Mutual Fund Summary Prospectus (497k)
28 Janeiro 2013 - 1:34PM
Edgar (US Regulatory)
Investment Goal
The investment goal of Baron Asset Fund (the “Fund”) is capital appreciation through long-term investments primarily in securities of medium-sized companies with undervalued assets or favorable
growth prospects.
Fees and Expenses of the Fund
The table below describes the fees and expenses that you would pay if you bought and held shares of the Fund.
Annual Fund Operating Expenses
(Expenses that you pay each year as a percentage of the
value of your investment)
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Management
Fee
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Distribution
(12b-1)
Fee
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Other
Expenses
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Total
Annual
Fund
Operating
Expenses
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BARON ASSET FUND†
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Retail Shares
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1.00%
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0.25%
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0.08%
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1.33%
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Institutional Shares
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1.00%
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0.00%
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0.06%
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1.06%
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†
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Based on fiscal year ended September 30, 2012.
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Example
This example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares. The example also assumes that your investment has a 5% return each year, and
that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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YEAR
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1
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3
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5
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10
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BARON ASSET FUND
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Retail Shares
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$
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135
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$
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421
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$
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729
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$
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1,601
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Institutional Shares
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$
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108
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$
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337
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$
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585
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$
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1,294
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Portfolio Turnover.
The Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes for Fund shareholders. These costs, which are not reflected in Annual Fund Operating Expenses
or in the example, affect the Fund’s performance. During the most recent fiscal year ended September 30, 2012, the Fund’s portfolio turnover rate was 13.11% of the average value of its
portfolio.
Investments, Risks, and Performance
Principal Investment Strategies of the Fund
The Fund invests for the long term primarily in equity securities in the form of common stock of medium-sized growth companies with market capitalizations of between $1.5 billion and $12 billion at the time
of purchase selected for their capital appreciation potential. The Fund purchases securities in businesses that BAMCO, Inc. (“BAMCO” or the “Adviser”) believes could double in value in four years. The Adviser selects securities
that it believes have favorable price-to-value characteristics, are well managed, have significant long term growth prospects and have significant barriers to competition. Of course, there can be no guarantee that the Adviser will be successful in
achieving the Fund’s investment goals. Because of its long-term approach, the Fund could have a significant percentage of its assets invested in securities that have appreciated beyond their original market cap ranges.
Principal Risks of Investing in the Fund
General Stock Market.
Investing in the stock market is risky because securities fluctuate in value. These fluctuations may be due to political, economic or general market circumstances.
Other factors may affect a single company or industry but not the broader market. Because the values of securities fluctuate, when you sell your investment in the Fund, you may lose money. Current and future portfolio holdings in the Fund are
subject to risk.
Medium-Sized Companies.
The Adviser believes there is more potential for capital appreciation in medium-sized
companies, but there also may be more risk. Securities of medium-sized companies may not be well known to most investors, and the securities may be less actively traded than those of large businesses. The securities of medium-sized companies may
fluctuate in price more widely than the stock market generally, and they may be more difficult to sell during market downturns. Medium-sized companies rely more on the skills of management and on their continued tenure. Investing in medium-sized
companies requires a long-term outlook and may require shareholders to assume more risk and to have more patience than investing in the securities of larger, more established companies.
Growth Investing.
Growth stocks can react differently to issuer, political, market and economic developments than the market as a whole and other types of stocks. Growth stocks tend to be
more expensive relative to their earnings or assets
compared to other types of stocks. As a result, growth stocks tend to be sensitive to changes in their earnings and more volatile than other types of stocks.
Performance
The following
bar chart and table provide some indication of the risks of investing in the Fund (Retail Shares) by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for 1, 5 and 10 years
compare with those of a broad measure of market performance. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available online
at
www.BaronFunds.com/performance
or by calling 1-800-99BARON (1-800-992-2766).
Year by Year Total Return (%)
as of
December 31 of Each Year (Retail Shares)
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Best Quarter:
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06/30/09: 20.73%
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Worst Quarter:
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12/31/08: (27.51%)
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Average Annual Total
Returns
(for periods ended 12/31/12)
The table below shows the Fund’s Retail Shares’ annual returns and long-term performance
(before and after taxes) and the change in value of broad-based market indexes over various periods ended December 31, 2012. The table also shows the average annual returns of the Fund’s Institutional Shares, but it does not show after-tax
returns.
