Semi-Annual Report – Baird Funds · A June 30, 2019 summary of the Fund’s top 10 holdings and...

Baird MidCap FundBaird Small/Mid Cap Growth FundBaird Small/Mid Cap Value FundBaird SmallCap Value FundChautauqua International Growth FundChautauqua Global Growth Fund

Semi-Annual Report –Baird FundsJune 30, 2020

Go Green. Go Paperless.Sign up to receive your Baird Funds’ prospectuses and reports online.

Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and ExchangeCommission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent bymail, unless you specifically request paper copies of the reports from the Funds or from your financialintermediary, 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 bymail 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 youneed not take any action. You may elect to receive shareholder reports and other communications from the Fundselectronically anytime by contacting your financial intermediary or, if you are a direct investor, by calling1-866-442-2473, or sending an e-mail request to [email protected].

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 yourshareholder reports. If you invest directly with a Fund, you can call 1-866-442-2473 or send an e-mail request [email protected] to let the Fund know you wish to continue receiving paper copies of your shareholderreports. Your election to receive reports in paper will apply to all Funds held in your account if you invest throughyour financial intermediary or all Funds held with the fund complex if you invest directly with the Funds.

Table of Contents

Baird MidCap Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Baird Small/Mid Cap Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Baird Small/Mid Cap Value Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Baird SmallCap Value Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Chautauqua International Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24Chautauqua Global Growth Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Additional Information on Fund Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Statements of Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40Statements of Changes in Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61Statement Regarding Liquidity Risk Management Program . . . . . . . . . . . . . . . . . 72Additional Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

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

Cash(3.0%)

Utilities(0.0%)

Technology(27.9%)

Producer Durables(15.5%)

Materials & Processing(4.0%)

Health Care(20.3%)

Financial Services(10.3%)

Energy(0.0%)

Consumer Staples(1.7%)

Consumer Discretionary(17.3%)

0% 5% 10% 15% 20% 25% 30% 35%

MidCap Fund Russell Midcap® Growth Index

Page 1

Baird MidCap FundJune 30, 2020 (Unaudited)

Portfolio CharacteristicsA June 30, 2020 summary of the Fund’s top 10 holdings and equity sector analysis compared to the RussellMidcap® Growth Index is shown below.

Top 10 Holdings(1) Equity Sector Analysis(2)

Synopsys, Inc. 3.0%Chipotle Mexican Grill, Inc. 2.8%Pool Corp. 2.5%Monolithic Power Systems, Inc. 2.5%EPAM Systems, Inc. 2.5%O’Reilly Automotive, Inc. 2.3%IDEXX Laboratories, Inc. 2.2%Microchip Technology, Inc. 2.2%ResMed, Inc. 2.2%Generac Holdings, Inc. 2.2%

Net Assets: $1,873,369,812Portfolio Turnover Rate: 33%(5)

Number of Equity Holdings: 57

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 willcontinue to hold any particular security. Percentages shown relate to the Fund’s total net assets as ofJune 30, 2020.

(2) Percentages shown in parentheses relate to the Fund’s total value of investments as of June 30, 2020, andmay 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 tolimit the Fund’s total annual fund operating expenses to 0.85% of average daily net assets for theInstitutional Class shares and 1.10% of average daily net assets for the Investor Class shares, at leastthrough April 30, 2021.

(4) Includes 0.25% 12b-1 fee.(5) Not annualized.

Baird MidCap FundJune 30, 2020 (Unaudited)

Total Returns

Average Annual_______________________________Since

For the Periods Ended June 30, 2020 Six Months One Year Five Years Ten Years Inception(1)

Institutional Class Shares 4.45% 12.48% 11.66% 14.44% 8.24%Investor Class Shares 4.27% 12.17% 11.36% 14.16% 7.98%Russell Midcap® Growth Index(2) 4.16% 11.91% 11.60% 15.09% 7.69%

(1) For the period from December 29, 2000 (inception date) through June 30, 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 andhigher forecasted growth values. This index does not reflect any deduction for fees, expenses or taxes. Adirect investment in the index is not possible.

The returns shown in the table above reflect reinvestment of dividends and/or capital gains distributions inadditional shares. The returns in the table do not reflect the deduction of taxes that a shareholder would payon Fund distributions or the redemption of Fund shares. The returns reflect the actual performance for eachperiod and do not include the impact of trades executed on the last business day of the period that wererecorded 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 “PortfolioCharacteristics”.

The Fund focuses on growth-style stocks and therefore the performance of the Fund will typically be morevolatile than the performance of funds that focus on types of stocks that have a broader investment style. TheFund may invest up to 15% of its total assets in U.S. dollar denominated foreign securities and ADRs. Foreigninvestments involve additional risks such as currency rate fluctuations, political and economic instability, anddifferent and sometimes less strict financial reporting standards and regulation. The Fund invests a substantialportion of its assets in the stocks of mid-capitalization companies. Mid-capitalization companies often are morevolatile and face greater risks than larger, more established companies. U.S. and international markets haveexperienced significant periods of volatility in recent years and months due to a number of economic, politicaland global macro factors including the impact of the coronavirus (COVID-19) as a global pandemic andrelated 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 geopoliticalevents 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 sothat 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 currentperformance may be lower or higher than that stated.

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

Baird MidCap FundSchedule of Investments, June 30, 2020 (Unaudited)

Common Stocks% of

Shares Value Net Assets_______ ______ ________Aerospace & DefenseHEICO Corp. 241,078 $ 24,023,423 1.3%Mercury Systems, Inc.(1) 286,701 22,551,900 1.2%_____________ _______

46,575,323 2.5%

BanksPinnacle Financial Partners, Inc. 463,521 19,463,247 1.0%

Building ProductsTrex Co, Inc.(1) 262,886 34,193,582 1.8%

Capital MarketsMarketAxess Holdings, Inc. 71,571 35,851,345 1.9%

Commercial Services & SuppliesCopart, Inc.(1) 408,789 34,039,860 1.8%

Containers & PackagingAptarGroup, Inc. 147,352 16,500,477 0.9%

DistributorsPool Corp. 175,235 47,641,139 2.5%

Electrical EquipmentGenerac Holdings, Inc.(1) 333,482 40,661,460 2.2%Rockwell Automation, Inc. 141,002 30,033,426 1.6%_____________ _______

70,694,886 3.8%

Electronic Equipment, Instruments & ComponentsCDW Corp. 348,814 40,525,210 2.2%Dolby Laboratories, Inc. – Class A 380,288 25,049,571 1.3%Keysight Technologies, Inc.(1) 339,151 34,179,638 1.8%_____________ _______

99,754,419 5.3%

EntertainmentTake-Two Interactive Software, Inc.(1) 215,127 30,025,275 1.6%

Food ProductsLamb Weston Holdings, Inc. 511,762 32,716,945 1.7%

Health Care Equipment & SuppliesAlign Technology, Inc.(1) 131,134 35,988,415 1.9%Cooper Cos., Inc. 114,845 32,574,636 1.7%DexCom, Inc.(1) 92,151 37,358,015 2.0%IDEXX Laboratories, Inc.(1) 126,632 41,808,821 2.2%Insulet Corp.(1) 187,853 36,492,324 2.0%ResMed, Inc. 215,134 41,305,728 2.2%_____________ _______

225,527,939 12.0%

Health Care TechnologyVeeva Systems, Inc.(1) 157,686 36,964,752 2.0%


Common Stocks (cont.)% of

Shares Value Net Assets_______ ______ ________Hotels, Restaurants & LeisureChipotle Mexican Grill, Inc.(1) 50,175 $ 52,802,163 2.8%

Household DurablesDR Horton, Inc. 455,722 25,269,785 1.4%

InsuranceArthur J Gallagher & Co. 326,381 31,818,884 1.7%

IT ServicesBroadridge Financial Solutions, Inc. 157,497 19,874,546 1.1%EPAM Systems, Inc.(1) 183,448 46,230,730 2.5%Euronet Worldwide, Inc.(1) 253,915 24,330,135 1.3%Jack Henry & Associates, Inc. 113,050 20,804,592 1.1%VeriSign, Inc.(1) 136,525 28,237,466 1.5%_____________ _______

139,477,469 7.5%

Life Sciences Tools & ServicesICON PLC(1)(2) 230,173 38,774,943 2.1%Repligen Corp.(1) 201,895 24,956,241 1.3%_____________ _______

63,731,184 3.4%

MachineryGraco, Inc. 539,372 25,884,462 1.4%IDEX Corp. 187,037 29,559,328 1.6%_____________ _______

55,443,790 3.0%

MediaCable One, Inc. 21,175 37,582,449 2.0%

Multiline RetailOllie’s Bargain Outlet Holdings, Inc.(1) 271,531 26,515,002 1.4%

PharmaceuticalsCatalent, Inc.(1) 517,318 37,919,409 2.0%Jazz Pharmaceuticals PLC(1)(2) 146,869 16,205,526 0.9%_____________ _______

54,124,935 2.9%

Professional ServicesCoStar Group, Inc.(1) 26,926 19,135,500 1.0%TransUnion 463,588 40,350,700 2.2%Verisk Analytics, Inc. 201,600 34,312,320 1.8%_____________ _______

93,798,520 5.0%

Road & RailJ.B. Hunt Transport Services, Inc. 154,461 18,587,837 1.0%

Semiconductors & Semiconductor EquipmentMicrochip Technology, Inc. 393,402 41,429,164 2.2%Monolithic Power Systems, Inc. 197,183 46,732,371 2.5%_____________ _______

88,161,535 4.7%




Shares Value Net Assets_______ ______ ________SoftwareAlteryx, Inc.(1) 247,338 $ 40,632,687 2.2%Aspen Technology, Inc.(1) 270,329 28,008,788 1.5%Paycom Software, Inc.(1) 101,540 31,449,984 1.7%PTC, Inc.(1) 286,850 22,314,061 1.2%RealPage, Inc.(1) 467,386 30,384,764 1.6%Synopsys, Inc.(1) 288,561 56,269,395 3.0%Tyler Technologies, Inc.(1) 96,693 33,540,868 1.8%_____________ _______

242,600,547 13.0%

Specialty RetailBurlington Stores, Inc.(1) 181,999 35,841,063 1.9%Five Below, Inc.(1) 254,346 27,192,131 1.5%O’Reilly Automotive, Inc.(1) 103,595 43,682,904 2.3%Tractor Supply Co. 214,233 28,233,767 1.5%_____________ _______

134,949,865 7.2%

Trading Companies & DistributorsFastenal Co. 576,433 24,694,390 1.3%

Total Common Stocks(Cost $1,223,467,238) 1,819,507,544 97.1%

Short-Term InvestmentMoney Market Mutual FundFirst American Government Obligations Fund, Class U, 0.11%(3) 40,636,814 40,636,814 2.2%_____________ _______

Total Short-Term Investment(Cost $40,636,814) 40,636,814 2.2%

Total Investments(Cost $1,264,104,052) 1,860,144,358 99.3%Other Assets in Excess of Liabilities 13,225,454 0.7%_____________ _______TOTAL NET ASSETS $1,873,369,812 100.0%

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 ClassificationStandard (GICS®). GICS® was developed by and/or is the exclusive property of MSCI, Inc (“MSCI”) andStandard & Poor’s Financial Services LLC (“S&P”). GICS® is a service mark of MSCI and S&P and has beenlicensed for use by U.S. Bancorp Fund Services, LLC.



Summary of Fair Value Exposure at June 30, 2020 (Unaudited)The Fund has adopted authoritative fair valuation accounting standards which establish a definition of fairvalue and set out a hierarchy for measuring fair value. These standards require additional disclosures about thevarious inputs and valuation techniques used to develop the measurements of fair value and a discussion onchanges in valuation techniques and related inputs during the period. These standards define fair value as theprice that would be received to sell an asset or paid to transfer a liability in an orderly transaction betweenmarket participants at the measurement date.

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

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entitycan 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 associatedwith investing in those securities.

The following is a summary of the inputs used to value the Fund’s investments as of June 30, 2020:

Level 1 Level 2 Level 3 Total______ ______ ______ ____EquityCommon Stocks $1,819,507,544 $ — $ — $1,819,507,544_____________ ______ ______ _____________Total Equity 1,819,507,544 — — 1,819,507,544Short-Term InvestmentMoney Market Mutual Fund 40,636,814 — — 40,636,814_____________ ______ ______ _____________Total Short-Term Investment 40,636,814 — — 40,636,814_____________ ______ ______ _____________Total Investments* $1,860,144,358 $ — $ — $1,860,144,358_____________ ______ ______ __________________________ ______ ______ _____________

* Additional information regarding the industry classifications of these investments is disclosed in theSchedule of Investments.

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


Baird Small/Mid Cap Growth FundJune 30, 2020 (Unaudited)

Portfolio CharacteristicsA June 30, 2020 summary of the Fund’s top 10 holdings and equity sector analysis compared to theRussell 2500® Growth Index is shown below.


EPAM Systems, Inc. 3.1%SiteOne Landscape Supply, Inc. 2.5%Pool Corp. 2.5%LHC Group, Inc. 2.4%Avalara, Inc. 2.3%Insulet Corp. 2.3%IDEX Corp. 2.3%Cable One, Inc. 2.2%QUIDEL Corp. 2.1%Tyler Technologies, Inc. 2.1%

Net Assets: $27,552,313Portfolio Turnover Rate: 34%(5)








Cash(3.2%)

Utilities(0.0%)

Technology(22.9%)

Producer Durables(13.9%)


Health Care(25.3%)


Energy(0.0%)



0% 5% 10% 15% 20% 25% 30% 35%

Small/Mid Cap Growth Fund Russell 2500® Growth Index

Baird Small/Mid Cap Growth FundJune 30, 2020 (Unaudited)

Total Returns

AverageAnnual

One SinceFor the Periods Ended June 30, 2020 Six Months Year Inception(1)

Institutional Class Shares 8.73% 18.07% 18.87%Investor Class Shares 8.59% 17.75% 18.55%Russell 2500® Growth Index(2) 2.02% 9.21% 13.21%

(1) For the period from October 31, 2018 (inception date) through June 30, 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 ratiosand 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 Fund focuses on growth-style stocks and therefore the performance of the Fund will typically be morevolatile than the performance of funds that focus on types of stocks that have a broader investment style. TheFund may invest up to 15% of its total assets in U.S. dollar denominated foreign securities and ADRs. Foreigninvestments involve additional risks such as currency rate fluctuations, political and economic instability, anddifferent and sometimes less strict financial reporting standards and regulation. The Fund invests asubstantial 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 monthsdue 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 othercountries. These and other geopolitical events may cause market disruptions and could have an adverse effecton the value of the Fund’s investments.


For information about the performance of the Fund as of the most recent month-end, please call1-866-44BAIRD or visit www.bairdfunds.com. Mutual fund performance changes over time and currentperformance may be lower or higher than that stated.

