Prices & Performance

Prices

as of 04/08/20

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NAV Daily Change ($) Daily Change (%) MTD QTD YTD
$17.86 $0.77 4.51% 3.06% 3.06% -17.51%

Performance

 

as of 02/29/20

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QTD1 YTD1 1 Year 3 Years 5 Years Since Inception Expense Ratio2
Gross Net
BDFIX - Baron Discovery Fund - I -1.62% -1.62% 3.09% 16.76% 10.97% 14.30% 1.10% 1.10%
Russell 2000 Growth Index -8.24% -8.24% -0.72% 7.85% 6.48% 7.99%
S&P 500 Index -8.27% -8.27% 8.19% 9.87% 9.23% 11.44%

1Not annualized.

2Expense ratios are as of the fiscal year ended 9/30/2018

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, 2030, 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.

The Fund’s 5-year historical performance was impacted by gains from IPOs and/or secondary offerings, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs and secondary offerings will be the same in the future.

as of 03/31/20

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YTD1 1 Year 3 Years 5 Years Since Inception Expense Ratio2
Gross Net
BDFIX - Baron Discovery Fund - I -19.95% -15.18% 7.51% 6.22% 10.54% 1.10% 1.10%
Russell 2000 Growth Index -25.76% -18.58% 0.10% 1.70% 4.43%
S&P 500 Index -19.60% -6.98% 5.10% 6.73% 9.05%

1Not annualized.

2Expense ratios are as of the fiscal year ended 9/30/2018

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, 2030, 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.

The Fund’s 5-year historical performance was impacted by gains from IPOs and/or secondary offerings, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs and secondary offerings will be the same in the future.

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, 2030, 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.

The Fund’s 5-year historical performance was impacted by gains from IPOs and/or secondary offerings, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs and secondary offerings will be the same in the future.

Expense ratios are as of the fiscal year ended 9/30/2017

as of 03/31/20

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Year Baron Discovery Fund Russell 2000 Growth Index S&P 500 Index
2019 26.85% 28.48% 31.49%
2018 0.64% -9.31% -4.38%
2017 35.83% 22.17% 21.83%
2016 21.73% 11.32% 11.96%
2015 -14.53% -1.38% 1.38%
2014 13.80% 5.60% 13.69%
2013 16.70% 8.17% 10.51%

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, 2030, 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.

The Fund’s 5-year historical performance was impacted by gains from IPOs and/or secondary offerings, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs and secondary offerings will be the same in the future.

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Record Date Ex Date Payable Date Income Return of Capital Short-Term Capital Gain Long-Term Capital Gain Total Re-Invest NAV Calendar-Yr Return
11/25/2019 11/26/2019 11/27/2019 $0.0000 $0.0000 $0.0000 $0.0286 $0.0286 $21.42
11/28/2018 11/29/2018 11/30/2018 $0.0000 $0.0000 $0.0000 $1.5004 $1.5004 $19.33 0.64%
11/27/2017 11/28/2017 11/29/2017 $0.0377 $0.0000 $0.0000 $0.0000 $0.0377 $18.30 35.83%
06/27/2016 06/28/2016 06/29/2016 $0.0000 $0.0000 $0.0000 $0.2660 $0.2660 $11.35 21.73%

Performance Characteristics

as of 03/31/20

3 Years 5 Years Since Inception
Standard Deviation (%) 22.75 20.91 20.24
Sharpe Ratio 0.25 0.24 0.48
Alpha (%) 7.73 4.80 6.13
Beta 1.04 1.00 1.02
R-Squared (%) 89.69 84.24 84.38
Tracking Error (%) 7.35 8.30 8.01
Information Ratio 1.01 0.54 0.76
Upside Capture (%) 116.92 108.22 114.71
Downside Capture (%) 88.91 90.42 91.36

Except for Standard Deviation and Sharpe Ratio, the performance based-characteristics above were calculated relative to the Baron Discovery Fund's(BDFIX) benchmark Russell 2000 Growth Index. Performance statistics for additional periods will be provided on request. Source FactSet: SPAR.