After-tax returns are calculated using the highest individual federal marginal income tax rate in effect at the time of each
distribution and assumed sale, but they do not include the impact of state and local taxes.
Your actual after-tax returns depend on your own tax
situation and may differ from those shown. After-tax returns reflect past tax effects and are not predictive of future
tax effects. After-tax returns are not relevant to investors who hold their Fund’s shares in a tax-deferred account (including a 401(k) or IRA or Coverdell account), or to investors that are
tax-exempt.
Average Annual Total Returns for the periods ended December 31, 2012
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1
year
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5
years
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10
years
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Since
Inception
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BARON ASSET FUND
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Retail Shares
(Inception date:
06-12-87)
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Return before taxes
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15.31%
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1.16%
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9.31%
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10.70%
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Return after taxes on
distributions
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14.06%
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0.23%
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8.46%
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9.86%
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Return after taxes on distributions and
sale of Fund shares
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11.59%
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0.83%
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8.14%
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9.58%
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Institutional Shares*
(Inception
date: 05-29-09)
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Return before taxes
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15.63%
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1.35%
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9.41%
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10.74%
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Russell Midcap
®
Growth Index (reflects no deduction for fees, expenses or taxes)
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15.81%
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3.23%
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10.32%
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9.16%
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S&P 500 Index (reflects no deduction
for fees, expenses or taxes)
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16.00%
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1.66%
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7.10%
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8.71%
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*
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Performance of the Institutional Shares prior to May 29, 2009 is based on the performance of the Retail Shares, which have a distribution fee. The Institutional Shares do
not have a distribution fee. If the annual returns prior to May 29, 2009 did not reflect this fee, the returns would be higher.
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†
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For the period June 30, 1987 to December 31, 2012.
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The Russell Midcap
®
Growth Index is an unmanaged index of mid-cap growth
companies. The S&P 500 Index is an unmanaged index of larger-cap companies.
Management
Investment Adviser.
BAMCO is the investment adviser of the Fund.
Portfolio
Manager.
Andrew Peck has been the sole portfolio manager of the Fund since January 23, 2008. He had been a co-portfolio manager of the Fund with Ronald Baron since July 23, 2003. Mr. Peck has worked at the Adviser as an
analyst since February of 1998.
Purchase and Sale of Fund Shares
Shares may be purchased only on days that the
New York Stock Exchange is open for trading.
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Minimum Initial Investment
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Subsequent Investments
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Retail Shares
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$2,000
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No Minimum
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Baron Automatic Investment
Plan
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$500
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$50 per month
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Baron Funds
®
website purchases
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$2,000
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$10
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Institutional Shares
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$1,000,000
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No Minimum
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Baron Funds
®
website purchases
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You may not make an initial purchase through the Baron Funds
®
website.
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Up to $25,000
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You Can Purchase or Redeem Shares By:
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1.
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Mailing a request to Baron
Funds
®
, P.O. Box 219946, Kansas City, MO 64121-9946 or by overnight mail to: Baron Funds
®
, 430 West 7th Street, Kansas City, MO 64105-1514;
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3.
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Calling 1-800-442-3814;
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4.
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Visiting the Baron
Funds
®
website
www.BaronFunds.com
; or
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5.
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Through a broker, dealer or other financial intermediary that may charge you a fee.
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The Fund is not for short-term traders who intend to purchase and then sell their Fund shares within a 90 day period. If the Adviser reasonably believes that a person is not a long-term investor, it will
attempt to prohibit that person from making additional investments in the Fund.
Tax Information
Distributions of the Fund’s net investment income (other than “qualified dividend income”) and distributions of net short-term capital gains
will be taxable to you as ordinary income. Distributions of the Fund’s net capital gains reported as capital gain dividends by the Fund will be taxable to you as long-term capital gains, regardless of the length of time you have held shares of
the Fund.
Financial Intermediary Compensation
If you purchase shares of the Fund through
a broker, dealer or other financial intermediary (such as a bank or financial adviser), the Fund, its Distributor, its Adviser or their affiliates may pay the intermediary for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker, dealer or other financial intermediary, including your salesperson, to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more
information.
JAN13