Important Additional Information
Baron Fifth Avenue Growth Fund’s annualized returns for the Retail Shares as of June 30, 2016: 1-year, (6.99)%; 5-years, 10.32%; 10-years, 6.05%. Annual expense ratio for the Retail Shares as of September 30, 2015 (restated to reflect current fees) was 1.12%, but the net annual expense ratio was 1.10% (net of the Adviser’s fee waivers).
Baron Fifth Avenue Growth Fund’s annualized returns for the Institutional Shares as of June 30, 2016: 1-year, (6.71)%; 5-years, 10.61%; 10-years, 6.24%. Annual expense ratio for the Institutional Shares as of September 30, 2015 (restated to reflect current fees) was 0.84%.
Baron Global Advantage Fund’s annualized returns for the Retail Shares as of June 30, 2016: 1-year, (10.82)%; Since Inception (4/30/12), 7.27%. Annual expense ratio for the Retail Shares as of December 31, 2015 was 3.19%, but the net annual expense ratio was 1.50% (net of the Adviser’s fee waivers).
Baron Global Advantage Fund’s annualized returns for the Institutional Shares as of June 30, 2016: 1-year, (10.64)%; Since Inception (4/30/12), 7.49%. Annual expense ratio for the Institutional Shares as of December 31, 2015 was 2.89%, but the net annual expense ratio was 1.25% (net of the Adviser’s fee waivers).
The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor’s shares, when redeemed, may be worth more or less than their original cost. The Adviser has reimbursed certain Fund expenses (by contract as long as BAMCO, Inc. is the adviser to the Fund) and the Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month end, visit www.BaronFunds.com or call 1-800-99BARON.
You should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund and can be obtained from the Fund's distributor, Baron Capital, Inc., by calling 1-800-99BARON or visiting www.BaronFunds.com. Please read them carefully before investing.
The discussion of market trends and companies throughout this report are not intended as advice to any person regarding the advisability of investing in any particular security. Some of our comments are based on current management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. Our views are a reflection of our best judgment at the time of the publication of this report and are subject to change any time based on market and other conditions, and we have no obligation to update them.
The Fund invests primarily in large cap equity securities which are subject to price fluctuations in the stock market.
Growth stocks can react differently to issuer, political, market and economic developments than the market as a whole. Non-U.S. investments may involve additional risks to those inherent in U.S. investments, including exchange-rate fluctuations, political or economic instability, the imposition of exchange controls, expropriation, limited disclosure and illiquid markets, resulting in greater share price volatility. Securities of small and medium-sized companies may be thinly traded and more difficult to sell.
The Fund may not achieve its objectives. Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.
The top 10 holdings for the Baron Fifth Avenue Growth Fund as of June 30, 2016 are as follows:
| Security |
% of Net Assets |
| Amazon.com, Inc |
14.0 |
| Alphabet Inc. |
6.6 |
| Equinix, Inc. |
5.1 |
| Alibaba Group Holding Limited |
5.0 |
| Facebook, Inc. |
5.0 |
| Visa, Inc. |
4.1 |
| MasterCard, Inc. |
3.8 |
| The Priceline Group, Inc. |
3.6 |
| Starbucks Corp. |
3.3 |
| Illumina, Inc. |
3.2 |
The top 10 holdings for the Baron Global Advantage Fund as of June 30, 2016 are as follows:
| Security |
% of Net Assets |
| Amazon.com, Inc. |
10.6 |
| TAL Education Group |
5.7 |
| Alphabet Inc. |
5.4 |
| Facebook, Inc. |
5.0 |
| Alibaba Group Holding Limited |
4.9 |
| Naspers Limited |
4.6 |
| Constellation Software, Inc. |
4.1 |
| Mobileye N.V. |
3.6 |
| Mellanox Technologies Ltd. |
3.4 |
| Sarana Menara Nusantara Tbk PT |
3.4 |