BGH Barings Global Short Duration High Yield Fund

As filed with the U.S. Securities and Exchange Commission on September 8, 2023

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-22562

Investment Company Act file number

 

 

Barings Global Short Duration High Yield Fund

(Exact name of registrant as specified in charter)

 

 

300 South Tryon Street, Suite 2500, Charlotte, NC 28202

(Address of principal executive offices) (Zip code)

 

 

Corporation Service Company (CSC)

251 Little Falls Drive

Wilmington, DE 19808

United States

(Name and address of agent for service)

 

 

704-805-7200

Registrant’s telephone number, including area code

Date of fiscal year end: December 31

Date of reporting period: June 30, 2023

 

 

 

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Item 1. Reports to Stockholders.

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BARINGS GLOBAL SHORT DURATION HIGH YIELD FUND

Semi-Annual Report

June 30, 2023

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PROXY VOTING POLICIES & PROCEDURES

The Trustees of Barings Global Short Duration High Yield Fund (the “Fund”) have delegated proxy voting responsibilities relating to the voting of securities held by the Fund to Barings LLC (“Barings”). A description of Barings’ proxy voting policies and procedures is available (1) without charge, upon request, by calling, toll-free 1-866-399-1516; (2) on the Fund’s website at http://www.barings.com/bgh; and (3) on the U.S. Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov.

FORM N-PORT PART F

The Fund will file its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Part F of Form N-PORT. This information is available (1) on the SEC’s website at http://www.sec.gov; and (2) at the SEC’s Public Reference Room in Washington, DC (which information on their operation may be obtained by calling 1-800-SEC-0330). A complete schedule of portfolio holdings as of each quarter-end is available on the Fund’s website at http://www.barings.com/bgh or upon request by calling, toll-free, 1-866-399-1516.

CERTIFICATIONS

The Fund’s President has submitted to the NYSE the annual CEO Certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.

LEGAL MATTERS

The Fund has entered into contractual arrangements with an investment adviser, transfer agent and custodian (collectively “service providers”) who each provide services to the Fund. Shareholders are not parties to, or intended beneficiaries of, these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the Fund.

Under the Fund’s Bylaws, any claims asserted against or on behalf of the Fund, including claims against Trustees and officers must be brought in courts located within the Commonwealth of Massachusetts.

The Fund’s registration statement and this shareholder report are not contracts between the Fund and its shareholders and do not give rise to any contractual rights or obligations or any shareholder rights other than any rights conferred explicitly by federal or state securities laws that may not be waived.

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

OFFICERS OF THE FUND

 

 

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

Dear Fellow Shareholders,

We present the 2023 Semi-Annual Report for the Barings Global Short Duration High Yield Fund (the “Fund”) to recap portfolio performance and positioning. We believe our Global High Yield Investments Group is one of the largest teams in the market primarily focused on North American and Western European credit. Utilizing the Group’s unparalleled expertise, deep resources and time-tested process, we believe we can provide investors with an attractive level of current income to help navigate any market environment which may lie ahead, and continue to uncover compelling opportunities across the global high yield market.

The Fund’s strategy focuses primarily on North American and Western European high yield companies, with the flexibility to dynamically shift the geographic weighting in order to capture, in our opinion, the best risk-adjusted investment opportunities. Barings’ global capabilities on the ground in major markets allow for us to be nimble in uncertain times and take advantage of unique opportunities as they arise. In addition, the strategy focuses closely on limiting the duration of the Fund, while maintaining what we consider to be a reasonable amount of leverage.

Market Review

Global fixed income markets navigated continued pressure from rising interest rates, persistent inflation, stress in the U.S. regional banking system, and the overhang of strains in China real estate, to generate strong performance through the first half of the year. Sharp returns in January mitigated weakness and increased volatility at the end of the first quarter, driving returns in excess of 3% in both the U.S. and Europe in 1Q. Spread tightening in the second quarter was offset by the continued rise in interest rates, resulting in more modest performance than the prior quarter. Corporate earnings continue to come in better than feared, while those companies missing earnings or reducing guidance are negatively impacted, driving increased dispersion in the market. Meanwhile, default rates have continued to trend higher but remain modest compared to prior cycles and within long-term averages.

Slowing inflation data in the closing months combined with strong equity markets bolstered risk appetite within high yield markets. Credit spreads peaked at 516 bps in March following the collapse of Silicon Valley Bank, before rallying through the second quarter to close at 390 bps, 79 bps tighter than year-end levels. Higher government bond yields offset some of this tightening, as yield-to-worst finished 46 bps lower at 8.50%. More cyclical areas of the market such as Leisure led, while Communications lagged. Triple-C rated assets outperformed as spreads compressed across ratings buckets, in addition to a shorter duration profile. New issuance remained muted, with $95.6 billion pricing in total, while the overall high yield universe continued to shrink as upgrades to investment grade significantly outpaced downgrades to high yield. European markets experienced similar dynamics, with the notable exception of underperformance within the lowest-rated sections of the market. The option-adjusted spread for the European market tightened 61 bps to close at 464 bps, while yield-to-worst fell 17 bps to 7.79%. New issue activity totaled €32.8 billion.

Barings Global Short Duration High Yield Fund Overview and Performance

The Fund ended June 2023 with a portfolio of 179 issuers, in line with year-end levels. From a regional perspective, there was a slight shift in regional exposure from year-end, with exposure to the United States declining to 81.2% from 81.4%; the United Kingdom remains the second largest exposure at 5.5% (See Country Composition chart below). The Fund’s exposure to Rest of World issuers, whose country of risk is outside of the U.S. and Europe but fit within the Fund’s developed market focus, increased from year-end to 5.7%. The Fund’s primary exposure continues to be in the North American market, which features the most robust opportunity set across fixed income markets.

As of June 30, 2023, the Fund’s positioning across the credit quality spectrum was as follows: 38.15% double-B rated and above, 32.11% single-B rated, and 27.80% triple-C rated and below, with approximately 40.68% of the portfolio consisting of secured obligations. Compared to the end of the prior period, the Fund’s exposure to higher-rated credits increased, primarily sourced from lower-rated triple-C and below securities. Non-publicly rated securities represented 1.94%.

The distribution per share was constant throughout the period at $0.1056 per share. The Fund’s share price and net asset value (“NAV”) ended the reporting period at $14.67 and $13.04, respectively, or at a 11.12% discount to NAV. Based on the Fund’s share price and NAV on June 30, 2023, the Fund’s market price and NAV distribution rates—using the most recent monthly dividend, on an annualized basis—were 9.72% and 8.64%, respectively. Assets acquired through leverage, which

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

represented 25.17% of the Fund’s total assets at the end of June, were accretive to net investment income and benefited shareholders.

On a year-to-date basis through June 30, 2023, the NAV total return for the Fund was 7.89%, outperforming the global high yield bond market, as measured by the ICE Bank of America Non-Financial Developed Markets High Yield Constrained Index, which returned 5.51% on a hedged to the U.S. dollar basis. From a market value perspective, the total return year-to-date through June 30, 2023 was 7.85%. The Fund generated positive absolute and relative returns in each quarter to begin the year. The shorter-duration exposure, including floating rate allocations to 1st and 2nd lien senior secured loans and collateralized loan obligations, continued to benefit results. The allocation to lower-rated credit also benefitted results given spread compression in the U.S. and positive returns across broader risk assets.

Market Outlook

With data indicating that inflation has moderated in recent months, attention turns to the lagged impact of the interest rate hiking cycle on demand and economic growth. Labor markets remain solid, providing the Federal Reserve flexibility to maintain rates at an elevated level at least through year-end. Consensus forecasts expect growth to continue to slow, although a significant downturn remains an unlikely outcome; similarly, while corporate fundamentals have deteriorated sequentially, revenue, EBITDA, and balance sheet metrics remain above pre-pandemic levels, and near-term maturities remain limited and of higher ratings quality. Credit spreads may widen from current levels near historical averages, although attractive valuations on a dollar price and yield basis backstop trading levels. Technical factors, including low levels of supply and elevated manager cash balances, also remain supportive. Meanwhile, elevated short-term rates have driven average coupons for floating rate asset classes higher and remain supportive of total returns in these markets. While default rates are likely to increase this year and remain at a similar level into next year across the leveraged finance space, they are anticipated to remain at manageable levels near historical averages with the impact mitigated by current income.

At Barings, we remain committed to focusing on corporate fundamentals as market sentiment can change quickly and unexpectedly. Our focused and disciplined approach emphasizes our fundamental bottom-up research, with the goal of preserving investor capital while seeking to capture attractive capital appreciation opportunities that may exist through market and economic cycles. On behalf of the Barings team, we continue to take a long-term view of investing and look forward to helping you achieve your investment goals.

