UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number(s) 811-22845
Babson Capital Funds Trust
(Exact Name of Registrant as Specified in Charter)
550 South Tryon Street
Suite 3300
Charlotte, NC 28202
(Address of Principal Executive Offices)
Registrants telephone number, including area code: (704) 805-7200
Janice M. Bishop
Secretary and Chief Legal Officer
c/o Babson Capital Management LLC
Independence Wharf
470 Atlantic Avenue, Boston MA 02210
(Name and Address of Agent for Service)
Date of fiscal year end: June 30
Date of reporting period: June 30, 2015
Item 1. | Reports to Stockholders. |
BABSON CAPITAL FUNDS TRUST
Annual Report
June 30, 2015
BCFT Service Providers
ADVISER
Babson Capital Management LLC
550 South Tryon Street
Suite 3300
Charlotte, NC 28202
SUB-ADVISER
Babson Capital Global Advisors Limited
61 Aldwych
London, UK
WC2B 4AE
COUNSEL TO THE TRUST
Ropes & Gray LLP
Prudential Tower
800 Boylston Street
Boston, MA 02110
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
200 Berkley Street
Boston, MA 02116
CUSTODIAN
State Street Bank & Trust
One Lincoln Street
Boston, MA 02111
TRANSFER AGENT AND REGISTRAR
State Street Bank & Trust
One Lincoln Street
Boston, MA 02111
FUND ADMINISTRATION/ACCOUNTING
State Street Bank & Trust
One Lincoln Street
Boston, MA 02111
FUND DISTRIBUTOR
ALPS Distributors, Inc.
1290 Broadway
Suite 1100
Denver, CO 80203
BLUE SKY ADMINISTRATION
Boston Financial Data Services
2000 Crown Colony Drive
Quincy, MA 02169
PROXY VOTING POLICIES & PROCEDURES
The Trustees of Babson Capital Funds Trust (the Trust) have delegated proxy voting responsibilities relating to the voting of securities held by the Trust to Babson Capital Management LLC (Babson Capital). A description of Babson Capitals proxy voting policies and procedures is available (1) without charge, upon request, by calling, toll-free 1-877-766-0014; (2) on the Trusts website at http://www.BabsonCapital.com; and (3) on the U.S. Securities and Exchange Commissions (SEC) website at http://www.sec.gov.
FORM N-Q
The Trust will file its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This information is available (i) on the SECs website at http://www.sec.gov; and (ii) at the SECs 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 Trusts website at http://www.BabsonCapital.com or upon request by calling, toll-free, 1-877-766-0014.
Babson Global Floating Rate Fund 2015 Annual Report
Investment Objective
The investment objective of the Babson Global Floating Rate Fund (Global Floating Rate Fund or the Fund) is to seek a high level of current income. Preservation of capital is a secondary goal.
Portfolio Management Commentary
How did the Fund perform?
● | The Fund reported a net total rate of return for the annual reporting period from July 1, 2014 through June 30, 2015 of 1.28% and underperformed the Credit Suisse Global Loan Benchmark, which returned 2.42%.1 |
What factors influenced performance of the Fund?
● | For the annual reporting period, the Funds U.S. holdings in both senior secured loans and, to a lesser extent, high yield bonds were the primary detractors from performance relative to the Benchmark. The Funds European holdings, however, positively impacted Fund performance as a result of good credit selection within the senior secured loan asset class. European issuers represented eight out of the top ten contributors to Fund performance for this time period. |
● | U.S. senior secured loans and high yield bonds of commodity-related issuers faced significant selling pressure over the past twelve months. The Fund was negatively impacted by its exposure to these credits relative to the Benchmark. Seven of the Funds bottom ten contributors to its underperformance were commodity-related issuers. In our view, the underlying credit fundamentals for many of these issuers imply a higher value than current trading levels. We feel the selling was indiscriminate at times. While it is difficult to predict the price of commodities, we believe that most of these companies have sufficient liquidity and flexibility in their capital expenditure and operating budgets to withstand the volatility in commodity prices for longer than their current prices would suggest. |
Describe recent portfolio activity.
● | The number of holdings in the portfolio remained relatively unchanged over the year even as the Fund experienced an almost 50% increase in assets. Despite the Funds increased size, its positioning across geographies remained fairly consistent and the Fund continues to maintain significant positions in high conviction credits. |
● | The Fund remained overweight to European assets relative to the global senior secured loan market. Even with the overweight positioning, the Fund increased its exposure to U.S. assets over the past twelve months as prices widened more significantly than Europe which, in our opinion, positions the Fund to capture the best risk-adjusted returns from the market. |
● | Over the past twelve months, the Funds top three industry exposures have remained the same except for slight shifts in positioning with a decrease in the Healthcare, Education and Childcare sector by 0.5%, an increase to the Diversified / Conglomerate Service sector by 1.2% and a decrease to the non-bank related Finance sector by 4.4%. |
Describe portfolio positioning at period end.
● | The Fund finished the annual reporting period, June 30, 2015, with a 79.9% weighting to global senior secured loans. The remainder of the portfolio was invested in global high yield bonds (13.7%), primarily senior secured bonds. A portion of the Fund is invested in floating rate, high yield bonds (4.2%) predominantly issued by European companies, which increases the total floating rate exposure of the portfolio to 83.7%. |
1. | Total return describes the return to an investor based on the Class Y net expense ratio and includes the reinvestment of dividends and capital gains. Performance results reflect past performance and are no guarantee of future results. Current performance may be lower or higher than the performance data quoted. The net asset value (NAV) will fluctuate with market conditions. All returns 1-year or less are cumulative. The Credit Suisse Global Loan Benchmark is a market capitalization weighted average of the Credit Suisse Leveraged Loan Index and the Credit Suisse Western European Leveraged Loan Index. The Credit Suisse Leveraged Loan Index is designed to mirror the investable universe of the U.S. dollar-denominated leveraged loan market. The Credit Suisse Western European Leveraged Loan Index is designed to mirror the investable universe of the Western European leveraged loan market, with loans denominated in U.S. and Western European currencies. Indices are unmanaged. It is not possible to invest directly in an index. |
2
Babson Global Floating Rate Fund 2015 Annual Report
n | The Fund remains well-diversified across a number of sectors based on Moodys Industry Classification, with higher concentrations in Healthcare, Education and Childcare (10.4%), Diversified/Conglomerate Service (9.5%), and non-bank related Finance companies (8.2%) as of June 30, 2015. |
n | As of June 30, 2015, the Fund had the following credit quality breakdown excluding cash and accrued income: 19.7% in Ba assets, 65.2% in single-B credits and a small exposure to Caa and below at 3.4%. Approximately 10.8% of the Funds assets are not publicly rated, primarily consisting of European issuers that we believe have a credit quality similar to that of other assets in the portfolio. Baa assets accounted for the remaining 1.0% of the portfolio assets. Over the course of the year, the single-B assets increased as the Funds exposure to Caa and below and not publicly rated assets decreased.2 |
n | The top five countries in the portfolio at the end of the annual reporting period are the U.S. (63.2%), the United Kingdom (18.4%), Germany (7.6%), Canada (2.8%) and Switzerland (1.8%). Overall, the Fund has exposure to 17 different countries, and we continue to focus on building a well-diversified portfolio of global floating rate securities. |
Describe market and portfolio outlook.
n | For the remainder of 2015, monetary policy will be a key theme capturing the attention of financial markets in the coming months as expectations have increased around an eventual interest rate hike by the Federal Reserve in the United States. In Europe, the European Central Banks quantitative easing program will still be monitored as well as any lagging headline risk from the Greece debt crisis. |
n | Further, commodities will be closely watched as the market is looking for signs of stability across the energy and metals and mining sectors. Weak economic data from China has resulted in additional uncertainty surrounding any commodity related credits. |
n | Excluding any potential commodity centric volatility and market instability from a potential Federal Reserve interest rate increase, we believe corporate fundamentals, such as balance sheet leverage and earnings growth, will continue to support global senior secured loan valuations in the near term and will most likely keep default rates below normal. This fundamental picture coupled with relatively attractive yields compared to other fixed income securities, we believe, should remain favorable for the global high yield market and the Fund. |
2. | Ratings shown are the highest rating given by one of the following national rating agencies: S&P or Moodys. Additional information about ratings can be found at www.moodys.com and www.standardandpoors.com. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC/CC/C and D are below investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated Not Publicly Rated are not rated by these national rating agencies. |
3
Babson Global Floating Rate Fund 2015 Annual Report
PORTFOLIO COMPOSITION (% OF ASSETS*)
* | The percentages shown above represent a percentage of the assets as of June 30, 2015. |
COUNTRY COMPOSITION (% OF ASSETS**)
** | Percentage of assets are expressed by market value excluding cash and accrued income, and may vary over time. The percentages shown above represent a percentage of the assets as of June 30, 2015. |
4
Babson Global Credit Income Opportunities Fund 2015 Annual Report
Investment Objective
The investment objective of the Babson Global Credit Income Opportunities Fund (Global Credit Income Opportunities Fund or the Fund) is to seek an absolute return, primarily through current income and secondarily through capital appreciation.
Portfolio Management Commentary
How did the Fund perform?
n | The Fund reported a net total rate of return for the annual reporting period from July 1, 2014 through June 30, 2015, of 0.05% and underperformed the 3 Month USD LIBOR + 500 basis points1 Benchmark, which retuned +5.38%.2 |
What factors influenced performance of the Fund?
n | During the annual reporting period, the main contributors to performance were the Funds allocations to collateralized loan obligations (CLOs), European high yield bonds, and senior secured loans in the U.S. and Europe. European issuers represented five of the top ten contributors to Fund performance for this time period, while three CLO issuers also claimed spots on the top ten contributor list. |
n | U.S. high yield bonds of commodity-related issuers faced significant selling pressure over the past twelve months. The Fund was negatively impacted by its exposure to these credits. Eight of the Funds bottom ten contributors to its performance were commodity-related issuers. In our view, the underlying credit fundamentals for many of these issuers imply a higher value than current trading levels. We feel the selling was indiscriminate at times. While it is difficult to predict the price of commodities, we believe that most of these companies have sufficient liquidity and flexibility in their capital expenditure and operating budgets to withstand the volatility in commodity prices for longer than their current prices would suggest. |
n | The Funds special situation credits had a negative impact on performance during the annual reporting period; however, we believe these assets provide attractive current income to the portfolio and should contribute to the Funds performance in the future. |
Describe recent portfolio activity.
n | The number of holdings in the portfolio has increased moderately over the year as the Fund grew slightly. Despite the increased number of holdings, the Funds positioning across geographies remained fairly consistent and the Fund continues to maintain significant positions in high conviction credits. |
n | Over the course of the year, the Fund slightly trimmed its exposure to global high yield bonds and senior secured loans while increasing its exposure to CLOs in order to focus on what we believe to be a more attractive part of the below investment grade market from a risk-adjusted basis. |
n | Over the past twelve months, the Funds top three industry exposures have remained the same except for slight shifts in positioning with an increase to its CLO position by 3.1%, a decrease in exposure to Oil and Gas companies by approximately 3.3% and an increase to the Healthcare, Education and Childcare sector by 1.3%. |
1. | A basis point is equal to 1/100th of 1% or 0.01%. |
2. | Total return describes the return to an investor based on the Class Y net expense ratio and includes the reinvestment of dividends and capital gains. Performance results reflect past performance and are no guarantee of future results. Current performance may be lower or higher than the performance data quoted. The net asset value (NAV) will fluctuate with market conditions. All returns 1-year or less are cumulative. The 3 Month USD LIBOR (London Interbank Offered Rate) is an average interest rate, determined by the British Bankers Association, that banks charge one another for the use of short-term money (3 months) in Englands Eurodollar market. The return shown includes 3 Month USD LIBOR plus 500 bps, or 5% per annum. LIBOR is unmanaged. It is not possible to invest directly in LIBOR. No assurance can be given that the Funds performance will exceed that of LIBOR by any given increment, or at all. |
5
Babson Global Credit Income Opportunities Fund 2015 Annual Report
n | The Fund in April 2015 sold and purchased a put option on Markits North American High Yield CDX Index to help mitigate downside market risk. While the derivatives are a small portion of the overall Fund, they may be used to hedge the Fund when the manager believes the risk of significant market dislocations makes hedging attractive. 3 |
Describe portfolio positioning at period end.
n | The Fund finished the annual reporting period, June 30, 2015, with an allocation of 46.5%, 28.3%, and 16.5% to global high yield bonds, global senior secured loans and CLOs, respectively. The remainder of the portfolio was invested in a few opportunistic special situation credits at 0.7%, derivatives at 0.3% and cash at 7.7%. A significant portion of the portfolio (50.2%) is senior secured in nature, which may mitigate principal loss in the event of a default. |
n | The Fund remains well-diversified across a number of sectors based on Moodys Industry Classification, with higher concentrations in CLOs (16.5%), Oil and Gas (7.8%), and Healthcare, Education and Childcare (7.3%) as of June 30, 2015. |
n | As of June 30, 2015, the Fund had the following credit quality breakdown excluding cash and accrued income: 31.3% in Ba assets, 51.7% in single-B credits and a modest exposure to Caa and below at 11.4%. Approximately 5.1% of the Funds assets are not publicly rated, primarily consisting of European issuers that we believe have a credit quality similar to that of other assets in the portfolio. Baa and above assets accounted for the remaining 0.5% of the portfolio assets. Over the course of the year, the single-B assets increased as the Funds exposure to assets rated Caa and below and not publicly rated assets decreased.4 |
n | The top five countries in the portfolio at the end of the annual reporting period are the U.S. (49.2%), the Cayman Islands (17.3%), the United Kingdom (13.8%), Germany (3.4%) and the Netherlands (3.1%). The Cayman Islands exposure related to the Funds CLO holdings is predominantly invested in U.S. senior secured loans. Overall, the Fund has exposure to 19 different countries, and we continue to focus on building a well-diversified portfolio of global high yield securities. |
Describe market and portfolio outlook.
n | For the remainder of 2015, monetary policy will be a key theme capturing the attention of financial markets in the coming months as expectations have increased around an eventual interest rate hike by the Federal Reserve in the United States. In Europe, the European Central Banks quantitative easing program will still be monitored as well as any lagging headline risk from the Greece debt crisis. |
n | Further, commodities will be closely watched as the market is looking for signs of stability across the energy and metals and mining sectors. Weak economic data from China has resulted in additional uncertainty surrounding any commodity related credits. |
n | Excluding any potential commodity centric volatility and market instability from a potential Federal Reserve interest rate increase, we believe corporate fundamentals, such as balance sheet leverage and earnings growth, will continue to support global senior secured loan and high yield bond valuations in the near term and will most likely keep default rates below normal. This fundamental picture coupled with relatively attractive yields compared to other fixed income securities, we believe, should remain favorable for the global high yield market and the Fund. |
3. | Markits North American High Yield CDX Index is composed of 100 liquid North American entities with high yield credit ratings that trade in the credit default swap market. It is not possible to invest directly in an index. A put option gives the owner the right to sell a security at a specific price and date. |
4. | Ratings shown are the highest rating given by one of the following national rating agencies: S&P or Moodys. Additional information about ratings can be found at www.moodys.com and www.standardandpoors.com. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC/CC/C and D are below investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated Not Publicly Rated are not rated by these national rating agencies |
6
Babson Global Credit Income Opportunities Fund 2015 Annual Report
PORTFOLIO COMPOSITION (% OF ASSETS*)
* | The percentages shown above represent a percentage of the assets as of June 30, 2015. |
COUNTRY COMPOSITION (% OF ASSETS**)
** | Percentage of assets are expressed by market value excluding cash and accrued income, and may vary over time. The percentages shown above represent a percentage of the assets as of June 30, 2015. |
7
Babson Capital Funds Trust 2015 Annual Report
SHAREHOLDER EXPENSES (UNAUDITED)
As a shareholder of Babson Global Floating Rate Fund or Babson Global Credit Income Opportunities Fund, you incur ongoing expenses, such as management fees, shareholder service fees, distribution fees and other fund expenses. The following table is intended to help you understand your ongoing expenses (in dollars and cents) of investing in the Funds and to compare these expenses with the ongoing expenses of investing in other funds.
The table is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2015 to June 30, 2015.
Actual Expenses
The first line in the table below provides information about the actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for the Fund under the heading entitled Operating Expenses Incurred to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table below provides information about the hypothetical account values and hypothetical expenses based on the Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return. The hypothetical account value and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Babson Global Floating Rate Fund
EXPENSE RATIO |
BEGINNING AMOUNT |
ENDING VALUE |
AVERAGE VALUE |
OPERATING EXPENSE INCURRED* |
||||||||||||||||
Class A |
||||||||||||||||||||
Actual |
1.05 | % | $ | 1,000.00 | $ | 1,028.00 | $ | 1,014.00 | $ | 5.28 | ||||||||||
Hypothetical |
1.05 | % | 1,000.00 | 1,019.60 | 1,009.80 | 5.26 | ||||||||||||||
Class C |
||||||||||||||||||||
Actual |
1.80 | % | 1,000.00 | 1,025.30 | 1,012.65 | 9.04 | ||||||||||||||
Hypothetical |
1.80 | % | 1,000.00 | 1,015.90 | 1,007.95 | 9.00 | ||||||||||||||
Class I |
||||||||||||||||||||
Actual |
0.75 | % | 1,000.00 | 1,030.60 | 1,015.30 | 3.78 | ||||||||||||||
Hypothetical |
0.75 | % | 1,000.00 | 1,021.10 | 1,010.55 | 3.76 | ||||||||||||||
Class Y |
||||||||||||||||||||
Actual |
0.75 | % | 1,000.00 | 1,030.00 | 1,015.00 | 3.77 | ||||||||||||||
Hypothetical |
0.75 | % | 1,000.00 | 1,021.10 | 1,010.55 | 3.76 |
* | For each Class of the Fund, net expenses are equal to the annualized expense ratio net of any expenses waived or reimbursed by the advisor for such class multiplied by the average account value over the period, multiplied by 181/365. |
8
Babson Capital Funds Trust 2015 Annual Report
SHAREHOLDER EXPENSES (UNAUDITED) (CONTINUED)
Babson Global Credit Income Opportunities Fund
EXPENSE RATIO |
BEGINNING AMOUNT |
ENDING VALUE |
AVERAGE VALUE |
OPERATING EXPENSE INCURRED* |
||||||||||||||||
Class A |
||||||||||||||||||||
Actual |
1.20 | % | $ | 1,000.00 | $ | 1,039.90 | $ | 1,019.95 | $ | 6.07 | ||||||||||
Hypothetical |
1.20 | % | 1,000.00 | 1,018.80 | 1,009.40 | 6.01 | ||||||||||||||
Class C |
||||||||||||||||||||
Actual |
1.95 | % | 1,000.00 | 1,036.10 | 1,018.05 | 9.84 | ||||||||||||||
Hypothetical |
1.95 | % | 1,000.00 | 1,015.10 | 1,007.55 | 9.74 | ||||||||||||||
Class I |
||||||||||||||||||||
Actual |
0.95 | % | 1,000.00 | 1,041.20 | 1,020.60 | 4.81 | ||||||||||||||
Hypothetical |
0.95 | % | 1,000.00 | 1,020.10 | 1,010.05 | 4.76 | ||||||||||||||
Class Y |
||||||||||||||||||||
Actual |
0.95 | % | 1,000.00 | 1,041.20 | 1,020.60 | 4.81 | ||||||||||||||
Hypothetical |
0.95 | % | 1,000.00 | 1,020.10 | 1,010.05 | 4.76 |
* | For each Class of the Fund, net expenses are equal to the annualized expense ratio net of any expenses waived or reimbursed by the advisor for such class multiplied by the average account value over the period, multiplied by 181/365. |
9
Babson Capital Funds Trust 2015 Annual Report
10
Babson Capital Funds Trust 2015 Annual Report
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2015
BABSON GLOBAL FLOATING RATE FUND |
BABSON GLOBAL CREDIT INCOME OPPORTUNITIES FUND |
|||||||
Assets | ||||||||
Investments, at fair value (cost $183,779,073 and $87,211,696, respectively) | $ | 178,945,642 | $ | 83,439,026 | ||||
Foreign currency, at value (cost $187,148 and $828,874, respectively) | 188,172 | 827,846 | ||||||
Receivable for investments sold | 7,522,395 | 1,321,634 | ||||||
Receivable for Fund shares sold | 439,981 | 548,379 | ||||||
Interest receivable | 1,060,641 | 1,077,097 | ||||||
Receivable from adviser (see Note 3) | | 10,439 | ||||||
Foreign tax reclaims receivable | | 499 | ||||||
Unrealized appreciation on forward foreign currency exchange contracts | 153,124 | 98,939 | ||||||
Prepaid expenses | 14,479 | 14,362 | ||||||
|
|
|
|
|||||
Total assets |
188,324,434 | 87,338,221 | ||||||
|
|
|
|
|||||
Liabilities | ||||||||
Payable for investments purchased | 21,215,008 | 4,798,806 | ||||||
Payable for Fund shares repurchased | 188,148 | 59,294 | ||||||
Investment advisory fee payable (see Note 3) | 6,682 | | ||||||
Directors fees payable | 25,191 | 22,457 | ||||||
Distribution fees payable | 4,510 | 4,953 | ||||||
Dividends payable | 30,800 | 8,138 | ||||||
Written options, at fair value (premiums of $382,000) | | 319,477 | ||||||
Unrealized depreciation on forward foreign currency exchange contracts | 523,194 | 242,571 | ||||||
Unrealized depreciation on unfunded loan commitments | 4,592 | 4,592 | ||||||
Accrued expenses and other liabilities | 167,172 | 145,304 | ||||||
|
|
|
|
|||||
Total liabilities |
22,165,297 | 5,605,592 | ||||||
|
|
|
|
|||||
Total net assets |
$ | 166,159,137 | $ | 81,732,629 | ||||
|
|
|
|
|||||
Composition of net assets | ||||||||
Shares of beneficial interest outstanding (par value $0.00001 per share), unlimited number of shares authorized | $ | 173 | $ | 86 | ||||
Additional paid-in capital | 172,113,692 | 86,777,920 | ||||||
Undistributed net investment income | 385,459 | 832,841 | ||||||
Accumulated net realized loss | (1,236,004 | ) | (2,089,794 | ) | ||||
Net unrealized depreciation | (5,104,183 | ) | (3,788,424 | ) | ||||
|
|
|
|
|||||
Total net assets |
$ | 166,159,137 | $ | 81,732,629 | ||||
|
|
|
|
See accompanying Notes to Financial Statements.
