000		230,615
4.000%, 01/15/2025 (Insured by ST AID)		200,000		226,160
Michigan City School Building Corp.,
5.000%, 07/15/2023 (Insured by ST AID)		350,000		385,924
Munster School Building Corp.:
5.000%, 01/15/2022 (Insured by ST AID)		205,000		214,401
5.000%, 07/15/2022 (Insured by ST AID)		215,000		229,603

The accompanying notes are an integral part of these financial statements.

Page 244

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Munster School Building Corp.: (cont.)
5.000%, 01/15/2023 (Insured by ST AID)	$	215,000	$	234,176
4.000%, 07/15/2023 (Insured by ST AID)		160,000		173,123
5.000%, 01/15/2024 (Insured by ST AID)		225,000		254,655
New Durham Township Metropolitan
School District School Building Corp.,
1.600%, 01/15/2021		80,000		80,024
Salem Middle School Building Corp.,
4.000%, 01/15/2024 (Insured by ST AID)		195,000		214,488
Shelbyville Central Renovation School Building Corp.,
5.000%, 07/15/2022 (Insured by ST AID)		260,000		278,613
Starke County Building Corp.,
4.000%, 08/01/2028
(Pre-refunded to 02/01/2022) (Insured by ST AID)		700,000		727,706
Town of Rossville IN,
3.500%, 07/01/2023		115,000		121,655
Vinton-Tecumseh School Building Corp.:
4.000%, 07/15/2021 (Insured by ST AID)		220,000		224,195
4.000%, 07/15/2022 (Insured by ST AID)		385,000		406,090
5.000%, 01/15/2023 (Insured by ST AID)		145,000		158,458
Wabash City Schools Building Corp.:
4.000%, 07/15/2024 (Insured by ST AID)		110,000		123,219
4.000%, 01/15/2025 (Insured by ST AID)		140,000		159,149
4.000%, 07/15/2025 (Insured by ST AID)		240,000		276,749
Washington Indiana Elementary School Building Corp.,
3.000%, 01/15/2024 (Insured by ST AID)		550,000		574,514
West Washington School Corp.:
2.000%, 01/15/2022 (Insured by ST AID)		125,000		126,817
2.000%, 07/15/2022 (Insured by ST AID)		195,000		199,475
Westfield High School Building Corp.,
5.000%, 01/15/2024 (Insured by ST AID)		200,000		226,296
Total Indiana
(Cost $26,065,984)				26,575,651		1.6	%
Iowa
Bondurant-Farrar Community School District,
3.000%, 06/01/2023 (Insured by MAC)		110,000		116,386
City of Cedar Rapids IA,
0.158%, 08/15/2029 (Insured by AMBAC)(1)(5)		6,650,000		6,400,625
City of Coralville IA:
4.000%, 06/01/2024		300,000		299,760
4.000%, 06/01/2025 (Callable 06/01/2024)		455,000		453,758
City of New Hampton IA:
3.000%, 06/01/2022 (Insured by BAM)		130,000		134,452
3.000%, 06/01/2023 (Insured by BAM)		135,000		142,737

The accompanying notes are an integral part of these financial statements.

Page 245

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Waverly IA,
2.500%, 12/31/2022 (Callable 07/01/2022)	$	2,750,000	$	2,799,720
County of Adair IA:
2.000%, 06/01/2022		580,000		593,404
2.000%, 06/01/2023		730,000		757,988
Iowa Finance Authority:
3.500%, 07/01/2046
(Callable 01/01/2026) (Insured by GNMA)		155,000		165,160
4.000%, 07/01/2047
(Callable 07/01/2027) (Insured by GNMA)		810,000		886,845
4.000%, 07/01/2047
(Callable 07/01/2028) (Insured by GNMA)		1,045,000		1,194,226
2.875%, 05/15/2049 (Callable 01/21/2021)		900,000		908,703
Iowa Higher Education Loan Authority,
3.750%, 05/19/2021		4,000,000		4,021,720
Iowa Western Community College,
3.000%, 06/01/2021		500,000		504,585
Lake Panorama Improvement Zone:
3.000%, 06/01/2021		385,000		388,561
3.000%, 06/01/2022		395,000		407,178
3.000%, 06/01/2023		405,000		425,918
3.000%, 06/01/2024		420,000		449,598
3.000%, 06/01/2025		430,000		467,023
West Monona Community School District,
2.000%, 06/01/2021 (Callable 02/01/2021)		280,000		280,305
Total Iowa
(Cost $21,536,427)				21,798,652		1.4	%
Kansas
City of Derby KS,
3.900%, 03/01/2037 (Callable 03/01/2025)		1,300,000		1,318,902
City of Lenexa KS,
1.625%, 09/01/2021 (Callable 02/01/2021)		275,000		275,193
City of Washington KS,
2.000%, 12/01/2022 (Callable 02/01/2021)		1,860,000		1,862,213
City of Wichita KS,
3.000%, 09/01/2023 (Callable 09/01/2022)		115,000		117,425
Kansas Independent College Finance Authority:
5.000%, 05/01/2021		3,900,000		3,929,640
5.250%, 05/01/2021		825,000		831,254
Kansas Municipal Energy Agency,
5.000%, 04/01/2022 (Insured by BAM)		515,000		544,839
Public Building Commission of Johnson County,
5.000%, 09/01/2023		1,360,000		1,532,706

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Reno County Unified School District No. 313,
4.000%, 09/01/2030 (Pre-refunded to 09/01/2022)	$	200,000	$	212,554
Total Kansas
(Cost $10,435,835)				10,624,726		0.7	%
Kentucky
City of Somerset KY,
4.000%, 11/01/2026 (Callable 11/01/2021)		205,000		211,086
County of Carroll KY,
1.550%, 09/01/2042
(Mandatory Tender Date 09/01/2026)(1)		750,000		761,212
County of Kenton KY:
5.000%, 04/01/2024		375,000		429,765
5.000%, 04/01/2026		700,000		859,992
Danville Independent School District Finance Corp.,
2.000%, 03/01/2023 (Insured by ST AID)		235,000		239,239
Frankfort Independent School District Finance Corp.,
2.050%, 08/01/2024 (Insured by ST AID)		1,205,000		1,240,487
Harlan County School District Finance Corp.,
3.000%, 08/01/2025
(Callable 02/01/2025) (Insured by ST AID)		1,150,000		1,248,256
Kentucky Association of Counties Finance Corp.,
4.000%, 02/01/2028		240,000		288,338
Kentucky Economic Development Finance Authority:
0.000%, 12/01/2022 (ETM) (Insured by AGC)		75,000		74,488
0.000%, 10/01/2024 (Insured by NATL)		945,000		904,082
0.000%, 12/01/2024 (ETM) (Insured by AGC)		60,000		58,933
0.000%, 10/01/2025 (Insured by NATL)		270,000		253,878
5.000%, 06/01/2026		240,000		275,592
Kentucky Public Energy Authority:
4.000%, 01/01/2049 (Callable 10/01/2024)
(Mandatory Tender Date 01/01/2025)(1)		4,655,000		5,232,592
1.216%, 12/01/2049 (1 Month LIBOR USD + 1.120%)
(Callable 03/01/2025)
(Mandatory Tender Date 06/01/2025)(2)		3,850,000		3,878,259
1.396%, 12/01/2049 (1 Month LIBOR USD + 1.300%)
(Callable 03/01/2025)
(Mandatory Tender Date 06/01/2025)(2)		2,000,000		2,029,280
4.000%, 12/01/2049 (Callable 03/01/2025)
(Mandatory Tender Date 06/01/2025)(1)		5,720,000		6,516,224
4.000%, 12/01/2050 (Callable 03/01/2026)
(Mandatory Tender Date 06/01/2026)(1)		1,685,000		1,961,172
Kentucky State Property & Building Commission:
5.000%, 11/01/2021 (Insured by ST AID)		250,000		259,578
5.000%, 05/01/2028		300,000		382,476

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Kentucky Turnpike Authority,
4.000%, 07/01/2026	$	1,000,000	$	1,145,230
Louisville & Jefferson County Metropolitan Government:
5.000%, 12/01/2022 (Pre-refunded to 06/01/2022)		1,020,000		1,087,932
5.000%, 10/01/2027 (Callable 10/01/2023)		500,000		558,470
Magoffin County Justice Center Corp.,
3.000%, 05/01/2023		345,000		362,385
Murray State University:
5.000%, 09/01/2021 (Insured by ST AID)		285,000		293,707
5.000%, 09/01/2022 (Insured by ST AID)		410,000		441,443
5.000%, 09/01/2023 (Insured by ST AID)		435,000		482,998
University of Louisville:
5.000%, 03/01/2021 (Insured by ST AID)		105,000		105,645
5.000%, 03/01/2022 (Insured by ST AID)		525,000		548,814
Total Kentucky
(Cost $30,419,522)				32,131,553		2.0	%
Louisiana
Calcasieu Parish Fire Protection District No. 1:
3.500%, 03/01/2022 (Insured by BAM)		145,000		150,108
4.000%, 03/01/2024 (Insured by BAM)		155,000		171,029
Calcasieu Parish School Board,
5.000%, 02/01/2025 (Pre-refunded to 02/01/2022)		115,000		120,973
Calcasieu Parish School District No. 23:
5.000%, 09/01/2022 (Insured by BAM)		85,000		91,372
5.000%, 09/01/2023 (Insured by BAM)		175,000		196,031
5.000%, 09/01/2024 (Insured by BAM)		250,000		290,633
Calcasieu Parish School District No. 30:
2.500%, 02/15/2022		225,000		230,132
4.000%, 02/15/2023 (Insured by AGM)		125,000		133,983
Calcasieu Parish School District No. 34,
2.000%, 11/01/2022		425,000		437,963
City of New Iberia LA,
4.500%, 03/01/2022
(Callable 03/01/2021) (Insured by AGM)		865,000		870,450
City of Shreveport LA:
5.000%, 08/01/2023 (Insured by BAM)		165,000		182,604
5.000%, 03/01/2024 (Insured by BAM)		435,000		496,030
5.000%, 09/01/2024		1,000,000		1,116,580
East Ouachita Parish School District:
2.500%, 03/01/2022		435,000		446,079
2.500%, 03/01/2024		200,000		211,396
Ernest N Morial New Orleans Exhibition Hall Authority,
5.000%, 07/15/2021		265,000		270,891
Greater Ouachita Water Co.,
5.000%, 09/01/2022 (Insured by BAM)		300,000		322,125

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Jefferson Sales Tax District:
5.000%, 12/01/2023 (Insured by AGM)	$	550,000	$	620,989
5.000%, 12/01/2024 (Insured by AGM)		575,000		673,020
Louisiana Local Government Environmental
Facilities & Community Development Authority:
5.000%, 08/01/2024 (Callable 08/01/2023)		185,000		203,069
5.750%, 09/01/2035 (Pre-refunded to 09/01/2023)		75,000		85,846
Louisiana Public Facilities Authority:
5.000%, 10/01/2023		705,000		758,446
5.500%, 05/15/2027 (Pre-refunded to 05/15/2026)		2,015,000		2,428,720
Louisiana Stadium & Exposition District:
5.000%, 07/03/2023 (Callable 01/01/2023)		2,950,000		3,181,250
5.000%, 07/01/2024 (Callable 07/01/2023)		2,065,000		2,266,007
5.000%, 07/01/2025 (Callable 07/01/2023)		940,000		1,031,011
Louisiana State University &
Agricultural & Mechanical College,
5.000%, 07/01/2027
(Callable 07/01/2026) (Insured by BAM)		340,000		412,563
New Orleans Aviation Board,
5.000%, 10/01/2025 (Insured by AGM)		200,000		238,640
Parish of St. Charles LA,
4.000%, 12/01/2040
(Mandatory Tender Date 06/01/2022)(1)		2,900,000		3,011,099
Regional Transit Authority,
0.000%, 12/01/2021 (ETM) (Insured by NATL)		35,000		34,902
St. Landry Parish Road District No. 1,
3.250%, 03/01/2025
(Callable 03/01/2024) (Insured by BAM)		210,000		227,417
St. Tammany Parish Recreation District No. 14,
2.250%, 04/01/2023		225,000		234,356
State of Louisiana:
5.000%, 05/01/2024 (Pre-refunded to 05/01/2022)		345,000		366,856
5.000%, 06/15/2034 (Callable 06/15/2024)		60,000		68,511
Total Louisiana
(Cost $20,943,535)				21,581,081		1.3	%
Maine
Maine Health & Higher Educational Facilities Authority,
5.000%, 07/01/2027		2,365,000		2,987,633
Maine State Housing Authority:
2.700%, 11/15/2029 (Callable 11/15/2025)		615,000		653,315
3.500%, 11/15/2045 (Callable 05/15/2025)		20,000		21,012
4.000%, 11/15/2045 (Callable 11/15/2025)		260,000		275,285
4.000%, 11/15/2046 (Callable 05/15/2026)		1,575,000		1,690,463
3.500%, 11/15/2047 (Callable 11/15/2026)		1,000,000		1,071,170

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Maine State Housing Authority: (cont.)
4.000%, 11/15/2049 (Callable 05/15/2028)	$	1,440,000	$	1,590,149
4.000%, 11/15/2050 (Callable 05/15/2029)		1,865,000		2,113,642
Total Maine
(Cost $10,101,399)				10,402,669		0.6	%
Maryland
City of Baltimore MD,
5.000%, 07/01/2024 (ETM)		100,000		110,125
County of Baltimore MD,
3.000%, 09/01/2025 (Callable 09/01/2022)		950,000		990,679
County of Washington MD,
5.000%, 01/01/2022		415,000		428,620
Maryland Community Development Administration,
3.250%, 09/01/2050 (Callable 09/01/2029)		5,330,000		5,905,747
Maryland Health & Higher
Educational Facilities Authority:
4.000%, 01/01/2023		580,000		612,561
5.000%, 07/01/2023		850,000		939,607
5.000%, 07/01/2024		1,775,000		2,035,286
5.000%, 01/01/2026(6)		495,000		561,043
5.000%, 01/01/2027(6)		430,000		497,734
5.000%, 07/01/2027 (ETM) (Insured by AMBAC)		2,370,000		2,767,046
Montgomery County Housing Opportunities Commission,
4.000%, 07/01/2048 (Callable 07/01/2026)		350,000		381,654
State of Maryland,
5.000%, 08/01/2033 (Callable 08/01/2030)		1,520,000		2,086,291
Total Maryland
(Cost $17,086,033)				17,316,393		1.1	%
Massachusetts
Massachusetts Development Finance Agency:
5.000%, 07/01/2022 (Callable 07/01/2021)		1,735,000		1,770,568
3.500%, 10/01/2022(3)		540,000		551,804
5.000%, 10/01/2022 (Insured by AGM)		200,000		215,380
5.000%, 12/01/2023		190,000		214,877
5.000%, 12/01/2024		500,000		585,445
5.000%, 07/01/2025		365,000		403,770
5.250%, 07/01/2033
(Pre-refunded to 07/01/2021) (Insured by AGM)		1,025,000		1,050,430
Massachusetts Housing Finance Agency:
4.000%, 12/01/2044 (Callable 06/01/2025)		100,000		106,263
4.000%, 12/01/2048
(Callable 06/01/2027) (Insured by GNMA)		845,000		924,591
4.000%, 12/01/2048
(Callable 06/01/2027) (Insured by GNMA)		540,000		586,440
4.000%, 06/01/2049 (Callable 12/01/2028)		940,000		1,043,757

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Massachusetts Transportation Trust,
5.000%, 01/01/2039
(Mandatory Tender Date 01/01/2023)(1)	$	3,825,000	$	4,179,616
Town of Ashburnham MA,
4.250%, 07/01/2021
(Callable 02/01/2021) (Insured by AGC)		125,000		125,345
Total Massachusetts
(Cost $11,482,890)				11,758,286		0.7	%
Michigan
Bad Axe Public Schools,
4.000%, 05/01/2027
(Callable 05/01/2024) (Insured by Q-SBLF)		630,000		700,428
Battle Creek Tax Increment Finance Authority,
4.300%, 12/01/2028 (Callable 02/01/2021)		500,000		501,395
City of Allen Park Brownfield Redevelopment Authority:
4.000%, 05/01/2022 (Insured by BAM)		600,000		628,860
4.000%, 05/01/2023 (Insured by BAM)		620,000		667,120
4.000%, 05/01/2024 (Insured by BAM)		320,000		353,466
City of Allen Park MI:
2.000%, 05/01/2022 (Insured by BAM)		220,000		222,649
4.000%, 09/01/2022 (Insured by BAM)		250,000		264,022
4.000%, 05/01/2023 (Insured by BAM)		115,000		123,823
4.000%, 09/01/2023 (Insured by BAM)		300,000		326,226
City of Detroit MI,
5.000%, 04/01/2021		650,000		655,447
City of Kalamazoo MI,
5.000%, 10/01/2023		50,000		55,960
Comstock Public Schools,
5.000%, 11/01/2023 (Insured by AGM)		240,000		270,977
Davison Community Schools,
3.000%, 05/01/2022		190,000		196,764
Detroit Wayne County Stadium Authority,
5.000%, 10/01/2026
(Callable 10/01/2022) (Insured by AGM)		25,000		26,832
Essexville-Hampton Public Schools,
4.000%, 05/01/2022 (Insured by Q-SBLF)		325,000		341,520
Ferris State University:
5.000%, 10/01/2024		950,000		1,095,625
5.000%, 10/01/2029		1,500,000		1,921,680
Fruitport Community Schools:
4.000%, 05/01/2021 (Insured by Q-SBLF)		100,000		101,164
4.000%, 05/01/2023 (Insured by Q-SBLF)		135,000		146,304
Holly Area School District,
4.000%, 05/01/2025 (Insured by Q-SBLF)		450,000		517,342

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Ingham County Brownfield Redevelopment Authority,
4.125%, 08/01/2024
(Callable 02/01/2021) (Insured by AGM)	$	215,000	$	215,608
Michigan Finance Authority:
5.000%, 11/01/2022		100,000		108,228
5.000%, 09/01/2023		185,000		202,999
5.000%, 09/01/2024		200,000		226,126
4.000%, 10/01/2024		1,350,000		1,420,942
5.000%, 07/01/2025
(Callable 07/01/2024) (Insured by AGM)		1,595,000		1,843,836
5.000%, 09/01/2025		200,000		232,614
4.000%, 05/01/2026		60,000		70,034
5.000%, 09/01/2026		200,000		237,790
5.500%, 12/01/2026 (Callable 06/01/2025)		335,000		409,206
5.000%, 09/01/2027		280,000		338,624
3.500%, 11/15/2044
(Mandatory Tender Date 11/15/2022)(1)		2,010,000		2,117,716
4.000%, 11/15/2044
(Mandatory Tender Date 08/15/2024)(1)		2,405,000		2,722,845
5.000%, 12/01/2044
(Mandatory Tender Date 02/01/2025)(1)		1,525,000		1,798,478
Michigan State Building Authority,
0.170%, 10/15/2042 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		1,000,000		1,000,000
Michigan State Hospital Finance Authority:
1.900%, 11/15/2047
(Mandatory Tender Date 04/01/2021)(1)		335,000		336,293
4.000%, 11/15/2047
(Mandatory Tender Date 07/01/2024)(1)		350,000		394,716
Michigan State Housing Development Authority:
4.000%, 06/01/2046 (Callable 12/01/2024)		1,015,000		1,076,144
3.500%, 06/01/2047 (Callable 06/01/2026)		3,650,000		3,905,427
3.500%, 12/01/2050 (Callable 06/01/2029)		1,985,000		2,213,632
Michigan Strategic Fund,
7.000%, 05/01/2021 (Insured by AMBAC)		2,320,000		2,370,158
Pinckney Community Schools:
5.000%, 05/01/2021 (Insured by Q-SBLF)		100,000		101,502
4.000%, 05/01/2028
(Callable 05/01/2026) (Insured by Q-SBLF)		1,000,000		1,162,210
South Lake Schools:
4.000%, 11/01/2021 (Insured by Q-SBLF)		425,000		437,223
4.000%, 05/01/2022 (Insured by Q-SBLF)		290,000		303,004
4.000%, 11/01/2023 (Insured by Q-SBLF)		500,000		546,520
Tri-County Area School District:
4.000%, 05/01/2021 (Insured by AGM)		520,000		526,089

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Tri-County Area School District: (cont.)
4.000%, 05/01/2022 (Insured by AGM)	$	640,000	$	670,784
4.000%, 05/01/2023 (Insured by AGM)		705,000		762,493
Western Michigan University,
5.000%, 11/15/2025 (Callable 11/15/2021)		25,000		25,992
Total Michigan
(Cost $36,044,762)				36,894,837		2.3	%
Minnesota
Brainerd Independent School District No. 181,
4.000%, 02/01/2027 (Insured by SD CRED PROG)		685,000		821,020
City of Crosslake MN,
3.250%, 02/01/2027 (Callable 02/01/2023)		40,000		42,232
City of Maple Grove MN,
4.000%, 05/01/2022		610,000		632,332
City of Minneapolis MN/St. Paul
Housing & Redevelopment Authority,
0.105%, 08/01/2028 (Insured by NATL)(1)(5)		100,000		97,125
City of Plato MN,
4.000%, 04/01/2022		265,000		275,295
City of St. Louis Park MN,
0.950%, 09/01/2023 (Callable 02/01/2021)
(Mandatory Tender Date 09/01/2021)(1)		1,675,000		1,675,620
Duluth Independent School District No. 709,
5.000%, 02/01/2023 (Insured by SD CRED PROG)		815,000		886,272
Fergus Falls Independent School District No. 544:
2.500%, 02/01/2021		160,000		160,216
2.500%, 02/01/2022		145,000		148,191
2.500%, 02/01/2024		105,000		110,370
Housing & Redevelopment
Authority of The City of St. Paul:
5.000%, 07/01/2021		80,000		81,704
0.950%, 11/01/2022 (Callable 05/01/2021)
(Mandatory Tender Date 11/01/2021)(1)		1,000,000		1,001,670
5.000%, 11/15/2025		465,000		562,734
5.000%, 12/01/2025		285,000		329,953
5.000%, 12/01/2027		1,065,000		1,269,341
Maple River Independent School District No. 2135:
5.000%, 02/01/2022 (Insured by SD CRED PROG)		80,000		84,110
5.000%, 02/01/2023 (Insured by SD CRED PROG)		515,000		565,197
5.000%, 02/01/2024 (Insured by SD CRED PROG)		915,000		1,046,385
5.000%, 02/01/2025 (Insured by SD CRED PROG)		395,000		469,880
5.000%, 02/01/2026 (Insured by SD CRED PROG)		1,000,000		1,234,290
Minneapolis-Saint Paul Metropolitan Airports Commission:
5.000%, 01/01/2022		1,050,000		1,097,838
5.000%, 01/01/2025		310,000		366,510

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Minnesota Higher Education Facilities Authority:
3.000%, 12/01/2021	$	275,000	$	278,743
5.000%, 04/01/2023		100,000		109,059
3.000%, 12/01/2023		150,000		155,598
5.000%, 03/01/2024		160,000		175,522
4.000%, 12/01/2024		100,000		108,460
5.000%, 03/01/2027 (Callable 03/01/2026)		250,000		286,587
5.000%, 10/01/2027		750,000		934,357
5.000%, 10/01/2028 (Callable 10/01/2027)		1,445,000		1,789,286
5.000%, 10/01/2029 (Callable 10/01/2027)		770,000		947,770
Minnesota Housing Finance Agency:
2.900%, 01/01/2025 (Insured by GNMA)		30,000		32,175
3.900%, 07/01/2030
(Callable 01/01/2022) (Insured by GNMA)		185,000		189,593
4.000%, 01/01/2038 (Callable 01/01/2024)		620,000		663,456
0.620%, 07/01/2041
(SIFMA Municipal Swap Index + 0.550%)
(Callable 07/01/2023)
(Mandatory Tender Date 12/12/2023)
(Insured by GNMA)(2)		220,000		220,451
0.500%, 01/01/2045
(SIFMA Municipal Swap Index + 0.430%)
(Callable 01/01/2023)
(Mandatory Tender Date 07/03/2023)
�� (Insured by GNMA)(2)		6,595,000		6,588,801
3.500%, 07/01/2046
(Callable 07/01/2025) (Insured by GNMA)		3,370,000		3,600,171
4.000%, 01/01/2047
(Callable 01/01/2026) (Insured by GNMA)		225,000		241,353
4.000%, 07/01/2047
(Callable 01/01/2027) (Insured by GNMA)		435,000		471,227
Moorhead Independent School District No. 152:
4.000%, 02/01/2021		220,000		220,574
4.000%, 02/01/2022		230,000		238,876
4.000%, 02/01/2023		235,000		251,281
4.000%, 02/01/2024		245,000		269,600
4.000%, 02/01/2025		255,000		288,599
Northern Municipal Power Agency,
5.000%, 01/01/2027 (Callable 01/01/2023)		220,000		238,894
Plymouth Intermediate District No. 287,
5.000%, 05/01/2022		105,000		111,507
Shakopee Independent School District No. 720:
5.000%, 02/01/2023 (Insured by SD CRED PROG)		675,000		739,908
0.000%, 02/01/2027 (Insured by SD CRED PROG)		6,660,000		6,257,736

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
St. Cloud Metropolitan Transit Commission,
3.000%, 06/01/2024 (Callable 02/01/2021)	$	300,000	$	300,522
University of Minnesota,
5.500%, 07/01/2021 (ETM)		110,000		112,698
Total Minnesota
(Cost $38,225,329)				38,781,089		2.4	%
Mississippi
Brookhaven School District,
3.000%, 08/01/2023 (Insured by MAC)		200,000		212,494
City of Oxford MS,
3.000%, 09/01/2024		250,000		250,570
City of Ridgeland MS:
3.000%, 10/01/2021		725,000		733,381
3.000%, 10/01/2022		1,420,000		1,456,153
3.000%, 10/01/2023		1,335,000		1,387,986
3.000%, 10/01/2024		1,505,000		1,576,262
City of Yazoo MS:
3.000%, 03/01/2021 (Insured by MAC)		105,000		105,338
3.000%, 03/01/2025 (Insured by MAC)		125,000		137,494
3.000%, 03/01/2026 (Insured by MAC)		130,000		145,628
Copiah-Lincoln Community College District:
2.000%, 09/01/2022 (Insured by MAC)		165,000		169,212
2.000%, 09/01/2023 (Insured by MAC)		95,000		98,671
2.000%, 09/01/2025 (Insured by MAC)		205,000		217,944
2.000%, 09/01/2026
(Callable 09/01/2025) (Insured by MAC)		110,000		116,423
County of Lowndes MS,
6.800%, 04/01/2022		50,000		53,729
Marshall County School District,
3.000%, 06/01/2022 (Insured by BAM)		275,000		283,280
Mississippi Business Finance Corp.:
2.500%, 04/01/2022 (Callable 04/01/2021)		3,550,000		3,564,449
3.200%, 09/01/2028 (Callable 03/13/2024)		2,460,000		2,608,879
Mississippi Development Bank:
3.000%, 07/01/2021 (Insured by ST AID)		730,000		731,584
4.000%, 07/01/2022		170,000		178,347
5.000%, 03/01/2024 (Insured by AGM)		50,000		56,227
5.000%, 11/01/2025 (Insured by BAM)		215,000		258,931
Mississippi Home Corp.,
3.500%, 12/01/2049
(Callable 12/01/2028) (Insured by GNMA)		975,000		1,071,428
State of Mississippi:
5.000%, 10/15/2025		205,000		241,962
5.000%, 10/15/2028 (Callable 10/15/2025)		1,255,000		1,462,426
Total Mississippi
(Cost $16,980,261)				17,118,798		1.1	%

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Missouri
Arnold Retail Corridor
Transportation Development District,
3.000%, 11/01/2028 (Callable 11/01/2024)	$	1,165,000	$	1,157,730
City of Berkeley MO,
3.000%, 05/01/2024 (Insured by BAM)		205,000		217,784
City of St. Louis MO,
5.000%, 07/01/2023 (Insured by AGM)		415,000		461,148
Hanley Road Corridor
Transportation Development District:
1.000%, 10/01/2027		550,000		548,119
1.625%, 10/01/2033 (Callable 10/01/2029)		700,000		700,028
2.000%, 10/01/2039 (Callable 10/01/2029)		750,000		750,285
Health & Educational Facilities
Authority of the State of Missouri:
4.000%, 04/01/2021		500,000		502,545
4.000%, 06/01/2021		175,000		177,455
5.000%, 09/01/2021		235,000		240,419
0.000%, 09/01/2022 (ETM) (Insured by NATL)		55,000		54,502
5.000%, 09/01/2023		285,000		311,628
5.000%, 06/01/2024		235,000		270,542
5.000%, 09/01/2024		295,000		332,524
Industrial Development Authority of the City of St. Louis,
3.875%, 11/15/2029 (Callable 11/15/2026)		970,000		908,473
Joplin Industrial Development Authority,
4.250%, 02/15/2021 (ETM)		70,000		70,304
Metropolitan Park and Recreation District,
5.000%, 12/30/2025 (Callable 12/30/2023)		1,000,000		1,105,230
Missouri Association of Rural Education,
3.000%, 04/15/2022 (Callable 02/01/2021)		300,000		300,441
Missouri Housing Development Commission,
3.400%, 11/01/2030
(Callable 11/01/2024) (Insured by GNMA)		210,000		225,298
Missouri Southern State University:
5.000%, 10/01/2026 (Insured by AGM)		105,000		124,742
5.000%, 10/01/2027 (Insured by AGM)		100,000		120,836
Move Rolla Transportation Development District,
3.750%, 06/01/2029 (Callable 06/01/2026)		265,000		282,145
Neosho R-V School District:
4.000%, 03/01/2022 (Insured by ST AID)		155,000		161,905
4.000%, 03/01/2023 (Insured by ST AID)		170,000		183,423
4.000%, 03/01/2024 (Insured by ST AID)		275,000		305,995
4.000%, 03/01/2025 (Insured by ST AID)		220,000		252,186
4.000%, 03/01/2026 (Insured by ST AID)		510,000		599,980

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Riverview Gardens School District,
4.000%, 04/01/2022 (Insured by ST AID)	$	380,000	$	397,906
St. Joseph Industrial Development Authority,
3.350%, 01/01/2024		175,000		172,891
St. Louis Land Clearance for Redevelopment Authority,
4.250%, 06/01/2026		2,040,000		2,237,125
State of Missouri Health & Educational Facilities Authority:
5.000%, 02/01/2022		265,000		276,043
5.000%, 06/01/2036 (Callable 12/01/2022)
(Mandatory Tender Date 06/01/2023)(1)		195,000		211,795
Trenton School District No. R-IX,
4.000%, 03/01/2022 (Insured by ST AID)		40,000		41,782
Total Missouri
(Cost $13,530,051)				13,703,209		0.8	%
Montana
City of Red Lodge MT:
2.000%, 07/01/2021 (Insured by BAM)		210,000		211,814
2.000%, 07/01/2022 (Insured by BAM)		195,000		200,068
2.000%, 07/01/2023 (Insured by BAM)		270,000		281,038
Montana Board of Housing:
4.000%, 12/01/2043 (Callable 12/01/2027)		890,000		970,625
4.000%, 06/01/2049
(Callable 12/01/2027) (Insured by FHA)		1,045,000		1,140,806
Montana Facility Finance Authority:
5.000%, 01/01/2023		100,000		109,083
4.000%, 07/01/2025		155,000		171,342
5.000%, 07/01/2025		110,000		132,059
4.000%, 07/01/2026		330,000		369,547
Total Montana
(Cost $3,462,245)				3,586,382		0.2	%
Nebraska
Central Plains Energy Project,
5.000%, 09/01/2032 (Callable 09/01/2022)		350,000		374,545
Public Power Generation Agency:
5.000%, 01/01/2029 (Callable 01/01/2025)		285,000		332,863
5.000%, 01/01/2031 (Callable 01/01/2025)		625,000		727,469
Scotts Bluff County School District No. 16,
5.000%, 12/01/2026 (Pre-refunded to 05/30/2022)		115,000		122,728
Total Nebraska
(Cost $1,547,276)				1,557,605		0.1	%
Nevada
City of Yerington NV,
1.625%, 11/01/2023 (Callable 11/01/2022)		7,000,000		7,093,240

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Clark County School District:
5.000%, 06/15/2021	$	1,040,000	$	1,061,309
5.000%, 06/15/2023		585,000		647,098
County of Clark NV,
5.000%, 07/01/2025		490,000		588,510
Las Vegas Redevelopment Agency,
5.000%, 06/15/2023		250,000		272,892
Lyon County School District,
5.000%, 04/01/2021		490,000		495,395
Nevada Housing Division,
4.000%, 10/01/2049
(Callable 10/01/2028) (Insured by GNMA)		960,000		1,071,322
Total Nevada
(Cost $11,086,295)				11,229,766		0.7	%
New Hampshire
New Hampshire Health and Education Facilities Authority:
3.150%, 04/01/2022 (Callable 11/01/2021)(3)		8,900,000		8,955,269
0.070%, 10/01/2030
(Callable 01/04/2021) (Optional Put Date 01/07/2021)(1)		2,400,000		2,400,000
Total New Hampshire
(Cost $11,356,171)				11,355,269		0.7	%
New Jersey
Atlantic City Board of Education:
3.400%, 08/15/2021(3)		2,026,000		2,057,403
3.400%, 08/15/2022(3)		2,087,000		2,164,782
3.400%, 08/15/2023(3)		2,171,000		2,294,465
3.400%, 08/15/2024(3)		793,000		851,658
Cape May County Industrial
Pollution Control Financing Authority,
6.800%, 03/01/2021 (Insured by NATL)		120,000		121,168
City of Atlantic City NJ:
5.000%, 03/01/2022 (Insured by BAM)		100,000		104,987
5.000%, 03/01/2024 (Insured by BAM)		300,000		339,867
City of Bayonne NJ,
5.000%, 07/15/2022 (Insured by AGM)		475,000		508,625
City of Newark NJ,
5.000%, 10/01/2022 (Insured by ST AID)		700,000		748,769
City of Trenton NJ:
4.000%, 07/15/2022 (Insured by AGM)		500,000		527,545
4.000%, 07/15/2023 (Insured by AGM)		200,000		217,616
City of Union City NJ:
5.000%, 11/01/2021 (Insured by ST AID)		530,000		546,287
5.000%, 11/01/2022 (Insured by ST AID)		505,000		538,976
5.000%, 11/01/2023 (Insured by ST AID)		435,000		479,753

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
County of Hudson NJ,
7.000%, 12/01/2021 (Insured by NATL)	$	5,280,000	$	5,550,970
New Jersey Economic Development Authority:
0.000%, 01/01/2021 (Insured by AMBAC)		130,000		130,000
3.250%, 01/01/2021		230,000		230,000
5.000%, 07/15/2021		100,000		102,186
5.250%, 12/15/2021 (Insured by NATL)		500,000		522,690
4.000%, 01/01/2022		660,000		671,873
0.000%, 07/01/2022 (ETM) (Insured by NATL)		25,000		24,833
5.000%, 07/15/2022		240,000		251,150
4.000%, 01/01/2023		50,000		51,781
5.000%, 09/01/2023 (Callable 03/01/2021)		485,000		488,395
5.000%, 06/15/2024		390,000		444,167
0.000%, 07/01/2024 (ETM) (Insured by NATL)		455,000		446,519
5.250%, 09/01/2024 (Callable 03/01/2021)		320,000		322,365
5.250%, 07/01/2025 (Insured by NATL)		380,000		451,087
5.000%, 03/01/2026 (Callable 03/01/2023)		1,180,000		1,275,875
5.000%, 06/15/2026 (Callable 06/15/2024)		400,000		450,036
5.250%, 09/01/2026 (Callable 03/01/2021)		585,000		589,323
5.000%, 06/15/2027 (Callable 06/15/2024)		1,050,000		1,177,701
5.000%, 03/01/2029 (Callable 03/01/2023)		500,000		536,510
3.125%, 07/01/2029 (Callable 07/01/2027)		140,000		141,397
5.000%, 03/01/2030 (Callable 03/01/2023)		735,000		787,729
4.000%, 07/01/2030 (Callable 02/01/2021)		500,000		501,215
5.000%, 03/01/2031 (Pre-refunded to 09/01/2022)		65,000		70,210
New Jersey Educational Facilities Authority:
5.000%, 07/01/2021		125,000		127,725
5.000%, 07/01/2022 (ETM)		150,000		160,815
New Jersey Health Care Facilities Financing Authority:
5.000%, 07/01/2025 (Insured by AGM)		55,000		64,752
0.170%, 07/01/2038 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		5,515,000		5,515,000
New Jersey Higher Education Student Assistance Authority,
2.375%, 12/01/2029 (Callable 06/01/2028)		2,385,000		2,478,826
New Jersey Housing & Mortgage Finance Agency:
1.500%, 09/01/2022
(Mandatory Tender Date 09/01/2021)(1)		4,000,000		4,028,240
4.500%, 10/01/2048 (Callable 10/01/2027)		770,000		868,206
4.750%, 10/01/2050 (Callable 04/01/2028)		1,350,000		1,537,069
New Jersey Transportation Trust Fund Authority:
5.500%, 12/15/2021 (Insured by AGM)		255,000		267,472
5.000%, 06/15/2023		3,995,000		4,395,459
5.000%, 12/15/2023		275,000		309,317
5.000%, 12/15/2023		620,000		697,370
5.250%, 12/15/2023		360,000		407,804

The accompanying notes are an integral part of these financial statements.

Page 259

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

		Principal				% of
		Amount		Value		Net Assets
New Jersey Transportation Trust Fund Authority: (cont.)
5.000%, 06/15/2024		$	800,000	$	909,104
0.000%, 12/15/2026 (Insured by AMBAC)			110,000		100,741
5.000%, 12/15/2026			1,390,000		1,679,287
North Hudson Sewerage Authority:
0.000%, 08/01/2021 (ETM) (Insured by NATL)			60,000		59,900
0.000%, 08/01/2025 (ETM) (Insured by NATL)			25,000		24,104
South Jersey Transportation Authority,
5.000%, 11/01/2029 (Pre-refunded to 11/01/2022)			125,000		135,644
State of New Jersey:
5.000%, 06/01/2024	��		7,350,000		8,458,895
5.000%, 06/01/2025			6,500,000		7,736,170
Tender Option Bond Trust,
0.220%, 07/01/2047
(Optional Put Date 01/07/2021)(1)(3)			600,000		600,000
Washington Township Municipal Utilities Authority:
0.000%, 12/15/2021 (Insured by NATL)			100,000		99,267
0.000%, 12/15/2023 (Insured by NATL)			25,000		24,256
Total New Jersey
(Cost $66,193,753)					67,405,336		4.2	%
New Mexico
City of Farmington NM,
1.875%, 04/01/2033
(Mandatory Tender Date 10/01/2021)(1)			200,000		201,966
New Mexico Hospital Equipment Loan Council,
4.750%, 07/01/2022			170,000		175,824
New Mexico Mortgage Finance Authority:
3.500%, 03/01/2045 (Callable 03/01/2026)			40,000		43,212
3.750%, 03/01/2048
(Callable 03/01/2027) (Insured by GNMA)			230,000		251,597
4.250%, 07/01/2049 (Callable 01/01/2028)			65,000		72,716
3.750%, 01/01/2050
(Callable 01/01/2029) (Insured by GNMA)			1,930,000		2,144,423
4.250%, 01/01/2050
(Callable 07/01/2028) (Insured by GNMA)			2,690,000		3,014,871
Total New Mexico
(Cost $5,649,611)					5,904,609		0.4	%
New York
Albany Capital Resource Corp.,
5.000%, 05/01/2027 (Callable 05/01/2026)			1,000,000		1,136,640
Albany County Capital Resource Corp.,
2.600%, 07/01/2025			970,000		937,553
BluePath TE Trust,
2.750%, 09/01/2026 (Callable 08/27/2021)(3)			1,067,285		1,094,465

The accompanying notes are an integral part of these financial statements.

Page 260

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Long Beach NY:
4.000%, 08/15/2025
(Callable 08/15/2022) (Insured by BAM)	$	100,000	$	105,674
5.000%, 09/01/2026		1,370,000		1,630,492
City of New York NY:
5.000%, 08/01/2022		185,000		198,627
5.000%, 10/01/2022 (Pre-refunded to 10/01/2021)		190,000		196,802
5.000%, 08/01/2038 (Callable 08/01/2023)
(Mandatory Tender Date 02/01/2024)(1)		5,500,000		6,131,070
0.010%, 10/01/2040 (Optional Put Date 01/04/2021)(1)		10,930,000		10,930,000
County of Rockland NY,
5.000%, 03/01/2023 (Insured by AGM)		415,000		457,147
County of Suffolk NY:
2.000%, 07/22/2021		9,000,000		9,057,330
5.000%, 05/01/2023		2,845,000		3,099,002
5.000%, 05/01/2027 (Callable 05/01/2024)		500,000		559,320
Dutchess County Local Development Corp.,
5.000%, 07/01/2026		1,000,000		1,205,770
Geneva Development Corp.:
5.000%, 09/01/2023 (Pre-refunded to 09/01/2022)		450,000		485,838
5.000%, 09/01/2023 (ETM)		30,000		33,803
5.000%, 09/01/2024 (Pre-refunded to 09/01/2023)		50,000		56,339
Hempstead Town Local Development Corp.,
5.000%, 07/01/2025 (Callable 07/01/2023)		815,000		898,782
Housing Development Corp.,
2.000%, 11/01/2057 (Callable 01/19/2021)
(Mandatory Tender Date 12/31/2021)(1)		1,775,000		1,775,834
Long Island Power Authority:
0.850%, 05/01/2033
(1 Month LIBOR USD + 0.750%) (Callable 10/01/2022)
(Mandatory Tender Date 10/01/2023)(2)		5,360,000		5,366,003
1.650%, 09/01/2049 (Callable 03/01/2024)
(Mandatory Tender Date 09/01/2024)(1)		1,805,000		1,875,576
Metropolitan Transportation Authority:
5.000%, 05/15/2021		615,000		621,451
5.000%, 09/01/2021		4,515,000		4,600,559
5.000%, 11/15/2021		1,075,000		1,102,090
4.000%, 02/01/2022		1,565,000		1,596,644
5.000%, 03/01/2022		445,000		466,814
5.000%, 05/15/2022		525,000		545,759
5.000%, 09/01/2022		3,250,000		3,405,545
5.000%, 11/15/2023		150,000		162,363
0.779%, 11/01/2032 (1 Month LIBOR USD + 0.680%)
(Mandatory Tender Date 04/06/2021)
(Insured by AGM)(2)		145,000		144,542

The accompanying notes are an integral part of these financial statements.

Page 261

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Monroe County Industrial Development Corp.,
5.000%, 06/01/2021	$	1,730,000	$	1,759,843
New York City Housing Development Corp.:
2.950%, 11/01/2045 (Callable 05/01/2025)
(Mandatory Tender Date 02/01/2026)
(Insured by FNMA)(1)		225,000		245,637
2.750%, 05/01/2050		300,000		312,318
2.100%, 11/01/2058 (Callable 02/01/2022)
(Mandatory Tender Date 07/03/2023)(1)		230,000		233,436
0.700%, 11/01/2060 (Callable 05/01/2023)
(Mandatory Tender Date 05/01/2025)(1)		5,000,000		5,000,450
New York City Water & Sewer System,
0.010%, 06/15/2033 (Callable 01/15/2021)
(Optional Put Date 01/04/2021)(1)		735,000		735,000
New York Liberty Development Corp.:
0.570%, 10/01/2035
(Optional Put Date 01/07/2021)(1)(3)		3,750,000		3,750,000
0.570%, 10/01/2035
(Optional Put Date 01/07/2021)(1)(3)		3,464,000		3,464,000
New York State Dormitory Authority:
5.000%, 12/15/2021		55,000		57,527
5.000%, 07/01/2028 (Callable 07/01/2025)		505,000		593,921
5.000%, 05/01/2048 (Callable 11/01/2025)
(Mandatory Tender Date 05/01/2026)(1)		2,375,000		2,834,111
New York State Energy Research & Development Authority,
2.625%, 04/01/2034
(Mandatory Tender Date 07/03/2023)(1)		2,865,000		3,022,289
New York State Housing Finance Agency:
1.600%, 11/01/2024 (Callable 12/01/2021)		5,815,000		5,878,093
0.750%, 11/01/2025 (Callable 01/01/2022)		5,000,000		5,001,750
New York Transportation Development Corp.,
5.000%, 12/01/2027		900,000		1,123,884
Oneida County Local Development Corp.,
5.000%, 12/01/2029
(Callable 12/01/2023) (Insured by AGM)		715,000		800,521
St. Lawrence County Industrial Development Agency:
5.000%, 07/01/2025 (Callable 01/01/2023)		235,000		253,713
5.000%, 07/01/2026		300,000		363,333
5.000%, 07/01/2027 (Callable 07/01/2026)		175,000		209,248
State of New York Mortgage Agency:
3.500%, 10/01/2043 (Callable 04/01/2023)		150,000		157,977
4.000%, 10/01/2046 (Callable 04/01/2025)		280,000		298,771
Town of Oyster Bay NY:
3.000%, 02/01/2022		3,260,000		3,344,825
4.000%, 02/15/2026 (Insured by BAM)		95,000		110,961

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Triborough Bridge & Tunnel Authority:
0.596%, 11/15/2027
(1 Month LIBOR USD + 0.500%)
(Callable 05/15/2021)
(Mandatory Tender Date 11/15/2021)(2)	$	2,540,000	$	2,539,314
0.796%, 01/01/2032
(1 Month LIBOR USD + 0.700%)
(Mandatory Tender Date 02/01/2021)(2)		7,985,000		7,986,597
Utility Debt Securitization Authority,
5.000%, 12/15/2025 (Callable 12/15/2023)		210,000		239,917
Total New York
(Cost $109,142,658)				110,195,270		6.8	%
North Carolina
Durham Housing Authority,
5.000%, 12/01/2035 (Pre-refunded to 12/01/2022)		265,000		283,781
North Carolina Capital Facilities Finance Agency,
5.000%, 06/01/2022 (Insured by AGC)		100,000		105,136
North Carolina Eastern Municipal Power Agency:
5.000%, 01/01/2021 (ETM)		890,000		890,000
6.000%, 01/01/2022 (ETM)		155,000		163,909
North Carolina Housing Finance Agency:
4.000%, 07/01/2048
(Callable 07/01/2027) (Insured by GNMA)		340,000		373,939
4.000%, 01/01/2050 (Callable 07/01/2028)		1,760,000		1,970,531
4.000%, 07/01/2050 (Callable 07/01/2029)		3,200,000		3,629,472
North Carolina Medical Care Commission:
5.750%, 01/01/2035 (Pre-refunded to 01/01/2021)		130,000		130,000
2.200%, 12/01/2048 (Callable 06/01/2022)
(Mandatory Tender Date 12/01/2022)(1)		1,845,000		1,889,428
North Carolina Turnpike Authority:
5.000%, 02/01/2024		8,650,000		9,803,737
5.000%, 01/01/2025		50,000		58,443
State of North Carolina,
5.000%, 05/01/2024 (Callable 05/01/2023)		1,250,000		1,388,525
University of North Carolina at Chapel Hill,
0.496%, 12/01/2041
(1 Month LIBOR USD + 0.400%)
(Callable 03/09/2022)
(Mandatory Tender Date 11/09/2022)(2)		5,000,000		5,003,050
Total North Carolina
(Cost $25,254,806)				25,689,951		1.6	%
North Dakota
City of Dickinson ND,
5.000%, 10/01/2025 (Callable 10/01/2021)		1,150,000		1,172,552

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Horace ND:
1.900%, 08/01/2022 (Callable 08/01/2021)	$	1,325,000	$	1,326,047
3.000%, 05/01/2025		250,000		271,585
3.000%, 05/01/2026		335,000		368,812
3.000%, 05/01/2027 (Callable 05/01/2026)		265,000		288,855
City of Mandan ND,
2.750%, 09/01/2041 (Callable 02/01/2021)		430,000		430,202
City of Watford City ND:
3.000%, 12/01/2021 (Insured by AGM)		1,980,000		2,020,491
3.000%, 12/01/2023 (Insured by AGM)		1,825,000		1,930,430
City of West Fargo ND:
5.000%, 05/01/2022		200,000		212,174
4.000%, 05/01/2023		305,000		329,650
4.000%, 05/01/2024		900,000		1,001,016
City of Williston ND,
4.250%, 07/15/2025 (Callable 07/15/2022)		775,000		813,463
County of Burleigh ND:
4.000%, 11/01/2021		1,000,000		1,025,660
2.750%, 02/01/2022 (Callable 01/21/2021)		10,000,000		10,001,700
4.000%, 11/01/2029
(Pre-refunded to 11/01/2022) (Insured by AGM)		400,000		427,556
4.500%, 07/01/2032 (Pre-refunded to 07/01/2022)		360,000		381,056
County of McKenzie ND:
5.000%, 08/01/2022		1,000,000		1,059,970
5.000%, 08/01/2023		2,300,000		2,523,123
County of Ward ND,
4.000%, 04/01/2024
(Callable 04/01/2023) (Insured by AGM)		400,000		429,524
Jamestown Park District,
2.900%, 07/01/2035 (Callable 01/19/2021)		1,025,000		1,025,728
North Dakota Housing Finance Agency:
4.000%, 07/01/2048 (Callable 01/01/2027)		215,000		235,070
4.000%, 01/01/2051 (Callable 07/01/2029)		2,500,000		2,834,925
Williston Public School District No. 1,
3.000%, 08/01/2026
(Callable 08/01/2024) (Insured by SD CRED PROG)		1,015,000		1,094,485
Total North Dakota
(Cost $30,719,188)				31,204,074		1.9	%
Ohio
Akron Bath Copley Joint Township Hospital District,
5.000%, 11/15/2028		460,000		582,130
Alliance City School District,
2.500%, 12/01/2022 (Insured by SD CRED PROG)		200,000		208,550

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
American Municipal Power, Inc.:
5.000%, 02/15/2026 (Callable 02/15/2024)	$	1,200,000	$	1,363,632
2.250%, 02/15/2048 (Callable 02/15/2021)
(Mandatory Tender Date 08/15/2021)(7)		275,000		275,506
City of Huron OH,
3.125%, 12/01/2024		325,000		340,119
City of Lorain OH:
3.000%, 12/01/2021 (Insured by BAM)		110,000		112,521
3.000%, 12/01/2022 (Insured by BAM)		185,000		193,436
3.000%, 12/01/2023 (Insured by BAM)		185,000		196,344
3.000%, 12/01/2024 (Insured by BAM)		130,000		140,093
3.000%, 12/01/2025 (Insured by BAM)		135,000		147,308
3.000%, 12/01/2026 (Insured by BAM)		135,000		147,924
City of Middleburg Heights OH:
4.000%, 08/01/2025		165,000		184,772
5.000%, 08/01/2026		270,000		321,770
5.000%, 08/01/2027		280,000		340,334
5.250%, 08/01/2041 (Callable 08/01/2021)		1,900,000		1,955,746
City of St. Clairsville OH,
4.000%, 12/01/2023 (Insured by BAM)		340,000		375,234
City of Tiffin OH,
2.500%, 12/01/2024 (Callable 12/01/2023)		250,000		262,630
Cleveland-Cuyahoga County Port Authority,
5.000%, 08/01/2026 (Callable 08/01/2024)		525,000		585,317
County of Franklin OH:
5.000%, 05/15/2027 (Callable 05/15/2023)		1,000,000		1,103,220
5.000%, 05/15/2030 (Callable 05/15/2023)		270,000		295,893
0.500%, 05/15/2050
(SIFMA Municipal Swap Index + 0.430%)
(Callable 05/15/2021)
(Mandatory Tender Date 11/15/2021)(2)		500,000		500,230
County of Gallia OH,
8.000%, 07/01/2042 (Pre-refunded to 07/01/2022)		540,000		596,657
County of Holmes OH,
3.000%, 12/01/2022
(Callable 02/01/2021) (Insured by AGM)		130,000		131,464
County of Montgomery OH:
5.000%, 11/15/2024		1,460,000		1,658,706
5.000%, 11/15/2025		2,500,000		2,923,325
5.000%, 11/15/2027		2,000,000		2,434,860
Cuyahoga Metropolitan Housing Authority:
3.000%, 12/01/2022		245,000		255,861
4.000%, 12/01/2023		310,000		339,106
4.000%, 12/01/2024		335,000		376,975
4.000%, 12/01/2025		335,000		386,356

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Euclid City School District:
4.000%, 12/01/2023 (Insured by BAM)	$	130,000	$	143,392
4.000%, 12/01/2025 (Insured by BAM)		65,000		75,817
4.000%, 12/01/2026 (Insured by BAM)		100,000		118,993
Great Oaks Career Campuses Board of Education,
4.000%, 12/01/2022		400,000		429,212
Greater Cleveland Regional Transit Authority,
5.000%, 12/01/2023		145,000		164,798
Groveport-Madison Local School District,
4.000%, 12/01/2024
(Callable 12/01/2022) (Insured by BAM)		50,000		53,217
Miami University,
4.000%, 09/01/2027 (Callable 09/01/2022)		160,000		168,218
Norton City School District,
4.000%, 11/01/2026
(Callable 11/01/2023) (Insured by SD CRED PROG)		430,000		472,239
Ohio Higher Educational Facility Commission:
5.000%, 11/01/2023		580,000		638,818
5.000%, 05/01/2024		705,000		804,786
5.000%, 05/01/2024		415,000		473,739
5.000%, 03/01/2025		685,000		726,490
5.000%, 05/01/2025		595,000		702,457
5.000%, 05/01/2025		455,000		537,173
5.000%, 05/01/2026 (Callable 05/01/2025)		750,000		881,970
Ohio Housing Finance Agency:
4.000%, 03/01/2047
(Callable 09/01/2025) (Insured by GNMA)		105,000		112,795
3.750%, 09/01/2050
(Callable 03/01/2029) (Insured by GNMA)		1,990,000		2,248,959
Ohio Turnpike & Infrastructure Commission,
5.500%, 02/15/2024		1,185,000		1,317,281
Oregon City School District,
0.000%, 12/01/2021		245,000		244,292
Port of Greater Cincinnati Development Authority:
3.000%, 05/01/2023 (Callable 05/01/2022)		5,805,000		5,808,947
3.125%, 11/15/2023		360,000		369,893
5.000%, 04/01/2026		175,000		207,435
5.000%, 04/01/2027		250,000		302,965
State of Ohio:
5.000%, 04/01/2029 (Callable 04/01/2023)		25,000		27,547
5.000%, 01/15/2050
(Mandatory Tender Date 01/15/2025)(1)		4,485,000		5,237,762
Toledo OH,
5.000%, 12/01/2022		150,000		160,941

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Troy City School District,
2.050%, 12/01/2023 (Callable 12/01/2022)	$	130,000	$	134,198
Village of Cuyahoga Heights OH:
4.000%, 12/01/2023 (Insured by AGM)		95,000		103,460
4.000%, 12/01/2024 (Insured by AGM)		100,000		111,833
Wauseon Exempted Village School District,
0.000%, 12/01/2021 (Insured by SD CRED PROG)		400,000		398,484
Total Ohio
(Cost $41,171,746)				41,914,130		2.6	%
Oklahoma
Catoosa Industrial Authority,
4.000%, 10/01/2028 (Callable 10/01/2026)		240,000		240,876
City of Midwest City OK:
3.000%, 06/01/2021		370,000		374,229
3.000%, 06/01/2023		485,000		513,872
Cleveland County Educational Facilities Authority,
5.000%, 06/01/2021		1,080,000		1,099,526
Custer County Economic Development Authority:
4.000%, 12/01/2021		415,000		428,566
4.000%, 12/01/2023		450,000		492,930
Elk City Industrial Authority,
3.000%, 05/01/2022		105,000		108,596
Kingfisher County Educational Facilities Authority,
3.000%, 03/01/2023		385,000		404,662
Oklahoma County Finance Authority,
5.000%, 09/01/2024		350,000		407,162
Oklahoma Development Finance Authority:
4.000%, 08/01/2021		425,000		430,589
4.000%, 08/01/2022		535,000		554,003
5.000%, 08/01/2023		485,000		523,063
2.600%, 03/01/2024		1,000,000		998,480
5.000%, 08/01/2024		585,000		646,998
0.250%, 08/15/2031 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		12,500,000		12,500,000
Oklahoma Municipal Power Authority,
0.460%, 01/01/2023
(SIFMA Municipal Swap Index + 0.390%)(2)		205,000		204,980
Oklahoma Water Resources Board,
5.000%, 04/01/2023		750,000		830,858
Purcell Public Works Authority:
5.000%, 03/01/2024		250,000		277,423
5.000%, 03/01/2025		200,000		227,722
5.000%, 03/01/2026		435,000		506,105
5.000%, 03/01/2027		880,000		1,038,426

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Texas County Development Authority,
4.000%, 12/01/2023	$	675,000	$	737,762
Tulsa County Industrial Authority,
5.000%, 09/01/2024		400,000		464,856
Tulsa Industrial Authority,
5.000%, 10/01/2023		790,000		845,182
University of Oklahoma,
5.000%, 07/01/2029 (Callable 07/01/2026)		3,515,000		4,265,699
Total Oklahoma
(Cost $28,922,940)				29,122,565		1.8	%
Oregon
County of Yamhill OR:
4.000%, 10/01/2022		500,000		517,515
4.000%, 10/01/2023		425,000		448,766
4.000%, 10/01/2024		425,000		456,297
Oregon State Business Development Commission,
2.400%, 12/01/2040
(Mandatory Tender Date 08/14/2023)(1)		100,000		105,157
Port of Morrow OR,
4.000%, 06/01/2026 (Callable 02/01/2021)		220,000		220,534
State of Oregon:
4.000%, 05/01/2023		500,000		544,305
4.000%, 12/01/2048 (Callable 12/01/2026)		775,000		842,363
State of Oregon Housing &
Community Services Department:
3.500%, 07/01/2032 (Callable 07/01/2026)		2,695,000		2,940,568
3.875%, 01/01/2033 (Callable 07/01/2024)		315,000		338,181
3.500%, 07/01/2036 (Callable 01/01/2025)		95,000		100,222
4.500%, 01/01/2049 (Callable 07/01/2027)		1,380,000		1,521,243
4.500%, 07/01/2049 (Callable 07/01/2027)		425,000		471,555
Total Oregon
(Cost $8,225,261)				8,506,706		0.5	%
Pennsylvania
Abington Heights School District Lackawanna County,
2.000%, 03/15/2023
(Callable 02/01/2021) (Insured by ST AID)		195,000		195,205
Aliquippa Municipal Water Authority,
2.000%, 11/15/2023
(Callable 11/15/2022) (Insured by BAM)		250,000		256,480
Allegheny County Higher Education Building Authority,
5.000%, 03/01/2023 (Callable 03/01/2021)		250,000		251,767
Allegheny County Hospital Development Authority:
5.000%, 07/15/2021		2,525,000		2,586,307
4.125%, 10/15/2026 (Callable 10/15/2021)		55,000		56,403

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Allentown City School District,
2.375%, 03/31/2021
(Callable 02/01/2021) (Insured by ST AID)	$	1,500,000	$	1,500,105
Berks County Industrial Development Authority:
5.000%, 11/01/2021		270,000		277,282
5.000%, 11/01/2023		75,000		79,851
5.000%, 11/01/2024		375,000		407,269
Berks County Municipal Authority:
5.000%, 02/01/2024		435,000		465,481
5.000%, 02/01/2025		565,000		616,573
5.000%, 02/01/2040 (Callable 08/01/2024)
(Mandatory Tender Date 02/01/2025)(1)		360,000		389,426
5.000%, 02/01/2040 (Callable 08/01/2026)
(Mandatory Tender Date 02/01/2027)(1)		1,000,000		1,112,680
Blacklick Valley School District:
5.000%, 11/15/2021 (Insured by MAC)		170,000		176,609
5.000%, 11/15/2022 (Insured by MAC)		175,000		189,604
5.000%, 11/15/2023 (Insured by MAC)		190,000		214,041
5.000%, 11/15/2024 (Insured by MAC)		200,000		233,630
Borough of Lewistown PA:
4.000%, 09/01/2022 (Insured by AGM)		265,000		281,406
4.000%, 09/01/2023 (Insured by AGM)		315,000		343,149
4.000%, 09/01/2024 (Insured by AGM)		100,000		112,133
Caernarvon Township Authority:
4.000%, 09/01/2023 (Insured by MAC)		100,000		108,936
4.000%, 09/01/2024 (Insured by MAC)		140,000		157,041
4.000%, 09/01/2025
(Callable 09/01/2024) (Insured by MAC)		100,000		111,766
4.000%, 09/01/2026
(Callable 09/01/2024) (Insured by MAC)		150,000		167,302
4.000%, 09/01/2027
(Callable 09/01/2024) (Insured by MAC)		130,000		144,690
4.000%, 09/01/2028
(Callable 09/01/2024) (Insured by MAC)		165,000		182,990
4.000%, 09/01/2029
(Callable 09/01/2024) (Insured by MAC)		170,000		187,942
4.000%, 09/01/2030
(Callable 09/01/2024) (Insured by MAC)		175,000		193,107
4.000%, 09/01/2032
(Callable 09/01/2024) (Insured by MAC)		375,000		411,653
Carmichaels Area School District:
4.000%, 09/01/2022 (Insured by BAM)		100,000		105,320
4.000%, 09/01/2023 (Insured by BAM)		155,000		168,379
4.000%, 09/01/2024 (Insured by BAM)		220,000		245,507

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Catholic Health Initiatives,
4.000%, 05/15/2022
(Pre-refunded to 05/15/2021) (Insured by ST AID)	$	50,000	$	50,678
Centennial School District Bucks County,
5.000%, 12/15/2022 (Insured by ST AID)		50,000		54,655
Central Bradford Progress Authority,
5.000%, 12/01/2026 (Pre-refunded to 12/01/2021)		415,000		433,052
City of Altoona PA,
4.000%, 08/01/2027 (Insured by AGM)		110,000		130,985
City of Bradford PA:
2.500%, 11/01/2025 (Insured by AGM)		395,000		415,852
3.500%, 11/01/2028
(Callable 11/01/2025) (Insured by AGM)		385,000		413,906
3.500%, 11/01/2029
(Callable 11/01/2025) (Insured by AGM)		100,000		106,640
City of Pittston PA:
1.000%, 11/15/2022 (Insured by BAM)		100,000		100,276
4.000%, 11/15/2023 (Insured by BAM)		175,000		189,938
4.000%, 11/15/2024 (Insured by BAM)		265,000		294,089
4.000%, 11/15/2025 (Insured by BAM)		275,000		312,147
4.000%, 11/15/2026
(Callable 11/15/2025) (Insured by BAM)		140,000		158,134
4.000%, 11/15/2027
(Callable 11/15/2025) (Insured by BAM)		125,000		140,304
City of Wilkes-Barre PA:
4.000%, 11/15/2025 (Insured by BAM)		200,000		226,916
4.000%, 11/15/2026 (Insured by BAM)		595,000		686,993
4.000%, 11/15/2027 (Insured by BAM)		1,000,000		1,167,620
City of York PA,
5.000%, 11/15/2025		1,505,000		1,585,382
Coatesville School District,
5.000%, 08/01/2023 (Insured by AGM)		150,000		166,450
Commonwealth Financing Authority:
5.000%, 06/01/2022		265,000		281,597
5.000%, 06/01/2023		225,000		248,796
Commonwealth of Pennsylvania,
3.750%, 10/01/2021 (Callable 02/01/2021)		175,000		175,404
County of Allegheny PA,
0.693%, 11/01/2026 (3 Month LIBOR USD + 0.550%)
(Callable 02/01/2021) (Insured by AGM)(2)		650,000		649,103
County of Lackawanna PA,
3.000%, 03/15/2021 (Insured by BAM)		215,000		216,092
County of McKean PA:
4.000%, 11/01/2022 (Insured by BAM)		120,000		127,360
4.000%, 11/01/2023 (Insured by BAM)		395,000		432,102

The accompanying notes are an integral part of these financial statements.

Page 270

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Crawford Central School District:
4.000%, 02/15/2022 (Insured by BAM)	$	275,000	$	286,151
4.000%, 02/15/2024 (Insured by BAM)		1,505,000		1,660,436
4.000%, 02/15/2025 (Insured by BAM)		2,455,000		2,784,633
Cumberland County Municipal Authority:
5.000%, 01/01/2029 (Pre-refunded to 01/01/2025)		190,000		224,717
5.000%, 01/01/2029 (Callable 01/01/2025)		935,000		1,032,193
Delaware Valley Regional Finance Authority:
0.600%, 09/01/2048
(SIFMA Municipal Swap Index + 0.530%)
(Callable 09/01/2022)
(Mandatory Tender Date 09/01/2023)(2)		5,000,000		4,993,700
0.856%, 09/01/2048 (1 Month LIBOR USD + 0.760%)
(Callable 09/01/2023)
(Mandatory Tender Date 09/01/2024)(2)		2,000,000		2,000,240
0.976%, 09/01/2048 (1 Month LIBOR USD + 0.880%)
(Callable 09/01/2024)
(Mandatory Tender Date 09/01/2025)(2)		2,000,000		2,003,600
0.190%, 11/01/2055
(SIFMA Municipal Swap Index + 0.210%)
(Callable 01/04/2021) (Optional Put Date 01/07/2021)(1)		6,100,000		6,100,000
East Allegheny School District,
0.000%, 11/15/2021 (Insured by AGM)		480,000		477,859
East Hempfield Township
Industrial Development Authority,
5.000%, 07/01/2029 (Callable 07/01/2024)		1,730,000		1,756,279
Eastern York School District,
2.250%, 09/01/2025
(Callable 02/01/2021) (Insured by BAM)		655,000		655,688
Easton Area School District,
4.000%, 04/01/2030
(Callable 10/01/2024) (Insured by ST AID)		1,150,000		1,275,902
Elizabeth Forward School District,
0.000%, 09/01/2022 (ETM) (Insured by NATL)		250,000		248,353
Erie City Water Authority,
4.000%, 12/01/2025
(Pre-refunded to 12/01/2022) (Insured by AGM)		385,000		411,969
Greater Hazleton Joint Sewer Authority:
4.000%, 05/15/2022 (Insured by BAM)		255,000		267,985
4.000%, 05/15/2023 (Insured by BAM)		460,000		497,674
4.000%, 05/15/2024 (Insured by BAM)		325,000		362,820
4.000%, 05/15/2025 (Insured by BAM)		255,000		292,541
Hamburg Area School District,
4.000%, 04/01/2024 (Insured by ST AID)		845,000		936,936

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Hazleton Area School District,
4.000%, 03/01/2025 (Insured by BAM)	$	430,000	$	485,883
Indiana Area School District,
2.250%, 09/01/2022
(Callable 02/01/2021) (Insured by BAM)		950,000		950,741
Lackawanna County Industrial Development Authority,
5.000%, 11/01/2021		450,000		466,097
Lancaster City Parking Authority,
3.000%, 12/01/2027 (Insured by BAM)		645,000		727,592
Lancaster Higher Education Authority,
5.000%, 10/01/2022 (Insured by BAM)		35,000		37,800
Lancaster Industrial Development Authority,
5.000%, 05/01/2022 (ETM)		45,000		47,851
Lehigh County Industrial Development Authority,
1.800%, 09/01/2029
(Mandatory Tender Date 09/01/2022)(1)		5,090,000		5,205,747
Lycoming County Authority:
2.000%, 11/01/2035
(Mandatory Tender Date 11/01/2022)(1)		1,000,000		1,000,000
4.000%, 11/01/2043
(Mandatory Tender Date 05/01/2024)(1)		1,260,000		1,338,788
Montgomery County Higher
Education & Health Authority,
3.000%, 05/01/2036
(Mandatory Tender Date 05/01/2021)(1)		1,660,000		1,668,532
Montgomery County Industrial Development Authority:
4.000%, 12/01/2021		100,000		102,385
4.000%, 12/01/2022		90,000		94,341
4.000%, 12/01/2023		125,000		133,857
4.000%, 12/01/2024		200,000		218,424
4.000%, 12/01/2025		200,000		222,294
North East School District,
2.000%, 09/01/2021
(Callable 02/01/2021) (Insured by BAM)		445,000		445,507
North Penn Water Authority,
0.630%, 11/01/2024
(SIFMA Municipal Swap Index + 0.560%)
(Callable 11/01/2023)(2)		845,000		839,955
North Pocono School District,
4.000%, 03/15/2024 (Insured by BAM)		230,000		254,918
Northampton County General Purpose Authority:
5.000%, 10/01/2021		100,000		101,719
1.141%, 08/15/2048 (1 Month LIBOR USD + 1.040%)
(Callable 02/15/2023)
(Mandatory Tender Date 08/15/2024)(2)		75,000		75,272

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Octorara Area School District,
4.000%, 04/01/2025 (Insured by AGM)	$	355,000	$	406,333
Palmyra Area School District,
5.000%, 06/01/2030
(Callable 06/01/2025) (Insured by ST AID)		400,000		474,920
Pennsylvania Economic Development Financing Authority,
2.800%, 12/01/2033
(Mandatory Tender Date 12/01/2021)(1)		720,000		736,200
Pennsylvania Higher Educational Facilities Authority:
5.000%, 08/15/2024 (Pre-refunded to 08/15/2021)		185,000		190,513
5.000%, 05/01/2025		575,000		675,625
5.000%, 05/01/2026		570,000		689,683
2.850%, 05/01/2034
(Mandatory Tender Date 05/01/2021)(1)		495,000		497,821
Pennsylvania Housing Finance Agency:
2.450%, 07/01/2022
(Mandatory Tender Date 07/01/2021)(1)		2,500,000		2,525,875
3.700%, 10/01/2042 (Callable 10/01/2021)		155,000		156,386
4.000%, 10/01/2046 (Callable 04/01/2026)		130,000		139,925
4.000%, 10/01/2049 (Callable 10/01/2028)		5,560,000		6,044,165
Pennsylvania Turnpike Commission:
1.050%, 12/01/2021
(SIFMA Municipal Swap Index + 0.980%)
(Callable 06/01/2021)(2)		1,010,000		1,012,717
5.000%, 12/01/2022		50,000		54,013
0.000%, 12/01/2023		85,000		82,409
0.770%, 12/01/2023
(SIFMA Municipal Swap Index + 0.700%)
(Callable 12/01/2022)(2)		2,150,000		2,160,750
5.000%, 12/01/2028(7)		360,000		436,622
Perkasie Regional Authority,
4.000%, 02/01/2023 (Insured by BAM)		460,000		492,959
Pittsburgh Water & Sewer Authority,
0.720%, 09/01/2040 (1 Month LIBOR USD + 0.650%)
(Callable 06/01/2023)
(Mandatory Tender Date 12/01/2023)
(Insured by AGM)(2)		11,000,000		11,026,620
Public Parking Authority Of Pittsburgh:
5.000%, 12/01/2026 (Pre-refunded to 06/01/2025)		285,000		342,886
5.000%, 12/01/2026 (Callable 06/01/2025)		415,000		480,342
Quakertown Community School District,
2.150%, 08/01/2025
(Callable 02/01/2021) (Insured by ST AID)		1,090,000		1,091,537
Reading School District:
4.000%, 04/01/2023 (Insured by BAM)		160,000		172,328

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Reading School District: (cont.)
4.000%, 04/01/2023 (Insured by BAM)	$	565,000	$	608,533
5.000%, 04/01/2023 (Insured by BAM)		750,000		823,042
4.000%, 04/01/2024 (Insured by BAM)		615,000		681,912
5.000%, 04/01/2024 (Insured by BAM)		2,250,000		2,564,528
Sayre Area School District:
3.000%, 05/15/2022 (Insured by BAM)		25,000		25,822
3.000%, 05/15/2024 (Insured by BAM)		25,000		27,008
Sayre Health Care Facilities Authority,
0.931%, 12/01/2024 (3 Month LIBOR USD + 0.780%)
(Callable 02/01/2021)(2)		200,000		199,616
School District of Philadelphia:
5.000%, 06/01/2024		345,000		392,593
5.000%, 09/01/2025 (Insured by ST AID)		135,000		160,847
5.000%, 09/01/2025 (Insured by ST AID)		500,000		595,730
5.000%, 09/01/2026 (Insured by ST AID)		1,000,000		1,225,430
School District of Reading,
5.000%, 03/01/2024 (Insured by AGM)		100,000		113,625
School District of the City of Erie:
5.000%, 04/01/2023 (Insured by AGM)		265,000		290,808
5.000%, 04/01/2024 (Insured by AGM)		230,000		262,152
5.000%, 04/01/2024 (Insured by AGM)		250,000		284,948
Scranton School District,
0.947%, 04/01/2031 (1 Month LIBOR USD + 0.850%)
(Callable 12/01/2022)
(Mandatory Tender Date 06/01/2023)
(Insured by ST AID)(2)		4,975,000		4,974,304
Scranton-Lackawanna Health and Welfare Authority:
5.000%, 11/01/2023		35,000		39,181
5.000%, 11/01/2025		40,000		47,984
State Public School Building Authority,
5.000%, 12/01/2027
(Callable 12/01/2026) (Insured by AGM)		1,090,000		1,355,677
Steel Valley School District:
3.000%, 11/01/2021 (Insured by BAM)		50,000		50,974
4.000%, 11/01/2022 (Insured by BAM)		190,000		201,332
4.000%, 11/01/2024 (Insured by BAM)		260,000		291,065
4.000%, 11/01/2024 (Insured by BAM)		50,000		55,974
4.000%, 11/01/2025 (Insured by BAM)		270,000		309,479
4.000%, 11/01/2025 (Insured by BAM)		50,000		57,311
4.000%, 11/01/2026 (Insured by BAM)		280,000		326,172
Township of Hampton PA,
5.900%, 02/01/2023		125,000		138,104
Township of North Fayette PA,
4.000%, 04/15/2025 (Callable 04/15/2024)		210,000		233,318

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
University of Pittsburgh-of the
Commonwealth System of Higher Education:
0.310%, 09/15/2021
(SIFMA Municipal Swap Index + 0.240%)
(Callable 03/15/2021)(2)	$	100,000	$	100,022
0.430%, 02/15/2024
(SIFMA Municipal Swap Index + 0.360%)
(Callable 08/15/2023)(2)		2,500,000		2,509,425
West Cornwall Township Municipal Authority,
0.070%, 01/01/2037 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		1,840,000		1,840,000
Westmoreland County Industrial Development Authority:
4.000%, 07/01/2023		375,000		399,634
4.000%, 07/01/2024		450,000		490,104
4.000%, 07/01/2025		550,000		611,017
4.000%, 07/01/2026		625,000		706,200
Westmoreland County Municipal Authority,
0.000%, 08/15/2023 (ETM)		220,000		216,810
Wilkes-Barre Finance Authority,
5.000%, 11/01/2024		40,000		46,429
York City School District,
4.000%, 05/01/2025 (Insured by BAM)		3,070,000		3,530,868
Total Pennsylvania
(Cost $118,523,352)				120,060,491		7.4	%
Puerto Rico
Puerto Rico Highway & Transportation Authority,
4.600%, 07/01/2022 (ETM) (Insured by NATL)		25,000		26,596
Puerto Rico Public Finance Corp.:
5.125%, 06/01/2024 (Insured by AMBAC)		305,000		328,244
6.000%, 08/01/2026 (ETM) (Insured by AGC)		375,000		484,616
Total Puerto Rico
(Cost $790,763)				839,456		0.1	%
Rhode Island
Providence Public Buildings Authority,
5.125%, 06/15/2021 (Insured by AGM)		140,000		142,820
Rhode Island Health and Educational Building Corp.,
0.070%, 06/01/2035 (Callable 01/01/2021)
(Optional Put Date 01/04/2021)(1)		3,205,000		3,205,000
Rhode Island Housing & Mortgage Finance Corp.:
3.500%, 10/01/2046 (Callable 04/01/2025)		30,000		30,978
3.750%, 10/01/2049 (Callable 04/01/2029)		2,225,000		2,473,043
Total Rhode Island
(Cost $5,778,939)				5,851,841		0.4	%

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
South Carolina
Barnwell Facilities Corp.:
5.000%, 09/01/2023 (Insured by BAM)	$	285,000	$	318,528
5.000%, 09/01/2024 (Insured by BAM)		280,000		324,514
City of Myrtle Beach SC,
5.000%, 10/01/2027 (Callable 10/01/2026)		1,000,000		1,224,250
City of Walhalla SC,
5.000%, 06/01/2023 (Insured by BAM)		320,000		354,170
Greenville Health System,
5.000%, 05/01/2026 (Callable 05/01/2022)		1,045,000		1,102,674
Greenwood Fifty School Facilities, Inc.,
5.000%, 12/01/2027
(Callable 06/01/2026) (Insured by BAM)		1,125,000		1,367,077
Patriots Energy Group Financing Agency,
0.956%, 10/01/2048 (1 Month LIBOR USD + 0.860%)
(Callable 11/01/2023)
(Mandatory Tender Date 02/01/2024)(2)		1,500,000		1,505,940
Piedmont Municipal Power Agency:
5.375%, 01/01/2025 (ETM) (Insured by NATL)		230,000		269,983
5.000%, 01/01/2029 (Callable 01/01/2025)		1,000,000		1,152,160
South Carolina Jobs-Economic Development Authority:
5.250%, 08/01/2030 (Pre-refunded to 08/01/2023)		110,000		124,154
6.000%, 08/01/2031
(Pre-refunded to 08/01/2021) (Insured by AGM)		125,000		129,159
6.500%, 08/01/2039
(Pre-refunded to 08/01/2021) (Insured by AGM)		1,570,000		1,626,347
South Carolina State Housing
Finance & Development Authority:
4.000%, 07/01/2036
(Callable 07/01/2025) (Insured by GNMA)		155,000		168,485
4.000%, 07/01/2047 (Callable 01/01/2027)		585,000		634,719
4.500%, 07/01/2048 (Callable 07/01/2027)		465,000		517,294
4.000%, 01/01/2050 (Callable 07/01/2028)		2,360,000		2,676,925
4.000%, 07/01/2050 (Callable 07/01/2029)		1,980,000		2,262,110
South Carolina Transportation Infrastructure Bank,
0.546%, 10/01/2031 (1 Month LIBOR USD + 0.450%)
(Callable 10/01/2021)
(Mandatory Tender Date 10/01/2022)(2)		12,575,000		12,558,149
Spartanburg Regional Health Services District:
5.000%, 04/15/2023 (Insured by AGM)		350,000		385,256
5.000%, 04/15/2024 (Callable 04/15/2022)		845,000		890,207
University of South Carolina,
5.000%, 05/01/2027		785,000		974,373
Total South Carolina
(Cost $29,910,134)				30,566,474		1.9	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
South Dakota
Aberdeen School District No. 6-1,
2.200%, 01/01/2023 (Callable 02/01/2021)	$	255,000	$	255,331
City of Rapid City SD,
5.000%, 12/01/2025		310,000		365,202
Total South Dakota
(Cost $610,827)				620,533		0.0	%
Tennessee
City of Cleveland TN,
5.000%, 12/01/2027		3,320,000		4,306,372
City of Jackson TN:
5.000%, 04/01/2024		250,000		284,688
5.000%, 04/01/2027 (Callable 04/01/2025)		665,000		777,318
Clarksville Natural Gas Acquisition Corp.,
5.000%, 12/15/2021		185,000		192,959
County of Hardin TN:
5.000%, 06/01/2021 (Insured by AGM)		1,420,000		1,447,150
5.000%, 06/01/2022 (Insured by AGM)		1,465,000		1,564,723
Hollow Rock-Bruceton Special School District,
3.000%, 04/01/2023		346,000		365,369
Knox County Health Educational &
Housing Facility Board:
1.500%, 07/01/2022
(Mandatory Tender Date 07/01/2021)(1)		650,000		653,711
5.000%, 11/15/2022		400,000		432,056
5.000%, 04/01/2024		190,000		212,785
Memphis Health Educational & Housing Facility Board,
6.750%, 12/01/2046 (Pre-refunded to 06/01/2021)		865,000		887,412
Nashville & Davidson County Metropolitan Government,
0.000%, 06/01/2021 (ETM)		30,000		29,967
Tennessee Energy Acquisition Corp.,
5.625%, 09/01/2026		6,705,000		8,267,869
Tennessee Housing Development Agency:
4.000%, 07/01/2025 (Callable 01/02/2021)		160,000		160,000
3.050%, 07/01/2029 (Callable 07/01/2024)		135,000		142,879
3.600%, 01/01/2031 (Callable 01/01/2023)		1,450,000		1,508,159
3.850%, 07/01/2032 (Callable 01/01/2025)		1,590,000		1,727,599
4.000%, 07/01/2039 (Callable 01/01/2024)		795,000		839,305
4.200%, 07/01/2042 (Callable 01/01/2022)		350,000		354,662
4.000%, 01/01/2043 (Callable 07/01/2027)		710,000		778,430
3.800%, 07/01/2043 (Callable 01/01/2022)		200,000		202,664
4.000%, 01/01/2046 (Callable 01/01/2025)		25,000		26,858
3.750%, 01/01/2050 (Callable 01/01/2029)		2,145,000		2,411,688
3.000%, 01/01/2051 (Callable 01/01/2030)		5,000,000		5,498,750

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Wilson County Water & Wastewater Authority,
0.000%, 03/01/2022	$	300,000	$	296,136
Total Tennessee
(Cost $32,490,725)				33,369,509		2.1	%
Texas
Alvin Independent School District,
1.250%, 02/15/2033
(Mandatory Tender Date 08/15/2022)
(PSF Guaranteed)(1)		300,000		304,578
Arlington Higher Education Finance Corp.:
5.000%, 08/15/2021 (PSF Guaranteed)		1,290,000		1,326,507
5.000%, 08/15/2021 (PSF Guaranteed)		375,000		385,613
5.000%, 08/15/2022 (PSF Guaranteed)		350,000		375,123
5.000%, 08/15/2023 (PSF Guaranteed)		325,000		362,157
5.000%, 08/15/2024 (PSF Guaranteed)		535,000		618,417
5.000%, 08/15/2025 (PSF Guaranteed)		50,000		60,393
4.000%, 08/15/2026 (PSF Guaranteed)		200,000		233,880
Bandera Independent School District,
5.000%, 02/15/2024 (PSF Guaranteed)		460,000		527,339
Beaumont Independent School District,
5.000%, 02/15/2025 (PSF Guaranteed)		170,000		202,604
Boerne Public Facilities Corp.,
2.750%, 11/01/2022
(Mandatory Tender Date 11/01/2021)(1)		265,000		270,305
Brazoria County Municipal Utility District No. 17,
4.000%, 09/01/2024
(Callable 09/01/2023) (Insured by MAC)		175,000		190,375
Bryson Independent School District,
4.000%, 08/15/2030
(Callable 08/15/2027) (PSF Guaranteed)		785,000		941,325
Caney Creek Municipal Utility District:
5.000%, 03/01/2022		345,000		361,384
5.000%, 03/01/2023		365,000		395,963
5.000%, 03/01/2025		405,000		468,034
Capital Area Housing Finance Corp.,
2.100%, 09/01/2037 (Callable 08/01/2021)
(Mandatory Tender Date 09/01/2022)(1)		1,615,000		1,628,921
Central Texas Regional Mobility Authority,
5.000%, 01/01/2022		460,000		480,392
Central Texas Turnpike System:
5.000%, 08/15/2023		205,000		229,688
0.000%, 08/15/2024 (ETM) (Insured by AMBAC)		700,000		691,215
5.000%, 08/15/2027 (Callable 08/15/2024)		330,000		381,681

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Cibolo Canyons Special Improvement District:
5.000%, 08/15/2021 (Insured by AGM)	$	65,000	$	66,811
5.000%, 08/15/2022 (Insured by AGM)		365,000		391,627
Cimarron Municipal Utility District,
4.000%, 03/01/2025 (Insured by AGM)		70,000		79,497
Cinco Municipal Utility District,
4.000%, 12/01/2023 (Insured by BAM)		690,000		757,924
City of Dallas TX,
5.000%, 02/15/2027 (Callable 02/15/2024)		535,000		609,558
City of Elgin TX:
4.000%, 07/15/2023 (Insured by AGM)		155,000		167,713
4.000%, 07/15/2023 (Insured by BAM)		50,000		54,114
City of Hearne TX:
3.000%, 08/01/2022 (Insured by BAM)		225,000		232,789
3.000%, 08/01/2023 (Insured by BAM)		230,000		242,852
3.000%, 08/01/2024 (Insured by BAM)		240,000		258,418
City of Houston TX:
0.000%, 12/01/2024 (ETM) (Insured by AGM)		90,000		88,572
5.500%, 12/01/2024 (ETM) (Insured by NATL)		925,000		1,062,344
0.000%, 12/01/2025 (ETM) (Insured by AGM)		375,000		365,925
0.452%, 05/15/2034 (1 Month LIBOR USD + 0.360%)
(Callable 02/01/2021)
(Mandatory Tender Date 08/01/2021)(2)		1,525,000		1,524,710
City of Mission TX,
3.500%, 02/15/2027
(Callable 02/15/2021) (Insured by AGM)		110,000		110,299
City of Round Rock TX:
4.000%, 12/01/2023		130,000		142,600
4.000%, 12/01/2024		250,000		282,460
City of San Antonio TX:
2.000%, 02/01/2033 (Callable 06/01/2021)
(Mandatory Tender Date 12/01/2021)(1)		100,000		100,721
2.750%, 02/01/2048
(Mandatory Tender Date 12/01/2022)(1)		1,055,000		1,105,313
City of Waxahachie TX,
4.000%, 08/01/2028 (Callable 08/01/2026)		765,000		901,667
City of Wilmer TX:
5.000%, 09/01/2026 (Insured by BAM)		410,000		500,655
5.000%, 09/01/2027 (Insured by BAM)		380,000		473,381
Clear Creek Independent School District:
5.000%, 02/15/2024 (PSF Guaranteed)		115,000		131,990
1.350%, 02/15/2032
(Mandatory Tender Date 08/15/2022) (PSF Guaranteed)(1)		2,450,000		2,491,307
2.150%, 02/15/2038
(Mandatory Tender Date 08/16/2021) (PSF Guaranteed)(1)		250,000		252,895

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Clyde Education Facilities Corp.,
4.000%, 08/15/2021 (PSF Guaranteed)	$	140,000	$	143,081
Collin County Water Control &
Improvement District No. 3:
2.000%, 09/15/2022 (Insured by BAM)		315,000		324,585
2.000%, 09/15/2023 (Insured by BAM)		335,000		347,027
2.000%, 09/15/2024 (Insured by BAM)		350,000		366,471
Corpus Christi Business & Job Development Corp.,
5.000%, 09/01/2021		1,000,000		1,025,190
Cotulla Independent School District,
5.000%, 02/15/2023 (PSF Guaranteed)		100,000		109,972
County of Archer TX,
4.000%, 02/15/2024		350,000		385,920
County of Bexar TX,
5.000%, 06/15/2029 (Callable 06/15/2026)		840,000		1,044,355
County of Fort Bend TX,
2.000%, 03/01/2027 (Insured by BAM)		745,000		796,837
County of Harris TX:
5.000%, 10/01/2028 (Pre-refunded to 10/01/2021)		135,000		139,761
5.000%, 08/15/2030 (Callable 08/15/2022)		1,430,000		1,537,036
County of McLennan TX,
5.000%, 06/01/2025 (Insured by AGM)		240,000		280,735
County of Montgomery TX,
2.000%, 09/01/2027
(Callable 09/01/2025) (Insured by BAM)		435,000		451,243
County of Winkler TX,
2.000%, 02/15/2025		250,000		235,178
Cypress-Fairbanks Independent School District:
1.250%, 02/15/2040
(Mandatory Tender Date 08/15/2022) (PSF Guaranteed)(1)		575,000		583,774
2.125%, 02/15/2040
(Mandatory Tender Date 08/16/2021) (PSF Guaranteed)(1)		100,000		101,143
Dallas Convention Center Hotel Development Corp.,
0.000%, 01/01/2025		4,450,000		3,964,060
Dallas County Utility & Reclamation District,
5.000%, 02/15/2026		190,000		231,564
Dallas Independent School District:
5.000%, 02/15/2036
(Pre-refunded to 02/15/2022) (PSF Guaranteed)(1)		45,000		47,396
5.000%, 02/15/2036
(Pre-refunded to 02/15/2022) (PSF Guaranteed)		305,000		321,241
5.000%, 02/15/2036
(Pre-refunded to 02/15/2022) (PSF Guaranteed)(1)		770,000		811,003
5.000%, 02/15/2036
(Mandatory Tender Date 02/15/2022) (PSF Guaranteed)(1)		745,000		783,807

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Decatur Hospital Authority,
5.750%, 09/01/2029 (ETM)	$	1,385,000	$	1,715,239
Decatur Independent School District,
0.000%, 08/15/2027 (PSF Guaranteed)		925,000		876,363
Denton County Fresh Water Supply District No. 6,
4.000%, 02/15/2023 (Insured by BAM)		275,000		294,704
Denton Independent School District,
2.000%, 08/01/2044
(Mandatory Tender Date 08/01/2024) (PSF Guaranteed)(1)		1,655,000		1,749,683
El Paso Downtown Development Corp.,
5.000%, 08/15/2027 (Callable 08/15/2026)		1,000,000		1,180,660
Everman Independent School District,
5.000%, 02/15/2025 (PSF Guaranteed)		125,000		148,804
Fort Bend County Municipal Utility District No. 116,
4.000%, 09/01/2025
(Callable 09/01/2024) (Insured by BAM)		325,000		363,990
Fort Bend County Municipal Utility District No. 118:
2.000%, 09/01/2023 (Insured by AGM)		330,000		340,095
2.000%, 09/01/2024 (Insured by AGM)		350,000		364,367
Fort Bend County Municipal Utility District No. 134B,
4.625%, 09/01/2024 (Insured by AGM)		320,000		365,293
Fort Bend County Municipal Utility District No. 134E,
4.500%, 09/01/2022 (Insured by BAM)		330,000		350,262
Fort Bend County Municipal Utility District No. 139:
4.000%, 09/01/2022 (Insured by BAM)		180,000		190,526
4.000%, 09/01/2023 (Insured by BAM)		190,000		206,139
4.000%, 09/01/2024 (Insured by BAM)		200,000		222,806
Fort Bend County Municipal Utility District No. 23,
3.000%, 09/01/2021
(Callable 02/01/2021) (Insured by BAM)		340,000		340,619
Fort Bend County Municipal Utility District No. 30,
4.000%, 09/01/2024 (Insured by BAM)		500,000		556,440
Fort Bend County Municipal Utility District No. 58,
3.500%, 04/01/2024 (Insured by AGM)		125,000		135,674
Fort Bend County Municipal Utility District No. 81,
3.000%, 09/01/2023
(Callable 02/01/2021) (Insured by AGM)		440,000		440,686
Fort Bend Independent School District:
1.500%, 08/01/2042
(Mandatory Tender Date 08/01/2021)
(PSF Guaranteed)(1)		1,115,000		1,122,905
0.875%, 08/01/2050
(Mandatory Tender Date 08/01/2025)
(PSF Guaranteed)(1)		3,600,000		3,646,152

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Friendswood Independent School District,
5.000%, 02/15/2025 (PSF Guaranteed)	$	145,000	$	172,482
Harris County Cultural Education
Facilities Finance Corp.:
5.000%, 07/01/2049 (Callable 09/01/2026)
(Mandatory Tender Date 12/01/2026)(1)		455,000		571,257
0.900%, 05/15/2050 (Callable 05/15/2021)
(Mandatory Tender Date 05/15/2025)(1)		4,500,000		4,506,165
Harris County Health Facilities Development Corp.:
5.750%, 07/01/2027 (ETM)		975,000		1,187,501
5.750%, 07/01/2027 (ETM)		4,205,000		5,136,492
Harris County Municipal Utility District No. 109,
4.000%, 10/01/2027
(Callable 10/01/2021) (Insured by BAM)		460,000		471,155
Harris County Municipal Utility District No. 120,
3.250%, 08/01/2025
(Callable 02/01/2021) (Insured by AGM)		350,000		350,644
Harris County Municipal Utility District No. 153,
4.000%, 09/01/2023
(Callable 09/01/2022) (Insured by BAM)		100,000		105,878
Harris County Municipal Utility District No. 276,
3.000%, 09/01/2024 (Insured by BAM)		445,000		482,264
Harris County Municipal Utility District No. 284:
4.000%, 09/01/2023 (Insured by MAC)		370,000		401,428
4.000%, 09/01/2024 (Insured by MAC)		235,000		261,975
Harris County Municipal Utility District No. 371,
4.000%, 09/01/2025 (Insured by AGM)		330,000		377,969
Harris County Municipal Utility District No. 374,
3.000%, 09/01/2024 (Insured by BAM)		225,000		243,162
Harris County Municipal Utility District No. 500,
5.000%, 12/01/2021 (Insured by AGM)		85,000		88,546
Harris County Municipal Utility District No. 63,
3.000%, 09/01/2025
(Callable 09/01/2024) (Insured by AGM)		100,000		107,827
Hitchcock Independent School District,
5.000%, 02/15/2023 (PSF Guaranteed)		100,000		109,726
Hunt Memorial Hospital District:
5.000%, 02/15/2024		200,000		223,780
5.000%, 02/15/2027		1,425,000		1,720,403
Ingleside Independent School District,
5.000%, 08/15/2024 (PSF Guaranteed)		120,000		140,448
Irving Hospital Authority,
5.000%, 10/15/2023		150,000		168,794

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Katy Independent School District,
0.386%, 08/15/2036 (1 Month LIBOR USD + 0.280%)
(Callable 01/11/2021)
(Mandatory Tender Date 08/16/2021)
(PSF Guaranteed)(2)	$	680,000	$	679,136
La Vernia Independent School District,
4.000%, 08/15/2025 (PSF Guaranteed)		260,000		303,355
Lake Travis Independent School District:
2.625%, 02/15/2048
(Pre-refunded to 02/15/2022) (PSF Guaranteed)(1)		95,000		97,491
2.625%, 02/15/2048
(Pre-refunded to 02/15/2022) (PSF Guaranteed)(1)		169,999		174,457
Leander Independent School District:
0.000%, 08/15/2033
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		50,000		32,160
0.000%, 08/15/2034
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		325,000		196,999
0.000%, 08/15/2036
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		15,000		8,397
0.000%, 08/15/2036
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		100,000		53,644
0.000%, 08/15/2039
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		50,000		22,560
0.000%, 08/15/2040
(Callable 08/15/2024) (PSF Guaranteed)		130,000		57,586
0.000%, 08/15/2041
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		1,325,000		577,409
0.000%, 08/15/2041
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		8,190,000		3,549,792
0.000%, 08/15/2041
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		435,000		175,357
0.000%, 08/15/2042
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		50,000		20,618
0.000%, 08/15/2042
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		305,000		125,767
0.000%, 08/15/2043
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		40,000		15,688
0.000%, 08/15/2045
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		1,010,000		323,089
0.000%, 08/15/2046
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		890,000		267,525
0.000%, 08/15/2047
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		75,000		21,167
Lewisville Independent School District,
5.000%, 08/15/2024 (PSF Guaranteed)		440,000		515,324

