UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-21296
BARON SELECT FUNDS
(Exact Name of Registrant as Specified in Charter)
767 Fifth Avenue, 49th Floor
New York, NY 10153
(Address of Principal Executive Offices) (Zip Code)
Patrick M. Patalino, General Counsel
c/o Baron Select Funds
767 Fifth Avenue, 49th Floor
New York, NY 10153
(Name and Address of Agent for Service)
(Registrant’s Telephone Number, including Area Code): 212-583-2000
Date of fiscal year end: December 31
Date of reporting period: June 30, 2021
Item 1. Reports to Stockholders.
Baron Partners Fund
Baron Focused Growth Fund
Baron International Growth Fund
Baron Real Estate Fund
Baron Emerging Markets Fund
Baron Global Advantage Fund
Baron Real Estate Income Fund
Baron Health Care Fund
Baron FinTech Fund
Baron Funds®
Baron Select Funds
Semi-Annual Financial Report
DEAR BARON SELECT FUNDS SHAREHOLDER:
In this report, you will find unaudited financial statements for Baron Partners Fund, Baron Focused Growth Fund, Baron International Growth Fund, Baron Real Estate Fund, Baron Emerging Markets Fund, Baron Global Advantage Fund, Baron Real Estate Income Fund, Baron Health Care Fund, and Baron FinTech Fund (the “Funds”) for the six months ended June 30, 2021. The U.S. Securities and Exchange Commission (the “SEC”) requires mutual funds to furnish these statements semi-annually to their shareholders. We hope you find these statements informative and useful.
We thank you for choosing to join us as fellow shareholders in Baron Funds. We will continue to work hard to justify your confidence.
Sincerely,
| | | | |
 | |  | |  |
Ronald Baron Chief Executive Officer August 20, 2021 | | Linda S. Martinson Chairman, President and Chief Operating Officer August 20, 2021 | | Peggy Wong Treasurer and Chief Financial Officer August 20, 2021 |
This Semi-Annual Financial Report is for the Baron Select Funds, which currently has 11 series: Baron Partners Fund, Baron Focused Growth Fund, Baron International Growth Fund, Baron Real Estate Fund, Baron Emerging Markets Fund, Baron Global Advantage Fund, Baron Real Estate Income Fund, Baron Health Care Fund, Baron FinTech Fund, Baron WealthBuilder Fund, and Baron New Asia Fund. Baron WealthBuilder Fund is included in a separate Financial Report. Baron New Asia Fund commenced investment operations on July 30, 2021 and therefore, financial information is not included in this report. If you are interested in Baron WealthBuilder Fund or Baron Investment Funds Trust, which contains the Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund, and Baron Durable Advantage Fund, please visit the Funds’ website at www.BaronFunds.com or contact us at 1-800-99BARON.
The Funds’ Proxy Voting Policy is available without charge and can be found on the Funds’ website at www.BaronFunds.com, by clicking on the “Regulatory Documents” link at the bottom left corner of the homepage or by calling 1-800-99BARON and on the SEC’s website at www.sec.gov. The Funds’ most current proxy voting record, Form N-PX, is also available on the Funds’ website and on the SEC’s website.
The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Form N-PORT reports are available on the SEC’s website at www.sec.gov. Schedules of portfolio holdings current to the most recent quarter are also available on the Funds’ website.
Some of the comments contained in this report are based on current management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. You can identify forward-looking statements by words such as “estimate,” “may,” “expect,” “should,” “could,” “believe,” “plan”, and other similar terms. We cannot promise future returns and our opinions are a reflection of our best judgment at the time this report is compiled.
The views expressed in this report reflect those of BAMCO, Inc. (“BAMCO” or the “Adviser”) only through the end of the period stated in this report. The views are not intended as recommendations or investment advice to any person reading this report and are subject to change at any time without notice based on market and other conditions.
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. For more complete information about Baron Funds, including charges and expenses, call, write or go to www.BaronFunds.com for a prospectus or summary prospectus. Read them carefully before you invest or send money. This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds, unless accompanied or preceded by the Funds’ current prospectus or summary prospectus.
| | |
| Baron Partners Fund (Unaudited) | | June 30, 2021 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON PARTNERS FUND (RETAIL SHARES)
IN RELATIONTOTHE RUSSELL MIDCAP GROWTH INDEXANDTHE S&P 500 INDEX
| | | | | | | | | | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED JUNE 30, 2021 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Ten
Years | | | Since
Inception (January 31,
1992) | |
Baron Partners Fund — Retail Shares1,2,3 | | | 4.29% | | | | 118.98% | | | | 47.25% | | | | 38.09% | | | | 23.55% | | | | 16.27% | |
Baron Partners Fund — Institutional Shares1,2,3,4 | | | 4.43% | | | | 119.55% | | | | 47.64% | | | | 38.45% | | | | 23.88% | | | | 16.39% | |
Baron Partners Fund — R6 Shares1,2,3,4 | | | 4.43% | | | | 119.53% | | | | 47.64% | | | | 38.45% | | | | 23.88% | | | | 16.39% | |
Russell Midcap Growth Index1 | | | 10.44% | | | | 43.77% | | | | 22.39% | | | | 20.52% | | | | 15.13% | | | | 11.03% | |
S&P 500 Index1 | | | 15.25% | | | | 40.79% | | | | 18.67% | | | | 17.65% | | | | 14.84% | | | | 10.53% | |
| 1 | The Russell Midcap® Growth Index measures the performance of medium-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 Baron Partners Fund are with dividends, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index. |
| 2 | Reflects the actual fees and expenses that were charged when the Fund was a partnership. The predecessor partnership charged a 20% performance fee after reaching a certain performance benchmark. If the annual returns for the Fund did not reflect the performance fees for the years the predecessor partnership charged a performance fee, returns would be higher. The Fund’s shareholders will not be charged a performance fee. The predecessor partnership’s performance is only for periods before the Fund’s registration statement was effective, which was April 30, 2003. During those periods, the predecessor partnership was not registered under the Investment Company Act of 1940 and was not subject to its requirements or the requirements of the Internal Revenue Code relating to regulated investment companies, which, if it were, might have adversely affected its performance. |
| 3 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Fund’s transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. |
| 4 | Performance for the Institutional Shares prior to May 29, 2009 is based on the performance of the Retail Shares. Performance for the R6 Shares prior to August 31, 2016 is based on the performance of the Institutional Shares, and prior to May 29, 2009 is based on the Retail Shares. The Retail Shares have a distribution fee, but Institutional Shares and R6 Shares do not. If the annual returns for the Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect this fee, the returns would be higher. |
2
| | |
| June 30, 2021 (Unaudited) | | Baron Partners Fund |
TOP TEN HOLDINGSASOF JUNE 30, 2021
| | | | |
| | | Percent of Total
Investments | |
Tesla, Inc. | | | 38.1% | |
CoStar Group, Inc. | | | 8.2% | |
IDEXX Laboratories, Inc. | | | 6.8% | |
Zillow Group, Inc. | | | 4.5% | |
Space Exploration Technologies Corp. | | | 4.3% | |
Vail Resorts, Inc. | | | 4.2% | |
The Charles Schwab Corp. | | | 3.8% | |
Arch Capital Group Ltd. | | | 3.4% | |
FactSet Research Systems, Inc. | | | 3.2% | |
Hyatt Hotels Corp. | | | 3.0% | |
| |
| | | | 79.5% | |
SECTOR BREAKDOWNASOF JUNE 30, 2021†
(as a percentage of total investments)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six months ended June 30, 2021, Baron Partners Fund1 increased 4.29%, underperforming the Russell Midcap Growth Index, which increased 10.44%.
Baron Partners Fund invests primarily in U.S. companies of any size with, in our view, significant long-term growth potential. We believe our process can identify investment opportunities that are attractively priced relative to future prospects. The Fund is non-diversified, so its top 10 holdings are expected to comprise a significant percentage of the portfolio, and the Fund uses leverage, both of which increase risk. In addition, the Fund may be subject to risks associated with potentially being concentrated in the securities of a single issuer or a small number of issuers, including in
a particular industry. Of course, there can be no assurance that we will be successful in achieving the Fund’s investment goals.
As of June 30, 2021, 41.2% of the Fund’s net assets are invested in Tesla stock. Therefore, the Fund is exposed to the risk that were Tesla stock to lose significant value, which could happen rapidly, the Fund’s performance would be adversely affected. Before investing in the Fund, investors should carefully consider publicly available information about Tesla. There can be no assurances that the Fund will maintain its investment in Tesla, as the Adviser maintains discretion to actively manage the Fund’s portfolio, including by decreasing or liquidating the Fund’s investment in Tesla at any time. However, for so long as the Fund maintains a substantial investment in Tesla, the Fund’s performance will be significantly affected by the performance of Tesla stock and any decline in the price of Tesla stock would materially and adversely affect your investment in the Fund.
While equity markets continued their upward climb through the first half of 2021, beneath the surface, a major rotation took place. The “recovery play” dominated at first, with stocks hit hard during the pandemic along with cyclical, more speculative stocks peaking mid-period as pent-up demand met massive policy stimulus, positive vaccine developments, and the reopening of the economy. Secular growth stocks came back in favor later in the period, led by large-cap technology stocks. The economy continued to grow rapidly as the effects of the pandemic receded, and U.S growth appeared likely to stay strong in the near term. However, inflation accelerated significantly, both in goods and wages, causing investor concerns around whether policy was too stimulative, the Federal Reserve needed to change course, and interest rates would continue to rise.
At the sector level, Financials, Health Care, and Information Technology contributed the most to performance. Communication Services detracted.
Veterinary diagnostics leader IDEXX Laboratories, Inc. was the top contributor. Veterinary visits continue to recover from pandemic lows, with practice revenue growing at double-digit rates. IDEXX’s competitive trends are outstanding, and we expect new proprietary innovations and field sales force expansion to be meaningful contributors to growth. Margins are moving significantly higher, and we believe that margins can exceed 30% over time.
Zillow Group, Inc. was the top detractor. Zillow operates leading U.S. real estate sites, a mortgage marketplace, and the Zillow Offers home-buying business. Shares were down due to rising mortgage rates and the potential knock-on effects to the housing environment. Zillow also issued revenue guidance that was slightly below Street expectations. Despite the volatility, we continue to believe that Zillow has substantial upside in mortgages and Offers, which can grow its addressable market not only in houses bought/sold but also in leads provided to Zillow Premier Agents.
We do not invest based on our insights into macroeconomic, political, or, more recently, public health issues. Nevertheless, we are optimistic that near-term business conditions seem favorable for our investments — vaccines seem to be highly effective, the U.S. economy is reopening, continued fiscal stimulus seems likely, and interest rates remain below historic levels. While inflation is now on the table, the Federal Reserve appears to believe it to be a transitory result of pandemic-related supply and labor constraints and has pledged to keep rates low for the near term.
| † | Sector levels are provided from the Global Industry Classification Standard (“GICS”), developed and exclusively owned by MSCI, Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of the Retail Shares. |
3
| | |
| Baron Focused Growth Fund (Unaudited) | | June 30, 2021 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON FOCUSED GROWTH FUND (RETAIL SHARES)
INRELATIONTOTHE RUSSELL 2500 GROWTH INDEXANDTHE S&P 500 INDEX
| | | | | | | | | | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED JUNE 30, 2021 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Ten
Years | | | Since
Inception (May 31,
1996) | |
Baron Focused Growth Fund — Retail Shares1,2,3 | | | 2.40% | | | | 94.48% | | | | 39.24% | | | | 31.22% | | | | 18.14% | | | | 14.34% | |
Baron Focused Growth Fund — Institutional Shares1,2,3,4 | | | 2.54% | | | | 95.00% | | | | 39.58% | | | | 31.55% | | | | 18.44% | | | | 14.48% | |
Baron Focused Growth Fund — R6 Shares1,2,3,4 | | | 2.53% | | | | 95.04% | | | | 39.61% | | | | 31.56% | | | | 18.45% | | | | 14.48% | |
Russell 2500 Growth Index1 | | | 8.67% | | | | 49.63% | | | | 20.15% | | | | 20.68% | | | | 14.83% | | | | 9.59% | |
S&P 500 Index1 | | | 15.25% | | | | 40.79% | | | | 18.67% | | | | 17.65% | | | | 14.84% | | | | 9.74% | |
| 1 | The Russell 2500™ Growth Index measures the performance of small- to medium-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 Baron Focused Growth Fund are with dividends, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index. |
| 2 | Reflects the actual fees and expenses that were charged when the Fund was a partnership. The predecessor partnership charged a 15% performance fee through 2003 after reaching a certain performance benchmark. If the annual returns for the Fund did not reflect the performance fees for the years the predecessor partnership charged a performance fee, the returns would be higher. The Fund’s shareholders will not be charged a performance fee. The predecessor partnership’s performance is only for periods before the Fund’s registration statement was effective, which was June 30, 2008. During those periods, the predecessor partnership was not registered under the Investment Company Act of 1940 and was not subject to its requirements or the requirements of the Internal Revenue Code relating to regulated investment companies, which, if it were, might have adversely affected its performance. |
| 3 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2031, 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. |
| 4 | Performance for the Institutional Shares prior to May 29, 2009 is based on the performance of the Retail Shares. Performance for the R6 Shares prior to August 31, 2016 is based on the performance of the Institutional Shares, and prior to May 29, 2009 is based on the Retail Shares. The Retail Shares have a distribution fee, but Institutional Shares and R6 Shares do not. If the annual returns for the Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect this fee, the returns would be higher. |
4
| | |
| June 30, 2021 (Unaudited) | | Baron Focused Growth Fund |
TOP TEN HOLDINGSASOF JUNE 30, 2021
| | | | |
| | | Percent of
Net Assets | |
Tesla, Inc. | | | 31.6% | |
CoStar Group, Inc. | | | 7.4% | |
Penn National Gaming, Inc. | | | 6.3% | |
Vail Resorts, Inc. | | | 6.2% | |
Hyatt Hotels Corp. | | | 3.8% | |
Space Exploration Technologies Corp. | | | 3.7% | |
FactSet Research Systems, Inc. | | | 3.6% | |
BioNTech SE | | | 3.6% | |
Spotify Technology S.A. | | | 3.4% | |
Arch Capital Group Ltd. | | | 3.4% | |
| |
| | | | 73.0% | |
SECTOR BREAKDOWNASOF JUNE 30, 2021†
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six months ended June 30, 2021, Baron Focused Growth Fund1 appreciated 2.40%, underperforming the Russell 2500 Growth Index, which increased 8.67%.
Baron Focused Growth Fund invests in a non-diversified portfolio of companies that we believe are well capitalized and have exceptional management, significant growth potential, and sustainable barriers to competition. We believe our process can identify investment opportunities that are attractively priced relative to future prospects. In addition, the Fund may be subject to risks associated with potentially being concentrated in the securities of a single issuer or a small number of issuers, including in a particular industry. Of course, there can be no assurance that we will be successful in achieving the Fund’s investment goals.
As of June 30, 2021, 31.6% of the Fund’s net assets are invested in Tesla stock. Therefore, the Fund is exposed to the risk that were Tesla stock to lose significant value, which could happen rapidly, the Fund’s performance would be adversely affected. Before investing in the Fund, investors should carefully consider publicly available information about Tesla. There can be no assurances that the Fund will maintain its investment in Tesla, as the Adviser maintains discretion to actively manage the Fund’s portfolio, including by decreasing or liquidating the Fund’s investment in Tesla at any time. However, for so long as the Fund maintains a substantial investment in Tesla, the Fund’s performance will be significantly affected by the performance of Tesla stock and any decline in the price of Tesla stock would materially and adversely affect your investment in the Fund.
While equity markets continued their upward climb through the first half of 2021, beneath the surface, a major rotation took place. The “recovery play” dominated at first, with stocks hit hard during the pandemic along with cyclical, more speculative stocks peaking mid-period as pent-up demand met massive policy stimulus, positive vaccine developments, and the reopening of the economy. Secular growth stocks came back in favor later in the period, led by large-cap technology stocks. The economy continued to grow rapidly as the effects of the pandemic receded, and U.S growth appeared likely to stay strong in the near term. However, inflation accelerated significantly, both in goods and wages, causing investor concerns around whether policy was too stimulative, the Federal Reserve needed to change course, and interest rates would continue to rise.
At the sector level, Health Care, Financials, and Real Estate contributed the most to performance. Information Technology and Communication Services detracted.
BioNTech SE was the top contributor. BioNTech is a leader in the emerging field of mRNA drugs, with additional programs in engineered cell therapies, antibodies, and immunomodulators. The company hit the headlines with the COVID-19 vaccine it developed in partnership with Pfizer. We believe the vaccine has been a strong proof point of the speed and efficacy of the mRNA platform. Beyond vaccines, we think BioNTech has potential to disrupt the biopharmaceutical space with a pipeline spanning oncology, infectious diseases, and rare diseases.
Penn National Gaming, Inc., a regional U.S. casino operator, was the top detractor. Shares fell on the news that the company had lost sports betting and i-gaming market share in both Michigan and Pennsylvania. While the lost market share is a disappointment, Penn has been able to maintain a double-digit share with no marketing. We believe the market is attributing little value to Penn’s Barstool equity stake as well as its online gaming and sports betting opportunities including its access fees from other operators.
We do not invest based on our insights into macroeconomic, political, or, more recently, public health issues. Nevertheless, we are optimistic that near-term business conditions seem favorable for our investments — vaccines seem to be highly effective, the U.S. economy is reopening, continued fiscal stimulus seems likely, and interest rates remain below historic levels. While inflation is now on the table, the Federal Reserve appears to believe it to be a transitory result of pandemic-related supply and labor constraints and has pledged to keep rates low for the near term.
| † | Sector levels are provided from the Global Industry Classification Standard (“GICS”), developed and exclusively owned by MSCI, Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of the Retail Shares. |
5
| | |
| Baron International Growth Fund (Unaudited) | | June 30, 2021 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON INTERNATIONAL GROWTH FUND (RETAIL SHARES)
INRELATIONTOTHE MSCI ACWIEX USA INDEXANDTHE MSCI ACWIEX USA IMI GROWTH INDEX
| | | | | | | | | | | | | | | | | | | | | | | | |
| AVERAGEANNUAL TOTAL RETURNSFORTHEPERIODSENDED JUNE 30, 2021 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Ten
Years | | | Since
Inception (December 31,
2008)^ | |
Baron International Growth Fund — Retail Shares1,2 | | | 10.92% | | | | 43.83% | | | | 15.46% | | | | 16.22% | | | | 9.52% | | | | 12.84% | |
Baron International Growth Fund — Institutional Shares1,2,3 | | | 11.04% | | | | 44.18% | | | | 15.73% | | | | 16.50% | | | | 9.79% | | | | 13.11% | |
Baron International Growth Fund — R6 Shares1,2,3 | | | 11.05% | | | | 44.10% | | | | 15.71% | | | | 16.48% | | | | 9.78% | | | | 13.11% | |
MSCI ACWI ex USA Index1 | | | 9.16% | | | | 35.72% | | | | 9.38% | | | | 11.08% | | | | 5.45% | | | | 8.50% | |
MSCI ACWI ex USA IMI Growth Index1 | | | 7.03% | | | | 35.13% | | | | 13.04% | | | | 13.36% | | | | 7.36% | | | | 10.34% | |
| ^ | Commencement of investment operations was January 2, 2009. |
| 1 | The MSCI ACWI ex USA Index Net USD is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of large- and mid-cap securities across developed and emerging markets, excluding the United States. The MSCI ACWI ex USA IMI Growth Index Net USD is a free float-adjusted market capitalization weighted index that is designed to measure the performance of large-, mid-, and small-cap growth securities across developed and emerging markets, excluding the United States. MSCI is the source and owner of the trademarks, service marks and copyrights related to the MSCI Indexes. The indexes and Baron International Growth Fund include reinvestment of dividends, net of foreign withholding taxes, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2031, 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. |
| 3 | Performance for the Institutional Shares prior to May 29, 2009 is based on the performance of the Retail Shares. Performance for the R6 Shares prior to August 31, 2016 is based on the performance of the Institutional Shares, and prior to May 29, 2009 is based on the Retail Shares. The Retail Shares have a distribution fee, but Institutional Shares and R6 Shares do not. If the annual returns for the Institutional Shares and R6 Shares prior to May 29, 2009 did not reflect this fee, the returns would be higher. |
6
| | |
| June 30, 2021 (Unaudited) | | Baron International Growth Fund |
TOP TEN HOLDINGSASOF JUNE 30, 2021
| | | | |
| | | Percent of
Net Assets | |
BNP Paribas S.A. | | | 2.8% | |
Future plc | | | 2.7% | |
S4 Capital plc | | | 2.2% | |
TCS Group Holding PLC | | | 2.2% | |
argenx SE | | | 1.8% | |
Lloyds Banking Group plc | | | 1.8% | |
Zai Lab Limited | | | 1.6% | |
Linde plc | | | 1.6% | |
LVMH Moet Hennessy Louis Vuitton SE | | | 1.6% | |
Bajaj Finance Limited | | | 1.6% | |
| |
| | | | 19.9% | |
SECTOR BREAKDOWNASOF JUNE 30, 2021†
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six months ended June 30, 2021, Baron International Growth Fund1 increased 10.92%, outperforming the MSCI ACWI ex USA Index, which increased 9.16%.
Baron International Growth Fund is a diversified fund that invests for the long term primarily in securities of non-U.S. growth companies. The Fund expects to diversify among several developed countries and developing countries throughout the world, although the Fund’s total exposure to developing countries will not exceed 35%. The Fund may purchase securities of companies of any size. Of course, there can be no guarantee that we will be successful in achieving the Fund’s investment goals.
While the markets continued their upward climb through the first half of 2021, beneath the surface, a major rotation took place. The “recovery play” dominated the first two months, with speculative and higher growth stocks peaking in mid-February as risk aversion, low expectations, and pent-up demand met massive policy stimulus, positive vaccine developments, economic reopening, and normalization. That trend reversed as concerns over COVID-19 variants and rising conviction that the Federal Reserve would not fall too far behind the curve coalesced to cool global growth expectations and spiraling commodity prices. As a result, international equities lagged U.S. equities amid mixed signals, though we remain optimistic regarding their relative appeal, particularly on a multi-year basis.
On a country basis, the U.K., Russia, and France were the top contributors, and Switzerland and Japan were the top detractors.
On a sector basis, Financials, Information Technology, and Health Care contributed the most. Real Estate was a modest detractor.
The top contributor was TCS Group Holdings PLC, a Russian financial and lifestyle services platform ecosystem with over 13 million active users. Shares rose after the company reported strong results for the first five months of 2021 on traction in several business lines, including its retail brokerage business and online payment processing. TCS also started providing detailed information about its verticals, allowing investors to better value the company.
The top detractor was Credit Suisse Group AG, a Switzerland-based financial institution focused on wealth management and investment banking. Shares declined following two high-profile mishaps in its asset management and prime brokerage businesses, leading to significant losses and curtailment of its capital return plans. We believe the impact of these losses is already reflected in the market cap and see value in the group’s wealth management operations, which provide upside from current levels.
We view the recent spotting of above-targeted growth and inflation as having both transitory and more structural drivers. COVID-19-related supply and labor bottlenecks will likely prove transitory. However, the increase in global fiscal spending will prove more structural in our view, leading to marginally greater potential for economic growth and inflation and higher interest rates. With sovereign bond yields at historic lows, and real interest rates still negative in most developed markets, we believe international equities can likely continue to be supported by capital flows at the expense of sovereign bonds for some time.
| † | Sector levels are provided from the Global Industry Classification Standard (“GICS”), developed and exclusively owned by MSCI, Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of the Retail Shares. |
7
| | |
| Baron Real Estate Fund (Unaudited) | | June 30, 2021 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON REAL ESTATE FUND (RETAIL SHARES)
INRELATIONTOTHE MSCI USA IMI EXTENDED REAL ESTATE INDEXAND MSCI US REIT INDEX
| | | | | | | | | | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED JUNE 30, 2021 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Ten
Years | | | Since
Inception (December 31,
2009)^ | |
Baron Real Estate Fund — Retail Shares1,2 | | | 16.10% | | | | 60.69% | | | | 25.09% | | | | 20.17% | | | | 16.33% | | | | 17.15% | |
Baron Real Estate Fund — Institutional Shares1,2 | | | 16.24% | | | | 61.07% | | | | 25.42% | | | | 20.49% | | | | 16.63% | | | | 17.44% | |
Baron Real Estate Fund — R6 Shares1,2,3 | | | 16.24% | | | | 61.08% | | | | 25.41% | | | | 20.49% | | | | 16.63% | | | | 17.45% | |
MSCI USA IMI Extended Real Estate Index1 | | | 20.04% | | | | 44.27% | | | | 13.56% | | | | 11.48% | | | | 12.11% | | | | 13.00% | |
MSCI US REIT Index1 | | | 21.24% | | | | 36.57% | | | | 8.83% | | | | 5.02% | | | | 8.06% | | | | 10.10% | |
| ^ | Commencement of investment operations was January 4, 2010. |
| 1 | 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 representation 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 indexes or any securities or financial products. This report is not approved, reviewed or produced by MSCI. The MSCI US REIT Index is a free float-adjusted market capitalization index that measures the performance of all equity REITs in the U.S. equity market, except for specialty equity REITs that do not generate a majority of their revenue and income from real estate rental and leasing operations. MSCI is the source and owner of the trademarks, service marks and copyrights related to the MSCI Indexes. The indexes and Baron Real Estate Fund are with dividends, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2031, 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. |
| 3 | Performance for the R6 Shares prior to January 29, 2016 is based on the performance of the Institutional Shares. |
8
| | |
| June 30, 2021 (Unaudited) | | Baron Real Estate Fund |
TOP TEN HOLDINGSASOF JUNE 30, 2021
| | | | |
| | | Percent of
Net Assets | |
GDS Holdings Limited | | | 3.6% | |
Red Rock Resorts, Inc. | | | 3.4% | |
Brookfield Asset Management Inc. | | | 3.4% | |
American Tower Corp. | | | 3.0% | |
Lowe’s Companies, Inc. | | | 3.0% | |
Jones Lang LaSalle Incorporated | | | 2.8% | |
Boyd Gaming Corporation | | | 2.7% | |
Simon Property Group, Inc. | | | 2.6% | |
CBRE Group, Inc. | | | 2.6% | |
Zillow Group, Inc. | | | 2.6% | |
| |
| | | | 29.7% | |
SECTOR BREAKDOWNASOF JUNE 30, 2021†
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six months ended June 30, 2021, Baron Real Estate Fund1 appreciated 16.10%, underperforming the MSCI USA IMI Extended Real Estate Index, which increased 20.04%.
Baron Real Estate Fund is a diversified fund that under normal circumstances, invests 80% of its net assets in real estate and real estate-related companies of all sizes, and in companies which, in the opinion of the Adviser, own significant real estate assets at the time of investment. The Fund seeks to invest in well-managed companies that we believe have significant long-term growth opportunities. The Fund’s investment universe extends beyond real estate investment trusts (“REITs”) to include hotels, senior housing operators, casino and gaming operators, tower operators, infrastructure-related companies and master limited partnerships, data centers, building products companies, real estate service companies, and real estate operating companies. Of course, there can be no guarantee that we will be successful in achieving the Fund’s investment goals.
The first six months of 2021 saw a shift in leadership from growth to value stocks within real estate. After a sharp increase in equities that stood to benefit from a post-pandemic environment (the so-called “reopening trade”), returns were tied more closely to company earnings results. REITs benefited broadly from investor expectations of economic growth driven by the successful rollout of vaccines, anticipated pent-up demand from consumers and businesses, the expected recovery in employment, and federal stimulus payments.
REITs, casinos & gaming operators, and building products/services were the top contributing categories to performance. Data centers detracted.
Shares of top contributor Red Rock Resorts, Inc., a casino operator in the Las Vegas locals market, rose on reported EBITDA significantly above pre-pandemic levels and a complete recovery in revenue. Management has said it thinks the margin expansion is sustainable given revenue levels and a reimagined cost structure. Robust free cash flow combined with the $650 million sale of its Palms casino, which is slated to close by the end of 2021, should help improve the balance sheet.
Las Vegas Sands Corporation, a global casino company with assets in Macau, Singapore and Las Vegas, was the top detractor. Shares lost ground due to the slowed reopening of Macau in response to the new, more contagious variant of COVID-19. While Macau is taking longer than expected to recover, we think conditions will normalize by 2022, and we view the company’s valuation as attractive. Las Vegas Sands should close on the $6.25 billion sale of its Vegas assets by the end of 2021, which should improve the balance sheet and allow it to focus on higher-return growth in Asia.
As the pandemic continues to recede, we believe this is an opportune time for active managers in real estate with the flexibility to shift into growth areas while avoiding others facing a longer and more uncertain recovery. We believe our philosophy of structuring a more inclusive and unique real estate fund — one that includes REITs but is more expansive, balanced, and diversified than a typical “REIT only” fund — is a compelling long-term strategy.
| † | Sector levels are provided from the Global Industry Classification Standard (“GICS”), developed and exclusively owned by MSCI, Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of the Retail Shares. |
9
| | |
| Baron Emerging Markets Fund (Unaudited) | | June 30, 2021 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON EMERGING MARKETS FUND (RETAIL SHARES)
INRELATIONTOTHE MSCI EM INDEXANDTHE MSCI EM IMI GROWTH INDEX
| | | | | | | | | | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED JUNE 30, 2021 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Ten
Years | | | Since
Inception (December 31,
2010)^ | |
Baron Emerging Markets Fund — Retail Shares1,2 | | | 4.59% | | | | 42.12% | | | | 12.48% | | | | 12.38% | | | | 7.43% | | | | 6.98% | |
Baron Emerging Markets Fund — Institutional Shares1,2 | | | 4.67% | | | | 42.40% | | | | 12.76% | | | | 12.66% | | | | 7.70% | | | | 7.24% | |
Baron Emerging Markets Fund — R6 Shares1,2,3 | | | 4.72% | | | | 42.54% | | | | 12.75% | | | | 12.65% | | | | 7.70% | | | | 7.25% | |
MSCI EM Index1 | | | 7.45% | | | | 40.90% | | | | 11.27% | | | | 13.03% | | | | 4.28% | | | | 4.16% | |
MSCI EM IMI Growth Index1 | | | 6.54% | | | | 42.45% | | | | 14.34% | | | | 15.54% | | | | 6.34% | | | | 6.07% | |
| ^ | Commencement of investment operations was January 3, 2011. |
| 1 | The MSCI EM (Emerging Markets) Index and the MSCI EM (Emerging Markets) IMI Growth Index are free float-adjusted market capitalization weighted indexes. The MSCI EM (Emerging Markets) Index Net USD and the MSCI EM (Emerging Markets) IMI Growth Index Net USD are designed to measure the equity market performance of large-, mid-, and small-cap securities in the emerging markets. The MSCI EM (Emerging Markets) IMI Growth Index Net USD screens for growth-style securities. MSCI is the source and owner of the trademarks, service marks and copyrights related to the MSCI Indexes. The indexes and Baron Emerging Markets Fund include reinvestment of dividends, net of withholding taxes, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2031 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. |
| 3 | Performance for the R6 Shares prior to January 29, 2016 is based on the performance of the Institutional Shares. |
10
| | |
| June 30, 2021 (Unaudited) | | Baron Emerging Markets Fund |
TOP TEN HOLDINGSASOF JUNE 30, 2021
| | | | |
| | | Percent of
Net Assets | |
Tencent Holdings Limited | | | 4.4% | |
Taiwan Semiconductor Manufacturing Company Ltd. | | | 3.5% | |
Alibaba Group Holding Limited | | | 3.4% | |
Samsung Electronics Co., Ltd. | | | 3.2% | |
Bajaj Finance Limited | | | 2.3% | |
Zai Lab Limited | | | 2.2% | |
Korea Shipbuilding & Offshore Engineering Co., Ltd. | | | 2.1% | |
Reliance Industries Limited | | | 2.1% | |
Novatek PJSC | | | 1.9% | |
Sberbank of Russia PJSC | | | 1.8% | |
| |
| | | | 26.9% | |
SECTOR BREAKDOWNASOF JUNE 30, 2021†
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six months ended June 30, 2021, Baron Emerging Markets Fund1 increased 4.59%, underperforming the MSCI EM Index, which increased 7.45%.
Baron Emerging Markets Fund is a diversified fund that invests for the long term primarily in companies of any size that have their principal business activities or trading markets in developing countries. The Fund may invest up to 20% of its net assets in developed and frontier countries. The Fund seeks to invest in companies with significant long-term growth prospects and to purchase them at prices we believe to be favorable. Of course, there can be no guarantee that we will be successful in achieving the Fund’s investment goals.
While the markets continued their upward climb through the first half of 2021, beneath the surface, a major rotation took place. The “recovery play” dominated the first two months, with speculative and higher growth stocks peaking in mid-February as risk aversion, low expectations, and pent-up demand met massive policy stimulus, positive vaccine developments, economic reopening, and normalization. That trend reversed as a slowdown in Chinese credit growth, concerns over COVID-19 variants, and rising conviction that the Federal Reserve would not fall too far behind the curve coalesced to cool global growth expectations and spiraling commodity prices. As a result, EM equities lagged modestly in U.S. dollar terms amid mixed signals, though we remain optimistic regarding their relative appeal, particularly on a multi-year basis.
On a country basis, India, Russia, and China contributed the most, while Brazil, Japan, and Poland detracted slightly.
On a sector basis, Health Care, Financials, and Materials contributed the most, while Real Estate, Consumer Discretionary, and Information Technology detracted slightly.
Zai Lab Limited, a leader in the development of a biopharmaceutical industry in China, was the top contributor. Shares increased given continued execution of deals, most recently highlighted by in-licensing of Mirati’s KRAS G12C inhibitor. We believe Zai Lab can be a leader among China pharmaceuticals, a market that is growing as the Chinese government continues to grow health care spending as a percentage of GDP.
Midea Group Co., Ltd., a leading Chinese global home appliances manufacturer, detracted the most. After increasing sharply in 2020 driven by the Chinese economy’s recovery from COVID-19 and rebound in consumer spending, shares gave up some gains on likely profit taking. In addition, home appliance stocks, including Midea, were pressured by the tightening of market liquidity margins in China and the adverse impact of rising commodity prices.
We view the recent spotting of above-targeted growth and inflation as having both transitory and more structural drivers. COVID-19-related supply and labor bottlenecks will likely prove transitory. However, the increase in global fiscal spending will prove more structural in our view, leading to marginally greater potential for economic growth and inflation and higher interest rates. With sovereign bond yields at historic lows, and real interest rates still negative in most developed markets, we believe EM equities can likely continue to be supported by capital flows at the expense of sovereign bonds for some time.
| † | Sector levels are provided from the Global Industry Classification Standard (“GICS”), developed and exclusively owned by MSCI, Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| * | Represents less than 0.05% of net assets. |
| 1 | Performance information reflects results of the Retail Shares. |
11
| | |
| Baron Global Advantage Fund (Unaudited) | | June 30, 2021 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON GLOBAL ADVANTAGE FUND† (RETAIL SHARES)
INRELATIONTOTHE MSCI ACWI INDEXANDTHE MSCI ACWI GROWTH INDEX
| | | | | | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED JUNE 30, 2021 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Five
Years | | | Since
Inception (April 30,
2012) | |
Baron Global Advantage Fund — Retail Shares1,2 | | | 9.72% | | | | 45.41% | | | | 34.42% | | | | 33.37% | | | | 20.80% | |
Baron Global Advantage Fund — Institutional Shares1,2 | | | 9.88% | | | | 45.78% | | | | 34.78% | | | | 33.68% | | | | 21.07% | |
Baron Global Advantage Fund — R6 Shares1,2,3 | | | 9.87% | | | | 45.79% | | | | 34.78% | | | | 33.69% | | | | 21.07% | |
MSCI ACWI Index1 | | | 12.30% | | | | 39.26% | | | | 14.57% | | | | 14.61% | | | | 11.10% | |
MSCI ACWI Growth Index1 | | | 10.29% | | | | 39.69% | | | | 20.40% | | | | 19.15% | | | | 13.88% | |
| † | The Fund’s six-month, 1-, 3- and 5-year historical performance was impacted by gains from IPOs, and there is no guarantee that these results can be repeated or that the Fund’s level of participation in IPOs will be the same in the future. |
| 1 | The MSCI ACWI Index and the MSCI ACWI Growth Index are free float-adjusted market capitalization weighted indexes. The MSCI ACWI Index Net USD and the MSCI ACWI Growth Index Net USD are designed to measure the equity market performance of large- and mid-cap securities across developed and emerging markets, including the United States. The MSCI ACWI Growth Index Net USD screens for growth-style securities. MSCI is the source and owner of the trademarks, service marks and copyrights related to the MSCI Indexes. The indexes and Baron Global Advantage Fund include reinvestment of dividends, net of foreign withholding taxes, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2031, 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. |
| 3 | Performance for the R6 Shares prior to August 31, 2016 is based on the performance of the Institutional Shares. |
12
| | |
| June 30, 2021 (Unaudited) | | Baron Global Advantage Fund |
TOP TEN HOLDINGSASOF JUNE 30, 2021
| | | | |
| | | Percent of
Net Assets | |
Alphabet Inc. | | | 5.4% | |
Amazon.com, Inc. | | | 4.6% | |
Facebook, Inc. | | | 3.9% | |
Alibaba Group Holding Limited | | | 3.9% | |
EPAM Systems, Inc. | | | 3.0% | |
Endava plc | | | 2.8% | |
Acceleron Pharma Inc. | | | 2.8% | |
Fiverr International Ltd. | | | 2.7% | |
SoFi Technologies, Inc. | | | 2.6% | |
RingCentral, Inc. | | | 2.6% | |
| |
| | | | 34.3% | |
SECTOR BREAKDOWNASOF JUNE 30, 2021†
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six months ended June 30, 2021, Baron Global Advantage Fund1 appreciated 9.72%, underperforming the MSCI ACWI Index, which increased 12.30%.
Baron Global Advantage Fund is a diversified fund that, under normal circumstances, invests primarily in equity securities of established and emerging markets companies throughout the world, with capitalizations within the range of companies included in the MSCI ACWI Index. At all times, the Fund will have investments in equity securities of companies in at least three countries outside the U.S. Under normal conditions, at least 40% of the Fund’s net assets will be invested in stocks of companies outside the U.S. (at least 30% if foreign market conditions are not favorable). The Adviser seeks to invest in businesses it believes have significant opportunities for growth, sustainable competitive advantages, exceptional management, and an attractive valuation. Of course, there can be no guarantee that we will be successful in achieving the Fund’s investment goals.
While equity markets continued their upward climb through the first half of 2021, beneath the surface, a major rotation took place. The “recovery play” dominated at first, with stocks hit hard during the pandemic along with cyclical, more speculative stocks climbing as pent-up demand met massive policy stimulus, positive vaccine developments, and the reopening of the economy. Secular growth stocks came back later in the period, led by large-cap technology stocks. The global economy continued to expand as the impacts of the pandemic receded. However, accelerating inflation spurred investor concerns around whether policy was too stimulative, the Federal Reserve needed to change course, and interest rates would continue to rise.
On a country basis, the U.S., U.K., and Canada contributed the most while China and Brazil detracted the most.
On a sector basis, Information Technology, Communication Services, and Health Care were the top contributors while Real Estate and Consumer Discretionary detracted.
The top contributor was Alphabet Inc., the parent company of Google. Shares climbed on continued recovery in ad spend, strong cloud revenue growth, and improved cost controls. We remain highly convicted in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network.
TAL Education Group is a leading K-12 after-school tutoring company in China with over 1,000 learning centers in 110 cities. Shares declined sharply following continued rumors regarding the severity of the upcoming regulatory changes that investors fear will adversely impact the after-school tutoring industry in China.
Every day we live and invest in an uncertain world. The constant challenges we face are real and serious, with clearly uncertain outcomes. History would suggest that most will prove passing or manageable. The business of capital allocation (or investing) is the business of taking risk, managing the uncertainty, and taking advantage of the long-term opportunities that those risks and uncertainties create. We are confident our process is the right one, and we believe it will enable us to make good investment decisions over time.
| † | Sector levels are provided from the Global Industry Classification Standard (“GICS”), developed and exclusively owned by MSCI, Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of the Retail Shares. |
13
| | |
| Baron Real Estate Income Fund (Unaudited) | | June 30, 2021 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON REAL ESTATE INCOME FUND (RETAIL SHARES)
INRELATIONTOTHE MSCI US REIT INDEX
| | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED JUNE 30, 2021 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Since
Inception December 29,
2017)^ | |
Baron Real Estate Income Fund — Retail Shares1,2 | | | 16.44% | | | | 44.23% | | | | 19.95% | | | | 16.79% | |
Baron Real Estate Income Fund — Institutional Shares1,2 | | | 16.64% | | | | 44.69% | | | | 20.18% | | | | 17.01% | |
Baron Real Estate Income Fund — R6 Shares1,2 | | | 16.65% | | | | 44.73% | | | | 20.11% | | | | 16.99% | |
MSCI US REIT Index1 | | | 21.24% | | | | 36.57% | | | | 8.83% | | | | 7.69% | |
| ^ | Commencement of investment operations was January 2, 2018. |
| 1 | The MSCI US REIT Index is a free float-adjusted market capitalization index that measures the performance of all equity REITs in the US equity market, except for specialty equity REITs that do not generate a majority of their revenue and income from real estate rental and leasing operations. MSCI is the source and owner of the trademarks, service marks and copyrights related to the MSCI Indexes. The index and Baron Real Estate Income Fund include reinvestment of interest, capital gains and dividends, which positively impact the performance results. The index is unmanaged. The index performance is not Fund performance; one cannot invest directly into an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2031, 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. |
14
| | |
| June 30, 2021 (Unaudited) | | Baron Real Estate Income Fund |
TOP TEN HOLDINGSASOF JUNE 30, 2021
| | | | |
| | | Percent of
Net Assets | |
Invitation Homes, Inc. | | | 5.7% | |
American Tower Corp. | | | 5.1% | |
Simon Property Group, Inc. | | | 3.7% | |
Equinix, Inc. | | | 3.6% | |
CoreSite Realty Corporation | | | 3.6% | |
Brookfield Infrastructure Partners L.P. | | | 3.6% | |
Vornado Realty Trust | | | 3.5% | |
Prologis, Inc. | | | 3.5% | |
Public Storage Incorporated | | | 3.2% | |
Pebblebrook Hotel Trust | | | 3.1% | |
| |
| | | | 38.6% | |
SECTOR BREAKDOWNASOF JUNE 30, 2021†
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six months ended June 30, 2021, Baron Real Estate Income Fund1 increased 16.44%, underperforming the MSCI US REIT Index, which increased 21.24%.
Baron Real Estate Income Fund is a non-diversified fund that under normal circumstances, invests at least 80% of its net assets in real estate income-producing securities and other real estate securities of any market capitalization, including common stocks and equity securities, debt and preferred securities, non-U.S. real
estate income-producing securities, and any other real estate-related yield securities. The Fund is likely to maintain a significant portion of its assets in real estate investment trusts (“REITs”). REITs pool money to invest in properties (“equity REITs”) or mortgages (“mortgage REITs”), and their revenue primarily consists of rent derived from owned, income producing real estate properties, and capital gains from the sale of such properties. The Fund generally invests in equity REITs. Of course, there can be no guarantee that we will be successful in achieving the Fund’s investment goals.
The first six months of 2021 saw a shift in leadership from growth to value stocks within real estate. After a sharp increase in equities that stood to benefit from a post-pandemic environment (the so-called “reopening trade”), returns were tied more closely to company earnings results. REITs outperformed the broader market as they benefited broadly from continued investor expectations of economic growth driven by the successful rollout of vaccines, anticipated pent-up demand from consumers and businesses, the expected recovery in employment, and federal stimulus payments.
Investments in non-REIT real estate companies, other REITs, and industrial REITs contributed the most. No category detracted.
Shares of top contributor Red Rock Resorts, Inc., an operator of casinos in the Las Vegas locals market, rose on reported EBITDA significantly above pre-pandemic levels and a complete recovery in revenue. Management has said that it thinks the margin expansion is sustainable given revenue levels and a reimagined cost structure. Robust free cash flow combined with the $650 million sale of its Palms casino, which is slated to close by the end of 2021, should help improve the balance sheet.
GDS Holdings Ltd. is a leading Chinese data center operator within Tier 1 cities. Shares detracted from performance due to the overall sell-off in Chinese technology-related companies given tightening government regulations, market concerns regarding supply/competition, and escalation of geopolitical tensions. We retain conviction in GDS given durable secular tailwinds in cloud adoption (early innings in China), increased visibility of growth, ample capital, and its status as a provider of choice to China’s leading technology companies.
The increasing pace of vaccinations, strong corporate earnings, favorable monetary policy and fiscal stimulus, and record cash levels held by both consumers and companies bode well for economic growth. While interest rates have increased, they remain low on a historic basis, and we expect investors to continue to search for yield, which should aid REITs, other dividend-yielding real estate companies, and real estate companies broadly. We believe this is an opportune time for active managers in real estate who have the flexibility to shift into growth areas while avoiding others facing a longer and more uncertain recovery.
| † | Sector levels are provided from the Global Industry Classification Standard (“GICS”), developed and exclusively owned by MSCI, Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects the results of Retail Shares. |
15
| | |
| Baron Health Care Fund (Unaudited) | | June 30, 2021 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON HEALTH CARE FUND (RETAIL SHARES)
INRELATIONTOTHE RUSSELL 3000 HEALTH CARE INDEXANDTHE S&P 500 INDEX
| | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED JUNE 30, 2021 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Since
Inception April 30,
2018) | |
Baron Health Care Fund — Retail Shares1,2 | | | 11.95% | | | | 46.14% | | | | 26.51% | | | | 26.82% | |
Baron Health Care Fund — Institutional Shares1,2 | | | 12.08% | | | | 46.51% | | | | 26.81% | | | | 27.14% | |
Baron Health Care Fund — R6 Shares1,2 | | | 12.08% | | | | 46.44% | | | | 26.83% | | | | 27.12% | |
Russell 3000 Health Care Index1 | | | 10.47% | | | | 29.49% | | | | 17.75% | | | | 17.98% | |
S&P 500 Index1 | | | 15.25% | | | | 40.79% | | | | 18.67% | | | | 18.73% | |
| 1 | The Russell 3000 Health Care Index is a free float-adjusted market capitalization index that measures the performance of all equity in the US equity market. The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. The indexes and Baron Health Care Fund are with dividends, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2031, 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. |
16
| | |
| June 30, 2021 (Unaudited) | | Baron Health Care Fund |
TOP TEN HOLDINGSASOF JUNE 30, 2021
| | | | |
| | | Percent of
Net Assets | |
UnitedHealth Group Incorporated | | | 6.0% | |
ICON Plc | | | 5.2% | |
Bio-Techne Corporation | | | 4.1% | |
Acceleron Pharma Inc. | | | 3.9% | |
Humana Inc. | | | 3.7% | |
argenx SE | | | 3.7% | |
Thermo Fisher Scientific Inc. | | | 3.3% | |
Edwards Lifesciences Corp. | | | 2.7% | |
Mettler-Toledo International, Inc. | | | 2.5% | |
Dechra Pharmaceuticals PLC | | | 2.5% | |
| |
| | | | 37.6% | |
SECTOR BREAKDOWNASOF JUNE 30, 2021†
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six months ended June 30, 2021, Baron Health Care Fund1 appreciated 11.95%, outperforming the Russell 3000 Health Care Index, which rose 10.47%.
Baron Health Care Fund is a non-diversified fund that under normal circumstances, invests at least 80% of its net assets in equity securities in the form of common stock of companies engaged in the research, development, production, sale, delivery
or distribution of products and services related to the health care industry. The Fund’s allocation among the different subsectors of the health care industry will vary depending upon the relative potential the Fund sees within each area. The Adviser seeks to invest in businesses it believes have significant growth opportunities, sustainable competitive advantages, exceptional management, and attractive valuations. The Fund may purchase securities of companies of any market capitalization and may invest in foreign stocks. Of course, there can be no guarantee that we will be successful in achieving the Fund’s investment goals.
Two significant events impacted the Health Care sector in the period. First, in a controversial decision, the FDA approved Biogen’s Alzheimer’s drug Aduhelm. Approval was based on a surrogate endpoint (the reduction of amyloid plaque in the brain) rather than evidence the drug slowed cognitive decline. This policy shift has positive implications for other neurodegenerative therapeutics companies. Second, Intellia Therapeutics announced the first instance of clinical data supporting the safety and efficacy of in vivo CRISPR genome editing in humans. While still early and involving a limited number of patients, the data indicates the potential for gene editing to cure diseases.
Life sciences tool & services, health care equipment, and biotechnology were the largest contributing sub-industries. Health care technology detracted slightly.
Top contributor Bio-Techne Corporation is a leading provider of high-quality purified proteins and protein analysis and other life sciences tools for biomedical researchers and clinical research laboratories. Shares rose during the period on two consecutive quarters of strong financial results. We continue to believe Bio-Techne has an attractive core life sciences reagents business with multiple additional growth drivers.
Top detractor BridgeBio Pharma, Inc. is a biotechnology company developing drugs addressing a host of genetic disorders. Shares fell on concerns around increasing competition. While we expect positive results from the Phase 3 trial for its lead program for TTR amyloidosis, a disease in which toxic proteins build up in the heart and nerves, updates from Alnylam’s competing drug, Vitrusiran, and more recently, Intellia’s gene editing platform, pressured the stock. We retain conviction given BridgeBio’s pipeline and diversified business model.
We expect developments in government policy that could impact health care stocks, including drug pricing reforms, higher corporate tax rates, and, possibly, enhancements to the Affordable Care Act. Despite these uncertainties, sector trends are positive. Biotechnology funding and new drug approvals are on record pace. Medical device and health care services companies are seeing a return to more normalized procedure volumes. Longer term, we believe health care is in a transformational period marked by rapid innovation and advances in science.
| † | Sector levels are provided from the Global Industry Classification Standard (“GICS”), developed and exclusively owned by MSCI, Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of the Retail Shares. |
17
| | |
| Baron FinTech Fund (Unaudited) | | June 30, 2021 |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON FINTECH FUND (RETAIL SHARES)
INRELATIONTOTHE S&P 500 INDEXANDTHE FACTSET GLOBAL FINTECH INDEX
| | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHEPERIODSENDED JUNE 30, 2021 | |
| | | Six
Months* | | | One
Year | | | Since
Inception December
31, 2019^ | |
Baron FinTech Fund — Retail Shares1,2 | | | 15.11% | | | | 46.53% | | | | 41.94% | |
Baron FinTech Fund — Institutional Shares1,2 | | | 15.29% | | | | 46.93% | | | | 42.27% | |
Baron FinTech Fund — R6 Shares1,2 | | | 15.21% | | | | 46.93% | | | | 42.27% | |
S&P 500 Index1 | | | 15.25% | | | | 40.79% | | | | 23.03% | |
FactSet Global FinTech Index1 | | | 8.32% | | | | 45.74% | | | | 28.69% | |
| ^ | Commencement of investment operations was January 2, 2020. |
| 1 | The S&P 500 Index measures the performance of 500 widely held large-cap U.S. companies. The FactSet Global FinTech Index is an unmanaged and equal-weighted index that measures the equity market performance of companies engaged in Financial Technologies, primarily in the areas of software and consulting, data and analytics, digital payment processing, money transfer, and payment transaction-related hardware, across 30 developed and emerging markets. The indexes and Baron FinTech Fund are with dividends, which positively impact the performance results. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. The Adviser reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2031, 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. |
18
| | |
| June 30, 2021 (Unaudited) | | Baron FinTech Fund |
TOP TEN HOLDINGSASOF JUNE 30, 2021
| | | | |
| | | Percent of
Net Assets | |
Intuit Inc. | | | 4.2% | |
PayPal Holdings, Inc. | | | 4.2% | |
Endava plc | | | 4.2% | |
Visa, Inc. | | | 4.1% | |
S&P Global Inc. | | | 3.7% | |
EPAM Systems, Inc. | | | 3.6% | |
Square, Inc. | | | 3.5% | |
Mastercard Incorporated | | | 3.4% | |
Dlocal Ltd. | | | 3.2% | |
Adyen N.V. | | | 3.2% | |
| |
| | | | 37.3% | |
SECTOR BREAKDOWNASOF JUNE 30, 2021†
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six months ended June 30, 2021, Baron FinTech Fund1 appreciated 15.11%, in line with the S&P 500 Index, which increased 15.25%.
Baron FinTech Fund is a non-diversified fund that invests in companies of any market capitalization that develop or use innovative technologies related in a significant way to financial services. The Fund invests principally in U.S. securities but may invest up to 25% in non-U.S. securities. Of course, there can be no guarantee that we will be successful in achieving the Fund’s investment goals.
The first half of 2021 was the most active period ever for FinTech financings. The 17 FinTech IPOs in the period is setting a pace ahead of 2020’s record of 23. In addition, 21 FinTechs have gone public via SPACs so far this year, already above last year’s record of 15. We have followed many of these FinTech companies for years while they were privately held and are thrilled to finally have the opportunity to invest in them. The large number of companies going public increases our opportunity set and casts a spotlight on the significant growth opportunities and pace of innovation in FinTech.
At the sector level, Information Technology and Financials contributed the most to performance. Consumer Discretionary and Communication Services detracted slightly.
Top contributor Dlocal Ltd. is a Uruguay-based financial technology company that enables cross-border and local-to-local e-commerce payments in 29 emerging market countries for global enterprise merchants. The company is experiencing fast growth, driven by increasing globalization of commerce, higher penetration of digital payments, and increasing purchasing power from middle-class consumers. Dlocal went public at the beginning of June at an attractive valuation and shares rose as demand exceeded supply.
P&C insurance software vendor Guidewire Software, Inc. was the top detractor. The stock price lagged along with other high-multiple growth stocks. The company is near the midpoint of its cloud transition, which should correspond with improving financial results. Despite short-term headwinds, we believe Guidewire has tripled its addressable market through new products and cloud delivery and will become the critical software vendor for the global P&C insurance industry, capturing 30% to 50% of its $15 billion to $30 billion total addressable market and generating margins above 40%.
Overall, we believe the outlook for FinTech is positive. In the near term, we expect reopening economies and higher consumer spending will support our Payments investments, a more favorable consumer credit environment will support our Information Services holdings, higher CEO confidence will lead to more investment in digital transformation projects, and low interest rates will support our long-duration growth investments. In the long term, we expect FinTech companies to benefit from secular growth trends such as the shift to electronic payments, the rise of e-commerce, the need for data and analytics to inform decision-making, the electronification of the capital markets, and the need for more modern technology and digital transformation in all areas of commerce.
| † | Sector levels are provided from the Global Industry Classification Standard (“GICS”), developed and exclusively owned by MSCI, Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| 1 | Performance information reflects results of the Retail Shares. |
19
| | |
| Baron Partners Fund | | June 30, 2021 |
STATEMENT OF NET ASSETS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (103.31%) | |
| Communication Services (9.50%) | |
| | | | Alternative Carriers (0.90%) | |
| | 1,550,000 | | | Iridium Communications, Inc.1 | | $ | 36,086,794 | | | $ | 61,984,500 | |
| | | |
| | | | Interactive Home Entertainment (1.09%) | | | | | | | | |
| | 790,000 | | | Activision Blizzard, Inc. | | | 46,068,301 | | | | 75,397,600 | |
| | | |
| | | | Interactive Media & Services (4.89%) | | | | | | | | |
| | 2,750,000 | | | Zillow Group, Inc., Cl A1 | | | 107,616,334 | | | | 336,957,500 | |
| |
| | | | Movies &
Entertainment (2.62%) | |
| | 5,978,371 | | | Manchester United plc, Cl A2 | | | 103,126,035 | | | | 90,811,455 | |
| | 325,000 | | | Spotify Technology SA1,2 | | | 74,931,790 | | | | 89,566,750 | |
| | | | | | | | | | | | |
| | | | 178,057,825 | | | | 180,378,205 | |
| | | | | | | | | | | | |
| | Total Communication Services | | | 367,829,254 | | | | 654,717,805 | |
| | | | | | | | | | | | |
| Consumer Discretionary (51.05%) | |
| | | | Automobile
Manufacturers (41.18%) | |
| | 4,175,000 | | | Tesla, Inc.1,5 | | | 188,464,376 | | | | 2,837,747,500 | |
| |
| | | | Casinos & Gaming (0.37%) | |
| | 600,000 | | | Red Rock Resorts, Inc., Cl A1 | | | 14,182,756 | | | | 25,500,000 | |
| |
| | | | Hotels, Resorts &
Cruise Lines (4.89%) | |
| | 2,900,000 | | | Hyatt Hotels Corp., Cl A1 | | | 84,480,627 | | | | 225,156,000 | |
| | 700,000 | | | Marriott Vacations
Worldwide Corp.1 | | | 81,762,309 | | | | 111,510,000 | |
| | | | | | | | | | | | |
| | | | 166,242,936 | | | | 336,666,000 | |
| |
| | | | Internet & Direct
Marketing Retail (0.02%) | |
| | 10,553 | | | Airbnb, Inc., Cl A1,4 | | | 717,604 | | | | 1,616,086 | |
| |
| | | | Leisure Facilities (4.59%) | |
| | 1,000,000 | | | Vail Resorts, Inc.1,6 | | | 48,702,009 | | | | 316,520,000 | |
| | | | | | | | | | | | |
| | Total Consumer Discretionary | | | 418,309,681 | | | | 3,518,049,586 | |
| | | | | | | | | | | | |
| Financials (13.53%) | |
| | | | Asset Management &
Custody Banks (1.13%) | |
| | 1,000,000 | | | Brookfield Asset
Management, Inc., Cl A2 | | | 35,923,845 | | | | 50,980,000 | |
| | 333,079 | | | Cohen & Steers, Inc. | | | 23,794,543 | | | | 27,342,455 | |
| | | | | | | | | | | | |
| | | | 59,718,388 | | | | 78,322,455 | |
| |
| | | | Reinsurance (0.01%) | |
| | 6,897 | | | Brookfield Asset Management Reinsurance Partners Ltd., Cl A1,2 | | | 365,517 | | | | 358,759 | |
| |
| | | | Financial Exchanges & Data (4.57%) | |
| | 700,000 | | | FactSet Research Systems, Inc. | | | 46,576,636 | | | | 234,927,000 | |
| | 150,000 | | | MSCI, Inc. | | | 37,181,742 | | | | 79,962,000 | |
| | | | | | | | | | | | |
| | | | 83,758,378 | | | | 314,889,000 | |
| |
| | | | Investment Banking &
Brokerage (4.12%) | |
| | 3,900,000 | | | The Charles Schwab Corp. | | | 86,233,677 | | | | 283,959,000 | |
| |
| | | | Property & Casualty
Insurance (3.70%) | |
| | 6,550,000 | | | Arch Capital Group Ltd.1,2 | | | 30,153,582 | | | | 255,057,000 | |
| | | | | | | | | | | | |
| | Total Financials | | | 260,229,542 | | | | 932,586,214 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Health Care (7.71%) | |
| | | | Biotechnology (0.38%) | |
| | 60,000 | | | BioNTech SE, ADR1,2 | | $ | 12,817,509 | | | $ | 13,432,800 | |
| | 55,000 | | | Moderna, Inc.1 | | | 9,305,078 | | | | 12,923,900 | |
| | | | | | | | | | | | |
| | | | 22,122,587 | | | | 26,356,700 | |
| |
| | | | Health Care Equipment (7.33%) | |
| | 800,000 | | | IDEXX Laboratories, Inc.1 | | | 35,048,046 | | | | 505,240,000 | |
| | | | | | | | | | | | |
| | Total Health Care | | | 57,170,633 | | | | 531,596,700 | |
| | | | | | | | | | | | |
| Industrials (9.30%) | |
| |
| | | | Aerospace & Defense (0.47%) | |
| | 125,625 | | | HEICO Corp. | | | 9,632,520 | | | | 17,514,637 | |
| | 116,875 | | | HEICO Corp., Cl A | | | 7,586,429 | | | | 14,513,538 | |
| | | | | | | | | | | | |
| | | | 17,218,949 | | | | 32,028,175 | |
| |
| | | | Research & Consulting
Services (8.83%) | |
| | 7,350,000 | | | CoStar Group, Inc.1 | | | 98,974,400 | | | | 608,727,000 | |
| | | | | | | | | | | | |
| | Total Industrials | | | 116,193,349 | | | | 640,755,175 | |
| | | | | | | | | | | | |
| Information Technology (9.98%) | |
| | | | Application Software (2.91%) | |
| | 124,287 | | | AppLovin Corp., Cl A1 | | | 9,942,960 | | | | 9,342,654 | |
| | 925,000 | | | Guidewire Software, Inc.1 | | | 74,997,711 | | | | 104,266,000 | |
| | 300,000 | | | RingCentral, Inc., Cl A1 | | | 78,500,510 | | | | 87,174,000 | |
| | | | | | | | | | | | |
| | | | | | | 163,441,181 | | | | 200,782,654 | |
| |
| | | | Data Processing & Outsourced
Services (2.11%) | |
| | 59,246 | | | Adyen N.V. , 144A (Netherlands)1,2,8 | | | 53,544,382 | | | | 145,290,709 | |
| |
| | | | Internet Services &
Infrastructure (2.50%) | |
| | 700,000 | | | GDS Holdings Limited, ADR1,2 | | | 37,434,005 | | | | 54,943,000 | |
| | 1,916,348 | | | GDS Holdings Limited, Cl A (Hong Kong)1,2,8 | | | 20,200,657 | | | | 18,823,624 | |
| | 67,500 | | | Shopify, Inc., Cl A1,2 | | | 48,766,450 | | | | 98,616,150 | |
| | | | | | | | | | | | |
| | | | | | | 106,401,112 | | | | 172,382,774 | |
| | |
| | | | IT Consulting &
Other Services (2.46%) | | | | | |
| | 700,000 | | | Gartner, Inc.1 | | | 83,980,674 | | | | 169,540,000 | |
| | | | | | | | | | | | |
| | Total Information Technology | | | 407,367,349 | | | | 687,996,137 | |
| | | | | | | | | | | | |
| Materials (0.41%) | |
| | | | Commodity Chemicals (0.41%) | |
| | 709,957 | | | Zymergen, Inc.1 | | | 22,586,992 | | | | 28,405,380 | |
| | | | | | | | | | | | |
| Real Estate (1.75%) | |
| | | | Office REITs (0.53%) | |
| | 1,085,000 | | | Douglas Emmett, Inc. | | | 29,974,652 | | | | 36,477,700 | |
| |
| | | | Specialized REITs (1.22%) | |
| | 1,819,296 | | | Gaming and Leisure Properties, Inc. | | | 57,585,382 | | | | 84,287,984 | |
| | | | | | | | | | | | |
| | Total Real Estate | | | 87,560,034 | | | | 120,765,684 | |
| | | | | | | | | | | | |
Special Purpose
Acquisition Company (0.08%) | |
| | 500,000 | | | Atlas Crest Investment Corp.1 | | | 5,000,000 | | | | 5,226,200 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 1,742,246,834 | | | | 7,120,098,881 | |
| | | | | | | | | | | | |
| | |
| 20 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Partners Fund |
STATEMENT OF NET ASSETS (Unaudited) (Continued)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Private Common Stocks (1.45%) | |
| Industrials (1.45%) | |
| | | | Aerospace & Defense (1.45%) | |
| | 221,631 | | | Space Exploration
Technologies Corp., Cl A1,3,4,9 | | $ | 29,920,185 | | | $ | 88,268,978 | |
| | 30,221 | | | Space Exploration
Technologies Corp., Cl C1,3,4,9 | | | 4,079,835 | | | | 12,036,118 | |
| | | | | | | | | | | | |
| | Total Private Common Stocks | | | 34,000,020 | | | | 100,305,096 | |
| | | | | | | | | |
| | | | | | | | | | | | |
| Private Convertible Preferred Stocks (0.11%) | |
| Industrials (0.11%) | |
| | | | Electrical Components &
Equipment (0.11%) | |
| | 21,213,656 | | | Northvolt AB, Series E2 (Sweden)1,2,3,4,9 | | | 7,843,621 | | | | 7,305,856 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Private Preferred Stocks (3.20%) | |
| Industrials (3.20%) | |
| | | | Aerospace & Defense (3.20%) | |
| | 311,111 | | | Space Exploration
Technologies Corp., Cl H1,3,4,9 | | | 41,999,985 | | | | 123,906,178 | |
| | 131,657 | | | Space Exploration
Technologies Corp., Cl I1,3,4,9 | | | 22,250,032 | | | | 52,435,033 | |
| | 111,111 | | | Space Exploration
Technologies Corp., Cl N1,3,4,9 | | | 29,999,970 | | | | 44,252,178 | |
| | | | | | | | | | | | |
| | Total Private Preferred Stocks | | | 94,249,987 | | | | 220,593,389 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Principal Amount | | Cost | | | Value | |
| Short Term Investments (0.07%) | |
| | $4,893,675 | | | Repurchase Agreement with Fixed Income Clearing Corp., dated 6/30/2021, 0.00% due 7/1/2021; Proceeds at maturity - $4,893,675; (Fully collateralized by $1,413,700 U.S. Treasury Bond, 5.25% due 11/15/2028 Market value - $1,812,352) and $2,877,400 U.S. Treasury Note, 2.625% due 2/15/2029 Market value - $3,179,258)8 | | $ | 4,893,675 | | | $ | 4,893,675 | |
| | | | | | | | | | | | |
| | Total Investments (108.14%) | | $ | 1,883,234,137 | | | | 7,453,196,897 | |
| | | | | | | | | | | | |
| | Liabilities Less Cash and Other Assets (-8.14%)7 | | | | (561,520,266 | ) |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 6,891,676,631 | |
| | | | | | | | | | | | |
| Retail Shares (Equivalent to $171.23 per share
based on 18,577,871 shares outstanding) |
| | $ | 3,181,133,847 | |
| | | | | | | | | | | | |
| Institutional Shares (Equivalent to $176.53 per share
based on 18,210,369 shares outstanding) |
| | $ | 3,214,676,405 | |
| | | | | | | | | | | | |
| R6 Shares (Equivalent to $176.52 per share
based on 2,809,121 shares outstanding) |
| | $ | 495,866,379 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | At June 30, 2021, the market value of restricted and fair valued securities amounted to $328,204,341 or 4.76% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities. |
| 4 | The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited). |
| 5 | Investors in the Fund may view Tesla, Inc.’s financial statements on the EDGAR website of the U.S. Securities and Exchange Commission by going to https://www.sec.gov/cgi-bin/browse-edgar?CIK=1318605&owner=exclude. Please note that the Fund is not responsible for Tesla’s financial statements and can provide no assurances as to their accuracy or completeness. |
| 6 | All or a portion of these securities are segregated for an unfunded commitment. Total value of securities segregated is $5,697,360. |
| 7 | Includes unrealized depreciation of $200,600 on an unfunded commitment with a special purpose acquisition company to purchase a when-issued private investment in a public entity. |
| 8 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| 9 | Level 3 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
| 144A | Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. At June 30, 2021, the market value of Rule 144A securities amounted to $145,290,709 or 2.11% of net assets. |
All securities are Level 1, unless otherwise noted.
| | |
| See Notes to Financial Statements. | | 21 |
| | |
| Baron Focused Growth Fund | | June 30, 2021 |
STATEMENT OF NET ASSETS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (91.51%) | |
| Communication Services (7.99%) | |
| | | | Alternative Carriers (2.33%) | |
| | 401,472 | | | Iridium Communications, Inc.1 | | $ | 2,949,375 | | | $ | 16,054,865 | |
| |
| | | | Movies & Entertainment (5.66%) | |
| | 1,027,365 | | | Manchester United plc, Cl A2 | | | 17,423,113 | | | | 15,605,675 | |
| | 85,000 | | | Spotify Technology SA1,2 | | | 20,386,545 | | | | 23,425,150 | |
| | | | | | | | | | | | |
| | | | 37,809,658 | | | | 39,030,825 | |
| | | | | | | | | | | | |
| | Total Communication Services | | | 40,759,033 | | | | 55,085,690 | |
| | | | | | | | | | | | |
| Consumer Discretionary (52.91%) | |
| | | | Automobile Manufacturers (31.64%) | |
| | 321,000 | | | Tesla, Inc.1,5 | | | 13,812,209 | | | | 218,183,700 | |
| |
| | | | Casinos & Gaming (7.53%) | |
| | 567,501 | | | Penn National Gaming, Inc.1 | | | 10,857,402 | | | | 43,408,151 | |
| | 201,100 | | | Red Rock Resorts, Inc., Cl A1 | | | 1,154,579 | | | | 8,546,750 | |
| | | | | | | | | | | | |
| | | | 12,011,981 | | | | 51,954,901 | |
| |
| | | | Hotels, Resorts & Cruise Lines (6.50%) | |
| | 155,000 | | | Choice Hotels International, Inc. | | | 5,375,923 | | | | 18,423,300 | |
| | 340,000 | | | Hyatt Hotels Corp., Cl A1 | | | 12,201,302 | | | | 26,397,600 | |
| | | | | | | | | | | | |
| | | | 17,577,225 | | | | 44,820,900 | |
| |
| | | | Internet & Direct Marketing
Retail (1.09%) | |
| | 125,000 | | | Stitch Fix, Inc., Cl A1 | | | 6,165,914 | | | | 7,537,500 | |
| |
| | | | Leisure Facilities (6.15%) | |
| | 134,000 | | | Vail Resorts, Inc.1,6 | | | 8,130,896 | | | | 42,413,680 | |
| | | | | | | | | | | | |
| | Total Consumer Discretionary | | | 57,698,225 | | | | 364,910,681 | |
| | | | | | | | | | | | |
| Financials (7.04%) | |
| | | | Financial Exchanges & Data (3.65%) | | | | | |
| | 75,000 | | | FactSet Research Systems, Inc. | | | 5,828,282 | | | | 25,170,750 | |
| | |
| | | | Property & Casualty Insurance (3.39%) | | | | | |
| | 600,000 | | | Arch Capital Group Ltd.1,2 | | | 12,581,802 | | | | 23,364,000 | |
| | | | | | | | | | | | |
| | Total Financials | | | 18,410,084 | | | | 48,534,750 | |
| | | | | | | | | | | | |
| Health Care (8.49%) | |
| | | | Biotechnology (5.05%) | |
| | 110,000 | | | BioNTech SE, ADR1,2 | | | 11,883,637 | | | | 24,626,800 | |
| | 130,000 | | | Denali Therapeutics, Inc.1 | | | 8,709,748 | | | | 10,197,200 | |
| | | | | | | | | | | | |
| | | | 20,593,385 | | | | 34,824,000 | |
| |
| | | | Health Care Supplies (2.12%) | |
| | 292,000 | | | Figs, Inc., Cl A1 | | | 8,977,596 | | | | 14,629,200 | |
| |
| | | | Health Care Technolgy (1.32%) | |
| | 120,000 | | | Schrödinger, Inc.1 | | | 9,877,963 | | | | 9,073,200 | |
| | | | | | | | | | | | |
| | Total Health Care | | | 39,448,944 | | | | 58,526,400 | |
| | | | | | | | | | | | |
| Industrials (7.44%) | |
| | | | Research & Consulting Services (7.44%) | | | | | |
| | 620,000 | | | CoStar Group, Inc.1 | | | 11,035,717 | | | | 51,348,400 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Information Technology (5.74%) | |
| | | | Application Software (1.67%) | |
| | 101,870 | | | Guidewire Software, Inc.1 | | $ | 4,816,691 | | | $ | 11,482,786 | |
| |
| | | | Data Processing & Outsourced
Services (2.08%) | |
| | 5,854 | | | Adyen N.V. (Netherlands), 144A1,2,8 | | | 5,352,874 | | | | 14,355,937 | |
| |
| | | | Internet Services &
Infrastructure (1.99%) | |
| | 175,000 | | | GDS Holdings Limited, ADR1,2 | | | 12,381,692 | | | | 13,735,750 | |
| | | | | | | | | | | | |
| | Total Information Technology | | | 22,551,257 | | | | 39,574,473 | |
| | | | | | | | | | | | |
| Real Estate (1.90%) | |
| | | | Residential REITs (1.27%) | |
| | 225,000 | | | American Homes 4 Rent, Cl A | | | 4,700,804 | | | | 8,741,250 | |
| |
| | | | Specialized REITs (0.63%) | |
| | 115,000 | | | Americold Realty Trust4 | | | 3,907,873 | | | | 4,352,750 | |
| | | | | | | | | | | | |
| | Total Real Estate | | | 8,608,677 | | | | 13,094,000 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 198,511,937 | | | | 631,074,394 | |
| | | | | | | | | |
| | | | | | | | | | | | |
| Private Common Stocks (1.37%) | |
| Industrials (1.37%) | |
| | | | Aerospace & Defense (1.37%) | |
| | 20,859 | | | Space Exploration Technologies Corp., Cl A1,3,4,9 | | | 2,815,965 | | | | 8,307,514 | |
| | 2,844 | | | Space Exploration Technologies Corp., Cl C1,3,4,9 | | | 383,940 | | | | 1,132,680 | |
| | | | | | | | | | | | |
| | Total Private Common Stocks | | | 3,199,905 | | | | 9,440,194 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Private Preferred Stocks (2.33%) | |
| Industrials (2.33%) | |
| | | | Aerospace & Defense (2.33%) | |
| | 29,630 | | | Space Exploration Technologies Corp., Cl H1,3,4,9 | | | 4,000,050 | | | | 11,800,740 | |
| | 1,479 | | | Space Exploration Technologies Corp., Cl I1,3,4,9 | | | 249,951 | | | | 589,041 | |
| | 9,259 | | | Space Exploration Technologies Corp., Cl N1,3,4,9 | | | 2,499,930 | | | | 3,687,582 | |
| | | | | | | | | | | | |
| | Total Private Preferred Stocks | | | 6,749,931 | | | | 16,077,363 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | |
| 22 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Focused Growth Fund |
STATEMENT OF NET ASSETS (Unaudited) (Continued)
| | | | | | | | | | | | |
| Principal Amount | | Cost | | | Value | |
| Short Term Investments (4.72%) | |
| | $32,549,272 | | | Repurchase Agreement with Fixed Income Clearing Corp., dated 6/30/2021, 0.00% due 7/1/2021; Proceeds at maturity - $32,549,272; (Fully collateralized by $25,897,400 U.S. Treasury Bond, 5.25% due 11/15/2028 Market value - $33,200,260)8 | | $ | 32,549,272 | | | $ | 32,549,272 | |
| | | | | | | | | | | | |
| | Total Investments (99.93%) | | $ | 241,011,045 | | | | 689,141,223 | |
| | | | | | | | | | | | |
| | Cash and Other Assets Less Liabilities (0.07%)7 | | | | 507,327 | |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 689,648,550 | |
| | | | | | | | | | | | |
| Retail Shares (Equivalent to $44.40 per share
based on 3,972,304 shares outstanding) |
| | $ | 176,355,662 | |
| | | | | | | | | | | | |
| Institutional Shares (Equivalent to $45.69 per share
based on 5,144,669 shares outstanding) |
| | $ | 235,067,117 | |
| | | | | | | | | | | | |
| R6 Shares (Equivalent to $45.72 per share
based on 6,085,577 shares outstanding) |
| | $ | 278,225,771 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | At June 30, 2021, the market value of restricted and fair valued securities amounted to $25,517,557 or 3.70% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities. |
| 4 | The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited). |
| 5 | Investors in the Fund may view Tesla, Inc.’s financial statements on the EDGAR website of the U.S. Securities and Exchange Commission by going to https://www.sec.gov/cgi-bin/browse-edgar?CIK=1318605&owner=exclude. Please note that the Fund is not responsible for Tesla’s financial statementsand can provide no assurances as to their accuracy or completeness. |
| 6 | All or a portion of these securities are segregated for an unfunded commitment. Total value of securities segregated is $11,078,200. |
| 7 | Includes unrealized appreciation of $154,900 on an unfunded commitment with a special purpose acquisition company to purchase a when-issued private investment in a public entity. |
| 8 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| 9 | Level 3 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
| 144A | Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. At June 30, 2021, the market value of Rule 144A securities amounted to $14,355,937 or 2.08% of net assets. |
All securities are Level 1, unless otherwise noted.
| | |
| See Notes to Financial Statements. | | 23 |
| | |
| Baron International Growth Fund | | June 30, 2021 |
STATEMENT OF NET ASSETS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (95.40%) | |
| Australia (0.80%) | |
| | 644,822 | | | NEXTDC Limited1,5 | | $ | 3,195,309 | | | $ | 5,738,069 | |
| | | | | | | | | | | | |
| Brazil (4.62%) | |
| | 203,670 | | | Afya Ltd., Cl A1 | | | 4,052,790 | | | | 5,250,613 | |
| | 120,934 | | | Arco Platform Limited, Cl A1 | | | 3,928,368 | | | | 3,707,836 | |
| | 758,451 | | | Itaú Unibanco Holding SA, ADR | | | 3,560,256 | | | | 4,558,290 | |
| | 271,714 | | | Notre Dame Intermedica
Participacoes S.A. | | | 3,091,592 | | | | 4,639,646 | |
| | 70,011 | | | StoneCo Ltd., Cl A1 | | | 4,690,522 | | | | 4,694,938 | |
| | 492,212 | | | Suzano SA1 | | | 4,494,408 | | | | 5,918,855 | |
| | 105,119 | | | XP, Inc., Cl A1 | | | 3,744,284 | | | | 4,577,932 | |
| | | | | | | | | | | | |
| | Total Brazil | | | 27,562,220 | | | | 33,348,110 | |
| | | | | | | | | | | | |
| Canada (1.92%) | |
| | 168,186 | | | CAE, Inc.1 | | | 2,082,977 | | | | 5,180,172 | |
| | 5,753 | | | Constellation Software, Inc. | | | 1,761,296 | | | | 8,713,085 | |
| | | | | | | | | | | | |
| | Total Canada | | | 3,844,273 | | | | 13,893,257 | |
| | | | | | | | | | | | |
| China (10.88%) | |
| | 36,118 | | | Alibaba Group Holding Limited, ADR1,3 | | | 6,452,603 | | | | 8,190,840 | |
| | 955,387 | | | China Conch Venture Holdings Ltd.5 | | | 4,199,666 | | | | 4,019,846 | |
| | 68,159 | | | China Tourism Group Duty Free Corporation Limited, Cl A5 | | | 775,658 | | | | 3,161,444 | |
| | 625,178 | | | Galaxy Entertainment Group Ltd.1,5 | | | 4,744,733 | | | | 4,998,976 | |
| | 29,333 | | | GDS Holdings Limited, ADR1 | | | 1,256,623 | | | | 2,302,347 | |
| | 153,308 | | | GDS Holdings Limited, Cl A (Hong Kong)1,5 | | | 1,616,054 | | | | 1,505,891 | |
| | 585,931 | | | Han’s Laser Technology Industry Group Co., Ltd., Cl A5 | | | 3,140,221 | | | | 3,659,604 | |
| | 597,906 | | | Hua Hong Semiconductor Limited, 144A1,5 | | | 1,399,011 | | | | 3,300,855 | |
| | 1,543,374 | | | Kingdee International Software Group Co. Ltd.1,5 | | | 1,375,808 | | | | 5,227,195 | |
| | 749,180 | | | Kingsoft Corp. Ltd.5 | | | 3,177,602 | | | | 4,486,761 | |
| | 248,925 | | | Midea Group Co., Ltd., Cl A5 | | | 1,766,612 | | | | 2,745,786 | |
| | 57,639 | | | Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Cl A5 | | | 1,625,815 | | | | 4,274,123 | |
| | 120,824 | | | Tencent Holdings Limited5 | | | 6,132,637 | | | | 9,097,138 | |
| | 17,588 | | | Tencent Holdings Limited, ADR | | | 832,623 | | | | 1,324,376 | |
| | 103,143 | | | Will Semiconductor Co. Ltd. Shanghai, Cl A5 | | | 3,692,074 | | | | 5,128,105 | |
| | 1,298,975 | | | Winning Health Technology
Group Co. Ltd., Cl A5 | | | 3,641,404 | | | | 3,267,281 | |
| | 67,094 | | | Zai Lab Limited, ADR1 | | | 1,585,596 | | | | 11,874,967 | |
| | | | | | | | | | | | |
| | Total China | | | 47,414,740 | | | | 78,565,535 | |
| | | | | | | | | | | | |
| Denmark (1.04%) | |
| | 183,153 | | | Genmab A/S, ADR1 | | | 7,473,667 | | | | 7,478,137 | |
| | | | | | | | | | | | |
| France (8.14%) | |
| | 319,942 | | | BNP Paribas S.A.5 | | | 14,662,429 | | | | 20,079,442 | |
| | 91,320 | | | Eurofins Scientific SE1,5 | | | 2,327,909 | | | | 10,445,060 | |
| | 14,509 | | | LVMH Moët Hennessy Louis Vuitton SE5 | | | 4,811,986 | | | | 11,413,603 | |
| | 42,741 | | | Pernod Ricard SA5 | | | 8,264,435 | | | | 9,499,714 | |
| | 218,710 | | | Vivendi SA5 | | | 5,883,632 | | | | 7,348,463 | |
| | | | | | | | | | | | |
| | Total France | | | 35,950,391 | | | | 58,786,282 | |
| | | | | | | | | | | | |
| Germany (3.60%) | |
| | 146,490 | | | Befesa SA, 144A5 | | | 7,071,613 | | | | 11,258,620 | |
| | 60,194 | | | Symrise AG5 | | | 5,218,374 | | | | 8,388,437 | |
| | 168,057 | | | TeamViewer AG, 144A1,5 | | | 6,563,059 | | | | 6,311,705 | |
| | | | | | | | | | | | |
| | Total Germany | | | 18,853,046 | | | | 25,958,762 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Hong Kong (0.75%) | |
| | 311,500 | | | Techtronic Industries Co. Ltd.5 | | $ | 2,131,519 | | | $ | 5,428,500 | |
| | | | | | | | | | | | |
| India (6.81%) | |
| | 140,002 | | | Bajaj Finance Limited1,5 | | | 7,057,302 | | | | 11,355,389 | |
| | 2,458,770 | | | Edelweiss Financial Services Ltd.1,5 | | | 2,033,042 | | | | 2,397,347 | |
| | 279,909 | | | Godrej Properties Ltd.1,5 | | | 3,762,871 | | | | 5,270,576 | |
| | 179,037 | | | HDFC Bank Ltd.5 | | | 2,695,614 | | | | 3,616,162 | |
| | 125,802 | | | Housing Development Finance Corp., Ltd.5 | | | 3,530,942 | | | | 4,198,409 | |
| | 2,171,478 | | | JM Financial Limited5 | | | 2,615,303 | | | | 2,591,446 | |
| | 70,627 | | | Kotak Mahindra Bank Ltd.1,5 | | | 1,217,705 | | | | 1,623,435 | |
| | 548,081 | | | Max Financial Services Limited1,5 | | | 3,895,199 | | | | 7,825,052 | |
| | 681,376 | | | Nippon Life India Asset Management Ltd., 144A5 | | | 2,395,677 | | | | 3,359,539 | |
| | 233,839 | | | Reliance Industries Limited5 | | | 5,093,394 | | | | 6,649,530 | |
| | 12,984 | | | Reliance Industries Limited PP5 | | | 115,279 | | | | 260,365 | |
| | | | | | | | | | | | |
| | Total India | | | 34,412,328 | | | | 49,147,250 | |
| | | | | | | | | | | | |
| Israel (3.59%) | |
| | 128,423 | | | ION Acquisition Corp. 2 Limited1 | | | 1,284,230 | | | | 1,295,788 | |
| | 150,000 | | | ION Acquisition Corp. 3 Limited, Cl A1 | | | 1,500,000 | | | | 1,471,500 | |
| | 12,905 | | | monday.com Ltd.1 | | | 2,054,845 | | | | 2,885,429 | |
| | 166,042 | | | SimilarWeb Ltd.1 | | | 3,584,739 | | | | 3,271,027 | |
| | 200,450 | | | Taboola.com Ltd.1 | | | 1,931,400 | | | | 2,074,657 | |
| | 229,509 | | | Taboola.com Ltd. (formerly, ION Acquisition Corp. 1 Limited)1,2,6 | | | 2,295,090 | | | | 2,290,500 | |
| | 152,785 | | | Tower Semiconductor Ltd.1 | | | 3,043,112 | | | | 4,496,463 | |
| | 28,060 | | | Wix.com Ltd.1 | | | 3,231,212 | | | | 8,145,257 | |
| | | | | | | | | | | | |
| | Total Israel | | | 18,924,628 | | | | 25,930,621 | |
| | | | | | | | | | | | |
| Japan (10.01%) | |
| | 77,173 | | | Advantest Corporation5 | | | 4,104,008 | | | | 6,929,117 | |
| | 29,100 | | | FANUC Corp.5 | | | 4,834,548 | | | | 6,978,117 | |
| | 17,843 | | | Keyence Corporation5 | | | 5,478,737 | | | | 8,986,147 | |
| | 231,600 | | | MonotaRO Co, Ltd.5 | | | 2,363,486 | | | | 5,457,563 | |
| | 118,160 | | | Nexon Co, Ltd.5 | | | 1,759,983 | | | | 2,629,593 | |
| | 104,365 | | | Okamoto Industries, Inc.5 | | | 4,791,854 | | | | 3,852,864 | |
| | 177,000 | | | Recruit Holdings Co, Ltd.5 | | | 4,885,462 | | | | 8,679,861 | |
| | 188,200 | | | SMS Co. Ltd.5 | | | 5,152,739 | | | | 5,623,909 | |
| | 28,316 | | | Sony Corporation, ADR | | | 1,017,216 | | | | 2,752,881 | |
| | 64,800 | | | Square Enix Holdings Co, Ltd.5 | | | 2,218,353 | | | | 3,200,139 | |
| | 302,300 | | | Takeda Pharmaceutical
Company Limited5 | | | 11,976,315 | | | | 10,145,354 | |
| | 16,302 | | | Tokyo Electron Limited5 | | | 3,928,027 | | | | 7,048,727 | |
| | | | | | | | | | | | |
| | Total Japan | | | 52,510,728 | | | | 72,284,272 | |
| | | | | | | | | | | | |
| Korea, Republic of (1.48%) | |
| | 89,715 | | | Korea Shipbuilding & Offshore Engineering Co. Ltd.1,5 | | | 8,515,646 | | | | 10,670,668 | |
| | | | | | | | | | | | |
| Mexico (0.78%) | |
| | 1,191,220 | | | Grupo México S.A.B. de C.V., Series B | | | 3,208,027 | | | | 5,614,881 | |
| | | | | | | | | | | | |
| Netherlands (4.17%) | |
| | 290,160 | | | AMG Advanced Metallurgical Group NV5 | | | 9,044,500 | | | | 9,949,406 | |
| | 43,181 | | | argenx SE, ADR1 | | | 1,904,769 | | | | 13,000,504 | |
| | 38,366 | | | Koninklijke DSM NV5 | | | 5,145,464 | | | | 7,171,874 | |
| | | | | | | | | | | | |
| | Total Netherlands | | | 16,094,733 | | | | 30,121,784 | |
| | | | | | | | | | | | |
| Norway (0.79%) | |
| | 431,796 | | | Golar LNG Ltd.1 | | | 6,252,146 | | | | 5,721,297 | |
| | | | | | | | | | | | |
| Poland (0.73%) | |
| | 263,772 | | | InPost SA1 | | | 5,175,660 | | | | 5,293,906 | |
| | | | | | | | | | | | |
| | |
| 24 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron International Growth Fund |
STATEMENT OF NET ASSETS (Unaudited) (Continued)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Russia (4.78%) | |
| | 2,571,069 | | | Detsky Mir PJSC, 144A5 | | $ | 3,841,525 | | | $ | 5,308,229 | |
| | 36,018 | | | Novatek PJSC, GDR | | | 5,452,498 | | | | 7,898,748 | |
| | 1,100 | | | Novatek PJSC, GDR (London)5 | | | 153,019 | | | | 241,377 | |
| | 333,867 | | | Sberbank of Russia PJSC, ADR5 | | | 3,957,007 | | | | 5,547,864 | |
| | 177,534 | | | TCS Group Holding PLC, GDR | | | 4,902,171 | | | | 15,534,225 | |
| | | | | | | | | | | | |
| | Total Russia | | | 18,306,220 | | | | 34,530,443 | |
| | | | | | | | | | | | |
| Spain (2.60%) | |
| | 111,195 | | | Cellnex Telecom S.A., 144A5 | | | 6,227,391 | | | | 7,092,155 | |
| | 449,476 | | | eDreams ODIGEO SA1 | | | 3,698,968 | | | | 3,618,841 | |
| | 227,691 | | | Industria de Diseno Textil, S.A.5 | | | 7,335,086 | | | | 8,039,042 | |
| | | | | | | | | | | | |
| | Total Spain | | | 17,261,445 | | | | 18,750,038 | |
| | | | | | | | | | | | |
| Sweden (2.84%) | |
| | 328,985 | | | Epiroc AB, Cl A5 | | | 5,190,793 | | | | 7,488,899 | |
| | 30,000 | | | Hemnet Group AB1 | | | 412,112 | | | | 674,799 | |
| | 19,316 | | | Spotify Technology SA1 | | | 2,790,396 | | | | 5,323,296 | |
| | 558,825 | | | Telefonaktiebolaget LM Ericsson, ADR | | | 5,191,588 | | | | 7,030,019 | |
| | | | | | | | | | | | |
| | Total Sweden | | | 13,584,889 | | | | 20,517,013 | |
| | | | | | | | | | | | |
| Switzerland (4.21%) | |
| | 376,689 | | | Clariant AG5 | | | 7,747,136 | | | | 7,500,733 | |
| | 43,150 | | | Compagnie Financiere Richemont SA5 | | | 5,086,461 | | | | 5,231,013 | |
| | 951,966 | | | Credit Suisse Group AG5 | | | 10,237,832 | | | | 9,965,109 | |
| | 61,830 | | | Nestle S.A.5 | | | 6,496,788 | | | | 7,706,928 | |
| | | | | | | | | | | | |
| | Total Switzerland | | | 29,568,217 | | | | 30,403,783 | |
| | | | | | | | | | | | |
| United Arab Emirates (0.21%) | |
| | 294,649 | | | Network International
Holdings plc, 144A1,5 | | | 1,471,622 | | | | 1,492,852 | |
| | | | | | | | | | | | |
| United Kingdom (16.85%) | |
| | 144,508 | | | AstraZeneca PLC, ADR | | | 5,429,097 | | | | 8,656,029 | |
| | 920,893 | | | B&M European Value Retail S.A.5 | | | 4,218,892 | | | | 7,310,832 | |
| | 98,806 | | | Dechra Pharmaceuticals PLC | | | 3,329,156 | | | | 5,972,843 | |
| | 97,910 | | | Endava plc, ADR1 | | | 2,300,130 | | | | 11,101,036 | |
| | 152,703 | | | Experian plc5 | | | 3,184,532 | | | | 5,895,732 | |
| | 442,543 | | | Future PLC | | | 7,584,254 | | | | 19,173,156 | |
| | 1,581,932 | | | Glencore PLC5 | | | 6,554,498 | | | | 6,789,793 | |
| | 379,691 | | | J D Wetherspoon PLC1 | | | 4,481,096 | | | | 6,187,169 | |
| | 39,713 | | | Linde Public Limited Company5 | | | 7,560,276 | | | | 11,482,219 | |
| | 19,779,279 | | | Lloyds Banking Group PLC5 | | | 7,967,123 | | | | 12,794,345 | |
| | 1,865,252 | | | S4 Capital PLC1 | | | 6,064,102 | | | | 16,203,675 | |
| | 435,206 | | | WANdisco plc1,5 | | | 3,773,599 | | | | 2,319,649 | |
| | 674,144 | | | Watches of Switzerland
Group PLC, 144A1 | | | 5,999,471 | | | | 7,796,063 | |
| | | | | | | | | | | | |
| | Total United Kingdom | | | 68,446,226 | | | | 121,682,541 | |
| | | | | | | | | | | | |
| United States (2.27%) | |
| | 54,278 | | | Agilent Technologies, Inc. | | | 2,697,622 | | | | 8,022,831 | |
| | 215,344 | | | Arch Capital Group Ltd.1 | | | 4,878,484 | | | | 8,385,495 | |
| | | | | | | | | | | | |
| | Total United States | | | 7,576,106 | | | | 16,408,326 | |
| | | | | | | | | | | | |
| Uruguay (1.53%) | |
| | 210,911 | | | Dlocal Ltd., Cl A1 | | | 4,621,639 | | | | 11,079,155 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 452,355,425 | | | | 688,845,482 | |
| | | | | | | | | |
| | | | | | | | | | | | |
| Warrants (0.02%) | |
| Israel (0.02%) | |
| | 56,745 | | | Taboola.com Ltd. Exp 10/5/20271 | | | 104,540 | | | | 175,909 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Principal Amount | | Cost | | | Value | |
| Convertible Bonds (0.06%) | |
| Switzerland (0.06%) | |
| | $350,000 | | | Credit Suisse Group Guernsey VII Ltd., 144A, 3.00% due 11/12/20215 | | $ | 385,399 | | | $ | 425,977 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
| Principal Amount | | | | | | |
| Short Term Investments (4.63%) | |
| | $33,446,185 | | | Repurchase Agreement with Fixed Income Clearing Corp., dated 6/30/2021, 0.00% due 7/1/2021; Proceeds at maturity - $33,446,185; (Fully collateralized by $29,656,200 U.S. Treasury Note, 3.125% due 11/15/2028; Market value - $33,623,881) and $383,200 U.S. Treasury Bond, 5.25% due 11/15/2028 Market value - $491,259)5 | | | 33,446,185 | | | | 33,446,185 | |
| | | | | | | | | | | | |
| | Total Investments (100.11%) | | $ | 486,291,549 | | | | 722,893,553 | |
| | | | | | | | | | | | |
| | Liabilities Less Cash and Other Assets (-0.11%)4 | | | | (791,905 | ) |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 722,101,648 | |
| | | | | | | | | | | | |
| Retail Shares (Equivalent to $35.46 per share
based on 2,687,157 shares outstanding) |
| | $ | 95,290,209 | |
| | | | | | | | | | | | |
| Institutional Shares (Equivalent to $36.10 per share
based on 12,916,857 shares outstanding) |
| | $ | 466,326,420 | |
| | | | | | | | | | | | |
| R6 Shares (Equivalent to $36.08 per share
based on 4,447,583 shares outstanding) |
| | $ | 160,485,019 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 2 | At June 30, 2021, the market value of restricted and fair valued securities amounted to $2,290,500 or 0.32% of net assets. This security is not deemed liquid. See Note 6 regarding Restricted Securities. |
| 3 | All or a portion of these securities are segregated for an unfunded commitment. Total value of securities segregated is $5,669,500. |
| 4 | Includes unrealized depreciation of $451,750 on an unfunded commitment with a special purpose acquisition company to purchase a when-issued private investment in a public entity. |
| 5 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| 6 | Level 3 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
| GDR | Global Depositary Receipt. |
| 144A | Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. At June 30, 2021, the market value of Rule 144A securities amounted to $46,345,995 or 6.42% of net assets. |
All securities are Level 1, unless otherwise noted.
| | |
| See Notes to Financial Statements. | | 25 |
| | |
| Baron International Growth Fund | | June 30, 2021 |
STATEMENT OF NET ASSETS (Unaudited) (Continued)
| | | | |
Summary of Investments by Sector
as of June 30, 2021 | | Percentage of
Net Assets | |
| |
Information Technology | | | 16.9 | % |
| |
Financials | | | 16.5 | |
| |
Health Care | | | 12.1 | |
| |
Consumer Discretionary | | | 11.9 | |
| |
Industrials | | | 11.9 | |
| |
Communication Services | | | 10.6 | |
| |
Materials | | | 9.2 | |
| |
Energy | | | 2.9 | |
| |
Consumer Staples | | | 2.4 | |
| |
Real Estate | | | 0.7 | |
| |
Special Purpose Acquisition Company | | | 0.4 | |
| |
Cash and Cash Equivalents* | | | 4.5 | |
| | | | 100.0 | % |
| * | Includes short term investments. |
| | |
| 26 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Real Estate Fund |
STATEMENT OF NET ASSETS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (97.68%) | |
| Communication Services (6.17%) | |
| | | | Integrated Telecommunication Services (2.06%) | | | | | | | | |
| | 574,496 | | | Cellnex Telecom S.A., 144A (Spain)2,8 | | $ | 31,932,710 | | | $ | 36,642,068 | |
| | | |
| | | | Interactive Media & Services (4.11%) | | | | | | | | |
| | 677,654 | | | Tripadvisor, Inc.1 | | | 23,938,338 | | | | 27,309,456 | |
| | 376,260 | | | Zillow Group, Inc., Cl C1 | | | 34,108,751 | | | | 45,986,497 | |
| | | | | | | | | | | | |
| | | | 58,047,089 | | | | 73,295,953 | |
| | | | | | | | | | | | |
| | Total Communication Services | | | 89,979,799 | | | | 109,938,021 | |
| | | | | | | | | | | | |
| Consumer Discretionary (31.84%) | |
| | | |
| | | | Casinos & Gaming (13.11%) | | | | | | | | |
| | 796,400 | | | Boyd Gaming Corporation1 | | | 19,022,908 | | | | 48,970,636 | |
| | 775,600 | | | Las Vegas Sands Corp.1 | | | 40,460,982 | | | | 40,866,364 | |
| | 1,206,989 | | | Melco Resorts &
Entertainment Ltd., ADR1,2 | | | 20,494,063 | | | | 19,999,808 | |
| | 406,260 | | | Penn National Gaming, Inc.1 | | | 12,646,682 | | | | 31,074,827 | |
| | 1,430,417 | | | Red Rock Resorts, Inc., Cl A1 | | | 16,953,492 | | | | 60,792,723 | |
| | 261,647 | | | Wynn Resorts Ltd. 1 | | | 19,222,735 | | | | 31,999,428 | |
| | | | | | | | | | | | |
| | | | 128,800,862 | | | | 233,703,786 | |
| | | |
| | | | Distributors (0.56%) | | | | | | | | |
| | 21,850 | | | Pool Corp. | | | 4,370,642 | | | | 10,021,721 | |
| | | |
| | | | Home Improvement Retail (4.06%) | | | | | | | | |
| | 60,050 | | | The Home Depot, Inc. | | | 12,361,385 | | | | 19,149,345 | |
| | 274,750 | | | Lowe’s Companies, Inc. | | | 41,151,066 | | | | 53,293,257 | |
| | | | | | | | | | | | |
| | | | 53,512,451 | | | | 72,442,602 | |
| | | |
| | | | Homebuilding (3.32%) | | | | | | | | |
| | 106,647 | | | D.R. Horton, Inc. | | | 3,458,125 | | | | 9,637,689 | |
| | 164,373 | | | Installed Building Products, Inc. | | | 8,986,233 | | | | 20,112,680 | |
| | 196,900 | | | Lennar Corp., Cl A | | | 12,601,875 | | | | 19,562,015 | |
| | 171,250 | | | Toll Brothers, Inc. | | | 5,729,225 | | | | 9,899,963 | |
| | | | | | | | | | | | |
| | | | 30,775,458 | | | | 59,212,347 | |
| | | |
| | | | Hotels, Resorts & Cruise Lines (6.43%) | | | | | | | | |
| | 867,373 | | | Hilton Grand Vacations, Inc.1 | | | 24,840,939 | | | | 35,900,568 | |
| | 278,736 | | | Marriott Vacations Worldwide Corp.1 | | | 30,447,751 | | | | 44,402,645 | |
| | 576,697 | | | Travel + Leisure Co. | | | 36,383,336 | | | | 34,284,637 | |
| | | | | | | | | | | | |
| | | | 91,672,026 | | | | 114,587,850 | |
| | | |
| | | | Leisure Facilities (2.41%) | | | | | | | | |
| | 145,650 | | | SeaWorld Entertainment, Inc.1 | | | 2,658,980 | | | | 7,273,761 | |
| | 825,424 | | | Six Flags Entertainment Corp.1 | | | 24,010,256 | | | | 35,724,351 | |
| | | | | | | | | | | | |
| | | | 26,669,236 | | | | 42,998,112 | |
| | | |
| | | | Leisure Products (1.95%) | | | | | | | | |
| | 1,090,000 | | | Latham Group, Inc.1 | | | 20,710,000 | | | | 34,836,400 | |
| | | | | | | | | | | | |
| | Total Consumer Discretionary | | | 356,510,675 | | | | 567,802,818 | |
| | | | | | | | | | | | |
| Financials (3.43%) | |
| | | |
| | | | Asset Management & Custody Banks (3.41%) | | | | | | | | |
| | 1,190,557 | | | Brookfield Asset Management, Inc., Cl A2 | | | 37,559,581 | | | | 60,694,596 | |
| | | |
| | | | Reinsurance (0.02%) | | | | | | | | |
| | 7,866 | | | Brookfield Asset Management Reinsurance Partners Ltd., Cl A1,2 | | | 416,893 | | | | 409,185 | |
| | | | | | | | | | | | |
| | Total Financials | | | 37,976,474 | | | | 61,103,781 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Industrials (7.10%) | |
| | | |
| | | | Building Products (3.97%) | | | | | | | | |
| | 620,101 | | | AZEK Co., Inc.1 | | $ | 24,649,657 | | | $ | 26,329,488 | |
| | 228,100 | | | Fortune Brands Home &
Security, Inc. | | | 17,288,986 | | | | 22,721,041 | |
| | 208,138 | | | Janus International Group, Inc.1 | | | 2,934,364 | | | | 2,940,990 | |
| | 1,000,000 | | | Janus International
Group, Inc., Cl A1,3,9 | | | 10,000,000 | | | | 13,760,000 | |
| | 48,800 | | | Trex Co., Inc.1 | | | 1,446,739 | | | | 4,987,848 | |
| | | | | | | | | | | | |
| | | | 56,319,746 | | | | 70,739,367 | |
| | | |
| | | | Research & Consulting Services (2.24%) | | | | | | | | |
| | 483,500 | | | CoStar Group, Inc.1 | | | 30,297,359 | | | | 40,043,470 | |
| | | |
| | | | Trading Companies & Distributors (0.89%) | | | | | | | | |
| | 93,477 | | | SiteOne Landscape Supply, Inc.1 | | | 10,670,710 | | | | 15,821,917 | |
| | | | | | | | | | | | |
| | Total Industrials | | | 97,287,815 | | | | 126,604,754 | |
| | | | | | | | | | | | |
| Information Technology (4.42%) | |
| | | | Internet Services & Infrastructure (4.42%) | | | | | | | | |
| | 816,100 | | | GDS Holdings Limited, ADR1,2 | | | 37,276,714 | | | | 64,055,689 | |
| | 1,660,900 | | | NEXTDC Limited (Australia)1,2,8 | | | 8,234,614 | | | | 14,779,828 | |
| | | | | | | | | | | | |
| | Total Information Technology | | | 45,511,328 | | | | 78,835,517 | |
| | | | | | | | | | | | |
| Materials (2.22%) | |
| | | | Construction Materials (2.22%) | |
| | 227,250 | | | Vulcan Materials Co. | | | 34,393,246 | | | | 39,557,407 | |
| | | | | | | | | | | | |
| Real Estate (38.47%) | |
| | | | Diversified Real Estate Activities (2.12%) | |
| | 180,322 | | | CoreSite Realty Corp. | | | 24,567,069 | | | | 24,271,341 | |
| | 1,728,470 | | | DigitalBridge Group, Inc. (formerly, Colony Capital, Inc.)1 | | | 8,730,133 | | | | 13,654,913 | |
| | | | | | | | | | | | |
| | | | 33,297,202 | | | | 37,926,254 | |
| |
| | | | Diversified REITs (0.99%) | |
| | 472,600 | | | American Assets Trust, Inc. | | | 13,655,912 | | | | 17,623,254 | |
| |
| | | | Hotel & Resort REITs (1.30%) | |
| | 631,600 | | | MGM Growth Properties LLC, Cl A | | | 16,115,442 | | | | 23,129,192 | |
| |
| | | | Industrial REITs (2.96%) | |
| | 274,000 | | | Prologis, Inc. | | | 19,543,707 | | | | 32,751,220 | |
| | 350,759 | | | Rexford Industrial Realty, Inc. | | | 14,778,586 | | | | 19,975,725 | |
| | | | | | | | | | | | |
| | | | 34,322,293 | | | | 52,726,945 | |
| |
| | | | Office REITs (5.64%) | |
| | 1,180,150 | | | Douglas Emmett, Inc. | | | 33,143,388 | | | | 39,676,643 | |
| | 523,445 | | | JBG SMITH Properties | | | 16,679,403 | | | | 16,493,752 | |
| | 950,850 | | | Vornado Realty Trust | | | 40,611,218 | | | | 44,376,170 | |
| | | | | | | | | | | | |
| | | | 90,434,009 | | | | 100,546,565 | |
| |
| | | | Real Estate Development (2.10%) | |
| | 384,900 | | | The Howard Hughes Corp.1 | | | 32,700,405 | | | | 37,512,354 | |
| |
| | | | Real Estate Services (6.10%) | |
| | 539,450 | | | CBRE Group, Inc., Cl A1 | | | 28,204,325 | | | | 46,247,048 | |
| | 258,500 | | | Jones Lang LaSalle, Inc.1 | | | 35,608,120 | | | | 50,526,410 | |
| | 677,872 | | | Opendoor Technologies, Inc.1 | | | 6,778,720 | | | | 12,018,671 | |
| | | | | | | | | | | | |
| | | | 70,591,165 | | | | 108,792,129 | |
| |
| | | | Residential REITs (4.39%) | |
| | 365,750 | | | Equity LifeStyle Properties, Inc. | | | 21,021,028 | | | | 27,178,883 | |
| | 206,500 | | | Equity Residential | | | 12,509,075 | | | | 15,900,500 | |
| | 945,400 | | | Invitation Homes, Inc. | | | 27,310,761 | | | | 35,253,966 | |
| | | | | | | | | | | | |
| | | | 60,840,864 | | | | 78,333,349 | |
| | |
| See Notes to Financial Statements. | | 27 |
| | |
| Baron Real Estate Fund | | June 30, 2021 |
STATEMENT OF NET ASSETS (Unaudited) (Continued)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Real Estate (continued) | |
| |
| | | | Retail REITs (2.61%) | |
| | 356,350 | | | Simon Property Group, Inc. | | $ | 34,875,928 | | | $ | 46,496,548 | |
| |
| | | | Specialized REITs (10.26%) | |
| | 147,200 | | | Alexandria Real Estate Equities, Inc.5 | | | 15,402,490 | | | | 26,781,568 | |
| | 198,800 | | | American Tower Corp.6 | | | 34,705,694 | | | | 53,703,832 | |
| | 542,290 | | | Americold Realty Trust5 | | | 15,561,503 | | | | 20,525,676 | |
| | 57,240 | | | Equinix, Inc. | | | 18,123,374 | | | | 45,940,824 | |
| | 385,348 | | | Gaming and Leisure
Properties, Inc. | | | 11,501,945 | | | | 17,853,173 | |
| | 56,850 | | | SBA Communications Corp. | | | 14,225,432 | | | | 18,118,095 | |
| | | | | | | | | | | | |
| | | | 109,520,438 | | | | 182,923,168 | |
| | | | | | | | | | | | |
| | Total Real Estate | | | 496,353,658 | | | | 686,009,758 | |
| | | | | | | | | | | | |
| Special Purpose Acquisition Company (4.03%) | |
| | 2,835,301 | | | Fifth Wall Acquisition
Corp. I, Cl A1,4 | | | 28,607,896 | | | | 34,902,555 | |
| | 1,250,000 | | | Fifth Wall Acquisition
Corp. III, Cl A1 | | | 12,500,000 | | | | 12,437,500 | |
| | 700,000 | | | GO Acquisition Corp., Cl A1 | | | 7,026,345 | | | | 6,846,000 | |
| | 1,290,554 | | | RXR Acquisition Corp.1 | | | 12,905,540 | | | | 12,853,918 | |
| | 475,000 | | | Tishman Speyer
Innovation Corp. II1 | | | 4,750,000 | | | | 4,773,750 | |
| | | | | | | | | | | | |
| | Total Special Purpose Acquisition Company | | | 65,789,781 | | | | 71,813,723 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 1,223,802,776 | | | | 1,741,665,779 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Principal Amount | | Cost | | | Value | |
| Short Term Investments (3.21%) | |
| | $57,298,915 | | | Repurchase Agreement with Fixed Income Clearing Corp., dated 6/30/2021, 0.00% due 7/1/2021; Proceeds at maturity - $57,298,915; (Fully collateralized by $51,548,300 U.S. Treasury Note, 3.125% due 11/15/2028 Market value - $58,444,908)8 | | $ | 57,298,915 | | | $ | 57,298,915 | |
| | | | | | | | | | | | |
| | Total Investments (100.89%) | | $ | 1,281,101,691 | | | | 1,798,964,694 | |
| | | | | | | | | | | | |
| | Liabilities Less Cash and Other Assets (-0.89%)7 | | | | (15,817,239 | ) |
| | | | | | | | | | | | |
| | Net Assets | | | | | | $ | 1,783,147,455 | |
| | | | | | | | | | | | |
| Retail Shares (Equivalent to $40.88 per share
based on 11,770,320 shares outstanding) |
| | $ | 481,147,844 | |
| | | | | | | | | | | | |
| Institutional Shares (Equivalent to $41.87 per share
based on 30,446,209 shares outstanding) |
| | $ | 1,274,676,697 | |
| | | | | | | | | | | | |
| R6 Shares (Equivalent to $41.87 per share
based on 652,591 shares outstanding) |
| | $ | 27,322,914 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | At June 30, 2021, the market value of restricted and fair valued securities amounted to $13,760,000 or 0.77% of net assets. This security is not deemed liquid. See Note 6 regarding Restricted Securities. |
| 4 | See Note 10 regarding “Affiliated” companies. |
| 5 | The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited). |
| 6 | All or a portion of these securities are segregated for an unfunded commitment. Total value of securities segregated is $16,748,680. |
| 7 | Includes unrealized depreciation of $197,400 on an unfunded commitment with a special purpose acquisition company to purchase a when-issued private investment in a public entity. |
| 8 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| 9 | Level 3 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
| 144A | Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. At June 30, 2021, the market value of Rule 144A securities amounted to $36,642,068 or 2.05% of net assets. |
All securities are Level 1, unless otherwise noted.
| | |
| 28 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Emerging Markets Fund |
STATEMENT OF NET ASSETS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (93.55%) | |
| Brazil (9.24%) | |
| | 21,608,704 | | | Aeris Indústria E Comércio De Equipamentos Para Geracão De Energia SA1 | | $ | 24,053,917 | | | $ | 43,097,500 | |
| | 1,728,747 | | | Afya Ltd., Cl A1 | | | 44,946,895 | | | | 44,567,098 | |
| | 2,159,229 | | | Banco Inter SA Units | | | 27,129,752 | | | | 33,770,241 | |
| | 15,652,753 | | | Itaú Unibanco Holding SA, ADR | | | 75,063,301 | | | | 94,073,045 | |
| | 6,524,545 | | | Localiza Rent a Car SA | | | 45,644,839 | | | | 83,954,095 | |
| | 20,679,430 | | | Lojas Americanas SA | | | 95,412,123 | | | | 89,722,566 | |
| | 5,945,700 | | | Notre Dame Intermedica Participacoes S.A. | | | 70,158,634 | | | | 101,525,654 | |
| | 215,453 | | | PagSeguro Digital Ltd., Cl A1 | | | 4,039,701 | | | | 12,048,132 | |
| | 1,514,120 | | | StoneCo Ltd., Cl A1 | | | 66,233,117 | | | | 101,536,887 | |
| | 8,940,874 | | | Suzano SA1 | | | 86,150,604 | | | | 107,514,109 | |
| | 2,078,803 | | | XP, Inc., Cl A1 | | | 75,947,225 | | | | 90,531,871 | |
| | | | | | | | | | | | |
| | Total Brazil | | | 614,780,108 | | | | 802,341,198 | |
| | | | | | | | | | | | |
| China (34.06%) | |
| | 1,303,924 | | | Alibaba Group Holding Limited, ADR1,3 | | | 164,336,347 | | | | 295,703,885 | |
| | 12,713,946 | | | Beijing Oriental Yuhong Waterproof Technology Co. Ltd., Cl A5 | | | 63,951,680 | | | | 108,820,660 | |
| | 24,522,160 | | | China Conch Venture Holdings Ltd.5 | | | 98,197,526 | | | | 103,178,396 | |
| | 16,411,732 | | | China Mengniu Dairy Co. Ltd.5 | | | 41,962,727 | | | | 99,147,426 | |
| | 53,522,892 | | | China Molybdenum Co. Ltd., Cl A5 | | | 41,912,055 | | | | 42,668,574 | |
| | 36,862,026 | | | China Molybdenum Co. Ltd., Cl H5 | | | 20,930,090 | | | | 21,843,083 | |
| | 1,952,929 | | | China Tourism Group Duty Free Corporation Ltd., Cl A5 | | | 24,923,793 | | | | 90,583,441 | |
| | 11,618,446 | | | Galaxy Entertainment Group Ltd.1,5 | | | 92,031,189 | | | | 92,902,072 | |
| | 917,744 | | | GDS Holdings Limited, ADR1 | | | 35,540,754 | | | | 72,033,727 | |
| | 2,527,535 | | | GDS Holdings Limited, Cl A (Hong Kong)1,5 | | | 27,143,383 | | | | 24,827,103 | |
| | 3,447,459 | | | Glodon Co. Ltd., Cl A5 | | | 15,634,662 | | | | 36,306,863 | |
| | 11,372,808 | | | Han’s Laser Technology Industry Group Co., Ltd., Cl A5 | | | 64,615,499 | | | | 71,032,206 | |
| | 3,253,862 | | | Hangzhou Tigermed Consulting Co. Ltd., CI A5 | | | 44,492,082 | | | | 97,137,453 | |
| | 11,980,293 | | | Hua Hong Semiconductor Limited, 144A1, 5 | | | 28,991,221 | | | | 66,139,505 | |
| | 51,276 | | | Kanzhun Ltd., ADR1 | | | 974,244 | | | | 2,033,093 | |
| | 25,585,166 | | | Kingdee International Software Group Co. Ltd.5 | | | 21,688,662 | | | | 86,653,431 | |
| | 16,726,374 | | | Kingsoft Corp. Ltd.5 | | | 74,528,357 | | | | 100,172,516 | |
| | 2,769,127 | | | Lufax Holding Ltd., ADR1 | | | 37,071,657 | | | | 31,291,135 | |
| | 2,197,290 | | | Meituan Inc., Cl B, 144A1,5 | | | 35,013,142 | | | | 90,640,726 | |
| | 7,654,096 | | | Midea Group Co., Ltd., Cl A5 | | | 53,291,715 | | | | 84,429,078 | |
| | 2,330,550 | | | New Frontier Health Corp.1 | | | 24,085,361 | | | | 26,032,243 | |
| | 4,213,176 | | | Ping An Insurance (Group) Company of China, Ltd., CI H5 | | | 44,939,819 | | | | 41,185,469 | |
| | 4,110,044 | | | SF Holding Co. Ltd., Cl A5 | | | 30,526,350 | | | | 42,995,304 | |
| | 4,035,967 | | | Shanghai Henlius
Biotech, Inc., Cl H, 144A1, 5 | | | 25,409,986 | | | | 19,787,878 | |
| | 1,340,319 | | | Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Cl A5 | | | 42,578,089 | | | | 99,389,091 | |
| | 4,302,486 | | | Shenzhou International Group Holdings Ltd.5 | | | 24,262,812 | | | | 108,649,750 | |
| | 74,225,047 | | | Sino Biopharmaceutical Ltd.5 | | | 57,221,906 | | | | 72,720,633 | |
| | 4,852,982 | | | Tencent Holdings Limited5 | | | 207,960,451 | | | | 365,393,014 | |
| | 194,437 | | | Tencent Holdings Limited, ADR | | | 10,779,783 | | | | 14,641,106 | |
| | 12,953,319 | | | Venustech Group, Inc., Cl A5 | | | 65,921,862 | | | | 58,125,748 | |
| | 1,805,694 | | | Will Semiconductor Co. Ltd. Shanghai, Cl A5 | | | 67,688,729 | | | | 89,776,218 | |
| | 17,371,967 | | | Winning Health Technology Group Co. Ltd., Cl A5 | | | 49,286,633 | | | | 43,695,291 | |
| | 840,265 | | | Yum China Holdings, Inc. | | | 46,544,324 | | | | 55,667,556 | |
| | 539,983 | | | Yum China Holdings, Inc. (Hong Kong)5 | | | 29,819,495 | | | | 35,205,391 | |
| | 3,980,827 | | | Yunnan Baiyao
Group Co. Ltd., Cl A5 | | | 59,266,465 | | | | 71,238,187 | |
| | 1,099,203 | | | Zai Lab Limited, ADR1 | | | 23,498,988 | | | | 194,547,939 | |
| | | | | | | | | | | | |
| | Total China | | | 1,797,021,838 | | | | 2,956,595,191 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Hong Kong (2.10%) | |
| | 22,831,323 | | | Budweiser Brewing Co.
APAC Ltd., 144A5 | | $ | 73,751,880 | | | $ | 71,890,200 | |
| | 6,343,950 | | | Techtronic Industries Co. Ltd.5 | | | 27,600,967 | | | | 110,555,798 | |
| | | | | | | | | | | | |
| | Total Hong Kong | | | 101,352,847 | | | | 182,445,998 | |
| | | | | | | | | | | | |
| Hungary (1.04%) | |
| | 1,676,242 | | | OTP Bank Nyrt1,5 | | | 69,227,317 | | | | 90,234,990 | |
| | | | | | | | | | | | |
| India (21.38%) | |
| | 3,651,299 | | | AARTI Industries Ltd. | | | 42,000,009 | | | | 42,822,816 | |
| | 1,972,136 | | | Asian Paints Ltd. 5 | | | 51,065,999 | | | | 79,506,676 | |
| | 2,442,902 | | | Bajaj Finance Limited5 | | | 111,059,011 | | | | 198,140,753 | |
| | 7,247,716 | | | Bharti Airtel Ltd.5 | | | 52,989,447 | | | | 51,326,406 | |
| | 1,700,442 | | | Divi’s Laboratories Ltd.1,5 | | | 21,682,417 | | | | 100,914,278 | |
| | 976,956 | | | Dr. Reddy’s Laboratories Ltd.5 | | | 43,044,964 | | | | 71,433,217 | |
| | 327,566 | | | Dr. Reddy’s Laboratories Ltd., ADR | | | 14,297,565 | | | | 24,079,377 | |
| | 28,707,607 | | | Edelweiss Financial Services Ltd.5 | | | 43,093,752 | | | | 27,990,453 | |
| | 2,239,103 | | | Godrej Properties Ltd.1,5 | | | 43,545,600 | | | | 42,161,426 | |
| | 4,232,484 | | | HDFC Bank Ltd.5 | | | 66,916,707 | | | | 85,487,079 | |
| | 3,925,013 | | | Hemisphere Properties India Limited1,5 | | | 14,835,694 | | | | 7,304,055 | |
| | 1,671,749 | | | Hindustan Unilever Ltd.5 | | | 47,804,427 | | | | 55,646,305 | |
| | 3,034,746 | | | Housing Development Finance Corp., Ltd.5 | | | 83,718,005 | | | | 101,279,034 | |
| | 2,806,297 | | | ICICI Lombard General Insurance Co. Ltd., 144A5 | | | 51,397,299 | | | | 59,215,244 | |
| | 38,260,642 | | | JM Financial Limited5 | | | 56,062,324 | | | | 45,660,334 | |
| | 1,120,128 | | | Jubilant FoodWorks Ltd.1, 5 | | | 46,533,795 | | | | 46,473,646 | |
| | 2,427,790 | | | Kotak Mahindra Bank Ltd.1,5 | | | 29,356,062 | | | | 55,805,269 | |
| | 10,047,947 | | | Max Financial Services Ltd.1,5 | | | 89,132,386 | | | | 143,456,359 | |
| | 3,620,278 | | | Muthoot Finance Ltd.5 | | | 55,962,558 | | | | 72,236,632 | |
| | 12,240,204 | | | Nippon Life India Asset Management Ltd., 144A5 | | | 44,661,124 | | | | 60,350,585 | |
| | 6,123,910 | | | Reliance Industries Limited5 | | | 125,475,817 | | | | 174,141,703 | |
| | 378,065 | | | Reliance Industries Limited PP5 | | | 3,433,391 | | | | 7,581,254 | |
| | 5,365,072 | | | SBI Life Insurance Company Limited, 144A5 | | | 58,005,463 | | | | 72,864,279 | |
| | 5,167,699 | | | Tata Communications Ltd. | | | 40,713,353 | | | | 89,483,995 | |
| | 7,363,351 | | | Tata Consumer Products Ltd.5 | | | 28,711,053 | | | | 74,802,686 | |
| | 2,817,562 | | | Titan Co. Ltd.5 | | | 46,652,075 | | | | 65,760,422 | |
| | | | | | | | | | | | |
| | Total India | | | 1,312,150,297 | | | | 1,855,924,283 | |
| | | | | | | | | | | | |
| Japan (0.74%) | |
| | 126,861 | | | Keyence Corporation5 | | | 46,564,676 | | | | 63,890,132 | |
| | | | | | | | | | | | |
| Korea, Republic of (5.35%) | |
| | 1,547,005 | | | Korea Shipbuilding & Offshore Engineering Co. Ltd.1,5 | | | 159,504,691 | | | | 184,000,188 | |
| | 3,913,024 | | | Samsung Electronics Co., Ltd.5 | | | 130,238,272 | | | | 280,118,236 | |
| | | | | | | | | | | | |
| | Total Korea, Republic of | | | 289,742,963 | | | | 464,118,424 | |
| | | | | | | | | | | | |
| Mexico (2.09%) | |
| | 26,518 | | | DD3 Acquisition Corp. II Private Units1,2,6 | | | 265,180 | | | | 265,445 | |
| | 18,071,165 | | | Grupo México S.A.B. de C.V., Series B | | | 47,356,118 | | | | 85,179,425 | |
| | 29,443,497 | | | Wal-Mart de Mexico, S.A.B de C.V.1 | | | 75,969,718 | | | | 96,170,668 | |
| | | | | | | | | | | | |
| | Total Mexico | | | 123,591,016 | | | | 181,615,538 | |
| | | | | | | | | | | | |
| Norway (0.57%) | |
| | 3,762,328 | | | Golar LNG Ltd.1 | | | 39,116,123 | | | | 49,850,846 | |
| | | | | | | | | | | | |
| | |
| See Notes to Financial Statements. | | 29 |
| | |
| Baron Emerging Markets Fund | | June 30, 2021 |
STATEMENT OF NET ASSETS (Unaudited) (Continued)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Peru (0.40%) | | | | | | |
| | 283,943 | | | Credicorp, Ltd.1 | | $ | 37,233,871 | | | $ | 34,388,337 | |
| | | | | | | | | | | | |
| Philippines (1.23%) | |
| | 70,414,865 | | | Ayala Land, Inc. | | | 53,079,728 | | | | 52,001,554 | |
| | 23,562,436 | | | BDO Unibank, Inc. | | | 50,443,376 | | | | 54,640,331 | |
| | | | | | | | | | | | |
| | Total Philippines | | | 103,523,104 | | | | 106,641,885 | |
| | | | | | | | | | | | |
| Poland (1.06%) | |
| | 4,601,226 | | | InPost SA1 | | | 96,120,184 | | | | 92,346,637 | |
| | | | | | | | | | | | |
| Russia (7.05%) | |
| | 1,001,680 | | | Fix Price Group Ltd., GDR1 | | | 9,569,653 | | | | 8,764,700 | |
| | 4,746,202 | | | Fix Price Group Ltd., GDR, 144A1 | | | 46,272,864 | | | | 41,529,267 | |
| | 706,771 | | | Novatek PJSC, GDR | | | 110,198,710 | | | | 154,994,880 | |
| | 42,392 | | | Novatek PJSC, GDR (London)5 | | | 8,119,531 | | | | 9,302,246 | |
| | 1,155,805 | | | Ozon Holdings PLC, ADR1 | | | 50,829,388 | | | | 67,753,289 | |
| | 130,365 | | | Polyus PJSC5 | | | 25,890,213 | | | | 25,195,253 | |
| | 179,766 | | | Polyus PJSC, GDR | | | 17,983,107 | | | | 17,392,361 | |
| | 9,710 | | | Polyus PJSC, GDR (London)5 | | | 1,009,071 | | | | 940,444 | |
| | 8,876,645 | | | Sberbank of Russia PJSC, ADR5 | | | 99,224,713 | | | | 147,503,103 | |
| | 368,033 | | | Sberbank of Russia PJSC, ADR | | | 5,751,698 | | | | 6,142,471 | |
| | 691,796 | | | TCS Group Holding PLC, GDR | | | 41,273,832 | | | | 60,532,150 | |
| | 192,168 | | | TCS Group Holding PLC, GDR (London)5 | | | 12,902,788 | | | | 16,823,040 | |
| | 783,753 | | | Yandex N.V., Cl A1 | | | 15,244,639 | | | | 55,450,525 | |
| | | | | | | | | | | | |
| | Total Russia | | | 444,270,207 | | | | 612,323,729 | |
| | | | | | | | | | | | |
| Taiwan (4.92%) | |
| | 11,113,879 | | | Delta Electronics, Inc.5 | | | 48,287,386 | | | | 120,739,615 | |
| | 2,550,695 | | | Taiwan Semiconductor Manufacturing Co., Ltd., ADR | | | 89,316,490 | | | | 306,491,511 | |
| | | | | | | | | | | | |
| | Total Taiwan | | | 137,603,876 | | | | 427,231,126 | |
| | | | | | | | | | | | |
| United Arab Emirates (0.29%) | |
| | 4,965,504 | | | Network International Holdings plc, 144A1,5 | | | 30,249,729 | | | | 25,157,943 | |
| | | | | | | | | | | | |
| United Kingdom (1.71%) | |
| | 34,503,433 | | | Glencore PLC5 | | | 119,644,254 | | | | 148,091,816 | |
| | | | | | | | | | | | |
| United States (0.32%) | |
| | 275,025 | | | ACM Research, Inc., Cl A1 | | | 24,539,534 | | | | 28,113,056 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 5,386,731,944 | | | | 8,121,311,129 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Private Common Stocks (0.45%) | |
| India (0.45%) | |
| | 27,027 | | | Pine Labs PTE. Ltd., Series 11,2,6 | | | 10,077,362 | | | | 9,871,612 | |
| | 6,833 | | | Pine Labs PTE. Ltd., Series A1,2,6 | | | 2,547,771 | | | | 2,495,753 | |
| | 7,600 | | | Pine Labs PTE. Ltd., Series B1,2,6 | | | 2,833,757 | | | | 2,775,900 | |
| | 6,174 | | | Pine Labs PTE. Ltd., Series B21,2,6 | | | 2,302,055 | | | | 2,255,053 | |
| | 9,573 | | | Pine Labs PTE. Ltd., Series C1,2,6 | | | 3,569,416 | | | | 3,496,538 | |
| | 1,932 | | | Pine Labs PTE. Ltd., Series C11,2,6 | | | 720,371 | | | | 705,663 | |
| | 2,459 | | | Pine Labs PTE. Ltd., Series D1,2,6 | | | 916,870 | | | | 898,150 | |
| | 45,680 | | | Pine Labs PTE. Ltd., Series J1,2,6 | | | 17,032,398 | | | | 16,684,620 | |
| | | | | | | | | | | | |
| | Total Private Common Stocks | | | 40,000,000 | | | | 39,183,289 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Private Convertible Preferred Stocks (0.55%) | |
| India (0.55%) | |
| | 15,334 | | | Think & Learn Private
Limited, Series F1,2,6 | | $ | 49,776,072 | | | $ | 47,710,808 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
| Principal Amount | | | | | | |
| Short Term Investments (5.74%) | |
| | $498,116,757 | | | Repurchase Agreement with Fixed Income Clearing Corp., dated 6/30/2021, 0.00% due 7/1/2021; Proceeds at maturity - $498,116,757; (Fully collateralized by $89,886,600 U.S. Treasury Note, 1.25% due 6/30/2028 Market value - $89,942,779 and $368,795,500 U.S. Treasury Note, 3.125% due 11/15/2028 Market value - $418,136,373)5 | | | 498,116,757 | | | | 498,116,757 | |
| | | | | | | | | | | | |
| | Total Investments (100.29%) | | $ | 5,974,624,773 | | | | 8,706,321,983 | |
| | | | | | | | | | | | |
| | Liabilities Less Cash and Other Assets (-0.29%)4 | | | | (24,787,983 | ) |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 8,681,534,000 | |
| | | | | | | | | | | | |
| Retail Shares (Equivalent to $19.84 per share
based on 26,777,111 shares outstanding) |
| | $ | 531,333,296 | |
| | | | | | | | | | | | |
| Institutional Shares (Equivalent to $19.95 per share
based on 407,628,152 shares outstanding) |
| | $ | 8,134,075,850 | |
| | | | | | | | | | | | |
| R6 Shares (Equivalent to $19.97 per share
based on 807,619 shares outstanding) |
| | $ | 16,124,854 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 2 | At June 30, 2021, the market value of restricted and fair valued securities amounted to $87,159,542 or 1.00% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities. |
| 3 | All or a portion of these securities are segregated for an unfunded commitment. Total value of securities segregated is $19,729,860. |
| 4 | Includes unrealized appreciation of $2,073,174 on an unfunded commitment with a special purpose acquisition company to purchase a when-issued private investment in a public entity. |
| 5 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| 6 | Level 3 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
| GDR | Global Depositary Receipt. |
| 144A | Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. At June 30, 2021, the market value of Rule 144A securities amounted to $507,575,627 or 5.85% of net assets. |
All securities are Level 1, unless otherwise noted.
| | |
| 30 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Emerging Markets Fund |
STATEMENT OF NET ASSETS (Unaudited) (Continued)
| | | | |
Summary of Investments by Sector
as of June 30, 2021 | | Percentage of
Net Assets | |
| |
Financials | | | 18.7 | % |
| |
Information Technology | | | 17.4 | |
| |
Consumer Discretionary | | | 14.6 | |
| |
Health Care | | | 10.6 | |
| |
Industrials | | | 8.4 | |
| |
Materials | | | 7.8 | |
| |
Communication Services | | | 6.7 | |
| |
Consumer Staples | | | 4.6 | |
| |
Energy | | | 4.5 | |
| |
Real Estate | | | 1.2 | |
| |
Special Purpose Acquisition Company | | | 0.0 | † |
| |
Cash and Cash Equivalents* | | | 5.5 | |
| | | | 100.0 | % |
| † | Represents less than 0.05% of net assets. |
| * | Includes short term investments. |
| | |
| See Notes to Financial Statements. | | 31 |
| | |
| Baron Global Advantage Fund | | June 30, 2021 |
STATEMENT OF NET ASSETS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (93.62%) | |
| Argentina (3.06%) | |
| | 76,873 | | | Globant S.A.1 | | $ | 5,591,434 | | | $ | 16,849,024 | |
| | 46,026 | | | MercadoLibre, Inc.1 | | | 31,748,310 | | | | 71,698,843 | |
| | | | | | | | | | | | |
| | Total Argentina | | | 37,339,744 | | | | 88,547,867 | |
| | | | | | | | | | | | |
| Brazil (3.15%) | |
| | 1,350,809 | | | Afya Ltd., Cl A1 | | | 30,749,276 | | | | 34,823,856 | |
| | 671,264 | | | Arco Platform Limited, Cl A1 | | | 27,148,976 | | | | 20,580,954 | |
| | 535,148 | | | StoneCo Ltd., Cl A1 | | | 18,692,727 | | | | 35,887,025 | |
| | | | | | | | | | | | |
| | Total Brazil | | | 76,590,979 | | | | 91,291,835 | |
| | | | | | | | | | | | |
| Canada (3.91%) | |
| | 587,696 | | | Nuvei Corp., 144A1 | | | 21,077,497 | | | | 48,484,920 | |
| | 44,242 | | | Shopify, Inc., Cl A1 | | | 33,882,773 | | | | 64,636,677 | |
| | | | | | | | | | | | |
| | Total Canada | | | 54,960,270 | | | | 113,121,597 | |
| | | | | | | | | | | | |
| China (11.26%) | |
| | 492,439 | | | Alibaba Group Holding Limited, ADR1,4 | | | 101,881,803 | | | | 111,675,316 | |
| | 673,206 | | | GDS Holdings Limited, ADR1 | | | 44,161,310 | | | | 52,839,939 | |
| | 1,381,225 | | | Meituan Inc., Cl B, 144A1, 6 | | | 26,631,860 | | | | 56,977,111 | |
| | 189,309 | | | Pinduoduo, Inc., ADR1 | | | 9,401,278 | | | | 24,046,029 | |
| | 663,624 | | | TAL Education Group, ADR1 | | | 33,010,270 | | | | 16,743,234 | |
| | 360,337 | | | Zai Lab Limited, ADR1 | | | 24,796,803 | | | | 63,776,046 | |
| | | | | | | | | | | | |
| | Total China | | | 239,883,324 | | | | 326,057,675 | |
| | | | | | | | | | | | |
| India (1.50%) | |
| | 534,508 | | | Bajaj Finance Limited6 | | | 33,760,009 | | | | 43,353,281 | |
| | | | | | | | | | | | |
| Indonesia (0.30%) | |
| | 31,632 | | | Sea Ltd., ADR1 | | | 7,379,405 | | | | 8,686,147 | |
| | | | | | | | | | | | |
| Israel (6.51%) | |
| | 326,882 | | | Fiverr International Ltd.1 | | | 7,503,852 | | | | 79,265,616 | |
| | 551,889 | | | ION Acquisition Corp. 2 Limited1 | | | 5,518,890 | | | | 5,568,560 | |
| | 36,656 | | | monday.com Ltd.1 | | | 5,681,680 | | | | 8,195,915 | |
| | 1,326,490 | | | Taboola.com Ltd. (formerly, ION Acquisition Corp. 1 Limited)1,2,7 | | | 13,264,900 | | | | 13,238,370 | |
| | 1,143,741 | | | Taboola.com Ltd.1 | | | 11,020,310 | | | | 11,837,720 | |
| | 242,889 | | | Wix.com Ltd.1 | | | 43,240,533 | | | | 70,505,819 | |
| | | | | | | | | | | | |
| | Total Israel | | | 86,230,165 | | | | 188,612,000 | |
| | | | | | | | | | | | |
| Korea, Republic of (0.94%) | |
| | 654,000 | | | Coupang, Inc., Cl A1 | | | 22,890,000 | | | | 27,350,280 | |
| | | | | | | | | | | | |
| Mexico (0.33%) | |
| | 996,069 | | | DD3 Acquisition Corp. II1,2,3,7 | | | 9,115,057 | | | | 9,462,655 | |
| | 8,652 | | | DD3 Acquisition Corp. II Private Units1,2,3,7 | | | 86,516 | | | | 86,607 | |
| | | | | | | | | | | | |
| | Total Mexico | | | 9,201,573 | | | | 9,549,262 | |
| | | | | | | | | | | | |
| Netherlands (4.76%) | |
| | 16,186 | | | Adyen N.V., 144A1,6 | | | 16,437,273 | | | | 39,693,404 | |
| | 238,698 | | | argenx SE, ADR1 | | | 45,917,552 | | | | 71,864,807 | |
| | 38,227 | | | ASML Holding N.V.6 | | | 8,394,703 | | | | 26,388,835 | |
| | | | | | | | | | | | |
| | Total Netherlands | | | 70,749,528 | | | | 137,947,046 | |
| | | | | | | | | | | | |
| Poland (0.50%) | |
| | 62,873 | | | Allegro.eu SA, 144A1 | | | 805,513 | | | | 1,082,016 | |
| | 668,821 | | | InPost SA1 | | | 13,261,506 | | | | 13,423,242 | |
| | | | | | | | | | | | |
| | Total Poland | | | 14,067,019 | | | | 14,505,258 | |
| | | | | | | | | | | | |
| United Kingdom (2.85%) | |
| | 726,800 | | | Endava plc, ADR1 | | | 31,977,783 | | | | 82,404,584 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| United States (53.08%) | |
| | 296,371 | | | 10X Genomics, Inc., Cl A1 | | $ | 26,654,003 | | | $ | 58,035,369 | |
| | 639,858 | | | Acceleron Pharma, Inc.1 | | | 53,505,388 | | | | 80,295,780 | |
| | 3,651 | | | Airbnb, Inc., Cl A1 | | | 248,268 | | | | 559,114 | |
| | 62,964 | | | Alphabet, Inc., Cl C1 | | | 98,418,779 | | | | 157,807,933 | |
| | 38,418 | | | Amazon.com, Inc.1 | | | 91,152,664 | | | | 132,164,067 | |
| | 402,314 | | | Arrowhead
Pharmaceuticals, Inc.1 | | | 27,471,371 | | | | 33,319,646 | |
| | 137,887 | | | Bill.Com Holdings, Inc.1 | | | 5,238,091 | | | | 25,258,141 | |
| | 461,820 | | | BridgeBio Pharma, Inc.1 | | | 28,867,909 | | | | 28,152,547 | |
| | 371,841 | | | Cloudflare, Inc., Cl A1 | | | 9,123,087 | | | | 39,355,651 | |
| | 236,309 | | | Crowdstrike Holdings, Inc., Cl A1 | | | 20,825,845 | | | | 59,386,815 | |
| | 214,501 | | | Datadog, Inc., Cl A1 | | | 10,250,761 | | | | 22,325,264 | |
| | 933,945 | | | Dynatrace, Inc.1 | | | 33,781,139 | | | | 54,561,067 | |
| | 171,386 | | | EPAM Systems, Inc.1 | | | 40,897,771 | | | | 87,571,391 | |
| | 321,312 | | | Facebook, Inc., Cl A1 | | | 70,543,701 | | | | 111,723,396 | |
| | 327,879 | | | Guardant Health, Inc.1 | | | 25,308,759 | | | | 40,719,293 | |
| | 138,687 | | | Illumina, Inc.1 | | | 44,958,886 | | | | 65,628,075 | |
| | 923,813 | | | MaxCyte, Inc.1 | | | 10,715,379 | | | | 11,475,636 | |
| | 8,586 | | | nCino, Inc.1 | | | 266,166 | | | | 514,473 | |
| | 58,333 | | | Okta, Inc.1 | | | 6,160,802 | | | | 14,272,918 | |
| | 1,953,501 | | | Opendoor Technologies, Inc.1 | | | 19,535,010 | | | | 34,635,573 | |
| | 258,892 | | | RingCentral, Inc., Cl A1 | | | 70,464,733 | | | | 75,228,837 | |
| | 1,493,774 | | | Sarissa Capital
Acquisition Corp.1,3 | | | 14,937,740 | | | | 15,565,125 | |
| | 422,406 | | | Schrödinger, Inc.1 | | | 15,544,854 | | | | 31,938,118 | |
| | 166,087 | | | Snowflake, Inc., Cl A1 | | | 21,425,516 | | | | 40,159,837 | |
| | 3,960,396 | | | SoFi Technologies, Inc. | | | 39,603,960 | | | | 75,920,791 | |
| | 190,027 | | | Twilio, Inc., Cl A1 | | | 32,336,272 | | | | 74,901,042 | |
| | 189,872 | | | Veeva Systems, Inc., Cl A1 | | | 34,015,516 | | | | 59,040,698 | |
| | 1,000,838 | | | ZoomInfo
Technologies Inc., Cl A1 | | | 32,829,689 | | | | 52,213,719 | |
| | 123,983 | | | Zscaler, Inc.1 | | | 8,588,945 | | | | 26,787,767 | |
| | 686,999 | | | Zymergen, Inc.1 | | | 21,296,969 | | | | 27,486,830 | |
| | | | | | | | | | | | |
| | Total United States | | | 914,967,973 | | | | 1,537,004,913 | |
| | | | | | | | | | | | |
| Uruguay (1.47%) | |
| | 807,566 | | | Dlocal Ltd., Cl A1 | | | 17,807,000 | | | | 42,421,442 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 1,617,804,772 | | | | 2,710,853,187 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Private Common Stocks (0.32%) | |
| United States (0.32%) | |
| | 18,197 | | | Space Exploration
Technologies Corp., Cl A1,2,7 | | | 7,642,558 | | | | 7,247,319 | |
| | 5,613 | | | Space Exploration
Technologies Corp., Cl C1,2,7 | | | 2,357,404 | | | | 2,235,490 | |
| | | | | | | | | | | | |
| | Total Private Common Stocks | | | 9,999,962 | | | | 9,482,809 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Private Convertible Preferred Stocks (2.43%) | |
| India (0.99%) | |
| | 9,201 | | | Think & Learn Private Limited, Series F1,2,7 | | | 29,867,591 | | | | 28,628,352 | |
| | | | | | | | | | | | |
| United States (1.44%) | |
| | 219,321 | | | Farmers Business
Network, Inc., Series F1,2,7 | | | 7,250,006 | | | | 9,371,586 | |
| | 69,926 | | | Resident Home, Inc.
Series B11,2,7 | | | 4,999,968 | | | | 4,593,439 | |
| | 484,183 | | | Rivian Automotive, Inc., Series E 1,2,7 | | | 7,499,995 | | | | 17,498,374 | |
| | 176,391 | | | Rivian Automotive, Inc., Series F1,2,7 | | | 6,500,008 | | | | 6,448,855 | |
| | 100,775 | | | Zymergen, Inc., Series D1,2,7 | | | 2,249,993 | | | | 3,775,031 | |
| | | | | | | | | | | | |
| | Total United States | | | 28,499,970 | | | | 41,687,285 | |
| | | | | | | | | | | | |
| | Total Private Convertible Preferred Stocks | | | 58,367,561 | | | | 70,315,637 | |
| | | | | | | | | | | | |
| | |
| 32 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Global Advantage Fund |
STATEMENT OF NET ASSETS (Unaudited) (Continued)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Private Preferred Stocks (0.42%) | |
| United States (0.42%) | |
| | 461,004 | | | GM Cruise Holdings, Cl G1,2,7 | | $ | 12,147,455 | | | $ | 12,267,316 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Warrants (0.05%) | |
| Israel (0.02%) | |
| | 228,748 | | | Taboola.com Ltd.
Exp 10/5/20271 | | | 417,099 | | | | 709,119 | |
| | | | | | | | | | | | |
| Mexico (0.03%) | |
| | 498,034 | | | DD3 Acquisition Corp. II,
Exp 12/10/20271,2,3,7 | | | 845,632 | | | | 727,129 | |
| | | | | | | | | | | | |
| | Total Warrants | | | 1,262,731 | | | | 1,436,248 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
| Principal Amount | | | | | | |
| Short Term Investments (2.87%) | |
| | $82,971,185 | | | Repurchase Agreement with Fixed Income Clearing Corp., dated 6/30/2021, 0.00% due 7/1/2021; Proceeds at maturity - $82,971,185; (Fully collateralized by $84,577,800 U.S. Treasury Note, 1.25% due 6/30/2028 Market value - $84,630,661)6 | | | 82,971,185 | | | | 82,971,185 | |
| | | | | | | | | | | | |
| | Total Investments (99.71%) | | $ | 1,782,553,666 | | | | 2,887,326,382 | |
| | | | | | | | | | | | |
| | Cash and Other Assets Less Liabilities (0.29%)5 | | | | 8,278,585 | |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 2,895,604,967 | |
| | | | | | | | | | | | |
| Retail Shares (Equivalent to $56.33 per share
based on 17,239,459 shares outstanding) |
| | $ | 971,173,756 | |
| | | | | | | | | | | | |
| Institutional Shares (Equivalent to $57.41 per share
based on 33,189,649 shares outstanding) |
| | $ | 1,905,366,073 | |
| | | | | | | | | | | | |
| R6 Shares (Equivalent to $57.44 per share
based on 331,908 shares outstanding) |
| | $ | 19,065,138 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 2 | At June 30, 2021, the market value of restricted and fair valued securities amounted to $115,580,523 or 3.99% of net assets. These securities are not deemed liquid. See Note 6 regarding Restricted Securities. |
| 3 | See Note 10 regarding “Affiliated” companies. |
| 4 | All or a portion of these securities are segregated for unfunded commitments. Total value of securities segregated is $31,975,980. |
| 5 | Includes net unrealized appreciation of $430,146 on unfunded commitments with special purpose acquisition companies to purchase when-issued private investments in public entities. |
| 6 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| 7 | Level 3 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
| 144A | Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. At June 30, 2021, the market value of Rule 144A securities amounted to $146,237,451 or 5.05% of net assets. |
All securities are Level 1, unless otherwise noted.
| | | | |
Summary of Investments by Sector
as of June 30, 2021 | | Percentage of
Net Assets | |
| |
Information Technology | | | 34.8 | % |
| |
Consumer Discretionary | | | 21.9 | |
| |
Health Care | | | 18.8 | |
| |
Communication Services | | | 12.3 | |
| |
Financials | | | 4.1 | |
| |
Materials | | | 1.4 | |
| |
Industrials | | | 1.2 | |
| |
Real Estate | | | 1.2 | |
| |
Special Purpose Acquisition Company | | | 1.1 | |
| |
Cash and Cash Equivalents* | | | 3.2 | |
| | | | 100.0 | % |
| * | Includes short term investments. |
| | |
| See Notes to Financial Statements. | | 33 |
| | |
| Baron Real Estate Income Fund | | June 30, 2021 |
STATEMENT OF NET ASSETS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (97.17%) | |
| Consumer Discretionary (10.16%) | |
| | | | Casinos & Gaming (7.89%) | |
| | 19,575 | | | Las Vegas Sands Corp.1 | | $ | 1,035,923 | | | $ | 1,031,407 | |
| | 47,672 | | | Melco Resorts &
Entertainment Ltd., ADR1,2 | | | 810,495 | | | | 789,925 | |
| | 15,731 | | | Penn National Gaming, Inc.1 | | | 959,526 | | | | 1,203,264 | |
| | 50,382 | | | Red Rock Resorts, Inc., Cl A1 | | | 1,098,359 | | | | 2,141,235 | |
| | 5,230 | | | Wynn Resorts Ltd.1 | | | 508,667 | | | | 639,629 | |
| | | | | | | | | | | | |
| | | | 4,412,970 | | | | 5,805,460 | |
| | | |
| | | | Hotels, Resorts & Cruise Lines (2.27%) | | | | | | | | |
| | 28,128 | | | Travel + Leisure Co. | | | 1,547,655 | | | | 1,672,209 | |
| | | | | | | | | | | | |
| | Total Consumer Discretionary | | | 5,960,625 | | | | 7,477,669 | |
| | | | | | | | | | | | |
| Information Technology (2.52%) | |
| | | | Internet Services &
Infrastructure (2.52%) | | | | | | | | |
| | 23,673 | | | GDS Holdings Limited, ADR1,2 | | | 1,781,269 | | | | 1,858,094 | |
| | | | | | | | | | | | |
| Real Estate (79.33%) | |
| | | | Diversified REITs (4.38%) | |
| | 29,590 | | | American Assets Trust, Inc. | | | 877,020 | | | | 1,103,411 | |
| | 234,779 | | | DigitalBridge Group, Inc. (formerly, Colony Capital, Inc.)1 | | | 1,160,186 | | | | 1,854,754 | |
| | 7,750 | | | STORE Capital Corp. | | | 210,231 | | | | 267,453 | |
| | | | | | | | | | | | |
| | | | 2,247,437 | | | | 3,225,618 | |
| | | | Health Care REITs (1.46%) | |
| | 12,901 | | | Welltower, Inc. | | | 903,427 | | | | 1,072,073 | |
| |
| | | | Hotel & Resort REITs (10.94%) | |
| | 121,574 | | | Host Hotels & Resorts, Inc.1 | | | 2,019,675 | | | | 2,077,700 | |
| | 51,552 | | | MGM Growth Properties LLC, Cl A | | | 1,685,560 | | | | 1,887,834 | |
| | 89,256 | | | Park Hotels & Resorts, Inc.1 | | | 1,851,719 | | | | 1,839,566 | |
| | 95,355 | | | Pebblebrook Hotel Trust | | | 1,903,508 | | | | 2,245,610 | |
| | | | | | | | | | | | |
| | | | 7,460,462 | | | | 8,050,710 | |
| |
| | | | Industrial REITs (6.94%) | |
| | 17,687 | | | Duke Realty Corp. | | | 687,219 | | | | 837,480 | |
| | 21,678 | | | Prologis, Inc. | | | 2,103,191 | | | | 2,591,171 | |
| | 24,298 | | | Rexford Industrial Realty, Inc. | | | 1,163,762 | | | | 1,383,771 | |
| | 4,543 | | | Terreno Realty Corp. | | | 255,832 | | | | 293,114 | |
| | | | | | | | | | | | |
| | | | 4,210,004 | | | | 5,105,536 | |
| |
| | | | Office REITs (10.49%) | |
| | 3,320 | | | Boston Properties, Inc. | | | 312,344 | | | | 380,439 | |
| | 59,095 | | | Douglas Emmett, Inc. | | | 1,820,695 | | | | 1,986,774 | |
| | 52,844 | | | JBG SMITH Properties | | | 1,698,383 | | | | 1,665,114 | |
| | 107,750 | | | Paramount Group, Inc. | | | 1,099,408 | | | | 1,085,043 | |
| | 55,688 | | | Vornado Realty Trust | | | 2,431,635 | | | | 2,598,959 | |
| | | | | | | | | | | | |
| | | | 7,362,465 | | | | 7,716,329 | |
| | | |
| | | | Real Estate Operating
Companies (1.62%) | | | | | | | | |
| | 59,809 | | | Kennedy-Wilson Holdings, Inc. | | | 1,084,529 | | | | 1,188,405 | |
| |
| | | | Residential REITs (14.86%) | |
| | 55,475 | | | American Homes 4 Rent, Cl A | | | 1,833,381 | | | | 2,155,204 | |
| | 23,220 | | | Equity LifeStyle Properties, Inc. | | | 1,433,447 | | | | 1,725,478 | |
| | 14,602 | | | Equity Residential | | | 867,370 | | | | 1,124,354 | |
| | 112,885 | | | Invitation Homes, Inc. | | | 3,768,610 | | | | 4,209,481 | |
| | 10,015 | | | Sun Communities, Inc. | | | 1,481,143 | | | | 1,716,571 | |
| | | | | | | | | | | | |
| | | | 9,383,951 | | | | 10,931,088 | |
| |
| | | | Retail REITs (3.72%) | |
| | 20,960 | | | Simon Property Group, Inc. | | | 2,182,966 | | | | 2,734,861 | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Real Estate (continued) | |
| | | | Specialized REITs (24.92%) | |
| | 10,107 | | | Alexandria Real Estate Equities, Inc.3 | | $ | 1,717,719 | | | $ | 1,838,868 | |
| | 13,857 | | | American Tower Corp. | | | 3,235,053 | | | | 3,743,330 | |
| | 34,696 | | | Americold Realty Trust3 | | | 1,200,178 | | | | 1,313,244 | |
| | 19,693 | | | CoreSite Realty Corp. | | | 2,468,663 | | | | 2,650,678 | |
| | 7,165 | | | Crown Castle International Corp. | | | 1,101,215 | | | | 1,397,891 | |
| | 3,322 | | | Equinix, Inc. | | | 2,222,030 | | | | 2,666,237 | |
| | 35,118 | | | Gaming and Leisure Properties, Inc. | | | 1,514,096 | | | | 1,627,017 | |
| | 7,714 | | | Public Storage | | | 1,989,944 | | | | 2,319,523 | |
| | 2,442 | | | SBA Communications Corp. | | | 680,546 | | | | 778,265 | |
| | | | | | | | | | | | |
| | | | 16,129,444 | | | | 18,335,053 | |
| | | | | | | | | | | | |
| | Total Real Estate | | | 50,964,685 | | | | 58,359,673 | |
| | | | | | | | | | | | |
| Special Purpose Acquisition Company (1.58%) | |
| | 94,224 | | | Fifth Wall Acquisition Corp. I, Cl A1 | | | 961,740 | | | | 1,159,897 | |
| | | | | | | | | | | | |
| Utilities (3.58%) | |
| | | | Multi-Utilities (3.58%) | | | | | | | | |
| | 47,371 | | | Brookfield Infrastructure Partners L.P.2 | | | 2,409,162 | | | | 2,631,459 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 62,077,481 | | | | 71,486,792 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
| Principal Amount | | | | | | |
| Short Term Investments (2.66%) | |
| | $1,954,026 | | | Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 6/30/2021, 0.00%
due 7/1/2021; Proceeds at
maturity - $1,954,026;
(Fully collateralized by
$1,991,900 U.S. Treasury Note,
1.25% due 6/30/2028
Market value - $1,993,145)4 | | | 1,954,026 | | | | 1,954,026 | |
| | | | | | | | | | | | |
| | Total Investments (99.83%) | | $ | 64,031,507 | | | | 73,440,818 | |
| | | | | | | | | | | | |
| | Cash and Other Assets Less Liabilities (0.17%) | | | | 126,526 | |
| | | | | | | | | | | | |
| | Net Assets | | | | | | $ | 73,567,344 | |
| | | | | | | | | | | | |
| Retail Shares (Equivalent to $16.31 per share
based on 783,880 shares outstanding) |
| | $ | 12,784,978 | |
| | | | | | | | | | | | |
| Institutional Shares (Equivalent to $16.42 per share
based on 3,659,625 shares outstanding) |
| | $ | 60,098,883 | |
| | | | | | | | | | | | |
| R6 Shares (Equivalent to $16.41 per share
based on 41,655 shares outstanding) |
| | $ | 683,483 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited). |
| 4 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
| | All securities are Level 1, unless otherwise noted. |
| | |
| 34 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Health Care Fund |
STATEMENT OF NET ASSETS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (91.67%) | |
| Health Care (88.98%) | |
| | | | Biotechnology (22.66%) | | | | | | | | |
| | 54,025 | | | Acceleron Pharma, Inc.1 | | $ | 5,943,074 | | | $ | 6,779,597 | |
| | 21,378 | | | argenx SE, ADR1,2 | | | 5,428,328 | | | | 6,436,275 | |
| | 42,253 | | | Arrowhead Pharmaceuticals, Inc.1 | | | 2,456,933 | | | | 3,499,393 | |
| | 15,117 | | | Beam Therapeutics, Inc.1 | | | 1,412,925 | | | | 1,945,709 | |
| | 10,175 | | | BioNTech SE, ADR1,2 | | | 1,072,509 | | | | 2,277,979 | |
| | 28,164 | | | BridgeBio Pharma, Inc.1 | | | 1,271,540 | | | | 1,716,877 | |
| | 29,200 | | | Denali Therapeutics, Inc.1 | | | 2,105,148 | | | | 2,290,448 | |
| | 34,762 | | | Dicerna Pharmaceuticals, Inc.1 | | | 821,180 | | | | 1,297,318 | |
| | 81,414 | | | Genmab A/S, ADR1,2 | | | 3,131,661 | | | | 3,324,134 | |
| | 10,032 | | | Moderna, Inc.1 | | | 1,314,758 | | | | 2,357,319 | |
| | 44,857 | | | Recursion Pharmaceuticals, Inc., Cl A1 | | | 807,426 | | | | 1,637,281 | |
| | 16,500 | | | Twist Bioscience Corp.1 | | | 1,871,908 | | | | 2,198,625 | |
| | 19,036 | | | Zai Lab Limited, ADR1,2 | | | 2,065,700 | | | | 3,369,182 | |
| | | | | | | | | | | | |
| | | | | | | 29,703,090 | | | | 39,130,137 | |
| | | |
| | | | Health Care Equipment (20.82%) | | | | | | | | |
| | 24,262 | | | Abbott Laboratories | | | 2,250,311 | | | | 2,812,694 | |
| | 22,500 | | | Butterfly Network, Inc.1 | | | 225,000 | | | | 325,800 | |
| | 22,191 | | | CryoPort, Inc.1 | | | 764,574 | | | | 1,400,252 | |
| | 4,147 | | | DexCom, Inc.1 | | | 1,251,833 | | | | 1,770,769 | |
| | 26,116 | | | Eargo, Inc.1 | | | 950,321 | | | | 1,042,289 | |
| | 45,351 | | | Edwards Lifesciences Corp.1 | | | 3,711,720 | | | | 4,697,003 | |
| | 3,895 | | | IDEXX Laboratories, Inc.1 | | | 1,598,485 | | | | 2,459,887 | |
| | 30,028 | | | Inari Medical, Inc.1 | | | 2,401,123 | | | | 2,801,012 | |
| | 12,035 | | | Inspire Medical Systems, Inc.1,3 | | | 1,768,419 | | | | 2,325,884 | |
| | 12,115 | | | Insulet Corp.1 | | | 2,791,858 | | | | 3,325,689 | |
| | 3,411 | | | Intuitive Surgical, Inc.1 | | | 2,293,360 | | | | 3,136,892 | |
| | 1,387,480 | | | Opsens, Inc. (Canada)1,2 | | | 2,019,084 | | | | 2,540,803 | |
| | 12,500 | | | Shockwave Medical, Inc.1 | | | 918,119 | | | | 2,371,625 | |
| | 24,662 | | | Silk Road Medical, Inc.1,3 | | | 1,118,684 | | | | 1,180,323 | |
| | 9,349 | | | Teleflex, Inc. | | | 3,539,948 | | | | 3,756,335 | |
| | | | | | | | | | | | |
| | | | | | | 27,602,839 | | | | 35,947,257 | |
| | | |
| | | | Health Care Services (0.95%) | | | | | | | | |
| | 6,900 | | | Cigna Corp. | | | 1,642,559 | | | | 1,635,783 | |
| | | |
| | | | Health Care Supplies (3.07%) | | | | | | | | |
| | 21,100 | | | Establishment Labs Holdings, Inc.1,2 | | | 1,652,035 | | | | 1,842,874 | |
| | 9,634 | | | West Pharmaceutical Services, Inc. | | | 2,518,660 | | | | 3,459,569 | |
| | | | | | | | | | | | |
| | | | | | | 4,170,695 | | | | 5,302,443 | |
| | | |
| | | | Health Care Technology (2.22%) | | | | | | | | |
| | 6,738 | | | Certara, Inc.1 | | | 154,974 | | | | 190,887 | |
| | 31,519 | | | Schrödinger, Inc.1 | | | 1,548,832 | | | | 2,383,152 | |
| | 4,060 | | | Veeva Systems, Inc., Cl A1 | | | 945,478 | | | | 1,262,457 | |
| | | | | | | | | | | | |
| | | | | | | 2,649,284 | | | | 3,836,496 | |
| | | |
| | | | Life Sciences Tools & Services (21.53%) | | | | | | | | |
| | 8,740 | | | 10X Genomics, Inc., Cl A1 | | | 983,351 | | | | 1,711,467 | |
| | 15,730 | | | Bio-Techne Corporation | | | 5,477,260 | | | | 7,082,590 | |
| | 27,754 | | | Guardant Health, Inc.1,3 | | | 3,198,527 | | | | 3,446,769 | |
| | 43,223 | | | ICON plc1,2 | | | 8,456,964 | | | | 8,934,626 | |
| | 2,837 | | | Illumina, Inc.1 | | | 848,377 | | | | 1,342,497 | |
| | 171,654 | | | MaxCyte, Inc. (United Kingdom)1,2,3 | | | 1,812,362 | | | | 2,132,292 | |
| | 3,110 | | | Mettler-Toledo International, Inc.1 | | | 3,304,433 | | | | 4,308,407 | |
| | 67,322 | | | Olink Holding AB, ADR1,2 | | | 1,838,639 | | | | 2,317,223 | |
| | 6,020 | | | Seer, Inc.1 | | | 114,380 | | | | 197,336 | |
| | 11,299 | | | Thermo Fisher Scientific, Inc. | | | 4,972,509 | | | | 5,700,007 | |
| | | | | | | | | | | | |
| | | | | | | 31,006,802 | | | | 37,173,214 | |
| | | |
| | | | Managed Health Care (11.03%) | | | | | | | | |
| | 27,000 | | | HealthEquity, Inc.1 | | | 2,104,809 | | | | 2,172,960 | |
| | 14,550 | | | Humana, Inc. | | | 5,834,070 | | | | 6,441,576 | |
| | 26,072 | | | UnitedHealth Group, Incorporated | | | 8,609,313 | | | | 10,440,272 | |
| | | | | | | | | | | | |
| | | | | | | 16,548,192 | | | | 19,054,808 | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Health Care (continued) | |
| | | | Pharmaceuticals (6.70%) | | | | | | | | |
| | 71,222 | | | Dechra Pharmaceuticals PLC
(United Kingdom)2 | | $ | 3,335,995 | | | $ | 4,305,385 | |
| | 13,592 | | | Eli Lilly & Co. | | | 2,826,035 | | | | 3,119,636 | |
| | 22,228 | | | Zoetis, Inc. | | | 3,487,503 | | | | 4,142,410 | |
| | | | | | | | | | | | |
| | | | | | | 9,649,533 | | | | 11,567,431 | |
| | | | | | | | | | | | |
| | Total Health Care | | | 122,972,994 | | | | 153,647,569 | |
| | | | | | | | | | | | |
|
| Materials (0.92%) | |
| | | | Commodity Chemicals (0.92%) | | | | | | | | |
| | 39,698 | | | Zymergen, Inc.1 | | | 1,223,843 | | | | 1,588,317 | |
| | | | | | | | | | | | |
|
| Real Estate (1.77%) | |
| | | | Specialized REITs (1.77%) | | | | | | | | |
| | 16,829 | | | Alexandria Real Estate Equities, Inc.3 | | | 2,773,868 | | | | 3,061,868 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 126,970,705 | | | | 158,297,754 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
| Principal Amount | | | | | | |
| Short Term Investments (8.93%) | |
| | $15,423,432 | | | Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 6/30/2021, 0.00%
due 7/1/2021; Proceeds at
maturity - $15,423,432;
(Fully collateralized by
$15,722,100 U.S. Treasury Note,
1.25% due 6/30/2028
Market value - $15,731,926)4 | | | 15,423,432 | | | | 15,423,432 | |
| | | | | | | | | | | | |
| | Total Investments (100.60%) | | $ | 142,394,137 | | | | 173,721,186 | |
| | | | | | | | | | | | |
| | Liabilities Less Cash and Other Assets (-0.60%) | | | | (1,043,214 | ) |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 172,677,972 | |
| | | | | | | | | | | | |
| Retail Shares (Equivalent to $20.99 per share
based on 2,241,708 shares outstanding) |
| | $ | 47,052,167 | |
| | | | | | | | | | | | |
| Institutional Shares (Equivalent to $21.16 per share
based on 5,657,874 shares outstanding) |
| | $ | 119,717,740 | |
| | | | | | | | | | | | |
| R6 Shares (Equivalent to $21.15 per share
based on 279,311 shares outstanding) |
| | $ | 5,908,065 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | The Adviser has reclassified/classified certain securities in or out of this sub-industry. Such reclassifications/classifications are not supported by S&P or MSCI (unaudited). |
| 4 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
| | All securities are Level 1, unless otherwise noted. |
| | |
| See Notes to Financial Statements. | | 35 |
| | |
| Baron FinTech Fund | | June 30, 2021 |
STATEMENT OF NET ASSETS (Unaudited)
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (94.98%) | |
| Communication Services (2.16%) | |
| | | | Interactive Media & Services (2.16%) | | | | | | | | |
| | 7,500 | | | Zillow Group, Inc., Cl C1 | | $ | 956,220 | | | $ | 916,650 | |
| | 8,000 | | | ZoomInfo Technologies Inc., Cl A1 | | | 279,630 | | | | 417,360 | |
| | | | | | | | | | | | |
| | Total Communication Services | | | 1,235,850 | | | | 1,334,010 | |
| | | | | | | | | | | | |
|
| Consumer Discretionary (3.69%) | |
| | | | Internet & Direct Marketing Retail (3.69%) | | | | | | | | |
| | 3,200 | | | Alibaba Group Holding Limited, ADR1,2 | | | 778,385 | | | | 725,696 | |
| | 1,000 | | | MercadoLibre, Inc.1 | | | 1,426,843 | | | | 1,557,790 | |
| | | | | | | | | | | | |
| | Total Consumer Discretionary | | | 2,205,228 | | | | 2,283,486 | |
| | | | | | | | | | | | |
| Financials (22.48%) | |
| | | | Asset Management & Custody Banks (2.48%) | | | | | | | | |
| | 1,750 | | | BlackRock, Inc. | | | 1,371,261 | | | | 1,531,197 | |
| | | |
| | | | Consumer Finance (1.53%) | | | | | | | | |
| | 49,505 | | | SoFi Technologies, Inc.1 | | | 495,050 | | | | 949,011 | |
| | | |
| | | | Diversified Banks (2.95%) | | | | | | | | |
| | 30,000 | | | Banco Inter SA (Brazil)2 | | | 387,383 | | | | 469,199 | |
| | 8,000 | | | TCS Group Holding PLC, GDR2 | | | 471,203 | | | | 700,000 | |
| | 7,500 | | | TCS Group Holding PLC, GDR2,5 | | | 574,270 | | | | 656,575 | |
| | | | | | | | | | | | |
| | | | 1,432,856 | | | | 1,825,774 | |
| | | |
| | | | Financial Exchanges & Data (12.73%) | | | | | | | | |
| | 2,000 | | | CME Group, Inc. | | | 395,044 | | | | 425,360 | |
| | 3,000 | | | London Stock Exchange Group plc
(United Kingdom)2,5 | | | 336,035 | | | | 331,531 | |
| | 1,600 | | | MarketAxess Holdings, Inc. | | | 750,037 | | | | 741,744 | |
| | 4,300 | | | Moody’s Corp. | | | 1,216,563 | | | | 1,558,191 | |
| | 3,300 | | | MSCI, Inc. | | | 1,202,342 | | | | 1,759,164 | |
| | 5,600 | | | S&P Global, Inc. | | | 1,885,140 | | | | 2,298,520 | |
| | 9,000 | | | Tradeweb Markets, Inc., Cl A | | | 668,211 | | | | 761,040 | |
| | | | | | | | | | | | |
| | | | 6,453,372 | | | | 7,875,550 | |
| |
| | | | Insurance Brokers (0.78%) | |
| | 18,000 | | | BRP Group, Inc., Cl A1 | | | 522,547 | | | | 479,700 | |
| | | |
| | | | Investment Banking & Brokerage (1.45%) | | | | | | | | |
| | 11,000 | | | Houlihan Lokey, Inc. | | | 706,990 | | | | 899,690 | |
| | | |
| | | | Property & Casualty Insurance (0.56%) | | | | | | | | |
| | 2,100 | | | Kinsale Capital Group, Inc. | | | 271,854 | | | | 346,017 | |
| | | | | | | | | | | | |
| | Total Financials | | | 11,253,930 | | | | 13,906,939 | |
| | | | | | | | | | | | |
| Industrials (7.89%) | |
| | | | Research & Consulting Services (7.89%) | | | | | | | | |
| | 14,000 | | | CoStar Group, Inc.1 | | | 1,153,265 | | | | 1,159,480 | |
| | 13,000 | | | IHS Markit Ltd.2 | | | 1,130,402 | | | | 1,464,580 | |
| | 15,000 | | | TransUnion | | | 1,396,798 | | | | 1,647,150 | |
| | 3,500 | | | Verisk Analytics, Inc. | | | 618,393 | | | | 611,520 | |
| | | | | | | | | | | | |
| | Total Industrials | | | 4,298,858 | | | | 4,882,730 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| Shares | | | | | Cost | | | Value | |
| Common Stocks (continued) | |
| Information Technology (58.76%) | |
| | | | Application Software (11.59%) | | | | | | | | |
| | 2,664 | | | Alkami Technology, Inc.1 | | $ | 79,920 | | | $ | 95,025 | |
| | 4,300 | | | Bill.Com Holdings, Inc.1 | | | 472,774 | | | | 787,674 | |
| | 3,600 | | | Ceridian HCM Holding, Inc.1 | | | 328,451 | | | | 345,312 | |
| | 5,500 | | | Duck Creek Technologies, Inc.1 | | | 148,500 | | | | 239,305 | |
| | 3,700 | | | Fair Isaac Corp.1 | | | 1,665,412 | | | | 1,859,916 | |
| | 11,000 | | | Guidewire Software, Inc.1 | | | 1,275,495 | | | | 1,239,920 | |
| | 5,300 | | | Intuit, Inc. | | | 1,775,250 | | | | 2,597,901 | |
| | 70 | | | nCino, Inc.1 | | | 2,170 | | | | 4,194 | |
| | | | | | | | | | | | |
| | | | 5,747,972 | | | | 7,169,247 | |
| | | | Data Processing & Outsourced Services (33.56%) | | | | | | | | |
| | 800 | | | Adyen N.V., 144A (Netherlands)1,2,5 | | | 1,193,184 | | | | 1,961,864 | |
| | 38,000 | | | Dlocal Ltd., Cl A1,2 | | | 906,023 | | | | 1,996,140 | |
| | 10,000 | | | Fidelity National Information Services, Inc. | | | 1,430,601 | | | | 1,416,700 | |
| | 3,300 | | | Global Payments, Inc. | | | 649,966 | | | | 618,882 | |
| | 3,500 | | | Jack Henry & Associates, Inc. | | | 568,980 | | | | 572,285 | |
| | 22,000 | | | Marqeta, Inc.1 | | | 594,000 | | | | 617,540 | |
| | 5,800 | | | MasterCard Incorporated, Cl A | | | 1,939,874 | | | | 2,117,522 | |
| | 100,000 | | | Network International Holdings plc, 144A
(United Kingdom)1,2,5 | | | 507,940 | | | | 506,654 | |
| | 21,000 | | | Nuvei Corp. (Canada)1,2 | | | 912,606 | | | | 1,732,500 | |
| | 25,000 | | | Paya Holdings, Inc., Cl A1 | | | 281,291 | | | | 275,500 | |
| | 16,000 | | | Paymentus Holdings, Inc., Cl A1 | | | 356,901 | | | | 568,000 | |
| | 8,900 | | | PayPal Holdings, Inc.1,3 | | | 1,635,006 | | | | 2,594,172 | |
| | 17,000 | | | Repay Holdings Corporation1 | | | 320,579 | | | | 408,680 | |
| | 7,000 | | | Shift4 Payments, Inc., Cl A1 | | | 345,977 | | | | 656,040 | |
| | 8,800 | | | Square, Inc., Cl A1 | | | 1,677,472 | | | | 2,145,440 | |
| | 11,000 | | | Visa, Inc., Cl A | | | 2,294,510 | | | | 2,572,020 | |
| | | | | | | | | | | | |
| | | | | | | 15,614,910 | | | | 20,759,939 | |
| | | |
| | | | Internet Services & Infrastructure (2.83%) | | | | | | | | |
| | 1,200 | | | Shopify, Inc., Cl A1,2 | | | 1,376,343 | | | | 1,753,176 | |
| | | |
| | | | IT Consulting & Other Services (10.78%) | | | | | | | | |
| | 4,600 | | | Accenture plc, Cl A2 | | | 1,108,690 | | | | 1,356,034 | |
| | 22,800 | | | Endava plc, ADR1,2 | | | 1,358,700 | | | | 2,585,064 | |
| | 4,400 | | | EPAM Systems, Inc.1 | | | 1,259,649 | | | | 2,248,224 | |
| | 32,000 | | | Grid Dynamics Holdings, Inc.1 | | | 391,672 | | | | 480,960 | |
| | | | | | | | | | | | |
| | | | | | | 4,118,711 | | | | 6,670,282 | |
| | | | | | | | | | | | |
| | Total Information Technology | | | 26,857,936 | | | | 36,352,644 | |
| | | | | | | | | | | | |
| | Total Common Stocks | | | 45,851,802 | | | | 58,759,809 | |
| | | | | | | | | | | | |
| | |
| 36 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron FinTech Fund |
STATEMENT OF NET ASSETS (Unaudited) (Continued)
| | | | | | | | | | | | |
| | |
| Principal Amount | | Cost | | | Value | |
| Short Term Investments (10.25%) | |
| | $6,338,710 | | | Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 6/30/2021, 0.00%
due 7/1/2021; Proceeds at
maturity - $6,338,710;
(Fully collateralized by
$6,461,500 U.S. Treasury
Note, 1.25% due 6/30/2028
Market value - $6,465,538)5 | | $ | 6,338,710 | | | $ | 6,338,710 | |
| | | | | | | | | | | | |
| | Total Investments (105.22%) | | $ | 52,190,512 | | | | 65,098,519 | |
| | | | | | | | | | | | |
| | Liabilities Less Cash and Other Assets (-5.22%)4 | | | | (3,231,830 | ) |
| | | | | | | | | | | | |
| | Net Assets | | | $ | 61,866,689 | |
| | | | | | | | | | | | |
| Retail Shares (Equivalent to $16.91 per share
based on 508,945 shares outstanding) |
| | $ | 8,605,991 | |
| | | | | | | | | | | | |
| Institutional Shares (Equivalent to $16.97 per share
based on 2,829,428 shares outstanding) |
| | $ | 48,001,853 | |
| | | | | | | | | | | | |
| R6 Shares (Equivalent to $16.97 per share
based on 309,943 shares outstanding) |
| | $ | 5,258,845 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| 1 | Non-income producing securities. |
| 3 | All or a portion of these securities are segregated for an unfunded commitment. Total value of securities segregated is $874,440. |
| 4 | Includes unrealized depreciation of $8,208 on an unfunded commitment with a special purpose acquisition company to purchase a when-issued private investment in a public entity. |
| 5 | Level 2 security. See Note 7 regarding Fair Value Measurements. |
| ADR | American Depositary Receipt. |
| GDR | Global Depositary Receipt. |
| 144A | Security is exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. At June 30, 2021, the market value of Rule 144A securities amounted to $2,468,518 or 3.99% of net assets. |
All securities are Level 1, unless otherwise noted.
