N-CSR

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: June 30, 2019

Item 1. Reports to Stockholders.

The Annual Report to Shareholders is attached hereto.

BARINGS FUNDS TRUST

Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website http://www.barings.com/, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-877-766-0014.

Beginning on January 1, 2019, you may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-877-766-0014 to inform the Fund that you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the fund complex if you invest directly with the Fund.

Annual Report

June 30, 2019

BFT Service Providers

ADVISER

Barings LLC

300 South Tryon Street

Suite 2500

Charlotte, NC 28202

SUB-ADVISER

Barings International Investments Limited

20 Old Bailey

London, UK

EC4M 7BF

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

DST Asset Manager Solutions, Inc.

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.

QUARTERLY PORTFOLIO HOLDINGS

The funds in the Trust file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an attachment to Form N-PORT. The funds’ Form N-PORT are available on the SEC’s website at http://www.sec.gov. 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.

Daniel McGee

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 Diversified Income Fund

Barings Emerging Markets Debt Blended Total Return Fund

Barings Global Emerging Markets Equity Fund

Barings Global High Yield Fund

Barings U.S. High Yield Fund

Dear Shareholder,

Thank you, as always, for your continued trust and partnership. The first half of the year certainly kept investors on their toes, as political tensions escalated and trade wars continued to dominate headlines. Amid growing uncertainty, global monetary policy turned markedly dovish. But the news is not all bad – while the economy is slowing, it is – notably – still growing. Further, in 2019 to date, the U.S. has experienced a recovery in productivity, along with decent wage growth, low unemployment and still-strong consumer spending. Across the fixed income markets, we believe that corporate fundamentals appear stable, and defaults generally remain low. From a bottom-up, fundamental research perspective, our investment teams believe there is still value to be found across both developed and emerging markets.

Despite the uptick in market volatility, our funds have continued to perform well and add value, with five out of seven established funds (institutional share class) having been awarded four stars or more by Morningstar as of June 30, 2019. Seven of our eight funds now have a 3-year track record, and two have reached their 5-year marks.

As we look ahead to the remainder of 2019 – and move through the later stages of an elongated credit cycle – the possibility of a recession is weighing on many investors’ minds. Looking across the markets today, we think it is important to keep in mind that there are a number of key signals to monitor when it comes to the health of the economy. Further, while downturns do come, and we are undoubtedly closer to one today than we were three or five years ago, we do not expect the next recession to be as severe or long-lasting as the 2007-2008 financial crisis. As such, our primary focus at Barings continues to be on bottom-up security selection across all asset classes.

Throughout the ups and downs of economic cycles, and through periods of volatility and risk, we remain committed to delivering you, our shareholders, with strong, through-the-cycle, risk-adjusted returns. Our mutual fund platform offers a wide range of institutional-quality investment strategies across fixed income and equity, and through a dedicated focus on rigorous, fundamental analysis, aims to provide innovative solutions to meet investors’ evolving needs.

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,

Daniel McGee

President

The statements and opinions expressed are those of the author as of the date of this report. All information is historical and not indicative of future results and subject to change. This information is not a recommendation to buy or sell any security.

Barings Global Floating Rate Fund 2019 Annual Report

Investment Objective

Barings Global Floating Rate Fund (“Global Floating Rate Fund” or the “Fund”) seeks a high level of current income. Preservation of capital is a secondary goal.

Portfolio Management Commentary

How did the Fund perform?

∎ The Fund reported a net total rate of return for the annual reporting period from July 1, 2018 through June 30, 2019 of +3.03%, underperforming the Credit Suisse Global Loan Benchmark (the Benchmark), which returned +4.51%.^1,6

What factors influenced performance of the Fund?

∎ An elevated amount of net outflows from U.S. bank loan retail funds during the final two months of the year weighed heavily on performance in the global loan markets. This market technical resulted in greater volatility in the North American market than in Europe, for both the decline at the end of 2018 and a sharp rebound at the beginning of 2019.

∎ From a regional perspective, Fund’s the allocations between the North American and European markets did not have a material impact on performance, although underperformance by some of the Fund’s holdings in the North American market was the primary driver of the Fund’s underperformance during the period.

∎ The Fund’s underperformance in the energy sector (based on the Benchmark’s Credit Suisse industry sectors) was the top detractor from performance relative to the Benchmark during the quarter, followed by underperformance in the food/tobacco and consumer durables sectors. Outperformance by the Fund’s holdings in the information technology sector provided a partial offset to the sectors that underperformed.

∎ With a healthy return during the reporting period, the Fund’s modest allocation to cash, which averaged 5.5%, was a detractor from performance comparisons.

∎ From a ratings category perspective, loans rated BB in the market modestly outperformed loans rated single-B, and therefore the Fund’s overweight position to single-B-rated loans was a slight detractor to performance during the period.

Describe recent portfolio activity.

∎ At the beginning of the fiscal year period, the Fund shifted exposure from the North American market to Europe, as we believed that market was offering attractive relative value at that time. Toward the end of 2018 and the beginning of 2019, the Fund started to shift exposure back to the North American market, seeking to take advantage of some of the discounted levels available in the market following the volatility in the fourth quarter. From a regional perspective, the Fund has not made shifts between the two regions in recent months.

∎ Over the fiscal year, there were no changes in the Fund’s top three industry exposures based on Moody’s industries. The Fund’s three largest sectors were health care, education and child care, diversified/conglomerate services, and chemicals, plastics and rubber. The Fund has decreased some of its top industry exposure in the healthcare, education and child care sector.

^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 the net asset value (NAV) of shares of the Fund 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. All returns 1-year or less are cumulative.

^6.  Benchmark A: 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 2019 Annual Report

∎ By ratings category, the Fund increased exposure to the BB category with a slight bias toward higher quality loans. The Fund’s non-publicly rated exposure has decreased as more of the Fund’s holdings are publicly rated.

Describe portfolio positioning at period end.

∎ The Fund finished the twelve-month reporting period, ending June 30, 2019, with 84.3% allocated to global senior secured loans, 9.3% to global senior secured high yield bonds and 5.8% to cash. A minor position in equity and other holdings accounted for 0.6% of Fund holdings by market value.

∎ From an industry perspective (based on Moody’s industries), the Fund remains well diversified across a number of sectors, with concentrations in health care, education and child care (10.4%), diversified/conglomerate services (10.2%), and chemicals, plastics and rubber (7.2%), as of June 30, 2019.

∎ As of June 30, 2019, the Fund had the following credit quality breakdown: 2.0% in BBB assets, 25.7% in BB assets, 58.2% in single-B assets, and 5.2% in CCC and below assets. Approximately 3.2% of the Fund’s assets are non-publicly rated. Cash and accrued income accounted for the remaining 5.8% of the portfolio assets.²

∎ The top five countries in the portfolio at the end of the reporting period were the U.S. (61.0%), the U.K. (11.6%), Germany (7.9%), the Netherlands (3.4%) and France (3.0%). Overall, the Fund has exposure to 17 different countries, and we continue to focus on building a well-diversified portfolio of global floating rate securities.

Describe market and portfolio outlook.

∎ In our view, corporate fundamentals overall remain relatively healthy. Growth appears to be slowing but measured, and we believe most companies have capital structures in place that can withstand and adjust to a slowdown. We believe that defaults are stable in the current market, and we do not expect to see a material or widespread increase in the near term.

∎ As will always be the case, there continues to be individual companies or segments of the market that face headwinds. Having said that, overall expectations are that there will not be a material increase in corporate defaults in the near term, and we believe that trading levels are compensating investors for a higher level of defaults than what corporate fundamentals suggest.

∎ We currently see better relative value opportunities in the North American market relative to the European market, although that can change as we saw during the last fiscal year period.

^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, single-A, and BBB are investment grade ratings categories used by S&P and Fitch; BB, single-B, CCC/CC/C and single-D are below investment grade ratings categories used by S&P and Fitch. Aaa, Aa, single-A and Baa are investment grade ratings categories used by Moody’s; Ba, B, Caa/Ca and single-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.

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Barings Global Floating Rate Fund 2019 Annual Report

PORTFOLIO COMPOSITION (% OF ASSETS*)

* As of June 30, 2019.

COUNTRY COMPOSITION (% OF ASSETS**)

** Percentage of assets are expressed by market value excluding cash and accrued income, and may vary over time. As of June 30, 2019.

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Barings Global Floating Rate Fund 2019 Annual Report

% AVERAGE ANNUAL TOTAL RETURNS 5,7,8	INCEPTION DATE		ONE YEAR			THREE YEARS			INCEPTION TO DATE
Class A With Load		09/16/2013		-0.31	%		4.31	%		3.04	%
Class A No Load		09/16/2013		2.77	%		5.38	%		3.58	%
Class C With Load		09/16/2013		1.04	%		4.61	%		2.82	%
Class C No Load		09/16/2013		2.02	%		4.61	%		2.82	%
Class I With Load		09/16/2013		3.04	%		5.64	%		3.88	%
Class I No Load		09/16/2013		3.04	%		5.64	%		3.88	%
Class Y With Load		09/16/2013		3.03	%		5.64	%		3.86	%
Class Y No Load		09/16/2013		3.03	%		5.64	%		3.86	%

^3.  Duration is a measure of the sensitivity of the price – the value of principal – of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Bond prices are said to have an inverse relationship with interest rates. Therefore, rising interest rates indicate bond prices are likely to fall, while declining interest rates indicate bond prices are likely to rise.

^4.  Inception date: September 16, 2013.

^5.  Class A performance with the sales charges includes the maximum 3.00% sales charge.

^6.  Benchmark A: 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.

^7.  Line graph and table do not reflect the deduction of taxes that a shareholder would pay.

^8.  Class C performance with the sales charges includes the 1.00% contingent deferred sales charge (CDSC) for returns of one year or less.

5

Barings Global Credit Income Opportunities Fund 2019 Annual Report

Investment Objective

Barings Global Credit Income Opportunities Fund (“Global Credit Income Opportunities Fund” or the “Fund”) seeks 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 annual reporting period from July 1, 2018 through June 30, 2019 of +2.64%, and underperformed the 3-Month USD London Inter-Bank Offered Rate (LIBOR) plus 500 basis points¹ (the Benchmark), which returned +7.67%.^2,6

What factors influenced performance of the Fund?

∎ Volatility increased toward the end of 2018 across below investment grade asset classes. The decline was greater in North American markets and, given that those markets are larger than the European markets, weighed on the Fund’s performance. In addition, high yield bonds rebounded more sharply than senior secured loans to start 2019, which affected Fund performance.

∎ For the Fund’s holdings, high yield bonds were the top performing asset class during the period, followed by senior secured loans and collateralized loan obligations (CLOs).

∎ From a regional perspective, the Fund’s holdings in the European market outperformed the North American holdings.

∎ From a ratings category perspective, BB-rated credits in the high yield bond and senior secured loan markets performed strongly. The Fund’s BB-rated holdings outperformed the single-B-rated holdings during the fiscal year period; however, a higher weighting to single-B holdings relative to BB affected performance results.

Describe recent portfolio activity.

∎ In regard to the Fund’s core asset classes, early in the period the Fund increased exposure to the European markets over North America.

∎ As a result of the volatility that began in the high yield bond markets in October 2018, the Fund shifted exposure from senior secured loans to high yield bonds. Then, in December 2018 and the beginning of 2019, as volatility increased in the senior secured loan markets, and in North America in particular, the Fund shifted exposure from North American high yield bonds to North American loans.

∎ Later during the reporting period, the Fund continued to shift exposure from high yield bonds to senior secured loans. At the end of the fiscal year, the Fund made a modest shift from North American high yield bonds to European high yield bonds.

∎ In regard to the opportunistic asset classes, the Fund reduced some of its exposure to CLOs to allow flexibility to allocate to the asset class at a more attractive entry point later.

∎ In general, as these portfolios build over time, the Fund intends to deploy cash into asset classes which we believe offers the best relative value at that time, and will shift exposure between asset classes as relative value opportunities change.

^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 the net asset value (NAV) of shares of the Fund 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. All returns 1-year or less are cumulative.

^6. Benchmark: 3-Month USD LIBOR plus 500 bps. 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 (three months) in England’s Euro dollar 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.

6

Barings Global Credit Income Opportunities Fund 2019 Annual Report

∎ By ratings category, the Fund decreased exposure to CCC-rated holdings.

∎ From an industry sector perspective, the most notable change has been a decrease in the Fund’s exposure to the oil and gas sector.

Describe portfolio positioning at period end.

∎ The Fund finished the annual reporting period, ended June 30, 2019, with an allocation of 41.2%, 40.0% and 11.5% to global high yield bonds, global senior secured loans and CLOs, respectively. The remainder of the portfolio was invested in equities at 0.9%, and cash/other at 6.5%. A significant portion of the portfolio (approximately 68.8%) was senior secured in nature (including CLOs backed by secured loans), which can potentially mitigate principal loss in the event that default rates increase.

∎ From an industry perspective, the Fund was well diversified across a number of sectors, with concentrations in health care, education and child care (9.4%), diversified/conglomerate services (8.3%), and broadcasting and entertainment (6.1%) as of June 30, 2019.

∎ As of June 30, 2019, the Fund had the following credit quality breakdown: 1.8% in BBB assets, 33.4% in BB assets, 45.3% in single-B assets, and 9.9% in CCC and below assets. Approximately 3.1% of the Fund’s assets are not publicly rated. Cash and accrued income accounted for the remaining 6.5% of the portfolio assets.³

∎ The top five countries in the portfolio at the end of the reporting period were the U.S. (58.4%), the U.K. (12.0%), Germany (6.1%), the Netherlands (3.4%) and Ireland (2.5%). The Cayman Islands exposure related to the Fund’s CLO holdings was included in the U.S. Overall, the Fund had exposure to 17 different countries, and we continue to focus on building a well-diversified portfolio of global high yield securities.

Describe market and portfolio outlook.

∎ In our view, corporate fundamentals overall remain relatively healthy. Growth appears to be slowing but measured, and we believe most companies have capital structures in place that can withstand and adjust to a slowdown. Defaults appear to be stable in the current market, and we do not expect to see a material or widespread increase in the near term.

∎ As will always be the case, there continues to be individual companies or segments of the market that face headwinds. Having said that, market expectations are that there will not be a material increase in corporate defaults in the near term, and we believe that trading levels are compensating investors for a higher level of defaults than what corporate fundamentals suggest.

∎ We currently see better relative value opportunities in the North American market relative to the European market, although that can change as we saw during the last fiscal year period. Additionally, in this market we currently have a bias towards being in the senior and secured portion of the capital structure.

^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, single-A, and BBB are investment grade ratings categories used by S&P and Fitch; BB, single-B, CCC/CC/C and single-D are below investment grade ratings categories used by S&P and Fitch. Aaa, Aa, single-A and Baa are investment grade ratings categories used by Moody’s; Ba, single-B, Caa/Ca and single-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.

7

Barings Global Credit Income Opportunities Fund 2019 Annual Report

PORTFOLIO COMPOSITION (% OF ASSETS*)

* As of June 30, 2019.

COUNTRY COMPOSITION (% OF ASSETS**)

** Percentage of assets are expressed by market value excluding cash and accrued income, and may vary over time. As of June 30, 2019.

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Barings Global Credit Income Opportunities Fund 2019 Annual Report

% AVERAGE ANNUAL TOTAL RETURNS 5,7,8	INCEPTION DATE		ONE YEAR			THREE YEARS			INCEPTION TO DATE
Class A With Load		09/16/2013		-1.71	%		5.16	%		3.78	%
Class A No Load		09/16/2013		2.39	%		6.60	%		4.46	%
Class C With Load		09/16/2013		0.67	%		5.81	%		3.68	%
Class C No Load		09/16/2013		1.63	%		5.81	%		3.68	%
Class I With Load		09/16/2013		2.65	%		6.87	%		4.72	%
Class I No Load		09/16/2013		2.65	%		6.87	%		4.72	%
Class Y With Load		09/16/2013		2.64	%		6.87	%		4.72	%
Class Y No Load		09/16/2013		2.64	%		6.87	%		4.72	%

^4.  Inception date: September 16, 2013.

^5.  Class A performance with the sales charges includes the maximum 4.00% sales charge.

^6. Benchmark: 3-Month USD LIBOR plus 500 bps. 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 (three months) in England’s Euro dollar 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.

^7.  Line graph and table do not reflect the deduction of taxes that a shareholder would pay.

^8. Class C performance with the sales charges includes the 1.00% contingent deferred sales charge (CDSC) for returns of one year or less.

9

Barings Active Short Duration Bond Fund 2019 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 period from July 1, 2018 through June 30, 2019 of +3.78%, underperforming the Bloomberg Barclays U.S. 1-3 Year Government Bond Index (the Benchmark), which returned 4.02%.^1,5

What factors influenced performance of the Fund?

∎ A shorter duration position contributed negatively to performance relative to the Benchmark as rates declined. The Fund uses Treasury bonds and futures to help manage duration. The front end of the Treasury yield curve remains inverted between three months and three years. Markets are now anticipating that the next rate move will likely be a decrease in the Federal Funds Rate, which is in stark contrast with the sentiment in the second half of 2018, when further tightening was expected. The Fund ended the period with a 0.37 year duration in accordance with our rules-based duration management process.

∎ We continue to favor securitized credit over corporate credit, emphasizing structure over unsecured positions. The Fund’s allocation to consumer asset-backed securities (ABS) was a positive contributor to performance. Student loans were the primary contributor within the securitized sector. We continue to find that federal family education loan program (FFELP) student loans offer good value trading, with a spread of 70 basis points (bps) over the London Inter-Bank Offered Rate (LIBOR) – with an explicit government guarantee and strong technical created by the discontinuation of the FFELP program in 2010.

∎ The Fund’s allocation to investment grade credit contributed positively to performance. Corporate spreads tightened over the recent six-month period, which was a contrast from the widening experienced during a volatile fourth quarter in 2018. Allocations to banking, leasing, and diversified telecom were the top performing industry positions.

∎ The Fund’s small position in high quality collateralized loan obligation (CLO) tranches was also a positive contributor. The Fund is invested in AAA-rated and select AA-rated tranches. We continue to like the structural subordination offered by CLOs, and favor high quality managers.²

^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 the net asset value (NAV) of shares of the Fund 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. All returns one-year or less are cumulative.

^2. Ratings shown are the highest ratings 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, single-A and BBB are investment grade ratings categories used by S&P and Fitch. BB, single-B, CCC/CC/C and single-D are below investment grade ratings categories used by S&P and Fitch. Aaa, Aa, single-A and Baa are investment grade ratings categories used by Moody’s. Ba, single-B, Caa/Ca and single-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.

^5.  Benchmark: The Bloomberg Barclays U.S. 1-3 Year Government Bond Index is comprised of the U.S. Treasury Index and U.S. Agency Index. 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 three years. Indexes are unmanaged. It is not possible to invest directly in an index.

10

Barings Active Short Duration Bond Fund 2019 Annual Report

Describe recent portfolio activity.

∎ The Fund ended the period with a duration position of 0.37 years, as the basis between three-month and one-year remains inverted.

∎ The Fund marginally reduced lower quality BBB-rated corporate bond exposure and added to several consumer asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS) deals, favoring the structures these deals provide, and viewing positive technicals and fundamentals in these areas.

Describe portfolio positioning at period end.

∎ The Fund continues to be well diversified across corporate, securitized and government sectors. The securitized ABS allocation was 40.7% at the end of the period. Student loans represented the largest allocation, followed by automotive loan collateral. Further commercial ABS sub-sectors include timeshare, consumer loan, aircraft leasing and whole business receivables deals. The Fund has maintained an active position in CMBS, given strong technicals and still-supportive fundamentals. Allocations were in broadly syndicated deals with a diverse investor base, providing strong liquidity profiles.

∎ At the end of the period, the corporate allocation was at approximately 35.1%, with 32.9% in investment grade corporates, 1.4% in BB-rated and crossover high yield, and 0.8% in U.S. dollar denominated emerging markets. Banks/brokers and food/beverage/tobacco represent the Fund’s largest corporate allocations, followed by chemicals and independent finance.

∎ High quality AAA and AA quality CLO tranches represented a combined 4.3% allocation for the Fund.

Describe market and portfolio outlook.

∎ Investors remain largely on the defensive. A continuation of dovish comments from U.S. Federal Reserve (Fed) Chair Jerome Powell, prior to the second quarter’s coined “Powell Pivot,” led to positive sentiment among high grade investors globally. But the reaction was short-lived, and investors went back on the defensive amid growing uncertainty around a number of macro events. We believe that a Fed on pause, or even ready to cut rates, should translate into a supportive environment for high quality credit, as investors begin to venture more toward risk assets. But rallying Treasury rates are putting an upward technical on corporate spreads, as the yield curve continues to flatten.

∎ In our view, corporate spreads may not tighten with the same velocity that they had at the end of the second quarter, but the odds that spreads continue to tighten are much higher than they were. Given the current level of spreads, we believe that investors will likely balk at some additional tightening, but probably not until it reaches 10 to 15 bps tighter. Spread widening is still a potential, but as long as investors do not foresee a recession in the next 12 months, we believe that it should be limited.

∎ Within securitized sectors, increased rate volatility and macro concerns have weighed negatively on recent spread performance. Rate sensitive sectors were most impacted by spread widening. These sectors – which widened between 15 and 25 bps – included franchise receivables, containers and aviation. The team is anticipating an increase in “non-traditional” ABS issuance in sectors such as consumer and marketplace loans, aircraft receivables, whole business, fleet leases, container, solar and cell tower deals. Macro volatility has increased, but we expect technicals to improve and remain favorable.

11

Barings Active Short Duration Bond Fund 2019 Annual Report

CREDIT QUALITY BREAKDOWN (% OF ASSETS*)

* As of June 30, 2019.

PORTFOLIO COMPOSITION (% OF ASSETS*)

* As of June 30, 2019.

12

Barings Active Short Duration Bond Fund 2019 Annual Report

% AVERAGE ANNUAL TOTAL RETURNS 3,4,6,7	INCEPTION DATE		ONE YEAR			THREE YEARS			INCEPTION TO DATE
Class A With Load		07/08/2015		3.52	%		2.24	%		1.98	%
Class A No Load		07/08/2015		3.52	%		2.24	%		1.98	%
Class C With Load		07/08/2015		2.73	%		2.16	%		1.72	%
Class C No Load		07/08/2015		3.23	%		2.16	%		1.72	%
Class I With Load		07/08/2015		3.78	%		2.53	%		2.25	%
Class I No Load		07/08/2015		3.78	%		2.53	%		2.25	%
Class Y With Load		07/08/2015		3.78	%		2.50	%		2.23	%
Class Y No Load		07/08/2015		3.78	%		2.50	%		2.23	%

^3. Inception date: July 8, 2015.

^4. Class A performance, the class does not have a sales charge.

^5.  Benchmark: The Bloomberg Barclays U.S. 1-3 Year Government Bond Index is comprised of the U.S. Treasury Index and U.S. Agency Index. 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 three years. Indexes are unmanaged. It is not possible to invest directly in an index.

^6.  Line graph and table do not reflect the deduction of taxes that a shareholder would pay.

^7. Class C performance with the sales charges includes the 1.00% contingent deferred sales charge (CDSC) for returns of one year or less.

13

Barings Diversified Income Fund 2019 Annual Report

Investment Objective

The Barings Diversified Income Fund (f/k/a the Barings Total Return Bond Fund) seeks to provide a total return comprised of current income and capital appreciation.

Portfolio Management Commentary

How did the Fund perform?

∎ The Fund reported a net total rate of return for the reporting period from July 1, 2018 through June 30, 2019 of +4.01%, underperforming the Bloomberg Barclays U.S. Aggregate Index, which returned +7.87%. The Fund was benchmarked to the Bloomberg Barclays U.S. Aggregate Index prior to March 1, 2019 when it changed its strategy and its benchmark to 3-Month LIBOR plus 250 (“New Benchmark”). The Fund is not managed relative to the benchmark, however, the comparison is provided to show how the Fund’s returns compare with those of a broad measure of market performance. Since the strategy change, the Fund overperformed the New Benchmark, which returned 1.65%.

What factors influenced performance of the Fund?

∎ High quality collateralized loan obligation (CLO) positioning in AA to BBB rated tranches contributed positively to performance. This has proven to be a positive allocation for Fund performance, as spreads have largely grown tighter since the beginning of the year.

∎ We continue to favor securitized credit over corporate credit, emphasizing structure over unsecured positions. The Fund’s allocation to consumer asset-backed securities (ABS) was a positive contributor to performance. Student loans were the primary contributor within the securitized sector. We find that federal family education loan program (FFELP) student loans offer good value, trading with a spread of 70 basis points (bps)¹ over the London Inter-Bank Offered Rate (LIBOR)² – with an explicit government guarantee and strong technical created by the discontinuation of the FFELP program in 2010.

∎ Investment grade corporate credit across both developed and emerging market geographies was a positive contributor to performance. Developed market corporate spreads tightened over the recent six-month period, which was a contrast from the widening experienced during a volatile fourth quarter in 2018. Emerging market corporate spreads followed a similar path over the period, with spreads compressing despite growing macro uncertainties, which also contributed to the positive performance. Banking, gas pipelines and retail stores were the strongest performing industries over the period.

Describe recent portfolio activity.

∎ Effective March 1, 2019, the Barings Total Return Bond Fund changed its name and strategy to the Barings Diversified Income Fund. The Fund converted its asset composition consistent with the new strategy during the two-month period between March and May.

∎ Based on the conversion of the Fund, the portfolio allocations were shifted in accordance with target weights established by the Barings Allocation Committee.

∎ Recent allocation changes include decreases to developed market investment grade credit and high quality CLO tranches, and increases to securitized credit and BBB-rated emerging market corporate debt.

∎ The Fund ended the period with a duration position of 0.51 years, as the basis between three-month and one-year remains inverted.

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

²  LIBOR (London Interbank Offered Rate) is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.

14

Barings Diversified Income Fund 2019 Annual Report

Describe portfolio positioning at period end.

∎ High quality CLO tranches represented the Fund’s largest allocation, at 36.2%. We continue to favor the total return potential and structural subordination of CLOs, and favor AA to BBB quality tranches.

∎ The securitized ABS allocation was 20.3% at the end of the period. Student loans (both FFELP and private) represented the largest allocation, followed by aircraft lease collateral. Further commercial ABS sub-sectors included shipping container, rental car and equipment leasing deals. The Fund maintained a small (5.3%) position in commercial mortgage-backed securities (CMBS), given strong technicals and still-supportive fundamentals. This was a tactical trade that the Fund put on earlier in the quarter, as we expected new issue supply to slow and cause spreads to compress. We then began to sell down the CMBS positions in the Fund, capturing total return before new issue started to come to market, causing spreads to once again widen out on increased new supply.

∎ Emerging market hard currency positioning was 12.1% at the end of the period. The Fund continues to favor BBB quality positioning in this area, given the spread differential between emerging and developed market issues, leading to an attractive yield pickup. The Fund has maintained a lower spread duration³ and favoring short-dated bonds.

∎ Investment grade corporates represent a 15.4% allocation. The Fund has favored BBB-rated positions in less cyclical industries such as consumer products, food/beverage/tobacco and lodging/gaming/leisure, while maintaining a short spread duration.

Describe market and portfolio outlook.

∎ Investors remain largely on the defensive. A continuation of dovish comments from U.S Federal Reserve (Fed) Chair Jerome Powell, prior to the second quarter’s coined “Powell Pivot,” led to positive sentiment among high grade investors globally. But the reaction was short-lived, and investors went back on the defensive amid growing uncertainty around a number of macro events. We believe that a Fed on pause, or even ready to cut rates, should translate into a supportive environment for high quality credit, as investors begin to venture more toward risk assets. But rallying Treasury rates are putting an upward technical on corporate spreads, as the yield curve continues to flatten.

∎ Within securitized sectors, increased rate volatility and macro concerns have weighed negatively on recent spread performance. Rate sensitive sectors were most impacted by spread widening. These sectors – which widened 15 to 25 bps – included franchise receivables, containers and aviation. The team is anticipating an increase in “non-traditional” ABS issuance, in sectors such as consumer and marketplace loans, aircraft receivables, whole business, fleet leases, container, solar and cell tower deals. Macro volatility has increased, but we expect technicals to improve and remain favorable.

∎ In our view, corporate spreads may not tighten with the same velocity that they had at the end of the second quarter, but the odds that spreads continue to tighten are much higher than they were. Given the current level of spreads, we believe that investors will likely balk at some additional tightening, but probably not until it reaches 10 to 15 bps tighter. Spread widening is still a potential, but as long as investors do not foresee a recession in the next 12 months, we believe that any spread widening should be limited.

³  Duration is a measure of the sensitivity of the price – the value of principal – of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Bond prices are said to have an inverse relationship with interest rates. Therefore, rising interest rates indicate bond prices are likely to fall, while declining interest rates indicate bond prices are likely to rise.

15

Barings Diversified Income Fund 2019 Annual Report

CREDIT QUALITY BREAKDOWN (% OF ASSETS*)

* As of June 30, 2019.

PORTFOLIO COMPOSITION (% OF ASSETS*)

* As of June 30, 2019.

16

Barings Diversified Income Fund 2019 Annual Report

% AVERAGE ANNUAL TOTAL RETURNS 3,4,6,7	INCEPTION DATE		ONE YEAR			THREE YEARS			INCEPTION TO DATE
Class A With Load		07/08/2015		-0.38	%		0.38	%		1.43	%
Class A No Load		07/08/2015		3.77	%		1.75	%		2.48	%
Class C With Load		07/08/2015		1.99	%		0.99	%		1.71	%
Class C No Load		07/08/2015		2.99	%		0.99	%		1.71	%
Class I With Load		07/08/2015		4.01	%		2.00	%		2.73	%
Class I No Load		07/08/2015		4.01	%		2.00	%		2.73	%
Class Y With Load		07/08/2015		4.01	%		2.00	%		2.73	%
Class Y No Load		07/08/2015		4.01	%		2.00	%		2.73	%

^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 the net asset value (NAV) of shares of the Fund 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. All returns one-year or less are cumulative.

^2. Ratings shown are the highest ratings 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, single-A and BBB are investment grade ratings categories used by S&P and Fitch. BB, single-B, CCC/CC/C and single-D are below investment grade ratings categories used by S&P and Fitch. Aaa, Aa, single-A and Baa are investment grade ratings categories used by Moody’s. Ba, single-B, Caa/Ca and single-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.

^3. Inception date: July 8, 2015. Diversified Income strategy change effective March 1, 2019.

^4. Class A performance with the sales charges includes the maximum 4.00% sales charge.

^5. The Fund’s benchmark was changed on March 1, 2019, in connection with the change to the Fund’s name and investment strategy because Barings believes that the new benchmark is more appropriate to the Fund’s current strategy. Benchmark Prior to Strategy Change Effective March 1, 2019: Bloomberg Barclays U.S. Aggregate. The benchmark includes domestic, taxable, dollar-denominated securities. The index covers U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities and asset-backed securities. It is not possible to invest directly in an index.

^1.  New Benchmark: 3-Month USD LIBOR plus 250 bps. 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 (three months) in England’s Euro dollar market. The return shown includes 3-Month USD LIBOR plus 250 bps, or 2.5% 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.

^6. Line graph and table do not reflect the deduction of taxes that a shareholder would pay.

^7.  Class C performance with the sales charges includes the 1.00% contingent deferred sales charge (CDSC) for returns of one year or less.

17

Barings Emerging Markets Debt Blended Total Return Fund 2019 Annual Report

Investment Objective

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?

∎ The Fund reported a net total rate of return for the period from July 1, 2018 through June 30, 2019 of +12.86%.¹ The net total rate of return for the Fund’s performance benchmark (a blend of 50% JPMorgan Government Bond Index – Emerging Markets Global Diversified (GBI-EMGD), 30% JPMorgan EMBI Global Diversified and 20% JPMorgan CEMBI Broad Diversified) was +10.13%. The Fund is not managed relative to the benchmark; however, the comparison is provided to show how the Fund’s returns compare with those of a broad measure of market performance.

∎ Each of the Fund’s three sub-strategies – emerging markets (EM) corporates, EM sovereign and EM local – generated positive performance over the period. This occurred as U.S. Treasury rates rallied 96 basis points (bps) over the past 12 months, alongside a dovish U.S. Federal Reserve (Fed) and European Central Bank (ECB), revisiting levels last seen in December 2016.

What factors influenced performance of the Fund?

∎ The Fund’s positioning, and active allocations across countries and credits, were additive to performance. The dovish shift in monetary policy expectations produced a bullish sentiment for external debt. EM local rallied as inflation across EM countries continued to be suppressed alongside low growth – leading central banks to continue their accommodative measures in the hopes of stimulating growth. EM currencies were stronger toward the end of June, despite lower commodity prices – led by the Russian Ruble, Thai Bhat, Czech Koruna and Argentine Peso, which rallied on the back of greater financial stability, positive political developments and rising consumer confidence. The U.S. and China continued their trade war, then called a temporary truce during the G-20 Summit, where Russia and Saudi Arabia additionally called to extend OPEC production cuts into 2020 as demand slows. EM debt flows have been strong in the first half of 2019, with $45.1 billion of positive flows during the year, mostly from hard currency, after just $0.13 billion in net flows for the second half of 2018.

∎ For the 12-month reporting period ending June 30, 2019, the Fund’s positioning in Brazil, Mexico, Ukraine and Turkey contributed positively to Fund performance. However, the Fund’s positions in Hungary, Russia and Thailand detracted from performance.

Describe recent portfolio activity.

∎ The Fund has recently increased its exposure to EM corporates to capture the higher yields on companies we believe to have strong potential. The Fund also increased exposure to EM sovereign hard currency assets, as spreads were overcompensating for defaults. The Fund decreased its exposure to local rates, but maintained its positioning on overall moderate growth, low inflation and high rates in select EM local markets – with the expectation that local rates will fall over the next 12 months in countries that are well managed and have falling inflation.

Describe portfolio positioning at period end.

∎ The Fund finished the reporting period, ended June 30, 2019, with a 40% exposure to EM corporate bonds, 32% to local debt and currencies, 30% to sovereign hard currencies (inclusive of Credit Default Swaps), and a 2.5% cash position.

^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 the net asset value (NAV) of shares of the Fund 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. All returns one-year or less are cumulative.

18

Barings Emerging Markets Debt Blended Total Return Fund 2019 Annual Report

∎ The top five countries in the portfolio at the end of the reporting period were Mexico (17.0%), Brazil (9.1%), Ukraine (8.5%), Turkey (6.6%) and Ghana (6.3%). The top five corporate issuers were MHP (2.6%), TBC Bank (2.6%), Turkiye Sinai Kalkinma Bankasi (2.4%), Petra Diamonds (2.1%) and Turkie Halk Bankasi (1.7%). Overall, the Fund had exposure to 31 countries, 31 corporates and 27 different currencies.

Describe market and portfolio outlook.

∎ We continue to have a constructive view on EM debt, as we believe valuations remain attractive on a fundamental basis. Generally, EMs do well during periods of central bank dovishness and positive economic growth. Although European growth is softening, we have not seen the type of sharp and sudden changes that are likely to derail economic growth across EMs. However, risks persist surrounding the ongoing trade negotiations between the U.S. and China, Persian Gulf tensions and other geopolitical events, interest rate moves and currency fluctuations.

∎ We continue to favor hard currency assets, as sovereign and corporate bonds are most attractive in the current environment, benefiting from lower rate expectations and healthy economic growth. We believe local rates will remain attractive, as governments continue to follow consolidation programs while trying to stimulate their economies. On a regional level, in our view, Latin America continues to provide some of the most attractive investment opportunities on a risk/return perspective, and we also find value in certain Eastern European hard currency high yield issuers. Overall, we favor countries that have the flexibility to adjust to an uncertain future in commodity process, core interest rates and developed market growth. Investors need to be selective, especially with respect to currencies without a tailwind for potential appreciation.

19

Barings Emerging Markets Debt Blended Total Return Fund 2019 Annual Report

PORTFOLIO COMPOSITION (% OF ASSETS*)

* As of June 30, 2019.

REGIONAL COMPOSITION (% OF ASSETS**)

** The percentages shown above are expressed by market value, excluding cash and accrued income, and may vary over time. As of June 30, 2019.

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

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

20

Barings Emerging Markets Debt Blended Total Return Fund 2019 Annual Report

% AVERAGE ANNUAL TOTAL RETURNS 2,3,5,6	INCEPTION DATE		ONE YEAR			THREE YEARS			INCEPTION TO DATE
Class A With Load		10/21/2015		8.08	%		5.77	%		5.39	%
Class A No Load		10/21/2015		12.59	%		7.21	%		6.56	%
Class C With Load		10/21/2015		10.78	%		6.44	%		5.80	%
Class C No Load		10/21/2015		11.78	%		6.44	%		5.80	%
Class I With Load		10/21/2015		12.86	%		7.49	%		6.83	%
Class I No Load		10/21/2015		12.86	%		7.49	%		6.83	%
Class Y With Load		10/21/2015		12.86	%		7.49	%		6.84	%
Class Y No Load		10/21/2015		12.86	%		7.49	%		6.84	%

^2.  Inception date: October 21, 2015.

^3.  Class A performance with the sales charges includes the maximum 4.00% sales charge.

^4.  Benchmark is a blend of 50% JPMorgan Government Bond Index – Emerging Markets Global Diversified (GBI-EMGD), 30% JPMorgan EMBI Global Diversified and 20% JPMorgan CEMBI Broad Diversified. JPMorgan GBIEM Global Diversified – Comprehensive index consisting of local emerging markets sovereign bonds. JPMorgan EMBI Global Diversified – Comprehensive index consisting of USD-denominated emerging markets sovereign bonds. JPMorgan CEMBI Broad Diversified – Comprehensive index consisting of USD-denominated emerging markets corporate bonds.

^5.  Line graph and table do not reflect the deduction of taxes that a shareholder would pay.

^6.  Class C performance with the sales charges includes the 1.00% contingent deferred sales charge (CDSC) for returns of one year or less.

21

Barings Global Emerging Markets Equity Fund 2019 Annual Report

Investment Objective

Barings Global Emerging Markets Equity Fund (the “Fund”) seeks to achieve long-term capital growth.

Portfolio Management Commentary

How did the Fund perform?

∎ The Fund reported a net rate of return for the period from its inception, September 17, 2018, through June 30, 2019 of 11.26%, outperforming the MSCI Emerging Markets Index (the Benchmark), which returned 5.62%.^1,4

What factors influenced performance of the Fund?

∎ During the period, the Fund outperformed its Benchmark, primarily due to stock selection.

∎ Contributors to relative Fund performance included the following:

∎ HDFC Bank, an Indian bank, outperformed on the back of earnings that demonstrated improving margins and strong growth momentum.

∎ Anglo American, a global mining company based in South Africa, performed well in the stronger commodity price environment, supported further by the company’s continued focus on value creation and increasing balance sheet strength.

∎ Rumo, a Brazilian logistics company, performed in response to expectations that U.S.-China trade tensions would increase the level of Brazilian soybean exports, a dynamic that would help support Rumo’s volumes going forward.

∎ Detractors to relative Fund performance included the following:

∎ Brilliance China Automotive, a Chinese automobile manufacturer that operates a joint venture with BMW, was negatively impacted by the announcement that BMW will increase its stake in the joint venture to 75%, leading to concern among investors that minority interests will be negatively impacted.

∎ Angang Steel, a Chinese Steel manufacturer, faced headwinds as market prices reflected concerns relating to a slowing of the Chinese economy and demand for steel.

∎ Samsonite, a Chinese Luggage manufacturer, underperformed as markets processed the near-term uncertainty created by trade tensions.

Describe recent portfolio activity.

∎ Q4 2018: The Fund initiated a position in Chinese luggage manufacturer Samsonite, and exited its positon in Chinese automobile manufacturer Brilliance China Automotive, following the announcement that BMW will increase its stake in the joint venture to 75%, leading to concern among investors that minority interests will be negatively impacted.

∎ Q1 2019: Over the course of the quarter, the Fund initiated a position in a leading Indian IT services company, Infosys, and a Russian energy producer, Novatek.

∎ Q2 2019: The Fund exited its position in a Brazilian cosmetics manufacturer, Natura, as the company reached its price target.

^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 the net asset value (NAV) of shares of the Fund 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. All returns one-year or less are cumulative. The performance comparator is MSCI Emerging Markets Total Return Index with net dividends.

^4.  Benchmark: MSCI Emerging Markets Total Return Index with net dividends designed to measure the equity market performance of the emerging markets. Indices are unmanaged. It is not possible to invest directly in an index.

22

Barings Global Emerging Markets Equity Fund 2019 Annual Report

∎ As medium- to long-term investors, we would expect the average annual turnover rate of the strategy to be 20-40%. The turnover for the Fund for the period from inception to June 30, 2019 was 7.1%, reflecting the relative attractiveness of the existing holdings relative to the overall emerging market (EM) opportunity set. Given the strong outperformance of the Fund’s holdings year-to-date (YTD), we believe it is reasonable to assume that turnover will likely trend upward over the next 12 months.

Describe portfolio positioning at period end.

∎ The Fund’s positioning at the end of the period reflected our bottom-up investment process – where we aim to identify companies with sustainable business franchises, and with future growth potential that is not fully reflected in the current share price. As a result, our active country and sector positioning relative to the Benchmark was not driven by a deliberate top-down strategy, but was a by-product of our bottom-up stock selection process.

∎ Relative to the Benchmark, the largest active country position was in China and the largest active sector exposure was to financials, where in each case we continue to identify many companies that we believe have strong medium-term growth prospects and are attractively valued.

∎ Despite the large active position in both cases, we believe that the performance of these companies will be influenced by company-specific factors (i.e. that these companies will be largely in control of their own destiny), rather than by correlation to their respective country or sector. As bottom-up investors, we always seek these types of companies.

∎ As of the end of the reporting period, the top five country weightings in the Fund, on an absolute basis, were China (36.4%), India (11.8%), Korea (10.2%), Taiwan (8.9%) and Brazil (6.4%). The Fund had exposure to 11 different countries, and in line with our investment process, we continue to seek out bottom-up investment opportunities where we believe the future earnings potential is not fully reflected in the current share price.

Describe market and portfolio outlook.

∎ We believe that confirmation that trade talks between China and the U.S. will resume, and that the ban on exports to Huawei will be temporarily lifted, is a near-term positive development for EM equities. However, with details lacking, it is unclear if any of the key areas of contention have been resolved. While our view remains that it is in both parties’ interest to resolve their differences, we are also mindful that there will likely be some more bumps on the road to a sustainable resolution, and so some continued volatility in markets should be expected.

∎ Once a resolution is achieved, we believe that investors are likely to focus back on the outlook for corporate profits in EM and the relative valuation versus developed market (DM) equities. Slowing economic growth and rising trade tensions have erased consensus forecast growth in EM corporate earnings for 2019. In our view, this may well prove too pessimistic given that monetary and fiscal policy across EM (and DM) is turning more accommodative. We believe that a return to double digit growth in corporate earnings next year and beyond seems reasonable, given the policy response, while a successful trade resolution would provide further upside to earnings forecasts.

∎ Meanwhile, the relative valuation of EM equities relative to DM equities remains very depressed, suggesting investors do not believe the earnings forecasts for EM are achievable. In our opinion, this makes EM equities a very compelling investment opportunity over the next year and beyond.

23

Barings Global Emerging Markets Equity Fund 2019 Annual Report

% AVERAGE ANNUAL TOTAL RETURNS 2,3,5,6	INCEPTION DATE		INCEPTION TO DATE
Class A With Load		9/17/2018		11.04	%
Class A No Load		9/17/2018		11.04	%
Class C With Load		9/17/2018		10.39	%
Class C No Load		9/17/2018		10.39	%
Class I With Load		9/17/2018		11.26	%
Class I No Load		9/17/2018		11.26	%
Class Y With Load		9/17/2018		11.26	%
Class Y No Load		9/17/2018		11.26	%

^2.  Inception date: September 17, 2018. A fund’s performance for very short time periods may not be indicative of future performance

^3. Class A performance with the sales charges includes the maximum 4.00% sales charge.

^4.  Benchmark: MSCI Emerging Markets Total Return Index with net dividends designed to measure the equity market performance of the emerging markets. Indices are unmanaged. It is not possible to invest directly in an index.

^5.  Line graph and table do not reflect the deduction of taxes that a shareholder would pay.

^6.  Class C performance with the sales charges includes the 1.00% contingent deferred sales charge (CDSC) for returns of one year or less.

24

Barings Global High Yield Fund 2019 Annual Report

Investment Objective

Barings Global High Yield Fund (“Global High Yield Fund” or the “Fund”) seeks 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 rate of return for the reporting period from July 1, 2018 through June 30, 2019 of +6.12%, and underperformed the Bank of America Merrill Lynch Non-Financial Developed Markets High Yield Constrained Index (the Benchmark), which returned +7.59%.^1,5

What factors influenced performance of the Fund?

∎ During the one-year period, the global high yield bond market saw strong positive performance despite significant volatility in the fourth quarter of 2018. After ending the calendar year negative, the high yield market rebound was swift and broad, driven by continued economic stability, dovish sentiment from central banks and persistently low inflation.

∎ In general, demand for lower quality paper remained truncated while BB-rated credits outperformed single-B and CCC-rated high yield bonds. As a result, the Fund’s underweight allocation to BB-rated holdings, and overweight allocation to the lower-rated categories relative to the Benchmark, were performance detractors. Security selection across rating categories with a significant portfolio weight was a positive contributor to Fund performance relative to the Benchmark.

∎ From an industry perspective, the Fund remained overweight in the oil and gas sector, which underperformed during the one-year period, resulting in a drag to relative performance. Additionally, credit selection in the space was a significant detractor. Health care, education and child care was also a notable laggard as a result of specific credits held in the Fund.

∎ Across geographies, the notable lag to performance relative to the Benchmark was credit selection in the U.S. Alternatively, credit selection in Europe contributed positively to relative performance. As it relates to the Fund’s regional weightings, an overweight allocation to Europe and underweight position in the U.S. detracted from performance versus the Benchmark as the U.S. market outperformed the European market during the period.

Describe recent portfolio activity.

∎ The Fund continues to favor the single-B-rated subset of the global high yield bond market because we believe it has superior relative value characteristics and a generally lower duration profile. However, the Fund’s exposure to single-B and CCC-rated holdings was moderately reduced as the market remained notably risk-averse after the fourth quarter volatility. The Fund increased its exposure to BB-rated holdings, which saw significant spread tightening during the course of the one-year period.

∎ Across industries, the Fund’s allocation to the oil and gas industry was reduced during the period, as the industry still continues to display higher volatility in tandem with crude oil prices. The sector remains the largest industry sector in the Fund by market value. The telecommunications sector was increased, along with the health care, education and child care sector.

^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 the net asset value (NAV) of shares of the Fund 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. All returns one-year or less are cumulative.

^5.  Benchmark: BofA Merrill Lynch Non-Fin. Developed Markets High Yield Constrained Index. The benchmark contains all securities in The BofA 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 (10 most widely traded currencies), a Western European nation, or a territory of the U.S. or a Western European nation. Indexes are unmanaged. It is not possible to invest directly in an index.

25

Barings Global High Yield Fund 2019 Annual Report

∎ The high yield market rally in the U.S. has outperformed the European market through the first half of 2019. The Fund increased its weighting to U.S. issuers during the period, while reducing European exposure.

Describe portfolio positioning at period end.

∎ The Fund finished the one-year period with a 33.4% weighting to senior secured high yield bonds, and a 54.8% weighting to senior unsecured high yield bonds. The balance of the portfolio was invested in senior secured loans (7.5%), and cash and accrued income (4.0%). A minor position in equity holdings acquired through bond restructurings accounted for 0.3% of Fund holdings by market value.

∎ From an industry perspective, the Fund remains diversified across a number of Moody’s-based industries, with higher concentrations in oil and gas (12.9%), telecommunications (10.0%), and health care, education and child care (9.3%), as of June 30, 2019.

∎ In terms of portfolio credit quality at the end of the period, the Fund had the following weighting breakdown: 3.0% in BBB, 37.7% in BB, 38.7% in single-B, 15.4% in CCC and below, and 4.0% in cash and accrued income. A small portion of the portfolio (1.2%) is designated as non-publicly rated, and is not rated by S&P, Moody’s or Fitch.²

∎ The top five countries in the portfolio as of June 30, 2019 were the U.S. (60.0%), the U.K. (15.1%), Germany (4.6%), France (2.7%) and Canada (2.4%). Overall, the Fund has exposure to 16 countries, and supports our focus on building a well-diversified portfolio of global high yield bonds.

Describe market and portfolio outlook.

∎ We believe that corporate fundamentals for high yield borrowers remain relatively healthy overall. As will always be the case, there continues to be individual companies or segments of the market that face headwinds.

∎ Market expectations are that there will not be a material increase in corporate defaults in the near term, and we believe that the recent volatility and trading levels are compensating investors for a higher level of defaults than what corporate fundamentals suggest.

∎ Additionally, while commentary and action by central banks can influence investor sentiment and result in movements of retail fund flows or trading levels, we believe that the central banks may continue to be willing to take steps to support growth, which can be supportive for high yield borrowers and investors.

^2. Ratings shown are the highest ratings 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, single-A and BBB are investment grade ratings categories used by S&P and Fitch. BB, single-B, CCC/CC/C and single-D are below investment grade ratings categories used by S&P and Fitch. Aaa, Aa, single-A and Baa are investment grade ratings categories used by Moody’s. Ba, single-B, Caa/Ca and single-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.

26

Barings Global High Yield Fund 2019 Annual Report

CREDIT QUALITY COMPOSITION (% OF ASSETS*)

* As of June 30, 2019.

COUNTRY COMPOSITION (% OF ASSETS**)

** The percentages shown above are expressed by market value excluding cash and accrued income, may vary over time. As of June 30, 2019.

27

Barings Global High Yield Fund 2019 Annual Report

% AVERAGE ANNUAL TOTAL RETURNS 4,6,7	INCEPTION DATE		ONE YEAR			THREE YEARS			INCEPTION TO DATE
Class A With Load		10/30/2015		1.56	%		5.82	%		5.98	%
Class A No Load		10/30/2015		5.79	%		7.27	%		7.17	%
Class C With Load		10/30/2015		4.15	%		6.51	%		6.41	%
Class C No Load		10/30/2015		5.13	%		6.51	%		6.41	%
Class I With Load		10/30/2015		6.13	%		7.56	%		7.45	%
Class I No Load		10/30/2015		6.13	%		7.56	%		7.45	%
Class Y With Load		10/30/2015		6.12	%		7.56	%		7.45	%
Class Y No Load		10/30/2015		6.12	%		7.56	%		7.45	%

^3.  Inception date: October 30, 2015.

^4.  Class A performance with the sales charges includes the maximum 4.00% sales charge.

^5.  Benchmark: BofA Merrill Lynch Non-Fin. Developed Markets High Yield Constrained Index. The benchmark contains all securities in The BofA 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 (10 most widely traded currencies), a Western European nation, or a territory of the U.S. or a Western European nation. Indexes are unmanaged. It is not possible to invest directly in an index.

^6.  Line graph and table do not reflect the deduction of taxes that a shareholder would pay.

^7.  Class C performance with the sales charges includes the 1.00% contingent deferred sales charge (CDSC) for returns of one year or less.

28

Barings U.S. High Yield Fund 2019 Annual Report

Investment Objective

Barings U.S. High Yield Fund (“U.S. High Yield Fund” or the “Fund”) seeks to achieve 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 rate of return for the reporting period from July 1, 2018 through June 30, 2019 of +6.09%, underperforming the Bloomberg Barclays U.S. Corporate High Yield Index (the Benchmark), which returned +7.48%.^{1, 5}

What factors influenced performance of the Fund?

∎ During the one-year period, the U.S. high yield bond market saw strong positive performance despite significant volatility in the fourth quarter of 2018. After ending the calendar year negative, the high yield market rebound was swift and broad, driven by continued economic stability, dovish sentiment from central banks and persistently low inflation.

∎ In general, demand for lower quality paper remained truncated while BB-rated credits outperformed single-B and CCC-rated high yield bonds. As a result, the Fund’s underweight allocation to BB-rated holdings, and overweight allocation to the lower-rated categories relative to the Benchmark, were performance detractors. Security selection across single-B and CCC-rated credits was a positive contributor to Fund performance versus the Benchmark, while security selection in BB-rated holdings lagged.

∎ From an industry perspective, the Fund’s holdings within the telecommunications sector were positive contributors to performance versus the Index. The mining, steel, iron and non-precious metals sector was the largest detractor from performance as a result of credit selection and an overweight allocation.

Describe recent portfolio activity.

∎ The Fund modestly reduced its overweight allocation to single-B and CCC-rated holdings over the course of the one-year period, through both selective sales and attrition of holdings that had been called or matured. The Fund increased its weighting in BB and BBB-rated holdings, which have outperformed in the first half of the year, given the risk-averse sentiment of high yield investors and attractive relative value characteristics.

∎ Across industries, the Fund’s allocation to the oil and gas industry was reduced during the period, as the industry still continues to display higher volatility in tandem with crude oil prices. The sector remains the largest industry sector in the Fund by market value. The Fund’s exposure to the telecommunications sector was increased, along with the broadcasting and entertainment sector, and the health care, education and child care sector.

Describe portfolio positioning at period end.

∎ On a traded basis, the Fund finished June 30, 2019 with a 15.6% weighting to senior secured high yield bonds, and a 73.1% weighting to senior unsecured bonds. The remaining balance of the portfolio was invested in senior secured loans (8.0%), and cash, accrued and other holdings (3.3%).

∎ From a sector perspective, the Fund remains well diversified across a number of Moody’s-based industries, with higher concentrations in oil and gas (11.8%), telecommunications (10.6%), and broadcasting and entertainment (9.4%), as of June 30, 2019.

^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 the net asset value (NAV) of shares of the Fund 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. All returns one-year or less are cumulative.

^5.  Benchmark: Bloomberg Barclays U.S. Corporate High Yield Index. The benchmark covers the universe of fixed-rate, non-investment grade debt focusing on corporate USD denominated and non-convertible debt. It is not possible to invest directly in an index.

29

Barings U.S. High Yield Fund 2019 Annual Report

∎ In terms of portfolio credit quality, the Fund had the following weighting breakdown: 6.3% in BBB, 41.0% in BB, 34.4% in single-B, 13.9% in CCC and below, and 2.8% in cash and accrued income. The Fund’s weighting in Not Publicly Rated holdings finished the period at 1.6%.²

Describe market and portfolio outlook.

∎ In our view, corporate fundamentals for high yield borrowers remain relatively healthy overall. As will always be the case, there continue to be individual companies or segments of the market that face headwinds.

∎ Overall, corporate defaults are not expected to increase materially in the near term, and we believe that the recent volatility and trading levels are compensating investors for a higher level of defaults than what corporate fundamentals suggest.

∎ Additionally, while commentary and action by central banks can influence investor sentiment and result in movements of retail fund flows or trading levels, we believe that the central banks appear to be willing to continue to take steps to support growth, which can be supportive for high yield borrowers and investors.

^2.  Ratings shown are the highest ratings 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, single-A and BBB are investment grade ratings categories used by S&P and Fitch. BB, single-B, CCC/CC/C and single-D are below investment grade ratings categories used by S&P and Fitch. Aaa, Aa, single-A and Baa are investment grade ratings categories used by Moody’s. Ba, single-B, Caa/Ca and single-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.

30

Barings U.S. High Yield Fund 2019 Annual Report

CREDIT QUALITY COMPOSITION (% OF ASSETS*)

* As of June 30, 2019.

COUNTRY COMPOSITION (% OF ASSETS**)

** The percentages of assets are expressed by market value excluding cash and accrued income, and may vary over time. As of June 30, 2019.

31

Barings U.S. High Yield Fund 2019 Annual Report

% AVERAGE ANNUAL TOTAL RETURNS 4,6,7	INCEPTION DATE		ONE YEAR			THREE YEARS			INCEPTION TO DATE
Class A With Load		10/30/2015		1.61	%		5.21	%		5.74	%
Class A No Load		10/30/2015		5.84	%		6.65	%		6.92	%
Class C With Load		10/30/2015		4.03	%		5.85	%		6.12	%
Class C No Load		10/30/2015		5.03	%		5.85	%		6.12	%
Class I With Load		10/30/2015		6.07	%		6.90	%		7.17	%
Class I No Load		10/30/2015		6.07	%		6.90	%		7.17	%
Class Y With Load		10/30/2015		6.09	%		6.91	%		7.17	%
Class Y No Load		10/30/2015		6.09	%		6.91	%		7.17	%

^3. Inception date: October 30, 2015.

^4.  Class A performance with the sales charges includes the maximum 4.00% sales charge.

^5.  Benchmark: Bloomberg Barclays U.S. Corporate High Yield Index. The benchmark covers the universe of fixed-rate, non-investment grade debt focusing on corporate USD denominated and non-convertible debt. It is not possible to invest directly in an index.

^6.  Line graph and table do not reflect the deduction of taxes that a shareholder would pay.

^7.  Class C performance with the sales charges includes the 1.00% contingent deferred sales charge (CDSC) for returns of one year or less.

32

Barings Funds Trust 2019 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 Diversified Income Fund (formerly Barings Total Return Bond Fund), Barings Emerging Markets Debt Blended Total Return Fund, Barings Global Emerging Markets Equity 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 January 1, 2019 to June 30, 2019.

