BARON INVESTMENT FUNDS TRUST
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Table of Contents |
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Baron Funds® |
Baron Asset Fund
Investment Goal
The
investment goal of Baron Asset Fund® (the “Fund”) is capital
appreciation through long-term investments primarily in securities of mid-sized
companies with undervalued assets or favorable growth
prospects.
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 ASSET
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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1.30% |
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Institutional
Shares |
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1.00% |
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0.00% |
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0.05% |
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1.05% |
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R6
Shares |
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1.00% |
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0.00% |
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0.05% |
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1.05% |
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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
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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YEAR |
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1 |
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3 |
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5 |
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10 |
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BARON
ASSET FUND |
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Retail
Shares |
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$ |
132 |
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$ |
412 |
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$ |
713 |
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$ |
1,568 |
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Institutional
Shares |
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$ |
107 |
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$ |
334 |
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$ |
579 |
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$ |
1,283 |
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R6
Shares |
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$ |
107 |
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$ |
334 |
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$ |
579 |
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$ |
1,283 |
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Baron Asset Fund
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
September 30, 2023, the Fund’s portfolio turnover rate was 5.48% of the average value of its
portfolio.
Investments, Risks, and
Performance
Principal Investment Strategies of the Fund
The
Fund is a diversified fund that invests for the long term primarily in equity
securities in the form of common stock of U.S. mid-sized growth companies.
BAMCO, Inc. (“BAMCO” or the “Adviser”) defines mid-sized companies as those, at
the time of purchase, with market capitalizations above $2.5 billion or the
smallest market cap stock in the Russell Midcap Growth Index at reconstitution,
whichever is larger, and below 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 market capitalizations
at the time of the Fund’s investment.
Principal Risks of Investing in the 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
Baron Asset Fund
in
February 2022 and the world-wide response to it, have and may continue to
adversely impact issuers and markets worldwide. The active and expanding
conflict in the Middle East between Israel and Hamas presents considerable
market risks. 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.
Mid-Sized Companies. The Adviser
believes there is more potential for capital appreciation in mid-sized
companies, but there also may be more risk. Securities of 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 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. Mid-sized companies rely more on
the skills of management and on their continued tenure. Investing in 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.
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
Baron Asset Fund
price
movements caused by disproportionate investor optimism or pessimism, with little
or no basis in the companies’ fundamentals or economic
conditions.
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 and 10 years
and since inception compare with those of two broad measures 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: |
06/30/20:
27.95% |
Worst Quarter: |
06/30/22: (21.15)% |
Average Annual Total Returns (for periods ended
12/31/23)
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 market indexes
over various periods ended December 31, 2023. This table shows how the Fund’s
performance compares to that of the Russell Midcap® Growth Index, which measures
the performance of the mid-cap growth segment of the U.S. equity universe, in
which the Fund invests, and the S&P 500 Index, a broad-based securities
index that reflects the overall U.S. equity market. 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.
Baron Asset 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,
2023
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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
ASSET FUND |
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Retail Shares (Inception date: 06-12-87) |
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Return
before taxes |
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17.04 |
% |
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12.53 |
% |
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10.20 |
% |
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11.25 |
% |
Return
after taxes on distributions |
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16.05 |
% |
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11.69 |
% |
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8.89 |
% |
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10.24 |
% |
Return
after taxes on distributions and sale of Fund shares |
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10.72 |
% |
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10.04 |
% |
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8.05 |
% |
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9.83 |
% |
Institutional Shares* (Inception date:
05-29-09) |
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Return
before taxes |
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17.35 |
% |
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12.82 |
% |
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10.49 |
% |
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11.37 |
% |
R6 Shares* (Inception date:
01-29-16) |
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Return
before taxes |
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17.34 |
% |
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12.82 |
% |
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10.49 |
% |
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11.37 |
% |
Russell
Midcap® Growth
Index (reflects no deduction for fees, expenses or taxes) |
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25.87 |
% |
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13.81 |
% |
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10.57 |
% |
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10.20 |
%† |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
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26.29 |
% |
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15.69 |
% |
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12.03 |
% |
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10.20 |
% |
* |
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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 January 29, 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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For the period June 30, 1987 to
December 31, 2023. |
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Andrew Peck has
been the sole portfolio manager of the Fund since January 23, 2008. He had
been a co-portfolio manager of the Fund with Ronald Baron since July 23,
2003. Mr. Peck has worked at the Adviser as an analyst since February of
1998.
Baron Asset 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 |
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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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$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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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$7,000 for retirement accounts ($8,000 for
individuals 50 or older) and $250,000 for non‑retirement
accounts. |
Baron Asset 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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$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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;
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4. |
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Visiting the Baron
Funds® website
www.BaronFunds.com; or
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5. |
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Through a broker, dealer
or other financial intermediary that may charge you a fee.
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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 long-term 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 Asset 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 Growth Fund
Investment Goal
The
investment goal of Baron Growth Fund® (the “Fund”) is capital
appreciation through long-term investments primarily in securities of
small-sized growth companies.
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 Expense |
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BARON GROWTH
FUND |
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Retail
Shares |
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1.00% |
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0.25% |
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0.04% |
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0.01% |
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0.05% |
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1.30% |
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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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0.01% |
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0.05% |
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1.05% |
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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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0.01% |
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0.05% |
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1.05% |
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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
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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YEAR |
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1 |
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3 |
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5 |
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|
10 |
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BARON
GROWTH FUND |
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Retail
Shares |
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$ |
132 |
|
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$ |
412 |
|
|
$ |
713 |
|
|
$ |
1,568 |
|
Institutional
Shares |
|
$ |
107 |
|
|
$ |
334 |
|
|
$ |
579 |
|
|
$ |
1,283 |
|
R6
Shares |
|
$ |
107 |
|
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$ |
334 |
|
|
$ |
579 |
|
|
$ |
1,283 |
|
Baron Growth Fund
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
September 30, 2023, the Fund’s portfolio turnover rate was 2.11% 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 U.S. small-sized growth companies.
BAMCO, Inc. (“BAMCO” or the “Adviser”) defines small-sized companies as those,
at the time of purchase, with market capitalizations up to the largest market
cap stock in the Russell 2000 Growth Index at reconstitution, or companies with
market capitalizations up to $2.5 billion, whichever is larger. 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 market capitalizations at the time of the Fund’s
investment.
Principal Risks of Investing in the 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
Baron Growth Fund
in
February 2022 and the world-wide response to it, have and may continue to
adversely impact issuers and markets worldwide. The active and expanding
conflict in the Middle East between Israel and Hamas presents considerable
market risks. 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.
Small-Sized Companies. The Adviser
believes there is more potential for capital appreciation in small-sized
companies, but there also may be more risk. Securities of small-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-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-sized companies rely
more on the skills of management and on their continued tenure. Investing in
small-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 and 10 years
and since inception compare with those of two broad measures 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 Growth Fund
Year by Year Total Return (%) as of
December 31 of Each Year (Retail Shares)
Best Quarter: |
06/30/20:
27.39% |
Worst Quarter: |
03/31/20: (22.36)% |
Average Annual Total Returns (for periods ended
12/31/23)
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 market indexes
over various periods ended December 31, 2023. This table shows how the Fund’s
performance compares to that of the Russell 2000® Growth Index, which measures
the performance of the small-cap growth segment of the U.S. equity universe, in
which the Fund invests, and the S&P 500 Index, a broad-based securities
index that reflects the overall U.S. equity market. 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’s shares in a tax-deferred account
(including a 401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Baron Growth Fund
Average
Annual Total Returns for the periods ended December 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
GROWTH FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Inception date: 12-31-94) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
14.68 |
% |
|
|
14.62 |
% |
|
|
9.96 |
% |
|
|
12.73 |
% |
Return
after taxes on distributions |
|
|
14.17 |
% |
|
|
13.37 |
% |
|
|
8.27 |
% |
|
|
11.74 |
% |
Return
after taxes on distributions and sale of Fund shares |
|
|
9.02 |
% |
|
|
11.72 |
% |
|
|
7.70 |
% |
|
|
11.22 |
% |
Institutional Shares* (Inception date:
05-29-09) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
14.97 |
% |
|
|
14.92 |
% |
|
|
10.24 |
% |
|
|
12.88 |
% |
R6 Shares* (Inception date:
01-29-16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
14.97 |
% |
|
|
14.91 |
% |
|
|
10.24 |
% |
|
|
12.88 |
% |
Russell
2000® Growth Index
(reflects no deduction for fees, expenses or taxes) |
|
|
18.66 |
% |
|
|
9.22 |
% |
|
|
7.16 |
% |
|
|
7.67 |
% |
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
|
|
26.29 |
% |
|
|
15.69 |
% |
|
|
12.03 |
% |
|
|
10.47 |
% |
* |
|
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 January 29, 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. |
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Managers. Ronald Baron and
Neal Rosenberg have been the co-managers of Baron Growth Fund since August 28,
2018. Mr. Baron has been the portfolio manager of the Fund since its inception
on December 31, 1994. From January 27, 2017 to August 28, 2018,
Mr. Baron served as the Lead Portfolio Manager of the Fund and Mr.
Rosenberg served as the Assistant Portfolio Manager of the Fund. Mr. Baron
founded the Adviser in 1987. Mr. Rosenberg joined the Adviser as a research
analyst in May of 2006.
Baron 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) and $250,000 for non‑retirement
accounts. |
Baron Growth 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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 long-term 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 Growth 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 Small Cap Fund
Investment Goal
The
investment goal of Baron Small Cap Fund® (the “Fund”) is capital
appreciation through investments primarily in securities of small-sized growth
companies.
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 |
|
BARON
SMALL CAP FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
1.00% |
|
|
|
0.25% |
|
|
|
0.06% |
|
|
|
1.31% |
|
Institutional
Shares |
|
|
1.00% |
|
|
|
0.00% |
|
|
|
0.05% |
|
|
|
1.05% |
|
R6
Shares |
|
|
1.00% |
|
|
|
0.00% |
|
|
|
0.06% |
|
|
|
1.06% |
|
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
SMALL CAP FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
133 |
|
|
$ |
415 |
|
|
$ |
718 |
|
|
$ |
1,579 |
|
Institutional
Shares |
|
$ |
107 |
|
|
$ |
334 |
|
|
$ |
579 |
|
|
$ |
1,283 |
|
R6
Shares |
|
$ |
108 |
|
|
$ |
337 |
|
|
$ |
585 |
|
|
$ |
1,294 |
|
Baron Small Cap Fund
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
September 30, 2023, the Fund’s portfolio turnover rate was 10.47% 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 80% of its net assets in equity
securities in the form of common stock of U.S. small-sized growth companies.
BAMCO, Inc. (“BAMCO” or the “Adviser”) defines small-sized companies as those,
at the time of purchase, with market capitalizations up to the largest market
cap stock in the Russell 2000 Growth Index at reconstitution, or companies with
market capitalizations up to $2.5 billion, whichever is larger. 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 market capitalizations at the time of the Fund’s
investment.
Principal Risks of Investing in the 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
Baron Small Cap Fund
adversely
impact issuers and markets worldwide. The active and expanding conflict in the
Middle East between Israel and Hamas presents considerable market risks. 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.
Small-Sized Companies. The Adviser
believes there is more potential for capital appreciation in small-sized
companies, but there also may be more risk. Securities of small-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‑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-sized companies rely
more on the skills of management and on their continued tenure. Investing in
small-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.
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.