Baird Small/Mid Cap Growth FundSchedule of Investments, June 30, 2020 (Unaudited)

Common Stocks% of

Shares Value Net Assets_______ ______ ________Aerospace & DefenseHEICO Corp. 2,424 $ 241,552 0.9%

BiotechnologyExact Sciences Corp.(1) 2,555 222,132 0.8%Pfenex, Inc.(1) 20,580 171,843 0.6%__________ _______

393,975 1.4%

Building ProductsTrex Co, Inc.(1) 3,813 495,957 1.8%

Capital MarketsMarketAxess Holdings, Inc. 666 333,613 1.2%

Commercial Services & SuppliesIAA, Inc.(1) 11,389 439,273 1.6%Mobile Mini, Inc. 6,595 194,553 0.7%__________ _______

633,826 2.3%

Construction & EngineeringMasTec, Inc.(1) 8,312 372,959 1.4%

Containers & PackagingAptarGroup, Inc. 4,875 545,903 2.0%

DistributorsPool Corp. 2,619 712,028 2.6%

Diversified Telecommunication ServicesBandwidth, Inc.(1) 2,216 281,432 1.0%

Electrical EquipmentGenerac Holdings, Inc.(1) 3,650 445,045 1.6%

Electronic Equipment, Instruments & ComponentsLittelfuse, Inc. 1,536 262,088 1.0%

Equity Real Estate Investment Trusts (REITs)National Storage Affiliates Trust 11,084 317,667 1.2%

Food ProductsLamb Weston Holdings, Inc. 6,148 393,042 1.4%

Health Care Equipment & SuppliesInsulet Corp.(1) 3,287 638,533 2.3%Novocure Ltd.(1)(2) 4,026 238,742 0.9%OrthoPediatrics Corp.(1) 6,518 285,228 1.0%QUIDEL Corp.(1) 2,679 599,399 2.2%Shockwave Medical, Inc.(1) 7,360 348,643 1.3%Silk Road Medical, Inc.(1) 6,335 265,373 0.9%STAAR Surgical Co.(1) 5,860 360,624 1.3%Tandem Diabetes Care, Inc.(1) 4,690 463,935 1.7%__________ _______

3,200,477 11.6%

Health Care Providers & ServicesLHC Group, Inc.(1) 3,973 692,573 2.5%




Shares Value Net Assets_______ ______ ________Health Care TechnologyInspire Medical Systems, Inc.(1) 3,580 $ 311,532 1.1%Phreesia, Inc.(1) 9,636 272,506 1.0%__________ _______

584,038 2.1%

Household DurablesLGI Homes, Inc.(1) 4,001 352,208 1.3%

InsuranceKinsale Capital Group, Inc. 2,116 328,424 1.2%

Internet & Direct Marketing RetailEtsy, Inc.(1) 5,351 568,437 2.1%

IT ServicesEPAM Systems, Inc.(1) 3,456 870,946 3.2%Euronet Worldwide, Inc.(1) 2,333 223,548 0.8%Jack Henry & Associates, Inc. 2,663 490,072 1.8%LiveRamp Holdings, Inc.(1) 4,248 180,413 0.6%WNS Holdings Ltd. – ADR(1)(2) 6,944 381,781 1.4%__________ _______

2,146,760 7.8%

Life Sciences Tools & ServicesICON PLC(1)(2) 2,869 483,312 1.7%Repligen Corp.(1) 3,510 433,871 1.6%__________ _______

917,183 3.3%

MachineryIDEX Corp. 4,029 636,743 2.3%Toro Co. 5,987 397,178 1.4%__________ _______

1,033,921 3.7%

MediaCable One, Inc. 354 628,297 2.3%

Multiline RetailOllie’s Bargain Outlet Holdings, Inc.(1) 3,418 333,768 1.2%

PharmaceuticalsCatalent, Inc.(1) 6,748 494,628 1.8%Jazz Pharmaceuticals PLC(1)(2) 2,970 327,710 1.2%Revance Therapeutics, Inc.(1) 14,545 355,189 1.3%__________ _______

1,177,527 4.3%

Professional ServicesTransUnion 3,840 334,234 1.2%

Road & RailSchneider National, Inc. 13,703 338,053 1.2%

Semiconductors & Semiconductor EquipmentMonolithic Power Systems, Inc. 2,494 591,078 2.1%




Shares Value Net Assets_______ ______ ________SoftwareAlteryx, Inc.(1) 3,366 $ 552,966 2.0%Avalara, Inc.(1) 4,870 648,149 2.4%Descartes Systems Group, Inc.(1)(2) 7,480 395,692 1.4%Fair Isaac Corp.(1) 1,171 489,525 1.8%Paycom Software, Inc.(1) 1,002 310,349 1.1%Paylocity Holding Corp.(1) 3,800 554,382 2.0%Ping Identity Holding Corp.(1) 8,700 279,183 1.0%Q2 Holdings, Inc.(1) 4,793 411,191 1.5%Rapid7, Inc.(1) 4,884 249,182 0.9%Smartsheet, Inc.(1) 5,445 277,259 1.0%Sprout Social, Inc.(1) 10,200 275,400 1.0%Tyler Technologies, Inc.(1) 1,713 594,205 2.2%Upland Software, Inc.(1) 11,433 397,411 1.4%__________ _______

5,434,894 19.7%

Specialty RetailBurlington Stores, Inc.(1) 2,798 551,009 2.0%Five Below, Inc.(1) 3,982 425,716 1.5%__________ _______

976,725 3.5%

Textiles, Apparel & Luxury GoodsCrocs, Inc.(1) 12,417 457,194 1.7%

Trading Companies & DistributorsSiteOne Landscape Supply, Inc.(1) 6,264 713,907 2.6%Watsco, Inc. 2,421 430,212 1.6%__________ _______

1,144,119 4.2%

Total Common Stocks(Cost $21,955,192) 26,668,997 96.8%

Short-Term InvestmentMoney Market Mutual FundFirst American Government Obligations Fund, Class U, 0.11%(3) 1,513,163 1,513,163 5.5%__________ _______


Total Investments(Cost $23,468,355) 28,182,160 102.3%Liabilities in Excess of Other Assets (629,847) (2.3)%__________ _______TOTAL NET ASSETS $27,552,313 100.0%

Notes to Schedule of Investments(1) Non-Income Producing.(2) Foreign Security.



Notes to Schedule of Investments (cont.)(3) Seven-Day Yield.ADR – American Depository Receipt



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






Level 1 Level 2 Level 3 Total______ ______ ______ ____EquityCommon Stocks $26,668,997 $ — $ — $26,668,997__________ ______ ______ __________Total Equity 26,668,997 — — 26,668,997Short-Term InvestmentMoney Market Mutual Fund 1,513,163 — — 1,513,163__________ ______ ______ __________Total Short-Term Investment 1,513,163 — — 1,513,163__________ ______ ______ __________Total Investments* $28,182,160 $ — $ — $28,182,160__________ ______ ______ ____________________ ______ ______ __________




Baird Small/Mid Cap Value FundJune 30, 2020 (Unaudited)

Portfolio CharacteristicsA June 30, 2020 summary of the Fund’s top 10 holdings and equity sector analysis compared to theRussell 2500® Value Index is shown below.


Boingo Wireless, Inc. 4.2%Atlantica Yield PLC 3.5%Atmos Energy Corp. 3.1%Laboratory Corp. of America Holdings 3.1%Old Republic International Corp. 2.7%Agree Realty Corp. 2.7%Tractor Supply Co. 2.6%Air Transport Services Group, Inc. 2.6%Science Applications International Corp. 2.5%Blackstone Mortgage Trust, Inc. 2.4%









Cash(7.9%)

Utilities(10.0%)

Real Estate(9.5%)

Materials(2.1%)

Information Technology(23.4%)

Industrials(6.2%)

Health Care(9.5%)


Energy(1.3%)



Communication Services(4.2%)

0% 5% 10% 15% 20% 25%

Small/Mid Cap Value Fund Russell 2500® Value Index

Baird Small/Mid Cap Value FundJune 30, 2020 (Unaudited)

Total Returns

Average AnnualSince

For the Periods Ended June 30, 2020 Six Months One Year Three Years Inception(1)

Institutional Class Shares -18.43% -14.96% -2.08% 0.71%Investor Class Shares -18.50% -15.20% -2.35% 0.45%Russell 2500® Value Index(2) -21.18% -15.50% -2.60% 2.61%

(1) For the period from November 30, 2015 (inception date) through June 30, 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 andlower forecasted growth values. This index does not reflect any deduction for fees, expenses or taxes. Adirect investment in the index is not possible.



The Fund focuses on small to mid cap value style stocks and therefore the performance of the Fund may bemore 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 politicaland 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, moreestablished companies. U.S. and international markets have experienced significant periods of volatility inrecent years and months due to a number of economic, political and global macro factors including the impactof the coronavirus (COVID-19) as a global pandemic and related public health issues, growth concerns in theU.S. and overseas, uncertainties regarding interest rates, trade tensions and the threat of tariffs imposed by theU.S. and other countries. These and other geopolitical events may cause market disruptions and could have anadverse effect on the value of the Fund’s investments.



Baird Small/Mid Cap Value FundSchedule of Investments, June 30, 2020 (Unaudited)

Common Stocks% of

Shares Value Net Assets_______ ______ ________Air Freight & LogisticsAir Transport Services Group, Inc.(1) 23,534 $ 524,102 2.6%

ChemicalsPolyOne Corp. 16,432 431,011 2.1%

Commercial Services & SuppliesACCO Brands Corp. 31,642 224,658 1.1%

Communications EquipmentCiena Corp.(1) 5,838 316,186 1.6%

Construction & EngineeringConstruction Partners, Inc.(1) 11,017 195,662 1.0%

Electrical EquipmentnVent Electric PLC(2) 16,666 312,154 1.5%

Electronic Equipment, Instruments & ComponentsDolby Laboratories, Inc. – Class A 2,952 194,448 1.0%

Energy Equipment & ServicesSolaris Oilfield Infrastructure, Inc. – Class A 34,342 254,818 1.3%

Equity Real Estate Investment Trusts (REITs)Agree Realty Corp. 8,181 537,573 2.7%EastGroup Properties, Inc. 2,571 304,946 1.5%Healthpeak Properties, Inc. 14,242 392,510 1.9%Physicians Realty Trust 25,453 445,937 2.2%VICI Properties, Inc. 11,781 237,858 1.2%__________ _______

1,918,824 9.5%

Food ProductsNomad Foods Ltd.(1)(2) 9,400 201,630 1.0%Simply Good Foods Co.(1) 21,413 397,853 2.0%__________ _______

599,483 3.0%

Gas UtilitiesAtmos Energy Corp. 6,355 632,831 3.1%Southwest Gas Holdings, Inc. 5,656 390,547 1.9%__________ _______

1,023,378 5.0%

Health Care Equipment & SuppliesHill-Rom Holdings, Inc. 3,679 403,881 2.0%ICU Medical, Inc.(1) 2,251 414,881 2.1%__________ _______

818,762 4.1%

Health Care Providers & ServicesDaVita, Inc.(1) 6,060 479,588 2.3%Laboratory Corp. of America Holdings(1) 3,737 620,754 3.1%__________ _______

1,100,342 5.4%




Shares Value Net Assets_______ ______ ________Household DurablesZAGG, Inc.(1) 55,356 $ 173,818 0.9%

Independent Power and Renewable Electricity ProducersAtlantica Yield PLC(2) 24,481 712,397 3.5%

InsuranceAmerican Financial Group, Inc. 7,272 461,481 2.3%Fidelity National Financial, Inc. 13,030 399,500 2.0%Old Republic International Corp. 33,735 550,218 2.7%__________ _______

1,411,199 7.0%

IT ServicesCACI International, Inc.(1) 1,817 394,071 1.9%Leidos Holdings, Inc. 4,181 391,634 1.9%Perspecta, Inc. 17,930 416,514 2.1%Science Applications International Corp. 6,519 506,397 2.5%VeriSign, Inc.(1) 1,937 400,630 2.0%WEX Inc.(1) 2,323 383,318 1.9%__________ _______

2,492,564 12.3%

Mortgage Real Estate Investment Trusts (REITs)Blackstone Mortgage Trust, Inc. 20,332 489,798 2.4%

Multi-UtilitiesAlgonquin Power & Utilities Corp.(2) 22,278 288,277 1.4%

Personal ProductsBellRing Brands, Inc.(1) 21,572 430,146 2.1%

Semiconductors & Semiconductor EquipmentSilicon Motion Technology Corp. – ADR(2) 8,650 421,861 2.1%Skyworks Solutions, Inc. 2,828 361,588 1.8%__________ _______

783,449 3.9%

SoftwareCerence, Inc.(1) 11,672 476,685 2.4%j2 Global, Inc.(1) 7,373 466,047 2.3%__________ _______

942,732 4.7%

Specialty RetailTractor Supply Co. 4,040 532,431 2.6%

Thrifts & Mortgage FinanceAxos Financial, Inc.(1) 21,615 477,259 2.4%Essent Group Ltd.(2) 13,500 489,645 2.4%Merchants Bancorp 20,706 382,854 1.9%NMI Holdings, Inc.(1) 15,075 242,406 1.2%__________ _______

1,592,164 7.9%




Shares Value Net Assets_______ ______ ________Wireless Telecommunication ServicesBoingo Wireless, Inc.(1) 63,532 $ 846,246 4.2%


Short-Term InvestmentMoney Market Mutual FundFirst American Government

Obligations Fund, Class U, 0.11%(3) 1,595,289 1,595,289 7.9%__________ _______Total Short-Term Investment(Cost $1,595,289) 1,595,289 7.9%

Total Investments(Cost $19,776,019) 20,204,338 100.0%Other Assets in Excess of Liabilities 9,894 0.0%__________ _______TOTAL NET ASSETS $20,214,232 100.0%

Notes to Schedule of Investments(1) Non-Income Producing.(2) Foreign Security.(3) Seven-Day Yield.ADR – American Depository Receipt



Baird SmallCap Value FundJune 30, 2020 (Unaudited)

Portfolio CharacteristicsA June 30, 2020 summary of the Fund’s top 10 holdings and equity sector analysis compared to theRussell 2000® Value Index is shown below.