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		1.00	%	$	1,000.00	$	1,047.80	$	1,023.90	$	5.08
Hypothetical		1.00	%		1,000.00		1,019.80		1,009.90		5.01
Class C
Actual		1.74	%		1,000.00		1,044.00		1,022.00		8.82
Hypothetical		1.74	%		1,000.00		1,016.20		1,008.10		8.70
Class I
Actual		0.75	%		1,000.00		1,049.10		1,024.55		3.81
Hypothetical		0.75	%		1,000.00		1,021.10		1,010.55		3.76
Class Y
Actual		0.75	%		1,000.00		1,049.10		1,024.55		3.81
Hypothetical		0.75	%		1,000.00		1,021.10		1,010.55		3.76

* For each Class of the Fund, net expenses are equal to the annualized expense ratio net of any expenses waived or reimbursed by the adviser for such class multiplied by the average account value over the period, multiplied by 181/365.

33

Barings Funds Trust 2019 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	$	1,057.70	$	1,028.85	$	6.12
Hypothetical		1.20	%		1,000.00		1,018.80		1,009.40		6.01
Class C
Actual		1.95	%		1,000.00		1,053.80		1,026.90		9.93
Hypothetical		1.95	%		1,000.00		1,015.10		1,007.55		9.74
Class I
Actual		0.95	%		1,000.00		1,059.00		1,029.50		4.85
Hypothetical		0.95	%		1,000.00		1,020.10		1,010.05		4.76
Class Y
Actual		0.95	%		1,000.00		1,059.00		1,029.50		4.85
Hypothetical		0.95	%		1,000.00		1,020.10		1,010.05		4.76

* For each Class of the Fund, net expenses are equal to the annualized expense ratio net of any expenses waived or reimbursed by the adviser for such class multiplied by the average account value over the period, multiplied by 181/365.

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	$	1,047.80	$	1,023.90	$	3.30
Hypothetical		0.65	%		1,000.00		1,021.60		1,010.80		3.26
Class C
Actual		0.90	%		1,000.00		1,044.00		1,022.00		4.56
Hypothetical		0.90	%		1,000.00		1,020.30		1,010.15		4.51
Class I
Actual		0.40	%		1,000.00		1,049.10		1,024.55		2.03
Hypothetical		0.40	%		1,000.00		1,022.80		1,011.40		2.01
Class Y
Actual		0.40	%		1,000.00		1,049.10		1,024.55		2.03
Hypothetical		0.40	%		1,000.00		1,022.80		1,011.40		2.01

* For each Class of the Fund, net expenses are equal to the annualized expense ratio net of any expenses waived or reimbursed by the adviser for such class multiplied by the average account value over the period, multiplied by 181/365.

34

Barings Funds Trust 2019 Annual Report

SHAREHOLDER EXPENSES (UNAUDITED) (CONTINUED)

Barings Diversified Income Fund (formerly Barings Total Return Bond Fund)

	EXPENSE RATIO**			BEGINNING AMOUNT		ENDING VALUE		AVERAGE VALUE		OPERATING EXPENSE INCURRED*
Class A
Actual		0.78	%	$	1,000.00	$	1,034.60	$	1,017.30	$	3.93
Hypothetical		0.78	%		1,000.00		1,020.90		1,010.45		3.91
Class C
Actual		1.52	%		1,000.00		1,030.80		1,015.40		7.65
Hypothetical		1.52	%		1,000.00		1,017.30		1,008.65		7.60
Class I
Actual		0.55	%		1,000.00		1,035.80		1,017.90		2.78
Hypothetical		0.55	%		1,000.00		1,022.10		1,011.05		2.76
Class Y
Actual		0.55	%		1,000.00		1,035.80		1,017.90		2.78
Hypothetical		0.55	%		1,000.00		1,022.10		1,011.05		2.76

* For each Class of the Fund, net expenses are equal to the annualized expense ratio net of any expenses waived or reimbursed by the adviser for such class multiplied by the average account value over the period, multiplied by 181/365.

** 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		0.85	%	$	1,000.00	$	1,109.30	$	1,054.65	$	4.45
Hypothetical		0.85	%		1,000.00		1,020.60		1,010.30		4.26
Class C
Actual		1.58	%		1,000.00		1,105.30		1,052.65		8.25
Hypothetical		1.58	%		1,000.00		1,017.00		1,008.50		7.90
Class I
Actual		0.61	%		1,000.00		1,110.60		1,055.30		3.19
Hypothetical		0.61	%		1,000.00		1,021.80		1,010.90		3.06
Class Y
Actual		0.60	%		1,000.00		1,110.60		1,055.30		3.14
Hypothetical		0.60	%		1,000.00		1,021.80		1,010.90		3.01

* For each Class of the Fund, net expenses are equal to the annualized expense ratio net of any expenses waived or reimbursed by the adviser for such class multiplied by the average account value over the period, multiplied by 181/365.

35

Barings Funds Trust 2019 Annual Report

SHAREHOLDER EXPENSES (UNAUDITED) (CONTINUED)

Barings Global Emerging Markets Equity Fund

	EXPENSE RATIO**			BEGINNING AMOUNT		ENDING VALUE		AVERAGE VALUE		OPERATING EXPENSE INCURRED*
Class A
Actual		1.45	%	$	1,000.00	$	1,152.40	$	1,076.20	$	7.74
Hypothetical		1.45	%		1,000.00		1,017.60		1,008.80		7.25
Class C
Actual		2.20	%		1,000.00		1,148.10		1,074.05		11.72
Hypothetical		2.20	%		1,000.00		1,013.90		1,006.95		10.99
Class I
Actual		1.20	%		1,000.00		1,153.80		1,076.90		6.41
Hypothetical		1.20	%		1,000.00		1,018.80		1,009.40		6.01
Class Y
Actual		1.20	%		1,000.00		1,153.80		1,076.90		6.41
Hypothetical		1.20	%		1,000.00		1,018.80		1,009.40		6.01

* For each Class of the Fund, net expenses are equal to the annualized expense ratio net of any expenses waived or reimbursed by the adviser for such class multiplied by the average account value over the period, multiplied by 181/365.

** 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 Global High Yield Fund

	EXPENSE RATIO			BEGINNING AMOUNT		ENDING VALUE		AVERAGE VALUE		OPERATING EXPENSE INCURRED*
Class A
Actual		1.05	%	$	1,000.00	$	1,088.50	$	1,044.25	$	5.44
Hypothetical		1.05	%		1,000.00		1,019.60		1,009.80		5.26
Class C
Actual		1.80	%		1,000.00		1,085.20		1,042.60		9.31
Hypothetical		1.80	%		1,000.00		1,015.90		1,007.95		9.00
Class I
Actual		0.80	%		1,000.00		1,090.20		1,045.10		4.15
Hypothetical		0.80	%		1,000.00		1,020.80		1,010.40		4.01
Class Y
Actual		0.80	%		1,000.00		1,090.20		1,045.10		4.15
Hypothetical		0.80	%		1,000.00		1,020.80		1,010.40		4.01

* For each Class of the Fund, net expenses are equal to the annualized expense ratio net of any expenses waived or reimbursed by the adviser for such class multiplied by the average account value over the period, multiplied by 181/365.

36

Barings Funds Trust 2019 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	$	1,085.60	$	1,042.80	$	5.17
Hypothetical		1.00	%		1,000.00		1,019.80		1,009.90		5.01
Class C
Actual		1.75	%		1,000.00		1,081.70		1,040.85		9.03
Hypothetical		1.75	%		1,000.00		1,016.10		1,008.05		8.75
Class I
Actual		0.75	%		1,000.00		1,087.00		1,043.50		3.88
Hypothetical		0.75	%		1,000.00		1,021.10		1,010.55		3.76
Class Y
Actual		0.75	%		1,000.00		1,087.10		1,043.55		3.88
Hypothetical		0.75	%		1,000.00		1,021.10		1,010.55		3.76

* For each Class of the Fund, net expenses are equal to the annualized expense ratio net of any expenses waived or reimbursed by the adviser for such class multiplied by the average account value over the period, multiplied by 181/365.

37

Barings Funds Trust 2019 Annual Report

FINANCIAL REPORT

Statements of Assets and Liabilities	39
Statements of Operations	43
Statements of Changes in Net Assets	47
Financial Highlights	51
Schedules of Investments	83-175
Notes to the Financial Statements	176-219
Report of Independent Registered Public Accounting Firm	220
Federal Tax Information	222
Interested Trustee	223
Independent Trustees	224-225
Officers of the Trust	226-227
Joint Privacy Notice	228

38

Barings Funds Trust 2019 Annual Report

STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2019

	BARINGS GLOBAL FLOATING RATE FUND		BARINGS GLOBAL CREDIT INCOME OPPORTUNITIES FUND		BARINGS ACTIVE SHORT DURATION BOND FUND		BARINGS DIVERSIFIED INCOME FUND (FORMERLY BARINGS TOTAL RETURN BOND FUND)
Assets
Investments, at fair value (cost $270,767,809, $209,414,498, $718,127,283 and $42,697,609, respectively)	$	259,120,620	$	198,644,529	$	726,655,084	$	43,163,759
Cash		23,412,904		15,491,071		–		443,417
Foreign currency, at value (cost $1,140,691, $3,391,489, $0 and $4,508, respectively)		1,140,328		3,406,864		–		4,526
Receivable for investments sold		1,320,562		1,873,135		714,729		424,278
Receivable for Fund shares sold		399,213		95,380		3,999,152		12,709
Interest receivable		1,716,708		2,258,609		4,151,048		315,970
Cash collateral held at broker on open options contracts		–		344,141		–		–
Receivable from adviser (see Note 3)		–		–		–		33,595
Receivable for variation margin on open centrally cleared swap contracts		–		–		1,146		–
Foreign tax reclaims receivable		–		183		4,386		–
Unrealized appreciation on forward foreign currency exchange contracts		81,048		94,580		–		4,206
Prepaid expenses		10,385		3,784		61,845		26,730
Total assets		287,201,768		222,212,276		735,587,390		44,429,190
Liabilities
Payable for investments purchased		573,288		–		11,234,008		414,119
Payable for TBA and when-issued securities purchased		11,617,735		8,462,516		–		1,299,990
Payable for Fund shares repurchased		580,678		480,405		974,377		8,270
Due to custodian		–		–		2,860,144		–
Swap contracts, at fair value (upfront net premiums received of $0, $0, $20,428 and $4,921, respectively)		–		–		52,074		13,018
Payable for variation margin on open futures contracts		–		–		43,936		3,012
Investment advisory fee payable (see Note 3)		133,778		252,786		106,748		–
Cash collateral Due to Broker		–		–		3,740,000		–
Distribution fees payable		16,049		17,416		27,618		212
Shareholder service fees payable		17,323		10,181		45,635		1,534
Dividends payable		234,824		214,593		332,059		74,667
Unrealized depreciation on forward foreign currency exchange contracts		102,331		52,933		–		24,128
Accrued expenses and other liabilities		289,209		230,727		437,514		91,413
Total liabilities		13,565,215		9,721,557		19,854,113		1,930,363
Total net assets	$	273,636,553	$	212,490,719	$	715,733,277	$	42,498,827

See accompanying Notes to the Financial Statements.

39

Barings Funds Trust 2019 Annual Report

STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)

June 30, 2019

	BARINGS GLOBAL FLOATING RATE FUND			BARINGS GLOBAL CREDIT INCOME OPPORTUNITIES FUND			BARINGS ACTIVE SHORT DURATION BOND FUND		BARINGS DIVERSIFIED INCOME FUND (FORMERLY 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	$	295		$	238		$	721	$	43
Additional paid-in capital		286,476,042			227,944,181			715,296,111		42,985,466
Total distributable earnings (accumulated loss)		(12,839,784	)		(15,453,700	)		436,445		(486,682	)
Total net assets (1)	$	273,636,553		$	212,490,719		$	715,733,277	$	42,498,827
Class A
Net assets applicable to outstanding shares	$	45,213,173		$	51,205,142		$	135,981,353	$	246,636
Shares of beneficial interest outstanding		4,884,613			5,734,302			13,684,621		25,117
Net asset value per share outstanding	$	9.26		$	8.93		$	9.94	$	9.82
Maximum offering price per share outstanding (Net asset value plus sales charge of 3.00%, 4.00%, 0.00% and 4.00%, respectively)	$	9.55		$	9.30		$	9.94	$	10.23
Class C
Net assets applicable to outstanding shares	$	8,005,318		$	8,462,099		$	1,178,163	$	196,955
Shares of beneficial interest outstanding		868,043			948,798			118,691		20,061
Net asset value per share outstanding	$	9.22		$	8.92		$	9.93	$	9.82
Class I
Net assets applicable to outstanding shares	$	32,531,155		$	23,202,780		$	301,309	$	12,129,886
Shares of beneficial interest outstanding		3,507,292			2,598,960			30,319		1,235,482
Net asset value per share outstanding	$	9.28		$	8.93		$	9.94	$	9.82
Class Y
Net assets applicable to outstanding shares	$	187,886,907		$	129,620,698		$	578,272,452	$	29,925,350
Shares of beneficial interest outstanding		20,266,113			14,520,972			58,234,564		3,047,815
Net asset value per share outstanding	$	9.27		$	8.93		$	9.93	$	9.82

(1) The SEC eliminated the requirement to disclose total distributable earnings by each of its components as previously disclosed as the previous presentation did not provide insight into the tax implications of distributions.

See accompanying Notes to the Financial Statements.

40

Barings Funds Trust 2019 Annual Report

STATEMENTS OF ASSETS AND LIABILITIES

June 30, 2019

	BARINGS EMERGING MARKETS DEBT BLENDED TOTAL RETURN FUND		BARINGS GLOBAL EMERGING MARKETS EQUITY FUND		BARINGS GLOBAL HIGH YIELD FUND		BARINGS U.S. HIGH YIELD FUND
Assets
Investments, at fair value (cost $47,825,492, $9,384,191, $27,788,536 and $50,143,523, respectively)	$	49,033,090	$	10,360,716	$	26,696,680	$	49,530,379
Cash		987,092		769,912		2,432,974		1,805,851
Foreign currency, at value (cost $499,264, $5,531, $17,928 and $0, respectively)		494,846		5,533		17,898		–
Receivable for investments sold		–		–		118,520		48,179
Receivable for Fund shares sold		–		–		7		5,481
Interest receivable		841,699		67,344		400,890		762,004
Receivable from adviser (see Note 3)		35,610		3,178		6,549		–
Cash collateral held at broker on open swap contracts		950,000		–		–		–
Receivable for variation margin on open centrally cleared swap contracts		4,187		–		–		–
Cash collateral held at broker on open future contracts		30,360		–		–		–
Receivable for variation margin on open futures contracts		249		–		–		–
Foreign tax reclaims receivable		–		648		650		297
Unrealized appreciation on forward foreign currency exchange contracts		592,913		–		883		–
Prepaid expenses		23,059		3,213		21,887		23,551
Total assets		52,993,105		11,210,544		29,696,938		52,175,742
Liabilities
Payable for investments purchased		–		–		920,421		–
Payable for TBA and when-issued securities purchased		1,435,254		–		1,179,937		1,159,247
Payable for Fund shares repurchased		–		–		1,877		15,321
Swap contracts, at fair value (upfront net premiums received of $11,325, $0, $0 and $0, respectively)		263,000		–		–		–
Investment advisory fee payable (see Note 3)		–		–		–		14,468
Directors’ fees payable		–		8,503		–		–
Distribution fees payable		292		109		329		778
Shareholder service fees payable		157		–		180		641
Dividends payable		227,982		–		121,146		125,278
Unrealized depreciation on forward foreign currency exchange contracts		510,556		–		77,016		–
Accrued expenses and other liabilities		121,831		77,089		82,377		90,945
Total liabilities		2,559,072		85,701		2,383,283		1,406,678
Total net assets	$	50,434,033	$	11,124,843	$	27,313,655	$	50,769,064

See accompanying Notes to the Financial Statements.

41

Barings Funds Trust 2019 Annual Report

STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)

June 30, 2019

	BARINGS EMERGING MARKETS DEBT BLENDED TOTAL RETURN FUND			BARINGS GLOBAL EMERGING MARKETS EQUITY FUND		BARINGS GLOBAL HIGH YIELD FUND			BARINGS U.S. HIGH YIELD FUND
Composition of net assets
Shares of beneficial interest outstanding (par value $0.00001 per share), unlimited number of shares authorized	$	50		$	10	$	29		$	52
Additional paid-in capital		51,825,161			9,999,742		28,537,937			51,926,098
Total distributable earnings (accumulated loss)		(1,391,178	)		1,125,091		(1,224,311	)		(1,157,086	)
Total net assets (1)	$	50,434,033		$	11,124,843	$	27,313,655		$	50,769,064
Class A
Net assets applicable to outstanding shares	$	404,806		$	111,042	$	2,302,408		$	3,840,335
Shares of beneficial interest outstanding		40,230			10,000		242,028			392,237
Net asset value per share outstanding	$	10.06		$	11.10	$	9.51		$	9.79
Maximum offering price per share outstanding (Net asset value plus sales charge of 4.00%)	$	10.48		$	11.56	$	9.91		$	10.20
Class C
Net assets applicable to outstanding shares	$	261,015		$	110,391	$	242,001		$	97,874
Shares of beneficial interest outstanding		25,936			10,000		25,409			10,000
Net asset value per share outstanding	$	10.06		$	11.04	$	9.52		$	9.79
Class I
Net assets applicable to outstanding shares	$	23,963,547		$	5,451,705	$	11,803,153		$	12,135,495
Shares of beneficial interest outstanding		2,381,296			490,000		1,240,000			1,240,000
Net asset value per share outstanding	$	10.06		$	11.13	$	9.52		$	9.79
Class Y
Net assets applicable to outstanding shares	$	25,804,665		$	5,451,705	$	12,966,093		$	34,695,360
Shares of beneficial interest outstanding		2,564,100			490,000		1,362,223			3,545,159
Net asset value per share outstanding	$	10.06		$	11.13	$	9.52		$	9.79

(1) The SEC eliminated the requirement to disclose total distributable earnings by each of its components as previously disclosed as the previous presentation did not provide insight into the tax implications of distributions.

See accompanying Notes to the Financial Statements.

42

Barings Funds Trust 2019 Annual Report

STATEMENTS OF OPERATIONS

For the Year Ended June 30, 2019

	BARINGS GLOBAL FLOATING RATE FUND			BARINGS GLOBAL CREDIT INCOME OPPORTUNITIES FUND			BARINGS ACTIVE SHORT DURATION BOND FUND			BARINGS DIVERSIFIED INCOME FUND (FORMERLY BARINGS TOTAL RETURN BOND FUND)
Investment Income
Interest income (net of withholding tax of $0, $2,640, $1,677 and $0, respectively)	$	16,622,284		$	14,461,104		$	18,217,367		$	1,171,344
Dividends		27,407			5,823			–			113,115
Other income		45,753			8,385			176			–
Total investment income		16,695,444			14,475,312			18,217,543			1,284,459
Operating Expenses
Advisory fees		1,891,720			1,629,494			1,853,894			129,161
12b-1 distribution and servicing plan
Class A		127,532			137,618			375,816			605
Class C		86,592			87,742			6,091			1,953
Shareholder service fee
Class A		34,551			14,551			99,504			30
Class C		4,864			5,129			796			–
Class Y		46,414			37,438			131,307			3,910
Administrator fees		213,311			162,773			323,700			48,759
Custody fees		197,553			156,019			323,453			46,537
Professional fees		111,994			102,394			111,821			67,680
Transfer agent fees		55,406			49,356			92,656			20,742
Directors’ fees		83,964			69,566			125,169			32,247
Registration fees		87,684			121,798			80,914			54,328
Printing and mailing expenses		36,823			36,921			55,106			13,521
Other operating expenses		58,521			45,867			91,372			11,113
Total operating expenses		3,036,929			2,656,666			3,671,599			430,586
Waiver/Reimbursement of expenses
Class A		(128,483	)		(89,384	)		(376,122	)		(6,715	)
Class C		(26,525	)		(22,950	)		(9,787	)		(6,281	)
Class I		(60,287	)		(28,410	)		(7,317	)		(89,056	)
Class Y		(425,661	)		(226,537	)		(778,908	)		(148,836	)
Net operating expenses		2,395,973			2,289,385			2,499,465			179,698
Net investment income		14,299,471			12,185,927			15,718,078			1,104,761

See accompanying Notes to the Financial Statements.

43

Barings Funds Trust 2019 Annual Report

STATEMENTS OF OPERATIONS (CONTINUED)

For the Year Ended June 30, 2019

	BARINGS GLOBAL FLOATING RATE FUND			BARINGS GLOBAL CREDIT INCOME OPPORTUNITIES FUND			BARINGS ACTIVE SHORT DURATION BOND FUND			BARINGS DIVERSIFIED INCOME FUND (FORMERLY BARINGS TOTAL RETURN BOND FUND)
Realized and Unrealized Gains (Losses) on Investments
Net realized loss on investments	$	(2,823,177	)	$	(5,383,341	)	$	(493,214	)	$	(105,354	)
Net realized gain (loss) on forward foreign currency exchange contracts		4,813,881			3,669,530			–			(10,209	)
Net realized gain on foreign currency and translation		754,531			843,756			–			15,840
Net realized gain (loss) on futures contracts		–			–			(4,665,303	)		(258,075	)
Net realized gain on swap contracts		–			–			135,318			13,397
Net realized gain (loss) on purchased options		–			(511,938	)		–			3,709
Net realized gain (loss)		2,745,235			(1,381,993	)		(5,023,199	)		(340,692	)
Net change in unrealized appreciation (depreciation) on investments		(8,744,618	)		(5,721,015	)		12,975,830			833,633
Net change in unrealized appreciation on unfunded loan commitments		9,990			14,782			–			–
Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts		(650,658	)		(774,111	)		–			3,054
Net change in unrealized appreciation (depreciation) on foreign currency and translation		(42,540	)		744			–			55
Change in net unrealized appreciation (depreciation) on affiliates		–			–			–			(21,907	)
Net change in unrealized appreciation (depreciation) on futures contracts		–			–			(3,081,643	)		(259,179	)
Net change in unrealized appreciation (depreciation) on swap contracts		–			–			(11,999	)		358
Net change in unrealized appreciation (depreciation) on purchased option contracts		–			(150,723	)		6,168			(3,797	)
Net change in unrealized appreciation (depreciation)		(9,427,826	)		(6,630,323	)		9,888,356			552,217
Net realized and unrealized gains (losses) on investments		(6,682,591	)		(8,012,316	)		4,865,157			211,525
Net increase in net assets resulting from operations	$	7,616,880		$	4,173,611		$	20,583,235		$	1,316,286

See accompanying Notes to the Financial Statements.

44

Barings Funds Trust 2019 Annual Report

STATEMENTS OF OPERATIONS

For the Year Ended June 30, 2019

	BARINGS EMERGING MARKETS DEBT BLENDED TOTAL RETURN FUND			BARINGS GLOBAL EMERGING MARKETS EQUITY FUND 1			BARINGS GLOBAL HIGH YIELD FUND			BARINGS U.S. HIGH YIELD FUND
Investment Income
Interest income (net of withholding tax of $11,047, $0, $3,547 and $0, respectively)	$	3,212,202		$	2,317		$	1,779,162		$	3,720,788
Dividends		–			174,041			–			–
Other income		70,000			–			4,630			6,696
Total investment income		3,282,202			176,358			1,783,792			3,727,484
Operating Expenses
Advisory fees		356,504			72,836			148,382			291,977
12b-1 distribution and servicing plan
Class A		1,205			202			571			5,147
Class C		2,665			806			1,997			973
Shareholder service fee
Class A		330			–			92			1,931
Class C		56			–			75			–
Class Y		255			–			385			1,036
Administrator fees		64,566			33,628			46,611			63,809
Custody fees		68,971			9,297			25,127			47,212
Professional fees		61,977			65,257			51,510			48,887
Transfer agent fees		28,147			14,000			22,099			20,089
Directors’ fees		35,487			22,500			31,067			36,731
Registration fees		52,934			4,554			52,976			53,033
Printing and mailing expenses		15,316			16,474			12,358			13,625
Other operating expenses		14,726			6,253			10,658			15,614
Total operating expenses		703,139			245,807			403,908			600,064
Waiver/Reimbursement of expenses
Class A		(10,434	)		(4,836	)		(7,075	)		(13,118	)
Class C		(8,821	)		(4,831	)		(7,031	)		(5,247	)
Class I		(163,253	)		(69,009	)		(92,171	)		(50,100	)
Class Y		(172,417	)		(69,009	)		(97,139	)		(127,329	)
Net operating expenses		348,214			98,122			200,492			404,270
Net investment income		2,933,988			78,236			1,583,300			3,323,214

See accompanying Notes to the Financial Statements.

45

Barings Funds Trust 2019 Annual Report

STATEMENTS OF OPERATIONS (CONTINUED)

For the Year Ended June 30, 2019

	BARINGS EMERGING MARKETS DEBT BLENDED TOTAL RETURN FUND			BARINGS GLOBAL EMERGING MARKETS EQUITY FUND 1			BARINGS GLOBAL HIGH YIELD FUND			BARINGS U.S. HIGH YIELD FUND
Realized and Unrealized Gains (Losses) on Investments
Net realized gain (loss) on investments	$	(2,070,916	) 2	$	76,264		$	(249,836	)	$	(467,591	)
Net realized gain (loss) on forward foreign currency exchange contracts		(626,857	)		–			484,537			–
Net realized gain (loss) on foreign currency and translation		(118,308	)		(6,295	)		52,604			–
Net realized gain (loss) on futures contracts		(90,314	)		–			–			–
Net realized gain on swap contracts		672,109			–			–			–
Net realized gain (loss) on purchased options		18,025			–			–			–
Net realized gain (loss)		(2,216,261	)		69,969			287,305			(467,591	)
Net change in unrealized appreciation (depreciation) on investments		5,159,506	3		976,525			(256,098	)		140,723
Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts		639,745			–			(122,031	)		–
Net change in unrealized appreciation on foreign currency and translation		14,159			113			1,604			–
Net change in unrealized appreciation (depreciation) on futures contracts		(29,220	)		–			–			–
Net change in unrealized appreciation (depreciation) on swap contracts		(639,038	)		–			–			–
Net change in unrealized appreciation (depreciation) on purchased option contracts		(37,731	)		–			–			–
Net change in unrealized appreciation (depreciation)		5,107,421			976,638			(376,525	)		140,723
Net realized and unrealized gains (losses) on investments		2,891,160			1,046,607			(89,220	)		(326,868	)
Net increase in net assets resulting from operations	$	5,825,148		$	1,124,843		$	1,494,080		$	2,996,346

(1) Fund commenced operations on September 17, 2018.

(2) Includes realized foreign capital gains taxes of $988.

(3) Net of change in unrealized appreciation (depreciation) of foreign capital gains taxes of $(599).

See accompanying Notes to the Financial Statements.

46

Barings Funds Trust 2019 Annual Report

STATEMENTS OF CHANGES IN NET ASSETS

	BARINGS GLOBAL FLOATING RATE FUND						BARINGS GLOBAL CREDIT INCOME OPPORTUNITIES FUND
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018
Operations
Net investment income	$	14,299,471		$	9,760,403		$	12,185,927		$	9,588,045
Net realized gain (loss) on investments		2,745,235			(1,856,944	)		(1,381,993	)		677,960
Net change in unrealized appreciation (depreciation) on investments		(9,427,826	)		362,889			(6,630,323	)		(4,509,081	)
Net increase in net assets resulting from operations		7,616,880			8,266,348			4,173,611			5,756,924
Dividends and distributions
Class A		(2,631,234	)		(2,063,485	)		(3,633,155	)		(1,756,888	)
Class C		(385,566	)		(270,057	)		(505,418	)		(327,000	)
Class I		(1,747,985	)		(854,559	)		(1,282,074	)		(1,145,985	)
Class Y		(10,875,941	)		(5,403,280	)		(8,847,995	)		(5,859,509	)
Total Dividends and distributions (1)(2)		(15,640,726	)		(8,591,381	)		(14,268,642	)		(9,089,382	)
Return of capital
Class A		–			(279,765	)		(63,546	)		(100,036	)
Class C		–			(35,709	)		(9,510	)		(17,976	)
Class I		–			(107,589	)		(25,629	)		(57,195	)
Class Y		–			(748,240	)		(165,268	)		(321,100	)
Total Return of capital		–			(1,171,303	)		(263,953	)		(496,307	)
Capital Share Transactions
Net proceeds from sale of shares		181,096,638			112,207,247			92,707,830			121,425,079
Net Asset Value of shares issued to shareholders in payment of distributions declared		12,277,586			8,983,366			10,875,940			6,045,876
Cost of shares redeemed		(164,501,029	)		(62,757,889	)		(112,233,144	)		(43,918,289	)
Net increase (decrease) in net assets resulting from capital stock transactions		28,873,195			58,432,724			(8,649,374	)		83,552,666
Total increase (decrease) in net assets		20,849,349			56,936,388			(19,008,358	)		79,723,901
Net Assets
Beginning of year		252,787,204			195,850,816			231,499,077			151,775,176
End of year	$	273,636,553		$	252,787,204		$	212,490,719		$	231,499,077

(1) The SEC eliminated the requirement to disclose distributions to shareholders from net investment income and from net realized gains in November 2018. Included in Barings Global Floating Rate Fund’s total distributions for net investment income and net realized gains, respectively, as of the year ended June 30, 2018 was $(2,063,485) and $0 for Class A, $(270,057) and $0 for Class C, $(854,559) and $0 for Class I and $(5,403,280) and $0 for Class Y. The undistributed net investment income (loss) was $(113,373) as of the year ended June 30, 2018.

(2) The SEC eliminated the requirement to disclose distributions to shareholders from net investment income and from net realized gains in November 2018. Included in Barings Global Credit Income Opportunities Fund’s total distributions for net investment income and net realized gains, respectively, as of the year ended June 30, 2018 was $(1,756,888) and $0 for Class A, $(327,000) and $0 for Class C, $(1,145,985) and $0 for Class I and $(5,859,509) and $0 for Class Y. The undistributed net investment income (loss) was $(305,680) as of the year ended June 30, 2018.

See accompanying Notes to the Financial Statements.

47

Barings Funds Trust 2019 Annual Report

STATEMENTS OF CHANGES IN NET ASSETS

	BARINGS ACTIVE SHORT DURATION BOND FUND						BARINGS DIVERSIFIED INCOME FUND (FORMERLY BARINGS TOTAL RETURN BOND FUND)
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018
Operations
Net investment income	$	15,718,078		$	9,285,132		$	1,104,761		$	903,641
Net realized gain (loss) on investments		(5,023,199	)		1,300,980			(340,692	)		(118,675	)
Net change in unrealized appreciation (depreciation) on investments		9,888,356			(5,924,031	)		552,217			(750,496	)
Net increase in net assets resulting from operations		20,583,235			4,662,081			1,316,286			34,470
Dividends and distributions
Class A		(4,327,284	)		(3,875,523	)		(7,516	)		(6,279	)
Class C		(31,974	)		(19,495	)		(4,785	)		(4,440	)
Class I		(9,407	)		(7,420	)		(413,758	)		(392,338	)
Class Y		(11,907,536	)		(6,664,499	)		(678,343	)		(573,463	)
Total Dividends and distributions (1)(2)		(16,276,201	)		(10,566,937	)		(1,104,402	)		(976,520	)
Return of capital
Class A		–			–			–			(217	)
Class C		–			–			–			(153	)
Class I		–			–			–			(13,609	)
Class Y		–			–			–			(19,524	)
Total Return of capital		–			–			–			(33,503	)
Capital Share Transactions
Net proceeds from sale of shares		531,527,546			354,038,993			16,053,424			2,983,984
Net Asset Value of shares issued to shareholders in payment of distributions declared		13,533,610			9,474,859			262,817			183,911
Cost of shares redeemed		(264,419,113	)		(250,813,003	)		(2,915,535	)		(3,661,938	)
Net increase (decrease) in net assets resulting from capital stock transactions		280,642,043			112,700,849			13,400,706			(494,043	)
Total increase (decrease) in net assets		284,949,077			106,795,993			13,612,590			(1,469,596	)
Net Assets
Beginning of year		430,784,200			323,988,207			28,886,237			30,355,833
End of year	$	715,733,277		$	430,784,200		$	42,498,827		$	28,886,237

(1) The SEC eliminated the requirement to disclose distributions to shareholders from net investment income and from net realized gains in November 2018. Included in Barings Active Short Duration Fund’s total distributions for net investment income and net realized gains, respectively, as of the year ended June 30, 2018 was $(3,385,234) and $(490,289) for Class A, $(17,041) and $(2,454) for Class C, $(6,510) and $(910) for Class I and $(5,887,689) and $(776,810) for Class Y. The undistributed net investment income (loss) was $(10,364) as of the year ended June 30, 2018.

(2) The SEC eliminated the requirement to disclose distributions to shareholders from net investment income and from net realized gains in November 2018. Included in Barings Diversified Income Fund’s total distributions for net investment income and net realized gains, respectively, as of the year ended June 30, 2018 was $(6,279) and $0 for Class A, $(4,440) and $0 for Class C, $(392,338) and $0 for Class I and $(573,463) and $0 for Class Y. The undistributed net investment income (loss) was $(60,031) as of the year ended June 30, 2018.

See accompanying Notes to the Financial Statements.

48

Barings Funds Trust 2019 Annual Report

STATEMENTS OF CHANGES IN NET ASSETS

	BARINGS EMERGING MARKETS DEBT BLENDED TOTAL RETURN FUND						BARINGS GLOBAL EMERGING MARKETS EQUITY FUND
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			PERIOD FROM SEPTEMBER 17, 2018 TO JUNE 30, 2019 (1)
Operations
Net investment income	$	2,933,988		$	1,225,718		$	78,236
Net realized gain (loss) on investments		(2,216,261	)		232,231			69,969
Net change in unrealized appreciation (depreciation) on investments		5,107,421			(4,915,528	)		976,638
Net increase (decrease) in net assets from operations		5,825,148			(3,457,579	)		1,124,843
Dividends and distributions
Class A		(27,569	)		(46,971	)		–
Class C		(13,395	)		(17,558	)		–
Class I		(1,355,443	)		(700,991	)		–
Class Y		(1,420,530	)		(722,445	)		–
Total Dividends and distributions (2)		(2,816,937	)		(1,487,965	)		–
Class A		(2,043	)		–			–
Class C		(1,174	)		–			–
Class I		(126,191	)		–			–
Class Y		(133,784	)		–			–
Total Return of capital		(263,192	)		–			–
Capital Share Transactions
Net proceeds from sale of shares		1,762,308			41,179,347			10,000,000
Net Asset Value of shares issued to shareholders in payment of distributions declared		64,652			43,749			–
Cost of shares redeemed		(752,758	)		(498,234	)		–
Net increase in net assets resulting from capital stock transactions		1,074,202			40,724,862			10,000,000
Total increase in net assets		3,819,221			35,779,318			11,124,843
Net Assets
Beginning of year		46,614,812			10,835,494			–
End of year	$	50,434,033		$	46,614,812		$	11,124,843

(1) Fund commenced operations on September 17, 2018.

(2) The SEC eliminated the requirement to disclose distributions to shareholders from net investment income and from net realized gains in November 2018. Included in Barings Emerging Markets Debt Blended Total Return Fund’s total distributions for net investment income and net realized gains, respectively, as of the year ended June 30, 2018 was $(29,114) and $(17,857) for Class A, $(10,947) and $(6,611) for Class C, $(556,464) and $(144,527) for Class I and $(570,211) and $(152,234) for Class Y. The undistributed net investment income was $123,614 as of the year ended June 30, 2018.

See accompanying Notes to the Financial Statements.

49

Barings Funds Trust 2019 Annual Report

STATEMENTS OF CHANGES IN NET ASSETS

	BARINGS GLOBAL HIGH YIELD FUND						BARINGS U.S. HIGH YIELD FUND
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018
Operations
Net investment income	$	1,583,300		$	1,649,437		$	3,323,214		$	2,245,957
Net realized gain (loss) on investments		287,305			402,802			(467,591	)		150,989
Net change in unrealized appreciation (depreciation) on investments		(376,525	)		(1,472,755	)		140,723			(1,765,072	)
Net increase in net assets resulting from operations		1,494,080			579,484			2,996,346			631,874
Dividends and distributions
Class A		(17,780	)		(9,066	)		(123,204	)		(210,019	)
Class C		(15,389	)		(17,640	)		(5,130	)		(9,206	)
Class I		(1,021,950	)		(1,081,306	)		(869,451	)		(1,394,522	)
Class Y		(1,064,337	)		(1,191,673	)		(2,324,075	)		(1,602,934	)
Total Dividends and distributions (1)(2)		(2,119,456	)		(2,299,685	)		(3,321,860	)		(3,216,681	)
Capital Share Transactions
Net proceeds from sale of shares		6,816,400			3,560,120			8,045,852			29,139,508
Net Asset Value of shares issued to shareholders in payment of distributions declared		47,989			116,325			1,787,969			882,238
Cost of shares redeemed		(3,751,131	)		(4,970,047	)		(15,746,520	)		(3,532,281	)
Net increase (decrease) in net assets resulting from capital stock transactions		3,113,258			(1,293,602	)		(5,912,699	)		26,489,465
Total increase (decrease) in net assets		2,487,882			(3,013,803	)		(6,238,213	)		23,904,658
Net Assets
Beginning of year		24,825,773			27,839,576			57,007,277			33,102,619
End of year	$	27,313,655		$	24,825,773		$	50,769,064		$	57,007,277

(1) The SEC eliminated the requirement to disclose distributions to shareholders from net investment income and from net realized gains in November 2018. Included in Barings Global High Yield Fund’s total distributions for net investment income and net realized gains, respectively, as of the year ended June 30, 2018 was $(6,439) and $(2,627) for Class A, $(11,793) and $(5,847) for Class C, $(775,770) and $(305,536) for Class I and $(855,423) and $(336,250) for Class Y. The undistributed net investment income (loss) was $(440) as of the year ended June 30, 2018.

(2) The SEC eliminated the requirement to disclose distributions to shareholders from net investment income and from net realized gains in November 2018. Included in Barings U.S. High Yield Fund’s total distributions for net investment income and net realized gains, respectively, as of the year ended June 30, 2018 was $(139,147) and $(70,872) for Class A, $(5,823) and $(3,383) for Class C, $(944,699) and $(449,823) for Class I and $(1,156,409) and $(446,525) for Class Y. The undistributed net investment income (loss) was $(536) as of the year ended June 30, 2018.

See accompanying Notes to the Financial Statements.

50

Barings Global Floating Rate Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015
Per Common Share Data
Net asset value, beginning of year	$	9.48		$	9.54		$	9.13		$	9.60		$	10.20
Income from investment operations:
Net investment income (1)		0.44			0.43			0.43			0.44			0.44
Net realized and unrealized gain (loss) on investments		(0.18	)		(0.06	)		0.42			(0.45	)		(0.35	)
Total increase (decrease) from investment operations		0.26			0.37			0.85			(0.01	)		0.09
Less dividends and distributions:
From net investment income		(0.44	)		(0.38	)		(0.31	)		(0.46	)		(0.68	)
From net realized gain		(0.04	)		–			–			–			(0.01	)
From return of capital		–			(0.05	)		(0.13	)		–			–
Total dividends and distributions		(0.48	)		(0.43	)		(0.44	)		(0.46	)		(0.69	)
Redemption fees		–			–			–			–			0.00	(2)
Net asset value, at end of year	$	9.26		$	9.48		$	9.54		$	9.13		$	9.60
Total investment return (3)		2.77	%		4.00	%		9.47	%		(0.04	)%		0.95	%
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	45,213		$	53,371		$	45,363		$	13,980		$	5,153
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.25	%		1.26	%		1.37	%		1.72	%		1.74	%
Ratio of net expenses to average net assets (4)		1.00	%		0.96	%(5)		0.99	%(6)		1.05	%(7)		1.05	%(7)
Ratio of net investment income to average net assets		4.72	%		4.55	%		4.52	%		4.74	%		4.44	%
Portfolio turnover rate		46.51	%		57.74	%		47.06	%		62.99	%		63.17	%

(1) Calculated using average shares outstanding.

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

(3) 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.

(4) 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.

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

(6) 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.

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

See accompanying Notes to the Financial Statements.

51

Barings Global Floating Rate Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015
Per Common Share Data
Net asset value, beginning of year	$	9.45		$	9.51		$	9.10		$	9.57		$	10.16
Income from investment operations:
Net investment income (1)		0.37			0.36			0.37			0.37			0.35
Net realized and unrealized gain (loss) on investments		(0.19	)		(0.06	)		0.41			(0.45	)		(0.33	)
Total increase (decrease) from investment operations		0.18			0.30			0.78			(0.08	)		0.02
Less dividends and distributions:
From net investment income		(0.37	)		(0.32	)		(0.26	)		(0.39	)		(0.60	)
From net realized gain		(0.04	)		–			–			–			(0.01	)
From return of capital		–			(0.04	)		(0.11	)		–			–
Total dividends and distributions		(0.41	)		(0.36	)		(0.37	)		(0.39	)		(0.61	)
Redemption fees		–			–			–			–			0.00	(2)
Net asset value, at end of year	$	9.22		$	9.45		$	9.51		$	9.10		$	9.57
Total investment return (3)		2.02	%		3.24	%		8.68	%		(0.81	)%		0.30	%
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	8,005		$	8,311		$	8,018		$	6,803		$	5,461
Ratio of total expenses (before reductions and reimbursements) to average net assets		2.05	%		2.09	%		2.24	%		2.50	%		3.12	%
Ratio of net expenses to average net assets (4)		1.74	%(5)		1.70	%(5)		1.71	%(6)		1.80	%(7)		1.80	%(7)
Ratio of net investment income to average net assets		4.00	%		3.80	%		3.91	%		4.04	%		3.60	%
Portfolio turnover rate		46.51	%		57.74	%		47.06	%		62.99	%		63.17	%

(1) Calculated using average shares outstanding.

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

(3) 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.

(4) 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.

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

(6) 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.

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

See accompanying Notes to the Financial Statements.

52

Barings Global Floating Rate Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015
Per Common Share Data
Net asset value, beginning of year	$	9.50		$	9.56		$	9.15		$	9.62		$	10.21
Income from investment operations:
Net investment income (1)		0.47			0.46			0.47			0.47			0.46
Net realized and unrealized gain (loss) on investments		(0.18	)		(0.06	)		0.40			(0.45	)		(0.34	)
Total increase from investment operations		0.29			0.40			0.87			0.02			0.12
Less dividends and distributions:
From net investment income		(0.47	)		(0.41	)		(0.32	)		(0.49	)		(0.70	)
From net realized gain		(0.04	)		–			–			–			(0.01	)
From return of capital		–			(0.05	)		(0.14	)		–			–
Total dividends and distributions		(0.51	)		(0.46	)		(0.46	)		(0.49	)		(0.71	)
Redemption fees		–			–			–			–			0.00	(2)
Net asset value, at end of year	$	9.28		$	9.50		$	9.56		$	9.15		$	9.62
Total investment return (3)		3.04	%		4.28	%		9.74	%		0.25	%		1.34	%
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	32,531		$	18,370		$	19,733		$	19,903		$	25,885
Ratio of total expenses (before reductions and reimbursements) to average net assets		0.94	%		1.03	%		1.16	%		1.29	%		1.31	%
Ratio of net expenses to average net assets (4)		0.75	%		0.71	%(5)		0.75	%		0.75	%		0.75	%
Ratio of net investment income to average net assets		5.01	%		4.78	%		4.90	%		5.07	%		4.69	%
Portfolio turnover rate		46.51	%		57.74	%		47.06	%		62.99	%		63.17	%

(1) Calculated using average shares outstanding.

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

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

(4) 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 0.75% as a percentage of average daily net assets.

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

See accompanying Notes to the Financial Statements.

53

Barings Global Floating Rate Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015
Per Common Share Data
Net asset value, beginning of year	$	9.50		$	9.56		$	9.15		$	9.62		$	10.21
Income from investment operations:
Net investment income (1)		0.47			0.46			0.47			0.47			0.45
Net realized and unrealized gain (loss) on investments		(0.19	)		(0.06	)		0.40			(0.45	)		(0.33	)
Total increase from investment operations		0.28			0.40			0.87			0.02			0.12
Less dividends and distributions:
From net investment income		(0.47	)		(0.41	)		(0.32	)		(0.49	)		(0.70	)
From net realized gain		(0.04	)		–			–			–			(0.01	)
From return of capital		–			(0.05	)		(0.14	)		–			–
Total dividends and distributions		(0.51	)		(0.46	)		(0.46	)		(0.49	)		(0.71	)
Redemption fees		–			–			–			–			0.00	(2)
Net asset value, at end of year	$	9.27		$	9.50		$	9.56		$	9.15		$	9.62
Total investment return (3)		3.03	%		4.27	%		9.73	%		0.22	%		1.28	%
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	187,887		$	172,736		$	122,736		$	125,957		$	129,659
Ratio of total expenses (before reductions and reimbursements) to average net assets		0.96	%		1.01	%		1.14	%		1.27	%		1.25	%
Ratio of net expenses to average net assets (4)		0.75	%		0.71	%(5)		0.75	%		0.75	%		0.75	%
Ratio of net investment income to average net assets		4.99	%		4.79	%		4.90	%		5.08	%		4.58	%
Portfolio turnover rate		46.51	%		57.74	%		47.06	%		62.99	%		63.17	%

(1) Calculated using average shares outstanding.

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

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

(4) 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 0.75% as a percentage of average daily net assets.

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

See accompanying Notes to the Financial Statements.

54

Barings Global Credit Income Opportunities Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015
Per Common Share Data
Net asset value, beginning of year	$	9.32		$	9.51		$	8.80		$	9.51		$	10.45
Income from investment operations:
Net investment income (1)		0.50			0.49			0.55			0.56			0.54
Net realized and unrealized gain (loss) on investments		(0.30	)		(0.19	)		0.71			(0.66	)		(0.57	)
Total increase (decrease) from investment operations		0.20			0.30			1.26			(0.10	)		(0.03	)
Less dividends and distributions:
From net investment income		(0.48	)		(0.47	)		(0.50	)		(0.61	)		(0.78	)
From net realized gain		(0.10	)		–			–			–			(0.13	)
From return of capital		(0.01	)		(0.02	)		(0.05	)		–			–
Total dividends and distributions		(0.59	)		(0.49	)		(0.55	)		(0.61	)		(0.91	)
Redemption fees		–			–			–			–			0.00	(2)
Net asset value, at end of year	$	8.93		$	9.32		$	9.51		$	8.80		$	9.51
Total investment return (3)		2.39	%		3.24	%		14.61	%		(0.84	)%		(0.11	)%
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	51,205		$	60,507		$	26,904		$	12,340		$	12,718
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.36	%		1.38	%		1.56	%		1.90	%		1.98	%
Ratio of net expenses to average net assets (4)		1.20	%		1.20	%		1.20	%		1.20	%		1.20	%
Ratio of net investment income to average net assets		5.46	%		5.17	%		5.83	%		6.28	%		5.46	%
Portfolio turnover rate		58.78	%		52.29	%		48.69	%		58.08	%		84.65	%

(1) Calculated using average shares outstanding.

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

(3) 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.

(4) 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.

55

Barings Global Credit Income Opportunities Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015
Per Common Share Data
Net asset value, beginning of year	$	9.31		$	9.50		$	8.79		$	9.50		$	10.45
Income from investment operations:
Net investment income (1)		0.43			0.42			0.48			0.49			0.47
Net realized and unrealized gain (loss) on investments		(0.29	)		(0.19	)		0.71			(0.65	)		(0.58	)
Total increase (decrease) from investment operations		0.14			0.23			1.19			(0.16	)		(0.11	)
Less dividends and distributions:
From net investment income		(0.42	)		(0.40	)		(0.43	)		(0.55	)		(0.71	)
From net realized gain		(0.10	)		–			–			–			(0.13	)
From return of capital		(0.01	)		(0.02	)		(0.05	)		–			–
Total dividends and distributions		(0.53	)		(0.42	)		(0.48	)		(0.55	)		(0.84	)
Redemption fees		–			–			–			–			0.00	(2)
Net asset value, at end of year	$	8.92		$	9.31		$	9.50		$	8.79		$	9.50
Total investment return (3)		1.63	%		2.47	%		13.75	%		(1.59	)%		(0.93	)%
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	8,462		$	8,842		$	6,628		$	3,578		$	3,579
Ratio of total expenses (before reductions and reimbursements) to average net assets		2.21	%		2.21	%		2.39	%		2.91	%		4.09	%
Ratio of net expenses to average net assets (4)		1.95	%		1.95	%		1.95	%		1.95	%		1.95	%
Ratio of net investment income to average net assets		4.73	%		4.44	%		5.12	%		5.50	%		4.79	%
Portfolio turnover rate		58.78	%		52.29	%		48.69	%		58.08	%		84.65	%

(1) Calculated using average shares outstanding.

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

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

(4) 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.

56

Barings Global Credit Income Opportunities Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015
Per Common Share Data
Net asset value, beginning of year	$	9.32		$	9.50		$	8.80		$	9.51		$	10.46
Income from investment operations:
Net investment income (1)		0.52			0.51			0.58			0.58			0.56
Net realized and unrealized gain (loss) on investments		(0.29	)		(0.18	)		0.70			(0.65	)		(0.58	)
Total increase (decrease) from investment operations		0.23			0.33			1.28			(0.07	)		(0.02	)
Less dividends and distributions:
From net investment income		(0.51	)		(0.49	)		(0.52	)		(0.64	)		(0.80	)
From net realized gain		(0.10	)		–			–			–			(0.13	)
From return of capital		(0.01	)		(0.02	)		(0.06	)		–			–
Total dividends and distributions		(0.62	)		(0.51	)		(0.58	)		(0.64	)		(0.93	)
Redemption fees		–			–			–			–			0.00	(2)
Net asset value, at end of year	$	8.93		$	9.32		$	9.50		$	8.80		$	9.51
Total investment return (3)		2.65	%		3.49	%		14.90	%		(0.61	)%		0.05	%
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	23,203		$	21,788		$	22,228		$	24,689		$	26,428
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.09	%		1.13	%		1.27	%		1.54	%		1.58	%
Ratio of net expenses to average net assets (4)		0.95	%		0.95	%		0.95	%		0.95	%		0.95	%
Ratio of net investment income to average net assets		5.69	%		5.45	%		6.22	%		6.54	%		5.69	%
Portfolio turnover rate		58.78	%		52.29	%		48.69	%		58.08	%		84.65	%

(1) Calculated using average shares outstanding.

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

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

(4) 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.

See accompanying Notes to the Financial Statements.

57

Barings Global Credit Income Opportunities Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			FOR THE YEAR ENDED JUNE 30, 2016			FOR THE YEAR ENDED JUNE 30, 2015
Per Common Share Data
Net asset value, beginning of year	$	9.31		$	9.50		$	8.80		$	9.51		$	10.46
Income from investment operations:
Net investment income (1)		0.52			0.51			0.57			0.59			0.56
Net realized and unrealized gain (loss) on investments		(0.28	)		(0.19	)		0.71			(0.66	)		(0.58	)
Total increase (decrease) from investment operations		0.24			0.32			1.28			(0.07	)		(0.02	)
Less dividends and distributions:
From net investment income		(0.51	)		(0.49	)		(0.52	)		(0.64	)		(0.80	)
From net realized gain		(0.10	)		–			–			–			(0.13	)
From return of capital		(0.01	)		(0.02	)		(0.06	)		–			–
Total dividends and distributions		(0.62	)		(0.51	)		(0.58	)		(0.64	)		(0.93	)
Redemption fees		–			–			–			–			0.00	(2)
Net asset value, at end of year	$	8.93		$	9.31		$	9.50		$	8.80		$	9.51
Total investment return (3)		2.64	%		3.48	%		14.90	%		(0.61	)%		0.05	%
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	129,621		$	140,362		$	96,014		$	58,312		$	39,006
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.12	%		1.14	%		1.28	%		1.55	%		1.58	%
Ratio of net expenses to average net assets (4)		0.95	%		0.95	%		0.95	%		0.95	%		0.95	%
Ratio of net investment income to average net assets		5.71	%		5.43	%		6.14	%		6.56	%		5.67	%
Portfolio turnover rate		58.78	%		52.29	%		48.69	%		58.08	%		84.65	%

(1) Calculated using average shares outstanding.

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

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

(4) 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.

See accompanying Notes to the Financial Statements.

58

Barings Active Short Duration Bond Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.88		$	10.01		$	9.98		$	10.00
Income from investment operations:
Net investment income (2)		0.27			0.21			0.17			0.15
Net realized and unrealized gain (loss) on investments		0.08			(0.10	)		0.03			(0.03	)(3)
Total increase from investment operations		0.35			0.11			0.20			0.12
Less dividends and distributions:
From net investment income		(0.27	)		(0.21	)		(0.17	)		(0.14	)
From net realized gain		(0.02	)		(0.03	)		(0.00	)(4)		–
Total dividends and distributions		(0.29	)		(0.24	)		(0.17	)		(0.14	)
Net asset value, at end of year	$	9.94		$	9.88		$	10.01		$	9.98
Total investment return (5)		3.52	%		1.10	%		2.12	%		1.17	%(6)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	135,981		$	177,020		$	119,189		$	39,992
Ratio of total expenses (before reductions and reimbursements) to average net assets		0.90	%		0.94	%		1.06	%		1.18	%(7)
Ratio of net expenses to average net assets (8)		0.65	%		0.65	%		0.65	%		0.65	%(7)
Ratio of net investment income to average net assets		2.75	%		2.15	%		1.72	%		1.51	%(7)
Portfolio turnover rate		43.15	%		53.33	%		88.52	%		218.67	%(6)

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

(2) Calculated using average shares outstanding.

(3) 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.

(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 0.65% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

59

Barings Active Short Duration Bond Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.87		$	10.01		$	9.97		$	10.00
Income from investment operations:
Net investment income (2)		0.25			0.19			0.19			0.07
Net realized and unrealized gain (loss) on investments		0.08			(0.11	)		0.05			(0.03	)(3)
Total increase from investment operations		0.33			0.08			0.24			0.04
Less dividends and distributions:
From net investment income		(0.25	)		(0.19	)		(0.20	)		(0.07	)
From net realized gain		(0.02	)		(0.03	)		(0.00	)(4)		–
Total dividends and distributions		(0.27	)		(0.22	)		(0.20	)		(0.07	)
Net asset value, at end of year	$	9.93		$	9.87		$	10.01		$	9.97
Total investment return (5)		3.23	%		0.84	%		2.41	%		0.39	%(6)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	1,178		$	1,139		$	236		$	257
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.70	%		1.95	%		3.09	%(7)		5.44	%(8)(9)
Ratio of net expenses to average net assets (10)		0.90	%		0.90	%		0.40	%(7)		1.40	%(8)(9)
Ratio of net investment income to average net assets		2.51	%		1.92	%		1.94	%(7)		0.71	%(8)(9)
Portfolio turnover rate		43.15	%		53.33	%		88.52	%		218.67	%(6)

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

(2) Calculated using average shares outstanding.

(3) 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.

(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) 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.

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

(9) 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.

(10) 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.

60

Barings Active Short Duration Bond Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.88		$	10.01		$	9.97		$	10.00
Income from investment operations:
Net investment income (2)		0.30			0.24			0.18			0.16
Net realized and unrealized gain (loss) on investments		0.08			(0.10	)		0.06			(0.03	)(3)
Total increase from investment operations		0.38			0.14			0.24			0.13
Less dividends and distributions:
From net investment income		(0.30	)		(0.24	)		(0.20	)		(0.16	)
From net realized gain		(0.02	)		(0.03	)		(0.00	)(4)		–
Total dividends and distributions		(0.32	)		(0.27	)		(0.20	)		(0.16	)
Net asset value, at end of year	$	9.94		$	9.88		$	10.01		$	9.97
Total investment return (5)		3.78	%		1.39	%		2.44	%		1.35	%(6)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	301		$	300		$	100		$	5,971
Ratio of total expenses (before reductions and reimbursements) to average net assets		2.84	%		3.07	%		1.67	%		0.96	%(7)
Ratio of net expenses to average net assets (8)		0.40	%		0.40	%		0.40	%		0.44	%(7)
Ratio of net investment income to average net assets		3.01	%		2.39	%		1.84	%		1.67	%(7)
Portfolio turnover rate		43.15	%		53.33	%		88.52	%		218.67	%(6)

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

(2) Calculated using average shares outstanding.

(3) 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.

(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 0.40% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

61

Barings Active Short Duration Bond Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.87		$	10.01		$	9.97		$	10.00
Income from investment operations:
Net investment income (2)		0.30			0.24			0.20			0.17
Net realized and unrealized gain (loss) on investments		0.07			(0.11	)		0.04			(0.04	)(3)
Total increase from investment operations		0.37			0.13			0.24			0.13
Less dividends and distributions:
From net investment income		(0.29	)		(0.24	)		(0.20	)		(0.16	)
From net realized gain		(0.02	)		(0.03	)		(0.00	)(4)		–
Total dividends and distributions		(0.31	)		(0.27	)		(0.20	)		(0.16	)
Net asset value, at end of year	$	9.93		$	9.87		$	10.01		$	9.97
Total investment return (5)		3.78	%		1.35	%		2.38	%		1.36	%(6)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	578,272		$	252,325		$	204,464		$	109,645
Ratio of total expenses (before reductions and reimbursements) to average net assets		0.61	%		0.70	%		0.82	%		0.87	%(7)
Ratio of net expenses to average net assets (8)		0.40	%		0.40	%		0.40	%		0.41	%(7)
Ratio of net investment income to average net assets		3.06	%		2.39	%		1.97	%		1.73	%(7)
Portfolio turnover rate		43.15	%		53.33	%		88.52	%		218.67	%(6)

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

(2) Calculated using average shares outstanding.

(3) 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.