Sincerely,

 

 

Sean Feeley

 

1.

Ratings are based on Moody’s, S&P and Fitch. If securities are rated differently by the rating agencies, the higher rating is applied and all ratings are converted to the equivalent Moody’s major rating category for purposes of the category shown. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of the security’s market value or of the liquidity of an investment in the security. Ratings of Baa3 or higher by Moody’s and BBB-or higher by S&P and Fitch are considered to be investment grade quality.

 

2.	Past performance is not necessarily indicative of future results. Current performance may be lower or higher. All performance is net of fees, which is inclusive of advisory fees, administrator fees and interest expenses.

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

PORTFOLIO COMPOSITION (% OF ASSETS*)

 

 

 

*	The percentages shown above represent a percentage of the assets as of June 30, 2023.

COUNTRY COMPOSITION (% OF ASSETS*)

 

 

 

*	The percentages shown above represent a percentage of the assets as of June 30, 2023.

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

 

AVERAGE ANNUAL RETURNS JUNE 30, 2023		1 YEAR				5 YEAR				10 YEAR
Barings Global Short Duration High Yield Fund (BGH)			11.23	%			2.68	%			4.86	%
ICE Bank of America Non-Financial Developed Markets High Yield Constrained Index (HNDC)			9.52	%			3.34	%			5.39	%

Data for Barings Global Short Duration High Yield Fund (the “Fund”) represents returns based on the change in the Fund’s net asset value assuming the reinvestment of all dividends and distributions. These returns differ from the total investment return based on market value of the Fund’s shares due to the difference between the Fund’s net asset value of its shares outstanding (See the Fund’s Financial Highlights within this report for total investment return based on market value). Past performance is no guarantee of future results.

ICE Bank of America Non-Financial Developed Markets High Yield Constrained Index (HNDC) contains all securities in the ICE Bank of America Global High Yield Index that are non-financials and from developed markets countries, but caps issuer exposure at 2%. Developed markets is defined as an FX G10 member, a Western European nation, or a territory of the U.S. or a Western European nation. Indices are unmanaged. It is not possible to invest directly in an index.

The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of the Fund shares.

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

FINANCIAL REPORT

 

 

Statement of Assets and Liabilities		7
Statement of Operations		8
Statement of Cash Flows		9
Statements of Changes in Net Assets		10
Financial Highlights		11
Schedule of Investments		12-22
Notes to the Financial Statements		23-33
Fund Dividend Reinvestment Plan		34
Joint Privacy Notice		35

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

STATEMENT OF ASSETS AND LIABILITIES

 

(Unaudited)

 

		JUNE 30, 2023
Assets
Investments, at fair value (cost $433,217,158)		$	381,382,678
Cash and cash equivalents			13,992,903
Foreign currency, at fair value (cost $615,674)			601,432
Interest and dividend receivable			9,108,604
Receivable for investments sold			4,207,526
Prepaid expenses and other assets			56,821
Total assets			409,349,964
Liabilities
Credit facility			102,500,000
Payable for investments purchased			8,833,360
Dividend payable			2,118,791
Payable to adviser			276,528
Unrealized depreciation on forward foreign exchange contracts			611,804
Accrued expenses and other liabilities			708,264
Total liabilities			115,048,747
Total net assets		$	294,301,217
Net assets:
Common shares, $0.00001 par value		$	201
Additional paid-in capital			467,835,468
Total accumulated loss			(173,534,452	)
Total net assets		$	294,301,217
Common shares issued and outstanding (unlimited shares authorized)			20,064,313
Net asset value per share		$	14.67

 

See accompanying Notes to the Financial Statements.

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

STATEMENT OF OPERATIONS

 

(Unaudited)

 

		PERIOD FROM JANUARY 1, 2023 THROUGH JUNE 30, 2023
Investment Income
Interest income		$	20,338,658
Dividend income (net of foreign taxes withheld of $55)			87,862
Other income			152
Total investment income			20,426,672
Operating Expenses
Interest expense			2,932,796
Advisory fees			1,695,264
Accounting and administration fees			193,570
Other operating expenses			142,582
Professional fees			91,757
Trustee fees			76,639
Excise tax on undistributed income			—
Total expenses			5,132,608
Net investment income			15,294,064
Realized losses and unrealized appreciation/depreciation on investments and foreign currency related transactions
Net realized loss on investments			(7,426,762	)
Net realized loss on forward foreign exchange contracts			(315,203	)
Net realized loss on foreign currency related transactions			(307,113	)
Net realized loss on investments, forward foreign exchange contracts and foreign currency transactions			(8,049,078	)
Net change in unrealized appreciation/depreciation on investments			14,136,100
Net change in unrealized appreciation/depreciation on forward foreign exchange contracts			(408,461	)
Net change in unrealized appreciation/depreciation on foreign currency transactions			(161	)
Net change in unrealized appreciation/depreciation on investments, forward foreign exchange contracts and foreign currency transactions			13,727,478
Net realized losses and unrealized appreciation/depreciation on investments and foreign currency transactions			5,678,400
Net increase in net assets resulting from operations		$	20,972,464

 

See accompanying Notes to the Financial Statements.

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

STATEMENT OF CASH FLOWS

 

(Unaudited)

 

		PERIOD FROM JANUARY 1, 2023 THROUGH JUNE 30, 2023
Cash flows from operating activities
Net increase in net assets resulting from operations		$	20,972,464
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Purchases of long-term investments			(97,853,817	)
Proceeds from sales of long-term investments			106,353,232
Net change in unrealized appreciation/depreciation on investments			(14,136,100	)
Net realized loss on investments			6,839,456
Amortization and accretion			(765,330	)
Net change in unrealized appreciation/depreciation on forward foreign exchange contracts			408,461
Changes in assets and liabilities:
Increase in receivable for investments sold			(2,804,843	)
Increase in interest and dividend receivable			(270,152	)
Increase in prepaid expenses and other assets			(29,800	)
Decrease in payable to Adviser			(12,897	)
Decrease in excise tax payable on undistributed income			(1,017,478	)
Increase in payable for investments purchased			8,748,064
Decrease in accrued expenses and other liabilities			(205,727	)
Net cash provided by operating activities			26,225,533
Cash flows from financing activities
Advances from credit facility			6,000,000
Repayments on credit facility			(12,000,000	)
Distributions paid to common shareholders			(12,712,749	)
Net cash used in financing activities			(18,712,749	)
Net change in cash			7,512,784
Cash and cash equivalents (including foreign currency), beginning of period			7,081,551
Cash and cash equivalents (including foreign currency), end of period		$	14,594,335
Supplemental disclosure of cash flow information
Excise taxes paid		$	1,017,478
Interest paid			2,887,079

 

See accompanying Notes to the Financial Statements.

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

STATEMENTS OF CHANGES IN NET ASSETS

 

 

		PERIOD FROM JANUARY 1, 2023 THROUGH JUNE 30, 2023				YEAR ENDED DECEMBER 31, 2022
		(Unaudited)
Operations
Net investment income		$	15,294,064			$	29,393,217
Net realized loss on investments, forward foreign exchange contracts and foreign currency transactions			(8,049,078	)			(8,537,949	)
Net change in unrealized appreciation/depreciation on investments, forward foreign exchange contracts and foreign currency translation			13,727,478				(68,060,177	)
Net increase (decrease) in net assets resulting from operations			20,972,464				(47,204,909	)
Distributions to common shareholders
From distributable earnings			(12,712,749	)			(25,425,498	)
Total Distributions to common shareholders			(12,712,749	)			(25,425,498	)
Total increase (decrease) in net assets			8,259,715				(72,630,407	)
Net assets
Beginning of period			286,041,502				358,671,909
End of period		$	294,301,217			$	286,041,502

 

See accompanying Notes to the Financial Statements.

