Baron Select Funds
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Table of Contents |
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Baron Funds® |
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Baron
Funds® |
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3 |
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13 |
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22 |
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31 |
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40 |
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50 |
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60 |
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70 |
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78 |
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87 |
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98 |
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Information
about the Funds |
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107 |
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107 |
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110 |
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111 |
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124 |
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125 |
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Information
about your Investment |
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129 |
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130 |
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133 |
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135 |
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138 |
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138 |
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140 |
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140 |
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141 |
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142 |
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145 |
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147 |
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181 |
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Back cover |
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Baron Partners Fund
Investment Goal
The
investment goal of Baron Partners Fund® (the “Fund”) is capital
appreciation.
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you would pay if you bought and
held shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table
and example below.
Annual Fund Operating Expenses
(Expenses
that you pay each year as a percentage of the value of your
investment)
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Management Fee |
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Distribution (12b‑1) Fee |
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Other Expenses |
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Total Other Expenses |
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Total Annual Fund Operating Expenses |
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Operating Expenses |
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Interest Expenses |
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BARON PARTNERS FUND |
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Retail
Shares |
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1.00% |
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0.25% |
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0.05% |
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0.39% |
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0.44% |
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1.69% |
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Institutional
Shares |
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1.00% |
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0.00% |
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0.04% |
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0.40% |
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0.44% |
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1.44% |
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R6
Shares |
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1.00% |
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0.00% |
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0.04% |
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0.40% |
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0.44% |
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1.44% |
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Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return each year, and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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YEAR |
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1 |
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3 |
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5 |
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10 |
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BARON
PARTNERS FUND |
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Retail
Shares |
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$ |
172 |
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$ |
533 |
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$ |
918 |
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$ |
1,998 |
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Institutional
Shares |
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$ |
147 |
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$ |
456 |
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$ |
787 |
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$ |
1,724 |
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R6
Shares |
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$ |
147 |
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$ |
456 |
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$ |
787 |
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$ |
1,724 |
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Portfolio
Turnover. The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes for Fund shareholders.
These costs, which are not reflected in Total Annual Fund
Operating
Baron Partners Fund
Expenses or in the example,
affect the Fund’s performance. During the most recent fiscal year ended
December 31, 2022, the Fund’s portfolio turnover rate was 6.19% of the average value of its
portfolio.
Investments, Risks, and
Performance
Principal Investment Strategies of the Fund
The
Fund is a non-diversified fund that invests for the long term primarily in
equity securities in the form of common stock of U.S. growth companies of any
market capitalization. BAMCO, Inc. (“BAMCO” or the “Adviser”) seeks to invest in
businesses it believes have significant opportunities for growth, sustainable
competitive advantages, exceptional management, and an attractive valuation. To
take advantage of opportunities to invest, the Fund may borrow money from banks
(leverage) in an amount up to one-third of its total assets, which include
assets purchased with borrowed money.
Principal Risks of Investing in the Fund
Non-Diversified Portfolio. The Fund is non-diversified, which
means it will likely have a greater percentage of its assets in a single issuer
than a diversified fund. As a result, a non-diversified fund will likely invest
a greater percentage of its assets in fewer issuers, and the performance of
those issuers may have a greater effect on the Fund’s performance compared to a
diversified fund. Thus, a non-diversified fund is more likely to experience
significant fluctuations in value, exposing the Fund to a greater risk of loss
in any given period than a diversified fund. As of the date of this prospectus,
about 36% of the Fund is invested in Tesla (“Tesla”) stock due to dramatic
upward market movements in Tesla’s share price. For so long as the Fund
maintains its investment in Tesla, the Fund’s performance will be significantly
affected by the performance of Tesla stock and any decline in the price of Tesla
stock would materially and adversely affect your investment in the Fund. (Please
see “Tesla” in the “Principal Risks of Investing in the Fund”
section.)
Tesla. As of the date of this
prospectus, about 36% of the Fund’s assets are invested in Tesla stock.
Therefore, the Fund is exposed to the risk that were Tesla stock to lose
significant value, which could happen rapidly, the Fund’s performance would be
adversely affected. Before investing in the Fund, investors should carefully
consider publicly available information about Tesla. There can be no assurances
that the Fund will maintain its investment in Tesla, as the Adviser maintains
discretion to actively manage the Fund’s portfolio, including by decreasing or
liquidating the Fund’s investment in Tesla at any time. However, for so long as
the Fund maintains a substantial investment in Tesla, the Fund’s performance
will be significantly affected
Baron Partners Fund
by
the performance of Tesla stock and any decline in the price of Tesla stock would
materially and adversely affect your investment in the
Fund.
Single Issuer. Single issuer risk is
the possibility that factors specific to an issuer to which the Fund is exposed
will affect the market prices of the issuer’s securities and therefore the net
asset value of the Fund. Due to the size of the Fund’s investment in Tesla,
about 36% of its assets as of the date of this prospectus, the net asset value
of the Fund will be materially impacted by the price of Tesla stock. (Please see
“Tesla” in the “Principal Risks of Investing in the Fund”
section.)
Industry Concentration. From time to
time, market fluctuations in the value of the Fund’s investments, combined with
the Fund’s non‑diversified portfolio, may result in the Fund being concentrated
in the securities of a single issuer or a small number of issuers, including in
a particular industry. As a result, the Fund will be particularly exposed to the
risks of that company or industry relative to the risk exposure of investment
companies holding a diversified portfolio of securities or those that seek to
maintain near-index weightings in their portfolio securities. Accordingly, in
those cases, the Fund will be disproportionately exposed to the market
conditions, interest rates, and economic, regulatory, or financial developments
that significantly affect that company or industry. For example, due to the size
of the Fund’s investment in Tesla, Inc., which represents about 36% of its
assets as of the date of this prospectus, the Fund will be adversely impacted by
developments affecting the automotive and energy industries, as well as
governmental environmental regulations. (Please see “Tesla” in the “Principal
Risks of Investing in the Fund”
section.)
Leverage. The Fund borrows money
from banks to buy securities and pledge its assets in connection with the
borrowing. If the interest expense of the borrowing is greater than the return
on the securities bought, the use of leverage will decrease the return to
shareholders in the Fund. Use of leverage also tends to magnify the volatility
of the Fund’s returns. The greater the use of leverage by the Fund, the greater
the risk of the volatility of the Fund’s returns.
Growth Investing. Growth stocks can
react differently to issuer, political, market and economic developments than
the market as a whole and other types of stocks. Growth stocks tend to be more
expensive relative to their earnings or assets compared to other types of
stocks. As a result, because growth stocks tend to be sensitive to changes in
their earnings and to increasing interest rates and inflation, they tend to be
more volatile than other types of stocks. In response, from time to time, growth
investing as an investment style may go out of favor with
investors.
Consumer Discretionary Sector. The
consumer discretionary sector may be affected by changes in domestic and
international economies, exchange and interest rates, inflation, competition,
consumers’ disposable income, consumer preferences, social trends and marketing
campaigns.
Baron Partners Fund
General Stock Market. Fund losses may be incurred due to declines in one or
more markets in which Fund investments are made. These
declines may be the result of, among other things, political, regulatory,
market, economic or social developments affecting the relevant market(s). In
addition, turbulence as has recently been experienced, caused, among other
reasons, by increased inflation, tightening monetary policy and interest rate
increases by the US Federal Reserve or similar international bodies, and reduced
liquidity in financial markets may continue to negatively affect many issuers,
which could have an adverse effect on your Fund investment. Events involving
limited liquidity, defaults, non-performance or other adverse developments that
affect one industry, such as the financial services industry, or concerns or
rumors about any events of these kinds, have in the past and may in the future
lead to market-wide liquidity problems, may spread to other industries, and
could negatively affect the value and liquidity of the Fund’s investments.
Global economies and financial markets are increasingly interconnected, and
conditions and events in one country, region or financial market, such as
Russia’s invasion of Ukraine in February 2022 and the world-wide response to it,
have and may continue to adversely impact issuers and markets worldwide. The
coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses
taken by many governments or voluntarily imposed by private parties, including
closing borders, restricting travel and imposing prolonged quarantines or
similar restrictions, as well as the closure of, or operational changes to,
many retail and other businesses, have had negative impacts, and in many cases
severe negative impacts, on markets worldwide. It is not known how long such
impacts, or any future impacts of other significant events described above, will
or would last, but there could be a prolonged period of global economic
slowdown, which may impact your Fund investment. Raising the ceiling on U.S.
government debt has become increasingly politicized. Any failure to increase the
total amount that the U.S. government is authorized to borrow could lead to a
default on U.S. government obligations, with unpredictable consequences for
economies and markets in the U.S. and
elsewhere.
Industrials Sector. The Fund’s
investments are exposed to issuers conducting business in the Industrials
Sector. The Industrials Sector includes manufacturers and distributors of
capital goods such as aerospace and defense, building projects, electrical
equipment and machinery and companies that offer construction and engineering
services. It also includes providers of commercial and professional services
including printing, environmental and facilities services, office services and
supplies, security and alarm services, human resource and employment services,
research and consulting services. It also includes companies that provide
transportation services. The Fund is subject to the risk that the securities of
such issuers will underperform the market as a whole due to legislative or
regulatory changes, adverse market conditions and/or increased competition
affecting the Industrials Sector. The prices of the securities of companies
operating in the
Baron Partners Fund
Industrials
Sector may fluctuate due to the level and volatility of commodity prices, the
exchange value of the dollar, import controls, worldwide competition, liability
for environmental damage, depletion of resources, and mandated expenditures for
safety and pollution control
devices.
Risks of Emphasizing a Sector or
Industry. If the Fund has invested a higher percentage of its
total assets in a particular sector or industry, changes affecting that sector
or industry may have a significant impact on the performance of the Fund’s
overall portfolio. The economies and financial markets of certain regions — such
as Latin America, Asia, and Europe and the Mediterranean region — can be
interdependent and may all decline at the same
time.
Small- and Mid-Sized Companies. The
Adviser believes there is more potential for capital appreciation in small- and
mid-sized companies, but there also may be more risk. Securities of small- and
mid-sized companies may not be well known to most investors, and the securities
may be less actively traded than those of large businesses. The securities of
small- and mid-sized companies may fluctuate in price more widely than the stock
market generally, and they may be more difficult to sell during market
downturns. Small- and mid-sized companies rely more on the skills of management
and on their continued tenure. Investing in small- and mid-sized companies
requires a long-term outlook and may require shareholders to assume more risk
and to have more patience than investing in the securities of larger, more
established companies.
Performance
Although
Baron Partners Fund was registered as a
mutual fund on April 30, 2003, it has been managed in the same style and by
the same portfolio manager since the predecessor partnership’s inception on
January 31, 1992, and since its conversion to a Delaware statutory trust
structure on April 30, 2003. The Fund’s investment goals, policies,
guidelines and restrictions are, in all material respects, equivalent to the
predecessor partnership’s. The following information shows the Fund’s annual
returns and long-term performance reflecting the actual fees and expenses that
were charged when the Fund was a partnership and since it converted to a mutual
fund. The predecessor partnership charged a 20% performance fee after it reached
a certain performance benchmark. If the annual returns for the Fund did not
reflect the performance fee for the years the partnership charged a performance
fee, the returns would have been higher. The Fund does not charge a performance
fee. From its inception on January 31, 1992 through April 30, 2003,
the predecessor partnership was not subject to certain investment restrictions,
diversification requirements and other restrictions of the Investment Company
Act of 1940, as amended (the “1940 Act”), or the Internal Revenue Code of 1986,
as amended (the “Code”), which if they had been applicable, might have
adversely affected its
Baron Partners Fund
performance.
The following
bar chart and table provide some indication of the risks of investing in the
Fund (Retail Shares) by showing changes in the Fund’s performance from year to
year and by showing how the Fund’s average annual returns for 1, 5, 10 years,
and since inception compare with those of a broad measure of market
performance. The Fund’s past performance
(before and after taxes) is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available online at www.BaronFunds.com/performance
or by calling 1-800-99BARON
(1-800-992-2766).
Year by Year Total Return (%) as of
December 31 of Each Year (Retail Shares)
Best Quarter: |
6/30/20:
49.36% |
Worst Quarter: |
6/30/22: (30.59)% |
Average Annual Total Returns (for periods ended
12/31/22)
The
following table shows the Fund’s Retail Shares’ annual returns and long-term
performance (before and after taxes), which includes its predecessor
partnership’s average annual returns, and the change in value of broad-based
market indexes over various periods ended December 31, 2022. The table also shows the
average annual returns of the Fund’s Institutional Shares and R6 Shares, but it
does not show after-tax
returns.
After-tax returns are
calculated using the highest individual federal marginal income tax rate in
effect at the time of each distribution and assumed sale, but they do not
include the impact of state and local taxes. Because the
predecessor partnership did
Baron Partners Fund
not
have a distribution policy prior to May 1, 2003, the Fund is unable to show
after-tax returns prior to that date.
Your
actual after-tax returns depend on your own tax situation and may differ from
those shown. After-tax returns reflect past tax effects and are not predictive
of future tax effects. After-tax returns are not
relevant to investors who hold their Fund shares in a tax-deferred account
(including a
401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Average
Annual Total Returns for the periods ended December 31,
2022
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1 year |
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5 years |
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10 years |
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Since Inception |
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BARON
PARTNERS FUND |
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Retail Shares (Inception date: 1‑31‑92) |
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Return
before taxes |
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(42.56 |
)% |
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21.66% |
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19.17% |
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14.22% |
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Return
after taxes on distributions |
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(42.88 |
)% |
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20.79% |
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18.73% |
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N/A |
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Return
after taxes on distributions and sale of Fund shares |
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(24.83 |
)% |
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18.08% |
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16.72% |
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N/A |
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Institutional Shares* (Inception date:
5‑29‑09) |
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Return
before taxes |
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(42.41 |
)% |
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21.98% |
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19.49% |
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14.35% |
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R6 Shares* (Inception date:
8‑31‑16) |
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Return
before taxes |
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(42.41 |
)% |
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21.97% |
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19.48% |
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14.35% |
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Russell
Midcap® Growth
Index (reflects no deduction for fees, expenses or taxes) |
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(26.72 |
)% |
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7.64% |
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11.41% |
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9.43% |
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S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
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(18.11 |
)% |
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9.42% |
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12.56% |
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9.67% |
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* |
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Performance for the Institutional Shares
prior to May 29, 2009 is based on the performance of the Retail Shares.
Performance for the R6 Shares prior to August 31, 2016 is based on the
performance of the Institutional Shares, and prior to May 29, 2009 is
based on the Retail Shares. The Retail Shares have a distribution fee, but
Institutional Shares and R6 Shares do not. If the annual returns for the
Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect
this fee, the returns would be higher.
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The
Russell Midcap® Growth
Index is an unmanaged index of mid-cap growth companies. The S&P 500 Index
is an unmanaged index of larger-cap companies.
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Ronald Baron has
been the Lead Portfolio Manager of the Fund since its inception on
April 30, 2003. Prior to that, he was the portfolio manager of the
predecessor partnership from its inception on January 31, 1992 to
April 30, 2003.
Baron Partners Fund
Michael
Baron has been the co‑manager of the Fund since August 28, 2018.
Mr. Ronald Baron founded the Adviser in 1987. Mr. Michael Baron joined
the Adviser as a research analyst in September of 2004.
Purchase and Sale of Fund
Shares
Shares
may be purchased only on days that the New York Stock Exchange is open for
trading.
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Minimum
Initial Investment |
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Minimum Subsequent Investment |
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Maximum Subsequent Investment |
Retail
Shares |
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$2,000 |
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No Minimum |
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No Maximum |
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Baron
Automatic Investment Plan |
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$500 (with subsequent minimum investments of
$50 per month until your investment has reached $2,000.) |
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No Minimum |
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No Maximum |
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Baron
Funds®
website purchases |
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$2,000 |
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$10 |
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$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
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Institutional
Shares |
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$1,000,000 (Employees of the Adviser and its
affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and nonqualified) are not subject to the
eligibility requirements for Institutional Shares.) |
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No Minimum |
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No Maximum |
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Baron
Funds®
website purchases |
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You may not make an initial purchase through
the Baron Funds®
website. |
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$10 |
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$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
Baron Partners Fund
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Minimum
Initial Investment |
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Minimum Subsequent Investment |
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Maximum Subsequent Investment |
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R6
Shares |
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$5,000,000 (There is no minimum initial
investment for qualified retirement plans; however, the shares must be
held through plan-level or omnibus accounts held on the books of the
Fund.) |
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No Minimum |
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No Maximum |
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Baron
Funds®
website purchases |
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You may not make an initial purchase through
the Baron Funds®
website. |
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$10 |
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$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
You
Can Purchase or Redeem Shares By:
1. |
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Mailing a request to
Baron Funds®, P.O.
Box 219946, Kansas City, MO 64121-9946 or by overnight mail to: Baron
Funds®,
430 West 7th Street, Kansas City, MO 64105-1514; |
3. |
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Calling
1-800-442-3814; |
4. |
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Visiting the Baron
Funds® website
www.BaronFunds.com;
or |
5. |
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Through a broker, dealer
or other financial intermediary that may charge you a
fee. |
The
Fund is not for short-term traders who intend to purchase and then sell their
Fund shares within a 90 day period. If the Adviser reasonably believes that a
person is not a long-term investor, it will attempt to prohibit that person from
making additional investments in the Fund.
Tax Information
Distributions
of the Fund’s net investment income (other than “qualified dividend income”) and
distributions of net short-term capital gains will be taxable to you as ordinary
income. Distributions of the Fund’s net capital gains reported as capital gain
dividends by the Fund will be taxable to you as long-term capital gains,
regardless of the length of time you have held shares of the Fund. If you are
investing through a tax-deferred arrangement, such as a 401(k) plan or an
individual retirement account, you may be subject to federal income tax on
withdrawals from tax-deferred arrangement at a later date.
Baron Partners Fund
Financial Intermediary
Compensation
If
you purchase Retail or Institutional Shares of the Fund through a broker, dealer
or other financial intermediary (such as a bank or financial adviser), the Fund,
Baron Capital, Inc., the Fund’s distributor, BAMCO or their affiliates may pay
the intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker, dealer or
other financial intermediary, including your salesperson, to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
Baron Focused Growth Fund
Investment Goal
The
investment goal of Baron Focused Growth Fund® (the “Fund”) is capital
appreciation.
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you would pay if you bought and
held shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table
and example below.
Annual Fund Operating Expenses
(Expenses
that you pay each year as a percentage of the value of your
investment)
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Management Fee |
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Distribution (12b-1) Fee |
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Other Expenses |
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Total Annual Fund Operating Expenses |
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BARON
FOCUSED GROWTH FUND |
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|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
1.00% |
|
|
|
0.25% |
|
|
|
0.07% |
|
|
|
1.32% |
|
Institutional
Shares |
|
|
1.00% |
|
|
|
0.00% |
|
|
|
0.06% |
|
|
|
1.06% |
|
R6
Shares |
|
|
1.00% |
|
|
|
0.00% |
|
|
|
0.05% |
|
|
|
1.05% |
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
FOCUSED GROWTH FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
134 |
|
|
$ |
418 |
|
|
$ |
723 |
|
|
$ |
1,590 |
|
Institutional
Shares |
|
$ |
108 |
|
|
$ |
337 |
|
|
$ |
585 |
|
|
$ |
1,294 |
|
R6
Shares |
|
$ |
107 |
|
|
$ |
334 |
|
|
$ |
579 |
|
|
$ |
1,283 |
|
Portfolio
Turnover. The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes for Fund shareholders.
These costs, which are not reflected in Total Annual Fund
Operating
Baron Focused Growth Fund
Expenses or in the example,
affect the Fund’s performance. During the most recent fiscal year ended
December 31, 2022, the Fund’s portfolio turnover rate was 22.34% of the average value of its
portfolio.
Investments, Risks, and
Performance
Principal Investment Strategies of the Fund
The
Fund is a non-diversified fund that invests for the long term primarily in
equity securities in the form of common stock of U.S. small- and mid-sized
growth companies. The Adviser defines small- and mid-sized companies as those,
at the time of purchase, with market capitalizations up to the largest market
cap stock in the Russell Midcap Growth Index at reconstitution. The Adviser
seeks to invest in businesses it believes have significant opportunities for
growth, sustainable competitive advantages, exceptional management, and an
attractive valuation. Because of its long-term approach, the Fund could have a
significant percentage of its assets invested in securities that have
appreciated beyond their original market cap
ranges.
Principal Risks of Investing in the Fund
Non‑Diversified Portfolio. The Fund
is non‑diversified, which means it will likely have a greater percentage of its
assets in a single issuer than a diversified fund. As a result, a
non‑diversified fund will likely invest a greater percentage of its assets in
fewer issuers, and the performance of those issuers may have a greater effect on
the Fund’s performance compared to a diversified fund. Thus, a non‑diversified
fund is more likely to experience significant fluctuations in value, exposing
the Fund to a greater risk of loss in any given period than a diversified fund.
As of the date of this prospectus, about 11% of the Fund is invested in Tesla
(“Tesla”) stock due to dramatic upward market movements in Tesla’s share price.
For so long as the Fund maintains its investment in Tesla, the Fund’s
performance will be significantly affected by the performance of Tesla stock and
any decline in the price of Tesla stock would materially and adversely affect
your investment in the Fund. (Please see “Tesla” in the “Principal Risks of
Investing in the Fund”
section.)
Tesla.
As of the date of this prospectus, about 11% of the Fund’s assets are invested
in Tesla stock. Therefore, the Fund is exposed to the risk that were Tesla stock
to lose significant value, which could happen rapidly, the Fund’s performance
would be adversely affected. Before investing in the Fund, investors should
carefully consider publicly available information about Tesla. There can be no
assurances that the Fund will maintain its investment in Tesla, as the Adviser
maintains discretion to actively manage the Fund’s portfolio, including by
decreasing or liquidating the Fund’s investment in Tesla at any time. However,
for so long as the Fund maintains a
Baron Focused Growth Fund
substantial
investment in Tesla, the Fund’s performance will be significantly affected by
the performance of Tesla stock and any decline in the price of Tesla stock would
materially and adversely affect your investment in the
Fund.
Single Issuer. Single issuer risk is the
possibility that factors specific to an issuer to which the Fund is exposed will
affect the market prices of the issuer’s securities and therefore the net asset
value of the Fund. Due to the size of the Fund’s investment in Tesla, about 11%
of its assets as of the date of this prospectus, the net asset value of the Fund
will be materially impacted by the price of Tesla stock. (Please see “Tesla” in
the “Principal Risks of Investing in the Fund”
section.)
Industry Concentration. From time to time,
market fluctuations in the value of the Fund’s investments, combined with the
Fund’s non-diversified portfolio, may result in the Fund being concentrated in
the securities of a single issuer or a small number of issuers, including in a
particular industry. As a result, the Fund will be particularly exposed to the
risks of that company or industry relative to the risk exposure of investment
companies holding a diversified portfolio of securities or those that seek to
maintain near-index weightings in their portfolio securities. Accordingly, in
those cases, the Fund will be disproportionately exposed to the market
conditions, interest rates, and economic, regulatory, or financial developments
that significantly affect that company or industry. For example, due to the size
of the Fund’s investment in Tesla, Inc., which represents about 11% of its
assets as of the date of this prospectus, the Fund will be adversely impacted by
developments affecting the automotive and energy industries, as well as
governmental environmental regulations. (Please see “Tesla” in the “Principal
Risks of Investing in the Fund”
section.)
Growth Investing. Growth stocks can react
differently to issuer, political, market and economic developments than the
market as a whole and other types of stocks. Growth stocks tend to be more
expensive relative to their earnings or assets compared to other types of
stocks. As a result, because growth stocks tend to be sensitive to changes in
their earnings and to increasing interest rates and inflation, they tend to be
more volatile than other types of stocks. In response, from time to time, growth
investing as an investment style may go out of favor with
investors.
Consumer Discretionary Sector. The
consumer discretionary sector may be affected by changes in domestic and
international economies, exchange and interest rates, inflation, competition,
consumers’ disposable income, consumer preferences, social trends and marketing
campaigns.
General Stock Market. Fund losses may be incurred due to declines in one or
more markets in which Fund investments are made. These
declines may be the result of, among other things, political, regulatory,
market, economic or social developments affecting the relevant market(s). In
addition, turbulence as has recently been experienced, caused, among other
reasons, by increased inflation, tightening
Baron Focused Growth Fund
monetary
policy and interest rate increases by the US Federal Reserve or similar
international bodies, and reduced liquidity in financial markets may continue to
negatively affect many issuers, which could have an adverse effect on your Fund
investment. Events involving limited liquidity, defaults, non-performance or
other adverse developments that affect one industry, such as the financial
services industry, or concerns or rumors about any events of these kinds, have
in the past and may in the future lead to market-wide liquidity problems, may
spread to other industries, and could negatively affect the value and liquidity
of the Fund’s investments. Global economies and financial markets are
increasingly interconnected, and conditions and events in one country, region or
financial market, such as Russia’s invasion of Ukraine in February 2022 and the
world-wide response to it, have and may continue to adversely impact issuers and
markets worldwide. The coronavirus disease 2019 (COVID-19) global pandemic and
the aggressive responses taken by many governments or voluntarily imposed by
private parties, including closing borders, restricting travel and imposing
prolonged quarantines or similar restrictions, as well as the closure of,
or operational changes to, many retail and other businesses, have had negative
impacts, and in many cases severe negative impacts, on markets worldwide. It is
not known how long such impacts, or any future impacts of other significant
events described above, will or would last, but there could be a prolonged
period of global economic slowdown, which may impact your Fund investment.
Raising the ceiling on U.S. government debt has become increasingly politicized.
Any failure to increase the total amount that the U.S. government is authorized
to borrow could lead to a default on U.S. government obligations, with
unpredictable consequences for economies and markets in the U.S. and
elsewhere.
Risks of Emphasizing a Sector or
Industry. If the Fund has invested a higher percentage of its
total assets in a particular sector or industry, changes affecting that sector
or industry may have a significant impact on the performance of the Fund’s
overall portfolio. The economies and financial markets of certain regions — such
as Latin America, Asia, and Europe and the Mediterranean region — can be
interdependent and may all decline at the same
time.
Small- and Mid-Sized Companies. The
Adviser believes there is more potential for capital appreciation in small- and
mid-sized companies, but there also may be more risk. Securities of small- and
mid-sized companies may not be well known to most investors, and the securities
may be less actively traded than those of large businesses. The securities of
small- and mid-sized companies may fluctuate in price more widely than the stock
market generally, and they may be more difficult to sell during market
downturns. Small- and mid-sized companies rely more on the skills of management
and on their continued tenure. Investing in small- and mid-sized companies
requires a long-term outlook and may require shareholders to assume more risk
and to have more patience than investing in the securities of larger, more
established companies.
Baron Focused Growth Fund
Performance
Although
Baron Focused Growth Fund was registered
as a mutual fund on June 30, 2008, it has been managed in the same style
and by the same portfolio manager since the predecessor partnership’s inception
on May 31, 1996. The Fund was added as a series of Baron Select Funds, a
Delaware statutory trust, on June 30, 2008. The Fund’s investment goals,
policies, guidelines and restrictions are, in all material respects, equivalent
to the predecessor partnership’s. The following information shows the Fund’s
annual returns and long-term performance reflecting the actual fees and expenses
that were charged when the Fund was a partnership and since it converted to a
mutual fund. The predecessor partnership charged a 15% performance fee after it
reached a certain performance benchmark. If the annual returns for the Fund did
not reflect the performance fee for the years the partnership charged a
performance fee, the returns would have been higher. The Fund does not charge a
performance fee. From its inception on May 31, 1996 through June 30,
2008, the predecessor partnership was not subject to certain investment
restrictions, diversification requirements and other restrictions of the
Investment Company Act of 1940, as amended (the “1940 Act”), or the Internal
Revenue Code of 1986, as amended (the “Code”), which if they had been
applicable, might have adversely affected its performance. The following
bar chart and table provide some indication of the risks of investing in the
Fund (Retail Shares) by showing changes in the Fund’s performance from year to
year and by showing how the Fund’s average annual returns for 1, 5, 10 years,
and since inception compare with those of a broad measure of market performance.
The
Fund’s past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available online at www.BaronFunds.com/performance
or by calling 1‑800‑99BARON
(1-800-992-2766).
Baron Focused Growth Fund
Year by Year Total Return (%) as of December 31
of Each Year (Retail Shares)
Best Quarter: |
9/30/20:
43.62% |
Worst Quarter: |
6/30/22: (19.97)% |
Average Annual Total Returns (for periods ended
12/31/22)
The
following table below shows the Fund’s Retail Shares’ annual returns and
long-term performance (before and after taxes), which includes its predecessor
partnership’s average annual returns, and the change in value of broad-based
market indexes over various periods ended December 31, 2022. The table also shows the
average annual returns of the Fund’s Institutional Shares and R6 Shares, but it
does not show after-tax
returns.
After-tax returns are
calculated using the highest individual federal marginal income tax rate in
effect at the time of each distribution and assumed sale, but they do not
include the impact of state and local taxes. Because the
predecessor partnership did not have a distribution policy prior to July 1,
2008, the Fund is unable to show after-tax returns prior to that
date.
Your
actual after-tax returns depend on your own tax situation and may differ from
those shown. After-tax returns reflect past tax effects and are not predictive
of future tax effects. After-tax returns are not
relevant to investors who hold their Fund shares in a tax-deferred account
(including a
401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Baron Focused Growth Fund
Average
Annual Total Returns for the periods ended December 31,
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
FOCUSED GROWTH FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Inception date: 5‑31‑96) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(28.30 |
)% |
|
|
20.63% |
|
|
|
15.10% |
|
|
|
12.70% |
|
Return
after taxes on distributions |
|
|
(30.07 |
)% |
|
|
18.88% |
|
|
|
13.84% |
|
|
|
12.17% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
(15.35 |
)% |
|
|
17.13% |
|
|
|
12.68% |
|
|
|
11.49% |
|
Institutional Shares* (Inception
date:
5‑29‑09) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(28.11 |
)% |
|
|
20.94% |
|
|
|
15.39% |
|
|
|
12.84% |
|
R6 Shares* (Inception date:
8‑31‑16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(28.11 |
)% |
|
|
20.94% |
|
|
|
15.40% |
|
|
|
12.84% |
|
Russell
2500™ Growth Index
(reflects no deduction for fees, expenses or taxes) |
|
|
(26.21 |
)% |
|
|
5.97% |
|
|
|
10.62% |
|
|
|
7.65% |
|
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
|
|
(18.11 |
)% |
|
|
9.42% |
|
|
|
12.56% |
|
|
|
8.80% |
|
* |
|
Performance for the Institutional Shares
prior to May 29, 2009 is based on the performance of the Retail Shares.
Performance for the R6 Shares prior to August 31, 2016 is based on the
performance of the Institutional Shares, and prior to May 29, 2009 is
based on the Retail Shares. The Retail Shares have a distribution fee, but
Institutional Shares and R6 Shares do not. If the annual returns for the
Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect
this fee, the returns would be higher.
|
The
Russell 2500™ Growth
Index is an unmanaged index of small to mid-cap growth companies. The S&P
500 Index is an unmanaged index of larger-cap companies.
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Ronald Baron has
been the Lead Portfolio Manager of the Fund since its inception on June 30,
2008. Prior to that, he was the portfolio manager of the predecessor partnership
from its inception on May 31, 1996 to June 30, 2008. David Baron has
been the co‑manager of the Fund since August 28, 2018. Mr. Ronald
Baron founded the Adviser in 1987. Mr. David Baron joined the Adviser as a
research analyst in July of 2005.
Baron Focused Growth Fund
Purchase and Sale of Fund
Shares
Shares
may be purchased only on days that the New York Stock Exchange is open for
trading.
|
|
|
|
|
| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
Retail
Shares |
|
$2,000 |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Automatic Investment Plan |
|
$500 (with subsequent minimum investments of
$50 per month until your investment has reached $2,000.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds® website
purchases |
|
$2,000 |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
|
|
| |
Institutional
Shares |
|
$1,000,000 (Employees of the Adviser and its
affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and nonqualified) are not subject to the
eligibility requirements for Institutional Shares.) |
|
No Minimum |
|
No Maximum |
Baron
Funds® website
purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
|
|
| |
R6
Shares |
|
$5,000,000 (There is no minimum initial
investment for qualified retirement plans; however, the shares must be
held through plan-level or omnibus accounts held on the books of the
Fund.) |
|
No Minimum |
|
No Maximum |
Baron Focused Growth Fund
|
|
|
|
|
| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
|
|
| |
Baron
Funds® website
purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
You
Can Purchase or Redeem Shares By:
1. |
|
Mailing a request to
Baron Funds®, P.O.
Box 219946, Kansas City, MO 64121-9946 or by overnight mail to: Baron
Funds®,
430 West 7th Street, Kansas City, MO 64105-1514; |
3. |
|
Calling
1-800-442-3814; |
4. |
|
Visiting the Baron
Funds® website
www.BaronFunds.com;
or |
5. |
|
Through a broker, dealer
or other financial intermediary that may charge you a
fee. |
The
Fund is not for short-term traders who intend to purchase and then sell their
Fund shares within a 90 day period. If the Adviser reasonably believes that a
person is not a long-term investor, it will attempt to prohibit that person from
making additional investments in the Fund.
Tax Information
Distributions
of the Fund’s net investment income (other than “qualified dividend income”) and
distributions of net short-term capital gains will be taxable to you as ordinary
income. Distributions of the Fund’s net capital gains reported as capital gain
dividends by the Fund will be taxable to you as long-term capital gains,
regardless of the length of time you have held shares of the Fund. If you are
investing through a tax-deferred arrangement, such as a 401(k) plan or an
individual retirement account, you may be subject to federal income tax on
withdrawals from tax-deferred arrangement at a later date.
Financial Intermediary
Compensation
If
you purchase Retail or Institutional Shares of the Fund through a broker, dealer
or other financial intermediary (such as a bank or financial adviser), the Fund,
Baron Capital, Inc., the Fund’s distributor, BAMCO or their affiliates may pay
the intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker, dealer or
other financial intermediary, including your salesperson, to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
Baron International
Growth Fund
Investment Goal
The
investment goal of Baron International Growth Fund® (the “Fund”) is capital
appreciation.
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you would pay if you bought and
held shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table
and example below.
Annual Fund Operating Expenses
(Expenses
that you pay each year as a percentage of the value of your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Management Fee |
|
|
Distribution (12b‑1) Fee |
|
|
Other Expenses |
|
|
Total Annual Fund Operating Expenses |
|
|
Expense Reimbursements |
|
|
Total Annual Fund Operating Expenses After Expense Reimbursements1 |
|
BARON
INTERNATIONAL GROWTH FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
0.88% |
|
|
|
0.25% |
|
|
|
0.13% |
|
|
|
1.26% |
|
|
|
(0.06 |
)% |
|
|
1.20% |
|
Institutional
Shares |
|
|
0.88% |
|
|
|
0.00% |
|
|
|
0.11% |
|
|
|
0.99% |
|
|
|
(0.04 |
)% |
|
|
0.95% |
|
R6
Shares |
|
|
0.88% |
|
|
|
0.00% |
|
|
|
0.11% |
|
|
|
0.99% |
|
|
|
(0.04 |
)% |
|
|
0.95% |
|
1 |
|
BAMCO, Inc. (“BAMCO” or the “Adviser”)
has agreed that, pursuant to a contract with an 11-year term terminating
on August 29,
2033, it will reimburse certain expenses of the Fund,
limiting net annual operating expenses (portfolio transaction costs,
interest, dividend, acquired fund fees and expenses and extraordinary
expenses are not subject to the operating expense limitation) to 1.20% of
average daily net assets of Retail Shares, 0.95% of average daily net
assets of Institutional Shares, and 0.95% of average daily net assets of
R6 Shares. Only the Board of Trustees of the Fund may terminate the
expense reimbursement agreement prior to its termination date.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same, giving effect to the
Baron International
Growth Fund
expense
reimbursement agreement described above. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
INTERNATIONAL GROWTH FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
122 |
|
|
$ |
381 |
|
|
$ |
660 |
|
|
$ |
1,455 |
|
Institutional
Shares |
|
$ |
97 |
|
|
$ |
303 |
|
|
$ |
525 |
|
|
$ |
1,166 |
|
R6
Shares |
|
$ |
97 |
|
|
$ |
303 |
|
|
$ |
525 |
|
|
$ |
1,166 |
|
Portfolio
Turnover. The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes for Fund shareholders. These costs, which
are not reflected in Total Annual Fund Operating Expenses or in the example,
affect the Fund’s performance. During the most recent fiscal year ended
December 31, 2022, the Fund’s portfolio turnover rate was 47.04% of the average value of its
portfolio.
Investments, Risks, and
Performance
Principal Investment Strategies of the Fund
The
Fund is a diversified fund that invests for the long term primarily in equity
securities in the form of common stock of non-U.S. growth companies. Non-U.S.
securities include securities that the Adviser determines are “non-U.S.” based
on the consideration of an issuer’s domicile, its principal place of business,
its primary stock exchange listing, the source of its revenue or other factors.
The Fund seeks to diversify its investments among several developed countries
and developing countries throughout the world, although the Fund may only invest
up to 35% of its net assets in developing countries. Developing countries
include countries in the MSCI Emerging Markets (EM) Index, countries in the MSCI
Frontier Markets (FM) Index and other countries determined by the Adviser to be
developing countries based on classifications made by the International Monetary
Fund or on country characteristics similar to those of the countries in the EM
and FM Indexes. The Fund may purchase securities of companies of any market
capitalization. The Adviser seeks to invest in businesses it believes have
significant opportunities for growth, sustainable competitive advantages,
exceptional management, and an attractive valuation.
The
Fund’s investments in non-U.S. securities generally are traded in currencies
other than U.S. dollars, so the Adviser buys and sells foreign currencies to
facilitate transactions in portfolio securities. The Adviser usually does not
hedge against possible fluctuations in exchange rates, but exposure to a
particular currency that the Adviser believes is overvalued may be hedged if the
Fund has a substantial position in securities traded in that currency. The Fund
may buy and sell currencies for cash at current exchange rates, or
Baron International
Growth Fund
use
an agreement to purchase or sell a specified currency at a specified future date
or within a specified time period, at a price set at the time of the
contract.
Principal Risks of Investing in the Fund
Non-U.S. Securities. Investing in
non-U.S. securities may involve additional risks to those inherent in investing
in U.S. securities, including exchange rate fluctuations, political or economic
instability, the imposition of exchange controls, expropriation, limited
disclosure and illiquid markets.
Developing Countries. The Fund
invests in developing countries, which include countries in the MSCI Emerging
Markets (EM) Index, countries in the MSCI Frontier Markets (FM) Index and other
countries determined by the Adviser to be developing countries based on
classifications made by the International Monetary Fund or on country
characteristics similar to those of the countries in the EM and FM Indexes.
Investments in developing countries are subject to all of the risks of non-U.S.
investing generally, and have additional heightened risks due to a lack of
established legal, political, business and social frameworks to support
securities markets, including: delays in settling portfolio securities
transactions; currency and capital controls; greater sensitivity to interest
rate changes; pervasiveness of corruption and crime; currency exchange rate
volatility; and inflation, deflation or currency devaluation. These risks are
greater for countries in the FM Index.
Currency. This refers to a decline
in the value of a foreign currency versus the U.S. dollar, which reduces the
dollar value of securities denominated in that currency. The overall impact on
the Fund’s holdings can be significant, unpredictable and long-lasting,
depending on the currencies represented in the portfolio and how each one
appreciates or depreciates in relation to the U.S. dollar and whether currency
positions are hedged. Under normal conditions, the Fund does not engage in
extensive foreign currency hedging programs. Further, because exchange rate
movements are volatile, the Fund’s attempts at hedging could be unsuccessful,
and it may not be possible to effectively hedge the currency risks of many
developing countries.
Growth Investing. Growth stocks can
react differently to issuer, political, market and economic developments than
the market as a whole and other types of stocks. Growth stocks tend to be more
expensive relative to their earnings or assets compared to other types of
stocks. As a result, because growth stocks tend to be sensitive to changes in
their earnings and to increasing interest rates and inflation, they tend to be
more volatile than other types of stocks. In response, from time to time, growth
investing as an investment style may go out of favor with
investors.
General Stock Market. Fund losses may be incurred due to declines in one or
more markets in which Fund investments are made. These
declines may be the result of, among other things, political, regulatory,
market, economic or social developments affecting
the
Baron International
Growth Fund
relevant
market(s). In addition, turbulence as has recently been experienced, caused,
among other reasons, by increased inflation, tightening monetary policy and
interest rate increases by the US Federal Reserve or similar international
bodies, and reduced liquidity in financial markets may continue to negatively
affect many issuers, which could have an adverse effect on your Fund investment.
Events involving limited liquidity, defaults, non-performance or other adverse
developments that affect one industry, such as the financial services industry,
or concerns or rumors about any events of these kinds, have in the past and may
in the future lead to market-wide liquidity problems, may spread to other
industries, and could negatively affect the value and liquidity of the Fund’s
investments. Global economies and financial markets are increasingly
interconnected, and conditions and events in one country, region or financial
market, such as Russia’s invasion of Ukraine in February 2022 and the world-wide
response to it, have and may continue to adversely impact issuers and markets
worldwide. The coronavirus disease 2019 (COVID-19) global pandemic and the
aggressive responses taken by many governments or voluntarily imposed by private
parties, including closing borders, restricting travel and imposing prolonged
quarantines or similar restrictions, as well as the closure of, or
operational changes to, many retail and other businesses, have had negative
impacts, and in many cases severe negative impacts, on markets worldwide. It is
not known how long such impacts, or any future impacts of other significant
events described above, will or would last, but there could be a prolonged
period of global economic slowdown, which may impact your Fund investment.
Raising the ceiling on U.S. government debt has become increasingly politicized.
Any failure to increase the total amount that the U.S. government is authorized
to borrow could lead to a default on U.S. government obligations, with
unpredictable consequences for economies and markets in the U.S. and
elsewhere.
Risks Associated with China and Hong
Kong. The Chinese government exercises significant control
over China’s economy through its industrial policies, monetary policy,
management of currency exchange rates, and management of the payment of foreign
currency-denominated obligations. Changes in these policies could adversely
impact affected industries or companies in China. China’s economy, particularly
its export-oriented industries, may be adversely impacted by trade or political
disputes with China’s major trading partners, including the U.S. The United
States has imposed tariffs and other trade barriers on Chinese exports, has
restricted sales of certain categories of goods to China, and has established
barriers to investments in China. Trade disputes may adversely affect the
economies of the United States and its trading partners, as well as companies
directly or indirectly affected and financial markets generally. In addition,
the Chinese government is involved in a longstanding dispute with Taiwan that
has included threats of invasion. If the political climate between the United
States and China does not improve or continues to deteriorate, if China were to
attempt unification of Taiwan by force, or if other geopolitical conflicts
develop or get worse, economies, markets and individual securities may be
severely affected both regionally and globally, and the value of the Fund’s
assets may go
Baron International
Growth Fund
down.
In addition, as its consumer class continues to grow, China’s domestically
oriented industries may be especially sensitive to changes in government policy
and investment cycles. If China were to exert its authority so as to alter the
economic, political or legal structures or the existing social policy of Hong
Kong, investor and business confidence in Hong Kong could be negatively affected
and have an adverse effect on the Fund’s
investments.
Risks Associated with Investing in Chinese Companies
through Variable Interest Entities. The Fund may obtain
exposure to companies based or operated in China by investing through legal
structures known as variable interest entities (“VIEs”). Instead of directly
owning the equity securities of a Chinese company, a VIE enters into service and
other contracts with the Chinese company. Although the VIE has no equity
ownership of the Chinese company, the contractual arrangements permit the VIE to
consolidate the Chinese company into its financial statements. VIE investments
are subject to the risk that any breach of these contractual arrangements will
be subject to Chinese law and jurisdiction, that Chinese law may be interpreted
or change in a way that affects the enforceability of the VIE’s arrangements, or
that contracts between the Chinese company and the VIE may otherwise not be
enforceable under Chinese
law.