(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 0.40% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

62

Barings Diversified Income Fund (formerly Barings Total Return Bond Fund) 2019 Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.77		$	10.08		$	10.18		$	10.00
Income from investment operations:
Net investment income (2)		0.30			0.27			0.25			0.25
Net realized and unrealized gain (loss) on investments		0.06			(0.28	)		(0.09	)		0.20
Total increase (decrease) from investment operations		0.36			(0.01	)		0.16			0.45
Less dividends and distributions:
From net investment income		(0.31	)		(0.29	)		(0.26	)		(0.25	)
From net realized gain		–			–			–			(0.02	)
From return of capital		–			(0.01	)		–			–
Total dividends and distributions		(0.31	)		(0.30	)		(0.26	)		(0.27	)
Net asset value, at end of year	$	9.82		$	9.77		$	10.08		$	10.18
Total investment return (3)		3.77	%		(0.12	)%		1.65	%		4.63	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	247		$	207		$	218		$	211
Ratio of total expenses (before reductions and reimbursements) to average net assets		3.57	%		3.72	%		3.52	%		5.60	%(5)
Ratio of net expenses to average net assets (6)(7)		0.79	%(8)		0.80	%		0.80	%		0.80	%(5)
Ratio of net investment income to average net assets		3.11	%		2.70	%		2.49	%		2.52	%(5)
Portfolio turnover rate		192.64	%		172.39	%		242.55	%		434.37	%(4)

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

(2) Calculated using average shares outstanding.

(3) 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.

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 0.80% as a percentage of average daily net assets.

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

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

See accompanying Notes to the Financial Statements.

63

Barings Diversified Income Fund (formerly Barings Total Return Bond Fund) 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.77		$	10.08		$	10.18		$	10.00
Income from investment operations:
Net investment income (2)		0.24			0.19			0.17			0.17
Net realized and unrealized gain (loss) on investments		0.05			(0.27	)		(0.08	)		0.21
Total increase (decrease) from investment operations		0.29			(0.08	)		0.09			0.38
Less dividends and distributions:
From net investment income		(0.24	)		(0.22	)		(0.19	)		(0.18	)
From net realized gain		–			–			–			(0.02	)
From return of capital		–			(0.01	)		–			–
Total dividends and distributions		(0.24	)		(0.23	)		(0.19	)		(0.20	)
Net asset value, at end of year	$	9.82		$	9.77		$	10.08		$	10.18
Total investment return (3)		2.99	%		(0.87	)%		0.89	%		3.87	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	197		$	196		$	202		$	204
Ratio of total expenses (before reductions and reimbursements) to average net assets		4.75	%		4.60	%		4.41	%		6.38	%(5)
Ratio of net expenses to average net assets (6)(7)		1.54	%(8)		1.55	%		1.55	%		1.55	%(5)
Ratio of net investment income to average net assets		2.45	%		1.95	%		1.74	%		1.77	%(5)
Portfolio turnover rate		192.64	%		172.39	%		242.55	%		434.37	%(4)

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

(2) Calculated using average shares outstanding.

(3) 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.

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 1.55% as a percentage of average daily net assets.

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

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

See accompanying Notes to the Financial Statements.

64

Barings Diversified Income Fund (formerly Barings Total Return Bond Fund) 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.77		$	10.08		$	10.18		$	10.00
Income from investment operations:
Net investment income (2)		0.33			0.29			0.28			0.27
Net realized and unrealized gain (loss) on investments		0.05			(0.27	)		(0.09	)		0.20
Total increase from investment operations		0.38			0.02			0.19			0.47
Less dividends and distributions:
From net investment income		(0.33	)		(0.32	)		(0.29	)		(0.27	)
From net realized gain		–			–			–			(0.02	)
From return of capital		–			(0.01	)		–			–
Total dividends and distributions		(0.33	)		(0.33	)		(0.29	)		(0.29	)
Net asset value, at end of year	$	9.82		$	9.77		$	10.08		$	10.18
Total investment return (3)		4.01	%		0.13	%		1.90	%		4.89	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	12,130		$	12,070		$	12,457		$	12,582
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.29	%		1.30	%		1.36	%		1.37	%(5)
Ratio of net expenses to average net assets (6)(7)		0.55	%(8)		0.55	%		0.55	%		0.55	%(5)
Ratio of net investment income to average net assets		3.44	%		2.94	%		2.74	%		2.77	%(5)
Portfolio turnover rate		192.64	%		172.39	%		242.55	%		434.37	%(4)

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

(2) Calculated using average shares outstanding.

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

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 0.55% as a percentage of average daily net assets.

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

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

See accompanying Notes to the Financial Statements.

65

Barings Diversified Income Fund (formerly Barings Total Return Bond Fund) 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM JULY 8, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.77		$	10.08		$	10.18		$	10.00
Income from investment operations:
Net investment income (2)		0.33			0.29			0.27			0.27
Net realized and unrealized gain (loss) on investments		0.05			(0.27	)		(0.08	)		0.20
Total increase from investment operations		0.38			0.02			0.19			0.47
Less dividends and distributions:
From net investment income		(0.33	)		(0.32	)		(0.29	)		(0.27	)
From net realized gain		–			–			–			(0.02	)
From return of capital		–			(0.01	)		–			–
Total dividends and distributions		(0.33	)		(0.33	)		(0.29	)		(0.29	)
Net asset value, at end of year	$	9.82		$	9.77		$	10.08		$	10.18
Total investment return (3)		4.01	%		0.13	%		1.90	%		4.89	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	29,925		$	16,414		$	17,478		$	13,011
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.30	%		1.33	%		1.36	%		1.36	%(5)
Ratio of net expenses to average net assets (6)(7)		0.55	%(8)		0.55	%		0.55	%		0.55	%(5)
Ratio of net investment income to average net assets		3.42	%		2.95	%		2.72	%		2.77	%(5)
Portfolio turnover rate		192.64	%		172.39	%		242.55	%		434.37	%(4)

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

(2) Calculated using average shares outstanding.

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

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 0.55% as a percentage of average daily net assets.

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

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

See accompanying Notes to the Financial Statements.

66

Barings Emerging Markets Debt Blended Total Return Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 21, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.51		$	10.55		$	9.90		$	10.00
Income from investment operations:
Net investment income (2)		0.55			0.45			0.42			0.43
Net realized and unrealized gain (loss) on investments		0.60			(0.64	)		0.73			(0.19	)
Total increase (decrease) from investment operations		1.15			(0.19	)		1.15			0.24
Less dividends and distributions:
From net investment income		(0.55	)		(0.55	)		(0.50	)		(0.34	)
From net realized gain		–			(0.30	)		–			(0.00	)(3)
From return of capital		(0.05	)		–			–			–
Total dividends and distributions		(0.60	)		(0.85	)		(0.50	)		(0.34	)
Net asset value, at end of year	$	10.06		$	9.51		$	10.55		$	9.90
Total investment return (4)		12.59	%		(2.21	)%		11.94	%		2.62	%(5)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	405		$	566		$	211		$	198
Ratio of total expenses (before reductions and reimbursements) to average net assets		3.19	%		3.63	%		5.77	%		6.82	%(6)
Ratio of net expenses to average net assets (7)		1.02	%(8)		1.11	%(8)		1.15	%(8)		1.16	%(6)
Ratio of net investment income to average net assets		5.74	%		4.33	%		4.17	%		6.52	%(6)
Portfolio turnover rate		89.98	%		51.95	%		55.66	%		83.26	%(5)

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

(2) Calculated using average shares outstanding.

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

(4) Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the 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.

67

Barings Emerging Markets Debt Blended Total Return Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 21, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.51		$	10.55		$	9.90		$	10.00
Income from investment operations:
Net investment income (2)		0.49			0.48			0.35			0.38
Net realized and unrealized gain (loss) on investments		0.59			(0.74	)		0.73			(0.19	)
Total increase (decrease) from investment operations		1.08			(0.26	)		1.08			0.19
Less dividends and distributions:
From net investment income		(0.48	)		(0.48	)		(0.43	)		(0.29	)
From net realized gain		–			(0.30	)		–			(0.00	)(3)
From return of capital		(0.05	)		–			–			–
Total dividends and distributions		(0.53	)		(0.78	)		(0.43	)		(0.29	)
Net asset value, at end of year	$	10.06		$	9.51		$	10.55		$	9.90
Total investment return (4)		11.78	%		(2.90	)%		11.11	%		2.10	%(5)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	261		$	277		$	222		$	198
Ratio of total expenses (before reductions and reimbursements) to average net assets		5.02	%		5.85	%		6.47	%		7.57	%(6)
Ratio of net expenses to average net assets (7)		1.71	%(8)		1.85	%(8)		1.89	%(8)		1.90	%(6)
Ratio of net investment income to average net assets		5.14	%		4.63	%		3.44	%		5.79	%(6)
Portfolio turnover rate		89.98	%		51.95	%		55.66	%		83.26	%(5)

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

(2) Calculated using average shares outstanding.

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

(4) Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the 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.

68

Barings Emerging Markets Debt Blended Total Return Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 21, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.51		$	10.55		$	9.90		$	10.00
Income from investment operations:
Net investment income (2)		0.59			0.54			0.45			0.45
Net realized and unrealized gain (loss) on investments		0.58			(0.70	)		0.73			(0.19	)
Total increase (decrease) from investment operations		1.17			(0.16	)		1.18			0.26
Less dividends and distributions:
From net investment income		(0.57	)		(0.58	)		(0.53	)		(0.36	)
From net realized gain		–			(0.30	)		–			(0.00	)(3)
From return of capital		(0.05	)		–			–			–
Total dividends and distributions		(0.62	)		(0.88	)		(0.53	)		(0.36	)
Net asset value, at end of year	$	10.06		$	9.51		$	10.55		$	9.90
Total investment return (4)		12.86	%		(1.94	)%		12.22	%		2.79	%(5)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	23,964		$	22,650		$	5,063		$	4,753
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.44	%		1.94	%		2.76	%		2.58	%(6)
Ratio of net expenses to average net assets (7)		0.73	%(8)		0.80	%(8)		0.90	%(8)		0.92	%(6)
Ratio of net investment income to average net assets		6.18	%		5.31	%		4.42	%		6.77	%(6)
Portfolio turnover rate		89.98	%		51.95	%		55.66	%		83.26	%(5)

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

(2) Calculated using average shares outstanding.

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

(4) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the 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 Emerging Markets Debt Blended Total Return Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 21, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.51		$	10.55		$	9.90		$	10.00
Income from investment operations:
Net investment income (2)		0.59			0.55			0.45			0.45
Net realized and unrealized gain (loss) on investments		0.58			(0.71	)		0.73			(0.19	)
Total increase (decrease) from investment operations		1.17			(0.16	)		1.18			0.26
Less dividends and distributions:
From net investment income		(0.57	)		(0.58	)		(0.53	)		(0.36	)
From net realized gain		–			(0.30	)		–			(0.00	)(3)
From return of capital		(0.05	)		–			–			–
Total dividends and distributions		(0.62	)		(0.88	)		(0.53	)		(0.36	)
Net asset value, at end of year	$	10.06		$	9.51		$	10.55		$	9.90
Total investment return (4)		12.86	%		(1.94	)%		12.22	%		2.79	%(5)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	25,805		$	23,122		$	5,340		$	4,754
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.44	%		1.95	%		2.77	%		2.58	%(6)
Ratio of net expenses to average net assets (7)		0.72	%(8)		0.80	%(8)		0.90	%(8)		0.92	%(6)
Ratio of net investment income to average net assets		6.19	%		5.38	%		4.43	%		6.77	%(6)
Portfolio turnover rate		89.98	%		51.95	%		55.66	%		83.26	%(5)

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

(2) Calculated using average shares outstanding.

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

(4) Total investment return calculation assumes the reinvestment of dividends at actual prices pursuant to the 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.

70

Barings Global Emerging Markets Equity Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	PERIOD FROM SEPTEMBER 17, 2018 THROUGH JUNE 30, 2019 (1)
Per Common Share Data
Net asset value, beginning of year	$	10.00
Income from investment operations:
Net investment income (2)		0.06
Net realized and unrealized gain on investments		1.04
Total increase from investment operations		1.10
Net asset value, at end of year	$	11.10
Total investment return (3)		11.04	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	111
Ratio of total expenses (before reductions and reimbursements) to average net assets		7.43	%(5)
Ratio of net expenses to average net assets (6)		1.45	%(5)
Ratio of net investment income to average net assets		0.73	%(5)
Portfolio turnover rate		7.48	%(4)

(1) Fund commenced operations on September 17, 2018.

(2) Calculated using average shares outstanding.

(3) 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.

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 1.45% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

71

Barings Global Emerging Markets Equity Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	PERIOD FROM SEPTEMBER 17, 2018 THROUGH JUNE 30, 2019 (1)
Per Common Share Data
Net asset value, beginning of year	$	10.00
Income from investment operations:
Net investment income (2)		0.00	(3)
Net realized and unrealized gain on investments		1.04
Total increase from investment operations		1.04
Net asset value, at end of year	$	11.04
Total investment return (4)		10.39	%(5)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	110
Ratio of total expenses (before reductions and reimbursements) to average net assets		8.19	%(6)
Ratio of net expenses to average net assets (7)		2.20	%(6)
Ratio of net investment loss to average net assets		(0.03	)%(6)
Portfolio turnover rate		7.48	%(5)

(1) Fund commenced operations on September 17, 2018.

(2) Calculated using average shares outstanding.

(3) Amount rounds to less than $0.01 per share.

(4) Total investment return calculation does not consider the effects of sales loads and assumes the reinvestment of dividends at actual prices pursuant to the 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 2.20% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

72

Barings Global Emerging Markets Equity Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	PERIOD FROM SEPTEMBER 17, 2018 THROUGH JUNE 30, 2019 (1)
Per Common Share Data
Net asset value, beginning of year	$	10.00
Income from investment operations:
Net investment income (2)		0.08
Net realized and unrealized gain on investments		1.05
Total increase from investment operations		1.13
Net asset value, at end of year	$	11.13
Total investment return (3)		11.26	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	5,452
Ratio of total expenses (before reductions and reimbursements) to average net assets		2.94	%(5)
Ratio of net expenses to average net assets (6)		1.20	%(5)
Ratio of net investment income to average net assets		0.98	%(5)
Portfolio turnover rate		7.48	%(4)

(1) Fund commenced operations on September 17, 2018.

(2) Calculated using average shares outstanding.

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

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 1.20% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

73

Barings Global Emerging Markets Equity Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	PERIOD FROM SEPTEMBER 17, 2018 THROUGH JUNE 30, 2019 (1)
Per Common Share Data
Net asset value, beginning of year	$	10.00
Income from investment operations:
Net investment income (2)		0.08
Net realized and unrealized gain on investments		1.05
Total increase from investment operations		1.13
Net asset value, at end of year	$	11.13
Total investment return (3)		11.26	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	5,452
Ratio of total expenses (before reductions and reimbursements) to average net assets		2.94	%(5)
Ratio of net expenses to average net assets (6)		1.20	%(5)
Ratio of net investment income to average net assets		0.98	%(5)
Portfolio turnover rate		7.48	%(4)

(1) Fund commenced operations on September 17, 2018.

(2) Calculated using average shares outstanding.

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

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 1.20% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

74

Barings Global High Yield Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.78		$	10.44		$	10.05		$	10.00
Income from investment operations:
Net investment income (2)		0.58			0.60			0.64			0.38
Net realized and unrealized gain (loss) on investments		(0.05	)		(0.41	)		0.77			0.05
Total increase from investment operations		0.53			0.19			1.41			0.43
Less dividends and distributions:
From net investment income		(0.59	)		(0.60	)		(0.64	)		(0.38	)
From net realized gain		(0.21	)		(0.25	)		(0.38	)		–
Total dividends and distributions		(0.80	)		(0.85	)		(1.02	)		(0.38	)
Net asset value, at end of year	$	9.51		$	9.78		$	10.44		$	10.05
Total investment return (3)		5.79	%		1.79	%		14.61	%		4.45	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	2,302		$	106		$	111		$	101
Ratio of total expenses (before reductions and reimbursements) to average net assets		4.15	%		6.55	%		6.27	%		7.14	%(5)
Ratio of net expenses to average net assets (6)		1.05	%		1.05	%		1.05	%		1.04	%(5)
Ratio of net investment income to average net assets		6.08	%		5.89	%		6.20	%		5.83	%(5)
Portfolio turnover rate		67.53	%		65.26	%		87.34	%		83.24	%(4)

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

(2) Calculated using average shares outstanding.

(3) 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.

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 1.05% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

75

Barings Global High Yield Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.78		$	10.44		$	10.05		$	10.00
Income from investment operations:
Net investment income (2)		0.52			0.52			0.56			0.33
Net realized and unrealized gain (loss) on investments		(0.05	)		(0.41	)		0.77			0.05
Total increase from investment operations		0.47			0.11			1.33			0.38
Less dividends and distributions:
From net investment income		(0.52	)		(0.52	)		(0.56	)		(0.33	)
From net realized gain		(0.21	)		(0.25	)		(0.38	)		–
Total dividends and distributions		(0.73	)		(0.77	)		(0.94	)		(0.33	)
Net asset value, at end of year	$	9.52		$	9.78		$	10.44		$	10.05
Total investment return (3)		5.13	%		1.04	%		13.75	%		3.94	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	242		$	197		$	247		$	101
Ratio of total expenses (before reductions and reimbursements) to average net assets		5.32	%		4.80	%		4.94	%		7.89	%(5)
Ratio of net expenses to average net assets (6)		1.80	%		1.80	%		1.80	%		1.78	%(5)
Ratio of net investment income to average net assets		5.40	%		5.14	%		5.40	%		5.09	%(5)
Portfolio turnover rate		67.53	%		65.26	%		87.34	%		83.24	%(4)

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

(2) Calculated using average shares outstanding.

(3) 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.

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 1.80% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

76

Barings Global High Yield Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.78		$	10.44		$	10.05		$	10.00
Income from investment operations:
Net investment income (2)		0.61			0.63			0.67			0.39
Net realized and unrealized gain (loss) on investments		(0.05	)		(0.41	)		0.77			0.05
Total increase from investment operations		0.56			0.22			1.44			0.44
Less dividends and distributions:
From net investment income		(0.61	)		(0.63	)		(0.67	)		(0.39	)
From net realized gain		(0.21	)		(0.25	)		(0.38	)		–
Total dividends and distributions		(0.82	)		(0.88	)		(1.05	)		(0.39	)
Net asset value, at end of year	$	9.52		$	9.78		$	10.44		$	10.05
Total investment return (3)		6.13	%		2.05	%		14.90	%		4.62	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	11,803		$	12,130		$	12,947		$	12,466
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.58	%		1.53	%		1.53	%		1.51	%(5)
Ratio of net expenses to average net assets (6)		0.80	%		0.80	%		0.80	%		0.79	%(5)
Ratio of net investment income to average net assets		6.41	%		6.14	%		6.46	%		6.08	%(5)
Portfolio turnover rate		67.53	%		65.26	%		87.34	%		83.24	%(4)

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

(2) Calculated using average shares outstanding.

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

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 0.80% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

77

Barings Global High Yield Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.78		$	10.44		$	10.05		$	10.00
Income from investment operations:
Net investment income (2)		0.61			0.63			0.67			0.39
Net realized and unrealized gain (loss) on investments		(0.05	)		(0.41	)		0.77			0.05
Total increase from investment operations		0.56			0.22			1.44			0.44
Less dividends and distributions:
From net investment income		(0.61	)		(0.63	)		(0.67	)		(0.39	)
From net realized gain		(0.21	)		(0.25	)		(0.38	)		–
Total dividends and distributions		(0.82	)		(0.88	)		(1.05	)		(0.39	)
Net asset value, at end of year	$	9.52		$	9.78		$	10.44		$	10.05
Total investment return (3)		6.12	%		2.05	%		14.90	%		4.62	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	12,966		$	12,393		$	14,535		$	12,604
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.58	%		1.53	%		1.53	%		1.51	%(5)
Ratio of net expenses to average net assets (6)		0.80	%		0.80	%		0.80	%		0.79	%(5)
Ratio of net investment income to average net assets		6.41	%		6.14	%		6.45	%		6.08	%(5)
Portfolio turnover rate		67.53	%		65.26	%		87.34	%		83.24	%(4)

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

(2) Calculated using average shares outstanding.

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

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 0.80% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

78

Barings U.S. High Yield Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS

	CLASS A
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.82		$	10.59		$	10.14		$	10.00
Income from investment operations:
Net investment income (2)		0.58			0.61			0.65			0.39
Net realized and unrealized gain (loss) on investments		(0.02	)		(0.47	)		0.65			0.13
Total increase from investment operations		0.56			0.14			1.30			0.52
Less dividends and distributions:
From net investment income		(0.59	)		(0.61	)		(0.66	)		(0.38	)
From net realized gain		–			(0.30	)		(0.19	)		–
Total dividends and distributions		(0.59	)		(0.91	)		(0.85	)		(0.38	)
Net asset value, at end of year	$	9.79		$	9.82		$	10.59		$	10.14
Total investment return (3)		5.84	%		1.32	%		13.13	%		5.36	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	3,840		$	2,918		$	2,633		$	206
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.64	%		1.71	%		1.82	%		5.47	%(5)
Ratio of net expenses to average net assets (6)		1.00	%		1.00	%		1.00	%		0.99	%(5)
Ratio of net investment income to average net assets		5.99	%		5.92	%		6.21	%		5.93	%(5)
Portfolio turnover rate		55.98	%		43.75	%		71.57	%		77.52	%(4)

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

(2) Calculated using average shares outstanding.

(3) 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.

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 1.00% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

79

Barings U.S. High Yield Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS C
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.82		$	10.59		$	10.14		$	10.00
Income from investment operations:
Net investment income (2)		0.51			0.53			0.58			0.33
Net realized and unrealized gain (loss) on investments		(0.03	)		(0.47	)		0.64			0.14
Total increase from investment operations		0.48			0.06			1.22			0.47
Less dividends and distributions:
From net investment income		(0.51	)		(0.53	)		(0.58	)		(0.33	)
From net realized gain		–			(0.30	)		(0.19	)		–
Total dividends and distributions		(0.51	)		(0.83	)		(0.77	)		(0.33	)
Net asset value, at end of year	$	9.79		$	9.82		$	10.59		$	10.14
Total investment return (3)		5.03	%		0.61	%		12.24	%		4.85	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	98		$	98		$	118		$	101
Ratio of total expenses (before reductions and reimbursements) to average net assets		7.14	%		6.43	%		6.18	%		7.30	%(5)
Ratio of net expenses to average net assets (6)		1.75	%		1.75	%		1.75	%		1.73	%(5)
Ratio of net investment income to average net assets		5.27	%		5.17	%		5.50	%		5.08	%(5)
Portfolio turnover rate		55.98	%		43.75	%		71.57	%		77.52	%(4)

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

(2) Calculated using average shares outstanding.

(3) 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.

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 1.75% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

80

Barings U.S. High Yield Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS I
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.82		$	10.59		$	10.14		$	10.00
Income from investment operations:
Net investment income (2)		0.61			0.63			0.68			0.40
Net realized and unrealized gain (loss) on investments		(0.03	)		(0.47	)		0.64			0.13
Total increase from investment operations		0.58			0.16			1.32			0.53
Less dividends and distributions:
From net investment income		(0.61	)		(0.63	)		(0.68	)		(0.39	)
From net realized gain		–			(0.30	)		(0.19	)		–
Total dividends and distributions		(0.61	)		(0.93	)		(0.87	)		(0.39	)
Net asset value, at end of year	$	9.79		$	9.82		$	10.59		$	10.14
Total investment return (3)		6.07	%		1.61	%		13.36	%		5.53	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	12,135		$	14,816		$	15,720		$	14,863
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.11	%		1.28	%		1.36	%		1.38	%(5)
Ratio of net expenses to average net assets (6)		0.75	%		0.75	%		0.75	%		0.74	%(5)
Ratio of net investment income to average net assets		6.28	%		6.16	%		6.50	%		6.11	%(5)
Portfolio turnover rate		55.98	%		43.75	%		71.57	%		77.52	%(4)

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

(2) Calculated using average shares outstanding.

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

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 0.75% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

81

Barings U.S. High Yield Fund 2019 Annual Report

FINANCIAL HIGHLIGHTS (CONTINUED)

	CLASS Y
	FOR THE YEAR ENDED JUNE 30, 2019			FOR THE YEAR ENDED JUNE 30, 2018			FOR THE YEAR ENDED JUNE 30, 2017			PERIOD FROM OCTOBER 30, 2015 THROUGH JUNE 30, 2016 (1)
Per Common Share Data
Net asset value, beginning of year	$	9.82		$	10.58		$	10.14		$	10.00
Income from investment operations:
Net investment income (2)		0.61			0.62			0.68			0.39
Net realized and unrealized gain (loss) on investments		(0.03	)		(0.45	)		0.63			0.14
Total increase from investment operations		0.58			0.17			1.31			0.53
Less dividends and distributions:
From net investment income		(0.61	)		(0.63	)		(0.68	)		(0.39	)
From net realized gain		–			(0.30	)		(0.19	)		–
Total dividends and distributions		(0.61	)		(0.93	)		(0.87	)		(0.39	)
Net asset value, at end of year	$	9.79		$	9.82		$	10.58		$	10.14
Total investment return (3)		6.09	%		1.61	%		13.35	%		5.52	%(4)
Supplemental Data and Ratios
Net assets, end of year (000’s)	$	34,695		$	39,176		$	14,631		$	12,675
Ratio of total expenses (before reductions and reimbursements) to average net assets		1.09	%		1.25	%		1.36	%		1.42	%(5)
Ratio of net expenses to average net assets (6)		0.75	%		0.75	%		0.75	%		0.74	%(5)
Ratio of net investment income to average net assets		6.27	%		6.09	%		6.50	%		6.06	%(5)
Portfolio turnover rate		55.98	%		43.75	%		71.57	%		77.52	%(4)

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

(2) Calculated using average shares outstanding.

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

(4) Not annualized.

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

(6) The Adviser has agreed to waive and/or reimburse certain fees and/or expense so that, on an annualized basis, such expenses incurred will not exceed 0.75% as a percentage of average daily net assets.

See accompanying Notes to the Financial Statements.

82

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS

June 30, 2019

				SHARES		COST		FAIR VALUE
Equities — 0.6%*:
Common Stocks — 0.6%*:
Beverage, Food and Tobacco — 0.2%*:
CTI Foods Holding Co. LLC¤					4,657		$495,155		$512,659
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 — 0.1%*:
Boomerang Tube LLC¤					1,769		171,860		147,959
Oil and Gas — 0.3%*:
Fieldwood Energy LLC					6,469		226,415		194,070
Fieldwood Energy LLC					26,365		568,599		790,950
Sabine Oil & Gas LLC					394		22,597		11,032
Southcross Energy Holdings LP					22		–		–
Southcross Energy Partners LP					22		5,500		11,550
Templar Energy LLC¤					8,762		50,647		3,286
Templar Energy LLC¤††					6,069		60,686		13,654
Total Oil and Gas					48,103		934,444		1,024,542
Total Common Stocks					55,308		1,601,459		1,685,160
	EFFECTIVE INTEREST RATE			SHARES		COST		FAIR VALUE
Preferred Stock — 0.0%*:
Farming and Agriculture — 0.0%*:
Pinnacle Agriculture Holdings A 2¤††		2.32	%		259,648		173,408		23,368
				SHARES		COST		FAIR VALUE
WARRANTS — 0.0%*:
Diversified/Conglomerate Manufacturing — 0.0%*:
Appvion Holdings Corp. (exp. June 13, 2023)††					449		–		225
Appvion Holdings Corp. (exp. June 13, 2023)††					449		–		56
Total Diversified/Conglomerate Manufacturing					898		–		281
Oil and Gas — 0.0%*:
Sabine Oil & Gas LLC Warrants††					1,320		5,523		3,960
Sabine Oil & Gas LLC Warrants††					258		595		645
Total Oil and Gas					1,578		6,118		4,605
Total Warrants					2,476		6,118		4,886
Total Equities					317,432		1,780,985		1,713,414

See accompanying Notes to the Financial Statements.

83

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 94.1%*:
Bank Loans — 84.6%*§:
Aerospace and Defense — 0.2%*:
TransDigm, Inc., 1M LIBOR + 2.500%		4.83	%		5/30/2025		497,481		$485,404		$485,457
Automobile — 2.3%*:
Adient US LLC, 1M LIBOR + 4.2500%		6.87			5/6/2024		139,824		139,141		136,067
Belron Finance US LLC, 3M LIBOR + 2.500%+		5.04			11/13/2025		289,608		288,945		289,246
Brooks Automation, Inc., 3M LIBOR + 3.000%		5.50			10/4/2024		1,994,987		1,976,265		1,990,000
DexKo Global, Inc., 2M LIBOR + 3.500%††		5.90			7/24/2024		306,541		308,558		305,008
NN, Inc., 1M LIBOR + 3.750%		6.15			10/19/2022		1,329,385		1,331,977		1,306,121
Panther BF Aggregator 2 L P, 1M LIBOR + 3.5000%		5.90			4/30/2026		1,148,148		1,139,029		1,138,825
US Farathane LLC, 3M LIBOR + 3.500%		5.90			12/23/2021		1,181,196		1,185,707		1,133,948
Total Automobile							6,389,689		6,369,622		6,299,215
Beverage, Food and Tobacco — 2.5%*:
Amphora Finance Ltd., 3M LIBOR + 4.750%+		5.47			5/31/2025		500,000		661,278		631,800
CTI Foods Holding Co, LLC		10.58			5/3/2024		197,652		197,652		187,770
CTI Foods Holding Co, LLC		9.58			5/3/2024		310,804		304,788		310,804
Deoleo, S.A., EURIBOR + 3.500%+††		4.50			6/11/2021		500,000		597,749		218,892
IRB Holding Corp., 1M LIBOR + 3.250%		5.64			2/5/2025		2,582,543		2,593,292		2,547,446
Labeyrie Fine Foods SAS, EURIBOR + 4.250%+		4.25			5/23/2023		500,000		553,839		565,946
Refresco Group B.V., EURIBOR + 3.250%+		5.77			3/28/2025		157,452		156,803		156,664
Refresco Group B.V., EURIBOR + 3.250%+		3.25			3/28/2025		500,000		581,371		564,644
Sigma Bidco B.V., EURIBOR + 3.500%+		3.50			7/2/2025		1,000,000		1,148,336		1,112,459
Sigma Bidco B.V., LIBOR + 4.000%+		4.85			7/2/2025		500,000		644,981		616,243
Total Beverage, Food and Tobacco							6,748,451		7,440,089		6,912,668
Broadcasting and Entertainment — 6.0%*:
AP NMT Acquisition B.V., EURIBOR + 6.000%+		7.00			8/13/2021		518,620		634,226		589,169
AP NMT Acquisition B.V., 3M LIBOR + 5.750%+		8.35			8/13/2021		2,062,190		2,033,506		2,044,146
AP NMT Acquisition B.V., 3M LIBOR + 9.000%+		11.60			8/13/2022		2,182,721		2,169,839		2,157,248
Charter Communications Operating, LLC, 3M LIBOR + 2.000%		4.33			4/30/2025		1,989,899		1,982,620		1,986,914
CSC Holdings, LLC, 1M LIBOR + 2.250%		4.64			7/15/2025		1,174,457		1,159,525		1,154,268
CSC Holdings, LLC, 1M LIBOR + 3.000%		5.39			4/15/2027		944,680		935,609		944,916
E.W. Scripps Co. (The), LIBOR + 2.750%		5.15			5/1/2026		997,500		992,566		994,587
iHeartCommunications, Inc., LIBOR + 4.000%		6.58			4/30/2026		2,000,000		2,005,000		2,001,880
Imagina Media Audiovisual, S.L., EURIBOR + 4.500%+		4.50			6/26/2025		500,000		569,216		569,023
Imagina Media Audiovisual, S.L., EURIBOR + 7.500%+		7.50			12/28/2025		500,000		542,806		568,550
Intelsat Jackson Holdings S.A., 1M LIBOR + 3.750%		6.15			11/27/2023		1,500,000		1,492,163		1,483,125

See accompanying Notes to the Financial Statements.

84

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Broadcasting and Entertainment (Continued)
Technicolor S.A., EURIBOR + 3.000%+††		3.00	%		12/6/2023		500,000	$	538,791	$	506,578
Univision Communications, Inc., 1M LIBOR + 2.750%		5.15			3/15/2024		1,426,718		1,413,716		1,356,723
Total Broadcasting and Entertainment							16,296,785		16,469,583		16,357,127
Buildings and Real Estate — 2.7%*:
Core & Main L.P., 6M LIBOR + 3.000%		5.52			8/1/2024		1,477,500		1,486,761		1,472,417
GYP Holdings III Corp., 1M LIBOR + 2.750%		5.15			6/1/2025		1,984,963		1,980,552		1,930,793
LSF10 Impala Investments S.a r.l., EURIBOR + 4.750%+		4.75			10/10/2025		500,000		574,228		569,261
Quikrete Holdings, Inc., 1M LIBOR + 2.750%		5.15			11/15/2023		1,000,000		1,000,906		981,390
SRS Distribution, Inc., 3M LIBOR + 3.250%		5.65			5/23/2025		2,434,994		2,420,960		2,332,018
Total Buildings and Real Estate							7,397,457		7,463,407		7,285,879
Cargo Transport — 1.0%*:
American Airlines, Inc., 1M LIBOR + 2.000%		4.40			4/28/2023		989,796		974,142		975,197
Kenan Advantage Group, Inc., 1M LIBOR + 3.000%		5.40			7/31/2022		1,929,888		1,932,754		1,859,930
Total Cargo Transport							2,919,684		2,906,896		2,835,127
Chemicals, Plastics and Rubber — 7.0%*:
Allnex (Luxembourg) & Cy S.C.A., EURIBOR + 3.250%+		3.25			9/13/2023		680,725		771,148		762,682
Allnex (Luxembourg) & Cy S.C.A., 3M LIBOR + 3.250%+		5.77			9/13/2023		361,636		360,544		353,727
Allnex USA, Inc., 3M LIBOR + 3.250%+		5.77			9/13/2023		272,452		271,630		266,494
Archroma Finance Sarl, EURIBOR + 3.750%+		3.75			8/11/2024		1,000,000		1,153,137		1,141,364
Associated Asphalt Partners LLC, 1M LIBOR + 5.250%		7.65			4/5/2024		288,960		287,974		280,773
Axalta Coating Systems US Holdings Inc., 3M LIBOR + 1.750%		4.08			6/1/2024		147,753		145,331		145,860
Colouroz Investment 1 GmbH, EURIBOR + 3.0000%+		3.75			9/7/2021		326,245		386,086		324,601
Consolidated Energy Finance, S.A., 1M LIBOR + 2.500%		4.90			5/7/2025		1,492,462		1,442,718		1,451,420
Diamond B.V., EURIBOR + 3.2500%		3.25			9/6/2024		987,475		1,152,627		1,028,818
Flint Group GmbH, EURIBOR + 3.000%+		3.75			9/7/2021		757,710		868,174		753,894
Flint Group GmbH, 3M LIBOR + 3.000%+		5.58			9/7/2021		526,801		507,700		435,928
Flint Group US LLC, 3M LIBOR + 3.000%+		5.58			9/7/2021		3,060,391		2,950,099		2,532,473
GrafTech Finance, Inc., 1M LIBOR + 3.500%		5.90			2/12/2025		1,775,783		1,773,424		1,740,267
Ineos US Finance LLC, EURIBOR + 2.000%+		2.50			3/31/2024		1,484,931		1,713,504		1,679,600
Momentive Performance Materials, Inc., LIBOR + 3.250%		5.59			5/19/2024		411,108		409,089		406,997
Novacap S.A., EURIBOR + 3.500%+		3.50			6/22/2023		1,000,000		1,134,981		1,097,779

See accompanying Notes to the Financial Statements.

85

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Chemicals, Plastics and Rubber (Continued)
Pinnacle Operating Corp., 1M LIBOR +5.500%		4.83	%		11/15/2021		728,758	$	700,925	$	539,281
Platform Specialty Products Corp., 1M LIBOR + 2.250%		4.65			1/30/2026		663,060		662,279		660,368
Polar US Borrower, LLC, 3M LIBOR + 4.750%		7.34			10/15/2025		834,231		834,231		822,760
Solenis Holdings LLC, 3M LIBOR + 4.000%		6.52			6/26/2025		634,940		629,464		626,210
Starfruit Finco B.V, EURIBOR + 3.750%+		3.75			10/1/2025		500,000		588,925		570,176
Tronox Finance LLC, 3M LIBOR + 3.000%		5.37			9/22/2024		1,428,497		1,425,849		1,412,941
Total Chemicals, Plastics and Rubber							19,363,918		20,169,839		19,034,413
Commercial Services — 1.4%*:
Masmovil Holdphone SA, LIBOR + 3.250%+		3.25			5/31/2026		500,000		557,623		567,446
Syniverse Holdings, Inc., 1M LIBOR + 5.000%		7.40			3/9/2023		1,561,433		1,565,964		1,432,615
Syniverse Holdings, Inc., 1M LIBOR + 9.000%		11.40			3/11/2024		425,482		420,477		309,751
Virgin Media Investment Holdings Ltd., LIBOR - GBP + 3.250%+		3.98			11/15/2027		1,250,000		1,725,687		1,574,547
Total Commercial Services							3,736,915		4,269,751		3,884,359
Containers, Packaging and Glass — 3.8%*:
Albea Beauty Holdings S.A., 1M LIBOR + 3.000%+		5.52			4/22/2024		614,512		613,898		599,918
Berry Global, Inc., LIBOR + 2.500%		4.82			5/22/2026		1,500,000		1,496,250		1,488,915
BWAY Holding Co., 1M LIBOR + 3.250%		5.85			4/3/2024		2,459,899		2,454,852		2,372,769
Flex Acquisition Co., Inc., 3M LIBOR + 3.000%		5.44			12/29/2023		1,554,316		1,566,943		1,474,657
ProAmpac PG Borrower LLC, 1M LIBOR + 3.500%		5.99			11/18/2023		731,250		733,570		700,633
ProAmpac PG Borrower LLC, 3M LIBOR + 8.500%		11.02			11/18/2024		750,000		742,414		709,687
Reynolds Group Holdings, Inc., 1M LIBOR + 2.750%		5.15			2/5/2023		1,979,696		1,987,826		1,963,264
Roy Bidco ApS, EURIBOR + 3.250%+		3.50			8/23/2024		1,000,000		1,153,882		1,121,181
Total Containers, Packaging and Glass							10,589,673		10,749,635		10,431,024
Diversified/Conglomerate Manufacturing — 3.4%*:
Amer Sports Oyj, EURIBOR + 4.500%+		4.50			3/1/2026		500,000		562,758		568,726
LTI Holdings, Inc., 1M LIBOR + 3.500%		5.90			9/6/2025		1,433,096		1,435,117		1,353,388
PCF GmbH, EURIBOR + 5.000%+††		5.00			8/1/2024		500,000		526,014		552,562
Project Alpha Intermediate Holding, Inc., 3M LIBOR + 3.500%		6.37			4/26/2024		1,573,099		1,574,366		1,521,974
SGB-SMIT Management GmbH, 1M LIBOR + 5.000%+		5.00			7/18/2024		500,000		485,665		473,790
Triple Point Technology, Inc., 3M LIBOR + 4.250%		6.58			7/10/2020		928,634		915,202		885,294
Wilsonart LLC, 3M LIBOR + 3.250%		5.58			12/19/2023		600,275		600,728		585,418

See accompanying Notes to the Financial Statements.

86

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Diversified/Conglomerate Manufacturing (Continued)
Winebow Group, Inc. (The), 1M LIBOR + 3.750%		6.15	%		7/1/2021		1,737,898	$	1,653,872	$	1,555,419
Xella International GmbH, EURIBOR + 4.000%+		3.75			4/11/2024		1,500,000		1,830,247		1,687,263
Total Diversified/Conglomerate Manufacturing							9,273,002		9,583,969		9,183,834
Diversified/Conglomerate Service — 9.3%*:
Allied Universal Holdco LLC, LIBOR + 4.250%††		6.57			6/27/2026		529,422		524,128		526,775
Almonde, Inc., 3M LIBOR + 7.250%+		9.65			6/13/2025		752,587		763,848		745,219
Almonde, Inc., 3M LIBOR + 3.500%+		5.90			6/13/2024		2,729,510		2,683,624		2,655,977
Canyon Valor Cos., Inc., 3M LIBOR + 2.750%		5.08			6/16/2023		442,340		441,587		439,243
Capri Finance LLC, 3M LIBOR + 3.250%+		5.83			11/1/2024		494,990		493,940		484,348
EAB Global, Inc., LIBOR + 3.750%		6.38			11/15/2024		747,635		744,756		740,159
Financial & Risk US Holdings, Inc., 1M LIBOR + 3.750%		6.15			10/1/2025		1,492,500		1,440,018		1,446,322
Hyland Software, Inc., 1M LIBOR + 3.500%		5.65			7/1/2024		980,063		984,206		972,712
I-Logic Technologies Bidco Ltd., 1M LIBOR + 3.250%+		5.58			12/21/2024		1,008,009		1,012,424		976,509
Infor (US), Inc., 3M LIBOR + 2.750%		5.08			2/1/2022		1,953,858		2,044,933		2,015,476
Informatica LLC, 1M LIBOR + 3.250%		5.65			8/5/2022		1,381,821		1,384,372		1,382,401
Kronos, Inc., 3M LIBOR + 3.500%		5.58			11/1/2023		1,567,615		1,570,500		1,563,507
LegalZoom.com, Inc., 1M LIBOR + 4.500%		6.90			11/23/2024		582,580		577,299		582,947
MH Sub I LLC, 3M LIBOR + 3.750%		6.15			9/13/2024		1,041,058		1,047,848		1,021,538
Project Leopard Holdings, Inc., 1M LIBOR + 4.500%		6.70			7/7/2023		1,484,003		1,490,224		1,479,062
Red Ventures, LLC, 1M LIBOR + 3.000%††		5.40			11/8/2024		1,325,211		1,318,236		1,320,427
Sabre GLBL Inc., 1M LIBOR + 2.000%		4.40			2/22/2024		148,632		146,915		148,198
TMF Group Holding B.V., EURIBOR + 3.250%+		3.25			5/5/2025		500,000		584,613		529,701
Verisure Holding AB, EURIBOR + 3.000%+		3.00			10/21/2022		2,700,000		3,095,122		3,038,640
Verisure Holding AB, EURIBOR + 3.500%+		3.50			10/22/2022		500,000		566,875		568,357
Vertafore, Inc., 1M LIBOR + 3.250%		5.65			7/2/2025		1,990,000		1,989,114		1,909,564
Vertafore, Inc., 1M LIBOR + 7.250%		9.65			7/2/2026		1,000,000		991,194		970,420
Total Diversified/Conglomerate Service							25,351,834		25,895,776		25,517,502
Ecological — 0.7%*:
Emerald 3 Ltd., 3M LIBOR + 7.000%		9.40			5/31/2022		390,426		388,981		389,450
Emerald US, Inc., 3M LIBOR + 4.000%		6.40			5/14/2021		529,428		511,917		528,242
PHS Group Ltd., 1M LIBOR + 5.250%+		6.25			12/20/2021		714,228		915,783		906,354
Total Ecological							1,634,082		1,816,681		1,824,046

See accompanying Notes to the Financial Statements.

87

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Electronics — 5.5%*:
EXC Holdings III Corp., 3M LIBOR + 3.500%		5.83	%		11/30/2024		489,713	$	494,251	$	487,876
II-VI, Inc., LIBOR + 3.500%		5.82			6/28/2026		568,912		563,223		560,025
ION Trading Technologies Sarl, 3M LIBOR + 4.000%		6.33			11/21/2024		1,705,205		1,687,611		1,649,479
ION Trading Technologies Sarl, EURIBOR + 3.250%		4.25			11/21/2024		1,381,750		1,564,591		1,527,540
Omnitracs, Inc., 3M LIBOR + 2.750%		5.10			3/21/2025		2,998,539		2,990,461		2,949,813
Renaissance Holding Corp., 1M LIBOR + 3.250%		5.73			5/31/2025		741,259		741,259		717,784
RP Crown Parent LLC, 1M LIBOR + 2.750%		5.15			10/12/2023		1,733,561		1,730,554		1,723,264
Sophia LP, LIBOR + 3.250%		5.58			9/30/2022		1,443,023		1,449,143		1,438,333
SS&C Technologies Holdings Europe S.A.R.L., 1M LIBOR + 2.500%		4.65			4/16/2025		19,246		18,838		19,160
SS&C Technologies Inc., 1M LIBOR + 2.500%		4.65			4/16/2025		28,064		27,460		27,938
SS&C Technologies Inc., 1M LIBOR + 2.250%		4.65			4/16/2025		477,432		476,349		475,508
Veritas Bermuda Ltd., 3M LIBOR + 4.500%		6.89			1/27/2023		1,270,750		1,267,676		1,154,006
Veritas Bermuda Ltd., EURIBOR + 4.500%		5.50			1/27/2023		782,000		871,852		816,777
Wall Street Systems Delaware, Inc., 1M LIBOR + 3.000%		5.33			11/21/2024		1,055,112		1,055,112		1,020,821
Wall Street Systems Delaware, Inc., EURIBOR + 3.000%		2.66			11/21/2024		492,053		578,423		556,369
Total Electronics							15,186,619		15,516,803		15,124,693
Farming and Agriculture — 0.9%*:
Dole Food Co. Inc., 1M LIBOR + 2.750%		5.15			4/6/2024		2,386,141		2,394,374		2,327,227
Finance — 2.4%*:
Evergood 4 ApS, EURIBOR + 3.750%+		3.75			2/6/2025		500,000		566,218		570,034
NAB Holdings LLC, 3M LIBOR + 3.000%		5.33			6/28/2024		985,025		986,452		971,067
Nets Holding A/S, EURIBOR + 3.000%+		3.25			2/6/2025		440,972		522,706		497,042
NFP Corp., 1M LIBOR + 3.000%		5.40			1/6/2024		2,502,779		2,518,139		2,430,423
Tempo Acquisition LLC, 1M LIBOR + 3.000%		5.40			5/1/2024		2,098,153		2,102,843		2,088,103
Total Finance							6,526,929		6,696,358		6,556,669
Healthcare, Education and Childcare — 9.8%*:
Advanz Pharma Corp., LIBOR + 5.500%+		7.91			9/6/2024		2,314,750		2,281,124		2,219,267
Advanz Pharma Corp., EURIBOR + 5.250%+		6.25			9/6/2024		492,500		570,627		552,848
Aenova Holding GmbH, EURIBOR + 4.000%+		5.00			9/29/2020		2,000,000		2,303,815		2,261,874
Arbor Pharmaceuticals, Inc., 3M LIBOR + 5.000%		7.33			7/5/2023		1,475,365		1,468,254		1,370,865
Auris Luxembourg III Sarl, LIBOR + 3.750%		6.15			2/27/2026		997,500		992,717		997,999
Avantor, Inc., 1M LIBOR +3.750%		5.40			11/21/2024		766,409		775,595		769,283
Aveanna Healthcare, LLC, 1M LIBOR + 5.500%		7.90			3/18/2024		1,290,079		1,275,362		1,242,772

See accompanying Notes to the Financial Statements.

88

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Healthcare, Education and Childcare (Continued)
Catalent Pharma Solutions, Inc., LIBOR + 2.250%		4.65	%		5/17/2026		355,676	$	354,798	$	355,381
Cerba Healthcare S.A.S., EURIBOR + 3.000%+		3.00			4/20/2024		1,000,000		1,172,822		1,124,023
Endo Luxembourg Finance Co. I S.a r.l., 1M LIBOR + 4.250%		6.65			4/27/2024		2,518,041		2,521,707		2,358,574
Financiere Mendel SAS, EURIBOR + 4.750%+		4.75			3/31/2026		500,000		552,640		572,359
Horizon Pharma, Inc., LIBOR + 2.500%		4.94			5/22/2026		612,505		612,318		611,102
Indivior Finance Sarl, 3M LIBOR + 4.500%		7.09			12/31/2022		798,066		789,991		715,602
Lifescan Global Corp., 3M LIBOR + 6.000%		8.66			9/28/2024		386,000		375,820		367,665
Mallinckrodt International Finance S.A., 3M LIBOR + 2.750%		5.08			9/24/2024		1,247,838		1,242,326		1,119,411
Nidda Healthcare Holding AG, EURIBOR + 3.500%+		3.50			8/21/2024		1,000,000		1,152,944		1,133,223
Nidda Healthcare Holding AG, GBP + 4.500%+		5.30			8/21/2024		500,000		678,300		636,791
Ortho-Clinical Diagnostics SA, 3M LIBOR + 3.250%		5.68			6/30/2025		1,442,576		1,443,189		1,385,479
Press Ganey Holdings, Inc., 1M LIBOR + 2.750%		5.15			10/23/2023		1,218,750		1,224,008		1,217,227
Radiology Partners Holdings, LLC, LIBOR + 4.750%		7.36			7/9/2025		316,014		314,434		315,028
Riemser Pharma GmbH, EURIBOR + 5.500%+		5.50			6/29/2023		442,831		485,036		501,025
Rodenstock GmbH, LIBOR + 5.250%+		5.25			6/30/2026		500,000		555,411		558,743
Team Health Holdings, Inc., 1M LIBOR + 2.750%		5.15			2/6/2024		1,967,299		1,923,824		1,738,600
Tunstall Group Holdings Ltd., 3M LIBOR + 5.000%+		4.41			10/16/2020		515,926		814,301		653,018
Unilabs Holding AB, EURIBOR + 3.000%+		3.00			4/19/2024		500,000		572,577		558,856
Valeant Pharmaceuticals International, Inc., 1M LIBOR + 3.000%		5.41			5/31/2025		902,475		907,607		901,915
Verscend Holding Corp., 1M LIBOR + 4.500%		6.90			8/27/2025		630,278		626,102		629,887
Total Healthcare, Education and Childcare							26,690,878		27,987,649		26,868,817
Home and Office Furnishings, Housewares, and Durable Consumer Products — 0.9%*:
Serta Simmons Bedding LLC, 3M LIBOR + 3.500%		5.91			11/8/2023		1,691,357		1,686,021		1,088,811
Serta Simmons Bedding LLC, 1M LIBOR + 8.000%		10.39			11/8/2024		724,667		669,965		317,404
SIWF Holdings Inc., 1M LIBOR + 4.250%		6.65			6/15/2025		992,481		1,000,997		982,557
Total Home and Office Furnishings, Housewares, and Durable Consumer Products							3,408,505		3,356,983		2,388,772

See accompanying Notes to the Financial Statements.

89

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Hotels, Motels, Inns and Gaming — 2.6%*:
Caesars Resort Collection LLC, 1M LIBOR + 2.750%		5.15	%		12/23/2024		1,243,604	$	1,240,872	$	1,221,580
Compass IV Ltd., EURIBOR + 4.500%+		4.50			4/30/2025		500,000		598,578		571,393
Compass IV Ltd., EURIBOR + 8.000%+		9.00			4/30/2026		500,000		587,816		559,550
Financiere Sun S.A.S., EURIBOR + 3.000%+††		3.00			3/14/2023		338,983		404,369		384,687
Las Vegas Sands LLC, 1M LIBOR + 1.750%		4.15			3/27/2025		154,409		151,850		153,128
Penn National Gaming, Inc., 1M LIBOR + 2.250%		4.65			10/15/2025		2,015,868		2,010,981		2,006,736
Richmond UK Bidco Ltd., GBP LIBOR + 4.250%+		4.97			3/3/2024		482,094		607,938		590,501
Rouge Beachhouse B.V., EURIBOR + 4.250%+		4.25			9/4/2025		500,000		586,575		572,342
Tackle Sarl, EURIBOR +3.500%+		3.25			8/8/2022		1,000,000		1,117,524		1,130,152
Total Hotels, Motels, Inns and Gaming							6,734,958		7,306,503		7,190,069
Insurance — 3.7%*:
Alliant Holdings I, Inc., 1M LIBOR + 2.750%		5.40			5/9/2025		2,782,987		2,793,806		2,699,804
AssuredPartners, Inc., 1M LIBOR + 3.250%		5.90			10/22/2024		1,775,922		1,785,815		1,755,943
Asurion LLC, 1M LIBOR + 3.000%		5.40			11/3/2023		1,539,979		1,545,867		1,536,129
Confie Seguros Holding II Co., 3M LIBOR + 8.500%		11.02			11/2/2025		1,633,627		1,603,955		1,565,831
Hub International Ltd., 2M LIBOR + 2.750%		5.59			4/25/2025		1,980,000		1,975,872		1,928,916
York Risk Services Holding Corp., 1M LIBOR + 3.750%		6.15			10/1/2021		690,637		683,476		651,070
Total Insurance							10,403,152		10,388,791		10,137,693
Leisure, Amusement, Entertainment — 5.8%*:
Columbus Capital B.V., EURIBOR + 4.750%+		4.75			6/30/2024		500,000		570,275		567,601
Crown Finance US, Inc., 1M LIBOR + 2.500%		4.65			2/28/2025		1,756,880		1,735,259		1,726,679
Delta 2 (LUX) Sarl, 1M LIBOR + 2.500%+		4.90			2/1/2024		1,394,967		1,398,703		1,360,790
Dorna Sports, S.L., EURIBOR +2.750%+		2.75			4/12/2024		978,282		1,093,131		1,098,088
Eldorado Resorts LLC, LIBOR + 2.500%		4.69			4/17/2024		642,001		637,232		638,990
International Park Holdings B.V., EURIBOR + 3.500%+		3.50			6/13/2024		500,000		580,575		561,443
Metro-Goldwyn-Mayer, Inc., 1M LIBOR + 4.500%		6.91			7/3/2026		2,000,000		1,982,346		1,932,500
SeaWorld Parks & Entertainment, Inc., 3M LIBOR + 3.000%		5.40			3/31/2024		2,546,731		2,538,268		2,535,806
Vacalians Group, EURIBOR + 4.000%+		4.00			10/31/2025		500,000		564,631		567,367
Vougeot Bidco PLC, EURIBOR + 5.500%+		5.50			7/18/2023		1,000,000		1,163,932		1,133,780
Vue International Bidco PLC, LIBOR + 4.750%+		4.75			6/30/2026		500,000		558,668		569,971
William Morris Endeavor Entertainment, LLC, 2M LIBOR + 2.750%		5.16			5/18/2025		1,827,425		1,823,058		1,760,414

See accompanying Notes to the Financial Statements.

90

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Leisure, Amusement, Entertainment (Continued)
WMG Acquisition Corp., LIBOR + 2.125%		4.53	%		11/1/2023		1,500,000	$	1,498,387	$	1,478,250
Total Leisure, Amusement, Entertainment							15,646,286		16,144,465		15,931,679
Machinery Non-Agriculture, Non-Construction, Non-Electronic — 1.7%*:
Alison Bidco Sarl, 1M LIBOR + 4.500%+		7.08			8/29/2021		246,044		245,280		221,850
Alison Bidco Sarl, EURIBOR + 4.500%+		5.50			8/30/2021		859,950		995,924		939,957
Apex Tool Group LLC, 1M LIBOR + 3.750%		6.15			2/1/2022		1,668,581		1,666,507		1,600,453
Titan Acquisition Ltd., 1M LIBOR + 3.000%+		5.40			3/28/2025		1,975,891		1,973,988		1,884,230
Total Machinery Non-Agriculture, Non-Construction, Non-Electronic							4,750,466		4,881,699		4,646,490
Mining, Steel, Iron and Non-Precious Metals — 0.5%*:
Big River Steel LLC, 3M LIBOR + 5.000%		7.33			8/23/2023		619,243		626,147		620,791
Boomerang Tube, LLC, 3M LIBOR + 3.000%¤††		7.40			10/31/2021		62,044		62,044		62,044
US Silica Co., 1M LIBOR + 4.000%		6.44			5/1/2025		873,676		882,915		819,071
Total Mining, Steel, Iron and Non-Precious Metals							1,554,963		1,571,106		1,501,906
Oil and Gas — 1.4%*:
Fieldwood Energy LLC, 1M LIBOR + 7.250%		9.65			4/11/2023		864,968		447,831		717,924
Gulf Finance LLC, 3M LIBOR + 5.250%		7.65			8/25/2023		1,639,934		1,522,695		1,335,857
KCA Deutag Alpha Ltd., 3M LIBOR + 6.750%+		9.08			2/28/2023		495,000		493,062		370,364
Seadrill Partners Finco LLC, 3M LIBOR + 6.000%		8.33			2/21/2021		1,813,994		1,470,655		1,292,471
Total Oil and Gas							4,813,896		3,934,243		3,716,616
Personal and Non-Durable Consumer Products Mfg. Only — 0.6%*:
Coty Inc., 1M LIBOR + 2.250%		4.67			4/7/2025		992,481		955,159		967,669
Party City Holdings Inc., 1M LIBOR + 2.500%		4.91			8/19/2022		815,187		809,922		808,926
Total Personal and Non-Durable Consumer Products Mfg. Only							1,807,668		1,765,081		1,776,595
Personal Transportation — 0.7%*:
Hertz Corp., (The), 3M LIBOR + 2.7500%		5.16			6/30/2023		1,979,221		1,945,668		1,969,938
Printing and Publishing — 0.7%*:
Springer Nature Deutschland GmbH, EURIBOR + 3.250%+		3.75			8/24/2022		1,715,134		1,953,452		1,948,505
Retail Stores — 3.9%*:
24 Hour Fitness Worldwide, Inc., 1M LIBOR + 3.500%		5.90			5/30/2025		2,500,598		2,510,917		2,488,545
Bass Pro Group, LLC, 1M LIBOR + 5.000%		7.40			9/25/2024		994,937		979,975		948,712

See accompanying Notes to the Financial Statements.

