EN United States

Barings U.S. High Yield Fund

CUSIP:06759W877

Symbol:BXHAX

NAV
as of 06/17/2019
USD 9.720
Diversity
as of 04/30/2019
124 issuers
Weighted Average Duration
as of 04/30/2019
3.15 yrs
U.S. Holdings
as of 04/30/2019
87.30% U.S.

Objective

Our U.S. high yield strategy seeks to achieve a high level of total return, with an emphasis on current income, by investing primarily in high yield debt and related securities.

Strategy

  • Invests in U.S. high yield corporate debt issuers supported by 40 global high yield research analysts
  • Seeks to capture the best relative value opportunities across rating categories, industries and within an issuer’s capital structure
  • Bottom-up, fundamental approach to credit analysis with a focus on free cash flow generation, favorable capital structure, strong business position and respected management teams or equity sponsors
  • Targeted approach to high conviction ideas with an active portfolio management style to manage risk while optimizing relative value

Who Should Invest

Investors seeking to benefit from a strategy that aims to produce a superior total rate of return through high yield instruments.

Performance

Average Annual Returns %

June YTD 1 Year 3 Years 5 Years Since Inception
With Sales Charge -2.88% 3.58% 0.50% 5.26% N/A 5.61%
Without Sales Charge 1.17% 7.90% 4.69% 6.70% N/A 6.80%

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: 10/30/2015

May YTD 1 Year 3 Years 5 Years Since Inception
With Sales Charge -5.49% 2.39% 0.16% 5.06% N/A 5.35%
Without Sales Charge -1.55% 6.65% 4.33% 6.50% N/A 6.55%
Barclays U.S. Corporate High Yield -1.19% 7.49% 5.51% 7.04% N/A 6.70%

Class A performance with the sales charges includes the maximum 4.00% sales charge.
The Barclays Capital U.S. Corporate High Yield Index covers the universe of fixed-rate, non-investment grade debt focusing on corporate USD denominated and non-convertible debt. Indices are unmanaged. It is not possible to invest directly in an index.
Inception date: 10/30/2015

QTR YTD 1 Year 3 Years 5 Years Since Inception
With Sales Charge 2.17% 2.17% 0.46% 6.57% N/A 5.56%
Without Sales Charge 6.43% 6.43% 4.65% 8.03% N/A 6.83%
Barclays U.S. Corporate High Yield N/A 7.26% 5.93% 8.56% N/A 6.97%

Class A performance with the sales charges includes the maximum 4.00% sales charge.
The Barclays Capital U.S. Corporate High Yield Index covers the universe of fixed-rate, non-investment grade debt focusing on corporate USD denominated and non-convertible debt. Indices are unmanaged. It is not possible to invest directly in an index.
Inception date: 10/30/2015

Fund Yield

as of 04/30/2019
Sub. SEC 30-day Yield 5.61%
Unsub. SEC 30-day Yield 5.54%
Distribution Yield (at NAV) 6.09%
Distribution Yield (at Offer) 5.84%

Yield to worst is the lowest potential yield that can be received on a bond without the issuer actually defaulting. Calculated by making worst-case scenario assumptions on the issue by calculation the returns that would be received if any in-whole mandatory redemptive provisions are exercised by the issuer.

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.

Expense Ratios

A-Class C-Class I-Class Y-Class
Expense Ratio (Gross) 1.71% 6.43% 1.28% 1.25%
Expense Ratio (Net) 1.00% 1.75% 0.75% 0.75%

The net expense ratio reflects a contractual commitment by the Fund's investment adviser to waive fees and reimburse expenses through November 1, 2019. 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. For current month-end performance information, call 1.855.439.5459. Performance includes the reinvestment of dividends and capital gains. Performance less than one year is cumulative; all other performance is annualized.

Distributions

Distribution History

Ex Date Record Date Payable Date Amount
Daily Daily 06/03/2019 $0.0497
Daily Daily 04/01/2019 $0.0496
Daily Daily 03/01/2019 $0.0499
Daily Daily 02/01/2019 $0.0485
Daily Daily 01/02/2019 $0.0483
Daily Daily 12/03/2018 $0.0475
Daily Daily 11/01/2018 $0.0499
Daily Daily 10/01/2018 $0.0484
Daily Daily 09/04/2018 $0.0557
Daily Daily 08/01/2018 $0.0418
Daily Daily 07/02/2018 $0.0448

Download Distribution History

Pricing

52 Week High/Low

Date Price
High 10/03/2018 $9.94
Low 12/26/2018 $9.25

YTD High/Low

Date Price
High 05/01/2019 $9.87
Low 01/03/2019 $9.30

Portfolio as of 04/30/2019

Weighted Average Duration

3.15 yrs

Number of Issuers

124 issuers

Download Portfolio Holdings (xls)

Portfolio Assets Composition

Top 5 Countries

Country % of Assets
UNITED STATES 85.57%
CANADA 3.45%
ZAMBIA 1.99%
NETHERLANDS 1.79%
GHANA 1.45%
Total 94.25%

Top 10 Holdings

Holding % of Assets
TIBCO SOFTWARE, INC. 3.04%
SPRINT NEXTEL CORPORATION 2.39%
ORTHO-CLINICAL DIAGNOSTICS INC. 2.31%
JBS USA, LLC 1.99%
FIRST QUANTUM MINERALS LTD 1.99%
BAUSCH HEALTH COMPANIES (F.K.A. VALEANT PHARMACEUTICALS) 1.95%
M/I HOMES, INC. 1.64%
CENTURYLINK, INC. 1.63%
MAUSER PACKAGING SOLUTIONS (FKA BWAY) 1.62%
CITGO HOLDING, INC. 1.62%
Total 20.18%

Holdings are subject to change. 

Top 10 Moody's Industries

Industry % of Assets
OIL AND GAS 12.10%
TELECOMMUNICATIONS 11.00%
HEALTHCARE, EDUCATION AND CHILDCARE 10.10%
MINING, STEEL, IRON AND NON PRECIOUS METALS 9.90%
BROADCASTING AND ENTERTAINMENT 7.45%
ELECTRONICS 5.66%
FINANCE 5.08%
BUILDINGS AND REAL ESTATE 4.94%
AEROSPACE AND DEFENSE 4.60%
CARGO TRANSPORT 4.01%
Total 74.84%

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. Duration measures the price sensitivity of a bond or a portfolio to changes in interest rates. 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 mortgage and asset-backed securities which may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market's perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. 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

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.

Click here to report Complaints or Concerns Regarding Accounting or Auditing Matters via the service provider’s website. Additional reporting options can be found under Fund Documents.

Portfolio Managers

Sean Feeley

Sean Feeley

Scott Roth, CFA

Scott Roth, CFA

David Mihalick

David Mihalick

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