Small- and Mid-Sized Companies. The
Adviser believes there is more potential for capital appreciation in small- and
mid-sized companies, but there also may be more risk. Securities of small- and
mid-sized companies may not be well known to most investors, and the securities
may be less actively traded than those of large businesses. The securities of
small- and mid-sized companies may fluctuate in price more widely than the stock
market generally, and they may be more difficult to sell during market
downturns. Small- and mid-sized companies rely more on the skills of management
and on their continued tenure. Investing in small- and mid-sized companies
requires a long-term outlook and may require shareholders to assume more risk
and to have more patience than investing in the securities of larger, more
established companies.
Performance
The following
bar chart and table provide some indication of the risks of investing in
the Fund (Retail Shares) by showing changes in the Fund’s performance from
year to year and by showing how the Fund’s average annual returns for 1, 5, 10
years, and since inception compare with those of a broad measure of market
performance. The Fund’s past performance
(before and after taxes) is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available online at www.BaronFunds.com/performance
or by calling 1-800-99BARON
(1-800-992-2766).
Baron International
Growth Fund
Year by Year Total Return (%) as of
December 31 of Each Year (Retail Shares)
Best Quarter: |
6/30/20:
28.24% |
Worst Quarter: |
3/31/20: (21.51)% |
Average Annual Total Returns (for periods ended
12/31/22)
The
following table below shows the Fund’s Retail Shares’ annual returns and
long-term performance (before and after taxes) and the change in value of
broad-based market indexes over various periods ended December 31, 2022.
The table also shows the
average annual returns of the Fund’s Institutional Shares and R6 Shares, but it
does not show after-tax returns.
After-tax returns are
calculated using the highest individual federal marginal income tax rate in
effect at the time of each distribution and assumed sale, but they do not
include the impact of state and local
taxes.
Your
actual after-tax returns depend on your own tax situation and may differ from
those shown. After-tax returns reflect past tax effects and are not predictive
of future tax effects. After-tax returns are not
relevant to investors who hold their Fund shares in a tax-deferred account
(including a 401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Baron International
Growth Fund
Average
Annual Total Returns for the periods ended December 31, 2022
|
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| |
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1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
INTERNATIONAL GROWTH FUND |
|
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|
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|
|
|
Retail Shares (Inception date: 12‑31‑08) |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(27.47 |
)% |
|
|
1.92% |
|
|
|
6.24% |
|
|
|
8.77% |
|
Return
after taxes on distributions |
|
|
(27.72 |
)% |
|
|
1.51% |
|
|
|
5.84% |
|
|
|
8.28% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
(16.13 |
)% |
|
|
1.58% |
|
|
|
5.06% |
|
|
|
7.33% |
|
Institutional Shares* (Inception
date:5‑29‑09) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(27.29 |
)% |
|
|
2.17% |
|
|
|
6.50% |
|
|
|
9.04% |
|
R6 Shares* (Inception date: 8‑31‑16) |
|
|
|
|
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|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(27.28 |
)% |
|
|
2.16% |
|
|
|
6.50% |
|
|
|
9.03% |
|
MSCI
AC World ex USA Index (reflects no deduction for fees or
expenses) |
|
|
(16.00 |
)% |
|
|
0.88% |
|
|
|
3.80% |
|
|
|
6.13% |
|
MSCI
AC World ex USA IMI Growth Index (reflects no deduction for fees or
expenses) |
|
|
(23.49 |
)% |
|
|
1.39% |
|
|
|
4.77% |
|
|
|
7.04% |
|
* |
|
Performance for the Institutional Shares
prior to May 29, 2009 is based on the performance of the Retail Shares.
Performance for the R6 Shares prior to August 31, 2016 is based on the
performance of the Institutional Shares, and prior to May 29, 2009 is
based on the Retail Shares. The Retail Shares have a distribution fee, but
Institutional Shares and R6 Shares do not. If the annual returns for the
Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect
this fee, the returns would be higher.
|
The
MSCI AC World ex USA Index Net USD and the MSCI AC World ex USA IMI Growth Index
Net USD are unmanaged, free float-adjusted market capitalization weighted
indexes. Both the MSCI AC World ex USA Index Net USD and the MSCI AC World ex
USA IMI Growth Index Net USD are designed to measure the performance of large-,
mid-, and small-cap securities across developed and emerging markets, excluding
the United States. The MSCI AC World ex USA IMI Growth Index Net USD screens for
growth-style securities.
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Michael Kass has
been the portfolio manager of the Fund since its inception on December 31,
2008. Mr. Kass has worked at the Adviser as an analyst since November of
2007.
Baron International
Growth Fund
Purchase and Sale of Fund
Shares
Shares
may be purchased only on days that the New York Stock Exchange is open for
trading.
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Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
Retail
Shares |
|
$2,000 |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Automatic Investment Plan |
|
$500 (with subsequent minimum investments of
$50 per month until your investment has reached $2,000.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds® website
purchases |
|
$2,000 |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
|
|
| |
Institutional
Shares |
|
$1,000,000 (Employees of the Adviser and its
affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and nonqualified) are not subject to the
eligibility requirements for Institutional Shares.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds® website
purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
|
|
| |
R6
Shares |
|
$5,000,000 (There is no minimum initial
investment for qualified retirement plans; however, the shares must be
held through plan-level or omnibus accounts held on the books of the
Fund.) |
|
No Minimum |
|
No Maximum |
Baron International
Growth Fund
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| |
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|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
|
|
| |
Baron
Funds® website
purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
You
Can Purchase or Redeem Shares By:
1. |
|
Mailing a request to
Baron Funds®, P.O.
Box 219946, Kansas City, MO 64121-9946 or by overnight mail to: Baron
Funds®,
430 West 7th Street, Kansas City, MO 64105-1514; |
3. |
|
Calling
1-800-442-3814; |
4. |
|
Visiting the Baron
Funds® website
www.BaronFunds.com;
or |
5. |
|
Through a broker, dealer
or other financial intermediary that may charge you a
fee. |
The
Fund is not for short-term traders who intend to purchase and then sell their
Fund shares within a 90 day period. If the Adviser reasonably believes that a
person is not a long-term investor, it will attempt to prohibit that person from
making additional investments in the Fund.
Tax Information
Distributions
of the Fund’s net investment income (other than “qualified dividend income”) and
distributions of net short-term capital gains will be taxable to you as ordinary
income. Distributions of the Fund’s net capital gains reported as capital gain
dividends by the Fund will be taxable to you as long-term capital gains,
regardless of the length of time you have held shares of the Fund. If you are
investing through a tax-deferred arrangement, such as a 401(k) plan or an
individual retirement account, you may be subject to federal income tax on
withdrawals from tax-deferred arrangement at a later date.
Financial Intermediary
Compensation
If
you purchase Retail or Institutional Shares of the Fund through a broker, dealer
or other financial intermediary (such as a bank or financial adviser), the Fund,
Baron Capital, Inc., the Fund’s distributor, BAMCO or their affiliates may pay
the intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker, dealer or
other financial intermediary, including your salesperson, to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
Baron Real Estate Fund
Investment Goal
The
investment goal of Baron Real Estate Fund® (the “Fund”) is capital
appreciation.
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you would pay if you bought and
held shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table
and example below.
Annual Fund Operating Expenses
(Expenses
that you pay each year as a percentage of the value of your investment)
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| |
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|
Management Fee |
|
|
Distribution (12b‑1) Fee |
|
|
Other Expenses |
|
|
Total Annual Fund Operating Expenses |
|
BARON
REAL ESTATE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
1.00% |
|
|
|
0.25% |
|
|
|
0.08% |
|
|
|
1.33% |
|
Institutional
Shares |
|
|
1.00% |
|
|
|
0.00% |
|
|
|
0.07% |
|
|
|
1.07% |
|
R6
Shares |
|
|
1.00% |
|
|
|
0.00% |
|
|
|
0.07% |
|
|
|
1.07% |
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
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|
| |
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
REAL ESTATE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
135 |
|
|
$ |
421 |
|
|
$ |
729 |
|
|
$ |
1,601 |
|
Institutional
Shares |
|
$ |
109 |
|
|
$ |
340 |
|
|
$ |
590 |
|
|
$ |
1,306 |
|
R6
Shares |
|
$
|
109
|
|
|
$
|
340
|
|
|
$
|
590
|
|
|
$ |
1,306 |
|
Portfolio
Turnover. The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes for Fund shareholders.
These costs, which are not reflected in Total Annual Fund
Operating
Baron Real Estate Fund
Expenses
or in the example, affect the Fund’s performance. During the most recent fiscal
year ended December 31, 2022, the Fund’s portfolio turnover rate was
112.74% of the average value of its
portfolio.
Investments, Risks, and
Performance
Principal Investment Strategies of the Fund
The
Fund is a diversified fund that, under normal circumstances, invests 80% of its
net assets for the long term in equity securities in the form of common stock of
U.S. and non-U.S. real estate and real estate-related companies of any market
capitalization, and in companies which, in the opinion of BAMCO, Inc. (“BAMCO”
or the “Adviser”), own significant real estate assets at the time of investment
(“real estate companies”), however, investments in non-U.S. securities are
limited to 35% of the Fund’s total assets at the time of purchase. The Adviser
seeks to invest in businesses it believes have significant opportunities for
growth, sustainable competitive advantages, exceptional management, and an
attractive valuation.
Real
estate companies are companies that the Adviser determines are in the real
estate industry based on their involvement in construction, ownership,
management, operation, financing, refinancing, sales, leasing, development or
rehabilitation of real estate or are in a real estate-related industry based on
their provision of goods or services to the real estate industry.
A
company is considered to own significant real estate assets if, in the opinion
of the Adviser, the company has a substantial portion of its assets attributable
to one or more of the following: (a) real estate owned or leased by the
company as lessor or as lessee; or (b) the discounted value of the stream
of fees or revenues derived from the management or operation of real estate.
Examples
of companies that might qualify under one of these categories include:
∎ |
|
Real
estate operating
companies; |
∎ |
|
Real
estate investment trusts
(“REITs”); |
∎ |
|
Hotel,
hotel management companies and gaming
companies; |
∎ |
|
Real
estate brokerage/services companies and/or management
companies; |
∎ |
|
Financial
institutions that make or service mortgage
loans; |
∎ |
|
Manufacturers
or distributors of construction materials and/or building
supplies/products; |
∎ |
|
Home
furnishing and home improvement retail
companies; |
∎ |
|
Companies
with significant real estate holdings such as supermarkets, restaurant
chains and retail
chains; |
∎ |
|
Construction
and engineering companies;
and |
Baron Real Estate Fund
∎ |
|
Companies
with infrastructure-related assets such as toll roads, bridges, tunnels,
parking facilities, railroads, airports, broadcast and wireless towers,
electric transmission and distribution lines, power generation facilities,
hospitals and correctional
facilities. |
The
Fund will invest more than 25% of its net assets in the real estate
industry.
The
investment policy of the Fund relating to the types of securities in which 80%
of the Fund’s assets must be invested may be changed by the Fund’s Board of
Trustees without shareholder approval upon at least 60 days’
notice.
Principal Risks of Investing in the Fund
Real Estate Industry. In addition to
general market conditions, the value of the Fund will be affected by the
strength of the real estate markets. Factors that could affect the value of the
Fund’s holdings include the following: overbuilding and increased competition;
increases in property taxes and operating expenses; declines in the value of
real estate; lack of availability of equity and debt financing to refinance
maturing debt; vacancies due to economic conditions and tenant bankruptcies;
losses due to costs resulting from natural disasters and/or environmental
contamination and its related clean-up; changes in interest rates; changes in
zoning laws; casualty or condemnation losses; variations in rental income;
changes in neighborhood values; and functional obsolescence and appeal of
properties to tenants.
Concentration. The Fund’s strategy
of concentrating in real estate and real estate-related companies means that its
performance will be closely tied to the performance of a particular market
segment. The Fund’s concentration in these companies may present more risks than
if it were broadly diversified over numerous industries and sectors of the
economy. A downturn in these companies would have a larger impact on the Fund
than on a mutual fund that does not concentrate in such companies. At times, the
performance of these companies will lag the performance of other industries or
the broader market as a whole.
Growth Investing. Growth stocks can
react differently to issuer, political, market and economic developments than
the market as a whole and other types of stocks. Growth stocks tend to be more
expensive relative to their earnings or assets compared to other types of
stocks. As a result, because growth stocks tend to be sensitive to changes in
their earnings and to increasing interest rates and inflation, they tend to be
more volatile than other types of stocks. In response, from time to time, growth
investing as an investment style may go out of favor with
investors.
Consumer Discretionary Sector. The
consumer discretionary sector may be affected by changes in domestic and
international economies, exchange and interest rates, inflation, competition,
consumers’ disposable income, consumer preferences, social trends and marketing
campaigns.
Baron Real Estate Fund
General Stock Market. Fund losses may be incurred due to declines in one or
more markets in which Fund investments are made. These
declines may be the result of, among other things, political, regulatory,
market, economic or social developments affecting the relevant market(s). In
addition, turbulence as has recently been experienced, caused, among other
reasons, by increased inflation, tightening monetary policy and interest rate
increases by the US Federal Reserve or similar international bodies, and reduced
liquidity in financial markets may continue to negatively affect many issuers,
which could have an adverse effect on your Fund investment. Events involving
limited liquidity, defaults, non-performance or other adverse developments that
affect one industry, such as the financial services industry, or concerns or
rumors about any events of these kinds, have in the past and may in the future
lead to market-wide liquidity problems, may spread to other industries, and
could negatively affect the value and liquidity of the Fund’s investments.
Global economies and financial markets are increasingly interconnected, and
conditions and events in one country, region or financial market, such as
Russia’s invasion of Ukraine in February 2022 and the world-wide response to it,
have and may continue to adversely impact issuers and markets worldwide. The
coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses
taken by many governments or voluntarily imposed by private parties, including
closing borders, restricting travel and imposing prolonged quarantines or
similar restrictions, as well as the closure of, or operational changes to,
many retail and other businesses, have had negative impacts, and in many cases
severe negative impacts, on markets worldwide. It is not known how long such
impacts, or any future impacts of other significant events described above, will
or would last, but there could be a prolonged period of global economic
slowdown, which may impact your Fund investment. Raising the ceiling on U.S.
government debt has become increasingly politicized. Any failure to increase the
total amount that the U.S. government is authorized to borrow could lead to a
default on U.S. government obligations, with unpredictable consequences for
economies and markets in the U.S. and
elsewhere.
Non-U.S. Securities. Investing in
non-U.S. securities may involve additional risks to those inherent in investing
in U.S. securities, including exchange rate fluctuations, political or economic
instability, the imposition of exchange controls, expropriation, limited
disclosure and illiquid markets.
Small- and Mid-Sized Companies. The
Adviser believes there is more potential for capital appreciation in small- and
mid-sized companies, but there also may be more risk. Securities of small- and
mid-sized companies may not be well known to most investors, and the securities
may be less actively traded than those of large businesses. The securities of
small- and mid-sized companies may fluctuate in price more widely than the stock
market generally, and they may be more difficult to sell during market
downturns. Small- and mid-sized companies rely more on the skills of management
and on their continued tenure. Investing in small- and mid-sized companies
requires a long-term
Baron Real Estate Fund
outlook
and may require shareholders to assume more risk and to have more patience than
investing in the securities of larger, more established
companies.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund (Retail Shares) by showing changes in the Fund’s performance from year to
year and by showing how the Fund’s average annual returns for 1, 5, 10 years,
and since inception compare with those of a broad measure of market
performance. The Fund’s past performance
(before and after taxes) is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available online at www.BaronFunds.com/performance
or by calling 1-800-99BARON
(1‑800‑992‑2766).
Year by Year Total Return (%) as of
December 31 of Each Year (Retail Shares)
Best Quarter: |
6/30/20:
29.82% |
Worst Quarter: |
6/30/22: (20.70)% |
Average Annual Total Returns (for periods ended
12/31/22)
The
following table below shows the Fund’s Retail Shares’ annual returns and
long-term performance (before and after taxes) and the change in value of
broad-based market indexes over various periods ended December 31, 2022.
The table also shows the
average annual returns of the Fund’s Institutional Shares and R6 Shares, but it
does not show after-tax returns.
Baron Real Estate Fund
After-tax
returns are calculated using the highest individual federal marginal income tax
rate in effect at the time of each distribution and assumed sale, but they do
not include the impact of state and local taxes.
Your
actual after-tax returns depend on your own tax situation and may differ from
those shown. After-tax returns reflect past tax effects and are not predictive
of future tax effects. After-tax returns are not
relevant to investors who hold their Fund shares in a tax-deferred account
(including a 401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Average
Annual Total Returns for the periods ended December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
REAL ESTATE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Inception date:
12‑31‑09) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(28.61 |
)% |
|
|
7.38% |
|
|
|
9.99% |
|
|
|
12.66% |
|
Return
after taxes on distributions |
|
|
(29.27 |
)% |
|
|
5.23% |
|
|
|
8.70% |
|
|
|
11.57% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
(16.75 |
)% |
|
|
5.52% |
|
|
|
8.05% |
|
|
|
10.65% |
|
Institutional Shares (Inception date:
12‑31‑09) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(28.44 |
)% |
|
|
7.65% |
|
|
|
10.28% |
|
|
|
12.94% |
|
R6 Shares* (Inception date:
1‑29‑16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(28.44 |
)% |
|
|
7.66% |
|
|
|
10.28% |
|
|
|
12.94% |
|
MSCI
USA IMI Extended Real Estate Index (reflects no deduction for fees,
expenses or taxes) |
|
|
(23.84 |
)% |
|
|
4.73% |
|
|
|
8.59% |
|
|
|
10.20% |
|
MSCI
US REIT Index (reflects no deduction for fees, expenses or taxes) |
|
|
(25.37 |
)% |
|
|
2.48% |
|
|
|
5.20% |
|
|
|
7.75% |
|
* |
|
Performance for the R6 Shares prior to
January 29, 2016 is based on the performance of the Institutional Shares.
|
The
MSCI USA IMI Extended Real Estate Index Net USD is a custom index calculated by
MSCI for, and as requested by, BAMCO. The index includes real estate and real
estate-related GICS classification securities. The MSCI US REIT Index Net USD is
a free float‑adjusted market capitalization index that measures the performance
of all equity REITs in the US equity market, except for specialty equity REITs
that do not generate a majority of their revenue and income from real estate
rental and leasing operations.
Baron Real Estate Fund
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Jeffrey A.
Kolitch has been the portfolio manager of the Fund since its inception on
December 31, 2009. Mr. Kolitch has worked at the Adviser as an analyst
since September of 2005.
Purchase and Sale of Fund
Shares
Shares
may be purchased only on days that the New York Stock Exchange is open for
trading.
|
|
|
|
|
| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
Retail
Shares |
|
$2,000 |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Automatic Investment Plan |
|
$500 (with subsequent minimum investments of
$50 per month until your investment has reached $2,000.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds® website
purchases |
|
$2,000 |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
|
|
| |
Institutional
Shares |
|
$1,000,000 (Employees of the Adviser and its
affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and nonqualified) are not subject to the
eligibility requirements for Institutional Shares.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds® website
purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
Baron Real Estate Fund
|
|
|
|
|
| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
R6
Shares |
|
$5,000,000 (There is no minimum initial
investment for qualified retirement plans; however, the shares must be
held through plan-level or omnibus accounts held on the books of the
Fund.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds® website
purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
You
Can Purchase or Redeem Shares By:
1. |
|
Mailing a request to
Baron Funds®, P.O.
Box 219946, Kansas City, MO 64121-9946 or by overnight mail to: Baron
Funds®,
430 West 7th Street, Kansas City, MO 64105-1514; |
3. |
|
Calling
1-800-442-3814; |
4. |
|
Visiting the Baron
Funds® website
www.BaronFunds.com;
or |
5. |
|
Through a broker, dealer
or other financial intermediary that may charge you a
fee. |
The
Fund is not for short-term traders who intend to purchase and then sell their
Fund shares within a 90 day period. If the Adviser reasonably believes that a
person is not a long-term investor, it will attempt to prohibit that person from
making additional investments in the Fund.
Tax Information
Distributions
of the Fund’s net investment income (other than “qualified dividend income”) and
distributions of net short-term capital gains will be taxable to you as ordinary
income. Distributions of the Fund’s net capital gains reported as capital gain
dividends by the Fund will be taxable to you as long-term capital gains,
regardless of the length of time you have held shares of the Fund. If you are
investing through a tax-deferred arrangement, such as a 401(k) plan or an
individual retirement account, you may be subject to federal income tax on
withdrawals from tax-deferred arrangement at a later date.
Baron Real Estate Fund
Financial Intermediary
Compensation
If
you purchase Retail or Institutional Shares of the Fund through a broker, dealer
or other financial intermediary (such as a bank or financial adviser), the Fund,
Baron Capital, Inc., the Fund’s distributor, BAMCO or their affiliates may pay
the intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker, dealer or
other financial intermediary, including your salesperson, to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
Baron Emerging Markets
Fund
Investment Goal
The
investment goal of Baron Emerging Markets Fund® (the “Fund”) is capital
appreciation.
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you would pay if you bought and
held shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table
and example below.
Annual Fund Operating Expenses
(Expenses
that you pay each year as a percentage of the value of your investment)
|
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|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Management Fee |
|
|
Distribution (12b‑1) Fee |
|
|
Other Expenses |
|
|
Total Annual Fund Operating Expenses |
|
BARON
EMERGING MARKETS FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
1.00% |
|
|
|
0.25% |
|
|
|
0.13% |
|
|
|
1.38% |
|
Institutional
Shares |
|
|
1.00% |
|
|
|
0.00% |
|
|
|
0.12% |
|
|
|
1.12% |
|
R6
Shares |
|
|
1.00% |
|
|
|
0.00% |
|
|
|
0.13% |
|
|
|
1.13% |
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
EMERGING MARKETS FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
140 |
|
|
$ |
437 |
|
|
$ |
755 |
|
|
$ |
1,657 |
|
Institutional
Shares |
|
$ |
114 |
|
|
$ |
356 |
|
|
$ |
617 |
|
|
$ |
1,363 |
|
R6
Shares |
|
$
|
115
|
|
|
$
|
359
|
|
|
$ |
622 |
|
|
$ |
1,375 |
|
Portfolio
Turnover. The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes for Fund
Baron Emerging Markets
Fund
shareholders.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, affect the Fund’s performance. During the most recent fiscal
year ended December 31, 2022, the Fund’s portfolio turnover rate was
43.74% of the average value of its
portfolio.
Investments, Risks, and
Performance
Principal Investment Strategies of the Fund
The
Fund is a diversified fund that, under normal circumstances, invests 80% of its
net assets in equity securities in the form of common stock of growth companies
domiciled, headquartered or whose primary business activities or principal
trading markets are in developing countries. A developing country is a country
included in the MSCI Emerging Markets (EM) Index and other countries determined
by the Adviser to be developing countries based on classifications made by the
International Monetary Fund or on country characteristics similar to those of
the countries in the EM Index. The Fund may invest up to 20% of its net assets
in developed countries and in frontier countries as defined by the MSCI Frontier
Markets (FM) Index. The Fund’s investments will be in at least three different
countries. The Fund may purchase securities of companies of any market
capitalization. The Adviser seeks to invest in businesses it believes have
significant opportunities for growth, sustainable competitive advantages,
exceptional management, and an attractive valuation.
The
Fund’s investments in developing countries generally are traded in currencies
other than U.S. dollars, so the Adviser buys and sells foreign currencies to
facilitate transactions in portfolio securities. The Adviser usually does not
hedge against possible fluctuations in exchange rates, but exposure to a
particular currency that the Adviser believes is overvalued may be hedged if the
Fund has a substantial position in securities traded in that currency. The Fund
may buy and sell currencies for cash at current exchange rates, or using an
agreement to purchase or sell a specified currency at a specified future date or
within a specified time period, at a price set at the time of the contract.
The
investment policy of the Fund relating to the types of securities in which 80%
of the Fund’s assets must be invested may be changed by the Fund’s Board of
Trustees without shareholder approval upon at least 60 days’ notice.
Principal Risks of Investing in the Fund
Non-U.S. Securities. Investing in
non-U.S. securities may involve additional risks to those inherent in investing
in U.S. securities, including exchange rate fluctuations, political or economic
instability, the imposition of exchange controls, expropriation, limited
disclosure and illiquid markets.
Baron Emerging Markets
Fund
Developing Countries. The Fund
invests in developing countries, which include countries in the MSCI Emerging
Markets (EM) Index and other countries determined by the Adviser to be
developing countries based on classifications made by the International Monetary
Fund or on country characteristics similar to those of the countries in the EM
Index. Investments in developing countries are subject to all of the risks of
non-U.S. investing generally, and have additional heightened risks due to a lack
of established legal, political, business and social frameworks to support
securities markets, including: delays in settling portfolio securities
transactions; currency and capital controls; greater sensitivity to interest
rate changes; pervasiveness of corruption and crime; currency exchange rate
volatility; and inflation, deflation or currency
devaluation.
Currency. This refers to a decline
in the value of a foreign currency versus the U.S. dollar, which reduces the
dollar value of securities denominated in that currency. The overall impact on
the Fund’s holdings can be significant, unpredictable and long-lasting,
depending on the currencies represented in the portfolio and how each one
appreciates or depreciates in relation to the U.S. dollar and whether currency
positions are hedged. Under normal conditions, the Fund does not engage in
extensive foreign currency hedging programs. Further, because exchange rate
movements are volatile, the Fund’s attempts at hedging could be unsuccessful,
and it may not be possible to effectively hedge the currency risks of many
developing countries.
Risks Associated with China and Hong
Kong. The Chinese government exercises significant control
over China’s economy through its industrial policies, monetary policy,
management of currency exchange rates, and management of the payment of foreign
currency-denominated obligations. Changes in these policies could adversely
impact affected industries or companies in China. China’s economy, particularly
its export-oriented industries, may be adversely impacted by trade or political
disputes with China’s major trading partners, including the U.S. The United
States has imposed tariffs and other trade barriers on Chinese exports, has
restricted sales of certain categories of goods to China, and has established
barriers to investments in China. Trade disputes may adversely affect the
economies of the United States and its trading partners, as well as companies
directly or indirectly affected and financial markets generally. In addition,
the Chinese government is involved in a longstanding dispute with Taiwan that
has included threats of invasion. If the political climate between the United
States and China does not improve or continues to deteriorate, if China were to
attempt unification of Taiwan by force, or if other geopolitical conflicts
develop or get worse, economies, markets and individual securities may be
severely affected both regionally and globally, and the value of the Fund’s
assets may go down. In addition, as its consumer class continues to grow,
China’s domestically oriented industries may be especially sensitive to changes
in government policy and investment cycles. If China were to exert its authority
so as to alter the economic,
Baron Emerging Markets
Fund
political
or legal structures or the existing social policy of Hong Kong, investor and
business confidence in Hong Kong could be negatively affected and have an
adverse effect on the Fund’s
investments.
Risks Associated with Investing in Chinese Companies
through Variable Interest Entities. The Fund may obtain
exposure to companies based or operated in China by investing through legal
structures known as variable interest entities (“VIEs”). Instead of directly
owning the equity securities of a Chinese company, a VIE enters into service and
other contracts with the Chinese company. Although the VIE has no equity
ownership of the Chinese company, the contractual arrangements permit the VIE to
consolidate the Chinese company into its financial statements. VIE investments
are subject to the risk that any breach of these contractual arrangements will
be subject to Chinese law and jurisdiction, that Chinese law may be interpreted
or change in a way that affects the enforceability of the VIE’s arrangements, or
that contracts between the Chinese company and the VIE may otherwise not be
enforceable under Chinese
law.
Risks of Emphasizing a Region, Country, Sector or
Industry. If the Fund has invested a higher percentage of its
total assets in a particular region, country, sector or industry, changes
affecting that region, country, sector or industry may have a significant impact
on the performance of the Fund’s overall
portfolio.
Frontier Countries. The Fund’s
investments in frontier countries, which include countries in the MSCI Frontier
Markets (FM) Index, are subject to all of the risks of non-U.S. investing
generally and the risks of investing in developing countries, except that such
risks are greater in frontier countries.
Growth Investing. Growth stocks can
react differently to issuer, political, market and economic developments than
the market as a whole and other types of stocks. Growth stocks tend to be more
expensive relative to their earnings or assets compared to other types of
stocks. As a result, because growth stocks tend to be sensitive to changes in
their earnings and to increasing interest rates and inflation, they tend to be
more volatile than other types of stocks. In response, from time to time, growth
investing as an investment style may go out of favor with
investors.
General Stock Market. Fund losses may be incurred due to declines in one or
more markets in which Fund investments are made. These
declines may be the result of, among other things, political, regulatory,
market, economic or social developments affecting the relevant market(s). In
addition, turbulence as has recently been experienced, caused, among other
reasons, by increased inflation, tightening monetary policy and interest rate
increases by the US Federal Reserve or similar international bodies, and reduced
liquidity in financial markets may continue to negatively affect many issuers,
which could have an adverse effect on your Fund investment. Events involving
limited liquidity, defaults, non-performance or
other
Baron Emerging Markets
Fund
adverse
developments that affect one industry, such as the financial services industry,
or concerns or rumors about any events of these kinds, have in the past and may
in the future lead to market-wide liquidity problems, may spread to other
industries, and could negatively affect the value and liquidity of the Fund’s
investments. Global economies and financial markets are increasingly
interconnected, and conditions and events in one country, region or financial
market, such as Russia’s invasion of Ukraine in February 2022 and the world-wide
response to it, have and may continue to adversely impact issuers and markets
worldwide. The coronavirus disease 2019 (COVID-19) global pandemic and the
aggressive responses taken by many governments or voluntarily imposed by private
parties, including closing borders, restricting travel and imposing prolonged
quarantines or similar restrictions, as well as the closure of, or
operational changes to, many retail and other businesses, have had negative
impacts, and in many cases severe negative impacts, on markets worldwide. It is
not known how long such impacts, or any future impacts of other significant
events described above, will or would last, but there could be a prolonged
period of global economic slowdown, which may impact your Fund investment.
Raising the ceiling on U.S. government debt has become increasingly politicized.
Any failure to increase the total amount that the U.S. government is authorized
to borrow could lead to a default on U.S. government obligations, with
unpredictable consequences for economies and markets in the U.S. and
elsewhere.
Small- and Mid-Sized Companies. The
Adviser believes there is more potential for capital appreciation in small- and
mid-sized companies, but there also may be more risk. Securities of small- and
mid-sized companies may not be well known to most investors, and the securities
may be less actively traded than those of large businesses. The securities of
small- and mid-sized companies may fluctuate in price more widely than the stock
market generally, and they may be more difficult to sell during market
downturns. Small- and mid-sized companies rely more on the skills of management
and on their continued tenure. Investing in small- and mid-sized companies
requires a long-term outlook and may require shareholders to assume more risk
and to have more patience than investing in the securities of larger, more
established companies.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund (Retail Shares) by showing changes in the Fund’s performance from year to
year and by showing how the Fund’s average annual returns for 1, 5, 10 years,
and since inception compare with those of a broad measure of market
performance. The Fund’s past performance
(before and after taxes) is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available online at www.BaronFunds.com/performance
or by calling 1-800-99BARON
(1‑800‑992‑2766).
Baron Emerging Markets
Fund
Year by Year Total Return (%) as of
December 31 of Each Year (Retail Shares)
Best Quarter: |
6/30/20:
26.56% |
Worst Quarter: |
3/31/20: (25.07)% |
Average Annual Total Returns (for periods ended
12/31/22)
The
following table below shows the Fund’s Retail Shares’ annual returns and
long-term performance (before and after taxes) and the change in value of
broad-based market indexes over various periods ended December 31, 2022.
The table also shows the
average annual returns of the Fund’s Institutional Shares and R6 Shares, but it
does not show after-tax returns.
After-tax
returns are calculated using the highest individual federal marginal income tax
rate in effect at the time of each distribution and assumed sale, but they do
not include the impact of state and local taxes.
Your
actual after-tax returns depend on your own tax situation and may differ from
those shown. After-tax returns reflect past tax effects and are not predictive
of future tax effects. After-tax returns are not
relevant to investors who hold their Fund shares in a tax-deferred account
(including a
401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Baron Emerging Markets
Fund
Average
Annual Total Returns for the periods ended December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
EMERGING MARKETS FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Inception date:
12‑31‑10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(25.99 |
)% |
|
|
(2.95 |
)% |
|
|
2.83% |
|
|
|
2.51% |
|
Return
after taxes on distributions |
|
|
(25.99 |
)% |
|
|
(2.99 |
)% |
|
|
2.82% |
|
|
|
2.47% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
(15.38 |
)% |
|
|
(2.15 |
)% |
|
|
2.29% |
|
|
|
2.02% |
|
Institutional Shares (Inception date:
12‑31‑10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(25.82 |
)% |
|
|
(2.70 |
)% |
|
|
3.10% |
|
|
|
2.77% |
|
R6 Shares* (Inception date:
1‑29‑16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(25.81 |
)% |
|
|
(2.69 |
)% |
|
|
3.10% |
|
|
|
2.77% |
|
MSCI
EM (Emerging Markets) Index (reflects no deduction for fees or
expenses) |
|
|
(20.09 |
)% |
|
|
(1.40 |
)% |
|
|
1.44% |
|
|
|
0.89% |
|
MSCI
EM (Emerging Markets) IMI Growth Index (reflects no deduction for fees or
expenses) |
|
|
(23.88 |
)% |
|
|
(1.06 |
)% |
|
|
2.65% |
|
|
|
1.90% |
|
* |
|
Performance for the R6 Shares prior to
January 29, 2016 is based on the performance of the Institutional
Shares. |
The
MSCI EM (Emerging Markets) Index Net USD and the MSCI EM (Emerging Markets) IMI
Growth Index Net USD are unmanaged, free float-adjusted market capitalization
weighted indexes. The MSCI EM (Emerging Markets) Index Net USD is designed to
measure the equity market performance of large- and mid-cap securities in
emerging markets. The MSCI EM (Emerging Markets) IMI Growth Index Net USD is
designed to measure the equity market performance of large-, mid-, and small-cap
securities in the emerging markets. The MSCI EM (Emerging Markets) IMI Growth
Index Net USD screens for growth-style securities.
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Michael Kass has
been the portfolio manager of the Fund since its inception on December 31,
2010. Mr. Kass has worked at the Adviser as an analyst since November of
2007.
Baron Emerging Markets
Fund
Purchase and Sale of Fund
Shares
Shares
may be purchased only on days that the New York Stock Exchange is open for
trading.
|
|
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|
|
| |
|
|
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|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
Retail
Shares |
|
$2,000 |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Automatic Investment Plan |
|
$500 (with subsequent minimum investments of
$50 per month until your investment has reached $2,000.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
$2,000 |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
|
|
| |
Institutional
Shares |
|
$1,000,000 (Employees of the Adviser and its
affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and nonqualified) are not subject to the
eligibility requirements for Institutional Shares.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
Baron Emerging Markets
Fund
|
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| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
|
|
| |
R6
Shares |
|
$5,000,000 (There is no minimum initial
investment for qualified retirement plans; however, the shares must be
held through plan-level or omnibus accounts held on the books of the
Fund.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
You
Can Purchase or Redeem Shares By:
1. |
|
Mailing a request to
Baron Funds®, P.O.
Box 219946, Kansas City, MO 64121-9946 or by overnight mail to: Baron
Funds®, 430 West
7th Street, Kansas City, MO 64105-1514; |
3. |
|
Calling
1-800-442-3814; |
4. |
|
Visiting the Baron
Funds® website
www.BaronFunds.com;
or |
5. |
|
Through a broker, dealer
or other financial intermediary that may charge you a
fee. |
The
Fund is not for short-term traders who intend to purchase and then sell their
Fund shares within a 90 day period. If the Adviser reasonably believes that a
person is not a long-term investor, it will attempt to prohibit that person from
making additional investments in the Fund.
Tax Information
Distributions
of the Fund’s net investment income (other than “qualified dividend income”) and
distributions of net short-term capital gains will be taxable to you as ordinary
income. Distributions of the Fund’s net capital gains reported as capital gain
dividends by the Fund will be taxable to you as long-term capital gains,
regardless of the length of time you have held shares of the Fund. If you are
investing through a tax-deferred arrangement, such as a 401(k) plan or an
individual retirement account, you may be subject to federal income tax on
withdrawals from tax-deferred arrangement at a later date.
Baron Emerging Markets
Fund
Financial Intermediary
Compensation
If
you purchase Retail or Institutional Shares of the Fund through a broker, dealer
or other financial intermediary (such as a bank or financial adviser), the Fund,
Baron Capital, Inc., the Fund’s distributor, BAMCO or their affiliates may pay
the intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker, dealer or
other financial intermediary, including your salesperson, to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
Baron Global Advantage
Fund
Investment Goal
The
investment goal of Baron Global Advantage Fund® (the “Fund”) is capital
appreciation.
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you would pay if you bought and
held shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table
and example below.
Annual Fund Operating Expenses
(Expenses
that you pay each year as a percentage of the value of your investment)
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| |
|
|
Manage- ment Fee |
|
|
Distribu- tion (12b-1) Fee |
|
|
Other Expenses |
|
|
Total Other Expenses |
|
|
Total Annual Fund Operating Expenses1 |
|
|
Expense Reimburse- ments |
|
|
Total Annual Fund Operating Expenses After Expense Reimburse- ments1 |
|
|
Oper- ating Expenses |
|
|
Interest Expenses |
|
BARON
GLOBAL ADVANTAGE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
0.85% |
|
|
|
0.25% |
|
|
|
0.09% |
|
|
|
0.01% |
|
|
|
0.10% |
|
|
|
1.20% |
|
|
|
(0.04 |
)% |
|
|
1.16% |
|
Institutional
Shares |
|
|
0.85% |
|
|
|
0.00% |
|
|
|
0.08% |
|
|
|
0.01% |
|
|
|
0.09% |
|
|
|
0.94% |
|
|
|
(0.03 |
)% |
|
|
0.91% |
|
R6
Shares |
|
|
0.85% |
|
|
|
0.00% |
|
|
|
0.08% |
|
|
|
0.02% |
|
|
|
0.10% |
|
|
|
0.95% |
|
|
|
(0.03 |
)% |
|
|
0.92% |
|
1 |
|
BAMCO, Inc. (“BAMCO” or the “Adviser”)
has agreed that, pursuant to a contract with an 11‑year term terminating
on August 29,
2033, it will reimburse certain expenses of the Fund,
limiting net annual operating expenses (portfolio transaction costs,
interest, dividend, acquired fund fees and expenses and extraordinary
expenses are not subject to the operating expense limitation) to 1.15% of
average daily net assets of Retail Shares, 0.90% of average daily net
assets of Institutional Shares, and 0.90% of average daily net assets of
R6 Shares. Only the Board of Trustees of the Fund may terminate the
expense reimbursement agreement prior to its termination date.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same.
Baron Global Advantage
Fund
Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
GLOBAL ADVANTAGE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
118 |
|
|
$ |
368 |
|
|
$ |
638 |
|
|
$ |
1,409 |
|
Institutional
Shares |
|
$ |
93 |
|
|
$ |
290 |
|
|
$ |
504 |
|
|
$ |
1,120 |
|
R6
Shares |
|
$ |
94 |
|
|
$ |
293 |
|
|
$ |
509 |
|
|
$ |
1,131 |
|
Portfolio
Turnover. The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes for Fund shareholders. These costs, which
are not reflected in Total Annual Fund Operating Expenses or in the example,
affect the Fund’s performance. During the most recent fiscal year ended
December 31, 2022, the Fund’s portfolio turnover rate was 11.50% of the average value of its
portfolio.
Investments, Risks, and
Performance
Principal Investment Strategies of the Fund
The
Fund is a diversified fund that, under normal circumstances, invests primarily
in equity securities in the form of common stock of established and emerging
markets companies located throughout the world, with capitalizations within the
range of companies included in the MSCI ACWI Index Net USD. At all times, the
Fund will have investments in equity securities of companies in at least three
countries outside of the U.S. Under normal conditions, at least 40% of the
Fund’s net assets will be invested in stocks of companies outside the U.S. (at
least 30% if foreign market conditions are not favorable). The Adviser seeks to
invest in businesses it believes have significant opportunities for growth,
sustainable competitive advantages, exceptional management, and an attractive
valuation.
Principal Risks of Investing in the Fund
Non-U.S. Securities. Investing in
non-U.S. securities may involve additional risks to those inherent in investing
in U.S. securities, including exchange rate fluctuations, political or economic
instability, the imposition of exchange controls, expropriation, limited
disclosure and illiquid markets.
Developing Countries. The Fund
invests in developing countries, which include countries in the MSCI Emerging
Markets (EM) Index, countries in the MSCI Frontier Markets (FM) Index and other
countries determined by the Adviser to be developing
Baron Global Advantage
Fund
countries
based on classifications made by the International Monetary Fund or on country
characteristics similar to those of the countries in the EM and FM Indexes.
Investments in developing countries are subject to all of the risks of non-U.S.
investing generally, and have additional heightened risks due to a lack of
established legal, political, business and social frameworks to support
securities markets, including: delays in settling portfolio securities
transactions; currency and capital controls; greater sensitivity to interest
rate changes; pervasiveness of corruption and crime; currency exchange rate
volatility; and inflation, deflation or currency devaluation. These risks are
greater for countries in the FM
Index.
Currency. This refers to a decline
in the value of a foreign currency versus the U.S. dollar, which reduces the
dollar value of securities denominated in that currency. The overall impact on
the Fund’s holdings can be significant, unpredictable and long-lasting,
depending on the currencies represented in the portfolio and how each one
appreciates or depreciates in relation to the U.S. dollar and whether currency
positions are hedged. Under normal conditions, the Fund does not engage in
extensive foreign currency hedging programs. Further, because exchange rate
movements are volatile, the Fund’s attempts at hedging could be unsuccessful,
and it may not be possible to effectively hedge the currency risks of many
developing countries.
Risks Associated with China and Hong
Kong. The Chinese government exercises significant control
over China’s economy through its industrial policies, monetary policy,
management of currency exchange rates, and management of the payment of foreign
currency-denominated obligations. Changes in these policies could adversely
impact affected industries or companies in China. China’s economy, particularly
its export-oriented industries, may be adversely impacted by trade or political
disputes with China’s major trading partners, including the U.S. The United
States has imposed tariffs and other trade barriers on Chinese exports, has
restricted sales of certain categories of goods to China, and has established
barriers to investments in China. Trade disputes may adversely affect the
economies of the United States and its trading partners, as well as companies
directly or indirectly affected and financial markets generally. In addition,
the Chinese government is involved in a longstanding dispute with Taiwan that
has included threats of invasion. If the political climate between the United
States and China does not improve or continues to deteriorate, if China were to
attempt unification of Taiwan by force, or if other geopolitical conflicts
develop or get worse, economies, markets and individual securities may be
severely affected both regionally and globally, and the value of the Fund’s
assets may go down. In addition, as its consumer class continues to grow,
China’s domestically oriented industries may be especially sensitive to changes
in government policy and investment cycles. If China were to exert its authority
so as to alter the economic, political or legal structures or the existing
social policy of Hong Kong, investor and business confidence in Hong Kong could
be negatively affected and have an adverse effect on the Fund’s
investments.
Baron Global Advantage
Fund
Risks Associated with Investing in Chinese Companies
through Variable Interest Entities. The Fund may obtain
exposure to companies based or operated in China by investing through legal
structures known as variable interest entities (“VIEs”). Instead of directly
owning the equity securities of a Chinese company, a VIE enters into service and
other contracts with the Chinese company. Although the VIE has no equity
ownership of the Chinese company, the contractual arrangements permit the VIE to
consolidate the Chinese company into its financial statements. VIE investments
are subject to the risk that any breach of these contractual arrangements will
be subject to Chinese law and jurisdiction, that Chinese law may be interpreted
or change in a way that affects the enforceability of the VIE’s arrangements, or
that contracts between the Chinese company and the VIE may otherwise not be
enforceable under Chinese
law.
Risks of Emphasizing a Region, Country, Sector or
Industry. If the Fund has invested a higher percentage of its
total assets in a particular region, country, sector or industry, changes
affecting that region, country, sector or industry may have a significant impact
on the performance of the Fund’s overall portfolio. The economies and financial
markets of certain regions — such as Latin America, Asia, and Europe and the
Mediterranean region — can be interdependent and may all decline at the same
time.
Growth Investing. Growth stocks can
react differently to issuer, political, market and economic developments than
the market as a whole and other types of stocks. Growth stocks tend to be more
expensive relative to their earnings or assets compared to other types of
stocks. As a result, because growth stocks tend to be sensitive to changes in
their earnings and to increasing interest rates and inflation, they tend to be
more volatile than other types of stocks. In response, from time to time, growth
investing as an investment style may go out of favor with
investors.
Technology. Technology companies,
including internet-related and information technology companies, as well as
companies propelled by new technologies, may present the risk of rapid change
and product obsolescence, and their successes may be difficult to predict for
the long term. Some technology companies may be newly formed and have limited
operating history and experience. Technology companies may also be adversely
affected by changes in governmental policies, competitive pressures and changing
demand. The securities of these companies may also experience significant price
movements caused by disproportionate investor optimism or pessimism, with little
or no basis in the companies’ fundamentals or economic
conditions.
General Stock Market. Fund losses may be incurred due to declines in one or
more markets in which Fund investments are made. These declines
may be the result of, among other things, political, regulatory, market,
economic or social developments
Baron Global Advantage
Fund
affecting
the relevant market(s). In addition, turbulence as has recently been
experienced, caused, among other reasons, by increased inflation, tightening
monetary policy and interest rate increases by the US Federal Reserve or similar
international bodies, and reduced liquidity in financial markets may continue to
negatively affect many issuers, which could have an adverse effect on your Fund
investment. Events involving limited liquidity, defaults, non-performance or
other adverse developments that affect one industry, such as the financial
services industry, or concerns or rumors about any events of these kinds, have
in the past and may in the future lead to market-wide liquidity problems, may
spread to other industries, and could negatively affect the value and liquidity
of the Fund’s investments. Global economies and financial markets are
increasingly interconnected, and conditions and events in one country, region or
financial market, such as Russia’s invasion of Ukraine in February 2022 and the
world-wide response to it, have and may continue to adversely impact issuers and
markets worldwide. The coronavirus disease 2019 (COVID-19) global pandemic and
the aggressive responses taken by many governments or voluntarily imposed by
private parties, including closing borders, restricting travel and imposing
prolonged quarantines or similar restrictions, as well as the closure of, or
operational changes to, many retail and other businesses, have had negative
impacts, and in many cases severe negative impacts, on markets worldwide. It is
not known how long such impacts, or any future impacts of other significant
events described above, will or would last, but there could be a prolonged
period of global economic slowdown, which may impact your Fund investment.
Raising the ceiling on U.S. government debt has become increasingly politicized.
Any failure to increase the total amount that the U.S. government is authorized
to borrow could lead to a default on U.S. government obligations, with
unpredictable consequences for economies and markets in the U.S. and
elsewhere.
Small- and Mid-Sized Companies. The
Adviser believes there is more potential for capital appreciation in small- and
mid-sized companies, but there also may be more risk. Securities of small- and
mid-sized companies may not be well known to most investors, and the securities
may be less actively traded than those of large businesses. The securities of
small- and mid-sized companies may fluctuate in price more widely than the stock
market generally, and they may be more difficult to sell during market
downturns. Small- and mid-sized companies rely more on the skills of management
and on their continued tenure. Investing in small- and mid-sized companies
requires a long-term outlook and may require shareholders to assume more risk
and to have more patience than investing in the securities of larger, more
established companies.
Performance
The following bar
chart and table provide some indication of the risks of investing in the Fund
(Retail Shares) by showing changes in the Fund’s performance from year to
year
Baron Global Advantage
Fund
and by showing how the Fund’s
average annual returns for 1, 5, 10 years, and since inception compare
with those of a broad measure of market performance.
The
Fund’s past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. Updated
performance information is available online at www.BaronFunds.com/performance
or by calling 1-800-99BARON
(1‑800‑992‑2766).
Year by Year Total Return (%) as of
December 31 of Each Year (Retail Shares)
Best Quarter: |
6/30/20:
46.30% |
Worst Quarter: |
6/30/22: (32.39)% |
Average Annual Total Returns (for periods ended
12/31/22)
The
following table below shows the Fund’s Retail Shares’ annual returns and
long-term performance (before and after taxes) and the change in value of
broad-based market indexes over various periods ended December 31, 2022.
The table also shows the
average annual returns of the Fund’s Institutional Shares and R6 Shares, but it
does not show after-tax returns.
After-tax
returns are calculated using the highest individual federal marginal income tax
rate in effect at the time of each distribution and assumed sale, but they do
not include the impact of state and local taxes.
Your
actual after-tax returns depend on your own tax situation and may differ from
those shown. After-tax returns reflect past tax effects and are not predictive
of future tax effects. After-tax returns are
not relevant to investors who hold their Fund shares
Baron Global Advantage
Fund
in a tax-deferred account
(including a
401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Average
Annual Total Returns for the periods ended December 31, 2022
|
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|
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|
|
|
|
|
|
| |
|
|
1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
GLOBAL ADVANTAGE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Inception date:
4‑30‑12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(51.69 |
)% |
|
|
3.95% |
|
|
|
9.18% |
|
|
|
8.99% |
|
Return
after taxes on distributions |
|
|
(51.90 |
)% |
|
|
3.86% |
|
|
|
9.13% |
|
|
|
8.94% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
(30.43 |
)% |
|
|
3.07% |
|
|
|
7.56% |
|
|
|
7.43% |
|
Institutional Shares (Inception date:
4‑30‑12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(51.57 |
)% |
|
|
4.21% |
|
|
|
9.43% |
|
|
|
9.23% |
|
R6 Shares* (Inception date:
8‑31‑16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(51.58 |
)% |
|
|
4.21% |
|
|
|
9.44% |
|
|
|
9.24% |
|
MSCI
ACWI Index (reflects no deduction for fees or expenses) |
|
|
(18.36 |
)% |
|
|
5.23% |
|
|
|
7.98% |
|
|
|
7.95% |
|
MSCI
ACWI Growth Index (reflects no deduction for fees or expenses) |
|
|
(28.61 |
)% |
|
|
6.37% |
|
|
|
9.20% |
|
|
|
8.95% |
|
* |
|
Performance for the R6 Shares prior to
August 31, 2016 is based on the performance of the Institutional
Shares. |
The
MSCI ACWI Index Net USD and the MSCI ACWI Growth Index Net USD are unmanaged,
free float-adjusted market capitalization weighted indexes. The MSCI ACWI Index
Net USD and the MSCI ACWI Growth Index Net USD are designed to measure the
equity market performance of large- and mid‑cap securities across developed and
emerging markets, including the United States. The MSCI ACWI Growth Index Net
USD screens for growth-style securities.
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Alex Umansky has
been the portfolio manager of the Fund since its inception on April 30,
2012. Mr. Umansky has worked at the Adviser as a portfolio manager since
November of 2011.
Baron Global Advantage
Fund
Purchase and Sale of Fund
Shares
Shares
may be purchased only on days that the New York Stock Exchange is open for
trading.
|
|
|
|
|
| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
Retail
Shares |
|
$2,000 |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Automatic Investment Plan |
|
$500 (with subsequent minimum investments of
$50 per month until your investment has reached $2,000.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
$2,000 |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
|
|
| |
Institutional
Shares |
|
$1,000,000 (Employees of the Adviser and its
affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and nonqualified) are not subject to the
eligibility requirements for Institutional Shares.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
Baron Global Advantage
Fund
|
|
|
|
|
| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
|
|
| |
R6
Shares |
|
$5,000,000 (There is no minimum initial
investment for qualified retirement plans; however, the shares must be
held through plan-level or omnibus accounts held on the books of the
Fund.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
You
Can Purchase or Redeem Shares By:
1. |
|
Mailing a request to
Baron Funds®, P.O.
Box 219946, Kansas City, MO 64121‑9946 or by overnight mail to: Baron
Funds®, 430 West
7th Street, Kansas City, MO 64105-1514; |
3. |
|
Calling
1-800-442-3814; |
4. |
|
Visiting the Baron
Funds® website
www.BaronFunds.com;
or |
5. |
|
Through a broker, dealer
or other financial intermediary that may charge you a
fee. |
The
Fund is not for short-term traders who intend to purchase and then sell their
Fund shares within a 90 day period. If the Adviser reasonably believes that a
person is not a long-term investor, it will attempt to prohibit that person from
making additional investments in the Fund.
Tax Information
Distributions
of the Fund’s net investment income (other than “qualified dividend income”) and
distributions of net short-term capital gains will be taxable to you as ordinary
income. Distributions of the Fund’s net capital gains reported as capital gain
dividends by the Fund will be taxable to you as long-term capital gains,
regardless of the length of time you have held shares of the Fund. If you are
investing through a tax-deferred arrangement, such as a 401(k) plan or an
individual retirement account, you may be subject to federal income tax on
withdrawals from tax-deferred arrangement at a later date.
Baron Global
Advantage Fund
Financial Intermediary
Compensation
If
you purchase Retail or Institutional Shares of the Fund through a broker, dealer
or other financial intermediary (such as a bank or financial adviser), the Fund,
Baron Capital, Inc., the Fund’s distributor, BAMCO or their affiliates may pay
the intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker, dealer or
other financial intermediary, including your salesperson, to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
Baron Real Estate Income
Fund
Investment Goal
The
investment goal of Baron Real Estate Income Fund® (the “Fund”) is a
combination of capital appreciation and current income.
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you would pay if you bought and
held shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table
and example below.
Annual Fund Operating Expenses
(Expenses
that you pay each year as a percentage of the value of your investment)
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| |
|
|
Management Fee |
|
|
Distribution (12b‑1) Fee |
|
|
Other Expenses |
|
|
Total Annual Fund Operating Expenses |
|
|
Expense Reimburse ments |
|
|
Total Annual Fund Operating Expenses After Expense Reimburse ments1 |
|
BARON REAL
ESTATE INCOME FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
0.75% |
|
|
|
0.25% |
|
|
|
0.32% |
|
|
|
1.32% |
|
|
|
(0.27 |
)% |
|
|
1.05% |
|
Institutional
Shares |
|
|
0.75% |
|
|
|
0.00% |
|
|
|
0.21% |
|
|
|
0.96% |
|
|
|
(0.16 |
)% |
|
|
0.80% |
|
R6
Shares |
|
|
0.75% |
|
|
|
0.00% |
|
|
|
0.22% |
|
|
|
0.97% |
|
|
|
(0.17 |
)% |
|
|
0.80% |
|
1 |
|
BAMCO, Inc. (“BAMCO” or the “Adviser”)
has agreed that, pursuant to a contract with an 11-year term terminating
on August 29,
2033, it will reimburse certain expenses of the Fund,
limiting net annual operating expenses (portfolio transaction costs,
interest, dividend, acquired fund fees and expenses and extraordinary
expenses are not subject to the operating expense limitation) to 1.05% of
average daily net assets of Retail Shares, 0.80% of average daily net
assets of Institutional Shares, and 0.80% of average daily net assets of
R6 Shares. Only the Board of Trustees of the Fund may terminate the
expense reimbursement agreement prior to its termination date.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same, giving effect to the expense reimbursement agreement described
above. Although your
Baron Real Estate Income
Fund
actual
costs may be higher or lower, based on these assumptions your costs would be:
|
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|
|
|
|
|
|
|
|
|
|
|
|
| |
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
REAL ESTATE INCOME FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
107 |
|
|
$ |
334 |
|
|
$ |
579 |
|
|
$ |
1,283 |
|
Institutional
Shares |
|
$ |
82 |
|
|
$ |
255 |
|
|
$ |
444 |
|
|
$ |
990 |
|
R6
Shares |
|
$ |
82 |
|
|
$ |
255 |
|
|
$ |
444 |
|
|
$ |
990 |
|
Portfolio
Turnover. The Fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over”
its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes for Fund shareholders. These costs, which
are not reflected in Total Annual Fund Operating Expenses or in the example,
affect the Fund’s performance. During the most recent fiscal year ended December
31, 2022, the Fund’s portfolio turnover rate was 185.25% of the average value of its
portfolio.
Investments, Risks, and
Performance
Principal Investment Strategies of the Fund
The Fund is a non‑diversified fund that
under normal circumstances, invests at least 80% of its net assets in real
estate income-producing securities and other real estate securities of any
market capitalization, including common stocks and equity securities, debt and
preferred securities, non‑U.S. real estate income-producing securities, and any
other real estate-related yield securities, however, investments in non-U.S.
securities are limited to 35% of the Fund’s total assets at the time of
purchase. The Fund may invest in debt securities that have a
rating of, or equivalent to, at least “BBB” by S&P Global Ratings or “Baa”
by Moody’s Investors Services, Inc., or if unrated, are judged by the Adviser to
be of comparable quality. The Fund may invest up to 35% of its total assets in
such securities. Some debt securities purchased by the Fund may have very long
maturities. The length of time remaining until maturity is one factor that the
Adviser considers in purchasing a particular debt
security.
The
Fund is likely to maintain a significant portion of its assets in real estate
investment trusts (“REITs”). REITs pool money to invest in properties
(“equity REITs”) or mortgages (“mortgage REITs”), and their revenue primarily
consists of rent derived from owned, income producing real estate properties,
and capital gains from the sale of such properties. The Fund generally
invests in equity REITs.
The
Adviser seeks to invest in businesses it believes have sustainable competitive
advantages, exceptional management, opportunities for growth, and an attractive
valuation.
Baron Real Estate Income
Fund
Principal Risks of Investing in the Fund
Real Estate Industry. In addition to
general market conditions, the value of the Fund will be affected by the
strength of the real estate markets. Factors that could affect the value of the
Fund’s holdings include the following: overbuilding and increased competition;
increases in property taxes and operating expenses; declines in the value of
real estate; lack of availability of equity and debt financing to refinance
maturing debt; vacancies due to economic conditions and tenant bankruptcies;
losses due to costs resulting from natural disasters and/or environmental
contamination and its related clean‑up; changes in interest rates; changes in
zoning laws; casualty or condemnation losses; variations in rental income;
changes in neighborhood values; and functional obsolescence and appeal of
properties to tenants.
REIT. REITs generally are dependent
upon management skills and may not be diversified. REITs are also subject to
heavy cash flow dependency, defaults by borrowers and self-liquidation. In
addition, REITs could possibly fail to qualify for favorable tax treatment under
applicable tax law. Various factors may also adversely affect a borrower’s or a
lessee’s ability to meet its obligations to the REIT. In the event of a default
by a borrower or lessee, the REIT may experience delays in enforcing its rights
as a mortgagee or lessor and may incur substantial costs associated with
protecting its investments.
Interest Rate. The Fund is subject
to greater interest rate risk when compared to other stocks funds due to the
chance that periods of rising interest rates may cause REIT stock prices to
decline and the overall cost of borrowing to
increase.
Credit and Interest Rate. The market
value of debt securities is affected by changes in prevailing interest rates and
the perceived credit quality of the issuer. When prevailing interest rates fall
or perceived credit quality improves, the market value of the affected debt
securities generally rises. Conversely, when interest rates rise or perceived
credit quality weakens, the market value of the affected debt securities
generally declines. Recently, the U.S. Federal Reserve has been raising interest
rates from historically low levels. It may continue to raise interest rates. Any
additional interest rate increases in the future could cause the value of the
Fund’s holdings to decrease. The magnitude of these fluctuations will be greater
when the maturity of the debt securities is
longer.
Concentration. The Fund’s strategy
of concentrating in real estate income-producing and other real estate-related
companies means that its performance will be closely tied to the performance of
a particular market segment. The Fund’s concentration in these companies may
present more risks than if it were broadly diversified over numerous industries
and sectors of the economy. A downturn in these companies would have a larger
impact on the Fund than on a mutual fund that does
Baron Real Estate Income
Fund
not
concentrate in such companies. At times, the performance of these companies will
lag the performance of other industries or the broader market as a
whole.
Non‑Diversified Portfolio. The Fund
is non‑diversified, which means it may have a greater percentage of its assets
in a single issuer than a diversified fund. Because of this, a non‑diversified
fund may invest a greater percentage of its assets in fewer issuers, and the
performance of those issuers may have a greater effect on the performance of a
non‑diversified fund versus a diversified fund. Thus, a non‑diversified fund is
more likely to experience significant fluctuations in value, exposing the Fund
to a greater risk of loss in any given period than a diversified
fund.
Growth Investing. Growth stocks can
react differently to issuer, political, market and economic developments than
the market as a whole and other types of stocks. Growth stocks tend to be more
expensive relative to their earnings or assets compared to other types of
stocks. As a result, because growth stocks tend to be sensitive to changes in
their earnings and to increasing interest rates and inflation, they tend to be
more volatile than other types of stocks. In response, from time to time, growth
investing as an investment style may go out of favor with
investors.
General Stock Market. Fund losses may be incurred due to declines in one or
more markets in which Fund investments are made. These declines
may be the result of, among other things, political, regulatory, market,
economic or social developments affecting the relevant market(s). In addition,
turbulence as has recently been experienced, caused, among other reasons, by
increased inflation, tightening monetary policy and interest rate increases by
the US Federal Reserve or similar international bodies, and reduced liquidity in
financial markets may continue to negatively affect many issuers, which could
have an adverse effect on your Fund investment. Events involving limited
liquidity, defaults, non-performance or other adverse developments that affect
one industry, such as the financial services industry, or concerns or rumors
about any events of these kinds, have in the past and may in the future lead to
market-wide liquidity problems, may spread to other industries, and could
negatively affect the value and liquidity of the Fund’s investments. Global
economies and financial markets are increasingly interconnected, and conditions
and events in one country, region or financial market, such as Russia’s invasion
of Ukraine in February 2022 and the world-wide response to it, have and may
continue to adversely impact issuers and markets worldwide. The coronavirus
disease 2019 (COVID-19) global pandemic and the aggressive responses taken by
many governments or voluntarily imposed by private parties, including closing
borders, restricting travel and imposing prolonged quarantines or similar
restrictions, as well as the closure of, or operational changes to, many retail
and other businesses, have had negative impacts, and in many cases severe
negative impacts, on markets worldwide. It is not known how long such impacts,
or any future impacts of other significant events described above, will or would
last, but there could be a prolonged period
of
Baron Real Estate Income
Fund
global
economic slowdown, which may impact your Fund investment. Raising the ceiling on
U.S. government debt has become increasingly politicized. Any failure to
increase the total amount that the U.S. government is authorized to borrow could
lead to a default on U.S. government obligations, with unpredictable
consequences for economies and markets in the U.S. and
elsewhere.
Non‑U.S. Securities. Investing in
non‑U.S. securities may involve additional risks to those inherent in investing
in U.S. securities, including exchange rate fluctuations, political or economic
instability, the imposition of exchange controls, expropriation, limited
disclosure and illiquid markets.
Small- and Mid‑Sized Companies. The
Adviser believes there is more potential for capital appreciation in small- and
mid‑sized companies, but there also may be more risk. Securities of small- and
mid‑sized companies may not be well known to most investors, and the securities
may be less actively traded than those of large businesses. The securities of
small- and mid‑sized companies may fluctuate in price more widely than the stock
market generally, and they may be more difficult to sell during market
downturns. Small- and mid‑sized companies rely more on the skills of management
and on their continued tenure. Investing in small- and mid‑sized companies
requires a long-term outlook and may require shareholders to assume more risk
and to have more patience than investing in the securities of larger, more
established companies.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund (Retail Shares) by showing changes in the Fund’s performance from year to
year and by showing how the Fund’s annual returns for 1 and 5 years compared
with that of a broad measure of market performance.
The
Fund’s past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future.
Updated performance information is available online at www.BaronFunds.com/performance
or by calling 1‑800‑99BARON
(1‑800‑992‑2766).
Baron Real Estate Income
Fund
Total Return (%) for the year ended
December 31 (Retail Shares)
Best Quarter: |
3/31/19:
17.86% |
Worst Quarter: |
6/30/22: (18.43)% |
Annual Total Returns (for periods ended
12/31/22)
The
following table shows the Fund’s Retail Shares’ annual returns and long-term
performance (before and after taxes) and the change in value of broad-based
market indexes over various periods ended December 31, 2022. The table also shows the
average annual return of the Fund’s Institutional Shares and R6 Shares, but it
does not show after‑tax returns.
After‑tax
returns are calculated using the highest individual federal marginal income tax
rate in effect at the time of each distribution and assumed sale, but they do
not include the impact of state and local taxes.
Your
actual after‑tax returns depend on your own tax situation and may differ from
those shown. After‑tax returns reflect past tax effects and are not predictive
of future tax effects. After‑tax returns are not
relevant to investors who hold their Fund’s shares in a tax‑deferred account
(including a 401(k) or IRA or Coverdell account), or to investors that are
tax‑exempt.
Baron Real Estate Income
Fund
Average
Annual Total Returns for the periods ended December 31, 2022
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|
| |
|
|
1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
REAL ESTATE INCOME FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Inception date:
12‑29‑17) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(27.61 |
)% |
|
|
6.70% |
|
|
|
N/A |
|
|
|
6.70% |
|
Return
after taxes on distributions |
|
|
(28.00 |
)% |
|
|
6.21% |
|
|
|
N/A |
|
|
|
6.21% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
(16.16 |
)% |
|
|
5.12% |
|
|
|
N/A |
|
|
|
5.12% |
|
Institutional Shares (Inception date:
12‑29‑17) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(27.43 |
)% |
|
|
6.91% |
|
|
|
N/A |
|
|
|
6.91% |
|
R6 Shares (Inception date:
12‑29‑17) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(27.41 |
)% |
|
|
6.89% |
|
|
|
N/A |
|
|
|
6.89% |
|
MSCI
US REIT Index (reflects no deduction for fees, expenses or taxes) |
|
|
(25.37 |
)% |
|
|
2.48% |
|
|
|
N/A |
|
|
|
2.48% |
|
The
MSCI US REIT Index is an unmanaged, free float-adjusted market capitalization
index that measures the equity market performance of all equity REITs in the US
equity market, except for specialty equity REITs that do not generate a majority
of their revenue and income from real estate rental and leasing operations.
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Jeffrey A.
Kolitch has been the portfolio manager of the Fund since its inception on
December 29, 2017. Mr. Kolitch has worked at the Adviser as an analyst
since September of 2005.
Baron Real Estate Income
Fund
Purchase and Sale of Fund
Shares
Shares
may be purchased only on days that the New York Stock Exchange is open for
trading.
|
|
|
|
|
| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
Retail
Shares |
|
$2,000 |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Automatic Investment Plan |
|
$500 (with subsequent minimum investments of
$50 per month until your investment has reached $2,000.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
$2,000 |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
|
|
| |
Institutional
Shares |
|
$1,000,000 (Employees of the Adviser and its
affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and nonqualified) are not subject to the
eligibility requirements for Institutional Shares.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
Baron Real Estate Income
Fund
|
|
|
|
|
| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
|
|
| |
R6
Shares |
|
$5,000,000 (There is no minimum initial
investment for qualified retirement plans; however, the shares must be
held through plan-level or omnibus accounts held on the books of the
Fund.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
You
Can Purchase or Redeem Shares By:
1. |
|
Mailing a request to
Baron Funds®, P.O.
Box 219946, Kansas City, MO 64121-9946 or by overnight mail to: Baron
Funds®,
430 West 7th Street, Kansas City, MO 64105-1514; |
3. |
|
Calling
1‑800‑442‑3814; |
4. |
|
Visiting the Baron
Funds® website
www.BaronFunds.com;
or |
5. |
|
Through a broker, dealer
or other financial intermediary that may charge you a
fee. |
The
Fund is not for short-term traders who intend to purchase and then sell their
Fund shares within a 90 day period. If the Adviser reasonably believes that a
person is not a long-term investor, it will attempt to prohibit that person from
making additional investments in the Fund.
Tax Information
Distributions
of the Fund’s net investment income (other than “qualified dividend income”) and
distributions of net short-term capital gains will be taxable to you as ordinary
income. Distributions of the Fund’s net capital gains reported as capital gain
dividends by the Fund will be taxable to you as long-term capital gains,
regardless of the length of time you have held shares of the Fund. If you are
investing through a tax‑deferred arrangement, such as a 401(k) plan or an
individual retirement account, you may be subject to federal income tax on
withdrawals from tax‑deferred arrangement at a later date.
Baron Real Estate
Income Fund
Financial Intermediary
Compensation
If
you purchase Retail or Institutional Shares of the Fund through a broker, dealer
or other financial intermediary (such as a bank or financial adviser), the Fund,
Baron Capital, Inc., the Fund’s distributor, BAMCO or their affiliates may pay
the intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker, dealer or
other financial intermediary, including your salesperson, to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
Baron Health
Care Fund
Investment Goal
The
investment goal of Baron Health Care Fund® (the “Fund”) is capital
appreciation.
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you would pay if you bought and
held shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table
and example below.
Annual Fund Operating Expenses
(Expenses
that you pay each year as a percentage of the value of your investment)
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Management Fee |
|
|
Distribution (12b‑1) Fee |
|
|
Other Expenses |
|
|
Total Annual Fund Operating Expenses |
|
|
Expense Reimburse ments |
|
|
Total Annual Fund Operating Expenses After Expense Reimburse ments1 |
|
BARON
HEALTH CARE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
0.75% |
|
|
|
0.25% |
|
|
|
0.21% |
|
|
|
1.21% |
|
|
|
(0.11 |
)% |
|
|
1.10% |
|
Institutional
Shares |
|
|
0.75% |
|
|
|
0.00% |
|
|
|
0.15% |
|
|
|
0.90% |
|
|
|
(0.05 |
)% |
|
|
0.85% |
|
R6
Shares |
|
|
0.75% |
|
|
|
0.00% |
|
|
|
0.14% |
|
|
|
0.89% |
|
|
|
(0.04 |
)% |
|
|
0.85% |
|
1 |
|
BAMCO, Inc. (“BAMCO” or the “Adviser”)
has agreed that, pursuant to a contract with an 11-year term terminating
on August 29,
2033, it will reimburse certain expenses of the Fund,
limiting net annual operating expenses (portfolio transaction costs,
interest, dividend, acquired fund fees and expenses and extraordinary
expenses are not subject to the operating expense limitation) to 1.10% of
average daily net assets of Retail Shares, 0.85% of average daily net
assets of Institutional Shares, and 0.85% of average daily net assets of
R6 Shares. Only the Board of Trustees of the Fund may terminate the
expense reimbursement agreement prior to its termination date.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same, giving effect to the expense reimbursement agreement described
above. Although your
Baron Health
Care Fund
actual
costs may be higher or lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
HEALTH CARE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
112 |
|
|
$ |
350 |
|
|
$ |
606 |
|
|
$ |
1,340 |
|
Institutional
Shares |
|
$ |
87 |
|
|
$ |
271 |
|
|
$ |
471 |
|
|
$ |
1,049 |
|
R6
Shares |
|
$ |
87 |
|
|
$ |
271 |
|
|
$ |
471 |
|
|
$ |
1,049 |
|
Portfolio
Turnover. The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes for Fund shareholders.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, affect the Fund’s performance. During the most recent fiscal
year ended December 31, 2022, the Fund’s portfolio turnover rate was
71.55% of the average value of its
portfolio.
Investments, Risks, and
Performance
Principal Investment Strategies of the Fund
The Fund is a non‑diversified fund that
under normal circumstances, invests at least 80% of its net assets in equity
securities in the form of common stock of companies engaged in the research,
development, production, sale, delivery or distribution of products and services
related to the health care industry. The Adviser uses various
criteria to determine whether an issuer is engaged in activities related to the
health care industry, including whether: (1) the issuer derives 50% or more of
its revenues from activities in the health care industry; or (2) the issuer
devotes 50% or more of its assets to producing sales from the health care
industry. These companies may include, among others, pharmaceutical
companies, biotechnology companies, life sciences tools and services companies,
health care equipment companies, health care supplies companies, managed health
care companies, health care services companies, health care facilities, health
care distributors, and health care technology companies. The Fund strives to
invest in multiple subsectors of the health care industry. The Fund’s allocation
among the different subsectors of the health care industry will vary depending
upon the relative potential the Fund sees within each area. The Adviser seeks to
invest in businesses it believes have significant growth opportunities,
sustainable competitive advantages, exceptional management, and attractive
valuations. The Fund may purchase securities of companies of any market
capitalization and may invest in foreign stocks, however, investments in
non-U.S. securities are limited to 35% of the Fund’s total assets at the time of
purchase.
Baron Health
Care Fund
Principal Risks of Investing in the Fund
Health Care Sector. Investments in
health care companies are subject to a number of risks, including the adverse
impact of legislative actions and government regulations. These actions and
regulations can affect the approval process for patents, medical devices and
drugs, the funding of research and medical care programs, and the operation and
licensing of facilities and personnel. Biotechnology and related companies are
affected by patent considerations, intense competition, rapid technology change
and obsolescence, and regulatory requirements of various federal and state
agencies. In addition, some of these companies are relatively small and have
thinly traded securities, may not yet offer products or may offer a single
product, and may have persistent losses during a new product’s transition from
development to production, or erratic revenue patterns. The stock prices of
these companies are very volatile, particularly when their products are up for
regulatory approval and/or under regulatory scrutiny.
Concentration. The Fund’s strategy
of concentrating in health care and related companies means that its performance
will be closely tied to the performance of a particular market segment. The
Fund’s concentration in these companies may present more risks than if it were
broadly diversified over numerous industries and sectors of the economy. A
downturn in these companies would have a larger impact on the Fund than on a
mutual fund that does not concentrate in such companies. At times, the
performance of these companies will lag the performance of other industries or
the broader market as a whole.
Non‑Diversified Portfolio. The Fund
is non‑diversified, which means it may have a greater percentage of its assets
in a single issuer than a diversified fund. Because of this, a non‑diversified
fund may invest a greater percentage of its assets in fewer issuers, and the
performance of those issuers may have a greater effect on the performance of a
non‑diversified fund versus a diversified fund. Thus, a non‑diversified fund is
more likely to experience significant fluctuations in value, exposing the Fund
to a greater risk of loss in any given period than a diversified
fund.
Growth Investing. Growth stocks can
react differently to issuer, political, market and economic developments than
the market as a whole and other types of stocks. Growth stocks tend to be more
expensive relative to their earnings or assets compared to other types of
stocks. As a result, because growth stocks tend to be sensitive to changes in
their earnings and to increasing interest rates and inflation, they tend to be
more volatile than other types of stocks. In response, from time to time, growth
investing as an investment style may go out of favor with
investors.
General Stock Market. Fund losses may be incurred due to declines in one or
more markets in which Fund investments are made. These
declines may be the result of, among other things, political, regulatory,
market, economic or social developments
Baron Health
Care Fund
affecting
the relevant market(s). In addition, turbulence as has recently been
experienced, caused, among other reasons, by increased inflation, tightening
monetary policy and interest rate increases by the US Federal Reserve or similar
international bodies, and reduced liquidity in financial markets may continue to
negatively affect many issuers, which could have an adverse effect on your Fund
investment. Events involving limited liquidity, defaults, non-performance or
other adverse developments that affect one industry, such as the financial
services industry, or concerns or rumors about any events of these kinds, have
in the past and may in the future lead to market-wide liquidity problems, may
spread to other industries, and could negatively affect the value and liquidity
of the Fund’s investments. Global economies and financial markets are
increasingly interconnected, and conditions and events in one country, region or
financial market, such as Russia’s invasion of Ukraine in February 2022 and the
world-wide response to it, have and may continue to adversely impact issuers and
markets worldwide. The coronavirus disease 2019 (COVID-19) global pandemic and
the aggressive responses taken by many governments or voluntarily imposed by
private parties, including closing borders, restricting travel and imposing
prolonged quarantines or similar restrictions, as well as the closure of,
or operational changes to, many retail and other businesses, have had negative
impacts, and in many cases severe negative impacts, on markets worldwide. It is
not known how long such impacts, or any future impacts of other significant
events described above, will or would last, but there could be a prolonged
period of global economic slowdown, which may impact your Fund investment.
Raising the ceiling on U.S. government debt has become increasingly politicized.
Any failure to increase the total amount that the U.S. government is authorized
to borrow could lead to a default on U.S. government obligations, with
unpredictable consequences for economies and markets in the U.S. and
elsewhere.
Non‑U.S. Securities. Investing in non‑U.S. securities
may involve additional risks to those inherent in investing in U.S. securities,
including exchange rate fluctuations, political or economic instability, the
imposition of exchange controls, expropriation, limited disclosure and illiquid
markets.
Small- and Mid‑Sized Companies. The
Adviser believes there is more potential for capital appreciation in small- and
mid‑sized companies, but there also may be more risk. Securities of small- and
mid‑sized companies may not be well known to most investors, and the securities
may be less actively traded than those of large businesses. The securities of
small- and mid‑sized companies may fluctuate in price more widely than the stock
market generally, and they may be more difficult to sell during market
downturns. Small- and mid‑sized companies rely more on the skills of management
and on their continued tenure. Investing in small- and mid‑sized companies
requires a long-term outlook and may require shareholders to assume more risk
and to have more patience than investing in the securities of larger, more
established companies.
Baron Health
Care Fund
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund (Retail Shares) by showing the Fund’s performance from year to year and by
showing how the Fund’s annual returns for 1 year and since inception compared
with that of a broad measure of market performance.
The
Fund’s past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the
future. Updated performance information is available online
at www.BaronFunds.com/performance
or by calling 1-800-99BARON
(1‑800‑992‑2766).
Total Return (%) for the year ended December 31
(Retail Shares)
Best Quarter: |
6/30/20:
24.64% |
Worst Quarter: |
3/31/22: (10.03)% |
Average Annual Total Returns (for periods ended
12/31/2022)
The
following table shows the Fund’s Retail Shares’ annual returns and long-term
performance (before and after taxes) and the change in value of broad-based
market indexes over various periods ended December 31, 2022. The table also shows the
average annual return of the Fund’s Institutional Shares and R6 Shares, but it
does not show after-tax returns.
After-tax returns are
calculated using the highest individual federal marginal income tax rate in
effect at the time of each distribution and assumed sale, but they do not
include the impact of state and local
taxes.
Baron Health
Care Fund
Your
actual after-tax returns depend on your own tax situation and may differ from
those shown. After-tax returns reflect past tax effects and are not predictive
of future tax effects. After-tax returns are not
relevant to investors who hold their Fund’s shares in a tax-deferred account
(including a 401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Average
Annual Total Returns for the periods ended December 31, 2022
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| |
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|
1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
HEALTH CARE FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Inception date:
4‑30‑18) |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(17.10 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
13.61% |
|
Return
after taxes on distributions |
|
|
(17.10 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
13.39% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
(10.13 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
10.83% |
|
Institutional Shares (Inception date:
4‑30‑18) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(16.85 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
13.90% |
|
R6 Shares (Inception date:
4‑30‑18) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(16.90 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
13.90% |
|
Russell
3000 Health Care Index (reflects no deduction for fees, expenses or
taxes) |
|
|
(6.10 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
12.06% |
|
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
|
|
(18.11 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
10.22% |
|
The
Russell 3000 Health Care Index is an unmanaged index representative of companies
involved in medical services or health care in the Russell 3000 Index. The
S&P 500 Index is an unmanaged index of larger-cap companies.
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Neal Kaufman has
been the portfolio manager of the Fund since its inception on April 30,
2018. Mr. Kaufman has worked at the Adviser as an analyst since March of
2005.
Baron Health
Care Fund
Purchase and Sale of Fund
Shares
Shares
may be purchased only on days that the New York Stock Exchange is open for
trading.
|
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| |
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|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
Retail
Shares |
|
$2,000 |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Automatic Investment Plan |
|
$500 (with subsequent minimum investments of
$50 per month until your investment has reached $2,000.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
$2,000 |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
|
|
| |
Institutional
Shares |
|
$1,000,000 (Employees of the Adviser and its
affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and nonqualified) are not subject to the
eligibility requirements for Institutional Shares.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
|
|
| |
R6
Shares |
|
$5,000,000 (There is no minimum initial
investment for qualified retirement plans; however, the shares must be
held through plan-level or omnibus accounts held on the books of the
Fund.) |
|
No Minimum |
|
No Maximum |
Baron Health
Care Fund
|
|
|
|
|
| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
|
|
| |
Baron
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
You
Can Purchase or Redeem Shares By:
1. |
|
Mailing a request to
Baron Funds®, P.O.
Box 219946, Kansas City, MO 64121-9946 or by overnight mail to: Baron
Funds®, 430 West
7th Street, Kansas City, MO 64105-1514; |
3. |
|
Calling
1‑800‑442‑3814; |
4. |
|
Visiting the Baron
Funds® website
www.BaronFunds.com;
or |
5. |
|
Through a broker, dealer
or other financial intermediary that may charge you a
fee. |
The
Fund is not for short-term traders who intend to purchase and then sell their
Fund shares within a 90 day period. If the Adviser reasonably believes that a
person is not a long-term investor, it will attempt to prohibit that person from
making additional investments in the Fund.
Tax Information
Distributions
of the Fund’s net investment income (other than “qualified dividend income”) and
distributions of net short-term capital gains will be taxable to you as ordinary
income. Distributions of the Fund’s net capital gains reported as capital gain
dividends by the Fund will be taxable to you as long-term capital gains,
regardless of the length of time you have held shares of the Fund. If you are
investing through a tax‑deferred arrangement, such as a 401(k) plan or an
individual retirement account, you may be subject to federal income tax on
withdrawals from tax‑deferred arrangement at a later date.
Financial Intermediary
Compensation
If
you purchase Retail or Institutional Shares of the Fund through a broker, dealer
or other financial intermediary (such as a bank or financial adviser), the Fund,
Baron Capital, Inc., the Fund’s distributor, BAMCO or their affiliates may pay
the intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker, dealer or
other financial intermediary, including your salesperson, to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
Baron FinTech Fund
Investment Goal
The
investment goal of Baron FinTech Fund® (the “Fund”) is capital
appreciation.
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you would pay if you bought and
held shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table
and example below.
Annual Fund Operating Expenses
(Expenses
that you pay each year as a percentage of the value of your investment)
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| |
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|
Management Fee |
|
|
Distribution (12b‑1) Fee |
|
|
Other Expenses |
|
|
Total Annual Fund Operating Expenses |
|
|
Expense Reimbursements |
|
|
Total Annual
Fund Operating Expenses After Expense Reimbursements1 |
|
BARON
FINTECH FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
0.80% |
|
|
|
0.25% |
|
|
|
0.58% |
|
|
|
1.63% |
|
|
|
(0.43 |
)% |
|
|
1.20% |
|
Institutional
Shares |
|
|
0.80% |
|
|
|
0.00% |
|
|
|
0.40% |
|
|
|
1.20% |
|
|
|
(0.25 |
)% |
|
|
0.95% |
|
R6
Shares |
|
|
0.80% |
|
|
|
0.00% |
|
|
|
0.38% |
|
|
|
1.18% |
|
|
|
(0.23 |
)% |
|
|
0.95% |
|
1 |
|
BAMCO (“BAMCO” or the “Adviser”) has
agreed that, pursuant to a contract with an 11‑year term terminating on
August 29,
2033, it will reimburse certain expenses of the Fund,
limiting net annual operating expenses (portfolio transaction costs,
interest, dividend, acquired fund fees and expenses and extraordinary
expenses are not subject to the operating expense limitation) to 1.20% of
average daily net assets of Retail Shares, average daily net assets of
Retail Shares, 0.95% of average daily net assets of Institutional Shares
and 0.95% of average daily net assets of R6 shares. Only the Board of
Trustees of the Fund may terminate the expense reimbursement agreement
prior to its termination date.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a
Baron FinTech Fund
5%
return each year and that the Fund’s operating expenses remain the same, giving
effect to the expense reimbursement agreement described above. Although your
actual costs may be higher or lower, based on these assumptions your costs would
be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
FINTECH FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
122 |
|
|
$ |
381 |
|
|
$ |
660 |
|
|
$ |
1,455 |
|
Institutional
Shares |
|
$ |
97 |
|
|
$ |
303 |
|
|
$ |
525 |
|
|
$ |
1,166 |
|
R6
Shares |
|
$ |
97 |
|
|
$ |
303 |
|
|
$ |
525 |
|
|
$ |
1,166 |
|
Portfolio
Turnover. The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes for Fund shareholders.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, affect the Fund’s performance. During the most recent fiscal
year ended December 31, 2022, the Fund’s portfolio turnover rate was
27.08% of the average value of its
portfolio.
Investments, Risks, and
Performance
Principal Investment Strategies of the Fund
The Fund is a non‑diversified fund
that, under normal circumstances, invests at least 80% of its net assets in
securities of companies that develop, use, or rely on innovative technologies or
services, in a significant way, for banking, lending, capital markets, financial
data analytics, insurance, payments, asset management, or wealth
management. The Fund may purchase securities of companies of any
market capitalization and may invest in foreign stocks, including emerging
market securities, however, investments in non-U.S. securities are limited to
35% of the Fund’s total assets at the time of purchase.
Principal Risks of Investing in the Fund
FinTech Companies. FinTech Companies
may be adversely impacted by government regulations, economic conditions and
deterioration in credit markets. These companies may have significant exposure
to consumers and businesses (especially small businesses) in the form of loans
and other financial products or services. FinTech Companies typically face
intense competition and potentially rapid product obsolescence. In addition,
many FinTech Companies store sensitive consumer information and could be the
target of cybersecurity attacks and other types of theft, which could have a
negative impact on these companies. Many FinTech Companies currently operate
under less regulatory scrutiny than traditional financial services companies and
banks, but there is significant risk that regulatory oversight could
Baron FinTech Fund
increase
in the future. Higher levels of regulation could increase costs and adversely
impact the current business models of some FinTech Companies. These companies
could be negatively impacted by disruptions in service caused by hardware or
software failure, or by interruptions or delays in service by third-party data
center hosting facilities and maintenance providers. FinTech Companies involved
in alternative currencies may face slow adoption rates and be subject to higher
levels of regulatory scrutiny in the future, which could severely impact the
viability of these companies. FinTech Companies, especially smaller companies,
tend to be more volatile than companies that do not rely heavily on technology.
The customers and/or suppliers of FinTech Companies may be concentrated in a
particular country, region or industry. Any adverse event affecting one of these
countries, regions or industries could have a negative impact on FinTech
Companies. Companies across a wide variety of industries are exploring the
possible applications of fintech technologies. The extent of such technologies
versatility has not yet been fully explored. Consequently, the Fund’s
holdings may include equity securities of operating companies that focus on or
have exposure to a wide variety of industries and the economic fortunes of
certain companies held by the Fund may not be significantly tied to such fintech
technologies. Such technologies ultimately may not have a material affect
on the economic returns of the companies in which the Fund
invests.
Information Technology
Sector. Companies in the information technology sector are
subject to rapid changes in technology product cycles; rapid product
obsolescence; government regulation; and increased competition, both
domestically and internationally, including competition from foreign competitors
with lower production costs. Information technology companies and companies that
rely heavily on technology tend to be more volatile than the overall market and
also are heavily dependent on patent and intellectual property rights. In
addition, information technology companies may have limited product lines,
markets, financial resources
or personnel.
IT Services Industry. The IT
services industry can be significantly affected by competitive pressures, such
as technological developments, fixed-rate pricing, and the ability to attract
and retain skilled employees, and the success of companies in the industry is
subject to continued demand for IT services.