11
Babson Capital Funds Trust 2015 Annual Report
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
June 30, 2015
BABSON GLOBAL FLOATING RATE FUND |
BABSON GLOBAL CREDIT INCOME OPPORTUNITIES FUND |
|||||||
Class A | ||||||||
Net assets applicable to outstanding shares | $ | 5,153,390 | $ | 12,718,453 | ||||
|
|
|
|
|||||
Shares of beneficial interest outstanding | 536,621 | 1,337,125 | ||||||
|
|
|
|
|||||
Net asset value per share outstanding | $ | 9.60 | $ | 9.51 | ||||
|
|
|
|
|||||
Maximum offering price per share outstanding (Net asset value plus sales charge of 3.00% and 3.75%, respectively) | $ | 9.90 | $ | 9.88 | ||||
|
|
|
|
|||||
Class C | ||||||||
Net assets applicable to outstanding shares | $ | 5,461,107 | $ | 3,579,214 | ||||
|
|
|
|
|||||
Shares of beneficial interest outstanding | 570,658 | 376,719 | ||||||
|
|
|
|
|||||
Net asset value per share outstanding | $ | 9.57 | $ | 9.50 | ||||
|
|
|
|
|||||
Class I | ||||||||
Net assets applicable to outstanding shares | $ | 25,885,261 | $ | 26,428,486 | ||||
|
|
|
|
|||||
Shares of beneficial interest outstanding | 2,690,564 | 2,778,924 | ||||||
|
|
|
|
|||||
Net asset value per share outstanding | $ | 9.62 | $ | 9.51 | ||||
|
|
|
|
|||||
Class Y | ||||||||
Net assets applicable to outstanding shares | $ | 129,659,379 | $ | 39,006,476 | ||||
|
|
|
|
|||||
Shares of beneficial interest outstanding | 13,480,746 | 4,101,804 | ||||||
|
|
|
|
|||||
Net asset value per share outstanding | $ | 9.62 | $ | 9.51 | ||||
|
|
|
|
See accompanying Notes to Financial Statements.
12
Babson Capital Funds Trust 2015 Annual Report
For the Year Ended June 30, 2015
BABSON GLOBAL FLOATING RATE FUND |
BABSON GLOBAL CREDIT INCOME OPPORTUNITIES FUND |
|||||||
Investment Income | ||||||||
Interest income |
$ | 6,512,192 | $ | 5,117,388 | ||||
Other income |
4,314 | 1,892 | ||||||
|
|
|
|
|||||
Total investment income |
6,516,506 | 5,119,280 | ||||||
|
|
|
|
|||||
Operating Expenses | ||||||||
Advisory fees |
788,308 | 578,488 | ||||||
12b-1 distribution and servicing plan |
||||||||
Class A |
26,347 | 35,043 | ||||||
Class C |
32,479 | 18,556 | ||||||
Administrator fees |
167,393 | 114,506 | ||||||
Custody fees |
141,692 | 100,173 | ||||||
Professional fees |
134,906 | 134,906 | ||||||
Transfer agent fees |
126,095 | 132,698 | ||||||
Directors fees |
104,974 | 89,727 | ||||||
Registration fees |
62,198 | 62,773 | ||||||
Printing and mailing expenses |
28,787 | 28,787 | ||||||
Other operating expenses |
30,462 | 25,347 | ||||||
|
|
|
|
|||||
Total operating expenses |
1,643,641 | 1,321,004 | ||||||
Reimbursement of expenses |
||||||||
Class A |
(72,972 | ) | (109,328 | ) | ||||
Class C |
(42,980 | ) | (39,700 | ) | ||||
Class I |
(172,893 | ) | (163,439 | ) | ||||
Class Y |
(379,508 | ) | (222,205 | ) | ||||
|
|
|
|
|||||
Net operating expenses |
975,288 | 786,332 | ||||||
|
|
|
|
|||||
Net investment income |
5,541,218 | 4,332,948 | ||||||
|
|
|
|
|||||
Realized and Unrealized Gains (Losses) on Investments | ||||||||
Net realized loss on investments |
(3,012,607 | ) | (3,177,577 | ) | ||||
Net realized gain on forward foreign currency exchange contracts |
5,210,733 | 3,726,491 | ||||||
Net realized loss on foreign currency and translation |
(639,717 | ) | (96,926 | ) | ||||
|
|
|
|
|||||
Net realized gain |
1,558,409 | 451,988 | ||||||
|
|
|
|
|||||
Net change in unrealized depreciation on investments |
(5,833,597 | ) | (5,178,072 | ) | ||||
Net change in unrealized depreciation on unfunded loan commitments |
(4,592 | ) | (4,592 | ) | ||||
Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts |
(35,901 | ) | 72,833 | |||||
Net change in unrealized appreciation on foreign currency and translation |
53,872 | 76,427 | ||||||
Net change in unrealized appreciation on written option contracts |
| 62,523 | ||||||
|
|
|
|
|||||
Net change in unrealized depreciation |
(5,820,218 | ) | (4,970,881 | ) | ||||
|
|
|
|
|||||
Net realized and unrealized losses on investments |
(4,261,809 | ) | (4,518,893 | ) | ||||
|
|
|
|
|||||
Net increase (decrease) in net assets resulting from operations |
$ | 1,279,409 | $ | (185,945 | ) | |||
|
|
|
|
See accompanying Notes to Financial Statements.
13
Babson Capital Funds Trust 2015 Annual Report
STATEMENTS OF CHANGES IN NET ASSETS
BABSON GLOBAL FLOATING RATE FUND |
BABSON GLOBAL CREDIT INCOME OPPORTUNITIES FUND |
|||||||||||||||
FOR THE YEAR ENDED JUNE 30, 2015 |
PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (1) |
FOR THE YEAR ENDED JUNE 30, 2015 |
PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (1) |
|||||||||||||
Operations | ||||||||||||||||
Net investment income |
$ | 5,541,218 | $ | 2,203,083 | $ | 4,332,948 | $ | 2,096,689 | ||||||||
Net realized gain (loss) on investments |
1,558,409 | (139,670 | ) | 451,988 | 541,842 | |||||||||||
Net change in unrealized appreciation (depreciation) on investments |
(5,820,218 | ) | 716,035 | (4,970,881 | ) | 1,182,457 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) in net assets from operations |
1,279,409 | 2,779,448 | (185,945 | ) | 3,820,988 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Dividends to Common Shareholders | ||||||||||||||||
Net investment income |
||||||||||||||||
Class A |
(805,770 | ) | (140,982 | ) | (1,114,861 | ) | (36,805 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Class C |
(199,251 | ) | (26,146 | ) | (136,768 | ) | (10,571 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Class I |
(2,251,195 | ) | (610,026 | ) | (2,110,134 | ) | (734,939 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Class Y |
(4,937,396 | ) | (1,014,718 | ) | (2,778,042 | ) | (790,102 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized gain |
||||||||||||||||
Class A |
(11,345 | ) | | (186,020 | ) | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Class C |
(2,779 | ) | | (25,871 | ) | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Class I |
(27,574 | ) | | (340,131 | ) | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Class Y |
(49,009 | ) | | (416,997 | ) | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total dividends to common shareholders |
(8,284,319 | ) | (1,791,872 | ) | (7,108,824 | ) | (1,572,417 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Capital Share Transactions | ||||||||||||||||
Net proceeds from sale of shares |
103,090,790 | 114,172,093 | 42,681,717 | 60,160,874 | ||||||||||||
Net Asset Value of shares issued to shareholders in payment of distributions declared |
8,079,411 | 1,770,684 | 6,926,691 | 1,559,384 | ||||||||||||
Cost of shares redeemed |
(52,643,055 | ) | (2,298,911 | ) | (24,420,068 | ) | (143,371 | ) | ||||||||
Redemption fees |
5,459 | | 13,600 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase in net assets resulting from capital stock transactions |
58,532,605 | 113,643,866 | 25,201,940 | 61,576,887 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total increase in net assets |
51,527,695 | 114,631,442 | 17,907,171 | 63,825,458 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets | ||||||||||||||||
Beginning of year |
114,631,442 | | 63,825,458 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
End of year (includes undistributed net investment income of $385,459, $334,169, $832,841 and $216,465, respectively) |
$ | 166,159,137 | $ | 114,631,442 | $ | 81,732,629 | $ | 63,825,458 | ||||||||
|
|
|
|
|
|
|
|
(1) | Fund commenced operations on September 16, 2013. |
See accompanying Notes to Financial Statements.
14
Babson Global Floating Rate Fund 2015 Annual Report
CLASS A | ||||||||
FOR THE YEAR ENDED JUNE 30, 2015 |
PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (1) |
|||||||
Per Common Share Data | ||||||||
Net asset value, beginning of year |
$ | 10.20 | $ | 10.00 | ||||
Income from investment operations: |
||||||||
Net investment income (2) |
0.44 | 0.30 | ||||||
Net realized and unrealized gain (loss) on investments |
(0.35 | ) | 0.08 | |||||
|
|
|
|
|||||
Total increase from investment operations |
0.09 | 0.38 | ||||||
|
|
|
|
|||||
Less dividends and distributions: |
||||||||
From net investment income |
(0.68 | ) | (0.18 | ) | ||||
From net realized gain |
(0.01 | ) | | |||||
|
|
|
|
|||||
Total dividends and distributions |
(0.69 | ) | (0.18 | ) | ||||
|
|
|
|
|||||
Redemption fees |
0.00 | (3) | | |||||
|
|
|
|
|||||
Net asset value, at end of year |
$ | 9.60 | $ | 10.20 | ||||
|
|
|
|
|||||
Total investment return (4) |
0.95 | % | 3.81 | %(5) | ||||
|
|
|
|
|||||
Supplemental Data and Ratios | ||||||||
Net assets, end of year (000s) |
$ | 5,153 | $ | 12,464 | ||||
Ratio of total expenses (before reductions and reimbursements) to average net assets (6) |
1.74 | % | 2.27 | %(7) | ||||
Ratio of net expenses to average net assets |
1.05 | % | 1.05 | %(7) | ||||
Ratio of net investment income to average net assets |
4.44 | % | 3.76 | %(7) | ||||
Portfolio turnover rate |
63.17 | % | 49.51 | %(5) |
(1) | Fund commenced operations on September 16, 2013. |
(2) | Calculated using average shares outstanding. |
(3) | Amount rounds to less than $.01 per share. |
(4) | Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the Funds dividend reinvestment plan. |
(5) | Not annualized. |
(6) | The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 1.05% as a percentage of average daily net assets. |
(7) | Annualized for periods less than one full year. |
See accompanying Notes to Financial Statements.
15
Babson Global Floating Rate Fund 2015 Annual Report
FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS C | ||||||||
FOR THE YEAR ENDED JUNE 30, 2015 |
PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (1) |
|||||||
Per Common Share Data | ||||||||
Net asset value, beginning of year |
$ | 10.16 | $ | 10.00 | ||||
Income from investment operations: |
||||||||
Net investment income (2) |
0.35 | 0.24 | ||||||
Net realized and unrealized gain (loss) on investments |
(0.33 | ) | 0.07 | |||||
|
|
|
|
|||||
Total increase from investment operations |
0.02 | 0.31 | ||||||
|
|
|
|
|||||
Less dividends and distributions: |
||||||||
From net investment income |
(0.60 | ) | (0.15 | ) | ||||
From net realized gain |
(0.01 | ) | | |||||
|
|
|
|
|||||
Total dividends and distributions |
(0.61 | ) | (0.15 | ) | ||||
|
|
|
|
|||||
Redemption fees |
0.00 | (3) | | |||||
|
|
|
|
|||||
Net asset value, at end of year |
$ | 9.57 | $ | 10.16 | ||||
|
|
|
|
|||||
Total investment return (4) |
0.30 | % | 3.15 | %(5) | ||||
|
|
|
|
|||||
Supplemental Data and Ratios | ||||||||
Net assets, end of year (000s) |
$ | 5,461 | $ | 2,396 | ||||
Ratio of total expenses (before reductions and reimbursements) to average net assets (6) |
3.12 | % | 4.97 | %(7) | ||||
Ratio of net expenses to average net assets |
1.80 | % | 1.80 | %(7) | ||||
Ratio of net investment income to average net assets |
3.60 | % | 3.07 | %(7) | ||||
Portfolio turnover rate |
63.17 | % | 49.51 | %(5) |
(1) | Fund commenced operations on September 16, 2013. |
(2) | Calculated using average shares outstanding. |
(3) | Amount rounds to less than $.01 per share. |
(4) | Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the Funds dividend reinvestment plan. |
(5) | Not annualized. |
(6) | The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 1.80% as a percentage of average daily net assets. |
(7) | Annualized for periods less than one full year. |
See accompanying Notes to Financial Statements.
16
Babson Global Floating Rate Fund 2015 Annual Report
FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS I | ||||||||
FOR THE YEAR ENDED JUNE 30, 2015 |
PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (1) |
|||||||
Per Common Share Data | ||||||||
Net asset value, beginning of year |
$ | 10.21 | $ | 10.00 | ||||
Income from investment operations: |
||||||||
Net investment income (2) |
0.46 | 0.30 | ||||||
Net realized and unrealized gain (loss) on investments |
(0.34 | ) | 0.10 | |||||
|
|
|
|
|||||
Total increase from investment operations |
0.12 | 0.40 | ||||||
|
|
|
|
|||||
Less dividends and distributions: |
||||||||
From net investment income |
(0.70 | ) | (0.19 | ) | ||||
From net realized gain |
(0.01 | ) | | |||||
|
|
|
|
|||||
Total dividends and distributions |
(0.71 | ) | (0.19 | ) | ||||
|
|
|
|
|||||
Redemption fees |
0.00 | (3) | | |||||
|
|
|
|
|||||
Net asset value, at end of year |
$ | 9.62 | $ | 10.21 | ||||
|
|
|
|
|||||
Total investment return (4) |
1.34 | % | 4.04 | %(5) | ||||
|
|
|
|
|||||
Supplemental Data and Ratios | ||||||||
Net assets, end of year (000s) |
$ | 25,885 | $ | 32,772 | ||||
Ratio of total expenses (before reductions and reimbursements) to average net assets (6) |
1.31 | % | 1.52 | %(7) | ||||
Ratio of net expenses to average net assets |
0.75 | % | 0.75 | %(7) | ||||
Ratio of net investment income to average net assets |
4.69 | % | 3.72 | %(7) | ||||
Portfolio turnover rate |
63.17 | % | 49.51 | %(5) |
(1) | Fund commenced operations on September 16, 2013. |
(2) | Calculated using average shares outstanding. |
(3) | Amount rounds to less than $.01 per share. |
(4) | Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Funds dividend reinvestment plan. |
(5) | Not annualized. |
(6) | The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed .75% as a percentage of average daily net assets. |
(7) | Annualized for periods less than one full year. |
See accompanying Notes to Financial Statements.
17
Babson Global Floating Rate Fund 2015 Annual Report
FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS Y | ||||||||
FOR THE YEAR ENDED JUNE 30, 2015 |
PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (1) |
|||||||
Per Common Share Data | ||||||||
Net asset value, beginning of year |
$ | 10.21 | $ | 10.00 | ||||
Income from investment operations: |
||||||||
Net investment income (2) |
0.45 | 0.30 | ||||||
Net realized and unrealized gain (loss) on investments |
(0.33 | ) | 0.10 | |||||
|
|
|
|
|||||
Total increase from investment operations |
0.12 | 0.40 | ||||||
|
|
|
|
|||||
Less dividends and distributions: |
||||||||
From net investment income |
(0.70 | ) | (0.19 | ) | ||||
From net realized gain |
(0.01 | ) | | |||||
|
|
|
|
|||||
Total dividends and distributions |
(0.71 | ) | (0.19 | ) | ||||
|
|
|
|
|||||
Redemption fees |
0.00 | (3) | | |||||
|
|
|
|
|||||
Net asset value, at end of year |
$ | 9.62 | $ | 10.21 | ||||
|
|
|
|
|||||
Total investment return (4) |
1.28 | % | 4.04 | %(5) | ||||
|
|
|
|
|||||
Supplemental Data and Ratios | ||||||||
Net assets, end of year (000s) |
$ | 129,659 | $ | 66,999 | ||||
Ratio of total expenses (before reductions and reimbursements) to average net assets (6) |
1.25 | % | 1.53 | %(7) | ||||
Ratio of net expenses to average net assets |
0.75 | % | 0.75 | %(7) | ||||
Ratio of net investment income to average net assets |
4.58 | % | 3.80 | %(7) | ||||
Portfolio turnover rate |
63.17 | % | 49.51 | %(5) |
(1) | Fund commenced operations on September 16, 2013. |
(2) | Calculated using average shares outstanding. |
(3) | Amount rounds to less than $.01 per share. |
(4) | Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Funds dividend reinvestment plan. |
(5) | Not annualized. |
(6) | The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed .75% as a percentage of average daily net assets. |
(7) | Annualized for periods less than one full year. |
See accompanying Notes to Financial Statements.
18
Babson Global Credit Income Opportunities Fund 2015 Annual Report
FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS A | ||||||||
FOR THE YEAR ENDED JUNE 30, 2015 |
PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (1) |
|||||||
Per Common Share Data | ||||||||
Net asset value, beginning of year |
$ | 10.45 | $ | 10.00 | ||||
Income from investment operations: |
||||||||
Net investment income (2) |
0.54 | 0.40 | ||||||
Net realized and unrealized gain (loss) on investments |
(0.57 | ) | 0.33 | |||||
|
|
|
|
|||||
Total increase (decrease) from investment operations |
(0.03 | ) | 0.73 | |||||
|
|
|
|
|||||
Less dividends and distributions: |
||||||||
From net investment income |
(0.78 | ) | (0.28 | ) | ||||
From net realized gain |
(0.13 | ) | | |||||
|
|
|
|
|||||
Total dividends and distributions |
(0.91 | ) | (0.28 | ) | ||||
|
|
|
|
|||||
Redemption fees |
0.00 | (3) | | |||||
|
|
|
|
|||||
Net asset value, at end of year |
$ | 9.51 | $ | 10.45 | ||||
|
|
|
|
|||||
Total investment return (4) |
(0.11 | )% | 7.30 | %(5) | ||||
|
|
|
|
|||||
Supplemental Data and Ratios | ||||||||
Net assets, end of year (000s) |
$ | 12,718 | $ | 2,591 | ||||
Ratio of total expenses (before reductions and reimbursements) to average net assets (6) |
1.98 | % | 3.95 | %(7) | ||||
Ratio of net expenses to average net assets |
1.20 | % | 1.20 | %(7) | ||||
Ratio of net investment income to average net assets |
5.46 | % | 4.88 | %(7) | ||||
Portfolio turnover rate |
84.65 | % | 99.72 | %(5) |
(1) | Fund commenced operations on September 16, 2013. |
(2) | Calculated using average shares outstanding. |
(3) | Amount rounds to less than $.01 per share. |
(4) | Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the Funds dividend reinvestment plan. |
(5) | Not annualized. |
(6) | The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 1.20% as a percentage of average daily net assets. |
(7) | Annualized for periods less than one full year. |
See accompanying Notes to Financial Statements.
19
Babson Global Credit Income Opportunities Fund 2015 Annual Report
FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS C | ||||||||
FOR THE YEAR ENDED JUNE 30, 2015 |
PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (1) |
|||||||
Per Common Share Data | ||||||||
Net asset value, beginning of year |
$ | 10.45 | $ | 10.00 | ||||
Income from investment operations: |
||||||||
Net investment income (2) |
0.47 | 0.35 | ||||||
Net realized and unrealized gain (loss) on investments |
(0.58 | ) | 0.32 | |||||
|
|
|
|
|||||
Total increase (decrease) from investment operations |
(0.11 | ) | 0.67 | |||||
|
|
|
|
|||||
Less dividends and distributions: |
||||||||
From net investment income |
(0.71 | ) | (0.22 | ) | ||||
From net realized gain |
(0.13 | ) | | |||||
|
|
|
|
|||||
Total dividends and distributions |
(0.84 | ) | (0.22 | ) | ||||
|
|
|
|
|||||
Redemption fees |
0.00 | (3) | | |||||
|
|
|
|
|||||
Net asset value, at end of year |
$ | 9.50 | $ | 10.45 | ||||
|
|
|
|
|||||
Total investment return (4) |
(0.93 | )% | 6.75 | %(5) | ||||
|
|
|
|
|||||
Supplemental Data and Ratios | ||||||||
Net assets, end of year (000s) |
$ | 3,579 | $ | 944 | ||||
Ratio of total expenses (before reductions and reimbursements) to average net assets (6) |
4.09 | % | 10.50 | %(7) | ||||
Ratio of net expenses to average net assets |
1.95 | % | 1.95 | %(7) | ||||
Ratio of net investment income to average net assets |
4.79 | % | 4.39 | %(7) | ||||
Portfolio turnover rate |
84.65 | % | 99.72 | %(5) |
(1) | Fund commenced operations on September 16, 2013. |
(2) | Calculated using average shares outstanding. |
(3) | Amount rounds to less than $.01 per share. |
(4) | Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the Funds dividend reinvestment plan. |
(5) | Not annualized. |
(6) | The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 1.95% as a percentage of average daily net assets. |
(7) | Annualized for periods less than one full year. |
See accompanying Notes to Financial Statements.