Baron Small Cap 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 and 10 years
and since inception compare with those of two broad measures 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: |
06/30/20:
35.64%
|
Worst Quarter: |
03/31/20: (23.37)%
|
Average Annual Total Returns (for periods ended
12/31/23)
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 market indexes
over various periods ended December 31, 2023. This table shows how the Fund’s
performance compares to that of the Russell 2000® Growth Index, which measures
the performance of the small-cap growth segment of the U.S. equity universe, in
which the Fund invests, and the S&P 500 Index, a broad-based securities
index that reflects the overall U.S. equity market. 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’s shares in a tax-deferred account
(including a 401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Baron Small Cap Fund
Average
Annual Total Returns for the periods ended December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
SMALL CAP FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Inception date: 09-30-97) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
26.88% |
|
|
|
13.73% |
|
|
|
9.03% |
|
|
|
10.02% |
|
Return
after taxes on distributions |
|
|
25.92% |
|
|
|
11.61% |
|
|
|
6.57% |
|
|
|
8.80% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
16.51% |
|
|
|
10.90% |
|
|
|
6.73% |
|
|
|
8.54% |
|
Institutional Shares* (Inception date:
05-29-09) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
27.19% |
|
|
|
14.02% |
|
|
|
9.31% |
|
|
|
10.18% |
|
R6 Shares* (Inception date:
01-29-16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
27.20% |
|
|
|
14.03% |
|
|
|
9.31% |
|
|
|
10.18% |
|
Russell
2000® Growth Index
(reflects no deduction for fees, expenses or taxes) |
|
|
18.66% |
|
|
|
9.22% |
|
|
|
7.16% |
|
|
|
6.12% |
|
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
|
|
26.29% |
|
|
|
15.69% |
|
|
|
12.03% |
|
|
|
8.34% |
|
* |
|
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 January 29, 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. |
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Cliff Greenberg
has been the portfolio manager of the Fund since its inception on
September 30, 1997. Mr. Greenberg has worked at the Adviser as an
analyst since January of 1997.
Baron Small Cap 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) and $250,000 for non‑retirement
accounts. |
Baron Small Cap 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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 long-term 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 Small Cap 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 Opportunity Fund
Investment Goal
The
investment goal of Baron Opportunity Fund® (the “Fund”) is capital
appreciation through investments primarily in growth companies that benefit from
technology advances.
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 |
|
BARON OPPORTUNITY
FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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% |
|
|
|
0.07% |
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
OPPORTUNITY FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
134 |
|
|
$ |
418 |
|
|
$ |
723 |
|
|
$ |
1,590 |
|
Institutional
Shares |
|
$ |
108 |
|
|
$ |
337 |
|
|
$ |
585 |
|
|
$ |
1,294 |
|
R6
Shares |
|
$ |
109 |
|
|
$ |
340 |
|
|
$ |
590 |
|
|
$ |
1,306 |
|
Baron Opportunity Fund
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
September 30, 2023, the Fund’s portfolio turnover rate was 23.29% 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 primarily in equity securities in the
form of common stock of U.S. high growth businesses of any market capitalization
selected for their capital appreciation potential. BAMCO, Inc. (“BAMCO” or the
“Adviser”) may invest in companies in any sector or industry that it believes
will benefit from innovations and advances in technology. 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
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 active and expanding conflict in the
Middle East between Israel and Hamas presents considerable market risks. 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
Baron Opportunity Fund
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.
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.
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.
Baron Opportunity 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 and 10
years and since inception compare with those of two broad measures 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: |
06/30/20:
39.66% |
Worst Quarter: |
06/30/22: (27.02)% |
Average Annual Total Returns (for periods ended
12/31/23)
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 market indexes
over various periods ended December 31, 2023. This table shows how the Fund’s
performance compares to that of the Russell 3000® Growth Index, which measures
the performance of the broad growth segment of the U.S. equity universe, in
which the Fund invests, and the S&P 500 Index, a broad-based securities
index that reflects the overall U.S. equity market. 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’s shares in a tax-deferred account
(including a 401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Baron Opportunity Fund
Average
Annual Total Returns for the periods ended December 31,
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
OPPORTUNITY FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares
(Inception
date: 02-29-00) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
49.55% |
|
|
|
20.40% |
|
|
|
13.78% |
|
|
|
8.97% |
|
Return
after taxes on distributions |
|
|
49.55% |
|
|
|
18.94% |
|
|
|
11.87% |
|
|
|
8.08% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
29.34% |
|
|
|
16.39% |
|
|
|
10.75% |
|
|
|
7.44% |
|
Institutional
Shares*
(Inception
date: 05-29-09) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
49.98% |
|
|
|
20.71% |
|
|
|
14.08% |
|
|
|
9.14% |
|
R6
Shares*
(Inception
date: 08-31-16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
49.96% |
|
|
|
20.71% |
|
|
|
14.09% |
|
|
|
9.15% |
|
Russell
3000® Growth Index (reflects no deduction for fees, expenses or
taxes) |
|
|
41.21% |
|
|
|
18.85% |
|
|
|
14.33% |
|
|
|
6.75% |
|
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
|
|
26.29% |
|
|
|
15.69% |
|
|
|
12.03% |
|
|
|
7.40% |
|
* |
|
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. |
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Michael Lippert
has been the portfolio manager of the Fund since March 3, 2006.
Mr. Lippert has worked at the Adviser as an analyst since December of 2001.
Baron Opportunity 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) and $250,000 for non‑retirement
accounts. |
Baron Opportunity 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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 long-term 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 Opportunity 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 Fifth Avenue Growth
Fund
Investment Goal
The
investment goal of Baron Fifth Avenue Growth Fund® (the “Fund”) is capital
appreciation through investments primarily in securities of large-sized growth
companies.
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 |
|
|
|
Operating
Expenses |
|
|
|
Interest
Expense |
|
BARON FIFTH AVENUE
GROWTH FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
0.70% |
|
|
|
0.25% |
|
|
|
0.10% |
|
|
|
0.01% |
|
|
|
1.06% |
|
|
|
(0.05 |
)% |
|
|
1.01% |
|
Institutional
Shares |
|
|
0.70% |
|
|
|
0.00% |
|
|
|
0.07% |
|
|
|
0.01% |
|
|
|
0.78% |
|
|
|
(0.02 |
)% |
|
|
0.76% |
|
R6
Shares |
|
|
0.70% |
|
|
|
0.00% |
|
|
|
0.07% |
|
|
|
0.01% |
|
|
|
0.78% |
|
|
|
(0.02 |
)% |
|
|
0.76% |
|
1 |
|
BAMCO, Inc. (“BAMCO” or the “Adviser”)
has agreed that, pursuant to a contract with an 11-year term terminating
on August 29,
2034, 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 1.00% of
average daily net assets of Retail Shares, 0.75% of average daily net
assets of Institutional Shares and 0.75% 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.
Baron Fifth Avenue Growth
Fund
Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
FIFTH AVENUE GROWTH FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
103 |
|
|
$ |
322 |
|
|
$ |
558 |
|
|
$ |
1,236 |
|
Institutional
Shares |
|
$ |
78 |
|
|
$ |
243 |
|
|
$ |
422 |
|
|
$ |
942 |
|
R6
Shares |
|
$ |
78 |
|
|
$ |
243 |
|
|
$ |
422 |
|
|
$ |
942 |
|
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
September 30, 2023, the Fund’s portfolio turnover rate was 13.38% 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 primarily in equity securities in the
form of common stock of U.S. large-sized growth companies. The Adviser defines
large‑sized companies as those, at the time of purchase, with market
capitalizations no smaller than the top 85th percentile by total market
capitalization of the Russell 1000 Growth Index at June 30, or companies
with market capitalizations above $10 billion, whichever is smaller. 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
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 Fifth Avenue Growth
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 active and expanding conflict in the Middle East between Israel
and Hamas presents considerable market risks. 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.
Large-Cap Companies. Because the
Fund invests primarily in large-cap company securities, it may underperform
other funds during periods when the Fund’s securities are out of favor.
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.
Baron Fifth Avenue Growth
Fund
Consumer Discretionary Sector
Risk. 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.
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 and 10 years
and since inception compare with those of two broad measures 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: |
06/30/20:
37.82%
|
Worst Quarter: |
06/30/22: (30.60)%
|
Average Annual Total Returns (for periods ended
12/31/23)
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 market indexes
over various periods ended December 31, 2023. This table shows how the Fund’s
performance compares to that of the Russell 1000® Growth Index, which measures
the performance of the large-cap growth segment of the U.S. equity universe, in
which the Fund invests, and the S&P 500 Index, a broad-based securities
index that reflects the overall U.S. equity market. 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 Fifth Avenue Growth
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, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
FIFTH AVENUE GROWTH FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Inception date: 04-30-04) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
57.20% |
|
|
|
11.65% |
|
|
|
10.75% |
|
|
|
8.99% |
|
Return
after taxes on distributions |
|
|
57.20% |
|
|
|
11.32% |
|
|
|
10.59% |
|
|
|
8.74% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
33.86% |
|
|
|
9.32% |
|
|
|
8.95% |
|
|
|
7.70% |
|
Institutional Shares* (Inception date:
05-29-09) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
57.58% |
|
|
|
11.93% |
|
|
|
11.04% |
|
|
|
9.19% |
|
R6 Shares* (Inception date:
01-29-16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
57.64% |
|
|
|
11.92% |
|
|
|
11.04% |
|
|
|
9.19% |
|
Russell
1000® Growth Index
(reflects no deduction for fees, expenses or taxes) |
|
|
42.68% |
|
|
|
19.50% |
|
|
|
14.86% |
|
|
|
11.51% |
|
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
|
|
26.29% |
|
|
|
15.69% |
|
|
|
12.03% |
|
|
|
9.86% |
|
* |
|
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 January 29, 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. |
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Manager. Alex Umansky has
been the portfolio manager of the Fund since November 1, 2011.
Baron Fifth Avenue 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) and $250,000 for non‑retirement
accounts. |
Baron Fifth Avenue Growth
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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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 long-term 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 Fifth Avenue Growth
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 Discovery Fund
Investment Goal
The
investment goal of Baron Discovery Fund® (the “Fund”) is capital
appreciation through investments primarily in securities of small-sized growth
companies.
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 DISCOVERY
FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
|
1.00% |
|
|
|
0.25% |
|
|
|
0.08% |
|
|
|
1.33% |
|
Institutional
Shares |
|
|
1.00% |
|
|
|
0.00% |
|
|
|
0.06% |
|
|
|
1.06% |
|
R6
Shares |
|
|
1.00% |
|
|
|
0.00% |
|
|
|
0.06% |
|
|
|
1.06% |
|
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 actual costs may be higher or lower, based on these
assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR |
|
1 |
|
|
3 |
|
|
5 |
|
|
10 |
|
BARON
DISCOVERY FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Shares |
|
$ |
135 |
|
|
$ |
421 |
|
|
$ |
729 |
|
|
$ |
1,601 |
|
Institutional
Shares |
|
$ |
108 |
|
|
$ |
337 |
|
|
$ |
585 |
|
|
$ |
1,294 |
|
R6
Shares |
|
$ |
108 |
|
|
$ |
337 |
|
|
$ |
585 |
|
|
$ |
1,294 |
|
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 Discovery 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
September 30, 2023, the Fund’s portfolio turnover rate was 34.45% 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 U.S. small-sized growth companies. The
Adviser defines small-sized companies as those, at the time of purchase, with
market capitalizations up to the largest market cap stock in the Russell 2000
Growth Index at reconstitution, or companies with market capitalizations up to
$2.5 billion, whichever is larger. 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 market capitalizations
at the time of the Fund’s investment.
Principal Risks of Investing in the 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 active and expanding conflict in the
Middle East between Israel and Hamas presents considerable market risks. The
coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses
taken by many governments or voluntarily imposed by private parties, including
Baron Discovery Fund
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.
Small-Sized Companies. The Adviser
believes there is more potential for capital appreciation in small-sized
companies, but there also may be more risk. Securities of small-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-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-sized companies rely
more on the skills of management and on their continued tenure. Investing in
small-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.
Special Situations. The Funds may
invest in “special situations.” A special situation arises when, in the opinion
of the Adviser, the securities of a company will be recognized and appreciate in
value due to a specific anticipated development at that company. Such
developments might include a new product, a management change, an acquisition or
a technological advancement. The risk of investing in special situations is that
the anticipated development does not occur or its impact is not what the Adviser
expected.
Health Care Sector Risk. 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
Baron Discovery Fund
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.
