Baron WealthBuilder Fund (the “Fund”) advanced meaningfully in the third quarter of 2020 and exceeded its comparable benchmarks. The Fund gained 19.79% (Institutional Shares) in the quarter. The S&P 500 Index gained 8.93%. The MSCI ACWI Index, which measures global markets, increased 8.13%.
The Fund’s quarterly performance is a continuation of the strong results exhibited since the depths of the COVID-19 induced market panic. The Fund has now advanced 32.28% since the start of the year. This result again compares favorably to its benchmarks. The S&P 500 and MSCI ACWI Indexes gained 5.57% and 1.37%, respectively
COVID-19 remains a threat to world health. But governments have met this pandemic with an unprecedented level of financial stimulus hoping to prevent the health crisis from becoming a liquidity and financial crisis. And, we assume, there will be more government financial assistance. It is yet unclear when reliable vaccines or therapeutics will be publicly introduced, and we do not know the severity of a “second wave” as the Northern Hemisphere enters colder months. However, investors have looked past these near-term uncertainties and valued businesses on their potential growth and anticipated future profits.
Table 1. Performance
Annualized for periods ended September 30, 2020