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Longview Independent School District,
5.000%, 02/15/2024 (PSF Guaranteed)	$	125,000	$	143,509
Lower Colorado River Authority:
5.000%, 05/15/2024 (Callable 05/15/2022)		125,000		132,814
4.750%, 01/01/2028 (ETM) (Insured by AGM)		375,000		429,900
5.000%, 05/15/2028 (Callable 05/15/2022)		495,000		524,893
Manor Independent School District,
5.000%, 08/01/2026 (PSF Guaranteed)		100,000		125,179
Mansfield Independent School District,
2.500%, 08/01/2042
(Mandatory Tender Date 08/01/2021)
(PSF Guaranteed)(1)		3,790,000		3,838,512
Melissa Independent School District,
5.000%, 08/01/2027
(Callable 08/01/2026) (PSF Guaranteed)		560,000		698,202
Midlothian Independent School District,
2.000%, 08/01/2051
(Mandatory Tender Date 08/01/2024)
(PSF Guaranteed)(1)		1,000,000		1,053,190
Montgomery County Health Facilities Development Corp.,
0.000%, 07/15/2023 (ETM)		595,000		589,020
Montgomery County Municipal Utility District No. 112:
3.000%, 10/01/2022 (Insured by BAM)		200,000		208,502
3.000%, 10/01/2024 (Insured by BAM)		215,000		233,903
Montgomery County Municipal Utility District No. 119,
4.000%, 04/01/2021 (Insured by BAM)		250,000		252,158
Montgomery County Municipal Utility District No. 95,
3.000%, 09/01/2023 (Insured by AGM)		115,000		120,385
Montgomery Independent School District,
5.000%, 02/15/2024 (PSF Guaranteed)		175,000		200,442
New Caney Independent School District:
5.000%, 02/15/2025 (PSF Guaranteed)		100,000		119,043
3.000%, 02/15/2050
(Mandatory Tender Date 08/15/2021)
(PSF Guaranteed)(1)		230,000		233,846
New Hope Cultural Education Facilities Finance Corp.:
3.625%, 08/15/2022 (Callable 08/15/2021)(3)		65,000		65,436
4.000%, 06/15/2024		50,000		54,489
Newark Higher Education Finance Corp.:
5.000%, 08/15/2023 (PSF Guaranteed)		260,000		290,228
5.000%, 08/15/2028
(Callable 08/15/2024) (PSF Guaranteed)		705,000		813,556
North Central Texas Health Facility Development Corp.,
5.750%, 06/01/2026 (ETM) (Insured by NATL)		485,000		558,924

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
North East Independent School District,
2.200%, 08/01/2049
(Mandatory Tender Date 08/01/2024)
(PSF Guaranteed)(1)	$	1,225,000	$	1,292,559
North Mission Glen Municipal Utility District,
3.000%, 09/01/2024 (Insured by AGM)		185,000		198,962
North Texas Education Finance Corp.,
5.250%, 12/01/2047 (Pre-refunded to 06/01/2022)		1,600,000		1,712,176
North Texas Tollway Authority:
5.000%, 01/01/2022		25,000		26,172
5.250%, 09/01/2026 (Pre-refunded to 09/01/2021)		3,055,000		3,156,640
Northeast Travis County Utility District,
0.000%, 09/01/2024 (Insured by BAM)		470,000		453,226
Northgate Crossing Road Utility District,
0.000%, 12/01/2022
(Callable 02/01/2021) (Insured by AGM)		100,000		93,497
Northside Independent School District:
5.000%, 08/15/2022 (PSF Guaranteed)		110,000		118,581
1.750%, 06/01/2032 (Callable 01/21/2021)
(Mandatory Tender Date 06/01/2022)
(PSF Guaranteed)(1)		1,145,000		1,148,115
1.600%, 08/01/2049
(Mandatory Tender Date 08/01/2024)
(PSF Guaranteed)(1)		3,085,000		3,200,996
Northwest Harris County
Municipal Utility District No. 16,
5.500%, 10/01/2021 (Insured by BAM)		25,000		25,934
Northwest Harris County
Municipal Utility District No. 19:
2.000%, 10/01/2021 (Insured by AGM)		95,000		96,134
2.000%, 10/01/2022 (Insured by AGM)		105,000		107,465
2.000%, 10/01/2023 (Insured by AGM)		105,000		108,771
3.000%, 10/01/2024 (Insured by AGM)		110,000		118,822
Odessa Junior College District,
4.000%, 07/01/2029
(Callable 07/01/2022) (Insured by AGM)		190,000		198,772		��
Olmos Park Higher Education Facilities Corp.,
5.000%, 12/01/2021		210,000		217,688
Palestine Independent School District,
5.000%, 02/15/2024 (PSF Guaranteed)		135,000		154,310
Paloma Lake Municipal Utility District No. 1,
2.000%, 09/01/2022 (Insured by NATL)		150,000		153,956
Paseo del Este Municipal Utility District No. 10:
4.000%, 08/15/2022 (Insured by MAC)		160,000		169,240
4.000%, 08/15/2023 (Insured by MAC)		130,000		141,145
4.000%, 08/15/2024 (Insured by MAC)		180,000		200,417

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Poteet Independent School District,
3.000%, 08/15/2021 (PSF Guaranteed)	$	235,000	$	239,047
Prosper Independent School District,
5.000%, 02/15/2024 (PSF Guaranteed)		110,000		126,140
Red River Education Finance Corp.:
5.000%, 06/01/2021		300,000		303,756
3.000%, 06/01/2022		655,000		664,936
5.000%, 06/01/2022		880,000		917,647
Remington Municipal Utility District No. 1:
3.000%, 09/01/2021 (Insured by AGM)		415,000		422,250
3.000%, 09/01/2022 (Insured by AGM)		100,000		104,370
Rockwall Independent School District:
0.000%, 02/15/2023 (PSF Guaranteed)		1,000,000		991,390
0.000%, 02/15/2024 (PSF Guaranteed)		1,270,000		1,249,197
SA Energy Acquisition Public Facility Corp.,
5.500%, 08/01/2021		25,000		25,740
San Antonio Water System,
2.000%, 05/01/2043
(Mandatory Tender Date 11/01/2021)(1)		645,000		654,423
San Benito Consolidated Independent School District,
5.000%, 02/15/2024 (PSF Guaranteed)		100,000		114,371
Sedona Lakes Municipal Utility District No. 1,
3.000%, 09/01/2024 (Insured by BAM)		105,000		113,476
Sherman Independent School District,
5.000%, 02/15/2026
(Callable 02/15/2024) (PSF Guaranteed)		1,000,000		1,142,370
Sienna Plantation:
2.000%, 09/01/2027
(Callable 09/01/2025) (Insured by AGM)		500,000		519,360
2.000%, 09/01/2028
(Callable 09/01/2025) (Insured by AGM)		315,000		326,264
South Shore Harbor Municipal Utility District No. 7,
4.000%, 09/01/2023 (Insured by BAM)		370,000		401,224
Southwest Houston Redevelopment Authority,
5.000%, 09/01/2025 (Insured by AGM)		250,000		294,478
Southwest Texas Junior College District,
4.000%, 10/01/2023 (Insured by BAM)		100,000		109,009
Spring Creek Utility District of Montgomery County:
2.500%, 10/01/2023 (Insured by AGM)		150,000		157,879
3.000%, 10/01/2023 (Insured by AGM)		145,000		154,789
State of Texas:
5.000%, 10/01/2027 (Callable 10/01/2025)		1,210,000		1,473,986
1.850%, 08/01/2029
(Callable 02/01/2021) (Optional Put Date 08/01/2022)(1)		315,000		315,258

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Tarrant County Cultural Education
Facilities Finance Corp.:
5.000%, 11/15/2024	$	225,000	$	254,804
5.000%, 10/01/2025 (Callable 10/01/2023)		2,110,000		2,372,062
2.250%, 11/15/2025		225,000		231,858
Taylor Independent School District,
3.000%, 02/15/2023 (PSF Guaranteed)		815,000		859,849
Texas Department of Housing & Community Affairs:
4.050%, 07/01/2026
(Callable 02/01/2021) (Insured by GNMA)		380,000		380,817
4.750%, 03/01/2049
(Callable 09/01/2027) (Insured by GNMA)		630,000		704,850
Texas Municipal Gas Acquisition & Supply Corp. I:
5.250%, 12/15/2021		120,000		125,446
1.595%, 12/15/2026 (3 Month LIBOR USD + 1.450%)
(Callable 01/04/2021)(2)		7,800,000		7,676,526
6.250%, 12/15/2026		2,750,000		3,300,055
Texas Municipal Gas Acquisition & Supply Corp. III:
5.000%, 12/15/2021		140,000		145,996
5.000%, 12/15/2022		150,000		162,935
5.000%, 12/15/2023 (Callable 12/15/2022)		345,000		374,304
5.000%, 12/15/2029 (Callable 12/15/2022)		1,425,000		1,529,923
Texas Public Finance Authority,
5.000%, 12/01/2027 (Callable 06/01/2025)		900,000		1,052,181
Texas State Affordable Housing Corp.,
4.250%, 03/01/2049
(Callable 03/01/2029) (Insured by GNMA)		915,000		1,020,143
Texas State Public Finance Authority
Charter School Finance Corp.,
7.250%, 08/15/2041 (Pre-refunded to 08/15/2021)(7)		450,000		468,792
Texas Transportation Commission State Highway Fund,
4.000%, 04/01/2026
(Mandatory Tender Date 10/01/2021)(1)		910,000		934,970
Tioga Independent School District Public Facility Corp.:
4.000%, 08/15/2021		185,000		186,286
4.000%, 08/15/2022		450,000		457,582
4.000%, 08/15/2023		470,000		481,947
4.000%, 08/15/2024		185,000		191,153
3.250%, 08/15/2026 (Callable 08/15/2024)		195,000		195,525
Town of Providence Village TX,
4.000%, 03/01/2024 (Insured by BAM)		275,000		303,166
Travis County Health Facilities Development Corp.:
7.000%, 01/01/2032 (Pre-refunded to 01/01/2021)		165,000		165,000
7.125%, 01/01/2046 (Pre-refunded to 01/01/2021)		485,000		485,000

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Tyler Health Facilities Development Corp.,
5.500%, 07/01/2027 (Pre-refunded to 07/01/2021)	$	55,000	$	56,404
Upper Trinity Regional Water District,
5.000%, 08/01/2024
(Callable 08/01/2022) (Insured by AGM)		195,000		208,769
Viridian Municipal Management District:
6.000%, 12/01/2023 (Insured by BAM)		50,000		57,517
4.000%, 12/01/2024 (Insured by BAM)		425,000		477,377
4.000%, 12/01/2025
(Callable 12/01/2024) (Insured by BAM)		440,000		498,221
4.000%, 12/01/2026
(Callable 12/01/2023) (Insured by AGM)		340,000		372,024
4.000%, 12/01/2026
(Callable 12/01/2024) (Insured by BAM)		460,000		518,586
4.000%, 12/01/2027
(Callable 12/01/2024) (Insured by BAM)		475,000		533,539
4.000%, 12/01/2028
(Callable 12/01/2024) (Insured by BAM)		495,000		552,559
4.000%, 12/01/2028
(Callable 12/01/2024) (Insured by BAM)		455,000		507,907
4.000%, 12/01/2029
(Callable 12/01/2024) (Insured by BAM)		685,000		761,309
West Harris County Municipal Utility District No. 17:
0.000%, 09/01/2021 (Insured by AGM)		60,000		59,835
3.000%, 09/01/2023 (Insured by AGM)		360,000		381,035
Willow Creek Farms Municipal Utility District:
2.400%, 09/01/2023 (Insured by AGM)		45,000		47,043
3.500%, 09/01/2023 (Insured by AGM)		125,000		134,286
Wink-Loving Independent School District:
5.000%, 02/15/2026
(Callable 02/15/2023) (PSF Guaranteed)		1,995,000		2,193,941
5.000%, 02/15/2027
(Callable 02/15/2023) (PSF Guaranteed)		500,000		549,750
Total Texas
(Cost $138,971,826)				142,092,580		8.8	%
Utah
County of Utah UT:
5.000%, 05/15/2057 (Callable 02/01/2024)
(Mandatory Tender Date 08/01/2024)(1)		410,000		468,191
5.000%, 05/15/2060 (Callable 02/01/2024)
(Mandatory Tender Date 08/01/2024)(1)		100,000		116,317
Utah Charter School Finance Authority:
5.000%, 04/15/2021 (Insured by UT CSCE)		110,000		111,362
4.000%, 04/15/2022 (Insured by UT CSCE)		250,000		260,998

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Utah Charter School Finance Authority: (cont.)
5.000%, 04/15/2022 (Insured by UT CSCE)	$	110,000	$	116,238
5.000%, 04/15/2023 (Insured by UT CSCE)		160,000		175,083
4.000%, 04/15/2024 (Insured by UT CSCE)		100,000		110,218
5.000%, 04/15/2024 (Insured by UT CSCE)		240,000		272,268
5.000%, 10/15/2024 (Insured by UT CSCE)		355,000		409,826
5.000%, 04/15/2025 (Insured by UT CSCE)		135,000		158,204
5.000%, 04/15/2026 (Insured by UT CSCE)		150,000		180,849
3.625%, 06/15/2029 (Callable 06/15/2027)(3)		485,000		496,436
Utah Housing Corp.,
4.000%, 01/01/2045
(Callable 01/01/2026) (Insured by FHA)		60,000		64,708
Utah Infrastructure Agency:
4.000%, 10/15/2023		180,000		196,178
4.000%, 10/15/2024		190,000		212,745
4.000%, 10/15/2025		100,000		114,696
Total Utah
(Cost $3,375,013)				3,464,317		0.2	%
Vermont
City of Burlington VT,
5.000%, 07/01/2023 (Pre-refunded to 07/01/2021)		25,000		25,571
Vermont Educational & Health
Buildings Financing Agency,
5.000%, 12/01/2033 (Callable 06/01/2026)		2,445,000		2,948,132
Vermont Housing Finance Agency:
4.000%, 11/01/2044 (Callable 11/01/2023)		55,000		59,638
4.000%, 11/01/2048 (Callable 05/01/2027)		1,210,000		1,318,307
4.000%, 11/01/2049
(Callable 05/01/2028) (Insured by GNMA)		2,455,000		2,804,199
3.750%, 11/01/2050
(Callable 05/01/2029) (Insured by GNMA)		1,525,000		1,707,298
Vermont Public Power Supply Authority:
5.000%, 07/01/2022		380,000		404,430
5.000%, 07/01/2025		520,000		615,129
5.000%, 07/01/2026		500,000		607,345
Winooski School District,
1.250%, 10/15/2021		6,000,000		6,020,040
Total Vermont
(Cost $16,278,331)				16,510,089		1.0	%
Virginia
City of Petersburg VA,
4.000%, 11/01/2025
(Callable 11/01/2022) (Insured by ST AID)		1,170,000		1,217,104

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Henry County Industrial Development Authority,
2.000%, 11/01/2023 (Callable 11/01/2021)	$	3,250,000	$	3,290,040
Stafford County & Staunton
Industrial Development Authority,
5.500%, 02/01/2041
(Pre-refunded to 02/01/2021) (Insured by ST AID)		30,000		30,112
Virginia Commonwealth University
Health System Authority,
4.750%, 07/01/2041 (Pre-refunded to 07/01/2021)		105,000		107,375
Virginia Housing Development Authority,
2.490%, 01/01/2022		1,000,000		1,019,600
Wise County Industrial Development Authority,
1.200%, 11/01/2040
(Mandatory Tender Date 05/31/2024)(1)		1,875,000		1,918,875
Total Virginia
(Cost $7,493,817)				7,583,106		0.5	%
Washington
Central Puget Sound Regional Transit Authority,
0.520%, 11/01/2045
(SIFMA Municipal Swap Index + 0.450%)
(Callable 11/01/2022)
(Mandatory Tender Date 11/01/2023)(2)		100,000		100,290
Central Washington University:
4.000%, 05/01/2024 (Callable 05/01/2023)		260,000		277,526
4.000%, 05/01/2026 (Callable 05/01/2023)		410,000		436,060
5.000%, 05/01/2026 (Insured by BAM)		410,000		503,021
City of Port Angeles WA,
4.000%, 11/01/2024
(Callable 01/22/2021) (Insured by AGC)		85,000		85,155
City of Richland WA,
4.000%, 11/01/2026 (Insured by BAM)		210,000		252,113
King County Housing Authority:
2.200%, 05/01/2021		1,000,000		1,005,850
3.500%, 05/01/2021		300,000		303,009
4.000%, 01/01/2022		100,000		103,418
3.500%, 05/01/2022		350,000		363,632
5.000%, 11/01/2026		810,000		1,003,104
Pend Oreille County Public Utility District No. 1:
5.000%, 01/01/2021		605,000		605,000
5.000%, 01/01/2022		635,000		655,460
5.000%, 01/01/2023		665,000		706,961
5.000%, 01/01/2024		1,010,000		1,102,092
5.000%, 01/01/2024		700,000		759,780
5.000%, 01/01/2025		735,000		821,826

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
San Juan County School District No. 137,
4.000%, 12/01/2028
(Callable 12/01/2022) (Insured by SCH BD GTY)	$	675,000	$	716,654
Spokane Public Facilities District,
5.000%, 12/01/2028 (Callable 06/01/2023)		550,000		585,574
State of Washington:
5.000%, 07/01/2024
(Callable 07/01/2022) (Insured by ST AID)		620,000		664,088
5.000%, 07/01/2024 (Callable 07/01/2022)		250,000		267,855
Vancouver Housing Authority,
1.530%, 12/01/2022 (Callable 12/01/2021)		1,780,000		1,793,386
Washington Health Care Facilities Authority:
1.188%, 01/01/2042
(1 Month LIBOR USD + 1.100%) (Callable 01/01/2022)
(Mandatory Tender Date 07/01/2022)(2)		500,000		501,795
5.000%, 10/01/2042
(Mandatory Tender Date 10/01/2021)(1)		120,000		124,195
Total Washington
(Cost $13,600,831)				13,737,844		0.9	%
West Virginia
City of Fairmont WV,
5.250%, 07/01/2022 (Insured by AMBAC)		70,000		73,092
Roane County Building Commission,
2.550%, 11/01/2021 (Callable 02/01/2021)		2,000,000		2,002,460
West Virginia Economic Development Authority,
2.625%, 12/01/2042
(Mandatory Tender Date 06/01/2022)(1)		290,000		298,973
Total West Virginia
(Cost $2,365,145)				2,374,525		0.1	%
Wisconsin
Appleton Redevelopment Authority,
0.200%, 06/01/2036 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		5,000,000		5,000,000
Baldwin-Woodville Area School District,
2.000%, 04/01/2023 (Callable 02/01/2021)		110,000		110,125
City of Antigo WI,
2.000%, 06/01/2022		75,000		76,649
City of Greenfield WI,
2.000%, 02/01/2025 (Callable 02/01/2021)		450,000		450,459
City of Kaukauna WI,
2.625%, 09/01/2024 (Callable 09/01/2022)		270,000		279,326
City of Ladysmith WI,
4.000%, 06/01/2022 (Callable 02/01/2021)		150,000		150,407

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Marinette WI,
4.000%, 05/01/2027 (Callable 05/01/2023)	$	150,000	$	160,818
City of Menomonie WI,
3.000%, 12/01/2024		415,000		450,051
City of Oshkosh WI,
4.000%, 05/01/2029 (Callable 05/01/2023)		125,000		134,078
City of Plymouth WI,
2.000%, 05/01/2023 (Callable 05/01/2021)		825,000		829,208
City of Waupun WI,
2.700%, 12/01/2024 (Callable 12/01/2021)		250,000		254,460
City of West Allis WI,
2.375%, 04/01/2023 (Callable 02/01/2021)		100,000		100,145
Coleman School District,
4.000%, 03/01/2025 (Callable 03/01/2024)		200,000		221,004
County of Manitowoc WI,
4.000%, 11/01/2021		90,000		92,710
Greendale School District,
2.700%, 03/01/2026 (Callable 03/01/2022)		500,000		511,625
Hilbert School District,
4.000%, 04/01/2027 (Callable 04/01/2025)		250,000		285,215
Palmyra-Eagle Area School District:
3.000%, 03/01/2024 (Callable 03/01/2023)		700,000		685,475
3.000%, 03/01/2025 (Callable 03/01/2023)		175,000		170,231
Public Finance Authority:
5.000%, 06/15/2021		140,000		142,142
4.000%, 10/01/2021		200,000		202,206
5.000%, 10/01/2022(3)		2,000,000		2,081,700
5.000%, 06/15/2023		395,000		429,772
5.000%, 10/01/2023(3)		2,000,000		2,124,940
5.000%, 10/01/2024(3)		1,605,000		1,737,172
3.000%, 03/01/2026 (Callable 03/01/2021)(3)		2,250,000		2,252,115
8.375%, 06/01/2037 (Pre-refunded to 06/01/2022)		1,020,000		1,127,885
8.625%, 06/01/2047 (Pre-refunded to 06/01/2022)		1,255,000		1,393,966
Pulaski Community School District,
2.500%, 03/01/2023 (Callable 02/01/2021)		40,000		40,055
Southeast Wisconsin Professional Baseball Park District:
0.000%, 12/15/2021 (ETM) (Insured by NATL)		30,000		29,898
0.000%, 12/15/2024 (ETM) (Insured by NATL)		95,000		93,294
State of Wisconsin:
5.000%, 05/01/2026 (Callable 05/01/2023)		60,000		66,639
5.000%, 05/01/2029 (Pre-refunded to 05/01/2022)		145,000		154,286
Tender Option Bond Trust:
0.270%, 01/01/2035
(Optional Put Date 01/07/2021)(1)(3)		795,000		795,000

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Tender Option Bond Trust: (cont.)
0.320%, 05/01/2054
(Optional Put Date 01/07/2021)(1)(3)	$	1,300,000	$	1,300,000
0.320%, 05/01/2054
(Optional Put Date 01/07/2021)(1)(3)		2,250,000		2,250,000
0.320%, 05/01/2054
(Optional Put Date 01/07/2021)(1)(3)		2,184,000		2,184,000
Town of Delavan WI,
4.500%, 03/01/2024		130,000		146,164
Town of St. Joseph WI:
3.000%, 12/01/2023 (Insured by MAC)		450,000		481,351
3.000%, 12/01/2024 (Insured by MAC)		370,000		404,240
Village of DeForest WI,
3.375%, 05/01/2023 (Callable 05/01/2021)		100,000		100,968
Village of Hales Corners WI,
3.000%, 11/01/2022		345,000		361,270
Village of Holmen WI,
4.000%, 10/01/2025		260,000		301,987
Village of Waunakee WI,
3.200%, 10/01/2026 (Callable 02/01/2021)		225,000		225,450
West Bend Joint School District No. 1,
2.000%, 04/01/2024 (Callable 04/01/2021)		535,000		537,113
Wisconsin Center District:
5.000%, 12/15/2022		715,000		781,567
5.250%, 12/15/2023 (ETM) (Insured by AGM)		35,000		38,028
5.250%, 12/15/2023 (Insured by AGM)		20,000		22,313
0.000%, 12/15/2024 (Insured by NATL)		100,000		95,917
5.000%, 12/15/2025		120,000		147,215
5.250%, 12/15/2027 (ETM) (Insured by AGM)		50,000		62,434
5.250%, 12/15/2027 (Insured by AGM)		215,000		267,591
Wisconsin Health & Educational Facilities Authority:
5.000%, 11/01/2021		110,000		111,932
5.875%, 02/15/2022 (Insured by BHAC)		90,000		92,920
5.000%, 03/01/2022		230,000		238,374
5.000%, 07/01/2022		185,000		196,905
4.000%, 09/15/2022		200,000		206,966
5.000%, 03/01/2023		300,000		320,325
5.000%, 06/01/2023 (Callable 06/01/2022)		415,000		439,028
4.000%, 09/15/2023 (Callable 09/15/2022)		150,000		155,046
5.000%, 12/01/2023		150,000		169,639
4.000%, 09/15/2024 (Callable 09/15/2023)		360,000		378,497
5.000%, 07/01/2025 (Callable 07/01/2024)		660,000		759,898
2.750%, 08/15/2025 (Callable 08/15/2024)		1,440,000		1,551,442
4.000%, 09/15/2025 (Callable 09/15/2023)		375,000		393,461
4.000%, 09/15/2025 (Callable 09/15/2022)		200,000		206,254

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Wisconsin Health & Educational
Facilities Authority: (cont.)
5.000%, 11/01/2025	$	245,000	$	265,805
5.000%, 02/15/2026 (Insured by AGM)		500,000		614,470
5.000%, 02/15/2026		1,000,000		1,194,830
2.250%, 11/01/2026 (Callable 11/01/2021)		1,250,000		1,249,988
5.000%, 11/15/2027 (Callable 11/15/2024)		640,000		741,024
5.000%, 08/15/2029 (Callable 08/15/2027)		720,000		907,733
5.000%, 11/01/2029 (Callable 11/01/2026)		500,000		551,710
3.000%, 02/15/2035 (Pre-refunded to 08/15/2025)		185,000		206,684
5.250%, 04/15/2035 (Pre-refunded to 04/15/2023)		560,000		622,602
4.000%, 02/15/2038 (Pre-refunded to 08/15/2025)		425,000		494,832
5.000%, 02/15/2051 (Callable 08/15/2026)
(Mandatory Tender Date 02/15/2027)(1)		3,100,000		3,760,331
5.000%, 02/15/2052 (Callable 08/15/2024)
(Mandatory Tender Date 02/15/2025)(1)		5,300,000		6,097,650
0.620%, 08/15/2054
(SIFMA Municipal Swap Index + 0.550%)
(Callable 07/26/2022)
(Mandatory Tender Date 07/26/2023)(2)		255,000		255,518
Wisconsin Housing & Economic Development Authority:
3.500%, 09/01/2046
(Callable 09/01/2025) (Insured by FNMA)		270,000		288,022
4.000%, 03/01/2048
(Callable 03/01/2027) (Insured by FNMA)		405,000		437,185
1.600%, 11/01/2048 (Callable 11/01/2021)
(Mandatory Tender Date 11/01/2022)(1)		430,000		433,866
4.250%, 03/01/2049 (Callable 09/01/2028)		905,000		1,014,053
Total Wisconsin
(Cost $55,646,207)				56,697,654		3.5	%
Wyoming
Carbon County Specific Purpose Tax Joint Powers Board:
5.000%, 06/15/2023		675,000		729,121
5.000%, 06/15/2024		735,000		815,027
5.000%, 06/15/2025		950,000		1,077,100
5.000%, 06/15/2026		340,000		391,796
Wyoming Community Development Authority:
4.000%, 12/01/2043 (Callable 06/01/2027)		1,130,000		1,201,156
3.750%, 12/01/2049 (Callable 12/01/2028)		1,910,000		2,067,843
Total Wyoming
(Cost $6,228,593)				6,282,043		0.4	%
Total Municipal Bonds
(Cost $1,527,824,581)				1,555,389,391		96.4	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

					% of
	Shares		Value		Net Assets
Closed-End Investment Companies
Nuveen AMT-Free Municipal Credit
Income Fund, Series B Preferred Shares,
0.470%, 03/01/2029(1)		10,000	$	10,000,000
Nuveen AMT-Free Quality Municipal
Income Fund, Series D Preferred Shares,
0.470%, 03/01/2029(1)		4,000		4,000,000
Total Closed-End Investment Companies
(Cost $14,000,000)				14,000,000		0.9	%
Total Long-Term Investments
(Cost $1,541,824,581)				1,569,389,391		97.3	%
Short-Term Investment
Money Market Mutual Fund
Federated Hermes Institutional Tax-Free
Cash Trust, Premier Shares, 0.01%(4)		4,396,284		4,396,284
Total Short-Term Investment
(Cost $4,396,284)				4,396,284		0.3	%
Total Investments
(Cost $1,546,220,865)				1,573,785,675		97.6	%
Other Assets in Excess of Liabilities				38,426,059		2.4	%
TOTAL NET ASSETS			$	1,612,211,734		100.0	%

Notes to Schedule of Investments

AGC – Assured Guaranty Corp.

AGM – Assured Guaranty Municipal

AMBAC – Ambac Assurance Corp.

BAM – Build America Mutual Assurance Co.

BHAC – Berkshire Hathaway Assurance Corp.

CA MTG – CA Mortgage Insurance

FHA – Federal Housing Administration

FNMA – Federal National Mortgage Association

GNMA – Government National Mortgage Association

MAC – Municipal Assurance Corp.

NATL – National Public Finance Guarantee Corp.

Q-SBLF – Qualified School Building Loan Fund

SCH BD GTY – School Board Guaranty

SD CRED PROG – State Credit Enhancement Program

ST AID – State Aid Intercept/Withholding

UT CSCE – Utah Charter School Finance Authority

ETM – Escrowed to Maturity

LIBOR – London Inter-bank Offered Rate

PSF – Permanent School Fund

SIFMA – Securities Industry and Financial Markets Association

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Notes to Schedule of Investments (cont.)

(1)	Variable rate security. The rate reported is the rate in effect as of December 31, 2020.
(2)	Variable rate security based on a reference index and spread. The rate reported is the rate in effect as of December 31, 2020.
(3)	Security issued under Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program. Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers. At December 31, 2020, the value of these securities total $72,935,626, which represents 4.52% of total net assets.
(4)	Seven-day yield.
(5)	Auction Rate Security. An Auction Rate Security is a debt instrument with a long nominal maturity for which the interest rate is regularly reset through a Dutch auction. The rate presented is either the rate set through the auction or the maximum interest rate provided for in the security issuance provision.
(6)	Security or a portion of the security purchased on a when-issued or delayed delivery basis.
(7)	Step-up bond; the interest rate shown is the rate in effect as of December 31, 2020.

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The accompanying notes are an integral part of these financial statements.

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Summary of Fair Value Exposure at December 31, 2020 (cont.)

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Long-Term Investments
Municipal Bonds	$	—	$	1,555,389,391	$	—	$	1,555,389,391
Closed-End Investment Companies		—		14,000,000		—		14,000,000
Total Long-Term Investments		—		1,569,389,391		—		1,569,389,391
Short-Term Investment
Money Market Mutual Fund		4,396,284		—		—		4,396,284
Total Short-Term Investment		4,396,284		—		—		4,396,284
Total Investments	$	4,396,284	$	1,569,389,391	$	—	$	1,573,785,675

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 297

Baird Strategic Municipal Bond Fund

December 31, 2020 (Unaudited)

The Baird Strategic Municipal Bond Fund seeks current income that is exempt from federal income tax and is consistent with the preservation of capital.

The coronavirus (COVID-19) challenges of 2020 were unexpected and unprecedented, but so was the speed and magnitude of the monetary and fiscal responses. The result was a year of significant volatility, yet a rewarding one for Fund investors who stayed the course. Over the full year, tax-exempt rates fell sharply across the curve with short rates falling 93bps and long yields declining 68bps, steepening the curve. As the year began, no one could have known the challenges that would soon be faced. Municipal funds were benefiting from a record streak of weekly inflows, state and local tax revenues were generally rising with the economy in its eleventh year of expansion and many municipalities were adding to an already healthy level of reserves. News broke in January of COVID-19 in the State of Washington; by the end of February, seven states had confirmed cases and it was spreading rapidly. Trading activity in the municipal market initially froze as the lockdowns began, then a torrent of selling was unleashed and a liquidity crisis quickly emerged. The selling and lack of dealer support for the market drove tax-exempt yields to record highs relative to comparable maturity Treasuries. Never had a U.S. economic shock been so swift, deep and broad, affecting so many municipalities. Investors were questioning the ability of municipalities to withstand this crisis and meet their obligations. On March 27th, President Trump signed the $2.2 trillion CARES Act which, along with other measures, offered substantial aid to nearly every sector of the municipal market. In addition, the establishment of the Municipal Liquidity Facility (MLF), which, for the first time ever, allowed the Fed to lend directly to states and other select municipalities, offered investors the psychological support they were looking for. As the policymakers acted, AAA-rated municipal yields peaked on March 20th and opportunistic investors began to emerge, looking to capitalize on the incredible undervaluation that had been created in the downdraft. From a credit perspective, the further in time we moved away from the initial economic shutdowns, the better the news became on tax revenues.

During 2020, the Fund’s Institutional Class Shares generated strong absolute and relative returns and outperformed its benchmark by 416 basis points net of fees.

The primary factors contributing to the Fund’s absolute and relative performance in 2020 include:

Contributors to Performance

• Security selection – the largest and most consistent contributor to performance for the year

• Credit sector – added to lower-quality issues as valuations became more attractive

• Yield curve exposure

Detractors from Performance

• The relative price differences between ICE (Fund) and BVAL (benchmark)

• The allocation to non-rated issues

• An overweight to the Education sector

Although the COVID-19 vaccinations have begun, we expect the economic impact of COVID-19 to linger well into 2021, particularly as it relates to travel and entertainment. Yet, with the massive fiscal stimulus that is already in the pipeline, and perhaps more coming now that the Democratic Party has full, albeit narrow, control of Washington, above-average economic growth is very likely this year.  This should boost state and local tax revenues helping municipalities recover from the pandemic-induced decline. With short-term rates anchored by the Fed, a steeper yield curve is likely which provides the opportunity for investors to capture the roll-down benefit as bonds age along a relatively steep curve. We expect the roll-down return to be an important component of total return this year, along with the yield advantage the Fund enjoys above that of its benchmark. Municipal credit spreads have room to narrow further, suggesting a modest credit overweight is appropriate. Strategic positioning across market sectors and the yield curve, a continued focus on credit to identify improving trends, plus the always-important security selection process will all be important to navigate through the current environment.

Page 298

Baird Strategic Municipal Bond Fund

December 31, 2020 (Unaudited)

The Fund will seek to capitalize on market volatility to add value from multiple decisions, including duration, curve, credit, as well as sector weightings and individual security selection. The Fund’s underweight to duration is a near-term focus of ours, while the Fund’s curve weightings will seek to optimize the roll-down benefit. We believe the uneven recovery across market sectors requires us to intensely focus on credit and our continued focus on selecting investments with strong fundamental tax and revenue support remains critical.

Page 299

Baird Strategic Municipal Bond Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

Quality Distribution⁽¹⁾⁽²⁾

	Net Assets	$171,322,549
	SEC 30-Day
	Yield(4)
	Institutional Class	1.15%
	Investor Class	0.92%
	Average
	Effective
	Duration	2.75 years
	Average
	Effective
	Maturity	2.99 years
	Annualized
Sector Weightings(1)	Expense
	Ratio(5)
	Institutional Class	0.30%
	Investor Class	0.55%	(6)
	Portfolio
	Turnover Rate	119%
	Number of
	Holdings	436

(1)	Percentages shown are based on the Fund’s total investments.
(2)	The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO).  NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest).
(3)	Includes pre-refunded and escrowed-to-maturity (ETM) bonds.
(4)	SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2020.
(5)	Reflects expense ratios as stated in the Fund’s current prospectus.
(6)	Includes 0.25% 12b-1 fee.

Page 300

Baird Strategic Municipal Bond Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on the Fund’s inception date (11/15/19), assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on the Fund’s inception date (11/15/19), assuming reinvestment of all distributions.

Page 301

Baird Strategic Municipal Bond Fund

December 31, 2020 (Unaudited)

Total Returns

		Average
		Annual
	One	Since
For the Periods Ended December 31, 2020	Year	Inception(1)
Institutional Class Shares	8.39%	8.26%
Investor Class Shares	8.13%	8.00%
Bloomberg Barclays 1-10 Year Municipal Blend Index(2)	4.23%	4.34%

(1)

For the period from November 15, 2019 (inception date) through December 31, 2020.

(2)

The Bloomberg Barclays 1-10 Year Municipal Blend Index is a market value-weighted index which covers the short and intermediate components of the Barclays Municipal Bond Index—an unmanaged, market value-weighted index which covers the U.S. investment-grade tax-exempt bond market. The 1-10 Year Municipal Blend index tracks tax-exempt municipal General Obligation, Revenue, Insured, and Prerefunded bonds with a minimum $5 million par amount outstanding, issued as part of a transaction of at least $50 million, and with a remaining maturity from 1 up to (but not including) 12 years. The index includes reinvestment of income. This Index does not reflect any deduction for fees, expenses or taxes. A direct investment in an index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund may invest up to 30% of its net assets in non-investment grade debt securities (commonly referred to as “high yield” bonds). While these types of debt securities typically offer higher yields than investment grade securities, they also include greater risks including increased credit risk and the increased risk of default or bankruptcy.  The Fund may invest up to 25% of its total assets in municipal obligations issued by persons in the same state.  As a result, changes in economic, business or political conditions of a particular state may have a disproportionate impact on the Fund’s share price. Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates.

The Fund may invest up to 20% of its net assets in U.S. government and corporate bonds and other debt securities that are of the same quality as its investments in municipal bonds. These bonds produce income that is taxable for federal income tax purposes, unlike municipal bonds which generally provide income exempt from federal income tax.

The Fund may also invest in U.S. Treasury futures contracts. Futures contracts are subject to the risk of loss caused by unanticipated market movements, the risk that there may be an imperfect correlation between the prices of futures contracts and the value of their underlying instruments or indexes, and the risk there may not be a liquid secondary market for them.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com.  Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 302

Baird Strategic Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments

	Principal				% of
	Amount		Value		Net Assets
Municipal Bonds
Alabama
Alabama Public School and College Authority,
5.000%, 11/01/2029	$	500,000	$	683,295
City of Huntsville AL:
5.000%, 09/01/2030		535,000		740,157
5.000%, 09/01/2030		1,390,000		1,923,023
Eutaw Industrial Development Board,
0.060%, 06/01/2028 (Optional Put Date 01/04/2021)(1)		800,000		800,000
Industrial Development Board of the City of Mobile AL,
0.050%, 06/01/2034 (Optional Put Date 01/04/2021)(1)		1,000,000		1,000,000
Mizuho Floater/Residual Trust,
0.470%, 12/01/2048 (Callable 02/01/2021)
(Optional Put Date 02/04/2021)(1)(3)		2,000,000		2,000,000
Tallassee Board of Education,
4.000%, 08/01/2034
(Callable 08/01/2030) (Insured by AGM)		310,000		379,871
Total Alabama
(Cost $7,452,817)				7,526,346		4.4	%
Alaska
Alaska Housing Finance Corp.:
3.450%, 12/01/2033 (Callable 06/01/2027)		265,000		272,044
4.000%, 06/01/2036 (Callable 06/01/2025)		750,000		833,692
3.750%, 12/01/2046 (Callable 02/01/2021)		190,000		190,500
Alaska Municipal Bond Bank Authority,
5.000%, 10/01/2026		175,000		214,037
CIVIC Ventures:
5.000%, 09/01/2022		260,000		269,823
5.000%, 09/01/2023		235,000		248,924
5.000%, 09/01/2025		170,000		186,978
5.000%, 09/01/2026 (Callable 09/01/2025)		130,000		142,446
University of Alaska,
5.000%, 10/01/2028 (Callable 10/01/2025)		110,000		124,761
Total Alaska
(Cost $2,449,396)				2,483,205		1.4	%
Arizona
Arizona Industrial Development Authority:
2.470%, 07/01/2025 (Insured by SD CRED PROG)		190,000		192,499
3.169%, 10/01/2025		150,000		150,238
4.750%, 10/01/2025(3)		165,000		167,097
5.000%, 10/01/2030 (Callable 10/01/2026)(3)		105,000		108,357
Cochise County Community College District,
5.000%, 07/01/2026
(Callable 07/01/2025) (Insured by BAM)		120,000		139,334

The accompanying notes are an integral part of these financial statements.

Page 303

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Maricopa County Industrial Development Authority:
4.500%, 07/01/2025(3)	$	125,000	$	123,684
5.000%, 07/01/2026 (Insured by SD CRED PROG)		430,000		516,198
5.000%, 07/01/2027 (Insured by SD CRED PROG)		710,000		866,789
5.000%, 01/01/2033 (Callable 01/01/2027)		250,000		309,400
Tender Option Bond Trust,
0.340%, 07/01/2047
(Optional Put Date 01/07/2021)(1)(3)		1,500,000		1,500,000
Total Arizona
(Cost $4,026,615)				4,073,596		2.4	%
Arkansas
Batesville Public Facilities Board,
5.000%, 06/01/2027		500,000		566,100
Carroll-Boone Water District,
3.000%, 12/01/2034 (Callable 12/01/2025)		750,000		790,470
City of Maumelle AR,
4.000%, 08/01/2030 (Callable 08/01/2025)		75,000		82,352
Henderson State University,
2.625%, 07/01/2022 (Callable 02/01/2021)		100,000		100,135
Little Rock Metrocentere Improvement District No. 1,
0.030%, 12/01/2025 (Optional Put Date 01/04/2021)(1)		1,600,000		1,600,000
Lonoke School District No. 1,
2.250%, 02/01/2030
(Callable 02/01/2021) (Insured by ST AID)		255,000		255,186
Southern Arkansas University,
4.000%, 03/01/2028
(Callable 03/01/2025) (Insured by AGM)		205,000		231,156
Total Arkansas
(Cost $3,600,399)				3,625,399		2.1	%
California
American Valley Community Services District,
1.500%, 11/01/2023 (Callable 11/01/2022)(3)		1,000,000		1,014,520
Bay Area Toll Authority,
1.320%, 04/01/2036
(SIFMA Municipal Swap Index + 1.250%)
(Callable 10/01/2026)
(Mandatory Tender Date 04/01/2027)(2)		1,075,000		1,090,534
California Health Facilities Financing Authority,
3.000%, 03/01/2041 (Callable 09/01/2023)
(Mandatory Tender Date 03/01/2024)(1)		1,000,000		1,060,880
California Infrastructure & Economic Development Bank,
0.478%, 08/01/2047
(1 Month LIBOR USD + 0.380%) (Callable 02/01/2021)
(Mandatory Tender Date 08/01/2021)(2)		175,000		174,982

The accompanying notes are an integral part of these financial statements.

Page 304

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
California Municipal Finance Authority:
3.000%, 01/01/2021	$	250,000	$	250,000
5.000%, 10/01/2023		140,000		155,072
California Pollution Control Financing Authority,
0.010%, 03/01/2042 (Optional Put Date 01/04/2021)(1)		2,000,000		2,000,000
California Public Finance Authority,
0.010%, 08/01/2052 (Optional Put Date 01/04/2021)(1)		300,000		300,000
City & County of San Francisco CA,
1.300%, 07/01/2023
(Mandatory Tender Date 01/01/2023)(1)		200,000		202,258
Mayers Memorial Hospital District:
0.000%, 08/01/2026		230,000		203,118
0.000%, 08/01/2029		165,000		132,663
Metropolitan Water District of Southern California,
0.010%, 07/01/2037 (Callable 01/21/2021)
(Optional Put Date 01/04/2021)(1)		2,500,000		2,500,000
Mizuho Floater/Residual Trust,
0.270%, 09/01/2046 (Callable 02/01/2021)
(Optional Put Date 01/07/2021)(1)(3)		1,000,000		1,000,000
Modesto Irrigation District,
0.731%, 09/01/2027 (3 Month LIBOR USD + 0.580%)
(Callable 02/01/2021) (Insured by NATL)(2)		90,000		88,885
Oxnard School District,
2.000%, 08/01/2045
(Callable 08/01/2026) (Insured by BAM)(7)		200,000		222,248
Riverside County Redevelopment Successor Agency:
0.000%, 10/01/2025 (Insured by BAM)(7)		200,000		231,292
0.000%, 10/01/2041
(Callable 10/01/2026) (Insured by BAM)(7)		80,000		90,514
Tender Option Bond Trust,
0.270%, 06/15/2055(1)(3)		1,000,000		1,000,000
Western Placer Unified School District,
2.000%, 06/01/2025 (Callable 06/01/2023)		200,000		206,348
Total California
(Cost $11,855,911)				11,923,314		7.0	%
Colorado
Colorado Educational & Cultural Facilities Authority:
5.250%, 03/01/2025 (Insured by NATL)		200,000		230,216
2.000%, 09/01/2030 (Callable 09/01/2028)		550,000		554,526
Colorado Health Facilities Authority,
4.000%, 12/01/2026 (Pre-refunded to 12/01/2022)		170,000		182,247
Colorado Housing & Finance Authority,
1.350%, 02/01/2022 (Callable 08/01/2021)		345,000		346,608

The accompanying notes are an integral part of these financial statements.

Page 305

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Denver Convention Center Hotel Authority:
5.000%, 12/01/2023	$	200,000	$	220,800
5.000%, 12/01/2024		800,000		910,088
Denver Health & Hospital Authority,
4.000%, 12/01/2028 (Callable 12/01/2023)		100,000		106,778
E-470 Public Highway Authority,
0.000%, 09/01/2029 (Insured by NATL)		50,000		44,429
Glen Metropolitan District No. 2,
2.000%, 12/01/2030 (Insured by BAM)		275,000		275,300
Poudre Tech Metropolitan District:
3.000%, 12/01/2026 (Insured by AGM)		115,000		128,086
3.000%, 12/01/2027 (Insured by AGM)		270,000		302,662
Prairie Center Metropolitan District No. 7,
4.125%, 12/15/2036 (Callable 12/15/2025)		235,000		244,362
Vauxmont Metropolitan District:
5.000%, 12/15/2032
(Callable 12/15/2024) (Insured by AGM)		135,000		157,124
3.250%, 12/15/2050
(Callable 12/15/2024) (Insured by AGM)		750,000		806,797
Total Colorado
(Cost $4,441,099)				4,510,023		2.6	%
Connecticut
Connecticut State Health & Educational Facilities Authority:
4.500%, 07/01/2024 (Callable 07/01/2021)		300,000		303,636
2.750%, 01/01/2026 (Callable 07/01/2022)(3)		200,000		201,896
3.500%, 07/01/2026		700,000		716,877
Connecticut State Higher Education
Supplement Loan Authority,
5.000%, 11/15/2026		350,000		429,600
Town of Sprague CT:
4.000%, 09/01/2021 (Insured by BAM)		50,000		51,017
4.000%, 09/01/2024 (Insured by BAM)		40,000		44,165
4.000%, 09/01/2025 (Insured by BAM)		55,000		62,080
Total Connecticut
(Cost $1,776,302)				1,809,271		1.1	%
District of Columbia
Howard University,
2.638%, 10/01/2021		150,000		151,305
Metropolitan Washington Airports Authority,
0.000%, 10/01/2036 (Insured by AGC)		1,000,000		714,690
Total District of Columbia
(Cost $793,720)				865,995		0.5	%

The accompanying notes are an integral part of these financial statements.

Page 306

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Florida
Capital Trust Agency, Inc.,
5.250%, 12/01/2024(3)	$	750,000	$	747,795
City of Jacksonville FL,
4.000%, 10/01/2033 (Callable 10/01/2026)		100,000		115,886
City of Orlando FL,
5.000%, 11/01/2025 (Insured by AGM)		180,000		216,401
County of Escambia FL,
0.060%, 07/01/2022 (Optional Put Date 01/04/2021)(1)		900,000		900,000
Florida Development Finance Corp.,
4.000%, 06/15/2025		445,000		494,520
Florida Higher Educational Facilities Financial Authority,
5.000%, 10/01/2021		225,000		229,118
Florida Housing Finance Corp.:
4.200%, 01/01/2045
(Callable 01/01/2028) (Insured by GNMA)		165,000		182,327
3.500%, 07/01/2046
(Callable 07/01/2024) (Insured by GNMA)		30,000		31,109
Halifax Hospital Medical Center,
5.000%, 06/01/2021		125,000		127,156
Hollywood Beach Community Development District I,
5.000%, 10/01/2026		520,000		642,866
JEA Water & Sewer System Revenue,
0.080%, 10/01/2038 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		700,000		700,000
Miami Health Facilities Authority,
5.000%, 07/01/2021		50,000		49,935
Orange County Convention Center,
4.000%, 10/01/2034 (Callable 10/01/2026)		300,000		341,784
Orange County Health Facilities Authority:
3.500%, 08/01/2022		150,000		155,892
5.000%, 08/01/2028 (Callable 08/01/2024)		300,000		336,282
Palm Beach County Health Facilities Authority:
5.000%, 05/15/2023		300,000		320,361
5.000%, 05/15/2031 (Callable 05/15/2027)		305,000		341,011
Pasco County School Board,
0.820%, 08/01/2032
(SIFMA Municipal Swap Index + 0.750%)
(Callable 08/04/2021)
(Mandatory Tender Date 08/02/2023)(2)		500,000		501,400
Sarasota County Health Facilities Authority,
3.000%, 05/15/2023		180,000		182,736
Sumter County Industrial Development Authority,
5.000%, 07/01/2021		100,000		102,080

The accompanying notes are an integral part of these financial statements.

Page 307

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Tender Option Bond Trust,
0.270%, 01/01/2046 (Callable 01/01/2025)
(Optional Put Date 01/07/2021)(1)(3)	$	1,000,000	$	1,000,000
UCF Stadium Corp.:
5.000%, 03/01/2024		300,000		333,399
5.000%, 03/01/2025		370,000		423,698
Total Florida
(Cost $8,386,483)				8,475,756		4.9	%
Georgia
Atlanta Development Authority,
5.000%, 07/01/2024		200,000		222,084
Burke County Development Authority,
0.050%, 07/01/2049 (Optional Put Date 01/04/2021)(1)		2,000,000		2,000,000
City of Atlanta GA,
5.000%, 12/01/2021		875,000		904,925
City of Monroe GA,
4.000%, 12/01/2035
(Callable 12/01/2030) (Insured by AGM)		500,000		619,470
Clayton County Development Authority,
4.000%, 07/01/2034 (Callable 07/01/2027)		100,000		112,595
Development Authority of Appling County,
0.060%, 09/01/2029 (Optional Put Date 01/04/2021)(1)		600,000		600,000
Development Authority of Bulloch County,
5.000%, 07/01/2029		385,000		491,945
Main Street Natural Gas, Inc.:
5.000%, 05/15/2024		65,000		74,003
0.846%, 04/01/2048
(1 Month LIBOR USD + 0.750%) (Callable 06/01/2023)
(Mandatory Tender Date 09/01/2023)(2)		460,000		460,778
0.926%, 08/01/2048 (1 Month LIBOR USD + 0.830%)
(Callable 09/01/2023)
(Mandatory Tender Date 12/01/2023)(2)		290,000		291,035
Private Colleges & Universities Authority:
5.000%, 06/01/2023		145,000		157,603
5.000%, 06/01/2027		200,000		242,520
5.250%, 10/01/2027 (Callable 10/01/2021)		525,000		539,312
0.490%, 10/01/2039
(SIFMA Municipal Swap Index + 0.420%)
(Callable 02/16/2022)
(Mandatory Tender Date 08/16/2022)(2)		300,000		299,922
Total Georgia
(Cost $6,929,674)				7,016,192		4.1	%

The accompanying notes are an integral part of these financial statements.

Page 308

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Guam
Guam Department of Education,
3.625%, 02/01/2025	$	500,000	$	503,070
Total Guam
(Cost $500,000)				503,070		0.3	%
Illinois
Chicago Park District:
5.000%, 01/01/2022		140,000		144,904
5.000%, 01/01/2024		225,000		249,397
5.000%, 01/01/2030 (Callable 01/01/2024)		50,000		54,356
4.200%, 01/01/2031 (Callable 01/01/2022)		150,000		152,927
City of Chicago IL:
4.000%, 11/01/2021		80,000		82,213
5.000%, 11/01/2022		100,000		107,336
0.000%, 01/01/2023		325,000		306,927
5.000%, 11/01/2023		125,000		139,150
0.000%, 01/01/2027 (Insured by NATL)		1,000,000		923,170
5.000%, 11/01/2027
(Callable 11/01/2026) (Insured by BAM)		100,000		123,704
Cook County Community College District No. 508,
5.250%, 12/01/2028 (Callable 12/01/2023)		325,000		347,753
Exceptional Children Have Opportunities,
4.000%, 12/01/2032 (Callable 12/01/2029)		500,000		592,980
Hoffman Estates Park District,
5.000%, 12/01/2025		500,000		563,790
Illinois Finance Authority:
4.000%, 02/15/2023		395,000		397,374
5.000%, 10/01/2023		100,000		110,996
5.000%, 11/01/2024		50,000		56,759
5.000%, 10/01/2025		150,000		177,598
4.000%, 11/01/2030		100,000		115,040
4.125%, 11/15/2037 (Callable 11/15/2025)		300,000		331,746
4.250%, 05/15/2041 (Pre-refunded to 05/15/2022)		80,000		84,402
6.000%, 10/01/2048 (Callable 10/01/2022)		600,000		625,656
Joliet Park District,
4.000%, 02/01/2033
(Callable 02/01/2023) (Insured by AGM)		150,000		155,909
Metropolitan Pier & Exposition Authority:
0.000%, 12/15/2022 (Insured by NATL)		125,000		122,159
5.000%, 12/15/2026
(Callable 06/15/2022) (Insured by ST AID)		85,000		88,839
5.000%, 12/15/2028
(Callable 06/15/2022) (Insured by ST AID)		60,000		62,521
0.000%, 06/15/2029 (Insured by NATL)		200,000		168,244

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Southern Illinois University,
5.000%, 04/01/2021	$	160,000	$	160,976
State of Illinois:
5.250%, 01/01/2021		100,000		100,000
6.000%, 06/15/2024 (Insured by NATL)		100,000		115,108
5.000%, 01/01/2026		50,000		57,089
6.000%, 06/15/2027 (Insured by NATL)		200,000		249,984
5.000%, 06/01/2028 (Callable 06/01/2026)		300,000		340,371
University of Illinois,
5.500%, 04/01/2031 (Callable 04/01/2021)		30,000		30,302
Upper Illinois River Valley Development Authority,
4.000%, 01/01/2031 (Callable 01/01/2027)(3)		200,000		206,124
Village of Crestwood IL,
4.000%, 12/15/2027
(Callable 12/15/2025) (Insured by BAM)		135,000		152,223
Will County Community High School District No. 210:
0.000%, 01/01/2028 (Insured by BAM)		310,000		276,167
4.000%, 01/01/2034
(Callable 01/01/2029) (Insured by AGM)		150,000		168,445
Total Illinois
(Cost $7,921,108)				8,142,639		4.8	%
Indiana
City of Muncie IN,
4.000%, 01/15/2022 (Insured by AGM)		160,000		164,779
Hammond Local Public Improvement Bond Bank,
2.000%, 12/31/2021		1,170,000		1,183,256
Indiana Finance Authority:
5.000%, 10/01/2032 (Callable 10/01/2023)		250,000		256,315
3.750%, 10/01/2042 (Callable 10/01/2023)		40,000		34,710
5.000%, 10/01/2042 (Callable 10/01/2023)		50,000		50,686
Indiana Health & Educational Facilities Financing Authority,
5.000%, 11/15/2046 (Callable 11/15/2026)		150,000		181,990
Indianapolis Local Public Improvement Bond Bank,
1.400%, 06/01/2021 (Callable 03/01/2021)		1,000,000		1,000,020
Lafayette School Corp.,
4.000%, 01/15/2021 (Insured by ST AID)		150,000		150,149
St. Joseph County Airport Authority,
0.010%, 07/01/2027		410,000		379,266
Total Indiana
(Cost $3,333,195)				3,401,171		2.0	%
Iowa
City of Cedar Rapids IA,
0.158%, 08/15/2029 (Insured by AMBAC)(1)(5)		1,160,000		1,116,500

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Coralville IA,
4.000%, 06/01/2024	$	200,000	$	199,840
Iowa Finance Authority,
4.000%, 07/01/2047
(Callable 07/01/2028) (Insured by GNMA)		240,000		274,272
Iowa Higher Education Loan Authority,
3.750%, 05/19/2021		300,000		301,629
Total Iowa
(Cost $1,878,204)				1,892,241		1.1	%
Kansas
City of Derby KS,
3.900%, 03/01/2037 (Callable 03/01/2025)		75,000		76,090
City of Goddard KS,
3.000%, 12/01/2022 (Callable 12/01/2021)		150,000		153,342
Kansas Independent College Finance Authority,
5.250%, 05/01/2021		175,000		176,327
Wyandotte County-Kansas City Unified Government,
0.000%, 12/01/2027 (Insured by NATL)		370,000		279,413
Total Kansas
(Cost $662,384)				685,172		0.4	%
Kentucky
County of Carroll KY,
1.200%, 02/01/2032
(Mandatory Tender Date 06/01/2021)(1)		1,000,000		1,002,020
Kentucky Asset Liability Commission,
0.693%, 11/01/2025 (3 Month LIBOR USD + 0.550%)
(Callable 02/01/2021) (Insured by NATL)(2)		620,000		611,921
Kentucky Economic Development Finance Authority,
0.000%, 10/01/2025 (Insured by NATL)		35,000		32,910
Kentucky Higher Education Student Loan Corp.,
5.000%, 06/01/2024		130,000		147,675
Kentucky Public Energy Authority:
4.000%, 01/01/2049 (Callable 10/01/2024)
(Mandatory Tender Date 01/01/2025)(1)		255,000		286,640
1.216%, 12/01/2049 (1 Month LIBOR USD + 1.120%)
(Callable 03/01/2025)
(Mandatory Tender Date 06/01/2025)(2)		100,000		100,734
4.000%, 12/01/2049 (Callable 03/01/2025)
(Mandatory Tender Date 06/01/2025)(1)		240,000		273,430
Louisville Regional Airport Authority,
0.010%, 01/01/2029 (Optional Put Date 01/04/2021)(1)		1,100,000		1,100,000
Total Kentucky
(Cost $3,508,598)				3,555,330		2.1	%

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Louisiana
City of Shreveport LA,
5.000%, 09/01/2024	$	440,000	$	491,295
Lafayette Public Trust Financing Authority,
3.000%, 10/01/2021		150,000		152,503
Louisiana Public Facilities Authority,
0.000%, 10/01/2024(7)		300,000		285,063
Louisiana Stadium & Exposition District,
5.000%, 07/03/2023 (Callable 01/01/2023)		200,000		215,678
Louisiana State University &
Agricultural & Mechanical College,
5.000%, 07/01/2027 (Callable 07/01/2024)		235,000		266,763
Total Louisiana
(Cost $1,398,537)				1,411,302		0.8	%
Maine
Maine Health & Higher Educational Facilities Authority,
5.000%, 07/01/2026		100,000		123,153
Total Maine
(Cost $110,873)				123,153		0.1	%
Maryland
Maryland Health & Higher Educational Facilities Authority:
5.000%, 01/01/2024(8)		540,000		579,857
5.000%, 01/01/2025(8)		470,000		519,209
Total Maryland
(Cost $1,096,270)				1,099,066		0.6	%
Massachusetts
Massachusetts Development Finance Agency:
5.000%, 07/15/2021(3)		100,000		101,833
5.000%, 07/15/2022(3)		115,000		120,824
5.000%, 07/15/2023(3)		115,000		125,097
5.000%, 07/15/2024(3)		125,000		139,906
5.000%, 07/15/2025(3)		65,000		74,831
Massachusetts Health & Educational Facilities Authority,
0.010%, 12/01/2037 (Callable 01/06/2021)
(Optional Put Date 01/04/2021)(1)		600,000		600,000
Total Massachusetts
(Cost $1,158,152)				1,162,491		0.7	%
Michigan
City of Detroit MI:
5.000%, 04/01/2022		250,000		259,478
5.000%, 04/01/2023		275,000		290,466
Flint Hospital Building Authority,
5.000%, 07/01/2023		100,000		105,249

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Michigan Finance Authority:
5.000%, 07/01/2024	$	230,000	$	259,564
5.000%, 07/01/2027 (Callable 07/01/2025)		160,000		190,986
5.000%, 07/01/2030 (Callable 07/01/2024)		145,000		160,034
5.000%, 07/01/2044 (Callable 07/01/2024)		130,000		139,985
Michigan State Housing Development Authority,
3.500%, 12/01/2050 (Callable 06/01/2029)		300,000		334,554
Michigan Strategic Fund,
1.450%, 09/01/2030
(Mandatory Tender Date 09/01/2021)(1)		500,000		501,695
Tender Option Bond Trust,
0.170%, 05/01/2050 (Optional Put Date 01/07/2021)
(Insured by Q-SBLF)(1)(3)		2,000,000		2,000,000
Western Michigan University,
5.000%, 11/15/2022		165,000		177,807
Total Michigan
(Cost $4,390,134)				4,419,818		2.6	%
Minnesota
Minneapolis-Saint Paul Metropolitan Airports Commission,
5.000%, 01/01/2026 (Callable 01/01/2022)		50,000		52,105
Shakopee Independent School District No. 720,
0.000%, 02/01/2021 (Insured by SD CRED PROG)		335,000		334,839
Total Minnesota
(Cost $385,714)				386,944		0.2	%
Mississippi
City of Ridgeland MS,
3.000%, 10/01/2025		325,000		343,645
Mississippi Business Finance Corp.:
2.500%, 04/01/2022 (Callable 04/01/2021)		1,000,000		1,004,070
3.200%, 09/01/2028 (Callable 03/13/2024)		1,000,000		1,060,520
0.020%, 12/01/2030 (Optional Put Date 01/04/2021)(1)		2,000,000		2,000,000
0.020%, 11/01/2035 (Optional Put Date 01/04/2021)(1)		400,000		400,000
Mississippi Hospital Equipment & Facilities Authority,
5.000%, 10/01/2040 (Callable 12/01/2026)
(Mandatory Tender Date 03/01/2027)(1)		100,000		121,664
Total Mississippi
(Cost $4,906,688)				4,929,899		2.9	%
Missouri
County of Platte MO:
3.000%, 03/01/2021		50,000		50,068
5.000%, 02/01/2025 (Callable 02/01/2023)		125,000		133,411

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Health & Educational Facilities
Authority of the State of Missouri:
5.000%, 02/01/2021	$	100,000	$	100,286
5.000%, 02/01/2022		255,000		265,626
5.000%, 02/01/2024 (Callable 02/01/2021)		250,000		250,677
5.000%, 02/01/2025 (Callable 02/01/2024)		180,000		199,935
5.000%, 09/01/2027		150,000		181,511
4.000%, 08/01/2030 (Callable 08/01/2024)		200,000		206,654
Industrial Development Authority of the City of St. Louis,
3.875%, 11/15/2029 (Callable 11/15/2026)		100,000		93,657
St. Joseph Industrial Development Authority,
3.100%, 01/01/2023		100,000		98,840
St. Louis Land Clearance for Redevelopment Authority:
4.250%, 06/01/2026		250,000		274,157
3.875%, 10/01/2035 (Callable 10/01/2029)		305,000		288,387
St. Louis Municipal Finance Corp.,
5.000%, 02/15/2025		300,000		343,095
Total Missouri
(Cost $2,430,669)				2,486,304		1.5	%
Nebraska
Central Plains Energy Project,
5.000%, 09/01/2042 (Callable 09/01/2022)		45,000		48,156
Madison County Hospital Authority No. 1:
5.000%, 07/01/2021		295,000		300,549
5.000%, 07/01/2022		520,000		549,468
Total Nebraska
(Cost $897,165)				898,173		0.5	%
Nevada
City of Las Vegas NV Special Improvement District No. 814,
3.000%, 06/01/2021		100,000		100,469
City of Sparks NV,
2.500%, 06/15/2024(3)		175,000		175,719
Clark County School District,
5.000%, 06/15/2023		100,000		110,615
Total Nevada
(Cost $365,873)				386,803		0.2	%
New Hampshire
New Hampshire Health and Education Facilities Authority,
3.150%, 04/01/2022 (Callable 11/01/2021)(3)		1,500,000		1,509,315
Total New Hampshire
(Cost $1,509,467)				1,509,315		0.9	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
New Jersey
Atlantic City Board of Education,
3.400%, 08/15/2024(3)	$	140,000	$	150,356
City of Newark NJ:
5.000%, 10/01/2021 (Insured by ST AID)		95,000		97,933
2.000%, 10/05/2021		1,000,000		1,010,120
5.000%, 10/01/2022		500,000		534,835
5.000%, 10/01/2022 (Insured by ST AID)		130,000		139,057
Essex County Improvement Authority,
5.000%, 11/01/2027		350,000		440,209
New Jersey Economic Development Authority:
1.320%, 09/01/2025
(SIFMA Municipal Swap Index + 1.250%)
(Callable 03/01/2025) (Insured by ST AID)(2)		90,000		88,902
5.000%, 03/01/2029 (Callable 03/01/2023)		200,000		214,604
New Jersey Educational Facilities Authority:
5.000%, 07/01/2026 (Pre-refunded to 07/01/2025)		55,000		66,380
5.000%, 07/01/2026 (Callable 07/01/2025)		70,000		81,980
New Jersey Housing & Mortgage Finance Agency,
3.500%, 04/01/2051 (Callable 04/01/2029)		500,000		559,180
New Jersey Transportation Trust Fund Authority:
4.000%, 06/15/2045 (Callable 12/15/2030)		300,000		335,496
5.000%, 06/15/2045 (Callable 12/15/2030)		300,000		365,226
South Jersey Port Corp.,
4.000%, 01/01/2021		250,000		250,000
State of New Jersey,
5.000%, 06/01/2029		1,300,000		1,683,747
Total New Jersey
(Cost $5,882,352)				6,018,025		3.5	%
New Mexico
City of Farmington NM,
1.875%, 04/01/2033
(Mandatory Tender Date 10/01/2021)(1)		50,000		50,491
Town of Clayton NM,
5.000%, 11/01/2026
(Callable 11/01/2025) (Insured by NATL)		185,000		213,938
Village of Los Ranchos de Albuquerque NM,
5.000%, 09/01/2027		350,000		429,965
Total New Mexico
(Cost $674,611)				694,394		0.4	%
New York
Albany Capital Resource Corp.,
5.000%, 05/01/2023		140,000		149,975

The accompanying notes are an integral part of these financial statements.

Page 315

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Albany County Capital Resource Corp.,
3.100%, 07/01/2030	$	200,000	$	187,714
Board of Cooperative Educational
Services First Supervisory District,
1.250%, 04/30/2021		750,000		751,635
City of Olean NY,
2.000%, 06/10/2021		750,000		755,123
County of Suffolk NY:
5.000%, 05/01/2021		500,000		506,785
2.000%, 07/22/2021		1,000,000		1,006,370
Dutchess County Local Development Corp.:
3.000%, 07/01/2036 (Callable 07/01/2026)		500,000		524,165
5.000%, 07/01/2045 (Callable 07/01/2030)(3)		850,000		936,309
JPMorgan Chase Putters/Drivers Trust,
0.260%, 06/01/2021
(Optional Put Date 01/04/2021)(1)(3)		600,000		600,000
Long Island Power Authority,
0.850%, 05/01/2033 (1 Month LIBOR USD + 0.750%)
(Callable 10/01/2022)
(Mandatory Tender Date 10/01/2023)(2)		850,000		850,943
Metropolitan Transportation Authority:
5.000%, 11/15/2021		90,000		92,268
5.000%, 11/15/2021		100,000		102,520
5.000%, 05/15/2022		375,000		389,828
5.000%, 11/15/2022		225,000		237,224
0.646%, 11/01/2030 (1 Month LIBOR USD + 0.550%)
(Mandatory Tender Date 11/01/2022)(2)		200,000		193,714
Monroe County Industrial Development Corp.,
5.000%, 06/01/2021		200,000		203,450
New York City Industrial Development Agency,
5.000%, 03/01/2028 (Insured by AGM)		250,000		317,952
New York City Water & Sewer System:
0.010%, 06/15/2033 (Callable 01/15/2021)
(Optional Put Date 01/04/2021)(1)		1,165,000		1,165,000
0.010%, 06/15/2038 (Optional Put Date 01/04/2021)(1)		500,000		500,000
0.020%, 06/15/2044 (Optional Put Date 01/04/2021)(1)		1,000,000		1,000,000
0.010%, 06/15/2048 (Optional Put Date 01/04/2021)(1)		500,000		500,000
0.010%, 06/15/2050 (Optional Put Date 01/04/2021)(1)		200,000		200,000
New York State Energy Research & Development Authority,
2.625%, 04/01/2034
(Mandatory Tender Date 07/03/2023)(1)		200,000		210,980
Onondaga Civic Development Corp.:
5.000%, 10/01/2023		165,000		169,922
5.000%, 10/01/2024		35,000		36,300
5.000%, 10/01/2025		225,000		234,513
4.125%, 10/01/2035 (Callable 10/01/2025)		80,000		74,177

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Onondaga County Trust for Cultural Resources:
5.000%, 05/01/2027	$	180,000	$	209,705
5.000%, 05/01/2029 (Callable 05/01/2027)		345,000		398,848
State of New York Mortgage Agency,
3.500%, 04/01/2049 (Callable 10/01/2028)		265,000		284,178
Tender Option Bond Trust,
0.400%, 11/15/2023
(Optional Put Date 01/07/2021)(3)(7)		1,000,000		1,000,000
Town of Alabama NY,
1.000%, 09/30/2021 (Callable 04/01/2021)		600,000		600,666
Town of Ramapo NY:
3.250%, 05/15/2023		200,000		196,134
3.375%, 05/15/2024 (Callable 05/15/2023)		25,000		24,486
3.000%, 11/01/2027 (Callable 11/01/2022)		100,000		93,781
4.125%, 05/15/2028 (Callable 05/15/2023)		115,000		115,065
Triborough Bridge & Tunnel Authority,
0.596%, 11/15/2027 (1 Month LIBOR USD + 0.500%)
(Callable 05/15/2021)
(Mandatory Tender Date 11/15/2021)(2)		200,000		199,946
Total New York
(Cost $14,936,737)				15,019,676		8.8	%
North Carolina
Durham Housing Authority,
2.000%, 09/01/2024 (Callable 04/01/2022)
(Mandatory Tender Date 09/01/2022)(1)		1,000,000		1,000,070
North Carolina Central University,
5.000%, 04/01/2027		410,000		498,773
Winston-Salem State University,
4.250%, 06/01/2032 (Callable 06/01/2024)		50,000		50,935
Total North Carolina
(Cost $1,531,666)				1,549,778		0.9	%
North Dakota
City of Dickinson ND,
5.000%, 10/01/2025 (Callable 10/01/2021)		165,000		168,236
City of Grand Forks ND,
5.000%, 12/01/2024		100,000		113,966
City of Horace ND:
3.000%, 05/01/2021		100,000		100,768
3.000%, 05/01/2022		215,000		221,586
1.900%, 08/01/2022 (Callable 08/01/2021)		500,000		500,395
County of Burleigh ND,
2.750%, 02/01/2022 (Callable 01/21/2021)		1,000,000		1,000,170

The accompanying notes are an integral part of these financial statements.

Page 317

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
County of McKenzie ND:
5.000%, 08/01/2023	$	300,000	$	329,103
5.000%, 08/01/2024 (Callable 08/01/2023)		400,000		438,696
County of Mercer ND,
2.000%, 05/01/2022		125,000		127,501
Jamestown Park District:
4.000%, 07/01/2031 (Callable 07/01/2024)		200,000		217,812
2.900%, 07/01/2035 (Callable 01/19/2021)		200,000		200,142
North Dakota Housing Finance Agency,
3.350%, 07/01/2031 (Callable 01/01/2027)		120,000		132,476
Total North Dakota
(Cost $3,517,125)				3,550,851		2.1	%
Ohio
City of Middleburg Heights OH:
5.000%, 08/01/2034 (Callable 08/01/2031)		200,000		253,456
5.250%, 08/01/2041 (Callable 08/01/2021)		700,000		720,538
City of West Carrollton OH,
2.500%, 10/01/2021		800,000		812,184
County of Lucas OH,
5.000%, 11/15/2021		25,000		25,750
Ohio Higher Educational Facility Commission:
5.000%, 12/01/2021		200,000		203,722
2.659%, 12/01/2023 (Insured by AMBAC)(1)		500,000		515,795
Ohio Housing Finance Agency,
3.750%, 09/01/2050
(Callable 03/01/2029) (Insured by GNMA)		155,000		175,170
Port of Greater Cincinnati Development Authority,
3.000%, 05/01/2023 (Callable 05/01/2022)		150,000		150,102
Premier Health Partners,
2.911%, 11/15/2026 (Callable 05/15/2026)		1,002,000		1,052,814
Total Ohio
(Cost $3,807,394)				3,909,531		2.3	%
Oklahoma
Oklahoma Development Finance Authority,
0.250%, 08/15/2031 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		1,000,000		1,000,000
Tulsa Industrial Authority:
5.000%, 10/01/2022		165,000		172,603
5.000%, 10/01/2023		185,000		197,922
Total Oklahoma
(Cost $1,369,900)				1,370,525		0.8	%

The accompanying notes are an integral part of these financial statements.

Page 318

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Oregon
Clackamas Community College District,
5.000%, 06/15/2038 (Callable 06/15/2027)(7)	$	125,000	$	152,982
County of Yamhill OR,
4.000%, 10/01/2021		325,000		330,171
Oregon State Facilities Authority:
5.000%, 10/01/2025		225,000		269,048
5.000%, 10/01/2028		150,000		192,693
State of Oregon Housing &
Community Services Department:
3.900%, 01/01/2033 (Callable 07/01/2023)		85,000		89,063
3.600%, 07/01/2034 (Callable 07/01/2024)		940,000		990,252
4.000%, 01/01/2047 (Callable 07/01/2025)		30,000		32,161
4.000%, 07/01/2047 (Callable 07/01/2026)		45,000		48,919
Total Oregon
(Cost $2,055,138)				2,105,289		1.2	%
Pennsylvania
Berks County Industrial Development Authority:
5.000%, 11/01/2023		300,000		319,407
5.000%, 11/01/2025		100,000		110,641
5.000%, 11/01/2026		200,000		224,270
5.000%, 11/01/2027		150,000		169,941
5.000%, 11/01/2029 (Callable 11/01/2027)		150,000		167,922
Berks County Municipal Authority,
5.000%, 02/01/2040 (Callable 08/01/2024)
(Mandatory Tender Date 02/01/2025)(1)		110,000		118,991
Bucks County Industrial Development Authority,
3.750%, 09/15/2043 (Callable 09/15/2023)		150,000		157,539
City of Bradford PA:
4.000%, 11/01/2026
(Callable 11/01/2025) (Insured by AGM)		415,000		465,327
4.000%, 11/01/2027
(Callable 11/01/2025) (Insured by AGM)		370,000		410,830
City of Philadelphia PA,
5.000%, 06/15/2027 (Callable 06/15/2021)		1,000,000		1,018,820
City of York PA,
5.000%, 11/15/2025		525,000		553,040
Crestwood School District,
2.350%, 09/01/2025
(Callable 02/01/2021) (Insured by ST AID)		400,000		400,080
Cumberland County Municipal Authority:
5.000%, 01/01/2029 (Pre-refunded to 01/01/2025)		30,000		35,481
5.000%, 01/01/2029 (Callable 01/01/2025)		145,000		160,073

The accompanying notes are an integral part of these financial statements.

Page 319

Baird Strategic Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Dauphin County General Authority,
6.250%, 10/15/2053 (Callable 10/15/2028)(3)	$	1,000,000	$	1,028,370
Dauphin County Industrial Development Authority,
6.900%, 06/01/2024		400,000		480,696
Delaware Valley Regional Finance Authority:
0.600%, 09/01/2048
(SIFMA Municipal Swap Index + 0.530%)
(Callable 09/01/2022)
(Mandatory Tender Date 09/01/2023)(2)		500,000		499,370
0.976%, 09/01/2048 (1 Month LIBOR USD + 0.880%)
(Callable 09/01/2024)
(Mandatory Tender Date 09/01/2025)(2)		1,000,000		1,001,800
East Hempfield Township Industrial
Development Authority:
5.000%, 07/01/2025		250,000		253,045
5.000%, 07/01/2030 (Callable 07/01/2023)		300,000		303,000
Lancaster Industrial Development Authority:
0.600%, 01/15/2023 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		155,000		155,000
0.600%, 02/15/2024 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		225,000		225,000
Mercer County Industrial Development Authority,
6.125%, 10/01/2050 (Callable 10/01/2025)(3)		1,000,000		1,029,440
Montgomery County Higher Education & Health Authority,
3.000%, 05/01/2036
(Mandatory Tender Date 05/01/2021)(1)		170,000		170,874
Montgomery County Industrial Development Authority:
5.000%, 11/15/2027 (Pre-refunded to 05/15/2022)		130,000		138,570
5.000%, 11/15/2036 (Callable 11/15/2026)		750,000		871,252
Northeastern Pennsylvania Hospital and Education Authority,
5.000%, 05/01/2033 (Callable 05/01/2029)		260,000		301,597
Pennsylvania Economic Development Financing Authority:
3.000%, 01/01/2021		150,000		150,000
3.000%, 01/01/2023		745,000		775,620
Pennsylvania Higher Educational Facilities Authority:
5.000%, 05/01/2025		200,000		235,000
5.000%, 07/01/2035 (Callable 07/01/2026)		600,000		602,274
Pennsylvania Housing Finance Agency,
3.200%, 04/01/2040 (Callable 10/01/2025)		205,000		215,925
Pennsylvania Turnpike Commission:
0.770%, 12/01/2023
(SIFMA Municipal Swap Index + 0.700%)
(Callable 12/01/2022)(2)		500,000		502,500
0.000%, 12/01/2040 (Callable 06/01/2029)(7)		35,000		36,850

The accompanying notes are an integral part of these financial statements.

Page 320

Baird Strategic Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Pittsburgh Water & Sewer Authority,
0.720%, 09/01/2040 (1 Month LIBOR USD + 0.650%)
(Callable 06/01/2023)
(Mandatory Tender Date 12/01/2023)
(Insured by AGM)(2)	$	1,100,000	$	1,102,662
Redevelopment Authority of the City of Philadelphia,
5.000%, 04/15/2027 (Callable 04/15/2025)		100,000		117,051
Scranton School District,
0.947%, 04/01/2031 (1 Month LIBOR USD + 0.850%)
(Callable 12/01/2022)
(Mandatory Tender Date 06/01/2023)
(Insured by ST AID)(2)		1,000,000		999,860
State Public School Building Authority:
5.000%, 12/01/2028
(Pre-refunded to 12/01/2026) (Insured by AGM)		15,000		19,043
5.000%, 12/01/2028
(Callable 12/01/2026) (Insured by AGM)		85,000		104,888
Westmoreland County Industrial Development Authority,
5.000%, 07/01/2028		575,000		704,237
Total Pennsylvania
(Cost $16,132,322)				16,336,286		9.5	%
Rhode Island
Rhode Island Health and Educational Building Corp.,
0.070%, 06/01/2035 (Callable 01/01/2021)
(Optional Put Date 01/04/2021)(1)		840,000		840,000
Total Rhode Island
(Cost $840,000)				840,000		0.5	%
South Carolina
City of Charleston SC,
0.462%, 01/01/2035 (1 Month LIBOR USD + 0.370%)
(Callable 02/01/2021)
(Mandatory Tender Date 01/01/2022)(2)		105,000		104,849
Florence-Darlington Commission for Technical Education,
5.000%, 03/01/2024 (Callable 09/01/2023)		210,000		222,724
Patriots Energy Group Financing Agency,
0.956%, 10/01/2048 (1 Month LIBOR USD + 0.860%)
(Callable 11/01/2023)
(Mandatory Tender Date 02/01/2024)(2)		850,000		853,366
South Carolina Jobs-Economic Development Authority:
4.000%, 08/15/2030 (Callable 08/15/2026)		130,000		145,408
5.250%, 08/15/2033 (Callable 08/15/2026)		350,000		415,474

The accompanying notes are an integral part of these financial statements.

Page 321

Baird Strategic Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
South Carolina State Housing
Finance & Development Authority,
3.800%, 07/01/2034
(Callable 07/01/2024) (Insured by GNMA)	$	135,000	$	139,440
South Carolina Transportation Infrastructure Bank,
0.546%, 10/01/2031 (1 Month LIBOR USD + 0.450%)
(Callable 10/01/2021)
(Mandatory Tender Date 10/01/2022)(2)		800,000		798,928
Total South Carolina
(Cost $2,636,614)				2,680,189		1.6	%
South Dakota
City of Rapid City SD,
4.000%, 12/01/2035 (Callable 12/01/2029)		250,000		281,103
South Dakota Health & Educational Facilities Authority,
5.000%, 09/01/2032 (Callable 09/01/2027)		100,000		123,187
Total South Dakota
(Cost $382,201)				404,290		0.2	%
Tennessee
City of Memphis TN,
4.000%, 12/01/2035 (Callable 12/01/2026)		500,000		580,910
City of Sevierville TN Public Building authority,
0.080%, 06/01/2032(1)		1,300,000		1,300,000
Greeneville Health & Educational Facilities Board,
1.450%, 12/01/2022
(Mandatory Tender Date 12/01/2021)(1)		150,000		151,532
Tennessee Energy Acquisition Corp.,
5.625%, 09/01/2026		1,100,000		1,356,399
Tennessee Housing Development Agency:
2.350%, 07/01/2022		25,000		25,650
4.000%, 07/01/2048 (Callable 01/01/2027)		225,000		245,252
4.500%, 07/01/2049 (Callable 01/01/2028)		45,000		50,648
Total Tennessee
(Cost $3,657,523)				3,710,391		2.2	%
Texas
Austin-Bergstrom Landhost Enterprises, Inc.,
5.000%, 10/01/2035 (Callable 10/01/2027)		700,000		762,965
Brazos Higher Education Authority, Inc.,
2.350%, 04/01/2040 (Callable 04/01/2030)		120,000		118,385
Caney Creek Municipal Utility District,
5.000%, 03/01/2024		390,000		437,014
Central Texas Regional Mobility Authority,
5.000%, 01/01/2034 (Callable 01/01/2026)		25,000		29,367

The accompanying notes are an integral part of these financial statements.

Page 322

Baird Strategic Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Austin TX,
5.250%, 05/15/2025	$	150,000	$	166,299
Clifton Higher Education Finance Corp.:
3.100%, 12/01/2022		30,000		30,499
3.950%, 12/01/2032 (Callable 12/01/2022)		265,000		271,270
County of Winkler TX,
2.000%, 02/15/2025		125,000		117,589
El Paso Downtown Development Corp.,
5.000%, 08/15/2027 (Callable 08/15/2026)		230,000		271,552
Grand Mission Municipal Utility District No. 2,
2.250%, 09/01/2028
(Callable 09/01/2023) (Insured by NATL)		95,000		96,084
Harris County Cultural Education Facilities Finance Corp.:
4.000%, 11/15/2029 (Callable 05/15/2026)		285,000		320,460
0.640%, 12/01/2049
(SIFMA Municipal Swap Index + 0.570%)
(Callable 06/01/2024)
(Mandatory Tender Date 12/04/2024)(2)		35,000		34,830
Harris County Municipal Utility District No. 406,
3.500%, 09/01/2022		100,000		104,026
Hunt Memorial Hospital District,
5.000%, 02/15/2030		1,000,000		1,260,960
Matagorda County Navigation District No. 1,
5.125%, 11/01/2028 (Insured by AMBAC)		850,000		1,084,931
Port of Port Arthur Navigation District,
0.200%, 11/01/2040 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		300,000		300,000
San Antonio Public Facilities Corp.,
4.000%, 09/15/2034 (Callable 09/15/2022)		465,000		484,135
Texas Municipal Gas Acquisition & Supply Corp. I,
1.595%, 12/15/2026 (3 Month LIBOR USD + 1.450%)
(Callable 01/04/2021)(2)		500,000		492,085
Texas Municipal Gas Acquisition and Supply Corp. II,
1.015%, 09/15/2027 (3 Month LIBOR USD + 0.870%)(2)		120,000		119,998
Total Texas
(Cost $6,407,431)				6,502,449		3.8	%
Utah
Utah Charter School Finance Authority:
3.000%, 04/15/2027 (Insured by UT CSCE)		160,000		178,888
5.000%, 04/15/2037
(Callable 04/15/2026) (Insured by UT CSCE)		270,000		312,857
5.000%, 10/15/2043
(Callable 10/15/2023) (Insured by UT CSCE)		500,000		546,490

The accompanying notes are an integral part of these financial statements.

Page 323

Baird Strategic Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Utah Housing Corp.,
4.000%, 01/01/2045
(Callable 01/01/2026) (Insured by FHA)	$	310,000	$	334,323
Total Utah
(Cost $1,354,662)				1,372,558		0.8	%
Vermont
Winooski School District,
1.250%, 10/15/2021		1,000,000		1,003,340
Total Vermont
(Cost $1,002,330)				1,003,340		0.6	%
Virginia
Toll Road Investors Partnership II LP,
0.000%, 02/15/2027(3)		1,000,000		749,896
Total Virginia
(Cost $766,896)				749,896		0.4	%
Washington
City of Seattle WA,
0.560%, 11/01/2046
(SIFMA Municipal Swap Index + 0.490%)
(Callable 11/01/2022)
(Mandatory Tender Date 11/01/2023)(2)		500,000		501,590
County of Lewis WA,
3.000%, 12/01/2026 (Callable 12/01/2022)		100,000		104,248
King County Housing Authority,
5.000%, 12/01/2030 (Callable 12/01/2026)		400,000		479,104
Pend Oreille County Public Utility District No. 1:
5.000%, 01/01/2022		225,000		232,249
5.000%, 01/01/2029 (Callable 01/01/2028)		165,000		193,479
5.000%, 01/01/2038 (Callable 01/01/2029)		300,000		345,249
Skagit County Public Hospital District No. 1,
5.000%, 12/01/2021		150,000		154,923
Vancouver Housing Authority,
1.700%, 12/01/2024		140,000		144,402
Washington Health Care Facilities Authority,
1.470%, 01/01/2035
(SIFMA Municipal Swap Index + 1.400%)
(Callable 07/01/2024)
(Mandatory Tender Date 01/01/2025)(2)		150,000		148,686
Washington State Housing Finance Commission,
4.000%, 06/01/2050
(Callable 06/01/2029) (Insured by GNMA)		295,000		334,787
Total Washington
(Cost $2,559,287)				2,638,717		1.5	%

The accompanying notes are an integral part of these financial statements.

Page 324

Baird Strategic Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
West Virginia
County of Ohio WV,
3.410%, 03/01/2021	$	500,000	$	497,890
Total West Virginia
(Cost $497,750)				497,890		0.3	%
Wisconsin
Appleton Redevelopment Authority,
0.200%, 06/01/2036 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		2,500,000		2,500,000
Mizuho Floater/Residual Trust,
0.470%, 07/01/2027
(Optional Put Date 02/04/2021)(1)(3)		830,000		830,000
Palmyra-Eagle Area School District:
2.550%, 03/01/2021		250,000		250,047
3.000%, 03/01/2025 (Callable 03/01/2023)		100,000		97,275
Public Finance Authority:
4.000%, 06/01/2022		100,000		102,594
5.000%, 07/01/2022		55,000		57,087
5.000%, 10/01/2023(3)		100,000		106,247
3.000%, 03/01/2026 (Callable 03/01/2021)(3)		700,000		700,658
Tender Option Bond Trust:
0.270%, 01/01/2035
(Optional Put Date 01/07/2021)(1)(3)		1,000,000		1,000,000
0.320%, 05/01/2054 (Callable 02/01/2021)						��
(Optional Put Date 01/07/2021)(1)(3)		1,000,000		1,000,000
Village of Mount Pleasant WI,
5.000%, 04/01/2048 (Callable 04/01/2028)		325,000		391,791
Wisconsin Center District,
0.000%, 12/15/2029 (Insured by AGM)		1,050,000		910,591
Wisconsin Health & Educational Facilities Authority:
2.700%, 05/01/2021		50,000		49,803
5.000%, 09/15/2028 (Callable 09/15/2023)		45,000		48,021
5.000%, 11/01/2029 (Callable 11/01/2026)		430,000		474,471
5.250%, 10/15/2039 (Callable 10/15/2021)		200,000		205,614
5.000%, 02/15/2051 (Callable 08/15/2026)
(Mandatory Tender Date 02/15/2027)(1)		300,000		363,903
5.000%, 02/15/2052 (Callable 08/15/2024)
(Mandatory Tender Date 02/15/2025)(1)		300,000		345,150
0.230%, 02/15/2053 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		300,000		300,000
Wisconsin Housing & Economic Development Authority:
3.000%, 07/01/2022 (Callable 07/01/2021)(3)		150,000		151,463
4.000%, 07/01/2030 (Callable 07/01/2028)(3)		135,000		140,832
Total Wisconsin
(Cost $9,893,999)				10,025,547		5.9	%

The accompanying notes are an integral part of these financial statements.

Page 325

Baird Strategic Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Wyoming
Carbon County Specific Purpose Tax Joint Powers Board:
5.000%, 06/15/2021	$	300,000	$	304,791
5.000%, 06/15/2022		435,000		456,672
Total Wyoming
(Cost $760,745)				761,463		0.4	%
Total Long-Term Investments
(Cost $168,832,130)				171,043,073		99.9	%
Short-Term Investments
U.S. Treasury Security
United States Treasury Bill, 0.07%(6), 03/25/2021		25,000		24,996
Total U.S. Treasury Security
(Cost $24,990)				24,996		0.0	%
	Shares
Money Market Mutual Fund
Federated Hermes Institutional Tax-Free
Cash Trust, Premier Shares, 0.01%(4)		182,010		182,010
Total Money Market Mutual Fund
(Cost $182,010)				182,010		0.1	%
Total Short-Term Investments
(Cost $207,000)				207,006		0.1	%
Total Investments
(Cost $169,039,130)				171,250,079		100.0	%
Other Assets in Excess of Liabilities				72,470		0.0	%
TOTAL NET ASSETS			$	171,322,549		100.0	%

Notes to Schedule of Investments

AGC – Assured Guaranty Corp.

AGM – Assured Guaranty Municipal

AMBAC – Ambac Assurance Corp.

BAM – Build America Mutual Assurance Co.

FHA – Federal Housing Administration

GNMA – Government National Mortgage Association

NATL – National Public Finance Guarantee Corp.

Q-SBLF – Qualified School Building Loan Fund

SD CRED PROG – State Credit Enhancement Program

ST AID – State Aid Intercept/Withholding

UT CSCE – Utah Charter School Credit Enhancement Program

LIBOR – London Inter-bank Offered Rate

SIFMA – Securities Industry and Financial Markets Association

The accompanying notes are an integral part of these financial statements.

Page 326

Baird Strategic Municipal Bond Fund

Schedule of Investments, December 31, 2020

Notes to Schedule of Investments (cont.)

(1)	Variable rate security. The rate reported is the rate in effect as of December 31, 2020.
(2)	Variable rate security based on a reference index and spread. The rate reported is the rate in effect as of December 31, 2020.
(3)	Security issued under Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program. Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers. At December 31, 2020, the value of these securities total $22,740,569, which represents 13.27% of total net assets.
(4)	Seven-day yield.
(5)	Auction rate security. An auction rate security is a debt instrument with a long nominal maturity for which the interest rate is regularly reset through a Dutch auction. The rate presented is either the rate set through the auction or the maximum interest rate provided for in the security issuance provision.
(6)	Effective yield as of December 31, 2020.
(7)	Step-up bond; the interest rate shown is the rate in effect as of December 31, 2020.
(8)	Security or a portion of the security purchased on a when-issued or delayed delivery basis.

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The accompanying notes are an integral part of these financial statements.

Page 327

Baird Strategic Municipal Bond Fund

Summary of Fair Value Exposure at December 31, 2020 (cont.)

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Long-Term Investments
Municipal Bonds	$	—	$	171,043,073	$	—	$	171,043,073
Total Long-Term Investments		—		171,043,073		—		171,043,073
Short-Term Investments
Money Market Mutual Fund		182,010		—		—		182,010
U.S. Treasury Security		—		24,996		—		24,996
Total Short-Term Investments		182,010		24,996		—		207,006
Total Investments	$	182,010	$	171,068,069	$	—	$	171,250,079

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 328

Baird Quality Intermediate Municipal Bond Fund

December 31, 2020 (Unaudited)

The Baird Quality Intermediate Municipal Bond Fund seeks current income that is exempt from federal income tax. As a reminder, the Fund maintains a quality focus and there are several key strategies employed on an ongoing basis that differentiate it from others in the intermediate municipal fund space. These include a consistent overweight among higher quality issues, with particular emphasis on AAA rated securities, a persistent overweight to U.S. government backed issues, and minimization of maturity extension risk.

The coronavirus (COVID-19) challenges of 2020 were unexpected and unprecedented, but so was the speed and magnitude of the monetary and fiscal responses. The result was a year of significant volatility, yet a rewarding one for Fund investors who stayed the course. Over the full year, tax-exempt rates fell sharply across the curve with short rates falling 93bps and long yields declining 68bps, steepening the curve. As the year began, no one could have known the challenges that would soon be faced. Municipal funds were benefiting from a record streak of weekly inflows, state and local tax revenues were generally rising with the economy in its eleventh year of expansion and many municipalities were adding to an already healthy level of reserves. News broke in January of COVID-19 in the State of Washington; by the end of February, seven states had confirmed cases and it was spreading rapidly. Trading activity in the municipal market initially froze as the lockdowns began, then a torrent of selling was unleashed and a liquidity crisis quickly emerged. The selling and lack of dealer support for the market drove tax-exempt yields to record highs relative to comparable maturity Treasuries. Never had a U.S. economic shock been so swift, deep and broad, affecting so many municipalities. Investors were questioning the ability of municipalities to withstand this crisis and meet their obligations. On March 27th, President Trump signed the $2.2 trillion CARES Act which, along with other measures, offered substantial aid to nearly every sector of the municipal market. In addition, the establishment of the Municipal Liquidity Facility (MLF), which, for the first time ever, allowed the Fed to lend directly to states and other select municipalities, offered investors the psychological support they were looking for. As the policymakers acted, AAA-rated municipal yields peaked on March 20th and opportunistic investors began to emerge, looking to capitalize on the incredible undervaluation that had been created in the downdraft. From a credit perspective, the further in time we moved away from the initial economic shutdowns, the better the news became on tax revenues.

During 2020, the Fund’s Institutional Class Shares generated strong absolute returns and modestly lagged its benchmark.

The primary factors contributing to the Fund’s absolute and relative performance in 2020 include:

Contributors to Performance

• Yield curve exposure and favorable relative call structure of securities

• Sector weighting – overweight to pre-refunded bonds a meaningful contributor

Detractors from Performance

• The relative price differences between pricing services used by the Fund (ICE) and its benchmark (Bloomberg BVAL)

• Security selection

Although the COVID-19 vaccinations have begun, we expect the economic impact of COVID-19 to linger well into 2021, particularly as it relates to travel and entertainment. Yet, with the massive fiscal stimulus that is already in the pipeline, and perhaps more coming now that the Democratic Party has full, albeit narrow, control of Washington, above-average economic growth is very likely this year.  This should boost state and local tax revenues helping municipalities recover from the pandemic-induced decline. With short-term rates anchored by the Fed, a steeper yield curve is likely which provides the opportunity for investors to capture the roll-down benefit as bonds age along a relatively steep curve. We expect the roll-down return to be an important component of total return this year, along with the yield advantage the Fund enjoys above that of its benchmark. Municipal credit spreads have room to narrow further, suggesting a modest credit overweight is appropriate. Strategic positioning across market sectors and the yield curve, a continued focus on credit to identify improving trends, plus the always-important security selection process will all be important to navigate through the current environment.

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We expect the Fund will maintain a neutral duration posture relative to the benchmark with an allocation that seeks to optimize the roll-down benefit of a steep, upwardly-sloping municipal curve. We also expect the Fund’s sector weightings will strongly favor a focus on the highest-rated issues including the pre-refunded and high-quality tax-exempt housing bonds, which have U.S. Federal Agency support. Finally, the Fund will seek to enhance total return through security structure and cash flow optionality.

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Portfolio Characteristics

Quality Distribution⁽¹⁾⁽²⁾

	Net Assets	$1,501,622,680
	SEC 30-Day
	Yield(4)
	Institutional Class	0.72%
	Investor Class	0.47%
	Average
	Effective
	Duration	4.10 years
	Average
	Effective
	Maturity	4.50 years
	Annualized
Sector Weightings(1)	Expense
	Ratio(5)
	Institutional Class	0.30%
	Investor Class	0.55%	(6)
	Portfolio
	Turnover Rate	15%
	Number of
	Holdings	730

(1)	Percentages shown are based on the Fund’s total investments.
(2)	The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO).  NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest).
(3)	Includes pre-refunded and escrowed-to-maturity (ETM) bonds.
(4)	SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2020.
(5)	Reflects expense ratios as stated in the Fund’s current prospectus.
(6)	Includes 0.25% 12b-1 fee.

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Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on 12/31/10, assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on 12/31/10, assuming reinvestment of all distributions.

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Total Returns

		Average Annual
	One	Five	Ten	Since
For the Periods Ended December 31, 2020	Year	Years	Years	Inception(1)
Institutional Class Shares	4.43%	2.76%	3.08%	3.98%
Investor Class Shares	4.23%	2.52%	2.83%	3.72%
Bloomberg Barclays Quality Intermediate
Municipal Bond Index(2)	4.58%	3.08%	3.51%	4.05%

(1)

For the period from March 30, 2001 (inception date) through December 31, 2020.

(2)

The Bloomberg Barclays Quality Intermediate Municipal Bond Index is an unmanaged, market value weighted index consisting of tax-exempt, fixed-rate securities that are rated A3 or better, with maturities between 2 and 12 years. Securities must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The bonds must be fixed rate, have a dated-date after December 31, 1990. This Index does not reflect any deduction for fees, expenses or taxes. A direct investment in an index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund may invest up to 25% of its total assets in municipal obligations issued by persons in the same state. As a result, changes in economic, business or political conditions of a particular state may have a disproportionate impact on the Fund’s share price. Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com.  Mutual fund performance changes over time and current performance may be lower or higher than that stated.

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Schedule of Investments, December 31, 2020

Long-Term Investments

	Principal				% of
	Amount		Value		Net Assets
Municipal Bonds
Alabama
City of Huntsville AL:
5.000%, 09/01/2029	$	2,190,000	$	2,960,004
5.000%, 09/01/2029		1,325,000		1,794,818
City of Tuscaloosa AL,
4.000%, 10/01/2028		1,000,000		1,228,210
Montgomery Water Works & Sanitary Sewer Board:
4.000%, 09/01/2033 (Callable 09/01/2029)		410,000		508,728
4.000%, 09/01/2034 (Callable 09/01/2029)		190,000		235,211
4.000%, 09/01/2035 (Callable 09/01/2029)		500,000		617,265
Total Alabama
(Cost $7,153,065)				7,344,236		0.5	%
Alaska
Alaska Housing Finance Corp.:
4.000%, 06/01/2031 (Callable 06/01/2027)		1,700,000		1,978,800
4.000%, 12/01/2031 (Callable 06/01/2027)		2,980,000		3,462,254
5.000%, 12/01/2031 (Callable 06/01/2028)		1,465,000		1,816,878
4.000%, 12/01/2032 (Callable 06/01/2027)		865,000		1,000,200
3.450%, 12/01/2033 (Callable 06/01/2027)		635,000		651,878
4.000%, 06/01/2036 (Callable 06/01/2025)		1,000,000		1,111,590
4.000%, 12/01/2048 (Callable 06/01/2027)		1,010,000		1,123,504
City of Valdez AK,
5.000%, 06/30/2029 (Callable 06/30/2022)		1,225,000		1,302,922
Total Alaska
(Cost $12,121,454)				12,448,026		0.8	%
Arizona
Arizona Industrial Development Authority,
2.500%, 05/01/2022 (Insured by AGM)(3)		7,348,635		7,398,312
Arizona State University,
5.000%, 07/01/2032 (Pre-refunded to 07/01/2022)		715,000		764,886
City of Tempe AZ:
5.000%, 07/01/2033 (Pre-refunded to 07/01/2028)		40,000		53,042
5.000%, 07/01/2034 (Pre-refunded to 07/01/2027)		165,000		213,814
5.000%, 07/01/2034 (Pre-refunded to 07/01/2028)		325,000		430,966
5.000%, 07/01/2035 (Pre-refunded to 07/01/2027)		185,000		239,730
5.000%, 07/01/2037 (Pre-refunded to 07/01/2028)		215,000		285,101
5.000%, 07/01/2038 (Pre-refunded to 07/01/2028)		350,000		464,118
City of Tucson AZ,
5.000%, 07/01/2028 (Callable 07/01/2025)		750,000		901,890
Maricopa County Unified School District No. 48:
4.000%, 07/01/2033 (Callable 07/01/2028)		500,000		601,180
3.000%, 07/01/2034 (Callable 07/01/2028)		1,350,000		1,492,357

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Salt River Project Agricultural
Improvement & Power District,
5.000%, 01/01/2034 (Callable 01/01/2027)	$	3,555,000	$	4,415,665
Total Arizona
(Cost $16,656,199)				17,261,061		1.1	%
Arkansas
City of Little Rock AR,
5.000%, 10/01/2034 (Callable 04/01/2025)		5,000,000		5,845,950
City of Pine Bluff AR,
3.000%, 02/01/2047
(Callable 08/01/2027) (Insured by BAM)		2,005,000		2,146,794
City of Rogers AR:
4.000%, 11/01/2025 (Callable 05/01/2024)		570,000		636,753
4.000%, 11/01/2027 (Callable 05/01/2024)		460,000		511,497
County of St. Francis AR,
1.250%, 08/01/2033
(Callable 08/01/2026) (Insured by BAM)		1,010,000		1,010,858
Jonesboro City Water & Light Plant:
4.000%, 06/01/2033 (Callable 12/01/2030)		500,000		623,220
4.000%, 06/01/2035 (Callable 12/01/2030)		1,360,000		1,672,609
University of Arkansas:
5.000%, 11/01/2035 (Callable 11/01/2024)		665,000		758,492
4.000%, 04/01/2037 (Callable 04/01/2029)		160,000		190,939
4.000%, 04/01/2039 (Callable 04/01/2029)		245,000		290,921
Total Arkansas
(Cost $12,941,058)				13,688,033		0.9	%
California
Anaheim Housing & Public Improvements Authority:
5.000%, 10/01/2037 (Callable 10/01/2025)		750,000		887,610
5.000%, 10/01/2038 (Callable 10/01/2025)		1,000,000		1,181,440
Antelope Valley Community College District,
0.000%, 08/01/2034 (Pre-refunded to 02/01/2025)		150,000		98,997
Aromas-San Juan Unified School District,
0.000%, 08/01/2050
(Pre-refunded to 08/01/2021) (Insured by AGM)		925,000		82,593
Brea Redevelopment Agency:
0.000%, 08/01/2033 (Callable 08/01/2027)(5)		1,500,000		1,620,195
0.000%, 08/01/2034 (Callable 08/01/2027)(5)		1,750,000		1,886,325
California Health Facilities Financing Authority,
4.000%, 08/15/2035 (Callable 08/15/2026)		2,000,000		2,317,820
California Municipal Finance Authority,
5.000%, 01/01/2028 (Pre-refunded to 01/01/2022)		1,230,000		1,286,285
Citrus Community College District,
0.000%, 08/01/2034 (Pre-refunded to 02/01/2024)(5)		885,000		918,798

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Bakersfield CA,
0.000%, 04/15/2021 (ETM)	$	12,385,000	$	12,378,808
City of Pasadena CA,
4.250%, 06/01/2034 (Callable 06/01/2023)		500,000		538,600
Commerce Community Development
Commission Successor Agency,
0.000%, 08/01/2021 (ETM)		90,000		89,841
Contra Costa Transportation Authority,
5.000%, 03/01/2028 (Callable 03/01/2025)		1,570,000		1,857,137
Department of Veterans Affairs Veteran’s
Farm & Home Purchase Program,
4.000%, 12/01/2049 (Callable 06/01/2028)		1,640,000		1,821,712
El Rancho Unified School District,
0.000%, 08/01/2035
(Pre-refunded to 08/01/2023) (Insured by BAM)		300,000		144,267
Fontana Unified School District:
3.000%, 08/01/2040
(Callable 08/01/2028) (Insured by BAM)		3,000,000		3,296,820
3.000%, 08/01/2041
(Callable 08/01/2028) (Insured by BAM)		3,000,000		3,287,220
Foothill-Eastern Transportation Corridor Agency:
0.000%, 01/01/2028 (ETM)		3,150,000		2,999,871
0.000%, 01/01/2030 (ETM)		75,000		67,836
Gateway Unified School District,
0.000%, 03/01/2037 (ETM) (Insured by AGM)		45,000		30,130
Imperial Community College District,
7.000%, 08/01/2040
(Pre-refunded to 08/01/2030) (Insured by AGM)(5)		180,000		278,775
Kern Community College District,
0.000%, 08/01/2023		2,200,000		2,169,662
La Canada Unified School District:
4.000%, 08/01/2045 (Callable 08/01/2028)		850,000		1,001,572
4.000%, 08/01/2049 (Callable 08/01/2028)		1,000,000		1,172,270
Mendocino-Lake Community College District,
0.000%, 08/01/2051
(Pre-refunded to 08/01/2021) (Insured by AGM)		1,285,000		127,151
Moorpark Unified School District,
0.000%, 08/01/2036
(Callable 08/01/2032) (Insured by AGM)(5)		385,000		406,679
Mount Diablo Unified School District,
0.000%, 08/01/2030
(Callable 08/01/2025) (Insured by AGM)(5)		150,000		167,339
Mount San Antonio Community College District,
0.000%, 08/01/2028 (Callable 02/01/2028)(5)		550,000		645,931

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Northern California Power Agency,
7.500%, 07/01/2023
(Pre-refunded to 07/01/2021) (Insured by AMBAC)	$	265,000	$	274,288
Pacheco Union Elementary School District,
0.000%, 02/01/2037 (ETM) (Insured by AGM)		300,000		202,944
Pajaro Valley Unified School District:
5.000%, 08/01/2030
(Callable 01/21/2021) (Insured by BAM)		235,000		235,423
5.000%, 08/01/2031
(Callable 01/21/2021) (Insured by BAM)		275,000		275,481
Paramount Unified School District,
0.000%, 08/01/2045
(Callable 02/01/2033) (Insured by AGM)(5)		325,000		441,971
Peralta Community College District,
3.500%, 08/01/2032 (Callable 08/01/2025)		1,715,000		1,898,145
Pittsburg Unified School District Financing Authority,
0.000%, 09/01/2040
(Pre-refunded to 09/01/2021) (Insured by AGM)		815,000		193,758
Pleasanton Unified School District,
3.000%, 08/01/2033 (Callable 08/01/2025)		2,000,000		2,143,600
Rio Hondo Community College District,
0.000%, 08/01/2042 (Callable 08/01/2034)(5)		6,760,000		9,257,414
San Diego Unified School District:
6.000%, 07/01/2033 (Pre-refunded to 07/01/2024)(5)		350,000		419,594
0.000%, 07/01/2034 (Callable 07/01/2025)		2,000,000		1,313,020
4.000%, 07/01/2034 (Callable 07/01/2027)		1,000,000		1,187,630
San Joaquin Hills Transportation Corridor Agency:
0.000%, 01/01/2023 (ETM)		14,005,000		13,919,009
0.000%, 01/01/2027 (ETM)		1,380,000		1,330,569
0.000%, 01/01/2028 (ETM)		810,000		771,395
San Marcos Unified School District:
0.000%, 08/01/2032 (Pre-refunded to 02/01/2024)		400,000		261,448
0.000%, 08/01/2038 (Pre-refunded to 02/01/2024)		1,500,000		694,965
San Mateo Foster City School District,
0.000%, 08/01/2032 (Callable 08/01/2028)(5)		125,000		151,271
San Mateo Union High School District:
5.000%, 09/01/2041 (Callable 09/01/2023)		2,105,000		2,355,158
5.000%, 12/15/2043
(Pre-refunded to 12/15/2024) (Insured by AMBAC)(5)		1,635,000		1,932,570
San Ysidro School District:
0.000%, 08/01/2042
(Pre-refunded to 08/01/2021) (Insured by AGM)		375,000		78,600
0.000%, 08/01/2043
(Pre-refunded to 08/01/2021) (Insured by AGM)		290,000		56,257
0.000%, 08/01/2050
(Pre-refunded to 08/01/2021) (Insured by AGM)		525,000		58,931

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
St. Helena Unified School District,
0.000%, 08/01/2028(5)	$	130,000	$	146,251
State of California,
5.000%, 08/01/2031 (Callable 02/01/2025)		1,100,000		1,296,284
Sutter Union High School District:
0.000%, 08/01/2030 (Pre-refunded to 08/01/2025)		185,000		128,886
0.000%, 08/01/2036 (Pre-refunded to 08/01/2025)		75,000		33,787
0.000%, 08/01/2037 (Pre-refunded to 08/01/2025)		50,000		20,972
0.000%, 08/01/2041 (Pre-refunded to 08/01/2025)		50,000		15,707
0.000%, 08/01/2043 (Pre-refunded to 08/01/2025)		200,000		54,150
0.000%, 08/01/2044 (Pre-refunded to 08/01/2025)		420,000		105,512
0.000%, 06/01/2050 (Pre-refunded to 08/01/2025)		700,000		112,385
Tustin Unified School District,
6.000%, 08/01/2028 (Callable 08/01/2021)(5)		1,310,000		1,353,427
Victor Valley Union High School District:
0.000%, 08/01/2036
(Pre-refunded to 08/01/2023) (Insured by AGM)		510,000		250,731
0.000%, 08/01/2038
(Pre-refunded to 08/01/2023) (Insured by AGM)		460,000		199,488
0.000%, 08/01/2041 (Pre-refunded to 08/01/2023)		545,000		197,623
0.000%, 08/01/2042 (Pre-refunded to 08/01/2023)		2,000,000		682,060
0.000%, 08/01/2046 (Pre-refunded to 08/01/2023)		200,000		53,478
0.000%, 08/01/2052 (Pre-refunded to 08/01/2023)		790,000		145,084
Total California
(Cost $81,583,960)				87,010,950		5.8	%
Colorado
Boulder Valley School District No. Re-2,
5.000%, 12/01/2038
(Callable 06/01/2025) (Insured by ST AID)		1,225,000		1,443,932
Brush School District No. RE-2J:
5.000%, 12/01/2031
(Callable 12/01/2027) (Insured by BAM)		380,000		479,621
5.000%, 12/01/2032
(Callable 12/01/2027) (Insured by BAM)		395,000		496,061
5.000%, 12/01/2035
(Callable 12/01/2027) (Insured by BAM)		460,000		573,532
City of Aurora CO,
5.000%, 12/01/2029		2,400,000		3,209,976
City of Fort Lupton CO,
4.000%, 12/01/2042
(Callable 12/01/2027) (Insured by AGM)		850,000		975,392
Colorado Health Facilities Authority:
0.000%, 07/15/2022 (ETM)		14,125,000		14,060,449
0.000%, 07/15/2024 (ETM)		875,000		861,534

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Colorado Health Facilities Authority: (cont.)
4.000%, 07/01/2039 (Pre-refunded to 11/09/2022)	$	100,000	$	106,781
5.250%, 01/01/2040 (Pre-refunded to 01/01/2023)		3,545,000		3,891,949
5.250%, 01/01/2045 (Pre-refunded to 01/01/2023)		335,000		368,138
5.000%, 06/01/2047 (Pre-refunded to 06/01/2027)		5,800,000		7,451,724
Dawson Ridge Metropolitan District No. 1:
0.000%, 10/01/2022 (ETM)		13,745,000		13,685,347
0.000%, 10/01/2022 (ETM)		23,840,000		23,736,534
Mesa County Valley School District No. 51,
5.500%, 12/01/2037
(Callable 12/01/2027) (Insured by ST AID)		1,000,000		1,296,400
Regional Transportation District,
4.375%, 06/01/2039 (Callable 06/01/2023)		5,725,000		6,170,233
Total Colorado
(Cost $75,349,960)				78,807,603		5.3	%
Connecticut
City of Norwalk CT,
4.000%, 09/01/2031 (Callable 09/01/2029)		1,210,000		1,517,364
Connecticut Housing Finance Authority:
2.875%, 11/15/2030 (Callable 05/15/2025)		1,500,000		1,597,425
4.000%, 11/15/2045 (Callable 05/15/2028)		6,480,000		7,171,416
4.000%, 11/15/2047 (Callable 11/15/2026)		1,175,000		1,272,114
4.000%, 05/15/2049 (Callable 11/15/2028)		2,380,000		2,714,104
State of Connecticut,
5.000%, 05/01/2026		1,300,000		1,604,915
University of Connecticut,
5.000%, 01/15/2031
(Callable 01/15/2027) (Insured by AGM)		1,250,000		1,546,988
Total Connecticut
(Cost $16,556,190)				17,424,326		1.2	%
District of Columbia
District of Columbia:
5.000%, 03/01/2036 (Callable 09/01/2029)		1,500,000		1,987,725
5.000%, 04/01/2042 (Pre-refunded to 04/01/2027)		160,000		204,963
5.000%, 10/15/2044 (Callable 04/15/2029)		1,965,000		2,522,922
District of Columbia Housing Finance Agency,
1.450%, 02/01/2039
(Mandatory Tender Date 08/01/2022)(1)		1,915,000		1,945,085
Total District of Columbia
(Cost $6,422,833)				6,660,695		0.4	%
Florida
City of Fort Myers FL,
4.000%, 12/01/2037 (Callable 12/01/2025)		480,000		529,114

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Jacksonville FL,
0.060%, 08/01/2036
(Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)	$	8,460,000	$	8,460,000
City of Miami Beach FL,
6.250%, 10/01/2022 (ETM) (Insured by AMBAC)		550,000		588,456
City of Miramar FL:
5.000%, 10/01/2029 (Callable 10/01/2027)		1,025,000		1,321,799
5.000%, 10/01/2030 (Callable 10/01/2027)		1,000,000		1,286,420
5.000%, 10/01/2034 (Callable 10/01/2027)		1,000,000		1,262,950
5.000%, 10/01/2035 (Callable 10/01/2027)		1,030,000		1,296,327
City of Orlando FL,
5.000%, 11/01/2034
(Callable 11/01/2027) (Insured by AGM)		1,000,000		1,229,600
City of Tallahassee FL:
5.000%, 10/01/2033 (Callable 10/01/2024)		255,000		296,652
5.000%, 10/01/2034 (Callable 10/01/2024)		1,010,000		1,173,337
5.000%, 10/01/2035 (Callable 10/01/2024)		825,000		957,091
City of Tampa FL:
4.125%, 10/01/2031 (Pre-refunded to 10/01/2021)		1,930,000		1,987,070
5.250%, 05/01/2043 (Callable 05/01/2028)		2,000,000		2,551,980
County of Miami-Dade FL:
5.250%, 10/01/2022 (Insured by AGM)		1,175,000		1,279,246
0.000%, 10/01/2027 (ETM) (Insured by NATL)		185,000		177,084
5.250%, 10/01/2030 (ETM) (Insured by NATL)		2,630,000		3,643,365
Florida Housing Finance Corp.:
1.940%, 08/01/2036 (Insured by FNMA)		5,000,000		5,062,200
4.200%, 01/01/2045
(Callable 01/01/2028) (Insured by GNMA)		5,990,000		6,619,010
3.800%, 07/01/2047
(Callable 01/01/2027) (Insured by GNMA)		235,000		243,350
4.000%, 07/01/2050
(Callable 07/01/2028) (Insured by GNMA)		4,145,000		4,632,203
3.500%, 07/01/2051
(Callable 07/01/2029) (Insured by GNMA)		650,000		725,744
Highlands County Health Facilities Authority:
0.070%, 11/15/2035 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		1,000,000		1,000,000
0.070%, 11/15/2037 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		4,900,000		4,900,000
JEA Electric System Revenue,
5.000%, 10/01/2023 (Pre-refunded to 04/01/2023)		690,000		763,616
JEA Water & Sewer System Revenue,
5.000%, 10/01/2028 (Pre-refunded to 04/01/2024)		755,000		869,284

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Lee County School Board,
5.000%, 08/01/2032 (Callable 08/01/2026)	$	1,650,000	$	2,013,528
Miami-Dade County Health Facilities Authority,
5.750%, 05/01/2021 (ETM) (Insured by NATL)		305,000		310,057
Mid-Bay Bridge Authority:
6.875%, 10/01/2022 (ETM)		2,110,000		2,267,216
6.875%, 10/01/2022 (ETM) (Insured by AMBAC)		1,450,000		1,566,435
Osceola County Expressway Authority,
0.000%, 10/01/2028 (ETM)(5)		95,000		107,274
Reedy Creek Improvement District,
5.000%, 10/01/2031 (Callable 10/01/2028)		310,000		392,538
School Board of Miami-Dade County,
5.000%, 03/15/2039 (Callable 03/15/2024)		2,000,000		2,241,980
School District of Broward County:
5.250%, 07/01/2022 (Pre-refunded to 07/01/2021)		8,460,000		8,672,092
5.250%, 07/01/2023 (Pre-refunded to 07/01/2021)		4,840,000		4,961,339
5.000%, 07/01/2024 (Pre-refunded to 07/01/2022)		940,000		1,006,317
Seminole County School Board,
5.000%, 07/01/2035 (Callable 07/01/2026)		145,000		175,525
Total Florida
(Cost $74,095,496)				76,570,199		5.1	%
Georgia
Atlanta Development Authority:
5.000%, 09/01/2023 (ETM)		2,450,000		2,755,735
5.000%, 09/01/2024 (Pre-refunded to 09/01/2023)		910,000		1,023,559
5.000%, 09/01/2032 (Pre-refunded to 09/01/2023)		1,315,000		1,479,099
Development Authority of Rockdale County:
5.000%, 07/01/2022		415,000		442,344
5.000%, 07/01/2023		220,000		244,755
Forsyth County Hospital Authority,
6.375%, 10/01/2028 (ETM)		7,335,000		9,130,388
Georgia Housing & Finance Authority,
3.500%, 12/01/2046 (Callable 12/01/2025)		655,000		693,383
Main Street Natural Gas, Inc.,
0.926%, 08/01/2048 (1 Month LIBOR USD + 0.830%)
(Callable 09/01/2023)
(Mandatory Tender Date 12/01/2023)(2)		1,000,000		1,003,570
Richmond County Development Authority:
0.000%, 12/01/2021 (ETM)		1,950,000		1,946,295
0.000%, 12/01/2021 (ETM)		4,030,000		4,022,343
Total Georgia
(Cost $21,694,636)				22,741,471		1.5	%

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Idaho
Ada & Boise Counties Independent School District,
5.000%, 08/01/2032 (Callable 02/01/2027)	$	500,000	$	620,585
Total Idaho
(Cost $594,346)				620,585		0.0	%
Illinois
Boone & Winnebago Counties
Community Unit School District No. 200,
0.000%, 01/01/2024 (ETM) (Insured by AGM)		720,000		696,982
City of Chicago IL:
5.000%, 01/01/2021		230,000		230,000
5.125%, 01/01/2022 (Insured by BHAC)		885,000		897,930
5.000%, 01/01/2034 (Pre-refunded to 01/01/2025)		2,170,000		2,576,007
Cook County Community High School District No. 233,
4.000%, 12/01/2026 (Callable 06/01/2022)		2,695,000		2,833,173
Cook County Forest Preserve District,
5.000%, 12/15/2037 (Callable 06/15/2022)		1,070,000		1,131,974
Cook County School District No. 130,
5.000%, 12/01/2026
(Callable 12/01/2025) (Insured by AGM)		1,140,000		1,384,804
Cook County School District No. 144,
4.500%, 12/01/2025 (ETM) (Insured by AGM)		5,000		5,430
Cook County School District No. 159:
0.000%, 12/01/2022 (ETM)		2,000,000		1,986,340
0.000%, 12/01/2025 (ETM)		400,000		390,320
0.000%, 12/01/2028 (ETM)		295,000		275,866
Cook County School District No. 163:
6.000%, 12/15/2026 (Insured by BAM)		1,165,000		1,494,567
5.000%, 12/15/2028 (Insured by BAM)		1,305,000		1,660,769
County of Cook IL:
5.000%, 11/15/2033 (Callable 11/15/2027)		3,000,000		3,722,010
5.000%, 11/15/2034 (Callable 11/15/2027)		4,325,000		5,358,199
County of Du Page IL,
5.600%, 01/01/2021		180,000		180,000
Exceptional Children Have Opportunities:
5.000%, 12/01/2027		340,000		424,833
5.000%, 12/01/2027		270,000		337,368
5.000%, 12/01/2028		585,000		742,441
5.000%, 12/01/2029		615,000		799,463
5.000%, 12/01/2030 (Callable 12/01/2029)		645,000		854,032
5.000%, 12/01/2031 (Callable 12/01/2029)		675,000		890,109
4.000%, 12/01/2032 (Callable 12/01/2029)		210,000		249,052
4.000%, 12/01/2033 (Callable 12/01/2029)		740,000		872,630

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Illinois Development Finance Authority:
0.000%, 07/15/2023 (ETM)	$	27,625,000	$	27,347,369
0.000%, 07/15/2025 (ETM)		51,620,000		50,465,777
2.450%, 11/15/2039
(Mandatory Tender Date 03/03/2026)(1)		2,230,000		2,407,731
Illinois Finance Authority:
5.000%, 02/15/2022		1,095,000		1,148,392
5.000%, 12/01/2030 (Pre-refunded to 12/01/2021)		6,875,000		7,174,062
5.000%, 07/01/2031 (Callable 01/01/2026)		1,200,000		1,467,852
4.000%, 01/15/2033 (Callable 01/15/2028)		2,170,000		2,595,103
5.000%, 07/01/2033 (Callable 01/01/2027)		705,000		882,033
5.000%, 08/01/2033 (Pre-refunded to 08/01/2024)		700,000		817,901
4.000%, 01/01/2034 (Callable 01/01/2026)		1,030,000		1,175,920
4.000%, 07/01/2035 (Callable 01/01/2026)		1,000,000		1,139,440
5.000%, 02/15/2036 (Callable 02/15/2027)		215,000		263,756
4.000%, 12/01/2036 (Callable 12/01/2028)		1,000,000		1,205,270
4.000%, 12/01/2037 (Callable 12/01/2028)		2,995,000		3,608,017
4.000%, 07/01/2041 (Callable 01/01/2031)		5,000,000		6,142,150
4.000%, 05/01/2044 (Callable 05/01/2025)		135,000		156,118
Illinois Housing Development Authority:
2.550%, 04/01/2025 (Insured by GNMA)		1,400,000		1,499,204
3.100%, 02/01/2035 (Callable 02/01/2026)		2,500,000		2,660,650
3.500%, 08/01/2046 (Callable 02/01/2026)		535,000		572,702
4.000%, 08/01/2048
(Callable 08/01/2027) (Insured by GNMA)		670,000		738,903
4.250%, 10/01/2049 (Callable 04/01/2028)		9,960,000		11,138,666
Kane County Community Unit School District No. 304:
9.000%, 01/01/2023 (ETM) (Insured by AGM)		805,000		943,066
9.000%, 01/01/2023 (Insured by AGM)		2,720,000		3,184,712
Kane McHenry Cook & De Kalb
Counties Unit School District No. 300,
5.000%, 01/01/2032 (Callable 01/01/2027)		2,060,000		2,544,697
Knox & Warren Counties Community
Unit School District No. 205:
4.000%, 12/01/2034
(Callable 12/01/2027) (Insured by BAM)		425,000		489,502
4.000%, 12/01/2039
(Callable 12/01/2027) (Insured by BAM)		1,305,000		1,485,769
Lake County Community
Consolidated School District No. 50:
5.000%, 01/01/2021 (ETM)		910,000		910,000
5.000%, 01/01/2021		465,000		465,000
Lake County Township High School District No. 113,
5.000%, 01/01/2034 (Pre-refunded to 01/01/2023)		3,675,000		4,028,057

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
McHenry County Community
Consolidated School District No. 47,
4.000%, 02/01/2032 (Callable 02/01/2028)	$	850,000	$	994,177
Metropolitan Pier & Exposition Authority,
5.500%, 12/15/2023 (ETM)		1,335,000		1,435,339
Metropolitan Water Reclamation
District of Greater Chicago:
5.000%, 12/01/2031 (Callable 12/01/2021)		4,800,000		4,999,344
5.000%, 12/01/2034 (Callable 12/01/2026)		295,000		362,118
Regional Transportation Authority:
6.700%, 11/01/2021 (Insured by NATL)		210,000		221,208
6.000%, 07/01/2022 (Insured by NATL)		3,705,000		4,017,331
6.000%, 07/01/2027 (Insured by AGM)		1,000,000		1,310,820
Southwestern Illinois Development Authority,
7.625%, 11/01/2048 (Pre-refunded to 11/01/2023)		6,185,000		7,439,689
State of Illinois:
6.500%, 06/15/2022		80,000		82,442
4.000%, 06/15/2038
(Callable 06/15/2028) (Insured by BAM)		1,850,000		2,036,092
Village of Carpentersville IL,
4.000%, 12/30/2030
(Callable 12/30/2028) (Insured by BAM)		1,920,000		2,319,456
Village of Schaumburg IL,
4.000%, 12/01/2024 (Callable 12/01/2022)		5,750,000		6,154,052
Will County Community Consolidated
School District No. 157-C,
2.300%, 01/01/2021		100,000		100,000
Will County Community High School District No. 210:
0.000%, 01/01/2024 (ETM) (Insured by AGM)		1,355,000		1,333,333
0.000%, 01/01/2025 (ETM) (Insured by AGM)		110,000		107,488
Will County Community Unit School District No. 201-U,
0.000%, 11/01/2024 (ETM) (Insured by NATL)		705,000		690,089
Will County Elementary School District No. 122,
0.000%, 10/01/2027 (ETM) (Insured by AGM)		470,000		446,876
Total Illinois
(Cost $190,024,909)				202,701,972		13.5	%
Indiana
Carmel Redevelopment Authority,
4.000%, 08/01/2033 (Pre-refunded to 08/01/2022)		1,000,000		1,059,620
Columbus Multi-High School Building Corp.:
5.000%, 01/15/2026 (Insured by ST AID)		1,125,000		1,377,765
5.000%, 01/15/2027 (Insured by ST AID)		1,265,000		1,594,545
5.000%, 07/15/2028 (Insured by ST AID)		1,000,000		1,310,080

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Fishers Redevelopment Authority:
4.000%, 07/15/2027	$	200,000	$	242,192
4.000%, 01/15/2028		330,000		402,920
4.000%, 07/15/2028		335,000		411,930
4.000%, 07/15/2029 (Callable 01/15/2029)		540,000		667,645
4.000%, 07/15/2030 (Callable 01/15/2029)		725,000		890,104
Fort Wayne Redevelopment Authority,
5.000%, 02/01/2025
(Callable 02/01/2024) (Insured by ST AID)		335,000		382,101
Indiana Health & Educational
Facilities Financing Authority,
4.000%, 11/15/2046 (Callable 11/15/2026)		1,780,000		2,019,303
Indiana Health Facility Financing Authority,
2.000%, 11/15/2036 (Pre-refunded to 02/01/2023)(1)		110,000		113,466
Indianapolis Local Public Improvement Bond Bank,
5.000%, 01/01/2033 (Pre-refunded to 01/01/2025)		1,780,000		2,116,936
Kankakee Valley Middle School Building Corp.:
5.000%, 01/15/2029 (Insured by ST AID)		475,000		628,720
5.000%, 07/15/2029 (Insured by ST AID)		1,180,000		1,578,970
Kokomo-Center School Building Corp.,
5.000%, 01/15/2037
(Callable 07/15/2027) (Insured by ST AID)		500,000		603,985
Northern Wells Multi-School Building Corp.,
4.000%, 07/15/2035
(Callable 07/15/2027) (Insured by ST AID)		160,000		184,352
Total Indiana
(Cost $14,398,965)				15,584,634		1.0	%
Iowa
County of Washington IA,
4.000%, 06/01/2030 (Callable 06/01/2026)		1,015,000		1,167,971
Iowa Finance Authority:
5.000%, 08/01/2028 (Pre-refunded to 08/01/2026)		3,625,000		4,574,931
5.000%, 08/01/2035 (Callable 08/01/2025)		950,000		1,127,270
4.000%, 07/01/2047
(Callable 07/01/2027) (Insured by GNMA)		675,000		739,037
4.000%, 07/01/2047
(Callable 07/01/2028) (Insured by GNMA)		1,235,000		1,411,358
3.250%, 07/01/2050
(Callable 07/01/2029) (Insured by GNMA)		1,725,000		1,911,007
Iowa Higher Education Loan Authority:
4.500%, 10/01/2033 (Pre-refunded to 10/01/2021)		2,100,000		2,166,318
5.000%, 10/01/2038 (Pre-refunded to 10/01/2021)		2,090,000		2,163,714
University of Iowa,
4.000%, 07/01/2033 (Callable 07/01/2027)		655,000		768,721
Total Iowa
(Cost $15,483,300)				16,030,327		1.1	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Kansas
Crawford County Unified School District No. 250,
5.000%, 09/01/2035
(Callable 09/01/2027) (Insured by BAM)	$	445,000	$	565,043
Johnson County Unified School District No. 512,
4.000%, 10/01/2035 (Callable 10/01/2025)		300,000		341,106
Kansas Development Finance Authority,
5.000%, 11/15/2032 (Callable 05/15/2022)		1,955,000		2,069,387
Shawnee County Unified School District No. 501,
2.000%, 08/01/2044 (Pre-refunded to 08/01/2026)		85,000		92,095
Total Kansas
(Cost $2,992,510)				3,067,631		0.2	%
Kentucky
Louisville & Jefferson County Metropolitan Government,
5.000%, 12/01/2035 (Callable 06/01/2022)		1,320,000		1,407,912
Total Kentucky
(Cost $1,390,148)				1,407,912		0.1	%
Louisiana
Caddo Parish Commission,
5.000%, 02/01/2028 (Callable 02/01/2025)		530,000		624,170
Jefferson Parish Hospital Service District No. 1,
6.000%, 01/01/2039 (Pre-refunded to 01/01/2021)		1,080,000		1,080,000
Jefferson Sales Tax District,
4.000%, 12/01/2032
(Callable 12/01/2029) (Insured by AGM)		1,300,000		1,571,544
Louisiana Public Facilities Authority:
5.500%, 05/15/2027 (Pre-refunded to 05/15/2026)		26,700,000		32,182,044
5.500%, 05/15/2032 (Pre-refunded to 05/15/2026)		22,180,000		28,160,172
State of Louisiana,
5.000%, 05/01/2027 (Pre-refunded to 05/01/2022)		1,420,000		1,509,957
Webster Parish School District No. 6:
5.000%, 03/01/2025 (Insured by AGM)		425,000		501,959
5.000%, 03/01/2026 (Insured by AGM)		635,000		774,224
5.000%, 03/01/2027 (Insured by AGM)		620,000		775,762
5.000%, 03/01/2028 (Insured by AGM)		755,000		966,204
4.000%, 03/01/2030
(Callable 03/01/2029) (Insured by AGM)		665,000		806,738
4.000%, 03/01/2031
(Callable 03/01/2029) (Insured by AGM)		840,000		1,010,982
Total Louisiana
(Cost $63,886,805)				69,963,756		4.7	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Maryland
City of Baltimore MD:
5.000%, 07/01/2024 (ETM)	$	1,220,000	$	1,343,525
5.000%, 07/01/2028 (ETM)		250,000		294,417
Maryland Community Development Administration,
0.625%, 07/01/2022 (Callable 01/01/2022)		500,000		500,500
Maryland Health & Higher
Educational Facilities Authority:
5.250%, 07/01/2026 (Pre-refunded to 07/01/2024)		285,000		333,385
5.000%, 07/01/2027 (ETM) (Insured by AMBAC)		1,740,000		2,031,502
State of Maryland:
4.000%, 06/01/2030 (Callable 06/01/2024)		5,790,000		6,459,092
4.000%, 08/01/2030 (Callable 08/01/2027)		2,130,000		2,585,458
5.000%, 08/01/2031 (Callable 08/01/2028)		9,835,000		12,904,504
Total Maryland
(Cost $24,211,904)				26,452,383		1.8	%
Massachusetts
Commonwealth of Massachusetts,
4.500%, 12/01/2043 (Pre-refunded to 12/01/2021)		1,235,000		1,283,709
Massachusetts Department of Transportation,
5.125%, 01/01/2023 (ETM)		940,000		982,394
Massachusetts Development Finance Agency,
5.000%, 07/15/2033 (Callable 07/15/2026)		1,470,000		1,824,593
Massachusetts Housing Finance Agency:
0.875%, 12/01/2023 (Callable 06/01/2022)		1,000,000		1,005,270
4.000%, 12/01/2044 (Callable 06/01/2025)		810,000		860,730
4.000%, 12/01/2048
(Callable 06/01/2027) (Insured by GNMA)		1,345,000		1,471,686
4.000%, 06/01/2049 (Callable 12/01/2028)		625,000		693,987
Massachusetts State College Building Authority,
0.000%, 05/01/2027 (ETM) (Insured by NATL)		335,000		323,158
Total Massachusetts
(Cost $8,209,102)				8,445,527		0.6	%
Michigan
Algonac Community Schools:
4.000%, 05/01/2028
(Callable 05/01/2027) (Insured by Q-SBLF)		175,000		208,693
4.000%, 05/01/2029
(Callable 05/01/2027) (Insured by Q-SBLF)		370,000		437,455
4.000%, 05/01/2030
(Callable 05/01/2027) (Insured by Q-SBLF)		470,000		551,333
Brighton Area School District,
5.000%, 05/01/2021 (Insured by Q-SBLF)		500,000		507,180

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Chippewa Hills School District,
4.000%, 05/01/2033
(Callable 05/01/2025) (Insured by Q-SBLF)	$	300,000	$	333,783
Ecorse Public School District,
5.000%, 05/01/2027 (Insured by Q-SBLF)		515,000		652,572
Fraser Public School District,
5.000%, 05/01/2024 (Insured by Q-SBLF)		1,000,000		1,150,810
Michigan Finance Authority,
5.000%, 06/01/2027 (Pre-refunded to 06/01/2022)		1,315,000		1,403,552
Michigan State Housing Development Authority:
2.700%, 12/01/2034 (Callable 12/01/2028)		4,700,000		5,041,173
4.250%, 12/01/2049 (Callable 06/01/2028)		4,125,000		4,624,290
3.500%, 12/01/2050 (Callable 06/01/2029)		6,925,000		7,722,622
Pinckney Community Schools:
5.000%, 05/01/2022 (Insured by Q-SBLF)		1,935,000		2,050,926
5.000%, 05/01/2023 (Insured by Q-SBLF)		2,200,000		2,424,774
State of Michigan,
0.000%, 06/01/2022 (ETM) (Insured by AMBAC)		2,085,000		2,074,783
Swartz Creek Community Schools,
5.000%, 05/01/2038
(Callable 05/01/2029) (Insured by Q-SBLF)		1,000,000		1,280,450
Utica Community Schools,
5.000%, 05/01/2034
(Callable 05/01/2029) (Insured by Q-SBLF)		305,000		393,670
Warren Consolidated Schools:
5.000%, 05/01/2033
(Callable 05/01/2026) (Insured by Q-SBLF)		2,595,000		3,123,420
5.000%, 05/01/2033
(Callable 05/01/2026) (Insured by Q-SBLF)		4,660,000		5,608,916
5.000%, 05/01/2035
(Callable 05/01/2026) (Insured by Q-SBLF)		925,000		1,104,357
Total Michigan
(Cost $38,358,679)				40,694,759		2.7	%
Minnesota
Brainerd Independent School District No. 181,
4.000%, 02/01/2026 (Insured by SD CRED PROG)		660,000		773,837
County of Hennepin MN:
4.000%, 12/01/2025 (Callable 12/01/2022)		3,000,000		3,216,930
5.000%, 12/01/2041 (Callable 12/01/2026)		1,000,000		1,232,690
Maple River Independent School District No. 2135,
4.000%, 02/01/2039
(Callable 02/01/2030) (Insured by SD CRED PROG)		2,095,000		2,561,180
Minneapolis-Saint Paul Metropolitan Airports Commission,
5.000%, 01/01/2032 (Callable 01/01/2027)		505,000		618,873

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Minnesota Housing Finance Agency:
4.500%, 07/01/2034
(Callable 07/01/2021) (Insured by GNMA)	$	55,000	$	55,996
4.000%, 07/01/2047
(Callable 01/01/2027) (Insured by GNMA)		325,000		352,066
4.250%, 07/01/2049
(Callable 07/01/2028) (Insured by GNMA)		1,255,000		1,412,327
Pipestone-Jasper Independent School District No. 2689,
4.000%, 02/01/2032
(Callable 02/01/2029) (Insured by SD CRED PROG)		580,000		711,271
State of Minnesota,
5.000%, 08/01/2037 (Callable 08/01/2029)		3,245,000		4,306,115
Total Minnesota
(Cost $14,669,712)				15,241,285		1.0	%
Mississippi
Mississippi Development Bank:
5.000%, 03/01/2029 (Callable 03/01/2027)		825,000		1,028,313
5.250%, 03/01/2035 (Callable 03/01/2028)		495,000		621,121
Oxford School District,
4.000%, 05/01/2027		500,000		600,615
State of Mississippi,
5.000%, 10/01/2028 (Callable 10/01/2027)		1,130,000		1,453,056
West Rankin Utility Authority,
5.000%, 01/01/2038
(Callable 01/01/2025) (Insured by AGM)		550,000		630,157
Total Mississippi
(Cost $3,904,094)				4,333,262		0.3	%
Missouri
Independence School District,
5.500%, 03/01/2035
(Callable 03/01/2027) (Insured by ST AID)		955,000		1,215,285
Jackson County School District No. R-IV,
5.500%, 03/01/2037
(Callable 03/01/2029) (Insured by ST AID)		1,040,000		1,397,604
Metropolitan St. Louis Sewer District,
5.000%, 05/01/2036 (Callable 05/01/2025)		1,275,000		1,517,224
Missouri Housing Development Commission:
1.950%, 05/01/2025 (Insured by GNMA)		85,000		88,975
3.950%, 11/01/2040
(Callable 05/01/2025) (Insured by GNMA)		1,255,000		1,283,978
Moberly School District No. 81,
4.000%, 03/01/2030
(Callable 03/01/2027) (Insured by ST AID)		315,000		372,235

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
St. Louis County School District,
4.000%, 03/01/2031 (Callable 03/01/2025)	$	1,480,000	$	1,672,208
Total Missouri
(Cost $7,063,753)				7,547,509		0.5	%
Montana
Flathead County School District No. 44,
4.000%, 07/01/2036 (Callable 07/01/2028)		210,000		247,317
Montana Facility Finance Authority:
5.000%, 07/01/2028 (Callable 07/01/2027)		430,000		544,264
5.000%, 07/01/2029 (Callable 07/01/2027)		535,000		673,249
Total Montana
(Cost $1,335,321)				1,464,830		0.1	%
Nebraska
City of Lincoln NE,
5.000%, 04/01/2023		290,000		321,334
Nebraska Educational Health Cultural &
Social Services Finance Authority:
4.000%, 01/01/2033 (Callable 01/01/2026)		400,000		456,488
4.000%, 01/01/2034 (Callable 01/01/2026)		2,000,000		2,273,920
4.000%, 01/01/2035 (Callable 01/01/2026)		1,000,000		1,134,360
Nebraska Investment Finance Authority,
3.500%, 09/01/2050
(Callable 03/01/2029) (Insured by GNMA)		1,965,000		2,189,305
Omaha School District,
4.000%, 12/15/2033 (Callable 12/15/2028)		1,125,000		1,364,569
University of Nebraska:
3.000%, 07/01/2028 (Pre-refunded to 07/01/2026)		30,000		34,441
3.000%, 05/15/2035 (Pre-refunded to 05/15/2026)		20,000		22,893
3.000%, 07/01/2039 (Pre-refunded to 07/01/2026)		15,000		17,221
Village of Boys Town NE,
3.000%, 09/01/2028		150,000		172,084
Total Nebraska
(Cost $7,695,091)				7,986,615		0.5	%
Nevada
County of Clark NV:
5.000%, 07/01/2033 (Callable 07/01/2024)		1,925,000		2,188,706
5.000%, 07/01/2035 (Callable 07/01/2025)		430,000		502,657
Total Nevada
(Cost $2,555,224)				2,691,363		0.2	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
New Hampshire
New Hampshire Health and Education Facilities Authority,
0.070%, 10/01/2030 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)	$	1,000,000	$	1,000,000
New Hampshire Housing Finance Authority,
5.250%, 07/01/2028 (Callable 01/01/2021)		20,000		20,000
Total New Hampshire
(Cost $1,020,000)				1,020,000		0.1	%
New Jersey
New Jersey Building Authority,
5.000%, 06/15/2024 (ETM)		1,410,000		1,636,911
New Jersey Economic Development Authority,
5.250%, 07/01/2025		1,285,000		1,537,181
New Jersey Educational Facilities Authority,
5.000%, 07/01/2044 (Callable 07/01/2024)		615,000		698,708
New Jersey Health Care Facilities Financing Authority:
0.000%, 07/01/2023 (ETM) (Insured by NATL)		10,000		9,913
3.750%, 07/01/2027 (ETM)		205,000		230,674
New Jersey Housing & Mortgage Finance Agency:
0.750%, 05/01/2023
(Mandatory Tender Date 06/01/2022)(1)		5,800,000		5,825,056
6.000%, 11/01/2023 (Pre-refunded to 02/01/2021)		30,000		31,441
4.500%, 10/01/2048 (Callable 10/01/2027)		1,290,000		1,454,527
2.450%, 10/01/2050 (Callable 04/01/2029)		650,000		655,324
New Jersey Transportation Trust Fund Authority:
0.000%, 12/15/2026 (Insured by BHAC)		1,210,000		1,144,757
0.000%, 12/15/2030		960,000		826,483
Total New Jersey
(Cost $13,643,988)				14,050,975		0.9	%
New Mexico
Jal Public School District No. 19,
2.750%, 10/01/2027
(Pre-refunded to 10/01/2023) (Insured by ST AID)		600,000		640,236
New Mexico Finance Authority,
4.000%, 06/01/2029 (Callable 06/01/2026)		2,615,000		3,075,946
New Mexico Mortgage Finance Authority:
3.500%, 07/01/2033
(Callable 01/01/2028) (Insured by GNMA)		1,150,000		1,284,263
3.950%, 09/01/2040
(Callable 09/01/2024) (Insured by GNMA)		990,000		1,054,825
New Mexico Mortgage Financial Authority:
4.625%, 09/01/2025
(Callable 02/01/2021) (Insured by GNMA)		220,000		221,027

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal					% of
	Amount			Value		Net Assets
New Mexico Mortgage Financial Authority: (cont.)
3.550%, 09/01/2037
(Callable 03/01/2027) (Insured by GNMA)	$	1,135,000		$	1,241,123
Ruidoso Municipal School District No. 3,
4.000%, 08/01/2032
(Callable 08/01/2026) (Insured by ST AID)		115,000			132,649
Total New Mexico
(Cost $7,161,219)					7,650,069		0.5	%
New York
City of New York NY:
5.000%, 08/01/2022		5,000,000			5,368,300
5.000%, 12/01/2041 (Callable 12/01/2028)		1,125,000			1,411,245
Metropolitan Transportation Authority,
5.000%, 11/15/2028 (Pre-refunded to 11/15/2023)		210,000			239,001
New York City Transitional Finance Authority:
5.000%, 08/01/2029 (Callable 08/01/2026)		1,550,000			1,899,060
5.000%, 08/01/2030 (Callable 08/01/2024)		2,500,000			2,899,175
5.000%, 08/01/2033 (Callable 08/01/2026)		2,835,000			3,435,595
5.000%, 05/01/2035 (Callable 05/01/2028)		4,000,000			5,052,480
5.000%, 05/01/2042 (Callable 05/01/2027)		500,000	��		605,095
New York City Water & Sewer System:
5.000%, 06/15/2032 (Callable 12/15/2025)		6,500,000			7,920,640
5.000%, 06/15/2035 (Callable 12/15/2025)		500,000			606,825
4.000%, 06/15/2040 (Callable 12/15/2029)		500,000			602,295
5.000%, 06/15/2040 (Callable 12/15/2027)		2,000,000			2,538,120
5.000%, 06/15/2040 (Callable 12/15/2027)		1,800,000			2,284,308
5.000%, 06/15/2040 (Callable 06/15/2028)		2,000,000			2,526,300
New York Liberty Development Corp.,
4.000%, 09/15/2035 (Callable 03/15/2022)		3,000,000			3,108,090
New York State Dormitory Authority:
5.000%, 03/15/2030 (Callable 03/15/2024)		3,735,000			4,255,173
5.000%, 03/15/2033 (Callable 03/15/2025)		5,050,000			5,972,736
5.000%, 03/15/2037 (Callable 09/15/2025)		155,000			183,576
5.250%, 03/15/2039 (Callable 09/15/2028)		3,700,000			4,737,184
5.000%, 03/15/2048 (Callable 09/15/2028)		4,550,000			5,679,947
New York State Environmental Facilities Corp.,
5.500%, 10/15/2030 (ETM)		390,000			556,058
New York State Housing Finance Agency,
1.600%, 11/01/2024 (Callable 12/01/2021)		5,895,000			5,958,961
New York State Urban Development Corp.:
5.000%, 03/15/2022		2,015,000			2,131,830
5.000%, 03/15/2032 (Callable 03/15/2024)		6,000,000			6,831,480
State of New York Mortgage Agency,
4.000%, 10/01/2049 (Callable 04/01/2028)		4,345,000			4,799,139

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Triborough Bridge & Tunnel Authority,
0.596%, 11/15/2027 (1 Month LIBOR USD + 0.500%)
(Callable 05/15/2021)
(Mandatory Tender Date 11/15/2021)(2)	$	3,180,000	$	3,179,141
Total New York
(Cost $81,003,928)				84,781,754		5.6	%
North Carolina
City of Charlotte NC,
5.000%, 07/01/2031 (Callable 07/01/2028)		2,580,000		3,371,234
County of Wake NC,
5.000%, 08/01/2026		1,715,000		2,163,010
Inlivian,
2.550%, 05/01/2037		4,994,078		5,254,370
North Carolina Eastern Municipal Power Agency:
6.400%, 01/01/2021 (ETM)		932,000		932,000
4.500%, 01/01/2024 (Pre-refunded to 01/01/2022)		7,245,000		7,322,304
North Carolina Housing Finance Agency:
4.000%, 01/01/2050 (Callable 07/01/2028)		1,185,000		1,326,750
4.000%, 07/01/2050 (Callable 07/01/2029)		1,800,000		2,041,578
North Carolina Medical Care Commission,
5.750%, 01/01/2035 (Pre-refunded to 01/01/2021)		525,000		525,000
State of North Carolina,
5.000%, 05/01/2024 (Callable 05/01/2023)		1,000,000		1,110,820
University of North Carolina at Chapel Hill:
0.446%, 12/01/2034 (1 Month LIBOR USD + 0.350%)
(Callable 06/01/2021)
(Mandatory Tender Date 12/01/2021)(2)		200,000		199,992
0.496%, 12/01/2041 (1 Month LIBOR USD + 0.400%)
(Callable 03/09/2022)
(Mandatory Tender Date 11/09/2022)(2)		7,000,000		7,004,270
Total North Carolina
(Cost $30,680,974)				31,251,328		2.1	%
North Dakota
County of Burleigh ND:
5.000%, 07/01/2025 (Pre-refunded to 07/01/2021)		1,500,000		1,532,775
5.000%, 07/01/2029 (Pre-refunded to 07/01/2021)		470,000		480,270
4.000%, 11/01/2029
(Pre-refunded to 11/01/2022) (Insured by AGM)		425,000		454,278
North Dakota Housing Finance Agency:
3.550%, 07/01/2033 (Callable 01/01/2028)		2,605,000		2,867,167
3.450%, 07/01/2037
(Callable 07/01/2026) (Insured by FHA)		2,555,000		2,756,973
3.500%, 07/01/2046 (Callable 01/01/2026)		1,005,000		1,081,460
4.000%, 01/01/2050 (Callable 07/01/2028)		1,230,000		1,406,739

The accompanying notes are an integral part of these financial statements.

Page 353

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
North Dakota Public Finance Authority,
5.000%, 10/01/2032 (Callable 10/01/2028)	$	2,640,000	$	3,442,111
Total North Dakota
(Cost $13,467,592)				14,021,773		0.9	%
Ohio
Akron Bath Copley Joint Township Hospital District,
3.800%, 01/01/2027 (Pre-refunded to 01/01/2022)		815,000		838,268
City of Cleveland OH:
5.000%, 12/01/2029 (Pre-refunded to 12/01/2022)		850,000		928,243
5.000%, 12/01/2029 (Callable 12/01/2022)		10,000		10,853
City of Delaware OH,
4.000%, 12/01/2033 (Callable 12/01/2024)		200,000		222,342
City of Oxford OH,
4.000%, 12/01/2033 (Callable 12/01/2026)		40,000		46,512
County of Lucas OH,
5.750%, 11/15/2031 (Pre-refunded to 11/15/2021)		1,110,000		1,163,169
County of Montgomery OH:
5.250%, 05/01/2029 (Pre-refunded to 11/12/2023)		1,085,000		1,231,117
5.250%, 05/01/2029 (Pre-refunded to 11/13/2023)		1,685,000		1,881,960
Lucas-Plaza Housing Development Corp.,
0.000%, 06/01/2024 (ETM) (Insured by FHA)		1,385,000		1,362,106
Ohio Housing Finance Agency:
3.950%, 09/01/2043
(Callable 09/01/2027) (Insured by GNMA)		370,000		406,319
3.500%, 09/01/2046
(Callable 09/01/2025) (Insured by GNMA)		875,000		937,090
3.750%, 09/01/2050
(Callable 03/01/2029) (Insured by GNMA)		2,410,000		2,723,613
State of Ohio:
5.000%, 06/15/2021		6,740,000		6,887,000
5.000%, 09/01/2033 (Callable 03/01/2024)		575,000		654,896
5.000%, 04/01/2039 (Callable 04/01/2030)		2,000,000		2,624,720
University of Akron,
5.000%, 01/01/2033 (Callable 07/01/2026)		335,000		394,931
Total Ohio
(Cost $21,779,526)				22,313,139		1.5	%
Oregon
Clackamas County School District No. 12,
5.000%, 06/15/2037
(Callable 06/15/2027) (Insured by SCH BD GTY)		825,000		1,023,256
Clackamas County Service District No. 1,
2.125%, 12/01/2030 (Callable 12/01/2026)		1,000,000		1,062,040

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
County of Multnomah OR,
4.000%, 06/01/2030 (Callable 06/01/2022)	$	1,565,000	$	1,638,039
Salem-Keizer School District No. 24J,
0.000%, 06/15/2033
(Callable 06/15/2030) (Insured by SCH BD GTY)(5)		2,535,000		3,331,953
State of Oregon:
4.000%, 12/01/2045 (Callable 06/01/2025)		2,210,000		2,371,816
4.000%, 12/01/2048 (Callable 12/01/2026)		2,480,000		2,695,562
State of Oregon Housing &
Community Services Department:
4.000%, 01/01/2047 (Callable 07/01/2025)		1,120,000		1,200,685
3.750%, 07/01/2048 (Callable 01/01/2027)		1,560,000		1,683,411
3.500%, 01/01/2051 (Callable 01/01/2029)		4,185,000		4,663,011
Washington County School District No. 1,
5.000%, 06/15/2035
(Callable 06/15/2027) (Insured by SCH BD GTY)		600,000		749,994
Total Oregon
(Cost $19,776,650)				20,419,767		1.4	%
Pennsylvania
Centennial School District Bucks County,
4.000%, 12/15/2029
(Callable 12/15/2024) (Insured by ST AID)		265,000		299,196
Commonwealth Financing Authority,
4.000%, 06/01/2039
(Callable 06/01/2028) (Insured by AGM)		1,500,000		1,728,900
Delaware Valley Regional Finance Authority:
0.600%, 09/01/2048
(SIFMA Municipal Swap Index + 0.530%)
(Callable 09/01/2022)
(Mandatory Tender Date 09/01/2023)(2)		2,000,000		1,997,480
0.190%, 11/01/2055 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		4,000,000		4,000,000
Mckeesport Area School District,
0.000%, 10/01/2025 (ETM)		110,000		107,427
Pennsylvania Higher Educational Facilities Authority:
5.000%, 04/01/2035 (Pre-refunded to 04/01/2022)		200,000		212,002
5.750%, 08/15/2041 (Pre-refunded to 08/15/2021)		535,000		553,393
Pennsylvania Housing Finance Agency:
2.450%, 07/01/2022
(Mandatory Tender Date 07/01/2021)(1)		5,325,000		5,380,114
3.500%, 10/01/2046 (Callable 10/01/2025)		815,000		858,871
3.500%, 04/01/2051 (Callable 10/01/2029)		4,200,000		4,578,378

The accompanying notes are an integral part of these financial statements.

Page 355

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Pittsburgh Water & Sewer Authority:
0.000%, 09/01/2026 (ETM)	$	720,000	$	698,371
0.000%, 09/01/2027 (ETM)		1,075,000		1,030,925
0.000%, 09/01/2028 (ETM)		360,000		338,656
Total Pennsylvania
(Cost $21,223,770)				21,783,713		1.5	%
Puerto Rico
Puerto Rico Highways & Transportation Authority,
5.250%, 07/01/2022 (ETM) (Insured by AGM)		1,150,000		1,234,502
Puerto Rico Public Finance Corp.:
5.125%, 06/01/2024 (Insured by AMBAC)		5,225,000		5,623,197
6.000%, 08/01/2026 (ETM)		4,340,000		5,608,626
6.000%, 08/01/2026 (ETM) (Insured by AGC)		1,055,000		1,363,387
6.000%, 08/01/2026 (ETM) (Insured by AGC)		1,155,000		1,492,618
6.000%, 08/01/2026 (ETM) (Insured by AGC)		1,785,000		2,306,773
6.000%, 08/01/2026 (ETM) (Insured by AGC)		1,310,000		1,692,926
5.500%, 08/01/2027 (ETM) (Insured by AMBAC)		6,500,000		8,534,760
Total Puerto Rico
(Cost $25,952,301)				27,856,789		1.9	%
Rhode Island
Rhode Island Housing & Mortgage Finance Corp.,
3.500%, 10/01/2050 (Callable 10/01/2029)		1,390,000		1,549,433
State of Rhode Island,
5.000%, 08/01/2024		5,000,000		5,837,100
Total Rhode Island
(Cost $6,931,065)				7,386,533		0.5	%
South Carolina
Charleston Educational Excellence Finance Corp.,
5.000%, 12/01/2026 (Callable 12/01/2023)		4,625,000		5,223,151
City of Columbia SC,
5.000%, 02/01/2029 (Callable 02/01/2028)		25,000		32,546
Patriots Energy Group Financing Agency,
0.956%, 10/01/2048 (1 Month LIBOR USD + 0.860%)
(Callable 11/01/2023)
(Mandatory Tender Date 02/01/2024)(2)		2,895,000		2,906,464
Piedmont Municipal Power Agency,
5.375%, 01/01/2025 (ETM) (Insured by NATL)		5,530,000		6,491,335
South Carolina Jobs-Economic Development Authority,
0.230%, 05/01/2048 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		1,600,000		1,600,000
Total South Carolina
(Cost $15,628,281)				16,253,496		1.1	%

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
South Dakota
Harrisburg School District No. 41-2,
2.375%, 08/01/2026 (Insured by ST AID)	$	415,000	$	441,850
Sioux Falls School District No. 49-5,
1.375%, 08/01/2021 (Insured by ST AID)		50,000		50,194
South Dakota Housing Development Authority:
4.100%, 11/01/2028 (Callable 05/01/2023)		255,000		268,487
3.375%, 05/01/2033 (Callable 05/01/2022)		340,000		347,810
Total South Dakota
(Cost $1,058,409)				1,108,341		0.1	%
Tennessee
City of Murfreesboro TN:
3.000%, 06/01/2030 (Callable 06/01/2023)		3,400,000		3,568,776
3.000%, 06/01/2031 (Callable 06/01/2023)		3,005,000		3,145,905
Memphis Health Educational & Housing Facility Board,
0.625%, 06/01/2023
(Mandatory Tender Date 06/01/2022)(1)		2,500,000		2,508,175
Nashville & Davidson County Metropolitan Government:
0.000%, 06/01/2021 (ETM)		2,380,000		2,377,406
4.875%, 11/01/2028 (ETM) (Insured by NATL)		1,840,000		2,165,091
Tennessee Housing Development Agency:
3.850%, 01/01/2035 (Callable 01/01/2025)		410,000		439,311
3.900%, 07/01/2042 (Callable 07/01/2027)		735,000		812,109
4.000%, 01/01/2043 (Callable 07/01/2027)		1,015,000		1,112,826
3.650%, 07/01/2047 (Callable 01/01/2027)		1,125,000		1,203,052
4.050%, 01/01/2049 (Callable 01/01/2028)		2,935,000		3,257,586
4.250%, 01/01/2050 (Callable 07/01/2028)		1,585,000		1,769,002
Total Tennessee
(Cost $21,650,843)				22,359,239		1.5	%
Texas
Amarillo Independent School District,
5.000%, 02/01/2026
(Callable 02/01/2024) (PSF Guaranteed)		1,370,000		1,565,814
Anna Independent School District,
5.000%, 08/15/2035
(Callable 08/15/2026) (PSF Guaranteed)		910,000		1,110,491
Arlington Higher Education Finance Corp.:
4.000%, 08/15/2024 (PSF Guaranteed)		1,025,000		1,142,434
5.000%, 08/15/2024 (PSF Guaranteed)		1,010,000		1,167,479
5.000%, 08/15/2024 (PSF Guaranteed)		100,000		115,592
5.000%, 08/15/2026 (PSF Guaranteed)		500,000		623,475
4.000%, 08/15/2027
(Callable 08/15/2026) (PSF Guaranteed)		875,000		1,025,841

The accompanying notes are an integral part of these financial statements.

Page 357

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Arlington Higher Education Finance Corp.: (cont.)
5.000%, 02/15/2028
(Callable 02/15/2025) (PSF Guaranteed)	$	1,905,000	$	2,226,050
4.000%, 08/15/2028
(Callable 08/15/2026) (PSF Guaranteed)		850,000		989,434
5.000%, 08/15/2028
(Callable 08/15/2024) (PSF Guaranteed)		555,000		632,767
4.000%, 08/15/2033
(Callable 08/15/2026) (PSF Guaranteed)		450,000		505,481
5.000%, 08/15/2033
(Callable 08/15/2024) (PSF Guaranteed)		1,460,000		1,640,237
4.000%, 08/15/2034
(Callable 08/15/2026) (PSF Guaranteed)		195,000		222,284
4.000%, 08/15/2035
(Callable 08/15/2026) (PSF Guaranteed)		455,000		517,726
4.000%, 12/01/2035
(Callable 06/01/2027) (PSF Guaranteed)		450,000		530,586
Austin Community College District,
5.000%, 08/01/2035 (Callable 08/01/2025)		1,175,000		1,403,103
Austin Community College District Public Facility Corp.,
5.000%, 08/01/2033 (Callable 08/01/2025)		750,000		893,730
Balmorhea Independent School District,
4.000%, 02/15/2042
(Callable 02/15/2024) (PSF Guaranteed)		350,000		378,703
Barbers Hill Independent School District,
4.000%, 02/15/2037
(Callable 08/15/2026) (PSF Guaranteed)		860,000		1,000,558
Blum Independent School District:
4.000%, 08/15/2032
(Callable 08/15/2026) (PSF Guaranteed)		165,000		190,364
4.000%, 08/15/2033
(Callable 08/15/2026) (PSF Guaranteed)		210,000		241,489
Burleson Independent School District,
5.000%, 08/01/2025 (PSF Guaranteed)		1,260,000		1,523,579
City of Dallas TX,
5.000%, 02/15/2029		1,875,000		2,488,050
City of El Paso TX,
5.000%, 08/15/2022		170,000		183,177
City of Fort Worth TX,
4.000%, 02/15/2035 (Callable 02/15/2028)		2,530,000		3,013,028
City of Houston TX:
5.500%, 12/01/2024 (ETM) (Insured by NATL)		1,835,000		2,107,461
0.000%, 12/01/2026 (ETM) (Insured by AGM)		465,000		448,571
5.500%, 12/01/2029 (ETM) (Insured by NATL)		16,050,000		20,855,049
5.750%, 12/01/2032 (ETM) (Insured by AGM)		29,965,000		45,816,485

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of San Antonio TX,
5.000%, 02/01/2025 (ETM)	$	175,000	$	207,953
Clifton Higher Education Finance Corp.:
5.000%, 08/15/2029
(Callable 08/15/2024) (PSF Guaranteed)		215,000		249,527
4.000%, 08/15/2031
(Callable 08/15/2026) (PSF Guaranteed)		120,000		138,832
4.000%, 08/15/2044
(Callable 08/15/2029) (PSF Guaranteed)		525,000		617,468
Conroe Independent School District,
5.000%, 02/15/2023
(Pre-refunded to 02/15/2021) (PSF Guaranteed)		1,745,000		1,754,423
County of Bexar TX:
4.000%, 06/15/2030 (Callable 06/15/2026)		150,000		176,668
4.000%, 06/15/2033 (Callable 06/15/2025)		3,795,000		4,358,558
5.000%, 06/15/2036 (Callable 06/15/2026)		2,120,000		2,588,478
County of Harris TX:
5.000%, 10/01/2026 (Callable 10/01/2025)		4,170,000		5,077,559
5.000%, 08/15/2030 (Callable 08/15/2022)		700,000		752,395
County of Montgomery TX,
5.000%, 03/01/2027 (Pre-refunded to 03/01/2022)		665,000		702,220
County of Williamson TX:
4.000%, 02/15/2034 (Callable 08/15/2026)		2,270,000		2,659,964
4.000%, 02/15/2039 (Callable 02/15/2029)		1,320,000		1,602,229
Crowley Independent School District,
5.000%, 08/01/2036
(Pre-refunded to 08/01/2025) (PSF Guaranteed)		2,000,000		2,426,540
Dallas Independent School District:
5.000%, 02/15/2036
(Pre-refunded to 02/15/2022) (PSF Guaranteed)		390,000		410,768
5.000%, 02/15/2036
(Pre-refunded to 02/15/2022) (PSF Guaranteed)(1)		700,000		737,275
5.000%, 02/15/2036
(Mandatory Tender Date 02/15/2022) (PSF Guaranteed)(1)		705,000		741,723
Decatur Hospital Authority,
5.750%, 09/01/2029 (ETM)		460,000		569,682
DeSoto Independent School District:
5.000%, 08/15/2032
(Callable 08/15/2025) (Insured by BAM)		1,080,000		1,281,107
5.000%, 08/15/2032
(Callable 08/15/2024) (PSF Guaranteed)		1,825,000		2,103,896
Eagle Mountain & Saginaw Independent School District,
4.000%, 08/15/2045
(Callable 08/15/2025) (PSF Guaranteed)		675,000		769,594

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Ennis Independent School District,
5.000%, 08/15/2025 (PSF Guaranteed)	$	1,145,000	$	1,390,019
Forney Independent School District,
5.000%, 08/15/2034
(Callable 08/15/2025) (PSF Guaranteed)		525,000		626,960
Fort Bend Independent School District,
5.000%, 08/15/2024 (PSF Guaranteed)		1,655,000		1,938,319
Godley Independent School District,
5.000%, 02/15/2023 (PSF Guaranteed)		1,445,000		1,586,509
Harlingen Consolidated Independent School District:
5.000%, 08/15/2024 (PSF Guaranteed)		2,810,000		3,282,193
5.000%, 08/15/2025 (PSF Guaranteed)		1,445,000		1,753,464
Harris County Cultural Education Facilities Finance Corp.,
7.000%, 01/01/2048 (Pre-refunded to 01/01/2023)		3,800,000		4,290,656
Harris County Health Facilities Development Corp.:
5.750%, 07/01/2027 (ETM)		4,545,000		5,535,583
6.250%, 07/01/2027 (ETM)		7,295,000		9,065,788
Harris County Toll Road Authority,
5.000%, 08/15/2028 (Callable 02/15/2028)		770,000		1,003,433
Hays Consolidated Independent School District,
4.000%, 02/15/2033
(Callable 02/15/2027) (PSF Guaranteed)		880,000		1,036,086
Honda Auto Receivables Owner Trust,
5.000%, 02/15/2026
(Callable 02/15/2024) (PSF Guaranteed)		1,030,000		1,158,534
Houston Higher Education Finance Corp.,
5.000%, 02/15/2034
(Callable 02/15/2024) (PSF Guaranteed)		1,795,000		1,985,162
Humble Independent School District:
5.000%, 02/15/2021 (PSF Guaranteed)		1,500,000		1,508,115
5.000%, 02/15/2036
(Callable 02/15/2027) (PSF Guaranteed)		1,000,000		1,235,420
Irving Independent School District,
5.000%, 02/15/2025
(Callable 08/15/2024) (PSF Guaranteed)		1,250,000		1,457,587
Kenedy Independent School District:
4.000%, 08/15/2031
(Pre-refunded to 08/15/2023) (PSF Guaranteed)		100,000		109,809
4.000%, 08/15/2035
(Pre-refunded to 08/15/2021) (PSF Guaranteed)		100,000		102,338
4.000%, 08/15/2036
(Pre-refunded to 08/15/2021) (PSF Guaranteed)		150,000		153,507
4.000%, 08/15/2037
(Pre-refunded to 08/15/2021) (PSF Guaranteed)		100,000		102,338
4.000%, 08/15/2038
(Pre-refunded to 08/15/2021) (PSF Guaranteed)		100,000		102,338

The accompanying notes are an integral part of these financial statements.

Page 360

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Killeen Independent School District,
4.000%, 02/15/2024
(Callable 02/15/2021) (PSF Guaranteed)	$	1,145,000	$	1,149,969
Kirbyville Consolidated Independent School District,
4.000%, 02/15/2029
(Pre-refunded to 02/15/2024) (PSF Guaranteed)		160,000		177,790
Klein Independent School District,
4.000%, 08/01/2031
(Callable 08/01/2025) (PSF Guaranteed)		1,000,000		1,157,010
La Joya Independent School District,
4.000%, 02/15/2035
(Callable 02/15/2027) (Insured by AGM)		910,000		1,035,425
La Porte Independent School District,
5.000%, 02/15/2025 (PSF Guaranteed)		1,080,000		1,286,150
Leander Independent School District:
0.000%, 08/15/2035
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		250,000		142,473
0.000%, 08/15/2037
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		700,000		371,553
0.000%, 08/15/2040
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		635,000		290,817
0.000%, 08/15/2040
(Callable 08/15/2024) (PSF Guaranteed)		20,000		8,859
0.000%, 08/15/2041
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		8,915,000		3,593,815
0.000%, 08/15/2041
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		135,000		58,513
0.000%, 08/15/2042
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		1,500,000		571,635
0.000%, 08/15/2045
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		2,000,000		639,780
0.000%, 08/15/2048
(Pre-refunded to 08/15/2024) (PSF Guaranteed)		750,000		199,058
Lower Colorado River Authority:
4.750%, 01/01/2028 (ETM) (Insured by AGM)		1,655,000		1,897,292
5.000%, 05/15/2040 (Callable 05/15/2025)		1,970,000		2,273,813
Lubbock Housing Finance Corp.,
8.000%, 10/01/2021 (ETM)		1,980,000		2,089,494
Luling Independent School District:
4.000%, 02/15/2028 (PSF Guaranteed)		190,000		229,855
4.000%, 02/15/2029
(Callable 02/15/2028) (PSF Guaranteed)		90,000		107,843
McKinney Independent School District,
4.000%, 02/15/2034
(Callable 02/15/2026) (PSF Guaranteed)		1,325,000		1,518,848

The accompanying notes are an integral part of these financial statements.

Page 361

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Melissa Independent School District,
5.000%, 08/01/2036
(Callable 08/01/2026) (PSF Guaranteed)	$	1,020,000	$	1,244,114
Mesquite Independent School District:
5.000%, 08/15/2024 (PSF Guaranteed)		1,425,000		1,667,250
5.000%, 08/15/2025 (PSF Guaranteed)		2,615,000		3,185,305
5.000%, 08/15/2025 (PSF Guaranteed)		1,500,000		1,827,135
Millsap Independent School District,
4.000%, 02/15/2026
(Callable 02/15/2024) (PSF Guaranteed)		335,000		372,004
Montgomery County Health Facilities Development Corp.,
0.000%, 07/15/2023 (ETM)		200,000		197,990
Moulton Independent School District:
4.000%, 08/15/2031
(Callable 08/15/2027) (PSF Guaranteed)		235,000		278,919
4.000%, 08/15/2032
(Callable 08/15/2027) (PSF Guaranteed)		200,000		236,294
4.000%, 08/15/2034
(Callable 08/15/2027) (PSF Guaranteed)		225,000		264,170
4.000%, 08/15/2035
(Callable 08/15/2027) (PSF Guaranteed)		545,000		638,528
4.000%, 08/15/2036
(Callable 08/15/2027) (PSF Guaranteed)		285,000		333,008
Navasota Independent School District,
5.000%, 02/15/2048
(Callable 02/15/2025) (PSF Guaranteed)		6,785,000		7,883,627
New Caney Independent School District:
5.000%, 02/15/2023 (PSF Guaranteed)		1,000,000		1,099,270
5.000%, 02/15/2024 (PSF Guaranteed)		1,030,000		1,179,402
5.000%, 02/15/2039
(Callable 08/15/2027) (PSF Guaranteed)		500,000		620,660
New Hope Cultural Education Facilities Finance Corp.,
5.000%, 04/01/2025 (ETM)		715,000		848,126
Newark Higher Education Finance Corp.,
4.000%, 08/15/2022 (PSF Guaranteed)		215,000		227,201
North East Independent School District,
5.000%, 02/01/2024 (PSF Guaranteed)		2,930,000		3,351,686
North Texas Tollway Authority:
0.000%, 09/01/2037 (Pre-refunded to 09/01/2031)		2,940,000		1,655,573
0.000%, 09/01/2043 (Pre-refunded to 09/01/2031)		7,590,000		2,724,051
0.000%, 09/01/2043 (Pre-refunded to 09/01/2031)(5)		3,025,000		4,215,428
0.000%, 09/01/2045 (Pre-refunded to 09/01/2031)(5)		1,390,000		2,094,800
Northside Independent School District,
5.000%, 08/15/2025 (PSF Guaranteed)		1,000,000		1,213,990

The accompanying notes are an integral part of these financial statements.

Page 362

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Pasadena Independent School District,
1.500%, 02/15/2044
(Mandatory Tender Date 08/15/2024)
(PSF Guaranteed)(1)	$	1,360,000	$	1,413,761
Pflugerville Independent School District:
5.000%, 02/15/2025
(Callable 02/15/2024) (PSF Guaranteed)		1,020,000		1,168,288
5.000%, 02/15/2037
(Callable 02/15/2026) (PSF Guaranteed)		100,000		120,644
Princeton Independent School District,
5.000%, 02/15/2032
(Callable 02/15/2025) (PSF Guaranteed)		560,000		657,602
Prosper Independent School District,
5.000%, 02/15/2031
(Callable 02/15/2028) (PSF Guaranteed)		1,020,000		1,319,421
Red River Education Finance Corp.,
5.000%, 03/15/2043 (Pre-refunded to 03/15/2023)		4,500,000		4,975,875
Rockwall Independent School District,
5.000%, 02/15/2038
(Callable 02/01/2021) (PSF Guaranteed)		745,000		747,384
San Angelo Independent School District,
5.000%, 02/15/2029
(Pre-refunded to 02/15/2024) (PSF Guaranteed)		1,500,000		1,723,185
San Antonio Housing Trust Finance Corp.,
1.375%, 09/01/2022
(Mandatory Tender Date 09/01/2021)(1)		1,690,000		1,701,881
San Antonio Public Facilities Corp.,
4.000%, 09/15/2034 (Callable 09/15/2022)		1,750,000		1,822,013
San Jacinto College District,
5.000%, 02/15/2026 (Pre-refunded to 02/15/2021)		700,000		703,696
Sherman Independent School District,
5.000%, 02/15/2026
(Callable 02/15/2024) (PSF Guaranteed)		1,775,000		2,027,707
Smithville Independent School District:
4.000%, 08/15/2031
(Callable 08/15/2028) (PSF Guaranteed)		185,000		225,051
4.000%, 08/15/2032
(Callable 08/15/2028) (PSF Guaranteed)		100,000		121,019
4.000%, 08/15/2033
(Callable 08/15/2028) (PSF Guaranteed)		110,000		132,549
Socorro Independent School District,
4.000%, 08/15/2033
(Callable 02/15/2027) (PSF Guaranteed)		900,000		1,066,329
State of Texas:
5.000%, 04/01/2038 (Callable 04/01/2026)		2,000,000		2,439,780
4.000%, 04/01/2046 (Callable 04/01/2026)		4,110,000		4,655,479

The accompanying notes are an integral part of these financial statements.

Page 363

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Tarrant County Health Facilities Development Corp.,
6.000%, 09/01/2024 (ETM)	$	3,850,000	$	4,301,682
Terrell Independent School District,
4.000%, 08/01/2037
(Callable 08/01/2026) (PSF Guaranteed)		510,000		582,808
Texas Department of Housing & Community Affairs:
3.350%, 09/01/2033
(Callable 09/01/2027) (Insured by GNMA)		880,000		942,471
2.150%, 09/01/2035 (Callable 03/01/2029)		1,350,000		1,396,494
4.000%, 03/01/2050
(Callable 09/01/2028) (Insured by GNMA)		1,055,000		1,206,002
Texas State Affordable Housing Corp.,
4.250%, 03/01/2049
(Callable 03/01/2029) (Insured by GNMA)		495,000		551,880
Texas Water Development Board:
4.000%, 10/15/2033 (Callable 10/15/2027)		600,000		725,760
5.000%, 10/15/2033 (Callable 10/15/2025)		1,250,000		1,507,075
4.000%, 10/15/2034 (Callable 04/15/2028)		2,000,000		2,435,540
4.000%, 10/15/2034 (Callable 10/15/2028)		975,000		1,201,405
4.000%, 04/15/2038 (Callable 10/15/2027)		1,900,000		2,276,181
Town of Flower Mound TX,
5.000%, 03/01/2033 (Callable 03/01/2024)		250,000		285,500
Travis County Health Facilities Development Corp.,
7.125%, 01/01/2046 (Pre-refunded to 01/01/2021)		15,000		15,000
Tyler Health Facilities Development Corp.,
5.500%, 07/01/2027 (Pre-refunded to 07/01/2021)		600,000		615,318
United Independent School District:
5.000%, 08/15/2033
(Callable 08/15/2028) (PSF Guaranteed)		835,000		1,082,285
5.000%, 08/15/2038
(Callable 08/15/2027) (PSF Guaranteed)		225,000		285,467
Webb Consolidated Independent School District,
4.000%, 02/15/2033
(Callable 02/15/2025) (PSF Guaranteed)		250,000		279,590
Wylie Independent School District,
6.750%, 08/15/2023 (PSF Guaranteed)		1,010,000		1,180,124
Ysleta Independent School District:
5.000%, 08/15/2023
(Pre-refunded to 08/15/2021) (PSF Guaranteed)		1,020,000		1,050,396
5.000%, 08/15/2025
(Callable 08/15/2024) (PSF Guaranteed)		1,545,000		1,800,373
Total Texas
(Cost $253,434,341)				270,811,593		18.0	%

The accompanying notes are an integral part of these financial statements.

Page 364

Baird Quality Intermediate Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Utah
Granite School District Board of Education:
5.000%, 06/01/2022 (Pre-refunded to 06/01/2021)
(Insured by SCH BD GTY)	$	3,900,000	$	3,976,635
5.000%, 06/01/2023 (Pre-refunded to 06/01/2021)
(Insured by SCH BD GTY)		1,750,000		1,784,387
Timpanogos Special Service District,
4.000%, 06/01/2028 (Callable 06/01/2024)		425,000		470,110
University of Utah,
5.000%, 08/01/2044 (Callable 08/01/2028)		2,000,000		2,529,920
Utah Charter School Finance Authority:
5.000%, 04/15/2024 (Insured by UT CSCE)		235,000		266,596
5.000%, 04/15/2037
(Callable 04/15/2026) (Insured by UT CSCE)		500,000		579,365
Utah Housing Corp.,
4.000%, 01/01/2045
(Callable 01/01/2026) (Insured by FHA)		4,015,000		4,330,017
Total Utah
(Cost $13,617,759)				13,937,030		0.9	%
Vermont
City of Burlington VT:
5.500%, 07/01/2029 (Pre-refunded to 07/01/2021)		265,000		271,699
5.625%, 07/01/2030 (Pre-refunded to 07/01/2021)		315,000		323,155
5.750%, 07/01/2031 (Pre-refunded to 07/01/2021)		460,000		472,190
Vermont Housing Finance Agency:
3.600%, 11/01/2036 (Callable 11/01/2025)		1,510,000		1,627,750
4.000%, 05/01/2048
(Callable 11/01/2026) (Insured by GNMA)		855,000		918,330
4.000%, 11/01/2048 (Callable 05/01/2027)		555,000		604,678
Total Vermont
(Cost $4,080,599)				4,217,802		0.3	%
Virginia
County of Fairfax VA,
5.000%, 04/01/2042 (Callable 04/01/2027)		585,000		724,218
Danville Industrial Development Authority,
5.250%, 10/01/2028 (ETM) (Insured by AMBAC)		1,095,000		1,231,087
Hampton Redevelopment & Housing Authority,
1.460%, 12/01/2022
(Mandatory Tender Date 12/01/2021)(1)		2,950,000		2,978,762
Virginia Housing Development Authority:
3.700%, 03/01/2023 (Callable 03/01/2021)		75,000		75,366
3.450%, 04/01/2038 (Callable 10/01/2022)		7,350,000		7,581,819
Total Virginia
(Cost $12,409,064)				12,591,252		0.8	%

The accompanying notes are an integral part of these financial statements.

Page 365

Baird Quality Intermediate Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Washington
Central Puget Sound Regional Transit Authority,
5.000%, 11/01/2032 (Callable 11/01/2025)	$	2,725,000	$	3,286,132
County of King WA,
5.000%, 07/01/2034 (Callable 01/01/2025)		705,000		826,168
Energy Northwest,
5.000%, 07/01/2034 (Callable 07/01/2027)		1,090,000		1,367,939
King County Housing Authority:
3.250%, 05/01/2033 (Callable 05/01/2028)		1,500,000		1,688,985
4.000%, 11/01/2034 (Callable 11/01/2029)		1,520,000		1,845,128
4.000%, 11/01/2036 (Callable 11/01/2029)		2,740,000		3,304,139
Pierce County School District No. 3,
5.000%, 12/01/2033
(Callable 06/01/2027) (Insured by SCH BD GTY)		2,600,000		3,269,162
Port of Seattle WA:
5.000%, 01/01/2037 (Callable 01/01/2027)		1,665,000		2,061,353
5.000%, 01/01/2038 (Callable 01/01/2027)		1,000,000		1,235,660
State of Washington:
5.000%, 07/01/2032 (Callable 01/01/2025)		1,005,000		1,181,649
5.000%, 07/01/2032 (Callable 01/01/2025)		6,005,000		7,060,499
5.000%, 08/01/2034 (Callable 08/01/2023)		2,755,000		3,071,384
5.000%, 02/01/2035 (Callable 02/01/2025)		720,000		845,618
5.000%, 08/01/2038 (Callable 08/01/2026)		1,225,000		1,499,376
5.000%, 07/01/2040 (Callable 07/01/2028)		500,000		632,670
Washington Health Care Facilities Authority:
5.000%, 09/01/2030		300,000		401,892
5.000%, 09/01/2031 (Callable 09/01/2030)		175,000		233,060
6.125%, 11/15/2031 (Pre-refunded to 05/15/2021)		620,000		633,504
5.000%, 09/01/2032 (Callable 09/01/2030)		185,000		244,836
5.000%, 09/01/2033 (Callable 09/01/2030)		190,000		250,194
6.250%, 11/15/2041 (Pre-refunded to 05/15/2021)		4,875,000		4,983,371
Washington State Housing Finance Commission:
2.550%, 07/01/2022
(Mandatory Tender Date 07/01/2021)(1)		6,250,000		6,317,750
5.000%, 01/01/2023 (ETM)		385,000		402,036
0.620%, 12/01/2048
(SIFMA Municipal Swap Index + 0.550%)
(Callable 04/01/2023)
(Mandatory Tender Date 10/01/2023)(2)		4,465,000		4,473,751
4.000%, 06/01/2049 (Callable 06/01/2028)		585,000		647,958
4.000%, 06/01/2050
(Callable 06/01/2029) (Insured by GNMA)		1,820,000		2,065,464
Total Washington
(Cost $51,496,793)				53,829,678		3.6	%

The accompanying notes are an integral part of these financial statements.

Page 366

Baird Quality Intermediate Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
West Virginia
West Virginia Economic Development Authority,
5.000%, 07/01/2033 (Callable 07/01/2027)	$	875,000	$	1,089,401
West Virginia Parkways Authority,
5.000%, 06/01/2043 (Callable 06/01/2028)		2,000,000		2,503,120
Total West Virginia
(Cost $3,549,967)				3,592,521		0.2	%
Wisconsin
Baraboo School District,
4.000%, 04/01/2028
(Callable 04/01/2026) (Insured by BAM)		550,000		639,331
City of Milwaukee WI,
3.000%, 06/01/2033 (Callable 06/01/2026)		2,500,000		2,677,100
Mill City Mortgage Trust,
3.000%, 09/01/2023 (Pre-refunded to 09/01/2021)		310,000		315,602
Public Finance Authority,
5.000%, 03/01/2025		535,000		623,954
Southeast Wisconsin Professional Baseball Park District:
5.500%, 12/15/2026 (Insured by NATL)		1,090,000		1,336,329
0.000%, 12/15/2027 (ETM) (Insured by NATL)		300,000		286,185
0.000%, 12/15/2028 (ETM) (Insured by NATL)		300,000		280,452
0.000%, 12/15/2029 (ETM) (Insured by NATL)		345,000		313,591
State of Wisconsin:
5.000%, 05/01/2024 (Callable 05/01/2023)		2,150,000		2,387,919
4.000%, 05/01/2031 (Pre-refunded to 05/01/2022)		245,000		257,453
5.000%, 05/01/2033 (Callable 05/01/2025)		500,000		591,705
5.000%, 05/01/2034 (Callable 05/01/2025)		900,000		1,064,223
5.000%, 05/01/2037 (Callable 05/01/2028)		2,470,000		3,174,049
State of Wisconsin Clean Water
Fund Leveraged Loan Portfolio:
5.000%, 06/01/2028 (Pre-refunded to 06/01/2024)		5,430,000		6,304,067
5.000%, 06/01/2030 (Pre-refunded to 06/01/2024)		10,515,000		12,207,599
5.000%, 06/01/2031 (Pre-refunded to 06/01/2024)		7,975,000		9,258,736
University of Wisconsin Hospitals & Clinics,
5.000%, 04/01/2038 (Pre-refunded to 04/01/2023)		2,655,000		2,935,103
Village of Mount Pleasant WI:
5.000%, 04/01/2036 (Callable 04/01/2028)		275,000		341,798
4.000%, 04/01/2037 (Callable 04/01/2028)		2,400,000		2,771,544
5.000%, 04/01/2048 (Callable 04/01/2028)		1,500,000		1,808,265
Wisconsin Center District:
4.000%, 12/15/2029 (Callable 06/15/2026)		1,480,000		1,687,777
5.000%, 12/15/2030 (Callable 06/15/2026)		775,000		947,647
0.000%, 12/15/2034 (Callable 12/15/2030)
(Insured by AGM)		1,205,000		868,600
0.000%, 12/15/2034 (Callable 12/15/2030)		1,810,000		1,303,689

The accompanying notes are an integral part of these financial statements.

Page 367

Baird Quality Intermediate Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Wisconsin Health & Educational Facilities Authority:
5.000%, 02/15/2028 (Pre-refunded to 08/15/2025)	$	20,000	$	24,199
4.000%, 02/15/2033 (Pre-refunded to 08/15/2025)		100,000		116,431
5.000%, 11/15/2036 (Callable 05/15/2026)		205,000		248,396
4.000%, 02/15/2038 (Pre-refunded to 08/15/2025)		325,000		378,401
5.000%, 07/01/2042 (Callable 07/01/2027)		2,000,000		2,391,840
4.000%, 11/15/2043 (Callable 11/15/2028)		1,945,000		2,273,744
Wisconsin Housing & Economic Development Authority:
3.500%, 09/01/2046
(Callable 09/01/2025) (Insured by FNMA)		1,090,000		1,162,757
4.000%, 03/01/2048
(Callable 03/01/2027) (Insured by FNMA)		1,380,000		1,489,669
4.250%, 03/01/2049 (Callable 09/01/2028)		2,030,000		2,274,615
Total Wisconsin
(Cost $61,465,310)				64,742,770		4.3	%
Wyoming
Wyoming Community Development Authority:
4.000%, 12/01/2043 (Callable 06/01/2027)		530,000		563,374
4.000%, 12/01/2048 (Callable 06/01/2028)		2,825,000		3,121,456
Total Wyoming
(Cost $3,534,792)				3,684,830		0.2	%
Total Long-Term Investments
(Cost $1,405,915,885)				1,483,855,342		98.8	%
Short-Term Investment
	Shares
Money Market Mutual Fund
Federated Hermes Institutional Tax-Free
Cash Trust, Premier Shares, 0.01%(4)		1,170,671		1,170,671
Total Short-Term Investment
(Cost $1,170,671)				1,170,671		0.1	%
Total Investments
(Cost $1,407,086,556)				1,485,026,013		98.9	%
Other Assets in Excess of Liabilities				16,596,667		1.1	%
TOTAL NET ASSETS			$	1,501,622,680		100.0	%

Notes to Schedule of Investments

AGC – Assured Guaranty Corp.

AGM – Assured Guaranty Municipal

AMBAC – Ambac Assurance Corp.

BAM – Build America Mutual Assurance Co.

BHAC – Berkshire Hathaway Assurance Corp.

FHA – Federal Housing Administration

The accompanying notes are an integral part of these financial statements.

Page 368

Baird Quality Intermediate Municipal Bond Fund

Schedule of Investments, December 31, 2020

Notes to Schedule of Investments (cont.)

FNMA – Federal National Mortgage Association

GNMA – Government National Mortgage Association

NATL – National Public Finance Guarantee Corp.

Q-SBLF – Qualified School Building Loan Fund

SCH BD GTY – School Board Guaranty

SD CRED PROG – State Credit Enhancement Program

ST AID – State Aid Intercept/Withholding

UT CSCE – Utah Charter School Credit Enhancement Program

ETM – Escrowed to Maturity

LIBOR – London Inter-bank Offered Rate

PSF – Permanent School Fund

SIFMA – Securities Industry and Financial Markets Association

(1)	Variable rate security. The rate reported is the rate in effect as of December 31, 2020.
(2)	Variable rate security based on a reference index and spread. The rate reported is the rate in effect as of December 31, 2020.
(3)	Security issued under Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program. Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers. At December 31, 2020, the value of these securities total $7,398,312, which represents 0.49% of total net assets.
(4)	Seven-day yield.
(5)	Step-up bond; the interest rate shown is the rate in effect as of December 31, 2020.

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The accompanying notes are an integral part of these financial statements.

Page 369

Baird Quality Intermediate Municipal Bond Fund

Summary of Fair Value Exposure at December 31, 2020 (cont.)

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Long-Term Investments
Municipal Bonds	$	—	$	1,483,855,342	$	—	$	1,483,855,342
Total Long-Term Investments		—		1,483,855,342		—		1,483,855,342
Short-Term Investment
Money Market Mutual Fund		1,170,671		—		—		1,170,671
Total Short-Term Investment		1,170,671		—		—		1,170,671
Total Investments	$	1,170,671	$	1,483,855,342	$	—	$	1,485,026,013

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 370

Baird Core Intermediate Municipal Bond Fund

December 31, 2020 (Unaudited)

The Baird Core Intermediate Municipal Bond Fund seeks a high level of current income that is exempt from federal income tax and is consistent with preservation of capital.

The coronavirus (COVID-19) challenges of 2020 were unexpected and unprecedented, but so was the speed and magnitude of the monetary and fiscal responses. The result was a year of significant volatility, yet a rewarding one for Fund investors who stayed the course. Over the full year, tax-exempt rates fell sharply across the curve with short rates falling 93bps and long yields declining 68bps, steepening the curve. As the year began, no one could have known the challenges that would soon be faced. Municipal funds were benefiting from a record streak of weekly inflows, state and local tax revenues were generally rising with the economy in its eleventh year of expansion and many municipalities were adding to an already healthy level of reserves. News broke in January of COVID-19 in the State of Washington; by the end of February, seven states had confirmed cases and it was spreading rapidly. Trading activity in the municipal market initially froze as the lockdowns began, then a torrent of selling was unleashed and a liquidity crisis quickly emerged. The selling and lack of dealer support for the market drove tax-exempt yields to record highs relative to comparable maturity Treasuries. Never had a U.S. economic shock been so swift, deep and broad, affecting so many municipalities. Investors were questioning the ability of municipalities to withstand this crisis and meet their obligations. On March 27th, President Trump signed the $2.2 trillion CARES Act which, along with other measures, offered substantial aid to nearly every sector of the municipal market. In addition, the establishment of the Municipal Liquidity Facility (MLF), which, for the first time ever, allowed the Fed to lend directly to states and other select municipalities, offered investors the psychological support they were looking for. As the policymakers acted, AAA-rated municipal yields peaked on March 20th and opportunistic investors began to emerge, looking to capitalize on the incredible undervaluation that had been created in the downdraft. From a credit perspective, the further in time we moved away from the initial economic shutdowns, the better the news became on tax revenues.

During 2020, the Fund’s Institutional Class Shares generated strong absolute and relative returns and outperformed its benchmark by 53 basis points net of fees.

