N-CSRS

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

Barings Funds Trust

(Exact Name of Registrant as Specified in Charter)

300 South Tryon Street

Suite 2500

Charlotte, NC 28202

(Address of Principal Executive Offices)

Registrant’s telephone number, including area code: (704) 805-7200

Janice M. Bishop

Secretary and Chief Legal Officer

c/o Barings 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: December 31, 2017

Item 1. Reports to Stockholders.

BARINGS FUNDS TRUST

Semi-Annual Report

December 31, 2017

BFT Service Providers

ADVISER

Barings LLC

300 South Tryon Street

Suite 2500

Charlotte, NC 28202

SUB-ADVISER

Barings Global Advisers Limited

61 Aldwych

London, UK

WC2B4AE

COUNSEL TO THE TRUST

Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, MA 02110

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Deloitte & Touche LLP

30 Rockefeller Plaza

New York, NY

10112-0015

CUSTODIAN

State Street Bank & Trust Company

One Lincoln Street

Boston, MA 02111

TRANSFER AGENT AND REGISTRAR

ALPS Fund Services, Inc.

1290 Broadway

Suite 1100

Denver, CO 80203

FUND ADMINISTRATION/ACCOUNTING

State Street Bank & Trust Company

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 Barings Funds Trust (the “Trust”) have delegated proxy voting responsibilities relating to the voting of securities held by the Trust to Barings LLC (“Barings”). A description of Barings’ proxy voting policies and procedures is available (1) without charge, upon request, by calling, toll-free 1-877-766-0014; (2) on the Trust’s website at http://www.Barings.com; and (3) on the U.S. Securities and Exchange Commission’s (“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 SEC’s website at http://www.sec.gov; and (ii) at the SEC’s Public Reference Room in Washington, DC (which information on their operation may be obtained by calling 1-800-SEC-0330). A complete schedule of portfolio holdings as of each quarter-end is available on the Trust’s website at http://www.Barings.com or upon request by calling, toll-free, 1-877-766-0014.

Duncan Robertson

President,

Barings Funds Trust

Barings Funds Trust

Barings Global Floating Rate Fund

Barings Global Credit Income Opportunities Fund

Barings Active Short Duration Bond Fund

Barings Total Return Bond Fund

Barings Emerging Markets Debt Blended Total Return Fund

Barings Emerging Markets Local Currency Debt Fund

Barings Global High Yield Fund

Barings U.S. High Yield Fund

Dear Shareholder,

Thank you for your continued trust and partnership in 2017. The year was characterized by continued strength across capital markets – as global equity indices achieved record highs and corporate bond markets remained well-supported by an investor base still hungry for yield.

In addition to the strength witnessed across capital markets, the global economy also performed better than many market forecasters had predicted. This momentum was broad-based as the world’s three major growth engines – the U.S., Europe and Asia – accelerated simultaneously.

As we consider what lies ahead in 2018 and beyond, we see both tailwinds and headwinds for the global economy and capital markets. On the positive side, consumer optimism, manufacturing measures and employment trends all look to be in healthy or improving territory across the world’s major economies. Corporate issuers of equity and debt also appear to be in fairly good shape – balance sheets do not appear to be overly leveraged; corporate debt default rates remain low by historical standards; and the earnings outlook continues to be strong across both developed and emerging markets.

However, as we are now nine years removed from the last recession, having witnessed a continued march higher in asset prices over that time, we believe investors must be particularly mindful of risks at this point in the cycle. Interest rates are on the rise in the U.S. with other developed markets potentially to follow. And while the U.S. economy appears poised to handle the impact of higher rates, monetary policy missteps become more likely late in the economic cycle. Similarly, while inflation has been largely absent during the long recovery from the Global Financial Crisis, there are signs that this may soon again become a risk that markets must grapple with. And politic risk, as always, has a way of rearing its head in unexpected ways – elections this year in Mexico and Brazil will have broad implications for both emerging and developed markets; Brexit negotiations will likely be back in the headlines; and the implementation (or lack thereof) of the Trump administration’s policies from tax and immigration reforms to infrastructure spending all have the potential to introduce volatility to markets.

At Barings, our focus continues to be on delivering you, our shareholders, with strong risk-adjusted returns throughout the ups and downs of economic and market cycles. We aim to implement a consistent and repeatable active management approach grounded in rigorous, bottom-up fundamental analysis. From global high yield to emerging markets debt and investment grade corporate credit, our goal is to provide you with the strategies that meet your investment goals today, and to grow and adapt so that we can continue to meet your needs in the future.

On behalf of the entire Barings team, we thank you for your partnership and trust and we look forward to helping you achieve your investment objectives.

Sincerely,

Duncan Robertson

President

Cautionary Notice: Certain statements contained in this report may be “forward looking” statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date in which they are made and reflect management’s current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. These statements are subject to change at any time based upon economic, market or other conditions and may not be relied upon as investment advice or an indication of the Trust’s trading intent. References to specific securities are not recommendations of such securities, and may not be representative of the Trusts’ current or future investments. We undertake no obligation to publicly update these forward looking statements, whether as a result of new information, future events, or otherwise.

ALPS Distributors, Inc. is the distributor for the Barings mutual funds. ALPS and Barings are separate and unaffiliated. A prospectus can be obtained by calling 1.855.439.5459. Read the prospectus carefully before investing. Investors should carefully consider the investment objective, risks, charges and expenses of any mutual fund before investing. This and other important information is contained in the prospectus.

Barings Global Floating Rate Fund 2017 Semi-Annual Report

Investment Objective

The investment objective of the Barings 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 six month reporting period through December 31, 2017 of 2.26%, performing in line with the Credit Suisse Global Loan Benchmark, which returned 2.25%.¹

What factors influenced performance of the Fund?

∎ During the last half of 2017, the global loan markets had positive returns in five of six months and defaults were below historical averages.

∎ From a geographic perspective, the Fund’s slight overweight to European loans helped performance as the European loans in the Fund modestly outperformed the U.S. loans.

∎ From a ratings category perspective, the Fund was overweight the lower segments (B and CCC) of the market, which outperformed, and underweight the BB segment.

∎ Every sector, except consumer durables and media telecom, generated positive returns. The sectors that contributed the most to performance versus the index were finance and retail. The two sectors that detracted the most from performance versus the index were consumer durables and forest products/containers.

Describe recent portfolio activity.

∎ During the period, the Fund increased its exposure to U.S. loans and reduced exposure to European loans, as for most of the period we found more attractive opportunities in the U.S. than in Europe. At the end of the period, European loans started to look more attractive.

∎ Over the last six months, only one of the Fund’s top three sector exposures have changed as oil and gas dropped out. The Fund’s three largest sectors were diversified/conglomerate services, healthcare, education and childcare and chemicals, plastics and rubber. The two sectors that decreased the most during the period were telecommunications and oil and gas. The two sectors that increased the most were finance and chemicals, plastics and rubber.

∎ By ratings category, the Fund increased exposure to the B category and reduced exposure to the BB and CCC categories.

Describe portfolio positioning at period end.

∎ The Fund finished the six month reporting period, ending December 31, 2017, with 85.1% weighting to global senior secured loans, 8.4% to global senior secured high yield bonds and 6.2% to cash.

∎ From an industry perspective, the Fund remains well-diversified across a number of sectors, with higher concentrations in diversified/conglomerate services (11.3%), healthcare, education and childcare (11.0%) and chemicals, plastics and rubber (6.4%) as of December 31, 2017.

^1.  Total return describes the return to an investor of Class Y shares and includes the reinvestment of dividends and capital gains. Past performance is no guarantee of future results and investment returns and principal value of the Funds (or of the investment company) will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance quoted. Call 1.855.439.5459 or visit barings.com for current month end performance. 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

Barings Global Floating Rate Fund 2017 Semi-Annual Report

∎ As of December 31, 2017, the Fund had the following credit quality breakdown: 0.9% in BBB assets, 25.4% in BB assets, 55.7% in B assets and 6.5% in CCC and below assets. Approximately 5.3% of the Fund’s assets are not publicly rated. Cash and accrued income accounted for the remaining 6.3% of the portfolio assets.²

∎ The top five countries in the portfolio at the end of the reporting period are the U.S. (73.0%), the U.K. (5.8%), Germany (4.6%), France (3.9%) and the Netherlands (2.4%). Overall, the Fund has exposure to 15 different countries, and we continue to focus on building a well-diversified portfolio of global floating rate securities.

Describe market and portfolio outlook.

∎ As the global loan market has delivered strong returns over the last two years, some investors may believe that valuations appear rich. While headline spreads for global loans are at the lowest levels since the post-financial crisis years, spreads have been lower in previous low-default environments.

∎ In the current environment, we are seeing pockets of opportunity for strong risk-adjusted returns in B assets, which can offer a substantial spread premium over BB assets.

∎ We believe the stable to improving fundamentals of high yield issuers, expected low defaults, and the strong technical backdrop could cause spreads to further tighten. Looking ahead, the pace of new deal issuance (supply) and fund flows (demand) could have a significant impact on spreads in 2018.

^2.  Ratings shown are the highest rating given by one of the following national rating agencies: S&P, Moody’s or Fitch. Additional information about ratings can be found, respectively, at www.standardandpoors.com, www.moodys.com and www.fitchratings.com. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings categories used by S&P and Fitch; BB, B, CCC/CC/C and D are below investment grade ratings categories used by S&P and Fitch. Aaa, Aa, A and Baa are investment grade ratings categories used by Moody’s; Ba, B, Caa/Ca and C are below investment grade ratings categories used by Moody’s. 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

Barings Global Floating Rate Fund 2017 Semi-Annual Report

PORTFOLIO COMPOSITION (% OF ASSETS*)

* The percentages shown above represent a percentage of the assets as of December 31, 2017.

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 December 31, 2017.

4

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

Investment Objective

The investment objective of the Barings 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?

∎ The Fund reported a net total rate of return for the six month reporting period through December 31, 2017 of 2.08% and underperformed the 3-Month USD LIBOR + 500 basis points¹ Benchmark, which returned 3.17%.²

What factors influenced performance of the Fund?

∎ During the second half of 2017, the global high yield bonds market outperformed the global loan market, but both markets had positive returns as defaults remained below historical averages.

∎ CLOs were the top performing asset class, followed by loans and bonds. As bonds had the largest allocation, they were the largest contributors to performance.

∎ From a geographic perspective, the Fund’s North American assets outperformed the European assets, and were the largest contributors to performance.

∎ From a ratings category perspective, the Fund’s B assets were the largest contributors to performance, followed by BB and CCC assets.

∎ Broadcasting, consumer durables and food and drug were the only negative performing sectors during the period. The sectors that contributed the most to performance were healthcare and metals/minerals.

Describe recent portfolio activity.

∎ During the period, the Fund increased its exposure to the U.S. and reduced its exposure to Europe, as for most of the period we found more attractive opportunities in the U.S. than in Europe. At the end of the period, European loans and bonds started to look more attractive versus the U.S.

∎ The Fund’s loan and CLO exposure increased, while the Fund’s bond exposure decreased.

∎ By ratings category, the Fund increased exposure to the BB and CCC categories, and reduced exposure to the B and not publicly rated categories.

∎ Over the last six months, only one of the Fund’s top three sector exposures have changed as finance dropped out. The Fund’s three largest sectors in terms of exposure were oil and gas, diversified/conglomerate services, and healthcare, education and childcare. The two sectors to which the Fund’s exposure decreased the most during the period were oil and gas and diversified/conglomerate manufacturing. The two sectors to which the Fund’s exposure increased the most were insurance and healthcare, education and childcare.

^1.  A unit that is equal to 1/100th of 1% or 0.01%.

^2.  Total return describes the return to an investor of Class Y shares and includes the reinvestment of dividends and capital gains. Past performance is no guarantee of future results and investment returns and principal value of the Funds (or of the investment company) will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance quoted. Call 1.855.439.5459 or visit barings.com for current month end performance. 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 Intercontinental Exchange, that banks charge one another for the use of short-term money (3 months) in England’s 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 Fund’s performance will exceed that of LIBOR by any given increment, or at all.

5

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

Describe portfolio positioning at period end.

∎ The Fund finished the semi-annual reporting period, ending December 31, 2017, with an allocation of 44.7%, 32.7% and 14.4% 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 0.6%, equities at 0.7% and cash at 6.9%. A significant portion of the portfolio (over 60%) is senior secured in nature (includes CLOs backed by secured loans), which can potentially mitigate principal loss in the event that default rates increase.

∎ From an industry perspective, the Fund remains well-diversified across a number of sectors, with higher concentrations in oil and gas (9.3%), diversified/conglomerate services (8.5%), and healthcare, education and childcare (7.3%) as of December 31, 2017.

∎ As of December 31, 2017, the Fund had the following credit quality breakdown: 0.6% in BBB assets, 32.0% in BB assets, 45.0% in B assets and 11.5% in CCC and below assets. Approximately 4.0% of the Fund’s assets are not publicly rated.³

∎ The top five countries in the portfolio at the end of the reporting period are the U.S. (71.4%), the U.K. (7.7%), the Netherlands (3.5%), Germany (3.0%) and France (1.6%). The Cayman Islands exposure related to the Fund’s CLO holdings is included in the U.S. Overall, the Fund has exposure to 15 different countries, and we continue to focus on building a well-diversified portfolio of global high yield securities.

Describe market and portfolio outlook.

∎ As the global high yield bond and loan markets have delivered strong returns over the last two years, some investors may believe that high yield valuations appear rich. While headline spreads for global loans and high yield bonds are at the lowest levels since the post-financial crisis years, spreads have been lower in previous low-default environments.

∎ In the current environment, we are seeing pockets of opportunity for strong risk-adjusted returns in B assets, which can offer a substantial spread premium over BB assets, with considerably lower duration and higher levels of secured assets.

∎ We believe the stable to improving fundamentals of high yield issuers, expected low defaults, and the strong technical backdrop could cause spreads to further tighten. Looking ahead, the pace of new deal issuance (supply) and fund flows (demand) could have a significant impact on spreads in 2018. Overall, we continue to see select opportunities across both U.S. and European high yield bond and loan markets.

^3.  Ratings shown are the highest rating given by one of the following national rating agencies: S&P, Moody’s or Fitch. Additional information about ratings can be found, respectively, at www.standardandpoors.com, www.moodys.com and www.fitchratings.com. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings categories used by S&P and Fitch; BB, B, CCC/CC/C and D are below investment grade ratings categories used by S&P and Fitch. Aaa, Aa, A and Baa are investment grade ratings categories used by Moody’s; Ba, B, Caa/Ca and C are below investment grade ratings categories used by Moody’s. Ratings categories may include gradations within each category. 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

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

PORTFOLIO COMPOSITION (% OF ASSETS*)

* The percentages shown above represent a percentage of the assets as of December 31, 2017.

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 December 31, 2017.

7

Barings Active Short Duration Bond Fund 2017 Semi-Annual Report

Investment Objective

Barings Active Short Duration Bond Fund (“Active Short Duration Bond Fund” or the “Fund”) seeks to achieve a high total rate of return, primarily from current income while minimizing fluctuations in capital values by investing primarily in a diversified portfolio of short-term investment grade fixed income securities.

Portfolio Management Commentary

How did the Fund perform?

∎ The Fund reported a net total rate of return for the six month reporting period through December 31, 2017 of 0.79%, outperforming the Bloomberg Barclays U.S. 1-3 Year Government Bond Index, which returned (0.03%).¹

What factors influenced performance of the Fund?

∎ Duration positioning positively contributed to performance relative to the index. The Fund uses Treasury bonds and futures to help manage duration. During the period, the slope points along the curve we monitor flattened. In accordance with our duration management process, the Fund shortened duration to 1.0 year to end the year.

∎ The Fund’s allocation to corporate credit contributed positively to performance. Corporate spreads have tightened over the period to help performance. Allocations to banking and the financial services sectors benefitted the Fund. Information technology and pharmaceuticals detracted over the period.

∎ Asset backed securities (ABS) was the primary contributor within the securitized sector. Allocations to government-guaranteed FFELP student loans and automobile receivable ABS collateral were the largest contributing subsectors.

∎ Downside derivative mitigation, such as using investment grade CDX index credit default swaps (a swap where the seller compensates the buyer in the event of a default) to partially hedge our longer duration ABS exposures, CMBX to gain exposure to the CMBS sector and a payer/receiver swaption pair to hedge against possible rising volatility detracted from performance during the period.

Describe recent portfolio activity.

∎ The Fund ended the period with a duration position of 1.0 year, as the yield curve between one year and three years remains flattened along all the relevant slope points.

∎ The Fund reduced the CMO agency allocation to help shorten overall Fund duration during the period. The allocation was 1.0% at the end of the period.

^1.  Total return describes the return to an investor of Class Y shares and includes the reinvestment of dividends and capital gains. Past performance is no guarantee of future results and investment returns and principal value of the Funds (or of the investment company) will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance quoted. Call 1.855.439.5459 or visit barings.com for current month end performance. The net asset value (NAV) will fluctuate with market conditions. All returns 1-year or less are cumulative. The Bloomberg Barclays U.S. 1-3 Year Government Bond Index is comprised of the U.S. Treasury and U.S. Agency Indices. The U.S. Government Index includes Treasuries (public obligations of the U.S. Treasury) and U.S. agency debentures (publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government) that have remaining maturities of more than one year and up to but not including 3 years. Indices are unmanaged. It is not possible to invest directly in an index.

8

Barings Active Short Duration Bond Fund 2017 Semi-Annual Report

Describe portfolio positioning at period end.

∎ The Fund continues to be well-diversified across corporates, securitized and governments. The corporate allocation is at approximately 42.8%, with 37.6% in investment grade corporates, 4.0% in BB-rated and crossover high yield and 1.2% in U.S. dollar-denominated emerging markets.² U.S. money centers and regional banks represent the largest corporate allocation to the Fund. Away from the banking sector, insurance still offers attractive income opportunities with decent fundamentals. We also believe that opportunities remain in specific single names based on fundamental research recommendations.

∎ The securitized ABS allocation was 25.6% at the end of the year. Student loans represent the largest allocation, followed by automotive loan collateral. Additional ABS subsectors consist of other subsectors such as timeshares and franchise receivables, in addition to others. The Fund maintains an active positioning in residential mortgage backed securities (RMBS) and commercial mortgage backed securities (CMBS), where holdings remain in shorter-maturity seasoned issues.

Describe market and portfolio outlook.

∎ While global growth prospects remain relatively sound, economic data releases in the U.S. have been underwhelming during the year. This pushed short maturity government bond yields higher as market participants have begun to reappraise future monetary policy expectations across both domestic and international markets, although longer dated maturity yields have fallen. However, risk assets have performed well, suggesting that investors are looking at better global growth.

∎ With the flat U.S. Treasury yield curve to end the year, the duration of the Fund remained at 1.0 years in accordance with our duration management process.

∎ The Fund expects to continue to maintain a lower allocation in both Treasury and agency securities, with an active allocation to corporate bonds. Technicals may remain strong for corporate credit with continued robust mutual fund inflows, demand from non-U.S. investors and domestic and pension buying. Fundamentals continue to show signs of improvement. The Fund expects to continue to reinvest within the sector.

∎ The Fund expects to continue to selectively reinvest and add exposure to ABS, such as student loans, and franchise whole business deals, as opportunities arise.

^2.  Ratings shown are the highest rating given by one of the following national rating agencies: S&P, Moody’s or Fitch. Additional information about ratings can be found, respectively, at www.standardandpoors.com, www.moodys.com and www.fitchratings.com. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings categories used by S&P and Fitch; BB, B, CCC/CC/C and D are below investment grade ratings categories used by S&P and Fitch. Aaa, Aa, A and Baa are investment grade ratings categories used by Moody’s; Ba, B, Caa/Ca and C are below investment grade ratings categories used by Moody’s. Ratings categories may include gradations within each category. 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.

9

Barings Active Short Duration Bond Fund 2017 Semi-Annual Report

CREDIT QUALITY BREAKDOWN (% OF ASSETS*)

* The percentages shown above represent a percentage of the assets as of December 31, 2017.

PORTFOLIO COMPOSITION (% OF ASSETS*)

* The percentages shown above represent a percentage of the assets as of December 31, 2017.

10

Barings Total Return Bond Fund 2017 Semi-Annual Report

Investment Objective

Barings Total Return Bond Fund (“Total Return Bond Fund” or the “Fund”) seeks a superior total rate of return by investing in fixed income instruments.

Portfolio Management Commentary

How did the Fund perform?

∎ The Fund reported a net total rate of return for the six month reporting period through December 31, 2017 of 1.64%, outperforming the Bloomberg Barclays U.S. Aggregate Index (the “Benchmark”), which returned 1.24%.¹

What factors influenced performance of the Fund?

∎ An underweight to Treasuries relative to the Benchmark positively contributed to performance. The Fund seeks to find investment opportunities in asset classes away from government securities.

∎ Investment grade corporate credit was a positive contributor to performance as spreads tightened over the period. Banking and gas pipeline sectors helped performance. Holdings in information technology were the primary detractor.

∎ The Fund has a 4.7% allocation to short weighted average life, AAA-rated collateralized loan obligation (CLO) structured product.² This out-of-index allocation detracted relative to the Benchmark.

∎ No Fund allocation to taxable municipal bonds detracted from performance during the period.

∎ Asset backed securities (ABS) helped largely due to holdings in private and government-guaranteed Federal Family Education Loan Program (FFELP) student loans, as this sector performed well for the reporting period. Franchise receivables also contributed positively to performance.

∎ A modest currency overlay strategy, which is 5% of the Fund on a notional basis and helps to lower tracking error, was a positive contributor over the period.

∎ Downside derivative mitigation, such as using investment grade CDX index credit default swaps (a swap where the seller compensates the buyer in the event of a default) to partially hedge our longer duration ABS exposures, and a payer/receiver swaption pair to hedge against possible rising volatility detracted from performance during the period.

Describe recent portfolio activity.

∎ The Fund maintained an active allocation to ABS, with purchases over the period in consumer and commercial sectors such as student loans, timeshares and shipping containers.

^1.  Total return describes the return to an investor of Class Y shares, and includes the reinvestment of dividends and capital gains. Past performance is no guarantee of future results and investment returns and principal value of the Funds (or of the investment company) will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance quoted. Call 1.855.439.5459 or visit barings.com for current month end performance. The net asset value (NAV) will fluctuate with market conditions. All returns 1-year or less are cumulative. The Bloomberg Barclays U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis. Indices are unmanaged. It is not possible to invest directly in an index.

^2.  Ratings shown are the highest rating given by one of the following national rating agencies: S&P, Moody’s or Fitch. Additional information about ratings can be found, respectively, at www.standardandpoors.com, www.moodys.com and www.fitchratings.com. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings categories used by S&P and Fitch; BB, B, CCC/CC/C and D are below investment grade ratings categories used by S&P and Fitch. Aaa, Aa, A and Baa are investment grade ratings categories used by Moody’s; Ba, B, Caa/Ca and C are below investment grade ratings categories used by Moody’s. Ratings categories may include gradations within each category. 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.

11

Barings Total Return Bond Fund 2017 Semi-Annual Report

∎ The Fund remains underweight agency mortgage backed securities (MBS) relative to the Benchmark. During the period, the Fund reduced Federal National Mortgage Association (FNMA) 3.5% coupons in favor of Federal Home Loan Mortgage Corporation (FHLMC) 3.5% and 4.0% coupons, based on relative value.

Describe portfolio positioning at period end.

∎ The Fund was duration and curve neutral relative to the Benchmark.

∎ The largest overweight relative to the Benchmark is the ABS allocation, which represents 19% of the Fund. The allocation to ABS comprises FFELP student loans, a modest allocation to traditional automotive loan collateral, and esoteric collateral that we believe is compelling such as whole business franchise receivables, shipping containers and personal consumer loans, in addition to other subsectors.

∎ Corporate credit represents approximately a 41% allocation versus 31.0% for the Benchmark. Investment grade corporates made up approximately 28%, high yield corporates made up 9.9% of the exposure and USD denominated emerging markets were almost 2.6%. Energy is the largest overweight by 2.9%, as yields are attractive. Positioning is primarily in drillers and pipelines. The food and beverage sector represents the largest underweight by 0.8%. We believe that opportunities remain in select credits based on recommendations from research.

∎ Agency MBS is underweight by 7.4% relative to the Benchmark.

∎ The Fund maintains a 4.7% to structured credit, represented by short weighted average life, AAA-rated collateralized loan obligations.

Describe market and portfolio outlook.

∎ Global growth prospects remain relatively sound. This has pushed government bond yields higher in the short-end of the U.S. Treasury curve as market participants have begun to reappraise future monetary policy expectations. The intermediate to long-end of the curve has flattened, with rates lower than the start of the year.

∎ Risk assets have performed well, suggesting that investors are looking at better global growth. Despite tightening spreads, we believe that opportunities remain in corporate and securitized sectors.

∎ The Fund remains overweight spread sectors, such as corporates and structured products, relative to liquid products, such as governments and agencies, and seeks to add alpha, or return in excess to the Benchmark, by investing in under covered sectors where we have competitive advantages, such as esoteric ABS, CLOs and emerging market corporates.

12

Barings Total Return Bond Fund 2017 Semi-Annual Report

CREDIT QUALITY BREAKDOWN (% OF ASSETS*)

* The percentages shown above represent a percentage of the assets as of December 31, 2017.

PORTFOLIO COMPOSITION (% OF ASSETS*)

* The percentages shown above represent a percentage of the assets as of December 31, 2017.

13

Barings Emerging Markets Debt Blended Total Return Fund 2017 Semi-Annual Report

Investment Objective

The Barings Emerging Markets Debt Blended Total Return Fund (“EMD Blended Total Return Fund” or the “Fund”) seeks to achieve maximum total return, consistent with preservation of capital and prudent investment management, through high current income generation and, where appropriate, capital appreciation.

Portfolio Management Commentary

How did the Fund perform?

∎ As a whole, the Fund’s performance was strong during the second half of 2017; all three sub-strategies – EM corporates, EM sovereign and EM local – turned in positive performance. Most developed market central banks remained dovish, including the European Central Bank, Bank of England and Bank of Japan, however the U.S. Fed increased the short-term rates and commodities were higher during the period.

∎ The Fund reported a net total rate of return for the annual reporting period through December 31, 2017 of 4.81%.¹

What factors influenced performance of the Fund?

∎ For the semi-annual reporting period, the Fund’s positions in the currencies of Brazil, South Africa, Malaysia and Eastern European countries performed well. In addition, corporate holdings aided returns. Key detractors from performance were the Fund’s positions in the Chinese renminbi, Mexican peso, Argentinian peso and Chilean peso.

∎ All EM debt asset classes were supported by higher commodity prices, continued dovish central bank policies from the ECB and Bank of Japan, as well as strong flows into EM debt funds, which saw an additional $48.5 billion of positive flows for the second half of 2017 and $112.8 billion for the full year.

Describe recent portfolio activity.

∎ As a result of overall moderate growth, low inflation and high rates in select EM local markets, the Fund increased its local rates exposure to 47% on expectations that local rates will fall over the next 12 months in countries that are well managed and where inflation is falling. The Fund increased its exposure to South Africa, Russia, Ghana, Argentina and Ukraine. The Fund reduced its corporate holdings.

Describe portfolio positioning at period end.

∎ The Fund finished the semi-annual reporting period, December 31, 2017, with a 47% exposure to emerging markets local debt and currencies, 31% exposure to corporate bonds, 21% exposure to sovereign hard currency bonds and a 1.7% cash position.

∎ The top five countries in the portfolio at the end of the semi-annual reporting period were Mexico (18.1%), Brazil (13.7%), South Africa (11.1%), Argentina (7.9%) and Peru (6.0%). The top five corporate issuers were Perobras (3.5%), Fermaca Enterprises (2.2%), Abengoa Transmission (2.0%), Banco Mercantil de Norte (1.98%) and VTR Finance (1.9%). Overall, the Fund had exposure to 26 countries, 16 corporates and 31 different currencies.

Describe market and portfolio outlook.

∎ Global growth continues to improve as economies adjust and consumption in both developed markets and emerging markets accelerates. We expect continued improvement in global GDP in 2018, with EM leading the way.

^1.  Total return describes the return to an investor of Class Y shares net expense ratio and includes the reinvestment of dividends and capital gains. Past performance is no guarantee of future results and investment returns and principal value of the Funds (or of the investment company) will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance quoted. Call 1.855.439.5459 or visit barings.com for current month end performance. The net asset value (NAV) will fluctuate with market conditions. All returns 1-year or less are cumulative.

14

Barings Emerging Markets Debt Blended Total Return Fund 2017 Semi-Annual Report

∎ Balance of payments and current accounts across EM countries continue to improve. Many economies have made substantial fiscal adjustments given the lower commodity prices, prudent monetary policies and, in some cases, increased tax collection. Stronger growth and significantly lower funding needs, coupled with flows and foreign direct investment (FDI) into stronger countries, will likely remain supportive of currencies and hard currency bonds.

∎ Company fundamentals have improved on the back of economic growth and commodity prices, and leverage is expected to decline. These positive trends may translate into ratings upgrades over the next 12-18 months.

∎ Global trade volumes continue to show signs of recovery, a trend we expect to continue through the upcoming year, providing a positive catalyst for commodity exporters.

∎ We continue to take a constructive view of EM debt as a whole, and expect healthy returns from EM local debt due to moderate growth, lower inflation, and continued fiscal adjustments across many countries. Although sovereign hard currency has tightened significantly, we see select opportunities where spreads continue to overcompensate for defaults.

15

Barings Emerging Markets Debt Blended Total Return Fund 2017 Semi-Annual Report

PORTFOLIO COMPOSITION (% OF ASSETS*)

* The percentages shown above represent a percentage of the assets as of December 31, 2017.

REGIONAL 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 December 31, 2017.

*** CEEMEA: Central Europe, Eastern Europe, Middle East and Africa.

LATAM: Latin America (includes countries in Central and South America).

16

Barings Emerging Markets Local Currency Debt Fund 2017 Semi-Annual Report

Investment Objective

The Barings Emerging Markets Local Currency Debt Fund (“EM Local Debt Fund” or the “Fund”) is to seek long-term total return through investment in a diversified portfolio of emerging markets local currency-denominated debt securities.

Portfolio Management Commentary

How did the Fund perform?

∎ During the second half of 2017, the Fund gained 4.50% and slightly outperformed the J.P. Morgan Government Bond Index Emerging Markets Global Diversified (the “Benchmark”), which returned 4.40% for the same period.¹

What factors influenced performance of the Fund?

∎ For the semi-annual reporting period, the Fund’s positions in South Africa, Turkey, Poland and Malaysia outperformed the Benchmark. The Fund’s currency positioning in Argentina, China, Chile and Mexico detracted from performance.

∎ The Fund turned in strong performance with returns coming from both rates and currencies. EM currencies, overall, are at their strongest levels in years and reflect the significant fiscal adjustments and reforms many countries have made over the past few years. EM local rates have performed well as a result of moderate growth, strong global trade and low inflation across many local markets.

Describe recent portfolio activity.

∎ The Fund increased exposure to Brazil, Russia, South Africa, Argentina and El Salvador, while reducing exposure to Colombia, Hungary, Israel, Czech Republic and Thailand. The Fund also increased its exposure to the Argentinian peso, while paring back exposure to Czech koruna, Mexican peso, Indonesian ringgit and Chinese renminbi. The Fund remains overweight in Eastern European currencies in countries that are experiencing healthy growth and where we expect the currencies to continue appreciating versus the euro.

Describe portfolio positioning at period end.

∎ The Fund finished the semi-annual reporting period, December 31, 2017, with a 90.7% exposure to emerging market bonds and a 9.3% cash position. The Fund had a duration of 2.13 years greater than the Benchmark and 127% exposure to EM currencies, while underweight 27% to developed market currencies.

∎ The top five countries in the portfolio at the end of the semi-annual reporting period (+/- years duration versus the Benchmark) are Brazil (+.88 years) South Africa (+.73 years), Mexico (+.44 years), Colombia (+.39 years) and Malaysia (+.39 years). Overall, the Fund has exposure to 19 different countries and 34 different currencies.

Describe market and portfolio outlook.

∎ We remain optimistic that some emerging markets headwinds are in the process of becoming tailwinds for many economies. EM debt flows, a former headwind, have been positive over the past two years, for a total of $155.5 billion.

^1.  Total return describes the return to an investor of Class Y shares and includes the reinvestment of dividends and capital gains. Past performance is no guarantee of future results and investment returns and principal value of the Funds (or of the investment company) will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance quoted. Call 1.855.439.5459 or visit barings.com for current month end performance. The net asset value (NAV) will fluctuate with market conditions. All returns 1-year or less are cumulative. J.P. Morgan GBI-EM Global Diversified consists of regularly traded, fixed-rate, domestic currency government bonds which international investors can readily access. The maximum weight to any country in the index is capped at 10%. The performance of the index does not reflect the deduction of expenses associated with a fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of the fund expenses, including sales charges if applicable. An individual cannot invest directly in an index. Indices are unmanaged. It is not possible to invest directly in an index.

17

Barings Emerging Markets Local Currency Debt Fund 2017 Semi-Annual Report

∎ Global trade volumes continue to show signs of recovery, a trend we expect to continue through the upcoming year, providing a positive catalyst for commodity exporters.

∎ Global inflation may rise, but will likely remain relatively subdued and manageable over the next several years. Due to the reduced inflationary pressures, we expect to see lower overall interest rates in countries with floating currencies and credible central bank policies, where nominal yields offer significant compensation for risk.

∎ The portfolio continues to add to constructive positioning on select European and Latin American currencies, less so on Asian currencies, while maintaining a watchful eye on commodity prices.

∎ The portfolio continues to be positioned in select rates where inflation is falling along with narrowing current account deficits. A picture of global disinflation should remain favorable for emerging markets local debt and the Fund.

18

Barings Emerging Markets Local Currency Debt Fund 2017 Semi-Annual Report

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 December 31, 2017.

CURRENCY 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 December 31, 2017.

19

Barings Emerging Markets Local Currency Debt Fund 2017 Semi-Annual Report

CONTRIBUTION TO DURATION (IN YEARS**)

** The values shown above represent the contribution to duration, in years, of the assets as of December 31, 2017.

20

Barings Global High Yield Fund 2017 Semi-Annual Report

Investment Objective

The investment objective of the Barings Global High Yield Fund (“Global High Yield Fund” or the “Fund”) is to provide high current income generation and, where appropriate, capital appreciation.

Portfolio Management Commentary

How did the Fund perform?

∎ The Fund reported a net total return for the six month reporting period through December 31, 2017 of 2.06% and underperformed the Bank of America Merrill Lynch Non-Financial Developed Markets High Yield Constrained Index (the “Benchmark”), which returned 2.55%.¹

What factors influenced performance of the Fund?

∎ The global high yield bond market finished 2017 with positive performance driven by continued improvement in corporate fundamentals, stability in central bank policies and a firm backdrop for commodity prices.

∎ In general, the BB segment of the market outperformed the B ratings category over the past six months. As a result, the Fund’s underweight to BB assets relative to the benchmark and overweight to B assets were performance detractors. Prudent credit selection within both categories benefitted performance though. While the Fund’s overweight to CCC assets was a benefit to performance, credit selection within CCC assets was a main detractor to performance, primarily due to a couple of credits experiencing mild weakness.

∎ Across industries, credit selection was the primary detractor to performance relative to the benchmark specifically within the diversified conglomerate and manufacturing and oil and gas sectors. Absent idiosyncratic credit events in these two sectors, the Fund’s performance would have been more aligned with Benchmark performance.

∎ From a geographical perspective, the Fund’s positioning across the U.S. and European markets did not have a significant impact on performance as the Fund’s regional exposure relative to the Benchmark was the same. Credit selection within the two regions, however, was more mixed, with U.S.-based credits causing a drag on performance, specifically within the diversified conglomerate and manufacturing and oil and gas sectors. Prudent credit selection within the European region was a positive contributor to performance.

Describe recent portfolio activity.

∎ The Fund currently favors the B and CCC subsets of the global high yield bond market and select opportunities in the BB category. With default expectations remaining low and corporate fundamentals generally healthy, we have found better relative value opportunities in B and CCC assets. Over the last six months, the Fund’s allocation shifted slightly by increasing exposure to CCC rated credits and reducing its allocation to B rated credits.

∎ The Fund’s exposure to the oil and gas sector increased by approximately 1% over the past six months. In general, investment opportunities in this sector have become less attractive based on the ongoing rally and the Fund will seek to reduce credit risk if prices continue to improve. The Fund’s exposure to telecommunications decreased over the period with a focus on a select group of wireless companies based on attractive relative value characteristics, while generally avoiding wireline companies due to the poor industry fundamentals and secular changes taking place. Furthermore, the healthcare, education and childcare and the mining, steel, iron and non-precious metals sectors both experienced modest increases in exposure over the period.

^1.  Total return describes the return to an investor of Class Y shares and includes the reinvestment of dividends and capital gains. Past performance is no guarantee of future results and investment returns and principal value of the Funds (or of the investment company) will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance quoted. Call 1.855.439.5459 or visit barings.com for current month end performance. The net asset value (NAV) will fluctuate with market conditions. All returns 1-year or less are cumulative. The Bank of America Merrill Lynch Non-Financial Developed Markets High Yield Constrained Index contains all securities in the Bank of America Merrill Lynch Global High Yield Index that are non-financials and from developed markets countries, but caps issuer exposure at 2%. Developed markets is defined as an FX-G10 member, a Western European nation, or a territory of the U.S. or a Western European nation. Indices are unmanaged. It is not possible to invest directly in an index.

21

Barings Global High Yield Fund 2017 Semi-Annual Report

∎ The Fund’s geographical allocations shifted more in favor of the U.S. market over the last six months by approximately 5% and reduced exposure to European assets. The Fund is more aligned with the regional breakdown of the Benchmark, as the U.S. and European markets have offered a similar investment opportunity set and neither market has experienced significant dislocation.

Describe portfolio positioning at period end.

∎ On a traded basis, the Fund finished 2017 with a 27.8% weighting to senior secured high yield bonds and a 68.3% weighting to senior unsecured high yield bonds. The balance of the portfolio was invested in senior secured loans at 1.0%, unsecured loans at 0.9%, and cash and accrued income at 2.0%.

∎ From an industry perspective, the Fund remains diversified across a number of Moody’s-based industries, with higher concentrations in oil and gas (14.8%), healthcare, education, and childcare (9.1%) and mining, steel, iron and non-precious metals (8.6%) as of December 31, 2017.

∎ In terms of portfolio credit quality at the end of 2017, the Fund had the following weighting breakdown: 4.6% in BBB, 28.0% in BB, 45.7% in B, 18.8% in CCC and below and 2.0% in cash and accrued income. A small portion of the portfolio (0.9%) is designated as not publicly rated and is not rated by S&P, Moody’s or Fitch.²

∎ The top five countries in the portfolio, as of December 31, 2017, are represented by the U.S. (73.9%), the U.K. (11.8%), Ghana (2.7%), France (1.9%) and Canada (1.8%). Overall, the Fund had exposure to 12 countries and supports our focus on building a well-diversified portfolio of global high yield bonds.

Describe market and portfolio outlook.

∎ As the global high yield bond market has delivered strong returns over the last two years, some investors may believe that high yield valuations appear rich. While headline spreads for global high yield bonds are at the lowest levels since the post-financial crisis years, spreads have been lower in previous low-default environments.

∎ In the current environment, we are seeing pockets of opportunity for strong risk-adjusted returns in B assets, which can offer a substantial spread premium over BB assets, with considerably lower duration and higher levels of secured assets.

∎ We believe the stable to improving fundamentals of high yield issuers, expected low defaults, and the strong technical backdrop could cause spreads to further tighten. Looking ahead, the pace of new deal issuance (supply) and fund flows (demand) could have a significant impact on spreads in 2018.

^2.  Ratings shown are the highest rating given by one of the following national rating agencies: S&P, Moody’s or Fitch. Additional information about ratings can be found, respectively, at www.standardandpoors.com, www.moodys.com and www.fitchratings.com. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings categories used by S&P and Fitch; BB, B, CCC/CC/C and D are below investment grade ratings categories used by S&P and Fitch. Aaa, Aa, A and Baa are investment grade ratings categories used by Moody’s; Ba, B, Caa/Ca and C are below investment grade ratings categories used by Moody’s. Ratings categories may include gradations within each category. 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.

22

Barings Global High Yield Fund 2017 Semi-Annual Report

CREDIT QUALITY COMPOSITION (% OF ASSETS*)

* The percentages shown above represent a percentage of the assets as of December 31, 2017.

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 December 31, 2017.

23

Barings U.S. High Yield Fund 2017 Semi-Annual Report

Investment Objective

The investment objective of the Barings U.S. High Yield Fund (“U.S. High Yield Fund” or the “Fund”) is to seek a high level of total return, with an emphasis on current income, by investing primarily in high yield debt and related securities.

Portfolio Management Commentary

How did the Fund perform?

∎ The Fund reported a net total return for the six month reporting period through December 31, 2017 of 1.71% and underperformed the Bloomberg Barclays U.S. Corporate High Yield Index, which returned 2.45%.¹

What factors influenced performance of the Fund?

∎ The U.S. high yield bond market finished 2017 with positive performance driven by continued improvement in corporate fundamentals, stability in central bank policies and a firm backdrop for commodity prices.

∎ In general, the BB segment of the market outperformed the B and CCC categories over the last six months. As a result, the Fund’s underweight to BB assets relative to the Benchmark and overweight to the lower-tiered categories were performance detractors. Credit selection within CCC assets was also a detractor, primarily due to a couple of credits experiencing mild weakness.

∎ Across industries, credit selection was the primary detractor to performance relative to the Benchmark, specifically within the diversified conglomerate and manufacturing and oil and gas sectors. Absent idiosyncratic credit events in these two sectors, the Fund’s performance would have been more aligned with Benchmark performance.

Describe recent portfolio activity.

∎ The Fund currently favors the B and CCC subsets of the U.S. high yield bond market and select opportunities in the BB category. With default expectations remaining low and corporate fundamentals generally healthy, we have found better relative value opportunities in B and CCC assets. Over the past six months, the Fund’s allocation shifted slightly by increasing exposure to CCC and BB credits while reducing its allocation to B credits.

∎ The Fund’s exposure to the oil and gas sector decreased by approximately 1% over the last six months. In general, investment opportunities in this sector have become less attractive based on the ongoing rally, and the Fund will seek to reduce credit risk if prices continue to improve. The Fund’s exposure to telecommunications decreased over the period, with a focus on a select group of wireless companies based on attractive relative value characteristics while generally avoiding wireline companies due to the poor industry fundamentals and secular changes taking place. Furthermore, the mining, steel, iron and non-precious metals sector experienced a modest increase in exposure over the period, while the healthcare, education and childcare sector slightly decreased.

Describe portfolio positioning at period end.

∎ On a traded basis, the Fund finished the period ending December 31, 2017 with a 93.2% weighting to high yield bonds. The remaining balance of the portfolio was invested in senior secured loans at 1.7%, unsecured loans at 0.8%, and cash and accrued income at 4.3%.

∎ From a sector perspective, the Fund remains diversified across a number of Moody’s-based industries, with higher concentrations in oil and gas (16.7%), healthcare, education and childcare (8.4%) and mining, steel, iron and non-precious metals (7.4%) as of December 31, 2017.

^1.  Total return describes the return to an investor of Class Y shares and includes the reinvestment of dividends and capital gains. Past performance is no guarantee of future results and investment returns and principal value of the Funds (or of the investment company) will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance quoted. Call 1.855.439.5459 or visit barings.com for current month end performance. The net asset value (NAV) will fluctuate with market conditions. All returns 1-year or less are cumulative. The Bloomberg Barclays U.S. Corporate High Yield Index covers the universe of fixed-rate, non-investment grade debt focusing on corporate USD denominated and non-convertible debt. Indices are unmanaged. It is not possible to invest directly in an index.

24

Barings U.S. High Yield Fund 2017 Semi-Annual Report

∎ In terms of portfolio credit quality, as of December 31, 2017 the Fund had the following weighting breakdown: 3.9% in BBB, 34.6% in BB, 40.3% in B, 16.1% in CCC and below, and cash and accrued income at 4.3%. A small portion of the portfolio (0.8%) is designated as not publicly rated and is not rated by S&P, Moody’s or Fitch.²

Describe market and portfolio outlook.

∎ As the U.S. high yield bond market has delivered strong returns over the last two years, some investors may believe that high yield valuations appear rich. While headline spreads for high yield bonds are at the lowest levels since the post-financial crisis years, spreads have been lower in previous low-default environments.

∎ In the current environment, we are seeing pockets of opportunity for strong risk-adjusted returns in B assets, which can offer a substantial spread premium over BB assets, with considerably lower duration and higher levels of secured assets.

∎ We believe the stable to improving fundamentals of high yield issuers, expected low defaults, and the strong technical backdrop could cause spreads to further tighten. Looking ahead, the pace of new deal issuance (supply) and fund flows (demand) could have a significant impact on spreads in 2018.

^2.  Ratings shown are the highest rating given by one of the following national rating agencies: S&P, Moody’s or Fitch. Additional information about ratings can be found, respectively, at www.standardandpoors.com, www.moodys.com and www.fitchratings.com. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings categories used by S&P and Fitch; BB, B, CCC/CC/C and D are below investment grade ratings categories used by S&P and Fitch. Aaa, Aa, A and Baa are investment grade ratings categories used by Moody’s; Ba, B, Caa/Ca and C are below investment grade ratings categories used by Moody’s. Ratings categories may include gradations within each category. 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.

25

Barings U.S. High Yield Fund 2017 Semi-Annual Report

CREDIT QUALITY COMPOSITION (% OF ASSETS*)

* The percentages shown above represent a percentage of the assets as of December 31, 2017.

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 December 31, 2017.

26

Barings Funds Trust 2017 Semi-Annual Report

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27

Barings Funds Trust 2017 Semi-Annual Report

SHAREHOLDER EXPENSES (UNAUDITED)

As a shareholder of Barings Global Floating Rate Fund, Barings Global Credit Income Opportunities Fund, Barings Active Short Duration Bond Fund, Barings Total Return Bond Fund, Barings Emerging Markets Debt Blended Total Return Fund, Barings Emerging Markets Local Currency Debt Fund, Barings Global High Yield Fund or Barings U.S. High Yield 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 July 1, 2017 to December 31, 2017.

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 Expense 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 Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s 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.

Barings Global Floating Rate Fund

	EXPENSE RATIO			BEGINNING AMOUNT		ENDING VALUE		AVERAGE VALUE		OPERATING EXPENSE INCURRED*
Class A
Actual		0.99	%	$	1,000.00	$	1,021.20	$	1,010.60	$	5.04
Hypothetical		0.99	%		1,000.00		1,020.20		1,010.10		5.04
Class C
Actual		1.74	%		1,000.00		1,017.40		1,008.70		8.85
Hypothetical		1.74	%		1,000.00		1,016.40		1,008.20		8.84
Class I
Actual		0.75	%		1,000.00		1,022.50		1,011.25		3.82
Hypothetical		0.75	%		1,000.00		1,021.40		1,010.70		3.82
Class Y
Actual		0.75	%		1,000.00		1,022.60		1,011.30		3.82
Hypothetical		0.75	%		1,000.00		1,021.40		1,010.70		3.82

* 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 184/365.

28

Barings Funds Trust 2017 Semi-Annual Report

SHAREHOLDER EXPENSES (UNAUDITED) (CONTINUED)

Barings Global Credit Income Opportunities Fund

	EXPENSE RATIO			BEGINNING AMOUNT		ENDING VALUE		AVERAGE VALUE		OPERATING EXPENSE INCURRED*
Class A
Actual		1.20	%	$	1,000.00	$	1,019.50	$	1,009.75	$	6.11
Hypothetical		1.20	%		1,000.00		1,019.20		1,009.60		6.11
Class C
Actual		1.95	%		1,000.00		1,015.70		1,007.85		9.91
Hypothetical		1.95	%		1,000.00		1,015.40		1,007.70		9.91
Class I
Actual		0.95	%		1,000.00		1,020.80		1,010.40		4.84
Hypothetical		0.95	%		1,000.00		1,020.40		1,010.20		4.84
Class Y
Actual		0.95	%		1,000.00		1,020.80		1,010.40		4.84
Hypothetical		0.95	%		1,000.00		1,020.40		1,010.20		4.84

* 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 184/365.

Barings Active Short Duration Bond Fund

	EXPENSE RATIO			BEGINNING AMOUNT		ENDING VALUE		AVERAGE VALUE		OPERATING EXPENSE INCURRED*
Class A
Actual		0.65	%	$	1,000.00	$	1,000.00	$	1,000.00	$	3.28
Hypothetical		0.65	%		1,000.00		1,021.90		1,010.95		3.31
Class C
Actual		0.90	%		1,000.00		1,000.00		1,000.00		4.54
Hypothetical		0.90	%		1,000.00		1,020.70		1,010.35		4.58
Class I
Actual		0.40	%		1,000.00		1,000.00		1,000.00		2.02
Hypothetical		0.40	%		1,000.00		1,023.20		1,011.60		2.04
Class Y
Actual		0.40	%		1,000.00		1,000.00		1,000.00		2.02
Hypothetical		0.40	%		1,000.00		1,023.20		1,011.60		2.04

* 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 184/365.

29

Barings Funds Trust 2017 Semi-Annual Report

SHAREHOLDER EXPENSES (UNAUDITED) (CONTINUED)

Barings Total Return Bond Fund

	EXPENSE RATIO**			BEGINNING AMOUNT		ENDING VALUE		AVERAGE VALUE		OPERATING EXPENSE INCURRED*
Class A
Actual		0.80	%	$	1,000.00	$	1,015.10	$	1,007.55	$	4.06
Hypothetical		0.80	%		1,000.00		1,021.20		1,010.60		4.08
Class C
Actual		1.54	%		1,000.00		1,011.30		1,005.65		7.81
Hypothetical		1.54	%		1,000.00		1,017.40		1,008.70		7.83
Class I
Actual		0.55	%		1,000.00		1,016.40		1,008.20		2.80
Hypothetical		0.55	%		1,000.00		1,022.40		1,011.20		2.80
Class Y
Actual		0.55	%		1,000.00		1,016.40		1,008.20		2.80
Hypothetical		0.55	%		1,000.00		1,022.40		1,011.20		2.80

* 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 184/365.

** Expense ratios (as disclosed in the table) do not include the expenses of any underlying funds in which the Fund invests. The annualized expense ratios, as stated in the fee table of the Prospectus, may differ from the expense ratios disclosed in this report.

Barings Emerging Markets Debt Blended Total Return Fund

	EXPENSE RATIO			BEGINNING AMOUNT		ENDING VALUE		AVERAGE VALUE		OPERATING EXPENSE INCURRED*
Class A
Actual		1.13	%	$	1,000.00	$	1,046.50	$	1,023.25	$	5.83
Hypothetical		1.13	%		1,000.00		1,019.50		1,009.75		5.75
Class C
Actual		1.88	%		1,000.00		1,042.90		1,021.45		9.68
Hypothetical		1.88	%		1,000.00		1,015.70		1,007.85		9.55
Class I
Actual		0.89	%		1,000.00		1,048.10		1,024.05		4.59
Hypothetical		0.89	%		1,000.00		1,020.70		1,010.35		4.53
Class Y
Actual		0.89	%		1,000.00		1,048.10		1,024.05		4.59
Hypothetical		0.89	%		1,000.00		1,020.70		1,010.35		4.53

* 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 184/365.

30

Barings Funds Trust 2017 Semi-Annual Report

SHAREHOLDER EXPENSES (UNAUDITED) (CONTINUED)

Barings Emerging Markets Local Currency Debt Fund

	EXPENSE RATIO			BEGINNING AMOUNT		ENDING VALUE		AVERAGE VALUE		OPERATING EXPENSE INCURRED*
Class A
Actual		1.02	%	$	1,000.00	$	1,043.80	$	1,021.90	$	5.25
Hypothetical		1.02	%		1,000.00		1,020.10		1,010.05		5.19
Class C
Actual		1.66	%		1,000.00		1,039.90		1,019.95		8.54
Hypothetical		1.66	%		1,000.00		1,016.80		1,008.40		8.44
Class I
Actual		0.67	%		1,000.00		1,044.90		1,022.45		3.45
Hypothetical		0.67	%		1,000.00		1,021.80		1,010.90		3.41
Class Y
Actual		0.77	%		1,000.00		1,045.00		1,022.50		3.97
Hypothetical		0.77	%		1,000.00		1,021.30		1,010.65		3.92

* 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 184/365.

Barings Global High Yield Fund

	EXPENSE RATIO			BEGINNING AMOUNT		ENDING VALUE		AVERAGE VALUE		OPERATING EXPENSE INCURRED*
Class A
Actual		1.05	%	$	1,000.00	$	1,019.30	$	1,009.65	$	5.34
Hypothetical		1.05	%		1,000.00		1,019.90		1,009.95		5.35
Class C
Actual		1.80	%		1,000.00		1,015.50		1,007.75		9.14
Hypothetical		1.80	%		1,000.00		1,016.10		1,008.05		9.15
Class I
Actual		0.80	%		1,000.00		1,020.60		1,010.30		4.07
Hypothetical		0.80	%		1,000.00		1,021.20		1,010.60		4.08
Class Y
Actual		0.80	%		1,000.00		1,020.60		1,010.30		4.07
Hypothetical		0.80	%		1,000.00		1,021.20		1,010.60		4.08

* 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 184/365.

31

Barings Funds Trust 2017 Semi-Annual Report

SHAREHOLDER EXPENSES (UNAUDITED) (CONTINUED)

Barings U.S. High Yield Fund

	EXPENSE RATIO			BEGINNING AMOUNT		ENDING VALUE		AVERAGE VALUE		OPERATING EXPENSE INCURRED*
Class A
Actual		1.00	%	$	1,000.00	$	1,015.40	$	1,007.70	$	5.08
Hypothetical		1.00	%		1,000.00		1,020.20		1,010.10		5.09
Class C
Actual		1.75	%		1,000.00		1,012.00		1,006.00		8.87
Hypothetical		1.75	%		1,000.00		1,016.40		1,008.20		8.89
Class I
Actual		0.75	%		1,000.00		1,017.10		1,008.55		3.81
Hypothetical		0.75	%		1,000.00		1,021.40		1,010.70		3.82
Class Y
Actual		0.75	%		1,000.00		1,017.10		1,008.55		3.81
Hypothetical		0.75	%		1,000.00		1,021.40		1,010.70		3.82

* 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 184/365.

32

Barings Funds Trust 2017 Semi-Annual Report

BARINGS FUNDS TRUST

FINANCIAL REPORT

Statements of Assets and Liabilities	34
Statements of Operations	38
Statements of Changes in Net Assets	42
Financial Highlights	46
Schedules of Investments	78-175
Notes to Financial Statements	176-221

33

Barings Funds Trust 2017 Semi-Annual Report

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2017 (Unaudited)

	BARINGS GLOBAL FLOATING RATE FUND		BARINGS GLOBAL CREDIT INCOME OPPORTUNITIES FUND		BARINGS ACTIVE SHORT DURATION BOND FUND		BARINGS TOTAL RETURN BOND FUND
Assets
Investments, at fair value (cost $215,692,000, $179,160,615, $420,951,083 and $32,674,622, respectively)	$	214,593,334	$	178,819,802	$	420,441,867	$	33,032,889
Investments in affiliates, at fair value (cost $0, $0, $0 and $2,533,202, respectively)		–		–		–		2,639,234
Cash		–		310,000		70,931		4,023
Cash collateral held		–		260,000		–		–
Foreign currency, at value (cost $739,931, $606,248, $0 and $0, respectively)		743,866		615,571		–		–
Receivable for investments sold		2,233,910		606,988		–		2,907,939
Receivable for Fund shares sold		78,730		62,116		1,895,728		14,976
Interest receivable		1,344,523		1,979,723		2,048,724		181,505
Receivable from adviser (see Note 3)		–		–		–		6,011
Receivable for variation margin on open futures contracts		–		–		–		4,094
Foreign tax reclaims receivable		–		3,878		–		–
Unrealized appreciation on forward foreign currency exchange contracts		13,444		4,297		–		11,963
Prepaid expenses		36,104		46,143		24,944		17,355
Total assets		219,043,911		182,708,518		424,482,194		38,819,989
Liabilities
Payable for investments purchased		60,053		78,635		–		350,115
Payable for TBA and when-issued securities purchased		11,850,335		6,777,920		–		6,266,721
Payable for Fund shares repurchased		361,351		151,354		1,742,540		2,017
Swap contracts, at fair value (up-front net premiums received of $0, $0, $21,113 and $5,086, respectively)		–		–		76,086		19,021
Payable for variation margin on open futures contracts		–		–		46,608		–
Investment advisory fee payable (see Note 3)		62,092		84,254		49,659		–
Directors’ fees payable		10,951		9,396		12,858		6,806
Cash collateral Due to Broker		–		460,000		530,000		–
Distribution fees payable		17,950		13,692		34,613		218
Dividends payable		57,341		285,889		74,998		120,980
Unrealized depreciation on forward foreign currency exchange contracts		379,471		288,389		–		10,487
Accrued expenses and other liabilities		265,236		194,999		317,539		59,432
Total liabilities		13,064,780		8,344,528		2,884,901		6,835,797
Total net assets	$	205,979,131	$	174,363,990	$	421,597,293	$	31,984,192

See accompanying Notes to the Financial Statements.

34

Barings Funds Trust 2017 Semi-Annual Report

STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)

December 31, 2017 (Unaudited)

	BARINGS GLOBAL FLOATING RATE FUND			BARINGS GLOBAL CREDIT INCOME OPPORTUNITIES FUND			BARINGS ACTIVE SHORT DURATION BOND FUND			BARINGS TOTAL RETURN BOND FUND
Composition of net assets
Shares of beneficial interest outstanding (par value $0.00001 per share), unlimited number of shares authorized	$	216		$	185		$	424		$	32
Additional paid-in capital		210,783,732			177,573,642			422,186,118			31,752,362
Undistributed net investment loss		(1,304,091	)		(1,245,390	)		(62,959	)		(70,588	)
Accumulated net realized loss		(1,983,358	)		(1,286,182	)		(285,435	)		(139,466	)
Net unrealized appreciation (depreciation)		(1,517,368	)		(678,265	)		(240,855	)		441,852
Total net assets	$	205,979,131		$	174,363,990		$	421,597,293		$	31,984,192
Class A
Net assets applicable to outstanding shares	$	52,608,735		$	33,532,457		$	160,489,443		$	217,639
Shares of beneficial interest outstanding		5,521,291			3,552,074			16,126,560			21,588
Net asset value per share outstanding	$	9.53		$	9.44		$	9.95		$	10.08
Maximum offering price per share outstanding (Net asset value plus sales charge of 3.00%, 4.00%, 0.00% and 4.00%, respectively)	$	9.82		$	9.83		$	9.95		$	10.50
Class C
Net assets applicable to outstanding shares	$	7,936,322		$	7,970,743		$	871,386		$	202,233
Shares of beneficial interest outstanding		835,950			845,301			87,617			20,061
Net asset value per share outstanding	$	9.49		$	9.43		$	9.95		$	10.08
Class I
Net assets applicable to outstanding shares	$	21,738,300		$	22,075,183		$	301,749		$	12,454,996
Shares of beneficial interest outstanding		2,277,217			2,338,810			30,319			1,235,482
Net asset value per share outstanding	$	9.55		$	9.44		$	9.95		$	10.08
Class Y
Net assets applicable to outstanding shares	$	123,695,774		$	110,785,607		$	259,934,715		$	19,109,324
Shares of beneficial interest outstanding		12,961,789			11,737,456			26,137,914			1,895,492
Net asset value per share outstanding	$	9.54		$	9.44		$	9.94		$	10.08

See accompanying Notes to the Financial Statements.

35

Barings Funds Trust 2017 Semi-Annual Report

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2017 (Unaudited)

	BARINGS EMERGING MARKETS DEBT BLENDED TOTAL RETURN FUND			BARINGS EMERGING MARKETS LOCAL CURRENCY DEBT FUND			BARINGS GLOBAL HIGH YIELD FUND			BARINGS U.S. HIGH YIELD FUND
Assets
Investments, at fair value (cost $10,619,772, $19,671,219, $25,937,393 and $32,310,970, respectively)	$	11,151,562		$	20,100,602		$	26,228,211		$	32,504,376
Cash collateral held		–			70,000			–			–
Foreign currency, at value (cost $5,849, $7,344, $7,149 and $0, respectively)		5,898			7,439			7,218			–
Receivable for investments sold		–			–			656			656
Interest receivable		194,913			396,118			442,311			510,115
Receivable from adviser (see Note 3)		9,146			7,393			469			–
Cash collateral held at broker on open future contracts		8,140			–			–			–
Foreign tax reclaims receivable		–			2,097			2,744			297
Variation margin receivable on open swap contracts		–			8,925			–			–
Unrealized appreciation on forward foreign currency exchange contracts		166,761			247,402			8,585			–
Prepaid expenses		15,986			15,951			16,965			17,206
Total assets		11,552,406			20,855,927			26,707,159			33,032,650
Liabilities
Payable for Fund shares repurchased		50,877			342,534			1,648			11,054
Due to custodian		–			433			–			–
Swap contracts, at fair value (up-front net premiums paid of $2,245, $0, $0 and $0, respectively)		54,656			190			–			–
Payable for variation margin on open futures contracts		875			–			–			–
Investment advisory fee payable (see Note 3)		–			–			–			1,799
Directors’ fees payable		6,297			6,112			6,793			6,926
Distribution fees payable		327			162			231			601
Dividends payable		54,562			36,421			130,691			136,253
Unrealized depreciation on forward foreign currency exchange contracts		234,829			359,744			9,528			–
Accrued expenses and other liabilities		46,996			43,820			59,784			62,476
Total liabilities		449,419			789,416			208,675			219,109
Total net assets	$	11,102,987		$	20,066,511		$	26,498,484		$	32,813,541
Composition of net assets
Shares of beneficial interest outstanding (par value $0.00001 per share), unlimited number of shares authorized	$	11		$	19		$	26		$	32
Additional paid-in capital		10,677,381			19,707,035			26,307,678			32,506,788
Undistributed net investment loss		(56,185	)		(56,851	)		(134,955	)		(95	)
Accumulated net realized gain		81,402			125,734			34,049			113,410
Net unrealized appreciation		400,378			290,574			291,686			193,406
Total net assets	$	11,102,987		$	20,066,511		$	26,498,484		$	32,813,541

See accompanying Notes to the Financial Statements.

36

Barings Funds Trust 2017 Semi-Annual Report

STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)

December 31, 2017 (Unaudited)

	BARINGS EMERGING MARKETS DEBT BLENDED TOTAL RETURN FUND		BARINGS EMERGING MARKETS LOCAL CURRENCY DEBT FUND		BARINGS GLOBAL HIGH YIELD FUND		BARINGS U.S. HIGH YIELD FUND
Class A
Net assets applicable to outstanding shares	$	620,510	$	333,419	$	107,833	$	2,403,811
Shares of beneficial interest outstanding		59,444		30,903		10,686		237,128
Net asset value per share outstanding	$	10.44	$	10.79	$	10.09	$	10.14
Maximum offering price per share outstanding (Net asset value plus sales charge of 4.00%)	$	10.88	$	11.24	$	10.51	$	10.56
Class C
Net assets applicable to outstanding shares	$	219,857	$	107,881	$	243,171	$	114,097
Shares of beneficial interest outstanding		21,058		10,000		24,095		11,257
Net asset value per share outstanding	$	10.44	$	10.79	$	10.09	$	10.14
Class I
Net assets applicable to outstanding shares	$	5,013,282	$	7,638,838	$	12,513,182	$	15,207,650
Shares of beneficial interest outstanding		480,156		708,165		1,240,000		1,500,279
Net asset value per share outstanding	$	10.44	$	10.79	$	10.09	$	10.14
Class Y
Net assets applicable to outstanding shares	$	5,249,338	$	11,986,373	$	13,634,298	$	15,087,983
Shares of beneficial interest outstanding		502,763		1,111,047		1,351,083		1,488,622
Net asset value per share outstanding	$	10.44	$	10.79	$	10.09	$	10.14

See accompanying Notes to the Financial Statements.

