Barings Global Credit Income Opportunities Fund
CUSIP:06759W505
Symbol:BXIAX
as of 01/17/2020
as of 12/31/2019
as of 12/31/2019
as of 12/31/2019
Objective
The Barings Global Credit Income Opportunities Fund seeks an absolute return, primarily through current income and secondarily through capital appreciation. The fund invests in a diversified portfolio of global high yield securities primarily issued by U.S. and European companies and including but not limited to loans, bonds and structured credit products.
Strategy
- Fund seeks to generate positive returns during the course of a full market cycle while managing volatility including interest rate risk
- Take advantage of a broader opportunity set by investing at least 40% of assets in non-U.S. based issuers of senior secured loans and high yield bonds
- Take advantage of inefficiencies between geographies, primarily North America and European markets
- Targeted approach to high-conviction ideas
- The Fund’s currency exposure will be hedged back to the U.S. dollar (USD)
Who Should Invest
Investors seeking to benefit from an unconstrained absolute return strategy that offers access to compelling high yield investment opportunities worldwide.
Performance
Average Annual Returns %
| January | YTD | 1 Year | 3 Years | 5 Years | Since Inception | |
| With Sales Charge | -3.08% | -3.08% | 4.02% | 2.94% | 4.68% | 4.16% |
| Without Sales Charge | 0.96% | 0.96% | 8.35% | 4.35% | 5.49% | 4.79% |
Performance less than one year is cumulative; all other performance is annualized. Class A performance with the sales charges includes the maximum 4.00% sales charge.
Since inception date: 09/16/2013
| December | YTD | 1 Year | 3 Years | 5 Years | Since Inception | |
| With Sales Charge | -1.93% | 5.06% | 5.06% | 3.12% | 4.46% | 4.03% |
| Without Sales Charge | 2.16% | 9.44% | 9.44% | 4.54% | 5.27% | 4.67% |
| USD 3 MONTH LIBOR + 500bps | 0.60% | 7.47% | 7.47% | 7.09% | 6.51% | 6.27% |
Performance less than one year is cumulative; all other performance is annualized. Class A performance with the sales charges includes the maximum 4.00% sales charge.
The 3 Month USD LIBOR (London Interbank Offered Rate) is an average interest rate, determined by the Intercontinental Exchange, that banks charge one another for the use of short-term money (3 months) in England's Euro dollar market. The return shown includes 3 Month USD LIBOR plus 500 bps, or 5% per annum. LIBOR is unmanaged. It is not possible to invest directly in LIBOR. No assurance can be given that the Fund's performance will exceed that of LIBOR by any given increment, or at all.
Since inception date: 09/16/2013
| QTR | YTD | 1 Year | 3 Years | 5 Years | Since Inception | |
| With Sales Charge | -1.43% | 5.06% | 5.06% | 3.12% | 4.46% | 4.03% |
| Without Sales Charge | 2.67% | 9.44% | 9.44% | 4.54% | 5.27% | 4.67% |
| USD 3 MONTH LIBOR + 500bps | 1.73% | 7.47% | 7.47% | 7.09% | 6.51% | 6.27% |
Performance less than one year is cumulative; all other performance is annualized. Class A performance with the sales charges includes the maximum 4.00% sales charge.
The 3 Month USD LIBOR (London Interbank Offered Rate) is an average interest rate, determined by the Intercontinental Exchange, that banks charge one another for the use of short-term money (3 months) in England's Euro dollar market. The return shown includes 3 Month USD LIBOR plus 500 bps, or 5% per annum. LIBOR is unmanaged. It is not possible to invest directly in LIBOR. No assurance can be given that the Fund's performance will exceed that of LIBOR by any given increment, or at all.
Since inception date: 09/16/2013
Fund Yield
as of 12/31/2019| Sub. SEC 30-day Yield | 4.69% |
| Unsub. SEC 30-day Yield | 4.63% |
| Distribution Yield (at NAV) | 4.69% |
| Distribution Yield (at Offer) | 4.50% |
The Securities and Exchange Commission 30-day Yield is calculated under an SEC standardized formula and is based on the maximum offer price per share. Subsidized (Sub.) yields reflect fee waivers in effect. Without such waivers, yields would be reduced. Unsubsidized (Unsub.) yields do not reflect fee waivers in effect. Distribution Yield at Offer includes maximum sales charges applied. The distribution yield is based on the fund's most recent monthly distribution per share (annualized) divided by the fund's NAV at the end of the period. Please click on the following links for additional information as well as access to the Fund's Prospectus and SAI.