The primary factors contributing to the Fund’s absolute and relative performance in 2020 include:

Contributors to Performance

• Security selection – the largest contributor for the year

• Curve – meaningful benefit from curve allocation and roll

• Credit sector – added to lower-quality issues as valuations became more attractive

Detractors from Performance

• Sector weighting – especially Housing and Education

• Allocation to below investment grade issues

Although the COVID-19 vaccinations have begun, we expect the economic impact of COVID-19 to linger well into 2021, particularly as it relates to travel and entertainment. Yet, with the massive fiscal stimulus that is already in the pipeline, and perhaps more coming now that the Democratic Party has full, albeit narrow, control of Washington, above-average economic growth is very likely this year.  This should boost state and local tax revenues helping municipalities recover from the pandemic-induced decline. With short-term rates anchored by the Fed, a steeper yield curve is likely which provides the opportunity for investors to capture the roll-down benefit as bonds age along a relatively steep curve. We expect the roll-down return to be an important component of total return this year, along with the yield advantage the Fund enjoys above that of its benchmark. Municipal credit spreads have room to narrow further, suggesting a modest credit overweight is appropriate. Strategic positioning across market sectors and the yield curve, a continued focus on credit to identify improving trends, plus the always-important security selection process will all be important to navigate through the current environment.

We expect the Fund will maintain a neutral duration posture relative to the benchmark with an allocation that seeks to optimize the roll-down benefit of a steep, upwardly-sloping municipal curve and its sector weightings will favor an overweight to revenue-backed issues over general obligation debt. We believe a modestly overweight credit posture is appropriate for the Fund to benefit from further economic recovery. We also believe our continued focus on selecting investments with strong fundamental tax and revenue support remains critical.

Page 371

Baird Core Intermediate Municipal Bond Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

Quality Distribution⁽¹⁾⁽²⁾

	Net Assets	$864,451,189
	SEC 30-Day
	Yield(4)
	Institutional Class	1.14%
	Investor Class	0.89%
	Average
	Effective
	Duration	4.18 years
	Average
	Effective
	Maturity	4.47 years
	Annualized
Sector Weightings(1)	Expense
	Ratio(5)
	Institutional Class	0.30%
	Investor Class	0.55%	(6)
	Portfolio
	Turnover Rate	35%
	Number of
	Holdings	1,184

(1)	Percentages shown are based on the Fund’s total investments.
(2)	The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO).  NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest).
(3)	Includes pre-refunded and escrowed-to-maturity (ETM) bonds.
(4)	SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2020.
(5)	Reflects expense ratios as stated in the Fund’s current prospectus.
(6)	Includes 0.25% 12b-1 fee.

Page 372

Baird Core Intermediate Municipal Bond Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on the Fund’s inception date (08/31/15), assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on the Fund’s inception date (08/31/15), assuming reinvestment of all distributions.

Page 373

Baird Core Intermediate Municipal Bond Fund

December 31, 2020 (Unaudited)

Total Returns

		Average Annual
	One	Three	Five	Since
For the Periods Ended December 31, 2020	Year	Years	Years	Inception(1)
Institutional Class Shares	5.26%	4.41%	3.92%	4.05%
Investor Class Shares	5.01%	4.13%	3.65%	3.78%
Bloomberg Barclays Municipal
Bond (1-15 Year) Index(2)	4.73%	4.23%	3.39%	3.53%

(1)

For the period from August 31, 2015 (inception date) through December 31, 2020.

(2)

The Bloomberg Barclays (1-15 Year) Municipal Bond Index is an unmanaged, market value weighted index of investment-grade, tax-exempt, and fixed-rate securities with maturities between 1 and 17 years.  Securities must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million.  The bonds must be fixed rate, have a dated-date after December 31, 1990, and must be at least one year from their maturity date.  This Index does not reflect any deduction for fees, expenses or taxes. A direct investment in an index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund may invest up to 10% of its net assets in non-investment grade debt securities (commonly referred to as “high yield” bonds). While these types of debt securities typically offer higher yields than investment grade securities, they also include greater risks including increased credit risk and the increased risk of default or bankruptcy.  The Fund may invest up to 25% of its total assets in municipal obligations issued by persons in the same state.  As a result, changes in economic, business or political conditions of a particular state may have a disproportionate impact on the Fund’s share price. Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com.  Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 374

Baird Core Intermediate Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments

	Principal				% of
	Amount		Value		Net Assets
Municipal Bonds
Alabama
Alabama Community College System:
3.500%, 11/01/2024 (Insured by BAM)	$	1,010,000	$	1,112,111
3.500%, 11/01/2025 (Insured by BAM)		1,100,000		1,235,498
5.000%, 10/01/2028
(Callable 10/01/2026) (Insured by AGM)		310,000		378,095
Alabama Public School and College Authority,
5.000%, 11/01/2029		2,000,000		2,733,180
Birmingham Airport Authority:
5.000%, 07/01/2027 (Insured by BAM)		500,000		624,820
4.000%, 07/01/2036
(Callable 07/01/2030) (Insured by BAM)		335,000		396,647
4.000%, 07/01/2037
(Callable 07/01/2030) (Insured by BAM)		500,000		590,045
Black Belt Energy Gas District:
4.000%, 07/01/2046 (Callable 03/01/2021)
(Mandatory Tender Date 06/01/2021)(1)		130,000		131,528
4.000%, 08/01/2047 (Callable 04/01/2022)
(Mandatory Tender Date 07/01/2022)(1)		1,005,000		1,055,461
City of Birmingham AL:
5.000%, 03/01/2037 (Pre-refunded to 03/01/2023)(7)		30,000		33,116
5.000%, 03/01/2040 (Callable 09/01/2025)(7)		185,000		217,728
5.000%, 03/01/2043 (Pre-refunded to 03/01/2023)(7)		1,935,000		2,136,008
5.000%, 03/01/2045 (Callable 09/01/2025)(7)		1,205,000		1,408,621
City of Pell City AL Special Care
Facilities Financing Authority,
5.000%, 12/01/2031 (Callable 12/01/2021)		1,000,000		1,034,450
City of Troy AL,
5.000%, 07/01/2031
(Callable 07/01/2025) (Insured by BAM)		555,000		643,822
County of Jefferson AL:
0.000%, 10/01/2025
(Callable 10/01/2023) (Insured by AGM)		1,000,000		911,560
5.000%, 09/15/2029 (Callable 03/15/2027)		570,000		710,345
0.000%, 10/01/2033
(Callable 10/01/2023) (Insured by AGM)		110,000		58,298
0.000%, 10/01/2034
(Callable 10/01/2023) (Insured by AGM)		480,000		235,344
Homewood Educational Building Authority:
4.000%, 12/01/2033 (Callable 12/01/2029)		785,000		904,767
4.000%, 12/01/2034 (Callable 12/01/2029)		255,000		293,398
Jasper Water Works & Sewer Board, Inc.,
5.000%, 06/01/2024 (Callable 06/01/2021)		200,000		203,930

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Lauderdale County Agriculture Center Authority,
4.000%, 07/01/2034 (Callable 07/01/2024)	$	1,235,000	$	1,311,150
Leeds Public Educational Building Authority,
4.000%, 04/01/2034
(Callable 10/01/2025) (Insured by AGM)		450,000		508,518
Madison Water & Wastewater Board:
4.000%, 12/01/2037 (Callable 12/01/2029)		530,000		642,996
4.000%, 12/01/2039 (Callable 12/01/2029)		240,000		288,658
Mizuho Floater/Residual Trust,
0.470%, 12/01/2048 (Callable 02/01/2021)
(Optional Put Date 02/04/2021)(1)(3)		5,700,000		5,700,000
Southeast Alabama Gas Supply District,
0.946%, 06/01/2049 (1 Month LIBOR USD + 0.850%)
(Callable 03/01/2024)
(Mandatory Tender Date 06/01/2024)(2)		750,000		748,800
Tallassee Board of Education:
4.000%, 08/01/2029 (Insured by AGM)		420,000		517,410
4.000%, 08/01/2030 (Insured by AGM)		435,000		543,541
4.000%, 08/01/2031
(Callable 08/01/2030) (Insured by AGM)		455,000		565,597
4.000%, 08/01/2032
(Callable 08/01/2030) (Insured by AGM)		470,000		580,596
UAB Medicine Finance Authority,
4.000%, 09/01/2038 (Callable 09/01/2029)		500,000		595,400
Total Alabama
(Cost $28,173,907)				29,051,438		3.4	%
Alaska
Alaska Housing Finance Corp.:
5.000%, 12/01/2029 (Callable 06/01/2024)		225,000		255,510
5.000%, 12/01/2031 (Callable 06/01/2028)		500,000		620,095
3.450%, 12/01/2033 (Callable 06/01/2027)		675,000		692,941
4.000%, 06/01/2036 (Callable 06/01/2025)		1,750,000		1,945,283
3.750%, 12/01/2046 (Callable 02/01/2021)		270,000		270,710
Alaska Industrial Development & Export Authority,
4.000%, 10/01/2034 (Callable 10/01/2029)		1,585,000		1,874,088
Alaska Municipal Bond Bank Authority,
5.000%, 08/01/2027 (Callable 08/01/2023)		500,000		553,345
University of Alaska:
4.000%, 10/01/2025		170,000		187,617
4.000%, 10/01/2026 (Callable 10/01/2023)		650,000		690,164
5.000%, 10/01/2044
(Callable 10/01/2026) (Insured by AGM)		1,500,000		1,696,740
Total Alaska
(Cost $8,450,061)				8,786,493		1.0	%

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Arizona
Arizona Health Facilities Authority,
5.250%, 03/01/2039 (Pre-refunded to 03/01/2021)	$	270,000	$	272,122
Arizona Industrial Development Authority:
3.375%, 07/01/2021(3)		190,000		191,263
2.500%, 05/01/2022 (Insured by AGM)(3)		3,379,020		3,401,862
4.000%, 07/01/2023 (Insured by SD CRED PROG)		115,000		122,994
4.000%, 07/01/2023 (Insured by SD CRED PROG)		100,000		107,027
4.000%, 07/01/2024 (Insured by SD CRED PROG)		200,000		219,114
4.000%, 07/01/2025 (Insured by SD CRED PROG)		100,000		112,206
4.000%, 07/01/2026 (Insured by SD CRED PROG)		100,000		114,124
5.000%, 02/01/2028		200,000		257,822
5.000%, 05/01/2028		270,000		285,501
4.625%, 08/01/2028(3)		1,160,000		1,263,031
5.000%, 02/01/2030		340,000		453,897
Arizona State University,
5.000%, 07/01/2029 (Callable 07/01/2024)		150,000		172,627
City of Tucson AZ,
5.000%, 07/01/2032 (Callable 07/01/2025)		500,000		596,095
Kyrene Elementary School District No. 28,
4.000%, 07/01/2033 (Callable 07/01/2025)		1,500,000		1,692,135
Maricopa County Industrial Development Authority:
2.625%, 07/01/2021		55,000		55,038
5.000%, 07/01/2028 (Insured by SD CRED PROG)		755,000		933,641
Town of Marana AZ:
4.000%, 07/01/2036 (Callable 07/01/2027)		350,000		404,282
4.000%, 07/01/2037 (Callable 07/01/2027)		500,000		576,165
Total Arizona
(Cost $10,825,542)				11,230,946		1.3	%
Arkansas
Arkansas Development Finance Authority:
4.000%, 12/01/2031 (Callable 12/01/2027)		380,000		443,893
4.000%, 12/01/2032 (Callable 12/01/2027)		400,000		464,880
4.000%, 12/01/2033 (Callable 12/01/2027)		415,000		480,703
4.000%, 12/01/2034 (Callable 12/01/2027)		430,000		497,390
4.000%, 12/01/2035 (Callable 12/01/2027)		445,000		513,383
4.000%, 12/01/2038 (Callable 12/01/2027)		250,000		286,320
4.000%, 06/01/2045 (Callable 12/01/2027)		2,250,000		2,589,907
Arkansas Technical University,
4.000%, 06/01/2028 (Callable 06/01/2023)		1,025,000		1,086,746
Carroll-Boone Water District:
3.000%, 12/01/2028 (Callable 12/01/2025)		780,000		841,932
3.000%, 12/01/2029 (Callable 12/01/2025)		505,000		541,562
3.000%, 12/01/2030 (Callable 12/01/2025)		630,000		672,393
3.000%, 12/01/2032 (Callable 12/01/2025)		1,060,000		1,121,660

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Conway AR,
5.000%, 10/01/2035 (Callable 04/01/2024)	$	185,000	$	209,731
City of Fayetteville AR:
1.750%, 11/01/2032 (Callable 11/01/2026)		1,500,000		1,527,705
3.050%, 01/01/2047 (Callable 01/01/2027)		905,000		940,114
City of Heber Springs AR,
3.000%, 11/01/2034
(Callable 11/01/2024) (Insured by BAM)		685,000		719,305
City of Hot Springs AR,
4.000%, 12/01/2030
(Callable 12/01/2023) (Insured by BAM)		540,000		588,724
City of Little Rock AR:
4.000%, 10/01/2031 (Callable 10/01/2025)		105,000		119,579
4.000%, 10/01/2033 (Callable 10/01/2025)		210,000		235,944
City of Lonoke AR:
5.000%, 06/01/2025		210,000		250,442
4.000%, 06/01/2028 (Callable 06/01/2025)		50,000		57,163
City of Magnolia AR,
3.200%, 08/01/2033
(Callable 08/01/2024) (Insured by BAM)		1,085,000		1,161,221
City of Marion AR,
2.900%, 09/01/2047 (Callable 09/01/2027)		225,000		229,577
City of Maumelle AR:
4.000%, 08/01/2026 (Callable 08/01/2025)		25,000		27,913
4.000%, 08/01/2028 (Callable 08/01/2025)		290,000		320,847
4.000%, 08/01/2029 (Callable 08/01/2025)		700,000		771,148
4.000%, 08/01/2030 (Callable 08/01/2025)		325,000		356,860
City of North Little Rock AR:
4.000%, 11/01/2028 (Callable 05/01/2027)		645,000		759,172
4.000%, 11/01/2030 (Callable 05/01/2027)		650,000		754,715
City of Pine Bluff AR,
3.000%, 02/01/2047
(Callable 08/01/2027) (Insured by BAM)		820,000		877,990
City of Rogers AR,
3.250%, 11/01/2043 (Callable 11/01/2026)		1,485,000		1,569,511
City of Russellville AR,
4.000%, 07/01/2028
(Callable 07/01/2025) (Insured by AGM)		325,000		373,389
City of Sherwood AR,
3.050%, 12/01/2043 (Callable 12/01/2026)		395,000		413,565
City of Springdale AR,
3.000%, 04/01/2043
(Callable 04/01/2024) (Insured by BAM)		890,000		913,202
Conway Health Facilities Board,
5.000%, 08/01/2029 (Callable 08/01/2026)		360,000		429,430

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Jackson County Special School District,
1.500%, 02/01/2024
(Callable 08/01/2022) (Insured by ST AID)	$	60,000	$	60,890
Little Rock Metrocentere Improvement District No. 1,
0.030%, 12/01/2025 (Optional Put Date 01/04/2021)(1)		1,000,000		1,000,000
National Park College District,
3.000%, 05/01/2025 (Callable 11/01/2024)		235,000		252,801
Southern Arkansas University:
4.000%, 03/01/2025 (Insured by AGM)		415,000		473,133
4.000%, 03/01/2026
(Callable 03/01/2025) (Insured by AGM)		520,000		591,380
4.000%, 03/01/2026
(Callable 03/01/2025) (Insured by AGM)		270,000		306,113
4.000%, 03/01/2027
(Callable 03/01/2025) (Insured by AGM)		545,000		617,142
4.000%, 03/01/2027
(Callable 03/01/2025) (Insured by AGM)		275,000		310,560
4.000%, 03/01/2028
(Callable 03/01/2025) (Insured by AGM)		165,000		186,052
4.000%, 03/01/2028
(Callable 03/01/2025) (Insured by AGM)		100,000		112,323
University of Central Arkansas:
4.000%, 11/01/2027
(Callable 11/01/2025) (Insured by BAM)		340,000		385,461
4.000%, 11/01/2028
(Callable 11/01/2025) (Insured by BAM)		250,000		282,143
4.000%, 11/01/2031
(Callable 11/01/2025) (Insured by BAM)		885,000		987,616
Total Arkansas
(Cost $27,678,695)				28,713,630		3.3	%
California
Acalanes Union High School District:
0.000%, 08/01/2028(7)		105,000		114,287
0.000%, 08/01/2032(7)		365,000		452,640
0.000%, 08/01/2035 (Callable 08/01/2029)(7)		200,000		232,976
0.000%, 08/01/2039 (Callable 08/01/2029)(7)		125,000		144,418
American Valley Community Services District,
1.500%, 11/01/2023 (Callable 11/01/2022)(3)		4,000,000		4,058,080
Bay Area Toll Authority,
1.170%, 04/01/2045
(SIFMA Municipal Swap Index + 1.100%)
(Callable 10/01/2023)
(Mandatory Tender Date 04/01/2024)(2)		650,000		658,651

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Beaumont Unified School District,
0.000%, 08/01/2041
(Pre-refunded to 08/01/2026) (Insured by AGM)(7)	$	90,000	$	119,220
Burbank Unified School District,
0.000%, 02/01/2038 (Callable 08/01/2028)(7)		210,000		229,242
California Health Facilities Financing Authority:
4.000%, 08/15/2035 (Callable 08/15/2026)		3,000,000		3,476,730
5.250%, 03/01/2041 (Pre-refunded to 03/01/2021)		135,000		136,068
California Municipal Finance Authority:
3.000%, 01/01/2021		230,000		230,000
5.000%, 08/01/2023		400,000		417,028
5.000%, 08/01/2024		400,000		422,312
5.000%, 10/01/2026		300,000		362,634
4.000%, 01/01/2048 (Pre-refunded to 01/01/2028)		200,000		247,864
California Public Finance Authority,
5.000%, 10/15/2021		200,000		205,894
Calipatria California Unified School District,
0.000%, 08/01/2026		100,000		93,743
Campbell Union School District,
0.000%, 08/01/2035 (Callable 08/01/2026)(7)		785,000		958,838
Carlsbad Unified School District,
0.000%, 08/01/2031(7)		125,000		173,350
Chawanakee Unified School District:
4.000%, 08/01/2026 (Insured by BAM)(7)		110,000		130,977
4.000%, 08/01/2027
(Callable 08/01/2026) (Insured by BAM)(7)		100,000		118,399
4.000%, 08/01/2028
(Callable 08/01/2026) (Insured by BAM)(7)		75,000		88,237
4.000%, 08/01/2029
(Callable 08/01/2026) (Insured by BAM)(7)		80,000		93,492
City & County of San Francisco CA,
1.300%, 07/01/2023
(Mandatory Tender Date 01/01/2023)(1)		400,000		404,516
City of Redding CA,
0.280%, 07/01/2022 (ETM) (Insured by NATL)(1)(5)		55,000		55,000
Colton Joint Unified School District,
0.000%, 08/01/2035
(Pre-refunded to 08/01/2026) (Insured by AGM)(7)		300,000		378,579
Denair Unified School District,
0.000%, 08/01/2031 (Insured by AGM)(7)		130,000		177,826
Desert Hot Springs Redevelopment
Agency Successor Agency,
5.000%, 09/01/2029
(Callable 09/01/2027) (Insured by BAM)		300,000		374,679

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
El Rancho Unified School District,
0.000%, 08/01/2034
(Callable 08/01/2028) (Insured by AGM)(7)	$	475,000	$	579,353
Encinitas Union School District,
0.000%, 08/01/2031(7)		205,000		277,299
Enterprise Elementary School District,
0.000%, 08/01/2035 (Callable 08/01/2031)(7)		155,000		222,568
Escondido Union High School District:
0.000%, 08/01/2029 (Insured by AGC)		500,000		448,545
6.875%, 08/01/2034 (Insured by AGC)(7)		330,000		557,806
Fontana Unified School District:
3.000%, 08/01/2040
(Callable 08/01/2028) (Insured by BAM)		2,400,000		2,637,456
3.000%, 08/01/2041
(Callable 08/01/2028) (Insured by BAM)		1,750,000		1,917,545
Fresno Joint Powers Financing Authority,
5.000%, 04/01/2027 (Insured by AGM)		305,000		380,759
Grossmont Union High School District,
0.000%, 08/01/2039
(Callable 02/01/2025) (Insured by AGM)		500,000		227,905
Hueneme Elementary School District:
4.000%, 08/01/2037
(Callable 08/01/2028) (Insured by AGM)		500,000		591,575
4.000%, 08/01/2038
(Callable 08/01/2028) (Insured by AGM)		1,050,000		1,239,326
4.000%, 08/01/2039
(Callable 08/01/2028) (Insured by AGM)		660,000		777,440
Imperial Community College District,
7.000%, 08/01/2040
(Pre-refunded to 08/01/2030) (Insured by AGM)(7)		140,000		216,825
Lake Elsinore Redevelopment Agency Successor Agency,
5.000%, 09/01/2027
(Callable 09/01/2025) (Insured by BAM)		275,000		329,161
Lemoore Union High School District,
0.000%, 01/01/2021 (Insured by AMBAC)		100,000		100,000
Long Beach Bond Finance Authority:
5.250%, 11/15/2023		90,000		102,246
5.000%, 11/15/2029		50,000		64,851
Los Alamitos Unified School District,
0.000%, 08/01/2041 (Callable 08/01/2031)(7)		500,000		545,040
Mayers Memorial Hospital District:
0.000%, 08/01/2027		260,000		222,932
0.000%, 08/01/2028		290,000		241,001

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Menifee Union School District:
3.000%, 08/01/2038
(Callable 08/01/2030) (Insured by AGM)	$	330,000	$	369,154
3.000%, 08/01/2040
(Callable 08/01/2030) (Insured by AGM)		700,000		776,356
3.000%, 08/01/2045
(Callable 08/01/2030) (Insured by AGM)		1,000,000		1,091,280
Mizuho Floater/Residual Trust,
0.270%, 09/01/2046 (Callable 02/01/2021)
(Optional Put Date 01/07/2021)(1)(3)		4,000,000		4,000,000
Mount Diablo Unified School District,
0.000%, 08/01/2035
(Callable 08/01/2025) (Insured by AGM)(7)		175,000		193,748
Norwalk-La Mirada Unified School District,
0.000%, 08/01/2029 (Insured by AGC)(7)		235,000		299,529
Oak Park Unified School District:
0.000%, 08/01/2031(7)		160,000		226,037
0.000%, 08/01/2038
(Callable 08/01/2031) (Insured by AGM)(7)		110,000		163,586
Ontario Montclair School District,
0.000%, 08/01/2028 (Insured by NATL)		1,450,000		1,330,491
Pajaro Valley Unified School District:
5.000%, 08/01/2032
(Callable 01/21/2021) (Insured by BAM)		120,000		120,205
5.000%, 08/01/2033
(Callable 01/21/2021) (Insured by BAM)		300,000		300,504
Palomar Community College District,
0.000%, 08/01/2039 (Callable 08/01/2035)(7)		385,000		504,173
Peralta Community College District,
3.500%, 08/01/2033 (Callable 08/01/2025)		1,325,000		1,458,056
Reef-Sunset Unified School District,
0.000%, 08/01/2033
(Callable 08/01/2026) (Insured by BAM)(7)		200,000		226,366
Rio Hondo Community College District:
0.000%, 08/01/2042 (Callable 08/01/2034)(7)		145,000		195,779
0.000%, 08/01/2042 (Callable 08/01/2034)(7)		490,000		671,026
Riverside County Redevelopment Successor Agency,
0.000%, 10/01/2041
(Callable 10/01/2026) (Insured by BAM)(7)		100,000		113,142
Sacramento City Unified School District,
5.000%, 07/01/2025 (Callable 07/01/2024)		505,000		575,043
San Diego Unified School District:
4.000%, 07/01/2032 (Callable 07/01/2026)		165,000		193,090
0.000%, 07/01/2034 (Callable 07/01/2025)		1,650,000		1,083,241

The accompanying notes are an integral part of these financial statements.

Page 382

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
San Jacinto Unified School District,
3.000%, 09/01/2028 (Insured by BAM)	$	400,000	$	424,820
San Mateo Foster City School District,
0.000%, 08/01/2026(7)		75,000		85,268
Santa Barbara Unified School District,
0.000%, 08/01/2036 (Callable 08/01/2033)(7)		470,000		677,670
Santa Paula Union High School District,
0.000%, 08/01/2037 (Callable 08/01/2027)(7)		160,000		182,422
Savanna School District,
0.000%, 08/01/2047
(Callable 08/01/2029) (Insured by AGM)(7)		875,000		955,413
School District of Belmont-Redwood Shores CA,
0.000%, 08/01/2031 (Callable 08/01/2026)(7)		100,000		123,804
Sebastopol Union School District,
0.000%, 08/01/2042
(Callable 08/01/2031) (Insured by AGM)(7)		135,000		135,859
Solano County Community College District:
0.000%, 08/01/2027 (Callable 08/01/2025)(7)		245,000		263,931
0.000%, 08/01/2028 (Callable 08/01/2025)(7)		80,000		85,776
0.000%, 08/01/2030 (Callable 08/01/2025)(7)		285,000		302,442
0.000%, 08/01/2041 (Callable 08/01/2028)(7)		390,000		443,715
South Placer Wastewater Authority,
5.000%, 11/01/2034		500,000		720,620
Summerville Union High School District,
0.000%, 08/01/2033
(Callable 08/01/2028) (Insured by BAM)(7)		25,000		27,278
Temecula Valley Unified School District,
4.500%, 08/01/2035
(Callable 08/01/2024) (Insured by BAM)(7)		200,000		222,326
Tender Option Bond Trust:
0.270%, 07/01/2022
(Optional Put Date 01/07/2021)(1)(3)		1,818,000		1,818,000
0.270%, 06/15/2055(1)(3)		3,000,000		3,000,000
University of California,
5.000%, 05/15/2043 (Callable 05/15/2028)		690,000		874,237
West Hills Community College District,
0.000%, 08/01/2035
(Callable 08/01/2027) (Insured by AGM)(7)		50,000		57,201
Westside Union School District,
0.000%, 08/01/2028		160,000		146,923
Wiseburn School District,
0.000%, 08/01/2036
(Callable 08/01/2031) (Insured by AGM)(7)		50,000		57,505
Total California
(Cost $48,572,418)				50,731,329		5.9	%

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Colorado
Board of Governors of Colorado State University System,
5.000%, 03/01/2032 (Callable 03/01/2027)	$	125,000	$	152,991
Boulder Valley School District No. Re-2,
5.000%, 12/01/2038
(Callable 06/01/2025) (Insured by ST AID)		2,000,000		2,357,440
Bromley Park Metropolitan District No. 2,
5.000%, 12/01/2023 (Insured by BAM)		225,000		253,415
Canterberry Crossing Metropolitan District II:
5.000%, 12/01/2030
(Callable 12/01/2028) (Insured by AGM)		235,000		304,431
5.000%, 12/01/2031
(Callable 12/01/2028) (Insured by AGM)		250,000		322,452
5.000%, 12/01/2032
(Callable 12/01/2028) (Insured by AGM)		530,000		679,757
City & County of Denver CO:
0.000%, 08/01/2030 (Callable 08/01/2026)		500,000		406,635
0.000%, 08/01/2031 (Callable 08/01/2026)		150,000		116,286
0.000%, 08/01/2032 (Callable 08/01/2026)		335,000		248,295
City of Commerce City CO:
5.000%, 12/15/2028
(Callable 12/15/2027) (Insured by AGM)		100,000		127,719
5.000%, 12/15/2029
(Callable 12/15/2027) (Insured by AGM)		310,000		393,486
5.000%, 12/15/2030
(Callable 12/15/2027) (Insured by AGM)		500,000		632,255
City of Fort Lupton CO:
5.000%, 12/01/2027 (Insured by AGM)		75,000		96,871
5.000%, 12/01/2028
(Callable 12/01/2027) (Insured by AGM)		210,000		270,396
5.000%, 12/01/2029
(Callable 12/01/2027) (Insured by AGM)		250,000		319,920
5.000%, 12/01/2030
(Callable 12/01/2027) (Insured by AGM)		350,000		447,507
City of Sheridan CO,
5.000%, 12/01/2042 (Callable 12/01/2025)		1,130,000		1,349,650
Colorado Educational & Cultural Facilities Authority:
4.000%, 11/15/2021		225,000		231,835
5.000%, 10/01/2022		1,300,000		1,363,999
4.000%, 11/15/2022		445,000		468,452
5.000%, 10/01/2023		700,000		752,486
4.000%, 12/15/2025		1,320,000		1,402,025
4.000%, 04/01/2028		540,000		612,371
5.000%, 06/01/2029 (Callable 06/01/2024)		120,000		134,342
5.000%, 08/15/2030 (Callable 08/15/2024)		500,000		564,835

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Colorado Educational & Cultural
Facilities Authority: (cont.)
2.000%, 09/01/2030 (Callable 09/01/2028)	$	270,000	$	276,102
5.000%, 06/01/2031 (Callable 06/01/2024)		40,000		44,558
5.000%, 08/15/2034 (Callable 08/15/2024)		1,000,000		1,120,010
Colorado Health Facilities Authority:
5.000%, 12/01/2023		90,000		100,839
5.000%, 06/01/2027 (ETM)		750,000		963,585
5.000%, 09/01/2027		205,000		254,337
5.000%, 12/01/2030 (Callable 06/01/2025)		405,000		461,323
5.000%, 08/01/2036 (Callable 08/01/2029)		150,000		189,767
4.000%, 10/01/2037 (Callable 10/01/2030)		320,000		376,544
5.000%, 08/01/2049 (Callable 02/01/2026)
(Mandatory Tender Date 08/01/2026)(1)		3,130,000		3,782,605
Colorado Housing & Finance Authority:
4.000%, 05/01/2048
(Callable 11/01/2026) (Insured by GNMA)		320,000		348,349
4.250%, 11/01/2049
(Callable 11/01/2028) (Insured by GNMA)		2,320,000		2,609,791
Colorado School of Mines,
5.000%, 12/01/2029
(Callable 12/01/2027) (Insured by ST AID)		125,000		158,999
County of Moffat CO,
2.000%, 03/01/2036
(Mandatory Tender Date 10/03/2022)(1)		50,000		50,906
Crystal Valley Metropolitan District No. 2:
4.000%, 12/01/2037
(Callable 12/01/2030) (Insured by AGM)		800,000		971,920
4.000%, 12/01/2038
(Callable 12/01/2030) (Insured by AGM)		1,000,000		1,211,230
4.000%, 12/01/2039
(Callable 12/01/2030) (Insured by AGM)		1,785,000		2,157,190
Denver City & County School District No. 1:
5.000%, 12/01/2030 (Callable 03/01/2021)		395,000		397,852
5.000%, 12/01/2031 (Callable 03/01/2021)		595,000		599,284
Denver Health & Hospital Authority:
5.000%, 12/01/2025		400,000		470,604
5.000%, 12/01/2027		340,000		417,003
E-470 Public Highway Authority:
0.000%, 09/01/2029 (Insured by NATL)		2,550,000		2,265,879
1.138%, 09/01/2039 (1 Month LIBOR USD + 1.050%)
(Callable 03/01/2021)
(Mandatory Tender Date 09/01/2021)(2)		500,000		500,365
Glen Metropolitan District No. 1,
2.500%, 12/01/2025 (Insured by BAM)		90,000		94,112

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Glen Metropolitan District No. 2,
2.000%, 12/01/2030 (Insured by BAM)	$	295,000	$	295,322
Grand River Hospital District:
5.250%, 12/01/2030
(Callable 12/01/2028) (Insured by AGM)		350,000		443,341
5.250%, 12/01/2031
(Callable 12/01/2028) (Insured by AGM)		1,190,000		1,495,866
Prairie Center Metropolitan District No. 7,
4.125%, 12/15/2036 (Callable 12/15/2025)		465,000		483,526
Regional Transportation District,
5.000%, 11/01/2033 (Callable 11/01/2027)		500,000		628,300
Southlands Metropolitan District No. 1,
3.000%, 12/01/2022		80,000		81,036
Sterling Hills West Metropolitan District,
5.000%, 12/01/2027		230,000		280,911
Stetson Ridge Metropolitan District No. 3,
2.000%, 12/01/2030 (Insured by AGM)		950,000		957,733
Vauxmont Metropolitan District:
5.000%, 12/15/2028
(Callable 12/15/2024) (Insured by AGM)		125,000		147,162
5.000%, 12/15/2029
(Callable 12/15/2024) (Insured by AGM)		125,000		146,612
5.000%, 12/15/2030
(Callable 12/15/2024) (Insured by AGM)		125,000		146,278
5.000%, 12/15/2031
(Callable 12/15/2024) (Insured by AGM)		135,000		157,607
3.250%, 12/15/2050
(Callable 12/15/2024) (Insured by AGM)		2,675,000		2,877,578
Vista Ridge Metropolitan District:
5.000%, 12/01/2025 (Insured by BAM)		600,000		727,224
5.000%, 12/01/2026 (Insured by BAM)		460,000		573,928
Total Colorado
(Cost $40,672,352)				43,275,429		5.0	%
Connecticut
City of Hartford CT,
5.000%, 04/01/2027
(Callable 04/01/2023) (Insured by BAM)		550,000		601,188
Connecticut Housing Finance Authority:
4.000%, 11/15/2047 (Callable 11/15/2026)		145,000		156,984
4.000%, 05/15/2049 (Callable 11/15/2028)		1,420,000		1,619,340
Connecticut State Health &
Educational Facilities Authority:
5.000%, 11/01/2026		500,000		621,130
5.000%, 11/01/2026 (Callable 11/01/2022)		135,000		145,612

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Connecticut State Health &
Educational Facilities Authority: (cont.)
5.000%, 07/01/2030 (Callable 07/01/2021)	$	150,000	$	152,589
4.250%, 07/01/2031 (Callable 07/01/2022)		1,050,000		1,083,128
5.000%, 07/01/2034 (Callable 07/01/2022)		40,000		41,820
Connecticut State Higher
Education Supplement Loan Authority:
5.000%, 11/15/2021		825,000		856,713
5.000%, 11/15/2027 (Callable 11/15/2026)		125,000		152,147
3.000%, 11/15/2035 (Callable 11/15/2026)		850,000		887,409
State of Connecticut:
5.000%, 04/15/2024		175,000		201,477
5.000%, 10/01/2027 (Callable 10/01/2023)		685,000		767,652
5.000%, 07/15/2030 (Callable 07/15/2023)		225,000		248,504
5.000%, 10/15/2032 (Callable 10/15/2022)		960,000		1,028,784
5.000%, 09/01/2033 (Callable 09/01/2026)		300,000		362,838
5.000%, 05/01/2034 (Callable 05/01/2030)		1,500,000		1,993,125
University of Connecticut:
5.000%, 01/15/2031
(Callable 01/15/2027) (Insured by AGM)		1,000,000		1,237,590
5.000%, 02/15/2031 (Callable 02/15/2021)		100,000		100,540
4.000%, 11/01/2037
(Callable 11/01/2028) (Insured by BAM)		1,175,000		1,378,957
Total Connecticut
(Cost $12,861,333)				13,637,527		1.6	%
District of Columbia
District of Columbia Housing Finance Agency,
3.500%, 06/15/2023		225,000		233,241
District of Columbia Water & Sewer Authority,
5.000%, 10/01/2037 (Callable 04/01/2026)		275,000		333,259
Metropolitan Washington Airports Authority:
0.000%, 10/01/2029 (Insured by AGC)		110,000		96,802
5.000%, 10/01/2033 (Callable 10/01/2025)		250,000		294,980
0.000%, 10/01/2036 (Insured by AGC)		1,355,000		968,405
6.500%, 10/01/2041
(Callable 10/01/2026) (Insured by AGC)(7)		355,000		445,099
6.500%, 10/01/2044 (Callable 10/01/2028)(7)		665,000		877,454
6.500%, 10/01/2044
(Callable 10/01/2028) (Insured by AGM)(7)		960,000		1,265,088
5.000%, 10/01/2053 (Callable 04/01/2022)		1,210,000		1,260,663
Total District of Columbia
(Cost $5,383,327)				5,774,991		0.7	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Florida
Capital Trust Agency, Inc.,
5.000%, 12/15/2029 (Callable 06/15/2026)	$	400,000	$	454,768
City of Fort Myers FL:
5.000%, 12/01/2029 (Callable 12/01/2025)		475,000		575,206
4.000%, 12/01/2037 (Callable 12/01/2025)		1,000,000		1,102,320
4.000%, 12/01/2038 (Callable 12/01/2025)		500,000		550,270
City of Jacksonville FL:
0.040%, 05/01/2029 (Optional Put Date 01/04/2021)(1)		4,500,000		4,500,000
4.000%, 11/01/2032 (Callable 11/01/2029)		375,000		443,696
4.000%, 10/01/2033 (Callable 10/01/2026)		1,895,000		2,196,040
City of Orlando FL:
5.000%, 11/01/2025 (Insured by AGM)		400,000		480,892
5.000%, 11/01/2034
(Callable 11/01/2027) (Insured by AGM)		775,000		952,940
City of Tallahassee FL:
5.000%, 12/01/2023		400,000		444,264
5.000%, 12/01/2024		300,000		344,244
5.000%, 12/01/2029 (Callable 12/01/2025)		585,000		679,226
5.000%, 10/01/2033 (Callable 10/01/2025)		1,250,000		1,499,875
5.000%, 10/01/2034 (Callable 10/01/2024)		500,000		580,860
County of Jackson FL,
0.060%, 07/01/2022 (Optional Put Date 01/04/2021)(1)		1,430,000		1,430,000
County of Manatee FL,
0.020%, 09/01/2024 (Optional Put Date 01/04/2021)(1)		2,000,000		2,000,000
County of Miami-Dade FL:
5.000%, 04/01/2027 (Callable 04/01/2026)		120,000		147,358
5.000%, 10/01/2032 (Callable 10/01/2026)		135,000		162,842
6.875%, 10/01/2034
(Callable 10/01/2029) (Insured by AGC)(7)		255,000		373,103
7.000%, 10/01/2039
(Callable 10/01/2029) (Insured by AGC)(7)		390,000		572,294
County of St. Lucie FL,
0.030%, 09/01/2028 (Optional Put Date 01/04/2021)(1)		5,000,000		5,000,000
Florida Department of Management Services,
5.000%, 11/01/2029		2,000,000		2,684,600
Florida Development Finance Corp.:
5.000%, 04/01/2028		400,000		501,120
5.000%, 04/01/2029		250,000		318,753
Florida Higher Educational Facilities Financial Authority,
5.000%, 10/01/2023		500,000		538,380
Florida Housing Finance Corp.:
4.200%, 01/01/2045
(Callable 01/01/2028) (Insured by GNMA)		1,625,000		1,795,641
4.350%, 01/01/2046 (Callable 01/01/2024)		310,000		321,991

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Florida Housing Finance Corp.: (cont.)
3.800%, 07/01/2047
(Callable 01/01/2027) (Insured by GNMA)	$	555,000	$	574,719
4.000%, 07/01/2047
(Callable 07/01/2025) (Insured by GNMA)		200,000		213,356
4.000%, 07/01/2049
(Callable 07/01/2027) (Insured by GNMA)		185,000		202,316
Florida Municipal Loan Council,
5.000%, 10/01/2026		90,000		112,470
Florida Municipal Power Agency,
4.000%, 10/01/2030 (Callable 10/01/2027)		500,000		585,805
Highlands County Health Facilities Authority,
0.070%, 11/15/2037 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		6,500,000		6,500,000
Hillsborough County Aviation Authority,
5.000%, 10/01/2035 (Callable 10/01/2024)		500,000		567,930
JEA Water & Sewer System Revenue:
5.000%, 10/01/2028 (Callable 10/01/2027)		700,000		900,655
5.000%, 10/01/2032 (Callable 10/01/2027)		700,000		886,046
Miami Health Facilities Authority,
5.000%, 07/01/2021		165,000		164,786
Miami-Dade County Industrial Development Authority,
5.000%, 01/15/2021		365,000		365,332
Monroe County School District,
5.000%, 10/01/2025 (Insured by AGM)		200,000		242,164
Orange County Convention Center:
5.000%, 10/01/2032 (Callable 10/01/2026)		1,000,000		1,205,620
4.000%, 10/01/2034 (Callable 10/01/2026)		250,000		284,820
4.000%, 10/01/2036 (Callable 10/01/2026)		300,000		340,281
Orange County Health Facilities Authority:
5.000%, 08/01/2028 (Callable 08/01/2024)		2,500,000		2,802,350
5.000%, 10/01/2035 (Callable 10/01/2026)		1,210,000		1,454,577
Orange County School Board:
5.000%, 08/01/2031 (Callable 08/01/2025)		990,000		1,182,684
5.000%, 08/01/2033 (Callable 08/01/2026)		150,000		183,414
Palm Beach County Health Facilities Authority:
5.000%, 05/15/2023		1,160,000		1,238,729
5.000%, 05/15/2024		300,000		327,675
4.000%, 05/15/2035 (Callable 05/15/2025)		175,000		180,075
Pinellas County School Board,
5.000%, 07/01/2033 (Callable 07/01/2027)		515,000		637,549
Putnam County Development Authority,
0.020%, 09/01/2024 (Optional Put Date 01/04/2021)(1)		2,100,000		2,100,000
Reedy Creek Improvement District,
4.000%, 06/01/2035 (Callable 06/01/2027)		1,000,000		1,157,120

The accompanying notes are an integral part of these financial statements.

Page 389

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
School Board of Miami-Dade County,
5.000%, 11/01/2030 (Callable 11/01/2024)	$	185,000	$	214,733
Tender Option Bond Trust,
0.270%, 01/01/2046 (Callable 01/01/2025)
(Optional Put Date 01/07/2021)(1)(3)		2,230,000		2,230,000
University Park Recreation District:
2.750%, 05/01/2021 (Insured by BAM)		260,000		261,685
2.750%, 05/01/2022 (Insured by BAM)		265,000		271,959
2.750%, 05/01/2023 (Insured by BAM)		270,000		282,055
Village Community Development District No. 13,
2.625%, 05/01/2024		500,000		509,330
Village Community Development District No. 7,
4.000%, 05/01/2021		215,000		217,066
Total Florida
(Cost $56,848,264)				59,047,984		6.8	%
Georgia
Auburn Urban Redevelopment Agency:
4.000%, 10/01/2029 (Insured by BAM)		210,000		262,433
4.000%, 10/01/2030 (Insured by BAM)		275,000		349,066
Barnesville-Lamar County
Industrial Development Authority,
5.000%, 06/01/2028		175,000		219,415
Burke County Development Authority:
2.250%, 10/01/2032
(Mandatory Tender Date 05/25/2023)(1)		500,000		517,405
0.050%, 11/01/2052 (Optional Put Date 01/04/2021)(1)		6,505,000		6,505,000
Carrollton Payroll Development Authority,
5.000%, 07/01/2029		1,175,000		1,491,745
City of Atlanta GA:
5.000%, 01/01/2025 (Callable 02/01/2021)		225,000		225,785
5.500%, 11/01/2027 (Insured by AGM)		145,000		180,073
5.000%, 01/01/2028 (Callable 02/01/2021)		1,000,000		1,003,390
City of Dahlonega GA,
4.000%, 09/01/2021 (Insured by AGM)		150,000		153,531
City of Monroe GA:
4.000%, 12/01/2036
(Callable 12/01/2030) (Insured by AGM)		500,000		617,070
4.000%, 12/01/2037
(Callable 12/01/2030) (Insured by AGM)		750,000		922,725
Clayton County Development Authority,
4.000%, 07/01/2031 (Callable 07/01/2027)		495,000		563,142
Development Authority for Fulton County,
5.000%, 10/01/2029		1,710,000		2,154,087

The accompanying notes are an integral part of these financial statements.

Page 390

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Development Authority of Bulloch County:
5.000%, 07/01/2030	$	405,000	$	526,447
5.000%, 07/01/2031 (Callable 07/01/2030)		420,000		543,253
5.000%, 07/01/2032 (Callable 07/01/2030)		445,000		572,212
5.000%, 07/01/2033 (Callable 07/01/2030)		465,000		594,735
4.000%, 07/01/2039 (Callable 07/01/2030)		295,000		343,475
Development Authority of Cobb County:
5.000%, 07/15/2028 (Callable 07/15/2027)		305,000		378,968
5.000%, 06/01/2035 (Callable 06/01/2027)		645,000		776,490
Development Authority of Monroe County,
1.500%, 01/01/2039
(Mandatory Tender Date 02/03/2025)(1)		3,625,000		3,701,379
Gainesville & Hall County Hospital Authority:
5.000%, 02/15/2022		500,000		524,095
5.000%, 02/15/2029 (Callable 02/15/2027)		485,000		598,936
Georgia Housing & Finance Authority:
3.600%, 12/01/2033 (Callable 06/01/2027)		450,000		493,321
4.000%, 12/01/2039 (Callable 06/01/2026)		380,000		402,990
Main Street Natural Gas, Inc.:
0.926%, 08/01/2048 (1 Month LIBOR USD + 0.830%)
(Callable 09/01/2023)
(Mandatory Tender Date 12/01/2023)(2)		2,000,000		2,007,140
4.000%, 08/01/2049 (Callable 09/01/2024)
(Mandatory Tender Date 12/02/2024)(1)		585,000		663,197
Total Georgia
(Cost $26,743,435)				27,291,505		3.2	%
Illinois
Adams & Hancock Counties
Community Unit School District No. 4:
4.000%, 12/01/2027
(Callable 12/01/2025) (Insured by BAM)		290,000		330,632
4.000%, 12/01/2029
(Callable 12/01/2025) (Insured by BAM)		310,000		349,730
4.000%, 12/01/2030
(Callable 12/01/2025) (Insured by BAM)		325,000		365,592
4.000%, 12/01/2032
(Callable 12/01/2025) (Insured by BAM)		350,000		391,108
Bourbonnais Township Park District:
4.000%, 12/15/2023 (Insured by BAM)		100,000		108,230
4.000%, 12/15/2024 (Insured by BAM)		125,000		138,650
4.000%, 12/15/2025 (Insured by BAM)		130,000		147,576
Bureau County Township High School District No. 502,
4.000%, 12/01/2031
(Callable 12/01/2027) (Insured by BAM)		1,330,000		1,551,724

The accompanying notes are an integral part of these financial statements.

Page 391

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Channahon Park District:
4.000%, 12/15/2031
(Callable 12/15/2029) (Insured by BAM)	$	460,000	$	562,102
4.000%, 12/15/2034
(Callable 12/15/2029) (Insured by BAM)		510,000		614,218
4.000%, 12/15/2036
(Callable 12/15/2029) (Insured by BAM)		150,000		178,716
4.000%, 12/15/2038
(Callable 12/15/2029) (Insured by BAM)		595,000		703,879
Chicago Board of Education,
5.000%, 12/01/2023 (Insured by AGM)		1,000,000		1,111,570
Chicago Park District,
5.000%, 01/01/2024		580,000		642,889
City of Chicago IL:
5.000%, 01/01/2024		250,000		271,547
5.000%, 01/01/2025
(Callable 01/01/2024) (Insured by AGM)		110,000		123,548
5.000%, 01/01/2026 (Callable 01/01/2024)		250,000		263,278
0.000%, 01/01/2027 (Insured by NATL)		195,000		167,848
0.000%, 01/01/2027 (Insured by NATL)		330,000		304,646
5.000%, 11/01/2028
(Callable 11/01/2027) (Insured by AGM)		625,000		785,969
5.000%, 01/01/2030
(Callable 01/01/2024) (Insured by AGM)		445,000		497,283
5.625%, 01/01/2031 (Callable 01/01/2027)		250,000		291,492
4.000%, 11/01/2032
(Callable 11/01/2024) (Insured by BAM)		200,000		219,834
5.000%, 11/01/2033
(Callable 11/01/2027) (Insured by AGM)		375,000		457,163
5.000%, 01/01/2035
(Callable 01/01/2027) (Insured by AGM)		250,000		300,640
City of Decatur IL:
4.250%, 03/01/2030
(Callable 03/01/2024) (Insured by BAM)		250,000		276,050
5.000%, 03/01/2034
(Callable 03/01/2026) (Insured by BAM)		855,000		1,012,397
City of Rockford IL,
3.000%, 12/15/2022 (Insured by AGM)		150,000		156,147
Cook & Will Counties School District No. 194:
4.000%, 12/01/2025
(Callable 12/01/2024) (Insured by BAM)		160,000		181,789
4.000%, 12/01/2026
(Callable 12/01/2024) (Insured by BAM)		130,000		147,359
Cook County Community
Consolidated School District No. 65,
0.000%, 12/01/2023		200,000		195,084

The accompanying notes are an integral part of these financial statements.

Page 392

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Cook County School District No. 130:
5.000%, 12/01/2027
(Callable 12/01/2025) (Insured by AGM)	$	1,195,000	$	1,449,678
5.000%, 12/01/2028
(Callable 12/01/2025) (Insured by AGM)		1,000,000		1,210,960
Cook County School District No. 163:
6.000%, 12/15/2025 (Insured by BAM)		430,000		534,236
6.000%, 12/15/2027 (Insured by BAM)		1,150,000		1,515,332
Cook County School District No. 83,
5.625%, 06/01/2033		775,000		1,044,003
Darien Park District,
4.150%, 12/15/2026 (Callable 02/01/2021)		200,000		200,500
DuPage County High School District No. 87,
5.000%, 01/01/2029 (Callable 01/01/2025)		315,000		370,913
Exceptional Children Have Opportunities:
4.000%, 12/01/2034 (Callable 12/01/2029)		765,000		897,123
4.000%, 12/01/2035 (Callable 12/01/2029)		645,000		751,625
Ford, Champaign Counties Community
Unit School District No. 10,
5.000%, 12/01/2027
(Callable 12/01/2026) (Insured by AGM)		600,000		750,966
Hampshire Special Service Area No. 13:
3.000%, 03/01/2027 (Insured by BAM)		130,000		141,521
3.000%, 03/01/2028
(Callable 03/01/2027) (Insured by BAM)		140,000		150,956
3.000%, 03/01/2029
(Callable 03/01/2027) (Insured by BAM)		100,000		106,731
3.250%, 03/01/2032
(Callable 03/01/2027) (Insured by BAM)		165,000		175,966
3.300%, 03/01/2033
(Callable 03/01/2027) (Insured by BAM)		175,000		186,203
3.350%, 03/01/2034
(Callable 03/01/2027) (Insured by BAM)		185,000		196,753
3.400%, 03/01/2035
(Callable 03/01/2027) (Insured by BAM)		195,000		207,665
3.450%, 03/01/2036
(Callable 03/01/2027) (Insured by BAM)		205,000		218,229
3.500%, 03/01/2037
(Callable 03/01/2027) (Insured by BAM)		215,000		229,048
Henry & Whiteside Counties Community
Unit School District No. 228,
5.000%, 08/15/2031
(Callable 08/15/2025) (Insured by AGM)		270,000		321,489
Huntley Area Public Library District,
5.000%, 02/01/2037 (Callable 02/01/2029)		500,000		632,130

The accompanying notes are an integral part of these financial statements.

Page 393

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Illinois Development Finance Authority,
2.450%, 11/15/2039
(Mandatory Tender Date 03/03/2026)(1)	$	1,000,000	$	1,079,700
Illinois Educational Facilities Authority,
4.000%, 11/01/2036 (Callable 11/01/2022)		1,065,000		1,138,219
Illinois Finance Authority:
5.000%, 02/15/2021		100,000		100,490
5.000%, 10/01/2021		170,000		172,985
5.000%, 10/01/2023		105,000		111,289
5.000%, 11/01/2024		1,100,000		1,248,687
5.000%, 01/01/2029 (Callable 01/01/2027)		475,000		579,272
5.000%, 02/15/2029 (Callable 02/15/2027)		3,275,000		4,110,551
5.000%, 01/01/2030 (Callable 01/01/2027)		90,000		109,049
5.000%, 10/01/2030 (Callable 10/01/2026)		140,000		167,108
4.000%, 05/15/2034 (Callable 05/15/2026)		300,000		334,830
1.451%, 05/01/2036 (1 Month LIBOR USD + 1.350%)
(Callable 02/01/2021)
(Mandatory Tender Date 05/01/2021)(2)		300,000		300,036
4.000%, 12/01/2040 (Callable 12/01/2027)		270,000		305,054
4.000%, 12/01/2042 (Callable 12/01/2027)		275,000		308,897
6.000%, 10/01/2048 (Callable 10/01/2022)		1,000,000		1,042,760
Illinois Housing Development Authority:
3.500%, 08/01/2031
(Callable 08/01/2027) (Insured by GNMA)		355,000		396,162
3.100%, 02/01/2035 (Callable 02/01/2026)		935,000		995,083
2.450%, 06/01/2043
(Callable 01/01/2023) (Insured by GNMA)		487,502		498,978
4.250%, 10/01/2049 (Callable 04/01/2028)		1,820,000		2,035,379
Illinois Sports Facilities Authority:
5.000%, 06/15/2029 (Insured by BAM)		2,500,000		3,173,825
5.000%, 06/15/2030
(Callable 06/15/2029) (Insured by BAM)		1,155,000		1,457,645
Illinois State University,
5.000%, 04/01/2031
(Callable 04/01/2028) (Insured by AGM)		500,000		623,475
Joliet Park District:
4.000%, 02/01/2030
(Callable 02/01/2024) (Insured by BAM)		250,000		266,067
4.000%, 02/01/2033
(Callable 02/01/2023) (Insured by AGM)		315,000		327,408
Kankakee County School District No. 111,
4.000%, 01/01/2025 (Insured by BAM)		480,000		535,574
Kendall & Kane Counties Community
Unit School District No. 115,
0.000%, 01/01/2022 (Insured by NATL)		1,090,000		1,084,092

The accompanying notes are an integral part of these financial statements.

Page 394

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Kendall Kane & Will Counties Community
Unit School District No. 308:
4.000%, 02/01/2030
(Callable 02/01/2025) (Insured by BAM)	$	2,550,000	$	2,812,752
4.750%, 10/01/2031 (Callable 10/01/2023)		1,000,000		1,092,150
Knox & Warren Counties Community
Unit School District No. 205:
6.000%, 01/01/2030 (Callable 01/01/2021)		285,000		285,000
2.250%, 12/01/2033
(Callable 12/01/2027) (Insured by BAM)		2,215,000		2,243,153
4.000%, 01/01/2034
(Callable 01/01/2028) (Insured by BAM)		855,000		987,380
4.000%, 01/01/2036
(Callable 01/01/2028) (Insured by BAM)		920,000		1,058,165
6.125%, 01/01/2036 (Callable 01/01/2021)		1,400,000		1,400,000
Lake County Community Unit School District No. 187,
4.000%, 01/01/2035
(Callable 01/01/2027) (Insured by BAM)		1,190,000		1,328,266
Macon County School District No. 61,
4.000%, 01/01/2040
(Callable 01/01/2027) (Insured by AGM)		1,420,000		1,608,193
Macoupin, Sangaman & Montgomery Government Bonds,
4.250%, 12/01/2032
(Callable 12/01/2023) (Insured by AGM)		685,000		742,903
Medinah Park District,
4.250%, 01/01/2028 (Callable 01/01/2024)		190,000		206,961
Metropolitan Pier & Exposition Authority:
5.500%, 12/15/2023 (ETM) (Insured by NATL)		10,000		10,231
5.500%, 12/15/2023 (Insured by NATL)		90,000		97,311
5.700%, 06/15/2025
(Callable 06/15/2022) (Insured by NATL)(7)		50,000		53,144
0.000%, 06/15/2029 (Insured by NATL)		1,700,000		1,430,074
Metropolitan Water Reclamation
District of Greater Chicago:
5.000%, 12/01/2031 (Callable 12/01/2021)		1,010,000		1,051,945
5.000%, 12/01/2034 (Callable 12/01/2026)		1,500,000		1,841,280
Ogle & Winnebago Counties Community
Unit School District No. 223:
5.000%, 12/01/2023 (Insured by BAM)		415,000		465,999
5.000%, 12/01/2024 (Insured by BAM)		100,000		115,953
Peoria City School District No. 150,
5.000%, 01/01/2026 (Insured by BAM)		330,000		400,752
Peoria County Community Unit School District No. 323,
4.250%, 04/01/2032 (Callable 04/01/2022)		415,000		430,094

The accompanying notes are an integral part of these financial statements.

Page 395

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Richland County Community Unit School District No. 1:
5.000%, 12/01/2030
(Callable 12/01/2024) (Insured by AGM)	$	155,000	$	180,378
4.000%, 12/01/2033
(Callable 12/01/2024) (Insured by AGM)		1,750,000		1,934,170
Shelby Christian Macon Counties
Community School District No. 21,
4.000%, 12/01/2027
(Callable 12/01/2023) (Insured by AGM)		155,000		168,603
St. Clair County Community Consolidated School District,
0.000%, 12/01/2021		200,000		198,578
St. Clair County Community Unit School District No. 187,
4.000%, 01/01/2028 (Insured by AGM)		175,000		205,825
State of Illinois:
4.875%, 05/01/2021		1,000,000		1,012,480
5.000%, 01/01/2022 (Callable 02/01/2021)		220,000		220,623
6.000%, 06/15/2024 (Insured by NATL)		100,000		115,108
5.000%, 06/15/2027 (Callable 06/15/2021)		1,500,000		1,522,305
6.000%, 06/15/2027 (Insured by NATL)		300,000		374,976
5.250%, 07/01/2028 (Callable 07/01/2023)		175,000		187,428
5.500%, 07/01/2033 (Callable 07/01/2023)		410,000		438,097
4.000%, 06/15/2038
(Callable 06/15/2028) (Insured by BAM)		2,500,000		2,751,475
Tazewell County School District No. 51,
9.000%, 12/01/2026 (Insured by NATL)		1,060,000		1,548,893
Tender Option Bond Trust,
0.310%, 12/01/2050
(Optional Put Date 01/07/2021)(1)(3)		3,255,000		3,255,000
University of Illinois,
5.000%, 10/01/2021		700,000		721,980
Upper Illinois River Valley Development Authority:
5.000%, 12/01/2023		600,000		671,892
5.000%, 12/01/2024		585,000		677,103
4.000%, 01/01/2031 (Callable 01/01/2027)(3)		170,000		175,205
Village of Crestwood IL:
4.000%, 12/15/2021 (Insured by BAM)		250,000		257,993
4.500%, 12/15/2026
(Callable 12/15/2022) (Insured by BAM)		200,000		214,270
4.000%, 12/15/2027
(Callable 12/15/2025) (Insured by BAM)		330,000		372,101
Village of Franklin Park IL:
5.000%, 04/01/2023 (Insured by BAM)		460,000		505,775
4.000%, 07/01/2029
(Callable 07/01/2025) (Insured by AGM)		450,000		508,644

The accompanying notes are an integral part of these financial statements.

Page 396

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Village of River Grove IL:
4.000%, 12/15/2027
(Callable 12/15/2026) (Insured by BAM)	$	135,000	$	154,740
4.000%, 12/15/2028
(Callable 12/15/2026) (Insured by BAM)		205,000		233,704
Village of Stone Park IL:
4.750%, 02/01/2029
(Callable 02/01/2023) (Insured by BAM)		230,000		242,581
4.750%, 02/01/2031
(Callable 02/01/2023) (Insured by BAM)		310,000		325,925
4.750%, 02/01/2032
(Callable 02/01/2023) (Insured by BAM)		275,000		288,747
4.750%, 02/01/2033
(Callable 02/01/2023) (Insured by BAM)		190,000		199,173
5.000%, 02/01/2035
(Callable 02/01/2029) (Insured by BAM)		300,000		356,448
5.000%, 02/01/2036
(Callable 02/01/2029) (Insured by BAM)		225,000		266,519
4.000%, 02/01/2037
(Callable 02/01/2029) (Insured by BAM)		185,000		205,023
4.000%, 02/01/2038
(Callable 02/01/2029) (Insured by BAM)		150,000		165,816
Will County Community High School District No. 210:
0.000%, 01/01/2023 (Insured by AGM)		140,000		136,905
0.000%, 01/01/2026 (Insured by AGM)		265,000		247,942
0.000%, 01/01/2027 (Insured by BAM)		1,120,000		1,024,150
0.000%, 01/01/2027 (Insured by AGM)		115,000		105,158
0.000%, 01/01/2028 (Insured by BAM)		1,140,000		1,015,580
0.000%, 01/01/2028 (Insured by AGM)		180,000		160,355
0.000%, 01/01/2028		40,000		33,254
0.000%, 01/01/2029		40,000		31,979
0.000%, 01/01/2033 (Insured by BAM)		400,000		305,384
4.000%, 01/01/2034
(Callable 01/01/2029) (Insured by AGM)		400,000		449,188
Will County Community Unit School District No. 201-U:
4.000%, 01/01/2033
(Callable 01/01/2028) (Insured by AGM)		245,000		280,179
4.000%, 01/01/2034
(Callable 01/01/2028) (Insured by AGM)		785,000		892,647
4.000%, 01/01/2035
(Callable 01/01/2028) (Insured by AGM)		480,000		544,810
Will County Township High School District No. 204:
5.000%, 01/01/2025		125,000		143,816
6.250%, 01/01/2031 (Callable 01/01/2021)		300,000		300,000
Total Illinois
(Cost $86,991,777)				92,633,963		10.7	%

The accompanying notes are an integral part of these financial statements.

Page 397

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Indiana
Bloomington Redevelopment District:
5.000%, 02/01/2025	$	325,000	$	380,415
5.000%, 08/01/2025		335,000		398,868
5.250%, 08/01/2036 (Callable 08/01/2029)		1,450,000		1,840,717
Carmel Redevelopment Authority,
4.000%, 08/01/2033 (Pre-refunded to 08/01/2022)		250,000		264,905
City of Jeffersonville IN,
5.000%, 01/01/2030
(Callable 01/01/2028) (Insured by BAM)		325,000		416,244
City of Lawrence IN,
5.000%, 01/01/2027 (Insured by BAM)		385,000		479,390
Evansville Park District:
5.000%, 08/15/2035
(Callable 02/15/2028) (Insured by BAM)		150,000		189,159
5.000%, 08/15/2036
(Callable 02/15/2028) (Insured by BAM)		1,335,000		1,676,693
Franklin Township-Marion County
Multiple School Building Corp.,
5.000%, 01/15/2035
(Callable 01/15/2023) (Insured by ST AID)		505,000		544,304
Hammond Multi-School Building Corp.,
4.500%, 07/15/2026
(Callable 01/15/2024) (Insured by ST AID)		625,000		695,069
Hammond Sanitary District:
5.000%, 07/15/2026 (Insured by BAM)		610,000		751,300
5.000%, 01/15/2028
(Callable 07/15/2027) (Insured by BAM)		295,000		369,715
Indiana Bond Bank:
0.730%, 10/15/2022
(SIFMA Municipal Swap Index + 0.660%)(2)		125,000		125,010
1.129%, 10/15/2022
(3 Month LIBOR USD + 0.970%)(2)		510,000		510,076
Indiana Development Finance Authority,
0.110%, 01/01/2027(1)		2,160,000		2,160,000
Indiana Finance Authority:
5.000%, 10/01/2023		180,000		195,197
5.000%, 10/01/2032 (Callable 10/01/2023)		3,520,000		3,608,915
4.000%, 05/01/2035 (Pre-refunded to 05/01/2023)		290,000		315,378
3.750%, 10/01/2037 (Callable 10/01/2023)		215,000		195,459
3.750%, 10/01/2042 (Callable 10/01/2023)		140,000		121,485
5.500%, 08/15/2045 (Callable 02/01/2021)		225,000		225,448
Indiana Health & Educational
Facilities Financing Authority:
1.750%, 11/15/2031 (Pre-refunded to 11/02/2021)(1)		10,000		10,120

The accompanying notes are an integral part of these financial statements.

Page 398

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Indiana Health & Educational
Facilities Financing Authority: (cont.)
1.750%, 11/15/2031
(Mandatory Tender Date 11/02/2021)(1)	$	715,000	$	723,652
Indiana Municipal Power Agency,
5.000%, 01/01/2032 (Callable 01/01/2025)		1,000,000		1,159,900
Indiana University,
4.000%, 08/01/2035 (Callable 08/01/2027)		80,000		93,772
Indianapolis Local Public Improvement Bond Bank:
1.400%, 06/01/2021 (Callable 03/01/2021)		1,600,000		1,600,032
5.000%, 01/01/2033 (Pre-refunded to 01/01/2025)		500,000		594,645
IPS Multi-School Building Corp.,
5.000%, 07/15/2026
(Callable 01/15/2025) (Insured by ST AID)		925,000		1,092,878
Kankakee Valley Middle School Building Corp.,
5.000%, 01/15/2029 (Insured by ST AID)		1,000,000		1,323,620
Loogootee School Building Corp.,
4.000%, 07/15/2026 (Insured by ST AID)		135,000		158,487
Munster School Building Corp.:
5.000%, 07/15/2021 (Insured by ST AID)		130,000		133,072
4.000%, 07/15/2024 (Insured by ST AID)		170,000		189,292
North Montgomery High School Building Corp.,
5.000%, 07/15/2033
(Callable 07/15/2026) (Insured by ST AID)		165,000		199,893
Shelbyville Central Renovation School Building Corp.,
5.000%, 01/15/2029
(Callable 07/15/2026) (Insured by ST AID)		220,000		271,269
Taylor Community School Building Corp.,
0.000%, 07/15/2029
(Callable 07/15/2025) (Insured by ST AID)		360,000		293,875
Tipton County Jail Building Corp.,
5.000%, 01/15/2027 (Insured by ST AID)		245,000		305,373
Tri-Creek 2002 High School Building Corp.,
4.000%, 07/15/2039
(Callable 07/15/2028) (Insured by ST AID)		345,000		399,165
Westfield High School Building Corp.:
5.000%, 01/15/2029
(Callable 01/15/2026) (Insured by ST AID)		250,000		302,942
5.000%, 01/15/2030
(Callable 01/15/2026) (Insured by ST AID)		300,000		362,040
5.000%, 07/15/2031
(Callable 01/15/2026) (Insured by ST AID)		150,000		180,581
Total Indiana
(Cost $23,803,687)				24,858,355		2.9	%

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Iowa
City of Cedar Rapids IA,
0.158%, 08/15/2029 (Insured by AMBAC)(1)(5)	$	3,080,000	$	2,964,500
City of Coralville IA,
4.000%, 05/01/2022		100,000		100,612
City of Greenfield IA,
4.000%, 09/01/2036
(Callable 09/01/2026) (Insured by AGM)		200,000		233,248
County of Carroll IA,
5.000%, 06/01/2035 (Callable 06/01/2027)		645,000		791,454
Iowa Finance Authority:
4.000%, 07/01/2047
(Callable 07/01/2028) (Insured by GNMA)		1,900,000		2,171,320
2.875%, 05/15/2049 (Callable 01/21/2021)		450,000		454,351
Iowa Higher Education Loan Authority,
3.750%, 05/19/2021		2,000,000		2,010,860
Southern Iowa Rural Water Association,
3.000%, 12/01/2032
(Callable 12/01/2028) (Insured by AGM)		1,030,000		1,156,453
Total Iowa
(Cost $9,659,072)				9,882,798		1.1	%
Kansas
City of Derby KS,
3.900%, 03/01/2037 (Callable 03/01/2025)		525,000		532,633
City of Hutchinson KS:
4.000%, 12/01/2021		360,000		365,969
5.000%, 12/01/2022		140,000		147,448
City of Wichita KS,
3.000%, 09/01/2023 (Callable 09/01/2022)		220,000		224,640
Kansas Independent College Finance Authority,
5.000%, 05/01/2021		1,600,000		1,612,160
Total Kansas
(Cost $2,827,882)				2,882,850		0.3	%
Kentucky
Kentucky Economic Development Finance Authority:
0.000%, 10/01/2025 (Insured by NATL)		420,000		394,922
0.000%, 10/01/2026 (Insured by NATL)		475,000		437,413
0.000%, 10/01/2027 (Insured by NATL)		455,000		408,594
0.000%, 10/01/2028 (Insured by NATL)		615,000		537,172
5.250%, 08/15/2046 (Pre-refunded to 08/15/2021)		790,000		814,253
Kentucky Public Energy Authority:
4.000%, 08/01/2027		250,000		296,993
4.000%, 01/01/2049 (Callable 10/01/2024)
(Mandatory Tender Date 01/01/2025)(1)		675,000		758,754

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Kentucky Public Energy Authority: (cont.)
1.396%, 12/01/2049 (1 Month LIBOR USD + 1.300%)
(Callable 03/01/2025)
(Mandatory Tender Date 06/01/2025)(2)	$	2,000,000	$	2,029,280
4.000%, 12/01/2049 (Callable 03/01/2025)
(Mandatory Tender Date 06/01/2025)(1)		2,865,000		3,263,808
4.000%, 12/01/2050 (Callable 03/01/2026)
(Mandatory Tender Date 06/01/2026)(1)		490,000		570,311
Paducah Electric Plant Board,
5.000%, 10/01/2032 (Callable 10/01/2026)
(Insured by AGM)		1,000,000		1,196,440
Total Kentucky
(Cost $9,828,094)				10,707,940		1.2	%
Louisiana
City of Shreveport LA,
5.000%, 08/01/2023 (Insured by BAM)		350,000		387,342
Louisiana Housing Corp.,
4.500%, 12/01/2047 (Callable 12/01/2027)		170,000		189,831
Louisiana Local Government Environmental
Facilities & Community Development Authority:
5.000%, 10/01/2023 (Insured by BAM)		200,000		222,048
5.000%, 10/01/2024 (Insured by BAM)		100,000		115,089
Louisiana Public Facilities Authority,
0.000%, 10/01/2024 (7)		125,000		118,776
Louisiana Stadium & Exposition District,
5.000%, 07/03/2023 (Callable 01/01/2023)		1,000,000		1,078,390
Louisiana State University &
Agricultural & Mechanical College:
5.000%, 07/01/2030
(Callable 07/01/2026) (Insured by BAM)		380,000		453,499
4.000%, 07/01/2032
(Callable 07/01/2026) (Insured by BAM)		485,000		545,344
St. Tammany Parish Wide School District No. 12:
4.000%, 03/01/2035 (Callable 03/01/2027)		100,000		115,771
4.000%, 03/01/2036 (Callable 03/01/2027)		115,000		132,804
Terrebonne Parish Consolidated Government,
0.000%, 04/01/2034 (Insured by AGM)		715,000		550,786
Total Louisiana
(Cost $3,688,396)				3,909,680		0.4	%
Maine
Maine Health & Higher Educational Facilities Authority,
4.000%, 07/01/2037 (Callable 07/01/2029)		230,000		270,749
Maine State Housing Authority:
3.500%, 11/15/2045 (Callable 05/15/2025)		120,000		126,073

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Maine State Housing Authority: (cont.)
4.000%, 11/15/2045 (Callable 11/15/2025)	$	265,000	$	280,579
3.500%, 11/15/2046 (Callable 11/15/2025)		25,000		26,116
3.500%, 11/15/2047 (Callable 11/15/2026)		620,000		664,125
4.000%, 11/15/2049 (Callable 05/15/2028)		435,000		480,358
4.000%, 11/15/2050 (Callable 05/15/2029)		990,000		1,121,987
Total Maine
(Cost $2,859,783)				2,969,987		0.3	%
Maryland
County of Baltimore MD:
3.000%, 09/01/2027 (Callable 09/01/2022)		1,000,000		1,039,580
3.000%, 09/01/2029 (Callable 09/01/2022)		1,125,000		1,163,734
Maryland Community Development Administration:
3.500%, 03/01/2050 (Callable 03/01/2029)		745,000		819,671
3.250%, 09/01/2050 (Callable 09/01/2029)		6,000,000		6,648,120
Maryland Health & Higher Educational Facilities Authority:
5.000%, 01/01/2028(6)		300,000		352,866
4.000%, 01/01/2029		980,000		1,147,609
5.000%, 01/01/2029(6)		290,000		345,271
5.000%, 01/01/2030 6)		185,000		222,829
Total Maryland
(Cost $11,643,570)				11,739,680		1.4	%
Massachusetts
Massachusetts Development Finance Agency:
5.000%, 07/01/2022 (Callable 07/01/2021)		1,000,000		1,020,500
5.000%, 10/01/2025 (Insured by AGM)		575,000		690,242
Massachusetts Housing Finance Agency:
4.000%, 12/01/2028 (Callable 06/01/2023)		1,000,000		1,064,400
4.500%, 12/01/2048 (Callable 12/01/2027)		1,780,000		1,987,121
4.000%, 06/01/2049 (Callable 12/01/2028)		940,000		1,043,757
Town of Ashburnham MA,
4.250%, 07/01/2021
(Callable 02/01/2021) (Insured by AGC)		350,000		350,966
University of Massachusetts Building Authority,
5.000%, 11/01/2039 (Callable 11/01/2024)		270,000		311,075
Total Massachusetts
(Cost $6,250,854)				6,468,061		0.7	%
Michigan
City of Detroit MI,
5.250%, 07/01/2041 (Pre-refunded to 07/01/2021)		50,000		51,253
City of Monroe MI,
4.000%, 05/01/2031 (Callable 05/01/2024)		150,000		164,895
City of Wyandotte MI,
5.000%, 10/01/2023 (Insured by BAM)		25,000		27,893

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Detroit Michigan School District,
5.000%, 05/01/2033
(Callable 05/01/2022) (Insured by Q-SBLF)	$	1,000,000	$	1,058,270
Eastern Michigan University,
4.000%, 03/01/2034
(Callable 03/01/2027) (Insured by BAM)		985,000		1,129,943
Ferris State University,
5.000%, 10/01/2026		865,000		1,055,793
Flushing Community Schools,
4.000%, 05/01/2029
(Callable 05/01/2028) (Insured by Q-SBLF)		220,000		267,087
Michigan Finance Authority:
5.000%, 12/01/2021		265,000		275,192
4.000%, 10/01/2024		650,000		684,157
5.000%, 09/01/2029		400,000		499,636
5.000%, 09/01/2030 (Callable 03/01/2030)		440,000		552,266
5.000%, 07/01/2034 (Callable 07/01/2025)		250,000		293,563
5.000%, 07/01/2036
(Callable 07/01/2024) (Insured by NATL)		500,000		565,920
5.000%, 07/01/2044 (Callable 07/01/2024)		100,000		107,681
Michigan State Building Authority,
0.170%, 10/15/2042 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		1,000,000		1,000,000
Michigan State Hospital Finance Authority,
4.000%, 11/15/2047 (Callable 11/15/2026)		510,000		578,034
Michigan State Housing Development Authority:
4.250%, 12/01/2049 (Callable 06/01/2028)		1,815,000		2,034,688
3.500%, 12/01/2050 (Callable 06/01/2029)		1,985,000		2,213,632
Pinckney Community Schools,
5.000%, 05/01/2033
(Callable 05/01/2026) (Insured by Q-SBLF)		750,000		907,042
Romeo Community School District,
5.000%, 05/01/2029
(Callable 05/01/2026) (Insured by Q-SBLF)		1,000,000		1,231,000
Roseville Community Schools,
5.000%, 05/01/2026 (Insured by Q-SBLF)		400,000		495,244
Swartz Creek Community Schools,
5.000%, 05/01/2039
(Callable 05/01/2029) (Insured by Q-SBLF)		815,000		1,041,163
Trenton Public Schools School District:
5.000%, 05/01/2029
(Callable 05/01/2028) (Insured by Q-SBLF)		135,000		176,527
5.000%, 05/01/2030
(Callable 05/01/2028) (Insured by Q-SBLF)		300,000		390,582
Wayne County Airport Authority:
5.000%, 12/01/2026		185,000		228,286
5.000%, 12/01/2031 (Callable 12/01/2027)		375,000		460,688

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Wayne-Westland Community Schools,
4.000%, 11/01/2038
(Callable 05/01/2029) (Insured by Q-SBLF)	$	500,000	$	590,005
Western Michigan University,
5.000%, 11/15/2029 (Callable 05/15/2025)		250,000		295,778
Total Michigan
(Cost $17,428,157)				18,376,218		2.1	%
Minnesota
City of Maple Grove MN:
5.000%, 05/01/2027		200,000		249,776
5.000%, 05/01/2031 (Callable 05/01/2027)		520,000		627,775
City of Minneapolis MN,
5.000%, 11/15/2034 (Callable 11/15/2025)		680,000		798,374
Housing & Redevelopment
Authority of The City of St. Paul:
5.000%, 12/01/2029		1,175,000		1,421,762
5.000%, 12/01/2030		300,000		364,854
5.000%, 12/01/2036 (Callable 12/01/2030)		1,600,000		1,890,480
Maple River Independent School District No. 2135:
4.000%, 02/01/2037
(Callable 02/01/2030) (Insured by SD CRED PROG)		970,000		1,192,479
4.000%, 02/01/2038
(Callable 02/01/2030) (Insured by SD CRED PROG)		700,000		858,123
Minnesota Housing Finance Agency:
4.375%, 07/01/2026
(Callable 07/01/2021) (Insured by GNMA)		115,000		116,795
3.600%, 07/01/2033
(Callable 01/01/2023) (Insured by GNMA)		620,000		643,312
4.000%, 01/01/2038 (Callable 01/01/2024)		565,000		604,601
3.800%, 07/01/2038
(Callable 01/01/2023) (Insured by GNMA)		200,000		207,536
0.500%, 01/01/2045
(SIFMA Municipal Swap Index + 0.430%)
(Callable 01/01/2023)
(Mandatory Tender Date 07/03/2023)
(Insured by GNMA)(2)		3,000,000		2,997,180
4.000%, 01/01/2047
(Callable 01/01/2026) (Insured by GNMA)		520,000		557,794
Plymouth Intermediate District No. 287:
4.000%, 02/01/2027		200,000		238,794
4.000%, 02/01/2028 (Callable 02/01/2027)		350,000		414,001
4.000%, 02/01/2037 (Callable 02/01/2027)		250,000		284,428
Total Minnesota
(Cost $13,002,506)				13,468,064		1.6	%

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Mississippi
Biloxi Public School District,
5.000%, 04/01/2026 (Insured by BAM)	$	500,000	$	609,365
City of Gulfport MS:
5.000%, 07/01/2024		485,000		532,850
5.000%, 07/01/2027 (Callable 07/01/2026)		500,000		570,490
City of Ridgeland MS:
3.000%, 10/01/2025		1,000,000		1,057,370
3.000%, 10/01/2026		1,100,000		1,169,080
3.000%, 10/01/2028 (Callable 10/01/2027)		690,000		729,441
3.000%, 10/01/2029 (Callable 10/01/2027)		540,000		566,287
Copiah-Lincoln Community College District,
2.500%, 09/01/2021 (Insured by MAC)		175,000		177,368
Medical Center Educational Building Corp.,
5.000%, 06/01/2042 (Callable 06/01/2027)		500,000		605,290
Mississippi Business Finance Corp.,
3.200%, 09/01/2028 (Callable 03/13/2024)		2,100,000		2,227,092
Mississippi Development Bank:
5.250%, 03/01/2034 (Callable 03/01/2028)		490,000		615,768
5.000%, 03/01/2048
(Callable 03/01/2029) (Insured by BAM)		1,000,000		1,233,070
State of Mississippi:
5.000%, 10/15/2028 (Callable 10/15/2025)		1,260,000		1,468,253
5.000%, 10/01/2032 (Callable 10/01/2027)		215,000		272,143
5.000%, 10/15/2034 (Callable 10/15/2025)		1,000,000		1,145,270
University of Southern Mississippi,
5.000%, 09/01/2035 (Callable 09/01/2026)		385,000		460,660
West Rankin Utility Authority:
5.000%, 01/01/2028
(Callable 01/01/2025) (Insured by AGM)		110,000		128,430
5.000%, 01/01/2029
(Callable 01/01/2025) (Insured by AGM)		275,000		320,477
5.000%, 01/01/2030
(Callable 01/01/2025) (Insured by AGM)		590,000		684,990
Total Mississippi
(Cost $14,029,958)				14,573,694		1.7	%
Missouri
Center School District No. 58:
4.000%, 04/15/2030 (Callable 04/15/2027)		210,000		242,685
4.000%, 04/15/2031 (Callable 04/15/2027)		220,000		253,354
Health & Educational Facilities
Authority of the State of Missouri:
5.000%, 02/01/2025 (Callable 02/01/2024)		45,000		49,984
5.000%, 09/01/2025		365,000		423,447

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Health & Educational Facilities
Authority of the State of Missouri: (cont.)
5.000%, 09/01/2026	$	410,000	$	486,002
5.000%, 09/01/2027		280,000		338,820
5.000%, 11/15/2027 (Callable 11/15/2025)		480,000		574,493
5.000%, 06/01/2031 (Callable 06/01/2024)		50,000		56,479
5.000%, 02/01/2035 (Callable 02/01/2024)		295,000		318,399
5.250%, 10/01/2041 (Pre-refunded to 10/01/2021)		100,000		103,787
Hickman Mills C-1 School District:
3.000%, 03/01/2039
(Callable 03/01/2028) (Insured by ST AID)		1,000,000		1,103,990
3.000%, 03/01/2040
(Callable 03/01/2028) (Insured by ST AID)		1,000,000		1,099,140
Industrial Development Authority of the City of St. Louis,
4.750%, 11/15/2047 (Callable 11/15/2026)		500,000		458,140
Jackson County Reorganized School District No. 7,
4.000%, 03/01/2039 (Callable 03/01/2029)		2,500,000		3,026,300
Jackson County School District No. R-IV,
6.000%, 03/01/2038
(Callable 03/01/2029) (Insured by ST AID)		1,005,000		1,393,834
Missouri Housing Development Commission:
3.700%, 11/01/2035
(Callable 05/01/2025) (Insured by GNMA)		80,000		86,453
3.950%, 11/01/2040
(Callable 05/01/2025) (Insured by GNMA)		475,000		485,968
Missouri Southern State University:
5.000%, 10/01/2028 (Insured by AGM)		100,000		122,888
5.000%, 10/01/2029 (Insured by AGM)		105,000		130,920
5.000%, 10/01/2030
(Callable 10/01/2029) (Insured by AGM)		135,000		167,454
5.000%, 10/01/2031
(Callable 10/01/2029) (Insured by AGM)		145,000		179,022
5.000%, 10/01/2032
(Callable 10/01/2029) (Insured by AGM)		155,000		190,256
4.000%, 10/01/2033
(Callable 10/01/2029) (Insured by AGM)		110,000		125,258
4.000%, 10/01/2034
(Callable 10/01/2029) (Insured by AGM)		115,000		130,679
4.000%, 10/01/2035
(Callable 10/01/2029) (Insured by AGM)		125,000		141,630
4.000%, 10/01/2036
(Callable 10/01/2029) (Insured by AGM)		150,000		169,374
4.000%, 10/01/2038
(Callable 10/01/2029) (Insured by AGM)		140,000		157,202
4.000%, 10/01/2039
(Callable 10/01/2029) (Insured by AGM)		110,000		123,253

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Move Rolla Transportation Development District,
3.750%, 06/01/2029 (Callable 06/01/2026)	$	260,000	$	276,822
Public Water Supply District No. 1,
4.000%, 07/01/2029 (Callable 07/01/2026)		145,000		167,068
St. Charles County Francis Howell R-III School District,
4.000%, 03/01/2031 (Callable 03/01/2028)		2,425,000		2,928,915
St. Louis Land Clearance for Redevelopment Authority,
3.875%, 10/01/2035 (Callable 10/01/2029)		370,000		349,846
Total Missouri
(Cost $15,383,454)				15,861,862		1.8	%
Montana
Montana Board of Housing:
3.600%, 12/01/2030 (Callable 06/01/2022)		350,000		359,972
3.750%, 12/01/2038
(Callable 12/01/2027) (Insured by FHA)		465,000		516,396
Montana Facility Finance Authority,
4.000%, 07/01/2024		150,000		162,780
Yellowstone County School District No. 8,
5.000%, 07/01/2027		225,000		286,681
Total Montana
(Cost $1,233,641)				1,325,829		0.2	%
Nebraska
Central Plains Energy Project:
5.000%, 09/01/2027 (Callable 09/01/2022)		340,000		363,844
5.000%, 09/01/2042 (Callable 09/01/2022)		585,000		626,026
5.000%, 03/01/2050 (Callable 10/01/2023)
(Mandatory Tender Date 01/01/2024)(1)		550,000		618,162
Colfax County School District No. 123,
4.000%, 12/15/2030 (Pre-refunded to 05/22/2024)		225,000		252,979
County of Douglas NE,
5.000%, 07/01/2036 (Callable 07/01/2027)		200,000		236,956
Douglas County Hospital Authority No. 2,
5.000%, 05/15/2030 (Callable 05/15/2026)		90,000		108,452
Nebraska Investment Finance Authority:
3.500%, 09/01/2036 (Callable 03/01/2025)		360,000		381,103
3.500%, 09/01/2046 (Callable 03/01/2025)		100,000		106,286
Village of Boys Town NE,
3.000%, 09/01/2028		1,975,000		2,265,779
Total Nebraska
(Cost $4,612,593)				4,959,587		0.6	%
Nevada
City of Carson City NV,
5.000%, 09/01/2033 (Callable 09/01/2027)		250,000		300,857

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
City of Las Vegas NV Special
Improvement District No. 815:
4.000%, 12/01/2021	$	100,000	$	102,422
3.000%, 12/01/2022		100,000		102,902
City of Yerington NV,
1.625%, 11/01/2023 (Callable 11/01/2022)		2,000,000		2,026,640
Clark County School District,
5.000%, 06/15/2032
(Callable 06/15/2027) (Insured by BAM)		450,000		555,799
Nevada Housing Division:
4.000%, 04/01/2049
(Callable 10/01/2028) (Insured by GNMA)		1,895,000		2,110,158
4.000%, 10/01/2049
(Callable 10/01/2028) (Insured by GNMA)		390,000		435,225
State of Nevada,
5.000%, 06/01/2033 (Callable 12/01/2023)		300,000		334,569
Washoe County School District,
5.000%, 05/01/2030 (Callable 05/01/2027)		525,000		651,389
Total Nevada
(Cost $6,390,891)				6,619,961		0.8	%
New Hampshire
New Hampshire Health and Education Facilities Authority,
3.150%, 04/01/2022 (Callable 11/01/2021)(3)		4,875,000		4,905,274
Total New Hampshire
(Cost $4,905,768)				4,905,274		0.6	%
New Jersey
Atlantic City Board of Education,
3.400%, 08/15/2027(3)		3,293,000		3,658,227
City of Atlantic City NJ,
5.000%, 03/01/2021 (Insured by BAM)		100,000		100,677
City of Newark NJ:
5.000%, 10/01/2021 (Insured by ST AID)		100,000		103,087
5.000%, 10/01/2021		200,000		206,294
City of Trenton NJ,
4.000%, 07/15/2023 (Insured by AGM)		400,000		435,232
City of Union City NJ,
5.000%, 11/01/2023 (Insured by ST AID)		440,000		485,267
New Jersey Economic Development Authority:
4.000%, 06/15/2022		775,000		814,107
5.000%, 06/15/2023 (Insured by BAM)		295,000		327,724
5.000%, 03/01/2024 (Callable 03/01/2023)		150,000		163,187
4.000%, 11/01/2027		1,100,000		1,266,144
3.125%, 07/01/2029 (Callable 07/01/2027)		90,000		90,898

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
New Jersey Health Care Facilities Financing Authority:
5.000%, 07/01/2025 (Insured by AGM)	$	150,000	$	176,595
4.000%, 07/01/2026 (Callable 07/01/2022)		1,000,000		1,050,420
5.000%, 07/01/2026
(Callable 07/01/2025) (Insured by AGM)		150,000		176,092
New Jersey Higher Education Student Assistance Authority,
2.375%, 12/01/2029 (Callable 06/01/2028)		1,525,000		1,584,993
New Jersey Housing & Mortgage Finance Agency:
1.500%, 09/01/2022
(Mandatory Tender Date 09/01/2021)(1)		575,000		579,059
4.500%, 10/01/2048 (Callable 10/01/2027)		1,295,000		1,460,164
4.750%, 10/01/2050 (Callable 04/01/2028)		445,000		506,664
3.500%, 04/01/2051 (Callable 04/01/2029)		3,500,000		3,914,260
New Jersey Transportation Trust Fund Authority:
0.000%, 12/15/2024 (Insured by BHAC)		605,000		588,332
0.000%, 12/15/2028 (Insured by BHAC)		240,000		217,433
5.000%, 06/15/2029 (Callable 06/15/2026)		775,000		909,734
4.000%, 12/15/2037
(Callable 12/15/2028) (Insured by BAM)		500,000		573,255
5.000%, 06/15/2042 (Callable 06/15/2022)		225,000		235,487
New Jersey Turnpike Authority:
5.000%, 01/01/2029 (Callable 01/01/2028)		50,000		64,085
0.851%, 01/01/2030 (1 Month LIBOR USD + 0.750%)
(Callable 07/01/2022)
(Mandatory Tender Date 01/01/2023)(2)		850,000		850,603
Newark Housing Authority,
5.000%, 01/01/2032 (Insured by NATL)		495,000		596,782
Passaic Valley Sewerage Commission,
5.750%, 12/01/2022		550,000		604,137
South Jersey Transportation Authority,
5.000%, 11/01/2041
(Callable 11/01/2030) (Insured by BAM)		1,350,000		1,725,908
State of New Jersey,
5.000%, 06/01/2025		4,000,000		4,760,720
Total New Jersey
(Cost $27,226,932)				28,225,567		3.3	%
New Mexico
New Mexico Hospital Equipment Loan Council,
4.750%, 07/01/2022		270,000		279,250
New Mexico Institute of Mining & Technology:
4.000%, 12/01/2028 (Insured by AGM)		300,000		360,345
4.000%, 12/01/2029 (Insured by AGM)		335,000		399,551
New Mexico Mortgage Finance Authority,
3.500%, 09/01/2041 (Callable 03/01/2026)		825,000		878,906

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
New Mexico State University,
4.000%, 04/01/2035 (Callable 04/01/2027)	$	520,000	$	591,588
Village of Los Ranchos de Albuquerque NM:
4.000%, 09/01/2023		100,000		107,370
4.000%, 09/01/2024		100,000		110,034
4.000%, 09/01/2025		150,000		168,946
5.000%, 09/01/2026		150,000		180,325
5.000%, 09/01/2029		225,000		286,612
5.000%, 09/01/2030		225,000		291,461
Total New Mexico
(Cost $3,564,099)				3,654,388		0.4	%
New York
Albany County Capital Resource Corp.,
3.100%, 07/01/2030		755,000		708,620
Amherst Development Corp.,
5.000%, 10/01/2032
(Callable 10/01/2027) (Insured by AGM)		240,000		292,392
BluePath TE Trust,
2.750%, 09/01/2026 (Callable 08/27/2021)(3)		796,228		816,506
City of New York NY:
5.250%, 07/01/2029 (Callable 07/01/2023)		250,000		277,500
0.010%, 10/01/2040 (Optional Put Date 01/04/2021)(1)		1,500,000		1,500,000
County of Suffolk NY,
5.000%, 05/01/2022		990,000		1,043,351
Dutchess County Local Development Corp.,
5.000%, 07/01/2027 (Callable 07/01/2026)		100,000		119,804
Geneva Development Corp.,
5.000%, 09/01/2029 (Pre-refunded to 09/01/2023)		185,000		208,454
Metropolitan Transportation Authority:
5.000%, 05/15/2021		150,000		151,574
5.000%, 09/01/2021		455,000		463,622
4.000%, 02/01/2022		800,000		816,176
5.000%, 05/15/2022		330,000		343,048
5.000%, 09/01/2022		1,750,000		1,833,755
0.646%, 11/01/2030 (1 Month LIBOR USD + 0.550%)
(Mandatory Tender Date 11/01/2022)(2)		980,000		949,199
New York City Housing Development Corp.,
0.700%, 11/01/2060 (Callable 05/01/2023)
(Mandatory Tender Date 05/01/2025)(1)		2,500,000		2,500,225
New York City Industrial Development Agency:
5.000%, 03/01/2029 (Insured by AGM)		250,000		324,532
5.000%, 03/01/2030 (Insured by AGM)		250,000		330,265
New York City Transitional Finance Authority:
5.000%, 08/01/2031 (Callable 08/01/2028)		50,000		64,583

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
New York City Transitional Finance Authority: (cont.)
5.000%, 08/01/2034 (Callable 08/01/2026)	$	650,000	$	785,746
5.000%, 08/01/2038 (Callable 08/01/2028)		1,295,000		1,631,532
5.000%, 08/01/2039 (Callable 08/01/2024)		105,000		120,476
New York City Water & Sewer System:
5.000%, 06/15/2036 (Callable 06/15/2024)		1,000,000		1,148,860
5.000%, 06/15/2036 (Callable 06/15/2024)		1,000,000		1,148,860
0.020%, 06/15/2049 (Optional Put Date 01/04/2021)(1)		600,000		600,000
New York Liberty Development Corp.,
0.570%, 10/01/2035 (Optional Put Date 01/07/2021)(1)(3)		1,000,000		1,000,000
New York State Dormitory Authority:
5.000%, 10/01/2038 (Callable 04/01/2028)		1,500,000		1,909,485
5.000%, 03/15/2044 (Callable 03/15/2024)		2,800,000		3,166,128
New York State Housing Finance Agency,
1.600%, 11/01/2024 (Callable 12/01/2021)		2,000,000		2,021,700
New York Transportation Development Corp.,
5.000%, 12/01/2033 (Callable 12/01/2030)		1,000,000		1,288,970
Onondaga Civic Development Corp.:
3.375%, 10/01/2026 (Callable 10/01/2025)		50,000		48,061
5.000%, 10/01/2040 (Callable 10/01/2025)		95,000		94,757
Port Authority of New York & New Jersey,
5.000%, 09/01/2031 (Callable 09/01/2024)		770,000		886,070
St. Lawrence County Industrial Development Agency,
5.000%, 07/01/2034 (Callable 07/01/2026)		345,000		404,902
State of New York Mortgage Agency,
3.500%, 10/01/2043 (Callable 04/01/2023)		175,000		184,307
Town of Oyster Bay NY,
3.000%, 02/01/2022		1,775,000		1,821,186
Utility Debt Securitization Authority,
5.000%, 12/15/2033 (Callable 12/15/2025)		1,175,000		1,431,808
Total New York
(Cost $31,473,947)				32,436,454		3.8	%
North Carolina
North Carolina Capital Facilities Finance Agency,
5.000%, 06/01/2022 (Insured by AGC)		150,000		157,704
North Carolina Housing Finance Agency,
4.000%, 07/01/2047 (Callable 01/01/2027)		530,000		576,555
North Carolina Turnpike Authority:
5.000%, 02/01/2024		3,000,000		3,400,140
5.000%, 01/01/2028		250,000		314,833
4.000%, 01/01/2041
(Callable 01/01/2029) (Insured by AGM)		1,000,000		1,157,210
Total North Carolina
(Cost $5,377,193)				5,606,442		0.6	%

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
North Dakota
City of Dickinson ND,
5.000%, 10/01/2025 (Callable 10/01/2021)	$	825,000	$	841,178
City of Horace ND:
1.900%, 08/01/2022 (Callable 08/01/2021)		1,000,000		1,000,790
3.000%, 05/01/2037 (Callable 05/01/2026)		2,495,000		2,584,595
City of Mandan ND,
2.750%, 09/01/2041 (Callable 02/01/2021)		875,000		875,411
City of Williston ND:
4.250%, 07/15/2025 (Callable 07/15/2022)		1,750,000		1,836,853
5.000%, 05/01/2028 (Callable 05/01/2023)		480,000		524,366
County of Burleigh ND:
4.000%, 11/01/2021		525,000		538,472
2.750%, 02/01/2022 (Callable 01/21/2021)		5,500,000		5,500,935
4.000%, 11/01/2029
(Pre-refunded to 11/01/2022) (Insured by AGM)		850,000		908,556
County of McKenzie ND:
5.000%, 08/01/2022		645,000		683,681
5.000%, 08/01/2023		1,225,000		1,343,837
Jamestown Park District,
2.900%, 07/01/2035 (Callable 01/19/2021)		1,300,000		1,300,923
North Dakota Housing Finance Agency:
3.350%, 07/01/2031 (Callable 01/01/2027)		545,000		601,664
3.000%, 07/01/2034 (Callable 07/01/2028)		100,000		109,062
3.500%, 07/01/2046 (Callable 01/01/2026)		290,000		312,063
4.000%, 01/01/2050 (Callable 07/01/2028)		980,000		1,120,816
State Board of Higher Education
of the State of North Dakota:
5.000%, 04/01/2027 (Insured by AGM)		205,000		259,188
5.000%, 04/01/2028 (Insured by AGM)		100,000		129,680
Total North Dakota
(Cost $20,063,623)				20,472,070		2.4	%
Ohio
Akron Bath Copley Joint Township Hospital District:
5.000%, 11/15/2032 (Callable 11/15/2030)		700,000		896,203
4.000%, 11/15/2033 (Callable 11/15/2030)		400,000		467,780
City of Akron OH,
4.000%, 12/01/2033 (Callable 12/01/2026)		125,000		143,424
City of Middleburg Heights OH,
5.000%, 08/01/2033 (Callable 08/01/2031)		645,000		821,033
Columbus-Franklin County Finance Authority:
3.820%, 11/15/2036 (Callable 11/15/2021)		460,000		466,702
4.000%, 11/15/2038 (Callable 05/15/2022)		335,000		343,147

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
County of Franklin OH,
0.500%, 05/15/2050
(SIFMA Municipal Swap Index + 0.430%)
(Callable 05/15/2021)
(Mandatory Tender Date 11/15/2021)(2)	$	1,000,000	$	1,000,460
County of Licking OH,
4.000%, 12/01/2028 (Pre-refunded to 12/01/2021)		250,000		258,612
County of Lorain OH:
4.000%, 12/01/2028 (Callable 12/01/2023)		180,000		197,476
5.000%, 12/01/2031 (Callable 12/01/2023)		480,000		534,725
3.000%, 12/01/2036 (Callable 12/01/2025)		400,000		430,368
4.000%, 12/01/2040 (Callable 12/01/2025)		245,000		277,095
Euclid City School District,
4.000%, 12/01/2037
(Callable 06/01/2027) (Insured by BAM)		160,000		188,184
Franklin County Convention Facilities Authority,
5.000%, 12/01/2032 (Callable 12/01/2029)		500,000		629,370
Little Miami Local School District,
5.000%, 11/01/2036
(Callable 11/01/2025) (Insured by SD CRED PROG)		1,845,000		2,201,657
Ohio Air Quality Development Authority,
2.400%, 12/01/2038 (Callable 10/01/2024)
(Mandatory Tender Date 10/01/2029)(1)		500,000		529,855
Ohio Higher Educational Facility Commission:
5.000%, 03/01/2025		690,000		731,793
5.000%, 05/01/2026		200,000		243,154
5.000%, 05/01/2027 (Callable 05/01/2026)		610,000		736,984
5.000%, 05/01/2028 (Callable 05/01/2026)		475,000		569,031
Ohio Housing Finance Agency:
3.200%, 09/01/2036
(Callable 09/01/2025) (Insured by GNMA)		875,000		931,805
4.000%, 03/01/2047
(Callable 09/01/2025) (Insured by GNMA)		215,000		230,962
Ohio Turnpike & Infrastructure Commission:
0.000%, 02/15/2034 (Callable 02/15/2031)(7)		1,920,000		2,394,528
0.000%, 02/15/2036 (Callable 02/15/2031)(7)		335,000		417,681
Port of Greater Cincinnati Development Authority:
5.000%, 04/01/2028		230,000		283,323
5.000%, 04/01/2030		230,000		290,401
State of Ohio:
5.000%, 11/15/2028 (Callable 05/15/2023)		225,000		248,646
5.000%, 11/15/2035 (Callable 11/15/2030)		605,000		749,256
4.000%, 11/15/2036 (Callable 11/15/2030)		635,000		718,877
Streetsboro City School District,
4.500%, 12/01/2044 (Callable 12/01/2026)		725,000		870,319

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Warren City School District:
4.000%, 12/01/2030
(Callable 12/01/2026) (Insured by SD CRED PROG)	$	1,215,000	$	1,416,739
4.000%, 12/01/2031
(Callable 12/01/2026) (Insured by SD CRED PROG)		695,000		803,309
4.000%, 12/01/2036
(Callable 12/01/2026) (Insured by SD CRED PROG)		460,000		522,155
Warrensville Heights City School District:
4.000%, 11/01/2035
(Callable 11/01/2024) (Insured by BAM)		200,000		218,086
4.000%, 11/01/2037
(Callable 11/01/2024) (Insured by BAM)		500,000		543,585
Total Ohio
(Cost $21,003,559)				22,306,725		2.6	%
Oklahoma
Catoosa Industrial Authority,
4.000%, 10/01/2028 (Callable 10/01/2026)		250,000		250,913
Oklahoma Development Finance Authority:
2.600%, 03/01/2024		425,000		424,354
0.250%, 08/15/2031 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		5,000,000		5,000,000
Oklahoma Housing Finance Agency:
3.300%, 03/01/2031
(Callable 03/01/2022) (Insured by GNMA)		25,000		25,105
3.000%, 09/01/2039
(Callable 03/01/2028) (Insured by GNMA)		250,000		266,640
Total Oklahoma
(Cost $5,964,743)				5,967,012		0.7	%
Oregon
Clackamas Community College District,
5.000%, 06/15/2040 (Callable 06/15/2027)(7)		475,000		579,291
Clackamas County School District No. 12,
5.000%, 06/15/2037
(Callable 06/15/2027) (Insured by SCH BD GTY)		25,000		31,008
Clatsop County School District No. 1-C,
0.000%, 06/15/2041
(Callable 06/15/2029) (Insured by SCH BD GTY)		785,000		398,937
Clatsop County School District No. 30,
0.000%, 06/15/2038
(Callable 06/15/2029) (Insured by SCH BD GTY)		425,000		248,468
Multnomah & Clackamas Counties School District No. 10JT,
0.000%, 06/15/2031
(Callable 06/15/2029) (Insured by SCH BD GTY)		100,000		83,625

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Oregon State Facilities Authority:
5.000%, 10/01/2024	$	200,000	$	231,138
5.000%, 10/01/2026		100,000		123,060
5.000%, 10/01/2027		150,000		188,753
Salem Hospital Facility Authority:
5.000%, 05/15/2033 (Callable 05/15/2026)		105,000		116,893
5.000%, 05/15/2035 (Callable 05/15/2026)		500,000		597,135
Umatilla County School District No. 6R:
0.000%, 06/15/2028
(Callable 06/15/2027) (Insured by SCH BD GTY)(7)		100,000		113,022
0.000%, 06/15/2030
(Callable 06/15/2027) (Insured by SCH BD GTY)(7)		100,000		111,753
0.000%, 06/15/2033
(Callable 06/15/2027) (Insured by SCH BD GTY)(7)		200,000		220,706
0.000%, 06/15/2035
(Callable 06/15/2027) (Insured by SCH BD GTY)(7)		540,000		591,602
Washington Clackamas & Yamhill
Counties School District No. 88J,
0.000%, 06/15/2046
(Callable 06/15/2028) (Insured by SCH BD GTY)		500,000		199,830
Total Oregon
(Cost $3,464,201)				3,835,221		0.4	%
Pennsylvania
Berks County Municipal Authority:
5.000%, 02/01/2026		1,000,000		1,110,960
5.000%, 02/01/2027		1,100,000		1,236,950
Bloomsburg PA Area School District,
4.000%, 09/01/2030
(Callable 03/01/2024) (Insured by BAM)		250,000		272,877
City of Bradford PA:
3.500%, 11/01/2032
(Callable 11/01/2025) (Insured by AGM)		1,180,000		1,244,817
3.500%, 11/01/2034
(Callable 11/01/2025) (Insured by AGM)		605,000		634,766
Commonwealth Financing Authority:
5.000%, 06/01/2022		750,000		796,972
4.000%, 06/01/2039
(Callable 06/01/2028) (Insured by AGM)		1,525,000		1,757,715
Dauphin County General Authority,
5.000%, 06/01/2029 (Callable 06/01/2026)		690,000		835,121
Delaware County Authority:
4.000%, 10/01/2021		200,000		203,004
5.000%, 10/01/2023		240,000		260,496

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Delaware Valley Regional Finance Authority:
0.976%, 09/01/2048 (1 Month LIBOR USD + 0.880%)
(Callable 09/01/2024)
(Mandatory Tender Date 09/01/2025)(2)	$	1,000,000	$	1,001,800
0.190%, 11/01/2055 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		3,500,000		3,500,000
East Hempfield Township
Industrial Development Authority,
5.000%, 07/01/2030 (Callable 07/01/2023)		700,000		707,000
Lycoming County Authority,
4.000%, 11/01/2043
(Mandatory Tender Date 05/01/2024)(1)		500,000		531,265
Mercer County Industrial Development Authority,
6.125%, 10/01/2050 (Callable 10/01/2025)(3)		3,500,000		3,603,040
Mid Valley School District:
4.000%, 03/15/2033
(Callable 03/15/2025) (Insured by BAM)		115,000		127,859
4.000%, 03/15/2034
(Callable 03/15/2025) (Insured by BAM)		650,000		720,850
4.000%, 03/15/2035
(Callable 03/15/2025) (Insured by BAM)		835,000		924,738
Montgomery County Higher
Education & Health Authority:
3.000%, 05/01/2036
(Mandatory Tender Date 05/01/2021)(1)		245,000		246,259
4.000%, 05/01/2036
(Mandatory Tender Date 05/01/2022)(1)		610,000		621,651
Montgomery County Industrial Development Authority,
5.000%, 11/15/2036 (Callable 11/15/2026)		600,000		697,002
Pennsylvania Economic Development Financing Authority,
4.000%, 11/15/2034 (Callable 11/15/2027)		1,000,000		1,161,460
Pennsylvania Higher Educational Facilities Authority,
5.000%, 07/01/2035 (Callable 07/01/2026)		300,000		301,137
Pennsylvania Housing Finance Agency:
3.500%, 10/01/2046 (Callable 10/01/2025)		305,000		321,418
4.000%, 10/01/2049 (Callable 10/01/2028)		1,780,000		1,935,003
Pennsylvania Turnpike Commission:
5.000%, 06/01/2030 (Callable 12/01/2025)		280,000		333,651
6.000%, 12/01/2030
(Callable 12/01/2027) (Insured by BAM)(7)		205,000		268,923
0.000%, 12/01/2037
(Callable 12/01/2026) (Insured by AGM)(7)		155,000		174,809
0.000%, 12/01/2037 (Callable 12/01/2026)(7)		550,000		615,807
5.000%, 12/01/2038 (Callable 12/01/2028)(7)		715,000		883,683
6.375%, 12/01/2038 (Callable 12/01/2027)(7)		745,000		983,161
0.000%, 12/01/2040 (Callable 06/01/2029)(7)		295,000		310,594

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Pittsburgh Water & Sewer Authority,
0.720%, 09/01/2040 (1 Month LIBOR USD + 0.650%)
(Callable 06/01/2023)
(Mandatory Tender Date 12/01/2023)
(Insured by AGM)(2)	$	4,000,000	$	4,009,680
Reading School District,
5.000%, 02/01/2023 (Insured by AGM)		230,000		250,762
Ridley School District,
4.000%, 09/15/2031
(Callable 03/15/2025) (Insured by ST AID)		830,000		932,381
School District of Philadelphia,
5.000%, 09/01/2023 (Insured by ST AID)		55,000		61,331
Sports & Exhibition Authority of
Pittsburgh and Allegheny County,
5.000%, 12/15/2028
(Callable 12/15/2027) (Insured by BAM)		500,000		630,910
State Public School Building Authority,
0.000%, 05/15/2027		160,000		146,682
Upper Moreland Township School District,
5.000%, 10/01/2030
(Callable 04/01/2025) (Insured by ST AID)		250,000		296,610
Westmoreland County Industrial Development Authority:
5.000%, 07/01/2029		725,000		900,276
5.000%, 07/01/2030		550,000		691,757
York Suburban School District,
4.000%, 05/01/2030
(Callable 05/01/2024) (Insured by BAM)		1,780,000		1,959,353
Total Pennsylvania
(Cost $36,914,242)				38,204,530		4.4	%
Rhode Island
Providence Public Buildings Authority,
5.125%, 06/15/2021 (Insured by AGM)		20,000		20,403
Rhode Island Commerce Corp.,
5.000%, 07/01/2033
(Callable 07/01/2028) (Insured by BAM)		950,000		1,145,111
Rhode Island Housing & Mortgage Finance Corp.,
3.500%, 10/01/2046 (Callable 04/01/2025)		55,000		56,793
Total Rhode Island
(Cost $1,105,056)				1,222,307		0.1	%
South Carolina
City of Walhalla SC,
5.000%, 06/01/2025 (Insured by BAM)		185,000		220,718
County of Florence SC,
5.000%, 11/01/2033 (Callable 11/01/2024)		250,000		284,707

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Scago Educational Facilities Corp.
for Union School District,
5.000%, 12/01/2023 (Insured by BAM)	$	500,000	$	562,370
South Carolina Jobs-Economic Development Authority:
5.000%, 05/01/2029 (Callable 05/01/2028)		1,055,000		1,331,378
4.000%, 08/15/2030 (Callable 08/15/2026)		270,000		302,001
5.250%, 08/15/2033 (Callable 08/15/2026)		2,500,000		2,967,675
0.230%, 05/01/2048 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		5,075,000		5,075,000
South Carolina State Housing
Finance & Development Authority:
3.800%, 07/01/2034
(Callable 07/01/2024) (Insured by GNMA)		1,030,000		1,063,877
3.800%, 01/01/2049 (Callable 07/01/2027)		385,000		417,540
4.000%, 07/01/2050 (Callable 07/01/2029)		2,975,000		3,398,878
South Carolina Transportation Infrastructure Bank,
0.546%, 10/01/2031 (1 Month LIBOR USD + 0.450%)
(Callable 10/01/2021)
(Mandatory Tender Date 10/01/2022)(2)		3,980,000		3,974,667
Spartanburg Regional Health Services District:
4.000%, 04/15/2036
(Callable 04/15/2030) (Insured by AGM)		445,000		531,045
4.000%, 04/15/2037
(Callable 04/15/2030) (Insured by AGM)		500,000		594,635
4.000%, 04/15/2038
(Callable 04/15/2030) (Insured by AGM)		500,000		592,935
Sumter Two School Facilities, Inc.,
5.000%, 12/01/2023 (Insured by BAM)		200,000		224,516
Total South Carolina
(Cost $20,751,297)				21,541,942		2.5	%
South Dakota
City of Rapid City SD,
4.000%, 12/01/2035 (Callable 12/01/2029)		3,260,000		3,665,577
South Dakota Board of Regents
Housing & Auxiliary Facilities System,
4.375%, 04/01/2036
(Callable 04/01/2021) (Partially Pre-refunded)		150,000		151,516
South Dakota Health & Educational Facilities Authority,
4.000%, 11/01/2040 (Callable 11/01/2025)		140,000		154,258
South Dakota Housing Development Authority:
3.375%, 05/01/2033 (Callable 05/01/2022)		350,000		358,039
4.000%, 05/01/2049 (Callable 05/01/2028)		2,320,000		2,566,570
Total South Dakota
(Cost $6,592,467)				6,895,960		0.8	%

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Tennessee
City of Clarksville TN,
5.000%, 02/01/2032 (Callable 02/01/2026)	$	1,000,000	$	1,206,900
City of Jackson TN:
5.000%, 04/01/2029 (Callable 04/01/2025)		555,000		642,229
5.000%, 04/01/2036 (Callable 04/01/2025)		1,950,000		2,216,117
City of Memphis TN:
5.000%, 12/01/2032 (Pre-refunded to 12/01/2024)		530,000		627,329
4.000%, 12/01/2033 (Callable 12/01/2026)		1,300,000		1,515,670
4.000%, 12/01/2033 (Callable 12/01/2027)		480,000		572,616
4.000%, 12/01/2034 (Callable 12/01/2026)		1,310,000		1,525,482
4.000%, 12/01/2035 (Callable 12/01/2026)		275,000		319,501
County of Warren TN,
4.000%, 06/01/2029
(Callable 06/01/2026) (Insured by AGM)		150,000		174,705
Knox County Health Educational & Housing Facility Board:
5.000%, 04/01/2022		200,000		209,214
5.000%, 01/01/2026 (Callable 01/01/2023)		145,000		157,570
Nashville & Davidson County Metropolitan Government,
3.000%, 10/01/2024		275,000		279,199
Shelby County Health Educational
& Housing Facilities Board,
4.000%, 05/01/2037 (Callable 05/01/2027)		250,000		283,532
Tennessee Energy Acquisition Corp.:
5.625%, 09/01/2026		75,000		92,482
5.000%, 02/01/2027		185,000		224,616
4.000%, 11/01/2049 (Callable 08/01/2025)
(Mandatory Tender Date 11/01/2025)(1)		785,000		901,831
Tennessee Housing Development Agency:
3.600%, 01/01/2031 (Callable 01/01/2023)		1,590,000		1,653,775
3.550%, 07/01/2039 (Callable 07/01/2024)		255,000		269,204
4.000%, 01/01/2042 (Callable 07/01/2026)		195,000		212,829
3.800%, 07/01/2043 (Callable 01/01/2022)		225,000		227,997
4.000%, 07/01/2043 (Callable 01/01/2023)		155,000		162,119
4.000%, 07/01/2045 (Callable 01/01/2025)		100,000		106,806
3.500%, 01/01/2047 (Callable 01/01/2026)		70,000		75,002
4.500%, 07/01/2049 (Callable 01/01/2028)		850,000		956,684
4.250%, 01/01/2050 (Callable 07/01/2028)		905,000		1,010,061
Total Tennessee
(Cost $15,226,655)				15,623,470		1.8	%
Texas
Arlington Higher Education Finance Corp.:
4.000%, 08/15/2028
(Callable 08/15/2026) (PSF Guaranteed)		250,000		291,073

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Arlington Higher Education Finance Corp.: (cont.)
4.000%, 08/01/2033
(Callable 08/01/2028) (PSF Guaranteed)	$	180,000	$	214,022
5.000%, 02/15/2038
(Callable 02/15/2025) (PSF Guaranteed)		295,000		336,869
Austin-Bergstrom Landhost Enterprises, Inc.,
5.000%, 10/01/2035 (Callable 10/01/2027)		1,250,000		1,362,437
Bexar County Health Facilities Development Corp.,
5.000%, 07/15/2022		160,000		166,374
Brazoria County Toll Road Authority,
0.000%, 03/01/2043 (Callable 03/01/2030)(7)		305,000		304,393
City of Brownsville TX,
4.000%, 09/01/2029
(Callable 09/01/2026) (Insured by AGM)		170,000		197,239
City of Greenville TX:
5.000%, 02/15/2034 (Callable 02/15/2024)		200,000		225,354
5.000%, 02/15/2035 (Callable 02/15/2024)		175,000		196,896
City of Houston TX,
5.500%, 12/01/2029 (ETM) (Insured by NATL)		500,000		649,690
City of Round Rock TX,
4.000%, 12/01/2024		205,000		231,617
City of San Antonio TX,
2.750%, 02/01/2048
(Mandatory Tender Date 12/01/2022)(1)		1,500,000		1,571,535
City of Tyler TX,
5.000%, 09/01/2029 (Callable 09/01/2025)		150,000		181,163
Clifton Higher Education Finance Corp.:
4.000%, 08/15/2030
(Callable 08/15/2026) (PSF Guaranteed)		700,000		813,582
4.000%, 04/01/2034
(Callable 04/01/2030) (PSF Guaranteed)		325,000		394,823
5.000%, 08/15/2034
(Callable 08/15/2026) (PSF Guaranteed)		1,000,000		1,229,540
4.000%, 04/01/2035
(Callable 04/01/2030) (PSF Guaranteed)		250,000		302,597
County of Harris TX,
5.000%, 08/15/2029 (Callable 08/15/2022)		150,000		160,447
County of Williamson TX,
5.000%, 02/15/2028 (Callable 02/15/2025)		90,000		106,935
Crane County Water District,
5.000%, 02/15/2023		250,000		273,870
Danbury Higher Education Authority, Inc.:
4.000%, 02/15/2027 (PSF Guaranteed)		200,000		235,434
4.000%, 02/15/2028
(Callable 02/15/2027) (PSF Guaranteed)		200,000		238,184

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Danbury Higher Education Authority, Inc.: (cont.)
4.000%, 02/15/2030
(Callable 02/15/2027) (PSF Guaranteed)	$	200,000	$	234,300
4.000%, 02/15/2031
(Callable 02/15/2027) (PSF Guaranteed)		200,000		233,252
5.000%, 02/15/2047
(Callable 02/15/2022) (PSF Guaranteed)		500,000		523,160
Ferris Independent School District,
5.000%, 08/15/2029
(Callable 08/15/2026) (PSF Guaranteed)		560,000		693,050
Fort Bend County Municipal Utility District No. 155,
4.000%, 09/01/2033
(Callable 09/01/2023) (Insured by AGM)		230,000		242,576
Fort Bend County Municipal Utility District No. 30,
4.000%, 09/01/2023 (Insured by BAM)		295,000		320,544
Fort Bend Independent School District,
5.000%, 08/15/2030
(Callable 08/15/2026) (PSF Guaranteed)		100,000		124,382
Grand Parkway Transportation Corp.:
0.000%, 10/01/2034 (Callable 10/01/2028)(7)		40,000		47,108
0.000%, 10/01/2036 (Callable 10/01/2028)(7)		305,000		357,722
0.000%, 10/01/2046 (Callable 10/01/2028)(7)		885,000		1,024,370
0.000%, 10/01/2047 (Callable 10/01/2028)(7)		1,630,000		1,888,111
0.000%, 10/01/2048 (Callable 10/01/2028)(7)		440,000		509,018
Harris County Cultural Education Facilities Finance Corp.,
5.000%, 12/01/2026 (Callable 12/01/2024)		100,000		117,255
Harris County Municipal Utility District No. 371,
4.000%, 09/01/2032
(Callable 09/01/2023) (Insured by BAM)		370,000		394,427
Harris County Municipal Utility District No. 500,
3.000%, 12/01/2022 (Insured by AGM)		175,000		183,628
Harris County Municipal Utility District No. 71,
4.000%, 09/01/2028
(Callable 09/01/2023) (Insured by BAM)		250,000		271,995
Harris County-Houston Sports Authority,
5.000%, 11/15/2026
(Callable 11/15/2024) (Insured by AGM)		135,000		155,093
Hunt Memorial Hospital District,
5.000%, 02/15/2030		1,015,000		1,279,874
Lake Travis Independent School District:
2.625%, 02/15/2048
(Pre-refunded to 02/15/2022) (PSF Guaranteed)(1)		25,000		25,655
2.625%, 02/15/2048
(Pre-refunded to 02/15/2022) (PSF Guaranteed)(1)		35,000		35,918

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Laredo Community College District,
5.000%, 08/01/2028
(Callable 08/01/2027) (Insured by BAM)	$	350,000	$	441,903
Leander Independent School District,
0.000%, 08/15/2040
(Callable 08/15/2024) (PSF Guaranteed)		20,000		8,859
Matagorda County Navigation District No. 1,
4.400%, 05/01/2030 (Insured by AMBAC)		925,000		1,148,119
Montgomery County Municipal Utility District No. 119:
4.000%, 04/01/2023 (Insured by BAM)		200,000		215,178
4.000%, 04/01/2024 (Insured by BAM)		200,000		221,420
Navasota Independent School District,
5.000%, 02/15/2048
(Callable 02/15/2025) (PSF Guaranteed)		2,100,000		2,440,032
New Hope Cultural Education Facilities Finance Corp.,
3.625%, 08/15/2022 (Callable 08/15/2021)(3)		135,000		135,905
North Texas Tollway Authority:
5.000%, 01/01/2024		100,000		113,813
5.000%, 01/01/2033 (Callable 01/01/2026)		675,000		804,843
5.000%, 01/01/2034 (Callable 01/01/2025)		95,000		109,461
0.000%, 09/01/2045 (Pre-refunded to 09/01/2031)(7)		40,000		60,282
Northeast Travis County Utility District:
0.000%, 09/01/2023 (Insured by BAM)		275,000		268,502
3.000%, 09/01/2027 (Insured by BAM)		170,000		191,214
Red River Education Finance Corp.,
5.000%, 06/01/2022		500,000		521,390
Rio Vista Independent School District,
4.000%, 08/15/2028
(Callable 08/15/2025) (Insured by BAM)		125,000		143,371
Rosebud-Lott Independent School District:
5.500%, 02/15/2030
(Callable 02/15/2025) (PSF Guaranteed)		100,000		120,083
5.500%, 02/15/2031
(Callable 02/15/2025) (PSF Guaranteed)		100,000		119,813
SA Energy Acquisition Public Facility Corp.,
5.500%, 08/01/2022		160,000		172,549
San Antonio Public Facilities Corp.,
4.000%, 09/15/2034 (Callable 09/15/2022)		1,370,000		1,426,376
Sedona Lakes Municipal Utility District No. 1,
4.000%, 09/01/2026
(Callable 09/01/2025) (Insured by BAM)		85,000		96,936
Southwest Houston Redevelopment Authority,
5.000%, 09/01/2027 (Insured by AGM)		250,000		307,295

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Sterling Independent School District,
3.000%, 02/15/2028
(Callable 02/15/2024) (PSF Guaranteed)	$	190,000	$	203,405
Texas Department of Housing & Community Affairs,
4.750%, 01/01/2049 (Callable 07/01/2028)		4,140,000		4,684,493
Texas Municipal Gas Acquisition & Supply Corp. I:
1.595%, 12/15/2026 (3 Month LIBOR USD + 1.450%)
(Callable 01/04/2021)(2)		3,000,000		2,952,510
6.250%, 12/15/2026		1,355,000		1,626,027
Texas Municipal Gas Acquisition & Supply Corp. III:
5.000%, 12/15/2026 (Callable 12/15/2022)		190,000		205,386
5.000%, 12/15/2028 (Callable 12/15/2022)		575,000		618,752
5.000%, 12/15/2029 (Callable 12/15/2022)		1,000,000		1,073,630
Texas Municipal Power Agency,
5.000%, 09/01/2047 (Callable 02/01/2021)		500,000		501,590
Tioga Independent School District Public Facility Corp.:
3.250%, 08/15/2027 (Callable 08/15/2024)		200,000		199,996
4.000%, 08/15/2041 (Callable 08/15/2024)		825,000		830,214
Town of Providence Village TX,
4.000%, 03/01/2025 (Insured by BAM)		105,000		118,830
Travis County Municipal Utility District No. 4,
4.000%, 09/01/2035
(Callable 09/01/2022) (Insured by AGM)		615,000		645,129
Upper Trinity Regional Water District,
5.000%, 08/01/2032
(Callable 08/01/2028) (Insured by BAM)		240,000		307,649
Viridian Municipal Management District:
4.000%, 12/01/2027
(Callable 12/01/2023) (Insured by AGM)		315,000		343,715
4.000%, 12/01/2028
(Callable 12/01/2023) (Insured by AGM)		470,000		510,439
6.000%, 12/01/2035
(Callable 12/01/2024) (Insured by BAM)		90,000		108,465
Washington County Junior College District,
5.000%, 10/01/2028
(Callable 04/01/2026) (Insured by BAM)		500,000		607,640
Wimberley Independent School District,
4.000%, 08/15/2031
(Callable 08/15/2027) (PSF Guaranteed)		330,000		393,301
Total Texas
(Cost $41,103,766)				43,344,027		5.0	%
Utah
Jordan Valley Water Conservancy District:
5.000%, 10/01/2032 (Callable 10/01/2026)		250,000		309,227
5.000%, 10/01/2033 (Callable 10/01/2026)		350,000		431,592

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Midvale Utah Redevelopment Agency,
5.000%, 05/01/2027	$	290,000	$	369,944
Salt Lake City Corp.:
5.000%, 07/01/2030 (Callable 07/01/2027)		155,000		192,936
5.000%, 07/01/2042 (Callable 07/01/2027)		2,725,000		3,307,224
South Ogden Conservation District,
4.000%, 02/01/2031
(Callable 02/01/2022) (Insured by MAC)		295,000		304,222
Timpanogos Special Service District,
4.000%, 06/01/2029 (Callable 06/01/2024)		50,000		55,056
Utah Charter School Finance Authority:
5.000%, 04/15/2027
(Callable 04/15/2026) (Insured by UT CSCE)		365,000		438,193
4.000%, 04/15/2028 (Insured by UT CSCE)		210,000		249,091
5.000%, 04/15/2028
(Callable 04/15/2026) (Insured by UT CSCE)		720,000		860,299
5.250%, 10/15/2028
(Callable 10/15/2023) (Insured by UT CSCE)		400,000		447,792
4.000%, 04/15/2029 (Insured by UT CSCE)		225,000		269,384
5.000%, 10/15/2032
(Callable 10/15/2027) (Insured by UT CSCE)		285,000		345,446
5.000%, 10/15/2036
(Callable 04/15/2023) (Insured by UT CSCE)		700,000		756,546
5.000%, 04/15/2037
(Callable 04/15/2026) (Insured by UT CSCE)		520,000		602,540
5.000%, 10/15/2043
(Callable 10/15/2023) (Insured by UT CSCE)		2,250,000		2,459,205
5.000%, 10/15/2043
(Callable 10/15/2027) (Insured by UT CSCE)		1,000,000		1,182,170
Utah Housing Corp.,
4.000%, 01/01/2045
(Callable 01/01/2026) (Insured by FHA)		245,000		264,223
Utah Infrastructure Agency:
5.000%, 10/15/2026		140,000		171,837
5.000%, 10/15/2027		125,000		156,225
Utah Transit Authority,
5.000%, 12/15/2029 (Callable 06/15/2028)		75,000		95,673
Total Utah
(Cost $12,698,687)				13,268,825		1.5	%
Vermont
City of Burlington VT,
5.000%, 07/01/2028 (Callable 07/01/2027)		275,000		346,093
Vermont Educational & Health Buildings Financing Agency,
5.000%, 12/01/2035 (Callable 06/01/2026)		710,000		850,502

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Vermont Housing Finance Agency,
3.650%, 11/01/2032 (Callable 11/01/2024)	$	120,000	$	128,484
Vermont Public Power Supply Authority:
5.000%, 07/01/2027		660,000		821,951
5.000%, 07/01/2028 (Callable 07/01/2027)		500,000		618,945
Winooski School District,
1.250%, 10/15/2021		3,500,000		3,511,690
Total Vermont
(Cost $6,169,001)				6,277,665		0.7	%
Virginia
City of Petersburg VA,
4.000%, 11/01/2025
(Callable 11/01/2022) (Insured by ST AID)		290,000		301,675
Salem Economic Development Authority,
5.000%, 04/01/2021		250,000		251,933
Virginia Housing Development Authority,
3.450%, 04/01/2038 (Callable 10/01/2022)		3,000,000		3,094,620
Total Virginia
(Cost $3,584,982)				3,648,228		0.4	%
Washington
Clark & Skamania Counties School District No. 112-6,
5.000%, 12/01/2031
(Callable 06/01/2025) (Insured by SCH BD GTY)		160,000		191,818
Energy Northwest,
5.000%, 07/01/2030 (Callable 07/01/2028)		600,000		784,854
King County Housing Authority,
5.000%, 12/01/2030 (Callable 12/01/2026)		1,125,000		1,347,480
King County Public Hospital District No. 1,
5.000%, 12/01/2029 (Callable 12/01/2028)		1,050,000		1,290,030
Lewis County School District No. 302,
5.000%, 12/01/2031
(Callable 06/01/2025) (Insured by SCH BD GTY)		235,000		280,484
Pacific County School District No. 118,
4.000%, 12/01/2025 (Insured by SCH BD GTY)		215,000		250,552
Pend Oreille County Public Utility District No. 1:
5.000%, 01/01/2022		300,000		309,666
5.000%, 01/01/2038 (Callable 01/01/2029)		2,500,000		2,877,075
State of Washington:
5.000%, 02/01/2038 (Callable 02/01/2024)		645,000		727,657
5.000%, 07/01/2042 (Callable 07/01/2028)		1,330,000		1,673,738
4.000%, 08/01/2042 (Callable 08/01/2022)		345,000		360,760
Washington Biomedical Research Properties 3.2,
5.000%, 01/01/2037 (Callable 07/01/2025)		100,000		118,148

The accompanying notes are an integral part of these financial statements.

Page 425

Baird Core Intermediate Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Washington State Housing Finance Commission:
3.700%, 12/01/2033 (Callable 06/01/2024)	$	85,000	$	85,973
3.700%, 12/01/2034 (Callable 06/01/2025)		45,000		48,875
4.000%, 06/01/2049 (Callable 06/01/2028)		460,000		509,505
Total Washington
(Cost $10,143,663)				10,856,615		1.3	%
Wisconsin
Appleton Redevelopment Authority,
0.200%, 06/01/2036 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		1,700,000		1,700,000
Milwaukee Redevelopment Authority:
5.000%, 11/15/2030 (Callable 11/15/2026)		225,000		276,460
5.000%, 11/15/2032 (Callable 11/15/2026)		175,000		214,130
Public Finance Authority:
4.000%, 01/01/2021		435,000		435,000
5.000%, 01/01/2021		150,000		150,000
5.000%, 01/01/2022		150,000		156,375
5.000%, 01/01/2023		190,000		206,346
5.000%, 10/01/2023(3)		2,125,000		2,257,749
5.000%, 01/01/2024		230,000		259,348
5.000%, 10/01/2024(3)		875,000		947,056
5.000%, 01/01/2025		260,000		303,456
3.000%, 04/01/2025(3)		425,000		433,649
5.000%, 06/15/2025		220,000		254,131
3.000%, 03/01/2026 (Callable 03/01/2021)(3)		1,250,000		1,251,175
0.000%, 09/01/2028 (Pre-refunded to 09/01/2026)		100,000		88,720
5.000%, 03/01/2031 (Callable 03/01/2026)		440,000		517,911
5.000%, 10/01/2044 (Callable 04/01/2029)		1,750,000		2,135,087
Southeast Wisconsin Professional Baseball Park District,
0.000%, 12/15/2023 (ETM) (Insured by NATL)		25,000		24,657
Tender Option Bond Trust,
0.320%, 05/01/2054 (Callable 02/01/2021)
(Optional Put Date 01/07/2021)(1)(3)		498,000		498,000
University of Wisconsin Hospitals & Clinics,
5.000%, 04/01/2038 (Pre-refunded to 04/01/2023)		830,000		917,565
Village of Mount Pleasant WI:
5.000%, 04/01/2036 (Callable 04/01/2028)		1,000,000		1,242,900
4.000%, 04/01/2037 (Callable 04/01/2028)		1,000,000		1,154,810
5.000%, 04/01/2048 (Callable 04/01/2028)		1,435,000		1,729,907
Wisconsin Center District:
5.250%, 12/15/2023 (ETM) (Insured by AGM)		125,000		135,814
5.250%, 12/15/2023 (Insured by AGM)		75,000		83,674
0.000%, 12/15/2027		525,000		479,966
0.000%, 12/15/2027 (Insured by NATL)		220,000		198,374

The accompanying notes are an integral part of these financial statements.

Page 426

Baird Core Intermediate Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Wisconsin Center District: (cont.)
5.000%, 12/15/2027 (Callable 06/15/2026)	$	500,000	$	614,680
5.250%, 12/15/2027 (ETM) (Insured by AGM)		70,000		87,408
5.250%, 12/15/2027 (Insured by AGM)		195,000		242,699
0.000%, 12/15/2028 (Insured by AGM)		1,025,000		914,074
0.000%, 12/15/2028		255,000		227,404
5.000%, 12/15/2028 (Callable 06/15/2026)		345,000		423,508
0.000%, 12/15/2029		315,000		273,177
0.000%, 12/15/2030		460,000		388,286
0.000%, 12/15/2030 (Insured by AGM)		645,000		544,444
5.000%, 12/15/2030 (Callable 12/15/2022)		395,000		418,953
5.000%, 12/15/2030 (Callable 06/15/2026)		500,000		611,385
5.000%, 12/15/2031 (Callable 06/15/2026)		300,000		366,294
0.000%, 12/15/2037
(Callable 06/15/2026) (Insured by BAM)		1,980,000		1,141,094
Wisconsin Health & Educational Facilities Authority:
5.000%, 03/01/2021		150,000		150,723
5.000%, 03/01/2022		125,000		129,551
5.000%, 11/01/2022		120,000		124,480
5.000%, 07/01/2023		165,000		183,130
5.000%, 11/01/2023		125,000		131,850
5.000%, 07/01/2024		250,000		287,780
5.000%, 11/01/2024		155,000		166,051
4.000%, 09/15/2025 (Callable 09/15/2023)		225,000		236,077
5.000%, 11/01/2025		245,000		265,805
5.000%, 07/01/2026 (Callable 07/01/2024)		50,000		57,447
2.250%, 11/01/2026 (Callable 11/01/2021)		750,000		749,992
5.000%, 08/15/2028 (Callable 08/15/2023)		1,000,000		1,103,010
5.000%, 12/01/2028 (Callable 11/01/2026)		45,000		55,291
5.000%, 08/15/2029 (Callable 08/15/2027)		170,000		214,326
5.000%, 10/01/2029		515,000		678,991
5.000%, 12/15/2030 (Callable 12/15/2024)		480,000		553,637
5.000%, 02/15/2032 (Callable 02/15/2022)		670,000		697,175
5.000%, 04/01/2032 (Callable 10/01/2022)		290,000		311,092
4.375%, 06/01/2039 (Callable 06/01/2022)		175,000		180,630
5.000%, 08/15/2039 (Callable 08/15/2024)		1,400,000		1,581,300
5.250%, 10/15/2039 (Callable 10/15/2021)		460,000		472,912
4.000%, 11/15/2039 (Callable 05/15/2026)		500,000		568,785
5.000%, 11/15/2044 (Callable 11/15/2022)		330,000		349,269
5.000%, 12/15/2044 (Callable 12/15/2024)		500,000		562,725
5.000%, 02/15/2051 (Callable 08/15/2026)
(Mandatory Tender Date 02/15/2027)(1)		700,000		849,107
5.000%, 02/15/2052 (Callable 08/15/2024)
(Mandatory Tender Date 02/15/2025)(1)		2,410,000		2,772,705

The accompanying notes are an integral part of these financial statements.

Page 427

Baird Core Intermediate Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Wisconsin Housing & Economic Development Authority:
4.000%, 03/01/2048
(Callable 03/01/2027) (Insured by FNMA)	$	1,445,000	$	1,559,834
4.250%, 03/01/2049 (Callable 09/01/2028)		1,820,000		2,039,310
Total Wisconsin
(Cost $39,866,956)				41,338,651		4.8	%
Wyoming
Wyoming Community Development Authority:
3.000%, 12/01/2044 (Callable 06/01/2024)		70,000		72,636
4.000%, 12/01/2048 (Callable 06/01/2028)		1,785,000		1,972,318
Total Wyoming
(Cost $1,957,112)				2,044,954		0.2	%
Total Long-Term Investments
(Cost $815,001,598)				850,456,128		98.3	%
Short-Term Investment
	Shares
Money Market Mutual Fund
Federated Hermes Institutional Tax-Free
Cash Trust, Premier Shares, 0.01%(4)		548,957		548,957
Total Short-Term Investment
(Cost $548,957)				548,957		0.1	%
Total Investments
(Cost $815,550,555)				851,005,085		98.4	%
Other Assets in Excess of Liabilities				13,446,104		1.6	%
TOTAL NET ASSETS			$	864,451,189		100.0	%

Notes to Schedule of Investments

AGC – Assured Guaranty Corp.

AGM – Assured Guaranty Municipal

AMBAC – Ambac Assurance Corp.

BAM – Build America Mutual Assurance Co.

BHAC – Berkshire Hathaway Assurance Corp.

FHA – Federal Housing Administration

FNMA – Federal National Mortgage Association

GNMA – Government National Mortgage Association

MAC – Municipal Assurance Corp.

NATL – National Public Finance Guarantee Corp.

Q-SBLF – Qualified School Building Loan Fund

SCH BD GTY – School Board Guaranty

SD CRED PROG – State Credit Enhancement Program

ST AID – State Aid Intercept/Withholding

UT CSCE – Utah Charter School Credit Enhancement Program

The accompanying notes are an integral part of these financial statements.

Page 428

Baird Core Intermediate Municipal Bond Fund

Schedule of Investments, December 31, 2020

Notes to Schedule of Investments (cont.)

ETM – Escrowed to Maturity

LIBOR – London Inter-bank Offered Rate

PSF – Permanent School Fund

SIFMA – Securities Industry and Financial Markets Association

(1)	Variable rate security. The rate reported is the rate in effect as of December 31, 2020.
(2)	Variable rate security based on a reference index and spread. The rate reported is the rate in effect as of December 31, 2020.
(3)	Security issued under Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program. Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers. At December 31, 2020, the value of these securities total $48,599,022, which represents 5.62% of total net assets.
(4)	Seven-day yield.
(5)	Auction rate security. An auction rate security is a debt instrument with a long nominal maturity for which the interest rate is regularly reset through a Dutch auction. The rate presented is either the rate set through the auction or the maximum interest rate provided for in the security issuance provision.
(6)	Security or a portion of the security purchased on a when-issued or delayed delivery basis.
(7)	Step-up bond; the interest rate shown is the rate in effect as of December 31, 2020.

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The accompanying notes are an integral part of these financial statements.

Page 429

Baird Core Intermediate Municipal Bond Fund

Summary of Fair Value Exposure at December 31, 2020 (cont.)

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Long-Term Investments
Municipal Bonds	$	—	$	850,456,128	$	—	$	850,456,128
Total Long-Term Investments		—		850,456,128		—		850,456,128
Short-Term Investment
Money Market Mutual Fund		548,957		—		—		548,957
Total Short-Term Investment		548,957		—		—		548,957
Total Investments	$	548,957	$	850,456,128	$	—	$	851,005,085

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 430

Baird Municipal Bond Fund

December 31, 2020 (Unaudited)

The Baird Municipal Bond Fund seeks a high level of current income that is exempt from federal income tax and is consistent with the preservation of capital.

The coronavirus (COVID-19) challenges of 2020 were unexpected and unprecedented, but so was the speed and magnitude of the monetary and fiscal responses. The result was a year of significant volatility, yet a rewarding one for Fund investors who stayed the course. Over the full year, tax-exempt rates fell sharply across the curve with short rates falling 93bps and long yields declining 68bps, steepening the curve. As the year began, no one could have known the challenges that would soon be faced. Municipal funds were benefiting from a record streak of weekly inflows, state and local tax revenues were generally rising with the economy in its eleventh year of expansion and many municipalities were adding to an already healthy level of reserves. News broke in January of COVID-19 in the State of Washington; by the end of February, seven states had confirmed cases and it was spreading rapidly. Trading activity in the municipal market initially froze as the lockdowns began, then a torrent of selling was unleashed and a liquidity crisis quickly emerged. The selling and lack of dealer support for the market drove tax-exempt yields to record highs relative to comparable maturity Treasuries. Never had a U.S. economic shock been so swift, deep and broad, affecting so many municipalities. Investors were questioning the ability of municipalities to withstand this crisis and meet their obligations. On March 27th, President Trump signed the $2.2 trillion CARES Act which, along with other measures, offered substantial aid to nearly every sector of the municipal market. In addition, the establishment of the Municipal Liquidity Facility (MLF), which, for the first time ever, allowed the Fed to lend directly to states and other select municipalities, offered investors the psychological support they were looking for. As the policymakers acted, AAA-rated municipal yields peaked on March 20th and opportunistic investors began to emerge, looking to capitalize on the incredible undervaluation that had been created in the downdraft. From a credit perspective, the further in time we moved away from the initial economic shutdowns, the better the news became on tax revenues.

During 2020, the Fund’s Institutional Class Shares generated strong absolute and relative returns and outperformed its benchmark by 474 basis points net of fees.

The primary factors contributing to the Fund’s absolute and relative performance in 2020 include:

Contributors to Performance

• Security selection

• Credit sector – overweight to this sector and added to lower-quality issues as valuations became more attractive

• Curve – favorable structure relative to benchmark

Detractors from Performance

• The relative price differences between pricing services used by the Fund (ICE) and its benchmark (BVAL)

• Sector – weighting in Education and Housing

Although the COVID-19 vaccinations have begun, we expect the economic impact of COVID-19 to linger well into 2021, particularly as it relates to travel and entertainment. Yet, with the massive fiscal stimulus that is already in the pipeline, and perhaps more coming now that the Democratic Party has full, albeit narrow, control of Washington, above-average economic growth is very likely this year.  This should boost state and local tax revenues helping municipalities recover from the pandemic-induced decline. With short-term rates anchored by the Fed, a steeper yield curve is likely which provides the opportunity for investors to capture the roll-down benefit as bonds age along a relatively steep curve. We expect the roll-down return to be an important component of total return this year, along with the yield advantage the Fund enjoys above that of its benchmark. Municipal credit spreads have room to narrow further, suggesting a modest credit overweight is appropriate. Strategic positioning across market sectors and the yield curve, a continued focus on credit to identify improving trends, plus the always-important security selection process will all be important to navigate through the current environment.

Page 431

Baird Municipal Bond Fund

December 31, 2020 (Unaudited)

We expect the Fund will target a neutral duration posture relative to the benchmark with an allocation that seeks to optimize the roll-down benefit of a steep, upwardly-sloping municipal curve and its sector weightings will favor an overweight to revenue-backed issues over general obligation debt. We believe an overweight credit posture is appropriate for the Fund to benefit from further economic recovery. We also believe our continued focus on selecting investments with strong fundamental tax and revenue support remains critical.

Page 432

Baird Municipal Bond Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

Quality Distribution⁽¹⁾⁽²⁾

	Net Assets	$21,901,820
	SEC 30-Day
	Yield(4)
	Institutional Class	1.71%
	Investor Class	1.44%
	Average
	Effective
	Duration	5.04 years
	Average
	Effective
	Maturity	5.30 years
	Annualized
	Expense
Sector Weightings(1)	Ratio(5)
	Institutional Class	0.30%
	Investor Class	0.55%	(6)
	Portfolio
	Turnover Rate	124%
	Number of
	Holdings	182

(1)	Percentages shown are based on the Fund’s total investments.
(2)	The quality profile is calculated on a market value-weighted basis using the highest credit quality rating for each security held by the Fund given by S&P, Moody’s or Fitch, each of which is a Nationally Recognized Statistical Rating Organization (NRSRO).  NRSROs rate the credit quality of securities using a scale that generally ranges from AAA (highest) to D (lowest).
(3)	Includes pre-refunded and escrowed-to-maturity (ETM) bonds.
(4)	SEC yields are based on SEC guidelines and are calculated for the 30 days ended December 31, 2020.
(5)	Reflects expense ratios as stated in the Fund’s current prospectus.
(6)	Includes 0.25% 12b-1 fee.

Page 433

Baird Municipal Bond Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on the Fund’s inception date (11/15/19), assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on the Fund’s inception date (11/15/19), assuming reinvestment of all distributions.

Page 434

Baird Municipal Bond Fund

December 31, 2020 (Unaudited)

Total Returns

		Average
		Annual
	One	Since
For the Periods Ended December 31, 2020	Year	Inception(1)
Institutional Class Shares	9.95%	9.94%
Investor Class Shares	9.58%	9.58%
Bloomberg Barclays Municipal Bond Index(2)	5.21%	5.39%

(1)

For the period from November 15, 2019 (inception date) through December 31, 2020.

(2)

The Bloomberg Barclays Municipal Bond Index is considered representative of the broad market for investment grade, tax-exempt bonds with a maturity of at least one year. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds and prerefunded bonds. This Index does not reflect any deduction for fees, expenses or taxes. A direct investment in an index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.  The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The Fund’s gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund may invest up to 15% of its net assets in non-investment grade debt securities (commonly referred to as “high yield” bonds). While these types of debt securities typically offer higher yields than investment grade securities, they also include greater risks including increased credit risk and the increased risk of default or bankruptcy.  The Fund may invest up to 25% of its total assets in municipal obligations issued by persons in the same state.  As a result, changes in economic, business or political conditions of a particular state may have a disproportionate impact on the Fund’s share price. Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates.

The Fund may invest up to 20% of its net assets in U.S. government and corporate bonds and other debt securities that are of the same quality as its investments in municipal bonds. These bonds produce income that is taxable for federal income tax purposes, unlike municipal bonds which generally provide income exempt from federal income tax.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results.  Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com.  Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 435

Baird Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments

	Principal				% of
	Amount		Value		Net Assets
Municipal Bonds
Alabama
Alabama Community College System,
3.500%, 11/01/2025 (Insured by BAM)	$	100,000	$	112,318
Alabama Special Care Facilities Financing Authority,
5.000%, 06/01/2026 (Callable 06/01/2025)		110,000		130,724
Black Belt Energy Gas District,
4.000%, 12/01/2049 (Callable 09/01/2025)
(Mandatory Tender Date 12/01/2025)(1)		45,000		51,948
Chilton County Health Care Authority,
3.000%, 11/01/2027 (Callable 11/01/2025)		100,000		108,742
Eutaw Industrial Development Board,
0.060%, 06/01/2028 (Optional Put Date 01/04/2021)(1)		200,000		200,000
Industrial Development Board of the City of Mobile AL,
0.050%, 06/01/2034 (Optional Put Date 01/04/2021)(1)		200,000		200,000
Tallassee Board of Education,
4.000%, 08/01/2034
(Callable 08/01/2030) (Insured by AGM)		100,000		122,539
University of West Alabama:
4.000%, 01/01/2040
(Callable 01/01/2030) (Insured by AGM)		50,000		58,299
4.000%, 01/01/2041
(Callable 01/01/2030) (Insured by AGM)		100,000		116,271
Total Alabama
(Cost $1,066,518)				1,100,841		5.0	%
Alaska
CIVIC Ventures,
5.000%, 09/01/2025		100,000		109,987
Total Alaska
(Cost $108,188)				109,987		0.5	%
Arizona
Arizona Industrial Development Authority:
5.000%, 10/01/2030 (Callable 10/01/2026)(3)		100,000		103,197
4.000%, 07/01/2032 (Callable 01/01/2028)
(Insured by SD CRED PROG)		100,000		113,322
Industrial Development Authority of the County of Pima,
4.000%, 07/01/2029		25,000		28,987
Total Arizona
(Cost $236,459)				245,506		1.1	%
Arkansas
Batesville Public Facilities Board,
5.000%, 06/01/2026		150,000		168,166
Carroll-Boone Water District,
3.000%, 12/01/2032 (Callable 12/01/2025)		150,000		158,726

The accompanying notes are an integral part of these financial statements.

Page 436

Baird Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Southern Arkansas University,
4.000%, 03/01/2028
(Callable 03/01/2025) (Insured by AGM)	$	130,000	$	146,587
Total Arkansas
(Cost $463,969)				473,479		2.2	%
California
California Infrastructure & Economic Development Bank,
0.478%, 08/01/2047 (1 Month LIBOR USD + 0.380%)
(Callable 02/01/2021)
(Mandatory Tender Date 08/01/2021)(2)		75,000		74,992
California Municipal Finance Authority,
5.000%, 10/01/2023		85,000		94,151
California School Finance Authority,
4.000%, 07/01/2021(3)		100,000		101,543
El Rancho Unified School District,
0.000%, 08/01/2031
(Callable 08/01/2028) (Insured by AGM)(7)		115,000		141,367
Los Alamitos Unified School District,
0.000%, 08/01/2042 (Callable 08/01/2029)(7)		105,000		118,873
Los Angeles Regional Airports Improvement Corp.,
4.500%, 01/01/2027 (Callable 01/01/2022)		125,000		128,918
Mayers Memorial Hospital District,
0.000%, 08/01/2029		160,000		128,643
Modesto Irrigation District,
0.731%, 09/01/2027 (3 Month LIBOR USD + 0.580%)
(Callable 02/01/2021) (Insured by NATL)(2)		60,000		59,257
Morongo Unified School District,
0.000%, 08/01/2041 (Callable 08/01/2030)(7)		25,000		27,043
Newport Mesa Unified School District,
0.000%, 08/01/2042 (Callable 08/01/2031)(7)		35,000		49,513
Oak Park Unified School District,
0.000%, 08/01/2038
(Callable 08/01/2031) (Insured by AGM)(7)		50,000		74,358
Oxnard School District,
2.000%, 08/01/2045
(Callable 08/01/2026) (Insured by BAM)(7)		150,000		166,686
Total California
(Cost $1,107,782)				1,165,344		5.3	%
Colorado
City & County of Denver CO,
5.000%, 08/01/2041 (Callable 08/01/2026)		115,000		137,096
Colorado Educational & Cultural Facilities Authority,
2.000%, 09/01/2030 (Callable 09/01/2028)		100,000		100,823

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Colorado Health Facilities Authority,
4.250%, 12/01/2023 (ETM)	$	15,000	$	16,676
E-470 Public Highway Authority,
0.000%, 09/01/2029 (Insured by NATL)		100,000		88,858
Vauxmont Metropolitan District:
5.000%, 12/15/2032
(Callable 12/15/2024) (Insured by AGM)		25,000		29,097
3.250%, 12/15/2050
(Callable 12/15/2024) (Insured by AGM)		75,000		80,680
Total Colorado
(Cost $428,123)				453,230		2.1	%
Connecticut
Connecticut State Higher
Education Supplement Loan Authority,
3.000%, 11/15/2035 (Callable 11/15/2026)		150,000		156,601
Total Connecticut
(Cost $146,754)				156,601		0.7	%
District of Columbia
Metropolitan Washington Airports Authority,
0.000%, 10/01/2036 (Insured by AGC)		100,000		71,469
Total District of Columbia
(Cost $64,372)				71,469		0.3	%
Florida
Capital Trust Agency, Inc.:
5.250%, 12/01/2024(3)		100,000		99,706
5.250%, 12/01/2058 (Callable 12/01/2028)(3)		150,000		159,078
City of Tallahassee FL,
4.000%, 12/01/2035 (Callable 06/01/2025)		25,000		26,601
County of St. Lucie FL,
0.030%, 09/01/2028 (Optional Put Date 01/04/2021)(1)		200,000		200,000
Florida Housing Finance Corp.,
4.200%, 01/01/2045
(Callable 01/01/2028) (Insured by GNMA)		125,000		138,126
JEA Water & Sewer System Revenue,
0.080%, 10/01/2038 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		300,000		300,000
Miami Health Facilities Authority,
5.000%, 07/01/2021		25,000		24,967
Orange County Convention Center,
4.000%, 10/01/2034 (Callable 10/01/2026)		150,000		170,892
Orange County Health Facilities Authority,
5.000%, 08/01/2028 (Callable 08/01/2024)		200,000		224,188

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Palm Beach County Health Facilities Authority,
5.000%, 05/15/2023	$	200,000	$	213,574
University of West Florida,
4.000%, 06/01/2034 (Callable 06/01/2026)		50,000		54,926
Total Florida
(Cost $1,572,618)				1,612,058		7.4	%
Georgia
Burke County Development Authority,
0.050%, 07/01/2049 (Optional Put Date 01/04/2021)(1)		100,000		100,000
Development Authority of Appling County,
1.500%, 01/01/2038
(Mandatory Tender Date 02/03/2025)(1)		100,000		102,107
Total Georgia
(Cost $200,000)				202,107		0.9	%
Illinois
Chicago Board of Education,
5.500%, 12/01/2026 (Insured by NATL)		60,000		68,437
Chicago Park District,
5.000%, 01/01/2022		85,000		87,978
City of Chicago IL,
0.000%, 01/01/2027 (Insured by NATL)		100,000		86,076
Cook County Community College District No. 508,
5.250%, 12/01/2028 (Callable 12/01/2023)		75,000		80,251
Exceptional Children Have Opportunities,
4.000%, 12/01/2035 (Callable 12/01/2029)		150,000		174,796
Illinois Finance Authority:
5.125%, 05/15/2035 (Callable 02/01/2021)		25,000		25,065
4.125%, 11/15/2037 (Callable 11/15/2025)		30,000		33,175
6.000%, 10/01/2048 (Callable 10/01/2022)		100,000		104,276
Joliet Park District,
4.000%, 02/01/2033
(Callable 02/01/2023) (Insured by AGM)		100,000		103,939
Metropolitan Pier & Exposition Authority,
0.000%, 06/15/2029 (Insured by NATL)		100,000		84,122
Southern Illinois University,
5.000%, 04/01/2021		95,000		95,580
Upper Illinois River Valley Development Authority,
5.000%, 01/01/2045 (Callable 01/01/2027)(3)		100,000		104,304
Village of Crestwood IL,
4.000%, 12/15/2027
(Callable 12/15/2025) (Insured by BAM)		100,000		112,758

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Will County Community High School District No. 210:
0.000%, 01/01/2027	$	30,000	$	25,853
4.000%, 01/01/2034
(Callable 01/01/2029) (Insured by AGM)		100,000		112,297
Total Illinois
(Cost $1,249,461)				1,298,907		5.9	%
Indiana
Indiana Finance Authority,
5.000%, 10/01/2032 (Callable 10/01/2023)		150,000		153,789
Indiana Health & Educational Facilities Financing Authority,
5.000%, 11/15/2046 (Callable 11/15/2026)		100,000		121,327
St. Joseph County Airport Authority,
0.010%, 07/01/2028		155,000		140,453
Total Indiana
(Cost $384,731)				415,569		1.9	%
Iowa
City of Cedar Rapids IA,
0.158%, 08/15/2029 (Insured by AMBAC)(1)(5)		100,000		96,250
City of Coralville IA,
4.000%, 06/01/2025 (Callable 06/01/2024)		100,000		99,727
Total Iowa
(Cost $195,772)				195,977		0.9	%
Kansas
City of Coffeyville KS,
5.000%, 06/01/2025 (Insured by NATL)(3)		100,000		110,773
City of Derby KS,
3.900%, 03/01/2037 (Callable 03/01/2025)		25,000		25,363
Total Kansas
(Cost $128,868)				136,136		0.6	%
Kentucky
Kentucky Economic Development Finance Authority,
0.000%, 10/01/2027 (Insured by NATL)		90,000		80,821
Kentucky Public Energy Authority,
1.216%, 12/01/2049 (1 Month LIBOR USD + 1.120%)
(Callable 03/01/2025)
(Mandatory Tender Date 06/01/2025)(2)		50,000		50,367
Total Kentucky
(Cost $123,105)				131,188		0.6	%
Louisiana
Louisiana Stadium & Exposition District,
5.000%, 07/01/2025 (Callable 07/01/2023)		125,000		137,102
Total Louisiana
(Cost $132,777)				137,102		0.6	%

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Maryland
Maryland Health & Higher Educational Facilities Authority,
5.000%, 01/01/2030(6)	$	100,000	$	120,448
Total Maryland
(Cost $119,563)				120,448		0.6	%
Massachusetts
Massachusetts Development Finance Agency:
3.500%, 10/01/2022(3)		60,000		61,312
5.000%, 07/15/2025(3)		50,000		57,562
Total Massachusetts
(Cost $114,645)				118,874		0.6	%
Michigan
Flint Hospital Building Authority,
5.000%, 07/01/2023		50,000		52,624
Michigan Finance Authority,
5.000%, 07/01/2044 (Callable 07/01/2024)		300,000		323,043
Total Michigan
(Cost $375,335)				375,667		1.7	%
Minnesota
City of Maple Grove MN,
4.000%, 05/01/2037 (Callable 05/01/2027)		105,000		114,031
Housing & Redevelopment Authority of The City of St. Paul,
5.000%, 12/01/2036 (Callable 12/01/2030)		150,000		177,233
Total Minnesota
(Cost $285,229)				291,264		1.3	%
Mississippi
City of Gulfport MS,
5.000%, 07/01/2026		100,000		114,772
State of Mississippi,
5.000%, 10/15/2029 (Callable 10/15/2025)		120,000		139,219
Total Mississippi
(Cost $250,450)				253,991		1.2	%
Missouri
Hickman Mills C-1 School District,
3.000%, 03/01/2040
(Callable 03/01/2028) (Insured by ST AID)		200,000		219,828
Industrial Development Authority of the City of St. Louis,
3.875%, 11/15/2029 (Callable 11/15/2026)		100,000		93,657
Missouri Southern State University,
4.000%, 10/01/2037
(Callable 10/01/2029) (Insured by AGM)		65,000		73,184

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
St. Joseph Industrial Development Authority,
2.950%, 01/01/2022	$	100,000	$	99,364
St. Louis Land Clearance for Redevelopment Authority:
4.250%, 06/01/2026		125,000		137,079
3.875%, 10/01/2035 (Callable 10/01/2029)		165,000		156,012
Total Missouri
(Cost $769,609)				779,124		3.6	%
Nebraska
Village of Boys Town NE,
3.000%, 09/01/2028		100,000		114,723
Total Nebraska
(Cost $100,000)				114,723		0.5	%
Nevada
City of Sparks NV,
2.500%, 06/15/2024(3)		50,000		50,205
Total Nevada
(Cost $45,621)				50,205		0.2	%
New Hampshire
New Hampshire Health and Education Facilities Authority:
3.150%, 04/01/2022 (Callable 11/01/2021)(3)		500,000		503,105
0.070%, 10/01/2030 (Callable 01/04/2021)
(Optional Put Date 01/07/2021)(1)		200,000		200,000
Total New Hampshire
(Cost $703,156)				703,105		3.2	%
New Jersey
Atlantic City Board of Education,
3.400%, 08/15/2024(3)		85,000		91,288
Borough of Woodbury Heights NJ,
4.000%, 12/01/2024
(Callable 02/01/2021) (Insured by AGC)		20,000		20,053
Essex County Improvement Authority,
5.000%, 11/01/2027		100,000		125,774
New Jersey Economic Development Authority,
5.000%, 03/01/2029 (Callable 03/01/2023)		300,000		321,906
New Jersey Transportation Trust Fund Authority:
0.000%, 12/15/2026 (Insured by AMBAC)		35,000		32,054
4.000%, 06/15/2045 (Callable 12/15/2030)		200,000		223,664
State of New Jersey,
5.000%, 06/01/2029		200,000		259,038
Total New Jersey
(Cost $1,043,954)				1,073,777		4.9	%

The accompanying notes are an integral part of these financial statements.

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Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
New York
Albany County Capital Resource Corp.,
3.100%, 07/01/2030	$	100,000	$	93,857
Dutchess County Local Development Corp.:
3.000%, 07/01/2036 (Callable 07/01/2026)		150,000		157,250
5.000%, 07/01/2045 (Callable 07/01/2030)(3)		150,000		165,231
Metropolitan Transportation Authority:
5.000%, 05/15/2022		25,000		25,989
5.000%, 11/15/2023		50,000		54,121
0.646%, 11/01/2030 (1 Month LIBOR USD + 0.550%)
(Mandatory Tender Date 11/01/2022)(2)		25,000		24,214
Middletown City School District,
3.000%, 06/15/2034
(Callable 06/15/2024) (Insured by ST AID)		110,000		115,878
New York City Industrial Development Agency,
2.052%, 03/01/2025(1)		100,000		102,482
New York City Transitional Finance Authority,
4.000%, 07/15/2040
(Callable 07/15/2029) (Insured by ST AID)		150,000		176,559
New York State Dormitory Authority,
5.000%, 03/15/2048 (Callable 09/15/2028)		250,000		312,085
New York State Urban Development Corp.,
5.000%, 03/15/2047		200,000		257,224
Onondaga Civic Development Corp.,
5.000%, 10/01/2023		100,000		102,983
Town of Ramapo NY:
3.250%, 05/15/2023		100,000		98,067
3.750%, 03/01/2030 (Callable 03/01/2023)		50,000		48,105
Total New York
(Cost $1,663,988)				1,734,045		7.9	%
North Carolina
Winston-Salem State University,
4.250%, 06/01/2032 (Callable 06/01/2024)		50,000		50,935
Total North Carolina
(Cost $54,039)				50,935		0.2	%
North Dakota
City of Dickinson ND,
5.000%, 10/01/2025 (Callable 10/01/2021)		100,000		101,961
County of Burleigh ND,
2.750%, 02/01/2022 (Callable 01/21/2021)		250,000		250,043
County of McKenzie ND,
5.000%, 08/01/2024 (Callable 08/01/2023)		100,000		109,674
Jamestown Park District,
4.000%, 07/01/2031 (Callable 07/01/2024)		100,000		108,906

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
North Dakota Housing Finance Agency,
3.350%, 07/01/2031 (Callable 01/01/2027)	$	90,000	$	99,357
Total North Dakota
(Cost $662,368)				669,941		3.1	%
Ohio
Cleveland-Cuyahoga County Port Authority,
5.000%, 08/01/2025 (Callable 08/01/2024)		160,000		178,515
Ohio Higher Educational Facility Commission,
2.659%, 12/01/2023(1)		170,000		175,370
Ohio Housing Finance Agency,
3.750%, 09/01/2050
(Callable 03/01/2029) (Insured by GNMA)		65,000		73,459
Ohio Turnpike & Infrastructure Commission,
0.000%, 02/15/2034 (Callable 02/15/2031)(7)		70,000		87,301
Port of Greater Cincinnati Development Authority:
3.000%, 05/01/2023 (Callable 05/01/2022)		100,000		100,068
5.000%, 04/01/2030		125,000		157,826
Total Ohio
(Cost $751,151)				772,539		3.5	%
Oklahoma
Norman Regional Hospital Authority,
5.000%, 09/01/2037 (Callable 09/01/2027)		25,000		29,478
Tulsa Industrial Authority:
5.000%, 10/01/2022		100,000		104,608
5.000%, 10/01/2023		25,000		26,746
Total Oklahoma
(Cost $160,221)				160,832		0.7	%
Oregon
Clackamas Community College District,
5.000%, 06/15/2038 (Callable 06/15/2027)(7)		100,000		122,385
Salem Hospital Facility Authority,
5.000%, 05/15/2034 (Callable 05/15/2029)		50,000		64,277
Total Oregon
(Cost $168,721)				186,662		0.9	%
Pennsylvania
Berks County Industrial Development Authority,
5.000%, 11/01/2023		200,000		212,938
Bucks County Industrial Development Authority,
3.750%, 09/15/2043 (Callable 09/15/2023)		130,000		136,534
Dauphin County General Authority,
6.250%, 10/15/2053 (Callable 10/15/2028)(3)		400,000		411,348
Delaware County Authority,
4.000%, 10/01/2022		90,000		92,934

The accompanying notes are an integral part of these financial statements.

Page 444

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Delaware Valley Regional Finance Authority:
0.600%, 09/01/2048
(SIFMA Municipal Swap Index + 0.530%)
(Callable 09/01/2022)
(Mandatory Tender Date 09/01/2023)(2)	$	150,000	$	149,811
0.190%, 11/01/2055
(SIFMA Municipal Swap Index + 0.210%)
(Callable 01/04/2021) (Optional Put Date 01/07/2021)(1)		100,000		100,000
East Hempfield Township Industrial Development Authority,
5.000%, 07/01/2025		150,000		151,827
Mercer County Industrial Development Authority,
6.125%, 10/01/2050 (Callable 10/01/2025)(3)		300,000		308,832
Montgomery County Higher Education & Health Authority,
3.000%, 05/01/2036
(Mandatory Tender Date 05/01/2021)(1)		100,000		100,514
Montgomery County Industrial Development Authority,
5.000%, 11/15/2036 (Callable 11/15/2026)		150,000		174,250
Pennsylvania Higher Educational Facilities Authority:
5.000%, 01/01/2025 (Callable 01/01/2022)		90,000		92,425
5.000%, 05/01/2031 (Callable 05/01/2026)		25,000		29,521
5.000%, 07/01/2035 (Callable 07/01/2026)		100,000		100,379
Pennsylvania Turnpike Commission:
0.000%, 12/01/2040 (Callable 06/01/2029)(7)		75,000		78,965
5.000%, 12/01/2048 (Callable 12/01/2028)		40,000		50,112
Philadelphia Authority for Industrial Development,
3.500%, 12/01/2036 (Callable 12/01/2028)		100,000		110,352
Reading School District,
0.000%, 01/15/2029 (Insured by NATL)		100,000		86,152
Sayre Health Care Facilities Authority,
0.981%, 12/01/2031 (3 Month LIBOR USD + 0.830%)
(Callable 02/01/2021)(2)		75,000		72,742
Total Pennsylvania
(Cost $2,412,089)				2,459,636		11.2	%
Rhode Island
Rhode Island Turnpike & Bridge Authority,
4.000%, 10/01/2036 (Callable 10/01/2029)		125,000		150,325
Total Rhode Island
(Cost $139,122)				150,325		0.7	%
South Carolina
Florence-Darlington Commission for Technical Education,
5.000%, 03/01/2024 (Callable 09/01/2023)		100,000		106,059
Patriots Energy Group Financing Agency,
4.000%, 10/01/2048 (Callable 11/01/2023)
(Mandatory Tender Date 02/01/2024)(1)		65,000		71,555

The accompanying notes are an integral part of these financial statements.

Page 445

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
South Carolina Jobs-Economic Development Authority:
4.000%, 08/15/2030 (Callable 08/15/2026)	$	100,000	$	111,852
5.250%, 08/15/2033 (Callable 08/15/2026)		150,000		178,060
South Carolina State Housing
Finance & Development Authority,
3.800%, 07/01/2034
(Callable 07/01/2024) (Insured by GNMA)		75,000		77,467
South Carolina Transportation Infrastructure Bank,
0.546%, 10/01/2031 (1 Month LIBOR USD + 0.450%)
(Callable 10/01/2021)
(Mandatory Tender Date 10/01/2022)(2)		150,000		149,799
Total South Carolina
(Cost $672,472)				694,792		3.2	%
South Dakota
City of Rapid City SD,
4.000%, 12/01/2035 (Callable 12/01/2029)		125,000		140,551
Total South Dakota
(Cost $133,804)				140,551		0.6	%
Tennessee
City of Memphis TN,
4.000%, 12/01/2035 (Callable 12/01/2026)		125,000		145,227
Total Tennessee
(Cost $145,780)				145,227		0.7	%
Texas
Arlington Higher Education Finance Corp.,
4.000%, 08/01/2033
(Callable 08/01/2028) (PSF Guaranteed)		125,000		148,626
Austin-Bergstrom Landhost Enterprises, Inc.,
5.000%, 10/01/2035 (Callable 10/01/2027)		100,000		108,995
Brazoria County Toll Road Authority,
0.000%, 03/01/2038 (Callable 03/01/2030)(7)		55,000		56,110
Brazos Higher Education Authority, Inc.,
2.350%, 04/01/2040 (Callable 04/01/2030)		80,000		78,923
Harris County Cultural Education Facilities Finance Corp.,
0.640%, 12/01/2049
(SIFMA Municipal Swap Index + 0.570%)
(Callable 06/01/2024)
(Mandatory Tender Date 12/04/2024)(2)		40,000		39,806
Lower Colorado River Authority,
5.000%, 05/15/2040 (Callable 05/15/2025)		75,000		86,567
Tarrant County Cultural Education Facilities Finance Corp.,
2.250%, 11/15/2025		150,000		154,572

The accompanying notes are an integral part of these financial statements.

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Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal				% of
	Amount		Value		Net Assets
Texas Municipal Gas Acquisition & Supply Corp. I,
6.250%, 12/15/2026	$	90,000	$	108,002
Total Texas
(Cost $750,200)				781,601		3.6	%
Utah
Weber Basin Water Conservancy District,
5.000%, 10/01/2050 (Callable 10/01/2029)		205,000		260,865
Total Utah
(Cost $252,825)				260,865		1.2	%
Washington
King County Housing Authority,
4.000%, 11/01/2036 (Callable 11/01/2029)		200,000		241,178
Pend Oreille County Public Utility District No. 1,
5.000%, 01/01/2038 (Callable 01/01/2029)		150,000		172,624
Washington Health Care Facilities Authority,
1.470%, 01/01/2035
(SIFMA Municipal Swap Index + 1.400%)
(Callable 07/01/2024)
(Mandatory Tender Date 01/01/2025)(2)		90,000		89,212
Total Washington
(Cost $471,232)				503,014		2.3	%
Wisconsin
Palmyra-Eagle Area School District,
3.000%, 03/01/2025 (Callable 03/01/2023)		75,000		72,956
Public Finance Authority:
5.000%, 07/01/2022		55,000		57,087
5.000%, 10/01/2023(3)		75,000		79,685
5.000%, 10/01/2044 (Callable 04/01/2029)		250,000		305,012
Village of Mount Pleasant WI,
5.000%, 04/01/2048 (Callable 04/01/2028)		150,000		180,827
Wisconsin Center District:
0.000%, 12/15/2030 (Insured by AGM)		450,000		379,845
0.000%, 12/15/2037
(Callable 06/15/2026) (Insured by BAM)		200,000		115,262
Wisconsin Health & Educational Facilities Authority:
4.000%, 05/01/2038 (Callable 05/01/2025)		100,000		87,336
5.000%, 08/15/2039 (Callable 08/15/2024)		100,000		112,950
Wisconsin Housing & Economic Development Authority,
3.500%, 07/01/2025(3)		100,000		101,782
Total Wisconsin
(Cost $1,429,360)				1,492,742		6.8	%

The accompanying notes are an integral part of these financial statements.

Page 447

Baird Municipal Bond Fund

Schedule of Investments, December 31, 2020

Long-Term Investments (cont.)

	Principal					% of
	Amount		Value			Net Assets
Wyoming
Carbon County Specific Purpose Tax Joint Powers Board,
5.000%, 06/15/2025	$	100,000	$	113,379
Total Wyoming
(Cost $112,765)				113,379			0.5	%
Total Long-Term Investments
(Cost $21,397,196)				22,103,765			100.9	%
Short-Term Investment
	Shares
Money Market Mutual Fund
Federated Hermes Institutional Tax-Free
Cash Trust, Premier Shares, 0.01%(4)		102,702		102,702
Total Short-Term Investment
(Cost $102,702)				102,702			0.5	%
Total Investments
(Cost $21,499,898)				22,206,467			101.4	%
Liabilities in Excess of Other Assets				(304,647	)		(1.4	)%
TOTAL NET ASSETS			$	21,901,820			100.0	%

Notes to Schedule of Investments

AGC – Assured Guaranty Corp.

AGM – Assured Guaranty Municipal

AMBAC – Ambac Assurance Corp.

BAM – Build America Mutual Assurance Co.

GNMA – Government National Mortgage Association

NATL – National Public Finance Guarantee Corp.

SD CRED PROG – State Credit Enhancement Program

ST AID – State Aid Intercept/Withholding

ETM – Escrowed to Maturity

LIBOR – London Inter-bank Offered Rate

PSF – Permanent School Fund

SIFMA – Securities Industry and Financial Markets Association

(1)	Variable rate security. The rate reported is the rate in effect as of December 31, 2020.
(2)	Variable rate security based on a reference index and spread. The rate reported is the rate in effect as of December 31, 2020.
(3)	Security issued under Rule 144A under the Securities Act of 1933 and classified as liquid under the Fund’s liquidity risk management program. Purchased in a private placement transaction; resale to the public may require registration or may extend only to qualified institutional buyers. At December 31, 2020, the value of these securities total $2,508,951, which represents 11.46% of total net assets.
(4)	Seven-day yield.
(5)	Auction rate security. An auction rate security is a debt instrument with a long nominal maturity for which the interest rate is regularly reset through a Dutch auction. The rate presented is either the rate set through the auction or the maximum interest rate provided for in the security issuance provision.

The accompanying notes are an integral part of these financial statements.

Page 448

Baird Municipal Bond Fund

Schedule of Investments, December 31, 2020

Notes to Schedule of Investments (cont.)

(6)	Security or a portion of the security purchased on a when-issued or delayed delivery basis.
(7)	Step-up bond; the interest rate shown is the rate in effect as of December 31, 2020.

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value.  These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability.  These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Long-Term Investments
Municipal Bonds	$	—	$	22,103,765	$	—	$	22,103,765
Total Long-Term Investments		—		22,103,765		—		22,103,765
Short-Term Investment
Money Market Mutual Fund		102,702		—		—		102,702
Total Short-Term Investment		102,702		—		—		102,702
Total Investments	$	102,702	$	22,103,765	$	—	$	22,206,467

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 449

Additional Information on Fund Expenses

December 31, 2020 (Unaudited)

As a shareholder of a mutual fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, such as management fees; distribution and/or service (12b-1) fees; and other fund expenses.  Although the Funds do not charge any sales loads, redemption fees, or other transaction fees, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services, the Funds’ transfer agent.  If you request that a redemption be made by wire transfer, currently the Funds’ transfer agent charges a $15.00 fee.

This Example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds.  The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (7/1/20 – 12/31/20).

Actual Expenses

The third and fourth columns of the following tables provide information about account values based on actual returns and actual expenses.  You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the fourth column entitled “Expenses Paid During Period’’ to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fifth and sixth columns of the following tables provide information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.  Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs.  Therefore, the sixth column of the tables (entitled “Expenses Paid During Period”) is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different mutual funds. In addition, if these transactional costs were included, your costs could have been higher.

Page 450

Additional Information on Fund Expenses

December 31, 2020 (Unaudited)

Actual vs. Hypothetical Returns

					Hypothetical
					(5% return
			Actual		before expenses)
	Fund's	Beginning	Ending	Expenses	Ending	Expenses
	Annualized	Account	Account	Paid	Account	Paid
	Expense	Value	Value	During	Value	During
	Ratio(1)	7/1/20	12/31/20	Period(1)	12/31/20	Period(1)
Baird Ultra Short Bond Fund
Institutional Class	0.15%	$1,000.00	$1,004.70	$0.76	$1,024.38	$0.76
Investor Class	0.40%	$1,000.00	$1,002.40	$2.01	$1,023.13	$2.03
Baird Short-Term Bond Fund
Institutional Class	0.30%	$1,000.00	$1,012.60	$1.52	$1,023.63	$1.53
Investor Class	0.55%	$1,000.00	$1,010.30	$2.78	$1,022.37	$2.80
Baird Intermediate Bond Fund
Institutional Class	0.30%	$1,000.00	$1,017.60	$1.52	$1,023.63	$1.53
Investor Class	0.55%	$1,000.00	$1,016.30	$2.79	$1,022.37	$2.80
Baird Aggregate Bond Fund
Institutional Class	0.30%	$1,000.00	$1,021.40	$1.52	$1,023.63	$1.53
Investor Class	0.55%	$1,000.00	$1,020.20	$2.79	$1,022.37	$2.80
Baird Core Plus Bond Fund
Institutional Class	0.30%	$1,000.00	$1,028.40	$1.53	$1,023.63	$1.53
Investor Class	0.55%	$1,000.00	$1,027.50	$2.80	$1,022.37	$2.80
Baird Short-Term
Municipal Bond Fund
Institutional Class	0.30%	$1,000.00	$1,016.20	$1.52	$1,023.63	$1.53
Investor Class	0.55%	$1,000.00	$1,013.80	$2.78	$1,022.37	$2.80
Baird Strategic
Municipal Bond Fund
Institutional Class	0.30%	$1,000.00	$1,034.20	$1.53	$1,023.63	$1.53
Investor Class	0.55%	$1,000.00	$1,033.60	$2.81	$1,022.37	$2.80
Baird Quality Intermediate
Municipal Bond Fund
Institutional Class	0.30%	$1,000.00	$1,016.40	$1.52	$1,023.63	$1.53
Investor Class	0.55%	$1,000.00	$1,015.40	$2.79	$1,022.37	$2.80
Baird Core Intermediate
Municipal Bond Fund
Institutional Class	0.30%	$1,000.00	$1,028.70	$1.53	$1,023.63	$1.53
Investor Class	0.55%	$1,000.00	$1,026.40	$2.80	$1,022.37	$2.80
Baird Municipal Bond Fund
Institutional Class	0.30%	$1,000.00	$1,047.30	$1.54	$1,023.63	$1.53
Investor Class	0.55%	$1,000.00	$1,044.90	$2.83	$1,022.37	$2.80

(1) Expenses are equal to the Fund's annualized net expense ratio multiplied by the average account value over the period, 184 days and divided by 366 to reflect the one-half year period.

Page 451

Statements of Assets and Liabilities

December 31, 2020

	Baird		Baird		Baird
	Ultra Short		Short-Term		Intermediate
	Bond Fund		Bond Fund		Bond Fund
ASSETS:
Investments, at value (cost $4,609,222,598,
$9,073,419,320 and
$5,152,382,827, respectively)	$	4,612,657,624	$	9,211,305,372	$	5,406,396,337
Interest receivable		23,997,315		47,068,953		29,657,738
Receivable for Fund shares sold		22,999,393		40,402,764		13,859,019
Uninvested cash		238		—		—
Prepaid expenses and other assets		—		12,813		128,364
Total assets		4,659,654,570		9,298,789,902		5,450,041,458
LIABILITIES:
Payable for securities purchased		72,425,509		302,732,337		127,231,723
Payable for Fund shares redeemed		7,522,340		10,495,453		1,852,236
Due to custodian		—		54,751		—
Payable to Advisor, net (Note 5)		378,180		1,863,382		1,108,815
Accrued administration fees (Note 5)		189,090		372,676		221,763
Accrued Rule 12b-1 fees (Note 7)		19,223		52,757		22,070
Total liabilities		80,534,342		315,571,356		130,436,607
NET ASSETS	$	4,579,120,228	$	8,983,218,546	$	5,319,604,851
NET ASSETS CONSIST OF:
Paid-in capital	$	4,575,388,395	$	8,835,782,689	$	5,063,592,345
Total distributable earnings		3,731,833		147,435,857		256,012,506
NET ASSETS	$	4,579,120,228	$	8,983,218,546	$	5,319,604,851
INSTITUTIONAL CLASS SHARES
Net Assets	$	4,456,429,448	$	8,790,481,561	$	5,264,437,374
Shares outstanding ($0.01 par value,
unlimited shares authorized)		442,176,747		886,552,417		450,339,541
Net asset value, offering and
redemption price per share	$	10.08	$	9.92	$	11.69
INVESTOR CLASS SHARES
Net Assets	$	122,690,780	$	192,736,985	$	55,167,477
Shares outstanding ($0.01 par value,
unlimited shares authorized)		12,143,351		19,442,760		4,501,523
Net asset value, offering and
redemption price per share	$	10.10	$	9.91	$	12.26

The accompanying notes are an integral part of these financial statements.

Page 452

Statements of Assets and Liabilities

December 31, 2020

	Baird		Baird
	Aggregate		Core Plus
	Bond Fund		Bond Fund
ASSETS:
Investments, at value (cost $31,328,353,100
and $27,646,158,290, respectively)	$	33,218,348,819	$	29,679,013,266
Interest receivable		176,630,684		182,788,992
Receivable for Fund shares sold		100,250,102		80,263,703
Uninvested cash		307,972		—
Prepaid expenses and other assets		139,182		6,652
Total assets		33,495,676,759		29,942,072,613
LIABILITIES:
Payable for securities purchased		553,683,731		424,530,684
Payable for Fund shares redeemed		29,851,550		19,562,821
Due to custodian		—		53
Payable to Advisor, net (Note 5)		6,855,648		6,133,619
Accrued administration fees (Note 5)		1,371,130		1,226,724
Accrued Rule 12b-1 fees (Note 7)		364,308		755,125
Total liabilities		592,126,367		452,209,026
NET ASSETS	$	32,903,550,392	$	29,489,863,587
NET ASSETS CONSIST OF:
Paid-in capital	$	31,033,756,196	$	27,470,035,399
Total distributable earnings		1,869,794,196		2,019,828,188
NET ASSETS	$	32,903,550,392	$	29,489,863,587
INSTITUTIONAL CLASS SHARES
Net Assets	$	31,874,599,159	$	26,805,544,109
Shares outstanding ($0.01 par value,
unlimited shares authorized)		2,708,739,925		2,208,185,115
Net asset value, offering and
redemption price per share	$	11.77	$	12.14
INVESTOR CLASS SHARES
Net Assets	$	1,028,951,233	$	2,684,319,478
Shares outstanding ($0.01 par value,
unlimited shares authorized)		84,371,979		211,692,826
Net asset value, offering and
redemption price per share	$	12.20	$	12.68

The accompanying notes are an integral part of these financial statements.

Page 453

Statements of Assets and Liabilities

December 31, 2020

					Baird
	Baird		Baird		Quality
	Short-Term		Strategic		Intermediate
	Municipal		Municipal		Municipal
	Bond Fund		Bond Fund		Bond Fund
ASSETS:
Investments, at value (cost $1,546,220,865,
$169,039,130 and
$1,407,086,556, respectively)	$	1,573,785,675	$	171,250,079	$	1,485,026,013
Interest receivable		12,047,208		986,279		12,981,379
Receivable for Fund shares sold		34,835,429		1,655,258		4,372,439
Deposits with broker for future contracts		—		3,695		—
Uninvested cash		112,759		—		—
Prepaid expenses and other assets		—		4,889		31
Total assets		1,620,781,071		173,900,200		1,502,379,862
LIABILITIES:
Payable for securities purchased		1,884,959		2,525,227		—
Payable for Fund shares redeemed		6,261,233		10,677		312,393
Payable to Advisor, net (Note 5)		330,372		31,614		316,351
Accrued administration fees (Note 5)		66,131		6,323		63,310
Accrued Rule 12b-1 fees (Note 7)		26,642		3,810		65,128
Total liabilities		8,569,337		2,577,651		757,182
NET ASSETS	$	1,612,211,734	$	171,322,549	$	1,501,622,680
NET ASSETS CONSIST OF:
Paid-in capital	$	1,584,545,057	$	168,667,157	$	1,433,068,700
Total distributable earnings		27,666,677		2,655,392		68,553,980
NET ASSETS	$	1,612,211,734	$	171,322,549	$	1,501,622,680
INSTITUTIONAL CLASS SHARES
Net Assets	$	1,519,978,919	$	164,346,411	$	1,449,233,436
Shares outstanding ($0.01 par value,
unlimited shares authorized)		145,762,030		15,401,260		120,438,097
Net asset value, offering and
redemption price per share	$	10.43	$	10.67	$	12.03
INVESTOR CLASS SHARES
Net Assets	$	92,232,815	$	6,976,138	$	52,389,244
Shares outstanding ($0.01 par value,
unlimited shares authorized)		8,859,780		653,812		4,245,852
Net asset value, offering and
redemption price per share	$	10.41	$	10.67	$	12.34

The accompanying notes are an integral part of these financial statements.

Page 454

Statements of Assets and Liabilities

December 31, 2020

	Baird Core
	Intermediate		Baird
	Municipal		Municipal
	Bond Fund		Bond Fund
ASSETS:
Investments, at value (cost $815,550,555
and $21,499,898, respectively)	$	851,005,085	$	22,206,467
Interest receivable		6,869,247		178,859
Receivable for Fund shares sold		8,599,012		5,001
Uninvested cash		23,684		—
Total assets		866,497,028		22,390,327
LIABILITIES:
Payable for securities purchased		1,803,654		382,183
Payable for Fund shares redeemed		24,071		100,556
Payable to Advisor, net (Note 5)		177,793		4,308
Accrued administration fees (Note 5)		35,754		862
Accrued Rule 12b-1 fees (Note 7)		4,567		598
Total liabilities		2,045,839		488,507
NET ASSETS	$	864,451,189	$	21,901,820
NET ASSETS CONSIST OF:
Paid-in capital	$	828,453,637	$	21,134,132
Total distributable earnings		35,997,552		767,688
NET ASSETS	$	864,451,189	$	21,901,820
INSTITUTIONAL CLASS SHARES
Net Assets	$	842,156,606	$	20,276,976
Shares outstanding ($0.01 par value,
unlimited shares authorized)		76,863,183		1,900,250
Net asset value, offering and
redemption price per share	$	10.96	$	10.67
INVESTOR CLASS SHARES
Net Assets	$	22,294,583	$	1,624,844
Shares outstanding ($0.01 par value,
unlimited shares authorized)		2,035,919		152,492
Net asset value, offering and
redemption price per share	$	10.95	$	10.66

The accompanying notes are an integral part of these financial statements.

Page 455

Statements of Operations

Year Ended December 31, 2020

	Baird			Baird		Baird
	Ultra Short			Short-Term		Intermediate
	Bond Fund			Bond Fund		Bond Fund
INVESTMENT INCOME:
Interest income, net of paydowns	$	38,570,711		$	165,683,639	$	117,871,144
Other income		—			12,814		—
Total investment income		38,570,711			165,696,453		117,871,144
EXPENSES:
Investment advisory fees (Note 5)		6,960,328			19,129,986		11,921,551
Administration fees (Note 5)		1,392,066			3,825,997		2,384,310
Rule 12b-1 fees – Investor Class Shares (Note 7)		188,910			443,178		131,043
Total expenses		8,541,304			23,399,161		14,436,904
Fee waiver by Advisor (Note 5)		(4,176,197	)		—		—
Net expenses		4,365,107			23,399,161		14,436,904
NET INVESTMENT INCOME		34,205,604			142,297,292		103,434,240
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain on investments		3,997,972			94,099,405		94,825,703
Net change in unrealized
appreciation on investments		841,943			63,720,034		131,357,344
Net realized and unrealized gain on investments		4,839,915			157,819,439		226,183,047
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS	$	39,045,519		$	300,116,731	$	329,617,287

The accompanying notes are an integral part of these financial statements.

Page 456

Statements of Operations

Year Ended December 31, 2020

	Baird		Baird
	Aggregate		Core Plus
	Bond Fund		Bond Fund
INVESTMENT INCOME:
Interest income, net of paydowns	$	664,397,536	$	736,144,462
Other income		—		68,186
Total investment income		664,397,536		736,212,648
EXPENSES:
Investment advisory fees (Note 5)		68,333,750		66,717,956
Administration fees (Note 5)		13,666,750		13,343,591
Rule 12b-1 fees – Investor Class Shares (Note 7)		2,208,840		6,372,462
Total expenses		84,209,340		86,434,009
NET INVESTMENT INCOME		580,188,196		649,778,639
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain on investments		450,058,874		377,481,315
Net change in unrealized
appreciation on investments		1,082,021,852		1,156,986,439
Net realized and unrealized gain on investments		1,532,080,726		1,534,467,754
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS	$	2,112,268,922	$	2,184,246,393

The accompanying notes are an integral part of these financial statements.

Page 457

Statements of Operations

Year Ended December 31, 2020

					Baird
	Baird		Baird		Quality
	Short-Term		Strategic		Intermediate
	Municipal		Municipal		Municipal
	Bond Fund		Bond Fund		Bond Fund
INVESTMENT INCOME:
Interest income	$	22,943,539	$	1,251,403	$	32,573,105
Other income		—		4,998		—
Total investment income		22,943,539		1,256,401		32,573,105
EXPENSES:
Investment advisory fees (Note 5)		3,003,976		155,473		3,489,076
Administration fees (Note 5)		600,795		31,095		697,815
Interest expense (Note 6)		243		123		4,976
Rule 12b-1 fees – Investor Class Shares (Note 7)		179,628		9,772		182,100
Total expenses		3,784,642		196,463		4,373,967
NET INVESTMENT INCOME		19,158,897		1,059,938		28,199,138
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on:
Investments		15,898		1,217,532		(78,247	)
Futures contracts		—		69,043		—
Net change in unrealized
appreciation on investments		17,888,577		2,171,814		29,683,436
Net realized and unrealized gain on investments		17,904,475		3,458,389		29,605,189
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS	$	37,063,372	$	4,518,327	$	57,804,327

The accompanying notes are an integral part of these financial statements.

Page 458

Statements of Operations

Year Ended December 31, 2020

	Baird Core
	Intermediate		Baird
	Municipal		Municipal
	Bond Fund		Bond Fund
INVESTMENT INCOME:
Interest income	$	15,353,571	$	342,779
Other income		—		59
Total investment income		15,353,571		342,838
EXPENSES:
Investment advisory fees (Note 5)		1,608,719		34,266
Administration fees (Note 5)		321,744		6,853
Rule 12b-1 fees – Investor Class Shares (Note 7)		38,787		707
Total expenses		1,969,250		41,826
NET INVESTMENT INCOME		13,384,321		301,012
REALIZED AND UNREALIZED
GAIN ON INVESTMENTS:
Net realized gain on investments		2,308,013		421,211
Net change in unrealized
appreciation on investments		17,146,048		664,767
Net realized and unrealized gain on investments		19,454,061		1,085,978
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS	$	32,838,382	$	1,386,990

The accompanying notes are an integral part of these financial statements.

Page 459

Statements of Changes in Net Assets

Baird Ultra Short Bond Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	34,205,604		$	37,739,622
Net realized gain on investments		3,997,972			1,283,731
Net change in unrealized appreciation on investments		841,943			4,766,335
Net increase in net assets resulting from operations		39,045,519			43,789,688
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		5,157,653,645			1,576,519,226
Shares issued to holders in reinvestment of distributions		36,864,816			36,713,747
Cost of shares redeemed		(2,349,866,576	)		(932,349,988	)
Net increase in net assets resulting
from capital share transactions		2,844,651,885			680,882,985
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(37,083,722	)		(37,557,823	)
Investor Class		(1,027,965	)		(624,557	)
Total net distributions to shareholders		(38,111,687	)		(38,182,380	)
TOTAL INCREASE IN NET ASSETS		2,845,585,717			686,490,293
NET ASSETS:
Beginning of year		1,733,534,511			1,047,044,218
End of year	$	4,579,120,228		$	1,733,534,511

The accompanying notes are an integral part of these financial statements.

Page 460

Statements of Changes in Net Assets

Baird Short-Term Bond Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	142,297,292		$	161,129,708
Net realized gain on investments		94,099,405			24,666,686
Net change in unrealized appreciation on investments		63,720,034			107,756,900
Net increase in net assets resulting from operations		300,116,731			293,553,294
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		4,721,546,127			2,907,577,528
Shares issued to holders in reinvestment of distributions		191,263,918			149,691,548
Cost of shares redeemed		(2,673,470,942	)		(2,278,660,216	)
Net increase in net assets resulting
from capital share transactions		2,239,339,103			778,608,860
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(203,405,971	)		(158,021,583	)
Investor Class		(4,268,709	)		(3,939,938	)
Total net distributions to shareholders		(207,674,680	)		(161,961,521	)
TOTAL INCREASE IN NET ASSETS		2,331,781,154			910,200,633
NET ASSETS:
Beginning of year		6,651,437,392			5,741,236,759
End of year	$	8,983,218,546		$	6,651,437,392

The accompanying notes are an integral part of these financial statements.