37

Barings Funds Trust 2017 Semi-Annual Report

STATEMENTS OF OPERATIONS

For the Six Months Ended December 31, 2017 (Unaudited)

	BARINGS GLOBAL FLOATING RATE FUND			BARINGS GLOBAL CREDIT INCOME OPPORTUNITIES FUND			BARINGS ACTIVE SHORT DURATION BOND FUND			BARINGS TOTAL RETURN BOND FUND
Investment Income
Interest income (net of withholding tax of $0, $0, $1,193 and $35, respectively)	$	5,437,835		$	5,308,525		$	4,766,731		$	425,113
Dividends from affiliated securities		–			–			–			157,494
Other income		115,327			15,126			1,690			400
Total investment income		5,553,162			5,323,651			4,768,421			583,007
Operating Expenses
Advisory fees		659,624			622,445			649,994			63,349
12b-1 distribution and servicing plan
Class A		63,225			39,549			174,065			275
Class C		40,482			35,727			1,642			1,023
Administrator fees		136,185			103,806			210,580			29,928
Custody fees		95,773			77,429			159,495			28,469
Professional fees		51,569			44,407			38,825			18,525
Transfer agent fees		14,109			19,675			23,455			10,928
Directors’ fees		26,584			22,671			36,344			13,125
Registration fees		49,920			42,677			65,642			24,191
Printing and mailing expenses		13,847			10,032			17,888			2,243
Interest expense		–			–			222			22
Other operating expenses		15,700			12,663			23,851			4,320
Total operating expenses		1,167,018			1,031,081			1,402,003			196,398
Reimbursement of expenses
Class A		(76,283	)		(32,361	)		(176,917	)		(3,121	)
Class C		(15,321	)		(9,579	)		(4,235	)		(3,064	)
Class I		(32,986	)		(22,794	)		(3,665	)		(41,080	)
Class Y		(183,082	)		(102,641	)		(298,617	)		(60,714	)
Net operating expenses		859,346			863,706			918,569			88,419
Net investment income		4,693,816			4,459,945			3,849,852			494,588

See accompanying Notes to the Financial Statements.

38

Barings Funds Trust 2017 Semi-Annual Report

STATEMENTS OF OPERATIONS (CONTINUED)

For the Six Months Ended December 31, 2017 (Unaudited)

	BARINGS GLOBAL FLOATING RATE FUND			BARINGS GLOBAL CREDIT INCOME OPPORTUNITIES FUND			BARINGS ACTIVE SHORT DURATION BOND FUND			BARINGS TOTAL RETURN BOND FUND
Realized and Unrealized Gains (Losses) on Investments
Net realized gain (loss) on investments		(377,559	)		824,310			(128,025	)		28,312
Net realized gain (loss) on forward foreign currency exchange contracts		(995,150	)		(909,532	)		–			6,153
Net realized gain (loss) on foreign currency and translation		(41,926	)		(11,853	)		–			2
Net realized gain on futures contracts		–			–			135,097			(8,197	)
Net realized gain (loss) on swap contracts		–			–			(19,908	)		(3,828	)
Net realized gain (loss)		(1,414,635	)		(97,075	)		(12,836	)		22,442
Net change in unrealized appreciation (depreciation) on investments		1,157,966			(1,007,386	)		(1,355,354	)		120,101
Net change in unrealized appreciation (depreciation) on unfunded loan commitments		(5,000	)		(4,051	)		–			–
Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts		(58,509	)		(23,806	)		–			(770	)
Net change in unrealized appreciation (depreciation) on foreign currency and translation		7,716			(50,818	)		–			–
Change in net unrealized appreciation (depreciation) on affiliates		–			–			–			(113,346	)
Net change in unrealized appreciation on futures contracts		–			–			72,952			(14,288	)
Net change in unrealized appreciation on swap contracts		–			–			(7,153	)		(2,142	)
Net change in unrealized appreciation (depreciation)		1,102,173			(1,086,061	)		(1,289,555	)		(10,445	)
Net realized and unrealized gains (losses) on investments		(312,462	)		(1,183,136	)		(1,302,391	)		11,997
Net increase in net assets resulting from operations	$	4,381,354		$	3,276,809		$	2,547,461		$	506,585

See accompanying Notes to the Financial Statements.

39

Barings Funds Trust 2017 Semi-Annual Report

STATEMENTS OF OPERATIONS

For the Six Months Ended December 31, 2017 (Unaudited)

	BARINGS EMERGING MARKETS DEBT BLENDED TOTAL RETURN FUND			BARINGS EMERGING MARKETS LOCAL CURRENCY DEBT FUND			BARINGS GLOBAL HIGH YIELD FUND			BARINGS U.S. HIGH YIELD FUND
Investment Income
Interest income (net of withholding tax of $1,714, $7,687, $0 and $0, respectively)	$	364,133		$	268,618		$	972,417		$	1,173,735
Total investment income		364,133			268,618			972,417			1,173,735
Operating Expenses
Advisory fees		42,807			33,761			85,193			93,105
12b-1 distribution and servicing plan
Class A		617			295			140			3,250
Class C		1,145			548			1,245			594
Administrator fees		17,302			13,752			28,667			32,234
Custody fees		17,246			12,592			20,633			22,814
Professional fees		21,555			21,011			19,812			17,784
Transfer agent fees		13,524			9,735			10,877			9,829
Directors’ fees		11,519			11,067			12,960			13,390
Registration fees		23,706			23,767			23,964			24,137
Printing and mailing expenses		1,102			598			2,224			2,501
Other operating expenses		2,927			2,574			4,166			4,533
Total operating expenses		153,450			129,700			209,881			224,171
Reimbursement of expenses
Class A		(7,154	)		(4,648	)		(3,040	)		(8,902	)
Class C		(5,146	)		(3,675	)		(3,470	)		(2,736	)
Class I		(42,954	)		(33,860	)		(41,214	)		(41,442	)
Class Y		(45,536	)		(53,653	)		(47,183	)		(40,285	)
Net operating expenses		52,660			33,864			114,974			130,806
Net investment income		311,473			234,754			857,443			1,042,929

See accompanying Notes to the Financial Statements.

40

Barings Funds Trust 2017 Semi-Annual Report

STATEMENTS OF OPERATIONS (CONTINUED)

For the Six Months Ended December 31, 2017 (Unaudited)

	BARINGS EMERGING MARKETS DEBT BLENDED TOTAL RETURN FUND			BARINGS EMERGING MARKETS LOCAL CURRENCY DEBT FUND			BARINGS GLOBAL HIGH YIELD FUND			BARINGS U.S. HIGH YIELD FUND
Realized and Unrealized Gains (Losses) on Investments
Net realized gain on investments		187,223	(1)		96,756	(2)		418,299			341,888
Net realized gain (loss) on forward foreign currency exchange contracts		13,529			172,690			(316,456	)		–
Net realized gain (loss) on foreign currency and translation		(13,269	)		(80,638	)		5,836			–
Net realized gain on futures contracts		(8,600	)		–			–			–
Net realized gain on swap contracts		86,909			27,151			–			–
Net realized gain (loss)		265,792			215,959			107,679			341,888
Net change in unrealized appreciation (depreciation) on investments		71,722	(3)		121,520	(4)		(462,726	)		(817,310	)
Net change in unrealized appreciation (depreciation) on unfunded loan commitments		–			–			(735	)		(489	)
Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts		(48,012	)		(165,113	)		77,840			–
Net change in unrealized appreciation (depreciation) on foreign currency and translation		3,809			5,798			(2,283	)		–
Net change in unrealized appreciation on futures contracts		1,269			–			–			–
Net change in unrealized appreciation on swap contracts		(88,669	)		(50,858	)		–			–
Net change in unrealized appreciation (depreciation)		(59,881	)		(88,653	)		(387,904	)		(817,799	)
Net realized and unrealized gains (losses) on investments		205,911			127,306			(280,225	)		(475,911	)
Net increase in net assets resulting from operations	$	517,384		$	362,060		$	577,218		$	567,018

(1) Net of foreign capital gains taxes of $1,650.

(2) Net of foreign capital gains taxes of $747.

(3) Net of change in unrealized appreciation (depreciation) of foreign capital gains taxes of $3,142.

(4) Net of change in unrealized appreciation (depreciation) of foreign capital gains taxes of $(5,730).

See accompanying Notes to the Financial Statements.

41

Barings Funds Trust 2017 Semi-Annual Report

STATEMENTS OF CHANGES IN NET ASSETS

(Unaudited)

	BARINGS GLOBAL FLOATING RATE FUND						BARINGS GLOBAL CREDIT INCOME OPPORTUNITIES FUND
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE SIX MONTHS ENDED DECEMBER 31, 2017			FOR THE YEAR ENDED JUNE 30, 2017
Operations
Net investment income	$	4,693,816		$	8,278,260		$	4,459,945		$	7,530,510
Net realized gain (loss) on investments		(1,414,635	)		(233,299	)		(97,075	)		1,210,122
Net change in unrealized appreciation (depreciation) on investments		1,102,173			7,195,702			(1,086,061	)		7,282,710
Net increase in net assets resulting from operations		4,381,354			15,240,663			3,276,809			16,023,342
Dividends to Common Shareholders
Net investment income
Class A		(1,132,899	)		(938,252	)		(823,879	)		(998,532	)
Class C		(151,277	)		(185,364	)		(159,338	)		(215,973	)
Class I		(496,686	)		(672,463	)		(612,543	)		(1,381,435	)
Class Y		(2,914,404	)		(3,901,578	)		(2,864,675	)		(4,128,774	)
Return of capital
Class A		–			(539,887	)		–			(128,650	)
Class C		–			(92,940	)		–			(27,208	)
Class I		–			(292,699	)		–			(142,739	)
Class Y		–			(1,654,649	)		–			(507,018	)
Total dividends to common shareholders		(4,695,266	)		(8,277,832	)		(4,460,435	)		(7,530,329	)
Capital Share Transactions
Net proceeds from sale of shares		36,513,186			148,677,637			35,683,692			80,293,147
Net Asset Value of shares issued to shareholders in payment of distributions declared		4,334,331			6,768,827			2,677,425			3,419,184
Cost of shares redeemed		(30,405,290	)		(133,201,507	)		(14,588,677	)		(39,350,864	)
Net increase in net assets resulting from capital stock transactions		10,442,227			22,244,957			23,772,440			44,361,467
Total increase in net assets		10,128,315			29,207,788			22,588,814			52,854,480
Net Assets
Beginning of period		195,850,816			166,643,028			151,775,176			98,920,696
End of period (includes undistributed net investment income of $(1,304,091), $(1,302,641), $(1,245,390) and $(1,244,900), respectively)	$	205,979,131		$	195,850,816		$	174,363,990		$	151,775,176

See accompanying Notes to the Financial Statements.

42

Barings Funds Trust 2017 Semi-Annual Report

STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)

(Unaudited)

	BARINGS ACTIVE SHORT DURATION BOND FUND						BARINGS TOTAL RETURN BOND FUND
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE SIX MONTHS ENDED DECEMBER 31, 2017			FOR THE YEAR ENDED JUNE 30, 2017
Operations
Net investment income	$	3,849,852		$	4,633,575		$	494,588		$	758,446
Net realized gain (loss) on investments		(12,836	)		1,189,095			22,442			(33,874	)
Net change in unrealized appreciation (depreciation) on investments		(1,289,555	)		172,123			(10,445	)		(149,825	)
Net increase in net assets resulting from operations		2,547,461			5,994,793			506,585			574,747
Dividends to Common Shareholders
Net investment income
Class A		(1,352,526	)		(1,605,272	)		(3,328	)		(5,751	)
Class C		(5,482	)		(5,353	)		(2,330	)		(3,785	)
Class I		(2,667	)		(11,257	)		(206,186	)		(357,307	)
Class Y		(2,539,840	)		(3,057,128	)		(306,427	)		(433,167	)
Net realized gain
Class A		(490,289	)		(38,267	)		–			–
Class C		(2,453	)		(114	)		–			–
Class I		(910	)		(42	)		–			–
Class Y		(776,810	)		(63,403	)		–			–
Total dividends to common shareholders		(5,170,977	)		(4,780,836	)		(518,271	)		(800,010	)
Capital Share Transactions
Net proceeds from sale of shares		185,258,251			317,789,229			1,949,375			5,001,298
Net Asset Value of shares issued to shareholders in payment of distributions declared		4,700,908			4,101,768			99,347			75,328
Cost of shares redeemed		(89,726,557	)		(154,981,250	)		(408,677	)		(503,539	)
Net increase in net assets resulting from capital stock transactions		100,232,602			166,909,747			1,640,045			4,573,087
Total increase in net assets		97,609,086			168,123,704			1,628,359			4,347,824
Net Assets
Beginning of period		323,988,207			155,864,503			30,355,833			26,008,009
End of period (includes undistributed net investment income of $(62,959), $(12,296), $(70,588) and $(46,905), respectively)	$	421,597,293		$	323,988,207		$	31,984,192		$	30,355,833

See accompanying Notes to the Financial Statements.

43

Barings Funds Trust 2017 Semi-Annual Report

STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)

(Unaudited)

	BARINGS EMERGING MARKETS DEBT BLENDED TOTAL RETURN FUND						BARINGS EMERGING MARKETS LOCAL CURRENCY DEBT FUND
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE SIX MONTHS ENDED DECEMBER 31, 2017			FOR THE YEAR ENDED JUNE 30, 2017
Operations
Net investment income	$	311,473		$	448,168		$	234,754		$	138,071
Net realized gain on investments		265,792			415,231			215,959			211,313
Net change in unrealized appreciation (depreciation) on investments		(59,881	)		312,882			(88,653	)		123,019
Net increase in net assets resulting from operations		517,384			1,176,281			362,060			472,403
Dividends to Common Shareholders
Net investment income
Class A		(13,324	)		(10,093	)		(6,084	)		(9,790	)
Class C		(5,255	)		(8,789	)		(2,330	)		(9,013	)
Class I		(144,459	)		(254,319	)		(96,075	)		(241,257	)
Class Y		(153,678	)		(256,813	)		(167,985	)		(241,252	)
Net realized gain
Class A		(17,856	)		–			(2,395	)		(1,816	)
Class C		(6,611	)		–			(774	)		(1,816	)
Class I		(144,527	)		–			(18,576	)		(43,584	)
Class Y		(152,234	)		–			(49,187	)		(43,584	)
Total dividends to common shareholders		(637,944	)		(530,014	)		(343,406	)		(592,112	)
Capital Share Transactions
Net proceeds from sale of shares		546,822			539,240			14,961,859			–
Net Asset Value of shares issued to shareholders in payment of distributions declared		31,703			2,427			107,500			–
Cost of shares redeemed		(190,472	)		(255,428	)		(362,305	)		–
Net increase in net assets resulting from capital stock transactions		388,053			286,239			14,707,054			–
Total increase (decrease) in net assets		267,493			932,506			14,725,708			(119,709	)
Net Assets
Beginning of period		10,835,494			9,902,988			5,340,803			5,460,512
End of period (includes undistributed net investment income of $(56,185), $(50,942), $(56,851) and $(19,131), respectively)	$	11,102,987		$	10,835,494		$	20,066,511		$	5,340,803

See accompanying Notes to the Financial Statements.

44

Barings Funds Trust 2017 Semi-Annual Report

STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)

(Unaudited)

	BARINGS GLOBAL HIGH YIELD FUND						BARINGS U.S. HIGH YIELD FUND
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE SIX MONTHS ENDED DECEMBER 31, 2017			FOR THE YEAR ENDED JUNE 30, 2017
Operations
Net investment income	$	857,443		$	1,737,828		$	1,042,929		$	2,048,058
Net realized gain on investments		107,679			1,098,745			341,888			1,008,031
Net change in unrealized appreciation (depreciation) on investments		(387,904	)		892,695			(817,799	)		829,782
Net increase in net assets resulting from operations		577,218			3,729,268			567,018			3,885,871
Dividends to Common Shareholders
Net investment income
Class A		(3,247	)		(6,644	)		(77,115	)		(123,272	)
Class C		(6,285	)		(10,538	)		(3,080	)		(6,069	)
Class I		(393,854	)		(829,764	)		(488,327	)		(1,005,037	)
Class Y		(454,057	)		(890,882	)		(474,407	)		(913,775	)
Net realized gain
Class A		(2,628	)		(3,987	)		(70,872	)		(24,333	)
Class C		(5,847	)		(7,212	)		(3,383	)		(1,951	)
Class I		(305,536	)		(474,176	)		(449,823	)		(274,369	)
Class Y		(336,250	)		(517,180	)		(446,525	)		(253,823	)
Total dividends to common shareholders		(1,507,704	)		(2,740,383	)		(2,013,532	)		(2,602,629	)
Capital Share Transactions
Net proceeds from sale of shares		1,801,529			1,640,235			2,699,060			7,082,995
Net Asset Value of shares issued to shareholders in payment of distributions declared		97,843			111,913			438,709			428,741
Cost of shares redeemed		(2,309,978	)		(172,600	)		(1,980,333	)		(3,537,611	)
Net increase (decrease) in net assets resulting from capital stock transactions		(410,606	)		1,579,548			1,157,436			3,974,125
Total increase (decrease) in net assets		(1,341,092	)		2,568,433			(289,078	)		5,257,367
Net Assets
Beginning of period		27,839,576			25,271,143			33,102,619			27,845,252
End of period (includes undistributed net investment income of $(134,955), $(134,955), $(95) and $(95), respectively)	$	26,498,484		$	27,839,576		$	32,813,541		$	33,102,619

See accompanying Notes to the Financial Statements.

45

Barings Global Floating Rate Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015			PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (2)
Per Common Share Data
Net asset value, beginning of period	$	9.54		$	9.13		$	9.60		$	10.20		$	10.00
Income from investment operations:
Net investment income (3)		0.22			0.43			0.44			0.44			0.30
Net realized and unrealized gain (loss) on investments		(0.01	)		0.42			(0.45	)		(0.35	)		0.08
Total increase (decrease) from investment operations		0.21			0.85			(0.01	)		0.09			0.38
Less dividends and distributions:
From net investment income		(0.22	)		(0.31	)		(0.46	)		(0.68	)		(0.18	)
From net realized gain		–			–			–			(0.01	)		–
From return of capital		–			(0.13	)		–			–			–
Total dividends and distributions		(0.22	)		(0.44	)		(0.46	)		(0.69	)		(0.18	)
Redemption fees		0.00			0.00			0.00			0.00	(4)		0.00
Net asset value, at end of period	$	9.53		$	9.54		$	9.13		$	9.60		$	10.20
Total investment return (5)		2.12	%(6)		9.47	%		(0.04	)%		0.95	%		3.81	%(6)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	52,609		$	45,363		$	13,980		$	5,153		$	12,464
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.30	%(7)		1.37	%		1.72	%		1.74	%		2.27	%(7)
Ratio of net expenses to average net assets (8)		0.99	%(7)(9)		0.99	%(10)		1.05	%(11)		1.05	%(11)		1.05	%(7)(11)
Ratio of net investment income to average net assets		4.48	%(7)		4.52	%		4.74	%		4.44	%		3.76	%(7)
Portfolio turnover rate		27.72	%(6)		47.06	%		62.99	%		63.17	%		49.51	%(6)

(1) Unaudited.

(2) Fund commenced operations on September 16, 2013.

(3) Calculated using average shares outstanding.

(4) Amount rounds to less than $.01 per share.

(5) Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(6) Not annualized.

(7) Annualized for periods less than one full year.

(8) 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 1.00% as a percentage of average daily net assets.

(9) Net expenses reflect a voluntary expense reimbursement to prevent a negative yield.

(10) Net expenses reflect a one-time voluntary reimbursement to the Fund during the period in connection with a change to the fee waiver and/or expense reimbursement agreement.

(11) Net expenses reflect a previous fee waiver and/or expense reimbursement agreement.

See accompanying Notes to the Financial Statements.

46

Barings Global Floating Rate Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015			PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (2)
Per Common Share Data
Net asset value, beginning of period	$	9.51		$	9.10		$	9.57		$	10.16		$	10.00
Income from investment operations:
Net investment income (3)		0.18			0.37			0.37			0.35			0.24
Net realized and unrealized gain (loss) on investments		(0.02	)		0.41			(0.45	)		(0.33	)		0.07
Total increase (decrease) from investment operations		0.16			0.78			(0.08	)		0.02			0.31
Less dividends and distributions:
From net investment income		(0.18	)		(0.26	)		(0.39	)		(0.60	)		(0.15	)
From net realized gain		–			–			–			(0.01	)		–
From return of capital		–			(0.11	)		–			–			–
Total dividends and distributions		(0.18	)		(0.37	)		(0.39	)		(0.61	)		(0.15	)
Redemption fees		0.00			0.00			0.00			0.00	(4)		0.00
Net asset value, at end of period	$	9.49		$	9.51		$	9.10		$	9.57		$	10.16
Total investment return (5)		1.74	%(6)		8.68	%		(0.81	)%		0.30	%		3.15	%(6)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	7,936		$	8,018		$	6,803		$	5,461		$	2,396
Ratio of total expenses (before reductions and reimbursements) to average net assets		2.12	%(7)		2.24	%		2.50	%		3.12	%		4.97	%(7)
Ratio of net expenses to average net assets (8)		1.74	%(7)(9)		1.71	%(10)		1.80	%(11)		1.80	%(11)		1.80	%(7)(11)
Ratio of net investment income to average net assets		3.74	%(7)		3.91	%		4.04	%		3.60	%		3.07	%(7)
Portfolio turnover rate		27.72	%(6)		47.06	%		62.99	%		63.17	%		49.51	%(6)

(1) Unaudited.

(2) Fund commenced operations on September 16, 2013.

(3) Calculated using average shares outstanding.

(4) Amount rounds to less than $.01 per share.

(5) Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(6) Not annualized.

(7) Annualized for periods less than one full year.

(8) 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 1.75% as a percentage of average daily net assets.

(9) Net expenses reflect a voluntary expense reimbursement to prevent a negative yield.

(10) Net expenses reflect a one-time voluntary reimbursement to the Fund during the period in connection with a change to the fee waiver and/or expense reimbursement agreement.

(11) Net expenses reflect a previous fee waiver and/or expense reimbursement agreement.

See accompanying Notes to the Financial Statements.

47

Barings Global Floating Rate Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015			PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (2)
Per Common Share Data
Net asset value, beginning of period	$	9.56		$	9.15		$	9.62		$	10.21		$	10.00
Income from investment operations:
Net investment income (3)		0.23			0.47			0.47			0.46			0.30
Net realized and unrealized gain (loss) on investments		(0.01	)		0.40			(0.45	)		(0.34	)		0.10
Total increase from investment operations		0.22			0.87			0.02			0.12			0.40
Less dividends and distributions:
From net investment income		(0.23	)		(0.32	)		(0.49	)		(0.70	)		(0.19	)
From net realized gain		–			–			–			(0.01	)		–
From return of capital		–			(0.14	)		–			–			–
Total dividends and distributions		(0.23	)		(0.46	)		(0.49	)		(0.71	)		(0.19	)
Redemption fees		0.00			0.00			0.00			0.00	(4)		0.00
Net asset value, at end of period	$	9.55		$	9.56		$	9.15		$	9.62		$	10.21
Total investment return (5)		2.25	%(6)		9.74	%		0.25	%		1.34	%		4.04	%(6)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	21,738		$	19,733		$	19,903		$	25,885		$	32,772
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.06	%(7)		1.16	%		1.29	%		1.31	%		1.52	%(7)
Ratio of net expenses to average net assets (8)		0.75	%(7)		0.75	%		0.75	%		0.75	%		0.75	%(7)
Ratio of net investment income to average net assets		4.70	%(7)		4.90	%		5.07	%		4.69	%		3.72	%(7)
Portfolio turnover rate		27.72	%(6)		47.06	%		62.99	%		63.17	%		49.51	%(6)

(1) Unaudited.

(2) Fund commenced operations on September 16, 2013.

(3) Calculated using average shares outstanding.

(4) Amount rounds to less than $.01 per share.

(5) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(6) Not annualized.

(7) Annualized for periods less than one full year.

(8) 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.

See accompanying Notes to the Financial Statements.

48

Barings Global Floating Rate Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015			PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (2)
Per Common Share Data
Net asset value, beginning of period	$	9.56		$	9.15		$	9.62		$	10.21		$	10.00
Income from investment operations:
Net investment income (3)		0.23			0.47			0.47			0.45			0.30
Net realized and unrealized gain (loss) on investments		(0.02	)		0.40			(0.45	)		(0.33	)		0.10
Total increase from investment operations		0.21			0.87			0.02			0.12			0.40
Less dividends and distributions:
From net investment income		(0.23	)		(0.32	)		(0.49	)		(0.70	)		(0.19	)
From net realized gain		–			–			–			(0.01	)		–
From return of capital		–			(0.14	)		–			–			–
Total dividends and distributions		(0.23	)		(0.46	)		(0.49	)		(0.71	)		(0.19	)
Redemption fees		0.00			0.00			0.00			0.00	(4)		0.00
Net asset value, at end of period	$	9.54		$	9.56		$	9.15		$	9.62		$	10.21
Total investment return (5)		2.26	%(6)		9.73	%		0.22	%		1.28	%		4.04	%(6)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	123,696		$	122,736		$	125,957		$	129,659		$	66,999
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.04	%(7)		1.14	%		1.27	%		1.25	%		1.53	%(7)
Ratio of net expenses to average net assets (8)		0.75	%(7)		0.75	%		0.75	%		0.75	%		0.75	%(7)
Ratio of net investment income to average net assets		4.73	%(7)		4.90	%		5.08	%		4.58	%		3.80	%(7)
Portfolio turnover rate		27.72	%(6)		47.06	%		62.99	%		63.17	%		49.51	%(6)

(1) Unaudited.

(2) Fund commenced operations on September 16, 2013.

(3) Calculated using average shares outstanding.

(4) Amount rounds to less than $.01 per share.

(5) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(6) Not annualized.

(7) Annualized for periods less than one full year.

(8) 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.

See accompanying Notes to the Financial Statements.

49

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015			PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (2)
Per Common Share Data
Net asset value, beginning of period	$	9.51		$	8.80		$	9.51		$	10.45		$	10.00
Income from investment operations:
Net investment income (3)		0.25			0.55			0.56			0.54			0.40
Net realized and unrealized gain (loss) on investments		(0.07	)		0.71			(0.66	)		(0.57	)		0.33
Total increase (decrease) from investment operations		0.18			1.26			(0.10	)		(0.03	)		0.73
Less dividends and distributions:
From net investment income		(0.25	)		(0.50	)		(0.61	)		(0.78	)		(0.28	)
From net realized gain		–			–			–			(0.13	)		–
From return of capital		–			(0.05	)		–			–			–
Total dividends and distributions		(0.25	)		(0.55	)		(0.61	)		(0.91	)		(0.28	)
Redemption fees		0.00			0.00			0.00			0.00	(4)		0.00
Net asset value, at end of period	$	9.44		$	9.51		$	8.80		$	9.51		$	10.45
Total investment return (5)		1.95	%(6)		14.61	%		(0.84	)%		(0.11	)%		7.30	%(6)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	33,532		$	26,904		$	12,340		$	12,718		$	2,591
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.40	%(7)		1.56	%		1.90	%		1.98	%		3.95	%(7)
Ratio of net expenses to average net assets (8)		1.20	%(7)		1.20	%		1.20	%		1.20	%		1.20	%(7)
Ratio of net investment income to average net assets		5.21	%(7)		5.83	%		6.28	%		5.46	%		4.88	%(7)
Portfolio turnover rate		23.48	%(6)		48.69	%		58.08	%		84.65	%		99.72	%(6)

(1) Unaudited.

(2) Fund commenced operations on September 16, 2013.

(3) Calculated using average shares outstanding.

(4) Amount rounds to less than $.01 per share.

(5) Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(6) Not annualized.

(7) Annualized for periods less than one full year.

(8) 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.

See accompanying Notes to the Financial Statements.

50

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015			PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (2)
Per Common Share Data
Net asset value, beginning of period	$	9.50		$	8.79		$	9.50		$	10.45		$	10.00
Income from investment operations:
Net investment income (3)		0.21			0.48			0.49			0.47			0.35
Net realized and unrealized gain (loss) on investments		(0.07	)		0.71			(0.65	)		(0.58	)		0.32
Total increase (decrease) from investment operations		0.14			1.19			(0.16	)		(0.11	)		0.67
Less dividends and distributions:
From net investment income		(0.21	)		(0.43	)		(0.55	)		(0.71	)		(0.22	)
From net realized gain		–			–			–			(0.13	)		–
From return of capital		–			(0.05	)		–			–			–
Total dividends and distributions		(0.21	)		(0.48	)		(0.55	)		(0.84	)		(0.22	)
Redemption fees		0.00			0.00			0.00			0.00	(4)		0.00
Net asset value, at end of period	$	9.43		$	9.50		$	8.79		$	9.50		$	10.45
Total investment return (6)		1.57	%(5)		13.75	%		(1.59	)%		(0.93	)%		6.75	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	7,971		$	6,628		$	3,578		$	3,579		$	944
Ratio of total expenses (before reductions and reimbursements) to average net assets		2.22	%(7)		2.39	%		2.91	%		4.09	%		10.50	%(7)
Ratio of net expenses to average net assets (8)		1.95	%(7)		1.95	%		1.95	%		1.95	%		1.95	%(7)
Ratio of net investment income to average net assets		4.46	%(7)		5.12	%		5.50	%		4.79	%		4.39	%(7)
Portfolio turnover rate		23.48	%(5)		48.69	%		58.08	%		84.65	%		99.72	%(5)

(1) Unaudited.

(2) Fund commenced operations on September 16, 2013.

(3) Calculated using average shares outstanding.

(4) Amount rounds to less than $.01 per share.

(5) Not annualized.

(6) Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(7) Annualized for periods less than one full year.

(8) 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.

See accompanying Notes to the Financial Statements.

51

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015			PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (2)
Per Common Share Data
Net asset value, beginning of period	$	9.50		$	8.80		$	9.51		$	10.46		$	10.00
Income from investment operations:
Net investment income (3)		0.26			0.58			0.58			0.56			0.41
Net realized and unrealized gain (loss) on investments		(0.06	)		0.70			(0.65	)		(0.58	)		0.35
Total increase (decrease) from investment operations		0.20			1.28			(0.07	)		(0.02	)		0.76
Less dividends and distributions:
From net investment income		(0.26	)		(0.52	)		(0.64	)		(0.80	)		(0.30	)
From net realized gain		–			–			–			(0.13	)		–
From return of capital		–			(0.06	)		–			–			–
Total dividends and distributions		(0.26	)		(0.58	)		(0.64	)		(0.93	)		(0.30	)
Redemption fees		0.00			0.00			0.00			0.00	(4)		0.00
Net asset value, at end of period	$	9.44		$	9.50		$	8.80		$	9.51		$	10.46
Total investment return (6)		2.08	%(5)		14.90	%		(0.61	)%		0.05	%		7.59	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	22,075		$	22,228		$	24,689		$	26,428		$	26,406
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.15	%(7)		1.27	%		1.54	%		1.58	%		1.83	%(7)
Ratio of net expenses to average net assets (8)		0.95	%(7)		0.95	%		0.95	%		0.95	%		0.95	%(7)
Ratio of net investment income to average net assets		5.47	%(7)		6.22	%		6.54	%		5.69	%		5.02	%(7)
Portfolio turnover rate		23.48	%(5)		48.69	%		58.08	%		84.65	%		99.72	%(5)

(1) Unaudited.

(2) Fund commenced operations on September 16, 2013.

(3) Calculated using average shares outstanding.

(4) Amount rounds to less than $.01 per share.

(5) Not annualized.

(6) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(7) Annualized for periods less than one full year.

(8) 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.

See accompanying Notes to the Financial Statements.

52

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015			PERIOD FROM SEPTEMBER 16, 2013 THROUGH JUNE 30, 2014 (2)
Per Common Share Data
Net asset value, beginning of period	$	9.50		$	8.80		$	9.51		$	10.46		$	10.00
Income from investment operations:
Net investment income (3)		0.26			0.57			0.59			0.56			0.41
Net realized and unrealized gain (loss) on investments		(0.06	)		0.71			(0.66	)		(0.58	)		0.35
Total increase (decrease) from investment operations		0.20			1.28			(0.07	)		(0.02	)		0.76
Less dividends and distributions:
From net investment income		(0.26	)		(0.52	)		(0.64	)		(0.80	)		(0.30	)
From net realized gain		–			–			–			(0.13	)		–
From return of capital		–			(0.06	)		–			–			–
Total dividends and distributions		(0.26	)		(0.58	)		(0.64	)		(0.93	)		(0.30	)
Redemption fees		0.00			0.00			0.00			0.00	(4)		0.00
Net asset value, at end of period	$	9.44		$	9.50		$	8.80		$	9.51		$	10.46
Total investment return (5)		2.08	%(6)		14.90	%		(0.61	)%		0.05	%		7.59	%(6)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	110,786		$	96,014		$	58,312		$	39,006		$	33,885
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.15	%(7)		1.28	%		1.55	%		1.58	%		1.84	%(7)
Ratio of net expenses to average net assets (8)		0.95	%(7)		0.95	%		0.95	%		0.95	%		0.95	%(7)
Ratio of net investment income to average net assets		5.47	%(7)		6.14	%		6.56	%		5.67	%		5.04	%(7)
Portfolio turnover rate		23.48	%(6)		48.69	%		58.08	%		84.65	%		99.72	%(6)

(1) Unaudited.

(2) Fund commenced operations on September 16, 2013.

(3) Calculated using average shares outstanding.

(4) Amount rounds to less than $.01 per share.

(5) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(6) Not annualized.

(7) Annualized for periods less than one full year.

(8) 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.

See accompanying Notes to the Financial Statements.

53

Barings Active Short Duration Bond Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.01		$	9.98		$	10.00
Income from investment operations:
Net investment income (3)		0.10			0.17			0.15
Net realized and unrealized gain (loss) on investments		(0.03	)		0.03			(0.03	)(4)
Total increase from investment operations		0.07			0.20			0.12
Less dividends and distributions:
From net investment income		(0.10	)		(0.17	)		(0.14	)
From net realized gain		(0.03	)		(0.00	)(5)		–
Total dividends and distributions		(0.13	)		(0.17	)		(0.14	)
Net asset value, at end of period	$	9.95		$	10.01		$	9.98
Total investment return (6)		0.67	%(7)		2.12	%		1.17	%(7)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	160,489		$	119,189		$	39,992
Ratio of total expenses (before reductions and reimbursements) to average net assets		0.90	%(8)		1.06	%		1.18	%(8)
Ratio of net expenses to average net assets (9)		0.65	%(8)		0.65	%		0.65	%(8)
Ratio of net investment income to average net assets		1.92	%(8)		1.72	%		1.51	%(8)
Portfolio turnover rate		29.16	%(7)		88.52	%		218.67	%(7)

(1) Unaudited.

(2) Fund commenced operations on July 8, 2015.

(3) Calculated using average shares outstanding.

(4) The per share amount varies from the net realized and unrealized gain/loss for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time.

(5) Amount rounds to less than $.01 per share.

(6) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(7) Not annualized.

(8) Annualized for periods less than one full year.

(9) 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 .65% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

54

Barings Active Short Duration Bond Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.01		$	9.97		$	10.00
Income from investment operations:
Net investment income (3)		0.08			0.19			0.07
Net realized and unrealized gain (loss) on investments		(0.02	)		0.05			(0.03	)(4)
Total increase from investment operations		0.06			0.24			0.04
Less dividends and distributions:
From net investment income		(0.09	)		(0.20	)		(0.07	)
From net realized gain		(0.03	)		(0.00	)(5)		—
Total dividends and distributions		(0.12	)		(0.20	)		(0.07	)
Net asset value, at end of period	$	9.95		$	10.01		$	9.97
Total investment return (6)		0.54	%(7)		2.41	%		0.39	%(7)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	871		$	236		$	257
Ratio of total expenses (before reductions and reimbursements) to average net assets		2.19	%(8)		3.09	%(9)		5.44	%(8)(10)
Ratio of net expenses to average net assets (11)		0.90	%(8)		0.40	%(9)		1.40	%(8)(10)
Ratio of net investment income to average net assets		1.64	%(8)		1.94	%(9)		0.71	%(8)(10)
Portfolio turnover rate		29.16	%(7)		88.52	%		218.67	%(7)

(1) Unaudited.

(2) Fund commenced operations on July 8, 2015.

(3) Calculated using average shares outstanding.

(4) The per share amount varies from the net realized and unrealized gain/loss for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time.

(5) Amount rounds to less than $.01 per share.

(6) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(7) Not annualized.

(8) Annualized for periods less than one full year.

(9) Expenses shown reflect a reimbursement to the Fund during the period for an overaccrual of 12b-1 fees made during and prior to the period.

(10) Expenses shown reflect an overaccrual of 12b-1 fees for the period of $1,478 or 0.50% of average net assets over the period. Subsequent to the period, the Fund was reimbursed for the overaccrued amount.

(11) 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 0.90% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

55

Barings Active Short Duration Bond Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.01		$	9.97		$	10.00
Income from investment operations:
Net investment income (3)		0.11			0.18			0.16
Net realized and unrealized gain (loss) on investments		(0.03	)		0.06			(0.03	)(4)
Total increase from investment operations		0.08			0.24			0.13
Less dividends and distributions:
From net investment income		(0.11	)		(0.20	)		(0.16	)
From net realized gain (5)		(0.03	)		(0.00	)(4)		—
Total dividends and distributions		(0.14	)		(0.20	)		(0.16	)
Net asset value, at end of period	$	9.95		$	10.01		$	9.97
Total investment return(6)		0.82	%(7)		2.44	%		1.35	%(7)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	302		$	100		$	5,971
Ratio of total expenses (before reductions and reimbursements) to average net assets		3.39	%(8)		1.67	%		0.96	%(8)
Ratio of net expenses to average net assets (9)		0.40	%(8)		0.40	%		0.44	%(8)
Ratio of net investment income to average net assets		2.15	%(8)		1.84	%		1.67	%(8)
Portfolio turnover rate		29.16	%(7)		88.52	%		218.67	%(7)

(1) Unaudited.

(2) Fund commenced operations on July 8, 2015.

(3) Calculated using average shares outstanding.

(4) The per share amount varies from the net realized and unrealized gain/loss for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time.

(5) Amount rounds to less than $.01 per share.

(6) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(7) Not annualized.

(8) Annualized for periods less than one full year.

(9) 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 .40% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

56

Barings Active Short Duration Bond Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.01		$	9.97		$	10.00
Income from investment operations:
Net investment income (3)		0.11			0.20			0.17
Net realized and unrealized gain (loss) on investments		(0.04	)		0.04			(0.04	)(4)
Total increase from investment operations		0.07			0.24			0.13
Less dividends and distributions:
From net investment income		(0.11	)		(0.20	)		(0.16	)
From net realized gain		(0.03	)		(0.00	)(5)		—
Total dividends and distributions		(0.14	)		(0.20	)		(0.16	)
Net asset value, at end of period	$	9.94		$	10.01		$	9.97
Total investment return (6)		0.79	%(7)		2.38	%		1.36	%(7)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	259,935		$	204,464		$	109,645
Ratio of total expenses (before reductions and reimbursements) to average net assets		0.66	%(8)		0.82	%		0.87	%(8)
Ratio of net expenses to average net assets (9)		0.40	%(8)		0.40	%		0.41	%(8)
Ratio of net investment income to average net assets		2.17	%(8)		1.97	%		1.73	%(8)
Portfolio turnover rate		29.16	%(7)		88.52	%		218.67	%(7)

(1) Unaudited.

(2) Fund commenced operations on July 8, 2015.

(3) Calculated using average shares outstanding.

(4) The per share amount varies from the net realized and unrealized gain/loss for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time.

(5) Amount rounds to less than $.01 per share.

(6) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(7) Not annualized.

(8) Annualized for periods less than one full year.

(9) 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 .40% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

57

Barings Total Return Bond Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.08		$	10.18		$	10.00
Income from investment operations:
Net investment income (3)		0.15			0.25			0.25
Net realized and unrealized gain (loss) on investments		0.00			(0.09	)		0.20
Total increase from investment operations		0.15			0.16			0.45
Less dividends and distributions:
From net investment income		(0.15	)		(0.26	)		(0.25	)
From net realized gain		—			—			(0.02	)
Total dividends and distributions		(0.15	)		(0.26	)		(0.27	)
Net asset value, at end of period	$	10.08		$	10.08		$	10.18
Total investment return (4)		1.51	%(5)		1.65	%		4.63	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	218		$	218		$	211
Ratio of total expenses (before reductions and reimbursements) to average net assets		3.64	%(6)		3.52	%		5.60	%(6)
Ratio of net expenses to average net assets (7)(8)		0.80	%(6)		0.80	%		0.80	%(6)
Ratio of net investment income to average net assets		2.87	%(6)		2.49	%		2.52	%(6)
Portfolio turnover rate		111.79	%(5)		242.55	%		434.37	%(5)

(1) Unaudited.

(2) Fund commenced operations on July 8, 2015.

(3) Calculated using average shares outstanding.

(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 Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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 .80% as a percentage of average daily net assets.

(8) Ratio of net expenses to average net assets does not include expenses of the underlying fund in which the Fund invests.

See accompanying Notes to the Financial Statements.

58

Barings Total Return Bond Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.08		$	10.18		$	10.00
Income from investment operations:
Net investment income (3)		0.11			0.17			0.17
Net realized and unrealized gain (loss) on investments		0.01			(0.08	)		0.21
Total increase from investment operations		0.12			0.09			0.38
Less dividends and distributions:
From net investment income		(0.12	)		(0.19	)		(0.18	)
From net realized gain		—			—			(0.02	)
Total dividends and distributions		(0.12	)		(0.19	)		(0.20	)
Net asset value, at end of period	$	10.08		$	10.08		$	10.18
Total investment return (4)		1.13	%(5)		0.89	%		3.87	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	202		$	202		$	204
Ratio of total expenses (before reductions and reimbursements) to average net assets		4.54	%(6)		4.41	%		6.38	%(6)
Ratio of net expenses to average net assets (7)(8)		1.54	%(6)(9)		1.55	%		1.55	%(6)
Ratio of net investment income to average net assets		2.13	%(6)		1.74	%		1.77	%(6)
Portfolio turnover rate		111.79	%(5)		242.55	%		434.37	%(5)

(1) Unaudited.

(2) Fund commenced operations on July 8, 2015.

(3) Calculated using average shares outstanding.

(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 Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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 1.55% as a percentage of average daily net assets.

(8) Ratio of net expenses to average net assets does not include expenses of the underlying fund in which the Fund invests.

(9) Net expenses reflect a voluntary expense reimbursement to prevent a negative yield.

See accompanying Notes to the Financial Statements.

59

Barings Total Return Bond Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.08		$	10.18		$	10.00
Income from investment operations:
Net investment income (3)		0.16			0.28			0.27
Net realized and unrealized gain (loss) on investments		0.01			(0.09	)		0.20
Total increase from investment operations		0.17			0.19			0.47
Less dividends and distributions:
From net investment income		(0.17	)		(0.29	)		(0.27	)
From net realized gain		—			—			(0.02	)
Total dividends and distributions		(0.17	)		(0.29	)		(0.29	)
Net asset value, at end of period	$	10.08		$	10.08		$	10.18
Total investment return (4)		1.64	%(5)		1.90	%		4.89	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	12,455		$	12,457		$	12,582
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.20	%(6)		1.36	%		1.37	%(6)
Ratio of net expenses to average net assets (7)(8)		0.55	%(6)		0.55	%		0.55	%(6)
Ratio of net investment income to average net assets		3.12	%(6)		2.74	%		2.77	%(6)
Portfolio turnover rate		111.79	%(5)		242.55	%		434.37	%(5)

(1) Unaudited.

(2) Fund commenced operations on July 8, 2015.

(3) Calculated using average shares outstanding.

(4) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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 .55% as a percentage of average daily net assets.

(8) Ratio of net expenses to average net assets does not include expenses of the underlying fund in which the Fund invests.

See accompanying Notes to the Financial Statements.

60

Barings Total Return Bond Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.08		$	10.18		$	10.00
Income from investment operations:
Net investment income (3)		0.16			0.27			0.27
Net realized and unrealized gain (loss) on investments		0.01			(0.08	)		0.20
Total increase from investment operations		0.17			0.19			0.47
Less dividends and distributions:
From net investment income		(0.17	)		(0.29	)		(0.27	)
From net realized gain		—			—			(0.02	)
Total dividends and distributions		(0.17	)		(0.29	)		(0.29	)
Net asset value, at end of period	$	10.08		$	10.08		$	10.18
Total investment return (4)		1.64	%(5)		1.90	%		4.89	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	19,109		$	17,478		$	13,011
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.20	%(6)		1.36	%		1.36	%(6)
Ratio of net expenses to average net assets (7)(8)		0.55	%(6)		0.55	%		0.55	%(6)
Ratio of net investment income to average net assets		3.14	%(6)		2.72	%		2.77	%(6)
Portfolio turnover rate		111.79	%(5)		242.55	%		434.37	%(5)

(1) Unaudited.

(2) Fund commenced operations on July 8, 2015.

(3) Calculated using average shares outstanding.

(4) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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 .55% as a percentage of average daily net assets.

(8) Ratio of net expenses to average net assets does not include expenses of the underlying fund in which the Fund invests.

See accompanying Notes to the Financial Statements.

61

Barings Emerging Markets Debt Blended Total Return Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 21, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.55		$	9.90		$	10.00
Income from investment operations:
Net investment income (3)		0.28			0.42			0.43
Net realized and unrealized gain (loss) on investments		0.20			0.73			(0.19	)
Total increase from investment operations		0.48			1.15			0.24
Less dividends and distributions:
From net investment income		(0.29	)		(0.50	)		(0.34	)
From net realized gain		(0.30	)		—			(0.00	)(4)
Total dividends and distributions		(0.59	)		(0.50	)		(0.34	)
Net asset value, at end of period	$	10.44		$	10.55		$	9.90
Total investment return (5)		4.65	%(6)		11.94	%		2.62	%(6)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	621		$	211		$	198
Ratio of total expenses (before reductions and reimbursements) to average net assets		4.03	%(7)		5.77	%		6.82	%(7)
Ratio of net expenses to average net assets (8)		1.13	%(7)(9)		1.15	%(9)		1.16	%(7)
Ratio of net investment income to average net assets		5.25	%(7)		4.17	%		6.52	%(7)
Portfolio turnover rate		39.40	%(6)		55.66	%		83.26	%(6)

(1) Unaudited.

(2) Fund commenced operations on October 21, 2015.

(3) Calculated using average shares outstanding.

(4) Amount rounds to less than $.01 per share.

(5) Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(6) Not annualized.

(7) Annualized for periods less than one full year.

(8) 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.

(9) Net expenses reflect a voluntary expense reimbursement to prevent a negative yield.

See accompanying Notes to the Financial Statements.

62

Barings Emerging Markets Debt Blended Total Return Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 21, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.55		$	9.90		$	10.00
Income from investment operations:
Net investment income (3)		0.24			0.35			0.38
Net realized and unrealized gain (loss) on investments		0.20			0.73			(0.19	)
Total increase from investment operations		0.44			1.08			0.19
Less dividends and distributions:
From net investment income		(0.25	)		(0.43	)		(0.29	)
From net realized gain		(0.30	)		–			(0.00	)(4)
Total dividends and distributions		(0.55	)		(0.43	)		(0.29	)
Net asset value, at end of period	$	10.44		$	10.55		$	9.90
Total investment return (5)		4.29	%(6)		11.11	%		2.10	%(6)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	220		$	222		$	198
Ratio of total expenses (before reductions and reimbursements) to average net assets		6.37	%(7)		6.47	%		7.57	%(7)
Ratio of net expenses to average net assets (8)		1.88	%(7)(9)		1.89	%(9)		1.90	%(7)
Ratio of net investment income to average net assets		4.50	%(7)		3.44	%		5.79	%(7)
Portfolio turnover rate		39.40	%(6)		55.66	%		83.26	%(6)

(1) Unaudited.

(2) Fund commenced operations on October 21, 2015.

(3) Calculated using average shares outstanding.

(4) Amount rounds to less than $.01 per share.

(5) Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(6) Not annualized.

(7) Annualized for periods less than one full year.

(8) 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.

(9) Net expenses reflect a voluntary expense reimbursement to prevent a negative yield.

See accompanying Notes to the Financial Statements.

63

Barings Emerging Markets Debt Blended Total Return Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 21, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.55		$	9.90		$	10.00
Income from investment operations:
Net investment income (3)		0.30			0.45			0.45
Net realized and unrealized gain (loss) on investments		0.19			0.73			(0.19	)
Total increase from investment operations		0.49			1.18			0.26
Less dividends and distributions:
From net investment income		(0.30	)		(0.53	)		(0.36	)
From net realized gain		(0.30	)		–			(0.00	)(4)
Total dividends and distributions		(0.60	)		(0.53	)		(0.36	)
Net asset value, at end of period	$	10.44		$	10.55		$	9.90
Total investment return (5)		4.81	%(6)		12.22	%		2.79	%(6)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	5,013		$	5,063		$	4,753
Ratio of total expenses (before reductions and reimbursements) to average net assets		2.55	%(7)		2.76	%		2.58	%(7)
Ratio of net expenses to average net assets (8)		0.89	%(7)(9)		0.90	%(9)		0.92	%(7)
Ratio of net investment income to average net assets		5.49	%(7)		4.42	%		6.77	%(7)
Portfolio turnover rate		39.40	%(6)		55.66	%		83.26	%(6)

(1) Unaudited.

(2) Fund commenced operations on October 21, 2015.

(3) Calculated using average shares outstanding.

(4) Amount rounds to less than $.01 per share.

(5) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(6) Not annualized.

(7) Annualized for periods less than one full year.

(8) 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.

(9) Net expenses reflect a voluntary expense reimbursement to prevent a negative yield.

See accompanying Notes to the Financial Statements.

64

Barings Emerging Markets Debt Blended Total Return Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS

	CLASS Y
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 21, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.55		$	9.90		$	10.00
Income from investment operations:
Net investment income (3)		0.30			0.45			0.45
Net realized and unrealized gain (loss) on investments		0.19			0.73			(0.19	)
Total increase from investment operations		0.49			1.18			0.26
Less dividends and distributions:
From net investment income		(0.30	)		(0.53	)		(0.36	)
From net realized gain		(0.30	)		–			(0.00	)(4)
Total dividends and distributions		(0.60	)		(0.53	)		(0.36	)
Net asset value, at end of period	$	10.44		$	10.55		$	9.90
Total investment return (5)		4.81	%(6)		12.22	%		2.79	%(6)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	5,249		$	5,340		$	4,754
Ratio of total expenses (before reductions and reimbursements) to average net assets		2.54	%(7)		2.77	%		2.58	%(7)
Ratio of net expenses to average net assets (8)		0.89	%(7)(9)		0.90	%(9)		0.92	%(7)
Ratio of net investment income to average net assets		5.49	%(7)		4.43	%		6.77	%(7)
Portfolio turnover rate		39.40	%(6)		55.66	%		83.26	%(6)

(1) Unaudited.

(2) Fund commenced operations on October 21, 2015.

(3) Calculated using average shares outstanding.

(4) Amount rounds to less than $.01 per share.

(5) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(6) Not annualized.

(7) Annualized for periods less than one full year.

(8) 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.

(9) Net expenses reflect a voluntary expense reimbursement to prevent a negative yield.

See accompanying Notes to the Financial Statements.

65

Barings Emerging Markets Local Currency Debt Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM DECEMBER 8, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.68		$	10.92		$	10.00
Income from investment operations:
Net investment income (3)		0.27			0.25			0.50
Net realized and unrealized gain on investments		0.19			0.67			0.73
Total increase from investment operations		0.46			0.92			1.23
Less dividends and distributions:
From net investment income		(0.27	)		(0.98	)		(0.31	)
From net realized gain		(0.08	)		(0.18	)		–
Total dividends and distributions		(0.35	)		(1.16	)		(0.31	)
Net asset value, at end of period	$	10.79		$	10.68		$	10.92
Total investment return (4)		4.38	%(5)		9.57	%		12.58	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	333		$	107		$	109
Ratio of total expenses (before reductions and reimbursements) to average net assets		4.96	%(6)		8.41	%		8.55	%(6)
Ratio of net expenses to average net assets (7)		1.02	%(6)(8)		1.06	%(8)		1.08	%(6)
Ratio of net investment income to average net assets		4.95	%(6)		2.41	%		8.82	%(6)
Portfolio turnover rate		19.94	%(5)		67.23	%		37.68	%(5)

(1) Unaudited.

(2) Fund commenced operations on December 8, 2015.

(3) Calculated using average shares outstanding.

(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 Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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.

(8) Net expenses reflect a voluntary expense reimbursement to prevent a negative yield.

See accompanying Notes to the Financial Statements.

66

Barings Emerging Markets Local Currency Debt Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM DECEMBER 8, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.68		$	10.92		$	10.00
Income from investment operations:
Net investment income (3)		0.25			0.18			0.46
Net realized and unrealized gain on investments		0.17			0.66			0.73
Total increase from investment operations		0.42			0.84			1.19
Less dividends and distributions:
From net investment income		(0.23	)		(0.90	)		(0.27	)
From net realized gain		(0.08	)		(0.18	)		–
Total dividends and distributions		(0.31	)		(1.08	)		(0.27	)
Net asset value, at end of period	$	10.79		$	10.68		$	10.92
Total investment return (4)		3.99	%(5)		8.77	%		12.13	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	108		$	107		$	109
Ratio of total expenses (before reductions and reimbursements) to average net assets		8.36	%(6)		9.17	%		9.30	%(6)
Ratio of net expenses to average net assets (7)		1.66	%(6)(8)		1.80	%(8)		1.81	%(6)
Ratio of net investment income to average net assets		4.47	%(6)		1.67	%		8.09	%(6)
Portfolio turnover rate		19.94	%(5)		67.23	%		37.68	%(5)

(1) Unaudited.

(2) Fund commenced operations on December 8, 2015.

(3) Calculated using average shares outstanding.

(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 Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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.

(8) Net expenses reflect a voluntary expense reimbursement to prevent a negative yield.

See accompanying Notes to the Financial Statements.

67

Barings Emerging Markets Local Currency Debt Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM DECEMBER 8, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.68		$	10.92		$	10.00
Income from investment operations:
Net investment income (3)		0.30			0.28			0.52
Net realized and unrealized gain on investments		0.18			0.67			0.73
Total increase from investment operations		0.48			0.95			1.25
Less dividends and distributions:
From net investment income		(0.29	)		(1.01	)		(0.33	)
From net realized gain		(0.08	)		(0.18	)		–
Total dividends and distributions		(0.37	)		(1.19	)		(0.33	)
Redemption fees		0.00			0.00			0.00
Net asset value, at end of period	$	10.79		$	10.68		$	10.92
Total investment return (4)		4.49	%(5)		9.84	%		12.73	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	7,639		$	2,564		$	2,621
Ratio of total expenses (before reductions and reimbursements) to average net assets		2.91	%(6)		4.32	%		4.03	%(6)
Ratio of net expenses to average net assets (7)		0.67	%(6)(8)		0.81	%(8)		0.84	%(6)
Ratio of net investment income to average net assets		5.40	%(6)		2.65	%		9.07	%(6)
Portfolio turnover rate		19.94	%(5)		67.23	%		37.68	%(5)

(1) Unaudited.

(2) Fund commenced operations on December 8, 2015.

(3) Calculated using average shares outstanding.

(4) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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 0.95% as a percentage of average daily net assets.

(8) Net expenses reflect a voluntary expense reimbursement to prevent a negative yield.

See accompanying Notes to the Financial Statements.

68

Barings Emerging Markets Local Currency Debt Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM DECEMBER 8, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.68		$	10.92		$	10.00
Income from investment operations:
Net investment income (3)		0.28			0.28			0.52
Net realized and unrealized gain on investments		0.20			0.67			0.73
Total increase from investment operations		0.48			0.95			1.25
Less dividends and distributions:
From net investment income		(0.29	)		(1.01	)		(0.33	)
From net realized gain		(0.08	)		(0.18	)		–
Total dividends and distributions		(0.37	)		(1.19	)		(0.33	)
Net asset value, at end of period	$	10.79		$	10.68		$	10.92
Total investment return (4)		4.50	%(5)		9.84	%		12.73	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	11,986		$	2,564		$	2,621
Ratio of total expenses (before reductions and reimbursements) to average net assets		2.67	%(6)		4.32	%		4.03	%(6)
Ratio of net expenses to average net assets (7)		0.77	%(6)(8)		0.81	%(8)		0.84	%(6)
Ratio of net investment income to average net assets		5.14	%(6)		2.65	%		9.07	%(6)
Portfolio turnover rate		19.94	%(5)		67.23	%		37.68	%(5)

(1) Unaudited.

(2) Fund commenced operations on December 8, 2015.

(3) Calculated using average shares outstanding.

(4) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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 0.95% as a percentage of average daily net assets.

(8) Net expenses reflect a voluntary expense reimbursement to prevent a negative yield.

See accompanying Notes to the Financial Statements.

69

Barings Global High Yield Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.44		$	10.05		$	10.00
Income from investment operations:
Net investment income (3)		0.30			0.64			0.38
Net realized and unrealized gain (loss) on investments		(0.10	)		0.77			0.05
Total increase from investment operations		0.20			1.41			0.43
Less dividends and distributions:
From net investment income		(0.30	)		(0.64	)		(0.38	)
From net realized gain		(0.25	)		(0.38	)		–
Total dividends and distributions		(0.55	)		(1.02	)		(0.38	)
Net asset value, at end of period	$	10.09		$	10.44		$	10.05
Total investment return (4)		1.93	%(5)		14.61	%		4.45	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	108		$	111		$	101
Ratio of total expenses (before reductions and reimbursements) to average net assets		6.48	%(6)		6.27	%		7.14	%(6)
Ratio of net expenses to average net assets (7)		1.05	%(6)		1.05	%		1.04	%(6)
Ratio of net investment income to average net assets		5.80	%(6)		6.20	%		5.83	%(6)
Portfolio turnover rate		32.79	%(5)		87.34	%		83.24	%(5)

(1) Unaudited.

(2) Fund commenced operations on October 30, 2015.

(3) Calculated using average shares outstanding.

(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 Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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.

See accompanying Notes to the Financial Statements.

70

Barings Global High Yield Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.44		$	10.05		$	10.00
Income from investment operations:
Net investment income (3)		0.27			0.56			0.33
Net realized and unrealized gain (loss) on investments		(0.10	)		0.77			0.05
Total increase from investment operations		0.17			1.33			0.38
Less dividends and distributions:
From net investment income		(0.27	)		(0.56	)		(0.33	)
From net realized gain		(0.25	)		(0.38	)		–
Total dividends and distributions		(0.52	)		(0.94	)		(0.33	)
Net asset value, at end of period	$	10.09		$	10.44		$	10.05
Total investment return (4)		1.55	%(5)		13.75	%		3.94	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	243		$	247		$	101
Ratio of total expenses (before reductions and reimbursements) to average net assets		4.59	%(6)		4.94	%		7.89	%(6)
Ratio of net expenses to average net assets (7)		1.80	%(6)		1.80	%		1.78	%(6)
Ratio of net investment income to average net assets		5.05	%(6)		5.40	%		5.09	%(6)
Portfolio turnover rate		32.79	%(5)		87.34	%		83.24	%(5)

(1) Unaudited.

(2) Fund commenced operations on October 30, 2015.

(3) Calculated using average shares outstanding.

(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 Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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.

See accompanying Notes to the Financial Statements.

71

Barings Global High Yield Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.44		$	10.05		$	10.00
Income from investment operations:
Net investment income (3)		0.32			0.67			0.39
Net realized and unrealized gain (loss) on investments		(0.10	)		0.77			0.05
Total increase from investment operations		0.22			1.44			0.44
Less dividends and distributions:
From net investment income		(0.32	)		(0.67	)		(0.39	)
From net realized gain		(0.25	)		(0.38	)		–
Total dividends and distributions		(0.57	)		(1.05	)		(0.39	)
Net asset value, at end of period	$	10.09		$	10.44		$	10.05
Total investment return (4)		2.06	%(5)		14.90	%		4.62	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	12,513		$	12,947		$	12,466
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.43	%(6)		1.53	%		1.51	%(6)
Ratio of net expenses to average net assets (7)		0.80	%(6)		0.80	%		0.79	%(6)
Ratio of net investment income to average net assets		6.05	%(6)		6.46	%		6.08	%(6)
Portfolio turnover rate		32.79	%(5)		87.34	%		83.24	%(5)

(1) Unaudited.

(2) Fund commenced operations on October 30, 2015.

(3) Calculated using average shares outstanding.

(4) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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 .80% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

72

Barings Global High Yield Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.44		$	10.05		$	10.00
Income from investment operations:
Net investment income (3)		0.32			0.67			0.39
Net realized and unrealized gain (loss) on investments		(0.10	)		0.77			0.05
Total increase from investment operations		0.22			1.44			0.44
Less dividends and distributions:
From net investment income		(0.32	)		(0.67	)		(0.39	)
From net realized gain		(0.25	)		(0.38	)		–
Total dividends and distributions		(0.57	)		(1.05	)		(0.39	)
Net asset value, at end of period	$	10.09		$	10.44		$	10.05
Total investment return (4)		2.06	%(5)		14.90	%		4.62	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	13,634		$	14,535		$	12,604
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.43	%(6)		1.53	%		1.51	%(6)
Ratio of net expenses to average net assets (7)		0.80	%(6)		0.80	%		0.79	%(6)
Ratio of net investment income to average net assets		6.05	%(6)		6.45	%		6.08	%(6)
Portfolio turnover rate		32.79	%(5)		87.34	%		83.24	%(5)

(1) Unaudited.

(2) Fund commenced operations on October 30, 2015.

(3) Calculated using average shares outstanding.

(4) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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 .80% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

73

Barings U.S. High Yield Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.59		$	10.14		$	10.00
Income from investment operations:
Net investment income (3)		0.31			0.65			0.39
Net realized and unrealized gain (loss) on investments		(0.14	)		0.65			0.13
Total increase from investment operations		0.17			1.30			0.52
Less dividends and distributions:
From net investment income		(0.32	)		(0.66	)		(0.38	)
From net realized gain		(0.30	)		(0.19	)		–
Total dividends and distributions		(0.62	)		(0.85	)		(0.38	)
Net asset value, at end of period	$	10.14		$	10.59		$	10.14
Total investment return (4)		1.54	%(5)		13.13	%		5.36	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	2,404		$	2,633		$	206
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.68	%(6)		1.82	%		5.47	%(6)
Ratio of net expenses to average net assets (7)		1.00	%(6)		1.00	%		0.99	%(6)
Ratio of net investment income to average net assets		5.93	%(6)		6.21	%		5.93	%(6)
Portfolio turnover rate		27.53	%(5)		71.57	%		77.52	%(5)

(1) Unaudited.

(2) Fund commenced operations on October 30, 2015.

(3) Calculated using average shares outstanding.

(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 Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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 1.00% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

74

Barings U.S. High Yield Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.59		$	10.14		$	10.00
Income from investment operations:
Net investment income (3)		0.27			0.58			0.33
Net realized and unrealized gain (loss) on investments		(0.15	)		0.64			0.14
Total increase from investment operations		0.12			1.22			0.47
Less dividends and distributions:
From net investment income		(0.27	)		(0.58	)		(0.33	)
From net realized gain		(0.30	)		(0.19	)		–
Total dividends and distributions		(0.57	)		(0.77	)		(0.33	)
Net asset value, at end of period	$	10.14		$	10.59		$	10.14
Total investment return (4)		1.20	%(5)		12.24	%		4.85	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	114		$	118		$	101
Ratio of total expenses (before reductions and reimbursements) to average net assets		6.35	%(6)		6.18	%		7.30	%(6)
Ratio of net expenses to average net assets (7)		1.75	%(6)		1.75	%		1.73	%(6)
Ratio of net investment income to average net assets		5.18	%(6)		5.50	%		5.08	%(6)
Portfolio turnover rate		27.53	%(5)		71.57	%		77.52	%(5)

(1) Unaudited.

(2) Fund commenced operations on October 30, 2015.

(3) Calculated using average shares outstanding.