Atlantica Yield PLC 5.2%Boingo Wireless, Inc. 5.0%CACI International, Inc. 4.5%Agree Realty Corp. 4.4%CyrusOne, Inc. 4.4%ICU Medical, Inc. 4.3%Southwest Gas Holdings, Inc. 4.3%j2 Global, Inc. 3.7%Air Transport Services Group, Inc. 3.5%Cerence, Inc. 3.3%









Cash(6.5%)

Utilities(12.6%)

Real Estate(14.3%)



Industrials(11.8%)

Health Care(7.7%)


Energy(0.0%)




0% 5% 10% 15% 20% 25% 30%

SmallCap Value Fund Russell 2000® Value Index

Baird SmallCap Value FundJune 30, 2020 (Unaudited)

Total Returns

Average Annual______________________________Since

For the Periods Ended June 30, 2020 Six Months One Year Three Years Five Years Inception(1)

Institutional Class Shares -17.97% -14.08% -2.49% 0.42% 5.27%Investor Class Shares -18.09% -14.29% -2.72% 0.17% 5.01%Russell 2000® Value Index(2) -23.50% -17.48% -4.35% 1.26% 6.04%

(1) For the period from May 1, 2012 (inception date) through June 30, 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 andlower forecasted growth values. This index does not reflect any deduction for fees, expenses or taxes. Adirect investment in the index is not possible.



The Fund focuses on small cap value style stocks and therefore the performance of the Fund may be morevolatile than the performance of funds that focus on types of stocks that have a broader investment style. TheFund may invest up to 15% of its total assets in U.S. dollar denominated foreign securities and ADRs. Foreigninvestments involve additional risks such as currency rate fluctuations and the potential for political andeconomic instability, and different and sometimes less strict financial reporting standards and regulation. TheFund 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 establishedcompanies. U.S. and international markets have experienced significant periods of volatility in recent yearsand months due to a number of economic, political and global macro factors including the impact of thecoronavirus (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 anadverse effect on the value of the Fund’s investments.



Baird SmallCap Value FundSchedule of Investments, June 30, 2020 (Unaudited)

Common Stocks% of

Shares Value Net Assets_______ ______ ________Air Freight & LogisticsAir Transport Services Group, Inc.(1) 37,638 $ 838,198 3.5%

BiotechnologyEagle Pharmaceuticals, Inc.(1) 9,055 434,459 1.8%

ChemicalsPolyOne Corp. 14,860 389,778 1.6%

Commercial Services & SuppliesACCO Brands Corp. 35,506 252,093 1.1%

Construction & EngineeringConstruction Partners, Inc.(1) 39,966 709,796 3.0%

Electrical EquipmentnVent Electric PLC(2) 30,710 575,198 2.4%

Electronic Equipment, Instruments & ComponentsDolby Laboratories, Inc. – Class A 7,072 465,832 2.0%Knowles Corp.(1) 16,380 249,959 1.0%__________ _______

715,791 3.0%

Equity Real Estate Investment Trusts (REITs)Agree Realty Corp. 16,213 1,065,356 4.5%CyrusOne, Inc. 14,609 1,062,805 4.4%Healthcare Realty Trust, Inc. 11,280 330,391 1.4%Physicians Realty Trust 27,872 488,317 2.0%QTS Realty Trust, Inc. 7,487 479,842 2.0%__________ _______

3,426,711 14.3%

Food ProductsNomad Foods Ltd.(1)(2) 13,184 282,797 1.2%Simply Good Foods Co.(1) 26,977 501,233 2.1%__________ _______

784,030 3.3%

Gas UtilitiesSouthwest Gas Holdings, Inc. 14,898 1,028,707 4.3%

Health Care Equipment & SuppliesHill-Rom Holdings, Inc. 3,452 378,960 1.6%ICU Medical, Inc.(1) 5,628 1,037,297 4.3%__________ _______

1,416,257 5.9%

Household DurablesZAGG, Inc.(1) 91,981 288,820 1.2%

Independent Power and Renewable Electricity ProducersAtlantica Yield PLC(2) 42,949 1,249,816 5.2%

InsuranceEverest Re Group Ltd.(2) 1,723 355,282 1.5%First American Financial Corp. 8,237 395,541 1.6%__________ _______

750,823 3.1%




Shares Value Net Assets_______ ______ ________IT ServicesCACI International, Inc.(1) 5,019 $ 1,088,521 4.6%Perspecta, Inc. 33,494 778,065 3.2%Science Applications International Corp. 5,909 459,011 1.9%Verra Mobility Corp.(1) 42,953 441,557 1.9%__________ _______

2,767,154 11.6%

Mortgage Real Estate Investment Trusts (REITs)Blackstone Mortgage Trust, Inc. 17,560 423,020 1.8%

Multi-UtilitiesAlgonquin Power & Utilities Corp.(2) 57,940 749,744 3.1%

Personal ProductsBellRing Brands, Inc.(1) 15,474 308,552 1.3%

Semiconductors & Semiconductor EquipmentSilicon Motion Technology Corp. – ADR(2) 10,361 505,306 2.1%

SoftwareCerence, Inc.(1) 19,359 790,622 3.3%j2 Global, Inc.(1) 14,152 894,548 3.7%__________ _______

1,685,170 7.0%

Thrifts & Mortgage FinanceAxos Financial, Inc.(1) 33,913 748,799 3.1%Essent Group Ltd.(2) 13,787 500,054 2.1%Merchants Bancorp 34,061 629,788 2.6%__________ _______

1,878,641 7.8%

Wireless Telecommunication ServicesBoingo Wireless, Inc.(1) 90,240 1,201,997 5.0%


Short-Term InvestmentMoney Market Mutual FundFirst American Government Obligations Fund, Class U, 0.11%(3) 1,550,007 1,550,007 6.5%__________ _______





Notes to Schedule of Investments(1) Non-Income Producing.(2) Foreign Security.(3) Seven-Day Yield.ADR – American Depository Receipt



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










Portfolio CharacteristicsA June 30, 2020 summary of the Fund’s top 10 holdings and equity sector analysis compared to the MSCIACWI ex USA Index is shown below.

Top 10 Holdings(1)

Genmab A/S 7.0% Net Assets: $206,036,372TAL Education Group – ADR 6.1% Portfolio Turnover Rate: 18%(5)

ASML Holding NV 5.6% Number of Equity Holdings: 27Adyen NV 5.2%Prosus NV 5.0% Annualized Portfolio Expense Ratio(3):Bank Rakyat Indonesia Persero Tbk PT 4.8% Gross_____Temenos Group AG 4.7% Institutional Class: 0.96%DBS Group Holdings Ltd. 4.6% Investor Class: 1.21%(4)

Wuxi Biologics Cayman, Inc. 4.5%Alibaba Group Holding Ltd. – ADR 4.4% Net___

Institutional Class: 0.80%Investor Class: 1.05%(4)

Equity Sector Analysis(2) Country Allocation(2)





Cash(3.8%)

Utilities(0.0%)


Real Estate(0.0%)

Materials(0.0%)


Industrials(9.2%)

Health Care(21.5%)

Financials(15.0%)

Energy(0.0%)

Consumer Staples(0.0)%


0% 5% 10% 15% 20% 25% 30% 35%

Chautauqua International Growth Fund

MSCI ACWIex USA Index

Page 24

Chautauqua International Growth FundJune 30, 2020 (Unaudited)

Cash (3.8%)

Taiwan (2.7%)

Switzerland (6.8%)

Singapore (4.6%)

Netherlands (15.9%)

Japan (8.2%)

Israel (2.6%)

Indonesia (4.8%)

India (6.5%)

Denmark (11.5%)

China (21.9%)

Canada (7.0%)

Austria (1.0%)

Australia (2.7%)

0% 3% 6% 9% 12%

15%

18%

21%

24%

27%

Chautauqua International Growth FundJune 30, 2020 (Unaudited)

Total Returns

Average Annual_____________________Since


Institutional Class Shares 4.68% 10.21% 8.68% 8.96%Investor Class Shares 4.52% 9.94% 8.35% 8.71%MSCI ACWI ex USA Index(2) -11.00% -4.80% 1.13% 4.75%

(1) For the period from April 15, 2016 (inception date) through June 30, 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 ofU.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 isnot possible.



The Fund focuses on both U.S. and non-U.S. stocks with medium to large market capitalizations and therefore theperformance of the Fund may be more volatile than the performance of funds that focus on types of stocks thathave a broader investment style. Under normal market conditions, the Fund will invest at least 65% of its totalassets in non-U.S. companies. Foreign investments involve additional risks such as currency rate fluctuations andthe potential for political and economic instability, and different and sometimes less strict financial reportingstandards and regulation. U.S. and international markets have experienced significant periods of volatility inrecent years and months due to a number of economic, political and global macro factors including the impact ofthe 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, upon the United Kingdom’s (UK) departure from the European Union onJanuary 31, 2020 following a June 2016 referendum referred to as “Brexit,” the UK entered a transition perioduntil December 31, 2020 during which time a trade deal and other key agreements will be negotiated. There issignificant 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 marketdisruptions and could have an adverse effect on the value of the Fund’s investments.



Chautauqua International Growth FundSchedule of Investments, June 30, 2020 (Unaudited)

Common Stocks% of

Shares Value Net Assets_______ ______ ________Application SoftwareAtlassian Corp. PLC (Australia)(1) 30,765 $ 5,546,007 2.7%Temenos Group AG (Switzerland)(2) 62,879 9,772,901 4.7%___________ _______

15,318,908 7.4%

Asset Management & Custody BanksJulius Baer Group Ltd. (Switzerland)(2) 100,873 4,236,424 2.1%

Automobile ManufacturersBYD Co. Ltd. (China)(2) 354,021 2,760,054 1.3%

BiotechnologyBeiGene Ltd. – ADR (China)(1) 31,361 5,908,412 2.9%Genmab A/S (Denmark)(1)(2) 42,758 14,417,704 7.0%___________ _______

20,326,116 9.9%

Diversified BanksBank Rakyat Indonesia Persero Tbk PT (Indonesia)(2) 45,884,156 9,793,658 4.8%DBS Group Holdings Ltd. (Singapore)(2) 626,845 9,432,032 4.6%___________ _______

19,225,690 9.4%

Diversified Support ServicesRecruit Holdings Co. Ltd. (Japan)(2) 134,028 4,609,250 2.2%

Education ServicesTAL Education Group – ADR (China)(1) 183,691 12,560,790 6.1%

Electronic Equipment & InstrumentsKeyence Corp. (Japan)(2) 13,910 5,829,146 2.8%

Environmental & Facilities ServicesWaste Connections, Inc. (Canada) 84,483 7,923,661 3.8%

Healthcare DistributorsSinopharm Group Co. Ltd. (China)(2) 2,071,964 5,326,933 2.6%

Industrial MachineryFANUC Corp. (Japan)(2) 34,883 6,253,475 3.0%

Information TechnologyConstellation Software, Inc. (Canada) 5,626 6,352,415 3.1%

Internet & Direct Marketing RetailProsus NV (Netherlands)(2) 109,878 10,244,704 5.0%

Internet RetailAlibaba Group Holding Ltd. – ADR (China)(1) 42,352 9,135,326 4.4%

IT ServicesAdyen NV (Netherlands)(1) 7,382 10,744,406 5.2%Tata Consultancy Services Ltd. (India)(2) 223,056 6,140,180 3.0%___________ _______

16,884,586 8.2%




Shares Value Net Assets_______ ______ ________Life Sciences Tools & ServicesWuxi Biologics Cayman, Inc. (China)(1)(2) 500,086 $ 9,179,387 4.5%

PharmaceuticalsNovo Nordisk A/S – ADR (Denmark) 139,174 9,113,114 4.4%

Regional BanksHDFC Bank Ltd. – ADR (India) 157,731 7,170,451 3.5%

Semiconductor EquipmentASML Holding NV (Netherlands) 31,388 11,551,725 5.6%

SemiconductorsAMS AG (Austria)(1)(2) 139,946 2,086,393 1.0%Taiwan Semiconductor

Manufacturing Co. Ltd. – ADR (Taiwan) 97,529 5,536,721 2.7%___________ _______7,623,114 3.7%

Semiconductors & Semiconductor EquipmentSolarEdge Technologies, Inc. (Israel)(1) 38,533 5,347,610 2.6%



Obligations Fund, Class U, 0.11%(3) 7,841,834 7,841,834 3.8%___________ _______Total Short-Term Investment(Cost $7,841,834) 7,841,834 3.8%

Total Investments(Cost $161,711,925) 204,814,713 99.4%Other Assets in Excess of Liabilities 1,221,659 0.6%___________ _______TOTAL NET ASSETS $206,036,372 100.0%

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 ClassificationStandard (GICS®). GICS® was developed by and/or is the exclusive property of MSCI, Inc.(“MSCI”) andStandard & Poor’s Financial Services LLC (“S&P”). GICS® is a service mark of MSCI and S&P and has beenlicensed for use by U.S. Bancorp Fund Services.










Level 1 Level 2 Level 3 Total______ ______ ______ ____EquityCommon Stocks $ 96,890,638 $100,082,241 $ — $196,972,879___________ ___________ ______ ___________Total Equity 96,890,638 100,082,241 — 196,972,879Short-Term InvestmentMoney Market Mutual Fund 7,841,834 — — 7,841,834___________ ___________ ______ ___________Total Short-Term Investment 7,841,834 — — 7,841,834___________ ___________ ______ ___________Total Investments* $104,732,472 $100,082,241 $ — $204,814,713___________ ___________ ______ ______________________ ___________ ______ ___________




Portfolio CharacteristicsA June 30, 2020 summary of the Fund’s top 10 holdings and equity sector analysis compared to the MSCIACWI Index is shown below.

Top 10 Holdings(1)

Genmab A/S 5.1% Net Assets: $83,040,915TAL Education Group – ADR 5.0% Portfolio Turnover Rate: 16%(5)

Incyte Corp. 4.6% Number of Equity Holdings: 42Prosus NV 4.4%Novo Nordisk A/S – ADR 3.8% Annualized Portfolio Expense Ratio(3):Amazon.com, Inc. 3.7% Gross_____Wuxi Biologics Cayman, Inc. 3.4% Institutional Class: 1.23%TJX Cos, Inc. 3.3% Investor Class: 1.48%(4)

Temenos Group AG 3.2%Regeneron Pharmaceuticals, Inc. 3.0% Net___

Institutional Class: 0.80%Investor Class: 1.05%(4)

Equity Sector Analysis(2) Country Allocation(2)





Page 29

Chautauqua Global Growth FundJune 30, 2020 (Unaudited)

Cash(4.2%)


Utilities(0.0%)

Real Estate(0.0%)

Materials(0.0%)


Industrials(7.1%)

Health Care(26.3%)

Financials(12.4%)

Energy(0.0%)



0% 5% 10% 15% 20% 25% 30%

Chautauqua Global Growth Fund MSCI ACWI Index

Cash (4.2%)

United States (31.0%)

Taiwan (1.9%)

Switzerland (4.2%)

Singapore (2.6%)

Netherlands (9.6%)

Japan (6.1%)

Israel (1.2%)

Indonesia (2.9%)

India (4.6%)

Denmark (8.9%)

China (14.7%)

Canada (5.7%)

Austria (0.7%)

Australia (1.7%)

0% 5% 10% 15% 20% 25% 30% 35%

Chautauqua Global Growth FundJune 30, 2020 (Unaudited)

Total Returns

Average Annual_____________________Since


Institutional Class Shares 6.36% 13.16% 10.81% 12.49%Investor Class Shares 6.55% 13.20% 10.65% 12.29%MSCI ACWI Index(2) -6.25% 2.11% 6.14% 8.58%

(1) For the period from April 15, 2016 (inception date) through June 30, 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 Indexincludes 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 Fund focuses on both U.S. and non-U.S. stocks with medium to large market capitalizations and therefore theperformance of the Fund may be more volatile than the performance of funds that focus on types of stocks thathave a broader investment style. Under normal market conditions, the Fund will invest at least 40% of its totalassets in non-U.S. companies. Foreign investments involve additional risks such as currency rate fluctuations andthe potential for political and economic instability, and different and sometimes less strict financial reportingstandards and regulation. U.S. and international markets have experienced significant periods of volatility inrecent years and months due to a number of economic, political and global macro factors including the impact ofthe 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, upon the United Kingdom’s (UK) departure from the European Union onJanuary 31, 2020 following a June 2016 referendum referred to as “Brexit,” the UK entered a transition perioduntil December 31, 2020 during which time a trade deal and other key agreements will be negotiated. There issignificant 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 marketdisruptions and could have an adverse effect on the value of the Fund’s investments.