Calendar Year End Returns
| Year | Price Type | A-Class | C-Class | Y-Class | I-Class |
| 2019 | NAV | 9.44% | 8.63% | 9.71% | 9.71% |
| 2019 | Offer | 5.06% | 7.63% | 9.71% | 9.71% |
| 2018 | NAV | -1.98% | -2.72% | -1.73% | -1.75% |
| 2018 | Offer | -5.89% | -3.63% | N/A | N/A |
| 2017 | NAV | 6.49% | 5.70% | 6.76% | 6.76% |
| 2017 | Offer | 2.23% | 4.70% | N/A | N/A |
| 2016 | NAV | 14.59% | 13.73% | 14.87% | 14.87% |
| 2016 | Offer | 10.01% | 12.73% | N/A | N/A |
| 2015 | NAV | -1.26% | -2.00% | -1.03% | -1.02% |
| 2015 | Offer | -4.96% | -2.92% | N/A | N/A |
| 2014 | NAV | -3.94% | -1.81% | 0.08% | 0.08% |
| 2014 | Offer | -0.23% | -0.90% | N/A | N/A |
| 2013 | NAV | 3.30% | 3.00% | 3.30% | 3.30% |
| 2013 | Offer | -0.45% | 2.00% | N/A | N/A |
Expense Ratios
| A-Class | C-Class | I-Class | Y-Class | |
| Expense Ratio (Gross) | 1.36% | 2.21% | 1.09% | 1.12% |
| Expense Ratio (Net) | 1.20% | 1.95% | 0.95% | 0.95% |
The net expense ratio reflects a contractual commitment by the Fund's investment adviser to waive fees and reimburse expenses through November 1, 2020. Absent the waiver and reimbursement, expenses would be higher and total returns would be less. The gross expense ratio reflects the total annual fund operating expense as of the most recent prospectus.
Performance shown is historical and does not guarantee future results. Current performance may be lower or higher. Because share price, principal value, and return will vary, you may have a gain or loss when you sell Fund shares. Performance includes the reinvestment of dividends and capital gains. Calendar year returns at offer include maximum sales charges applied.
Distributions
Distribution History
| Ex Date | Record Date | Payable Date | Amount |
| Daily | Daily | 01/02/2020 | $0.0356 |
| Daily | Daily | 12/02/2019 | $0.0361 |
| Daily | Daily | 11/01/2019 | $0.0436 |
| Daily | Daily | 10/01/2019 | $0.0384 |
| Daily | Daily | 09/03/2019 | $0.0402 |
| Daily | Daily | 08/01/2019 | $0.0395 |
| Daily | Daily | 07/01/2019 | $0.0384 |
| Daily | Daily | 06/03/2019 | $0.0397 |
| Daily | Daily | 05/01/2019 | $0.0421 |
| Daily | Daily | 04/01/2019 | $0.0484 |
| Daily | Daily | 03/01/2019 | $0.0399 |
| Daily | Daily | 02/01/2019 | $0.0419 |
Pricing
52 Week High/Low
| Date | Price | |
| High | 01/17/2020 | $9.06 |
| Low | 10/31/2019 | $8.80 |
YTD High/Low
| Date | Price | |
| High | 01/17/2020 | $9.06 |
| Low | 01/06/2020 | $9.01 |
Portfolio as of 12/31/2019
Weighted Average Duration
1.42 yrs
Portfolio Assets Composition
Quality Distribution
| Ratings | % of Assets |
| BAA | 3.35% |
| BA | 31.64% |
| B | 42.23% |
| CCC AND BELOW | 10.60% |
| NOT RATED | 3.16% |
| CASH AND ACCRUED | 9.03% |
| Total | 100.01% |
Percentages of assets are expressed by market value including cash, short-term instruments and accrued income, and will vary over time. Ratings shown are the highest rating given by one of the following national rating agencies: S&P or Moody's. Additional information about ratings can be found at www.moodys.com and www.standardandpoors.com. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated Not Publicly Rated are not rated by these national rating agencies.