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

FINANCIAL HIGHLIGHTS

 

 

		PERIOD FROM JANUARY 1, 2023 THROUGH JUNE 30, 2023 (UNAUDITED)				YEAR ENDED DECEMBER 31, 2022				YEAR ENDED DECEMBER 31, 2021				YEAR ENDED DECEMBER 31, 2020				YEAR ENDED DECEMBER 31, 2019				YEAR ENDED DECEMBER 31, 2018
Per Common Share Data
Net asset value, beginning of period		$	14.26			$	17.88			$	16.68			$	18.32			$	18.28			$	20.84
Income from investment operations:
Net investment income			0.76				1.46				1.72				1.59				1.87				1.89
Net realized gain (loss) and unrealized appreciation/depreciation on investments and foreign currency transactions			0.28				(3.81	)			0.75				(1.86	)			(0.05	)			(2.67	)
Total increase (decrease) from investment operations			1.04				(2.35	)			2.47				(0.27	)			1.82				(0.78	)
Less distributions to common stockholders:
Net investment income			(0.63	)			(1.27	)			(1.27	)			(1.37	)			(1.78	)			(1.78	)
Total distributions to common stockholders			(0.63	)			(1.27	)			(1.27	)			(1.37	)			(1.78	)			(1.78	)
Net asset value, end of period		$	14.67			$	14.26			$	17.88			$	16.68			$	18.32			$	18.28
Per common share market value, end of period		$	13.04			$	12.68			$	17.34			$	15.09			$	17.53			$	15.95
Total investment return based on net asset value (2)			7.89	%(1)			(12.88	)%			15.71	%			0.79	%			10.77	%			(3.42	)%
Total investment return based on market value (2)			7.85	%(1)			(19.98	)%			23.97	%			(4.65	)%			21.45	%			(9.38	)%
Supplemental Data and Ratios
Net assets, end of period (000’s)		$	294,301			$	286,042			$	358,672			$	334,576			$	367,649			$	366,691
Ratio of expenses (before reductions and reimbursements) to average net assets			3.51	%(4)			2.73	%(3)			2.17	%(3)			2.32	%(3)			3.00	%			2.93	%
Ratio of expenses (after reductions and reimbursements) to average net assets			3.51	%(4)			2.60	%			1.95	%			2.23	%			3.00	%			2.93	%
Ratio of net investment income (before reductions and reimbursements) to average net assets			10.46	%(4)			9.17	%(3)			8.54	%(3)			10.53	%(3)			10.22	%			9.34	%
Ratio of net investment income (after reductions and reimbursements) to average net assets			10.46	%(4)			9.31	%			8.76	%			10.61	%			10.22	%			9.34	%
Portfolio turnover rate			25.34	%(1)			34.04	%			52.08	%			42.21	%			52.25	%			48.92	%

 

(1)

Not annualized.

(2)

Total investment return calculation assumes reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions.

(3)

Effective August 6, 2020 the Adviser began waiving a portion of it’s management and other fees equal to an annual rate of 0.150% of the Fund’s managed assets. The waiver expired on August 31, 2022 (see Note 3).

(4)

Annualized.

 

See accompanying Notes to the Financial Statements.

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

SCHEDULE OF INVESTMENTS

 

June 30, 2023 (Unaudited)

 

										SHARES				COST				FAIR VALUE
Equities* — 0.53%:
Common Stocks — 0.49%:
ESC CB 144A High Ridge¤											2,982				$0				$0
KCA Deutag Ordinary A Shares											25,580				1,103,387				1,432,480
Travelex Private Equity+¤											17,136				1				0
Naviera Armas Class B2 Shares Stapled To 1.5L SSNS+¤											1,194				0				0
Naviera Armas Class B3 Shares+¤											169				0				0
Naviera Armas Class A3 Shares+¤											133				0				0
Naviera Armas Class A2 Shares Stapled To 1.5L SSNS+¤											937				0				0
Total Common Stocks											48,131				1,103,388				1,432,480
Warrant — 0.04%:
Travelex Topco Limited+											2,218				0				119,717
Total Warrant											2,218				0				119,717
Total Equities											50,349				1,103,388				1,552,197
		EFFECTIVE INTEREST RATE ‡				DUE DATE				PRINCIPAL				COST				FAIR VALUE
Fixed Income — 129.06%:
Asset-Backed Securities — 14.50%:
CDO/CLO — 14.50%:
610 FDG 2016-2R CLO LTD, 3M LIBOR + 7.250%+~^#			12.50	%			1/20/2032				$1,550,000				$1,534,190				$1,423,642
Anchorage Capital 2016-9A ER2, 3M LIBOR + 6.820%+~^#			12.08				7/15/2032				1,500,000				1,485,000				1,352,698
Anchorage Capital CLO LTD 2013-1R, 3M LIBOR + 6.800%+~^#			12.04				10/15/2030				1,000,000				977,213				911,781
Anchorage Capital CLO LTD 2021-20 E, 3M LIBOR + 7.350%+~^#			12.60				1/22/2035				1,000,000				980,000				872,071
Ares CLO LTD 2013-27R2, 3M LIBOR + 6.750%+~^#			12.02				10/30/2034				1,700,000				1,683,000				1,499,640
Bain CAP CR CLO 2020-2R LTD, 3M LIBOR + 6.610%+~^#			11.88				7/19/2034				1,000,000				990,000				878,887
Ballyrock CLO LTD 2019-2R, 3M LIBOR + 6.500%+~^#			11.88				11/20/2030				2,000,000				2,000,000				1,826,840
BlueMountain CLO LTD 2018-23A, 3M LIBOR + 5.650%+~^#			10.90				10/20/2031				1,000,000				1,000,000				854,203
Canyon CLO LTD 2019-2R, 3M LIBOR + 6.750%+~^#			12.01				10/16/2034				1,000,000				1,000,000				895,810
Carbone CLO, LTD 2017-1A, 3M LIBOR + 5.900%+~^#			11.15				1/21/2031				750,000				750,000				648,772
Carlyle US CLO LTD 2019-3R, 3M LIBOR + 6.750%+~^#			12.00				10/20/2032				1,000,000				1,000,000				934,625

 

See accompanying Notes to the Financial Statements.

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

SCHEDULE OF INVESTMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

		EFFECTIVE INTEREST RATE ‡				DUE DATE				PRINCIPAL				COST				FAIR VALUE
Asset-Backed Securities (Continued)
CDO/CLO (Continued)
Carlyle Global Market Strategies 2017-5A, 3M LIBOR + 5.300%+~^#			10.55	%			1/22/2030				$700,000				$700,000				$560,155
CIFC Funding 2020-1 LTD, 3M LIBOR + 6.250%+~^#			11.51				7/15/2036				1,900,000				1,900,000				1,745,182
Galaxy CLO LTD 2017-24A, 3M LIBOR + 5.500%+~^#			10.76				1/15/2031				1,000,000				1,000,000				879,683
GoldenTree Loan Management 2018-3A, 3M LIBOR + 6.500%+~^#			11.75				4/22/2030				1,500,000				1,467,276				1,059,724
GoldenTree Loan Opportunities XI LTD 2015-11A, 3M LIBOR + 5.400%+~^#			10.66				1/18/2031				500,000				500,000				448,423
KKR Financial CLO LTD 2017-20, 3M LIBOR + 5.500%+~^#			10.76				10/16/2030				1,500,000				1,500,000				1,302,789
KKR Financial CLO LTD 34-2, 3M LIBOR + 6.850%+~^#			12.11				7/17/2034				2,000,000				1,980,000				1,809,662
KVK 2016-1A ER2, 3M LIBOR + 7.350%+~^#			12.61				10/16/2034				3,000,000				2,970,000				2,385,237
LCM LTD 2031-30, 3M LIBOR + 6.500%+~^#			11.75				4/21/2031				1,100,000				1,100,000				895,086
Madison Park Funding LTD 2015-19A, 3M LIBOR + 4.350%+~^#			9.62				1/24/2028				1,000,000				1,000,000				962,684
Madison Park Funding LTD 2018-29A, 3M LIBOR + 7.570%+~^			12.83				10/18/2030				2,000,000				1,960,000				1,645,140
Madison Park Funding LTD XXXV 2019-35R E-R, 3M LIBOR + 6.100%+~^#			11.35				4/20/2032				1,400,000				1,400,000				1,322,290
Madison Park Funding LTD 2019-32R E-R, 3M LIBOR + 6.200%+~^#			11.47				1/22/2031				1,000,000				1,000,000				942,537
Magnetite CLO LTD 2016-18A, 3M LIBOR + 7.600%+~^#			12.92				11/15/2028				1,400,000				1,386,000				1,262,370
Octagon 2021-57 LTD, 3M LIBOR + 6.600%+~^#			11.86				10/16/2034				1,500,000				1,500,000				1,322,215
OHA Credit Partners LTD 2015-11A, 3M LIBOR + 7.900%+~^#			13.15				1/20/2031				2,000,000				1,970,323				1,596,160
OHA Loan Funding LTD 2013-1A, 3M LIBOR + 7.900%+~^#			13.17				7/23/2031				1,500,000				1,477,500				1,262,995
Sound Point CLO XVIII 2018-18D, 3M LIBOR + 5.500%+~^#			10.75				1/21/2031				2,000,000				2,000,000				1,325,176
Sound Point CLO LTD 2020-27R, 3M LIBOR + 6.560% E-R+~^#			11.82				10/25/2034				1,400,000				1,372,000				1,131,018
Sound Point CLO LTD Series 2020-1A Class ER, 3M LIBOR + 6.860%+~^#			12.11				7/20/2034				1,600,000				1,584,000				1,315,934
TICP CLO LTD 2018-10A, 3M LIBOR + 5.500%+~^#			10.75				4/22/2030				1,000,000				961,745				884,512
Wellfleet CLO LTD 2020-2R, 3M LIBOR + 7.250%+~^#			12.51				7/17/2034				1,300,000				1,300,000				1,025,772
Wellfleet CLO LTD 2017-3A, 3M LIBOR + 5.550%+~^#			10.81				1/17/2031				1,500,000				1,500,000				990,116

 

See accompanying Notes to the Financial Statements.