(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 Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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 1.75% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

75

Barings U.S. High Yield Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.59		$	10.14		$	10.00
Income from investment operations:
Net investment income (3)		0.33			0.68			0.40
Net realized and unrealized gain (loss) on investments		(0.15	)		0.64			0.13
Total increase from investment operations		0.18			1.32			0.53
Less dividends and distributions:
From net investment income		(0.33	)		(0.68	)		(0.39	)
From net realized gain		(0.30	)		(0.19	)		–
Total dividends and distributions		(0.63	)		(0.87	)		(0.39	)
Net asset value, at end of period	$	10.14		$	10.59		$	10.14
Total investment return (4)		1.71	%(5)		13.36	%		5.53	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	15,208		$	15,720		$	14,863
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.27	%(6)		1.36	%		1.38	%(6)
Ratio of net expenses to average net assets (7)		0.75	%(6)		0.75	%		0.74	%(6)
Ratio of net investment income to average net assets		6.18	%(6)		6.50	%		6.11	%(6)
Portfolio turnover rate		27.53	%(5)		71.57	%		77.52	%(5)

(1) Unaudited.

(2) Fund commenced operations on October 30, 2015.

(3) Calculated using average shares outstanding.

(4) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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.

See accompanying Notes to the Financial Statements.

76

Barings U.S. High Yield Fund 2017 Semi-Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017 (1)			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (2)
Per Common Share Data
Net asset value, beginning of period	$	10.58		$	10.14		$	10.00
Income from investment operations:
Net investment income (3)		0.33			0.68			0.39
Net realized and unrealized gain (loss) on investments		(0.14	)		0.63			0.14
Total increase from investment operations		0.19			1.31			0.53
Less dividends and distributions:
From net investment income		(0.33	)		(0.68	)		(0.39	)
From net realized gain		(0.30	)		(0.19	)		–
Total dividends and distributions		(0.63	)		(0.87	)		(0.39	)
Net asset value, at end of period	$	10.14		$	10.58		$	10.14
Total investment return (4)		1.71	%(5)		13.35	%		5.52	%(5)
Supplemental Data and Ratios
Net assets, end of period (000’s)	$	15,088		$	14,631		$	12,675
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.28	%(6)		1.36	%		1.42	%(6)
Ratio of net expenses to average net assets (7)		0.75	%(6)		0.75	%		0.74	%(6)
Ratio of net investment income to average net assets		6.18	%(6)		6.50	%		6.06	%(6)
Portfolio turnover rate		27.53	%(5)		71.57	%		77.52	%(5)

(1) Unaudited.

(2) Fund commenced operations on October 30, 2015.

(3) Calculated using average shares outstanding.

(4) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the Fund’s dividend reinvestment plan.

(5) Not annualized.

(6) Annualized for periods less than one full year.

(7) 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.

See accompanying Notes to the Financial Statements.

77

Barings Global Floating Rate Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS

December 31, 2017 (Unaudited)

						SHARES		COST		FAIR VALUE
Equities — 0.2%*:
Common Stocks — 0.1%*:
Healthcare, Education and Childcare — 0.0%*:
Tunstall Group Holdings Ltd.+¤							469		$—		$—
Tunstall Group Holdings Ltd.+¤							310		—		—
Total Healthcare, Education and Childcare							779		—		—
Mining, Steel, Iron and Non-Precious Metals — 0.0%*:
Boomerang Tube LLC¤							2,007		—		—
Oil and Gas — 0.1%*:
Paragon Offshore Finance Co.							993		14,895		18,122
Paragon Offshore Finance Co.							993		496		993
Sabine Oil & Gas LLC¤							387		22,597		17,415
Sabine Oil & Gas LLC¤							1,230		5,523		7,995
Sabine Oil & Gas LLC¤							219		596		1,205
Southcross Energy Holdings LP							22		—		—
Southcross Energy Partners LP							22		5,500		7,425
Templar Energy LLC¤							8,762		50,647		22,783
Templar Energy LLC¤							5,602		56,021		51,819
Total Oil and Gas							18,230		156,275		127,757
Total Common Stocks							21,016		156,275		127,757
Preferred Stock — 0.1%*:
Farming and Agriculture — 0.1%*:
Pinnacle Agriculture Holdings A 2¤							259,648		173,408		236,280
Total Equities							280,664		329,683		364,037
	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 94.0%*:
Bank Loans — 85.6%*§:
Aerospace and Defense — 1.5%*:
Doncasters Finance US LLC, 3M LIBOR + 3.500%		5.19	%		4/9/2020		1,671,044		1,644,390		1,614,947
TransDigm, Inc., 1M LIBOR + 2.750%+		4.32			5/13/2022		1,496,250		1,499,359		1,499,841
Total Aerospace and Defense							3,167,294		3,143,749		3,114,788
Automobile — 1.3%*:
Dragon Merger Sub LLC, 3M LIBOR + 4.000%		5.69			7/24/2024		309,848		308,394		312,367
FPC Holdings, Inc., 3M LIBOR + 4.000%		5.69			11/19/2019		471,742		437,164		469,266
Gates Global LLC, 3M LIBOR + 3.000%		4.69			3/31/2024		1,045,285		1,048,141		1,050,365
NN, Inc., 1M LIBOR + 4.250%		5.32			10/19/2022		842,102		843,853		846,843
Total Automobile							2,668,977		2,637,552		2,678,841

See accompanying Notes to the Financial Statements.

78

Barings Global Floating Rate Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Beverage, Food and Tobacco — 2.8%*:
CTI Foods Holding Co. LLC, 1M LIBOR + 3.500%		5.07	%		6/29/2020		1,371,856		$1,365,557		$1,203,804
Del Monte Foods, Inc., 3M LIBOR + 3.250%		4.70			2/18/2021		229,792		209,558		182,522
Deoleo S.A., EURIBOR + 3.500%+		4.50			6/11/2021		500,000		677,963		401,949
JBS USA LLC, 3M LIBOR + 2.500%		4.10			10/30/2022		1,943,354		1,937,677		1,907,887
Labeyrie Fine Foods SAS, EURIBOR + 4.250%+		3.92			5/23/2023		500,000		553,591		603,422
Refresco Group B.V.+		2.75			9/30/2024		500,000		585,109		599,283
Refresco Group B.V.+		3.25			1/31/2025		500,000		585,333		596,925
Refresco Group B.V.+		4.44			9/26/2024		159,042		158,644		159,042
Refresco Group B.V.+		4.94			1/31/2025		159,042		158,247		158,446
Total Beverage, Food and Tobacco							5,863,086		6,231,679		5,813,280
Broadcasting and Entertainment — 3.3%*:
All3Media International, 6M LIBOR + 4.250%+		5.25			6/30/2021		1,500,000		2,304,350		2,020,588
All3Media International, EURIBOR + 7.250%+		8.25			6/30/2022		500,000		673,052		601,053
AP NMT Acquisition B.V., EURIBOR + 6.000%+		7.00			8/13/2021		526,788		640,495		621,270
AP NMT Acquisition B.V., 3M LIBOR + 5.750%+		7.09			8/13/2021		1,093,369		1,043,278		1,084,623
AP NMT Acquisition B.V., 3M LIBOR + 9.000%+		10.34			8/13/2022		182,721		160,406		177,330
Intelsat Jackson Holdings S.A., 3M LIBOR + 2.750%		4.21			6/30/2019		547,478		546,874		545,682
Intelsat Jackson Holdings S.A., 3M LIBOR + 3.750%		5.21			11/9/2023		750,000		747,579		733,657
Technicolor S.A., EURIBOR + 3.000%+		3.00			12/31/2023		500,000		538,456		599,925
Univision Communications, Inc.		4.32			3/15/2024		498,648		496,218		496,709
Total Broadcasting and Entertainment							6,099,004		7,150,708		6,880,837
Buildings and Real Estate — 2.0%*:
Capital Automotive L.P., 3M LIBOR + 6.000%		7.57			3/24/2025		298,553		295,852		306,017
Core & Main L.P., 6M LIBOR + 3.000%		4.46			8/1/2024		1,500,000		1,512,147		1,510,320
PowerTeam Services LLC, 3M LIBOR + 7.250%		8.94			11/6/2020		500,000		497,942		500,000
Quikrete Holdings, Inc., 1M LIBOR + 2.750%		4.32			11/15/2023		1,451,381		1,451,523		1,453,195
VICI Properties, Inc., 3M LIBOR + 2.250%		3.78			12/20/2024		332,679		331,848		332,679
Total Buildings and Real Estate							4,082,613		4,089,312		4,102,211
Cargo Transport — 0.2%*:
Kenan Advantage Group, Inc., 1M LIBOR + 3.000%		4.57			7/31/2022		452,234		454,332		453,175
Total Cargo Transport							452,234		454,332		453,175

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Chemicals, Plastics and Rubber — 6.2%*:
Albaugh LLC		5.19	%		12/4/2024		701,731		$706,227		$707,436
Allnex (Luxembourg) & Cy S.C.A., EURIBOR + 3.250%+		3.25			9/13/2023		691,250		782,207		829,653
Allnex (Luxembourg) & Cy S.C.A., 3M LIBOR + 3.250%		4.71			9/13/2023		422,396		420,667		424,774
Allnex USA, Inc., 3M LIBOR + 3.250%		4.71			9/13/2023		318,229		316,926		320,021
Alpha 3 B.V., 3M LIBOR + 3.000%		4.69			1/31/2024		1,584,754		1,595,179		1,593,344
Associated Asphalt Partners LLC, 1M LIBOR + 5.250%		6.82			4/5/2024		292,444		291,134		263,930
Colouroz Investment 1 GmbH+		3.75			9/7/2021		331,380		390,221		348,733
Diversey+		Zero Coupon			9/6/2024		500,000		590,875		598,803
Flint Group GmbH+		3.75			9/7/2021		265,560		312,713		279,465
Flint Group GmbH, 3M LIBOR + 3.000%+		4.36			9/7/2021		88,731		88,258		77,141
Flint Group US LLC, 3M LIBOR + 3.000%+		4.36			9/7/2021		536,750		533,890		466,640
KMG Chemicals, Inc., 1M LIBOR + 4.250%		4.32			6/15/2024		125,180		124,600		125,389
MacDermid, Inc., EURIBOR + 2.500%		3.25			6/7/2020		412,929		485,610		497,127
MacDermid, Inc., 1M LIBOR + 2.500%		4.07			6/5/2020		1,253,335		1,256,419		1,260,642
Methanol Holdings (Trinidad) Ltd., 1M LIBOR + 3.500%		5.07			6/30/2022		1,107,074		1,099,945		1,107,074
Novacap S.A., EURIBOR + 3.500%+		3.50			6/22/2023		500,000		558,652		599,553
Pinnacle Operating Corp., 1M LIBOR + 7.250%		8.82			11/15/2021		709,684		664,344		665,328
Tronox Blocked Borrower LLC, 3M LIBOR + 3.000%		4.69			9/22/2024		482,838		480,501		485,595
Tronox Finance LLC, 3M LIBOR + 3.000%		4.69			9/22/2024		1,114,241		1,108,847		1,120,603
Univar Inc.		4.07			7/1/2024		994,994		998,665		998,188
Total Chemicals, Plastics and Rubber							12,433,500		12,805,880		12,769,439
Containers, Packaging and Glass — 3.8%*:
BWAY Holding Co., 1M LIBOR + 3.250%		4.60			4/3/2024		1,492,500		1,485,731		1,497,828
Coveris Holdings S.A., EURIBOR + 4.000%		5.00			6/29/2022		598,442		697,661		712,654
Flex Acquisition Co., Inc., 3M LIBOR + 3.000%		4.34			12/29/2023		1,591,940		1,609,172		1,598,913
Horizon Holdings III S.A.S.+		2.75			10/28/2022		1,390,909		1,662,310		1,661,822
ProAmpac PG Borrower LLC, 1M LIBOR + 4.000%		4.95			11/18/2023		744,375		747,542		749,727
ProAmpac PG Borrower LLC, 3M LIBOR + 8.500%		9.94			11/18/2024		750,000		740,308		761,250
W/S Packaging Group, Inc., 1M LIBOR + 5.000%		6.57			8/9/2019		925,360		860,305		874,466
Total Containers, Packaging and Glass							7,493,526		7,803,029		7,856,660

See accompanying Notes to the Financial Statements.

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Barings Global Floating Rate Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Diversified/Conglomerate Manufacturing — 3.3%*:
LTI Holdings, Inc., 1M LIBOR + 4.750%		6.32	%		5/16/2024		821,849		$814,180		$824,931
Misys Europe S.A., EURIBOR + 3.250%+		4.25			6/13/2024		498,750		540,620		601,166
MTS Systems Corp., 1M LIBOR + 3.250%		4.69			7/5/2023		372,200		374,764		374,992
PCF GmbH, EURIBOR + 3.250%+		4.00			8/1/2024		500,000		524,768		600,524
Pelican Products, Inc., 3M LIBOR + 4.250%		5.94			4/11/2020		957,889		956,821		961,481
Project Alpha Intermediate Holding, Inc., 3M LIBOR + 3.500%		5.04			4/26/2024		592,127		589,442		578,555
Triple Point Technology, Inc., 3M LIBOR + 4.250%		5.94			7/10/2020		1,616,914		1,548,437		1,469,371
Triple Point Technology, Inc., 3M LIBOR + 8.250%††		9.94			7/10/2021		258,851		238,405		209,022
Wilsonart LLC, 3M LIBOR + 3.250%		4.95			12/19/2023		609,463		610,076		612,662
Xella International GmbH+		4.00			1/31/2024		500,000		588,325		599,673
Total Diversified/Conglomerate Manufacturing							6,728,043		6,785,838		6,832,377
Diversified/Conglomerate Service — 10.7%*:
Advantage Sales & Marketing, Inc., 1M LIBOR + 3.250%		4.63			7/23/2021		758,580		747,612		738,432
Almonde, Inc., 3M LIBOR + 3.500%+		4.98			6/13/2024		558,519		555,944		559,876
Almonde, Inc., 3M LIBOR + 7.250%+		8.73			6/13/2025		752,587		766,676		752,775
Aramark Services, Inc., 1M LIBOR + 2.000%		3.57			3/11/2025		404,273		404,273		406,169
EAB (Avatar Purchaser)		5.24			9/6/2024		757,099		753,375		760,885
Evertec Group LLC		3.96			4/17/2020		135,239		130,512		131,125
Hyland Software, Inc., 1M LIBOR + 3.250%		4.82			7/1/2022		994,988		1,004,176		1,000,589
I-Logic Technologies Bidco Ltd.		5.69			12/5/2024		1,512,013		1,509,953		1,504,453
Infor (US), Inc., EURIBOR + 2.250%		3.25			2/1/2022		497,500		590,218		597,486
Infor (US), Inc., 3M LIBOR + 2.750%		4.44			2/1/2022		1,488,750		1,489,776		1,493,410
Kronos, Inc., 3M LIBOR + 3.500%		4.90			11/1/2023		1,595,030		1,598,977		1,604,904
MA FinanceCo., LLC, 1M LIBOR + 2.750%		4.32			6/21/2024		246,297		246,624		246,297
MH Sub I LLC, 3M LIBOR + 3.750%		5.34			9/13/2024		573,526		571,697		574,816
Northgate Information Solutions Ltd., EURIBOR + 5.500%+		6.50			3/23/2022		500,000		527,833		599,175
Prime Security Services Borrower LLC, 1M LIBOR + 2.750%		4.32			5/2/2022		1,491,104		1,494,127		1,501,050
Project Leopard Holdings, Inc., 3M LIBOR + 5.500%		7.19			7/7/2023		504,096		507,323		506,934
Quest Software US Holdings Inc., 3M LIBOR + 5.500%		6.92			10/31/2022		1,483,997		1,488,808		1,505,990
Red Ventures LLC, 1M LIBOR + 4.000%		4.25			11/8/2024		1,322,736		1,322,668		1,320,421
Seattle Spinco, Inc., 1M LIBOR + 2.750%		4.32			6/21/2024		1,663,300		1,665,515		1,663,300
TierPoint LLC, 1M LIBOR + 3.750%		5.32			5/6/2024		266,510		265,298		264,346
Travelport Finance (Luxembourg) S.a.r.l., 3M LIBOR + 2.750%		4.17			9/2/2021		1,662,636		1,663,054		1,661,572

See accompanying Notes to the Financial Statements.

81

Barings Global Floating Rate Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Diversified/Conglomerate Service (Continued)
Verisure Holding AB, EURIBOR + 3.000%+		3.00	%		10/20/2022		700,000		$762,424		$833,755
VF Holding Corp., 1M LIBOR + 3.250%		4.82			6/30/2023		1,728,744		1,732,784		1,740,776
Total Diversified/Conglomerate Service							21,597,524		21,799,647		21,968,536
Ecological — 0.8%*:
Emerald 3 Ltd., 3M LIBOR + 7.000%		8.69			5/31/2022		390,426		388,241		369,441
Emerald US, Inc., 3M LIBOR + 4.000%		5.33			5/9/2021		594,977		559,450		592,252
PHS Group Ltd., 1M LIBOR + 5.250%+		6.25			12/20/2021		299,197		369,964		406,183
Wrangler Buyer Corp.		4.57			9/27/2024		267,791		267,791		269,320
Total Ecological							1,552,391		1,585,446		1,637,196
Electronics — 4.4%*:
First Data Corp., 1M LIBOR + 2.250%		3.80			7/8/2022		1,526,007		1,524,688		1,526,846
Informatica Corp., 3M LIBOR + 3.500%		5.19			8/5/2022		1,640,552		1,635,524		1,644,948
ION Trading Technologies S.a.r.l., EURIBOR + 2.750%+		3.75			11/30/2024		500,000		587,627		600,375
Renaissance Learning, Inc., 3M LIBOR + 3.750%		5.44			4/9/2021		1,740,448		1,729,297		1,749,150
RP Crown Parent LLC, 1M LIBOR + 3.500%		4.57			10/12/2023		1,760,231		1,756,064		1,766,832
Wall Street Systems Delaware, Inc., EURIBOR + 3.000%		4.00			11/30/2024		500,000		587,627		600,675
Wall Street Systems Delaware, Inc., 1M LIBOR + 3.000%		4.57			11/30/2024		1,162,777		1,162,776		1,163,939
Total Electronics							8,830,015		8,983,603		9,052,765
Farming and Agriculture — 0.7%*:
Dole Food Co. Inc., 1M LIBOR + 2.750%		4.24			4/6/2024		1,467,510		1,475,084		1,470,166
Finance — 5.4%*:
Cunningham Lindsey US, Inc., 3M LIBOR + 3.750%		5.44			12/10/2019		218,254		218,316		217,381
Cunningham Lindsey US, Inc., 3M LIBOR + 8.000%		9.69			6/10/2020		748,546		749,300		736,614
Focus Financial Partners LLC, 3M LIBOR + 3.250%		4.94			7/3/2024		1,795,500		1,818,569		1,811,211
Moneygram International, Inc., 3M LIBOR + 3.250%		4.94			3/27/2020		1,276,742		1,233,746		1,273,946
NAB Holdings LLC, 1M LIBOR + 3.250%		4.82			6/30/2024		997,494		1,007,171		999,369
Nets Holding A/S+		3.25			11/30/2024		500,000		592,675		600,393
NFP Corp., 1M LIBOR + 3.500%		5.07			1/8/2024		1,536,207		1,555,537		1,542,736
Tempo Acquisition LLC, 1M LIBOR + 3.000%		4.57			5/1/2024		1,629,015		1,628,503		1,622,221
Veritas Bermuda Ltd.		5.50			1/27/2023		794,000		885,231		958,635
Veritas Bermuda Ltd., 3M LIBOR + 4.500%		6.19			1/27/2023		1,290,250		1,285,659		1,292,405
Total Finance							10,786,008		10,974,707		11,054,911

See accompanying Notes to the Financial Statements.

82

Barings Global Floating Rate Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Healthcare, Education and Childcare — 10.3%*:
Arbor Pharmaceuticals, Inc., 3M LIBOR + 5.000%		6.69	%		7/5/2023		1,566,312		$1,552,231		$1,578,059
Cerba Healthcare S.A.S.+		3.00			3/22/2024		1,000,000		1,172,532		1,196,022
Change Healthcare Holdings, Inc., 1M LIBOR + 2.750%		4.32			3/1/2024		1,492,481		1,498,992		1,494,541
Domus Vi SA, EURIBOR + 3.250%+		3.25			10/31/2024		500,000		592,175		600,458
Endo Luxembourg Finance Co. I S.a r.l., 1M LIBOR + 4.250%		5.88			4/29/2024		549,014		546,529		551,759
Greatbatch Ltd., 1M LIBOR + 3.250%		4.66			10/27/2022		1,277,979		1,289,343		1,286,964
Horizon Pharma, Inc., 1M LIBOR + 3.250%		4.75			3/29/2024		1,000,000		1,006,155		1,003,440
Indivior Finance S.a.r.l., 3M LIBOR + 4.500%		6.11			12/31/2022		500,000		497,503		501,250
Jaguar Holding Co. II, 3M LIBOR + 2.750%		4.38			8/18/2022		1,498,879		1,500,168		1,500,243
Kindred Healthcare, Inc., 3M LIBOR + 3.500%		4.88			4/9/2021		1,664,629		1,631,136		1,668,790
Mallinckrodt International Finance S.A., 3M LIBOR + 2.750%		4.44			9/24/2024		1,246,859		1,246,859		1,243,967
Ortho-Clinical Diagnostics S.A., 3M LIBOR + 3.750%		5.44			6/30/2021		1,994,667		1,987,405		1,997,719
Press Ganey Holdings, Inc., 1M LIBOR + 3.000%		4.57			12/31/2022		1,237,500		1,241,992		1,244,467
Press Ganey Holdings, Inc., 1M LIBOR + 7.250%		8.07			10/21/2024		552,969		559,492		558,498
Riemser Pharma GmbH, EURIBOR + 5.500%+		5.50			6/29/2023		500,000		541,254		582,827
Rodenstock GmbH, EURIBOR + 4.500%+		4.13			5/30/2019		1,500,000		1,771,592		1,748,030
Team Health Holdings, Inc.		4.32			2/6/2024		997,487		972,550		970,685
Tunstall Group Holdings Ltd., PIK + 5.000%+		8.49			10/16/2020		508,189		806,694		697,068
Valeant Pharmaceuticals International, Inc., 1M LIBOR + 4.750%		4.94			4/1/2022		812,508		799,919		823,493
Total Healthcare, Education and Childcare							20,399,473		21,214,521		21,248,280
Home and Office Furnishings, Housewares, and Durable Consumer Products — 2.2%*:
Hayward Industries, Inc.		5.07			8/2/2024		997,500		1,004,752		998,747
Keter Group B.V., EURIBOR + 4.250%+		5.25			10/31/2023		500,000		520,454		601,599
Serta Simmons Bedding LLC, 3M LIBOR + 3.500%		4.85			11/8/2023		1,717,312		1,710,035		1,567,527
Serta Simmons Bedding LLC, 1M LIBOR + 8.000%		9.41			11/8/2024		474,667		468,526		403,467
Visual Comfort Generation Brands Holdings, Inc., 1M LIBOR + 8.000%		9.57			2/28/2025		933,333		928,921		939,166
Total Home and Office Furnishings, Housewares, and Durable Consumer Products							4,622,812		4,632,688		4,510,506

See accompanying Notes to the Financial Statements.

83

Barings Global Floating Rate Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Hotels, Motels, Inns and Gaming — 1.9%*:
Caesars Resort Collection LLC, 3M LIBOR + 2.750%		4.34	%		12/22/2024		1,000,000		$997,505		$1,003,930
Cyan Blue Holdco 3 Ltd., LIBOR—GBP + 4.250%+		4.77			7/31/2024		500,000		647,384		678,559
Financiere Sun S.A.S., EURIBOR + 3.250%+		3.25			3/14/2023		338,983		404,760		407,151
HNVR Holdco Ltd., EURIBOR + 5.000%+		3.25			9/12/2023		492,449		544,075		587,355
Tackle S.a.r.l., EURIBOR + 3.500%+		3.50			8/8/2022		1,000,000		1,116,496		1,197,414
Total Hotels, Motels, Inns and Gaming							3,331,432		3,710,220		3,874,409
Insurance — 6.0%*:
Alliant Holdings I, Inc., 3M LIBOR + 3.250%		4.80			8/12/2022		1,815,746		1,813,518		1,822,646
AmWINS Group, Inc., 1M LIBOR + 2.750%		4.28			1/25/2024		1,488,722		1,492,059		1,492,860
AssuredPartners, Inc., 1M LIBOR + 3.500%		5.07			10/22/2024		1,804,817		1,817,606		1,814,979
Asurion LLC, 1M LIBOR + 3.000%		4.57			11/3/2023		1,610,991		1,620,752		1,618,047
GENEX Holdings, Inc., 1M LIBOR + 4.250%		5.82			5/30/2021		1,465,823		1,462,491		1,452,088
Hub International Ltd., 3M LIBOR + 3.000%		4.41			10/2/2020		1,774,887		1,783,071		1,782,182
Sedgwick Claims Management Services, Inc., 1M LIBOR + 5.750%		7.32			2/28/2022		561,418		561,041		563,524
USI, Inc., 3M LIBOR + 3.000%		4.69			5/16/2024		242,936		242,287		242,431
York Risk Services Holding Corp., 1M LIBOR + 3.750%		5.32			10/1/2021		1,658,790		1,631,599		1,621,052
Total Insurance							12,424,130		12,424,424		12,409,809
Leisure, Amusement, Entertainment — 1.8%*:
Delta 2 (LUX) S.a.r.l., 1M LIBOR + 3.000%+		4.57			2/1/2024		1,587,247		1,583,733		1,594,850
Dorna Sports, S.L., EURIBOR + 3.000%+		3.00			4/12/2024		500,000		540,275		599,379
SeaWorld Parks & Entertainment, Inc., 3M LIBOR + 3.000%		4.69			3/31/2024		1,582,018		1,572,352		1,560,264
Total Leisure, Amusement, Entertainment							3,669,265		3,696,360		3,754,493
Machinery Non-Agriculture, Non-Construction, Non-Electronic — 2.1%*:
Alison Bidco S.a.r.l., 1M LIBOR + 4.500%+		5.88			8/29/2021		287,596		286,086		274,655
Apex Tool Group LLC, 1M LIBOR + 3.250%		4.82			1/31/2020		1,187,002		1,176,666		1,182,800
Gardner Denver, Inc., 3M LIBOR + 2.750%		4.44			7/30/2024		1,370,493		1,367,252		1,374,289
Husky Injection Molding Systems Ltd., 1M LIBOR + 3.250%+		4.82			6/30/2021		1,557,097		1,555,989		1,563,372
Total Machinery Non-Agriculture, Non-Construction, Non-Electronic							4,402,188		4,385,993		4,395,116
Mining, Steel, Iron and Non-Precious Metals — 2.9%*:
Big River Steel LLC, 3M LIBOR + 5.000%		6.69			8/23/2023		1,132,485		1,141,768		1,140,979
Boomerang Tube LLC¤††		15.00			2/2/2020		32,825		32,869		32,825
Boomerang Tube LLC, 1M LIBOR + 15.000%¤††		16.57			2/2/2020		111,754		111,754		111,754

See accompanying Notes to the Financial Statements.

84

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Mining, Steel, Iron and Non-Precious Metals (Continued)
Boomerang Tube LLC, 1M LIBOR + 17.500%¤††		19.07	%		2/1/2021		95,536		$95,536		$10,509
Boomerang Tube LLC¤††		20.00			2/2/2020		42,133		40,647		37,920
Fairmount Santrol, Inc., 3M LIBOR + 6.000%		7.69			11/1/2022		1,487,879		1,466,235		1,503,130
H.C. Starck GmbH, EURIBOR + 7.000%+		8.00			5/30/2020		518,710		558,396		641,935
H.C. Starck GmbH, 6M LIBOR + 7.000%+		8.84			5/30/2020		521,802		503,621		537,456
Murray Energy Corp., 3M LIBOR + 7.250%		8.94			4/16/2020		2,162,457		2,073,796		1,897,556
Total Mining, Steel, Iron and Non-Precious Metals							6,105,581		6,024,622		5,914,064
Oil and Gas — 3.7%*:
Caelus Energy Alaska O3 LLC, 3M LIBOR + 7.500%		9.10			4/15/2020		1,499,143		1,417,632		1,326,741
Fieldwood Energy LLC PIK, 3M LIBOR + 7.125%		8.82			9/30/2020		2,613,837		1,883,786		1,155,038
Floatel International, Ltd., 3M LIBOR + 5.000%		6.69			6/27/2020		396,078		394,413		300,524
Gulf Finance LLC, 3M LIBOR + 5.250%		6.95			8/25/2023		970,455		946,895		868,965
Paragon Offshore Finance Co., 3M LIBOR + 6.000%		7.35			7/18/2022		34,315		30,787		28,939
Seadrill Partners Finco LLC, 3M LIBOR + 3.000%		4.69			2/21/2021		2,428,912		1,758,703		1,955,274
Southcross Holdings Borrower LP		9.00			4/13/2023		21,153		21,153		20,730
UTEX Industries, Inc., 1M LIBOR + 4.000%		5.57			5/22/2021		982,941		870,587		961,640
UTEX Industries, Inc., 1M LIBOR + 7.250%		8.82			5/22/2022		1,000,000		629,756		945,830
Total Oil and Gas							9,946,834		7,953,712		7,563,681
Personal, Food and Miscellaneous — 0.8%*:
Atrium Innovations, Inc., 3M LIBOR + 3.500%		4.94			2/13/2021		1,595,178		1,589,588		1,599,166
Printing and Publishing — 1.2%*:
Ascend Learning LLC, 1M LIBOR + 3.250%		4.57			7/12/2024		701,113		703,736		704,619
Springer Science+Business Media Deutschland GmbH, 2M LIBOR + 3.500%+		4.98			8/31/2022		1,688,947		1,694,135		1,692,696
Total Printing and Publishing							2,390,060		2,397,871		2,397,315
Retail Stores — 2.1%*:
Eyemart Express LLC, 1M LIBOR + 3.000%		4.39			8/2/2024		1,584,070		1,590,538		1,584,735
Staples, Inc., 3M LIBOR + 4.000%		5.49			9/12/2024		1,750,000		1,742,065		1,714,125
Talbots, Inc., 1M LIBOR + 4.500%		6.07			3/19/2020		318,118		304,731		307,302
Thom Europe S.A.S, EURIBOR + 4.500%+		4.50			8/7/2024		500,000		575,710		599,552
Total Retail Stores							4,152,188		4,213,044		4,205,714
Telecommunications — 2.0%*:
Digicel International Finance Ltd., 3M LIBOR + 3.750%+		5.31			5/28/2024		785,143		788,075		788,087
GTCR Valor Cos., Inc., 3M LIBOR + 4.250%		5.94			6/16/2023		472,316		471,209		477,238
Numericable Group SA, 3M LIBOR + 2.750%+		4.13			7/31/2025		995,000		992,719		948,732

See accompanying Notes to the Financial Statements.

85

Barings Global Floating Rate Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Telecommunications (Continued)
Sprint Communications, Inc., 1M LIBOR + 2.500%		4.13	%		2/3/2024		1,492,481		$1,499,525		$1,491,362
Ziggo Secured Finance Partnership+		3.98			4/15/2025		500,000		501,217		495,625
Total Telecommunications							4,244,940		4,252,745		4,201,044
Utilities — 2.2%*:
Calpine Construction Finance Co., L.P., 1M LIBOR + 2.500%		4.07			1/31/2025		640,156		639,887		639,356
Calpine Corp.		4.20			1/16/2024		997,443		997,443		995,478
Dynegy Inc., 1M LIBOR + 2.750%		4.25			2/7/2024		1,361,358		1,366,747		1,367,035
Helix Gen Funding LLC, 3M LIBOR + 3.750%		5.44			6/2/2024		505,834		505,764		506,992
Vistra Operations Co. LLC, 1M LIBOR + 3.250%		4.20			12/14/2023		1,078,799		1,088,205		1,086,124
Total Utilities							4,583,590		4,598,046		4,594,985
Total Bank Loans							175,089,396		177,014,400		176,353,764
Corporate Bonds — 8.4%*:
Automobile — 0.5%*:
AA Bond Co. Ltd.+		5.50			7/31/2022		700,000		938,419		949,472
RAC Bond Co. PLC+		5.00			11/6/2022		100,000		128,880		134,444
Total Automobile							800,000		1,067,299		1,083,916
Beverage, Food and Tobacco — 0.2%*:
1011778 BC ULC/New Red Finance, Inc.+^		5.00			10/15/2025		327,000		327,000		329,452
Premier Foods Finance PLC+		6.50			3/15/2021		100,000		146,216		137,378
Total Beverage, Food and Tobacco							427,000		473,216		466,830
Broadcasting and Entertainment — 0.2%*:
Entertainment One Ltd.+		6.88			12/15/2022		100,000		150,212		145,276
VTR Finance BV+^		6.88			1/15/2024		211,000		214,006		222,605
Total Broadcasting and Entertainment							311,000		364,218		367,881
Cargo Transport — 0.5%*:
Deck Chassis Acquisition, Inc.^		10.00			6/15/2023		861,000		907,273		957,863
WFS Global Holding SAS+		9.50			7/15/2022		100,000		113,435		127,886
Total Cargo Transport							961,000		1,020,708		1,085,749
Chemicals, Plastics and Rubber — 0.3%*:
Monitchem HoldCo 3 SA, 3 mo. EURIBOR + 4.750%+		4.42	#		6/15/2021		150,000		174,654		178,853
Pinnacle Operating Corp.^		9.00			5/15/2023		378,294		469,277		351,813
Total Chemicals, Plastics and Rubber							528,294		643,931		530,666

See accompanying Notes to the Financial Statements.

86

Barings Global Floating Rate Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Containers, Packaging and Glass — 0.5%*:
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.+^		4.63	%		5/15/2023		500,000		$502,477		$510,150
BWAY Holding Co.^		5.50			4/15/2024		300,000		300,000		312,000
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu^		5.13			7/15/2023		178,000		178,000		184,230
Total Containers, Packaging and Glass							978,000		980,477		1,006,380
Diversified/Conglomerate Manufacturing — 0.2%*:
Appvion, Inc.^~		9.00			6/1/2020		460,000		464,217		69,000
Galapagos S.A., 3 mo. EURIBOR + 4.750%+		4.42	#		6/15/2021		200,000		272,630		233,275
Total Diversified/Conglomerate Manufacturing							660,000		736,847		302,275
Diversified/Conglomerate Service — 0.7%*:
Carlson Travel, Inc., 3 mo. EURIBOR + 4.750%		4.75	#		6/15/2023		450,000		518,907		522,849
Prime Security Services Borrower LLC/Prime Finance, Inc.^		9.25			5/15/2023		271,000		271,000		300,810
Sabre GLBL, Inc.^		5.38			4/15/2023		561,000		569,498		577,830
Total Diversified/Conglomerate Service							1,282,000		1,359,405		1,401,489
Electronics — 0.1%*:
First Data Corp.^		5.00			1/15/2024		179,000		178,094		184,146
Finance — 0.8%*:
Arrow Global Finance PLC, 3 mo. EURIBOR + 4.750%+		4.75	#		5/1/2023		100,000		111,463		122,307
Galaxy Bidco Ltd., 3M GBP LIBOR + 5.000%+		5.53	#		11/15/2019		100,000		161,331		134,948
Garfunkelux Holdco 3 S.A.+		8.50			11/1/2022		250,000		386,454		352,727
Jerrold Finco PLC+		6.13			1/15/2024		100,000		124,555		137,580
Veritas US, Inc./Veritas Bermuda Ltd.^		7.50			2/1/2023		817,000		869,849		855,807
Total Finance							1,367,000		1,653,652		1,603,369
Healthcare, Education and Childcare — 0.7%*:
CHS/Community Health Systems, Inc.		5.13			8/1/2021		959,000		945,828		863,100
HCA, Inc.		5.25			6/15/2026		82,000		82,000		86,920
IDH Finance PLC+		6.25			8/15/2022		100,000		131,025		123,464
Tenet Healthcare Corp.^		4.63			7/15/2024		151,000		151,000		147,225
Tenet Healthcare Corp.^		5.13			5/1/2025		104,000		104,000		101,400
Valeant Pharmaceuticals International, Inc.^		5.50			11/1/2025		165,000		165,000		167,887
Total Healthcare, Education and Childcare							1,561,000		1,578,853		1,489,996
Hotels, Motels, Inns and Gaming — 0.2%*:
TVL Finance PLC+		8.50			5/15/2023		315,000		443,041		462,298

See accompanying Notes to the Financial Statements.

87

Barings Global Floating Rate Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Leisure, Amusement, Entertainment — 0.2%*:
CPUK Finance Ltd.+		4.88	%		8/28/2025		100,000		$134,095		$137,210
Vue International Bidco PLC, 3 mo. EURIBOR + 5.250%+		4.92	#		7/15/2020		100,000		134,569		119,985
WMG Acquisition Corp.^		5.00			8/1/2023		63,000		63,000		65,205
Total Leisure, Amusement, Entertainment							263,000		331,664		322,400
Oil and Gas — 1.1%*:
Citgo Holding, Inc.^		10.75			2/15/2020		1,500,000		1,487,804		1,608,750
EP Energy LLC/Everest Acquisition Finance, Inc.^		8.00			2/15/2025		713,000		615,910		520,490
Kosmos Energy Ltd.^		7.88			8/1/2021		150,000		145,676		153,375
Total Oil and Gas							2,363,000		2,249,390		2,282,615
Personal Transportation — 0.5%*:
Hertz Corp. (The)^		7.63			6/1/2022		1,051,000		1,048,733		1,100,923
Retail Stores — 0.4%*:
House of Fraser Funding PLC, 3M GBP LIBOR + 5.750%+		6.27	#		9/15/2020		300,000		465,405		354,136
HSS Financing PLC+		6.75			8/1/2019		68,000		112,557		84,465
Marcolin SpA, 3 mo. EURIBOR + 4.125%+		4.13	#		2/15/2023		100,000		107,795		120,885
Maxeda DIY Holding B.V.+		6.13			7/15/2022		100,000		114,070		120,678
Takko Luxembourg 2 SCA+		5.38			11/15/2023		100,000		116,475		116,431
Travelex Financing PLC+		8.00			5/15/2022		100,000		108,750		121,545
Total Retail Stores							768,000		1,025,052		918,140
Telecommunications — 1.3%*:
Hughes Satellite Systems Corp.		5.25			8/1/2026		1,388,000		1,397,304		1,415,760
SFR Group SA+^		6.00			5/15/2022		646,000		645,477		654,075
Wind Tre SpA, 3 mo. EURIBOR + 2.750%+		2.75	#		1/20/2024		200,000		235,210		235,823
Ziggo Secured Finance B.V.+		4.25			1/15/2027		350,000		390,408		435,864
Total Telecommunications							2,584,000		2,668,399		2,741,522
Total Corporate Bonds							16,398,294		17,822,979		17,350,595
Total Fixed Income							191,487,690		194,837,379		193,704,359
Short-Term Investments — 10.0%*:
Bank Deposit — 10.0%*:
State Street Bank & Trust Co. Euro Time Deposit		0.12			1/2/2018		20,524,938		20,524,938		20,524,938
Total Investments							212,293,292		215,692,000		214,593,334
Other assets and liabilities – (4.2%)*											(8,614,203	)
Net Assets – 100.0%											$205,979,131

See accompanying Notes to the Financial Statements.

88

Barings Global Floating Rate Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

MTN Medium Term Note

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	77.2%
United Kingdom	6.2%
Germany	4.9%
France	4.1%
Netherlands	2.9%
Luxembourg	1.1%
Canada	1.0%
Other (Individually less than 1%)	2.6%
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 December 31, 2017. 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 December 31, 2017.

A summary of outstanding derivatives at December 31, 2017 is as follows:

Forward Foreign Currency Exchange Contracts to Buy

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
1/12/18	Morgan Stanley & Co.		EUR	522,399		627,133		618,224	$	8,909
1/12/18	Credit Suisse International		EUR	526,415		631,954		632,728		(774	)
1/12/18	Morgan Stanley & Co.		GBP	345,456		466,548		462,782		3,766
Net unrealized appreciation on forward foreign currency exchange contracts to buy									$	11,901

See accompanying Notes to the Financial Statements.

89

Barings Global Floating Rate Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

Forward Foreign Currency Exchange Contracts to Sell

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
1/3/18	Credit Suisse International		EUR	526,415		631,619		632,388	$	769
1/12/18	Credit Suisse International		EUR	708,731		850,822		836,675		(14,147	)
1/12/18	Morgan Stanley & Co.		EUR	20,940,226		25,138,449		24,778,105		(360,344	)
1/12/18	Morgan Stanley & Co.		GBP	5,678,550		7,669,048		7,664,842		(4,206	)
Net unrealized depreciation on forward foreign currency exchange contracts to sell									$	(377,928	)

Currency Legend

EUR	–	Euro
GBP	–	British Pound Sterling

See accompanying Notes to the Financial Statements.

90

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS

December 31, 2017 (Unaudited)

						SHARES		COST		FAIR VALUE
Equities — 0.5%*:
Common Stocks — 0.3%*:
Mining, Steel, Iron and Non-Precious Metals — 0.0%*:
Boomerang Tube LLC¤							2,007		$—		$—
Oil and Gas — 0.0%*:
Paragon Offshore Finance Co.							873		13,095		15,932
Paragon Offshore Finance Co.							873		436		873
Southcross Energy Holdings LP							11		—		—
Southcross Energy Partners LP							11		2,750		3,713
Total Oil and Gas							1,768		16,281		20,518
Retail Stores — 0.3%*:
Maxeda DIY B.V.+¤							18,859,871		373,738		452,580
Maxeda DIY B.V.+¤							10,446		—		113,154
Total Retail Stores							18,870,317		373,738		565,734
Total Common Stocks							18,874,092		390,019		586,252
Preferred Stock — 0.2%*:
Farming and Agriculture — 0.2%*:
Pinnacle Agriculture Holdings A 2¤							311,577		202,152		283,535
Total Equities							19,185,669		592,171		869,787
	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 92.7%*:
Asset-Backed Securities — 14.5%*:
CDO/CLO — 14.5%*:
AIMCO CLO 2015-AA E, 3M USD LIBOR + 7.820%^		9.18	#%		1/15/2028		500,000		510,024		500,110
AIMCO CLO Series 2015-AA ER, 3M USD LIBOR + 5.200%^¤		6.92	#		1/15/2028		500,000		500,000		500,000
ALME Loan Funding III Designated Activity Co. 3A ERV, 3M EURIBOR + 5.400%+^		5.40	#		4/15/2030		500,000		522,121		603,554
ALME Loan Funding IV BV 4A ER, 3M EURIBOR + 4.670%^+		4.67	#		1/15/2032		1,000,000		1,141,884		1,160,013
Anchorage Capital CLO Ltd. 2015-6A ER, 3M USD LIBOR + 6.350%^		7.71	#		7/15/2030		500,000		514,295		515,148
Apidos CLO 2017-27A D, 3M USD LIBOR + 6.400%^		7.59	#		7/17/2030		700,000		700,000		713,341
Apidos CLO XV 2013-15A E, 3M USD LIBOR + 5.500%^		6.86	#		10/20/2025		500,000		469,243		492,600
Atlas Senior Loan Fund VI Ltd. 2014-6A E, 3M USD LIBOR + 5.200%^		6.56	#		10/15/2026		800,000		742,046		804,119

See accompanying Notes to the Financial Statements.

91

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
CDO/CLO (Continued)
Atrium IX 9A ER, 3M USD LIBOR + 6.450%^		7.92	#%		5/28/2030		500,000		$500,000		$514,934
Avoca CLO XIV Designated Activity Co. 14X FR, 3M EURIBOR + 6.350%+		6.35	#		1/12/2031		500,000		558,021		573,225
BlueMountain CLO Ltd. 2014-1A^		Zero Coupon			4/30/2026		250,000		241,281		126,816
Cairn CLO B.V. 2013-3A E, 6M EURIBOR + 4.900%+^		4.90	#		10/20/2028		1,000,000		1,033,018		1,198,487
Carbone CLO Ltd. 2017-1A D, 3M USD LIBOR + 5.900%^		7.57	#		1/20/2031		500,000		500,000		501,389
Carlyle Global Market Strategies CLO Ltd. 2013-4A F, 3M USD LIBOR + 5.200%^		6.56	#		10/15/2025		500,000		463,335		499,109
Carlyle Global Market Strategies CLO Ltd. 2014-1A E, 3M USD LIBOR + 4.450%^		5.80	#		4/17/2025		1,000,000		906,679		1,003,568
Carlyle Global Market Strategies CLO Ltd. 2014-5A D, 3M USD LIBOR + 4.770%^		6.13	#		10/16/2025		500,000		460,926		501,865
Carlyle Global Market Strategies CLO Ltd. 2015-1A E1, 3M USD LIBOR + 5.300%^		6.66	#		4/20/2027		500,000		448,387		503,949
CBAM Ltd. 2017-3A E, 3M USD LIBOR + 6.500%^		7.85	#		10/17/2029		750,000		750,000		769,043
CIFC Funding Ltd. 2017-1A E, 3M USD LIBOR + 6.350%^		7.71	#		4/23/2029		750,000		746,711		763,538
CIFC Funding Ltd. 2017-5A D, 3M USD LIBOR + 6.100%^		7.46	#		11/16/2030		500,000		500,000		504,985
Dryden 41 Senior Loan Fund 2015-41A E, 3M USD LIBOR + 5.650%^		7.01	#		1/15/2028		500,000		469,077		502,793
Dryden 42 Senior Loan Fund 2016-42A E, 3M USD LIBOR + 7.250%^		8.61	#		7/15/2027		500,000		512,808		510,522
Dryden 45 Senior Loan Fund 2016-45A E, 3M USD LIBOR + 6.850%^		8.21	#		7/15/2027		500,000		481,221		513,111
Dryden XXXI Senior Loan Fund 2014-31A E, 3M USD LIBOR + 4.250%^		5.60	#		4/18/2026		1,000,000		909,589		997,628
Eaton Vance CLO Ltd. 2013-1A DR, 3M USD LIBOR + 7.600%^		8.96	#		1/15/2028		500,000		488,007		519,422
Galaxy XXI CLO Ltd. 2015-21A E2, 3M USD LIBOR + 6.500%^		7.86	#		1/20/2028		500,000		500,458		503,419
Galaxy XXIV CLO Ltd. 2017-24A E, 3M USD LIBOR + 5.500%^		7.13	#		1/15/2031		700,000		700,000		701,284
KKR Financial CLO Ltd. 2018 E, 3M USD LIBOR + 6.450%^		7.80	#		7/18/2030		800,000		784,184		819,722
LCM XIII LP 2013-A ER, 3M USD LIBOR + 7.300%^		8.66	#		7/19/2027		750,000		722,772		780,914
LCM XV LP 2015-A ER, 3M USD LIBOR + 6.500%^		7.86	#		7/20/2030		500,000		500,000		517,165
LCM XVII LP 2017-A E, 3M USD LIBOR + 4.750%^		6.11	#		10/15/2026		1,000,000		912,907		994,772

See accompanying Notes to the Financial Statements.

92

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
CDO/CLO (Continued)
Madison Park Funding XIII Ltd. 2014-13A^		Zero Coupon			1/19/2025		500,000		$411,458		$330,515
Oak Hill Credit Partners X Ltd. 2014-10A^		Zero Coupon			7/20/2026		500,000		460,136		262,553
Sound Point CLO XV Ltd. 2017-1A E, 3M USD LIBOR + 5.960%^		7.32	#%		1/23/2029		1,000,000		981,814		1,011,990
Steele Creek CLO Ltd. 2017-1A E, 3M USD LIBOR + 6.200%^		7.83	#		1/15/2030		500,000		500,000		501,825
TCI-Symphony CLO Ltd. 2017-1A E, 3M USD LIBOR + 6.450%^		7.72	#		7/15/2030		1,000,000		990,144		1,014,548
THL Credit Wind River CLO Ltd. 2017-4A E, 3M USD LIBOR + 5.800%^		7.31	#		11/20/2030		500,000		500,000		501,756
Voya CLO Ltd. 2015-2A E, 3M USD LIBOR + 5.300%^		6.66	#		7/23/2027		500,000		484,337		498,158
Wellfleet CLO Ltd. 2017-3A D, 3M USD LIBOR + 5.550%^¤		5.55	#		1/17/2031		1,000,000		1,000,000		1,000,000
Total CDO/CLO							25,000,000		24,516,883		25,231,890
Total Asset-Backed Securities							25,000,000		24,516,883		25,231,890
Bank Loans — 33.4%*§:
Beverage, Food and Tobacco — 1.1%*:
Deoleo S.A., EURIBOR + 3.500%+		4.50			6/11/2021		500,000		557,932		401,950
JBS USA LLC, 3M LIBOR + 2.500%		4.10			10/30/2022		909,412		895,496		892,815
Refresco Group B.V.+		3.25			1/31/2025		500,000		585,333		596,925
Total Beverage, Food and Tobacco							1,909,412		2,038,761		1,891,690
Broadcasting and Entertainment — 1.4%*:
All3Media International, 6M LIBOR + 4.250%+		5.25			6/30/2021		500,000		835,272		673,529
AP NMT Acquisition B.V., EURIBOR + 6.000%+		7.00			8/13/2021		393,127		482,600		463,636
AP NMT Acquisition B.V., 3M LIBOR + 9.000%+		10.34			8/13/2022		300,000		286,060		291,150
AP NMT Acquisition B.V., 3M LIBOR + 5.750%+		7.09			8/13/2021		493,622		459,429		489,674
Intelsat Jackson Holdings S.A., 3M LIBOR + 3.750%		5.21			11/9/2023		250,000		249,193		244,553
Intelsat Jackson Holdings S.A., 3M LIBOR + 2.750%		4.21			6/30/2019		182,493		182,300		181,894
Total Broadcasting and Entertainment							2,119,242		2,494,854		2,344,436
Buildings and Real Estate — 0.2%*:
PowerTeam Services LLC, 3M LIBOR + 7.250%		8.94			11/6/2020		300,000		299,370		300,000
VICI Properties, Inc., 3M LIBOR + 2.250%		3.78			12/13/2024		112,707		112,426		112,707
Total Buildings and Real Estate							412,707		411,796		412,707

See accompanying Notes to the Financial Statements.

93

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Chemicals, Plastics and Rubber — 1.4%*:
Colouroz Investment 1 GmbH+		3.75	%		9/7/2021		857,707		$999,497		$902,620
Diversey+		Zero Coupon			9/6/2024		500,000		590,875		598,803
Flint Group GmbH+		3.75			9/7/2021		287,690		339,324		302,754
H.B. Fuller Co., 1M LIBOR + 2.250%		3.75			10/20/2024		222,572		222,031		223,160
Methanol Holdings (Trinidad) Ltd., 1M LIBOR + 3.500%		5.07			6/30/2022		343,678		341,464		343,678
Total Chemicals, Plastics and Rubber							2,211,647		2,493,191		2,371,015
Containers, Packaging and Glass — 1.6%*:
BWAY Holding Co., 1M LIBOR + 3.250%		4.60			4/3/2024		1,342,815		1,342,167		1,347,609
Horizon Holdings III S.A.S.+		2.75			10/28/2022		–		241		–
ProAmpac PG Borrower LLC, 3M LIBOR + 8.500%		9.94			11/18/2024		500,000		493,539		507,500
W/S Packaging Group, Inc., 1M LIBOR + 5.000%		6.57			8/9/2019		925,360		860,305		874,465
Total Containers, Packaging and Glass							2,768,175		2,696,252		2,729,574
Diversified/Conglomerate Manufacturing — 2.0%*:
LTI Holdings, Inc., 1M LIBOR + 4.750%		6.32			5/16/2024		760,719		756,027		763,572
Project Alpha Intermediate Holding, Inc., 3M LIBOR + 3.500%		5.04			4/26/2024		1,185,828		1,182,680		1,158,649
Triple Point Technology, Inc., 3M LIBOR + 4.250%		5.94			7/10/2020		988,060		951,235		897,899
Triple Point Technology, Inc., 3M LIBOR + 8.250%††		9.94			7/10/2021		50,846		48,797		41,058
Xella International GmbH+		4.00			1/31/2024		500,000		588,325		599,673
Total Diversified/Conglomerate Manufacturing							3,485,453		3,527,064		3,460,851
Diversified/Conglomerate Service — 3.7%*:
Almonde, Inc., 3M LIBOR + 3.500%+		4.98			6/13/2024		1,423,074		1,426,627		1,426,532
Aramark Services, Inc., 1M LIBOR + 2.000%		3.57			3/7/2025		133,378		133,378		134,003
EAB (Avatar Purchaser)		5.24			9/6/2024		245,761		244,552		246,990
I-Logic Technologies Bidco Ltd.		5.69			12/5/2024		139,113		138,418		138,418
MH Sub I, LLC, 3M LIBOR + 7.500%		9.09			9/15/2025		650,000		646,088		650,813
Project Leopard Holdings, Inc., 3M LIBOR + 5.500%		7.19			7/7/2023		528,088		529,922		531,061
Quest Software US Holdings Inc., 3M LIBOR + 5.500%		6.92			10/31/2022		1,168,762		1,171,145		1,186,083
Verisure Holding AB, EURIBOR + 3.000%+		3.00			10/21/2022		500,000		589,695		595,539
VF Holding Corp., 1M LIBOR + 3.250%		4.82			6/30/2023		1,481,993		1,488,078		1,492,308
Total Diversified/Conglomerate Service							6,270,169		6,367,903		6,401,747

See accompanying Notes to the Financial Statements.

94

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Ecological — 0.1%*:
Emerald 3 Ltd., 3M LIBOR + 7.000%		8.69	%		5/31/2022		196,488		$195,380		$185,927
Electronics — 0.4%*:
RP Crown Parent LLC, 1M LIBOR + 3.500%		4.57			10/12/2023		735,865		732,821		738,624
Finance — 2.9%*:
Focus Financial Partners LLC, 3M LIBOR + 3.250%		4.94			7/3/2024		1,496,250		1,514,698		1,509,342
Moneygram International, Inc., 3M LIBOR + 3.250%		4.94			3/27/2020		609,483		593,233		608,148
Tempo Acquisition LLC, 1M LIBOR + 3.000%		4.57			5/1/2024		1,522,239		1,526,811		1,515,891
Veritas Bermuda Ltd., 3M LIBOR + 4.500%		6.19			1/27/2023		562,901		560,971		563,841
VFH Parent LLC, 3M LIBOR + 3.750%		5.13			12/30/2021		782,609		790,607		788,479
Total Finance							4,973,482		4,986,320		4,985,701
Healthcare, Education and Childcare — 4.0%*:
Arbor Pharmaceuticals, Inc., 3M LIBOR + 5.000%		6.69			7/5/2023		120,307		114,592		121,209
Cerba Healthcare S.A.S.+		3.00			3/22/2024		1,000,000		1,177,027		1,196,022
Change Healthcare Holdings, Inc., 1M LIBOR + 2.750%		4.32			3/1/2024		746,241		750,689		747,270
Endo Luxembourg Finance Co. I S.a r.l., 1M LIBOR + 4.250%		5.88			4/29/2024		176,934		176,133		177,819
Horizon Pharma, Inc., 1M LIBOR + 3.250%		4.75			3/29/2024		1,000,000		1,006,156		1,003,440
Immucor, Inc., 1M LIBOR + 5.000%		6.57			6/15/2021		153,975		154,146		156,285
MModal, Inc.		9.13			1/31/2020		735,521		719,458		719,891
Ortho-Clinical Diagnostics S.A., 3M LIBOR + 3.750%		5.44			6/30/2021		1,238,057		1,222,657		1,239,952
Parexel International Corp., 1M LIBOR + 3.000%		4.57			9/29/2024		997,500		1,003,636		1,001,450
Rodenstock GmbH, EURIBOR + 4.500%+		4.13			5/30/2019		500,000		545,297		582,677
Total Healthcare, Education and Childcare							6,668,535		6,869,791		6,946,015
Home and Office Furnishings, Housewares, and Durable Consumer Products — 2.3%*:
Hayward Industries, Inc.		5.07			8/2/2024		997,500		1,004,752		998,747
Keter Group B.V., EURIBOR + 4.250%+		5.25			10/31/2023		500,000		520,454		601,599
Serta Simmons Bedding LLC, 1M LIBOR + 8.000%		9.41			11/8/2024		474,667		468,526		403,467
Serta Simmons Bedding LLC, 3M LIBOR + 3.500%		4.85			11/8/2023		1,231,873		1,230,893		1,124,428
Visual Comfort Generation Brands Holdings, Inc., 1M LIBOR + 8.000%		9.57			2/28/2025		933,333		928,921		939,166
Total Home and Office Furnishings, Housewares, and Durable Consumer Products							4,137,373		4,153,546		4,067,407

See accompanying Notes to the Financial Statements.

95

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Hotels, Motels, Inns and Gaming — 1.0%*:
Caesars Resort Collection LLC, 3M LIBOR + 2.750%		4.34	%		9/27/2024		387,650		$386,683		$389,174
HNVR Holdco Ltd.+		3.25			9/12/2023		500,000		555,625		598,425
Tackle S.a.r.l., EURIBOR + 3.500%+		3.50			8/8/2022		600,000		704,969		718,448
Total Hotels, Motels, Inns and Gaming							1,487,650		1,647,277		1,706,047
Insurance — 2.5%*:
AssuredPartners, Inc., 1M LIBOR + 3.500%		5.07			10/22/2024		997,500		1,002,240		1,003,116
Asurion LLC, 1M LIBOR + 3.000%		4.57			11/3/2023		1,987,488		2,001,399		1,996,193
Hub International Ltd., 3M LIBOR + 3.000%		4.41			10/2/2020		991,858		996,934		995,935
York Risk Services Holding Corp., 1M LIBOR + 3.750%		5.32			10/1/2021		440,412		431,819		430,392
Total Insurance							4,417,258		4,432,392		4,425,636
Leisure, Amusement, Entertainment — 0.6%*:
Delta 2 (LUX) S.a.r.l., 1M LIBOR + 3.000%+		4.57			2/1/2024		579,864		579,392		582,641
Dorna Sports, S.L.+		5.09			4/12/2024		500,000		500,000		494,690
Total Leisure, Amusement, Entertainment							1,079,864		1,079,392		1,077,331
Machinery Non-Agriculture, Non-Construction, Non-Electronic — 0.1%*:
Alison Bidco S.a.r.l., 1M LIBOR + 4.500%+		5.88			8/29/2021		143,798		143,043		137,327
Total Machinery Non-Agriculture, Non-Construction, Non-Electronic							143,798		143,043		137,327
Mining, Steel, Iron and Non-Precious Metals — 1.7%*:
Big River Steel LLC, 3M LIBOR + 5.000%		6.69			8/23/2023		119,105		120,801		119,998
Boomerang Tube LLC, 1M LIBOR + 18.000%		19.57			9/1/2018		27,865		27,865		27,865
Boomerang Tube LLC¤††		15.00			2/1/2019		75,898		75,987		75,898
Boomerang Tube LLC¤††		20.00			2/1/2019		42,133		40,647		37,920
Boomerang Tube LLC, 1M LIBOR + 17.500%¤††		19.07			2/1/2021		95,536		95,536		10,509
Boomerang Tube LLC, 1M LIBOR + 15.000%¤††		16.57			2/1/2019		111,754		111,754		111,754
Fairmount Santrol, Inc., 3M LIBOR + 6.000%		7.69			11/1/2022		1,410,383		1,389,866		1,424,839
H.C. Starck GmbH, 6M LIBOR + 7.000%+		8.84			5/30/2020		700,000		711,895		721,000
Murray Energy Corp., 3M LIBOR + 7.250%		8.94			4/16/2020		202,263		199,586		177,486
Zekelman Industries, Inc., 3M LIBOR + 2.750%		4.07			6/14/2021		177,501		176,265		178,211
Total Mining, Steel, Iron and Non-Precious Metals							2,962,438		2,950,202		2,885,480
Oil and Gas — 2.9%*:
Caelus Energy Alaska O3 LLC, 3M LIBOR + 7.500%		9.10			4/15/2020		682,707		640,639		604,195
Fieldwood Energy LLC PIK, 3M LIBOR + 7.000%		8.69			9/30/2020		649,368		601,327		584,432
Fieldwood Energy LLC PIK, 3M LIBOR + 7.125%		8.82			9/30/2020		1,885,340		1,165,720		928,873
Floatel International, Ltd., 3M LIBOR + 5.000%		6.69			6/27/2020		198,039		197,207		150,262

See accompanying Notes to the Financial Statements.

96

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Oil and Gas (Continued)
Gulf Finance LLC, 3M LIBOR + 5.250%		6.95	%		8/25/2023		969,922		$950,722		$868,488
Paragon Offshore Finance Co., 3M LIBOR + 6.000%		7.35			7/18/2022		30,167		27,065		25,440
Seadrill Partners Finco LLC, 3M LIBOR + 3.000%		4.69			2/21/2021		249,857		186,990		201,135
Southcross Holdings Borrower LP		9.00			4/13/2023		10,576		10,576		10,365
Summit Midstream Partners Holdings LLC, 1M LIBOR + 6.000%		7.57			5/15/2022		106,108		105,207		107,788
UTEX Industries, Inc., 1M LIBOR + 7.250%		8.82			5/22/2022		355,556		323,739		336,295
UTEX Industries, Inc., 1M LIBOR + 4.000%		5.57			5/22/2021		1,258,221		1,114,369		1,230,955
Total Oil and Gas							6,395,861		5,323,561		5,048,228
Personal, Food and Miscellaneous — 0.5%*:
Atrium Innovations, Inc., 3M LIBOR + 3.500%		4.94			2/13/2021		944,727		938,709		947,088
Printing and Publishing — 0.2%*:
Springer Science+Business Media Deutschland GmbH, 2M LIBOR + 3.500%+		4.98			8/31/2022		402,593		403,830		403,487
Retail Stores — 0.3%*:
Thom Europe S.A.S, EURIBOR + 4.500%+		4.50			8/7/2024		500,000		575,710		599,553
Telecommunications — 1.0%*:
Altice Financing S.A., 3M LIBOR + 2.750%+		4.11			7/15/2025		173,573		173,176		169,792
GTCR Valor Cos., Inc., 3M LIBOR + 4.250%		5.94			6/16/2023		1,148,115		1,159,529		1,160,078
Numericable Group SA, 3M LIBOR + 2.750%+		4.13			7/31/2025		497,500		496,360		474,366
Total Telecommunications							1,819,188		1,829,065		1,804,236
Utilities — 1.5%*:
Calpine Corp.		4.20			1/16/2024		997,442		997,442		995,477
Dynegy Inc., 1M LIBOR + 2.750%		4.25			2/7/2024		907,572		911,165		911,357
EFS Cogen Holdings I LLC, 3M LIBOR + 3.500%		4.95			6/28/2023		706,467		700,906		712,267
Total Utilities							2,611,481		2,609,513		2,619,101
Total Bank Loans							58,653,406		58,900,373		58,189,208
Corporate Bonds — 44.8%*:
Aerospace and Defense — 2.6%*:
Park Aerospace Holdings Ltd.^		4.50			3/15/2023		584,000		584,000		557,720
Swissport Financing Sarl+		9.75			12/15/2022		300,000		394,389		374,005
TransDigm, Inc.		5.50			10/15/2020		500,000		506,373		506,250
TransDigm, Inc.		6.38			6/15/2026		1,243,000		1,247,373		1,255,430
TransDigm, Inc.		6.50			5/15/2025		203,000		205,798		207,568
Triumph Group, Inc.		5.25			6/1/2022		875,000		872,022		857,500
Triumph Group, Inc.^		7.75			8/15/2025		750,000		805,417		795,937
Total Aerospace and Defense							4,455,000		4,615,372		4,554,410

See accompanying Notes to the Financial Statements.