Top 5 Countries
| Country | % of Assets |
| UNITED STATES | 57.16% |
| UNITED KINGDOM | 8.02% |
| GERMANY | 5.06% |
| NETHERLANDS | 3.13% |
| CHINA | 1.82% |
| Total | 75.19% |
Top 10 Holdings
| Holding | % of Assets |
| ENDEMOL | 1.49% |
| TRANSDIGM GROUP, INC. | 1.46% |
| SPRINT CORPORATION | 1.27% |
| BAUSCH HEALTH COMPANIES (F.K.A. VALEANT PHARMACEUTICALS) | 1.24% |
| FIRST QUANTUM MINERALS LTD | 1.23% |
| VERITAS | 1.18% |
| MAUSER PACKAGING SOLUTIONS (FKA BWAY) | 1.08% |
| VERISURE | 1.06% |
| ORTHO-CLINICAL DIAGNOSTICS INC. | 1.05% |
| VERTAFORE | 1.04% |
| Total | 12.10% |
Holdings are subject to change.
Top 10 Moody's Industries
| Industry | % of Assets |
| HEALTHCARE, EDUCATION AND CHILDCARE | 9.26% |
| DIVERSIFIED / CONGLOMERATE SERVICE | 6.96% |
| TELECOMMUNICATIONS | 6.71% |
| BROADCASTING AND ENTERTAINMENT | 5.13% |
| FINANCE | 4.57% |
| OIL AND GAS | 3.99% |
| ELECTRONICS | 3.79% |
| INSURANCE | 3.57% |
| BEVERAGE, FOOD AND TOBACCO | 3.39% |
| AEROSPACE AND DEFENSE | 3.28% |
| Total | 50.65% |
Percentage of assets are expressed by market value including cash and accrued income, and will vary over time.
RISKS
Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose part or even all of your investment. Fixed Income investing is subject to interest rate risks. Bond prices and other fixed income product prices generally fall when interest rates rise. The Fund invests in high yield loans and bonds, commonly referred to as “junk bonds,” including distressed securities, which are subject to greater credit risk (the risk that an issuer won’t make timely payments of principal and interest) and market risk (the risk that the value of the Fund’s investments may fall, sometimes rapidly or unpredictably, as a result of increasing interest rates or otherwise); loans and derivative securities, which may carry market, credit and liquidity risk (the risk that the Fund’s investments may be difficult to sell at an advantageous time or price); foreign securities, which are subject to additional risks including political and economic risks. The Fund may also invest in structured products which bear the risks of the underlying investments and are subject to counterparty risk, credit risk, liquidity risk and market risk.
Although these securities tend to provide higher yields than higher rated securities, there is a greater risk that the Fund’s share price will decline.
We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. Past performance is no guarantee of future results.
Diversification does not ensure profit, nor does it eliminate the risk of experiencing investment losses.
Documents
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Factsheet
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Portfolio Holdings
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Fund Documents
- 2019 IRS Form 8937 Report of Organizational Actions Affecting Basis of Securities - Global Credit Income Opportunities Fund
- Barings Funds Trust - Annual Report
- BFT 2018 Semi-Annual Report (Six Months Ended Dec. 31, 2018)
- XBRL Supplement
- BFT Complaints or Concerns Regarding Accounting or Auditing Matters
- Barings Global Credit Income Opportunity Fund - Summary Prospectus
- BFT 2017 Semi-Annual Report (Six Months Ended Dec. 31, 2017)
- 2018 IRS Form 8937 Report of Organizational Actions Affecting Basis of Securities - Barings Global Credit Income Opportunities Fund
- BFT Prospectus
- 2017 IRS Form 8937 Report of Organizational Actions Affecting Basis of Securities - Global Credit Income Opportunities Fund
- BFT Sales Charge and Breakpoint Information
- BFT Statement of Additional Information
- BFT – Form N-PX
- Barings Entity Account Application
- Fund Code of Ethics
- XBRL
Before investing you should consider carefully the Fund’s investment objectives, risks, charges and expenses. A prospectus, which contains this and other information, can be obtained by calling 1.855.439.5459. Read the prospectus carefully before investing: BFT Prospectus
ALPS Distributors, Inc. is the distributor for the Barings mutual funds. ALPS and Barings are separate and unaffiliated.
© 2018 Barings LLC. All rights reserved.
Portfolio Managers
Sean Feeley, CFA
David Mihalick
Michael Freno
Martin Horne
Scott Roth, CFA
Thomas McDonnell
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