 

 

 

13

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

SCHEDULE OF INVESTMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

		EFFECTIVE INTEREST RATE ‡				DUE DATE				PRINCIPAL				COST				FAIR VALUE
Asset-Backed Securities (Continued)
CDO/CLO (Continued)
Wind River 2017-1A ER, 3M LIBOR + 7.060%+~^#			12.32	%			4/18/2036				$2,000,000				$1,960,000				$1,655,266
Wind River CLO LTD 2017-4A, 3M LIBOR + 5.800%+~^#			11.18				11/20/2030				1,000,000				1,000,000				841,477
Total CDO/CLO											50,300,000				49,888,247				42,670,572
Total Asset-Backed Securities											50,300,000				49,888,247				42,670,572
Bank Loans§ — 11.78%:
Beverage, Food and Tobacco — 0.41%:
Florida Food Products 2nd Lien T/L, 3M LIBOR + 8.0000%¤~			13.19				10/18/2029				1,500,000				1,461,415				1,200,000
Total Beverage, Food and Tobacco											1,500,000				1,461,415				1,200,000
Broadcasting and Entertainment — 0.28%:
Dessert Holdings, 3M LIBOR + 7.2500%¤~			12.75				6/8/2029				1,000,000				982,700				830,000
Total Broadcasting and Entertainment											1,000,000				982,700				830,000
Chemicals, Plastics and Rubber — 0.64%:
Colouroz Investment 2 LLC, 3M LIBOR + 4.2500%~			9.52				9/21/2024				2,336,240				2,328,491				607,422
Koppers Holdings Inc., SOFR + 4.0000%¤~			9.16				4/1/2030				1,287,097				1,249,182				1,283,879
Total Chemicals, Plastics and Rubber											3,623,337				3,577,673				1,891,301
Diversified/Conglomerate Manufacturing — 1.43%:
CP Iris Holdco I 2nd Lien T/L (IPS), 3M LIBOR + 7.0000%¤~			12.25				9/21/2029				2,398,019				2,374,039				1,870,455
SunSource, Inc., 3M LIBOR + 8.0000%~			13.20				4/30/2026				2,500,000				2,508,641				2,346,875
Total Diversified/Conglomerate Manufacturing											4,898,019				4,882,680				4,217,330
Diversified/Conglomerate Service — 1.39%:
Quest Software, SOFR + 7.5000%¤~			12.70				1/18/2030				3,395,325				3,349,395				2,223,938
Sonicwall, Inc., 3M LIBOR + 7.5000%~			12.66				5/18/2026				2,008,051				1,998,010				1,860,579
Misys (Finastra), 3M LIBOR + 7.2500%~			12.08				6/16/2025				0				(2,737	)			0
Total Diversified/Conglomerate Service											5,403,376				5,344,668				4,084,517
Ecological — 0.41%:
Patriot Container 2nd Lien T/L, 3M LIBOR + 7.7500%~			12.95				3/20/2026				1,400,000				1,336,159				1,202,250
Total Ecological											1,400,000				1,336,159				1,202,250

 

See accompanying Notes to the Financial Statements.

 

 

 

14

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

SCHEDULE OF INVESTMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

		EFFECTIVE INTEREST RATE ‡				DUE DATE				PRINCIPAL				COST				FAIR VALUE
Bank Loans§ (Continued)
Electronics — 2.53%:
McAfee Enterprise 2nd Lien T/L, 3M LIBOR + 8.2500%~			13.53	%			5/3/2029				$11,567,000				$11,488,368				$7,460,715
Total Electronics											11,567,000				11,488,368				7,460,715
Healthcare, Education and Childcare — 1.10%:
Athenahealth, Inc., SOFR + 3.5000%~			7.82				1/14/2027				218,814				210,609				210,335
Athenahealth, Inc., SOFR + 3.5000%~			8.60				1/26/2029				1,781,185				1,714,391				1,712,165
Medical Solutions T/L, 3M LIBOR + 7.0000%~			11.99				9/22/2027				1,473,684				1,458,947				1,302,368
Total Healthcare, Education and Childcare											3,473,683				3,383,947				3,224,868
Hotels, Motels, Inns and Gaming — 0.63%:
Four Seasons Holdings, Inc., 3M SOFR + 3.2500%~			8.50				11/30/2029				1,860,790				1,834,557				1,863,116
Total Hotels, Motels, Inns and Gaming											1,860,790				1,834,557				1,863,116
Packaging and Containers — 1.47%:
Pretium Package Holdings 2nd Lien T/L (9/21), 3M LIBOR + 6.7500%~			11.76				9/21/2029				2,770,637				2,764,769				1,428,624
Valcour Packaging (MOLD-RITE) 2nd Lien T/L, 3M LIBOR + 7.0000%~			12.09				9/30/2029				5,000,000				4,950,000				2,900,000
Total Packaging and Containers											7,770,637				7,714,769				4,328,624
Personal Transportation — 0.03%:
Bahia De Las Isletas SL, 3M EURIBOR + 10.0000%¤~			9.12				6/30/2025				86,584				84,202				81,915
Bahia De Las Isletas SL, 3M EURIBOR + 10.0000%¤~			9.14				6/30/2025				17,741				18,127				18,391
Total Packaging and Containers											104,325				102,329				100,306
Personal and Non Durable Consumer Products Mfg. Only — 0.36%:
Journey Personal Care Corp., 3M LIBOR + 4.2500%~			9.41				3/1/2028				1,247,348				986,574				1,063,364
Total Packaging and Containers											1,247,348				986,574				1,063,364
Printing and Publishing — 0.30%:
Nielsen Holdings Ltd., 3M SOFR + 5.0000%~			10.00				4/11/2029				998,751				901,991				876,904
Total Hotels, Motels, Inns and Gaming											998,751				901,991				876,904
Transportation — 0.80%:
Worldwide Express 2nd Lien T/L, 3M LIBOR + 7.0000%~			12.16				7/26/2029				3,000,000				2,955,227				2,340,000
Total Transportation											3,000,000				2,955,227				2,340,000
Total Bank Loans											47,847,266				46,953,057				34,683,295

 

See accompanying Notes to the Financial Statements.

 

 

 

15

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

SCHEDULE OF INVESTMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

		EFFECTIVE INTEREST RATE ‡				DUE DATE				PRINCIPAL				COST				FAIR VALUE
Corporate Bonds — 102.78%:
Aerospace and Defense — 5.05%:
American Airlines^			11.75	%			7/15/2025				$5,337,000				$5,490,586				$5,851,930
TransDigm Group, Inc.			7.50				3/15/2027				5,893,000				5,899,465				5,901,179
Triumph Group, Inc.^			9.00				3/15/2028				886,000				886,000				904,578
Triumph Group, Inc.			7.75				8/15/2025				2,289,000				2,289,000				2,206,571
Total Aerospace and Defense											14,405,000				14,565,051				14,864,258
Automobile — 2.02%:
Adient PLC+^			8.25				4/15/2031				870,000				870,000				883,364
Dexko Global Inc.^#			6.63				10/15/2029				1,050,000				777,505				856,563
Faurecia SE+#			7.25				6/15/2026				1,385,000				1,470,577				1,569,879
INA-Holding Schaeffler GmbH & Co KG+#			8.75				5/15/2028				2,350,000				2,531,529				2,643,103
Total Automobile											5,655,000				5,649,611				5,952,909
Automotive — 1.98%:
Ford Motor Company			9.63				4/22/2030				5,000,000				5,896,773				5,816,880
Total Automotive											5,000,000				5,896,773				5,816,880
Banking — 0.27%:
Macquarie Airfinance Holdings Ltd.+^			8.38				5/1/2028				788,000				788,000				797,850
Total Automotive											788,000				788,000				797,850
Broadcasting and Entertainment — 7.76%:
Banijay+			6.50				3/1/2026				3,700,000				3,887,857				4,007,169
Clear Channel Worldwide Holdings Inc.^#			7.75				4/15/2028				3,337,000				3,409,503				2,619,545
Clear Channel Worldwide Holdings Inc.^			7.50				6/1/2029				3,358,000				3,418,837				2,484,869
Cox Media Group^			8.88				12/15/2027				5,357,000				5,541,423				3,748,378
Dish Dbs Corporation#			7.38				7/1/2028				6,000,000				5,446,163				3,210,000
Dish Network Corporation^			11.75				11/15/2027				1,770,000				1,765,570				1,724,945
iHeartCommunications, Inc.			8.38				5/1/2027				2,570,000				2,608,811				1,712,481
Inmarsat Finance PLC+^			6.75				10/1/2026				1,500,000				1,445,668				1,456,975
Reorganized ISA SA+^			6.50				3/15/2030				1,000,000				909,418				910,193
Townsquare Media, LLC^			6.88				2/1/2026				1,000,000				1,017,045				956,307
Total Broadcasting and Entertainment											29,592,000				29,450,295				22,830,862
Buildings and Real Estate — 4.42%:
Knife River Corporation^#			7.75				5/1/2031				1,707,000				1,720,014				1,728,372
Maison Hold Limited+			6.00				10/31/2027				1,045,000				1,419,991				1,023,235
New Enterprise Stone & Lime Co.^			5.25				7/15/2028				949,000				863,215				863,639
New Enterprise Stone & Lime Co.^			9.75				7/15/2028				9,721,000				9,931,304				9,377,654
Total Buildings and Real Estate											13,422,000				13,934,524				12,992,900

 

See accompanying Notes to the Financial Statements.

