NEW YORK--(BUSINESS WIRE)--Baron Capital, a premier asset management firm focused exclusively on delivering growth equity investment solutions to institutions, financial advisors, and individual investors, today announced the conversion of Baron New Asia Fund® (BNAIX) to Baron India Fund® (BINDX), representing the Fund’s strategic shift in its investment focus. The change, effective September 1, 2024, means Baron India Fund will invest a minimum of 80% of the portfolio in Indian equities using Baron Capital’s long-term approach to growth investing.
“India’s high growth potential, favorable demographics, and accelerating urbanization and digitization are just a few of the factors that we believe will create excellent opportunities for our style of growth investing,” said Anuj Aggarwal, portfolio manager of Baron India Fund. “There’s been significant appetite among U.S. investors for India exposure given its status as a top-performing market, and we are thrilled to offer investors differentiated access to Indian growth equities using the time-tested Baron Capital investment approach.”
The Fund, which will be managed by Mr. Aggarwal, will hold companies of all sizes with significant growth potential based in India. Mr. Aggarwal joined Baron Capital in 2012 as a research analyst and was promoted to assistant portfolio manager of Baron Emerging Markets Fund in 2020. He was named co-portfolio manager of Baron New Asia Fund in 2021 and became sole portfolio manager upon its conversion on September 1, 2024. He has 16 years of research experience.
The Indian market presents a compelling opportunity within the emerging markets universe. The MSCI India Index has outperformed the MSCI EM Index by 21.81%, 18.51% and 10.53% over the one-, three-, and five-year periods respectively as of 6/30/24.
Taken by itself, Baron New Asia Fund’s India equity exposure, managed by Mr. Aggarwal, has returned 61.30% over one year and 16.16% annualized over three years as of 7/31/24. This compares favorably to the Morningstar India Category Average, which returned 31.04% and 11.89%, respectively, over the same periods.
“Based upon our Firm’s research, we believe there are exceptional investment opportunities in India,” said Ron Baron, chairman and CEO of Baron Capital. “With profound structural changes taking place, India is extremely well positioned as an engine of growth in Asia and beyond. Anuj has substantial experience managing Indian equities and had significant exposure to the asset class in Baron New Asia Fund and Baron Emerging Markets Fund. We at Baron Capital feel that providing dedicated Indian growth exposure using our unique approach is a significant value add for investors.”
About Baron Capital
Baron Capital is a premier asset management firm focused exclusively on delivering growth equity investment solutions to institutions, financial advisors, and individual investors. Since its founding in 1982, Baron Capital has been united under one style of investing with a single objective–to be long-term investors in secular growth businesses with durable competitive advantages, run by great management teams. With $41 billion in assets under management (as of 6/30/24) across 19 strategies, Baron Capital prides itself on delivering the best solutions and outcomes for clients globally.
More information about Baron Capital is available by calling 1-800-99-BARON or by visiting BaronCapitalGroup.com. The adviser to Baron Funds is BAMCO, Inc., a subsidiary of Baron Capital Group, Inc.
You should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund and can be obtained from the Fund's distributor, Baron Capital, Inc., by calling 1-800-99-BARON or visiting BaronCapitalGroup.com. Please read them carefully before investing.
Baron New Asia Fund's annualized returns for the Institutional Shares as of June 30, 2024: 1-year, 18.72%; Since Inception (7/30/2021), -2.60%. The gross annual expense ratio for the Institutional Shares as of December 31, 2023 was 6.93%, but the net expense ratio was 1.20% (net of reimbursements from the adviser).
MSCI AC Asia ex Japan Index's annualized returns as of June 30, 2024: 1-year, 12.89%; Since Fund Inception (7/30/2021), -3.38%.
MSCI AC Asia ex Japan IMI Growth Index's annualized returns as of June 30, 2024: 1-year, 12.19%; Since Fund Inception (7/30/2021), -5.74%.
MSCI AC Asia Index's annualized returns as of June 30, 2024: 1-year, 13.05%; Since Fund Inception (7/30/2021), -1.16%.
Morningstar India Category Average’s annualized returns as of June 30, 2024: 1-year, 29.79%, since Fund inception (7/30/2021), 10.23%.
The performance data quoted represents past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate; an investor's shares, when redeemed, may be worth more or less than their original cost. The Adviser waives and/or reimburses certain Fund expenses pursuant to a contract expiring on August 29, 2034, unless renewed for another 11-year term and the Fund's transfer agency expenses may be reduced by expense offsets from an unaffiliated transfer agent, without which performance would have been lower. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month end, visit BaronCapitalGroup.com or call 1-800-99-BARON.
Risks: Non-U.S. investments may involve additional risks to those inherent in U.S. investments, including exchange-rate fluctuations, political or economic instability, the imposition of exchange controls, expropriation, limited disclosure and illiquid markets. In addition, investments in developing countries may have increased risks due to a greater possibility of settlement delays; currency and capital controls; interest rate sensitivity; corruption and crime; exchange rate volatility; and inflation or deflation. Government actions, bureaucratic obstacles and inconsistent economic reform within the Indian government have had a significant effect on the Indian economy and could adversely affect market conditions, economic growth and the profitability of private enterprises in India.
The discussion of market trends is not intended as advice to any person regarding the advisability of investing in any particular security. The views expressed in this document reflect those of the respective writer. Some of our comments are based on management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. Our views are a reflection of our best judgment at the time and are subject to change at any time based on market and other conditions and Baron has no obligation to update them.
Morningstar calculates the Morningstar India Category Average Performance and rankings using its Fractional Weighting methodology. Total returns do account for management, administrative, and 12b-1 fees and other costs automatically deducted from fund assets. 2024 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its affiliates or content providers; (2) may not be copied, adapted or distributed; (3) is not warranted to be accurate, complete or timely; and (4) does not constitute advice of any kind, whether investment, tax, legal or otherwise. User is solely responsible for ensuring that any use of this information complies with all laws, regulations and restrictions applicable to it. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
MORNINGSTAR IS NOT RESPONSIBLE FOR ANY DELETION, DAMAGE, LOSS OR FAILURE TO STORE ANY PRODUCT OUTPUT, COMPANY CONTENT OR OTHER CONTENT.
The MSCI India Index Net (USD) is a broad-based securities index that is designed to measure the performance of the large and mid-cap segments of the Indian market. The MSCI Emerging Markets Index Net (USD) is designed to measure equity market performance of large and mid-cap securities across 24 Emerging Markets countries. The MSCI AC Asia ex Japan/India Linked Index Net (USD) was created by the Adviser and links the performance of the MSCI AC Asia ex Japan Index for all periods prior to August 31, 2024 and the MSCI India Index for all periods thereafter. The MSCI AC Asia ex Japan Index Net (USD) measures the performance of large and mid cap equity securities across 2 of 3 Developed Markets countries (excluding Japan) and 8 Emerging Markets countries in Asia. MSCI is the source and owner of the trademarks, service marks and copyrights related to the MSCI Indexes. The indexes and the Fund include reinvestment of dividends, net of foreign withholding taxes, which positively impact the performance results. The indexes are unmanaged. Index performance is not Fund performance.
Inventors cannot invest directly in an index.
BAMCO, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Baron Capital, Inc. is a broker-dealer registered with the SEC and member of the Financial Industry Regulatory Authority, Inc. (FINRA).