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, and
10 years and since inception compare with those of two broad measures 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: |
06/30/20:
39.02%
|
Worst Quarter: |
12/31/18: (23.39)% |
Average Annual Total Returns (for periods ended
12/31/23)
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 market indexes
over various periods ended December 31, 2023. This table shows how
the Fund’s performance compares to that of the Russell 2000® Growth Index, which
measures the performance of the small-cap growth segment of the U.S. equity
universe, in which the
Baron Discovery Fund
Fund invests, and the S&P
500 Index, a broad-based securities index that reflects the overall U.S. equity
market. 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’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, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
year |
|
|
5 years |
|
|
10 years |
|
|
Since Inception |
|
BARON
DISCOVERY FUND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Shares (Inception date:
09-30-13) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
22.28% |
|
|
|
11.65% |
|
|
|
10.74% |
|
|
|
12.14% |
|
Return
after taxes on distributions |
|
|
22.28% |
|
|
|
11.19% |
|
|
|
10.26% |
|
|
|
11.66% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
13.19% |
|
|
|
9.26% |
|
|
|
8.81% |
|
|
|
10.08% |
|
Institutional Shares (Inception date:
09-30-13) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
22.58% |
|
|
|
11.94% |
|
|
|
11.02% |
|
|
|
12.42% |
|
R6 Shares* (Inception date:
08-31-16) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return
before taxes |
|
|
22.58% |
|
|
|
11.94% |
|
|
|
11.02% |
|
|
|
12.42% |
|
Russell
2000® Growth Index
(reflects no deduction for fees, expenses or taxes) |
|
|
18.66% |
|
|
|
9.22% |
|
|
|
7.16% |
|
|
|
7.80% |
|
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
|
|
26.29% |
|
|
|
15.69% |
|
|
|
12.03% |
|
|
|
12.82% |
|
* |
|
Performance for the R6 Shares prior to
August 31, 2016 is based on the performance of the Institutional
Shares. |
Management
Investment Adviser. BAMCO is the
investment adviser of the Fund.
Portfolio Managers. Laird Bieger and
Randolph Gwirtzman have been the co-managers of Baron Discovery Fund since its
inception on September 30, 2013. Mr. Bieger and Mr. Gwirtzman
joined the Adviser as research analysts in May of 2000 and September of 2002,
respectively.
Baron Discovery 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) and $250,000 for non‑retirement
accounts. |
Baron Discovery 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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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 long-term 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 Discovery 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 Durable Advantage
Fund
Investment Goal
The
investment goal of the Baron Durable Advantage Fund® (the “Fund”) is capital
appreciation through investments primarily in securities of large-sized
companies.
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 Expenses1 |
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Total Annual Fund Operating Expenses |
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Expense Reimbursements |
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Total Annual Fund Operating Expenses After Expense Reimbursements1 |
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BARON
DURABLE ADVANTAGE FUND |
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Retail
Shares |
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0.65% |
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|
0.25% |
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|
0.50% |
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1.40% |
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(0.45 |
)% |
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0.95% |
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Institutional
Shares |
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0.65% |
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|
0.00% |
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|
0.35% |
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|
1.00% |
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(0.30 |
)% |
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|
0.70% |
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R6
Shares |
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0.65% |
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|
0.00% |
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0.36% |
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|
1.01% |
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(0.31 |
)% |
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0.70% |
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1 |
|
BAMCO, Inc. (“BAMCO” or the “Adviser”)
has agreed that, pursuant to a contract with an 11-year term terminating
on August 29,
2034, 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 0.95% of
average daily net assets of Retail Shares, 0.70% of average daily net
assets of Institutional Shares and 0.70% 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 Durable Advantage
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 |
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1 |
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|
3 |
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|
5 |
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|
10 |
|
BARON
DURABLE ADVANTAGE FUND |
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|
Retail
Shares |
|
$ |
97 |
|
|
$ |
303 |
|
|
$ |
525 |
|
|
$ |
1,166 |
|
Institutional
Shares |
|
$ |
72 |
|
|
$ |
224 |
|
|
$ |
390 |
|
|
$ |
871 |
|
R6
Shares |
|
$ |
72 |
|
|
$ |
224 |
|
|
$ |
390 |
|
|
$ |
871 |
|
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
September 30, 2023, the Fund’s portfolio turnover rate was 1.93% 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 primarily in equity securities in the
form of common stock of U.S. large‑sized companies. The Adviser defines
large‑sized companies as those, at the time of purchase, with market
capitalizations no smaller than the top 90th percentile by total market
capitalization of the S&P 500 Index at June 30, or companies with
market capitalizations above $10 billion, whichever is smaller. The Adviser
seeks to invest primarily in what it believes are unique, well-managed,
competitively advantaged businesses that generate significant excess free cash
flow that is consistently returned to shareholders in the form of stock buybacks
and/or dividends.
Principal Risks of Investing in the 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
Baron Durable Advantage
Fund
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 active and expanding conflict in the Middle East between Israel
and Hamas presents considerable market risks. 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.
Large‑Cap Companies. Because the
Fund invests primarily in large‑cap company securities, it may underperform
other funds during periods when the Fund’s securities are out of favor.
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 and 5 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 Durable Advantage
Fund
Year by Year Total Return (%) as of
December 31 of Each Year (Retail Shares)
Best Quarter: |
06/30/20:
22.11%
|
Worst Quarter: |
03/31/20: (16.02)%
|
Average Annual Total Returns (for periods ended
12/31/23)
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 a broad-based
market index over various periods ended December 31, 2023. This table shows
how the Fund’s performance compares to that of the S&P 500 Index, a
broad-based securities index that reflects the overall U.S. equity market in
which the Fund invests. 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’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, 2023
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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
DURABLE ADVANTAGE FUND |
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Retail Shares (Inception date:
12-29-17) |
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Return
before taxes |
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45.11% |
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19.39% |
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|
N/A |
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14.42% |
|
Return
after taxes on distributions |
|
|
45.11% |
|
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|
19.36% |
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|
N/A |
|
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|
14.39% |
|
Return
after taxes on distributions and sale of Fund shares |
|
|
26.71% |
|
|
|
15.84% |
|
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|
N/A |
|
|
|
11.75% |
|
Baron Durable Advantage
Fund
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1 year |
|
|
5 years |
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|
10 years |
|
|
Since Inception |
|
Institutional Shares (Inception date:
12-29-17) |
|
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|
Return
before taxes |
|
|
45.51% |
|
|
|
19.68% |
|
|
|
N/A |
|
|
|
14.70% |
|
R6 Shares (Inception date:
12-29-17) |
|
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|
Return
before taxes |
|
|
45.51% |
|
|
|
19.68% |
|
|
|
N/A |
|
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|
14.70% |
|
S&P
500 Index (reflects no deduction for fees, expenses or taxes) |
|
|
26.29% |
|
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|
15.69% |
|
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|
N/A |
|
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|
12.07% |
|
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 December 29, 2017.
Mr. Umansky has worked at the Adviser as a portfolio manager since November
of 2011.
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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) and $250,000 for non‑retirement
accounts. |
Baron Durable Advantage
Fund
|
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|
Minimum
Initial Investment |
|
Minimum Subsequent Investment |
|
Maximum Subsequent Investment |
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|
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 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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
Funds®
website purchases |
|
You may not make an initial purchase through
the Baron Funds®
website. |
|
$10 |
|
$7,000 for retirement accounts ($8,000 for
individuals 50 or older) 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; |
Baron Durable Advantage
Fund
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 long-term 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.
|
|
|
Information about the Funds |
|
Baron Funds® |
This
Prospectus is for Baron Investment Funds Trust, which currently has seven
series, 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. If you are interested in 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 WealthBuilder
Fund, Baron Health Care Fund, Baron FinTech Fund, Baron New Asia Fund or
Baron Technology Fund which are series of
Baron Select Funds, please visit www.BaronFunds.com or contact us at
1‑800‑99BARON (1-800-992-2766).
Investment Goals
Baron
Asset Fund |
capital appreciation
through long-term investments primarily in securities of mid-sized
companies with undervalued assets or favorable growth
prospects. |
Baron
Growth Fund |
capital appreciation
through long-term investments primarily in securities of small-sized
growth companies. |
Baron
Small Cap Fund |
capital appreciation
through investments primarily in securities of small-sized growth
companies. |
Baron
Opportunity Fund |
capital appreciation
through investments primarily in growth companies that benefit from
technology advances. |
Baron
Fifth Avenue Growth Fund |
capital appreciation
through investments primarily in securities of large-sized growth
companies. |
Baron
Discovery Fund |
capital appreciation
through investments primarily in securities of small-sized growth
companies. |
Baron
Durable Advantage Fund |
capital appreciation
through investments primarily in securities of large-sized
companies. |
Additional
Investment Strategies
The
following is a description of additional investment strategies of Baron Asset Fund, Baron Growth Fund, Baron Small Cap
Fund, Baron Opportunity Fund,
|
|
|
Information about the Funds |
|
Baron Funds® |
Baron Fifth
Avenue Growth Fund, Baron Discovery
Fund and Baron Durable Advantage
Fund (each, a “Fund” and collectively, the “Funds”).
The
Funds may invest without limitation in the securities of non-U.S. issuers in
U.S. denominated form known as American Depository Receipts. They may also
invest up to 10% of the respective total assets of Baron Asset Fund, Baron Growth Fund and Baron Small Cap Fund, and up to 25% of the
respective total assets of Baron Opportunity
Fund, Baron Fifth Avenue Growth
Fund, Baron Discovery Fund and
Baron Durable Advantage Fund 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. These securities
may have exposure to developed countries and developing countries, which include
countries in the MSCI Emerging Markets Index, countries in the MSCI Frontier
Markets 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 MSCI Emerging
Markets Index and MSCI Frontier Markets Index.
Except
for Baron Asset Fund, 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 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.
Baron Asset Fund may invest up to 10% of its
net assets, and Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund and Baron Durable Advantage Fund 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 the portfolio, illiquid
securities exceed 10% or 15% of net assets (as applicable), a Fund may not
acquire any additional illiquid securities and the Adviser will take such steps
as it considers appropriate to reduce
|
|
|
Information about the Funds |
|
Baron Funds® |
the
percentage within a reasonable period of time. 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. Except for Baron Small Cap
Fund, which may invest up to 20% of its total assets, the Funds may
invest up to 35% of their 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 Asset
Fund may borrow up to 5% of its net assets for extraordinary or emergency
temporary investment purposes or to meet redemption requests that might
otherwise require an untimely sale of portfolio securities. Baron Growth Fund, Baron Small Cap Fund and Baron Opportunity Fund may borrow up to 30% of
the value of their respective total assets, including the amount borrowed, as of
the time the borrowing is made, for temporary, emergency or other purposes.
Baron Fifth Avenue Growth Fund, Baron Discovery
Fund and Baron Durable Advantage
Fund may borrow money to the extent permitted by law (which currently
requires asset coverage of 300% immediately after such borrowing).
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
|
|
|
Information about the Funds |
|
Baron Funds® |
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:
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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. In building its portfolios, the Adviser does not use a
market benchmark, nor does it 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.
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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 83-85 of this
Prospectus).
Additional Investment
Risks
Consumer Discretionary Sector
Risk. 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.
Credit and Interest Rate Risk. 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.
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Currency Risk. 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 to effectively hedge the currency risks of many developing
countries.
Cybersecurity Risk. 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 values per share (“NAVs”), 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
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.
Developing Countries. The Funds
invest in developing countries, which include countries in the MSCI Emerging
Markets Index, countries in the MSCI Frontier Markets 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 MSCI Emerging Markets Index and MSCI Frontier
Markets Index. Investments in developing countries are subject to all of
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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 “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
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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.
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 active and expanding conflict in the Middle East between Israel
and Hamas presents considerable market risks. 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
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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 Risk. 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 may involve more risk. Baron Asset
Fund may invest up to 10% of its net assets, and Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund and Baron Durable Advantage Fund 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 the portfolio, illiquid
securities exceed 10% or 15% of net assets (as applicable), 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 period
of time. 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.
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 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.
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Large-Cap Companies. Because a Fund
may invest primarily in large-cap company securities, that Fund may underperform
other funds during periods when their securities are out of favor.
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-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.
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.