 

 

 

16

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

SCHEDULE OF INVESTMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

		EFFECTIVE INTEREST RATE ‡				DUE DATE				PRINCIPAL				COST				FAIR VALUE
Corporate Bonds (Continued)
Cargo Transport — 2.18%:
Atlas Corporation+^#			5.50	%			8/1/2029				$4,786,000				$3,924,477				$3,749,448
Railworks Hldgs Lp / Railworks Sr^			8.25				11/15/2028				2,881,000				2,816,802				2,678,014
Total Cargo Transport											7,667,000				6,741,279				6,427,462
Chemicals, Plastics and Rubber — 6.86%:
Consolidated Energy Finance SA+^			6.50				5/15/2026				492,000				440,120				461,250
ITT Holdings LLC^#			6.50				8/1/2029				6,018,000				5,639,805				5,070,045
LSF11 A5 Holdco LLC^			6.63				10/15/2029				3,983,000				3,562,135				3,326,597
Monitchem HoldCo+#			8.75				5/1/2028				300,000				328,904				323,023
Monitchem HoldCo, 3M EURIBOR + 5.2500%+~#			8.49				5/1/2028				215,000				230,074				228,626
Olympus Water US Holding Corporation^			7.13				10/1/2027				1,500,000				1,480,982				1,352,397
Olympus Water US Holding Corporation^#			6.25				10/1/2029				2,348,000				2,168,406				1,697,381
Prince^#			9.00				2/15/2030				3,689,000				3,688,364				2,826,696
Proman AG+^			5.63				10/15/2028				3,427,000				2,957,802				2,913,635
Windsor Holdings III LLC^			8.50				6/15/2030				2,000,000				2,000,000				1,995,200
Total Chemicals, Plastics and Rubber											23,972,000				22,496,592				20,194,850
Commercial Services — 0.12%:
Apcoa Parking Holdings+			4.63				1/15/2027				385,000				455,648				364,994
Total Commercial Services											385,000				455,648				364,994
Containers, Packaging and Glass — 5.20%:
Ardagh Packaging+			4.75				7/15/2027				100,000				106,310				100,518
Novolex Holdings, Inc.^			8.75				4/15/2030				7,423,000				6,755,659				6,547,373
Packaging Holdings Ltd.^			7.13				8/15/2028				1,262,000				1,103,121				1,077,432
SCI Packaging Inc.^#			7.88				8/15/2026				5,197,000				5,197,000				5,156,432
SCI Packaging Inc.^			9.25				4/15/2027				1,327,000				1,216,600				1,224,662
Trident Parent, LLC^#			12.75				12/31/2028				1,151,000				1,156,580				1,193,587
Total Containers, Packaging, and Glass											16,460,000				15,535,270				15,300,004
Diversified/Conglomerate Manufacturing — 0.92%:
Chart Industries Inc.^			7.50				1/1/2030				948,000				949,653				967,168
Chart Industries Inc.^#			9.50				1/1/2031				500,000				526,663				530,507
Heat Exchangers+			7.78				10/9/2025				652,344				703,873				533,780
International Desi+			6.50				11/15/2025				650,000				748,480				684,457
Total Diversified/Conglomerate Manufacturing											2,750,344				2,928,669				2,715,912
Diversified/Conglomerate Service — 8.48%:
Albion Fing 1 S A R L & Aggre Sr+^			8.75				4/15/2027				1,800,000				1,808,159				1,663,596
Apollo Asset Management, Inc.^			6.25				1/15/2028				3,000,000				2,772,627				2,810,863
Bcp V Modular Ser+			6.75				11/30/2029				1,000,000				1,155,455				823,858
Engineering Group+#			11.13				5/15/2028				1,485,000				1,627,861				1,625,427
Global Infrastructure Solutions, Inc.^			7.50				4/15/2032				5,298,000				4,747,686				4,503,310
Libra Group Bhd+			5.00				5/15/2027				700,000				850,082				649,495

 

See accompanying Notes to the Financial Statements.

 

 

 

17

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

SCHEDULE OF INVESTMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

		EFFECTIVE INTEREST RATE ‡				DUE DATE				PRINCIPAL				COST				FAIR VALUE
Corporate Bonds (Continued)
Diversified/Conglomerate Service (Continued)
Presidio, Inc.^			8.25	%			2/1/2028			$	5,462,000			$	5,423,164			$	5,200,356
Sabre Holdings^			9.25				4/15/2025				213,000				213,717				198,644
Sabre Holdings Corporation^			11.25				12/15/2027				317,000				311,621				268,658
Summer BC Holdco+			9.25				10/31/2027				1,666,932				2,093,387				1,487,001
United Site Services^#			8.00				11/15/2029				2,397,000				2,374,500				1,348,312
Verisure Midholding AB+#			7.13				2/1/2028				915,000				994,381				999,946
Verisure Midholding+			5.25				2/15/2029				3,575,000				4,323,743				3,374,408
Total Diversified/Conglomerate Service											27,828,932				28,696,383				24,953,874
Electronics — 0.65%:
Veritas Bermuda Ltd.^#			7.50				9/1/2025				2,356,000				2,197,587				1,912,146
Total Electronics											2,356,000				2,197,587				1,912,146
Finance — 6.61%:
Avolon Holdings+^			6.50				9/15/2024				3,820,964				3,384,330				3,497,519
CPUK FINANCE LTD+#			5.88				2/28/2047				235,000				292,809				282,901
Ford Motor Co.#			6.95				6/10/2026				1,500,000				1,500,000				1,508,460
Galaxy Bidco Ltd.+			6.50				7/31/2026				500,000				666,114				576,137
Icahn Enterprises LP#			6.25				5/15/2026				1,762,000				1,660,112				1,603,629
OneMain Finance Corporation+#			4.50				8/28/2051				965,000				1,007,532				1,043,864
OneMain Finance Corporation#			6.13				3/15/2024				1,667,000				1,649,593				1,661,377
PRA Group^#			7.38				9/1/2025				473,000				420,109				449,639
PRA Group^#			8.38				2/1/2028				4,518,000				4,245,111				4,100,085
Travelex¤+			12.50				8/5/2025				2,925,679				3,752,351				4,495,900
Travelex¤+#>			8.00				5/15/2024				4,600,000				5,097,344				0
TVL FINANCE PLC+~#			8.74				4/28/2028				100,000				107,767				106,669
TVL FINANCE PLC+#			10.25				4/28/2028				100,000				122,720				123,932
Total Finance											23,166,643				23,905,892				19,450,112
Healthcare, Education and Childcare — 7.30%:
AdaptHealth LLC^#			4.63				8/1/2029				602,000				492,844				480,498
AdaptHealth LLC^#			5.13				3/1/2030				2,729,000				2,317,069				2,210,490
Apollo Global Management, Inc.^#			6.75				4/15/2025				588,000				546,635				542,495
Athena Health Inc.^#			6.50				2/15/2030				7,619,000				6,067,218				6,412,694
Bausch Health Companies Inc.+^			9.00				12/15/2025				2,707,000				2,701,864				2,360,693
Bausch Health Companies Inc.+^			9.00				1/30/2028				337,000				725,315				337,607
Bausch Health Companies Inc.+^			11.00				9/30/2028				598,000				1,086,680				423,085
Bausch Health Companies Inc.+^			14.00				10/15/2030				118,000				152,951				70,210
Cidron Aida Finco+			6.25				4/1/2028				1,650,000				2,275,266				1,821,517
Community Health System Inc.^			6.88				4/15/2029				286,000				286,000				179,788
Consensus Cloud Solutions Inc.^			6.50				10/15/2028				717,000				617,647				613,035
Neogen Corporation^			8.63				7/20/2030				1,654,000				1,654,000				1,777,365
Nidda BondCo GmbH+#			7.50				8/21/2026				500,000				512,849				542,191
Radiology Partners Inc.^			9.25				2/1/2028				6,061,000				6,385,673				2,215,165

 

See accompanying Notes to the Financial Statements.