 
NAV $17.86
Daily Change ($) $0.77
Daily Change (%) 4.51%
MTD 3.06%
QTD 3.06%
YTD -17.51%
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BDFIX - Baron Discovery Fund - I Russell 2000 Growth Index S&P 500 Index
QTD1 -1.62% -8.24% -8.27%
YTD1 -1.62% -8.24% -8.27%
1 Year 3.09% -0.72% 8.19%
3 Years 16.76% 7.85% 9.87%
5 Years 10.97% 6.48% 9.23%
Since Inception 14.30% 7.99% 11.44%
Expense Ratio2 - Gross 1.10%
Expense Ratio2 - Net 1.10%

*As of 02/29/20

*Annualized as of 03/31/20

1Not annualized.

2Expense ratios are as of the fiscal year ended 9/30/2018

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, 2030, 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.

The Fund’s 5-year historical performance was impacted by gains from IPOs and/or secondary offerings, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs and secondary offerings will be the same in the future.

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BDFIX - Baron Discovery Fund - I Russell 2000 Growth Index S&P 500 Index
YTD1 -19.95% -25.76% -19.60%
1 Year -15.18% -18.58% -6.98%
3 Years 7.51% 0.10% 5.10%
5 Years 6.22% 1.70% 6.73%
Since Inception 10.54% 4.43% 9.05%
Expense Ratio2 - Gross 1.10%
Expense Ratio2 - Net 1.10%

*As of 03/31/20

*Annualized as of 03/31/20

1Not annualized.

2Expense ratios are as of the fiscal year ended 9/30/2018

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, 2030, 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.

The Fund’s 5-year historical performance was impacted by gains from IPOs and/or secondary offerings, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs and secondary offerings will be the same in the future.

as of 03/31/20

3 Years 5 Years Since Inception
Standard Deviation (%) 22.75 20.91 20.24
Sharpe Ratio 0.25 0.24 0.48
Alpha (%) 7.73 4.80 6.13
Beta 1.04 1.00 1.02
R-Squared (%) 89.69 84.24 84.38
Tracking Error (%) 7.35 8.30 8.01
Information Ratio 1.01 0.54 0.76
Upside Capture (%) 116.92 108.22 114.71
Downside Capture (%) 88.91 90.42 91.36

Except for Standard Deviation and Sharpe Ratio, the performance based-characteristics above were calculated relative to the Baron Discovery Fund's(BDFIX) benchmark Russell 2000 Growth Index. Performance statistics for additional periods will be provided on request. Source FactSet: SPAR.

as of 03/31/20

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Year Baron Discovery Fund Russell 2000 Growth Index S&P 500 Index
2019 26.85% 28.48% 31.49%
2018 0.64% -9.31% -4.38%
2017 35.83% 22.17% 21.83%
2016 21.73% 11.32% 11.96%
2015 -14.53% -1.38% 1.38%
2014 13.80% 5.60% 13.69%
2013 16.70% 8.17% 10.51%

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, 2030, 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.

The Fund’s 5-year historical performance was impacted by gains from IPOs and/or secondary offerings, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs and secondary offerings will be the same in the future.

Select Year
Record Date 11/25/2019 11/28/2018 11/27/2017 06/27/2016
Ex Date 11/26/2019 11/29/2018 11/28/2017 06/28/2016
Payable Date 11/27/2019 11/30/2018 11/29/2017 06/29/2016
Income $0.0000 $0.0000 $0.0377 $0.0000
Return of Capital $0.0000 $0.0000 $0.0000 $0.0000
Short-Term Capital Gain $0.0000 $0.0000 $0.0000 $0.0000
Long-Term Capital Gain $0.0286 $1.5004 $0.0000 $0.2660
Total $0.0286 $1.5004 $0.0377 $0.2660
Re-Invest NAV $21.42 $19.33 $18.30 $11.35
Calendar-Yr Return 0.64% 35.83% 21.73%

