Distribution Information 2013

The following Funds have made a Distribution in 2013

See Important Tax Information Below

The Funds listed below have made a Distribution as follows:

Record Date 12/18/2013     -     Ex Date 12/19/2013     -     Payable Date 12/20/2013
Fund Ticker
Net Investment Income

Short-Term Capital Gain

Long-Term Capital Gain

Return of Capital

 Total
Baron Real Estate Fund- Retail BREFX - - - - -
Baron Real Estate Fund- Institutional BREIX - - - $0.0320 $0.0320

Regulated investment companies must complete and post an informational IRS form (IRS Form 8937) to report organizational actions that could affect the cost basis of an investment. Examples of organizational actions are a stock split, a payment of a stock dividend to shareholders and a cash distribution treated as a return of capital. To see any IRS Form 8937 posted by Baron Funds, please click here.
                                                                                                                                                                                                                                    

Record Date 11/25/2013     -     Ex Date 11/26/2013     -     Payable Date 11/27/2013
Fund Ticker
Net Investment Income

Short-Term Capital Gain

Long-Term Capital Gain
 Total
Baron Asset Fund- Retail BARAX - $0.0866 $5.5141 $5.6007
Baron Asset Fund- Institutional BARIX - $0.0866 $5.5141 $5.6007
Baron  Growth Fund- Retail BGRFX - $0.1318 $1.5930 $1.7248
Baron Growth Fund- Institutional BGRIX - $0.1318 $1.5930 $1.7248
Baron Small Cap Fund- Retail BSCFX - - $1.2843 $1.2843
Baron Small Cap Fund- Institutional BSFIX - - $1.2843 $1.2843
Baron Opportunity Fund- Retail BIOPX - $0.5876 $0.6148 $1.2024
Baron Opportunity Fund- Institutional BIOIX - $0.5876 $0.6148 $1.2024

The following Funds have made a Spillback Distribution as follows:

Record Date 9/25/2013     -     Ex Date 9/26/2013     -     Payable Date 9/27/2013
Fund Ticker Net Investment Income Short-Term Capital Gain  Long-Term Capital Gain
Total
Baron Focused Growth Fund- Retail BFGFX $0.1712 - - $0.1712
Baron Focused Growth Fund- Institutional BFGIX $0.1983 - - $0.1983
Baron International Growth Fund- Retail BIGFX - - - -
Baron International Growth Fund- Institutional BINIX $0.0014 - - $0.0014
Baron Real Estate Fund- Retail BREFX - $0.0056 $0.0148 $0.0204
Baron Real Estate Fund- Institutional BREIX $0.0024 $0.0056 $0.0148 $0.0228
Baron Energy and Resources Fund- Retail BENFX $0.0144 - - $0.0144
Baron Energy and Resources Fund- Institutional BENIX - - - -

Record Date 7/8/2013     -     Ex Date 7/9/2013     -     Payable Date 7/10/2013
Fund Ticker Net Investment Income Short-Term Capital Gain Long-Term Capital Gain
Total
Baron Growth Fund - Retail BGRFX $0.072 - - $0.072
Baron Growth Fund- Institutional BGRIX $0.072 -  - $0.072

Net investment income and short-term capital gains are considered ordinary income for tax purposes and are taxed at the same federal tax rate.

Shareholders should remember that the net asset value of a fund with an ordinary income and/or capital gain distribution will decline on the ex-dividend date to reflect the adjusted net asset value of a Fund after the distribution.

What is a Spillback Distribution?

Spillback distributions are distributions of ordinary income and/or capital gains from the previous fiscal year that were not distributed by the end of that year. Spillback distributions must be declared within 9 1/2 months of the end of the Fund's fiscal year. They are common practice for mutual funds with fiscal years ending December 31.

Spillback distributions are taxable to investors who hold shares on the record date, even though they represent ordinary income and/or capital gains earned by the funds in 2012.

Spillback distributions will be reported to shareholders on Form 1099-DIV, which will be mailed to shareholders in 2014.

More information on Distributions:

Fund distributions are taxable currently whether shareholders receive them in cash or reinvest in additional Fund shares, unless Fund shares are held in a tax-advantaged account.

Shareholders should consult their tax advisor regarding the necessary filings with the IRS.

Record Date - Investors who own shares in the Fund as of the record date (shareholders of record) will receive the distribution.

Ex Date - The Fund’s NAV will be reduced by the amount of the distribution on this day.

Payable Date - Distributions will be paid to shareholders of record on this day.

Qualified Dividends - If your Baron Fund has a qualified dividend percentage listed in the table, multiply that percentage by the sum of your income dividends plus short-term capital gains. This is the amount of your year-end dividend distribution that is eligible to be taxed at the lower 15% rate applicable to qualified dividends. In order to treat a dividend as qualifying for the lower rates, you must have held your shares for at least 61 days during the 121-day period beginning 60 days before the ex-dividend date of the distribution.

Tax Information
  Qualified Dividend Percentage For Corporate Shareholders: Dividend Received Deduction Income from Tax-Exempt securities Percent of Ordinary Dividends from U.S. Government Obligations Percent of Long-Term Capital Gains Attributable to Gains on U.S. Government Obligations
Baron Asset Fund 100.00% 100.00% n/a n/a n/a
Baron Emerging Markets Fund n/a n/a n/a n/a n/a
Baron Energy and Resources Fund 49.45% 31.70% n/a n/a n/a
Baron Fifth Avenue Growth Fund n/a n/a n/a n/a n/a
Baron Focused Growth Fund 100.00% 100.00% n/a n/a n/a
Baron Global Advantage Fund n/a n/a n/a n/a n/a
Baron Growth Fund 100.00% 100.00% n/a n/a n/a
Baron International Growth Fund 100.00% 100.00% n/a n/a n/a
Baron Opportunity Fund 5.54% 5.56% n/a n/a n/a
Baron Partners Fund n/a n/a n/a n/a n/a
Baron Real Estate Fund 39.54% 38.52% n/a n/a n/a
Baron Small Cap Fund n/a n/a n/a n/a n/a

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This material does not constitute tax, legal or accounting advice and neither Baron Funds nor any of its agents, employees or registered representatives are in the business of offering such advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors.