Baird Private Wealth Management

Baird Private Wealth Management

Wrap Fee Program Brochure March 24, 2021

Discretionary Programs

ALIGN Strategic Portfolios BairdNext Portfolios

Private Investment Management Russell Model Strategies

Non-Discretionary Programs

ALIGN Custom Portfolios

Baird Advisory Choice

Separate Managed Account Programs

Baird Equity Asset Management Portfolios Dual Contract

Baird Recommended Managers

Riverfront Managed Portfolios

Baird SMA Network

Unified Managed Account Programs

ALIGN UMA Select Portfolios

Unified Advisory Select Portfolios

Robert W. Baird & Co. Incorporated 777 East Wisconsin Avenue Milwaukee, WI 53202 1-800-792-2473

Member FINRA & SIPC SEC File No. 801-7571

This wrap fee program brochure ("Brochure") provides information about the qualifications and business practices of Robert W. Baird & Co. Incorporated ("Baird") and Baird Private Wealth Management, a department of Baird. Clients should carefully consider this information before becoming a client of Baird. If you have any questions about the contents of this Brochure, please contact us at the toll-free phone number listed above. The information contained in this Brochure has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority. Additional information about Baird is available on the SEC's website at adviserinfo..

Material Changes

Robert W. Baird & Co. Incorporated ("Baird") updated the Form ADV Part 2A wrap fee program brochure for its Private Wealth Management Department (the "Brochure") on March 24, 2021. The following summary discusses the material changes that Baird has made to the Brochure since March 19, 2020, the date of the last annual update to the Brochure.

? Baird has moved the location of many of the documents referenced in the Brochure to a new website address: retailinvestor.

? Baird ceased offering its ALIGN Tactical Portfolios Program, effective January 5, 2021.

? Certain Riverfront Managed Portfolios are now offered through the Overlay Manager. See the Section of the Brochure entitled "Services, Fees and Compensation--SMA Programs--Riverfront Managed Portfolios Program" for more information.

? Baird explained the circumstances under which classes of mutual fund and UIT investments designed for brokerage accounts can be transferred from a brokerage account to a Baird Advisory Choice Account and Baird's process for converting or liquidating those investments. See the Section of the Brochure entitled "Services, Fees and Compensation--Additional Program Information-- Permitted Investments--Baird Advisory Choice Program" for more information.

? Baird updated information about tax harvesting, capital gain avoidance and other tax management services offered under the ALIGN Strategic Portfolios Program, the ALIGN Custom Program, the BairdNext Portfolios Program, the Russell Model Strategies Program, the ALIGN UMA Select Program and the UAS Program. See the Section of the Brochure entitled "Services, Fees and Compensation-- Additional Program Information--Special Considerations for the Programs--ALIGN, BairdNext Portfolios, Russell, SMA and UMA Clients--Tax Management Services" for more information.

? Baird updated information about the trust services arrangements, margin loan program, and securities-based lending program that Baird offers to clients, the compensation that Baird and Baird Financial Advisors receive and the conflicts of interest associated with those activities. See the Subsections of the Brochure entitled "Trust Services Arrangements", "Margin Loans" and "SecuritiesBased Lending Program", respectively under the heading "Services, Fees and Compensation-- Additional Program Information" for more information.

? Baird updated the range of Portfolio Fee rates that apply to new Accounts participating in certain SMA and UMA Programs. See the Section of the Brochure entitled "Services, Fees and Compensation--Program Fees--Fee Options and Fee Schedules--Asset-Based Fee Arrangements-- Unified Advice Fee Arrangement--Portfolio Fee Schedule" for more information.

? Baird clarified that if a client maintains a debit balance in the client's margin account, the balance has no bearing on the asset-based Program Fee the client pays Baird for advisory services. Baird also clarified that if a client has an option position in an advisory account, the value of the option will be excluded from the Program Fee calculation, unless a margin account was required for the option transaction, in which instance the absolute value of the current market price of the option will be used when calculating the client's Program Fee. See the Section of the Brochure entitled "Services, Fees and Compensation--Program Fees--Calculation and Payment of Program Fees" for more information.