| | |
| See Notes to Financial Statements. | | 37 |
| | |
| Baron Select Funds | | June 30, 2021 |
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
| | | | | | | | | | | | | | | | |
| | | Baron Partners
Fund | | | Baron Focused
Growth Fund | | | Baron
International
Growth Fund | | | Baron Real
Estate Fund | |
Assets: | | | | | | | | | | | | | | | | |
Investments in securities, at value* | | | | | | | | | | | | | | | | |
Unaffiliated investments | | $ | 7,448,303,222 | | | $ | 656,591,951 | | | $ | 689,447,368 | | | $ | 1,706,763,224 | |
“Affiliated” investments | | | — | | | | — | | | | — | | | | 34,902,555 | |
Repurchase agreements, at value** | | | 4,893,675 | | | | 32,549,272 | | | | 33,446,185 | | | | 57,298,915 | |
| | | | | | | | | | | | | | | | |
Total investments, at value | | | 7,453,196,897 | | | | 689,141,223 | | | | 722,893,553 | | | | 1,798,964,694 | |
Foreign currency, at value† | | | — | | | | — | | | | 251,664 | | | | — | |
Cash | | | 110,500 | | | | — | | | | — | | | | 111,390 | |
Receivable for shares sold | | | 5,041,450 | | | | 458,809 | | | | 1,147,436 | | | | 8,229,241 | |
Dividends and interest receivable | | | 325,625 | | | | 60,175 | | | | 770,798 | | | | 1,772,352 | |
Prepaid expenses | | | 266,972 | | | | 5,343 | | | | 4,690 | | | | 8,472 | |
Receivable for securities sold | | | — | | | | — | | | | — | | | | 3,043,587 | |
Net unrealized appreciation on unfunded commitments | | | — | | | | 154,900 | | | | — | | | | — | |
Other assets | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
| | | 7,458,941,444 | | | | 689,820,450 | | | | 725,068,141 | | | | 1,812,129,736 | |
| | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | |
Payable for borrowings against line of credit | | | 561,500,000 | | | | — | | | | — | | | | — | |
Payable for shares redeemed | | | 4,371,375 | | | | 94,442 | | | | 180,812 | | | | 1,819,727 | |
Distribution fees payable (Note 4) | | | 785 | | | | 447 | | | | 252 | | | | 696 | |
Investment advisory fees payable (Note 4) | | | 301 | | | | 975 | | | | 651 | | | | 804 | |
Due to custodian bank | | | — | | | | — | | | | — | | | | — | |
Payable for securities purchased | | | — | | | | — | | | | 660,907 | | | | 26,782,349 | |
Net unrealized depreciation on unfunded commitments | | | 200,600 | | | | — | | | | 451,750 | | | | 197,400 | |
Accrued capital gains taxes | | | — | | | | — | | | | 1,482,564 | | | | — | |
Accrued expenses and other payables | | | 1,191,752 | | | | 76,036 | | | | 189,557 | | | | 181,305 | |
| | | | | | | | | | | | | | | | |
| | | 567,264,813 | | | | 171,900 | | | | 2,966,493 | | | | 28,982,281 | |
| | | | | | | | | | | | | | | | |
Net Assets | | $ | 6,891,676,631 | | | $ | 689,648,550 | | | $ | 722,101,648 | | | $ | 1,783,147,455 | |
| | | | | | | | | | | | | | | | |
Net Assets consist of: | | | | | | | | | | | | | | | | |
Paid-in capital | | $ | 724,111,095 | | | $ | 193,613,832 | | | $ | 472,520,283 | | | $ | 1,138,277,550 | |
Distributable earnings/(losses) | | | 6,167,565,536 | | | | 496,034,718 | | | | 249,581,365 | | | | 644,869,905 | |
| | | | | | | | | | | | | | | | |
Net Assets | | $ | 6,891,676,631 | | | $ | 689,648,550 | | | $ | 722,101,648 | | | $ | 1,783,147,455 | |
| | | | | | | | | | | | | | | | |
Retail Shares: | | | | | | | | | | | | | | | | |
Net Assets | | $ | 3,181,133,847 | | | $ | 176,355,662 | | | $ | 95,290,209 | | | $ | 481,147,844 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 18,577,871 | | | | 3,972,304 | | | | 2,687,157 | | | | 11,770,320 | |
| | | | | | | | | | | | | | | | |
Net Asset Value and Offering Price Per Share | | $ | 171.23 | | | $ | 44.40 | | | $ | 35.46 | | | $ | 40.88 | |
| | | | | | | | | | | | | | | | |
Institutional Shares: | | | | | | | | | | | | | | | | |
Net Assets | | $ | 3,214,676,405 | | | $ | 235,067,117 | | | $ | 466,326,420 | | | $ | 1,274,676,697 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 18,210,369 | | | | 5,144,669 | | | | 12,916,857 | | | | 30,446,209 | |
| | | | | | | | | | | | | | | | |
Net Asset Value and Offering Price Per Share | | $ | 176.53 | | | $ | 45.69 | | | $ | 36.10 | | | $ | 41.87 | |
| | | | | | | | | | | | | | | | |
R6 Shares: | | | | | | | | | | | | | | | | |
Net Assets | | $ | 495,866,379 | | | $ | 278,225,771 | | | $ | 160,485,019 | | | $ | 27,322,914 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 2,809,121 | | | | 6,085,577 | | | | 4,447,583 | | | | 652,591 | |
| | | | | | | | | | | | | | | | |
Net Asset Value and Offering Price Per Share | | $ | 176.52 | | | $ | 45.72 | | | $ | 36.08 | | | $ | 41.87 | |
| | | | | | | | | | | | | | | | |
| | | | |
*Investments in securities, at cost | | | | | | | | | | | | | | | | |
Unaffiliated investments | | $ | 1,878,340,462 | | | $ | 208,461,773 | | | $ | 452,845,364 | | | $ | 1,195,194,880 | |
“Affiliated” investments | | | — | | | | — | | | | — | | | | 28,607,896 | |
**Repurchase agreements, at cost | | | 4,893,675 | | | | 32,549,272 | | | | 33,446,185 | | | | 57,298,915 | |
| | | | | | | | | | | | | | | | |
Total investments, at cost | | $ | 1,883,234,137 | | | $ | 241,011,045 | | | $ | 486,291,549 | | | $ | 1,281,101,691 | |
| | | | | | | | | | | | | | | | |
| | | | |
†Foreign currency, at cost: | | $ | — | | | $ | — | | | $ | 252,898 | | | $ | — | |
| | | | | | | | | | | | | | | | |
| | |
| 38 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Select Funds |
STATEMENTS OF ASSETS AND LIABILITIES (Unaudited) (Continued)
| | | | | | | | | | | | | | | | | | | | |
| | | Baron
Emerging
Markets Fund | | | Baron Global
Advantage
Fund | | | Baron
Real Estate
Income Fund | | | Baron
Health
Care Fund | | | Baron
FinTech
Fund | |
Assets: | | | | | | | | | | | | | | | | | | | | |
Investments in securities, at value* | | | | | | | | | | | | | | | | | | | | |
Unaffiliated investments | | $ | 8,208,205,226 | | | $ | 2,778,513,681 | | | $ | 71,486,792 | | | $ | 158,297,754 | | | $ | 58,759,809 | |
“Affiliated” investments | | | — | | | | 25,841,516 | | | | — | | | | — | | | | — | |
Repurchase agreements, at value** | | | 498,116,757 | | | | 82,971,185 | | | | 1,954,026 | | | | 15,423,432 | | | | 6,338,710 | |
| | | | | | | | | | | | | | | | | | | | |
Total investments, at value | | | 8,706,321,983 | | | | 2,887,326,382 | | | | 73,440,818 | | | | 173,721,186 | | | | 65,098,519 | |
Foreign currency, at value† | | | 41,722,326 | | | | — | | | | — | | | | 5,674 | | | | 2,146 | |
Cash | | | 22,659 | | | | — | | | | 316 | | | | — | | | | — | |
Receivable for shares sold | | | 19,708,528 | | | | 17,507,186 | | | | 567,382 | | | | 1,394,657 | | | | 68,044 | |
Dividends and interest receivable | | | 6,926,636 | | | | — | | | | 185,135 | | | | 31,187 | | | | — | |
Prepaid expenses | | | 53,681 | | | | 18,801 | | | | 311 | | | | 987 | | | | 230 | |
Receivable for securities sold | | | — | | | | 6,179,880 | | | | 121,836 | | | | — | | | | — | |
Net unrealized appreciation on unfunded commitments | | | 2,073,174 | | | | 430,146 | | | | — | | | | — | | | | — | |
Other assets | | | 399,247 | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | 8,777,228,234 | | | | 2,911,462,395 | | | | 74,315,798 | | | | 175,153,691 | | | | 65,168,939 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | |
Payable for borrowings against line of credit | | | — | | | | — | | | | — | | | | — | | | | — | |
Payable for shares redeemed | | | 6,167,473 | | | | 1,947,871 | | | | 596 | | | | 27,647 | | | | — | |
Distribution fees payable (Note 4) | | | 993 | | | | 920 | | | | 102 | | | | 440 | | | | 281 | |
Investment advisory fees payable (Note 4) | | | 66 | | | | 877 | | | | 108 | | | | 779 | | | | 262 | |
Due to custodian bank | | | — | | | | 17 | | | | — | | | | — | | | | — | |
Payable for securities purchased | | | 46,353,516 | | | | 13,068,166 | | | | 688,407 | | | | 2,393,486 | | | | 3,245,109 | |
Net unrealized depreciation on unfunded commitments | | | — | | | | — | | | | — | | | | — | | | | 8,208 | |
Accrued capital gains taxes | | | 41,247,869 | | | | 569,568 | | | | — | | | | — | | | | — | |
Accrued expenses and other payables | | | 1,924,317 | | | | 270,009 | | | | 59,241 | | | | 53,367 | | | | 48,390 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 95,694,234 | | | | 15,857,428 | | | | 748,454 | | | | 2,475,719 | | | | 3,302,250 | |
| | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 8,681,534,000 | | | $ | 2,895,604,967 | | | $ | 73,567,344 | | | $ | 172,677,972 | | | $ | 61,866,689 | |
| | | | | | | | | | | | | | | | | | | | |
Net Assets consist of: | | | | | | | | | | | | | | | | | | | | |
Paid-in capital | | $ | 6,237,443,531 | | | $ | 1,835,292,507 | | | $ | 63,981,210 | | | $ | 141,423,045 | | | $ | 48,965,330 | |
Distributable earnings/(losses) | | | 2,444,090,469 | | | | 1,060,312,460 | | | | 9,586,134 | | | | 31,254,927 | | | | 12,901,359 | |
| | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 8,681,534,000 | | | $ | 2,895,604,967 | | | $ | 73,567,344 | | | $ | 172,677,972 | | | $ | 61,866,689 | |
| | | | | | | | | | | | | | | | | | | | |
Retail Shares: | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 531,333,296 | | | $ | 971,173,756 | | | $ | 12,784,978 | | | $ | 47,052,167 | | | $ | 8,605,991 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 26,777,111 | | | | 17,239,459 | | | | 783,880 | | | | 2,241,708 | | | | 508,945 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value and Offering Price Per Share | | $ | 19.84 | | | $ | 56.33 | | | $ | 16.31 | | | $ | 20.99 | | | $ | 16.91 | |
| | | | | | | | | | | | | | | | | | | | |
Institutional Shares: | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 8,134,075,850 | | | $ | 1,905,366,073 | | | $ | 60,098,883 | | | $ | 119,717,740 | | | $ | 48,001,853 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 407,628,152 | | | | 33,189,649 | | | | 3,659,625 | | | | 5,657,874 | | | | 2,829,428 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value and Offering Price Per Share | | $ | 19.95 | | | $ | 57.41 | | | $ | 16.42 | | | $ | 21.16 | | | $ | 16.97 | |
| | | | | | | | | | | | | | | | | | | | |
R6 Shares: | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 16,124,854 | | | $ | 19,065,138 | | | $ | 683,483 | | | $ | 5,908,065 | | | $ | 5,258,845 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 807,619 | | | | 331,908 | | | | 41,655 | | | | 279,311 | | | | 309,943 | |
| | | | | | | | | | | | | | | | | | | | |
Net Asset Value and Offering Price Per Share | | $ | 19.97 | | | $ | 57.44 | | | $ | 16.41 | | | $ | 21.15 | | | $ | 16.97 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
*Investments in securities, at cost | | | | | | | | | | | | | | | | | | | | |
Unaffiliated investments | | $ | 5,476,508,016 | | | $ | 1,674,597,535 | | | $ | 62,077,481 | | | $ | 126,970,705 | | | $ | 45,851,802 | |
“Affiliated” investments | | | — | | | | 24,984,946 | | | | — | | | | — | | | | — | |
**Repurchase agreements, at cost | | | 498,116,757 | | | | 82,971,185 | | | | 1,954,026 | | | | 15,423,432 | | | | 6,338,710 | |
| | | | | | | | | | | | | | | | | | | | |
Total investments, at cost | | $ | 5,974,624,773 | | | $ | 1,782,553,666 | | | $ | 64,031,507 | | | $ | 142,394,137 | | | $ | 52,190,512 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
†Foreign currency, at cost: | | $ | 41,765,722 | | | $ | — | | | $ | — | | | $ | 5,718 | | | $ | 2,194 | |
| | | | | | | | | | | | | | | | | | | | |
| | |
| See Notes to Financial Statements. | | 39 |
| | |
| Baron Select Funds | | June 30, 2021 |
STATEMENTS OF OPERATIONS (Unaudited)
|
FOR THE SIX MONTHS ENDED JUNE 30, 2021 |
| | | | | | | | | | | | | | | | |
| | | Baron Partners
Fund | | | Baron Focused
Growth Fund | | | Baron
International
Growth Fund | | | Baron Real
Estate Fund | |
Investment income: | | | | | | | | | | | | | | | | |
Income: | | | | | | | | | | | | | | | | |
Dividends — Unaffiliated investments | | $ | 6,866,721 | | | $ | 249,725 | | | $ | 4,939,981 | | | $ | 7,480,910 | |
Interest | | | — | | | | — | | | | 1,580 | | | | — | |
Foreign taxes withheld on dividends | | | (39,000 | ) | | | — | | | | (386,178 | ) | | | (34,907 | ) |
| | | | | | | | | | | | | | | | |
Total income | | | 6,827,721 | | | | 249,725 | | | | 4,555,383 | | | | 7,446,003 | |
| | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | |
Investment advisory fees (Note 4) | | | 34,693,344 | | | | 3,443,798 | | | | 2,882,429 | | | | 7,217,980 | |
Distribution fees — Retail Shares (Note 4) | | | 4,051,101 | | | | 218,534 | | | | 112,479 | | | | 517,057 | |
Shareholder servicing agent fees and expenses — Retail Shares | | | 139,890 | | | | 19,250 | | | | 12,032 | | | | 29,120 | |
Shareholder servicing agent fees and expenses — Institutional Shares | | | 63,530 | | | | 9,020 | | | | 12,856 | | | | 28,720 | |
Shareholder servicing agent fees and expenses — R6 Shares | | | 10,823 | | | | 6,237 | | | | 3,547 | | | | 532 | |
Line of credit fees | | | 1,192,607 | | | | 5,521 | | | | 5,192 | | | | 11,168 | |
Reports to shareholders | | | 223,150 | | | | 16,270 | | | | 35,070 | | | | 114,300 | |
Registration and filing fees | | | 212,400 | | | | 61,020 | | | | 68,095 | | | | 165,680 | |
Trustee fees and expenses (Note 4) | | | 121,679 | | | | 12,006 | | | | 11,135 | | | | 22,890 | |
Professional fees | | | 101,055 | | | | 26,139 | | | | 20,151 | | | | 34,740 | |
Custodian and fund accounting fees | | | 97,935 | | | | 14,725 | | | | 107,434 | | | | 32,554 | |
Insurance expense | | | 31,450 | | | | 3,160 | | | | 2,850 | | | | 5,186 | |
Administration fees | | | 30,319 | | | | 23,017 | | | | 27,978 | | | | 23,470 | |
Miscellaneous expenses | | | 2,100 | | | | 2,164 | | | | 2,164 | | | | 2,099 | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 40,971,383 | | | | 3,860,861 | | | | 3,303,412 | | | | 8,205,496 | |
| | | | | | | | | | | | | | | | |
Interest expense on borrowings | | | 1,308,309 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total expenses | | | 42,279,692 | | | | 3,860,861 | | | | 3,303,412 | | | | 8,205,496 | |
Reimbursement of expenses by Adviser — Retail Shares (Note 4) | | | — | | | | — | | | | (18,758 | ) | | | ��� | |
Reimbursement of expenses by Adviser — Institutional Shares (Note 4) | | | — | | | | — | | | | (45,316 | ) | | | — | |
Reimbursement of expenses by Adviser — R6 Shares (Note 4) | | | — | | | | — | | | | (13,486 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Net expenses | | | 42,279,692 | | | | 3,860,861 | | | | 3,225,852 | | | | 8,205,496 | |
| | | | | | | | | | | | | | | | |
Net investment income (loss) | | | (35,451,971 | ) | | | (3,611,136 | ) | | | 1,329,531 | | | | (759,493 | ) |
| | | | | | | | | | | | | | | | |
Realized and unrealized gain (loss) on investments: | | | | | | | | | | | | | | | | |
Net realized gain (loss) on investments sold — Unaffiliated investments | | | 318,277,323 | | | | 29,120,944 | | | | 27,007,377 | | | | 88,528,994 | |
Net realized gain (loss) on investments sold — “Affiliated” investments | | | — | | | | — | | | | — | | | | — | |
Net realized gain (loss) on foreign currency transactions | | | — | | | | — | | | | (35,683 | ) | | | 46,609 | |
Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | | | | |
Investments — Unaffiliated investments | | | 2,725,179 | | | | (10,890,635 | ) | | | 41,531,619 | 1 | | | 95,564,718 | |
Investments — “Affiliated” investments | | | — | | | | — | | | | — | | | | 6,294,659 | |
Unfunded commitments | | | (200,600 | ) | | | 154,900 | | | | (451,750 | ) | | | (197,400 | ) |
Foreign currency translations | | | — | | | | — | | | | (12,424 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Net gain (loss) on investments | | | 320,801,902 | | | | 18,385,209 | | | | 68,039,139 | | | | 190,237,580 | |
| | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | $ | 285,349,931 | | | $ | 14,774,073 | | | $ | 69,368,670 | | | $ | 189,478,087 | |
| | | | | | | | | | | | | | | | |
| 1 | Increase in accrued foreign capital gains tax of $368,267. |
| | |
| 40 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Select Funds |
STATEMENTS OF OPERATIONS (Unaudited) (Continued)
|
FOR THE SIX MONTHS ENDED JUNE 30, 2021 |
| | | | | | | | | | | | | | | | | | | | |
| | | Baron
Emerging
Markets Fund | | | Baron Global
Advantage
Fund | | | Baron
Real Estate
Income Fund | | | Baron
Health
Care Fund | | | Baron FinTech
Fund | |
Investment income: | | | | | | | | | | | | | | | | | | | | |
Income: | | | | | | | | | | | | | | | | | | | | |
Dividends — Unaffiliated investments | | $ | 53,458,452 | | | $ | 71,449 | | | $ | 582,179 | | | $ | 213,427 | | | $ | 76,805 | |
Interest | | | — | | | | — | | | | — | | | | — | | | | — | |
Foreign taxes withheld on dividends | | | (6,378,506 | ) | | | (10,717 | ) | | | (119 | ) | | | (64 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total income | | | 47,079,946 | | | | 60,732 | | | | 582,060 | | | | 213,363 | | | | 76,805 | |
| | | | | | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | | | | | |
Investment advisory fees (Note 4) | | | 38,877,410 | | | | 11,219,713 | | | | 192,244 | | | | 466,367 | | | | 173,351 | |
Distribution fees — Retail Shares (Note 4) | | | 655,344 | | | | 1,197,511 | | | | 8,407 | | | | 46,769 | | | | 8,771 | |
Shareholder servicing agent fees and expenses — Retail Shares | | | 32,070 | | | | 43,760 | | | | 7,380 | | | | 9,892 | | | | 7,722 | |
Shareholder servicing agent fees and expenses — Institutional Shares | | | 114,120 | | | | 47,850 | | | | 5,916 | | | | 6,060 | | | | 5,872 | |
Shareholder servicing agent fees and expenses — R6 Shares | | | 341 | | | | 370 | | | | 14 | | | | 121 | | | | 99 | |
Line of credit fees | | | 59,105 | | | | 21,403 | | | | 446 | | | | 978 | | | | 344 | |
Reports to shareholders | | | 617,300 | | | | 180,910 | | | | 2,795 | | | | 8,840 | | | | 1,281 | |
Registration and filing fees | | | 185,140 | | | | 277,318 | | | | 35,836 | | | | 59,373 | | | | 32,361 | |
Trustee fees and expenses (Note 4) | | | 129,721 | | | | 45,222 | | | | 772 | | | | 1,872 | | | | 807 | |
Professional fees | | | 100,725 | | | | 46,530 | | | | 20,160 | | | | 19,466 | | | | 40,933 | |
Custodian and fund accounting fees | | | 1,186,064 | | | | 63,388 | | | | 8,146 | | | | 6,243 | | | | 5,570 | |
Insurance expense | | | 34,185 | | | | 10,433 | | | | 222 | | | | 141 | | | | 168 | |
Administration fees | | | 29,153 | | | | 25,048 | | | | 22,338 | | | | 22,856 | | | | 22,165 | |
Miscellaneous expenses | | | 48,811 | | | | 2,787 | | | | 3,180 | | | | 2,163 | | | | 2,162 | |
| | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 42,069,489 | | | | 13,182,243 | | | | 307,856 | | | | 651,141 | | | | 301,606 | |
| | | | | | | | | | | | | | | | | | | | |
Interest expense on borrowings | | | — | | | | 816 | | | | 1,343 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 42,069,489 | | | | 13,183,059 | | | | 309,199 | | | | 651,141 | | | | 301,606 | |
Reimbursement of expenses by Adviser — Retail Shares (Note 4) | | | — | | | | (43,903 | ) | | | (16,781 | ) | | | (28,667 | ) | | | (20,521 | ) |
Reimbursement of expenses by Adviser — Institutional Shares (Note 4) | | | — | | | | (59,785 | ) | | | (76,459 | ) | | | (44,313 | ) | | | (58,063 | ) |
Reimbursement of expenses by Adviser — R6 Shares (Note 4) | | | — | | | | (439 | ) | | | (1,148 | ) | | | (2,843 | ) | | | (8,397 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net expenses | | | 42,069,489 | | | | 13,078,932 | | | | 214,811 | | | | 575,318 | | | | 214,625 | |
| | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 5,010,457 | | | | (13,018,200 | ) | | | 367,249 | | | | (361,955 | ) | | | (137,820 | ) |
| | | | | | | | | | | | | | | | | | | | |
Realized and unrealized gain (loss) on investments: | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on investments sold — Unaffiliated investments | | | 267,029,547 | 1 | | | 3,146,813 | | | | 329,787 | | | | (426,113 | ) | | | 149,952 | |
Net realized gain (loss) on investments sold — “Affiliated” investments | | | — | | | | (1,017 | ) | | | — | | | | — | | | | — | |
Net realized gain (loss) on foreign currency transactions | | | (1,730,815 | ) | | | (289,054 | ) | | | 682 | | | | (8,274 | ) | | | 389 | |
Change in net unrealized appreciation (depreciation) of: | | | | | | | | | | | | | | | | | | | | |
Investments — Unaffiliated investments | | | 70,497,226 | 2 | | | 239,711,263 | 3 | | | 6,966,072 | | | | 15,599,545 | | | | 7,305,561 | |
Investments — “Affiliated” investments | | | — | | | | (1,765,940 | ) | | | — | | | | — | | | | — | |
Unfunded commitments | | | 2,073,174 | | | | 430,146 | | | | — | | | | — | | | | (8,208 | ) |
Foreign currency translations | | | (49,204 | ) | | | (82 | ) | | | — | | | | 195 | | | | (155 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net gain (loss) on investments | | | 337,819,928 | | | | 241,232,129 | | | | 7,296,541 | | | | 15,165,353 | | | | 7,447,539 | |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | $ | 342,830,385 | | | $ | 228,213,929 | | | $ | 7,663,790 | | | $ | 14,803,398 | | | $ | 7,309,719 | |
| | | | | | | | | | | | | | | | | | | | |
| 1 | Net of realized foreign capital gains tax of $562. |
| 2 | Increase in accrued foreign capital gains tax of $13,040,373. |
| 3 | Increase in accrued foreign capital gains tax of $569,568. |
| | |
| See Notes to Financial Statements. | | 41 |
| | |
| Baron Select Funds | | June 30, 2021 |
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Baron Partners Fund | | | Baron Focused Growth Fund | | | Baron International
Growth Fund | |
| | | For the Six
Months Ended
June 30,
2021 | | | For the Year
Ended
December 31,
2020 | | | For the Six
Months Ended
June 30,
2021 | | | For the Year
Ended
December 31,
2020 | | | For the Six
Months Ended
June 30,
2021 | | | For the Year
Ended
December 31,
2020 | |
Increase (Decrease) in Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (35,451,971 | ) | | $ | (40,561,257 | ) | | $ | (3,611,136 | ) | | $ | (3,533,284 | ) | | $ | 1,329,531 | | | $ | 686,556 | |
Net realized gain (loss) | | | 318,277,323 | | | | 516,827,838 | | | | 29,120,944 | | | | 36,239,856 | | | | 26,971,694 | | | | (2,470,961 | ) |
Change in net unrealized appreciation (depreciation) | | | 2,524,579 | | | | 3,640,857,238 | | | | (10,735,735 | ) | | | 314,240,389 | | | | 41,067,445 | | | | 122,447,935 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in net assets resulting
from operations | | | 285,349,931 | | | | 4,117,123,819 | | | | 14,774,073 | | | | 346,946,961 | | | | 69,368,670 | | | | 120,663,530 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | |
Distributable earnings — Retail Shares | | | — | | | | (113,598,594 | ) | | | — | | | | (3,931,446 | ) | | | — | | | | (14,352 | ) |
Distributable earnings — Institutional Shares | | | — | | | | (109,111,985 | ) | | | — | | | | (6,234,860 | ) | | | — | | | | (410,918 | ) |
Distributable earnings — R6 Shares | | | — | | | | (16,031,154 | ) | | | — | | | | (7,346,888 | ) | | | — | | | | (166,468 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Decrease in net assets from distributions
to shareholders | | | — | | | | (238,741,733 | ) | | | — | | | | (17,513,194 | ) | | | — | | | | (591,738 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from the sale of shares — Retail Shares | | | 391,790,807 | | | | 559,092,962 | | | | 61,225,309 | | | | 68,880,699 | | | | 13,233,054 | | | | 26,213,357 | |
Proceeds from the sale of shares — Institutional Shares | | | 406,169,955 | | | | 697,543,901 | | | | 28,746,181 | | | | 36,766,653 | | | | 88,966,918 | | | | 128,712,041 | |
Proceeds from the sale of shares — R6 Shares | | | 14,440,945 | | | | 6,251,191 | | | | 123,398 | | | | 177,187 | | | | 5,235,956 | | | | 121,752,721 | |
Net asset value of shares issued in reinvestment of
distributions — Retail Shares | | | — | | | | 110,107,728 | | | | — | | | | 3,823,378 | | | | — | | | | 14,117 | |
Net asset value of shares issued in reinvestment of
distributions — Institutional Shares | | | — | | | | 99,938,937 | | | | — | | | | 6,174,515 | | | | — | | | | 387,973 | |
Net asset value of shares issues in reinvestment of
distribution — R6 Shares | | | — | | | | 16,031,154 | | | | — | | | | 7,346,888 | | | | — | | | | 166,468 | |
Cost of shares redeemed — Retail Shares | | | (556,962,351 | ) | | | (635,019,449 | ) | | | (45,016,326 | ) | | | (33,508,896 | ) | | | (12,801,958 | ) | | | (35,319,590 | ) |
Cost of shares redeemed — Institutional Shares | | | (519,917,170 | ) | | | (577,436,958 | ) | | | (32,891,737 | ) | | | (18,164,168 | ) | | | (28,272,156 | ) | | | (72,170,259 | ) |
Cost of shares redeemed — R6 Shares | | | (4,987,405 | ) | | | (6,621,282 | ) | | | (43,085 | ) | | | (593,258 | ) | | | (25,532,430 | ) | | | (1,181,130 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in net assets derived from capital share transactions | | | (269,465,219 | ) | | | 269,888,184 | | | | 12,143,740 | | | | 70,902,998 | | | | 40,829,384 | | | | 168,575,698 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | 15,884,712 | | | | 4,148,270,270 | | | | 26,917,813 | | | | 400,336,765 | | | | 110,198,054 | | | | 288,647,490 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 6,875,791,919 | | | | 2,727,521,649 | | | | 662,730,737 | | | | 262,393,972 | | | | 611,903,594 | | | | 323,256,104 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | $ | 6,891,676,631 | | | $ | 6,875,791,919 | | | $ | 689,648,550 | | | $ | 662,730,737 | | | $ | 722,101,648 | | | $ | 611,903,594 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions — Retail Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 2,264,753 | | | | 5,931,103 | | | | 1,338,219 | | | | 2,282,722 | | | | 390,925 | | | | 1,026,721 | |
Shares issued in reinvestment of distributions | | | — | | | | 820,300 | | | | — | | | | 104,562 | | | | — | | | | 535 | |
Shares redeemed | | | (3,295,373 | ) | | | (6,747,487 | ) | | | (1,004,613 | ) | | | (1,181,125 | ) | | | (378,133 | ) | | | (1,701,129 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (1,030,620 | ) | | | 3,916 | | | | 333,606 | | | | 1,206,159 | | | | 12,792 | | | | (673,873 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions — Institutional Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 2,291,692 | | | | 7,321,769 | | | | 621,699 | | | | 1,348,794 | | | | 2,579,286 | | | | 5,263,921 | |
Shares issued in reinvestment of distributions | | | — | | | | 722,357 | | | | — | | | | 164,862 | | | | — | | | | 12,924 | |
Shares redeemed | | | (2,960,797 | ) | | | (5,924,627 | ) | | | (721,052 | ) | | | (688,173 | ) | | | (825,917 | ) | | | (3,097,993 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (669,105 | ) | | | 2,119,499 | | | | (99,353 | ) | | | 825,483 | | | | 1,753,369 | | | | 2,178,852 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions — R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 85,971 | | | | 58,969 | | | | 2,728 | | | | 5,929 | | | | 154,931 | | | | 4,367,165 | |
Shares issued in reinvestment of distributions | | | — | | | | 115,970 | | | | — | | | | 196,053 | | | | — | | | | 5,507 | |
Shares redeemed | | | (27,902 | ) | | | (63,908 | ) | | | (938 | ) | | | (16,268 | ) | | | (739,705 | ) | | | (51,045 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 58,069 | | | | 111,031 | | | | 1,790 | | | | 185,714 | | | | (584,774 | ) | | | 4,321,627 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| 42 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Select Funds |
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Baron Real Estate Fund | | | Baron Emerging Markets Fund | | | Baron Global Advantage Fund | |
| | | For the Six
Months Ended
June 30,
2021 | | | For the Year
Ended
December 31,
2020 | | | For the Six
Months Ended
June 30,
2021 | | | For the Year
Ended
December 31,
2020 | | | For the Six
Months Ended
June 30,
2021 | | | For the Year
Ended
December 31,
2020 | |
Increase (Decrease) in Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (759,493 | ) | | $ | (1,330,058 | ) | | $ | 5,010,457 | | | $ | (11,245,374 | ) | | $ | (13,018,200 | ) | | $ | (11,670,593 | ) |
Net realized gain (loss) | | | 88,575,603 | | | | 86,875,385 | | | | 265,298,732 | | | | (122,586,984 | ) | | | 2,856,742 | | | | (17,863,779 | ) |
Change in net unrealized appreciation (depreciation) | | | 101,661,977 | | | | 192,254,003 | | | | 72,521,196 | | | | 1,515,047,228 | | | | 238,375,387 | | | | 789,015,734 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in net assets resulting
from operations | | | 189,478,087 | | | | 277,799,330 | | | | 342,830,385 | | | | 1,381,214,870 | | | | 228,213,929 | | | | 759,481,362 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | |
Distributable earnings — Retail Shares | | | — | | | | (18,956,421 | ) | | | — | | | | — | | | | — | | | | — | |
Distributable earnings — Institutional Shares | | | — | | | | (38,095,768 | ) | | | — | | | | — | | | | — | | | | — | |
Distributable earnings — R6 Shares | | | — | | | | (1,132,357 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Decrease in net assets from distributions
to shareholders | | | — | | | | (58,184,546 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from the sale of shares — Retail Shares | | | 151,766,835 | | | | 76,559,948 | | | | 68,544,988 | | | | 117,433,009 | | | | 201,134,030 | 1 | | | 734,007,575 | |
Proceeds from the sale of shares — Institutional Shares | | | 546,338,036 | | | | 305,064,177 | | | | 2,274,073,396 | | | | 2,105,946,178 | | | | 561,997,554 | 1 | | | 947,405,989 | |
Proceeds from the sale of shares — R6 Shares | | | 4,646,924 | | | | 1,798,452 | | | | 3,337,221 | | | | 4,215,704 | | | | 4,497,519 | 1 | | | 3,243,370 | |
Net asset value of shares issued in reinvestment of
distributions — Retail Shares | | | — | | | | 18,370,350 | | | | — | | | | — | | | | — | | | | — | |
Net asset value of shares issued in reinvestment of
distributions — Institutional Shares | | | — | | | | 33,950,936 | | | | — | | | | — | | | | — | | | | — | |
Net asset value of shares issues in reinvestment of
distribution — R6 Shares | | | — | | | | 1,132,357 | | | | — | | | | — | | | | — | | | | — | |
Cost of shares redeemed — Retail Shares | | | (48,088,908 | ) | | | (92,585,183 | ) | | | (67,974,766 | ) | | | (375,743,958 | ) | | | (229,420,457 | ) | | | (281,103,529 | ) |
Cost of shares redeemed — Institutional Shares | | | (107,464,852 | ) | | | (136,271,561 | ) | | | (687,914,633 | ) | | | (1,801,081,636 | ) | | | (276,495,861 | ) | | | (148,495,764 | ) |
Cost of shares redeemed — R6 Shares | | | (733,723 | ) | | | (734,891 | ) | | | (1,803,093 | ) | | | (3,576,131 | ) | | | (1,911,138 | ) | | | (1,115,476 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in net assets derived from capital share transactions | | | 546,464,312 | | | | 207,284,585 | | | | 1,588,263,113 | | | | 47,193,166 | | | | 259,801,647 | | | | 1,253,942,165 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | 735,942,399 | | | | 426,899,369 | | | | 1,931,093,498 | | | | 1,428,408,036 | | | | 488,015,576 | | | | 2,013,423,527 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 1,047,205,056 | | | | 620,305,687 | | | | 6,750,440,502 | | | | 5,322,032,466 | | | | 2,407,589,391 | | | | 394,165,864 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | $ | 1,783,147,455 | | | $ | 1,047,205,056 | | | $ | 8,681,534,000 | | | $ | 6,750,440,502 | | | $ | 2,895,604,967 | | | $ | 2,407,589,391 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions — Retail Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 3,851,128 | | | | 2,562,678 | | | | 3,465,968 | | | | 8,155,284 | | | | 3,682,632 | | | | 19,303,851 | |
Shares issued in reinvestment of distributions | | | — | | | | 570,441 | | | | — | | | | — | | | | — | | | | — | |
Shares redeemed | | | (1,217,751 | ) | | | (3,428,339 | ) | | | (3,445,599 | ) | | | (26,716,751 | ) | | | (4,395,557 | ) | | | (7,439,963 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 2,633,377 | | | | (295,220 | ) | | | 20,369 | | | | (18,561,467 | ) | | | (712,925 | ) | | | 11,863,888 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions — Institutional Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 13,504,678 | | | | 10,109,253 | | | | 115,378,739 | | | | 147,323,346 | | | | 10,237,682 | | | | 24,616,046 | |
Shares issued in reinvestment of distributions | | | — | | | | 1,028,877 | | | | — | | | | — | | | | — | | | | — | |
Shares redeemed | | | (2,642,616 | ) | | | (5,053,153 | ) | | | (34,609,075 | ) | | | (135,448,663 | ) | | | (5,196,667 | ) | | | (3,774,570 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 10,862,062 | | | | 6,084,977 | | | | 80,769,664 | | | | 11,874,683 | | | | 5,041,015 | | | | 20,841,476 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions — R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 114,700 | | | | 55,801 | | | | 167,520 | | | | 301,153 | | | | 79,293 | | | | 83,000 | |
Shares issued in reinvestment of distributions | | | — | | | | 34,393 | | | | — | | | | — | | | | — | | | | — | |
Shares redeemed | | | (18,597 | ) | | | (27,438 | ) | | | (90,882 | ) | | | (254,199 | ) | | | (34,416 | ) | | | (28,280 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 96,103 | | | | 62,756 | | | | 76,638 | | | | 46,954 | | | | 44,877 | | | | 54,720 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| See Notes to Financial Statements. | | 43 |
| | |
| Baron Select Funds | | June 30, 2021 |
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Baron Real Estate Income Fund | | | Baron Health Care Fund | | | Baron FinTech Fund | |
| | | For the Six
Months Ended
June 30,
2021 | | | For the Year
Ended
December 31,
2020 | | | For the Six
Months Ended
June 30,
2021 | | | For the Year
Ended
December 31,
2020 | | | For the Six
Months Ended
June 30,
2021 | | | For the Year
Ended
December 31,
20201 | |
Increase (Decrease) in Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 367,249 | | | $ | 163,815 | | | $ | (361,955 | ) | | $ | (119,599 | ) | | $ | (137,820 | ) | | $ | (76,110 | ) |
Net realized gain (loss) | | | 330,469 | | | | (29,010 | ) | | | (434,387 | ) | | | 1,452,827 | | | | 150,341 | | | | 57,599 | |
Change in net unrealized appreciation (depreciation) | | | 6,966,072 | | | | 1,540,261 | | | | 15,599,740 | | | | 12,943,885 | | | | 7,297,198 | | | | 5,602,515 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in net assets resulting
from operations | | | 7,663,790 | | | | 1,675,066 | | | | 14,803,398 | | | | 14,277,113 | | | | 7,309,719 | | | | 5,584,004 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | |
Distributable earnings — Retail Shares | | | (44,835 | ) | | | (17,635 | ) | | | — | | | | (218,706 | ) | | | — | | | | — | |
Distributable earnings — Institutional Shares | | | (244,433 | ) | | | (114,383 | ) | | | — | | | | (268,672 | ) | | | — | | | | — | |
Distributable earnings — R6 Shares | | | (3,341 | ) | | | (4,502 | ) | | | — | | | | (47,650 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Decrease in net assets from distributions
to shareholders | | | (292,609 | ) | | | (136,520 | ) | | | — | | | | (535,028 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions: | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from the sale of shares — Retail Shares | | | 9,939,339 | | | | 1,912,222 | | | | 22,453,886 | | | | 20,094,347 | | | | 2,362,316 | | | | 6,974,228 | |
Proceeds from the sale of shares — Institutional Shares | | | 24,757,567 | | | | 40,465,627 | | | | 72,048,123 | | | | 24,782,586 | | | | 19,434,636 | | | | 20,846,632 | |
Proceeds from the sale of shares — R6 Shares | | | 1,230 | | | | 39,480 | | | | 424,958 | | | | 1,969,884 | | | | 890,082 | | | | 2,752,319 | |
Net asset value of shares issued in reinvestment of
distributions — Retail Shares | | | 43,907 | | | | 17,368 | | | | — | | | | 215,430 | | | | — | | | | — | |
Net asset value of shares issued in reinvestment of
distributions — Institutional Shares | | | 243,378 | | | | 113,638 | | | | — | | | | 268,072 | | | | — | | | | — | |
Net asset value of shares issues in reinvestment of
distribution — R6 Shares | | | 3,341 | | | | 4,502 | | | | — | | | | 47,649 | | | | — | | | | — | |
Cost of shares redeemed — Retail Shares | | | (988,166 | ) | | | (827,453 | ) | | | (6,201,775 | ) | | | (4,152,506 | ) | | | (1,280,093 | ) | | | (1,776,462 | ) |
Cost of shares redeemed — Institutional Shares | | | (14,870,803 | ) | | | (710,995 | ) | | | (1,191,025 | ) | | | (1,938,250 | ) | | | (937,260 | ) | | | (288,432 | ) |
Cost of shares redeemed — R6 Shares | | | (3 | ) | | | (2,370 | ) | | | — | | | | (71,517 | ) | | | (5,000 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in net assets derived from capital
share transactions | | | 19,129,790 | | | | 41,012,019 | | | | 87,534,167 | | | | 41,215,695 | | | | 20,464,681 | | | | 28,508,285 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets | | | 26,500,971 | | | | 42,550,565 | | | | 102,337,565 | | | | 54,957,780 | | | | 27,774,400 | | | | 34,092,289 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 47,066,373 | | | | 4,515,808 | | | | 70,340,407 | | | | 15,382,627 | | | | 34,092,289 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
End of period | | $ | 73,567,344 | | | $ | 47,066,373 | | | $ | 172,677,972 | | | $ | 70,340,407 | | | $ | 61,866,689 | | | $ | 34,092,289 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions — Retail Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 636,062 | | | | 160,782 | | | | 1,128,950 | | | | 1,325,369 | | | | 156,914 | | | | 605,522 | |
Shares issued in reinvestment of distributions | | | 2,766 | | | | 1,486 | | | | — | | | | 12,657 | | | | — | | | | — | |
Shares redeemed | | | (63,044 | ) | | | (72,766 | ) | | | (317,806 | ) | | | (296,872 | ) | | | (85,529 | ) | | | (167,962 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 575,784 | | | | 89,502 | | | | 811,144 | | | | 1,041,154 | | | | 71,385 | | | | 437,560 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions — Institutional Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 1,574,448 | | | | 2,895,052 | | | | 3,671,823 | | | | 1,462,806 | | | | 1,264,590 | | | | 1,653,709 | |
Shares issued in reinvestment of distributions | | | 15,339 | | | | 8,609 | | | | — | | | | 15,649 | | | | — | | | | — | |
Shares redeemed | | | (1,007,223 | ) | | | (57,219 | ) | | | (60,588 | ) | | | (132,574 | ) | | | (61,653 | ) | | | (27,218 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 582,564 | | | | 2,846,442 | | | | 3,611,235 | | | | 1,345,881 | | | | 1,202,937 | | | | 1,626,491 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Capital share transactions — R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 78 | | | | 3,411 | | | | 20,772 | | | | 159,004 | | | | 57,934 | | | | 252,331 | |
Shares issued in reinvestment of distributions | | | 212 | | | | 392 | | | | — | | | | 2,782 | | | | — | | | | — | |
Shares redeemed | | | — | | | | (222 | ) | | | — | | | | (5,708 | ) | | | (322 | ) | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 290 | | | | 3,581 | | | | 20,772 | | | | 156,078 | | | | 57,612 | | | | 252,331 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | For the period January 2, 2020 (commencement of operations) to December 31, 2020. |
| | |
| 44 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Select Funds |
STATEMENT OF CASH FLOWS (Unaudited)
|
FOR THE SIX MONTHS ENDED JUNE 30, 2021 |
| | | | |
| | | Baron Partners
Fund | |
Increase (Decrease) in Cash: | | | | |
Cash Provided (Used) from Operating Activities | | | | |
Net increase in net assets resulting from operations | | $ | 285,349,931 | |
Adjustments to reconcile net increase (decease) in net assets resulting from operations to net cash provided (used) by operating activities: | | | | |
Purchases of portfolio securities | | | (273,708,495 | ) |
Proceeds from sales of portfolio securities | | | 387,288,552 | |
Net purchases, sales and maturities of short term investments | | | (4,893,675 | ) |
Decrease in dividends and interest receivable | | | 400,175 | |
Decrease in prepaid expenses | | | 264,168 | |
Increase in accrued expenses | | | 374,657 | |
Increase in net unrealized depreciation on unfunded commitments | | | 200,600 | |
Net realized gain on investments | | | (318,277,323 | ) |
Change in net unrealized appreciation of investments | | | (2,725,179 | ) |
| | | | |
Net cash provided (used) by operating activities | | $ | 74,273,411 | |
| | | | |
Cash Provided in Financing Activities | | | | |
Proceeds from shares sold | | | 825,803,913 | |
Payment for shares redeemed | | | (1,082,633,164 | ) |
Increase in payable for borrowings against line of credit | | | 182,500,000 | |
| | | | |
Net cash provided (used) in financing activities | | | (74,329,251 | ) |
| | | | |
Net increase in cash | | | (55,840 | ) |
Cash at beginning of period | | | 166,340 | |
| | | | |
Cash at end of period | | | 110,500 | |
| | | | |
Supplemental cash flow information: | | | | |
Interest paid | | $ | 1,366,065 | |
| | | | |
| | |
| See Notes to Financial Statements. | | 45 |
| | |
| Baron Select Funds | | June 30, 2021 |
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. ORGANIZATION
Baron Select Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company established as a Delaware statutory trust on April 30, 2003, and accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The Trust currently offers 11 series (individually, a “Fund” and collectively, the “Funds”): Baron Partners Fund, Baron Focused Growth Fund, Baron Real Estate Income Fund, Baron Health Care Fund, and Baron FinTech Fund, which are non-diversified; and Baron International Growth Fund, Baron Real Estate Fund, Baron Emerging Markets Fund, Baron Global Advantage Fund, Baron WealthBuilder Fund, and Baron New Asia Fund, which are diversified. Baron WealthBuilder Fund is presented in a separate report. Baron New Asia Fund commenced investment operations on July 30, 2021 and therefore, financial information is not included in this report. Each Fund’s investment objective is to seek capital appreciation and, for Baron Real Estate Income Fund only, current income. Baron Partners Fund may employ “leverage” by borrowing money and using it to purchase additional securities. Borrowing for investment increases both investment opportunity and investment risk. Baron International Growth Fund, Baron Emerging Markets Fund, Baron Global Advantage Fund, and Baron New Asia Fund invest their assets primarily in non-U.S. companies. Baron Real Estate Fund invests its assets primarily in U.S. and non-U.S. real estate and real estate-related companies. Baron Real Estate Income Fund invests its assets in U.S. and non-U.S. real estate income-producing securities and other real estate securities. Baron Health Care Fund invests its assets primarily in equity securities engaged in the research, development, production, sale, delivery or distribution of products and services related to the health care industry. Baron FinTech Fund invests its assets primarily in securities of companies that develop, use, or rely on innovative technologies or services, for banking, lending, capital markets, financial data analytics, insurance, payments, asset management, or wealth management.
Each Fund offers Retail Shares, Institutional Shares, and R6 Shares. Each class of shares differs only in its ongoing fees, expenses and eligibility requirements. Retail Shares are offered to all investors. Institutional Shares are for investments in the amount of $1 million or more per Fund. Institutional Shares are intended for certain financial intermediaries that offer shares of Baron Funds through fee-based platforms, retirement platforms, or other platforms. R6 Shares are for investments in the amount of $5 million or more per Fund. R6 Shares are available only to qualified 401(a) plans (including 401(k) plans, Keogh plans, profit sharing plans, money purchase pension plans, target benefit plans, defined benefit pension plans, and Taft-Hartley multi-employer pension plans), endowment funds and foundations, any state, county or city, or its instrumentality, department, authority, or agency, 457 plans, including 457(a) governmental entity plans and tax-exempt plans, accounts registered to insurance companies, trust companies and bank trust departments, investment companies, both affiliated and not affiliated with BAMCO, Inc. (the “Adviser”), and any entity that is considered a corporation for tax purposes, including corporate non-qualified deferred compensation plans of such corporations. Each class of shares has equal rights to earnings and assets, except that each class bears different expenses for distribution and shareholder servicing. Each Fund’s investment income, realized and unrealized gains or losses on investments and foreign currency, and expenses other than those attributable to a specific class are allocated to each class based on its relative net assets. Each class of shares has exclusive voting rights with respect to matters that affect just that class.
Baron Partners Fund was organized originally as a limited partnership in January 1992 under the laws of the State of Delaware. Effective as of the close of business on April 30, 2003, the predecessor partnership was reorganized into a series of the Trust. Baron Partners Fund commenced operations on April 30, 2003 with a contribution of assets and liabilities, including securities-in-kind, from the predecessor partnership.
Baron Focused Growth Fund was organized originally as a limited partnership in May 1996 under the laws of the State of Delaware. Effective as of the close of business on June 30, 2008, the predecessor partnership was reorganized into a series of the Trust. Baron Focused Growth Fund commenced operations on June 30, 2008 with a contribution of assets and liabilities, including securities-in-kind, from the predecessor partnership.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the period. Actual results could differ from those estimates. Events occurring subsequent to the date of the Statements of Assets and Liabilities and through the date of issuance of the financial statements have been evaluated for adjustment to or disclosure in the financial statements.
a) Security Valuation. The Funds’ share prices or net asset values (“NAV”) are calculated as of the scheduled close of the regular trading session (usually 4 p.m. E.T. or such other time as of which the Funds’ NAVs are calculated (the “NAV Calculation Time”)) on the New York Stock Exchange (the “Exchange”) on any day the Exchange is scheduled to be open. Portfolio securities traded on any national stock exchange are valued based on the last sale price on the exchange where such shares are principally traded. For securities traded on NASDAQ, the Funds use the NASDAQ Official Closing Price. If there are no sales on a given day, the value of the security may be the average of the most recent bid and asked quotations on such exchange or the last sale price from a prior day. Where market quotations are not readily available, or, if in the Adviser’s judgment, they do not accurately reflect the fair value of a security, or an event occurs after the market close but before the Funds are priced that materially affects the value of a security, the security will be valued by the Adviser using policies and procedures approved by the Board of Trustees (the “Board”). Some of the more common reasons that may necessitate that a security be valued using “fair value” pricing may include, but are not limited to: trading of the security has been halted or suspended; or the security has not been traded for an extended period of time. The Adviser has a Fair Valuation Committee (the “Committee”) comprised of senior management representatives and the Committee reports to the Board every quarter. Factors the Committee may consider when valuing a security include whether a current price is stale, there is recent news, the security is thinly traded, transactions are infrequent or quotations are genuine. There can be no guarantee, however, that a fair valuation used by the Funds on any given day will more accurately reflect the market value of an investment than the closing price of such investment in its market.
U.S. Government obligations, money market instruments, and other debt instruments held by the Funds with a remaining maturity of 60 days or less are generally valued at amortized cost, which approximates fair value. Debt instruments having a greater remaining maturity will be valued on the basis of prices obtained from a pricing service approved by the Board or at the mean of the bid and ask prices from the dealer maintaining an active market in that security. The value of the Funds’ investments in convertible bonds/convertible preferred stocks is determined primarily by obtaining valuations from independent pricing services based on readily available bid quotations or, if quotations are not available, by methods which include various considerations such as yields or prices of securities of comparable quality, coupon, maturity and type;
46
| | |
| June 30, 2021 | | Baron Select Funds |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
2. SIGNIFICANT ACCOUNTING POLICIES (Continued)
indications as to values from dealers; and general market conditions. Other inputs used by an independent pricing service to value convertible bonds/convertible preferred stocks generally include underlying stock data, conversion premiums, listed bond and preferred stock prices and other market information which may include benchmark curves, trade execution data, sensitivity analysis, when available, or an estimated value calculated based on the price of the underlying common share on the valuation date adjusted for accrued and unpaid dividends. Open-end investment companies, including securities lending collateral invested in registered investment company money market funds, are valued at their NAV each day.