 

 

 

18

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

SCHEDULE OF INVESTMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

		EFFECTIVE INTEREST RATE ‡				DUE DATE				PRINCIPAL				COST				FAIR VALUE
Corporate Bonds (Continued)
Healthcare, Education and Childcare (Continued)
RP Escrow Issuer LLC^#			5.25	%			12/15/2025			$	2,035,000			$	1,432,321			$	1,501,219
Total Healthcare, Education and Childcare											28,201,000				27,254,332				21,488,052
Home and Office Furnishings, Housewares, and Durable Consumer Products — 3.35%:
BCPE Ulysses Intermediate Inc^#			7.75				4/1/2027				8,121,000				7,772,233				7,150,622
LBM Borrower, LLC^#			6.75				5/15/2026				1,176,000				1,010,610				693,831
Staples Inc.^			10.75				4/15/2027				3,478,000				3,559,633				2,021,640
Total Home and Office Furnishings, Housewares, and Durable Consumer Products											12,775,000				12,342,476				9,866,093
Leisure, Amusement, Entertainment — 3.66%:
Carnival Corp.+^#			6.00				5/1/2029				1,873,000				1,506,956				1,672,217
Carnival Corp.+			10.13				2/1/2026				750,000				918,491				858,095
Center Parcs+#			6.50				8/28/2050				825,000				1,154,813				992,850
Center Parcs+#			6.14				2/28/2047				235,000				292,798				281,445
Golden Entertainment Inc.^			7.63				4/15/2026				2,000,000				1,973,127				2,008,540
Motion Topco Limited+#			7.38				6/15/2030				1,600,000				1,723,284				1,734,663
Silk TopCo AS+			3.38				2/24/2025				1,000,000				875,490				1,003,754
Viking Holdings Ltd.+^			7.00				2/15/2029				2,384,000				2,017,626				2,217,120
Total Leisure, Amusement, Entertainment											10,667,000				10,462,585				10,768,684
Lodging — 0.07%:
SANI/IKOS Financial Holdings+#			5.63				12/15/2026				215,000				253,957				215,605
Total Lodging											215,000				253,957				215,605
Machinery (Non-Agriculture, Non-Construct, Non-Electronic) — 0.97%:
Emerald JV Holdings LP^#			6.63				12/15/2030				2,371,000				2,371,000				2,350,254
Harsco Corp.^			5.75				7/31/2027				589,000				521,400				512,636
Total Machinery (Non-Agriculture, Non-Construct, Non-Electronic)											2,960,000				2,892,400				2,862,890
Mining, Steel, Iron and Non-Precious Metals — 7.96%:
Consol Energy Inc.^			11.00				11/15/2025				1,635,000				1,690,476				1,660,343
Coronado Global Resources Inc.+^			10.75				5/15/2026				4,846,000				5,115,026				4,988,960
First Quantum Minerals+^			7.50				4/1/2025				7,774,000				7,610,167				7,764,327
First Quantum Minerals+^			6.88				10/15/2027				200,000				200,000				195,100
First Quantum Minerals+^#			8.63				6/1/2031				4,045,000				4,045,000				4,145,640
Hecla Mining Company			7.25				2/15/2028				4,699,000				4,984,054				4,656,615
Total Mining, Steel, Iron and Non-Precious Metals											23,199,000				23,644,723				23,410,985

 

See accompanying Notes to the Financial Statements.

 

 

 

19

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

SCHEDULE OF INVESTMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

		EFFECTIVE INTEREST RATE ‡				DUE DATE				PRINCIPAL				COST				FAIR VALUE
Corporate Bonds (Continued)
Oil and Gas — 16.29%:
AmeriGas Partners LP^#			9.38	%			6/1/2028			$	1,273,000			$	1,273,000			$	1,292,884
Antero Resources Corp.^			7.63				2/1/2029				930,000				984,597				943,530
Calumet Specialty Products^			9.25				7/15/2024				2,850,000				2,816,171				2,851,700
CGG SA+			7.75				4/1/2027				1,500,000				1,787,033				1,370,103
Energy Transfer LP~			7.13				11/15/2165				2,211,000				1,890,405				1,874,755
Enlink Midstream Partners LP			5.60				4/1/2044				5,413,000				3,616,503				4,452,193
Enlink Midstream Partners LP#			5.45				6/1/2047				3,000,000				2,397,397				2,453,160
Genesis Energy LP			7.75				2/1/2028				3,408,000				3,194,680				3,241,615
Genesis Energy LP			8.00				1/15/2027				2,639,000				2,639,738				2,573,470
Genesis Energy LP#			8.88				4/15/2030				1,000,000				977,514				977,005
Harvest Midstream I L P^#			7.50				9/1/2028				2,440,000				2,429,935				2,418,363
Hilcorp Energy I L P^			6.25				11/1/2028				3,202,000				2,885,158				3,014,767
KCA Deutag+			9.88				12/1/2025				1,179,286				1,179,286				1,167,493
KCA Deutag International Limited+			15.00				12/1/2027				917,617				917,617				906,147
KCA Deutag (12.06), SOFR + 9.0000%+~			12.06				12/1/2025				1,343,874				1,343,874				1,347,234
Nabors Industries LTD+^			7.25				1/15/2026				802,000				776,105				748,683
Nabors Industries LTD+^#			7.50				1/15/2028				1,630,000				1,473,361				1,438,475
NGL Energy Finance Corp.^			7.50				2/1/2026				3,031,000				3,087,306				2,985,316
Occidental Pete Corp.			8.50				7/15/2027				4,523,000				4,557,029				4,885,790
Occidental Pete Corp.			7.88				9/15/2031				2,500,000				2,631,664				2,787,007
Range Res Corp			8.25				1/15/2029				494,000				499,621				512,470
Waldorf Production UK LD+#			9.75				10/1/2024				556,679				555,324				555,009
Weatherford Intl Ltd Bermuda Sr Glbl+^			8.63				4/30/2030				3,092,000				3,106,378				3,139,515
Total Oil and Gas											49,935,456				47,019,696				47,936,684
Personal, Food, and Miscellaneous — 0.34%:
Brinker International^#			8.25				7/15/2030				998,000				997,288				983,359
Total Personal Transportation											998,000				997,288				983,359
Personal Transportation — 0.12%:
Naviera Armas¤+			15.35				3/31/2026				486,912				629,170				361,297
Total Personal Transportation											486,912				629,170				361,297
Printing and Publishing — 2.64%:
Cimpress PLC+			7.00				6/15/2026				2,069,000				2,069,000				1,877,618
Getty Images Inc.^#			9.75				3/1/2027				5,972,000				6,096,897				5,897,712
Total Printing and Publishing											8,041,000				8,165,897				7,775,330
Retail Store — 0.45%:
Life Time, Inc.^			8.00				4/15/2026				861,000				829,067				850,097
Marcolin S.p.A+			6.13				11/15/2026				475,000				578,239				462,602
Total Retail Store											1,336,000				1,407,306				1,312,699

 

See accompanying Notes to the Financial Statements.

 

 

 

20

---

Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

SCHEDULE OF INVESTMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

		EFFECTIVE INTEREST RATE ‡				DUE DATE				PRINCIPAL				COST				FAIR VALUE
Corporate Bonds (Continued)
Telecommunications — 3.83%:
Altice France Holding S.A.+^#			10.50	%			5/15/2027			$	4,440,000			$	4,421,792			$	2,688,553
Commscope Inc.^			8.25				3/1/2027				1,173,000				1,137,881				937,914
C&W Seniot Financing Designated Activity Co.+^#			6.88				9/15/2027				1,101,000				969,090				960,622
Digicel Limited ¤+^>			8.25				9/30/2025				2,500,000				2,491,364				0
Frontier Communications Corporation^			8.75				5/15/2030				774,000				774,000				756,418
Frontier Communications Hldgs Sr Sec Glbl^#			6.00				1/15/2030				3,976,000				3,333,469				2,924,998
Telefonica SA+~#			7.13				11/23/2171				1,400,000				1,524,573				1,558,219
Uniti Group LP / Uniti Group Finance Inc.^			6.50				2/15/2029				330,000				330,000				233,575
Viasat^			6.50				7/15/2028				790,000				790,000				669,525
Vodafone Group PLC+~			6.25				10/3/2078				550,000				542,025				542,438
Total Telecommunications											17,034,000				16,314,194				11,272,262
Transportation — 2.01%:
Carriage Purchaser Inc.^#			7.88				10/15/2029				7,106,000				6,346,424				5,341,462
Castor S.p.A., 3M EURIBOR + 5.250%+~			8.78				2/15/2029				477,000				542,554				484,068
Titan Holdings II+			5.13				7/15/2029				113,000				133,866				97,843
Total Transportation											7,696,000				7,022,844				5,923,373
Utilities — 1.27%:
Electricite de France SA+~#			9.13				12/15/2171				350,000				350,000				358,918
Electricite de France SA+~#			4.00				10/4/2171				700,000				715,783				739,575
Talen Energy Supply, LLC^#			8.63				6/1/2030				2,537,000				2,558,241				2,625,795
Total Utilities											3,587,000				3,624,024				3,724,288
Total Corporate Bonds											340,579,287				335,272,466				302,476,614
Total Fixed Income											438,726,553				432,113,770				379,830,481
Total Investments															433,217,158				381,382,678
Other assets and liabilities — (29.59)%																			(87,081,461	)
Net Assets — 100%																			$294,301,217

 

Percentages

are calculated as a percent of net assets applicable to common shareholders.

 

LIBOR

– London Interbank Offered Rate

EURIBOR

– Euro Interbank Offered Rate

 

*	Securities are non-income producing.

‡	The effective interest rates are based on settled commitment amount.

¤	Value determined using significant unobservable inputs, security is categorized as Level 3.

+	Foreign security.

 

See accompanying Notes to the Financial Statements.

 

 

 

21

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

SCHEDULE OF INVESTMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

^	Security exempt from registration under Rule 144a of the Securities Act of 1933. These securities may only be resold in transactions exempt from registration, normally to qualified institutional buyers.

~	Variable rate security. The interest rate shown is the rate in effect at June 30, 2023.

#	All or a portion of the security is segregated as collateral for the credit facility.

§

Bank loans are exempt from registration under the Securities Act of 1933, as amended, but contain certain restrictions on resale and cannot be sold publicly. These loans pay interest at rates which adjust periodically. The interest rates shown for bank loans are the current interest rates at June 30, 2023. Bank loans are also subject to mandatory and/or optional prepayment which cannot be predicted. As a result, the remaining maturity may be substantially less than the stated maturity shown.

>	Defaulted security.

Distributions of investments by country of risk. Percentage of assets are expressed by market value excluding cash and accrued income as of June 30, 2023.

 

		United States of America			81.2%
		United Kingdom			5.5%
		Zambia			3.2%
		France			2.4%
		Australia			1.3%
		Germany			1.2%
		Sweden			1.1%
		Italy			1.0%
		(Individually less than 1%)			3.1%
					100.0%

A summary of outstanding derivatives at June 30, 2023 is as follows:

Schedule of Open Forward Foreign Exchange Contracts

June 30, 2023

 

CURRENCY TO BE RECEIVED						CURRENCY TO BE DELIVERED(1)								COUNTERPARTY OF CONTRACT		FORWARD SETTLEMENT DATE				UNREALIZED APPRECIATION / (DEPRECIATION)
	29,645,202			USD			30,080,882				EUR			JP Morgan Chase			7/17/2023			$	(435,680	)
	12,589,775			USD			12,765,898				GBP			Morgan Stanley			7/17/2023				(176,124	)
																				$	(611,804	)

⁽¹⁾ Values are listed in U.S. dollars.

 

See accompanying Notes to the Financial Statements.

 

 

 

22

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

NOTES TO THE FINANCIAL STATEMENTS

 

June 30, 2023 (Unaudited)

 

 

 

 

23

---

Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

 

 

 

24

---

Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

 

DESCRIPTION		LEVEL 1				LEVEL 2				LEVEL 3				TOTAL INVESTMENTS
Assets:
Equities:
Common Stocks		$	–			$	1,432,480			$	–			$	1,432,480
Warrants			–				119,717				–				119,717
Total Equities:			–				1,552,197				–				1,552,197
Fixed Income:
Asset-Backed Securities			–				42,670,572				–				42,670,572
Bank Loans			–				27,174,717				7,508,578				34,683,295
Corporate Bonds			–				297,619,417				4,857,197				302,476,614
Total Fixed Income			–				367,464,706				12,365,775				379,830,481
Forward Foreign Exchange Contracts			–				–				–				–
Total Assets:		$	–			$	369,016,903			$	12,365,775			$	381,382,678
Liabilities:
Forward Foreign Exchange Contracts:		$	–			$	(611,804	)		$	–			$	(611,804	)
Total Liabilities:		$	–			$	(611,804	)		$	–			$	(611,804	)

 

 

 

25

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of June 30, 2023. A significant change in third party information could result in a significantly lower or higher value of such Level 3 financial instruments:

 

TYPE OF ASSETS		FAIR VALUE AS OF JUNE 30, 2023				VALUATION TECHNIQUE(S)		UNOBSERVABLE INPUT
Equities:
ESC CB 144A High Ridge		$	–			Expected Transaction		$0.00; Value derived from pending receipt
		$	–

Although the Fund believes the valuation methods described above are appropriate, the use of different methodologies or assumptions to determine fair value could result in different estimates of fair value at the reporting date.

The Fund discloses transfers between levels based on valuations at the end of the reporting period. The following is a reconciliation of Level 3 investments based upon the inputs used to determine fair value:

 

BALANCE AT DECEMBER 31, 2022

TRANSFERS INTO LEVEL 3

TRANSFERS OUT OF LEVEL 3

PURCHASES

SALES

ACCRETION OF DISCOUNT

REALIZED GAIN / (LOSS)

CHANGE IN UNREALIZED APPRECIATION / (DEPRECIATION) ON INVESTMENTS

BALANCE AT JUNE 30, 2023

CHANGE IN UNREALIZED APPRECIATION / (DEPRECIATION) FROM INVESTMENTS HELD AS OF JUNE 30, 2023

Equities

ESC CB 144A High Ridge

$

41,748

$

–

$

–

$

–

$

–

$

–

$

–

$

(41,748

)

$

–

$

(41,748

)

Naviera Armas Class B2 Shares Stapled To 1.5L SSNS

–

–

–

–

–

–

–

–

–

–

Naviera Armas Class B3 Shares

–

–

–

–

–

–

–

–

–

–

Naviera Armas A3 Shares

–

–

–

–

–

–

–

–

–

–

Naviera Armas Class A2 Shares Stapled To 1.5L SSNS

–

–

–

–

–

–

–

–

–

–

Travelex Private Equity

–

–

–

–

–

–

–

–

–

–

Common Stocks

41,748

–

–

–

–

–

–

(41,748

)

–

(41,748

)

Travelex Topco Limited

120,666

–

(120,666

)

–

–

–

–

–

–

–

Warrants

120,666

–

(120,666

)

–

–

–

–

–

–

–

Total Equities

162,414

–

(120,666

)

–

–

–

–

(41,748

)

–

(41,748

)

Bank Loans

Bahia De Las Isletas SL

–

–

–

95,089

(13,233

)

867

1,479

(2,287

)

81,915

(2,287

)

Bahia De Las Isletas SL

–

–

–

18,083

–

44

–

264

18,391

264

Clinigen

1,177,372

–

–

–

(1,293,438

)

764

(66,095

)

181,397

–

–

CP Iris Holdco I 2nd Lien T/L (IPS)

2,014,336

–

–

–

–

–

–

(143,881

)

1,870,455

(143,881

)

Dessert Holdings

900,000

–

–

–

–

–

–

(70,000

)

830,000

(70,000

)

Florida Food Products 2nd Lien T/L

1,350,000

–

–

–

–

1,844

–

(151,844

)

1,200,000

(151,844

)

Kenan Advantage Group 2nd Lien T/L

4,745,132

–

–

–

(5,171,806

)

5,831

105,422

315,421

–

–

Koppers Holdings, Inc.