Financials Sector. The financials
industries are subject to extensive government regulation, can be subject to
relatively rapid change due to increasingly blurred distinctions between service
segments, and can be significantly affected by availability and cost of capital
funds, changes in interest rates, the rate of corporate and consumer debt
defaults, and price competition. Uncertainty in the banking and financial
systems can result in significant and widespread deterioration in market and
economic conditions by disrupting access to capital and other financial
services, which could adversely affect the performance of the
Fund.
Baron FinTech Fund
Non-Diversified Portfolio. The Fund
is non‑diversified, which means it may have a greater percentage of its assets
in a single issuer than a diversified fund. Because of this, a non‑diversified
fund may invest a greater percentage of its assets in fewer issuers, and the
performance of those issuers may have a greater effect on the performance of a
non‑diversified fund versus a diversified fund. Thus, a non‑diversified fund is
more likely to experience significant fluctuations in value, exposing the Fund
to a greater risk of loss in any given period than a diversified
fund.
Concentration. The Fund’s strategy
of concentrating in financials companies means that its performance will be
closely tied to the performance of a particular market segment. The Fund’s
concentration in these companies may present more risks than if it were broadly
diversified over numerous industries and sectors of the economy. A downturn in
these companies would have a larger impact on the Fund than on a mutual fund
that does not concentrate in such companies. At times, the performance of these
companies will lag the performance of other industries or the broader market as
a whole.
Growth Investing. Growth stocks can
react differently to issuer, political, market and economic developments than
the market as a whole and other types of stocks. Growth stocks tend to be more
expensive relative to their earnings or assets compared to other types of
stocks. As a result, because growth stocks tend to be sensitive to changes in
their earnings and to increasing interest rates and inflation, they tend to be
more volatile than other types of stocks. In response, from time to time, growth
investing as an investment style may go out of favor with
investors.
General Stock Market. Fund losses may be incurred due to declines in one or
more markets in which Fund investments are made. These
declines may be the result of, among other things, political, regulatory,
market, economic or social developments affecting the relevant market(s). In
addition, turbulence as has recently been experienced, caused, among other
reasons, by increased inflation, tightening monetary policy and interest rate
increases by the US Federal Reserve or similar international bodies, and reduced
liquidity in financial markets may continue to negatively affect many issuers,
which could have an adverse effect on your Fund investment. Events involving
limited liquidity, defaults, non-performance or other adverse developments that
affect one industry, such as the financial services industry, or concerns or
rumors about any events of these kinds, have in the past and may in the future
lead to market-wide liquidity problems, may spread to other industries, and
could negatively affect the value and liquidity of the Fund’s investments.
Global economies and financial markets are increasingly interconnected, and
conditions and events in one country, region or financial market, such as
Russia’s invasion of Ukraine in February 2022 and the world-wide response to it,
have and may continue to adversely impact issuers and markets worldwide. The
coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses
taken by many
Baron FinTech Fund
governments
or voluntarily imposed by private parties, including closing borders,
restricting travel and imposing prolonged quarantines or similar
restrictions, as well as the closure of, or operational changes to, many
retail and other businesses, have had negative impacts, and in many cases severe
negative impacts, on markets worldwide. It is not known how long such impacts,
or any future impacts of other significant events described above, will or would
last, but there could be a prolonged period of global economic slowdown, which
may impact your Fund investment. Raising the ceiling on U.S. government debt has
become increasingly politicized. Any failure to increase the total amount that
the U.S. government is authorized to borrow could lead to a default on U.S.
government obligations, with unpredictable consequences for economies and
markets in the U.S. and
elsewhere.
Non‑U.S. Securities. Investing in non‑U.S. securities
may involve additional risks to those inherent in investing in U.S. securities,
including exchange rate fluctuations, political or economic instability, the
imposition of exchange controls, expropriation, limited disclosure and illiquid
markets.
Developing Countries. The Fund
invests in developing countries, which include countries in the MSCI Emerging
Markets (EM) Index and other countries determined by the Adviser to be
developing countries based on classifications made by the International Monetary
Fund or on country characteristics similar to those of the countries in the EM
Index. Investments in developing countries are subject to all of the risks of
non-U.S. investing generally, and have additional heightened risks due to a lack
of established legal, political, business and social frameworks to support
securities markets, including: delays in settling portfolio securities
transactions; currency and capital controls; greater sensitivity to interest
rate changes; pervasiveness of corruption and crime; currency exchange rate
volatility; and inflation, deflation or currency
devaluation.
Small- and Mid‑Sized Companies. The
Adviser believes there is more potential for capital appreciation in small- and
mid‑sized companies, but there also may be more risk. Securities of small- and
mid‑sized companies may not be well known to most investors, and the securities
may be less actively traded than those of large businesses. The securities of
small- and mid‑sized companies may fluctuate in price more widely than the stock
market generally, and they may be more difficult to sell during market
downturns. Small- and mid‑sized companies rely more on the skills of management
and on their continued tenure. Investing in small- and mid‑sized companies
requires a long-term outlook and may require shareholders to assume more risk
and to have more patience than investing in the securities of larger, more
established companies.
Performance
The following bar
chart and table provide some indication of the risks of investing in the Fund
(Retail Shares) by showing the Fund’s performance from year to year and
by
Baron FinTech Fund
showing how the Fund’s annual
returns for 1 year and since inception compared with that of a broad measure of
market performance. The Fund’s past performance
(before and after taxes) is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available online at www.BaronFunds.com/performance
or by calling 1‑800‑99BARON
(1‑800‑992‑2766).
Total Return (%) for the year ended
December 31 (Retail Shares)
Best Quarter: |
6/30/20: 31.89% |
Worst Quarter: |
6/30/22: (22.51)% |
Average Annual Total Returns (for periods ended
12/31/2022)
The
following table shows the Fund’s Retail Shares’ annual and since inception
return (before and after taxes) and the change in value of broad-based market
indexes over various periods ended December 31, 2022. The table also shows the
average annual return of the Fund’s Institutional Shares and R6 Shares, but it
does not show after‑tax returns.
After‑tax returns are
calculated using the highest individual federal marginal income tax rate in
effect at the time of each distribution and assumed sale, but they do not
include the impact of state and local
taxes.
Your
actual after‑tax returns depend on your own tax situation and may differ from
those shown. After‑tax returns reflect past tax effects and are not predictive
of future tax effects. After‑tax returns are not
relevant to investors who hold their Fund’s shares in a tax‑deferred account
(including a 401(k) or IRA or Coverdell account), or to investors that are
tax‑exempt.
Baron FinTech Fund
Average
Annual Total Returns for the periods ended December 31, 2022
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1 year |
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5 years |
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10 years |
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Since Inception |
|
BARON
FINTECH FUND |
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|
Retail Shares (Inception date:
12‑31‑19) |
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|
|
|
|
|
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|
|
|
Return
before taxes |
|
|
(33.46 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
3.99% |
|
Return
after taxes on distributions |
|
|
(33.68 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
3.88% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
(19.66 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
3.06% |
|
Institutional Shares (Inception date:
12‑31‑19) |
|
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Return
before taxes |
|
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(33.30 |
)% |
|
|
N/A |
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|
N/A |
|
|
|
4.24% |
|
R6 Shares (Inception date:
12‑31‑19) |
|
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Return
before taxes |
|
|
(33.30 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
4.24% |
|
FactSet
Global FinTech Index (reflects no deduction for fees, expenses or
taxes) |
|
|
(33.66 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(4.87)% |
|
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
|
|
(18.11 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
7.66% |
|
The Fund has changed its primary
benchmark to the FactSet Global FinTech Index because the Adviser believes it
better reflects the investment strategy of the Fund and it is more
representative of the Fund’s investable universe. The FactSet Global FinTech
Index is an unmanaged and equal-weighted index that measures the equity market
performance of companies engaged in Financial Technologies, primarily in the
areas of software and consulting, data and analytics, digital payment
processing, money transfer, and payment transaction-related
hardware. The S&P 500 Index is an unmanaged index of
larger-cap companies.
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Josh Saltman has
been the portfolio manager of the Fund since its inception on December 31,
2019. Mr. Saltman has worked at the Adviser as an analyst since August of
2011.
Baron FinTech Fund
Purchase and Sale of Fund
Shares
Shares
may be purchased only on days that the New York Stock Exchange is open for
trading.
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| |
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Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
Retail
Shares |
|
$2,000 |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Automatic Investment Plan |
|
$500 (with subsequent minimum investments of
$50 per month until your investment has reached $2,000.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
$2,000 |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
|
|
| |
Institutional
Shares |
|
$1,000,000 (Employees of the Adviser and its
affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and nonqualified) are not subject to the
eligibility requirements for Institutional Shares.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
R6
Shares |
|
$5,000,000 (There is no minimum initial
investment for qualified retirement plans; however, the shares must be
held through plan-level or omnibus accounts held on the books of the
Fund.) |
|
No Minimum |
|
No Maximum |
Baron FinTech Fund
|
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|
|
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| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
|
|
| |
Baron
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non‑retirement accounts. |
You
Can Purchase or Redeem Shares By:
1. |
|
Mailing a request to
Baron Funds®, P.O.
Box 219946, Kansas City, MO 64121-9946 or by overnight mail to: Baron
Funds®, 430 West
7th Street, Kansas City, MO 64105-1514; |
3. |
|
Calling
1‑800‑442‑3814; |
4. |
|
Visiting the Baron
Funds® website
www.BaronFunds.com;
or |
5. |
|
Through a broker, dealer
or other financial intermediary that may charge you a
fee. |
The
Fund is not for short-term traders who intend to purchase and then sell their
Fund shares within a 90 day period. If the Adviser reasonably believes that a
person is not a long-term investor, it will attempt to prohibit that person from
making additional investments in the Fund.
Tax Information
Distributions
of the Fund’s net investment income (other than “qualified dividend income”) and
distributions of net short-term capital gains will be taxable to you as ordinary
income. Distributions of the Fund’s net capital gains reported as capital gain
dividends by the Fund will be taxable to you as long-term capital gains,
regardless of the length of time you have held shares of the Fund. If you are
investing through a tax‑deferred arrangement, such as a 401(k) plan or an
individual retirement account, you may be subject to federal income tax on
withdrawals from tax‑deferred arrangement at a later date.
Financial Intermediary
Compensation
If
you purchase Retail or Institutional Shares of the Fund through a broker, dealer
or other financial intermediary (such as a bank or financial adviser), the Fund,
Baron Capital, Inc., the Fund’s distributor, BAMCO or their affiliates may pay
the intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker, dealer or
other financial intermediary, including your salesperson, to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
Baron New Asia Fund
Investment Goal
The
investment goal of Baron New Asia Fund® (the “Fund”) is capital
appreciation.
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you would pay if you bought and
held shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table
and example below.
Annual Fund Operating Expenses
(Expenses
that you pay each year as a percentage of the value of your investment)
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| |
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Management Fee |
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|
Distribution (12b‑1) Fee |
|
|
Other Expenses |
|
|
Total Annual Fund Operating Expenses |
|
|
Expense Reimbursements |
|
|
Total Annual Fund Operating Expenses after Expense Reimbursements1 |
|
BARON
NEW ASIA FUND |
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
1.00% |
|
|
|
0.25% |
|
|
|
7.71% |
|
|
|
8.96% |
|
|
|
(7.51 |
)% |
|
|
1.45% |
|
Institutional
Shares |
|
|
1.00% |
|
|
|
0.00% |
|
|
|
6.22% |
|
|
|
7.22% |
|
|
|
(6.02 |
)% |
|
|
1.20% |
|
R6
Shares |
|
|
1.00% |
|
|
|
0.00% |
|
|
|
6.95% |
|
|
|
7.95% |
|
|
|
(6.75 |
)% |
|
|
1.20% |
|
1 |
|
BAMCO (“BAMCO” or the “Adviser”) has
agreed that, pursuant to a contract with an 11-year term terminating on
August 29,
2033, it will reimburse certain expenses of the Fund,
limiting net annual operating expenses (portfolio transaction costs,
interest, dividend, acquired fund fees and expenses and extraordinary
expenses are not subject to the operating expense limitation) to 1.45% of
average daily net assets of Retail Shares, average daily net assets of
Retail Shares, 1.20% of average daily net assets of Institutional Shares
and 1.20% of average daily net assets of R6 shares. Only the Board of
Trustees of the Fund may terminate the expense reimbursement agreement
prior to its termination date.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a
Baron New Asia Fund
5%
return each year and that the Fund’s operating expenses remain the same, giving
effect to the expense reimbursement agreement described above. Although your
actual costs may be higher or lower, based on these assumptions your costs would
be:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
NEW ASIA FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
148 |
|
|
$ |
459 |
|
|
$ |
792 |
|
|
$ |
1,735 |
|
Institutional
Shares |
|
$ |
122 |
|
|
$ |
381 |
|
|
$ |
660 |
|
|
$ |
1,455 |
|
R6
Shares |
|
$ |
122 |
|
|
$ |
381 |
|
|
$ |
660 |
|
|
$ |
1,455 |
|
Portfolio
Turnover. The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes for Fund shareholders.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, affect the Fund’s performance. During the most recent fiscal
year ended December 31, 2022, the Fund’s portfolio turnover rate was
56.48% of the average value of its
portfolio.
Investments, Risks, and
Performance
Principal Investment Strategies of the Fund
The
Fund is a diversified fund that, under normal circumstances, invests 80% of its
net assets in the common stock of companies located in Asia, which consists of
all countries and markets in Asia, but including all other developed,
developing, and frontier countries and markets in the Asian region. Certain
developing market countries may also be classified as “frontier” market
countries, which are a subset of developing market countries with newer or even
less developed economies and markets, such as Sri Lanka and Vietnam. The Adviser
considers a company or other issuer to be “located” in a country or a region,
and a security or instrument is deemed to be an Asian (or specific country)
security or instrument, if it has substantial ties to that country or region.
The Fund currently makes that determination based primarily on one or more of
the following criteria with respect to a company or issuer, whether (i) it
is organized under the laws of that country or any country in that region;
(ii) it derives at least 50% of its revenues or profits from goods produced
or sold, investments made, or services performed, or has at least 50% of its
assets located, within that country or region; (iii) it has the primary
trading markets for its securities in that country or region; (iv) it has
its principal place of business in or is otherwise headquartered in that country
or region; or (v) it is a governmental entity or an agency, instrumentality
or a political subdivision of that country or any country in that region. The
term “located” and the associated criteria listed above have been
Baron New Asia Fund
defined
in such a way that the Fund has latitude in determining whether an issuer should
be included within a region or country. The Fund may purchase securities of
companies of any market capitalization but expects to emphasize mid and
large-sized companies. The Adviser seeks to invest in businesses it believes has
significant opportunities for growth, sustainable competitive advantages,
exceptional management, and an attractive
valuation.
For
purposes of maintaining exposure of at least 80% of the Fund’s assets to equity
securities of issuers located in Asia, the Fund may also invest in American
Depository Receipts (“ADRs”), Global Depository Receipts (“GDRs”) and other
types of depository receipts with respect to issuers located in Asia. The
Fund may also invest in privately placed and restricted
securities.
The
Fund’s investments are generally traded in currencies other than U.S. dollars,
so the Adviser buys and sells foreign currencies to facilitate transactions in
portfolio securities. The Adviser usually does not hedge against possible
fluctuations in exchange rates, but exposure to a particular currency that the
Adviser believes is overvalued may be hedged if the Fund has a substantial
position in securities traded in that currency. The Fund may buy and sell
currencies for cash at current exchange rates, or using an agreement to purchase
or sell a specified currency at a specified future date or within a specified
time period, at a price set at the time of the
contract.
The
investment policy of the Fund relating to the types of securities in which 80%
of the Fund’s assets must be invested may be changed by the Fund’s Board of
Trustees without shareholder approval upon at least 60 days’
notice.
Principal Risks of Investing in the Fund
Non-U.S. Securities. Investing in
non-U.S. securities may involve additional risks to those inherent in investing
in U.S. securities, including exchange rate fluctuations, political or economic
instability, the imposition of exchange controls, expropriation, limited
disclosure and illiquid markets.
Developing Countries. The Fund
invests in developing countries, which include countries in the MSCI Emerging
Markets (EM) Index and other countries determined by the Adviser to be
developing countries based on classifications made by the International Monetary
Fund or on country characteristics similar to those of the countries in the EM
Index. Investments in developing countries are subject to all of the risks of
non-U.S. investing generally, and have additional heightened risks due to a lack
of established legal, political, business and social frameworks to support
securities markets, including: delays in settling portfolio securities
transactions; currency and capital controls; greater sensitivity to interest
rate changes;
Baron New Asia Fund
pervasiveness
of corruption and crime; currency exchange rate volatility; and inflation,
deflation or currency devaluation.
Currency. This refers to a decline
in the value of a foreign currency versus the U.S. dollar, which reduces the
dollar value of securities denominated in that currency. The overall impact on
the Fund’s holdings can be significant, unpredictable and long-lasting,
depending on the currencies represented in the portfolio and how each one
appreciates or depreciates in relation to the U.S. dollar and whether currency
positions are hedged. Under normal conditions, the Fund does not engage in
extensive foreign currency hedging programs. Further, because exchange rate
movements are volatile, the Fund’s attempts at hedging could be unsuccessful,
and it may not be possible to effectively hedge the currency risks of many
developing countries.
Risks Associated with China and Hong
Kong. The Chinese government exercises significant control
over China’s economy through its industrial policies, monetary policy,
management of currency exchange rates, and management of the payment of foreign
currency-denominated obligations. Changes in these policies could adversely
impact affected industries or companies in China. China’s economy, particularly
its export-oriented industries, may be adversely impacted by trade or political
disputes with China’s major trading partners, including the U.S. The United
States has imposed tariffs and other trade barriers on Chinese exports, has
restricted sales of certain categories of goods to China, and has established
barriers to investments in China. Trade disputes may adversely affect the
economies of the United States and its trading partners, as well as companies
directly or indirectly affected and financial markets generally. In addition,
the Chinese government is involved in a longstanding dispute with Taiwan that
has included threats of invasion. If the political climate between the United
States and China does not improve or continues to deteriorate, if China were to
attempt unification of Taiwan by force, or if other geopolitical conflicts
develop or get worse, economies, markets and individual securities may be
severely affected both regionally and globally, and the value of the Fund’s
assets may go down. In addition, as its consumer class continues to grow,
China’s domestically oriented industries may be especially sensitive to changes
in government policy and investment cycles. If China were to exert its authority
so as to alter the economic, political or legal structures or the existing
social policy of Hong Kong, investor and business confidence in Hong Kong could
be negatively affected and have an adverse effect on the Fund’s
investments.
Risks Associated with Investing in Chinese Companies
through Variable Interest Entities. The Fund may obtain
exposure to companies based or operated in China by investing through legal
structures known as variable interest entities (“VIEs”). Instead of directly
owning the equity securities of a Chinese company, a VIE enters into service and
other contracts with the Chinese company. Although the VIE has no equity
ownership of the Chinese company, the contractual arrangements permit
the
Baron New Asia Fund
VIE
to consolidate the Chinese company into its financial statements. VIE
investments are subject to the risk that any breach of these contractual
arrangements will be subject to Chinese law and jurisdiction, that Chinese law
may be interpreted or change in a way that affects the enforceability of the
VIE’s arrangements, or that contracts between the Chinese company and the VIE
may otherwise not be enforceable under Chinese
law.
Risks Associated with
India. Government actions, bureaucratic obstacles and
inconsistent economic reform within the Indian government have had a significant
effect on the Indian economy and could adversely affect market conditions,
economic growth and the profitability of private enterprises in India. Global
factors and foreign actions may inhibit the flow of foreign capital on which
India is dependent to sustain its growth. Large portions of many Indian
companies remain in the hands of their founders (including members of their
families). Corporate governance standards of family-controlled companies may be
weaker and less transparent, which increases the potential for loss and unequal
treatment of investors. Religious, cultural and military disputes persist in
India and between India and Pakistan (as well as sectarian groups within each
country).
Risks of Investing through Stock
Connect. The Fund may invest in A-shares listed and traded
through Stock Connect, or on such other stock exchanges in China which
participate in Stock Connect from time to time or in the future. Trading through
Stock Connect is subject to a number of restrictions that may affect the
Fund’s investments and returns. Moreover, Stock Connect A shares generally
may not be sold, purchased or otherwise transferred other than through Stock
Connect in accordance with applicable rules. The Stock Connect program is a
relatively new program and may be subject to further interpretation
and guidance. There can be no assurance as to the program’s continued
existence or whether future developments regarding the program may restrict
or adversely affect the Fund’s investments or
returns.
Depository Receipts. Although
depository receipts have risks similar to the securities that they represent,
they may also involve higher expenses and may trade at a discount (or premium)
to the underlying security. In addition, depository receipts may not pass
through voting and other shareholder rights, and may be less liquid than the
underlying securities listed on an
exchange.
Political, Social and Economic Risks of Investing in
Asia. The value of the Fund’s assets may be adversely affected
by political, economic, social and religious instability; inadequate investor
protection; changes in laws or regulations of countries within the Asian region
(including countries in which the Fund invests, as well as the broader region);
international relations with other nations; natural disasters; corruption and
military activity. The economies of many Asian countries differ from the
economies of more developed countries in many respects, such as rate of
growth,
Baron New Asia Fund
inflation,
capital reinvestment, resource self-sufficiency, financial system stability, the
national balance of payments position and sensitivity to changes in global
trade.
Risks of Emphasizing a Region, Country, Sector or
Industry. If the Fund has invested a higher percentage of its
total assets in a particular region, country, sector or industry, changes
affecting that region, country, sector or industry may have a significant impact
on the performance of the Fund’s overall
portfolio.
Frontier Countries. The Fund’s
investments in frontier countries, which include countries in the MSCI Frontier
Markets (FM) Index, are subject to all of the risks of non-U.S. investing
generally and the risks of investing in developing countries, except that such
risks are greater in frontier countries.
Growth Investing. Growth stocks can
react differently to issuer, political, market and economic developments than
the market as a whole and other types of stocks. Growth stocks tend to be more
expensive relative to their earnings or asset compared to other types of stocks.
As a result, because growth stocks tend to be sensitive to changes in their
earnings and to increasing interest rates and inflation, they tend to be more
volatile than other types of stocks. In response, from time to time, growth
investing as an investment style may go out of favor with
investors.
General Stock Market. Fund losses may be incurred due to declines in one or
more markets in which Fund investments are made. These
declines may be the result of, among other things, political, regulatory,
market, economic or social developments affecting the relevant market(s). In
addition, turbulence as has recently been experienced, caused, among other
reasons, by increased inflation, tightening monetary policy and interest rate
increases by the US Federal Reserve or similar international bodies, and reduced
liquidity in financial markets may continue to negatively affect many issuers,
which could have an adverse effect on your Fund investment. Events involving
limited liquidity, defaults, non-performance or other adverse developments that
affect one industry, such as the financial services industry, or concerns or
rumors about any events of these kinds, have in the past and may in the future
lead to market-wide liquidity problems, may spread to other industries, and
could negatively affect the value and liquidity of the Fund’s investments.
Global economies and financial markets are increasingly interconnected, and
conditions and events in one country, region or financial market, such as
Russia’s invasion of Ukraine in February 2022 and the world-wide response to it,
have and may continue to adversely impact issuers and markets worldwide. The
coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses
taken by many governments or voluntarily imposed by private parties, including
closing borders, restricting travel and imposing prolonged quarantines or
similar restrictions, as well as the closure of, or operational changes to,
many retail and other businesses, have had negative impacts, and in many cases
severe negative impacts, on markets worldwide. It is not known how long such
impacts, or any future impacts of other
significant
Baron New Asia Fund
events
described above, will or would last, but there could be a prolonged period of
global economic slowdown, which may impact your Fund investment. Raising the
ceiling on U.S. government debt has become increasingly politicized. Any failure
to increase the total amount that the U.S. government is authorized to borrow
could lead to a default on U.S. government obligations, with unpredictable
consequences for economies and markets in the U.S. and
elsewhere.
Small- and Mid-Sized Companies. The
Adviser believes there is more potential for capital appreciation in small- and
mid-sized companies, but there also may be more risk. Securities of small- and
mid-sized companies may not be well known to most investors, and the securities
may be less actively traded than those of large businesses. The securities of
small- and mid-sized companies may fluctuate in price more widely than the stock
market generally, and they may be more difficult to sell during market
downturns. Small- and mid-sized companies rely more on the skills of management
and on their continued tenure. Investing in small- and mid-sized companies
requires a long-term outlook and may require shareholders to assume more risk
and to have more patience than investing in the securities of larger, more
established companies.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund (Retail Shares) by showing the Fund’s performance for its first full
calendar year of operations and by showing how the Fund’s annual returns for 1
year and since inception compared with that of a broad measure of market
performance. The Fund’s past performance
(before and after taxes) is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available online at www.BaronFunds.com/performance
or by calling 1-800-99BARON
(1-800-992-2766).
Total Return (%) for the year ended December 31
(Retail Shares)
Best Quarter: |
12/31/22: 6.47% |
Worst Quarter: |
3/31/22: (15.34)% |
Average Annual Total Returns (for periods ended
12/31/2022)
Baron New Asia Fund
The
following table shows the Fund’s Retail Shares’ annual and since inception
return (before and after taxes) and the change in value of broad-based market
indexes over various periods ended December 31, 2022. The table also shows the
average annual return of the Fund’s Institutional Shares and R6 Shares, but it
does not show after-tax returns.
After-tax returns are
calculated using the highest individual federal marginal income tax rate in
effect at the time of each distribution and assumed sale, but they do not
include the impact of state and local
taxes.
Your
actual after-tax returns depend on your own tax situation and may differ from
those shown. After-tax returns reflect past tax effects and are not predictive
of future tax effects. After-tax returns are not
relevant to investors who hold their Fund’s shares in a tax-deferred account
(including a 401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Average
Annual Total Returns for the periods ended December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
NEW ASIA FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Inception date:
7‑30‑21) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(27.24 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(19.15 |
)% |
Return
after taxes on distributions |
|
|
(27.24 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(19.05 |
)% |
Return
after taxes on distributions and sale of Fund shares |
|
|
(16.12 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(14.36 |
)% |
Institutional Shares (Inception date:
7‑30‑21) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(26.94 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(18.92 |
)% |
R6 Shares (Inception date:
7‑30‑21) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(26.84 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(18.92 |
)% |
MSCI
AC Asia ex Japan Index (reflects no deduction for fees, expenses or
taxes) |
|
|
(19.67 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(16.27 |
)% |
MSCI
AC Asia ex Japan IMI Growth Index (reflects no deduction for fees,
expenses or taxes) |
|
|
(24.26 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(19.95 |
)% |
The
MSCI AC Asia ex Japan Index measures the performance of large and mid cap equity
securities representation across 2 of 3 developed markets countries (excluding
Japan) and 8 emerging markets countries in Asia. The MSCI AC Asia ex Japan IMI
Growth Index measures the performance of large, mid, and small cap securities
exhibiting overall growth style characteristics across 2 of 3 developed markets
countries (excluding Japan) and 8 emerging market countries in Asia.
Baron New Asia Fund
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Michael Kass and
Anuj Aggarwal have been the co-managers of the Fund since its inception on July
30, 2021. Mr. Kass has worked at the Adviser as a portfolio manager since
November of 2007. Mr. Aggarwal joined the Adviser as a research analyst in
August of 2012.
Purchase and Sale of Fund
Shares
Shares
may be purchased only on days that the New York Stock Exchange is open for
trading.
|
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|
|
| |
|
|
|
|
|
|
Minimum Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
Retail
Shares |
|
$2,000 |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Automatic Investment Plan |
|
$500 (with subsequent minimum investments of
$50 per month until your investment has reached $2,000.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds® website
purchases |
|
$2,000 |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non-retirement accounts. |
|
|
| |
Institutional
Shares |
|
$1,000,000
(Employees
of the Adviser and its affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and nonqualified) are not subject to the
eligibility requirements for Institutional Shares.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds® website
purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non-retirement accounts. |
Baron New Asia Fund
|
|
|
|
|
| |
|
|
|
|
|
|
Minimum Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
|
|
| |
R6
Shares |
|
$5,000,000 (There is no minimum initial
investment for qualified retirement plans; however, the shares must be
held through plan-level or omnibus accounts held on the books of the
Fund.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds® website
purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non-retirement accounts. |
You
Can Purchase or Redeem Shares By:
1. |
|
Mailing a request to
Baron Funds®, P.O.
Box 219946, Kansas City, MO 64121-9946 or by overnight mail to: Baron
Funds®, 430 West
7th Street, Kansas City, MO 64105-1514; |
3. |
|
Calling
1-800-442-3814; |
4. |
|
Visiting the Baron
Funds® website
www.BaronFunds.com;
or |
5. |
|
Through a broker, dealer
or other financial intermediary that may charge you a
fee. |
The
Fund is not for short-term traders who intend to purchase and then sell their
Fund shares within a 90 day period. If the Adviser reasonably believes that a
person is not a long-term investor, it will attempt to prohibit that person from
making additional investments in the Fund.
Tax Information
Distributions
of the Fund’s net investment income (other than “qualified dividend income”) and
distributions of net short-term capital gains will be taxable to you as ordinary
income. Distributions of the Fund’s net capital gains reported as capital gain
dividends by the Fund will be taxable to you as long-term capital gains,
regardless of the length of time you have held shares of the Fund. If you are
investing through a tax-deferred arrangement, such as a 401(k) plan or an
individual retirement account, you may be subject to federal income tax on
withdrawals from tax-deferred arrangement at a later date.
Baron New Asia Fund
Financial Intermediary
Compensation
If
you purchase Retail or Institutional Shares of the Fund through a broker, dealer
or other financial intermediary (such as a bank or financial adviser), the Fund,
Baron Capital, Inc., the Fund’s distributor, BAMCO or their affiliates may pay
the intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker, dealer or
other financial intermediary, including your salesperson, to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
Baron Technology Fund
Investment Goal
The
investment goal of Baron Technology Fund® (the “Fund”) is capital
appreciation.
Fees and Expenses of the
Fund
The
table below describes the fees and expenses that you would pay if you bought and
held shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table
and example below.
Annual Fund Operating Expenses
(Expenses
that you pay each year as a percentage of the value of your investment)
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Management fee |
|
|
Distribution (12b-1) Fee |
|
|
Other Expenses1 |
|
|
Total Annual Fund Operating Expenses |
|
|
Expense Reimbursements |
|
|
Total Annual Fund Operating Expenses After Expense Reimbursements1 |
|
BARON
TECHNOLOGY FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
0.80% |
|
|
|
0.25% |
|
|
|
5.81% |
|
|
|
6.86% |
|
|
|
(5.66 |
)% |
|
|
1.20% |
|
Institutional
Shares |
|
|
0.80% |
|
|
|
0.00% |
|
|
|
5.62% |
|
|
|
6.42% |
|
|
|
(5.47 |
)% |
|
|
0.95% |
|
R6
Shares |
|
|
0.80% |
|
|
|
0.00% |
|
|
|
2.95% |
|
|
|
3.75% |
|
|
|
(2.80 |
)% |
|
|
0.95% |
|
1 |
|
BAMCO (“BAMCO” or the “Adviser”) has
agreed that, pursuant to a contract with an 11-year term terminating on
August 29,
2033, it will reimburse certain expenses of the Fund,
limiting net annual operating expenses (portfolio transaction costs,
interest, dividend, acquired fund fees and expenses and extraordinary
expenses are not subject to the operating expense limitation) to 1.20% of
average daily net assets of Retail Shares, 0.95% of average daily net
assets of Institutional Shares, and 0.95% of average daily net assets of
R6 shares. Only the Board of Trustees of the Fund may terminate the
expense reimbursement agreement prior to its termination date.
|
Example
This
example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same, giving
Baron Technology Fund
effect
to the expense reimbursement agreement described above. Although your actual
costs may be higher or lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
TECHNOLOGY FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
122 |
|
|
$ |
381 |
|
|
$ |
660 |
|
|
$ |
1,455 |
|
Institutional
Shares |
|
$ |
97 |
|
|
$ |
303 |
|
|
$ |
525 |
|
|
$ |
1,166 |
|
R6
Shares |
|
$ |
97 |
|
|
$ |
303 |
|
|
$ |
525 |
|
|
$ |
1,166 |
|
Portfolio
Turnover. The Fund Pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover rate may indicate
higher transaction costs and may result in higher taxes for Fund shareholders.
These costs, which are not reflected in Total Annual Fund Operating Expenses or
in the example, affect the Fund’s performance. During the most recent fiscal
year ended December 31, 2022, the Fund’s portfolio turnover rate was
19.13% of the average value of its
portfolio.
Investments, Risks, and
Performance
Principal Investment strategies of the Fund
The
Fund is a non-diversified fund that, under normal market conditions, invests at
least 80% of its net assets in equity securities in the form of common stock of
U.S. and non-U.S. technology companies of any market capitalization, selected
for their durable growth potential from the development, advancement and use of
technology, however, investments in non-U.S. securities are limited to 35% of
the Fund’s total assets at the time of purchase. Technology companies may
include those companies in the businesses of, among others: software, IT
consulting, IT services, interactive home entertainment, interactive media and
services, networking equipment, telecom services, communications equipment,
technology hardware, storage and peripherals, electronic equipment, instruments
and components, semiconductors and semiconductor equipment, and internet and
direct marketing retail. Technology companies may be located anywhere in the
world, including developing countries. A developing country is a country
included in the MSCI Emerging Markets (EM) Index and other countries determined
by the Adviser to be developing countries based on classifications made by the
International Monetary Fund or on country characteristics similar to those of
the countries in the EM Index. BAMCO seeks to invest in businesses it believes
have significant opportunities for growth, sustainable competitive advantages,
exceptional management, and an attractive valuation.
Baron Technology Fund
Principal Risks of Investing in the Fund
Technology. Technology companies,
including internet-related and information technology companies, as well as
companies propelled by new technologies, may present the risk of rapid change
and product obsolescence, and their successes may be difficult to predict for
the long term. Some technology companies may be newly formed and have limited
operating history and experience. Technology companies may also be adversely
affected by changes in governmental policies, competitive pressures and changing
demand. The securities of these companies may also experience significant price
movements caused by disproportionate investor optimism or pessimism, with little
or no basis in the companies’ fundamentals or economic conditions.
Non-Diversified Portfolio. The Fund
is non-diversified, which means it may have a greater percentage of its assets
in a single issuer than a diversified fund. Because of this, a non-diversified
fund may invest a greater percentage of its assets in fewer issuers, and the
performance of those issuers may have a greater effect on the performance of a
non-diversified fund versus a diversified fund. Thus, a non-diversified fund is
more likely to experience significant fluctuations in value, exposing the Fund
to a greater risk of loss in any given period than a diversified
fund.
Concentration. The Fund’s strategy
of concentrating in technology and related companies means that its performance
will be closely tied to the performance of a particular market segment. The
Fund’s concentration in these companies may present more risks than if it were
broadly diversified over numerous industries and sectors of the economy. A
downturn in these companies would have a larger impact on the Fund than on a
mutual fund that does not concentrate in such companies. At times, the
performance of these companies will lag the performance of other industries or
the broader market as a whole
Growth Investing. Growth stocks can
react differently to issuer, political, market and economic developments than
the market as a whole and other types of stocks. Growth stocks tend to be more
expensive relative to their earnings or assets compared to other types of
stocks. As a result, because growth stocks tend to be sensitive to changes in
their earnings and to increasing interest rates and inflation, they tend to be
more volatile than other types of stocks. In response, from time to time, growth
investing as an investment style may go out of favor with
investors.
General Stock Market. Fund losses may be incurred due to declines in one or
more markets in which Fund investments are made. These
declines may be the result of, among other things, political, regulatory,
market, economic or social developments affecting the relevant market(s). In
addition, turbulence as has recently been experienced, caused, among other
reasons, by increased inflation, tightening
Baron Technology Fund
monetary
policy and interest rate increases by the US Federal Reserve or similar
international bodies, and reduced liquidity in financial markets may continue to
negatively affect many issuers, which could have an adverse effect on your Fund
investment. Events involving limited liquidity, defaults, non-performance or
other adverse developments that affect one industry, such as the financial
services industry, or concerns or rumors about any events of these kinds, have
in the past and may in the future lead to market-wide liquidity problems, may
spread to other industries, and could negatively affect the value and liquidity
of the Fund’s investments. Global economies and financial markets are
increasingly interconnected, and conditions and events in one country, region or
financial market, such as Russia’s invasion of Ukraine in February 2022 and the
world-wide response to it, have and may continue to adversely impact issuers and
markets worldwide. The coronavirus disease 2019 (COVID-19) global pandemic and
the aggressive responses taken by many governments or voluntarily imposed by
private parties, including closing borders, restricting travel and imposing
prolonged quarantines or similar restrictions, as well as the closure of,
or operational changes to, many retail and other businesses, have had negative
impacts, and in many cases severe negative impacts, on markets worldwide. It is
not known how long such impacts, or any future impacts of other significant
events described above, will or would last, but there could be a prolonged
period of global economic slowdown, which may impact your Fund investment.
Raising the ceiling on U.S. government debt has become increasingly politicized.
Any failure to increase the total amount that the U.S. government is authorized
to borrow could lead to a default on U.S. government obligations, with
unpredictable consequences for economies and markets in the U.S. and
elsewhere.
Non-U.S. Securities. Investing in
non-U.S. securities may involve additional risks to those inherent in investing
in U.S. securities, including exchange rate fluctuations, political or economic
instability, the imposition of exchange controls, expropriation, limited
disclosure and illiquid markets.
Developing Countries. The Fund
invests in developing countries, which include countries in the MSCI Emerging
Markets (EM) index and other countries determined by the Adviser to be
developing countries based on classifications made by the International Monetary
Fund or on country characteristics similar to those of the countries in the EM
index. Investments in developing countries are subject to all of the risks of
non-U.S. investing generally, and have additional heightened risks due to a lack
of established legal, political, business and social frameworks to support
securities markets, including: delays in settling portfolio securities
transactions; currency and capital controls; greater sensitivity to interest
rate changes; pervasiveness of corruption and crime; currency exchange rate
volatility; and inflation, deflation or currency
devaluation.
Baron Technology Fund
Small- and Mid-Sized Companies. The
Adviser believes there is more potential for capital appreciation in small- and
mid-sized companies, but there also may be more risk. Securities of small- and
mid-sized companies may not be well known to most investors, and the securities
may be less actively traded than those of large businesses. The securities of
small- and mid-sized companies may fluctuate in price more widely than the stock
market generally, and they may be more difficult to sell during market
downturns. Small- and mid-sized companies rely more on the skills of management
and on their continued tenure. Investing in small- and mid-sized companies
requires a long-term outlook and may require shareholders to assume more risk
and to have more patience than investing in the securities of larger, more
established companies.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund (Retail Shares) by showing the Fund’s performance for its first full
calendar year of operations and by showing how the Fund’s annual returns for 1
year compared with that of a broad measure of market
performance. The Fund’s past performance
(before and after taxes) is not necessarily an indication of how the Fund will
perform in the future. Updated performance information is
available online at www.BaronFunds.com/performance
or by calling 1-800-99BARON
(1‑800‑992‑2766).
Total Return (%) for the year ended December 31
(Retail Shares)
Best Quarter: |
9/30/22:
(4.68)% |
Worst Quarter: |
6/30/22: (25.96)% |
Average Annual Total Returns (for period ended
12/31/2022)
The
following table shows the Fund’s Retail Shares’ annual and since inception
return (before and after taxes) and the change in value of broad-based market
indexes for the year ended December 31, 2022. The table also shows the
average annual return of the Fund’s Institutional Shares and R6 Shares, but it
does not show after-tax returns.
Baron Technology Fund
After-tax returns are
calculated using the highest individual federal marginal income tax rate in
effect at the time of each distribution and assumed sale, but they do not
include the impact of state and local
taxes.
Your
actual after-tax returns depend on your own tax situation and may differ from
those shown. After-tax returns reflect past tax effects and are not predictive
of future tax effects. After-tax returns are not
relevant to investors who hold their Fund’s shares in a tax-deferred account
(including a 401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Average
Annual Total Returns for the periods ended December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
TECHNOLOGY FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Inception date:
12‑31‑2021) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(44.40 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(44.40 |
)% |
Return
after taxes on distributions |
|
|
(44.40 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(44.40 |
)% |
Return
after taxes on distributions and sale of Fund shares |
|
|
(26.28 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(26.28 |
)% |
Institutional Shares (Inception date:
12‑31‑2021) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(44.30 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(44.30 |
)% |
R6 Shares (Inception date:
12‑31‑2021) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
(44.30 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(44.30 |
)% |
MSCI
ACWI Information Technology Index (reflects no deduction for fees,
expenses or taxes) |
|
|
(31.07 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(31.07 |
)% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
|
|
(18.11 |
)% |
|
|
N/A |
|
|
|
N/A |
|
|
|
(18.11 |
)% |
The
MSCI ACWI Information Technology Index includes large and mid cap securities
across 23 developed markets countries and 24 emerging markets countries. All
securities in the index are classified in the Information Technology sector as
per the Global Industry Classification Standard. The S&P 500 Index is an
unmanaged index of larger-cap companies.
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Michael Lippert
and Ashim Mehra have been the co-managers of the Fund since its inception on
December 31, 2021. Mr. Lippert has worked at the Adviser as an analyst
since December of 2001 and as a portfolio manager since March
Baron Technology Fund
of
2006. Mr. Mehra has worked at the Adviser as an analyst since July of 2011
and as a portfolio manager since May of 2018.
Purchase and Sale of Fund
Shares
Shares
may be purchased only on days that the New York Stock Exchange is open for
trading.
|
|
|
|
|
| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
Retail
Shares |
|
$2,000 |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Automatic Investment Plan |
|
$500 (with subsequent minimum investments of
$50 per month until your investment has reached $2,000.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
$2,000 |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non-retirement accounts. |
|
|
| |
Institutional
Shares |
|
$1,000,000 (Employees of the Adviser and its
affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and non qualified) are not subject to the
eligibility requirements for Institutional Shares.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non-retirement accounts. |
Baron Technology Fund
|
|
|
|
|
| |
|
|
|
|
|
|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
|
|
| |
R6
Shares |
|
$5,000,000 (There is no minimum initial
investment for qualified retirement plans; however, the shares must be
held through plan-level or omnibus accounts held on the books of the
Fund.) |
|
No Minimum |
|
No Maximum |
|
|
| |
Baron
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$6,500 for retirement accounts and $250,000
for non-retirement accounts. |
You Can Purchase or Redeem Shares By:
1. |
|
Mailing a request to
Baron Funds®, P.O.
Box 219946, Kansas City, MO 64121-9946 or by overnight mail to: Baron
Funds®, 430 West
7th Street, Kansas
City, MO 64105‑1514; |
3. |
|
Calling
1-800-422-3814; |
4. |
|
Visiting the Baron
Funds® website
www.BaronFunds.com;
or |
5. |
|
Through a broker, dealer
or other financial intermediary that may charge you a
fee. |
The
Fund is not for short-term traders who intend to purchase and then sell their
Fund shares within a 90 day period. If the Adviser reasonably believes that a
person is not a long-term investor, it will attempt to prohibit that person from
making additional investments in the Fund.
Tax Information
Distributions
of the Fund’s net investment income (other than “qualified dividend income”) and
distributions of net short-term capital gains will be taxable to you as ordinary
income. Distributions of the Fund’s net capital gains reported as capital gain
dividends by the Fund will be taxable to you as long-term capital gains,
regardless of the length of time you have held shares of the Fund. If you are
investing through a tax-deferred arrangement, such as a 401(k) plan or an
individual retirement account, you may be subject to federal income tax on
withdrawals from tax-deferred arrangement at a later date.
