Meet the Baron Investment Team Sessions

Session 2: Health Care, Real Estate, and FinTech

 

 

 

 

 

Return To All Session Recordings

 

Investors should consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. The prospectus and summary prospectuses contain this and other information about the Funds. You may obtain them from the Funds’ distributor, Baron Capital, Inc., by calling 1-800-99BARON or visiting www.BaronFunds.com. Please read them carefully before investing.

 

Baron Real Estate Fund’s annualized returns for the Institutional Shares as of September 30, 2022: 1-year, (26.68)%; 5-year, 8.36%; 10-year, 10.34%.  Annual expense ratio for the Institutional Shares as of December 31, 2021 was 1.05%.

The MSCI USA IMI Extended Real Estate Index’s annualized returns for the Institutional Shares as of September 30, 2022: 1-year, (20.39)%; 5-year, 4.17%; 10-year, 8.15%

Baron Real Estate Income Fund’s annualized returns for the Institutional Shares as of September 30, 2022: 1-year, (19.79)%; 3-year, 6.17%; since Inception (12/29/2017), 6.81%.  Annual expense ratio for the Institutional Shares as of December 31, 2021 was 1.08%, but the net annual expense ratio was 0.80% (net of the Adviser’s fee waivers).

The MSCI US REIT Index’s annualized returns for the Institutional Shares as of September 30, 2022: 1-year, (17.46)%; 3-year, (3.08) %; since fund inception (12/29/2017), 1.59%

Baron Health Care Fund’s annualized returns for the Institutional Shares as of September 30, 2022: 1-year, (22.25)%; 3-year, 15.40%; since Inception (4/30/2018), 12.50%.  Annual expense ratio for the Institutional Shares as of December 31, 2021 was 0.89%, but the net annual expense ratio was 0.85% (net of the Adviser’s fee waivers).

The Russell 3000 Health Care Index’s annualized returns for the Institutional Shares as of September 30, 2022: 1-year, (9.77)%; 3-year, 11.05%; since fund inception (4/30/2018), 10.03%.

Baron FinTech Fund’s annualized returns for the Institutional Shares as of September 30, 2022: 1-year, (38.07)%; since Inception (12/31/2019), 2.80%.  Annual expense ratio for the Institutional Shares as of December 31, 2021 was 1.18%, but the net annual expense ratio was 0.95% (net of the Adviser’s fee waivers).

The S&P 500 Index’s annualized returns for the Institutional Shares as of September 30, 2022: 1-year, (15.47)%; since fund inception (12/31/2019), 5.55%.

 

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 reimburses certain Baron Fund expenses pursuant to a contract expiring on August 29, 2033, unless renewed for another 11-year term 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.

 

Risks: In addition to general market conditions, the value of the Baron Real Estate and Baron Real Estate Income Funds will be affected by the strength of the real estate markets as well as by interest rate fluctuations, credit risk, environmental issues and economic conditions. The Baron Real Estate Income Fund invests in debt securities which are affected by changes in prevailing interest rates and the perceived credit quality of the issuer. In addition to general market conditions, FinTech companies may be adversely impacted by government regulations, economic conditions and deterioration in credit markets. Companies in the Information Technology sector are subject to rapid changes in technology product cycles; rapid product obsolescence; government regulation; and increased competition, both domestically and internationally, including competition from foreign competitors with lower production costs. The IT services industry can be significantly affected by competitive pressures, such as technological developments, fixed-rate pricing, and the ability to attract and retain skilled employees, and the success of companies in the industry is subject to continued demand for IT services. The Baron FinTech Fund is non-diversified, which means it may have a greater percentage of its assets in a single issuer than a diversified fund. In addition to general market conditions, the value of the Baron Health Care Fund will be affected by investments in health care companies which are subject to a number of risks, including the adverse impact of legislative actions and government regulations. All the Funds invest in companies of all sizes, including small and medium sized companies whose securities may be thinly traded and more difficult to sell during market downturns.