Non-U.S. equity securities traded on foreign securities exchanges are generally valued using an independent pricing vendor that provides daily fair value adjustment factors based on information such as local closing price, relevant general and sector indexes, currency fluctuations, and depositary receipts, as applicable. Securities valued using such adjustment factors are classified as Level 2 in the fair value hierarchy. The models of the independent pricing vendor generate an adjustment factor for each security, which is applied to the local closing price to adjust it for post-closing market movements up to the time the Funds are valued and translated into U.S. dollars. If the vendor does not provide an adjustment factor for a security, the security is valued based on its most recent local closing price and translated into U. S. dollars. The Adviser may also fair value securities in other situations, for example, when a particular foreign market is closed but the Funds are open. Other mutual funds may adjust the prices of their securities by different amounts.
b) Securities Transactions, Investment Income and Expense Allocation. Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on an identified cost basis for financial reporting and federal income tax purposes. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis, which includes the accretion of discounts and amortization of premiums. Non-cash dividends received in the form of stock, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Certain dividends from foreign securities will be recorded as soon as the Funds are informed of the dividend if such information is obtained subsequent to the ex-dividend date. Distributions received from certain investments held by the Funds may be comprised of dividends, realized gains and returns of capital. The Funds originally estimate the expected classification of such payments. The amounts may subsequently be reclassified upon receipt of information from the issuer. The Funds are charged for those expenses of the Trust that are directly attributable to each Fund, such as advisory and custodian fees. Expenses that are not directly attributable to a Fund are typically allocated among the Funds in proportion to their respective net assets.
c) Single Issuer. Single issuer risk is the possibility that factors specific to an issuer to which a Fund is exposed will affect the market prices of the issuer’s securities and therefore the NAV of the Fund. Due to the size of Baron Partners Fund’s and Baron Focused Growth Fund’s investments in Tesla, Inc. (“Tesla”), 41% and 32%, respectively, of these Fund’s net assets as of June 30, 2021, the NAVs of the Funds will be materially impacted by the price of Tesla stock.
d) Non-Diversified Portfolio. Certain Funds are non-diversified, which means they will likely have a greater percentage of their assets in a single issuer than a diversified fund. As a result, a non-diversified Fund will likely invest a greater percentage of its assets in fewer issuers, and the performance of those issuers may have a greater effect on the Fund’s performance compared to a diversified fund. Thus, a non-diversified Fund is more likely to experience significant fluctuations in value, exposing the Fund to a greater risk of loss in any given period than a diversified fund. Additionally, non-diversified Funds may encounter difficulty liquidating securities.
e) Industry Concentration. From time to time, market fluctuations in the value of a Fund’s investments, combined with a Fund’s non-diversified portfolio, may result in a Fund being concentrated in the securities of a single issuer or a small number of issuers, in a particular industry. As a result, this Fund will be particularly exposed to the risks of that company or industry relative to the risk exposure of investment companies holding a diversified portfolio of securities or those that seek to maintain near-index weightings in their portfolio securities. Accordingly, in those cases, a Fund will be disproportionately exposed to the market conditions, interest rates, and economic, regulatory, or financial developments that significantly affect that company or industry. For example, due to the size of Baron Partners Fund’s and Baron Focused Growth Fund’s investments in Tesla, which represent about 41% and 32%, respectively, of these Funds’ net assets as of June 30, 2021, the Funds will be more adversely impacted by negative developments affecting the automotive and energy industries, as well as governmental environmental regulations.
f) Foreign Currency Translations. Values of assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the price of such currencies at the NAV Calculation Time. Purchases and sales of investments and dividend income are converted at the prevailing rate of exchange on the respective dates of such transactions. Net realized gain (loss) on foreign currency transactions includes gain (loss) arising from the fluctuation in the exchange rates between trade and settlement dates on security transactions and currency gain (loss) between the accrual and payment dates on dividends and foreign withholding taxes. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currency transactions on the Statements of Operations. The Funds may invest in foreign securities and foreign currency transactions that may involve risks not associated with domestic investments as a result of the level of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability, among others.
Pursuant to U.S. federal income tax regulations, gains and losses from certain foreign currency transactions and the foreign currency portion of gains and losses realized on sales and maturities of foreign denominated debt securities are generally treated as ordinary income for U.S. federal income tax purposes.
g) Securities Lending. The Funds may lend securities to certain brokers under the terms of a master netting agreement. Upon such loans, the Funds receive collateral which is maintained by the custodian. The Funds may pay fees to the custodian for administering the securities lending program. The Funds earn interest on such collateral and earn income in the form of negotiated lenders’ fees, both of which are included in securities lending income in the Statements of Operations. Securities loaned are required to be secured at all times by collateral equal to at least 102% of the market value of the securities loaned. Risks may arise upon entering into securities lending to the extent that the value of the collateral is less than the value of the securities loaned due to the changes in the value of collateral or the loaned securities. The collateral is marked-to-market daily and settled on the next business day. The Funds may receive collateral in the form of cash or other eligible securities, such as a letter of credit issued by a U.S. bank or securities issued or guaranteed by the U.S. government. Securities purchased with cash collateral are subject to the risks inherent in investing in these securities.
The Funds did not participate in securities lending activities during the six months ended June 30, 2021.
47
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| Baron Select Funds | | June 30, 2021 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
2. SIGNIFICANT ACCOUNTING POLICIES (Continued)
h) Repurchase Agreements. The Funds may invest in repurchase agreements, which are short term investments whereby the Funds acquire ownership of a debt security and the seller agrees to repurchase the security at a future date at a specified price. When entering into repurchase agreements, it is the Funds’ policy that their custodian take possession of the underlying collateral securities, the market value of which, at all times, equals at least 102% of the principal amount of the repurchase transaction. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market to ensure the adequacy of the collateral. If the seller defaults and the market value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Funds may be delayed or limited. The information required to be disclosed by FASB Accounting Standards Update No. 2011-11 for the Funds’ investments in repurchase agreements at June 30, 2021, including the fair value of the repurchase agreement and the amount of collateral, can be found in each respective Fund’s Statement of Net Assets.
i) Master Limited Partnerships. The Funds may invest in master limited partnerships (“MLPs”). MLPs are limited partnerships or limited liability companies, whose partnership units or limited liability interests are listed and traded on a U.S. securities exchange, and are treated as publicly traded partnerships for federal income tax purposes. To qualify to be treated as a partnership for tax purposes, an MLP must receive at least 90% of its income from qualifying sources as set forth in Section 7704(d) of the Internal Revenue Code of 1986, as amended. These qualifying sources include interest, dividend, real property rent, gain from sale or other disposition of real property and income from activities such as the exploration, development, mining, production, processing, refining, transportation, storage and marketing of mineral or natural resources.
j) Special purpose acquisition company. The Funds may acquire an interest in a special purpose acquisition company (“SPAC”) in an initial public offering (“IPO”), via a private placement or a secondary market transaction. A SPAC is typically a publicly traded company that raises investment capital via an IPO for the purpose of acquiring the equity securities of one or more existing companies via merger, combination, acquisition, or other similar transactions. To the extent the SPAC is invested in cash or similar securities, this may negatively affect a Fund’s performance if the Fund is invested in the SPAC during such period. There is no guarantee that the SPACs will complete an acquisition or that any acquisitions that are completed will be profitable. Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices. These transactions will require the approval of the respective shareholders and are subject to other customary closing conditions, including the receipt of certain regulatory approvals. If these conditions are not met, the SPAC’s acquisition may not close and, to the extent a Fund had committed to participate in a private placement (i.e., PIPE transaction), the Fund will no longer be obligated to fulfill its commitment.
k) Private investment in public equity. The Funds may acquire equity securities of an issuer that are issued through a private investment in public equity (“PIPE”) transaction, including through commitments to purchase securities on a when-issued basis. A Fund will generally earmark an amount of cash or high-quality securities equal to the amount of its commitment to purchase the when-issued securities. PIPE transactions typically involve the purchase of securities directly from a publicly traded company in a private placement transaction, including securities issued by a SPAC, typically at a discount to the market price of the company’s securities. There is a risk that if the market price of the securities drops below a set threshold, the company may have to issue additional stock at a significantly reduced price, which may dilute the value of a Fund’s investment. Shares in PIPEs generally are not registered with the SEC until after a certain time period from the date the private sale is completed. This restriction can last an uncertain amount of time and may be many months. Until the public registration process is completed, securities acquired via a PIPE are restricted as to resale and a Fund cannot freely trade the securities. Generally, such restrictions cause these securities to be illiquid during this time. PIPEs may contain provisions that the issuer will pay specified financial penalties to the holder if the issuer does not publicly register the restricted equity securities within a specified period of time, but there is no assurance that the restricted equity securities will be publicly registered, or that the registration will remain in effect.
Publicly traded securities acquired via a PIPE transaction are typically valued at a discount to the market price of an issuer’s common stock and classified as Level 2. Discounts are applied due to certain trading restrictions imposed or a lack of marketability preceding the conversion to publicly traded securities. The primary inputs used in determining the discount are the length of the lock-up time period and volatility of the underlying security.
As of June 30, 2021, certain Funds had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of the target companies. Unrealized appreciation (depreciation) on these commitments is separately presented in the Statements of Assets and Liabilities as unrealized appreciation (depreciation) on unfunded commitments, and in the Statements of Operations as change in unrealized appreciation (depreciation) on unfunded commitments.
l) Federal and Foreign Income Taxes. The Trust treats each Fund as a separate entity for federal income tax purposes. Each Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. None of the Funds will be subject to federal or state income taxes to the extent that they qualify as regulated investment companies and substantially all of their income is distributed.
The Funds may be subject to foreign taxes on income and gains on investments that are accrued based upon the Funds’ understanding of the tax rules and regulations that exist in the countries in which the Funds invest. Foreign governments may also impose taxes or other payments on investments with respect to foreign securities. Such taxes are accrued as applicable.
m) Restricted Securities. The Funds may invest in securities that are restricted as to public sale in accordance with the Securities Act of 1933. Such assets are valued by the Adviser pursuant to policies and procedures approved by the Board.
n) Distributions to Shareholders. Income and capital gain distributions to shareholders are determined in accordance with income tax regulations which may differ from GAAP. These differences are primarily due to differing treatments for net investment loss, foreign currency gains and losses, non-deductible interest expense, reclassification of distributions, partnership basis adjustments, income from passive foreign investment companies, late-year loss deferral, post-October loss deferral, and wash sale loss deferral.
48
| | |
| June 30, 2021 | | Baron Select Funds |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
2. SIGNIFICANT ACCOUNTING POLICIES (Continued)
o) Commitments and Contingencies. In the normal course of business, the Funds may enter into contracts and agreements that contain a variety of representations and warranties, which provide general indemnification. The maximum exposure to the Funds under these agreements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.
p) Cash and Cash Equivalents. The Funds consider all short term liquid investments with a maturity of three months or less when purchased to be cash equivalents.
3. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities, other than short term securities, for the six months ended June 30, 2021 were as follows:
| | | | | | | | |
| | |
| Fund | | Purchases | | | Sales | |
Baron Partners Fund | | $ | 273,151,764 | | | $ | 384,726,186 | |
Baron Focused Growth Fund | | | 86,623,236 | | | | 54,485,040 | |
Baron International Growth Fund | | | 115,848,543 | | | | 89,618,291 | |
Baron Real Estate Fund | | | 936,764,719 | | | | 383,167,611 | |
Baron Emerging Markets Fund | | | 2,261,401,838 | | | | 1,095,868,711 | |
Baron Global Advantage Fund | | | 444,880,905 | | | | 219,791,694 | |
Baron Real Estate Income Fund | | | 40,346,559 | | | | 22,388,471 | |
Baron Health Care Fund | | | 114,754,137 | | | | 35,176,136 | |
Baron FinTech Fund | | | 19,034,465 | | | | 496,232 | |
4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
a) Investment Advisory Fees. The Adviser, a wholly owned subsidiary of Baron Capital Group, Inc. (“BCG”), serves as investment adviser to the Funds. As compensation for services rendered, the Adviser receives a fee payable monthly from Baron Partners Fund, Baron Focused Growth Fund, Baron Real Estate Fund, and Baron Emerging Markets Fund equal to 1% per annum of the average daily net assets of the respective Fund. The Adviser receives a fee payable monthly from Baron International Growth Fund, Baron Global Advantage Fund, Baron Real Estate Income Fund, Baron Health Care Fund, and Baron FinTech Fund equal to 0.88%, 0.85%, 0.75%, 0.75% and 0.80%, respectively, per annum of the average daily net assets of the respective Fund. The Adviser has contractually agreed to reduce its fee or reimburse Fund expenses to the extent required to limit the net annual operating expense ratio (excluding portfolio transaction costs, interest, dividend and extraordinary expenses), as follows:
| | | | | | | | | | | | |
| |
| | | Annual Operating
Expense Ratio Cap | |
| | | |
| Fund | | Retail
Shares | | | Institutional
Shares | | | R6
Shares | |
Baron Partners Fund | | | 1.45 | % | | | 1.20 | % | | | 1.20 | % |
Baron Focused Growth Fund | | | 1.35 | % | | | 1.10 | % | | | 1.10 | % |
Baron International Growth Fund | | | 1.20 | % | | | 0.95 | % | | | 0.95 | % |
Baron Real Estate Fund | | | 1.35 | % | | | 1.10 | % | | | 1.10 | % |
Baron Emerging Markets Fund | | | 1.50 | % | | | 1.25 | % | | | 1.25 | % |
Baron Global Advantage Fund | | | 1.15 | % | | | 0.90 | % | | | 0.90 | % |
Baron Real Estate Income Fund | | | 1.05 | % | | | 0.80 | % | | | 0.80 | % |
Baron Health Care Fund | | | 1.10 | % | | | 0.85 | % | | | 0.85 | % |
Baron FinTech Fund | | | 1.20 | % | | | 0.95 | % | | | 0.95 | % |
b) Distribution Fees. Baron Capital, Inc. (“BCI”), a wholly owned subsidiary of BCG, is a registered limited purpose broker-dealer and the distributor of the Funds’ shares. The Funds are authorized to pay BCI a distribution fee payable monthly pursuant to a distribution plan under Rule 12b-1 of the 1940 Act equal to 0.25% per annum of the Retail Shares’ average daily net assets of the respective Funds.
c) Trustee Fees. Certain Trustees of the Trust are interested persons (as defined by the 1940 Act) of the Trust. None of these Trustees received compensation for his or her services as a Trustee of the Trust. None of the Funds’ officers received compensation from the Funds for their services as an officer.
d) Fund Accounting and Administration Fees. The Funds have entered into an agreement with State Street Bank and Trust Company (“State Street”) to perform accounting and certain administrative services. State Street is compensated for fund accounting services based on a percentage of the Funds’ net assets, plus fixed annual fees for the administrative services.
e) Cross Trades. The Funds are permitted to purchase securities from, or sell securities to, other Funds within the Trust, the funds in Baron Investment Funds Trust and other entities advised or subadvised by the Adviser, pursuant to “Cross-Trading Procedures” adopted by the Board. These procedures have been designed to ensure that any cross-trade of securities by the respective Baron Fund from or to another fund/other entity that is or could be considered an affiliate of a Fund under certain limited
49
| | |
| Baron Select Funds | | June 30, 2021 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (Continued)
circumstances by virtue of having a common investment adviser, common officers, or common trustees complies with Rule 17a-7 under the 1940 Act. Further, as defined under these procedures, each cross-trade is effected at the current market price and with no commissions. Pursuant to these procedures, for the six months ended June 30, 2021, the Funds engaged in the following cross-trades:
| | | | | | | | | | | | |
| | | |
| | | Purchases | | | Sales | | | Net Realized
Gains (Losses) | |
Baron International Growth Fund | | $ | 760,400 | | | $ | — | | | $ | — | |
Baron Real Estate Fund | | | 655,481 | | | | — | | | | — | |
Baron Global Advantage Fund | | | 4,305,233 | | | | — | | | | — | |
Baron Health Care Fund | | | 985,200 | | | | — | | | | — | |
f) Voluntary Payment. The Adviser made a voluntary payment to Baron Global Advantage Fund in the amount of $162,286 to compensate the Fund for a loss incurred due to a pricing error. The impact of this payment increased the Fund’s total return by less than 0.01%.
5. LINE OF CREDIT
Baron Partners Fund participates in a committed syndicated line of credit agreement with State Street in the amount of $1 billion. Depending on the outstanding loan amount, a commitment fee of 0.15% or 0.25% per annum is incurred on the unused portion of the line of credit. The line of credit is used for investment purposes and expires on October 29, 2021. Baron Partners Fund may borrow up to the lesser of $1 billion or the maximum amount Baron Partners Fund may borrow under the 1940 Act, the limitations included in Baron Partners Fund’s prospectus, or any limit or restriction under any law or regulation to which Baron Partners Fund is subject or any agreement to which Baron Partners Fund is a party. Interest is charged to Baron Partners Fund, based on its borrowings, at a rate per annum equal to the higher of the Effective Federal Funds Rate or the one month LIBOR rate plus a margin of 0.85%. An upfront fee of 0.05% is incurred on the commitment amount. For the six months ended June��30, 2021, interest expense incurred on these loans amounted to $1,308,309. During the six months ended June 30, 2021, Baron Partners Fund had an average daily balance on the line of credit of $272.8 million at a weighted average interest rate of 0.97%. At June 30, 2021, Baron Partners Fund had an outstanding balance in the amount of $561,500,000.
The Funds (except Baron Partners Fund), together with the funds in Baron Investment Funds Trust, participate in a committed line of credit agreement with State Street to be used for temporary purposes, primarily for financing redemptions. Each fund may borrow up to the lesser of $200 million or the maximum amount each fund may borrow under the 1940 Act, the limitations included in each fund’s prospectus, or any limit or restriction under any law or regulation to which each fund is subject or any agreement to which each fund is a party; provided that the aggregate outstanding principal amount of all loans to any of the funds may not exceed $200 million. Interest is charged to each fund, based on its borrowings, at a rate per annum equal to the higher of the Overnight Bank Funding Rate plus 0.10% or the Overnight Federal Funds Rate plus 0.10%; plus a margin of 1.00%. An upfront fee of 0.05% is incurred on the commitment amount and a commitment fee of 0.20% per annum is incurred on the unused portion of the line of credit. Both fees are allocated to the participating funds based on their relative net assets. During the six months ended June 30, 2021, Baron Global Advantage Fund and Baron Real Estate Income Fund had borrowings under the line of credit and incurred interest expense of $816, and $1,343 respectively. For the 2 days during which there were borrowings, Baron Global Advantage Fund had an average daily balance on the line of credit of $12.5 million at a weighted average interest rate of 1.20%. For the 10 days during which there were borrowings, Baron Real Estate Income Fund had an average daily balance on the line of credit of $4.0 million at a weighted average interest rate of 1.22%.
6. RESTRICTED SECURITIES
At June 30, 2021, investments in securities included securities that are restricted and/or illiquid. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale and are valued pursuant to the policies and procedures for fair value pricing approved by the Board. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Funds may receive more or less than this valuation in an actual sale and that difference could be material. At June 30, 2021, the Funds held investments in restricted and/or illiquid securities that were valued pursuant to policies and procedures for fair value pricing as follows:
| | | | | | | | |
| |
| | | Baron Partners Fund | |
| | |
| Name of Issuer | | Acquisition Date(s) | | | Value | |
Private Common Stocks | | | | | | | | |
Space Exploration Technologies Corp. | | | 9/13/2017 | | | $ | 100,305,096 | |
| | |
Private Convertible Preferred Stocks | | | | | | | | |
Northvolt AB | | | 5/19/2021 | | | | 7,305,856 | |
| | |
Private Preferred Stocks | | | | | | | | |
Space Exploration Technologies Corp. | | | 11/15/2017-8/4/2020 | | | | 220,593,389 | |
| | | | | | | | |
| | |
Total Restricted Securities: | | | | | | $ | 328,204,341 | |
| | | | | | | | |
(Cost $136,093,628)† (4.76% of Net Assets) | | | | | | | | |
| † | See Statements of Net Assets for cost of individual securities. |
50
| | |
| June 30, 2021 | | Baron Select Funds |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
6. RESTRICTED SECURITIES (Continued)
| | | | | | | | |
| |
| | | Baron Focused Growth Fund | |
| | |
| Name of Issuer | | Acquisition Date(s) | | | Value | |
Private Common Stocks | | | | | | | | |
Space Exploration Technologies Corp. | | | 9/13/2017 | | | $ | 9,440,194 | |
| | |
Private Preferred Stocks | | | | | | | | |
Space Exploration Technologies Corp. | | | 11/15/2017-8/4/2020 | | | | 16,077,363 | |
| | | | | | | | |
| | |
Total Restricted Securities: | | | | | | $ | 25,517,557 | |
| | | | | | | | |
(Cost $9,949,836 )† (3.70% of Net Assets) | | | | | | | | |
| |
| | | Baron International Growth Fund | |
| | |
| Name of Issuer | | Acquisition Date(s) | | | Value | |
Common Stocks | | | | | | | | |
Taboola.com Ltd. | | | 4/30/2021 | | | $ | 2,290,500 | |
| | | | | | | | |
(Cost $2,295,090 ) (0.32% of Net Assets) | | | | | | | | |
| |
| | | Baron Real Estate Fund | |
| | |
| Name of Issuer | | Acquisition Date(s) | | | Value | |
Common Stocks | | | | | | | | |
Janus International Group, Inc. | | | 4/30/2021 | | | $ | 13,760,000 | |
| | | | | | | | |
(Cost $10,000,000) (0.77% of Net Assets) | | | | | | | | |
| |
| | | Baron Emerging Markets Fund | |
| | |
| Name of Issuer | | Acquisition Date(s) | | | Value | |
Common Stocks | | | | | | | | |
DD3 Acquisition Corp. II | | | 12/10/2020 | | | $ | 265,445 | |
| | |
Private Common Stocks | | | | | | | | |
Pine Labs PTE. Ltd. | | | 5/17/2021 | | | | 39,183,289 | |
| | |
Private Convertible Preferred Stocks | | | | | | | | |
Think & Learn Private Limited | | | 3/31/2021 | | | | 47,710,808 | |
| | | | | | | | |
| | |
Total Restricted Securities: | | | | | | $ | 87,159,542 | |
| | | | | | | | |
(Cost $90,041,252)† (1.00 % of Net Assets) | | | | | | | | |
| |
| | | Baron Global Advantage Fund | |
| | |
| Name of Issuer | | Acquisition Date(s) | | | Value | |
Common Stocks | | | | | | | | |
DD3 Acquisition Corp. II | | | 12/10/2020 | | | $ | 9,549,262 | |
Taboola.com Ltd. | | | 4/30/2021 | | | | 13,238,370 | |
| | |
Private Common Stocks | | | | | | | | |
Space Exploration Technologies Corp. | | | 3/25/2021 | | | | 9,482,809 | |
| | |
Private Convertible Preferred Stocks | | | | | | | | |
Farmers Business Network, Inc. | | | 7/31/2020 | | | | 9,371,586 | |
Resident Home, Inc. | | | 12/3/2020 | | | | 4,593,439 | |
Rivian Automotive, Inc. | | | 7/10/2020-1/19/2021 | | | | 23,947,229 | |
Think & Learn Private Limited | | | 3/31/2021 | | | | 28,628,352 | |
Zymergen, Inc. | | | 7/29/2020 | | | | 3,775,031 | |
| | |
Private Preferred Stocks | | | | | | | | |
GM Cruise Holdings LLC | | | 1/19/2021 | | | | 12,267,316 | |
| | |
Warrants | | | | | | | | |
DD3 Acquisition Corp. II | | | 12/10/2020 | | | | 727,129 | |
| | | | | | | | |
| | |
Total Restricted Securities: | | | | | | $ | 115,580,523 | |
| | | | | | | | |
(Cost $103,827,083)† (3.99 % of Net Assets) | | | | | | | | |
| † | See Statements of Net Assets for cost of individual securities. |
51
| | |
| Baron Select Funds | | June 30, 2021 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
7. FAIR VALUE MEASUREMENTS
Fair value is defined by GAAP as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. GAAP provides a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable or unobservable. Observable inputs are based on market data obtained from sources independent of the Funds. Unobservable inputs are inputs that reflect the Funds’ own assumptions based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
| | • | | Level 1 — quoted prices in active markets for identical assets or liabilities; |
| | • | | Level 2 — prices determined using other inputs that are observable either directly, or indirectly through corroboration with observable market data (which could include quoted prices for similar assets or liabilities, interest rates, credit risk, etc.); |
| | • | | Level 3 — prices determined using unobservable inputs when quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an asset or liability (unobservable inputs reflect each Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available). |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk or liquidity associated with investing in those securities. For example, non-U.S. securities, with markets that close hours before the Funds value their holdings, may require revised valuations to more accurately reflect their fair value. Since these values obtained from quoted prices in an active market are adjusted, such securities are reflected as Level 2.
The Funds have procedures to determine the fair value of securities and other financial instruments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Funds primarily employ a market-based approach that may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine its fair value. The Funds may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
The following is a summary of the inputs used as of June 30, 2021 in valuing the Funds’ investments carried at fair value:
| | | | | | | | | | | | | | | | |
| |
| | | Baron Partners Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | | | Other
Observable
Inputs
(Level 2) | | | Unobservable
Inputs
(Level 3) | | | Total | |
Common Stocks† | | $ | 6,955,984,548 | | | $ | 164,114,333 | | | $ | — | | | $ | 7,120,098,881 | |
Private Common Stocks | | | — | | | | — | | | | 100,305,096 | | | | 100,305,096 | |
Private Convertible Preferred Stocks | | | — | | | | — | | | | 7,305,856 | | | | 7,305,856 | |
Private Preferred Stocks | | | — | | | | — | | | | 220,593,389 | | | | 220,593,389 | |
Short Term Investments | | | — | | | | 4,893,675 | | | | — | | | | 4,893,675 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 6,955,984,548 | | | $ | 169,008,008 | | | $ | 328,204,341 | | | $ | 7,453,196,897 | |
| | | | | | | | | | | | | | | | |
Unrealized appreciation (depreciation) on unfunded commitments | | $ | — | | | $ | — | | | $ | (200,600 | ) | | $ | (200,600 | ) |
| | | | | | | | | | | | | | | | |
| |
| | | Baron Focused Growth Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | | | Other
Observable
Inputs
(Level 2) | | | Unobservable
Inputs
(Level 3) | | | Total | |
Common Stocks† | | $ | 616,718,457 | | | $ | 14,355,937 | | | $ | — | | | $ | 631,074,394 | |
Private Common Stocks | | | — | | | | — | | | | 9,440,194 | | | | 9,440,194 | |
Private Preferred Stocks | | | — | | | | — | | | | 16,077,363 | | | | 16,077,363 | |
Short Term Investments | | | — | | | | 32,549,272 | | | | — | | | | 32,549,272 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 616,718,457 | | | $ | 46,905,209 | | | $ | 25,517,557 | | | $ | 689,141,223 | |
| | | | | | | | | | | | | | | | |
Unrealized appreciation (depreciation) on unfunded commitments | | $ | — | | | $ | — | | | $ | 154,900 | | | $ | 154,900 | |
| | | | | | | | | | | | | | | | |
| † | See Schedules of Investments for additional detailed categorizations. |
52
| | |
| June 30, 2021 | | Baron Select Funds |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
7. FAIR VALUE MEASUREMENTS (Continued)
| | | | | | | | | | | | | | | | |
| |
| | | Baron International Growth Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | | | Other
Observable
Inputs
(Level 2) | | | Unobservable
Inputs
(Level 3) | | | Total | |
Common Stocks† | | $ | 277,093,004 | | | $ | 409,461,978 | | | $ | 2,290,500 | | | $ | 688,845,482 | |
Warrants | | | 175,909 | | | | — | | | | — | | | | 175,909 | |
Convertible Bonds | | | — | | | | 425,977 | | | | — | | | | 425,977 | |
Short Term Investments | | | — | | | | 33,446,185 | | | | — | | | | 33,446,185 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 277,268,913 | | | $ | 443,334,140 | | | $ | 2,290,500 | | | $ | 722,893,553 | |
| | | | | | | | | | | | | | | | |
Unrealized appreciation (depreciation) on unfunded commitments | | $ | — | | | $ | — | | | $ | (451,750 | ) | | $ | (451,750 | ) |
| | | | | | | | | | | | | | | | |
| |
| | | Baron Real Estate Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | | | Other
Observable
Inputs
(Level 2) | | | Unobservable
Inputs
(Level 3) | | | Total | |
Common Stocks† | | $ | 1,676,483,883 | | | $ | 51,421,896 | | | $ | 13,760,000 | | | $ | 1,741,665,779 | |
Short Term Investments | | | — | | | | 57,298,915 | | | | — | | | | 57,298,915 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 1,676,483,883 | | | $ | 108,720,811 | | | $ | 13,760,000 | | | $ | 1,798,964,694 | |
| | | | | | | | | | | | | | | | |
Unrealized appreciation (depreciation) on unfunded commitments | | $ | — | | | $ | — | | | $ | (197,400 | ) | | $ | (197,400 | ) |
| | | | | | | | | | | | | | | | |
| |
| | | Baron Emerging Markets Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | | | Other
Observable
Inputs
(Level 2) | | | Unobservable
Inputs
(Level 3) | | | Total | |
Common Stocks† | | $ | 2,862,420,078 | | | $ | 5,258,625,606 | | | $ | 265,445 | | | $ | 8,121,311,129 | |
Private Common Stocks | | | — | | | | — | | | | 39,183,289 | | | | 39,183,289 | |
Private Convertible Preferred Stocks | | | — | | | | — | | | | 47,710,808 | | | | 47,710,808 | |
Short Term Investments | | | — | | | | 498,116,757 | | | | — | | | | 498,116,757 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 2,862,420,078 | | | $ | 5,756,742,363 | | | $ | 87,159,542 | | | $ | 8,706,321,983 | |
| | | | | | | | | | | | | | | | |
Unrealized appreciation (depreciation) on unfunded commitments | | $ | — | | | $ | — | | | $ | 2,073,174 | | | $ | 2,073,174 | |
| | | | | | | | | | | | | | | | |
| |
| | | Baron Global Advantage Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | | | Other
Observable
Inputs
(Level 2) | | | Unobservable
Inputs
(Level 3) | | | Total | |
Common Stocks† | | $ | 2,524,652,924 | | | $ | 163,412,631 | | | $ | 22,787,632 | | | $ | 2,710,853,187 | |
Private Common Stocks | | | — | | | | — | | | | 9,482,809 | | | | 9,482,809 | |
Private Convertible Preferred Stocks† | | | — | | | | — | | | | 70,315,637 | | | | 70,315,637 | |
Private Preferred Stocks | | | — | | | | — | | | | 12,267,316 | | | | 12,267,316 | |
Warrants† | | | 709,119 | | | | — | | | | 727,129 | | | | 1,436,248 | |
Short Term Investments | | | — | | | | 82,971,185 | | | | — | | | | 82,971,185 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 2,525,362,043 | | | $ | 246,383,816 | | | $ | 115,580,523 | | | $ | 2,887,326,382 | |
| | | | | | | | | | | | | | | | |
Unrealized appreciation (depreciation) on unfunded commitments | | $ | — | | | $ | — | | | $ | 430,146 | | | $ | 430,146 | |
| | | | | | | | | | | | | | | | |
| † | See Schedules of Investments for additional detailed categorizations. |
53
| | |
| Baron Select Funds | | June 30, 2021 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
7. FAIR VALUE MEASUREMENTS (Continued)
| | | | | | | | | | | | | | | | |
| |
| | | Baron Real Estate Income Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | | | Other
Observable
Inputs
(Level 2) | | | Unobservable
Inputs
(Level 3) | | | Total | |
Common Stocks† | | $ | 71,486,792 | | | $ | — | | | $ | — | | | $ | 71,486,792 | |
Short Term Investments | | | — | | | | 1,954,026 | | | | — | | | | 1,954,026 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 71,486,792 | | | $ | 1,954,026 | | | $ | — | | | $ | 73,440,818 | |
| | | | | | | | | | | | | | | | |
| |
| | | Baron Health Care Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | | | Other
Observable
Inputs
(Level 2) | | | Unobservable
Inputs
(Level 3) | | | Total | |
Common Stocks† | | $ | 158,297,754 | | | $ | — | | | $ | — | | | $ | 158,297,754 | |
Short Term Investments | | | — | | | | 15,423,432 | | | | — | | | | 15,423,432 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 158,297,754 | | | $ | 15,423,432 | | | $ | — | | | $ | 173,721,186 | |
| | | | | | | | | | | | | | | | |
| |
| | | Baron FinTech Fund | |
| | | | |
| Description | | Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) | | | Other
Observable
Inputs
(Level 2) | | | Unobservable
Inputs
(Level 3) | | | Total | |
Common Stocks† | | $ | 55,303,185 | | | $ | 3,456,624 | | | $ | — | | | $ | 58,759,809 | |
Short Term Investments | | | — | | | | 6,338,710 | | | | — | | | | 6,338,710 | |
| | | | | | | | | | | | | | | | |
Total Investments | | $ | 55,303,185 | | | $ | 9,795,334 | | | $ | — | | | $ | 65,098,519 | |
| | | | | | | | | | | | | | | | |
Unrealized appreciation (depreciation) on unfunded commitments | | $ | — | | | $ | — | | | $ | (8,208 | ) | | $ | (8,208 | ) |
| | | | | | | | | | | | | | | | |
| † | See Schedules of Investments for additional detailed categorizations. |
The following is a reconciliation of investments in which unobservable inputs (Level 3) were used in determining fair value:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Baron Partners Fund | | | | |
| | | | | | | | | | |
Investments in
Securities | | Balance as of
December 31,
2020 | | | Accrued
Premiums/
Discounts | | | Net
Realized
Gain
(Loss) | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Purchases | | | Sales | | | Transfers
Into
Level 3 | | | Transfers
Out of
Level 3 | | | Balance as of
June 30,
2021 | | | Change in Net
Unrealized
Appreciation
(Depreciation)
from Investments
still held at
June 30,
2021 | |
Private Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | $ | 68,936,929 | | | $ | — | | | $ | — | | | $ | 31,368,167 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 100,305,096 | | | $ | 31,368,167 | |
Private Convertible Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | | — | | | | — | | | | — | | | | (537,765 | ) | | | 7,843,621 | | | | — | | | | — | | | | — | | | | 7,305,856 | | | | (537,765 | ) |
Private Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | | 151,607,760 | | | | — | | | | — | | | | 68,985,629 | | | | — | | | | — | | | | — | | | | — | | | | 220,593,389 | | | | 68,985,629 | |
Private Partnerships | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financials | | | 197,815 | | | | — | | | | 647,600 | | | | (197,815 | ) | | | — | | | | (647,600 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 220,742,504 | | | $ | — | | | $ | 647,600 | | | $ | 99,618,216 | | | $ | 7,843,621 | | | $ | (647,600 | ) | | $ | — | | | $ | — | | | $ | 328,204,341 | | | $ | 99,816,031 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unfunded commitments | | $ | — | | | $ | — | | | $ | — | | | $ | (200,600 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (200,600 | ) | | $ | (200,600 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
54
| | |
| June 30, 2021 | | Baron Select Funds |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
7. FAIR VALUE MEASUREMENTS (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Baron Focused Growth Fund | | | | |
| | | | | | | | | | |
Investments in
Securities | | Balance as of
December 31,
2020 | | | Accrued
Premiums/
Discounts | | | Net
Realized
Gain (Loss) | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Purchases | | | Sales | | | Transfers
Into
Level 3 | | | Transfers
Out of
Level 3 | | | Balance as of
June 30,
2021 | | | Change in Net
Unrealized
Appreciation
(Depreciation)
from Investments
still held at
June 30,
2021 | |
Private Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | $ | 6,487,985 | | | $ | — | | | $ | — | | | $ | 2,952,209 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 9,440,194 | | | $ | 2,952,209 | |
Private Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | | 11,049,529 | | | | — | | | | — | | | | 5,027,834 | | | | — | | | | — | | | | — | | | | — | | | | 16,077,363 | | | | 5,027,834 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 17,537,514 | | | $ | — | | | $ | — | | | $ | 7,980,043 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 25,517,557 | | | $ | 7,980,043 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unfunded commitments | | $ | — | | | $ | — | | | $ | — | | | $ | 154,900 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 154,900 | | | $ | 154,900 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Baron International Growth Fund | |
| | | | | | | | | | |
Investments in
Securities | | Balance as of
December 31,
2020 | | | Accrued
Premiums/
Discounts | | | Net
Realized
Gain (Loss) | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Purchases | | | Sales | | | Transfers
Into
Level 3 | | | Transfers
Out of
Level 3 | | | Balance as of
June 30,
2021 | | | Change in Net
Unrealized
Appreciation
(Depreciation)
from Investments
still held at
June 30,
2021 | |
Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Communication Services | | $ | — | | | $ | — | | | $ | — | | | $ | (4,590 | ) | | $ | 2,295,090 | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,290,500 | | | $ | (4,590 | ) |
Information Technology | | | 40,431 | | | | — | | | | 484,260 | | | | (40,431 | ) | | | — | | | | (484,260 | ) | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 40,431 | | | $ | — | | | $ | 484,260 | | | $ | (45,021 | ) | | $ | 2,295,090 | | | $ | (484,260 | ) | | $ | — | | | $ | — | | | $ | 2,290,500 | | | $ | (4,590 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unfunded commitments | | $ | — | | | $ | — | | | $ | — | | | $ | (451,750 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (451,750 | ) | | $ | (451,750 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Baron Real Estate Fund | |
| | | | | | | | | | |
| Investments in Securities | | Balance as of
December 31,
2020 | | | Accrued
Premiums/
Discounts | | | Net
Realized
Gain (Loss) | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Purchases | | | Sales | | | Transfers
Into
Level 3 | | | Transfers
Out of
Level 3 | | | Balance as of
June 30,
2021 | | | Change in Net
Unrealized
Appreciation
(Depreciation)
from Investments
still held at
June 30,
2021 | |
Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | $ | — | | | $ | — | | | $ | — | | | $ | 3,760,000 | | | $ | 10,000,000 | | | $ | — | | | $ | — | | | $ | — | | | $ | 13,760,000 | | | $ | 3,760,000 | |
Real Estate1 | | | 31,679,993 | | | | — | | | | 5,409,871 | | | | 4,233,945 | | | | — | | | | (8,109,871 | ) | | | — | | | | (33,213,938 | ) | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 31,679,993 | | | $ | — | | | $ | 5,409,871 | | | $ | 7,993,945 | | | $ | 10,000,000 | | | $ | (8,109,871 | ) | | $ | — | | | $ | (33,213,938 | ) | | $ | 13,760,000 | | | $ | 3,760,000 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unfunded commitments | | $ | — | | | $ | — | | | $ | — | | | $ | (197,400 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (197,400 | ) | | $ | (197,400 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | Opendoor Technologies, Inc. restriction on resale was lifted on March 12, 2021. |
55
| | |
| Baron Select Funds | | June 30, 2021 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
7. FAIR VALUE MEASUREMENTS (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Baron Emerging Markets Fund | |
| | | | | | | | | | |
Investments in
Securities | | Balance as of
December 31,
2020 | | | Accrued
Premiums/
Discounts | | | Net
Realized
Gain
(Loss) | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Purchases | | | Sales | | | Transfers
Into Level 3 | | | Transfers
Out of
Level 3 | | | Balance as of
June 30,
2021 | | | Change in Net
Unrealized
Appreciation
(Depreciation)
from Investments
still held at
June 30,
2021 | |
Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special Purpose Acquisition Company | | $ | 274,196 | | | $ | — | | | $ | — | | | $ | (8,751 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 265,445 | | | $ | (8,751 | ) |
Private Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | | — | | | | — | | | | — | | | | (2,065,264 | ) | | | 49,776,072 | | | | — | | | | — | | | | — | | | | 47,710,808 | | | | (2,065,264 | ) |
Private Convertible Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | | — | | | | — | | | | — | | | | (816,711 | ) | | | 40,000,000 | | | | — | | | | — | | | | — | | | | 39,183,289 | | | | (816,711 | ) |
Warrants | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special Purpose Acquisition Company | | | 3,529,767 | | | | — | | | | (3,116 | ) | | | (3,526,651 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 3,803,963 | | | $ | — | | | $ | (3,116 | ) | | $ | (6,417,377 | ) | | $ | 89,776,072 | | | $ | — | | | $ | — | | | $ | — | | | $ | 87,159,542 | | | $ | (2,890,726 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unfunded commitments | | $ | — | | | $ | — | | | $ | — | | | $ | 2,073,174 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 2,073,174 | | | $ | 2,073,174 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Baron Global Advantage Fund | |
| | | | | | | | | | |
Investments in
Securities | | Balance as of
December 31,
2020 | | | Accrued
Premiums/
Discounts | | | Net
Realized
Gain
(Loss) | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Purchases | | | Sales | | | Transfers
Into Level 3 | | | Transfers
Out of
Level 3 | | | Balance as of
June 30,
2021 | | | Change in Net
Unrealized
Appreciation
(Depreciation)
from Investments
still held at
June 30,
2021 | |
Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Communication Services | | $ | — | | | $ | — | | | $ | — | | | $ | (26,530 | ) | | $ | 13,264,900 | | | $ | — | | | $ | — | | | $ | — | | | $ | 13,238,370 | | | $ | (26,530 | ) |
Real Estate1 | | | 63,354,190 | | | | — | | | | — | | | | 17,673,274 | | | | — | | | | — | | | | — | | | | (81,027,464 | ) | | | — | | | | — | |
Special Purpose Acquisition Company | | | 89,462 | | | | — | | | | — | | | | (1,008,885 | ) | | | — | | | | — | | | | 10,468,685 | 2 | | | — | | | | 9,549,262 | | | | (1,008,885 | ) |
Private Common Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | | — | | | | — | | | | — | | | | (517,153 | ) | | | 9,999,962 | | | | — | | | | — | | | | — | | | | 9,482,809 | | | | (517,153 | ) |
Private Convertible Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer Discretionary | | | 15,229,412 | | | | — | | | | — | | | | 5,572,009 | | | | 36,367,599 | | | | — | | | | — | | | | — | | | | 57,169,020 | | | | 5,572,009 | |
Materials | | | 9,866,626 | | | | — | | | | — | | | | 3,279,991 | | | | — | | | | — | | | | — | | | | — | | | | 13,146,617 | | | | 3,279,991 | |
Private Preferred Stocks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Industrials | | | — | | | | — | | | | — | | | | 119,861 | | | | 12,147,455 | | | | — | | | | — | | | | — | | | | 12,267,316 | | | | 119,861 | |
Warrants | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Special Purpose Acquisition Company | | | 1,151,593 | | | | — | | | | (1,017 | ) | | | (1,269,080 | ) | | | — | | | | — | | | | 845,633 | 2 | | | — | | | | 727,129 | | | | (1,269,080 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 89,691,283 | | | $ | — | | | $ | (1,017 | ) | | $ | 23,823,487 | | | $ | 71,779,916 | | | $ | — | | | $ | 11,314,318 | | | $ | (81,027,464 | ) | | $ | 115,580,523 | | | $ | 6,150,213 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unfunded commitments | | $ | — | | | $ | — | | | $ | — | | | $ | 430,146 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 430,146 | | | $ | 430,146 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | Opendoor Technologies, Inc. restriction on resale was lifted on March 12, 2021. |
| 2 | DD3 Common Stocks and Warrants became restricted on June 11, 2021. |
56
| | |
| June 30, 2021 | | Baron Select Funds |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
7. FAIR VALUE MEASUREMENTS (Continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Baron FinTech Fund | |
| | | | | | | | | | |
Investments in
Securities | | Balance as of
December 31,
2020 | | | Accrued
Premiums/
Discounts | | | Net
Realized
Gain
(Loss) | | | Change in Net
Unrealized
Appreciation
(Depreciation | | | Purchases | | | Sales | | | Transfers
Into
Level 3 | | | Transfers
Out of
Level 3 | | | Balance as of
June 30,
2021 | | | Change in Net
Unrealized
Appreciation
(Depreciation)
from Investments
still held at
June 30, 2021 | |
| | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unfunded commitments | | $ | — | | | $ | — | | | $ | — | | | $ | (8,208 | ) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | (8,208 | ) | | $ | (8,208 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unobservable valuation inputs developed by the Adviser for significant (greater than 1% of net assets) Level 3 investments as of June 30, 2021 were as follows:
| | | | | | | | | | | | |
|
| Baron Partners Fund |
| | | | | | |
| Sector | | Company | | Fair Value as of
June 30, 2021 | | Valuation Technique | | Unobservable Input | | Weighted Average
used on
June 30, 2021 | | Range used on
June 30, 2021 |
Private Common Stocks and Private Preferred Stocks:
Industrials | | Space Exploration
Technologies Corp. | | $320,898,485* | | Combination of
recent transaction,
current value via
comparable companies,
and option-pricing
methods | | Change in the composite
equity index of comparable
companies | | (0.21)% | | (5.10)% - 1.61% |
| | Discount for lack of
marketability | | 4.01% | | 4.01% |
| | Estimated volatility of the
returns of equity(1) | | 35.11% | | 20.28% - 44.57% |
| | | | | | | | | | | | |
|
Baron Focused Growth Fund |
| | | | | | |
| Sector | | Company | | Fair Value as of
June 30, 2021 | | Valuation Technique | | Unobservable Input | | Weighted Average
used on
June 30, 2021 | | Range used on
June 30, 2021 |
Private Common Stocks and Private Preferred Stocks:
Industrials | | Space Exploration
Technologies Corp. | | $25,517,557* | | Combination of recent
transaction, current
value via comparable
companies, and option-
pricing methods | | Change in the composite
equity index of comparable
companies | | (0.21)% | | (5.10)% - 1.61% |
| | Discount for lack of
marketability | | 4.01% | | 4.01% |
| | Estimated volatility of the
returns of equity(1) | | 35.11% | | 20.28% - 44.57% |
| (1) | The volatility was calculated as a simple-average of the volatilities of the individual comparable companies. |
| * | The fair value as of June 30, 2021 includes a third party transaction price. |
8. INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS
Federal income tax regulations differ from GAAP. Therefore, distributions determined in accordance with tax regulations may differ in amount or character from net investment income and net realized gain for financial reporting purposes. Net investment income (loss) and net realized and unrealized gain (loss) differ for financial statement and tax purposes due to differing treatments of net investment loss, foreign currency gains and losses, non-deductible interest expense, reclassification of distributions, partnership basis adjustments, income from passive foreign investment companies, late year loss deferral, post-October loss deferral and wash sale loss deferral. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences.
57
| | |
| Baron Select Funds | | June 30, 2021 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
8. INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS (Continued)
As of June 30, 2021, the components of net assets on a tax basis were as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | Baron
Partners Fund | | | Baron
Focused
Growth
Fund | | | Baron
International
Growth
Fund | | | Baron Real
Estate Fund | | | Baron
Emerging
Markets Fund | |
Cost of investments | | $ | 1,883,234,137 | | | $ | 241,011,045 | | | $ | 486,291,549 | | | $ | 1,281,101,691 | | | $ | 5,974,624,773 | |
| | | | | | | | | | | | | | | | | | | | |
Gross tax unrealized appreciation | | | 5,584,799,202 | | | | 450,752,379 | | | | 243,462,659 | | | | 521,239,512 | | | | 2,830,541,905 | |
Gross tax unrealized depreciation | | | (14,836,442 | ) | | | (2,622,201 | ) | | | (6,860,655 | ) | | | (3,376,509 | ) | | | (98,844,695 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net tax unrealized appreciation (depreciation) | | | 5,569,962,760 | | | | 448,130,178 | | | | 236,602,004 | | | | 517,863,003 | | | | 2,731,697,210 | |
Net tax unrealized currency appreciation (depreciation) | | | — | | | | — | | | | (1,483,466 | ) | | | — | | | | (41,305,721 | ) |
Net unrealized appreciation (depreciation) on unfunded commitments | | | (200,600 | ) | | | 154,900 | | | | (451,750 | ) | | | (197,400 | ) | | | 2,073,174 | |
Undistributed (accumulated) ordinary income (loss) | | | (36,180,208 | ) | | | (3,611,136 | ) | | | 1,394,870 | | | | (759,492 | ) | | | 5,020,223 | |
Undistributed (accumulated) net realized gain (loss) | | | 633,983,584 | | | | 51,360,776 | | | | 13,519,707 | | | | 127,963,794 | | | | (253,394,417 | ) |
Paid-in capital | | | 724,111,095 | | | | 193,613,832 | | | | 472,520,283 | | | | 1,138,277,550 | | | | 6,237,443,531 | |
| | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 6,891,676,631 | | | $ | 689,648,550 | | | $ | 722,101,648 | | | $ | 1,783,147,455 | | | $ | 8,681,534,000 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | Baron Global
Advantage
Fund | | | Baron Real
Estate Income
Fund | | | Baron Health
Care Fund | | | Baron
FinTech
Fund | |
Cost of investments | | $ | 1,782,553,666 | | | $ | 64,031,507 | | | $ | 142,394,137 | | | $ | 52,190,512 | |
| | | | | | | | | | | | | | | | |
Gross tax unrealized appreciation | | | 1,130,682,243 | | | | 9,494,185 | | | | 31,333,825 | | | | 13,150,468 | |
Gross tax unrealized depreciation | | | (25,909,527 | ) | | | (84,874 | ) | | | (6,776 | ) | | | (242,461 | ) |
| | | | | | | | | | | | | | | | |
Net tax unrealized appreciation (depreciation) | | | 1,104,772,716 | | | | 9,409,311 | | | | 31,327,049 | | | | 12,908,007 | |
Net tax unrealized currency appreciation (depreciation) | | | (569,649 | ) | | | — | | | | 195 | | | | (86 | ) |
Net unrealized appreciation (depreciation) on unfunded commitments | | | 430,146 | | | | — | | | | — | | | | (8,208 | ) |
Undistributed (accumulated) ordinary income (loss) | | | (16,368,134 | ) | | | 104,774 | | | | (437,153 | ) | | | (137,820 | ) |
Undistributed (accumulated) net realized gain (loss) | | | (27,952,619 | ) | | | 72,049 | | | | 364,836 | | | | 139,466 | |
Paid-in capital | | | 1,835,292,507 | | | | 63,981,210 | | | | 141,423,045 | | | | 48,965,330 | |
| | | | | | | | | | | | | | | | |
Net Assets | | $ | 2,895,604,967 | | | $ | 73,567,344 | | | $ | 172,677,972 | | | $ | 61,866,689 | |
| | | | | | | | | | | | | | | | |
As of December 31, 2020, the Funds had capital loss carryforwards expiring as follows:
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | Baron
Partners
Fund | | | Baron
Focused
Growth Fund | | | Baron International
Growth Fund | | | Baron Real
Estate Fund | | | Baron
Emerging
Markets Fund | |
Short term: | | | | | | | | | | | | | | | | | | | | |
No expiration date | | $ | — | | | $ | | | | $ | 11,630,957 | | | $ | — | | | $ | 166,852,641 | |
| | | | | | | | | | | | | | | | | | | | |
Long term: | | | | | | | | | | | | | | | | | |
No expiration date | | $ | — | | | $ | | | | $ | — | | | $ | — | | | $ | 312,078,849 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | Baron Global
Advantage
Fund | | | Baron Real
Estate
Income Fund | | | Baron Health
Care
Fund | | | Baron
FinTech
Fund | |
Short term: | | | | | | | | | | | | | | | | |
No expiration date | | $ | 30,576,285 | | | $ | 228,185 | 1 | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
Long term: | | | | | | | | | | | | | |
No expiration date | | $ | 382,453 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | |
| 1 | Future utilization of losses may be subject to limitations under current tax laws. |
58
| | |
| June 30, 2021 | | Baron Select Funds |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
8. INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS (Continued)
The tax character of distributions paid during the six months ended June 30, 2021 and for the year ended December 31, 2020 was as follows:
| | | | | | | | | | | | | | | | |
| | |
| | | Six Months Ended June 30, 2021 | | | Year Ended December 31, 2020 | |
| | | | |
| Fund | | Ordinary1 | | | Long Term
Capital Gain | | | Ordinary1 | | | Long Term
Capital Gain | |
Baron Partners Fund | | $ | — | | | $ | — | | | $ | — | | | $ | 238,741,733 | |
Baron Focused Growth Fund | | | — | | | | — | | | | — | | | | 17,513,194 | |
Baron International Growth Fund | | | — | | | | — | | | | 591,738 | | | | — | |
Baron Real Estate Fund | | | — | | | | — | | | | 8,814,350 | | | | 49,370,196 | |
Baron Emerging Markets Fund | | | — | | | | — | | | | — | | | | — | |
Baron Global Advantage Fund | | | — | | | | — | | | | — | | | | — | |
Baron Real Estate Income Fund | | | 292,609 | | | | — | | | | 136,520 | | | | — | |
Baron Health Care Fund | | | — | | | | — | | | | 535,028 | | | | — | |
Baron FinTech Fund | | | — | | | | — | | | | — | | | | — | |
| 1 | For tax purposes, short-term capital gains are considered ordinary income distributions. |
The Funds follow the provisions of FASB Codification Section 740 (“ASC Section 740”) “Accounting for Uncertainty in Income Taxes” which clarifies the accounting for uncertainty in tax positions taken or expected to be taken on a tax return. ASC Section 740 sets forth a threshold for financial statement recognition, measurement and disclosure of tax positions taken or expected to be taken on a tax return. The Funds are required to recognize the tax effects of certain tax positions under a “more likely than not” standard, that based on their technical merits, have more than 50% likelihood of being sustained upon examination. Management has analyzed the tax positions taken on the Funds’ federal income tax returns for all open years (current and prior three years), and has concluded that no provision for federal income tax is required in the Funds’ financial statements. At June 30, 2021, the Funds did not have any uncertain tax benefits that require recognition, de-recognition or disclosure. The Funds’ federal, state and local income and federal excise tax returns for which the applicable statutes of limitations have not expired (current and prior three years) are subject to examination by the Internal Revenue Service and state departments of revenue.
9. OWNERSHIP CONCENTRATION
As of June 30, 2021, the officers, trustees and portfolio managers owned, directly or indirectly, 64.59% of Baron Focused Growth Fund, 10.07% of Baron Health Care Fund, and 19.52% of Baron FinTech Fund. As a result of their ownership, these investors may be able to materially affect the outcome of matters presented to Baron Focused Growth Fund, Baron Health Care Fund, and Baron FinTech Fund shareholders.
10. TRANSACTIONS IN “AFFILIATED” COMPANIES1
Baron Real Estate Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| Name of issuer | | Value at
December 31,
2020 | | | Purchase
Cost | | | Sales
Proceeds | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Realized
Gains/ (Losses) | | | Dividend
Income | | | Shares
Held at
June 30,
2021 | | | Value at
June 30,
2021 | | | % of Net
Assets at
June 30,
2021 | |
“Affiliated” Company as of June 30, 2021: | | | | | | | | | | | | | | | | | | | | | |
Fifth Wall Acquisition Corp. I | | $ | — | | | $ | 28,607,896 | | | $ | — | | | $ | 6,294,659 | | | $ | — | | | $ | — | | | | 2,835,301 | | | $ | 34,902,555 | | | | 1.96 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
No longer an “Affiliated” Company as of June 30, 2021: | | | | | | | | | | | | | | | | | | | | | |
RXR Acquisition Corp. | | $ | — | | | $ | 19,655,540 | | | $ | 6,664,668 | | | $ | (51,622 | ) | | $ | (85,332 | ) | | $ | — | | | | 1,290,554 | | | $ | 12,853,918 | | | | 0.72 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | An “Affiliated” company (“affiliated person” as defined in the 1940 Act) is a company in which a Fund held 5% or more of the company’s outstanding voting securities at any time during the six months ended June 30, 2021. |
59
| | |
| Baron Select Funds | | June 30, 2021 |
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
10. TRANSACTIONS IN “AFFILIATED” COMPANIES1 (Continued)
Baron Global Advantage Fund
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| Name of issuer | | Value at
December 31,
2020 | | | Purchase
Cost/ Transfer In | | | Sales
Proceeds/ Transfer
Out | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Realized
Gains/ (Losses) | | | Dividend
Income | | | Shares
Held at
June 30,
2021 | | | Value at
June 30,
2021 | | | % of Net
Assets at
June 30,
2021 | |
“Affiliated” Company as of June 30, 2021: | | | | | | | | | | | | | | | | | | | | | |
DD3 Acquisition Corp. II Common Stocks | | $ | — | | | $ | 10,468,685 | | | $ | — | | | $ | (1,006,030 | ) | | $ | — | | | $ | — | | | | 996,069 | | | $ | 9,462,655 | | | | 0.33 | % |
DD3 Acquisition Corp. II Forward Shares | | | 257,209 | | | | — | | | | — | | | | (257,209 | ) | | | — | | | | — | | | | — | | | | — | | | | 0.00 | % |
DD3 Acquisition Corp. II Founders Shares | | | 894,384 | | | | — | | | | — | | | | (893,367 | ) | | | (1,017 | ) | | | — | | | | — | | | | — | | | | 0.00 | % |
DD3 Acquisition Corp. II Private Units | | | 89,462 | | | | — | | | | — | | | | (2,855 | ) | | | — | | | | — | | | | 8,652 | | | | 86,607 | | | | 0.00 | % |
DD3 Acquisition Corp. II Units2 | | | 10,458,725 | | | | — | | | | 11,314,318 | | | | 855,593 | | | | — | | | | — | | | | — | | | | — | | | | 0.00 | % |
DD3 Acquisition Corp. II, Warrants Exp 12/10/2027 | | | — | | | | 845,633 | | | | — | | | | (118,504 | ) | | | — | | | | — | | | | 498,034 | | | | 727,129 | | | | 0.03 | % |
Sarissa Capital Acquisition Corp. | | | 15,908,693 | | | | — | | | | — | | | | (343,568 | ) | | | — | | | | — | | | | 1,493,774 | | | | 15,565,125 | | | | 0.54 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 27,608,473 | | | $ | 11,314,318 | | | $ | 11,314,318 | | | $ | (1,765,940 | ) | | $ | (1,017 | ) | | $ | — | | | | | | | $ | 25,841,516 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | An “Affiliated” company (“affiliated person” as defined in the 1940 Act) is a company in which a Fund held 5% or more of the company’s outstanding voting securities at any time during the six months ended June 30, 2021. |
| 2 | Separation of Units to Common Stocks and Warrants on January 28, 2021. |
11. COVID-19 RISK
The coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses taken by many governments or voluntarily imposed by private parties, including closing borders, restricting travel and imposing prolonged quarantines or similar restrictions, as well as the closure of, or operational changes to, many retail and other businesses, have had negative impacts, and general uncertainty on markets worldwide. It is not known how long such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may impact your Fund investment.
