Income from U.S. Government Obligations

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1 Baird s Enclosed is the 2017 Tax Form for your account with the Baird s. The Form provides information on any applicable 2017 distributions and proceeds from redemptions. Please note that all information contained in this ment has been provided to the Internal Revenue Service. In addition to the tax information provided on your enclosed Tax Form, below is supplemental information to assist you with the preparation of your 2017 income tax returns. Please consult your tax advisor for the specific application of any items below relating to the preparation of your tax returns. Income from U.S. Government Obligations Some states do not tax their residents on income from a mutual fund that is earned from U.S. Government Obligations. The following table shows the percentage of total ordinary income dividends shown in Box 1 of your 2017 Tax Form that were attributable to interest earned from direct U.S. Government Obligations: % of Ordinary Income Attributable to Direct U.S. Govt. Name Obligation (see Box 1) Baird Aggregate Bond Baird Core Plus Bond Baird Bond Baird Quality Baird Short-Term Bond Baird Large Cap Baird Mid Cap Baird Small Cap Value Baird Ultra Short Bond Baird Core Baird Short-Term Baird Small/Mid Cap Value Chautauqua International Growth Chautauqua Global Growth 14.47% 9.26% 22.09% 13.02% 16.75% Depending on your state s personal income tax laws, you may be entitled to declare the above portion of your 2017 ordinary income dividends (Box 1) as tax-exempt income on your state personal income tax return. However, some states do not allow the pass through of this exempt-interest income unless the percentage earned from U.S. Government Obligations exceeds certain thresholds or unless other requirements are met. Please consult your tax advisor or state authorities if you have any questions regarding the percentage of income you can exclude when calculating your state income tax.

2 Baird s Income by or U.S. Territory income earned on a state-by-state basis for the Baird Quality. Of course, the tax treatment of income paid by the portfolio depends upon the laws of your state or local authority. If you have any questions about the local tax treatment, we recommend you consult your tax advisor. Quality Quality Alabama 0.13% Montana 0.04% Alaska Nebraska 0.10% Arizona 0.17% Nevada Arkansas 0.40% New Hampshire 0.35% California 6.38% New Jersey 1.42% Colorado 5.74% New Mexico 0.41% Connecticut 0.55% New York 5.35% Delaware 0.01% North Carolina 2.60% District of Columbia 0.09% North Dakota 0.43% Florida 10.47% Ohio 2.39% Georgia 2.19% Oklahoma Guam Oregon 0.73% Hawaii Pennsylvania 1.48% Idaho Puerto Rico 1.31% Illinois 12.72% Rhode Island 0.53% Indiana 0.63% South Carolina 1.64% Iowa 0.61% South Dakota 0.06% Kansas 0.39% Tennessee 0.72% Kentucky 0.01% Texas 19.69% Louisiana 6.64% Utah 1.03% Maine Vermont 0.10% Maryland 0.20% Virginia 0.43% Massachusetts 1.98% Washington 3.66% Michigan 2.67% West Virginia 0.02% Minnesota 1.30% Wisconsin 1.49% Mississippi 0.19% Wyoming Missouri 0.55%

3 Baird s Income by or U.S. Territory income earned on a state-by-state basis for the Baird Core. Of course, the tax treatment of income paid by the portfolio depends upon the laws of your state or local authority. If you have any questions about the local tax treatment, we recommend you consult your tax advisor. Baird Core Baird Core Alabama 2.23% Montana 1.14% Alaska 0.99% Nebraska 1.16% Arizona 2.65% Nevada 1.18% Arkansas 2.38% New Hampshire California 6.54% New Jersey 3.07% Colorado 5.87% New Mexico 0.29% Connecticut 0.76% New York 4.11% Delaware North Carolina 0.59% District of Columbia 0.84% North Dakota 2.20% Florida 3.91% Ohio 3.69% Georgia 2.22% Oklahoma 0.43% Guam Oregon Hawaii Pennsylvania 2.27% Idaho Puerto Rico 0.51% Illinois 13.35% Rhode Island 0.39% Indiana 1.49% South Carolina 1.18% Iowa 1.57% South Dakota 0.33% Kansas 1.03% Tennessee 1.56% Kentucky 0.16% Texas 8.28% Louisiana 0.47% Utah 2.01% Maine 0.80% Vermont 0.12% Maryland Virginia 0.16% Massachusetts 1.35% Washington 1.69% Michigan 3.23% West Virginia Minnesota 1.97% Wisconsin 6.11% Mississippi 1.19% Wyoming 0.01% Missouri 2.27% Virgin Islands 0.25%

4 Baird s Income by or U.S. Territory income earned on a state-by-state basis for the Baird Short-Term. Of course, the tax treatment of income paid by the portfolio depends upon the laws of your state or local authority. If you have any questions about the local tax treatment, we recommend you consult your tax advisor. Baird Short- Term Baird Short- Term Alabama 0.81% Montana Alaska 0.08% Nebraska 0.30% Arizona 1.76% Nevada 0.74% Arkansas 3.15% New Hampshire California 5.68% New Jersey 3.55% Colorado 3.79% New Mexico 0.24% Connecticut 0.99% New York 4.98% Delaware North Carolina 3.69% District of Columbia 0.42% North Dakota 1.88% Florida 5.47% Ohio 1.64% Georgia 2.85% Oklahoma 0.16% Guam Oregon 0.42% Hawaii Pennsylvania 5.40% Idaho 0.02% Puerto Rico 0.33% Illinois 13.43% Rhode Island 0.78% Indiana 2.39% South Carolina 1.28% Iowa 2.18% South Dakota Kansas 0.99% Tennessee 1.39% Kentucky 0.58% Texas 8.12% Louisiana 1.81% Utah 0.19% Maine 0.52% Vermont 0.19% Maryland 0.07% Virginia 0.23% Massachusetts 2.57% Washington 0.35% Michigan 3.17% West Virginia 0.03% Minnesota 2.40% Wisconsin 4.04% Mississippi 0.42% Wyoming Missouri 4.52% Virgin Islands

5 Baird s Income from Foreign Sources Subject to Foreign Tax Credit: For the year ended December 31, 2017, the Chautauqua Global Growth and Chautauqua International Growth earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders pursuant to Section 853 of the Internal Revenue Code. See below to determine the foreign taxes paid and the foreign source income. 1) The shareholder s portion of foreign taxes paid (see Box 6 of your enclosed Tax Form for this information). 2) The shareholder s amount of foreign source gross income. This amount can be calculated as a percentage of your ordinary dividend shown in Box 1 of your 2017 Tax Form. Please see the information below for your foreign source gross income amount. Name Foreign Source Gross Income (Use % listed below and apply to Ordinary Income as shown in Box 1 to compute) Chautauqua Global Growth 83.63% Chautauqua International Growth 94.69%