Baron Technology Fund
Financial Intermediary
Compensation
If
you purchase Retail or Institutional Shares of the Fund through a broker, dealer
or other financial intermediary (such as a bank or financial adviser), the Fund,
Baron Capital, Inc., the Fund’s Distributor, BAMCO or their affiliates may pay
the intermediary for the sale of Fund shares and related services. These
payments may create a conflict of interest by influencing the broker, dealer or
other financial intermediary, including your salesperson, to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
|
| |
Information about the Funds |
|
Baron Funds® |
This
Prospectus is for Baron Select Funds, which currently has twelve series, Baron Partners Fund, Baron Focused Growth Fund, Baron International Growth Fund, Baron Real Estate Fund, Baron Emerging Markets Fund, Baron Global Advantage Fund, Baron Real Estate Income Fund, Baron Health Care Fund, Baron FinTech Fund, Baron New Asia Fund, Baron Technology Fund and Baron WealthBuilder Fund. If you are interested
in Baron WealthBuilder Fund, please visit
www.BaronFunds.com or contact us at 1-800-99BARON. If you are interested in
Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity
Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund or Baron Durable
Advantage Fund, which are series of Baron Investment Funds Trust, please visit
www.BaronFunds.com or contact us at 1‑800‑99BARON.
Investment Goals
Baron
Partners Fund |
Capital appreciation. |
Baron
Focused Growth Fund |
Capital appreciation. |
Baron
International Growth Fund |
Capital appreciation. |
Baron
Real Estate Fund |
Capital appreciation. |
Baron
Emerging Markets Fund |
Capital appreciation. |
Baron
Global Advantage Fund |
Capital appreciation. |
Baron
Real Estate Income Fund |
Capital appreciation and current income. |
Baron
Health Care Fund |
Capital appreciation. |
Baron
FinTech Fund |
Capital appreciation. |
Baron
New Asia Fund |
Capital appreciation. |
Baron
Technology Fund |
Capital appreciation. |
Additional
Investment Strategies
The
following is a description of additional investment strategies of Baron Partners Fund, Baron Focused Growth Fund, Baron
International Growth Fund, Baron Real Estate Fund, Baron Emerging Markets
Fund, Baron Global Advantage
Fund, Baron Real Estate Income
Fund, Baron Health Care Fund, Baron FinTech
Fund, Baron New Asia Fund and Baron Technology Fund (each, a “Fund” and
collectively, the “Funds”).
Baron Partners Fund, Baron Focused Growth Fund, Baron
Real Estate Fund, Baron Real Estate Income Fund, Baron Health
Care Fund, Baron FinTech Fund, and
Baron
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| |
Information about the Funds |
|
Baron Funds® |
Technology Fund may invest without limitation
in the securities of non-U.S. issuers in U.S. denominated form known as American
Depository Receipts. Baron Partners Fund
and Baron Focused Growth Fund may also
invest up to 25% of their respective total assets, and Baron Real Estate Fund, Baron Real Estate Income Fund, Baron Health Care Fund, Baron FinTech Fund and Baron Technology Fund may invest up to 35% of
their respective total assets, directly in the securities of non-U.S. issuers
that are not publicly traded in the U.S. and in Global Depository Receipts and
European Depository Receipts.
Baron International Growth Fund may invest up
to 25% of its total assets directly in the securities of U.S. issuers. In
addition, the Fund may invest without limitation in the securities of non-U.S.
issuers in U.S. denominated form known as American Depository Receipts.
Baron Emerging Markets Fund may invest up to
20% of its net assets in developed countries, frontier countries as defined by
the MSCI Frontier Markets (FM) Index and in the securities of non-U.S. issuers
in developed and frontier countries in U.S. denominated form known as American
Depository Receipts.
Baron Global Advantage Fund may invest without
limitation directly in the securities of U.S. and non-U.S. companies in any
form, including, in the case of U.S. companies, European Depository Receipts and
Global Depository Receipts, and in the case of non-U.S. companies, American
Depository Receipts. At all times, Baron Global
Advantage Fund will have investments in the securities of companies in at
least three countries outside of the U.S. Under normal conditions, at least 40%
of the Fund’s net assets will be invested in stocks of companies outside the
U.S. (at least 30% if foreign market conditions are not favorable).
Baron New Asia Fund may invest up to 20% of its
total assets directly in the securities of U.S. issuers. In addition, the Fund
may invest without limitation in the securities of non-U.S. issuers in U.S.
denominated form known as American Depository Receipts, Global Depository
Receipts and other types of depository receipts with respect to issuers located
in Asia.
The
Funds may also sell securities short. Short selling occurs when the Funds sell a
security that the Funds do not own. In order to do so, the Funds must borrow a
security to deliver it to the purchaser and later buy that security in the
market and return it to the lender. The Funds may establish short positions in
securities that the Adviser believes have limited growth prospects or are
over-priced, or in securities of companies the Adviser believes are poorly
managed or have highly leveraged balance sheets. The Funds may also establish a
short position in a security to hedge exposure to a particular company or to
hedge exposure to a certain industry or sector of the market. The Funds may also
short market indices to hedge against broad movements in the market. Generally,
when the Funds take a short position, the Adviser believes that the security’s
price will fall. If it falls sufficiently, the Funds will make money. If it
instead increases in price, the Funds will lose money. The
|
| |
Information about the Funds |
|
Baron Funds® |
Funds
will not use more than 35% of their respective total assets in maintaining short
positions. The Adviser, in its sole discretion, may decide not to sell any
securities short. The Adviser believes that the flexibility to execute a long
and short strategy may reduce the short-term volatility inherent in the equity
markets. However, the Adviser also believes short sales can be significantly
more risky than long investments and, as a result, expects to employ this tactic
relatively infrequently.
The
Funds may invest up to 15% of their respective net assets in illiquid securities
at the time of purchase. An illiquid security is one that a Fund reasonably
expects cannot be sold or disposed of in current market conditions in seven
calendar days or less without the sale or disposition significantly changing the
market value of the security. Such investments may include private equity
securities, private investments in public equity (“PIPE”) securities and other
restricted securities.
The
Funds may invest in debt securities of all types and repurchase agreements for
those securities. Debt securities include corporate bonds, government
securities, repurchase agreements, loans and loan participations,
mortgage-backed securities and other securities that the Funds believe have
debt-like characteristics, including hybrids and synthetic securities. Debt
securities are used by issuers to borrow money. The issuer usually pays a fixed,
variable, or floating rate of interest, and must repay the amount borrowed,
usually at the maturity of the security. Some debt securities, such as zero
coupon bonds, do not pay current interest but are sold at a discount from their
face values. The Funds may invest in debt securities that have a rating of, or
equivalent to, at least “BBB” by S&P Global Ratings or “Baa” by Moody’s
Investors Services, Inc., or if unrated, are judged by the Adviser to be of
comparable quality. Each Fund may invest up to 35% of its total assets in such
securities. Some debt securities purchased by the Funds may have very long
maturities. The length of time remaining until maturity is one factor that the
Adviser considers in purchasing a particular debt security.
The
Funds may, from time to time, take temporary defensive positions that are
inconsistent with the Funds’ principal investment strategies in attempting to
respond to adverse market, economic, political, or other conditions. In such
circumstances, the Adviser may invest all or a portion of the Funds’ assets in
cash or cash equivalents, such as money market instruments, which include U.S.
Government securities, certificates of deposit, short-term investment grade
corporate bonds and other short term debt instruments, and repurchase
agreements. Taking such a temporary defensive position may cause the Funds not
to achieve their investment goals.
Baron Focused Growth Fund, Baron International Growth
Fund, Baron Real Estate Fund, Baron Emerging Markets Fund, Baron Global Advantage Fund, Baron Real Estate Income Fund, Baron Health
Care Fund, Baron FinTech Fund, Baron New Asia Fund and Baron Technology Fund may borrow from a bank up
to 33% of the value of their respective total assets, including the amount
borrowed, as of the time the borrowing is made, subject to exceptions for
borrowings of up to 5% for temporary or emergency
|
| |
Information about the Funds |
|
Baron Funds® |
purposes. As
noted earlier in the Prospectus, Baron Partners
Fund may borrow money from banks to take advantage of opportunities to
invest (leverage) in an amount up to one-third of its total assets, which
include assets purchased with borrowed money.
Companies
in which the Funds invest may be subject to corporate actions, including mergers
and acquisitions. The Adviser may, in its discretion, choose to receive shares
of the combined entity where it concludes that it is in the best interest of the
Funds’ shareholders to do so. Such a decision may result in the Funds owning
shares of an issuer outside of the Funds’ market cap range.
The
Funds may enter into swap transactions.
The
Funds have additional investment strategies and restrictions that govern their
activities. For a list of these restrictions and more information about the
investment strategies, please see the “Investment Strategies and Risks” section
beginning on page 3 of the Statement of Additional Information (“SAI”).
Those strategies and restrictions that are identified as “fundamental” may only
be changed with shareholder approval, while the others may be changed by the
Board of Trustees (the “Board”) without shareholder approval upon at least 60
days’ notice.
Investment Criteria and
Process
In
making investment decisions for Baron Funds®, the Adviser seeks to invest
in businesses that it believes have:
1. |
|
significant
opportunities for growth; |
2. |
|
sustainable competitive
advantages; |
3. |
|
exceptional management;
and |
4. |
|
an attractive
valuation. |
The
Adviser’s research process includes examining companies from many perspectives
through numerous interviews with company managements and site visits. The
Adviser also interviews a company’s employees, as well as its customers,
suppliers, and competitors to determine whether the information gained from
these parties is consistent with senior management’s objectives and the
Adviser’s independent findings. Through these and other inquiries, the Adviser
becomes an expert in the industries in which it invests and acquires a thorough
understanding of the prospects of its investments in their competitive
landscape. The Adviser also studies industry data, statistics and trends. The
Adviser invests without regard for market trends.
The
Funds purchase stocks that the Adviser believes are attractively priced relative
to the Adviser’s projections of intrinsic value. The most critical component of
the Adviser’s investment decisions is the quality of a company, as measured by
its growth prospects, management, business model, competitive position, capital
structure and valuation.
|
| |
Information about the Funds |
|
Baron Funds® |
In
building its portfolios, the Adviser does not use a market benchmark, nor does
it, with the exception of Baron Real Estate
Fund, Baron Real Estate Income
Fund, Baron Health
Care Fund, Baron FinTech Fund and
Baron Technology Fund, aim to underweight or overweight any sectors
or industries. The Adviser seeks to invest in businesses before their long-term
growth prospects are appreciated by other investors. The Funds may make
significant investments in companies in which the Adviser has great conviction.
Of course, there can be no guarantee that the Funds will be successful at
achieving their investment goals.
The
Adviser believes that its analysis of environmental, social, and governance
(“ESG”) factors may benefit its research and investment process. Among the
resources the Adviser uses to generate ESG information that may be integrated
into its analysis are: proprietary company and industry-specific ESG research;
third-party ESG ratings and research; portfolio reviews of ESG-related data; and
ESG-specific engagements with investee companies. The Adviser also has
established publicly available ESG policies that incorporate ESG considerations,
including, an “ESG Policy,” “Exclusion Policy,” “Statement on Climate Change,”
and “Proxy Voting Policies and Procedures.” The Adviser believes that, in
addition to helping to identify and mitigate investment risk, ESG analysis also
may help to frame or illuminate potential opportunities within investee
companies for, among other benefits, revenue enhancement, cost reduction, margin
improvement, and improved returns on capital. Depending on the company, ESG
considerations may be an important part of the Adviser’s investment analysis,
and factoring the impact of these risks and opportunities into its valuation
could sway its investment decisions. Because the Funds are not ESG-focused
funds, these considerations may not be conclusive or employed in the analysis of
all companies, and securities of companies may be purchased and/or retained by
the Funds for reasons other than ESG factors.
The
Funds have a long-term outlook and often invest in businesses for several years.
The Funds hope for significant business growth and stock price appreciation over
that time period. As long-term investors in businesses, the Funds are designed
for long-term shareholders. The Funds are not designed, or intended to be
suitable, for investors who intend to purchase and then sell their Fund shares
within a 90 day period (please see the “Policies Regarding Frequent Purchases
and Redemptions of Fund Shares” section on pages 138-140 of this
Prospectus).
Additional Investment
Risks
Consumer Discretionary Sector. The
consumer discretionary sector may be affected by changes in domestic and
international economies, exchange and interest rates, inflation, competition,
consumers’ disposable income, consumer preferences, social trends and marketing
campaigns.
|
| |
Information about the Funds |
|
Baron Funds® |
Credit and Interest Rate. The market
value of debt securities is affected by changes in prevailing interest rates and
the perceived credit quality of the issuer. When prevailing interest rates fall
or perceived credit quality improves, the market value of the affected debt
securities generally rises. Conversely, when interest rates rise or perceived
credit quality weakens, the market value of the affected debt securities
generally declines. Recently, the U.S. Federal Reserve has been raising interest
rates from historically low levels. It may continue to raise interest rates. Any
additional interest rate increases in the future could cause the value of the
Fund’s holdings to decrease. The magnitude of these fluctuations will be greater
when the maturity of the debt securities is longer.
Currency. This refers to a decline
in the value of a foreign currency versus the U.S. dollar, which reduces the
dollar value of securities denominated in that currency. The overall impact on
the Funds’ holdings can be significant, unpredictable, and long-lasting,
depending on the currencies represented in the portfolio and how each one
appreciates or depreciates in relation to the U.S. dollar and whether currency
positions are hedged. Under normal conditions, the Funds do not engage in
extensive foreign currency hedging programs. Further, exchange rate movements
are volatile, the Funds’ attempts at hedging could be unsuccessful, and it may
not be possible to effectively hedge the currency risks of many developing
countries.
Cybersecurity. The use of the
Internet and other electronic media and technology exposes the Funds, and the
Funds’ service providers, and their respective operations, to potential risks
from cybersecurity attacks or incidents (collectively, “cyber incidents”). Cyber
incidents may include, for example, unauthorized access to systems, networks or
devices (such as, for example, through “hacking” activity), infection from
computer viruses or other malicious software code, and attacks which shut down,
disable, slow or otherwise disrupt operations, business processes or website
access or functionality. In addition to intentional cyber incidents,
unintentional cyber incidents can occur, such as, for example, the inadvertent
release of confidential information. Any cyber incident could adversely impact
the Funds and their shareholders and cause the Funds to incur financial loss and
expense, as well as face exposure to regulatory penalties, reputational damage,
and additional compliance costs associated with corrective measures. A cyber
incident may cause the Funds, or their service providers, to lose proprietary
information, suffer data corruption, lose operational capacity (such as, for
example, the loss of the ability to process transactions, calculate the Funds’
net asset value per share (“NAV”), or allow shareholders to transact business),
and/or fail to comply with applicable privacy and other laws. Among other
potentially harmful effects, cyber incidents also may result in theft,
unauthorized monitoring and failures in the physical infrastructure or operating
systems that support the Funds and their service providers. In addition, cyber
incidents affecting issuers in which the Funds invest could cause the Funds’
investments to lose value. The Adviser has established risk management
systems
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| |
Information about the Funds |
|
Baron Funds® |
reasonably
designed to seek to reduce the risks associated with cyber incidents. However,
there is no guarantee that the efforts of the Adviser or its affiliates, or
other service providers, will succeed, either entirely or partially. The nature
of malicious cyber attacks is becoming increasingly sophisticated and the Funds
and the Adviser, and its relevant affiliates, cannot control the cyber systems
and cybersecurity systems of issuers or third party service providers.
Depositary Receipts. Although
depositary receipts have risks similar to the securities that they represent,
they may also involve higher expenses and may trade at a discount (or premium)
to the underlying security. In addition, depositary receipts may not pass
through voting and other shareholder rights, and may be less liquid than the
underlying securities listed on an exchange.
Developing Countries. The Funds
invest in developing countries, which include countries in the MSCI Emerging
Markets (EM) Index, countries in the MSCI Frontier Markets (FM) Index and other
countries determined by the Adviser to be developing countries based on
classifications made by the International Monetary Fund or on country
characteristics similar to those of the countries in the EM and FM Indexes. The
definition of developing countries for Baron Emerging Markets Fund excludes
countries in the FM Index. Investments in developing countries are subject to
all of the risks of non-U.S. investing generally, and have additional heightened
risks due to a lack of established legal, political, business and social
frameworks to support securities markets, including: delays in settling
portfolio securities transactions; currency and capital controls; greater
sensitivity to interest rate changes; pervasiveness of corruption and crime;
currency exchange rate volatility; and inflation, deflation or currency
devaluation. These risks are greater for countries in the FM Index.
Failure of Financial Service
Providers. The failure of a bank, lender, broker, custodian or
other financial service provider (each, a “Financial Service Provider”), with
which the Funds or their portfolio companies have a commercial relationship
could adversely affect, among other things, the Funds’ and their portfolio
companies’ ability to access deposits, establish new lines of credit or utilize
existing lines of credit (or the costs and terms associated with such lines of
credit), consummate transactions and meet obligations, which in turn could have
a material adverse impact on the Funds and their portfolio companies. These and
any related events could negatively impact the value and liquidity of a Fund’s
investments, even beyond any direct exposure that the Fund may have to a
Financial Service Provider issuer or issuers directly affected by the failure of
a Financial Service Provider. While the Funds will seek to utilize Financial
Service Providers that they believe are creditworthy and capable of fulfilling
their obligations to the Funds, the failure of a Financial Service Provider may
be caused by a variety of factors that are outside of the Funds’ control,
including negative market sentiment, a rapidly changing interest rate
environment, a
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| |
Information about the Funds |
|
Baron Funds® |
“run”
on withdrawals, fraud, increase in defaulted loans, poor performance or
accounting irregularities.
Assets
held by regulated Financial Service Providers in the U.S. are frequently insured
up to stated amounts by organizations such as the Federal Deposit Insurance
Corporation, in the case of banks, or the Securities Investor Protection
Corporation, in the case of certain broker-dealers. Although governmental
intervention resulted in additional protections for depositors in connection
with the failures of Silicon Valley Bank and Signature Bank in March 2023,
concerns about the overall financial health and stability of the U.S. banking
sector remains high, with many bank stocks trading at significantly lower prices
than they did before the crisis began. Further governmental intervention may be
required to stabilize the U.S. banking sector in the future if additional U.S.
banks, particularly larger banks, appear to be at a risk of failure; however,
there is no guarantee that there will be such governmental intervention in the
future or that such governmental intervention will avoid the risk of loss of, or
delays in accessing, uninsured amounts. It is also possible that further
government intervention could result in other unforeseen adverse impacts on the
economy over the short or long term. At this time, it is not clear if there will
be additional bank failures.
Neither
the Funds nor their portfolio companies expect to limit deposit or other
accounts at any particular Financial Service Provider to the minimum insured
amounts. As a result, the Funds and their portfolio companies are subject to
losses in respect of uninsured accounts in the event of Financial Service
Provider failures. The Funds’ and their portfolio companies’ ability to spread
its banking and other financial relationships among multiple Financial Service
Providers may be limited by certain contractual arrangements, including
requirements of credit facilities (e.g., “subscription” lines) and other
business, operational and administrative considerations.
Financials Sector. The financials
industries are subject to extensive government regulation, can be subject to
relatively rapid change due to increasingly blurred distinctions between service
segments, and can be significantly affected by availability and cost of capital
funds, changes in interest rates, the rate of corporate and consumer debt
defaults, and price competition. Uncertainty in the banking and financial
systems can result in significant and widespread deterioration in market and
economic conditions by disrupting access to capital and other financial
services, which could adversely affect the performance of the Funds.
FinTech Companies. FinTech Companies
may be adversely impacted by government regulations, economic conditions and
deterioration in credit markets. These companies may have significant exposure
to consumers and businesses (especially small businesses) in the form of loans
and other financial products or services. FinTech Companies typically face
intense competition and potentially rapid product obsolescence. In addition,
many FinTech Companies store sensitive consumer
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| |
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|
Baron Funds® |
information
and could be the target of cybersecurity attacks and other types of theft, which
could have a negative impact on these companies. Many FinTech Companies
currently operate under less regulatory scrutiny than traditional financial
services companies and banks, but there is significant risk that regulatory
oversight could increase in the future. Higher levels of regulation could
increase costs and adversely impact the current business models of some FinTech
Companies. These companies could be negatively impacted by disruptions in
service caused by hardware or software failure, or by interruptions or delays in
service by third-party data center hosting facilities and maintenance providers.
FinTech Companies involved in alternative currencies may face slow adoption
rates and be subject to higher levels of regulatory scrutiny in the future,
which could severely impact the viability of these companies. FinTech Companies,
especially smaller companies, tend to be more volatile than companies that do
not rely heavily on technology. The customers and/or suppliers of FinTech
Companies may be concentrated in a particular country, region or industry. Any
adverse event affecting one of these countries, regions or industries could have
a negative impact on FinTech Companies. Companies across a wide variety of
industries are exploring the possible applications of fintech technologies. The
extent of such technologies versatility has not yet been fully
explored. Consequently, the Fund’s holdings may include equity securities
of operating companies that focus on or have exposure to a wide variety of
industries and the economic fortunes of certain companies held by the Fund may
not be significantly tied to such fintech technologies. Such technologies
ultimately may not have a material affect on the economic returns of the
companies in which the Fund invests.
Frontier Countries. The Fund’s
investments in frontier countries, which include countries in the MSCI Frontier
Markets (FM) Index, are subject to all of the risks of non-U.S. investing
generally and the risks of investing in developing countries, except that such
risks are greater in frontier countries.
General Stock Market. Fund losses
may be incurred due to declines in one or more markets in which Fund investments
are made. These declines may be the result of, among other things,
political, regulatory, market, economic or social developments affecting the
relevant market(s). In addition, turbulence as has recently been experienced,
caused, among other reasons, by increased inflation, tightening monetary policy
and interest rate increases by the US Federal Reserve or similar international
bodies, and reduced liquidity in financial markets may continue to negatively
affect many issuers, which could have an adverse effect on your Fund investment.
Events involving limited liquidity, defaults, non-performance or other adverse
developments that affect one industry, such as the financial services industry,
or concerns or rumors about any events of these kinds, have in the past and may
in the future lead to market-wide liquidity problems, may spread to other
industries, and could negatively affect the value and liquidity of the Funds’
investments. Global
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economies
and financial markets are increasingly interconnected, and conditions and events
in one country, region or financial market, such as Russia’s invasion of Ukraine
in February 2022 and the world-wide response to it, have and may continue to
adversely impact issuers and markets worldwide. The coronavirus disease 2019
(COVID-19) global pandemic and the aggressive responses taken by many
governments or voluntarily imposed by private parties, including closing
borders, restricting travel and imposing prolonged quarantines or similar
restrictions, as well as the closure of, or operational changes to, many
retail and other businesses, have had negative impacts, and in many cases severe
negative impacts, on markets worldwide. It is not known how long such impacts,
or any future impacts of other significant events described above, will or would
last, but there could be a prolonged period of global economic slowdown, which
may impact your Fund investment. Raising the ceiling on U.S. government debt has
become increasingly politicized. Any failure to increase the total amount that
the U.S. government is authorized to borrow could lead to a default on U.S.
government obligations, with unpredictable consequences for economies and
markets in the U.S. and elsewhere.
Growth Investing. Growth stocks can
react differently to issuer, political, market and economic developments than
the market as a whole and other types of stocks. Growth stocks tend to be more
expensive relative to their earnings or assets compared to other types of
stocks. As a result, because growth stocks tend to be sensitive to changes in
their earnings and to increasing interest rates and inflation, they tend to be
more volatile than other types of stocks. In response, from time to time, growth
investing as an investment style may go out of favor with investors.
Health Care Sector. Investments in
health care companies are subject to a number of risks, including the adverse
impact of legislative actions and government regulations. These actions and
regulations can affect the approval process for patents, medical devices and
drugs, the funding of research and medical care programs, and the operation and
licensing of facilities and personnel. Biotechnology and related companies are
affected by patent considerations, intense competition, rapid technology change
and obsolescence, and regulatory requirements of various federal and state
agencies. In addition, some of these companies are relatively small and have
thinly traded securities, may not yet offer products or may offer a single
product, and may have persistent losses during a new product’s transition from
development to production, or erratic revenue patterns. The stock prices of
these companies are very volatile, particularly when their products are up for
regulatory approval and/or under regulatory scrutiny.
Illiquid Securities. Illiquid
securities, which include securities that are not publicly traded such as
private equity securities, PIPE securities and other restricted securities, may
be difficult to sell or may be subject to agreements that prohibit or limit
their sale or other disposition. This investment approach requires a long-term
outlook and
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may
involve more risk. The Funds may invest up to 15% of their respective net assets
in illiquid securities at the time of purchase. Subsequently, if as a result of
changes in portfolio, illiquid securities exceed 15% of net assets, a Fund may
not acquire any additional illiquid securities and the Adviser will take such
steps as it considers appropriate to reduce the percentage within a reasonable
time. An illiquid security is one that a Fund reasonably expects to be unable to
sell or dispose of in current market conditions in seven calendar days or less
without the sale or disposition significantly changing the market value of the
security.
Industry Concentration. Certain
Funds are subject to the risks of industry concentration, because the Fund’s
investments may be concentrated in the securities of a single issuer or a small
number of issuers, including in a particular industry. As a result, the Fund
will be particularly exposed to the risks of that company or industry relative
to the risk exposure of investment companies holding a less-concentrated
portfolio of securities or those that seek to maintain near-index weightings in
their portfolio securities. Accordingly, in those cases, the Fund will be
disproportionately exposed to the market conditions, interest rates, and
economic, regulatory, or financial developments that significantly affect that
company or industry. For example, due to the size of their investment in Tesla
as of the date of this prospectus, the Baron Partners Fund and the Baron Focused
Growth Fund will be adversely impacted by developments affecting the automotive
and energy industries, as well as governmental environmental regulations.
(Please see “Tesla” in the “Information about the Funds—Additional Investment
Risks” section of the Prospectus and the “Principal Risks of Investing in the
Fund” sections of each summary section of the Prospectus.)
Information Technology
Sector. Companies in the information technology sector are
subject to rapid changes in technology product cycles; rapid product
obsolescence; government regulation; and increased competition, both
domestically and internationally, including competition from foreign competitors
with lower production costs. Information technology companies and companies that
rely heavily on technology tend to be more volatile than the overall market and
also are heavily dependent on patent and intellectual property rights. In
addition, information technology companies may have limited product lines,
markets, financial resources or personnel.
IT Services Industry. The IT
services industry can be significantly affected by competitive pressures, such
as technological developments, fixed-rate pricing, and the ability to attract
and retain skilled employees, and the success of companies in the industry is
subject to continued demand for IT services.
Initial Public Offerings. The prices
of securities purchased in initial public offerings (“IPOs”) can be very
volatile and/or decline shortly after the IPO. Securities issued in
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IPOs
have no trading history, and information about the issuing companies may be
available for only very limited periods. The effect of IPOs on a Fund’s
performance depends on a variety of factors, including the number of IPOs the
Fund invests in relative to the size of the Fund and whether and to what extent
a security purchased in an IPO appreciates or depreciates in value. If a Fund’s
historical performance was impacted by gains from IPOs and/or secondary
offerings, there is no guarantee that these results can be repeated or that a
Fund’s level of participation in IPOs and secondary offerings will be the same
in the future.
Industrials Sector. The Fund’s
investments are exposed to issuers conducting business in the Industrials
Sector. The Industrials Sector includes manufacturers and distributors of
capital goods such as aerospace and defense, building projects, electrical
equipment and machinery and companies that offer construction and engineering
services. It also includes providers of commercial and professional services
including printing, environmental and facilities services, office services and
supplies, security and alarm services, human resource and employment services,
research and consulting services. It also includes companies that provide
transportation services. The Fund is subject to the risk that the securities of
such issuers will underperform the market as a whole due to legislative or
regulatory changes, adverse market conditions and/or increased competition
affecting the Industrials Sector. The prices of the securities of companies
operating in the Industrials Sector may fluctuate due to the level and
volatility of commodity prices, the exchange value of the dollar, import
controls, worldwide competition, liability for environmental damage, depletion
of resources, and mandated expenditures for safety and pollution control
devices.
Interest Rate. Certain Funds are
subject to greater interest rate risk when compared to other stocks funds due to
the chance that periods of rising interest rates may cause REIT stock prices to
decline and the overall cost of borrowing to increase.
Large Positions. The Funds may
establish relatively large positions in companies in which the Adviser has great
conviction. Movement in the prices of securities in which the Funds hold large
positions could have a significant impact on the Funds’ NAVs. These large
positions may represent a significant part of a company’s outstanding stock, and
sales by the Funds or a Fund could adversely affect stock prices. A Fund’s
returns may be more volatile than those of a fund that does not establish large
positions.
Long-Term Outlook and
Projections. The Funds are designed for long-term investors
who are willing to hold investments for a substantial period of time. The cash
flows and valuations that the Adviser projects for a company may not be
achieved, which could negatively affect the impact of that stock in the
Funds’ portfolios.
Non-Diversification and Focus. Funds
that are less diversified across geographic regions, countries, industries, or
individual companies are generally riskier than more
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diversified
funds. If a Fund has invested a higher percentage of its total assets in a
particular region, sector or industry, changes affecting that region, sector or
industry may have a significant impact on the performance of that Fund’s overall
portfolio.
Non‑Diversified Portfolio. Certain
Funds are non‑diversified, which means they will likely have a greater
percentage of their assets in a single issuer than a diversified fund. As a
result, a non‑diversified fund will likely invest a greater percentage of its
assets in fewer issuers, and the performance of those issuers may have a greater
effect on the fund’s performance compared to a diversified fund. Thus, a
non‑diversified fund is more likely to experience significant fluctuations in
value, exposing it to a greater risk of loss in any given period than a
diversified fund. As of the date of this prospectus, a significant portion of
each of the Baron Partners Fund and the Baron Focused Growth Fund is invested in
Tesla stock due to dramatic upward market movements in Tesla’s share price. For
so long as these Funds maintain their investment in Tesla, their performance
will be significantly affected by the performance of Tesla stock and any decline
in the price of Tesla stock would materially and adversely affect your
investment in these Funds. (Please see “Tesla” in the “Information about the
Funds—Additional Investment Risks” section of the Prospectus and the “Principal
Risks of Investing in the Fund” sections of each summary section of the
Prospectus.)
Non-U.S. Securities. Investments in
non-U.S. securities may involve additional risks to those inherent in
investments in U.S. securities, including exchange rate fluctuations, political
or economic instability, the imposition of exchange controls, expropriation,
limited disclosure and illiquid markets. Risks can result from varying stages of
economic and political development, differing regulatory environments, trading
days, and accounting standards, uncertain tax laws, and higher transaction costs
of non-U.S. markets. Investments outside the United States could be subject to
governmental actions such as capital or currency controls, nationalization of a
company or industry, expropriation of assets, or imposition of high taxes.
Trading in the underlying securities of the Funds may take place in various
foreign markets on certain days when the Funds are not open for business and do
not calculate NAVs. As a result, NAVs may be significantly affected on days when
shareholders cannot make transactions.
Prepayment. Many types of debt
securities are subject to prepayment risk. Prepayment risk occurs when the
issuer of a security can repay principal prior to the security’s maturity.
Securities subject to prepayment can offer less potential for gains during a
declining interest rate environment and similar or greater potential for loss in
a rising interest rate environment. In addition, the potential impact of
prepayment features on the price of a debt security can be difficult to predict
and result in greater volatility.
Real Estate Industry. In addition to
general market conditions, the value of the Funds will be affected by the
strength of the real estate markets. Factors that could
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affect
the value of the Funds’ holdings include the following: overbuilding and
increased competition; increases in property taxes and operating expenses;
declines in the value of real estate; lack of availability of equity and debt
financing to refinance maturing debt; vacancies due to economic conditions and
tenant bankruptcies; losses due to costs resulting from natural disasters and/or
environmental contamination and its related clean-up; changes in interest rates;
changes in zoning laws; casualty or condemnation losses; variations in rental
income; changes in neighborhood values; and functional obsolescence and appeal
of properties to tenants.
REIT. REITs generally are dependent
upon management skills and may not be diversified. REITs are also subject to
heavy cash flow dependency, defaults by borrowers and self-liquidation. In
addition, REITs could possibly fail to qualify for favorable tax treatment under
applicable tax law. Various factors may also adversely affect a borrower’s or a
lessee’s ability to meet its obligations to the REIT. In the event of a default
by a borrower or lessee, the REIT may experience delays in enforcing its rights
as a mortgagee or lessor and may incur substantial costs associated with
protecting its investments.
Risks of Emphasizing a Region, Country, Sector or
Industry. If a Fund has invested a higher percentage of its
total assets in a particular region, country, sector or industry, changes
affecting that region, country, sector or industry may have a significant impact
on the performance of that Fund’s overall portfolio. The economies and financial
markets of certain regions — such as Latin America, Asia, and Europe and the
Mediterranean region — can be interdependent and may all decline at the same
time.
Risks Associated with China and Hong
Kong. The Chinese government exercises significant control
over China’s economy through its industrial policies, monetary policy,
management of currency exchange rates, and management of the payment of foreign
currency-denominated obligations. Changes in these policies could adversely
impact affected industries or companies in China. China’s economy, particularly
its export-oriented industries, may be adversely impacted by trade or political
disputes with China’s major trading partners, including the U.S. The United
States has imposed tariffs and other trade barriers on Chinese exports, has
restricted sales of certain categories of goods to China, and has established
barriers to investments in China. Trade disputes may adversely affect the
economies of the United States and its trading partners, as well as companies
directly or indirectly affected and financial markets generally. In addition,
the Chinese government is involved in a longstanding dispute with Taiwan that
has included threats of invasion. If the political climate between the United
States and China does not improve or continues to deteriorate, if China were to
attempt unification of Taiwan by force, or if other geopolitical conflicts
develop or get worse, economies, markets and individual securities may be
severely affected both regionally and globally, and the value of the Fund’s
assets may go down. In addition, as its consumer class continues to grow,
China’s domestically
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oriented
industries may be especially sensitive to changes in government policy and
investment cycles. If China were to exert its authority so as to alter the
economic, political or legal structures or the existing social policy of Hong
Kong, investor and business confidence in Hong Kong could be negatively affected
and have an adverse effect on the Fund’s investments.
Risks Associated with Investing in Chinese Companies
through Variable Interest Entities. The Fund may obtain
exposure to companies based or operated in China by investing through legal
structures known as variable interest entities (“VIEs”). Instead of directly
owning the equity securities of a Chinese company, a VIE enters into service and
other contracts with the Chinese company. Although the VIE has no equity
ownership of the Chinese company, the contractual arrangements permit the VIE to
consolidate the Chinese company into its financial statements. VIE investments
are subject to the risk that any breach of these contractual arrangements will
be subject to Chinese law and jurisdiction, that Chinese law may be interpreted
or change in a way that affects the enforceability of the VIE’s arrangements, or
that contracts between the Chinese company and the VIE may otherwise not be
enforceable under Chinese law. Thus, the remedies and rights of investors such
as the Fund may be limited in such circumstances. If these risks materialize,
the value of investments in VIEs could be adversely affected and the Fund could
incur significant losses with no recourse available.
Risks of Investing through Stock
Connect. The Fund may invest in A-shares listed and traded
through Stock Connect, or on such other stock exchanges in China which
participate in Stock Connect from time to time or in the future. Trading through
Stock Connect is subject to a number of restrictions that may affect the
Fund’s investments and returns. Moreover, Stock Connect A shares generally
may not be sold, purchased or otherwise transferred other than through Stock
Connect in accordance with applicable rules. The Stock Connect program is a
relatively new program and may be subject to further interpretation
and guidance. There can be no assurance as to the program’s continued
existence or whether future developments regarding the program may restrict
or adversely affect the Fund’s investments or returns.
Risks Associated with India. Government actions, bureaucratic
obstacles and inconsistent economic reform within the Indian government have had
a significant effect on the Indian economy and could adversely affect market
conditions, economic growth and the profitability of private enterprises in
India. Global factors and foreign actions may inhibit the flow of foreign
capital on which India is dependent to sustain its growth. Large portions of
many Indian companies remain in the hands of their founders (including members
of their families). Corporate governance standards of family-controlled
companies may be weaker and less transparent, which increases the potential for
loss and unequal treatment of investors. Religious, cultural and military
disputes persist in India and between India
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and
Pakistan (as well as sectarian groups within each country).
Short Sales. If the price of the
stock sold short increases after the sale, the Funds will lose money because
they will have to pay a higher price to repurchase the borrowed stock when they
close their short position. The Funds may not be able to close out a short
position at an acceptable price or time and the loss of value on a short sale is
theoretically unlimited. The Funds have to borrow the securities to enter into
the short sale. If the lender demands the securities be returned, the Fund must
deliver them promptly, either by borrowing from another lender or buying the
securities. If this occurs at the same time other short-sellers are trying to
borrow or buy the securities, a “short squeeze” could occur, causing the stock
price to rise and making it more likely that the Funds will have to cover their
short positions at an unfavorable price. This could happen regardless of whether
or not the prospects for a business are favorable or unfavorable.
Small- and
Mid-Sized Companies. The Adviser believes there is more
potential for capital appreciation in small- and mid-sized companies, but there
also may be more risk. Securities of small- and mid-sized companies may not be
well known to most investors, and the securities may be less actively traded
than those of large businesses. The securities of small- and mid-sized companies
may fluctuate in price more widely than the stock market generally, and they may
be more difficult to sell during market downturns. Small- and mid-sized
companies rely more on the skills of management and on their continued tenure.
Investing in small- and mid-sized companies requires a long-term outlook and may
require shareholders to assume more risk and to have more patience than
investing in the securities of larger, more established companies.
Specific Securities. Earnings, cash
flows and valuations projected by the Adviser for a long position may not be
achieved, which could negatively affect the impact of that stock in a Fund’s
portfolio. With respect to a short position held by a Fund, the company or the
securities markets may have favorable developments or news that positively
affect the stock market price of that company, which in turn, could result in a
loss for the Fund.
Swaps. The Funds may enter into
equity swap transactions. Equity swap transactions are entered into with
financial intermediaries through a direct agreement with the Counterparty,
generally an ISDA Master Agreement, the specific terms of which are negotiated
by the parties. The Funds may use equity swaps, or other derivative instruments,
for hedging purposes against potential adverse movements in security prices or
for non‑hedging purposes such as seeking to enhance return. The Funds may be
required to post collateral for such transactions. There is no central clearing
or, unless the parties provide for it, guaranty function in an OTC option or
derivative, including certain swaps. As a result, if the Counterparty fails to
make or take delivery of the security or other instrument, or fails to make a
cash settlement payment due in accordance with the option, the Funds will lose
any premium they paid for the option as well as any anticipated benefit of the
transaction.
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Taxes. Each of the Funds has elected
to be treated, and intends to qualify each year, as a “regulated investment
company” under Subchapter M of the Internal Revenue Code of 1986, as amended
(the “Code”). To qualify for the special U.S. federal income tax treatment
afforded to regulated investment companies, each Fund must meet certain
source-of-income, asset diversification and annual distribution requirements, as
discussed in the “U.S. Federal Income Taxation” section on pages 142-144 of this
Prospectus. If for any taxable year a Fund fails to qualify for the special U.S.
federal income tax treatment afforded to regulated investment companies, all of
the Fund’s taxable income will be subject to federal income tax at regular
corporate rates (without any deduction for distributions to the Fund’s
shareholders) and the Fund’s income available for distribution will be reduced.
(Please see the “U.S. Federal Income Taxation” section on pages 142-144 of
this Prospectus, and the “Taxation of the Funds” section on pages 46-53 in
the SAI.)
Technology. Technology companies,
including internet-related and information technology companies, as well as
companies propelled by new technologies, may present the risk of rapid change
and product obsolescence, and their successes may be difficult to predict for
the long term. Some technology companies may be newly formed and have limited
operating history and experience. Technology companies may also be adversely
affected by changes in governmental policies, competitive pressures and changing
demand. The securities of these companies may also experience significant price
movements caused by disproportionate investor optimism or pessimism, with little
or no basis in the companies’ fundamentals or economic conditions.
Volatility. The smaller size and
lower levels of liquidity in emerging markets, as well as other factors, may
result in changes in the prices of Asian securities that are more volatile than
those of companies in more developed regions. This volatility can cause the
price of the Fund’s shares to go up or down dramatically. Because of this
volatility, this Fund is better suited for long-term investors (typically five
years or longer).
Single Issuer. Single issuer risk is
the possibility that factors specific to an issuer to which the Fund is exposed
will affect the market prices of the issuer’s securities and therefore the net
asset value of the Fund. Due to the size of the investment in Tesla by each of
the Baron Partners Fund and the Baron Focused Growth Fund as of the date of this
prospectus, the net asset value of each of those Funds will be materially
impacted by the price of Tesla stock. (Please see “Tesla” in the “Information
about the Funds—Additional Investment Risks” section of the Prospectus and the
“Principal Risks of Investing in the Fund” sections of each summary section of
the Prospectus.)
Tesla. As of the date of this
prospectus, a significant portion of each of the Baron Partners Fund and the
Baron Focused Growth Fund is invested in Tesla stock. Therefore, each of those
Funds is exposed to the risk that were Tesla stock to lose significant value,
which could happen rapidly, each Fund’s performance would be
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adversely
affected. Before investing in either of those Funds, investors should carefully
consider publicly available information about Tesla. There can be no assurances
that either of those Funds will maintain its investment in Tesla, as the Adviser
maintains discretion to actively manage each of those Fund’s portfolios,
including by decreasing or liquidating the Fund’s investment in Tesla at any
time. However, for so long as each of those Funds maintains a substantial
investment in Tesla, the Fund’s performance will be significantly affected by
the performance of Tesla stock and any decline in the price of Tesla stock would
materially and adversely affect your investment in these Funds.
Share Classes
The
Funds offer three classes of shares, Retail Shares, Institutional Shares and
R6 Shares, which differ only in their ongoing fees and eligibility
requirements. Retail Shares are available to all investors, and investment
minimums range from $500 to $2,000 per Fund, depending on the account type.
Institutional Shares are for investments in the amount of $1,000,000 or more per
Fund. Institutional Shares are intended for certain financial intermediaries
that offer shares of the Baron Funds® through fee-based platforms,
retirement platforms or other platforms for which the financial intermediary
provides services and is not compensated by the Baron Funds® for those services.
Shareholders meeting the eligibility requirements for the Institutional Shares
may also purchase Institutional Shares directly without paying a sales charge or
any other additional fees. Baron WealthBuilder Fund, employees/Directors of the
Adviser and its affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and non-qualified) are not subject to the
eligibility requirements for Institutional Shares. R6 Shares are available
only to qualified 401(a) plans (including 401(k) plans, Keogh plans,
profit-sharing plans, money purchase pension plans, target benefit plans,
defined benefit pension plans and Taft-Hartley multi-employer pension plans)
(collectively, “Qualified Plans”), health savings accounts (HSAs), endowment
funds and foundations, any state, county or city, or its instrumentality,
department, authority, or agency, 403(b) plans, 457 plans, including 457(a)
governmental entity plans and tax- exempt plans, accounts registered to
insurance companies, trust companies and bank trust departments, investment
companies, both affiliated and not affiliated with the Adviser, and any entity
that is considered a corporation for tax purposes, including corporate
non-qualified deferred compensation plans of such corporations. R6 Shares are
not available to traditional and Roth Individual Retirement Accounts, SEPs,
SARSEPs and individual 403(b) plans. Institutional Shares are available to such
accounts or plans to the extent they are purchased through an eligible fee-based
program. R6 Shares are also not available to retail, to advisory fee-based wrap
programs or to adviser-sold donor-advised funds. There is no minimum initial
investment for Qualified Plans; however, the shares must be held through
plan-level or omnibus accounts held on the books of the Funds. All other
R6 eligible investors must
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meet
a minimum initial investment of at least $5,000,000 per Fund. For more
information, please see the “How to Purchase Shares” section on
pages 130-132 of this Prospectus. The Funds reserve the right, without
prior notice, to change the eligibility requirements of its share classes,
including the types of investors who are eligible to purchase each share
class.
Portfolio Holdings
A
description of the Funds’ policies and procedures with respect to the disclosure
of the Funds’ portfolio securities is available in the Funds’ SAI.