91

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Retail Stores (Continued)
EG Finco Ltd., 3M LIBOR + 4.000%+		6.33	%		2/6/2025		1,091,814	$	1,087,302	$	1,072,248
EG Group Ltd., EURIBOR + 4.000%+		4.00			1/31/2025		1,485,425		1,742,605		1,669,129
EG Group Ltd., 3M LIBOR + 4.000%+		6.33			2/7/2025		222,244		221,791		218,261
Eyemart Express LLC, 1M LIBOR + 3.000%		5.44			8/2/2024		992,424		996,243		982,083
Harbor Freight Tools USA, Inc., 1M LIBOR + 2.500%		4.90			8/18/2023		499,578		494,255		485,760
Kirk Beauty One GmbH, EURIBOR + 3.500%+		3.50			8/13/2022		2,250,000		2,555,815		2,152,318
Thom Europe S.A.S, EURIBOR + 4.250%+		4.25			8/7/2024		500,000		576,557		566,776
Total Retail Stores							10,537,020		11,165,460		10,583,832
Telecommunications — 3.2%*:
Banff Merger Sub, Inc., 3M LIBOR + 4.250%		6.58			10/2/2025		995,000		986,098		940,583
CommScope, Inc., 1M LIBOR + 3.250%		5.65			4/6/2026		1,507,464		1,500,133		1,501,434
Digicel International Finance Ltd., 3M LIBOR + 3.250%+		5.78			5/25/2024		420,600		423,358		363,819
Eircom Finco Sarl+		3.00			5/14/2026		1,000,000		1,092,307		1,137,419
GTT Communications, Inc., 1M LIBOR + 2.750%		5.15			5/31/2025		1,990,800		1,982,333		1,779,278
Sprint Communications, Inc., 1M LIBOR + 2.500%		4.94			2/3/2024		2,954,735		2,963,118		2,906,720
Total Telecommunications							8,868,599		8,947,347		8,629,253
Total Bank Loans							233,209,406		239,576,634		231,349,405
Corporate Bonds — 9.5%*:
Automobile — 0.4%*:
AA Bond Co. Ltd.+		5.50			7/31/2022		700,000		937,651		755,620
Panther BF Aggregator 2 LP/Panther Finance Co., Inc.		4.38			5/15/2026		100,000		113,415		117,406
RAC Bond Co. PLC+		5.00			11/6/2022		200,000		252,272		227,533
Total Automobile							1,000,000		1,303,338		1,100,559
Beverage, Food and Tobacco — 0.1%*:
Restaurant Brands+^		5.00			10/15/2025		327,000		327,000		329,551
Broadcasting and Entertainment — 0.4%*:
Entertainment One Ltd.+		4.63			7/15/2026		100,000		125,820		130,551
Tele Columbus AG+		3.88			5/2/2025		800,000		855,748		846,285
VTR Finance BV+^		6.88			1/15/2024		200,000		202,242		207,000
Total Broadcasting and Entertainment							1,100,000		1,183,810		1,183,836

See accompanying Notes to the Financial Statements.

92

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Chemicals, Plastics and Rubber — 0.2%*:
Monitchem HoldCo 3 SA, 3 mo. EURIBOR + 4.750%+		4.43	# %		6/15/2021		250,000	$	289,303	$	284,275
Monitchem HoldCo 3 SA+		5.25			6/15/2021		200,000		228,915		227,659
Pinnacle Operating Corp.^		9.00			5/15/2023		378,294		444,762		124,837
Total Chemicals, Plastics and Rubber							828,294		962,980		636,771
Containers, Packaging and Glass — 0.1%*:
BWAY Holding Co.^		5.50			4/15/2024		207,000		207,000		207,103
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu^		5.13			7/15/2023		178,000		178,000		181,338
Total Containers, Packaging and Glass							385,000		385,000		388,441
Diversified/Conglomerate Manufacturing — 0.2%*:
Appvion ESC, 3M EURIBOR + 4.125%^¤		9.00	#		6/1/2020		460,000		461,698		–
Fabric BC SpA, 3M EURIBOR + 4.125%+		4.13	#		11/30/2024		250,000		284,680		284,275
Galapagos S.A., 3 mo. EURIBOR + 4.750%+††		4.43	#		6/15/2021		200,000		272,630		221,735
Total Diversified/Conglomerate Manufacturing							910,000		1,019,008		506,010
Diversified/Conglomerate Service — 1.0%*:
ADT LLC/Prime Finance, Inc.^		9.25			5/15/2023		78,000		78,000		81,915
Algeco Global Finance PLC, 3 mo. EURIBOR + 6.250%+		6.25	#		2/15/2023		150,000		182,704		172,271
Algeco Global Finance PLC+		6.50			2/15/2023		450,000		548,280		533,928
Carlson Travel, Inc., 3 mo. EURIBOR + 4.750%		4.75	#		6/15/2023		1,200,000		1,370,064		1,364,998
TeamSystem SpA, 3 mo. EURIBOR + 4.000%+		4.00	#		4/15/2023		400,000		492,740		455,295
Total Diversified/Conglomerate Service							2,278,000		2,671,788		2,608,407
Electronics — 0.3%*:
First Data Corp.^		5.00			1/15/2024		179,000		178,293		183,386
Veritas US, Inc./Veritas Bermuda Ltd.^		7.50			2/1/2023		817,000		855,879		763,895
Total Electronics							996,000		1,034,172		947,281
Finance — 2.2%*:
Arrow Global Finance PLC, 3 mo. EURIBOR + 3.750%+		3.75	#		3/1/2026		400,000		496,520		445,962
Arrow Global Finance PLC+		5.13			9/15/2024		1,000,000		1,234,339		1,246,138
Cabot Financial Luxembourg SA+		7.50			10/1/2023		300,000		424,835		393,367
Galaxy Bidco Ltd., 3M GBP LIBOR + 4.500%+		5.31	#		11/15/2020		300,000		399,129		375,841
Galaxy Bidco Ltd.+		6.38			11/15/2020		500,000		638,553		632,117
Garfunkelux Holdco 3 S.A., 3M EURIBOR + 4.500%+		4.50	#		9/1/2023		1,100,000		1,327,506		1,044,116
Garfunkelux Holdco 3 S.A.+		8.50			11/1/2022		1,050,000		1,398,085		1,196,102
Jerrold Finco PLC+		6.13			1/15/2024		100,000		124,555		128,951

See accompanying Notes to the Financial Statements.

93

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Finance (Continued)
Jerrold Finco PLC+		6.25	%		9/15/2021		500,000	$	690,896	$	646,880
Total Finance							5,250,000		6,734,418		6,109,474
Healthcare, Education and Childcare — 0.6%*:
Rossini Sarl, EURIBOR + 6.25%+		6.25	#		10/30/2025		750,000		875,155		875,937
Synlab Bondco PLC+		6.25			7/1/2022		500,000		606,432		577,647
Tenet Healthcare Corp.		4.63			7/15/2024		255,000		254,169		258,187
Total Healthcare, Education and Childcare							1,505,000		1,735,756		1,711,771
Home and Office Furnishings, Housewares, and Durable Consumer Products — 0.2%*:
Balta+		7.75			9/15/2022		445,500		550,119		503,341
Hotels, Motels, Inns and Gaming — 0.4%*:
Travelodge+		8.50			5/15/2023		280,000		387,457		371,324
TVL Finance PLC, 3M GBP LIBOR + 4.875%+		5.68	#		5/15/2023		100,000		131,117		126,355
TVL Finance PLC, 3M LIBOR + 5.370%+††		6.14	#		7/15/2025		450,000		568,620		568,620
Total Hotels, Motels, Inns and Gaming							830,000		1,087,194		1,066,299
Leisure, Amusement, Entertainment — 0.5%*:
Center Parks.+		4.88			8/28/2025		600,000		791,721		762,151
Perform Group Financing PLC+		8.50			11/15/2020		250,000		346,510		321,297
Vue International Bidco PLC, 3M EURIBOR + 5.250%+		4.94	#		7/15/2020		100,000		134,154		113,653
WMG Acquisition Corp.^		5.00			8/1/2023		63,000		63,000		64,260
Total Leisure, Amusement, Entertainment							1,013,000		1,335,385		1,261,361
Machinery Non-Agriculture, Non-Construction, Non-Electronic — 0.4%*:
Novafives SAS+		5.00			6/15/2025		1,000,000		1,091,704		1,083,838
Oil and Gas — 0.9%*:
Citgo Holding, Inc.^		10.75			2/15/2020		1,500,000		1,496,126		1,552,500
EP Energy LLC/Everest Acquisition Finance, Inc.^		8.00			2/15/2025		713,000		630,776		155,077
KCA Deutag UK Finance PLC+^		9.88			4/1/2022		1,000,000		1,014,762		737,500
Total Oil and Gas							3,213,000		3,141,664		2,445,077
Personal Transportation — 0.2%*:
Naviera Armas S.A., 3M EURIBOR + 6.500%+		6.50	#		7/31/2023		250,000		296,567		217,470
Naviera Armas SA, 3 mo. EURIBOR + 4.250%+		4.25	#		11/15/2024		250,000		296,705		198,993
Total Personal Transportation							500,000		593,272		416,463
Retail Stores — 0.8%*:
CBR Fashion Finance BV+		5.13			10/1/2022		200,000		204,047		226,783
eG Global Finance PLC+		4.38			2/7/2025		250,000		279,337		282,996
House of Fraser Funding PLC, 3M GBP LIBOR + 5.750%+††		6.54	#		9/15/2020		300,000		432,945		9,525

See accompanying Notes to the Financial Statements.

94

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Retail Stores (Continued)
Marcolin SpA, 3 mo. EURIBOR + 4.125%+		4.13	# %		2/15/2023		300,000	$	338,980	$	341,089
Maxeda DIY Holding B.V.+		6.13			7/15/2022		100,000		114,070		112,630
Takko Luxembourg 2 SCA+		5.38			11/15/2023		1,200,000		1,306,555		1,146,197
Travelex Financing PLC+		8.00			5/15/2022		100,000		108,750		113,316
Total Retail Stores							2,450,000		2,784,684		2,232,536
Telecommunications — 0.2%*:
Ziggo B.V.+		4.25			1/15/2027		350,000		390,408		421,864
Utilities — 0.4%*:
Viridian Group Finance Co. PLC/Viridian Power & Energy+		4.75			9/15/2024		865,000		1,078,490		1,104,921
Total Corporate Bonds							25,245,794		29,410,190		26,057,801
Total Fixed Income							258,455,200		268,986,824		257,407,206
Total Investments							258,772,632		270,767,809		259,120,620
Other assets and liabilities – 5.3%*											14,515,933
Net Assets – 100.0%											$273,636,553

‡‡ 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	64.3%
United Kingdom	12.4%
Germany	8.4%
Netherlands	3.7%
France	3.2%
Spain	1.5%
Sweden	1.4%
Other (Individually less than 1%)	5.1%
Total	100.0%

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

§ Bank loans are exempt from registration under the Securities Act of 1933, as amended, but contain certain restrictions on resale and cannot be sold publicly. These loans pay interest at rates which adjust periodically. The interest rates shown for bank loans are the current interest rates at June 30, 2019. 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.

See accompanying Notes to the Financial Statements.

95

Barings Global Floating Rate Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

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

†† Illiquid security.

# Variable rate security. The interest rate shown is the rate in effect at June 30, 2019.

A summary of outstanding derivatives at June 30, 2019 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)
7/12/19	Credit Suisse International		EUR	3,048,076	$	3,468,892	$	3,471,489	$	(2,597	)
7/12/19	Morgan Stanley & Co.		GBP	1,723,863		2,190,339		2,200,828		(10,489	)
Net unrealized depreciation on forward foreign currency exchange contracts to buy									$	(13,086	)

Forward Foreign Currency Exchange Contracts to Sell

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
7/12/19	Morgan Stanley & Co.		EUR	56,822,991	$	64,667,955	$	64,578,710	$	(89,245	)
7/12/19	Morgan Stanley & Co.		GBP	12,839,369		16,313,691		16,394,739		81,048
Net unrealized depreciation on forward foreign currency exchange contracts to sell									$	(8,197	)

Currency Legend

EUR	–	Euro
GBP	–	British Pound Sterling

See accompanying Notes to the Financial Statements.

96

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS

June 30, 2019

				SHARES		COST		FAIR VALUE
Equities — 0.8%*:
Common Stocks — 0.8%*:
Retail Stores — 0.3%*:
Maxeda DIY B.V.+¤					18,859,871		$373,737		$428,911
Maxeda DIY B.V.+¤					10,446		–		107,236
Total Retail Stores					18,870,317		373,737		536,147
Mining, Steel, Iron and Non-Precious Metals — 0.1%*:
Boomerang Tube LLC¤					1,769		171,860		147,959
Oil and Gas — 0.4%*:
Fieldwood Energy LLC					3,698		129,430		110,940
Fieldwood Energy LLC					15,071		325,034		452,130
Jupiter Resources, Inc.+					120,272		581,286		315,714
Southcross Energy Holdings LP					11		–		–
Southcross Energy Partners LP					11		2,750		5,775
Total Oil and Gas					139,063		1,038,500		884,559
Healthcare, Education and Childcare — 0.0%*:
MModal, Inc.					4,725		10,631		9,450
Tunstall Group Holdings Ltd.+¤					396		–		–
Tunstall Group Holdings Ltd.+¤					261		–		–
Total Healthcare, Education and Childcare					5,382		10,631		9,450
Diversified/Conglomerate Service — 0.0%*:
Innovation Group¤+					403,550		–		1
Total Common Stocks					19,420,081		1,594,728		1,578,116
	EFFECTIVE INTEREST RATE			SHARES		COST		FAIR VALUE
Preferred Stock — 0.0%*:
Farming and Agriculture — 0.0%*:
Pinnacle Agriculture Holdings A 2¤††		2.32	%		311,577		202,152		28,042
				SHARES		COST		FAIR VALUE
WARRANTS — 0.0%*:
Diversified/Conglomerate Manufacturing — 0.0%*:
Appvion Holdings Corp. (exp. June 13, 2023)¤††					488		–		244
Appvion Holdings Corp. (exp. June 13, 2023)¤††					488		–		61
Total Diversified/Conglomerate Manufacturing					976		–		305
Total Warrants					976		–		305
Total Equities					19,732,634		1,796,880		1,606,463

See accompanying Notes to the Financial Statements.

97

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 92.6%**:
Asset-Backed Securities — 11.2%**:
CDO/CLO — 11.2%*:
Alinea CLO 2018-1 Ltd., 3M LIBOR + 6.000%^		8.59	#%		7/20/2031		1,250,000		$1,250,000		$1,173,799
ALME Loan Funding III Designated Activity Co. 3A ERV, 3M EURIBOR + 5.400%+^		5.40	#		4/15/2030		500,000		523,143		563,243
ALME Loan Funding IV BV 4A ER, 3M EURIBOR + 4.670%+^		4.67	#		1/15/2032		1,000,000		1,144,494		1,075,377
Anchorage Capital CLO Ltd. 2015-6A ER, 3M USD LIBOR + 6.350%^		8.95	#		7/15/2030		500,000		512,786		482,561
Apidos CLO XXIV, 3M USD LIBOR + 5.800%^		8.39	#		10/20/2030		1,000,000		1,000,000		952,132
Ares XLVIII CLO, 3M LIBOR + 5.200%^		7.79	#		7/20/2030		800,000		800,000		727,034
Atlas Senior Loan Fund XI Ltd., 3M LIBOR + 5.7500%^		8.34	#		7/26/2031		1,900,000		1,900,000		1,759,328
Avoca CLO XIV Designated Activity Co. 14X FR, 3M EURIBOR + 6.350%+		6.35	#		1/12/2031		500,000		560,349		509,089
Blackrock European CLO VII DAC 7X E, 3M USD LIBOR + 5.170%+		5.17	#		10/15/2031		725,000		802,087		782,962
BlueMountain CLO Ltd. 2014-1A^¤		Zero Coupon			4/30/2026		250,000		242,827		–
Carbone CLO Ltd. 2017-1A D, 3M USD LIBOR + 5.900%^		8.49	#		1/20/2031		500,000		500,000		470,392
CBAM Ltd. 2017-3A E, 3M USD LIBOR + 6.500%^		9.09	#		10/17/2029		750,000		750,000		728,551
CIFC Funding 2018-III Ltd., 3M LIBOR + 5.500%^		8.10	#		7/18/2031		1,500,000		1,499,999		1,373,655
CIFC Funding 2019-III Ltd., 3M LIBOR + 6.800%^		9.32	#		7/16/2032		750,000		727,574		734,950
CIFC Funding Ltd. 2017-5A D, 3M USD LIBOR + 6.100%^		8.69	#		11/16/2030		500,000		500,000		477,048
Cordatus 3X CLO plc, 3M EURIBOR+ 4.860%+		4.86	#		8/15/2032		1,000,000		1,157,180		1,072,490
Galaxy XXIV CLO Ltd. 2017-24A E, 3M USD LIBOR + 5.500%^		8.10	#		1/15/2031		700,000		700,000		647,293
Madison Park Funding XIII Ltd. 2014-13A^		Zero Coupon			4/19/2030		500,000		422,677		337,709
Madison Park Funding XXVII Ltd., 3M USD LIBOR + 5.200%^		7.59	#		4/20/2030		500,000		500,000		459,653
Madison Park Funding XXVIII Ltd., 3M LIBOR + 7.600%^		10.20	#		7/15/2030		500,000		495,656		457,855
Magnetite CLO LTD., 3M LIBOR + 6.750%^		9.27	#		4/15/2031		500,000		500,000		500,922
Magnetite VII Ltd.^		Zero Coupon			1/15/2028		2,000,000		1,495,849		1,406,771
Neuberger Berman Loan Advisers CLO 28 Ltd., 3M USD LIBOR + 5.600%^		8.19	#		4/20/2030		500,000		500,000		469,318
Oak Hill Credit Partners X Ltd. 2014-10A^		Zero Coupon			12/12/2030		1,000,000		721,764		445,871
RRE 2 Loan Management DAC, 3M EURIBOR + 5.800%+		5.80	#		1/15/2032		1,000,000		1,078,106		1,097,069
Steele Creek CLO Ltd. 2017-1A E, 3M USD LIBOR + 6.200%^		8.80	#		1/15/2030		500,000		500,000		478,625

See accompanying Notes to the Financial Statements.

98

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
CDO/CLO (Continued)
Steele Creek CLO Ltd. 2018-2A E, 3M USD LIBOR + 6.200%^		8.72	# %		8/18/2031		850,000	$	850,000	$	785,426
THL Credit Wind River CLO Ltd. 2017-4A E, 3M USD LIBOR + 5.800%^		8.32	#		11/20/2030		500,000		500,000		473,823
THL Credit Wind River CLO Ltd. 2018-2A E, 3M USD LIBOR + 5.750%^		8.35	#		7/15/2030		1,450,000		1,450,000		1,336,313
Wellfleet CLO 2018-1 Ltd., 3M USD LIBOR + 5.500%^		8.09	#		7/17/2031		1,150,000		1,150,000		1,019,917
Wellfleet CLO Ltd. 2017-3A D, 3M USD LIBOR + 5.550%^		8.14	#		1/17/2031		1,000,000		1,000,000		898,919
Total CDO/CLO							26,075,000		25,734,491		23,698,095
Total Asset-Backed Securities							26,075,000		25,734,491		23,698,095
Bank Loans — 40.1%*§:
Aerospace and Defense — 0.5%*:
TransDigm, Inc., 1M LIBOR + 2.500%		4.83			5/30/2025		994,962		970,808		970,914
Automobile — 0.5%*:
Panther BF Aggregator 2 L P, 1M LIBOR + 3.5000%+		5.90			4/30/2026		1,138,679		1,129,417		1,129,433
Automobiles — 0.2%*:
IAA, Inc., LIBOR + 2.250%		4.57			5/22/2026		452,258		451,127		453,388
Beverage, Food and Tobacco — 0.9%*:
Deoleo S.A., EURIBOR + 3.500%+††		4.50			6/11/2021		500,000		561,839		224,577
IRB Holding Corp., 1M LIBOR + 3.250%		5.64			2/5/2025		1,819,790		1,835,780		1,795,060
Total Beverage, Food and Tobacco							2,319,790		2,397,619		2,019,637
Broadcasting and Entertainment — 4.6%*:
AP NMT Acquisition B.V., EURIBOR + 6.000%+		7.00			8/13/2021		387,032		478,094		439,680
AP NMT Acquisition B.V., 3M LIBOR + 5.750%+		8.35			8/13/2021		1,175,117		1,156,336		1,164,835
AP NMT Acquisition B.V., 3M LIBOR + 9.000%+		11.60			8/13/2022		739,566		729,068		730,935
Charter Communications Operating, LLC, 3M LIBOR + 2.000%		4.33			4/30/2025		1,492,424		1,486,965		1,490,186
CSC Holdings, LLC, 1M LIBOR + 3.000%		5.39			4/15/2027		1,280,059		1,273,732		1,280,379
E.W. Scripps Co. (The), LIBOR + 2.750%		5.15			5/1/2026		439,062		436,890		437,780
iHeartCommunications, Inc., LIBOR + 4.000%		6.58			5/1/2026		2,000,000		2,005,000		2,001,880
Intelsat Jackson Holdings S.A., 1M LIBOR + 3.750%		6.15			11/27/2023		1,000,000		990,831		988,750
Univision Communications, Inc., 1M LIBOR + 2.750%		5.15			3/15/2024		1,429,327		1,416,301		1,359,204
Total Broadcasting and Entertainment							9,942,587		9,973,217		9,893,629

See accompanying Notes to the Financial Statements.

99

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Buildings and Real Estate — 0.7%*:
LSF10 Impala Investments S.a r.l., EURIBOR + 4.750%+		4.75	%		10/10/2025		500,000	$	574,228	$	569,261
SRS Distribution, Inc., 3M LIBOR + 3.250%		5.65			5/23/2025		861,312		848,025		824,887
Total Buildings and Real Estate							1,361,312		1,422,253		1,394,148
Cargo Transport — 1.1%*:
American Airlines, Inc., 1M LIBOR + 2.000%		4.39			12/14/2023		1,000,000		985,369		983,750
American Airlines, Inc., 1M LIBOR + 2.000%		4.40			4/28/2023		1,489,796		1,470,300		1,467,821
Total Cargo Transport							2,489,796		2,455,669		2,451,571
Chemicals, Plastics and Rubber — 1.6%*:
Colouroz Investment 1 GmbH, EURIBOR + 3.0000%+		3.75			9/7/2021		1,337,934		1,576,740		1,331,195
Flint Group GmbH, EURIBOR + 3.000%+		3.75			9/7/2021		283,312		335,819		281,884
Momentive Performance Materials, Inc., LIBOR + 3.250%		5.59			5/19/2024		135,449		134,784		134,095
Novacap S.A., EURIBOR + 3.500%+		3.50			6/22/2023		500,000		577,134		548,890
Platform Specialty Products Corp., 1M LIBOR + 2.250%		4.65			1/30/2026		200,162		199,926		199,349
Solenis Holdings LLC, 3M LIBOR + 4.000%		6.52			6/26/2025		246,119		243,997		242,735
Solenis Holdings LLC, 3M LIBOR + 8.500%		11.02			6/26/2026		68,282		66,279		66,973
Starfruit Finco B.V, 1M LIBOR + 3.250%+		5.67			10/1/2025		513,444		511,137		504,674
Total Chemicals, Plastics and Rubber							3,284,702		3,645,816		3,309,795
Commercial Services — 1.4%*:
Go Daddy Operating Company, LLC, LIBOR + 2.250%		4.40			2/15/2024		1,126,130		1,122,079		1,125,849
Masmovil Holdphone SA, LIBOR + 3.250%+		3.25			5/13/2026		500,000		557,622		567,447
Syniverse Holdings, Inc., 1M LIBOR + 5.000%		7.40			3/9/2023		197,577		196,114		181,277
Syniverse Holdings, Inc., 1M LIBOR + 9.000%		11.40			3/11/2024		153,729		151,921		111,915
Virgin Media Investment Holdings Ltd., LIBOR - GBP + 3.250%+		3.98			11/15/2027		750,000		1,062,532		944,728
Total Commercial Services							2,727,436		3,090,268		2,931,216
Containers, Packaging and Glass — 1.7%*:
Albea Beauty Holdings S.A., 1M LIBOR + 3.000%+		5.52			4/22/2024		204,350		204,146		199,497
Berry Global, Inc., LIBOR + 2.500%		4.82			5/15/2026		1,600,777		1,598,025		1,588,947
BWAY Holding Co., 1M LIBOR + 3.250%		5.85			4/3/2024		1,322,571		1,322,148		1,275,726
ProAmpac PG Borrower LLC, 3M LIBOR + 8.500%		11.02			11/18/2024		500,000		494,943		473,125
Total Containers, Packaging and Glass							3,627,698		3,619,262		3,537,295
Diversified/Conglomerate Manufacturing — 1.0%*:
LTI Holdings, Inc., 1M LIBOR + 3.500%		5.90			9/6/2025		1,004,817		989,997		948,929

See accompanying Notes to the Financial Statements.

100

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Diversified/Conglomerate Manufacturing (Continued)
Triple Point Technology, Inc., 3M LIBOR + 4.250%		6.58	%		7/10/2020		567,467	$	558,845	$	540,983
Xella International GmbH, EURIBOR + 4.000%+		3.75			4/11/2024		500,000		588,325		562,421
Total Diversified/Conglomerate Manufacturing							2,072,284		2,137,167		2,052,333
Diversified/Conglomerate Service — 5.0%*:
Allied Universal Holdco LLC, LIBOR + 4.250%††		6.57			6/26/2026		179,860		178,061		178,961
Almonde, Inc., 3M LIBOR + 3.500%+		5.90			6/13/2024		1,331,835		1,334,888		1,295,955
EAB (Avatar Purchaser), 1M LIBOR + 3.750%		6.38			11/15/2024		242,689		241,755		240,262
Financial & Risk US Holdings, Inc., 1M LIBOR + 3.750%		6.15			10/1/2025		1,492,500		1,439,500		1,446,322
Hyland Software, Inc., 1M LIBOR + 3.500%		5.65			7/1/2024		994,988		984,478		987,525
Innovation Group plc (The), LIBOR + 5.000%¤+††		5.94			4/9/2024		56,983		74,565		72,366
Innovation Group plc (The), LIBOR + 6.000%+,¤,††		6.00			4/9/2023		232,625		261,727		264,519
Innovation Group PLC (The), LIBOR + 8.000%¤+††		8.77			4/9/2024		133,938		42,417		35,210
Kronos, Inc., 3M LIBOR + 3.500%		5.58			11/1/2023		2,000,000		1,981,411		1,994,760
TMF Group Holding B.V., LIBOR + 6.875%+		6.88			5/4/2026		500,000		535,697		531,594
Ultimate Software Group Inc(The), LIBOR + 3.750%		6.08			5/3/2026		247,000		246,396		247,309
Verisure Holding AB, EURIBOR + 3.000%+		3.00			10/21/2022		1,000,000		1,165,587		1,125,422
Vertafore, Inc., 1M LIBOR + 3.250%		5.65			7/2/2025		1,491,764		1,474,413		1,431,467
Vertafore, Inc., 1M LIBOR + 7.250%		9.65			7/2/2026		879,452		871,708		853,437
Total Diversified/Conglomerate Service							10,783,634		10,832,603		10,705,109
Ecological — 0.4%*:
Emerald 3 Ltd., 3M LIBOR + 7.000%		9.40			5/31/2022		196,488		195,756		195,997
GFL Environmental Inc., 1M LIBOR + 3.000%+		5.40			5/31/2025		132,132		131,882		129,867
PHS Group Ltd., 1M LIBOR + 5.250%+		6.25			12/20/2021		467,152		608,138		592,814
Total Ecological							795,772		935,776		918,678
Electronics — 2.7%*:
II-VI, Inc., LIBOR + 3.500%		5.82			6/28/2026		596,932		591,984		587,608
ION Trading Technologies Sarl, EURIBOR + 3.250%		4.25			11/21/2024		1,090,342		1,252,860		1,205,386
ION Trading Technologies Sarl, 3M LIBOR + 4.000%		6.33			11/21/2024		282,941		276,794		273,694
Omnitracs, Inc., 3M LIBOR + 2.750%		5.10			3/21/2025		1,485,000		1,488,076		1,460,869
Renaissance Holding Corp., 1M LIBOR + 3.250%		5.73			5/31/2025		990,000		990,000		958,647
RP Crown Parent LLC, 1M LIBOR + 2.750%		5.15			10/12/2023		724,716		722,493		720,411

See accompanying Notes to the Financial Statements.

101

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Electronics (Continued)
Veritas Bermuda Ltd., 3M LIBOR + 4.500%		6.89	%		1/27/2023		554,394	$	553,053	$	503,461
Total Electronics							5,724,325		5,875,260		5,710,076
Finance — 1.1%*:
NFP Corp., 1M LIBOR + 3.000%		5.40			1/6/2024		952,737		921,455		925,194
Tempo Acquisition LLC, 1M LIBOR + 3.000%		5.40			5/1/2024		1,499,291		1,502,863		1,492,109
Total Finance							2,452,028		2,424,318		2,417,303
Healthcare, Education and Childcare — 4.8%*:
Advanz Pharma Corp., LIBOR + 5.500%+		7.91			9/6/2024		1,822,250		1,802,406		1,747,082
Aenova Holding GmbH, EURIBOR + 4.000%+		5.00			9/29/2020		1,000,000		1,162,193		1,130,936
Aveanna Healthcare, LLC, 1M LIBOR + 5.500%		7.90			3/18/2024		146,071		140,334		140,715
Catalent Pharma Solutions, Inc., LIBOR + 2.250%		4.65			5/17/2026		119,526		119,231		119,426
Change Healthcare Holdings, Inc., 1M LIBOR + 2.750%		5.15			3/1/2024		1,496,094		1,487,895		1,483,571
Endo Luxembourg Finance Co. I S.a r.l., 1M LIBOR + 4.250%		6.65			4/27/2024		662,989		665,608		621,002
Financiere Mendel SAS, EURIBOR + 4.750%+		4.75			3/31/2026		500,000		552,640		572,359
Lifescan Global Corp., 3M LIBOR + 6.000%		8.66			9/28/2024		182,769		177,949		174,088
Ortho-Clinical Diagnostics SA, 3M LIBOR + 3.250%		5.68			6/30/2025		1,201,023		1,201,534		1,153,487
Parexel International Corp., 1M LIBOR + 2.7500%		5.15			9/29/2024		1,408,223		1,399,904		1,347,120
Radiology Partners Holdings, LLC, LIBOR + 4.750%		7.36			7/9/2025		100,864		100,359		100,549
Rodenstock GmbH, LIBOR + 5.250%+		5.25			6/30/2026		500,000		555,411		558,743
Tunstall Group Holdings Ltd., 1M LIBOR + 4.500%+		7.50			10/16/2020		500,313		587,594		567,661
Valeant Pharmaceuticals International, Inc., 1M LIBOR + 3.000%		5.41			5/31/2025		453,601		451,679		453,320
Total Healthcare, Education and Childcare							10,093,723		10,404,737		10,170,059
Home and Office Furnishings, Housewares, and Durable Consumer Products — 0.5%*:
Serta Simmons Bedding LLC, 3M LIBOR + 3.500%		5.91			11/8/2023		1,213,255		1,212,584		781,033
Serta Simmons Bedding LLC, 1M LIBOR + 8.000%		10.39			11/8/2024		474,667		469,865		207,904
Total Home and Office Furnishings, Housewares, and Durable Consumer Products							1,687,922		1,682,449		988,937

See accompanying Notes to the Financial Statements.

102

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Hotels, Motels, Inns and Gaming — 1.0%*:
Caesars Resort Collection LLC, 1M LIBOR + 2.750%		5.15	%		12/23/2024		1,492,424	$	1,481,530	$	1,465,993
Compass IV Ltd., EURIBOR + 4.500%+		4.50			4/30/2025		500,000		598,578		571,393
Total Hotels, Motels, Inns and Gaming							1,992,424		2,080,108		2,037,386
Insurance — 1.8%*:
AssuredPartners, Inc., 1M LIBOR + 3.250%		5.90			10/22/2024		981,530		985,168		970,488
Confie Seguros Holding II Co., 3M LIBOR + 8.500%		11.02			10/31/2025		464,527		455,237		445,250
Hub International Ltd., 2M LIBOR + 2.750%		2.00			4/25/2025		1,298,562		1,295,855		1,265,059
Sedgwick Claims Management Services, Inc., 1M LIBOR + 3.250%		5.65			12/31/2025		995,000		973,944		979,896
York Risk Services Holding Corp., 1M LIBOR + 3.750%		6.15			10/1/2021		183,366		181,303		172,860
Total Insurance							3,922,985		3,891,507		3,833,553
Leisure, Amusement, Entertainment — 1.8%*:
Crown Finance US, Inc., 1M LIBOR + 2.500%		4.65			2/28/2025		1,242,448		1,214,938		1,221,090
Dorna Sports, S.L., 1M LIBOR + 3.000%+		5.20			4/12/2024		400,000		400,000		388,200
Eldorado Resorts LLC, LIBOR + 2.500%		4.69			4/17/2024		856,001		849,643		851,987
Metro-Goldwyn-Mayer, Inc., 1M LIBOR + 4.500%		6.91			7/3/2026		893,847		885,957		863,680
Vue International Bidco PLC, LIBOR + 4.750%+		4.75			6/30/2026		500,000		558,667		569,971
Total Leisure, Amusement, Entertainment							3,892,296		3,909,205		3,894,928
Machinery Non-Agriculture, Non-Construction, Non-Electronic — 1.0%*:
Alison Bidco Sarl, 1M LIBOR + 4.500%+		7.08			8/29/2021		640,344		616,960		577,379
Apex Tool Group LLC, 1M LIBOR + 3.750%		6.15			2/1/2022		181,107		180,510		173,713
Titan Acquisition Ltd., 1M LIBOR + 3.000%+		5.40			3/28/2025		1,481,250		1,482,791		1,412,535
Total Machinery Non-Agriculture, Non-Construction, Non-Electronic							2,302,701		2,280,261		2,163,627
Mining, Steel, Iron and Non-Precious Metals — 0.1%*:
Boomerang Tube, LLC, 3M LIBOR + 3.000%¤††		7.40			10/31/2021		124,368		124,368		124,368
Oil and Gas — 1.4%*:
Fieldwood Energy LLC, 1M LIBOR + 5.250%		7.65			4/11/2022		649,368		596,405		600,055
Fieldwood Energy LLC, 1M LIBOR + 7.250%		9.65			4/11/2022		885,631		407,752		735,074
Gulf Finance LLC, 3M LIBOR + 5.250%		7.65			8/25/2023		1,284,651		1,220,917		1,046,451
KCA Deutag Alpha Ltd., 3M LIBOR + 6.750%+		9.08			2/28/2023		495,000		493,075		370,364
Seadrill Partners Finco LLC, 3M LIBOR + 6.000%		8.33			2/21/2021		235,121		203,067		167,523
Total Oil and Gas							3,549,771		2,921,216		2,919,467

See accompanying Notes to the Financial Statements.

103

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Personal and Non-Durable Consumer Products Mfg. Only — 0.5%*:
Coty Inc., 1M LIBOR + 2.250%		4.67	%		4/7/2025		1,190,977	$	1,146,191	$	1,161,203
Retail Stores — 1.6%*:
Bass Pro Group, LLC, 1M LIBOR + 5.000%		7.40			9/25/2024		994,937		989,051		948,712
EG Finco Ltd., 3M LIBOR + 4.000%+		6.33			2/7/2025		363,072		361,571		356,566
EG Group Ltd., EURIBOR + 4.000%+		4.00			2/6/2025		494,593		591,324		555,760
Kirk Beauty One GmbH, EURIBOR + 3.500%+		3.25			8/12/2022		500,000		516,229		467,632
Kirk Beauty One GmbH, EURIBOR + 3.500%+		3.50			8/13/2022		499,999		513,137		478,292
Thom Europe S.A.S, EURIBOR + 4.250%+		4.25			8/7/2024		500,000		576,557		566,776
Total Retail Stores							3,352,601		3,547,869		3,373,738
Telecommunications — 0.9%*:
Banff Merger Sub, Inc., 3M LIBOR + 4.250%		6.58			10/2/2025		997,494		967,160		942,941
CommScope, Inc., 1M LIBOR + 3.250%		5.65			4/6/2026		1,000,000		1,000,000		996,000
Total Telecommunications							1,997,494		1,967,160		1,938,941
Utilities — 1.3%*:
Calpine Corp., LIBOR + 2.500%		4.83			1/16/2024		1,479,507		1,475,404		1,470,659
EFS Cogen Holdings I LLC, 3M LIBOR + 3.250%		5.58			6/28/2023		447,800		447,568		445,700
Vistra Energy Corp., 1M LIBOR + 2.000%		4.40			12/31/2025		813,832		812,953		812,514
Total Utilities							2,741,139		2,735,925		2,728,873
Total Bank Loans							87,015,664		88,051,576		85,229,605
Corporate Bonds — 41.3%**:
Aerospace and Defense — 1.2%*:
TransDigm, Inc.^		6.25			3/15/2026		954,000		954,000		1,004,085
Triumph Group, Inc.		5.25			6/1/2022		875,000		872,955		857,500
Triumph Group, Inc.		7.75			8/15/2025		750,000		796,535		725,625
Total Aerospace and Defense							2,579,000		2,623,490		2,587,210
Automobile — 1.9%*:
AA Bond Co. Ltd.+		5.50			7/31/2022		1,300,000		1,653,502		1,403,294
Garrett LX I Sarl/Garrett Borrowing LLC+		5.13			10/15/2026		1,150,000		1,255,712		1,257,320
Gates Global LLC/Gates Global Co.^		6.00			7/15/2022		477,000		414,381		477,298
Panther BF Aggregator 2 LP/Panther Finance Co., Inc.		4.38			5/15/2026		200,000		226,830		234,811
RAC Bond Co. PLC+		5.00			11/6/2022		600,000		796,572		682,600
Total Automobile							3,727,000		4,346,997		4,055,323
Automobiles — 0.1%*:
Aston Martin Capital Holdings Ltd.+		5.75			4/15/2022		110,000		134,655		136,901

See accompanying Notes to the Financial Statements.

104

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Beverage, Food and Tobacco — 1.7%*:
Boparan Finance PLC+		4.38	%		7/15/2021		250,000	$	220,748	$	158,330
Boparan Finance PLC+		5.50			7/15/2021		1,300,000		1,721,169		907,763
JBS USA LUX SA/JBS USA Finance, Inc.^		5.75			6/15/2025		344,000		349,877		357,760
JBS USA LUX SA/JBS USA Finance, Inc.^		5.88			7/15/2024		651,000		663,202		669,716
JBS USA LUX SA/JBS USA Finance, Inc.^		6.75			2/15/2028		500,000		500,000		543,125
Sunshine Mid BV+		6.50			5/15/2026		850,000		1,012,951		1,002,017
Total Beverage, Food and Tobacco							3,895,000		4,467,947		3,638,711
Broadcasting and Entertainment — 1.5%*:
CSC Holdings LLC^		7.50			4/1/2028		386,000		386,000		423,751
Entertainment One Ltd.+		4.63			7/15/2026		450,000		566,190		587,478
Intelsat Jackson Holdings SA^		8.50			10/15/2024		500,000		500,000		495,000
Intelsat Jackson Holdings SA^		9.75			7/15/2025		436,000		458,044		444,720
Tele Columbus AG+		3.88			5/2/2025		900,000		956,718		952,071
VTR Finance BV+^		6.88			1/15/2024		224,000		220,067		231,840
Total Broadcasting and Entertainment							2,896,000		3,087,019		3,134,860
Buildings and Real Estate — 0.2%*:
Realogy Group LLC/Realogy Co-Issuer Corp.^		9.38			4/1/2027		500,000		489,343		438,125
Cargo Transport — 1.6%*:
Kenan Advantage Group, Inc.^		7.88			7/31/2023		1,367,000		1,367,000		1,230,300
XPO Logistics, Inc.^		6.13			9/1/2023		520,000		514,788		538,850
XPO Logistics, Inc.^		6.75			8/15/2024		1,466,000		1,467,774		1,563,123
Total Cargo Transport							3,353,000		3,349,562		3,332,273
Chemicals, Plastics and Rubber — 1.0%*:
Consolidated Energy Finance SA^		6.88			6/15/2025		874,000		893,981		895,116
Diversey		5.63			8/15/2025		300,000		315,567		283,138
Monitchem HoldCo 2 SA+		6.88			6/15/2022		200,000		231,193		227,420
Monitchem HoldCo 3 SA+		5.25			6/15/2021		500,000		559,597		569,147
Pinnacle Operating Corp.^		9.00			5/15/2023		453,953		526,484		149,804
Total Chemicals, Plastics and Rubber							2,327,953		2,526,822		2,124,625
Commercial Services — 2.3%*:
Altice Finco S.A.+		9.00			6/15/2023		500,000		593,855		591,201
Altice Luxembourg SA^+		7.75			5/15/2022		200,000		202,344		203,250
CommScope, Inc.^		5.50			3/1/2024		290,000		290,000		297,613
TDC A/S+		6.88			2/23/2023		600,000		848,860		865,788
Telecom Italia SpA/Milano+		3.63			5/25/2026		1,250,000		1,484,498		1,499,551
Wind Tre SpA, 3M EURIBOR + 2.750%+		2.75	#		1/20/2024		350,000		370,036		392,502
Wind Tre SpA+		3.13			1/20/2025		400,000		448,203		453,521
Ziggo Bond Co. BV^+		5.88			1/15/2025		500,000		497,582		505,210
Total Commercial Services							4,090,000		4,735,378		4,808,636

See accompanying Notes to the Financial Statements.

105

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Containers, Packaging and Glass — 1.2%*:
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.+^		4.63	%		5/15/2023		803,000	$	793,126	$	816,049
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.+^		7.25			5/15/2024		300,000		308,702		316,125
BWAY Holding Co.		4.75			4/15/2024		950,000		1,094,812		1,110,816
BWAY Holding Co.^		7.25			4/15/2025		383,000		366,311		369,595
Total Containers, Packaging and Glass							2,436,000		2,562,951		2,612,585
Diversified/Conglomerate Manufacturing — 0.1%*:
Appvion ESC, 3M EURIBOR + 4.125%¤		9.00	#		6/1/2020		500,000		502,816		–
Fabric BC SpA, 3M EURIBOR + 4.125%+		4.13	#		11/30/2024		150,000		170,485		170,565
Total Diversified/Conglomerate Manufacturing							650,000		673,301		170,565
Diversified/Conglomerate Service — 2.8%*:
Algeco Global Finance PLC+		6.50			2/15/2023		750,000		902,389		889,880
Carlson Travel, Inc.^		6.75			12/15/2023		1,337,000		1,354,219		1,353,713
EIG Investors Corp.		10.88			2/1/2024		665,000		703,247		704,900
Iron Mountain UK PLC		3.88			11/15/2025		450,000		597,668		566,240
Verisure Midholding AB+		5.75			12/1/2023		2,050,000		2,399,824		2,409,780
Total Diversified/Conglomerate Service							5,252,000		5,957,347		5,924,513
Electronics — 1.9%*:
TIBCO Software, Inc.^		11.38			12/1/2021		1,881,000		1,999,437		1,998,562
Veritas US, Inc./Veritas Bermuda Ltd.^		7.50			2/1/2023		817,000		855,879		763,895
Veritas US, Inc./Veritas Bermuda Ltd.^		10.50			2/1/2024		1,419,000		1,455,644		1,216,793
Total Electronics							4,117,000		4,310,960		3,979,250
Finance — 4.3%*:
Arrow Global Finance PLC+		5.13			9/15/2024		300,000		408,861		373,841
Cabot Financial Luxembourg SA+		7.50			10/1/2023		650,000		900,476		852,295
Galaxy Bidco Ltd., 3M GBP LIBOR + 4.500%+		5.31	#		11/15/2020		250,000		327,140		313,201
Galaxy Bidco Ltd.+		6.38			11/15/2020		650,000		886,901		821,753
Galaxy Finco Ltd.+		7.88			11/15/2021		1,000,000		1,393,984		1,247,090
Garfunkelux Holdco 2 SA+		11.00			11/1/2023		250,000		345,968		261,384
Garfunkelux Holdco 3 S.A., 3M EURIBOR + 4.500%+		4.50	#		9/1/2023		200,000		213,113		189,839
Garfunkelux Holdco 3 S.A.+		8.50			11/1/2022		1,400,000		1,842,223		1,594,802
Icahn Enterprises LP/Icahn Enterprises Finance Corp.		6.75			2/1/2024		1,162,000		1,162,000		1,207,028
Jerrold Finco PLC+		6.13			1/15/2024		650,000		822,588		838,179
Nexi Capital SpA+		4.13			11/1/2023		425,000		484,394		500,405
Virto Financial, Inc.^		6.75			6/15/2022		921,000		953,917		954,313
Total Finance							7,858,000		9,741,565		9,154,130

See accompanying Notes to the Financial Statements.

106

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Healthcare, Education and Childcare — 4.6%*:
Advanz Pharma Corp.+		8.00	%		9/6/2024		500,000	$	474,606	$	486,250
Bausch Health Americas., Inc.^		8.50			1/31/2027		415,000		421,938		456,301
Bausch Health Companies, Inc.^		5.50			11/1/2025		184,000		184,000		191,820
Bausch Health Cos., Inc.^		6.13			4/15/2025		1,232,000		1,069,544		1,258,143
Bausch Health Cos., Inc.^		9.00			12/15/2025		165,000		163,030		184,354
Constantin Investissement 3 SASU+		5.38			4/15/2025		125,000		141,829		142,848
Cream Tech+		5.25			12/15/2025		650,000		760,635		752,008
Endo Pharmaceutical^		7.50			4/1/2027		708,000		708,000		695,610
Envision Healthcare Corp.^		8.75			10/15/2026		1,492,000		1,430,649		1,040,670
Nidda BondCo GmbH+		7.25			9/30/2025		500,000		591,277		596,010
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA^		6.63			5/15/2022		985,000		940,780		940,675
Recordati+		6.75			10/30/2025		300,000		349,925		370,491
Rossini Sarl, EURIBOR + 6.25%+		6.25	#		10/30/2025		250,000		291,718		291,979
Synlab Unsecured Bondco PLC+		8.25			7/1/2023		750,000		928,438		889,770
Tenet Healthcare Corp.^		6.25			2/1/2027		382,000		382,000		395,370
Teva Pharmaceutical Finance Netherlands III BV+		6.00			4/15/2024		678,000		673,792		639,439
Unilabs Subholding AB+		5.75			5/15/2025		400,000		479,078		462,800
Total Healthcare, Education and Childcare							9,716,000		9,991,239		9,794,538
Home and Office Furnishings, Housewares, and Durable Consumer Products — 0.4%*:
Balta+		7.75			9/15/2022		769,500		931,088		869,407
Hotels, Motels, Inns and Gaming — 1.7%*:
Marriott Ownership Resorts, Inc./LG LLC		5.63			4/15/2023		459,000		463,815		465,885
Travelodge+		8.50			5/15/2023		480,000		672,575		636,555
TVL Finance PLC, 3M LIBOR + 5.370%+††		6.14	#		7/15/2025		400,000		505,440		505,440
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.^		5.50			3/1/2025		1,890,000		1,868,482		1,951,992
Total Hotels, Motels, Inns and Gaming							3,229,000		3,510,312		3,559,872
Insurance — 0.4%*:
Acrisure LLC/Acrisure Finance, Inc.^††		7.00			11/15/2025		500,000		480,241		451,250
Acrisure LLC/Acrisure Finance, Inc.^††		8.13			2/15/2024		271,000		271,000		279,808
USI, Inc.^		6.88			5/1/2025		127,000		127,000		125,730
Total Insurance							898,000		878,241		856,788
Leisure, Amusement, Entertainment — 2.5%*:
AMC Entertainment Holdings, Inc.		6.38			11/15/2024		1,300,000		1,687,160		1,606,227
Center Parks.+		4.88			8/28/2025		500,000		651,329		635,126
Perform Group Financing PLC+		8.50			11/15/2020		850,000		1,162,607		1,092,410
Thomas Cook Group PLC+		6.25			6/15/2022		1,400,000		1,282,295		597,710
Vue International Bidco PLC, 3M EURIBOR + 5.250%+		4.94	#		7/15/2020		200,000		225,054		227,306

See accompanying Notes to the Financial Statements.

107

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Leisure, Amusement, Entertainment (Continued)
Vue International Bidco PLC+		7.88	%		7/15/2020		900,000	$	1,168,728	$	1,143,000
Total Leisure, Amusement, Entertainment							5,150,000		6,177,173		5,301,779
Machinery Non-Agriculture, Non-Construction, Non-Electronic — 0.5%*:
Apex Tool Group LLC/BC Mountain Finance, Inc.^		9.00			2/15/2023		578,000		575,271		515,865
Novafives SAS+		5.00			6/15/2025		550,000		589,362		596,111
Total Machinery Non-Agriculture, Non-Construction, Non-Electronic							1,128,000		1,164,633		1,111,976
Mining, Steel, Iron and Non-Precious Metals — 2.4%*:
First Quantum Minerals Ltd.+^		6.50			3/1/2024		1,606,000		1,555,548		1,501,610
First Quantum Minerals Ltd.+^		7.00			2/15/2021		268,000		269,391		273,360
First Quantum Minerals Ltd.+^		7.50			4/1/2025		859,000		826,684		818,197
Northwest Acquisitions ULC/Dominion Finco, Inc.+^		7.13			11/1/2022		1,500,000		1,528,671		1,035,000
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp.^		7.50			6/15/2025		608,000		600,815		593,560
Warrior Met Coal, Inc.^		8.00			11/1/2024		840,000		851,134		875,700
Total Mining, Steel, Iron and Non-Precious Metals							5,681,000		5,632,243		5,097,427
Oil and Gas — 3.1%*:
Calumet Specialty Products Partners LP/Calumet Finance Corp.		6.50			4/15/2021		500,000		482,008		497,500
Citgo Holding, Inc.^		10.75			2/15/2020		2,363,000		2,408,589		2,445,705
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp.		8.63			6/15/2020		264,000		260,655		194,040
Hilcorp Energy I LP/Hilcorp Finance Co.^		6.25			11/1/2028		1,000,000		1,000,000		1,005,000
Jonah Energy LLC/Jonah Energy Finance Corp.^		7.25			10/15/2025		1,121,000		1,106,740		535,277
KCA Deutag UK Finance PLC+^		9.63			4/1/2023		250,000		250,000		181,875
KCA Deutag UK Finance PLC+^		9.88			4/1/2022		600,000		617,501		442,500
Laredo Petroleum, Inc.		5.63			1/15/2022		341,000		321,002		316,278
PBF Holding Co. LLC/PBF Finance Corp.		7.25			6/15/2025		1,022,000		1,054,741		1,070,545
Total Oil and Gas							7,461,000		7,501,236		6,688,720
Personal Transportation — 0.1%*:
Naviera Armas S.A., 3M EURIBOR + 6.500%+		6.50	#		7/31/2023		250,000		290,685		217,470
Personal, Food and Miscellaneous — 0.3%*:
Ocado Group PLC+		4.00			6/15/2024		540,000		696,906		708,986

See accompanying Notes to the Financial Statements.

108

Barings Global Credit Income Opportunities Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Retail Stores — 1.0%*:
CBR Fashion Finance BV+		5.13	%		10/1/2022		450,000	$	479,533	$	510,262
eG Global Finance PLC+		4.38			2/7/2025		200,000		223,470		226,397
House of Fraser Funding PLC, 3M GBP LIBOR + 5.750%+††		6.54	#		9/15/2020		150,000		216,472		4,762
Takko Luxembourg 2 SCA+		5.38	#		11/15/2023		550,000		616,006		522,557
Travelex Financing PLC+		8.00			5/15/2022		750,000		847,233		849,874
Total Retail Stores							2,100,000		2,382,714		2,113,852
Telecommunications — 1.0%*:
Sprint Capital Corp.		6.88			11/15/2028		800,000		784,431		822,240
Sprint Corp.		7.63			3/1/2026		1,250,000		1,290,343		1,332,500
Total Telecommunications							2,050,000		2,074,774		2,154,740
Utilities — 1.5%*:
Nordex SE+		6.50			2/1/2023		750,000		855,116		861,306
Techem Verwaltungsgesellschaft 674 mbH+		6.00			7/30/2026		1,350,000		1,549,050		1,628,664
Viridian Group Finance Co. PLC/Viridian Power & Energy+		4.75			9/15/2024		600,000		800,451		766,419
Total Utilities							2,700,000		3,204,617		3,256,389
Total Corporate Bonds							85,463,453		93,443,198		87,829,651
Total Fixed Income							198,554,117		207,229,265		196,757,351

	STRIKE PRICE		EXPIRATION DATE		CONTRACTS		NOTIONAL		COST		UNREALIZED VALUE			FAIR VALUE
Purchased Options — 0.1%*:
Put Options Purchased — 0.1%*:
Euro Stoxx 50 Index+		$3,150.00		12/20/2019		296		10,282,122		268,409		(88,674	)		179,735
S&P 500 Index		2,650.00		12/20/2019		22		6,471,872		119,944		(18,964	)		100,980
Total Put Options						318		16,753,994		388,353		(107,638	)		280,715
Total Investments								235,040,745		209,414,498					198,644,529
Other assets and liabilities – 6.5%*															13,846,190
Net Assets – 100.0%															$212,490,719

‡‡ Unless otherwise indicated, all principal amounts are denominated in United States Dollars.

* Calculated as a percentage of net assets applicable to common shareholders.

+ Foreign security.

See accompanying Notes to the Financial Statements.

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June 30, 2019

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

United States	62.6%
United Kingdom	13.1%
Germany	6.3%
Netherlands	3.7%
Ireland	2.7%
France	2.2%
Italy	1.8%
Sweden	1.8%
Canada	1.5%
Other (Individually less than 1%)	4.3%
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.

§ Bank loans are exempt from registration under the Securities Act of 1933, as amended, but contain certain restrictions on resale and cannot be sold publicly. These loans pay interest at rates which adjust periodically. The interest rates shown for bank loans are the current interest rates at June 30, 2019. 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.

# Variable rate security. The interest rate shown is the rate in effect at June 30, 2019.

Forward Foreign Currency Exchange Contracts to Sell

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
7/12/19	Citibank N.A.		EUR	39,467,460	$	44,916,325	$	44,863,392	$	(52,933	)
7/12/19	Citibank N.A.		GBP	16,577,896		21,063,860		21,158,440		94,580
Net unrealized appreciation on forward foreign currency exchange contracts to sell									$	41,647

See accompanying Notes to the Financial Statements.

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June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 97.5%*:
Asset-Backed Securities — 46.1%*:
CDO/CLO — 4.8%*:
Ares XXXIV CLO Ltd., 3M USD LIBOR + 1.500%^		4.08	#%		7/29/2026		1,500,000		$1,498,546		$1,498,187
Avant Loans Funding Trust 2019-A^		3.48			7/15/2022		2,239,211		2,239,081		2,248,815
Bain Capital Credit CLO 2017-1, 3M USD LIBOR + 1.250%^		3.84	#		7/20/2030		900,000		896,861		900,092
BlueMountain CLO 2013-1 Ltd., 3M USD LIBOR + 1.230%^		3.79	#		1/20/2029		2,500,000		2,500,000		2,502,680
Denali Capital CLO Ltd. 2013 1A A1LR, 3M USD LIBOR + 1.050%^		3.64	#		10/26/2027		2,420,000		2,420,000		2,416,525
Elmwood CLO II Ltd., 3M USD LIBOR + 1.450%^		4.00	#		4/20/2031		1,650,000		1,650,000		1,649,888
FCI Funding 2019-1 LLC^		3.63			2/18/2031		747,679		747,553		753,542
Galaxy XX CLO Ltd., 3M USD LIBOR + 1.000%^		3.59	#		4/20/2031		1,200,000		1,200,000		1,187,555
Hertz Vehicle Financing LLC 2018-3^		4.37			7/25/2024		620,000		621,320		647,297
LCM Ltd. Partnership 07/27, 3M USD LIBOR + 1.750%^		4.35	#		7/15/2027		2,000,000		2,000,000		2,005,108
LCM XXIII Ltd. 23A A1, 3M USD LIBOR + 1.400%^		3.99	#		10/20/2029		610,000		610,000		612,179
Madison Park Funding Ltd.		4.27			1/22/2028		1,500,000		1,500,000		1,499,977
Madison Park Funding XXII Ltd. 2016-22A A, 3M USD LIBOR + 1.480%^		4.06	#		10/25/2029		350,000		350,000		350,675
Madison Park Funding XXVI Ltd., 3M USD LIBOR + 1.200%^		3.78	#		7/29/2030		2,000,000		1,997,065		1,999,616
Neuberger Berman CLO XX Ltd. 2015-20A BR, 3M USD LIBOR + 1.250%^		3.85	#		1/15/2028		2,000,000		2,000,000		1,969,696
OCP CLO Ltd. 2015-8A A2AR, 3M USD LIBOR + 1.450%^		4.04	#		4/17/2027		900,000		900,000		898,973
Palmer Square CLO 2015-1 Ltd., 3M USD LIBOR + 1.650%^		4.06	#		5/21/2029		700,000		700,000		699,994
Riserva Clo Ltd., 3M USD LIBOR + 1.700%^		4.04	#		10/18/2028		2,750,000		2,750,000		2,750,000
RR 3 Ltd. Series 2018-3 A A1R2, 3M USD LIBOR + 1.090%^		3.69	#		1/15/2030		570,000		570,000		565,852
Salem Fields CLO Ltd. 2016-2, 3M USD LIBOR + 1.150%^		3.73	#		10/25/2028		2,000,000		1,996,380		2,000,028
Structured Asset Securities Corp. Mortgage Loan Trust 2006-GEL1, 1M USD LIBOR + 0.800%^		3.20	#		11/25/2035		3,060,000		3,070,905		2,984,893
TCI-Symphony CLO Ltd. 2016-1A A, 3M USD LIBOR + 1.480%^		4.08	#		10/13/2029		320,000		320,000		320,857
Treman Park CLO Ltd. 2015-1A ARR, 3M USD LIBOR + 1.070%^		3.66	#		10/20/2028		1,170,000		1,170,000		1,170,002

See accompanying Notes to the Financial Statements.

