Prices & Performance

Prices

as of 02/20/19

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NAV Daily Change ($) Daily Change (%) MTD QTD YTD
$24.56 $0.04 0.16% 4.38% 18.25% 18.25%

Performance

 

as of 01/31/19

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QTD1 YTD1 1 Year 3 Years 5 Years Since Inception Expense Ratio2
Gross Net
BREFX - Baron Real Estate Fund 13.29% 13.29% -14.63% 8.37% 4.93% 12.46% 1.32% 1.32%
MSCI USA IMI Extended Real Estate Index 11.03% 11.03% -1.81% 10.24% 8.90% 11.91%
MSCI US REIT Index 11.72% 11.72% 9.85% 6.57% 7.93% 10.40%
S&P 500 Index 8.01% 8.01% -2.31% 14.02% 10.96% 12.56%

1Not annualized.

2Expense ratios are as of the fiscal year ended 12/31/2017

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 Fund's transfer agency expenses may be reduced by the 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 above.

as of 12/31/18

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1 Year 3 Years 5 Years Since Inception Expense Ratio2
Gross Net
BREFX - Baron Real Estate Fund -22.22% -0.04% 2.12% 11.03% 1.32% 1.32%
MSCI USA IMI Extended Real Estate Index -10.73% 4.48% 6.59% 10.74%
MSCI US REIT Index -5.83% 1.53% 6.43% 9.14%
S&P 500 Index -4.38% 9.26% 8.49% 11.73%

1Not annualized.

2Expense ratios are as of the fiscal year ended 12/31/2017

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 Fund's transfer agency expenses may be reduced by the 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 above.

1Not annualized.

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 Fund's transfer agency expenses may be reduced by the 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 above.

Expense ratios are as of the fiscal year ended 12/31/2017

as of 01/31/19

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Year Baron Real Estate Fund MSCI USA IMI Extended Real Estate Index MSCI US REIT Index S&P 500 Index
2018 -22.22% -10.73% -5.83% -4.38%
2017 31.04% 18.04% 3.74% 21.83%
2016 -2.01% 8.24% 7.14% 11.96%
2015 -4.65% 2.27% 1.28% 1.38%
2014 16.61% 17.96% 28.82% 13.69%
2013 27.12% 17.44% 1.26% 32.39%
2012 42.60% 27.00% 16.47% 16.00%
2011 0.63% -2.26% 7.48% 2.11%
2010 26.60% 24.81% 26.98% 15.06%

1Not annualized.

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 Fund's transfer agency expenses may be reduced by the 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 above.

Expense ratios are as of the fiscal year ended 12/31/2017

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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
11/28/2018 11/29/2018 11/30/2018 $0.000 $0.000 $0.000 $2.063 $2.063 $22.90
09/24/2018 09/25/2018 09/26/2018 $0.000 $0.000 $0.000 $0.437 $0.437 $27.12
11/27/2017 11/28/2017 11/29/2017 $0.000 $0.000 $0.000 $1.412 $1.412 $29.06 31.04%
10/05/2016 10/06/2016 10/07/2016 $0.000 $0.000 $0.000 $0.082 $0.082 $23.29 -2.01%
12/02/2015 12/03/2015 12/04/2015 $0.000 $0.000 $0.000 $0.458 $0.458 $24.56 -4.65%
09/23/2015 09/24/2015 09/25/2015 $0.011 $0.000 $0.000 $0.011 $0.022 $24.29 -4.65%
12/01/2014 12/02/2014 12/03/2014 $0.026 $0.000 $0.000 $0.000 $0.026 $25.46 16.61%
09/25/2013 09/26/2013 09/27/2013 $0.000 $0.000 $0.006 $0.015 $0.020 $20.46 27.12%
11/28/2012 11/29/2012 11/30/2012 $0.000 $0.000 $0.193 $0.113 $0.306 $16.81 42.60%
11/28/2011 11/29/2011 11/30/2011 $0.000 $0.000 $0.000 $0.092 $0.092 $11.52 0.63%
09/07/2011 09/08/2011 09/09/2011 $0.004 $0.000 $0.111 $0.006 $0.121 $11.75 0.63%

as of 01/31/19

Yields — SCT Shares | BREFX  
Unsubsidized SEC 30-Day Yield 0.16%
Subsidized SEC 30-Day Yield 0.16%
Distribution Yield 0.00%

SEC 30- Day Yield is a standard yield calculation developed by the Securities and Exchange Commission for bond funds. The yield is calculated by dividing the net investment income per share earned during the 30-day period by the maximum offering price per share on the last day of the period. The yield figure reflects the dividends and interest earned during the 30-day period, after the deduction of the fund's expenses and includes any applicable waiver or reimbursement. Absent such waivers or reimbursements, the returns would have been lower. It is sometimes referred to as "SEC 30-Day Yield" or "standardized yield”.

SEC 30-Day Subsidized Yield (%) is a standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the fund's net expenses (net of any expense waivers or reimbursements).

SEC 30-Day Unsubsidized Yield (%) is a standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the fund's gross expenses.

Distribution Yield is interest and dividend payments the fund is currently paying. Distribution yields fluctuate and are not guaranteed.

Performance Characteristics

as of 12/31/18

3 Years 5 Years Since Inception
Standard Deviation (%) 15.59 14.81 16.32
Sharpe Ratio -0.07 0.10 0.65
Alpha (%) -4.54 -4.70 0.13
Beta 1.12 1.12 1.04
R-Squared (%) 83.85 83.50 85.31
Tracking Error (%) 6.44 6.20 6.28
Information Ratio -0.70 -0.72 0.05
Upside Capture (%) 91.48 94.59 102.95
Downside Capture (%) 119.54 124.73 103.04

Except for Standard Deviation and Sharpe Ratio, the performance based-characteristics above were calculated relative to the Baron Real Estate Fund's(BREFX) benchmark (MSCI USA IMI Extended Real Estate Index). Performance statistics for additional periods will be provided on request. Source FactSet: SPAR.

 
NAV $24.56
Daily Change ($) $0.04
Daily Change (%) 0.16%
MTD 4.38%
QTD 18.25%
YTD 18.25%
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BREFX - Baron Real Estate Fund MSCI USA IMI Extended Real Estate Index MSCI US REIT Index S&P 500 Index
QTD1 13.29% 11.03% 11.72% 8.01%
YTD1 13.29% 11.03% 11.72% 8.01%
1 Year -14.63% -1.81% 9.85% -2.31%
3 Years 8.37% 10.24% 6.57% 14.02%
5 Years 4.93% 8.90% 7.93% 10.96%
Since Inception 12.46% 11.91% 10.40% 12.56%
Expense Ratio2 - Gross 1.32%
Expense Ratio2 - Net 1.32%

*As of 01/31/19

*Annualized as of 01/31/19

1Not annualized.

2Expense ratios are as of the fiscal year ended 12/31/2017

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 Fund's transfer agency expenses may be reduced by the 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 above.

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BREFX - Baron Real Estate Fund MSCI USA IMI Extended Real Estate Index MSCI US REIT Index S&P 500 Index
1 Year -22.22% -10.73% -5.83% -4.38%
3 Years -0.04% 4.48% 1.53% 9.26%
5 Years 2.12% 6.59% 6.43% 8.49%
Since Inception 11.03% 10.74% 9.14% 11.73%
Expense Ratio2 - Gross 1.32%
Expense Ratio2 - Net 1.32%

*As of 12/31/18

*Annualized as of 01/31/19

1Not annualized.