Management of the Funds
The
Board oversees the management of the Funds. A list of the Trustees and the
Funds’ officers may be found in the SAI. BAMCO is located at 767 Fifth Avenue,
New York, NY 10153, and is responsible for portfolio management. BAMCO serves as
investment adviser to other registered mutual funds, including Baron Asset Fund,
Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity Fund, Baron Fifth
Avenue Growth Fund, Baron Discovery Fund and Baron Durable Advantage Fund. Baron
Capital, Inc. (“BCI” or the “Distributor”), an SEC registered broker-dealer and
a member of the Financial Industry Regulatory Authority (“FINRA”) serves as the
distributor of the shares of the Funds. BAMCO and BCI, along with their
affiliate, Baron Capital Management, Inc., are wholly owned subsidiaries of
Baron Capital Group, Inc., a holding company (“BCG” or the “Firm”).
Ronald
Baron is the Founder, Chief Executive Officer and Chairman of the Firm and, with
his family, is the principal owner of BCG. Linda S. Martinson is the President
and Chief Operating Officer of the Firm and Chairman of the Funds and has been
with the Firm since 1983.
The
portfolio managers for the Funds are senior members of the Adviser’s research
team and are responsible for stock selection and overseeing portfolio structure
of the Funds.
Mr. Ronald
Baron has been the portfolio manager of Baron
Partners Fund and Baron Focused Growth
Fund since their respective inceptions as limited partnerships on
January 31, 1992 and May 31, 1996. Michael Baron has been the
co‑manager of Baron Partners Fund since August 28, 2018. David Baron has
been the co‑manager of Baron Focused Growth Fund since August 28, 2018.
Mr. Ronald Baron has been the portfolio manager of the Baron WealthBuilder Fund since its inception on
December 29, 2017. Michael Baron has been the co-manager of Baron
WealthBuilder Fund since December 8, 2020. In addition, Mr. Ronald Baron
has managed two registered mutual funds, Baron Asset Fund, a series of Baron
Investment Funds Trust, since its inception on June 12, 1987 until
January 23, 2008, and Baron Growth Fund,
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a
series of Baron Investment Funds Trust, since its inception on December 31,
1994 to the present. Mr. Ronald Baron has managed money for others since
1975. Mr. Ronald Baron is also a senior member of the Adviser’s research
team. The Funds’ SAI provides additional information about Mr. Ronald
Baron’s compensation, other accounts managed by Mr. Ronald Baron and his
ownership in shares of the Funds.
Mr. Michael
Baron has worked at the Adviser as an analyst since September of 2004. From 2003
to 2004, Mr. Michael Baron worked at Glenhill Capital as a research
analyst.
Mr. David
Baron has worked at the Adviser as an analyst since July of 2005. From 2002 to
2005, Mr. David Baron worked at Jeffries and Company as a gaming
analyst.
Michael
Kass has been the portfolio manager of Baron
International Growth Fund, Baron Emerging
Markets Fund, and co-manager of Baron New
Asia Fund since their respective inceptions on December 31,
2008, December 31, 2010, and April 30, 2021. He joined the Adviser in 2007
to develop an international growth strategy. From 1996 until 2003,
Mr. Kass co-managed the Furman Selz Large Cap Growth portfolios, and
beginning in 1998, he co‑founded the Artemis Funds, a long-short strategy with a
similar discipline as Large Cap Growth. In 2003, Mr. Kass formed Artemis
Advisors, LLC to acquire the Artemis Funds from ING Furman Selz. Mr. Kass
spent ten years in equity investment management at ING Furman Selz, and was
named a senior managing director and portfolio manager in 1996. From 1989 until
1993, he was an associate in investment banking at Lazard Frères. Mr. Kass
began his career in 1987 as an analyst in corporate finance at Bear,
Stearns & Co. Inc.
Jeffrey
A. Kolitch has been the portfolio manager of Baron Real Estate Fund and Baron Real Estate Income Fund since their
respective inceptions on December 31, 2009 and December 29, 2017. He joined
the Adviser in 2005 to develop a real estate growth strategy. From 1995 until
2005, Mr. Kolitch worked at Goldman Sachs & Co., starting as an
associate in the Equities Division where he became a Vice President in 1999. In
2000, he was selected to join the Equity Capital Markets Group as a Vice
President in New York, and in 2002, Mr. Kolitch was named a Managing
Director in Hong Kong. From 2004 until 2005, he served as a Managing Director in
Goldman Sachs’ Equity Capital Markets Group in New York.
Alex
Umansky has been the portfolio manager of Baron
Global Advantage Fund since its inception on April 30, 2012. In
addition, he has been the portfolio manager of Baron Fifth Avenue Growth Fund
and Baron Durable Advantage Fund, each a series of Baron Investment Funds Trust,
since their respective inceptions on November 1, 2011 and December 29,
2017. Prior to joining the Adviser, Mr. Umansky was a co-manager of the
Morgan Stanley Opportunity Fund from 2007 to 2011, the Morgan Stanley Global
Opportunity Fund from 2008 to 2011, and the Morgan Stanley International
Opportunity Fund and the Morgan Stanley International Advantage
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Baron Funds® |
Fund
from 2010 to 2011. Prior to that, Mr. Umansky was the lead manager of the
Morgan Stanley Institutional Technology Strategy from 1998-2004 and the Morgan
Stanley Technology Fund from 2000 to 2003, and a co-manager of the Morgan
Stanley Information Fund from 2004 to 2005. Prior to that, Mr. Umansky was
a co-manager of the Morgan Stanley Small Company Growth Fund from 1999 to 2002.
Mr. Umansky began his investment management career as a research analyst at
Morgan Stanley Investment Management covering technology and business services
for Morgan Stanley’s U.S. equity growth products.
Neal
Kaufman has been the portfolio manager of the Baron Health Care Fund since its inception on
April 30, 2018. Mr. Kaufman has worked at the Adviser as an analyst
since March of 2005. From 2001 to 2005, he worked at Credit Suisse First Boston
as a vice president and managed a portfolio in the Equity Proprietary Trading
group. From 1996 to 2001, Mr. Kaufman practiced corporate law in New York.
He graduated cum laude from Yale College with a B.A. in History in 1993, from
Columbia Law School with a J.D. in 1996 and from Columbia Business School with
an Executive M.B.A. in 2002.
Josh
Saltman has been the portfolio manager of the Baron FinTech Fund since its inception on
December 31, 2019. Mr. Saltman has worked at the Adviser as an analyst since
August of 2011. From 2006 to 2009, Mr. Saltman worked at TA Associates as an
associate. From 2004 to 2006, Mr. Saltman worked at Morgan Stanley as an analyst
in the Investment Banking division. He graduated summa cum laude from Princeton
University with a B.S. in Operations Research and Financial Engineering in 2004
and from Columbia Business School with an M.B.A. in 2011.
Anuj
Aggarwal has been the co-manager of the Baron
New Asia Fund since its inception on April 30, 2021. Mr. Aggarwal has
worked at the Adviser as an analyst since 2012. In 2020, Anuj was named
assistant portfolio manager of Baron Emerging Markets Fund. From 2005 to 2007,
Anuj was an investment banking analyst at J.P. Morgan Securities. From 2007 to
2009, he worked at Crestview Partners as an associate. In the summer of 2011 he
was an associate at Eagle Capital Management. Anuj graduated from MIT with a
B.S. in Management Science in 2005 and from Columbia Business School with an
M.B.A. in 2012.
Michael
Lippert has been co-manager of Baron Technology
Fund since its inception on December 31, 2021. In addition, he has
been the portfolio manager of Baron Opportunity Fund, a series of Baron
Investment Funds Trust, since March 3, 2006. Mr. Lippert has worked at
the Adviser as an analyst since December of 2001. From April 2001 to December
2001, Mr. Lippert was a research analyst and general counsel for JLF Asset
Management, and from 2000 to 2001, he was a partner at Baker &
Botts.
Ashim
Mehra has been the portfolio manager of Baron Innovators Fund, a private fund,
since its inception on April 30, 2018 and the co-manager of Baron Technology Fund since its inception on December 31, 2021.
Mr. Mehra joined the Adviser in 2011
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Baron Funds® |
as
a research analyst. From 2004 to 2011, Mr. Mehra worked at Mazama Capital as a
telecom, media and technology portfolio manager. From 2002 to 2004, Mr. Mehra
worked at RBC as a senior equity research associate. From 1999 to 2002, he
co‑founded and worked at iExplore, an online travel company. From 1996 to 1999,
Mr. Mehra worked at PWC as a senior strategy consultant.
Each
of the portfolio managers named above may serve as portfolio managers or
analysts for other products offered by affiliates that could conflict with their
responsibilities to the Funds of which they are portfolio managers. The Funds’
SAI provides additional information about the portfolio managers’ compensation,
other accounts managed by the portfolio managers and the portfolio managers’
ownership in shares of the Funds.
For
its services, the Adviser receives a fee payable monthly from the assets of
Baron Partners Fund, Baron Focused Growth Fund, Baron Real Estate Fund, Baron Emerging Markets Fund, and Baron New Asia Fund equal to 1% per annum
of each Fund’s average daily NAVs. Baron
International Growth Fund, Baron Global Advantage Fund, Baron Real Estate Income Fund, Baron Health Care Fund, Baron FinTech Fund and Baron Technology Fund pay the Adviser per annum
0.88%, 0.85%, 0.75%, 0.75%, 0.80%, and 0.80% respectively, for average daily
NAVs of each Fund. The Adviser is contractually obligated to reimburse certain
expenses of the Funds so that their net annual operating expenses (exclusive of
portfolio transaction costs, interest, dividend and extraordinary expenses) are
limited to:
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Fund |
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Retail Shares |
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Institutional Shares |
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R6 Shares |
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Baron
Partners Fund |
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1.45% |
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1.20% |
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1.20% |
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Baron
Focused Growth Fund |
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1.35% |
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1.10% |
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1.10% |
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Baron
International Growth Fund |
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1.20% |
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0.95% |
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0.95% |
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Baron
Real Estate Fund |
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1.35% |
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1.10% |
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1.10% |
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Baron
Emerging Markets Fund |
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1.50% |
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1.25% |
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1.25% |
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Baron
Global Advantage Fund |
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1.15% |
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0.90% |
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0.90% |
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Baron
Real Estate Income Fund |
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1.05% |
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0.80% |
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0.80% |
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Baron
Health Care Fund |
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1.10% |
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0.85% |
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0.85% |
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Baron
FinTech Fund |
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1.20% |
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0.95% |
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0.95% |
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Baron
New Asia Fund |
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1.45% |
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1.20% |
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1.20% |
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Baron
Technology Fund |
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1.20% |
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0.95% |
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0.95% |
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A
discussion regarding the basis for the approval by the Board of the investment
advisory contract for each Fund is available in the Funds’ Semi-Annual Financial
Report to Shareholders for the six months ended June 30, 2022.
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Baron Funds® |
How Your Shares are
Priced
The
Funds’ share prices or NAVs are calculated as of the scheduled close of the
regular trading session (usually 4 p.m. E.T. or such other time as of which the
Funds’ NAVs are calculated (the “NAV Calculation Time”)) on the New York Stock
Exchange (the “Exchange”) on any day the Exchange is scheduled to be open. Your
purchase or sale will be priced at the next NAV calculated after your order is
accepted by SS&C Global Investor & Distribution Solutions, Inc. (the
“Transfer Agent”). The Funds may change the time at which orders are priced if
the Exchange closes at a different time or an emergency exists. The Exchange is
closed on weekends and most national holidays, including New Year’s Day, Martin
Luther King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Juneteenth
National Independence Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day. The NAVs will not be calculated on days when the Exchange is
closed for trading. Foreign securities held by the Funds may trade on days when
the Funds do not calculate their NAVs and thus may affect the Funds’ NAVs on
days when investors will not be able to purchase or sell (redeem) Funds’ shares.
The Funds have agreements with certain financial intermediaries that authorize
them to accept orders or designate third parties to accept orders on behalf of
the Funds. If you place your order through these financial intermediaries, the
order will be considered received when they accept the order. Those orders will
be priced at the next NAV calculated after acceptance of the order by the
financial intermediary or its agent.
Portfolio
securities traded on any national exchange are valued based on their last sale
price on the exchange where such shares are principally traded. For securities
traded on NASDAQ, the Funds use the NASDAQ Official Closing Price. If there are
no sales on a given day, the value of the security may be the average of the
most recent bid and asked quotations on such exchange or the last sale price
from a prior day. Where market quotations are not readily available, or, if in
the Adviser’s judgment, they do not accurately reflect the fair value of a
security, or an event occurs after the market close but before the Funds are
priced that materially affects the value of a security, the security will be
valued by the Adviser, which serves as the Funds’ valuation designee under Rule
2a-5 under the 1940 Act. The Adviser has a Fair Valuation Committee (the
“Committee”) comprised of senior management representatives. Factors the
Committee may consider when valuing a security include whether a current price
is stale, there is recent news, the security is thinly traded, transactions are
infrequent or quotations are genuine. There can be no guarantee, however, that a
fair valuation used by the Funds on any given day will more accurately reflect
the market value of an investment than the closing price of such investment in
its market.
U.S.
Government obligations, money market instruments, and other debt instruments
having 60 days or less remaining until maturity are valued at amortized cost.
Debt
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Baron Funds® |
instruments
having a greater remaining maturity will be valued on the basis of prices
obtained from an independent pricing service or at the mean of the bid and ask
prices from a dealer maintaining an active market in that security. The value of
the Funds’ investments in convertible bonds is determined primarily by obtaining
valuations from independent pricing services based on readily available bid
quotations or, if quotations are not available, by methods which include various
considerations such as yields or prices of securities of comparable quality,
coupon, maturity and type; indications as to values from dealers; and general
market conditions. Other inputs used by an independent pricing service to value
convertible bonds generally include underlying stock data, conversion premiums,
listed bond and preferred stock prices and other market information which may
include benchmark curves, trade execution data, and sensitivity analysis, when
available. Open-end investment companies, including securities lending
collateral invested in registered investment company money market funds, are
valued at their NAV each day.
Non-U.S.
equity securities are valued on the basis of their most recent closing market
prices and translated into U.S. dollars at the NAV Calculation Time, except
under the circumstances described below. Most foreign markets close before the
NAV Calculation Time. For securities primarily traded in the Far East, for
example, the most recent closing prices may be as much as 15 hours old at the
NAV Calculation Time. As a result, the Adviser uses a third-party pricing
service to assist in determining fair value of foreign securities. This service
utilizes a systematic methodology in making fair value estimates. The Adviser
may also fair value securities in other situations, for example, when a
particular foreign market is closed but the Funds are open. The Adviser cannot
predict how often it will use closing prices or how often it will adjust those
prices. As a means of evaluating its fair value process, the Adviser routinely
compares closing market prices, the next day’s opening prices in the same
markets, and the adjusted prices. Other mutual funds may adjust the prices of
their securities by different amounts.
How to
Purchase Shares
You
may purchase shares of the Funds directly without paying a sales charge. Please
use the Funds’ “Regular Account Application” form to open an account. Special
applications are available to open individual retirement accounts such as
Traditional, Roth, SEP or Simple IRAs (collectively “IRAs” or individually an
“IRA”) and Coverdell accounts. All applications can be found at
www.BaronFunds.com/application-forms. Please complete the application form in
its entirety. If you do not provide all the information requested, your
application will be returned to you and your investment will not be
established.
The
Funds offer three classes of shares, Retail Shares, Institutional Shares and
R6 Shares, which differ only in their ongoing fees and eligibility
requirements. The
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Baron Funds® |
minimum
initial investment for the Retail Shares is $2,000 per Fund, unless you choose
to invest through the Baron Automatic Investment Plan (please see the “Baron
Automatic Investment Plan” section on page 134 of this Prospectus). The minimum
initial investment for Institutional Shares is $1,000,000 per Fund.
Institutional Shares are intended for certain financial intermediaries that
offer shares of the Baron Funds® through fee-based platforms,
retirement platforms or other platforms for which the financial intermediary
provides services and is not compensated by the Baron Funds® for those services.
Shareholders meeting the eligibility requirements for the Institutional Shares
may also purchase Institutional Shares directly without paying a sales charge or
any other additional fees. Baron WealthBuilder Fund, employees/Directors of the
Adviser and its affiliates and Trustees of the Baron Funds® and employer sponsored
retirement plans (qualified and non-qualified) are not subject to the
eligibility requirements for Institutional Shares. R6 Shares are available only
to qualified 401(a) plans (including 401(k) plans, Keogh plans, profit-sharing
plans, money purchase pension plans, target benefit plans, defined benefit
pension plans and Taft-Hartley multi-employer pension plans) (collectively,
“Qualified Plans”), health savings accounts (HSAs), endowment funds and
foundations, any state, county or city, or its instrumentality, department,
authority, or agency, 403(b) plans, 457 plans, including 457(a) governmental
entity plans and tax- exempt plans, accounts registered to insurance companies,
trust companies and bank trust departments, investment companies, both
affiliated and not affiliated with the Adviser, and any entity that is
considered a corporation for tax purposes, including corporate non-qualified
deferred compensation plans of such corporations. R6 Shares are not available to
traditional and Roth Individual Retirement Accounts, SEPs, SARSEPs and
individual 403(b) plans. Institutional Shares are available to such accounts or
plans to the extent they are purchased through an eligible fee-based program. R6
Shares are also not available to retail, advisory fee-based wrap programs or to
adviser-sold donor-advised funds. There is no minimum initial investment for
Qualified Plans; however, the shares must be held through plan-level or omnibus
accounts held on the books of the Funds. All other R6 eligible investors must
meet a minimum initial investment of at least $5,000,000 per Fund.
At
the sole discretion of the Adviser, the initial investment minimum may be waived
for certain investors. In addition, the Funds will not enforce the minimum for
accounts opened through certain financial intermediaries and administrators that
may not have systems that are able to enforce the Funds’ minimums. There is no
minimum for subsequent purchases, except for purchases made through the Funds’
website or through the Baron Automatic Investment Plan (please see the “Special
Information About the Baron Funds® Website” section on pages
141-142 of this Prospectus). The Funds may reject any proposed purchase if the
purchase would violate the Funds’ policies on short-term trading (please see the
“Policies Regarding Frequent Purchases and Redemptions of Fund Shares” section
on pages 138-140 of this Prospectus).
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Baron Funds® |
Anti-Money Laundering
Regulations. As part of the Funds’ legal responsibility to
fight the funding of terrorism and money laundering activities, the Funds
require a detailed verification of the identity of a shareholder and individuals
with authority or control over accounts opened by entities such as corporations,
partnerships or trusts. When you open an account, the Funds will request such
information as is necessary to verify your identity as a shareholder, as well as
the identities of any individuals with authority or control over accounts being
opened by entities. The information requested includes name, address, date of birth and
U.S. taxpayer identification number. U.S. military personnel with an
APO/FPO address are permitted to invest in the Funds. Please make sure to
provide all required information. Incomplete information will delay your
investment. The Funds will not process your investment until all required
information has been provided. While the Funds are intended for U.S. investors,
foreign investors who do not have U.S. taxpayer identification numbers may be
permitted to invest in the Funds through a broker-dealer registered with the SEC
that has sufficient anti-money laundering policies and procedures in place. The
Funds may accept direct investment from foreign investors who do not have U.S.
taxpayer identification numbers in the sole discretion of the Adviser.
Your
share purchase will receive the NAV of the Funds on the date that all required
information has been provided to the Funds’ Transfer Agent. United Missouri Bank
of Kansas City, N.A. will hold your investment check until all required
anti‑money laundering information has been received. Investment funds received
by bank wire will also be held by United Missouri Bank of Kansas City, N.A. If
the application is not complete, the Funds’ representatives will attempt to
collect any missing information by contacting you directly. If you purchase the
Funds through a broker, dealer or other financial intermediary that is subject
to the USA PATRIOT Act, such broker, dealer or other financial intermediary will
be responsible for collecting the required information.
If
the application is complete, the Funds will process the investment and will take
steps to verify your identity. The Funds may request additional information or
documents, if needed, to verify your identity. If the Funds cannot verify your
identity, the account will be closed and you will receive proceeds based on the
next NAV calculated for the Fund(s) in which you invested. If the Funds deem it
necessary, and upon written notice to you, the payment of redemption proceeds to
you may be suspended to comply with the anti-money laundering regulations
applicable to the Funds. The Funds will share the identity of their shareholders
with federal authorities if required to do so by law and may report a failure to
verify a shareholder’s identity with federal authorities in accordance with
applicable law.
State Unclaimed Property
Laws. Depending upon the State in which your account is
opened, your property may be transferred to the appropriate State if no activity
occurs in your account within the time period specified by State law. You should
familiarize yourself with the laws of the State in which you have your
account.
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Baron Funds® |
How to Invest with the
Baron Funds®
By Mail
To open a new account, send your
signed application form with your check payable to BARON FUNDS® to:
Baron
Funds®
P.O.
Box 219946
Kansas
City, MO 64121-9946
or
by overnight mail to:
Baron
Funds®
430
West 7th Street
Kansas
City, MO 64105-1514
Please make sure you indicate how much money you want
invested in each Fund. Checks must be payable in U.S. dollars
and must be drawn on a U.S. bank. Third party checks, credit cards, money
orders, traveler’s checks, starter checks, bearer securities and cash will not
be accepted. For IRAs and Coverdell accounts, please specify the year for which
the contribution is being made. If no year is specified, it will be applied as a
current year contribution.
When adding to your account, please complete
the additional investment form provided at the bottom of your account statement
or purchase confirmation. If you do not have that form, please write a note with
the account number indicating in which Fund the investment should be made and
send it along with your additional investment check. Please note that any
investment funded by check will be subject to a fifteen-day hold or be held
until the check clears to prevent any fraudulent transactions. Please send the
check to either the regular or overnight address.
By Wire
You
can make your initial or additional investments in the Funds by wire. To do so,
please: (1) contact the Funds’ Transfer Agent at 1-800-442-3814 to obtain
an account number; (2) complete and sign the application form and mail it
to Baron Funds®, P.O. Box
219946, Kansas City, MO 64121‑9946; (3) instruct your bank to wire
funds to the United Missouri Bank of Kansas City, N.A., ABA
No. 1010-0069-5, Account No. 98‑7037‑101‑4; and (4) be sure to
specify the following information in the wire: (a) the Fund you are buying;
(b) your account number; and (c) your name. The Funds are not
responsible for delays in the wiring process.
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Baron Funds® |
By Telephone
Once
your account is open, you may add to your investment (if you have banking
instructions on your account) or exchange among the Baron Funds® by speaking with a
representative or by calling our automated voice recognition system “BaronTel,”
unless you specifically declined either of these options on your account
application. Please call 1-800-442-3814 to invest or exchange by telephone
(please see the “How to Exchange Shares” section on page 140 of this
Prospectus). By choosing this option to make a purchase, you authorize the Funds
to draw on your bank account. Please note that for an exchange, your accounts
must be identically registered. If you need to add this option to your account,
please call 1‑800‑442‑3814.
By Internet
You
may open a new account through the Baron Funds® website by going to
www.BaronFunds.com/myaccount (please see the “Special Information about the
Baron Funds® Website”
section on pages 141-142 of this Prospectus). You may add to an existing account
by going to www.BaronFunds.com/myaccount. You must have Automated Clearing House
(“ACH”)/Banking instructions on your account in order to make online
purchases.
Baron Automatic Investment Plan — Retail Shares Only
Baron
Automatic Investment Plan (the “Plan”) is an automatic investment plan offered
by the Funds. For any account starting with an investment of less than $2,000,
the minimum initial investment is $500 with subsequent monthly investments of as
little as $50, which are automatically invested from your checking account. Once
your investment has reached $2,000, you have the option of either discontinuing
the Plan by contacting the Funds or continuing to automatically invest in the
Funds. If your initial investment is greater than $2,000 and you wish to utilize
the Plan for your account, please contact the Funds. To enroll in the Plan,
please complete the Enrollment Form (available by calling 1-800-99BARON), attach
a voided check and mail with your application to either Baron Funds®, P.O. Box 219946, Kansas
City, MO 64121-9946 or to the overnight address, Baron Funds®, 430 West 7th Street, Kansas
City, MO 64105-1514.
If
your account has already been established without banking instructions and you
wish to enroll in the Plan, please send a Signature Validation Program (“SVP”)
stamped letter of instruction along with a voided check to the regular or
overnight address. You can obtain a SVP signature guarantee from most securities
firms or banks but not from a notary
public.
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Baron Funds® |
Through Brokers, Dealers or Other Financial
Intermediaries
You
may purchase shares of the Funds through a broker, dealer or other financial
intermediary that may charge a transaction fee. Such transaction fees may
include commissions on brokerage transactions for share classes that do not
charge a fee for sales or distribution (e.g., Institutional Shares or
R6 Shares). Certain brokers, dealers, or other financial intermediaries may
refer to such shares as clean shares. If you purchase shares directly from the
Funds, no transaction fee is charged. The Funds also participate in programs
with many financial intermediaries where no transaction fee is charged.
How to Redeem Shares
You
may redeem Fund shares by any of the methods described below. If you are selling
shares in an IRA or Coverdell account, please read the information in the IRA or
Coverdell plan document. Redemptions will not be made until all of the
requirements are met. Redemptions are priced at the next NAV calculated after
your redemption request is received in the proper form. If you have recently
purchased shares directly in the Baron Funds®, your redemption proceeds
may not be sent to you until the purchase check has cleared your bank, which
generally occurs within fifteen calendar days.
You
may receive the proceeds by any one of the following methods: (a) we will
mail a check to the address to which your account is registered (usually within
seven days); (b) we will transmit the proceeds by electronic funds transfer
to a previously designated bank account (usually a two banking day process); or
(c) we will wire the proceeds to a pre-authorized bank account for a $10
fee that will be deducted from your redemption proceeds (usually a next banking
day process). Banking instructions can be added to your account or changed by
sending in a SVP stamped letter of instruction. Please include your account
number. Payment of redemption proceeds may take longer than the number of days
the Funds typically expect and may take up to seven days after receipt of the
redemption request by the Transfer Agent in proper form.
Each
Fund will pay in cash all requests for redemption by any Fund shareholder of
record, limited in amount with respect to each shareholder during any 90-day
period to the lesser of (1) $250,000 or (2) 1% of the net asset value of the
Fund at the beginning of such period. In addition to using cash it holds in its
portfolio or selling portfolio securities to generate cash, the Fund may draw
upon an unsecured credit facility for temporary or emergency purposes to meet
redemption requests. Any additional redemption requests by a shareholder may be
satisfied through an in-kind redemption. Generally, a redemption in-kind may be
made under the following circumstances: (1) the Adviser determines that a
redemption in-kind (i) is more advantageous to the Fund (e.g., due to
advantageous tax consequences or lower transaction costs) than
selling/purchasing portfolio securities, (ii) will not favor the
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Baron Funds® |
redeeming
shareholder to the detriment of any other shareholder or the Fund and
(iii) is in the best interests of the Fund; (2) to manage liquidity risk
(i.e., the risk that the Fund could not meet redemption requests without
significant dilution of remaining investors’ interests in the Fund); (3) in
stressed market conditions; or (4) subject to the approval of the Fund’s board
in other circumstances identified by the Adviser. Securities distributed in
connection with any such redemption in-kind are expected to generally represent
a shareholder’s pro rata portion of assets held by the Fund immediately prior to
the redemption, with adjustments as may be necessary in connection with, for
example, certain derivatives, restricted securities, odd lots or fractional
shares. Any securities distributed in-kind will remain exposed to market risk
until sold, and a shareholder may incur transaction costs and taxable gain when
selling the securities.
By Mail
Please
write a letter that includes the following information: the name of the
registered owner(s) of the account; the name of the Fund(s); the number of
shares or dollar amount to be redeemed; and the account number. The letter must
be signed in exactly the same way the account is registered, including the
signature of each joint owner, if applicable. Mail the request to the Transfer
Agent at Baron Funds®,
P.O. Box 219946, Kansas City, MO 64121-9946.
You
will need to have your signature Medallion guaranteed if your redemption is more
than $100,000 per fund or in certain situations (please see the “Special
Information About Redemptions” section on pages 137-138 of this
Prospectus).
By Telephone
You
are automatically granted the telephone redemption option when you open your
account, unless you decline the option on your account application or by calling
1‑800‑442‑3814. Once made, your telephone request cannot be changed. There is no
minimum amount that you must redeem by telephone from your account. The maximum
amount that you may redeem by telephone is $100,000 per Fund per business
day.
The
Funds have the right to refuse a telephone redemption if they believe that it is
advisable to do so. The Funds will not be responsible for any fraudulent
telephone order as long as the Funds and their Transfer Agent use reasonable
procedures to confirm that telephone instructions are genuine.
By Internet
You
may make a redemption request of $100,000 or less per Fund per business day
online by going to www.baronfunds.com/myaccount (please see the “Special
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Baron Funds® |
Information
about the Baron Funds®
Website” on pages 141-142 of the Prospectus). The ability to redeem by Internet
applies to regular accounts (non-fiduciary) only.
The
Funds have the right to refuse an online redemption if they believe that it is
advisable to do so. The Funds will not be responsible for any fraudulent online
order as long as the Funds and their Transfer Agent use reasonable procedures to
confirm that online instructions are genuine.
By Broker, Dealer or Other Financial Intermediaries
Accounts
may redeem Fund shares held by a broker, dealer or other financial intermediary
that may charge you a fee. The Funds may have special redemption procedures with
certain brokers, dealers, or other financial intermediaries.
Special Information about Redemptions
You
will need to have your signature Medallion guaranteed in certain situations,
such as:
∎ |
|
Written
requests to wire redemption proceeds (if not previously authorized on the
Account Application); |
∎ |
|
Sending
redemption proceeds to any person, address, or bank account not on
record; |
∎ |
|
Transferring
redemption proceeds to a Baron Funds® account with a
different registration (name/ownership) from yours;
and |
∎ |
|
If
the address of record has been changed within 30 days of the redemption
request. |
A Medallion Signature Guarantee may be obtained from a
domestic bank or trust company, broker, dealer, clearing agency, savings
association, or other financial institution which participates in a
Medallion program recognized by the Securities Transfer Association.
Signature guarantees from
financial institutions which do not participate in a Medallion program will not
be accepted. A notary public cannot provide Medallion Signature Guarantees.
Please
call the Transfer Agent at 1-800-442-3814 if you are unsure of any of the
special redemption requirements.
The
Transfer Agent may require other documentation from corporations, trustees,
executors and others who hold shares on behalf of someone else. If you have any
questions concerning the requirements, please call the Transfer Agent at
1‑800‑442‑3814. Redemptions will not be made until all of the conditions,
including the receipt in proper form of all required documentation by the
Transfer Agent, have been satisfied. A redemption of Fund shares may generate a
tax liability.
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For
Retail Shares, if the value of your investment in a Fund falls below $2,000
because of redemptions, the Funds may contact you about your balance. If it is
still below $2,000 after 60 days, the Funds may redeem the remainder of your
investment in the Fund and send you the proceeds. For Institutional Shares, if
the value of your investment in a Fund falls below $1,000,000 because of
redemptions, the Funds may contact you about your balance. If it remains below
$1,000,000 after 60 days, the Funds may convert your Institutional Shares into
Retail Shares. The Funds will notify you in writing that your investment will be
redeemed or converted in advance of taking such action so that you are informed
of the new status of your investment.
The
Funds may suspend the normal redemption process if trading on the Exchange is
suspended or if an emergency exists that reasonably precludes the valuation of
the Funds’ net assets or if the SEC permits a suspension.
Dividends and
Distributions
Each
Fund pays its shareholders dividends from its net investment income and
distributes any net realized capital gains at least once each year. Your
distributions will be reinvested in the Fund unless you instruct the Fund
otherwise. There are no charges on reinvestments. After every distribution, the
value of a share is automatically reduced by the amount of the distribution. If
you elect not to reinvest and the postal or other delivery service is unable to
deliver checks to your address of record, your distribution will be reinvested
in additional shares at the next NAV calculated after the check is returned to
the Fund. No interest will accrue on amounts represented by uncashed
distribution or redemption checks.
Potential
investors should read the “U.S. Federal Income Taxation” section on
pages 142-144 of this Prospectus and the “Taxation of the Funds” section on
pages 46-53 in the SAI for information on the tax treatment of distributions
from the Funds and for a discussion of the tax consequences of an investment in
the Funds. References below to the “Fund” apply to each of the Funds described
in this Prospectus.
Policies Regarding Frequent
Purchases and Redemptions of Fund Shares
The
Funds discourage any person who is not a long-term investor from investing in
the Funds. The Funds make investments for the long term and have had relatively
low turnover of the portfolios (please see the “Additional Investment
Strategies” section on pages 107-110 of this Prospectus and the “Principal
Investment Strategies of the Fund” sections of each summary section beginning on
page 4 of the Prospectus). The Board has adopted policies and procedures to
minimize frequent purchases and redemptions of Fund shares by shareholders. The
Board believes that frequent trading (which may include market timing,
short-term trading or excessive trading) of Fund shares has the potential to
adversely impact other shareholders of the Funds.
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The
Board believes that frequent trading of Fund shares causes risks to the Funds
and their shareholders. Frequent trading may dilute the value of Fund shares
held by long-term shareholders, trigger gains taxable to Fund shareholders,
increase brokerage and administrative costs and interfere with the efficient
management of the Funds. It may disrupt the Adviser’s ability to manage the
Funds in accordance with their goals. This disadvantages other shareholders of
the Funds and adds to Fund costs, since the Adviser may be required to sell
investments prematurely to raise cash to meet redemptions. The impact could be
particularly severe for a smaller Fund because the frequent activity would have
a greater impact on each remaining long-term shareholder. Shareholders could
also be negatively affected by frequent trading if the Adviser is forced to
rebalance the portfolio and thereby incur substantial expenses in doing
so.
Trades in and out of a Fund within 90 days or less may
be indicative of frequent trading. If the Adviser believes
that an investor is a frequent trader, the Adviser, in its sole discretion, may
temporarily or permanently bar that investor from trading in the Fund or any
Baron Funds®. Exchanges
between the Funds within 90 days or less will generally not be considered
frequent trading, unless the Adviser, in its sole discretion, determines that
such exchanges are excessive. Although the Adviser attempts to detect and deter
frequent trading, there can be no guarantee that all frequent, short-term or
other trading activity the Adviser may consider inappropriate will be detected.
For example, certain accounts, which are known as omnibus accounts, include
multiple investors and such accounts typically provide the Funds with a net
purchase or redemption order on any given day where purchasers of Fund shares
and redeemers of Fund shares are netted against one another and the identity of
individual purchasers and redeemers are not known by the Funds. By their nature,
omnibus accounts conceal from the Funds the identity of individual investors and
their transactions.
If
the Funds reasonably believe that certain financial intermediaries are not
enforcing the Funds’ policies regarding frequent purchases and redemptions of
Fund shares, the Funds may prohibit the financial intermediary from investing in
the Funds on behalf of any of its clients. However, certain financial
intermediaries and administrators may not have systems that can accommodate the
Funds’ policies regarding the frequent purchases and redemptions of Fund shares.
In these limited instances, the Funds must rely on those financial
intermediaries and administrators to enforce their own frequent trading
policies. If the Adviser reasonably believes that a financial intermediary is
not enforcing its own policy or the Funds’ policies regarding frequent purchases
and redemptions of Fund shares, even though it has the appropriate systems, the
Funds may prohibit that financial intermediary from investing in the Funds on
behalf of any of its clients.
The
Funds’ policies and procedures may be modified or terminated at any time. The
Funds reserve the right to reject any purchase or exchange request for any
reason. The Adviser, in its sole discretion, may waive its policies regarding
frequent purchases
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Baron Funds® |
and
redemptions of Fund shares for purchases, redemptions and exchanges that are
part of a rebalancing or asset allocation program administered by an approved
financial intermediary.
How to
Exchange Shares
You
may exchange all or a portion of your investment from one Baron Fund into
another. You may exchange shares by mail, telephone (speaking with a
representative or using our automated voice recognition system “BaronTel”) or
through the Baron Funds®
website. You must not have opted out of the telephone option to do an exchange
via telephone or online (please see the “Special Information about the Baron
Funds® Website” section
on pages 141-142 of this Prospectus). Any new account established through an
exchange will have the same registration, the same privileges and will be
subject to the same minimum investment requirements as your original account.
There is currently no fee for an exchange. Exchanges will be executed on the
basis of the relative net asset value of the shares exchanged. An exchange is
considered a sale for U.S. federal income tax purposes, and you may therefore
realize a gain or loss for U.S. federal income tax purposes as a result of an
exchange. The policy of the Funds is to presume that a person who trades in and
out of a Fund within 90 days or less is not a long-term investor (please see the
“Policies Regarding Frequent Purchases and Redemptions of Fund Shares” section
on pages 138-140 of this Prospectus). Exchanges between the Funds within 90 days
or less will generally not be considered frequent trading unless the Adviser, in
its sole discretion, determines that such exchanges are excessive. The Funds
reserve the right to cancel the exchange privilege of any investor who uses the
exchange privilege excessively. The Funds may change or temporarily suspend the
exchange privilege during unusual market conditions.
How to Convert Shares
The
Funds offer three classes of shares, Retail Shares, Institutional Shares and
R6 Shares, which differ only in their ongoing fees and eligibility
requirements. You may convert Retail Shares into Institutional Shares if the
value of your investment in a Fund is at least $1,000,000. If the value of your
investment in a Fund falls below $1,000,000, the Fund may convert your
Institutional Shares into Retail Shares. You may convert Retail Shares or
Institutional Shares into R6 Shares if you meet the eligibility requirements.
The transaction will be based on the respective NAV of each class to be
exchanged on the trade date for the conversion. For U.S. federal income tax
purposes, such a conversion is not a taxable event. You should consult your own
tax adviser regarding specific questions of federal, state, local or foreign tax
law.
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|
Baron Funds® |
Special
Information about the Baron Funds® Website
You
may visit us online at the Baron Funds® website at www.BaronFunds.com/myaccount to check
your Fund account balance and historical transactions, make purchases or
redemptions of Fund shares or exchanges into other Baron Funds®. Exchanges into other Baron
Funds on the Baron Funds website may only be made for Retail Shares. If you do
not already have a login ID and password, you may establish online transaction
privileges by enrolling on the website. You automatically have the ability to
establish these privileges, but you will be required to enter into a user’s
agreement through the website to enroll for the privileges. Transactions through
the website are subject to the same minimums as other transaction methods. To
purchase shares online, you must have ACH instructions on your account. Payment
for the purchase of Baron Fund shares through the website may be made only
through an ACH debit of your bank account held at a domestic financial
institution that is an ACH member.
For
Retail Shares, the Funds impose a limit of $6,500 per initial purchase
transaction or subsequent transaction through the website for retirement
accounts and a limit of $250,000 per initial purchase transaction or subsequent
transaction through the website for non‑retirement accounts. The minimum initial
investment for Retail Shares is $2,000 per Fund with subsequent minimum
investments through the website of $10. If you are utilizing the Baron Automatic
Investment Plan, you can start with an initial investment of $500 per Fund with
subsequent minimum investments of $50 per month. You may not make an initial
purchase of Institutional Shares of R6 Shares through the Baron Funds® website unless you are an
employee or Trustee of the Baron Funds®. For Institutional Shares
and R6 Shares, the Funds impose a limit of $6,500 for subsequent transactions
through the website for retirement accounts and a limit of $250,000 for
subsequent transactions through the website for non‑retirement accounts.
The
Funds limit the amount you may redeem through its website to $100,000 or less
per Fund per business day. Redemption proceeds may be sent by check or, if your
account has bank information, by wire or ACH. Redemptions will be paid by check
to the address of record if it has not changed in the last 30 days, and wire or
ACH transfer to the bank of record. The ability to redeem by Internet applies to
regular accounts (non-fiduciary) only.
Please
be aware that the Internet is an unsecured, unstable, unregulated and
unpredictable environment. Your ability to use the Baron Funds® website for transactions is
dependent on the Internet, equipment, software, systems, data and services
provided by various vendors and third parties. While the Funds, the Distributor,
the Transfer Agent and the Adviser have established certain security measures,
they cannot guarantee that inquiries, account information or trading activity
will be completely secure. There may also be delays, malfunctions or other
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Baron Funds® |
inconveniences,
or times when the website is not available for Fund transactions or other
purposes. If this occurs, you should consider using other methods to purchase,
redeem or exchange shares. The Funds, the Distributor, the Transfer Agent and
the Adviser are not liable for any delays, malfunctions or unauthorized
interception or access to communications or account information.
The
Funds, the Distributor, the Transfer Agent and the Adviser are not liable for
any loss, liability, cost or expense for following instructions communicated
through the Internet, including fraudulent or unauthorized instructions.
U.S. Federal
Income Taxation
Tax Status of the Fund
Each
Fund intends to qualify every year as a “regulated investment company” under the
Code. If a Fund qualifies as a regulated investment company, it generally will
not be subject to U.S. federal income tax on income that is distributed to
shareholders, provided that it distributes to its shareholders at least 90% of
its “investment company taxable income” (which includes, among other items,
dividends, interest, the excess of net short-term capital gains over net
long-term capital losses and other taxable income other than the excess of net
long-term capital gains over net short-term capital losses) and 90% of its net
tax-exempt interest income in each year.
Taxability of Dividends and Distributions
With
the exception of Baron Real Estate Income
Fund, which intends to pay dividends from its net investment income
quarterly, the Funds intend to pay dividends from their net investment income
and to distribute any net realized capital gains once each year. Distributions
of a Fund’s investment company taxable income (other than “qualified dividend
income”), including distributions of net short-term capital gains, will be
taxable to you as ordinary income. Distributions of a Fund’s net capital gains
(the excess of a Fund’s net long-term capital gain for the taxable year over its
net short-term capital loss for that year) reported as capital gain dividends by
a Fund will be taxable to you as long-term capital gains, regardless of the
length of time you have held shares of a Fund. Distributions in excess of a
Fund’s current and accumulated earnings and profits will be treated as a
tax-free return of capital, to the extent of your adjusted basis in your shares
of a Fund, and as a capital gain thereafter (if you held your shares of the
relevant Fund as capital assets). Provided that you satisfy the applicable
holding period and other requirements with respect to your shares of a Fund,
distributions of a Fund’s “qualified dividend income” will be treated as
“qualified dividend income” received by you and, if you are an individual or
other non-corporate shareholder, will therefore be subject to U.S. federal
income tax at the
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Baron Funds® |
rates
applicable to long-term capital gains. Your tax liabilities for such
distributions will depend on your particular tax situation.
Your
distributions will be reinvested in the Fund unless you instruct the Fund
otherwise. If your distributions are reinvested in additional shares of a Fund,
you will be treated for U.S. federal income tax purposes as receiving the
relevant distributions and using them to purchase shares. All distributions of
investment company taxable income and net capital gains, whether received in
cash or reinvested, must be reported on your U.S. federal income tax
return.
Annual
year-end distribution estimates, if any, are expected to be available beginning
in November or December of each year, and may be updated from time to time, on
the Baron Funds website at www.BaronFunds.com. A distribution will be treated as
paid during a calendar year if it is declared by the Fund in October, November
or December of the year to holders of record in such a month and paid by January
31 of the following year. Distributions paid in January will be taxable to you
as if received on December 31 of such prior year, rather than in the year in
which the distributions are actually received.
Dividends,
interest and other income or gains received by a Fund may give rise to
withholding and other taxes imposed by foreign countries. If a Fund meets
certain requirements and so elects, a ratable portion of the amounts withheld or
paid will generally be taxable to you as a shareholder even though you do not
receive them. In that case, you will generally be able to claim a tax credit or
a deduction for your portion of any foreign income taxes, including withholding
taxes, paid by a Fund, subject to generally applicable limitations.
A
Fund must withhold 24% of your dividends and redemption proceeds if you have not
provided a taxpayer identification number or social security number or if the
number you have provided is incorrect.