97

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Automobile — 2.4%*:
AA Bond Co. Ltd.+		5.50	%		7/31/2043		600,000		$792,138		$813,833
Gates Global LLC/Gates Global Co.^		6.00			7/15/2022		1,000,000		818,312		1,022,500
International Automotive Components Group SA^		9.13			6/1/2018		825,000		828,303		816,750
JB Poindexter & Co., Inc.^		9.00			4/1/2022		802,000		835,931		832,075
RAC Bond Co. PLC+		5.00			11/6/2022		450,000		589,715		604,996
Wabash National Corp.^		5.50			10/1/2025		182,000		182,000		183,365
Total Automobile							3,859,000		4,046,399		4,273,519
Beverage, Food and Tobacco — 1.4%*:
Boparan Finance PLC+		5.50			7/15/2021		1,100,000		1,439,043		1,339,560
JBS USA LUX SA/JBS USA Finance, Inc.^		5.88			7/15/2024		700,000		716,492		676,375
Pilgrim’s Pride Corp.^		5.75			3/15/2025		186,000		189,613		192,278
US Foods, Inc.^		5.88			6/15/2024		154,000		154,000		161,700
Total Beverage, Food and Tobacco							2,140,000		2,499,148		2,369,913
Broadcasting and Entertainment — 2.4%*:
CCO Holdings LLC/CCO Holdings Capital Corp.^		5.00			2/1/2028		1,750,000		1,742,616		1,701,875
Clear Channel Worldwide Holdings, Inc.		7.63			3/15/2020		1,000,000		1,004,345		980,000
DISH DBS Corp.		7.75			7/1/2026		750,000		755,014		788,437
Sirius XM Radio, Inc.^		5.00			8/1/2027		436,000		436,000		437,090
VTR Finance BV+^		6.88			1/15/2024		250,000		244,448		263,750
Total Broadcasting and Entertainment							4,186,000		4,182,423		4,171,152
Buildings and Real Estate — 1.0%*:
GEO Group, Inc. (The)		5.88			1/15/2022		500,000		479,342		515,000
Standard Industries, Inc.^		4.75			1/15/2028		885,000		885,000		887,044
William Lyon Homes, Inc.		7.00			8/15/2022		295,000		299,228		303,850
Total Buildings and Real Estate							1,680,000		1,663,570		1,705,894
Cargo Transport — 1.5%*:
Deck Chassis Acquisition, Inc.^		10.00			6/15/2023		580,000		580,000		645,250
Kenan Advantage Group, Inc.^		7.88			7/31/2023		1,367,000		1,367,000		1,414,845
WFS Global Holding SAS+		9.50			7/15/2022		400,000		448,591		511,544
Total Cargo Transport							2,347,000		2,395,591		2,571,639
Chemicals, Plastics and Rubber — 1.9%*:
A Schulman, Inc.		6.88			6/1/2023		1,000,000		1,030,898		1,040,000
Consolidated Energy Finance SA^		6.75			10/15/2019		670,000		673,500		681,725
Consolidated Energy Finance SA^		6.88			6/15/2025		440,000		437,917		466,400
Monitchem HoldCo 2 SA+		6.88			6/15/2022		550,000		605,437		604,544
Pinnacle Operating Corp.^		9.00			5/15/2023		453,953		552,833		422,176

See accompanying Notes to the Financial Statements.

98

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Chemicals, Plastics and Rubber (Continued)
Platform Specialty Products Corp.^		5.88	%		12/1/2025		180,000		$180,000		$178,650
Total Chemicals, Plastics and Rubber							3,293,953		3,480,585		3,393,495
Containers, Packaging and Glass — 1.5%*:
Coveris Holdings SA^		7.88			11/1/2019		1,400,000		1,399,669		1,389,500
Signode Industrial Group Lux SA/Signode Industrial Group US, Inc.^		6.38			5/1/2022		1,200,000		1,192,861		1,254,000
Total Containers, Packaging and Glass							2,600,000		2,592,530		2,643,500
Diversified Natural Resources, Precious Metals and Minerals — 0.3%*:
Parker Drilling Co.		6.75			7/15/2022		750,000		677,837		615,000
Diversified/Conglomerate Manufacturing — 1.3%*:
Appvion, Inc.^~		9.00			6/1/2020		500,000		507,003		75,000
EnPro Industries, Inc.		5.88			9/15/2022		400,000		402,990		416,500
Griffon Corp.^		5.25			3/1/2022		1,300,000		1,297,305		1,313,000
StoneMor Partners LP/Cornerstone Family Services of West Virginia Subsidiary		7.88			6/1/2021		500,000		511,263		490,000
Total Diversified/Conglomerate Manufacturing							2,700,000		2,718,561		2,294,500
Diversified/Conglomerate Service — 4.8%*:
APTIM Corp.^		7.75			6/15/2025		646,000		646,000		616,930
Carlson Travel, Inc.^		6.75			12/15/2023		938,000		964,308		848,890
Carlson Travel, Inc.^		9.50			12/15/2024		277,000		277,000		222,985
Iron Mountain UK PLC		3.88			11/15/2025		450,000		597,667		594,384
Nuance Communications, Inc.		5.63			12/15/2026		1,000,000		991,360		1,041,250
Prime Security Services Borrower LLC/Prime Finance, Inc.^		9.25			5/15/2023		1,357,000		1,431,308		1,506,270
ServiceMaster Co. LLC (The)^		5.13			11/15/2024		627,000		627,000		634,837
Verisure Midholding AB+		5.75			12/1/2023		1,700,000		2,004,554		2,053,696
Zachry Holdings, Inc.^		7.50			2/1/2020		871,000		869,170		884,065
Total Diversified/Conglomerate Service							7,866,000		8,408,367		8,403,307
Electronics — 1.2%*:
Solera LLC/Solera Finance, Inc.^		10.50			3/1/2024		376,000		424,516		422,993
TIBCO Software, Inc.^		11.38			12/1/2021		1,582,000		1,733,804		1,723,399
Total Electronics							1,958,000		2,158,320		2,146,392
Finance — 4.3%*:
Cabot Financial Luxembourg SA+		7.50			10/1/2023		350,000		465,140		494,290
Galaxy Finco Ltd.+		7.88			11/15/2021		700,000		1,008,646		946,287
Garfunkelux Holdco 2 SA+		11.00			11/1/2023		400,000		574,735		580,063
Garfunkelux Holdco 3 S.A.+		8.50			11/1/2022		700,000		978,644		987,635

See accompanying Notes to the Financial Statements.

99

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Finance (Continued)
Icahn Enterprises LP/Icahn Enterprises Finance Corp.^		6.25	%		2/1/2022		300,000		$308,861		$306,750
Icahn Enterprises LP/Icahn Enterprises Finance Corp.^		6.38			12/15/2025		381,000		381,000		381,038
Icahn Enterprises LP/Icahn Enterprises Finance Corp.		6.75			2/1/2024		1,250,000		1,250,000		1,284,375
Jerrold Finco PLC+		6.13			1/15/2024		450,000		560,255		619,112
LPL Holdings, Inc.^		5.75			9/15/2025		550,000		556,420		559,625
Veritas US, Inc./Veritas Bermuda Ltd.^		7.50			2/1/2023		817,000		869,848		855,807
Veritas US, Inc./Veritas Bermuda Ltd.^		10.50			2/1/2024		450,000		485,700		468,000
Total Finance							6,348,000		7,439,249		7,482,982
Grocery — 0.4%*:
C&S Group Enterprises LLC^		5.38			7/15/2022		270,000		262,086		254,475
Post Holdings, Inc.^		5.50			3/1/2025		201,000		201,000		208,035
Post Holdings, Inc.^		5.75			3/1/2027		249,000		249,000		253,358
Total Grocery							720,000		712,086		715,868
Healthcare, Education and Childcare — 3.3%*:
Avantor, Inc.^		6.00			10/1/2024		424,000		424,000		422,410
CHS/Community Health Systems, Inc.		6.25			3/31/2023		164,000		164,000		147,600
Cognita Financing PLC+		7.75			8/15/2021		500,000		725,569		698,365
CTC BondCo GmbH+		5.25			12/15/2025		150,000		178,537		180,044
Halyard Health, Inc.		6.25			10/15/2022		288,000		289,445		298,080
IDH Finance PLC+		6.25			8/15/2022		400,000		501,925		493,855
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA^		6.63			5/15/2022		735,000		693,341		738,675
Tenet Healthcare Corp.^		4.63			7/15/2024		560,000		560,000		546,000
Unilabs Subholding AB+		5.75			5/15/2025		100,000		119,628		120,800
Valeant Pharmaceuticals International, Inc.		4.50			5/15/2023		100,000		92,045		107,325
Valeant Pharmaceuticals International, Inc.^		5.50			11/1/2025		184,000		184,000		187,220
Valeant Pharmaceuticals International, Inc.^		6.13			4/15/2025		1,325,000		1,122,400		1,212,375
Valeant Pharmaceuticals International, Inc.^		9.00			12/15/2025		177,000		174,550		184,469
West Street Merger Sub, Inc.^		6.38			9/1/2025		507,000		507,000		508,268
Total Healthcare, Education and Childcare							5,614,000		5,736,440		5,845,486
Hotels, Motels, Inns and Gaming — 0.5%*:
TVL Finance PLC+		8.50			5/15/2023		540,000		766,518		792,512
Insurance — 0.6%*:
AssuredPartners, Inc.^		7.00			8/15/2025		750,000		751,805		746,250
USIS Merger Sub, Inc.^		6.88			5/1/2025		229,000		229,000		231,290
Total Insurance							979,000		980,805		977,540
Leisure, Amusement, Entertainment — 1.3%*:
AMC Entertainment Holdings, Inc.		6.38			11/15/2024		750,000		969,990		1,015,550
Interval Acquisition Corp.		5.63			4/15/2023		459,000		459,000		475,065

See accompanying Notes to the Financial Statements.

100

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Leisure, Amusement, Entertainment (Continued)
Perform Group Financing PLC+		8.50	%		11/15/2020		400,000		$550,456		$556,262
WMG Acquisition Corp.		4.13			11/1/2024		150,000		165,758		189,541
Total Leisure, Amusement, Entertainment							1,759,000		2,145,204		2,236,418
Machinery Non-Agriculture, Non-Construction, Non-Electronic — 0.7%*:
Apex Tool Group LLC^		7.00			2/1/2021		750,000		683,315		721,875
Xerium Technologies, Inc.		9.50			8/15/2021		500,000		496,435		506,250
Total Machinery Non-Agriculture, Non-Construction, Non-Electronic							1,250,000		1,179,750		1,228,125
Mining, Steel, Iron and Non-Precious Metals — 1.1%*:
Allegheny Technologies, Inc.		5.95			1/15/2021		1,000,000		1,002,114		1,020,000
BlueScope Steel Finance Ltd./BlueScope Steel Finance USA LLC+^		6.50			5/15/2021		166,000		166,000		173,055
Constellium NV		4.25			2/15/2026		100,000		116,620		119,997
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp.^		7.50			6/15/2025		654,000		644,820		683,430
Total Mining, Steel, Iron and Non-Precious Metals							1,920,000		1,929,554		1,996,482
Oil and Gas — 6.4%*:
Chesapeake Energy Corp.^		8.00			12/15/2022		756,000		782,140		815,535
Citgo Holding, Inc.^		10.75			2/15/2020		350,000		343,943		375,375
Energy Transfer Equity LP		4.25			3/15/2023		903,000		903,000		896,227
EP Energy LLC/Everest Acquisition Finance, Inc.^		8.00			2/15/2025		1,343,000		1,296,288		980,390
Ferrellgas LP/Ferrellgas Finance Corp.		6.75			1/15/2022		1,000,000		1,009,332		925,000
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp.		8.63			6/15/2020		284,000		275,400		242,110
Genesis Energy LP/Genesis Energy Finance Corp.		6.00			5/15/2023		1,000,000		983,790		1,012,500
Genesis Energy LP/Genesis Energy Finance Corp.		6.75			8/1/2022		500,000		484,546		518,750
Jonah Energy LLC/Jonah Energy Finance Corp.^		7.25			10/15/2025		863,000		867,776		869,472
Jupiter Resources, Inc.+^		8.50			10/1/2022		1,450,000		1,241,077		899,000
KCA Deutag UK Finance PLC+^		9.88			4/1/2022		200,000		197,475		212,000
Kosmos Energy Ltd.		7.88			8/1/2021		1,177,000		1,142,557		1,203,483
Sunoco LP/Sunoco Finance Corp.		6.25			4/15/2021		1,000,000		1,003,853		1,039,500
Welltec A/S^+		9.50			12/1/2022		1,137,000		1,126,091		1,142,685
Total Oil and Gas							11,963,000		11,657,268		11,132,027
Personal Transportation — 0.8%*:
Hertz Corp. (The)^		7.63			6/1/2022		1,285,000		1,281,439		1,346,037

See accompanying Notes to the Financial Statements.

101

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Personal, Food and Miscellaneous — 0.3%*:
Ocado Group PLC+		4.00	%		6/15/2024		350,000		$449,071		$470,156
Retail Stores — 1.6%*:
House of Fraser Funding PLC, 3M GBP LIBOR + 5.750%+		6.27	#		9/15/2020		150,000		232,702		177,068
HSS Financing PLC+		6.75			8/1/2019		272,000		393,304		337,862
Maxeda DIY Holding B.V.+		6.13			7/15/2022		200,000		228,140		241,357
Penske Automotive Group, Inc.		5.50			5/15/2026		1,345,000		1,341,203		1,364,771
Travelex Financing PLC+		8.00			5/15/2022		500,000		569,681		607,724
Total Retail Stores							2,467,000		2,765,030		2,728,782
Telecommunications — 0.5%*:
Altice Finco SA+		4.75			1/15/2028		550,000		642,358		628,571
Zayo Group LLC/Zayo Capital, Inc.^		5.75			1/15/2027		186,000		186,000		189,720
Total Telecommunications							736,000		828,358		818,291
Utilities — 0.7%*:
NRG Energy, Inc.		7.25			5/15/2026		789,000		799,375		859,016
Viridian Group Finance Co. PLC+		4.75			9/15/2024		300,000		396,000		400,695
Total Utilities							1,089,000		1,195,375		1,259,711
Total Corporate Bonds							74,854,953		78,504,850		78,173,138
Total Fixed Income							158,508,359		161,922,106		161,594,236

COUNTERPARTY

STRIKE PRICE

EXPIRATION DATE

CONTRACTS

NOTIONAL

COST

UNREALIZED VALUE

FAIR VALUE

Purchased Option — 0.2%*:

Put Option Purchased — 0.2%*:

S&P 500 Index

Morgan Stanley & Co.

$2,450.00

6/15/2018

80

21,388,880

566,560

(290,560

)

276,000

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Short-Term Investments — 9.2%*:
Bank Deposit — 9.2%*:
State Street Bank & Trust Co. Euro Time Deposit		0.12	%		1/2/2018		16,079,779		16,079,779		16,079,779
Total Investments							193,781,807		179,160,616		178,819,802
Other assets and liabilities – (2.6%)*											(4,455,812	)
Net Assets – 100.0%											$174,363,990

See accompanying Notes to the Financial Statements.

102

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

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	76.4%
United Kingdom	8.3%
Netherlands	4.2%
Germany	3.2%
France	1.7%
Sweden	1.6%
Other (Individually less than 1%)	4.6%
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 December 31, 2017. 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 December 31, 2017.

A summary of outstanding derivatives at December 31, 2017 is as follows:

Forward Foreign Currency Exchange Contracts to Buy

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION
1/12/18	Goldman Sachs & Co.		EUR	22,590		27,119		26,750	$	369
1/12/18	Bank of America N.A.		GBP	295,306		398,819		396,594		2,225
1/12/18	Goldman Sachs & Co.		GBP	130,019		175,594		173,891		1,703
Net unrealized appreciation on forward foreign currency exchange contracts to buy									$	4,297

Forward Foreign Currency Exchange Contracts to Sell

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED DEPRECIATION
1/12/18	Goldman Sachs & Co.		EUR	13,224,250		15,875,528		15,642,168	$	(233,360	)
1/12/18	JPMorgan Chase Bank N.A.		GBP	9,947,734		13,434,705		13,379,676		(55,029	)
Net unrealized depreciation on forward foreign currency exchange contracts to sell									$	(288,389	)

See accompanying Notes to the Financial Statements.

103

Barings Global Credit Income Opportunities Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

Currency Legend

EUR	–	Euro
GBP	–	British Pound Sterling

See accompanying Notes to the Financial Statements.

104

Barings Active Short Duration Bond Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 77.6%*:
Asset-Backed Securities — 31.2%*:
CDO/CLO — 4.1%*:
AIMCO CLO 2014-AA AR, 3M USD LIBOR + 1.100%^		2.46	#%		7/20/2026		1,200,000		$1,200,000		$1,202,002
ALM VII Ltd. 2012-7A A1R, 3M USD LIBOR + 1.480%^		2.84	#		10/15/2028		390,000		390,000		393,255
ALM XIV Ltd. 2014-14A A1R, 3M USD LIBOR + 1.150%^		2.53	#		7/28/2026		570,000		570,000		571,164
Apidos CLO XXV 2016-25A A1, 3M USD LIBOR + 1.460%^		2.82	#		10/20/2028		470,000		470,000		471,447
Avery Point III CLO Ltd. 2013-3A AR, 3M USD LIBOR + 1.120%^		2.47	#		1/18/2025		800,000		800,000		802,070
BlueMountain CLO Ltd. 2015-2A A1, 3M USD LIBOR + 1.430%^		2.78	#		7/18/2027		500,000		493,400		502,355
Carlyle Global Market Strategies CLO Ltd. 2014-4A A1R, 3M USD LIBOR + 1.200%^		2.56	#		10/15/2026		250,000		250,000		250,485
Denali Capital CLO Ltd. 2013 1A A1LR, 3M USD LIBOR + 1.050%+^		2.42	#		10/26/2027		2,420,000		2,420,000		2,428,252
Galaxy XX CLO Ltd. 2015-20A A, 3M USD LIBOR + 1.450%^		2.81	#		7/20/2027		250,000		247,272		250,260
LCM XIV LP 2014-A, 3M USD LIBOR + 1.150%^		2.51	#		7/15/2025		618,068		617,714		618,923
LCM XXIII Ltd. 23A A1, 3M USD LIBOR + 1.400%^		2.76	#		10/20/2029		610,000		610,000		617,741
Madison Park Funding XIV Ltd. 2014-14A A1R, 3M USD LIBOR + 1.120%^		2.48	#		7/20/2026		290,000		290,000		291,296
Madison Park Funding XXII Ltd. 2016-22A A, 3M USD LIBOR + 1.480%^		2.85	#		10/25/2029		350,000		350,000		356,150
Magnetite XI Ltd. 2014-11A A1R, 3M USD LIBOR + 1.120%^		2.47	#		1/18/2027		890,000		890,000		892,989
Neuberger Berman CLO XX Ltd. 2015-20A BR, 3M USD LIBOR + 1.250%^		2.69	#		1/15/2028		2,000,000		2,000,000		2,000,290
OCP CLO Ltd. 2015-8A A2AR, 3M USD LIBOR + 1.450%^		2.80	#		4/17/2027		900,000		900,000		902,307
OHA Loan Funding Ltd. 2015-1A AR, 3M USD LIBOR + 1.410%^		2.83	#		8/15/2029		840,000		840,000		854,238
Race Point VIII CLO Ltd. 2013-8A AR, 3M USD LIBOR + 1.340%^		2.78	#		2/20/2030		1,320,000		1,320,000		1,329,994
Seneca Park CLO Ltd. 2014-1A AR, 3M USD LIBOR + 1.120%^		2.47	#		7/17/2026		360,000		360,000		360,378
Symphony CLO XV Ltd. 2014-15A AR, 3M USD LIBOR + 1.180%^		2.53	#		10/17/2026		1,100,000		1,100,000		1,103,251
TCI-Symphony CLO Ltd. 2016-1A A, 3M USD LIBOR + 1.480%^		2.84	#		10/13/2029		320,000		320,000		325,519

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
CDO/CLO (Continued)
Treman Park CLO Ltd. 2015-1A AR, 3M USD LIBOR + 1.370%^		2.73	# %		4/20/2027		970,000	$	970,000	$	971,611
Total CDO/CLO							17,418,068		17,408,386		17,495,977
Other Asset-Backed Securities — 27.1%*:
321 Henderson Receivables II LLC 2006-3A A1, 1M USD LIBOR + 0.200%^		1.45	#		9/15/2041		137,665		133,736		130,176
Access Group, Inc. 2015-1 A, 1M USD LIBOR + 0.700%^		2.25	#		7/25/2056		138,819		135,807		138,986
Access Group, Inc. 2015-1 B, 1M USD LIBOR + 1.500%^		3.05	#		7/25/2058		100,000		86,487		86,343
AccessLex Institute 2002-A A2, 28 day ARS¤		1.96	#		9/25/2037		650,000		599,611		646,100
AccessLex Institute 2004-A A3, 28 day ARS		1.70	#		7/1/2039		1,400,000		1,374,055		1,381,132
AccessLex Institute 2005-1 A3, 3M USD LIBOR + 0.150%		1.81	#		6/22/2022		41,768		41,327		41,750
Accredited Mortgage Loan Trust 2004-04 A2D, 1M USD LIBOR + 0.700%		2.25	#		1/25/2035		535,481		525,128		537,567
American Credit Acceptance Receivables Trust 2016-2 A^		2.22			7/13/2020		31,254		31,254		31,262
American Credit Acceptance Receivables Trust 2017-1 B^		2.39			2/16/2021		580,000		579,955		579,974
American Credit Acceptance Receivables Trust 2017-4 C^		2.94			1/10/2024		1,790,000		1,789,936		1,789,061
AmeriCredit Automobile Receivables Trust 2014-1 D		2.54			6/8/2020		310,000		309,740		310,847
Arbys Funding LLC 2015-1A A2^		4.97			10/30/2045		78,400		78,400		80,072
Argent Securities, Inc. Asset-Backed Pass-Through Certificates 2004-W10 M1, 1M USD LIBOR + 0.900%		2.23	#		10/25/2034		292,114		265,748		282,519
ARI Fleet Lease Trust 2016-A A3^		2.11			7/15/2024		200,000		199,968		199,977
Asset Backed Securities Corp. Home Equity Loan Trust 2005-HE1 M1, 1M USD LIBOR + 0.750%		2.30	#		3/25/2035		348,844		346,814		356,072
Avant Loans Funding Trust 2017-B A^		2.29			6/15/2020		1,456,861		1,457,048		1,456,489
Avis Budget Rental Car Funding AESOP LLC Series 2012-3A A^		2.10			3/20/2019		120,000		119,717		120,001
BlueVirgo Trust 2015-1A^		3.00			12/15/2022		150,778		150,289		151,113
BRE Grand Islander Timeshare Issuer LLC 2017-1A A^		2.94			5/25/2029		284,532		284,464		281,476
BRE Grand Islander Timeshare Issuer LLC 2017-1A B^		3.24			5/25/2029		234,321		234,289		231,231
Capital Automotive LLC 2017-1A A1^		3.87			4/15/2047		307,933		307,845		312,329
CarFinance Capital Auto Trust 2013-2A C^		4.04			8/15/2019		148,554		148,930		148,593
CarFinance Capital Auto Trust 2014-2 A^		1.44			11/16/2020		23,194		23,061		23,174
Cazenovia Creek Funding I LLC 2015-1A A^		2.00			12/10/2023		58,285		57,788		58,067

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Centex Home Equity Loan Trust 2006-A AV4, 1M USD LIBOR + 0.250%		1.80	# %		6/25/2036		160,003	$	156,322	$	160,447
Citigroup Mortgage Loan Trust Asset Backed Pass-Through Certificates 2005-OPT3 M2, 1M USD LIBOR + 0.675%		2.23	#		5/25/2035		164,313		163,919		164,627
CKE Restaurant Holdings, Inc. 2013-1A A2^		4.47			3/20/2043		429,827		433,820		430,737
CLI Funding V LLC 2013-1A^		2.83			3/18/2028		50,900		50,675		50,176
CLI Funding V LLC 2013-2A^		3.22			6/18/2028		1,031,105		1,019,723		1,024,690
CLI Funding V LLC 2014-1A A^		3.29			6/18/2029		869,646		865,197		864,937
CLI Funding VI LLC 2017-1A A^		3.62			5/18/2042		609,026		608,959		609,443
College Loan Corp. Trust I 2005-2 B, 3M USD LIBOR + 0.490%		1.85	#		1/15/2037		193,356		170,632		177,766
Commonbond Student Loan Trust 2016-B A1^		2.73			10/25/2040		1,851,291		1,858,836		1,845,289
Commonbond Student Loan Trust 2017-A-GS^		5.28			5/25/2041		710,000		709,913		721,188
CPS Auto Receivables Trust 2015-B A^		1.65			11/15/2019		35,494		35,328		35,473
CPS Auto Receivables Trust 2015-C B^		2.55			2/18/2020		94,939		94,931		95,049
CPS Auto Receivables Trust 2016-A A^		2.25			10/15/2019		17,618		17,618		17,625
CPS Auto Receivables Trust 2016-B A^		2.07			11/15/2019		50,080		50,079		50,068
CPS Auto Receivables Trust 2016-C A^		1.62			1/15/2020		50,020		50,020		49,948
CPS Auto Receivables Trust 2016-C B^		2.48			9/15/2020		180,000		179,988		179,601
CPS Auto Trust 2017-A B^		2.68			5/17/2021		1,200,000		1,200,000		1,201,451
CPS Auto Trust 2017-D A^		1.87			3/15/2021		360,033		360,028		359,250
Credit Suisse ABS Repackaging Trust 2013-A B^		2.50			1/25/2030		60,940		58,176		57,522
DB Master Finance LLC 2015-1A A2II^		3.98			2/20/2045		1,167,000		1,175,573		1,194,928
Diamond Resorts Owner Trust 2013-1 A^		1.95			1/20/2025		290,722		289,149		289,935
Diamond Resorts Owner Trust 2013-2 A^		2.27			5/20/2026		411,070		408,205		410,262
Diamond Resorts Owner Trust 2015-1 A^		2.73			7/20/2027		24,391		24,389		24,231
Diamond Resorts Owner Trust 2015-2 A^		2.99			5/22/2028		93,072		94,046		92,186
Diamond Resorts Owner Trust 2015-2 B^		3.54			5/22/2028		33,844		33,843		33,600
Diamond Resorts Owner Trust 2016-1 A^		3.08			11/20/2028		673,526		673,526		663,062
Domino’s Pizza Master Issuer LLC 2015-1A A2I^		3.48			10/25/2045		334,900		329,221		336,065
DRB Prime Student Loan Trust 2015-A A2^		3.06			7/25/2031		67,432		66,626		67,431
DRB Prime Student Loan Trust 2015-B A2^		3.17			7/25/2031		188,276		187,585		189,139
DRB Prime Student Loan Trust 2015-B A3^		2.54			4/27/2026		29,199		29,196		28,824
DRB Prime Student Loan Trust 2015-D A1, 1M USD LIBOR + 1.700%^		3.25	#		1/25/2040		223,572		220,793		227,866
DRB Prime Student Loan Trust 2015-D A2^		3.20			1/25/2040		781,727		780,927		781,070
DRB Prime Student Loan Trust 2016-A A1, 1M USD LIBOR + 2.000%^		3.55	#		4/25/2040		186,465		186,091		185,981
DRB Prime Student Loan Trust 2016-B A2^		2.89			6/25/2040		210,184		210,124		210,623
DRB Prime Student Loan Trust 2016-R A1, 1M USD LIBOR + 1.900%^¤		3.46	#		10/25/2044		1,148,047		1,148,047		1,159,528
Drive Auto Receivables Trust 2015-AA C^		3.06			5/17/2021		253,812		256,102		254,900
Drive Auto Receivables Trust 2016-BA B^		2.56			6/15/2020		1,429,379		1,431,903		1,430,726
Drive Auto Receivables Trust 2017-1 C		2.84			4/15/2022		350,000		349,955		351,479

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Drive Auto Receivables Trust 2017-2 C		2.75	%		9/15/2023		200,000	$	199,992	$	200,229
Drug Royalty Corp Inc. 2012-1 A1, 3M USD LIBOR + 5.250%^		6.13	#		7/15/2024		29,615		30,210		29,901
DT Auto Owner Trust 2016-1A B^		2.79			5/15/2020		6,315		6,315		6,316
DT Auto Owner Trust 2016-2A B^		2.92			5/15/2020		127,164		127,163		127,242
Earnest Student Loan Program LLC 2016-B A1, 1M USD LIBOR + 2.050%^		3.60	#		2/26/2035		241,961		241,961		242,785
Earnest Student Loan Program LLC 2016-C A2^		2.68			7/25/2035		365,644		363,601		358,903
Earnest Student Loan Program LLC 2016-D A2^		2.72			1/25/2041		419,113		418,986		414,668
ECMC Group Student Loan Trust 2016-1A A, 1M USD LIBOR + 1.350%^		2.90	#		7/26/2066		480,627		480,627		485,068
ECMC Group Student Loan Trust 2017-1A A, 1M USD LIBOR + 1.200%^		2.75	#		12/27/2066		1,442,320		1,442,320		1,458,942
EdLinc Student Loan Funding Trust 2017-A A, PRIME – 1.15%^¤		1.01	#		12/1/2047		1,950,000		1,936,445		1,936,440
Education Loan Asset-Backed Trust I 2013-1 A1, 1M USD LIBOR + 0.800%^		2.35	#		6/25/2026		482,213		476,833		482,521
Elara HGV Timeshare Issuer LLC 2014-A B^		3.02	#**		2/25/2027		29,164		28,940		29,007
Elara HGV Timeshare Issuer LLC 2016-A A^		2.73			4/25/2028		223,658		223,654		222,330
Elara HGV Timeshare Issuer LLC 2017-A A^		2.69			3/25/2030		511,026		510,981		507,180
Element Rail Leasing II LLC 2015-1A A1+^		2.71			2/19/2045		384,926		381,590		381,520
Element Rail Leasing II LLC 2015-1A A1+^		3.97			3/19/2046		128,891		128,891		130,895
Element Rail Leasing II LLC 2016-1A A2+^		5.05			3/19/2046		800,000		813,189		850,129
Entergy New Orleans Storm Recovery Funding I LLC 2015-1 A		2.67			6/1/2027		139,849		139,821		139,534
Enterprise Fleet Financing LLC 2016-1 A2^		1.83			9/20/2021		289,162		289,135		289,006
Enterprise Fleet Financing LLC 2017-1 A3^		2.60			7/20/2022		240,000		239,950		241,170
Exeter Automobile Receivables Trust 2015-2A C^		3.90			3/15/2021		800,000		808,974		809,853
Exeter Automobile Receivables Trust 2016-3A B^		2.84			8/16/2021		240,000		239,967		238,385
Exeter Automobile Receivables Trust 2017-1A B^		3.00			12/15/2021		430,000		429,920		428,440
First Franklin Mortgage Loan Trust 2004-FFH4 M5, 1M USD LIBOR + 1.575%		3.13	#		1/25/2035		327,079		328,593		332,014
First Franklin Mortgage Loan Trust 2005 FF3 M3, 1M USD LIBOR + 0.720%		2.27	#		4/25/2035		43,364		43,159		43,451
First Investors Auto Owner Trust 2016-1A A1^		1.92			5/15/2020		40,628		40,627		40,622
First Investors Auto Owner Trust 2016-2A B^		2.21			7/15/2022		520,000		519,978		513,839
First Investors Auto Owner Trust 2017-3A B^		2.72			4/17/2023		560,000		559,960		557,311
Flagship Credit Auto Trust 2015-2 A^		1.98			10/15/2020		25,516		25,514		25,515
Flagship Credit Auto Trust 2015-3 A^		2.38			10/15/2020		195,739		196,296		196,070
Flagship Credit Auto Trust 2016-1 A^		2.77			12/15/2020		162,589		162,342		163,231
Flagship Credit Auto Trust 2016-3 B^		2.43			6/15/2021		310,000		309,979		310,052
Flagship Credit Auto Trust 2016-4 B^		2.41			10/15/2021		1,940,000		1,941,235		1,932,750

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Flagship Credit Auto Trust 2016-4 C^		2.71	%		11/15/2022		410,000	$	409,981	$	407,815
Flagship Credit Auto Trust 2017-1 B^		2.83			3/15/2023		895,000		894,975		897,289
Flagship Credit Auto Trust 2017-4 C^		2.92			11/15/2023		1,140,000		1,138,967		1,135,802
FNA Trust 2015-1 A^		3.24			12/10/2023		114,261		114,309		113,608
FRS I LLC 2013-1A A1^		1.80			4/15/2043		22,088		21,869		21,948
Global SC Finance II SRL 2014-1A A1+^		3.19			7/17/2029		204,083		204,043		202,608
Global SC Finance IV Ltd.+^		3.85			4/15/2037		414,158		414,013		420,727
Goal Capital Funding Trust 2010-1 A, 3M USD LIBOR + 0.700%^		2.16	#		8/25/2048		193,874		186,160		192,389
Goal Structured Solution Trust 2015-1 B, 1M USD LIBOR + 1.500%^		3.05	#		9/25/2043		100,000		76,331		90,187
Goodgreen Trust 2016-1 A^		3.23			10/15/2052		571,781		571,501		570,283
GSAMP Trust 2005-SEA2 A1, 1M USD LIBOR + 0.350%^		1.90	#		1/25/2045		23,333		22,452		23,286
Hero Funding 2017-3A A1^		3.19			9/20/2048		845,266		844,980		842,960
HERO Funding Trust 2015-1A A^		3.84			9/21/2040		908,029		924,571		923,919
HERO Funding Trust 2016-4A A1^		3.57			9/20/2047		385,703		385,551		391,978
HERO Funding Trust 2017-2A A1^		3.28			9/20/2048		133,728		133,711		133,197
HERO Funding Trust 2017-2A A2^		4.07			9/20/2048		105,079		107,675		107,160
Higher Education Funding I 2004-1 B1, 28 day ARS^		2.10	#		1/1/2044		950,000		827,578		886,726
Hilton Grand Vacations Trust 2013-A A^		2.28			1/25/2026		51,210		50,532		50,849
Hilton Grand Vacations Trust 2017-AA B^		2.96	#**		12/26/2028		351,747		351,732		347,356
Laurel Road Prime Student Loan Trust 2017-B CFX^		3.61			8/25/2042		520,000		519,921		511,543
Laurel Road Prime Student Loan Trust 2017-C B^		2.95			11/25/2042		590,000		589,770		582,362
Lendmark Funding Trust 2017-1A^		2.83			12/22/2025		310,000		309,941		309,190
Lendmark Funding Trust 2017-2A A^		2.80			5/20/2026		679,964		679,937		679,937
Mariner Finance Issuance Trust 2017-AA A^		3.62			2/20/2029		480,000		479,911		482,625
Mariner Finance Issuance Trust 2017-BA B^		2.92			12/20/2029		2,100,000		2,099,787		2,095,885
Marlette Funding Trust 2016-1A A^		3.06			1/17/2023		241,675		241,885		242,102
Marlette Funding Trust 2017-1A A^		2.83			3/15/2024		1,256,528		1,259,710		1,260,218
Marlette Funding Trust 2017-2A A^		2.39			7/15/2024		394,346		394,346		394,300
Marlette Funding Trust 2017-3A A^		2.36			12/15/2024		458,496		458,472		458,310
Miramax LLC 2014-1A A2^		3.34			7/20/2026		104,496		104,811		104,581
Mosaic Solar Loans LLC 2017-1A A^		4.45			6/20/2042		117,263		117,230		119,645
Mosaic Solar Loans LLC 2017-2A D^		Zero Coupon			9/20/2042		500,000		440,389		441,614
MVW Owner Trust 2013-1A A^		2.15			4/22/2030		337,136		334,625		332,824
MVW Owner Trust 2015-1A A^		2.52			12/20/2032		42,880		42,877		42,646
MVW Owner Trust 2016-1A A^		2.25			12/20/2033		2,011,561		1,994,300		1,990,063
MVW Owner Trust 2017-1A A^		2.42			12/20/2034		115,355		115,338		114,301
Nations Equipment Finance Funding III LLC 2016-1A A^		3.61			2/20/2021		106,342		106,340		106,464

See accompanying Notes to the Financial Statements.

109

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Navient Student Loan Trust 2017-3A A3, 1M USD LIBOR + 1.050%^		2.60	# %		7/26/2066		1,000,000	$	1,000,000	$	1,026,133
Navient Student Loan Trust 2015-1 B, 1M USD LIBOR + 1.500%		3.05	#		7/25/2052		1,100,000		1,094,524		1,094,606
Navient Student Loan Trust 2015-2 A3, 1M USD LIBOR + 0.570%		2.12	#		11/26/2040		500,000		492,763		498,694
Navient Student Loan Trust 2016-5A A, 1M USD LIBOR + 1.250%^		2.80	#		6/25/2065		1,054,765		1,059,365		1,080,060
Navient Student Loan Trust 2016-6 A3, 1M USD LIBOR + 1.300%^		2.85	#		3/25/2066		1,100,000		1,100,000		1,131,063
Navient Student Loan Trust 2017-1A A3, 1M USD LIBOR + 1.150%^		2.70	#		7/26/2066		1,300,000		1,300,000		1,330,934
Navient Student Loan Trust 2017-4A A3, 1M USD LIBOR + 1.000%^		2.55	#		9/27/2066		650,000		650,000		656,201
Navient Student Loan Trust 2017-5A A, 1M USD LIBOR + 1.000%^		2.35	#		7/26/2066		631,170		630,446		633,321
Navistar Financial Dealer Note Master Owner Trust II 2016-1 A, 1M LIBOR + 1.350%^		2.90	#		9/27/2021		550,000		550,000		553,234
Navitas Equipment Receivables LLC 2015-1 A2^		2.12			11/15/2018		20,876		20,873		20,875
Nelnet Private Education Loan Trust 2016-A A1A, 1M USD LIBOR + 1.750%^		3.08	#		12/26/2040		331,832		331,832		332,484
Nelnet Private Education Loan Trust 2016-A A1B^		3.60			12/26/2040		238,929		237,379		235,838
Nelnet Student Loan Trust 2006-2 A6, 3M USD LIBOR + 0.120%		1.49	#		4/25/2031		280,000		274,085		280,464
Nelnet Student Loan Trust 2014-6A A, 1M USD LIBOR + 0.650%^		2.20	#		11/25/2052		358,343		347,256		355,248
New Residential Advance Receivables Trust Advance Receivables Backed Notes 2016-T2 AT2^		2.58			10/15/2049		1,950,000		1,950,000		1,931,377
NextGear Floorplan Master Owner Trust 2015-2A A^		2.38			10/15/2020		100,000		99,995		100,123
NextGear Floorplan Master Owner Trust 2016-1A A1, 1M LIBOR + 1.700%^		3.18	#		4/15/2021		490,000		490,000		497,569
NextGear Floorplan Master Owner Trust 2016-2A A2^		2.19			9/15/2021		762,000		759,865		759,465
Northstar Education Finance, Inc. 2005-1 A5, 3M USD LIBOR + 0.750%		2.13	#		10/30/2045		188,658		180,779		176,496
NorthStar Student Loan Trust III 2016-1 A, 1M USD LIBOR + 1.250%^		2.80	#		5/27/2036		238,869		228,621		238,567
NovaStar Mortgage Funding Trust 2004-4 M5, 1M LIBOR + 1.725%		3.28	#		3/25/2035		580,926		580,781		587,733
NP SPE II LLC 2017-1A A1^		3.37			10/21/2047		455,915		455,915		453,071

See accompanying Notes to the Financial Statements.

110

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
NRZ Advance Receivables Trust 2016-T4 AT4^		3.11	%		12/15/2050		900,000	$	900,000	$	895,992
OnDeck Asset Securitization Trust II LLC 2016-1A A^		4.21			5/17/2020		110,000		109,996		110,407
OneMain Direct Auto Receivables Trust 2017-2A A^		2.31			12/14/2021		1,130,000		1,129,868		1,129,009
OneMain Financial Issuance Trust 2014-2A A^		2.47			9/18/2024		2,778		2,786		2,779
Oportun Funding VI LLC 2017-A A^		3.23			6/8/2023		500,000		499,933		497,501
Orange Lake Timeshare Trust 2016-A A^		2.61			3/8/2029		223,749		223,726		221,482
Orange Lake Timeshare Trust 2016-A B^		2.91			3/8/2029		335,622		333,244		330,033
Oscar US Funding Trust II 2015 1A A3+^		1.86			10/15/2019		253,965		253,491		253,533
Oscar US Funding Trust II 2015 1A A4+^		2.44			6/15/2022		270,000		263,975		269,168
Oscar US Funding Trust IV 2016 1A A2B, 1M USD LIBOR + 1.700%+^		2.95	#		7/15/2020		58,586		58,586		58,888
Oscar US Funding Trust IV 2016-1A A2A+^		2.53			7/15/2020		146,465		146,748		146,535
Oscar US Funding Trust V 2016-2A A2A+^		2.31			11/15/2019		227,714		227,696		227,482
Oscar US Funding Trust VI LLC 2017-1A A3+^		2.82			6/10/2021		370,000		369,945		369,829
Oscar US Funding Trust VI LLC 2017-1A A4+^		3.30			5/10/2024		500,000		501,925		501,657
Oxford Finance Funding LLC 2016-1A A^		3.97			6/17/2024		170,000		170,000		170,645
PHEAA Student Loan Trust 2016-2A A, 1M USD LIBOR + 0.950%^		2.50	#		11/25/2065		675,692		675,692		676,900
Popular ABS Mortgage Pass-Through Trust 2006-B A3, 1M USD LIBOR + 0.280%		1.83	#		5/25/2036		79,097		76,045		78,957
Prestige Auto Receivables Trust 2015-1 B^		2.04			4/15/2021		260,000		260,669		259,866
Santander Drive Auto Receivables Trust 2014-4 D		3.10			11/16/2020		540,000		544,412		545,150
Santander Drive Auto Receivables Trust 2015-2 C		2.44			4/15/2021		720,000		724,239		721,514
Santander Drive Auto Receivables Trust 2016-1 A3		1.62			3/16/2020		43,885		43,881		43,877
Santander Drive Auto Receivables Trust 2016-1 B		2.47			12/15/2020		360,000		359,988		360,457
Santander Drive Auto Receivables Trust 2016-1 D		4.02			4/15/2022		430,000		438,238		440,903
SBA Tower Trust^		3.17			4/11/2022		630,000		630,862		622,532
SBA Tower Trust^		3.60			4/10/2018		1,050,000		1,048,874		1,049,511
SBA Tower Trust 2014-1A C^		2.90			10/15/2044		590,000		591,522		591,418
Sierra Timeshare Receivables Funding LLC 2014-1A A^		2.07			3/20/2030		65,426		65,058		65,273
Sierra Timeshare Receivables Funding LLC 2014-2A A^		2.05			6/20/2031		56,658		56,060		56,542
Sierra Timeshare Receivables Funding LLC 2014-3A A^		2.30			10/20/2031		216,823		215,587		216,086
Sierra Timeshare Receivables Funding LLC 2015 3A B^		3.08			9/20/2032		30,624		30,624		30,457

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Sierra Timeshare Receivables Funding LLC 2015-1A A^		2.40	%		3/22/2032		164,280	$	162,358	$	162,886
Sierra Timeshare Receivables Funding LLC 2015-2A B^		3.02			6/20/2032		25,488		25,483		25,460
Sierra Timeshare Receivables Funding LLC 2015-3A A^		2.58			9/20/2032		30,624		30,619		30,554
Sierra Timeshare Receivables Funding LLC 2017-1A A^		2.91			3/20/2034		938,440		941,933		939,819
SLC Private Student Loan Trust 2006-A A5, 3M USD LIBOR + 0.170%		1.53	#		7/15/2036		38,006		37,796		38,006
SLC Private Student Loan Trust 2006-A C, 3M USD LIBOR + 0.450%		1.81	#		7/15/2036		350,000		310,843		333,859
SLC Student Loan Trust 2005-1 B, 3M USD LIBOR + 0.200%		1.62	#		2/15/2045		459,739		402,008		423,557
SLC Student Loan Trust 2006-2 B, 3M USD LIBOR + 0.230%		1.60	#		1/25/2041		836,403		785,012		786,619
SLC Student Loan Trust 2006-2 B, 3M USD LIBOR + 0.230%		1.82	#		12/15/2039		2,111,774		1,958,187		1,957,007
SLM Student Loan Trust 2003-12 A5, 3M USD LIBOR + 0.280%^		1.87	#		9/15/2022		8,665		8,616		8,668
SLM Student Loan Trust 2003-14 A6, 3M USD LIBOR + 0.300%		1.67	#		7/25/2025		40,000		38,629		39,888
SLM Student Loan Trust 2003-4 B, 3M USD LIBOR + 0.650%		2.24	#		6/15/2038		122,547		112,550		117,516
SLM Student Loan Trust 2004-3A A6A, 3M USD LIBOR + 0.550%^		1.92	#		10/25/2064		1,550,000		1,522,177		1,533,113
SLM Student Loan Trust 2005-4 B, 3M USD LIBOR + 0.180%		1.55	#		7/25/2055		403,111		336,757		375,873
SLM Student Loan Trust 2005-6 B, 3M USD LIBOR + 0.290%		1.66	#		1/25/2044		998,548		916,161		941,347
SLM Student Loan Trust 2006-5 B, 3M USD LIBOR + 0.210%		1.58	#		10/25/2040		452,686		391,652		426,820
SLM Student Loan Trust 2006-7 B, 3M USD LIBOR + 0.200%		1.57	#		1/27/2042		657,445		609,026		609,893
SLM Student Loan Trust 2006-9 A5, 3M USD LIBOR + 0.100%		1.47	#		1/26/2026		100,775		98,384		100,466
SLM Student Loan Trust 2012-5 A2, 1M USD LIBOR + 0.300%		1.63	#		6/25/2019		5,693		5,675		5,693
SMB Private Education Loan Trust 2014-A A2B, 1M USD LIBOR + 1.150%^		2.63	#		5/15/2026		720,599		726,213		729,996
SMB Private Education Loan Trust 2015-A A2B, 1M USD LIBOR + 1.000%^		2.48	#		6/15/2027		99,604		97,974		100,473
SMB Private Education Loan Trust 2015-A A3, 1M USD LIBOR + 1.500%^		2.98	#		2/17/2032		900,000		921,145		924,911

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
SMB Private Education Loan Trust 2015-C A3, 1M USD LIBOR + 1.950%^		3.43	# %		8/16/2032		700,000	$	731,311	$	724,345
SMB Private Education Loan Trust 2016-A A1, 1M USD LIBOR + 0.700%^		2.18	#		5/15/2023		69,827		69,827		69,853
SMB Private Education Loan Trust 2016-B A2B, 1M USD LIBOR + 1.450%^		2.93	#		2/17/2032		132,000		132,000		135,363
SMB Private Education Loan Trust 2016-C A2B, 1M USD LIBOR + 1.100%^		2.58	#		9/15/2034		280,000		280,000		284,674
SMB Private Education Loan Trust 2017-B A2B, 1M USD LIBOR + 0.750%^		2.10	#		10/15/2035		670,000		670,000		669,943
SoFi Consumer Loan Program LLC 2016-1A A^		3.26			8/25/2025		684,147		686,552		688,139
SoFi Consumer Loan Program LLC 2016-2A A^		3.09			10/27/2025		273,949		273,912		275,309
SoFi Consumer Loan Program LLC 2016-3 A^		3.05			12/26/2025		242,022		242,017		243,182
SoFi Consumer Loan Program LLC 2016-5 A^		3.06			9/25/2028		1,377,793		1,373,477		1,381,224
SoFi Consumer Loan Program LLC 2017-2 A^		3.28			2/25/2026		603,600		602,676		609,204
SoFi Consumer Loan Program LLC 2017-3 A^		2.77			5/25/2026		906,030		906,030		908,805
SoFi Consumer Loan Program Trust 2015-1 A^		3.28			9/15/2023		585,057		585,355		586,694
SoFi Professional Loan Program LLC 2015-A RC^¤		Zero Coupon			3/25/2033		300		844,125		600,000
SoFi Professional Loan Program LLC 2015-C A2^		2.51			8/25/2033		45,240		45,018		44,878
SoFi Professional Loan Program LLC 2016 A A1, 1M USD LIBOR + 1.750%^		3.30	#		8/25/2036		179,557		178,026		183,927
SoFi Professional Loan Program LLC 2016-B A1, 1M USD LIBOR + 1.200%^		2.75	#		6/25/2033		212,419		212,419		215,874
SoFi Professional Loan Program LLC 2016-B A2A^		1.68			3/25/2031		81,321		81,316		81,203
SoFi Professional Loan Program LLC 2016-D A1, 1M USD LIBOR + 0.950%^		2.50	#		1/25/2039		138,673		138,673		140,077
SoFi Professional Loan Program LLC 2016-E A2B^		2.49			1/25/2036		330,000		329,372		328,043
SoFi Professional Loan Program LLC 2017-D R1^¤		Zero Coupon			9/25/2040		1,233,700		705,663		698,151
SpringCastle America Funding LLC 2016-AA A^		3.05			4/25/2029		492,693		492,676		495,749
Springleaf Funding Trust 2016-AA A^		2.90			11/15/2029		1,560,000		1,559,776		1,562,299
SPS Servicer Advance Receivable 2016-T1 AT1^		2.53			11/16/2048		1,040,000		1,039,911		1,030,872
SVO VOI Mortgage LLC 2012-AA A^		2.00			9/20/2029		324,886		320,685		322,103
Taco Bell Funding LLC 2016-1A A2I^		3.83			5/25/2046		325,875		326,935		330,443
TAL Advantage LLC 2017-1A A		4.50			4/20/2042		674,899		682,953		692,123
TAL Advantage V LLC 2014-3A A^		3.27			11/21/2039		415,000		410,644		409,297
Trafigura Securitisation Finance PLC 2017-1, 1M USD LIBOR + 1.700%+^		3.18	#		12/15/2020		900,000		902,979		904,189
Trinity Rail Leasing LP 2012-1A A1^		2.27			1/15/2043		54,285		52,703		53,381
TRIP Rail Master Funding LLC 2011-1A A2^		6.02			7/15/2041		1,250,000		1,334,465		1,352,586
TRIP Rail Master Funding LLC 2014-1A A2^		4.09			4/15/2044		700,000		713,922		706,931

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
TRIP Rail Master Funding LLC 2017-1A A1^		2.71	%		8/15/2047		236,324	$	236,321	$	235,400
Triton Container Finance IV LLC 2017-2A A^		3.62			8/20/2042		873,164		873,064		874,095
VSE VOI Mortgage LLC 2016-A A^		2.54			7/20/2033		572,273		572,218		567,403
Wachovia Student Loan Trust 2005-1 B, 3M USD LIBOR + 0.300%		1.67	#		10/25/2040		767,652		703,804		710,880
Welk Resorts LLC 2017-AA B^		3.41			6/15/2033		367,804		367,744		364,182
Wendys Funding LLC 2015-1A A2I^		3.37			6/15/2045		928,625		926,907		931,114
Westgate Resorts LLC 2015-2A A^		3.20			7/20/2028		189,044		188,828		188,714
Westgate Resorts LLC 2017-1A A^		3.05			12/20/2030		449,102		449,102		448,259
Westlake Automobile Receivables Trust 2016-2A A2^		1.57			6/17/2019		59,669		59,667		59,645
Total Other Asset-Backed Securities							114,476,681		113,848,951		114,194,366
Total Asset-Backed Securities							131,894,749		131,257,337		131,690,343
Corporate Bonds — 42.4%*:
Advertising — 0.2%*:
S&P Global, Inc.		2.50			8/15/2018		260,000		260,266		260,752
S&P Global, Inc.		3.30			8/14/2020		700,000		720,252		713,021
Total Advertising							960,000		980,518		973,773
Aerospace/Defense — 0.8%*:
Harris Corp.		2.00			4/27/2018		1,195,000		1,195,712		1,193,751
Harris Corp.		2.70			4/27/2020		890,000		896,243		893,578
L3 Communications Corp.		5.20			10/15/2019		1,435,000		1,492,794		1,503,041
Total Aerospace/Defense							3,520,000		3,584,749		3,590,370
Agriculture — 1.0%*:
Bunge Ltd. Finance Corp.		3.00			9/25/2022		440,000		439,917		436,723
Bunge Ltd. Finance Corp.		3.50			11/24/2020		1,620,000		1,650,776		1,653,796
Imperial Brands Finance PLC+^		2.05			7/20/2018		335,000		334,679		334,698
Imperial Brands Finance PLC+^		2.95			7/21/2020		1,747,000		1,773,017		1,763,865
Total Agriculture							4,142,000		4,198,389		4,189,082
Airlines — 0.3%*:
Delta Air Lines, Inc.		3.63			3/15/2022		1,050,000		1,053,760		1,068,142
Auto Manufacturers — 1.0%*:
General Motors Co.		3.50			10/2/2018		250,000		251,532		252,601
General Motors Financial Co., Inc.		3.20			7/13/2020		1,600,000		1,603,165		1,621,716
Hyundai Capital America^		2.00			7/1/2019		70,000		69,975		69,162
Hyundai Capital America^		2.40			10/30/2018		150,000		150,023		149,855
Hyundai Capital America^		2.55			2/6/2019		1,138,000		1,142,545		1,135,999
Hyundai Capital America^		3.00			10/30/2020		480,000		485,149		479,520
Nissan Motor Acceptance Corp.+^		1.90			9/14/2021		670,000		665,880		651,811
Total Auto Manufacturers							4,358,000		4,368,269		4,360,664

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Auto Parts&Equipment — 0.5%*:
Lear Corp.		5.25	%		1/15/2025		300,000	$	322,362	$	320,294
Lear Corp.		5.38			3/15/2024		1,660,000		1,769,866		1,755,860
Total Auto Parts&Equipment							1,960,000		2,092,228		2,076,154
Beverages — 0.5%*:
Anheuser-Busch InBev Finance, Inc.+		2.65			2/1/2021		965,000		975,787		969,842
Coca-Cola Femsa SAB de CV+		2.38			11/26/2018		668,000		671,139		669,615
Molson Coors Brewing Co.		2.10			7/15/2021		325,000		322,896		318,543
Total Beverages							1,958,000		1,969,822		1,958,000
Biotechnology — 0.6%*:
Celgene Corp.		2.25			5/15/2019		250,000		250,213		249,660
Celgene Corp.		2.88			8/15/2020		1,350,000		1,371,735		1,362,582
Celgene Corp.		3.55			8/15/2022		475,000		488,390		489,264
Celgene Corp.		4.00			8/15/2023		223,000		234,070		234,614
Total Biotechnology							2,298,000		2,344,408		2,336,120
Chemicals — 2.1%*:
Air Liquide Finance SA+^		1.75			9/27/2021		1,200,000		1,182,067		1,160,999
Airgas, Inc.+		2.38			2/15/2020		250,000		248,773		249,837
CF Industries, Inc.		7.13			5/1/2020		151,000		165,306		164,635
Dow Chemical Co. (The)		8.55			5/15/2019		125,000		135,869		135,397
Ecolab, Inc.		2.00			1/14/2019		740,000		742,837		738,771
Incitec Pivot Finance LLC+^		6.00			12/10/2019		1,443,000		1,530,080		1,528,564
LyondellBasell Industries NV		5.00			4/15/2019		945,000		974,973		970,257
LyondellBasell Industries NV		6.00			11/15/2021		985,000		1,102,722		1,094,141
RPM International, Inc.		3.45			11/15/2022		380,000		392,448		389,413
RPM International, Inc.		6.13			10/15/2019		1,205,000		1,279,925		1,283,005
Sherwin-Williams Co. (The)		2.75			6/1/2022		1,245,000		1,245,919		1,240,167
Total Chemicals							8,669,000		9,000,919		8,955,186
Commercial Banks — 6.8%*:
ANZ New Zealand Int’l Ltd.+^		2.25			2/1/2019		2,075,000		2,081,557		2,076,463
Banco Santander SA+		3.50			4/11/2022		2,400,000		2,413,884		2,447,155
Bancolombia SA+		5.95			6/3/2021		315,000		338,376		340,672
Bank of America Corp. MTN		2.15			11/9/2020		2,890,000		2,873,405		2,876,764
Bank of America Corp. MTN		2.25			4/21/2020		1,330,000		1,317,750		1,330,929
Capital One Financial Corp.		2.50			5/12/2020		485,000		484,392		484,393
Citigroup, Inc.		2.35			8/2/2021		2,320,000		2,313,002		2,294,709
Citigroup, Inc.		2.45			1/10/2020		90,000		89,975		90,041
First Horizon National Corp.		3.50			12/15/2020		1,870,000		1,885,256		1,909,609
First Tennessee Bank N.A.		2.95			12/1/2019		800,000		800,273		805,324
Goldman Sachs Group, Inc. (The)		2.38			1/22/2018		590,000		590,238		590,120
Goldman Sachs Group, Inc. (The)		2.55			10/23/2019		650,000		649,817		651,223
Goldman Sachs Group, Inc. (The)		2.88			2/25/2021		2,985,000		3,024,898		3,007,070
Itau Unibanco Holding SA+^		2.85			5/26/2018		400,000		399,008		400,400

See accompanying Notes to the Financial Statements.