2Expense ratios are as of the fiscal year ended 12/31/2017

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 Fund's transfer agency expenses may be reduced by the 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 above.

as of 12/31/18

3 Years 5 Years Since Inception
Standard Deviation (%) 15.59 14.81 16.32
Sharpe Ratio -0.07 0.10 0.65
Alpha (%) -4.54 -4.70 0.13
Beta 1.12 1.12 1.04
R-Squared (%) 83.85 83.50 85.31
Tracking Error (%) 6.44 6.20 6.28
Information Ratio -0.70 -0.72 0.05
Upside Capture (%) 91.48 94.59 102.95
Downside Capture (%) 119.54 124.73 103.04

Except for Standard Deviation and Sharpe Ratio, the performance based-characteristics above were calculated relative to the Baron Real Estate Fund's(BREFX) benchmark (MSCI USA IMI Extended Real Estate Index). Performance statistics for additional periods will be provided on request. Source FactSet: SPAR.

as of 01/31/19

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Year Baron Real Estate Fund MSCI USA IMI Extended Real Estate Index MSCI US REIT Index S&P 500 Index
2018 -22.22% -10.73% -5.83% -4.38%
2017 31.04% 18.04% 3.74% 21.83%
2016 -2.01% 8.24% 7.14% 11.96%
2015 -4.65% 2.27% 1.28% 1.38%
2014 16.61% 17.96% 28.82% 13.69%
2013 27.12% 17.44% 1.26% 32.39%
2012 42.60% 27.00% 16.47% 16.00%
2011 0.63% -2.26% 7.48% 2.11%
2010 26.60% 24.81% 26.98% 15.06%

1Not annualized.

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 Fund's transfer agency expenses may be reduced by the 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 above.

Expense ratios are as of the fiscal year ended 12/31/2017

Select Year
Record Date 11/28/2018 09/24/2018 11/27/2017 10/05/2016 12/02/2015 09/23/2015 12/01/2014 09/25/2013 11/28/2012 11/28/2011 09/07/2011
Ex Date 11/29/2018 09/25/2018 11/28/2017 10/06/2016 12/03/2015 09/24/2015 12/02/2014 09/26/2013 11/29/2012 11/29/2011 09/08/2011
Payable Date 11/30/2018 09/26/2018 11/29/2017 10/07/2016 12/04/2015 09/25/2015 12/03/2014 09/27/2013 11/30/2012 11/30/2011 09/09/2011
Income $0.000 $0.000 $0.000 $0.000 $0.000 $0.011 $0.026 $0.000 $0.000 $0.000 $0.004
Return of Capital $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000
Short-Term Capital Gain $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.006 $0.193 $0.000 $0.111
Long-Term Capital Gain $2.063 $0.437 $1.412 $0.082 $0.458 $0.011 $0.000 $0.015 $0.113 $0.092 $0.006
Total $2.063 $0.437 $1.412 $0.082 $0.458 $0.022 $0.026 $0.020 $0.306 $0.092 $0.121
Re-Invest NAV $22.90 $27.12 $29.06 $23.29 $24.56 $24.29 $25.46 $20.46 $16.81 $11.52 $11.75
Calendar-Yr Return 31.04% -2.01% -4.65% -4.65% 16.61% 27.12% 42.60% 0.63% 0.63%

as of 01/31/19

Yields — SCT Shares | BREFX  
Unsubsidized SEC 30-Day Yield 0.16%
Subsidized SEC 30-Day Yield 0.16%
Distribution Yield 0.00%

SEC 30- Day Yield is a standard yield calculation developed by the Securities and Exchange Commission for bond funds. The yield is calculated by dividing the net investment income per share earned during the 30-day period by the maximum offering price per share on the last day of the period. The yield figure reflects the dividends and interest earned during the 30-day period, after the deduction of the fund's expenses and includes any applicable waiver or reimbursement. Absent such waivers or reimbursements, the returns would have been lower. It is sometimes referred to as "SEC 30-Day Yield" or "standardized yield”.

SEC 30-Day Subsidized Yield (%) is a standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the fund's net expenses (net of any expense waivers or reimbursements).

SEC 30-Day Unsubsidized Yield (%) is a standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the fund's gross expenses.

