Barings Global Investment Grade Credit Fund

Barings Global Investment Grade Credit Fund
The Fund invests primarily through a diversified portfolio of investment grade fixed and floating rate corporate debt instruments and government debt instruments globally.

The Fund is subject to risks relating to investment, credit, interest rate fluctuations, downgrading, valuation, credit rating, currency, as well as risk associated with convertible instruments and hybrid securities, collateralised and/or securitised products. Investing in emerging markets may involve increased risks, including liquidity, currency/currency control, political and economic uncertainties, legal and taxation, settlement, custody and volatility risks.

The Fund’s investment in securities issued or guaranteed by governments may be exposed to political, social and economic risks and may suffer significant losses when there is a default of sovereign debt issuers.

RMB classes are subject to RMB currency risks. There is no guarantee that RMB will not be subject to depreciation. RMB is currently not freely convertible and conversion of RMB is subject to foreign exchange control policies and restrictions. Under exceptional circumstances, payment of redemption proceeds and/or dividend payment may be delayed.

The integration of environmental, social and governance (ESG) information into the investment process may cause the Fund to perform differently compared to similar collective investment schemes. ESG information provided by third-party resources may also be incomplete, inaccurate or unavailable.

The Fund may have exposure to financial derivatives instruments for hedging, non-hedging and/or investment purposes which may involve counterparty/credit, liquidity, valuation, volatility and over-the-counter transaction risks. Exposure to financial derivative instruments may lead to a high risk of significant loss by the Fund.

The Fund’s investment in debt instruments with loss-absorption features (“LAP”) are subject to risks of contingent write-down or contingent conversion to ordinary shares upon occurrence of complex and unpredictable trigger events which may result in higher price volatility and total loss of amount invested.  LAP may also be exposed to liquidity, valuation and sector concentration risk.

Dividends, at the discretion of the Directors, may be paid out of unrealised capital gains and/or gross income while charging some or all fees and expenses out of capital (which represent effectively paying dividends out of capital), resulting in an increase in distributable income. The Fund may also pay dividends directly out of capital. Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or any capital gains attributable to that original investment and results in an immediate reduction of the Fund’s net asset value per share.

Investors may suffer substantial loss of their investments in the Fund.