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BAIRD ADJUSTABLE-RATE INCOME FUND RATED 'AAA/S-1' UNDER NEW FITCH SYSTEM -- FITCH FINANCIAL WIRE --

 NEW YORK, June 4 /PRNewswire/ -- A new Fitch rating system, which measures the future stability of a bond fund's total return, is launched with an initial `AAA/S-1' rating on Baird Adjustable Rate Income Fund.
 The `S-1' indicates the $50 million bond fund has the highest stability of total returns. The `AAA' level of credit quality applies to the fund's underlying assets, its management, and operations.
 On average, the fund's market risk is comparable to 1-3 year U.S. Treasury obligations. Value-to-risk is viewed as positive. As of April 6, 1993, the portfolio had an option-adjusted spread of 91 basis points (bps). In fourth-quarter 1992, the fund's total return was 34.6 bps, surpassing the Lehman Adjustable Rate Mortgage Index and the Lehman 1-3 Year Government Index.
 The fund's investment strategy focuses on high credit quality adjustable-rate assets. With the emphasis on maintaining investment stability over maximizing yield, the fund maintains a defensive posture. By diversifying its holdings with 37 percent short-term indexed floaters and 63 percent intermediate-term Treasury indexed floaters, the fund actively manages duration while collecting higher income from the floaters off longer-term indices.
 Fitch's new fund ratings are aimed at investors seeking an independent view of how bond portfolios are expected to perform. Unlike fund performance data, which track past results, Fitch stability ratings address the future. Investors can use the ratings to help select funds to meet their risk preferences. The ratings indicate a fund's sensitivity to changes in interest rates and other market conditions.
 Stability ratings measure the stability of investment return and potential price fluctuation for the portfolio. Stability ratings are numerical: 1 for stable, 2 variable, and 3 volatile, preceded by S, M, and L for short, medium, and long-term portfolios. Fitch reviews a fund's portfolio composition reports monthly and re-evaluates each rating quarterly to reflect changes in portfolio composition, management policies, and investment environment.
 -0- 6/4/93
 /CONTACT: Michael Salm, 212-908-0636, or John Schiavetta, 212-908-0619, both of Fitch/


CO: Fitch Investors Service; Baird Adjustable Rate Income Fund ST: IN: FIN SU: RTG

CK -- NY029 -- 5416 06/04/93 11:51 EDT
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Date:Jun 4, 1993
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