Chautauqua Global Growth FundSchedule of Investments, June 30, 2020 (Unaudited)

Common Stocks% of

Shares Value Net Assets_______ ______ ________Apparel RetailTJX Cos, Inc. (United States) 54,756 $ 2,768,463 3.3%

Application SoftwareAtlassian Corp. PLC (Australia)(1) 7,660 1,380,868 1.7%Temenos Group AG (Switzerland)(2) 17,363 2,698,626 3.2%__________ _______

4,079,494 4.9%

Asset Management & Custody BanksJulius Baer Group Ltd. (Switzerland)(2) 17,873 750,623 0.9%

Automobile ManufacturersBYD Co. Ltd. (China)(2) 140,246 1,093,400 1.3%

BiotechnologyBeiGene Ltd. – ADR (China)(1) 7,185 1,353,654 1.6%Genmab A/S (Denmark)(1)(2) 12,634 4,260,097 5.1%Incyte Corp. (United States)(1) 37,139 3,861,342 4.7%Regeneron Pharmaceuticals, Inc. (United States)(1) 4,025 2,510,191 3.0%__________ _______

11,985,284 14.4%

Data Processing & Outsourced ServicesMasterCard, Inc. – Class A (United States) 7,944 2,349,041 2.8%

Diversified BanksBank Rakyat Indonesia Persero Tbk PT (Indonesia)(2) 11,438,106 2,441,385 3.0%DBS Group Holdings Ltd. (Singapore)(2) 142,376 2,142,308 2.6%__________ _______

4,583,693 5.6%

Diversified Support ServicesRecruit Holdings Co. Ltd. (Japan)(2) 51,611 1,774,913 2.1%

Education ServicesTAL Education Group – ADR (China)(1) 60,417 4,131,315 5.0%

Electronic Equipment & InstrumentsCoherent, Inc. (United States)(1) 4,785 626,739 0.8%Keyence Corp. (Japan)(2) 3,940 1,651,103 2.0%Universal Display Corp. (United States) 8,747 1,308,726 1.6%__________ _______

3,586,568 4.4%

Environmental & Facilities ServicesWaste Connections, Inc. (Canada) 25,838 2,423,345 2.9%

Healthcare DistributorsSinopharm Group Co. Ltd. (China)(2) 577,681 1,485,194 1.8%

Industrial MachineryFANUC Corp. (Japan)(2) 9,288 1,665,060 2.0%




Shares Value Net Assets_______ ______ ________Information TechnologyConstellation Software, Inc. (Canada) 2,006 $ 2,265,010 2.7%

Interactive Media & ServicesAlphabet, Inc. – Class A (United States)(1) 1,219 1,728,603 2.1%

Internet & Direct Marketing RetailProsus NV (Netherlands)(2) 39,385 3,672,142 4.4%

Internet RetailAlibaba Group Holding Ltd. – ADR (China)(1) 6,332 1,365,812 1.7%Amazon.com, Inc. (United States)(1) 1,102 3,040,220 3.7%__________ _______

4,406,032 5.4%

IT ServicesAdyen NV (Netherlands)(1) 1,722 2,506,349 3.0%EPAM Systems, Inc. (United States)(1) 3,487 878,759 1.1%Tata Consultancy Services Ltd. (India)(2) 57,397 1,579,997 1.9%__________ _______

4,965,105 6.0%

Life Sciences Tools & ServicesIllumina, Inc. (United States)(1) 4,494 1,664,353 2.0%Wuxi Biologics Cayman, Inc. (China)(1)(2) 152,771 2,804,206 3.4%__________ _______

4,468,559 5.4%

Other Diversified Financial ServicesCharles Schwab Corp. (United States) 39,901 1,346,260 1.6%

PharmaceuticalsBristol-Myers Squibb Company (United States) 12,664 744,643 0.9%Novo Nordisk A/S – ADR (Denmark) 47,834 3,132,171 3.8%__________ _______

3,876,814 4.7%

Regional BanksHDFC Bank Ltd. – ADR (India) 49,832 2,265,363 2.7%SVB Financial Group (United States)(1) 6,468 1,394,048 1.7%__________ _______

3,659,411 4.4%

Semiconductor EquipmentASML Holding NV (Netherlands) 4,763 1,752,927 2.1%

SemiconductorsAMS AG (Austria)(1)(2) 39,772 592,943 0.7%Nvidia Corp. (United States) 3,990 1,515,841 1.8%Taiwan Semiconductor Manufacturing Co. Ltd. – ADR (Taiwan) 27,808 1,578,660 1.9%__________ _______

3,687,444 4.4%




Shares Value Net Assets_______ ______ ________Semiconductors & Semiconductor EquipmentSolarEdge Technologies, Inc. (Israel)(1) 7,298 $ 1,012,816 1.2%


RightsPharmaceuticalsBristol-Myers Squibb Company (United States)(1) 9,805 35,102 0.0%__________ _______Total Rights(Cost $26,316) 35,102 0.0%


Obligations Fund, Class U, 0.11%(3) 3,476,917 3,476,917 4.2%__________ _______Total Short-Term Investment(Cost $3,476,917) 3,476,917 4.2%


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 ClassificationStandard (GICS®). GICS® was developed by and/or is the exclusive property of MSCI, Inc.(“MSCI”) andStandard & Poor’s Financial Services LLC (“S&P”). GICS® is a service mark of MSCI and S&P and has beenlicensed for use by U.S. Bancorp Fund Services.










Level 1 Level 2 Level 3 Total______ ______ ______ ____EquityCommon Stocks $50,905,519 $28,611,997 $ — $79,517,516__________ __________ ______ __________Total Equity 50,905,519 28,611,997 — 79,517,516RightsRights 35,102 — — 35,102__________ __________ ______ __________Total Rights 35,102 — — 35,102Short-Term InvestmentMoney Market Mutual Fund 3,476,917 — — 3,476,917__________ __________ ______ __________Total Short-Term Investment 3,476,917 — — 3,476,917__________ __________ ______ __________Total Investments* $54,417,538 $28,611,997 $ — $83,029,535__________ __________ ______ ____________________ __________ ______ __________




Additional Information on Fund ExpensesJune 30, 2020 (Unaudited)

ExampleAs a shareholder of a mutual fund, you incur two types of costs: (1) transaction costs, which may include salescharges (loads) on purchase payments, reinvested dividends, or other distributions; redemption fees; andexchange fees; and (2) ongoing costs, such as management fees; distribution and/or service (12b-1) fees; andother fund expenses. With the exception of the Chautauqua International Growth and Chautauqua GlobalGrowth Funds, which charge redemption fees, the Funds do not charge any sales loads, redemption fees orother transaction fees; however, you will be assessed fees for outgoing wire transfers, returned checks and stoppayment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, doing business as U.S. BankGlobal 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 andto compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on aninvestment of $1,000 invested at the beginning of the period and held for the entire period (1/1/20 – 6/30/20).

Actual ExpensesThe third and fourth columns of the following table provide information about account values based on actualreturns and actual expenses. You may use the information in these columns, together with the amount youinvested, 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 thefourth column entitled “Expenses Paid During Period” to estimate the expenses you paid on your accountduring this period.

Hypothetical Example for Comparison PurposesThe fifth and sixth columns of the following table provide information about hypothetical account values andhypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per yearbefore expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may notbe used to estimate the actual ending account balance or expenses you paid for the period. You may use thisinformation 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 shareholderreports of the other mutual funds. Please note that the expenses shown in the table are meant to highlight yourongoing 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 determinethe relative total costs of owning different mutual funds. In addition, if these transactional costs were included,your costs could have been higher.

Additional Information on Fund ExpensesJune 30, 2020 (Unaudited)

Actual vs. Hypothetical ReturnsFor the Six Months Ended June 30, 2020

Hypothetical (5% return

Actual before expenses)_________________ _________________Fund’s Beginning Ending Expenses Ending Expenses

Annualized Account Account Paid Account PaidExpense Value Value During Value DuringRatio(1) 1/1/20 6/30/20 Period(1) 6/30/20 Period(1)_________ ________ ________ _________ ________ _________

Baird MidCap FundInstitutional Class 0.81% $1,000.00 $1,044.50 $4.12 $1,020.84 $4.07Investor Class 1.06% $1,000.00 $1,042.70 $5.38 $1,019.59 $5.32

Baird Small/Mid Cap Growth Fund

Institutional Class 0.85% $1,000.00 $1,087.30 $4.41 $1,020.64 $4.27Investor Class 1.10% $1,000.00 $1,085.90 $5.70 $1,019.39 $5.52

Baird Small/Mid Cap Value Fund

Institutional Class 0.85% $1,000.00 $ 815.70 $3.84 $1,020.64 $4.27Investor Class 1.10% $1,000.00 $ 815.00 $4.96 $1,019.39 $5.52

Baird SmallCap Value Fund

Institutional Class 0.95% $1,000.00 $ 820.30 $4.30 $1,020.14 $4.77Investor Class 1.20% $1,000.00 $ 819.10 $5.43 $1,018.90 $6.02

Chautauqua International Growth Fund


Chautauqua Global Growth Fund


(1) Expenses are equal to the Fund’s annualized net expense ratio multiplied by the average account value overthe period, 182 days and divided by 366 to reflect the one-half year period.

Statements of Assets and LiabilitiesJune 30, 2020 (Unaudited)

BairdBaird Small/Mid

MidCap Cap GrowthFund Fund

ASSETS:Investments, at value (cost $1,264,104,052

and $23,468,355, respectively) $1,860,144,358 $28,182,160Dividends receivable 209,174 3,719Interest receivable 4,309 80Receivable for investments sold 14,782,213 160,045Receivable for Fund shares sold 1,552,522 43,183Prepaid expenses and other assets 30,849 15,803______________ ___________Total assets 1,876,723,425 28,404,990______________ ___________

LIABILITIES:Payable for securities purchased — 809,814Payable for Fund shares redeemed 1,962,703 131Payable to Advisor, net (Note 5) 1,154,329 1,228Payable to directors 13,886 13,784Accrued fund accounting and administration fees 65,863 11,114Accrued shareholder servicing fees 35,544 2,362Accrued professional fees 9,629 7,707Accrued Rule 12b-1 fees (Note 7) 61,973 232Accrued expenses and other liabilities 49,686 6,305______________ ___________Total liabilities 3,353,613 852,677______________ ___________

NET ASSETS $1,873,369,812 $27,552,313______________ _________________________ ___________NET ASSETS CONSIST OF:

Paid-in capital $1,102,684,856 $22,558,667Total distributable earnings 770,684,956 4,993,646______________ ___________

NET ASSETS $1,873,369,812 $27,552,313______________ _________________________ ___________INSTITUTIONAL CLASS SHARES

Net Assets $1,707,605,526 $27,135,422Shares outstanding ($0.01 par value, unlimited shares authorized) 71,375,077 2,035,594

Net asset value, offering and redemption price per share $ 23.92 $ 13.33______________ _________________________ ___________INVESTOR CLASS SHARES

Net Assets $ 165,764,286 $ 416,891Shares outstanding ($0.01 par value, unlimited shares authorized) 7,385,076 31,421

Net asset value, offering and redemption price per share $ 22.45 $ 13.27______________ _________________________ ___________



BairdSmall/Mid BairdCap Value SmallCap

Fund Value FundASSETS:

Investments, at value (cost $19,776,019 and $21,053,544, respectively) $20,204,338 $23,930,068

Dividends receivable 35,415 47,787Interest receivable 87 142Receivable from Advisor, net (Note 5) 415 —Prepaid expenses and other assets 23,073 14,471___________ ___________Total assets 20,263,328 23,992,468___________ ___________

LIABILITIES:Payable for Fund shares redeemed 6,365 6Payable to Advisor, net (Note 5) — 3,570Payable to directors 13,886 13,886Accrued fund accounting and administration fees 11,460 10,760Accrued shareholder servicing fees 6,086 5,197Accrued professional fees 9,618 9,742Accrued Rule 12b-1 fees (Note 7) 259 689Accrued expenses and other liabilities 1,422 927___________ ___________Total liabilities 49,096 44,777___________ ___________

NET ASSETS $20,214,232 $23,947,691___________ ______________________ ___________NET ASSETS CONSIST OF:

Paid-in capital $21,507,873 $21,760,401Total distributable earnings (loss) (1,293,641) 2,187,290___________ ___________

NET ASSETS $20,214,232 $23,947,691___________ ______________________ ___________INSTITUTIONAL CLASS SHARES

Net Assets $19,718,339 $23,365,262Shares outstanding ($0.01 par value, unlimited shares authorized) 1,961,261 1,783,077

Net asset value, offering and redemption price per share $ 10.05 $ 13.10___________ ______________________ ___________INVESTOR CLASS SHARES

Net Assets $ 495,893 $ 582,429Shares outstanding ($0.01 par value, unlimited shares authorized) 49,566 44,489

Net asset value, offering and redemption price per share $ 10.00 $ 13.09___________ ______________________ ___________



Chautauqua ChautauquaInternational GlobalGrowth Fund Growth Fund

ASSETS:Investments, at value (cost $161,711,925

and $66,996,917, respectively) $204,814,713 $83,029,535Foreign currency, at value (cost $970,535

and $105,534, respectively) 963,748 105,303Dividends receivable 288,011 72,910Interest receivable 840 501Receivable for Fund shares sold 252,312 45,599____________ ___________Total assets 206,319,624 83,253,848____________ ___________

