The Board of Trustees of Barings Participation Investors (the
"Trust") met on January 20, 2017. The Trust’s Trustees
determined that the Trust’s December 31, 2016 net asset value
("NAV") is $136,606,731 or $13.15 per share based on 10,386,173
shares outstanding. The Trust's December 31, 2015 NAV was
$135,349,634 or $13.10 per share based on 10,328,391 shares
outstanding. The Trust reported a NAV of $141,496,822 or
$13.65 per share as of September 30, 2016, based on 10,369,161
shares outstanding. Unlike the NAV reported for quarters
ended March 31, June 30, and September 30, the NAV for the quarter
ended December 31 reflects the declaration of the quarterly
dividend of $0.27 per share, which was paid on January 13, 2017.
All figures for 2016 are unaudited.
Net investment income for the year ended
December 31, 2016 was $10,190,880 or $0.98 per share. This
represents an increase from the year ended December 31, 2015, when
net investment income was $9,903,669 or $0.96 per share. For the
quarter ended December 31, 2016, net investment income was
$3,121,757 or $0.30 per share, of which approximately $376,441 or
$0.04 per share represented income due to nonrecurring items.
For the quarter ended December 31, 2015, net investment income was
$2,499,923 or $0.24 per share, of which approximately $116,583 or
$0.01 per share represented income due to nonrecurring items. The
Trust earned net investment income of $2,378,431 or $0.23 per share
during the quarter ended September 30, 2016.
The Trust realized net capital losses of
$1,148,672 or $0.11 per share during the quarter ended December 31,
2016, which resulted in realized net capital gains for the year
ended December 31, 2016 of $1,931,283 or $0.19 per share. By
comparison, for the year ended December 31, 2015, the Trust
realized net capital gains of $502,639 or $0.05 per share.
During the quarter ended September 30, 2016, the Trust realized net
capital gains of $733,319 or $0.07 per share.
Estimated taxable income of the Trust exceeded
net investment income reported in accordance with generally
accepted accounting principles (“GAAP”) by approximately $1,000,000
or $0.10 per share, for the year ended December 31, 2016. For the
year ended December 31, 2016, the Trust’s estimated taxable capital
loss was $82,015 or $0.01 per share, as compared to GAAP realized
capital gains of $1,931,283 or $0.19 per share. Tax versus
GAAP net investment income and capital gains figures, respectively,
differ from each other due to income and capital gains realized by
PI Subsidiary Trust (which the Trust received in the form of a
dividend), a capital loss carryforward from 2015 and, in part, due
to GAAP and tax timing differences in the recognition of various
income and expense items. This dividend of $1,000,000, from the PI
Subsidiary Trust, was treated as ordinary income for tax purposes
for the Trust.
The market price of the Trust as of December 31,
2016 was $14.20, which equates to a 7.98% premium over the December
31, 2016 NAV per share. The Trust’s average quarter-end
premium for the 3, 5 and 10-year periods was 0.69% 7.03% and 7.14%,
respectively.
The Board of Trustees of the Trust announced
that the annual shareholders' meeting will be held on Friday, April
21, 2017 at 1:00 PM at Massachusetts Mutual Life Insurance Company,
1295 State Street, Springfield, MA. Shareholders of record at
the close of business on February 24, 2017 will be entitled to vote
at the meeting.
In addition to reviewing the Trust’s performance
during the past year, the shareholders will be asked to vote on the
following matter at the April shareholder meeting:
-- Election of three members of the Trust's Board of Trustees—
Michael H. Brown, Barbara M. Ginader and Maleyne M. Syracuse
Barings Participation 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 ("MPV").
Per share amounts are rounded to the nearest
cent.
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.
About Barings LLCBarings is a $284 billion*
global asset management firm dedicated to meeting the evolving
investment and capital needs of our clients. We build lasting
partnerships that leverage our distinctive expertise across
traditional and alternative asset classes to deliver innovative
solutions and exceptional service. A member of the MassMutual
Financial Group, Barings maintains a strong global presence with
over 1,700 employees and 600 investment professionals across 41
offices in 17 countries. Learn more at www.barings.com.
*As of September 30, 2016
17/27
Brian Whelan, Head of Corporate Communications, 980.417.7700, brian.whelan@barings.com
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