EXPENSE CAP/REIMBURSEMENT AGREEMENT
This Agreement is entered into as of the 1st day of February, 2018 between Xxxxxx X. Xxxxx & Co. Incorporated (the “Advisor”) and Baird Funds, Inc. (the “Corporation”), on behalf of the Xxxxx XxxXxx Fund (the “MidCap Fund”), the Xxxxx SmallCap Value Fund (the “SmallCap Value Fund”), the Xxxxx Small/Mid Cap Value Fund (the “XXXX Value Fund”), the Chautauqua Global Growth Fund (the “Chautauqua Global Fund”), and the Chautauqua International Growth Fund (the “Chautauqua International Fund”) ; the MidCap Fund, XXXX Value Fund, SmallCap Value Fund, Chautauqua Global Fund and Chautauqua International Fund are hereinafter referred to collectively as the “Funds” and individually as a “Fund”).
WHEREAS, the Advisor desires to contractually agree to waive a portion of its advisory fee or reimburse the Funds’ operating expenses to ensure that the Funds’ total operating expenses do not exceed the levels described below.
NOW THEREFORE, the parties agree as follows:
The Advisor agrees that, for the term of this Agreement, it will reduce its compensation as provided for in the Investment Advisor Agreements between the Corporation on behalf of the Funds and the Advisor and/or assume expenses for the Fund to the extent necessary to ensure that each Fund’s total operating expenses, including interest expense and the fees and expenses incurred by a Fund in connection with a Fund’s investments in other investment companies, but excluding taxes, brokerage commissions and extraordinary expenses, do not exceed the following annual percentages of the average daily net assets attributable to the Fund’s Institutional Class and Investor Class shares:
|
|
Institutional Class
|
Investor Class
|
|
|
|
|
|
|
|
MidCap Fund
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0.85%
|
1.10%
|
|
|
XXXX Value Fund
|
0.95%
|
1.20%
|
|
|
SmallCap Value Fund
|
1.00%
|
1.25%
|
|
|
Chautauqua Global Fund
|
0.95%
|
1.20%
|
|
| Chautauqua International Fund | 0.95% | 1.20% |
The Advisor shall be entitled to recoup such amounts from a Fund for a period of up to three (3) years from the date the Advisor reduced its compensation and/or assumed expenses for that Fund, provided that the expense ratios in those future years are less than the limits specified herein and less than the limits in effect in those future years.
This Agreement shall continue in effect through April 30, 2019. Thereafter this Agreement shall automatically continue thereafter for successive renewal terms of one year each, unless either party notifies the other party of its desire to terminate this Agreement prior to such renewal.
XXXXXX X. XXXXX & CO. INCORPORATED
By: /s/ Reik Read
Reik Read
Managing Director
BAIRD FUNDS, INC. (on behalf of the MidCap Fund, XXXX
Value Fund, SmallCap Value Fund, Chautauqua Global Fund
and Chautauqua International Fund)
By:/s/Xxxxx Xxxxxxx
Xxxxx Xxxxxxx
Vice President