115

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Commercial Banks (Continued)
JPMorgan Chase & Co.		4.50	%		1/24/2022		2,145,000	$	2,294,263	$	2,295,262
Macquarie Bank Ltd.+^		2.85			1/15/2021		130,000		133,022		130,680
Mitsubishi UFJ Trust & Banking Corp.+^		2.65			10/19/2020		2,080,000		2,093,389		2,083,074
Morgan Stanley MTN		3.75			2/25/2023		1,140,000		1,190,234		1,181,452
Regions Bank		7.50			5/15/2018		212,000		216,297		216,245
Regions Financial Corp.		3.20			2/8/2021		1,750,000		1,790,162		1,780,556
Sumitomo Mitsui Financial Group, Inc.+		2.06			7/14/2021		682,000		676,795		668,370
Sumitomo Mitsui Financial Group, Inc.+		2.85			1/11/2022		580,000		584,618		581,152
SVB Financial Group		5.38			9/15/2020		200,000		213,254		213,755
Turkiye Garanti Bankasi AS+^		4.75			10/17/2019		325,000		331,444		329,881
Total Commercial Banks							28,444,000		28,785,309		28,785,299
Construction Materials — 1.1%*:
Holcim US Finance Sarl & Cie SCS+^		6.00			12/30/2019		1,640,000		1,751,022		1,739,869
Martin Marietta Materials, Inc., 3M USD LIBOR + 0.650%		2.10	#		5/22/2020		530,000		530,000		532,820
Martin Marietta Materials, Inc., 3M USD LIBOR + 0.500%		2.13	#		12/20/2019		445,000		445,000		445,725
Masco Corp.		3.50			4/1/2021		590,000		595,715		599,234
Masco Corp.		7.13			3/15/2020		124,000		136,341		135,213
Standard Industries, Inc.^		5.50			2/15/2023		985,000		1,010,057		1,026,863
Total Construction Materials							4,314,000		4,468,135		4,479,724
Diversified Financial Services — 2.9%*:
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust+		3.95			2/1/2022		1,380,000		1,413,926		1,422,291
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust+		4.50			5/15/2021		300,000		316,220		315,066
Aircastle Ltd.		5.00			4/1/2023		2,301,000		2,468,201		2,424,679
Ally Financial, Inc.		4.75			9/10/2018		2,431,000		2,463,171		2,461,387
Athene Global Funding^		4.00			1/25/2022		2,370,000		2,405,901		2,445,608
Genpact Luxembourg Sarl^		3.70			4/1/2022		1,575,000		1,578,717		1,565,681
International Lease Finance Corp.		3.88			4/15/2018		350,000		350,233		351,603
Lazard Group LLC		4.25			11/14/2020		1,188,000		1,238,412		1,237,396
Total Diversified Financial Services							11,895,000		12,234,781		12,223,711
Electric — 1.8%*:
Ameren Corp.		2.70			11/15/2020		760,000		767,845		762,507
Duke Energy Corp.		1.80			9/1/2021		780,000		762,720		758,670
EDP Finance BV+^		4.13			1/15/2020		981,000		1,009,779		1,010,934
Enel Finance International NV+^		2.88			5/25/2022		1,050,000		1,047,206		1,047,146
Entergy Texas, Inc.		2.55			6/1/2021		460,000		459,910		456,618
Entergy Texas, Inc.		7.13			2/1/2019		934,000		983,759		981,210
Israel Electric Corp. Ltd.+^		7.25			1/15/2019		320,000		335,944		333,402
Majapahit Holding B.V.+^		7.75			1/20/2020		300,000		326,583		328,125

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Electric (Continued)
Puget Energy, Inc.		6.00	%		9/1/2021		675,000	$	751,587	$	746,781
Puget Energy, Inc.		6.50			12/15/2020		321,000		356,050		355,349
Southern Co. (The)		1.85			7/1/2019		130,000		129,987		129,214
Southern Co. (The)		2.35			7/1/2021		570,000		569,648		566,618
Total Electric							7,281,000		7,501,018		7,476,574
Electronics — 0.4%*:
FLIR Systems, Inc.		3.13			6/15/2021		480,000		487,998		483,551
Tech Data Corp.		3.70			2/15/2022		260,000		259,671		260,806
Tyco Electronics Group SA+		2.35			8/1/2019		585,000		587,042		584,494
Tyco Electronics Group SA+		2.38			12/17/2018		200,000		200,777		200,450
Total Electronics							1,525,000		1,535,488		1,529,301
Food — 0.9%*:
Danone SA+^		2.08			11/2/2021		2,110,000		2,095,622		2,064,004
JBS Investments GmbH+^		7.75			10/28/2020		415,000		435,427		423,300
Mondelez International Holdings Netherlands B.V.^		2.00			10/28/2021		800,000		780,741		778,292
Tyson Foods, Inc.		2.65			8/15/2019		335,000		336,418		336,614
Total Food							3,660,000		3,648,208		3,602,210
Hand/Machine Tools — 0.4%*:
Stanley Black & Decker, Inc.		1.62			11/17/2018		415,000		414,849		413,478
Stanley Black & Decker, Inc.		2.45			11/17/2018		1,200,000		1,207,095		1,203,625
Total Hand/Machine Tools							1,615,000		1,621,944		1,617,103
Healthcare-Products — 0.7%*:
Abbott Laboratories		2.35			11/22/2019		600,000		599,625		600,652
Abbott Laboratories		2.90			11/30/2021		1,460,000		1,465,703		1,476,902
Boston Scientific Corp.		2.85			5/15/2020		350,000		352,508		352,775
Zimmer Biomet Holdings, Inc.		2.00			4/1/2018		600,000		600,176		600,218
Total Healthcare-Products							3,010,000		3,018,012		3,030,547
Healthcare-Services — 1.1%*:
Anthem, Inc.		1.88			1/15/2018		250,000		250,002		249,983
Cigna Corp.		4.00			2/15/2022		442,000		467,738		461,607
Cigna Corp.		4.50			3/15/2021		1,170,000		1,238,208		1,229,738
HCA, Inc.		3.75			3/15/2019		1,940,000		1,963,873		1,956,975
Laboratory Corp. of America Holdings		2.63			2/1/2020		710,000		711,884		711,869
Total Healthcare-Services							4,512,000		4,631,705		4,610,172
Home Builders — 0.4%*:
Lennar Corp.		4.50			6/15/2019		150,000		151,742		153,375
Lennar Corp.		4.50			11/15/2019		1,090,000		1,114,798		1,118,613
Lennar Corp.		4.75			4/1/2021		450,000		465,861		468,000
Total Home Builders							1,690,000		1,732,401		1,739,988

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Housewares — 0.0%*:
Newell Brands, Inc.		2.60	%		3/29/2019		171,000	$	172,823	$	171,584
Insurance — 2.9%*:
American International Group, Inc.		3.30			3/1/2021		1,025,000		1,032,614		1,044,911
AmTrust Financial Services, Inc.		6.13			8/15/2023		780,000		775,407		760,012
CNA Financial Corp.		5.75			8/15/2021		341,000		367,650		373,374
Enstar Group Ltd.+		4.50			3/10/2022		950,000		961,252		967,537
Jackson National Life Global Funding^		2.50			6/27/2022		1,925,000		1,920,806		1,903,582
Lincoln National Corp.		4.20			3/15/2022		725,000		769,739		763,492
Lincoln National Corp.		6.25			2/15/2020		400,000		427,071		430,735
Nuveen FIinance LLC^		2.95			11/1/2019		2,070,000		2,094,933		2,089,790
Reinsurance Group of America, Inc.		5.00			6/1/2021		969,000		1,041,004		1,036,153
Trinity Acquisition PLC		3.50			9/15/2021		1,236,000		1,248,559		1,260,103
Unum Group		3.00			5/15/2021		120,000		119,820		120,838
Willis Towers Watson PLC		5.75			3/15/2021		370,000		396,459		402,620
XLIT Ltd.		5.75			10/1/2021		925,000		1,024,134		1,015,224
Total Insurance							11,836,000		12,179,448		12,168,371
Internet — 0.6%*:
Alibaba Group Holding Ltd.+		2.50			11/28/2019		250,000		249,090		250,728
Expedia, Inc.		5.95			8/15/2020		746,000		809,007		802,613
Expedia, Inc.		7.46			8/15/2018		1,249,000		1,289,024		1,288,183
Total Internet							2,245,000		2,347,121		2,341,524
Investment Company Security — 0.6%*:
Ares Capital Corp.		3.63			1/19/2022		420,000		423,635		421,737
Ares Capital Corp.		3.88			1/15/2020		427,000		435,091		434,544
Ares Capital Corp.		4.88			11/30/2018		200,000		202,926		204,566
FS Investment Corp.		4.00			7/15/2019		335,000		336,799		338,971
TCP Capital Corp.		4.13			8/11/2022		1,140,000		1,135,408		1,122,048
Total Investment Company Security							2,522,000		2,533,859		2,521,866
IT Services — 0.8%*:
Dell International LLC/EMC Corp.^		3.48			6/1/2019		405,000		406,211		410,074
Dell International LLC/EMC Corp.^		4.42			6/15/2021		1,180,000		1,222,235		1,229,583
DXC Technology Co.		2.88			3/27/2020		270,000		269,368		271,313
Leidos Holdings, Inc.		4.45			12/1/2020		1,545,000		1,583,544		1,602,937
Total IT Services							3,400,000		3,481,358		3,513,907
Leisure Time — 0.4%*:
Brunswick Corp.^		4.63			5/15/2021		1,476,000		1,501,569		1,500,304
Lodging — 0.4%*:
Marriott International, Inc.		2.30			1/15/2022		300,000		299,090		294,534
Marriott International, Inc.		2.88			3/1/2021		1,345,000		1,362,892		1,353,644
Total Lodging							1,645,000		1,661,982		1,648,178

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Machinery-Diversified — 0.5%*:
CNH Industrial Capital LLC		3.38	%		7/15/2019		945,000	$	952,840	$	952,088
CNH Industrial Capital LLC		3.88			10/15/2021		1,110,000		1,127,126		1,129,469
Total Machinery-Diversified							2,055,000		2,079,966		2,081,557
Media — 0.8%*:
Charter Communications Operating LLC/Charter Communications Operating Capital		3.58			7/23/2020		930,000		944,207		947,336
Discovery Communications LLC		2.95			3/20/2023		545,000		544,346		539,374
Sirius XM Radio, Inc.^		3.88			8/1/2022		1,888,000		1,914,740		1,892,720
Viacom, Inc.		2.75			12/15/2019		118,000		119,863		117,823
Total Media							3,481,000		3,523,156		3,497,253
Mining — 1.1%*:
Anglo American Capital PLC+^		3.75			4/10/2022		1,150,000		1,165,128		1,168,584
Glencore Finance Canada Ltd.+^		4.25			10/25/2022		484,000		508,890		507,135
Glencore Funding LLC^+		3.00			10/27/2022		730,000		727,915		722,883
Kinross Gold Corp.		5.13			9/1/2021		990,000		1,050,537		1,032,075
Newcrest Finance Pty Ltd.+^		4.20			10/1/2022		1,145,000		1,206,759		1,192,528
Total Mining							4,499,000		4,659,229		4,623,205
Office/Business Equip — 0.6%*:
Pitney Bowes, Inc.		3.63			10/1/2021		2,765,000		2,741,409		2,571,450
Oil and Gas — 0.2%*:
EQT Corp.		3.00			10/1/2022		1,045,000		1,041,744		1,033,864
Packaging and Containers — 0.5%*:
Graphic Packaging International, Inc.		4.75			4/15/2021		2,006,000		2,098,755		2,096,270
Pharmaceuticals — 1.6%*:
AbbVie, Inc.		1.80			5/14/2018		1,160,000		1,160,767		1,159,432
AbbVie, Inc.		2.30			5/14/2021		150,000		148,998		148,904
Allergan Funding SCS		2.35			3/12/2018		655,000		655,573		655,519
Baxalta, Inc.		2.00			6/22/2018		705,000		704,869		704,837
Express Scripts Holding Co.		3.30			2/25/2021		1,590,000		1,613,411		1,614,955
Express Scripts Holding Co.		4.75			11/15/2021		450,000		487,998		479,443
Shire Acquisitions Investments Ireland DAC		2.40			9/23/2021		360,000		359,579		354,334
Teva Pharmaceutical Finance Netherlands III B.V.+		2.20			7/21/2021		1,990,000		1,957,577		1,817,806
Total Pharmaceuticals							7,060,000		7,088,772		6,935,230
Pipelines — 0.1%*:
Andeavor Logistics LP/Tesoro Logistics Finance Corp.		3.50			12/1/2022		290,000		289,116		289,450

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Real Estate Investment Trusts — 1.6%*:
American Tower Corp.		2.25	%		1/15/2022		330,000	$	329,637	$	321,408
American Tower Corp.		3.00			6/15/2023		1,250,000		1,246,811		1,246,726
American Tower Corp.		3.30			2/15/2021		530,000		536,269		539,718
Crown Castle International Corp.		3.40			2/15/2021		1,172,000		1,202,578		1,196,892
DDR Corp.		3.50			1/15/2021		890,000		901,816		903,465
DDR Corp. MTN		7.50			7/15/2018		31,000		31,841		31,846
Digital Realty Trust LP		3.40			10/1/2020		385,000		387,878		392,612
Duke Realty LP		3.88			2/15/2021		100,000		102,305		103,350
Healthcare Trust of America Holdings LP		2.95			7/1/2022		370,000		369,795		369,025
Highwoods Realty LP		7.50			4/15/2018		370,000		375,454		375,599
Simon Property Group LP		2.35			1/30/2022		955,000		950,260		945,938
Weyerhaeuser Co.		7.38			10/1/2019		315,000		338,165		341,367
Total REITS							6,698,000		6,772,809		6,767,946
Retail — 1.3%*:
AutoNation, Inc.		3.35			1/15/2021		1,365,000		1,379,755		1,384,878
CVS Health Corp.		2.13			6/1/2021		1,415,000		1,408,818		1,380,911
Dollar Tree, Inc.		5.75			3/1/2023		1,840,000		1,933,379		1,927,400
QVC, Inc.		3.13			4/1/2019		857,000		866,564		860,198
Total Retail							5,477,000		5,588,516		5,553,387
Semiconductors — 0.8%*:
Analog Devices, Inc.		2.50			12/5/2021		250,000		249,192		247,538
Broadcom Corp./Broadcom Cayman Finance Ltd.^		3.00			1/15/2022		1,385,000		1,385,150		1,373,268
KLA-Tencor Corp.		3.38			11/1/2019		427,000		434,560		434,040
NXP BV/NXP Funding LLC^		4.13			6/1/2021		1,270,000		1,299,997		1,295,400
Total Semiconductors							3,332,000		3,368,899		3,350,246
Telecommunications — 1.3%*:
Hughes Satellite Systems Corp.		6.50			6/15/2019		1,932,000		2,036,837		2,018,940
Sprint Communications, Inc.		9.25			4/15/2022		705,000		857,106		840,713
Telefonaktiebolaget LM Ericsson+		4.13			5/15/2022		1,970,000		2,007,462		1,983,830
Verizon Communications, Inc.		2.95			3/15/2022		760,000		771,296		764,629
Total Telecommunications							5,367,000		5,672,701		5,608,112
Toys/Games/Hobbies — 0.1%*:
Mattel, Inc.		1.70			3/15/2018		600,000		598,905		597,750
Transportation — 1.1%*:
Asciano Finance Ltd.+^		5.00			4/7/2018		970,000		975,588		976,170
Penske Truck Leasing Co. LP/PTL Finance Corp.^		2.50			6/15/2019		285,000		283,018		285,551
Penske Truck Leasing Co. LP/PTL Finance Corp.^		3.05			1/9/2020		590,000		596,382		597,076
Penske Truck Leasing Co. LP/PTL Finance Corp.^		3.20			7/15/2020		135,000		134,949		137,014
Penske Truck Leasing Co. LP/PTL Finance Corp.^		3.30			4/1/2021		240,000		245,422		244,441

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Transportation (Continued)
Penske Truck Leasing Co. LP/PTL Finance Corp.^		3.38	%		2/1/2022		80,000	$	81,191	$	81,498
Penske Truck Leasing Co. LP/PTL Finance Corp.^		4.88			7/11/2022		490,000		533,194		528,989
Ryder System, Inc. MTN		2.25			9/1/2021		635,000		631,100		625,170
Ryder System, Inc. MTN		2.45			9/3/2019		200,000		202,294		200,220
Ryder System, Inc. MTN		2.50			3/1/2018		250,000		250,069		250,047
Ryder System, Inc. MTN		2.55			6/1/2019		185,000		184,818		185,510
Ryder System, Inc. MTN		2.88			9/1/2020		310,000		310,446		312,139
TTX Co.^		2.25			2/1/2019		250,000		249,882		249,386
Total Transportation							4,620,000		4,678,353		4,673,211
Trucking and Leasing — 1.2%*:
Aviation Capital Group LLC^		2.88			9/17/2018		1,465,000		1,470,135		1,469,916
Aviation Capital Group LLC^		6.75			4/6/2021		200,000		215,104		223,523
DAE Funding LLC+^		4.00			8/1/2020		276,000		276,000		278,760
GATX Corp.		2.50			7/30/2019		250,000		251,657		249,524
GATX Corp.		2.60			3/30/2020		685,000		680,239		684,826
Park Aerospace Holdings Ltd.^		5.25			8/15/2022		2,045,000		2,120,849		2,032,219
Total Trucking and Leasing							4,921,000		5,013,984		4,938,768
Venture Capital — 0.4%*:
Hercules Capital, Inc.		4.63			10/23/2022		1,725,000		1,715,823		1,753,662
Total Corporate Bonds							176,097,000		179,580,360		178,839,215
Mortgage-Backed Securities — 0.9%*:
COMM Mortgage Trust 2014-UBS2 B		4.70			3/10/2047		600,000		643,734		629,606
JP Morgan Mortgage Trust 2017-6 A5^		3.50	#@		12/25/2048		1,130,000		1,145,006		1,145,528
JPMorgan Chase Commercial Mortgage Securities Trust 2007-CIBC18 AM		5.47	#@		6/12/2047		216,229		221,419		216,062
New Residential Mortgage Loan Trust 2016-4A A1^		3.75	#@		11/25/2056		473,421		487,572		484,667
Shellpoint Co-Originator Trust 2016-1 2A3^		3.00	#@		10/25/2031		912,369		921,747		910,766
Velocity Commercial Capital Loan Trust 2016-2 AFX		3.00	#@		10/25/2046		390,822		390,821		390,784
Total Mortgage-Backed Securities							3,722,841		3,810,299		3,777,413
U.S. Treasury & Government Agencies — 3.1%*:
Federal Home Loan Mortgage Corp., 1M LIBOR + 0.450%		1.93	#		9/15/2042		353,526		351,800		355,809
Federal Home Loan Mortgage Corp., 1M LIBOR + 0.480%		1.96	#		10/15/2040		398,238		397,869		400,683
Federal Home Loan Mortgage Corp.		3.00			8/15/2040		899,038		912,507		907,158
Federal Home Loan Mortgage Corp.		3.00			3/15/2041		766,456		776,860		775,501

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
U.S. Treasury & Government Agencies (Continued)
Federal National Mortgage Association		3.00	%		4/25/2040		1,173,558	$	1,187,304	$	1,186,259
Federal National Mortgage Association		3.00			1/25/2041		606,025		613,826		613,084
U.S. Treasury Note		0.75			10/31/2018		2,000,000		1,991,858		1,983,516
U.S. Treasury Note		0.88			7/31/2019		1,100,000		1,098,211		1,083,414
U.S. Treasury Note		1.63			3/15/2020		5,800,000		5,824,113		5,764,656
Total U.S. Treasury & Government Agencies							13,096,841		13,154,348		13,070,080
Total Fixed Income							324,811,431		327,802,344		327,377,051

COUNTERPARTY	STRIKE PRICE		EXPIRATION DATE		CONTRACTS		NOTIONAL		COST		UNREALIZED VALUE			FAIR VALUE
Purchased Options — 0.4%*:
Call Option Purchased — 0.1%*:
OTC – BCM Swaption JPMorgan Chase Bank N.A.		$2.44		12/13/2032		11,190,000		11,190,000		561,458		(17,520	)		543,938
Put Option Purchased — 0.3%*:
OTC – BCM Swaption JPMorgan Chase Bank N.A.		2.94		12/13/2032		22,790,000		22,790,000		1,143,488		(66,404	)		1,077,085

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Short-Term Investments — 21.7%*:
Bank Deposit — 0.1%*:
State Street Bank & Trust Co. Euro Time Deposit		0.12	%		1/2/2018		239,949		239,949		239,949
Commercial Paper — 21.6%*:
Auto Manufacturers — 1.7%*:
Harley-Davidson Motorcycle Trust		Zero Coupon			1/18/2018		3,705,000		3,702,446		3,702,446
Hyundai Capital America		Zero Coupon			1/29/2018		3,640,000		3,635,668		3,635,668
Total Auto Manufacturers							7,345,000		7,338,114		7,338,114
Chemicals — 1.7%*:
Ei Du Pont De Nemours		Zero Coupon			1/2/2018		3,491,000		3,490,861		3,490,861
Potash Corp. of Saskatchewan, Inc.		Zero Coupon			1/26/2018		3,500,000		3,496,111		3,496,111
Total Chemicals							6,991,000		6,986,972		6,986,972
Electrical Components and Equipment — 1.1%*:
Fortive Corp.		Zero Coupon			3/14/2018		1,000,000		995,800		995,800
Molex Electronics Technologies		Zero Coupon			1/4/2018		3,750,000		3,749,497		3,749,497
Total Electrical Components and Equipment							4,750,000		4,745,297		4,745,297
Food — 0.4%*:
Anheuser-Busch InBev Worldwide, Inc.		Zero Coupon			1/10/2018		1,550,000		1,549,438		1,549,438

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE		DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Commercial Paper (Continued)
Household Products — 0.9%*:
Clorox Co. (The)		Zero Coupon		2/5/2018		2,500,000	$	2,495,382	$	2,495,382
Reckitt Benckiser Treasury Services PLC		Zero Coupon		1/16/2018		1,500,000		1,499,063		1,499,063
Total Household Products						4,000,000		3,994,445		3,994,445
Lodging — 0.9%*:
Carnival Corp.		Zero Coupon		1/16/2018		3,750,000		3,747,656		3,747,656
Media — 0.8%*:
Time Warner, Inc.		Zero Coupon		1/4/2018		3,500,000		3,499,431		3,499,431
Oil and Gas — 2.3%*:
FMC Technologies, Inc.		Zero Coupon		1/8/2018		3,750,000		3,748,877		3,748,877
Schlumberger Holdings Corp.		Zero Coupon		2/27/2018		2,500,000		2,493,667		2,493,667
Suncor Energy, Inc.		Zero Coupon		1/16/2018		3,400,000		3,397,846		3,397,846
Total Oil and Gas						9,650,000		9,640,390		9,640,390
Pipelines — 1.8%*:
Enterprise Products Operating LLC		Zero Coupon		1/29/2018		3,750,000		3,745,421		3,745,421
Spectra Energy Partners LP		Zero Coupon		1/8/2018		3,760,000		3,758,596		3,758,596
Total Pipelines						7,510,000		7,504,017		7,504,017
Retail — 0.4%*:
Walgreens Boots Alliance, Inc.		Zero Coupon		2/20/2018		1,750,000		1,746,135		1,746,135
Semiconductors — 0.8%*:
Lam Research Corp.		Zero Coupon		1/4/2018		3,500,000		3,499,551		3,499,551
Software — 0.7%*:
Thomson Reuters Corp.		Zero Coupon		2/13/2018		3,000,000		2,994,195		2,994,195
Telecommunications — 2.3%*:
Bell Canada		Zero Coupon		3/2/2018		3,750,000		3,739,562		3,739,562
Rogers Communications, Inc.		Zero Coupon		1/4/2018		3,750,000		3,749,541		3,749,541
Telus Corp.		Zero Coupon		3/12/2018		2,000,000		1,993,000		1,993,000
Total Telecommunications						9,500,000		9,482,103		9,482,103
Transportation — 0.9%*:
FedEx Corp.		Zero Coupon		1/8/2018		3,750,000		3,748,914		3,748,914
Utilities — 4.9%*:
Dominion Resources, Inc.		Zero Coupon		1/16/2018		3,500,000		3,497,769		3,497,769
Entergy Corp.		Zero Coupon		1/29/2018		3,750,000		3,745,392		3,745,392
Public Service Enterprise Group, Inc.		Zero Coupon		1/22/2018		3,750,000		3,746,675		3,746,675
Sempra Energy Holdings		Zero Coupon		1/8/2018		3,000,000		2,999,113		2,999,113
Southern Co. Gas Capital		Zero Coupon		1/16/2018		2,000,000		1,998,542		1,998,542

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE		DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Commercial Paper (Continued)
Utilities (Continued)
Southern Co. Gas Capital		Zero Coupon		1/26/2018		3,750,000	$	3,744,922	$	3,744,922
Xcel Energy, Inc.		Zero Coupon		4/23/2018		1,000,000		994,773		994,773
Total Utilities						20,750,000		20,727,186		20,727,186
Total Commercial Paper						91,296,000		91,203,844		91,203,844
Total Short-Term Investments						91,535,949		91,443,793		91,443,793
Total Investments						450,327,380		420,951,083		420,441,867
Other assets and liabilities – 0.3%*										1,155,426
Net Assets – 100.0%										$421,597,293

MTN Medium Term Note

OTC Over the Counter

‡‡ 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	89.1%
Japan	1.4%
Ireland	1.1%
Canada	1.0%
Other (Individually less than 1%)	7.4%
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.

¤ For fair value measurement disclosure purposes, security is categorized as Level 3 (See Note 2).

# Variable rate security. The interest rate shown is the rate in effect at December 31, 2017.

@ Effective interest rate for this security is the coupon rate at issue based on the underlying loans.

** Variable Rate is Fixed to Float: Rate remains fixed until designated future date.

A summary of outstanding derivatives at December 31, 2017 is as follows:

Futures

TYPE	EXPIRATION DATE	CONTRACTS		NOTIONAL AMOUNT		POSITION		FAIR VALUE		UNREALIZED DEPRECIATION
Long Futures
U.S. 10-Year Treasury Note	03/20/18		235		29,240,956		Long	$	29,151,015	$	(89,941	)
U.S. 2-Year Treasury Note	03/29/18		196		42,049,929		Long		41,965,438		(84,491	)
Total Long Futures										$	(174,432	)

See accompanying Notes to the Financial Statements.

124

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

TYPE	EXPIRATION DATE	CONTRACTS		NOTIONAL AMOUNT		POSITION		FAIR VALUE		UNREALIZED APPRECIATION
Short Futures
U.S. 10-Year Ultra Bond	03/20/18		92		12,302,547		Short	$	12,287,750	$	14,797
U.S. 5-Year Treasury Note	03/29/18		861		100,500,227		Short		100,017,258		482,969
Total Short Futures										$	497,766

OTC Credit Default Swaps – Sell Protection ⁽¹⁾⁽²⁾

REFERENCE OBLIGATION	FIXED-DEAL RECEIVED RATE			PAYMENT FREQUENCY		MATURITY DATE		COUNTERPARTY	ORIGINAL NOTIONAL AMOUNT		CURRENT NOTIONAL AMOUNT (3)		UPFRONT PREMIUMS PAID/ (RECEIVED)			FAIR VALUE (4)			UNREALIZED DEPRECIATION
CMBX.NA.BBB-.6†		3.00	%		1M		11/17/2045	JPMorgan Chase Bank N.A.		230,000		230,000	$	524		$	(33,653	)	$	(34,177	)
CMBX.NA.BBB-.6†		3.00	%		1M		5/11/2063	Goldman Sachs & Co.		290,000		290,000		(21,637	)		(42,433	)		(20,796	)
Total OTC Credit Default Swaps													$	(21,113	)	$	(76,086	)	$	(54,973	)

(1) If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

(2) Represents an investment grade index of single name credit default swaps (CDS). All of the companies underlying the single name CDS within the index are rated investment grade or higher. Rating represents a weighted average of the credit ratings of all the companies underlying the single name CDS within the index.

(3) The maximum potential amount the Portfolio could be required to make as a seller of credit protection or receive as a buyer of credit event as defined under the terms of that particular swap agreement.

(4) The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the expected amount paid or received for the credit derivative if the amount of the swap agreement was closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreements.

† Payment is based on a percentage of the index. Reference entities are a number of individual issuers comprising the index.

Abbreviation Legend

OTC — Over the Counter

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 88.4%*:
Asset-Backed Securities — 27.4%*:
CDO/CLO — 4.7%*:
ALM VII Ltd. 2012-7A A1R, 3M USD LIBOR + 1.480%^		2.84	#%		10/15/2028		250,000		$250,000		$252,087
ALM XIV Ltd. 2014-14A A1R, 3M USD LIBOR + 1.150%^		2.53	#		7/28/2026		250,000		250,000		250,511
Carlyle Global Market Strategies CLO Ltd. 2014-4A A1R, 3M USD LIBOR + 1.200%^		2.56	#		10/15/2026		250,000		250,000		250,485
LCM XXIII Ltd. 23A A1, 3M USD LIBOR + 1.400%^		2.76	#		10/20/2029		250,000		250,000		253,172
Madison Park Funding XIV Ltd. 2014-14A A1R, 3M USD LIBOR + 1.120%^		2.48	#		7/20/2026		250,000		250,000		251,117
Marble Point CLO XI Ltd. 2017-2A A, 3M USD LIBOR + 1.180%^		2.79	#		12/18/2030		250,000		250,000		250,099
Total CDO/CLO							1,500,000		1,500,000		1,507,471
Other Asset-Backed Securities — 22.7%*:
Access Group, Inc. 2006-1 B, 3M USD LIBOR + 0.450%		1.91	#		8/25/2037		89,696		78,674		84,271
Access Group, Inc. 2015-1 A, 1M USD LIBOR + 0.700%^		2.25	#		7/25/2056		60,356		59,047		60,429
Access Group, Inc. 2015-1 B, 1M USD LIBOR + 1.500%^		3.05	#		7/25/2058		100,000		86,487		86,343
AccessLex Institute 2004-A A3, 28 day ARS		2.29	#		7/1/2039		100,000		98,130		98,652
Arbys Funding LLC 2015-1A A2^		4.97			10/30/2045		39,200		39,200		40,036
Argent Securities, Inc. Asset-Backed Pass-Through Certificates 2004-W10 M1, 1M USD LIBOR + 0.900%		2.23	#		10/25/2034		52,581		47,835		50,853
Asset Backed Securities Corp. Home Equity Loan Trust 2005-HE1 M1, 1M USD LIBOR + 0.750%		2.30	#		3/25/2035		60,668		60,315		61,926
CKE Restaurant Holdings, Inc. 2013-1A A2^		4.47			3/20/2043		115,211		117,900		115,455
CLI Funding V LLC 2013-2A^		3.22			6/18/2028		51,427		50,859		51,107
CLI Funding VI LLC 2016-1A A^		4.21			2/18/2041		69,151		69,145		68,638
College Loan Corp. Trust I 2005-2 B, 3M USD LIBOR + 0.490%		1.85	#		1/15/2037		101,512		89,582		93,327
College Loan Corp. Trust I 2017-1 B2, 28 day ARS¤		Zero Coupon			1/25/2047		45,000		38,402		38,700
Credit Suisse ABS Repackaging Trust 2013-A B^		2.50			1/25/2030		53,322		50,702		50,332
CWABS Asset-Backed Certificates Trust 2005-4 MV5, 1M USD LIBOR + 0.670%		2.00	#		10/25/2035		60,000		54,043		60,088
DB Master Finance LLC 2015-1A A2II^		3.98			2/20/2045		48,625		49,611		49,789
Diamond Resorts Owner Trust 2013-2 A^		2.27			5/20/2026		29,957		29,782		29,898
Diamond Resorts Owner Trust 2015-1 A^		2.73			7/20/2027		24,391		24,389		24,231
Diamond Resorts Owner Trust 2016-1 B^		3.37			11/20/2028		69,675		69,663		68,599
Domino’s Pizza Master Issuer LLC 2015-1A A2I^		3.48			10/25/2045		59,100		59,100		59,306
Domino’s Pizza Master Issuer LLC 2015-1A A2II^		4.47			10/25/2045		59,100		59,100		60,308

See accompanying Notes to the Financial Statements.

126

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
DRB Prime Student Loan Trust 2015-B A1, 1M USD LIBOR + 1.900%^		3.24	#%		10/27/2031		45,822		$45,741		$46,800
DRB Prime Student Loan Trust 2016-R A1, 1M USD LIBOR + 1.900%^¤		3.46	#		10/25/2044		79,176		79,176		79,967
DRB Prime Student Loan Trust 2016-R A2^¤		3.07			10/25/2044		79,176		79,161		79,967
Drive Auto Receivables Trust 2016-BA B^		2.56			6/15/2020		9,133		9,133		9,142
Drug Royalty Corp Inc. 2012-1 A1, 3M USD LIBOR + 5.250%^		6.13	#		7/15/2024		13,462		13,782		13,592
Earnest Student Loan Program LLC 2016-C A1, 1M USD LIBOR + 1.850%^		3.13	#		10/27/2036		60,103		60,103		61,026
ECMC Group Student Loan Trust 2016-1A A, 1M USD LIBOR + 1.350%^		2.90	#		7/26/2066		75,098		75,098		75,792
EdLinc Student Loan Funding Trust 2017-A A, PRIME – 1.15%^¤		1.01	#		12/1/2047		100,000		99,305		99,305
Element Rail Leasing II LLC 2015-1A A1+^		2.71			2/19/2045		59,219		57,252		58,695
Entergy New Orleans Storm Recovery Funding I LLC 2015-1 A		2.67			6/1/2027		77,694		77,678		77,519
First Franklin Mortgage Loan Trust 2004-FFH4 M6, 1M USD LIBOR + 1.725%		3.28	#		1/25/2035		50,000		49,818		51,122
First Franklin Mortgage Loan Trust 2005 FF3 M3, 1M USD LIBOR + 0.720%		2.27	#		4/25/2035		7,516		7,481		7,532
Flagship Credit Auto Trust 2016-2 A2^		3.05			8/16/2021		60,000		59,997		60,375
Flagship Credit Auto Trust 2016-4 C^		2.71			11/15/2022		40,000		39,998		39,787
Flagship Credit Auto Trust 2017-4 C^		2.92			11/15/2023		100,000		99,814		99,632
FNA Trust 2015-1 A^		3.24			12/10/2023		16,323		16,335		16,230
Goodgreen Trust 2017-1A A^		3.74			10/15/2052		95,952		95,907		95,277
GSAMP Trust 2005-SEA2 A1, 1M USD LIBOR + 0.350%^		1.90	#		1/25/2045		6,437		6,194		6,424
Helios Issuer LLC 2017-1A A^		4.94			9/20/2049		97,788		97,742		100,203
HERO Funding Trust 2015-1A A^		3.84			9/21/2040		102,153		104,014		103,941
Hilton Grand Vacations Trust 2013-A A^		2.28			1/25/2026		76,271		76,107		75,733
J.G. Wentworth XXXV LLC 2015-2A A^		3.87			3/15/2058		47,310		47,274		49,548
Mariner Finance Issuance Trust 2017-AA A^		3.62			2/20/2029		100,000		99,981		100,547
Marlette Funding Trust 2016-1A A^		3.06			1/17/2023		21,015		21,039		21,052
Marlette Funding Trust 2017-2A B^		3.19			7/15/2024		100,000		99,992		100,199
Miramax LLC 2014-1A A2^		3.34			7/20/2026		49,760		50,053		49,801
Montana Higher Education Student Assistance Corp. 2012-1 A3, 1M USD LIBOR + 1.050%		2.51	#		7/20/2043		150,000		145,209		152,241
Navient Student Loan Trust 2016-6 A3, 1M USD LIBOR + 1.300%^		2.77	#		3/25/2066		290,000		290,000		298,189
Navient Student Loan Trust 2017-1A A3, 1M USD LIBOR + 1.150%^		2.64	#		7/26/2066		120,000		120,000		122,855
Navient Student Loan Trust 2017-4A A3, 1M USD LIBOR + 1.000%^		2.53	#		9/27/2066		100,000		100,000		100,954

See accompanying Notes to the Financial Statements.

127

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Nelnet Private Education Loan Trust 2016-A A1B^		3.60	%		12/26/2040		66,369		$65,939		$65,511
New Residential Advance Receivables Trust Advance Receivables Backed Notes 2016-T2 AT2^		2.58			10/15/2049		250,000		250,000		247,613
Northstar Education Finance, Inc. 2005-1 A5, 3M USD LIBOR + 0.750%		2.21	#		10/30/2045		23,830		22,835		22,294
NovaStar Mortgage Funding Trust 2004-4 M5, 1M LIBOR + 1.725%		3.28	#		3/25/2035		96,821		96,797		97,955
NRZ Advance Receivables Trust 2016-T4 AT4^		3.11			12/15/2050		100,000		100,000		99,555
NRZ Advance Receivables Trust Advance Receivables Backed 2016-T3 AT3^		2.83			10/16/2051		230,000		230,000		225,907
OnDeck Asset Securitization Trust II LLC 2016-1A A^		4.21			5/17/2020		100,000		99,977		100,370
OneMain Financial Issuance Trust 2014-2A A^		2.47			9/18/2024		1,570		1,575		1,571
OSCAR US Funding Trust V 2016-2A A4+^		2.99			12/15/2023		130,000		129,209		129,461
Oscar US Funding Trust VI LLC 2017-1A A4+^		3.30			5/10/2024		30,000		29,994		30,099
Popular ABS Mortgage Pass-Through Trust 2006-B A3, 1M USD LIBOR + 0.280%		1.83	#		5/25/2036		38,418		36,936		38,350
Sierra Timeshare Receivables Funding LLC 2015-2A B^		3.02			6/20/2032		25,488		25,483		25,460
SLC Private Student Loan Trust 2006-A A5, 3M USD LIBOR + 0.170%		1.53	#		7/15/2036		10,859		10,799		10,859
SLC Private Student Loan Trust 2006-A C, 3M USD LIBOR + 0.450%		1.81	#		7/15/2036		140,000		125,254		133,544
SLC Student Loan Trust 2005-1 B, 3M USD LIBOR + 0.200%		1.62	#		2/15/2045		97,056		83,505		89,418
SLM Student Loan Trust 2002-7 A11, 28 day ARS		1.38	#		3/15/2028		50,000		49,448		49,991
SLM Student Loan Trust 2002-7 B, 28 day ARS		4.53	#		12/15/2039		80,000		80,061		79,945
SLM Student Loan Trust 2003-2 A9, 28 day ARS		1.38	#		9/15/2028		100,000		99,770		98,977
SLM Student Loan Trust 2003-4 B, 3M USD LIBOR + 0.650%		2.24	#		6/15/2038		69,444		63,779		66,593
SLM Student Loan Trust 2005-4 B, 3M USD LIBOR + 0.180%		1.55	#		7/25/2055		114,263		98,139		106,543
SLM Student Loan Trust 2005-6 B, 3M USD LIBOR + 0.290%		1.66	#		1/25/2044		74,891		69,051		70,601
SLM Student Loan Trust 2006-4 B, 3M USD LIBOR + 0.200%		1.57	#		1/25/2070		61,610		57,686		57,760
SLM Student Loan Trust 2006-5 B, 3M USD LIBOR + 0.210%		1.58	#		10/25/2040		122,348		107,370		115,357
SMB Private Education Loan Trust 2017-A B^		3.62			6/17/2041		130,000		126,046		125,522
SoFi Consumer Loan Program LLC 2016-1A A^		3.26			8/25/2025		57,012		57,007		57,345
SoFi Consumer Loan Program LLC 2016-5 A^		3.06			9/25/2028		95,846		95,546		96,085
SoFi Consumer Loan Program LLC 2017-2 A^		3.28			2/25/2026		67,067		66,964		67,689
SoFi Consumer Loan Program Trust 2015-1 A^		3.28			9/15/2023		62,162		62,194		62,336
SoFi Professional Loan Program LLC 2017-A C^		4.39	#**		3/26/2040		100,000		99,479		100,866

See accompanying Notes to the Financial Statements.

128

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
SoFi Professional Loan Program LLC 2017-D BFX^		3.72	%		9/25/2040		100,000		$99,948		$97,144
South Carolina Student Loan Corp. 2014-1 B, 1M USD LIBOR + 1.500%		2.94	#		8/1/2035		100,000		98,528		97,367
SPS Servicer Advance Receivables Trust Advance Receivables Backed Notes 2016-T2 AT2^		2.75			11/15/2049		100,000		99,986		99,875
Taco Bell Funding LLC 2016-1A A23^		4.76			5/25/2046		69,125		69,742		72,209
Taco Bell Funding LLC 2016-1A A2I^		3.78			5/25/2046		79,000		79,243		80,107
Textainer Marine Containers V Ltd. 2017-1A A+^		3.72			5/20/2042		93,875		93,871		94,702
TRIP Rail Master Funding LLC 2011-1A A2^		6.02			7/15/2041		100,000		107,995		108,207
TRIP Rail Master Funding LLC 2014-1A A2^		4.09			4/15/2044		100,000		101,989		100,990
Triton Container Finance IV LLC 2017-2A A^		3.62			8/20/2042		135,826		135,810		135,970
Triton Container Finance VI LLC 2017-1A A^		3.52			6/20/2042		95,233		95,216		93,857
Wachovia Student Loan Trust 2005-1 B, 3M USD LIBOR + 0.300%		1.67	#		10/25/2040		76,765		70,380		71,088
Welk Resorts LLC 2017-AA B^		3.41			6/15/2033		98,679		98,725		97,707
Wendys Funding LLC 2015-1A A2I^		3.37			6/15/2045		127,075		126,653		127,416
Total Other Asset-Backed Securities							7,319,012		7,174,279		7,255,951
Total Asset-Backed Securities							8,819,012		8,674,279		8,763,422
Corporate Bonds — 31.4%*:
Advertising — 0.1%*:
WPP Finance 2010+		4.90			11/15/2043		35,000		38,126		40,144
Aerospace/Defense — 0.1%*:
Spirit AeroSystems, Inc.		3.85			6/15/2026		5,000		4,997		5,077
United Technologies Corp.		5.70			4/15/2040		25,000		31,288		31,845
Total Aerospace/Defense							30,000		36,285		36,922
Agriculture — 0.3%*:
Bunge Ltd. Finance Corp.		3.25			8/15/2026		25,000		24,980		23,892
Bunge Ltd. Finance Corp.		3.50			11/24/2020		5,000		4,997		5,104
Reynolds American, Inc.		4.45			6/12/2025		30,000		30,531		31,988
Reynolds American, Inc.		5.85			8/15/2045		25,000		30,302		31,219
Total Agriculture							85,000		90,810		92,203
Airlines — 0.2%*:
Delta Air Lines, Inc.		3.63			3/15/2022		45,000		44,995		45,777
WestJet Airlines Ltd.+^		3.50			6/16/2021		14,000		13,986		14,131
Total Airlines							59,000		58,981		59,908
Auto Manufacturers — 0.6%*:
Ford Motor Co.		7.45			7/16/2031		10,000		12,456		13,072
General Motors Co.		4.20			10/1/2027		30,000		29,957		31,086

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Auto Manufacturers (Continued)
General Motors Co.		5.15	%		4/1/2038		20,000		$19,988		$21,323
General Motors Co.		5.20			4/1/2045		35,000		34,590		36,982
General Motors Financial Co., Inc.		3.50			11/7/2024		50,000		49,927		49,898
General Motors Financial Co., Inc.		4.30			7/13/2025		50,000		49,714		52,105
Total Auto Manufacturers							195,000		196,632		204,466
Beverages — 0.2%*:
Anheuser-Busch InBev Worldwide, Inc.+		8.20			1/15/2039		35,000		51,697		55,663
Molson Coors Brewing Co.		4.20			7/15/2046		10,000		9,937		10,190
Total Beverages							45,000		61,634		65,853
Biotechnology — 0.4%*:
Amgen, Inc.		5.15			11/15/2041		25,000		26,024		30,003
Celgene Corp.		3.45			11/15/2027		60,000		59,910		59,955
Celgene Corp.		4.63			5/15/2044		25,000		26,880		26,673
Total Biotechnology							110,000		112,814		116,631
Chemicals — 0.6%*:
Incitec Pivot Finance LLC^+		6.00			12/10/2019		30,000		31,966		31,779
LYB International Finance B.V.		5.25			7/15/2043		35,000		35,978		40,706
Monsanto Co.		4.40			7/15/2044		15,000		14,293		15,983
Mosaic Co. (The)		3.25			11/15/2022		30,000		29,997		29,738
Mosaic Co. (The)		4.05			11/15/2027		30,000		29,942		30,079
RPM International, Inc.		3.75			3/15/2027		15,000		14,980		15,178
Sherwin-Williams Co. (The)		4.50			6/1/2047		15,000		14,898		16,400
Total Chemicals							170,000		172,054		179,863
Commercial Banks — 3.0%*:
Associated Banc-Corp		2.75			11/15/2019		45,000		45,118		45,153
Associated Banc-Corp		4.25			1/15/2025		70,000		70,017		72,076
Bank of America Corp.^		3.00	#**		12/20/2023		129,000		129,064		129,331
Bank of America Corp.		4.18			11/25/2027		65,000		65,000		67,877
Bank of America Corp., 3M USD LIBOR + 1.814%		4.24	#		4/24/2038		40,000		40,000		43,381
Bank of America Corp. MTN		4.45			3/3/2026		25,000		25,000		26,685
Bank of America Corp. MTN		5.88			2/7/2042		25,000		28,594		33,104
Bank of Montreal+		3.80	#**		12/15/2032		40,000		40,000		39,545
Bank of Nova Scotia (The)+		4.50			12/16/2025		30,000		30,345		31,559
Bank of Nova Scotia (The)+		4.65	#**		10/12/2022		80,000		80,300		79,524
Citigroup, Inc.		3.88			3/26/2025		60,000		58,657		61,419
Citigroup, Inc.		4.60			3/9/2026		45,000		44,924		47,890
Fulton Financial Corp.		3.60			3/16/2022		35,000		34,885		35,139
Goldman Sachs Group, Inc. (The)		5.15			5/22/2045		70,000		67,806		81,175
Goldman Sachs Group, Inc. (The)		5.95			1/15/2027		32,000		35,460		37,382
JPMorgan Chase & Co.		3.63			12/1/2027		30,000		29,953		30,323

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Commercial Banks (Continued)
JPMorgan Chase & Co.		4.95	%		6/1/2045		40,000		$39,320		$46,490
SVB Financial Group		3.50			1/29/2025		40,000		39,239		40,096
Total Commercial Banks							901,000		903,682		948,149
Commercial Services — 0.3%*:
ERAC USA Finance LLC^		4.20			11/1/2046		70,000		69,477		68,558
ERAC USA Finance LLC^		5.63			3/15/2042		20,000		21,507		23,616
Total Commercial Services							90,000		90,984		92,174
Construction Materials — 0.4%*:
Owens Corning		4.20			12/1/2024		50,000		49,452		52,384
Standard Industries, Inc.^		5.00			2/15/2027		70,000		70,000		71,575
Total Construction Materials							120,000		119,452		123,959
Distribution/Wholesale — 0.1%*:
Ingram Micro, Inc.		5.45			12/15/2024		45,000		46,069		44,693
Diversified Financial Services — 4.4%*:
AerCap Ireland Capital DAC/AerCap Global Aviation Trust+		3.50			5/26/2022		150,000		149,864		152,229
AerCap Ireland Capital DAC/AerCap Global Aviation Trust+		3.50			1/15/2025		160,000		159,116		158,599
Affiliated Managers Group, Inc.		4.25			2/15/2024		50,000		51,163		52,720
Athene Global Funding^		4.00			1/25/2022		145,000		144,963		149,626
Brookfield Finance LLC+		4.00			4/1/2024		70,000		69,838		72,466
Brookfield Finance, Inc.+		4.25			6/2/2026		60,000		59,497		61,929
Discover Financial Services, Inc.		3.75			3/4/2025		30,000		29,041		30,198
Discover Financial Services, Inc.		4.10			2/9/2027		65,000		65,435		66,582
Discover Financial Services, Inc.		5.50	#**		10/30/2027		160,000		160,000		164,800
General Electric Co. MTN		6.88			1/10/2039		35,000		46,431		50,435
Genpact Luxembourg Sarl^		3.70			4/1/2022		65,000		65,135		64,615
International Lease Finance Corp.		6.25			5/15/2019		145,000		151,847		151,946
Lazard Group LLC		3.63			3/1/2027		30,000		29,883		29,938
Lazard Group LLC		4.25			11/14/2020		130,000		134,016		135,405
Legg Mason, Inc.		4.75			3/15/2026		5,000		4,998		5,357
Legg Mason, Inc.		5.63			1/15/2044		35,000		36,291		39,560
Neuberger Berman Group LLC/Neuberger Berman Finance Corp.^		4.50			3/15/2027		25,000		24,814		26,295
Total Diversified Financial Services							1,360,000		1,382,332		1,412,700
Electric — 1.1%*:
Appalachian Power Co.		6.70			8/15/2037		30,000		37,283		40,670
Cleveland Electric Illuminating Co. (The)^		3.50			4/1/2028		25,000		24,928		25,027
CMS Energy Corp.		3.88			3/1/2024		50,000		51,103		52,307
Duke Energy Corp.		3.75			9/1/2046		40,000		39,516		39,556

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Electric (Continued)
Indianapolis Power & Light Co.^		4.05	%		5/1/2046		45,000		$44,708		$46,805
IPALCO Enterprises, Inc.^		3.70			9/1/2024		25,000		24,976		24,977
Oncor Electric Delivery Co. LLC		5.25			9/30/2040		40,000		48,737		49,874
Puget Sound Energy, Inc.		4.30			5/20/2045		30,000		30,646		33,920
Southwestern Public Service Co.		6.00			10/1/2036		30,000		35,415		37,831
Total Electric							315,000		337,312		350,967
Electrical Components and Equipment — 0.1%*:
Legrand France SA+		8.50			2/15/2025		35,000		45,012		45,404
Electronics — 0.2%*:
Arrow Electronics, Inc.		3.25			9/8/2024		25,000		24,853		24,497
Arrow Electronics, Inc.		3.88			1/12/2028		25,000		24,898		24,925
Avnet, Inc.		3.75			12/1/2021		10,000		9,982		10,144
Tech Data Corp.		3.70			2/15/2022		20,000		19,975		20,062
Total Electronics							80,000		79,708		79,628
Environmental Control — 0.2%*:
Waste Management, Inc.		7.00			7/15/2028		50,000		63,532		65,752
Food — 0.1%*:
Kraft Heinz Foods Co.		3.00			6/1/2026		45,000		43,990		43,303
Forestry and Paper Products — 0.2%*:
Domtar Corp.		4.40			4/1/2022		50,000		50,590		52,602
Gas — 0.3%*:
NiSource Finance Corp.		4.80			2/15/2044		50,000		55,926		56,600
Spire, Inc.		4.70			8/15/2044		25,000		25,252		27,754
Total Gas							75,000		81,178		84,354
Healthcare-Products — 0.5%*:
Abbott Laboratories		3.75			11/30/2026		20,000		19,865		20,537
Abbott Laboratories		4.90			11/30/2046		15,000		14,885		17,198
Becton Dickinson and Co.		3.36			6/6/2024		40,000		40,000		40,112
Becton Dickinson and Co.		3.70			6/6/2027		40,000		40,000		40,308
Becton Dickinson and Co.		4.69			12/15/2044		25,000		25,939		27,337
Total Healthcare-Products							140,000		140,689		145,492
Healthcare-Services — 0.3%*:
Humana, Inc.		3.95			3/15/2027		40,000		39,954		41,415
Humana, Inc.		4.80			3/15/2047		20,000		19,981		22,551
UnitedHealth Group, Inc.		6.88			2/15/2038		25,000		34,252		36,261
Total Healthcare-Services							85,000		94,187		100,227

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Household Products/Wares — 0.0%*:
Church & Dwight Co., Inc.		3.15	%		8/1/2027		15,000		$14,985		$14,778
Housewares — 0.1%*:
Toro Co. (The)		7.80			6/15/2027		25,000		31,269		31,605
Insurance — 2.4%*:
Allstate Corp. (The), 3M USD LIBOR + 2.938%		5.75	#		8/15/2053		110,000		116,459		120,010
American International Group, Inc.		3.90			4/1/2026		20,000		19,991		20,740
American International Group, Inc.		4.50			7/16/2044		25,000		25,672		26,928
AmTrust Financial Services, Inc.		6.13			8/15/2023		75,000		74,558		73,078
Arch Capital Group US, Inc.		5.14			11/1/2043		25,000		25,303		29,161
AXIS Specialty Finance PLC		4.00			12/6/2027		40,000		39,913		40,180
Brown & Brown, Inc.		4.20			9/15/2024		58,000		58,319		60,799
CNA Financial Corp.		3.45			8/15/2027		25,000		24,945		24,637
Enstar Group Ltd.+		4.50			3/10/2022		20,000		20,000		20,369
Marsh & McLennan Cos., Inc.		5.88			8/1/2033		20,000		22,966		25,268
Reinsurance Group of America, Inc.		3.95			9/15/2026		40,000		39,998		40,881
Trinity Acquisition PLC		4.40			3/15/2026		55,000		56,502		58,167
Unum Group		3.88			11/5/2025		25,000		24,998		25,600
Unum Group		4.00			3/15/2024		30,000		30,689		31,240
Willis North America, Inc.		7.00			9/29/2019		50,000		53,056		53,623
XLIT Ltd.		4.45			3/31/2025		85,000		87,998		86,938
XLIT Ltd.		5.50			3/31/2045		30,000		28,792		31,875
Total Insurance							733,000		750,159		769,494
Internet — 0.4%*:
Amazon.com, Inc.^		4.05			8/22/2047		45,000		44,669		48,497
Expedia, Inc.		5.00			2/15/2026		40,000		39,845		42,761
Expedia, Inc.		7.46			8/15/2018		45,000		46,379		46,412
Total Internet							130,000		130,893		137,670
Investment Company Security — 0.7%*:
Ares Capital Corp.		3.50			2/10/2023		75,000		74,945		73,888
Ares Capital Corp.		3.88			1/15/2020		30,000		30,350		30,530
FS Investment Corp.		4.00			7/15/2019		30,000		30,245		30,356
TCP Capital Corp.		4.13			8/11/2022		75,000		74,728		73,819
Total Investment Company Security							210,000		210,268		208,593
Iron/Steel — 0.5%*:
Vale Overseas Ltd.+		5.88			6/10/2021		125,000		136,014		136,426
Vale Overseas Ltd.+		6.88			11/21/2036		15,000		14,988		18,375
Total Iron/Steel							140,000		151,002		154,801
IT Services — 0.4%*:
DXC Technology Co.		2.88			3/27/2020		15,000		14,965		15,073

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
IT Services (Continued)
DXC Technology Co.		4.75	%		4/15/2027		40,000		$39,960		$42,536
Leidos Holdings, Inc.		4.45			12/1/2020		75,000		76,282		77,813
Total IT Services							130,000		131,207		135,422
Media — 0.8%*:
Charter Communications Operating LLC/Charter Communications Operating Capital		4.46			7/23/2022		37,000		38,678		38,604
Charter Communications Operating LLC/Charter Communications Operating Capital		5.38			5/1/2047		50,000		50,291		51,268
Comcast Corp.		3.40			7/15/2046		20,000		19,830		18,923
Discovery Communications LLC		4.88			4/1/2043		25,000		22,809		24,827
Discovery Communications LLC		5.00			9/20/2037		25,000		24,975		25,902
Time Warner Cable LLC		4.50			9/15/2042		60,000		49,517		56,293
Time Warner Cable LLC		5.50			9/1/2041		35,000		32,697		36,480
Viacom, Inc.		4.25			9/1/2023		16,000		16,279		16,336
Total Media							268,000		255,076		268,633
Mining — 0.4%*:
Glencore Funding LLC^+		3.00			10/27/2022		20,000		19,918		19,805
Glencore Funding LLC^+		3.88			10/27/2027		25,000		24,790		24,669
Glencore Funding LLC+^		4.00			4/16/2025		50,000		49,939		50,502
Glencore Funding LLC+^		4.63			4/29/2024		25,000		26,040		26,395
Total Mining							120,000		120,687		121,371
Miscellaneous Manufacturing — 0.2%*:
Textron, Inc.		4.30			3/1/2024		50,000		51,086		52,875
Office/Business Equip — 0.4%*:
Pitney Bowes, Inc.		3.63			9/15/2020		20,000		19,957		19,800
Pitney Bowes, Inc.		3.63			10/1/2021		115,000		114,758		106,950
Total Office/Business Equip							135,000		134,715		126,750
Oil and Gas — 2.3%*:
Anadarko Petroleum Corp.		5.55			3/15/2026		20,000		19,947		22,440
Anadarko Petroleum Corp.		6.45			9/15/2036		50,000		58,532		61,241
Andeavor		3.80			4/1/2028		20,000		19,971		20,048
Andeavor		4.50			4/1/2048		15,000		14,786		15,170
Cenovus Energy, Inc.+		3.00			8/15/2022		30,000		29,690		29,813
Cenovus Energy, Inc.+		4.25			4/15/2027		50,000		49,837		49,879
Encana Corp.+		6.50			2/1/2038		40,000		46,409		50,478
EQT Corp.		3.90			10/1/2027		90,000		89,790		89,472
Helmerich & Payne International Drilling Co.		4.65			3/15/2025		25,000		26,469		26,316
Marathon Petroleum Corp.		6.50			3/1/2041		30,000		33,245		37,600
Nabors Industries, Inc.		5.50			1/15/2023		35,000		35,942		33,950
Newfield Exploration Co.		5.38			1/1/2026		140,000		139,881		148,050

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Oil and Gas (Continued)
PBF Holding Co. LLC/PBF Finance Corp.		7.00	%		11/15/2023		25,000		$25,531		$26,000
Petroleos Mexicanos+		3.50			1/30/2023		20,000		19,563		19,580
Petroleos Mexicanos+		4.63			9/21/2023		10,000		10,245		10,287
Petroleos Mexicanos+		5.50			1/21/2021		55,000		57,943		58,355
Petroleos Mexicanos+^		6.50			3/13/2027		15,000		14,874		16,395
Rowan Cos., Inc.		4.88			6/1/2022		8,000		7,988		7,540
Total Oil and Gas							678,000		700,643		722,614
Oil and Gas Services — 0.4%*:
National Oilwell Varco, Inc.		3.95			12/1/2042		37,000		30,512		32,634
SESI LLC		7.13			12/15/2021		32,000		33,267		32,800
Weatherford International Ltd.		5.95			4/15/2042		30,000		25,222		23,400
Weatherford International Ltd.		6.00			3/15/2018		50,000		50,233		50,060
Total Oil and Gas Services							149,000		139,234		138,894
Packaging and Containers — 0.2%*:
Brambles USA, Inc.+^		4.13			10/23/2025		10,000		9,980		10,371
Brambles USA, Inc.+^		5.35			4/1/2020		50,000		52,604		52,612
Total Packaging and Containers							60,000		62,584		62,983
Pharmaceuticals — 1.6%*:
AbbVie, Inc.		4.70			5/14/2045		30,000		29,333		33,638
Allergan, Inc.		2.80			3/15/2023		50,000		47,253		49,459
AstraZeneca PLC+		6.45			9/15/2037		35,000		44,482		47,556
Express Scripts Holding Co.		4.50			2/25/2026		30,000		30,888		31,836
Express Scripts Holding Co.		4.80			7/15/2046		30,000		30,186		31,914
McKesson Corp.		6.00			3/1/2041		50,000		55,717		61,077
Mylan NV		5.25			6/15/2046		40,000		39,994		43,829
Mylan, Inc.		2.55			3/28/2019		60,000		59,861		60,001
Shire Acquisitions Investments Ireland DAC		2.88			9/23/2023		60,000		59,993		58,985
Teva Pharmaceutical Finance Netherlands III B.V.+		1.70			7/19/2019		25,000		24,515		24,289
Teva Pharmaceutical Finance Netherlands III B.V.+		2.20			7/21/2021		74,000		70,428		67,597
Teva Pharmaceutical Finance Netherlands III B.V.+		4.10			10/1/2046		10,000		9,919		7,615
Total Pharmaceuticals							494,000		502,569		517,796
Pipelines — 2.9%*:
Andeavor Logistics LP		6.88	#**		2/15/2023		40,000		40,000		40,608
Andeavor Logistics LP/Tesoro Logistics Finance Corp.		3.50			12/1/2022		10,000		9,970		9,981
Energy Transfer LP		4.20			4/15/2027		25,000		24,951		24,870
Energy Transfer LP		4.75			1/15/2026		30,000		29,844		31,124
Energy Transfer LP		6.13			12/15/2045		25,000		27,432		27,148
Energy Transfer Partners LP		6.25	#**		2/15/2023		60,000		60,000		58,275
EnLink Midstream Partners LP		2.70			4/1/2019		30,000		30,025		29,973
EnLink Midstream Partners LP		4.15			6/1/2025		25,000		25,099		25,261

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Pipelines (Continued)
EnLink Midstream Partners LP		4.85	%		7/15/2026		19,000		$19,403		$19,910
Enterprise Products Operating LLC		5.95			2/1/2041		25,000		26,671		30,856
Kinder Morgan Energy Partners LP MTN		6.95			1/15/2038		30,000		31,968		37,300
Kinder Morgan, Inc.		3.05			12/1/2019		35,000		35,061		35,307
Kinder Morgan, Inc.^		5.63			11/15/2023		50,000		55,100		55,205
MPLX LP		4.00			2/15/2025		77,000		75,715		78,573
MPLX LP		4.88			6/1/2025		23,000		23,839		24,650
MPLX LP		5.20			3/1/2047		5,000		4,966		5,487
MPLX LP		5.50			2/15/2023		20,000		20,766		20,582
Phillips 66 Partners LP		3.75			3/1/2028		20,000		19,925		20,009
Phillips 66 Partners LP		4.68			2/15/2045		2,000		2,000		2,054
Phillips 66 Partners LP		4.90			10/1/2046		15,000		14,897		15,869
Plains All American Pipeline LP/PAA Finance Corp.		4.50			12/15/2026		80,000		80,015		81,096
Plains All American Pipeline LP/PAA Finance Corp.		4.70			6/15/2044		40,000		36,188		37,394
Sabine Pass Liquefaction LLC		4.20			3/15/2028		75,000		74,932		75,884
Sabine Pass Liquefaction LLC		5.63			3/1/2025		25,000		27,475		27,575
Sunoco Logistics Partners Operations LP		4.00			10/1/2027		20,000		19,847		19,611
Sunoco Logistics Partners Operations LP		5.30			4/1/2044		25,000		24,667		24,672
Western Gas Partners LP		4.00			7/1/2022		75,000		76,928		76,513
Total Pipelines							906,000		917,684		935,787
Real Estate Investment Trusts — 1.1%*:
Crown Castle International Corp.		3.20			9/1/2024		40,000		39,894		39,585
Crown Castle International Corp.		4.00			3/1/2027		20,000		19,922		20,448
Crown Castle International Corp.		4.75			5/15/2047		10,000		9,921		10,527
CubeSmart LP		3.13			9/1/2026		45,000		44,803		42,899
Healthcare Trust of America Holdings LP		3.75			7/1/2027		35,000		34,830		34,858
Host Hotels & Resorts LP		3.88			4/1/2024		40,000		39,847		40,696
Host Hotels & Resorts LP		4.75			3/1/2023		50,000		51,806		53,189
Kimco Realty Corp.		3.30			2/1/2025		25,000		24,963		24,805
Mid-America Apartments LP		3.60			6/1/2027		25,000		24,901		25,043
UDR, Inc. MTN		3.50			7/1/2027		35,000		34,921		34,992
Weingarten Realty Investors		3.25			8/15/2026		10,000		9,926		9,598
Total REITS							335,000		335,734		336,640
Retail — 0.9%*:
CVS Pass-Through Trust^		5.93			1/10/2034		29,509		33,559		33,638
El Puerto de Liverpool SAB de CV+^		3.95			10/2/2024		200,000		199,233		201,000
Wal-Mart Stores, Inc.		5.63			4/1/2040		30,000		35,462		40,531
Total Retail							259,509		268,254		275,169
Semiconductors — 0.1%*:
QUALCOMM, Inc.		4.30			5/20/2047		35,000		34,995		35,259

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Software — 0.1%*:
Oracle Corp.		5.38	%		7/15/2040		35,000		$38,907		$44,252
Telecommunications — 1.3%*:
AT&T, Inc.		3.40			8/14/2024		50,000		49,920		50,257
AT&T, Inc.		3.80			3/1/2024		40,000		39,977		40,964
AT&T, Inc.		3.90			8/14/2027		45,000		44,925		45,301
AT&T, Inc.		4.75			5/15/2046		45,000		42,280		44,012
AT&T, Inc.		4.90			8/14/2037		25,000		25,159		25,315
AT&T, Inc.		5.25			3/1/2037		30,000		29,862		31,729
Telefonaktiebolaget LM Ericsson+		4.13			5/15/2022		55,000		56,590		55,386
Verizon Communications, Inc.		4.13			3/16/2027		30,000		30,679		31,281
Verizon Communications, Inc.		4.86			8/21/2046		25,000		25,430		26,041
Verizon Communications, Inc.		6.55			9/15/2043		56,000		69,713		73,103
Total Telecommunications							401,000		414,535		423,389
Venture Capital — 0.5%*:
Hercules Capital, Inc.		4.63			10/23/2022		150,000		149,202		152,492
Total Corporate Bonds							9,578,509		9,791,741		10,052,661
Foreign Government — 0.8%*:
Colombia — 0.4%*:
Colombia Government International Bond+		6.13	%		1/18/2041		100,000		$115,476		$120,500
Mexico — 0.4%*:
Mexico Government International Bond+		4.75			3/8/2044		68,000		69,476		68,425
Mexico Government International Bond+		5.55			1/21/2045		60,000		64,584		67,575
Total Mexico							128,000		134,060		136,000
Total Foreign Government							228,000		249,536		256,500
Mortgage-Backed Securities — 0.6%*:
GS Mortgage Securities Trust 2015-GC32 B		4.40	#@		7/10/2048		100,000		102,814		104,352
JPMorgan Mortgage Trust 2017-1 A11^		3.50	#@		1/25/2047		92,726		92,299		93,279
Total Mortgage-Backed Securities							192,726		195,113		197,631
U.S. Treasury & Government Agencies — 28.2%*:
Federal Home Loan Mortgage Corp.		3.50			7/1/2046		52,031		54,984		53,744
Federal Home Loan Mortgage Corp.		3.50			11/1/2046		71,648		75,644		73,937
Federal Home Loan Mortgage Corp.		3.50			11/1/2047		99,573		102,585		102,410
Federal Home Loan Mortgage Corp.		3.50			12/1/2047		799,087		821,121		821,852
Federal Home Loan Mortgage Corp.		4.00			4/1/2047		72,001		76,672		76,094
Federal Home Loan Mortgage Corp.		4.00			12/1/2047		839,669		882,480		878,150
Federal Home Loan Mortgage Corp.		4.50			8/1/2040		15,431		16,921		16,639
Federal Home Loan Mortgage Corp.		4.50			10/1/2040		22,332		24,369		24,032
Federal Home Loan Mortgage Corp.		4.50			10/1/2041		26,568		28,989		28,589
Federal Home Loan Mortgage Corp.		4.50			9/1/2043		17,959		19,658		19,367
Federal Home Loan Mortgage Corp.		4.50			5/1/2047		23,894		25,726		25,400

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
U.S. Treasury & Government Agencies (Continued)
Federal Home Loan Mortgage Corp.		4.50	%		6/1/2047		285,400		$307,358		$303,363
Federal Home Loan Mortgage Corp. TBA		3.50			1/1/2048		100,000		102,680		102,693
Federal National Mortgage Association		3.50			12/1/2028		46,798		49,546		48,455
Federal National Mortgage Association		3.50			9/1/2047		297,863		306,520		306,009
Federal National Mortgage Association		3.50			11/1/2047		274,436		283,204		281,942
Federal National Mortgage Association		3.50			12/1/2047		49,841		51,305		51,204
Federal National Mortgage Association		4.00			8/1/2047		147,022		154,892		153,892
Federal National Mortgage Association		4.00			10/1/2047		124,600		131,449		130,428
Federal National Mortgage Association		4.00			5/1/2056		176,497		184,900		185,545
Federal National Mortgage Association		4.00			6/1/2056		156,480		165,897		164,483
Federal National Mortgage Association		4.50			3/1/2041		17,300		18,982		18,672
Federal National Mortgage Association		4.50			8/1/2047		122,945		132,590		130,961
Federal National Mortgage Association		5.00			6/1/2040		11,114		12,342		12,136
Federal National Mortgage Association		5.00			7/1/2040		81,968		90,638		88,474
Federal National Mortgage Association		5.00			2/1/2044		32,402		35,936		35,035
Federal National Mortgage Association TBA		3.50			1/1/2048		700,000		718,141		718,703
Federal National Mortgage Association TBA		4.00			1/1/2048		135,000		141,328		141,175
Government National Mortgage Association		3.50			9/20/2047		74,657		77,641		77,256
Government National Mortgage Association		3.50			10/20/2047		422,944		440,885		437,658
Government National Mortgage Association		3.50			11/20/2047		99,840		103,831		103,544
Government National Mortgage Association		3.50			12/15/2047		25,000		25,913		25,894
Government National Mortgage Association		3.50			12/20/2047		50,000		51,905		51,738
Government National Mortgage Association		4.00			10/20/2047		24,932		26,407		26,201
Government National Mortgage Association TBA		3.50			1/1/2048		525,000		542,391		542,719
Government National Mortgage Association TBA		4.00			1/1/2048		350,000		365,148		364,848
U.S. Treasury Bond		2.50			5/15/2046		815,000		743,702		775,269
U.S. Treasury Bond1		3.50			2/15/2039		355,000		395,412		405,463
U.S. Treasury Notes		1.63			11/30/2020		420,000		417,085		415,784
U.S. Treasury Notes		1.63			8/31/2022		520,000		510,732		507,142
U.S. Treasury Notes		2.25			8/15/2027		300,000		296,545		295,781
Total U.S. Treasury & Government Agencies							8,782,232		9,014,454		9,022,681
Total Fixed Income							27,600,479		27,925,123		28,292,895
						SHARES		COST		FAIR VALUE
Mutual Fund — 8.3%*:
Barings U.S. High Yield Fund							260,279		2,533,202		2,639,234

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	COUNTERPARTY	STRIKE PRICE		EXPIRATION DATE		CONTRACTS		NOTIONAL		COST		UNREALIZED VALUE			FAIR VALUE
Purchased Options — 0.6%*:
Call Option Purchased — 0.2%*:
OTC—BCM	Swaption JPMorgan Chase Bank N.A.	$	2.44		12/13/2032		1,270,000		1,270,000		63,722		(1,988	)		61,734
Put Option Purchased — 0.4%*:
OTC—BCM Swaption	JPMorgan Chase Bank N.A.		2.94		12/13/2032		2,580,000		2,580,000		129,451		(7,517	)		121,934

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Short-Term Investments — 14.2%*:
Bank Deposit — 1.1%*:
State Street Bank & Trust Co. Euro Time Deposit		0.12	%		1/2/2018		362,022		$362,022		$362,022
Commercial Paper — 13.1%*:
Auto Manufacturers — 0.8%*:
Ford Motor Credit Co. LLC		Zero Coupon			2/14/2018		250,000		249,526		249,526
Diversified Financial Services — 0.8%*:
NASDAQ, Inc.		Zero Coupon			1/24/2018		250,000		249,741		249,741
Electrical Components and Equipment — 0.7%*:
Molex Electronics Technologies		Zero Coupon			3/13/2018		250,000		249,014		249,014
IT Services — 1.5%*:
Hewlett Packard Enterprise Co.		Zero Coupon			1/3/2018		250,000		249,978		249,978
HP, Inc.		Zero Coupon			1/8/2018		250,000		249,925		249,925
Total IT Services							500,000		499,903		499,903
Lodging — 0.8%*:
Carnival Corp.		Zero Coupon			1/2/2018		250,000		249,989		249,989
Mining — 0.8%*:
Glencore Funding LLC+		Zero Coupon			1/23/2018		250,000		249,740		249,740
Oil and Gas — 0.8%*:
Suncor Energy, Inc.+		Zero Coupon			1/18/2018		250,000		249,821		249,821
Pipelines — 0.8%*:
Spectra Energy Partners LP		Zero Coupon			1/25/2018		250,000		249,697		249,697
Software — 0.8%*:
Thomson Reuters Corp.+		Zero Coupon			2/13/2018		250,000		249,516		249,516
Transportation — 0.8%*:
FedEx Corp.		Zero Coupon			1/5/2018		250,000		249,959		249,959

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Commercial Paper (Continued)
Utilities — 4.5%*:
Entergy Corp.		Zero Coupon	%		1/11/2018		250,000		$249,895		$249,895
Florida Power & Light Co.		Zero Coupon			1/23/2018		250,000		249,771		249,771
Public Service Enterprise Group, Inc.		Zero Coupon			1/22/2018		250,000		249,774		249,774
Public Service Enterprise Group, Inc.		Zero Coupon			2/20/2018		700,000		697,958		697,958
Total Utilities							1,450,000		1,447,398		1,447,398
Total Commercial Paper							4,200,000		4,194,304		4,194,304
Total Short-Term Investments							4,562,022		4,556,326		4,556,326
Total Investments							36,272,780		35,207,824		35,672,123
Other assets and liabilities – (11.5%)*											(3,687,931	)
Net Assets – 100.0%											$31,984,192

MTN Medium Term Note

OTC Over the Counter

TBA To Be Announced: Securities purchased on a forward commitment basis with an approximate principal amount and maturity date. The actual principal amount and maturity date will be determined upon settlement.