12. EXECUTIVE ORDER ON SECURITIES INVESTMENTS THAT FINANCE COMMUNIST CHINESE MILITARY COMPANIES
On November 12, 2020, the President of the United States issued an Executive Order (the “Order”) to prohibit, beginning January 11, 2021, U.S. persons (which includes the Funds) from transacting in certain securities and derivatives of publicly traded securities of any of 31 companies designated as a “Communist Chinese military company” (collectively with securities of certain subsidiaries of such companies and related depositary receipts that may be covered by the Order, “CCMC Securities”) by the U.S. Department of Defense (the “DOD”) or the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), unless such transactions are for purposes of divestment and occur through November 11, 2021. In the weeks following the issuance of the Order, the DOD designated an additional 13 companies as CCMCs, bringing the current total to 44 companies designated to date. Also subsequent to issuance of the Order, OFAC extended the effective date of the trading ban from January 11, 2021 to January 28, 2021. In addition, U.S. persons also are prohibited from transacting in newly designated CCMC Securities 60 days after such designation. As clarified by an amendment to the Order dated January 13, 2021, and subsequent guidance from OFAC, U.S. persons may divest their holdings in the 31 CCMCs initially designated at any time through November 11, 2021 (and have 365 days from date of designation to divest their holdings in other CCMCs).
OFAC subsequently published, on several occasions, guidance regarding compliance with the Order, including several “Frequently Asked Questions” (FAQs) style publications addressing the scope of, and interpretive matters regarding, compliance with the Order, as well as the Order’s application to U.S. funds that hold CCMC Securities (i.e., including mutual funds that hold CCMC Securities regardless of the size of the position relative to a fund’s total assets). Certain interpretive issues related to compliance with the Order remain open, including to what extent a U.S. person could be held liable for failing to identify an unlisted entity whose name “close matches the name” of an entity designated as a Communist Chinese military company.
A Fund’s holdings in CCMC Securities may adversely impact the Fund’s performance. The extent of any impact will depend on future developments, including a Fund’s ability to sell the CCMC Securities, valuation of the CCMC Securities, modifications to the Order, the issuance of additional or different interpretive guidance regarding compliance with the Order, and the duration of the Order, all of which are highly uncertain. Fund management will continue to monitor developments relating to the Order.
During the six months ended June 30, 2021, none of the Funds owned any CCMC Securities.
60
| | |
| June 30, 2021 | | Baron Select Funds |
FINANCIAL HIGHLIGHTS
BARON PARTNERS FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | Supplemental
Data: | |
| | | | | | | | | | | | | | | |
| | | Net asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($) | | | Net realized and
unrealized
gain (loss) on
investments
($) | | | Total from
investment
operations
($) | | | Net
investment
income
($) | | | Net realized
gain on
investments
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%) | | | Total
expenses
(%) | | | Less:
interest
expense
(%) | | |
Operating
expenses
(%) | | | Net
investment
income
(loss)
(%) | | | Net assets (in
millions), end of period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | |
2021 | | | 164.18 | | | | (0.98 | )1 | | | 8.03 | | | | 7.05 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 171.23 | | | | 4.29 | 2 | | | 1.36 | 3 | | | (0.04 | )3 | | | 1.32 | 3 | | | (1.16 | )3 | | | 3,181.1 | | | | 3.79 | 2 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | |
2020 | | | 69.04 | | | | (1.12 | )1 | | | 102.29 | | | | 101.17 | | | | 0.00 | | | | (6.03 | ) | | | (6.03 | ) | | | 164.18 | | | | 148.56 | | | | 1.56 | | | | (0.25 | ) | | | 1.31 | | | | (1.18 | ) | | | 3,219.4 | | | | 10.70 | |
| | | | | | | | | | | | | | | |
2019 | | | 47.77 | | | | (0.75 | )1 | | | 22.20 | | | | 21.45 | | | | 0.00 | | | | (0.18 | ) | | | (0.18 | ) | | | 69.04 | | | | 44.97 | | | | 2.22 | | | | (0.90 | ) | | | 1.32 | | | | (1.29 | ) | | | 1,353.6 | | | | 7.97 | |
| | | | | | | | | | | | | | | |
2018 | | | 48.75 | | | | (0.61 | )1 | | | (0.37 | ) | | | (0.98 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 47.77 | | | | (2.01 | ) | | | 2.03 | | | | (0.71 | ) | | | 1.32 | | | | (1.13 | ) | | | 1,016.2 | | | | 8.09 | |
| | | | | | | | | | | | | | | |
2017 | | | 37.06 | | | | (0.38 | )1 | | | 12.07 | | | | 11.69 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 48.75 | | | | 31.54 | | | | 1.79 | | | | (0.45 | ) | | | 1.34 | | | | (0.84 | ) | | | 1,101.7 | | | | 26.19 | |
| | | | | | | | | | | | | | | |
2016 | | | 35.62 | | | | (0.11 | )1 | | | 1.55 | | | | 1.44 | | �� | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 37.06 | | | | 4.04 | | | | 1.78 | | | | (0.43 | ) | | | 1.35 | | | | (0.31 | ) | | | 913.9 | | | | 15.59 | |
| | | | | | | | | | | | | | | |
2015 | | | 36.74 | | | | (0.05 | )1 | | | (0.95 | ) | | | (1.00 | ) | | | (0.12 | ) | | | 0.00 | | | | (0.12 | ) | | | 35.62 | | | | (2.71 | ) | | | 1.52 | | | | (0.20 | ) | | | 1.32 | | | | (0.13 | ) | | | 1,107.5 | | | | 17.08 | |
| | | | | | | | | | | | | | | |
2014 | | | 33.32 | | | | 0.23 | 1 | | | 3.19 | | | | 3.42 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 36.74 | | | | 10.26 | | | | 1.51 | | | | (0.19 | ) | | | 1.32 | | | | 0.66 | | | | 1,256.3 | | | | 30.82 | |
| | | | | | | | | | | | | | | |
2013 | | | 22.56 | | | | (0.19 | )1 | | | 10.95 | | | | 10.76 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 33.32 | | | | 47.69 | | | | 1.67 | | | | (0.29 | ) | | | 1.38 | | | | (0.66 | ) | | | 1,125.6 | | | | 18.57 | |
| | | | | | | | | | | | | | | |
2012 | | | 19.39 | | | | (0.04 | )1 | | | 3.21 | | | | 3.17 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 22.56 | | | | 16.35 | | | | 1.74 | | | | (0.34 | ) | | | 1.40 | | | | (0.18 | ) | | | 653.7 | | | | 13.04 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | |
2021 | | | 169.04 | | | | (0.78 | )1 | | | 8.27 | | | | 7.49 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 176.53 | | | | 4.43 | 2 | | | 1.10 | 3 | | | (0.04 | )3 | | | 1.06 | 3 | | | (0.90 | )3 | | | 3,214.7 | | | | 3.79 | 2 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | |
2020 | | | 70.82 | | | | (0.92 | )1 | | | 105.17 | | | | 104.25 | | | | 0.00 | | | | (6.03 | ) | | | (6.03 | ) | | | 169.04 | | | | 149.18 | | | | 1.30 | | | | (0.25 | ) | | | 1.05 | | | | (0.93 | ) | | | 3,191.4 | | | | 10.70 | |
| | | | | | | | | | | | | | | |
2019 | | | 48.86 | | | | (0.62 | )1 | | | 22.76 | | | | 22.14 | | | | 0.00 | | | | (0.18 | ) | | | (0.18 | ) | | | 70.82 | | | | 45.38 | | | | 1.96 | | | | (0.90 | ) | | | 1.06 | | | | (1.03 | ) | | | 1,187.0 | | | | 7.97 | |
| | | | | | | | | | | | | | | |
2018 | | | 49.73 | | | | (0.49 | )1 | | | (0.38 | ) | | | (0.87 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 48.86 | | | | (1.75 | ) | | | 1.77 | | | | (0.71 | ) | | | 1.06 | | | | (0.88 | ) | | | 815.6 | | | | 8.09 | |
| | | | | | | | | | | | | | | |
2017 | | | 37.70 | | | | (0.27 | )1 | | | 12.30 | | | | 12.03 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 49.73 | | | | 31.91 | | | | 1.53 | | | | (0.45 | ) | | | 1.08 | | | | (0.58 | ) | | | 854.9 | | | | 26.19 | |
| | | | | | | | | | | | | | | |
2016 | | | 36.15 | | | | (0.02 | )1 | | | 1.57 | | | | 1.55 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 37.70 | | | | 4.29 | | | | 1.52 | | | | (0.43 | ) | | | 1.09 | | | | (0.05 | ) | | | 645.3 | | | | 15.59 | |
| | | | | | | | | | | | | | | |
2015 | | | 37.28 | | | | 0.04 | 1 | | | (0.95 | ) | | | (0.91 | ) | | | (0.22 | ) | | | 0.00 | | | | (0.22 | ) | | | 36.15 | | | | (2.43 | ) | | | 1.26 | | | | (0.20 | ) | | | 1.06 | | | | 0.11 | | | | 793.3 | | | | 17.08 | |
| | | | | | | | | | | | | | | |
2014 | | | 33.72 | | | | 0.25 | 1 | | | 3.31 | | | | 3.56 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 37.28 | | | | 10.56 | | | | 1.26 | | | | (0.20 | ) | | | 1.06 | | | | 0.69 | | | | 681.5 | | | | 30.82 | |
| | | | | | | | | | | | | | | |
2013 | | | 22.78 | | | | (0.12 | )1 | | | 11.06 | | | | 10.94 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 33.72 | | | | 48.02 | | | | 1.41 | | | | (0.30 | ) | | | 1.11 | | | | (0.41 | ) | | | 349.0 | | | | 18.57 | |
| | | | | | | | | | | | | | | |
2012 | | | 19.52 | | | | 0.04 | 1 | | | 3.22 | | | | 3.26 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 22.78 | | | | 16.70 | | | | 1.48 | | | | (0.35 | ) | | | 1.13 | | | | 0.18 | | | | 146.5 | | | | 13.04 | |
|
R6 SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | |
2021 | | | 169.03 | | | | (0.78 | )1 | | | 8.27 | | | | 7.49 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 176.52 | | | | 4.43 | 2 | | | 1.10 | 3 | | | (0.04 | )3 | | | 1.06 | 3 | | | (0.90 | )3 | | | 495.9 | | | | 3.79 | 2 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | |
2020 | | | 70.82 | | | | (0.91 | )1 | | | 105.15 | | | | 104.24 | | | | 0.00 | | | | (6.03 | ) | | | (6.03 | ) | | | 169.03 | | | | 149.16 | | | | 1.30 | | | | (0.25 | ) | | | 1.05 | | | | (0.93 | ) | | | 465.0 | | | | 10.70 | |
| | | | | | | | | | | | | | | |
2019 | | | 48.86 | | | | (0.62 | )1 | | | 22.76 | | | | 22.14 | | | | 0.00 | | | | (0.18 | ) | | | (0.18 | ) | | | 70.82 | | | | 45.38 | | | | 1.96 | | | | (0.90 | ) | | | 1.06 | | | | (1.03 | ) | | | 186.9 | | | | 7.97 | |
| | | | | | | | | | | | | | | |
2018 | | | 49.73 | | | | (0.46 | )1 | | | (0.41 | ) | | | (0.87 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 48.86 | | | | (1.75 | ) | | | 1.79 | | | | (0.73 | ) | | | 1.06 | | | | (0.82 | ) | | | 123.4 | | | | 8.09 | |
| | | | | | | | | | | | | | | |
2017 | | | 37.71 | | | | (0.26 | )1 | | | 12.28 | | | | 12.02 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 49.73 | | | | 31.88 | | | | 1.52 | | | | (0.45 | ) | | | 1.07 | | | | (0.55 | ) | | | 15.5 | | | | 26.19 | |
| | | | | | | | | | | | | | | |
2016 4 | | | 38.61 | | | | (0.01 | )1 | | | (0.89 | ) | | | (0.90 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 37.71 | | | | (2.33 | )2 | | | 1.62 | 3 | | | (0.53 | )3 | | | 1.09 | 3 | | | (0.04 | )3 | | | 8.3 | | | | 15.59 | |
| 1 | Based on average shares outstanding. |
| 4 | For the period August 31, 2016 (initial offering of R6 Shares) to December 31, 2016. |
| | |
| See Notes to Financial Statements. | | 61 |
| | |
| Baron Select Funds | | June 30, 2021 |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON FOCUSED GROWTH FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | Supplemental
Data: | |
| | | | | | | | | | | | | | | |
| | | Net asset
value,
beginning
of period
($) | | | Net
investment
income
(loss) ($) | | | Net
realized
and
unrealized
gain (loss)
($) | | | Total from
investment
operations
($) | | | Net
investment
income
($) | | | Net realized
gain on
investments
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%) | | | Operating
expenses
(%) | | | Less:
Reimbursement
of expenses
by Adviser
(%) | | | Net
operating
expenses
(%) | | | Net
investment
income
(loss)
(%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | |
2021 | | | 43.36 | | | | (0.28 | )1 | | | 1.32 | | | | 1.04 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 44.40 | | | | 2.40 | 4 | | | 1.32 | 5 | | | 0.00 | | | | 1.32 | 5 | | | (1.25 | )5 | | | 176.3 | | | | 8.58 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | |
2020 | | | 20.18 | | | | (0.32 | )1 | | | 24.74 | | | | 24.42 | | | | 0.00 | | | | (1.24 | ) | | | (1.24 | ) | | | 43.36 | | | | 122.21 | | | | 1.35 | | | | 0.00 | | | | 1.35 | | | | (1.15 | ) | | | 157.7 | | | | 18.09 | |
| | | | | | | | | | | | | | | |
2019 | | | 15.81 | | | | (0.12 | )1 | | | 4.85 | | | | 4.73 | | | | 0.00 | | | | (0.36 | ) | | | (0.36 | ) | | | 20.18 | | | | 30.03 | 3 | | | 1.39 | 8 | | | (0.04 | ) | | | 1.35 | | | | (0.67 | ) | | | 49.1 | | | | 4.53 | |
| | | | | | | | | | | | | | | |
2018 | | | 15.38 | | | | (0.08 | )1 | | | 0.68 | | | | 0.60 | | | | 0.00 | | | | (0.17 | ) | | | (0.17 | ) | | | 15.81 | | | | 3.75 | 3 | | | 1.39 | 8 | | | (0.04 | ) | | | 1.35 | | | | (0.49 | ) | | | 40.9 | | | | 1.85 | |
| | | | | | | | | | | | | | | |
2017 | | | 12.43 | | | | (0.09 | )1 | | | 3.36 | | | | 3.27 | | | | (0.00 | )2 | | | (0.32 | ) | | | (0.32 | ) | | | 15.38 | | | | 26.36 | 3 | | | 1.40 | | | | (0.05 | ) | | | 1.35 | | | | (0.64 | ) | | | 42.4 | | | | 11.48 | |
| | | | | | | | | | | | | | | |
2016 | | | 13.09 | | | | 0.01 | 1 | | | 0.08 | | | | 0.09 | | | | 0.00 | | | | (0.75 | ) | | | (0.75 | ) | | | 12.43 | | | | 0.67 | 3 | | | 1.43 | | | | (0.08 | ) | | | 1.35 | | | | 0.11 | | | | 37.7 | | | | 14.31 | |
| | | | | | | | | | | | | | | |
2015 | | | 14.21 | | | | (0.01 | )1 | | | (0.35 | ) | | | (0.36 | ) | | | (0.02 | ) | | | (0.74 | ) | | | (0.76 | ) | | | 13.09 | | | | (2.42 | )3 | | | 1.39 | | | | (0.04 | ) | | | 1.35 | | | | (0.10 | ) | | | 43.7 | | | | 12.18 | |
| | | | | | | | | | | | | | | |
2014 | | | 13.97 | | | | 0.04 | 1 | | | 0.29 | | | | 0.33 | | | | 0.00 | | | | (0.09 | ) | | | (0.09 | ) | | | 14.21 | | | | 2.35 | 3 | | | 1.39 | | | | (0.04 | ) | | | 1.35 | | | | 0.31 | | | | 46.1 | | | | 36.92 | |
| | | | | | | | | | | | | | | |
2013 | | | 11.26 | | | | (0.07 | )1 | | | 2.95 | | | | 2.88 | | | | (0.17 | ) | | | 0.00 | | | | (0.17 | ) | | | 13.97 | | | | 25.69 | 3 | | | 1.42 | | | | (0.07 | ) | | | 1.35 | | | | (0.53 | ) | | | 47.6 | | | | 33.67 | |
| | | | | | | | | | | | | | | |
2012 | | | 9.71 | | | | 0.24 | 1 | | | 1.31 | | | | 1.55 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 11.26 | | | | 15.96 | 3 | | | 1.48 | | | | (0.13 | ) | | | 1.35 | | | | 2.30 | | | | 31.4 | | | | 38.38 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | |
2021 | | | 44.56 | | | | (0.22 | )1 | | | 1.35 | | | | 1.13 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 45.69 | | | | 2.54 | 4 | | | 1.05 | 5 | | | 0.00 | | | | 1.05 | 5 | | | (0.98 | )5 | | | 235.1 | | | | 8.58 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | |
2020 | | | 20.67 | | | | (0.24 | )1 | | | 25.37 | | | | 25.13 | | | | 0.00 | | | | (1.24 | ) | | | (1.24 | ) | | | 44.56 | | | | 122.75 | | | | 1.07 | | | | 0.00 | | | | 1.07 | | | | (0.88 | ) | | | 233.7 | | | | 18.09 | |
| | | | | | | | | | | | | | | |
2019 | | | 16.15 | | | | (0.08 | )1 | | | 4.96 | | | | 4.88 | | | | 0.00 | | | | (0.36 | ) | | | (0.36 | ) | | | 20.67 | | | | 30.33 | 3 | | | 1.11 | 8 | | | (0.01 | ) | | | 1.10 | | | | (0.42 | ) | | | 91.3 | | | | 4.53 | |
| | | | | | | | | | | | | | | |
2018 | | | 15.66 | | | | (0.05 | )1 | | | 0.71 | | | | 0.66 | | | | 0.00 | | | | (0.17 | ) | | | (0.17 | ) | | | 16.15 | | | | 4.07 | | | | 1.09 | 8 | | | 0.00 | | | | 1.09 | | | | (0.30 | ) | | | 70.7 | | | | 1.85 | |
| | | | | | | | | | | | | | | |
2017 | | | 12.63 | | | | (0.06 | )1 | | | 3.41 | | | | 3.35 | | | | (0.00 | )2 | | | (0.32 | ) | | | (0.32 | ) | | | 15.66 | | | | 26.59 | 3 | | | 1.12 | | | | (0.02 | ) | | | 1.10 | | | | (0.39 | ) | | | 127.8 | | | | 11.48 | |
| | | | | | | | | | | | | | | |
2016 | | | 13.25 | | | | 0.05 | 1 | | | 0.08 | | | | 0.13 | | | | 0.00 | | | | (0.75 | ) | | | (0.75 | ) | | | 12.63 | | | | 0.97 | 3 | | | 1.13 | | | | (0.03 | ) | | | 1.10 | | | | 0.37 | | | | 128.9 | | | | 14.31 | |
| | | | | | | | | | | | | | | |
2015 | | | 14.37 | | | | 0.02 | 1 | | | (0.34 | ) | | | (0.32 | ) | | | (0.06 | ) | | | (0.74 | ) | | | (0.80 | ) | | | 13.25 | | | | (2.12 | ) | | | 1.09 | | | | 0.00 | | | | 1.09 | | | | 0.16 | | | | 140.5 | | | | 12.18 | |
| | | | | | | | | | | | | | | |
2014 | | | 14.10 | | | | 0.08 | 1 | | | 0.28 | | | | 0.36 | | | | 0.00 | | | | (0.09 | ) | | | (0.09 | ) | | | 14.37 | | | | 2.54 | | | | 1.09 | | | | 0.00 | | | | 1.09 | | | | 0.56 | | | | 149.2 | | | | 36.92 | |
| | | | | | | | | | | | | | | |
2013 | | | 11.35 | | | | (0.04 | )1 | | | 2.99 | | | | 2.95 | | | | (0.20 | ) | | | 0.00 | | | | (0.20 | ) | | | 14.10 | | | | 26.09 | 3 | | | 1.12 | | | | (0.02 | ) | | | 1.10 | | | | (0.28 | ) | | | 148.4 | | | | 33.67 | |
| | | | | | | | | | | | | | | |
2012 | | | 9.77 | | | | 0.26 | 1 | | | 1.32 | | | | 1.58 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 11.35 | | | | 16.17 | 3 | | | 1.16 | | | | (0.06 | ) | | | 1.10 | | | | 2.53 | | | | 87.9 | | | | 38.38 | |
|
R6 SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | |
2021 | | | 44.59 | | | | (0.22 | )1 | | | 1.35 | | | | 1.13 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 45.72 | | | | 2.53 | 4 | | | 1.05 | 5 | | | 0.00 | | | | 1.05 | 5 | | | (0.98 | )5 | | | 278.2 | | | | 8.58 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | |
2020 | | | 20.68 | | | | (0.24 | )1 | | | 25.39 | | | | 25.15 | | | | 0.00 | | | | (1.24 | ) | | | (1.24 | ) | | | 44.59 | | | | 122.78 | | | | 1.07 | | | | 0.00 | | | | 1.07 | | | | (0.87 | ) | | | 271.3 | | | | 18.09 | |
| | | | | | | | | | | | | | | |
2019 | | | 16.16 | | | | (0.07 | )1 | | | 4.95 | | | | 4.88 | | | | 0.00 | | | | (0.36 | ) | | | (0.36 | ) | | | 20.68 | | | | 30.31 | | | | 1.10 | 8 | | | 0.00 | | | | 1.10 | | | | (0.40 | ) | | | 122.0 | | | | 4.53 | |
| | | | | | | | | | | | | | | |
2018 | | | 15.67 | | | | (0.03 | )1 | | | 0.69 | | | | 0.66 | | | | 0.00 | | | | (0.17 | ) | | | (0.17 | ) | | | 16.16 | | | | 4.07 | 3 | | | 1.10 | 8 | | | (0.00 | )7 | | | 1.10 | | | | (0.18 | ) | | | 92.2 | | | | 1.85 | |
| | | | | | | | | | | | | | | |
2017 | | | 12.63 | | | | (0.06 | )1 | | | 3.42 | | | | 3.36 | | | | (0.00 | )2 | | | (0.32 | ) | | | (0.32 | ) | | | 15.67 | | | | 26.67 | 3 | | | 1.10 | | | | (0.00 | )7 | | | 1.10 | | | | (0.38 | ) | | | 22.6 | | | | 11.48 | |
| | | | | | | | | | | | | | | |
20166 | | | 13.87 | | | | 0.02 | 1 | | | (0.51 | ) | | | (0.49 | ) | | | 0.00 | | | | (0.75 | ) | | | (0.75 | ) | | | 12.63 | | | | (3.55 | )3,4 | | | 1.14 | 5 | | | (0.04 | )5 | | | 1.10 | 5 | | | 0.53 | 5 | | | 8.6 | | | | 14.31 | |
| 1 | Based on average shares outstanding. |
| 2 | Less than $0.01 per share. |
| 3 | The total returns would have been lower had certain expenses not been reduced during the period shown. |
| 6 | For the period August 31, 2016 (initial offering of R6 Shares) to December 31, 2016. |
| 8 | Interest expense rounds to less than 0.01%. |
| | |
| 62 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Select Funds |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON INTERNATIONAL GROWTH FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | Supplemental
Data: | |
| | | | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($) | | | Net
realized
and
unrealized
gain
(loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gain on
investments
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%) | | | Operating
expenses
(%) | | | Less:
Reimbursement
of expenses
by Adviser
(%) | | | Net
operating
expenses
(%) | | | Net
investment
income
(loss)
(%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
| | | | | | |
RETAIL SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Six Months Ended June 30, | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
2021 | | | 31.97 | | | | 0.03 | 1 | | | 3.46 | | | | 3.49 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 35.46 | | | | 10.92 | 3,4 | | | 1.24 | 5 | | | (0.04 | )5 | | | 1.20 | 5 | | | 0.18 | 5 | | | 95.3 | | | | 14.23 | 4 |
| | | | | | | | | |
Year Ended December 31, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
2020 | | | 24.50 | | | | (0.01 | )1 | | | 7.49 | | | | 7.48 | | | | (0.01 | ) | | | 0.00 | | | | (0.01 | ) | | | 31.97 | | | | 30.52 | 3 | | | 1.28 | | | | (0.08 | ) | | | 1.20 | | | | (0.05 | ) | | | 85.5 | | | | 41.13 | |
| | | | | | | | | | | | | | | |
2019 | | | 19.00 | | | | 0.01 | 1 | | | 5.51 | | | | 5.52 | | | | (0.01 | ) | | | (0.01 | ) | | | (0.02 | ) | | | 24.50 | | | | 29.06 | 3 | | | 1.31 | | | | (0.11 | ) | | | 1.20 | | | | 0.06 | | | | 82.0 | | | | 56.52 | |
| | | | | | | | | | | | | | | |
2018 | | | 23.90 | | | | (0.01 | )1 | | | (4.21 | ) | | | (4.22 | ) | | | 0.00 | | | | (0.68 | ) | | | (0.68 | ) | | | 19.00 | | | | (17.90 | )3 | | | 1.34 | 7 | | | (0.14 | ) | | | 1.20 | | | | (0.03 | ) | | | 59.8 | | | | 50.83 | |
| | | | | | | | | | | | | | | |
2017 | | | 18.09 | | | | (0.06 | )1 | | | 6.72 | | | | 6.66 | | | | 0.00 | | | | (0.85 | ) | | | (0.85 | ) | | | 23.90 | | | | 36.94 | 3 | | | 1.51 | | | | (0.14 | ) | | | 1.37 | | | | (0.28 | ) | | | 56.5 | | | | 31.44 | |
| | | | | | | | | | | | | | | |
2016 | | | 18.05 | | | | (0.03 | )1 | | | 0.24 | | | | 0.21 | | | | (0.01 | ) | | | (0.16 | ) | | | (0.17 | ) | | | 18.09 | | | | 1.14 | 3 | | | 1.65 | | | | (0.15 | ) | | | 1.50 | | | | (0.16 | ) | | | 41.8 | | | | 38.90 | |
| | | | | | | | | | | | | | | |
2015 | | | 17.94 | | | | 0.03 | 1 | | | 0.19 | | | | 0.22 | | | | (0.08 | ) | | | (0.03 | ) | | | (0.11 | ) | | | 18.05 | | | | 1.23 | 3 | | | 1.59 | | | | (0.09 | ) | | | 1.50 | | | | 0.15 | | | | 44.9 | | | | 42.85 | |
| | | | | | | | | | | | | | | |
2014 | | | 18.91 | | | | 0.03 | 1 | | | (0.46 | ) | | | (0.43 | ) | | | (0.00 | )2 | | | (0.54 | ) | | | (0.54 | ) | | | 17.94 | | | | (2.33 | )3 | | | 1.63 | | | | (0.13 | ) | | | 1.50 | | | | 0.14 | | | | 53.0 | | | | 34.67 | |
| | | | | | | | | | | | | | | |
2013 | | | 15.55 | | | | (0.01 | )1 | | | 3.37 | | | | 3.36 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 18.91 | | | | 21.61 | 3 | | | 1.74 | | | | (0.24 | ) | | | 1.50 | | | | (0.05 | ) | | | 17.0 | | | | 40.60 | |
| | | | | | | | | | | | | | | |
2012 | | | 13.20 | | | | (0.02 | )1 | | | 2.37 | | | | 2.35 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 15.55 | | | | 17.80 | 3 | | | 1.78 | | | | (0.28 | ) | | | 1.50 | | | | (0.16 | ) | | | 15.6 | | | | 39.02 | |
| | | | | | |
INSTITUTIONAL SHARES | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Six Months Ended June 30, | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
2021 | | | 32.51 | | | | 0.08 | 1 | | | 3.51 | | | | 3.59 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 36.10 | | | | 11.04 | 3,4 | | | 0.97 | 5 | | | (0.02 | )5 | | | 0.95 | 5 | | | 0.45 | 5 | | | 466.3 | | | | 14.23 | 4 |
| | | | | | |
Year Ended December 31, | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
2020 | | | 24.88 | | | | 0.06 | 1 | | | 7.61 | | | | 7.67 | | | | (0.04 | ) | | | 0.00 | | | | (0.04 | ) | | | 32.51 | | | | 30.83 | 3 | | | 1.01 | | | | (0.06 | ) | | | 0.95 | | | | 0.25 | | | | 362.9 | | | | 41.13 | |
| | | | | | | | | | | | | | | |
2019 | | | 19.29 | | | | 0.06 | 1 | | | 5.61 | | | | 5.67 | | | | (0.07 | ) | | | (0.01 | ) | | | (0.08 | ) | | | 24.88 | | | | 29.39 | 3 | | | 1.04 | | | | (0.09 | ) | | | 0.95 | | | | 0.27 | | | | 223.6 | | | | 56.52 | |
| | | | | | | | | | | | | | | |
2018 | | | 24.19 | | | | 0.06 | 1 | | | (4.28 | ) | | | (4.22 | ) | | | 0.00 | | | | (0.68 | ) | | | (0.68 | ) | | | 19.29 | | | | (17.68 | )3 | | | 1.07 | 7 | | | (0.12 | ) | | | 0.95 | | | | 0.26 | | | | 154.2 | | | | 50.83 | |
| | | | | | | | | | | | | | | |
2017 | | | 18.25 | | | | (0.01 | )1 | | | 6.80 | | | | 6.79 | | | | 0.00 | | | | (0.85 | ) | | | (0.85 | ) | | | 24.19 | | | | 37.33 | 3 | | | 1.23 | | | | (0.12 | ) | | | 1.11 | | | | (0.06 | ) | | | 110.8 | | | | 31.44 | |
| | | | | | | | | | | | | | | |
2016 | | | 18.17 | | | | 0.01 | 1 | | | 0.24 | | | | 0.25 | | | | (0.01 | ) | | | (0.16 | ) | | | (0.17 | ) | | | 18.25 | | | | 1.35 | 3 | | | 1.36 | | | | (0.11 | ) | | | 1.25 | | | | 0.07 | | | | 45.4 | | | | 38.90 | |
| | | | | | | | | | | | | | | |
2015 | | | 18.09 | | | | 0.08 | 1 | | | 0.19 | | | | 0.27 | | | | (0.16 | ) | | | (0.03 | ) | | | (0.19 | ) | | | 18.17 | | | | 1.48 | 3 | | | 1.31 | | | | (0.06 | ) | | | 1.25 | | | | 0.41 | | | | 53.7 | | | | 42.85 | |
| | | | | | | | | | | | | | | |
2014 | | | 19.05 | | | | 0.12 | 1 | | | (0.50 | ) | | | (0.38 | ) | | | (0.04 | ) | | | (0.54 | ) | | | (0.58 | ) | | | 18.09 | | | | (2.07 | )3 | | | 1.34 | | | | (0.09 | ) | | | 1.25 | | | | 0.64 | | | | 52.3 | | | | 34.67 | |
| | | | | | | | | | | | | | | |
2013 | | | 15.63 | | | | 0.03 | 1 | | | 3.39 | | | | 3.42 | | | | (0.00 | )2 | | | 0.00 | | | | (0.00 | )2 | | | 19.05 | | | | 21.89 | 3 | | | 1.37 | | | | (0.12 | ) | | | 1.25 | | | | 0.20 | | | | 45.4 | | | | 40.60 | |
| | | | | | | | | | | | | | | |
2012 | | | 13.25 | | | | 0.01 | 1 | | | 2.40 | | | | 2.41 | | | | (0.03 | ) | | | 0.00 | | | | (0.03 | ) | | | 15.63 | | | | 18.17 | 3 | | | 1.40 | | | | (0.15 | ) | | | 1.25 | | | | 0.09 | | | | 39.0 | | | | 39.02 | |
| | | | | | | | | |
R6 SHARES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Six Months Ended June 30, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
2021 | | | 32.49 | | | | 0.07 | 1 | | | 3.52 | | | | 3.59 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 36.08 | | | | 11.05 | 3,4 | | | 0.97 | 5 | | | (0.02 | )5 | | | 0.95 | 5 | | | 0.42 | 5 | | | 160.5 | | | | 14.23 | 4 |
| | | | | | |
Year Ended December 31, | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
2020 | | | 24.88 | | | | 0.04 | 1 | | | 7.61 | | | | 7.65 | | | | (0.04 | ) | | | 0.00 | | | | (0.04 | ) | | | 32.49 | | | | 30.75 | 3 | | | 0.98 | | | | (0.03 | ) | | | 0.95 | | | | 0.15 | | | | 163.5 | | | | 41.13 | |
| | | | | | | | | | | | | | | |
2019 | | | 19.29 | | | | 0.06 | 1 | | | 5.61 | | | | 5.67 | | | | (0.07 | ) | | | (0.01 | ) | | | (0.08 | ) | | | 24.88 | | | | 29.39 | 3 | | | 1.03 | | | | (0.08 | ) | | | 0.95 | | | | 0.28 | | | | 17.7 | | | | 56.52 | |
| | | | | | | | | | | | | | | |
2018 | | | 24.19 | | | | 0.07 | 1 | | | (4.29 | ) | | | (4.22 | ) | | | 0.00 | | | | (0.68 | ) | | | (0.68 | ) | | | 19.29 | | | | (17.68 | )3 | | | 1.06 | 7 | | | (0.11 | ) | | | 0.95 | | | | 0.31 | | | | 12.4 | | | | 50.83 | |
| | | | | | | | | | | | | | | |
2017 | | | 18.25 | | | | (0.02 | )1 | | | 6.81 | | | | 6.79 | | | | 0.00 | | | | (0.85 | ) | | | (0.85 | ) | | | 24.19 | | | | 37.33 | 3 | | | 1.22 | | | | (0.12 | ) | | | 1.10 | | | | (0.10 | ) | | | 0.8 | | | | 31.44 | |
| | | | | | | | | | | | | | | |
20166 | | | 19.15 | | | | (0.02 | )1 | | | (0.71 | ) | | | (0.73 | ) | | | (0.01 | ) | | | (0.16 | ) | | | (0.17 | ) | | | 18.25 | | | | (3.83 | )3,4 | | | 1.38 | 5 | | | (0.14 | )5 | | | 1.24 | 5 | | | (0.31 | )5 | | | 0.4 | | | | 38.90 | |
| 1 | Based on average shares outstanding. |
| 2 | Less than $0.01 per share. |
| 3 | The total returns would have been lower had certain expenses not been reduced during the period shown. |
| 6 | For the period August 31, 2016 (initial offering of R6 Shares) to December 31, 2016. |
| 7 | Interest expense rounds to less than 0.01%. |
| | |
| See Notes to Financial Statements. | | 63 |
| | |
| Baron Select Funds | | June 30, 2021 |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON REAL ESTATE FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | Supplemental
Data: | |
| | | | | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($) | | | Net
realized
and
unrealized
gain
(loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gain on
investments
($) | | | Return of
capital
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%) | | | Operating
expenses
(%) | | | Less:
Reimbursement
of expenses
by Adviser
(%) | | | Net
operating
expenses
(%) | | | Net
investment
income
(loss)
(%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | | |
2021 | | | 35.21 | | | | (0.06 | )1 | | | 5.73 | | | | 5.67 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 40.88 | | | | 16.10 | 4 | | | 1.32 | 5 | | | 0.00 | | | | 1.32 | 5 | | | (0.31 | )5 | | | 481.1 | | | | 27.65 | 4 |
| |
Year Ended December 31, | | | | | |
| | | | | | | | | | | | | | | | |
2020 | | | 26.18 | | | | (0.10 | )1 | | | 11.34 | | | | 11.24 | | | | (0.00 | )2 | | | (2.21 | ) | | | 0.00 | | | | (2.21 | ) | | | 35.21 | | | | 43.85 | | | | 1.34 | | | | 0.00 | | | | 1.34 | | | | (0.36 | ) | | | 321.8 | | | | 71.46 | |
| | | | | | | | | | | | | | | | |
2019 | | | 20.77 | | | | (0.03 | )1 | | | 9.08 | | | | 9.05 | | | | 0.00 | | | | (3.64 | ) | | | 0.00 | | | | (3.64 | ) | | | 26.18 | | | | 44.11 | | | | 1.33 | 7 | | | 0.00 | | | | 1.33 | | | | (0.10 | ) | | | 246.9 | | | | 53.44 | |
| | | | | | | | | | | | | | | | |
2018 | | | 29.58 | | | | (0.03 | )1 | | | (6.28 | ) | | | (6.31 | ) | | | 0.00 | | | | (2.50 | ) | | | 0.00 | | | | (2.50 | ) | | | 20.77 | | | | (22.22 | ) | | | 1.32 | 7 | | | 0.00 | | | | 1.32 | | | | (0.10 | ) | | | 213.0 | | | | 56.47 | |
| | | | | | | | | | | | | | | | |
2017 | | | 23.67 | | | | 0.00 | 1,2 | | | 7.32 | | | | 7.32 | | | | 0.00 | | | | (1.41 | ) | | | 0.00 | | | | (1.41 | ) | | | 29.58 | | | | 31.04 | | | | 1.32 | | | | 0.00 | | | | 1.32 | | | | 0.01 | | | | 426.7 | | | | 44.56 | |
| | | | | | | | | | | | | | | | |
2016 | | | 24.24 | | | | (0.02 | )1 | | | (0.47 | ) | | | (0.49 | ) | | | 0.00 | | | | (0.08 | ) | | | 0.00 | | | | (0.08 | ) | | | 23.67 | | | | (2.01 | ) | | | 1.33 | | | | 0.00 | | | | 1.33 | | | | (0.07 | ) | | | 434.0 | | | | 55.50 | |
| | | | | | | | | | | | | | | | |
2015 | | | 25.92 | | | | (0.06 | )1 | | | (1.14 | ) | | | (1.20 | ) | | | (0.01 | ) | | | (0.47 | ) | | | 0.00 | | | | (0.48 | ) | | | 24.24 | | | | (4.65 | ) | | | 1.31 | | | | 0.00 | | | | 1.31 | | | | (0.23 | ) | | | 788.9 | | | | 50.50 | |
| | | | | | | | | | | | | | | | |
2014 | | | 22.25 | | | | 0.04 | 1 | | | 3.66 | | | | 3.70 | | | | (0.03 | ) | | | 0.00 | | | | 0.00 | | | | (0.03 | ) | | | 25.92 | | | | 16.61 | | | | 1.32 | | | | 0.00 | | | | 1.32 | | | | 0.17 | | | | 782.8 | | | | 24.40 | |
| | | | | | | | | | | | | | | | |
2013 | | | 17.52 | | | | (0.05 | )1 | | | 4.80 | | | | 4.75 | | | | 0.00 | | | | (0.02 | ) | | | 0.00 | | | | (0.02 | ) | | | 22.25 | | | | 27.12 | | | | 1.35 | | | | 0.00 | | | | 1.35 | | | | (0.23 | ) | | | 539.5 | | | | 19.36 | |
| | | | | | | | | | | | | | | | |
2012 | | | 12.51 | | | | 0.01 | 1 | | | 5.31 | | | | 5.32 | | | | 0.00 | | | | (0.31 | ) | | | 0.00 | | | | (0.31 | ) | | | 17.52 | | | | 42.60 | 3 | | | 1.76 | | | | (0.41 | ) | | | 1.35 | | | | 0.07 | | | | 53.6 | | | | 30.14 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | | |
2021 | | | 36.02 | | | | (0.00 | )1,2 | | | 5.85 | | | | 5.85 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 41.87 | | | | 16.24 | 4 | | | 1.06 | 5 | | | 0.00 | | | | 1.06 | 5 | | | (0.02 | )5 | | | 1,274.7 | | | | 27.65 | 4 |
| |
Year Ended December 31, | | | | | |
| | | | | | | | | | | | | | | | |
2020 | | | 26.68 | | | | (0.03 | )1 | | | 11.60 | | | | 11.57 | | | | (0.02 | ) | | | (2.21 | ) | | | 0.00 | | | | (2.23 | ) | | | 36.02 | | | | 44.28 | | | | 1.08 | | | | 0.00 | | | | 1.08 | | | | (0.10 | ) | | | 705.4 | | | | 71.46 | |
| | | | | | | | | | | | | | | | |
2019 | | | 21.10 | | | | 0.04 | 1 | | | 9.22 | | | | 9.26 | | | | (0.04 | ) | | | (3.64 | ) | | | 0.00 | | | | (3.68 | ) | | | 26.68 | | | | 44.44 | | | | 1.08 | 7 | | | 0.00 | | | | 1.08 | | | | 0.15 | | | | 360.2 | | | | 53.44 | |
| | | | | | | | | | | | | | | | |
2018 | | | 30.01 | | | | 0.05 | 1 | | | (6.39 | ) | | | (6.34 | ) | | | (0.07 | ) | | | (2.50 | ) | | | 0.00 | | | | (2.57 | ) | | | 21.10 | | | | (22.04 | ) | | | 1.06 | 7 | | | 0.00 | | | | 1.06 | | | | 0.17 | | | | 320.9 | | | | 56.47 | |
| | | | | | | | | | | | | | | | |
2017 | | | 23.93 | | | | 0.07 | 1 | | | 7.42 | | | | 7.49 | | | | 0.00 | | | | (1.41 | ) | | | 0.00 | | | | (1.41 | ) | | | 30.01 | | | | 31.42 | | | | 1.06 | | | | 0.00 | | | | 1.06 | | | | 0.26 | | | | 657.6 | | | | 44.56 | |
| | | | | | | | | | | | | | | | |
2016 | | | 24.51 | | | | 0.04 | 1 | | | (0.47 | ) | | | (0.43 | ) | | | 0.00 | | | | (0.08 | ) | | | (0.07 | ) | | | (0.15 | ) | | | 23.93 | | | | (1.75 | ) | | | 1.07 | | | | 0.00 | | | | 1.07 | | | | 0.19 | | | | 514.6 | | | | 55.50 | |
| | | | | | | | | | | | | | | | |
2015 | | | 26.14 | | | | 0.01 | 1 | | | (1.16 | ) | | | (1.15 | ) | | | (0.01 | ) | | | (0.47 | ) | | | 0.00 | | | | (0.48 | ) | | | 24.51 | | | | (4.42 | ) | | | 1.06 | | | | 0.00 | | | | 1.06 | | | | 0.04 | | | | 992.8 | | | | 50.50 | |
| | | | | | | | | | | | | | | | |
2014 | | | 22.43 | | | | 0.11 | 1 | | | 3.68 | | | | 3.79 | | | | (0.08 | ) | | | 0.00 | | | | 0.00 | | | | (0.08 | ) | | | 26.14 | | | | 16.93 | | | | 1.06 | | | | 0.00 | | | | 1.06 | | | | 0.44 | | | | 919.7 | | | | 24.40 | |
| | | | | | | | | | | | | | | | |
2013 | | | 17.64 | | | | 0.03 | 1 | | | 4.81 | | | | 4.84 | | | | (0.00 | )2 | | | (0.02 | ) | | | (0.03 | ) | | | (0.05 | ) | | | 22.43 | | | | 27.48 | | | | 1.09 | | | | 0.00 | | | | 1.09 | | | | 0.15 | | | | 486.1 | | | | 19.36 | |
| | | | | | | | | | | | | | | | |
2012 | | | 12.56 | | | | 0.06 | 1 | | | 5.33 | | | | 5.39 | | | | 0.00 | | | | (0.31 | ) | | | 0.00 | | | | (0.31 | ) | | | 17.64 | | | | 42.99 | 3 | | | 1.44 | | | | (0.34 | ) | | | 1.10 | | | | 0.36 | | | | 35.5 | | | | 30.14 | |
|
CLASS C SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | | |
2021 | | | 36.02 | | | | (0.01 | )1 | | | 5.86 | | | | 5.85 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 41.87 | | | | 16.24 | 4 | | | 1.06 | 5 | | | 0.00 | | | | 1.06 | 5 | | | (0.06 | )5 | | | 27.3 | | | | 27.65 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | | |
2020 | | | 26.69 | | | | (0.03 | )1 | | | 11.59 | | | | 11.56 | | | | (0.02 | ) | | | (2.21 | ) | | | 0.00 | | | | (2.23 | ) | | | 36.02 | | | | 44.23 | | | | 1.07 | | | | 0.00 | | | | 1.07 | | | | (0.10 | ) | | | 20.0 | | | | 71.46 | |
| | | | | | | | | | | | | | | | |
2019 | | | 21.10 | | | | 0.04 | 1 | | | 9.23 | | | | 9.27 | | | | (0.04 | ) | | | (3.64 | ) | | | 0.00 | | | | (3.68 | ) | | | 26.69 | | | | 44.51 | | | | 1.07 | 7 | | | 0.00 | | | | 1.07 | | | | 0.17 | | | | 13.2 | | | | 53.44 | |
| | | | | | | | | | | | | | | | |
2018 | | | 30.01 | | | | 0.09 | 1 | | | (6.43 | ) | | | (6.34 | ) | | | (0.07 | ) | | | (2.50 | ) | | | 0.00 | | | | (2.57 | ) | | | 21.10 | | | | (22.03 | ) | | | 1.07 | 7 | | | 0.00 | | | | 1.07 | | | | 0.31 | | | | 9.3 | | | | 56.47 | |
| | | | | | | | | | | | | | | | |
2017 | | | 23.93 | | | | 0.07 | 1 | | | 7.42 | | | | 7.49 | | | | 0.00 | | | | (1.41 | ) | | | 0.00 | | | | (1.41 | ) | | | 30.01 | | | | 31.42 | | | | 1.06 | | | | 0.00 | | | | 1.06 | | | | 0.26 | | | | 3.3 | | | | 44.56 | |
| | | | | | | | | | | | | | | | |
20166 | | | 21.80 | | | | 0.02 | 1 | | | 2.26 | | | | 2.28 | | | | 0.00 | | | | (0.08 | ) | | | (0.07 | ) | | | (0.15 | ) | | | 23.93 | | | | 10.47 | 4 | | | 1.07 | 5 | | | 0.00 | | | | 1.07 | 5 | | | 0.08 | 5 | | | 2.0 | | | | 55.50 | |
| 1 | Based on average shares outstanding. |
| 2 | Less than $0.01 per share. |
| 3 | The total returns would have been lower had certain expenses not been reduced during the period shown. |
| 6 | For the period January 29, 2016 (initial offering of R6 Shares) to December 31, 2016. |
| 7 | Interest expense rounds to less than 0.01%. |
| | |
| 64 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Select Funds |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON EMERGING MARKETS FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | Supplemental
Data: | |
| | | | | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($) | | | Net
realized
and
unrealized
gain (loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gain on
investments
($) | | | Return
of
capital
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%) | | | Operating
expenses
(%) | | | Less:
Reimbursement
of expenses
by Adviser
(%) | | | Net
operating
expenses
(%) | | | Net
investment
income
(loss)
(%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | | |
2021 | | | 18.97 | | | | (0.02 | )1 | | | 0.89 | | | | 0.87 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 19.84 | | | | 4.59 | 3 | | | 1.32 | 4 | | | 0.00 | | | | 1.32 | 4 | | | (0.16 | )4 | | | 531.3 | | | | 14.72 | 3 |
| |
Year Ended December 31, | | | | | |
| | | | | | | | | | | | | | | | |
2020 | | | 14.72 | | | | (0.06 | )1 | | | 4.31 | | | | 4.25 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 18.97 | | | | 28.87 | | | | 1.35 | | | | 0.00 | | | | 1.35 | | | | (0.44 | ) | | | 507.7 | | | | 55.65 | |
| | | | | | | | | | | | | | | | |
2019 | | | 12.45 | | | | 0.03 | 1 | | | 2.27 | | | | 2.30 | | | | (0.03 | ) | | | 0.00 | | | | (0.00 | )6 | | | (0.03 | ) | | | 14.72 | | | | 18.48 | | | | 1.35 | | | | 0.00 | | | | 1.35 | | | | 0.23 | | | | 667.1 | | | | 59.00 | |
| | | | | | | | | | | | | | | | |
2018 | | | 15.33 | | | | 0.05 | 1 | | | (2.91 | ) | | | (2.86 | ) | | | (0.02 | ) | | | 0.00 | | | | 0.00 | | | | (0.02 | ) | | | 12.45 | | | | (18.67 | ) | | | 1.36 | | | | 0.00 | | | | 1.36 | | | | 0.36 | | | | 753.5 | | | | 43.27 | |
| | | | | | | | | | | | | | | | |
2017 | | | 10.95 | | | | 0.03 | 1 | | | 4.39 | | | | 4.42 | | | | (0.04 | ) | | | 0.00 | | | | (0.00 | )6 | | | (0.04 | ) | | | 15.33 | | | | 40.34 | | | | 1.36 | | | | 0.00 | | | | 1.36 | | | | 0.23 | | | | 1,121.4 | | | | 30.75 | |
| | | | | | | | | | | | | | | | |
2016 | | | 10.57 | | | | 0.04 | 1 | | | 0.36 | | | | 0.40 | | | | (0.02 | ) | | | 0.00 | | | | 0.00 | | | | (0.02 | ) | | | 10.95 | | | | 3.75 | | | | 1.38 | | | | 0.00 | | | | 1.38 | | | | 0.33 | | | | 768.5 | | | | 25.31 | |
| | | | | | | | | | | | | | | | |
2015 | | | 11.91 | | | | 0.03 | 1 | | | (1.36 | ) | | | (1.33 | ) | | | (0.01 | ) | | | 0.00 | | | | 0.00 | | | | (0.01 | ) | | | 10.57 | | | | (11.16 | ) | | | 1.45 | | | | 0.00 | | | | 1.45 | | | | 0.25 | | | | 665.5 | | | | 26.34 | |
| | | | | | | | | | | | | | | | |
2014 | | | 11.54 | | | | 0.07 | 1 | | | 0.33 | | | | 0.40 | | | | (0.03 | ) | | | 0.00 | | | | 0.00 | | | | (0.03 | ) | | | 11.91 | | | | 3.47 | 2 | | | 1.52 | | | | (0.02 | ) | | | 1.50 | | | | 0.56 | | | | 649.7 | | | | 23.38 | |
| | | | | | | | | | | | | | | | |
2013 | | | 10.06 | | | | (0.06 | )1 | | | 1.54 | | | | 1.48 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 11.54 | | | | 14.71 | 2 | | | 1.90 | | | | (0.40 | ) | | | 1.50 | | | | (0.53 | ) | | | 259.6 | | | | 14.68 | |
| | | | | | | | | | | | | | | | |
2012 | | | 8.28 | | | | (0.04 | )1 | | | 1.94 | | | | 1.90 | | | | (0.12 | ) | | | 0.00 | | | | 0.00 | | | | (0.12 | ) | | | 10.06 | | | | 22.98 | 2 | | | 4.01 | | | | (2.51 | ) | | | 1.50 | | | | (0.39 | ) | | | 2.9 | | | | 42.68 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | | |
2021 | | | 19.06 | | | | 0.01 | 1 | | | 0.88 | | | | 0.89 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 19.95 | | | | 4.67 | 3 | | | 1.06 | 4 | | | 0.00 | | | | 1.06 | 4 | | | 0.15 | 4 | | | 8,134.1 | | | | 14.72 | 3 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | | |
2020 | | | 14.75 | | | | (0.03 | )1 | | | 4.34 | | | | 4.31 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 19.06 | | | | 29.22 | | | | 1.09 | | | | 0.00 | | | | 1.09 | | | | (0.20 | ) | | | 6,228.8 | | | | 55.65 | |
| | | | | | | | | | | | | | | | |
2019 | | | 12.47 | | | | 0.07 | 1 | | | 2.28 | | | | 2.35 | | | | (0.06 | ) | | | 0.00 | | | | (0.01 | ) | | | (0.07 | ) | | | 14.75 | | | | 18.86 | | | | 1.09 | | | | 0.00 | | | | 1.09 | | | | 0.50 | | | | 4,644.8 | | | | 59.00 | |
| | | | | | | | | | | | | | | | |
2018 | | | 15.37 | | | | 0.09 | 1 | | | (2.93 | ) | | | (2.84 | ) | | | (0.06 | ) | | | 0.00 | | | | 0.00 | | | | (0.06 | ) | | | 12.47 | | | | (18.49 | ) | | | 1.10 | | | | 0.00 | | | | 1.10 | | | | 0.62 | | | | 3,850.0 | | | | 43.27 | |
| | | | | | | | | | | | | | | | |
2017 | | | 10.98 | | | | 0.06 | 1 | | | 4.40 | | | | 4.46 | | | | (0.07 | ) | | | 0.00 | | | | (0.00 | )6 | | | (0.07 | ) | | | 15.37 | | | | 40.63 | | | | 1.10 | | | | 0.00 | | | | 1.10 | | | | 0.47 | | | | 3,842.5 | | | | 30.75 | |
| | | | | | | | | | | | | | | | |
2016 | | | 10.59 | | | | 0.06 | 1 | | | 0.37 | | | | 0.43 | | | | (0.04 | ) | | | 0.00 | | | | 0.00 | | | | (0.04 | ) | | | 10.98 | | | | 4.08 | | | | 1.13 | | | | 0.00 | | | | 1.13 | | | | 0.57 | | | | 1,832.8 | | | | 25.31 | |
| | | | | | | | | | | | | | | | |
2015 | | | 11.94 | | | | 0.06 | 1 | | | (1.37 | ) | | | (1.31 | ) | | | (0.04 | ) | | | 0.00 | | | | 0.00 | | | | (0.04 | ) | | | 10.59 | | | | (10.97 | ) | | | 1.20 | | | | 0.00 | | | | 1.20 | | | | 0.49 | | | | 1,040.9 | | | | 26.34 | |
| | | | | | | | | | | | | | | | |
2014 | | | 11.56 | | | | 0.09 | 1 | | | 0.34 | | | | 0.43 | | | | (0.05 | ) | | | 0.00 | | | | 0.00 | | | | (0.05 | ) | | | 11.94 | | | | 3.75 | 2 | | | 1.27 | | | | (0.02 | ) | | | 1.25 | | | | 0.76 | | | | 697.8 | | | | 23.38 | |
| | | | | | | | | | | | | | | | |
2013 | | | 10.05 | | | | 0.01 | 1 | | | 1.50 | | | | 1.51 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 11.56 | | | | 15.02 | 2 | | | 1.80 | | | | (0.55 | ) | | | 1.25 | | | | 0.05 | | | | 116.0 | | | | 14.68 | |
| | | | | | | | | | | | | | | | |
2012 | | | 8.30 | | | | (0.01 | )1 | | | 1.93 | | | | 1.92 | | | | (0.17 | ) | | | 0.00 | | | | 0.00 | | | | (0.17 | ) | | | 10.05 | | | | 23.22 | 2 | | | 3.37 | | | | (2.12 | ) | | | 1.25 | | | | (0.14 | ) | | | 6.0 | | | | 42.68 | |
|
R6 SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | | |
2021 | | | 19.07 | | | | 0.01 | 1 | | | 0.89 | | | | 0.90 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 19.97 | | | | 4.72 | 3 | | | 1.06 | 4 | | | 0.00 | | | | 1.06 | 4 | | | 0.12 | 4 | | | 16.1 | | | | 14.72 | 3 |
| | | |
Year Ended December 31, | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
2020 | | | 14.75 | | | | (0.03 | )1 | | | 4.35 | | | | 4.32 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 19.07 | | | | 29.29 | | | | 1.09 | | | | 0.00 | | | | 1.09 | | | | (0.18 | ) | | | 13.9 | | | | 55.65 | |
| | | | | | | | | | | | | | | | |
2019 | | | 12.48 | | | | 0.07 | 1 | | | 2.27 | | | | 2.34 | | | | (0.06 | ) | | | 0.00 | | | | (0.01 | ) | | | (0.07 | ) | | | 14.75 | | | | 18.77 | | | | 1.09 | | | | 0.00 | | | | 1.09 | | | | 0.49 | | | | 10.1 | | | | 59.00 | |
| | | | | | | | | | | | | | | | |
2018 | | | 15.38 | | | | 0.10 | 1 | | | (2.94 | ) | | | (2.84 | ) | | | (0.06 | ) | | | 0.00 | | | | 0.00 | | | | (0.06 | ) | | | 12.48 | | | | (18.47 | ) | | | 1.11 | | | | 0.00 | | | | 1.11 | | | | 0.69 | | | | 7.3 | | | | 43.27 | |
| | | | | | | | | | | | | | | | |
2017 | | | 10.99 | | | | 0.07 | 1 | | | 4.39 | | | | 4.46 | | | | (0.07 | ) | | | 0.00 | | | | (0.00 | )6 | | | (0.07 | ) | | | 15.38 | | | | 40.59 | | | | 1.11 | | | | 0.00 | | | | 1.11 | | | | 0.49 | | | | 4.9 | | | | 30.75 | |
| | | | | | | | | | | | | | | | |
20165 | | | 9.94 | | | | 0.05 | 1 | | | 1.04 | | | | 1.09 | | | | (0.04 | ) | | | 0.00 | | | | 0.00 | | | | (0.04 | ) | | | 10.99 | | | | 10.99 | 3 | | | 1.13 | 4 | | | 0.00 | | | | 1.13 | 4 | | | 0.48 | 4 | | | 0.7 | | | | 25.31 | |
| 1 | Based on average shares outstanding. |
| 2 | The total returns would have been lower had certain expenses not been reduced during the period shown. |
| 5 | For the period January 29, 2016 (initial offering of R6 Shares) to December 31, 2016. |
| 6 | Less than $0.01 per share. |
| | |
| See Notes to Financial Statements. | | 65 |
| | |
| Baron Select Funds | | June 30, 2021 |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON GLOBAL ADVANTAGE FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | Supplemental
Data: | |
| | | | | | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($) | | | Net
realized
and
unrealized
gain
(loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gain on
investments
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%) | | | Total
expenses
(%) | | | Less:
Interest
expense
% | | | Operating
expenses
(%) | | | Less:
Reimbursement
of expenses
by Adviser
(%) | | | Net
operating
expenses
(%) | | | Net
investment
income
(loss)
(%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | | | |
2021 | | | 51.34 | | | | (0.30 | )2 | | | 5.29 | | | | 4.99 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 56.33 | | | | 9.72 | 4,6,12 | | | 1.16 | 8 | | | (0.00 | )8,11 | | | 1.16 | 8 | | | (0.01 | )8 | | | 1.15 | 8 | | | (1.15 | )8 | | | 971.2 | | | | 8.47 | 6 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | | | |
2020 | | | 28.68 | | | | (0.44 | )2 | | | 23.10 | | | | 22.66 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 51.34 | | | | 79.01 | 4 | | | 1.17 | | | | 0.00 | | | | 1.17 | | | | (0.02 | ) | | | 1.15 | | | | (1.10 | ) | | | 921.7 | | | | 8.75 | |
| | | | | | | | | | | | | | | | | |
2019 | | | 19.77 | | | | (0.02 | )2 | | | 8.93 | | | | 8.91 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 28.68 | | | | 45.07 | 4 | | | 1.25 | | | | (0.00 | )11 | | | 1.25 | | | | (0.10 | ) | | | 1.15 | | | | (0.08 | ) | | | 174.6 | | | | 19.44 | |
| | | | | | | | | | | | | | | | | |
2018 | | | 20.56 | | | | (0.21 | )2 | | | (0.58 | ) | | | (0.79 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 19.77 | | | | (3.84 | )4 | | | 1.45 | | | | (0.00 | )11 | | | 1.45 | | | | (0.30 | ) | | | 1.15 | | | | (0.94 | ) | | | 35.7 | | | | 19.77 | |
| | | | | | | | | | | | | | | | | |
2017 | | | 13.75 | | | | (0.18 | )2 | | | 6.99 | | | | 6.81 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 20.56 | | | | 49.53 | 4 | | | 2.07 | | | | (0.01 | ) | | | 2.06 | | | | (0.70 | ) | | | 1.36 | | | | (1.01 | ) | | | 18.4 | | | | 27.98 | |
| | | | | | | | | | | | | | | | | |
2016 | | | 13.91 | | | | (0.18 | )2 | | | 0.02 | 10 | | | (0.16 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 13.75 | | | | (1.15 | )4 | | | 3.86 | | | | 0.00 | | | | 3.86 | | | | (2.36 | ) | | | 1.50 | | | | (1.30 | ) | | | 5.0 | | | | 21.48 | |
| | | | | | | | | | | | | | | | | |
2015 | | | 14.20 | | | | (0.11 | )2 | | | (0.14 | ) | | | (0.25 | ) | | | (0.02 | ) | | | (0.02 | ) | | | (0.04 | ) | | | 13.91 | | | | (1.72 | )4 | | | 3.19 | | | | 0.00 | | | | 3.19 | | | | (1.69 | ) | | | 1.50 | | | | (0.75 | ) | | | 6.2 | | | | 25.88 | |
| | | | | | | | | | | | | | | | | |
2014 | | | 13.51 | | | | 0.02 | 2 | | | 0.67 | | | | 0.69 | | | | 0.00 | | | | (0.00 | )3 | | | 0.00 | | | | 14.20 | | | | 5.11 | 4,5 | | | 3.61 | | | | 0.00 | | | | 3.61 | | | | (2.11 | ) | | | 1.50 | | | | 0.18 | | | | 3.9 | | | | 123.51 | |
| | | | | | | | | | | | | | | | | |
2013 | | | 10.41 | | | | (0.02 | )2 | | | 3.12 | | | | 3.10 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 13.51 | | | | 29.78 | 4 | | | 5.51 | | | | 0.00 | | | | 5.51 | | | | (4.01 | ) | | | 1.50 | | | | (0.20 | ) | | | 2.3 | | | | 32.78 | |
| | | | | | | | | | | | | | | | | |
20121 | | | 10.00 | | | | (0.02 | )2 | | | 0.43 | | | | 0.41 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 10.41 | | | | 4.10 | 4,6 | | | 8.35 | 7,8 | | | 0.00 | | | | 8.35 | 7,8 | | | (6.85 | )7,8 | | | 1.50 | 7,8 | | | (0.38 | )7,8 | | | 1.5 | | | | 24.64 | 6 |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | | | |
2021 | | | 52.25 | | | | (0.24 | )2 | | | 5.40 | | | | 5.16 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 57.41 | | | | 9.88 | 4,6,12 | | | 0.91 | 8 | | | (0.00 | )8,11 | | | 0.91 | 8 | | | (0.01 | )8 | | | 0.90 | 8 | | | (0.90 | )8 | | | 1,905.4 | | | | 8.47 | 6 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | | | |
2020 | | | 29.12 | | | | (0.35 | )2 | | | 23.48 | | | | 23.13 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 52.25 | | | | 79.43 | 4 | | | 0.92 | | | | 0.00 | | | | 0.92 | | | | (0.02 | ) | | | 0.90 | | | | (0.85 | ) | | | 1,470.9 | | | | 8.75 | |
| | | | | | | | | | | | | | | | | |
2019 | | | 20.02 | | | | (0.01 | )2 | | | 9.11 | | | | 9.10 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 29.12 | | | | 45.45 | 4 | | | 1.00 | | | | (0.00 | )11 | | | 1.00 | | | | (0.10 | ) | | | 0.90 | | | | (0.03 | ) | | | 212.8 | | | | 19.44 | |
| | | | | | | | | | | | | | | | | |
2018 | | | 20.77 | | | | (0.16 | )2 | | | (0.59 | ) | | | (0.75 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 20.02 | | | | (3.61 | )4 | | | 1.18 | | | | (0.00 | )11 | | | 1.18 | | | | (0.28 | ) | | | 0.90 | | | | (0.71 | ) | | | 49.2 | | | | 19.77 | |
| | | | | | | | | | | | | | | | | |
2017 | | | 13.87 | | | | (0.14 | )2 | | | 7.04 | | | | 6.90 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 20.77 | | | | 49.75 | 4 | | | 1.70 | | | | (0.01 | ) | | | 1.69 | | | | (0.61 | ) | | | 1.08 | | | | (0.77 | ) | | | 24.8 | | | | 27.98 | |
| | | | | | | | | | | | | | | | | |
2016 | | | 14.00 | | | | (0.14 | )2 | | | 0.01 | 10 | | | (0.13 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 13.87 | | | | (0.93 | )4 | | | 3.55 | | | | 0.00 | | | | 3.55 | | | | (2.30 | ) | | | 1.25 | | | | (1.06 | ) | | | 4.6 | | | | 21.48 | |
| | | | | | | | | | | | | | | | | |
