The Board of Trustees of Barings Corporate Investors (NYSE: MCI)
(the "Trust") met on November 16, 2023, and would like to report
its preliminary financial results for the third quarter of
2023.
Financial
Highlights(1)
Three Months Ended
September 30, 2023
Three Months Ended June
30, 2023
Total Amount
Per Share(4)
Total Amount
Per Share(4)
Net investment income(2)
$ 8,904,737
$ 0.44
$ 7,698,158
$ 0.38
Net realized gains / (losses)(3)
$ (1,970,622)
$ (0.10)
$ 282,766
$ 0.01
Net unrealized appreciation /
(depreciation)
$ 3,042,761
$ 0.15
$ 56,258
$ 0.00
Net increase in net assets resulting from
operations
$9,991,192
$ 0.49
$8,114,718
$ 0.40
Total net assets (equity)
$ 345,947,291
$ 17.07
$ 343,047,700
$ 16.93
(1) All figures for 2023 are unaudited
(2) Figures include less than $0.01 per share of excise tax
benefit
(3) Figures net of less than $0.01 per share of capital gains
tax
(4) Based on shares outstanding at the end of the period of
20,261,719
Key Highlights:
Commenting on the quarter, Christina Emery, President, stated,
"The Trust earned $0.44 per share of net investment income, net of
taxes, for the third quarter of 2023, compared to $0.38 per share
in the previous quarter. The increase in net investment income was
predominantly related to $0.05 per share of non-recurring income
(repayment of past due income) received in the third quarter, while
core earnings increased $0.01 per share due to higher base rates.
During the quarter, Barings continued to invest in 1st lien senior
secured and mezzanine debt in middle-market companies. The Trust
has increased dividends for the last 5 quarters, which is further
confirmation of our credit philosophy, where we focus on leading
businesses backed by strong sponsor ownership and conservative
capital structures. This approach has historically generated stable
returns and relative stability during economic stress.”
During the three months ended September 30, 2023, the Trust
reported total investment income of $10.8 million, net investment
income of $8.9 million, or $0.44 per share, and a net increase in
net assets resulting from operations of $10.0 million, or $0.49 per
share.
Net asset value ("NAV") per share as of September 30, 2023, was
$17.07, as compared to $16.93 as of June 30, 2023. The increase in
NAV per share was primarily attributable to net investment income
exceeding the Trust’s quarterly dividend by $0.09 per share and net
unrealized appreciation on the Trust’s investment portfolio of
$0.15 per share, partially offset by net realized losses on the
Trust’s investment portfolio of $0.10 per share.
On October 10, 2023, the Board of Trustees declared a quarterly
dividend of $0.37 per share payable on November 17, 2023, to
shareholders of record on November 6, 2023. This represents an
increase of $0.02 per share or 5.7% over the previous dividend of
$0.35 per share and was the fifth consecutive increase to the
quarterly dividend.
The next scheduled meeting of the Board of Trustees will be held
on December 14, 2023.
Recent Portfolio
Activity
During the three months ended September 30, 2023, the Trust made
seven new investments totaling $12.1 million and 24 add-on
investments in existing portfolio companies totaling $4.3 million.
During the three months ended September 30, 2023, the Trust had one
loan repaid at par totaling $2.5 million, one mezzanine debt
investment repaid at par totaling $2.4 million and wrote off one
mezzanine debt and equity investment that generated a realized loss
of $2.0 million.
Liquidity and
Capitalization
As of September 30, 2023, the Trust had cash of $9.7 million and
$40.0 million of borrowings outstanding. The Trust had unfunded
commitments of $22.0 million as of September 30, 2023.
Net Capital Gains
The Trust realized net capital losses of $1,970,622 or $0.10 per
share during the quarter ended September 30, 2023. By comparison,
for the quarter ended June 30, 2023, the Trust realized net capital
gains of $282,766 or $0.01 per share.
About Barings Corporate
Investors
Barings Corporate Investors is a closed-end management
investment company advised by Barings LLC. Its shares are traded on
the New York Stock Exchange under the trading symbol ("MCI").
About Barings LLC
Barings is a $347+ billion* global investment manager sourcing
differentiated opportunities and building long-term portfolios
across public and private fixed income, real estate, and specialist
equity markets. With investment professionals based in North
America, Europe and Asia Pacific, the firm, a subsidiary of
MassMutual, aims to serve its clients, communities, and employees,
and is committed to sustainable practices and responsible
investment. Learn more at www.barings.com.
*Assets under management as of September 30, 2023
Per share amounts are rounded to the nearest cent.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE
RESULTS
Cautionary Notice: Certain statements contained in this press
release may be "forward looking" statements. Investors are
cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date on which they are made
and which reflect management’s current estimates, projections,
expectations or beliefs, and which are subject to risks and
uncertainties that may cause actual results to differ materially.
These statements are subject to change at any time based upon
economic, market or other conditions and may not be relied upon as
investment advice or an indication of the fund's trading intent.
References to specific securities are not recommendations of such
securities, and may not be representative of the fund's current or
future investments. We undertake no obligation to publicly update
forward looking statements, whether as a result of new information,
future events, or otherwise.
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