@ Effective interest rate for this security is the coupon rate at issue based on the underlying loans.

‡‡ 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	91.2%
Canada	2.8%
Mexico	1.3%
Switzerland	1.0%
Other (Individually less than 1%)	3.7%
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.

¤ For fair value measurement disclosure purposes, security is categorized as Level 3 (See Note 2).

# Variable rate security. The interest rate shown is the rate in effect at December 31, 2017.

** Variable Rate is Fixed to Float: Rate remains fixed until designated future date.

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

Affiliate Table

	NUMBER OF SHARES HELD AT 6/30/17		VALUE AT 6/30/17		COST OF PURCHASES		PROCEEDS FROM SHARES SOLD		REALIZED GAIN (LOSS)		CHANGE IN UNREALIZED APPRECIATION/ DEPRECIATION			NUMBER OF SHARES HELD AT 12/31/17		VALUE AT 12/31/17		DIVIDEND INCOME		CAPITAL GAINS DISTRIBUTIONS
Barings U.S. High Yield Fund		245,051	$	2,595,086	$	157,494	$	–	$	–	$	(113,346	)		260,279	$	2,639,234	$	157,494	$	–

A summary of outstanding derivatives at December 31, 2017 is as follows:

Cross Currency Forward Foreign Currency Exchange Contracts

EXPIRATION DATE	DELIVER/ RECEIVE	COUNTERPARTY	CONTRACT AMOUNT PURCHASED		CONTRACT AMOUNT SOLD		NET UNREALIZED APPRECIATION (DEPRECIATION)
3/6/18	CZK/EUR	Bank of America N.A.		19,000		487,920	$	(103	)
3/6/18	CZK/EUR	JPMorgan Chase Bank N.A.		2,000		52,048		(43	)
3/6/18	CZK/EUR	BNP Paribas S.A.		2,000		52,282		(54	)
3/6/18	EUR/CZK	Citibank N.A.		25,966		1,000		19
3/6/18	EUR/CZK	BNP Paribas S.A.		345,085		13,000		600
3/6/18	EUR/CZK	Bank of America N.A.		534,130		20,000		1,075
1/16/18	EUR/HRK	Bank of America N.A.		90,337		12,000		188
1/16/18	EUR/HUF	Goldman Sachs & Co.		7,775,000		25,058		(45	)
1/16/18	EUR/PLN	JPMorgan Chase Bank N.A.		133,240		30,869		1,211
Net unrealized appreciation on cross currency forward foreign currency exchange contracts							$	2,848

Forward Foreign Currency Exchange Contracts to Buy

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
1/16/18	JPMorgan Chase Bank N.A.		CHF	16,886		17,343		17,000	$	343
1/9/18	Bank of America N.A.		COP	41,837,000		14,011		13,679		332
1/16/18	Bank of America N.A.		EGP	135,759		7,604		7,500		104
1/16/18	Goldman Sachs & Co.		EGP	135,759		7,604		7,503		101
1/16/18	Goldman Sachs & Co.		EUR	61,982		74,425		73,572		853
1/16/18	JPMorgan Chase Bank N.A.		GHS	66,600		14,633		14,899		(266	)
1/23/18	Goldman Sachs & Co.		JPY	4,014,661		35,662		35,903		(241	)
1/23/18	JPMorgan Chase Bank N.A.		KZT	12,337,000		36,943		36,408		535
1/9/18	Goldman Sachs & Co.		MXN	1,309,072		66,502		70,757		(4,255	)
1/9/18	JPMorgan Chase Bank N.A.		MXN	96,796		4,917		5,000		(83	)
1/23/18	Goldman Sachs & Co.		MYR	305,768		75,197		72,673		2,524
3/6/18	BNP Paribas S.A.		NGN	5,535,000		16,151		15,000		1,151
1/23/18	JPMorgan Chase Bank N.A.		NZD	15,681		11,110		10,999		111

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
1/23/18	Goldman Sachs & Co.		NZD	9,995		7,082		6,828		254
1/23/18	Goldman Sachs & Co.		PHP	905,256		18,127		17,439		688
1/16/18	Goldman Sachs & Co.		RUB	844,829		14,639		14,000		639
1/16/18	Goldman Sachs & Co.		SEK	116,584		14,223		14,000		223
1/23/18	Goldman Sachs & Co.		SGD	20,339		15,212		15,002		210
1/16/18	Bank of America N.A.		TRY	129,909		34,128		34,483		(355	)
1/16/18	Goldman Sachs & Co.		TRY	43,259		11,364		11,000		364
Net unrealized appreciation on forward foreign currency exchange contracts to buy									$	3,232

Forward Foreign Currency Exchange Contracts to Sell

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
1/23/18	Goldman Sachs & Co.		AUD	19,161		14,950		14,517	$	(433	)
1/16/18	Goldman Sachs & Co.		CHF	35,311		36,267		36,538		271
1/9/18	Bank of America N.A.		CLP	4,592,543		7,463		7,204		(259	)
1/9/18	Goldman Sachs & Co.		CLP	4,592,543		7,463		7,275		(188	)
1/23/18	Bank of America N.A.		CNH	93,523		14,344		14,000		(344	)
1/9/18	JPMorgan Chase Bank N.A.		COP	41,837,000		14,011		14,019		8
1/16/18	Bank of America N.A.		EUR	25,295		30,373		30,000		(373	)
1/16/18	JPMorgan Chase Bank N.A.		EUR	38,318		46,010		45,295		(715	)
1/16/18	Bank of America N.A.		ILS	77,916		22,403		22,375		(28	)
1/23/18	JPMorgan Chase Bank N.A.		INR	964,901		15,098		14,691		(407	)
1/23/18	Bank of America N.A.		INR	454,160		7,106		6,999		(107	)
1/23/18	Bank of America N.A.		KRW	15,363,600		14,399		13,999		(400	)
1/23/18	Goldman Sachs & Co.		MYR	155,534		38,250		38,000		(250	)
1/23/18	Goldman Sachs & Co.		NZD	25,676		18,192		18,351		159
1/23/18	JPMorgan Chase Bank N.A.		NZD	20,459		14,496		14,000		(496	)
1/23/18	Bank of America N.A.		PHP	905,256		18,127		17,366		(761	)
1/23/18	Goldman Sachs & Co.		SGD	20,339		15,212		14,931		(281	)
Net unrealized depreciation on forward foreign currency exchange contracts to sell									$	(4,604	)

Currency Legend

AUD	–	Australian Dollar
CHF	–	Swiss Franc
CLP	–	Chilean Peso
CNH	–	Chinese Yuan Renminbi
COP	–	Colombian Peso
CZK	–	Czech Koruna
EGP	–	Egyptian Pound
EUR	–	Euro
GHS	–	Ghana Cedi

See accompanying Notes to the Financial Statements.

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December 31, 2017 (Unaudited)

HRK	–	Croatian Kuna
HUF	–	Hungarian Forint
ILS	–	Israeli Shekel
INR	–	Indian Rupee
JPY	–	Japanese Yen
KRW	–	South Korean Won
KZT	–	Kazakhstani Tenge
MXN	–	Mexican Peso
MYR	–	Malaysian Ringgit
NGN	–	Nigeria Naira
NZD	–	New Zealand Dollar
PHP	–	Philippines Peso
PLN	–	Polish Zloty
RON	–	Romanian New Leu
RUB	–	Russian Ruble
SEK	–	Swedish Krona
SGD	–	Singapore Dollar
TRY	–	Turkish New Lira

Futures

TYPE	EXPIRATION DATE	CONTRACTS		NOTIONAL AMOUNT		POSITION		FAIR VALUE		UNREALIZED APPRECIATION (DEPRECIATION)
Long Futures
U.S. 2-Year Treasury Note	03/29/18		15		3,219,265		Long	$	3,211,641	$	(7,624	)
U.S. 5-Year Treasury Note	03/29/18		15		1,750,904		Long		1,742,461		(8,443	)
U.S. Ultra Bond	03/20/18		4		664,545		Long		670,625		6,080
Total Long Futures										$	(9,987	)

OTC Credit Default Swaps – Sell Protection ⁽¹⁾⁽²⁾

REFERENCE OBLIGATION	FIXED- DEAL RECEIVED RATE	PAYMENT FREQUENCY		MATURITY DATE		COUNTERPARTY	ORIGINAL NOTIONAL AMOUNT		CURRENT NOTIONAL AMOUNT (3)		UPFRONT PREMIUMS PAID/ (RECEIVED)			FAIR VALUE (4)			UNREALIZED DEPRECIATION
CMBX.NA.BBB-.6†	3.00%		1M		11/17/2045	JPMorgan Chase Bank N.A.		60,000		60,000	$	137		$	(8,779	)	$	(8,916	)
CMBX.NA.BBB-.6†	3.00%		1M		5/11/2063	Goldman Sachs & Co.		70,000		70,000		(5,223	)		(10,242	)		(5,019	)
Total OTC Credit Default Swaps												(5,086	)		(19,021	)		(13,935	)

See accompanying Notes to the Financial Statements.

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December 31, 2017 (Unaudited)

(1) If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

(2) Represents an investment grade index of single name credit default swaps (CDS). All of the companies underlying the single name CDS within the index are rated investment grade or higher. Rating represents a weighted average of the credit ratings of all the companies underlying the single name CDS within the index.

(3) The maximum potential amount the Portfolio could be required to make as a seller of credit protection or receive as a buyer of credit event as defined under the terms of that particular swap agreement.

(4) The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the expected amount paid or received for the credit derivative if the amount of the swap agreement was closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreements.

† Payment is based on a percentage of the index. Reference entities are a number of individual issuers comprising the index.

Abbreviation Legend

OTC – Over the Counter

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 98.8%*:
Corporate Bonds — 30.9%*:
Chemicals — 3.5%*:
Chandra Asri Petrochemical Tbk PT^+		4.95	%		11/8/2024		200,000		$198,283		$196,500
Grupo Idesa SA de CV+^		7.88			12/18/2020		200,000		183,815		188,000
Total Chemicals							400,000		382,098		384,500
Commercial Banks — 5.6%*:
Banco Mercantil del Norte SA, 10 year CMT + 5.353%^+		7.63	#		10/6/2066		200,000		219,199		219,000
Itau Unibanco Holding SA^+		6.13	#**		6/12/2066		200,000		200,000		199,937
Turkiye Is Bankasi, 5 year USD Swap + 5.117%+		7.00	#		6/29/2028		200,000		200,000		200,000
Total Commercial Banks							600,000		619,199		618,937
Electric — 3.4%*:
Abengoa Transmision Sur SA+^		6.88			4/30/2043		198,740		203,589		219,608
Capex SA+^		6.88			5/15/2024		150,000		150,000		156,750
Total Electric							348,740		353,589		376,358
Engineering&Construction — 1.8%*:
Mexico City Airport Trust+^		5.50			7/31/2047		200,000		198,801		197,500
Gas — 2.2%*:
Fermaca Enterprises S de RL de CV+^		6.38			3/30/2038		232,000		226,406		249,516
Media — 3.8%*:
Altice Financing SA+^		6.63			2/15/2023		200,000		197,170		209,420
VTR Finance BV+^		6.88			1/15/2024		200,000		210,090		211,000
Total Media							400,000		407,260		420,420
Mining — 1.8%*:
Petra Diamonds US Treasury plc+^		7.25			5/1/2022		200,000		198,575		202,750
Oil and Gas — 3.5%*:
Petrobras Global Finance BV+		4.75			1/14/2025		225,000		240,219		297,637
Petrobras Global Finance BV+		5.63			5/20/2043		100,000		75,865		89,375
Total Oil and Gas							325,000		316,084		387,012
Retail — 1.8%*:
Eurotorg LLC Via Bonitron DAC^+		8.75			10/30/2022		200,000		200,000		202,280
Telecommunications — 3.5%*:
Digicel Group Ltd.^+		8.25			9/30/2020		200,000		198,587		196,758
Digicel Ltd.+^		6.75			3/1/2023		200,000		190,127		196,632
Total Telecommunications							400,000		388,714		393,390
Total Corporate Bonds							3,305,740		3,290,726		3,432,663

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Foreign Government — 67.9%*:
Argentina — 6.5%*:
Argentine Bonos del Tesoro+		15.50	%		10/17/2026		1,800,000		$108,526		$96,664
Argentine Republic Government International Bond+		5.25			1/15/2028		200,000		232,396		249,559
Province of Santa Fe+^		6.90			11/1/2027		150,000		150,000		159,000
Provincia de Cordoba+^		7.13			6/10/2021		200,000		200,000		215,750
Total Argentina							2,350,000		690,922		720,973
Armenia — 2.0%*:
Republic of Armenia International Bond+^		7.15			3/26/2025		200,000		211,100		228,250
Brazil — 8.3%*:
Brazil Notas do Tesouro Nacional Serie B+		6.00			8/15/2050		930,000		884,653		919,185
Colombia — 4.3%*:
Colombian TES+		4.75			4/4/2035		666,022,111		249,708		257,258
Colombian TES+		7.75			9/18/2030		605,000,000		209,564		220,104
Total Colombia							1,271,022,111		459,272		477,362
Croatia — 2.2%*:
Croatia Government International Bond+		2.75			1/27/2030		200,000		230,599		243,269
El Salvador — 1.9%*:
El Salvador Government International Bond+^		7.38			12/1/2019		200,000		203,495		211,689
Ghana — 4.3%*:
Ghana Government Bond+		18.25			7/25/2022		408,000		92,798		93,929
Ghana Government Bond+		21.50			3/9/2020		480,000		114,450		114,446
Ghana Government International Bond+^		10.75			10/14/2030		200,000		212,982		275,000
Total Ghana							1,088,000		420,230		483,375
Indonesia — 2.3%*:
Indonesia Treasury Bond+		8.38			3/15/2034		3,140,000,000		215,246		258,340
Ivory Coast — 1.2%*:
Ivory Coast Government International Bond+^		5.13			6/15/2025		100,000		112,165		130,784
Malaysia — 3.4%*:
Malaysia Government Bond+		4.13			4/15/2032		1,610,000		361,499		380,111
Mexico — 10.5%*:
Mexican Bonos+		7.75			11/13/2042		14,200,000		811,130		713,675
Mexico Government International Bond+		5.75			10/12/2110		430,000		413,504		453,543
Total Mexico							14,630,000		1,224,634		1,167,218

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Foreign Government (Continued)
Nigeria — 1.3%*:
Nigeria Treasury Bill+		Zero Coupon			6/14/2018		27,284,000		$70,179		$70,711
Nigeria Treasury Bill+		Zero Coupon			6/21/2018		27,284,000		69,556		70,504
Total Nigeria							54,568,000		139,735		141,215
Peru — 4.0%*:
Peru Government Bond+		6.85	%		2/12/2042		495,000		154,466		165,940
Peru Government Bond+		6.90			8/12/2037		315,000		103,292		108,931
Peru Government Bond+		6.95			8/12/2031		480,000		160,555		168,320
Total Peru							1,290,000		418,313		443,191
Russia — 4.9%*:
Russian Federal Bond — OFZ+		7.00			1/25/2023		14,000,000		225,840		243,115
Russian Federal Bond — OFZ+		8.50			9/17/2031		16,000,000		282,004		300,325
Total Russia							30,000,000		507,844		543,440
South Africa — 9.0%*:
South Africa Government Bond+		6.50			2/28/2041		8,200,000		409,925		466,738
South Africa Government Bond+		8.75			2/28/2048		7,300,000		464,626		532,221
Total South Africa							15,500,000		874,551		998,959
Ukrainian — 1.8%*:
Ukraine Government International Bond+^		7.38			9/25/2032		200,000		200,000		196,750
Total Foreign Government							4,533,888,111		7,154,258		7,544,111
Total Fixed Income							4,537,193,851		10,444,984		10,976,774
Short-Term Investments — 1.6%*:
Bank Deposit — 1.6%*:
State Street Bank & Trust Co. Euro Time Deposit		0.12			1/2/2018		174,788		174,788		174,788
Total Investments							4,537,368,639		10,619,772		11,151,562
Other assets and liabilities – (0.4%)*											(48,575	)
Net Assets – 100.0%											$11,102,987

‡‡ 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.

** Variable Rate is Fixed to Float: Rate remains fixed until designated future date.

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

Distributions of investments by country of risk (excluding temporary cash investments) as a percentage of total investments in securities, is as follows:

Mexico	18.4%
Brazil	11.9%
South Africa	11.0%
Argentina	8.0%
Peru	6.0%
Russia	5.0%
Ghana	4.4%
Colombia	4.4%
Indonesia	4.1%
Jamaica	3.6%
Malaysia	3.5%
Croatia	2.2%
Armenia	2.1%
El Salvador	1.9%
Chile	1.9%
Portugal	1.9%
Belarus	1.8%
Turkey	1.8%
Belize	1.8%
Ukrainian	1.8%
Nigeria	1.3%
Ivory Coast	1.2%
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.

# Variable rate security. The interest rate shown is the rate in effect at December 31, 2017.

A summary of outstanding derivatives at December 31, 2017 is as follows:

Cross Currency Forward Foreign Currency Exchange Contracts

EXPIRATION DATE	DELIVER/ RECEIVE	COUNTERPARTY	CONTRACT AMOUNT PURCHASED		CONTRACT AMOUNT SOLD		NET UNREALIZED APPRECIATION (DEPRECIATION)
3/6/18	CZK/EUR	JPMorgan Chase Bank N.A.		35,111		919,359	$	(1,025	)
3/6/18	CZK/EUR	Bank of America N.A.		303,000		7,781,040		(1,641	)
3/6/18	EUR/CZK	Citibank N.A.		649,149		25,000		472
3/6/18	EUR/CZK	BNP Paribas S.A.		5,096,640		192,000		8,862
3/6/18	EUR/CZK	Bank of America N.A.		7,798,298		292,000		15,700
1/16/18	EUR/HRK	Bank of America N.A.		1,460,451		194,000		3,036
1/16/18	EUR/HUF	Goldman Sachs & Co.		2,400,861		7,738		(14	)
1/16/18	EUR/PLN	JPMorgan Chase Bank N.A.		2,100,940		486,746		19,095
1/16/18	EUR/RSD	Citibank N.A.		22,552,200		187,536		(1,620	)
Net unrealized appreciation on cross currency forward foreign currency exchange contracts							$	42,865

See accompanying Notes to the Financial Statements.

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December 31, 2017 (Unaudited)

Forward Foreign Currency Exchange Contracts to Buy

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
6/15/18	JPMorgan Chase Bank N.A.		ARS	9,375,000		462,072		500,000	$	(37,928	)
1/9/18	JPMorgan Chase Bank N.A.		BRL	148,050		44,602		45,000		(398	)
1/16/18	JPMorgan Chase Bank N.A.		CHF	267,194		274,428		269,000		5,428
1/9/18	Bank of America N.A.		COP	672,892,000		225,341		220,000		5,341
1/16/18	Bank of America N.A.		EGP	2,009,313		112,539		110,993		1,546
1/16/18	Goldman Sachs & Co.		EGP	2,009,313		112,539		111,042		1,497
1/16/18	Goldman Sachs & Co.		EUR	398,403		478,387		472,901		5,486
1/16/18	Citibank N.A.		EUR	159,993		192,113		190,670		1,443
1/16/18	BNP Paribas S.A.		EUR	117,660		141,281		139,000		2,281
1/16/18	Goldman Sachs & Co.		HUF	127,109,790		491,167		486,155		5,012
1/23/18	Goldman Sachs & Co.		JPY	64,835,617		575,932		579,828		(3,896	)
1/23/18	JPMorgan Chase Bank N.A.		KZT	195,667,500		585,929		577,446		8,483
1/9/18	Goldman Sachs & Co.		MXN	5,167,371		262,506		279,304		(16,798	)
1/9/18	JPMorgan Chase Bank N.A.		MXN	2,400,543		121,949		124,000		(2,051	)
1/23/18	Goldman Sachs & Co.		MYR	3,359,686		826,237		798,499		27,738
1/23/18	JPMorgan Chase Bank N.A.		NZD	321,747		227,967		225,700		2,267
1/23/18	Goldman Sachs & Co.		NZD	159,205		112,801		108,761		4,040
1/9/18	Goldman Sachs & Co.		PEN	149,270		46,022		45,606		416
1/23/18	Goldman Sachs & Co.		PHP	14,774,240		295,840		284,613		11,227
1/16/18	Goldman Sachs & Co.		RUB	678,080		11,750		11,385		365
1/16/18	Goldman Sachs & Co.		SEK	1,915,305		233,664		230,000		3,664
1/23/18	Goldman Sachs & Co.		SGD	298,300		223,107		220,034		3,073
1/16/18	Bank of America N.A.		TRY	2,059,950		541,166		546,798		(5,632	)
1/16/18	Goldman Sachs & Co.		TRY	641,019		168,401		163,000		5,401
1/16/18	JPMorgan Chase Bank N.A.		TRY	95,430		25,070		24,000		1,070
1/16/18	Bank of America N.A.		ZAR	987,065		79,620		69,000		10,620
Net unrealized appreciation on forward foreign currency exchange contracts to buy									$	39,695

Forward Foreign Currency Exchange Contracts to Sell

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
1/23/18	Goldman Sachs & Co.		AUD	295,076		230,234		223,572	$	(6,662	)
1/9/18	Goldman Sachs & Co.		BRL	217,062		65,393		68,556		3,163
1/16/18	Goldman Sachs & Co.		CHF	554,413		569,423		573,677		4,254
1/9/18	Bank of America N.A.		CLP	73,352,318		119,194		115,062		(4,132	)
1/9/18	Goldman Sachs & Co.		CLP	73,352,318		119,195		116,198		(2,997	)
1/23/18	Bank of America N.A.		CNH	1,543,126		236,682		231,000		(5,682	)
1/9/18	JPMorgan Chase Bank N.A.		COP	2,118,706,526		709,522		709,903		381
1/16/18	Bank of America N.A.		EUR	406,401		487,990		482,000		(5,990	)
1/16/18	JPMorgan Chase Bank N.A.		EUR	828,101		994,350		980,755		(13,595	)

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
1/23/18	JPMorgan Chase Bank N.A.		IDR	273,900,000		20,226		20,000	$	(226	)
1/16/18	Bank of America N.A.		ILS	1,185,692		340,914		340,484		(430	)
1/23/18	JPMorgan Chase Bank N.A.		INR	15,207,144		237,956		231,534		(6,422	)
1/23/18	Bank of America N.A.		INR	7,266,560		113,704		112,000		(1,704	)
1/23/18	Bank of America N.A.		KRW	249,109,800		233,478		227,000		(6,478	)
1/9/18	JPMorgan Chase Bank N.A.		MXN	1,015,412		51,584		54,000		2,416
1/23/18	Goldman Sachs & Co.		MYR	2,504,916		616,026		612,000		(4,026	)
1/23/18	Goldman Sachs & Co.		NZD	480,952		340,769		343,753		2,984
1/23/18	JPMorgan Chase Bank N.A.		NZD	331,726		235,038		227,000		(8,038	)
1/9/18	JPMorgan Chase Bank N.A.		PEN	1,579,364		486,940		481,000		(5,940	)
1/23/18	Bank of America N.A.		PHP	14,774,240		295,840		283,412		(12,428	)
1/16/18	Goldman Sachs & Co.		RUB	12,332,554		213,701		209,784		(3,917	)
1/23/18	Goldman Sachs & Co.		SGD	298,300		223,107		218,984		(4,123	)
1/16/18	Bank of America N.A.		ZAR	6,402,463		516,444		464,420		(52,024	)
1/16/18	Goldman Sachs & Co.		ZAR	2,803,035		226,102		207,090		(19,012	)
Net unrealized depreciation on forward foreign currency exchange contracts to sell									$	(150,628	)

Currency Legend

ARS	–	Argentine Peso
AUD	–	Australian Dollar
BRL	–	Brazilian Real
CHF	–	Swiss Franc
CLP	–	Chilean Peso
CNH	–	Chinese Yuan Renminbi
COP	–	Colombian Peso
CZK	–	Czech Koruna
EGP	–	Egyptian Pound
EUR	–	Euro
HRK	–	Croatian Kuna
HUF	–	Hungarian Forint
IDR	–	Indonesian Rupiah
ILS	–	Israeli Shekel
INR	–	Indian Rupee
JPY	–	Japanese Yen
KRW	–	South Korean Won
KZT	–	Kazakhstani Tenge
MXN	–	Mexican Peso
MYR	–	Malaysian Ringgit
NZD	–	New Zealand Dollar
PEN	–	Peruvian Nouveau Sol
PHP	–	Philippines Peso
PLN	–	Polish Zloty
RSD	–	Serbian Dinar
RUB	–	Russian Ruble

See accompanying Notes to the Financial Statements.

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December 31, 2017 (Unaudited)

SEK	–	Swedish Krona
SGD	–	Singapore Dollar
TRY	–	Turkish New Lira
ZAR	–	South African Rand

FUTURES

TYPE

EXPIRATION DATE

CONTRACTS

NOTIONAL AMOUNT

POSITION

FAIR VALUE

UNREALIZED DEPRECIATION

Short Futures

U.S. Ultra Bond

03/20/18

2

332,247

Short

$

335,313

$

(3,066

)

OTC – Interest Rate Swaps

DESCRIPTION	NOTIONAL AMOUNT			PAY/RECEIVE PAYMENT FREQUENCY		UNREALIZED APPRECIATION (DEPRECIATION)			VALUE
Agreement with Bank of America N.A. dated 5/18/17 paying a fixed rate of 1.22% receiving the notional amount multiplied by the HUF-BUBOR rate. Expiring 5/18/22		HUF	308,000,000		1Y/6M	$	(29,961	)	$	(29,961	)
Agreement with Bank of America N.A. dated 12/9/15 receiving a fixed rate of 8.09% paying the notional amount multiplied by the ZAR-JIBAR rate. Expiring 1/12/27		ZAR	4,300,000		3M/3M		3,218			3,218
Agreement with JPMorgan Chase Bank N.A. dated 5/19/17 paying a fixed rate of 0.43% receiving the notional amount multiplied by the ILS-TELBO rate. Expiring 5/19/20		ILS	6,500,000		1Y/3M		(7,079	)		(7,079	)
Agreement with JPMorgan Chase Bank N.A. dated 12/9/15 receiving a fixed rate of 7.45% paying the notional amount multiplied by the ZAR-JIBAR rate. Expiring 1/12/20		ZAR	4,460,000		3M/3M		5,279			5,279
Total OTC Interest Rate Swaps						$	(28,543	)	$	(28,543	)

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

OTC Credit Default Swaps – Buy Protection ⁽¹⁾

REFERENCE OBLIGATION	FIXED-DEAL RECEIVED RATE			PAYMENT FREQUENCY		MATURITY DATE		COUNTERPARTY	ORIGINAL NOTIONAL AMOUNT		CURRENT NOTIONAL AMOUNT (2)		UPFRONT PREMIUMS PAID/ (RECEIVED)		FAIR VALUE (3)			UNREALIZED APPRECIATION (DEPRECIATION)
Penerbangan Malaysia Bhd		0.00	%		3M		12/20/2022	BNP Paribas S.A.		100,000		100,000	$	1,534	$	(1,954	)	$	(3,488	)

OTC Credit Default Swaps – Sell Protection⁽¹⁾

REFERENCE OBLIGATION	FIXED-DEAL RECEIVED RATE			PAYMENT FREQUENCY		MATURITY DATE		COUNTERPARTY		ORIGINAL NOTIONAL AMOUNT		CURRENT NOTIONAL AMOUNT (2)		UPFRONT PREMIUMS PAID/ (RECEIVED)			FAIR VALUE (3)			UNREALIZED APPRECIATION (DEPRECIATION)
Colombia Government International Bond		1.00	%		3M		12/20/2022		BNP Paribas S.A.	$	100,000	$	100,000	$	(1,242	)	$	(2,778	)	$	(1,536	)
Indonesia Government International Bond		1.00	%		3M		12/20/2022		BNP Paribas S.A.		200,000		200,000		(39	)		1,394			1,433
Mexico Government International Bond		1.00	%		3M		12/20/2022		Goldman Sachs International		200,000		200,000		(760	)		(628	)		132
Panama Government International Bond		1.00	%		3M		12/20/2022		Bank of America N.A.		200,000		200,000		1,943			3,107			1,164
Peruvian Government International Bond		1.00	%		3M		12/20/2022		BNP Paribas S.A.		200,000		200,000		1,973			2,649			676
Russian Government International Bond		1.00	%		3M		12/20/2022		BNP Paribas S.A.		100,000		100,000		(1,039	)		(835	)		204
Total OTC Credit Default Swaps															836			2,909			2,073

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

OTC Cross Currency Swaps

NOTIONAL AMOUNT	FUND PAYS			PAY/RECEIVE PAYMENT FREQUENCY		MATURITY DATE		COUNTERPARTY	NOTIONAL AMOUNT		FUND RECEIVES			UPFRONT PREMIUMS PAID/ (RECEIVED)			FAIR VALUE			UNREALIZED APPRECIATION (DEPRECIATION)
100,000 EUR		5.125			1Y/6M		6/15/2025	Bank of America N.A.	$	100,000 USD		7.625	%	$	(75	)	$	(14,923	)	$	(14,848	)
200,000 EUR		5.30	%		1Y/6M		1/15/2028	Citibank N.A.		200,000 USD		7.85	%		(40	)		(8,592	)		(8,552	)
200,000 EUR		2.75	%		1Y/6M		1/27/2030	Citibank N.A.		200,000 USD		4.89	%		(10	)		(3,553	)		(3,543	)
Total OTC Cross Currency Swaps															(125	)		(27,068	)		(26,943	)

⁽¹⁾  If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities. If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.

⁽²⁾  The maximum potential amount the Portfolio could be required to make as a seller of credit protection or receive as a buyer of credit event as defined under the terms of that particular swap agreement.

⁽³⁾  The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the expected amount paid or received for the credit derivative if the amount of the swap agreement was closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreements.

Abbreviation Legend

OTC — Over the Counter

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 90.8%*:
Foreign Government — 90.8%*:
Argentina — 3.7%*:
Argentine Bonos del Tesoro+		15.50	%		10/17/2026		2,045,000		$124,334		$108,655
Argentine Bonos del Tesoro+		16.00			10/17/2023		11,833,000		670,579		624,911
Total Argentina							13,878,000		794,913		733,566
Brazil — 8.0%*:
Brazil Notas do Tesouro Nacional Serie B+		6.00			8/15/2050		1,632,000		1,642,593		1,613,027
Chile — 4.3%*:
Bonos de la Tesoreria de la Republica en pesos+		4.50			3/1/2021		485,000,000		788,355		807,184
Chile Government International Bond+		5.50			8/5/2020		32,300,000		47,608		54,966
Total Chile							517,300,000		835,963		862,150
Colombia — 6.8%*:
Colombian TES+		3.00			3/25/2033		676,369,556		214,986		212,128
Colombian TES+		4.75			4/4/2035		2,013,966,066		782,838		777,900
Colombian TES+		7.75			9/18/2030		1,048,000,000		343,181		381,263
Total Colombia							3,738,335,622		1,341,005		1,371,291
El Salvador — 1.0%*:
El Salvador Government International Bond^+		8.25			4/10/2032		159,000		176,824		182,850
El Salvador Government International Bond^+		8.63			2/28/2029		10,000		10,711		11,715
Total El Salvador							169,000		187,535		194,565
Ghana — 1.6%*:
Ghana Government Bond+		18.25			7/25/2022		785,000		179,303		180,662
Ghana Government Bond+		21.50			3/9/2020		330,000		78,914		78,656
Ghana Government Bond+		24.75			3/1/2021		100,000		26,678		26,131
Ghana Government Bond+		24.75			7/19/2021		110,000		28,456		29,278
Total Ghana							1,325,000		313,351		314,727
Hungary — 0.3%*:
Hungary Government Bond+		5.50			12/20/2018		14,750,000		58,629		60,094
Indonesia — 9.3%*:
Indonesia Treasury Bond+		7.00			5/15/2027		900,000,000		67,420		69,272
Indonesia Treasury Bond+		8.38			3/15/2024		1,000,000,000		81,651		81,740
Indonesia Treasury Bond+		8.38			3/15/2034		20,829,000,000		1,635,115		1,713,681
Total Indonesia							22,729,000,000		1,784,186		1,864,693

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Foreign Government (Continued)
Malaysia — 4.6%*:
Malaysia Government Bond+		4.74	%		3/15/2046		2,995,000		$718,831		$724,851
Malaysia Government Bond+		4.94			9/30/2043		803,000		190,887		199,201
Total Malaysia							3,798,000		909,718		924,052
Mexico — 4.6%*:
Mexican Bonos+		7.75			5/29/2031		850,000		45,843		43,348
Mexican Bonos+		7.75			11/13/2042		17,300,000		959,663		873,788
Total Mexico							18,150,000		1,005,506		917,136
Nigeria — 1.5%*:
Nigeria Treasury Bill+		Zero Coupon			6/14/2018		14,391,000		37,133		37,297
Nigeria Treasury Bill+		Zero Coupon			6/21/2018		14,391,000		36,839		37,187
Nigeria Treasury Bill+		Zero Coupon			7/5/2018		90,550,000		234,938		232,613
Total Nigeria							119,332,000		308,910		307,097
Peru — 4.2%*:
Peru Government Bond+		6.85			2/12/2042		2,160,000		700,727		724,547
Peru Government Bond+		6.95			8/12/2031		343,000		115,259		120,353
Total Peru							2,503,000		815,986		844,900
Poland — 4.8%*:
Poland Government Bond+		2.50			7/25/2018		3,325,000		918,270		963,502
Romania — 3.3%*:
Romania Government Bond+		5.60			11/28/2018		2,510,000		656,705		664,846
Russia — 11.7%*:
Russian Federal Bond — OFZ+		7.00			8/16/2023		83,843,000		1,401,121		1,458,680
Russian Federal Bond — OFZ+		8.50			9/17/2031		47,130,000		867,321		885,471
Total Russia							130,973,000		2,268,442		2,344,151
Serbia — 1.1%*:
Serbia Treasury Bond+		5.75			7/21/2023		20,120,000		206,348		211,553
South Africa — 12.8%*:
South Africa Government Bond+		6.50			2/28/2041		31,500,000		1,660,654		1,791,872
South Africa Government Bond+		8.75			2/28/2048		10,700,000		686,636		779,631
Total South Africa							42,200,000		2,347,290		2,571,503
Thailand — 2.4%*:
Thailand Government Bond+		1.20			7/14/2021		9,150,930		248,838		279,232
Thailand Government Bond+		3.88			6/13/2019		6,450,000		201,524		204,858
Total Thailand							15,600,930		450,362		484,090

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Foreign Government (Continued)
Turkey — 4.8%*:
Turkey Government Bond+		10.70	%		2/17/2021		400,000		$96,464		$100,063
Turkey Government Bond+		10.70			8/17/2022		3,450,000		843,953		868,506
Total Turkey							3,850,000		940,417		968,569
Total Foreign Government							27,378,751,552		17,786,129		18,215,512
Total Fixed Income							27,378,751,552		17,786,129		18,215,512
Short-Term Investments — 9.4%*:
Bank Deposit — 9.4%*:
State Street Bank & Trust Co. Euro Time Deposit		0.12			1/2/2018		1,885,090		1,885,090		1,885,090
Total Investments							27,380,636,642		19,671,219		20,100,602
Other assets and liabilities – (0.2%)*											(34,091	)
Net Assets – 100.0%											$20,066,511

‡‡ 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:

South Africa	14.1%
Russia	12.9%
Indonesia	10.2%
Brazil	8.9%
Colombia	7.5%
Turkey	5.3%
Poland	5.3%
Malaysia	5.1%
Mexico	5.0%
Chile	4.7%
Peru	4.6%
Argentina	4.0%
Romania	3.7%
Thailand	2.7%
Ghana	1.7%
Nigeria	1.7%
Serbia	1.2%
El Salvador	1.1%
Other (Individually less than 1%)	0.3%
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.

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

A summary of outstanding derivatives at December 31, 2017 is as follows:

Cross Currency Forward Foreign Currency Exchange Contracts

EXPIRATION DATE	DELIVER/ RECEIVE	COUNTERPARTY	CONTRACT AMOUNT PURCHASED		CONTRACT AMOUNT SOLD		NET UNREALIZED APPRECIATION (DEPRECIATION)
3/6/18	CZK/EUR	Bank of America N.A.		257,000		6,599,760	$	(1,565	)
3/6/18	EUR/CZK	Goldman Sachs & Co.		7,139,628		275,000		5,335
3/6/18	EUR/CZK	Citibank N.A.		11,855,084		464,000		(26	)
3/6/18	EUR/CZK	BNP Paribas S.A.		6,374,210		242,000		9,003
3/6/18	EUR/CZK	Bank of America N.A.		4,389,245		165,000		8,176
3/6/18	EUR/CZK	JPMorgan Chase Bank N.A.		337,915		13,000		271
1/16/18	EUR/HRK	Bank of America N.A.		1,181,912		157,000		2,108
1/16/18	EUR/HRK	Citibank N.A.		83,131		11,000		200
1/16/18	EUR/HRK	Goldman Sachs & Co.		1,282,310		170,000		2,691
1/16/18	EUR/HUF	Goldman Sachs & Co.		288,091,312		919,638		10,790
1/16/18	EUR/HUF	Bank of America N.A.		5,928,718		19,000		132
1/16/18	EUR/PLN	JPMorgan Chase Bank N.A.		1,416,982		328,286		13,286
1/16/18	EUR/PLN	Bank of America N.A.		157,300		37,000		806
1/16/18	EUR/PLN	Goldman Sachs & Co.		3,259,298		773,000		9,066
1/16/18	EUR/RON	JPMorgan Chase Bank N.A.		756,636		164,126		(2,641	)
1/16/18	EUR/RON	Bank of America N.A.		41,847		9,000		(53	)
1/16/18	EUR/RSD	Citibank N.A.		19,687,044		163,711		(1,773	)
1/16/18	EUR/RSD	Bank of America N.A.		8,823,020		74,000		(1,859	)
1/16/18	PLN/EUR	JPMorgan Chase Bank N.A.		31,000		132,146		(776	)
1/16/18	RON/EUR	Goldman Sachs & Co.		12,000		55,466		156
Net unrealized appreciation on cross currency forward foreign currency exchange contracts							$	53,327

Forward Foreign Currency Exchange Contracts to Buy

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
6/15/18	JPMorgan Chase Bank N.A.		ARS	6,562,500		320,135		350,000	$	(29,865	)
1/9/18	JPMorgan Chase Bank N.A.		BRL	958,042		288,629		302,689		(14,060	)
1/9/18	Goldman Sachs & Co.		BRL	145,408		43,807		45,000		(1,193	)
1/9/18	Citibank N.A.		BRL	1,104,099		332,632		332,000		632
1/9/18	Bank of America N.A.		COP	422,086,800		141,348		138,000		3,348
1/16/18	Bank of America N.A.		EGP	1,698,304		95,120		93,813		1,307
1/16/18	Goldman Sachs & Co.		EGP	1,698,304		95,120		93,855		1,265
1/16/18	JPMorgan Chase Bank N.A.		EGP	3,413,350		191,178		190,000		1,178
1/16/18	JPMorgan Chase Bank N.A.		EUR	16,526		19,860		19,360		500
1/16/18	BNP Paribas S.A.		EUR	21,162		25,430		25,000		430
1/16/18	Goldman Sachs & Co.		EUR	1,992,067		2,393,893		2,359,790		34,103
1/16/18	Citibank N.A.		HUF	15,875,591		61,495		59,383		2,112
1/16/18	Goldman Sachs & Co.		HUF	94,940,083		367,753		360,643		7,110

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
1/16/18	BNP Paribas S.A.		HUF	7,938,469		30,750		29,583	$	1,167
1/16/18	Bank of America N.A.		HUF	24,028,549		93,075		90,100		2,975
1/23/18	JPMorgan Chase Bank N.A.		IDR	2,704,900,040		199,756		198,379		1,377
1/23/18	Goldman Sachs & Co.		IDR	2,123,004,000		156,783		156,000		783
1/23/18	Goldman Sachs & Co.		JPY	32,633,551		289,948		291,844		(1,896	)
1/23/18	JPMorgan Chase Bank N.A.		JPY	33,127,249		294,334		295,000		(666	)
1/23/18	JPMorgan Chase Bank N.A.		KZT	163,171,836		488,620		481,546		7,074
1/23/18	Goldman Sachs & Co.		KZT	98,550,000		295,109		292,000		3,109
1/9/18	Goldman Sachs & Co.		MXN	16,396,093		837,053		886,232		(49,179	)
1/9/18	JPMorgan Chase Bank N.A.		MXN	2,526,754		128,996		132,000		(3,004	)
1/9/18	BNP Paribas S.A.		MXN	18,840,235		961,832		982,764		(20,932	)
1/23/18	Goldman Sachs & Co.		MYR	4,133,633		1,019,643		993,715		25,928
1/23/18	JPMorgan Chase Bank N.A.		NZD	205,071		145,811		143,853		1,958
1/23/18	Goldman Sachs & Co.		NZD	133,271		94,760		91,045		3,715
1/9/18	Goldman Sachs & Co.		PEN	106,173		32,755		32,439		316
1/23/18	Goldman Sachs & Co.		PHP	11,430,950		229,220		220,208		9,012
1/16/18	Goldman Sachs & Co.		PLN	1,815,126		522,373		502,835		19,538
1/16/18	Goldman Sachs & Co.		RUB	1,254,591		21,771		21,225		546
1/16/18	Citibank N.A.		SEK	100,042		12,228		12,000		228
1/16/18	Goldman Sachs & Co.		SEK	3,252,755		397,589		387,000		10,589
1/23/18	Goldman Sachs & Co.		SGD	182,082		136,290		134,309		1,981
1/23/18	BNP Paribas S.A.		THB	29,410,614		902,934		906,000		(3,066	)
1/23/18	Citibank N.A.		THB	10,374,318		318,501		313,822		4,679
1/16/18	Bank of America N.A.		TRY	2,568,765		674,695		681,858		(7,163	)
1/16/18	Citibank N.A.		TRY	106,702		28,026		27,000		1,026
1/16/18	Goldman Sachs & Co.		TRY	235,958		61,975		60,000		1,975
1/16/18	JPMorgan Chase Bank N.A.		TRY	202,789		53,263		51,000		2,263
1/16/18	BNP Paribas S.A.		TRY	3,167,192		831,875		813,000		18,875
1/16/18	JPMorgan Chase Bank N.A.		ZAR	934,345		75,322		65,306		10,016
Net unrealized appreciation on forward foreign currency exchange contracts to buy									$	50,091

Forward Foreign Currency Exchange Contracts to Sell

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
1/23/18	Goldman Sachs & Co.		AUD	247,800		193,823		187,753	$	(6,070	)
1/23/18	Citibank N.A.		AUD	250,542		195,968		192,000		(3,968	)
1/16/18	Goldman Sachs & Co.		CHF	187,327		192,392		193,836		1,444
1/16/18	JPMorgan Chase Bank N.A.		CHF	190,641		195,795		193,000		(2,795	)
1/9/18	Bank of America N.A.		CLP	133,465,509		217,024		209,358		(7,666	)
1/9/18	Goldman Sachs & Co.		CLP	133,465,509		217,024		211,424		(5,600	)
1/9/18	BNP Paribas S.A.		CLP	261,580,000		425,347		410,000		(15,347	)
1/23/18	Bank of America N.A.		CNH	1,269,238		194,728		190,000		(4,728	)
1/23/18	Goldman Sachs & Co.		CNH	1,284,338		197,045		194,000		(3,045	)

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
1/9/18	JPMorgan Chase Bank N.A.		COP	452,047,740		151,381		151,465	$	84
1/16/18	Bank of America N.A.		EUR	351,933		422,923		417,400		(5,523	)
1/16/18	JPMorgan Chase Bank N.A.		EUR	507,938		610,395		600,455		(9,940	)
1/23/18	JPMorgan Chase Bank N.A.		HKD	3,051,830		390,559		391,654		1,095
1/23/18	JPMorgan Chase Bank N.A.		IDR	1,506,450,000		111,251		110,000		(1,251	)
1/16/18	Bank of America N.A.		ILS	2,074,663		597,892		592,805		(5,087	)
1/23/18	JPMorgan Chase Bank N.A.		INR	12,737,507		199,319		193,932		(5,387	)
1/23/18	Bank of America N.A.		INR	6,617,760		103,556		102,000		(1,556	)
1/23/18	BNP Paribas S.A.		INR	19,485,930		304,920		303,000		(1,920	)
1/23/18	Bank of America N.A.		KRW	210,700,800		197,082		192,000		(5,082	)
1/23/18	JPMorgan Chase Bank N.A.		KRW	213,316,600		199,529		196,000		(3,529	)
1/23/18	Bank of America N.A.		KZT	36,122,890		108,170		105,999		(2,171	)
1/23/18	Citibank N.A.		KZT	29,302,470		87,747		87,000		(747	)
1/23/18	Goldman Sachs & Co.		MYR	1,346,814		332,219		326,000		(6,219	)
1/23/18	Goldman Sachs & Co.		NZD	338,342		240,571		241,825		1,254
1/23/18	JPMorgan Chase Bank N.A.		NZD	280,579		199,500		192,000		(7,500	)
1/23/18	State Street Bank & Trust Co.		NZD	283,945		201,893		199,000		(2,893	)
1/9/18	JPMorgan Chase Bank N.A.		PEN	1,031,080		318,093		314,000		(4,093	)
1/23/18	Bank of America N.A.		PHP	11,430,950		229,220		219,278		(9,942	)
1/16/18	Citibank N.A.		RON	1,124,391		289,170		289,560		390
1/16/18	Goldman Sachs & Co.		RUB	14,639,509		254,039		249,026		(5,013	)
1/16/18	Citibank N.A.		RUB	12,435,348		215,790		211,000		(4,790	)
1/23/18	Goldman Sachs & Co.		SGD	182,082		136,290		133,668		(2,622	)
1/16/18	Goldman Sachs & Co.		TRY	126,534		33,235		32,322		(913	)
1/16/18	JPMorgan Chase Bank N.A.		TRY	970,775		254,978		251,081		(3,897	)
1/16/18	Bank of America N.A.		ZAR	5,597,022		451,200		405,880		(45,320	)
1/16/18	Goldman Sachs & Co.		ZAR	1,075,999		86,741		79,496		(7,245	)
1/16/18	BNP Paribas S.A.		ZAR	5,447,770		439,168		411,000		(28,168	)
Net unrealized depreciation on forward foreign currency exchange contracts to sell									$	(215,760	)

Currency Legend

ARS	–	Argentine Peso
AUD	–	Australian Dollar
BRL	–	Brazilian Real
CHF	–	Swiss Franc
CLP	–	Chilean Peso
CNH	–	Chinese Yuan Renminbi
COP	–	Colombian Peso
CZK	–	Czech Koruna
EGP	–	Egyptian Pound
EUR	–	Euro
HKD	–	Hong Kong Dollar
HRK	–	Croatian Kuna
HUF	–	Hungarian Forint

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

IDR	–	Indonesian Rupiah
ILS	–	Israeli Shekel
INR	–	Indian Rupee
JPY	–	Japanese Yen
KRW	–	South Korean Won
KZT	–	Kazakhstani Tenge
MXN	–	Mexican Peso
MYR	–	Malaysian Ringgit
NZD	–	New Zealand Dollar
PEN	–	Peruvian Nouveau Sol
PHP	–	Philippines Peso
PLN	–	Polish Zloty
RON	–	Romanian New Leu
RSD	–	Serbian Dinar.
RUB	–	Russian Ruble
SEK	–	Swedish Krona
SGD	–	Singapore Dollar
THB	–	Thai Baht
TRY	–	Turkish New Lira
ZAR	–	South African Rand

OTC – Interest Rate Swaps

DESCRIPTION		NOTIONAL AMOUNT		PAY/RECEIVE PAYMENT FREQUENCY		UNREALIZED APPRECIATION (DEPRECIATION)			VALUE
Agreement with Bank of America N.A. dated 12/9/15 receiving a fixed rate of 8.68% paying the notional amount multiplied by the ZAR-JIBAR rate. Expiring 12/9/25	ZAR		8,000,000		3M/3M	$	36,887		$	36,887
Agreement with Bank of America N.A. dated 5/18/17 paying a fixed rate of 1.22% receiving the notional amount multiplied by the HUF-BUBOR rate. Expiring 5/18/22	HUF		92,000,000		1Y/6M		(8,971	)		(8,971	)
Agreement with Bank of America N.A. dated 5/18/17 paying a fixed rate of 1.84% receiving the notional amount multiplied by the HUF-BUBOR rate. Expiring 11/24/27	HUF		76,800,000		1Y/6M		(3,429	)		(3,429	)
Agreement with Bank of America N.A. dated 5/18/17 paying a fixed rate of 1.73% receiving the notional amount multiplied by the HUF-BUBOR rate. Expiring 12/21/27	HUF		67,700,000		1YR/6M		(85	)		(85	)

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

DESCRIPTION		NOTIONAL AMOUNT		PAY/RECEIVE PAYMENT FREQUENCY		UNREALIZED APPRECIATION (DEPRECIATION)			VALUE
Agreement with JPMorgan Chase Bank N.A. dated 12/9/15 receiving a fixed rate of 6.35% paying the notional amount multiplied by the MXN-TIIE rate. Expiring 11/27/25	MXN		4,750,000		28D/28D	$	(22,736	)	$	(22,736	)
Agreement with JPMorgan Chase Bank N.A. dated 5/19/17 paying a fixed rate of 0.43% receiving the notional amount multiplied by the ILS-TELBO rate. Expiring 5/19/20	ILS		1,700,000		1YR/3M		(1,856	)		(1,856	)
Total OTC Interest Rate Swaps							(190	)	$	(190	)

Centrally Cleared Interest Rate Swaps

FLOATING RATE REFERENCE

PAY/ RECEIVE FLOATING RATE

FIXED RATE

MATURITY DATE

PAY/RECEIVE PAYMENT FREQUENCY

NOTIONAL AMOUNT

CLEARED EXCHANGE

UNREALIZED APPRECIATION

MXN_TIIE Rate

Pay

7.77

%

4/5/27

1M/1M

14,700,000

CME

(6,669

)

MXN_TIIE Rate

Pay

7.73

%

12/8/25

28D/28D

18,100,000

CME

(15,310

)

Total Centrally Cleared Interst Rate swaps

(21,979

)

Abbreviation Legend

OTC – Over the Counter

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 98.7%*:
Bank Loans — 1.9%*§:
Beverage, Food and Tobacco — 0.1%*:
Del Monte Foods, Inc., 3M LIBOR + 3.250%		4.70	%		2/18/2021		46,056		$42,033		$36,582
Healthcare, Education and Childcare — 0.9%*:
Centene Corp., 3M LIBOR + 3.500%¤		5.19			9/13/2018		250,000		250,000		249,375
Mining, Steel, Iron and Non-Precious Metals — 0.5%*:
Murray Energy Corp., 3M LIBOR + 7.250%		8.94			4/16/2020		148,807		143,698		130,578
Oil and Gas — 0.4%*:
Gulf Finance LLC, 3M LIBOR + 5.250%		6.95			8/25/2023		104,153		103,323		93,260
Total Bank Loans							549,016		539,054		509,795
Corporate Bonds — 96.8%*:
Aerospace and Defense — 2.6%*:
Swissport Financing Sarl+		9.75			12/15/2022		100,000		132,463		124,668
TransDigm, Inc.		6.38			6/15/2026		262,000		259,844		264,620
Triumph Group, Inc.		4.88			4/1/2021		38,000		36,759		37,335
Triumph Group, Inc.^		7.75			8/15/2025		250,000		250,000		265,313
Total Aerospace and Defense							650,000		679,066		691,936
Automobile — 3.9%*:
AA Bond Co. Ltd.+		5.50			7/31/2043		200,000		276,734		271,278
Allison Transmission, Inc.^		4.75			10/1/2027		247,000		247,000		248,544
International Automotive Components Group SA^		9.13			6/1/2018		178,000		178,313		176,220
JB Poindexter & Co., Inc.^		9.00			4/1/2022		201,000		209,199		208,537
RAC Bond Co. PLC+		5.00			11/6/2022		100,000		128,880		134,444
Total Automobile							926,000		1,040,126		1,039,023
Beverage, Food and Tobacco — 3.5%*:
Boparan Finance PLC+		5.50			7/15/2021		150,000		188,470		182,667
JBS USA LUX SA/JBS USA Finance, Inc.^		5.88			7/15/2024		137,000		140,611		132,376
JBS USA LUX SA/JBS USA Finance, Inc.^		8.25			2/1/2020		114,000		115,512		114,342
KeHE Distributors LLC/KeHE Finance Corp.^		7.63			8/15/2021		150,000		151,271		150,375
Pilgrim’s Pride Corp.^		5.88			9/30/2027		200,000		200,000		206,000
Premier Foods Finance PLC+		6.50			3/15/2021		100,000		146,216		137,378
Total Beverage, Food and Tobacco							851,000		942,080		923,138
Broadcasting and Entertainment — 5.2%*:
CCO Holdings LLC/CCO Holdings Capital Corp.^		5.00			2/1/2028		300,000		300,282		291,750
CCO Holdings LLC/CCO Holdings Capital Corp.^		5.75			2/15/2026		250,000		250,000		259,687
Clear Channel Worldwide Holdings, Inc.		7.63			3/15/2020		245,000		244,047		239,850

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Broadcasting and Entertainment (Continued)
DISH DBS Corp.		7.75	%		7/1/2026		216,000	$	216,000	$	227,070
Sirius XM Radio, Inc.^		5.00			8/1/2027		229,000		229,000		229,573
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH+		6.25			1/15/2029		100,000		117,537		134,621
Total Broadcasting and Entertainment							1,340,000		1,356,866		1,382,551
Buildings and Real Estate — 1.9%*:
Beacon Escrow Corp.^		4.88			11/1/2025		250,000		250,000		250,937
Standard Industries, Inc.^		4.75			1/15/2028		250,000		250,000		250,578
Total Buildings and Real Estate							500,000		500,000		501,515
Cargo Transport — 4.7%*:
American Airlines Group, Inc.^		5.50			10/1/2019		265,000		268,190		272,288
Deck Chassis Acquisition, Inc.^		10.00			6/15/2023		387,000		393,742		430,537
Kenan Advantage Group, Inc.^		7.88			7/31/2023		400,000		411,159		414,000
WFS Global Holding SAS+		9.50			7/15/2022		100,000		111,351		127,886
Total Cargo Transport							1,152,000		1,184,442		1,244,711
Chemicals, Plastics and Rubber — 4.4%*:
Chemours Co. (The)		5.38			5/15/2027		156,000		154,589		161,460
Chemours Co. (The)		7.00			5/15/2025		88,000		89,008		95,480
Consolidated Energy Finance SA^		6.88			6/15/2025		300,000		298,580		318,000
Huntsman International LLC		4.25			4/1/2025		100,000		130,266		136,682
INEOS Group Holdings SA+		5.38			8/1/2024		100,000		110,725		127,970
LBC Tank Terminals Holding Netherlands BV^		6.88			5/15/2023		215,000		208,500		223,869
Monitchem HoldCo 2 SA+		6.88			6/15/2022		100,000		98,702		109,917
Total Chemicals, Plastics and Rubber							1,059,000		1,090,370		1,173,378
Containers, Packaging and Glass — 3.3%*:
Coveris Holdings SA^		7.88			11/1/2019		572,000		558,092		567,710
Horizon Holdings I SASU+		7.25			8/1/2023		100,000		115,502		127,034
SIG Combibloc Holdings SCA+		7.75			2/15/2023		150,000		171,089		187,792
Total Containers, Packaging and Glass							822,000		844,683		882,536
Diversified/Conglomerate Manufacturing — 1.2%*:
Amsted Industries, Inc.^		5.38			9/15/2024		46,000		45,896		47,840
Appvion, Inc.^~		9.00			6/1/2020		327,000		213,682		49,050
EnPro Industries, Inc.		5.88			9/15/2022		221,000		222,604		230,116
Total Diversified/Conglomerate Manufacturing							594,000		482,182		327,006
Diversified/Conglomerate Service — 6.0%*:
APTIM Corp.^		7.75			6/15/2025		156,000		156,000		148,980
Carlson Travel, Inc.^		9.50			12/15/2024		280,000		280,000		225,400
Iron Mountain UK PLC		3.88			11/15/2025		100,000		132,815		132,085

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Diversified/Conglomerate Service (Continued)
Loxam SAS+		6.00	%		4/15/2025		100,000	$	107,720	$	130,434
Prime Security Services Borrower LLC/Prime Finance, Inc.^		9.25			5/15/2023		250,000		250,000		277,500
United Rentals North America, Inc.		4.63			10/15/2025		125,000		125,000		125,938
United Rentals North America, Inc.		4.88			1/15/2028		125,000		125,306		125,625
Verisure Midholding AB+		5.75			12/1/2023		150,000		176,872		181,208
Zachry Holdings, Inc.^		7.50			2/1/2020		250,000		251,652		253,750
Total Diversified/Conglomerate Service							1,536,000		1,605,365		1,600,920
Electronics — 1.8%*:
j2 Cloud Services LLC/j2 Global Co-Obligor, Inc.^		6.00			7/15/2025		95,000		95,000		99,987
TIBCO Software, Inc.^		11.38			12/1/2021		339,000		367,522		369,300
Total Electronics							434,000		462,522		469,287
Finance — 7.9%*:
Aircastle Ltd.		4.13			5/1/2024		250,000		250,000		253,750
Aircastle Ltd.		5.00			4/1/2023		19,000		19,867		20,021
Aircastle Ltd.		5.50			2/15/2022		19,000		20,184		20,354
Arrow Global Finance PLC+		5.13			9/15/2024		100,000		118,905		136,332
Cabot Financial Luxembourg SA+		7.50			10/1/2023		100,000		135,422		141,226
Galaxy Finco Ltd.+		7.88			11/15/2021		250,000		381,173		337,960
Garfunkelux Holdco 3 S.A.+		8.50			11/1/2022		300,000		448,651		423,272
Jerrold Finco PLC+		6.13			1/15/2024		100,000		124,555		137,580
LPL Holdings, Inc.^		5.75			9/15/2025		300,000		300,000		305,250
Veritas US, Inc./Veritas Bermuda Ltd.^		10.50			2/1/2024		200,000		215,866		208,000
VFH Parent LLC/Orchestra Co-Issuer, Inc.^		6.75			6/15/2022		102,000		102,000		107,355
Total Finance							1,740,000		2,116,623		2,091,100
Grocery — 0.8%*:
Post Holdings, Inc.^		5.75			3/1/2027		200,000		200,000		203,500
Healthcare, Education and Childcare — 8.3%*:
Avantor, Inc.^		9.00			10/1/2025		220,000		220,000		216,700
Catalent Pharma Solutions, Inc.^		4.88			1/15/2026		227,000		227,000		227,851
CHS/Community Health Systems, Inc.		6.25			3/31/2023		177,000		177,000		159,300
Cognita Financing PLC+		7.75			8/15/2021		100,000		134,546		139,673
HCA, Inc.		5.38			2/1/2025		200,000		202,828		207,000
IDH Finance PLC+		6.25			8/15/2022		100,000		131,025		123,464
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA^		6.63			5/15/2022		220,000		209,341		221,100
Valeant Pharmaceuticals International, Inc.^		5.50			3/1/2023		101,000		76,718		92,415
Valeant Pharmaceuticals International, Inc.^		5.88			5/15/2023		42,000		35,130		38,955
Valeant Pharmaceuticals International, Inc.^		6.13			4/15/2025		224,000		196,814		204,960
Valeant Pharmaceuticals International, Inc.^		6.50			3/15/2022		118,000		118,000		123,900

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Healthcare, Education and Childcare (Continued)
Valeant Pharmaceuticals International, Inc.^		7.00	%		3/15/2024		125,000	$	125,000	$	133,750
West Street Merger Sub, Inc.^		6.38			9/1/2025		300,000		300,000		300,750
Total Healthcare, Education and Childcare							2,154,000		2,153,402		2,189,818
Hotels, Motels, Inns and Gaming — 1.5%*:
TVL Finance PLC+		8.50			5/15/2023		180,000		255,495		264,170
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.^		5.25			5/15/2027		125,000		125,000		126,719
Total Hotels, Motels, Inns and Gaming							305,000		380,495		390,889
Insurance — 2.0%*:
Acrisure LLC/Acrisure Finance, Inc.^		7.00			11/15/2025		250,000		250,000		240,940
AssuredPartners, Inc.^		7.00			8/15/2025		286,000		286,000		284,570
Total Insurance							536,000		536,000		525,510
Leisure, Amusement, Entertainment — 6.5%*:
AMC Entertainment Holdings, Inc.		6.38			11/15/2024		200,000		254,832		270,813
Brunswick Corp.		7.13			8/1/2027		817,000		864,041		978,029
Perform Group Financing PLC+		8.50			11/15/2020		100,000		150,121		139,066
WMG Acquisition Corp.^		5.00			8/1/2023		160,000		160,000		165,600
WMG Acquisition Corp.^		6.75			4/15/2022		150,000		150,872		156,750
Total Leisure, Amusement, Entertainment							1,427,000		1,579,866		1,710,258
Machinery Non-Agriculture, Non-Construction, Non-Electronic — 0.3%*:
Apex Tool Group LLC^		7.00			2/1/2021		75,000		70,821		72,187
Mining, Steel, Iron and Non-Precious Metals — 8.2%*:
Allegheny Technologies, Inc.		5.95			1/15/2021		260,000		260,903		265,200
Alliance Resource Operating Partners LP/Alliance Resource Finance Corp.^		7.50			5/1/2025		215,000		215,000		228,437
ArcelorMittal		7.25			3/1/2041		165,000		192,293		208,725
Big River Steel LLC/BRS Finance Corp.^		7.25			9/1/2025		250,000		250,000		264,375
Constellium NV		4.25			2/15/2026		100,000		118,099		119,997
Hecla Mining Co.		6.88			5/1/2021		250,000		224,367		256,250
Kinross Gold Corp.+		5.95			3/15/2024		127,000		131,869		139,224
Kinross Gold Corp.		6.88			9/1/2041		82,000		81,598		92,762
Northwest Acquisitions ULC/Dominion Finco, Inc.^+		7.13			11/1/2022		83,000		82,167		85,698
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp.^		7.50			6/15/2025		250,000		246,491		261,250
Warrior Met Coal, Inc.^		8.00			11/1/2024		240,000		240,000		247,800
Total Mining, Steel, Iron and Non-Precious Metals							2,022,000		2,042,787		2,169,718

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Oil and Gas — 14.5%*:
Chesapeake Energy Corp.^		8.00	%		1/15/2025		200,000	$	197,324	$	202,000
Chesapeake Energy Corp.^		8.00			6/15/2027		125,000		125,000		120,000
Citgo Holding, Inc.^		10.75			2/15/2020		341,000		343,833		365,722
Energy Transfer Equity LP		4.25			3/15/2023		250,000		250,000		248,125
EP Energy LLC/Everest Acquisition Finance, Inc.^		8.00			2/15/2025		314,000		314,000		229,220
EP Energy LLC/Everest Acquisition Finance, Inc.		9.38			5/1/2020		58,000		54,600		49,010
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp.		8.63			6/15/2020		500,000		493,489		426,250
Genesis Energy LP/Genesis Energy Finance Corp.		6.50			10/1/2025		300,000		300,000		304,500
Jonah Energy LLC/Jonah Energy Finance Corp.^		7.25			10/15/2025		250,000		250,000		251,875
Jupiter Resources, Inc.+^		8.50			10/1/2022		405,000		333,097		251,100
KCA Deutag UK Finance PLC+^		9.88			4/1/2022		100,000		102,931		106,000
Kosmos Energy Ltd.^+		7.88			8/1/2021		450,000		432,365		460,125
NGPL PipeCo LLC^		4.38			8/15/2022		56,000		56,000		56,945
NGPL PipeCo LLC^		4.88			8/15/2027		65,000		65,000		67,438
Rowan Cos., Inc.		7.38			6/15/2025		188,000		188,000		191,290
Transocean, Inc.		6.80			3/15/2038		42,000		33,642		33,705
Transocean, Inc.		9.35			12/15/2041		32,000		29,774		30,960
Tullow Oil PLC+^		6.25			4/15/2022		250,000		207,334		250,950
Welltec A/S^+		9.50			12/1/2022		200,000		198,081		201,000
Total Oil and Gas							4,126,000		3,974,470		3,846,215
Personal Transportation — 1.0%*:
Hertz Corp. (The)^		7.63			6/1/2022		250,000		250,000		261,875
Personal, Food and Miscellaneous — 0.5%*:
Ocado Group PLC+		4.00			6/15/2024		100,000		128,127		134,330
Retail Stores — 2.2%*:
HSS Financing PLC+		6.75			8/1/2019		68,000		98,064		84,465
Maxeda DIY Holding B.V.+		6.13			7/15/2022		100,000		114,070		120,679
Penske Automotive Group, Inc.		5.50			5/15/2026		250,000		250,000		253,675
Travelex Financing PLC+		8.00			5/15/2022		100,000		108,750		121,545
Total Retail Stores							518,000		570,884		580,364
Telecommunications — 4.1%*:
Altice Luxembourg SA+		6.25			2/15/2025		100,000		113,593		117,585
Sprint Communications, Inc.		7.00			8/15/2020		75,000		74,357		79,500
Sprint Corp.		7.88			9/15/2023		452,000		437,090		481,380
Telecom Italia SpA/Milano+		5.88			5/19/2023		100,000		151,790		157,672
UPCB Finance IV Ltd.+		4.00			1/15/2027		100,000		108,320		127,058
Ziggo Bond Finance BV+		4.63			1/15/2025		100,000		103,687		123,566
Total Telecommunications							927,000		988,837		1,086,761

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Utilities — 0.5%*:
Viridian Group Finance Co. PLC+		4.75	%		9/15/2024		100,000	$	132,000	$	133,565
Total Corporate Bonds							24,344,000		25,312,014		25,632,091
Total Fixed Income							24,893,016		25,851,068		26,141,886
Short-Term Investments — 0.3%*:
Bank Deposit — 0.3%*:
State Street Bank & Trust Co. Euro Time Deposit		0.12			1/2/2018		86,325		86,325		86,325
Total Investments							24,979,341		25,937,393		26,228,211
Other assets and liabilities — 1.0%*											270,273
Net Assets — 100.0%											$26,498,484

MTN Medium Term Note

‡‡ 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	75.4%
United Kingdom	12.0%
Ghana	2.7%
France	1.9%
Canada	1.8%
Switzerland	1.7%
Other (Individually less than 1%)	4.5%
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 December 31, 2017. 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).