Distributions
from Baron Real Estate Fund and Baron Real Estate Income Fund may not be
included in your consolidated Form 1099-DIV that we send to you in January of
each year. A sizable portion of the dividends paid by U.S. REITs may represent a
return of capital. Consequently, a portion of the distributions of Baron Real Estate Fund and Baron Real Estate Income Fund may also
represent a return of capital. Return of capital distributions are not taxable
to you, but you must deduct them from the adjusted tax basis of your shares in
the Fund. Returns of capital are listed as “nontaxable distributions” on Form
1099-DIV. U.S. REITs typically have not indicated what proportion of their
dividends represent return of capital in time to allow the Fund to meet its
January 31 deadline for 1099-DIV reporting. Therefore, to ensure that you
receive accurate and complete tax information, we may need to send you a
separate 1099-DIV for this Fund in February (subject to approval by the
IRS).
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Baron Funds® |
Taxability of the Sale or Redemption of Shares
You
will recognize a taxable gain or loss, if any, if you sell or redeem your
shares. You will generally be subject to taxation based on the difference
between your adjusted tax basis in your shares that are sold or redeemed and the
value of the cash or other property you receive in payment therefor.
Any
gain or loss arising from the sale or redemption of shares will be treated as
capital gain or loss if the shares are capital assets in your hands and will
generally be long-term capital gain or loss if your holding period for your
shares is more than one year and short-term capital gain or loss if it is one
year or less. Currently, long-term capital gains recognized by individuals and
other non-corporate shareholders on a sale or redemption of shares generally are
taxed at a maximum rate of 20%. Any loss realized on a sale or redemption will
be disallowed to the extent the shares you dispose of are replaced (including
pursuant to our dividend reinvestment program) with substantially identical
shares within a period beginning 30 days before and ending 30 days after the
disposition of your shares. In such a case, your tax basis in the shares
acquired will be adjusted to reflect the disallowed loss. Any loss arising from
the sale or redemption of shares for which you have a holding period of six
months or less will be treated for U.S. federal tax purposes as a long-term
capital loss to the extent of any amount of capital gain dividends you received
with respect to such shares.
Tax Basis Information
A
Fund is required to report the adjusted tax basis and holding period of your
shares and your gain or loss to the Internal Revenue Service on your
Consolidated Form 1099 when “covered” shares of the Fund are redeemed. Covered
shares are any shares acquired (including shares acquired through reinvestment
of the Fund’s distributions) on or after January 1, 2012. Each of the Funds
has chosen the “average basis” method as its default method for reporting the
adjusted tax basis of covered shares. Each Fund will use this method for
purposes of reporting your adjusted tax basis unless you instruct the relevant
Fund in writing to use a different calculation method. You may choose a method
different from the Funds’ default method if you provide the Fund with timely
notice. Please consult your tax advisor with regard to your particular
circumstances.
The
foregoing is a summary of some of the important U.S. federal income tax
considerations affecting the Funds and their shareholders. It is not a complete
analysis of all relevant tax considerations, nor is it a complete listing of all
potential tax risks involved in purchasing or holding shares of the Funds. You
should consult your own tax adviser regarding specific questions of federal,
state, local or foreign tax law.
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Baron Funds® |
Distribution and
Servicing Arrangements
12b-1 Plan
The
Funds have adopted a distribution and servicing plan for Retail Shares (the
“12b‑1 Plan”) under Rule 12b-1 of the 1940 Act that allows the Funds to pay fees
for the distribution of Retail Shares and for shareholder services provided to
holders of Retail Shares. A substantial portion of the 12b-1 fees is directed to
third parties that provide shareholder servicing to existing shareholders. The
12b-1 Plan authorizes the Funds to pay BCI a distribution fee equal to
0.25% per annum of each Fund’s average daily net assets attributable to the
Retail Shares (please see the “12b-1 Plan” section on pages 38-39 of the
SAI). Due to the possible continuing nature of Rule 12b-1 payments,
long-term investors in Retail Shares may pay more than the economic equivalent
of the maximum front-end sales charge permitted by FINRA. The 12b-1 Plan does
not apply to Institutional Shares or R6 Shares.
Third Party Arrangements. In
addition to payments under the 12b-1 Plan, the Adviser, the Distributor or their
affiliates may, at their own expense out of their own financial resources, make
payments to some, but not all brokers, dealers or other financial
intermediaries, including retirement plan sponsors, service providers and
administrators providing recordkeeping, administrative and/or other services to
plan participants (collectively, “financial intermediaries”), as additional
compensation for services and/or as an incentive to sell both Retail and
Institutional Shares of the Funds and/or promote retention of their customers’
assets in the Funds. These payments, some of which may be referred to as
“revenue sharing” payments, do not change the price paid by investors to
purchase the Funds’ shares or the amount the Funds receive as proceeds from such
sales.
Payments
may be made to financial intermediaries that provide services to the Funds or to
shareholders of the Funds, including shareholder servicing, transaction
processing, sub-transfer agency services, sub-accounting services, marketing
support, conference support and/or access to sales meetings, sales
representatives and management representatives of the financial intermediary.
Payments may also be made to financial intermediaries for inclusion of the Funds
on a sales list, including a preferred or select sales list, in other sales
programs and platforms, or as an expense reimbursement in cases where the
financial intermediary provides shareholder services to Fund shareholders.
Payments may be structured: (i) as a percentage of net sales; (ii) as
a percentage of net customer assets; (iii) as a fixed dollar amount;
and/or (iv) on a per account basis. The amount of payments made to a
financial intermediary in any given year may vary based on the amount of Fund
assets attributable to that financial intermediary.
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Baron Funds® |
The
Funds may pay fees to financial intermediaries out of the applicable Fund’s
assets (in addition to 12b-1 fees for Retail Shares) for servicing shareholder
accounts. Such financial intermediaries typically would have omnibus accounts
with the Transfer Agent and provide shareholder servicing and/or sub-transfer
agent or sub-accounting services to shareholders or beneficial owners. It is
anticipated that any amounts paid by a Fund to such financial intermediaries
generally would not exceed the estimated amount the Fund would have incurred in
maintaining and servicing the shareholder accounts in the Fund directly rather
than through these financial intermediaries. As of December 31, 2022, the
Funds have made no such payments.
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Baron Funds® |
Financial Highlights
The
financial highlights table is intended to help you understand the Funds’
financial performance for the fiscal years indicated. Certain information
reflects financial results for a single Fund share. The “total return” shows how
much your investment in a Fund would have increased (or decreased) during each
period, assuming you had reinvested all dividends and distributions. These
financial highlights, for each of the fiscal years presented in the five year
period ended December 31, 2022 or the fiscal years of a Fund’s operations,
if less than five years, have been audited by PricewaterhouseCoopers LLP, the
Funds’ independent registered public accounting firm, whose report, along with
the Funds’ financial statements, is included in the Funds’ Annual Financial
Report, which is available upon request by calling 1‑800‑99BARON or by emailing
[email protected]. The Annual Financial Report is also incorporated by
reference in the SAI. The SAI and the Financial Report can be found at
www.BaronFunds.com.
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BARON PARTNERS FUND
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
RETAIL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
199.00 |
|
|
$ |
164.18 |
|
|
$ |
69.04 |
|
|
$ |
47.77 |
|
|
$ |
48.75 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(1.96 |
)(1) |
|
|
(1.98 |
)(1) |
|
|
(1.12 |
)(1) |
|
|
(0.75 |
)(1) |
|
|
(0.61 |
)(1) |
Net
realized and unrealized gain (loss) on investments |
|
|
(81.93 |
) |
|
|
52.16 |
|
|
|
102.29 |
|
|
|
22.20 |
|
|
|
(0.37 |
) |
Total
from investment operations |
|
|
(83.89 |
) |
|
|
50.18 |
|
|
|
101.17 |
|
|
|
21.45 |
|
|
|
(0.98 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(3.56 |
) |
|
|
(15.36 |
) |
|
|
(6.03 |
) |
|
|
(0.18 |
) |
|
|
0.00 |
|
Total
distributions |
|
|
(3.56 |
) |
|
|
(15.36 |
) |
|
|
(6.03 |
) |
|
|
(0.18 |
) |
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
111.55 |
|
|
$ |
199.00 |
|
|
$ |
164.18 |
|
|
$ |
69.04 |
|
|
$ |
47.77 |
|
TOTAL
RETURN |
|
|
(42.56 |
)% |
|
|
31.39 |
% |
|
|
148.56 |
% |
|
|
44.97 |
% |
|
|
(2.01 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
2,136.4 |
|
|
$ |
3,903.2 |
|
|
$ |
3,219.4 |
|
|
$ |
1,353.6 |
|
|
$ |
1,016.2 |
|
Ratio
of total expenses to average net assets |
|
|
1.69 |
% |
|
|
1.36 |
% |
|
|
1.56 |
% |
|
|
2.22 |
% |
|
|
2.03 |
% |
Less:
Ratio of interest expense to average net assets |
|
|
(0.39 |
)% |
|
|
(0.06 |
)% |
|
|
(0.25 |
)% |
|
|
(0.90 |
)% |
|
|
(0.71 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
1.30 |
% |
|
|
1.30 |
% |
|
|
1.31 |
% |
|
|
1.32 |
% |
|
|
1.32 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(1.29 |
)% |
|
|
(1.11 |
)% |
|
|
(1.18 |
)% |
|
|
(1.29 |
)% |
|
|
(1.13 |
)% |
Portfolio
turnover rate |
|
|
6.19 |
% |
|
|
9.14 |
% |
|
|
10.70 |
% |
|
|
7.97 |
% |
|
|
8.09 |
% |
(1) |
|
Based on average shares
outstanding. |
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| |
Information about your
Investment |
|
Baron Funds® |
BARON PARTNERS FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
205.95 |
|
|
$ |
169.04 |
|
|
$ |
70.82 |
|
|
$ |
48.86 |
|
|
$ |
49.73 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(1.63 |
)(1) |
|
|
(1.58 |
)(1) |
|
|
(0.92 |
)(1) |
|
|
(0.62 |
)(1) |
|
|
(0.49 |
)(1) |
Net
realized and unrealized gain (loss) on investments |
|
|
(84.91 |
) |
|
|
53.85 |
|
|
|
105.17 |
|
|
|
22.76 |
|
|
|
(0.38 |
) |
Total
from investment operations |
|
|
(86.54 |
) |
|
|
52.27 |
|
|
|
104.25 |
|
|
|
22.14 |
|
|
|
(0.87 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(3.56 |
) |
|
|
(15.36 |
) |
|
|
(6.03 |
) |
|
|
(0.18 |
) |
|
|
0.00 |
|
Total
distributions |
|
|
(3.56 |
) |
|
|
(15.36 |
) |
|
|
(6.03 |
) |
|
|
(0.18 |
) |
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
115.85 |
|
|
$ |
205.95 |
|
|
$ |
169.04 |
|
|
$ |
70.82 |
|
|
$ |
48.86 |
|
TOTAL
RETURN |
|
|
(42.41 |
)% |
|
|
31.73 |
% |
|
|
149.18 |
% |
|
|
45.38 |
% |
|
|
(1.75 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
2,329.7 |
|
|
$ |
4,126.7 |
|
|
$ |
3,191.4 |
|
|
$ |
1,187.0 |
|
|
$ |
815.6 |
|
Ratio
of total expenses to average net assets |
|
|
1.44 |
% |
|
|
1.11 |
% |
|
|
1.30 |
% |
|
|
1.96 |
% |
|
|
1.77 |
% |
Less:
Ratio of interest expense to average net assets |
|
|
(0.40 |
)% |
|
|
(0.06 |
)% |
|
|
(0.25 |
)% |
|
|
(0.90 |
)% |
|
|
(0.71 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
1.04 |
% |
|
|
1.05 |
% |
|
|
1.05 |
% |
|
|
1.06 |
% |
|
|
1.06 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(1.04 |
)% |
|
|
(0.86 |
)% |
|
|
(0.93 |
)% |
|
|
(1.03 |
)% |
|
|
(0.88 |
)% |
Portfolio
turnover rate |
|
|
6.19 |
% |
|
|
9.14 |
% |
|
|
10.70 |
% |
|
|
7.97 |
% |
|
|
8.09 |
% |
(1) |
|
Based on average shares
outstanding. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON PARTNERS FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
R6 SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
205.94 |
|
|
$ |
169.03 |
|
|
$ |
70.82 |
|
|
$ |
48.86 |
|
|
$ |
49.73 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(1.63 |
)(1) |
|
|
(1.58 |
)(1) |
|
|
(0.91 |
)(1) |
|
|
(0.62 |
)(1) |
|
|
(0.46 |
)(1) |
Net
realized and unrealized gain (loss) on investments |
|
|
(84.91 |
) |
|
|
53.85 |
|
|
|
105.15 |
|
|
|
22.76 |
|
|
|
(0.41 |
) |
Total
from investment operations |
|
|
(86.54 |
) |
|
|
52.27 |
|
|
|
104.24 |
|
|
|
22.14 |
|
|
|
(0.87 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(3.56 |
) |
|
|
(15.36 |
) |
|
|
(6.03 |
) |
|
|
(0.18 |
) |
|
|
0.00 |
|
Total
distributions |
|
|
(3.56 |
) |
|
|
(15.36 |
) |
|
|
(6.03 |
) |
|
|
(0.18 |
) |
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
115.84 |
|
|
$ |
205.94 |
|
|
$ |
169.03 |
|
|
$ |
70.82 |
|
|
$ |
48.86 |
|
TOTAL
RETURN |
|
|
(42.41 |
)% |
|
|
31.73 |
% |
|
|
149.16 |
% |
|
|
45.38 |
% |
|
|
(1.75 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
359.8 |
|
|
$ |
627.5 |
|
|
$ |
465.0 |
|
|
$ |
186.9 |
|
|
$ |
123.4 |
|
Ratio
of total expenses to average net assets |
|
|
1.44 |
% |
|
|
1.11 |
% |
|
|
1.30 |
% |
|
|
1.96 |
% |
|
|
1.79 |
% |
Less:
Ratio of interest expense to average net assets |
|
|
(0.40 |
)% |
|
|
(0.06 |
)% |
|
|
(0.25 |
)% |
|
|
(0.90 |
)% |
|
|
(0.73 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
1.04 |
% |
|
|
1.05 |
% |
|
|
1.05 |
% |
|
|
1.06 |
% |
|
|
1.06 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(1.04 |
)% |
|
|
(0.86 |
)% |
|
|
(0.93 |
)% |
|
|
(1.03 |
)% |
|
|
(0.82 |
)% |
Portfolio
turnover rate |
|
|
6.19 |
% |
|
|
9.14 |
% |
|
|
10.70 |
% |
|
|
7.97 |
% |
|
|
8.09 |
% |
(1) |
|
Based on average shares
outstanding. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON FOCUSED GROWTH FUND
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
RETAIL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
44.52 |
|
|
$ |
43.36 |
|
|
$ |
20.18 |
|
|
$ |
15.81 |
|
|
$ |
15.38 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.26 |
)(1) |
|
|
(0.51 |
)(1) |
|
|
(0.32 |
)(1) |
|
|
(0.12 |
)(1) |
|
|
(0.08 |
)(1) |
Net
realized and unrealized gain (loss) |
|
|
(12.14 |
) |
|
|
8.59 |
|
|
|
24.74 |
|
|
|
4.85 |
|
|
|
0.68 |
|
Total
from investment operations |
|
|
(12.40 |
) |
|
|
8.08 |
|
|
|
24.42 |
|
|
|
4.73 |
|
|
|
0.60 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(3.51 |
) |
|
|
(6.92 |
) |
|
|
(1.24 |
) |
|
|
(0.36 |
) |
|
|
(0.17 |
) |
Total
distributions |
|
|
(3.51 |
) |
|
|
(6.92 |
) |
|
|
(1.24 |
) |
|
|
(0.36 |
) |
|
|
(0.17 |
) |
Net
asset value, end of year |
|
$ |
28.61 |
|
|
$ |
44.52 |
|
|
$ |
43.36 |
|
|
$ |
20.18 |
|
|
$ |
15.18 |
|
TOTAL
RETURN |
|
|
(28.30 |
)% |
|
|
18.83 |
% |
|
|
122.21 |
% |
|
|
30.03 |
%(3) |
|
|
3.75 |
%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
174.3 |
|
|
$ |
209.8 |
|
|
$ |
157.7 |
|
|
$ |
49.1 |
|
|
$ |
40.9 |
|
Ratio
of operating expenses to average net assets |
|
|
1.32 |
% |
|
|
1.32 |
%(2) |
|
|
1.35 |
% |
|
|
1.39 |
%(2) |
|
|
1.39 |
%(2) |
Less:
Reimbursement of expenses by Adviser |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
(0.04 |
)% |
|
|
(0.04 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
1.32 |
% |
|
|
1.32 |
% |
|
|
1.35 |
% |
|
|
1.35 |
% |
|
|
1.35 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.74 |
)% |
|
|
(1.12 |
)% |
|
|
(1.15 |
)% |
|
|
(0.67 |
)% |
|
|
(0.49 |
)% |
Portfolio
turnover rate |
|
|
22.34 |
% |
|
|
45.28 |
% |
|
|
18.09 |
% |
|
|
4.53 |
% |
|
|
1.85 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
Interest expense rounds
to less than 0.01%. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON FOCUSED GROWTH FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
46.09 |
|
|
$ |
44.56 |
|
|
$ |
20.67 |
|
|
$ |
16.15 |
|
|
$ |
15.66 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.16 |
)(1) |
|
|
(0.40 |
)(1) |
|
|
(0.24 |
)(1) |
|
|
(0.08 |
)(1) |
|
|
(0.05 |
)(1) |
Net
realized and unrealized gain (loss) |
|
|
(12.60 |
) |
|
|
8.85 |
|
|
|
25.37 |
|
|
|
4.96 |
|
|
|
0.71 |
|
Total
from investment operations |
|
|
(12.76 |
) |
|
|
8.45 |
|
|
|
25.13 |
|
|
|
4.88 |
|
|
|
0.66 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(3.51 |
) |
|
|
(6.92 |
) |
|
|
(1.24 |
) |
|
|
(0.36 |
) |
|
|
(0.17 |
) |
Total
distributions |
|
|
(3.51 |
) |
|
|
(6.92 |
) |
|
|
(1.24 |
) |
|
|
(0.36 |
) |
|
|
(0.17 |
) |
Net
asset value, end of year |
|
$ |
29.82 |
|
|
$ |
46.09 |
|
|
$ |
44.56 |
|
|
$ |
20.67 |
|
|
$ |
16.15 |
|
TOTAL
RETURN |
|
|
(28.11 |
)% |
|
|
19.16 |
% |
|
|
122.75 |
% |
|
|
30.33 |
%(3) |
|
|
4.07 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
300.3 |
|
|
$ |
307.8 |
|
|
$ |
233.7 |
|
|
$ |
91.3 |
|
|
$ |
70.7 |
|
Ratio
of operating expenses to average net assets |
|
|
1.06 |
% |
|
|
1.05 |
%(2) |
|
|
1.07 |
% |
|
|
1.11 |
%(2) |
|
|
1.09 |
%(2) |
Less:
Reimbursement of expenses by Adviser |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
(0.01 |
)% |
|
|
0.00 |
% |
Ratio
of net operating expenses to average net assets |
|
|
1.06 |
% |
|
|
1.05 |
% |
|
|
1.07 |
% |
|
|
1.10 |
% |
|
|
1.09 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.45 |
)% |
|
|
(0.85 |
)% |
|
|
(0.88 |
)% |
|
|
(0.42 |
)% |
|
|
(0.30 |
)% |
Portfolio
turnover rate |
|
|
22.34 |
% |
|
|
45.28 |
% |
|
|
18.09 |
% |
|
|
4.53 |
% |
|
|
1.85 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
Interest expense rounds
to less than 0.01%. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON FOCUSED GROWTH FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
R6 SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
46.12 |
|
|
$ |
44.59 |
|
|
$ |
20.68 |
|
|
$ |
16.16 |
|
|
$ |
15.67 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.17 |
)(1) |
|
|
(0.40 |
)(1) |
|
|
(0.24 |
)(1) |
|
|
(0.07 |
)(1) |
|
|
(0.03 |
)(1) |
Net
realized and unrealized gain (loss) |
|
|
(12.60 |
) |
|
|
8.85 |
|
|
|
25.39 |
|
|
|
4.95 |
|
|
|
0.69 |
|
Total
from investment operations |
|
|
(12.77 |
) |
|
|
8.45 |
|
|
|
25.15 |
|
|
|
4.88 |
|
|
|
0.66 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(3.51 |
) |
|
|
(6.92 |
) |
|
|
(1.24 |
) |
|
|
(0.36 |
) |
|
|
(0.17 |
) |
Total
distributions |
|
|
(3.51 |
) |
|
|
(6.92 |
) |
|
|
(1.24 |
) |
|
|
(0.36 |
) |
|
|
(0.17 |
) |
Net
asset value, end of year |
|
$ |
29.84 |
|
|
$ |
46.12 |
|
|
$ |
44.59 |
|
|
$ |
20.68 |
|
|
$ |
16.16 |
|
TOTAL
RETURN |
|
|
(28.11 |
)% |
|
|
19.15 |
% |
|
|
122.78 |
% |
|
|
30.31 |
% |
|
|
4.07 |
%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
252.9 |
|
|
$ |
320.6 |
|
|
$ |
271.3 |
|
|
$ |
122.0 |
|
|
$ |
92.2 |
|
Ratio
of operating expenses to average net assets |
|
|
1.05 |
% |
|
|
1.05 |
%(2) |
|
|
1.07 |
% |
|
|
1.10 |
%(2) |
|
|
1.10 |
%(2) |
Less:
Reimbursement of expenses by Adviser |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
(0.00 |
)%(4) |
Ratio
of net operating expenses to average net assets |
|
|
1.05 |
% |
|
|
1.05 |
% |
|
|
1.07 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.48 |
)% |
|
|
(0.86 |
)% |
|
|
(0.87 |
)% |
|
|
(0.40 |
)% |
|
|
(0.18 |
)% |
Portfolio
turnover rate |
|
|
22.34 |
% |
|
|
45.28 |
% |
|
|
18.09 |
% |
|
|
4.53 |
% |
|
|
1.85 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
Interest expense rounds
to less than 0.01%. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON INTERNATIONAL
GROWTH FUND
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
RETAIL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
33.29 |
|
|
$ |
31.97 |
|
|
$ |
24.50 |
|
|
$ |
19.00 |
|
|
$ |
23.90 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
|
|
| |
Net
investment income (loss) |
|
|
0.02 |
(1) |
|
|
(0.11 |
)(1) |
|
|
(0.01 |
)(1) |
|
|
0.01 |
(1) |
|
|
(0.01 |
)(1) |
Net
realized and unrealized gain (loss) |
|
|
(9.21 |
) |
|
|
3.18 |
|
|
|
7.49 |
|
|
|
5.51 |
|
|
|
(4.21 |
) |
Total
from investment operations |
|
|
(9.19 |
) |
|
|
3.07 |
|
|
|
7.48 |
|
|
|
5.52 |
|
|
|
(4.22 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
| |
Net
investment income |
|
|
0.00 |
|
|
|
(0.63 |
) |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(0.30 |
) |
|
|
(1.12 |
) |
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
(0.68 |
) |
Total
distributions |
|
|
(0.30 |
) |
|
|
(1.75 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.68 |
) |
Net
asset value, end of year |
|
$ |
23.80 |
|
|
$ |
33.29 |
|
|
$ |
31.97 |
|
|
$ |
24.50 |
|
|
$ |
19.00 |
|
TOTAL
RETURN |
|
|
(27.47 |
)%(2) |
|
|
9.64 |
%(2) |
|
|
30.52 |
%(2) |
|
|
29.06 |
%(2) |
|
|
(17.90 |
)%(2) |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets (in millions), end of year |
|
$ |
66.8 |
|
|
$ |
100.2 |
|
|
$ |
85.5 |
|
|
$ |
82.0 |
|
|
$ |
59.8 |
|
Ratio
of operating expenses to average net assets |
|
|
1.26 |
% |
|
|
1.23 |
% |
|
|
1.28 |
% |
|
|
1.31 |
% |
|
|
1.34 |
%(3) |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.06 |
)% |
|
|
(0.03 |
)% |
|
|
(0.08 |
)% |
|
|
(0.11 |
)% |
|
|
(0.14 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
1.20 |
% |
|
|
1.20 |
% |
|
|
1.20 |
% |
|
|
1.20 |
% |
|
|
1.20 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
0.06 |
% |
|
|
(0.33 |
)% |
|
|
(0.05 |
)% |
|
|
0.06 |
% |
|
|
(0.03 |
)% |
Portfolio
turnover rate |
|
|
47.04 |
% |
|
|
36.00 |
% |
|
|
41.13 |
% |
|
|
56.52 |
% |
|
|
50.83 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
(3) |
|
Interest expense rounds
to less than 0.01%. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON INTERNATIONAL
GROWTH FUND (CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
33.88 |
|
|
$ |
32.51 |
|
|
$ |
24.88 |
|
|
$ |
19.29 |
|
|
$ |
24.19 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
|
|
| |
Net
investment income (loss) |
|
|
0.08 |
(1) |
|
|
(0.02 |
)(1) |
|
|
0.06 |
(1) |
|
|
0.06 |
(1) |
|
|
0.06 |
(1) |
Net
realized and unrealized gain (loss) |
|
|
(9.37 |
) |
|
|
3.22 |
|
|
|
7.61 |
|
|
|
5.61 |
|
|
|
(4.28 |
) |
Total
from investment operations |
|
|
(9.29 |
) |
|
|
3.20 |
|
|
|
7.67 |
|
|
|
5.67 |
|
|
|
(4.22 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
| |
Net
investment income |
|
|
0.00 |
|
|
|
(0.71 |
) |
|
|
(0.04 |
) |
|
|
(0.07 |
) |
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(0.30 |
) |
|
|
(1.12 |
) |
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
(0.68 |
) |
Total
distributions |
|
|
(0.30 |
) |
|
|
(1.83 |
) |
|
|
(0.04 |
) |
|
|
(0.08 |
) |
|
|
(0.68 |
) |
Net
asset value, end of year |
|
$ |
24.29 |
|
|
$ |
33.88 |
|
|
$ |
32.51 |
|
|
$ |
24.88 |
|
|
$ |
19.29 |
|
TOTAL
RETURN |
|
|
(27.29 |
)%(2) |
|
|
9.88 |
%(2) |
|
|
30.83 |
%(2) |
|
|
29.39 |
%(2) |
|
|
(17.68 |
)%(2) |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets (in millions), end of year |
|
$ |
303.7 |
|
|
$ |
497.2 |
|
|
$ |
362.9 |
|
|
$ |
223.6 |
|
|
$ |
154.2 |
|
Ratio
of operating expenses to average net assets |
|
|
0.99 |
% |
|
|
0.96 |
% |
|
|
1.01 |
% |
|
|
1.04 |
% |
|
|
1.07 |
%(3) |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.04 |
)% |
|
|
(0.01 |
)% |
|
|
(0.06 |
)% |
|
|
(0.09 |
)% |
|
|
(0.12 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
0.95 |
% |
|
|
0.95 |
% |
|
|
0.95 |
% |
|
|
0.95 |
% |
|
|
0.95 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
0.30 |
% |
|
|
(0.05 |
)% |
|
|
0.25 |
% |
|
|
0.27 |
% |
|
|
0.26 |
% |
Portfolio
turnover rate |
|
|
47.04 |
% |
|
|
36.00 |
% |
|
|
41.13 |
% |
|
|
56.52 |
% |
|
|
50.83 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
(3) |
|
Interest expense rounds
to less than 0.01%. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON INTERNATIONAL
GROWTH FUND (CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
R6 SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
33.86 |
|
|
$ |
32.49 |
|
|
$ |
24.88 |
|
|
$ |
19.29 |
|
|
$ |
24.19 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
|
|
| |
Net
investment income (loss) |
|
|
0.08 |
(1) |
|
|
(0.03 |
)(1) |
|
|
0.04 |
(1) |
|
|
0.06 |
(1) |
|
|
0.07 |
(1) |
Net
realized and unrealized gain (loss) |
|
|
(9.36 |
) |
|
|
3.23 |
|
|
|
7.61 |
|
|
|
5.61 |
|
|
|
(4.29 |
) |
Total
from investment operations |
|
|
(9.28 |
) |
|
|
3.20 |
|
|
|
7.65 |
|
|
|
5.67 |
|
|
|
(4.22 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
| |
Net
investment income |
|
|
0.00 |
|
|
|
(0.71 |
) |
|
|
(0.04 |
) |
|
|
(0.07 |
) |
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(0.30 |
) |
|
|
(1.12 |
) |
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
(0.68 |
) |
Total
distributions |
|
|
(0.30 |
) |
|
|
(1.83 |
) |
|
|
(0.04 |
) |
|
|
(0.08 |
) |
|
|
(0.68 |
) |
Net
asset value, end of year |
|
$ |
24.28 |
|
|
$ |
33.86 |
|
|
$ |
32.49 |
|
|
$ |
24.88 |
|
|
$ |
19.29 |
|
TOTAL
RETURN |
|
|
(27.28 |
)%(2) |
|
|
9.89 |
%(2) |
|
|
30.75 |
%(2) |
|
|
29.39 |
%(2) |
|
|
(17.68 |
)%(2) |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets (in millions), end of year |
|
$ |
112.2 |
|
|
$ |
160.3 |
|
|
$ |
163.5 |
|
|
$ |
17.7 |
|
|
$ |
12.4 |
|
Ratio
of operating expenses to average net assets |
|
|
0.99 |
% |
|
|
0.96 |
% |
|
|
0.98 |
% |
|
|
1.03 |
% |
|
|
1.06 |
%(3) |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.04 |
)% |
|
|
(0.01 |
)% |
|
|
(0.03 |
)% |
|
|
(0.08 |
)% |
|
|
(0.11 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
0.95 |
% |
|
|
0.95 |
% |
|
|
0.95 |
% |
|
|
0.95 |
% |
|
|
0.95 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
0.31 |
% |
|
|
(0.10 |
)% |
|
|
0.15 |
% |
|
|
0.28 |
% |
|
|
0.31 |
% |
Portfolio
turnover rate |
|
|
47.04 |
% |
|
|
36.00 |
% |
|
|
41.13 |
% |
|
|
56.52 |
% |
|
|
50.83 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
(3) |
|
Interest expense rounds
to less than 0.01%. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON REAL ESTATE FUND
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
RETAIL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
40.24 |
|
|
$ |
35.21 |
|
|
$ |
26.18 |
|
|
$ |
20.77 |
|
|
$ |
29.58 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
0.00 |
(1)(2) |
|
|
(0.10 |
)(1) |
|
|
(0.10 |
)(1) |
|
|
(0.03 |
)(1) |
|
|
(0.03 |
)(1) |
Net
realized and unrealized gain (loss) |
|
|
(11.56 |
) |
|
|
8.42 |
|
|
|
11.34 |
|
|
|
9.08 |
|
|
|
(6.28 |
) |
Total
from investment operations |
|
|
(11.56 |
) |
|
|
8.32 |
|
|
|
11.24 |
|
|
|
9.05 |
|
|
|
(6.31 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
(0.02 |
) |
|
|
0.00 |
|
|
|
(0.00 |
)(2) |
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(0.80 |
) |
|
|
(3.29 |
) |
|
|
(2.21 |
) |
|
|
(3.64 |
) |
|
|
(2.50 |
) |
Total
distributions |
|
|
(0.82 |
) |
|
|
(3.29 |
) |
|
|
(2.21 |
) |
|
|
(3.64 |
) |
|
|
(2.50 |
) |
Net
asset value, end of year |
|
$ |
27.86 |
|
|
$ |
40.24 |
|
|
$ |
35.21 |
|
|
$ |
26.18 |
|
|
$ |
20.77 |
|
TOTAL
RETURN |
|
|
(28.61 |
)% |
|
|
24.03 |
% |
|
|
43.85 |
% |
|
|
44.11 |
% |
|
|
(22.22 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
| |
|
|
| |
|
| |
Net
assets (in millions), end of year |
|
$ |
322.0 |
|
|
$ |
514.8 |
|
|
$ |
321.8 |
|
|
$ |
246.9 |
|
|
$ |
213.0 |
|
Ratio
of operating expenses to average net assets |
|
|
1.33 |
% |
|
|
1.31 |
% |
|
|
1.34 |
% |
|
|
1.33 |
%(4) |
|
|
1.32 |
%(4) |
Ratio
of net investment income (loss) to average net assets |
|
|
0.00 |
%(3) |
|
|
(0.26 |
)% |
|
|
(0.36 |
)% |
|
|
(0.10 |
)% |
|
|
(0.10 |
)% |
Portfolio
turnover rate |
|
|
112.74 |
% |
|
|
64.39 |
% |
|
|
71.46 |
% |
|
|
53.44 |
% |
|
|
56.47 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
Less than $0.01 per
share. |
(4) |
|
Interest expense rounds
to less than 0.01%. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON REAL ESTATE FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
41.36 |
|
|
$ |
36.02 |
|
|
$ |
26.68 |
|
|
$ |
21.10 |
|
|
$ |
30.01 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
|
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.08 |
(1) |
|
|
0.01 |
(1) |
|
|
(0.03 |
)(1) |
|
|
0.04 |
(1) |
|
|
0.05 |
(1) |
Net
realized and unrealized gain (loss) |
|
|
(11.89 |
) |
|
|
8.62 |
|
|
|
11.60 |
|
|
|
9.22 |
|
|
|
(6.39 |
) |
Total
from investment operations |
|
|
(11.81 |
) |
|
|
8.63 |
|
|
|
11.57 |
|
|
|
9.26 |
|
|
|
(6.34 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
(0.02 |
) |
|
|
0.00 |
|
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
(0.07 |
) |
Net
realized gain on investments |
|
|
(0.80 |
) |
|
|
(3.29 |
) |
|
|
(2.21 |
) |
|
|
(3.64 |
) |
|
|
(2.50 |
) |
Total
distributions |
|
|
(0.82 |
) |
|
|
(3.29 |
) |
|
|
(2.23 |
) |
|
|
(3.68 |
) |
|
|
(2.57 |
) |
Net
asset value, end of year |
|
$ |
28.73 |
|
|
$ |
41.36 |
|
|
$ |
36.02 |
|
|
$ |
26.68 |
|
|
$ |
21.10 |
|
TOTAL
RETURN |
|
|
(28.44 |
)% |
|
|
24.36 |
% |
|
|
44.28 |
% |
|
|
44.44 |
% |
|
|
(22.04 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets (in millions), end of year |
|
$ |
928.7 |
|
|
$ |
1,490.8 |
|
|
$ |
705.4 |
|
|
$ |
360.2 |
|
|
$ |
320.9 |
|
Ratio
of operating expenses to average net assets |
|
|
1.07 |
% |
|
|
1.05 |
% |
|
|
1.08 |
% |
|
|
1.08 |
%(2) |
|
|
1.06 |
%(2) |
Ratio
of net investment income (loss) to average net assets |
|
|
0.25 |
% |
|
|
0.04 |
% |
|
|
(0.10 |
)% |
|
|
0.15 |
% |
|
|
0.17 |
% |
Portfolio
turnover rate |
|
|
112.74 |
% |
|
|
64.39 |
% |
|
|
71.46 |
% |
|
|
53.44 |
% |
|
|
56.47 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
Interest expense rounds
to less than 0.01%. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON REAL ESTATE FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
R6 SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
41.36 |
|
|
$ |
36.02 |
|
|
$ |
26.69 |
|
|
$ |
21.10 |
|
|
$ |
30.01 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
|
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.09 |
(1) |
|
|
0.01 |
(1) |
|
|
(0.03 |
)(1) |
|
|
0.04 |
(1) |
|
|
0.09 |
(1) |
Net
realized and unrealized gain (loss) |
|
|
(11.90 |
) |
|
|
8.62 |
|
|
|
11.59 |
|
|
|
9.23 |
|
|
|
(6.43 |
) |
Total
from investment operations |
|
|
(11.81 |
) |
|
|
8.63 |
|
|
|
11.56 |
|
|
|
9.27 |
|
|
|
(6.34 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
|
| |
|
| |
Net
investment income |
|
|
(0.02 |
) |
|
|
0.00 |
|
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
(0.07 |
) |
Net
realized gain on investments |
|
|
(0.80 |
) |
|
|
(3.29 |
) |
|
|
(2.21 |
) |
|
|
(3.64 |
) |
|
|
(2.50 |
) |
Total
distributions |
|
|
(0.82 |
) |
|
|
(3.29 |
) |
|
|
(2.23 |
) |
|
|
(3.68 |
) |
|
|
(2.57 |
) |
Net
asset value, end of year |
|
$ |
28.73 |
|
|
$ |
41.36 |
|
|
$ |
36.02 |
|
|
$ |
26.69 |
|
|
$ |
21.10 |
|
TOTAL
RETURN |
|
|
(28.44 |
)% |
|
|
24.36 |
% |
|
|
44.23 |
% |
|
|
44.51 |
% |
|
|
(22.03 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets (in millions), end of year |
|
$ |
25.7 |
|
|
$ |
33.3 |
|
|
$ |
20.0 |
|
|
$ |
13.2 |
|
|
$ |
9.3 |
|
Ratio
of operating expenses to average net assets |
|
|
1.07 |
% |
|
|
1.05 |
% |
|
|
1.07 |
% |
|
|
1.07 |
%(2) |
|
|
1.07 |
%(2) |
Ratio
of net investment income (loss) to average net assets |
|
|
0.29 |
% |
|
|
0.02 |
% |
|
|
(0.10 |
)% |
|
|
0.17 |
% |
|
|
0.31 |
% |
Portfolio
turnover rate |
|
|
112.74 |
% |
|
|
64.39 |
% |
|
|
71.46 |
% |
|
|
53.44 |
% |
|
|
56.47 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
Interest expense rounds
to less than 0.01%. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON EMERGING MARKETS
FUND
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
RETAIL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
17.51 |
|
|
$ |
18.97 |
|
|
$ |
14.72 |
|
|
$ |
12.45 |
|
|
$ |
15.33 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
|
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.01 |
)(1) |
|
|
(0.09 |
)(1) |
|
|
(0.06 |
)(1) |
|
|
0.03 |
(1) |
|
|
0.05 |
(1) |
Net
realized and unrealized gain (loss) |
|
|
(4.54 |
) |
|
|
(1.09 |
) |
|
|
4.31 |
|
|
|
2.27 |
|
|
|
(2.91 |
) |
Total
from investment operations |
|
|
(4.55 |
) |
|
|
(1.18 |
) |
|
|
4.25 |
|
|
|
2.30 |
|
|
|
(2.86 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
|
| |
|
| |
Net
investment income |
|
|
0.00 |
|
|
|
(0.28 |
) |
|
|
0.00 |
|
|
|
(0.03 |
) |
|
|
(0.02 |
) |
Net
realized gain on investments |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Return
of capital |
|
|
0.00 |
|
|
|
(0.00 |
)(2) |
|
|
0.00 |
|
|
|
(0.00 |
)(2) |
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
(0.28 |
) |
|
|
0.00 |
|
|
|
(0.03 |
) |
|
|
(0.02 |
) |
Net
asset value, end of year |
|
$ |
12.96 |
|
|
$ |
17.51 |
|
|
$ |
18.97 |
|
|
$ |
14.72 |
|
|
$ |
12.45 |
|
TOTAL
RETURN |
|
|
(25.99 |
)% |
|
|
(6.26 |
)% |
|
|
28.87 |
% |
|
|
18.48 |
% |
|
|
(18.67 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets (in millions), end of year |
|
$ |
283.7 |
|
|
$ |
462.6 |
|
|
$ |
507.7 |
|
|
$ |
667.1 |
|
|
$ |
753.5 |
|
Ratio
of operating expenses to average net assets |
|
|
1.38 |
% |
|
|
1.33 |
% |
|
|
1.35 |
% |
|
|
1.35 |
% |
|
|
1.36 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.07 |
)% |
|
|
(0.46 |
)% |
|
|
(0.44 |
)% |
|
|
0.23 |
% |
|
|
0.36 |
% |
Portfolio
turnover rate |
|
|
43.74 |
% |
|
|
33.10 |
% |
|
|
55.65 |
% |
|
|
59.00 |
% |
|
|
43.27 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
Less than $0.01 per
share. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON EMERGING MARKETS
FUND (CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
17.58 |
|
|
$ |
19.06 |
|
|
$ |
14.75 |
|
|
$ |
12.47 |
|
|
$ |
15.37 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
|
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.03 |
(1) |
|
|
(0.04 |
)(1) |
|
|
(0.03 |
)(1) |
|
|
0.07 |
(1) |
|
|
0.09 |
(1) |
Net
realized and unrealized gain (loss) |
|
|
(4.57 |
) |
|
|
(1.11 |
) |
|
|
4.34 |
|
|
|
2.28 |
|
|
|
(2.93 |
) |
Total
from investment operations |
|
|
(4.54 |
) |
|
|
(1.15 |
) |
|
|
4.31 |
|
|
|
2.35 |
|
|
|
(2.84 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
|
| |
|
| |
Net
investment income |
|
|
0.00 |
|
|
|
(0.33 |
) |
|
|
0.00 |
|
|
|
(0.06 |
) |
|
|
(0.06 |
) |
Net
realized gain on investments |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Return
of capital |
|
|
0.00 |
|
|
|
(0.00 |
)(2) |
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
(0.33 |
) |
|
|
0.00 |
|
|
|
(0.07 |
) |
|
|
(0.06 |
) |
Net
asset value, end of year |
|
$ |
13.04 |
|
|
$ |
17.58 |
|
|
$ |
19.06 |
|
|
$ |
14.75 |
|
|
$ |
12.47 |
|
TOTAL
RETURN |
|
|
(25.82 |
)% |
|
|
(6.07 |
)% |
|
|
29.22 |
% |
|
|
18.86 |
% |
|
|
(18.49 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
assets (in millions), end of year |
|
$ |
4,473.6 |
|
|
$ |
8,408.8 |
|
|
$ |
6,228.8 |
|
|
$ |
4,644.8 |
|
|
$ |
3,850.0 |
|
Ratio
of operating expenses to average net assets |
|
|
1.12 |
% |
|
|
1.08 |
% |
|
|
1.09 |
% |
|
|
1.09 |
% |
|
|
1.10 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
0.20 |
% |
|
|
(0.22 |
)% |
|
|
(0.20 |
)% |
|
|
0.50 |
% |
|
|
0.62 |
% |
Portfolio
turnover rate |
|
|
43.74 |
% |
|
|
33.10 |
% |
|
|
55.65 |
% |
|
|
59.00 |
% |
|
|
43.27 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
Less than $0.01 per
share. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON EMERGING MARKETS
FUND (CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
R6 SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of year |
|
$ |
17.59 |
|
|
$ |
19.07 |
|
|
$ |
14.75 |
|
|
$ |
12.48 |
|
|
$ |
15.38 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
0.03 |
(1) |
|
|
(0.04 |
)(1) |
|
|
(0.03 |
)(1) |
|
|
0.07 |
(1) |
|
|
0.10 |
(1) |
Net
realized and unrealized gain (loss) |
|
|
(4.57 |
) |
|
|
(1.11 |
) |
|
|
4.35 |
|
|
|
2.27 |
|
|
|
(2.94 |
) |
Total
from investment operations |
|
|
(4.54 |
) |
|
|
(1.15 |
) |
|
|
4.32 |
|
|
|
2.34 |
|
|
|
(2.84 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
(0.33 |
) |
|
|
0.00 |
|
|
|
(0.06 |
) |
|
|
(0.06 |
) |
Net
realized gain on investments |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Return
of capital |
|
|
0.00 |
|
|
|
(0.00 |
)(2) |
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
(0.33 |
) |
|
|
0.00 |
|
|
|
(0.07 |
) |
|
|
(0.06 |
) |
Net
asset value, end of year |
|
$ |
13.05 |
|
|
$ |
17.59 |
|
|
$ |
19.07 |
|
|
$ |
14.75 |
|
|
$ |
12.48 |
|
TOTAL
RETURN |
|
|
(25.81 |
)% |
|
|
(6.07 |
)% |
|
|
29.29 |
% |
|
|
18.77 |
% |
|
|
(18.47 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
10.4 |
|
|
$ |
17.4 |
|
|
$ |
13.9 |
|
|
$ |
10.1 |
|
|
$ |
7.3 |
|
Ratio
of operating expenses to average net assets |
|
|
1.13 |
% |
|
|
1.08 |
% |
|
|
1.09 |
% |
|
|
1.09 |
% |
|
|
1.11 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
0.20 |
% |
|
|
(0.21 |
)% |
|
|
(0.18 |
)% |
|
|
0.49 |
% |
|
|
0.69 |
% |
Portfolio
turnover rate |
|
|
43.74 |
% |
|
|
33.10 |
% |
|
|
55.65 |
% |
|
|
59.00 |
% |
|
|
43.27 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
Less than $0.01 per
share. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON GLOBAL ADVANTAGE