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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 over-the-counter
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 87-89 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 87-89 of this
Prospectus, and the “Taxation of the Funds” section on pages 41-48 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.
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
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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. For more information, please see the “How to
Purchase Shares” section on pages 75-77 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
Trust’s 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 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 WealthBuilder Fund, Baron Health
Care Fund, Baron FinTech Fund, Baron New
Asia Fund and Baron Technology
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”).
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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. Baron
and Neal Rosenberg have been the co-managers of Baron Growth Fund since August 28, 2018. Mr.
Baron has been the portfolio manager of Baron Growth Fund since its inception on
December 31, 1994. From January 27, 2017 to August 28, 2018,
Mr. Baron served as the Lead Portfolio Manager of the Fund and
Mr. Rosenberg served as the Assistant Portfolio Manager of the Fund. In
addition, Mr. Baron has managed three registered mutual funds, Baron
Partners Fund since its inception as a limited partnership on January 31,
1992, Baron Focused Growth Fund since its inception as a limited partnership on
May 31, 1996, and Baron WealthBuilder Fund since its inception on
December 29, 2017. He has managed money for others since 1975.
Mr. Baron is also a senior member of the Adviser’s research team. The
Funds’ SAI provides additional information about Mr. Baron’s compensation,
other accounts managed by Mr. Baron and his ownership in shares of the
Funds.
Mr. Rosenberg
has worked at the Adviser as an analyst since May of 2006. From 2004 to 2006,
Mr. Rosenberg worked at JPMorgan Securities as an equity research analyst.
From 2003 to 2004, Mr. Rosenberg worked at Merrill Lynch & Co. as
an associate in the Mergers and Acquisitions group.
Andrew
Peck has been the sole portfolio manager of Baron Asset Fund since January 23, 2008.
He had been a co-portfolio manager of the Fund with Mr. Baron since
July 23, 2003. Mr. Peck is also the Co-Chief Investment Officer of the
Adviser. Mr. Peck has worked at the Adviser as an analyst since February of
1998. Before that, he was an analyst at a large brokerage firm.
Cliff
Greenberg has been the portfolio manager of Baron Small Cap Fund since its inception on
September 30, 1997. Mr. Greenberg is also the Co-Chief Investment Officer
of the Adviser. Mr. Greenberg joined the Adviser in January of 1997. He was
a general partner and portfolio manager at HPB Associates, L.P., from January of
1990 until he joined the Adviser.
Michael
Lippert has been the portfolio manager of Baron
Opportunity Fund since March 3, 2006. In addition, he has been co-manager
of Baron Technology Fund, a series of Baron Select Funds, since its inception on
December 31, 2021. Mr. Lippert has worked at the Adviser as an analyst
since December of 2001. From April of 2001 to December of 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.
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Alex
Umansky has been the portfolio manager of Baron
Fifth Avenue Growth Fund since November 1, 2011 and Baron Durable Advantage Fund since its
inception on December 29, 2017. In addition, Mr. Umansky has managed the
Baron Global Advantage Fund since its inception on April 30, 2012. 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 Fund from 2010 to 2011. Prior to
that, Mr. Umansky was the lead manager of the Morgan Stanley Institutional
Technology Strategy from 1998 to 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.
Laird
Bieger and Randolph Gwirtzman have been the co-managers of Baron Discovery Fund since its inception on
September 30, 2013. In this role, they are primarily responsible for
stock selection, buy and sell decisions, and the day to day management of the
Fund. Mr. Bieger and Mr. Gwirtzman joined the Adviser in May of
2000 and September of 2002, respectively. Prior to joining the Adviser,
Mr. Bieger worked as a research analyst at Water Street Capital from 1999
to 2000. Prior to that, Mr. Bieger worked at Ford Motor Company as a
marketing trainee from 1992 to 1994, and as a marketing manager from 1994 to
1997. Prior to joining the Adviser, Mr. Gwirtzman was a research analyst at
three firms from 1997 to 2002; first at Tyndall Partners, then Goldman Sachs
Asset Management, and finally at ING Furman Selz. Prior to that,
Mr. Gwirtzman worked at Salomon Green & Ostrow as a bankruptcy
attorney from 1992 to 1997.
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 each
Fund equal to 1% per annum of the average daily NAV of Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron
Opportunity Fund and Baron Discovery
Fund; 0.70% per annum of the daily NAV of Baron Fifth Avenue Growth Fund; and 0.65% per
annum of the daily NAV of Baron Durable
Advantage Fund.
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Baron Funds® |
The
Adviser is contractually obligated to reimburse certain expenses of the
following 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
Asset Fund |
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N/A |
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N/A |
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N/A |
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Baron
Growth Fund |
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N/A |
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N/A |
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N/A |
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Baron
Small Cap Fund |
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N/A |
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N/A |
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N/A |
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Baron
Opportunity Fund |
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1.50% |
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1.25% |
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1.24% |
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Baron
Fifth Avenue Growth Fund |
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1.00% |
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0.75% |
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0.75% |
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Baron
Discovery Fund |
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1.35% |
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1.10% |
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1.09% |
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Baron
Durable Advantage Fund |
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0.95% |
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0.70% |
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0.70% |
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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’ Annual Financial
Report to the Shareholders for the fiscal year ended September 30,
2023.
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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 Investment Company Act of 1940, as amended (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 and other debt instruments having 60 days or less
remaining until maturity are valued at amortized cost. Debt instruments
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Baron Funds® |
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 minimum initial
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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 79 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’ minimum. 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
86-87 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 83-85 of this Prospectus).
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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 85 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 86-87 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
(1-800-992-2766)), 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 NAV 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
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Baron Funds® |
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 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 82-83 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.
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Baron Funds® |
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
Information about the Baron Funds® Website” on pages 86-87 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
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Baron Funds® |
form
of all required documentation by the Transfer Agent, have been satisfied. A
redemption of Fund shares may generate a tax liability.
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 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 87‑89 of this Prospectus and the “Taxation of the Funds” section on
pages 41-48 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 58-61 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
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Baron Funds® |
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.
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 the financial intermediary from investing in the
Funds on behalf of any of its clients.
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Baron Funds® |
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 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 86-87 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 NAV 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
83-85 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
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Baron Funds® |
activity
will be completely secure. There may also be delays, malfunctions or other
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
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 long-term 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
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Baron Funds® |
therefore
be subject to U.S. federal income tax at the 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 you do not instruct the Fund not to reinvest distributions 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 long-term