~ Defaulted security.

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

A summary of outstanding derivatives at December 31, 2017 is as follows:

Forward Foreign Currency Exchange Contracts to Buy

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION
1/8/18	Goldman Sachs & Co.		EUR	6,796		8,157		8,090	$	67

Forward Foreign Currency Exchange Contracts to Sell

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
1/8/18	Bank of America N.A.		EUR	1,817,190		2,181,003		2,171,475	$	(9,528	)
1/8/18	Goldman Sachs & Co.		GBP	2,636,471		3,560,180		3,568,698		8,518
Net unrealized depreciation on forward foreign currency exchange contracts to sell									$	(1,010	)

Currency Legend

EUR	–	Euro
GBP	–	British Pound Sterling

See accompanying Notes to the Financial Statements.

168

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SCHEDULE OF INVESTMENTS

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 96.3%*:
Bank Loans — 2.5%*§:
Beverage, Food and Tobacco — 0.1%*:
Del Monte Foods, Inc., 3M LIBOR + 3.250%		4.70	%		2/18/2021		46,056		$42,033		$36,582
Healthcare, Education and Childcare — 0.8%*:
Centene Corp., 3M LIBOR + 3.500%¤		5.19			9/13/2018		250,000		250,000		249,375
Mining, Steel, Iron and Non-Precious Metals — 0.4%*:
Murray Energy Corp., 3M LIBOR + 7.250%		8.94			4/16/2020		148,807		143,698		130,578
Oil and Gas — 1.2%*:
Fieldwood Energy LLC PIK, 3M LIBOR + 7.000%		8.69			8/31/2020		172,215		159,474		154,994
Fieldwood Energy LLC PIK, 3M LIBOR + 7.125%		8.82			9/30/2020		364,000		225,813		150,438
Gulf Finance LLC, 3M LIBOR + 5.250%		6.95			8/25/2023		104,153		103,323		93,260
Total Oil and Gas							640,368		488,610		398,692
Total Bank Loans							1,085,231		924,341		815,227
Corporate Bonds — 93.8%*:
Aerospace and Defense — 1.9%*:
TransDigm, Inc.		6.38			6/15/2026		307,000		304,473		310,070
Triumph Group, Inc.		4.88			4/1/2021		43,000		41,596		42,248
Triumph Group, Inc.^		7.75			8/15/2025		250,000		250,000		265,312
Total Aerospace and Defense							600,000		596,069		617,630
Automobile — 3.6%*:
Allison Transmission, Inc.^		4.75			10/1/2027		247,000		247,000		248,544
Allison Transmission, Inc.^		5.00			10/1/2024		176,000		176,000		181,500
Gates Global LLC/Gates Global Co.^		6.00			7/15/2022		25,000		20,458		25,563
International Automotive Components Group SA^		9.13			6/1/2018		170,000		170,299		168,300
JB Poindexter & Co., Inc.^		9.00			4/1/2022		329,000		342,415		341,337
Wabash National Corp.^		5.50			10/1/2025		204,000		204,000		205,530
Total Automobile							1,151,000		1,160,172		1,170,774
Beverage, Food and Tobacco — 3.1%*:
Carrols Restaurant Group, Inc.		8.00			5/1/2022		260,000		271,357		273,650
JBS USA LUX SA/JBS USA Finance, Inc.^		5.88			7/15/2024		165,000		169,351		159,431
JBS USA LUX SA/JBS USA Finance, Inc.^		8.25			2/1/2020		135,000		136,790		135,405
KeHE Distributors LLC/KeHE Finance Corp.^		7.63			8/15/2021		203,000		200,846		203,508
Pilgrim’s Pride Corp.^		5.88			9/30/2027		225,000		225,000		231,750
Total Beverage, Food and Tobacco							988,000		1,003,344		1,003,744
Broadcasting and Entertainment — 6.2%*:
Block Communications, Inc.^		6.88			2/15/2025		434,000		434,000		454,615
CCO Holdings LLC/CCO Holdings Capital Corp.^		5.00			2/1/2028		124,000		122,169		120,590

See accompanying Notes to the Financial Statements.

169

Barings U.S. High Yield Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Broadcasting and Entertainment (Continued)
CCO Holdings LLC/CCO Holdings Capital Corp.^		5.75	%		2/15/2026		500,000	$	500,000	$	519,375
Clear Channel Worldwide Holdings, Inc.		7.63			3/15/2020		275,000		272,359		269,219
DISH DBS Corp.		7.75			7/1/2026		316,000		316,000		332,195
Sirius XM Radio, Inc.^		5.00			8/1/2027		350,000		350,000		350,875
Total Broadcasting and Entertainment							1,999,000		1,994,528		2,046,869
Buildings and Real Estate — 5.5%*:
Beacon Escrow Corp.^		4.88			11/1/2025		250,000		250,000		250,937
Brookfield Residential Properties, Inc.^		6.50			12/15/2020		250,000		249,613		255,000
Century Communities, Inc.		5.88			7/15/2025		250,000		249,704		251,250
Jeld-Wen, Inc.^		4.63			12/15/2025		69,000		69,000		69,518
Jeld-Wen, Inc.^		4.88			12/15/2027		118,000		118,000		119,180
M/I Homes, Inc.		6.75			1/15/2021		250,000		250,000		258,750
MPT Operating Partnership LP/MPT Finance Corp.		5.00			10/15/2027		300,000		300,000		305,625
Standard Industries, Inc.^		4.75			1/15/2028		300,000		300,000		300,693
Total Buildings and Real Estate							1,787,000		1,786,317		1,810,953
Cargo Transport — 4.6%*:
American Airlines Group, Inc.^		4.63			3/1/2020		250,000		249,343		254,062
American Airlines Group, Inc.^		5.50			10/1/2019		282,000		286,101		289,755
Deck Chassis Acquisition, Inc.^		10.00			6/15/2023		454,000		463,427		505,075
Kenan Advantage Group, Inc.^		7.88			7/31/2023		450,000		463,090		465,750
Total Cargo Transport							1,436,000		1,461,961		1,514,642
Chemicals, Plastics and Rubber — 4.6%*:
A Schulman, Inc.		6.88			6/1/2023		237,000		246,058		246,480
Chemours Co. (The)		5.38			5/15/2027		156,000		154,589		161,460
Chemours Co. (The)		7.00			5/15/2025		254,000		257,601		275,590
Consolidated Energy Finance SA^		6.88			6/15/2025		300,000		298,580		318,000
LBC Tank Terminals Holding Netherlands BV^		6.88			5/15/2023		250,000		242,442		260,313
Platform Specialty Products Corp.^		5.88			12/1/2025		250,000		248,050		248,125
Total Chemicals, Plastics and Rubber							1,447,000		1,447,320		1,509,968
Containers, Packaging and Glass — 2.2%*:
Coveris Holdings SA^		7.88			11/1/2019		712,000		688,649		706,660
Diversified/Conglomerate Manufacturing — 1.7%*:
Appvion, Inc.^~		9.00			6/1/2020		366,000		239,223		54,900
EnPro Industries, Inc.		5.88			9/15/2022		220,000		221,596		229,075
StoneMor Partners LP/Cornerstone Family Services of West Virginia Subsidiary		7.88			6/1/2021		150,000		153,758		147,000
Teleflex, Inc.		4.63			11/15/2027		119,000		119,000		120,017
Total Diversified/Conglomerate Manufacturing							855,000		733,577		550,992

See accompanying Notes to the Financial Statements.

170

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Diversified/Conglomerate Service — 5.5%*:
APTIM Corp.^		7.75	%		6/15/2025		203,000	$	203,000	$	193,865
Carlson Travel, Inc.^		6.75			12/15/2023		250,000		255,259		226,250
Carlson Travel, Inc.^		9.50			12/15/2024		350,000		350,000		281,750
KAR Auction Services, Inc.^		5.13			6/1/2025		300,000		300,000		307,500
Prime Security Services Borrower LLC/Prime Finance, Inc.^		9.25			5/15/2023		250,000		250,000		277,500
United Rentals North America, Inc.		4.63			10/15/2025		125,000		125,000		125,937
United Rentals North America, Inc.		4.88			1/15/2028		125,000		125,306		125,625
Zachry Holdings, Inc.^		7.50			2/1/2020		250,000		251,652		253,750
Total Diversified/Conglomerate Service							1,853,000		1,860,217		1,792,177
Electronics — 2.0%*:
Dell, Inc.		6.50			4/15/2038		133,000		136,312		135,327
RP Crown Parent LLC^		7.38			10/15/2024		96,000		96,000		100,560
TIBCO Software, Inc.^		11.38			12/1/2021		384,000		416,631		418,322
Total Electronics							613,000		648,943		654,209
Finance — 4.7%*:
Aircastle Ltd.		5.00			4/1/2023		271,000		271,958		285,566
Aircastle Ltd.		5.50			2/15/2022		21,000		22,308		22,496
Icahn Enterprises LP/Icahn Enterprises Finance Corp.^		6.25			2/1/2022		135,000		138,988		138,038
Icahn Enterprises LP/Icahn Enterprises Finance Corp.^		6.38			12/15/2025		165,000		165,000		165,017
LPL Holdings, Inc.^		5.75			9/15/2025		400,000		400,000		407,000
Tempo Acquisition LLC/Tempo Acquisition Finance Corp.^		6.75			6/1/2025		210,000		210,000		212,100
Veritas US, Inc./Veritas Bermuda Ltd.^		10.50			2/1/2024		40,000		41,969		41,600
VFH Parent LLC/Orchestra Co-Issuer, Inc.^		6.75			6/15/2022		257,000		257,000		270,492
Total Finance							1,499,000		1,507,223		1,542,309
Grocery — 1.1%*:
C&S Group Enterprises LLC^		5.38			7/15/2022		174,000		171,946		163,995
Post Holdings, Inc.^		5.75			3/1/2027		200,000		200,000		203,500
Total Grocery							374,000		371,946		367,495
Healthcare, Education and Childcare — 7.7%*:
Avantor, Inc.^		9.00			10/1/2025		250,000		250,000		246,250
Catalent Pharma Solutions, Inc.^		4.88			1/15/2026		227,000		227,000		227,851
CHS/Community Health Systems, Inc.		6.25			3/31/2023		142,000		142,000		127,800
Endo Ltd./Endo Finance LLC/Endo Finco, Inc.^		6.00			2/1/2025		200,000		181,127		155,000
HCA, Inc.		5.38			2/1/2025		375,000		380,302		388,125
inVentiv Group Holdings, Inc./inVentiv Health, Inc./inVentiv Health Clinical, Inc.^		7.50			10/1/2024		94,000		94,000		101,520

See accompanying Notes to the Financial Statements.

171

Barings U.S. High Yield Fund 2017 Semi-Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Healthcare, Education and Childcare (Continued)
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA^		6.63	%		5/15/2022		260,000	$	247,385	$	261,300
Valeant Pharmaceuticals International, Inc.^		5.50			3/1/2023		118,000		89,632		107,970
Valeant Pharmaceuticals International, Inc.^		5.88			5/15/2023		50,000		41,822		46,375
Valeant Pharmaceuticals International, Inc.^		6.13			4/15/2025		391,000		344,159		357,765
Valeant Pharmaceuticals International, Inc.^		6.50			3/15/2022		118,000		118,000		123,900
Valeant Pharmaceuticals International, Inc.^		7.00			3/15/2024		125,000		125,000		133,750
West Street Merger Sub, Inc.^		6.38			9/1/2025		250,000		250,000		250,625
Total Healthcare, Education and Childcare							2,600,000		2,490,427		2,528,231
Home and Office Furnishings, Housewares, and Durable Consumer Products — 1.2%*:
Louisiana-Pacific Corp.		4.88			9/15/2024		250,000		250,000		258,125
Mattel, Inc.^		6.75			12/31/2025		125,000		125,000		126,681
Total Home and Office Furnishings, Housewares, and Durable Consumer Products							375,000		375,000		384,806
Hotels, Motels, Inns and Gaming — 0.4%*:
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.^		5.25			5/15/2027		125,000		125,000		126,719
Insurance — 1.8%*:
Acrisure LLC/Acrisure Finance, Inc.^		7.00			11/15/2025		250,000		250,000		240,940
AssuredPartners, Inc.^		7.00			8/15/2025		139,000		139,335		138,305
York Risk Services Holding Corp.^		8.50			10/1/2022		220,000		202,107		214,500
Total Insurance							609,000		591,442		593,745
Leisure, Amusement, Entertainment — 3.8%*:
AMC Entertainment Holdings, Inc.		5.88			11/15/2026		250,000		250,000		246,250
Brunswick Corp.		7.13			8/1/2027		567,000		600,882		678,755
WMG Acquisition Corp.^		5.00			8/1/2023		160,000		160,000		165,600
WMG Acquisition Corp.^		6.75			4/15/2022		150,000		150,872		156,750
Total Leisure, Amusement, Entertainment							1,127,000		1,161,754		1,247,355
Machinery Non-Agriculture, Non-Construction, Non-Electronic — 0.6%*:
Apex Tool Group LLC^		7.00			2/1/2021		207,000		195,410		199,238
Mining, Steel, Iron and Non-Precious Metals — 7.0%*:
Allegheny Technologies, Inc.		5.95			1/15/2021		309,000		310,075		315,180
Alliance Resource Operating Partners LP/Alliance Resource Finance Corp.^		7.50			5/1/2025		328,000		332,669		348,500
ArcelorMittal		7.25			3/1/2041		197,000		229,589		249,205
Big River Steel LLC/BRS Finance Corp.^		7.25			9/1/2025		250,000		250,000		264,375
Hecla Mining Co.		6.88			5/1/2021		250,000		224,367		256,250
Kinross Gold Corp.+		5.95			3/15/2024		152,000		157,855		166,630

See accompanying Notes to the Financial Statements.

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December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Mining, Steel, Iron and Non-Precious Metals (Continued)
Kinross Gold Corp.		6.88	%		9/1/2041		99,000	$	98,515	$	111,994
Northwest Acquisitions ULC/Dominion Finco, Inc.+^		7.13			11/1/2022		83,000		82,167		85,697
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp.^		7.50			6/15/2025		250,000		246,491		261,250
Warrior Met Coal, Inc.^		8.00			11/1/2024		240,000		240,000		247,800
Total Mining, Steel, Iron and Non-Precious Metals							2,158,000		2,171,728		2,306,881
Oil and Gas — 15.5%*:
Chesapeake Energy Corp.^		8.00			1/15/2025		300,000		295,986		303,000
Citgo Holding, Inc.^		10.75			2/15/2020		341,000		343,834		365,722
Energy Transfer Equity LP		4.25			3/15/2023		250,000		250,000		248,125
EP Energy LLC/Everest Acquisition Finance, Inc.^		8.00			2/15/2025		248,000		248,000		181,040
EP Energy LLC/Everest Acquisition Finance, Inc.		9.38			5/1/2020		65,000		61,190		54,925
Ferrellgas LP/Ferrellgas Finance Corp.		6.75			1/15/2022		100,000		100,933		92,500
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp.		8.63			6/15/2020		600,000		594,613		511,500
Genesis Energy LP/Genesis Energy Finance Corp.		6.00			5/15/2023		100,000		$ 98,379		101,250
Genesis Energy LP/Genesis Energy Finance Corp.		6.75			8/1/2022		250,000		245,862		259,375
Hess Infrastructure Partners LP/Hess Infrastructure Partners Finance Corp.^		5.63			2/15/2026		250,000		250,000		258,125
Jonah Energy LLC/Jonah Energy Finance Corp.^		7.25			10/15/2025		348,000		349,005		350,610
Jupiter Resources, Inc.+^		8.50			10/1/2022		479,000		396,245		296,980
Kosmos Energy Ltd.^		7.88			8/1/2021		377,000		358,913		385,482
NGPL PipeCo LLC^		4.38			8/15/2022		56,000		56,000		56,945
NGPL PipeCo LLC^		4.88			8/15/2027		65,000		65,000		67,438
PBF Holding Co. LLC/PBF Finance Corp.		7.25			6/15/2025		250,000		246,065		262,500
Rowan Cos., Inc.		7.38			6/15/2025		188,000		188,000		191,290
SM Energy Co.		6.50			1/1/2023		227,000		177,862		231,540
Suburban Propane Partners LP/Suburban Energy Finance Corp.		5.88			3/1/2027		300,000		300,000		293,250
Sunoco LP/Sunoco Finance Corp.		6.25			4/15/2021		250,000		250,000		259,875
Transocean, Inc.		6.80			3/15/2038		51,000		40,849		40,928
Transocean, Inc.		9.35			12/15/2041		38,000		35,357		36,765
Welltec A/S+^		9.50			12/1/2022		250,000		247,601		251,250
Total Oil and Gas							5,383,000		5,199,694		5,100,415
Personal Transportation — 1.3%*:
Hertz Corp. (The)^		7.63			6/1/2022		250,000		250,000		261,875
Watco Cos. LLC/Watco Finance Corp.^		6.38			4/1/2023		173,000		173,327		179,055
Total Personal Transportation							423,000		423,327		440,930

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Retail Stores — 0.8%*:
Penske Automotive Group, Inc.		5.50	%		5/15/2026		250,000	$	250,000	$	253,675
Telecommunications — 6.2%*:
Altice Financing SA+^		6.63			2/15/2023		250,000		251,312		261,775
Altice Luxembourg SA+^		7.63			2/15/2025		225,000		239,303		215,438
SFR Group SA+^		6.00			5/15/2022		475,000		482,643		480,937
Sprint Communications, Inc.		7.00			8/15/2020		75,000		74,358		79,500
Sprint Corp.		7.88			9/15/2023		489,000		474,309		520,785
T-Mobile USA, Inc.		5.38			4/15/2027		200,000		200,000		213,250
Telecom Italia SpA+^		5.30			5/30/2024		250,000		262,669		266,875
Total Telecommunications							1,964,000		1,984,594		2,038,560
Utilities — 0.8%*:
NRG Energy, Inc.		7.25			5/15/2026		250,000		250,000		272,185
Total Corporate Bonds							30,785,000		30,478,642		30,781,162
Total Fixed Income							31,870,231		31,402,983		31,596,389
Short-Term Investments — 2.8%*:
Bank Deposit — 2.8%*:
State Street Bank & Trust Co. Euro Time Deposit		0.12			1/2/2018		907,987		907,987		907,987
Total Investments							32,778,218		32,310,970		32,504,376
Other assets and liabilities – 0.9%*											309,165
Net Assets – 100.0%											$32,813,541

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	92.4%
France	2.2%
Canada	1.7%
Ghana	1.2%
Other (Individually less than 1%)	2.5%
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.

See accompanying Notes to the Financial Statements.

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December 31, 2017 (Unaudited)

§ 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 December 31, 2017. 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).

~ Defaulted security.

See accompanying Notes to the Financial Statements.

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December 31, 2017 (Unaudited)

1. Organization

Barings Funds Trust (the “Trust”) was organized as a business trust under the laws of the Commonwealth of Massachusetts on May 3, 2013 and commenced operations on September 16, 2013. The Trust is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of December 31, 2017, the Trust consists of eight funds (separately, a “Fund” and collectively, the “Funds”): Barings Global Floating Rate Fund (“Global Floating Rate Fund”), Barings Global Credit Income Opportunities Fund (“Global Credit Income Opportunities Fund”), Barings Active Short Duration Bond Fund (“Active Short Duration Bond Fund”), Barings Total Return Bond Fund (“Total Return Bond Fund”), Barings Emerging Markets Debt Blended Total Return Fund (“Emerging Markets Debt Blended Total Return Fund”), Barings Emerging Markets Local Currency Debt Fund (“Emerging Markets Local Currency Debt Fund”), Barings Global High Yield Fund (“Global High Yield Fund”) and Barings U.S. High Yield Fund (“U.S. High Yield Fund”). Each Fund, other than Global Floating Rate Fund, Global Credit Income Opportunities Fund, Active Short Duration Bond Fund and Total Return Bond Fund, is a “non-diversified” investment company. Active Short Duration Bond Fund and Total Return Bond Fund commenced operations on July 8, 2015. Emerging Markets Debt Blended Total Return Fund commenced operations on October 21, 2015. Emerging Markets Local Currency Debt Fund commenced operations on December 8, 2015. Global High Yield Fund and U.S. High Yield Fund commenced operations on October 30, 2015.

Barings LLC (the “Adviser”), a wholly-owned indirect subsidiary of Massachusetts Mutual Life Insurance Company, is a registered investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”), and serves as investment adviser to the Funds.

Barings Global Advisers Limited (“BGA”), an indirect wholly-owned subsidiary of the Adviser, is a registered investment adviser under the Advisers Act and serves as a sub-adviser with respect to the Global Floating Rate Fund, Global Credit Income Opportunities Fund, Emerging Markets Debt Blended Total Return Fund and Global High Yield Fund European investments.

The primary investment objective of the Global Floating Rate Fund is to seek a high level of current income. The Global Floating Rate Fund seeks preservation of capital as

a secondary investment objective. The investment objective of the Global Credit Income Opportunities Fund is to seek an absolute return, primarily through current income and secondarily through capital appreciation. The investment objective of the Active Short Duration Bond Fund is to seek to achieve a high total rate of return primarily from current income while minimizing fluctuations in capital values by investing primarily in a diversified portfolio of short-term investment grade fixed income securities. The investment objective of the Total Return Bond Fund is to seek a superior total rate of return by investing in fixed income instruments. The investment objective of the Emerging Markets Debt Blended Total Return Fund is to seek to achieve maximum total return, consistent with preservation of capital and prudent investment management, through high current income generation and, where appropriate, capital appreciation. The investment objective of the Emerging Markets Local Currency Debt Fund is to seek long-term total return through investment in a diversified portfolio of emerging markets local currency denominated debt securities. The investment objective of the Global High Yield Fund is to seek to provide high current income generation and, where appropriate, capital appreciation. The investment objective of the U.S. High Yield Fund is to seek to achieve a high level of total return, with an emphasis on current income, by investing primarily in high yield debt and related securities.

There can be no assurance that the Funds will achieve their investment objectives. Under normal market conditions, the Global Floating Rate Fund invests at least 80% of its net assets (including the amount of any borrowings for investment purposes) in income producing floating rate debt securities, consisting of floating rate loans, bonds and notes, issued primarily by North American and Western European companies that are primarily, at the time of purchase, rated below-investment grade (below Baa3 by Moody’s Investors Service, Inc. (“Moody’s”) or below BBB- by either Standard & Poor’s Rating Services, a division of the McGraw-Hill Company, Inc. (“S&P”) or Fitch, Inc. (“Fitch”)) or, if unrated, determined by the Adviser or BGA to be of comparable quality. Under normal market conditions, the Global Credit Income Opportunities Fund invests at least 80% of its net assets (including the amount of any borrowings for investment purposes) in debt instruments, consisting of loans, bonds and notes. Investments may be, based in U.S. and non-U.S. markets, as well as over-the-counter and exchange traded derivatives.

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December 31, 2017 (Unaudited)

Investments may be issued or guaranteed by governments and their agencies, corporations, financial institutions and supranational organizations that the Adviser believes have the potential to provide a high total return over time. A significant portion of the Global Floating Rate Fund and Global Credit Income Opportunities Fund’s investments in debt instruments will be denominated in a currency other than the U.S. dollar. Although the investments in non-U.S. dollar denominated assets may be on a currency hedged or unhedged basis, the Global Floating Rate Fund and Global Credit Income Opportunities Fund expect that, under current market conditions, they will seek to hedge substantially all of their exposure to foreign currencies. Under normal market conditions, the Active Short Duration Bond Fund invests at least 80% of its net assets (including the amount of any borrowings for investment purposes) in investment grade fixed income securities (rated Baa3 or higher by Moody’s or BBB- or higher by S&P or Fitch or if unrated, determined to be of comparable quality by the Adviser). These typically include U.S. dollar-denominated corporate obligations, securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, U.S. and foreign issuer dollar-denominated bonds including, but not limited to, corporate obligations, government and agency issues, private placement bonds, securities subject to resale pursuant to Rule 144A, mortgage-backed, and other asset-backed securities. Under normal market conditions, the Total Return Bond Fund invests at least 80% of its net assets (including the amount of any borrowings for investment purposes) in fixed income securities. These typically include: U.S. dollar denominated corporate obligations and bank loans, securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, U.S. and foreign issuer dollar denominated bonds including, but not limited to, corporate obligations, government and agency issues, private placement bonds, securities subject to resale pursuant to Rule 144A, convertible bonds, mortgage-backed, and other asset-backed securities. Under normal market conditions, the Emerging Markets Debt Blended Total Return Fund will invest at least 80% of its net assets (including the amount of any borrowings for investment purposes) in (i) securities denominated in currencies of the emerging market countries, (ii) fixed income securities or debt instruments issued by emerging market entities or sovereign nations, and/or (iii) debt instruments denominated in or based on the currencies, interest rates, or issues of emerging market countries. Emerging market countries are defined

to include any country that did not become a member of the Organization for Economic Cooperation and Development (O.E.C.D.) prior to 1975 and Turkey. Certain emerging market countries are referred to as “frontier” market countries. The Emerging Markets Debt Total Return Fund will likely focus its investments in Asia, Africa, the Middle East, Latin America and the developing countries of Europe. Under normal market conditions, the Emerging Markets Local Currency Debt Fund invests at least 80% of its net assets (including the amount of any borrowings for investment purposes) in local currency-denominated debt instruments issued by emerging markets governments, and their quasi sovereign agencies (including supranational and sub-national government issuers). The Adviser will select the Fund’s country and currency composition based on its evaluation of relative interest rates, inflation rates, exchange rates, monetary and fiscal policies, trade and current account balances, legal and political developments, and any other specific factors the Adviser believes to be relevant. The Emerging Markets Local Currency Debt Fund will likely focus its investments in Asia, Africa, the Middle East, Latin America and the developing countries of Europe. Under normal conditions, the Global High Yield Fund will invest at least 80% of its net assets (including the amount of any borrowing for investment purposes) in below investment grade (“high yield”) fixed and floating rate corporate debt securities including bonds, notes and other fixed and floating rate income securities issued primarily by North American and Western European companies. For this purpose, debt instruments issued by issuers based in the Channel Islands, Cayman Islands and Bermuda will be considered North American and Western European companies. Such debt securities may be secured or unsecured, and, either senior or subordinated. Secured debt means that collateral has been pledged as security against default, while investors in senior debt instruments are legally entitled to be repaid ahead of investors in subordinated (i.e. non-senior) instruments issued by the same corporation. Derivative instruments that provide exposure to such high yield debt securities or have similar economic characteristics may be used to satisfy the Fund’s 80% policy. The Adviser expects that such instruments will primarily, at the time of purchase, be rated below investment grade (commonly referred to as “junk bonds”) by at least one credit rating agency (below Baa3 by Moody’s or below BBB- by either S&P, or Fitch) or, if unrated, determined by the Adviser or BGA, to be of comparable quality. The Global High Yield Fund may invest in high yield securities of any rating, including

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December 31, 2017 (Unaudited)

securities that are in default at the time of purchase. Under normal circumstances, the U.S. High Yield Fund invests at least 80% of its net assets (including the amount of any borrowings for investment purposes) in lower rated fixed income securities (rated below Baa3 by Moody’s or BBB- by either S&P or Fitch (using the lower rating) or, if unrated, determined by the Adviser to be of comparable quality), and at least 80% of its net assets (including the amount of any borrowings for investment purposes) in securities of U.S. issuers. The U.S. High Yield Fund may also invest in convertible securities, preferred stocks, warrants, bank loans, and other fixed income securities, including Rule 144A securities, of both U.S. and foreign issuers. Currently, the Adviser does not expect that the U.S. High Yield Fund will invest more than 20% of its total assets in bank loans. The U.S. High Yield Fund may invest up to 15% of its total assets in securities that are not denominated in U.S. dollars including, but not limited to, corporate bonds, government and agency issues, Rule 144A securities, convertible securities, bank loans, mortgage-backed, and asset-backed securities.

Each Fund has four classes of shares: Class A, C, I, and Y, each with different expenses and dividends. With the exception of Active Short Duration Bond Fund, which has no sales charge on any class, a front-end sales charge is normally added to the net asset value (“NAV”) for Class A shares. There is no front-end sales charge in the case of Class C, I, and Y shares. There may be a contingent deferred sales charge (“CDSC”) in certain cases as follows: Class A shares purchased without an initial sales charge and redeemed within the first 18 months of purchase (subject to certain exceptions as set forth in each Fund’s prospectus) and Class C shares redeemed within the first year of purchase. All classes of shares have equal voting rights, with the exception of matters that relate solely to one class.

2. Significant Accounting Policies

The Trust is an investment company and follows accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 (“ASC 946”).

The following is a summary of significant accounting policies followed consistently by the Funds in the preparation of their financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

A. Valuation of Investments

The Funds’ investments in fixed income securities are generally valued using the prices provided directly by independent third party services or provided directly from one or more broker dealers or market makers, each in accordance with the valuation policies and procedures approved by the Funds’ Board of Trustees (the “Board”).

The pricing services may use valuation models or matrix pricing, which consider yield or prices with respect to comparable bond quotations from bond dealers or by reference to other securities that are considered comparable in such characteristics as credit rating, interest rates and maturity date to determine the current value. The Funds’ investments in bank loans are normally valued at the bid quotation obtained from dealers in loans by an independent pricing service in accordance with the Funds’ valuation policies and procedures approved by the Board. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value. Derivative financial instruments, such as futures contracts or options contracts that are traded on a national securities exchange, are stated at the last reported sale or settlement price on the day of valuation. Futures traded on inactive markets are valued using broker quotations. OTC derivative financial instruments, such as foreign currency contracts, options contracts, or swaps agreements, derive their value from underlying asset prices, indices, reference rates, and other inputs or a combination of these factors. These contracts are normally valued on the basis of an independent pricing service providers or broker dealer quotations. Depending on the derivative type and the terms of the derivative, the value of the derivative financial instruments is assigned by independent pricing service providers using a series of techniques, which may include pricing models. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, curves, volatilities, dividends and exchange rates.

The assets and liabilities shown in the Statements of Assets and Liabilities related to investments purchased for “to-be-announced” (“TBA”) or when-issued securities approximate fair value and are determined using Level 2 inputs, as of December 31, 2017. The assets and liabilities shown in the Statements of Assets and Liabilities related to cash collateral held at broker for futures contracts are determined using Level 1 inputs as of December 31, 2017.

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December 31, 2017 (Unaudited)

A Valuation Committee, made up of officers of the Trust and employees of the Adviser, is responsible for determining, in accordance with the Funds’ valuation policies and procedures approved by the Board; (1) whether market quotations are readily available for investments held by the Fund; and (2) the fair value of investments held by the Fund for which market quotations are not readily available or are deemed not reliable by the Adviser. In certain cases, authorized pricing service vendors may not provide prices for a security held by the Funds, or the price provided by such pricing service vendor is deemed unreliable by the Adviser. In such cases, the Funds may use market maker quotations provided by an established market maker for that security (i.e., broker quotes) to value the security if the Adviser has experience obtaining quotations from the market maker and the Adviser determines that quotations obtained from the market maker in the past have generally been reliable (or, if the Adviser has no such experience with respect to a market maker, it determines based on other information available to it that quotations to be obtained by it from the market maker are reasonably likely to be reliable). In any such case, the Adviser will review any market quotations so obtained in light of other information in its possession for their general reliability.

Bond investments are valued on the basis of last available bid prices or current market quotations provided by dealers or pricing services. Bank loan positions are valued at the bid price from one or more brokers or dealers as obtained from a pricing service. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures. Asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche-specific spread to the benchmark yield based on the unique attributes of the tranche.

Bank loans in which the Funds may invest have similar risks to lower-rated fixed income securities. Changes in the financial condition of the borrower or economic conditions or other circumstances may reduce the capacity of the borrower to make principal and interest payments on such instruments and may lead to defaults.

Senior secured bank loans are supported by collateral; however, the value of the collateral may be insufficient to cover the amount owed to the Funds. By relying on a third party to administer a loan, the Funds are subject to the risk that the third party will fail to perform its obligations. The loans in which the Funds will invest are largely floating rate instruments; therefore, the interest rate risk generally is lower than for fixed-rate debt obligations. However, from the perspective of the borrower, an increase in interest rates may adversely affect the borrower’s financial condition. Due to the unique and customized nature of loan agreements evidencing loans and the private syndication thereof, loans are not as easily purchased or sold as publicly traded securities. Although the range of investors in loans has broadened in recent years, there can be no assurance that future levels of supply and demand in loan trading will provide the degree of liquidity which currently exists in the market. In addition, the terms of the loans may restrict their transferability without borrower consent. These factors may have an adverse effect on the market price and the Funds’ ability to dispose of particular portfolio investments. A less liquid secondary market also may make it more difficult for the Funds to obtain precise valuations of the high yield loans in its portfolio.

The Funds may invest in collateralized debt obligations (“CDOs”), which include collateralized bond obligations (“CBOs”) and collateralized loan obligations (“CLOs”). CBOs and CLOs are types of asset-backed securities. A CDO is an entity that is backed by a diversified pool of debt securities (CBOs) or syndicated bank loans (CLOs). The cash flows of the CDO can be split into multiple segments, called “tranches,” which will vary in risk profile and yield. The riskiest segment is the subordinated or “equity” tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CDO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a “senior” tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive investment grade ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.

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December 31, 2017 (Unaudited)

Fair value is defined as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy is utilized to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. For example, market participants would consider the risk inherent in a particular valuation technique used to measure fair value, such as a pricing model, and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 1 – quoted prices in active markets for identical securities

Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The following is a summary of the inputs used as of December 31, 2017 in valuing the Funds’ investments:

Global Floating Rate Fund

DESCRIPTION	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL INVESTMENTS
Assets:*
Equities:
Common Stocks	$	–	$	26,540	$	101,217	$	127,757
Preferred Stock		–		–		236,280		236,280
Total Equities		–		26,540		337,497		364,037
Fixed Income:
Bank Loans		–		176,160,756		193,008		176,353,764
Corporate Bonds		–		17,350,595		–		17,350,595
Total Fixed Income		–		193,511,351		193,008		193,704,359
Short-Term Investments:
Bank Deposit		–		20,524,938		–		20,524,938
Derivative Securities:
Forward Foreign Currency Exchange Contracts		–		13,444		–		13,444
Total	$	–	$	214,076,273	$	530,505	$	214,606,778

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Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

DESCRIPTION	LEVEL 1		LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Liabilities:*
Derivative Securities:
Forward Foreign Currency Exchange Contracts	$	–	$	(379,471	)	$	–	$	(379,471	)
Total Investments	$	–	$	213,696,802		$	530,505	$	214,227,307

* There were no transfers between levels during the period ended December 31, 2017.

The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of December 31, 2017:

TYPE OF ASSETS	FAIR VALUE AS OF DECEMBER 31, 2017		VALUATION TECHNIQUE(S)	UNOBSERVABLE INPUT
Equities.
Tunstall Group Holdings Ltd	$	–	Zero Value	Valued at zero without primary asset attached
Tunstall Group Holdings Ltd	$	–	Zero Value	Valued at zero without primary asset attached
Boomerang Tube LLC	$	–	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5.5x; EBITDA: $38.8 million; Discount Rate 10%
Sabine Oil & Gas LLC	$	17,415	Broker Quote	Price source depth of 1
Sabine Oil & Gas LLC	$	7,995	Broker Quote	Price source depth of 1
Sabine Oil & Gas LLC	$	1,205	Broker Quote	Price source depth of 1
Templar Energy LLC	$	22,783	Broker Quote	Price source depth of 1
Templar Energy LLC	$	51,819	Broker Quote	Price source depth of 1
Pinnacle Agriculture Holdings A 2	$	236,280	Discounted Cash Flow	Adjusted Enterprise Valuation Multiple: 8.51x; EBITDA; $111.1m
Bank Loans
Boomerang Tube LLC	$	32,825	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5.5x; EBITDA: $38.8 million; Discount Rate 10%
Boomerang Tube LLC	$	111,754	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5.5x; EBITDA: $38.8 million; Discount Rate 10%
Boomerang Tube LLC	$	10,509	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5.5x; EBITDA: $38.8 million; Discount Rate 10%
Boomerang Tube LLC	$	37,920	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5.5x; EBITDA: $38.8 million; Discount Rate 10%

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

181

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

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, 2017		REALIZED GAIN (LOSS)		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)			NET TRANSFERS IN (OUT) OF LEVEL 3		ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES		BALANCE AS OF DECEMBER 31, 2017		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT DECEMBER 31, 2017
Equities
Common Stock	$	127,521	$	–	$	(26,304	)	$	–	$	–	$	–	$	–	$	101,217	$	(26,304	)
Preferred Stock	$	218,582	$	–	$	15,229		$	–	$	–	$	2,469	$	–	$	236,280	$	15,229
Fixed Income
Bank Loans	$	179,744	$	–	$	(8,378	)	$	–	$	349	$	21,293	$	–	$	193,008	$	(8,378	)
Corporate Bonds	$	–	$	–	$	–		$	–	$	–	$	–	$	–	$	–	$	–
Total	$	525,847	$	–	$	(19,453	)	$	–	$	349	$	23,762	$	–	$	530,505	$	(19,453	)

Global Credit Income Opportunities Fund

DESCRIPTION	LEVEL 1		LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Assets:*
Equities:
Common Stocks	$	–	$	20,518		$	565,734	$	586,252
Preferred Stock		–		–			283,535		283,535
Total Equities		–		20,518			849,269		869,787
Fixed Income:
Asset-Backed Securities		–		23,731,890			1,500,000		25,231,890
Bank Loans		–		57,925,262			263,946		58,189,208
Corporate Bonds		–		78,173,138			–		78,173,138
Total Fixed Income		–		159,830,290			1,763,946		161,594,236
Purchased Option:
Put Option Purchased		–		276,000			–		276,000
Short-Term Investments:
Bank Deposit		–		16,079,779			–		16,079,779
Derivative Securities:
Forward Foreign Currency Exchange Contracts		–		4,297			–		4,297
Total	$	–	$	176,210,884		$	2,613,215	$	178,824,099
Liabilities:*
Derivative Securities:
Forward Foreign Currency Exchange Contracts		–		(288,389	)		–		(288,389	)
Total Investments	$	–	$	175,922,495		$	2,613,215	$	178,535,710

* There were no transfers between levels during the period ended December 31, 2017.

182

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of December 31, 2017:

TYPE OF ASSETS	FAIR VALUE AS OF DECEMBER 31, 2017		VALUATION TECHNIQUE(S)	UNOBSERVABLE INPUT
Equities
Boomerang Tube LLC	$	–	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5.5x; EBITDA: $38.8 million; Discount Rate 10%
Maxeda DIY B.V.	$	452,580	Discounted Cash Flow	Average Comparable Valuation 6.5x; EBITDA €97m; net debt €420m
Maxeda DIY B.V.	$	113,154	Discounted Cash Flow	Average Comparable Valuation 6.5x; EBITDA €97m; net debt €420m
Pinnacle Agriculture Holdings A 2	$	283,535	Discounted Cash Flow	Adjusted Enterprise Valuation Multiple: 8.51x; EBITDA; $111.1m
Asset-Backed Securities
AIMCO CLO Series 2015-AA ER	$	500,000	Broker Quote	Price source depth of 1
Wellfleet CLO Ltd. 2017-3A D	$	1,000,000	Broker Quote	Price source depth of 1
Bank Loans
Boomerang Tube LLC	$	27,865	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5.5x; EBITDA: $38.8 million; Discount Rate 10%
Boomerang Tube LLC	$	75,898	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5.5x; EBITDA: $38.8 million; Discount Rate 10%
Boomerang Tube LLC	$	37,920	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5.5x; EBITDA: $38.8 million; Discount Rate 10%
Boomerang Tube LLC	$	10,509	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5.5x; EBITDA: $38.8 million; Discount Rate 10%
Boomerang Tube LLC	$	111,754	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5.5x; EBITDA: $38.8 million; Discount Rate 10%

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

183

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

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, 2017		REALIZED GAIN (LOSS)		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)			NET TRANSFERS IN (OUT) OF LEVEL 3		ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES			BALANCE AS OF DECEMBER 31, 2017		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT DECEMBER 31, 2017
Equities
Common Stock	$	538,528	$	–	$	27,206		$	–	$	–	$	–	$	–		$	565,734	$	27,206
Preferred Stock	$	262,298	$	–	$	18,359		$	–	$	–	$	2,878	$	–		$	283,535	$	18,359
Fixed Income
Asset Backed Securities	$	–	$	–	$	–		$	–	$	–	$	1,500,000	$	–		$	1,500,000	$	–
Bank Loans	$	1,618,268	$	–	$	(8,422	)	$	–	$	344	$	40,920	$	(1,387,164	)	$	263,946	$	(8,422	)
Total	$	2,419,094	$	–	$	37,143		$	–	$	344	$	1,543,798	$	(1,387,164	)	$	2,613,215	$	37,143

Active Short Duration Bond Fund

DESCRIPTION	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL INVESTMENTS
Assets:*
Fixed Income:
Asset-Backed Securities	$	–	$	124,978,081	$	5,040,219	$	130,018,300
Corporate Bonds		–		180,511,258		–		180,511,258
Mortgage-Backed Securities		–		3,777,413		–		3,777,413
U.S. Treasury & Government Agencies		–		13,070,080		–		13,070,080
Total Fixed Income		–		322,336,832		5,040,219		327,377,051
Purchased Options:
Call Option Purchased		–		543,938		–		543,938
Put Option Purchased		–		1,077,085		–		1,077,085
Total Purchased Options		–		1,621,023		–		1,621,023
Short-Term Investments:
Bank Deposit		–		239,949		–		239,949
Commercial Paper		–		91,203,844		–		91,203,844
Total Short-Term Investments		–		91,443,793		–		91,443,793
Derivative Securities:
Futures**		–		497,766		–		497,766
Total	$	–	$	415,899,414	$	5,040,219	$	420,939,633

184

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

DESCRIPTION	LEVEL 1		LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Liabilities:*
Derivative Securities:
Futures**	$	–	$	(174,432	)	$	–	$	(174,432	)
OTC — Credit Default Swaps		–		(76,086	)		–		(76,086	)
Total Derivative Securities		–		(250,518	)		–		(250,518	)
Total Investments	$	–	$	415,648,896		$	5,040,219	$	420,689,115

* There were no transfers between levels 1 and 2 during the period ended December 31, 2017.

** Centrally Cleared Swaps and Futures are valued at unrealized appreciation/depreciation. Only current day’s variation margin, if any, is reported on the Statement of Assets and Liabilities.

The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of December 31, 2017:

TYPE OF ASSETS	FAIR VALUE AS OF DECEMBER 31, 2017		VALUATION TECHNIQUE(S)	UNOBSERVABLE INPUT
Asset-Backed Securities
AccessLex Institute 2002-A A2	$	646,100	Broker Quote	Price source depth of 1
DRB Prime Student Loan Trust 2016-R A1	$	1,159,528	Broker Quote	Price source depth of 1
EdLinc Student Loan Funding Trust 2017-A A	$	1,936,440
SoFi Consumer Loan Program LLC 2015-A RC	$	600,000	Broker Quote	Price source depth of 1
SoFi Professional Loan Program 2017-D R1	$	698,151	Broker Quote	Price source depth of 1

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

The 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, 2017		REALIZED GAIN (LOSS)		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)			NET TRANSFERS IN (OUT) OF LEVEL 3			ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES			BALANCE AS OF DECEMBER 31, 2017		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT DECEMBER 31, 2017
Asset Backed Securities	$	5,241,812	$	7,797	$	(173,874	)	$	(2,394,587	)	$	8,645	$	2,634,590	$	(284,164	)	$	5,040,219	$	(173,874	)
Total	$	5,241,812	$	7,797	$	(173,874	)	$	(2,394,587	)	$	8,645	$	2,634,590	$	(284,164	)	$	5,040,219	$	(173,874	)

185

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

Total Return Bond Fund

DESCRIPTION	LEVEL 1		LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Assets:*
Fixed Income:
Asset-Backed Securities	$	—	$	8,465,483		$	297,939	$	8,763,422
Corporate Bonds		—		10,052,661			—		10,052,661
Foreign Government		—		256,500			—		256,500
Mortgage-Backed Securities		—		197,631			—		197,631
U.S. Treasury & Government Agencies		—		9,022,681			—		9,022,681
Total Fixed Income		—		27,994,956			297,939		28,292,895
Mutual Fund:
Mutual Fund		2,639,234		—			—		2,639,234
Purchased Options:
Call Option Purchased		—		61,734			—		61,734
Put Option Purchased		—		121,934			—		121,934
Total Purchased Options		—		183,668			—		183,668
Short-Term Investments:
Bank Deposit		—		362,022			—		362,022
Commercial Paper		—		4,194,304			—		4,194,304
Total Short-Term Investments		—		4,556,326			—		4,556,326
Derivative Securities:
Forward Foreign Currency Exchange Contracts		—		11,963			—		11,963
Futures**		—		6,080			—		6,080
Total Derivative Securities		—		18,043			—		18,043
Total	$	2,639,234	$	32,752,993		$	297,939	$	35,690,166
Liabilities:*
Derivative Securities:
Forward Foreign Currency Exchange Contracts		—		(10,487	)		—		(10,487	)
Futures**		—		(16,067	)		—		(16,067	)
OTC – Credit Default Swaps		—		(19,021	)		—		(19,021	)
Total Derivative Securities		—		(45,575	)		—		(45,575	)
Total Investments	$	2,639,234	$	32,707,418		$	297,939	$	35,644,591

* There were no transfers between levels 1 and 2 during the period ended December 31, 2017.

** Centrally Cleared Swaps and Futures are valued at unrealized appreciation/depreciation. Only current day’s variation margin, if any, is reported on the Statement of Assets and Liabilities.

186

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of December 31, 2017:

TYPE OF ASSETS	FAIR VALUE AS OF DECEMBER 31, 2017		VALUATION TECHNIQUE(S)	UNOBSERVABLE INPUT
Asset-Backed Securities
College Loan Corp. Trust 2017-1 B2	$	38,700	Broker Quote	Price source depth of 1
DRB Prime Student Loan Trust 2016-R A1	$	79,967	Broker Quote	Price source depth of 1
DRB Prime Student Loan Trust 2016-R A2	$	79,967	Broker Quote	Price source depth of 1
EdLinc Student Loan Funding Trust 2017-A A	$	99,305	Broker Quote	Price source depth of 1

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

The 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, 2017		REALIZED GAIN (LOSS)		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)		NET TRANSFERS IN (OUT) OF LEVEL 3			ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES			BALANCE AS OF DECEMBER 31, 2017		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT DECEMBER 31, 2017
Asset Backed Securities	$	410,163	$	2	$	1,234	$	(225,364	)	$	41	$	137,667	$	(25,804	)	$	297,939	$	1,234
Total	$	410,163	$	2	$	1,234	$	(225,364	)	$	41	$	137,667	$	(25,804	)	$	297,939	$	1,234

Emerging Markets Debt Blended Total Return Fund

DESCRIPTION	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL INVESTMENTS
Assets:*
Fixed Income:
Corporate Bonds	$	—	$	3,432,663	$	—	$	3,432,663
Foreign Government		—		7,544,111		—		7,544,111
Total Fixed Income		—		10,976,774		—		10,976,774
Short-Term Investments:
Bank Deposit		—		174,788		—		174,788
Derivative Securities:
OTC – Credit Default Swaps		—		7,150		—		7,150
Forward Foreign Currency Exchange Contracts		—		166,761		—		166,761
OTC – Interest Rate Swaps		—		8,497		—		8,497
Total Derivative Securities		—		182,408		—		182,408
Total	$	—	$	11,333,970	$	—	$	11,333,970

187

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

DESCRIPTION	LEVEL 1		LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Liabilities:*
Derivative Securities:
OTC – Cross Currency Swaps	$	—	$	(27,068	)	$	—	$	(27,068	)
Forward Foreign Currency Exchange Contracts		—		(234,829	)		—		(234,829	)
Futures**		—		(3,066	)		—		(3,066	)
OTC – Interest Rate Swaps		—		(37,040	)		—		(37,040	)
OTC – Credit Default Swaps		—		(6,195	)		—		(6,195	)
Total Derivative Securities		—		(308,198	)		—		(308,198	)
Total Investments	$	—	$	11,025,772		$	—	$	11,025,772

* There were no transfers between levels during the period ended December 31, 2017.

** Centrally Cleared Swaps and Futures are valued at unrealized appreciation/depreciation. Only current day’s variation margin, if any, is reported on the Statement of Assets and Liabilities.

Emerging Markets Local Currency Debt Fund

DESCRIPTION	LEVEL 1		LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Assets:*
Fixed Income:
Foreign Government	$	—	$	18,215,512		$	—	$	18,215,512
Total Fixed Income		—		18,215,512			—		18,215,512
Short-Term Investments:
Bank Deposit		—		1,885,090			—		1,885,090
Derivative Securities:
Forward Foreign Currency Exchange Contracts		—		247,402			—		247,402
OTC – Interest Rate Swaps		—		36,887			—		36,887
Total Derivative Securities		—		284,289			—		284,289
Total	$	—	$	20,384,891		$	—	$	20,384,891
Liabilities:*
Derivative Securities:
Centrally Cleared Credit Default Swaps**		—		(21,979	)		—		(21,979	)
Forward Foreign Currency Exchange Contracts		—		(359,744	)		—		(359,744	)
OTC – Interest Rate Swaps		—		(37,077	)		—		(37,077	)
Total Derivative Securities		—		(418,800	)		—		(418,800	)
Total Investments	$	—	$	19,966,091		$	—	$	19,966,091

* There were no transfers between levels during the period ended December 31, 2017.

** Centrally Cleared Swaps and Futures are valued at unrealized appreciation/depreciation. Only current day’s variation margin, if any, is reported on the Statement of Assets and Liabilities.

188

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

Global High Yield Fund

DESCRIPTION	LEVEL 1		LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Assets:*
Fixed Income:
Bank Loans	$	—	$	260,420		$	249,375	$	509,795
Corporate Bonds		—		25,632,091			—		25,632,091
Total Fixed Income		—		25,892,511			249,375		26,141,886
Short-Term Investments:
Bank Deposit		—		86,325			—		86,325
Derivative Securities:
Forward Foreign Currency Exchange Contracts		—		8,585			—		8,585
Total	$	—	$	25,987,421		$	249,375	$	26,236,796
Liabilities:*
Derivative Securities:
Forward Foreign Currency Exchange Contracts		—		(9,528	)		—		(9,528	)
Total Investments	$	—	$	25,977,893		$	249,375	$	26,227,268

* There were no transfers between levels during the period ended December 31, 2017.

The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of December 31, 2017:

TYPE OF ASSETS	FAIR VALUE AS OF DECEMBER 31, 2017		VALUATION TECHNIQUE(S)	UNOBSERVABLE INPUT
Bank Loans
Centene Corp.	$	249,375	Recent Transaction	Priced at cost until service priced

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

The 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, 2017		REALIZED GAIN (LOSS)		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)			NET TRANSFERS IN (OUT) OF LEVEL 3		ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES			BALANCE AS OF DECEMBER 31, 2017		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT DECEMBER 31, 2017
Fixed Income
Bank Loans	$	255,372	$	—	$	(625	)	$	—	$	—	$	250,000	$	(255,372	)	$	249,375	$	(625	)

189

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

U.S. High Yield Fund

DESCRIPTION	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL INVESTMENTS
Assets:*
Fixed Income:
Bank Loans	$	—	$	565,852	$	249,375	$	815,227
Corporate Bonds		—		30,781,162		—		30,781,162
Total Fixed Income		—		31,347,014		249,375		31,596,389
Short-Term Investments:
Bank Deposit		—		907,987		—		907,987
Total	$	—	$	32,255,001	$	249,375	$	32,504,376
Total Investments	$	—	$	32,255,001	$	249,375	$	32,504,376

* There were no transfers between levels during the period ended December 31, 2017.

The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of December 31, 2017:

TYPE OF ASSETS	FAIR VALUE AS OF DECEMBER 31, 2017		VALUATION TECHNIQUE(S)	UNOBSERVABLE INPUT
Bank Loans
Centene Corp.	$	249,375	Recent Transaction	Priced at cost until service priced

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

The 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, 2017		REALIZED GAIN (LOSS)		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)			NET TRANSFERS IN (OUT) OF LEVEL 3		ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES			BALANCE AS OF DECEMBER 31, 2017		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT DECEMBER 31, 2017
Fixed Income
Bank Loans	$	255,643	$	—	$	(625	)	$	—	$	—	$	250,000	$	(255,643	)	$	249,375	$	(625	)

B. When-Issued, Delayed-Delivery, Forward Commitment, and To-Be-Announced Transactions

The Funds may enter into when-issued, delayed-delivery, forward commitment, or TBA transactions (collectively, the “Forward Transactions”) in order to lock in the purchase price of the underlying security, or in order to

adjust the interest rate exposure of the Fund’s existing portfolio. In Forward Transactions, a Fund commits to purchase or sell particular securities, with payment and delivery to take place at a future date. In the case of TBA purchase commitments, the unit price and the estimated principal amount are established when the Fund enters

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into a commitment, with the actual principal amount being within a specified range of the estimate. Although a Fund does not typically pay for the securities in these types of transactions until they are delivered, it immediately assumes the risks of ownership, including the risk of price fluctuation. As a result, each of these types of transactions may create investment leverage in a Fund’s portfolio and increase the volatility of the Fund. If a Fund’s counterparty fails to deliver a security purchased in a Forward Transaction, there may be a loss, and the Fund may have missed an opportunity to make an alternative investment.

These securities are valued on the basis of valuations furnished by a pricing service, selected pursuant to procedures approved by the Trustees, which determines valuations taking into account appropriate factors such as institutional-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. Securities for which no market quotation is available are valued at fair value in accordance with procedures approved by the Trustees. The Funds record on a daily basis the unrealized appreciation (depreciation) based upon changes in the values of these securities. When a Forward Transaction is closed, the Funds record a realized gain or loss equal to the difference between the value of the transaction at the time it was opened and the value of the transaction at the time it was closed.

C. Cash and Short-Term Investments

Cash and cash equivalents consist principally of short-term investments that are readily convertible into cash and have original maturities of three months or less. At December 31, 2017, all cash and cash equivalents are held by the custodian.

D. Investment Transactions, Related Investment Income and Expenses

Investment transactions are accounted for on a trade date basis. Interest income is recorded on the accrual basis, including the amortization of premiums and accretion of discounts on bonds held using the yield-to-maturity method. Interest income from securitized investments in which the Fund(s) has/have a beneficial interest, such as the “equity” security class of a CLO vehicle (typically in the form of income or subordinated notes), are recorded upon receipt. The accrual of interest income related to these types of securities is periodically reviewed and adjustments are made as necessary. These cash inflows are regularly

reviewed to ensure these payments are not materially different from what would be required by GAAP reporting. Adjustments would be made if needed to address any changes.

Realized gains and losses on investment transactions and unrealized appreciation and depreciation of investments are reported for financial statement and Federal income tax purposes on the identified cost method.

Expenses are recorded on the accrual basis as incurred.

E. Redemption Fees

The Funds do not have redemption fees.

F. Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

G. Federal Income Taxation

The Funds have elected to be taxed as a Regulated Investment Company (“RIC”) under sub-chapter M of the U.S. Internal Revenue Code of 1986, as amended, and intend to maintain this qualification and to distribute substantially all of their net taxable income to their shareholders. As of December 31, 2017, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. The Funds file a U.S. federal income tax return annually after their fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of the filings.

H. Dividends and Distributions

Each Fund declares a dividend daily based on the Adviser’s projections of the Funds’ estimated net investment income and distributes such dividend monthly. To the extent that these distributions exceed net investment income, they may be classified as return of capital. The Funds also pay a distribution at least annually from their net realized capital gains, if any. Dividends and distributions are recorded on the ex-dividend date. All common shares have equal dividend and other distribution rights. A notice disclosing the source(s) of a distribution will be provided if payment is made from any source other than net investment

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income. Any such notice would be provided only for informational purposes in order to comply with the requirements of Section 19(a) of the 1940 Act and not for tax reporting purposes. The tax composition of the Funds’ distributions for each calendar year is reported on Internal Revenue Service Form 1099-DIV.

Dividends from net investment income and distributions from realized gains from investment transactions have been determined in accordance with Federal income tax regulations and may differ from net investment income and realized gains recorded by the Funds for financial reporting purposes. These differences, which could be temporary or permanent in nature may result in reclassification of distributions; however, net investment income, net realized gains and losses, and net assets are not affected.

I. Bank Loans

The Funds may invest in bank loans, which usually take the form of loan participations and assignments. Loan participations and assignments are agreements to make money available to U.S. or foreign corporations, partnerships or other business entities (the “Borrower”) in a specified amount, at a specified rate and within a specified time. A loan is typically originated, negotiated and structured by a U.S. or foreign bank, insurance company or other financial institution (the “Agent”) for a group of loan investors (“Loan Investors”). The Agent typically administers and enforces the loan on behalf of the other Loan Investors in the syndicate and may hold any collateral on behalf of the Loan Investors. Such loan participations and assignments are typically senior, secured and collateralized in nature. The Funds record an investment when the Borrower withdraws money and records interest as earned. These loans pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or London InterBank Offered Rate (“LIBOR”).

The loans in which the Funds invest may be subject to some restrictions on resale. For example, the Funds may be contractually obligated to receive approval from the Agent and/or Borrower prior to the sale of these investments. The Funds generally have no right to enforce compliance with the terms of the loan agreement with the Borrower. As a result, the Funds assume the credit risk of the Borrower, the selling participant and any other persons interpositioned between the Funds and the Borrower (“Intermediate

Participants”). In the event that the Borrower, selling participant or Intermediate Participants become insolvent or enter into bankruptcy, the Funds may incur certain costs and delays in realizing payment or may suffer a loss of principal and/or interest.

Unfunded commitments represent the remaining obligation of the Funds to the Borrower. At any point in time, up to the maturity date of the issue, the Borrower may demand the unfunded portion. Until demanded by the Borrower, unfunded commitments are not recognized as an asset on the Statements of Assets and Liabilities. Unrealized appreciation/depreciation on unfunded commitments presented on the Statements of Assets and Liabilities represents mark to market of the unfunded portion of the Funds’ bank loans. As of December 31, 2017, no Funds had unfunded loan commitments.

J. Derivative Instruments

The following is a description of the derivative instruments that the Funds utilize as part of their investment strategy, including the primary underlying risk exposures related to the instrument.

The Funds are subject to foreign currency exchange rate risk in the normal course of pursuing their investment objectives. The Funds may use forward foreign currency exchange contracts to hedge against changes in the value of foreign currencies. The Funds may enter into forward foreign currency exchange contracts obligating the Funds to deliver or receive a currency at a specified future date. Forward contracts are valued daily and unrealized appreciation or depreciation is recorded daily as the difference between the contract exchange rate and the closing forward rate applied to the face amount of the contract. A realized gain or loss is recorded at the time the forward contract expires. Credit risk may arise as a result of the failure of the counterparty to comply with the terms of the contract. The Funds consider the creditworthiness of each counterparty to a contract in evaluating potential credit risk quarterly. The Funds are also subject to credit risk with respect to the counterparties to derivative contracts that are not cleared through a central counterparty but instead are traded over-the-counter between two counterparties. If a counterparty to an over-the-counter derivative becomes bankrupt or otherwise fails to perform its obligations under a derivative contract due to financial difficulties, the Funds may experience significant delays in obtaining any recovery under the derivative contract in a bankruptcy or other

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reorganization proceeding. The Funds may obtain only a limited recovery or may obtain no recovery in such circumstances. The counterparty risk for cleared derivatives is generally lower than for uncleared over-the-counter derivative transactions since generally a clearing organization becomes substituted for each counterparty to a cleared derivative contract and, in effect, guarantees the parties’ performance under the contract as each party to a trade looks only to the clearing house for performance of financial obligations. However, there can be no assurance that the clearing house, or its members, will satisfy its obligations to the Funds. In addition, in the event of a bankruptcy of a clearing house, the Funds could experience a loss of the funds deposited with such clearing house as margin and of any profits on its open positions. The counterparty risk to the Funds is limited to the net unrealized gain, if any, on the contract.