LIABILITIES:Payable for Fund shares redeemed 104,657 124,245Payable to Advisor, net (Note 5) 109,182 33,150Payable to directors 13,886 13,886Accrued fund accounting and administration fees 21,206 19,674Accrued shareholder servicing fees 14,918 7,072Accrued professional fees 9,545 9,566Accrued Rule 12b-1 fees (Note 7) 842 1,142Accrued expenses and other liabilities 9,016 4,198____________ ___________Total liabilities 283,252 212,933____________ ___________

NET ASSETS $206,036,372 $83,040,915____________ _______________________ ___________NET ASSETS CONSIST OF:

Paid-in capital $177,398,439 $70,460,306Total distributable earnings 28,637,933 12,580,609____________ ___________

NET ASSETS $206,036,372 $83,040,915____________ _______________________ ___________INSTITUTIONAL CLASS SHARES

Net Assets $204,472,266 $80,527,829Shares outstanding ($0.01 par value, unlimited shares authorized) 15,484,040 5,232,063

Net asset value, offering and redemption price per share $ 13.21 $ 15.39____________ _______________________ ___________INVESTOR CLASS SHARES

Net Assets $ 1,564,106 $ 2,513,086Shares outstanding ($0.01 par value, unlimited shares authorized) 118,778 164,255

Net asset value, offering and redemption price per share $ 13.17 $ 15.30____________ _______________________ ___________


Statements of OperationsSix Months Ended June 30, 2020 (Unaudited)

BairdBaird Small/Mid

MidCap Cap Growth Fund Fund

INVESTMENT INCOME:Dividends $ 4,804,485 $ 48,341Interest 199,371 3,277Other income — 73____________ __________Total investment income 5,003,856 51,691____________ __________

EXPENSES:Investment advisory fees (Note 5) 6,881,494 80,707Shareholder servicing fees 332,298 4,181Fund accounting and administration fees 81,641 13,929Federal and state registration 56,466 31,586Reports to shareholders 34,820 859Interest expense (Note 6) 30,545 2Directors fees 28,897 28,795Professional fees 14,671 14,444Custody fees 13,237 8,235Miscellaneous expenses 1,180 49Rule 12b-1 fees – Investor Class Shares (Note 7) 185,629 436____________ __________Total expenses 7,660,878 183,223

Fee waiver by Advisor (Note 5) — (91,319)____________ __________Net expenses 7,660,878 91,904____________ __________

NET INVESTMENT LOSS (2,657,022) (40,213)____________ __________

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:

Net realized gain on investments 178,482,736 383,517Net change in unrealized appreciation (depreciation) on investments (96,788,807) 1,892,405____________ __________

Net realized and unrealized gain on investments 81,693,929 2,275,922____________ __________NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 79,036,907 $2,235,709____________ ______________________ __________



BairdSmall/Mid BairdCap Value SmallCap

Fund Value FundINVESTMENT INCOME:

Dividends (net of issuance fees and/or foreign taxes withheld of $1,261 and $2,586, respectively) $ 201,327 $ 179,913

Interest 4,139 5,599Other income 701 1,347__________ __________Total investment income 206,167 186,859__________ __________

EXPENSES:Investment advisory fees (Note 5) 78,375 113,588Directors fees 28,897 28,897Federal and state registration 23,094 22,326Professional fees 14,677 14,957Fund accounting and administration fees 13,987 13,337Shareholder servicing fees 7,621 10,895Reports to shareholders 1,015 1,198Custody fees 1,011 847Miscellaneous expenses 50 204Rule 12b-1 fees – Investor Class Shares (Note 7) 608 904__________ __________Total expenses 169,335 207,153

Fee waiver by Advisor (Note 5) (79,901) (79,297)__________ __________Net expenses 89,434 127,856__________ __________

NET INVESTMENT INCOME 116,733 59,003__________ __________

REALIZED AND UNREALIZED LOSS ON INVESTMENTS:

Net realized loss on investments (1,400,987) (2,331,275)Net change in unrealized depreciation on investments (3,205,000) (3,674,578)__________ __________Net realized and unrealized loss on investments (4,605,987) (6,005,853)__________ __________

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(4,489,254) $(5,946,850)__________ ____________________ __________



Chautauqua ChautauquaInternational GlobalGrowth Fund Growth Fund

INVESTMENT INCOME:Dividends (net of issuance fees and/or foreign taxes

withheld of $159,054 and $32,447, respectively) $ 1,168,639 $ 288,122Interest 42,804 13,610Other income 4,363 1,018___________ __________Total investment income 1,215,806 302,750___________ __________

EXPENSES:Investment advisory fees (Note 5) 664,754 242,961Federal and state registration 29,235 27,204Directors fees 28,897 28,897Fund accounting and administration fees 25,363 23,096Shareholder servicing fees 21,592 9,069Custody fees 17,932 9,359Professional fees 15,790 15,691Reports to shareholders 2,609 1,424Miscellaneous expenses 79 61Rule 12b-1 fees – Investor Class Shares (Note 7) 1,797 2,384___________ __________Total expenses 808,048 360,146

Fee waiver by Advisor (Note 5) (97,180) (98,603)___________ __________Net expenses 710,868 261,543___________ __________

NET INVESTMENT INCOME 504,938 41,207___________ __________

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSLATION:

Net realized gain (loss) on:Investments (7,679,254) (3,359,988)Foreign currency translation 47,424 26,396

Net change in unrealized appreciation (depreciation) on:Investments 18,023,437 8,705,079Foreign currency translation (5,450) (5,993)___________ __________

Net realized and unrealized gain on investments and foreign currency translation 10,386,157 5,365,494___________ __________

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $10,891,095 $ 5,406,701___________ _____________________ __________


Statements of Changes in Net AssetsBaird MidCap Fund

Six Months Ended June 30, 2020 Year Ended (Unaudited) December 31, 2019

OPERATIONS:Net investment loss $ (2,657,022) $ (1,758,440)Net realized gain on investments 178,482,736 113,591,259Net change in unrealized appreciation

(depreciation) on investments (96,788,807) 445,197,148_____________ _____________Net increase in net assets resulting from operations 79,036,907 557,029,967_____________ _____________

CAPITAL SHARE TRANSACTIONS:Proceeds from shares sold 261,726,133 658,933,497Shares issued to holders in reinvestment of distributions — 92,604,419Cost of shares redeemed (441,555,641) (650,544,300)_____________ _____________Net increase (decrease) in net assets resulting

from capital share transactions (179,829,508) 100,993,616_____________ _____________

DISTRIBUTIONS TO SHAREHOLDERS:Net distributions to shareholders:

Institutional Class — (109,134,740)Investor Class — (7,559,012)_____________ _____________

Total net distributions to shareholders — (116,693,752)_____________ _____________

TOTAL INCREASE (DECREASE) IN NET ASSETS (100,792,601) 541,329,831

NET ASSETS:Beginning of period 1,974,162,413 1,432,832,582_____________ _____________End of period $1,873,369,812 $1,974,162,413_____________ __________________________ _____________


Statements of Changes in Net AssetsBaird Small/Mid Cap Growth Fund


OPERATIONS:Net investment loss $ (40,213) $ (32,973)Net realized gain (loss) on investments 383,517 (32,734)Net change in unrealized appreciation on investments 1,892,405 3,511,422__________ __________Net increase in net assets resulting from operations 2,235,709 3,445,715__________ __________

CAPITAL SHARE TRANSACTIONS:Proceeds from shares sold 8,486,370 9,941,887Cost of shares redeemed (1,742,618) (2,104,855)__________ __________Net increase in net assets resulting from capital share transactions 6,743,752 7,837,032__________ __________

TOTAL INCREASE IN NET ASSETS 8,979,461 11,282,747

NET ASSETS:Beginning of period 18,572,852 7,290,105__________ __________End of period $27,552,313 $18,572,852__________ ____________________ __________


Statements of Changes in Net AssetsBaird Small/Mid Cap Value Fund


OPERATIONS:Net investment income $ 116,733 $ 228,828Net realized gain (loss) on investments (1,400,987) 346,989Net change in unrealized appreciation

(depreciation) on investments (3,205,000) 2,878,359__________ __________Net increase (decrease) in net assets

resulting from operations (4,489,254) 3,454,176__________ __________

CAPITAL SHARE TRANSACTIONS:Proceeds from shares sold 3,185,685 6,171,911Shares issued to holders in reinvestment of distributions — 167,707Cost of shares redeemed (3,369,076) (2,097,080)__________ __________Net increase (decrease) in net assets resulting

from capital share transactions (183,391) 4,242,538__________ __________


Institutional Class — (208,297)Investor Class — (3,681)__________ __________

Total net distributions to shareholders — (211,978)__________ __________




Statements of Changes in Net AssetsBaird SmallCap Value Fund


OPERATIONS:Net investment income $ 59,003 $ 284,077Net realized gain (loss) on investments (2,331,275) 2,315,161Net change in unrealized appreciation

(depreciation) on investments (3,674,578) 2,792,139__________ __________Net increase (decrease) in net assets

resulting from operations (5,946,850) 5,391,377__________ __________

CAPITAL SHARE TRANSACTIONS:Proceeds from shares sold 1,848,492 4,097,702Shares issued to holders in reinvestment of distributions — 184,267Cost of shares redeemed (5,787,815) (5,124,745)__________ __________Net decrease in net assets resulting from capital share transactions (3,939,323) (842,776)__________ __________







Statements of Changes in Net AssetsChautauqua International Growth Fund


OPERATIONS:Net investment income $ 504,938 $ 3,654,520Net realized loss on investments

and foreign currency translation (7,631,830) (6,741,312)Net change in unrealized appreciation

on investments and foreign currency translation 18,017,987 32,743,535___________ ___________Net increase in net assets resulting from operations 10,891,095 29,656,743___________ ___________

CAPITAL SHARE TRANSACTIONS:Proceeds from shares sold 35,207,555 77,073,338Shares issued to holders in reinvestment of distributions — 2,901,751Cost of shares redeemed (14,243,377) (19,364,200)Redemption fees 11,933 32,973___________ ___________Net increase in net assets resulting from capital share transactions 20,976,111 60,643,862___________ ___________


Institutional Class — (3,632,612)Investor Class — (26,317)___________ ___________

Total net distributions to shareholders — (3,658,929)___________ ___________


NET ASSETS:Beginning of period 174,169,166 87,527,490___________ ___________End of period $206,036,372 $174,169,166___________ ______________________ ___________


Statements of Changes in Net AssetsChautauqua Global Growth Fund


OPERATIONS:Net investment income $ 41,207 $ 792,759Net realized loss on investments

and foreign currency translation (3,333,592) (157,584)Net change in unrealized appreciation

on investments and foreign currency translation 8,699,086 11,322,762__________ __________Net increase in net assets resulting from operations 5,406,701 11,957,937__________ __________

CAPITAL SHARE TRANSACTIONS:Proceeds from shares sold 27,057,443 15,333,359Shares issued to holders in reinvestment of distributions — 688,936Cost of shares redeemed (6,887,672) (7,222,512)Redemption fees 26,242 3,722__________ __________Net increase in net assets resulting from capital share transactions 20,196,013 8,803,505__________ __________







Financial HighlightsBaird MidCap Fund – Institutional Class

Six Months Ended

June 30, 2020 Year Ended December 31,(Unaudited) 2019 2018 2017 2016 2015

Per Share Data:Net asset value, beginning of period $22.90 $17.72 $19.16 $15.80 $14.99 $15.57______ ______ ______ ______ ______ ______

Income from investment operations:

Net investment loss(1) (0.03) (0.02) (0.03) (0.03) (0.02) (0.03)Net realized and unrealized

gains (losses) on investments 1.05 6.44 (0.30) 4.28 0.83 (0.53)______ ______ ______ ______ ______ ______Total from

investment operations 1.02 6.42 (0.33) 4.25 0.81 (0.56)______ ______ ______ ______ ______ ______Less distributions:

Distributions from net realized gains — (1.24) (1.11) (0.89) — (0.02)______ ______ ______ ______ ______ ______

Total distributions — (1.24) (1.11) (0.89) — (0.02)______ ______ ______ ______ ______ ______Net asset value, end of period $23.92 $22.90 $17.72 $19.16 $15.80 $14.99______ ______ ______ ______ ______ ____________ ______ ______ ______ ______ ______

Total return 4.45%(2) 36.31% (1.61)% 26.88% 5.40% (3.59)%

Supplemental data and ratios:Net assets, end of period (millions) $1,707.6 $1,825.8 $1,337.4 $1,279.6 $1,105.1 $1,035.0

Ratio of expenses to average net assets 0.81%(3) 0.82% 0.81% 0.83% 0.82% 0.80%

Ratio of expenses to average net assets (before waivers) 0.81%(3) 0.82% 0.81% 0.83% 0.82% 0.80%

Ratio of net investment loss to average net assets (0.27)%(3) (0.07)% (0.15)% (0.17)% (0.14)% (0.18)%

Ratio of net investment lossto average net assets (before waivers) (0.27)%(3) (0.07)% (0.15)% (0.17)% (0.14)% (0.18)%

Portfolio turnover rate(4) 33%(2) 43% 38% 45% 57% 53%

(1) Calculated using average shares outstanding during the period.(2) Not annualized.(3) Annualized.(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.