Portfolio Characteristics

 

as of 03/31/20

Baron Discovery Fund Russell 2000 Growth Index
Net Assets$479.88 million
# of Equity Securities / % of Net Assets60 / 90.0%
Turnover (3 Year Average)61.42%
Active Share92.6%
Median Market Cap$1.21 billion$0.61 billion
Weighted Average Market Cap$2.37 billion$2.39 billion
EPS Growth (3-5 year forecast)18.1%13.5%
Price/Earnings Ratio (trailing 12-month)39.617.0
Price/Book Ratio3.42.7
Price/Sales Ratio2.31.1
Current Expense Ratio Date9/30/2019

The Net Assets include all share classes combined.

Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.

Holdings

as of 03/31/20

Open All Close All Holding Sector % of Net Assets

Kinsale Capital Group, Inc.

Kinsale Capital Group, Inc. (KNSL) is a property and casualty insurance carrier focused exclusively on the excess and surplus (E&S) lines market, which includes risks that are unique or hard to place in the standard insurance market.
We believe Kinsale is a well run insurer that should grow book value per share faster than its peers. Its small size and low-cost technology platform give Kinsale the ability to achieve rapid premium growth while delivering industry leading underwriting margins. Management is highly regarded, has decades of experience in the E&S market, and previously ran a successful insurer that was sold at a premium valuation. We believe Kinsale has a long runway for growth in an attractive segment of the P&C insurance market.

Financials 4.0%

Emergent BioSolutions Inc.

Emergent BioSolutions Inc. (EBS) specializes in vaccines and treatments against exposure to the worst biological and viral strains, including anthrax, smallpox, and botulism. It also markets commercial products to protect travelers against cholera and typhoid and a nasal spray antidote for opioid overdoses.
Emergent's anthrax and smallpox vaccines are currently being stocked by the U.S. government. The stocks need to be refreshed every four to five years on a rolling basis due to shelf life, providing recurring revenues. Beyond this, Emergent is working to broaden its base of products to auto-injectors, contract manufacturing, and other vaccines and treatments. It has an active M&A program and is one of the few, if not the only, supplier of many of its products.

Health Care 3.5%

Mercury Systems, Inc.

Mercury Systems, Inc. (MRCY) designs, manufactures, and markets high-performance, embedded, real-time digital signal and image processing systems and software. Its customers are Tier-1 defense contractors worldwide.
We believe Mercury is uniquely positioned to sell high-speed computing and storage subsystems to nearly all large U.S. defense contractors. Its products, which allow customers to more rapidly and cheaply develop their own solutions, are used to acquire sensor data, digitize and process the data, and then deliver it for analysis and interpretation. We think at least $10 billion of internal Tier-1 business can be outsourced in addition to the current market for outsourced defense electronics of about $2 to $2.5 billion, providing Mercury with a multi-year growth opportunity.

Industrials 3.4%

Americold Realty Trust

Americold Realty Trust (COLD) is the world’s largest owner of temperature-controlled warehouses. Americold’s warehouses enable “farm to fork” distribution and ensure freshness, safety, and convenience. The company’s market share is roughly 20% in the U.S. and 4.5% globally, serving over 2,600 customers.
Americold operates in a relatively stable industry, since food consumption is tied to population growth and cold storage is essential for food distribution. Its proprietary data systems are a competitive advantage, in our view. Management believes cash flow could grow by high single digits per year, an attractive rate compared with other REITs. Large acquisitions could also drive growth. We believe the company’s valuation is attractive, its growth prospects are solid, and it benefits from being in a less cyclical business.

Real Estate 3.3%

Qualys, Inc.