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June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
CDO/CLO (Continued)
VMC Finance 2018-FL1 LLC, 1M USD LIBOR + 0.820%^		3.21	# %		3/15/2035		476,822	$	476,822	$	477,502
Total CDO/CLO							34,183,712		34,184,533		34,109,933
Other Asset-Backed Securities — 41.3%*:
321 Henderson Receivables II LLC 2006-3A A1, 1M USD LIBOR + 0.200%^		2.59	#		9/15/2041		116,104		112,897		111,394
AASET 2017-1 Trust^		3.97			5/16/2042		2,352,341		2,346,075		2,379,315
AASET US Ltd. 2018-2 A^		4.45			11/18/2038		1,825,545		1,837,273		1,865,360
Access Group, Inc. 2015-1 A, 1M USD LIBOR + 0.700%^		3.10	#		7/25/2056		150,621		147,809		148,546
Access Group, Inc. 2015-1 B, 1M USD LIBOR + 1.500%^		3.90	#		7/25/2058		100,000		86,679		92,616
AccessLex Institute 2002-A A2, 28 Day ARS		3.02	#		9/25/2037		700,000		672,979		696,104
AccessLex Institute 2004-A A3, 28 Day ARS		4.56	#		7/1/2039		1,100,000		1,080,672		1,084,603
Accredited Mortgage Loan Trust 2004-04 A2D, 1M USD LIBOR + 0.700%		3.10	#		1/25/2035		464,715		456,246		465,626
Adams Outdoor Advertising LP^		4.81			11/15/2048		1,150,313		1,165,286		1,223,893
American Credit Acceptance Receivables Trust 2017-4 C^		2.94			1/10/2024		1,790,000		1,789,951		1,790,849
American Credit Acceptance Receivables Trust 2019-1^		3.50			4/14/2025		2,650,000		2,649,534		2,700,154
Arbys Funding LLC 2015-1A A2^		4.97			10/30/2045		77,200		77,200		81,488
Argent Securities, Inc. Asset-Backed Pass-Through Certificates 2004-W10 M1, 1M USD LIBOR + 0.900%		3.30	#		10/25/2034		233,380		213,655		232,751
ARI Fleet Lease Trust 2016-A A3^		2.11			7/15/2024		104,221		104,208		104,261
Ascentium Equipment Receivables 2019-1^		3.47			5/12/2025		683,000		682,780		696,784
Ascentium Equipment Receivables 2019-1^		4.31			4/12/2027		430,000		438,806		439,979
Ascentium Equipment Receivables Trust 2018-2 B^		3.76			5/10/2024		1,418,000		1,417,977		1,476,899
Ascentium Equipment Receivables Trust 2018-2 B^		5.18			7/10/2026		2,723,000		2,733,040		2,828,449
Avant Loans Funding Trust 2018-A^		3.09			6/15/2021		91,042		91,041		91,037
Avis Budget Rental Car Funding AESOP LLC^		3.55			9/22/2025		3,234,000		3,233,319		3,336,149
Avis Budget Rental Car Funding AESOP LLC^		3.70			3/20/2023		344,000		343,988		352,656
Avis Budget Rental Car Funding AESOP LLC^		4.53			3/20/2023		738,000		739,170		750,494
Bank of The West Auto Trust 2019-1^		2.90			4/15/2025		1,062,000		1,061,744		1,064,646
BlueVirgo Trust 2015-1A^		3.00			12/15/2022		11,842		11,814		11,842
BRE Grand Islander Timeshare Issuer 2019-A LLC^		3.78			9/26/2033		1,317,405		1,317,358		1,341,439
BRE Grand Islander Timeshare Issuer LLC 2017-1A A^		2.94			5/25/2029		181,871		181,832		183,111
BRE Grand Islander Timeshare Issuer LLC 2017-1A B^		3.24			5/25/2029		149,776		149,758		149,746

See accompanying Notes to the Financial Statements.

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June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
CAL Funding III Ltd.^		4.34	%		9/25/2043		536,500	$	536,441	$	548,060
Canadian Pacer Auto Receivables Trust 2018-2+^		3.63			1/19/2024		470,000		469,980		486,956
Capital Automotive LLC 2017-1A A1^		3.87			4/15/2047		303,283		303,199		308,923
Carmax Auto Owner Trust 2019-2		3.41			10/15/2025		615,000		614,963		628,071
Castlelake Aircraft Securitiza Clast 2019-1A		3.97			4/15/2039		925,004		925,004		926,566
Castlelake Aircraft Securitiza Clast 2019-1A		5.10			4/15/2039		935,840		945,168		940,615
Castlelake Aircraft Securitization Trust 2018-1^		4.13			6/15/2043		2,172,799		2,173,945		2,190,803
Cazenovia Creek Funding I LLC 2015-1A A^		2.00			12/10/2023		7,393		7,345		7,381
Centex Home Equity Loan Trust 2006-A AV4, 1M USD LIBOR + 0.250%		2.65	#		6/25/2036		75,643		73,997		75,207
Chase Education Loan Trust, 3M USD LIBOR + 0.220%		2.55	#		6/28/2040		693,987		656,564		657,355
CIT Education Loan Trust 2007-1, 3M USD LIBOR + 0.090%^		2.44	#		3/25/2042		1,415,760		1,353,452		1,348,194
CLI Funding V LLC^		3.38			10/18/2029		2,166,794		2,159,933		2,193,325
CLI Funding V LLC 2013-1A^		2.83			3/18/2028		1,708,500		1,677,947		1,709,510
CLI Funding V LLC 2013-2A^		3.22			6/18/2028		809,285		801,448		816,305
CLI Funding V LLC 2014-1A A^		3.29			6/18/2029		658,804		655,800		658,831
CLI Funding VI LLC^		3.71			5/18/2044		1,113,180		1,113,180		1,127,503
CLI Funding VI LLC 2017-1A A^		3.62			5/18/2042		1,550,372		1,553,463		1,575,879
College Ave Student Loans LLC 2018-A, 1M USD LIBOR + 1.200%^		3.60	#		12/26/2047		1,026,327		1,026,327		1,023,165
College Avenue Student Loans LLC^		3.81			12/28/2048		1,351,000		1,350,873		1,350,873
College Loan Corp. Trust I 2005-2 B, 3M USD LIBOR + 0.490%		3.09	#		1/15/2037		156,168		138,815		144,384
Commonbond Student Loan Trust 2016-B A1^		2.73			10/25/2040		1,117,628		1,121,966		1,119,011
Commonbond Student Loan Trust 2017-A-GS^		3.47			5/25/2041		1,456,697		1,436,576		1,474,286
Commonbond Student Loan Trust 2017-A-GS^		5.28			5/25/2041		194,368		194,345		204,627
Commonbond Student Loan Trust 2018-A-GS^		3.82			2/25/2044		391,036		390,951		396,158
Commonbond Student Loan Trust 2018-BGS^		4.12			9/25/2045		430,000		429,944		436,821
Commonbond Student Loan Trust 2018-C-GS^		4.35			2/25/2046		439,000		438,958		444,531
CPS Auto Receivables Trust 2018-A^		2.16			5/17/2021		58,871		58,871		58,838
CPS Auto Receivables Trust 2019-A^		3.18			6/15/2022		757,453		757,424		761,357
CPS Auto Trust^		3.43			7/15/2022		440,000		439,963		443,367
Credit Suisse ABS Repackaging Trust 2013-A B^		2.50			1/25/2030		36,833		35,339		35,761
DB Master Finance LLC^		3.79			5/20/2049		947,000		947,000		984,648
DB Master Finance LLC^		4.02			5/20/2049		1,119,000		1,119,000		1,154,190
DB Master Finance LLC^		4.03			11/20/2047		985,000		952,474		1,014,480
Diamond Resorts Owner Trust 2016-1 A^		3.08			11/20/2028		320,570		320,570		322,465
Diamond Resorts Owner Trust 2018-1^		3.70			1/21/2031		472,837		472,837		478,571
Domino’s Pizza Master Issuer LLC^		4.12			7/25/2048		653,400		653,400		670,897
Domino’s Pizza Master Issuer LLC 2017-1 A^		3.08			7/25/2047		3,640,163		3,573,859		3,626,624
DRB Prime Student Loan Trust 2015-A A2^		3.06			7/25/2031		38,251		37,835		38,850

See accompanying Notes to the Financial Statements.

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June 30, 2019

	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 A3^		2.54	%		4/27/2026		4,365	$	4,365	$	4,365
DRB Prime Student Loan Trust 2015-D A1, 1M USD LIBOR + 1.700%^		4.18	#		1/25/2040		87,458		86,384		88,337
DRB Prime Student Loan Trust 2015-D A2^		3.20			1/25/2040		484,504		484,032		490,323
DRB Prime Student Loan Trust 2016-A A1, 1M USD LIBOR + 2.000%^		4.40	#		4/25/2040		375,496		383,912		381,897
DRB Prime Student Loan Trust 2016-R A1, 1M USD LIBOR + 1.900%^		4.30	#		10/25/2044		605,021		605,021		610,956
DRB Prime Student Loan Trust 2016-R A2^¤		3.07			10/25/2044		1,752,473		1,749,353		1,754,321
Drive Auto Receivables Trust		3.66			11/15/2024		450,000		449,930		455,936
Drive Auto Receivables Trust 2017-1 C		2.84			4/15/2022		178,283		178,268		178,430
Drive Auto Receivables Trust 2017-2 C		2.75			9/15/2023		112,367		112,363		112,439
Drive Auto Receivables Trust 2018-2		3.22			4/15/2022		339,753		339,720		340,327
Drive Auto Receivables Trust 2018-5 A2B, 1M USD LIBOR + 0.320%		2.71	#		7/15/2021		410,845		410,541		410,709
Drive Auto Receivables Trust 2019-1		3.78			4/15/2025		2,625,000		2,624,819		2,679,507
DT Auto Owner Trust 2018-1^		2.59			5/17/2021		109,479		109,478		109,478
DT Auto Owner Trust 2018-1^		3.04			1/18/2022		570,000		569,967		570,901
DT Auto Owner Trust 2019-1^		3.61			11/15/2024		1,460,000		1,459,856		1,484,333
Earnest Student Loan Program 2017-A LLC^		3.59			1/25/2041		796,076		791,316		808,275
Earnest Student Loan Program LLC 2016-C A2^		2.68			7/25/2035		200,359		199,316		200,527
Earnest Student Loan Program LLC 2016-D A2^		2.72			1/25/2041		219,474		219,410		219,457
ECMC Group Student Loan Trust 2016-1A A, 1M USD LIBOR + 1.350%^		3.75	#		7/26/2066		390,375		390,375		393,512
ECMC Group Student Loan Trust 2017-1A A, 1M USD LIBOR + 1.200%^		3.60	#		12/27/2066		1,133,686		1,133,686		1,138,545
ECMC Group Student Loan Trust 2018-1, 1M USD LIBOR + 0.750%^		3.15	#		2/27/2068		1,295,723		1,295,722		1,287,927
ECMC Group Student Loan Trust 2018-2, 1M USD LIBOR + 0.800%^		3.20	#		9/25/2068		1,031,514		1,030,224		1,019,631
EdLinc Student Loan Funding Trust 2017-A A, Prime — 1.150%^		4.35	#		12/1/2047		1,405,400		1,395,894		1,412,260
Education Loan Asset-Backed Trust I 2013-1 A1, 1M USD LIBOR + 0.800%^		3.20	#		6/25/2026		219,680		217,561		219,842
Educational Funding of the South, Inc., 3M USD LIBOR + 0.650%		3.23	#		4/25/2035		1,305,294		1,297,874		1,296,208
EDvestinU Private Education Loan Issue No 1 LLC^		3.58	#		11/25/2038		1,945,209		1,944,871		2,004,610
Elara HGV Timeshare Issuer 2016-A LLC^		3.22			4/25/2028		743,428		736,507		746,761
Elara HGV Timeshare Issuer LLC 2014-A B^		3.02	#**		2/25/2027		15,273		15,172		15,261
Elara HGV Timeshare Issuer LLC 2016-A A^		2.73			4/25/2028		1,078,166		1,059,646		1,075,929
Elara HGV Timeshare Issuer LLC 2017-A A^		2.69			3/25/2030		317,497		317,472		319,377
ELFI Graduate Loan Program LLC 2018-A, 1M USD LIBOR + 0.750%^		3.15	#		8/25/2042		1,646,750		1,645,667		1,641,612

See accompanying Notes to the Financial Statements.

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June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
ELFI Graduate Loan Program LLC 2018-A^		4.00	%		8/25/2042		460,000	$	451,214	$	472,612
Enterprise Fleet Financing LLC 2017-1 A3^		2.60			7/20/2022		240,000		239,965		240,576
Exeter Automobile Receivables Trust 2015-2A C^		3.90			3/15/2021		281,585		283,307		282,243
Exeter Automobile Receivables Trust 2016-3A B^		2.84			8/16/2021		108,996		108,987		109,040
Exeter Automobile Receivables Trust 2017-1A B^		3.00			12/15/2021		249,393		249,364		249,652
Exeter Automobile Receivables Trust 2018-1^		2.75			4/15/2022		468,121		468,121		468,388
Exeter Automobile Receivables Trust 2018-3^		2.90			1/18/2022		436,643		436,622		437,089
Exeter Automobile Receivables Trust 2019-1A B^		3.45			2/15/2023		935,000		934,970		945,980
First Franklin Mortgage Loan Trust 2004-FFH4 M5, 1M USD LIBOR + 1.575%		3.98	#		1/25/2035		178,739		179,455		179,278
First Investors Auto Owner Trust 2016-2A B^		2.21			7/15/2022		520,000		519,985		518,167
First Investors Auto Owner Trust 2017-3A B^		2.72			4/17/2023		560,000		559,971		562,305
First Investors Auto Owner Trust 2018-1^		3.22			1/17/2023		540,000		539,962		544,165
Flagship Credit Auto Trust 2016-3 B^		2.43			6/15/2021		117,523		117,519		117,487
Flagship Credit Auto Trust 2016-4 B^		2.41			10/15/2021		1,426,723		1,427,281		1,426,003
Flagship Credit Auto Trust 2016-4 C^		2.71			11/15/2022		410,000		409,987		410,912
Flagship Credit Auto Trust 2017-1 B^		2.83			3/15/2023		786,647		786,631		786,994
Flagship Credit Auto Trust 2017-4 C^		2.92			11/15/2023		1,140,000		1,139,213		1,139,093
Flagship Credit Auto Trust 2018-1^		3.13			1/17/2023		2,250,000		2,249,647		2,265,478
Flagship Credit Auto Trust 2018-2^		2.97			10/17/2022		505,752		505,752		508,087
Flagship Credit Auto Trust 2019-1^		3.60			2/18/2025		2,175,000		2,176,663		2,232,772
Global SC Finance II SRL 2014-1A A1+^		3.19			7/17/2029		157,583		157,555		157,665
GLS Auto Receivables Trust 2018-3 A^		3.35			8/15/2022		402,356		402,349		404,523
Goal Capital Funding Trust 2010-1 A, 3M USD LIBOR + 0.700%^		3.22	#		8/25/2048		142,526		137,010		143,019
Goal Structured Solution Trust 2015-1 B, 1M USD LIBOR + 1.500%^		3.90	#		9/25/2043		100,000		76,917		98,457
Goodgreen Trust 2016-1 A^		3.23			10/15/2052		872,411		862,162		889,160
Goodgreen Trust 2018-1^		3.93	#		10/15/2053		3,782,292		3,825,187		3,943,508
Goodgreen Trust 2019-1^		3.86			10/15/2054		2,935,361		2,935,886		3,064,127
HERO Funding Trust 2015-1A A^		3.84			9/21/2040		617,483		628,247		639,914
HERO Funding Trust 2016-4A A1^		3.57			9/20/2047		268,250		268,148		278,553
HERO Funding Trust 2017-2A A1^		3.28			9/20/2048		100,977		100,965		102,068
HERO Funding Trust 2017-2A A2^		4.07			9/20/2048		79,339		81,249		82,540
HERO Funding Trust 2017-3A A1^		3.19			9/20/2048		677,123		676,901		688,434
HERO Funding Trust 2018-1^		4.67			9/20/2048		1,069,074		1,090,772		1,126,107
Hertz Fleet Lease Funding LP^		3.44			1/10/2033		2,625,000		2,624,579		2,654,846
Hertz Vehicle Financing II LP^		3.29			7/25/2022		1,000,000		987,994		1,007,553
Hertz Vehicle Financing II LP^		3.29			2/25/2024		2,830,000		2,777,090		2,881,215
Hertz Vehicle Financing II LP^		3.52			3/25/2021		900,000		896,866		905,063
Hertz Vehicle Financing II LP^		3.56			10/25/2021		2,300,000		2,284,459		2,318,953

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Hertz Vehicle Financing II LP^		3.60	%		2/25/2024		1,320,000	$	1,319,627	$	1,345,695
Higher Education Funding I 2004-1 B1, 28 Day ARS^		3.88	#		1/1/2044		950,000		834,169		891,151
Hilton Grand Vacations Trust 2013-A A^		2.28			1/25/2026		23,447		23,189		23,431
Hilton Grand Vacations Trust 2017-AA B^		2.96	#**		12/26/2028		211,575		211,567		212,123
Hilton Grand Vacations Trust 2018-A^		3.54			2/25/2032		350,260		350,252		361,080
Horizon Aircraft Finance I Ltd. 2018-1 A^		4.46			12/15/2038		475,406		475,396		492,876
KDAC Aviation Finance Ltd.^		4.21			12/15/2042		1,540,702		1,536,415		1,579,011
KREF Ltd. 2018-FL1 AS, 1M USD LIBOR + 1.350%^		3.74	#		6/15/2036		2,380,000		2,380,000		2,381,095
Laurel Road Prime Student Loan Trust 2017-B CFX^		3.61			8/25/2042		364,448		364,394		363,973
Laurel Road Prime Student Loan Trust 2017-C B^		2.95			11/25/2042		418,103		417,947		414,625
Lendmark Funding Trust 2017-1A^		2.83			12/22/2025		553,249		552,409		551,740
Lendmark Funding Trust 2017-2A A^		2.80			5/20/2026		680,000		679,948		679,826
Lendmark Funding Trust 2018-1^		3.81			12/21/2026		630,000		629,969		645,955
Mariner Finance Issuance Trust 2017-AA A^		3.62			2/20/2029		282,892		282,845		283,708
Mariner Finance Issuance Trust 2017-BA B^		2.92			12/20/2029		3,360,000		3,345,087		3,363,847
Mariner Finance Issuance Trust 2018-A^		4.20			11/20/2030		1,848,000		1,847,870		1,898,512
Marlette Funding Trust 2017-3A A^		2.36			12/15/2024		33,097		33,095		33,086
Marlette Funding Trust 2018-1^		2.61			3/15/2028		437,870		437,852		437,595
Marlette Funding Trust 2018-2^		3.06			7/17/2028		197,170		197,170		197,388
Marlette Funding Trust 2018-3^		3.20			9/15/2028		584,195		584,149		586,178
Marlette Funding Trust 2019-1^		3.44			4/16/2029		880,254		880,233		887,850
Marlette Funding Trust 2019-2^		3.13			7/16/2029		1,289,000		1,288,875		1,296,214
Marlette Funding Trust 2019-2^		3.53			7/16/2029		976,000		975,812		990,303
Mosaic Solar Loan Trust 2018-2-GS^		4.20			2/22/2044		553,161		553,074		568,698
Mosaic Solar Loans LLC 2017-1A A^		4.45			6/20/2042		82,043		82,020		85,307
MVW Owner Trust 2013-1A A^		2.15			4/22/2030		179,710		178,515		179,057
MVW Owner Trust 2015-1A A^		2.52			12/20/2032		23,301		23,300		23,260
MVW Owner Trust 2017-1A A^		2.42			12/20/2034		66,657		66,647		66,740
Navient Private Education Loan Trust 2017-A, 1M USD LIBOR - 0.900%^		3.29	#		12/16/2058		1,125,000		1,125,000		1,129,780
Navient Private Education Loan Trust 2018-B, 1M USD LIBOR + 0.720%^		3.11	#		12/15/2059		320,000		320,000		316,969
Navient Private Education Refi Loan Trust 2019-A^		3.42			1/15/2043		595,000		594,738		616,082
Navient Student Loan Trust 2015-1 B, 1M USD LIBOR + 1.500%		3.90	#		7/25/2052		1,100,000		1,094,658		1,113,947
Navient Student Loan Trust 2015-2 A3, 1M USD LIBOR + 0.570%		2.97	#		11/26/2040		500,000		492,967		494,859
Navient Student Loan Trust 2016-5A A, 1M USD LIBOR + 1.250%^		3.65	#		6/25/2065		861,983		865,599		871,670

See accompanying Notes to the Financial Statements.

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June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Navient Student Loan Trust 2016-6 A3, 1M USD LIBOR + 1.300%^		3.70	# %		3/25/2066		550,000	$	550,000	$	559,485
Navient Student Loan Trust 2017-1A A3, 1M USD LIBOR + 1.150%^		3.55	#		7/26/2066		1,000,000		1,000,000		1,010,228
Navient Student Loan Trust 2017-5A A, 1M USD LIBOR + 0.800%^		3.20	#		7/26/2066		473,401		472,886		470,019
Navient Student Loan Trust 2018-1A A3, 1M USD LIBOR + 0.720%^		3.12	#		3/25/2067		1,600,000		1,600,000		1,595,038
Navient Student Loan Trust 2018-2, 1M USD LIBOR + 0.750%^		3.15	#		3/25/2067		1,360,000		1,360,000		1,346,346
Navient Student Loan Trust 2018-3, 1M USD LIBOR + 0.800%^		3.20	#		3/25/2067		1,600,000		1,600,000		1,584,599
Navient Student Loan Trust 2019-2, 1M USD LIBOR + 1.000%^		3.40	#		2/27/2068		2,516,000		2,516,000		2,524,783
Navient Student Loan Trust 2019-B, 1M USD LIBOR - 0.980%^		3.37	#		12/15/2059		3,000,000		3,000,000		2,987,794
Navistar Financial Dealer Note Master Owner Trust II, 1M USD LIBOR + 0.950%^		3.35	#		5/28/2024		1,108,000		1,108,000		1,108,277
Navistar Financial Dealer Note Master Owner Trust II, 1M USD LIBOR + 1.050%^		3.45	#		9/25/2023		300,000		300,000		300,693
Navistar Financial Dealer Note Master Owner Trust II, 1M USD LIBOR + 1.450%^		3.83	#		5/28/2024		1,018,000		1,018,000		1,018,096
Navistar Financial Dealer Note Master Owner Trust II, 1M USD LIBOR + 1.550%^		3.95	#		9/25/2023		520,000		520,000		521,041
Nelnet Private Education Loan Trust 2016-A A1A, 1M USD LIBOR + 1.750%^		4.15	#		12/26/2040		188,541		188,541		189,219
Nelnet Private Education Loan Trust 2016-A A1B^		3.60			12/26/2040		135,767		134,924		136,295
Nelnet Student Loan Trust 2005-1, 3M USD LIBOR + 0.110%		2.69	#		10/25/2033		372,353		370,248		367,647
Nelnet Student Loan Trust 2005-2, 3M USD LIBOR + 0.100%		2.44	#		3/23/2037		384,600		382,114		379,318
Nelnet Student Loan Trust 2006-2 B, 3M USD LIBOR + 0.200%		2.78	#		1/25/2038		1,229,226		1,155,401		1,180,553
Nelnet Student Loan Trust 2006-3, 3M USD LIBOR + 0.250%		2.60	#		6/25/2041		1,798,477		1,679,727		1,668,099
Nelnet Student Loan Trust 2007-2, 28 Day ARS^		3.71	#		6/25/2035		2,000,000		1,973,618		1,986,814
Nelnet Student Loan Trust 2012-4, 1M USD LIBOR + 1.000%^		3.40	#		7/26/2049		900,000		868,108		861,826
Nelnet Student Loan Trust 2014-6A A, 1M USD LIBOR + 0.650%^		3.05	#		11/25/2052		2,413,574		2,385,865		2,379,458
Nelnet Student Loan Trust 2018-1A, 1M USD LIBOR + 0.760%^		3.16	#		5/25/2066		3,190,000		3,174,692		3,155,257

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Nelnet Student Loan Trust 2018-3, 1M USD LIBOR + 0.750%^		3.24	# %		9/27/2066		1,300,000	$	1,300,000	$	1,277,453
Nelnet Student Loan Trust 2019-2, 1M USD LIBOR + 0.900%^		3.30	#		6/27/2067		1,142,443		1,142,443		1,138,305
New Residential Advance Receivables Trust Advance Receivables Backed Notes^		4.00			2/15/2051		3,550,000		3,563,849		3,581,138
New Residential Advance Receivables Trust Advance Receivables Backed Notes 2017-T1 AT1^		3.21			2/15/2051		1,080,000		1,067,825		1,091,929
NextGear Floorplan Master Owner Trust 2016-2A A2^		2.19			9/15/2021		762,000		760,706		761,049
NorthStar Student Loan Trust III 2016-1 A, 1M USD LIBOR + 1.250%^		3.65	#		5/27/2036		145,760		139,828		146,929
NovaStar Mortgage Funding Trust 2004-4 M5, 1M USD LIBOR + 1.725%		4.13	#		3/25/2035		337,521		337,463		337,685
NP Ferrum LLC 2015 1A A1+		5.05			3/19/2046		800,000		812,854		850,621
NP SPE II LLC 2017-1A A1^		3.37			10/21/2047		380,119		380,119		389,046
NRZ Advance Receivables Trust 2016-T4 AT4^		3.11			12/15/2050		900,000		900,000		907,337
OneMain Direct Auto Receivables Trust 2017-2A A^		2.31			12/14/2021		499,394		499,357		498,719
Orange Lake Timeshare Trust 2016-A A^		2.61			3/8/2029		1,097,712		1,076,880		1,115,892
Orange Lake Timeshare Trust 2016-A B^		2.91			3/8/2029		444,904		439,132		454,947
Orange Lake Timeshare Trust 2019-A^		4.93			4/9/2038		2,842,757		2,842,171		2,855,808
Oscar US Funding Trust II 2015 1A A4^+		2.44			6/15/2022		76,289		75,134		76,244
Oscar US Funding Trust IX LLC+^		3.63			9/10/2025		480,000		479,903		499,672
Oscar US Funding Trust VI LLC 2017-1A A3+^		2.82			6/10/2021		288,356		288,331		288,621
Oscar US Funding Trust VIII LLC+^		2.91			4/12/2021		275,658		275,638		275,853
Oscar US Funding X LLC^+		3.27			5/11/2026		2,240,000		2,239,633		2,303,721
Oxford Finance Funding LLC 2016-1A A^		3.97			6/17/2024		94,594		94,594		95,422
PHEAA Student Loan Trust 2016-2A A, 1M USD LIBOR + 0.950%^		3.35	#		11/25/2065		508,290		508,290		506,641
Pioneer Aircraft Finance Ltd.^+		3.97			6/15/2044		1,036,000		1,036,000		1,052,356
Popular ABS Mortgage Pass-Through Trust 2006-B A3, 1M USD LIBOR + 0.280%		2.68	#		5/25/2036		40,685		39,204		40,403
Santander Drive Auto Receivables Trust 2016-1 D		4.02			4/15/2022		430,000		435,499		435,140
SBA Tower Trust^		2.88			7/9/2021		880,000		875,746		881,595
SBA Tower Trust^		3.17			4/11/2022		630,000		630,835		639,999
SBA Tower Trust^		3.87			10/15/2049		1,300,000		1,305,042		1,342,362
SBA Tower Trust 2014-1A C^		2.90			10/15/2044		590,000		591,465		589,992
Securitized Equipment Receivables		3.76			10/11/2024		550,000		549,990		551,032
Securitized Equipment Receivables		4.20			10/11/2024		610,000		609,966		612,760

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Sierra Receivables Funding Co LLC 2017-1A A^		2.91	%		3/20/2034		471,475	$	472,847	$	475,994
Sierra Receivables Funding Co LLC 2018-1AB		4.24			4/20/2035		2,236,286		2,262,425		2,286,783
Sierra Timeshare 2014-3 Receivables Funding LLC^		2.80			10/20/2031		418,994		417,307		418,846
Sierra Timeshare 2015-1 Receivables Funding LLC^		3.05			3/22/2032		461,627		460,027		462,003
Sierra Timeshare 2015-2 Receivables Funding LLC^		2.43			6/20/2032		370,154		367,164		369,438
Sierra Timeshare 2016-2 Receivables Funding LLC^		2.78			7/20/2033		306,093		303,421		305,541
Sierra Timeshare 2018-2 Receivables Funding LLC^		3.94			6/20/2035		384,604		384,502		389,839
Sierra Timeshare 2018-3 Receivables Funding LLC^		5.20			9/20/2035		679,773		686,733		688,063
Sierra Timeshare 2019-1 Receivables Funding LLC^		3.77			1/20/2036		1,694,836		1,703,223		1,734,581
Sierra Timeshare 2019-1 Receivables Funding LLC^		4.75			1/20/2036		2,251,090		2,254,147		2,302,350
Sierra Timeshare Receivables Funding LLC 2014-3A A^		2.30			10/20/2031		115,223		114,628		115,147
Sierra Timeshare Receivables Funding LLC 2015 3A B^		3.08			9/20/2032		43,385		43,118		43,593
Sierra Timeshare Receivables Funding LLC 2015-1A A^		2.40			3/22/2032		84,247		83,350		84,003
Sierra Timeshare Receivables Funding LLC 2015-2A B^		3.02			6/20/2032		713,868		710,825		711,307
Sierra Timeshare Receivables Funding LLC 2015-3A A^		2.58			9/20/2032		16,068		16,066		16,051
SLC Student Loan Trust 2005-1 B, 3M USD LIBOR + 0.200%		2.72	#		2/15/2045		659,696		594,804		621,781
SLC Student Loan Trust 2006-1, 3M USD LIBOR + 0.210%		2.62	#		3/15/2055		2,302,524		2,142,886		2,130,006
SLC Student Loan Trust 2006-2 B, 3M USD LIBOR + 0.230%		2.64	#		12/15/2039		1,731,479		1,611,237		1,620,873
SLC Student Loan Trust 2006-2 B, 3M USD LIBOR + 0.230%		2.81	#		1/25/2041		754,616		710,095		696,939
SLM Student Loan Trust 2003-11, 3M USD LIBOR + 0.650%		3.06	#		12/15/2038		976,187		928,084		925,217
SLM Student Loan Trust 2003-14, 3M USD LIBOR + 0.600%^		3.18	#		10/25/2065		2,700,000		2,691,854		2,673,278
SLM Student Loan Trust 2003-14 A6, 3M USD LIBOR + 0.300%		2.88	#		7/25/2025		34,193		33,236		34,032
SLM Student Loan Trust 2003-4 B, 3M USD LIBOR + 0.650%		3.06	#		6/15/2038		377,465		360,914		353,108

See accompanying Notes to the Financial Statements.

119

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
SLM Student Loan Trust 2004-1, 3M USD LIBOR + 0.500%		3.08	# %		7/25/2039		541,855	$	515,216	$	513,232
SLM Student Loan Trust 2004-3A A6A, 3M USD LIBOR + 0.550%^		3.13	#		10/25/2064		1,550,000		1,522,784		1,520,108
SLM Student Loan Trust 2004-8, 3M USD LIBOR + 0.460%		3.04	#		1/25/2040		1,132,673		1,073,184		1,070,468
SLM Student Loan Trust 2005-4, 3M USD LIBOR + 0.170%		2.75	#		7/25/2040		1,750,000		1,662,763		1,651,579
SLM Student Loan Trust 2005-4 B, 3M USD LIBOR + 0.180%		2.76	#		7/25/2055		719,748		642,091		673,486
SLM Student Loan Trust 2005-5, 3M USD LIBOR + 0.250%		2.83	#		10/25/2040		1,452,929		1,362,765		1,358,817
SLM Student Loan Trust 2005-6 B, 3M USD LIBOR + 0.290%		2.87	#		1/25/2044		2,127,264		1,985,152		1,988,709
SLM Student Loan Trust 2005-7, 3M USD LIBOR + 0.750%		3.33	#		1/25/2040		1,400,000		1,395,614		1,382,013
SLM Student Loan Trust 2005-9, 3M USD LIBOR + 0.300%		2.88	#		1/25/2041		834,751		797,549		788,025
SLM Student Loan Trust 2005-9, 3M EURIBOR + 0.600%		3.18	#		1/25/2041		1,243,226		1,228,475		1,226,287
SLM Student Loan Trust 2006-10 A6, 3M USD LIBOR + 0.150%		2.73	#		3/25/2044		2,800,000		2,700,568		2,702,237
SLM Student Loan Trust 2006-10 B, 3M USD LIBOR + 0.220%		2.80	#		3/25/2044		1,237,375		1,169,183		1,164,143
SLM Student Loan Trust 2006-2¤		Zero Coupon			1/25/2041		3,956		1,621,960		1,938,440
SLM Student Loan Trust 2006-2, 3M USD LIBOR + 0.170%		2.75	#		1/25/2041		1,150,454		1,122,431		1,110,432
SLM Student Loan Trust 2006-5 B, 3M USD LIBOR + 0.210%		2.79	#		10/25/2040		569,504		506,899		530,671
SLM Student Loan Trust 2006-7 B, 3M USD LIBOR + 0.200%		2.78	#		1/27/2042		551,975		512,887		507,637
SLM Student Loan Trust 2006-8, 3M USD LIBOR + 0.230%		2.81	#		1/25/2041		930,479		867,424		863,130
SLM Student Loan Trust 2006-9 A5, 3M USD LIBOR + 0.100%		2.68	#		1/26/2026		46,511		45,569		46,441
SLM Student Loan Trust 2007-1 A6, 3M USD LIBOR + 0.140%		2.72	#		1/27/2042		200,000		192,328		190,869
SMB Private Education Loan Trust 2014-A^		4.00			9/15/2042		1,250,000		1,271,721		1,311,103
SMB Private Education Loan Trust 2014-A A2B, 1M USD LIBOR + 1.150%^		3.54	#		5/15/2026		359,354		361,459		361,389
SMB Private Education Loan Trust 2015-A A2B, 1M USD LIBOR + 1.000%^		3.39	#		6/15/2027		57,242		56,412		57,341
SMB Private Education Loan Trust 2015-A A3, 1M USD LIBOR + 1.500%^		3.89	#		2/17/2032		900,000		918,693		912,880

See accompanying Notes to the Financial Statements.

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June 30, 2019

	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^		4.50	%		9/17/2046		1,710,000	$	1,754,527	$	1,845,019
SMB Private Education Loan Trust 2015-C A3, 1M USD LIBOR + 1.950%^		4.34	#		8/16/2032		700,000		728,471		716,309
SMB Private Education Loan Trust 2016-B A2B, 1M USD LIBOR + 1.450%^		3.84	#		2/17/2032		92,621		92,621		93,663
SMB Private Education Loan Trust 2016-C A2B, 1M USD LIBOR + 1.100%^		3.49	#		9/15/2034		222,887		222,887		223,856
SMB Private Education Loan Trust 2017-B A2B, 1M USD LIBOR + 0.750%^		3.14	#		10/15/2035		670,000		670,000		668,743
SMB Private Education Loan Trust 2018-B, 1M USD LIBOR + 0.720%^		3.11	#		1/15/2037		2,800,000		2,783,615		2,778,574
SMB Private Education Loan Trust 2018-C, 1M USD LIBOR + 0.75%^		3.14	#		11/15/2035		1,800,000		1,790,938		1,792,837
SMB Private Education Loan Trust 2019-A, 1M USD LIBOR + 0.75%^		3.26	#		7/15/2036		1,715,000		1,715,000		1,707,845
SMB Private Education Loan Trust 2019-B, 1M USD LIBOR + 1.000%^		3.39	#		6/15/2037		1,800,000		1,800,000		1,800,158
SoFi Alternative Trust 2019-C^¤		Zero Coupon			1/25/2045		4,460,000		4,617,317		4,617,317
SoFi Consumer Loan Program 2018-3 Trust^		3.20			8/25/2027		269,628		269,628		270,502
SoFi Consumer Loan Program LLC 2016-1A A^		3.26			8/25/2025		328,246		329,195		331,209
SoFi Consumer Loan Program LLC 2016-2A A^		3.09			10/27/2025		87,940		87,930		88,162
SoFi Consumer Loan Program LLC 2016-3 A^		3.05			12/26/2025		87,473		87,471		87,862
SoFi Consumer Loan Program LLC 2016-5 A^		3.06			9/25/2028		534,999		533,526		538,463
SoFi Consumer Loan Program LLC 2017-2 A^		3.28			2/25/2026		248,117		247,799		249,809
SoFi Consumer Loan Program LLC 2017-3 A^		2.77			5/25/2026		399,603		399,603		400,160
SoFi Consumer Loan Program Trust 2019-3^		3.89			5/25/2028		2,566,000		2,565,259		2,598,419
SoFi Consumer Loan Program Trust 2015-1 A^		3.28			9/15/2023		15,342		15,348		15,345
SoFi Professional Loan Program 2018-A LLC^¤		Zero Coupon			2/25/2042		1,372,500		1,005,379		1,059,158
SoFi Professional Loan Program 2018-B Trust^¤		Zero Coupon			8/26/2047		1,265,700		702,045		743,203
SoFi Professional Loan Program 2018-D Trust^¤		Zero Coupon			2/25/2048		1,887,200		668,720		650,140
SoFi Professional Loan Program 2019-A LLC^¤		Zero Coupon			6/15/2048		3,522,900		1,046,902		1,017,931
SoFi Professional Loan Program 2019-A LLC^		4.11			6/15/2048		870,000		876,628		922,140

See accompanying Notes to the Financial Statements.

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June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
SoFi Professional Loan Program LLC 2015-A RC^¤		Zero Coupon			3/25/2033		300	$	844,125	$	266,625
SoFi Professional Loan Program LLC 2015-C A2^		2.51	%		8/25/2033		24,949		24,837		25,009
SoFi Professional Loan Program LLC 2016 A A1, 1M USD LIBOR + 1.750%^		4.15	#		8/25/2036		78,211		77,568		79,510
SoFi Professional Loan Program LLC 2016-B A1, 1M USD LIBOR + 1.200%^		3.60	#		6/25/2033		269,100		271,970		271,929
SoFi Professional Loan Program LLC 2016-D A1, 1M USD LIBOR + 0.950%^		3.35	#		1/25/2039		52,505		52,505		52,608
SoFi Professional Loan Program LLC 2017-D R1^		Zero Coupon			9/25/2040		1,233,700		732,123		707,416
Spirit Master Funding LLC^		3.50			1/20/2045		2,989,685		2,988,054		2,987,159
Springleaf Funding Trust 2016-AA A^		2.90			11/15/2029		828,794		828,687		829,618
Store Master Funding I-VII A3^		4.40			10/20/2048		1,893,667		1,913,336		1,996,129
Taco Bell Funding LLC 2016-1A A23^		4.97			5/25/2046		1,200,500		1,240,455		1,243,174
Taco Bell Funding LLC 2018-1A A2I^		4.32			11/25/2048		2,119,350		2,119,350		2,195,572
TAL Advantage LLC 2017-1A A^		4.50			4/20/2042		562,925		569,404		573,644
TAL Advantage V LLC^		3.33			5/20/2039		1,224,265		1,216,435		1,232,955
Tesla Auto Lease Trust 2018-A^		2.32			12/20/2019		106,020		106,020		105,975
Tesla Auto Lease Trust 2018-A^		2.75			2/20/2020		275,000		274,993		274,957
Tesla Auto Lease Trust 2018-B A^		3.71			8/20/2021		440,341		440,315		446,836
Textainer Marine Containers VII Ltd.+^		4.11			7/20/2043		700,500		692,392		707,798
TLF National Tax Lien Trust 2017-1^		3.09			12/15/2029		2,160,954		2,148,918		2,159,333
TPG Real Estate Finance 2018-FL-1 Issuer Ltd., 1M USD LIBOR + 0.750%^		3.14	#		2/15/2035		426,188		425,543		426,325
Trafigura Securitisation Finance PLC 2017-1, 1M USD LIBOR + 1.700%+^		4.17	#		12/15/2020		900,000		901,551		905,225
Trafigura Securitisation Finance plc 2018-1, 1M USD LIBOR + 0.730%+^		3.12	#		3/15/2022		1,820,000		1,813,844		1,809,799
Trafigura Securitisation Finance plc 2018-1+^		4.29			3/15/2022		1,800,000		1,799,905		1,843,461
Trinity Rail Leasing 2019 LLC^		3.82			4/17/2049		2,272,622		2,271,489		2,334,255
Trinity Rail Leasing LP^		3.82			6/17/2048		899,819		899,494		940,780
TRIP Rail Master Funding LLC 2011-1A A2^		6.02			7/15/2041		1,248,118		1,329,718		1,320,118
TRIP Rail Master Funding LLC 2017-1A A1^		2.71			8/15/2047		158,279		158,277		158,176
Triton Container Finance V LLC^		3.95			3/20/2043		306,250		306,048		316,499
Upstart Securitization Trust 2019-1 A		3.45			4/20/2026		849,699		849,669		852,417
VSE 2018-A Voi Mortgage LLC^		4.02			2/20/2036		370,635		370,588		380,387
VSE VOI Mortgage LLC 2016-A A^		2.54			7/20/2033		329,926		329,897		329,608
Wachovia Student Loan Trust 2005-1 B, 3M USD LIBOR + 0.300%		2.88	#		10/25/2040		627,975		577,790		576,955
Welk Resorts LLC 2017-AA B^		3.41			6/15/2033		250,571		250,533		250,690
Westgate Resorts LLC 2015-2A A^		3.20			7/20/2028		64,823		64,758		64,726
Westgate Resorts LLC 2017-1A A^		3.05			12/20/2030		271,262		271,262		271,913
Westgate Resorts LLC 2018-1^		3.38			12/20/2031		567,532		566,604		573,564

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Willis Engine Structured Trust IV^		4.75	%		9/15/2043		1,188,393	$	1,204,982	$	1,240,677
Wingstop Funding 2018-1 LLC^		4.97			12/5/2048		1,097,250		1,113,047		1,146,439
Total Other Asset-Backed Securities							297,139,354		292,564,045		295,594,080
Total Asset-Backed Securities							331,323,066		326,748,578		329,704,013
Corporate Bonds — 34.6%*:
Advertising — 0.1%*:
Interpublic Group of Cos., Inc. (The)		3.75			10/1/2021		820,000		822,685		841,491
Aerospace/Defense — 0.3%*:
Harris Corp.		2.70			4/27/2020		2,288,000		2,285,216		2,290,347
Agriculture — 1.4%*:
BAT Capital Corp.+		3.22			8/15/2024		1,200,000		1,182,723		1,207,881
Bunge Ltd. Finance Corp.		3.00			9/25/2022		1,840,000		1,819,058		1,848,746
Bunge Ltd. Finance Corp.		3.50			11/24/2020		1,520,000		1,532,219		1,534,168
Imperial Brands Finance PLC+^		2.95			7/21/2020		1,829,000		1,820,680		1,833,941
Imperial Brands Finance plc^+		3.50			2/11/2023		1,347,000		1,352,219		1,372,007
Reynolds American, Inc.		4.00			6/12/2022		2,170,000		2,182,342		2,252,968
Total Agriculture							9,906,000		9,889,241		10,049,711
Auto Manufacturers — 0.9%*:
Ford Motor Credit Co. LLC, 3M USD LIBOR + 0.810%		3.41	#		4/5/2021		1,135,000		1,135,000		1,120,102
Ford Motor Credit Co. LLC, 3M USD LIBOR + 1.235%		3.75	#		2/15/2023		985,000		985,000		955,968
Ford Motor Credit Co. LLC		5.09			1/7/2021		350,000		350,387		360,657
General Motors Financial Co., Inc.		3.25			1/5/2023		3,440,000		3,370,536		3,452,487
Nissan Motor Acceptance Corp.+^		1.90			9/14/2021		670,000		667,500		657,741
Total Auto Manufacturers							6,580,000		6,508,423		6,546,955
Auto Parts&Equipment — 0.0%*:
Lear Corp.		5.25			1/15/2025		300,000		318,107		310,819
Beverages — 1.1%*:
Anheuser-Busch InBev Worldwide, Inc.+		3.50			1/12/2024		3,860,000		3,822,812		4,031,708
Keurig Dr Pepper, Inc.		4.06			5/25/2023		2,555,000		2,573,827		2,682,436
Molson Coors Brewing Co.		2.10			7/15/2021		325,000		323,766		322,834
Molson Coors Brewing Co.		3.50			5/1/2022		1,089,000		1,081,095		1,117,998
Total Beverages							7,829,000		7,801,500		8,154,976
Biotechnology — 0.1%*:
Celgene Corp.		4.00			8/15/2023		569,000		578,221		601,308

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Chemicals — 1.9%*:
CF Industries, Inc.		7.13	%		5/1/2020		151,000	$	156,226	$	155,907
DowDuPont, Inc.		4.21			11/15/2023		1,745,000		1,804,412		1,867,905
Huntsman International LLC		5.13			11/15/2022		3,780,000		3,866,466		3,996,514
Incitec Pivot Finance LLC+^		6.00			12/10/2019		1,443,000		1,463,267		1,462,141
RPM International, Inc.		3.45			11/15/2022		1,155,000		1,162,232		1,176,073
RPM International, Inc.		6.13			10/15/2019		1,205,000		1,217,353		1,216,600
Sherwin-Williams Co. (The)		2.75			6/1/2022		1,845,000		1,836,938		1,863,933
Syngenta Finance NV+^		3.70			4/24/2020		1,390,000		1,387,766		1,399,731
Syngenta Finance NV+^		3.93			4/23/2021		500,000		501,520		509,073
Total Chemicals							13,214,000		13,396,180		13,647,877
Commercial Banks — 6.7%*:
Banco Santander SA+		3.50			4/11/2022		2,400,000		2,409,215		2,462,033
Bank of America Corp.		2.82	#**		7/21/2023		8,645,000		8,540,052		8,731,414
Barclays PLC, 3M USD LIBOR + 1.380%+		3.90	#		5/16/2024		1,235,000		1,227,994		1,216,802
Citigroup, Inc.		3.14	#**		1/24/2023		3,940,000		3,916,331		4,007,350
Discover Bank		3.35			2/6/2023		1,917,000		1,911,425		1,961,828
Discover Bank		4.20			8/8/2023		1,935,000		1,982,054		2,053,429
First Horizon National Corp.		3.50			12/15/2020		2,170,000		2,177,352		2,196,014
Goldman Sachs Group, Inc. (The)		3.20			2/23/2023		8,595,000		8,492,442		8,796,070
JPMorgan Chase & Co.		4.50			1/24/2022		3,745,000		3,885,097		3,946,232
Macquarie Bank Ltd.+^		2.85			1/15/2021		130,000		131,554		130,779
Mitsubishi UFJ Financial Group, Inc.+		2.67			7/25/2022		3,295,000		3,236,928		3,304,132
Morgan Stanley MTN		3.75			2/25/2023		4,500,000		4,579,008		4,700,780
Sumitomo Mitsui Financial Group, Inc.+		2.06			7/14/2021		682,000		678,950		679,183
Sumitomo Mitsui Financial Group, Inc.+		2.85			1/11/2022		580,000		582,951		586,394
Sumitomo Mitsui Financial Group, Inc.+		3.75			7/19/2023		900,000		910,337		945,012
SVB Financial Group		5.38			9/15/2020		200,000		206,040		206,727
Synchrony Bank		3.00			6/15/2022		1,680,000		1,624,527		1,692,504
Total Commercial Banks							46,549,000		46,492,257		47,616,683
Construction Materials — 0.8%*:
Holcim US Finance Sarl & Cie SCS+^		6.00			12/30/2019		1,990,000		2,023,740		2,017,381
Martin Marietta Materials, Inc., 3M USD LIBOR + 0.500%		2.89	#		12/20/2019		445,000		445,000		444,993
Martin Marietta Materials, Inc., 3M USD LIBOR + 0.650%		3.17	#		5/22/2020		530,000		530,000		530,019
Masco Corp.		3.50			4/1/2021		590,000		593,152		598,769
Masco Corp.		7.13			3/15/2020		124,000		128,030		127,562
Standard Industries, Inc.^		5.50			2/15/2023		2,060,000		2,097,527		2,116,650
Total Construction Materials							5,739,000		5,817,449		5,835,374
Diversified Financial Services — 2.5%*:
AerCap Ireland Capital DAC/AerCap Global Aviation Trust+		3.50			5/26/2022		500,000		500,147		509,266

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Diversified Financial Services (Continued)
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust+		3.95	%		2/1/2022		3,030,000	$	3,041,712	$	3,117,411
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust+		4.50			5/15/2021		300,000		309,197		309,361
Aircastle Ltd.		5.00			4/1/2023		3,721,000		3,872,113		3,936,784
Ameriprise Financial, Inc.		3.00			3/22/2022		495,000		493,795		504,084
Ameriprise Financial, Inc.		3.70			10/15/2024		450,000		455,713		477,142
Ameriprise Financial, Inc.		4.00			10/15/2023		294,000		302,934		312,767
Antares Holdings LP^		6.00			8/15/2023		1,260,000		1,259,945		1,280,696
Athene Global Funding^		4.00			1/25/2022		3,883,000		3,926,679		4,017,144
Brookfield Finance LLC+		4.00			4/1/2024		1,805,000		1,860,841		1,897,106
Genpact Luxembourg Sarl+		3.70			4/1/2022		1,575,000		1,577,466		1,587,201
Total Diversified Financial Services							17,313,000		17,600,542		17,948,962
Electric — 0.8%*:
Ameren Corp.		2.70			11/15/2020		760,000		763,809		762,474
EDP Finance BV+^		4.13			1/15/2020		981,000		988,751		983,158
Enel Finance International NV+^		2.88			5/25/2022		1,050,000		1,048,118		1,058,317
Entergy Corp.		4.00			7/15/2022		750,000		770,421		780,244
Entergy Texas, Inc.		2.55			6/1/2021		460,000		459,948		459,488
Puget Energy, Inc.		6.00			9/1/2021		1,275,000		1,350,688		1,362,817
Puget Energy, Inc.		6.50			12/15/2020		321,000		338,619		338,731
Total Electric							5,597,000		5,720,354		5,745,229
Electronics — 0.1%*:
FLIR Systems, Inc.		3.13			6/15/2021		480,000		484,610		484,693
Tech Data Corp.		3.70			2/15/2022		260,000		259,785		264,466
Total Electronics							740,000		744,395		749,159
Food — 0.3%*:
McCormick & Co., Inc.		2.70			8/15/2022		1,980,000		1,928,830		1,998,154
Healthcare-Products — 0.7%*:
Becton Dickinson and Co., 3M USD LIBOR + 0.875%		3.21	#		12/29/2020		1,826,000		1,825,145		1,826,270
CVS Health Corp.		2.13			6/1/2021		1,815,000		1,805,752		1,802,955
CVS Health Corp.		3.70			3/9/2023		1,170,000		1,164,525		1,209,951
Total Healthcare-Products							4,811,000		4,795,422		4,839,176
Healthcare-Services — 0.1%*:
Cigna Corp.		4.00			2/15/2022		942,000		972,937		973,655
Home Builders — 0.4%*:
Lennar Corp.		4.50			11/15/2019		1,090,000		1,095,043		1,094,087
Lennar Corp.		4.75			4/1/2021		1,600,000		1,623,612		1,642,000
Total Home Builders							2,690,000		2,718,655		2,736,087

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Household Products/Wares — 0.4%*:
Church & Dwight Co., Inc.		2.88	%		10/1/2022		2,940,000	$	2,901,216	$	2,979,378
Housewares — 0.3%*:
Newell Brands, Inc.		3.85			4/1/2023		2,040,000		2,036,407		2,069,954
Insurance — 1.7%*:
American International Group, Inc.		3.30			3/1/2021		102,000		102,960		103,376
AmTrust Financial Services, Inc.		6.13			8/15/2023		780,000		776,481		767,325
CNA Financial Corp.		5.75			8/15/2021		1,191,000		1,253,386		1,273,255
Enstar Group Ltd.+		4.50			3/10/2022		1,720,000		1,731,016		1,761,807
Jackson National Life Global Funding^		2.50			6/27/2022		2,475,000		2,463,230		2,484,944
Lincoln National Corp.		4.00			9/1/2023		472,000		480,278		499,337
Lincoln National Corp.		4.20			3/15/2022		725,000		754,374		758,853
Lincoln National Corp.		6.25			2/15/2020		400,000		408,131		408,746
Reinsurance Group of America, Inc.		5.00			6/1/2021		1,429,000		1,485,136		1,497,406
Trinity Acquisition PLC		3.50			9/15/2021		2,316,000		2,319,329		2,356,762
Willis Towers Watson PLC		5.75			3/15/2021		370,000		384,449		388,564
Total Insurance							11,980,000		12,158,770		12,300,375
Investment Company Security — 0.5%*:
Ares Capital Corp.		3.88			1/15/2020		1,207,000		1,213,102		1,212,173
FS KKR Capital Corp.		4.00			7/15/2019		853,000		853,131		853,157
TCP Capital Corp.		4.13			8/11/2022		1,140,000		1,136,804		1,148,866
Total Investment Company Security							3,200,000		3,203,037		3,214,196
IT Services — 0.6%*:
Dell International LLC/EMC Corp.^		4.00			7/15/2024		629,000		642,775		645,455
Dell International LLC/EMC Corp.^		4.42			6/15/2021		1,227,000		1,243,553		1,264,350
Leidos Holdings, Inc.		4.45			12/1/2020		2,275,000		2,304,507		2,315,814
Total IT Services							4,131,000		4,190,835		4,225,619
Lodging — 0.2%*:
Marriott International, Inc.		2.30			1/15/2022		300,000		299,418		299,010
Marriott International, Inc.		2.88			3/1/2021		1,345,000		1,354,590		1,353,946
Total Lodging							1,645,000		1,654,008		1,652,956
Machinery-Diversified — 0.9%*:
CNH Industrial Capital LLC		3.38			7/15/2019		945,000		945,200		945,219
CNH Industrial Capital LLC		3.88			10/15/2021		1,110,000		1,120,573		1,131,645
CNH Industrial NV+		4.50			8/15/2023		900,000		912,252		943,830
Wabtec Corp.		4.40			3/15/2024		3,325,000		3,304,492		3,520,230
Total Machinery-Diversified							6,280,000		6,282,517		6,540,924
Media — 0.9%*:
Charter Communications Operating LLC/Charter Communications Operating Capital		3.58			7/23/2020		1,130,000		1,137,143		1,140,130

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Media (Continued)
Discovery Communications LLC		2.95	%		3/20/2023		1,445,000	$	1,416,502	$	1,458,173
Sirius XM Radio, Inc.^		3.88			8/1/2022		3,698,000		3,694,591		3,707,245
Total Media							6,273,000		6,248,236		6,305,548
Mining — 1.0%*:
Glencore Finance Canada Ltd.+^		4.25			10/25/2022		484,000		501,536		506,091
Glencore Funding LLC+^		3.00			10/27/2022		730,000		728,530		734,234
Glencore Funding LLC+^		4.13			5/30/2023		980,000		976,342		1,018,877
Kinross Gold Corp.		5.13			9/1/2021		990,000		1,026,710		1,019,700
Kinross Gold Corp.+		5.95			3/15/2024		2,170,000		2,234,173		2,371,115
Newcrest Finance Pty Ltd.+^		4.20			10/1/2022		1,645,000		1,689,628		1,718,507
Total Mining							6,999,000		7,156,919		7,368,524
Office/Business Equip — 0.2%*:
Pitney Bowes, Inc.		3.88			9/15/2020		350,000		346,222		349,464
Pitney Bowes, Inc.		3.88			10/1/2021		1,065,000		1,055,892		1,043,700
Total Office/Business Equip							1,415,000		1,402,114		1,393,164
Oil and Gas — 0.6%*:
Antero Resources Corp.		5.38			11/1/2021		480,000		487,065		474,000
Continental Resources, Inc.		5.00			9/15/2022		1,438,000		1,450,062		1,449,800
EQT Corp.		3.00			10/1/2022		2,195,000		2,155,587		2,177,973
Total Oil and Gas							4,113,000		4,092,714		4,101,773
Packaging and Containers — 0.4%*:
Graphic Packaging International, Inc.		4.75			4/15/2021		2,696,000		2,754,890		2,743,180
Pharmaceuticals — 2.0%*:
AbbVie, Inc.		2.30			5/14/2021		150,000		149,433		149,093
Bayer US Finance II LLC, 3M USD LIBOR + 1.010%^		3.42	#		12/15/2023		3,085,000		3,046,641		3,029,382
Cardinal Health, Inc., 3M USD LIBOR + 0.770%		3.18	#		6/15/2022		2,995,000		2,994,685		3,003,026
Express Scripts Holding Co.		3.30			2/25/2021		1,590,000		1,602,490		1,611,110
Express Scripts Holding Co.		4.75			11/15/2021		950,000		993,061		997,460
Shire Acquisitions Investments Ireland DAC		2.40			9/23/2021		630,000		626,870		629,226
Shire Acquisitions Investments Ireland DAC		2.88			9/23/2023		1,070,000		1,025,101		1,080,460
Teva Pharmaceutical Finance Netherlands III B.V.+		2.20			7/21/2021		3,890,000		3,780,084		3,690,637
Total Pharmaceuticals							14,360,000		14,218,365		14,190,394
Pipelines — 0.8%*:
Energy Transfer Partners LP		4.20			9/15/2023		3,475,000		3,487,367		3,643,188
EnLink Midstream Partners LP		4.40			4/1/2024		1,720,000		1,718,394		1,739,316
Total Pipelines							5,195,000		5,205,761		5,382,504

