The information contained on this site is intended for institutional investors only, and is published strictly for informational purposes only without regard to the investment objective, financial situation or specific needs of any particular investor. The information is not intended for use by institutional investors in a jurisdiction where distribution or purchase is not authorized.
An institutional investor is one that falls within one or more of the following categories:
If you do not fall within at least one of the above categories you should not access the information contained in the site.
Baron Capital Management, Inc. makes reasonable efforts to ensure the material on the site is as accurate and timely as possible and that disruptions of service are minimal, Baron Capital Management, Inc. makes no warranty or guarantee concerning the availability of this site or the services or the accuracy of the information on it. In addition, the information contained on the site is in no way intended to constitute investment advice, an offer to sell, or a recommendation of any security or investment product. In fact, the products described herein may not be available to, or suitable for, all investors. You should consider, if appropriate, obtaining independent professional advice before making an investment decision. Please consider the charges, risks, expenses and investment objectives carefully before investing. Nothing on this site is intended to constitute legal or tax advice.
Please keep in mind that the opinions and views expressed through the content and commentaries published on the site are just that - opinions and views - and that they are published on the site for informational purposes only. In addition, views and opinions are based on the information available at the time and may not necessarily be shared by Baron Capital Management, Inc., or its employees, in general. As the investing environment changes, so could this information, and Baron Capital Management, Inc. has no responsibility to update it.
Past performance is not a guarantee of future performance. Investment results and principal value will fluctuate so shares, when redeemed, may be worth more or less than their original cost. Investors should be aware of the additional risks associated with investments in non-diversification, undervalued or overlooked companies and investments in specific industries. Additional risks may include those associated with investing in foreign securities, emerging markets, and companies with relatively small market capitalizations.
By selecting “I Agree” below, you confirm that you are an institutional investor or consultant to an institutional investor.
The link you have selected is not available within the Institution user experience. You will be switched to view this website as a Financial Advisor.
When you wish to view strategies again, click an 'Institution' link within the 'View As' menu or 'Strategies' in the footer.
Thank you for your email. We will respond as soon as possible.
A mutual fund dividend is income from dividends and interest, less operating expenses, earned by a mutual fund’s holdings. Income in excess of the fund’s expenses must be paid as a dividend to shareholders at least once per year.
Capital gains and losses may be generated when a portfolio managers sells securities held by a mutual fund. Any realized gains that exceed realized losses are passed on to shareholders in the form of capital gain distributions and must be reported on your tax return (even if they are reinvested). These gains are classified as long or short-term gains and are taxed differently. A gain on the sale of an investment owned for one year or less is considered short-term for federal income tax purposes and is taxed as ordinary income. A gain on the sale of an investment owned for more than one year is considered long term for federal income tax purposes and taxed at long-term capital gains tax rates.
Tax law requires that mutual funds pay substantially all net investment income and net capital gains to their investors, who may elect to either receive cash or reinvest in additional shares of the fund. Net investment income and capital gain distributions are made annually in December. Additionally, certain funds may be subject to an additional distribution, referred to as a spillback distribution.
Spillback distributions are distributions of ordinary 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 9½ months (the fund’s extended tax return due date) of the end of the fund’s fiscal year. The extended tax return due dates are July 15th and October 15th for the September 30th and December 31st fiscal year end funds, respectively. Even though they represent ordinary income and/or capital gains earned by the fund in the previous fiscal year, they are taxable in the year in which they are paid.
No. Distributions do not impact total return. Although the NAV will drop when the distribution is paid, shareholders who reinvest their distributions will also receive more shares.
Shareholders are responsible for paying taxes on distributions they receive each year, whether they receive the distributions in cash or reinvest them in additional shares of the fund. The funds report distributions to shareholders on IRS Form 1099-DIV at the end of each calendar year. Certain types of fund accounts, such as Individual Retirement and 401(k) accounts, are tax-advantaged. Therefore, shareholders who own these types of accounts pay taxes, if any, on fund distributions only when money is withdrawn from the account and will receive different IRS reports. Please consult with your tax advisor.
Information about a fund’s realized and unrealized capital gains, including available capital loss carryforwards, can be found in the fund’s semi-annual and annual reports to shareholders. Realized and unrealized capital gains reported in the fund’s financial statements do not include all tax adjustments.
Capital gain estimates for the funds expected to pay capital gains in December will be posted to the website in early November.
Record Date: Shareholders who purchase fund shares before or on the record date (shareholders of record) are eligible to receive the distribution.
Ex-Date: The Fund’s NAV will be reduced by the amount of the distribution on this day. Shareholders who purchase fund shares on the ex-date are not eligible to receive the distribution.
Payable Date: Distributions will be paid to shareholders of record on this day. Shares are reinvested at the NAV per share on the ex-dividend date.
Please keep in mind that the information provided in the Tax Center is neither tax nor legal advice. You should speak to your tax professional for specific information regarding your tax situation.