Qualys, Inc. (QLYS) provides information technology security risk and compliance management solutions. The company offers cloud-based software products for vulnerability management, policy compliance, web application scanning, malware detection, and associated security products.
Qualys delivers cloud-based network security services. It has over 10,300 accounts, including most of the Fortune 100, which generate recurring subscription revenues. Revenue renewal rates are consistently high. It is leveraging its trusted position in Vulnerability Management to introduce new products, including cloud agents, Web Application Scanning, Web Application Firewall, malware protection, and mobile device security. We believe new products will accelerate top-line growth and expand the company's total addressable market from $700 million to the multi-billions.

Information Technology 3.2%

Inogen, Inc.

Inogen, Inc. (INGN) is a medtech company that develops, manufactures, and markets innovative portable oxygen concentrators for use by chronic respiratory patients who are reliant on long-term oxygen therapy. Inogen's lightweight, long battery life models allow patients more mobility and lifestyle flexibility.
Inogen is the leading global manufacturer of portable oxygen concentrators as measured by dollar volume and the only company to offer a direct-to-consumer strategy in the U.S. Portable oxygen concentrators represent the fastest growing segment of the Medicare oxygen therapy market, given its life style advantages. Inogen's low 4-5% penetration should continue to expand at the expense of stationary devices, in our view. We believe this is a disruptive business model that has the potential to dislodge much larger competitors who have been built around a distribution model.

Health Care 3.1%

SiteOne Landscape Supply, Inc.

SiteOne Landscape Supply, Inc. (SITE) is the largest wholesale distributor of landscape supplies in the U.S. Through its network of over 550 branches in 45 states, the company offers a broad selection of products such as irrigation supplies, herbicides, landscape accessories, and outdoor lighting.
SiteOne is a market leader with exposure to residential and non-residential construction cycles. With 11% of a large fragmented market and an experienced management team with a strong M&A track record, the company has significant opportunities to consolidate the industry through accretive deals. The core wholesale landscape market is growing faster than GDP, with consumers investing in surrounding landscapes as extensions of their homes. SiteOne is also investing in new initiatives to increase the productivity of its sales force and in-store associates and expand margins.

Industrials 2.9%

Everbridge, Inc.

Information Technology 2.8%

Endava plc

Endava plc (DAVA) provides outsourced software development to business customers.
Endava benefits from growing demand for IT services from businesses around the world. The company's competitive differentiation comes from its ability to hire and retain highly skilled, low-cost software engineers primarily in Eastern Europe. Endava's strong technical capabilities and differentiated labor pool enable the company to work on higher-value client projects with better pricing power than peers. We believe Endava will continue gaining share in a large, growing market by adding new clients and increasing wallet share with existing clients.

Information Technology 2.7%

Veracyte, Inc.

Veracyte, Inc. (VCYT) is a leading genomic diagnostics company that allows physicians to make diagnosis and treatment decisions for thyroid cancer, lung cancer, and idiopathic pulmonary fibrosis without expensive, invasive biopsy procedures.
Veracyte uses advanced genomic technology, clinical science, and machine learning in its tests, which are highly accurate and the leaders in every category. The company has around $2 billion of current available market opportunity, and has the potential to bring more tests to market based on its extensive genomic database.

Health Care 2.6%

Total

31.5%

Top Ten Fund Holdings based on net assets. Portfolio holdings may change over time.

as of 03/31/20

Name Sector % of Net Assets

Kinsale Capital Group, Inc.

Financials 4.0%

Emergent BioSolutions Inc.

Health Care 3.5%

Mercury Systems, Inc.

Industrials 3.4%

Americold Realty Trust

Real Estate 3.3%

Qualys, Inc.

Information Technology 3.2%

Inogen, Inc.

Health Care 3.1%

SiteOne Landscape Supply, Inc.

Industrials 2.9%

Everbridge, Inc.

Information Technology 2.8%

Endava plc -ADR

Information Technology 2.7%

Rexford Industrial Realty, Inc.

Real Estate 2.6%

Veracyte, Inc.

Health Care 2.6%

Floor & Decor Holdings, Inc.

Consumer Discretionary 2.5%

CareDx, Inc.

Health Care 2.3%

Silk Road Medical, Inc.