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Real Estate Investment Trusts — 1.1%*:
American Tower Corp.		2.25	%		1/15/2022		330,000	$	329,768	$	328,223
American Tower Corp.		3.00			6/15/2023		2,750,000		2,723,873		2,776,673
American Tower Corp.		3.30			2/15/2021		530,000		533,325		536,585
Crown Castle International Corp.		3.40			2/15/2021		1,672,000		1,685,065		1,694,840
Healthcare Trust of America Holdings LP		2.95			7/1/2022		708,000		702,788		713,044
VEREIT Operating Partnership LP		4.60			2/6/2024		1,940,000		2,027,633		2,060,016
Total REITS							7,930,000		8,002,452		8,109,381
Retail — 1.6%*:
Advance Auto Parts, Inc.		4.50			12/1/2023		1,187,000		1,213,792		1,273,654
Dollar Tree, Inc.		3.70			5/15/2023		3,820,000		3,776,324		3,944,161
O’Reilly Automotive, Inc.		3.80			9/1/2022		284,000		284,582		294,930
O’Reilly Automotive, Inc.		3.85			6/15/2023		2,389,000		2,397,796		2,502,754
QVC, Inc.		4.38			3/15/2023		3,260,000		3,203,643		3,309,113
Total Retail							10,940,000		10,876,137		11,324,612
Semiconductors — 0.7%*:
Broadcom Corp./Broadcom Cayman Finance Ltd.		3.00			1/15/2022		1,785,000		1,781,964		1,789,638
Microchip Technology, Inc.		3.92			6/1/2021		1,435,000		1,435,980		1,460,752
NXP BV/NXP Funding LLC^		4.13			6/1/2021		1,670,000		1,686,266		1,708,577
Total Semiconductors							4,890,000		4,904,210		4,958,967
Telecommunications — 0.6%*:
Sprint Communications, Inc.		9.25			4/15/2022		1,005,000		1,147,293		1,160,775
Telefonaktiebolaget LM Ericsson+		4.13			5/15/2022		2,740,000		2,738,017		2,831,379
Total Telecommunications							3,745,000		3,885,310		3,992,154
Transportation — 0.9%*:
Penske Truck Leasing Co. LP/PTL Finance Corp.^		2.70			3/14/2023		410,000		404,010		409,831
Penske Truck Leasing Co. LP/PTL Finance Corp.^		3.30			4/1/2021		240,000		242,973		242,970
Penske Truck Leasing Co. LP/PTL Finance Corp.^		3.38			2/1/2022		830,000		833,897		846,134
Penske Truck Leasing Co. LP/PTL Finance Corp.^		4.88			7/11/2022		2,040,000		2,109,482		2,168,595
Ryder System, Inc.		2.50			9/1/2022		26,000		25,138		26,050
Ryder System, Inc.		3.40			3/1/2023		330,000		326,652		339,045
Ryder System, Inc.		3.75			6/9/2023		1,235,000		1,234,188		1,285,184
Ryder System, Inc.		3.88			12/1/2023		392,000		402,386		411,046
Ryder System, Inc. MTN		2.25			9/1/2021		635,000		632,645		632,979
Total Transportation							6,138,000		6,211,371		6,361,834

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Trucking and Leasing — 0.8%*:
DAE Funding LLC+^		4.00	%		8/1/2020		276,000	$	276,000	$	276,000
GATX Corp.		2.50			7/30/2019		250,000		250,085		249,981
GATX Corp.		2.60			3/30/2020		685,000		683,372		684,381
Park Aerospace Holdings Ltd.+^		5.25			8/15/2022		4,535,000		4,646,871		4,788,053
Total Trucking and Leasing							5,746,000		5,856,328		5,998,415
Venture Capital — 0.2%*:
Hercules Capital, Inc.		4.63			10/23/2022		1,625,000		1,618,841		1,598,616
Total Corporate Bonds							242,148,000		243,250,852		247,698,431
Mortgage-Backed Securities — 9.2%*:
Angel Oak Mortgage Trust 2019-3^		3.24	#@		5/25/2059		3,900,000		3,899,955		3,919,810
Angel Oak Mortgage Trust LLC^		3.90	#@		11/25/2047		2,250,000		2,250,000		2,284,633
BAMLL Commercial Mortgage Securities Trust 2018-DSNY, 1M USD LIBOR + 1.350%^		3.74	#		9/15/2034		270,000		270,000		267,474
BHMS, 1M USD LIBOR + 1.500%^		3.89	#		7/15/2035		1,800,000		1,800,000		1,799,976
BHMS 2018-ATLS, 1M USD LIBOR + 1.250%^		3.64	#		7/15/2035		2,750,000		2,747,282		2,750,824
BX Commercial Mortgage Trust 2018-IND, 1M USD LIBOR + 1.700%^		4.09	#		11/15/2035		3,021,100		3,031,131		3,036,209
CAMB Commercial Mortgage Trust 2019-LIFE, 1M USD LIBOR + 2.150%^		4.54	#		12/15/2037		1,499,283		1,499,283		1,512,434
COMM 2015-CCRE22 Mortgage Trust		3.93	#@		3/10/2048		1,650,000		1,640,280		1,709,621
COMM 2015-DC1 Mortgage Trust		3.72			2/10/2048		1,700,000		1,680,719		1,766,354
COMM 2015-DC1 Mortgage Trust		4.04	#@		2/10/2048		1,087,775		1,110,990		1,127,292
COMM Mortgage Trust 2014-UBS2 B		4.70			3/10/2047		600,000		642,562		638,464
Connecticut Avenue Securities Trust 2019-R03, 1M USD LIBOR + 2.150%^		4.55	#		9/25/2031		240,000		240,000		241,255
Credit Suisse Mortgage Capital Certificates 2019-ICE4, 1M USD LIBOR + 1.600%^		3.99	#		5/15/2036		960,000		960,000		962,704
Deephave Residential Mortgage Trust 2019-2^		3.92	#@		4/25/2059		672,000		672,000		687,102
Deephaven Residential Mortgage Trust 2018-1^		2.98	#@		12/26/2057		705,757		697,436		707,561
Deephaven Residential Mortgage Trust 2018-1^		3.03	#@		12/26/2057		603,608		603,599		603,512
Deephaven Residential Mortgage Trust 2018-2^		3.68	#@		4/25/2058		1,117,829		1,117,817		1,136,152
Deephaven Residential Mortgage Trust 2018-3^		3.96	#@		8/25/2058		1,189,387		1,187,844		1,203,600
Deephaven Residential Mortgage Trust 2018-4^		4.29	#@		10/25/2058		1,665,425		1,665,425		1,689,500
GS Mortgage Securities Trust 2016-GS2		4.68	#		5/10/2049		1,000,000		1,051,050		1,076,405
GS Mortgage Securities Trust 2016-GS3		3.14			10/10/2049		1,000,000		949,036		1,009,839

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Mortgage-Backed Securities (Continued)
JP Morgan Chase Commercial Mortgage Securities Trust 2013-LC11		3.96	#@ %		4/15/2046		1,015,000	$	1,002,572	$	1,033,760
JP Morgan Chase Commercial Mortgage Securities Trust 2018-LAQ, 1M USD LIBOR + 1.000%^		3.39	#		6/15/2032		3,926,206		3,917,451		3,929,794
JP Morgan Mortgage Trust 2017-6 A5^		3.50	#@		12/25/2048		925,641		937,590		941,226
JP Morgan Mortgage Trust 2018-1^		3.50	#@		6/25/2048		683,102		688,606		692,898
JP Morgan Mortgage Trust 2018-3^		3.50	#@		9/25/2048		1,056,360		1,053,137		1,068,191
JP Morgan Mortgage Trust 2018-4^		3.50	#@		10/25/2048		2,287,193		2,270,478		2,320,086
KNDL 2019-KNSQ Mortgage Trust, 1M USD LIBOR + 1.800%^		4.19	#		5/15/2036		865,000		865,000		864,991
Morgan Stanley Bank of America Merrill Lynch Trust 2013-C7		3.77			2/15/2046		1,340,000		1,371,720		1,379,576
Morgan Stanley Capital I Trust 2012-STAR^		4.06			8/5/2034		1,300,000		1,300,498		1,334,624
MSCG Trust 2018-SELF, 1M USD LIBOR + 1.180%^		3.57	#		10/15/2037		165,000		165,000		165,103
New Residential Mortgage Loan Trust 2016-4A A1^		3.75	#@		11/25/2056		357,175		367,658		368,439
New Residential Mortgage Loan Trust 2019-A1^		3.60	#@		4/25/2049		776,551		776,551		794,237
New Residential Mortgage Loan Trust 2019-A3^		3.75	#@		4/25/2049		2,653,852		2,653,852		2,714,085
New Residential Mortgage Loan Trust 2019-NQM1^		3.93	#@		1/25/2049		2,889,598		2,889,740		2,950,981
PNMAC GMSR Issuer Trust 2018-GT1, 1M USD LIBOR + 2.850%^		5.34	#		2/25/2023		470,000		470,000		470,752
PSMC Trust^		3.50	#@		2/25/2048		1,098,527		1,097,188		1,115,321
PSMC Trust 2018-2^		3.50	#@		6/25/2048		1,008,604		992,403		1,024,629
Sequoia Mortgage Trust 2015-1^		2.50	#@		1/25/2045		719,838		708,943		721,591
Sequoia Mortgage Trust 2018-3^		3.50	#@		3/25/2048		1,221,274		1,219,415		1,238,782
Sequoia Mortgage Trust 2018-5^		3.50	#@		5/25/2048		906,223		896,394		921,074
Sequoia Mortgage Trust 2018-6^		4.00	#@		7/25/2048		2,242,877		2,269,310		2,294,408
Sequoia Mortgage Trust 2018-7^		4.00	#@		9/25/2048		610,120		613,124		624,127
Sequoia Mortgage Trust 2018-CH1^		4.00	#@		2/25/2048		758,402		771,459		775,837
Sequoia Mortgage Trust 2018-CH2^		4.00	#@		6/25/2048		1,318,681		1,332,045		1,337,207
Sequoia Mortgage Trust 2018-CH3^		4.00	#@		8/25/2048		884,490		892,006		905,769
Sequoia Mortgage Trust 2019-1^		4.00	#@		2/25/2049		784,659		791,956		802,671
Shellpoint Co-Originator Trust 2016-1 2A3^		3.00	#@		10/25/2031		694,333		700,827		698,147
TIAA Bank Mortgage Loan Trust 2018-2^		3.50	#@		7/25/2048		496,424		491,707		503,530
Velocity Commercial Capital Loan Trust 2016-2 AFX		3.00	#@		10/25/2046		183,959		183,959		185,133
Wells Fargo Mortgage Backed Securities 2019-1 Trust^		4.00	#@		11/25/2048		1,746,762		1,759,532		1,788,570
Total Mortgage-Backed Securities							65,068,015		65,166,530		66,096,260

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
U.S. Treasury & Government Agencies — 7.6%*:
Federal Home Loan Mortgage Corp., 1M USD LIBOR + 0.480%		2.87	# %		10/15/2040		315,294	$	315,030	$	316,162
Federal Home Loan Mortgage Corp.		3.00			5/15/2039		473,179		477,197		478,469
Federal Home Loan Mortgage Corp.		3.00			8/15/2040		729,689		740,099		746,109
Federal Home Loan Mortgage Corp.		3.00			3/15/2041		602,071		609,867		611,167
Federal National Mortgage Association		3.00			4/25/2040		973,215		984,059		992,372
Federal National Mortgage Association		3.00			1/25/2041		484,535		490,482		490,494
Federal National Mortgage Association, 1M USD LIBOR + 0.680%		3.08	#		10/25/2030		766,052		766,201		765,621
U.S. Treasury Bonds		8.00			11/15/2021		13,000,000		14,869,060		14,865,195
U.S. Treasury Bonds		8.75			5/15/2020		33,000,000		34,801,623		34,937,461
Total U.S. Treasury & Government Agencies							50,344,035		54,053,618		54,203,050
Total Fixed Income							688,883,116		689,219,578		697,701,754

COUNTERPARTY		STRIKE PRICE		EXPIRATION DATE		CONTRACTS		NOTIONAL		COST		UNREALIZED VALUE			FAIR VALUE
Purchased Options — 0.5%*:
Call Options Purchased — 0.2%*:
OTC — BCM Swaption	JPMorgan Chase Bank N.A.		$2.44		12/13/2032		11,190,000		11,190,000		561,458		117,078			678,536
OTC — BCM Swaption	JPMorgan Chase Bank N.A.		2.61		1/31/2033		14,590,000		14,590,000		698,861		286,866			985,727
Total Call Options Purchased							25,780,000		25,780,000		1,260,319		403,944			1,664,263
Put Options 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		(135,697	)		1,007,791
OTC — BCM Swaption	JPMorgan Chase Bank N.A.		3.11		1/31/2033		29,090,000		29,090,000		1,390,502		(222,622	)		1,167,880
Total Put Options							51,880,000		51,880,000		2,533,990		(358,319	)		2,175,671

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Short-Term Investments — 3.5%*:
Commercial Paper — 3.5%*:
Chemicals — 0.4%*:
DowDuPont, Inc.		2.74	%		8/5/2019		2,600,000		2,593,200		2,593,200
Diversified Financial Services* — 0.6%*:
CRH America Finance Inc.+		2.80			8/1/2019		1,600,000		1,596,211		1,596,211
General Electric Co.		2.82			8/16/2019		2,600,000		2,590,831		2,590,831
Total Diversified Financial Services							4,200,000		4,187,042		4,187,042

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Short-Term Investments (Continued)
Lodging — 0.7%*:
Marriott International, Inc.		2.63	%		8/14/2019		5,000,000	$	4,984,233	$	4,984,233
Media — 0.9%*:
Cox Enterprises, Inc.		2.57			7/1/2019		6,800,000		6,800,000		6,800,000
Oil and Gas — 0.3%*:
FMC Technologies, Inc.		2.67			7/15/2019		2,000,000		1,997,955		1,997,955
Utilities — 0.6%*:
Mondelez International, Inc.		2.66			7/10/2019		1,000,000		999,345		999,345
VW Credit Inc.		2.70			7/25/2019		1,570,000		1,567,226		1,567,226
VW Credit Inc.		2.71			10/15/2019		2,000,000		1,984,395		1,984,395
Total Utilities							4,570,000		4,550,966		4,550,966
Total Commercial Paper							25,170,000		25,113,396		25,113,396
Total Short-Term Investments							25,170,000		25,113,396		25,113,396
Total Investments							791,713,116		718,127,283		726,655,084
Other assets and liabilities – (1.5%)*											(10,921,807	)
Net Assets – 100.0%											$715,733,277

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	91.3%
Ireland	1.9%
Japan	1.3%
Netherlands	1.0%
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.

¤ 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 June 30, 2019.

@ 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.

See accompanying Notes to the Financial Statements.

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June 30, 2019

A summary of outstanding derivatives at June 30, 2019 is as follows:

Futures

TYPE	EXPIRATION DATE	CONTRACTS		NOTIONAL AMOUNT			POSITION		FAIR VALUE		UNREALIZED DEPRECIATION
Short Futures
90 Day Euro Futures	09/16/19		7		(1,704,037	)		Short		$    (1,714,913)	$	(10,876	)
90 Day Euro Futures	12/16/19		8		(1,946,870	)		Short		(1,961,800)		(14,930	)
90 Day Euro Futures	03/16/20		6		(1,461,278	)		Short		(1,474,350)		(13,072	)
90 Day Euro Futures	06/15/20		6		(1,462,140	)		Short		(1,475,700)		(13,560	)
90 Day Euro Futures	09/14/20		6		(1,462,778	)		Short		(1,476,675)		(13,897	)
90 Day Euro Futures	12/14/20		5		(1,218,919	)		Short		(1,230,563)		(11,644	)
90 Day Euro Futures	03/15/21		5		(1,219,356	)		Short		(1,230,874)		(11,518	)
90 Day Euro Futures	09/13/21		9		(2,195,179	)		Short		(2,214,450)		(19,271	)
90 Day Euro Futures	03/14/22		8		(1,950,670	)		Short		(1,967,200)		(16,530	)
90 Day Euro Futures	09/19/22		7		(1,706,137	)		Short		(1,719,988)		(13,851	)
90 Day Euro Futures	03/13/23		6		(1,461,503	)		Short		(1,473,300)		(11,797	)
90 Day Euro Futures	12/18/23		8		(1,946,870	)		Short		(1,961,900)		(15,030	)
90 Day Euro Futures	12/16/24		22		(5,347,293	)		Short		(5,386,150)		(38,857	)
U.S. 10-Year Ultra Bond	09/19/19		74		(9,948,755	)		Short		(10,221,250)		(272,495	)
U.S. 2-Year Treasury Note	09/30/19		752		(160,710,054	)		Short		(161,815,125)		(1,105,071	)
U.S. 5-Year Treasury Note	09/30/19		1,280		(149,352,679	)		Short		(151,240,000)		(1,887,321	)
Total Short Futures											$	(3,469,720	)

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 DEPRECIATION

3M LIBOR

Receive

2.50

%

6/13/2043

1Y/6M

2,300,000

CME

(13,411

)

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	$	496		$	(23,033	)	$	(23,529	)
CMBX.NA.BBB-.6†+		3.00	%		1M		5/11/2063	Goldman Sachs & Co.		290,000		290,000		(20,924	)		(29,041	)		(8,117	)
Total OTC Credit Default Swaps														(20,428	)		(52,074	)		(31,646	)

(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

See accompanying Notes to the Financial Statements.

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June 30, 2019

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.

134

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SCHEDULE OF INVESTMENTS

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 97.8%*:
Asset-Backed Securities — 56.4%*:
CDO/CLO — 37.4%*:
AIMCO CLO 10 Ltd., 3M USD LIBOR + 3.550%^		5.88	#%		7/22/2032		500,000		$500,000		$499,999
Allegro CLO X Ltd., 3M USD LIBOR + 2.750%^		5.25	#		4/20/2032		500,000		500,000		499,971
Allegro CLO X Ltd., 3M USD LIBOR + 3.800%^		6.30	#		4/20/2032		500,000		500,000		499,959
Anchorage Capital CLO Ltd., 3M USD LIBOR + 2.850%^		5.17	#		7/15/2032		500,000		500,000		499,999
Ares CLO Ltd. 2019-53A C, 3M USD LIBOR + 2.650%^		5.17	#		4/24/2031		500,000		500,000		499,949
Avery Point VII CLO Ltd., 3M USD LIBOR + 3.600%^		5.91	#		1/15/2028		500,000		500,000		500,000
Bain Capital Credit CLO Ltd. 2017-2, 3M USD LIBOR + 2.500%^		5.08	#		7/25/2030		750,000		750,000		749,952
Ballyrock CLO 2016-1 Ltd., 3M USD LIBOR + 3.500%^		6.10	#		10/15/2028		500,000		500,000		500,634
Ballyrock CLO Ltd. 2019-1, 3M USD LIBOR + 3.700%^		6.02	#		7/15/2032		500,000		500,000		499,999
Carlyle US Clo 2017-2 Ltd., 3M USD LIBOR + 2.400%^		4.99	#		7/20/2031		500,000		496,694		500,001
CBAM Ltd. 2019-10, 3M USD LIBOR + 2.050%^		4.63	#		4/20/2032		500,000		500,000		499,945
CBAM Ltd. 2019-10, 3M USD LIBOR + 2.750%^		5.33	#		4/20/2032		500,000		500,000		500,190
Crestline Denali CLO XIV Ltd., 3M USD LIBOR + 1.800%^		4.39	#		10/23/2031		250,000		250,000		246,648
Dryden 50 Senior Loan Fund, 3M USD LIBOR + 2.250%^		4.85	#		7/15/2030		500,000		495,183		498,392
Eaton Vance CLO Ltd. 2019-1, 3M USD LIBOR + 1.950%^		4.47	#		4/15/2031		500,000		500,000		499,963
Eaton Vance CLO Ltd. 2019-1, 3M USD LIBOR + 3.750%^		6.27	#		4/15/2031		300,000		300,000		300,835
Elmwood CLO II Ltd., 3M USD LIBOR + 2.900%^		5.45	#		4/20/2031		750,000		750,000		751,877
Highbridge Loan Management Ltd. 12-2018, 3M USD LIBOR + 1.850%^		4.45	#		7/18/2031		500,000		479,124		484,748
Horizon Aircraft Finance I Ltd.^		5.27			12/15/2038		239,288		242,315		244,952
Horizon Aircraft Finance II Ltd.^¤		4.70			7/15/2039		300,000		299,990		299,990
Kayne CLO 4 Ltd., 3M USD LIBOR + 2.100%^		4.68	#		4/25/2032		500,000		500,000		499,936
KKR Financial CLO Ltd. 25 B1, 3M USD LIBOR + 2.000%^		4.53	#		4/15/2032		500,000		500,000		499,962
KKR Financial CLO Ltd. 25 C, 3M USD LIBOR + 2.750%^		5.28	#		4/15/2032		500,000		500,000		500,471
KREF Ltd. 2018-FL1, 1M USD LIBOR + 2.550%^		4.94	#		6/15/2036		420,000		423,347		420,283
Madison Park Funding Ltd. 2019 34A D, 3M USD LIBOR + 3.700%^		6.28	#		4/25/2031		500,000		500,000		501,641
Neuberger Berman Loan Advisers CLO 31 Ltd., 3M USD LIBOR + 1.950%^		4.47	#		4/20/2031		625,000		625,000		624,960
Octagon Investment Partners 42 Ltd., 3M USD LIBOR + 1.950%^		4.47	#		4/15/2031		500,000		500,000		499,961

See accompanying Notes to the Financial Statements.

135

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June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
CDO/CLO (Continued)
OHA Credit Funding 2 Ltd., 3M USD LIBOR + 4.000%^		6.59	# %		4/21/2031		500,000	$	500,149	$	500,718
OHA Credit Partners XV Ltd., 3M USD LIBOR + 1.370%^		3.96	#		1/20/2030		500,000		488,840		491,336
Riserva CLO Ltd., 3M USD LIBOR + 3.450%^¤		5.79	#		10/18/2028		500,000		500,000		500,000
Rockford Tower CLO Ltd. 2018-2, 3M USD LIBOR + 1.800%^		4.39	#		10/20/2031		272,500		270,481		270,331
TICP CLO VI Ltd. 2016-2, 3M USD LIBOR + 3.300%^		5.69	#		1/15/2029		500,000		500,000		499,512
Verde CLO, 3M USD LIBOR + 1.900%^		4.48	#		4/15/2032		500,000		500,000		499,947
Total CDO/CLO							15,906,788		15,871,123		15,887,061
Other Asset-Backed Securities — 19.0%*:
Aaset 2019-1 Trust^		3.84			5/15/2039		325,000		325,000		324,999
Access Group, Inc. 2015-1 B, 1M USD LIBOR + 1.500%^		3.90	#		7/25/2058		100,000		86,679		92,616
AccessLex Institute 2004-1 B, 3M USD LIBOR + 0.570%		2.91	#		9/22/2037		52,200		50,215		50,124
AccessLex Institute 2004-A A3, 28 Day ARS		4.56	#		7/1/2039		100,000		98,192		98,600
AccessLex Institute 2006-1 B, 3M USD LIBOR + 0.450%		2.97	#		8/25/2037		74,807		66,092		72,032
Adams Outdoor Advertising LP^		4.81			11/15/2048		198,330		205,828		211,016
Arbys Funding LLC 2015-1A A2^		4.97			10/30/2045		38,600		38,600		40,744
Ascentium Equipment Receivables 2019-1^		4.31			4/12/2027		220,000		219,959		225,105
Ascentium Equipment Receivables Trust 2018-2 B^		5.18			7/10/2026		81,000		80,973		84,137
Blackbird Capital Aircraft Lease Securitization Ltd. 2016-1^		5.68			12/16/2041		212,240		220,088		222,369
Castlelake Aircraft Securitiza Clast 2019-1A		5.10			4/15/2039		295,528		298,474		297,036
CLI Funding VI LLC^		4.64			5/18/2044		198,077		198,045		202,544
College Avenue Student Loans LLC 2017, 1M USD LIBOR + 1.650%^		4.05	#		11/26/2046		81,320		82,563		82,408
College Loan Corp. Trust I 2005-2 B, 3M USD LIBOR + 0.490%		3.09	#		1/15/2037		81,988		72,878		75,802
College Loan Corp. Trust I 2017-1 B2, 28 day ARS		2.19	#		1/25/2047		45,000		38,717		40,303
Credit Suisse ABS Repackaging Trust 2013-A B^		2.50			1/25/2030		32,229		30,812		31,291
EdLinc Student Loan Funding Trust 2017-A A, Prime - 1.150%^		4.35	#		12/1/2047		72,072		71,584		72,424
EDvestinU Private Education Loan Issue No 1 LLC^		4.49			11/25/2043		277,000		276,805		290,408
Hertz Vehicle Financing II LP^		5.31			10/25/2023		310,000		319,741		326,024
Labrador Aviation Finance Ltd. 2016-1A^		4.30			1/15/2042		212,240		212,824		218,675

See accompanying Notes to the Financial Statements.

136

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June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Navient Student Loan Trust 2015-2, 1M USD LIBOR + 1.500%		3.90	# %		8/25/2050		200,000	$	198,563	$	199,239
Navient Student Loan Trust 2018-1B, 1M USD LIBOR + 1.200%^		3.60	#		3/25/2067		100,000		95,818		98,962
Nelnet Private Education Loan Trust 2016-A A1B^		3.60			12/26/2040		37,713		37,479		37,860
Nelnet Student Loan Trust 2006-2 B, 3M USD LIBOR + 0.200%		2.78	#		1/25/2038		226,563		212,397		217,592
Nelnet Student Loan Trust 2006-3, 3M USD LIBOR + 0.250%		2.60	#		6/25/2041		134,886		125,979		125,107
Nelnet Student Loan Trust 2015-3, 1M USD LIBOR + 1.500%^		3.90	#		6/25/2054		375,000		371,747		368,204
Pioneer Aircraft Finance Ltd.^+		4.95			6/15/2044		330,000		329,988		335,199
SLC Student Loan Trust 2005-1 B, 3M USD LIBOR + 0.200%		2.72	#		2/15/2045		81,923		70,854		77,215
SLM Student Loan Trust 2002-7 A11, 28 day ARS		2.24	#		3/15/2028		50,000		49,518		49,997
SLM Student Loan Trust 2002-7 B, 28 day ARS		5.67	#		12/15/2039		80,000		80,058		80,000
SLM Student Loan Trust 2003-14, 3M USD LIBOR + 0.550%		3.13	#		10/25/2065		188,562		179,185		178,327
SLM Student Loan Trust 2003-2 A9, 28 day ARS		3.63	#		9/15/2028		100,000		99,796		100,000
SLM Student Loan Trust 2003-4 B, 3M USD LIBOR + 0.650%		3.06	#		6/15/2038		57,294		52,841		53,597
SLM Student Loan Trust 2004-1, 3M USD LIBOR + 0.500%		3.08	#		7/25/2039		176,605		163,375		167,275
SLM Student Loan Trust 2005-4 B, 3M USD LIBOR + 0.180%		2.76	#		7/25/2055		96,456		83,121		90,256
SLM Student Loan Trust 2005-6 B, 3M USD LIBOR + 0.290%		2.87	#		1/25/2044		110,233		102,441		103,053
SLM Student Loan Trust 2006-10 B, 3M USD LIBOR + 0.220%		2.80	#		3/25/2044		634,827		591,870		597,256
SLM Student Loan Trust 2006-4 B, 3M USD LIBOR + 0.200%		2.78	#		1/25/2070		136,695		127,894		127,214
SLM Student Loan Trust 2006-5 B, 3M USD LIBOR + 0.210%		2.79	#		10/25/2040		103,171		91,033		96,136
SLM Student Loan Trust 2006-7 B, 3M USD LIBOR + 0.200%		2.78	#		1/27/2042		50,180		47,400		46,149
SLM Student Loan Trust 2013-6, 1M USD LIBOR + 1.500%		3.90	#		7/26/2083		100,000		100,000		94,770
SLM Student Loan Trust 2014-2, 1M USD LIBOR + 1.500%		3.90	#		1/25/2072		100,000		100,125		99,537
SoFi Consumer Loan Program Trust 2019-3^		3.89			5/25/2028		200,000		199,942		202,527
SoFi Professional Loan Program LLC 2017-A C^		4.43			3/26/2040		100,000		99,500		105,518
South Carolina Student Loan Corp. 2014-1 B, 1M USD LIBOR + 1.500%		3.94	#		8/1/2035		100,000		98,597		100,786
Store Master Funding I-VII^		4.74			10/20/2048		229,233		236,075		249,252

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Asset-Backed Securities (Continued)
Other Asset-Backed Securities (Continued)
Taco Bell Funding LLC^		4.94	%		11/25/2048		39,800	$	39,800	$	42,375
Taco Bell Funding LLC 2016-1A A23^		4.97			5/25/2046		68,600		69,197		71,039
Textainer Marine Containers VII Ltd.^		5.28			4/20/2044		197,333		197,256		203,235
TRIP Rail Master Funding LLC 2011-1A A2^		6.02			7/15/2041		99,849		107,571		105,610
Triton Container Finance IV LLC 2017-2A A^		3.62			8/20/2042		116,532		116,519		117,909
Wachovia Student Loan Trust 2005-1 B, 3M USD LIBOR + 0.300%		2.88	#		10/25/2040		62,798		57,779		57,695
Willis Engine Structured Trust IV^		4.75			9/15/2043		386,469		395,329		403,472
Total Other Asset-Backed Securities							8,078,353		7,923,116		8,061,020
Total Asset-Backed Securities							23,985,141		23,794,239		23,948,081
Corporate Bonds — 34.4%*:
Chemicals — 0.6%*:
OCP SA^+		4.50			10/22/2025		250,000		247,587		255,922
Commercial Banks — 5.3%*:
ADCB Finance Cayman Ltd.+		4.50			3/6/2023		400,000		413,161		419,000
Bank of China Hong Kong Ltd.^+		5.90			3/14/2067		200,000		206,679		213,043
BBVA Bancomer SA^+		6.75			9/30/2022		250,000		270,131		272,075
Goldman Sachs Group, Inc. (The)		5.75			1/24/2022		205,000		217,969		221,561
Morgan Stanley		4.10			5/22/2023		865,000		881,345		910,554
Vnesheconombank Via VEB Finance plc^+		5.94			11/21/2023		200,000		213,446		211,750
Total Commercial Banks							2,120,000		2,202,731		2,247,983
Diversified Financial Services — 5.8%*:
AerCap Ireland Capital DAC / AerCap Global Aviation Trust+		4.88			1/16/2024		580,000		605,208		622,807
Capital One Financial Corp.		4.75			7/15/2021		740,000		763,954		773,555
Power Finance Corp. Ltd.+		3.75			6/18/2024		250,000		248,634		251,834
REC Ltd.^+		5.25			11/13/2023		300,000		314,242		319,505
Shinhan Financial Group Co. Ltd.+		5.88			7/23/2022		200,000		204,345		211,937
SPARC EM SPC Panama Metro Line 2 SP+		Zero Coupon			12/5/2022		320,311		300,639		303,098
Total Diversified Financial Services							2,390,311		2,437,022		2,482,736
Electric — 0.6%*:
Tabreed Sukuk Spc Ltd.+		5.50			10/31/2025		250,000		269,535		270,547
Engineering&Construction — 0.6%*:
Dianjian International Finance Ltd.+		4.60	**		7/19/2167		250,000		246,251		255,740
Insurance — 0.7%*:
Hanwha Life Insurance Co. Ltd.+		4.70			4/23/2048		300,000		296,852		295,974

See accompanying Notes to the Financial Statements.

138

Barings Diversified Income Fund (formerly Barings Total Return Bond Fund) 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Iron/Steel — 0.8%*:
MMK International Capital DAC^+		4.38	%		6/13/2024		325,000	$	325,000	$	329,212
Mining — 1.8%*:
Gold Fields Orogen Holdings BVI Ltd.^+		5.13			5/15/2024		200,000		200,000		208,625
MMC Norilsk Nickel OJSC Via MMC Finance DAC^+		4.10			4/11/2023		200,000		196,239		202,250
Volcan Cia Minera SAA^+		5.38			2/2/2022		350,000		362,386		363,125
Total Mining							750,000		758,625		774,000
Miscellaneous Manufacturing — 1.8%*:
General Electric Co.		5.30			2/11/2021		730,000		749,143		756,324
Multi-National — 2.2%*:
Africa Finance Corp.^+		4.38			4/17/2026		260,000		258,117		268,330
Black Sea Trade & Development Bank+		3.50			6/25/2024		200,000		199,087		201,458
Eastern & Southern African Trade & Development Bank+		4.88			5/23/2024		200,000		198,927		205,374
Eastern & Southern African Trade & Development Bank+		5.38			3/14/2022		250,000		256,665		259,231
Total Multi-National							910,000		912,796		934,393
Oil and Gas — 1.6%*:
Gazprom OAO Via Gaz Capital SA+		2.95			1/24/2024		250,000		291,519		304,880
Helmerich & Payne, Inc.		4.65			3/15/2025		25,000		25,360		26,467
Petroleos Mexicanos+		8.25			6/2/2022		250,000		359,829		347,339
Total Oil and Gas							525,000		676,708		678,686
Pharmaceuticals — 2.2%*:
CVS Health Corp.		3.35			3/9/2021		905,000		907,503		917,572
Pipelines — 1.0%*:
Energy Transfer Operating LP		7.50			10/15/2020		37,000		38,889		39,246
KazTransGas JSC^+		4.38			9/26/2027		400,000		405,941		408,380
Total Pipelines							437,000		444,830		447,626
Real Estate — 2.6%*:
NE Property BV+		2.63			5/22/2023		260,000		286,007		302,617
NE Property BV+		3.75			2/26/2021		300,000		344,834		354,073
Powerlong Real Estate Holdings Ltd.+		5.95			7/19/2020		200,000		197,862		199,000
Shimao Property Holdings Ltd.		6.38			10/15/2021		250,000		259,928		261,250
Total Real Estate							1,010,000		1,088,631		1,116,940
Retail — 2.0%*:
Dollar Tree, Inc.		3.70			5/15/2023		620,000		634,853		640,152
El Puerto de Liverpool SAB de CV+^		3.95			10/2/2024		200,000		199,386		201,002
Total Retail							820,000		834,239		841,154

See accompanying Notes to the Financial Statements.

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Barings Diversified Income Fund (formerly Barings Total Return Bond Fund) 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Telecommunications — 3.2%*:
AT&T, Inc.		3.00	%		6/30/2022		855,000	$	849,602	$	869,973
Bharti Airtel International Netherlands BV^+		5.35			5/20/2024		450,000		466,260		476,523
Total Telecommunications							1,305,000		1,315,862		1,346,496
Trucking and Leasing — 1.6%*:
Park Aerospace Holdings Ltd.^+		5.25			8/15/2022		650,000		682,762		686,270
Total Corporate Bonds							13,927,311		14,396,077		14,637,575
Mortgage-Backed Securities — 6.3%*:
BANK 2017-BNK4		4.37			5/15/2050		400,000		411,889		419,495
BANK 2017-BNK4		4.67			4/15/2052		196,000		201,822		211,571
BBCMS 2018-CHRS Mortgage Trust^		4.41			8/5/2038		100,000		97,744		106,046
BHMS, 1M USD LIBOR + 1.500%^		3.89	#		7/15/2035		100,000		100,000		99,999
COMM 2014-LC17 Mortgage Trust		4.70			10/10/2047		400,000		410,423		414,840
COMM 2014-UBS5 Mortgage Trust		4.76			9/10/2047		195,000		197,739		201,676
Connecticut Avenue Securities Trust 2019-R02, 1M USD LIBOR + 2.300%^		4.70	#		8/25/2031		230,000		229,945		232,243
Connecticut Avenue Securities Trust 2019-R03, 1M USD LIBOR + 2.150%^		4.55	#		9/25/2031		200,000		200,000		201,046
GS Mortgage Securities Corp. II^		3.00			7/10/2051		165,000		138,374		147,492
GS Mortgage Securities Trust 2016-GS2		4.68			5/10/2049		200,000		207,130		215,281
J.P. Morgan Chase Commercial Mortgage Securities Trust 2019-OSB^		3.78			6/5/2039		213,000		211,293		215,590
Wells Fargo Commercial Mortgage Trust 2015-NXS3		4.64			9/15/2057		200,000		200,998		210,761
Total Mortgage-Backed Securities							2,599,000		2,607,357		2,676,040
U.S. Treasury & Government Agencies — 0.7%*:
U.S. Treasury Notes		2.75			11/30/2020		300,000		301,623		303,750
Total Fixed Income							40,811,452		41,099,296		41,565,446
Short-Term Investments — 3.8%*:
Commercial Paper — 3.8%*:
Agriculture — 1.0%*:
BAT International Finance PLC+		2.91			7/9/2019		400,000		399,747		399,747
Construction Materials — 0.9%*:
Fortive Corp.		2.68			7/10/2019		400,000		399,736		399,736
Electric — 0.9%*:
Entergy Corp.		2.83			8/8/2019		400,000		398,830		398,830

See accompanying Notes to the Financial Statements.

140

Barings Diversified Income Fund (formerly Barings Total Return Bond Fund) 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Short-Term Investments (Continued)
Oil and Gas — 1.0%*:
Enbridge, Inc.		2.86	%		7/1/2019		400,000	$	400,000	$	400,000
Total Commercial Paper							1,600,000		1,598,313		1,598,313
Total Short-Term Investments							1,600,000		1,598,313		1,598,313
Total Investments							42,411,452		42,697,609		43,163,759
Other assets and liabilities — (1.6%)*											(664,932	)
Net Assets — 100.0%											$42,498,827

‡‡ 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%
Cayman Islands	4.5%
Niger	2.6%
Ireland	2.4%
Ivory Coast	2.3%
Mexico	1.9%
Russia	1.7%
Iran	1.4%
India	1.3%
Slovakia	1.2%
Other (Individually less than 1%)	4.3%
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.

¤ 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 June 30, 2019.

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

See accompanying Notes to the Financial Statements.

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Barings Diversified Income Fund (formerly Barings Total Return Bond Fund) 2019 Annual Report

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June 30, 2019

Affiliate Table

	NUMBER OF SHARES HELD AT 6/30/18	VALUE AT 6/30/18		COST OF PURCHASES		PROCEEDS FROM SHARES SOLD			REALIZED GAIN (LOSS)			CHANGE IN UNREALIZED APPRECIATION/ DEPRECIATION			NUMBER OF SHARES HELD AT 6/30/19		VALUE AT 6/30/19		DIVIDEND INCOME		CAPITAL GAIN DISTRIBUTIONS
Barings U.S. High Yield Fund	268,341	$	2,635,105	$	110,810	$	(2,719,379	)	$	(4,629	)	$	(21,907	)		—	$	—	$	113,100	$	—

A summary of outstanding derivatives at June 30, 2019 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)
10/29/19	JPMorgan Chase Bank N.A.		ARS	571,814	$	11,319	$	11,064	$	255
10/29/19	Bank of America N.A.		ARS	571,815		11,320		11,264		56
10/29/19	BNP Paribas S.A.		ARS	2,551,033		50,498		48,158		2,340
7/5/19	Barclays Bank plc		EUR	841,179		956,750		957,923		(1,173	)
7/5/19	Barclays Bank plc		GBP	301,887		383,441		383,884		(443	)
Net unrealized appreciation on forward foreign currency exchange contracts to buy									$	1,035

Forward Foreign Currency Exchange Contracts to Sell

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
10/29/19	JPMorgan Chase Bank N.A.		ARS	571,814	$	11,319	$	11,064	$	(255	)
10/29/19	Bank of America N.A.		ARS	571,815		11,319		11,264		(55	)
10/29/19	BNP Paribas S.A.		ARS	2,551,033		50,498		48,158		(2,340	)
7/5/19	Barclays Bank plc		EUR	841,179		956,750		939,458		(17,292	)
8/6/19	Barclays Bank plc		EUR	853,464		973,258		974,443		1,185
7/5/19	Barclays Bank plc		GBP	301,887		383,441		380,871		(2,570	)
8/6/19	Barclays Bank plc		GBP	277,484		352,998		353,368		370
Net unrealized depreciation on forward foreign currency exchange contracts to sell									$	(20,957	)

Currency Legend

ARS	–	Argentine Peso
CRC	–	Costa Rican Colon
EUR	–	Euro
GBP	–	British Pound Sterling
KES	–	Kenyan Shilling
RON	–	Romanian New Leu

See accompanying Notes to the Financial Statements.

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June 30, 2019

Futures

TYPE	EXPIRATION DATE	CONTRACTS		NOTIONAL AMOUNT			POSITION		FAIR VALUE		UNREALIZED DEPRECIATION
Short Futures
Euro-BOBL Future	09/06/19		3		(461,180	)		Short		$   (458,615)	$	(2,565	)
Euro-SCHATZ Future	09/06/19		3		(383,812	)		Short		(383,038)		(774	)
U.S. 2-Year Treasury Note	09/30/19		6		(1,300,234	)		Short		(1,291,078)		(9,156	)
U.S. 5-Year Treasury Note	09/30/19		83		(9,927,090	)		Short		(9,806,969)		(120,121	)
U.S. 10-Year Ultra Bond	09/19/19		14		(1,985,303	)		Short		(1,933,750)		(51,553	)
Total Short Futures											$	(184,169	)

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	$	130		$	(6,008	)	$	(6,138	)
CMBX.NA.BBB-.6†		3.00	%		1M		5/11/2063	Goldman Sachs & Co.		70,000		70,000		(5,051	)		(7,010	)		(1,959	)
Total OTC Credit Default Swaps														(4,921	)		(13,018	)		(8,097	)

(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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Barings Emerging Markets Debt Blended Total Return Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 97.2%*:
Corporate Bonds — 39.3%*:
Agriculture — 2.6%*:
MHP SE+^		7.75	%		5/10/2024		1,250,000		$1,248,255		$1,327,050
Chemicals — 2.8%*:
Consolidated Energy Finance SA+^		6.88			6/15/2025		170,000		175,428		174,107
Grupo Idesa SA de CV+^		7.88			12/18/2020		1,000,000		938,443		748,750
Petkim Petrokimya Holding AS+^		5.88			1/26/2023		500,000		469,929		483,750
Total Chemicals							1,670,000		1,583,800		1,406,607
Commercial Banks — 12.0%*:
Alfa Bank AO Via Alfa Bond Issuance plc, 5 year USD Swap + 6.660%+		8.00	#		12/29/2049		400,000		415,240		409,864
Banco Mercantil del Norte SA, 10 year CMT + 5.470%+^		7.50	#b		1/1/1900		315,000		315,000		318,386
Banco Mercantil del Norte SA, 10 year CMT + 5.353%		7.63			1/1/1900		500,000		546,032		513,750
Itau Unibanco Holding SA		6.13	#		6/12/2066		500,000		501,499		508,675
Standard Bank Group Ltd., 5 year USD Swap + 3.754%+		5.95	#		5/31/2029		397,000		397,000		412,880
TBC Bank JSC^+		5.75			6/19/2024		675,000		667,846		671,625
TBC Bank JSC+		10.78	**		12/31/2099		645,000		645,000		645,000
Turkiye Halk Bankasi AS+^		3.88			2/5/2020		300,000		290,974		292,799
Turkiye Halk Bankasi AS+^		4.75			2/11/2021		600,000		559,169		550,687
Turkiye Is Bankasi AS+^		5.00			6/25/2021		500,000		473,144		486,325
Turkiye Sinai Kalkinma Bankasi AS+		4.88			5/18/2021		750,000		703,324		720,000
Turkiye Sinai Kalkinma Bankasi AS+		5.13			4/22/2020		500,000		488,837		496,590
Total Commercial Banks							6,082,000		6,003,065		6,026,581
Energy-Alternate Sources — 0.8%*:
Adani Green Energy UP Ltd./Prayatna Developers Pvt Ltd./Parampujya Solar Energ^+		6.25			12/10/2024		397,000		397,000		405,361
Food — 2.0%*:
MARB BondCo plc^+		6.88			1/19/2025		500,000		512,195		521,615
Minerva Luxembourg SA+^		5.88			1/19/2028		500,000		465,781		500,000
Total Food							1,000,000		977,976		1,021,615
Iron/Steel — 1.6%*:
CSN Resources SA+^		7.63			2/13/2023		750,000		743,939		791,250
Mining — 2.1%*:
Petra Diamonds US Treasury plc+^		7.25			5/1/2022		1,050,000		1,048,058		1,039,500
Oil and Gas — 3.8%*:
Kosmos Energy Ltd.^+		7.13			4/4/2026		755,000		755,000		760,663

See accompanying Notes to the Financial Statements.

144

Barings Emerging Markets Debt Blended Total Return Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Oil and Gas (Continued)
Petroleos Mexicanos+		6.75	%		9/21/2047		750,000	$	704,685	$	667,875
Tullow Oil plc+^		7.00			3/1/2025		500,000		492,865		508,125
Total Oil and Gas							2,005,000		1,952,550		1,936,663
Real Estate — 4.9%*:
Kaisa Group Holdings Ltd.+		11.25			4/9/2022		750,000		766,297		773,592
New Metro Global Ltd.+		6.50			4/23/2021		500,000		491,493		505,035
Powerlong Real Estate Holdings Ltd.+		5.95			7/19/2020		300,000		298,155		298,500
Sunac China Holdings Ltd.+		7.95			10/11/2023		630,000		625,456		633,345
Yuzhou Properties Co. Ltd.+		6.38			3/6/2021		250,000		249,852		251,381
Total Real Estate							2,430,000		2,431,253		2,461,853
Retail — 1.6%*:
Eurotorg LLC Via Bonitron DAC+^		8.75			10/30/2022		750,000		757,668		791,250
Telecommunications — 3.6%*:
Axtel SAB de CV^+		6.38			11/14/2024		500,000		501,742		509,844
IHS Netherlands Holdco BV+^		9.50			10/27/2021		550,000		556,652		570,669
Oztel Holdings SPC Ltd.^+		6.63			4/24/2028		500,000		492,262		491,250
Turk Telekomunikasyon AS+^		6.88			2/28/2025		250,000		248,559		251,451
Total Telecommunications							1,800,000		1,799,215		1,823,214
Water — 1.5%*:
Aegea Finance Sarl+^		5.75			10/10/2024		750,000		715,572		774,609
Total Corporate Bonds							19,934,000		19,658,351		19,805,553
Foreign Government — 57.9%*:
Albania — 1.0%*:
Albania Government International Bond+^		3.50			10/9/2025		400,000		460,779		481,562
Angola — 1.0%*:
Angolan Government International Bond+^		8.25			5/9/2028		480,000		496,414		513,600
Argentina — 3.6%*:
Argentine Republic Government International Bond+		5.00			1/15/2027		100,000		84,429		82,973
Argentine Republic Government International Bond+		8.28			12/31/2033		1,065,549		857,441		888,402
Provincia de Buenos Aires+		4.00			5/1/2020		299,988		335,305		331,629
Provincia de Cordoba+^		7.13			6/10/2021		580,000		591,169		498,800
Total Argentina							2,045,537		1,868,344		1,801,804
Brazil — 5.2%*:
Brazil Notas do Tesouro Nacional Serie B+		6.00			8/15/2050		2,240,000		2,213,659		2,609,957

See accompanying Notes to the Financial Statements.

145

Barings Emerging Markets Debt Blended Total Return Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Colombia — 2.9%*:
Colombian TES+		7.50	%		8/26/2026		1,350,000,000	$	448,592	$	464,739
Colombian TES+		10.00			7/24/2024		2,688,600,000		1,037,234		1,011,168
Total Colombia							4,038,600,000		1,485,826		1,475,907
Dominican Republic — 1.4%*:
Dominican Republic International Bond+^		8.63			4/20/2027		570,000		666,119		680,443
Ecuador — 1.0%*:
Ecuador Government International Bond+^		9.65			12/13/2026		480,000		491,207		520,650
Egypt — 4.2%*:
Egypt Government International Bond^+		6.38			4/11/2031		1,000,000		1,122,349		1,156,999
Egypt Treasury Bills+		Zero Coupon			7/2/2019		10,550,000		590,821		630,827
Egypt Treasury Bills+		Zero Coupon			7/16/2019		5,275,000		293,170		314,151
Total Egypt							16,825,000		2,006,340		2,101,977
El Salvador — 3.6%*:
El Salvador Government International Bond+^		7.38			12/1/2019		200,000		200,798		202,000
El Salvador Government International Bond+^		8.25			4/10/2032		600,000		642,969		661,500
El Salvador Government International Bond+^		8.63			2/28/2029		850,000		984,025		969,000
Total El Salvador							1,650,000		1,827,792		1,832,500
Ghana — 3.9%*:
Ghana Government Bond+^		10.75			10/14/2030		700,000		864,601		887,250
Ghana Government Bond+		16.50			2/6/2023		3,500,000		807,630		594,009
Ghana Government Bond+		17.60			11/28/2022		155,000		26,007		27,189
Ghana Government Bond+		18.25			7/25/2022		1,173,000		224,514		210,081
Ghana Government Bond+		21.50			3/9/2020		480,000		111,186		90,355
Ghana Government Bond+		24.75			3/1/2021		155,000		30,271		30,829
Ghana Government Bond+		24.75			7/19/2021		546,000		110,872		109,885
Total Ghana							6,709,000		2,175,081		1,949,598
Greece — 0.9%*:
Hellenic Republic Government Bond+^		3.88			3/12/2029		375,000		427,268		478,085
Guam — 0.4%*:
Guatemala Government Bond^+		6.13			6/1/2050		200,000		196,635		210,375
Honduras — 1.1%*:
Honduras Government International Bond^+		6.25			1/19/2027		500,000		522,340		538,125

See accompanying Notes to the Financial Statements.

146

Barings Emerging Markets Debt Blended Total Return Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Indonesia — 3.0%*:
Indonesia Treasury Bond+		7.00	%		5/15/2027		3,578,000,000	$	239,160	$	249,213
Indonesia Treasury Bond+		8.25			5/15/2036		3,300,000,000		240,475		244,098
Indonesia Treasury Bond+		8.38			3/15/2034		13,640,000,000		1,039,512		1,023,423
Total Indonesia							20,518,000,000		1,519,147		1,516,734
Ivory Coast — 0.9%*:
Ivory Coast Government International Bond+^		5.25			3/22/2030		420,000		453,812		466,227
Malaysia — 3.0%*:
Malaysia Government Bond+		3.96			9/15/2025		1,978,000		476,653		488,689
Malaysia Government Bond+		4.92			7/6/2048		3,800,000		991,673		1,005,946
Total Malaysia							5,778,000		1,468,326		1,494,635
Mexico — 11.5%*:
Mexican Bonos+		7.75			11/13/2042		60,400,000		2,915,411		3,111,956
Mexican Bonos+		8.00			11/7/2047		41,000,000		1,872,358		2,163,978
Mexico Government International Bond+		5.75			10/12/2110		500,000		504,497		546,250
Total Mexico							101,900,000		5,292,266		5,822,184
Peru — 2.9%*:
Peru Government Bond+		6.85			2/12/2042		2,809,000		982,347		991,660
Peru Government Bond+		8.20			8/12/2026		1,300,000		465,097		489,111
Total Peru							4,109,000		1,447,444		1,480,771
Senegal — 0.7%*:
Senegal Government International Bond+^		4.75			3/13/2028		300,000		372,120		341,770
Ukraine — 5.7%*:
Ukraine Government International Bond^+		6.75			6/20/2026		595,000		670,833		716,612
Ukraine Government International Bond+^		7.75			9/1/2020		625,000		635,575		645,703
Ukraine Government International Bond+^		7.75			9/1/2021		325,000		336,845		339,787
Ukraine Government International Bond+^		8.99			2/1/2024		600,000		597,734		653,400
Ukraine Government International Bond+^		9.75			11/1/2028		480,000		484,473		542,100
Total Ukraine							2,625,000		2,725,460		2,897,602
Total Foreign Government							24,704,206,537		28,116,379		29,214,506
Total Fixed Income							24,724,140,537		47,774,730		49,020,059

See accompanying Notes to the Financial Statements.

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COUNTERPARTY		STRIKE PRICE		EXPIRATION DATE		CONTRACTS		NOTIONAL		COST		UNREALIZED VALUE			FAIR VALUE
Purchased Option — 0.0%**:
Put Option Purchased — 0.0%*:
EUR Put/ USD Call	Bank of America N.A.		$1.13		8/5/2019		4,000,000		4,000,000		$50,762		(37,731	)		$13,031
Total Investments											24,728,140,537		47,825,492			49,033,090
Other assets and liabilities — 2.8%*																1,400,943
Net Assets — 100.0%																$50,434,033

OTC Over the Counter

b Security is perpetual in nature and has no stated maturity.

‡‡ 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:

Mexico	17.5%
Brazil	10.6%
Ukraine	9.6%
Turkey	6.7%
Ghana	6.6%
China	5.0%
Egypt	4.3%
El Salvador	3.7%
Argentina	3.7%
Indonesia	3.1%
Malaysia	3.0%
United States	3.0%
Peru	3.0%
Colombia	3.0%
South Africa	2.1%
Belarus	1.6%
Dominican Republic	1.4%
Nigeria	1.2%
Honduras	1.1%
United Kingdom	1.1%
Ecuador	1.1%
Angola	1.0%
Albania	1.0%
Greece	1.0%
Ivory Coast	1.0%
Other (Individually less than 1%)	3.6%
Total	100.0%

See accompanying Notes to the Financial Statements.

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^ 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 June 30, 2019.

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

A summary of outstanding derivatives at June 30, 2019 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)
7/16/19	EUR/CZK	Citibank N.A.		22,106,795		859,234	$	10,720
7/16/19	EUR/CZK	JPMorgan Chase Bank N.A.		6,134,804		241,000		65
7/16/19	EUR/HUF	Citibank N.A.		310,648,655		962,000		(782	)
7/16/19	EUR/PLN	Barclays Bank plc		13,912,601		3,231,985		48,347
7/16/19	EUR/PLN	Citibank N.A.		399,564		94,000		47
7/16/19	HUF/EUR	Barclays Bank plc		677,833		218,328,600		2,513
7/16/19	HUF/EUR	Bank of America N.A.		64,000		20,730,080		(171	)
Net unrealized appreciation on cross currency forward foreign currency exchange contracts							$	60,739

Forward Foreign Currency Exchange Contracts to Buy

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
10/29/19	BNP Paribas S.A.		ARS	86,840,864	$	1,719,020	$	1,635,000	$	84,020
10/29/19	Bank of America N.A.		ARS	37,505,807		742,429		719,609		22,820
10/29/19	Goldman Sachs & Co.		ARS	5,353,250		105,968		95,000		10,968
10/29/19	JPMorgan Chase Bank N.A.		ARS	47,192,207		934,172		846,008		88,164
10/29/19	Barclays Bank plc		ARS	15,375,358		304,356		307,000		(2,644	)
7/23/19	Bank of America N.A.		AUD	2,809,573		1,973,922		2,017,654		(43,732	)
7/23/19	Goldman Sachs & Co.		AUD	72,703		51,079		51,000		79
7/9/19	Barclays Bank plc		BRL	5,016,374		1,305,531		1,296,254		9,277
7/9/19	Goldman Sachs & Co.		BRL	425,628		110,771		108,000		2,771
7/9/19	JPMorgan Chase Bank N.A.		BRL	7,896,538		2,055,106		2,063,807		(8,701	)
7/9/19	Citibank N.A.		CLP	617,079,870		910,725		891,000		19,725
7/23/19	JPMorgan Chase Bank N.A.		CNH	8,019,080		1,167,146		1,160,000		7,146
7/9/19	Goldman Sachs & Co.		COP	1,598,771,328		497,394		500,476		(3,082	)
7/16/19	Bank of America N.A.		EUR	4,818,765		5,485,839		5,465,625		20,214
7/16/19	JPMorgan Chase Bank N.A.		EUR	190,362		216,714		212,978		3,736
7/16/19	Citibank N.A.		EUR	1,294,272		1,473,441		1,475,727		(2,286	)
7/16/19	JPMorgan Chase Bank N.A.		GBP	751,690		955,287		945,132		10,155

See accompanying Notes to the Financial Statements.

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EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
7/23/19	Barclays Bank plc		MYR	6,329,559	$	1,531,731	$	1,524,150	$	7,581
7/23/19	Bank of America N.A.		NZD	692,216		465,257		455,000		10,257
7/9/19	Barclays Bank plc		PEN	979,760		297,469		296,000		1,469
7/23/19	JPMorgan Chase Bank N.A.		PHP	74,477,250		1,452,385		1,422,000		30,385
7/3/19	Bank of America N.A.		RUB	3,023,020		47,799		47,888		(89	)
7/16/19	Bank of America N.A.		RUB	61,138,850		965,184		937,743		27,441
7/16/19	Barclays Bank plc		RUB	10,286,195		162,386		158,000		4,386
7/16/19	Barclays Bank plc		SEK	8,294,060		894,120		899,231		(5,111	)
7/16/19	Bank of America N.A.		SEK	838,555		90,398		89,000		1,398
Net unrealized appreciation on forward foreign currency exchange contracts to buy									$	296,347

Forward Foreign Currency Exchange Contracts to Sell

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
7/9/19	Citibank N.A.		BRL	11,284,812	$	2,936,918	$	2,898,000	$	(38,918	)
7/16/19	Citibank N.A.		CHF	989,121		1,014,589		993,000		(21,589	)
7/9/19	Barclays Bank plc		CLP	1,287,233,350		1,899,779		1,937,000		37,221
8/6/19	Bank of America N.A.		CLP	362,813,600		535,673		508,000		(27,673	)
8/6/19	Citibank N.A.		CLP	701,259,720		1,035,370		1,002,000		(33,370	)
7/23/19	Goldman Sachs & Co.		CNH	16,394,844		2,386,206		2,441,707		55,501
7/9/19	Citibank N.A.		COP	4,327,313,825		1,346,271		1,375,466		29,195
7/9/19	Barclays Bank plc		COP	673,075,800		209,401		213,675		4,274
7/9/19	Goldman Sachs & Co.		COP	1,654,077,700		514,600		514,000		(600	)
7/16/19	Citibank N.A.		GBP	751,690		955,286		986,886		31,600
7/23/19	Citibank N.A.		IDR	31,485,936,572		2,224,080		2,203,200		(20,880	)
8/20/19	Citibank N.A.		IDR	3,435,762,000		241,788		240,937		(851	)
8/20/19	Barclays Bank plc		IDR	1,179,654,100		83,017		83,000		(17	)
7/16/19	Citibank N.A.		ILS	3,536,048		991,662		993,809		2,147
8/13/19	Bank of America N.A.		ILS	5,385,310		1,512,867		1,498,000		(14,867	)
7/23/19	Barclays Bank plc		INR	105,122,099		1,520,255		1,491,894		(28,361	)
7/23/19	Bank of America N.A.		JPY	105,007,138		975,554		969,000		(6,554	)
7/9/19	Citibank N.A.		MXN	75,656,220		3,937,239		3,882,713		(54,526	)
8/6/19	Citibank N.A.		MXN	25,033,119		1,296,795		1,295,000		(1,795	)
7/23/19	Morgan Stanley & Co.		MYR	4,203,353		1,017,197		1,015,180		(2,017	)
7/23/19	Barclays Bank plc		NZD	1,427,290		959,319		967,100		7,781
7/9/19	Citibank N.A.		PEN	2,238,415		679,615		675,340		(4,275	)
8/6/19	Goldman Sachs & Co.		PEN	3,590,873		1,088,871		1,080,412		(8,459	)
7/23/19	Bank of America N.A.		PHP	126,255,750		2,462,120		2,418,322		(43,798	)
7/16/19	Citibank N.A.		RUB	17,329,545		273,577		269,000		(4,577	)
7/16/19	Bank of America N.A.		RUB	5,808,438		91,696		92,000		304
7/23/19	Citibank N.A.		SGD	1,308,376		967,408		968,614		1,206
8/20/19	JPMorgan Chase Bank N.A.		SGD	1,320,232		976,571		966,000		(10,571	)

See accompanying Notes to the Financial Statements.

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EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
8/20/19	Citibank N.A.		SGD	106,818	$	79,013	$	79,000	$	(13	)
7/23/19	Citibank N.A.		THB	31,006,544		1,011,509		975,567		(35,942	)
7/23/19	JPMorgan Chase Bank N.A.		THB	46,440,145		1,514,991		1,483,000		(31,991	)
7/16/19	Bank of America N.A.		ZAR	27,588,691		1,955,324		1,937,000		(18,324	)
8/13/19	Bank of America N.A.		ZAR	14,539,446		1,026,917		999,000		(27,917	)
8/13/19	Barclays Bank plc		ZAR	29,620,276		2,092,073		2,086,000		(6,073	)
Net unrealized depreciation on forward foreign currency exchange contracts to sell									$	(274,729	)

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
EUR	–	Euro
GBP	–	British Pound Sterling
HUF	–	Hungarian Forint
IDR	–	Indonesian Rupiah
ILS	–	Israeli Shekel
INR	–	Indian Rupee
JPY	–	Japanese Yen
MXN	–	Mexican Peso
MYR	–	Malaysian Ringgit
NZD	–	New Zealand Dollar
PEN	–	Peruvian Nuevo Sol
PHP	–	Philippines Peso
PLN	–	Polish Zloty
RUB	–	Russian Ruble
SEK	–	Swedish Krona
SGD	–	Singapore Dollar
THB	–	Thai Baht
ZAR	–	South African Rand

FUTURES

TYPE	EXPIRATION DATE	CONTRACTS		NOTIONAL AMOUNT			POSITION		FAIR VALUE			UNREALIZED DEPRECIATION
Short Future
U.S. Ultra Bond	09/19/19		8		(1,348,706	)		Short	$	(1,420,500	)	$	(71,794	)

See accompanying Notes to the Financial Statements.

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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 DEPRECIATION
HUF-BUBOR Rate	Receive		1.85	%		6/25/29		1Y/6M		1,335,000,000		LCH	$	24,683
PLN-WIBOR Rate	Receive		1.87	%		6/25/24		1Y/6M		12,500,000		LCH		850
HUF-BUBOR Rate	Receive		1.32	%		12/17/21		1Y/6M		2,241,000,000		LCH		(170,163	)
HUF-BUBOR Rate	Receive		2.27	%		5/27/29		1Y/6M		142,000,000		LCH		(18,148	)
HUF-BUBOR Rate	Receive		1.08	%		2/06/22		1Y/6M		1,590,000,000		LCH		(65,934	)
PLN-WIBOR Rate	Receive		2.01	%		3/22/24		1Y/6M		19,000,000		LCH		(36,508	)
HUF-BUBOR Rate	Receive		0.97	%		3/26/22		1Y/6M		1,500,000,000		LCH		(36,744	)
Total Centrally Cleared Interest Rate Swaps													$	(301,964	)

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)
300,000 EUR	4.75%		1Y/6M		03/13/2028	Bank of America N.A.		372,150 USD		7.43	%	$	30		$	49,024		$	48,994
595,000 EUR	6.75%		1Y/6M		06/20/2026	Citibank N.A.		671,160 USD		9.58	%		327			(7,225	)		(7,552	)
400,000 EUR	3.50%		1Y/6M		10/09/2025	Citibank N.A.		462,000 USD		6.56	%		(60	)		18,401			18,461
75,333 EUR	4.00%		1Y/6M		05/01/2020	Citibank N.A.		85,601 USD		7.30	%		(4	)		763			767
100,000 EUR	5.00%		1Y/6M		01/15/2027	Citibank N.A.		112,980 USD		7.92	%		–			1,624			1,624
158,000 EUR	4.00%		1Y/6M		05/01/2020	Citibank N.A.		180,436 USD		7.33	%		750			2,604			1,854
1,000,000 EUR	6.88%		1Y/6M		04/11/2031	Citibank N.A.		1,122,000 USD		9.95	%		(351	)		(4,690	)		(4,339	)
66,667 EUR	4.00%		1Y/6M		05/01/2020	Citibank N.A.		76,000 USD		7.13	%		(3	)		804			807
420,000 EUR	3.88%		1Y/6M		03/22/2030	Citibank N.A.		475,860 USD		8.19	%		(126	)		11,693			11,819
375,000 EUR	3.88%		1Y/6M		03/12/2029	Citibank N.A.		424,875 USD		6.64	%		(112	)		9,712			9,824
Total OTC Cross Currency Swaps													451		$	82,710			82,259

See accompanying Notes to the Financial Statements.

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OTC – Interest Rate Swaps

DESCRIPTION	NOTIONAL AMOUNT		UNREALIZED APPRECIATION (DEPRECIATION)			VALUE
Agreement with Bank of America N.A. dated 3/21/2019 receiving a fixed rate of 8.21% paying the notional amount multiplied by the 3 Month MOSPRIME rate. Expiring 3/21/2024.	RUB	110,000,000	$	55,451		$	55,451
Agreement with Bank of America N.A. dated 3/20/2019 receiving a fixed rate of 8.27% paying the notional amount multiplied by the 3 Month MOSPRIME rate. Expiring 3/21/2024.	RUB	94,000,000		51,166			51,166
Agreement with Bank of America N.A. dated 4/16/2019 paying a fixed rate of 8.59% receiving the notional amount multiplied by the BRL-CDI rate. Expiring 1/2/2025.	BRL	6,000,452		(151,928	)		(151,928	)
Agreement with Bank of America N.A. dated 4/9/2019 receiving a fixed rate of 8.31% paying/ the notional amount multiplied by the 3 Month MOSPRIME rate. Expiring 4/10/2024.	RUB	124,000,000		29,638			29,638
Agreement with Bank of America N.A. dated 4/2/2019 receiving a fixed rate of 8.40% paying/ the notional amount multiplied by the 3 Month MOSPRIME rate. Expiring 4/3/2024.	RUB	73,000,000		21,794			21,794
Agreement with Bank of America N.A. dated 4/8/2019 receiving a fixed rate of 8.35% paying the notional amount multiplied by the 3 Month MOSPRIME rate. Expiring 4/9/2024.	RUB	124,000,000		32,943			32,943
Agreement with Bank of America N.A. dated 4/16/2019 paying a fixed rate of 8.60% receiving the notional amount multiplied by the BRL-CDI rate. Expiring 1/2/2025.	BRL	6,059,774		(154,386	)		(154,386	)
Agreement with Bank of America N.A. dated 4/4/2019 receiving a fixed rate of 8.35% paying the notional amount multiplied by the 3 Month MOSPRIME rate. Expiring 4/4/2024.	RUB	73,000,000		19,387			19,387
Agreement with BNP Paribas dated 4/16/2019 paying a fixed rate of 8.60% receiving the notional amount multiplied by the BRL-CDI rate. Expiring 1/2/2025.	BRL	12,869,211		(327,872	)		(327,872	)
Agreement with Citibank N.A. dated 3/20/2019 receiving a fixed rate of 8.28% paying the notional amount multiplied by the 3 Month MOSPRIME rate. Expiring 3/21/2024.	RUB	62,000,000		34,164			34,164
Total OTC Interest Rate Swaps			$	(389,643	)	$	(389,643	)

See accompanying Notes to the Financial Statements.

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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
Brazil Government International Bond	1.00%		3M		6/20/2024		Bank of America N.A.		500,000		500,000	$	(14,025	)	$	(11,449	)	$	2,576
Colombia Government International Bond	1.00%		3M		6/20/2024		Bank of America N.A.		1,000,000		1,000,000		(5,751	)		4,328			10,079
Indonesia Government International Bond	1.00%		3M		6/20/2024		BNP Paribas S.A.		3,000,000		3,000,000		(692	)		14,028			14,720
Malaysia Government International Bond	1.00%		3M		6/20/2024		BNP Paribas S.A.		1,500,000		1,500,000		27,213			33,393			6,180
Mexico Government International Bond	1.00%		3M		6/20/2024		Bank of America N.A.		1,000,000		1,000,000		(13,605	)		(4,935	)		8,670
Mexico Government International Bond	1.00%		3M		6/20/2024		JPMorgan Chase Bank N.A.		500,000		500,000		(6,271	)		(2,467	)		3,804
Peruvian Government International Bond	1.00%		3M		6/20/2024		Bank of America N.A.		500,000		500,000		(13,764	)		(11,449	)		2,315
Peruvian Government International Bond	1.00%		3M		6/20/2024		Bank of America N.A.		1,000,000		1,000,000	$	15,119		$	22,484		$	7,365
Total OTC Credit Default Swaps												$	(11,776	)	$	43,933		$	55,709

(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) 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

June 30, 2019

	SHARES		COST		FAIR VALUE
Equities — 89.6%*:
Common Stocks — 89.6%*:
Communication Services — 5.9%*:
Mail.Ru Group Ltd.+(a)		4,180		$110,980		$106,673
Tencent Holdings Ltd.+		12,100		486,586		546,163
Total Communication Services		16,280		597,566		652,836
Consumer Discretionary — 9.3%*:
Alibaba Group Holding Ltd.+(a)		4,029		632,446		682,714
Naspers Ltd.+		934		196,725		226,754
Samsonite International SA^		55,500		164,954		127,317
Total Consumer Discretionary		60,463		994,125		1,036,785
Consumer Staples — 3.1%*:
CP ALL Public Company Limited+		71,600		150,312		200,786
X5 Retail Group NV+		4,259		103,537		146,041
Total Consumer Staples		75,859		253,849		346,827
Energy — 5.8%*:
CNOOC Ltd.+		117,000		215,023		200,100
Novatek PJSC+		646		112,843		136,952
Reliance Industries Ltd.+^		8,504		288,054		307,420
Total Energy		126,150		615,920		644,472
Financials — 32.7%*:
AIA Group Ltd.+		21,000		174,125		226,487
B3 SA - Brasil Bolsa Balcao+		20,557		111,069		200,540
Banco do Brasil SA+		8,300		56,922		116,591
Bancolombia SA+		3,723		152,248		190,022
China Construction Bank Corp.+		496,000		410,951		427,318
China Pacific Insurance Group Co. Ltd.+		49,400		172,692		193,194
Grupo Financiero Banorte SAB de CV+		30,302		215,928		175,998
Hana Financial Group, Inc.+		6,217		237,492		201,373
HDFC Bank Ltd.+		3,800		358,595		494,152
Itau Unibanco Holding SA+		21,781		152,280		205,177
Mega Financial Holding Co. Ltd.+		213,000		182,642		211,906
Ping An Insurance Group Co. of China Ltd.+		35,000		332,657		420,267
PT Bank Negara Indonesia Persero Tbk+		354,100		174,120		230,594
Sanlam Ltd.+		32,257		164,909		179,000
Sberbank of Russia PJSC+††		10,509		119,730		160,578
Total Financials		1,305,946		3,016,360		3,633,197
Industrials — 3.7%*:
China State Construction International Holdings Ltd.+		210,000		198,648		215,600
Rumo SA+(a)		36,200		125,794		195,426
Total Industrials		246,200		324,442		411,026

See accompanying Notes to the Financial Statements.

155

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	SHARES		COST		FAIR VALUE
Common Stocks (Continued)
Information Technology — 16.6%*:
Chicony Electronics Co. Ltd.+		49,000	$	100,603	$	120,530
Hangzhou Hikvision Digital Technology Co. Ltd.+		33,300		135,627		133,718
Infosys Ltd.+		12,411		130,681		132,798
Samsung Electronics Co. Ltd.+		17,290		692,046		703,789
Sunny Optical Technology Group Co. Ltd.+		9,400		108,663		97,108
Taiwan Semiconductor Manufacturing Co. Ltd.+		86,000		716,077		661,762
Total Information Technology		207,401		1,883,697		1,849,705
Materials — 6.2%*:
Angang Steel Co. Ltd.+		234,000		156,043		106,640
Anglo American plc+		9,442		193,738		269,886
Cemex SAB de CV+		16,900		120,690		71,656
LG Chem Ltd.+		793		250,323		243,467
Total Materials		261,135		720,794		691,649
Real Estate — 4.6%*:
China Overseas Land & Investment Ltd.+		72,000		214,001		265,448
China Resources Land Ltd.+		56,000		188,928		246,604
Total Real Estate		128,000		402,929		512,052
Utilities — 1.7%*:
Huaneng Renewables Corp. Ltd.+		694,000		202,375		191,008
Total Common Stocks		3,121,434		9,012,057		9,969,557
Total Equities		3,121,434		9,012,057		9,969,557
Mutual Fund — 3.5%*:
iShares MSCI India ETF		11,081		372,134		391,159
Total Investments		3,132,515		9,384,191		10,360,716
Other assets and liabilities — 6.9%*						764,127
Net Assets — 100.0%						$11,124,843

* Calculated as a percentage of net assets applicable to common shareholders.

+ Foreign security.

See accompanying Notes to the Financial Statements.

156

Barings Global Emerging Markets Equity Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

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

China	36.0%
India	12.8%
Republic of Korea	11.1%
Taiwan	9.6%
Brazil	6.9%
South Africa	6.5%
Russia	5.3%
Hong Kong	3.4%
Mexico	2.4%
Indonesia	2.2%
Thailand	2.0%
Colombia	1.8%
Total	100.0%

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

†† Illiquid security.

(a) Non-income producing security.

See accompanying Notes to the Financial Statements.

157

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SCHEDULE OF INVESTMENTS

June 30, 2019

						SHARES		COST		FAIR VALUE
Equities — 0.3%*:
Common Stock — 0.3%*:
Oil and Gas — 0.3%*:
Jupiter Resources, Inc.+							33,592		$162,354		$88,179
Warrants — 0.0%*:
Diversified/Conglomerate Manufacturing — 0.0%*:
Appvion Holdings Corp. (exp. June 13, 2023)††							319		–		40
Appvion Holdings Corp. (exp. June 13, 2023)††							319		–		159
Total Diversified/Conglomerate Manufacturing							638		–		199
Total Warrants							638		–		199
Total Equities							34,230		162,354		88,378
	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 97.4%*:
Bank Loans — 7.5%*§:
Aerospace and Defense — 1.0%*:
TransDigm, Inc., 1M LIBOR + 2.500%		4.83	%		6/9/2023		242,771		239,065		238,144
Ducommun, Inc., 1M LIBOR + 4.000%		6.37			11/19/2025		32,579		32,423		32,701
Total Aerospace and Defense							275,350		271,488		270,845
Broadcasting and Entertainment — 0.2%*:
CSC Holdings, LLC, 1M LIBOR + 3.000%		5.39			4/15/2027		40,202		39,816		40,212
Chemicals, Plastics and Rubber — 0.4%*:
Consolidated Energy Finance, S.A., 1M LIBOR + 2.500%		4.90			5/7/2025		108,390		104,294		105,409
Containers, Packaging and Glass — 0.5%*:
BWAY Holding Co., 1M LIBOR + 3.250%		5.85			4/3/2024		149,618		147,548		144,319
Diversified/Conglomerate Manufacturing — 0.2%*:
Tank Holding Corp., 1M LIBOR + 4.000%		6.63			3/22/2026		61,542		61,241		61,484
Diversified/Conglomerate Service — 0.8%*:
Evertec Group, LLC, 1M LIBOR + 3.500%		5.90			11/27/2024		43,095		42,899		43,202
Vertafore, Inc., 1M LIBOR + 3.250%		5.65			7/2/2025		179,100		175,119		171,861
Total Diversified/Conglomerate Service							222,195		218,018		215,063
Electronics — 0.4%*:
Veritas Bermuda Ltd., 3M LIBOR + 4.500%		6.89			1/27/2023		124,364		115,921		112,939
Leisure, Amusement, Entertainment — 0.3%*:
SeaWorld Parks & Entertainment, Inc., 3M LIBOR + 3.000%		5.40			3/31/2024		78,177		78,091		77,842

See accompanying Notes to the Financial Statements.

158

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Oil and Gas — 1.0%*:
Fieldwood Energy LLC, 1M LIBOR + 5.250%		7.65	%		4/11/2022		300,000	$	303,377	$	277,218
Retail Stores — 0.6%*:
Michaels Stores, Inc., 1M LIBOR + 2.500%		4.90			1/28/2023		178,881		174,183		172,956
Telecommunications — 2.1%*:
CommScope, Inc., 1M LIBOR + 3.250%		5.65			4/6/2026		29,737		29,449		29,618
Sabre Industries, Inc.		6.89			4/15/2026		36,223		35,870		36,155
Sprint Communications, Inc., 1M LIBOR + 2.500%		4.94			2/3/2024		172,895		166,770		170,085
CenturyLink, Inc., 3M LIBOR + 2.750%		5.15			1/31/2025		247,487		245,913		241,439
Banff Merger Sub, Inc., 3M LIBOR + 4.250%		6.58			10/2/2025		113,280		112,227		107,085
Total Telecommunications							599,622		590,229		584,382
Total Bank Loans							2,138,341		2,104,206		2,062,669
Corporate Bonds — 89.9%*:
Aerospace and Defense — 1.5%*:
Heathrow Finance plc+		3.88			3/1/2027		100,000		127,117		123,528
Triumph Group, Inc.		4.88			4/1/2021		38,000		37,302		37,430
Triumph Group, Inc.		7.75			8/15/2025		250,000		250,000		241,875
Total Aerospace and Defense							388,000		414,419		402,833
Automobile — 3.3%*:
AA Bond Co. Ltd.+		4.88			7/31/2024		100,000		124,723		124,672
AA Bond Co. Ltd.+		5.50			7/31/2022		200,000		276,944		215,892
Allison Transmission, Inc.^		5.88			6/1/2029		120,000		120,000		126,300
Garrett LX I Sarl/Garrett Borrowing LLC+		5.13			10/15/2026		200,000		227,313		218,664
RAC Bond Co. PLC+		5.00			11/6/2022		200,000		244,128		227,533
Total Automobile							820,000		993,108		913,061
Beverage, Food and Tobacco — 4.9%*:
Boparan Finance PLC+		5.50			7/15/2021		150,000		192,263		104,742
JBS Investments II GmbH^+		7.00			1/15/2026		200,000		202,913		216,600
JBS USA LUX SA/JBS USA Finance, Inc.^		5.88			7/15/2024		137,000		139,890		140,939
JBS USA LUX SA/JBS USA Finance, Inc.^		6.75			2/15/2028		250,000		250,000		271,562
JBS USA LUX SA/JBS USA Food Co./JBS USA Finance, Inc.^		6.50			4/15/2029		200,000		200,000		217,250
KeHE Distributors LLC/KeHE Finance Corp.^		7.63			8/15/2021		150,000		150,785		148,875
Premier Foods Finance plc, 3M GBP LIBOR + 5.000%+		5.82	#		7/15/2022		100,000		126,870		127,154
Sunshine Mid BV+		6.50			5/15/2026		100,000		121,055		117,884
Total Beverage, Food and Tobacco							1,287,000		1,383,776		1,345,006

See accompanying Notes to the Financial Statements.

159

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Broadcasting and Entertainment — 8.3%*:
Arqiva Broadcast Finance PLC+		6.75	%		9/30/2023		100,000	$	130,610	$	136,442
Charter Communications Capital Corp.^		5.00			2/1/2028		275,000		275,085		280,830
Clear Channel Worldwide Holdings, Inc.^		9.25			2/15/2024		190,000		190,000		206,150
DISH DBS Corp.		7.75			7/1/2026		125,000		125,000		121,250
Entertainment One Ltd.+		4.63			7/15/2026		100,000		125,820		130,551
Intelsat Jackson Holdings SA^		8.50			10/15/2024		250,000		250,000		247,500
Intelsat Jackson Holdings SA^		9.75			7/15/2025		25,000		26,264		25,500
Netflix, Inc.		3.88			11/15/2029		100,000		111,565		123,178
Netflix, Inc.^		5.38			11/15/2029		100,000		100,000		106,219
Nexstar Escrow, Inc.^		5.63			7/15/2027		250,000		250,000		255,938
Sirius XM Radio, Inc.^		4.63			7/15/2024		250,000		250,000		255,820
Sirius XM Radio, Inc.^		5.50			7/1/2029		200,000		200,000		205,040
Tele Columbus AG+		3.88			5/2/2025		150,000		157,908		158,678
Total Broadcasting and Entertainment							2,115,000		2,192,252		2,253,096
Buildings and Real Estate — 1.0%*:
Mattamy Group Corp.+^		6.50			10/1/2025		45,000		44,022		47,419
Mattamy Group Corp.+^		6.88			12/15/2023		123,000		116,778		128,074
Realogy Group LLC/Realogy Co-Issuer Corp.^		9.38			4/1/2027		125,000		125,000		109,531
Total Buildings and Real Estate							293,000		285,800		285,024
Cargo Transport — 2.8%*:
American Airlines Group, Inc.^		5.00			6/1/2022		250,000		250,000		257,575
Kenan Advantage Group, Inc.^		7.88			7/31/2023		400,000		408,581		360,000
XPO Logistics, Inc.^		6.75			8/15/2024		150,000		150,000		159,937
Total Cargo Transport							800,000		808,581		777,512
Chemicals, Plastics and Rubber — 2.4%*:
Consolidated Energy Finance SA^		6.88			6/15/2025		100,000		99,604		102,416
Diversey		5.63			8/15/2025		100,000		107,286		94,379
INEOS Group Holdings SA+		5.38			8/1/2024		100,000		109,614		116,837
LBC Tank Terminals Holding Netherlands BV^		6.88			5/15/2023		215,000		210,061		212,850
SGL Carbon SE+		4.63			9/30/2024		100,000		112,385		117,927
Total Chemicals, Plastics and Rubber							615,000		638,950		644,409
Commercial Services — 0.8%*:
Altice Finco S.A.+		9.00			6/15/2023		100,000		117,139		118,240
Wind Tre SpA, 3M EURIBOR + 2.750%+		2.75	#		1/20/2024		100,000		104,316		112,144
Total Commercial Services							200,000		221,455		230,384
Containers, Packaging and Glass — 1.8%*:
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.+^		7.25			5/15/2024		200,000		205,801		210,750
BWAY Holding Co.		4.75			4/15/2024		100,000		115,660		116,928

See accompanying Notes to the Financial Statements.

160

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Containers, Packaging and Glass (Continued)
BWAY Holding Co.^		7.25	%		4/15/2025		161,000	$	154,161	$	155,365
Total Containers, Packaging and Glass							461,000		475,622		483,043
Diversified/Conglomerate Manufacturing — 1.0%*:
Appvion ESC, 3M EURIBOR + 4.125%^¤		9.00	#		6/1/2020		327,000		275,264		—
Colfax Corp.^		6.38			2/15/2026		135,000		135,000		144,788
Energizer Gamma Acquisition BV		4.63			7/15/2026		100,000		116,130		118,969
Total Diversified/Conglomerate Manufacturing							562,000		526,394		263,757
Diversified/Conglomerate Service — 3.6%*:
ADT LLC/Prime Finance, Inc.^		9.25			5/15/2023		104,000		110,238		109,221
Algeco Global Finance PLC+		6.50			2/15/2023		100,000		121,721		118,651
Carlson Travel, Inc.^		9.50			12/15/2024		280,000		280,000		279,300
Genesys Telecommunications Laboratories Inc/Greeneden Lux 3 Sarl/Greeneden US Ho^		10.00			11/30/2024		153,000		165,989		166,196
Iron Mountain UK PLC		3.88			11/15/2025		100,000		132,815		125,831
Verisure Midholding AB+		5.75			12/1/2023		150,000		176,872		176,325
Total Diversified/Conglomerate Service							887,000		987,635		975,524
Ecological — 0.5%*:
Clean Harbors, Inc.^		4.88			7/15/2027		86,000		86,000		87,406
Clean Harbors, Inc.^		5.13			7/15/2029		38,000		38,000		38,760
Total Ecological							124,000		124,000		126,166
Electronics — 0.8%*:
Veritas US, Inc./Veritas Bermuda Ltd.^		10.50			2/1/2024		250,000		256,675		214,375
Finance — 5.4%*:
Arrow Global Finance PLC+		5.13			9/15/2024		150,000		193,174		186,921
Cabot Financial Luxembourg SA+		7.50			10/1/2023		100,000		133,716		131,122
Galaxy Finco Ltd.+		7.88			11/15/2021		250,000		380,524		311,772
Garfunkelux Holdco 3 S.A.+		8.50			11/1/2022		400,000		559,461		455,658
Jerrold Finco PLC+		6.13			1/15/2024		100,000		124,555		128,951
Virto Financial, Inc.^		6.75			6/15/2022		244,000		248,914		252,825
Total Finance							1,244,000		1,640,344		1,467,249
Healthcare, Education and Childcare — 9.1%*:
Advanz Pharma Corp.+		8.00			9/6/2024		100,000		95,199		97,250
Bausch Health Americas., Inc.^		8.50			1/31/2027		170,000		175,361		186,918
Bausch Health Cos., Inc.^		5.88			5/15/2023		18,000		15,731		18,209
Catalent Pharma Solutions, Inc.^		5.00			7/15/2027		95,000		95,000		96,663
Cerba+		5.38			4/15/2025		100,000		108,705		110,299
Cream Tech+		5.25			12/15/2025		200,000		233,801		231,387
Endo Dac/Endo Finance LLC/Endo Finco Inc^		6.00			2/1/2025		240,000		197,281		160,800

See accompanying Notes to the Financial Statements.

161

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Healthcare, Education and Childcare (Continued)
Endo Pharmaceutical^		7.50	%		4/1/2027		150,000	$	150,000	$	147,375
Envision Healthcare Corp.^		8.75			10/15/2026		250,000		250,000		174,375
Mallinckrodt International Finance SA/Mallinckrodt CB LLC^		5.63			10/15/2023		38,000		34,101		28,690
Mallinckrodt International Finance SA/Mallinckrodt CB LLC^		5.75			8/1/2022		34,000		31,787		29,240
Nidda Healthcare Holding GmbH+		3.50			9/30/2024		100,000		112,228		117,136
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA^		6.63			5/15/2022		220,000		212,580		210,100
Recordati+		6.75			10/30/2025		100,000		119,267		123,497
Service Corp. International/US		5.13			6/1/2029		250,000		250,000		263,125
Synlab Unsecured Bondco PLC+		8.25			7/1/2023		100,000		130,246		118,636
Tenet Healthcare Corp.^		6.25			2/1/2027		250,000		250,000		258,750
Unilabs Subholding AB+		5.75			5/15/2025		100,000		112,188		115,700
Total Healthcare, Education and Childcare							2,515,000		2,573,475		2,488,150
Home and Office Furnishings, Housewares, and Durable Consumer Products — 0.8%*:
Balta+		7.75			9/15/2022		202,500		237,939		228,791
Hotels, Motels, Inns and Gaming — 1.7%*:
Travelodge+		8.50			5/15/2023		160,000		224,005		212,185
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.^		5.25			5/15/2027		125,000		125,000		125,469
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.^		5.50			3/1/2025		125,000		123,493		129,100
Total Hotels, Motels, Inns and Gaming							410,000		472,498		466,754
Insurance — 1.6%*:
Acrisure LLC/Acrisure Finance, Inc.^		7.00			11/15/2025		250,000		250,000		225,625
Acrisure LLC/Acrisure Finance, Inc.^		8.13			2/15/2024		200,000		200,000		206,500
Total Insurance							450,000		450,000		432,125
Leisure, Amusement, Entertainment — 4.5%*:
AMC Entertainment Holdings, Inc.		6.38			11/15/2024		200,000		260,077		247,112
Brunswick Corp.		7.13			8/1/2027		192,000		201,294		224,412
Cedar Fair LP^		5.25			7/15/2029		91,000		91,000		92,848
Center Parks.+		4.88			8/28/2025		100,000		120,989		127,025
Perform Group Financing PLC+		8.50			11/15/2020		100,000		150,924		128,519
Playtech plc+		4.25			3/7/2026		100,000		116,539		120,248
Thomas Cook Group PLC+		6.25			6/15/2022		100,000		93,525		42,694
Vue International Bidco PLC+		7.88			7/15/2020		100,000		130,542		127,000
Warner Music Group		3.63			10/15/2026		100,000		116,499		119,964
Total Leisure, Amusement, Entertainment							1,083,000		1,281,389		1,229,822

See accompanying Notes to the Financial Statements.

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June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Machinery Non-Agriculture, Non-Construction, Non-Electronic — 0.8%*:
Apex Tool Group LLC/BC Mountain Finance, Inc.^		9.00	%		2/15/2023		250,000	$	250,000	$	223,125
Mining, Steel, Iron and Non-Precious Metals — 6.9%*:
Constellium NV		4.25			2/15/2026		200,000		231,750		233,788
First Quantum Minerals Ltd.+^		6.88			3/1/2026		229,000		229,000		212,398
First Quantum Minerals Ltd.+^		7.50			4/1/2025		75,000		69,835		71,438
Hecla Mining Co.		6.88			5/1/2021		250,000		234,814		238,624
Kinross Gold Corp.+		5.95			3/15/2024		127,000		130,832		138,770
Kinross Gold Corp.		6.88			9/1/2041		82,000		81,609		92,763
New Gold, Inc.^		6.25			11/15/2022		150,000		133,518		139,875
Northwest Acquisitions ULC/Dominion Finco, Inc.+^		7.13			11/1/2022		122,000		118,809		84,180
Peabody Energy Corp.^		6.00			3/31/2022		228,000		228,597		233,415
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp.^		7.50			6/15/2025		250,000		247,046		244,062
Warrior Met Coal, Inc.^		8.00			11/1/2024		198,000		198,000		206,415
Total Mining, Steel, Iron and Non-Precious Metals							1,911,000		1,903,810		1,895,728
Oil and Gas — 11.4%*:
Calumet Specialty Products Partners LP/Calumet Finance Corp.		7.63			1/15/2022		125,000		124,761		120,937
CGG Holding US, Inc.+		7.88			5/1/2023		150,000		183,784		182,249
CGG Holding US, Inc.^+		9.00			5/1/2023		200,000		212,951		212,250
Citgo Holding, Inc.^		10.75			2/15/2020		341,000		341,895		352,935
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp.^		5.63			5/1/2027		250,000		250,000		249,375
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp.		8.63			6/15/2020		288,000		284,900		211,680
Genesis Energy LP/Genesis Energy Finance Corp.		6.50			10/1/2025		300,000		300,000		293,250
Jonah Energy LLC/Jonah Energy Finance Corp.^		7.25			10/15/2025		218,000		218,000		104,095
KCA Deutag UK Finance PLC+^		9.63			4/1/2023		200,000		205,150		145,500
Laredo Petroleum, Inc.		5.63			1/15/2022		125,000		117,463		115,937
Neptune Energy Bondco PLC^		6.63			5/15/2025		400,000		403,613		406,000
Oasis Petroleum, Inc.		6.88			1/15/2023		65,000		64,143		65,000
Parkland Fuel Corp.^+		5.88			7/15/2027		182,000		182,000		184,903
SM Energy Co.		6.63			1/15/2027		119,000		119,000		110,075
Transocean, Inc.		6.80			3/15/2038		42,000		33,882		31,500
Transocean, Inc.		9.35			12/15/2041		32,000		29,810		28,960
Welltec A/S+^		9.50			12/1/2022		200,000		198,574		191,000
Whiting Petroleum Corp.		6.63			1/15/2026		100,000		100,178		96,438
Total Oil and Gas							3,337,000		3,370,104		3,102,084

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Personal and Non-Durable Consumer Products Mfg. Only — 0.4%*:
Samsonite Finco Sarl		3.50	%		5/15/2026		100,000	$	109,964	$	115,473
Personal Transportation — 0.4%*:
Getlink SE+		3.63			10/1/2023		100,000		117,465		119,334
Personal, Food and Miscellaneous — 0.8%*:
Ocado Group PLC+		4.00			6/15/2024		90,000		115,256		118,164
Simmons Foods, Inc.^		7.75			1/15/2024		104,000		104,867		112,060
Total Personal, Food and Miscellaneous							194,000		220,123		230,224
Printing and Publishing — 0.3%*:
Nielsen Finance LLC/Nielsen Finance Co.^		5.00			4/15/2022		73,000		71,786		72,818
Retail Stores — 2.0%*:
Maxeda DIY Holding B.V.+		6.13			7/15/2022		100,000		114,070		112,630
Takko Luxembourg 2 SCA+		5.38			11/15/2023		100,000		100,068		95,516
Travelex Financing PLC+		8.00			5/15/2022		300,000		337,885		339,950
Total Retail Stores							500,000		552,023		548,096
Telecommunications — 7.2%*:
CommScope Technologies Finance LLC^		6.00			6/15/2025		102,000		94,747		95,595
eircom Finance DAC+		3.50			5/15/2026		200,000		229,035		234,811
GrubHub Holdings, Inc.^		5.50			7/1/2027		83,000		83,000		85,189
Intelsat Connect Finance SA^		9.50			2/15/2023		89,000		87,695		78,765
Sprint Corp.		7.63			3/1/2026		250,000		260,767		266,500
Sprint Corp.		7.88			9/15/2023		53,000		56,223		57,571
Telecom Italia SpA/Milano+		4.00			4/11/2024		100,000		113,817		122,749
United Group BV+		4.88			7/1/2024		200,000		234,968		235,766
UPC Broadband+		3.63			6/15/2029		100,000		114,358		120,533
ViaSat, Inc.^		5.63			4/15/2027		149,000		149,000		154,960
Virgin Media Receivables Financing Notes I DAC+		5.50			9/15/2024		100,000		134,741		131,074
Virgin Media Secured Finance PLC^+		5.50			5/15/2029		250,000		254,375		253,675
Ziggo B.V.+		4.25			1/15/2027		100,000		115,064		120,533
Total Telecommunications							1,776,000		1,927,790		1,957,721
Utilities — 3.9%*:
Energia Group Power & Energy+		4.00			9/15/2025		100,000		119,009		115,313
NextEra Energy Operating Partners LP^		4.25			7/15/2024		125,000		125,000		125,784
Nordex SE+		6.50			2/1/2023		100,000		124,195		114,841
NRG Energy, Inc.^		5.25			6/15/2029		250,000		250,000		266,875
Techem Verwaltungsgesellschaft 674 mbH+		6.00			7/30/2026		250,000		291,395		301,605

See accompanying Notes to the Financial Statements.

164

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Utilities (Continued)
Vistra Operations Co. LLC^		5.00	%		7/31/2027		125,000	$	125,000	$	129,531
Total Utilities							950,000		1,034,599		1,053,949
Total Corporate Bonds							23,897,500		25,521,976		24,545,633
Total Fixed Income							26,035,841		27,626,182		26,608,302
Total Investments							26,070,071		27,788,536		26,696,680
Other assets and liabilities — 2.3%*											616,975
Net Assets — 100.0%											$27,313,655

‡‡ 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	61.8%
United Kingdom	16.3%
Germany	4.7%
France	2.8%
Canada	2.5%
Ireland	2.1%
Switzerland	1.7%
Italy	1.3%
Netherlands	1.3%
Zambia	1.1%
Other (Individually less than 1%)	4.4%
Total	100.0%

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

§ Bank loans are exempt from registration under the Securities Act of 1933, as amended, but contain certain restrictions on resale and cannot be sold publicly. These loans pay interest at rates which adjust periodically. The interest rates shown for bank loans are the current interest rates at June 30, 2019. 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.

# Variable rate security. The interest rate shown is the rate in effect at June 30, 2019.

See accompanying Notes to the Financial Statements.

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June 30, 2019

A summary of outstanding derivatives at June 30, 2019 is as follows:

Forward Foreign Currency Exchange Contracts to Buy

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED DEPRECIATION
7/8/19	Barclays Bank plc		EUR	100,479	$	114,313	$	114,498	$	(185	)
Net unrealized depreciation on forward foreign currency exchange contracts to buy									$	(185	)

Forward Foreign Currency Exchange Contracts to Sell

EXPIRATION DATE	COUNTERPARTY	LOCAL CURRENCY			VALUE IN USD		IN EXCHANGE FOR USD		NET UNREALIZED APPRECIATION (DEPRECIATION)
7/8/19	Bank of America N.A.		EUR	4,581,765	$	5,212,596	$	5,150,842	$	(61,754	)
7/8/19	BNP Paribas S.A.		EUR	304,270		346,163		346,270		107
7/8/19	Barclays Bank plc		GBP	100,845		128,108		128,273		165
7/8/19	BNP Paribas S.A.		GBP	2,400,317		3,049,227		3,034,150		(15,077	)
7/8/19	Bank of America N.A.		GBP	53,374		67,803		68,018		215
7/8/19	Citibank N.A.		GBP	279,818		355,465		355,861		396
Net unrealized depreciation on forward foreign currency exchange contracts to sell									$	(75,948	)

Currency Legend

EUR	–	Euro
GBP	–	British Pound Sterling

See accompanying Notes to the Financial Statements.

166

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SCHEDULE OF INVESTMENTS

June 30, 2019

						SHARES		COST		FAIR VALUE
Equities — 0.5%*:
Common Stocks — 0.5%*:
Oil and Gas — 0.5%*:
Fieldwood Energy LLC							4,100		$88,421		$123,000
Fieldwood Energy LLC							1,006		35,210		30,180
Jupiter Resources, Inc.+							39,729		192,017		104,289
Total Oil and Gas							44,835		315,648		257,469
Total Common Stocks							44,835		315,648		257,469
Warrants — 0.0%*:
Diversified/Conglomerate Manufacturing — 0.0%*:
Appvion Holdings Corp. (exp. June 13, 2023)††							357		–		45
Appvion Holdings Corp. (exp. June 13, 2023)††							357		–		178
Total Diversified/Conglomerate Manufacturing							714		–		223
Total Warrants							714		–		223
Total Equities							45,549		315,648		257,692
	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Fixed Income — 97.1%*:
Bank Loans — 8.1%*§:
Aerospace and Defense — 0.5%*:
Ducommun, Inc., 1M LIBOR + 4.000%		6.37	%		11/21/2025		33,828		33,666		33,955
TransDigm, Inc., 1M LIBOR + 2.500%		4.83			6/9/2023		242,771		239,064		238,144
Total Aerospace and Defense							276,599		272,730		272,099
Broadcasting and Entertainment — 0.7%*:
AP NMT Acquisition B.V., 3M LIBOR + 5.750%+		8.35			8/13/2021		296,114		296,131		293,523
CSC Holdings, LLC, 1M LIBOR + 3.000%		5.39			4/15/2027		44,968		44,536		44,979
Total Broadcasting and Entertainment							341,082		340,667		338,502
Buildings and Real Estate — 0.1%*:
GYP Holdings III Corp., 1M LIBOR + 2.750%		5.15			6/1/2025		30,326		30,325		29,498
Chemicals, Plastics and Rubber — 0.3%*:
Consolidated Energy Finance, S.A., 1M LIBOR + 2.500%		4.90			5/7/2025		159,164		152,910		154,787
Containers, Packaging and Glass — 1.4%*:
BWAY Holding Co., 1M LIBOR + 3.250%		5.85			4/3/2024		498,095		482,135		480,452
Reynolds Group Holdings, Inc., 1M LIBOR + 2.750%		5.15			2/5/2023		221,761		213,424		219,921
Total Containers, Packaging and Glass							719,856		695,559		700,373

See accompanying Notes to the Financial Statements.

167

Barings U.S. High Yield Fund 2019 Annual Report

SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Bank Loans (Continued)
Diversified/Conglomerate Manufacturing — 0.2%*:
Tank Holding Corp., 1M LIBOR + 4.000%		6.63	%		3/26/2026		91,932	$	91,484	$	91,845
Diversified/Conglomerate Service — 0.9%*:
Evertec Group, LLC, 1M LIBOR + 3.500%		5.90			11/27/2024		45,919		45,711		46,034
SonicWall U.S. Holdings, Inc., 3M LIBOR + 7.500%		10.02			5/18/2026		51,897		51,445		47,226
Vertafore, Inc., 1M LIBOR + 3.250%		5.65			7/2/2025		398,000		389,153		381,913
Total Diversified/Conglomerate Service							495,816		486,309		475,173
Electronics — 0.6%*:
Renaissance Holding Corp., 1M LIBOR + 7.000%		9.48			5/29/2026		68,962		67,767		65,515
Veritas Bermuda Ltd., 3M LIBOR + 4.500%		6.89			1/27/2023		248,728		231,843		225,877
Total Electronics							317,690		299,610		291,392
Leisure, Amusement, Entertainment — 0.2%*:
SeaWorld Parks & Entertainment, Inc., 3M LIBOR + 3.000%		5.40			3/31/2024		90,696		90,596		90,307
Oil and Gas — 0.5%*:
Fieldwood Energy LLC, 1M LIBOR + 5.250%		7.65			4/11/2022		172,215		158,169		159,137
Fieldwood Energy LLC, 1M LIBOR + 7.250%		9.65			4/11/2023		91,996		41,068		76,357
Total Oil and Gas							264,211		199,237		235,494
Retail Stores — 0.7%*:
Michaels Stores, Inc., 1M LIBOR + 2.500%		4.90			1/30/2023		397,513		387,074		384,348
Telecommunications — 2.0%*:
Banff Merger Sub, Inc., 3M LIBOR + 4.250%		6.58			10/2/2025		226,560		224,454		214,169
CenturyLink, Inc., 3M LIBOR + 2.750%		5.15			1/31/2025		494,975		491,823		482,878
CommScope, Inc., 1M LIBOR + 3.250%		5.65			4/6/2026		30,557		30,261		30,434
Sabre Industries, Inc.		6.89			4/2/2026		45,701		45,256		45,616
Sprint Communications, Inc., 1M LIBOR + 2.500%		4.94			2/2/2024		248,412		239,611		244,375
Total Telecommunications							1,046,205		1,031,405		1,017,472
Total Bank Loans							4,231,090		4,077,906		4,081,290
Corporate Bonds — 89.0%*:
Aerospace and Defense — 2.2%*:
TransDigm UK Holdings PLC		6.88			5/15/2026		500,000		496,625		505,938
Triumph Group, Inc.		4.88			4/1/2021		43,000		42,210		42,355
Triumph Group, Inc.		7.75			8/15/2025		595,000		599,487		575,662
Total Aerospace and Defense							1,138,000		1,138,322		1,123,955

See accompanying Notes to the Financial Statements.

168

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Automobile — 0.6%*:
Allison Transmission, Inc.^		4.75	%		10/1/2027		157,000	$	149,346	$	155,823
Allison Transmission, Inc.^		5.88			6/1/2029		120,000		120,000		126,300
Total Automobile							277,000		269,346		282,123
Beverage, Food and Tobacco — 3.3%*:
JBS Investments II GmbH^+		7.00			1/15/2026		200,000		202,913		216,600
JBS USA LUX SA/JBS USA Finance, Inc.^		5.88			7/15/2024		165,000		168,483		169,744
JBS USA LUX SA/JBS USA Finance, Inc.^		6.75			2/15/2028		250,000		250,000		271,562
JBS USA LUX SA/JBS USA Food Co./JBS USA Finance, Inc.^		6.50			4/15/2029		500,000		500,000		543,125
KeHE Distributors LLC/KeHE Finance Corp.^		7.63			8/15/2021		274,000		268,987		271,945
Smithfield Foods, Inc.^		5.20			4/1/2029		199,000		198,008		216,943
Total Beverage, Food and Tobacco							1,588,000		1,588,391		1,689,919
Broadcasting and Entertainment — 8.6%*:
Block Communications, Inc.^		6.88			2/15/2025		434,000		434,000		452,445
CCO Holdings LLC/CCO Holdings Capital Corp.^		5.75			2/15/2026		700,000		697,562		734,125
Clear Channel Worldwide Holdings, Inc.^		9.25			2/15/2024		190,000		190,000		206,150
CSC Holdings LLC^		6.63			10/15/2025		16,000		16,832		17,120
CSC Holdings LLC^		7.50			4/1/2028		250,000		250,000		274,450
DISH DBS Corp.		7.75			7/1/2026		280,000		262,421		271,600
Intelsat Jackson Holdings SA^		8.50			10/15/2024		603,000		603,775		596,970
Intelsat Jackson Holdings SA^		9.75			7/15/2025		56,000		58,831		57,120
Netflix, Inc.^		5.38			11/15/2029		339,000		340,297		360,083
Netflix, Inc.		5.88			11/15/2028		250,000		248,578		276,780
Nexstar Escrow, Inc.^		5.63			7/15/2027		271,000		271,000		277,436
Sirius XM Radio, Inc.^		4.63			7/15/2024		250,000		250,000		255,820
Sirius XM Radio, Inc.^		5.00			8/1/2027		350,000		350,000		356,090
Sirius XM Radio, Inc.^		5.50			7/1/2029		250,000		250,000		256,300
Total Broadcasting and Entertainment							4,239,000		4,223,296		4,392,489
Buildings and Real Estate — 4.5%*:
Brookfield Residential Properties, Inc.^+		6.50			12/15/2020		250,000		249,800		250,312
Brookfield Residential Properties, Inc./Brookfield Residential US Corp.^		6.13			7/1/2022		225,000		219,037		228,938
James Hardie International Finance DAC^		4.75			1/15/2025		244,000		239,339		248,880
M/I Homes, Inc.		5.63			8/1/2025		550,000		533,242		558,250
M/I Homes, Inc.		6.75			1/15/2021		250,000		250,000		254,062
Mattamy Group Corp.+^		6.50			10/1/2025		252,000		246,807		265,545
Mattamy Group Corp.+^		6.88			12/15/2023		123,000		116,778		128,074
MPT Operating Partnership LP/MPT Finance Corp.		5.00			10/15/2027		250,000		250,000		257,500
Realogy Group LLC/Realogy Co-Issuer Corp.^		9.38			4/1/2027		138,000		138,000		120,923
Total Buildings and Real Estate							2,282,000		2,243,003		2,312,484

See accompanying Notes to the Financial Statements.

169

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Cargo Transport — 4.6%*:
American Airlines Group, Inc.^		4.63	%		3/1/2020		250,000	$	249,790	$	251,562
American Airlines Group, Inc.^		5.00			6/1/2022		412,000		412,000		424,484
Kenan Advantage Group, Inc.^		7.88			7/31/2023		700,000		714,639		630,000
Wabtec Corp.		3.45			11/15/2026		532,000		477,621		519,852
XPO Logistics, Inc.^		6.13			9/1/2023		500,000		495,346		518,125
Total Cargo Transport							2,394,000		2,349,396		2,344,023
Chemicals, Plastics and Rubber — 1.5%*:
Consolidated Energy Finance SA^		6.88			6/15/2025		300,000		298,810		307,248
LBC Tank Terminals Holding Netherlands BV^		6.88			5/15/2023		250,000		244,257		247,500
Starfruit Finco BV/Starfruit US Holdco LLC+^		8.00			10/1/2026		180,000		180,000		184,950
Total Chemicals, Plastics and Rubber							730,000		723,067		739,698
Containers, Packaging and Glass — 0.6%*:
BWAY Holding Co.^		7.25			4/15/2025		302,000		289,170		291,430
Diversified/Conglomerate Manufacturing — 0.9%*:
Appvion ESC, 3M EURIBOR + 4.125%¤		9.00	#		6/1/2020		366,000		308,123		–
Colfax Corp.^		6.00			2/15/2024		122,000		122,000		129,015
Colfax Corp.^		6.38			2/15/2026		135,000		135,000		144,788
Energizer Holdings, Inc.^		7.75			1/15/2027		153,000		160,734		165,596
Total Diversified/Conglomerate Manufacturing							776,000		725,857		439,399
Diversified/Conglomerate Service — 1.6%*:
ADT LLC/Prime Finance, Inc.^		9.25			5/15/2023		310,000		327,386		325,562
Carlson Travel, Inc.^		9.50			12/15/2024		350,000		333,790		349,125
Go Daddy Operating Co. LLC/GD Finance Co., Inc.^		5.25			12/1/2027		125,000		125,000		129,375
Waste Pro USA, Inc.^		5.50			2/15/2026		17,000		17,000		17,382
Total Diversified/Conglomerate Service							802,000		803,176		821,444
Ecological — 0.3%*:
Clean Harbors, Inc.^		4.88			7/15/2027		91,000		91,000		92,488
Clean Harbors, Inc.^		5.13			7/15/2029		41,000		41,000		41,820
Total Ecological							132,000		132,000		134,308
Electronics — 4.7%*:
RP Crown Parent LLC^		7.38			10/15/2024		96,000		96,000		100,080
SS&C Technologies, Inc.^		5.50			9/30/2027		375,000		375,000		389,063
TIBCO Software, Inc.^		11.38			12/1/2021		1,383,000		1,467,518		1,469,437
Veritas US, Inc./Veritas Bermuda Ltd.^		10.50			2/1/2024		524,000		487,344		449,330
Total Electronics							2,378,000		2,425,862		2,407,910

See accompanying Notes to the Financial Statements.

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June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Finance — 6.1%*:
Alliance Data Systems Corp.^		5.88	%		11/1/2021		550,000	$	558,106	$	566,170
Ally Financial, Inc.		3.88			5/21/2024		250,000		247,531		255,938
Icahn Enterprises LP/Icahn Enterprises Finance Corp.		6.25			2/1/2022		135,000		137,623		138,206
Icahn Enterprises LP/Icahn Enterprises Finance Corp.^		6.25			5/15/2026		500,000		500,000		506,875
Icahn Enterprises LP/Icahn Enterprises Finance Corp.		6.38			12/15/2025		415,000		416,314		423,632
LPL Holdings, Inc.^		5.75			9/15/2025		518,000		512,276		530,302
Virto Financial, Inc.^		6.75			6/15/2022		671,000		682,733		695,270
Total Finance							3,039,000		3,054,583		3,116,393
Grocery — 0.9%*:
Post Holdings, Inc.^		5.50			3/1/2025		300,000		293,848		309,750
Post Holdings, Inc.^		5.50			12/15/2029		125,000		125,000		125,312
Total Grocery							425,000		418,848		435,062
Healthcare, Education and Childcare — 9.1%*:
Avantor, Inc.^		6.00			10/1/2024		25,000		26,053		26,600
Bausch Health Americas, Inc.^		9.25			4/1/2026		438,000		444,228		490,034
Bausch Health Americas., Inc.^		8.50			1/31/2027		175,000		180,519		192,416
Bausch Health Cos., Inc.^		5.88			5/15/2023		21,000		18,353		21,244
Bausch Health Cos., Inc.^		5.50			3/1/2023		49,000		39,945		49,392
Catalent Pharma Solutions, Inc.^		5.00			7/15/2027		98,000		98,000		99,715
Endo Dac/Endo Finance LLC/Endo Finco Inc^		6.00			2/1/2025		400,000		348,168		268,000
Endo Dac/Endo Finance LLC/Endo Finco, Inc.^		6.00			7/15/2023		131,000		108,894		94,320
Endo Pharmaceutical^		7.50			4/1/2027		300,000		300,000		294,750
Envision Healthcare Corp.^		8.75			10/15/2026		559,000		550,050		389,902
HCA, Inc.		5.38			2/1/2025		375,000		379,333		404,766
Mallinckrodt International Finance SA/Mallinckrodt CB LLC^		5.50			4/15/2025		170,000		147,852		113,900
Mallinckrodt International Finance SA/Mallinckrodt CB LLC^		5.63			10/15/2023		87,000		78,098		65,685
Mallinckrodt International Finance SA/Mallinckrodt CB LLC^		5.75			8/1/2022		152,000		141,245		130,720
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA^		6.63			5/15/2022		1,144,000		1,127,473		1,092,520
Service Corp. International/US		5.13			6/1/2029		271,000		271,000		285,228
Tenet Healthcare Corp.^		6.25			2/1/2027		306,000		306,000		316,710
Teva Pharmaceutical Finance Netherlands III BV+		6.00			4/15/2024		300,000		296,871		282,938
Total Healthcare, Education and Childcare							5,001,000		4,862,082		4,618,840

See accompanying Notes to the Financial Statements.