2015 | | | 14.28 | | | | (0.07 | )2 | | | (0.15 | ) | | | (0.22 | ) | | | (0.04 | ) | | | (0.02 | ) | | | (0.06 | ) | | | 14.00 | | | | (1.51 | )4 | | | 2.89 | | | | 0.00 | | | | 2.89 | | | | (1.64 | ) | | | 1.25 | | | | (0.47 | ) | | | 5.3 | | | | 25.88 | |
| | | | | | | | | | | | | | | | | |
2014 | | | 13.56 | | | | 0.07 | 2 | | | 0.65 | | | | 0.72 | | | | 0.00 | | | | (0.00 | )3 | | | 0.00 | | | | 14.28 | | | | 5.32 | 4,5 | | | 2.92 | | | | 0.00 | | | | 2.92 | | | | (1.67 | ) | | | 1.25 | | | | 0.48 | | | | 4.1 | | | | 123.51 | |
| | | | | | | | | | | | | | | | | |
2013 | | | 10.42 | | | | 0.00 | 2,3 | | | 3.14 | | | | 3.14 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 13.56 | | | | 30.13 | 4 | | | 4.91 | | | | 0.00 | | | | 4.91 | | | | (3.66 | ) | | | 1.25 | | | | 0.02 | | | | 3.3 | | | | 32.78 | |
| | | | | | | | | | | | | | | | | |
20121 | | | 10.00 | | | | (0.02 | )2 | | | 0.44 | | | | 0.42 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 10.42 | | | | 4.20 | 4,6 | | | 7.33 | 7,8 | | | 0.00 | | | | 7.33 | 7,8 | | | (6.08 | )7,8 | | | 1.25 | 7,8 | | | (0.30 | )7,8 | | | 1.6 | | | | 24.64 | 6 |
|
R6 SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | | | |
2021 | | | 52.28 | | | | (0.24 | )2 | | | 5.40 | | | | 5.16 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 57.44 | | | | 9.87 | 4,6,12 | | | 0.91 | 8 | | | (0.00 | )8,11 | | | 0.91 | 8 | | | (0.01 | )8 | | | 0.90 | 8 | | | (0.90 | )8 | | | 19.0 | | | | 8.47 | 6 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | | | |
2020 | | | 29.14 | | | | (0.32 | )2 | | | 23.46 | | | | 23.14 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 52.28 | | | | 79.41 | 4 | | | 0.92 | | | | 0.00 | | | | 0.92 | | | | (0.02 | ) | | | 0.90 | | | | (0.83 | ) | | | 15.0 | | | | 8.75 | |
| | | | | | | | | | | | | | | | | |
2019 | | | 20.03 | | | | (0.03 | )2 | | | 9.14 | | | | 9.11 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 29.14 | | | | 45.48 | 4 | | | 1.00 | | | | (0.00 | )11 | | | 1.00 | | | | (0.10 | ) | | | 0.90 | | | | (0.10 | ) | | | 6.8 | | | | 19.44 | |
| | | | | | | | | | | | | | | | | |
2018 | | | 20.79 | | | | (0.15 | )2 | | | (0.61 | ) | | | (0.76 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 20.03 | | | | (3.66 | )4 | | | 1.16 | | | | (0.00 | )11 | | | 1.16 | | | | (0.26 | ) | | | 0.90 | | | | (0.69 | ) | | | 4.3 | | | | 19.77 | |
| | | | | | | | | | | | | | | | | |
2017 | | | 13.87 | | | | (0.14 | )2 | | | 7.06 | | | | 6.92 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 20.79 | | | | 49.89 | 4 | | | 1.69 | | | | (0.01 | ) | | | 1.68 | | | | (0.59 | ) | | | 1.09 | | | | (0.75 | ) | | | 0.4 | | | | 27.98 | |
| | | | | | | | | | | | | | | | | |
20169 | | | 14.37 | | | | (0.07 | )2 | | | (0.43 | ) | | | (0.50 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 13.87 | | | | (3.48 | )4,6 | | | 4.11 | 8 | | | 0.00 | | | | 4.11 | 8 | | | (2.87 | )8 | | | 1.24 | 8 | | | (1.52 | )8 | | | 0.1 | | | | 21.48 | |
| 1 | For the period April 30, 2012 (commencement of operations) to December 31, 2012. |
| 2 | Based on average shares outstanding. |
| 3 | Less than $0.01 per share. |
| 4 | The total returns would have been lower had certain expenses not been reduced during the period shown. |
| 5 | The Adviser made a voluntary payment to the Fund in the amount of $47,291 to compensate the Fund for a loss incurred due to a shareholder activity processing error. The impact of this payment increased the Fund’s total return by 0.54%. |
| 7 | Certain fixed expenses incurred by the Fund were not annualized for the period ended December 31, 2012. |
| 9 | For the period August 31, 2016 (initial offering of R6 Shares) to December 31, 2016. |
| 10 | The amount shown for a share outstanding does not correspond with the aggregate realized and unrealized gain (loss) on investments for the period due to the timing of sales and redemptions of Fund shares in relation to fluctuating market values of investments of the Fund. |
| 11 | Interest expense rounds to less than 0.01%. |
| 12 | The Adviser made a voluntary payment to the Fund in the amount of $162,286 to compensate the Fund for a loss incurred due to a shareholder activity processing error. The impact of this payment increased the Fund’s total return by less than 0.01%. |
| | |
| 66 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Select Funds |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON REAL ESTATE INCOME FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | Supplemental
Data: | |
| | | | | | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
($) | | | Net
realized
and
unrealized
gain
(loss)
($) | | | Total from
investment
operations
($) | | | Net
investment
income
($) | | | Net realized
gain on
investments
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%) | | | Total
expenses
(%) | | | Less:
Interest
expense
(%) | | | Operating
expenses
(%) | | | Less:
Reimbursement
of expenses
by Adviser
(%) | | | Net
operating
expenses
(%) | | | Net
investment
income
(%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | | | |
2021 | | | 14.08 | | | | 0.12 | 2 | | | 2.19 | | | | 2.31 | | | | (0.08 | ) | | | 0.00 | | | | (0.08 | ) | | | 16.31 | | | | 16.44 | 3,4 | | | 1.55 | 5 | | | (0.00 | )5,6 | | | 1.55 | 5 | | | (0.50 | )5 | | | 1.05 | 5 | | | 1.50 | 5 | | | 12.8 | | | | 43.33 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | | | |
2020 | | | 11.65 | | | | 0.11 | 2 | | | 2.43 | | | | 2.54 | | | | (0.11 | ) | | | 0.00 | | | | (0.11 | ) | | | 14.08 | | | | 22.02 | 3 | | | 4.40 | | | | 0.00 | | | | 4.40 | | | | (3.35 | ) | | | 1.05 | | | | 0.91 | | | | 2.9 | | | | 41.75 | |
| | | | | | | | | | | | | | | | | |
2019 | | | 8.63 | | | | 0.13 | 2 | | | 3.02 | | | | 3.15 | | | | (0.13 | ) | | | 0.00 | | | | (0.13 | ) | | | 11.65 | | | | 36.67 | 3 | | | 6.87 | | | | 0.00 | | | | 6.87 | | | | (5.82 | ) | | | 1.05 | | | | 1.20 | | | | 1.4 | | | | 52.50 | |
| | | | | | | | | | | | | | | | | |
20181 | | | 10.00 | | | | 0.14 | 2 | | | (1.25 | ) | | | (1.11 | ) | | | (0.26 | ) | | | 0.00 | | | | (0.26 | ) | | | 8.63 | | | | (11.33 | )3 | | | 10.47 | | | | 0.00 | | | | 10.47 | | | | (9.42 | ) | | | 1.05 | | | | 1.43 | | | | 0.4 | | | | 67.39 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | | | |
2021 | | | 14.15 | | | | 0.11 | 2 | | | 2.24 | | | | 2.35 | | | | (0.08 | ) | | | 0.00 | | | | (0.08 | ) | | | 16.42 | | | | 16.64 | 3.4 | | | 1.16 | 5 | | | (0.01 | )5 | | | 1.15 | 5 | | | (0.35 | )5 | | | 0.80 | 5 | | | 1.42 | 5 | | | 60.1 | | | | 43.33 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | | | |
2020 | | | 11.68 | | | | 0.37 | 2 | | | 2.21 | | | | 2.58 | | | | (0.11 | ) | | | 0.00 | | | | (0.11 | ) | | | 14.15 | | | | 22.30 | 3 | | | 3.45 | | | | 0.00 | | | | 3.45 | | | | (2.65 | ) | | | 0.80 | | | | 3.00 | | | | 43.6 | | | | 41.75 | |
| | | | | | | | | | | | | | | | | |
2019 | | | 8.66 | | | | 0.14 | 2 | | | 3.01 | | | | 3.15 | | | | (0.13 | ) | | | 0.00 | | | | (0.13 | ) | | | 11.68 | | | | 36.54 | 3 | | | 5.63 | | | | 0.00 | | | | 5.63 | | | | (4.83 | ) | | | 0.80 | | | | 1.37 | | | | 2.7 | | | | 52.50 | |
| | | | | | | | | | | | | | | | | |
20181 | | | 10.00 | | | | 0.16 | 2 | | | (1.24 | ) | | | (1.08 | ) | | | (0.26 | ) | | | 0.00 | | | | (0.26 | ) | | | 8.66 | | | | (11.03 | )3 | | | 7.18 | | | | 0.00 | | | | 7.18 | | | | (6.38 | ) | | | 0.80 | | | | 1.71 | | | | 2.0 | | | | 67.39 | |
|
R6 SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | | | |
2021 | | | 14.14 | | | | 0.10 | 2 | | | 2.25 | | | | 2.35 | | | | (0.08 | ) | | | 0.00 | | | | (0.08 | ) | | | 16.41 | | | | 16.65 | 3,4 | | | 1.17 | 5 | | | (0.01 | )5 | | | 1.16 | 5 | | | (0.36 | )5 | | | 0.80 | 5 | | | 1.37 | 5 | | | 0.7 | | | | 43.33 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | | | |
2020 | | | 11.67 | | | | 0.11 | 2 | | | 2.47 | | | | 2.58 | | | | (0.11 | ) | | | 0.00 | | | | (0.11 | ) | | | 14.14 | | | | 22.32 | 3 | | | 3.47 | | | | 0.00 | | | | 3.47 | | | | (2.67 | ) | | | 0.80 | | | | 1.06 | | | | 0.6 | | | | 41.75 | |
| | | | | | | | | | | | | | | | | |
2019 | | | 8.66 | | | | 0.14 | 2 | | | 3.00 | | | | 3.14 | | | | (0.13 | ) | | | 0.00 | | | | (0.13 | ) | | | 11.67 | | | | 36.42 | 3 | | | 5.27 | | | | 0.00 | | | | 5.27 | | | | (4.47 | ) | | | 0.80 | | | | 1.36 | | | | 0.4 | | | | 52.50 | |
| | | | | | | | | | | | | | | | | |
20181 | | | 10.00 | | | | 0.20 | 2 | | | (1.28 | ) | | | (1.08 | ) | | | (0.26 | ) | | | 0.00 | | | | (0.26 | ) | | | 8.66 | | | | (11.03 | )3 | | | 7.05 | | | | 0.00 | | | | 7.05 | | | | (6.25 | ) | | | 0.80 | | | | 2.07 | | | | 0.4 | | | | 67.39 | |
| 1 | For the period January 2, 2018 (commencement of operations) to December 31, 2018. |
| 2 | Based on average shares outstanding. |
| 3 | The total returns would have been lower had certain expenses not been reduced during the period shown. |
| 6 | Interest expense rounds to less than 0.01%. |
| | |
| See Notes to Financial Statements. | | 67 |
| | |
| Baron Select Funds | | June 30, 2021 |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON HEALTH CARE FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | Supplemental
Data: | |
| | | | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($) | | | Net
realized
and
unrealized
gain (loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gain on
investments
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%) | | | Operating
expenses
(%) | | | Less:
Reimbursement
of expenses
by Adviser
(%) | | | Net
operating
expenses
(%) | | | Net
investment
income
(loss)
(%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | |
2021 | | | 18.75 | | | | (0.08 | )2 | | | 2.32 | | | | 2.24 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 20.99 | | | | 11.95 | 3,4 | | | 1.25 | 5 | | | (0.15 | )5 | | | 1.10 | 5 | | | (0.77 | )5 | | | 47.1 | | | | 31.12 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | |
2020 | | | 12.86 | | | | (0.09 | )2 | | | 6.17 | | | | 6.08 | | | | 0.00 | | | | (0.19 | ) | | | (0.19 | ) | | | 18.75 | | | | 47.40 | 3 | | | 1.73 | | | | (0.63 | ) | | | 1.10 | | | | (0.60 | ) | | | 26.8 | | | | 35.84 | |
| | | | | | | | | | | | | | | |
2019 | | | 9.51 | | | | (0.06 | )2 | | | 3.41 | | | | 3.35 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 12.86 | | | | 35.23 | 3 | | | 2.80 | | | | (1.70 | ) | | | 1.10 | | | | (0.54 | ) | | | 5.0 | | | | 68.10 | |
| | | | | | | | | | | | | | | |
20181 | | | 10.00 | | | | (0.04 | )2 | | | (0.45 | ) | | | (0.49 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 9.51 | | | | (4.90 | )3,4 | | | 4.94 | 5 | | | (3.84 | )5 | | | 1.10 | 5 | | | (0.60 | )5 | | | 2.8 | | | | 27.30 | 4 |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | |
2021 | | | 18.88 | | | | (0.05 | )2 | | | 2.33 | | | | 2.28 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 21.16 | | | | 12.08 | 3,4 | | | 0.96 | 5 | | | (0.11 | )5 | | | 0.85 | 5 | | | (0.50 | )5 | | | 119.7 | | | | 31.12 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | |
2020 | | | 12.92 | | | | (0.05 | )2 | | | 6.20 | | | | 6.15 | | | | 0.00 | | | | (0.19 | ) | | | (0.19 | ) | | | 18.88 | | | | 47.72 | 3 | | | 1.45 | | | | (0.60 | ) | | | 0.85 | | | | (0.31 | ) | | | 38.6 | | | | 35.84 | |
| | | | | | | | | | | | | | | |
2019 | | | 9.53 | | | | (0.03 | )2 | | | 3.42 | | | | 3.39 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 12.92 | | | | 35.57 | 3 | | | 2.39 | | | | (1.54 | ) | | | 0.85 | | | | (0.28 | ) | | | 9.1 | | | | 68.10 | |
| | | | | | | | | | | | | | | |
20181 | | | 10.00 | | | | (0.02 | )2 | | | (0.45 | ) | | | (0.47 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 9.53 | | | | (4.70 | )3,4 | | | 4.06 | 5 | | | (3.21 | )5 | | | 0.85 | 5 | | | (0.33 | )5 | | | 4.5 | | | | 27.30 | 4 |
|
CLASS C SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | |
2021 | | | 18.87 | | | | (0.05 | )2 | | | 2.33 | | | | 2.28 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 21.15 | | | | 12.08 | 3,4 | | | 0.96 | 5 | | | (0.11 | )5 | | | 0.85 | 5 | | | (0.53 | )5 | | | 5.9 | | | | 31.12 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | |
2020 | | | 12.91 | | | | (0.04 | )2 | | | 6.19 | | | | 6.15 | | | | 0.00 | | | | (0.19 | ) | | | (0.19 | ) | | | 18.87 | | | | 47.76 | 3 | | | 1.44 | | | | (0.59 | ) | | | 0.85 | | | | (0.25 | ) | | | 4.9 | | | | 35.84 | |
| | | | | | | | | | | | | | | |
2019 | | | 9.52 | | | | (0.03 | )2 | | | 3.42 | | | | 3.39 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 12.91 | | | | 35.61 | 3 | | | 2.22 | | | | (1.37 | ) | | | 0.85 | | | | (0.28 | ) | | | 1.3 | | | | 68.10 | |
| | | | | | | | | | | | | | | |
20181 | | | 10.00 | | | | (0.02 | )2 | | | (0.46 | ) | | | (0.48 | ) | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 9.52 | | | | (4.80 | )3,4 | | | 3.14 | 5 | | | (2.29 | )5 | | | 0.85 | 5 | | | (0.32 | )5 | | | 0.7 | | | | 27.30 | 4 |
| 1 | For the period April 30, 2018 (commencement of operations) to December 31, 2018. |
| 2 | Based on average shares outstanding. |
| 3 | The total returns would have been lower had certain expenses not been reduced during the period shown. |
| | |
| 68 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron Select Funds |
FINANCIAL HIGHLIGHTS (Unaudited) (Continued)
BARON FINTECH FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | Supplemental
Data: | |
| | | | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($) | | | Net
realized
and
unrealized
gain on
investments($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gain on
investments
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%) | | | Operating
expenses
(%) | | | Less:
Reimbursement
of expenses
by Adviser
(%) | | | Net
operating
expenses
(%) | | | Net
investment
income
(loss)
(%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | |
2021 | | | 14.69 | | | | (0.06 | )2 | | | 2.28 | | | | 2.22 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 16.91 | | | | 15.11 | 3,4 | | | 1.78 | 5 | | | (0.58 | )5 | | | 1.20 | 5 | | | (0.85 | )5 | | | 8.6 | | | | 1.16 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | |
20201 | | | 10.00 | | | | (0.09 | )2 | | | 4.78 | | | | 4.69 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 14.69 | | | | 46.90 | 3 | | | 3.09 | | | | (1.89 | ) | | | 1.20 | | | | (0.77 | ) | | | 6.4 | | | | 8.12 | |
|
INSTITUTIONAL SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | |
2021 | | | 14.72 | | | | (0.04 | )2 | | | 2.29 | | | | 2.25 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 16.97 | | | | 15.29 | 3,4 | | | 1.31 | 5 | | | (0.36 | )5 | | | 0.95 | 5 | | | (0.59 | )5 | | | 48.0 | | | | 1.16 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | |
20201 | | | 10.00 | | | | (0.07 | )2 | | | 4.79 | | | | 4.72 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 14.72 | | | | 47.20 | 3 | | | 2.43 | | | | (1.48 | ) | | | 0.95 | | | | (0.54 | ) | | | 24.0 | | | | 8.12 | |
|
R6 SHARES | |
|
Six Months Ended June 30, | |
| | | | | | | | | | | | | | | |
2021 | | | 14.73 | | | | (0.04 | )2 | | | 2.28 | | | | 2.24 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 16.97 | | | | 15.21 | 3,4 | | | 1.33 | 5 | | | (0.38 | )5 | | | 0.95 | 5 | | | (0.60 | )5 | | | 5.3 | | | | 1.16 | 4 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | |
20201 | | | 10.00 | | | | (0.06 | )2 | | | 4.79 | | | | 4.73 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 14.73 | | | | 47.30 | 3 | | | 2.33 | | | | (1.38 | ) | | | 0.95 | | | | (0.53 | ) | | | 3.7 | | | | 8.12 | |
| 1 | For the period January 2, 2020 (commencement of operations) to December 31, 2020. |
| 2 | Based on average shares outstanding. |
| 3 | The total returns would have been lower had certain expenses not been reduced during the period shown. |
| | |
| See Notes to Financial Statements. | | 69 |
| | |
| Baron Select Funds | | June 30, 2021 |
FUND EXPENSES (Unaudited)
As a shareholder of the Funds, you incur ongoing expenses. Ongoing expenses include advisory fees, distribution and service (12b-1) fees and other Fund expenses. The information on this page is intended to help you understand your ongoing costs of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The information in the following table is based on an investment of $1,000 invested on January 1, 2021 and held for the six months ended June 30, 2021.
ACTUAL EXPENSES
The table below titled “Based on Actual Total Return” provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading titled “Expenses Paid During the Period.”
BASED ON ACTUAL TOTAL RETURN FOR THE SIX MONTHS ENDED JUNE 30, 20211
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | Actual Total Return | | | Beginning Account Value January 1, 2021 | | | Ending Account Value June 30, 2021 | | | Annualized Expense Ratio | | | Expenses Paid During the Period3 | |
Baron Partners Fund — Retail Shares | | | 4.29 | % | | $ | 1,000.00 | | | $ | 1,042.90 | | | | 1.36 | %2 | | $ | 6.89 | |
Baron Partners Fund — Institutional Shares | | | 4.43 | % | | $ | 1,000.00 | | | $ | 1,044.30 | | | | 1.10 | %2 | | $ | 5.58 | |
Baron Partners Fund — R6 Shares | | | 4.43 | % | | $ | 1,000.00 | | | $ | 1,044.30 | | | | 1.10 | %2 | | $ | 5.58 | |
Baron Focused Growth Fund — Retail Shares | | | 2.40 | % | | $ | 1,000.00 | | | $ | 1,024.00 | | | | 1.32 | % | | $ | 6.62 | |
Baron Focused Growth Fund — Institutional Shares | | | 2.54 | % | | $ | 1,000.00 | | | $ | 1,025.40 | | | | 1.05 | % | | $ | 5.27 | |
Baron Focused Growth Fund — R6 Shares | | | 2.53 | % | | $ | 1,000.00 | | | $ | 1,025.30 | | | | 1.05 | % | | $ | 5.27 | |
Baron International Growth Fund — Retail Shares | | | 10.92 | % | | $ | 1,000.00 | | | $ | 1,109.20 | 4 | | | 1.20 | %5 | | $ | 6.28 | |
Baron International Growth Fund — Institutional Shares | | | 11.04 | % | | $ | 1,000.00 | | | $ | 1,110.40 | 4 | | | 0.95 | %5 | | $ | 4.97 | |
Baron International Growth Fund — R6 Shares | | | 11.05 | % | | $ | 1,000.00 | | | $ | 1,110.50 | 4 | | | 0.95 | %5 | | $ | 4.97 | |
Baron Real Estate Fund — Retail Shares | | | 16.10 | % | | $ | 1,000.00 | | | $ | 1,161.00 | | | | 1.32 | % | | $ | 7.07 | |
Baron Real Estate Fund — Institutional Shares | | | 16.24 | % | | $ | 1,000.00 | | | $ | 1,162.40 | | | | 1.06 | % | | $ | 5.68 | |
Baron Real Estate Fund — R6 Shares | | | 16.24 | % | | $ | 1.000.00 | | | $ | 1,162.40 | | | | 1.06 | % | | $ | 5.68 | |
Baron Emerging Markets Fund — Retail Shares | | | 4.59 | % | | $ | 1,000.00 | | | $ | 1,045.90 | | | | 1.32 | % | | $ | 6.70 | |
Baron Emerging Markets Fund — Institutional Shares | | | 4.67 | % | | $ | 1,000.00 | | | $ | 1,046.70 | | | | 1.06 | % | | $ | 5.38 | |
Baron Emerging Markets Fund — R6 Shares | | | 4.67 | % | | $ | 1,000.00 | | | $ | 1,046.70 | | | | 1.06 | % | | $ | 5.38 | |
Baron Global Advantage Fund — Retail Shares | | | 9.72 | % | | $ | 1,000.00 | | | $ | 1,097.20 | 4 | | | 1.15 | %5 | | $ | 5.98 | |
Baron Global Advantage Fund — Institutional Shares | | | 9.88 | % | | $ | 1,000.00 | | | $ | 1,098.80 | 4 | | | 0.90 | %5 | | $ | 4.68 | |
Baron Global Advantage Fund — R6 Shares | | | 9.87 | % | | $ | 1,000.00 | | | $ | 1,098.70 | 4 | | | 0.90 | %5 | | $ | 4.68 | |
Baron Real Estate Income Fund — Retail Shares | | | 16.44 | % | | $ | 1,000.00 | | | $ | 1,164.40 | 4 | | | 1.05 | %5 | | $ | 5.63 | |
Baron Real Estate Income Fund — Institutional Shares | | | 16.64 | % | | $ | 1,000.00 | | | $ | 1,166.40 | 4 | | | 0.81 | %5 | | $ | 4.35 | |
Baron Real Estate Income Fund — R6 Shares | | | 16.65 | % | | $ | 1,000.00 | | | $ | 1,166.50 | 4 | | | 0.81 | %5 | | $ | 4.35 | |
Baron Health Care Fund — Retail Shares | | | 11.95 | % | | $ | 1,000.00 | | | $ | 1,119.50 | 4 | | | 1.10 | %5 | | $ | 5.78 | |
Baron Health Care Fund — Institutional Shares | | | 12.08 | % | | $ | 1,000.00 | | | $ | 1,120.80 | 4 | | | 0.85 | %5 | | $ | 4.47 | |
Baron Health Care Fund — R6 Shares | | | 12.08 | % | | $ | 1,000.00 | | | $ | 1,120.80 | 4 | | | 0.85 | %5 | | $ | 4.47 | |
Baron FinTech Fund — Retail Shares | | | 15.11 | % | | $ | 1,000.00 | | | $ | 1,151.10 | 4 | | | 1.20 | %5 | | $ | 6.40 | |
Baron FinTech Fund — Institutional Shares | | | 15.29 | % | | $ | 1,000.00 | | | $ | 1,152.90 | 4 | | | 0.95 | %5 | | $ | 5.07 | |
Baron FinTech Fund — R6 Shares | | | 15.21 | % | | $ | 1,000.00 | | | $ | 1,152.10 | 4 | | | 0.95 | %5 | | $ | 5.07 | |
| 1 | Assumes reinvestment of all dividends and capital gain distributions, if any. |
| 2 | Annualized expense ratio for Baron Partners Fund for the six months ended June 30, 2021, includes 1.32%, 1.06% and 1.06% for net operating expenses and 0.04%, 0.04% and 0.04% for interest expense for the Retail, Institutional and R6 Shares, respectively. |
| 3 | Expenses are equal to each share class’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365. |
| 4 | Ending account value assumes the return earned after waiver and would have been lower if a portion of the expenses had not been waived. |
| 5 | Annualized expense ratios are adjusted to reflect fee waiver. |
70
| | |
| June 30, 2021 | | Baron Select Funds |
FUND EXPENSES (Unaudited) (Continued)
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below titled “Based on Hypothetical Total Return” provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account values and expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Funds and other funds. To do so, compare the 5% hypothetical example relating to the Funds with the 5% hypothetical examples that appear in the shareholder reports of other funds.
BASED ON HYPOTHETICAL TOTAL RETURN FOR THE SIX MONTHS ENDED JUNE 30, 2021
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
| | | Hypothetical Annualized Total Return | | | Beginning Account Value January 1, 2021 | | | Ending Account Value June 30, 2021 | | | Annualized Expense Ratio | | | Expenses Paid During the Period3 | |
Baron Partners Fund — Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,018.10 | | | | 1.36 | %2 | | $ | 6.80 | |
Baron Partners Fund — Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.34 | | | | 1.10 | %2 | | $ | 5.51 | |
Baron Partners Fund — R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.34 | | | | 1.10 | %2 | | $ | 5.51 | |
Baron Focused Growth Fund — Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,018.25 | | | | 1.32 | % | | $ | 6.61 | |
Baron Focused Growth Fund — Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.59 | | | | 1.05 | % | | $ | 5.26 | |
Baron Focused Growth Fund — R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.59 | | | | 1.05 | % | | $ | 5.26 | |
Baron International Growth Fund — Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,018.84 | 4 | | | 1.20 | %5 | | $ | 6.01 | |
Baron International Growth Fund — Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,020.08 | 4 | | | 0.95 | %5 | | $ | 4.76 | |
Baron International Growth Fund — R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,020.08 | 4 | | | 0.95 | %5 | | $ | 4.76 | |
Baron Real Estate Fund — Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,018.25 | | | | 1.32 | % | | $ | 6.61 | |
Baron Real Estate Fund — Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.54 | | | | 1.06 | % | | $ | 5.31 | |
Baron Real Estate Fund — R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.54 | | | | 1.06 | % | | $ | 5.31 | |
Baron Emerging Markets Fund — Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,018.25 | | | | 1.32 | % | | $ | 6.61 | |
Baron Emerging Markets Fund — Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1.019.54 | | | | 1.06 | % | | $ | 5.31 | |
Baron Emerging Markets Fund — R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.54 | | | | 1.06 | % | | $ | 5.31 | |
Baron Global Advantage Fund — Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.09 | 4 | | | 1.15 | %5 | | $ | 5.76 | |
Baron Global Advantage Fund — Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,020.33 | 4 | | | 0.90 | %5 | | $ | 4.51 | |
Baron Global Advantage Fund — R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,020.33 | 4 | | | 0.90 | %5 | | $ | 4.51 | |
Baron Real Estate Income Fund — Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.59 | 4 | | | 1.05 | %5 | | $ | 5.26 | |
Baron Real Estate Income Fund — Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,020.78 | 4 | | | 0.81 | %5 | | $ | 4.06 | |
Baron Real Estate Income Fund — R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,020.78 | 4 | | | 0.81 | %5 | | $ | 4.06 | |
Baron Health Care Fund — Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,019.34 | 4 | | | 1.10 | %5 | | $ | 5.51 | |
Baron Health Care Fund — Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,020.58 | 4 | | | 0.85 | %5 | | $ | 4.26 | |
Baron Health Care Fund — R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,020.58 | 4 | | | 0.85 | %5 | | $ | 4.26 | |
Baron FinTech Fund — Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,018.84 | 4 | | | 1.20 | %5 | | $ | 6.01 | |
Baron FinTech Fund — Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,020.08 | 4 | | | 0.95 | %5 | | $ | 4.76 | |
Baron FinTech Fund — R6 Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,020.08 | 4 | | | 0.95 | %5 | | $ | 4.76 | |
| 1 | Assumes reinvestment of all dividends and capital gain distributions, if any. |
| 2 | Annualized expense ratio for Baron Partners Fund for the six months ended June 30, 2021, includes 1.32%, 1.06% and 1.06% for net operating expenses and 0.04%, 0.04% and 0.04% for interest expense for the Retail, Institutional and R6 Shares, respectively. |
| 3 | Expenses are equal to each share class’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365. |
| 4 | Ending account value assumes the return earned after waiver and would have been lower if a portion of the expenses had not been waived. |
| 5 | Annualized expense ratios are adjusted to reflect fee waiver. |
71
| | |
| Baron Select Funds | | June 30, 2021 |
2021 DISCLOSURE REGARDING THE APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS BY THE BOARD OF TRUSTEES (Unaudited)
The Board of Trustees (the “Board”) of Baron Select Funds (the “Trust”) met on May 5, 2021 to discuss the selection of BAMCO, Inc. (the “Adviser”) as the investment adviser and the approval of the investment advisory agreements for Baron Partners Fund, Baron Focused Growth Fund, Baron International Growth Fund, Baron Real Estate Fund, Baron Emerging Markets Fund, Baron Global Advantage Fund, Baron Real Estate Income Fund, Baron Health Care Fund and Baron FinTech Fund (each, a “Fund” and collectively, the “Funds”). The members of the Board who are not “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the Trust (the “Independent Trustees”) met in a separate session to discuss and consider the renewal of the investment advisory agreements for the Funds. Representatives of Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, provided reports to the Board and attended the Board meeting. The Trustees received a substantial amount of information from the Adviser and from Broadridge, and were advised by independent legal counsel. Based on its evaluation of this and other information, the Board, including a majority of the Independent Trustees, approved the continuation of the investment advisory agreements for the Funds for an additional one-year period.
In reaching its determination, the Board considered various factors that it deemed relevant, including the factors listed below.
1. NATURE, EXTENT AND QUALITY OF SERVICES
The Trustees considered the information provided, including, for many, their experience and knowledge gained from their service as Trustees and their experience generally, including the following, which they had considered in past years and remained, in their thinking, material to their consideration:
| • | | Their confidence in the senior personnel, portfolio management, the financial condition of the Adviser and its affiliates and the Adviser’s available resources; |
| • | | The nature, extent and quality of the services provided by the Adviser, including: intensive devotion to research, selection of broker/dealers for Fund portfolio transactions, relationships with and supervision of third party service providers, such as the Funds’ custodian and transfer agent, the quality of shareholder reports, the ability to monitor adherence to investment guidelines and restrictions, the legal, accounting and compliance services provided to the Funds and the support services provided to the Board; |
| • | | The Adviser’s investment principles and processes and the historical performance of the Funds as compared to similar funds managed by other advisers and other funds managed by the Adviser over comparable periods; |
| • | | The advisory fees and total expense ratios of the Funds and comparisons to similar funds managed by other advisers over comparable periods. They observed that, for most of the Funds, while the advisory fee was comparatively higher, the net operating expenses paid by the Funds (total expense ratio) were within the range of those of the funds in their respective peer groups; and |
| • | | Additional services provided by the Adviser. |
The Board concluded that the nature, extent and quality of the services the Adviser provides to each Fund, including performance consistent with its investing principles, supported approval of the investment advisory agreement for each Fund.
2. INVESTMENT PERFORMANCE OF THE FUNDS AND THE ADVISER
As part of its consideration of the investment performance of the Funds and the Adviser, the Board took into account the analyses performed by and discussed with representatives of Broadridge. The Board considered for each Fund, among other information, Broadridge’s comparisons of the expense ratio and contractual advisory fee with those of peer group funds selected by Broadridge and Morningstar category medians. The Board also considered, among other performance information, Broadridge’s comparisons of each Fund’s annualized total return and related risk metrics over one-, three-, five- and ten-year periods, where applicable, against peer group funds and Morningstar category medians. After considering all the information, the Board concluded that the Adviser continued to invest in accordance with its long-standing principles and that each Fund’s performance remained consistent with expectations for the Adviser’s investment style, in light of recent market conditions.
3. COSTS OF SERVICES PROVIDED AND PROFITS TO BE REALIZED BY THE ADVISER
The Board considered comparisons of the advisory fees charged and services provided by the Adviser and its investment adviser affiliate to sub-advised accounts and separately managed accounts. The Board considered that, while the advisory fees for the other clients are the same as, or lower than, the fees for the Funds, the Adviser or its affiliate performs significantly fewer services for those clients compared with those provided by the Adviser to the Funds. The Board also considered a profitability analysis prepared by the Adviser and discussed with the representatives of the Adviser that the Adviser has continued to invest in quality personnel, systems and facilities, and otherwise continued to invest in its business, irrespective of fund flows.
The Board also considered benefits that accrue to the Adviser and its affiliates from their relationship with the Funds. The Board considered the costs of portfolio management, including the types of investments made for the Funds, the personnel and systems necessary for implementation of investment strategies, and the pre-tax profits realized by the Adviser and its affiliates from their relationship with the Funds.
4. ECONOMIES OF SCALE AND BENEFITS TO INVESTORS
The Board considered the extent to which each Fund’s advisory fee reflected economies of scale for the benefit of Fund shareholders, appreciating that the economies of scale analysis is predicated on generally predictable increasing assets and noting the small size of certain Funds and the significant fluctuation in assets in recent years. The Board considered that small- and mid-cap investment strategies require more attention by the Adviser than a strategy that involves other types of investing, particularly as asset size increases. The Board considered that the Adviser was continuing to grow and upgrade its staff and invest in its business. The Board members reiterated their intention to continue to consider the extent of economies of scale, asset growth and the Adviser’s plans to invest further to support the Funds.
The Board concluded that the advisory fee for each Fund was supported by the entirety of the presentation and particularly in light of the services provided as discussed at this meeting.
After due consideration of the above-enumerated factors and other factors it deemed relevant, the Board, including a majority of the Independent Trustees, approved the continuance of each Fund’s investment advisory agreement.
72
| | |
| June 30, 2021 | | Baron Select Funds |
DISCLOSURE REGARDING THE APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT FOR BARON NEW ASIA FUND BY THE BOARD OF TRUSTEES (Unaudited)
The Board of Trustees (the “Board”) of Baron Select Funds (the “Trust”) met on February 4, 2021 (the “February Meeting”) to discuss the selection of BAMCO, Inc. (the “Adviser”) as the investment adviser and the approval of the investment advisory agreement (the “Agreement”) for Baron New Asia Fund (the “Fund”). The members of the Board who are not “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the Trust (the “Independent Trustees”) met in a separate session to discuss and consider the approval of the Agreement. Because, at its May 4, 2020 meeting (the “May Meeting”), the Board had considered the annual review of the Investment Advisory Agreements, Distribution Agreements, and 12b-1 Plans for the other funds the Adviser advises, had received presentations from Broadridge Financial Solutions, Inc., an independent provider of investment company data, and from management about the relevant fees, expenses and services, and, from independent legal counsel, about the legal standards applicable to approval of the Agreement, similar materials were not presented at this meeting upon the Board’s confirmation that they recalled and understood the application to the Fund of the information and the presentations received and the deliberations undertaken. Based on its evaluation of this and other information, the Board, including a majority of the Independent Trustees, approved the Agreement for an initial term of two years.
The Board considered the information presented about the Fund at the February Meeting and the relevant information presented to the Board in connection with the May Meeting, as well as the following, which many of the Board members had considered in past years and remained in their thinking, as material to their consideration:
1. NATURE, EXTENT AND QUALITY OF SERVICES
In respect of their consideration of the nature, extent and quality of proposed services to be provided by the Adviser, the Independent Trustees noted that they had considered the following matters, which are relevant to the services to be provided to the Fund, at the May Meeting:
| • | | Their confidence in the Adviser’s senior personnel, portfolio management, the financial condition of the Adviser and its affiliates and the Adviser’s available resources; |
| • | | The nature, extent, quality and level of long-term performance of the services provided by the Adviser to the other funds the Adviser advises, which were expected to be provided to the Fund, including: intensive devotion to research, relationships with and supervision of third party service providers, such as the custodian and transfer agent, the quality of shareholder reports, the ability to monitor adherence to investment guidelines and restrictions, the legal, accounting and compliance services to be provided to the funds and the support services provided to the Board and the selection of broker/dealers for fund portfolio transactions; |
| • | | The Adviser’s investment principles and processes and the Board members’ general understanding of historical performance of the other funds the Adviser advises as compared to similar funds managed by other advisers; |
| • | | Any additional services provided by the Adviser to the other funds the Adviser advises, which were expected to be provided to the Fund. |
Based on the considerations as described above, the Board concluded that the nature, extent and quality of the services to be provided by the Adviser to the Fund supported approval of the Agreement.
2. COSTS OF SERVICES PROVIDED AND PROFITS TO BE REALIZED BY THE ADVISER
Since the Fund is newly formed, had not commenced operations and the eventual aggregate amount of its assets is uncertain, the Adviser was not able to provide the Board with specific information concerning the cost of services to be provided and the expected profits to be realized by the Adviser and its affiliates from their relationships with the Fund.
The Board considered the proposed advisory fee to the Adviser and the anticipated total expenses of the Fund in light of the services to be provided to the Fund as discussed above.
The Board also referenced discussions at the May Meeting regarding the costs of portfolio management, in light of discussions regarding the types of investments to be made for the Fund and the personnel and systems necessary for implementation of the investment strategies.
The Board concluded that the proposed advisory fee was supported, among other reasons, by the services to be provided.
3. ECONOMIES OF SCALE AND BENEFITS TO INVESTORS
Since the Fund is newly formed, had not commenced operations and the eventual aggregate amount of the Fund’s assets is uncertain, the Adviser was not able to provide the Board with specific information concerning the extent to which economies of scale would be realized as the Fund grows and whether fee levels would reflect such economies of scale, if any. It was agreed that the issue would be revisited no later than when the Board next reviewed the advisory fee in connection with the renewal of the Agreement.
After due consideration, including in executive session, of the above-enumerated factors, among other factors it deemed relevant, the Board, including a majority of the Independent Trustees, approved the Agreement for an initial term of two years.
73
Privacy Notice
The Funds collect nonpublic personal information about you from the following sources:
| ∎ | | Information we receive from you on applications or other forms; |
| ∎ | | Information about your transactions with us, our Adviser or others; and |
| ∎ | | Information we receive from third parties, such as credit reporting agencies. |
“Nonpublic personal information” is private information about you that we obtain in connection with providing a financial product or service to you.
We may share your name and address with other Baron Funds and the Adviser and its affiliates for the purpose of sending you information about our products that we believe may be of interest to you and informing you of our upcoming Baron Investment Conference and for sending required information.
We do not disclose any nonpublic personal information about our customers to anyone, except as permitted or required by law. Examples of permitted disclosures under the law include sharing with companies that work for us to provide you services, such as the Transfer Agent or mailing house. All such companies that act on our behalf are contractually obligated to keep the information that we provide to them confidential and to use the information only to provide the services that we have asked them to perform for you and us.
We restrict access to nonpublic information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to guard your nonpublic personal information.
This privacy notice is also available at all times on the Baron Funds® website, www.BaronFunds.com or by calling 1-800-99BARON.
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212-583-2000
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JUNE 21
Baron Funds
Baron WealthBuilder Fund
Semi-Annual Financial Report
DEAR BARON WEALTHBUILDER FUND SHAREHOLDER:
In this report, you will find unaudited financial statements for Baron WealthBuilder Fund (the “Fund”) for the six months ended June 30, 2021. The U.S. Securities and Exchange Commission (the “SEC”) requires mutual funds to furnish these statements semi-annually to their shareholders. We hope you find these statements informative and useful.
We thank you for choosing to join us as fellow shareholders in Baron Funds. We will continue to work hard to justify your confidence.
Sincerely,
| | | | |
 | |  | |  |
Ronald Baron Chief Executive Officer August 20, 2021 | | Linda S. Martinson Chairman, President and Chief Operating Officer August 20, 2021 | | Peggy Wong Treasurer and Chief Financial Officer August 20, 2021 |
This Semi-Annual Financial Report is for the Baron WealthBuilder Fund. If you are interested in the other series of Baron Select Funds, which contains the Baron Partners Fund, Baron Focused Growth Fund, Baron International Growth Fund, Baron Real Estate Fund, Baron Emerging Markets Fund, Baron Global Advantage Fund, Baron Real Estate Income Fund, Baron Health Care Fund, Baron FinTech Fund, and Baron New Asia Fund, or Baron Investment Funds Trust, which contains the Baron Asset Fund, Baron Growth Fund, Baron Small Cap Fund, Baron Opportunity Fund, Baron Fifth Avenue Growth Fund, Baron Discovery Fund, and Baron Durable Advantage Fund, please visit the Funds’ website at www.BaronFunds.com or contact us at 1-800-99BARON.
The Funds’ Proxy Voting Policy is available without charge and can be found on the Funds’ website at www.BaronFunds.com, by clicking on the “Regulatory Documents” link at the bottom left corner of the homepage or by calling 1-800-99BARON and on the SEC’s website at www.sec.gov. The Funds’ most current proxy voting record, Form N-PX, is also available on the Funds’ website and on the SEC’s website.
The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Form N-PORT reports are available on the SEC’s website at www.sec.gov. Schedules of portfolio holdings current to the most recent quarter are also available on the Funds’ website.
Some of the comments contained in this report are based on current management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. You can identify forward-looking statements by words such as “estimate,” “may,” “expect,” “should,” “could,” “believe,” “plan”, and other similar terms. We cannot promise future returns and our opinions are a reflection of our best judgment at the time this report is compiled.
The views expressed in this report reflect those of BAMCO, Inc. (“BAMCO” or the “Adviser”) only through the end of the period stated in this report. The views are not intended as recommendations or investment advice to any person reading this report and are subject to change at any time without notice based on market and other conditions.
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. For more complete information about Baron Funds, including charges and expenses, call, write or go to www.BaronFunds.com for a prospectus or summary prospectus. Read them carefully before you invest or send money. This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund, unless accompanied or preceded by the Fund’s current prospectus or summary prospectus.
| | |
| Baron WealthBuilder Fund | | June 30, 2021 |
Baron WealthBuilder Fund is an open end, no-load mutual fund that invests only in shares of individual Baron mutual funds ("Baron Funds"). Long-term capital appreciation is its objective. It is not a target date fund.
| | 1. | Baron WealthBuilder Fund’s objective is to provide investors with a diversified portfolio of Baron Funds that will outperform its benchmark index over the long term, although we cannot guarantee it will meet its objective. |
| | 2. | Baron WealthBuilder Fund’s minimum initial investment is $2,000, making it suitable for periodic purchases. |
| | 3. | Baron WealthBuilder Fund has no management fee, but it will indirectly bear its pro-rata share of the expenses of the Baron Funds in which it invests (acquired funds). |
| | 4. | Baron WealthBuilder Fund’s annual operating expenses are capped at 5 bps per year for Institutional Shares and TA Shares (available directly through Baron Funds). Retail Shares operating expenses are capped at 30 bps per year. Portfolio transaction costs, interest, dividend, acquired fund fees and expenses are not subject to the operating expense limitation. |
Several criteria, including our qualitative assessments, are used to continually determine Baron WealthBuilder Fund allocations among Baron Funds.
Among the criteria are: (a) absolute performance; (b) excess performance vs. benchmark; (c) performance standard deviation (a measure of risk); (d) Sharpe ratio (a measure of performance per unit of risk); (e) beta (a measure of a fund’s sensitivity to market movements); (f) alpha (a measure of excess return given level of risk as measured by beta); (g) portfolio turnover; (h) growth rates of portfolio investments; (i) fund size; and (j) manager tenure.
As of June 30, 2021, the five largest Baron Funds represented 59.5% of Baron WealthBuilder Fund’s net assets.
Ronald Baron, CEO of Baron Capital is the lead portfolio manager of Baron WealthBuilder Fund. Michael Baron, Vice President, is the co-portfolio manager.
2
| | |
| June 30, 2021 (Unaudited) | | Baron WealthBuilder Fund |
COMPARISONOFTHECHANGEIN VALUEOF $10,000INVESTMENTIN BARON WEALTHBUILDER FUND (RETAIL SHARES)
INRELATIONTOTHE S&P 500 INDEXANDTHE MSCI ACWI INDEX
| | | | | | | | | | | | | | | | |
| AVERAGE ANNUAL TOTAL RETURNSFORTHE PERIODS ENDED JUNE 30, 2021 | |
| | | Six
Months* | | | One
Year | | | Three
Years | | | Since
Inception
December 29,
2017) | |
Baron WealthBuilder Fund — Retail Shares1,2 | | | 9.25% | | | | 60.90% | | | | 28.12% | | | | 26.22% | |
Baron WealthBuilder Fund — TA Shares1,2 | | | 9.39% | | | | 61.20% | | | | 28.45% | | | | 26.49% | |
Baron WealthBuilder Fund — Institutional Shares1,2 | | | 9.39% | | | | 61.32% | | | | 28.45% | | | | 26.49% | |
S&P 500 Index1 | | | 15.25% | | | | 40.79% | | | | 18.67% | | | | 16.67% | |
MSCI ACWI Index Net1 | | | 12.30% | | | | 39.26% | | | | 14.57% | | | | 12.22% | |
| 1 | The S&P 500 Index measures the performance of 500 widely held large cap U.S. companies. The MSCI ACWI Index is an unmanaged, free float-adjusted market capitalization weighted index reflected in U.S. dollars that measures the equity market performance of large- and mid-cap securities across developed and emerging markets, including the United States. MSCI is the source and owner of the trademarks, service marks and copyrights related to the MSCI Indexes. The Indexes and Baron WealthBuilder Fund are with dividends, which positively impact the performance results. The MSCI ACWI Index is net of foreign withholding taxes. The indexes are unmanaged. The index performance is not Fund performance; one cannot invest directly into an index. |
| 2 | Past performance is not predictive of future performance. The performance data does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. BAMCO, Inc. (“BAMCO” or the “Adviser”) has agreed that, pursuant to a contract expiring on August 29, 2031, unless renewed for another 11-year term, it will reimburse certain expenses of the Fund, limiting net annual operating expenses (portfolio transaction costs, interest, dividend, acquired fund fees and expenses and extraordinary expense are not subject to the operating expense limitation) to 0.30% of average daily net assets of Retail Shares, 0.05% of average daily net assets of Institutional shares and 0.05% of average daily net assets of TA shares, without which performance would have been lower. |
3
| | |
| Baron WealthBuilder Fund (Unaudited) | | June 30, 2021 |
COUNTRY EXPOSURESOF BARON UNDERLYING FUNDSASOF JUNE 30, 2021
| | | | |
| | | Percent of
Net Assets | |
United States | | | 82.7% | |
China | | | 3.4% | |
United Kingdom | | | 2.2% | |
Netherlands | | | 1.6% | |
Israel | | | 1.4% | |
Canada | | | 1.3% | |
India | | | 1.3% | |
Brazil | | | 0.7% | |
Argentina | | | 0.5% | |
Sweden | | | 0.5% | |
Other | | | 3.5% | |
Cash and Cash Equivalents | | | 0.9% | |
| |
| | | | 100.0% | |
SECTOR EXPOSURESOF BARON UNDERLYING FUNDSASOF JUNE 30, 2021†
(as a percentage of net assets)
MANAGEMENT’S DISCUSSIONOF FUND PERFORMANCE
For the six-month period ended June 30, 2021, Baron WealthBuilder Fund1 appreciated 9.25%, underperforming the S&P 500 Index, which increased 15.25%.
