Skip to content
Baron Funds Baron Capital
  • About
    • Who We Are
    • Investment Philosophy
    • ESG
    • History
    • Our Team
  • Products
    • All Funds
    • Fund Pricing & Performance
    • All Strategies
    • Strategy Performance
    • Daily Prices
    • Tax Center
    • Fund Pricing & Performance
    • Baron Emerging Markets Equity
    • Baron Global Advantage Equity
  • Insights & Reports
    • Insights & Commentary
    • Quarterly Reports
    • Baron Capital Portfolio Manager Webinar Series
    • Videos
    • Archives
  • News & Events
    • Conference
    • News
  • Contact Us
  • Daily Prices
  • Open an Account
  • Log In

View As:

  • Advisors
  • Institutions
  • Individuals
  • Non-U.S. Investors

Institutional Investors

Important Legal Information

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:

  • Government entities;
  • Sponsors, administrators or consultants of employee benefits plan with at least 100 participants. (This does not include any participants in the plan);
  • Qualified plans with at least 100 participants. (This does not include any participants in the plan);
  • Any person acting solely on behalf of an institutional investor;
  • FINRA member or registered person of such a member, and
  • Persons described in FINRA rule 4512(c) which defines "institutional accounts" to include:
  1. A bank, savings and loan association, insurance company, or registered investment company;
  2. An SEC or state securities commission - registered investment adviser; or
  3. Any other entity (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million.

If you do not fall within at least one of the above categories you should not access the information contained in the site.

By accessing this site you agree to be subject to the site's Terms of Use

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.

PLEASE CONFIRM

By selecting “I Agree” below, you confirm that you are an institutional investor or consultant to an institutional investor.

I AGREE

I DISAGREE

Non-U.S. Investors

Baron offers accredited non-U.S. investors and qualified tax-exempt U.S. investors a range of options for investing in the equity market. Our investment vehicles include SICAV funds, separate accounts, collective investment trusts, and Baron USA Partners Fund.

This website may not be suitable for everyone, and if you are at all unsure whether an investment product referenced on this website will meet your individual needs, please seek professional advice before proceeding further with such product. Nothing on this website is, or is intended to be, an offer, advice, or an invitation to buy or sell any investments, in any jurisdiction where, or to anyone whom it would be unlawful to do so. By clicking “I Agree” below you acknowledge that you have read and understood this important information. Information on this website is issued by Baron Capital, Inc.

If you are a non-U.S. investor or qualified tax-exempt U.S. investor interested in our non-U.S. investment products, please contact Stephen Millar, VP, Head of EMEA, Institutional Sales | +44(0)7769 958822 | smillar@baronfunds.com

 

PLEASE CONFIRM

By selecting “I Agree” below, you confirm that you are an accredited non-U.S. investor or a qualified tax-exempt U.S. investor.

I AGREE

I DISAGREE

User Experience Change

PLEASE CONFIRM

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.

Take me to see Mutual Funds

Cancel

Leaving Baron Funds

PLEASE CONFIRM

By selecting “I Agree” below, you confirm that you are aware that you are leaving baronfunds.com website.

 

The website expresses the viewpoints and opinions of third parties and not necessarily those of Baron Capital, Inc. Baron Capital does not guarantee its accuracy, completeness, or fairness.

I AGREE

I DISAGREE

Thank you

Thank you for your email. We will respond as soon as possible.

Close

  • Home
  • Tax Center -- Frequently Asked Questions

Tax Center -- Frequently Asked Questions

  • print page
  • share page
Share to twitter Share to linkedIn Share to facebook Access shareable link

WHAT IS A MUTUAL FUND DIVIDEND?

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.

WHAT IS A CAPITAL GAIN DISTRIBUTION?

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.

WHY AND WHEN DO MUTUAL FUNDS PAY DIVIDENDS AND DISTRIBUTIONS?

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.

WHAT IS 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.


DOES A FUND’S DISTRIBUTION AFFECT ITS TOTAL RETURN?

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.

WHO IS RESPONSIBLE FOR PAYING TAXES ON THESE DISTRIBUTIONS?

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.

WHERE CAN I FIND INFORMATION ABOUT A FUND’S REALIZED AND UNREALIZED CAPITAL GAINS?

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.

WHEN DO YOU POST CAPITAL GAIN DISTRIBUTION ESTIMATES TO THE WEBSITE?

Capital gain estimates for the funds expected to pay capital gains in December will be posted to the website in early November.

IMPORTANT DATES RELATED TO DISTRIBUTIONS

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.

  • View As:

    • Advisors
    • Institutions
    • Individuals
    • Non-U.S. Investors
  • ABOUT US

    • Investment Philosophy
    • History
    • ESG
  • PRODUCTS

    • Mutual Funds
    • Strategies
    • Fund Pricing & Performance
    • Tax Center
    • Daily Prices
  • INSIGHTS & REPORTS

    • Quarterly Report
    • Insights & Commentary
  • NEWS & EVENTS

    • Conference
    • Order a T-Shirt
    • T-Shirt Gallery
  • CAREERS

  • CONTACT US

  • Go Paperless

  • OPEN/MANAGE ACCOUNT

Subscribe for updates

© Baron 2023 All rights reserved

  • Regulatory Documents
  • FINRA Broker Check
  • Privacy Policy
  • Cookies
  • Terms & Conditions

Investment Products: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED

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).

  • About Us
  • Products
    • Overview
    • Fund Pricing & Performance
    • Strategy Performance
    • Tax Center
    • Daily Share Prices
    • Baron Emerging Markets Equity
    • Baron Global Advantage Equity
  • Insights & Reports
  • News & Events
  • Contact Us
  • Daily Prices
  • Open an Account
  • Log In

View as:

  • Advisors
  • Institutions
  • Individuals
  • Non-U.S. Investors