Financial HighlightsBaird MidCap Fund – Investor Class

Six Months Ended




Net investment loss(1) (0.05) (0.07) (0.08) (0.07) (0.06) (0.06)Net realized and unrealized

gains (losses) on investments 0.97 6.08 (0.28) 4.09 0.80 (0.52)______ ______ ______ ______ ______ ______Total from

investment operations 0.92 6.01 (0.36) 4.02 0.74 (0.58)______ ______ ______ ______ ______ ______Less distributions:

Distributions from net realized gains — (1.24) (1.11) (0.89) — (0.02)______ ______ ______ ______ ______ ______

Total distributions — (1.24) (1.11) (0.89) — (0.02)______ ______ ______ ______ ______ ______Net asset value, end of period $22.45 $21.53 $16.76 $18.23 $15.10 $14.36______ ______ ______ ______ ______ ____________ ______ ______ ______ ______ ______

Total return 4.27%(2) 35.94% (1.86)% 26.61% 5.08% (3.80)%

Supplemental data and ratios:Net assets, end of period (millions) $165.8 $148.3 $95.5 $111.4 $137.2 $184.1

Ratio of expenses to average net assets 1.06%(3) 1.07% 1.06% 1.08% 1.07% 1.05%


Ratio of net investment loss to average net assets (0.52)%(3) (0.32)% (0.40)% (0.42)% (0.39)% (0.43)%

Ratio of net investment loss to average net assets (before waivers) (0.52)%(3) (0.32)% (0.40)% (0.42)% (0.39)% (0.43)%


(1) Calculated using average shares outstanding during the period.(2) Not annualized.(3) Annualized.(4) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the



Financial HighlightsBaird Small/Mid Cap Growth Fund – Institutional Class

Six Months Ended Year Ended Period Ended

June 30, 2020 December 31, December 31, (Unaudited) 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) (0.02) (0.03) (0.00)(3)

Net realized and unrealized gains (losses) on investments 1.09 3.34 (1.05)______ ______ ______

Total from investment operations 1.07 3.31 (1.05)______ ______ ______Net asset value, end of period $13.33 $12.26 $ 8.95______ ______ ____________ ______ ______

Total return 8.73%(4) 36.98% (10.50)%(4)

Supplemental data and ratios:Net assets, end of period (millions) $27.1 $18.3 $7.3Ratio of expenses to average net assets 0.85%(5) 0.85% 0.85%(5)

Ratio of expenses to average net assets (before waivers) 1.70%(5) 2.10% 3.88%(5)

Ratio of net investment loss to average net assets (0.37)%(5) (0.25)% (0.03)%(5)

Ratio of net investment loss to average net assets (before waivers) (1.22)%(5) (1.50)% (3.06)%(5)

Portfolio turnover rate(6) 34%(4) 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



Financial HighlightsBaird Small/Mid Cap Growth Fund – Investor Class

Six Months Ended Year Ended Period Ended

June 30, 2020 December 31, December 31, (Unaudited) 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) (0.04) (0.06) (0.00)(3)

Net realized and unrealized gains (losses) on investments 1.10 3.33 (1.06)______ ______ ______

Total from investment operations 1.06 3.27 (1.06)______ ______ ______Net asset value, end of period $13.27 $12.21 $ 8.94______ ______ ____________ ______ ______

Total return 8.59%(4) 36.69% (10.60)%(4)

Supplemental data and ratios:Net assets, end of period (thousands) $416.9 $287.3 $8.9Ratio of expenses to average net assets 1.10%(5) 1.10% 1.10%(5)

Ratio of expenses to average net assets (before waivers) 1.95%(5) 2.35% 4.13%(5)

Ratio of net investment loss to average net assets (0.62)%(5) (0.50)% (0.28)%(5)

Ratio of net investment loss to average net assets (before waivers) (1.47)%(5) (1.75)% (3.31)%(5)

Portfolio turnover rate(6) 34%(4) 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



Financial HighlightsBaird Small/Mid Cap Value Fund – Institutional Class

Six Months Ended Period Ended

June 30, 2020 Year Ended December 31, December 31, (Unaudited) 2019 2018 2017 2016 2015(1)

Per Share Data:Net asset value, beginning of period $12.32 $10.51 $12.43 $10.29 $ 9.52 $10.00______ ______ ______ ______ ______ ______


Net investment income(2) 0.06 0.12 0.04 0.07 0.13 0.02Net realized and unrealized

gains (losses) on investments (2.33) 1.80 (1.92) 2.14 0.72 (0.49)______ ______ ______ ______ ______ ______Total from

investment operations (2.27) 1.92 (1.88) 2.21 0.85 (0.47)______ ______ ______ ______ ______ ______Less distributions:

Distributions from net investment income — (0.11) (0.04) (0.07) (0.08) (0.01)

Distributions from net realized gains — — (0.00)(3) (0.00)(3) — —______ ______ ______ ______ ______ ______

Total distributions — (0.11) (0.04) (0.07) (0.08) (0.01)______ ______ ______ ______ ______ ______Net asset value, end of period $10.05 $12.32 $10.51 $12.43 $10.29 $ 9.52______ ______ ______ ______ ______ ____________ ______ ______ ______ ______ ______

Total return (18.43)%(4) 18.23% (15.11)% 21.48% 8.91% (4.66)%(4)


Ratio of expenses to average net assets 0.85%(5) 0.85% 0.94%(6) 0.95% 0.95% 0.95%(5)

Ratio of expenses to averagenet assets (before waivers) 1.61%(5) 1.59% 1.75% 1.91% 2.86% 6.88%(5)

Ratio of net investment income to average net assets 1.12%(5) 1.04% 0.34% 0.62% 1.35% 1.96%(5)

Ratio of net investment income (loss) to average net assets (before waivers) 0.36%(5) 0.30% (0.47)% (0.34)% (0.56)% (3.97)%(5)

Portfolio turnover rate(7) 42%(4) 37% 34% 60% 38% 15%(4)

(1) Inception was close of business on November 30, 2015.(2) Calculated using average shares outstanding during the period.(3) Amount is less than $0.005.(4) Not annualized.(5) Annualized.(6) 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%(7) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the



Financial HighlightsBaird Small/Mid Cap Value Fund – Investor Class


June 30, 2020 Year Ended December 31, December 31, (Unaudited) 2019 2018 2017 2016 2015(1)

Per Share Data:Net asset value, beginning of period $12.27 $10.48 $12.40 $10.28 $ 9.52 $10.00______ ______ ______ ______ ______ ______






Distributions from net realized gains — — (0.00)(3) (0.00)(3) — —______ ______ ______ ______ ______ ______

Total distributions — (0.08) (0.03) (0.05) (0.06) (0.01)______ ______ ______ ______ ______ ______Net asset value, end of period $10.00 $12.27 $10.48 $12.40 $10.28 $ 9.52______ ______ ______ ______ ______ ____________ ______ ______ ______ ______ ______

Total return (18.50)%(4) 17.86% (15.25)% 21.08% 8.64% (4.67)%(4)

Supplemental data and ratios:Net assets, end of period (thousands) $495.9 $560.4 $341.5 $86.1 $53.2 $19.0

Ratio of expenses to average net assets 1.10%(5) 1.10% 1.19%(6) 1.20% 1.20% 1.20%(5)

Ratio of expenses to average net assets (before waivers) 1.86%(5) 1.84% 2.00% 2.16% 3.11% 7.13%(5)

Ratio of net investment income to average net assets 0.87%(5) 0.79% 0.09% 0.37% 1.10% 1.71%(5)

Ratio of net investment income (loss) to average net assets (before waivers) 0.11%(5) 0.05% (0.72)% (0.59)% (0.81)% (4.22)%(5)

Portfolio turnover rate(7) 42%(4) 37% 34% 60% 38% 15%(4)

(1) Inception was close of business on November 30, 2015.(2) Calculated using average shares outstanding during the period.(3) Amount is less than $0.005.(4) Not annualized.(5) Annualized.(6) 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%.(7) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing between the



Financial HighlightsBaird SmallCap Value Fund – Institutional Class

Six Months Ended








Distributions from net realized gains — — (0.55) (0.43) — —______ ______ ______ ______ ______ ______

Total distributions — (0.11) (0.61) (0.52) (0.17) (0.08)______ ______ ______ ______ ______ ______Net asset value, end of period $13.10 $15.96 $13.58 $16.99 $14.83 $13.03______ ______ ______ ______ ______ ____________ ______ ______ ______ ______ ______

Total return (17.97)%(2) 18.40% (16.45)% 18.05% 15.11% (5.11)%


Ratio of expenses to average net assets 0.95%(3) 0.95% 1.00%(4) 1.00% 1.00% 1.00%


Ratio of net investment income to average net assets 0.45%(3) 0.87% 0.29% 0.61% 1.58% 0.79%

Ratio of net investment income (loss) to average net assets (before waivers) (0.15)%(3) 0.38% (0.09)% 0.26% 1.15% 0.28%


(1) Calculated using average shares outstanding during the period.(2) Not annualized.(3) Annualized.(4) Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the




Financial HighlightsBaird SmallCap Value Fund – Investor Class

Six Months Ended







Distributions from net investment income — (0.07) — (0.05) (0.11) (0.05)

Distributions from net realized gains — — (0.55) (0.43) — —______ ______ ______ ______ ______ ______

Total distributions — (0.07) (0.55) (0.48) (0.11) (0.05)______ ______ ______ ______ ______ ______Net asset value, end of period $13.09 $15.97 $13.58 $16.97 $14.81 $12.99______ ______ ______ ______ ______ ____________ ______ ______ ______ ______ ______

Total return (18.09)%(2) 18.19% (16.71)% 17.78% 14.84% (5.37)%


Ratio of expenses to average net assets 1.20%(3) 1.20% 1.25%(4) 1.25% 1.25% 1.25%


Ratio of net investment income to average net assets 0.20%(3) 0.62% 0.04% 0.36% 1.33% 0.54%

Ratio of net investment income (loss) to average net assets (before waivers) (0.40)%(3) 0.13% (0.34)% 0.01% 0.90% 0.03%


(1) Calculated using average shares outstanding during the period.(2) Not annualized.(3) Annualized.(4) Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the




Financial HighlightsChautauqua International Growth Fund – Institutional Class


June 30, 2020 Year Ended December 31, December 31, (Unaudited) 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) 0.03 0.30 0.06 0.04 0.00(3)

Net realized and unrealized gains (losses) on investments and foreign currency translation 0.56 2.42 (2.19) 3.41 (0.43)______ ______ ______ ______ ______

Total from investment operations 0.59 2.72 (2.13) 3.45 (0.43)______ ______ ______ ______ ______Less distributions:

Distributions from net investment income — (0.27) (0.06) (0.02) —

Distributions from net realized gains — — (0.23) (0.41) —______ ______ ______ ______ ______Total distributions — (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 $13.21 $12.62 $10.17 $12.59 $ 9.57______ ______ ______ ______ ____________ ______ ______ ______ ______

Total return 4.68%(4) 26.72% (16.94)% 36.11% (4.30)%(4)

Supplemental data and ratios:Net assets, end of period (millions) $204.5 $172.7 $85.4 $74.2 $14.8Ratio of expenses to average net assets 0.80%(5) 0.80% 0.94%(6) 0.95% 0.95%(5)

Ratio of expenses to average net assets (before waivers) 0.91%(5) 0.96% 1.07% 1.20% 2.32%(5)

Ratio of net investment income to average net assets 0.57%(5) 2.56% 0.51% 0.30% 0.06%(5)

Ratio of net investment income (loss) to average net assets (before waivers) 0.46%(5) 2.40% 0.38% 0.05% (1.31)%(5)

Portfolio turnover rate(7) 18%(4) 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) Annualized.(6) Blended rate. Pursuant to the Expense Cap/Reimbursement Agreement effective December 1, 2018, the




Financial HighlightsChautauqua International Growth Fund – Investor Class



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 0.55 2.41 (2.19) 3.41 (0.44)______ ______ ______ ______ ______

Total from investment operations 0.57 2.68 (2.16) 3.42 (0.45)______ ______ ______ ______ ______Less distributions:

Distributions from net investment income — (0.23) (0.03) (0.00)(3) —

Distributions from net realized gains — — (0.23) (0.41) —______ ______ ______ ______ ______Total distributions — (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 $13.17 $12.60 $10.15 $12.57 $ 9.56______ ______ ______ ______ ____________ ______ ______ ______ ______

Total return 4.52%(4) 26.42% (17.21)% 35.86% (4.40)%(4)



Ratio of net investment income (loss) to average net assets 0.32%(5) 2.31% 0.26% 0.05% (0.19)%(5)

Ratio of net investment income (loss) to average net assets (before waivers) 0.21%(5) 2.15% 0.13% (0.20)% (1.57)%(5)






Financial HighlightsChautauqua Global Growth Fund – Institutional Class



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) 0.01 0.22 0.00(3) (0.04) (0.01)Net realized and unrealized

gains (losses) on investments and foreign currency translation 0.91 3.18 (1.98) 3.85 0.10______ ______ ______ ______ ______

Total from investment operations 0.92 3.40 (1.98) 3.81 0.09______ ______ ______ ______ ______Less distributions:

Distributions from net investment income — (0.16) (0.00)(3) — —

Distributions from net realized gains — (0.06) (0.16) (0.47) —______ ______ ______ ______ ______Total distributions — (0.22) (0.16) (0.47) —______ ______ ______ ______ ______

Paid in capital from redemption fees 0.00(3) 0.00(3) 0.00(3) 0.00(3) —______ ______ ______ ______ ______Net asset value, end of period $15.39 $14.47 $11.29 $13.43 $10.09______ ______ ______ ______ ____________ ______ ______ ______ ______

Total return 6.36%(4) 30.14% (14.70)% 37.75% 0.90%(4)



Ratio of net investment income (loss) to average net assets 0.13%(5) 1.64% 0.01% (0.30)% (0.16)%(5)

Ratio of net investment income (loss) to average net assets (before waivers) (0.17)%(5) 1.21% (0.39)% (1.61)% (2.86)%(5)






Financial HighlightsChautauqua Global Growth Fund – Investor Class



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) (0.01) 0.19 (0.03) (0.07) (0.03)Net realized and unrealized

gains (losses) on investments and foreign currency translation 0.91 3.15 (1.96) 3.83 0.11______ ______ ______ ______ ______

Total from investment operations 0.90 3.34 (1.99) 3.76 0.08______ ______ ______ ______ ______Less distributions:

Distributions from net investment income — (0.14) — — —

Distributions from net realized gains — (0.06) (0.16) (0.47) —______ ______ ______ ______ ______Total distributions — (0.20) (0.16) (0.47) —______ ______ ______ ______ ______

Paid in capital from redemption fees 0.04 0.00(3) 0.00(3) 0.00(3) 0.00(3)______ ______ ______ ______ ______Net asset value, end of period $15.30 $14.36 $11.22 $13.37 $10.08______ ______ ______ ______ ____________ ______ ______ ______ ______

Total return 6.55%(4) 29.73% (14.86)% 37.29% 0.80%(4)



Ratio of net investment income (loss) to average net assets (0.12)%(5) 1.39% (0.24)% (0.55)% (0.41)%(5)

Ratio of net investment income (loss) to average net assets (before waivers) (0.42)%(5) 0.96% (0.64)% (1.86)% (3.11)%(5)






Notes to the Financial StatementsJune 30, 2020 (Unaudited)

1. OrganizationBaird Funds, Inc. (the “Corporation”) was incorporated on June 9, 2000, as a Wisconsin corporation and isregistered as an open-end management investment company under the Investment Company Act of 1940, asamended (the “1940 Act”). The accompanying financial statements include the Baird MidCap Fund, the BairdSmall/Mid Cap Growth Fund, the Baird Small/Mid Cap Value Fund, the Baird SmallCap Value Fund, theChautauqua International Growth Fund and the Chautauqua Global Growth Fund (each a “Fund” andcollectively the “Funds”), six of the sixteen active funds in the series comprising the Corporation. Pursuant to the1940 Act, the Funds are “diversified” series of the Corporation. The investment advisor to the Funds is RobertW. Baird & Co. Incorporated (“Baird” or the “Advisor”). The Funds are investment companies and thereforefollow 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, 2000Baird Small/Mid Cap Growth Fund October 31, 2018 October 31, 2018Baird Small/Mid Cap Value Fund November 30, 2015 November 30, 2015Baird SmallCap Value Fund May 1, 2012 May 1, 2012Chautauqua International Growth Fund April 15, 2016 April 15, 2016Chautauqua 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 sharesare 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 equitysecurities of small- and mid-capitalization companies.

The Baird Small/Mid Cap Value Fund seeks long-term capital appreciation through investments in adiversified 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 diversifiedportfolio of common stocks of companies with small market capitalizations.

The Chautauqua International Growth Fund seeks to provide long-term capital appreciation. The Fund investsprimarily 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 investsprimarily 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 fundcreates a presumption of control of the fund, under Section 2(a)(9) of the 1940 Act. On June 30, 2020,entities affiliated with the Advisor held 62% of the Baird Small/Mid Cap Growth Fund, 56% of the BairdSmall/Mid Cap Value Fund, 57% of the Baird SmallCap Value Fund, and 38% of the Chautauqua GlobalGrowth Fund. These shareholders included the Baird Foundation.

2. Significant Accounting PoliciesThe following is a summary of significant accounting policies consistently followed by the Funds in thepreparation of their financial statements. These policies are in conformity with accounting principles generallyaccepted in the United States of America (“GAAP”).


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 assetvalue, to value their portfolio securities using market quotations when they are “readily available.” Whenmarket quotations are not readily available (e.g., because there is no regular market quotation for suchsecurities, the market for such security is limited, the validity of quotations is questionable or, for debtsecurities, the Funds’ independent pricing service does not provide a price), the Board of Directors (the“Board”) of the Corporation must value the securities at “fair value determined in good faith.” The Boardhas delegated such responsibility to the Advisor pursuant to pricing policies and procedures that the Boardhas adopted and regularly reviews. In general, the “fair value” of a security means the price that would bereceived 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 ofthe 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: commonstocks that are listed on a securities exchange (other than NASDAQ) are valued at the last quoted saleprice. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Priceinformation on listed stocks is taken from the exchange where the security is primarily traded. Securitiesthat were not traded on the valuation date, as well as stocks that are not listed on an exchange, includingNASDAQ, are valued at the average of the current bid and ask price. Debt securities are valued at theirevaluated bid prices as provided by an independent pricing service using valuation methods that aredesigned to represent fair value, such as matrix pricing and other analytical pricing models, markettransactions and dealer quotations. Debt securities purchased with maturities of 60 days or less arevalued as described above unless an evaluated price is not available, in which case such security is valuedat acquisition cost, plus or minus any amortized discount or premium (“amortized cost”), or, if theAdvisor does not believe amortized cost is reflective of the fair value of the security, the security is pricedat fair value as described below. Investments in mutual funds, including money market funds, are valuedat their stated net asset value (“NAV”). Other assets and securities for which market quotations are notreadily available are valued at fair value as determined in good faith by the Advisor in accordance withprocedures 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 orprices obtained from alternative independent pricing services or, if broker quotes or prices fromalternative pricing services are unavailable or deemed to be unreliable, fair value will be determined by avaluation committee of the Advisor. In determining fair value, the valuation committee takes intoaccount 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 pricesfor the same security. Fair value pricing involves subjective judgments and there is no single standard fordetermining a security’s fair value. As a result, different mutual funds could reasonably arrive at adifferent fair value for the same security. It is possible that the fair value determined for a security ismaterially different from the value that could be realized upon the sale of that security or from the valuesthat other mutual funds may determine. The prices determined for any individual security on any givenday may vary significantly from the amount that can be obtained in an actual sale of that security, andthe 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 anindependent fair value pricing service to assist in valuing foreign securities in order to adjust for possiblechanges in value that may occur between the close of the foreign exchange and the time at which the Fundscalculate their NAVs. The fair value pricing service uses statistical data based on historical performance ofsecurities and markets, and other data in developing factors used to estimate fair value for that day.


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 foreigncompanies and foreign governments involves special risks and considerations not typically associatedwith investing in U.S. companies and the U.S. government. These risks include foreign currencyfluctuations and adverse political and economic developments. Moreover, securities of many foreigncompanies and foreign governments and their markets may be less liquid and their prices more volatilethan those of securities of comparable U.S. companies and the U.S. government. Occasionally, eventsthat affect these values and exchange rates may occur after the close of the exchange on which suchsecurities are traded. If such events materially affect the value of a Fund’s securities, these securities maybe valued at their fair value pursuant to procedures adopted by the Board.

c) Foreign Currency Translation – Portfolio securities and other assets and liabilities denominated inforeign currencies are translated into U.S. dollar amounts at date of valuation. Purchases and sales ofportfolio securities and income items denominated in foreign currencies are translated into U.S. dollaramounts 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 thetrade date to the settlement date of such transaction. The Funds do not isolate the portion of the resultsof operations resulting from changes in foreign exchange rates on investments from the fluctuationsarising from changes in market prices of securities held nor currency gains or losses realized between thetrade and settlement dates on securities transactions. Such fluctuations are included with the net realizedand unrealized gain or loss from investments. Net realized gain (loss) on foreign currency translationsinclude those gains and losses arising from the sale of foreign currencies, currency gains or losses realizedbetween the trade and settlement dates on foreign currency transactions, the differences between theamounts of dividends, and foreign withholding taxes recorded on a Fund’s books, and the U.S. dollarequivalent of the amounts actually received or paid. Net unrealized appreciation (depreciation) oninvestments 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 asprovided in subchapter M of the Internal Revenue Code and to distribute substantially all of theirtaxable 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 taxpositions taken or expected to be taken on the tax return for the six months ended June 30, 2020, or forany other tax years which are open for exam. As of June 30, 2020, open tax years include the tax yearsended December 31, 2016 through 2019. The Funds are not aware of any tax positions for which it isreasonably possible that the total amounts of unrecognized tax benefits will significantly change in thenext 12 months. The Funds recognize interest and penalties, if any, related to unrecognized tax benefitsas 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 netrealized capital gains, if any, are declared and paid at least annually. All distributions to shareholders arerecorded on the ex-dividend date. The book basis character of distributions may differ from their ultimatecharacterization for Federal income tax purposes. GAAP requires that permanent financial reporting andtax 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 thatclass of shares. Income, expenses and realized and unrealized gains and losses are allocated to the classesbased on their respective net assets. Expenses that are not directly attributable to a Fund are allocated amongthe Funds in the series in proportion to their respective assets or are divided equally amongst the Funds.


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 ofcontingent assets and liabilities at the date of the financial statements and the reported amounts of revenuesand 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. Dividendincome is recognized on the ex-dividend date net of withholding taxes, if any, and interest income isrecognized on an accrual basis. Withholding taxes on foreign dividends have been accounted for inaccordance 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 beclassified as dividends, capital gains or return of capital.

i) Guarantees and Indemnifications – In the normal course of business, the Funds enter into contractswith service providers that contain general indemnification clauses. The Funds’ maximum exposureunder these arrangements is unknown and would involve future claims against the Funds that have notyet 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”) hasdisrupted economic markets and the prolonged economic impact is uncertain. The ultimate economicfallout from the pandemic, and the long-term impact on economies, markets, industries and individualissuers, are not known. The operational and financial performance of the issuers of securities in whichthe 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 TransactionsThe following table summarizes the capital share transactions of each Fund for the past two fiscal periods:

Baird MidCap FundSix Months Ended Year Ended

June 30, 2020 December 31, 2019________________________ ________________________Institutional Class Shares Shares Amount Shares Amount_________ ___________ _________ ___________Shares sold 10,706,107 $ 226,798,937 28,582,666 $ 617,683,654Shares issued to shareholders in reinvestment of distributions — — 3,751,830 85,204,069

Shares redeemed (19,068,677) (417,265,571) (28,056,428) (626,508,980)__________ ____________ __________ ____________Net increase (decrease) (8,362,570) $(190,466,634) 4,278,068 $ 76,378,743____________ ________________________ ____________Shares Outstanding:Beginning of period 79,737,647 75,459,579__________ __________End of period 71,375,077 79,737,647__________ ____________________ __________


3. Capital Share Transactions (cont.)Baird MidCap Fund (cont.)

Six Months Ended Year EndedJune 30, 2020 December 31, 2019________________________ ________________________

Investor Class Shares Shares Amount Shares Amount_________ ___________ _________ ___________Shares sold 1,778,343 $ 34,927,196 2,001,794 $ 41,249,843Shares issued to shareholders

in reinvestment of distributions — — 346,621 7,400,350Shares redeemed (1,282,836) (24,290,070) (1,156,037) (24,035,320)_________ ____________ _________ ____________Net increase 495,507 $ 10,637,126 1,192,378 $ 24,614,873____________ ________________________ ____________Shares Outstanding:Beginning of period 6,889,569 5,697,191_________ _________End of period 7,385,076 6,889,569_________ __________________ _________Total net increase (decrease) $(179,829,508) $100,993,616____________ ________________________ ____________

Baird Small/Mid Cap Growth FundSix Months Ended Year Ended

June 30, 2020 December 31, 2019________________________ ________________________Institutional Class Shares Shares Amount Shares Amount_________ ___________ _________ ___________Shares sold 692,693 $ 8,355,620 857,808 $ 9,686,310Shares redeemed (149,055) (1,704,136) (179,809) (2,102,209)_________ __________ _______ __________Net increase 543,638 $ 6,651,484 677,999 $ 7,584,101__________ ____________________ __________Shares Outstanding:Beginning of period 1,491,956 813,957_________ _________End of period 2,035,594 1,491,956_________ __________________ _________


Investor Class Shares Shares Amount Shares Amount_________ ___________ _________ ___________Shares sold 11,146 $ 130,750 22,746 $ 255,577Shares redeemed (3,246) (38,482) (225) (2,646)_______ _________ _______ _________Net increase 7,900 $ 92,268 22,521 $ 252,931_________ __________________ _________Shares Outstanding:Beginning of period 23,521 1,000______ ______End of period 31,421 23,521______ ____________ ______Total net increase $6,743,752 $7,837,032_________ __________________ _________Baird Small/Mid Cap Value Fund


Institutional Class Shares Shares Amount Shares Amount_________ ___________ _________ ___________Shares sold 298,693 $ 3,132,331 513,710 $ 6,004,940Shares issued to shareholdersin reinvestment of distributions — — 13,395 164,491

Shares redeemed (312,213) (3,355,569) (175,075) (2,077,538)________ __________ ________ __________Net increase (decrease) (13,520) $ (223,238) 352,030 $ 4,091,893__________ ____________________ __________Shares Outstanding:Beginning of period 1,974,781 1,622,751________ ________End of period 1,961,261 1,974,781________ ________________ ________


3. Capital Share Transactions (cont.)Baird Small/Mid Cap Value Fund (cont.)


Investor Class Shares Shares Amount Shares Amount_________ ___________ _________ ___________Shares sold 5,111 $ 53,354 14,425 $ 166,971Shares issued to shareholders

in reinvestment of distributions — — 263 3,216Shares redeemed (1,202) (13,507) (1,618) (19,542)_____ ________ ______ _________Net increase 3,909 $ 39,847 13,070 $ 150,645_____ ________ ______ ______________ ________ ______ _________Shares Outstanding:Beginning of period 45,657 32,587______ ______End of period 49,566 45,657______ ____________ ______Total net increase (decrease) $(183,391) $4,242,538________ _________________ _________

Baird SmallCap Value FundSix Months Ended Year Ended

June 30, 2020 December 31, 2019________________________ ________________________Institutional Class Shares Shares Amount Shares Amount_________ ___________ _________ ___________Shares sold 123,364 $ 1,733,473 265,753 $ 4,013,663Shares issued to shareholders

in reinvestment of distributions — — 11,374 181,421Shares redeemed (404,691) (5,545,965) (330,733) (5,030,908)________ __________ ________ __________Net decrease (281,327) $(3,812,492) (53,606) $ (835,824)__________ ____________________ __________Shares Outstanding:Beginning of period 2,064,404 2,118,010________ ________End of period 1,783,077 2,064,404________ ________________ ________


Investor Class Shares Shares Amount Shares Amount_________ ___________ _________ ___________Shares sold 7,312 $ 115,019 5,551 $ 84,039Shares issued to shareholders in reinvestment of distributions — — 178 2,846

Shares redeemed (18,178) (241,850) (6,225) (93,837)_______ __________ _______ ________Net decrease (10,866) $ (126,831) (496) $ (6,952)__________ __________________ ________Shares Outstanding:Beginning of period 55,355 55,851_______ _______End of period 44,489 55,355_______ ______________ _______Total net decrease $(3,939,323) $(842,776)__________ __________________ ________


3. Capital Share Transactions (cont.)Chautauqua International Growth Fund


Institutional Class Shares Shares Amount Shares Amount_________ ___________ _________ ___________Shares sold 3,037,706 $ 35,086,801 6,564,998(1) $ 76,704,816(1)

Shares issued to shareholders in reinvestment of distributions — — 227,632 2,881,816

Shares redeemed (1,237,680) (14,136,385) (1,503,822) (17,898,951)Redemption fees — 11,658 — 32,968________ ___________ _________ ___________Net increase 1,800,026 $ 20,962,074 5,288,808 $ 61,720,649___________ ______________________ ___________Shares Outstanding:Beginning of period 13,684,014 8,395,206_________ _________End of period 15,484,040 13,684,014_________ __________________ _________


Investor Class Shares Shares Amount Shares Amount_________ ___________ _________ ___________Shares sold 9,766 $ 120,754 30,595 $ 368,522Shares issued to shareholders

in reinvestment of distributions — — 1,577 19,935Shares redeemed (9,642) (106,992) (124,988) (1,465,249)Redemption fees — 275 — 5_______ __________ _______ __________Net increase (decrease) 124 $ 14,037 (92,816) $ (1,076,787)__________ ____________________ __________Shares Outstanding:Beginning of period 118,654 211,470_______ _______End of period 118,778 118,654_______ ______________ _______Total net increase $20,976,111 $60,643,862__________ ____________________ __________(1) Includes purchase in-kind transactions. See additional information contained in this Note.