Baron WealthBuilder Fund is a diversified fund that invests exclusively in other Baron mutual funds. At any given time, it invests in the securities of a select number of Baron mutual funds representing specific investment strategies. The Fund can invest in funds holding U.S. and international stocks; small-cap, small- to mid-cap, mid-cap, large-cap, all-cap stocks; and sector stocks. Baron WealthBuilder Fund normally invests in a variety of domestic and international equity funds. It seeks to invest in businesses it believes have significant opportunities for growth, sustainable competitive advantages, exceptional management, and an attractive valuation. Of course, there can be no assurance that we will be successful in achieving the Fund’s investment goals.
While equity markets continued their upward climb through the first half of 2021, beneath the surface, a major rotation took place. The “recovery play” dominated at first, with stocks hit hard during the pandemic along with cyclical, more speculative stocks peaking mid-period as pent-up demand met massive policy stimulus, positive vaccine developments, and the reopening of the economy. Secular growth stocks came back in favor later in the period, led by large-cap technology stocks. The economy continued to grow as the effects of the pandemic receded, and growth appeared likely to stay solid in the near term. However, global inflation accelerated significantly, both in goods and wages, causing investor concerns around whether policy was too stimulative, the Federal Reserve and other central banks needed to change course, and interest rates would continue to rise.
On a sector basis, Health Care, Information Technology, and Consumer Discretionary contributed the most. No sector detracted.
On a country basis, the U.S., U.K., and Canada contributed the most. China and Brazil detracted the most.
Baron Asset Fund and Baron Growth Fund contributed the most to performance.
No Fund detracted in the period.
We do not invest based on our insights into macroeconomic, political, or, more recently, public health issues. Nevertheless, we are optimistic that near-term business conditions seem favorable for our investments — vaccines seem to be highly effective, governments are loosening restrictions, continued fiscal stimulus seems likely, and interest rates remain below historic levels. While inflation is now on the table, the Federal Reserve appears to believe it to be a transitory result of pandemic-related supply and labor constraints and has pledged to keep rates low for the near term.
| † | Sector levels are provided from the Global Industry Classification Standard (“GICS”), developed and exclusively owned by MSCI, Inc. and Standard & Poor’s Financial Services LLC, unless otherwise stated that they have been reclassified or classified by the Adviser. All GICS data is provided “as is” with no warranties. |
| * | Represents less than 0.05% of net assets. |
| 1 | Performance information reflects results of the Retail Shares. |
4
| | |
| June 30, 2021 | | Baron WealthBuilder Fund |
STATEMENT OF NET ASSETS (Unaudited)
| | | | | | | | | | | | |
| Shares | | Cost | | | Value | |
| Affiliated Mutual Funds (100.02%) | |
|
| Small Cap Funds (29.40%) | |
| | 490,875 | | | Baron Discovery Fund — Institutional Shares | | $ | 13,771,547 | | | $ | 19,468,120 | |
| | 466,216 | | | Baron Growth Fund — Institutional Shares | | | 43,600,621 | | | | 55,218,662 | |
| | 1,222,140 | | | Baron Small Cap Fund — Institutional Shares | | | 42,940,992 | | | | 52,014,269 | |
| | | | | | | | | | | | |
| | Total Small Cap Funds | | | 100,313,160 | | | | 126,701,051 | |
| | | | | | | | | | | | |
|
| Small to Mid Cap Funds (3.97%) | |
| | 374,912 | | | Baron Focused Growth Fund — Institutional Shares | | | 9,740,340 | | | | 17,129,716 | |
| | | | | | | | | | | | |
|
| Mid Cap Funds (13.06%) | |
| | 444,274 | | | Baron Asset Fund — Institutional Shares | | | 42,726,858 | | | | 56,267,352 | |
| | | | | | | | | | | | |
|
| Large Cap Funds (8.02%) | |
| | 412,403 | | | Baron Durable Advantage Fund — Institutional Shares | | | 5,848,017 | | | | 7,530,471 | |
| | 468,664 | | | Baron Fifth Avenue Growth Fund — Institutional Shares | | | 19,130,218 | | | | 27,013,769 | |
| | | | | | | | | | | | |
| | Total Large Cap Funds | | | 24,978,235 | | | | 34,544,240 | |
| | | | | | | | | | | | |
|
| All Cap Funds (20.98%) | |
| | 569,023 | | | Baron Opportunity Fund — Institutional Shares | | | 16,699,528 | | | | 26,630,274 | |
| | 361,386 | | | Baron Partners Fund — Institutional Shares | | | 26,935,653 | | | | 63,795,466 | |
| | | | | | | | | | | | |
| | Total All Cap Funds | | | 43,635,181 | | | | 90,425,740 | |
| | | | | | | | | | | | |
|
| International Funds (13.27%) | |
| | 881,779 | | | Baron Emerging Markets Fund — Institutional Shares | | | 14,420,121 | | | | 17,591,498 | |
| | 507,935 | | | Baron Global Advantage Fund — Institutional Shares | | | 20,572,640 | | | | 29,160,574 | |
| | 289,454 | | | Baron International Growth Fund — Institutional Shares | | | 7,989,473 | | | | 10,449,286 | |
| | | | | | | | | | | | |
| | Total International Funds | | | 42,982,234 | | | | 57,201,358 | |
| | | | | | | | | | | | |
|
| Sector Funds (11.32%) | |
| | 594,431 | | | Baron FinTech Fund — Institutional Shares | | | 7,994,541 | | | | 10,087,487 | |
| | 562,362 | | | Baron Health Care Fund — Institutional Shares | | | 9,645,601 | | | | 11,899,578 | |
| | 489,171 | | | Baron Real Estate Fund — Institutional Shares | | | 15,693,400 | | | | 20,481,574 | |
| | 383,448 | | | Baron Real Estate Income Fund — Institutional Shares | | | 6,168,973 | | | | 6,296,212 | |
| | | | | | | | | | | | |
| | Total Sector Funds | | | 39,502,515 | | | | 48,764,851 | |
| | | | | | | | | | | | |
| | |
| | Total Affiliated Investments (100.02%) | | $ | 303,878,523 | | | | 431,034,308 | |
| | | | | | | | | | | | |
| |
| | Liabilities Less Cash and Other Assets (-0.02%) | | | | (77,545 | ) |
| | | | | | | | | | | | |
| |
| | Net Assets | | | $ | 430,956,763 | |
| | | | | | | | | | | | |
| |
| | Retail Shares (Equivalent to $21.38 per share based on 3,855,429 shares outstanding) | | | $ | 82,430,487 | |
| | | | | | | | | | | | |
| |
| | TA Shares (Equivalent to $21.55 per share based on 1,569,975 shares outstanding) | | | $ | 33,825,450 | |
| | | | | | | | | | | | |
| |
| | Institutional Shares (Equivalent to $21.55 per share based on 14,603,094 shares outstanding) | | | $ | 314,700,826 | |
| | | | | | | | | | | | |
| % | Represents percentage of net assets. |
| | All Affiliated Mutual Funds are Level 1. |
| | |
| See Notes to Financial Statements. | | 5 |
| | |
| Baron WealthBuilder Fund | | June 30, 2021 |
STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
| | | | |
Assets: | | | | |
Investments in Affiliated Mutual Funds, at value* | | $ | 431,034,308 | |
Receivable for shares sold | | | 980,968 | |
Prepaid expenses | | | 2,235 | |
| | | | |
| | | 432,017,511 | |
| | | | |
Liabilities: | | | | |
Due to custodian bank | | | 453,404 | |
Payable for securities purchased | | | 413,671 | |
Payable for shares redeemed | | | 113,893 | |
Distribution fees payable (Note 4) | | | 894 | |
Accrued expenses and other payables | | | 78,886 | |
| | | | |
| | | 1,060,748 | |
| | | | |
Net Assets | | $ | 430,956,763 | |
| | | | |
Net Assets consist of: | | | | |
Paid-in capital | | $ | 296,268,610 | |
Distributable earnings/(losses) | | | 134,688,153 | |
| | | | |
Net Assets | | $ | 430,956,763 | |
| | | | |
Retail Shares: | | | | |
Net Assets | | $ | 82,430,487 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 3,855,429 | |
| | | | |
Net Asset Value and Offering Price Per Share | | $ | 21.38 | |
| | | | |
TA Shares: | | | | |
Net Assets | | $ | 33,825,450 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 1,569,975 | |
| | | | |
Net Asset Value and Offering Price Per Share | | $ | 21.55 | |
| | | | |
Institutional Shares: | | | | |
Net Assets | | $ | 314,700,826 | |
Shares Outstanding ($0.01 par value; indefinite shares authorized) | | | 14,603,094 | |
| | | | |
Net Asset Value and Offering Price Per Share | | $ | 21.55 | |
| | | | |
| |
*Investments in Affiliated Mutual Funds, at cost | | $ | 303,878,523 | |
| | | | |
| | |
| 6 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron WealthBuilder Fund |
STATEMENT OF OPERATIONS (Unaudited)
| | | | |
| | | For the Six
Months Ended
June 30,
2021 | |
Investment income: | | | | |
Income: | | | | |
Dividends from Affiliated Mutual Funds | | $ | 14,383 | |
| | | | |
Total income | | | 14,383 | |
| | | | |
Expenses: | | | | |
Distribution fees — Retail Shares (Note 4) | | | 82,494 | |
Shareholder servicing agent fees and expenses — Retail Shares | | | 1,650 | |
Shareholder servicing agent fees and expenses — TA Shares | | | 992 | |
Shareholder servicing agent fees and expenses — Institutional Shares | | | 6,048 | |
Reports to shareholders | | | 23,100 | |
Registration and filing fees | | | 49,234 | |
Custodian and fund accounting fees | | | 27,723 | |
Trustee fees and expenses (Note 4) | | | 5,616 | |
Administration fees | | | 22,263 | |
Insurance expense | | | 1,336 | |
Line of credit fees | | | 2,754 | |
Professional fees | | | 6,086 | |
Miscellaneous expenses | | | 2,163 | |
| | | | |
Total operating expenses | | | 231,459 | |
| | | | |
Interest expense on borrowings | | | 180 | |
| | | | |
Total expenses | | | 231,639 | |
Reimbursement of expenses by Adviser — Retail Shares (Note 4) | | | (11,962 | ) |
Reimbursement of expenses by Adviser — TA Shares (Note 4) | | | (7,829 | ) |
Reimbursement of expenses by Adviser — Institutional Shares (Note 4) | | | (42,274 | ) |
| | | | |
Net expenses | | | 169,574 | |
| | | | |
Net investment income (loss) | | | (155,191 | ) |
| | | | |
Realized and unrealized gain (loss) on investments: | | | | |
Net realized gain on Affiliated Mutual Funds sold | | | 65,051 | |
Change in net unrealized appreciation (depreciation) of | | | | |
Affiliated Mutual Funds | | | 31,322,110 | |
| | | | |
Net gain (loss) on investments | | | 31,387,161 | |
| | | | |
Net increase (decrease) in net assets resulting from operations | | $ | 31,231,970 | |
| | | | |
| | |
| See Notes to Financial Statements. | | 7 |
| | |
| Baron WealthBuilder Fund | | June 30, 2021 |
STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
| | | | | | | | |
| | | For the Six
Months Ended
June 30,
2021 | | | For the Year
Ended
December 31,
2020 | |
Increase (Decrease) in Net Assets: | | | | | | | | |
Operations: | | | | | | | | |
Net investment income (loss) | | $ | (155,191) | | | $ | (108,459) | |
Net realized gain on Affiliated Mutual Funds | | | 65,051 | | | | 9,069,136 | |
Change in net unrealized appreciation (depreciation) of Affiliated Mutual Funds | | | 31,322,110 | | | | 81,205,696 | |
| | | | | | | | |
Increase (decrease) in net assets resulting from operations | | | 31,231,970 | | | | 90,166,373 | |
| | | | | | | | |
Distributions to shareholders from: | | | | | | | | |
Distributable earnings — Retail Shares | | | — | | | | (378,655 | ) |
Distributable earnings — TA Shares | | | — | | | | (500,550 | ) |
Distributable earnings — Institutional Shares | | | — | | | | (1,966,011 | ) |
| | | | | | | | |
Decrease in net assets from distributions to shareholders | | | — | | | | (2,845,216 | ) |
| | | | | | | | |
Capital share transactions: | | | | | | | | |
Proceeds from the sale of shares — Retail Shares | | | 42,371,192 | | | | 36,161,463 | |
Proceeds from the sale of shares — TA Shares | | | 7,305,862 | | | | 8,711,001 | |
Proceeds from the sale of shares — Institutional Shares | | | 114,324,529 | | | | 49,693,821 | |
Net asset value of shares issued in reinvestment of distributions — Retail Shares | | | — | | | | 378,140 | |
Net asset value of shares issues in reinvestment of distribution — TA Shares | | | — | | | | 500,142 | |
Net asset value of shares issued in reinvestment of distributions — Institutional Shares | | | — | | | | 1,940,053 | |
Cost of shares redeemed — Retail Shares | | | (9,891,184 | ) | | | (7,798,920 | ) |
Cost of shares redeemed — TA Shares | | �� | (20,146,118 | ) | | | (1,575,827 | ) |
Cost of shares redeemed — Institutional Shares | | | (6,857,790 | ) | | | (23,763,269 | ) |
| | | | | | | | |
Increase (decrease) in net assets derived from capital share transactions | | | 127,106,491 | | | | 64,246,604 | |
| | | | | | | | |
Net increase (decrease) in net assets | | | 158,338,461 | | | | 151,567,761 | |
| | | | | | | | |
Net Assets: | | | | | | | | |
Beginning of period | | | 272,618,302 | | | | 121,050,541 | |
| | | | | | | | |
End of period | | $ | 430,956,763 | | | $ | 272,618,302 | |
| | | | | | | | |
Capital share transactions — Retail Shares | | | | | | | | |
Shares sold | | | 2,067,076 | | | | 2,403,435 | |
Shares issued in reinvestment of distributions | | | — | | | | 23,277 | |
Shares redeemed | | | (486,132 | ) | | | (636,737 | ) |
| | | | | | | | |
Net increase (decrease) | | | 1,580,944 | | | | 1,789,975 | |
| | | | | | | | |
Capital share transactions — TA Shares | | | | | | | | |
Shares sold | | | 354,302 | | | | 584,854 | |
Shares issued in reinvestment of distributions | | | — | | | | 30,868 | |
Shares redeemed | | | (1,016,803 | ) | | | (123,288 | ) |
| | | | | | | | |
Net increase (decrease) | | | (662,501 | ) | | | 492,434 | |
| | | | | | | | |
Capital share transactions — Institutional Shares | | | | | | | | |
Shares sold | | | 5,590,962 | | | | 3,293,845 | |
Shares issued in reinvestment of dividends | | | — | | | | 119,461 | |
Shares redeemed | | | (331,931 | ) | | | (1,704,041 | ) |
| | | | | | | | |
Net increase (decrease) | | | 5,259,031 | | | | 1,709,265 | |
| | | | | | | | |
| | |
| 8 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron WealthBuilder Fund |
NOTES TO FINANCIAL STATEMENT (Unaudited)
1. ORGANIZATION
Baron Select Funds (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company established as a Delaware statutory trust on April 30, 2003, and accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services — Investment Companies. The Trust currently offers 11 series. This report covers only the Baron WealthBuilder Fund (the “Fund”). The Fund’s investment objective is capital appreciation. The Fund is a diversified fund that invests, at any given time, in the securities of a select number of Baron mutual funds (the “Underlying Funds”), representing specific investment strategies. The Fund normally invests in a variety of Baron domestic and international equity funds managed by BAMCO, Inc. (“BAMCO” or the “Adviser”). The Fund can invest in Underlying Funds holding U.S. and international stocks; small-cap, small- to mid-cap, large-cap, all-cap stocks; and specialty stocks. The Adviser decides how much of the Fund’s assets to allocate to Underlying Funds based on the outlook for, and on the relative valuations of, the Underlying Funds and the various markets in which they invest. For information on the Underlying Funds, please refer to the Prospectuses and Statements of Additional Information of the Underlying Funds. Also, information on the Underlying Funds is available at www.BaronFunds.com.
The Fund offers Retail Shares, TA Shares and Institutional Shares. Each class of shares differs only in its ongoing fees, expenses and eligibility requirements. Retail Shares are offered to all investors but are not available through the Fund’s transfer agent. TA Shares are available only to investors who purchase shares directly through the Fund’s transfer agent. TA Shares do not charge a 12b-1 fee and no revenue sharing, sub-transfer agency or record-keeping service payments are made by or in respect of TA Shares. Institutional Shares are for investments in the amount of $1 million or more. Institutional Shares are intended for certain financial intermediaries that offer shares of the Fund through fee-based platforms, retirement platforms or other platforms. Each class of shares has equal rights to earnings and assets, except that each class bears different expenses for distribution and shareholder servicing. The Fund’s investment income, realized and unrealized gains or losses on investments, and expenses other than those attributable to a specific class are allocated to each class based on its relative net assets. Each class of shares has exclusive voting rights with respect to matters that affect just that class.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the Fund. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the period. Actual results could differ from those estimates. Events occurring subsequent to the date of the Statement of Assets and Liabilities and through the date of issuance of the financial statements have been evaluated for adjustment to or disclosure in the financial statements.
a) Security Valuation. The Fund’s share price or net asset value (“NAV”) is calculated as of the scheduled close of the regular trading session (usually 4 p.m. E.T. or such other time as of which the Fund’s NAV is calculated (the “NAV Calculation Time”)) on the New York Stock Exchange (the “Exchange”) on any day the Exchange is scheduled to be open. Investments in the Underlying Funds are valued at their closing NAV per share on the day of valuation.
Portfolio securities held by the Underlying Funds traded on any national stock exchange are valued based on the last sale price on the exchange where such shares are principally traded. For securities traded on NASDAQ, the Underlying Funds use the NASDAQ Official Closing Price. If there are no sales on a given day, the value of the security may be the average of the most recent bid and asked quotations on such exchange or the last sale price from a prior day. Where market quotations are not readily available, or, if in the Adviser’s judgment, they do not accurately reflect the fair value of a security held by one of the Underlying Funds, or an event occurs after the market close but before the Underlying Funds are priced that materially affects the value of a security, the security will be valued by the Adviser using policies and procedures approved by the Board of Trustees (the “Board”). Some of the more common reasons that may necessitate that a security held by one of the Underlying Funds be valued using “fair value” pricing may include, but are not limited to: trading of the security has been halted or suspended; or the security has not been traded for an extended period of time. The Adviser has a Fair Valuation Committee (the “Committee”) comprised of senior management representatives and the Committee reports to the Board every quarter. Factors the Committee may consider when valuing a security include whether a current price is stale, there is recent news, the security is thinly traded, transactions are infrequent, or quotations are genuine. There can be no guarantee, however, that a fair valuation used by the Underlying Funds on any given day will more accurately reflect the market value of an investment than the closing price of such investment in its market. U.S. Government obligations, money market instruments, and other debt instruments held by the Underlying Funds with a remaining maturity of 60 days or less are generally valued at amortized cost, which approximates fair value. Debt instruments having a greater remaining maturity will be valued on the basis of prices obtained from a pricing service approved by the Board or at the mean of the bid and ask prices from the dealer maintaining an active market in that security. The value of the Underlying Funds’ investments in convertible bonds/convertible preferred stocks is determined primarily by obtaining valuations from independent pricing services based on readily available bid quotations or, if quotations are not available, by methods which include various considerations such as yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; and general market conditions. Other inputs used by an independent pricing service to value convertible bonds/convertible preferred stocks generally include underlying stock data, conversion premiums, listed bond and preferred stock prices and other market information which may include benchmark curves, trade execution data, sensitivity analysis, when available, or an estimated value, calculated based on the price of the underlying common share on the valuation date adjusted for accrued and unpaid dividends. Open-end investment companies, including securities lending collateral invested in registered investment company money market funds, are valued at their NAV each day.
Non-U.S. equity securities held by the Underlying Funds traded on foreign securities exchanges are generally valued using an independent pricing vendor that provides daily fair value adjustment factors based on information such as local closing price, relevant general and sector indexes, currency fluctuations, and depositary receipts, as applicable. Securities valued using such adjustment factors are classified as Level 2 in the fair value hierarchy. The models of the independent pricing vendor generate an adjustment factor for each security, which is applied to the local closing price to adjust it for post-closing market movements up to the time the Underlying Funds are valued and translated into U.S. dollars. If the vendor does not provide an adjustment factor for a security, the security is valued based on its most recent local closing price and translated into U.S. dollars. The Adviser may also fair value securities in other situations, for example, when a particular foreign market is closed but the Underlying Funds are open. Other mutual funds may adjust the prices of their securities by different amounts.
9
| | |
| Baron WealthBuilder Fund | | June 30, 2021 |
NOTES TO FINANCIAL STATEMENT (Unaudited) (Continued)
2. SIGNIFICANT ACCOUNTING POLICIES (Continued)
b) Securities Transactions, Investment Income and Expenses. Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on an identified cost basis for financial reporting and federal income tax purposes. Dividend income and capital gain distributions from the Underlying Funds are recognized on the ex-dividend date and interest income is recognized on an accrual basis. Dividends received from Underlying Funds are reflected as dividend income; capital gain distributions as realized gains. The Fund is charged for those expenses directly attributable to the Fund, such as distribution and transfer agency fees. Expenses that are not directly attributable to the Fund are typically allocated among the Baron Funds in proportion to their respective net assets.
Expenses included in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses associated with the Underlying Funds. Because Underlying Funds have varied expenses and fee levels and the Fund may own different proportion of Underlying Funds at different times, the amount of fees and expenses incurred indirectly by the Fund will vary.
c) Single Issuer. Single issuer risk is the possibility that factors specific to an issuer to which an Underlying Fund is exposed will affect the market prices of the issuer’s securities and therefore the NAV of the Underlying Fund. Due to the size of Baron Partners Fund’s and Baron Focused Growth Fund’s investments in Tesla, Inc. (“Tesla”), 41% and 32%, respectively, of these Underlying Funds’ net assets as of June 30, 2021, the NAVs of these Underlying Funds will be materially impacted by the price of Tesla stock. The Fund’s indirect proportional ownership of Tesla is $30,769,251, which represents 7.1% of the Fund’s net assets as of June 30, 2021. The financial statements of the Underlying Funds are available at www.BaronFunds.com.
d) Non-Diversified Portfolio. Certain Underlying Funds are non-diversified, which means they will likely have a greater percentage of their assets in a single issuer than a diversified fund. As a result, a non-diversified fund will likely invest a greater percentage of its assets in fewer issuers, and the performance of those issuers may have a greater effect on the Underlying Fund’s performance (and consequently the Fund’s performance) compared to a diversified fund. Thus, a non-diversified fund is more likely to experience significant fluctuations in value, exposing the Underlying Fund (and consequently the Fund) to a greater risk of loss in any given period than a diversified fund. Additionally, non-diversified funds may encounter difficulty liquidating securities.
e) Industry Concentration. From time to time, market fluctuations in the value of an Underlying Fund’s investments, combined with an Underlying Fund’s non-diversified portfolio, may result in an Underlying Fund being concentrated in the securities of a single issuer or a small number of issuers, including in a particular industry. As a result, this Underlying Fund will be particularly exposed to the risks of that company or industry relative to the risk exposure of investment companies holding a diversified portfolio of securities or those that seek to maintain near-index weightings in their portfolio securities. Accordingly, in those cases, an Underlying Fund will be disproportionately exposed to the market conditions, interest rates, and economic, regulatory, or financial developments that significantly affect that company or industry. For example, due to the size of Baron Partners Fund’s and Baron Focused Growth Fund’s investments in Tesla, which represent about 41% and 32%, respectively, of these Underlying Funds’ net assets as of June 30, 2021, these Underlying Funds will be more adversely impacted by negative developments affecting the automotive and energy industries, as well as governmental environmental regulations.
f) Federal Income Taxes. The Fund intends to meet the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute to its shareholders substantially all of its net investment income and any net realized capital gains at least annually. The Fund will not be subject to federal or state income taxes to the extent that it qualifies as regulated investment companies and substantially all of its income is distributed.
g) Distributions to Shareholders. Income and capital gain distributions to shareholders are determined in accordance with income tax regulations which may differ from GAAP. These differences are primarily due to differing treatments for net investment loss and wash sale losses deferred.
h) Commitments and Contingencies. In the normal course of business, the Fund may enter into contracts and agreements that contain a variety of representations and warranties, which provide general indemnification. The maximum exposure to the Fund under these agreements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred.
i) Cash and Cash Equivalents. The Fund considers all short term liquid investments with a maturity of three months or less when purchased to be cash equivalents.
3. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities, other than short term securities, for the six months ended June 30, 2021 were as follows:
| | | | | | | | |
| | |
| Fund | | Purchases | | | Sales | |
Baron WealthBuilder Fund | | $ | 127,605,615 | | | $ | 634,791 | |
4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
a) Investment Advisory Fees. The Adviser, a wholly owned subsidiary of Baron Capital Group, Inc. (“BCG”), serves as investment adviser to the Fund and the Underlying Funds. The Adviser will not be paid a management fee for performing investment management services for the Fund. However, the Adviser receives management fees for managing the Underlying Funds. See the Underlying Funds’ Prospectuses or Statements of Additional Information for specific fees. The Adviser is contractually obligated to reimburse certain expenses of the Fund so that its net annual operating expenses (excluding acquired fund fees and expenses, portfolio transaction costs, interest, dividend and extraordinary expenses) are limited to 0.30% of average daily net assets of Retail Shares, 0.05% of average daily net assets of TA Shares and 0.05% of average daily net assets of Institutional Shares.
b) Distribution Fees. Baron Capital, Inc. (“BCI”), a wholly owned subsidiary of BCG, is a registered limited purpose broker-dealer and the distributor of the Fund’s shares. The Fund is authorized to pay BCI a distribution fee payable monthly pursuant to a distribution plan under Rule 12b-1 of the 1940 Act equal to 0.25% per annum of the Retail Shares’ average daily net assets.
c) Trustee Fees. Certain Trustees of the Fund are interested persons (as defined by the 1940 Act) of the Trust. None of these Trustees received compensation for his or her services as a Trustee of the Fund. None of the Fund’s officers received compensation from the Fund for their services as an officer.
10
| | |
| June 30, 2021 | | Baron WealthBuilder Fund |
NOTES TO FINANCIAL STATEMENT (Unaudited) (Continued)
4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES (Continued)
d) Fund Accounting and Administration Fees. The Fund has entered into an agreement with State Street Bank and Trust Company (“State Street”) to perform accounting and certain administrative services. State Street is compensated for fund accounting services based on a percentage of the Fund’s net assets, plus fixed annual fees for the administrative services.
5. LINE OF CREDIT
Baron WealthBuilder Fund, together with other funds in Baron Select Funds (except Baron Partners Fund) and Baron Investment Funds Trust, participate in a committed line of credit agreement with State Street to be used for temporary purposes, primarily for financing redemptions. Each fund may borrow up to the lesser of $200 million or the maximum amount each fund may borrow under the 1940 Act, the limitations included in each fund’s prospectus, or any limit or restriction under any law or regulation to which each fund is subject or any agreement to which each fund is a party; provided that the aggregate outstanding principal amount of all loans to any of the funds may not exceed $200 million. Interest is charged to each fund, based on its borrowings, at a rate per annum equal to the higher of the Overnight Bank Funding Rate plus 0.10% and the Overnight Federal Funds Rate plus 0.10%; plus a margin of 1.00%. An upfront fee of 0.05% is incurred on the commitment amount and a commitment fee of 0.20% per annum is incurred on the unused portion of the line of credit. Both fees are allocated to the participating funds based on their relative net assets.
During the six months ended June 30, 2021, Baron WealthBuilder Fund had borrowings under the line of credit and incurred interest expense of $180. For the 3 days during which there were borrowings, Baron WealthBuilder Fund had an average daily balance on the line of credit of $1.8 million at a weighted average interest rate of 1.22%.
6. ASSET ALLOCATION AND RISKS OF INVESTING IN THE UNDERLYING FUNDS
The Fund’s ability to meet its investment objective depends largely upon selecting the best mix of Underlying Funds. The selection of the Underlying Funds and the allocation of the Fund’s assets among the various market sectors could cause the Fund to underperform in comparison to other funds with a similar investment objective. In addition, each of the Underlying Funds has its own investment risks, and those risks can affect the value of the Fund’s investments. To the extent that the Fund invests more of its assets in one Underlying Fund than in another, it will have greater exposure to the risks of that Underlying Fund.
7. FAIR VALUE MEASUREMENTS
Fair value is defined by GAAP as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market for the investment. GAAP provides a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable or unobservable. Observable inputs are based on market data obtained from sources independent of the Fund. Unobservable inputs are inputs that reflect the Fund’s own assumptions based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
| | • | | Level 1 — quoted prices in active markets for identical assets or liabilities; |
| | • | | Level 2 — prices determined using other inputs that are observable either directly, or indirectly through corroboration with observable market data (which could include quoted prices for similar assets or liabilities, interest rates, credit risk, etc.); |
| | • | | Level 3 — prices determined using unobservable inputs when quoted prices or observable inputs are unavailable, such as when there is little or no market activity for an asset or liability (unobservable inputs reflect the Fund’s own assumptions in determining the fair value of assets or liabilities and would be based on the best information available). |
Investments in open-end registered investment companies are valued at NAV and are classified in the fair value hierarchy as Level 1.
8. INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS
Federal income tax regulations differ from GAAP. Therefore, distributions determined in accordance with tax regulations may differ in amount or character from net investment income and net realized gain for financial reporting purposes. Net investment income (loss) and net realized and unrealized gain (loss) differ for financial statement and tax purposes due to differing treatments of net investment loss, and wash sale losses deferred. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences.
As of June 30, 2021, the components of net assets on a tax basis were as follows:
| | | | |
Cost of investments | | $ | 303,878,523 | |
| | | | |
Gross tax unrealized appreciation | | | 127,155,785 | |
Gross tax unrealized depreciation | | | — | |
| | | | |
Net tax unrealized appreciation (depreciation) | | | 127,155,785 | |
Accumulated net investment income (loss) | | | (68,342 | ) |
Accumulated net realized gain (loss) | | | 7,600,710 | |
Paid-in capital | | | 296,268,610 | |
| | | | |
Net Assets | | $ | 430,956,763 | |
| | | | |
11
| | |
| Baron WealthBuilder Fund | | June 30, 2021 |
NOTES TO FINANCIAL STATEMENT (Unaudited) (Continued)
8. INCOME TAXES AND DISTRIBUTIONS TO SHAREHOLDERS (Continued)
The tax character of distributions paid during the six months ended June 30, 2021 and for the year ended December 31, 2020 was as follows:
| | | | | | | | | | | | | | | | |
| | |
| | | Six Months
Ended June 30, 2021 | | | Year Ended
December 31, 2020 | |
| | | | |
| | | Ordinary1 | | | Long Term
Capital Gain | | | Ordinary1 | | | Long Term
Capital Gain | |
| | $ | — | | | $ | — | | | $ | — | | | $ | 2,845,216 | |
| 1 | For tax purposes, short-term capital gains are considered ordinary income distributions. |
The Fund follows the provisions of FASB Codification Section 740 (“ASC Section 740”) “Accounting for Uncertainty in Income Taxes” which clarifies the accounting for uncertainty in tax positions taken or expected to be taken on a tax return. ASC Section 740 sets forth a threshold for financial statement recognition, measurement and disclosure of tax positions taken or expected to be taken on a tax return. The Fund is required to recognize the tax effects of certain tax positions under a “more likely than not” standard, that based on their technical merits, have more than 50 percent likelihood of being sustained upon examination. Management has analyzed the tax positions taken on the Fund’s federal income tax returns for the current year and prior two years, and has concluded that no provision for federal income tax is required in the Fund’s financial statements. At June 30, 2021, the Fund did not have any uncertain tax benefits that require recognition, de-recognition or disclosure. The Fund’s federal, state and local income and federal excise tax returns for which the applicable statutes of limitations have not expired (current and prior three years) are subject to examination by the Internal Revenue Service and state departments of revenue.
9. OWNERSHIP CONCENTRATION
As of June 30, 2021 the officers, trustees and portfolio managers owned, directly or indirectly, 11.68% of the Fund. As a result of their ownership, these investors may be able to materially affect the outcome of matters presented to the Fund’s shareholders.
12
| | |
| June 30, 2021 | | Baron WealthBuilder Fund |
NOTES TO FINANCIAL STATEMENT (Unaudited) (Continued)
10. TRANSACTIONS IN “AFFILIATED” COMPANIES
The Fund invests in the Institutional Shares of the Underlying Funds which are considered to be affiliated with the Fund.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | |
| Name of Issuer | | Value at
December 31,
2020 | | | Purchase
Cost | | | Sales
Proceeds/ Return of
Capital | | | Change in Net
Unrealized
Appreciation
(Depreciation) | | | Realized
Gains/ (Losses) | | | Dividend
Income | | | Other
Distributions | | | Shares
Held at
June 30,
2021 | | | Value at
June 30, 2021 | | | % of Net
Assets at
June 30,
2021 | |
“Affiliated” Company as of June 30, 2021: | |
Baron Asset Fund, Institutional Shares | | $ | 35,331,781 | | | $ | 16,651,236 | | | $ | 21,555 | | | $ | 4,306,583 | | | $ | (693 | ) | | $ | — | | | $ | — | | | | 444,274 | | | $ | 56,267,352 | | | | 13.06 | % |
Baron Discovery Fund, Institutional Shares | | | 10,924,041 | | | | 6,677,359 | | | | 5,065 | | | | 1,872,134 | | | | (349 | ) | | | — | | | | — | | | | 490,875 | | | | 19,468,120 | | | | 4.52 | % |
Baron Durable Advantage Fund, Institutional Shares | | | 3,690,125 | | | | 2,946,463 | | | | 1,970 | | | | 895,834 | | | | 19 | | | | — | | | | — | | | | 412,403 | | | | 7,530,471 | | | | 1.75 | % |
Baron Emerging Markets Fund, Institutional Shares | | | 10,259,667 | | | | 6,813,567 | | | | 4,783 | | | | 523,372 | | | | (325 | ) | | | — | | | | — | | | | 881,779 | | | | 17,591,498 | | | | 4.08 | % |
Baron Fifth Avenue Growth Fund, Institutional Shares | | | 15,540,300 | | | | 8,743,032 | | | | 8,944 | | | | 2,739,905 | | | | (524 | ) | | | — | | | | — | | | | 468,664 | | | | 27,013,769 | | | | 6.27 | % |
Baron FinTech Fund, Institutional Shares | | | 4,788,760 | | | | 4,064,153 | | | | 2,532 | | | | 1,237,090 | | | | 16 | | | | — | | | | — | | | | 594,431 | | | | 10,087,487 | | | | 2.34 | % |
Baron Focused Growth Fund, Institutional Shares | | | 12,571,803 | | | | 4,144,419 | | | | 4,502 | | | | 418,369 | | | | (373 | ) | | | — | | | | — | | | | 374,912 | | | | 17,129,716 | | | | 3.97 | % |
Baron Global Advantage Fund, Institutional Shares | | | 15,993,315 | | | | 10,796,665 | | | | 7,576 | | | | 2,379,175 | | | | (1,005 | ) | | | — | | | | — | | | | 507,935 | | | | 29,160,574 | | | | 6.77 | % |
Baron Growth Fund, Institutional Shares | | | 33,319,521 | | | | 18,079,601 | | | | 15,844 | | | | 3,835,739 | | | | (355 | ) | | | — | | | | — | | | | 466,216 | | | | 55,218,662 | | | | 12.81 | % |
Baron Health Care Fund, Institutional Shares | | | 5,923,951 | | | | 4,931,918 | | | | 3,095 | | | | 1,046,850 | | | | (46 | ) | | | — | | | | — | | | | 562,362 | | | | 11,899,578 | | | | 2.76 | % |
Baron International Growth Fund, Institutional Shares | | | 6,322,059 | | | | 3,270,680 | | | | 3,286 | | | | 859,843 | | | | (10 | ) | | | — | | | | — | | | | 289,454 | | | | 10,449,286 | | | | 2.42 | % |
Baron Opportunity Fund, Institutional Shares | | | 17,580,045 | | | | 6,669,292 | | | | 8,569 | | | | 2,390,321 | | | | (815 | ) | | | — | | | | — | | | | 569,023 | | | | 26,630,274 | | | | 6.18 | % |
Baron Partners Fund, Institutional Shares | | | 55,622,089 | | | | 5,925,955 | | | | 495,794 | | | | 2,672,621 | | | | 70,595 | | | | — | | | | — | | | | 361,386 | | | | 63,795,466 | | | | 14.80 | % |
Baron Real Estate Fund, Institutional Shares | | | 12,452,742 | | | | 5,720,324 | | | | 33,834 | | | | 2,342,778 | | | | (436 | ) | | | — | | | | — | | | | 489,171 | | | | 20,481,574 | | | | 4.76 | % |
Baron Real Estate Income Fund, Institutional Shares | | | — | | | | 6,170,650 | | | | 1,688 | | | | 127,239 | | | | 11 | | | | 14,383 | | | | — | | | | 383,448 | | | | 6,296,212 | | | | 1.46 | % |
Baron Small Cap Fund, Institutional Shares | | | 32,356,124 | | | | 16,000,301 | | | | 15,754 | | | | 3,674,257 | | | | (659 | ) | | | — | | | | — | | | | 1,222,140 | | | | 52,014,269 | | | | 12.07 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 272,676,323 | | | $ | 127,605,615 | | | $ | 634,791 | | | $ | 31,322,110 | | | $ | 65,051 | | | $ | 14,383 | | | $ | — | | | | | | | $ | 431,034,308 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
11. COVID-19 RISK
The coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses taken by many governments or voluntarily imposed by private parties, including closing borders, restricting travel and imposing prolonged quarantines or similar restrictions, as well as the closure of, or operational changes to, many retail and other businesses, have had negative impacts, and general uncertainty on markets worldwide. It is not known how long such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may impact your Fund investment.
13
| | |
| Baron WealthBuilder Fund | | June 30, 2021 |
FINANCIAL HIGHLIGHTS
BARON WEALTHBUILDER FUND
Selected data for a share outstanding throughout each period:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
| | | | | | Income (loss) from
investment operations: | | | Less distributions to
shareholders from: | | | | | | | | | Ratios to Average Net Assets: | | | | | | | | | Supplemental
Data: | |
| | | | | | | | | | | | | | | | | |
| | | Net
asset
value,
beginning
of period
($) | | | Net
investment
income
(loss)
($) | | | Net
realized
and
unrealized
gain (loss)
($) | | | Total
from
investment
operations
($) | | | Net
investment
income
($) | | | Net
realized
gain on
investments
($) | | | Total
distributions
($) | | | Net
asset
value,
end of
period
($) | | | Total
return
(%) | | | Total
expenses9
(%) | | | Less:
Interest
expense
(%) | | | Operating
expenses
(%) | | | Less:
Reimbursement
of expenses
by Adviser
(%) | | | Net
operating
expenses
(%) | | | Net
investment
income
(loss )
(%) | | | Net
assets (in
millions),
end of
period
($) | | | Portfolio
turnover
rate
(%) | |
|
RETAIL SHARES | |
|
Six Month Ended June 30, | |
| | | | | | | | | | | | | | | | | |
2021 | | | 19.57 | | | | (0.03 | )2 | | | 1.84 | | | | 1.81 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 21.38 | | | | 9.25 | 4,7 | | | 0.34 | 6 | | | (0.00 | )6,8 | | | 0.34 | 6 | | | (0.04 | )6 | | | 0.30 | 6 | | | (0.29 | )6 | | | 82.5 | | | | 0.18 | 7 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | | | |
2020 | | | 12.23 | | | | (0.04 | )2 | | | 7.62 | | | | 7.58 | | | | 0.00 | | | | (0.24 | ) | | | (0.24 | ) | | | 19.57 | | | | 62.45 | 4 | | | 0.41 | | | | (0.00 | )8 | | | 0.41 | | | | (0.11 | ) | | | 0.30 | | | | (0.29 | ) | | | 44.5 | | | | 6.65 | |
| | | | | | | | | | | | | | | | | |
2019 | | | 9.33 | | | | (0.03 | )2 | | | 3.37 | | | | 3.34 | | | | (0.01 | ) | | | (0.43 | ) | | | (0.44 | ) | | | 12.23 | | | | 36.24 | 4 | | | 0.41 | | | | (0.02 | ) | | | 0.39 | | | | (0.09 | ) | | | 0.30 | | | | (0.26 | ) | | | 5.9 | | | | 22.48 | |
| | | | | | | | | | | | | | | | | |
2018 | | | 10.00 | | | | (0.01 | )2 | | | (0.65 | ) | | | (0.66 | ) | | | 0.00 | | | | (0.01 | ) | | | (0.01 | ) | | | 9.33 | | | | (6.58 | )4 | | | 0.90 | | | | 0.00 | | | | 0.90 | | | | (0.60 | ) | | | 0.30 | | | | (0.13 | ) | | | 2.1 | | | | 1.24 | |
| | | | | | | | | | | | | | | | | |
20171 | | | 10.00 | | | | (0.00 | )2,3 | | | 0.00 | | | | (0.00 | )3 | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 10.00 | | | | 0.00 | 4,7 | | | 0.59 | 5,6 | | | 0.00 | | | | 0.59 | 5,6 | | | (0.29 | )5,6 | | | 0.30 | 5,6 | | | (0.30 | )5,6 | | | 0.0 | | | | 0.00 | 7 |
|
TA SHARES | |
|
Six Month Ended June 30, | |
| | | | | | | | | | | | | | | | | |
2021 | | | 19.70 | | | | (0.00 | )2,3 | | | 1.85 | | | | 1.85 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 21.55 | | | | 9.39 | 4,7 | | | 0.09 | 6 | | | (0.00 | )6,8 | | | 0.09 | 6 | | | (0.04 | )6 | | | 0.05 | 6 | | | (0.04 | )6 | | | 33.8 | | | | 0.18 | 7 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | | | |
2020 | | | 12.28 | | | | (0.01 | )2 | | | 7.67 | | | | 7.66 | | | | 0.00 | | | | (0.24 | ) | | | (0.24 | ) | | | 19.70 | | | | 62.85 | 4 | | | 0.16 | | | | (0.00 | )8 | | | 0.16 | | | | (0.11 | ) | | | 0.05 | | | | (0.04 | ) | | | 44.0 | | | | 6.65 | |
| | | | | | | | | | | | | | | | | |
2019 | | | 9.35 | | | | (0.00 | )2,3 | | | 3.37 | | | | 3.37 | | | | (0.01 | ) | | | (0.43 | ) | | | (0.44 | ) | | | 12.28 | | | | 36.49 | 4 | | | 0.17 | | | | (0.02 | ) | | | 0.15 | | | | (0.10 | ) | | | 0.05 | | | | (0.03 | ) | | | 21.4 | | | | 22.48 | |
| | | | | | | | | | | | | | | | | |
2018 | | | 10.00 | | | | 0.01 | 2 | | | (0.65 | ) | | | (0.64 | ) | | | 0.00 | | | | (0.01 | ) | | | (0.01 | ) | | | 9.35 | | | | (6.38 | )4 | | | 0.59 | | | | 0.00 | | | | 0.59 | | | | (0.54 | ) | | | 0.05 | | | | 0.05 | | | | 9.7 | | | | 1.24 | |
| | | | | | | | | | | | | | | | | |
20171 | | | 10.00 | | | | (0.00 | )2,3 | | | 0.00 | | | | (0.00 | )3 | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 10.00 | | | | 0.00 | 4,7 | | | 0.34 | 5,6 | | | 0.00 | | | | 0.34 | 5,6 | | | (0.29 | )5,6 | | | 0.05 | 5,6 | | | (0.05 | )5,6 | | | 3.4 | | | | 0.00 | 7 |
|
INSTITUTIONAL SHARES | |
|
Six Month Ended June 30, | |
| | | | | | | | | | | | | | | | | |
2021 | | | 19.70 | | | | (0.00 | )2,3 | | | 1.85 | | | | 1.85 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 21.55 | | | | 9.39 | 4,7 | | | 0.09 | 6 | | | (0.00 | )6,8 | | | 0.09 | 6 | | | (0.04 | )6 | | | 0.05 | 6 | | | (0.04 | )6 | | | 314.7 | | | | 0.18 | 7 |
|
Year Ended December 31, | |
| | | | | | | | | | | | | | | | | |
2020 | | | 12.28 | | | | (0.01 | )2 | | | 7.67 | | | | 7.66 | | | | 0.00 | | | | (0.24 | ) | | | (0.24 | ) | | | 19.70 | | | | 62.85 | 4 | | | 0.16 | | | | (0.00 | )8 | | | 0.16 | | | | (0.11 | ) | | | 0.05 | | | | (0.04 | ) | | | 184.1 | | | | 6.65 | |
| | | | | | | | | | | | | | | | | |
2019 | | | 9.35 | | | | (0.00 | )2,3 | | | 3.37 | | | | 3.37 | | | | (0.01 | ) | | | (0.43 | ) | | | (0.44 | ) | | | 12.28 | | | | 36.49 | 4 | | | 0.17 | | | | (0.02 | ) | | | 0.15 | | | | (0.10 | ) | | | 0.05 | | | | (0.02 | ) | | | 93.8 | | | | 22.48 | |
| | | | | | | | | | | | | | | | | |
2018 | | | 10.00 | | | | 0.01 | 2 | | | (0.65 | ) | | | (0.64 | ) | | | 0.00 | | | | (0.01 | ) | | | (0.01 | ) | | | 9.35 | | | | (6.38 | )4 | | | 0.49 | | | | 0.00 | | | | 0.49 | | | | (0.44 | ) | | | 0.05 | | | | 0.12 | | | | 83.0 | | | | 1.24 | |
| | | | | | | | | | | | | | | | | |
20171 | | | 10.00 | | | | (0.00 | )2,3 | | | 0.00 | | | | (0.00 | )3 | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 10.00 | | | | 0.00 | 4,7 | | | 0.34 | 5,6 | | | 0.00 | | | | 0.34 | 5,6 | | | (0.29 | )5,6 | | | 0.05 | 5,6 | | | (0.05 | )5,6 | | | 1.0 | | | | 0.00 | 7 |
| 1 | For the period December 29, 2017 (commencement of operations) to December 31, 2017. |
| 2 | Based on average shares outstanding. |
| 3 | Less than $0.01 per share. |
| 4 | The total returns would have been lower had certain expenses not been reduced during the period shown. |
| 5 | Certain fixed expenses incurred by the Fund were not annualized for the period ended December 31, 2017. |
| 8 | Interest expense rounds to less than 0.01%. |
| 9 | Expenses do not include acquired fund fees and expenses of the Underlying Funds. |
| | |
| 14 | | See Notes to Financial Statements. |
| | |
| June 30, 2021 | | Baron WealthBuilder Fund |
|
FUND EXPENSES (UNAUDITED) |
As a shareholder of the Fund, you may incur two types of costs: ongoing expenses and transaction costs. Ongoing expenses include distribution and service (12b-1) fees and other Fund expenses. Due to the payment of Rule 12b-1 fees, long-term shareholders may indirectly pay more than the maximum permitted front-end sales charge. The information on this page is intended to help you understand your ongoing costs of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The information in the following table is based on an investment of $1,000 invested on January 1, 2021 and held for the six months ended June 30, 2021.
ACTUAL EXPENSES
The table below titled “Based on Actual Total Return” provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading titled “Expenses Paid During the Period.”
BASED ON ACTUAL TOTAL RETURN FOR THE SIX MONTHS ENDED JUNE 30, 20211
| | | | | | | | | | | | | | | | | | | | |
| | | Actual Total Return | | | Beginning Account Value January 1, 2021 | | | Ending Account Value June 30, 2021 | | | Annualized Expense Ratio | | | Expenses Paid During the Period3 | |
Baron WealthBuilder Fund — Retail Shares | | | 9.25 | % | | $ | 1,000.00 | | | $ | 1,092.50 | 3 | | | 0.30 | %4 | | $ | 1.56 | |
Baron WealthBuilder Fund — TA Shares | | | 9.39 | % | | $ | 1,000.00 | | | $ | 1,093.90 | 3 | | | 0.05 | %4 | | $ | 0.26 | |
Baron WealthBuilder Fund — Institutional Shares | | | 9.39 | % | | $ | 1,000.00 | | | $ | 1,093.90 | 3 | | | 0.05 | %4 | | $ | 0.26 | |
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below titled “Based on Hypothetical Total Return” provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account values and expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Fund and other funds. To do so, compare the 5% hypothetical example relating to the Fund with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that expenses shown in the table below are meant to highlight your ongoing costs and do not reflect any transactional costs, such as redemption fees, if any. Therefore, the table is useful in comparing ongoing costs only and will not help you determine your relative total costs of owning different mutual funds. In addition, if these transactional costs were included, your costs would have been higher.
BASED ON HYPOTHETICAL TOTAL RETURN FOR THE SIX MONTHS ENDED JUNE 30, 20211
| | | | | | | | | | | | | | | | | | | | |
| | | Hypothetical Annualized Total Return | | | Beginning Account Value January 1, 2021 | | | Ending Account Value June 30, 2021 | | | Annualized Expense Ratio | | | Expenses Paid During the Period2 | |
Baron WealthBuilder Fund — Retail Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,023.31 | 3 | | | 0.30 | %4 | | $ | 1.51 | |
Baron WealthBuilder Fund — TA Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,024.55 | 3 | | | 0.05 | %4 | | $ | 0.25 | |
Baron WealthBuilder Fund — Institutional Shares | | | 5.00 | % | | $ | 1,000.00 | | | $ | 1,024.55 | 3 | | | 0.05 | %4 | | $ | 0.25 | |
| 1 | Assumes reinvestment of all dividends and capital gain distributions, if any. |
| 2 | Expenses are equal to each share class’ respective annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365. |
| 3 | Ending account value assumes the return earned after waiver and would have been lower if a portion of the expenses had not been waived. |
| 4 | Annualized expense ratios are adjusted to reflect fee waiver. |
15
| | |
| Baron WealthBuilder Fund | | June 30, 2021 |
DISCLOSURE REGARDING THE APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT FOR BARON WEALTHBUILDER FUND BY THE BOARD OF TRUSTEES (Unaudited)
The Board of Trustees (the “Board”) of Baron Select Funds (the “Trust”) met on May 5, 2021 to discuss the selection of BAMCO, Inc. (the “Adviser”) as the investment adviser and the approval of the investment advisory agreement for Baron WealthBuilder Fund (the “Fund”). The members of the Board who are not “interested persons” (as defined in the Investment Company Act of 1940, as amended) of the Trust (the “Independent Trustees”) met in a separate session to discuss and consider the renewal of the investment advisory agreement for the Fund. Representatives of Broadridge Financial Solutions, Inc. (“Broadridge”), an independent provider of investment company data, provided reports to the Board and attended the Board meeting. The Trustees received a substantial amount of information from the Adviser and from Broadridge, and were advised by independent legal counsel. Based on its evaluation of this and other information, the Board, including a majority of the Independent Trustees, approved the continuation of the investment advisory agreement for the Fund for an additional one-year period.
In reaching its determination, the Board considered various factors that it deemed relevant, including the factors listed below.
1. NATURE, EXTENT AND QUALITY OF SERVICES
The Trustees considered the information provided, including, for many, their experience and knowledge gained from their service as Trustees and their experience generally, including the following, which they had previously considered in connection with approving the investment advisory agreement for the Fund and those of the underlying Baron funds in which it invests and remained, in their thinking, material to their consideration:
| • | | Their confidence in the senior personnel, portfolio management, the financial condition of the Adviser and its affiliates and the Adviser’s available resources; |
| • | | The nature, extent and quality of the services provided by the Adviser, including: relationships with and supervision of third party service providers, such as the Fund’s custodian and transfer agent, the quality of shareholder reports, the ability to monitor adherence to investment guidelines and restrictions, the legal, accounting and compliance services provided to the Fund and the support services provided to the Board; |
| • | | The Adviser’s investment principles and processes and the historical performance of the Fund as compared to similar funds managed by other advisers over comparable periods; |
| • | | The total expense ratio of the Fund and comparisons to similar funds managed by other advisers over comparable periods. They observed that the net operating expenses paid by the Fund (total expense ratio) were within the range of those of the funds in its peer group; and |
| • | | Additional services provided by the Adviser. |
No advisory fee is payable by the Fund to the Adviser, although the Fund bears indirectly its pro rata share of the expenses of the underlying Baron funds in which it invests, including advisory fees payable by such underlying Baron funds to the Adviser.
The Board concluded that the nature, extent and quality of the services the Adviser provides to the Fund supported approval of the investment advisory agreement for the Fund.
2. INVESTMENT PERFORMANCE OF THE FUND AND THE ADVISER
As part of its consideration of the investment performance of the Fund and the Adviser, the Board took into account the analyses performed by and discussed with representatives of Broadridge. The Board considered, among other information, Broadridge’s comparison of the expense ratio with those of peer group funds selected by Broadridge and Morningstar category medians. The Board also considered, among other performance information, Broadridge’s comparisons of the Fund’s annualized total return and related risk metrics over one- and three-year periods against peer group funds and Morningstar category medians. After considering all the information, the Board concluded that the Adviser continued to invest in accordance with its long-standing principles and that the Fund’s performance remained consistent with expectations for the Adviser’s investment style, in light of recent market conditions.
3. COSTS OF SERVICES PROVIDED AND PROFITS TO BE REALIZED BY THE ADVISER
Since the Fund does not pay advisory fees, the Board did not consider any comparisons to the advisory fees charged and services provided by the Adviser and its investment adviser affiliate to any other funds or separately managed accounts. The Board was provided with a profitability analysis prepared by the Adviser and discussed with the representatives of the Adviser that the Adviser has continued to invest in quality personnel, systems and facilities, and otherwise continued to invest in its business, irrespective of fund flows. However, since the Fund does not pay an advisory fee the Board did not consider the profitability analysis material to its considerations.
The Board also considered benefits that accrue to the Adviser and its affiliates from their relationship with the Fund.
4. ECONOMIES OF SCALE AND BENEFITS TO INVESTORS
Since the Fund does not pay an advisory fee, the Board did not consider potential economies of scale. The Board did consider that the Adviser was continuing to grow and upgrade its staff and invest in its business.
After due consideration of the above-enumerated factors and other factors it deemed relevant, the Board, including a majority of the Independent Trustees, approved the continuance of the Fund’s investment advisory agreement.
16
Privacy Notice
The Fund collects nonpublic personal information about you from the following sources:
| ∎ | | Information we receive from you on applications or other forms; |
| ∎ | | Information about your transactions with us, our Adviser or others; and |
| ∎ | | Information we receive from third parties, such as credit reporting agencies. |
“Nonpublic personal information” is private information about you that we obtain in connection with providing a financial product or service to you.
We may share your name and address with other Baron Funds and the Adviser and its affiliates for the purpose of sending you information about our products that we believe may be of interest to you and informing you of our upcoming Baron Investment Conference and for sending required information.
We do not disclose any nonpublic personal information about our customers to anyone, except as permitted or required by law. Examples of permitted disclosures under the law include sharing with companies that work for us to provide you services, such as the Transfer Agent or mailing house. All such companies that act on our behalf are contractually obligated to keep the information that we provide to them confidential and to use the information only to provide the services that we have asked them to perform for you and us.
We restrict access to nonpublic information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic and procedural safeguards to guard your nonpublic personal information.
This privacy notice is also available at all times on the Baron Funds® website, www.BaronFunds.com or by calling 1-800-99BARON.
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767 Fifth Avenue, 49th Fl.
New York, NY 10153
1.800.99.BARON
212-583-2000
www.BaronFunds.com
JUNE 21
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Included herein under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a) The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) Not applicable.
(a)(2) Certification of each of the principal executive officers and principal financial officers of the Registrant as required by Rule 30a-2(a) under the 1940 Act.
(b) Certification of each of the principal executive officers and principal financial officers of the Registrant as required by the 1940 Act.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | |
| BARON SELECT FUNDS |
| |
| By: | | /s/ Ronald Baron |
| | Ronald Baron |
| | Chief Executive Officer |
|
| Date: August 26, 2021 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| By: | | /s/ Ronald Baron |
| | Ronald Baron |
| | Chief Executive Officer |
|
| Date: August 26, 2021 |
| |
| By: | | /s/ Peggy Wong |
| | Peggy Wong |
| | Treasurer and Chief Financial Officer |
|
| Date: August 26, 2021 |