Page 461

Statements of Changes in Net Assets

Baird Intermediate Bond Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	103,434,240		$	103,522,908
Net realized gain on investments		94,825,703			8,857,119
Net change in unrealized appreciation on investments		131,357,344			157,961,371
Net increase in net assets resulting from operations		329,617,287			270,341,398
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,550,823,989			1,396,378,184
Shares issued to holders in reinvestment of distributions		150,464,993			87,687,553
Cost of shares redeemed		(933,016,520	)		(568,729,114	)
Net increase in net assets resulting
from capital share transactions		768,272,462			915,336,623
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(170,877,181	)		(102,554,663	)
Investor Class		(1,643,514	)		(1,094,238	)
Total net distributions to shareholders		(172,520,695	)		(103,648,901	)
TOTAL INCREASE IN NET ASSETS		925,369,054			1,082,029,120
NET ASSETS:
Beginning of year		4,394,235,797			3,312,206,677
End of year	$	5,319,604,851		$	4,394,235,797

The accompanying notes are an integral part of these financial statements.

Page 462

Statements of Changes in Net Assets

Baird Aggregate Bond Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	580,188,196		$	547,157,275
Net realized gain on investments		450,058,874			117,338,627
Net change in unrealized appreciation on investments		1,082,021,852			1,082,352,966
Net increase in net assets resulting from operations		2,112,268,922			1,746,848,868
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		14,671,793,407			10,015,319,367
Shares issued to holders in reinvestment of distributions		897,531,339			512,385,172
Cost of shares redeemed		(6,436,143,568	)		(4,678,796,166	)
Net increase in net assets resulting
from capital share transactions		9,133,181,178			5,848,908,373
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(957,457,896	)		(549,645,021	)
Investor Class		(28,240,671	)		(17,995,718	)
Total net distributions to shareholders		(985,698,567	)		(567,640,739	)
TOTAL INCREASE IN NET ASSETS		10,259,751,533			7,028,116,502
NET ASSETS:
Beginning of year		22,643,798,859			15,615,682,357
End of year	$	32,903,550,392		$	22,643,798,859

The accompanying notes are an integral part of these financial statements.

Page 463

Statements of Changes in Net Assets

Baird Core Plus Bond Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	649,778,639		$	609,321,044
Net realized gain on investments		377,481,315			87,582,941
Net change in unrealized appreciation on investments		1,156,986,439			1,227,759,163
Net increase in net assets resulting from operations		2,184,246,393			1,924,663,148
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		9,935,514,754			8,006,235,991
Shares issued to holders in reinvestment of distributions		893,836,372			584,928,310
Cost of shares redeemed		(6,490,498,603	)		(3,769,814,425	)
Net increase in net assets resulting
from capital share transactions		4,338,852,523			4,821,349,876
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(877,183,905	)		(567,068,342	)
Investor Class		(80,861,249	)		(60,455,523	)
Total net distributions to shareholders		(958,045,154	)		(627,523,865	)
TOTAL INCREASE IN NET ASSETS		5,565,053,762			6,118,489,159
NET ASSETS:
Beginning of year		23,924,809,825			17,806,320,666
End of year	$	29,489,863,587		$	23,924,809,825

The accompanying notes are an integral part of these financial statements.

Page 464

Statements of Changes in Net Assets

Baird Short-Term Municipal Bond Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	19,158,897		$	11,618,292
Net realized gain (loss) on investments		15,898			(32,969	)
Net change in unrealized appreciation on investments		17,888,577			9,376,603
Net increase in net assets resulting from operations		37,063,372			20,961,926
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,268,274,181			896,607,390
Shares issued to holders in reinvestment of distributions		15,454,180			9,383,424
Cost of shares redeemed		(705,651,336	)		(244,784,136	)
Net increase in net assets resulting
from capital share transactions		578,077,025			661,206,678
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(17,690,198	)		(10,340,865	)
Investor Class		(945,980	)		(1,298,626	)
Total net distributions to shareholders		(18,636,178	)		(11,639,491	)
TOTAL INCREASE IN NET ASSETS		596,504,219			670,529,113
NET ASSETS:
Beginning of year		1,015,707,515			345,178,402
End of year	$	1,612,211,734		$	1,015,707,515

The accompanying notes are an integral part of these financial statements.

Page 465

Statements of Changes in Net Assets

Baird Strategic Municipal Bond Fund

				November 15, 2019^
	Year Ended			through
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	1,059,938		$	22,291
Net realized gain on:
Investments		1,217,532			40,936
Futures contracts		69,043			—
Net change in unrealized appreciation on investments		2,171,814			39,135
Net increase in net assets resulting from operations		4,518,327			102,362
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		175,516,418			11,940,204
Shares issued to holders in reinvestment of distributions		1,816,257			19,842
Cost of shares redeemed		(20,666,990	)		—
Net increase in net assets resulting
from capital share transactions		156,665,685			11,960,046
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(1,794,911	)		(21,632	)
Investor Class		(107,286	)		(42	)
Total net distributions to shareholders		(1,902,197	)		(21,674	)
TOTAL INCREASE IN NET ASSETS		159,281,815			12,040,734
NET ASSETS:
Beginning of period		12,040,734			—
End of period	$	171,322,549		$	12,040,734

^  Inception was the close of business on November 15, 2019.

The accompanying notes are an integral part of these financial statements.

Page 466

Statements of Changes in Net Assets

Baird Quality Intermediate Municipal Bond Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	28,199,138		$	27,923,026
Net realized loss on investments		(78,247	)		(296,303	)
Net change in unrealized appreciation on investments		29,683,436			36,837,003
Net increase in net assets resulting from operations		57,804,327			64,463,726
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		489,982,241			456,956,508
Shares issued to holders in reinvestment of distributions		24,192,861			24,635,306
Cost of shares redeemed		(385,275,248	)		(295,612,497	)
Net increase in net assets resulting
from capital share transactions		128,899,854			185,979,317
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(26,280,951	)		(26,299,068	)
Investor Class		(1,218,131	)		(1,731,578	)
Total net distributions to shareholders		(27,499,082	)		(28,030,646	)
TOTAL INCREASE IN NET ASSETS		159,205,099			222,412,397
NET ASSETS:
Beginning of year		1,342,417,581			1,120,005,184
End of year	$	1,501,622,680		$	1,342,417,581

The accompanying notes are an integral part of these financial statements.

Page 467

Statements of Changes in Net Assets

Baird Core Intermediate Municipal Bond Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	13,384,321		$	10,624,164
Net realized gain on investments		2,308,013			1,173,329
Net change in unrealized appreciation on investments		17,146,048			16,527,720
Net increase in net assets resulting from operations		32,838,382			28,325,213
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		503,302,866			206,715,430
Shares issued to holders in reinvestment of distributions		11,616,466			7,931,294
Cost of shares redeemed		(209,742,930	)		(70,580,422	)
Net increase in net assets resulting
from capital share transactions		305,176,402			144,066,302
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(14,625,581	)		(10,964,930	)
Investor Class		(331,006	)		(90,108	)
Total net distributions to shareholders		(14,956,587	)		(11,055,038	)
TOTAL INCREASE IN NET ASSETS		323,058,197			161,336,477
NET ASSETS:
Beginning of year		541,392,992			380,056,515
End of year	$	864,451,189		$	541,392,992

The accompanying notes are an integral part of these financial statements.

Page 468

Statements of Changes in Net Assets

Baird Municipal Bond Fund

				November 15, 2019^
	Year Ended			through
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	301,012		$	14,645
Net realized gain on investments		421,211			31,173
Net change in unrealized appreciation on investments		664,767			41,802
Net increase in net assets resulting from operations		1,386,990			87,620
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		13,623,172			7,329,812
Shares issued to holders in reinvestment of distributions		613,016			13,576
Cost of shares redeemed		(445,444	)		—
Net increase in net assets resulting
from capital share transactions		13,790,744			7,343,388
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(655,522	)		(14,009	)
Investor Class		(37,344	)		(47	)
Total net distributions to shareholders		(692,866	)		(14,056	)
TOTAL INCREASE IN NET ASSETS		14,484,868			7,416,952
NET ASSETS:
Beginning of period		7,416,952			—
End of period	$	21,901,820		$	7,416,952

^  Inception was the close of business on November 15, 2019.

The accompanying notes are an integral part of these financial statements.

Page 469

Financial Highlights

Baird Ultra Short Bond Fund – Institutional Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	10.06		$	10.01		$	10.03		$	10.03		$	9.98
Income from investment operations:
Net investment income(1)		0.12			0.26			0.23			0.13			0.11
Net realized and unrealized
gains (losses) on investments		0.05	(3)		0.05			(0.04	)		0.00	(2)(3)		0.04
Total from investment operations		0.17			0.31			0.19			0.13			0.15
Less distributions:
Distributions from
net investment income		(0.14	)		(0.26	)		(0.21	)		(0.13	)		(0.10	)
Distributions from net realized gains		(0.01	)		(0.00	)(2)		—			—			—
Total distributions		(0.15	)		(0.26	)		(0.21	)		(0.13	)		(0.10	)
Net asset value, end of year	$	10.08		$	10.06		$	10.01		$	10.03		$	10.03
Total return		1.66	%		3.11	%		1.95	%		1.30	%		1.56	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	4,456.4		$	1,701.0		$	1,031.5		$	532.0		$	387.3
Ratio of expenses to average net assets		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Ratio of expenses to average
net assets (before waivers)		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income
to average net assets		1.24	%		2.61	%		2.24	%		1.31	%		1.05	%
Ratio of net investment income
to average net assets (before waivers)		1.09	%		2.46	%		2.09	%		1.16	%		0.90	%
Portfolio turnover rate(4)		92	%		70	%		66	%		83	%		97	%

(1)	Calculated using average shares outstanding during the year.
(2)	Amount is less than $0.005.
(3)	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.
(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.

The accompanying notes are an integral part of these financial statements.

Page 470

Financial Highlights

Baird Ultra Short Bond Fund – Investor Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	10.05		$	10.00		$	10.03		$	10.03		$	9.98
Income from investment operations:
Net investment income(1)		0.10			0.24			0.20			0.11			0.08
Net realized and unrealized
gains (losses) on investments		0.07	(2)		0.04			(0.04	)		(0.01	)		0.05
Total from investment operations		0.17			0.28			0.16			0.10			0.13
Less distributions:
Distributions from
net investment income		(0.11	)		(0.23	)		(0.19	)		(0.10	)		(0.08	)
Distributions from net realized gains		(0.01	)		(0.00	)(3)		—			—			—
Total distributions		(0.12	)		(0.23	)		(0.19	)		(0.10	)		(0.08	)
Net asset value, end of year	$	10.10		$	10.05		$	10.00		$	10.03		$	10.03
Total return		1.66	%		2.87	%		1.60	%		1.05	%		1.32	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	122.7		$	32.5		$	15.6		$	7.6		$	5.2
Ratio of expenses to average net assets		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Ratio of expenses to average
net assets (before waivers)		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Ratio of net investment income
to average net assets		0.99	%		2.36	%		1.99	%		1.06	%		0.80	%
Ratio of net investment income
to average net assets (before waivers)		0.84	%		2.21	%		1.84	%		0.91	%		0.65	%
Portfolio turnover rate(4)		92	%		70	%		66	%		83	%		97	%

(1)	Calculated using average shares outstanding during the year.
(2)	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.
(3)	Amount is less than $0.005.
(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.

The accompanying notes are an integral part of these financial statements.

Page 471

Financial Highlights

Baird Short-Term Bond Fund – Institutional Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	9.77		$	9.57		$	9.64		$	9.66		$	9.60
Income from investment operations:
Net investment income(1)		0.18			0.24			0.21			0.17			0.15
Net realized and unrealized
gains (losses) on investments		0.23			0.20			(0.07	)		(0.02	)		0.06
Total from investment operations		0.41			0.44			0.14			0.15			0.21
Less distributions:
Distributions from net investment income		(0.19	)		(0.24	)		(0.21	)		(0.17	)		(0.15	)
Distributions from net realized gains		(0.07	)		—			—			(0.00	)(2)		(0.00	)(2)
Total distributions		(0.26	)		(0.24	)		(0.21	)		(0.17	)		(0.15	)
Net asset value, end of year	$	9.92		$	9.77		$	9.57		$	9.64		$	9.66
Total return		4.23	%		4.68	%		1.49	%		1.53	%		2.25	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	8,790.5		$	6,469.1		$	5,596.2		$	5,399.7		$	3,769.3
Ratio of expenses to average net assets		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income
to average net assets		1.87	%		2.50	%		2.21	%		1.73	%		1.57	%
Portfolio turnover rate(3)		64	%		64	%		58	%		55	%		44	%

(1)	Calculated using average shares outstanding during the year.
(2)	Amount is less than $0.005.
(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.

The accompanying notes are an integral part of these financial statements.

Page 472

Financial Highlights

Baird Short-Term Bond Fund – Investor Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	9.77		$	9.57		$	9.64		$	9.66		$	9.60
Income from investment operations:
Net investment income(1)		0.16			0.22			0.19			0.14			0.13
Net realized and unrealized
gains (losses) on investments		0.21			0.20			(0.07	)		(0.02	)		0.06
Total from investment operations		0.37			0.42			0.12			0.12			0.19
Less distributions:
Distributions from
net investment income		(0.16	)		(0.22	)		(0.19	)		(0.14	)		(0.13	)
Distributions from net realized gains		(0.07	)		—			—			(0.00	)(2)		(0.00	)(2)
Total distributions		(0.23	)		(0.22	)		(0.19	)		(0.14	)		(0.13	)
Net asset value, end of year	$	9.91		$	9.77		$	9.57		$	9.64		$	9.66
Total return		3.86	%		4.42	%		1.24	%		1.28	%		2.00	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	192.7		$	182.4		$	145.0		$	134.9		$	104.9
Ratio of expenses to average net assets		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Ratio of net investment income
to average net assets		1.62	%		2.25	%		1.96	%		1.48	%		1.32	%
Portfolio turnover rate(3)		64	%		64	%		58	%		55	%		44	%

(1)	Calculated using average shares outstanding during the year.
(2)	Amount is less than $0.005.
(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.

The accompanying notes are an integral part of these financial statements.

Page 473

Financial Highlights

Baird Intermediate Bond Fund – Institutional Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	11.27		$	10.80		$	11.01		$	10.97		$	10.93
Income from investment operations:
Net investment income(1)		0.25			0.29			0.27			0.26			0.25
Net realized and unrealized
gains (losses) on investments		0.58			0.46			(0.21	)		0.04			0.06
Total from investment operations		0.83			0.75			0.06			0.30			0.31
Less distributions:
Distributions from
net investment income		(0.25	)		(0.28	)		(0.27	)		(0.26	)		(0.25	)
Distributions from net realized gains		(0.16	)		—			—			(0.00	)(2)		(0.02	)
Total distributions		(0.41	)		(0.28	)		(0.27	)		(0.26	)		(0.27	)
Net asset value, end of year	$	11.69		$	11.27		$	10.80		$	11.01		$	10.97
Total return		7.42	%		7.05	%		0.58	%		2.74	%		2.83	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	5,264.4		$	4,342.1		$	3,264.9		$	2,902.0		$	2,209.1
Ratio of expenses to average net assets		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income
to average net assets		2.17	%		2.57	%		2.51	%		2.32	%		2.21	%
Portfolio turnover rate(3)		37	%		26	%		32	%		31	%		30	%

(1)	Calculated using average shares outstanding during the year.
(2)	Amount is less than $0.005.
(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.

The accompanying notes are an integral part of these financial statements.

Page 474

Financial Highlights

Baird Intermediate Bond Fund – Investor Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	11.80		$	11.29		$	11.50		$	11.44		$	11.39
Income from investment operations:
Net investment income(1)		0.23			0.27			0.25			0.24			0.23
Net realized and unrealized
gains (losses) on investments		0.61			0.50			(0.22	)		0.04			0.06
Total from investment operations		0.84			0.77			0.03			0.28			0.29
Less distributions:
Distributions from
net investment income		(0.22	)		(0.26	)		(0.24	)		(0.22	)		(0.22	)
Distributions from net realized gains		(0.16	)		—			—			(0.00	)(2)		(0.02	)
Total distributions		(0.38	)		(0.26	)		(0.24	)		(0.22	)		(0.24	)
Net asset value, end of year	$	12.26		$	11.80		$	11.29		$	11.50		$	11.44
Total return		7.16	%		6.83	%		0.30	%		2.53	%		2.55	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	55.2		$	52.2		$	47.3		$	53.9		$	98.1
Ratio of expenses to average net assets		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Ratio of net investment income
to average net assets		1.92	%		2.32	%		2.26	%		2.07	%		1.96	%
Portfolio turnover rate(3)		37	%		26	%		32	%		31	%		30	%

(1)	Calculated using average shares outstanding during the year.
(2)	Amount is less than $0.005.
(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.

The accompanying notes are an integral part of these financial statements.

Page 475

Financial Highlights

Baird Aggregate Bond Fund – Institutional Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	11.21		$	10.53		$	10.87		$	10.70		$	10.61
Income from investment operations:
Net investment income(1)		0.25			0.30			0.29			0.26			0.25
Net realized and unrealized
gains (losses) on investments		0.71			0.69			(0.33	)		0.19			0.12
Total from investment operations		0.96			0.99			(0.04	)		0.45			0.37
Less distributions:
Distributions from
net investment income		(0.27	)		(0.31	)		(0.30	)		(0.28	)		(0.26	)
Distributions from net realized gains		(0.13	)		—			—			—			(0.02	)
Total distributions		(0.40	)		(0.31	)		(0.30	)		(0.28	)		(0.28	)
Net asset value, end of year	$	11.77		$	11.21		$	10.53		$	10.87		$	10.70
Total return		8.63	%		9.48	%		(0.30	)%		4.20	%		3.52	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	31,874.6		$	21,857.4		$	14,897.5		$	13,582.8		$	9,769.9
Ratio of expenses to average net assets		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income
to average net assets		2.13	%		2.74	%		2.77	%		2.40	%		2.25	%
Portfolio turnover rate(2)		35	%		31	%		24	%		28	%		36	%

(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.

The accompanying notes are an integral part of these financial statements.

Page 476

Financial Highlights

Baird Aggregate Bond Fund – Investor Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	11.60		$	10.89		$	11.23		$	11.05		$	10.94
Income from investment operations:
Net investment income(1)		0.23			0.28			0.27			0.24			0.23
Net realized and unrealized
gains (losses) on investments		0.74			0.71			(0.33	)		0.19			0.14
Total from investment operations		0.97			0.99			(0.06	)		0.43			0.37
Less distributions:
Distributions from
net investment income		(0.24	)		(0.28	)		(0.28	)		(0.25	)		(0.24	)
Distributions from net realized gains		(0.13	)		—			—			—			(0.02	)
Total distributions		(0.37	)		(0.28	)		(0.28	)		(0.25	)		(0.26	)
Net asset value, end of year	$	12.20		$	11.60		$	10.89		$	11.23		$	11.05
Total return		8.42	%		9.17	%		(0.54	)%		3.90	%		3.34	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	1,029.0		$	786.4		$	718.2		$	825.4		$	809.1
Ratio of expenses to average net assets		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Ratio of net investment income
to average net assets		1.88	%		2.49	%		2.52	%		2.15	%		2.00	%
Portfolio turnover rate(2)		35	%		31	%		24	%		28	%		36	%

(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.

The accompanying notes are an integral part of these financial statements.

Page 477

Financial Highlights

Baird Core Plus Bond Fund – Institutional Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	11.56		$	10.82		$	11.22		$	11.03		$	10.85
Income from investment operations:
Net investment income(1)		0.29			0.33			0.33			0.30			0.29
Net realized and unrealized
gains (losses) on investments		0.72			0.75			(0.39	)		0.21			0.22
Total from investment operations		1.01			1.08			(0.06	)		0.51			0.51
Less distributions:
Distributions from
net investment income		(0.31	)		(0.34	)		(0.34	)		(0.32	)		(0.31	)
Distributions from net realized gains		(0.12	)		—			—			—			(0.02	)
Total distributions		(0.43	)		(0.34	)		(0.34	)		(0.32	)		(0.33	)
Net asset value, end of year	$	12.14		$	11.56		$	10.82		$	11.22		$	11.03
Total return		8.80	%		10.11	%		(0.51	)%		4.65	%		4.73	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	26,805.5		$	21,424.9		$	15,635.3		$	13,920.2		$	10,023.6
Ratio of expenses to average net assets		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income
to average net assets		2.46	%		2.95	%		3.01	%		2.68	%		2.61	%
Portfolio turnover rate(2)		33	%		26	%		26	%		30	%		33	%

(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.

The accompanying notes are an integral part of these financial statements.

Page 478

Financial Highlights

Baird Core Plus Bond Fund – Investor Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	12.05		$	11.28		$	11.68		$	11.46		$	11.26
Income from investment operations:
Net investment income(1)		0.28			0.32			0.31			0.28			0.27
Net realized and unrealized
gains (losses) on investments		0.74			0.76			(0.40	)		0.23			0.23
Total from investment operations		1.02			1.08			(0.09	)		0.51			0.50
Less distributions:
Distributions from
net investment income		(0.28	)		(0.31	)		(0.31	)		(0.29	)		(0.28	)
Distributions from net realized gains		(0.11	)		—			—			—			(0.02	)
Total distributions		(0.39	)		(0.31	)		(0.31	)		(0.29	)		(0.30	)
Net asset value, end of year	$	12.68		$	12.05		$	11.28		$	11.68		$	11.46
Total return		8.58	%		9.69	%		(0.74	)%		4.47	%		4.47	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	2,684.3		$	2,500.0		$	2,171.0		$	2,431.0		$	2,881.8
Ratio of expenses to average net assets		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Ratio of net investment income
to average net assets		2.21	%		2.70	%		2.76	%		2.43	%		2.36	%
Portfolio turnover rate(2)		33	%		26	%		26	%		30	%		33	%

(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.

The accompanying notes are an integral part of these financial statements.

Page 479

Financial Highlights

Baird Short-Term Municipal Bond Fund – Institutional Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	10.26		$	10.06		$	10.08		$	9.97		$	10.04
Income from investment operations:
Net investment income(1)		0.17			0.20			0.20			0.18			0.15
Net realized and unrealized
gains (losses) on investments		0.16			0.20			(0.03	)		0.10			(0.08	)
Total from investment operations		0.33			0.40			0.17			0.28			0.07
Less distributions:
Distributions from
net investment income		(0.16	)		(0.20	)		(0.19	)		(0.17	)		(0.14	)
Distributions from net realized gains		—			—			(0.00	)(2)		(0.00	)(2)		(0.00	)(2)
Total distributions		(0.16	)		(0.20	)		(0.19	)		(0.17	)		(0.14	)
Net asset value, end of year	$	10.43		$	10.26		$	10.06		$	10.08		$	9.97
Total return		3.25	%		3.96	%		1.75	%		2.84	%		0.71	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	1,520.0		$	926.1		$	281.2		$	120.9		$	52.4
Ratio of expenses to average net assets		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income
to average net assets		1.61	%		1.96	%		2.03	%		1.74	%		1.44	%
Portfolio turnover rate(3)		32	%		34	%		107	%		54	%		38	%

(1)	Calculated using average shares outstanding during the year.
(2)	Amount is less than $0.005.
(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.

The accompanying notes are an integral part of these financial statements.

Page 480

Financial Highlights

Baird Short-Term Municipal Bond Fund – Investor Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	10.25		$	10.04		$	10.06		$	9.96		$	10.04
Income from investment operations:
Net investment income(1)		0.14			0.17			0.18			0.15			0.12
Net realized and unrealized
gains (losses) on investments		0.15			0.21			(0.03	)		0.09			(0.08	)
Total from investment operations		0.29			0.38			0.15			0.24			0.04
Less distributions:
Distributions from
net investment income		(0.13	)		(0.17	)		(0.17	)		(0.14	)		(0.12	)
Distributions from net realized gains		—			—			(0.00	)(2)		(0.00	)(2)		(0.00	)(2)
Total distributions		(0.13	)		(0.17	)		(0.17	)		(0.14	)		(0.12	)
Net asset value, end of year	$	10.41		$	10.25		$	10.04		$	10.06		$	9.96
Total return		2.90	%		3.81	%		1.52	%		2.45	%		0.40	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	92.2		$	89.6		$	64.0		$	4.9		$	6.3
Ratio of expenses to average net assets		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Ratio of net investment income
to average net assets		1.36	%		1.71	%		1.78	%		1.49	%		1.19	%
Portfolio turnover rate(3)		32	%		34	%		107	%		54	%		38	%

(1)	Calculated using average shares outstanding during the year.
(2)	Amount is less than $0.005.
(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.

The accompanying notes are an integral part of these financial statements.

Page 481

Financial Highlights

Baird Strategic Municipal Bond Fund – Institutional Class

	Year Ended			Period Ended
	December 31, 2020			December 31, 2019(1)
Per Share Data:
Net asset value, beginning of period	$	10.07		$	10.00
Income from investment operations:
Net investment income(2)		0.18			0.02
Net realized and unrealized gain on investments		0.66			0.07
Total from investment operations		0.84			0.09
Less distributions:
Distributions from net investment income		(0.17	)		(0.02	)
Distributions from net realized gains		(0.07	)		—
Total distributions		(0.24	)		(0.02	)
Net asset value, end of period	$	10.67		$	10.07
Total return		8.39	%		0.88	%(3)
Supplemental data and ratios:
Net assets, end of period (millions)	$	164.3		$	12.0
Ratio of expenses to average net assets		0.30	%		0.30	%(4)
Ratio of net investment income to average net assets		1.72	%		1.60	%(4)
Portfolio turnover rate(5)		119	%		47	%(3)

(1)	Inception was close of business on November 15, 2019.
(2)	Calculated using average shares outstanding during the period.
(3)	Not annualized.
(4)	Annualized.
(5)	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.

The accompanying notes are an integral part of these financial statements.

Page 482

Financial Highlights

Baird Strategic Municipal Bond Fund – Investor Class

	Year Ended			Period Ended
	December 31, 2020			December 31, 2019(1)
Per Share Data:
Net asset value, beginning of period	$	10.07		$	10.00
Income from investment operations:
Net investment income(2)		0.15			0.02
Net realized and unrealized gain on investments		0.67			0.06
Total from investment operations		0.82			0.08
Less distributions:
Distributions from net investment income		(0.15	)		(0.01	)
Distributions from net realized gains		(0.07	)		—
Total distributions		(0.22	)		(0.01	)
Net asset value, end of period	$	10.67		$	10.07
Total return		8.13	%		0.85	%(3)
Supplemental data and ratios:
Net assets, end of period (thousands)	$	6,976.1		$	27.4
Ratio of expenses to average net assets		0.55	%		0.55	%(4)
Ratio of net investment income to average net assets		1.47	%		1.35	%(4)
Portfolio turnover rate(5)		119	%		47	%(3)

(1)	Inception was close of business on November 15, 2019.
(2)	Calculated using average shares outstanding during the period.
(3)	Not annualized.
(4)	Annualized.
(5)	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.

The accompanying notes are an integral part of these financial statements.

Page 483

Financial Highlights

Baird Quality Intermediate Municipal Bond Fund – Institutional Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	11.75		$	11.38		$	11.52		$	11.43		$	11.74
Income from investment operations:
Net investment income(1)		0.24			0.27			0.27			0.27			0.26
Net realized and unrealized
gains (losses) on investments		0.28			0.37			(0.14	)		0.09			(0.31	)
Total from investment operations		0.52			0.64			0.13			0.36			(0.05	)
Less distributions:
Distributions from
net investment income		(0.24	)		(0.27	)		(0.27	)		(0.27	)		(0.26	)
Distributions from return of capital		—			—			—			(0.00	)(2)		—
Total distributions		(0.24	)		(0.27	)		(0.27	)		(0.27	)		(0.26	)
Net asset value, end of year	$	12.03		$	11.75		$	11.38		$	11.52		$	11.43
Total return		4.43	%		5.65	%		1.19	%		3.12	%		(0.46	)%
Supplemental data and ratios:
Net assets, end of year (millions)	$	1,449.2		$	1,257.4		$	1,009.2		$	1,044.1		$	936.2
Ratio of expenses to average net assets		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income
to average net assets		2.03	%		2.30	%		2.39	%		2.29	%		2.19	%
Portfolio turnover rate(3)		15	%		20	%		40	%		31	%		22	%

(1)	Calculated using average shares outstanding during the year.
(2)	Amount is less than $0.005.
(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.

The accompanying notes are an integral part of these financial statements.

Page 484

Financial Highlights

Baird Quality Intermediate Municipal Bond Fund – Investor Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	12.04		$	11.66		$	11.80		$	11.69		$	12.00
Income from investment operations:
Net investment income(1)		0.22			0.24			0.25			0.24			0.23
Net realized and unrealized
gains (losses) on investments		0.29			0.38			(0.15	)		0.11			(0.31	)
Total from investment operations		0.51			0.62			0.10			0.35			(0.08	)
Less distributions:
Distributions from
net investment income		(0.21	)		(0.24	)		(0.24	)		(0.24	)		(0.23	)
Distributions from return of capital		—			—			—			(0.00	)(2)		—
Total distributions		(0.21	)		(0.24	)		(0.24	)		(0.24	)		(0.23	)
Net asset value, end of year	$	12.34		$	12.04		$	11.66		$	11.80		$	11.69
Total return		4.23	%		5.33	%		0.90	%		2.97	%		(0.70	)%
Supplemental data and ratios:
Net assets, end of year (millions)	$	52.4		$	85.1		$	110.8		$	107.3		$	136.1
Ratio of expenses to average net assets		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Ratio of net investment income
to average net assets		1.78	%		2.05	%		2.14	%		2.00	%		1.94	%
Portfolio turnover rate(3)		15	%		20	%		40	%		31	%		22	%

(1)	Calculated using average shares outstanding during the year.
(2)	Amount is less than $0.005.
(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.

The accompanying notes are an integral part of these financial statements.

Page 485

Financial Highlights

Baird Core Intermediate Municipal Bond Fund – Institutional Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	10.65		$	10.22		$	10.32		$	10.01		$	10.13
Income from investment operations:
Net investment income(1)		0.23			0.25			0.23			0.21			0.18
Net realized and unrealized
gains (losses) on investments		0.33			0.43			(0.10	)		0.30			(0.05	)
Total from investment operations		0.56			0.68			0.13			0.51			0.13
Less distributions:
Distributions from
net investment income		(0.22	)		(0.24	)		(0.23	)		(0.20	)		(0.18	)
Distributions from net realized gains		(0.03	)		(0.01	)		—			—			(0.07	)
Total distributions		(0.25	)		(0.25	)		(0.23	)		(0.20	)		(0.25	)
Net asset value, end of year	$	10.96		$	10.65		$	10.22		$	10.32		$	10.01
Total return		5.26	%		6.75	%		1.30	%		5.15	%		1.14	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	842.2		$	535.5		$	378.1		$	234.8		$	96.3
Ratio of expenses to average net assets		0.30	%		0.30	%		0.30	%		0.30	%		0.30	%
Ratio of net investment income
to average net assets		2.09	%		2.36	%		2.30	%		2.04	%		1.79	%
Portfolio turnover rate(2)		35	%		38	%		70	%		66	%		95	%

(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.

The accompanying notes are an integral part of these financial statements.

Page 486

Financial Highlights

Baird Core Intermediate Municipal Bond Fund – Investor Class

	Year Ended December 31,
	2020			2019			2018			2017			2016
Per Share Data:
Net asset value, beginning of year	$	10.64		$	10.22		$	10.32		$	10.00		$	10.13
Income from investment operations:
Net investment income(1)		0.20			0.22			0.21			0.18			0.16
Net realized and unrealized
gains (losses) on investments		0.33			0.43			(0.11	)		0.32			(0.06	)
Total from investment operations		0.53			0.65			0.10			0.50			0.10
Less distributions:
Distributions from
net investment income		(0.19	)		(0.22	)		(0.20	)		(0.18	)		(0.16	)
Distributions from net realized gains		(0.03	)		(0.01	)		—			—			(0.07	)
Total distributions		(0.22	)		(0.23	)		(0.20	)		(0.18	)		(0.23	)
Net asset value, end of year	$	10.95		$	10.64		$	10.22		$	10.32		$	10.00
Total return		5.01	%		6.40	%		1.05	%		5.00	%		0.91	%
Supplemental data and ratios:
Net assets, end of year (millions)	$	22.3		$	5.9		$	2.0		$	1.7		$	1.4
Ratio of expenses to average net assets		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Ratio of net investment income
to average net assets		1.84	%		2.11	%		2.05	%		1.79	%		1.54	%
Portfolio turnover rate(2)		35	%		38	%		70	%		66	%		95	%

(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.

The accompanying notes are an integral part of these financial statements.

Page 487

Financial Highlights

Baird Municipal Bond Fund – Institutional Class

	Year Ended			Period Ended
	December 31, 2020			December 31, 2019(1)
Per Share Data:
Net asset value, beginning of period	$	10.10		$	10.00
Income from investment operations:
Net investment income(2)		0.23			0.02
Net realized and unrealized gain on investments		0.76			0.10
Total from investment operations		0.99			0.12
Less distributions:
Distributions from net investment income		(0.21	)		(0.02	)
Distributions from net realized gains		(0.21	)		—
Total distributions		(0.42	)		(0.02	)
Net asset value, end of period	$	10.67		$	10.10
Total return		9.95	%		1.19	%(3)
Supplemental data and ratios:
Net assets, end of period (millions)	$	20.3		$	7.4
Ratio of expenses to average net assets		0.30	%		0.30	%(4)
Ratio of net investment income to average net assets		2.20	%		1.69	%(4)
Portfolio turnover rate(5)		124	%		46	%(3)

(1)	Inception was close of business on November 15, 2019.
(2)	Calculated using average shares outstanding during the period.
(3)	Not annualized.
(4)	Annualized.
(5)	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.

The accompanying notes are an integral part of these financial statements.

Page 488

Financial Highlights

Baird Municipal Bond Fund – Investor Class

	Year Ended			Period Ended
	December 31, 2020			December 31, 2019(1)
Per Share Data:
Net asset value, beginning of period	$	10.10		$	10.00
Income from investment operations:
Net investment income(2)		0.21			0.02
Net realized and unrealized gain on investments		0.75			0.10
Total from investment operations		0.96			0.12
Less distributions:
Distributions from net investment income		(0.19	)		(0.02	)
Distributions from net realized gains		(0.21	)		—
Total distributions		(0.40	)		(0.02	)
Net asset value, end of period	$	10.66		$	10.10
Total return		9.58	%		1.16	%(3)
Supplemental data and ratios:
Net assets, end of period (thousands)	$	1,624.8		$	29.1
Ratio of expenses to average net assets		0.55	%		0.55	%(4)
Ratio of net investment income to average net assets		1.95	%		1.44	%(4)
Portfolio turnover rate(5)		124	%		46	%(3)

(1)	Inception was close of business on November 15, 2019.
(2)	Calculated using average shares outstanding during the period.
(3)	Not annualized.
(4)	Annualized.
(5)	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.

The accompanying notes are an integral part of these financial statements.

Page 489

Notes to the Financial Statements

December 31, 2020

1. Organization

Baird Funds, Inc. (the “Corporation”) was incorporated on June 9, 2000, as a Wisconsin corporation and is registered as an open-end investment management company under the Investment Company Act of 1940, as amended (the “1940 Act”).  The accompanying financial statements include the Baird Ultra Short Bond Fund, Baird Short-Term Bond Fund, Baird Intermediate Bond Fund, Baird Aggregate Bond Fund, Baird Core Plus Bond Fund, Baird Short-Term Municipal Bond Fund, Baird Strategic Municipal Bond Fund, Baird Quality Intermediate Municipal Bond Fund, Baird Core Intermediate Municipal Bond Fund and Baird Municipal Bond Fund (each, a “Fund” and collectively, the “Funds”), ten of the sixteen active funds in the series comprising the Corporation, each of which is diversified within the meaning of the 1940 Act.  Robert W. Baird & Co. Incorporated (“Baird” or the “Advisor”) serves as investment advisor to the Funds.  The Funds are investment companies and therefore follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following table presents the class-specific inception dates for each of the Funds:

	Inception Date
Fund	Institutional Class	Investor Class
Baird Ultra Short Bond Fund	December 31, 2013	December 31, 2013
Baird Short-Term Bond Fund	August 31, 2004	September 19, 2012
Baird Intermediate Bond Fund	September 29, 2000	September 29, 2000
Baird Aggregate Bond Fund	September 29, 2000	September 29, 2000
Baird Core Plus Bond Fund	September 29, 2000	September 29, 2000
Baird Short-Term Municipal Bond Fund	August 31, 2015	August 31, 2015
Baird Strategic Municipal Bond Fund	November 15, 2019	November 15, 2019
Baird Quality Intermediate Municipal Bond Fund	March 30, 2001	March 30, 2001
Baird Core Intermediate Municipal Bond Fund	August 31, 2015	August 31, 2015
Baird Municipal Bond Fund	November 15, 2019	November 15, 2019

Institutional Class shares are not subject to a distribution and service (12b-1) fee, while Investor Class shares are subject to a distribution and service (12b-1) fee of 0.25%.  See Note 7.

The investment objective of the Baird Ultra Short Bond Fund is to seek current income consistent with preservation of capital.  The Fund’s benchmark index, the Bloomberg Barclays U.S. Short-Term Government/Corporate Index, is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government and corporate securities, with maturities less than one year.

The investment objective of the Baird Short-Term Bond Fund is to seek an annual rate of total return, before Fund expenses, greater than the annual rate of total return of the Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index. The Bloomberg Barclays 1-3 Year U.S. Government/Credit Bond Index is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government and corporate securities, with maturities between one and three years.

The investment objective of the Baird Intermediate Bond Fund is to seek an annual rate of total return, before Fund expenses, greater than the annual rate of total return of the Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index.  The Bloomberg Barclays Intermediate U.S. Government/Credit Bond Index is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government and corporate securities, with maturities between one and ten years.

The investment objective of the Baird Aggregate Bond Fund is to seek an annual rate of total return, before Fund expenses, greater than the annual rate of total return of the Bloomberg Barclays U.S. Aggregate Bond Index.  The Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged, market value weighted index of investment grade, fixed-rate debt issues, including government, corporate, asset-backed and mortgage-backed securities, with maturities of at least one year.

Page 490

Notes to the Financial Statements

December 31, 2020

1. Organization (cont.)

The investment objective of the Baird Core Plus Bond Fund is to seek an annual rate of total return, before Fund expenses, greater than the annual rate of total return of the Bloomberg Barclays U.S. Universal Bond Index. The Bloomberg Barclays U.S. Universal Bond Index is an unmanaged, market value weighted index of fixed income securities issued in U.S. dollars, including U.S. government and investment grade debt, non-investment grade debt, asset-backed and mortgage-backed securities, Eurobonds, 144A securities and emerging market debt, with maturities of at least one year.

The investment objective of the Baird Short-Term Municipal Bond Fund is to seek current income that is exempt from federal income tax and is consistent with the preservation of capital.

The investment objective of the Baird Strategic Municipal Bond Fund is to seek a high level of current income that is exempt from federal income tax and is consistent with preservation of capital.

The primary investment objective of the Baird Quality Intermediate Municipal Bond Fund is to seek current income that is substantially exempt from federal income tax.  A secondary objective is to seek total return with relatively low volatility of principal.

The investment objective of the Baird Core Intermediate Municipal Bond Fund is to seek a high level of current income that is exempt from federal income tax and is consistent with preservation of capital.

The investment objective of the Baird Municipal Bond Fund is to seek a high level of current income that is exempt from federal income tax and is consistent with preservation of capital.

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the 1940 Act. On December 31, 2020, entities affiliated with the Advisor held 25.4% of the Baird Municipal Bond Fund.

2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements.  These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

a)	Investment Valuation – Section 2(a)(41) of the 1940 Act, together with the rules and interpretations of the U.S. Securities and Exchange Commission (the “SEC”), require the Funds, in computing net asset value, to value their portfolio securities using market quotations when they are “readily available.”  When market quotations are not readily available (e.g., because there is no regular market quotation for such securities, the market for such security is limited, the validity of quotations is questionable or the Funds’ independent pricing service does not provide a price), the Board of Directors (the “Board”) of the Corporation is responsible for ensuring the securities are valued at “fair value determined in good faith.”  The Board has delegated such responsibility to the Advisor pursuant to pricing policies and procedures that the Board has adopted and regularly reviews. In general, the “fair value” of a security means the price that would be received to sell a security in an orderly transaction between market participants at the measurement date.
	The Funds determine the fair value of their investments and compute their net asset value per share as of the close of regular trading of the New York Stock Exchange (generally, 4:00 p.m. ET).
	Consistent with Section 2(a)(41) of the 1940 Act, the Funds price their securities as follows:  debt securities are valued at their evaluated bid prices as provided by an independent pricing service using valuation methods that are designed to represent fair value, such as matrix pricing and other analytical pricing models, market transactions and dealer quotations.  Debt securities purchased with maturities of 60 days or less are valued as described above unless an evaluated price is not available, in which case such security is valued at acquisition cost, plus or minus any amortized discount or premium (“amortized cost”), or, if the Advisor does not believe amortized cost is reflective of the fair value of the security, the security is priced at fair value as described below.  Investments in mutual funds, including money market funds, are valued at their stated net asset value (“NAV”).  Common stocks that are listed on a securities exchange (other than NASDAQ) are valued at the last quoted sales price.  Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price.  Price information on listed stocks is taken

Page 491

Notes to the Financial Statements

December 31, 2020

2.	Significant Accounting Policies (cont.)
	from the exchange where the security is primarily traded.  Securities that were not traded on the valuation date, as well as stocks that are not listed on an exchange, including NASDAQ, are valued at the average of the current bid and ask price.  Other assets and securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Advisor in accordance with procedures approved by the Corporation’s Board.  In accordance with such procedures, the Advisor may, under certain circumstances, use alternative valuation methodologies, or it may use broker quotes or prices obtained from alternative independent pricing services or, if broker quotes or prices from alternative pricing services are unavailable or deemed to be unreliable, fair value will be determined by a valuation committee of the Advisor.  In determining fair value, the valuation committee takes into account factors deemed relevant by the valuation committee and available information.  Consequently, the price of the security used by a Fund to calculate its NAV may differ from quoted or published prices for the same security.  Fair value pricing involves subjective judgments and there is no single standard for determining a security’s fair value.  As a result, different mutual funds could reasonably arrive at a different fair value for the same security.  It is possible that the fair value determined for a security is materially different from the value that could be realized upon the sale of that security or from the values that other mutual funds may determine.  The prices determined for any individual security on any given day may vary significantly from the amount that can be obtained in an actual sale of that security, and the Funds’ NAVs may fluctuate significantly from day to day or from period to period.
b)	Securities Purchased on a When-Issued, Delayed Delivery or Forward Commitment Basis – Each Fund may purchase securities on a when-issued, delayed delivery or forward commitment basis. When-issued, delayed delivery and forward commitment transactions involve the risk that the price or yield obtained in a transaction may be more or less favorable than the price or yield available in the market when delivery takes place. At the time a Fund makes a commitment to purchase a security, the Fund records the transaction and reflects the value of the security in determining net asset value. Each Fund designates and maintains cash and/or marketable securities at least equal in value to commitments for when-issued, delayed delivery or forward commitment securities.
c)	Unregistered Securities – The Funds own certain investment securities which are unregistered.  All of the unregistered securities held by the Funds as of December 31, 2020 consist of securities issued pursuant to Rule 144A under the Securities Act of 1933 and all have been classified as liquid under the Funds’ liquidity risk management program.
	The value of such securities for the Funds is as follows:

Fund	Value		% of Net Assets
Baird Ultra Short Bond Fund	$	788,386,993		17.22	%
Baird Short-Term Bond Fund		2,052,327,466		22.85	%
Baird Intermediate Bond Fund		824,717,333		15.50	%
Baird Aggregate Bond Fund		5,236,253,267		15.91	%
Baird Core Plus Bond Fund		5,713,026,639		19.37	%
Baird Short-Term Municipal Bond Fund		72,935,626		4.52	%
Baird Strategic Municipal Bond Fund		22,740,569		13.27	%
Baird Quality Intermediate Municipal Bond Fund		7,398,312		0.49	%
Baird Core Intermediate Municipal Bond Fund		48,599,022		5.62	%
Baird Municipal Bond Fund		2,508,951		11.46	%

d) Foreign Securities – For purposes of these financial statements, foreign securities are defined as securities of issuers that are organized outside the United States. The Funds may invest in U.S. dollar-denominated debt obligations of foreign companies and foreign governments. Investing in securities of foreign companies and foreign governments involves special risks and considerations not typically associated with investing in U.S. companies and the U.S. government.  These risks include foreign currency fluctuations, political and economic instability and differences in financial reporting standards and less strict regulation of securities markets.  Moreover, securities of many foreign companies and foreign governments and their markets may

Page 492

Notes to the Financial Statements

December 31, 2020

2.	Significant Accounting Policies (cont.)
	be less liquid and their prices more volatile than those of securities of comparable U.S. companies and the U.S. government. Occasionally, events that affect these values and exchange rates may occur after the close of the exchange on which such securities are traded.  If such events materially affect the value of a Fund’s securities, these securities may be valued at their fair value pursuant to procedures adopted by the Board.
e)	Financial Derivative Instruments – Financial derivative instruments, such as futures contracts, derive their value from underlying asset prices, indices, reference rates and other inputs or a combination of these factors. These contracts are normally valued on the basis of broker-dealer quotations or a pricing service at the settlement price determined by the relevant exchange. Depending on the product and the terms of the transaction, the value of the derivative contracts can be estimated by a pricing service provider using a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves, dividends and exchange rates. Futures contracts are carried at fair value using the primary exchange’s closing (settlement) price and are generally categorized in Level 1.
f)	Deposits with Broker – When trading derivative instruments, such as futures contracts, a Fund is only required to post initial or variation margin with the exchange or clearing broker. The use of margin in trading these instruments has the effect of creating leverage, which can expose the Fund to substantial gains or losses occurring from relatively small price changes in the value of the underlying instrument and can increase the volatility of the Fund’s returns.
	Upon entering into a futures contract, and to maintain the Fund’s open positions in futures contracts, the Fund is required to deposit with its custodian or futures broker in a segregated account in the name of the futures broker an amount of cash, U.S. government securities, suitable money market instruments, or other liquid securities, known as “initial margin.” The margin required for a particular futures contract is set by the exchange on which the contract is traded and may be significantly modified from time to time by the exchange during the term of the contract. Futures contracts are customarily purchased and sold on margins that may range upward from less than 5% of the value of the contract being traded.
	At December 31, 2020, the Baird Strategic Municipal Bond Fund had $3,695 in cash and cash equivalents on deposit with the broker for futures contracts which is presented on the Fund’s Statement of Assets and Liabilities.
	If the price of an open futures contract changes (by increase in underlying instrument or index in the case of a sale or by decrease in the case of a purchase) so that the loss on the futures contract reaches a point at which the margin on deposit does not satisfy margin requirements, the broker will require an increase in the margin. However, if the value of a position increases because of favorable price changes in the futures contract so that the margin deposit exceeds the required margin, the broker will pay the excess to the Fund.
	These subsequent payments, called “variation margin,” to and from the futures broker are made on a daily basis as the price of the underlying assets fluctuate making the long and short positions in the futures contract more or less valuable, a process known as “marking to the market.” At period end, the variation margin is shown as either a receivable or payable on the Fund’s Statement of Assets and Liabilities. The Fund expects to earn interest income on any margin deposits. At December 31, 2020, the Fund had no open positions in futures contracts and therefore there was no variation margin presented on the Fund's Statement of Assets and Liabilities.
g)	Income Tax Status – The Funds intend to continue to qualify as regulated investment companies as provided in Subchapter M of the Internal Revenue Code and to distribute substantially all of their taxable income to their shareholders in a manner which results in no tax expense to the Funds.  Therefore, no federal income or excise tax provision is recorded.
	There is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken on the tax return for the fiscal year ended December 31, 2020, or for any other tax years which are open for exam. As of December 31, 2020, open tax years include the tax years ended December 31, 2017 through 2020. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly

Page 493

Notes to the Financial Statements

December 31, 2020

2.	Significant Accounting Policies (cont.)
	change in the next 12 months. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as interest and other expense, respectively, in the Statement of Operations. During the period, the Funds did not incur any interest or penalties.
h)	Allocation of Income and Expenses – Each Fund is charged for those expenses directly attributable to it.  Expenses directly attributable to a class of shares, such as Rule 12b-1 distribution fees, are charged to that class of shares.  Income, expenses and realized and unrealized gains and losses are allocated to the classes based on their respective net assets.  Expenses that are not directly attributable to a Fund are allocated among the Funds in the series in proportion to their assets or are divided equally amongst the Funds.
i)	Shareholder Transactions and Distributions – Shareholder transactions are recorded on the trade date. Dividends from net investment income are declared and paid monthly.  Distributions of net realized capital gains, if any, are declared and paid at least annually.  All distributions to shareholders are recorded on the ex-dividend date.  The book basis character of distributions may differ from their ultimate characterization for Federal income tax purposes.  GAAP requires that permanent financial reporting and tax differences be reclassified in the capital accounts.
j)	Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period.  Actual results could differ from those estimates.
k)	Securities Transactions and Investment Income – Investment transactions are recorded on the trade date.  The Funds determine the gain or loss realized from investment transactions using the identified cost basis.  Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis.  Premiums and discounts on the purchase of securities are amortized/accreted using the effective interest method.  Paydown gains and losses are recorded as interest income on the Statements of Operations for financial reporting purposes.
l)	Guarantees and Indemnifications – In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses.  The Funds’ maximum exposure under these arrangements is unknown and would involve future claims against the Funds that have not yet occurred.  Based on experience, the Funds would expect the risk of loss to be remote.
m)	New Accounting Pronouncements – In March 2020, FASB issued Accounting Standards Update 2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The main objective of ASU 2020-04 is to provide relief to companies that will be impacted by the expected change in benchmark interest rates at the end of 2021, when participating banks will no longer be required to submit London Inter-bank Offered Rate (“LIBOR”) quotes by the UK Financial Conduct Authority. ASU 2020-04 allows companies to, provided the only change to existing contracts are a change to an approved benchmark interest rate, account for modifications as a continuance of the existing contract without additional analysis. In addition, derivative contracts that qualified for hedge accounting prior to modification, will be allowed to continue to receive such treatment, even if critical terms change due to a change in the benchmark interest rate. For new and existing contracts, the Funds may elect to apply the amendments as of March 12, 2020 through December 31, 2022. Management is currently assessing the impact of the adoption of ASU 2020-04 to the Funds’ financial statements and various filings.
n)	Other Matters – The global outbreak of COVID-19 (commonly referred to as “coronavirus”) has disrupted economic markets and the prolonged economic impact is uncertain.  The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The operational and financial performance of the issuers of securities in which the Funds invest depends on future developments, including the duration and spread of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the Funds’ investments, impair the Funds’ ability to satisfy redemption requests, and negatively impact the Funds’ performance.

Page 494

Notes to the Financial Statements

December 31, 2020

3. Capital Share Transactions

The following table summarizes the capital share transactions of each Fund for the past two fiscal periods:

Baird Ultra Short Bond Fund

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		462,621,401		$	4,663,501,345			152,736,068		$	1,536,105,216
Shares issued to shareholders
in reinvestment of distributions		3,564,569			35,891,156			3,599,353			36,181,617
Shares redeemed		(193,156,605	)		(1,944,377,181	)		(90,279,310	)		(908,254,883	)
Net increase		273,029,365		$	2,755,015,320			66,056,111		$	664,031,950
Shares Outstanding:
Beginning of year		169,147,382						103,091,271
End of year		442,176,747						169,147,382
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		49,156,046		$	494,152,300			4,021,429		$	40,414,010
Shares issued to shareholders
in reinvestment of distributions		96,822			973,660			52,962			532,130
Shares redeemed		(40,343,759	)		(405,489,395	)		(2,397,279	)		(24,095,105	)
Net increase		8,909,109		$	89,636,565			1,677,112		$	16,851,035
Shares Outstanding:
Beginning of year		3,234,242						1,557,130
End of year		12,143,351						3,234,242
Total net increase				$	2,844,651,885					$	680,882,985
Baird Short-Term Bond Fund
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		463,915,266		$	4,586,770,494			289,867,873	(1)	$	2,810,969,343	(1)
Shares issued to shareholders
in reinvestment of distributions		18,915,873			187,082,769			15,016,743			145,886,802
Shares redeemed		(258,354,649	)		(2,542,726,663	)		(227,421,040	)		(2,212,086,535	)
Net increase		224,476,490		$	2,231,126,600			77,463,576		$	744,769,610
Shares Outstanding:
Beginning of year		662,075,927						584,612,351
End of year		886,552,417						662,075,927

Page 495

Notes to the Financial Statements

December 31, 2020

3.      Capital Share Transactions (cont.)

Baird Short-Term Bond Fund (cont.)

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		13,605,960		$	134,775,633			9,981,756		$	96,608,185
Shares issued to shareholders
in reinvestment of distributions		422,979			4,181,149			391,693			3,804,746
Shares redeemed		(13,255,473	)		(130,744,279	)		(6,853,659	)		(66,573,681	)
Net increase		773,466		$	8,212,503			3,519,790		$	33,839,250
Shares Outstanding:
Beginning of year		18,669,294						15,149,504
End of year		19,442,760						18,669,294
Total net increase				$	2,239,339,103					$	778,608,860

⁽¹⁾  Includes purchase in-kind transactions. See additional information contained in this Note.

Baird Intermediate Bond Fund

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		131,066,832		$	1,530,910,134			124,549,008	(1)	$	1,378,094,146	(1)
Shares issued to shareholders
in reinvestment of distributions		12,766,632			148,834,233			7,767,687			86,611,493
Shares redeemed		(78,696,908	)		(912,589,791	)		(49,521,814	)		(552,159,328	)
Net increase		65,136,556		$	767,154,576			82,794,881		$	912,546,311
Shares Outstanding:
Beginning of year		385,202,985						302,408,104
End of year		450,339,541						385,202,985
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		1,633,425		$	19,913,855			1,564,836		$	18,284,038
Shares issued to shareholders
in reinvestment of distributions		133,565			1,630,760			92,309			1,076,060
Shares redeemed		(1,686,067	)		(20,426,729	)		(1,425,125	)		(16,569,786	)
Net increase		80,923		$	1,117,886			232,020		$	2,790,312
Shares Outstanding:
Beginning of year		4,420,600						4,188,580
End of year		4,501,523						4,420,600
Total net increase				$	768,272,462					$	915,336,623

⁽¹⁾  Includes purchase in-kind transactions. See additional information contained in this Note.

Page 496

Notes to the Financial Statements

December 31, 2020

3. Capital Share Transactions (cont.)

Baird Aggregate Bond Fund

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		1,203,043,975		$	14,069,540,913			890,354,110	(1)	$	9,744,801,391
Shares issued to shareholders
in reinvestment of distributions		74,311,480			869,932,329			44,958,567			495,565,654
Shares redeemed		(518,886,091	)		(6,008,637,812	)		(400,015,560	)		(4,414,787,850	)
Net increase		758,469,364		$	8,930,835,430			535,297,117		$	5,825,579,195
Shares Outstanding:
Beginning of year		1,950,270,561						1,414,973,444
End of year		2,708,739,925						1,950,270,561
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		49,811,927		$	602,252,494			23,678,620		$	270,517,976
Shares issued to shareholders
in reinvestment of distributions		2,276,758			27,599,010			1,477,136			16,819,518
Shares redeemed		(35,497,571	)		(427,505,756	)		(23,327,468	)		(264,008,316	)
Net increase		16,591,114		$	202,345,748			1,828,288		$	23,329,178
Shares Outstanding:
Beginning of year		67,780,865						65,952,577
End of year		84,371,979						67,780,865
Total net increase				$	9,133,181,178					$	5,848,908,373

⁽¹⁾  Includes purchase in-kind transactions. See additional information contained in this Note.

Baird Core Plus Bond Fund

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		748,369,472		$	8,949,189,350			631,387,566		$	7,152,999,146
Shares issued to shareholders
in reinvestment of distributions		67,703,177			813,547,951			46,248,366			524,909,170
Shares redeemed		(461,624,165	)		(5,485,878,150	)		(268,458,877	)		(3,037,655,467	)
Net increase		354,448,484		$	4,276,859,151			409,177,055		$	4,640,252,849
Shares Outstanding:
Beginning of year		1,853,736,631						1,444,559,576
End of year		2,208,185,115						1,853,736,631

Page 497

Notes to the Financial Statements

December 31, 2020

3. Capital Share Transactions (cont.)

Baird Core Plus Bond Fund (cont.)

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		78,958,693		$	986,325,404			71,909,873		$	853,236,845
Shares issued to shareholders
in reinvestment of distributions		6,401,361			80,288,421			5,080,103			60,019,140
Shares redeemed		(81,049,037	)		(1,004,620,453	)		(62,144,601	)		(732,158,958	)
Net increase		4,311,017		$	61,993,372			14,845,375		$	181,097,027
Shares Outstanding:
Beginning of year		207,381,809						192,536,434
End of year		211,692,826						207,381,809
Total net increase				$	4,338,852,523					$	4,821,349,876
Baird Short-Term Municipal Bond Fund
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		111,010,726		$	1,148,586,895			83,569,164		$	854,504,880
Shares issued to shareholders
in reinvestment of distributions		1,408,880			14,571,461			791,896			8,094,781
Shares redeemed		(56,886,182	)		(586,467,058	)		(22,094,002	)		(225,537,364	)
Net increase		55,533,424		$	576,691,298			62,267,058		$	637,062,297
Shares Outstanding:
Beginning of year		90,228,606						27,961,548
End of year		145,762,030						90,228,606
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		11,551,814		$	119,687,286			4,140,204		$	42,102,510
Shares issued to shareholders
in reinvestment of distributions		85,715			882,719			126,459			1,288,643
Shares redeemed		(11,522,304	)		(119,184,278	)		(1,894,173	)		(19,246,772	)
Net increase		115,225		$	1,385,727			2,372,490		$	24,144,381
Shares Outstanding:
Beginning of year		8,744,555						6,372,065
End of year		8,859,780						8,744,555
Total net increase				$	578,077,025					$	661,206,678

Page 498

Notes to the Financial Statements

December 31, 2020

3. Capital Share Transactions (cont.)

Baird Strategic Municipal Bond Fund

	Year Ended						Period Ended
	December 31, 2020						December 31, 2019^
Institutional Class Shares	Shares			Amount			Shares		Amount
Shares sold		15,288,645		$	161,427,996			1,191,211	$	11,913,000
Shares issued to shareholders
in reinvestment of distributions		162,489			1,723,269			1,971		19,800
Shares redeemed		(1,243,056	)		(13,109,436	)		—		—
Net increase		14,208,078		$	150,041,829			1,193,182	$	11,932,800
Shares Outstanding:
Beginning of period		1,193,182						—
End of period		15,401,260						1,193,182
	Year Ended						Period Ended
	December 31, 2020						December 31, 2019^
Investor Class Shares	Shares			Amount			Shares		Amount
Shares sold		1,355,384		$	14,088,422			2,721	$	27,204
Shares issued to shareholders
in reinvestment of distributions		8,830			92,988			4		42
Shares redeemed		(713,127	)		(7,557,554	)		—		—
Net increase		651,087		$	6,623,856			2,725	$	27,246
Shares Outstanding:
Beginning of period		2,725						—
End of period		653,812						2,725
Total net increase				$	156,665,685				$	11,960,046

^  Inception was on close of business November 15, 2019.

Baird Quality Intermediate Municipal Bond Fund

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		39,063,817		$	465,544,211			37,429,313		$	436,057,112
Shares issued to shareholders
in reinvestment of distributions		1,929,063			23,033,632			1,967,518			22,948,488
Shares redeemed		(27,597,516	)		(324,736,306	)		(21,039,444	)		(244,334,905	)
Net increase		13,395,364		$	163,841,537			18,357,387		$	214,670,695
Shares Outstanding:
Beginning of year		107,042,733						88,685,346
End of year		120,438,097						107,042,733

Page 499

Notes to the Financial Statements

December 31, 2020

3. Capital Share Transactions (cont.)

Baird Quality Intermediate Municipal Bond Fund (cont.)

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		2,016,175		$	24,438,030			1,754,039		$	20,899,396
Shares issued to shareholders
in reinvestment of distributions		94,848			1,159,229			141,316			1,686,818
Shares redeemed		(4,929,837	)		(60,538,942	)		(4,334,171	)		(51,277,592	)
Net decrease		(2,818,814	)	$	(34,941,683	)		(2,438,816	)	$	(28,691,378	)
Shares Outstanding:
Beginning of year		7,064,666						9,503,482
End of year		4,245,852						7,064,666
Total net increase				$	128,899,854					$	185,979,317
Baird Core Intermediate Municipal Bond Fund
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		43,702,531		$	472,813,969			19,236,314		$	202,455,794
Shares issued to shareholders
in reinvestment of distributions		1,042,918			11,293,123			744,428			7,848,852
Shares redeemed		(18,165,745	)		(194,263,467	)		(6,689,681	)		(70,036,885	)
Net increase		26,579,704		$	289,843,625			13,291,061		$	140,267,761
Shares Outstanding:
Beginning of year		50,283,479						36,992,418
End of year		76,863,183						50,283,479
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		2,881,342		$	30,488,897			405,371		$	4,259,636
Shares issued to shareholders
in reinvestment of distributions		29,884			323,343			7,809			82,442
Shares redeemed		(1,430,773	)		(15,479,463	)		(51,823	)		(543,537	)
Net increase		1,480,453		$	15,332,777			361,357		$	3,798,541
Shares Outstanding:
Beginning of year		555,466						194,109
End of year		2,035,919						555,466
Total net increase				$	305,176,402					$	144,066,302

Page 500

Notes to the Financial Statements

December 31, 2020

3. Capital Share Transactions (cont.)

Baird Municipal Bond Fund

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019^
Institutional Class Shares	Shares			Amount			Shares		Amount
Shares sold		1,148,322		$	11,975,672			730,100	$	7,301,000
Shares issued to shareholders
in reinvestment of distributions		54,692			580,080			1,342		13,530
Shares redeemed		(34,206	)		(363,107	)		—		—
Net increase		1,168,808		$	12,192,645			731,442	$	7,314,530
Shares Outstanding:
Beginning of period		731,442						—
End of period		1,900,250						731,442
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019^
Investor Class Shares	Shares			Amount			Shares		Amount
Shares sold		154,179		$	1,647,500			2,881	$	28,812
Shares issued to shareholders
in reinvestment of distributions		3,093			32,936			5		46
Shares redeemed		(7,666	)		(82,337	)		—		—
Net increase		149,606		$	1,598,099			2,886	$	28,858
Shares Outstanding:
Beginning of period		2,886						—
End of period		152,492						2,886
Total net increase				$	13,790,744				$	7,343,388

^  Inception was on close of business November 15, 2019.

During the year ended December 31, 2019, the Funds satisfied purchase in-kind requests made by large institutional shareholders by transferring cash and securities into the Funds. The transfers were effected in accordance with policies and procedures approved by the Board. Consideration received and shares sold were as follows:

Year Ended December 31, 2019

			Value of Cash and		Shares
Fund	Effective Date	Securities Received			Sold
Baird Short-Term Bond Fund – Institutional Class	April 17, 2019		$	20,928,303	2,164,251
Baird Short-Term Bond Fund – Institutional Class	May 30, 2019			4,117,024	424,435
Baird Short-Term Bond Fund – Institutional Class	September 27, 2019			27,827,277	2,848,237
Total			$	52,872,604
Baird Intermediate Bond Fund – Institutional Class	February 27, 2019		$	31,286,219	2,878,217
Baird Intermediate Bond Fund – Institutional Class	April 24, 2019			5,132,174	465,715
Baird Intermediate Bond Fund – Institutional Class	April 24, 2019			730,646	66,302
Baird Intermediate Bond Fund – Institutional Class	May 30, 2019			7,067,068	637,822
Total			$	44,216,107
Baird Aggregate Bond Fund – Institutional Class	May 30, 2019		$	15,529,086	1,424,687
Total			$	15,529,086

Page 501

Notes to the Financial Statements

December 31, 2020

4. Investment Transactions and Income Tax Information

During the year ended December 31, 2020, purchases and sales of investment securities (excluding short-term investments and any in-kind transactions) were as follows:

	U.S. Government Obligations				All Other
	Purchases		Sales		Purchases		Sales
Baird Ultra Short Bond Fund	$	311,450,638	$	455,799,578	$	2,687,409,356	$	1,280,246,430
Baird Short-Term Bond Fund		3,875,877,314		3,166,349,524		3,130,985,407		1,635,108,534
Baird Intermediate Bond Fund		1,440,582,096		1,287,407,491		998,530,615		443,465,967
Baird Aggregate Bond Fund		7,613,259,593		6,049,081,269		9,746,559,900		3,268,488,284
Baird Core Plus Bond Fund		5,296,754,393		5,630,454,025		6,987,273,789		2,980,360,645
Baird Short-Term
Municipal Bond Fund		—		—		836,685,411		350,811,405
Baird Strategic Municipal Bond Fund		—		—		182,220,624		70,072,086
Baird Quality Intermediate
Municipal Bond Fund		—		—		325,110,324		200,556,550
Baird Core Intermediate
Municipal Bond Fund		—		—		457,808,969		212,943,082
Baird Municipal Bond Fund		—		—		29,672,042		16,488,892

As of December 31, 2020, the components of distributable earnings (accumulated losses) for income tax purposes were as follows:

	Baird			Baird			Baird
	Ultra Short			Short-Term			Intermediate
	Bond Fund			Bond Fund			Bond Fund
Cost of investments	$	4,609,222,598		$	9,073,462,528		$	5,155,326,113
Gross unrealized appreciation	$	5,024,523		$	140,867,477		$	260,161,913
Gross unrealized depreciation		(1,589,497	)		(3,024,633	)		(9,091,689	)
Net unrealized appreciation		3,435,026			137,842,844			251,070,224
Undistributed ordinary income		304,650			4,590,708			2,334,292
Undistributed long-term capital gains		—			5,002,305			2,607,990
Distributable earnings		304,650			9,593,013			4,942,282
Other accumulated losses		(7,843	)		—			—
Total distributable earnings	$	3,731,833		$	147,435,857		$	256,012,506
				Baird			Baird
				Aggregate			Core Plus
				Bond Fund			Bond Fund
Cost of investments				$	31,348,903,035		$	27,660,656,061
Gross unrealized appreciation				$	1,954,418,458		$	2,096,203,053
Gross unrealized depreciation					(84,972,674	)		(77,845,848	)
Net unrealized appreciation					1,869,445,784			2,018,357,205
Undistributed ordinary income					2,065,275			2,205,220
Distributable earnings					2,065,275			2,205,220
Other accumulated losses					(1,716,863	)		(734,237	)
Total distributable earnings				$	1,869,794,196		$	2,019,828,188

Page 502

Notes to the Financial Statements

December 31, 2020

4. Investment Transactions and Income Tax Information (cont.)

	Baird			Baird			Baird Quality
	Short-Term			Strategic			Intermediate
	Municipal			Municipal			Municipal
	Bond Fund			Bond Fund			Bond Fund
Cost of investments	$	1,546,271,044		$	169,039,130		$	1,407,129,876
Gross unrealized appreciation	$	28,172,854		$	2,341,541		$	78,118,542
Gross unrealized depreciation		(658,223	)		(130,592	)		(222,405	)
Net unrealized appreciation		27,514,631			2,210,949			77,896,137
Undistributed ordinary income		—			384,213			—
Undistributed tax-exempt income		524,675			60,230			700,056
Distributable earnings		524,675			444,443			700,056
Other accumulated losses		(372,629	)		—			(10,042,213	)
Total distributable earnings	$	27,666,677		$	2,655,392		$	68,553,980
				Baird Core
				Intermediate			Baird
				Municipal			Municipal
				Bond Fund			Bond Fund
Cost of investments				$	815,556,772		$	21,499,898
Gross unrealized appreciation				$	35,815,148		$	742,596
Gross unrealized depreciation					(366,835	)		(36,027	)
Net unrealized appreciation					35,448,313			706,569
Undistributed ordinary income					221,028			49,950
Undistributed tax-exempt income					384,177			11,169
Distributable earnings					605,205			61,119
Other accumulated losses					(55,966	)		—
Total distributable earnings				$	35,997,552		$	767,688

The difference between book-basis and tax-basis unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales and mark-to-market on passive foreign investment companies.

Additionally, U.S. generally accepted accounting principles require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting.  Permanent differences are due to equalization, over distributions, miscellaneous book adjustments and net operating losses.  These reclassifications have no effect on net assets or net asset value per share.  For the year ended December 31, 2020, the following table shows the reclassifications made:

	Total
	Distributable			Paid-in
Fund	Earnings			Capital
Baird Ultra Short Bond Fund	$	(183,972	)	$	183,972
Baird Short-Term Bond Fund		(11,327,491	)		11,327,491
Baird Intermediate Bond Fund		(6,633,868	)		6,633,868
Baird Aggregate Bond Fund		(45,015,380	)		45,015,380
Baird Core Plus Bond Fund		(34,250,299	)		34,250,299
Baird Strategic Municipal Bond Fund		(41,426	)		41,426
Baird Core Intermediate Municipal Bond Fund		(337,647	)		337,647

Page 503

Notes to the Financial Statements

December 31, 2020

4. Investment Transactions and Income Tax Information (cont.)

Distributions to Shareholders

Each Fund generally pays dividends from net investment income and distributes net realized capital gains, if any, at least annually. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Certain Funds also utilize earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction. Distributions to shareholders are recorded on the ex-dividend date.

The tax components of distributions paid during the periods shown below were as follows:

	Year Ended December 31, 2020
	Ordinary		Long-Term		Tax-Exempt
Fund	Income		Capital Gains		Income		Total
Baird Ultra Short Bond Fund	$	38,111,687	$	—	$	—	$	38,111,687
Baird Short-Term Bond Fund		185,540,551		22,134,129		—		207,674,680
Baird Intermediate Bond Fund		124,544,107		47,976,588		—		172,520,695
Baird Aggregate Bond Fund		785,940,815		199,757,752		—		985,698,567
Baird Core Plus Bond Fund		778,259,758		179,785,396		—		958,045,154
Baird Short-Term Municipal Bond Fund		105,949		—		18,530,229		18,636,178
Baird Strategic Municipal Bond Fund		986,026		—		916,171		1,902,197
Baird Quality Intermediate
Municipal Bond Fund		—		—		27,499,082		27,499,082
Baird Core Intermediate
Municipal Bond Fund		1,187,579		810,416		12,958,592		14,956,587
Baird Municipal Bond Fund		410,515		—		282,351		692,866
	Year Ended December 31, 2019
	Ordinary		Long-Term		Tax-Exempt
Fund	Income		Capital Gains		Income		Total
Baird Ultra Short Bond Fund	$	38,182,380	$	—	$	—	$	38,132,380
Baird Short-Term Bond Fund		161,961,521		—		—		161,961,521
Baird Intermediate Bond Fund		103,648,901		—		—		103,648,901
Baird Aggregate Bond Fund		567,640,739		—		—		567,640,739
Baird Core Plus Bond Fund		627,523,865		—		—		627,523,865
Baird Short-Term Municipal Bond Fund		28,242		—		11,611,249		11,639,491
Baird Quality Intermediate
Municipal Bond Fund		6,546		—		28,024,100		28,030,646
Baird Core Intermediate
Municipal Bond Fund		66,614		398,341		10,590,083		11,055,038

	Period Ended December 31, 2019(1)
	Ordinary		Tax-Exempt
Fund	Income		Income		Total
Baird Strategic Municipal Bond Fund	$	314	$	21,360	$	21,674
Baird Municipal Bond Fund		166		13,890		14,056

⁽¹⁾ For the period from close of business on November 15,2019 (inception date) through December 31, 2019.

The Funds in the table above designated as long-term capital gain dividends, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capital gain to zero for the tax year ended December 31, 2020. To the extent necessary to fully distribute such capital gains, the Funds also designate earnings and profits distributed to shareholders on the redemption of shares.

Page 504

Notes to the Financial Statements

December 31, 2020

4. Investment Transactions and Income Tax Information (cont.)

At December 31, 2020, the following Funds deferred, on a tax basis, post-October losses of & specified losses:

Fund	Loss Deferral
Baird Ultra Short Bond Fund	$	7,843
Baird Aggregate Bond Fund		1,716,863
Baird Core Plus Bond Fund		734,237
Baird Core Intermediate Municipal Bond Fund		55,966

At December 31, 2020, accumulated net realized capital loss carryovers, if any, and the year(s) in which the capital loss carryovers expire were:

	Capital Loss Carryover				Year of Expiration
Fund	Short-term		Long-term		Short-term	Long-term
Baird Short-Term Municipal Bond Fund	$	372,629	$	—	Indefinitely	N/A
Baird Quality Intermediate Municipal Bond Fund		5,426,515		4,615,698	Indefinitely	Indefinitely

During the year ended December 31, 2020, the Baird Short-Term Bond Fund, Baird Intermediate Bond Fund, Baird Core Plus Bond Fund, and Baird Short-Term Municipal Bond Fund utilized capital loss carryover of $7,371,164, $9,020,920, $34,267,426, and $18,963, respectively.

5. Investment Advisory and Other Agreements

The Funds have entered into an Investment Advisory Agreement with Baird for the provision of investment advisory services. Pursuant to the Investment Advisory Agreement, the Advisor is entitled to receive a fee, calculated daily and payable monthly, at the annual rate of 0.25% for the Funds as applied to the respective Fund’s average daily net assets.  Certain officers and employees of the Advisor are also officers of the Funds.

For Baird Ultra Short Bond Fund, the Advisor has contractually agreed to waive management fees in an amount equal to an annual rate of 0.15% of average daily net assets for the Fund, at least through April 30, 2022. The agreement may only be terminated prior to the end of this term by or with the consent of the Board.

For the year ended December 31, 2020, the Advisor waived the following amount pursuant to the fee waiver agreement between the Advisor and the Corporation on behalf of the Baird Ultra Short Bond Fund:

Fund	Waived Amount
Baird Ultra Short Bond Fund	$4,176,197

These fees are not subject to recoupment by the Advisor.

The Funds have entered into an Administration Agreement with Baird.  Under the Administration Agreement, the Advisor assumes and pays all expenses of the applicable Fund other than the investment advisory fees, fees under the 12b-1 plan, costs related to portfolio securities transactions and extraordinary or non-recurring expenses.  Pursuant to the Administration Agreement, the Advisor is entitled to receive a fee, calculated daily and payable monthly, at the annual rate of 0.05% for the Funds as applied to the respective Fund’s average daily net assets.

U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services, serves as transfer agent, administrator, and accounting services agent for the Funds.  U.S. Bank, N.A. (“U.S. Bank”) serves as custodian for the Funds.

Robert W. Baird & Co. Incorporated (the “Distributor”) is the sole distributor of the Funds pursuant to a distribution agreement.

No commissions were earned by the Distributor for services rendered as a registered broker-dealer in securities transactions for the year ended December 31, 2020 for the Funds.

Page 505

Notes to the Financial Statements

December 31, 2020

5. Investment Advisory and Other Agreements (cont.)

The Funds may use related party broker-dealers. For the year ended December 31, 2020, there were no brokerage commissions paid to broker-dealers affiliated with the Advisor. The Advisor or its affiliates may have lending, banking, brokerage, underwriting, or other business relationships with the issuers of the securities in which the Funds invest.

The Funds may purchase securities from an underwriting syndicate in which the principal underwriter or members of the syndicate are affiliated with the Advisor. For the year ended December 31, 2020, the Funds purchased the following amounts of such securities:

Fund	Purchases
Baird Ultra Short Bond Fund	$	17,050,000
Baird Short-Term Bond Fund		12,000,000
Baird Intermediate Bond Fund		2,800,000
Baird Aggregate Bond Fund		14,100,000
Baird Short-Term Municipal Bond Fund		28,850,000
Baird Strategic Municipal Bond Fund		2,300,000
Baird Core Intermediate Municipal Bond Fund		6,000,000
Baird Municipal Bond Fund		200,000

6. Line of Credit

The Corporation maintains an uncommitted line of credit (“LOC”) with U.S. Bank to provide the sixteen Funds comprising the Corporation a temporary liquidity source to meet unanticipated redemptions. The LOC is unsecured at all times and is subject to certain restrictions and covenants. Under the terms of the LOC, borrowings for each Fund are limited to one third of the total eligible net assets (including the amount borrowed) of the respective Fund, or $600,000,000 of total borrowings for the Funds comprising the Corporation, whichever is less. U.S. Bank charges interest at the U.S. Prime Rate less 2%, but in no event less than a net rate of 1% per annum. As of December 31, 2020, the Prime Rate was 3.25%. The LOC matures on May 24, 2021, unless renewed. The Corporation has authorized U.S. Bank to charge any of the accounts of the borrowing Fund subject to the agreement for any missed payments.

During the year ended December 31, 2020, the Funds borrowed from the LOC as follows:

	Amount		Interest Charges		Borrowing
Fund	Borrowed		Accrued		Rate
Baird Quality Intermediate Municipal Bond Fund	$	26,539,000	$	4,976	2.25%
Baird Short-Term Municipal Bond Fund		2,043,000		71	1.25%
Baird Short-Term Municipal Bond Fund		4,961,000		172	1.25%
Baird Strategic Municipal Bond Fund		1,001,000		104	1.25%
Baird Strategic Municipal Bond Fund		889,000		31	1.25%
Baird Strategic Municipal Bond Fund		270,000		9	1.25%

No other borrowings occurred during the year ended December 31, 2020 nor were any other borrowings outstanding under the LOC as of December 31, 2020.

Page 506

Notes to the Financial Statements

December 31, 2020

7. Distribution and Shareholder Service Plan

The Funds have adopted a distribution and shareholder service plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan allows the Funds to compensate the Distributor for the costs incurred in distributing the Funds’ Investor Class Shares, including amounts paid to brokers or dealers, at an annual rate of 0.25% of the average daily net assets of the Funds’ Investor Class Shares.

For the year ended December 31, 2020, the Funds incurred fees pursuant to the Plan as follows:

Fund
Baird Ultra Short Bond Fund	$	188,910
Baird Short-Term Bond Fund		443,178
Baird Intermediate Bond Fund		131,043
Baird Aggregate Bond Fund		2,208,840
Baird Core Plus Bond Fund		6,372,462
Baird Short-Term Municipal Bond Fund		179,628
Baird Strategic Municipal Bond Fund		9,772
Baird Quality Intermediate Municipal Bond Fund		182,100
Baird Core Intermediate Municipal Bond Fund		38,787
Baird Municipal Bond Fund		707

8. Other Derivative Information

As a principal investment strategy, the Baird Strategic Municipal Bond Fund may invest in U.S. Treasury futures contracts for duration and yield curve management or to manage market and interest rate risk. The Fund’s market risk related to its derivatives trading is influenced by a wide variety of factors, including the level and volatility of interest rates, the fair value of futures contracts, the diversification effects among the Fund’s open positions and the liquidity of the markets in which it trades.

The Baird Strategic Municipal Bond Fund had no outstanding futures contracts at December 31, 2020.

Management has adopted authoritative standards regarding disclosure about derivatives and hedging activities and how they affect a Fund’s Statement of Assets and Liabilities and Statement of Operations. The derivative instruments are not designated as hedging instruments. Accordingly, all realized gains and losses, as well as any change in net unrealized gains or losses on open contracts from the preceding period, are recognized as part of realized and unrealized gain (loss) in the Statement of Operations.

The following table presents the results of the derivative trading and information related to volume for the year ended December 31, 2020 for the Baird Strategic Municipal Bond Fund. The below captions of “Net Realized” and “Net Change in Unrealized” correspond to the captions in the Fund's Statement of Operations.

	Gain (Loss) from Trading
			Net Change
Fund and Type of Derivative Instrument	Net Realized		in Unrealized
Baird Strategic Municipal Bond Fund
U.S. Treasury futures contracts
Interest rate	$	69,043	$	—
Total U.S. Treasury futures contracts	$	69,043	$	—

Page 507

Notes to the Financial Statements

December 31, 2020

8. Other Derivative Information (cont.)

The average monthly notional amount is shown as an indicator of volume. The average monthly notional amounts during the year ended December 31, 2020 were:

	Average Notional Amount
	Long		Short
	Contracts		Contracts
Baird Strategic Municipal Bond Fund
U.S. Treasury futures contracts	$	—	$	991,041

Please refer to the Fund's prospectus for a full listing of risks associated with these investments.

9. Subsequent Events

In preparing these financial statements, management has evaluated events after December 31, 2020. There were no subsequent events since December 31, 2020, through the date the financial statements were issued that would warrant adjustment to or additional disclosure in these financial statements.

Page 508

Report of Independent Registered Public

Accounting Firm

To the Shareholders and Board of Directors of Baird Funds, Inc.

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the funds listed below (the “Funds”), each a series of Baird Funds, Inc., as of December 31, 2020, the related statements of operations, the statements of changes in net assets, the related notes, and the financial highlights for each of the periods indicated below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2020, the results of their operations, the changes in net assets, and the financial highlights for each of the periods indicated below in conformity with accounting principles generally accepted in the United States of America.

		Statements
	Statements of	of Changes	Financial
Fund Name	Operations	in Net Assets	Highlights
Baird Ultra Short Bond Fund, Baird Short-Term Bond	For the	For the	For the
Fund, Baird Intermediate Bond Fund, Baird Aggregate	year ended	years ended	years ended
Bond Fund, Baird Core Plus Bond Fund, Baird	December 31,	December 31,	December 31,
Short-Term Municipal Bond Fund, Baird Quality	2020	2020 and 2019	2020, 2019,
Intermediate Municipal Bond Fund, Baird Core			2018, and 2017
Intermediate Municipal Bond Fund
Baird Strategic Municipal Bond Fund,	For the	For the year ended December 31,
Baird Municipal Bond Fund	year ended	2020 and for the period from
	December 31,	November 15, 2019
	2020	(commencement of operations)
		through December 31, 2019

The Funds’ financial highlights for the year ended December 31, 2016, were audited by other auditors whose report dated February 27, 2017, expressed an unqualified opinion on those financial highlights.

Basis for Opinion

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits.  We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Our procedures included confirmation of securities owned as of December 31, 2020, by correspondence with the custodian and brokers.  Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.  We believe that our audits provide a reasonable basis for our opinion.

We have served as the Funds’ auditor since 2017.

COHEN & COMPANY, LTD.

Milwaukee, Wisconsin

February 26, 2021

Page 509

Directors & Officers

As of December 31, 2020 (Unaudited)

Independent Directors

John W. Feldt

Independent Director, Audit Committee Chair

Term of Office:  Indefinite

Length of Time Served:  Since September 2000

Age:  78

c/o Robert W. Baird & Co. Incorporated

777 East Wisconsin Avenue

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Retired.

Number of Active Portfolios in Complex Overseen by Director:  16

Other Directorships Held by Director:  Director of Thompson IM Funds, Inc., a mutual fund complex (3 portfolios) (1987-2018).

Darren R. Jackson

Independent Director

Term of Office:  Indefinite

Length of Time Served:  Since November 2018

Age: 56

c/o Robert W. Baird & Co. Incorporated

777 East Wisconsin Avenue

Milwaukee, WI 53202

Principal Occupation(s) During the Past 5 Years: Retired; President, CEO and Director, Advance Auto Parts, Inc. (2008-2016).

Number of Active Portfolios in Complex Overseen by Director:  16

Other Directorships Held by Director:  Director of Cree, Inc., a semiconductor company, since 2016; Director of Fastenal Company, a tool and supply distributor (2012-2020).

Frederick P. Stratton, Jr.

Independent Director, Nominating

Committee Chair

Term of Office:  Indefinite

Length of Time Served:  Since May 2004

Age:  81

c/o Robert W. Baird & Co. Incorporated

777 East Wisconsin Avenue

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Retired; Chairman Emeritus, Briggs & Stratton Corporation, a manufacturing company, (2003-2020).

Number of Active Portfolios in Complex Overseen by Director:  16

Other Directorships Held by Director:  Director of Weyco Group, Inc., a men’s footwear distributor, since 1976.

Marlyn J. Spear, CFA

Independent Director, Chair of Board

Term of Office:  Indefinite

Length of Time Served:  Since January 2008

Age:  67

c/o Robert W. Baird & Co. Incorporated

777 East Wisconsin Avenue

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Retired; Chief Investment Officer, Building Trades United Pension Trust Fund (July 1989-February 2017).

Number of Active Portfolios in Complex Overseen by Director:  16

Other Directorships Held by Director:  Management Trustee of AFL-CIO Housing Investment Trust, a mutual fund complex (1 portfolio) (1995-2018).

Page 510

Directors & Officers

As of December 31, 2020 (Unaudited) (Continued)

Independent Director

Cory L. Nettles

Independent Director

Term of Office:  Indefinite

Length of Time Served:  Since January 2008

Age:  50

c/o Generation Growth Capital, Inc.

411 East Wisconsin Avenue, Suite 1710

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Managing Director, Generation Growth Capital, Inc., a private equity fund, since March 2007; Of Counsel, Quarles & Brady LLP, a law firm (January 2005-December 2016).

Number of Active Portfolios in Complex Overseen by Director:  16

Other Directorships Held by Director:  Director of Weyco Group, Inc., a men’s footwear distributor, since 2007; Director of Associated Banc-Corp, since 2013.

Officers

Mary Ellen Stanek

President

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since September 2000

Age:  64

777 East Wisconsin Avenue

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Managing Director, the Advisor, and Chief Investment Officer, Baird Advisors, a department of the Advisor, since March 2000.

Charles B. Groeschell

Vice President

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since January 2010

Age:  67

777 East Wisconsin Avenue

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Managing Director, the Advisor, and Senior Portfolio Manager, Baird Advisors, a department of the Advisor, since February 2000.

Angela M. Palmer

Chief Compliance Officer and

AML Compliance Officer

Term of Office:  Re-elected by Board annually

Length of Time Served: Since March 2014

Age:  48

777 East Wisconsin Ave

Milwaukee, WI 53202

Principal Occupation(s) During the Past 5 Years:  Chief Compliance Officer, the Advisor, since March 2014; Anti-Money Laundering Compliance Officer since May 2015; Director, the Advisor, since July 2014.

Heidi L. Schneider

Treasurer

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since August 2017

Age:  49

777 East Wisconsin Avenue

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Managing Director, the Advisor, since December 2013.

Charles M. Weber

Secretary

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since September 2005

Age:  57

777 East Wisconsin Avenue

Milwaukee, WI 53202

Principal Occupation(s) During the Past 5 Years:  Senior Associate General Counsel, the Advisor, since January 2013; Managing Director, the Advisor, since January 2009.

Page 511

Directors & Officers

As of December 31, 2020 (Unaudited) (Continued)

Officers (Cont.)

Peter J. Hammond

Vice President

Term of Office: Re-elected by Board annually

Length of Time Served: Since August 2012

Age: 57

777 East Wisconsin Avenue

Milwaukee, WI 53202

Principal Occupation(s) During the Past 5 Years:  Managing Director, the Advisor, since January 2016;  Senior Vice President, the Advisor (March 2012-December 2015).

Dustin J. Hutter

Assistant Treasurer

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since February 2011

Age:  44

777 East Wisconsin Avenue

Milwaukee, WI 53202

Principal Occupation(s) During the Past 5 Years:  Senior Business Analyst, the Advisor, since September 2017; Director of Finance Services, the Advisor (August 2015-August 2017).

Andrew D. Ketter

Assistant Secretary

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since February 2011

Age:  46

777 East Wisconsin Avenue

Milwaukee, WI 53202

Principal Occupation(s) During the Past 5 Years:  Associate General Counsel, the Advisor, since September 2010; Director, the Advisor, since July 2014.

Additional information about the Funds’ Directors is available in the Statement of Additional Information which may be obtained without charge, upon request, by calling 1-866-44BAIRD, or at www.bairdfunds.com.

Page 512

Baird Funds, Inc.

Disclosure Regarding the Board of Directors’ Approval of the Investment

Advisory Agreement for Baird Bond Funds (Unaudited)

The Board of Directors (the “Board”) of Baird Funds, Inc. (the “Corporation”), comprised of directors who are not “interested persons” of the Corporation within the meaning of the Investment Company Act of 1940 (the “Independent Directors”), met on August 17 and August 25, 2020 to consider the annual renewal of the investment advisory agreement between Robert W. Baird & Co. Incorporated (“Baird” or the “Advisor”) and the Corporation on behalf of the Baird Ultra Short Bond Fund, Baird Short-Term Bond Fund, Baird Intermediate Bond Fund, Baird Aggregate Bond Fund, Baird Core Plus Bond Fund, Baird Short-Term Municipal Bond Fund, Baird Quality Intermediate Municipal Bond Fund, and Baird Core Intermediate Municipal Bond Fund (the “Bond Funds” or the “Funds”).  The Board did not consider the renewal of the investment advisory agreement between the Advisor and the Corporation on behalf of the Baird Municipal Bond Fund and Baird Strategic Municipal Bond Fund (the “New Municipal Bond Funds”) at those meetings because the investment advisory agreement for the New Municipal Bond Funds has an initial two-year term ending in 2021.

The Board, all of whom are Independent Directors, approved the continuation of the investment advisory agreement for the Bond Funds through a process that concluded at the August 25, 2020 meeting.  In connection with its consideration of the investment advisory agreement, the Board reviewed and discussed various information that had been provided prior to the meeting, including a copy of the investment advisory agreement and related fee schedules, a memorandum provided by legal counsel summarizing the guidelines relevant to the Board’s consideration of the investment advisory agreement, a memorandum and other information provided in response to a request from the Board by the Advisor, including information about the operation of the Advisor and the Funds during the COVID-19 pandemic, a copy of the Advisor’s Form ADV Part 1A and Form ADV Part 2 brochures and brochure supplements, the annual report and audited consolidated financial statements for Baird Financial Group, Inc. (the Advisor’s parent company), a profitability analysis, comparative information about the Funds’ performance for the applicable periods ended June 30, 2020, comparative information about management fees and expense ratios, composite performance information for similar accounts managed by the Advisor, trading and brokerage commission information and other pertinent information.

The Board considered the Advisor’s 15(c) response and discussed various questions and information with representatives of the Advisor at the August 17, 2020 special meeting.  At the August 25, 2020 meeting, the Board met in executive session with the Funds’ legal counsel to consider the investment advisory agreement.  The Board also took into account information reviewed periodically throughout the year that was relevant to its consideration of the investment advisory agreement, including performance, management fee and other expense information, compliance matters, business initiatives of the Advisor, information about investments made by the Advisor in personnel, technology and services that benefit the Funds and discussions with the Funds’ portfolio managers.

Based on its evaluation of this information, the Board, including all of the Independent Directors, approved the continuation of the investment advisory agreement for the Bond Funds for an additional one-year period.

In considering the investment advisory agreement and reaching its conclusions, the Board reviewed and analyzed various factors that it determined were relevant, including the factors below.  In deciding to approve the investment advisory agreement for each Fund, the Board did not identify any single factor as determinative but considered all factors together.

Nature, Extent and Quality of Services Provided to the Funds

The Board considered the nature, extent and quality of the services provided by the Advisor to the Funds.  The Board noted the Advisor’s overall reputation and depth of the Advisor’s personnel, resources and commitment to the Funds and the experience of the portfolio management teams employed to manage the Funds’ investments.  The Board considered the credentials and continuity of the portfolio management teams for the

Page 513

Baird Funds, Inc.

Disclosure Regarding the Board of Directors’ Approval of the Investment

Advisory Agreement for Baird Bond Funds (Unaudited) (Continued)

Funds and noted that the Advisor continues to add resources in support of the Funds, including investments in personnel, technology, systems, trading and research capabilities, databases, work from home infrastructure and virtual meeting technology.  The Board considered the information provided by the Advisor regarding the effective implementation of the Advisor’s business continuity plan and the performance and operation of the Funds during the COVID-19 pandemic.

The Board considered the Advisor’s disciplined investment decision making process used for the Funds.  The Board also considered other services that the Advisor provides the Funds in its capacity as their investment advisor, such as making some of its key personnel available to serve as officers of the Funds, selecting broker-dealers for execution of portfolio transactions, ensuring adherence to the Funds’ investment policies and restrictions, proxy voting, compliance, risk management services, administering the Funds’ liquidity risk management program, administering the Funds’ cybersecurity program and business continuity plan, valuation support, providing support services to the Board and the committees of the Board and overseeing the Funds’ other service providers.  The Board noted the growth in net assets in the Bond Funds, including during the challenging first six months of 2020, and Baird Advisors’ ability to effectively manage the Funds’ cash flows while maintaining strong performance.  The Board also considered the strength of the Advisor’s compliance department, including the credentials of the Funds’ chief compliance officer, as well as the Advisor’s risk management system.  The Board concluded that the nature, extent and quality of the services provided by the Advisor to the Funds were appropriate and that each Fund was likely to continue to benefit from services provided under the investment advisory agreement.

Investment Performance of the Advisor and the Funds

In considering the investment performance of each of the Funds, the Board reviewed information as of June 30, 2020 regarding the performance of each class of the Fund for applicable one-year, three-year, five-year, ten-year and since-inception periods in comparison to its benchmark index and its peer group as determined by Lipper.  The Board also considered the Funds’ performance during the recent market downturn in the first six months of 2020 and noted that almost all of the Funds’ Institutional Class shares had seen positive relative performance against their benchmarks during this period.  The Board also reviewed composite investment performance of Baird Advisors with respect to accounts managed by the Advisor that are comparable to the Funds but did not consider it to be a material factor in the 15(c) process.

The Board noted that the performance results of the Bond Funds have been extremely competitive and consistent on both an absolute and relative basis for all applicable periods, and that the performance for the Institutional Class shares of the Funds, other than the Quality Intermediate Municipal Bond Fund, has been in the top quartile of the respective Lipper peer group for the applicable one-year, three-year, five-year, ten-year and since-inception periods.  With respect to the Quality Intermediate Municipal Bond Fund, the Board took note of the Advisor’s commentary regarding the Fund’s high-quality bias and emphasis on intermediate maturity holdings, which impacted the longer-term Lipper rankings for the Fund.

The Board noted that the returns of the Institutional Class of the Ultra Short Bond Fund,  the Core Intermediate Municipal Bond Fund, the Aggregate Bond Fund, the Core Plus Bond Fund, the Short-Term Bond Fund and the Intermediate Bond Fund have exceeded the returns of the benchmark index and the Lipper peer group average over all applicable time periods.  The Institutional Class of the Short-Term Municipal Bond Fund trailed the benchmark index but exceeded the Lipper peer group average for the one-year period and exceeded the benchmark index and the Lipper peer group average for the three-year and since-inception periods.  The Institutional Class of the Quality Intermediate Municipal Bond Fund exceeded the benchmark index and Lipper peer group average for the one-year period, trailed the benchmark index and exceeded the Lipper peer group average for the three-year and since inception periods and trailed the benchmark index and Lipper peer group average for the five- and ten-year periods.

Page 514

Baird Funds, Inc.

Disclosure Regarding the Board of Directors’ Approval of the Investment

Advisory Agreement for Baird Bond Funds (Unaudited) (Continued)

The Board also considered the Advisor’s quarterly portfolio commentaries and reviews explaining the Funds’ performance and the consistent investment strategies the Advisor employs for each Fund.  The Board concluded that, although past performance is not a guarantee of future results, each Fund and its shareholders were likely to benefit from the continued management by the Advisor.