Chautauqua Global Growth FundSix Months Ended Year Ended

June 30, 2020 December 31, 2019________________________ ________________________Institutional Class Shares Shares Amount Shares Amount_________ ___________ _________ ___________Shares sold 1,843,428 $25,804,684 1,067,813 $14,402,805Shares issued to shareholders in reinvestment of distributions — — 45,894 667,696

Shares redeemed (469,896) (6,443,443) (516,819) (6,920,288)Redemption fees — 21,293 — 3,644________ ___________ ________ ___________Net increase 1,373,532 $19,382,534 596,888 $ 8,153,857___________ ______________________ ___________Shares Outstanding:Beginning of period 3,858,531 3,261,643________ ________End of period 5,232,063 3,858,531________ ________________ ________


3. Capital Share Transactions (cont.)Chautauqua Global Growth Fund (cont.) Six Months Ended Year Ended

June 30, 2020 December 31, 2019________________________ ________________________Investor Class Shares Shares Amount Shares Amount_________ ___________ _________ ___________Shares sold 86,400 $ 1,252,759 68,911 $ 930,554Shares issued to shareholders

in reinvestment of distributions — — 1,472 21,240Shares redeemed (34,023) (444,229) (22,141) (302,224)Redemption fees — 4,949 — 78_______ ___________ _______ __________Net increase 52,377 $ 813,479 48,242 $ 649,648___________ _____________________ __________Shares Outstanding:Beginning of period 111,878 63,636_______ _______End of period 164,255 111,878_______ ______________ _______Total net increase $20,196,013 $8,803,505___________ _____________________ __________

During the year ended December 31, 2019, Chautauqua International Growth Fund satisfied a purchasein-kind request made by a large institutional shareholder by transferring cash and securities into the Fund. Thetransfer was effected in accordance with policies and procedures approved by the Board. Considerationreceived and shares sold were as follows:

Year Ended December 31, 2019Value 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 InformationDuring the six months ended June 30, 2020, purchases and sales of investment securities (excludingshort-term investments) were as follows:

Baird Baird Baird Baird Chautauqua ChautauquaMidCap Small/Mid Cap Small/Mid Cap SmallCap International Global Growth

Fund Growth Fund Value Fund Value Fund Growth Fund Fund________ ______________ ______________ __________ ____________ _____________Purchases: $590,305,292 $13,859,718 $8,292,663 $ 6,178,945 $59,435,058 $30,875,414Sales: $895,111,731 $ 7,117,179 $8,857,662 $10,352,747 $31,212,914 $10,073,516

The Funds did not purchase or sell U.S. Government securities during the six months ended June 30, 2020.

As of December 31, 2019, the components of accumulated earnings (losses) for income tax purposes were as follows:

Baird Baird BairdMidCap Small/Mid Cap Small/Mid Cap

Fund Growth Fund Value Fund_________ ____________ ____________Cost of investments $1,422,125,460 $14,916,375 $21,247,853_____________ __________ _______________________ __________ __________Gross unrealized appreciation 716,351,818 3,057,523 4,247,424Gross unrealized depreciation (27,384,098) (323,297) (655,314)_____________ __________ __________Net unrealized appreciation 688,967,720 2,734,226 3,592,110Undistributed ordinary income — — 14,339Undistributed long-term capital gains 5,554,268 23,711 —_____________ __________ __________Distributable earnings 5,554,268 23,711 14,339Other accumulated losses (2,873,939) — (410,836)_____________ __________ __________Total distributable earnings $ 691,648,049 $ 2,757,937 $ 3,195,613_____________ __________ _______________________ __________ __________


4. Investment Transactions and Income Tax Information (cont.)Baird Chautauqua Chautauqua

SmallCap International GlobalValue Fund Growth Fund Growth Fund_________ ___________ ___________

Cost of investments $27,324,147 $151,026,844 $49,495,266__________ ____________ ____________________ ____________ __________Gross unrealized appreciation 7,270,234 31,394,411 10,528,062Gross unrealized depreciation (732,835) (7,055,527) (3,268,837)__________ ____________ __________Net unrealized appreciation 6,537,399 24,338,884 7,259,225Undistributed ordinary income 49,379 49,848 179,837Undistributed long-term capital gains 1,547,362 — —__________ ____________ __________Distributable earnings 1,596,741 49,848 179,837Other accumulated losses — (6,641,894) (265,154)__________ ____________ __________Total distributable earnings $ 8,134,140 $ 17,746,838 $ 7,173,908__________ ____________ ____________________ ____________ __________

The difference between book-basis and tax-basis unrealized appreciation is attributable primarily to the taxdeferral of losses on wash sales.

Additionally, U.S. generally accepted accounting principles require that certain components of net assetsrelating to permanent differences be reclassified between financial and tax reporting. These reclassifications areprimarily due to differing treatments for equalization accounting for tax purposes, the disallowance of a netoperating loss, redesignation of dividends, capital gain distributions received from underlying REIT securities,and the reclassification of foreign currency gains and losses. These reclassifications have no effect on net assetsor net asset value per share.

Distributions to Shareholders

Each Fund generally pays dividends from net investment income and distributes net realized capital gains, ifany, at least annually. Income and capital gain distributions are determined in accordance with income taxregulations, which may differ from GAAP. Certain Funds also utilize earnings and profits distributed toshareholders on redemptions of shares as part of the dividends paid deduction.

During the six months ended June 30, 2020, the Funds did not pay any distributions. During the year endedDecember 31, 2019, the Funds paid the following distributions:

Year Ended December 31, 2019_______________________________________Ordinary Long-Term

Fund Income Capital Gains Total_____ ________ ____________ _____Baird MidCap Fund $4,716,248 $111,977,504 $116,693,752Baird Small/Mid Cap Value Fund 211,978 — 211,978Baird SmallCap Value Fund 227,402 — 227,402Chautauqua International Growth Fund 3,658,929 — 3,658,929Chautauqua 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 CodeSection 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capitalgain to zero for the tax year ended December 31, 2019.

At December 31, 2019, the following Fund deferred, on a tax basis, post-October capital losses:

Fund Loss Deferral_____ ___________

Baird MidCap Fund $2,873,939


4. Investment Transactions and Income Tax Information (cont.)At December 31, 2019, 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 $410,836 $ — Indefinite N/AChautauqua International Growth Fund — 6,641,138 N/A IndefiniteChautauqua Global Growth Fund — 270,938 N/A Indefinite

5. Investment Advisory and Other AgreementsThe Funds have entered into an Investment Advisory Agreement with Baird for the provision of investmentadvisory 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%

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 expenseand the fees and expenses incurred by the Funds in connection with the Funds’ investments in otherinvestment companies (to the extent, in the aggregate, such fees and expenses on an annual basis exceed0.0049% of the Fund’s average daily net assets), but excluding taxes, brokerage commissions and extraordinaryexpenses, do not exceed the following annual percentages of the average daily net assets attributable to theFunds’ Institutional Class and Investor Class shares:

Institutional InvestorFund 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, 2021.

To the extent that the Advisor reimburses or absorbs fees and expenses, it may seek payment of such amountsfor three years after the year in which expenses were reimbursed or absorbed. A Fund will make no suchpayment, however, if its total annual operating expenses exceed the expense limits in effect at the time theexpenses were reimbursed or at the time these payments are proposed.

Six MonthsEnded Fiscal Year Ended December 31,_____________________________

June 30, 2020 2019 2018 2017Subject to Recovery on or before: ____________ ____ _____ ____Fund 2023 2022 2021 2020____Baird Small/Mid Cap Growth Fund $91,319 $160,643 $ 32,277(a) N/ABaird Small/Mid Cap Value Fund 79,901 164,099 151,826 $66,138Baird SmallCap Value Fund 79,297 160,963 135,562 58,731Chautauqua International Growth Fund 97,180 230,596 116,439 74,853Chautauqua Global Growth Fund 98,603 206,779 155,834 85,936(a) For the period from close of business on October 31, 2018 (inception date) through December 31, 2018.


5. Investment Advisory and Other Agreements (cont.)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 custodianfor the Funds.

Robert W. Baird & Co. Incorporated (the “Distributor”) is the sole distributor of the Funds pursuant to adistribution agreement.

No commissions were earned by the Distributor for services rendered as a registered broker-dealer in securitiestransactions for the six months ended June 30, 2020 for the Funds.

Certain officers and employees of the Advisor are also officers of the Funds.

6. Line of CreditThe Corporation maintains an uncommitted line of credit (“LOC”) with U.S. Bank to provide the sixteenFunds comprising the Corporation a temporary liquidity source to meet unanticipated redemptions. The LOCis 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 amountborrowed) of the respective Fund, or $600,000,000 of total borrowings for the Funds comprising theCorporation, whichever is less. U.S. Bank charges interest at the U.S. Prime Rate less 2%, but in no event lessthan a net rate of 1% per annum. As of June 30, 2020, the Prime Rate was 3.25%. The LOC matures onMay 24, 2021, unless renewed. The Corporation has authorized U.S. Bank to charge any of the accounts ofthe borrowing Fund subject to the agreement for any missed payments.

During the six months ended June 30, 2020, the Funds borrowed from the LOC as follows:

Amount Interest Charges BorrowingFund 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 six months ended June 30, 2020 nor were any other borrowingsoutstanding under the LOC as of June 30, 2020.

7. Distribution and Shareholder Service PlanThe Funds have adopted a distribution and shareholder service plan (the “Plan”) pursuant to Rule 12b-1under the 1940 Act. The Plan allows the Funds to compensate the Distributor for the costs incurred indistributing the Funds’ Investor Class Shares, including amounts paid to brokers or dealers, at an annual rateof 0.25% of the average daily net assets of the Funds’ Investor Class Shares.

For the six months ended June 30, 2020, the Funds incurred fees pursuant to the Plan as follows:

Baird MidCap Fund $185,629Baird Small/Mid Cap Growth Fund 436Baird Small/Mid Cap Value Fund 608Baird SmallCap Value Fund 904Chautauqua International Growth Fund 1,797Chautauqua Global Growth Fund 2,384

8. Redemption FeesA redemption fee of 2.00% will be assessed on Institutional and Investor Class shares of the ChautauquaInternational Growth Fund and Chautauqua Global Growth Fund if redeemed (including in connection with anexchange) 90 days or less from their date of purchase, determined on a first-in, first-out (“FIFO”) basis. Theredemption fee is paid directly to the Funds and is designed to offset brokerage commissions, market impact andother costs associated with fluctuations in Fund asset levels and cash flow caused by short-term shareholder trading.


8. Redemption Fees (cont.)For the six months ended June 30, 2020, the Funds charged redemption fees as follows:

Chautauqua International Growth Fund $11,933Chautauqua Global Growth Fund $26,242

The Baird MidCap Fund, Baird Small/Mid Cap Growth Fund, Baird Small/Mid Cap Value Fund and BairdSmallCap Value Fund do not charge redemption fees.

9. Subsequent EventsIn preparing these financial statements, management has evaluated events after June 30, 2020. There were nosubsequent events since June 30, 2020, through the date the financial statements were issued that wouldwarrant adjustment to or additional disclosure in these financial statements.

Statement Regarding Liquidity RiskManagement Program (Unaudited)

In accordance with Rule 22e-4 under the Investment Company Act of 1940 (the “Rule”), Baird Funds, Inc. (the“Company”) has adopted and implemented a liquidity risk management program (the “Program”). The Programseeks to promote effective liquidity risk management for each series of the Company (each a “Fund” andcollectively, the “Funds”) and to protect Fund shareholders from dilution of their interests. The Board of Directors(the “Board”) of the Company has appointed Robert W. Baird & Co. Incorporated (“Baird”), the Funds’investment adviser, as the administrator of the Program. Baird has further delegated administration of the Programto its Liquidity Risk Management Committee (the “Committee”), consisting of officers of the Funds and seniorportfolio managers and the chief risk officer of Baird. The Program requires the Committee to provide an annualreport to the Board regarding the adequacy and effectiveness of the Program, including the operation of eachFund’s highly liquid investment minimum (“HLIM”), if applicable, and any material changes to the Program.

On February 19, 2020, the Board reviewed the Committee’s annual written report (the “Report”) for theperiod June 1, 2019 to December 31, 2019 (the “review period”). The Report provided a summary of theCommittee’s assessment of each Fund’s liquidity risk, which is the risk that a Fund could not meet requests toredeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund.The Committee’s assessment considered each Fund’s liquidity risk under both normal and reasonablyforeseeable stressed market conditions using certain factors required by the Rule and the Program, to theextent deemed appropriate by the Committee. The Report stated that the Funds have retained ICE DataServices (“ICE”), a third party vendor, to provide a liquidity risk classification specified by the Rule (highlyliquid, moderately liquid, less liquid or illiquid) for each portfolio investment held by the Funds, except withrespect to any investments that are unclassified by ICE or that are classified by ICE but challenged by Baird,for which classifications are provided by the Committee. The Report also noted that each Fund primarily heldinvestments that were classified as highly liquid during the review period and that each Fund’s portfolio isexpected to continue to primarily hold highly liquid investments. Thus, the Committee concluded in theReport that each Fund is considered a “primarily highly liquid fund” (as defined in the Rule and Program) andeach Fund can therefore rely on the exclusion in the Rule from the requirements to establish an HLIM and toadopt policies and procedures for responding to a HLIM shortfall. The Report further noted that none of theFunds exceeded the 15% limitation on illiquid investments during the review period and the Company hasestablished procedures to file the Funds’ Forms N-PORT on a timely basis. The Report stated that, whilecertain clarifying changes had been made to the Program document, no material changes had been made tothe Program since the Board’s last approval of the Program.

The Report noted no significant liquidity events or risks impacting any of the Funds. The Committeeconcluded in the Report that the Program is adequately designed, has been effectively implemented and isoperating effectively to manage the liquidity risk of each Fund.

Additional Information (Unaudited)

Proxy VotingA description of the policies and procedures that the Funds use to determine how to vote proxies relating toportfolio securities is available without charge, upon request, by calling toll free, 1-866-44BAIRD, byaccessing 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 withoutcharge, upon request, by calling toll free, 1-866-44BAIRD, by accessing the Funds’ website atwww.bairdfunds.com or by accessing the SEC’s website at www.sec.gov.

Portfolio Holdings DisclosureThe Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of eachfiscal year on Part F of Form N-PORT. The Funds’ filings on Part F of Form N-PORT are available on theSEC’s website at www.sec.gov. The Funds’ Form N-PORT reports may also be obtained by calling toll-free1-866-44BAIRD.

Baird Funds, Inc.c/o U.S. Bancorp Fund Services, LLCP.O. Box 701Milwaukee, WI 53201-07011-866-44BAIRD

Board of DirectorsJohn W. FeldtDarren R. JacksonCory L. NettlesMarlyn J. Spear (Chair)Frederick P. Stratton, Jr.

Investment Advisor and DistributorRobert W. Baird & Co. Incorporated777 East Wisconsin AvenueMilwaukee, WI 53202

Administrator and Transfer AgentU.S. Bancorp Fund Services, LLCP.O. Box 701615 East Michigan StreetMilwaukee, WI 53202

CustodianU.S. Bank, N.A.1555 N. RiverCenter Drive, Suite 302Milwaukee, WI 53212

Legal CounselGodfrey & Kahn, S.C.833 East Michigan Street, Suite 1800Milwaukee, WI 53202

Independent Registered Public Accounting FirmCohen & Company, Ltd.342 North Water Street, Suite 830Milwaukee, WI 53202

Semi-Annual Report – Baird Funds · A June 30, 2019 summary of the Fund’s top 10 holdings and...

Documents

Transcript of Semi-Annual Report – Baird Funds · A June 30, 2019 summary of the Fund’s top 10 holdings and...