FUND
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
RETAIL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of period |
|
$ |
51.65 |
|
|
$ |
51.34 |
|
|
$ |
28.68 |
|
|
$ |
19.77 |
|
|
$ |
20.56 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.37 |
)(1) |
|
|
(0.62 |
)(1) |
|
|
(0.44 |
)(1) |
|
|
(0.02 |
)(1) |
|
|
(0.21 |
)(1) |
Net
realized and unrealized gain (loss) |
|
|
(26.27 |
) |
|
|
0.93 |
|
|
|
23.10 |
|
|
|
8.93 |
|
|
|
(0.58 |
) |
Total
from investment operations |
|
|
(26.64 |
) |
|
|
0.31 |
|
|
|
22.66 |
|
|
|
8.91 |
|
|
|
(0.79 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(0.50 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
(0.50 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
24.51 |
|
|
$ |
51.65 |
|
|
$ |
51.34 |
|
|
$ |
28.68 |
|
|
$ |
19.77 |
|
TOTAL
RETURN |
|
|
(51.69 |
)%(2)(5) |
|
|
0.60 |
%(2)(4) |
|
|
79.01 |
%(2) |
|
|
45.07 |
%(2) |
|
|
(3.84 |
)%(2) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
223.3 |
|
|
$ |
786.3 |
|
|
$ |
921.7 |
|
|
$ |
174.6 |
|
|
$ |
35.7 |
|
Ratio
of total expenses to average net assets |
|
|
1.20 |
% |
|
|
1.15 |
% |
|
|
1.17 |
% |
|
|
1.25 |
% |
|
|
1.45 |
% |
Less:
Ratio of interest expense to average net assets |
|
|
(0.01 |
)% |
|
|
(0.00 |
)%(3) |
|
|
0.00 |
% |
|
|
(0.00 |
)%(3) |
|
|
(0.00 |
)%(3) |
Ratio
of operating expenses to average net assets |
|
|
1.19 |
% |
|
|
1.15 |
% |
|
|
1.17 |
% |
|
|
1.25 |
% |
|
|
1.45 |
% |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.04 |
)% |
|
|
(0.00 |
)%(6) |
|
|
(0.02 |
)% |
|
|
(0.10 |
)% |
|
|
(0.30 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
1.15 |
% |
|
|
1.15 |
% |
|
|
1.15 |
% |
|
|
1.15 |
% |
|
|
1.15 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(1.14 |
)% |
|
|
(1.14 |
)% |
|
|
(1.10 |
)% |
|
|
(0.08 |
)% |
|
|
(0.94 |
)% |
Portfolio
turnover rate |
|
|
11.50 |
% |
|
|
23.73 |
% |
|
|
8.75 |
% |
|
|
19.44 |
% |
|
|
19.77 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
(3) |
|
Interest expense rounds
to less than 0.01%. |
(4) |
|
The Adviser made
voluntary payments to the Fund in the amount of $162,538 to compensate the
Fund for losses incurred due to valuation errors. The impact of these
payments increased the Fund’s total return by less than
0.01%. |
(5) |
|
The Adviser made a
voluntary payment to the Fund in the amount of $82,890 to compensate the
Fund for a loss incurred due to a valuation error. The impact of this
payment increased the Fund’s total return by less than
0.01%. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON GLOBAL ADVANTAGE
FUND (CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of period |
|
$ |
52.70 |
|
|
$ |
52.25 |
|
|
$ |
29.12 |
|
|
$ |
20.02 |
|
|
$ |
20.77 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.30 |
)(1) |
|
|
(0.49 |
)(1) |
|
|
(0.35 |
)(1) |
|
|
(0.01 |
)(1) |
|
|
(0.16 |
)(1) |
Net
realized and unrealized gain (loss) |
|
|
(26.82 |
) |
|
|
0.94 |
|
|
|
23.48 |
|
|
|
9.11 |
|
|
|
(0.59 |
) |
Total
from investment operations |
|
|
(27.12 |
) |
|
|
0.45 |
|
|
|
23.13 |
|
|
|
9.10 |
|
|
|
(0.75 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(0.50 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
(0.50 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
25.08 |
|
|
$ |
52.70 |
|
|
$ |
52.25 |
|
|
$ |
29.12 |
|
|
$ |
20.02 |
|
TOTAL
RETURN |
|
|
(51.57 |
)%(2)(5) |
|
|
0.86 |
%(2)(4) |
|
|
79.43 |
%(2) |
|
|
45.45 |
%(2) |
|
|
(3.61 |
)%(2) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
538.1 |
|
|
$ |
1,803.3 |
|
|
$ |
1,470.9 |
|
|
$ |
212.8 |
|
|
$ |
49.2 |
|
Ratio
of total expenses to average net assets |
|
|
0.94 |
% |
|
|
0.90 |
% |
|
|
0.92 |
% |
|
|
1.00 |
% |
|
|
1.18 |
% |
Less:
Ratio of interest expense to average net assets |
|
|
(0.01 |
)% |
|
|
(0.00 |
)%(3) |
|
|
0.00 |
% |
|
|
(0.00 |
)%(3) |
|
|
(0.00 |
)%(3) |
Ratio
of operating expenses to average net assets |
|
|
0.93 |
% |
|
|
0.90 |
% |
|
|
0.92 |
% |
|
|
1.00 |
% |
|
|
1.18 |
% |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.03 |
)% |
|
|
(0.00 |
)%(6) |
|
|
(0.02 |
)% |
|
|
(0.10 |
)% |
|
|
(0.28 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
0.90 |
% |
|
|
0.90 |
% |
|
|
0.90 |
% |
|
|
0.90 |
% |
|
|
0.90 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.89 |
)% |
|
|
(0.89 |
)% |
|
|
(0.85 |
)% |
|
|
(0.03 |
)% |
|
|
(0.71 |
)% |
Portfolio
turnover rate |
|
|
11.50 |
% |
|
|
23.73 |
% |
|
|
8.75 |
% |
|
|
19.44 |
% |
|
|
19.77 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
(3) |
|
Interest expense rounds
to less than 0.01%. |
(4) |
|
The Adviser made
voluntary payments to the Fund in the amount of $162,538 to compensate the
Fund for losses incurred due to valuation errors. The impact of these
payments increased the Fund’s total return by less than
0.01%. |
(5) |
|
The Adviser made a
voluntary payment to the Fund in the amount of $82,890 to compensate the
Fund for a loss incurred due to a valuation error. The impact of this
payment increased the Fund’s total return by less than
0.01%. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON GLOBAL ADVANTAGE
FUND (CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
R6 SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Net
asset value, beginning of period |
|
$ |
52.73 |
|
|
$ |
52.28 |
|
|
$ |
29.14 |
|
|
$ |
20.03 |
|
|
$ |
20.79 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.29 |
)(1) |
|
|
(0.50 |
)(1) |
|
|
(0.32 |
)(1) |
|
|
(0.03 |
)(1) |
|
|
(0.15 |
)(1) |
Net
realized and unrealized gain (loss) |
|
|
(26.85 |
) |
|
|
0.95 |
|
|
|
23.46 |
|
|
|
9.14 |
|
|
|
(0.61 |
) |
Total
from investment operations |
|
|
(27.14 |
) |
|
|
0.45 |
|
|
|
23.14 |
|
|
|
9.11 |
|
|
|
(0.76 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(0.50 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
(0.50 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
25.09 |
|
|
$ |
52.73 |
|
|
$ |
52.28 |
|
|
$ |
29.14 |
|
|
$ |
20.03 |
|
TOTAL
RETURN |
|
|
(51.58 |
)%(2)(5) |
|
|
0.86 |
%(2)(4) |
|
|
79.41 |
%(2) |
|
|
45.48 |
%(2) |
|
|
(3.66 |
)%(2) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
9.3 |
|
|
$ |
18.4 |
|
|
$ |
15.0 |
|
|
$ |
6.8 |
|
|
$ |
4.3 |
|
Ratio
of total expenses to average net assets |
|
|
0.95 |
% |
|
|
0.90 |
% |
|
|
0.92 |
% |
|
|
1.00 |
% |
|
|
1.16 |
% |
Less:
Ratio of interest expense to average net assets |
|
|
(0.02 |
)% |
|
|
(0.00 |
)%(3) |
|
|
0.00 |
% |
|
|
(0.00 |
)%(3) |
|
|
(0.00 |
)%(3) |
Ratio
of operating expenses to average net assets |
|
|
0.93 |
% |
|
|
0.90 |
% |
|
|
0.92 |
% |
|
|
1.00 |
% |
|
|
1.16 |
% |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.03 |
)% |
|
|
(0.00 |
)%(6) |
|
|
(0.02 |
)% |
|
|
(0.10 |
)% |
|
|
(0.26 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
0.90 |
% |
|
|
0.90 |
% |
|
|
0.90 |
% |
|
|
0.90 |
% |
|
|
0.90 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.89 |
)% |
|
|
(0.89 |
)% |
|
|
(0.83 |
)% |
|
|
(0.10 |
)% |
|
|
(0.69 |
)% |
Portfolio
turnover rate |
|
|
11.50 |
% |
|
|
23.73 |
% |
|
|
8.75 |
% |
|
|
19.44 |
% |
|
|
19.77 |
% |
(1) |
|
Based on average shares
outstanding. |
(2) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
(3) |
|
Interest expense rounds
to less than 0.01%. |
(4) |
|
The Adviser made
voluntary payments to the Fund in the amount of $162,538 to compensate the
Fund for losses incurred due to valuation errors. The impact of these
payments increased the Fund’s total return by less than
0.01%. |
(5) |
|
The Adviser made a
voluntary payment to the Fund in the amount of $82,890 to compensate the
Fund for a loss incurred due to a valuation error. The impact of this
payment increased the Fund’s total return by less than
0.01%. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON REAL ESTATE INCOME
FUND
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
RETAIL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018(1) |
|
Net
asset value, beginning of year |
|
$ |
17.90 |
|
|
$ |
14.08 |
|
|
$ |
11.65 |
|
|
$ |
8.63 |
|
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income |
|
|
0.17 |
(2) |
|
|
0.15 |
(2) |
|
|
0.11 |
(2) |
|
|
0.13 |
(2) |
|
|
0.14 |
(2) |
Net
realized and unrealized gain (loss) |
|
|
(5.10 |
) |
|
|
3.93 |
|
|
|
2.43 |
|
|
|
3.02 |
|
|
|
(1.25 |
) |
Total
from investment operations |
|
|
(4.93 |
) |
|
|
4.08 |
|
|
|
2.54 |
|
|
|
3.15 |
|
|
|
(1.11 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
(0.17 |
) |
|
|
(0.19 |
) |
|
|
(0.11 |
) |
|
|
(0.13 |
) |
|
|
(0.26 |
) |
Net
realized gain on investments |
|
|
(0.09 |
) |
|
|
(0.07 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
(0.26 |
) |
|
|
(0.26 |
) |
|
|
(0.11 |
) |
|
|
(0.13 |
) |
|
|
(0.26 |
) |
Net
asset value, end of year |
|
$ |
12.71 |
|
|
$ |
17.90 |
|
|
$ |
14.08 |
|
|
$ |
11.65 |
|
|
$ |
8.63 |
|
TOTAL
RETURN |
|
|
(27.61 |
)%(3) |
|
|
29.08 |
%(3) |
|
|
22.02 |
%(3) |
|
|
36.67 |
%(3) |
|
|
(11.33 |
)%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
13.3 |
|
|
$ |
17.9 |
|
|
$ |
2.9 |
|
|
$ |
1.4 |
|
|
$ |
0.4 |
|
Ratio
of operating expenses to average net assets |
|
|
1.32 |
%(4) |
|
|
1.42 |
%(4) |
|
|
4.40 |
% |
|
|
6.87 |
% |
|
|
10.47 |
% |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.27 |
)% |
|
|
(0.37 |
)% |
|
|
(3.35 |
)% |
|
|
(5.82 |
)% |
|
|
(9.42 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
1.05 |
% |
|
|
1.05 |
% |
|
|
1.05 |
% |
|
|
1.05 |
% |
|
|
1.05 |
% |
Ratio
of net investment income to average net assets |
|
|
1.13 |
% |
|
|
0.94 |
% |
|
|
0.91 |
% |
|
|
1.20 |
% |
|
|
1.43 |
% |
Portfolio
turnover rate |
|
|
185.25 |
%(5) |
|
|
96.59 |
% |
|
|
41.75 |
% |
|
|
52.50 |
% |
|
|
67.39 |
% |
(1) |
|
For the period January
2, 2018 (commencement of operations) to December 31,
2018. |
(2) |
|
Based on average shares
outstanding. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
(4) |
|
Interest expense rounds
to less than 0.01%. |
(5) |
|
Increased market
volatility and large net capital stock outflows caused an increase in the
Fund’s portfolio turnover rate in 2022 beyond historical
levels. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON REAL ESTATE INCOME
FUND (CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018(1) |
|
Net
asset value, beginning of year |
|
$ |
18.05 |
|
|
$ |
14.15 |
|
|
$ |
11.68 |
|
|
$ |
8.66 |
|
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income |
|
|
0.20 |
(2) |
|
|
0.18 |
(2) |
|
|
0.37 |
(2) |
|
|
0.14 |
(2) |
|
|
0.16 |
(2) |
Net
realized and unrealized gain (loss) |
|
|
(5.14 |
) |
|
|
3.98 |
|
|
|
2.21 |
|
|
|
3.01 |
|
|
|
(1.24 |
) |
Total
from investment operations |
|
|
(4.94 |
) |
|
|
4.16 |
|
|
|
2.58 |
|
|
|
3.15 |
|
|
|
(1.08 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
(0.17 |
) |
|
|
(0.19 |
) |
|
|
(0.11 |
) |
|
|
(0.13 |
) |
|
|
(0.26 |
) |
Net
realized gain on investments |
|
|
(0.09 |
) |
|
|
(0.07 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
(0.26 |
) |
|
|
(0.26 |
) |
|
|
(0.11 |
) |
|
|
(0.13 |
) |
|
|
(0.26 |
) |
Net
asset value, end of year |
|
$ |
12.85 |
|
|
$ |
18.05 |
|
|
$ |
14.15 |
|
|
$ |
11.68 |
|
|
$ |
8.66 |
|
TOTAL
RETURN |
|
|
(27.43 |
)%(3) |
|
|
29.51 |
%(3) |
|
|
22.30 |
%(3) |
|
|
36.54 |
%(3) |
|
|
(11.03 |
)%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
63.4 |
|
|
$ |
113.7 |
|
|
$ |
43.6 |
|
|
$ |
2.7 |
|
|
$ |
2.0 |
|
Ratio
of operating expenses to average net assets |
|
|
0.96 |
%(4) |
|
|
1.08 |
%(4) |
|
|
3.45 |
% |
|
|
5.63 |
% |
|
|
7.18 |
% |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.16 |
)% |
|
|
(0.28 |
)% |
|
|
(2.65 |
)% |
|
|
(4.83 |
)% |
|
|
(6.38 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
Ratio
of net investment income to average net assets |
|
|
1.31 |
% |
|
|
1.11 |
% |
|
|
3.00 |
% |
|
|
1.37 |
% |
|
|
1.71 |
% |
Portfolio
turnover rate |
|
|
185.25 |
%(5) |
|
|
96.59 |
% |
|
|
41.75 |
% |
|
|
52.50 |
% |
|
|
67.39 |
% |
(1) |
|
For the period January
2, 2018 (commencement of operations) to December 31,
2018. |
(2) |
|
Based on average shares
outstanding. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
(4) |
|
Interest expense rounds
to less than 0.01%. |
(5) |
|
Increased market
volatility and large net capital stock outflows caused an increase in the
Fund’s portfolio turnover rate in 2022 beyond historical
levels. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON REAL ESTATE INCOME
FUND (CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
R6 SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018(1) |
|
Net
asset value, beginning of year |
|
$ |
18.03 |
|
|
$ |
14.14 |
|
|
$ |
11.67 |
|
|
$ |
8.66 |
|
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income |
|
|
0.21 |
(2) |
|
|
0.16 |
(2) |
|
|
0.11 |
(2) |
|
|
0.14 |
(2) |
|
|
0.20 |
(2) |
Net
realized and unrealized gain (loss) |
|
|
(5.14 |
) |
|
|
3.99 |
|
|
|
2.47 |
|
|
|
3.00 |
|
|
|
(1.28 |
) |
Total
from investment operations |
|
|
(4.93 |
) |
|
|
4.15 |
|
|
|
2.58 |
|
|
|
3.14 |
|
|
|
(1.08 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
(0.17 |
) |
|
|
(0.19 |
) |
|
|
(0.11 |
) |
|
|
(0.13 |
) |
|
|
(0.26 |
) |
Net
realized gain on investments |
|
|
(0.09 |
) |
|
|
(0.07 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
(0.26 |
) |
|
|
(0.26 |
) |
|
|
(0.11 |
) |
|
|
(0.13 |
) |
|
|
(0.26 |
) |
Net
asset value, end of year |
|
$ |
12.84 |
|
|
$ |
18.03 |
|
|
$ |
14.14 |
|
|
$ |
11.67 |
|
|
$ |
8.66 |
|
TOTAL
RETURN |
|
|
(27.41 |
)%(3) |
|
|
29.46 |
%(3) |
|
|
22.32 |
%(3) |
|
|
36.42 |
%(3) |
|
|
(11.03 |
)%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
0.6 |
|
|
$ |
0.9 |
|
|
$ |
0.6 |
|
|
$ |
0.4 |
|
|
$ |
0.4 |
|
Ratio
of operating expenses to average net assets |
|
|
0.97 |
%(4) |
|
|
1.08 |
%(4) |
|
|
3.47 |
% |
|
|
5.27 |
% |
|
|
7.05 |
% |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.17 |
)% |
|
|
(0.28 |
)% |
|
|
(2.67 |
)% |
|
|
(4.47 |
)% |
|
|
(6.25 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
|
|
0.80 |
% |
Ratio
of net investment income to average net assets |
|
|
1.38 |
% |
|
|
1.01 |
% |
|
|
1.06 |
% |
|
|
1.36 |
% |
|
|
2.07 |
% |
Portfolio
turnover rate |
|
|
185.25 |
%(5) |
|
|
96.59 |
% |
|
|
41.75 |
% |
|
|
52.50 |
% |
|
|
67.39 |
% |
(1) |
|
For the period January
2, 2018 (commencement of operations) to December 31,
2018. |
(2) |
|
Based on average shares
outstanding. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
(4) |
|
Interest expense rounds
to less than 0.01%. |
(5) |
|
Increased market
volatility and large net capital stock outflows caused an increase in the
Fund’s portfolio turnover rate in 2022 beyond historical
levels. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON HEALTH CARE
FUND
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
RETAIL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018(1) |
|
Net
asset value, beginning of year |
|
$ |
21.34 |
|
|
$ |
18.75 |
|
|
$ |
12.86 |
|
|
$ |
9.51 |
|
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.06 |
)(2) |
|
|
(0.17 |
)(2) |
|
|
(0.09 |
)(2) |
|
|
(0.06 |
)(2) |
|
|
(0.04 |
)(2) |
Net
realized and unrealized gain (loss) |
|
|
(3.59 |
) |
|
|
3.06 |
|
|
|
6.17 |
|
|
|
3.41 |
|
|
|
(0.45 |
) |
Total
from investment operations |
|
|
(3.65 |
) |
|
|
2.89 |
|
|
|
6.08 |
|
|
|
3.35 |
|
|
|
(0.49 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
0.00 |
|
|
|
(0.30 |
) |
|
|
(0.19 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
(0.30 |
) |
|
|
(0.19 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
17.69 |
|
|
$ |
21.34 |
|
|
$ |
18.75 |
|
|
$ |
12.86 |
|
|
$ |
9.51 |
|
TOTAL
RETURN |
|
|
(17.10 |
)%(3) |
|
|
15.46 |
%(3) |
|
|
47.40 |
%(3) |
|
|
35.23 |
%(3) |
|
|
(4.90 |
)%(3)(4) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
55.0 |
|
|
$ |
76.3 |
|
|
$ |
26.8 |
|
|
$ |
5.0 |
|
|
$ |
2.8 |
|
Ratio
of operating expenses to average net assets |
|
|
1.21 |
% |
|
|
1.17 |
% |
|
|
1.73 |
% |
|
|
2.80 |
% |
|
|
4.94 |
%(5) |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.11 |
)% |
|
|
(0.07 |
)% |
|
|
(0.63 |
)% |
|
|
(1.70 |
)% |
|
|
(3.84 |
)%(5) |
Ratio
of net operating expenses to average net assets |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
1.10 |
%(5) |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.31 |
)% |
|
|
(0.82 |
)% |
|
|
(0.60 |
)% |
|
|
(0.54 |
)% |
|
|
(0.60 |
)%(5) |
Portfolio
turnover rate |
|
|
71.55 |
% |
|
|
55.38 |
% |
|
|
35.84 |
% |
|
|
68.10 |
% |
|
|
27.30 |
%(4) |
(1) |
|
For the period
April 30, 2018 (commencement of operations) to December 31,
2018. |
(2) |
|
Based on average shares
outstanding. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON HEALTH CARE FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018(1) |
|
Net
asset value, beginning of year |
|
$ |
21.54 |
|
|
$ |
18.88 |
|
|
$ |
12.92 |
|
|
$ |
9.53 |
|
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.01 |
)(2) |
|
|
(0.12 |
)(2) |
|
|
(0.05 |
)(2) |
|
|
(0.03 |
)(2) |
|
|
(0.02 |
)(2) |
Net
realized and unrealized gain (loss) |
|
|
(3.62 |
) |
|
|
3.08 |
|
|
|
6.20 |
|
|
|
3.42 |
|
|
|
(0.45 |
) |
Total
from investment operations |
|
|
(3.63 |
) |
|
|
2.96 |
|
|
|
6.15 |
|
|
|
3.39 |
|
|
|
(0.47 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
0.00 |
|
|
|
(0.30 |
) |
|
|
(0.19 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
(0.30 |
) |
|
|
(0.19 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
17.91 |
|
|
$ |
21.54 |
|
|
$ |
18.88 |
|
|
$ |
12.92 |
|
|
$ |
9.53 |
|
TOTAL
RETURN |
|
|
(16.85 |
)%(3) |
|
|
15.72 |
%(3) |
|
|
47.72 |
%(3) |
|
|
35.57 |
%(3) |
|
|
(4.70 |
)%(3)(4) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
149.3 |
|
|
$ |
172.4 |
|
|
$ |
38.6 |
|
|
$ |
9.1 |
|
|
$ |
4.5 |
|
Ratio
of operating expenses to average net assets |
|
|
0.90 |
% |
|
|
0.89 |
% |
|
|
1.45 |
% |
|
|
2.39 |
% |
|
|
4.06 |
%(5) |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.05 |
)% |
|
|
(0.04 |
)% |
|
|
(0.60 |
)% |
|
|
(1.54 |
)% |
|
|
(3.21 |
)%(5) |
Ratio
of net operating expenses to average net assets |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
%(5) |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.05 |
)% |
|
|
(0.57 |
)% |
|
|
(0.31 |
)% |
|
|
(0.28 |
)% |
|
|
(0.33 |
)%(5) |
Portfolio
turnover rate |
|
|
71.55 |
% |
|
|
55.38 |
% |
|
|
35.84 |
% |
|
|
68.10 |
% |
|
|
27.30 |
%(4) |
(1) |
|
For the period
April 30, 2018 (commencement of operations) to December 31,
2018. |
(2) |
|
Based on average shares
outstanding. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON HEALTH CARE FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
R6 SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018(1) |
|
Net
asset value, beginning of year |
|
$ |
21.54 |
|
|
$ |
18.87 |
|
|
$ |
12.91 |
|
|
$ |
9.52 |
|
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.01 |
)(2) |
|
|
(0.12 |
)(2) |
|
|
(0.04 |
)(2) |
|
|
(0.03 |
)(2) |
|
|
(0.02 |
)(2) |
Net
realized and unrealized gain (loss) |
|
|
(3.63 |
) |
|
|
3.09 |
|
|
|
6.19 |
|
|
|
3.42 |
|
|
|
(0.46 |
) |
Total
from investment operations |
|
|
(3.64 |
) |
|
|
2.97 |
|
|
|
6.15 |
|
|
|
3.39 |
|
|
|
(0.48 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
0.00 |
|
|
|
(0.30 |
) |
|
|
(0.19 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
(0.30 |
) |
|
|
(0.19 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
17.90 |
|
|
$ |
21.54 |
|
|
$ |
18.87 |
|
|
$ |
12.91 |
|
|
$ |
9.52 |
|
TOTAL
RETURN |
|
|
(16.90 |
)%(3) |
|
|
15.79 |
%(3) |
|
|
47.76 |
%(3) |
|
|
35.61 |
%(3) |
|
|
(4.80 |
)%(3)(4) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
5.7 |
|
|
$ |
6.5 |
|
|
$ |
4.9 |
|
|
$ |
1.3 |
|
|
$ |
0.7 |
|
Ratio
of operating expenses to average net assets |
|
|
0.89 |
% |
|
|
0.89 |
% |
|
|
1.44 |
% |
|
|
2.22 |
% |
|
|
3.14 |
%(5) |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.04 |
)% |
|
|
(0.04 |
)% |
|
|
(0.59 |
)% |
|
|
(1.37 |
)% |
|
|
(2.29 |
)%(5) |
Ratio
of net operating expenses to average net assets |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
% |
|
|
0.85 |
%(5) |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.05 |
)% |
|
|
(0.57 |
)% |
|
|
(0.25 |
)% |
|
|
(0.28 |
)% |
|
|
(0.32 |
)%(5) |
Portfolio
turnover rate |
|
|
71.55 |
% |
|
|
55.38 |
% |
|
|
35.84 |
% |
|
|
68.10 |
% |
|
|
27.30 |
%(4) |
(1) |
|
For the period
April 30, 2018 (commencement of operations) to December 31,
2018. |
(2) |
|
Based on average shares
outstanding. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON FINTECH
FUND
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
RETAIL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020(1) |
|
Net
asset value, beginning of year |
|
$ |
16.90 |
|
|
$ |
14.69 |
|
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.07 |
)(2) |
|
|
(0.14 |
)(2) |
|
|
(0.09 |
)(2) |
Net
realized and unrealized gain (loss) |
|
|
(5.59 |
) |
|
|
2.35 |
|
|
|
4.78 |
|
Total
from investment operations |
|
|
(5.66 |
) |
|
|
2.21 |
|
|
|
4.69 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(0.15 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
(0.15 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
11.09 |
|
|
$ |
16.90 |
|
|
$ |
14.69 |
|
TOTAL
RETURN |
|
|
(33.46 |
)%(3) |
|
|
15.04 |
%(3) |
|
|
46.90 |
%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
7.0 |
|
|
$ |
13.2 |
|
|
$ |
6.4 |
|
Ratio
of operating expenses to average net assets |
|
|
1.63 |
%(4) |
|
|
1.57 |
% |
|
|
3.09 |
% |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.43 |
)% |
|
|
(0.37 |
)% |
|
|
(1.89 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
1.20 |
% |
|
|
1.20 |
% |
|
|
1.20 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.56 |
)% |
|
|
(0.85 |
)% |
|
|
(0.77 |
)% |
Portfolio
turnover rate |
|
|
27.08 |
% |
|
|
11.88 |
% |
|
|
8.12 |
% |
1 |
|
For the period
January 2, 2020 (commencement of operations) to December 31,
2020. |
2 |
|
Based on average shares
outstanding. |
3 |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
4 |
|
Interest expense rounds
to less than 0.01%. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON FINTECH FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020(1) |
|
Net
asset value, beginning of year |
|
$ |
16.98 |
|
|
$ |
14.72 |
|
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.04 |
)(2) |
|
|
(0.10 |
)(2) |
|
|
(0.07 |
)(2) |
Net
realized and unrealized gain (loss) |
|
|
(5.62 |
) |
|
|
2.36 |
|
|
|
4.79 |
|
Total
from investment operations |
|
|
(5.66 |
) |
|
|
2.26 |
|
|
|
4.72 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(0.15 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
(0.15 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
11.17 |
|
|
$ |
16.98 |
|
|
$ |
14.72 |
|
TOTAL
RETURN |
|
|
(33.30 |
)%(3) |
|
|
15.35 |
%(3) |
|
|
47.20 |
%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
31.1 |
|
|
$ |
58.5 |
|
|
$ |
24.0 |
|
Ratio
of operating expenses to average net assets |
|
|
1.20 |
%(4) |
|
|
1.18 |
% |
|
|
2.43 |
% |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.25 |
)% |
|
|
(0.23 |
)% |
|
|
(1.48 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
0.95 |
% |
|
|
0.95 |
% |
|
|
0.95 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.30 |
)% |
|
|
(0.60 |
)% |
|
|
(0.54 |
)% |
Portfolio
turnover rate |
|
|
27.08 |
|
|
|
11.88 |
% |
|
|
8.12 |
% |
1 |
|
For the period
January 2, 2020 (commencement of operations) to December 31,
2020. |
2 |
|
Based on average shares
outstanding. |
3 |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
4 |
|
Interest expense rounds
to less than 0.01%. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON FINTECH FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
R6 SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2020(1) |
|
Net
asset value, beginning of year |
|
$ |
16.98 |
|
|
$ |
14.73 |
|
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.04 |
)(2) |
|
|
(0.10 |
)(2) |
|
|
(0.06 |
)(2) |
Net
realized and unrealized gain (loss) |
|
|
(5.62 |
) |
|
|
2.35 |
|
|
|
4.79 |
|
Total
from investment operations |
|
|
(5.66 |
) |
|
|
2.25 |
|
|
|
4.73 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(0.15 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
(0.15 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
11.17 |
|
|
$ |
16.98 |
|
|
$ |
14.73 |
|
TOTAL
RETURN |
|
|
(33.30 |
)%(3) |
|
|
15.28 |
%(3) |
|
|
47.30 |
%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
4.5 |
|
|
$ |
6.6 |
|
|
$ |
3.7 |
|
Ratio
of operating expenses to average net assets |
|
|
1.18 |
%(4) |
|
|
1.18 |
% |
|
|
2.33 |
% |
Less:
Reimbursement of expenses by Adviser |
|
|
(0.23 |
)% |
|
|
(0.23 |
)% |
|
|
(1.38 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
0.95 |
% |
|
|
0.95 |
% |
|
|
0.95 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.30 |
)% |
|
|
(0.60 |
)% |
|
|
(0.53 |
)% |
Portfolio
turnover rate |
|
|
27.08 |
% |
|
|
11.88 |
% |
|
|
8.12 |
% |
1 |
|
For the period
January 2, 2020 (commencement of operations) to December 31,
2020. |
2 |
|
Based on average shares
outstanding. |
3 |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
4 |
|
Interest expense rounds
to less than 0.01%. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON NEW ASIA FUND
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
| |
|
|
RETAIL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021(1) |
|
Net
asset value, beginning of year |
|
$ |
10.17 |
|
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.05 |
)(2) |
|
|
(0.05 |
)(2) |
Net
realized and unrealized gain (loss) |
|
|
(2.72 |
) |
|
|
0.22 |
|
Total
from investment operations |
|
|
(2.77 |
) |
|
|
0.17 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
| |
|
| |
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
7.40 |
|
|
$ |
10.17 |
|
TOTAL
RETURN |
|
|
(27.24 |
)%(3) |
|
|
1.70 |
%(3)(4) |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
| |
|
| |
Net
assets (in millions), end of year |
|
$ |
0.9 |
|
|
$ |
1.3 |
|
Ratio
of operating expenses to average net assets |
|
|
8.96 |
% |
|
|
10.06 |
%(5)(6) |
Less:
Reimbursement of expenses by Adviser |
|
|
(7.51 |
)% |
|
|
(8.61 |
)%(5)(6) |
Ratio
of net operating expenses to average net assets |
|
|
1.45 |
% |
|
|
1.45 |
%(5)(6) |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.58 |
)% |
|
|
(1.25 |
)%(6) |
Portfolio
turnover rate |
|
|
56.48 |
% |
|
|
14.32 |
%(4) |
(1) |
|
For the period
July 30, 2021 (commencement of operations) to December 31,
2021. |
(2) |
|
Based on average shares
outstanding. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
(5) |
|
Certain fixed expenses
incurred by the Fund were not annualized for the period ended
December 31, 2021. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON NEW ASIA FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
| |
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021(1) |
|
Net
asset value, beginning of year |
|
$ |
10.17 |
|
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.03 |
)(2) |
|
|
(0.04 |
)(2) |
Net
realized and unrealized gain (loss) |
|
|
(2.71 |
) |
|
|
0.21 |
|
Total
from investment operations |
|
|
(2.74 |
) |
|
|
0.17 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
| |
|
| |
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
7.43 |
|
|
$ |
10.17 |
|
TOTAL
RETURN |
|
|
(26.94 |
)%(3) |
|
|
1.70 |
%(3)(4) |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
| |
|
| |
Net
assets (in millions), end of year |
|
$ |
2.7 |
|
|
$ |
3.2 |
|
Ratio
of operating expenses to average net assets |
|
|
7.22 |
% |
|
|
8.59 |
%(5)(6) |
Less:
Reimbursement of expenses by Adviser |
|
|
(6.02 |
)% |
|
|
(7.39 |
)%(5)(6) |
Ratio
of net operating expenses to average net assets |
|
|
1.20 |
% |
|
|
1.20 |
%(5)(6) |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.33 |
)% |
|
|
(1.00 |
)%(6) |
Portfolio
turnover rate |
|
|
56.48 |
% |
|
|
14.32 |
%(4) |
(1) |
|
For the period
July 30, 2021 (commencement of operations) to December 31,
2021. |
(2) |
|
Based on average shares
outstanding. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
(5) |
|
Certain fixed expenses
incurred by the Fund were not annualized for the period ended
December 31, 2021. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON NEW ASIA FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
|
|
|
|
| |
|
|
R6 SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022 |
|
|
2021(1) |
|
Net
asset value, beginning of year |
|
$ |
10.17 |
|
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.03 |
)(2) |
|
|
(0.04 |
)(2) |
Net
realized and unrealized gain (loss) |
|
|
(2.70 |
) |
|
|
0.21 |
|
Total
from investment operations |
|
|
(2.73 |
) |
|
|
0.17 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
| |
|
| |
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
7.44 |
|
|
$ |
10.17 |
|
TOTAL
RETURN |
|
|
(26.84 |
)%(3) |
|
|
1.70 |
%(3)(4) |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
| |
|
| |
Net
assets (in millions), end of year |
|
$ |
0.1 |
|
|
$ |
0.0 |
(7) |
Ratio
of operating expenses to average net assets |
|
|
7.95 |
% |
|
|
8.10 |
%(5)(6) |
Less:
Reimbursement of expenses by Adviser |
|
|
(6.75 |
)% |
|
|
(6.90 |
)%(5)(6) |
Ratio
of net operating expenses to average net assets |
|
|
1.20 |
% |
|
|
1.20 |
%(5)(6) |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.42 |
)% |
|
|
(0.99 |
)%(6) |
Portfolio
turnover rate |
|
|
56.48 |
% |
|
|
14.32 |
%(4) |
(1) |
|
For the period
July 30, 2021 (commencement of operations) to December 31,
2021. |
(2) |
|
Based on average shares
outstanding. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
(5) |
|
Certain fixed expenses
incurred by the Fund were not annualized for the period ended
December 31, 2021. |
(7) |
|
Amount represents less
than $500,000. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON TECHNOLOGY FUND
Selected
data for a share outstanding throughout each year:
|
|
|
| |
|
|
RETAIL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022(1) |
|
Net
asset value, beginning of period |
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.06 |
)(2) |
Net
realized and unrealized gain (loss) |
|
|
(4.38 |
) |
Total
from investment operations |
|
|
(4.44 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
Net
realized gain on investments |
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
5.56 |
|
TOTAL
RETURN |
|
|
(44.40 |
)%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
1.3 |
|
Ratio
of operating expenses to average net assets |
|
|
6.86 |
% |
Less:
Reimbursement of expenses by Adviser |
|
|
(5.66 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
1.20 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.81 |
)% |
Portfolio
turnover rate |
|
|
19.13 |
% |
(1) |
|
For the period
January 3, 2022 (commencement of operations) to December 31,
2022. |
(2) |
|
Based on average shares
outstanding. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON TECHNOLOGY FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
| |
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022(1) |
|
Net
asset value, beginning of period |
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.04 |
)(2) |
Net
realized and unrealized gain (loss) |
|
|
(4.39 |
) |
Total
from investment operations |
|
|
(4.43 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
Net
realized gain on investments |
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
5.57 |
|
TOTAL
RETURN |
|
|
(44.30 |
)%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
1.6 |
|
Ratio
of operating expenses to average net assets |
|
|
6.42 |
% |
Less:
Reimbursement of expenses by Adviser |
|
|
(5.47 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
0.95 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.55 |
)% |
Portfolio
turnover rate |
|
|
19.13 |
% |
(1) |
|
For the period
January 3, 2022 (commencement of operations) to December 31,
2022. |
(2) |
|
Based on average shares
outstanding. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
|
| |
Information about your
Investment |
|
Baron Funds® |
BARON TECHNOLOGY FUND
(CONTINUED)
Selected
data for a share outstanding throughout each year:
|
|
|
| |
|
|
R6 SHARES |
|
|
|
Year Ended December 31, |
|
|
|
2022(1) |
|
Net
asset value, beginning of period |
|
$ |
10.00 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss) |
|
|
(0.03 |
)(2) |
Net
realized and unrealized gain (loss) |
|
|
(4.40 |
) |
Total
from investment operations |
|
|
(4.43 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
Net
realized gain on investments |
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
5.57 |
|
TOTAL
RETURN |
|
|
(44.30 |
)%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
0.4 |
|
Ratio
of operating expenses to average net assets |
|
|
3.75 |
% |
Less:
Reimbursement of expenses by Adviser |
|
|
(2.80 |
)% |
Ratio
of net operating expenses to average net assets |
|
|
0.95 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.46 |
)% |
Portfolio
turnover rate |
|
|
19.13 |
% |
(1) |
|
For the period
January 3, 2022 (commencement of operations) to December 31,
2022. |
(2) |
|
Based on average shares
outstanding. |
(3) |
|
The total returns would
have been lower had certain expenses not been reduced during the period
shown. |
|
| |
Information about your
Investment |
|
Baron Funds® |
General Information
Custodian, Administrator, Transfer Agent and Dividend
Agent
State
Street Bank and Trust Company (“State Street”), One Lincoln Street, Boston,
MA 02111, serves as the custodian for the Funds’ cash and securities.
State
Street serves as the administrator to the Funds and provides certain accounting
and bookkeeping services, which include maintaining the books of each Fund,
calculating daily the income and NAV per share of each Fund and assisting in the
preparation of tax returns and reports to shareholders.
SS&C
Global Investor & Distribution Solutions, Inc. serves as the transfer agent
and dividend disbursing agent for the Funds.
These
institutions are not responsible for investment decisions of the Funds.
Shareholder Information
If
you have questions about your account or transactions, please contact SS&C
at SS&C Global Investor & Distribution Solutions, Inc., P.O. Box 219946,
Kansas City, MO 64121-9946, or by telephone at 1‑800‑442‑3814.
If
you have questions about general Fund information, please call 1-800-99BARON or
212-583-2100.
As
a Delaware statutory trust, annual shareholder meetings are not required. The
Adviser sends Annual and Semi-Annual financial reports to shareholders. Pending
legal proceedings, if any, are disclosed in the SAI.
For More Information
Investors who want more information about Baron Funds® may obtain the following
documents free upon request at the numbers or addresses below.
Shareholder Reports and Statement of Additional
Information
Additional information about the Funds’ investments is
available in the Funds’ Annual and Semi-Annual financial reports to
shareholders. In the Funds’ Annual Report you will find a discussion of the
market conditions and investment strategies that significantly affected the
Funds’ performance during the last fiscal year.
Additional information is also contained in the SAI dated
April 28, 2023. A current SAI is on file with the SEC and is incorporated by
reference in this Prospectus. You may obtain the SAI and the shareholder reports
without charge by writing or calling 1-800-99BARON. The SAI and shareholder
reports are also available on the Baron Funds® website, www.BaronFunds.com.
|
|
|
| |
By telephone: |
|
Call 1-800-99BARON
(1-800-992-2766) |
|
|
|
| |
By mail: |
|
Write to: BARON FUNDS®
767 Fifth Avenue
New York, NY 10153 |
|
|
|
| |
By e-mail: |
|
Send your request to:
|
|
|
| |
On the Internet: |
|
Text-only versions of Baron
Funds® documents
can be viewed online or down loaded from www.BaronFunds.com or from the
EDGAR database on the SEC’s website at www.sec.gov |
|
| |
Ticker Symbols: |
|
Baron Partners Fund® |
|
|
| |
Retail Shares |
|
BPTRX |
| |
Institutional Shares |
|
BPTIX |
| |
R6 Shares |
|
BPTUX |
| |
Baron Focused Growth Fund® |
|
|
| |
Retail Shares |
|
BFGFX |
| |
Institutional Shares |
|
BFGIX |
| |
R6 Shares |
|
BFGUX |
| |
Baron International Growth
Fund® |
|
|
| |
Retail Shares |
|
BIGFX |
| |
Institutional Shares |
|
BINIX |
| |
R6 Shares |
|
BIGUX |
| |
Baron Real Estate Fund® |
|
|
| |
Retail Shares |
|
BREFX |
| |
Institutional Shares |
|
BREIX |
| |
R6 Shares |
|
BREUX |
| |
Baron Emerging Markets
Fund® |
| |
Retail Shares |
|
BEXFX |
| |
Institutional Shares |
|
BEXIX |
| |
R6 Shares |
|
BEXUX |
| |
Baron Global Advantage
Fund® |
|
|
| |
Retail Shares |
|
BGAFX |
| |
Institutional Shares |
|
BGAIX |
| |
R6 Shares |
|
BGLUX |
| |
Baron Real Estate Income
Fund® |
|
|
| |
Retail Shares |
|
BRIFX |
| |
Institutional Shares |
|
BRIIX |
| |
R6 Shares |
|
BRIUX |
| |
Baron Health Care Fund® |
|
|
| |
Retail Shares |
|
BHCFX |
| |
Institutional Shares |
|
BHCHX |
| |
R6 Shares |
|
BHCUX |
| |
Baron FinTech Fund® |
|
|
| |
Retail Shares |
|
BFINX |
| |
Institutional Shares |
|
BFIIX |
| |
R6 Shares |
|
BFIUX |
| |
Baron New Asia Fund® |
|
|
| |
Retail Shares |
|
BNAFX |
| |
Institutional Shares |
|
BNAIX |
| |
R6 Shares |
|
BNAUX |
| |
Baron Technology Fund® |
|
|
| |
Retail Shares |
|
BTEEX |
| |
Institutional Shares |
|
BTECX |
| |
R6 Shares |
|
BTEUX |
|
| |
SEC file number: |
|
811-21296 |
|
|
No person has been authorized to give any information or
to make any representations other than those contained in this prospectus or in
the related SAI.
STATPROSELECT 04/28/2023