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 October or November 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
and interest 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 withholding and income taxes paid by a Fund, subject to
generally applicable limitations.
A
Fund must withhold 28% 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.
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
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Baron Funds® |
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 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.
Cost Basis Information
A
Fund is required to report your cost basis, gain or loss, and holding period 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 cost”
method as its default method for reporting the cost basis of covered shares.
Each Fund will use this method for purposes of reporting your cost 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.
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 in 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.
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Baron Funds® |
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.
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 September 30, 2023, 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 September 30, 2023, 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 (1-800-992-2766) or by emailing
[email protected]. The Annual
Financial Report is also incorporated by reference in the SAI. The SAI and the
Financial Reports can be found at www.BaronFunds.com.
BARON ASSET FUND
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RETAIL SHARES |
|
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|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
77.43 |
|
|
$ |
120.59 |
|
|
$ |
99.64 |
|
|
$ |
82.28 |
|
|
$ |
81.43 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.72 |
) |
|
|
(0.90 |
) |
|
|
(1.16 |
) |
|
|
(0.72 |
) |
|
|
(0.56 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
13.73 |
|
|
|
(33.27 |
) |
|
|
25.50 |
|
|
|
19.58 |
|
|
|
6.17 |
|
Total
from investment operations |
|
|
13.01 |
|
|
|
(34.17 |
) |
|
|
24.34 |
|
|
|
18.86 |
|
|
|
5.61 |
|
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 |
|
|
|
(8.99 |
) |
|
|
(3.39 |
) |
|
|
(1.50 |
) |
|
|
(4.76 |
) |
Total
distributions |
|
|
0.00 |
|
|
|
(8.99 |
) |
|
|
(3.39 |
) |
|
|
(1.50 |
) |
|
|
(4.76 |
) |
Net
asset value, end of year |
|
$ |
90.44 |
|
|
$ |
77.43 |
|
|
$ |
120.59 |
|
|
$ |
99.64 |
|
|
$ |
82.28 |
|
TOTAL RETURN(2) |
|
|
16.80 |
% |
|
|
(30.79 |
)% |
|
|
24.96 |
% |
|
|
23.22 |
% |
|
|
7.82 |
% |
RATIOS/SUPPLEMENT
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
1,987.1 |
|
|
$ |
1,824.8 |
|
|
$ |
2,871.7 |
|
|
$ |
2,498.6 |
|
|
$ |
2,242.0 |
|
Ratio
of total expenses to average net assets |
|
|
1.30 |
% |
|
|
1.29 |
% |
|
|
1.29 |
%(3) |
|
|
1.31 |
% |
|
|
1.30 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.80 |
)% |
|
|
(0.91 |
)% |
|
|
(1.02 |
)% |
|
|
(0.82 |
)% |
|
|
(0.73 |
)% |
Portfolio
turnover rate |
|
|
5.48 |
% |
|
|
4.58 |
% |
|
|
9.54 |
% |
|
|
9.28 |
% |
|
|
11.83 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
Interest
expense rounds to less than 0.01%. |
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Baron Funds® |
BARON ASSET FUND
(CONTINUED)
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INSTITUTIONAL SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
81.71 |
|
|
$ |
126.47 |
|
|
$ |
104.08 |
|
|
$ |
85.67 |
|
|
$ |
84.36 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.52 |
) |
|
|
(0.68 |
) |
|
|
(0.91 |
) |
|
|
(0.52 |
) |
|
|
(0.38 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
14.49 |
|
|
|
(35.09 |
) |
|
|
26.69 |
|
|
|
20.43 |
|
|
|
6.45 |
|
Total
from investment operations |
|
|
13.97 |
|
|
|
(35.77 |
) |
|
|
25.78 |
|
|
|
19.91 |
|
|
|
6.07 |
|
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 |
|
|
|
(8.99 |
) |
|
|
(3.39 |
) |
|
|
(1.50 |
) |
|
|
(4.76 |
) |
Total
distributions |
|
|
0.00 |
|
|
|
(8.99 |
) |
|
|
(3.39 |
) |
|
|
(1.50 |
) |
|
|
(4.76 |
) |
Net
asset value, end of year |
|
$ |
95.68 |
|
|
$ |
81.71 |
|
|
$ |
126.47 |
|
|
$ |
104.08 |
|
|
$ |
85.67 |
|
TOTAL RETURN(2) |
|
|
17.10 |
% |
|
|
(30.61 |
)% |
|
|
25.29 |
% |
|
|
23.53 |
% |
|
|
8.11 |
% |
RATIOS/SUPPLEMENT
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
2,236.6 |
|
|
$ |
1,968.9 |
|
|
$ |
3,108.2 |
|
|
$ |
2,505.4 |
|
|
$ |
1,979.7 |
|
Ratio
of total expenses to average net assets |
|
|
1.05 |
% |
|
|
1.04 |
% |
|
|
1.03 |
%(3) |
|
|
1.05 |
% |
|
|
1.05 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.54 |
)% |
|
|
(0.65 |
)% |
|
|
(0.76 |
)% |
|
|
(0.57 |
)% |
|
|
(0.48 |
)% |
Portfolio
turnover rate |
|
|
5.48 |
% |
|
|
4.58 |
% |
|
|
9.54 |
% |
|
|
9.28 |
% |
|
|
11.83 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
Interest
expense rounds to less than 0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON ASSET FUND
(CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R6 SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
81.70 |
|
|
$ |
126.45 |
|
|
$ |
104.07 |
|
|
$ |
85.65 |
|
|
$ |
84.35 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.52 |
) |
|
|
(0.67 |
) |
|
|
(0.91 |
) |
|
|
(0.52 |
) |
|
|
(0.38 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
14.47 |
|
|
|
(35.09 |
) |
|
|
26.68 |
|
|
|
20.44 |
|
|
|
6.44 |
|
Total
from investment operations |
|
|
13.95 |
|
|
|
(35.76 |
) |
|
|
25.77 |
|
|
|
19.92 |
|
|
|
6.06 |
|
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 |
|
|
|
(8.99 |
) |
|
|
(3.39 |
) |
|
|
(1.50 |
) |
|
|
(4.76 |
) |
Total
distributions |
|
|
0.00 |
|
|
|
(8.99 |
) |
|
|
(3.39 |
) |
|
|
(1.50 |
) |
|
|
(4.76 |
) |
Net
asset value, end of year |
|
$ |
95.65 |
|
|
$ |
81.70 |
|
|
$ |
126.45 |
|
|
$ |
104.07 |
|
|
$ |
85.65 |
|
TOTAL RETURN(2) |
|
|
17.07 |
% |
|
|
(30.61 |
)% |
|
|
25.28 |
% |
|
|
23.55 |
% |
|
|
8.09 |
% |
RATIOS/SUPPLEMENT
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
146.7 |
|
|
$ |
132.5 |
|
|
$ |
185.8 |
|
|
$ |
147.3 |
|
|
$ |
109.0 |
|
Ratio
of total expenses to average net assets |
|
|
1.05 |
% |
|
|
1.04 |
% |
|
|
1.04 |
%(3) |
|
|
1.05 |
% |
|
|
1.05 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.55 |
)% |
|
|
(0.65 |
)% |
|
|
(0.76 |
)% |
|
|
(0.57 |
)% |
|
|
(0.47 |
)% |
Portfolio
turnover rate |
|
|
5.48 |
% |
|
|
4.58 |
% |
|
|
9.54 |
% |
|
|
9.28 |
% |
|
|
11.83 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
Interest
expense rounds to less than 0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON GROWTH FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAIL SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
80.38 |
|
|
$ |
117.64 |
|
|
$ |
90.65 |
|
|
$ |
78.95 |
|
|
$ |
80.68 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.22 |
) |
|
|
(0.35 |
) |
|
|
(0.81 |
) |
|
|
(0.35 |
) |
|
|
(0.16 |
) |
Net
realized and unrealized gain (loss) |
|
|
15.52 |
|
|
|
(27.94 |
) |
|
|
32.65 |
|
|
|
15.10 |
|
|
|
3.56 |
|
Total
from investment operations |
|
|
15.30 |
|
|
|
(28.29 |
) |
|
|
31.84 |
|
|
|
14.75 |
|
|
|
3.40 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(5.13 |
) |
|
|
(8.97 |
) |
|
|
(4.85 |
) |
|
|
(3.05 |
) |
|
|
(5.13 |
) |
Total
distributions |
|
|
(5.13 |
) |
|
|
(8.97 |
) |
|
|
(4.85 |
) |
|
|
(3.05 |
) |
|
|
(5.13 |
) |
Net
asset value, end of year |
|
$ |
90.55 |
|
|
$ |
80.38 |
|
|
$ |
117.64 |
|
|
$ |
90.65 |
|
|
$ |
78.95 |
|
TOTAL RETURN(2) |
|
|
19.17 |
% |
|
|
(26.31 |
)% |
|
|
36.19 |
%(4) |
|
|
19.08 |
% |
|
|
5.09 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
2,211.7 |
|
|
$ |
2,015.6 |
|
|
$ |
3,041.4 |
|
|
$ |
2,535.3 |
|
|
$ |
2,507.0 |
|
Ratio
of total expenses to average net assets |
|
|
1.30 |
%(3) |
|
|
1.30 |
%(3) |
|
|
1.29 |
%(5) |
|
|
1.30 |
%(5) |
|
|
1.29 |
%(5) |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.24 |
)% |
|
|
(0.36 |
)% |
|
|
(0.75 |
)% |
|
|
(0.44 |
)% |
|
|
(0.21 |
)% |
Portfolio
turnover rate |
|
|
2.11 |
% |
|
|
0.44 |
% |
|
|
1.37 |
% |
|
|
1.63 |
% |
|
|
1.93 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect investment of all dividends and distributions, if
any. |
(3) |
|
Includes
interest expense of 0.01%. |
(4) |
|
The
Adviser made a voluntary payment to the Fund in the amount of $739,525 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
0.01%. |
(5) |
|
Includes
interest expense of less than 0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON GROWTH FUND
(CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
84.34 |
|
|
$ |
122.73 |
|
|
$ |
94.15 |
|
|
$ |
81.69 |
|
|
$ |
83.09 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
0.01 |
|
|
|
(0.10 |
) |
|
|
(0.56 |
) |
|
|
(0.16 |
) |
|
|
0.03 |
|
Net
realized and unrealized gain (loss) |
|
|
16.30 |
|
|
|
(29.32 |
) |
|
|
33.99 |
|
|
|
15.67 |
|
|
|
3.70 |
|
Total
from investment operations |
|
|
16.31 |
|
|
|
(29.42 |
) |
|
|
33.43 |
|
|
|
15.51 |
|
|
|
3.73 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(5.13 |
) |
|
|
(8.97 |
) |
|
|
(4.85 |
) |
|
|
(3.05 |
) |
|
|
(5.13 |
) |
Total
distributions |
|
|
(5.13 |
) |
|
|
(8.97 |
) |
|
|
(4.85 |
) |
|
|
(3.05 |
) |
|
|
(5.13 |
) |
Net
asset value, end of year |
|
$ |
95.52 |
|
|
$ |
84.34 |
|
|
$ |
122.73 |
|
|
$ |
94.15 |
|
|
$ |
81.69 |
|
TOTAL RETURN(2) |
|
|
19.48 |
% |
|
|
(26.12 |
)% |
|
|
36.55 |
%(4) |
|
|
19.38 |
% |
|
|
5.36 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
5,007.2 |
|
|
$ |
4,073.5 |
|
|
$ |
5,934.8 |
|
|
$ |
4,608.4 |
|
|
$ |
4,150.9 |
|
Ratio
of total expenses to average net assets |
|
|
1.05 |
%(3) |
|
|
1.04 |
%(3) |
|
|
1.03 |
%(5) |
|
|
1.04 |
%(5) |
|
|
1.04 |
%(5) |
Ratio
of net investment income (loss) to average net assets |
|
|
0.01 |
% |
|
|
(0.10 |
)% |
|
|
(0.50 |
)% |
|
|
(0.20 |
)% |
|
|
0.03 |
% |
Portfolio
turnover rate |
|
|
2.11 |
% |
|
|
0.44 |
% |
|
|
1.37 |
% |
|
|
1.63 |
% |
|
|
1.93 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect investment of all dividends and distributions, if
any. |
(3) |
|
Includes
interest expense of 0.01%. |
(4) |
|
The
Adviser made a voluntary payment to the Fund in the amount of $739,525 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
0.01%. |
(5) |
|
Includes
interest expense of less than 0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON GROWTH FUND
(CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R6 SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
84.35 |
|
|
$ |
122.75 |
|
|
$ |
94.16 |
|
|
$ |
81.70 |
|
|
$ |
83.10 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
0.01 |
|
|
|
(0.11 |
) |
|
|
(0.56 |
) |
|
|
(0.17 |
) |
|
|
0.00 |
(6) |