As of 9/30/2022, the Morningstar Ratings™ were based on 234, 206, 150, and 234 share classes for the 3-year, 5-year, 10-year, and Overall periods, respectively. The Baron Real Estate Fund received 5 stars for each period. The Morningstar Ratings are for the Institutional Share Class only; other classes may have different performance characteristics. The Morningstar Ratings are based on the Morningstar Risk-Adjusted Return measures.

As of 9/30/2022, the Morningstar Real Estate Category consisted of 253, 234, 206, and 150 share classes for the 1-, 3-, 5-, and 10-year periods. Morningstar ranked Baron Real Estate Fund Institutional Share Class in the 96th, 1st, 1st, and 1st percentiles, respectively. On an absolute basis, Morningstar ranked Baron Real Estate Fund Institutional Share Class as the 243rd, 2nd, 2nd, and 1st best performing share class in its Category, for the 1-, 3-, 5-, and 10-year periods, respectively.

As of 9/30/2022, Morningstar ranked Baron Real Estate Fund R6 Share Class in the 95th, 1st, and 1st percentiles, for the 1-, 3-, and 5 year periods, respectively. On an absolute basis, Morningstar ranked Baron Real Estate Fund R6 Share Class as the 242nd, 1st, and 1st best performing share class in its Category for the 1-, 3-, and 5-year periods, respectively.

As of 9/30/2022, the Morningstar Ratings™ were based on 234 share classes for the 3-year and Overall periods. The Baron Real Estate Income Fund received 5 Stars for both periods. The Morningstar Ratings™ are for the Institutional Share Class only; other classes may have different performance characteristics. The Morningstar Ratings are based on the Morningstar Risk-Adjusted Return measures.

As of 9/30/2022, the Morningstar Real Estate Category consisted of 253 and 234 share classes for the 1- and 3-year periods. Morningstar ranked Baron Real Estate Income Fund in the 81st and 2nd percentiles for the 1- and 3-year periods, respectively.

Morningstar calculates the Morningstar Real Estate Category Average performance and rankings using its Fractional Weighting methodology. Morningstar rankings are based on total returns and do not include sales charges. Total returns do account for management, administrative, and 12b-1 fees and other costs automatically deducted from fund assets.

The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10- year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

© 2022 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The discussion of market trends is not intended as advice to any person regarding the advisability of investing in any particular security. The views expressed in this presentation reflect those of the respective speaker. Some of our comments are based on 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 and are subject to change at any time based on market and other conditions and Baron has no obligation to update them.

Portfolio holdings as a percentage of net assets as of September 30, 2022 for securities mentioned are as follows: Abbott Laboratories - Baron Health Care Fund (1.9%);  Alexandria Real Estate Equities, Inc. - Baron Health Care Fund (0.8%), Baron Real Estate Fund (1.2%), Baron Real Estate Income Fund (2.2%);  Alnylam Pharmaceuticals, Inc. - Baron Health Care Fund (1.1%);  Arrowhead Pharmaceuticals, Inc. - Baron Health Care Fund (0.2%);  DexCom, Inc. - Baron Health Care Fund (0.7%);  Edwards Lifesciences Corp. - Baron Health Care Fund (2.2%);  Floor & Decor Holdings, Inc. - Baron Real Estate Fund (1.5%);  Illumina, Inc. - Baron Health Care Fund (1.7%);  Inspire Medical Systems, Inc. - Baron Health Care Fund (1.7%);  Intuitive Surgical, Inc. - Baron Health Care Fund (2.3%);  Invitation Homes, Inc. - Baron Real Estate Fund (2.7%), Baron Real Estate Income Fund (5.9%);  Lennar Corporation - Baron Real Estate Fund (1.8%);  MGM Resorts International - Baron Real Estate Fund (2.5%);  Red Rock Resorts, Inc. - Baron Real Estate Fund (2.0%); Toll Brothers, Inc. - Baron Real Estate Fund (1.8%);  Vail Resorts, Inc. - Baron Real Estate Fund (2.8%), Baron Real Estate Income Fund (1.5%)

Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.

BAMCO, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Baron Capital, Inc. is a broker-dealer registered with the SEC and member of the Financial Industry Regulatory Authority, Inc. (FINRA).