The use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the Funds’ investment securities; however, it does establish a rate of exchange that can be achieved in the future. The use of forward foreign currency exchange contracts involves the risk that anticipated currency movements will not be accurately predicted. A forward foreign currency exchange contract would limit the risk of loss due to a decline in the value of a particular currency; however, it would also limit any potential gain that might result should the value of the currency increase instead of decrease. These contracts may involve market risk in excess of the amount of receivable or payable reflected on the Statement of Assets and Liabilities.

The Funds may purchase and sell futures contracts to enhance returns, to attempt to hedge some of its investment risk, or as a substitute position in lieu of holding the underlying asset on which the instrument is based. At the time of entering into a futures transaction, an investor is required to deposit and maintain a specified amount of cash or eligible securities called “initial margin.” Subsequent payments made or received by a Fund called “variation margin” are made on a daily basis as the market price of the futures contract fluctuates. Each Fund will record an unrealized gain (loss) based on the amount of variation margin. When a contract is closed, a realized gain (loss) is recorded equal to the difference between the opening and closing value of the contract.

The Funds may purchase call or put options. When a Fund purchases an option, the premium paid by the Fund is recorded as an asset and is subsequently adjusted to

the current fair value of the option purchased. Purchasing call options tends to increase the Fund’s exposure to the underlying instrument. Purchasing put options tends to decrease the Fund’s exposure to the underlying instrument. Premiums paid for purchasing options that expire are treated as realized losses. Premiums paid for purchasing options that are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying security to determine the realized gain or loss. The risks associated with purchasing put and call options are potential loss of the premium paid and, in the instances of over-the-counter derivatives, the failure of the counterparty to honor its obligation under the contract.

The Funds may enter into swap options (“swaptions”). A swaption is an option to enter into a pre-defined swap agreement by some specified date in the future. The writer of the swaption becomes the counterparty to the swap if the buyer exercises. The interest rate swaption agreement will specify whether the buyer of the swaption will be a fixed rate receiver or a fixed rate buyer. Depending on the terms of the particular option agreement, a Fund generally will incur a greater degree of risk when the Fund writes a swaption than the Fund will incur when it purchases a swaption. When a Fund purchases a swaption, the Fund’s risk of loss is limited to the amount of the premium it has paid should it decide to let the swaption expire unexercised.

When a Fund writes a covered call or a put option, an amount equal to the premium received by the Fund is included in the Fund’s Statement of Assets and Liabilities as an asset and as an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. The Fund receives a premium on the sale of a call option but gives up the opportunity to profit from any increase in stock value above the exercise price of the option, and when a Fund writes a put option, it is exposed to a decline in the price of the underlying security.

Whether an option which a Fund has written expires on its stipulated expiration date or a Fund enters into a closing purchase transaction, the Fund realizes a gain (or loss, if the cost of a closing purchase transaction exceeds the premium received when the option was sold) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a call option which a Fund has written is exercised, the Fund realizes a capital gain or loss from the sale of the underlying security, and the cost basis of the

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lots sold are decreased by the premium originally received. When a put option which a Fund has written is exercised, the amount of the premium originally received will reduce the cost of the security which the Fund purchases upon exercise of the option. Realized gains (losses) on purchased options are included in net realized gain (loss) from investments.

The Funds’ use of written options involves, to varying degrees, elements of market risk in excess of the amount recognized in the Statements of Assets and Liabilities. The face or contract amounts of these instruments reflect the extent of the Funds’ exposure to market risk. The risks may be caused by an imperfect correlation between movements in the price of the instrument and the price of the underlying securities, currencies and interest rates.

The Funds may enter into credit default swap contracts. As a seller of a credit default swap contract (“seller of protection”), a Fund is required to pay the notional amount or other agreed-upon value of a referenced debt obligation to the counterparty (or central clearing party in the case of centrally cleared swaps) in the event of a default by or other credit event involving the referenced issuer, obligation or index. In return, a Fund receives from the counterparty (or central clearing party in the case of centrally cleared swaps) a periodic stream of payments over the term of the contract.

As a purchaser of a credit default swap contract (“buyer of protection”), a Fund would receive the notional amount or other agreed upon value of a referenced debt obligation from the counterparty (or central clearing party in the case of centrally cleared swaps) in the event of default by or other credit event involving the referenced issuer, obligation or index. In return, a Fund would make periodic payments to the counterparty (or central clearing party in the case of centrally cleared swaps) over the term of the contracts, provided no event of default has occurred.

These credit default swaps may have as a reference obligation corporate or sovereign issuers or credit indices. These credit indices are comprised of a basket of securities representing a particular sector of the market. During the period, Active Short Duration Bond Fund and Total Return Bond Fund entered into credit default swaps based on a CMBX index, which is comprised of commercial mortgage-backed securities and a CDX index, which is comprised of North American and Emerging Market companies.

Credit default swaps are fair valued based upon quotations from counterparties, brokers or market-makers and the change in value, if any, is recorded as an unrealized appreciation or depreciation. For a credit default swap sold by a Fund, payment of the agreed-upon amount made by a Fund in the event of default of the referenced debt obligation is recorded as the cost of the referenced debt obligation purchased/received. For a credit default swap purchased by a Fund, the agreed-upon amount received by a Fund in the event of default of the referenced debt obligation is recorded as proceeds from sale/delivery of the referenced debt obligation and the resulting gain or loss realized on the referenced debt obligation is recorded as such by a Fund.

Any upfront payments made or received upon entering a credit default swap contract would be amortized or accreted over the life of the swap and recorded as realized gains or losses. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with the custodian bank or broker in accordance with the swap agreement. The value and credit rating of each credit default swap where a Fund is the seller of protection, are both measures of the current payment/performance risk of the swap. As the value of the swap changes as a positive or negative percentage of the total notional amount, the payment/performance risk may decrease or increase, respectively. The maximum potential amount of future payments (undiscounted) that a Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by a Fund for the same referenced entity or entities. For centrally cleared swaps, the daily change in valuation is recorded as a receivable or payable for variation margin and settled in cash with the central clearing party daily.

Entering into swap agreements involves counterparty and market risk. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, that there may be unfavorable changes in interest rates, and, in the case of credit default swaps, that the Adviser does not

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December 31, 2017 (Unaudited)

correctly predict the creditworthiness of the issuers of the reference obligation on which the credit default swap is based. In the case of centrally cleared swaps, counterparty risk is minimal due to protections provided by the central clearing party.

Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to receive or pay interest (e.g., an exchange of fixed rate payments for floating rate payments) with respect to a notional amount of principal. When a Fund enters into an interest rate swap, it typically agrees to make payments to its counterparty based on a specified long- or short-term interest rate, and will receive payments from its counterparty based on another interest rate. Other forms of interest rate swap agreements include interest rate caps, under which, in return for a specified payment stream, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; interest rate floors, under which, in return for a specified payment stream, one party agrees to make

payments to the other to the extent that interest rates fall below a specified rate, or “floor”; and interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels. A Fund may enter into an interest rate swap in order, for example, to hedge against the effect of interest rate changes on the value of specific securities in its portfolio, or to adjust the interest rate sensitivity (duration) or the credit exposure of its portfolio overall, or otherwise as a substitute for a direct investment in debt securities.

During the period ended December 31, 2017, the Funds’ direct investment in derivatives consisted of forward foreign currency exchange contracts, futures contracts, credit default swaps, interest rate swaps and purchased options.

The following is a summary of the fair value of derivative instruments held directly by the Funds as of December 31, 2017:

Global Floating Rate Fund

ASSET DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts	Unrealized appreciation on forward foreign currency exchange contracts	$	13,444
Total		$	13,444

LIABILITY DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts	Unrealized depreciation on forward foreign currency exchange contracts	$	(379,471	)
Total		$	(379,471	)

Global Credit Income Opportunities Fund

ASSET DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FOREIGN EXCHANGE CONTRACTS RISK		INTEREST RATE RISK		EQUITY RISK		TOTAL
Forward Foreign Currency Exchange Contracts	Unrealized appreciation on forward foreign currency exchange contracts	$	4,297	$	–	$	–	$	4,297
Purchased Options	Investments, at fair value		–				276,000		276,000
Total		$	4,297	$	–	$	276,000	$	280,297

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December 31, 2017 (Unaudited)

LIABILITY DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK		EQUITY RISK		TOTAL
Forward Foreign Currency Exchange Contracts	Unrealized depreciation on forward foreign currency exchange contracts	$	(288,389	)	$	–	$	–	$	(288,389	)
Total		$	(288,389	)	$	–	$	–	$	(288,389	)

Active Short Duration Bond Fund

ASSET DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	INTEREST RATE RISK		CREDIT RISK		TOTAL
Futures Contracts	Includes cumulative unrealized appreciation/depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.	$	497,766	$	–	$	497,766
Purchased Options	Investments, at fair value		1,621,023		–		1,621,023
Total		$	2,118,789	$	–	$	2,118,789

LIABILITY DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	INTEREST RATE RISK			CREDIT RISK			TOTAL
Futures Contracts	Includes cumulative unrealized appreciation/ depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.	$	(174,432	)	$	–		$	(174,432	)
OTC—Swaps Contracts	Swap contracts, at fair value		–			(76,086	)		(76,086	)
Total		$	(174,432	)	$	(76,086	)	$	(250,518	)

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December 31, 2017 (Unaudited)

Total Return Bond Fund

ASSET DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FOREIGN EXCHANGE CONTRACTS RISK		INTEREST RATE RISK		CREDIT RISK		TOTAL
Forward Foreign Currency Exchange Contracts	Unrealized appreciation on forward foreign currency exchange contracts	$	11,963	$	–	$	–	$	11,963
Futures Contracts	Includes cumulative unrealized appreciation/ depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.		–		6,080		–		6,080
Purchased Options	Investments, at fair value		–		183,668		–		183,668
Total		$	11,963	$	189,748	$	–	$	201,711

LIABILITY DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK			CREDIT RISK			TOTAL
Forward Foreign Currency Exchange Contracts	Unrealized depreciation on forward foreign currency exchange contracts	$	(10,487	)	$	–		$			$	(10,487	)
Futures Contracts	Includes cumulative unrealized appreciation/ depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.		–			(16,067	)		–			(16,067	)
OTC – Swaps Contracts	Swap contracts, at fair value		–			–			(19,021	)		(19,021	)
Total		$	(10,487	)	$	(16,067	)	$	(19,021	)	$	(45,575	)

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December 31, 2017 (Unaudited)

Emerging Markets Debt Blended Total Return Fund

ASSET DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK			CREDIT RISK			TOTAL
Forward Foreign Currency Exchange Contracts	Unrealized appreciation on forward foreign currency exchange contracts	$	166,761		$	–		$	–		$	166,761
OTC – Swaps Contracts	Swap contracts, at fair value		–			8,497			7,150			15,647
Total		$	166,761		$	8,497		$	7,150		$	182,408
LIABILITY DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK			CREDIT RISK			TOTAL
Forward Foreign Currency Exchange Contracts	Unrealized depreciation on forward foreign currency exchange contracts	$	(234,829	)	$	–		$			$	(234,829	)
Futures Contracts	Includes cumulative unrealized appreciation/ depreciation of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.		–			(3,066	)		–			(3,066	)
OTC – Swaps Contracts	Swap contracts, at fair value		(27,068	)		(37,040	)		(6,195	)		(70,303	)
Total		$	(261,897	)	$	(40,106	)	$	(6,195	)	$	(308,198	)

Emerging Markets Local Currency Debt Fund

ASSET DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FOREIGN EXCHANGE CONTRACTS RISK		INTEREST RATE RISK		TOTAL
Forward Foreign Currency Exchange Contracts	Unrealized appreciation on forward foreign currency exchange contracts	$	247,402	$	–	$	247,402
OTC – Swaps Contracts	Swap contracts, at fair value		–		36,887		36,887
Total		$	247,402	$	36,887	$	284,289

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December 31, 2017 (Unaudited)

LIABILITY DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK			TOTAL
Forward Foreign Currency Exchange Contracts	Unrealized depreciation on forward foreign currency exchange contracts	$	(359,744	)	$	–		$	(359,744	)
OTC – Swaps Contracts	Swap contracts, at fair value					(37,077	)		(37,077	)
	Includes cumulative unrealized appreciation/ depreciation of swap contracts as reported in thein the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.		–			(21,979	)		(21,979	)
Total		$	(359,744	)	$	(59,056	)	$	(418,800	)

Global High Yield Fund

ASSET DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts	Unrealized appreciation on forward foreign currency exchange contracts	$	8,505
Total		$	8,505

LIABILITY DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts	Unrealized depreciation on forward foreign currency exchange contracts	$	(9,528	)
Total		$	(9,528	)

Amount of Realized Gain/(Loss) on Derivatives:

Global Floating Rate Fund

	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts	$	(995,150	)
Total	$	(995,150	)

Global Credit Income Opportunities Fund

	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK			EQUITY RISK			TOTAL
Forward Foreign Currency Exchange Contracts	$	(909,532	)	$	–		$	–		$	(909,532	)
Purchased Options		–			(94,770	)		(105,446	)		(200,216	)
Total	$	(909,532	)	$	(94,770	)	$	(105,446	)	$	(1,109,748	)

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December 31, 2017 (Unaudited)

Active Short Duration Bond Fund

	INTEREST RATE RISK			CREDIT RISK			TOTAL
Futures Contracts	$	135,078		$	–		$	135,078
Purchased Options		(95,458	)		–			(95,458	)
Swaps Contracts		–			(19,098	)		(19,098	)
Total	$	39,620		$	(19,098	)	$	20,522

Total Return Bond Fund

	FOREIGN EXCHANGE CONTRACTS RISK		INTEREST RATE RISK			CREDIT RISK			TOTAL
Forward Foreign Currency Exchange Contracts	$	6,153	$	–		$	–		$	6,153
Futures Contracts		–		(8,197	)		–			(8,197	)
Purchased Options		–		(19,770	)		–			(19,770	)
Swaps Contracts		–		–			(3,828	)		(3,828	)
Total	$	6,153	$	(27,967	)	$	(3,828	)	$	(25,642	)

Emerging Markets Debt Blended Total Return Fund

	FOREIGN EXCHANGE CONTRACTS RISK		INTEREST RATE RISK			CREDIT RISK		TOTAL
Forward Foreign Currency Exchange Contracts	$	13,529	$	–		$	–	$	13,529
Futures Contracts		–		(8,600	)		–		(8,600	)
Swaps Contracts		–		57,300			29,609		86,909
Total	$	13,529	$	48,700		$	29,609	$	91,838

Emerging Markets Local Currency Debt Fund

	FOREIGN EXCHANGE CONTRACTS RISK		INTEREST RATE RISK		TOTAL
Forward Foreign Currency Exchange Contracts	$	172,690	$	–	$	172,690
Swaps Contracts		–		27,151		27,151
Total	$	172,690	$	27,151	$	199,841

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December 31, 2017 (Unaudited)

Global High Yield Fund

	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts	$	(316,456	)
Total	$	(316,456	)

Change in Unrealized Appreciation/(Depreciation) on Derivatives:

Global Floating Rate Fund

	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts	$	(58,509	)
Total	$	(58,509	)

Global Credit Income Opportunities Fund

	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK		EQUITY RISK			TOTAL
Forward Foreign Currency Exchange Contracts	$	(23,806	)	$	–	$	–		$	(23,806	)
Purchased Options		–			68,777		(225,594	)		(156,817	)
Total	$	(23,806	)	$	68,777	$	(225,594	)	$	(180,623	)

Active Short Duration Bond Fund

	INTEREST RATE RISK			CREDIT RISK			TOTAL
Futures Contracts	$	72,952		$	–		$	72,952
Purchased Options		(19,519	)		–			(19,519	)
Swaps Contracts		–			(7,153	)		(7,153	)
Total	$	53,433		$	(7,153	)	$	46,280

Total Return Bond Fund

	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK			CREDIT RISK			TOTAL
Forward Foreign Currency Exchange Contracts	$	(770	)	$	–		$	–		$	(770	)
Futures Contracts		–			(14,288	)		–			(14,288	)
Purchased Options		–			5,297			–			5,297
Swaps Contracts		–			–			(2,142	)		(2,142	)
Total	$	(770	)	$	(8,991	)	$	(2,142	)	$	(11,903	)

201

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

Emerging Markets Debt Blended Total Return Fund

	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK			CREDIT RISK		TOTAL
Forward Foreign Currency Exchange Contracts	$	(31,084	)	$	–		$	–	$	(31,084	)
Futures Contracts		–			2,868			–		2,868
Swaps Contracts		–			(3,270	)		–		(3,270	)
Total	$	(31,084	)	$	(402	)	$	–	$	(31,486	)

Emerging Markets Local Currency Debt Fund

	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK			TOTAL
Forward Foreign Currency Exchange Contracts	$	(165,113	)	$	–		$	(165,113	)
Swaps Contracts		–			(50,858	)		(50,858	)
Total	$	(165,113	)	$	(50,858	)	$	(215,971	)

Global High Yield Fund

	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts	$	77,840
Total	$	77,840

Global Floating Rate Fund

NUMBER OF CONTRACTS, NOTIONAL AMOUNTS OF SHARES/UNITS	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts(1)	$	29,964,882
Total	$	29,964,882

(1) Volume of derivative activity is based on an average of month-end notional amounts outstanding during the period.

Global Credit Income Opportunities Fund

NUMBER OF CONTRACTS, NOTIONAL AMOUNTS OF SHARES/UNITS	FOREIGN EXCHANGE CONTRACTS RISK		INTEREST RATE RISK		EQUITY RISK		TOTAL
Forward Foreign Currency Exchange Contracts(1)	$	30,697,436	$	–	$	–	$	30,697,436
Purchased Options(1)		–		13,000,000		35		13,000,035
Total	$	30,697,436	$	13,000,000	$	35	$	43,697,471

(1) Volume of derivative activity is based on an average of month-end notional amounts outstanding during the period.

202

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

Active Short Duration Bond Fund

NUMBER OF CONTRACTS, NOTIONAL AMOUNTS OF SHARES/UNITS	INTEREST RATE RISK		CREDIT RISK		TOTAL
Futures Contracts(1)	$	1,314	$	–	$	1,314
Purchased Options(2)		8,281,333		–		8,281,333
OTC – Swaps Contracts		–		2,830,000		2,830,000
Total	$	8,282,647	$	2,830,000	$	11,112,647

(1) Volume of derivative activity is based on an average of month-end contracts outstanding during the period.

(2) Volume of derivative activity is based on an average of month-end notional amounts outstanding during the period.

Total Return Bond Fund

NUMBER OF CONTRACTS, NOTIONAL AMOUNTS OF SHARES/UNITS	FOREIGN EXCHANGE CONTRACTS RISK		INTEREST RATE RISK		CREDIT RISK		TOTAL
Forward Foreign Currency Exchange Contracts(1)	$	1,046,604	$	–	$	–	$	1,046,604
Futures Contracts(2)		–		35		–		35
Purchased Options(1)		–		1,587,000		–		1,587,000
OTC – Swaps Contracts		–		–		610,000		610,000
Total	$	1,046,604	$	1,587,035	$	610,000	$	3,243,639

(1) Volume of derivative activity is based on an average of month-end notional amounts outstanding during the period.

(2) Volume of derivative activity is based on an average of month-end contracts outstanding during the period.

Emerging Markets Debt Blended Total Return Fund

NUMBER OF CONTRACTS, NOTIONAL AMOUNTS OF SHARES/UNITS		FOREIGN EXCHANGE CONTRACTS RISK		INTEREST RATE RISK		CREDIT RISK		TOTAL
Forward Foreign Currency Exchange Contracts(1)	Investments, at fair value	$	19,003,196	$	–	$	–	$	19,003,196
Futures Contracts(2)	Investments, at fair value		–		2		–		2
Centrally Cleared Credit Default Swaps Contracts(1)			189,980		4,141,939		1,250,000		5,581,919
Total		$	19,193,176	$	4,141,941	$	1,250,000	$	24,585,117

(1) Volume of derivative activity is based on an average of month-end notional amounts outstanding during the period.

(2) Volume of derivative activity is based on an average of month-end contracts outstanding during the period.

203

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

Emerging Markets Local Currency Debt Fund

NUMBER OF CONTRACTS, NOTIONAL AMOUNTS OF SHARES/UNITS	FOREIGN EXCHANGE CONTRACTS RISK		INTEREST RATE RISK		TOTAL
Forward Foreign Currency Exchange Contracts(1)	$	14,478,874	$	–	$	14,478,874
OTC – Swaps Contracts		–		2,131,742		2,131,742
Centrally Cleared Credit Default Swaps Contracts(1)		–		804,752		804,752
Total	$	14,478,874	$	2,936,494	$	17,415,368

(1) Volume of derivative activity is based on an average of month-end notional amounts outstanding during the period.

Global High Yield Fund

NUMBER OF CONTRACTS, NOTIONAL AMOUNTS OF SHARES/UNITS	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts(1)	$	7,105,741
Total	$	7,105,741

(1) Volume of derivative activity is based on an average of month-end notional amounts outstanding during the period.

K. Disclosures about Offsetting Assets and Liabilities

The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2011-11 “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). These disclosure requirements are intended to help better assess the effect or potential effect of offsetting arrangements on a Fund’s financial position. In addition, FASB issued Accounting Standards Update No. 2013-01 “Clarifying the Scope of Offsetting Assets and Liabilities” (“ASU 2013-01”), specifying which transactions are subject to disclosures about offsetting. In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to terminate derivative contracts prior to maturity in the event the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements. The result would cause the Fund to accelerate payment of any net liability owed to the counterparty.

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:

204

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

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	$	13,444	$	–	$	13,444
Total	$	13,444	$	–	$	13,444

			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			CASH COLLATERAL RECEIVED (a)		NET AMOUNT (b)
Credit Suisse International	$	769	$	(769	)	$	–	$	–
Morgan Stanley & Co.		12,675		(12,675	)		–		–
Total	$	13,444	$	(13,444	)	$	–	$	–

(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 December 31, 2017.

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	$	379,471	$	–	$	379,471
Total	$	379,471	$	–	$	379,471

			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			CASH COLLATERAL PLEDGED (a)		NET AMOUNT (b)
Credit Suisse International	$	14,921	$	(769	)	$	–	$	14,152
Morgan Stanley & Co.		364,550		(12,675	)		–		351,875
Total	$	379,471	$	(13,444	)	$	–	$	366,027

(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.

205

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of December 31, 2017.

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	$	4,297	$	–	$	4,297
Purchased Options		276,000		–		276,000
Total	$	280,297	$	–	$	280,297

			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			CASH COLLATERAL RECEIVED (a)		NET AMOUNT (b)
Bank of America N.A.	$	2,225	$	–		$	–	$	2,225
Goldman Sachs & Co.		2,072		(2,072	)		–		–
Morgan Stanley & Co.		276,000		–			–		276,000
Total	$	280,297	$	(2,072	)	$	–	$	278,225

(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 December 31, 2017.

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	$	288,389	$	–	$	288,389
Total	$	288,389	$	–	$	288,389

			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			CASH COLLATERAL PLEDGED (a)		NET AMOUNT (b)
Goldman Sachs & Co.	$	233,360	$	(2,072	)	$	–	$	231,288
JPMorgan Chase Bank N.A.		55,029		–			–		55,029
Total	$	288,389	$	(2,072	)	$	–	$	286,317

206

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

(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 December 31, 2017.

Active Short Duration Bond 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
Purchased Options	$	1,621,023	$	–	$	1,621,023
Total	$	1,621,023	$	–	$	1,621,023

			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			CASH COLLATERAL RECEIVED (a)			NET AMOUNT (b)
JPMorgan Chase Bank N.A.	$	1,621,023	$	(34,177	)	$	(1,630,000	)	$	–
Total	$	1,621,023	$	(34,177	)	$	(1,630,000	)	$	–

(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 December 31, 2017.

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
Swap Contracts	$	54,973	$	–	$	54,973
Total	$	54,973	$	–	$	54,973

			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			CASH COLLATERAL PLEDGED (a)		NET AMOUNT (b)
Goldman Sachs & Co.	$	20,796	$	–		$	–	$	20,796
JPMorgan Chase Bank N.A.		34,177		(34,177	)		–		–
Total	$	54,973	$	(34,177	)	$	–	$	20,796

(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.

207

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of December 31, 2017.

Total Return Bond 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	$	11,963	$	–	$	11,963
Purchased Options		183,668		–		183,668
Total	$	195,631	$	–	$	195,631

			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			CASH COLLATERAL RECEIVED (a)		NET AMOUNT (b)
Bank of America N.A.	$	1,699	$	(1,699	)	$	–	$	–
BNP Paribas S.A.		1,751		(54	)		–		1,697
Citibank N.A.		19		–			–		19
Goldman Sachs & Co.		6,286		(6,286	)		–		–
JPMorgan Chase Bank N.A.		185,876		(10,926	)		–		174,950
Total	$	195,631	$	(18,965	)	$	–	$	176,666

(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 December 31, 2017.

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	$	10,487	$	–	$	10,487
Swap Contracts		13,935		–		13,935
Total	$	24,422	$	–	$	24,422

208

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

			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			CASH COLLATERAL PLEDGED (a)		NET AMOUNT (b)
Bank of America N.A.	$	2,730	$	(1,699	)	$	–	$	1,031
BNP Paribas S.A.		54		(54	)		–		–
Goldman Sachs & Co.		10,712		(6,286	)		–		4,426
JPMorgan Chase Bank N.A.		10,926		(10,926	)		–		–
Total	$	24,422	$	(18,965	)	$	–	$	5,457

(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 December 31, 2017.

Emerging Markets Debt Blended Total Return 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	$	166,761	$	–	$	166,761
Swap Contracts		12,106		–		12,106
Total	$	178,867	$	–	$	178,867

			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			CASH COLLATERAL RECEIVED (a)		NET AMOUNT (b)
Bank of America N.A.	$	40,625	$	(40,625	)	$	–	$	–
BNP Paribas S.A.		13,456		(5,024	)		–		8,432
Citibank N.A.		1,915		(1,620	)		–		295
Goldman Sachs & Co.		78,452		(61,445	)		–		17,007
JPMorgan Chase Bank N.A.		44,419		(44,419	)		–		–
Total	$	178,867	$	(153,133	)	$	–	$	25,734

(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 December 31, 2017.

209

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

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	$	234,829	$	–	$	234,829
Swap Contracts		42,064		–		42,064
Total	$	276,893	$	–	$	276,893

			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			CASH COLLATERAL PLEDGED (a)		NET AMOUNT (b)
Bank of America N.A.	$	126,102	$	(40,625	)	$	–	$	85,477
BNP Paribas S.A.		5,024		(5,024	)		–		–
Citibank N.A.		1,620		(1,620	)		–		–
Goldman Sachs & Co.		61,445		(61,445	)		–		–
JPMorgan Chase Bank N.A.		82,702		(44,419	)		–		38,283
Total	$	276,893	$	(153,133	)	$	–	$	123,760

(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 December 31, 2017.

Emerging Markets Local Currency Debt 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	$	247,402	$	–	$	247,402
Swap Contracts		36,887		–		36,887
Total	$	284,289	$	–	$	284,289

210

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

			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			CASH COLLATERAL RECEIVED (a)		NET AMOUNT (b)
Bank of America N.A.	$	55,739	$	(55,739	)	$	–	$	–
BNP Paribas S.A.		29,475		(29,475	)		–		–
Citibank N.A.		9,267		(9,267	)		–		–
Goldman Sachs & Co.		150,706		(88,995	)		–		61,711
JPMorgan Chase Bank N.A.		39,102		(39,102	)		–		–
Total	$	284,289	$	(222,578	)	$	–	$	61,711

(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 December 31, 2017.

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	$	359,744	$	–	$	359,744
Swap Contracts		37,077		–		37,077
Total	$	396,821	$	–	$	396,821

			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			CASH COLLATERAL PLEDGED (a)		NET AMOUNT (b)
Bank of America N.A.	$	110,200	$	(55,739	)	$	–	$	54,461
BNP Paribas S.A.		69,433		(29,475	)		–		39,958
Citibank N.A.		11,304		(9,267	)		–		2,037
Goldman Sachs & Co.		88,995		(88,995	)		–		–
JPMorgan Chase Bank N.A.		113,996		(39,102	)		–		74,894
State Street Bank & Trust Co.		2,893		–			–		2,893
Total	$	396,821	$	(222,578	)	$	–	$	174,243

(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 December 31, 2017.

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December 31, 2017 (Unaudited)

Global High Yield 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	$	8,585	$	–	$	8,585
Total	$	8,585	$	–	$	8,585

			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		CASH COLLATERAL RECEIVED (a)		NET AMOUNT (b)
Goldman Sachs & Co.	$	8,585	$	–	$	–	$	8,585
Total	$	8,585	$	–	$	–	$	8,585

(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 December 31, 2017.

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	$	9,528	$	–	$	9,528
Total	$	9,528	$	–	$	9,528

			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		CASH COLLATERAL PLEDGED (a)		NET AMOUNT (b)
Bank of America N.A.	$	9,528	$	–	$	–	$	9,528
Total	$	9,528	$	–	$	–	$	9,528

(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 December 31, 2017.

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December 31, 2017 (Unaudited)

L. Foreign Securities

Investing in securities of foreign companies and foreign governments involves special risks and considerations not typically associated with investing in U.S. companies and the U.S. government. These risks include valuation of currencies and adverse political and economic developments. Moreover, securities of many foreign companies, foreign governments, and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. companies and the U.S. government.

M. Foreign Currency Translation

The books and records of the Funds are maintained in U.S. dollars. Foreign currency transactions are translated into U.S. dollars on the following basis: (i) market value of investment securities, assets and liabilities at the daily rates of exchange, and (ii) purchases and sales of investment securities, dividend and interest income and certain expenses at the rates of exchange prevailing on the respective dates of such transactions. For financial reporting purposes, the Funds do not isolate changes in the exchange rate of investment securities from the fluctuations arising from changes in the market prices of securities. However, for Federal income tax purposes, the Funds do isolate and treat as ordinary income the effect of changes in foreign exchange rates on realized gain or loss from the sale of investment securities and payables and receivables arising from trade-date and settlement-date differences.

N. Counterparty Risk

The Funds seek to manage counterparty credit risk by entering into agreements only with counterparties the Adviser believes have the financial resources to honor their obligations. The Adviser monitors the financial stability of the Funds’ counterparties.

3. Advisory Fee

The Funds have entered into an Investment Management Agreement (the “Agreement”) with the Adviser. Pursuant to the Agreement, the Funds have agreed to pay the Adviser a fee payable at the end of each calendar month as set forth below:

Global Floating Rate Fund	0.65% of average daily net assets
Global Credit Income Opportunities Fund	0.75% of average daily net assets

Active Short Duration Bond Fund	0.35% of average daily net assets
Total Return Bond Fund	0.40% of average daily net assets
Emerging Markets Debt Blended Total Return Fund	0.75% of average daily net assets
Emerging Markets Local Currency Debt Fund	0.75% of average daily net assets
Global High Yield Fund	0.60% of average daily net assets
U.S. High Yield Fund	0.55% of average daily net assets

The Adviser has contractually agreed to waive and/or reimburse a portion of its fees and/or reimburse expenses (excluding distribution and service (12b-1) fees, interest expenses, taxes, acquired fund fees and expenses, fees incurred in acquiring and disposing of securities and extraordinary expenses) such that total net annual operating expenses (including 12b-1 fees) for each class do not exceed the following rates (as a percentage of average daily net assets allocated to each such class):

	CLASS A			CLASS C			CLASS I			CLASS Y
Global Floating Rate Fund		1.00	%		1.75	%		0.75	%		0.75	%
Global Credit Income Opportunities Fund		1.20	%		1.95	%		0.95	%		0.95	%
Active Short Duration Bond Fund		0.65	%		0.90	%		0.40	%		0.40	%
Total Return Bond Fund		0.80	%		1.55	%		0.55	%		0.55	%
Emerging Markets Debt Blended Total Return Fund		1.20	%		1.95	%		0.95	%		0.95	%
Emerging Markets Local Currency Debt Fund		1.20	%		1.95	%		0.95	%		0.95	%
Global High Yield Fund		1.05	%		1.80	%		0.80	%		0.80	%
U.S. High Yield Fund		1.00	%		1.75	%		0.75	%		0.75	%

Pursuant to the expense waiver/reimbursement agreement, the Adviser is entitled to be reimbursed for any fees the Adviser waives and Fund expenses that the Adviser reimburses for a period of three years following such fee waivers and expense reimbursements, to the

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December 31, 2017 (Unaudited)

extent that such reimbursement of the Adviser by a Fund will not cause the Fund to exceed any applicable expense limitation that is in place for the Fund.

The contractual management fee waiver and expense reimbursement agreements between the Funds and the Adviser will remain in effect until November 1, 2018 and may be terminated only upon the approval of the Funds’ Board of Trustees.

Subject to the supervision of the Adviser and the Board, BGA manages the investment and reinvestment of a portion of the assets of the Global Floating Rate Fund, Global Credit Income Opportunities Fund, Emerging Markets Debt Blended Total Return Fund and Global High Yield Funds, as allocated from time to time to BGA. As compensation for its services, the Adviser (not the Funds) pays to BGA sub-advisory fees equal to the below percentages of the advisory fee paid to the Adviser by the applicable Fund, net of any fee waivers and/or expense reimbursements:

Global Floating Rate Fund	35	%
Global Credit Income Opportunities Fund	35	%
Emerging Markets Debt Blended Total Return Fund	50	%
Global High Yield Fund	35	%

The Adviser or its affiliates voluntarily agreed to waive certain fees for the Global Floating Rate Fund, the Active Short Duration Bond Fund, the Total Return Bond Fund, the Emerging Markets Debt Blended Total Return Fund and the Emerging Markets Local Currency Debt Fund in order to maintain a minimum net investment income of not less than $0. Such arrangements may be discontinued by the investment adviser at any time. For the six months ended December 31, 2017 the amount of the waivers were $5,462, $211, $5, $3,326 and $9,744, respectively.

4. 12b-1 Distribution and Service Plan

ALPS Distributors, Inc. (the “Distributor”) is the Distributor of the Funds’ shares as of December 31, 2017.

The Funds have adopted a Distribution and Shareholder Services Plan (the “Plan”), pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, each Fund’s Class A and Class C shares may compensate certain financial institutions, including the Distributor, for certain distribution and shareholder servicing activities. The Funds’ Class A shares may expend an aggregate amount, on an annual basis, not to exceed 0.25% of the value of the average daily net assets of a Fund attributable to Class A shares and 1.00% (0.50% for Active Short Duration Bond Fund) of the value of the average daily net assets of

a Fund attributable to Class C shares. The Plan provides that the distribution and service fees are payable to the Distributor regardless of the amounts actually expended by the Distributor for distribution of the Funds’ shares and service activities.

Under its terms, the Funds’ Plan shall remain in effect from year to year, provided such continuance is approved annually by a vote of a majority of the Boards’ members and a majority of those Boards’ members who are not “interested persons” of the Funds and who have no direct or indirect financial interest in the operation of the Plan or in any agreement related to the Plan.

5. Sales Charges and Commissions

For the six months ended December 31, 2017, the amount of sales charges retained by the Distributor on sales of Class A and Class C shares of the Funds were as follows:

	CLASS C
Global Floating Rate Fund	$	700
Global Credit Income Opportunities Fund		7
Emerging Markets Debt Blended Total Return Fund		98

For the six months ended December 31, 2017, the Distributor received the following commissions on sales of shares of the Funds, after concessions were paid to authorized dealers:

	DISTRIBUTOR COMMISSIONS		DEALERS’ CONCESSIONS
Global Floating Rate Fund	$	4,266	$	68,807
Global Credit Income Opportunities Fund		8,041		75,417
Active Short Duration Bond Fund		–		3,175
Emerging Markets Debt Blended Total Return Fund		888		6,400

6. Administrator, Custody, and Transfer Agent Fees

The Funds have engaged State Street Bank and Trust (“SSB”) to serve as the Funds’ administrator, custodian, and fund accountant. The Funds have engaged ALPS Fund Services, Inc. (“ALPS”) to serve as the Funds’ transfer agent. For each of these services, the Funds have agreed to pay SSB and ALPS fees payable at the end of each calendar month pursuant to fee agreements between SSB, ALPS, and the Funds, respectively. For the six months ended December 31, 2017, the fee for the services

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December 31, 2017 (Unaudited)

performed by SSB was at the following annual rate of each Fund’s average daily managed assets:

Aggregate Administrator, Custodian and Fund Accountant Fee to SSB:

Global Floating Rate Fund	0.23	%
Global Credit Income Opportunities Fund	0.22	%
Active Short Duration Bond Fund	0.20	%
Total Return Bond Fund	0.37	%
Emerging Markets Debt Blended Total Return Fund	0.61	%
Emerging Markets Local Currency Debt Fund	0.59	%
Global High Yield Fund	0.35	%
U.S. High Yield Fund	0.33	%

For the six months ended December 31, 2017, the aggregate effective fee for the services performed by ALPS was at the following annual rate of each Fund’s average daily managed assets:

Transfer Agency Fee to ALPS:

Global Floating Rate Fund	0.01	%
Global Credit Income Opportunities Fund	0.02	%
Active Short Duration Bond Fund	0.01	%
Total Return Bond Fund	0.07	%
Emerging Markets Debt Blended Total Return Fund	0.24	%
Emerging Markets Local Currency Debt Fund	0.22	%
Global High Yield Fund	0.08	%
U.S. High Yield Fund	0.06	%

7. Income Taxes

It is the Funds’ intention to qualify as a RIC under subchapter M of the Internal Revenue Code and distribute all of its taxable income. Accordingly, no provision for Federal income taxes is required in the financial statements.

The tax character of dividends paid to shareholders during the tax year ended June 30, 2017 was as follows:

	ORDINARY INCOME		NET LONG-TERM CAPITAL GAINS		RETURN OF CAPITAL		TOTAL DISTRIBUTIONS PAID
Global Floating Rate Fund	$	5,697,657	$	–	$	2,580,175	$	8,277,832
Global Credit Income Opportunities Fund		6,724,714		–		805,615		7,530,329
Active Short Duration Bond Fund		4,705,679		75,157		–		4,780,836
Total Return Bond Fund		800,010		–		–		800,010
Emerging Markets Debt Blended Total Return Fund		530,014		–		–		530,014
Emerging Markets Local Currency Debt Fund		559,981		32,131		–		592,112
Global High Yield Fund		2,356,560		383,823		–		2,740,383
U.S. High Yield Fund		2,602,629		–		–		2,602,629

In accordance with the Regulated Investment Company Modernization Act of 2010, the Funds will carryforward capital losses incurred in taxable years beginning after December 22, 2010 (“post-enactment losses”) indefinitely. Post-enactment losses will also retain their character as either short-term or long-term and be utilized before any pre-enactment losses.

As of December 31, 2017, 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	$	216,006,347	$	3,127,545	$	(4,906,585	)	$	(1,779,040	)
Global Credit Income Opportunities Fund		179,165,787		4,084,450		(4,714,527	)		(630,077	)
Active Short Duration Bond Fund		420,929,970		1,823,327		(2,064,182	)		(240,855	)
Total Return Bond Fund		35,202,738		592,685		(150,832	)		441,853
Emerging Markets Debt Blended Total Return Fund		10,646,514		828,403		(449,144	)		379,259
Emerging Markets Local Currency Debt Fund		19,671,219		904,472		(609,600	)		294,872
Global High Yield Fund		25,938,513		995,966		(707,210	)		288,756
U.S. High Yield Fund		32,310,970		999,239		(805,833	)		193,406

215

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December 31, 2017 (Unaudited)

The difference between book-basis and tax-basis unrealized gains (losses) is attributable to wash sales.

8. Investment Transactions

Purchases and sales of securities (excluding short-term debt securities) for the six months ended December 31, 2017 were as follows:

	PURCHASES		SALES		GOVERNMENT PURCHASES		GOVERNMENT SALES
Global Floating Rate Fund	$	71,936,522	$	52,481,164	$	–	$	–
Global Credit Income Opportunities Fund		58,430,806		36,245,937		–		–
Active Short Duration Bond Fund		94,456,022		30,861,809		8,490,296		57,858,636
Total Return Bond Fund		5,090,894		3,912,601		30,706,057		30,101,189
Emerging Markets Debt Blended Total Return Fund		4,541,500		4,278,622		–		–
Emerging Markets Local Currency Debt Fund		14,069,566		1,566,462		–		–
Global High Yield Fund		8,961,681		10,305,569		–		–
U.S. High Yield Fund		8,862,331		8,879,920		–		–

9. Common Stock

Transactions in common stock for the six months ended December 31, 2017 were as follows:

Global Floating Rate Fund

	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017						FOR THE YEAR ENDED JUNE 30, 2017
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		1,030,287		$	9,841,728			3,829,613		$	36,363,931
Shares sold through reinvestments of distributions		117,729			1,123,674			146,369			1,393,229
Shares redeemed		(380,061	)		(3,626,788	)		(753,451	)		(7,217,797	)
Net increase		767,955		$	7,338,614			3,222,531		$	30,539,363
CLASS C
Shares sold		68,233		$	649,027			282,492		$	2,668,145
Shares sold through reinvestments of distributions		14,406			137,006			28,770			272,104
Shares redeemed		(89,896	)		(854,275	)		(215,649	)		(2,030,225	)
Net increase (decrease)		(7,257	)	$	(68,242	)		95,613		$	910,024
CLASS I
Shares sold		575,962		$	5,511,861			2,214,829		$	21,195,710
Shares sold through reinvestments of distributions		51,815			495,525			51,957			499,056
Shares redeemed		(414,566	)		(3,959,994	)		(2,378,284	)		(22,670,813	)
Net increase (decrease)		213,211		$	2,047,392			(111,498	)	$	(976,047	)
CLASS Y
Shares sold		2,146,480		$	20,510,570			9,291,951		$	88,449,851
Shares sold through reinvestments of distributions		269,674			2,578,126			484,693			4,604,438
Shares redeemed		(2,296,148	)		(21,964,233	)		(10,706,795	)		(101,282,672	)
Net increase (decrease)		120,006		$	1,124,463			(930,151	)	$	(8,228,383	)

216

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December 31, 2017 (Unaudited)

Global Credit Income Opportunities Fund

	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017						FOR THE YEAR ENDED JUNE 30, 2017
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		1,086,291		$	10,313,470			2,302,114		$	21,436,358
Shares sold through reinvestments of distributions		81,790			776,115			106,536			999,227
Shares redeemed		(446,200	)		(4,231,015	)		(980,824	)		(9,084,434	)
Net increase		721,881		$	6,858,570			1,427,826		$	13,351,151
CLASS C
Shares sold		203,399		$	1,925,575			419,598		$	3,942,417
Shares sold through reinvestments of distributions		13,582			128,746			21,444			200,486
Shares redeemed		(69,750	)		(660,688	)		(150,039	)		(1,403,298	)
Net increase		147,231		$	1,393,633			291,003		$	2,739,605
CLASS I
Shares sold		–		$	–			3,073		$	26,732
Shares sold through reinvestments of distributions		47			440			98			913
Shares redeemed		–			–			(470,459	)		(4,473,652	)
Net increase (decrease)		47		$	440			(467,288	)	$	(4,446,007	)
CLASS Y
Shares sold		2,471,427		$	23,444,647			5,823,585		$	54,887,640
Shares sold through reinvestments of distributions		186,787			1,772,124			236,560			2,218,558
Shares redeemed		(1,023,162	)		(9,696,974	)		(2,585,294	)		(24,389,480	)
Net increase		1,635,052		$	15,519,797			3,474,851		$	32,716,718

Active Short Duration Bond Fund

	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017						FOR THE YEAR ENDED JUNE 30, 2017
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		7,913,811		$	79,180,960			15,421,798		$	153,874,328
Shares sold through reinvestments of distributions		182,933			1,827,478			162,991			1,626,866
Shares redeemed		(3,872,244	)		(38,711,824	)		(7,690,111	)		(76,746,051	)
Net increase		4,224,500		$	42,296,614			7,894,678		$	78,755,143
CLASS C
Shares sold		73,439		$	734,823			2,805		$	28,000
Shares sold through reinvestments of distributions		795			7,936			543			5,417
Shares redeemed		(10,157	)		(101,369	)		(5,554	)		(55,396	)
Net increase (decrease)		64,077		$	641,390			(2,206	)	$	(21,979	)
CLASS I
Shares sold		20,309		$	203,500			10,010		$	100,000
Shares sold through reinvestments of distributions		–			–			–			–
Shares redeemed		–			–			(598,837	)		(5,976,390	)
Net increase (decrease)		20,309		$	203,500			(588,827	)	$	(5,876,390	)

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December 31, 2017 (Unaudited)

	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017						FOR THE YEAR ENDED JUNE 30, 2017
CLASS Y	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		10,515,174		$	105,138,968			16,431,103		$	163,786,901
Shares sold through reinvestments of distributions		287,091			2,865,494			247,545			2,469,485
Shares redeemed		(5,095,028	)		(50,913,364	)		(7,243,098	)		(72,203,413	)
Net increase		5,707,237		$	57,091,098			9,435,550		$	94,052,973

Total Return Bond Fund

	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017						FOR THE YEAR ENDED JUNE 30, 2017
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		–		$	–			1,859		$	19,007
Shares sold through reinvestments of distributions		23			231			45			449
Shares redeemed		(53	)		(528	)		(995	)		(9,908	)
Net increase (decrease)		(30	)	$	(297	)		909		$	9,548
CLASS C
Shares sold		–		$	–			–		$	–
Shares sold through reinvestments of distributions		–			–			–			–
Shares redeemed		–			–			–			–
Net increase		–		$				–		$	–
CLASS I
Shares sold		–		$	–			–		$	–
Shares sold through reinvestments of distributions		–			–			–			–
Shares redeemed		–			–			–			–
Net increase		–		$				–		$	–
CLASS Y
Shares sold		192,676		$	1,949,375			497,579		$	4,982,291
Shares sold through reinvestments of distributions		9,802			99,116			7,463			74,879
Shares redeemed		(40,365	)		(408,149	)		(49,321	)		(493,631	)
Net increase		162,113		$	1,640,342			455,721		$	4,563,539

Emerging Markets Debt Blended Total Return Fund

	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017						FOR THE YEAR ENDED JUNE 30, 2017
CLASS A	SHARES			AMOUNT			SHARES		AMOUNT
Shares sold		39,297		$	422,822			–	$	–
Shares sold through reinvestments of distributions		1,351			14,242			–		–
Shares redeemed		(1,210	)		(12,759	)		–		–
Net increase		39,438		$	424,305			–	$	–

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December 31, 2017 (Unaudited)

	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017						FOR THE YEAR ENDED JUNE 30, 2017
CLASS C	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		938		$	10,000			981		$	9,740
Shares sold through reinvestments of distributions		83			868			20			208
Shares redeemed		(968	)		(10,124	)		(2	)		(17	)
Net increase		53		$	744			999		$	9,931
CLASS I
Shares sold		–		$	–			–		$	–
Shares sold through reinvestments of distributions		–			–			–			–
Shares redeemed		–			–			–			–
Net increase		–		$	–			–		$	–
CLASS Y
Shares sold		10,633		$	114,000			50,328		$	529,500
Shares sold through reinvestments of distributions		1,569			16,593			212			2,219
Shares redeemed		(15,764	)		(167,589	)		(24,371	)		(255,411	)
Net increase (decrease)		(3,562	)	$	(36,996	)		26,169		$	276,308

Emerging Markets Local Currency Debt Fund

	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017						FOR THE YEAR ENDED JUNE 30, 2017
CLASS A	SHARES			AMOUNT			SHARES		AMOUNT
Shares sold		22,431		$	247,797			–	$	–
Shares sold through reinvestments of distributions		464			4,982			–		–
Shares redeemed		(1,992	)		(21,206	)		–		–
Net increase		20,903		$	231,573			–	$	–
CLASS C
Shares sold		–		$	–			–	$	–
Shares sold through reinvestments of distributions		–			–			–		–
Shares redeemed		–			–			–		–
Net increase		–		$	–			–	$	–
CLASS I
Shares sold		468,165		$	5,000,000			–	$	–
Shares sold through reinvestments of distributions		–			–			–		–
Shares redeemed		–			–			–		–
Net increase		468,165		$	5,000,000			–	$	–
CLASS Y
Shares sold		893,132		$	9,714,062			–	$	–
Shares sold through reinvestments of distributions		9,528			102,518			–		–
Shares redeemed		(31,613	)		(341,099	)		–		–
Net increase		871,047		$	9,475,481			–	$	–

219

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

Global High Yield Fund

	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017						FOR THE YEAR ENDED JUNE 30, 2017
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		–		$	–			1,210		$	12,543
Shares sold through reinvestments of distributions		36			365			34			351
Shares redeemed		–			–			(594	)		(6,118	)
Net increase		36		$	365			650		$	6,776
CLASS C
Shares sold		–		$	–			13,247		$	137,325
Shares sold through reinvestments of distributions		683			7,016			803			8,287
Shares redeemed		(221	)		(2,306	)		(417	)		(4,337	)
Net increase		462		$	4,710			13,633		$	141,275
CLASS I
Shares sold		–		$	–			–		$	–
Shares sold through reinvestments of distributions		–			–			–			–
Shares redeemed		–			–			–			–
Net increase				$				–		$	–
CLASS Y
Shares sold		172,097		$	1,801,529			143,843		$	1,490,367
Shares sold through reinvestments of distributions		8,767			90,462			10,017			103,275
Shares redeemed		(221,882	)		(2,307,672	)		(15,575	)		(162,145	)
Net increase (decrease)		(41,018	)	$	(415,681	)		138,285		$	1,431,497

U.S. High Yield Fund

	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017						FOR THE YEAR ENDED JUNE 30, 2017
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		149,029		$	1,544,636			548,169		$	5,757,935
Shares sold through reinvestments of distributions		13,548			140,164			12,725			133,626
Shares redeemed		(174,062	)		(1,808,584	)		(332,596	)		(3,522,759	)
Net increase (decrease)		(11,485	)	$	(123,784	)		228,298		$	2,368,802
CLASS C
Shares sold		–		$	–			1,155		$	12,126
Shares sold through reinvestments of distributions		68			698			37			390
Shares redeemed		–			–			(3	)		(32	)
Net increase		68		$	698			1,189		$	12,484
CLASS I
Shares sold		–		$	–			–		$	–
Shares sold through reinvestments of distributions		15,228			157,494			19,404			203,243
Shares redeemed		–			–			–			–
Net increase		15,228		$	157,494			19,404		$	203,243

220

Barings Funds Trust 2017 Semi-Annual Report

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2017 (Unaudited)

	FOR THE SIX MONTHS ENDED DECEMBER 31, 2017						FOR THE YEAR ENDED JUNE 30, 2017
CLASS Y	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		109,056		$	1,154,424			125,106		$	1,312,934
Shares sold through reinvestments of distributions		13,597			140,353			8,719			91,482
Shares redeemed		(16,324	)		(171,749	)		(1,412	)		(14,820	)
Net increase		106,329		$	1,123,028			132,413		$	1,389,596

10. Line of Credit

During the year ended June 30, 2017, the Trust (the “Borrower”) renewed its Credit Agreement (the “Credit Agreement”) with State Street Bank and Trust Company (the “Bank”). The Credit Agreement provides for a revolving credit facility of $40,000,000 (the “Facility Amount”) to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. Per the Credit Agreement, outstanding principal on the loan shall bear interest at a variable rate per annum equal to the higher of (a) the Federal Funds Rate as in effect on the day of the borrowing plus 1.25% and (b) the Overnight LIBOR rate as in effect on the day of the borrowing plus 1.25%. In addition, the Borrower shall pay to the Bank a commitment fee at the rate of 0.25% per annum on the daily unused portion of the Facility Amount. As of December 31, 2017, there were no loans outstanding pursuant to the Credit Agreement.

11. Recently Issued Accounting Pronouncements

In October 2016, the SEC adopted new rules and forms and amended other rules to enhance the reporting and disclosure of information by registered investment companies. As part of these changes, the SEC amended Regulation S-X to standardize and enhance disclosures, particularly the presentation of derivative investments, in investment company financial statements. The compliance date for the amendments to Regulation S-X was August 1, 2017 for reporting periods ended on or after that date, and the Funds’ financial statements are in compliance with those amendments.

12. Subsequent Events

Management has considered the circumstances under which the Funds should recognize or make disclosures regarding events or transactions occurring subsequent to December 31, 2017 through the date the financial statements were issued. Adjustments or additional disclosures, if any, have been included in these financial statements.

221

Barings Funds Trust 2017 Semi-Annual Report

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT AND SUB-ADVISORY AGREEMENT

The Investment Company Act of 1940 (the “1940 Act”) requires that a majority of both the full Board of Trustees and the Trustees who are not interested persons of the Trust, as defined under the 1940 Act (“Independent Trustees”), voting separately, annually approve the continuation of the Investment Management Agreement between, Barings Funds Trust (the “Trust”), on behalf of each of its eight series funds (the “Funds”), and Barings LLC (“Barings”) (the “Management Agreement”) and the Sub-Advisory Agreement between Barings and Barings Global Advisers Limited (“BGA”) (the “Sub-Advisory Agreement” and together with the Management Agreement, the “Agreements”). The Trustees considered matters bearing on the Funds and the Agreements at their meetings throughout the year, including a review of the Funds’ performance at each regular meeting. At in-person meetings held on May 4, 2017 and August 3, 2017 (the “Meetings”), the Trustees met for the purpose of considering whether to approve the continuation of the Agreements for the Funds. The Trustees’ review process and considerations in approving the Agreements are summarized below.

Prior to the Meetings, the Trustees requested and received from Morgan, Lewis & Bockius LLP, independent legal counsel to the Independent Trustees, a memorandum describing the Trustees’ legal responsibilities in connection with their review and approval of the Agreements. The Independent Trustees met prior to the August Board meeting with independent legal counsel to discuss their duties, the memorandum and the Agreements. The Trustees noted that they initially approved the Agreements for Barings Global Credit Income Opportunities Fund and Barings Global Floating Rate Fund in July 2013, and that they initially approved the Agreements for Barings Active Short Duration Bond Fund, Barings Emerging Markets Debt Blended Total Return Fund, Barings Emerging Markets Local Currency Debt Fund, Barings Global High Yield Fund, Barings Total Return Bond Fund and Barings U.S. High Yield Fund in January 2015. The Trustees also requested and received from Barings extensive written and oral information regarding various matters including: the principal terms of the Agreements; Barings and its personnel; the Funds’ investment performance, including comparative performance information; the nature and quality of the services provided by Barings to the Funds; the financial strength of Barings; the fee arrangements between Barings and each Fund and each Fund’s fee and expense information, including comparative fee and expense information; the profitability of the Agreements to Barings; and the potential “fallout” benefits to Barings resulting from the Agreements.

The Trustees’ conclusion as to the continuation of the Agreements was based on a comprehensive consideration of all information provided to the Board and not the result of any single issue. Some of the more significant factors that influenced the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, giving different weights to different factors. It is also important to recognize that the Board’s review of the Agreements is the result of ongoing review and discussion, rather than a single discussion. The Trustees’ conclusions may be based, in part, on their consideration of these arrangements throughout the year and in prior years.

The Trustees considered the terms of the Agreements, including the scope of the advisory and non-advisory services provided under the Agreements or otherwise. In evaluating the nature, scope and quality of the services provided by Barings to Barings Active Short Duration Bond Fund, Barings Emerging Markets Local Currency Debt Fund, Barings Total Return Bond Fund and Barings U.S. High Yield Fund; and by Barings and BGA to Barings Emerging Markets Debt Blended Total Return Fund, Barings Global Credit Income Opportunities Fund, Barings Global Floating Rate Fund and Barings Global High Yield Fund (“BGA Funds”), the Trustees considered the specific responsibilities of each of Barings and BGA in the day-to-day management of the Fund, the qualifications, experience and responsibilities of the portfolio managers and other key personnel who are involved in the day-to-day management of the Fund, the ability of each of Barings and BGA to attract and retain high-quality personnel, and the organizational depth and stability of each of Barings and BGA. The Trustees also considered the trading capabilities of each of Barings and BGA.

The Trustees reviewed the Funds’ investment performance, as well as the performance of peer groups of funds, over various time periods, using information provided by Broadridge Financial Solutions, Inc. (“Broadridge”) and Barings. The Trustees noted that the net total return performance of Class I shares of each of the Funds was as follows: Barings Global Floating Rate Fund ranked in the 1^st quintile of its Broadridge performance universe for each of the one-year, two-year and three-year periods ended March 31, 2017 (the 1^st quintile being the best performers and the 5^th quintile being the worst performers); Barings Global Credit Income Opportunities Fund ranked in the 1^st quintile of its Broadridge performance universe for each of the one-year, two-year and three-year periods ended March 31, 2017; Barings Active Short Duration

222

Barings Funds Trust 2017 Semi-Annual Report

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT AND SUB-ADVISORY AGREEMENT (CONTINUED)

Bond Fund ranked in the 2^nd quintile of its Broadridge performance universe for the one-year period ended March 31, 2017; Barings Total Return Bond Fund ranked in the 1^st quintile of its Broadridge performance universe for the one-year period ended March 31, 2017; Barings Emerging Markets Debt Blended Total Return Fund ranked in the 1^st quintile of its Broadridge performance universe for the one-year period ended March 31, 2017; Barings Emerging Markets Local Currency Debt Fund ranked in the 4^th quintile of its Broadridge performance universe for the one-year period ended March 31, 2017; Barings Global High Yield Fund ranked in the 1^st quintile of its Broadridge performance universe for the one-year period ended March 31, 2017; and Barings U.S. High Yield Fund ranked in the 1^st quintile of its Broadridge performance universe for the one-year period ended March 31, 2017. In the course of their deliberations, the Trustees also took into account information provided by Barings during investment review meetings conducted with portfolio management personnel during the course of the year. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the Agreements, that they were satisfied with the performance achieved by Barings and BGA.

The Trustees considered the investment management fee paid by each Fund to Barings pursuant to the Management Agreement. The Trustees noted that Barings (and not the BGA Funds) pays BGA its sub-advisory fee under the Sub-Advisory Agreement. In assessing the reasonableness of the fee paid by the Funds under the Management Agreement, the Trustees considered, among other information, each Fund’s advisory fee and the total expense ratio for the Fund’s shares as a percentage of net asset value and the advisory fee and total expense ratios of peer groups of funds based on information provided by Broadridge. The Trustees considered that, according to the Broadridge data (which takes into account any fee reductions or expense limitations that were in effect during the last fiscal year), the effective advisory fee rate and total expense ratio for each Fund’s Class I shares were as follows: Barings Global Floating Rate Fund’s effective advisory fee rate was lower than the Broadridge expense group median and total expense ratio was lower than the Broadridge expense group average; Barings Global Credit Income Opportunities Fund’s effective advisory fee rate was lower than the Broadridge expense group median and total expense ratio was lower than the Broadridge expense group average; Barings Active Short Duration Bond Fund’s effective advisory fee rate was lower than the Broadridge expense group median and total expense ratio was lower than the Broadridge expense group average; Barings Total Return Bond Fund’s effective advisory fee rate was in-line with the Broadridge expense group median and total expense ratio was lower than the Broadridge expense group average; Barings Emerging Markets Debt Blended Total Return Fund’s effective advisory fee rate was in-line with the Broadridge expense group median and total expense ratio was lower than the Broadridge expense group average; Barings Emerging Markets Local Currency Debt Fund’s effective advisory fee rate was in-line with the Broadridge expense group median and total expense ratio was higher than the Broadridge expense group average; Barings Global High Yield Fund’s effective advisory fee rate was lower than the Broadridge expense group median and total expense ratio was lower than the Broadridge expense group average; and Barings U.S. High Yield Fund’s effective advisory fee rate was lower than the Broadridge expense group median and total expense ratio was lower than the Broadridge expense group average.

The Trustees then considered that, as each Fund’s assets increase, each Fund and its shareholders would be expected to realize economies of scale as certain expenses, such as fixed operating costs, become a smaller percentage of overall assets. They considered the extent to which any such savings would benefit shareholders and Barings’ statement that it would consider proposing breakpoints in the management fee payable by a Fund once a Fund approached the break-even point. The Trustees noted that Barings has instituted caps on expenses that insulate shareholders from the effects on expenses of the Funds’ relatively small size.

The Trustees reviewed information prepared by Barings regarding Barings’ costs of managing the Funds, and the profitability of the Management Agreement to Barings. In considering the profitability of Barings, the Board noted that BGA is an affiliate of Barings and is paid by Barings, and, therefore, did not consider BGA’s profitability separately. The Trustees then considered potential “fall-out” benefits to Barings and its affiliates as a result of Barings’ relationship with the Trust. The Board concluded that, in light of the expected costs of providing investment management and other services to the Trust and Barings’ commitment to cap the expenses of each Fund, the other ancillary benefits that Barings and its affiliates expect to receive supported the approval of the Agreements. The Trustees concluded that, at this time, and in light of the nature, extent and quality of the respective services provided by Barings, the fee rates and expenses of each Fund supported the approval of the Management Agreement and the Sub-Advisory Agreement.

Based on their evaluation of factors that they deemed to be material, including those factors described above, the Board of Trustees, including the Independent Trustees, concluded that the Management Agreement and the Sub-Advisory Agreement should be continued for an additional one-year period through August 2018.

223

    Barings Funds Trust

Item 2. Code of Ethics.

Not applicable to this semi-annual report.

Item 3. Audit Committee Financial Expert.

Not applicable to this semi-annual report.

Item 4. Principal Accountant Fees and Services.

Not applicable to this semi-annual report.

Item 5. Audit Committee of Listed Registrants.

Not applicable to this semi-annual report.

Item 6. Schedule of Investments.

(a) The Registrant’s Consolidated Schedule of Investments as of the close of the reporting period is included in the Semi-Annual Report to Shareholders filed under Item 1 of this form.

(b) Not applicable.

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

Not applicable.

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 Registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a) The Registrant’s principal executive officer and principal financial officer, or persons performing similar functions, have concluded that the Registrant’s 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 a 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 Registrant’s 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 Registrant’s internal control over financial reporting.

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

(a) Not applicable.

(b) Not applicable.

Item 13. Exhibits.

(a)(1) The Registrant has posted its Code of Ethics on its website at

www.barings.com/assets/user/media/Open-End-Fund-Code-of-Ethics.pdf..

(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)	Barings Funds Trust
By (Signature and Title)	/s/ Duncan Robertson
	Duncan Robertson, President (Principal Executive Officer)

Date March 9, 2018

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/ Duncan Robertson
	Duncan Robertson, President (Principal Executive Officer)

Date March 9, 2018

By (Signature and Title)	/s/ Carlene Pollock
	Carlene Pollock, Chief Financial Officer (Principal Financial Officer)

Date March 9, 2018

EX-99.CERT

Exhibit 99.1 Cert

CERTIFICATIONS

I, Duncan Robertson, certify that:

1. I have reviewed this report on Form N-CSR of Barings 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 registrant’s 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 registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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

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

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

March 9, 2018	/s/ Duncan Robertson
Date	Duncan Robertson, President (Principal Executive Officer)

Exhibit 99.2 Cert

CERTIFICATIONS

I, Carlene Pollock, certify that:

1. I have reviewed this report on Form N-CSR of Barings 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 registrant’s 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 registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

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

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

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

March 9, 2018	/s/ Carlene Pollock
Date	Carlene Pollock, Chief Financial Officer (Principal Financial Officer)

EX-99.906CT

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 Barings Funds Trust, does hereby certify, to such officer’s knowledge, that the report on Form N-CSR of Barings Funds Trust for the period ended December 31, 2017, 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 Barings Funds Trust for the stated period.

/s/ Duncan Robertson	/s/ Carlene Pollock
Duncan Robertson President	Carlene Pollock Chief Financial Officer
Dated: March 9, 2018

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