–

–

–

1,251,613

(3,226

)

700

95

34,697

1,283,879

34,697

Quest Software

–

3,371,352

–

–

(1,613,907

)

–

(560,972

)

1,027,465

2,223,938

1,027,465

Valcour Packaging (MOLD-RITE) 2nd Lien T/L

3,750,000

–

(3,750,000

)

–

–

–

–

–

–

–

Bank Loans

13,936,840

3,371,352

(3,750,000

)

1,364,785

(8,095,610

)

10,050

(520,071

)

1,191,232

7,508,578

694,414

 

 

 

26

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

		BALANCE AT DECEMBER 31, 2022				TRANSFERS INTO LEVEL 3				TRANSFERS OUT OF LEVEL 3				PURCHASES				SALES				ACCRETION OF DISCOUNT				REALIZED GAIN / (LOSS)				CHANGE IN UNREALIZED APPRECIATION / (DEPRECIATION) ON INVESTMENTS				BALANCE AT JUNE 30, 2023				CHANGE IN UNREALIZED APPRECIATION / (DEPRECIATION) FROM INVESTMENTS HELD AS OF JUNE 30, 2023
Corporate Bonds
Digicel Limited			–				–				–				–				–				–				–				–				–				–
Naveria Armas			357,193				–				–				30,860				–				(10,835	)			–				(15,921	)			361,297				(15,921	)
Travelex			–				–				–				–				–				–				–				–				–				–
Travelex			4,011,338				–				–				460,102				–				25,788				–				(1,328	)			4,495,900				(1,328	)
Corporate Bonds			4,368,531				–				–				490,962				–				14,953				–				(17,249	)			4,857,197				(17,249	)
Total		$	18,467,785			$	3,371,352			$	(3,870,666	)		$	1,855,747			$	(8,095,610	)		$	25,003			$	(520,071	)		$	1,132,235			$	12,365,775			$	635,417

 

 

 

 

27

---

Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

 

 

 

28

---

Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

 

H.

Disclosures about Offsetting Assets and Liabilities

The following is a summary by counterparty of the fair value of derivative investments subject to Master Netting Agreements and collateral pledged (received), if any, as of June 30, 2023.

 

AMOUNTS NOT OFFSET IN THE STATEMENT OF ASSETS AND LIABILITIES

ASSETS:

GROSS AMOUNT OF RECOGNIZED ASSETS

GROSS AMOUNT OFFSET IN THE STATEMENT OF ASSETS AND LIABILITIES

NET AMOUNTS PRESENTED IN THE STATEMENT OF ASSETS AND LIABILITIES

FINANCIAL INSTRUMENTS

COLLATERAL RECEIVED

NET AMOUNT

Forward foreign exchange contracts

$

–

$        –

$

–

$

–

$        –

AMOUNTS NOT OFFSET IN THE STATEMENT OF ASSETS AND LIABILITIES

LIABILITIES:

GROSS AMOUNT OF RECOGNIZED LIABILITIES

GROSS AMOUNT OFFSET IN THE STATEMENT OF ASSETS AND LIABILITIES

NET AMOUNTS PRESENTED IN THE STATEMENT OF ASSETS AND LIABILITIES

FINANCIAL INSTRUMENTS

COLLATERAL PLEDGED

NET AMOUNT*

Forward foreign exchange contracts

$

611,804

$

–

$

611,804

$

–

$

–

$

(611,804

)

 

*

The net amount represents the amount owed by the Fund to the counterparty as of June 30, 2023.

 

 

 

29

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

 

 

 

30

---

Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

 

 

 

31

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

 

 

 

32

---

Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

 

June 30, 2023 (Unaudited)

 

 

 

 

33

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

FUND DIVIDEND REINVESTMENT PLAN

 

 

 

 

 

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Barings Global Short Duration High Yield Fund 2023 Semi-Annual Report

 

 

JOINT PRIVACY NOTICE OF BARINGS MANAGEMENT LLC AND

 

BARINGS GLOBAL SHORT DURATION HIGH YIELD FUND

 

This privacy notice is being provided on behalf of Barings LLC and its affiliates: Barings Securities LLC; Barings Australia Pty Ltd; Barings Advisers (Japan) KK; Barings Investment Advisers (Hong Kong) Limited; Barings Funds Trust; Barings Global Short Duration High Yield Fund; Barings Corporate Investors and Barings Participation Investors (together, for purposes of this privacy notice, “Barings”).

When you use Barings you entrust us not only with your hard-earned assets but also with your personal and financial data. We consider your data to be private and confidential, and protecting its confidentiality is important to us. Our policies and procedures regarding your personal information are summarized below.

We may collect non-public personal information about you from:

 

∎

Applications or other forms, interviews, or by other means;

 

∎

Consumer or other reporting agencies, government agencies, employers or others;

 

∎

Your transactions with us, our affiliates, or others; and

 

∎

Our Internet website.

We may share the financial information we collect with our financial service affiliates, such as insurance companies, investment companies and securities broker-dealers. Additionally, so that we may continue to offer you products and services that best meet your investment needs and to effect transactions that you request or authorize, we may disclose the information we collect, as described above, to companies that perform administrative or marketing services on our behalf, such as transfer agents, custodian banks, service providers or printers and mailers that assist us in the distribution of investor materials or that provide operational support to Barings. These companies are required to protect this information and will use this information only for the services for which we hire them, and are not permitted to use or share this information for any other purpose. Some of these companies may perform such services in jurisdictions other than the United States. We may share some or all of the information we collect with other financial institutions with whom we jointly market products. This may be done only if it is permitted by the state in which you live. Some disclosures may be limited to your name, contact and transaction information with us or our affiliates.

Any disclosures will be only to the extent permitted by federal and state law. Certain disclosures may require us to get an “opt-in” or “opt-out” from you. If this is required, we will do so before information is shared. Otherwise, we do not share any personal information about our customers or former customers unless authorized by the customer or as permitted by law.

We restrict access to personal information about you to those employees who need to know that information to provide products and services to you. We maintain physical, electronic and procedural safeguards that comply with legal standards to guard your personal information. As an added measure, we do not include personal or account information in non-secure e-mails that we send you via the Internet without your prior consent. We advise you not to send such information to us in non-secure e-mails.

This joint notice describes the privacy policies of Barings, the Funds and Barings Securities LLC. It applies to all Barings and the Funds accounts you presently have, or may open in the future, using your social security number or federal taxpayer identification number – whether or not you remain a shareholder of our Funds or as an advisory client of Barings. As mandated by rules issued by the Securities and Exchange Commission, we will be sending you this notice annually, as long as you own shares in the Funds or have an account with Barings.

Barings Securities LLC is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Investors may obtain information about SIPC including the SIPC brochure by contacting SIPC online at www.sipc.org or calling (202)-371-8300. Investors may obtain information about FINRA including the FINRA Investor Brochure by contacting FINRA online at www.finra.org or by calling (800) 289-9999.

December 2022

 

 

 

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		Barings Global Short Duration High Yield Fund

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(b)

Not applicable.

Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semi-annual reports.

Item 6. Investments.

 

(a)	Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

 

(b)	Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable for semi-annual reports.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable for semi-annual reports.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable for this filing.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable for this filing.

 

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Item 11. Controls and Procedures.

 

(a)

The principal executive officer and the principal financial officer of the Registrant evaluated the effectiveness of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report and based on that evaluation have concluded that such disclosure controls and procedures are effective to provide reasonable assurance that material information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(b)

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies

The registrant did not engage in securities lending activities during the fiscal period reported on this Form N-CSR.

Item 13. Exhibits.

 

(a)	(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit.

The Registrant has posted its Code of Ethics on its website at www.barings.com/bgh

(2) A separate certification for each principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons.

(4) There was no change in the registrant’s independent public accountant for the period covered by this report.

 

(b)	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Filed herewith.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant): Barings Global Short Duration High Yield Fund

 

By (Signature and Title)*:		/s/ Sean Feeley
		Sean Feeley, President

Date: September 8, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*:		/s/ Sean Feeley
		Sean Feeley, President

Date: September 8, 2023

 

By (Signature and Title)*:		/s/ Christopher Hanscom
		Christopher Hanscom, Chief Financial Officer

Date: September 8, 2023

 

*	Print the name and title of each signing officer under his or her signature.

 

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EX.99.CERT

CERTIFICATIONS

I, Sean Feeley, certify that:

 

1.	I have reviewed this report on Form N-CSR of Barings Global Short Duration High Yield Fund;

 

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.	The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: September 8, 2023						/s/ Sean Feeley Sean Feeley President

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CERTIFICATIONS

I, Christopher Hanscom, certify that:

 

1.	I have reviewed this report on Form N-CSR of Barings Global Short Duration High Yield Fund;

 

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

(d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.	The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: September 8, 2023						/s/ Christopher Hanscom Christopher Hanscom Chief Financial Officer

 

EX.99.906CERT

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of the Barings Global Short Duration High Yield Fund, does hereby certify, to such officer’s knowledge, that the report on Form N-CSR of the Barings Global Short Duration High Yield Fund for the period ended June 30, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable, and that the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Barings Global Short Duration High Yield Fund for the stated period.

 

/s/ Sean Feeley				/s/ Christopher Hanscom
Sean Feeley				Christopher Hanscom
President				Chief Financial Officer
Barings Global Short Duration High Yield Fund				Barings Global Short Duration High Yield Fund

Date: September 8, 2023

This statement accompanies this report on Form N-CSR pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed as filed by Barings Global Short Duration High Yield Fund for purposes of Section 18 of the Securities Exchange Act of 1934.

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