? Baird provided additional information about how Baird Financial Advisors are compensated, including additional information about the special compensation typically paid to Baird Financial Advisors joining Baird from another firm, how that compensation is often structured in the form of a forgivable loan and the financial incentives and potential conflicts of interest created by those compensation practices. See the Section of the Brochure entitled "Services, Fees and

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Robert W. Baird & Co. Incorporated 777 East Wisconsin Avenue, Milwaukee, WI 53202 800-RW-BAIRD..Member FINRA & SIPC

Baird PWM Wrap Brochure Rev. 03/24/2021

Compensation--Program Fees--Program Fee Payments to Baird, Financial Advisors and Investment Managers" for more information.

? Baird clarified that if a client directs Baird to liquidate assets in connection with a closure of an Account, Baird acts as broker-dealer, and not investment advisor, when processing such a liquidation request and that the client will generally be charged transaction-based fees in accordance with the applicable commission or other fee schedule.

? The portfolio management courses accepted by Baird that Financial Advisors may complete as part of their admission process into the PIM Program now include Certified Investment Management Analyst (CIMA) and Certified Portfolio Manager (CPM) in addition to Chartered Financial Analyst (CFA).

? Baird updated information about Baird's regulatory assets under management. See the Section of the Brochure entitled "Portfolio Manager Selection and Evaluation--Selection and Evaluation-- Advisory Business" for more information.

? Baird added a description of Hilliard Lyons Trust Custom Portfolio Management. See the Section of the Brochure entitled "Portfolio Manager Selection and Evaluation--Methods of Analysis, Investment Strategies and Risk of Loss--Methods of Analysis--Certain Model Portfolios" for additional information.

? Baird updated the descriptions of the Baird Recommended Model Portfolio and Baird Rising Dividend Portfolio, including an update that no single company stock will comprise more than the greater of 5% of the applicable portfolio or 1.5 times the stock's market weight in the S&P 500 index. See the Section of the Brochure entitled "Portfolio Manager Selection and Evaluation--Methods of Analysis, Investment Strategies and Risk of Loss--Methods of Analysis--Certain Model Portfolios" for additional information.

? Baird now offers certain private debt funds to eligible clients. See the Sections of the Brochure entitled "Portfolio Manager Selection and Evaluation--Methods of Analysis, Investment Strategies and Risk of Loss--Methods of Analysis--Certain Recommended Lists" and "Portfolio Manager Selection and Evaluation--Methods of Analysis, Investment Strategies and Risk of Loss--Methods of Analysis--Certain Eligible Product Lists" for additional information.

? Baird removed the American Funds Conservative Growth and Income Portfolio and added the American Funds Moderate Growth and Income Portfolio to the list of model portfolios available to Baird Advisory Choice Accounts. See the Section of the Brochure entitled "Portfolio Manager Selection and Evaluation--Methods of Analysis, Investment Strategies and Risk of Loss--Baird Advisory Choice Program" for a description of the portfolio.

? Baird added taxable and tax-exempt Baird-research backed asset allocation portfolios to the ALIGN UMA Select Portfolios Program. See the Section of the Brochure entitled "Portfolio Manager Selection and Evaluation--Methods of Analysis, Investment Strategies and Risk of Loss--Methods of Analysis-- Certain Recommended Lists" and "Portfolio Manager Selection and Evaluation--Methods of Analysis, Investment Strategies and Risk of Loss--ALIGN UMA Select Program" for a description of the portfolios.

? Baird updated information about risks associated with the use of private debt funds and funds of private debt funds and recent events, such as those associated with the ongoing coronavirus (COVID-19) pandemic, potential policy changes as the result of the recent U.S. Presidential election, trade disagreements, Brexit and other geopolitical events. See the Section of the Brochure entitled "Portfolio Manager Selection and Evaluation--Methods of Analysis, Investment Strategies and Risk of Loss--Principal Risks" for more specific information.

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Robert W. Baird & Co. Incorporated 777 East Wisconsin Avenue, Milwaukee, WI 53202 800-RW-BAIRD..Member FINRA & SIPC

Baird PWM Wrap Brochure Rev. 03/24/2021

? Baird updated its disclosures about how it casts proxy votes for clients and its use of an electronic vote management system to cast proxy votes. See the Section of the Brochure entitled "Portfolio Manager Selection and Evaluation--Voting Client Securities" for more information.

? Baird updated information about Baird's financial services activities and its affiliates. See the Section of the Brochure entitled "Additional Information--Other Financial Industry Activities and Affiliations" for more information.

? Baird updated information about, and the conflicts of interest associated with, certain advisory account fee arrangements, ongoing product fees paid by mutual fund companies and Schwab related to client mutual fund investments, third party payments from mutual fund and UIT sponsors, Baird underwritten offerings and IPOs, and the compensation that Baird receives on certain client options or equity securities orders routed to some venues (commonly known as "payment for order flow"). See the Section of the Brochure entitled "Additional Information--Code of Ethics, Participation or Interest in Client Transactions and Personal Trading--Participation or Interest in Client Transactions" for more specific information.

A client should note that the foregoing summary only discusses material changes made to the Brochure since March 19, 2020. The updated Brochure contains changes that are not listed above.

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Robert W. Baird & Co. Incorporated 777 East Wisconsin Avenue, Milwaukee, WI 53202 800-RW-BAIRD..Member FINRA & SIPC

Baird PWM Wrap Brochure Rev. 03/24/2021

Table of Contents

Material Changes ............................................................................................ ii Table of Contents ............................................................................................ v Services, Fees and Compensation ................................................................... 1

The Client-Baird Fiduciary Relationship............................................................ 1 Summary of Services .................................................................................... 1 Discretionary Programs ................................................................................. 4

ALIGN Strategic Portfolios Program ........................................................... 4 BairdNext Portfolios Program .................................................................... 5 Private Investment Management Program .................................................. 6 Russell Model Strategies Program ............................................................. 6 Non-Discretionary Programs .......................................................................... 7 ALIGN Custom Portfolios Program ............................................................. 7 Baird Advisory Choice Program ................................................................. 8 SMA Programs ........................................................................................... 10 Baird Equity Asset Management Portfolios Program ................................... 10 Baird Recommended Managers Program .................................................. 11 Baird SMA Network Program .................................................................. 13 Dual Contract Program .......................................................................... 15 Riverfront Managed Portfolios Program .................................................... 17 Other SMA Strategy Information ............................................................. 19 UMA Programs ........................................................................................... 19 ALIGN UMA Select Portfolios Program ...................................................... 19 Unified Advisory Select Portfolios Program ............................................... 21 SMA Strategy Information...................................................................... 24 Additional Program Information.................................................................... 24 Investment Discretion ........................................................................... 24 Trading for Client Accounts .................................................................... 27 Complex Strategies and Complex Investment Products .............................. 33 Permitted Investments .......................................................................... 36 Unsupervised Assets ............................................................................. 37 Special Considerations for the Programs .................................................. 38 Goal Management ................................................................................. 40 Investment Objectives........................................................................... 41 Mutual Fund Share Class Policy............................................................... 42 Custody Services .................................................................................. 43 Cash Sweep Program ............................................................................ 44 Trust Services Arrangements.................................................................. 45 Margin Loans........................................................................................ 46 Securities-Based Lending Program .......................................................... 46 Client Responsibilities ............................................................................ 47 Legal and Tax Considerations ................................................................. 47 Program Fees............................................................................................. 48 Fee Options and Fee Schedules............................................................... 48 Program Account Minimums ................................................................... 50 Calculation and Payment of Program Fees ................................................ 51

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Robert W. Baird & Co. Incorporated 777 East Wisconsin Avenue, Milwaukee, WI 53202 800-RW-BAIRD..Member FINRA & SIPC

Baird PWM Wrap Brochure Rev. 03/24/2021

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