Health Care 2.3%

TPI Composites, Inc.

Industrials 2.2%

Ping Identity Corporation

Information Technology 2.0%

Varonis Systems, Inc.

Information Technology 1.9%

Trex Company, Inc.

Industrials 1.8%

Repay Holdings Corporation Cl - A

Information Technology 1.8%

Helios Technologies, Inc.

Industrials 1.8%

Kratos Defense & Security

Industrials 1.8%

Revance Therapeutics, Inc.

Health Care 1.6%

Cerus Corporation

Health Care 1.5%

Nova Measuring Instruments Ltd.

Information Technology 1.5%

Axonics Modulation Technologies, Inc.

Health Care 1.4%

ESCO Technologies, Inc.

Industrials 1.4%

Teladoc Health Inc.

Health Care 1.4%

Ollie's Bargain Outlet Holdings, Inc.

Consumer Discretionary 1.3%

Dynatrace, Inc.

Information Technology 1.3%

BRP Group, Inc.

Financials 1.3%

Progyny, Inc.

Health Care 1.2%

Tactile Systems Technology, Inc.

Health Care 1.2%

Future plc

Communication Services 1.2%

S4 Capital plc

Communication Services 1.2%

Kornit Digital Ltd.

Industrials 1.2%

Esperion Therapeutics, Inc.

Health Care 1.2%

AxoGen, Inc.

Health Care 1.1%

ViewRay Incorporated

Health Care 1.0%

Liberty Media Corp. - Liberty Formula One Cl A

Communication Services 1.0%

Red Rock Resorts, Inc. - Cl. A

Consumer Discretionary 1.0%

Medallia Inc.

Information Technology 1.0%

Biohaven Pharmaceutical Holding Compnay Ltd.

Health Care 1.0%

Advanced Energy Industries, Inc.

Information Technology 0.9%

TherapeuticsMD, Inc.

Health Care 0.8%

Penn National Gaming, Inc.

Consumer Discretionary 0.8%

Raven Industries Inc

Industrials 0.8%

Ichor Holdings, Ltd.

Information Technology 0.8%

Yext, Inc.

Information Technology 0.7%

Sientra, Inc.

Health Care 0.7%

Inspire Medical Systems, Inc.

Health Care 0.6%

Applied Therapeutics, Inc.

Health Care 0.6%

Bill.com Holdings, Inc.

Information Technology 0.5%

Par Technology Corp/Del

Information Technology 0.5%

Diamond Eagle Acquisition Corp. - Cl A

Unclassified 0.5%

The RealReal, Inc.

Consumer Discretionary 0.4%

Accelerate Diagnostics Inc

Health Care 0.3%

Novanta Inc.

Information Technology 0.2%

Wingstop Inc.

Consumer Discretionary 0.2%

Barfresh Food Group, Inc.

Consumer Staples 0.1%

Limoneira Co

Consumer Staples 0.1%

Barfresh Food Group, Inc. Restricted

Consumer Staples 0.0%

GICS SECTOR BREAKDOWN

As of 03/31/20

As of 03/31/20

Colors of Sub-Industry bars correspond to the GICS sector chart.

Contributors/Detractors

Quarterly as of 12/31/19

Top Contributors Average Weight Contribution
Progyny, Inc. 1.12% 0.97%
Esperion Therapeutics, Inc. 1.50% 0.79%
Sientra, Inc. 1.97% 0.73%
SiteOne Landscape Supply, Inc. 2.79% 0.65%
Ichor Holdings, Ltd. 1.62% 0.57%

Quarterly as of 12/31/19

Top Detractors Average Weight Contribution
TherapeuticsMD, Inc. 1.91% -0.85%
Mercury Systems, Inc. 2.98% -0.55%
ForeScout Technologies, Inc. 1.86% -0.37%
Myriad Genetics, Inc. 0.66% -0.37%
Cerus Corporation 1.21% -0.31%

Source: FactSet PA.

Insights & News

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.