Advisory Fees and Expenses

The Board reviewed the fee and expense information for each of the Funds, including a comparison of each Fund’s advisory fee and total net expense ratio to industry data for other mutual funds in the same Morningstar peer group.  The Board noted that each Fund’s advisory fee and net expense ratio for the Institutional Class shares are significantly lower than the average advisory fee and expense ratios for all mutual funds in the respective Morningstar category and the net expense ratio for Investor Class shares was lower than or competitive with the category averages.  With respect to the Ultra Short Bond Fund, the Board considered the Advisor’s contractual agreement to waive management fees of 0.15% until April 30, 2021.  In addition, the Board considered that under the Administration Agreement, each of the Bond Funds pays administrative fees to the Advisor at an annual rate of 0.05% of each Fund’s average daily net assets, and the Advisor is responsible for paying all third party service provider fees, director fees and most other expenses of each Fund, excluding management fees, Rule 12b-1 fees and specified excluded expenses, such as borrowing costs, transaction fees and extraordinary expenses, which has the effect of capping the Funds’ expense ratios at 0.55% and 0.30% for Investor and Institutional Class Shares, respectively.

The Board also reviewed and considered investment management fees charged by the Advisor to other investment advisory clients, including separately managed accounts and subadvisory arrangements with unaffiliated mutual funds and a collective investment trust, but did not consider these comparisons to be a material factor given the difference in services provided by the Advisor and the additional risks assumed by the Advisor as investment adviser to the Funds.

The Board noted the extent of the significant additional services provided to the Funds that the Advisor did not provide in other advisory and subadvisory relationships.  Those services included operational support, valuation services, administration of the Funds’ liquidity risk management program, oversight of the Funds’ other service providers, director support, preparation of regulatory filings, implementation of the Funds’ compliance program including employment of the Funds’ Chief Compliance Officer and other compliance staff, the operation of the Funds’ business continuity plan and cybersecurity plan, and various other services.  In addition, the Board noted that the provision of investment advisory services to the Funds requires more effort than it does for other accounts due to daily sales and redemption activity and additional regulatory and compliance requirements.

The Board concluded that the management fee and total expense ratio of each Fund were reasonable in light of the nature and quality of services provided and fees paid by comparable funds.

Costs and Profitability

The Board considered the fees realized, and the costs incurred, by the Advisor in providing investment management services and administration services to the Bond Funds and a profitability analysis with respect to each Fund.  The Board considered that the Advisor’s profitability information does not reflect costs incurred for various support services to the Funds such as IT, compliance, risk, legal and finance.  The Board reviewed the financial condition of the Advisor and its parent company and determined it to be sound.  The Board concluded that the Advisor’s current level of profitability was reasonable.

Page 515

Baird Funds, Inc.

Disclosure Regarding the Board of Directors’ Approval of the Investment

Advisory Agreement for Baird Bond Funds (Unaudited) (Continued)

Economies of Scale and Fee Levels Reflecting Those Economies

The Board reviewed asset levels for each Fund and considered whether there may be economies of scale in the management of each Fund at current levels and if its assets were to increase significantly.

The Board noted that the Funds’ advisory fee structure does not contain any breakpoint reductions as the Funds grow in size, but took into account management’s view that each Fund shares in economies of scale through the low advisory fee, which has been in place since the Funds were organized and is significantly lower than the advisory fee of peer Funds.  In addition, the Board noted that the Advisor bears almost all of the Bond Funds’ expenses other than management, Rule 12b-1 and administration fees.  The Directors concluded that the current fee structure of each Fund was reasonable.

Benefits Derived from the Relationship with the Funds

The Board considered other benefits to the Advisor from serving as advisor to the Funds (in addition to the advisory fee).  Those benefits include fees received by the Advisor for administrative services to the Bond Funds and Rule 12b-1 fees received by the Distributor and its representatives.  The Board noted that the Advisor’s asset management and other businesses may experience indirect benefits from the Advisor’s association with the Funds.  The Board concluded that the other benefits realized by the Advisor from its relationship with the Funds were appropriate.

Based on its evaluation of the above factors, the Directors, all of whom are Independent Directors, concluded that the continuation of the investment advisory agreement was in the best interest of each Bond Fund and its shareholders.

Page 516

Additional Information (Unaudited)

Proxy Voting

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling toll free, 1-866-44BAIRD, by accessing the Funds’ website at www.bairdfunds.com or by accessing the SEC’s website at www.sec.gov.

Each Fund’s proxy voting record for the most recent 12-month period ended June 30, if applicable, is available without charge, upon request, by calling toll free, 1-866-44BAIRD, by accessing the Funds’ website at www.bairdfunds.com or by accessing the SEC’s website at www.sec.gov.  The Funds generally do not vote proxies because the securities held in their portfolios, consisting of bonds and other fixed-income securities, are not entitled to vote.

Portfolio Holdings Disclosure

The Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Part F of Form N-PORT.  The Funds’ filings on Part F of Form N-PORT are available on the SEC’s website at www.sec.gov.  The Funds’ Form N-PORT reports may also be obtained by calling toll-free 1-866-44BAIRD.

Tax Information

The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) for each Fund were as follows:

Baird Ultra Short Bond Fund	7.15%
Baird Short-Term Bond Fund	22.73%
Baird Intermediate Bond Fund	16.88%
Baird Aggregate Bond Fund	19.99%
Baird Core Plus Bond Fund	11.53%
Baird Strategic Municipal Bond Fund	91.47%
Baird Core Intermediate Municipal Bond Fund	96.50%
Baird Municipal Bond Fund	98.03%

Page 517

Baird Funds, Inc. Privacy Policy

FACTS	WHAT DOES BAIRD FUNDS DO WITH YOUR PERSONAL INFORMATION?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include:
	•  Social Security number
	•  Account balances, transaction history and assets
	•  Checking account information and wire transfer instructions
How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Baird Funds, Inc. chooses to share; and whether you can limit this sharing.

	Does Baird	Can you limit
Reasons we can share your personal information	Funds, Inc. share?	this sharing?
For our everyday business purposes—	Yes	No
such as to process your transactions, maintain
your account(s), respond to court orders and
legal investigations, or report to credit bureaus
For our marketing purposes—	Yes	No
to offer our products and services to you
For joint marketing with other financial companies	No	We do not share
For our affiliates’ everyday business purposes—	Yes	No
information about your transactions and experiences
For our affiliates’ everyday business purposes—	No	We do not share
information about your creditworthiness
For our affiliates to market to you	No	We do not share
For nonaffiliates to market to you	No	We do not share

Questions? Call (toll free) 1-866-442-2473, Email prospectus@bairdfunds.com or go to www.bairdfunds.com

Page A-1

Baird Funds, Inc. Privacy Policy

Who we are
Who is providing	Baird Funds, Inc.
this notice?
What we do
How does Baird	To protect your personal information from unauthorized access and
Funds, Inc. protect my	use, we use security measures that comply with federal law.  These
personal information?	measures include computer safeguards and secured files and buildings.
How does Baird	We collect your personal information, for example, when you
Funds, Inc. collect	•  open an account or give us your contact information
my personal	•  make a wire transfer or provide account information
information?	•  make deposits or withdrawals from your account
	We also collect your personal information from other companies.
Why can’t I limit	Federal law gives you the right to limit only
all sharing?	•  sharing for affiliates’ everyday business purposes—information about your creditworthiness
	•  affiliates from using your information to market to you
	•  sharing for nonaffiliates to market to you
	State laws and individual companies may give you additional rights to limit sharing.
Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies.

• Robert W. Baird & Co Incorporated (the investment adviser and distributor to the Baird Funds) and its affiliates may share information among each other.

Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies.
	•  Baird Funds, Inc. does not share with nonaffiliates so they can market to you.	��
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you. We do not have any joint marketing partners.
	•  Baird Funds, Inc. does not have any joint marketing partners.

Page A-2

(This Page Intentionally Left Blank.)

Baird Funds, Inc.

c/o U.S. Bancorp Fund Services, LLC

P.O. Box 701

Milwaukee, WI 53201-0701

1-866-44BAIRD

Board of Directors

John W. Feldt

Darren R. Jackson

Cory L. Nettles

Marlyn J. Spear (Chair)

Frederick P. Stratton, Jr.

Investment Advisor and Distributor

Robert W. Baird & Co. Incorporated

777 East Wisconsin Avenue

Milwaukee, WI 53202

Administrator and Transfer Agent

U.S. Bancorp Fund Services, LLC

P.O. Box 701

615 East Michigan Street

Milwaukee, WI 53202

Custodian

U.S. Bank, N.A.

1555 N. RiverCenter Drive, Suite 302

Milwaukee, WI 53212

Legal Counsel

Godfrey & Kahn, S.C.

833 East Michigan Street, Suite 1800

Milwaukee, WI 53202

Independent Registered Public

Accounting Firm

Cohen & Company, Ltd.

342 North Water Street, Suite 830

Milwaukee, WI 53202

Annual Report –

Baird Funds

December 31, 2020

Baird MidCap Fund

Baird Small/Mid Cap Growth Fund

Baird Small/Mid Cap Value Fund

Baird SmallCap Value Fund

Chautauqua International Growth Fund

Chautauqua Global Growth Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Funds or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Funds’ website (www.bairdassetmanagement.com/baird-funds/funds-and-performance#Literature) and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary or, if you are a direct investor, by calling 1-866-442-2473, or sending an e-mail request to prospectus@bairdfunds.com.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with a Fund, you can call 1-866-442-2473 or send an e-mail request to prospectus@bairdfunds.com to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all Funds held in your account if you invest through your financial intermediary or all Funds held with the fund complex if you invest directly with the Funds.

Go Green.   Go Paperless.

Sign up to receive your Baird Funds’ prospectuses and reports online.

Table of Contents

Letter to Shareholders	1
Baird MidCap Fund	2
Baird Small/Mid Cap Growth Fund	11
Baird Small/Mid Cap Value Fund	20
Baird SmallCap Value Fund	29
Chautauqua International Growth Fund	38
Chautauqua Global Growth Fund	46
Additional Information on Fund Expenses	55
Statements of Assets and Liabilities	57
Statements of Operations	60
Statements of Changes in Net Assets	63
Financial Highlights	69
Notes to the Financial Statements	81
Report of Independent Registered Public Accounting Firm	93
Directors and Officers	94
Disclosure Regarding the Board of Directors’ Approval of the Investment
Advisory Agreement for Baird Equity Funds	97
Additional Information	101
Privacy Notice	A-1

This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.

Cautionary Note on Analyses, Opinions and Outlooks: In this report we offer analyses and opinions on the performance of individual securities, companies, industries, sectors, markets, interest rates and governmental policies, including predictions, forecasts and outlooks regarding possible future events. These can generally be identified as such because the context of the statements may include such words as “believe,” “should,” “will,” “expects,” “anticipates,” “hopes” and words of similar effect. These statements reflect the portfolio managers’ good faith beliefs and judgments and involve risks and uncertainties, including the risk that the portfolio managers’ analyses, opinions and outlooks are or will prove to be inaccurate. It is inherently difficult to correctly assess and explain the performance of particular securities, sectors, markets, interest rate movements, governmental actions or general economic trends and conditions, and many unforeseen factors contribute to the performance of Baird Funds. Investors are, therefore, cautioned not to place undue reliance on subjective judgments contained in this report.

 

Baird Funds

1-866-442-2473

www.bairdfunds.com

February 26, 2021

Dear Shareholder,

After the challenges we have all endured over the past year, our Baird Equity Asset Management team hopes this letter finds you, your families and your loved ones healthy and safe. To say that 2020 was a challenging year for the financial markets and investors truly understates what we have all experienced. The impact of the coronavirus on our investors’ lives, families, businesses and communities felt at times overwhelming, but you all persevered and we are honored to have been your equity manager during this period.

For our Baird Equity Asset Management team, this year has reminded us of the importance of looking out for each other and remaining laser focused on delivering on your financial needs. We have spent many years building and refining our equity strategies and I am extremely proud of our team for navigating the unprecedented challenges in 2020. We not only delivered competitive returns, but also peace of mind that your equity portfolio was doing what it was supposed to do. Having talented, experienced teams with time-tested strategies remains a significant competitive advantage. That expertise and talent was a contributor to the Funds’ competitive performance in 2020.

Amidst this extremely volatile and challenged environment, the MidCap, Small/Mid Cap Growth, Chautauqua International Growth and Chautauqua Global Growth Funds delivered very strong absolute performance. Our Value Funds, while lagging in the growth environment, performed as they should have, particularly with superior downside protection during the March downdraft in the market. All of the Baird Equity Funds’ long-term track records remain competitive and the portfolios are positioned well as we enter 2021.

While much in the world has changed, our core commitment to our investors has not. We remain dedicated to generating competitive, risk-controlled returns over full market cycles, providing competitively-priced products, delivering outstanding service and continuing to invest in our long-tenured and seasoned investment team.

Through all of the challenges in 2020, we never lost sight of the fact that our long-term success rests on the trust you have placed in us to be effective stewards of your assets. We want to express our sincere appreciation for your confidence in our work and continued investment in the Baird Equity Funds. May 2021 bring you health, happiness and success.

Sincerely,

Mary Ellen Stanek, CFA

President

Baird Funds

Page 1

Baird MidCap Fund

December 31, 2020 (Unaudited)

Portfolio Managers’ Commentary

For the year ended December 31, 2020, the Baird MidCap Fund Institutional Class posted a total return of 34.81% as compared to 35.59% for the Russell Midcap^® Growth Index, the Fund’s benchmark index.

The ability of equity markets to perform so well in 2020 amid a global pandemic and a near full stop of the economy was rather remarkable, but scientific ingenuity applied to vaccine development and significant central bank and government stimulus helped offset the devastating impacts of the virus. The Fund’s positioning entering the year rested on an expectation for continued economic growth. Importantly, our underlying philosophy of investing in a mix of diversified, high-quality growth businesses helped the Fund navigate the significant market decline as the pandemic unfolded in March, as well as the sharp market rebound that followed. The Fund produced a second consecutive year of returns in excess of 30%, and we were pleased with the performance compared to the benchmark, particularly given favorable results in most benchmark sectors.

The Fund’s consumer discretionary holdings played a key role in driving relative outperformance. Despite the pandemic’s significant toll on employment, substantial monetary and fiscal stimulus created enough of a bridge to carry market expectations beyond the worst of the pandemic’s economic impact. The positive wealth effect from a strong equity market and rising home prices and increased levels of consumer savings helped support consumer confidence and spending. Typically, to achieve very strong relative performance in this sector, it takes good stock picking in several areas, and this was the case in 2020 as the Fund holdings we selected in diversified retail, home building, leisure, and the restaurant industries performed well. The Fund’s overweight positioning in the sector relative to the benchmark, based on the favorable fundamentals described above, also contributed to performance.

The Fund’s returns from investments in the producer durables and materials sectors exceeded benchmark performance. It is worth grouping these two sectors together given that the prospects of many companies in both tend to be heavily influenced by changes in the economic cycle. As a result, economic weakness in the first half of the year challenged the stock performance of many companies in these sectors but returns broadly improved in the second half. Fund holdings with exposure to areas experiencing increased activity and spending performed well and included, testing and measurement for the 5G network buildout, trucking, and power transmission equipment. The standout performer for the Fund in the materials sector was a company that produces composite decking primarily for residential homes. The overall housing market was strong in 2020 and Fund holdings in companies along the home spending chain, including repair and remodel, benefitted. The Fund also held several processing and services businesses and their generally more stable revenue streams held up well amid the market volatility during the year.

As a partial offset to the strength in preceding sectors, the Fund’s technology holdings meaningfully trailed benchmark performance. Returns were quite strong throughout the sector, particularly in the large software and services group, leaving little room for stock-selection error. In some respects, the performance headwind was a matter of style over substance. The technology sector includes an increasing number of high revenue growth, but unprofitable companies. We view sustainable revenue growth and the ability to generate a profit as important measures of quality. As a result, profitability is a fundamental characteristic that we require when selecting investments for the Fund. Unprofitable companies as a group produced stronger stock price returns in 2020 compared to profitable companies, and the performance differential between unprofitable and profitable business was particularly acute in the technology sector.

The financial services sector also detracted from relative performance. The payments and processing businesses held in the Fund did not keep pace. In addition, the Fund’s credit sensitive financial holdings struggled, suffering from the overhang of potential credit problems given economic weakness, and the headwind of low rates and a flat yield curve. Even a small weight in this area hurt relative performance. Exposure to a company providing a leading electronic bond trading platform, which performed well, helped moderate the sector’s underperformance.

Page 2

Baird MidCap Fund

December 31, 2020 (Unaudited)

The healthcare sector positively contributed to Fund performance due to good stock picking. Notable performance from holdings in the healthcare services, medical and dental instruments, and equipment industries led to outperformance, highlighting the diversity of strength. Of note, two holdings providing technologies used in the emerging treatment systems for diabetes also continued to perform well.

The Fund’s investments in two sectors, energy, and consumer staples, each had a single holding during the year, owing to their small benchmark weights. Within energy, we sold a traditional oil and gas holding to reduce exposure to falling oil prices. While the sale proved helpful, not participating in the sector’s alternative energy industry, notably solar, hurt overall Fund performance. The consumer staples sector typically behaves in a more defensive manner; however, the Fund’s holding of a specialty potato producer underperformed both in the market decline and subsequent recovery as pandemic restrictions caused many restaurant closures, a key end market for the company.

While the Fund’s cash position is not used tactically, in such a strong market advance even the modest amount held by the Fund to accommodate additions to individual holdings or new investment ideas created a drag on relative performance.

Signs of an increased appetite for risk among market participants appeared later in the year evidenced by significant equity market strength and an uptick in mergers & acquisitions, not to mention sharp price appreciation in other corners of the market like Bitcoin and IPOs. The Fed continues to signal a desire for an accommodative monetary position to support the economy and lift inflation. We are encouraged by the prospects for the economy to recover further in 2021 but are on guard for excesses that might emerge from the significant push of money into the economic system.

The long-standing investment process underlying the Fund remains focused on identifying high-quality companies that deliver attractive returns and above average growth relative to peers. Seeking to control risk at the sector and position level is also a priority of our process, with the goal of providing lower volatility of returns for the Fund compared to its benchmark index.

Portfolio Managers:

Charles F. Severson, CFA

Kenneth M. Hemauer, CFA

Page 3

Baird MidCap Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

A December 31, 2020 summary of the Fund’s top 10 holdings and equity sector analysis compared to the Russell Midcap^® Growth Index is shown below.

Top 10 Holdings(1)			Equity Sector Analysis(2)
Monolithic Power Systems, Inc.	3.1%
Paycom Software, Inc.	2.9%
EPAM Systems, Inc.	2.8%
Five Below, Inc.	2.6%
Synopsys, Inc.	2.6%
Align Technology, Inc.	2.6%
Chipotle Mexican Grill, Inc.	2.5%
Pool Corp.	2.4%
Keysight Technologies, Inc.	2.4%
Microchip Technology, Inc.	2.3%
Net Assets:	$2,265,825,678
Portfolio Turnover Rate:	47%
Number of Equity Holdings:	60
Annualized Portfolio Expense Ratio(3):
Gross
Institutional Class:	0.82%
Investor Class:	1.07%	(4)
Net
Institutional Class:	0.82%
Investor Class:	1.07%	(4)

(1)	The Fund’s portfolio composition is subject to change and there is no assurance that the Fund will continue to hold any particular security.  Percentages shown relate to the Fund’s total net assets as of December 31, 2020.
(2)	Percentages shown in parentheses relate to the Fund’s total value of investments as of December 31, 2020, and may not add up to 100% due to rounding.
(3)	Reflects expense ratios as stated in the Fund’s current prospectus.  The Advisor has contractually agreed to limit the Fund’s total annual fund operating expenses to 0.85% of average daily net assets for the Institutional Class shares and 1.10% of average daily net assets for the Investor Class shares, at least through April 30, 2022.
(4)	Includes 0.25% 12b-1 fee.

Page 4

Baird MidCap Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on 12/31/10, assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on 12/31/10, assuming reinvestment of all distributions.

Page 5

Baird MidCap Fund

December 31, 2020 (Unaudited)

Total Returns

		Average Annual
				Since
For the Periods Ended December 31, 2020	One Year	Five Years	Ten Years	Inception(1)
Institutional Class Shares	34.81%	19.31%	14.81%	9.41%
Investor Class Shares	34.32%	18.98%	14.52%	9.14%
Russell Midcap® Growth Index(2)	35.59%	18.66%	15.04%	8.91%

(1)	For the period from December 29, 2000 (inception date) through December 31, 2020.
(2)	The Russell Midcap® Growth Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values. This index does not reflect any deduction for fees, expenses or taxes. A direct investment in the index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund focuses on growth-style stocks and therefore the performance of the Fund will typically be more volatile than the performance of funds that focus on types of stocks that have a broader investment style.  The Fund may invest up to 15% of its total assets in U.S. dollar denominated foreign securities and ADRs. Foreign investments involve additional risks such as currency rate fluctuations, political and economic instability, and different and sometimes less strict financial reporting standards and regulation.  The Fund invests a substantial portion of its assets in the stocks of mid-capitalization companies.  Mid-capitalization companies often are more volatile and face greater risks than larger, more established companies.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 6

Baird MidCap Fund

Schedule of Investments, December 31, 2020

Common Stocks

					% of
	Shares		Value		Net Assets
Aerospace & Defense
HEICO Corp.		231,150	$	30,604,260		1.3	%
Mercury Systems, Inc.(1)		374,419		32,971,337		1.5	%
				63,575,597		2.8	%
Banks
Pinnacle Financial Partners, Inc.		444,433		28,621,485		1.3	%
Biotechnology
BioMarin Pharmaceutical, Inc.(1)		162,810		14,276,809		0.6	%
Building Products
Trex Co, Inc.(1)		504,123		42,205,178		1.9	%
Capital Markets
MarketAxess Holdings, Inc.		50,955		29,072,885		1.3	%
MSCI, Inc.		63,750		28,466,287		1.2	%
				57,539,172		2.5	%
Commercial Services & Supplies
Copart, Inc.(1)		391,956		49,876,401		2.2	%
Distributors
Pool Corp.		145,453		54,181,242		2.4	%
Electrical Equipment
Generac Holdings, Inc.(1)		216,525		49,239,950		2.2	%
Rockwell Automation, Inc.		106,164		26,626,993		1.2	%
				75,866,943		3.4	%
Electronic Equipment, Instruments & Components
CDW Corp.		334,450		44,077,166		1.9	%
Keysight Technologies, Inc.(1)		404,794		53,469,239		2.4	%
				97,546,405		4.3	%
Entertainment
Take-Two Interactive Software, Inc.(1)		206,268		42,860,428		1.9	%
Food Products
Lamb Weston Holdings, Inc.		490,689		38,636,852		1.7	%
Health Care Equipment & Supplies
Align Technology, Inc.(1)		108,093		57,762,738		2.6	%
Cooper Cos., Inc.		110,116		40,007,345		1.8	%
DexCom, Inc.(1)		88,675		32,784,921		1.5	%
IDEXX Laboratories, Inc.(1)		96,113		48,044,005		2.1	%
Insulet Corp.(1)		180,592		46,164,733		2.0	%
ResMed, Inc.		206,798		43,956,983		1.9	%
				268,720,725		11.9	%

The accompanying notes are an integral part of these financial statements.

Page 7

Baird MidCap Fund

Schedule of Investments, December 31, 2020

Common Stocks (cont.)

					% of
	Shares		Value		Net Assets
Health Care Technology
Veeva Systems, Inc.(1)		180,129	$	49,040,120		2.2	%
Hotels, Restaurants & Leisure
Chipotle Mexican Grill, Inc.(1)		40,565		56,251,891		2.5	%
Household Durables
DR Horton, Inc.		260,929		17,983,227		0.8	%
Insurance
Arthur J Gallagher & Co.		312,943		38,714,179		1.7	%
IT Services
Broadridge Financial Solutions, Inc.		151,012		23,135,038		1.0	%
EPAM Systems, Inc.(1)		175,894		63,031,615		2.8	%
Euronet Worldwide, Inc.(1)		243,459		35,282,078		1.6	%
Jack Henry & Associates, Inc.		108,395		17,558,906		0.8	%
VeriSign, Inc.(1)		131,424		28,440,154		1.2	%
				167,447,791		7.4	%
Life Sciences Tools & Services
ICON PLC(1)(2)		220,694		43,030,916		1.9	%
Repligen Corp.(1)		194,092		37,193,850		1.6	%
				80,224,766		3.5	%
Machinery
Graco, Inc.		517,159		37,416,454		1.7	%
IDEX Corp.		119,314		23,767,349		1.0	%
RBC Bearings, Inc.(1)		62,232		11,142,017		0.5	%
				72,325,820		3.2	%
Media
Cable One, Inc.		20,514		45,699,448		2.0	%
Pharmaceuticals
Catalent, Inc.(1)		499,425		51,975,160		2.3	%
Jazz Pharmaceuticals PLC(1)(2)		140,821		23,242,506		1.0	%
				75,217,666		3.3	%
Professional Services
CoStar Group, Inc.(1)		45,397		41,959,539		1.8	%
TransUnion		301,983		29,962,753		1.3	%
Verisk Analytics, Inc.		193,298		40,126,732		1.8	%
				112,049,024		4.9	%
Road & Rail
J.B. Hunt Transport Services, Inc.		197,321		26,963,915		1.2	%
Semiconductors & Semiconductor Equipment
Microchip Technology, Inc.		377,199		52,094,954		2.3	%
Monolithic Power Systems, Inc.		189,063		69,240,543		3.1	%
				121,335,497		5.4	%

The accompanying notes are an integral part of these financial statements.

Page 8

Baird MidCap Fund

Schedule of Investments, December 31, 2020

Common Stocks (cont.)

						% of
	Shares		Value			Net Assets
Software
Alteryx, Inc.(1)		151,806	$	18,488,453			0.8	%
ANSYS, Inc.(1)		94,829		34,498,790			1.5	%
Aspen Technology, Inc.(1)		261,525		34,063,631			1.5	%
Paycom Software, Inc.(1)		142,882		64,618,384			2.9	%
PTC, Inc.(1)		277,343		33,172,996			1.5	%
Qualys, Inc.(1)		195,018		23,766,844			1.0	%
Synopsys, Inc.(1)		230,157		59,665,901			2.6	%
Tyler Technologies, Inc.(1)		92,712		40,470,642			1.8	%
				308,745,641			13.6	%
Specialty Retail
Burlington Stores, Inc.(1)		197,599		51,682,018			2.3	%
Five Below, Inc.(1)		344,111		60,212,543			2.6	%
Floor & Decor Holdings, Inc.(1)		258,745		24,024,473			1.1	%
Tractor Supply Co.		309,353		43,488,845			1.9	%
				179,407,879			7.9	%
Technology Hardware, Storage & Peripherals
NCR Corp.(1)		667,093		25,062,684			1.1	%
Textiles, Apparel & Luxury Goods
Under Armour, Inc.(1)		1,440,370		24,731,153			1.1	%
Trading Companies & Distributors
Fastenal Co.		552,696		26,988,146			1.2	%
Total Common Stocks
(Cost $1,250,806,335)				2,262,096,084			99.9	%
Short-Term Investment
Money Market Mutual Fund
First American Government
Obligations Fund, Class U, 0.04%(3)		9,864,530		9,864,530			0.4	%
Total Short-Term Investment
(Cost $9,864,530)				9,864,530			0.4	%
Total Investments
(Cost $1,260,670,865)				2,271,960,614			100.3	%
Liabilities in Excess of Other Assets				(6,134,936	)		(0.3	)%
TOTAL NET ASSETS			$	2,265,825,678			100.0	%

Notes to Schedule of Investments

(1)	Non-Income Producing.
(2)	Foreign Security.
(3)	Seven-Day Yield.

Industry classifications shown in the Schedule of Investments are based off of the Global Industry Classification Standard (GICS^®).  GICS^® was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”).  GICS^® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

The accompanying notes are an integral part of these financial statements.

Page 9

Baird MidCap Fund

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Equity
Common Stocks	$	2,262,096,084	$	—	$	—	$	2,262,096,084
Total Equity		2,262,096,084		—		—		2,262,096,084
Short-Term Investment
Money Market Mutual Fund		9,864,530		—		—		9,864,530
Total Short-Term Investment		9,864,530		—		—		9,864,530
Total Investments*	$	2,271,960,614	$	—	$	—	$	2,271,960,614

* Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments.

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 10

Baird Small/Mid Cap Growth Fund

December 31, 2020 (Unaudited)

Portfolio Manager's Commentary

For the year ended December 31, 2020, the Baird Small/Mid Growth Fund Institutional Class posted a total return of 44.57% as compared to 40.47% for the Russell 2500^® Growth Index, the Fund’s benchmark index.

The ability of equity markets to perform so well in 2020 amid a global pandemic and a near full stop of the economy was rather remarkable, but scientific ingenuity applied to vaccine development and significant central bank and government stimulus helped offset the devastating impacts of the virus. The Fund’s positioning entering the year rested on an expectation for continued economic growth. Importantly, our underlying philosophy of investing in a mix of diversified, high-quality growth businesses helped the Fund navigate the significant market decline as the pandemic unfolded in March, as well as the sharp market rebound that followed. The Fund produced a second consecutive year of returns in excess of 35%, exceeding the benchmark return both years.

The Fund’s consumer discretionary holdings played a key role in driving relative outperformance. Despite the pandemic’s significant toll on employment, substantial monetary and fiscal stimulus created enough of a bridge to carry market expectations beyond the worst of the pandemic’s economic impact. The positive wealth effect from a strong equity market and rising home prices and increased levels of consumer savings helped support consumer confidence and spending. Typically, to achieve very strong relative performance in this sector, it takes good stock picking in several areas, and this was the case in 2020 as the Fund holdings we selected in diversified retail, e-commerce, home-related spending, and home building, industries performed well. The Fund’s overweight positioning in the sector relative to the benchmark, based on the favorable fundamentals described above, also contributed to performance.

The healthcare sector produced the second strongest relative returns for the Fund in calendar 2020.  This was due to better than benchmark returns from businesses that either benefited from the coronavirus (COVID-19) crisis response, or were able to grow sales and earnings in spite of the crisis.  Examples include medical technology companies with novel products, vaccine manufacturing or diagnostic testing companies, or companies that provide life-saving products to treat cancer or diabetes. Furthermore, a few select Fund holdings that were adversely affected due to COVID-19, did better than benchmark returns as the market seemed to assign increased valuations to them based on future years earnings from a more “normal” economic environment.

Based on new Russell benchmark industry definitions in 2020, the financial sector weight was reduced to less than 5%.  The Fund’s relative returns were better than the benchmark due to two holdings in the portfolio, one focused on insurance sold to small businesses and the other an electronic trading platform for fixed income securities.  The Fund’s lone regional bank holding was a negative contributor to annual relative performance.

Similar to financials, the Fund holds only two telecommunications stocks, including a re-classified consumer company the Fund has owned since inception.  This small industry was also a positive contributor to relative performance for the year.

The Fund’s returns from investments in the producer durables and materials sectors exceeded benchmark performance. It is worth grouping these two sectors together given that the prospects of many companies in both tend to be heavily influenced by changes in the economic cycle. As a result, economic weakness in the first half of the year challenged the stock performance of many companies in these sectors but returns broadly improved in the second half. The standout performer for the Fund in the materials sector was a company that produces composite decking primarily for residential homes. The overall housing market was strong in 2020 and Fund holdings in companies along the home spending chain, including repair and remodel, benefitted.  Other industrial companies that benefited the portfolio included auto suppliers, HVAC distributors, and a leading manufacturer of back-up generators and storage technologies for solar energy. The Fund also held a few services businesses and their generally more stable revenue streams held up well amid the market volatility during the year.

Page 11

Baird Small/Mid Cap Growth Fund

December 31, 2020 (Unaudited)

As a partial offset to the strength in preceding sectors, the Fund’s technology holdings trailed benchmark performance. Returns were quite strong throughout the sector, particularly in the large software and services group, leaving little room for stock-selection error. In some respects, the performance headwind was a matter of style over substance. The technology sector includes an increasing number of high revenue growth, but unprofitable companies. We view sustainable revenue growth and the ability to generate a profit as important measures of quality. As a result, profitability is a fundamental characteristic that we generally require when selecting investments for the Fund, although a small amount of Fund assets can be invested in unprofitable businesses. Unprofitable companies as a group produced stronger stock price returns in 2020 compared to profitable companies, and the performance differential between unprofitable and profitable business was particularly acute in the technology sector.  So, although the Fund benefited from a few unprofitable holdings, that was not enough to keep up with strong benchmark returns.

The Fund held only one stock in total between the energy and consumer staples sectors. The consumer staples sector typically behaves in a more defensive manner; however, the Fund’s holding of a specialty potato producer underperformed both in the market decline and subsequent recovery as pandemic restrictions caused many restaurant closures, a key end market for the company.  The energy industry group in the Fund’s benchmark is majority-weighted to clean or alternative energy businesses, and having no holdings in this group was a detractor to the Fund’s relative performance for the year.

While the Fund’s cash position is not used tactically, in such a strong market advance even the modest amount held by the Fund to accommodate additions to individual holdings or new investment ideas created a drag on relative performance.

Signs of an increased appetite for risk among market participants appeared later in the year evidenced by significant equity market strength and an uptick in mergers & acquisitions, not to mention sharp price appreciation in other corners of the market like Bitcoin and IPOs. The Fed continues to signal a desire for an accommodative monetary position to support the economy and lift inflation. We are encouraged by the prospects for the economy to recover further in 2021 but are on guard for excesses that might emerge from the significant push of money into the economic system.

The long-standing investment process underlying the Fund remains focused on identifying high-quality companies that deliver attractive returns and above average growth relative to peers. Seeking to control risk at the sector and position level is also a priority of our process, with the goal of providing lower volatility of returns for the Fund compared to its benchmark index.

Portfolio Manager:

Jonathan Good

Page 12

Baird Small/Mid Cap Growth Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

A December 31, 2020 summary of the Fund’s top 10 holdings and equity sector analysis compared to the Russell 2500^® Growth Index is shown below.

Top 10 Holdings(1)			Equity Sector Analysis(2)
Five Below, Inc.	3.1%
Generac Holdings, Inc.	2.7%
SiteOne Landscape Supply, Inc.	2.7%
Pool Corp.	2.6%
Monolithic Power Systems, Inc.	2.5%
Burlington Stores, Inc.	2.4%
Euronet Worldwide, Inc.	2.4%
LHC Group, Inc.	2.3%
Insulet Corp.	2.3%
Repligen Corp.	2.2%
Net Assets:	$51,814,671
Portfolio Turnover Rate:	65%
Number of Equity Holdings:	60
Annualized Portfolio Expense Ratio(3):
Gross
Institutional Class:	2.10%
Investor Class:	2.35%	(4)
Net
Institutional Class:	0.85%
Investor Class:	1.10%	(4)

(1)	The Fund’s portfolio composition is subject to change and there is no assurance that the Fund will continue to hold any particular security.  Percentages shown relate to the Fund’s total net assets as of December 31, 2020.
(2)	Percentages shown in parentheses relate to the Fund’s total value of investments as of December 31, 2020, and may not add up to 100% due to rounding.
(3)	Reflects expense ratios as stated in the Fund’s current prospectus.  The Advisor has contractually agreed to limit the Fund’s total annual fund operating expenses to 0.85% of average daily net assets for the Institutional Class shares and 1.10% of average daily net assets for the Investor Class shares, at least through April 30, 2022.
(4)	Includes 0.25% 12b-1 fee.

Page 13

Baird Small/Mid Cap Growth Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on the Fund’s inception date (10/31/18), assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on the Fund’s inception date (10/31/18), assuming reinvestment of all distributions.

Page 14

Baird Small/Mid Cap Growth Fund

December 31, 2020 (Unaudited)

Total Returns

		Average
		Annual
	One	Since
For the Periods Ended December 31, 2020	Year	Inception(1)
Institutional Class Shares	44.57%	30.23%
Investor Class Shares	43.89%	29.75%
Russell 2500® Growth Index(2)	40.47%	27.48%

(1)	For the period from October 31, 2018 (inception date) through December 31, 2020.
(2)	The Russell 2500® Growth Index measures the performance of the Small-to-Mid Cap Growth segment of the U.S. equity universe. It includes those Russell 2500® Index companies with higher price-to-book ratios and higher forecasted growth values. This index does not reflect any deduction for fees, expenses or taxes. A direct investment in the index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund focuses on growth-style stocks and therefore the performance of the Fund will typically be more volatile than the performance of funds that focus on types of stocks that have a broader investment style.  The Fund may invest up to 15% of its total assets in U.S. dollar denominated foreign securities and ADRs. Foreign investments involve additional risks such as currency rate fluctuations, political and economic instability, and different and sometimes less strict financial reporting standards and regulation.  The Fund invests a substantial portion of its assets in the stocks of small- and mid-capitalization companies.  Small- and mid-capitalization companies often are more volatile and face greater risks than larger, more established companies.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 15

Baird Small/Mid Cap Growth Fund

Schedule of Investments, December 31, 2020

Common Stocks

					% of
	Shares		Value		Net Assets
Aerospace & Defense
HEICO Corp.		7,172	$	949,573		1.8	%
Banks
Western Alliance Bancorp		8,825		529,059		1.0	%
Biotechnology
Halozyme Therapeutics, Inc.(1)		20,725		885,165		1.7	%
Building Products
Lennox International, Inc.		1,666		456,434		0.9	%
Trex Co, Inc.(1)		10,696		895,469		1.7	%
				1,351,903		2.6	%
Commercial Services & Supplies
IAA, Inc.(1)		15,984		1,038,640		2.0	%
Construction & Engineering
MasTec, Inc.(1)		16,452		1,121,697		2.2	%
WillScot Mobile Mini Holdings Corp.(1)		22,255		515,648		1.0	%
				1,637,345		3.2	%
Containers & Packaging
AptarGroup, Inc.		6,842		936,601		1.8	%
Distributors
Pool Corp.		3,675		1,368,938		2.6	%
Diversified Telecommunication Services
Bandwidth, Inc.(1)		3,111		478,067		0.9	%
Electrical Equipment
Generac Holdings, Inc.(1)		6,216		1,413,581		2.7	%
Electronic Equipment, Instruments & Components
Littelfuse, Inc.		3,521		896,658		1.7	%
Equity Real Estate Investment Trusts (REITs)
National Storage Affiliates Trust		15,554		560,411		1.1	%
Food Products
Lamb Weston Holdings, Inc.		12,783		1,006,533		1.9	%
Health Care Equipment & Supplies
Insulet Corp.(1)		4,613		1,179,220		2.3	%
Masimo Corp.(1)		3,000		805,140		1.6	%
Novocure Ltd.(1)(2)		5,920		1,024,396		2.0	%
QUIDEL Corp.(1)		2,938		527,812		1.0	%
Shockwave Medical, Inc.(1)		6,193		642,338		1.2	%
STAAR Surgical Co.(1)		8,225		651,585		1.3	%
				4,830,491		9.4	%
Health Care Providers & Services
LHC Group, Inc.(1)		5,575		1,189,259		2.3	%

The accompanying notes are an integral part of these financial statements.

Page 16

Baird Small/Mid Cap Growth Fund

Schedule of Investments, December 31, 2020

Common Stocks (cont.)

					% of
	Shares		Value		Net Assets
Health Care Technology
Inspire Medical Systems, Inc.(1)		5,023	$	944,777		1.8	%
Phreesia, Inc.(1)		13,521		733,649		1.4	%
Vocera Communications, Inc.(1)		9,800		406,994		0.8	%
				2,085,420		4.0	%
Household Durables
LGI Homes, Inc.(1)		3,468		367,088		0.7	%
Insurance
Kinsale Capital Group, Inc.		4,207		841,947		1.6	%
Internet & Direct Marketing Retail
Etsy, Inc.(1)		5,727		1,018,891		2.0	%
IT Services
Endava PLC – ADR(1)(2)		6,895		529,191		1.0	%
Euronet Worldwide, Inc.(1)		8,209		1,189,648		2.4	%
Globant SA(1)(2)		3,334		725,512		1.4	%
Jack Henry & Associates, Inc.		4,430		717,616		1.4	%
				3,161,967		6.2	%
Life Sciences Tools & Services
ICON PLC(1)(2)		4,822		940,194		1.8	%
Repligen Corp.(1)		5,950		1,140,198		2.2	%
				2,080,392		4.0	%
Machinery
RBC Bearings, Inc.(1)		3,652		653,854		1.3	%
Toro Co.		8,402		796,846		1.5	%
				1,450,700		2.8	%
Media
Cable One, Inc.		496		1,104,949		2.1	%
Multiline Retail
Ollie’s Bargain Outlet Holdings, Inc.(1)		4,793		391,924		0.8	%
Pharmaceuticals
Catalent, Inc.(1)		9,518		990,539		1.9	%
Jazz Pharmaceuticals PLC(1)(2)		4,168		687,928		1.3	%
				1,678,467		3.2	%
Road & Rail
Schneider National, Inc.		19,228		398,020		0.8	%
Semiconductors & Semiconductor Equipment
Monolithic Power Systems, Inc.		3,499		1,281,439		2.5	%
Software
Aspen Technology, Inc.(1)		7,337		955,644		1.8	%
Avalara, Inc.(1)		5,023		828,242		1.6	%
Descartes Systems Group, Inc.(1)(2)		10,495		613,748		1.2	%
Paylocity Holding Corp.(1)		5,331		1,097,707		2.2	%

The accompanying notes are an integral part of these financial statements.

Page 17

Baird Small/Mid Cap Growth Fund

Schedule of Investments, December 31, 2020

Common Stocks (cont.)

						% of
	Shares		Value			Net Assets
Software (cont.)
PTC, Inc.(1)		7,671	$	917,528			1.8	%
Q2 Holdings, Inc.(1)		6,730		851,547			1.6	%
Qualys, Inc.(1)		5,568		678,572			1.3	%
Tyler Technologies, Inc.(1)		2,403		1,048,958			2.0	%
Upland Software, Inc.(1)		15,393		706,385			1.4	%
Zendesk, Inc.(1)		6,469		925,843			1.8	%
				8,624,174			16.7	%
Specialty Retail
Burlington Stores, Inc.(1)		4,726		1,236,085			2.4	%
Five Below, Inc.(1)		9,143		1,599,841			3.1	%
Floor & Decor Holdings, Inc.(1)		7,460		692,661			1.3	%
				3,528,587			6.8	%
Textiles, Apparel & Luxury Goods
Crocs, Inc.(1)		17,427		1,091,976			2.2	%
Under Armour, Inc.(1)		43,740		751,016			1.4	%
				1,842,992			3.6	%
Trading Companies & Distributors
SiteOne Landscape Supply, Inc.(1)		8,788		1,394,040			2.7	%
Watsco, Inc.		1,853		419,797			0.8	%
				1,813,837			3.5	%
Total Common Stocks
(Cost $36,643,897)				50,743,018			98.0	%
Short-Term Investment
Money Market Mutual Fund
First American Government
Obligations Fund, Class U, 0.04%(3)		2,197,659		2,197,659			4.2	%
Total Short-Term Investment
(Cost $2,197,659)				2,197,659			4.2	%
Total Investments
(Cost $38,841,556)				52,940,677			102.2	%
Liabilities in Excess of Other Assets				(1,126,006	)		(2.2	)%
TOTAL NET ASSETS			$	51,814,671			100.0	%

Notes to Schedule of Investments

(1)	Non-Income Producing.
(2)	Foreign Security.
(3)	Seven-Day Yield.

ADR – American Depository Receipt

Industry classifications shown in the Schedule of Investments are based off of the Global Industry Classification Standard (GICS^®).  GICS^® was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”).  GICS^® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

The accompanying notes are an integral part of these financial statements.

Page 18

Baird Small/Mid Cap Growth Fund

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Equity
Common Stocks	$	50,743,018	$	—	$	—	$	50,743,018
Total Equity		50,743,018		—		—		50,743,018
Short-Term Investment
Money Market Mutual Fund		2,197,659		—		—		2,197,659
Total Short-Term Investment		2,197,659		—		—		2,197,659
Total Investments*	$	52,940,677	$	—	$	—	$	52,940,677

* Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments.

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 19

Baird Small/Mid Cap Value Fund

December 31, 2020 (Unaudited)

Portfolio Manager’s Commentary

2020 equity returns were fueled primarily by investors’ expansion in price-to-earnings valuations as earnings for many companies collapsed under the weight of the global coronavirus (COVID-19) pandemic.  As we look to 2021, it is likely those elevated price-to-earnings valuations will unwind as company earnings recover.  Under such a scenario, we believe companies with strong profitability and earnings momentum will outperform the broader market.

Historically, deep value/low quality stocks fall the hardest during market declines and lead equities out of bear markets.  Their outsized returns tend to be strong and swift, but their returns also tend to be quickly exhausted and yield to the returns of the broader market as the overall market recovery plays out.  Therefore, we believe deep value stocks are unlikely to continue their recent winning ways as we have already been through a period of expanding price-to-earnings ratios along with low quality and beta outperformance during the most recent market downturn and subsequent recovery.

As we reflect upon performance for the calendar year 2020, we observe that the Fund performed consistent with our investment discipline.  Our focus on high-quality businesses rewarded the Fund as expected during the first quarter of 2020, providing strong downside protection as markets plummeted and powering the Fund’s outperformance of its benchmark for the quarter.  We lived off this alpha outperformance for much of the ricochet rebound during the next 8 months as deep value/low quality stocks led with the strongest returns out of the bear market.  Similar to past market cycles, the recovery of high-quality stocks that provide strong protection on the downside, seem to be proceeding at a more measured pace.  The next market phase, if we are correct, will likely favor the protracted outperformance of high-quality value stocks through the remainder of the economic cycle, which should benefit the Fund.

Portfolio Highlights

For the year ended December 31, 2020, the Baird Small/Mid Value Fund Institutional Class posted a total return of 0.48% as compared to 4.88% return for the Russell 2500^® Value Index (“Russell 2500 Value”), the Fund’s benchmark.

Significant contributors to the Fund’s relative and absolute performance for the year include the following:

• The single largest detractor to the Fund’s relative underperformance versus the Russell 2500 Value was its position in Consumer Discretionary stocks.  The Fund’s underweight to industries such as restaurants and retailers held back gains as many stocks in those areas performed ahead of our expectations despite a murky outlook for profitability as the COVID-19 pandemic worsened throughout the year.  In addition, ZAGG declined on lower demand for its mobile phone power management products, and the Fund sold the stock.

• Cerence, a provider of cognitive assistant solutions to the auto industry, skyrocketed 344% during the year as the company solidified its dominant market position with multiple contract wins throughout the year.

• ARKO, a new position in the Fund, drifted lower after purchase and was a meaningful detractor for the year.  Despite closing two attractive acquisitions in the convenience store space, the stock ended the year down 14%, likely due to a lack of Wall Street coverage.  We took the opportunity to add to the Fund’s position.

• The Fund’s Real Estate Investment Trust (REIT) exposure meaningfully outperformed the benchmark sector performance due to superior security selection.  Standout gains were posted by CyrusOne, a data center operator, and a hotel REIT,  RLJ Lodging Trust, which was purchased on the heels of positive efficacy news for COVID-19 vaccines.

• The Fund’s Utility holdings gained more than 35% for the year, versus a decline for that sector in the Fund’s benchmark, the Russell 2500 Value.  Our focus on renewable energy suppliers, Atlantica Yield and Algonquin Power, led to strong absolute and relative returns.

• Despite gaining 22% for the year, the Fund’s Healthcare position trailed the corresponding benchmark sector performance largely due to underperformance of Hill-Rom Holdings as hospital capital spending suffered due to the pandemic.

Page 20

Baird Small/Mid Cap Value Fund

December 31, 2020 (Unaudited)

• The Fund’s intentional underweight to the Energy sector boosted performance as it was the worst performing sector in the Russell 2500 Value, down 40%.

• Mixed performance among the Fund’s Industrial holdings held back absolute gains.  E-Commerce logistics providers, Shyft Group and Air Transport Services were winners while FTI Consulting and Astronics were detractors.

• The Fund’s overweight to Information Technology and superior security selection contributed positively to performance.  The largest sector by weight in the Fund’s portfolio returned 34% during the year.  Notable winners include Immersion Technology and SkyWorks Solutions.

Portfolio Manager:

Michelle Stevens, CFA

Page 21

Baird Small/Mid Cap Value Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

A December 31, 2020 summary of the Fund’s top 10 holdings and equity sector analysis compared to the Russell 2500^® Value Index is shown below.

Top 10 Holdings(1)			Equity Sector Analysis(2)
Atlantica Yield PLC	3.7%
Axos Financial, Inc.	3.2%
Arko Corp.	3.2%
Boingo Wireless, Inc.	3.2%
Laboratory Corp. of America Holdings	3.1%
DaVita, Inc.	3.0%
j2 Global, Inc.	2.9%
Urban Outfitters, Inc.	2.7%
Science Applications International Corp.	2.7%
Air Transport Services Group, Inc.	2.6%
Net Assets:	$23,109,266
Portfolio Turnover Rate:	84%
Number of Equity Holdings:	45
Annualized Portfolio Expense Ratio(3):
Gross
Institutional Class:	1.59%
Investor Class:	1.84%	(4)
Net
Institutional Class:	0.85%
Investor Class:	1.10%	(4)

(1)	The Fund’s portfolio composition is subject to change and there is no assurance that the Fund will continue to hold any particular security.  Percentages shown relate to the Fund’s total net assets as of December 31, 2020.
(2)	Percentages shown in parentheses relate to the Fund’s total value of investments as of December 31, 2020, and may not add up to 100% due to rounding.
(3)	Reflects expense ratios as stated in the Fund’s current prospectus.  The Advisor has contractually agreed to limit the Fund’s total annual fund operating expenses to 0.85% of average daily net assets for the Institutional Class shares and 1.10% of average daily net assets for the Investor Class shares, at least through April 30, 2022.
(4)	Includes 0.25% 12b-1 fee.

Page 22

Baird Small/Mid Cap Value Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on the Fund’s inception date (11/30/15), assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on the Fund’s inception date (11/30/15), assuming reinvestment of all distributions.

Page 23

Baird Small/Mid Cap Value Fund

December 31, 2020 (Unaudited)

Total Returns

		Average Annual
				Since
For the Periods Ended December 31, 2020	One Year	Three Years	Five Years	Inception(1)
Institutional Class Shares	0.48%	0.28%	5.94%	4.85%
Investor Class Shares	0.15%	0.01%	5.64%	4.56%
Russell 2500® Value Index(2)	4.88%	4.34%	9.43%	8.26%

(1)	For the period from November 30, 2015 (inception date) through December 31, 2020.
(2)	The Russell 2500® Value Index measures the performance of the small cap value segment of the U.S. equity universe. It includes those Russell 2500® Index companies with lower price-to-book ratios and lower forecasted growth values. This index does not reflect any deduction for fees, expenses or taxes. A direct investment in the index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund focuses on small to mid cap value style stocks and therefore the performance of the Fund may be more volatile than the performance of funds that focus on types of stocks that have a broader investment style.  The Fund may invest up to 15% of its total assets in U.S. dollar denominated foreign securities and ADRs. Foreign investments involve additional risks such as currency rate fluctuations and the potential for political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund invests a substantial portion of its assets in the stocks of small- and mid-capitalization companies. Small- and mid-capitalization companies often are more volatile and face greater risks than larger, more established companies.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 24

Baird Small/Mid Cap Value Fund

Schedule of Investments, December 31, 2020

Common Stocks

					% of
	Shares		Value		Net Assets
Air Freight & Logistics
Air Transport Services Group, Inc.(1)		19,403	$	608,090		2.6	%
Banks
TCF Financial Corp.		9,190		340,214		1.5	%
Chemicals
Avient Corp.		11,235		452,546		2.0	%
Commercial Services & Supplies
ACCO Brands Corp.		51,679		436,688		1.9	%
Communications Equipment
Ciena Corp.(1)		6,954		367,519		1.6	%
F5 Networks, Inc.(1)		3,018		530,987		2.3	%
				898,506		3.9	%
Diversified Consumer Services
OneSpaWorld Holdings Ltd.(2)		44,122		447,397		1.9	%
Electrical Equipment
nVent Electric PLC(2)		15,397		358,596		1.6	%
Equity Real Estate Investment Trusts (REITs)
Agree Realty Corp.		7,489		498,618		2.2	%
CyrusOne, Inc.		5,729		419,076		1.8	%
EastGroup Properties, Inc.		2,571		354,952		1.5	%
Gaming and Leisure Properties, Inc.		8,022		340,124		1.5	%
Host Hotels & Resorts, Inc.		33,502		490,135		2.1	%
National Retail Properties, Inc.		8,576		350,930		1.5	%
RLJ Lodging Trust		31,362		443,772		1.9	%
				2,897,607		12.5	%
Food Products
Nomad Foods Ltd.(1)(2)		21,426		544,649		2.4	%
Simply Good Foods Co.(1)		18,513		580,568		2.5	%
				1,125,217		4.9	%
Health Care Equipment & Supplies
ICU Medical, Inc.(1)		1,851		397,021		1.7	%
Health Care Providers & Services
DaVita, Inc.(1)		5,916		694,538		3.0	%
Laboratory Corp. of America Holdings(1)		3,482		708,761		3.1	%
				1,403,299		6.1	%
Household Durables
Helen of Troy Ltd.(1)(2)		1,279		284,181		1.2	%
Independent Power and Renewable Electricity Producers
Atlantica Yield PLC(2)		22,316		847,562		3.7	%

The accompanying notes are an integral part of these financial statements.

Page 25

Baird Small/Mid Cap Value Fund

Schedule of Investments, December 31, 2020

Common Stocks (cont.)

					% of
	Shares		Value		Net Assets
Insurance
American Financial Group, Inc.		6,619	$	579,956		2.5	%
Fidelity National Financial, Inc.		14,590		570,323		2.5	%
Old Republic International Corp.		27,543		542,873		2.3	%
				1,693,152		7.3	%
IT Services
CACI International, Inc.(1)		1,803		449,542		1.9	%
Leidos Holdings, Inc.		4,181		439,507		1.9	%
Science Applications International Corp.		6,519		616,958		2.7	%
				1,506,007		6.5	%
Machinery
Shyft Group, Inc.		21,269		603,614		2.6	%
Mortgage Real Estate Investment Trusts (REITs)
Blackstone Mortgage Trust, Inc.		12,826		353,100		1.5	%
Multi-Utilities
Algonquin Power & Utilities Corp.(2)		22,278		366,696		1.6	%
Road & Rail
Knight-Swift Transportation Holdings, Inc.		11,727		490,423		2.1	%
Semiconductors & Semiconductor Equipment
Silicon Motion Technology Corp. – ADR(2)		10,520		506,538		2.2	%
Software
Cerence, Inc.(1)		3,976		399,508		1.7	%
j2 Global, Inc.(1)		6,730		657,454		2.9	%
				1,056,962		4.6	%
Specialty Retail
Arko Corp.(1)		81,987		737,884		3.3	%
Tractor Supply Co.		3,495		491,327		2.1	%
Urban Outfitters, Inc.(1)		24,684		631,910		2.7	%
Williams-Sonoma, Inc.		3,005		306,029		1.3	%
				2,167,150		9.4	%
Technology Hardware, Storage & Peripherals
Immersion Corp.(1)		52,177		589,078		2.5	%
Thrifts & Mortgage Finance
Axos Financial, Inc.(1)		19,695		739,152		3.2	%
Essent Group Ltd.(2)		13,500		583,200		2.5	%
Merchants Bancorp		20,706		572,107		2.5	%
				1,894,459		8.2	%

The accompanying notes are an integral part of these financial statements.

Page 26

Baird Small/Mid Cap Value Fund

Schedule of Investments, December 31, 2020

Common Stocks (cont.)

						% of
	Shares		Value			Net Assets
Wireless Telecommunication Services
Boingo Wireless, Inc.(1)		57,812	$	735,369			3.2	%
Total Common Stocks
(Cost $17,947,830)				22,459,472			97.2	%
Short-Term Investment
Money Market Mutual Fund
First American Government
Obligations Fund, Class U, 0.04%(3)		955,999		955,999			4.1	%
Total Short-Term Investment
(Cost $955,999)				955,999			4.1	%
Total Investments
(Cost $18,903,829)				23,415,471			101.3	%
Liabilities in Excess of Other Assets				(306,205	)		(1.3	)%
TOTAL NET ASSETS			$	23,109,266			100.0	%

Notes to Schedule of Investments

(1)	Non-Income Producing.
(2)	Foreign Security.
(3)	Seven-Day Yield.

ADR – American Depository Receipt

Industry classifications shown in the Schedule of Investments are based off of the Global Industry Classification Standard (GICS^®).  GICS^® was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”).  GICS^® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

The accompanying notes are an integral part of these financial statements.

Page 27

Baird Small/Mid Cap Value Fund

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Equity
Common Stocks	$	22,459,472	$	—	$	—	$	22,459,472
Total Equity		22,459,472		—		—		22,459,472
Short-Term Investment
Money Market Mutual Fund		955,999		—		—		955,999
Total Short-Term Investment		955,999		—		—		955,999
Total Investments*	$	23,415,471	$	—	$	—	$	23,415,471

* Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments.

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 28

Baird SmallCap Value Fund

December 31, 2020 (Unaudited)

Portfolio Manager’s Commentary

2020 equity returns were fueled primarily by investors’ expansion in price-to-earnings valuations as earnings for many companies collapsed under the weight of the global coronavirus (COVID-19) pandemic.  As we look to 2021, it is likely those elevated price-to-earnings valuations will unwind as company earnings recover.  Under such a scenario, we believe companies with strong profitability and earnings momentum will outperform the broader market.

Historically, deep value/low quality stocks fall the hardest during market declines and lead equities out of bear markets.  Their outsized returns tend to be strong and swift, but their returns also tend to be quickly exhausted and yield to the returns of the broader market as the overall market recovery plays out.  Therefore, we believe deep value stocks are unlikely to continue their recent winning ways as we have already been through a period of expanding price-to-earnings ratios along with low quality and beta outperformance during the most recent market downturn and subsequent recovery.

As we reflect upon performance for the calendar year 2020, we observe that the Fund performed consistent with our investment discipline.  Our focus on high-quality businesses rewarded the Fund as expected during the first quarter of 2020, providing strong downside protection as markets plummeted and powering the Fund’s outperformance of its benchmark for the quarter.  We lived off this alpha outperformance for much of the ricochet rebound during the next 8 months as deep value/low quality stocks led with the strongest returns out of the bear market.  Similar to past market cycles, the recovery of high-quality stocks that provide strong protection on the downside, seem to be proceeding at a more measured pace.  The next market phase, if we are correct, will likely favor the protracted outperformance of high-quality value stocks through the remainder of the economic cycle, which should benefit the Fund.

Portfolio Highlights

For the year ended December 31, 2020, the Baird SmallCap Value Fund Institutional Class posted a total return of 2.85% as compared to 4.63% return for the Russell 2000^® Value Index (“Russell 2000 Value”), the Fund’s benchmark.

Significant contributors to the Fund’s relative and absolute performance for the year include the following:

• The single largest detractor to the Fund’s relative underperformance versus the Russell 2000 Value was its position in Consumer Discretionary stocks.  The Fund’s underweight to industries such as restaurants and retailers held back gains as many stocks in those areas performed ahead of our expectations despite a murky outlook for profitability as the COVID-19 pandemic worsened throughout the year.  In addition, ZAGG declined on lower demand for its mobile phone power management products, and the Fund sold the stock.

• The Fund’s Utility holdings gained more than 27% for the year, versus a decline for that sector in the Fund’s benchmark, the Russell 2000 Value.  Our focus on renewable energy suppliers, Atlantica Yield and Algonquin Power led to strong absolute and relative returns and made it the most significant contributor to Fund performance for the year.

• Cerence, a provider of cognitive assistant solutions to the auto industry, skyrocketed 344% during the year as the company solidified its dominant market position with multiple contract wins throughout the year.

• The Fund’s intentional underweight to the Energy sector boosted performance as it was the worst performing sector in the Russell 2000 Value, down 38%.

• ARKO, a new position in the Fund, drifted lower after purchase and was a meaningful detractor for the year.  Despite closing two attractive acquisitions in the convenience store space, the stock ended the year down 14%, likely due to a lack of Wall Street coverage.  We took the opportunity to add to the Fund’s position.

Page 29

Baird SmallCap Value Fund

December 31, 2020 (Unaudited)

• The Fund’s Real Estate Investment Trust (REIT) exposure meaningfully outperformed the benchmark sector performance due to superior security selection.  Standout gains were posted by CyrusOne, a data center operator, and hotel REITs (Ryman Hospitality and RLJ Lodging Trust), which were purchased on the heels of positive efficacy news for COVID-19 vaccines.

• Despite gaining 22% for the year, the Fund’s Healthcare position trailed the corresponding benchmark sector performance largely due to underperformance of Eagle Pharmaceutical and Hill-Rom as hospital capital spending suffered due to the pandemic.

• Financials were another bright spot in the Fund both due to an underweight position and better security selection.  Despite negative returns for the sector as a whole, many of the Fund’s long-time holdings such as Axos Financial, Merchants Bank, and Old Republic posted strong gains.

• The Fund’s overweight to Information Technology and superior security selection contributed positively to performance.  The largest sector by weight in the Fund’s portfolio returned 29% during the year.  Notable winners include Immersion Technology, Knowles Group and F5 Networks.

Portfolio Manager:

Michelle Stevens, CFA

Page 30

Baird SmallCap Value Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

A December 31, 2020 summary of the Fund’s top 10 holdings and equity sector analysis compared to the Russell 2000^® Value Index is shown below.

Top 10 Holdings(1)			Equity Sector Analysis(2)
Atlantica Yield PLC	5.3%
Cerence, Inc.	4.9%
j2 Global, Inc.	4.5%
Axos Financial, Inc.	4.1%
Boingo Wireless, Inc.	3.7%
CACI International, Inc.	3.4%
Algonquin Power & Utilities Corp.	3.1%
Merchants Bancorp	3.1%
ICU Medical, Inc.	2.8%
Preferred Bank	2.8%
Net Assets:	$30,724,055
Portfolio Turnover Rate:	61%
Number of Equity Holdings:	43
Annualized Portfolio Expense Ratio(3):
Gross
Institutional Class:	1.44%
Investor Class:	1.69%	(4)
Net
Institutional Class:	0.95%
Investor Class:	1.20%	(4)

(1)	The Fund’s portfolio composition is subject to change and there is no assurance that the Fund will continue to hold any particular security.  Percentages shown relate to the Fund’s total net assets as of December 31, 2020.
(2)	Percentages shown in parentheses relate to the Fund’s total value of investments as of December 31, 2020, and may not add up to 100% due to rounding.
(3)	Reflects expense ratios as stated in the Fund’s current prospectus.  The Advisor has contractually agreed to limit the Fund’s total annual fund operating expenses to 0.95% of average daily net assets for the Institutional Class shares and 1.20% of average daily net assets for the Investor Class shares, at least through April 30, 2022.
(4)	Includes 0.25% 12b-1 fee.

Page 31

Baird SmallCap Value Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on the Fund’s inception date (05/01/12), assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on the Fund’s inception date (05/01/12), assuming reinvestment of all distributions.

Page 32

Baird SmallCap Value Fund

December 31, 2020 (Unaudited)

Total Returns

		Average Annual
				Since
For the Periods Ended December 31, 2020	One Year	Three Years	Five Years	Inception(1)
Institutional Class Shares	2.85%	0.58%	6.69%	7.73%
Investor Class Shares	2.54%	0.31%	6.43%	7.46%
Russell 2000® Value Index(2)	4.63%	3.72%	9.65%	9.56%

(1)	For the period from May 1, 2012 (inception date) through December 31, 2020.
(2)	The Russell 2000® Value Index measures the performance of the small-cap value segment of the U.S. equity universe. It includes those Russell 2000® Index companies with lower price-to-book ratios and lower forecasted growth values. This index does not reflect any deduction for fees, expenses or taxes. A direct investment in the index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund focuses on small cap value style stocks and therefore the performance of the Fund may be more volatile than the performance of funds that focus on types of stocks that have a broader investment style.  The Fund may invest up to 15% of its total assets in U.S. dollar denominated foreign securities and ADRs. Foreign investments involve additional risks such as currency rate fluctuations and the potential for political and economic instability, and different and sometimes less strict financial reporting standards and regulation. The Fund invests a substantial portion of its assets in the stocks of small-capitalization companies. Small-capitalization companies often are more volatile and face greater risks than larger, more established companies.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 33

Baird SmallCap Value Fund

Schedule of Investments, December 31, 2020

Common Stocks

					% of
	Shares		Value		Net Assets
Air Freight & Logistics
Air Transport Services Group, Inc.(1)		25,427	$	796,882		2.6	%
Banks
Preferred Bank		16,963		856,123		2.8	%
Chemicals
Avient Corp.		14,860		598,561		2.0	%
Commercial Services & Supplies
ACCO Brands Corp.		77,534		655,162		2.1	%
Communications Equipment
Ciena Corp.(1)		8,751		462,490		1.5	%
F5 Networks, Inc.(1)		2,805		493,512		1.6	%
				956,002		3.1	%
Diversified Consumer Services
OneSpaWorld Holdings Ltd.(2)		68,971		699,366		2.3	%
Electrical Equipment
nVent Electric PLC(2)		30,710		715,236		2.3	%
Electronic Equipment, Instruments & Components
Knowles Corp.(1)		16,380		301,883		1.0	%
Equity Real Estate Investment Trusts (REITs)
Agree Realty Corp.		9,092		605,345		2.0	%
CyrusOne, Inc.		10,384		759,590		2.5	%
EastGroup Properties, Inc.		3,006		415,008		1.4	%
Gaming and Leisure Properties, Inc.		13,042		552,970		1.8	%
QTS Realty Trust, Inc.		7,487		463,296		1.5	%
RLJ Lodging Trust		46,706		660,890		2.2	%
Ryman Hospitality Properties, Inc.		10,173		689,322		2.2	%
				4,146,421		13.6	%
Food Products
Nomad Foods Ltd.(1)(2)		24,976		634,890		2.1	%
Simply Good Foods Co.(1)		20,628		646,894		2.1	%
				1,281,784		4.2	%
Health Care Equipment & Supplies
ICU Medical, Inc.(1)		4,072		873,403		2.8	%
Household Durables
Helen of Troy Ltd.(1)(2)		1,844		409,718		1.3	%
Independent Power and Renewable Electricity Producers
Atlantica Yield PLC(1)		42,949		1,631,203		5.3	%

The accompanying notes are an integral part of these financial statements.

Page 34

Baird SmallCap Value Fund

Schedule of Investments, December 31, 2020

Common Stocks (cont.)

					% of
	Shares		Value		Net Assets
Insurance
Everest Re Group Ltd.(2)		1,723	$	403,337		1.3	%
First American Financial Corp.		8,237		425,277		1.4	%
Old Republic International Corp.		38,068		750,320		2.4	%
				1,578,934		5.1	%
IT Services
CACI International, Inc.(1)		4,213		1,050,427		3.4	%
Science Applications International Corp.		5,909		559,228		1.8	%
Verra Mobility Corp.(1)		42,953		576,429		1.9	%
				2,186,084		7.1	%
Machinery
Shyft Group, Inc.		19,543		554,630		1.8	%
Mortgage Real Estate Investment Trusts (REITs)
Blackstone Mortgage Trust, Inc.		17,560		483,427		1.6	%
Multi-Utilities
Algonquin Power & Utilities Corp.(2)		57,940		953,693		3.1	%
Road & Rail
Knight-Swift Transportation Holdings, Inc.		14,383		601,497		2.0	%
Semiconductors & Semiconductor Equipment
Silicon Motion Technology Corp. – ADR(2)		10,361		498,882		1.6	%
Software
Cerence, Inc.(1)		15,005		1,507,702		4.9	%
j2 Global, Inc.(1)		14,152		1,382,509		4.5	%
				2,890,211		9.4	%
Specialty Retail
Arko Corp.(1)		92,971		836,739		2.7	%
Urban Outfitters, Inc.(1)		23,635		605,056		2.0	%
				1,441,795		4.7	%
Technology Hardware, Storage & Peripherals
Immersion Corp.(1)		70,347		794,218		2.6	%
Thrifts & Mortgage Finance
Axos Financial, Inc.(1)		33,913		1,272,755		4.1	%
Essent Group Ltd.(2)		13,787		595,598		1.9	%
Merchants Bancorp		34,061		941,106		3.1	%
Meta Financial Group, Inc.		11,666		426,509		1.4	%
				3,235,968		10.5	%
Wireless Telecommunication Services
Boingo Wireless, Inc.(1)		90,240		1,147,853		3.7	%
Total Common Stocks
(Cost $21,388,865)				30,288,936		98.6	%

The accompanying notes are an integral part of these financial statements.

Page 35

Baird SmallCap Value Fund

Schedule of Investments, December 31, 2020

Short-Term Investment

					% of
	Shares		Value		Net Assets
Money Market Mutual Fund
First American Government
Obligations Fund, Class U, 0.04%(3)		365,926	$	365,926		1.2	%
Total Short-Term Investment
(Cost $365,926)				365,926		1.2	%
Total Investments
(Cost $21,754,791)				30,654,862		99.8	%
Other Assets in Excess of Liabilities				69,193		0.2	%
TOTAL NET ASSETS			$	30,724,055		100.0	%

Notes to Schedule of Investments

(1)	Non-Income Producing.
(2)	Foreign Security.
(3)	Seven-Day Yield.

ADR – American Depository Receipt

Industry classifications shown in the Schedule of Investments are based off of the Global Industry Classification Standard (GICS^®).  GICS^® was developed by and/or is the exclusive property of MSCI, Inc (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”).  GICS^® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

The accompanying notes are an integral part of these financial statements.

Page 36

Baird SmallCap Value Fund

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Equity
Common Stocks	$	30,288,936	$	—	$	—	$	30,288,936
Total Equity		30,288,936		—		—		30,288,936
Short-Term Investment
Money Market Mutual Fund		365,926		—		—		365,926
Total Short-Term Investment		365,926		—		—		365,926
Total Investments*	$	30,654,862	$	—	$	—	$	30,654,862

* Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments.

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 37

Chautauqua International Growth Fund

December 31, 2020 (Unaudited)

Portfolio Manager’s Commentary

In 2020, the Chautauqua International Growth Fund Institutional Class returned 39.84%, significantly outperforming its benchmark, the MSCI ACWI ex U.S. Index^®, which returned 10.65%.

The Fund typically holds a limited number of companies (25 to 35) invested primarily in equity securities of non-U.S. companies with medium to large market capitalizations. Stock selection accounted for the majority of the outperformance of the Chautauqua International Growth Fund, as compared to the MSCI ACWI ex U.S. Index^®. Portfolio allocation was also a meaningful contributor to the outperformance, led by an overweight in the information technology sector and an underweight in the energy sector, which we exited in the first quarter. Investments in the information technology, health care, and consumer discretionary sectors drove the majority of the outperformance, and standouts such as Adyen, SolarEdge, ASML, Genmab, WuXi Biologics, TAL Education, and BYD were among the top contributors in the entire portfolio. On the other hand, investments in the financials sector were a modest detractor from performance, especially investments in Bank Rakyat, HDFC Bank, and DBS.

Heading into 2020, economic fundamentals were already weak and stock market performance had been overly reliant on monetary accommodation. We were cautious. In the fourth quarter of 2019, we had realigned the Fund towards portfolio companies we viewed as having more economically resilient business models and lower valuation multiples. At the time, this was an extra measure of care to insulate the Fund should the fragile global economy topple over.

Our cautious portfolio positioning at the start of the year proved to be prescient. The coronavirus (COVID-19) pandemic spread around the world in the first quarter. Financial assets were battered, and stock markets suffered a bear market decline. We were able to provide some downside protection in this environment because of the portfolio changes we made in the fourth quarter of 2019.

Central banks and governments around the world responded to the crisis with large waves of fiscal and monetary stimulus, amounting to many trillions of dollars worldwide. This served to prop up afflicted consumers and businesses, stabilize financial markets, and guarantee liquidity almost anywhere it was needed. We took advantage of market dislocations amidst the selloff to initiate positions in several companies that we had analyzed and were monitoring on our watchlist. We initiated positions in Adyen, SolarEdge, Prosus, Beigene, and WuXi Biologics. These investments proved to be among the most beneficial contributors to the Fund’s performance in 2020.

Markets rallied vigorously in the second quarter. The dramatic rise in stock prices was accompanied by extraordinary monetary accommodation, quantitative easing, and repeated signaling by central banks of a do-anything willingness to bolster economies. Not only did this amount to a lower discount rate, which inflates the value of financial assets, but it also provided a psychological backstop for investors. We were able to again outperform in the second quarter as result of the significant repositioning amidst the selloff in the first quarter.

Markets grinded higher again in the third quarter, and our outperformance continued. However, we grew concerned with the disconnect between stock prices and fundamentals. The economic recovery was stagnant or uneven, meanwhile we believed valuation multiples climbed to excessive levels relative to earnings, which had collapsed. We made changes in the Fund’s portfolio to reflect this caution, by taking profits from some high valuation “winners”, redeploying to lower valuation holdings, and initiating new positions in Brookfield Renewable and Fairfax Financial.

In the fourth quarter, positive developments of a COVID-19 vaccine improved market sentiment even further, forming the basis for a sustainable reopening scenario and sending stocks even higher. More so, this helped unleash a powerful “pro-cyclical” rotation, and value stocks substantially outperformed growth stocks. We were able to again outperform in this market environment, aided by the prior changes in the portfolio. Because the market continued to rally, we made additional changes to the portfolio to reflect our caution. We reduced positions in Adyen, Bank Rakyat, DBS Group, and SolarEdge. Proceeds were used to increase positions in Brookfield Renewable, BYD, Fairfax Financial, Novo Nordisk, Sinopharm, TAL Education, Tata Consultancy, Temenos, and WuXi Biologics.

Page 38

Chautauqua International Growth Fund

December 31, 2020 (Unaudited)

Outlook

Due to the vaccine developments, the most likely economic scenario is one that improves in the next year. And we believe, we have averted a disaster scenario in which the pandemic continues to grow unchecked. As the vaccine is administered to larger swaths of the population, herd immunity is expected to increase, and the spread of the disease should decline. Vaccine manufacturers have announced expected availability in the billions of doses. The most uncertain aspects pertain to how much reach in the next year medical professionals will actually have administering the vaccines, and when emerging countries can obtain their share.

Central banks have become much more optimistic about the prospects for a rebound, albeit shallower and choppier than originally anticipated, in the next year. Many macroeconomic indicators have stabilized and are no longer deteriorating, with the exception of services and consumption data that are more sensitive to weakness in domestic economies. However, the recent resurgence of COVID-19 cases is expected to have follow-through effects on near-term economic growth. And while downside risks have been reduced in recent months, the most likely risks to economic recovery pertain to renewed containment measures. The availability of the vaccine is positive for the economic outlook and is further assisted by ongoing supportive measures by central banks and governments.

Monetary policy will continue to be an important component of the market narrative, but a depleted arsenal and general fatigue also play into worries that monetary policy is increasingly pushing on a string. Therefore, fiscal policy will play an even more critical role for supporting economies in these difficult times. Fortunately, recent important fiscal stimulus packages were passed and made it through political gridlock.

The rotation from growth outperformance to value outperformance was not terribly surprising. The interesting question is whether the rotation might be sustainable, especially as recent instances of growth to value rotations have tended to fizzle. The case that value stocks have more room to grow in price revolves around expectations for more positive vaccine developments and a rebound in corporate earnings. Furthermore, cyclical sectors should be a beneficiary of the economic reopening. Valuation differences between growth stocks and value stocks are still near their widest point over the last ten years. And overall, we believe market valuations have become expensive relative to current earnings power, and they are likely to stay elevated next year as central banks continue to ease into the recovery.

While valuations are high across the market, on a relative basis, they are still most attractive for international stocks. The pandemic has delivered a global growth shock, but in doing so, it has accelerated the timeline for several mega trends that the Fund has been actively investing in, such as productivity enhancement (robotics, automation, and software), e-commerce, electronic payments, and rapid drug development. Furthermore, many portfolio companies have been able to continue to deliver growth even in this recessionary environment, which is an exceptionally rare trait.

We have made adjustments to the Fund portfolio, including realizing profits from some high valuation “winners”, redeploying to lower valuation holdings, and raising cash levels so we hold some dry powder. On the margin, these changes should help mitigate some downside if markets become less hospitable, and we continue to contemplate further adjustments for a more conservative balance of growth, profitability, and valuation in the portfolio.

Respectfully Submitted,

Portfolio Managers:

Brian Beitner, CFA

Jesse A. Flores, CFA

Haicheng Li, CFA

Nathaniel R. Velarde

Page 39

Chautauqua International Growth Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

A December 31, 2020 summary of the Fund’s top 10 holdings and equity sector analysis compared to the MSCI ACWI ex USA Index is shown below.

Top 10 Holdings(1)
Wuxi Biologics Cayman, Inc.	5.5%	Net Assets:	$322,471,108
Genmab A/S	4.9%	Portfolio Turnover Rate:	31%
ASML Holding NV	4.9%	Number of Equity Holdings:	30
Tata Consultancy Services Ltd.	4.5%
Novo Nordisk A/S – ADR	4.4%	Annualized Portfolio Expense Ratio(3):
TAL Education Group – ADR	4.2%	Gross
Temenos Group AG	4.2%	Institutional Class:	0.96%
HDFC Bank Ltd. – ADR	4.1%	Investor Class:	1.21%	(4)
Constellation Software, Inc.	3.9%
Keyence Corp.	3.9%	Net
		Institutional Class:	0.80%
		Investor Class:	1.05%	(4)
Equity Sector Analysis(2)		Country Allocation(2)

(1)	The Fund’s portfolio composition is subject to change and there is no assurance that the Fund will continue to hold any particular security.  Percentages shown relate to the Fund’s total net assets as of December 31, 2020.
(2)	Percentages shown in parentheses relate to the Fund’s total value of investments as of December 31, 2020, and may not add up to 100% due to rounding.
(3)	Reflects expense ratios as stated in the Fund’s current prospectus.  The Advisor has contractually agreed to limit the Fund’s total annual fund operating expenses to 0.80% of average daily net assets for the Institutional Class shares and 1.05% of average daily net assets for the Investor Class shares, at least through April 30, 2022.
(4)	Includes 0.25% 12b-1 fee.

Page 40

Chautauqua International Growth Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on the Fund’s inception date (04/15/16), assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on the Fund’s inception date (04/15/16), assuming reinvestment of all distributions.

Page 41

Chautauqua International Growth Fund

December 31, 2020 (Unaudited)

Total Returns

		Average Annual
			Since
For the Periods Ended December 31, 2020	One Year	Three Years	Inception(1)
Institutional Class Shares	39.84%	13.75%	14.81%
Investor Class Shares	39.37%	13.41%	14.52%
MSCI ACWI ex USA Index(2)	10.65%	4.88%	9.16%

(1)

For the period from April 15, 2016 (inception date) through December 31, 2020.

(2)

The MSCI ACWI ex USA Index is a market-capitalization-weighted index maintained by MSCI, Inc. and designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies. The MSCI ACWI ex USA Index includes both developed and emerging markets.  This index does not reflect any deduction for fees, expenses or taxes. A direct investment in the index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund focuses primarily on non-U.S. stocks with medium to large market capitalizations and therefore the performance of the Fund may be more volatile than the performance of funds that focus on types of stocks that have a broader investment style.  Under normal market conditions, the Fund will invest at least 65% of its total assets in non-U.S. companies. Foreign investments involve additional risks such as currency rate fluctuations and the potential for political and economic instability, and different and sometimes less strict financial reporting standards and regulation.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. In addition, the United Kingdom withdrew from the European Union on January 31, 2020 following a June 2016 referendum referred to as “Brexit.”  Although the EU and UK agreed to a trade deal in December 2020, there is significant market uncertainty regarding Brexit’s ramifications, and the range of possible political, regulatory, economic, and market outcomes are difficult to predict. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 42

Chautauqua International Growth Fund

Schedule of Investments, December 31, 2020

Common Stocks

					% of
	Shares		Value		Net Assets
Application Software
Atlassian Corp. PLC (Australia)(1)		35,843	$	8,382,602		2.6	%
Temenos Group AG (Switzerland)(2)		96,483		13,442,938		4.2	%
				21,825,540		6.8	%
Asset Management & Custody Banks
Julius Baer Group Ltd. (Switzerland)(2)		117,522		6,770,622		2.1	%
Automobile Manufacturers
BYD Co. Ltd. (China)(2)		272,341		7,170,261		2.2	%
Biotechnology
BeiGene Ltd. – ADR (China)(1)		36,537		9,440,795		2.9	%
Genmab A/S (Denmark)(1)(2)		39,151		15,875,492		4.9	%
				25,316,287		7.8	%
Diversified Banks
Bank Rakyat Indonesia Persero Tbk PT (Indonesia)(2)		41,679,076		12,391,333		3.9	%
DBS Group Holdings Ltd. (Singapore)(2)		652,183		12,359,345		3.8	%
				24,750,678		7.7	%
Diversified Support Services
Recruit Holdings Co. Ltd. (Japan)(2)		81,879		3,439,160		1.1	%
Education Services
TAL Education Group – ADR (China)(1)		188,114		13,452,032		4.2	%
Electronic Equipment & Instruments
Keyence Corp. (Japan)(2)		22,259		12,521,067		3.9	%
Environmental & Facilities Services
Waste Connections, Inc. (Canada)		111,009		11,386,194		3.5	%
Healthcare Distributors
Sinopharm Group Co. Ltd. (China)(2)		3,122,228		7,573,980		2.4	%
Industrial Machinery
FANUC Corp. (Japan)(2)		40,641		10,032,195		3.1	%
Information Technology
Constellation Software, Inc. (Canada)		9,784		12,704,981		3.9	%
Topicus.com, Inc. (Canada)(1)(2)		18,196		64,110		0.0	%
				12,769,091		3.9	%
Internet & Direct Marketing Retail
Prosus NV (Netherlands)(2)		101,988		11,012,465		3.4	%
Internet Retail
Alibaba Group Holding Ltd. – ADR (China)(1)		46,702		10,868,957		3.4	%
IT Services
Adyen NV (Netherlands)(1)(2)		5,176		12,026,580		3.7	%
Tata Consultancy Services Ltd. (India)(2)		367,734		14,439,124		4.5	%
				26,465,704		8.2	%

The accompanying notes are an integral part of these financial statements.

Page 43

Chautauqua International Growth Fund

Schedule of Investments, December 31, 2020

Common Stocks (cont.)

					% of
	Shares		Value		Net Assets
Life Sciences Tools & Services
Wuxi Biologics Cayman, Inc. (China)(1)(2)		1,344,148	$	17,825,209		5.5	%
Multi-Line Insurance
Fairfax Financial Holdings Ltd. (Canada)		30,873		10,522,626		3.3	%
Pharmaceuticals
Novo Nordisk A/S – ADR (Denmark)		201,403		14,068,000		4.4	%
Regional Banks
HDFC Bank Ltd. – ADR (India)(1)		183,764		13,278,787		4.1	%
Renewable Electricity
Brookfield Renewable Corp. (Canada)		159,367		9,286,315		2.9	%
Semiconductor Equipment
ASML Holding NV (Netherlands)		32,346		15,775,790		4.9	%
Semiconductors
AMS AG (Austria)(1)(2)		163,044		3,552,636		1.1	%
Taiwan Semiconductor
Manufacturing Co. Ltd. – ADR (Taiwan)		113,626		12,389,779		3.8	%
				15,942,415		4.9	%
Semiconductors & Semiconductor Equipment
SolarEdge Technologies, Inc. (Israel)(1)		18,412		5,875,637		1.8	%
Total Common Stocks
(Cost $200,853,630)				307,929,012		95.5	%
Short-Term Investment
Money Market Mutual Fund
First American Government
Obligations Fund, Class U, 0.04%(3)		13,662,627		13,662,627		4.2	%
Total Short-Term Investment
(Cost $13,662,627)				13,662,627		4.2	%
Total Investments
(Cost $214,516,257)				321,591,639		99.7	%
Other Assets in Excess of Liabilities				879,469		0.3	%
TOTAL NET ASSETS			$	322,471,108		100.0	%

Notes to Schedule of Investments

(1)	Non-Income Producing.
(2)	Level 2 security – See Note 2a to the financial statements.
(3)	Seven-Day Yield.

ADR – American Depository Receipt

Industry classifications shown in the Schedule of Investments are based off of the Global Industry Classification Standard (GICS^®).  GICS^® was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”).  GICS^® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

The accompanying notes are an integral part of these financial statements.

Page 44

Chautauqua International Growth Fund

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Equity
Common Stocks	$	147,432,495	$	160,496,517	$	—	$	307,929,012
Total Equity		147,432,495		160,496,517		—		307,929,012
Short-Term Investment
Money Market Mutual Fund		13,662,627		—		—		13,662,627
Total Short-Term Investment		13,662,627		—		—		13,662,627
Total Investments*	$	161,095,122	$	160,496,517	$	—	$	321,591,639

* Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments.

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 45

Chautauqua Global Growth Fund

December 31, 2020 (Unaudited)

Portfolio Manager’s Commentary

In 2020, the Chautauqua Global Growth Fund Institutional Class returned 37.97%, significantly outperforming its benchmark, the MSCI ACWI Index^®, which returned 16.25%.

The Fund typically holds a limited number of companies (35 to 45) invested primarily in equity securities of both U.S. and non-U.S. companies with medium to large market capitalizations. Stock selection accounted for the majority of the outperformance of the Chautauqua Global Growth Fund, as compared to the MSCI ACWI Index^®. Portfolio allocation was also a meaningful contributor to the outperformance, led by an overweight in the information technology sector and an underweight in the energy sector, which we exited in the first quarter. Investments in the information technology, health care, and consumer discretionary sectors drove the majority of the outperformance, and standouts such as Adyen, SolarEdge, Genmab, WuXi Biologics, TAL Education, and BYD were among the top contributors in the entire portfolio.  While all regions positively contributed to the Fund overall, relative underweight exposure to the United States detracted from the allocation effect in North America.

Heading into 2020, economic fundamentals were already weak and stock market performance had been overly reliant on monetary accommodation. We were cautious. In the fourth quarter of 2019, we had realigned the Fund towards portfolio companies we viewed as having more economically resilient business models and lower valuation multiples. At the time, this was an extra measure of care to insulate the Fund should the fragile global economy topple over.

Our cautious portfolio positioning at the start of the year proved to be prescient. The coronavirus (COVID-19) pandemic spread around the world in the first quarter. Financial assets were battered, and stock markets suffered a bear market decline. We were able to provide some downside protection in this environment because of the portfolio changes we made in the fourth quarter of 2019.

Central banks and governments around the world responded to the crisis with large waves of fiscal and monetary stimulus, amounting to many trillions of dollars worldwide. This served to prop up afflicted consumers and businesses, stabilize financial markets, and guarantee liquidity almost anywhere it was needed. We took advantage of market dislocations amidst the selloff to initiate positions in several companies that we had analyzed and were monitoring on our watchlist. We initiated positions in Adyen, EPAM Systems, SolarEdge, Prosus, Beigene, and WuXi Biologics. These investments proved to be among the most beneficial contributors to the Fund’s performance in 2020.

Markets rallied vigorously in the second quarter. The dramatic rise in stock prices was accompanied by extraordinary monetary accommodation, quantitative easing, and repeated signaling by central banks of a do-anything willingness to bolster economies. Not only did this amount to a lower discount rate, which inflates the value of financial assets, but it also provided a psychological backstop for investors. We were able to again outperform in the second quarter as result of the significant repositioning amidst the selloff in the first quarter.

Markets grinded higher again in the third quarter, and our outperformance continued. However, we grew concerned with the disconnect between stock prices and fundamentals. The economic recovery was stagnant or uneven, meanwhile we believed valuation multiples climbed to excessive levels relative to earnings, which had collapsed. We made changes in the Fund’s portfolio to reflect this caution, by taking profits from some high valuation “winners”, redeploying to lower valuation holdings, and initiating new positions in Alteryx, Brookfield Renewable, and Fairfax Financial.

In the fourth quarter, positive developments of a COVID-19 vaccine improved market sentiment even further, forming the basis for a sustainable reopening scenario and sending stocks even higher. More so, this helped unleash a powerful “pro-cyclical” rotation, and value stocks substantially outperformed growth stocks. We were able to again outperform in this market environment, aided by the prior changes in the portfolio. Because the market continued to rally, we made additional changes to the portfolio to reflect our caution. We reduced positions in Adyen, Atlassian, BYD, and SolarEdge. Proceeds were used to initiate a new position in Alexandria Real Estate and increase positions in Bank Rakyat, Brookfield Renewable, DBS, Sinopharm, Tata Consultancy, and WuXi Biologics.

Page 46

Chautauqua Global Growth Fund

December 31, 2020 (Unaudited)

Outlook

Due to the vaccine developments, the most likely economic scenario is one that improves in the next year. And we believe, we have averted a disaster scenario in which the pandemic continues to grow unchecked. As the vaccine is administered to larger swaths of the population, herd immunity is expected to increase, and the spread of the disease should decline. Vaccine manufacturers have announced expected availability in the billions of doses. The most uncertain aspects pertain to how much reach in the next year medical professionals will actually have administering the vaccines, and when emerging countries can obtain their share.

Central banks have become much more optimistic about the prospects for a rebound, albeit shallower and choppier than originally anticipated, in the next year. Many macroeconomic indicators have stabilized and are no longer deteriorating, with the exception of services and consumption data that are more sensitive to weakness in domestic economies. However, the recent resurgence of COVID-19 cases is expected to have follow-through effects on near-term economic growth. And while downside risks have been reduced in recent months, the most likely risks to economic recovery pertain to renewed containment measures. The availability of the vaccine is positive for the economic outlook and is further assisted by ongoing supportive measures by central banks and governments.

Monetary policy will continue to be an important component of the market narrative, but a depleted arsenal and general fatigue also play into worries that monetary policy is increasingly pushing on a string. Therefore, fiscal policy will play an even more critical role for supporting economies in these difficult times. Fortunately, recent important fiscal stimulus packages were passed and made it through political gridlock.

The rotation from growth outperformance to value outperformance was not terribly surprising. The interesting question is whether the rotation might be sustainable, especially as recent instances of growth to value rotations have tended to fizzle. The case that value stocks have more room to grow in price revolves around expectations for more positive vaccine developments and a rebound in corporate earnings. Furthermore, cyclical sectors should be a beneficiary of the economic reopening. Valuation differences between growth stocks and value stocks are still near their widest point over the last ten years. And overall, we believe market valuations have become expensive relative to current earnings power, and they are likely to stay elevated next year as central banks continue to ease into the recovery.

While valuations are high across the market, on a relative basis, they are still most attractive for international stocks. The pandemic has delivered a global growth shock, but in doing so, it has accelerated the timeline for several mega trends that the Fund has been actively investing in, such as productivity enhancement (robotics, automation, and software), e-commerce, electronic payments, and rapid drug development. Furthermore, many portfolio companies have been able to continue to deliver growth even in this recessionary environment, which is an exceptionally rare trait.

We have made adjustments to the Fund portfolio, including realizing profits from some high valuation “winners”, redeploying to lower valuation holdings, and raising cash levels so we hold some dry powder. On the margin, these changes should help mitigate some downside if markets become less hospitable, and we continue to contemplate further adjustments for a more conservative balance of growth, profitability, and valuation in the portfolio.

Respectfully Submitted,

Portfolio Managers:

Brian Beitner, CFA

Jesse A. Flores, CFA

Haicheng Li, CFA

Nathaniel R. Velarde

Page 47

Chautauqua Global Growth Fund

December 31, 2020 (Unaudited)

Portfolio Characteristics

A December 31, 2020 summary of the Fund’s top 10 holdings and equity sector analysis compared to the MSCI ACWI Index is shown below.

Top 10 Holdings(1)
SVB Financial Group	4.6%	Net Assets:	$139,018,950
Genmab A/S	4.4%	Portfolio Turnover Rate:	24%
TJX Cos, Inc.	3.9%	Number of Equity Holdings:	46
Wuxi Biologics Cayman, Inc.	3.8%
MasterCard, Inc. – Class A	3.3%	Annualized Portfolio Expense Ratio(3):
Tata Consultancy Services Ltd.	3.3%	Gross
HDFC Bank Ltd. – ADR	3.1%	Institutional Class:	1.23%
TAL Education Group – ADR	3.0%	Investor Class:	1.48%	(4)
Bank Rakyat Indonesia Persero Tbk PT	2.9%
Charles Schwab Corp.	2.9%	Net
		Institutional Class:	0.80%
		Investor Class:	1.05%	(4)
Equity Sector Analysis(2)		Country Allocation(2)

(1)	The Fund’s portfolio composition is subject to change and there is no assurance that the Fund will continue to hold any particular security.  Percentages shown relate to the Fund’s total net assets as of December 31, 2020.
(2)	Percentages shown in parentheses relate to the Fund’s total value of investments as of December 31, 2020, and may not add up to 100% due to rounding.
(3)	Reflects expense ratios as stated in the Fund’s current prospectus.  The Advisor has contractually agreed to limit the Fund’s total annual fund operating expenses to 0.80% of average daily net assets for the Institutional Class shares and 1.05% of average daily net assets for the Investor Class shares, at least through April 30, 2022.
(4)	Includes 0.25% 12b-1 fee.

Page 48

Chautauqua Global Growth Fund

December 31, 2020 (Unaudited)

Institutional Class

Value of a $25,000 Investment

Growth of a hypothetical investment of $25,000 made on the Fund’s inception date (04/15/16), assuming reinvestment of all distributions.

Investor Class

Value of a $10,000 Investment

Growth of a hypothetical investment of $10,000 made on the Fund’s inception date (04/15/16), assuming reinvestment of all distributions.

Page 49

Chautauqua Global Growth Fund

December 31, 2020 (Unaudited)

Total Returns

		Average Annual
			Since
For the Periods Ended December 31, 2020	One Year	Three Years	Inception(1)
Institutional Class Shares	37.97%	15.27%	17.39%
Investor Class Shares	37.94%	15.07%	17.15%
MSCI ACWI Index(2)	16.25%	10.06%	12.65%

(1)	For the period from April 15, 2016 (inception date) through December 31, 2020.
(2)	The MSCI ACWI Index is a market-capitalization-weighted index maintained by MSCI, Inc. and designed to provide a broad measure of stock performance throughout the world. The MSCI ACWI Index includes both developed and emerging markets.  This index does not reflect any deduction for fees, expenses or taxes. A direct investment in the index is not possible.

The line graphs on the previous page and the returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions in additional shares. The returns in the graphs and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for each period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period.

The gross expense ratio for each Class, as reflected in the Fund’s current prospectus, is set forth under “Portfolio Characteristics”.

The Fund focuses on both U.S. and non-U.S. stocks with medium to large market capitalizations and therefore the performance of the Fund may be more volatile than the performance of funds that focus on types of stocks that have a broader investment style.  Under normal market conditions, the Fund will invest at least 40% of its total assets in non-U.S. companies. Foreign investments involve additional risks such as currency rate fluctuations and the potential for political and economic instability, and different and sometimes less strict financial reporting standards and regulation.  U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by the U.S. and other countries. In addition, the United Kingdom withdrew from the European Union on January 31, 2020 following a June 2016 referendum referred to as “Brexit.”  Although the EU and UK agreed to a trade deal in December 2020, there is significant market uncertainty regarding Brexit’s ramifications, and the range of possible political, regulatory, economic, and market outcomes are difficult to predict. These and other geopolitical events may cause market disruptions and could have an adverse effect on the value of the Fund’s investments.

Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

For information about the performance of the Fund as of the most recent month-end, please call 1-866-44BAIRD or visit www.bairdfunds.com. Mutual fund performance changes over time and current performance may be lower or higher than that stated.

Page 50

Chautauqua Global Growth Fund

Schedule of Investments, December 31, 2020

Common Stocks

					% of
	Shares		Value		Net Assets
Apparel Retail
TJX Cos, Inc. (United States)		78,844	$	5,384,256		3.9	%
Application Software
Atlassian Corp. PLC (Australia)(1)		9,271		2,168,209		1.6	%
Temenos Group AG (Switzerland)(2)		20,935		2,916,865		2.1	%
				5,085,074		3.7	%
Asset Management & Custody Banks
Julius Baer Group Ltd. (Switzerland)(2)		21,550		1,241,528		0.9	%
Automobile Manufacturers
BYD Co. Ltd. (China)(2)		76,170		2,005,423		1.4	%
Biotechnology
BeiGene Ltd. – ADR (China)(1)		8,663		2,238,433		1.6	%
Genmab A/S (Denmark)(1)(2)		15,233		6,176,888		4.4	%
Incyte Corp. (United States)(1)		44,780		3,894,964		2.8	%
Regeneron Pharmaceuticals, Inc. (United States)(1)		4,852		2,344,050		1.7	%
				14,654,335		10.5	%
Data Processing & Outsourced Services
MasterCard, Inc. – Class A (United States)		13,020		4,647,359		3.3	%
Diversified Banks
Bank Rakyat Indonesia Persero Tbk PT (Indonesia)(2)		13,791,440		4,100,243		2.9	%
DBS Group Holdings Ltd. (Singapore)(2)		171,659		3,253,064		2.3	%
				7,353,307		5.2	%
Diversified Support Services
Recruit Holdings Co. Ltd. (Japan)(2)		31,512		1,323,597	��	1.0	%
Education Services
TAL Education Group – ADR (China)(1)		58,449		4,179,688		3.0	%
Electronic Equipment & Instruments
Coherent, Inc. (United States)(1)		5,770		865,615		0.6	%
Keyence Corp. (Japan)(2)		4,685		2,635,392		1.9	%
Universal Display Corp. (United States)		10,547		2,423,701		1.7	%
				5,924,708		4.2	%
Environmental & Facilities Services
Waste Connections, Inc. (Canada)		31,155		3,195,568		2.3	%
Equity Real Estate Investment Trusts (REITs)
Alexandria Real Estate Equities, Inc. (United States)		9,044		1,611,822		1.2	%
Healthcare Distributors
Sinopharm Group Co. Ltd. (China)(2)		1,047,957		2,542,161		1.8	%

The accompanying notes are an integral part of these financial statements.

Page 51

Chautauqua Global Growth Fund

Schedule of Investments, December 31, 2020

Common Stocks (cont.)

					% of
	Shares		Value		Net Assets
Industrial Machinery
FANUC Corp. (Japan)(2)		11,111	$	2,742,741		2.0	%
Information Technology
Constellation Software, Inc. (Canada)		2,866		3,721,635		2.7	%
Topicus.com, Inc. (Canada)(1)(2)		5,330		18,780		0.0	%
				3,740,415		2.7	%
Interactive Media & Services
Alphabet, Inc. – Class A (United States)(1)		1,470		2,576,381		1.9	%
Internet & Direct Marketing Retail
Prosus NV (Netherlands)(2)		36,755		3,968,733		2.9	%
Internet Retail
Alibaba Group Holding Ltd. – ADR (China)(1)		11,671		2,716,192		2.0	%
Amazon.com, Inc. (United States)(1)		691		2,250,539		1.6	%
				4,966,731		3.6	%
IT Services
Adyen NV (Netherlands)(1)(2)		1,445		3,357,498		2.4	%
EPAM Systems, Inc. (United States)(1)		4,204		1,506,503		1.1	%
Tata Consultancy Services Ltd. (India)(2)		115,110		4,519,808		3.3	%
				9,383,809		6.8	%
Life Sciences Tools & Services
Illumina, Inc. (United States)(1)		5,419		2,005,030		1.4	%
Wuxi Biologics Cayman, Inc. (China)(1)(2)		394,209		5,227,741		3.8	%
				7,232,771		5.2	%
Multi-Line Insurance
Fairfax Financial Holdings Ltd. (Canada)		8,115		2,765,883		2.0	%
Other Diversified Financial Services
Charles Schwab Corp. (United States)		77,112		4,090,020		2.9	%
Pharmaceuticals
Bristol-Myers Squibb Company (United States)		15,270		947,198		0.7	%
Novo Nordisk A/S – ADR (Denmark)		57,676		4,028,669		2.9	%
				4,975,867		3.6	%
Regional Banks
HDFC Bank Ltd. – ADR (India)(1)		60,085		4,341,742		3.1	%
SVB Financial Group (United States)(1)		16,405		6,362,352		4.6	%
				10,704,094		7.7	%
Renewable Electricity
Brookfield Renewable Corp. (Canada)		68,543		3,993,971		2.9	%

The accompanying notes are an integral part of these financial statements.

Page 52

Chautauqua Global Growth Fund

Schedule of Investments, December 31, 2020

Common Stocks (cont.)

					% of
	Shares		Value		Net Assets
Semiconductor Equipment
ASML Holding NV (Netherlands)		5,744	$	2,801,464		2.0	%
Semiconductors
AMS AG (Austria)(1)(2)		47,955		1,044,912		0.8	%
Nvidia Corp. (United States)		2,992		1,562,422		1.1	%
Taiwan Semiconductor
Manufacturing Co. Ltd. – ADR (Taiwan)		33,529		3,656,002		2.6	%
				6,263,336		4.5	%
Semiconductors & Semiconductor Equipment
SolarEdge Technologies, Inc. (Israel)(1)		5,866		1,871,958		1.3	%
Software
Alteryx, Inc. (United States)(1)		8,991		1,095,014		0.8	%
Total Common Stocks
(Cost $90,815,667)				132,322,014		95.2	%
Short-Term Investment
Money Market Mutual Fund
First American Government
Obligations Fund, Class U, 0.04%(3)		5,109,380		5,109,380		3.7	%
Total Short-Term Investment
(Cost $5,109,380)				5,109,380		3.7	%
Total Investments
(Cost $95,925,047)				137,431,394		98.9	%
Other Assets in Excess of Liabilities				1,587,556		1.1	%
TOTAL NET ASSETS			$	139,018,950		100.0	%

Notes to Schedule of Investments

(1)	Non-Income Producing.
(2)	Level 2 security – See Note 2a to the financial statements.
(3)	Seven-Day Yield.

ADR – American Depository Receipt

Industry classifications shown in the Schedule of Investments are based off of the Global Industry Classification Standard (GICS^®).  GICS^® was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”).  GICS^® is a service mark of MSCI and S&P and has been licensed for use by U.S. Bancorp Fund Services, LLC.

The accompanying notes are an integral part of these financial statements.

Page 53

Chautauqua Global Growth Fund

Summary of Fair Value Exposure at December 31, 2020

The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion on changes in valuation techniques and related inputs during the period. These standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy is organized into three levels based upon the assumptions (referred to as “inputs”) used in pricing the asset or liability. These standards state that “observable inputs” reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from independent sources and “unobservable inputs” reflect an entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. These inputs are summarized into three broad levels and described below:

Level 1 –	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2 –	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 –	Unobservable inputs for the asset or liability.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Equity
Common Stocks	$	85,246,640	$	47,075,374	$	—	$	132,322,014
Total Equity		85,246,640		47,075,374		—		132,322,014
Short-Term Investment
Money Market Mutual Fund		5,109,380		—		—		5,109,380
Total Short-Term Investment		5,109,380		—		—		5,109,380
Total Investments*	$	90,356,020	$	47,075,374	$	—	$	137,431,394

* Additional information regarding the industry classifications of these investments is disclosed in the Schedule of Investments.

Changes in valuation techniques may result in transfers into or out of assigned levels within the fair value hierarchy. There were no transfers into or out of Level 3 during the reporting period, as compared to the security classifications from the prior year’s annual report. See the Fund’s Valuation Policy in Note 2a to the financial statements.

The accompanying notes are an integral part of these financial statements.

Page 54

Additional Information on Fund Expenses

December 31, 2020 (Unaudited)

Example

As a shareholder of a mutual fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; and exchange fees; and (2) ongoing costs, such as management fees; distribution and/or service (12b-1) fees; and other fund expenses. With the exception of the Chautauqua International Growth and Chautauqua Global Growth Funds, which charge redemption fees, the Funds do not charge any sales loads, redemption fees or other transaction fees; however, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services, the Funds’ transfer agent. If you request that a redemption be made by wire transfer, currently the Funds’ transfer agent charges a $15.00 fee.

This Example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (7/1/20 – 12/31/20).

Actual Expenses

The third and fourth columns of the following table provide information about account values based on actual returns and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the fourth column entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The fifth and sixth columns of the following table provide information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the sixth column of the table (entitled “Expenses Paid During Period”) is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different mutual funds. In addition, if these transactional costs were included, your costs could have been higher.

Page 55

Additional Information on Fund Expenses

December 31, 2020 (Unaudited)

Actual vs. Hypothetical Returns

For the Six Months Ended December 31, 2020

					Hypothetical
					(5% return
			Actual		before expenses)
	Fund’s	Beginning	Ending	Expenses	Ending	Expenses
	Annualized	Account	Account	Paid	Account	Paid
	Expense	Value	Value	During	Value	During
	Ratio(1)	7/1/20	12/31/20	Period(1)	12/31/20	Period(1)
Baird MidCap Fund
Institutional Class	0.82%	$1,000.00	$1,290.60	$4.72	$1,021.01	$4.17
Investor Class	1.07%	$1,000.00	$1,288.20	$6.15	$1,019.76	$5.43
Baird Small/Mid Cap
Growth Fund
Institutional Class	0.85%	$1,000.00	$1,329.60	$4.98	$1,020.86	$4.32
Investor Class	1.10%	$1,000.00	$1,325.10	$6.43	$1,019.61	$5.58
Baird Small/Mid Cap
Value Fund
Institutional Class	0.85%	$1,000.00	$1,231.80	$4.77	$1,020.86	$4.32
Investor Class	1.10%	$1,000.00	$1,228.80	$6.16	$1,019.61	$5.58
Baird SmallCap
Value Fund
Institutional Class	0.95%	$1,000.00	$1,253.80	$5.38	$1,020.36	$4.82
Investor Class	1.20%	$1,000.00	$1,251.70	$6.79	$1,019.10	$6.09
Chautauqua International
Growth Fund
Institutional Class	0.80%	$1,000.00	$1,335.90	$4.70	$1,021.11	$4.06
Investor Class	1.05%	$1,000.00	$1,333.40	$6.16	$1,019.86	$5.33
Chautauqua Global
Growth Fund
Institutional Class	0.80%	$1,000.00	$1,297.30	$4.62	$1,021.11	$4.06
Investor Class	1.05%	$1,000.00	$1,294.70	$6.06	$1,019.86	$5.33

(1) Expenses are equal to the Fund’s annualized net expense ratio multiplied by the average account value over the period, 184 days and divided by 366 to reflect the one-half year period.

Page 56

Statements of Assets and Liabilities

December 31, 2020

			Baird
	Baird		Small/Mid
	MidCap		Cap Growth
	Fund		Fund
ASSETS:
Investments, at value (cost $1,260,670,865
and $38,841,556, respectively)	$	2,271,960,614	$	52,940,677
Dividends receivable		184,363		6,313
Interest receivable		1,575		74
Receivable for Fund shares sold		2,497,815		223,087
Prepaid expenses and other assets		28,497		13,199
Total assets		2,274,672,864		53,183,350
LIABILITIES:
Payable for securities purchased		3,653,445		1,319,828
Payable for Fund shares redeemed		3,548,382		1,952
Payable to Advisor, net (Note 5)		1,398,348		18,962
Payable to Directors		13,310		13,310
Accrued fund accounting and administration fees		29,186		5,117
Accrued shareholder servicing fees		106,868		2,766
Accrued professional fees		1,929		1,929
Accrued custody fees		4,171		2,445
Accrued Rule 12b-1 fees (Note 7)		72,912		171
Accrued expenses and other liabilities		18,635		2,199
Total liabilities		8,847,186		1,368,679
NET ASSETS	$	2,265,825,678	$	51,814,671
NET ASSETS CONSIST OF:
Paid-in capital	$	1,208,438,450	$	36,704,869
Total distributable earnings		1,057,387,228		15,109,802
NET ASSETS	$	2,265,825,678	$	51,814,671
INSTITUTIONAL CLASS SHARES
Net Assets	$	2,065,521,329	$	51,153,659
Shares outstanding ($0.01 par value,
unlimited shares authorized)		73,335,285		2,941,923
Net asset value, offering and redemption price per share	$	28.17	$	17.39
INVESTOR CLASS SHARES
Net Assets	$	200,304,349	$	661,012
Shares outstanding ($0.01 par value,
unlimited shares authorized)		7,638,735		38,317
Net asset value, offering and redemption price per share	$	26.22	$	17.25

The accompanying notes are an integral part of these financial statements.

Page 57

Statements of Assets and Liabilities

December 31, 2020

	Baird
	Small/Mid		Baird
	Cap Value		SmallCap
	Fund		Value Fund
ASSETS:
Investments, at value (cost $18,903,829
and $21,754,791, respectively)	$	23,415,471	$	30,654,862
Dividends receivable		18,146		42,285
Interest receivable		14		13
Receivable for Fund shares sold		35,457		39,800
Receivable from Advisor, net (Note 5)		400		—
Prepaid expenses and other assets		18,312		21,754
Total assets		23,487,800		30,758,714
LIABILITIES:
Payable for securities purchased		353,703		—
Payable to Advisor, net (Note 5)		—		4,429
Payable to Directors		13,310		13,310
Accrued fund accounting and administration fees		5,533		6,141
Accrued shareholder servicing fees		3,047		7,485
Accrued professional fees		1,929		1,928
Accrued custody fees		216		58
Accrued Rule 12b-1 fees (Note 7)		32		515
Accrued expenses and other liabilities		764		793
Total liabilities		378,534		34,659
NET ASSETS	$	23,109,266	$	30,724,055
NET ASSETS CONSIST OF:
Paid-in capital	$	19,893,873	$	23,950,109
Total distributable earnings		3,215,393		6,773,946
NET ASSETS	$	23,109,266	$	30,724,055
INSTITUTIONAL CLASS SHARES
Net Assets	$	23,030,200	$	30,428,369
Shares outstanding ($0.01 par value,
unlimited shares authorized)		1,873,425		1,955,517
Net asset value, offering and redemption price per share	$	12.29	$	15.56
INVESTOR CLASS SHARES
Net Assets	$	79,066	$	295,686
Shares outstanding ($0.01 par value,
unlimited shares authorized)		6,440		19,047
Net asset value, offering and redemption price per share	$	12.28	$	15.52

The accompanying notes are an integral part of these financial statements.

Page 58

Statements of Assets and Liabilities

December 31, 2020

	Chautauqua		Chautauqua
	International		Global
	Growth Fund		Growth Fund
ASSETS:
Investments, at value (cost $214,516,257
and $95,925,047, respectively)	$	321,591,639	$	137,431,394
Foreign currency, at value (cost $780,597
and $137,515, respectively)		781,385		139,014
Dividends receivable		168,147		56,285
Interest receivable		594		239
Receivable for Fund shares sold		592,790		1,622,655
Uninvested cash		38,074		15,758
Prepaid expenses and other assets		22,542		19,853
Total assets		323,195,171		139,285,198
LIABILITIES:
Payable for Fund shares redeemed		4,592		5,075
Payable to Advisor, net (Note 5)		175,313		64,910
Payable to directors		13,310		13,310
Accrued fund accounting and administration fees		9,138		7,794
Accrued shareholder servicing fees		11,215		6,573
Accrued professional fees		1,290		1,290
Accrued custody fees		8,746		3,951
Accrued Rule 12b-1 fees (Note 7)		204		451
Deferred tax		490,722		158,120
Accrued expenses and other liabilities		9,533		4,774
Total liabilities		724,063		266,248
NET ASSETS	$	322,471,108	$	139,018,950
NET ASSETS CONSIST OF:
Paid-in capital	$	221,346,226	$	99,256,074
Total distributable earnings		101,124,882		39,762,876
NET ASSETS	$	322,471,108	$	139,018,950
INSTITUTIONAL CLASS SHARES
Net Assets	$	321,773,703	$	137,342,222
Shares outstanding ($0.01 par value,
unlimited shares authorized)		18,381,431		6,920,329
Net asset value, offering and redemption price per share	$	17.51	$	19.85
INVESTOR CLASS SHARES
Net Assets	$	697,405	$	1,676,728
Shares outstanding ($0.01 par value,
unlimited shares authorized)		39,895		84,961
Net asset value, offering and redemption price per share	$	17.48	$	19.74

The accompanying notes are an integral part of these financial statements.

Page 59

Statements of Operations

Year Ended December 31, 2020

				Baird
	Baird			Small/Mid
	MidCap			Cap Growth
	Fund			Fund
INVESTMENT INCOME:
Dividends	$	8,831,101		$	129,639
Interest		215,483			3,935
Total investment income		9,046,584			133,574
EXPENSES:
Investment advisory fees (Note 5)		14,508,524			225,664
Shareholder servicing fees		803,153			17,885
Fund accounting and administration fees		168,328			32,150
Federal and state registration fees		71,764			56,113
Directors fees		59,571			59,571
Reports to shareholders		69,090			1,472
Professional fees		27,930			28,625
Custody fees		26,812			8,361
Interest expense (Note 6)		30,545			2
Miscellaneous expenses		2,049			195
Rule 12b-1 fees – Investor Class Shares (Note 7)		406,855			750
Total expenses		16,174,621			430,788
Fee waiver by Advisor (Note 5)		—			(174,285	)
Net expenses		16,174,621			256,503
NET INVESTMENT LOSS		(7,128,037	)		(122,929	)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments		291,556,478			2,179,765
Net change in unrealized appreciation on investments		318,460,636			11,277,721
Net realized and unrealized gain on investments		610,017,114			13,457,486
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS	$	602,889,077		$	13,334,557

The accompanying notes are an integral part of these financial statements.

Page 60

Statements of Operations

Year Ended December 31, 2020

	Baird
	Small/Mid			Baird
	Cap Value			SmallCap
	Fund			Value Fund
INVESTMENT INCOME:
Dividends (net of issuance fees and/or foreign taxes
withheld of $2,518 and $5,647, respectively)	$	340,801		$	298,411
Interest		4,522			6,006
Other income		701			1,347
Total investment income		346,024			305,764
EXPENSES:
Investment advisory fees (Note 5)		158,831			224,344
Directors fees		59,571			59,571
Federal and state registration fees		47,291			53,254
Fund accounting and administration fees		34,567			35,393
Professional fees		27,946			28,103
Shareholder servicing fees		18,634			28,417
Reports to shareholders		1,541			1,618
Custody fees		1,256			1,423
Miscellaneous expenses		411			883
Rule 12b-1 fees – Investor Class Shares (Note 7)		828			1,323
Total expenses		350,876			434,329
Fee waiver by Advisor (Note 5)		(170,040	)		(182,269	)
Net expenses		180,836			252,060
NET INVESTMENT INCOME		165,188			53,704
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized loss on investments		(860,611	)		(2,166,119	)
Net change in unrealized appreciation on investments		878,323			2,348,969
Net realized and unrealized gain on investments		17,712			182,850
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS	$	182,900		$	236,554

The accompanying notes are an integral part of these financial statements.

Page 61

Statements of Operations

Year Ended December 31, 2020

	Chautauqua			Chautauqua
	International			Global
	Growth Fund			Growth Fund
INVESTMENT INCOME:
Dividends (net of issuance fees and/or foreign taxes
withheld of $253,944 and $60,466, respectively)	$	1,850,132		$	531,460
Interest		46,571			14,934
Other income		4,362			1,018
Total investment income		1,901,065			547,412
EXPENSES:
Investment advisory fees (Note 5)		1,631,915			647,641
Federal and state registration fees		60,973			55,522
Directors fees		59,571			59,571
Fund accounting and administration fees		54,329			45,985
Shareholder servicing fees		60,680			32,327
Custody fees		46,984			24,801
Professional fees		31,273			31,153
Reports to shareholders		6,367			3,092
Miscellaneous expenses		2,513			655
Rule 12b-1 fees – Investor Class Shares (Note 7)		2,571			3,902
Total expenses		1,957,176			904,649
Fee waiver by Advisor (Note 5)		(213,896	)		(209,930	)
Net expenses		1,743,280			694,719
NET INVESTMENT INCOME (LOSS)		157,785			(147,307	)
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSLATION:
Net realized gain (loss) on investments
(net of foreign taxes withheld of $676 and $0, respectively)		3,840,351			(666,978	)
Net realized gain on foreign currency translation		1,689			28,534
Net change in unrealized appreciation on investments		81,505,309			34,020,688
Net change in unrealized appreciation
(depreciation) on foreign currency translation		5,661			(3,704	)
Net realized and unrealized gain on investments		85,353,010			33,378,540
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS	$	85,510,795		$	33,231,233

The accompanying notes are an integral part of these financial statements.

Page 62

Statements of Changes in Net Assets

Baird MidCap Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment loss	$	(7,128,037	)	$	(1,758,440	)
Net realized gain on investments		291,556,478			113,591,259
Net change in unrealized appreciation on investments		318,460,636			445,197,148
Net increase in net assets resulting from operations		602,889,077			557,029,967
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		462,769,490			658,933,497
Shares issued to holders in reinvestment of distributions		163,266,379			92,604,419
Cost of shares redeemed		(736,918,649	)		(650,544,300	)
Net increase (decrease) in net assets resulting
from capital share transactions		(110,882,780	)		100,993,616
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(181,775,657	)		(109,134,740	)
Investor Class		(18,567,375	)		(7,559,012	)
Total net distributions to shareholders		(200,343,032	)		(116,693,752	)
TOTAL INCREASE IN NET ASSETS		291,663,265			541,329,831
NET ASSETS:
Beginning of year		1,974,162,413			1,432,832,582
End of year	$	2,265,825,678		$	1,974,162,413

The accompanying notes are an integral part of these financial statements.

Page 63

Statements of Changes in Net Assets

Baird Small/Mid Cap Growth Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment loss	$	(122,929	)	$	(32,973	)
Net realized gain (loss) on investments		2,179,765			(32,734	)
Net change in unrealized appreciation on investments		11,277,721			3,511,422
Net increase in net assets resulting from operations		13,334,557			3,445,715
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		24,212,271			9,941,887
Shares issued to holders in reinvestment of distributions		916,495			—
Cost of shares redeemed		(4,275,076	)		(2,104,855	)
Net increase in net assets resulting
from capital share transactions		20,853,690			7,837,032
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(934,480	)		—
Investor Class		(11,948	)		—
Total net distributions to shareholders		(946,428	)		—
TOTAL INCREASE IN NET ASSETS		33,241,819			11,282,747
NET ASSETS:
Beginning of year		18,572,852			7,290,105
End of year	$	51,814,671		$	18,572,852

The accompanying notes are an integral part of these financial statements.

Page 64

Statements of Changes in Net Assets

Baird Small/Mid Cap Value Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	165,188		$	228,828
Net realized gain (loss) on investments		(860,611	)		346,989
Net change in unrealized appreciation on investments		878,323			2,878,359
Net increase in net assets resulting from operations		182,900			3,454,176
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		7,507,607			6,171,911
Shares issued to holders in reinvestment of distributions		137,203			167,707
Cost of shares redeemed		(9,442,201	)		(2,097,080	)
Net increase (decrease) in net assets resulting
from capital share transactions		(1,797,391	)		4,242,538
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(163,070	)		(208,297	)
Investor Class		(50	)		(3,681	)
Total net distributions to shareholders		(163,120	)		(211,978	)
TOTAL INCREASE (DECREASE) IN NET ASSETS		(1,777,611	)		7,484,736
NET ASSETS:
Beginning of year		24,886,877			17,402,141
End of year	$	23,109,266		$	24,886,877

The accompanying notes are an integral part of these financial statements.

Page 65

Statements of Changes in Net Assets

Baird SmallCap Value Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	53,704		$	284,077
Net realized gain (loss) on investments		(2,166,119	)		2,315,161
Net change in unrealized appreciation on investments		2,348,969			2,792,139
Net increase in net assets resulting from operations		236,554			5,391,377
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		4,992,494			4,097,702
Shares issued to holders in reinvestment of distributions		1,383,444			184,267
Cost of shares redeemed		(8,125,553	)		(5,124,745	)
Net decrease in net assets resulting
from capital share transactions		(1,749,615	)		(842,776	)
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(1,581,926	)		(223,517	)
Investor Class		(14,822	)		(3,885	)
Total net distributions to shareholders		(1,596,748	)		(227,402	)
TOTAL INCREASE (DECREASE) IN NET ASSETS		(3,109,809	)		4,321,199
NET ASSETS:
Beginning of year		33,833,864			29,512,665
End of year	$	30,724,055		$	33,833,864

The accompanying notes are an integral part of these financial statements.

Page 66

Statements of Changes in Net Assets

Chautauqua International Growth Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income	$	157,785		$	3,654,520
Net realized gain (loss) on investments
and foreign currency translation		3,842,040			(6,741,312	)
Net change in unrealized appreciation
on investments and foreign currency translation		81,510,970			32,743,535
Net increase in net assets resulting from operations		85,510,795			29,656,743
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		91,388,589			77,073,338
Shares issued to holders in reinvestment of distributions		1,730,938			2,901,751
Cost of shares redeemed		(28,256,851	)		(19,364,200	)
Redemption fees		35,222			32,973
Net increase in net assets resulting
from capital share transactions		64,897,898			60,643,862
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(2,104,798	)		(3,632,612	)
Investor Class		(1,953	)		(26,317	)
Total net distributions to shareholders		(2,106,751	)		(3,658,929	)
TOTAL INCREASE IN NET ASSETS		148,301,942			86,641,676
NET ASSETS:
Beginning of year		174,169,166			87,527,490
End of year	$	322,471,108		$	174,169,166

The accompanying notes are an integral part of these financial statements.

Page 67

Statements of Changes in Net Assets

Chautauqua Global Growth Fund

	Year Ended			Year Ended
	December 31, 2020			December 31, 2019
OPERATIONS:
Net investment income (loss)	$	(147,307	)	$	792,759
Net realized loss on investments
and foreign currency translation		(638,444	)		(157,584	)
Net change in unrealized appreciation
on investments and foreign currency translation		34,016,984			11,322,762
Net increase in net assets resulting from operations		33,231,233			11,957,937
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		62,986,909			15,333,359
Shares issued to holders in reinvestment of distributions		554,641			688,936
Cost of shares redeemed		(14,586,110	)		(7,222,512	)
Redemption fees		33,841			3,722
Net increase in net assets resulting
from capital share transactions		48,989,281			8,803,505
DISTRIBUTIONS TO SHAREHOLDERS:
Net distributions to shareholders:
Institutional Class		(635,729	)		(847,342	)
Investor Class		(4,036	)		(21,289	)
Total net distributions to shareholders		(639,765	)		(868,631	)
TOTAL INCREASE IN NET ASSETS		81,580,749			19,892,811
NET ASSETS:
Beginning of year		57,438,201			37,545,390
End of year	$	139,018,950		$	57,438,201

The accompanying notes are an integral part of these financial statements.

Page 68

Financial Highlights

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.

The accompanying notes are an integral part of these financial statements.

Page 69

Financial Highlights

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.

The accompanying notes are an integral part of these financial statements.

Page 70

Financial Highlights

Baird Small/Mid Cap Growth Fund – Institutional Class

							Period Ended
	Year Ended December 31,						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	%		9	%(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.

The accompanying notes are an integral part of these financial statements.

Page 71

Financial Highlights

Baird Small/Mid Cap Growth Fund – Investor Class

							Period Ended
	Year Ended December 31,						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	%		9	%(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.

The accompanying notes are an integral part of these financial statements.

Page 72

Financial Highlights

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.

The accompanying notes are an integral part of these financial statements.

Page 73

Financial Highlights

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.

The accompanying notes are an integral part of these financial statements.

Page 74

Financial Highlights

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		2.85	%		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.

The accompanying notes are an integral part of these financial statements.

Page 75

Financial Highlights

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.

The accompanying notes are an integral part of these financial statements.

Page 76

Financial Highlights

Chautauqua International Growth Fund – Institutional Class

													Period Ended
	Year Ended December 31,												December 31,
	2020			2019			2018			2017			2016(1)
Per Share Data:
Net asset value, beginning of period	$	12.62		$	10.17		$	12.59		$	9.57		$	10.00
Income from investment operations:
Net investment income(2)		0.01			0.30			0.06			0.04			0.00	(3)
Net realized and unrealized
gains (losses) on investments
and foreign currency translation		5.00			2.42			(2.19	)		3.41			(0.43	)
Total from investment operations		5.01			2.72			(2.13	)		3.45			(0.43	)
Less distributions:
Distributions from net
investment income		(0.12	)		(0.27	)		(0.06	)		(0.02	)		—
Distributions from net realized gains		—			—			(0.23	)		(0.41	)		—
Total distributions		(0.12	)		(0.27	)		(0.29	)		(0.43	)		—
Paid in capital from redemption fees		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		—
Net asset value, end of period	$	17.51		$	12.62		$	10.17		$	12.59		$	9.57
Total return		39.84	%		26.72	%		(16.94	)%		36.11	%		(4.30	)%(4)
Supplemental data and ratios:
Net assets, end of period (millions)	$	321.8		$	172.7		$	85.4		$	74.2		$	14.8
Ratio of expenses to average net assets		0.80	%		0.80	%		0.94	%(5)		0.95	%		0.95	%(6)
Ratio of expenses to average
net assets (before waivers)		0.90	%		0.96	%		1.07	%		1.20	%		2.32	%(6)
Ratio of net investment income
to average net assets		0.07	%		2.56	%		0.51	%		0.30	%		0.06	%(6)
Ratio of net investment income (loss)
to average net assets (before waivers)		(0.03	)%		2.40	%		0.38	%		0.05	%		(1.31	)%(6)
Portfolio turnover rate(7)		31	%		31	%		42	%		71	%		73	%(4)

(1)	Inception was close of business on April 15, 2016.
(2)	Calculated using average shares outstanding during the period.
(3)	Amount is less than $0.005.
(4)	Not annualized.
(5)	Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 0.80%. Prior to December 1, 2018, the expense cap was 0.95%.
(6)	Annualized.
(7)	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.

The accompanying notes are an integral part of these financial statements.

Page 77

Financial Highlights

Chautauqua International Growth Fund – Investor Class

													Period Ended
	Year Ended December 31,												December 31,
	2020			2019			2018			2017			2016(1)
Per Share Data:
Net asset value, beginning of period	$	12.60		$	10.15		$	12.57		$	9.56		$	10.00
Income from investment operations:
Net investment income (loss)(2)		(0.02	)		0.27			0.03			0.01			(0.01	)
Net realized and unrealized
gains (losses) on investments
and foreign currency translation		4.95	(8)		2.41			(2.19	)		3.41			(0.44	)
Total from investment operations		4.93			2.68			(2.16	)		3.42			(0.45	)
Less distributions:
Distributions from net
investment income		(0.05	)		(0.23	)		(0.03	)		(0.00	)(3)		—
Distributions from net realized gains		—			—			(0.23	)		(0.41	)		—
Total distributions		(0.05	)		(0.23	)		(0.26	)		(0.41	)		—
Paid in capital from redemption fees		0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)		0.01
Net asset value, end of period	$	17.48		$	12.60		$	10.15		$	12.57		$	9.56
Total return		39.37	%		26.42	%		(17.21	)%		35.86	%		(4.40	)%(4)
Supplemental data and ratios:
Net assets, end of period (millions)	$	0.7		$	1.5		$	2.1		$	1.6		$	0.3
Ratio of expenses to average net assets		1.05	%		1.05	%		1.19	%(5)		1.20	%		1.20	%(6)
Ratio of expenses to average
net assets (before waivers)		1.15	%		1.21	%		1.32	%		1.45	%		2.58	%(6)
Ratio of net investment income (loss)
to average net assets		(0.18	)%		2.31	%		0.26	%		0.05	%		(0.19	)%(6)
Ratio of net investment income (loss)
to average net assets (before waivers)		(0.28	)%		2.15	%		0.13	%		(0.20	)%		(1.57	)%(6)
Portfolio turnover rate(7)		31	%		31	%		42	%		71	%		73	%(4)

(1)	Inception was close of business on April 15, 2016.
(2)	Calculated using average shares outstanding during the period.
(3)	Amount is less than $0.005.
(4)	Not annualized.
(5)	Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 1.05%. Prior to December 1, 2018, the expense cap was 1.20%.
(6)	Annualized.
(7)	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.
(8)	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.

The accompanying notes are an integral part of these financial statements.

Page 78

Financial Highlights

Chautauqua Global Growth Fund – Institutional Class

													Period Ended
	Year Ended December 31,												December 31,
	2020			2019			2018			2017			2016(1)
Per Share Data:
Net asset value, beginning of period	$	14.47		$	11.29		$	13.43		$	10.09		$	10.00
Income from investment operations:
Net investment income (loss)(2)		(0.03	)		0.22			0.00	(3)		(0.04	)		(0.01	)
Net realized and unrealized
gains (losses) on investments
and foreign currency translation		5.49			3.18			(1.98	)		3.85			0.10
Total from investment operations		5.46			3.40			(1.98	)		3.81			0.09
Less distributions:
Distributions from net
investment income		(0.09	)		(0.16	)		(0.00	)(3)		—			—
Distributions from net realized gains		—			(0.06	)		(0.16	)		(0.47	)		—
Total distributions		(0.09	)		(0.22	)		(0.16	)		(0.47	)		—
Paid in capital from redemption fees		0.01			0.00	(3)		0.00	(3)		0.00	(3)		—
Net asset value, end of period	$	19.85		$	14.47		$	11.29		$	13.43		$	10.09
Total return		37.97	%		30.14	%		(14.70	)%		37.75	%		0.90	%(4)
Supplemental data and ratios:
Net assets, end of period (millions)	$	137.3		$	55.8		$	36.8		$	23.2		$	7.6
Ratio of expenses to average net assets		0.80	%		0.80	%		0.94	%(5)		0.95	%		0.95	%(6)
Ratio of expenses to average
net assets (before waivers)		1.04	%		1.23	%		1.34	%		2.26	%		3.65	%(6)
Ratio of net investment income (loss)
to average net assets		(0.17	)%		1.64	%		0.01	%		(0.30	)%		(0.16	)%(6)
Ratio of net investment income (loss)
to average net assets (before waivers)		(0.41	)%		1.21	%		(0.39	)%		(1.61	)%		(2.86	)%(6)
Portfolio turnover rate(7)		24	%		26	%		38	%		61	%		69	%(4)

(1)	Inception was close of business on April 15, 2016.
(2)	Calculated using average shares outstanding during the period.
(3)	Amount is less than $0.005.
(4)	Not annualized.
(5)	Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 0.80%. Prior to December 1, 2018, the expense cap was 0.95%.
(6)	Annualized.
(7)	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.

The accompanying notes are an integral part of these financial statements.

Page 79

Financial Highlights

Chautauqua Global Growth Fund – Investor Class

													Period Ended
	Year Ended December 31,												December 31,
	2020			2019			2018			2017			2016(1)
Per Share Data:
Net asset value, beginning of period	$	14.36		$	11.22		$	13.37		$	10.08		$	10.00
Income from investment operations:
Net investment income (loss)(2)		(0.06	)		0.19			(0.03	)		(0.07	)		(0.03	)
Net realized and unrealized
gains (losses) on investments
and foreign currency translation		5.44			3.15			(1.96	)		3.83			0.11
Total from investment operations		5.38			3.34			(1.99	)		3.76			0.08
Less distributions:
Distributions from net
investment income		(0.05	)		(0.14	)		—			—			—
Distributions from net realized gains		—			(0.06	)		(0.16	)		(0.47	)		—
Total distributions		(0.05	)		(0.20	)		(0.16	)		(0.47	)		—
Paid in capital from redemption fees		0.05			0.00	(3)		0.00	(3)		0.00	(3)		0.00	(3)
Net asset value, end of period	$	19.74		$	14.36		$	11.22		$	13.37		$	10.08
Total return		37.94	%		29.73	%		(14.86	)%		37.29	%		0.80	%(4)
Supplemental data and ratios:
Net assets, end of period (millions)	$	1.7		$	1.6		$	0.7		$	0.7		$	0.2
Ratio of expenses to average net assets		1.05	%		1.05	%		1.19	%(5)		1.20	%		1.20	%(6)
Ratio of expenses to average
net assets (before waivers)		1.29	%		1.48	%		1.59	%		2.51	%		3.90	%(6)
Ratio of net investment income (loss)
to average net assets		(0.42	)%		1.39	%		(0.24	)%		(0.55	)%		(0.41	)%(6)
Ratio of net investment income (loss)
to average net assets (before waivers)		(0.66	)%		0.96	%		(0.64	)%		(1.86	)%		(3.11	)%(6)
Portfolio turnover rate(7)		24	%		26	%		38	%		61	%		69	%(4)

(1)	Inception was close of business on April 15, 2016.
(2)	Calculated using average shares outstanding during the period.
(3)	Amount is less than $0.005.
(4)	Not annualized.
(5)	Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the expense cap decreased to 1.05%. Prior to December 1, 2018, the expense cap was 1.20%.
(6)	Annualized.
(7)	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.

The accompanying notes are an integral part of these financial statements.

Page 80

Notes to the Financial Statements

December 31, 2020

1. Organization

Baird Funds, Inc. (the “Corporation”) was incorporated on June 9, 2000, as a Wisconsin corporation and is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”).  The accompanying financial statements include the Baird MidCap Fund, the Baird Small/Mid Cap Growth Fund, the Baird Small/Mid Cap Value Fund, the Baird SmallCap Value Fund, the Chautauqua International Growth Fund and the Chautauqua Global Growth Fund (each a “Fund” and collectively the “Funds”), six of the sixteen active funds in the series comprising the Corporation. Pursuant to the 1940 Act, the Funds are “diversified” series of the Corporation. The investment advisor to the Funds is Robert W. Baird & Co. Incorporated (“Baird” or the “Advisor”).  The Funds are investment companies and therefore follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies.

The following table presents the class-specific inception dates for each of the Funds:

	Inception Date
Fund	Institutional Class	Investor Class
Baird MidCap Fund	December 29, 2000	December 29, 2000
Baird Small/Mid Cap Growth Fund	October 31, 2018	October 31, 2018
Baird Small/Mid Cap Value Fund	November 30, 2015	November 30, 2015
Baird SmallCap Value Fund	May 1, 2012	May 1, 2012
Chautauqua International Growth Fund	April 15, 2016	April 15, 2016
Chautauqua Global Growth Fund	April 15, 2016	April 15, 2016

Institutional Class shares are not subject to a distribution and service (12b-1) fee, while Investor Class shares are subject to a distribution and service (12b-1) fee up to 0.25%.  See Note 7.

The Baird MidCap Fund seeks long-term growth of capital through investments in equity securities of mid-capitalization companies.

The Baird Small/Mid Cap Growth Fund seeks long-term growth of capital through investments in equity securities of small- and mid-capitalization companies.

The Baird Small/Mid Cap Value Fund seeks long-term capital appreciation through investments in a diversified portfolio of common stocks of companies with small-to-medium market capitalizations.

The Baird SmallCap Value Fund seeks long-term capital appreciation through investments in a diversified portfolio of common stocks of companies with small market capitalizations.

The Chautauqua International Growth Fund seeks to provide long-term capital appreciation. The Fund invests primarily in equity securities of non-U.S. companies with medium to large market capitalizations.

The Chautauqua Global Growth Fund seeks to provide long-term capital appreciation. The Fund invests primarily in equity securities of both U.S. and non-U.S. companies with medium to large market capitalizations.

The beneficial ownership, either directly or indirectly, of more than 25% of the voting securities of a fund creates a presumption of control of the fund, under Section 2(a)(9) of the 1940 Act. On December 31, 2020, entities affiliated with the Advisor held 53% of the Baird Small/Mid Cap Growth Fund, 64% of the Baird Small/Mid Cap Value Fund, 61% of the Baird SmallCap Value Fund, and 31% of the Chautauqua Global Growth Fund. These shareholders included the Baird Foundation.

2. Significant Accounting Policies

The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Page 81

Notes to the Financial Statements

December 31, 2020

2.	Significant Accounting Policies (cont.)
a)	Investment Valuation – Section 2(a)(41) of the 1940 Act, together with the rules and interpretations of the U.S. Securities and Exchange Commission (the “SEC”) require the Funds, in computing net asset value, to value their portfolio securities using market quotations when they are “readily available.” When market quotations are not readily available (e.g., because there is no regular market quotation for such securities, the market for such security is limited, the validity of quotations is questionable or, for debt securities, the Funds’ independent pricing service does not provide a price), the Board of Directors (the “Board”) of the Corporation is responsible for ensuring the securities are valued at “fair value determined in good faith.” The Board has delegated such responsibility to the Advisor pursuant to pricing policies and procedures that the Board has adopted and regularly reviews. In general, the “fair value” of a security means the price that would be received to sell a security in an orderly transaction between market participants at the measurement date.
	The Funds determine the fair value of their investments and compute their net asset value per share as of the close of regular trading of the New York Stock Exchange (4:00 p.m. ET).
	Consistent with Section 2(a)(41) of the 1940 Act, the Funds price their securities as follows: common stocks that are listed on a securities exchange (other than NASDAQ) are valued at the last quoted sale price. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price.  Price information on listed stocks is taken from the exchange where the security is primarily traded.  Securities that were not traded on the valuation date, as well as stocks that are not listed on an exchange, including NASDAQ, are valued at the average of the current bid and ask price.  Debt securities are valued at their evaluated bid prices as provided by an independent pricing service using valuation methods that are designed to represent fair value, such as matrix pricing and other analytical pricing models, market transactions and dealer quotations.  Debt securities purchased with maturities of 60 days or less are valued as described above unless an evaluated price is not available, in which case such security is valued at acquisition cost, plus or minus any amortized discount or premium (“amortized cost”), or, if the Advisor does not believe amortized cost is reflective of the fair value of the security, the security is priced at fair value as described below.  Investments in mutual funds, including money market funds, are valued at their stated net asset value (“NAV”). Other assets and securities for which market quotations are not readily available are valued at fair value as determined in good faith by the Advisor in accordance with procedures approved by the Corporation’s Board.  In accordance with such procedures, the Advisor may, under certain circumstances, use alternative valuation methodologies, or it may use broker quotes or prices obtained from alternative independent pricing services or, if broker quotes or prices from alternative pricing services are unavailable or deemed to be unreliable, fair value will be determined by a valuation committee of the Advisor.  In determining fair value, the valuation committee takes into account factors deemed relevant by the valuation committee and available information. Consequently, the price of the security used by a Fund to calculate its NAV may differ from quoted or published prices for the same security.  Fair value pricing involves subjective judgments and there is no single standard for determining a security’s fair value.  As a result, different mutual funds could reasonably arrive at a different fair value for the same security. It is possible that the fair value determined for a security is materially different from the value that could be realized upon the sale of that security or from the values that other mutual funds may determine. The prices determined for any individual security on any given day may vary significantly from the amount that can be obtained in an actual sale of that security, and the Funds’ NAV may fluctuate significantly from day to day or from period to period.
	The Chautauqua International Growth and Chautauqua Global Growth Funds have retained an independent fair value pricing service to assist in valuing foreign securities in order to adjust for possible changes in value that may occur between the close of the foreign exchange and the time at which the Funds calculate their NAVs. The fair value pricing service uses statistical data based on historical performance of securities and markets, and other data in developing factors used to estimate fair value for that day.

Page 82

Notes to the Financial Statements

December 31, 2020

2.	Significant Accounting Policies (cont.)
b)	Foreign Securities – For purposes of these financial statements, foreign securities are defined as securities issued by companies that are organized outside the United States.  Investing in securities of foreign companies and foreign governments involves special risks and considerations not typically associated with investing in U.S. companies and the U.S. government.  These risks include foreign currency fluctuations and adverse political and economic developments. Moreover, securities of many foreign companies and foreign governments and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. companies and the U.S. government.  Occasionally, events that affect these values and exchange rates may occur after the close of the exchange on which such securities are traded.  If such events materially affect the value of a Fund’s securities, these securities may be valued at their fair value pursuant to procedures adopted by the Board.
c)	Foreign Currency Translation – Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. When a Fund purchases or sells a foreign security, it will customarily enter into a foreign exchange contract to minimize foreign exchange risk from the trade date to the settlement date of such transaction. The Funds do not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held nor currency gains or losses realized between the trade and settlement dates on securities transactions. Such fluctuations are included with the net realized and unrealized gain or loss from investments. Net realized gain (loss) on foreign currency translations include those gains and losses arising from the sale of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign currency transactions, the differences between the amounts of dividends, and foreign withholding taxes recorded on a Fund’s books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation (depreciation) on investments includes changes in the value of investments resulting from exchange rates.
d)	Income Tax Status – The Funds intend to continue to qualify as regulated investment companies as provided in Subchapter M of the Internal Revenue Code and to distribute substantially all of their taxable income to their shareholders in a manner which results in no tax expense to the Funds.  Therefore, no federal income or excise tax provision is recorded.
	There is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken on the tax return for the year ended December 31, 2020, or for any other tax years which are open for exam.  As of December 31, 2020, open tax years include the tax years ended December 31, 2017 through 2020.  The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months.  The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as interest expense and other expense, respectively, in the Statement of Operations.  During the period, the Funds did not incur any interest or penalties.
e)	Shareholder Transactions and Distributions – Shareholder transactions are recorded on trade date. Dividends from net investment income, if any, are declared and paid annually.  Distributions of net realized capital gains, if any, are declared and paid at least annually.  All distributions to shareholders are recorded on the ex-dividend date.  The book basis character of distributions may differ from their ultimate characterization for Federal income tax purposes.  GAAP requires that permanent financial reporting and tax differences be reclassified in the capital accounts.
f)	Allocation of Income and Expenses – Each Fund is charged for those expenses directly attributable to it. Expenses directly attributable to a class of shares, such as Rule 12b-1 distribution fees, are charged to that class of shares.  Income, expenses and realized and unrealized gains and losses are allocated to the classes based on their respective net assets.  Expenses that are not directly attributable to a Fund are allocated among the Funds in the series in proportion to their respective assets or are divided equally amongst the Funds.

Page 83

Notes to the Financial Statements

December 31, 2020

2.	Significant Accounting Policies (cont.)
g)	Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period.  Actual results could differ from those estimates.
h)	Securities Transactions and Investment Income – Investment transactions are recorded on trade date. The Funds determine the gain or loss realized from investment transactions using the identified cost basis.  For financial reporting purposes, investment transactions are recorded on the trade date.  When a capital gain tax is determined to apply, the Fund may record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.  Dividend income is recognized on the ex-dividend date net of withholding taxes, if any, and interest income is recognized on an accrual basis.  Withholding taxes on foreign dividends have been accounted for in accordance with the Funds’ interpretation of applicable tax laws of the countries in which they invest.  Distributions received from underlying investments in real estate investment trusts (“REITs”) may be classified as dividends, capital gains or return of capital.
i)	Guarantees and Indemnifications – In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown and would involve future claims against the Funds that have not yet occurred.  Based on experience, the Funds would expect the risk of loss to be remote.
j)	Other Matters – The global outbreak of COVID-19 (commonly referred to as “coronavirus”) has disrupted economic markets and the prolonged economic impact is uncertain. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The operational and financial performance of the issuers of securities in which the Funds invest depends on future developments, including the duration and spread of the outbreak, and such uncertainty may in turn adversely affect the value and liquidity of the Funds’ investments, impair the Funds’ ability to satisfy redemption requests, and negatively impact the Funds’ performance.
3.	Capital Share Transactions

The following table summarizes the capital share transactions of each Fund for the past two fiscal years:

Baird MidCap Fund

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		17,318,781		$	405,389,307			28,582,666		$	617,683,654
Shares issued to shareholders
in reinvestment of distributions		5,260,655			145,088,864			3,751,830			85,204,069
Shares redeemed		(28,981,798	)		(679,611,746	)		(28,056,428	)		(626,508,980	)
Net increase (decrease)		(6,402,362	)	$	(129,133,575	)		4,278,068		$	76,378,743
Shares Outstanding:
Beginning of year		79,737,647						75,459,579
End of year		73,335,285						79,737,647

Page 84

Notes to the Financial Statements

December 31, 2020

3. Capital Share Transactions (cont.)

Baird MidCap Fund (cont.)

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		2,665,048		$	57,380,183			2,001,794		$	41,249,843
Shares issued to shareholders
in reinvestment of distributions		707,847			18,177,515			346,621			7,400,350
Shares redeemed		(2,623,729	)		(57,306,903	)		(1,156,037	)		(24,035,320	)
Net increase		749,166		$	18,250,795			1,192,378		$	24,614,873
Shares Outstanding:
Beginning of year		6,889,569						5,697,191
End of year		7,638,735						6,889,569
Total net increase (decrease)				$	(110,882,780	)				$	100,993,616
Baird Small/Mid Cap Growth Fund
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		1,684,734		$	23,519,261			857,808		$	9,686,310
Shares issued to shareholders
in reinvestment of distributions		52,529			904,547			—			—
Shares redeemed		(287,296	)		(3,832,151	)		(179,809	)		(2,102,209	)
Net increase		1,449,967		$	20,591,657			677,999		$	7,584,101
Shares Outstanding:
Beginning of year		1,491,956						813,957
End of year		2,941,923						1,491,956
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		45,645		$	693,010			22,746		$	255,577
Shares issued to shareholders
in reinvestment of distributions		699			11,948			—			—
Shares redeemed		(31,548	)		(442,925	)		(225	)		(2,646	)
Net increase		14,796		$	262,033			22,521		$	252,931
Shares Outstanding:
Beginning of year		23,521						1,000
End of year		38,317						23,521
Total net increase				$	20,853,690					$	7,837,032

Page 85

Notes to the Financial Statements

December 31, 2020

3. Capital Share Transactions (cont.)

Baird Small/Mid Cap Value Fund

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		689,239		$	7,452,148			513,710		$	6,004,940
Shares issued to shareholders
in reinvestment of distributions		11,214			137,153			13,395			164,491
Shares redeemed		(801,809	)		(8,974,059	)		(175,075	)		(2,077,538	)
Net increase (decrease)		(101,356	)	$	(1,384,758	)		352,030		$	4,091,893
Shares Outstanding:
Beginning of year		1,974,781						1,622,751
End of year		1,873,425						1,974,781
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		5,288		$	55,459			14,425		$	166,971
Shares issued to shareholders
in reinvestment of distributions		4			50			263			3,216
Shares redeemed		(44,509	)		(468,142	)		(1,618	)		(19,542	)
Net increase (decrease)		(39,217	)	$	(412,633	)		13,070		$	150,645
Shares Outstanding:
Beginning of year		45,657						32,587
End of year		6,440						45,657
Total net increase (decrease)				$	(1,797,391	)				$	4,242,538
Baird SmallCap Value Fund
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		345,450		$	4,859,915			265,753		$	4,013,663
Shares issued to shareholders
in reinvestment of distributions		89,539			1,374,807			11,374			181,421
Shares redeemed		(543,876	)		(7,510,893	)		(330,733	)		(5,030,908	)
Net decrease		(108,887	)	$	(1,276,171	)		(53,606	)	$	(835,824	)
Shares Outstanding:
Beginning of year		2,064,404						2,118,010
End of year		1,955,517						2,064,404

Page 86

Notes to the Financial Statements

December 31, 2020

3. Capital Share Transactions (cont.)

Baird SmallCap Value Fund (cont.)

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		8,461		$	132,579			5,551		$	84,039
Shares issued to shareholders
in reinvestment of distributions		564			8,637			178			2,846
Shares redeemed		(45,333	)		(614,660	)		(6,225	)		(93,837	)
Net decrease		(36,308	)	$	(473,444	)		(496	)	$	(6,952	)
Shares Outstanding:
Beginning of year		55,355						55,851
End of year		19,047						55,355
Total net decrease				$	(1,749,615	)				$	(842,776	)
Chautauqua International Growth Fund
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		6,655,236		$	90,770,906			6,564,998	(1)	$	76,704,816	(1)
Shares issued to shareholders
in reinvestment of distributions		100,236			1,729,079			227,632			2,881,816
Shares redeemed		(2,058,055	)		(26,613,627	)		(1,503,822	)		(17,898,951	)
Redemption fees		—			34,899			—			32,968
Net increase		4,697,417		$	65,921,257			5,288,808		$	61,720,649
Shares Outstanding:
Beginning of year		13,684,014						8,395,206
End of year		18,381,431						13,684,014
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		40,351		$	617,683			30,595		$	368,522
Shares issued to shareholders
in reinvestment of distributions		108			1,859			1,577			19,935
Shares redeemed		(119,218	)		(1,643,224	)		(124,988	)		(1,465,249	)
Redemption fees		—			323			—			5
Net decrease		(78,759	)	$	(1,023,359	)		(92,816	)	$	(1,076,787	)
Shares Outstanding:
Beginning of year		118,654						211,470
End of year		39,895						118,654
Total net increase				$	64,897,898					$	60,643,862

⁽¹⁾  Includes purchase in-kind transactions. See additional information contained in this Note.

Page 87

Notes to the Financial Statements

December 31, 2020

3. Capital Share Transactions (cont.)

Chautauqua Global Growth Fund

	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Institutional Class Shares	Shares			Amount			Shares			Amount
Shares sold		3,815,907		$	60,626,046			1,067,813		$	14,402,805
Shares issued to shareholders
in reinvestment of distributions		28,094			550,653			45,894			667,696
Shares redeemed		(782,203	)		(11,881,788	)		(516,819	)		(6,920,288	)
Redemption fees		—			28,770			—			3,644
Net increase		3,061,798		$	49,323,681			596,888		$	8,153,857
Shares Outstanding:
Beginning of year		3,858,531						3,261,643
End of year		6,920,329						3,858,531
	Year Ended						Year Ended
	December 31, 2020						December 31, 2019
Investor Class Shares	Shares			Amount			Shares			Amount
Shares sold		146,201		$	2,360,863			68,911		$	930,554
Shares issued to shareholders
in reinvestment of distributions		204			3,988			1,472			21,240
Shares redeemed		(173,322	)		(2,704,322	)		(22,141	)		(302,224	)
Redemption fees		—			5,071			—			78
Net increase (decrease)		(26,917	)	$	(334,400	)		48,242		$	649,648
Shares Outstanding:
Beginning of year		111,878						63,636
End of year		84,961						111,878
Total net increase				$	48,989,281					$	8,803,505

During the year ended December 31, 2019, Chautauqua International Growth Fund satisfied a purchase in-kind request made by a large institutional shareholder by transferring cash and securities into the Fund. The transfer was effected in accordance with policies and procedures approved by the Board. Consideration received and shares sold were as follows:

Year Ended December 31, 2019

		Value of Cash and	Shares
Fund	Effective Date	Securities Received	Sold
Chautauqua International Growth
Fund – Institutional Class	February 28, 2019	$26,869,633	2,367,369
Total		$26,869,633

4. Investment Transactions and Income Tax Information

During the year ended December 31, 2020, purchases and sales of investment securities (excluding short-term investments) were as follows:

	Baird		Baird		Baird		Baird		Chautauqua		Chautauqua
	MidCap		Small/Mid Cap		Small/Mid Cap		SmallCap		International		Global Growth
	Fund		Growth Fund		Value Fund		Value Fund		Growth Fund		Fund
Purchases:	$	886,343,012	$	38,822,490	$	16,851,517	$	15,528,642	$	128,436,401	$	65,165,416
Sales:		1,276,883,684		19,183,099		18,151,890		17,888,086		64,703,668		19,759,276

The Funds did not purchase or sell U.S. Government securities during the year ended December 31, 2020.

Page 88

Notes to the Financial Statements

December 31, 2020

4. Investment Transactions and Income Tax Information (cont.)

As of December 31, 2020, the components of distributable earnings (accumulated losses) for income tax purposes were as follows:

	Baird			Baird			Baird
	MidCap			Small/Mid Cap			Small/Mid Cap
	Fund			Growth Fund			Value Fund
Cost of investments	$	1,265,427,882		$	38,962,168		$	18,977,800
Gross unrealized appreciation	$	1,016,850,168		$	14,315,009		$	4,964,360
Gross unrealized depreciation		(10,317,436	)		(336,500	)		(526,689	)
Net unrealized appreciation		1,006,532,732			13,978,509			4,437,671
Undistributed ordinary income		5,402,485			265,469			2,986
Undistributed long-term capital gains		45,452,011			865,824			—
Distributable earnings		50,854,496			1,131,293			2,986
Other accumulated losses		—			—			(1,225,264	)
Total distributable earnings	$	1,057,387,228		$	15,109,802		$	3,215,393
	Baird			Chautauqua			Chautauqua
	SmallCap			International			Global
	Value Fund			Growth Fund			Growth Fund
Cost of investments	$	21,803,136		$	219,008,242		$	97,665,668
Gross unrealized appreciation	$	9,247,876		$	112,064,762		$	44,208,922
Gross unrealized depreciation		(396,150	)		(9,972,087	)		(4,601,316	)
Net unrealized appreciation		8,851,726			102,092,675			39,607,606
Undistributed ordinary income		35,329			2,203,513			1,103,536
Distributable earnings		35,329			2,203,513			1,103,536
Other accumulated losses		(2,113,109	)		(3,171,306	)		(948,266	)
Total distributable earnings	$	6,773,946		$	101,124,882		$	39,762,876

The difference between book-basis and tax-basis unrealized appreciation is attributable primarily to the tax deferral of losses on wash sales and mark-to-market on passive foreign investment companies.

Additionally, U.S. generally accepted accounting principles require that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting.  These reclassifications are primarily due to differing treatments for equalization accounting for tax purposes.  These reclassifications have no effect on net assets or net asset value per share.  For the year ended December 31, 2020, the following table shows the reclassifications made:

	Total
	Distributable			Paid In
Fund	Earnings			Capital
Baird MidCap Fund	$	(36,806,866	)	$	36,806,866
Baird Small/MidCap Growth Fund		(36,264	)		36,264
Chautauqua International Growth Fund		(26,000	)		26,000
Chautauqua Global Growth Fund		(2,500	)		2,500

Distributions to Shareholders

Each Fund generally pays dividends from net investment income and distributes net realized capital gains, if any, at least annually. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Certain Funds also utilize earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction.

Page 89

Notes to the Financial Statements

December 31, 2020

4. Investment Transactions and Income Tax Information (cont.)

The tax components of distributions paid during the periods shown below are as follows:

	Year Ended December 31, 2020
	Ordinary		Long-Term
Fund	Income		Capital Gains		Total
Baird MidCap Fund	$	33,330,403	$	167,012,629	$	200,343,032
Baird Small/Mid Cap Growth Fund		503,155		443,273		946,428
Baird Small/Mid Cap Value Fund		163,120		—		163,120
Baird SmallCap Value Fund		49,386		1,547,362		1,596,748
Chautauqua International Growth Fund		2,106,751		—		2,106,751
Chautauqua Global Growth Fund		639,765		—		639,765
	Year Ended December 31, 2019
	Ordinary		Long-Term
Fund	Income		Capital Gains		Total
Baird MidCap Fund	$	4,716,248	$	111,977,504	$	116,693,752
Baird Small/Mid Cap Value Fund		211,978		—		211,978
Baird SmallCap Value Fund		227,402		—		227,402
Chautauqua International Growth Fund		3,658,929		—		3,658,929
Chautauqua Global Growth Fund		843,708		24,923		868,631

The Funds in the table above designated as long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capital gain to zero for the tax years ended December 31, 2019 and 2020.

At December 31, 2020, accumulated net realized capital loss carryovers without expiration were:

	Capital Loss Carryover				Year of Expiration
Fund	Short-term		Long-term		Short-term	Long-term
Baird Small/Mid Cap Value Fund	$	1,112,826	$	112,438	Indefinitely	Indefinitely
Baird SmallCap Value Fund		1,713,951		399,158	Indefinitely	Indefinitely
Chautauqua International Growth Fund		—		3,112,101	N/A	Indefinitely
Chautauqua Global Growth Fund		—		931,566	N/A	Indefinitely

During the year ended December 31, 2020, the Chautauqua International Growth Fund utilized $3,529,037 of long-term capital loss carryover.

5. Investment Advisory and Other Agreements

The Funds have entered into an Investment Advisory Agreement with Baird for the provision of investment advisory services.  Pursuant to the Investment Advisory Agreement, the Advisor is entitled to receive a fee, calculated daily and payable monthly, at the annual rates as follows:

Fund	Investment Advisory Fees
Baird MidCap Fund	0.75%
Baird Small/Mid Cap Growth Fund	0.75%
Baird Small/Mid Cap Value Fund	0.75%
Baird SmallCap Value Fund	0.85%
Chautauqua International Growth Fund	0.75%
Chautauqua Global Growth Fund	0.75%

Page 90

Notes to the Financial Statements

December 31, 2020

5. Investment Advisory and Other Agreements (cont.)

The Advisor has contractually agreed to waive its investment advisory fee and/or reimburse the Funds’ operating expenses, to the extent necessary to ensure that total operating expenses, including interest expense and the fees and expenses incurred by the Funds in connection with the Funds’ investments in other investment companies (to the extent, in the aggregate, such fees and expenses on an annual basis exceed 0.0049% of the Fund’s average daily net assets), but excluding taxes, brokerage commissions and extraordinary expenses, do not exceed the following annual percentages of the average daily net assets attributable to the Funds’ Institutional Class and Investor Class shares:

	Institutional	Investor
Fund	Class	Class
Baird MidCap Fund	0.85%	1.10%
Baird Small/Mid Cap Growth Fund	0.85%	1.10%
Baird Small/Mid Cap Value Fund	0.85%	1.10%
Baird SmallCap Value Fund	0.95%	1.20%
Chautauqua International Growth Fund	0.80%	1.05%
Chautauqua Global Growth Fund	0.80%	1.05%

The Expense Cap/Reimbursement Agreement is in effect through at least April 30, 2022.

To the extent that the Advisor reimburses or absorbs fees and expenses, it may seek payment of such amounts for three years after the date in which expenses were reimbursed or absorbed.  A Fund will make no such payment, however, if its total annual operating expenses exceed the expense limits in effect at the time the expenses were reimbursed or at the time these payments are proposed.

	Fiscal Year Ended December 31,
	2020		2019		2018
Subject to recovery on or before fiscal year ending December 31,	2023		2022		2021
Fund
Baird Small/Mid Cap Growth Fund	$	174,285	$	160,643	$	32,277	(a)
Baird Small/Mid Cap Value Fund		170,040		164,099		151,826
Baird SmallCap Value Fund		182,269		160,963		135,562
Chautauqua International Growth Fund		213,896		230,596		116,439
Chautauqua Global Growth Fund		209,929		206,779		155,834

^(a) For the period from close of business on October 31, 2018 (inception date) through December 31, 2018.

U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services, serves as transfer agent, administrator, and accounting services agent for the Funds. U.S. Bank, N.A. (“U.S. Bank”) serves as custodian for the Funds.

Robert W. Baird & Co. Incorporated (the “Distributor”) is the sole distributor of the Funds pursuant to a distribution agreement.

No commissions were earned by the Distributor for services rendered as a registered broker-dealer in securities transactions for the year ended December 31, 2020 for the Funds.

Certain officers and employees of the Advisor are also officers of the Funds.

6. Line of Credit

The Corporation maintains an uncommitted line of credit (“LOC”) with U.S. Bank to provide the sixteen Funds comprising the Corporation a temporary liquidity source to meet unanticipated redemptions. The LOC is unsecured at all times and is subject to certain restrictions and covenants. Under the terms of the LOC, borrowings for each Fund are limited to one third of the total eligible net assets (including the amount borrowed) of the respective Fund, or $600,000,000 of total borrowings for the Funds comprising the Corporation, whichever is less. U.S. Bank charges interest at the U.S. Prime Rate less 2%, but in no event less

Page 91

Notes to the Financial Statements

December 31, 2020

6. Line of Credit (cont.)

than a net rate of 1% per annum. As of December 31, 2020, the Prime Rate was 3.25%. The LOC matures on May 24, 2021, unless renewed. The Corporation has authorized U.S. Bank to charge any of the accounts of the borrowing Fund subject to the agreement for any missed payments.

During the year ended December 31, 2020, the Funds borrowed from the LOC as follows:

	Amount		Interest Charges		Borrowing
Fund	Borrowed		Accrued		Rate
Baird MidCap Fund	$	196,669,000	$	30,545		2.75	%
Baird Small/Mid Cap Growth Fund		23,000		2		2.75	%

No other borrowings occurred during the year ended December 31, 2020 nor were any other borrowings outstanding under the LOC as of December 31, 2020.

7. Distribution and Shareholder Service Plan

The Funds have adopted a distribution and shareholder service plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan allows the Funds to compensate the Distributor for the costs incurred in distributing the Funds’ Investor Class Shares, including amounts paid to brokers or dealers, at an annual rate of 0.25% of the average daily net assets of the Funds’ Investor Class Shares.

For the year ended December 31, 2020, the Funds incurred fees pursuant to the Plan as follows:

Fund
Baird MidCap Fund	$406,855
Baird Small/Mid Cap Growth Fund	750
Baird Small/Mid Cap Value Fund	828
Baird SmallCap Value Fund	1,323
Chautauqua International Growth Fund	2,571
Chautauqua Global Growth Fund	3,902

8. Redemption Fees

A redemption fee of 2.00% will be assessed on Institutional and Investor Class shares of the Chautauqua International Growth Fund and Chautauqua Global Growth Fund if redeemed (including in connection with an exchange) 90 days or less from their date of purchase, determined on a first-in, first-out (“FIFO”) basis.  The redemption fee is paid directly to the Funds and is designed to offset brokerage commissions, market impact and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term shareholder trading.

For the year ended December 31, 2020, the Funds charged redemption fees as follows:

Fund
Chautauqua International Growth Fund	$35,222
Chautauqua Global Growth Fund	$33,841

The Baird MidCap Fund, Baird Small/Mid Cap Growth Fund, Baird Small/Mid Cap Value Fund and Baird SmallCap Value Fund do not charge redemption fees.

9. Subsequent Events

In preparing these financial statements, management has evaluated events after December 31, 2020.  There were no subsequent events since December 31, 2020, through the date the financial statements were issued that would warrant adjustment to or additional disclosure in these financial statements.

Page 92

Report of Independent Registered Public

Accounting Firm

To the Shareholders and Board of Directors of Baird Funds, Inc.

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of the funds listed below (the “Funds”), each a series of Baird Funds, Inc., as of December 31, 2020, the related statements of operations, the statements of changes in net assets, the related notes, and the financial highlights for each of the periods indicated below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of December 31, 2020, the results of their operations, the changes in net assets, and the financial highlights for each of the periods indicated below in conformity with accounting principles generally accepted in the United States of America.

		Statements
	Statements of	of Changes	Financial
Fund Name	Operations	in Net Assets	Highlights
Baird MidCap Fund,	For the	For the	For the years ended December 31,
Baird Small/Mid Cap Value Fund,	year ended	years ended	2020, 2019, 2018, and 2017
Baird SmallCap Value Fund,	December 31,	December 31,
Chautauqua International Growth Fund,	2020	2020 and
Chautauqua Global Growth Fund		2019
Baird Small/Mid Cap Growth Fund	For the	For the	For the years ended December 31,
	year ended	years ended	2020 and 2019 and for the
	December 31,	December 31,	period from October 31, 2018
	2020	2020 and	(commencement of operations)
		2019	through December 31, 2018

The Funds’ financial highlights for the period ended December 31, 2016, were audited by other auditors whose report dated February 27, 2017, expressed an unqualified opinion on those financial highlights.

Basis for Opinion

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits.  We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Our procedures included confirmation of securities owned as of December 31, 2020, by correspondence with the custodian and brokers.  Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.  We believe that our audits provide a reasonable basis for our opinion.

We have served as the Funds’ auditor since 2017.

COHEN & COMPANY, LTD.

Milwaukee, Wisconsin

February 26, 2021

Page 93

Directors & Officers

As of December 31, 2020 (Unaudited)

Independent Directors

John W. Feldt

Independent Director, Audit Committee Chair

Term of Office:  Indefinite

Length of Time Served:  Since September 2000

Age:  78

c/o Robert W. Baird & Co. Incorporated

777 East Wisconsin Avenue

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Retired.

Number of Active Portfolios in Complex Overseen by Director:  16

Other Directorships Held by Director:  Director of Thompson IM Funds, Inc., a mutual fund complex (3 portfolios) (1987-2018).

Darren R. Jackson

Independent Director

Term of Office:  Indefinite

Length of Time Served:  Since November 2018

Age: 56

c/o Robert W. Baird & Co. Incorporated

777 East Wisconsin Avenue

Milwaukee, WI 53202

Principal Occupation(s) During the Past 5 Years: Retired; President, CEO and Director, Advance Auto Parts, Inc. (2008-2016).

Number of Active Portfolios in Complex Overseen by Director:  16

Other Directorships Held by Director:  Director of Cree, Inc., a Semiconductor Company, since 2016; Director of Fastenal Company, a tool and supply distributor (2012-2020).

Frederick P. Stratton, Jr.

Independent Director, Nominating

Committee Chair

Term of Office:  Indefinite

Length of Time Served:  Since May 2004

Age:  81

c/o Robert W. Baird & Co. Incorporated

777 East Wisconsin Avenue

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Retired; Chairman Emeritus, Briggs & Stratton Corporation, a manufacturing company (2003-2020).

Number of Active Portfolios in Complex Overseen by Director:  16

Other Directorships Held by Director:  Director of Weyco Group, Inc., a men’s footwear distributor, since 1976.

Marlyn J. Spear, CFA

Independent Director, Chair of Board

Term of Office:  Indefinite

Length of Time Served:  Since January 2008

Age:  67

c/o Robert W. Baird & Co. Incorporated

777 East Wisconsin Avenue

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Retired; Chief Investment Officer, Building Trades United Pension Trust Fund (July 1989-February 2017).

Number of Active Portfolios in Complex Overseen by Director:  16

Other Directorships Held by Director:  Management Trustee of AFL-CIO Housing Investment Trust, a mutual fund complex (1 portfolio) (1995-2018).

Page 94

Directors & Officers

As of December 31, 2020 (Unaudited) (Continued)

Independent Director

Cory L. Nettles

Independent Director

Term of Office:  Indefinite

Length of Time Served:  Since January 2008

Age:  50

c/o Generation Growth Capital, Inc.

411 East Wisconsin Avenue, Suite 1710

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Managing Director, Generation Growth Capital, Inc., a private equity fund, since March 2007; Of Counsel, Quarles & Brady LLP, a law firm (January 2005-December 2016).

Number of Active Portfolios in Complex Overseen by Director:  16

Other Directorships Held by Director:  Director of Weyco Group, Inc., a men’s footwear distributor, since 2007; Director of Associated Banc-Corp, since 2013.

Officers

Mary Ellen Stanek

President

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since September 2000

Age:  64

777 East Wisconsin Avenue

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Managing Director, the Advisor, and Chief Investment Officer, Baird Advisors, a department of the Advisor, since March 2000.

Charles B. Groeschell

Vice President

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since January 2010

Age:  67

777 East Wisconsin Avenue

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Managing Director, the Advisor, and Senior Portfolio Manager, Baird Advisors, a department of the Advisor, since February 2000.

Angela M. Palmer

Chief Compliance Officer and

AML Compliance Officer

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since March 2014

Age:  48

777 East Wisconsin Ave

Milwaukee, WI 53202

Chief Compliance Officer, the Advisor, since March 2014; Anti-Money Laundering Compliance Officer since May 2015; Director, the Advisor, since July 2014.

Heidi L. Schneider

Treasurer

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since August 2017

Age:  49

777 East Wisconsin Avenue

Milwaukee, WI  53202

Principal Occupation(s) During the Past 5 Years:  Managing Director, the Advisor, since December 2013.

Charles M. Weber

Secretary

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since September 2005

Age:  57

777 East Wisconsin Avenue

Milwaukee, WI 53202

Principal Occupation(s) During the Past 5 Years: Senior Associate General Counsel, the Advisor, since January 2013; Managing Director, the Advisor, since January 2009.

Page 95

Directors & Officers

As of December 31, 2020 (Unaudited) (Continued)

Officers (Continued)

Peter J. Hammond

Vice President

Term of Office: Re-elected by Board annually

Length of Time Served: Since August 2012

Age:  57

777 East Wisconsin Avenue

Milwaukee, WI 53202

Principal Occupation(s) During the Past 5 Years:  Managing Director, the Advisor, since January 2016;  Senior Vice President, the Advisor (March 2012-December 2015).

Dustin J. Hutter

Assistant Treasurer

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since February 2011

Age:  44

777 East Wisconsin Avenue

Milwaukee, WI 53202

Principal Occupation(s) During the Past 5 Years:  Senior Business Analyst, the Advisor, since September 2017; Director of Finance Services, the Advisor (August 2015-August 2017).

Andrew D. Ketter

Assistant Secretary

Term of Office:  Re-elected by Board annually

Length of Time Served:  Since February 2011

Age:  46

777 East Wisconsin Avenue

Milwaukee, WI 53202

Principal Occupation(s) During the Past 5 Years:  Associate General Counsel, the Advisor, since September 2010; Director, the Advisor, since July 2014.

Additional information about the Funds’ Directors is available in the Statement of Additional Information which may be obtained without charge, upon request, by calling 1-866-44BAIRD, or at www.bairdfunds.com.

Page 96

Baird Funds, Inc.

Disclosure Regarding the Board of Directors’ Approval of the Investment

Advisory Agreement for Baird Equity Funds (Unaudited)

The Board of Directors (the “Board”) of Baird Funds, Inc. (the “Corporation”), comprised of directors who are not “interested persons” of the Corporation within the meaning of the Investment Company Act of 1940 (the “Independent Directors”) met on August 17 and August 25, 2020 to consider the annual renewal of the investment advisory agreement between Robert W. Baird & Co. Incorporated (“Baird” or the “Advisor”) and the Corporation on behalf of the Baird MidCap Fund, Baird Small/Mid Cap Growth Fund, Baird Small/Mid Cap Value Fund, Baird SmallCap Value Fund, Chautauqua International Growth Fund and Chautauqua Global Growth Fund (the “Equity Funds” or the “Funds”).

The Board, all of whom are Independent Directors, approved the continuation of the investment advisory agreement for the Equity Funds through a process that concluded at the August 25, 2020 meeting.  In connection with its consideration of the investment advisory agreement, the Board reviewed and discussed various information that had been provided prior to the meeting, including a copy of the investment advisory agreement and related fee schedules, a memorandum provided by legal counsel summarizing the guidelines relevant to the Board’s consideration of the investment advisory agreement, a memorandum and other information provided in response to a request from the Board by the Advisor, including information about the operation of the Advisor and the Funds during the COVID-19 pandemic, a copy of the Advisor’s Form ADV Part 1A and Form ADV Part 2 brochures and brochure supplements, the annual report and audited consolidated financial statements for Baird Financial Group, Inc. (the Advisor’s parent company), a profitability analysis, comparative information about the Funds’ performance for the applicable periods ended June 30, 2020, comparative information about management fees and expense ratios, composite performance information for similar accounts managed by the Advisor, trading and brokerage commission information and other pertinent information.

The Board considered the Advisor’s 15(c) response and discussed various questions and information with representatives of the Advisor at the August 17, 2020 special meeting.  At the August 25, 2020 meeting, the Board met in executive session with the Funds’ legal counsel to consider the investment advisory agreement.  The Board also took into account information reviewed periodically throughout the year that was relevant to its consideration of the investment advisory agreement, including performance, management fee and other expense information, compliance matters, business initiatives of the Advisor, information about investments made by the Advisor in personnel, technology and services that benefit the Funds and discussions with the Funds’ portfolio managers.

Based on its evaluation of this information, the Board, including all of the Independent Directors, approved the continuation of the investment advisory agreement for the Funds for an additional one-year period.

In considering the investment advisory agreement and reaching its conclusions, the Board reviewed and analyzed various factors that it determined were relevant, including the factors below.  In deciding to approve the investment advisory agreement for each Fund, the Board did not identify any single factor as determinative but considered all factors together.

Nature, Extent and Quality of Services Provided to the Funds

The Board considered the nature, extent and quality of the services provided by the Advisor to the Funds.  The Board noted the Advisor’s overall reputation and depth of the Advisor’s personnel, resources and commitment to the Funds and the experience of the portfolio management teams employed to manage the Funds’ investments.  The Board considered the credentials and continuity of the portfolio management teams for the Funds and noted that the Advisor continues to add resources in support of the Funds, including investments in personnel, technology, systems, trading and research capabilities, databases, work from home infrastructure and virtual meeting technology.  The Board considered the information provided by the Advisor regarding the effective implementation of the Advisor’s business continuity plan and the performance and operation of the Funds during the COVID-19 pandemic.

Page 97

Baird Funds, Inc.

Disclosure Regarding the Board of Directors’ Approval of the Investment

Advisory Agreement for Baird Equity Funds (Unaudited) (Continued)

The Board considered the Advisor’s disciplined investment decision making process used for the Funds.  The Board also considered other services that the Advisor provides the Funds in its capacity as their investment advisor, such as making some of its key personnel available to serve as officers of the Funds, selecting broker-dealers for execution of portfolio transactions, ensuring adherence to the Funds’ investment policies and restrictions, proxy voting, compliance, risk management services, administering the Funds’ liquidity risk management program, administering the Funds’ cybersecurity program and business continuity plan, valuation support, providing support services to the Board and the committees of the Board and overseeing the Funds’ other service providers.  The Board noted the general stability of the assets managed by Baird Equity Asset Management despite outflows in certain Funds.  The Board also considered the strength of the Advisor’s compliance department, including the credentials of the Funds’ chief compliance officer, as well as the Advisor’s risk management system.  The Board concluded that the nature, extent and quality of the services provided by the Advisor to the Funds were appropriate and that each Fund was likely to continue to benefit from services provided under the investment advisory agreement.

Investment Performance of the Advisor and the Funds

In considering the investment performance of each of the Funds, the Board reviewed information as of June 30, 2020 regarding the performance of each class of the Fund for applicable one-year, three-year, five-year, ten-year and since-inception periods in comparison to its benchmark index and its peer group as determined by Lipper.  The Board also considered the Funds’ performance during the recent market downturn in the first six months of 2020 and noted that almost all of the Funds’ Institutional Class had seen positive relative performance against their benchmarks during this period.  The Board also reviewed composite investment performance of Baird Equity Asset Management with respect to accounts managed by the Advisor that are comparable to the Funds but did not consider it to be a material factor in the 15(c) process.

The Board noted that the performance of the Institutional Class of the MidCap Fund exceeded the benchmark index, but underperformed the Lipper peer group average for the one-year period, exceeded the benchmark index and Lipper peer group average for the three- and five-year periods, underperformed the benchmark index, but exceeded the Lipper peer group average for the ten-year period and exceeded the benchmark index and Lipper peer group average for the since-inception period.  The Board took note of the outperformance of the Small/Mid Cap Growth Fund since inception on October 31, 2018 as compared to both the benchmark index and Lipper peer group.  The Board noted that the SmallCap Value Fund and Small/Mid Cap Value Fund have outperformed the benchmark index over the one- and three-year periods, the Small Cap Value Fund has underperformed the benchmark index for the five-year period and both Funds underperformed the benchmark index for the since inception period.  During the relevant periods, the Funds underperformed the Lipper peer group index.  The Board noted that the Advisor considers the Funds to be appropriately classified as value funds whereas Lipper classifies the Funds as core funds and that underperformance versus the small-cap core peer group has been influenced by the growth tilt of many core managers as growth has continued to outperform value.  The Board took note of the Advisor’s commentary regarding the Funds’ underperformance in certain time periods and the Advisor’s commitment to closely monitor the Value Funds’ performance going forward.

The Board noted that the Institutional Class of the Chautauqua International Growth Fund had outperformed the benchmark index and Lipper peer group for the one-, three- and since-inception periods and the Institutional Class of the Chautauqua Global Growth Fund had outperformed the benchmark index and Lipper peer group for the one-year and since-inception periods and had outperformed the benchmark, but underperformed the Lipper peer group, for the three-year period.

The Board also considered the Advisor’s quarterly portfolio commentaries and reviews explaining the Funds’ performance and the investment strategies the Advisor employs for each Fund.  The Board concluded that, although past performance is not a guarantee of future results, each Fund and its shareholders were likely to benefit from the continued management by the Advisor.

Page 98

Baird Funds, Inc.

Disclosure Regarding the Board of Directors’ Approval of the Investment

Advisory Agreement for Baird Equity Funds (Unaudited) (Continued)

Advisory Fees and Expenses

The Board reviewed the fee and expense information for each of the Funds, including a comparison of each Fund’s advisory fee and total net expense ratio to industry data for other mutual funds in the same Morningstar peer group.  The Board noted that the advisory fee for the MidCap Fund and the Small/MidCap Growth Fund is slightly above the Morningstar category average; the advisory fee for the Small/Mid Cap Value Fund is below the Morningstar category average; and the advisory fee for the Small/Cap Value Fund, the Chautauqua International Growth Fund and the Chautauqua Global Growth Fund is above the category average.  The Board also considered the total expense ratio of each Fund, after fee waivers and expense reimbursements by the Advisor, relative to all other mutual funds in its Morningstar category.  The Board noted that the net expense ratios for each class of the Funds, after waivers, are below the Morningstar average except for the Investor Class of the SmallCap Value Fund, which has an expense ratio that is slightly above the peer group average.  The Board considered the Advisor’s commentary regarding the competitiveness of the Equity Funds’ fees, as well as fee comparisons for the Institutional Class of each Fund with the institutional shares of similarly sized funds, noting that the expense ratio of the Institutional Class of each Fund fell below the category average.

The Board also reviewed and considered management fees charged by the Advisor to other investment advisory clients, including separately managed accounts, subadvisory arrangements with unaffiliated mutual funds, two private limited partnerships managed in strategies similar to the International Growth Fund and the Global Growth Fund  and a collective investment trust, but did not consider these comparisons to be a material factor given the difference in services provided by the Advisor and the additional risks assumed by the Advisor as investment adviser to the Funds.

The Board noted the extent of the significant additional services provided to the Funds that the Advisor did not provide in other advisory and subadvisory relationships.  Those services included operational support, valuation services, administration of the Funds’ liquidity risk management program, oversight of the Funds’ other service providers, director support, preparation of regulatory filings, implementation of the Funds’ compliance program including employment of the Funds’ Chief Compliance Officer and other compliance staff, the operation of the Funds’ business continuity plan and cybersecurity plan, and various other services.  In addition, the Board noted that the provision of investment advisory services to the Funds requires more effort than it does for other accounts due to daily sales and redemption activity and additional regulatory and compliance requirements.

The Board concluded that the management fee and total expense ratio of each Fund were reasonable in light of the nature and quality of services provided and fees paid by comparable funds.

Costs and Profitability

The Board considered the fees realized, and the costs incurred, by the Advisor in providing investment management services to the Funds and a profitability analysis with respect to each Fund.  The Board considered that the Advisor’s profitability information does not reflect costs incurred for various support services to the Funds such as IT, compliance, risk, legal and finance.  The Board reviewed the financial condition of the Advisor and its parent company and determined it to be sound.  The Board concluded that the Advisor’s current level of profitability was reasonable.

Economies of Scale and Fee Levels Reflecting Those Economies

The Board reviewed asset levels for each Fund and considered whether there may be economies of scale in the management of each Fund at current levels and if its assets were to increase significantly.

Page 99

Baird Funds, Inc.

Disclosure Regarding the Board of Directors’ Approval of the Investment

Advisory Agreement for Baird Equity Funds (Unaudited) (Continued)

The Board recognized that the Advisor has waived fees and/or reimbursed expenses for each Fund pursuant to the fee waiver/expense reimbursement agreement.  Other than the MidCap Fund, the Board did not consider economies of scale to be a material factor due to the current asset size of each Fund.  The Board noted that the MidCap Fund’s management fee structure does not contain any breakpoint reductions as the Fund’s assets grow in size but considered the expenses incurred and management fees waived by the Advisor in the past.  The Directors concluded that the current fee structure of each Fund was reasonable.

Benefits Derived from the Relationship with the Funds

The Board considered other benefits to the Advisor from serving as advisor to the Funds (in addition to the advisory fee).  Those benefits include Rule 12b-1 fees received by the Distributor and its representatives.  The Board noted that the Advisor derives ancillary benefits from its association with the Equity Funds in the form of research products and services received from unaffiliated broker-dealers who execute portfolio trades for the Funds. The Board noted that the Advisor’s asset management and other businesses may experience indirect benefits from the Advisor’s association with the Funds.  The Board concluded that the other benefits realized by the Advisor from its relationship with the Funds were appropriate.

Based on its evaluation of the above factors, the Directors, all of whom are Independent Directors, concluded that the continuation of the investment advisory agreement was in the best interest of each Fund and its shareholders.

Page 100

Additional Information (Unaudited)

Proxy Voting

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling toll free, 1-866-44BAIRD, by accessing the Funds’ website at www.bairdfunds.com or by accessing the SEC’s website at www.sec.gov.

Each Fund’s proxy voting record for the most recent 12-month period ended June 30 is available without charge, upon request, by calling toll free, 1-866-44BAIRD, by accessing the Funds’ website at www.bairdfunds.com or by accessing the SEC’s website at www.sec.gov.

Portfolio Holdings Disclosure

The Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Part F of Form N-PORT.  The Funds’ filings on Part F of Form N-PORT are available on the SEC’s website at www.sec.gov. The Funds’ Form N-PORT reports may also be obtained by calling toll-free 1-866-44BAIRD.

Qualified Dividend Income/Dividends Received Deduction

For the fiscal year ended December 31, 2020, certain dividends paid by the Funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003.  The percentage of dividends declared from ordinary income designated as qualified dividend income was as follows:

Baird MidCap Fund	100.00%
Baird Small/Mid Cap Value Fund	100.00%
Baird SmallCap Value Fund	100.00%
Chautauqua International Growth Fund	100.00%
Chautauqua Global Growth Fund	100.00%

For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the fiscal year ended December 31, 2020 was as follows:

Baird MidCap Fund	100.00%
Baird Small/Mid Cap Value Fund	91.99%
Baird SmallCap Value Fund	96.44%
Chautauqua Global Growth Fund	6.34%

The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(C) for each Fund were as follows:

Baird MidCap Fund	100.00%
Baird Small/Mid Cap Growth Fund	100.00%

Page 101

Baird Funds, Inc. Privacy Policy

FACTS	WHAT DOES BAIRD FUNDS DO WITH YOUR PERSONAL INFORMATION?
Why?	Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
What?	The types of personal information we collect and share depend on the product or service you have with us. This information can include:
	•  Social Security number
	•  Account balances, transaction history and assets
	•  Checking account information and wire transfer instructions
How?	All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Baird Funds, Inc. chooses to share; and whether you can limit this sharing.

	Does Baird	Can you limit
Reasons we can share your personal information	Funds, Inc. share?	this sharing?
For our everyday business purposes—	Yes	No
such as to process your transactions, maintain
your account(s), respond to court orders and
legal investigations, or report to credit bureaus
For our marketing purposes—	Yes	No
to offer our products and services to you
For joint marketing with other financial companies	No	We do not share
For our affiliates’ everyday business purposes—	Yes	No
information about your transactions and experiences
For our affiliates’ everyday business purposes—	No	We do not share
information about your creditworthiness
For our affiliates to market to you	No	We do not share
For nonaffiliates to market to you	No	We do not share

Questions? Call (toll free) 1-866-442-2473, Email prospectus@bairdfunds.com or go to www.bairdfunds.com

Page A-1

Baird Funds, Inc. Privacy Policy

Who we are
Who is providing	Baird Funds, Inc.
this notice?
What we do
How does Baird	To protect your personal information from unauthorized access and
Funds, Inc. protect my	use, we use security measures that comply with federal law.  These
personal information?	measures include computer safeguards and secured files and buildings.
How does Baird	We collect your personal information, for example, when you
Funds, Inc. collect	•  open an account or give us your contact information
my personal	•  make a wire transfer or provide account information
information?	•  make deposits or withdrawals from your account
	We also collect your personal information from other companies.
Why can’t I limit	Federal law gives you the right to limit only
all sharing?	•  sharing for affiliates’ everyday business purposes—information about your creditworthiness
	•  affiliates from using your information to market to you
	•  sharing for nonaffiliates to market to you
	State laws and individual companies may give you additional rights to limit sharing.
Definitions
Affiliates	Companies related by common ownership or control. They can be financial and nonfinancial companies.

• Robert W. Baird & Co Incorporated (the investment adviser and distributor to the Baird Funds) and its affiliates may share information among each other.

Nonaffiliates	Companies not related by common ownership or control. They can be financial and nonfinancial companies.
	•  Baird Funds, Inc. does not share with nonaffiliates so they can market to you.
Joint marketing	A formal agreement between nonaffiliated financial companies that together market financial products or services to you. We do not have any joint marketing partners.
	•  Baird Funds, Inc. does not have any joint marketing partners.

Page A-2

(This Page Intentionally Left Blank.)

Baird Funds, Inc.

c/o U.S. Bancorp Fund Services, LLC

P.O. Box 701

Milwaukee, WI 53201-0701

1-866-44BAIRD

Board of Directors

John W. Feldt

Darren R. Jackson

Cory L. Nettles

Marlyn J. Spear (Chair)

Frederick P. Stratton, Jr.

Investment Advisor and Distributor

Robert W. Baird & Co. Incorporated

777 East Wisconsin Avenue

Milwaukee, WI 53202

Administrator and Transfer Agent

U.S. Bancorp Fund Services, LLC

P.O. Box 701

615 East Michigan Street

Milwaukee, WI 53202

Custodian

U.S. Bank, N.A.

1555 N. RiverCenter Drive, Suite 302

Milwaukee, WI 53212

Legal Counsel

Godfrey & Kahn, S.C.

833 East Michigan Street, Suite 1800

Milwaukee, WI 53202

Independent Registered Public

Accounting Firm

Cohen & Company, Ltd.

342 North Water Street, Suite 830

Milwaukee, WI 53202

(b). Not applicable

Item 2. Code of Ethics.

As of the end of the period covered by this report, the Registrant has adopted a code of ethics that applies to the President, Treasurer and Assistant Treasurer of the Registrant. The Registrant has not made any substantive amendments to its code of ethics during the period covered by this report. The Registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.

Item 3. Audit Committee Financial Expert.

The Registrant’s board of directors has determined that John W. Feldt, Frederick P. Stratton,  Jr., Marlyn J. Spear, and Darren R. Jackson, members of the audit committee, each qualify as an “audit committee financial expert” as such term is defined in paragraph (b) of Item 3 of Form N-CSR.  Mr. Feldt, Mr. Stratton, Ms. Spear, and Mr. Jackson are each “independent” as such term is defined in paragraph (a)(2) of Item 3 of Form N‑CSR.

Item 4. Principal Accountant Fees and Services.

Aggregate fees billed by Cohen & Company, Ltd. (“Cohen”), the Registrant’s principal accountant, during the last two fiscal years were as follows:

	FYE  12/31/2020	FYE  12/31/2019
Audit Fees	$234,300	$229,600
Audit-Related Fees	$0	$0
Tax Fees	$72,000	$72,000
All Other Fees	$0	$0

In the above table, “audit fees” are fees billed for professional services for the audit of the Registrant’s annual financial statements or for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements. “Tax fees” are fees billed for professional services rendered for tax compliance, tax advice and tax planning, and specifically relate to Cohen’s review of the Registrant’s federal and state tax returns.

The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre‑approve all audit and non‑audit services rendered to the Registrant, as well as all non-audit services provided to the Registrant’s investment adviser and any entity affiliated with the Registrant’s investment adviser with respect to any engagement that relates directly to the operations and financial reporting of the Registrant.  In accordance with its policies and procedures, the audit committee pre-approved all audit and tax services provided by Cohen to the Registrant during fiscal 2020. During the past two fiscal years, the Registrant did not receive any non-audit services from Cohen pursuant to any waivers of the pre-approval requirement under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.  Additionally, during the past two fiscal years, neither the Registrant’s investment adviser nor any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant received non-audit services from Cohen.  All of Cohen’s hours spent on auditing the Registrant’s financial statements were attributed to work performed by full-time permanent employees of Cohen.

Item 5. Audit Committee of Listed Registrants.

Not applicable because the Registrant is not a “listed issuer” within the meaning of Rule 10A-3 under the Securities Exchange Act of 1934.

Item 6. Investments.

(a)   The complete Schedules of Investments in securities of unaffiliated issuers as of the close of the reporting period for the Baird MidCap Fund, Baird Small/Mid Cap Growth Fund, Baird Small/Mid Cap Value Fund, Baird SmallCap Value Fund, Chautauqua International Growth Fund, Chautauqua Global Growth Fund, Baird Ultra Short Bond Fund, Baird Short-Term Bond Fund, Baird Intermediate Bond Fund, Baird Aggregate Bond Fund, Baird Core Plus Bond Fund, Baird Short-Term Municipal Bond Fund, Baird Strategic Municipal Bond Fund, Baird Quality Intermediate Municipal Bond Fund, Baird Core Intermediate Municipal Bond Fund, and Baird Municipal Bond Fund are included as part of the report to shareholders filed under Item 1.

(b)         Not Applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable because the Registrant is not a closed-end management investment company.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable because the Registrant is not a closed-end management investment company.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable because the Registrant is not a closed-end management investment company.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of directors.

Item 11. Controls and Procedures.

(a) The Registrant’s management, with the participation of its principal executive and principal financial officers, has evaluated the effectiveness of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)), as of a date within 90 days prior to the filing date of this Form N-CSR, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934.  Based on such evaluation, the Registrant's principal executive and principal financial officers have concluded that the design and operation of the Registrant's disclosure controls and procedures are effective in providing reasonable assurance that the information required to be disclosed on Form N-CSR is recorded, processed, summarized and reported within the applicable time periods.

(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

Not applicable because the Registrant is not a closed-end management investment company.

Item 13. Exhibits.

(a) (1) Code of ethics

 Incorporated by reference to the Registrant’s Form N-CSR filed on March 9, 2018.

  https://www.sec.gov/Archives/edgar/data/1282693/000089853118000184/0000898531-18-000184-index.htm

(2) A separate certification for each principal executive and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons. Not applicable because the Registrant is not a closed-end management investment company.

(4) Changes in the Registrant’s independent public accountant. There was no change in the Registrant’s independent public accountant for the period covered by the report.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)  BAIRD FUNDS, INC.

By (Signature and Title)      /s/ Mary Ellen Stanek

Mary Ellen Stanek, President (Principal Executive Officer)

Date    March 5, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By (Signature and Title)      /s/ Mary Ellen Stanek

Mary Ellen Stanek, President (Principal Executive Officer)

Date    March 5, 2021

By (Signature and Title)      /s/ Heidi Schneider

Heidi Schneider, Treasurer (Principal Financial Officer)

Date    March 5, 2021