Distribution Yield is interest and dividend payments the fund is currently paying. Distribution yields fluctuate and are not guaranteed.

Portfolio Characteristics

 

as of 12/31/18

Baron Real Estate Fund MSCI USA IMI Extended Real Estate Index
Net Assets$543.20 million
# of Equity Securities / % of Net Assets41 / 100.4%
Turnover (3 Year Average)52.18%
Active Share72.8%
Median Market Cap$9.32 billion$2.05 billion
Weighted Average Market Cap$26.78 billion$38.95 billion
EPS Growth (3-5 year forecast)16.2%10.5%
Price/Earnings Ratio (trailing 12-month)16.417.0
Price/Book Ratio2.21.8
Price/Sales Ratio1.71.9
Current Expense Ratio Date12/31/2017

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 01/31/19

Open All Close All Holding Sector % of Net Assets

CBRE Group, Inc.

CBRE Group, Inc. (CBG) is a leading commercial real estate services company with the number one market share in all of its major businesses.
We believe CBRE will gain meaningfully from the recovery in the commercial real estate industry. Its leasing and investment sales units have high incremental margins, and we believe its profitability will improve with healthier end markets. We also believe the market underappreciates the value associated with CBRE’s property management unit, given its growing, highly recurring revenue stream and open-ended growth prospects. CBRE is also one of the world’s leading managers of real estate assets.

Real Estate 6.6%

Equinix, Inc.

Equinix, Inc. (EQIX) is a network neutral operator of 200 data centers across 52 metros and 24 countries in North America, Europe, and Asia-Pacific. It provides highly reliable facilities and offers low latency interconnection to and among business partners, networks, and cloud service providers.
We believe Equinix continues to benefit from a number of key long-term trends, including growth in internet traffic, IT outsourcing, cloud computing, and mobility. Equinix began operating as a REIT in early 2015 and, with the improved cost of capital, announced several strategic global acquisitions (doubling topline from 2015 to 2018). We believe these acquisitions will create meaningful synergies and further enhance Equinix's global platform. We also believe Equinix can continue to outgrow the market organically and supplement growth with prudent acquisitions.

Real Estate 5.3%

MGM Resorts International

MGM Resorts International (MGM) is a casino hospitality company with properties in Macau, Las Vegas, and other regions across the U.S. 80% of its EBITDA is in the U.S., while 20% is from Macau. The company owns a 74.5% stake in gaming REIT MGM Growth Properties and a 56% stake in MGM China.
MGM Resorts has an attractive pipeline of projects, in our view, with ongoing upgrades to its recently opened casino in Massachusetts and the completion of its redeveloped Park MGM casino in Las Vegas. Combined with a recovery in Macau, these projects should add significant value over time, in our view. While the company is levered, we believe it will lower leverage organically as the new projects open and continue to return capital to shareholders through increased dividends and share buybacks.

Consumer Discretionary 5.2%

American Tower Corp.

American Tower Corp. (AMT) is the largest independent wireless tower operator worldwide, with close to 170,000 towers in 13 countries on five continents.
Increasing demand for wireless voice and data coverage is driving leasing activity for wireless carriers. Because zoning for new towers is difficult to obtain, leasing on an existing tower (tenant colocation) is typically the best option. American Tower has been expanding internationally, bringing the U.S. tower model to new markets. We expect new tenants and higher colocation activity to drive continued strong organic cash flow growth. In addition, we believe American Tower will continue to acquire tower portfolios opportunistically.

Real Estate 5.1%

InterXion Holding N.V.

InterXion Holding N.V. (INXN) is a European provider of cloud and carrier-neutral colocation data center services. It has 55 data centers across 13 cities in 11 countries, over 132,000 square meters of equipped space, and 1,800 customers.
With its expansive, pan-European footprint, we think InterXion is well positioned to benefit from strong secular tailwinds as the European market is still in the early stages of cloud adoption and IT outsourcing, roughly two years behind the U.S. InterXion has a sticky customer base with low churn and network effects and 95% recurring revenue. In our view, it also benefits from significant barriers to entry, as it takes three to four years to plan, permit, and build a data center.

Information Technology 4.7%

Norwegian Cruise Line Holdings, Ltd.

Norwegian Cruise Line Holdings, Ltd. (NCLH) is a global cruise line operator with itineraries in North America, the Mediterranean, the Baltics, Central America, Bermuda, and the Caribbean. It is the smallest of the three big cruise lines, with 25 ships under the Norwegian, Oceania and Regent brands.
The industry is still underpenetrated and while capacity is accelerating from 5% to 7% the next few years, it is not impacting net yields. We think Norwegian should benefit the most from this new supply, as it has a new ship coming online every year through 2027. These new ships command higher pricing and help further increase net yields, which are already at peak levels. In our view, this should lead to stronger margins and higher cash flow, which can be invested in new ships, used to pay down debt, or returned to investors through dividends and share repurchases.

Consumer Discretionary 4.5%

Brookfield Asset Management, Inc.

Brookfield Asset Management, Inc. (BAM) is a leading global alternative asset manager and one of the largest investors in real assets. Brookfield focuses on real estate, renewable power, infrastructure, and private equity assets.
Brookfield's underling assets generate high levels of predictable and sustainable cash flows, require minimal capital expenditures, and have solid barriers to entry, in our view. Growth opportunities include: 1) ability to further scale its asset management business (35-40% of the value); 2) increased occupancy in office assets; 3) new development opportunities in water infrastructure (desalination, irrigation, etc.) and technology infrastructure assets (fiber, cell phone towers, smart city sensors); and 4) additional platform acquisitions.

Financials 3.6%

Boyd Gaming Corporation

Boyd Gaming Corporation (BYD) is a gaming operator with 24 properties in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, and Mississippi. The Las Vegas market contributes to 45% of Boyd’s EBITDA, while regional assets account for the rest.
Over the past few years, the company has introduced several programs to lower its cost structure and improve its margins. These programs have resulted in margin improvement of 250 basis points in the past two years, and management believes there is potential for generating an additional 250 to 300 basis points. The company has also successfully refinanced $3 billion of debt and increased its cash flow, which we think will continue to grow with recently completed acquisitions. Management has indicated it will use the cash to increase dividends and repurchase stock.

Consumer Discretionary 3.3%

Royal Caribbean Cruises Ltd.

Royal Caribbean Cruises Ltd. (RCL) is a global cruise operator with itineraries in North America, the Mediterranean, the Baltics, and Asia. It has 49 ships and plans to bring on a new ship every year for at least the next four years.
Industry capacity is in the process of slowing from 7% growth over the past decade to 5% through 2020. We think Royal should benefit from this low supply, as it has a new ship coming online every year through 2020. We believe these new ships will command higher pricing and help further increase net yields, which are still 10% below peak levels. Combined with lower fuel prices, we think this should lead to stronger margins and higher cash flow, which can be invested in new ships or returned to investors through dividends and share repurchases.

Consumer Discretionary 3.3%

Marriott Vacations Worldwide Corp.

Marriott Vacations Worldwide Corp. (VAC) sells timeshare products, manages resorts, finances consumer purchases, and rents timeshare inventory. It has 100 timeshare resorts in the U.S and recently completed its acquisition of Interval Leisure that should set the company up for accelerated growth.
A strong timeshare market has helped the company generate consistent revenue and earnings even during uncertain times, which has allowed it to produce substantial free cash flow for share buybacks and increased dividends. The Interval Leisure acquisition should be accretive for shareholders and accelerate growth in the years to come, in our view. Management has only outlined cost synergies and we think revenue synergies could be as much as cost if not more over time. This should lead to strong earnings and free cash flow that is not currently being valued by the market.

Consumer Discretionary 3.0%

Total

44.6%

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

as of 12/31/18

Name Sector % of Net Assets

American Tower Corp.

Real Estate 7.3%

CBRE Group, Inc.

Real Estate 6.4%

Equinix, Inc.

Real Estate 6.3%

Interxion Holding N.V.

Information Technology 5.2%

MGM Resorts International

Consumer Discretionary 4.6%

Lowe's Companies, Inc.

Consumer Discretionary 4.1%

Brookfield Asset Management, Inc.

Financials 3.7%

Home Depot, Inc.

Consumer Discretionary 3.6%

D.R. Horton, Inc.

Consumer Discretionary 3.4%

Americold Realty Trust

Real Estate 2.8%

Norwegian Cruise Line Holdings, Ltd.

Consumer Discretionary 2.6%

Digital Realty Trust, Inc.

Real Estate 2.5%

Hilton Grand Vacations, Inc.

Consumer Discretionary 2.4%

Royal Caribbean Cruises Ltd.

Consumer Discretionary 2.4%

Gaming and Leisure Properties, Inc.

Real Estate 2.3%

MGM Growth Properties LLC

Real Estate 2.2%

Hyatt Hotels Corp.

Consumer Discretionary 2.2%

Marriott Vacations Worldwide Corp.

Consumer Discretionary 2.2%

Penn National Gaming, Inc.

Consumer Discretionary 2.1%

Douglas Emmett, Inc.

Real Estate 2.0%

Boyd Gaming Corporation

Consumer Discretionary 2.0%

Alexandria Real Estate Equities, Inc.

Real Estate 2.0%

Masco Corporation

Industrials 1.9%

Gds Holdings Limited - Adr

Information Technology 1.8%

Prologis, Inc.

Real Estate 1.8%

Hilton Worldwide Holdings, Inc.

Consumer Discretionary 1.7%

SBA Communications Corp.

Real Estate 1.7%

Red Rock Resorts, Inc. - Cl. A

Consumer Discretionary 1.6%

Marriott International, Inc.

Consumer Discretionary 1.6%

CoStar Group, Inc.

Industrials 1.5%

Lennar Corporation - Cl A

Consumer Discretionary 1.4%

The Sherwin-Williams Company

Materials 1.4%

NEXTDC Limited

Information Technology 1.4%

Equity LifeStyle Properties, Inc.

Real Estate 1.3%

Trex Company, Inc.

Industrials 1.2%

SiteOne Landscape Supply, Inc.

Industrials 1.2%

CyrusOne Inc.

Real Estate 1.1%

Park Hotels & Resorts Inc.

Real Estate 1.0%

China Tower Corporation Limited - Cl - H

Communication Services 0.9%

Invitation Homes, Inc.

Real Estate 0.6%

Caesars Entertainment Corporation

Consumer Discretionary 0.6%

GICS SECTOR BREAKDOWN

As of 01/31/19

As of 01/31/19

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

Contributors/Detractors

Quarterly as of 12/31/18

Top Contributors Average Weight Contribution
American Tower Corp. 7.22% 0.58%
China Tower Corporation Limited 0.14% 0.05%
SBA Communications Corp. 1.73% 0.03%
Americold Realty Trust 2.03% 0.01%

Quarterly as of 12/31/18

Top Detractors Average Weight Contribution
Penn National Gaming, Inc. 2.24% -1.33%
Equinix, Inc. 6.16% -1.21%
InterXion Holding N.V. 5.28% -1.08%
GDS Holdings Limited 1.86% -0.94%
Marriott Vacations Worldwide Corp. 1.97% -0.85%

Source: FactSet PA.

Insights & News

Documents

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: In addition to general market conditions, the value of the Fund 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 Fund invests 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.

The Fund may not achieve its objectives.

Definitions (provided by BAMCO, Inc.): The indexes are unmanaged. The MSCI USA IMI Extended Real Estate Index is a custom index calculated by MSCI for, and as requested by, BAMCO, Inc. The index includes real estate and real estate-related GICS classification securities. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI. The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. The indexes and the Fund include reinvestment of interest, capital gains and dividends, which positively impact the performance results. 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.