Distribution Information 2014

The following Funds will make a distribution in December 2014

See Important Tax Information Below

The Funds listed below have ESTIMATED distributions as follows. These estimates are based on information as of 10/29/2014 and some amounts may change significantly as year-end tax calculations are performed. These estimates are for informational purposes and do not constitute a guarantee that any Fund will pay distributions. 
                                                                                                                                                                                                               

Record Date 12/01/2014     -     Ex Date 12/02/2014     -     Payable Date 12/03/2014
Fund
Ticker
ESTIMATED
Net Investment  Income
ESTIMATED
Short-Term Capital Gain
ESTIMATED
Long-Term Capital Gain
ESTIMATED
Total
Baron Asset Fund- Retail BARAX - - $4.1450 $4.1450
Baron Asset Fund- Institutional BARIX - - $4.1450 $4.1450
Baron Fifth Avenue Growth Fund- Retail BFTHX $0.01 - - $0.01
Baron Fifth Avenue Growth Fund- Institutional BFTIX $0.01 - - $0.01
Baron  Growth Fund- Retail BGRFX - - $3.1799 $3.1799
Baron Growth Fund- Institutional BGRIX - - $3.1799 $3.1799
Baron Small Cap Fund- Retail BSCFX - - $2.0249 $2.0249
Baron Small Cap Fund- Institutional BSFIX - - $2.0249 $2.0249
Baron Opportunity Fund- Retail BIOPX - - $1.0230 $1.0230
Baron Opportunity Fund- Institutional BIOIX - - $1.0230 $1.0230
Baron Fifth Avenue Fund - Retail BFTHX $0.0114 - - $0.0114
Baron Fifth Avenue Fund - Institutional BFTHIX $0.0114 - - $0.0114
Baron Discovery Fund- Retail BDFFX - - - -
Baron Discovery Fund- Institutional BDFIX - - - -
Baron Partners Fund - Retail BPTRX - - - -
Baron Partners Fund - Institutional BPTIX - - - -
Baron Focused Growth Fund- Retail BFGFX - - $0.1425 $0.1425
Baron Focused Growth Fund- Institutional BFGIX - - $0.1425 $0.1425
Baron International Growth Fund- Retail BIGFX - - $0.3920 $0.3920
Baron International Growth Fund- Institutional BINIX - - $0.3920 $0.3920
Baron Real Estate Fund - Retail BREFX $0.0394 - - $0.0394
Baron Real Estate Fund - Institutional BREIX $0.0394 - - $0.0394
Baron Emerging Markets Fund- Retail BEXFX $0.0377 - - $0.0377
Baron Emerging Markets Fund- Institutional BEXIX $0.0377 - - $0.0377
Baron Energy and Resources Fund - Retail BENFX - - - -
Baron Energy and Resources Fund - Institutional BENIX - - - -
Baron Global Advantage Fund - Retail BGAFX - - - -
Baron Global Advantage Fund - Institutional BGAIX - - - -


The following Funds have made a Spillback Distribution as follows:  


Record Date 9/22/2014     -     Ex Date 9/23/2014     -     Payable Date 9/24/2014
Fund Ticker Ordinary Income Short-Term Capital Gain  Long-Term Capital Gain
Total
Baron Focused Growth Fund- Retail BFGFX - - $0.0119 $0.0119
Baron Focused Growth Fund- Institutional BFGIX - - $0.0119 $0.0119
Baron International Growth Fund- Retail BIGFX $0.0034 - $0.1491 $0.1525
Baron International Growth Fund- Institutional BINIX $0.0400 - $0.1491 $0.1891
Baron Global Advantage Fund- Retail BGAFX - $0.0009 - $0.0009
Baron Global Advantage Fund- Institutional BGAIX - $0.0009 - $0.0009

Net investment income and short-term capital gains are considered ordinary income for tax purposes and are taxed at the same federal tax rate.

Shareholders should remember that the net asset value of a fund with an ordinary income and/or capital gain distribution will decline on the ex-dividend date to reflect the adjusted net asset value of a Fund after the distribution.

What is a Spillback Distribution?

Spillback distributions are distributions of ordinary income and/or capital gains from the previous fiscal year that were not distributed by the end of that year. Spillback distributions must be declared within 9 1/2 months of the end of the Fund's fiscal year. They are common practice for mutual funds with fiscal years ending December 31.

Spillback distributions are taxable to investors who hold shares on the record date, even though they represent ordinary income and/or capital gains earned by the funds in 2013.

Spillback distributions will be reported to shareholders on Form 1099-DIV, which will be mailed to shareholders in 2015.

More information on Distributions:

Fund distributions are taxable currently whether shareholders receive them in cash or reinvest in additional Fund shares, unless Fund shares are held in a tax-advantaged account.

Shareholders should consult their tax advisor regarding the necessary filings with the IRS.

Record Date - Investors who own shares in the Fund as of the record date (shareholders of record) will receive the distribution.

Ex Date - The Fund’s NAV will be reduced by the amount of the distribution on this day.

Payable Date - Distributions will be paid to shareholders of record on this day.

Qualified Dividends - If your Baron Fund has a qualified dividend percentage listed in the table, multiply that percentage by the sum of your income dividends plus short-term capital gains. This is the amount of your year-end dividend distribution that is eligible to be taxed at the lower 15% rate applicable to qualified dividends. In order to treat a dividend as qualifying for the lower rates, you must have held your shares for at least 61 days during the 121-day period beginning 60 days before the ex-dividend date of the distribution.


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This material does not constitute tax, legal or accounting advice and neither Baron Funds nor any of its agents, employees or registered representatives are in the business of offering such advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors.