The Board of Trustees of Barings Corporate Investors (NYSE: MCI)
(the "Trust") met on May 16, 2024 and would like to report its
preliminary financial results for the first quarter of 2024.
Financial
Highlights(1)
Three Months Ended
March 31, 2024
Three Months Ended
December 31, 2023
Total Amount
Per
Share(5)
Total Amount
Per Share(4)
Net investment income(2)
$
8,072,938
$
0.40
$
7,379,615
$
0.36
Net realized (losses) / gains(3)
$
1,770,637
$
0.08
$
480,613
$
0.02
Net unrealized appreciation /
(depreciation)
$
552,329
$
0.03
$
1,093,175
$
0.05
Net increase in net assets resulting from
operations
$
10,293,583
$
0.51
$
9,075,093
$
0.45
Total net assets (equity)
$
350,763,288
$
17.28
$
339,826,094
$
16.77
(1) All figures for 2024 are unaudited
(2) December 31, 2023 figures net of
approximately $0.04 per share of excise tax.
(3) December 31, 2023 figures net of
approximately $0.01 per share of capital gains tax
(4) Based on shares outstanding at the end
of the period of 20,261,719
(5) Based on shares outstanding at the end
of the period of 20,298,644
Key Highlights:
Commenting on the quarter, Christina Emery, President, stated,
"The Trust earned $0.40 per share of net investment income, net of
taxes, for the first quarter of 2024, compared to $0.36 per share
in the previous quarter. The increase in net investment income was
predominantly due to higher base rates. The Trust has increased
dividends for the last seven 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
quarter, Barings continued to drive origination flow into quality,
1st lien senior secured middle-market investments. When
constructing portfolios, we focus on investing in high-quality
businesses that are leaders in their space and offer defensive
characteristics that will allow them to perform through economic
cycles.”
The Board of Trustees declared a quarterly dividend of $0.39 per
share, payable on June 14, 2024, to shareholders of record on May
31, 2024. This represents an increase of $0.01 per share or 2.6%
over the previous dividend of $0.38 per share.
During the three months ended March 31, 2024, the Trust reported
total investment income of $10.1 million, net investment income of
$8.1 million, or $0.40 per share, and a net increase in net assets
resulting from operations of 10.2 million, or $0.51 per share.
Net asset value ("NAV") per share as of March 31, 2024, was
$17.28, as compared to $16.77 as of December 31, 2023. The increase
in NAV per share was primarily attributable to net investment
income, net of taxes, of $0.40 per share, net unrealized
appreciation on the Trust’s investment portfolio of approximately
$0.03 per share and realized gains of approximately $0.08 per
share.
The next scheduled meeting of the Board of Trustees will be held
on August 15, 2024.
Recent Portfolio
Activity
During the three months ended March 31, 2024, the Trust made
eight new investments totaling $13.3 million and 29 add-on
investments in existing portfolio companies totaling $10.2 million.
During the three months ended March 31, 2024, the Trust had five
loans repaid at par totaling $19.2 million and realized two equity
investments that generated realized gains of $1.5 million.
Liquidity and
Capitalization
As of March 31, 2024, the Trust had cash of $7.9 million and
$35.0 million of borrowings outstanding. The Trust had unfunded
commitments of $19.5 million as of March 31, 2024.
Net Capital Gains
The Trust realized net capital gains of $1,770,637 or $0.08 per
share during the quarter ended March 31, 2024. By comparison, for
the quarter ended December 31, 2023, the Trust realized net capital
gains of $480,613 or $0.052 per share.
Annual Meeting
At the Annual Meeting, which was held on Thursday, May 16, 2024,
shareholders elected Clifford M. Noreen as an Interested Trustee
and Edward P. Grace III as an Independent Trustee, each for
three-year terms.
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 $406+ 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 March 31, 2024
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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