20
Babson Global Credit Income Opportunities Fund 2015 Annual Report
FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS I | ||||||||
FOR THE YEAR ENDED JUNE 30, 2015 |
PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (1) |
|||||||
Per Common Share Data | ||||||||
Net asset value, beginning of year |
$ | 10.46 | $ | 10.00 | ||||
Income from investment operations: |
||||||||
Net investment income (2) |
0.56 | 0.41 | ||||||
Net realized and unrealized gain (loss) on investments |
(0.58 | ) | 0.35 | |||||
|
|
|
|
|||||
Total increase (decrease) from investment operations |
(0.02 | ) | 0.76 | |||||
|
|
|
|
|||||
Less dividends and distributions: |
||||||||
From net investment income |
(0.80 | ) | (0.30 | ) | ||||
From net realized gain |
(0.13 | ) | | |||||
|
|
|
|
|||||
Total dividends and distributions |
(0.93 | ) | (0.30 | ) | ||||
|
|
|
|
|||||
Redemption fees |
0.00 | (3) | | |||||
|
|
|
|
|||||
Net asset value, at end of year |
$ | 9.51 | $ | 10.46 | ||||
|
|
|
|
|||||
Total investment return (4) |
0.05 | % | 7.59 | %(5) | ||||
|
|
|
|
|||||
Supplemental Data and Ratios | ||||||||
Net assets, end of year (000s) |
$ | 26,428 | $ | 26,406 | ||||
Ratio of total expenses (before reductions and reimbursements) to average net assets (6) |
1.58 | % | 1.83 | %(7) | ||||
Ratio of net expenses to average net assets |
0.95 | % | 0.95 | %(7) | ||||
Ratio of net investment income to average net assets |
5.69 | % | 5.02 | %(7) | ||||
Portfolio turnover rate |
84.65 | % | 99.72 | %(5) |
(1) | Fund commenced operations on September 16, 2013. |
(2) | Calculated using average shares outstanding. |
(3) | Amount rounds to less than $.01 per share. |
(4) | Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Funds dividend reinvestment plan. |
(5) | Not annualized. |
(6) | The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed .95% as a percentage of average daily net assets. |
(7) | Annualized for periods less than one full year. |
See accompanying Notes to Financial Statements.
21
Babson Global Credit Income Opportunities Fund 2015 Annual Report
FINANCIAL HIGHLIGHTS (CONTINUED)
CLASS Y | ||||||||
FOR THE YEAR ENDED JUNE 30, 2015 |
PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (1) |
|||||||
Per Common Share Data | ||||||||
Net asset value, beginning of year |
$ | 10.46 | $ | 10.00 | ||||
Income from investment operations: |
||||||||
Net investment income (2) |
0.56 | 0.41 | ||||||
Net realized and unrealized gain (loss) on investments |
(0.58 | ) | 0.35 | |||||
|
|
|
|
|||||
Total increase (decrease) from investment operations |
(0.02 | ) | 0.76 | |||||
|
|
|
|
|||||
Less dividends and distributions: |
||||||||
From net investment income |
(0.80 | ) | (0.30 | ) | ||||
From net realized gain |
(0.13 | ) | | |||||
|
|
|
|
|||||
Total dividends and distributions |
(0.93 | ) | (0.30 | ) | ||||
|
|
|
|
|||||
Redemption fees |
0.00 | (3) | | |||||
|
|
|
|
|||||
Net asset value, at end of year |
$ | 9.51 | $ | 10.46 | ||||
|
|
|
|
|||||
Total investment return (4) |
0.05 | % | 7.59 | %(5) | ||||
|
|
|
|
|||||
Supplemental Data and Ratios | ||||||||
Net assets, end of year (000s) |
$ | 39,006 | $ | 33,885 | ||||
Ratio of total expenses (before reductions and reimbursements) to average net assets (6) |
1.58 | % | 1.84 | %(7) | ||||
Ratio of net expenses to average net assets |
0.95 | % | 0.95 | %(7) | ||||
Ratio of net investment income to average net assets |
5.67 | % | 5.04 | %(7) | ||||
Portfolio turnover rate |
84.65 | % | 99.72 | %(5) |
(1) | Fund commenced operations on September 16, 2013. |
(2) | Calculated using average shares outstanding. |
(3) | Amount rounds to less than $.01 per share. |
(4) | Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Funds dividend reinvestment plan. |
(5) | Not annualized. |
(6) | The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed .95% as a percentage of average daily net assets. |
(7) | Annualized for periods less than one full year. |
See accompanying Notes to Financial Statements.
22
Babson Global Floating Rate Fund 2015 Annual Report
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Fixed Income 93.6%*: |
| |||||||||||||||||||
Bank Loans 79.9%*§: |
| |||||||||||||||||||
Automobile 2.3%*: |
| |||||||||||||||||||
Gates Global, Inc. |
4.25 | % | 7/5/2021 | 1,493,731 | $1,488,312 | $1,469,458 | ||||||||||||||
RAC Finance (Holdings) Ltd.+ |
5.03 | 12/17/2021 | 995,000 | 1,487,022 | 1,561,439 | |||||||||||||||
RAC Finance (Holdings) Ltd.+ |
8.25 | 12/17/2022 | 500,000 | 791,316 | 790,048 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Automobile |
|
2,988,731 | 3,766,650 | 3,820,945 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Beverage, Food and Tobacco 1.7%*: |
| |||||||||||||||||||
1011778 B.C. Unlimited Liability Co.+ |
3.75 | 12/10/2021 | 956,012 | 953,644 | 954,683 | |||||||||||||||
Acosta Holdco, Inc. |
4.25 | 9/26/2021 | 406,859 | 406,859 | 405,207 | |||||||||||||||
Del Monte Foods, Inc. |
4.25 | 2/18/2021 | 246,875 | 245,879 | 234,944 | |||||||||||||||
Deoleo SA+ |
4.50 | 6/11/2021 | 500,000 | 676,961 | 541,098 | |||||||||||||||
JBS USA Holdings, Inc. |
3.75 | 9/18/2020 | 491,250 | 492,191 | 489,614 | |||||||||||||||
Telepizza SA+ |
7.00 | 10/20/2020 | 250,000 | 315,291 | 277,609 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Beverage, Food and Tobacco |
|
2,850,996 | 3,090,825 | 2,903,155 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Broadcasting and Entertainment 4.8%*: |
| |||||||||||||||||||
All3Media International+ |
5.25 | 6/30/2021 | 1,500,000 | 2,301,024 | 2,337,525 | |||||||||||||||
All3Media International+ |
8.25 | 6/30/2022 | 500,000 | 671,306 | 548,133 | |||||||||||||||
Charter Communications Operating LLC |
3.00 | 1/3/2021 | 492,462 | 491,478 | 485,957 | |||||||||||||||
Cumulus Media Holdings, Inc. |
4.25 | 12/23/2020 | 1,352,647 | 1,338,028 | 1,283,324 | |||||||||||||||
Learfield Communications, Inc. |
4.50 | 10/9/2020 | 413,325 | 412,906 | 412,808 | |||||||||||||||
Telecommunications Management LLC |
4.75 | 4/30/2020 | 13,378 | 13,377 | 13,311 | |||||||||||||||
Univision Communications, Inc. |
4.00 | 3/1/2020 | 1,496,060 | 1,496,059 | 1,482,700 | |||||||||||||||
Yankee Cable Acquisition LLC |
4.25 | 3/1/2020 | 1,486,294 | 1,493,736 | 1,486,294 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Broadcasting and Entertainment |
|
7,254,166 | 8,217,914 | 8,050,052 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Buildings and Real Estate 0.7%*: |
| |||||||||||||||||||
Alison Bidco Sarl+ |
5.50 | 8/29/2021 | 295,028 | 292,418 | 285,440 | |||||||||||||||
DTZ US Borrower LLC |
5.50 | 11/4/2021 | 315,331 | 310,910 | 316,318 | |||||||||||||||
Jeld-Wen, Inc. |
5.25 | 10/15/2021 | 507,482 | 502,905 | 508,436 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Buildings and Real Estate |
|
1,117,841 | 1,106,233 | 1,110,194 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Cargo Transport 0.6%*: |
| |||||||||||||||||||
Direct ChassisLink, Inc.¤ |
8.25 | 11/12/2019 | 492,857 | 487,415 | 483,000 | |||||||||||||||
Direct ChassisLink, Inc. (Add-On Facility)¤ |
8.25 | 11/12/2019 | 503,175 | 503,175 | 493,111 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Cargo Transport |
|
996,032 | 990,590 | 976,111 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Chemicals, Plastics and Rubber 6.8%*: |
| |||||||||||||||||||
Chromaflo Technologies Corp. |
4.50 | 12/2/2019 | 1,215,245 | 1,213,118 | 1,205,122 | |||||||||||||||
Colouroz Investment 1 GmbH+ |
4.50 | 9/7/2021 | 641,644 | 635,899 | 641,644 | |||||||||||||||
Ineos Finance PLC+ |
4.25 | 3/31/2022 | 1,496,249 | 1,678,570 | 1,645,390 | |||||||||||||||
Methanol Holdings (Trinidad) Ltd. |
4.25 | 6/2/2022 | 1,135,461 | 1,124,106 | 1,124,106 | |||||||||||||||
OXEA Finance & Cy S.C.A.+ |
4.50 | 1/15/2020 | 500,000 | 527,613 | 542,285 | |||||||||||||||
OXEA Finance LLC+ |
4.25 | 1/15/2020 | 355,927 | 349,033 | 342,875 |
See accompanying Notes to Financial Statements.
23
Babson Global Floating Rate Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Bank Loans (Continued) |
| |||||||||||||||||||
Chemicals, Plastics and Rubber (Continued) |
| |||||||||||||||||||
Styrolution Group GmbH+ |
6.50 | % | 11/7/2019 | 597,000 | $ | 734,695 | $ | 668,267 | ||||||||||||
Univar, Inc. |
4.50 | 6/30/2022 | 2,079,426 | 2,069,029 | 2,076,183 | |||||||||||||||
Univar, Inc. |
5.00 | 6/30/2017 | 1,583,000 | 1,581,824 | 1,580,910 | |||||||||||||||
Vantage Specialty Chemicals, Inc. |
5.00 | 2/10/2019 | 1,446,367 | 1,433,685 | 1,417,440 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Chemicals, Plastics and Rubber |
|
11,050,319 | 11,347,572 | 11,244,222 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Containers, Packaging and Glass 4.4%*: |
| |||||||||||||||||||
BWAY Holding Co., Inc. |
5.50 | 8/14/2020 | 232,238 | 230,245 | 232,238 | |||||||||||||||
CD&R Millennium Holdco 6 Sarl+ |
4.50 | 7/31/2021 | 1,572,310 | 1,572,380 | 1,567,404 | |||||||||||||||
Chesapeake Corp. |
4.25 | 9/30/2020 | 1,138,233 | 1,137,862 | 1,132,064 | |||||||||||||||
Consolidated Container Co. LLC |
5.00 | 7/3/2019 | 1,496,154 | 1,494,170 | 1,461,249 | |||||||||||||||
Consolidated Container Co. LLC |
7.75 | 1/3/2020 | 188,280 | 185,199 | 175,100 | |||||||||||||||
Coveris |
4.50 | 5/8/2019 | 492,500 | 677,167 | 549,063 | |||||||||||||||
Coveris |
4.50 | 5/8/2019 | 309,131 | 308,034 | 309,387 | |||||||||||||||
Hilex Poly Co. LLC |
6.00 | 12/5/2021 | 404,843 | 401,072 | 407,037 | |||||||||||||||
Onex Wizard Acquisition Co. I Sarl+ |
4.25 | 3/13/2022 | 553,612 | 626,914 | 617,139 | |||||||||||||||
Onex Wizard US Acquisition, Inc.+ |
4.25 | 3/13/2022 | 445,069 | 442,934 | 444,290 | |||||||||||||||
Tekni-Plex, Inc. |
4.50 | 6/1/2022 | 373,750 | 371,898 | 373,377 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Containers, Packaging and Glass |
|
7,206,120 | 7,447,875 | 7,268,348 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Diversified Natural Resources, Precious Metals and Minerals 0.3%*: |
| |||||||||||||||||||
Cemex Espana S.A.+ |
4.78 | 2/14/2017 | 97,200 | 103,433 | 107,867 | |||||||||||||||
Cemex SAB de CV+ |
4.78 | 2/14/2017 | 441,850 | 441,297 | 440,745 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Diversified Natural Resources, Precious Metals and Minerals |
539,050 | 544,730 | 548,612 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Diversified/Conglomerate Manufacturing 1.7%*: |
| |||||||||||||||||||
Capital Safety North America Holdings, Inc. |
3.75 | 3/29/2021 | 344,257 | 343,898 | 343,251 | |||||||||||||||
Capital Safety North America Holdings, Inc. |
6.50 | 3/28/2022 | 251,661 | 251,392 | 253,549 | |||||||||||||||
Information Resources, Inc. |
4.75 | 9/30/2020 | 156,647 | 156,055 | 157,105 | |||||||||||||||
Pelican Products, Inc. |
5.25 | 4/10/2020 | 994,962 | 992,632 | 989,371 | |||||||||||||||
Quality Home Brands Holdings LLC |
7.75 | 5/25/2018 | 259,718 | 257,990 | 260,042 | |||||||||||||||
STS Operating, Inc. |
4.75 | 2/12/2021 | 312,931 | 313,224 | 311,366 | |||||||||||||||
West Corp. |
2.53 | 7/1/2019 | 495,181 | 479,727 | 480,325 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Diversified/Conglomerate Manufacturing |
2,815,357 | 2,794,918 | 2,795,009 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Diversified/Conglomerate Service 8.1%*: |
| |||||||||||||||||||
Aquilex Holdings LLC |
5.00 | 12/31/2020 | 197,140 | 196,749 | 196,647 | |||||||||||||||
Atrium Innovations, Inc.+ |
4.25 | 2/13/2021 | 827,738 | 826,451 | 802,906 | |||||||||||||||
Brock Holdings III, Inc. |
6.00 | 3/16/2017 | 1,595,585 | 1,571,455 | 1,585,613 | |||||||||||||||
EIG Investors Corp. |
5.00 | 11/9/2019 | 827,183 | 827,978 | 823,047 | |||||||||||||||
Garda World Security Corp.+ |
4.00 | 11/6/2020 | 1,169,214 | 1,162,059 | 1,164,338 | |||||||||||||||
Go Daddy Operating Co. LLC |
4.25 | 5/13/2021 | 862,427 | 859,106 | 862,565 | |||||||||||||||
MH Sub I LLC |
4.75 | 7/8/2021 | 586,811 | 583,899 | 585,162 |
See accompanying Notes to Financial Statements.
24
Babson Global Floating Rate Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Bank Loans (Continued) |
| |||||||||||||||||||
Diversified/Conglomerate Service (Continued) |
| |||||||||||||||||||
MH Sub I LLC |
8.50 | % | 7/8/2022 | 400,000 | $ | 396,478 | $ | 394,000 | ||||||||||||
MPH Acquisition Holdings LLC |
3.75 | 3/31/2021 | 749,302 | 747,732 | 744,215 | |||||||||||||||
Northgate Information Solutions Ltd.+ |
4.28 | 3/18/2018 | 507,622 | 680,154 | 547,999 | |||||||||||||||
Northgate Information Solutions Ltd.+ |
4.78 | 3/18/2018 | 503,801 | 675,369 | 543,875 | |||||||||||||||
Power Team Services LLC |
8.25 | 11/6/2020 | 500,000 | 496,132 | 492,500 | |||||||||||||||
RP Crown Parent LLC |
6.00 | 12/21/2018 | 548,203 | 549,858 | 525,935 | |||||||||||||||
RP Crown Parent LLC |
11.25 | 12/20/2019 | 678,571 | 690,366 | 621,741 | |||||||||||||||
Sabre, Inc. |
4.00 | 2/19/2019 | 738,728 | 734,430 | 737,575 | |||||||||||||||
SkillSoft Corp. |
5.75 | 4/28/2021 | 945,084 | 939,631 | 916,731 | |||||||||||||||
Triple Point Technology, Inc. |
5.25 | 7/10/2020 | 341,331 | 316,095 | 306,345 | |||||||||||||||
Triple Point Technology, Inc. |
9.25 | 7/10/2021 | 145,677 | 136,543 | 122,368 | |||||||||||||||
Vogue International, Inc. |
5.75 | 2/14/2020 | 1,440,373 | 1,452,180 | 1,442,174 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Diversified/Conglomerate Service |
|
13,564,790 | 13,842,665 | 13,415,736 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Ecological 2.5%*: |
| |||||||||||||||||||
Biffa Waste Services Ltd.+ |
5.68 | 1/30/2018 | 2,000,000 | 3,170,356 | 3,065,069 | |||||||||||||||
Emerald 3 Ltd.+ |
8.00 | 5/31/2022 | 390,426 | 386,999 | 389,450 | |||||||||||||||
PHS Group PLC+ |
6.00 | 4/17/2020 | 500,000 | 769,929 | 761,074 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Ecological |
|
2,890,426 | 4,327,284 | 4,215,593 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Electronics 2.6%*: |
| |||||||||||||||||||
CDW LLC |
3.25 | 4/29/2020 | 1,196,940 | 1,191,136 | 1,186,024 | |||||||||||||||
Freescale Semiconductor, Inc. |
4.25 | 2/28/2020 | 736,263 | 736,263 | 736,469 | |||||||||||||||
Kronos, Inc. |
4.50 | 10/30/2019 | 196,597 | 195,522 | 196,401 | |||||||||||||||
Magic Newco LLC+ |
5.00 | 12/12/2018 | 95,132 | 95,132 | 95,156 | |||||||||||||||
Renaissance Learning, Inc. |
4.50 | 4/9/2021 | 1,493,700 | 1,473,169 | 1,473,788 | |||||||||||||||
SS&C Technologies, Inc. |
4.00 | 6/23/2022 | 104,284 | 103,763 | 104,220 | |||||||||||||||
SS&C Technologies, Inc. |
4.00 | 6/23/2022 | 462,921 | 460,607 | 462,634 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Electronics |
|
4,285,837 | 4,255,592 | 4,254,692 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Finance 5.5%*: |
| |||||||||||||||||||
AssuredPartners Capital, Inc. |
5.00 | 3/31/2021 | 305,536 | 304,273 | 305,347 | |||||||||||||||
AssuredPartners Capital, Inc. |
7.75 | 4/2/2022 | 136,522 | 135,363 | 134,303 | |||||||||||||||
Confie Seguros Holdings II Co. |
5.75 | 11/9/2018 | 534,085 | 532,263 | 533,861 | |||||||||||||||
Cunningham Lindsey US, Inc. |
5.00 | 12/10/2019 | 488,697 | 486,942 | 477,701 | |||||||||||||||
Cunningham Lindsey US, Inc. |
9.25 | 6/10/2020 | 748,546 | 750,073 | 712,990 | |||||||||||||||
Eze Castle Software, Inc. |
4.00 | 4/6/2020 | 971,818 | 966,843 | 966,958 | |||||||||||||||
First Data Corp. |
4.03 | 6/23/2022 | 806,874 | 802,840 | 802,840 | |||||||||||||||
Intertrust Group Holding B.V.+ |
8.00 | 4/16/2022 | 192,451 | 191,220 | 191,392 | |||||||||||||||
Intertrust Group Holding B.V.+ |
8.00 | 4/16/2022 | 500,000 | 680,712 | 556,031 | |||||||||||||||
Moneygram International, Inc. |
4.25 | 3/27/2020 | 1,083,758 | 1,010,598 | 1,028,671 | |||||||||||||||
National Financial Partners Corp. |
4.50 | 7/1/2020 | 131,865 | 131,865 | 131,495 | |||||||||||||||
P2 Newco Acquisition, Inc. |
5.50 | 10/22/2020 | 402,751 | 399,680 | 403,254 | |||||||||||||||
P2 Newco Acquisition, Inc. |
9.50 | 10/22/2021 | 500,000 | 496,038 | 497,500 | |||||||||||||||
SAM Finance Lux Sarl+ |
5.00 | 12/17/2020 | 343,568 | 554,751 | 538,287 |
See accompanying Notes to Financial Statements.
25
Babson Global Floating Rate Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Bank Loans (Continued) |
| |||||||||||||||||||
Finance (Continued) |
| |||||||||||||||||||
Sedgwick, Inc. |
3.75 | % | 3/1/2021 | 493,750 | $ | 492,748 | $ | 485,460 | ||||||||||||
Sedgwick, Inc. |
6.75 | 2/28/2022 | 561,418 | 560,813 | 550,016 | |||||||||||||||
VFH Parent LLC |
5.25 | 11/6/2019 | 648,329 | 644,402 | 649,950 | |||||||||||||||
Wall Street Systems Delaware, Inc. |
4.50 | 4/30/2021 | 248,399 | 247,362 | 247,935 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Finance |
|
9,098,367 | 9,388,786 | 9,213,991 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Healthcare, Education and Childcare 8.9%*: |
| |||||||||||||||||||
Accellent, Inc. |
4.50 | 3/12/2021 | 1,537,578 | 1,535,443 | 1,526,692 | |||||||||||||||
ADMI Corp. |
5.50 | 4/30/2022 | 1,500,000 | 1,511,068 | 1,503,750 | |||||||||||||||
Britax US Holdings, Inc. |
4.50 | 10/15/2020 | 432,963 | 431,316 | 338,434 | |||||||||||||||
CareCore National LLC |
5.50 | 3/5/2021 | 679,619 | 679,200 | 680,754 | |||||||||||||||
Drumm Investors LLC |
6.75 | 5/4/2018 | 869,028 | 863,021 | 877,180 | |||||||||||||||
Endo Luxembourg Finance Co. I Sarl |
3.75 | 6/11/2022 | 540,680 | 539,328 | 541,697 | |||||||||||||||
Heartland Dental LLC |
5.50 | 12/21/2018 | 386,125 | 384,790 | 385,159 | |||||||||||||||
Kindred Healthcare, Inc. |
4.25 | 4/9/2021 | 700,787 | 695,741 | 700,612 | |||||||||||||||
Ortho-Clinical Diagnostics, Inc. |
4.75 | 6/30/2021 | 1,046,342 | 1,037,380 | 1,024,673 | |||||||||||||||
PharMedium Healthcare Corp. |
4.25 | 1/28/2021 | 1,092,879 | 1,090,711 | 1,081,043 | |||||||||||||||
PRA Holdings, Inc. |
4.50 | 9/23/2020 | 680,303 | 675,197 | 680,303 | |||||||||||||||
Rodenstock GmbH+ |
4.78 | 5/31/2019 | 1,500,000 | 1,763,719 | 1,649,281 | |||||||||||||||
RPI Finance Trust |
3.50 | 11/9/2020 | 599,806 | 599,806 | 600,178 | |||||||||||||||
Synarc-Biocore Holdings LLC |
5.50 | 3/10/2021 | 493,750 | 489,713 | 481,406 | |||||||||||||||
Synarc-Biocore Holdings LLC |
9.25 | 3/10/2022 | 500,000 | 495,798 | 455,000 | |||||||||||||||
Tecomet, Inc. |
5.75 | 12/5/2021 | 975,782 | 945,813 | 959,925 | |||||||||||||||
Tunstall Group Holdings Ltd.+ |
5.28 | 10/16/2020 | 500,000 | 793,369 | 663,853 | |||||||||||||||
Valeant Pharmaceuticals International |
4.00 | 4/1/2022 | 593,681 | 590,796 | 592,689 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Healthcare, Education and Childcare |
14,629,323 | 15,122,209 | 14,742,629 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Home and Office Furnishings, Housewares, and Durable Consumer Products 1.3%*: |
| |||||||||||||||||||
HMK Intermediate Holdings LLC |
5.00 | 3/30/2019 | 476,795 | 476,209 | 474,411 | |||||||||||||||
Leslies Poolmart, Inc. |
4.25 | 10/16/2019 | 539,942 | 539,942 | 540,071 | |||||||||||||||
WMF AG+ |
4.78 | 9/22/2021 | 1,000,000 | 1,086,819 | 1,110,201 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Home and Office Furnishings, Housewares, and Durable Consumer Products |
2,016,737 | 2,102,970 | 2,124,683 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Hotels, Motels, Inns and Gaming 0.5%*: |
| |||||||||||||||||||
Cyan Blue Holdco 3 Ltd.+ |
6.50 | 2/25/2022 | 500,000 | 731,588 | 783,904 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Insurance 1.8%*: |
| |||||||||||||||||||
AmWINS Group LLC |
5.25 | 9/6/2019 | 151,371 | 151,097 | 152,582 | |||||||||||||||
Asurion LLC |
5.00 | 5/24/2019 | 967,980 | 967,303 | 969,597 | |||||||||||||||
Hub International Ltd. |
4.00 | 10/2/2020 | 1,730,041 | 1,723,376 | 1,715,992 | |||||||||||||||
York Risk Services Holding Corp. |
4.75 | 10/1/2021 | 192,678 | 191,372 | 188,343 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Insurance |
|
3,042,070 | 3,033,148 | 3,026,514 | ||||||||||||||||
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
26
Babson Global Floating Rate Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Bank Loans (Continued) |
| |||||||||||||||||||
Leisure, Amusement, Entertainment 3.2%*: |
| |||||||||||||||||||
AP NMT Acquisition B.V.+ |
7.00 | % | 8/13/2021 | 540,400 | $ | 650,891 | $ | 600,458 | ||||||||||||
Delta 2 (Lux) Sarl+ |
4.75 | 7/30/2021 | 1,587,247 | 1,582,406 | 1,576,756 | |||||||||||||||
Delta 2 (Lux) Sarl+ |
7.75 | 7/31/2022 | 437,500 | 436,731 | 436,406 | |||||||||||||||
SeaWorld Parks & Entertainment, Inc. |
3.00 | 5/14/2020 | 647,432 | 622,921 | 622,507 | |||||||||||||||
SeaWorld Parks & Entertainment, Inc. |
4.00 | 5/14/2020 | 1,112,596 | 1,113,359 | 1,107,378 | |||||||||||||||
WMG Acquisition Corp. |
3.75 | 7/1/2020 | 994,937 | 977,937 | 978,928 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Leisure, Amusement, Entertainment |
|
5,320,112 | 5,384,245 | 5,322,433 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Machinery Non-Agriculture, Non-Construction, Non-Electronic 4.3%*: |
| |||||||||||||||||||
Doncasters Finance US LLC |
4.50 | 4/9/2020 | 962,057 | 960,121 | 960,258 | |||||||||||||||
Gardner Denver, Inc. |
4.25 | 7/30/2020 | 1,292,671 | 1,262,408 | 1,259,100 | |||||||||||||||
Husky Injection Molding Systems Ltd.+ |
4.25 | 6/30/2021 | 943,171 | 942,338 | 937,474 | |||||||||||||||
Husky Injection Molding Systems Ltd.+ |
7.25 | 6/30/2022 | 450,443 | 431,161 | 444,249 | |||||||||||||||
Intelligrated, Inc. |
4.50 | 7/30/2018 | 1,109,949 | 1,100,391 | 1,107,174 | |||||||||||||||
Schenck Measuring and Process Technologies+ |
3.78 | 4/28/2017 | 2,000,000 | 1,923,771 | 1,975,000 | |||||||||||||||
Silver II US Holdings LLC |
4.00 | 12/13/2019 | 445,480 | 441,087 | 429,220 | |||||||||||||||
TCH-2 Holding LLC |
5.50 | 5/6/2021 | 108,172 | 107,263 | 107,767 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Machinery Non-Agriculture, Non-Construction, Non-Electronic |
7,311,943 | 7,168,540 | 7,220,242 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Mining, Steel, Iron and Non-Precious Metals 2.3%*: |
| |||||||||||||||||||
Arch Coal, Inc. |
6.25 | 5/16/2018 | 1,987,254 | 1,701,461 | 1,352,585 | |||||||||||||||
Boomerang Tube LLC~ |
11.00 | 10/11/2017 | 249,123 | 245,561 | 125,807 | |||||||||||||||
H.C. Starck GmbH+ |
3.03 | 5/30/2016 | 500,000 | 492,500 | 497,500 | |||||||||||||||
H.C. Starck GmbH+ |
3.03 | 5/30/2016 | 500,000 | 679,250 | 553,010 | |||||||||||||||
Metal Services LLC |
6.00 | 6/30/2017 | 105,283 | 105,284 | 105,107 | |||||||||||||||
Murray Energy Corp. |
7.50 | 4/16/2020 | 750,000 | 728,179 | 693,630 | |||||||||||||||
Peabody Energy Corp. |
4.25 | 9/24/2020 | 623,551 | 561,694 | 523,066 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Mining, Steel, Iron and Non-Precious Metals |
4,715,211 | 4,513,929 | 3,850,705 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Oil and Gas 4.9%*: |
| |||||||||||||||||||
Caelus Energy Alaska O3 LLC |
8.75 | 4/15/2020 | 1,692,308 | 1,518,379 | 1,370,769 | |||||||||||||||
CITGO Holding, Inc. |
9.50 | 5/12/2018 | 1,073,131 | 1,054,991 | 1,075,277 | |||||||||||||||
Drillships Financing Holding, Inc. |
6.00 | 3/31/2021 | 1,500,000 | 1,278,240 | 1,219,995 | |||||||||||||||
Drillships Ocean Ventures, Inc. |
5.50 | 7/25/2021 | 253,325 | 251,118 | 215,010 | |||||||||||||||
Fieldwood Energy LLC |
8.38 | 9/30/2020 | 1,725,000 | 1,391,284 | 1,317,469 | |||||||||||||||
Floatel International Ltd. |
6.00 | 6/27/2020 | 406,468 | 403,039 | 321,110 | |||||||||||||||
Paragon Offshore Finance Co.+ |
3.75 | 7/18/2021 | 548,627 | 441,258 | 397,755 | |||||||||||||||
Sabine Oil & Gas LLC~ |
8.75 | 12/31/2018 | 700,000 | 708,817 | 239,169 | |||||||||||||||
Seadrill Partners Finco LLC |
4.00 | 2/21/2021 | 932,636 | 926,259 | 702,396 | |||||||||||||||
Southcross Holdings Borrower LP |
6.00 | 8/4/2021 | 145,959 | 145,319 | 141,580 | |||||||||||||||
Templar Energy LLC |
8.50 | 11/25/2020 | 750,000 | 561,094 | 550,500 | |||||||||||||||
TPF II Power LLC |
5.50 | 10/2/2021 | 521,067 | 517,557 | 525,256 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Oil and Gas |
|
10,248,521 | 9,197,355 | 8,076,286 | ||||||||||||||||
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
27
Babson Global Floating Rate Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Bank Loans (Continued) |
| |||||||||||||||||||
Personal and Non-Durable Consumer Products Mfg. Only 0.2%*: |
| |||||||||||||||||||
Berlin Packaging LLC |
4.50 | % | 10/1/2021 | 336,937 | $ | 335,429 | $ | 336,833 | ||||||||||||
|
|
|
|
|
|
|||||||||||||||
Personal Transportation 0.2%*: |
| |||||||||||||||||||
Travelport Finance (Luxembourg) Sarl |
5.75 | 9/2/2021 | 319,245 | 315,714 | 319,587 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Personal, Food and Miscellaneous 0.1%*: |
| |||||||||||||||||||
Redtop Acquisitions Ltd.+ |
8.25 | 6/3/2021 | 156,777 | 155,224 | 156,973 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Printing and Publishing 2.7%*: |
| |||||||||||||||||||
Cengage Learning Acquisitions, Inc. |
7.00 | 3/31/2020 | 1,097,730 | 1,092,485 | 1,097,730 | |||||||||||||||
Eden Bidco Ltd.+ |
6.00 | 4/28/2022 | 550,000 | 576,192 | 608,569 | |||||||||||||||
EMI Music Publishing Ltd. |
3.75 | 6/29/2018 | 242,664 | 242,664 | 242,118 | |||||||||||||||
Houghton Mifflin Harcourt Publishing Co. |
4.00 | 5/31/2021 | 1,368,236 | 1,366,406 | 1,361,394 | |||||||||||||||
R.H. Donnelley, Inc. |
9.75 | 12/31/2016 | 103,399 | 82,095 | 51,010 | |||||||||||||||
Springer Science+Business Media Deutschland GmbH+ |
4.75 | 8/14/2020 | 909,272 | 911,304 | 907,572 | |||||||||||||||
SuperMedia, Inc. |
11.60 | 12/30/2016 | 262,823 | 228,657 | 155,723 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Printing and Publishing |
|
4,534,124 | 4,499,803 | 4,424,116 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Retail Stores 4.2%*: |
| |||||||||||||||||||
Advantage Sales & Marketing, Inc. |
4.25 | 7/23/2021 | 993,984 | 990,653 | 988,457 | |||||||||||||||
BJs Wholesale Club, Inc. |
4.50 | 9/26/2019 | 134,413 | 133,926 | 134,153 | |||||||||||||||
Burlington Coat Factory Warehouse Corp. |
4.25 | 8/13/2021 | 429,744 | 427,861 | 429,405 | |||||||||||||||
Dollar Tree, Inc. |
3.50 | 3/9/2022 | 382,829 | 382,825 | 382,511 | |||||||||||||||
Douglas Holding AG+ |
5.00 | 6/26/2022 | 800,000 | 889,172 | 887,420 | |||||||||||||||
FleetPride Corp. |
5.25 | 11/19/2019 | 1,481,709 | 1,466,698 | 1,468,122 | |||||||||||||||
J. Crew Group, Inc. |
4.00 | 3/5/2021 | 1,227,891 | 1,163,664 | 1,056,833 | |||||||||||||||
Maxeda DIY B.V.+ |
5.28 | 6/29/2017 | 500,000 | 556,683 | 529,932 | |||||||||||||||
Staples, Inc. |
3.50 | 4/7/2021 | 431,902 | 429,742 | 430,913 | |||||||||||||||
Talbots, Inc. (The) |
5.50 | 3/19/2020 | 741,241 | 730,208 | 722,710 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Retail Stores |
|
7,123,713 | 7,171,432 | 7,030,456 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Telecommunications 2.6%*: |
| |||||||||||||||||||
Altice Financing SA+ |
5.50 | 7/2/2019 | 261,641 | 263,676 | 263,537 | |||||||||||||||
Carros Finance Luxembourg Sarl |
4.50 | 9/30/2021 | 291,518 | 290,862 | 291,518 | |||||||||||||||
Eircom Finco Sarl+ |
4.78 | 9/30/2019 | 988,319 | 1,322,736 | 1,078,215 | |||||||||||||||
ION Trading Technologies Ltd. |
1.00 | 6/16/2021 | 1,140,458 | 1,129,054 | 1,129,054 | |||||||||||||||
ION Trading Technologies Sarl+ |
7.25 | 6/10/2022 | 842,143 | 836,513 | 840,037 | |||||||||||||||
Numericable US LLC+ |
4.50 | 5/21/2020 | 665,852 | 660,407 | 667,277 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Telecommunications |
|
4,189,931 | 4,503,248 | 4,269,638 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Textiles and Leather 0.4%*: |
| |||||||||||||||||||
Fullbeauty Brands, Inc. |
4.75 | 3/18/2021 | 741,508 | 737,936 | 738,727 | |||||||||||||||
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
28
Babson Global Floating Rate Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Bank Loans (Continued) |
| |||||||||||||||||||
Utilities 0.3%*: |
| |||||||||||||||||||
Bayonne Energy Center LLC |
5.00 | % | 8/19/2021 | 49,292 | $ | 49,075 | $ | 49,292 | ||||||||||||
Calpine Construction Finance Co. LP |
3.00 | 5/3/2020 | 492,462 | 486,761 | 482,204 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Utilities |
|
541,754 | 535,836 | 531,496 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Bank Loans |
132,385,938 | 136,630,240 | 132,771,882 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Corporate Bonds 13.7%*: |
| |||||||||||||||||||
Automobile 0.1%*: |
| |||||||||||||||||||
Grupo Antolin Dutch B.V.+ |
5.13 | 6/30/2022 | 200,000 | 226,590 | 226,497 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Banking 0.1%*: |
| |||||||||||||||||||
Lock AS+ |
7.00 | 8/15/2021 | 100,000 | 134,225 | 117,617 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Beverage, Food and Tobacco 1.0%*: |
| |||||||||||||||||||
1011778 B.C. Unlimited Liability Co.+^ |
4.63 | 1/15/2022 | 121,000 | 121,000 | 119,185 | |||||||||||||||
EWOS Holding AS+ |
6.51 | # | 11/1/2020 | 1,000,000 | 166,715 | 126,268 | ||||||||||||||
Findus Bondco SA+ |
9.13 | 7/1/2018 | 100,000 | 139,419 | 116,781 | |||||||||||||||
Iglo Foods Bondco PLC+ |
4.49 | # | 6/15/2020 | 1,000,000 | 1,116,476 | 1,114,848 | ||||||||||||||
Twinkle Pizza PLC+ |
6.63 | 8/1/2021 | 100,000 | 169,730 | 162,184 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Beverage, Food and Tobacco |
|
2,321,000 | 1,713,340 | 1,639,266 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Broadcasting and Entertainment 0.1%*: |
|
|||||||||||||||||||
Univision Communications, Inc.^ |
5.13 | 2/15/2025 | 149,000 | 151,017 | 143,815 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Buildings and Real Estate 0.1%*: |
|
|||||||||||||||||||
Paroc Group Oy+ |
5.24 | # | 5/15/2020 | 100,000 | 137,565 | 105,799 | ||||||||||||||
Paroc Group Oy+ |
6.25 | 5/15/2020 | 100,000 | 137,565 | 109,557 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Buildings and Real Estate |
|
200,000 | 275,130 | 215,356 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Cargo Transport 0.4%*: |
|
|||||||||||||||||||
Florida East Coast Holdings Corp.^ |
6.75 | 5/1/2019 | 550,000 | 542,425 | 551,375 | |||||||||||||||
WFS Global Holding SAS+ |
9.50 | 7/15/2022 | 100,000 | 113,435 | 112,600 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Cargo Transport |
|
650,000 | 655,860 | 663,975 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Chemicals, Plastics and Rubber 0.4%*: |
|
|||||||||||||||||||
Ineos Finance PLC+ |
4.00 | 5/1/2023 | 150,000 | 162,382 | 158,879 | |||||||||||||||
Pinnacle Operating Corp.^ |
9.00 | 11/15/2020 | 500,000 | 533,754 | 496,250 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Chemicals, Plastics and Rubber |
|
650,000 | 696,136 | 655,129 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Containers, Packaging and Glass 0.3%*: |
|
|||||||||||||||||||
Innovia Group Finance PLC+ |
4.99 | # | 3/31/2020 | 500,000 | 684,986 | 552,965 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Diversified/Conglomerate Manufacturing 0.3%*: |
|
|||||||||||||||||||
Appvion, Inc.^ |
9.00 | 6/1/2020 | 460,000 | 467,776 | 289,800 | |||||||||||||||
Galapagos SA+ |
4.74 | # | 6/15/2021 | 200,000 | 272,630 | 220,740 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Diversified/Conglomerate Manufacturing |
660,000 | 740,406 | 510,540 | |||||||||||||||||
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
29
Babson Global Floating Rate Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Corporate Bonds (Continued) |
| |||||||||||||||||||
Diversified/Conglomerate Service 1.4%*: |
|
|||||||||||||||||||
Carlson Travel Holdings, Inc. PIK^ |
7.50 | % | 8/15/2019 | 470,000 | $ | 475,196 | $ | 477,050 | ||||||||||||
Sabre GLBL, Inc.^ |
5.38 | 4/15/2023 | 1,061,000 | 1,082,049 | 1,045,085 | |||||||||||||||
United Rentals North America, Inc. |
4.63 | 7/15/2023 | 176,000 | 176,000 | 172,586 | |||||||||||||||
Verisure Holding AB+ |
8.75 | 9/1/2018 | 500,000 | 580,755 | 588,083 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Diversified/Conglomerate Service |
|
2,207,000 | 2,314,000 | 2,282,804 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Finance 2.7%*: |
|
|||||||||||||||||||
Equiniti Newco 2 PLC+ |
6.32 | # | 12/15/2018 | 750,000 | 1,211,979 | 1,154,869 | ||||||||||||||
Equiniti Newco 2 PLC+ |
7.13 | 12/15/2018 | 550,000 | 868,440 | 868,508 | |||||||||||||||
Galaxy Bidco Ltd.+ |
5.57 | # | 11/15/2019 | 100,000 | 161,051 | 155,554 | ||||||||||||||
Lowell Group Financing PLC+ |
5.88 | 4/1/2019 | 100,000 | 166,730 | 152,443 | |||||||||||||||
Marlin Intermediate Holdings PLC+ |
10.50 | 8/1/2020 | 500,000 | 838,625 | 867,094 | |||||||||||||||
Travelex Financing PLC+ |
6.57 | # | 8/1/2018 | 700,000 | 1,121,314 | 1,094,375 | ||||||||||||||
Travelex Financing PLC+ |
8.00 | 8/1/2018 | 100,000 | 158,548 | 163,423 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Finance |
|
2,800,000 | 4,526,687 | 4,456,266 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Grocery 0.1%*: |
|
|||||||||||||||||||
Premier Foods Finance PLC+ |
5.57 | # | 3/16/2020 | 100,000 | 167,370 | 146,833 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Healthcare, Education and Childcare 1.5%*: |
|
|||||||||||||||||||
Care UK Health & Social Care PLC+ |
5.57 | # | 7/15/2019 | 800,000 | 1,161,107 | 1,219,290 | ||||||||||||||
Tenet Healthcare Corp.^ |
3.79 | # | 6/15/2020 | 819,000 | 814,936 | 826,166 | ||||||||||||||
Unilabs Subholding AB+ |
7.26 | # | 7/15/2018 | 400,000 | 550,402 | 445,940 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Healthcare, Education and Childcare |
|
2,019,000 | 2,526,445 | 2,491,396 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Hotels, Motels, Inns and Gaming 0.5%*: |
|
|||||||||||||||||||
Gala Group Finance PLC+ |
8.88 | 9/1/2018 | 450,000 | 711,992 | 740,648 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Insurance 0.9%*: |
|
|||||||||||||||||||
Hastings Insurance Group Finance PLC+ |
6.57 | # | 10/21/2019 | 150,000 | 238,061 | 235,572 | ||||||||||||||
Hastings Insurance Group Finance PLC+ |
8.00 | 10/21/2020 | 500,000 | 824,102 | 832,616 | |||||||||||||||
TIG Finco PLC+ |
8.50 | # | 3/2/2020 | 46,609 | 68,205 | 76,896 | ||||||||||||||
TIG Finco PLC+^ |
8.75 | 4/2/2020 | 207,453 | 308,378 | 322,701 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Insurance |
|
904,062 | 1,438,746 | 1,467,785 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Leisure, Amusement, Entertainment 0.3%*: |
| |||||||||||||||||||
Vougeot Bidco PLC+ |
5.26 | # | 7/15/2020 | 100,000 | 135,168 | 111,206 | ||||||||||||||
WMG Acquisition Corp. |
6.25 | 1/15/2021 | 387,000 | 468,087 | 437,919 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Leisure, Amusement, Entertainment |
|
487,000 | 603,255 | 549,125 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Oil and Gas 0.6%*: |
| |||||||||||||||||||
Halcon Resources Corp.^ |
8.63 | 2/1/2020 | 144,000 | 144,000 | 142,200 | |||||||||||||||
Sabine Pass Liquefaction LLC^ |
5.63 | 3/1/2025 | 495,000 | 495,000 | 490,050 | |||||||||||||||
Shelf Drilling Holdings Ltd.+^ |
8.63 | 11/1/2018 | 438,000 | 361,149 | 389,820 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Oil and Gas |
|
1,077,000 | 1,000,149 | 1,022,070 | ||||||||||||||||
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
30
Babson Global Floating Rate Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Corporate Bonds (Continued) |
| |||||||||||||||||||
Personal Transportation 0.1%*: |
| |||||||||||||||||||
AA Bond Co. Ltd.+ |
5.50 | % | 7/31/2043 | 150,000 | $ | 223,140 | $ | 234,273 | ||||||||||||
|
|
|
|
|
|
|||||||||||||||
Personal, Food and Miscellaneous 0.5%*: |
|
|||||||||||||||||||
Brakes Capital+ |
4.99 | # | 12/15/2018 | 100,000 | 136,645 | 111,296 | ||||||||||||||
Brakes Capital+ |
7.13 | 12/15/2018 | 300,000 | 514,604 | 483,178 | |||||||||||||||
Financiere Quick SAS+ |
4.76 | # | 4/15/2019 | 200,000 | 275,616 | 193,984 | ||||||||||||||
TeamSystem Holding SpA+ |
7.38 | 5/15/2020 | 100,000 | 132,587 | 118,118 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Personal, Food and Miscellaneous |
|
700,000 | 1,059,452 | 906,576 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Retail Stores 1.6%*: |
| |||||||||||||||||||
Boing Group Financing PLC+ |
6.63 | 7/15/2019 | 350,000 | 396,245 | 377,703 | |||||||||||||||
Brighthouse Group PLC+ |
7.88 | 5/15/2018 | 150,000 | 243,460 | 230,974 | |||||||||||||||
HD Supply, Inc.^ |
5.25 | 12/15/2021 | 1,000,000 | 1,025,911 | 1,013,750 | |||||||||||||||
House of Fraser Funding PLC+ |
8.88 | 8/15/2018 | 500,000 | 798,609 | 819,485 | |||||||||||||||
HSS Financing PLC+ |
6.75 | 8/1/2019 | 65,774 | 108,872 | 107,998 | |||||||||||||||
Takko Luxembourg 2 S.C.A.+ |
9.88 | 4/15/2019 | 100,000 | 132,433 | 51,395 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Retail Stores |
|
2,165,774 | 2,705,530 | 2,601,305 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Telecommunications 0.7%*: |
| |||||||||||||||||||
Numericable-SFR+ |
5.38 | 5/15/2022 | 100,000 | 138,295 | 113,157 | |||||||||||||||
Numericable-SFR+ |
5.63 | 5/15/2024 | 100,000 | 138,165 | 112,321 | |||||||||||||||
Numericable-SFR+^ |
6.00 | 5/15/2022 | 646,000 | 645,234 | 636,714 | |||||||||||||||
Wind Acquisition Finance SA+ |
4.00 | 7/15/2020 | 150,000 | 161,192 | 166,809 | |||||||||||||||
Wind Acquisition Finance SA+ |
4.15 | # | 7/15/2020 | 150,000 | 159,292 | 166,743 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Telecommunications |
1,146,000 | 1,242,178 | 1,195,744 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Corporate Bonds |
19,635,836 | 23,796,634 | 22,819,985 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Fixed Income |
152,021,774 | 160,426,874 | 155,591,867 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Short-Term Investments 14.1%*: |
| |||||||||||||||||||
Bank Deposit 14.0%*: |
| |||||||||||||||||||
State Street Bank & Trust Co. Euro Time Deposit |
0.01 | 7/1/2015 | 23,274,995 | 23,274,995 | 23,274,995 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Bank Loan 0.1%*§: |
| |||||||||||||||||||
Mining, Steel, Iron and Non-Precious Metals 0.1%*: |
| |||||||||||||||||||
Boomerang Tube LLC¤ |
11.28 | 10/7/2015 | 78,780 | 77,204 | 78,780 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Short-Term Investments |
23,353,775 | 23,352,199 | 23,353,775 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Investments |
175,375,549 | 183,779,073 | 178,945,642 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Other assets and liabilities (7.7%)* |
(12,786,505 | ) | ||||||||||||||||||
Net Assets 100.0% |
$166,159,137 | |||||||||||||||||||
|
|
See accompanying Notes to Financial Statements.
31
Babson Global Floating Rate Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
PIK | Payment-in-kind |
| Unless otherwise indicated, all principal amounts are denominated in United States Dollars. |
* | Calculated as a percentage of net assets applicable to common shareholders. |
+ | Foreign security. |
Distributions of investments by country of risk (excluding temporary cash investments) as a percentage of total investments in securities, is as follows:
United States | 63.2% | |||||
United Kingdom | 18.4% | |||||
Germany | 7.6% | |||||
Canada | 2.8% | |||||
Switzerland | 1.8% | |||||
Netherlands | 1.2% | |||||
France | 1.2% | |||||
Spain | 1.0% | |||||
Other (Individually less than 1%) | 2.8% | |||||
|
|
|||||
Total | 100.0% | |||||
|
|
^ | Security acquired in a transaction 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. |
§ | 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, 2015. 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. |
¤ | For fair value measurement disclosure purposes, security is categorized as Level 3 (see Note 2). |
| Illiquid security. |
~ | Defaulted security. |
# | Variable rate security. The interest rate shown is the rate in effect at June 30, 2015. |
A summary of outstanding derivatives at June 30, 2015 is as follows:
Forward Foreign Currency Exchange Contracts to Buy
EXPIRATION DATE |
COUNTERPARTY | LOCAL CURRENCY |
VALUE IN USD | IN EXCHANGE FOR USD |
NET UNREALIZED DEPRECIATION |
|||||||||||||||||
07/14/15 | Morgan Stanley |
EUR | 1,500,000 | 1,672,544 | 1,687,479 | $ | (14,935 | ) |
See accompanying Notes to Financial Statements.
32
Babson Global Floating Rate Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
Forward Foreign Currency Exchange Contracts to Sell
EXPIRATION DATE |
COUNTERPARTY | LOCAL CURRENCY |
VALUE IN USD | IN EXCHANGE FOR USD |
NET UNREALIZED APPRECIATION (DEPRECIATION) |
|||||||||||||||||
07/14/15 | Morgan Stanley |
EUR | 17,509,486 | 19,523,594 | 19,676,718 | $ | 153,124 | |||||||||||||||
07/14/15 | Morgan Stanley |
GBP | 11,930,996 | 18,745,001 | 18,237,334 | (507,667 | ) | |||||||||||||||
07/14/15 | Morgan Stanley |
NOK | 1,019,018 | 129,934 | 129,342 | (592 | ) | |||||||||||||||
|
|
|||||||||||||||||||||
Net unrealized depreciation on forward foreign exchange contracts to sell |
|
$ | (355,135 | ) | ||||||||||||||||||
|
|
Currency Legend
EUR | | Euro | ||
GBP | | British Pound Sterling | ||
NOK | | Norwegian Krona |
See accompanying Notes to Financial Statements.
33
Babson Global Credit Income Opportunities Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Fixed Income 91.9%*: |
| |||||||||||||||||||
Asset-Backed Securities 16.5%*: |
| |||||||||||||||||||
CDO/CLO 16.5%*: |
| |||||||||||||||||||
Apidos CLO XII^ |
5.15 | #% | 4/15/2025 | 500,000 | $448,151 | $414,870 | ||||||||||||||
Apidos CLO XV^ |
5.76 | # | 10/20/2025 | 500,000 | 462,554 | 425,939 | ||||||||||||||
Atlas Senior Loan Fund Ltd.^ |
5.45 | # | 10/15/2026 | 800,000 | 731,231 | 747,276 | ||||||||||||||
Avery Point CLO Ltd. 2014-1 AE^ |
4.88 | # | 4/25/2026 | 500,000 | 461,217 | 441,101 | ||||||||||||||
BlueMountain CLO Ltd.^ |
Zero Coupon | 4/30/2026 | 250,000 | 238,762 | 200,149 | |||||||||||||||
Carlyle Global Market Strategies CLO 2013-3 Ltd.^ |
4.85 | # | 7/15/2025 | 500,000 | 457,710 | 457,341 | ||||||||||||||
Carlyle Global Market Strategies CLO 2013-4 Ltd.^ |
4.75 | # | 10/15/2025 | 500,000 | 462,990 | 457,222 | ||||||||||||||
Carlyle Global Market Strategies CLO 2013-4 Ltd.^ |
5.45 | # | 10/15/2025 | 500,000 | 455,271 | 423,363 | ||||||||||||||
Carlyle Global Market Strategies CLO 2014-1 Ltd.^ |
4.72 | # | 4/17/2025 | 500,000 | 447,087 | 453,308 | ||||||||||||||
Dryden XXXI Senior Loan Fund^ |
4.51 | # | 4/18/2026 | 1,000,000 | 891,308 | 883,819 | ||||||||||||||
Dryden XXXI Senior Loan Fund^ |
5.61 | # | 4/18/2026 | 500,000 | 461,311 | 412,069 | ||||||||||||||
Eaton Vance CLO 2013-1 Ltd.^ |
5.26 | # | 11/13/2024 | 500,000 | 465,238 | 466,605 | ||||||||||||||
GoldenTree Loan Opportunities VII Ltd.^ |
5.51 | # | 4/25/2025 | 500,000 | 466,866 | 433,377 | ||||||||||||||
LCM XIII LP^ |
5.11 | # | 1/19/2023 | 750,000 | 702,854 | 706,815 | ||||||||||||||
LCM XV LP^ |
4.71 | # | 8/25/2024 | 500,000 | 467,184 | 451,859 | ||||||||||||||
LCM XVII LP^ |
5.02 | # | 10/15/2026 | 500,000 | 450,940 | 457,177 | ||||||||||||||
Newhaven CLO Ltd.+^ |
5.19 | # | 11/15/2028 | 500,000 | 619,360 | 537,954 | ||||||||||||||
Oak Hill Credit Partners X Ltd.^ |
Zero Coupon | 7/20/2026 | 500,000 | 449,138 | 384,808 | |||||||||||||||
OHA Credit Partners IX Ltd.^ |
5.28 | # | 10/20/2025 | 500,000 | 468,255 | 472,566 | ||||||||||||||
Pinnacle Park CLO Ltd.^ |
5.20 | # | 4/15/2026 | 500,000 | 469,792 | 465,909 | ||||||||||||||
Seneca Park CLO Ltd.^ |
4.96 | # | 7/17/2026 | 1,020,000 | 927,562 | 935,585 | ||||||||||||||
Silver Spring CLO Ltd.^ |
5.16 | # | 10/15/2026 | 1,000,000 | 904,874 | 861,314 | ||||||||||||||
Tryon Park CLO Ltd.^ |
4.65 | # | 7/15/2025 | 500,000 | 463,736 | 456,584 | ||||||||||||||
Voya CLO 2013-2 Ltd.^ |
5.76 | # | 4/25/2025 | 500,000 | 466,449 | 429,757 | ||||||||||||||
Voya CLO 2013-3 Ltd.^ |
4.76 | # | 1/18/2026 | 750,000 | 675,717 | 675,579 | ||||||||||||||
Voya CLO 2014-3 Ltd.^ |
5.28 | # | 7/25/2026 | 500,000 | 457,168 | 462,406 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total CDO/CLO |
|
15,070,000 | 13,972,725 | 13,514,752 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Asset-Backed Securities |
|
15,070,000 | 13,972,725 | 13,514,752 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Bank Loans 28.9%*§: |
| |||||||||||||||||||
Automobile 1.0%*: |
| |||||||||||||||||||
RAC Finance (Holdings) Ltd.+ |
8.25 | 12/17/2022 | 500,000 | 791,319 | 790,048 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Beverage, Food and Tobacco 1.0%*: |
| |||||||||||||||||||
Deoleo SA+ |
4.50 | 6/11/2021 | 500,000 | 552,606 | 541,098 | |||||||||||||||
Telepizza SA+ |
7.00 | 10/20/2020 | 250,000 | 315,291 | 277,608 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Beverage, Food and Tobacco |
|
750,000 | 867,897 | 818,706 | ||||||||||||||||
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
34
Babson Global Credit Income Opportunities Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Bank Loans (Continued) |
| |||||||||||||||||||
Broadcasting and Entertainment 0.9%*: |
| |||||||||||||||||||
All3Media International+ |
5.25 | % | 6/30/2021 | 500,000 | $834,051 | $779,175 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Buildings and Real Estate 0.4%*: |
| |||||||||||||||||||
Alison Bidco Sarl+ |
5.50 | 8/29/2021 | 147,514 | 146,209 | 142,720 | |||||||||||||||
Jeld-Wen, Inc. |
5.25 | 10/15/2021 | 218,418 | 216,448 | 218,828 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Buildings and Real Estate |
|
365,932 | 362,657 | 361,548 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Cargo Transport 0.9%*: |
| |||||||||||||||||||
Direct ChassisLink, Inc.¤ |
8.25 | 11/12/2019 | 492,857 | 487,416 | 483,000 | |||||||||||||||
Direct ChassisLink, Inc. (Add-On Facility)¤ |
8.25 | 11/12/2019 | 251,587 | 251,587 | 246,555 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Cargo Transport |
|
744,444 | 739,003 | 729,555 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Chemicals, Plastics and Rubber 1.3%*: |
| |||||||||||||||||||
Methanol Holdings (Trinidad) Ltd. |
4.25 | 6/2/2022 | 352,490 | 348,965 | 348,965 | |||||||||||||||
Styrolution Group GmbH+ |
6.50 | 11/7/2019 | 497,500 | 612,246 | 556,890 | |||||||||||||||
Univar, Inc. |
4.50 | 6/30/2022 | 150,675 | 149,922 | 150,440 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Chemicals, Plastics and Rubber |
|
1,000,665 | 1,111,133 | 1,056,295 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Containers, Packaging and Glass 1.3%*: |
| |||||||||||||||||||
Consolidated Container Co. LLC |
7.75 | 1/3/2020 | 94,140 | 92,599 | 87,550 | |||||||||||||||
Coveris |
4.50 | 5/8/2019 | 492,500 | 677,167 | 549,063 | |||||||||||||||
Hilex Poly Co. LLC |
6.00 | 12/5/2021 | 191,958 | 190,183 | 192,999 | |||||||||||||||
Onex Wizard US Acquisition, Inc.+ |
4.25 | 3/13/2022 | 210,395 | 209,386 | 210,027 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Containers, Packaging and Glass |
|
988,993 | 1,169,335 | 1,039,639 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Diversified/Conglomerate Manufacturing 1.3%*: |
| |||||||||||||||||||
Capital Safety North America Holdings, Inc. |
3.75 | 3/29/2021 | 485,750 | 484,103 | 484,332 | |||||||||||||||
Capital Safety North America Holdings, Inc. |
6.50 | 3/28/2022 | 125,831 | 125,696 | 126,774 | |||||||||||||||
Quality Home Brands Holdings LLC |
7.75 | 5/25/2018 | 129,859 | 128,995 | 130,021 | |||||||||||||||
West Corp. |
2.53 | 7/1/2019 | 366,003 | 354,581 | 355,023 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Diversified/Conglomerate Manufacturing |
|
1,107,443 | 1,093,375 | 1,096,150 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Diversified/Conglomerate Service 2.7%*: |
| |||||||||||||||||||
Aquilex Holdings LLC |
5.00 | 12/31/2020 | 98,570 | 98,374 | 98,324 | |||||||||||||||
Atrium Innovations, Inc.+ |
4.25 | 2/13/2021 | 464,051 | 462,647 | 450,129 | |||||||||||||||
MH Sub I LLC |
4.75 | 7/8/2021 | 182,552 | 181,646 | 182,039 | |||||||||||||||
MH Sub I LLC |
8.50 | 7/8/2022 | 150,000 | 148,679 | 147,750 | |||||||||||||||
Power Team Services LLC |
8.25 | 11/6/2020 | 300,000 | 298,816 | 295,500 | |||||||||||||||
RP Crown Parent LLC |
6.00 | 12/21/2018 | 548,203 | 549,858 | 525,934 | |||||||||||||||
RP Crown Parent LLC |
11.25 | 12/20/2019 | 178,571 | 183,005 | 163,616 | |||||||||||||||
Triple Point Technology, Inc. |
5.25 | 7/10/2020 | 341,331 | 316,095 | 306,345 | |||||||||||||||
Triple Point Technology, Inc. |
9.25 | 7/10/2021 | 50,846 | 47,339 | 42,710 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Diversified/Conglomerate Service |
|
2,314,124 | 2,286,459 | 2,212,347 | ||||||||||||||||
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
35
Babson Global Credit Income Opportunities Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Bank Loans (Continued) |
| |||||||||||||||||||
Ecological 0.2%*: |
| |||||||||||||||||||
Emerald 3 Ltd.+ |
8.00 | % | 5/31/2022 | 196,488 | $194,751 | $195,997 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Electronics 0.2%*: |
| |||||||||||||||||||
SS&C Technologies, Inc. |
4.00 | 6/23/2022 | 31,918 | 31,759 | 31,899 | |||||||||||||||
SS&C Technologies, Inc. |
4.00 | 6/23/2022 | 141,686 | 140,977 | 141,598 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Electronics |
|
173,604 | 172,736 | 173,497 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Finance 2.3%*: |
| |||||||||||||||||||
AssuredPartners Capital, Inc. |
7.75 | 4/2/2022 | 68,261 | 67,681 | 67,151 | |||||||||||||||
Confie Seguros Holdings II Co. |
5.75 | 11/9/2018 | 224,949 | 224,205 | 224,854 | |||||||||||||||
First Data Corp. |
3.94 | 6/23/2022 | 246,959 | 245,725 | 245,725 | |||||||||||||||
Intertrust Group Holding B.V.+ |
8.00 | 4/16/2022 | 96,225 | 95,607 | 95,696 | |||||||||||||||
Moneygram International, Inc. |
4.25 | 3/27/2020 | 639,168 | 602,919 | 606,679 | |||||||||||||||
P2 Newco Acquisition, Inc. |
9.50 | 10/22/2021 | 103,373 | 102,554 | 102,856 | |||||||||||||||
Sedgwick, Inc. |
3.75 | 3/1/2021 | 294,918 | 294,320 | 289,967 | |||||||||||||||
VFH Parent LLC |
5.25 | 11/6/2019 | 213,434 | 212,547 | 213,968 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Finance |
|
1,887,287 | 1,845,558 | 1,846,896 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Healthcare, Education and Childcare 1.8%*: |
| |||||||||||||||||||
Endo Luxembourg Finance Co. I Sarl |
3.75 | 6/11/2022 | 164,854 | 164,442 | 165,164 | |||||||||||||||
RPI Finance Trust |
3.50 | 11/9/2020 | 227,537 | 227,537 | 227,678 | |||||||||||||||
Synarc-Biocore Holdings LLC |
5.50 | 3/10/2021 | 395,870 | 392,633 | 385,973 | |||||||||||||||
Synarc-Biocore Holdings LLC |
9.25 | 3/10/2022 | 500,000 | 495,798 | 455,000 | |||||||||||||||
Tecomet, Inc. |
5.75 | 12/5/2021 | 208,807 | 202,982 | 205,414 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Healthcare, Education and Childcare |
1,497,068 | 1,483,392 | 1,439,229 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Leisure, Amusement, Entertainment 0.9%*: |
|
|||||||||||||||||||
AP NMT Acquisition B.V.+ |
7.00 | 8/13/2021 | 403,285 | 490,083 | 448,105 | |||||||||||||||
AP NMT Acquisition B.V.+ |
10.00 | 8/13/2022 | 300,000 | 278,490 | 287,625 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Leisure, Amusement, Entertainment |
703,285 | 768,573 | 735,730 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Machinery Non-Agriculture, Non-Construction, Non-Electronic 0.9%*: |
|
|||||||||||||||||||
Gardner Denver, Inc. |
4.25 | 7/30/2020 | 496,212 | 487,902 | 483,326 | |||||||||||||||
Husky Injection Molding Systems Ltd.+ |
7.25 | 6/30/2022 | 217,593 | 213,066 | 214,601 | |||||||||||||||
TCH-2 Holding LLC |
5.50 | 5/6/2021 | 54,086 | 53,631 | 53,883 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Machinery Non-Agriculture, Non-Construction, Non-Electronic |
767,891 | 754,599 | 751,810 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Mining, Steel, Iron and Non-Precious Metals 1.0%*: |
|
|||||||||||||||||||
Arch Coal, Inc. |
6.25 | 5/16/2018 | 742,364 | 733,523 | 505,275 | |||||||||||||||
Boomerang Tube LLC~ |
11.00 | 10/11/2017 | 249,123 | 245,561 | 125,807 | |||||||||||||||
Murray Energy Corp. |
7.50 | 4/16/2020 | 199,844 | 194,029 | 184,824 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Mining, Steel, Iron and Non-Precious Metals |
1,191,331 | 1,173,113 | 815,906 | |||||||||||||||||
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
36
Babson Global Credit Income Opportunities Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Bank Loans (Continued) |
| |||||||||||||||||||
Oil and Gas 3.3%*: |
|
|||||||||||||||||||
American EnergyMarcellus LLC |
8.50 | % | 8/4/2021 | 60,369 | $59,578 | $32,398 | ||||||||||||||
Caelus Energy Alaska O3 LLC |
8.75 | 4/15/2020 | 846,154 | 755,361 | 685,385 | |||||||||||||||
CITGO Holding, Inc. |
9.50 | 5/12/2018 | 138,565 | 131,183 | 138,843 | |||||||||||||||
Drillships Ocean Ventures, Inc. |
5.50 | 7/25/2021 | 126,663 | 125,559 | 107,505 | |||||||||||||||
Fieldwood Energy LLC |
8.38 | 9/30/2020 | 1,124,231 | 825,259 | 858,631 | |||||||||||||||
Floatel International Ltd. |
6.00 | 6/27/2020 | 203,234 | 201,520 | 160,555 | |||||||||||||||
Jonah Energy LLC |
7.50 | 5/12/2021 | 173,566 | 171,379 | 164,020 | |||||||||||||||
Paragon Offshore Finance Co.+ |
3.75 | 7/18/2021 | 482,303 | 375,222 | 349,670 | |||||||||||||||
Seadrill Partners Finco LLC |
4.00 | 2/21/2021 | 129,018 | 102,383 | 97,167 | |||||||||||||||
Southcross Holdings Borrower LP |
6.00 | 8/4/2021 | 72,979 | 72,660 | 70,790 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Oil and Gas |
3,357,082 | 2,820,104 | 2,664,964 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Printing and Publishing 1.7%*: |
|
|||||||||||||||||||
Cengage Learning Acquisitions, Inc. |
7.00 | 3/31/2020 | 548,865 | 546,243 | 548,865 | |||||||||||||||
Eden Bidco Ltd.+ |
6.00 | 4/28/2022 | 500,000 | 523,810 | 553,244 | |||||||||||||||
Houghton Mifflin Harcourt Publishing Co. |
4.00 | 5/31/2021 | 132,829 | 132,169 | 132,165 | |||||||||||||||
R.H. Donnelley, Inc. |
9.75 | 12/31/2016 | 103,399 | 82,095 | 51,010 | |||||||||||||||
SuperMedia, Inc. |
11.60 | 12/30/2016 | 225,663 | 196,485 | 133,705 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Printing and Publishing |
1,510,756 | 1,480,802 | 1,418,989 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Retail Stores 2.0%*: |
|
|||||||||||||||||||
Bass Pro Group LLC |
4.00 | 6/5/2020 | 179,357 | 178,911 | 179,166 | |||||||||||||||
J. Crew Group, Inc. |
4.00 | 3/5/2021 | 498,741 | 468,144 | 429,261 | |||||||||||||||
Maxeda DIY B.V.+ |
5.28 | 6/29/2017 | 500,000 | 556,683 | 529,932 | |||||||||||||||
Maxeda DIY B.V.+ |
8.50 | 6/30/2018 | 602,231 | 724,213 | 369,268 | |||||||||||||||
Staples, Inc. |
3.50 | 4/7/2021 | 163,843 | 163,023 | 163,468 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Retail Stores |
1,944,172 | 2,090,974 | 1,671,095 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Telecommunications 3.3%*: |
|
|||||||||||||||||||
Altice Financing SA+ |
5.50 | 7/2/2019 | 759,115 | 760,003 | 764,619 | |||||||||||||||
Eircom Finco Sarl+ |
4.78 | 9/30/2019 | 494,160 | 657,581 | 539,107 | |||||||||||||||
ION Trading Technologies Ltd. |
1.00 | 6/16/2021 | 349,059 | 345,569 | 345,569 | |||||||||||||||
ION Trading Technologies Sarl+ |
7.25 | 6/10/2022 | 894,762 | 888,780 | 892,525 | |||||||||||||||
SBA Senior Finance II LLC |
3.25 | 6/1/2022 | 137,594 | 136,221 | 135,961 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Telecommunications |
2,634,690 | 2,788,154 | 2,677,781 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Utilities 0.5%*: |
| |||||||||||||||||||
Texas Competitive Electric Holdings Co. LLC |
4.67 | 10/10/2017 | 650,000 | 533,851 | 372,645 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Bank Loans |
24,785,255 | 25,361,836 | 23,648,002 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Corporate Bonds 46.5%*: |
||||||||||||||||||||
Aerospace and Defense 0.9%*: |
| |||||||||||||||||||
CPI International, Inc. |
8.75 | 2/15/2018 | 387,000 | 396,756 | 395,707 | |||||||||||||||
TransDigm, Inc. |
6.50 | 7/15/2024 | 315,000 | 315,000 | 311,063 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Aerospace and Defense |
702,000 | 711,756 | 706,770 | |||||||||||||||||
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
37
Babson Global Credit Income Opportunities Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Corporate Bonds (Continued) |
| |||||||||||||||||||
Automobile 3.1%*: |
| |||||||||||||||||||
Allied Specialty Vehicles, Inc.^ |
8.50 | % | 11/1/2019 | 1,000,000 | $1,028,015 | $1,040,000 | ||||||||||||||
International Automotive Components Group SA^ |
9.13 | 6/1/2018 | 940,000 | 963,841 | 958,800 | |||||||||||||||
JB Poindexter & Co., Inc.^ |
9.00 | 4/1/2022 | 500,000 | 524,251 | 535,000 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Automobile |
2,440,000 | 2,516,107 | 2,533,800 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Banking 0.4%*: |
| |||||||||||||||||||
Lock AS+ |
7.00 | 8/15/2021 | 250,000 | 335,562 | 294,041 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Beverage, Food and Tobacco 1.2%*: |
| |||||||||||||||||||
Dean Foods Co.^ |
6.50 | 3/15/2023 | 291,000 | 291,000 | 296,820 | |||||||||||||||
EWOS Holding AS+ |
6.75 | 11/1/2020 | 200,000 | 273,839 | 221,298 | |||||||||||||||
Findus Bondco SA+ |
9.13 | 7/1/2018 | 200,000 | 291,224 | 233,561 | |||||||||||||||
Twinkle Pizza PLC+ |
6.63 | 8/1/2021 | 150,000 | 254,595 | 243,276 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Beverage, Food and Tobacco |
841,000 | 1,110,658 | 994,955 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Broadcasting and Entertainment 3.3%*: |
| |||||||||||||||||||
Harron Communications LP/Harron Finance Corp.^ |
9.13 | 4/1/2020 | 500,000 | 541,099 | 540,625 | |||||||||||||||
RCN Telecom Services LLC/RCN Capital Corp.^ |
8.50 | 8/15/2020 | 775,000 | 777,921 | 811,813 | |||||||||||||||
Sirius XM Radio, Inc.^ |
5.38 | 4/15/2025 | 959,000 | 959,000 | 925,435 | |||||||||||||||
Unitymedia GmbH+ |
3.75 | 1/15/2027 | 300,000 | 335,460 | 322,749 | |||||||||||||||
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH+ |
6.25 | 1/15/2029 | 100,000 | 133,825 | 125,281 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Broadcasting and Entertainment |
2,634,000 | 2,747,305 | 2,725,903 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Buildings and Real Estate 1.5%*: |
| |||||||||||||||||||
Deutsche Raststaetten Gruppe IV GmbH+ |
6.75 | 12/30/2020 | 100,000 | 135,605 | 119,289 | |||||||||||||||
Keystone Financing PLC+ |
9.50 | 10/15/2019 | 350,000 | 563,603 | 576,747 | |||||||||||||||
Paroc Group Oy+ |
5.24 | # | 5/15/2020 | 100,000 | 137,565 | 105,799 | ||||||||||||||
Paroc Group Oy+ |
6.25 | 5/15/2020 | 100,000 | 137,565 | 109,556 | |||||||||||||||
Roofing Supply Group LLC/Roofing Supply Finance, Inc.^ |
10.00 | 6/1/2020 | 271,000 | 290,623 | 277,098 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Buildings and Real Estate |
921,000 | 1,264,961 | 1,188,489 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Cargo Transport 1.9%*: |
| |||||||||||||||||||
Kenan Advantage Group, Inc. (The)^ |
8.38 | 12/15/2018 | 1,000,000 | 1,037,765 | 1,041,250 | |||||||||||||||
Moto Finance PLC+ |
6.38 | 9/1/2020 | 200,000 | 301,036 | 320,535 | |||||||||||||||
WFS Global Holding SAS+ |
9.50 | 7/15/2022 | 150,000 | 170,153 | 168,900 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Cargo Transport |
1,350,000 | 1,508,954 | 1,530,685 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Chemicals, Plastics and Rubber 2.4%*: |
| |||||||||||||||||||
A. Schulman, Inc.^ |
6.88 | 6/1/2023 | 257,000 | 257,000 | 262,140 | |||||||||||||||
Ineos Finance PLC+ |
4.00 | 5/1/2023 | 400,000 | 433,020 | 423,679 |
See accompanying Notes to Financial Statements.
38
Babson Global Credit Income Opportunities Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Corporate Bonds (Continued) |
| |||||||||||||||||||
Chemicals, Plastics and Rubber (Continued) |
| |||||||||||||||||||
Monitchem HoldCo 3 SA+ |
5.25 | % | 6/15/2021 | 150,000 | $183,938 | $168,080 | ||||||||||||||
OMNOVA Solutions, Inc. |
7.88 | 11/1/2018 | 500,000 | 513,853 | 500,000 | |||||||||||||||
Pinnacle Operating Corp.^ |
9.00 | 11/15/2020 | 600,000 | 615,682 | 595,500 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Chemicals, Plastics and Rubber |
1,907,000 | 2,003,493 | 1,949,399 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Containers, Packaging and Glass 3.3%*: |
|
|||||||||||||||||||
Ardagh Finance Holdings SA PIK^ |
8.63 | 6/15/2019 | 359,323 | 356,604 | 371,899 | |||||||||||||||
Coveris Holdings SA^ |
7.88 | 11/1/2019 | 900,000 | 903,112 | 895,500 | |||||||||||||||
Innovia Group Finance PLC+ |
4.99 | # | 3/31/2020 | 100,000 | 136,098 | 110,593 | ||||||||||||||
Mustang Merger Corp.^ |
8.50 | 8/15/2021 | 750,000 | 746,116 | 761,250 | |||||||||||||||
ProGroup AG+ |
5.13 | 5/1/2022 | 100,000 | 108,255 | 113,715 | |||||||||||||||
SIG Combibloc Holdings SCA+ |
7.75 | 2/15/2023 | 400,000 | 459,340 | 464,090 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Containers, Packaging and Glass |
2,609,323 | 2,709,525 | 2,717,047 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Diversified Natural Resources, Precious Metals and Minerals 0.1%*: |
|
|||||||||||||||||||
Cemex SAB de CV+ |
4.38 | 3/5/2023 | 100,000 | 111,980 | 107,165 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Diversified/Conglomerate Manufacturing 1.5%*: |
|
|||||||||||||||||||
Appvion, Inc.^ |
9.00 | 6/1/2020 | 500,000 | 512,945 | 315,000 | |||||||||||||||
CTP Transportation Products LLC/CTP Finance, Inc.^ |
8.25 | 12/15/2019 | 448,000 | 458,465 | 463,680 | |||||||||||||||
Galapagos SA+ |
5.38 | 6/15/2021 | 175,000 | 219,269 | 195,512 | |||||||||||||||
West Corp.^ |
5.38 | 7/15/2022 | 250,000 | 238,217 | 233,750 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Diversified/Conglomerate Manufacturing |
|
1,373,000 | 1,428,896 | 1,207,942 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Diversified/Conglomerate Service 1.3%*: |
|
|||||||||||||||||||
Carlson Travel Holdings, Inc. PIK^ |
7.50 | 8/15/2019 | 665,000 | 674,250 | 674,975 | |||||||||||||||
Zachry Holdings, Inc.^ |
7.50 | 2/1/2020 | 391,000 | 392,460 | 389,045 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Diversified/Conglomerate Service |
1,056,000 | 1,066,710 | 1,064,020 | |||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Electronics 0.2%*: |
|
|||||||||||||||||||
SS&C Technologies Holdings, Inc.^ |
5.88 | 7/15/2023 | 166,000 | 166,000 | 167,660 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Finance 2.4%*: |
|
|||||||||||||||||||
Arrow Global Finance PLC+ |
5.24 | # | 11/1/2021 | 100,000 | 123,118 | 112,265 | ||||||||||||||
Cabot Financial Luxembourg SA+ |
10.38 | 10/1/2019 | 100,000 | 173,823 | 170,984 | |||||||||||||||
Equiniti Newco 2 PLC+ |
7.13 | 12/15/2018 | 200,000 | 314,474 | 315,821 | |||||||||||||||
Galaxy Bidco Ltd.+ |
6.38 | 11/15/2020 | 100,000 | 161,665 | 157,321 | |||||||||||||||
Galaxy Finco Ltd.+ |
7.88 | 11/15/2021 | 100,000 | 165,396 | 155,213 | |||||||||||||||
Lowell Group Financing PLC+ |
5.88 | 4/1/2019 | 100,000 | 166,730 | 152,443 | |||||||||||||||
National Financial Partners Corp.^ |
9.00 | 7/15/2021 | 279,000 | 277,628 | 275,513 | |||||||||||||||
TMF Group Holding B.V.+ |
9.88 | 12/1/2019 | 500,000 | 717,174 | 595,374 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Finance |
1,479,000 | 2,100,008 | 1,934,934 | |||||||||||||||||
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
39
Babson Global Credit Income Opportunities Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Corporate Bonds (Continued) |
| |||||||||||||||||||
Grocery 0.4%*: |
|
|||||||||||||||||||
Premier Foods PLC+ |
6.50 | % | 3/15/2021 | 200,000 | $339,387 | $295,709 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Healthcare, Education and Childcare 5.5%*: |
|
|||||||||||||||||||
Alere, Inc.^ |
6.38 | 7/1/2023 | 490,000 | 490,000 | 498,575 | |||||||||||||||
BioScrip, Inc. |
8.88 | 2/15/2021 | 410,000 | 423,779 | 348,500 | |||||||||||||||
Care UK Health & Social Care PLC+ |
5.57 | # | 7/15/2019 | 100,000 | 152,699 | 152,411 | ||||||||||||||
Cerberus Nightingale 1 Sarl+ |
8.25 | 2/1/2020 | 300,000 | 342,042 | 339,472 | |||||||||||||||
HomeVi SAS+ |
6.88 | 8/15/2021 | 250,000 | 334,500 | 291,673 | |||||||||||||||
Priory Group No. 3 PLC+ |
8.88 | 2/15/2019 | 500,000 | 806,718 | 813,122 | |||||||||||||||
Surgical Care Affiliates, Inc.^ |
6.00 | 4/1/2023 | 406,000 | 406,000 | 406,000 | |||||||||||||||
Tenet Healthcare Corp.^ |
3.79 | # | 6/15/2020 | 750,000 | 746,278 | 756,562 | ||||||||||||||
Tenet Healthcare Corp.^ |
6.75 | 6/15/2023 | 294,000 | 292,536 | 299,880 | |||||||||||||||
Unilabs Subholding AB+ |
8.50 | 7/15/2018 | 200,000 | 284,664 | 231,220 | |||||||||||||||
VRX Escrow Corp.^ |
6.13 | 4/15/2025 | 339,000 | 339,000 | 348,746 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Healthcare, Education and Childcare |
|
4,039,000 | 4,618,216 | 4,486,161 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Hotels, Motels, Inns and Gaming 0.2%*: |
| |||||||||||||||||||
Gala Electric Casinos PLC+ |
11.50 | 6/1/2019 | 100,000 | 176,735 | 167,102 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Insurance 0.7%*: |
| |||||||||||||||||||
Hastings Insurance Group Finance PLC+ |
8.00 | 10/21/2020 | 100,000 | 159,915 | 166,523 | |||||||||||||||
TIG Finco PLC+ |
8.50 | # | 3/2/2020 | 15,734 | 25,272 | 25,958 | ||||||||||||||
TIG Finco PLC+^ |
8.75 | 4/2/2020 | 266,163 | 409,278 | 414,027 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Insurance |
|
381,897 | 594,465 | 606,508 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Leisure, Amusement, Entertainment 2.7%*: |
| |||||||||||||||||||
Allegiant Travel Co. |
5.50 | 7/15/2019 | 700,000 | 718,326 | 705,250 | |||||||||||||||
Dometic Group AB PIK+ |
9.50 | 6/26/2019 | 500,000 | 679,476 | 560,212 | |||||||||||||||
Interval Acquisition Corp.^ |
5.63 | 4/15/2023 | 459,000 | 459,000 | 464,738 | |||||||||||||||
Vougeot Bidco PLC+ |
7.88 | 7/15/2020 | 300,000 | 510,665 | 499,676 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Leisure, Amusement, Entertainment |
|
1,959,000 | 2,367,467 | 2,229,876 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Machinery Non-Agriculture, Non-Construction, Non-Electronic 1.1%*: |
| |||||||||||||||||||
KraussMaffei Group GmbH+ |
8.75 | 12/15/2020 | 90,000 | 129,685 | 107,360 | |||||||||||||||
Xerium Technologies, Inc. |
8.88 | 6/15/2018 | 720,000 | 737,219 | 745,200 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Machinery Non-Agriculture, Non-Construction, Non-Electronic |
|
810,000 | 866,904 | 852,560 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Mining, Steel, Iron and Non-Precious Metals 0.5%*: |
| |||||||||||||||||||
Constellium NV |
7.00 | 1/15/2023 | 250,000 | 307,212 | 278,713 | |||||||||||||||
Paprec Holding+ |
5.25 | 4/1/2022 | 100,000 | 108,105 | 113,993 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Mining, Steel, Iron and Non-Precious Metals |
|
350,000 | 415,317 | 392,706 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Oil and Gas 4.5%*: |
| |||||||||||||||||||
Baytex Energy Corp.+^ |
5.63 | 6/1/2024 | 350,000 | 286,996 | 324,625 | |||||||||||||||
California Resources Corp. |
6.00 | 11/15/2024 | 400,000 | 400,000 | 344,000 |
See accompanying Notes to Financial Statements.
40
Babson Global Credit Income Opportunities Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Corporate Bonds (Continued) |
| |||||||||||||||||||
Oil and Gas (Continued) |
| |||||||||||||||||||
Calumet Specialty Products Partners LP/Calumet Finance Corp. |
6.50 | % | 4/15/2021 | 500,000 | $500,000 | $492,500 | ||||||||||||||
Citgo Holding, Inc.^ |
10.75 | 2/15/2020 | 350,000 | 338,439 | 357,875 | |||||||||||||||
Halcon Resources Corp.^ |
8.63 | 2/1/2020 | 331,000 | 331,000 | 326,863 | |||||||||||||||
Kosmos Energy Ltd.^ |
7.88 | 8/1/2021 | 571,000 | 526,550 | 552,442 | |||||||||||||||
Millennium Offshore Services Superholdings LLC+^ |
9.50 | 2/15/2018 | 500,000 | 516,870 | 467,500 | |||||||||||||||
Seventy Seven Energy, Inc. |
6.50 | 7/15/2022 | 440,000 | 440,000 | 281,600 | |||||||||||||||
Shelf Drilling Holdings Ltd.+^ |
8.63 | 11/1/2018 | 439,000 | 361,973 | 390,710 | |||||||||||||||
Welltec A/S+^ |
8.00 | 2/1/2019 | 174,000 | 145,412 | 166,170 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Oil and Gas |
|
4,055,000 | 3,847,240 | 3,704,285 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Personal Transportation 0.3%*: |
| |||||||||||||||||||
AA Bond Co. Ltd.+ |
5.50 | 7/31/2043 | 150,000 | 223,140 | 234,273 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Personal, Food and Miscellaneous 1.5%*: |
| |||||||||||||||||||
Brakes Capital+ |
7.13 | 12/15/2018 | 500,000 | 842,431 | 805,297 | |||||||||||||||
TeamSystem Holding SpA+ |
7.38 | 5/15/2020 | 350,000 | 476,299 | 413,414 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Personal, Food and Miscellaneous |
|
850,000 | 1,318,730 | 1,218,711 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Printing and Publishing 0.3%*: |
| |||||||||||||||||||
CEB, Inc.^ |
5.63 | 6/15/2023 | 273,000 | 273,000 | 274,365 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Retail Stores 2.7%*: |
| |||||||||||||||||||
Boing Group Financing PLC+ |
6.63 | 7/15/2019 | 200,000 | 272,200 | 215,830 | |||||||||||||||
Brighthouse Group PLC+ |
7.88 | 5/15/2018 | 150,000 | 243,459 | 230,974 | |||||||||||||||
Family Tree Escrow LLC^ |
5.25 | 3/1/2020 | 50,000 | 51,406 | 52,312 | |||||||||||||||
Family Tree Escrow LLC^ |
5.75 | 3/1/2023 | 700,000 | 722,747 | 731,500 | |||||||||||||||
HSS Financing PLC+ |
6.75 | 8/1/2019 | 65,774 | 108,872 | 107,998 | |||||||||||||||
Kirk Beauty Zero GmbH+ |
6.25 | 7/15/2022 | 550,000 | 614,378 | 604,767 | |||||||||||||||
Pendragon PLC+ |
6.88 | 5/1/2020 | 100,000 | 171,016 | 165,613 | |||||||||||||||
Takko Luxembourg 2 S.C.A.+ |
9.88 | 4/15/2019 | 200,000 | 258,634 | 102,789 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Retail Stores |
|
2,015,774 | 2,442,712 | 2,211,783 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Telecommunications 2.6%*: |
||||||||||||||||||||
Altice US Finance I Corp.^ |
5.38 | 7/15/2023 | 341,000 | 341,000 | 332,475 | |||||||||||||||
CCO Holdings LLC/CCO Holdings Capital Corp.^ |
5.88 | 5/1/2027 | 391,000 | 391,000 | 381,714 | |||||||||||||||
CommScope Technologies Finance LLC^ |
6.00 | 6/15/2025 | 338,000 | 338,000 | 336,732 | |||||||||||||||
eircom Finance Ltd.+ |
9.25 | 5/15/2020 | 100,000 | 147,539 | 120,961 | |||||||||||||||
Numericable-SFR+ |
5.63 | 5/15/2024 | 100,000 | 138,165 | 112,321 | |||||||||||||||
Numericable-SFR+^ |
6.00 | 5/15/2022 | 315,000 | 315,000 | 310,472 | |||||||||||||||
UPC Holding B.V.+ |
6.75 | 3/15/2023 | 200,000 | 213,359 | 231,831 | |||||||||||||||
Wind Acquisition Finance SA+ |
4.00 | 7/15/2020 | 200,000 | 243,426 | 222,412 |
See accompanying Notes to Financial Statements.
41
Babson Global Credit Income Opportunities Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Corporate Bonds (Continued) |
| |||||||||||||||||||
Telecommunications (Continued) |
| |||||||||||||||||||
Wind Acquisition Finance SA+ |
4.01 | #% | 7/15/2020 | 100,000 | $135,965 | $110,649 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Telecommunications |
|
2,085,000 | 2,263,454 | 2,159,567 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Corporate Bonds |
|
35,096,994 | 39,528,682 | 37,956,416 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Fixed Income |
|
74,952,249 | 78,863,243 | 75,119,170 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
STRIKE PRICE |
EXPIRATION DATE |
NOTIONAL | COST | FAIR VALUE |
||||||||||||||||
Purchased Options 0.7%*: |
| |||||||||||||||||||
Put Options 0.7%*: |
| |||||||||||||||||||
OTCMarkit CDX.NA.HY.24 Swaption with Credit Suisse International |
$105.00 | 09/16/2015 | 20,000,000 | 446,000 | 415,368 | |||||||||||||||
OTCMarkit CDX.NA.HY.24 Swaption with JPMorgan Chase Bank, N.A. |
105.00 | 09/16/2015 | 10,000,000 | 172,000 | 172,459 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Purchased Options |
|
30,000,000 | 618,000 | 587,827 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
EFFECTIVE INTEREST RATE |
DUE DATE | PRINCIPAL | COST | FAIR VALUE |
||||||||||||||||
Short-Term Investments 9.5%*: |
| |||||||||||||||||||
Bank Deposit 9.4%*: |
| |||||||||||||||||||
State Street Bank & Trust Co. Euro Time Deposit |
0.01 | % | 7/1/2015 | 7,653,249 | 7,653,249 | 7,653,249 | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Bank Loan 0.1%*§: |
| |||||||||||||||||||
Mining, Steel, Iron and Non-Precious Metals 0.1%*: |
| |||||||||||||||||||
Boomerang Tube LLC¤ |
11.28 | 10/7/2015 | 78,780 | 77,204 | 78,780 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Short-Term Investments |
|
7,732,029 | 7,730,453 | 7,732,029 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total Investments |
|
112,684,278 | 87,211,696 | 83,439,026 | ||||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Other assets and liabilities (2.1%)* |
(1,706,397 | ) | ||||||||||||||||||
Net Assets 100.0% |
$81,732,629 | |||||||||||||||||||
|
|
OTC | Over the Counter |
PIK | Payment-in-kind |
| Unless otherwise indicated, all principal amounts are denominated in United States Dollars. |
* | Calculated as a percentage of net assets applicable to common shareholders. |
+ | Foreign security. |
See accompanying Notes to Financial Statements.
42
Babson Global Credit Income Opportunities Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
Distributions of investments by country of risk (excluding temporary cash investments) as a percentage of total investments in securities, is as follows:
United States | 49.2% | |||||
Cayman Islands | 17.3% | |||||
United Kingdom | 13.8% | |||||
Germany | 3.4% | |||||
Netherlands | 3.1% | |||||
France | 1.8% | |||||
Switzerland | 1.8% | |||||
Ireland | 1.6% | |||||
Canada | 1.3% | |||||
United Arab Emirates | 1.1% | |||||
Spain | 1.1% | |||||
Sweden | 1.1% | |||||
Portugal | 1.0% | |||||
Italy | 1.0% | |||||
Other (Individually less than 1%) | 1.4% | |||||
|
|
|||||
Total | 100.0% | |||||
|
|
^ | Security acquired in a transaction 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. |
§ | 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, 2015. 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. |
¤ | For fair value measurement disclosure purposes, security is categorized as Level 3 (see Note 2). |
| Illiquid security. |
~ | Defaulted security. |
# | Variable rate security. The interest rate shown is the rate in effect at June 30, 2015. |
A summary of outstanding derivatives at June 30, 2015 is as follows:
Forward Foreign Currency Exchange Contracts to Buy
EXPIRATION DATE |
COUNTERPARTY | LOCAL CURRENCY |
VALUE IN USD | IN EXCHANGE FOR USD |
NET UNREALIZED DEPRECIATION |
|||||||||||||||||
07/14/15 | Morgan Stanley |
EUR | 540,000 | 602,116 | 607,260 | $ | (5,144 | ) | ||||||||||||||
07/14/15 | Morgan Stanley |
GBP | 500,000 | 785,559 | 786,918 | (1,359 | ) | |||||||||||||||
|
|
|||||||||||||||||||||
Net unrealized depreciation on forward foreign exchange contracts to buy |
|
$ | (6,503 | ) | ||||||||||||||||||
|
|
See accompanying Notes to Financial Statements.
43
Babson Global Credit Income Opportunities Fund 2015 Annual Report
SCHEDULE OF INVESTMENTS (CONTINUED)
June 30, 2015
Forward Foreign Currency Exchange Contracts to Sell
EXPIRATION DATE |
COUNTERPARTY | LOCAL CURRENCY |
VALUE IN USD | IN EXCHANGE FOR USD |
NET UNREALIZED APPRECIATION (DEPRECIATION) |
|||||||||||||||||
07/14/15 | Morgan Stanley |
CHF | 230,728 | 246,885 | 247,564 | $ | 679 | |||||||||||||||
07/14/15 | Morgan Stanley |
EUR | 11,320,994 | 12,623,243 | 12,721,503 | 98,260 | ||||||||||||||||
07/14/15 | Morgan Stanley |
GBP | 5,547,959 | 8,716,498 | 8,480,430 | (236,068 | ) | |||||||||||||||
|
|
|||||||||||||||||||||
Net unrealized depreciation on forward foreign exchange contracts to sell |
|
$ | (137,129 | ) | ||||||||||||||||||
|
|
Currency Legend
CHF | | Swiss Franc | ||
EUR | | Euro | ||
GBP | | British Pound Sterling |
Written Options
TYPE OF CONTRACT | EXPIRATION DATE |
STRIKE PRICE |
COUNTERPARTY | NUMBER OF CONTRACTS/ NOTIONAL AMOUNTS |
PREMIUMS RECEIVED |
VALUE AT JUNE 30, 2015 |
||||||||||||||
PutMarkit CDX.NA.HY.24 Swaption |
09/16/15 | $ | 102.25 | Credit Suisse International | 20,000,000 | $ | 278,000 | $ | (225,997 | ) | ||||||||||
PutMarkit CDX.NA.HY.24 Swaption |
09/16/15 | 102.25 | JPMorgan Chase Bank, N.A. | 10,000,000 | 104,000 | (93,480 | ) | |||||||||||||
|
|
|
|
|||||||||||||||||
$ | 382,000 | $ | (319,477 | ) | ||||||||||||||||
|
|
|
|
See accompanying Notes to Financial Statements.
44
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2015
45
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
46
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
47
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
The following is a summary of the inputs used as of June 30, 2015 in valuing the Funds investments:
Global | Floating Rate Fund |
DESCRIPTION | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL INVESTMENTS | ||||||||||||
Assets:* |
||||||||||||||||
Fixed Income: | ||||||||||||||||
Bank Loans |
$ | | $ | 131,795,771 | $ | 976,111 | $ | 132,771,882 | ||||||||
Corporate Bonds |
| 22,819,985 | | 22,819,985 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Fixed Income | | 154,615,756 | 976,111 | 155,591,867 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Short-Term Investments: | ||||||||||||||||
Bank Deposit |
| 23,274,995 | | 23,274,995 | ||||||||||||
Bank Loan |
| | 78,780 | 78,780 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Short-Term Investments | | 23,274,995 | 78,780 | 23,353,775 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Securities: | ||||||||||||||||
Forward Foreign Currency Exchange Contracts |
| 153,124 | | 153,124 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total | $ | | $ | 178,043,875 | $ | 1,054,891 | $ | 179,098,766 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities:* | ||||||||||||||||
Derivative Securities: | ||||||||||||||||
Forward Foreign Currency Exchange Contracts |
| (523,194 | ) | | (523,194 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments |
$ | | $ | 177,520,681 | $ | 1,054,891 | $ | 178,575,572 | ||||||||
|
|
|
|
|
|
|
|
* | There were no transfers between levels during the year ended June 30, 2015. |
The following is a reconciliation of investments with unobservable inputs (Level 3) that were used in determining fair value:
INVESTMENTS IN SECURITIES |
BALANCE AS OF JULY 1, 2014 |
REALIZED (LOSS) |
CHANGE IN UNREALIZED |
NET TRANSFERS IN (OUT) OF LEVEL 3 |
ACCRUED PREMIUMS/ |
PURCHASES | SALES | BALANCE AS OF |
CHANGE IN UNREALIZED |
|||||||||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||||||||||||||
Bank Loans |
$ | 497,619 | $ | 57 | $ | (19,651 | ) | $ | | $ | 1,249 | $ | 585,462 | $ | (9,845 | ) | $ | 1,054,891 | $ | (19,651 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total | $ | 497,619 | $ | 57 | $ | (19,651 | ) | $ | | $ | 1,249 | $ | 585,462 | $ | (9,845 | ) | $ | 1,054,891 | $ | (19,651 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
Global | Credit Income Opportunities Fund |
DESCRIPTION | LEVEL 1 | LEVEL 2 | LEVEL 3 | TOTAL INVESTMENTS | ||||||||||||
Assets:* | ||||||||||||||||
Fixed Income: | ||||||||||||||||
Asset-Backed Securities |
$ | | $ | 13,514,752 | $ | | $ | 13,514,752 | ||||||||
Bank Loans |
| 22,918,447 | 729,555 | 23,648,002 | ||||||||||||
Corporate Bonds |
| 37,956,416 | | 37,956,416 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Fixed Income | | 74,389,615 | 729,555 | 75,119,170 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Purchased Options: | ||||||||||||||||
Put Options |
| 587,827 | | 587,827 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Purchased Options | | 587,827 | | 587,827 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Short-Term Investments: | ||||||||||||||||
Bank Deposit |
| 7,653,249 | | 7,653,249 | ||||||||||||
Bank Loan |
| | 78,780 | 78,780 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Short-Term Investments | | 7,653,249 | 78,780 | 7,732,029 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative Securities: | ||||||||||||||||
Forward Foreign Currency Exchange Contracts |
| 98,939 | | 98,939 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total | $ | | $ | 82,729,630 | $ | 808,335 | $ | 83,537,965 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities:* | ||||||||||||||||
Derivative Securities: | ||||||||||||||||
Forward Foreign Currency Exchange Contracts |
| (242,571 | ) | | (242,571 | ) | ||||||||||
Written Options |
| (319,477 | ) | | (319,477 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Derivative Securities | | (562,048 | ) | | (562,048 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Investments |
$ | | $ | 82,167,582 | $ | 808,335 | $ | 82,975,917 | ||||||||
|
|
|
|
|
|
|
|
* | There were no transfers between levels during the year ended June 30, 2015. |
The following is a reconciliation of investments with unobservable inputs (Level 3) that were used in determining fair value:
INVESTMENTS IN SECURITIES |
BALANCE AS OF JULY 1, 2014 |
REALIZED (LOSS) |
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) |
NET TRANSFERS IN (OUT) OF LEVEL 3 |
ACCRUED PREMIUMS/ |
PURCHASES | SALES | BALANCE AS OF |
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT JUNE 30, 2015 |
|||||||||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||||||||||||||
Bank Loans |
$ | 497,619 | $ | 57 | $ | (14,619 | ) | $ | | $ | 1,248 | $ | 331,333 | $ | (7,303 | ) | $ | 808,335 | $ | (14,619 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total | $ | 497,619 | $ | 57 | $ | (14,619 | ) | $ | | $ | 1,248 | $ | 331,333 | $ | (7,303 | ) | $ | 808,335 | $ | (14,619 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
50
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
51
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
52
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
53
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
Global Credit Income Opportunities Fund
ASSET DERIVATIVES |
STATEMENTS OF ASSETS AND LIABILITIES LOCATION |
FOREIGN EXCHANGE CONTRACTS RISK |
CREDIT RISK |
TOTAL | ||||||||||
Forward Foreign Currency Exchange Contracts |
Unrealized appreciation on forward foreign currency exchange contracts |
$ | 98,939 | $ | | $ | 98,939 | |||||||
Purchased Options |
Investments, at fair value |
| 587,827 | 587,827 | ||||||||||
|
|
|
|
|
|
|||||||||
Total |
$ | 98,939 | $ | 587,827 | $ | 686,766 | ||||||||
|
|
|
|
|
|
|||||||||
LIABILITY DERIVATIVES |
STATEMENTS OF ASSETS AND LIABILITIES LOCATION |
FOREIGN EXCHANGE CONTRACTS RISK |
CREDIT RISK |
TOTAL | ||||||||||
Forward Foreign Currency Exchange Contracts |
Unrealized depreciation on forward foreign currency exchange contracts |
$ | 242,571 | $ | | $ | 242,571 | |||||||
Written Options |
Written options, at fair value |
| 319,477 | 319,477 | ||||||||||
|
|
|
|
|
|
|||||||||
Total |
$ | 242,571 | $ | 319,477 | $ | 562,048 | ||||||||
|
|
|
|
|
|
54
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
Global Credit Income Opportunities Fund
NUMBER OF CONTRACTS, NOTIONAL AMOUNTS OF SHARES/UNITS |
FOREIGN EXCHANGE CONTRACTS RISK |
CREDIT RISK | TOTAL | |||||||||
Forward Foreign Currency Exchange Contracts(1) |
26,141,491 | | 26,141,491 | |||||||||
Purchased Options(1) |
| 15,461,538 | 15,461,538 | |||||||||
Written Options(1) |
| (6,923,077 | ) | (6,923,077 | ) | |||||||
|
|
|
|
|
|
|||||||
Total |
26,141,491 | 8,538,461 | 34,679,952 | |||||||||
|
|
|
|
|
|
(1) | Volume of derivative activity is based on an average of month-end notional amounts outstanding during the period. |
55
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
The following tables illustrate gross and net information about recognized assets eligible for offset in the Statement of Assets and Liabilities; and disclose such amounts subject to an enforceable master netting agreement or similar agreement, by counterparty. A master netting agreement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as cash collateral, through a single payment in the event of default on or termination of any one contract:
Global Floating Rate Fund
DESCRIPTION | GROSS AMOUNTS OF RECOGNIZED ASSETS |
GROSS AMOUNTS OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES |
NET AMOUNTS OF ASSETS PRESENTED IN THE STATEMENTS OF ASSETS AND LIABILITIES |
|||||||||
Forward Foreign Currency Exchange Contracts |
$ | 153,124 | $ | | $ | 153,124 | ||||||
|
|
|
|
|
|
|||||||
Total |
$ | 153,124 | $ | | $ | 153,124 | ||||||
|
|
|
|
|
|
GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES |
||||||||||||||||
COUNTERPARTY | NET AMOUNTS OF ASSETS PRESENTED IN THE STATEMENTS OF ASSETS AND LIABILITIES |
FINANCIAL INSTRUMENT (a) |
CASH COLLATERAL RECEIVED (a) |
NET AMOUNT (b) |
||||||||||||
Morgan Stanley |
$ | 153,124 | $ | (153,124 | ) | $ | | $ | | |||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 153,124 | $ | (153,124 | ) | $ | | $ | | |||||||
|
|
|
|
|
|
|
|
(a) | Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty. |
(b) | Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2015. |
DESCRIPTION | GROSS AMOUNTS OF RECOGNIZED LIABILITIES |
GROSS AMOUNTS OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES |
NET AMOUNTS OF LIABILITIES PRESENTED IN THE STATEMENTS OF ASSETS AND LIABILITIES |
|||||||||
Forward Foreign Currency Exchange Contracts |
$ | 523,194 | $ | | $ | 523,194 | ||||||
|
|
|
|
|
|
|||||||
Total |
$ | 523,194 | $ | | $ | 523,194 | ||||||
|
|
|
|
|
|
GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES |
||||||||||||||||
COUNTERPARTY | NET AMOUNTS OF LIABILITIES PRESENTED IN THE STATEMENTS OF ASSETS AND LIABILITIES |
FINANCIAL INSTRUMENT (a) |
CASH COLLATERAL PLEDGED (a) |
NET AMOUNT (b) |
||||||||||||
Morgan Stanley |
$ | 523,194 | $ | (153,124 | ) | $ | | $ | 370,070 | |||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 523,194 | $ | (153,124 | ) | $ | | $ | 370,070 | |||||||
|
|
|
|
|
|
|
|
(a) | Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty. |
(b) | Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2015. |
56
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
Global Credit Income Opportunities Fund
DESCRIPTION | GROSS AMOUNTS OF RECOGNIZED ASSETS |
GROSS AMOUNTS OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES |
NET AMOUNTS OF ASSETS PRESENTED IN THE STATEMENTS OF ASSETS AND LIABILITIES |
|||||||||
Forward Foreign Currency Exchange Contracts |
$ | 98,939 | $ | | $ | 98,939 | ||||||
Purchased Options |
587,827 | | 587,827 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 686,766 | $ | | $ | 686,766 | ||||||
|
|
|
|
|
|
GROSS AMOUNTS NOT OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES |
||||||||||||||||
COUNTERPARTY | NET AMOUNTS OF ASSETS PRESENTED IN THE STATEMENTS OF ASSETS AND LIABILITIES |
FINANCIAL INSTRUMENT (a) |
CASH COLLATERAL RECEIVED (a) |
NET AMOUNT (b) |
||||||||||||
Credit Suisse International |
$ | 415,368 | $ | (225,997 | ) | $ | | $ | 189,371 | |||||||
JPMorgan Chase Bank, N.A. |
172,459 | (93,480 | ) | | 78,979 | |||||||||||
Morgan Stanley |
98,939 | (98,939 | ) | | | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 686,766 | $ | (418,416 | ) | $ | | $ | 268,350 | |||||||
|
|
|
|
|
|
|
|
(a) | Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty. |
(b) | Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2015. |
DESCRIPTION | GROSS AMOUNTS OF RECOGNIZED LIABILITIES |
GROSS AMOUNTS OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES |
NET AMOUNTS OF LIABILITIES PRESENTED IN THE STATEMENTS OF ASSETS AND LIABILITIES |
|||||||||
Forward Foreign Currency Exchange Contracts |
$ | 242,571 | $ | | $ | 242,571 | ||||||
Written Options |
319,477 | | 319,477 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 562,048 | $ | | $ | 562,048 | ||||||
|
|
|
|
|
|
57
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
GROSS AMOUNTS NOT OFFSET IN
THE STATEMENTS OF ASSETS AND LIABILITIES |
||||||||||||||||
COUNTERPARTY | NET AMOUNTS OF LIABILITIES PRESENTED IN THE STATEMENTS OF ASSETS AND LIABILITIES |
FINANCIAL INSTRUMENT (a) |
CASH COLLATERAL PLEDGED (a) |
NET AMOUNT (b) |
||||||||||||
Credit Suisse International |
$ | 225,997 | $ | (225,997 | ) | $ | | $ | | |||||||
JPMorgan Chase Bank, N.A. |
93,480 | (93,480 | ) | | | |||||||||||
Morgan Stanley |
242,571 | (98,939 | ) | | 143,632 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 562,048 | $ | (418,416 | ) | $ | | $ | 143,632 | |||||||
|
|
|
|
|
|
|
|
(a) | Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty. |
(b) | Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2015. |
58
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
59
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
As of June 30, 2015, the components of distributable earnings on a tax-basis were as follows:
UNDISTRIBUTED ORDINARY INCOME |
CAPITAL LOSS CARRYFORWARDS |
OTHER TEMPORARY DIFFERENCES |
UNREALIZED APPRECIATION (DEPRECIATION) |
TOTAL DISTRIBUTABLE EARNINGS |
||||||||||||||||
Global Floating Rate Fund |
$ | 45,559 | $ | (1,215,117 | ) | $ | (30,800 | ) | $ | (4,754,370 | ) | $ | (5,954,728 | ) | ||||||
Global Credit Income Opportunities Fund |
697,347 | (2,073,127 | ) | (8,138 | ) | (3,661,459 | ) | (5,045,377 | ) |
60
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
As of June 30, 2015, the aggregate unrealized security gains and losses based on cost for U.S. federal income tax purposes were as follows:
COST OF INVESTMENTS |
GROSS UNREALIZED APPRECIATION |
GROSS UNREALIZED DEPRECIATION |
NET UNREALIZED APPRECIATION (DEPRECIATION) |
|||||||||||||
Global Floating Rate Fund |
$ | 183,799,960 | $ | 783,725 | $ | (5,638,043 | ) | $ | (4,854,318 | ) | ||||||
Global Credit Income Opportunities Fund |
87,228,363 | 567,939 | (4,357,276 | ) | (3,789,337 | ) |
61
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
9. | Common Stock |
Transactions in common stock for the year ended June 30, 2015 were as follows:
Global Floating Rate Fund
FOR THE YEAR ENDED JUNE 30, 2015 |
PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (1) |
|||||||||||||||
CLASS A | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Shares sold |
1,046,486 | $ | 10,379,529 | 1,222,507 | $ | 12,481,232 | ||||||||||
Shares sold through reinvestments of distributions |
83,026 | 807,940 | 13,651 | 139,125 | ||||||||||||
Shares redeemed |
(1,815,123 | ) | (17,653,590 | ) | (13,926 | ) | (142,258 | ) | ||||||||
Redemption fees(2) |
| 676 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
(685,611 | ) | $ | (6,465,445 | ) | 1,222,232 | $ | 12,478,099 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
CLASS C |
||||||||||||||||
Shares sold |
335,871 | $ | 3,264,612 | 233,502 | $ | 2,379,349 | ||||||||||
Shares sold through reinvestments of distributions |
19,258 | 185,848 | 2,446 | 24,864 | ||||||||||||
Shares redeemed |
(20,267 | ) | (195,905 | ) | (152 | ) | (1,544 | ) | ||||||||
Redemption fees(2) |
| 169 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
334,862 | $ | 3,254,724 | 235,796 | $ | 2,402,669 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
CLASS I |
||||||||||||||||
Shares sold |
| $ | | 3,150,134 | $ | 31,550,060 | ||||||||||
Shares sold through reinvestments of distributions |
234,264 | 2,279,655 | 59,739 | 610,026 | ||||||||||||
Shares redeemed |
(753,573 | ) | (7,271,983 | ) | | | ||||||||||
Redemption fees(2) |
| 1,694 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase (decrease) |
(519,309 | ) | $ | (4,990,634 | ) | 3,209,873 | $ | 32,160,086 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
CLASS Y |
||||||||||||||||
Shares sold |
9,236,912 | $ | 89,446,649 | 6,676,274 | $ | 67,761,452 | ||||||||||
Shares sold through reinvestments of distributions |
493,939 | 4,805,968 | 97,618 | 996,669 | ||||||||||||
Shares redeemed |
(2,813,208 | ) | (27,521,577 | ) | (210,789 | ) | (2,155,109 | ) | ||||||||
Redemption fees(2) |
| 2,920 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
6,917,643 | $ | 66,733,960 | 6,563,103 | $ | 66,603,012 | ||||||||||
|
|
|
|
|
|
|
|
(1) | Fund commenced operations on September 16, 2013. |
(2) | On May 7, 2015, the Funds Board of Trustees voted to remove redemption fees from future transactions. |
62
Babson Capital Funds Trust 2015 Annual Report
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
June 30, 2015
Global Credit Income Opportunities Fund
FOR THE YEAR ENDED JUNE 30, 2015 |
PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (1) |
|||||||||||||||
CLASS A | SHARES | AMOUNT | SHARES | AMOUNT | ||||||||||||
Shares sold |
2,316,931 | $ | 23,545,838 | 250,892 | $ | 2,588,194 | ||||||||||
Shares sold through reinvestments of distributions |
127,930 | 1,237,474 | 3,520 | 36,805 | ||||||||||||
Shares redeemed |
(1,355,520 | ) | (13,184,266 | ) | (6,628 | ) | (69,594 | ) | ||||||||
Redemption fees(2) |
| 2,624 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
1,089,341 | $ | 11,601,670 | 247,784 | $ | 2,555,405 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
CLASS C |
||||||||||||||||
Shares sold |
285,284 | $ | 2,802,118 | 89,635 | $ | 933,045 | ||||||||||
Shares sold through reinvestments of distributions |
13,552 | 130,085 | 900 | 9,400 | ||||||||||||
Shares redeemed |
(12,493 | ) | (121,540 | ) | (159 | ) | (1,661 | ) | ||||||||
Redemption fees(2) |
| 343 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
286,343 | $ | 2,811,006 | 90,376 | $ | 940,784 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
CLASS I |
||||||||||||||||
Shares sold |
| $ | | 2,455,000 | $ | 24,550,000 | ||||||||||
Shares sold through reinvestments of distributions |
253,647 | 2,450,842 | 70,277 | 734,939 | ||||||||||||
Shares redeemed |
| | | | ||||||||||||
Redemption fees(2) |
| 4,679 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
253,647 | $ | 2,455,521 | 2,525,277 | $ | 25,284,939 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
CLASS Y |
||||||||||||||||
Shares sold |
1,654,908 | $ | 16,333,761 | 3,172,809 | $ | 32,089,635 | ||||||||||
Shares sold through reinvestments of distributions |
321,379 | 3,108,290 | 74,417 | 778,240 | ||||||||||||
Shares redeemed |
(1,114,834 | ) | (11,114,262 | ) | (6,875 | ) | (72,116 | ) | ||||||||
Redemption fees(2) |
| 5,954 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net increase |
861,453 | $ | 8,333,743 | 3,240,351 | $ | 32,795,759 | ||||||||||
|
|
|
|
|
|
|
|
(1) | Fund commenced operations on September 16, 2013. |
(2) | On May 7, 2015, the Funds Board of Trustees voted to remove redemption fees from future transactions. |
63
Babson Capital Funds Trust 2015 Annual Report
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of Babson Capital Funds Trust and Shareholders of
Babson Global Floating Rate Fund and Babson Global Credit Income Opportunities:
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Babson Capital Funds Trust, comprising Babson Global Floating Rate Fund and Babson Global Credit Income Opportunities Fund (collectively, the Funds) as of June 30, 2015, and the related statements of operations for the year then ended, the statements of changes in net assets and the financial highlights for the year then ended and for the period September 16, 2013 (commencement of operations) through June 30, 2014. These financial statements and financial highlights are the responsibility of the Funds management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of June 30, 2015, by correspondence with the custodian, brokers, and agent banks; where replies were not received from brokers and agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds as of June 30, 2015, the results of their operations for the year then ended, and the statements of changes in net assets and the financial highlights for the year then ended and for the period September 16, 2013 (commencement of operations) through June 30, 2014, in conformity with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Boston, Massachusetts
August 25, 2015
64
Babson Capital Funds Trust 2015 Annual Report
NAME (AGE), ADDRESS | POSITION(S) THE TRUST |
OFFICE TERM AND LENGTH OF TIME SERVED |
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS |
PORTFOLIOS OVERSEEN IN FUND COMPLEX |
OTHER DIRECTORSHIPS HELD BY DIRECTOR | |||||
Thomas M. Finke (51) 550 South Tryon Street Suite 3300 Charlotte, NC 28202 |
Trustee | Trustee since 2013 | Chairman and Chief Executive Officer (since 2008), Member of the Board of Managers (since 2006), President (2007-2008), Managing Director (2002-2008), Babson Capital; Chief Investment Officer and Executive Vice President (2008-2011), Massachusetts Mutual Life Insurance Company. | 3 | Trustee (since 2013), Babson Capital Global Short Duration High Yield Fund (closed-end investment company advised by Babson Capital); Chairman (2012-2015), Director (since 2008), Babson Capital Management (UK) Limited (investment advisory firm); Chairman and Director (2012-2015), Babson Capital Global Advisors Limited (investment advisory firm); Director (since 2008), Babson Capital Guernsey Limited (holding company); Vice Chairman and Manager (since 2011), MM Asset Management Holding LLC (holding company); Manager (since 2011), Wood Creek Capital Management, LLC (investment advisory firm); Chairman and Director (since 2007), Cornerstone Real Estate Advisers LLC (real estate advisory firm); Director (since 2004), Jefferies Finance LLC (finance company); Manager (2007-2015), Credit Strategies Management LLC (general partner of an investment fund); Manager (since 2005), Loan Strategies Management, LLC (general partner of an investment fund); Manager (since 2005), Jefferies Finance CP Funding LLC (investment company); Manager (2004-2012), Class C Member LLC (equity holding company); Chairman, Chief Executive Officer and Director (2009-2011), MassMutual Capital Partners, LLC (investment company); Director (2007-2011), Scottish Re Group Limited (reinsurance specialist). |
65
Babson Capital Funds Trust 2015 Annual Report
INDEPENDENT TRUSTEES (CONTINUED)
NAME (AGE), ADDRESS | POSITION(S) WITH THE TRUST |
OFFICE TERM AND LENGTH OF TIME SERVED |
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS |
PORTFOLIOS OVERSEEN IN FUND COMPLEX |
OTHER DIRECTORSHIPS HELD BY DIRECTOR | |||||
Thomas W. Bunn (61) 550 South Tryon Street Suite 3300 Charlotte, NC 28202 |
Trustee | Trustee since 2013 | Retired (since 2009); Vice Chairman (2002-2009), Head of National Banking (2006-2009), Head of Corporate and Investment Banking (2002-2006), KeyCorp (commercial and investment banking firm). | 3 | Trustee (since 2013), Babson Capital Global Short Duration High Yield Fund (closed-end investment company advised by Babson Capital); Director (since 2010), SquareTwo Financial (asset recovery and management firm); Director (since 2010), Southern Weaving Co. (webbing and sleeving design and manufacturing company); Trustee (since 2010), Wake Forest University Board of Trustees; Member (since 1998), Babcock School of Business Board of Visitors; Senior Operating Advisor (since 2010), Sound Harbor Partners (investment management firm); Director (since 2009), Nature Conservancy of North Carolina; Director (2009-2014), Kiawah Island Conservancy; Director (2007-2009), Victory Asset Management (mutual fund complex). | |||||
Rodney J. Dillman (63) 550 South Tryon Street Suite 3300 Charlotte, NC 28202 |
Trustee, Chairman | Trustee since 2013 | Retired (since 2012); Deputy General Counsel (2011-2012), Senior Vice President (2008-2012), Vice President (2000-2008), Massachusetts Mutual Life Insurance Company; Member of the Board of Directors and President (2008-2011), MassMutual International LLC; General Counsel (2006-2008), Babson Capital. | 3 | Trustee (since 2012), Babson Capital Global Short Duration High Yield Fund (closed-end investment company advised by Babson Capital); Director (2008-2011), Compania de Seguros CorpVida S.A. (insurance company); Director (2009-2011), MassMutual Europe S.A. (insurance company); Director (2009-2010), Yingda Taihe Life Insurance Co.; Director (2008-2011), MassMutual Asia Limited (insurance company); Director (2008-2011), MassMutual Life Insurance Company; Director (2008-2010), MassMutual Mercuries Life Insurance Company; Director (2005-2010), The MassMutual Trust Company. | |||||
Bernard A. Harris, Jr. (58) 550 South Tryon Street Suite 3300 Charlotte, NC 28202 |
Trustee | Trustee since 2013 | Chief Executive Officer and Managing Partner (since 2002), Vesalius Ventures, Inc.; Director and President (since 1998), The Space Agency; President (since 1999), The Harris Foundation; Clinical Scientist, Flight Surgeon and Astronaut (1986-1996), NASA. | 3 | Trustee (since 2012), Babson Capital Global Short Duration High Yield Fund (closed-end investment company advised by Babson Capital); Trustee (since 2011), Salient Midstream & MLP Fund and Salient MLP & Energy Infrastructure Fund; Trustee (since 2010), Salient Absolute Return Fund; Director (since 2009), Monebo Technologies Inc. (medical technology design company); Director (since 2008), US Physical Therapy (USPH: NYSE); Director (since 2012), E-Cardio, Inc. (provides services for cardiac monitoring). |
66
Babson Capital Funds Trust 2015 Annual Report
INDEPENDENT TRUSTEES (CONTINUED)
NAME (AGE), ADDRESS | POSITION(S) WITH THE TRUST |
OFFICE TERM AND LENGTH OF TIME SERVED |
PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS |
PORTFOLIOS OVERSEEN IN FUND COMPLEX |
OTHER DIRECTORSHIPS HELD BY DIRECTOR | |||||
Thomas W. Okel (52) 550 South Tryon Street Suite 3300 Charlotte, NC 28202 |
Trustee | Trustee since 2013 | Executive Director (since 2011), Catawba Lands Conservancy; Global Head of Syndicated Capital Markets (1998-2010), Bank of America Merrill Lynch. | 3 | Trustee (since 2012), Babson Capital Global Short Duration High Yield Fund (closed-end investment company advised by Babson Capital). | |||||
Martin A. Sumichrast (48) 550 South Tryon Street Suite 3300 Charlotte, NC 28202 |
Trustee | Trustee since 2013 | Vice Chairman and Prinicipal (since 2013), Siskey Capital, LLC (merchant banking); Managing Director (2012-2013), Washington Capital, LLC (family office); Managing Director (2009-2012), Lomond International (business advisory firm). | 3 | Trustee (since 2012), Babson Capital Global Short Duration High Yield Fund (closed-end investment company advised by Babson Capital); Director (since 2014), Kure Corp. (retail); Director (since 2014), Jadeveon Clowney Help-InTime Foundation; Director (since 2015), Social Realty, Inc. (digital platform technology and management software company for internet advertising); Chairman and Director (since 2015), Level Beauty Group Inc. (a retail/e-commerce beauty investment/management company). |
67
Babson Capital Funds Trust 2015 Annual Report
NAME (AGE), ADDRESS | POSITION(S) WITH THE TRUST |
OFFICE TERM* AND LENGTH OF TIME SERVED |
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS | |||
Anthony J. Sciacca (44) 550 South Tryon Street Charlotte, NC 28202 |
President | Since 2013 | Head of Babson Capital Strategic Investors (since 2014), Head of Global Business Development Group (since 2008), Managing Director (since 2006), Babson Capital. | |||
Russell D. Morrison (49) 550 South Tryon Street Charlotte, NC 28202 |
Senior Vice President | Since 2013 | Vice Chairman (since 2014), Member of the Board of Managers (since 2014), Head of Global Fixed Income Group (since 2012), Head of Global High Yield Investments Group (since 2010); Co-Head U.S. Loan Team (2006-2009), Managing Director (since 2002), Babson Capital; Chairman and Director (since 2015), Babson Capital Management (UK) Limited (investment advisory firm); Chairman and Director (since 2015), Babson Capital Global Advisors Limited (investment advisory firm); President (since 2012), Babson Capital Global Short Duration High Yield Fund (closed-end investment company advised by Babson Capital). | |||
Patrick Hoefling (34) 550 South Tryon Street Charlotte, NC 28202 |
Chief Financial Officer | Since 2013 | Treasurer (since 2015), Managing Director (since 2015), Director (2008-2015), Babson Capital; Chief Financial Officer (since 2012), Babson Capital Global Short Duration High Yield Fund (closed-end investment company advised by Babson Capital); Manager (2005-2008), Deloitte and Touche. | |||
Andrew Lennon (39) 550 South Tryon Street Charlotte, NC 28202 |
Treasurer | Since 2013 | Managing Director (since 2010), Director (2005-2009), Babson Capital; Treasurer (since 2013), Babson Capital Global Short Duration High Yield Fund (closed-end investment company advised by Babson Capital). | |||
Paul J. Thompson (42) 550 South Tryon Street Charlotte, NC 28202 |
Vice President | Since 2013 | Chief Financial Officer (since 2015), Chief Operating Officer and Head of Global Investment Services (since 2010), Head of Operations and Portfolio/Client Services (2002-2010), Managing Director (since 2008), Babson Capital. | |||
Paul Gehrig (46) 550 South Tryon Street Charlotte, NC 28202 |
Vice President | Since 2013 | Managing Director (since 2008), Babson Capital. | |||
Brian W. Pope (35) 550 South Tryon Street Charlotte, NC 28202 |
Vice President | Since 2013 | Director (since 2009), Babson Capital | |||
Duncan Robertson (46) 550 South Tryon Street Charlotte, NC 28202 |
Vice President | Since 2014 | Managing Director (since 2008), Babson Capital. |
68
Babson Capital Funds Trust 2015 Annual Report
OFFICERS OF THE TRUST (CONTINUED)
NAME (AGE), ADDRESS | POSITION(S) WITH THE TRUST |
OFFICE TERM* AND LENGTH OF TIME SERVED |
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS | |||
Melissa LaGrant (42) 550 South Tryon Street Charlotte, NC 28202 |
Chief Compliance Officer | Since 2013 | Managing Director (since 2005), Babson Capital; Chief Compliance Officer (since 2013), Babson Capital Finance LLC; Chief Compliance Officer (since 2006), Babson Capital Corporate Investors and Babson Capital Participation Investors (closed-end investment companies advised by Babson Capital); Chief Compliance Officer (since 2012), Babson Capital Global Short Duration High Yield Fund (closed-end investment company advised by Babson Capital). | |||
Janice M. Bishop (49) 550 South Tryon Street Charlotte, NC 28202 |
Secretary and Chief Legal Officer | Since 2013 | Senior Counsel and Managing Director (since 2014), Counsel (2007-2014), Babson Capital; Associate Secretary (since 2008), Babson Capital Corporate Investors and Babson Capital Participation Investors (closed-end investment companies advised by Babson Capital); Secretary and Chief Legal Officer (since 2012), Babson Capital Global Short Duration High Yield Fund (closed-end investment company advised by Babson Capital). | |||
Michelle Manha (41) 550 South Tryon Street Charlotte, NC 28202 |
Assistant Secretary | Since 2013 | Associate General Counsel and Managing Director (since 2014), Counsel (2008-2014), Babson Capital; Assistant Secretary (since 2012), Babson Capital Global Short Duration High Yield Fund, (closed-end investment company advised by Babson Capital). |
69
Babson Capital Funds Trust 2015 Annual Report
JOINT PRIVACY NOTICE OF BABSON CAPITAL MANAGEMENT LLC AND
BABSON CAPITAL FUNDS TRUST
This privacy notice is being provided by the following entities: Babson Capital Management LLC; Babson Capital Securities LLC; Babson Capital Management (Japan) KK; Babson Capital Cornerstone Asia Ltd.; Babson Capital Funds Trust; Babson Capital Global Short Duration High Yield Fund; Babson Capital Corporate Investors and Babson Capital Participation Investors (together, for purposes of this privacy notice, Babson Capital).
When you use Babson Capital 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:
n | Applications or other forms, interviews, or by other means; |
n | Consumer or other reporting agencies, government agencies, employers or others; |
n | Your transactions with us, our affiliates, or others; and |
n | 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 Babson Capital. 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 notice describes the privacy policies of Babson Capital, and applies to all accounts you presently have, or may open in the future, with Babson Capital using your social security number or federal taxpayer identification number. As mandated by various regulators, including rules issued by the Securities and Exchange Commission, we will be sending you this notice annually, as long as you remain a customer of Babson Capital.
Babson Capital 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.
June 2015
70
Babson Capital Funds Trust
ANNUAL REPORT
June 30, 2015
Item 2. | Code of Ethics. |
The Registrant adopted a Code of Ethics for Principal Executive and Senior Financial Officers (the Code) on July 29, 2013, which is available on the Registrants website at www.babsoncapital.com/funds/mutual-funds. During the period covered by this Form N-CSR, there were no amendments to, or waivers from, the Code.
Item 3. | Audit Committee Financial Expert. |
The Registrants Board of Trustees has determined that Dr. Bernard A. Harris, Jr., Mr. Thomas W. Okel and Mr. Martin A. Sumichrast, constituting all the members of the Registrants Audit Committee, are audit committee financial experts. Dr. Harris, Mr. Okel and Mr. Sumichrast are independent for purposes of this Item 3 as required by applicable regulation.
Item 4. | Principal Accountant Fees and Services. |
The Registrant has engaged its principal accountant, Deloitte & Touche LLP (Deloitte), to perform audit services, audit-related services, tax services and other services. The following tables detail the aggregate fees billed or expected to be billed for each of the last two fiscal years by Deloitte.
Fees Billed to the Registrant:
Year Ended June 30, 2015 |
Year Ended June 30, 2014 |
|||||||
Audit Fees |
$ | 130,850 | $ | 123,750 | ||||
Audit-Related Fees |
$ | 0 | $ | 0 | ||||
Tax Fees |
$ | 54,000 | $ | 18,000 | ||||
All Other Fees |
$ | 0 | $ | 0 | ||||
|
|
|
|
|||||
Total Fees |
$ | 184,850 | $ | 141,750 | ||||
|
|
|
|
Non-Audit Fees Billed to Babson Capital and MassMutual:
Year Ended June 30, 2015 |
Year Ended June 30, 2014 |
|||||||
Audit Fees |
$ | 3,396,868 | $ | 2,982,385 | ||||
Audit-Related Fees |
$ | 0 | $ | 0 | ||||
Tax Fees |
$ | 1,687,113 | $ | 1,994,907 | ||||
All Other Fees |
$ | 2,031,819 | $ | 4,880,709 | ||||
|
|
|
|
|||||
Total Fees |
$ | 7,115,800 | $ | 9,858,001 | ||||
|
|
|
|
The category Audit Fees refers to performing an audit of the Registrants, Babson Capital Management LLCs (Babson Capital) or Massachusetts Mutual Life Insurance Companys (MassMutual) annual financial statements or services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements. The category Audit-Related Fees reflects fees billed by Deloitte for various non-audit and non-tax services rendered to the Registrant, Babson Capital, and MassMutual. Preparation of Federal, state and local income tax and tax compliance work are representative of the fees reported in the Tax Fees category. The category All Other Fees represents fees billed by Deloitte for consulting rendered to the Registrant, Babson Capital, and MassMutual.
The Sarbanes-Oxley Act of 2002 and its implementing regulations allow the Registrants Audit Committee to establish a pre-approval policy for certain services rendered by the Registrants principal accountant, Deloitte. During the fiscal year ended June 30, 2015, the Registrants Audit Committee approved all of the services rendered to the Registrant by Deloitte and did not rely on such a pre-approval policy for any such services.
The Audit Committee has also reviewed the aggregate fees billed for professional services rendered by Deloitte for the years ended June 30, 2014 and June 30, 2015 for the Registrant and for the non-audit services provided to Babson Capital, and Babson Capitals parent, MassMutual. As part of this review, the Audit Committee considered whether the provision of such non-audit services was compatible with maintaining the principal accountants independence.
The June 30, 2014 fees billed represent final 2014 amounts, which may differ from the preliminary figures available as of the filing date of the Registrants 2014 Annual Form N-CSR and includes, among other things, fees for services that may not have been billed as of the filing date of the Registrants 2014 Annual Form N-CSR, but are now properly included in the June 30, 2014 fees billed to the Registrant, Babson Capital and MassMutual.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Schedule of Investments. |
(a) | The Registrants Consolidated Schedule of Investments as of the close of the reporting period is included in the Report to Stockholders 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.
Item 8. | Portfolio Managers of Closed-End Investment Management Companies. |
Not applicable.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
Item 10. | Submission of Matters to a Vote of Security Holders. |
There have been no material changes to procedures by which the shareholders may recommend nominees to the Registrants Board of Trustees.
Item 11. | Controls and Procedures. |
(a) | The Registrants principal executive officer and principal financial officer, or persons performing similar functions, have concluded that the Registrants disclosure controls and procedures as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act), are effective as of the date within 90 days of the filing date of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended. |
(b) | There were no changes in the Registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the Registrants internal control over financial reporting. |
Item 12. | Exhibits. |
(a)(1) | The Registrant has posted its Code of Ethics on its website at www.babsoncapital.com/funds/mutual-funds. | |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act are attached hereto. | |
Exhibit 99.1 Cert | ||
Exhibit 99.2 Cert | ||
(a)(3) | Not applicable. | |
(b) | Certification pursuant to Rule 30a-2(b) under the 1940 Act is attached hereto. | |
Exhibit 99.906 Cert |
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) | Babson Capital Funds Trust |
By (Signature and Title) | /s/ Anthony J. Sciacca | |
Anthony J. Sciacca, President (Principal Executive Officer) |
Date September 4, 2015
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/ Anthony J. Sciacca | |
Anthony J. Sciacca, President (Principal Executive Officer) |
Date September 4, 2015
By (Signature and Title) | /s/ Patrick Hoefling | |
Patrick Hoefling, Chief Financial Officer (Principal Financial Officer) |
Date September 4, 2015
Exhibit 99.1 Cert
CERTIFICATIONS
I, Anthony J. Sciacca, certify that:
1. | I have reviewed this report on Form N-CSR of Babson Capital Funds Trust (the registrant); |
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 of the registrant as of, and for, the period presented in this report; |
4. | The registrants other certifying officer 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants second fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting. |
September 4, 2015 |
/s/ Anthony J. Sciacca | |
Date | Anthony J. Sciacca, President (Principal Executive Officer) |
Exhibit 99.2 Cert
CERTIFICATIONS
I, Patrick Hoefling, certify that:
1. | I have reviewed this report on Form N-CSR of Babson Capital Funds Trust (the registrant); |
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 of the registrant as of, and for, the period presented in this report; |
4. | The registrants other certifying officer 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 registrants 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 registrants internal control over financial reporting that occurred during the registrants second fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants 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 registrants 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 registrants internal control over financial reporting. |
September 4, 2015 |
/s/ Patrick Hoefling | |
Date | Patrick Hoefling, Chief Financial Officer (Principal Financial Officer) |
Exhibit 99.906 Cert
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of Babson Capital Funds Trust, does hereby certify, to such officers knowledge, that the report on Form N-CSR of Babson Capital Funds Trust for the period ended June 30, 2015, 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 Babson Capital Funds Trust for the stated period.
/s/ Anthony J. Sciacca |
/s/ Patrick Hoefling | |
Anthony J. Sciacca President |
Patrick Hoefling Chief Financial Officer | |
Dated: September 4, 2015 |
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 Babson Capital Funds Trust for purposes of Section 18 of the Securities Exchange Act of 1934.
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