Net
realized and unrealized gain (loss) |
|
|
16.30 |
|
|
|
(29.32 |
) |
|
|
34.00 |
|
|
|
15.68 |
|
|
|
3.73 |
|
Total
from investment operations |
|
|
16.31 |
|
|
|
(29.43 |
) |
|
|
33.44 |
|
|
|
15.51 |
|
|
|
3.73 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(5.13 |
) |
|
|
(8.97 |
) |
|
|
(4.85 |
) |
|
|
(3.05 |
) |
|
|
(5.13 |
) |
Total
distributions |
|
|
(5.13 |
) |
|
|
(8.97 |
) |
|
|
(4.85 |
) |
|
|
(3.05 |
) |
|
|
(5.13 |
) |
Net
asset value, end of year |
|
$ |
95.53 |
|
|
$ |
84.35 |
|
|
$ |
122.75 |
|
|
$ |
94.16 |
|
|
$ |
81.70 |
|
TOTAL RETURN(2) |
|
|
19.48 |
% |
|
|
(26.13 |
)% |
|
|
36.56 |
%(4) |
|
|
19.38 |
% |
|
|
5.36 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
225.7 |
|
|
$ |
169.1 |
|
|
$ |
225.8 |
|
|
$ |
167.8 |
|
|
$ |
131.6 |
|
Ratio
of total expenses to average net assets |
|
|
1.05 |
%(3) |
|
|
1.04 |
%(3) |
|
|
1.03 |
%(5) |
|
|
1.04 |
%(5) |
|
|
1.04 |
%(5) |
Ratio
of net investment income (loss) to average net assets |
|
|
0.01 |
% |
|
|
(0.10 |
)% |
|
|
(0.50 |
)% |
|
|
(0.20 |
)% |
|
|
0.00 |
%(7) |
Portfolio
turnover rate |
|
|
2.11 |
% |
|
|
0.44 |
% |
|
|
1.37 |
% |
|
|
1.63 |
% |
|
|
1.93 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect investment of all dividends and distributions, if
any. |
(3) |
|
Includes
interest expense of 0.01%. |
(4) |
|
The
Adviser made a voluntary payment to the Fund in the amount of $739,525 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
0.01%. |
(5) |
|
Includes
interest expense of less than 0.01%. |
(6) |
|
Less
than $0.01 per share. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON SMALL CAP FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAIL SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
24.98 |
|
|
$ |
40.67 |
|
|
$ |
35.06 |
|
|
$ |
29.44 |
|
|
$ |
33.68 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.15 |
) |
|
|
(0.23 |
) |
|
|
(0.16 |
) |
|
|
(0.29 |
) |
|
|
(0.27 |
) |
Net
realized and unrealized gain (loss) |
|
|
4.38 |
|
|
|
(10.74 |
) |
|
|
9.89 |
|
|
|
8.73 |
|
|
|
(1.36 |
) |
Total
from investment operations |
|
|
4.23 |
|
|
|
(10.97 |
) |
|
|
9.73 |
|
|
|
8.44 |
|
|
|
(1.63 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(1.45 |
) |
|
|
(4.72 |
) |
|
|
(4.12 |
) |
|
|
(2.82 |
) |
|
|
(2.61 |
) |
Total
distributions |
|
|
(1.45 |
) |
|
|
(4.72 |
) |
|
|
(4.12 |
) |
|
|
(2.82 |
) |
|
|
(2.61 |
) |
Net
asset value, end of year |
|
$ |
27.76 |
|
|
$ |
24.98 |
|
|
$ |
40.67 |
|
|
$ |
35.06 |
|
|
$ |
29.44 |
|
TOTAL RETURN(2) |
|
|
17.42 |
%(3) |
|
|
(30.93 |
)% |
|
|
29.77 |
% |
|
|
30.60 |
% |
|
|
(4.17 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
1,187.8 |
|
|
$ |
1,135.1 |
|
|
$ |
1,829.5 |
|
|
$ |
1,511.3 |
|
|
$ |
1,451.9 |
|
Ratio
of total expenses to average net assets |
|
|
1.31 |
% |
|
|
1.30 |
% |
|
|
1.29 |
% |
|
|
1.31 |
% |
|
|
1.31 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.56 |
)% |
|
|
(0.72 |
)% |
|
|
(0.40 |
)% |
|
|
(0.98 |
)% |
|
|
(0.95 |
)% |
Portfolio
turnover rate |
|
|
10.47 |
% |
|
|
16.83 |
% |
|
|
15.70 |
% |
|
|
16.93 |
% |
|
|
13.44 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
The
Adviser made a voluntary payment to the Fund in the amount of $573 to
compensate the Fund for a loss incurred due to a trading error. The impact
of this payment increased the Fund’s total return by less than
0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON SMALL CAP FUND
(CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
26.74 |
|
|
$ |
43.12 |
|
|
$ |
36.86 |
|
|
$ |
30.74 |
|
|
$ |
34.95 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.09 |
) |
|
|
(0.15 |
) |
|
|
(0.06 |
) |
|
|
(0.23 |
) |
|
|
(0.21 |
) |
Net
realized and unrealized gain (loss) |
|
|
4.70 |
|
|
|
(11.51 |
) |
|
|
10.44 |
|
|
|
9.17 |
|
|
|
(1.39 |
) |
Total
from investment operations |
|
|
4.61 |
|
|
|
(11.66 |
) |
|
|
10.38 |
|
|
|
8.94 |
|
|
|
(1.60 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(1.45 |
) |
|
|
(4.72 |
) |
|
|
(4.12 |
) |
|
|
(2.82 |
) |
|
|
(2.61 |
) |
Total
distributions |
|
|
(1.45 |
) |
|
|
(4.72 |
) |
|
|
(4.12 |
) |
|
|
(2.82 |
) |
|
|
(2.61 |
) |
Net
asset value, end of year |
|
$ |
29.90 |
|
|
$ |
26.74 |
|
|
$ |
43.12 |
|
|
$ |
36.86 |
|
|
$ |
30.74 |
|
TOTAL RETURN(2) |
|
|
17.71 |
%(3) |
|
|
(30.76 |
)% |
|
|
30.11 |
% |
|
|
30.96 |
% |
|
|
(3.91 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
2,821.0 |
|
|
$ |
2,613.0 |
|
|
$ |
3,214.2 |
|
|
$ |
2,724.6 |
|
|
$ |
2,267.3 |
|
Ratio
of total expenses to average net assets |
|
|
1.05 |
% |
|
|
1.04 |
% |
|
|
1.03 |
% |
|
|
1.05 |
% |
|
|
1.05 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.31 |
)% |
|
|
(0.44 |
)% |
|
|
(0.15 |
)% |
|
|
(0.74 |
)% |
|
|
(0.69 |
)% |
Portfolio
turnover rate |
|
|
10.47 |
% |
|
|
16.83 |
% |
|
|
15.70 |
% |
|
|
16.93 |
% |
|
|
13.44 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
The
Adviser made a voluntary payment to the Fund in the amount of $573 to
compensate the Fund for a loss incurred due to a trading error. The impact
of this payment increased the Fund’s total return by less than
0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON SMALL CAP FUND
(CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R6 SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
26.73 |
|
|
$ |
43.10 |
|
|
$ |
36.85 |
|
|
$ |
30.73 |
|
|
$ |
34.94 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.09 |
) |
|
|
(0.14 |
) |
|
|
(0.06 |
) |
|
|
(0.23 |
) |
|
|
(0.21 |
) |
Net
realized and unrealized gain (loss) |
|
|
4.70 |
|
|
|
(11.51 |
) |
|
|
10.43 |
|
|
|
9.17 |
|
|
|
(1.39 |
) |
Total
from investment operations |
|
|
4.61 |
|
|
|
(11.65 |
) |
|
|
10.37 |
|
|
|
8.94 |
|
|
|
(1.60 |
) |
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Net
realized gain on investments |
|
|
(1.45 |
) |
|
|
(4.72 |
) |
|
|
(4.12 |
) |
|
|
(2.82 |
) |
|
|
(2.61 |
) |
Total
distributions |
|
|
(1.45 |
) |
|
|
(4.72 |
) |
|
|
(4.12 |
) |
|
|
(2.82 |
) |
|
|
(2.61 |
) |
Net
asset value, end of year |
|
$ |
29.89 |
|
|
$ |
26.73 |
|
|
$ |
43.10 |
|
|
$ |
36.85 |
|
|
$ |
30.73 |
|
TOTAL RETURN(2) |
|
|
17.71 |
%(3) |
|
|
(30.75 |
)% |
|
|
30.09 |
% |
|
|
30.97 |
% |
|
|
(3.91 |
)% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
206.3 |
|
|
$ |
184.4 |
|
|
$ |
272.8 |
|
|
$ |
218.5 |
|
|
$ |
161.9 |
|
Ratio
of total expenses to average net assets |
|
|
1.06 |
% |
|
|
1.04 |
% |
|
|
1.04 |
% |
|
|
1.05 |
% |
|
|
1.05 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.31 |
)% |
|
|
(0.41 |
)% |
|
|
(0.16 |
)% |
|
|
(0.74 |
)% |
|
|
(0.70 |
)% |
Portfolio
turnover rate |
|
|
10.47 |
% |
|
|
16.83 |
% |
|
|
15.70 |
% |
|
|
16.93 |
% |
|
|
13.44 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
The
Adviser made a voluntary payment to the Fund in the amount of $573 to
compensate the Fund for a loss incurred due to a trading error. The impact
of this payment increased the Fund’s total return by less than
0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON OPPORTUNITY FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAIL SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
24.72 |
|
|
$ |
43.49 |
|
|
$ |
35.11 |
|
|
$ |
21.53 |
|
|
$ |
22.02 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.27 |
) |
|
|
(0.39 |
) |
|
|
(0.49 |
) |
|
|
(0.30 |
) |
|
|
(0.22 |
) |
Net
realized and unrealized gain (loss) |
|
|
6.22 |
|
|
|
(14.78 |
) |
|
|
11.65 |
|
|
|
15.56 |
|
|
|
0.66 |
|
Total
from investment operations |
|
|
5.95 |
|
|
|
(15.17 |
) |
|
|
11.16 |
|
|
|
15.26 |
|
|
|
0.44 |
|
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 |
|
|
|
(3.60 |
) |
|
|
(2.78 |
) |
|
|
(1.68 |
) |
|
|
(0.93 |
) |
Total
distributions |
|
|
0.00 |
|
|
|
(3.60 |
) |
|
|
(2.78 |
) |
|
|
(1.68 |
) |
|
|
(0.93 |
) |
Net
asset value, end of year |
|
$ |
30.67 |
|
|
$ |
24.72 |
|
|
$ |
43.49 |
|
|
$ |
35.11 |
|
|
$ |
21.53 |
|
TOTAL RETURN(2) |
|
|
24.07 |
% |
|
|
(38.38 |
)% |
|
|
33.58 |
% |
|
|
75.25 |
% |
|
|
2.51 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
497.4 |
|
|
$ |
448.5 |
|
|
$ |
866.5 |
|
|
$ |
644.9 |
|
|
$ |
302.6 |
|
Ratio
of total expenses to average net assets |
|
|
1.32 |
%(3) |
|
|
1.31 |
%(3) |
|
|
1.31 |
%(3) |
|
|
1.34 |
%(3) |
|
|
1.34 |
%(3) |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.96 |
)% |
|
|
(1.15 |
)% |
|
|
(1.19 |
)% |
|
|
(1.14 |
)% |
|
|
(1.07 |
)% |
Portfolio
turnover rate |
|
|
23.29 |
% |
|
|
30.75 |
% |
|
|
38.74 |
% |
|
|
42.52 |
% |
|
|
37.10 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
Includes
interest expense of less than 0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON OPPORTUNITY FUND
(CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
26.24 |
|
|
$ |
45.85 |
|
|
$ |
36.79 |
|
|
$ |
22.42 |
|
|
$ |
22.83 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.21 |
) |
|
|
(0.32 |
) |
|
|
(0.41 |
) |
|
|
(0.25 |
) |
|
|
(0.18 |
) |
Net
realized and unrealized gain (loss) |
|
|
6.61 |
|
|
|
(15.69 |
) |
|
|
12.25 |
|
|
|
16.30 |
|
|
|
0.70 |
|
Total
from investment operations |
|
|
6.40 |
|
|
|
(16.01 |
) |
|
|
11.84 |
|
|
|
16.05 |
|
|
|
0.52 |
|
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 |
|
|
|
(3.60 |
) |
|
|
(2.78 |
) |
|
|
(1.68 |
) |
|
|
(0.93 |
) |
Total
distributions |
|
|
0.00 |
|
|
|
(3.60 |
) |
|
|
(2.78 |
) |
|
|
(1.68 |
) |
|
|
(0.93 |
) |
Net
asset value, end of year |
|
$ |
32.64 |
|
|
$ |
26.24 |
|
|
$ |
45.85 |
|
|
$ |
36.79 |
|
|
$ |
22.42 |
|
TOTAL RETURN(2) |
|
|
24.39 |
% |
|
|
(38.23 |
)% |
|
|
33.91 |
% |
|
|
75.82 |
% |
|
|
2.78 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
473.2 |
|
|
$ |
375.3 |
|
|
$ |
711.4 |
|
|
$ |
409.5 |
|
|
$ |
94.4 |
|
Ratio
of total expenses to average net assets |
|
|
1.06 |
%(3) |
|
|
1.05 |
%(3) |
|
|
1.05 |
%(3) |
|
|
1.08 |
%(3) |
|
|
1.09 |
%(3) |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.70 |
)% |
|
|
(0.90 |
)% |
|
|
(0.93 |
)% |
|
|
(0.88 |
)% |
|
|
(0.82 |
)% |
Portfolio
turnover rate |
|
|
23.29 |
% |
|
|
30.75 |
% |
|
|
38.74 |
% |
|
|
42.52 |
% |
|
|
37.10 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
Includes
interest expense of less than 0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON OPPORTUNITY FUND
(CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R6 SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
26.27 |
|
|
$ |
45.90 |
|
|
$ |
36.82 |
|
|
$ |
22.45 |
|
|
$ |
22.86 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.21 |
) |
|
|
(0.32 |
) |
|
|
(0.41 |
) |
|
|
(0.24 |
) |
|
|
(0.18 |
) |
Net
realized and unrealized gain (loss) |
|
|
6.61 |
|
|
|
(15.71 |
) |
|
|
12.27 |
|
|
|
16.29 |
|
|
|
0.70 |
|
Total
from investment operations |
|
|
6.40 |
|
|
|
(16.03 |
) |
|
|
11.86 |
|
|
|
16.05 |
|
|
|
0.52 |
|
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 |