Risks: Specific risks associated with investing in smaller companies include that the securities may be thinly traded and more difficult to sell during market downturns. Even though the Fund is diversified, it may establish significant positions where the Adviser has the greatest conviction. This could increase volatility of the Fund's returns.
 

The Fund may not achieve its objectives.

Definitions (provided by BAMCO, Inc.): The indexes are unmanaged. The Russell 2000® Growth Index measures the performance of small-sized U.S. companies that are classified as growth and the S&P 500 Index of 500 widely held large-cap U.S. companies. The indexes and the Fund are with dividends, which positively impact the performance results. Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell is a trademark of Russell Investment Group. Index performance is not fund performance. Investors cannot invest directly in an index.

Definitions (provided by BAMCO, Inc.): Standard Deviation: measures the degree to which a fund’s performance has varied from its average performance over a particular time period. The greater the standard deviation, the greater a fund’s volatility (risk). Sharpe Ratio: is a risk-adjusted performance statistic that measures reward per unit of risk. The higher the Sharpe ratio, the better a fund’s risk adjusted performance. Alpha: measures the difference between a fund’s actual returns and its expected performance, given its level of risk as measured by beta. Beta: measures a fund’s sensitivity to market movements. The beta of the market is 1.00 by definition. R-Squared: measures how closely a fund’s performance correlates to the performance of the benchmark index, and thus is a measurement of what portion of its performance can be explained by the performance of the index. Values for R-Squared range from 0 to 100, where 0 indicates no correlation and 100 indicates perfect correlation. Tracking Error: measures how closely a fund’s return follows the benchmark index returns. It is calculated as the annualized standard deviation of the difference between the fund and the index returns. Information Ratio: measures the excess return of a fund divided by the amount of risk the fund takes relative to the benchmark index. The higher the information ratio, the higher the excess return expected of the fund, given the amount of risk involved. Upside Capture: explains how well a fund performs in time periods where the benchmark’s returns are greater than zero. Downside Capture: explains how well a fund performs in time periods where the benchmark’s returns are less than zero

Definitions (provided by Baron Capital, Inc.): EPS Growth Rate (3-5 Year): indicates the long-term forecasted EPS growth of the companies in the portfolio, calculated using the weighted average of the available 3-to-5 year forecasted growth rates for each of the stocks in the portfolio provided by Factset Estimates. The EPS Growth rate does not forecast the Fund’s performance. Price/ Earnings Ratio (trailing 12-months): is a valuation ratio of a company’s current share price compared to its actual earnings per share over the last twelve months. Price/Book Ratio: is a ratio used to compare a company’s stock price to its tangible assets, and it is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share. Price/Sales Ratio: is a valuation ratio of a stock’s price relative to its past performance. It represents the amount an investor is willing to pay for a dollar generated from a particular company’s operations. Price/Sales is calculated by dividing a stock’s current price by its revenue per share for the last 12 months. Weighted Harmonic Average: is a calculation that reduces the impact of extreme observation on the aggregate calculation by weighting them based on their size in the fund. Active Share is a term used to describe the share of a portfolio’s holdings that differ from that portfolio’s benchmark index. It is calculated by comparing the weight of each holding in the Fund to that holding’s weight in the benchmark. Positions with either a positive or negative weighting versus the benchmark have Active Share. An Active Share of 100% implies zero overlap with the benchmark. Active Share was introduced in 2006 in a study by Yale academics, M. Cremers and A. Petajisto, as a measure of active portfolio management.

One year turnover information to the most recent quarter and average market cap (unweighted) is available upon request.

Industry sector or sub-industry group levels are provided from the Global Industry Classification Standard (“GICS”), developed and exclusively owned by MSCI, Inc. (“MSCI”) and Standard & Poor’s Financial Services LLC (“S&P”). All GICS data is provided “as is” with no warranties.  The Adviser may have reclassified/classified certain securities in or out of a sub-industry.  Such reclassifications are not supported by S&P or MSCI.