|
|
|
(3.60 |
) |
|
|
(2.78 |
) |
|
|
(1.68 |
) |
|
|
(0.93 |
) |
Total
distributions |
|
|
0.00 |
|
|
|
(3.60 |
) |
|
|
(2.78 |
) |
|
|
(1.68 |
) |
|
|
(0.93 |
) |
Net
asset value, end of year |
|
$ |
32.67 |
|
|
$ |
26.27 |
|
|
$ |
45.90 |
|
|
$ |
36.82 |
|
|
$ |
22.45 |
|
TOTAL RETURN(2) |
|
|
24.36 |
% |
|
|
(38.23 |
)% |
|
|
33.94 |
% |
|
|
75.71 |
% |
|
|
2.78 |
% |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
28.8 |
|
|
$ |
23.4 |
|
|
$ |
36.1 |
|
|
$ |
25.7 |
|
|
$ |
14.5 |
|
Ratio
of total expenses to average net assets |
|
|
1.07 |
%(3) |
|
|
1.05 |
%(3) |
|
|
1.05 |
%(3) |
|
|
1.08 |
%(3) |
|
|
1.08 |
%(3) |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.70 |
)% |
|
|
(0.89 |
)% |
|
|
(0.93 |
)% |
|
|
(0.87 |
)% |
|
|
(0.81 |
)% |
Portfolio
turnover rate |
|
|
23.29 |
% |
|
|
30.75 |
% |
|
|
38.74 |
% |
|
|
42.52 |
% |
|
|
37.10 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
Includes
interest expense of less than 0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON FIFTH AVENUE GROWTH
FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAIL SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
28.73 |
|
|
$ |
55.33 |
|
|
$ |
46.62 |
|
|
$ |
32.10 |
|
|
$ |
31.02 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.28 |
) |
|
|
(0.39 |
) |
|
|
(0.46 |
) |
|
|
(0.26 |
) |
|
|
0.07 |
|
Net
realized and unrealized gain (loss) |
|
|
7.23 |
|
|
|
(24.49 |
) |
|
|
9.35 |
|
|
|
15.77 |
|
|
|
1.01 |
|
Total
from investment operations |
|
|
6.95 |
|
|
|
(24.88 |
) |
|
|
8.89 |
|
|
|
15.51 |
|
|
|
1.08 |
|
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 |
|
|
|
(1.72 |
) |
|
|
(0.18 |
) |
|
|
(0.99 |
) |
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
(1.72 |
) |
|
|
(0.18 |
) |
|
|
(0.99 |
) |
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
35.68 |
|
|
$ |
28.73 |
|
|
$ |
55.33 |
|
|
$ |
46.62 |
|
|
$ |
32.10 |
|
TOTAL RETURN(2) |
|
|
24.19 |
%(3) |
|
|
(46.49 |
)%(3)(5) |
|
|
19.13 |
%(3) |
|
|
49.56 |
%(3) |
|
|
3.48 |
%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
103.0 |
|
|
$ |
84.2 |
|
|
$ |
187.8 |
|
|
$ |
176.9 |
|
|
$ |
115.5 |
|
Ratio
of gross expenses to average net assets |
|
|
1.06 |
%(4) |
|
|
1.03 |
%(6) |
|
|
1.02 |
% |
|
|
1.05 |
% |
|
|
1.06 |
% |
Ratio
of net expenses to average net assets |
|
|
1.01 |
%(4) |
|
|
1.00 |
%(6) |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.88 |
)% |
|
|
(0.92 |
)% |
|
|
(0.88 |
)% |
|
|
(0.70 |
)% |
|
|
0.23 |
% |
Portfolio
turnover rate |
|
|
13.38 |
% |
|
|
37.41 |
% |
|
|
15.87 |
% |
|
|
11.57 |
% |
|
|
21.24 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
The
total returns would have been lower had certain expenses not been reduced
during the period shown. |
(4) |
|
Includes
interest expense of 0.01%. |
(5) |
|
The
Adviser made a voluntary payment to the Fund in the amount of $2,806 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%. |
(6) |
|
Includes
interest expense of less than 0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON FIFTH AVENUE GROWTH
FUND (CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
29.60 |
|
|
$ |
56.82 |
|
|
$ |
47.75 |
|
|
$ |
32.80 |
|
|
$ |
31.62 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.21 |
) |
|
|
(0.29 |
) |
|
|
(0.34 |
) |
|
|
(0.17 |
) |
|
|
0.17 |
|
Net
realized and unrealized gain (loss) |
|
|
7.47 |
|
|
|
(25.21 |
) |
|
|
9.59 |
|
|
|
16.15 |
|
|
|
1.01 |
|
Total
from investment operations |
|
|
7.26 |
|
|
|
(25.50 |
) |
|
|
9.25 |
|
|
|
15.98 |
|
|
|
1.18 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.04 |
) |
|
|
0.00 |
|
Net
realized gain on investments |
|
|
0.00 |
|
|
|
(1.72 |
) |
|
|
(0.18 |
) |
|
|
(0.99 |
) |
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
(1.72 |
) |
|
|
(0.18 |
) |
|
|
(1.03 |
) |
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
36.86 |
|
|
$ |
29.60 |
|
|
$ |
56.82 |
|
|
$ |
47.75 |
|
|
$ |
32.80 |
|
TOTAL RETURN(2) |
|
|
24.53 |
%(3) |
|
|
(46.35 |
)%(3)(5) |
|
|
19.44 |
%(3) |
|
|
49.93 |
%(3) |
|
|
3.73 |
%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
332.9 |
|
|
$ |
281.8 |
|
|
$ |
609.8 |
|
|
$ |
350.5 |
|
|
$ |
170.4 |
|
Ratio
of gross expenses to average net assets |
|
|
0.78 |
%(4) |
|
|
0.76 |
%(6) |
|
|
0.75 |
% |
|
|
0.78 |
% |
|
|
0.80 |
% |
Ratio
of net expenses to average net assets |
|
|
0.76 |
%(4) |
|
|
0.75 |
%(6) |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.63 |
)% |
|
|
(0.68 |
)% |
|
|
(0.63 |
)% |
|
|
(0.45 |
)% |
|
|
0.56 |
% |
Portfolio
turnover rate |
|
|
13.38 |
% |
|
|
37.41 |
% |
|
|
15.87 |
% |
|
|
11.57 |
% |
|
|
21.24 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
The
total returns would have been lower had certain expenses not been reduced
during the period shown. |
(4) |
|
Includes
interest expense of 0.01%. |
(5) |
|
The
Adviser made a voluntary payment to the Fund in the amount of $2,806 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%. |
(6) |
|
Includes
Interest expense of less than 0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON FIFTH AVENUE GROWTH
FUND (CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R6 SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
29.61 |
|
|
$ |
56.84 |
|
|
$ |
47.76 |
|
|
$ |
32.81 |
|
|
$ |
31.63 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.21 |
) |
|
|
(0.29 |
) |
|
|
(0.34 |
) |
|
|
(0.17 |
) |
|
|
0.17 |
|
Net
realized and unrealized gain (loss) |
|
|
7.46 |
|
|
|
(25.22 |
) |
|
|
9.60 |
|
|
|
16.15 |
|
|
|
1.01 |
|
Total
from investment operations |
|
|
7.25 |
|
|
|
(25.51 |
) |
|
|
9.26 |
|
|
|
15.98 |
|
|
|
1.18 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.04 |
) |
|
|
0.00 |
|
Net
realized gain on investments |
|
|
0.00 |
|
|
|
(1.72 |
) |
|
|
(0.18 |
) |
|
|
(0.99 |
) |
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
(1.72 |
) |
|
|
(0.18 |
) |
|
|
(1.03 |
) |
|
|
0.00 |
|
Net
asset value, end of year |
|
$ |
36.86 |
|
|
$ |
29.61 |
|
|
$ |
56.84 |
|
|
$ |
47.76 |
|
|
$ |
32.81 |
|
TOTAL RETURN(2) |
|
|
24.49 |
%(3) |
|
|
(46.36 |
)%(3)(5) |
|
|
19.45 |
%(3) |
|
|
49.92 |
%(3) |
|
|
3.73 |
%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
Net
assets (in millions), end of year |
|
$ |
25.5 |
|
|
$ |
21.1 |
|
|
$ |
39.6 |
|
|
$ |
33.1 |
|
|
$ |
22.5 |
|
Ratio
of gross expenses to average net assets |
|
|
0.78 |
%(4) |
|
|
0.76 |
%(6) |
|
|
0.75 |
% |
|
|
0.78 |
% |
|
|
0.79 |
% |
Ratio
of net expenses to average net assets |
|
|
0.76 |
%(4) |
|
|
0.75 |
%(6) |
|
|
0.75 |
% |
|
|
0.75 |
% |
|
|
0.75 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.63 |
)% |
|
|
(0.68 |
)% |
|
|
(0.63 |
)% |
|
|
(0.45 |
)% |
|
|
0.54 |
% |
Portfolio
turnover rate |
|
|
13.38 |
% |
|
|
37.41 |
% |
|
|
15.87 |
% |
|
|
11.57 |
% |
|
|
21.24 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
The
total returns would have been lower had certain expenses not been reduced
during the period shown. |
(4) |
|
Includes
interest expense of 0.01%. |
(5) |
|
The
Adviser made a voluntary payment to the Fund in the amount of $2,806 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%. |
(6) |
|
Includes
Interest expense of less than 0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON DISCOVERY FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAIL SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
22.27 |
|
|
$ |
36.93 |
|
|
$ |
28.17 |
|
|
$ |
19.41 |
|
|
$ |
23.77 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.22 |
) |
|
|
(0.32 |
) |
|
|
(0.43 |
) |
|
|
(0.24 |
) |
|
|
(0.22 |
) |
Net
realized and unrealized gain (loss) |
|
|
2.23 |
|
|
|
(13.05 |
) |
|
|
10.25 |
|
|
|
9.03 |
|
|
|
(2.64 |
) |
Total
from investment operations |
|
|
2.01 |
|
|
|
(13.37 |
) |
|
|
9.82 |
|
|
|
8.79 |
|
|
|
(2.86 |
) |
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 |
|
|
|
(1.29 |
) |
|
|
(1.06 |
) |
|
|
(0.03 |
) |
|
|
(1.50 |
) |
Total
distributions |
|
|
0.00 |
|
|
|
(1.29 |
) |
|
|
(1.06 |
) |
|
|
(0.03 |
) |
|
|
(1.50 |
) |
Net
asset value, end of year |
|
$ |
24.28 |
|
|
$ |
22.27 |
|
|
$ |
36.93 |
|
|
$ |
28.17 |
|
|
$ |
19.41 |
|
TOTAL RETURN(2) |
|
|
9.03 |
% |
|
|
(37.47 |
)% |
|
|
35.61 |
% |
|
|
45.33 |
% |
|
|
(11.93 |
)%(3) |
RATIOS/SUPPLEMENT
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
131.6 |
|
|
$ |
146.9 |
|
|
$ |
270.3 |
|
|
$ |
165.2 |
|
|
$ |
122.7 |
|
Ratio
of gross expenses to average net assets |
|
|
1.33 |
% |
|
|
1.32 |
% |
|
|
1.31 |
% |
|
|
1.35 |
% |
|
|
1.36 |
% |
Ratio
of net expenses to average net assets |
|
|
1.33 |
% |
|
|
1.32 |
% |
|
|
1.31 |
% |
|
|
1.35 |
% |
|
|
1.35 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.90 |
)% |
|
|
(1.11 |
)% |
|
|
(1.20 |
)% |
|
|
(1.09 |
)% |
|
|
(1.10 |
)% |
Portfolio
turnover rate |
|
|
34.45 |
% |
|
|
40.64 |
% |
|
|
36.52 |
% |
|
|
43.36 |
% |
|
|
55.94 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total returns reflect
investment of all dividends and distributions, if any.
|
(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 DISCOVERY FUND
(CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INSTITUTIONAL SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
22.80 |
|
|
$ |
37.68 |
|
|
$ |
28.65 |
|
|
$ |
19.68 |
|
|
$ |
24.03 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.16 |
) |
|
|
(0.25 |
) |
|
|
(0.35 |
) |
|
|
(0.19 |
) |
|
|
(0.18 |
) |
Net
realized and unrealized gain (loss) |
|
|
2.27 |
|
|
|
(13.34 |
) |
|
|
10.44 |
|
|
|
9.19 |
|
|
|
(2.67 |
) |
Total
from investment operations |
|
|
2.11 |
|
|
|
(13.59 |
) |
|
|
10.09 |
|
|
|
9.00 |
|
|
|
(2.85 |
) |
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 |
|
|
|
(1.29 |
) |
|
|
(1.06 |
) |
|
|
(0.03 |
) |
|
|
(1.50 |
) |
Total
distributions |
|
|
0.00 |
|
|
|
(1.29 |
) |
|
|
(1.06 |
) |
|
|
(0.03 |
) |
|
|
(1.50 |
) |
Net
asset value, end of year |
|
$ |
24.91 |
|
|
$ |
22.80 |
|
|
$ |
37.68 |
|
|
$ |
28.65 |
|
|
$ |
19.68 |
|
TOTAL RETURN(2) |
|
|
9.25 |
% |
|
|
(37.31 |
)% |
|
|
35.97 |
% |
|
|
45.77 |
% |
|
|
(11.75 |
)% |
RATIOS/SUPPLEMENT
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
1,098.7 |
|
|
$ |
955.6 |
|
|
$ |
1,721.2 |
|
|
$ |
759.2 |
|
|
$ |
409.4 |
|
Ratio
of gross expenses to average net assets |
|
|
1.06 |
% |
|
|
1.06 |
% |
|
|
1.05 |
% |
|
|
1.08 |
% |
|
|
1.10 |
% |
Ratio
of net expenses to average net assets |
|
|
1.06 |
% |
|
|
1.06 |
% |
|
|
1.05 |
% |
|
|
1.08 |
% |
|
|
1.10 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.64 |
)% |
|
|
(0.84 |
)% |
|
|
(0.94 |
)% |
|
|
(0.82 |
)% |
|
|
(0.88 |
)% |
Portfolio
turnover rate |
|
|
34.45 |
% |
|
|
40.64 |
% |
|
|
36.52 |
% |
|
|
43.36 |
% |
|
|
55.94 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total returns reflect
investment of all dividends and distributions, if any.
|
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON DISCOVERY FUND
(CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R6 SHARES |
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
22.80 |
|
|
$ |
37.68 |
|
|
$ |
28.65 |
|
|
$ |
19.68 |
|
|
$ |
24.03 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
(0.16 |
) |
|
|
(0.24 |
) |
|
|
(0.35 |
) |
|
|
(0.19 |
) |
|
|
(0.18 |
) |
Net
realized and unrealized gain (loss) |
|
|
2.28 |
|
|
|
(13.35 |
) |
|
|
10.44 |
|
|
|
9.19 |
|
|
|
(2.67 |
) |
Total
from investment operations |
|
|
2.12 |
|
|
|
(13.59 |
) |
|
|
10.09 |
|
|
|
9.00 |
|
|
|
(2.85 |
) |
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 |
|
|
|
(1.29 |
) |
|
|
(1.06 |
) |
|
|
(0.03 |
) |
|
|
(1.50 |
) |
Total
distributions |
|
|
0.00 |
|
|
|
(1.29 |
) |
|
|
(1.06 |
) |
|
|
(0.03 |
) |
|
|
(1.50 |
) |
Net
asset value, end of year |
|
$ |
24.92 |
|
|
$ |
22.80 |
|
|
$ |
37.68 |
|
|
$ |
28.65 |
|
|
$ |
19.68 |
|
TOTAL RETURN(2) |
|
|
9.30 |
% |
|
|
(37.30 |
)% |
|
|
35.97 |
% |
|
|
45.77 |
% |
|
|
(11.75 |
)% |
RATIOS/SUPPLEMENT
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
46.4 |
|
|
$ |
41.3 |
|
|
$ |
38.1 |
|
|
$ |
15.3 |
|
|
$ |
6.8 |
|
Ratio
of gross expenses to average net assets |
|
|
1.06 |
% |
|
|
1.06 |
% |
|
|
1.05 |
% |
|
|
1.08 |
% |
|
|
1.09 |
% |
Ratio
of net expenses to average net assets |
|
|
1.06 |
% |
|
|
1.06 |
% |
|
|
1.05 |
% |
|
|
1.08 |
% |
|
|
1.09 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
(0.64 |
)% |
|
|
(0.85 |
)% |
|
|
(0.94 |
)% |
|
|
(0.83 |
)% |
|
|
(0.88 |
)% |
Portfolio
turnover rate |
|
|
34.45 |
% |
|
|
40.64 |
% |
|
|
36.52 |
% |
|
|
43.36 |
% |
|
|
55.94 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total returns reflect
investment of all dividends and distributions, if any.
|
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON DURABLE ADVANTAGE
FUND
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETAIL SHARES |
|
|
|
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
14.66 |
|
|
$ |
18.47 |
|
|
$ |
14.47 |
|
|
$ |
11.77 |
|
|
$ |
10.74 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
|
|
|
|
Net
investment income (loss)(1) |
|
|
(0.00 |
)(5) |
|
|
(0.04 |
) |
|
|
(0.05 |
) |
|
|
(0.00 |
)(5) |
|
|
0.03 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
4.89 |
|
|
|
(3.71 |
) |
|
|
4.06 |
|
|
|
2.72 |
|
|
|
1.03 |
|
Total
from investment operations |
|
|
4.89 |
|
|
|
(3.75 |
) |
|
|
4.01 |
|
|
|
2.72 |
|
|
|
1.06 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
|
|
|
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
Net
realized gain on investments |
|
|
0.00 |
|
|
|
(0.06 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
Net
asset value, end of year |
|
$ |
19.55 |
|
|
$ |
14.66 |
|
|
$ |
18.47 |
|
|
$ |
14.47 |
|
|
$ |
11.77 |
|
TOTAL RETURN(2) |
|
|
33.36 |
%(3) |
|
|
(20.39 |
)%(3) |
|
|
27.70 |
%(3) |
|
|
23.10 |
%(3) |
|
|
9.97 |
%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
16.6 |
|
|
$ |
7.6 |
|
|
$ |
9.8 |
|
|
$ |
4.0 |
|
|
$ |
1.9 |
|
Ratio
of gross expenses to average net assets |
|
|
1.40 |
% |
|
|
1.49 |
%(4) |
|
|
1.91 |
% |
|
|
2.80 |
% |
|
|
6.22 |
% |
Ratio
of net 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 |
|
|
(0.02 |
)% |
|
|
(0.23 |
)% |
|
|
(0.29 |
)% |
|
|
(0.01 |
)% |
|
|
0.25 |
% |
Portfolio
turnover rate |
|
|
1.93 |
% |
|
|
42.09 |
% |
|
|
10.58 |
% |
|
|
16.55 |
% |
|
|
13.23 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
The
total returns would have been lower had certain expenses not been reduced
during the period shown. |
(4) |
|
Includes interest expense of
less than 0.01%. |
(5) |
|
Less
than $0.01 per share. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON DURABLE ADVANTAGE
FUND (CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INSTITUTIONAL SHARES |
|
|
|
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
14.82 |
|
|
$ |
18.63 |
|
|
$ |
14.56 |
|
|
$ |
11.82 |
|
|
$ |
10.76 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
0.04 |
|
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
0.03 |
|
|
|
0.06 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
4.96 |
|
|
|
(3.76 |
) |
|
|
4.09 |
|
|
|
2.73 |
|
|
|
1.03 |
|
Total
from investment operations |
|
|
5.00 |
|
|
|
(3.75 |
) |
|
|
4.08 |
|
|
|
2.76 |
|
|
|
1.09 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
Net
realized gain on investments |
|
|
0.00 |
|
|
|
(0.06 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
Net
asset value, end of year |
|
$ |
19.82 |
|
|
$ |
14.82 |
|
|
$ |
18.63 |
|
|
$ |
14.56 |
|
|
$ |
11.82 |
|
TOTAL RETURN(2) |
|
|
33.74 |
%(3) |
|
|
(20.21 |
)%(3) |
|
|
28.01 |
%(3) |
|
|
23.34 |
%(3) |
|
|
10.23 |
%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
78.7 |
|
|
$ |
23.6 |
|
|
$ |
27.1 |
|
|
$ |
8.0 |
|
|
$ |
4.7 |
|
Ratio
of gross expenses to average net assets |
|
|
1.00 |
% |
|
|
1.10 |
%(4) |
|
|
1.48 |
% |
|
|
2.40 |
% |
|
|
4.91 |
% |
Ratio
of net expenses to average net assets |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
0.22 |
% |
|
|
0.03 |
% |
|
|
(0.05 |
)% |
|
|
0.22 |
% |
|
|
0.52 |
% |
Portfolio
turnover rate |
|
|
1.93 |
% |
|
|
42.09 |
% |
|
|
10.58 |
% |
|
|
16.55 |
% |
|
|
13.23 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
The
total returns would have been lower had certain expenses not been reduced
during the period shown. |
(4) |
|
Includes
interest expense of less than 0.01%. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
BARON DURABLE ADVANTAGE
FUND (CONTINUED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R6 SHARES |
|
|
|
|
|
|
Year Ended September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
14.82 |
|
|
$ |
18.63 |
|
|
$ |
14.56 |
|
|
$ |
11.82 |
|
|
$ |
10.75 |
|
INCOME (LOSS) FROM
INVESTMENT OPERATIONS: |
|
Net
investment income (loss)(1) |
|
|
0.04 |
|
|
|
0.00 |
(5) |
|
|
(0.01 |
) |
|
|
0.03 |
|
|
|
0.06 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
4.96 |
|
|
|
(3.75 |
) |
|
|
4.09 |
|
|
|
2.73 |
|
|
|
1.04 |
|
Total
from investment operations |
|
|
5.00 |
|
|
|
(3.75 |
) |
|
|
4.08 |
|
|
|
2.76 |
|
|
|
1.10 |
|
LESS DISTRIBUTIONS
TO SHAREHOLDERS FROM: |
|
Net
investment income |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
Net
realized gain on investments |
|
|
0.00 |
|
|
|
(0.06 |
) |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
0.00 |
|
Total
distributions |
|
|
0.00 |
|
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
Net
asset value, end of year |
|
$ |
19.82 |
|
|
$ |
14.82 |
|
|
$ |
18.63 |
|
|
$ |
14.56 |
|
|
$ |
11.82 |
|
TOTAL RETURN(2) |
|
|
33.74 |
%(3) |
|
|
(20.21 |
)%(3) |
|
|
28.01 |
%(3) |
|
|
23.34 |
%(3) |
|
|
10.34 |
%(3) |
RATIOS/SUPPLEMENTAL
DATA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
assets (in millions), end of year |
|
$ |
4.9 |
|
|
$ |
3.5 |
|
|
$ |
4.3 |
|
|
$ |
2.5 |
|
|
$ |
0.5 |
|
Ratio
of gross expenses to average net assets |
|
|
1.01 |
% |
|
|
1.07 |
%(4) |
|
|
1.47 |
% |
|
|
1.93 |
% |
|
|
4.65 |
% |
Ratio
of net expenses to average net assets |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
|
|
0.70 |
% |
Ratio
of net investment income (loss) to average net assets |
|
|
0.23 |
% |
|
|
0.02 |
% |
|
|
(0.04 |
)% |
|
|
0.23 |
% |
|
|
0.53 |
% |
Portfolio
turnover rate |
|
|
1.93 |
% |
|
|
42.09 |
% |
|
|
10.58 |
% |
|
|
16.55 |
% |
|
|
13.23 |
% |
(1) |
|
Based
on average shares outstanding. |
(2) |
|
Total
returns reflect reinvestment of all dividends and distributions, if
any. |
(3) |
|
The
total returns would have been lower had certain expenses not been reduced
during the period shown. |
(4) |
|
Includes interest expense of
less than 0.01%. |
(5) |
|
Less
than $0.01 per share. |
|
|
|
Information about your
Investment |
|
Baron Funds® |
General Information
Custodian, Administrator, Transfer Agent and Dividend
Agent
State
Street Bank and Trust Company (“SSBT”), One Congress Street, Suite 1, Boston, MA
02114-2016, serves as the custodian for the Funds’ cash and securities.
SSBT
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. (“SS&C”) serves as
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 Massachusetts business 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
January 26, 2024. 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 (1-800-992-2766). The SAI and
shareholder reports are also available on the Baron Funds® website, www.BaronFunds.com.
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By telephone: |
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Call 1-800-99BARON
(1-800-992-2766) |
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By mail: |
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Write to: BARON FUNDS®
767 Fifth Avenue
New York, NY 10153 |
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By e-mail: |
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Send your request to:
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On the Internet: |
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Text-only versions of Baron
Funds® documents
can be viewed online or downloaded from: www.BaronFunds.com or from the
EDGAR database on the SEC’s website at www.sec.gov. |
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Ticker Symbols: |
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Baron Asset Fund® |
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Retail Shares |
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BARAX |
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Institutional Shares |
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BARIX |
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R6 Shares |
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BARUX |
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Baron Growth Fund® |
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Retail Shares |
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BGRFX |
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Institutional Shares |
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BGRIX |
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R6 Shares |
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BGRUX |
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Baron Small Cap Fund® |
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Retail Shares |
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BSCFX |
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Institutional Shares |
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BSFIX |
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R6 Shares |
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BSCUX |
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Baron Opportunity Fund® |
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Retail Shares |
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BIOPX |
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Institutional Shares |
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BIOIX |
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R6 Shares |
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BIOUX |
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Baron Fifth Avenue Growth
Fund® |
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Retail Shares |
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BFTHX |
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Institutional Shares |
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BFTIX |
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R6 Shares |
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BFTUX |
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Baron Discovery Fund® |
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Retail Shares |
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BDFFX |
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Institutional Shares |
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BDFIX |
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R6 Shares |
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BDFUX |
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Baron Durable Advantage
Fund® |
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Retail Shares |
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BDAFX |
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Institutional Shares |
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BDAIX |
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R6 Shares |
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BDAUX |
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SEC file number: |
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811-5032 |
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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.
STATPROTRUST 1/26/2024