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June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Home and Office Furnishings, Housewares, and Durable Consumer Products — 0.5%*:
Mattel, Inc.^		6.75	%		12/31/2025		78,000	$	78,000	$	80,242
Newell Brands, Inc.		4.20			4/1/2026		157,000		148,249		156,032
Total Home and Office Furnishings, Housewares, and Durable Consumer Products							235,000		226,249		236,274
Hotels, Motels, Inns and Gaming — 1.6%*:
Boyne USA, Inc.^		7.25			5/1/2025		125,000		125,000		135,312
Golden Nugget, Inc.^		8.75			10/1/2025		200,000		204,033		210,000
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.^		5.25			5/15/2027		125,000		125,000		125,469
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.^		5.50			3/1/2025		350,000		346,097		361,480
Total Hotels, Motels, Inns and Gaming							800,000		800,130		832,261
Insurance — 2.2%*:
Acrisure LLC/Acrisure Finance, Inc.^††		7.00			11/15/2025		500,000		486,859		451,250
Acrisure LLC/Acrisure Finance, Inc.^††		8.13			2/15/2024		216,000		216,000		223,020
CNO Financial Group, Inc.		5.25			5/30/2029		125,000		125,000		135,312
USI, Inc.^		6.88			5/1/2025		275,000		272,207		272,250
York Risk Services Holding Corp.^		8.50			10/1/2022		47,000		44,094		38,658
Total Insurance							1,163,000		1,144,160		1,120,490
Leisure, Amusement, Entertainment — 1.0%*:
Brunswick Corp.		7.13			8/1/2027		346,000		363,272		404,409
Cedar Fair LP^		5.25			7/15/2029		93,000		93,000		94,889
Total Leisure, Amusement, Entertainment							439,000		456,272		499,298
Machinery Non-Agriculture, Non-Construction, Non-Electronic — 0.8%*:
Apex Tool Group LLC/BC Mountain Finance, Inc.^		9.00			2/15/2023		430,000		421,697		383,775
Mining, Steel, Iron and Non-Precious Metals — 9.1%*:
Compass Minerals International, Inc.^		4.88			7/15/2024		124,000		116,248		118,265
First Quantum Minerals Ltd.+^		6.88			3/1/2026		229,000		229,000		212,398
First Quantum Minerals Ltd.+^		7.00			2/15/2021		161,000		161,958		164,220
First Quantum Minerals Ltd.+^		7.50			4/1/2025		606,000		577,038		577,215
Hecla Mining Co.		6.88			5/1/2021		250,000		234,814		238,625
Kinross Gold Corp.+		5.95			3/15/2024		152,000		156,608		166,087
Kinross Gold Corp.		6.88			9/1/2041		99,000		98,527		111,994
Kissner Holdings LP/Kissner Milling Co. Ltd./BSC Holding, Inc./Kissner USA^+		8.38			12/1/2022		400,000		408,287		416,000
New Gold, Inc.^		6.25			11/15/2022		400,000		406,983		373,000
Northwest Acquisitions ULC/Dominion Finco, Inc.+^		7.13			11/1/2022		893,000		904,294		616,170

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Mining, Steel, Iron and Non-Precious Metals (Continued)
Peabody Energy Corp.^		6.00	%		3/31/2022		524,000	$	526,765	$	536,445
SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp.^		7.50			6/15/2025		550,000		556,821		536,937
Warrior Met Coal, Inc.^		8.00			11/1/2024		540,000		547,715		562,950
Total Mining, Steel, Iron and Non-Precious Metals							4,928,000		4,925,058		4,630,306
Oil and Gas — 10.7%*:
Calumet Specialty Products Partners LP/Calumet Finance Corp.		7.63			1/15/2022		155,000		155,037		149,963
Calumet Specialty Products Partners LP/Calumet Finance Corp.		7.75			4/15/2023		84,000		83,826		80,430
Cheniere Energy Partners LP^		5.63			10/1/2026		250,000		250,000		263,750
Citgo Holding, Inc.^		10.75			2/15/2020		762,000		773,807		788,670
Ferrellgas LP/Ferrellgas Finance Corp.		6.75			1/15/2022		21,000		21,129		18,585
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp.		8.63			6/15/2020		451,000		448,474		331,485
Genesis Energy LP/Genesis Energy Finance Corp.		6.00			5/15/2023		18,000		17,780		17,865
Genesis Energy LP/Genesis Energy Finance Corp.		6.50			10/1/2025		276,000		262,830		269,790
Jonah Energy LLC/Jonah Energy Finance Corp.^		7.25			10/15/2025		455,000		429,413		217,262
Laredo Petroleum, Inc.		5.63			1/15/2022		308,000		287,811		285,670
Neptune Energy Bondco PLC^		6.63			5/15/2025		242,000		242,264		245,630
Oasis Petroleum, Inc.		6.88			1/15/2023		133,000		131,249		133,000
Parkland Fuel Corp.^+		5.88			7/15/2027		125,000		125,000		126,994
PBF Holding Co. LLC/PBF Finance Corp.		7.25			6/15/2025		350,000		360,018		366,625
SM Energy Co.		6.63			1/15/2027		118,000		118,000		109,150
SM Energy Co.		6.75			9/15/2026		268,000		258,659		251,250
Transocean Guardian Ltd.^		5.88			1/15/2024		161,595		160,226		164,221
Transocean, Inc.		6.80			3/15/2038		244,000		197,118		183,000
Transocean, Inc.		9.35			12/15/2041		38,000		35,400		34,390
Tullow Oil PLC+^		6.25			4/15/2022		695,000		689,939		700,212
Welltec A/S+^		9.50			12/1/2022		550,000		553,526		525,250
Whiting Petroleum Corp.		6.63			1/15/2026		187,000		187,339		180,338
Total Oil and Gas							5,891,595		5,788,845		5,443,530
Personal, Food and Miscellaneous — 0.3%*:
Simmons Foods, Inc.^		7.75			1/15/2024		122,000		122,000		131,455
Printing and Publishing — 0.5%*:
Nielsen Finance LLC/Nielsen Finance Co.^		5.00			4/15/2022		274,000		269,715		273,315

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

	EFFECTIVE INTEREST RATE			DUE DATE		PRINCIPAL ‡‡		COST		FAIR VALUE
Corporate Bonds (Continued)
Retail Stores — 1.7%*:
Albertsons Cos. LLC/Safeway, Inc./New Albertsons LP/Albertson’s LLC^		7.50	%		3/15/2026		257,000	$	257,000	$	274,347
KGA Escrow LLC^		7.50			8/15/2023		282,000		282,000		292,575
Penske Automotive Group, Inc.		5.50			5/15/2026		250,000		250,000		260,625
Sonic Automotive, Inc.		5.00			5/15/2023		32,000		29,659		32,280
Total Retail Stores							821,000		818,659		859,827
Telecommunications — 8.5%*:
Altice Financing SA+^		6.63			2/15/2023		250,000		250,971		256,250
Altice Financing SA+^		7.50			5/15/2026		106,000		100,701		106,541
Altice Finco SA+^		8.13			1/15/2024		157,000		158,488		161,710
CenturyLink, Inc.		6.75			12/1/2023		280,000		280,578		302,050
CommScope Technologies LLC^		5.00			3/15/2027		600,000		574,638		522,000
Hughes Satellite Systems Corp.		6.63			8/1/2026		550,000		549,225		578,187
Intelsat Connect Finance SA^		9.50			2/15/2023		95,000		93,607		84,075
Sprint Capital Corp.		6.88			11/15/2028		700,000		706,501		719,460
Sprint Corp.		7.63			3/1/2026		125,000		125,000		133,250
Sprint Corp.		7.88			9/15/2023		114,000		117,829		123,833
T-Mobile USA, Inc.		4.50			2/1/2026		96,000		96,000		98,280
T-Mobile USA, Inc.		4.75			2/1/2028		210,000		208,723		216,058
T-Mobile USA, Inc.		5.38			4/15/2027		200,000		200,000		214,000
Telecom Italia SpA+^		5.30			5/30/2024		250,000		260,015		258,750
ViaSat, Inc.^		5.63			4/15/2027		149,000		149,000		154,960
Virgin Media Secured Finance PLC^+		5.50			5/15/2029		250,000		254,375		253,675
Ziggo BV+^		5.50			1/15/2027		140,000		134,149		142,409
Total Telecommunications							4,272,000		4,259,800		4,325,488
Utilities — 2.6%*:
NextEra Energy Operating Partners LP^		4.25			7/15/2024		250,000		250,000		251,568
NRG Energy, Inc.^		5.25			6/15/2029		272,000		272,000		290,360
Vistra Operations Co. LLC^		3.55			7/15/2024		250,000		249,522		251,471
Vistra Operations Co. LLC^		4.30			7/15/2029		250,000		249,463		253,440
Vistra Operations Co. LLC^		5.00			7/31/2027		250,000		250,000		259,062
Total Utilities							1,272,000		1,270,985		1,305,901
Total Corporate Bonds							46,150,595		45,749,969		45,191,397
Total Fixed Income							50,381,685		49,827,875		49,272,687
Total Investments							50,427,234		50,143,523		49,530,379
Other assets and liabilities – 2.4%*											1,238,685
Net Assets – 100.0%											$50,769,064

‡‡ Unless otherwise indicated, all principal amounts are denominated in United States Dollars.

* Calculated as a percentage of net assets applicable to common shareholders.

See accompanying Notes to the Financial Statements.

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SCHEDULE OF INVESTMENTS (CONTINUED)

June 30, 2019

+ 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	87.0%
Canada	4.2%
Zambia	1.9%
Netherlands	1.8%
Ghana	1.4%
Denmark	1.1%
Portugal	1.1%
Other (Individually less than 1%)	1.5%
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 June 30, 2019. 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.

# Variable rate security. The interest rate shown is the rate in effect at June 30, 2019.

See accompanying Notes to the Financial Statements.

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NOTES TO FINANCIAL STATEMENTS

June 30, 2019

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 June 30, 2019, 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 Diversified Income Fund (formerly Barings Total Return Bond Fund) (“Diversified Income Fund”), Barings Emerging Markets Debt Blended Total Return Fund (“Emerging Markets Debt Blended Total Return Fund”), Barings Global Emerging Markets Equity Fund (“Global Emerging Markets Equity Fund”), Barings Global High Yield Fund (“Global High Yield Fund”) and Barings U.S. High Yield Fund (“U.S. High Yield Fund”). On November 30, 2018 the Emerging Markets Local Currency Debt Fund was liquidated. Each Fund, other than Emerging Markets Debt Blended Total Return Fund and Global Emerging Markets Equity Fund, is a “diversified” investment company. Global Credit Income Opportunities Fund and Global Floating Rate Fund commenced operations on September 16, 2013. Active Short Duration Bond Fund and Diversified Income Fund commenced operations on July 8, 2015. Emerging Markets Debt Blended Total Return Fund commenced operations on October 21, 2015. Global High Yield Fund and U.S. High Yield Fund commenced operations on October 30, 2015. Global Emerging Markets Equity Fund commenced operations on September 17, 2018. On March 1, 2019, Barings Total Return Bond Fund changed its name to Barings Diversified Income Fund.

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 International Investment Limited (“BIIL”), a private limited company incorporated under the laws of England, and a wholly-owned indirect subsidiary of the Adviser, serves as a sub-adviser with respect to European

investments for the Global Floating Rate Fund, Global Credit Income Opportunities Fund, Emerging Markets Debt Blended Total Return Fund, Global Emerging Markets Equity Fund, and Global High Yield Fund.

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 Diversified Income Fund seeks an absolute return, primarily through current income and capital appreciation. 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 Global Emerging Markets Equity Fund is to seek to achieve long-term capital growth.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 BIIL to be of comparable quality. Under normal market conditions, the

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NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 2019

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. 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 Diversified Income 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: Collateralized loan obligations, U.S. and foreign issuer dollar-denominated debt securities 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, loans, and securities issued or guaranteed by a government or its agencies or insrumentalities. 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 Blended 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 Global Emerging Markets Equity Fund will invest at least 80% of its net assets (including the amount of any borrowings for investment purposes) in equity and equity-related securities of issues that are economically tied to one or more emerging market countries. In general, countries may be considered emerging markets if they are included in any one of the Morgan Stanley Capital Index (“MSCI”) emerging markets indices. 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 BIIL, to be of comparable quality. The Global High Yield Fund may

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invest in high yield securities of any rating, including 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: 1) Effective January 15, 2018, Class A Shares purchased without an initial sales charge in accounts aggregating $500,000 or more are subject to a 1.00% contingent deferred sales charge (CDSC) if the shares are tendered and accepted for repurchase within 18 months of purchase (or within 12 months for shares purchased prior to January 15, 2018). The 18-month period (or 12-month period for shares purchased prior to January 15, 2018) begins on the day on which the purchase was made; and 2) 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

In August 2018, FASB issued Accounting Standards Update No. 2018-13 “Fair Value Measurement (Topic 820) Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement”, which amends the disclosure requirements for fair value measurements by modifying or removing certain disclosures and adding certain new disclosures. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. As of June 30, 2019, Management has adopted the amendments.

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

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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 June 30, 2019. The assets and liabilities shown in the Statements of Assets and Liabilities related to cash collateral held at broker on futures contracts, cash collateral held at broker on open swap contracts and cash collateral held at broker on open options contracts are determined using Level 1 inputs as of June 30, 2019.

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).

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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.

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 June 30, 2019 in valuing the Funds’ investments:

Global Floating Rate Fund

DESCRIPTION	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL INVESTMENTS
Assets:
Equities:
Common Stocks	$	–	$	1,007,602	$	677,558	$	1,685,160
Preferred Stock		–		–		23,368		23,368
Warrants		–		4,886		–		4,886
Total Equities		–		1,012,488		700,926		1,713,414

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DESCRIPTION	LEVEL 1		LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Fixed Income:
Bank Loans	$	–	$	231,287,361		$	62,044	$	231,349,405
Corporate Bonds		–		26,057,801			0		26,057,801
Total Fixed Income		–		257,345,162			62,044		257,407,206
Derivative Securities:
Forward Foreign Currency Exchange Contracts		–		81,048			–		81,048
Total	$	–	$	258,438,698		$	762,970	$	259,201,668
Liabilities:
Derivative Securities:
Forward Foreign Currency Exchange Contracts		–		(102,331	)		–		(102,331	)
Total Investments	$	–	$	258,336,367		$	762,970	$	259,099,337

The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of June 30, 2019:

TYPE OF ASSETS	FAIR VALUE AS OF JUNE 30, 2019		VALUATION TECHNIQUE(S)	UNOBSERVABLE INPUT
Equities
CTI Foods Holding Co, LLC	$	512,659	Priced at cost	New security: Priced at cost
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	$	147,959	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5 year projection, 5.5x; EBITDA: $42.5 million; 15% discount rate
Templar Energy LLC	$	3,286	Broker Quote	$0.38: Price source depth of 1
Templar Energy LLC	$	13,654	Broker Quote	$2.25 Price source depth of 1
Pinnacle Agriculture Holdings A 2	$	23,368	Broker Quote	$0.09: Price source depth of 1
Bank Loans
Boomerang Tube LLC	$	62,044	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5 year projection, 5.5x; EBITDA: $42.5 million; 15% discount rate
Corporate Bonds
Appvion ESC	$	–	Zero Value	Valued at zero without primary asset attached

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.

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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, 2018		REALIZED GAIN (LOSS)			CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)			NET TRANSFERS IN (OUT) OF LEVEL 3***			ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES			BALANCE AS OF JUNE 30, 2019		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT JUNE 30, 2019
Equities
Common Stock	$	65,806	$			$	(35,913	)	$	(19,350	)	$		$	667,015	$			$	677,558	$	(35,913	)
Preferred Stock	$	238,876	$			$	(215,508	)	$			$		$		$			$	23,368	$	(215,508	)
Warrants	$	8,475	$			$	–		$	(8,475	)	$		$		$			$	–	$	–
Fixed Income
Bank Loans	$	206,150	$	(118,431	)	$	98,862		$	–		$	233	$	86,480	$	(211,250	)	$	62,044	$	98,862
Total	$	519,307	$	(118,431	)	$	(152,559	)	$	(27,825	)	$	233	$	753,495	$	(211,250	)	$	762,970	$	(152,559	)

*** Transfers in to Level 3 from Level 2 occurred because observable inputs were no longer available. Transfers out of Level 3 in to Level 2 occurred because observable inputs became available.

Global Credit Income Opportunities Fund

DESCRIPTION	LEVEL 1		LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Assets:
Equities:
Common Stocks	$	–	$	894,009		$	684,107	$	1,578,116
Preferred Stock		–		–			28,042		28,042
Warrants		–		305			–		305
Total Equities		–		894,314			712,149		1,606,463
Fixed Income:
Asset-Backed Securities		–		23,698,095			–		23,698,095
Bank Loans		–		84,733,142			496,463		85,229,605
Corporate Bonds		–		87,829,651			0		87,829,651
Total Fixed Income		–		196,260,888			496,463		196,757,351
Purchased Options:
Put Options Purchased		280,715		–			–		280,715
Total Purchased Options		280,715		–			–		280,715
Derivative Securities:
Forward Foreign Currency Exchange Contracts		–		94,580			–		94,580
Total	$	280,715	$	197,249,782		$	1,208,612	$	198,739,109
Liabilities:
Derivative Securities:
Forward Foreign Currency Exchange Contracts		–		(52,933	)		–		(52,933	)
Total Investments	$	280,715	$	197,196,849		$	1,208,612	$	198,686,176

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The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of June 30, 2019:

TYPE OF ASSETS	FAIR VALUE AS OF JUNE 30, 2019		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	$	147,959	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5 year projection, 5.5x; EBITDA: $42.5 million; 15% discount rate
Maxeda DIY B.V.	$	428,911	Market Comparables	LTM EBITDA €93m; Net leverage €453m; Average Comparable Valuation: 7.35X
Maxeda DIY B.V.	$	107,236	Market Comparables	LTM EBITDA €93m; Net leverage €453m; Average Comparable Valuation: 7.35X
Pinnacle Agriculture Holdings A 2	$	28,042	Broker Quote	$0.09: Price source depth of 1
Innovation Group	$	1	Priced at cost	Priced at cost
Bank Loans
Blue Mountain CLO Ltd.	$	–	Zero Value	Valued at zero until final accrual is received
Innovation Group PLC	$	72,366	Priced at cost	Priced at cost
Innovation Group PLC	$	264,519	Priced at cost	Priced at cost
Innovation Group PLC	$	35,210	Priced at cost	Priced at cost
Boomerang Tube LLC	$	124,368	Discounted Cash Flow	Average Enterprise Valuation Multiple: 5 year projection, 5.5x; EBITDA: $42.5 million; 15% discount rate

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, 2018		REALIZED GAIN (LOSS)		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)			NET TRANSFERS IN (OUT) OF LEVEL 3***		ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES		BALANCE AS OF JUNE 30, 2019		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT JUNE 30, 2019
Equities
Common Stock	$	550,622	$	–	$	(38,375	)	$	–	$	–	$	171,860	$	–	$	684,107	$	(38,375	)
Preferred Stock	$	286,651	$	–	$	(258,609	)	$	–	$	–	$	–	$	–	$	28,042	$	(258,609	)

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INVESTMENTS IN SECURITIES	BALANCE AS OF JULY 1, 2018		REALIZED GAIN (LOSS)			CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)			NET TRANSFERS IN (OUT) OF LEVEL 3***			ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES			BALANCE AS OF JUNE 30, 2019		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT JUNE 30, 2019
Fixed Income
Asset-Backed Securities	$	10,228,154	$	(258,232	)	$	(119,880	)	$	(6,978,772	)	$	1,791	$	–	$	(2,873,061	)	$	–	$	(119,880	)
Bank Loans	$	277,089	$	(118,458	)	$	92,281		$	–		$	6,345	$	530,009	$	(290,803	)	$	496,463	$	92,281
Total	$	11,342,516	$	(376,690	)	$	(324,583	)	$	(6,978,772	)	$	8,136	$	701,869	$	(3,163,864	)	$	1,208,612	$	(324,583	)

*** Transfers in to Level 3 from Level 2 occurred because observable inputs were no longer available. Transfers out of Level 3 in to Level 2 occurred because observable inputs became available.

Active Short Duration Bond Fund

DESCRIPTION	LEVEL 1			LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Assets:
Fixed Income:
Asset-Backed Securities	$	–		$	317,656,878		$	12,047,135	$	329,704,013
Corporate Bonds		–			247,698,431			–		247,698,431
Mortgage-Backed Securities		–			66,096,260			–		66,096,260
U.S. Treasury & Government Agencies		–			54,203,050			–		54,203,050
Total Fixed Income		–			685,654,619			12,047,135		697,701,754
Purchased Options:
Call Options Purchased		–			1,664,263			–		1,664,263
Put Options Purchased		–			2,175,671			–		2,175,671
Total Purchased Options		–			3,839,934			–		3,839,934
Short-Term Investments:
Commercial Paper		–			25,113,396			–		25,113,396
Total Short-Term Investments		–			25,113,396			–		25,113,396
Total	$	–		$	714,607,949		$	12,047,135	$	726,655,084
Liabilities:
Derivative Securities:
Centrally Cleared Interest Rate Swaps		–			(13,411	)		–		(13,411	)
Futures**		(3,469,720	)		–			–		(3,469,720	)
OTC – Credit Default Swaps		–			(52,074	)		–		(52,074	)
Total Derivative Securities		(3,469,720	)		(65,485	)		–		(3,535,205	)
Total Investments	$	(3,469,720	)	$	714,542,464		$	12,047,135	$	723,119,879

** 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.

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The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of June 30, 2019:

TYPE OF ASSETS	FAIR VALUE AS OF JUNE 30, 2019		VALUATION TECHNIQUE(S)	UNOBSERVABLE INPUT
Asset-Backed Securities
DRB Prime Student Loan Trust 2016-R A2	$	1,754,321	Broker Quote	$100.11: Price source depth of 1
SLM Student Loan Trust 2006-2	$	1,938,440	Broker Quote	$490: Price source depth of 1
SoFi Alternative Trust 2019-C	$	4,617,317	Priced at cost	Priced at trade cost
SoFi Professional Loan Program 2018-A	$	1,059,158	Broker Quote	$77.17: Price source depth of 1
SoFi Professional Loan Program 2018-B Trust	$	743,203	Broker Quote	$58.72: Price source depth of 1
SoFi Professional Loan Program 2018-D Trust	$	650,140	Broker Quote	$34.50: Price source depth of 1
SoFi Professional Loan Program 2019-A LLC	$	1,017,931	Broker Quote	$28.89: Price source depth of 1
SoFi Consumer Loan Program LLC 2015-A RC	$	266,625	Broker Quote	$88,875.00: 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, 2018		REALIZED GAIN (LOSS)		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)		NET TRANSFERS IN (OUT) OF LEVEL 3***			ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES			BALANCE AS OF JUNE 30, 2019		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT JUNE 30, 2019
Asset–Backed Securities	$	4,347,527	$	374	$	165,218	$	(2,198,101	)	$	65,065	$	9,876,845	$	(209,793	)	$	12,047,135	$	165,218
Mortgage–Backed Securities	$	564,478	$	–	$	–	$	(564,478	)	$	–	$	–	$	–		$	–	$	–
Total	$	4,912,005	$	374	$	165,218	$	(2,762,579	)	$	65,065	$	9,876,845	$	(209,793	)	$	12,047,135	$	165,218

*** Transfers in to Level 3 from Level 2 occurred because observable inputs were no longer available. Transfers out of Level 3 in to Level 2 occurred because observable inputs became available.

Diversified Income Fund (Formerly Total Return Bond Fund)

DESCRIPTION	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL INVESTMENTS
Assets:
Fixed Income:
Asset-Backed Securities	$	–	$	23,148,091	$	799,990	$	23,948,081
Corporate Bonds		–		14,637,575		–		14,637,575
Mortgage-Backed Securities		–		2,676,040		–		2,676,040
U.S. Treasury & Government Agencies		–		303,750		–		303,750
Total Fixed Income		–		40,765,456		799,990		41,565,446

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DESCRIPTION	LEVEL 1			LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Short-Term Investments:
Commercial Paper	$	–		$	1,598,313		$	–	$	1,598,313
Total Short-Term Investments		–			1,598,313			–		1,598,313
Derivative Securities:
Forward Foreign Currency Exchange Contracts		–			4,206			–		4,206
Total	$	–		$	42,367,975		$	799,990	$	43,167,965
Liabilities:
Derivative Securities:
Forward Foreign Currency Exchange Contracts		–			(24,128	)		–		(24,128	)
Futures**		(184,169	)		–			–		(184,169	)
OTC – Credit Default Swaps		–			(13,018	)		–		(13,018	)
Total Derivative Securities		(184,169	)		(37,146	)		–		(221,315	)
Total Investments	$	(184,169	)	$	42,330,829		$	799,990	$	42,946,650

** 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 June 30, 2019:

TYPE OF ASSETS	FAIR VALUE AS OF JUNE 30, 2019		VALUATION TECHNIQUE(S)	UNOBSERVABLE INPUT
Asset-Backed Securities
Horizon Aircraft Finance II Ltd.	$	299,990	Priced at cost	Priced at trade cost
Riserva CLO Ltd.	$	500,000	Priced at cost	Priced at trade cost

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, 2018		REALIZED GAIN (LOSS)		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)			NET TRANSFERS IN (OUT) OF LEVEL 3***			ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES			BALANCE AS OF JUNE 30, 2019		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT JUNE 30, 2019
Asset Backed Securities	$	163,761	$	4	$	(1,250	)	$	(38,700	)	$	15	$	799,990	$	(123,830	)	$	799,990	$	(1,250	)
Total	$	163,761	$	4	$	(1,250	)	$	(38,700	)	$	15	$	799,990	$	(123,830	)	$	799,990	$	(1,250	)

*** Transfers in to Level 3 from Level 2 occurred because observable inputs were no longer available. Transfers out of Level 3 in to Level 2 occurred because observable inputs became available.

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Emerging Markets Debt Blended Total Return Fund

DESCRIPTION	LEVEL 1			LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Assets:*
Fixed Income:
Corporate Bonds	$	–		$	19,805,553		$	–	$	19,805,553
Foreign Government		–			29,214,506			–		29,214,506
Total Fixed Income		–			49,020,059			–		49,020,059
Purchased Option:
Put Option Purchased		–			13,031			–		13,031
Derivative Securities:
Centrally Cleared Interest Rate Swaps		–			25,533			–		25,533
Forward Foreign Currency Exchange Contracts		–			592,913			–		592,913
OTC – Credit Default Swaps		–			74,233			–		74,233
OTC – Cross Currency Swaps		–			94,625			–		94,625
OTC – Interest Rate Swaps		–			244,543			–		244,543
Total Derivative Securities		–			1,031,847			–		1,031,847
Total	$	–		$	50,064,937		$	–	$	50,064,937
Liabilities:*
Derivative Securities:
Centrally Cleared Interest Rate Swaps		–			(327,497	)		–		(327,497	)
Forward Foreign Currency Exchange Contracts		–			(510,556	)		–		(510,556	)
Futures**		(71,794	)		–			–		(71,794	)
OTC – Credit Default Swaps		–			(30,300	)		–		(30,300	)
OTC – Cross Currency Swaps		–			(11,915	)		–		(11,915	)
OTC – Interest Rate Swaps		–			(634,186	)		–		(634,186	)
Total Derivative Securities		(71,794	)		(1,514,454	)		–		(1,586,248	)
Total Investments	$	(71,794	)	$	48,550,483		$	–	$	48,478,689

* There were no transfers between levels during the year ended June 30, 2019.

** 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.

Global Emerging Markets Equity Fund

DESCRIPTION	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL INVESTMENTS
Assets:*
Equities:
Common Stocks	$	7,404,338	$	2,565,219	$	–	$	9,969,557
Total Equities		7,404,338		2,565,219		–		9,969,557
Mutual Fund:
Mutual Fund		391,159		–		–		391,159
Total	$	7,795,497	$	2,565,219	$	–	$	10,360,716
Total Investments	$	7,795,497	$	2,565,219	$	–	$	10,360,716

* There were no transfers between levels during the year ended June 30, 2019.

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Global High Yield Fund

DESCRIPTION	LEVEL 1		LEVEL 2			LEVEL 3		TOTAL INVESTMENTS
Assets:*
Equities:
Common Stock	$	–	$	88,179		$	–	$	88,179
Warrants		–		199			–		199
Total Equities		–		88,378			–		88,378
Fixed Income:
Bank Loans		–		2,062,669			–		2,062,669
Corporate Bonds		–		24,545,633			0		24,545,633
Total Fixed Income		–		26,608,302			0		26,608,302
Derivative Securities:
Forward Foreign Currency Exchange Contracts		–		883			–		883
Total	$	–	$	26,697,563		$	–	$	26,697,563
Liabilities:*
Derivative Securities:
Forward Foreign Currency Exchange Contracts		–		(77,016	)		–		(77,016	)
Total Investments	$	–	$	26,620,547		$	0	$	26,620,547

* There were no transfers between levels during the year ended June 30, 2019.

The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of June 30, 2019:

TYPE OF ASSETS	FAIR VALUE AS OF JUNE 30, 2019		VALUATION TECHNIQUE(S)	UNOBSERVABLE INPUT
Corporate Bonds
Appvion ESC	$	–	Zero Value	Priced at zero value

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, 2018		REALIZED GAIN (LOSS)	CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)			NET TRANSFERS IN (OUT) OF LEVEL 3	ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES	BALANCE AS OF JUNE 30, 2019		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT JUNE 30, 2019
Fixed Income
Corporate Bonds	$	–	$	$	(275,264	)	$	$	38,340	$	236,924	$	$	–	$	(275,964	)
Total	$	–	$	$	(275,264	)	$	$	38,340	$	236,924	$	$	–	$	(275,964	)

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U.S. High Yield Fund

DESCRIPTION	LEVEL 1		LEVEL 2		LEVEL 3		TOTAL INVESTMENTS
Assets:
Equities:
Common Stocks	$	–	$	257,469	$	–	$	257,469
Warrants		–		223		–		223
Total Equities		–		257,692		–		257,692
Fixed Income:
Bank Loans		–		4,081,290		–		4,081,290
Corporate Bonds		–		45,191,397		0		45,191,397
Total Fixed Income		–		49,272,687		0		49,272,687
Total	$	–	$	49,530,379	$	–	$	49,530,379
Total Investments	$	–	$	49,530,379	$	0	$	49,530,379

The following table is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurement for investments held as of June 30, 2019:

TYPE OF ASSETS	FAIR VALUE AS OF JUNE 30, 2019		VALUATION TECHNIQUE(S)	UNOBSERVABLE INPUT
Corporate Bonds
Appvion ESC	$	–	Zero Value	Priced at zero value

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, 2018		REALIZED GAIN (LOSS)	CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION)			NET TRANSFERS IN (OUT) OF LEVEL 3	ACCRUED PREMIUMS/ DISCOUNTS		PURCHASES		SALES	BALANCE AS OF JUNE 30, 2019		CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) FROM INVESTMENTS HELD AT JUNE 30, 2019
Fixed Income
Corporate Bonds	$	–	$	$	(308,123	)	$	$	42,894	$	265,229	$	$	–	$	(308,123	)
Total	$	–	$	$	(308,123	)	$	$	42,894	$	265,229	$	$	–	$	(308,123	)

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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June 30, 2019

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 June 30, 2019, 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.

In March 2017, FASB issued Accounting Standards Update No. 2017-08 “Premium Amortization of Purchased Callable Debt Securities”, which amends the amortization period for certain purchased callable debt securities. Under the standards update, the premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently evaluating the impact of this standard’s update to the Funds.

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 June 30, 2019, 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.

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June 30, 2019

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 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 June 30, 2019, the Funds had no 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

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June 30, 2019

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 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

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June 30, 2019

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 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 Diversified Income 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,

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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 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 June 30, 2019, 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 June 30, 2019:

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	$	81,048
Total			$	81,048
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	$	(102,331	)
Total			$	(102,331	)

Global Credit Income Opportunities Fund

ASSET DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION		FOREIGN EXCHANGE CONTRACTS RISK		EQUITY RISK		TOTAL
Forward Foreign Currency Exchange Contracts		Unrealized appreciation on forward foreign currency exchange contracts	$	94,580	$	–	$	94,580
Purchased Options		Investments, at fair value		–		280,715		280,715
Total			$	94,580	$	280,715	$	375,295

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LIABILITY DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION		FOREIGN EXCHANGE CONTRACTS RISK			EQUITY RISK		TOTAL
Forward Foreign Currency Exchange Contracts		Unrealized depreciation on forward foreign currency exchange contracts	$	(52,933	)	$	–	$	(52,933	)
Total			$	(52,933	)	$	–	$	(52,933	)

Active Short Duration Bond Fund

ASSET DERIVATIVES	STATEMENTS OF ASSETS AND LIABILITIES LOCATION		INTEREST RATE RISK		CREDIT RISK		TOTAL
Purchased Options		Investments, at fair value	$	3,839,934	$	–	$	3,839,934
Total			$	3,839,934	$	–	$	3,839,934

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.	$	(3,469,720	)	$	–		$	(3,469,720	)
OTC – Swaps Contracts		Swap contracts, at fair value		–			(52,074	)		(52,074	)
Centrally Cleared Interest Rate Swap Contracts		Includes cumulative unrealized appreciation/ depreciation of swap contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.		(13,411	)		–			(13,411	)
Total			$	(3,483,131	)	$	(52,074	)	$	(3,535,205	)

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Diversified Income Fund (Formerly 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	$	4,206	$	–	$	–	$	4,206
Total			$	4,206	$	–	$		$	4,206

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	$	(24,128	)	$	–			$		$	(24,128	)
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.		–			(184,169	)		–			(184,169	)
OTC – Swaps Contracts		Swap contracts, at fair value		–			–			(13,018	)		(13,018	)
Total			$	(24,128	)	$	(184,169	)	$	(13,018	)	$	(221,315	)

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	$	592,913	$	–	$	–	$	592,913
Purchased Options		Investments, at fair value		13,031		–		–		13,031
OTC – Swaps Contracts		Swap contracts, at fair value		94,625		244,543		74,233		413,401
Centrally Cleared Interest Rate Swap Contracts		Includes cumulative unrealized appreciation/ depreciation of swap contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.		–		25,533		–		25,533
Total			$	700,569	$	244,543	$	74,233	$	1,019,345

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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	$	(510,556	)	$	–		$	–		$	(510,556	)
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.		–			(71,794	)		–			(71,794	)
OTC – Swaps Contracts		Swap contracts, at fair value		(11,915	)		(634,186	)		(30,300	)		(676,401	)
Centrally Cleared Interest Rate Swaps		Includes cumulative unrealized appreciation/ depreciation of swap contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.		–			(327,497	)		–			(327,497	)
Total			$	(522,471	)	$	(1,033,477	)	$	(30,300	)	$	(1,586,248	)

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	$	883
Total			$	883

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	$	(77,016	)
Total			$	(77,016	)

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Amount of Realized Gain/(Loss) on Derivatives:

Global Floating Rate Fund

	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts	$	4,813,881
Total	$	4,813,881

Global Credit Income Opportunities Fund

	FOREIGN EXCHANGE CONTRACTS RISK		EQUITY RISK			TOTAL
Forward Foreign Currency Exchange Contracts	$	3,669,530	$	–		$	3,669,530
Purchased Options		–		(511,938	)		(511,938	)
Total	$	3,669,530	$	(511,938	)	$	3,157,592

Active Short Duration Bond Fund

	INTEREST RATE RISK			CREDIT RISK		TOTAL
Futures Contracts	$	(4,665,303	)	$	–	$	(4,665,303	)
Swaps Contracts		–			135,318		135,318
Total	$	(4,665,303	)	$	135,318	$	(4,529,985	)

Diversified Income Fund (Formerly Total Return Bond Fund)

	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK			CREDIT RISK		TOTAL
Forward Foreign Currency Exchange Contracts	$	(10,209	)	$	–		$	–	$	(10,209	)
Futures Contracts		–			(258,075	)		–		(258,075	)
Purchased Options		–			3,709			–		3,709
Swaps Contracts		–			–			13,397		13,397
Total	$	(10,209	)	$	(254,366	)	$	13,397	$	(251,178	)

Emerging Markets Debt Blended Total Return Fund

	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK			CREDIT RISK		TOTAL
Forward Foreign Currency Exchange Contracts	$	(626,857	)	$	–		$	–	$	(626,857	)
Futures Contracts		–			(90,314	)		–		(90,314	)
Purchased Options		18,025			–			–		18,025
Swaps Contracts		63,658			303,699			304,752		672,109
Total	$	(545,174	)	$	213,385		$	304,752	$	(27,037	)

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June 30, 2019

Global High Yield Fund

	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts	$	484,537
Total	$	484,537

Change in Unrealized Appreciation/(Depreciation) on Derivatives:

Global Floating Rate Fund

	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts	$	(650,658	)
Total	$	(650,658	)

Global Credit Income Opportunities Fund

	FOREIGN EXCHANGE CONTRACTS RISK			EQUITY RISK			TOTAL
Forward Foreign Currency Exchange Contracts	$	(774,111	)	$			$	(774,111	)
Purchased Options		–			(150,723	)		(150,723	)
Total	$	(774,111	)	$	(150,723	)	$	(924,834	)

Active Short Duration Bond Fund

	INTEREST RATE RISK			CREDIT RISK		TOTAL
Futures Contracts	$	(3,081,643	)	$	–	$	(3,081,643	)
Purchased Options		6,168			–		6,168
Swaps Contracts		(13,411	)		1,412		(11,999	)
Total	$	(3,088,886	)	$	1,412	$	(3,087,474	)

Diversified Income Fund (Formerly Total Return Bond Fund)

	FOREIGN EXCHANGE CONTRACTS RISK		INTEREST RATE RISK			CREDIT RISK		TOTAL
Forward Foreign Currency Exchange Contracts	$	3,054	$	–		$	–	$	3,054
Futures Contracts		–		(259,179	)		–		(259,179	)
Purchased Options		–		(3,797	)		–		(3,797	)
Swaps Contracts		–		–			358		358
Total	$	3,054	$	(262,976	)	$	358	$	(259,564	)

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Emerging Markets Debt Blended Total Return Fund

	FOREIGN EXCHANGE CONTRACTS RISK			INTEREST RATE RISK			CREDIT RISK		TOTAL
Forward Foreign Currency Exchange Contracts	$	639,745		$			$	–	$	639,745
Futures Contracts		–			(29,220	)		–		(29,220	)
Purchased Options		(37,731	)		–			–		(37,731	)
Swaps Contracts		64,532			(817,770	)		114,200		(639,038	)
Total	$	666,546		$	(846,990	)	$	114,200	$	(66,244	)

Global High Yield Fund

	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts	$	(122,031	)
Total	$	(122,031	)

Global Floating Rate Fund

NUMBER OF CONTRACTS, NOTIONAL AMOUNTS OF SHARES/UNITS	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts(1)	$	83,520,892

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

Global Credit Income Opportunities Fund

	FOREIGN EXCHANGE CONTRACTS RISK		EQUITY RISK		TOTAL
Forward Foreign Currency Exchange Contracts(1)	$	68,046,707	$	–	$	68,046,707
Purchased Options(1)	$	–	$	5,376	$	5,376

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

Active Short Duration Bond Fund

NUMBER OF CONTRACTS, NOTIONAL AMOUNTS OF SHARES/UNITS	INTEREST RATE RISK		CREDIT RISK		TOTAL
Futures Contracts(1)		2,045		–		2,045
Purchased Options(2)	$	77,660,000	$	–	$	77,660,000
OTC – Swaps Contracts(2)	$	–	$	520,000	$	520,000
Centrally Cleared Swap Contracts(2)	$	2,600,000	$	–	$	2,600,000

(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.

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Diversified Income Fund (Formerly Total Return Bond Fund)

NUMBER OF CONTRACTS, NOTIONAL AMOUNTS OF SHARES/UNITS	FOREIGN EXCHANGE CONTRACTS RISK		INTEREST RATE RISK		CREDIT RISK		TOTAL
Futures Contracts(1)		–		84		–		84
Forward Foreign Currency Exchange Contracts(2)	$	1,516,602	$	–	$	–	$	1,516,602
Purchased Options(2)	$	–	$	7,950,000	$	–	$	7,950,000
OTC – Swaps Contracts(2)	$	–	$	–	$	159,167	$	159,167
Centrally Cleared Swap Contracts(2)	$	–	$	–	$	–	$	–

(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.

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
Futures Contracts(1)		–		8		–		8
Forward Foreign Currency Exchange Contracts(2)	$	60,220,589	$	–	$	–	$	60,220,589
Purchased Options(2)	$	5,218,333	$	–	$	–	$	5,218,333
OTC – Swaps Contracts(2)	$	2,371,395	$	251,864,400	$	9,041,667	$	263,277,462
Centrally Cleared Swap Contracts(2)	$	–	$	22,767,964	$	–	$	22,767,964

(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.

Global High Yield Fund

NUMBER OF CONTRACTS, NOTIONAL AMOUNTS OF SHARES/UNITS	FOREIGN EXCHANGE CONTRACTS RISK
Forward Foreign Currency Exchange Contracts(1)	$	8,133,442

(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

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

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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.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty.

Cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately on the Statement of Assets and Liabilities as cash collateral held at broker or cash collateral due to broker, respectively. Non-cash collateral pledged by or received by the Funds, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold before a transfer is required, which is determined each day at the close of business of the Funds, typically based on changes in market values for each transaction under an ISDA Master Agreement and netted into one amount for such agreement and any additional required collateral is delivered to/pledged by the Funds on the next business day. Typically, the Funds and counterparties are not permitted to sell, re-pledge or use the collateral they receive. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by entering into agreements only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

The following tables illustrate gross and net information about recognized assets eligible for offset in the Statement of Assets and Liabilities, and disclose such amounts subject to an enforceable master netting agreement or similar agreement, by counterparty. A master netting agreement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as cash collateral, through a single payment in the event of default on or termination of any one contract:

Global Floating Rate Fund

DESCRIPTION	GROSS AMOUNTS OF RECOGNIZED ASSETS		GROSS AMOUNTS OFFSET IN THE STATEMENTS OF ASSETS AND LIABILITIES		NET AMOUNTS OF ASSETS PRESENTED IN THE STATEMENTS OF ASSETS AND LIABILITIES
Forward Foreign Currency Exchange Contracts	$	81,048	$	–	$	81,048
Total	$	81,048	$	–	$	81,048

			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)
Morgan Stanley & Co.	$	81,048	$	(81,048	)	$	–	$	–
Total	$	81,048	$	(81,048	)	$	–	$	–

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2019.

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June 30, 2019

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	$	102,331	$	–	$	102,331
Total	$	102,331	$	–	$	102,331

			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	$	2,597	$	–		$	–	$	2,597
Morgan Stanley & Co.		99,734		(81,048	)		–		18,686
Total		$102,331	$	(81,048	)	$	–	$	21,283

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2019.

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	$	94,580	$	–	$	94,580
Total	$	94,580	$	–	$	94,580

			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)
Citibank N.A.	$	94,580	$	(52,933	)	$	–	$	41,647
Total	$	94,580	$	(52,933	)	$	–	$	41,647

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2019.

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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	$	52,933	$	–	$	52,933
Total	$	52,933	$	–	$	52,933

			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)
Citibank N.A.	$	52,933	$	(52,933	)	$	–	$	–
Total	$	52,933	$	(52,933	)	$	–	$	–

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2019.

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	$	3,839,934	$	–	$	3,839,934
Total	$	3,839,934	$	–	$	3,839,934

			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.	$	3,839,934	$	(23,033	)	$	(3,740,000	)	$	76,901
Total	$	3,839,934	$	(23,033	)	$	(3,740,000	)	$	76,901

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2019.

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June 30, 2019

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	$	52,074	$	–	$	52,074
Total	$	52,074	$	–	$	52,074

			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.	$	29,041	$	–		$	–	$	29,041
JPMorgan Chase Bank N.A.		23,033		(23,033	)		–		–
Total	$	52,074	$	(23,033	)	$	–	$	29,041

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2019.

Diversified Income Fund (Formerly 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	$	4,206	$	–	$	4,206
Total	$	4,206	$	–	$	4,206

			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.	$	56	$	(55	)	$	–	$	1
Barclays Bank plc		1,555		(1,555	)		–		–
JPMorgan Chase Bank N.A.		255		(255	)		–		–
BNP Paribas S.A.		2,340		(2,340	)		–		–
Total	$	4,206	$	(4,205	)	$	–	$	1

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2019.

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June 30, 2019

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	$	24,128	$	–	$	24,128
Swap Contracts		13,018		–		13,018
Total	$	37,146	$	–	$	37,146

			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.	$	55	$	(55	)	$	–	$	–
Barclays Bank plc		21,478		(1,555	)		–		19,923
Goldman Sachs & Co.		7,010		–			–		7,010
JPMorgan Chase Bank N.A.		6,263		(255	)		–		6,008
BNP Paribas S.A.		2,340		(2,340	)		–		–
Total	$	37,146	$	(4,205	)	$	–	$	32,941

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2019.

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	$	592,913	$	–	$	592,913
Purchased Options		13,031		–		13,031
Swap Contracts		413,401		–		413,401
Total	$	1,019,345	$	–	$	1,019,345

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June 30, 2019

			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.	$	381,680	$	(381,680	)	$	–	$	–
Barclays Bank plc		122,849		(42,206	)		–		80,643
BNP Paribas S.A.		131,441		(131,441	)		–		–
Citibank N.A.		174,405		(174,405	)		–		–
Goldman Sachs & Co.		69,319		(12,141	)		–		57,178
JPMorgan Chase Bank N.A.		139,651		(53,730	)		–		85,921
Total	$	1,019,345	$	(795,603	)	$	–	$	223,742

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2019.

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	$	510,556	$	–	$	510,556
Swap Contracts		676,401		–		676,401
Total	$	1,186,957	$	–	$	1,186,957

			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.	$	517,272	$	(381,680	)	$	–		$	135,592
Barclays Bank plc		42,206		(42,206	)		–			–
BNP Paribas S.A.		327,872		(131,441	)		(196,431	)		–
Citibank N.A.		231,719		(174,405	)		–			57,314
Goldman Sachs & Co.		12,141		(12,141	)		–			–
JPMorgan Chase Bank N.A.		53,730		(53,730	)		–			–
Morgan Stanley & Co.		2,017		–			–			2,017
Total	$	1,186,957	$	(795,603	)	$	(196,431	)	$	194,923

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2019.

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June 30, 2019

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	$	883	$	–	$	883
Total	$	883	$	–	$	883

			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.	$	215	$	(215	)	$	–	$	–
Barclays Bank plc		165		(165	)		–		–
BNP Paribas S.A.		107		(107	)		–		–
Citibank N.A.		396		–			–		396
Total	$	883	$	(487	)	$	–	$	396

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2019.

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	$	77,016	$	–	$	77,016
Total	$	77,016	$	–	$	77,016

			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.	$	61,754	$	(215	)	$	–	$	61,539
Barclays Bank plc		185		(165	)		–		20
BNP Paribas S.A.		15,077		(107	)		–		14,970
Total	$	77,016	$	(487	)	$	–	$	76,529

(a) Collateral disclosed is limited to an amount not to exceed 100% of the net amount of assets presented in the Statements of Assets and Liabilities, for each respective counterparty.

(b) Net Amount represents the amount that is subject to loss in the event of a counterparty failure as of June 30, 2019.

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June 30, 2019

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
Diversified Income Fund	0.40% of average daily net assets
Emerging Markets Debt Blended Total Return Fund	0.75% of average daily net assets
Global Emerging Markets Equity Fund	0.90% 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	%
Diversified Income Fund		0.80	%		1.55	%		0.55	%		0.55	%
Emerging Markets Debt Blended Total Return Fund		1.20	%		1.95	%		0.95	%		0.95	%
Global Emerging Markets Equity Fund		1.45	%		2.20	%		1.20	%		1.20	%
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

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June 30, 2019

such fee waivers and expense reimbursements, to the 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, 2019 and may be terminated only upon the approval of the Funds’ Board of Trustees.

Subject to the supervision of the Adviser and the Board, BIIL 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, Global Emerging Markets Equity Fund and Global High Yield Fund, as allocated from time to time to BIIL. As compensation for its services, the Adviser (not the Funds) pays to BIIL 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	0.35	%
Global Credit Income Opportunities Fund	0.35	%
Emerging Markets Debt Blended Total Return Fund	0.50	%
Global Emerging Markets Equity Fund	0.70	%
Global High Yield Fund	0.35	%

The Adviser or its affiliates voluntarily agreed to waive certain fees for the Global Floating Rate Fund, the Active Short Duration Bond Fund, the Diversified Income Fund and the Emerging Markets Debt Blended Total Return Fund. Such arrangements may be discontinued by the Adviser at any time. For the year ended June 30, 2019, the amounts of the waivers were $905, $1,176, $291 and $107,226, respectively.

4. 12b-1 Distribution and Service Plan

ALPS Distributors, Inc. (the “Distributor”) is the Distributor of the Funds’ shares as of June 30, 2019.

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 Board’s members and a majority of the Board’s 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 year ended June 30, 2019, 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 A		CLASS C
Global Floating Rate Fund	$	–	$	401
Global Credit Income Opportunities Fund		–		63

For the year ended June 30, 2019, 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	$	1,635	$	45,466
Global Credit Income Opportunities Fund		873		123,901
Active Short Duration Bond Fund		–		3,882
Diversified Income Fund		246		1,493
Emerging Markets Debt Blended Total Return Fund		–		260
Global High Yield Fund		588		4,572
U.S. High Yield Fund		9		63

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. For these services, the Funds have agreed to pay SSB fees payable at the end of each

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June 30, 2019

calendar month pursuant to an agreement between SSB and the Funds. For the year ended June 30, 2019, the aggregate effective fee for the services 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	0.14	%
Global Credit Income Opportunities Fund	0.15	%
Active Short Duration Bond Fund	0.12	%
Diversified Income Fund	0.30	%
Emerging Markets Debt Blended Total Return Fund	0.28	%
Global Emerging Markets Equity Fund	0.53	%
Global High Yield Fund	0.29	%
U.S. High Yield Fund	0.21	%

The Funds have engaged ALPS Fund Services, Inc. (“ALPS”) to serve as the Funds’ transfer agent. For these services, the Funds have agreed to pay ALPS fees payable at the end of each calendar month pursuant to an

agreement between ALPS and the Funds. For the year ended June 30, 2019, the 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	0.02	%
Global Credit Income Opportunities Fund	0.02	%
Active Short Duration Bond Fund	0.02	%
Diversified Income Fund	0.06	%
Emerging Markets Debt Blended Total Return Fund	0.06	%
Global Emerging Markets Equity Fund	0.17	%
Global High Yield Fund	0.09	%
U.S. High Yield Fund	0.04	%

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, 2019 was as follows:

	ORDINARY INCOME		NET LONG-TERM CAPITAL GAINS		RETURN OF CAPITAL		TOTAL DISTRIBUTIONS PAID
Global Floating Rate Fund	$	15,249,263	$	391,463	$	–	$	15,640,726
Global Credit Income Opportunities Fund		12,750,860		1,517,782		263,953		14,532,595
Active Short Duration Bond Fund		15,755,535		520,666		–		16,276,201
Diversified Income Fund		1,104,402		–		–		1,104,402
Emerging Markets Debt Blended Total Return Fund		2,816,937		–		263,192		3,080,129
Global Emerging Markets Equity Fund		–		–		–		–
Global High Yield Fund		1,689,662		429,794		–		2,119,456
U.S. High Yield Fund		3,321,860		–		–		3,321,860

The tax character of dividends paid to shareholders during the tax year ended June 30, 2018 was as follows:

	ORDINARY INCOME		NET LONG-TERM CAPITAL GAINS		RETURN OF CAPITAL		TOTAL DISTRIBUTIONS PAID
Global Floating Rate Fund	$	8,591,381	$	–	$	1,171,303	$	9,762,684
Global Credit Income Opportunities Fund		9,089,382		–		496,307		9,585,689
Active Short Duration Bond Fund		9,664,909		902,028		–		10,566,937
Diversified Income Fund		976,520		–		33,503		1,010,023
Emerging Markets Debt Blended Total Return Fund		1,342,816		145,149		–		1,487,965
Global High Yield Fund		2,242,682		57,003		–		2,299,685
U.S. High Yield Fund		2,968,418		248,263		–		3,216,681

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June 30, 2019

As of June 30, 2019, the components of distributable earnings on a tax-basis were as follows:

	UNDISTRIBUTED ORDINARY INCOME		UNDISTRIBUTED LONG-TERM CAPITAL GAINS		LATE YEAR ORDINARY AND POST OCTOBER CAPITAL LOSS DEFERRALS			CAPITAL LOSS CARRYFORWARDS			UNREALIZED APPRECIATION (DEPRECIATION)			TOTAL DISTRIBUTABLE EARNINGS (ACCUMULATED LOSS)
Global Floating Rate Fund	$	360,764	$	411,459	$	(1,407,155	)	$	–		$	(11,970,028	)	$	(12,604,960	)
Global Credit Income Opportunities Fund		–		–		(4,562,833	)		–			(10,676,275	)		(15,239,108	)
Active Short Duration Bond Fund		392,244		–		–			(8,173,460	)		8,493,599			712,383
Diversified Income Fund		28,171		–		(374,581	)		(524,747	)		459,141			(412,016	)
Emerging Markets Debt Blended Total Return Fund		–		–		(830,972	)		(919,087	)		586,865			(1,163,194	)
Global Emerging Markets Equity Fund		133,266		15,187		–			–			976,638			1,125,091
Global High Yield Fund		121,011		–		(130,619	)		–			(1,093,557	)		(1,103,165	)
U.S. High Yield Fund		126,096		–		(468,214	)		(76,546	)		(613,144	)		(1,031,808	)

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.

On June 30, 2019, the following funds had capital loss carryforwards available to be offset against future net capital gains as follows:

	UNLIMITED - SHORT TERM		UNLIMITED - LONG TERM
Diversified Income Fund	$	385,896	$	138,851
Emerging Markets Debt Blended Total Return Fund		919,087		—
U.S. High Yield Fund		76,546		—

Under current tax rules, regulated investment companies can elect to treat certain late-year ordinary losses incurred and post-October capital losses (capital losses realized after October 31) as arising on the first day of the following taxable year. As of June 30, 2019, Global Floating Rate Fund, Global Credit Income Opportunities Fund and Emerging Markets Debt Blended Total Return Fund incurred late-year ordinary losses of $1,407,155, $715,777 and $459,719, respectively. As of June 30, 2019, Global Credit Income Opportunities Fund, Active Short Duration Bond Fund, Diversified Income Fund, Emerging Markets Debt Blended Total Return Fund, Global High Yield Fund and U.S. High Yield Fund have elected to defer current year post-October losses of $3,847,056, $8,173,460, $374,581, $371,253, $130,619, and $468,214, respectively.

Global Floating Rate Fund and Global Credit Income Opportunities Fund utilized $1,502,281 and $56,730 of capital loss carryforwards, respectively, during the year ended June 30, 2019.

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NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 2019

As of June 30, 2019, 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	$	271,074,642	$	1,059,341	$	(13,013,363	)	$	(11,954,022	)
Global Credit Income Opportunities Fund		209,425,157		2,155,786		(12,936,414	)		(10,780,628	)
Active Short Duration Bond Fund		718,148,074		10,308,803		(1,801,793	)		8,507,010
Diversified Income Fund		42,702,545		500,640		(39,426	)		461,214
Emerging Markets Debt Blended Total Return Fund		47,827,658		1,961,601		(756,169	)		1,205,432
Global Emerging Markets Equity Fund		9,384,191		1,293,879		(317,354	)		976,525
Global High Yield Fund		27,788,536		488,793		(1,580,649	)		(1,091,856	)
U.S. High Yield Fund		50,143,523		1,286,163		(1,899,307	)		(613,144	)

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

Permanent items identified during the year ended June 30, 2019 have been reclassified among the components of net assets based on their tax basis treatment as follows:

	TOTAL ACCUMULATED LOSS		PAID-IN CAPITAL
Global Emerging Markets Equity Fund	$	248	$	(248	)

The permanent differences are primarily attributable to non-deductible organization expense.

8. Investment Transactions

Purchases and sales of securities (excluding short-term securities) for the year ended June 30, 2019 were as follows:

	PURCHASES		SALES		GOVERNMENT PURCHASES		GOVERNMENT SALES
Global Floating Rate Fund	$	155,768,276	$	126,988,969	$	–	$	–
Global Credit Income Opportunities Fund		118,963,728		124,444,897		–		–
Active Short Duration Bond Fund		389,408,863		153,848,825		114,200,286		70,054,582
Diversified Income Fund		53,927,308		34,203,040		18,091,940		23,837,891
Emerging Markets Debt Blended Total Return Fund		42,511,831		39,985,979		–		–
Global Emerging Markets Equity Fund		10,045,590		738,059		–		–
Global High Yield Fund		19,458,312		16,323,605		–		–
U.S. High Yield Fund		28,555,541		31,988,900		–		–

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NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 2019

9. Common Stock

Transactions in common stock for the years ended June 30, 2019 and June 30, 2018 were as follows:

Global Floating Rate Fund

	FOR THE YEAR ENDED JUNE 30, 2019						FOR THE YEAR ENDED JUNE 30, 2018
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		618,513		$	5,784,016			1,667,532		$	15,918,813
Shares sold through reinvestments of distributions		279,598			2,606,921			243,001			2,317,457
Shares redeemed		(1,640,608	)		(15,271,436	)		(1,036,759	)		(9,887,519	)
Net increase (decrease)		(742,497	)	$	(6,880,499	)		873,774		$	8,348,751
CLASS C
Shares sold		208,023		$	1,965,179			185,281		$	1,760,750
Shares sold through reinvestments of distributions		41,472			384,747			29,111			276,669
Shares redeemed		(260,855	)		(2,432,322	)		(178,196	)		(1,693,674	)
Net increase (decrease)		(11,360	)	$	(82,396	)		36,196		$	343,745
CLASS I
Shares sold		3,057,892		$	29,141,715			575,961		$	5,511,861
Shares sold through reinvestments of distributions		183,732			1,713,816			100,453			960,046
Shares redeemed		(1,667,311	)		(15,786,911	)		(807,441	)		(7,709,995	)
Net increase (decrease)		1,574,313		$	15,068,620			(131,027	)	$	(1,238,088	)
CLASS Y
Shares sold		15,302,189		$	144,205,728			9,320,803		$	89,015,823
Shares sold through reinvestments of distributions		811,024			7,572,102			568,316			5,429,194
Shares redeemed		(14,030,191	)		(131,010,360	)		(4,547,811	)		(43,466,701	)
Net increase		2,083,022		$	20,767,470			5,341,308		$	50,978,316

Global Credit Income Opportunities Fund

	FOR THE YEAR ENDED JUNE 30, 2019						FOR THE YEAR ENDED JUNE 30, 2018
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		1,398,672		$	12,824,235			4,878,668		$	45,886,717
Shares sold through reinvestments of distributions		397,695			3,583,380			185,198			1,746,315
Shares redeemed		(2,555,445	)		(22,815,351	)		(1,400,679	)		(13,240,661	)
Net increase (decrease)		(759,078	)	$	(6,407,736	)		3,663,187		$	34,392,371
CLASS C
Shares sold		221,588		$	2,019,448			371,526		$	3,505,551
Shares sold through reinvestments of distributions		52,350			470,536			30,456			286,954
Shares redeemed		(275,165	)		(2,472,862	)		(150,027	)		(1,414,034	)
Net increase (decrease)		(1,227	)	$	17,122			251,955		$	2,378,471

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NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 2019

	FOR THE YEAR ENDED JUNE 30, 2019						FOR THE YEAR ENDED JUNE 30, 2018
CLASS I	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		916,202		$	8,199,999			–		$	–
Shares sold through reinvestments of distributions		13,545			121,519			93			876
Shares redeemed		(669,643	)		(6,000,000	)		–			–
Net increase		260,104		$	2,321,518			93		$	876
CLASS Y
Shares sold		7,687,011		$	69,664,148			7,646,098		$	72,032,811
Shares sold through reinvestments of distributions		743,115			6,700,505			425,660			4,011,731
Shares redeemed		(8,977,793	)		(80,944,931	)		(3,105,523	)		(29,263,594	)
Net increase (decrease)		(547,667	)	$	(4,580,278	)		4,966,235		$	46,780,948

Active Short Duration Bond Fund

	FOR THE YEAR ENDED JUNE 30, 2019						FOR THE YEAR ENDED JUNE 30, 2018
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		7,101,405		$	70,189,358			14,618,622		$	145,642,052
Shares sold through reinvestments of distributions		431,679			4,265,785			386,954			3,845,964
Shares redeemed		(11,765,228	)		(116,239,590	)		(8,990,871	)		(89,385,833	)
Net increase (decrease)		(4,232,144	)	$	(41,784,447	)		6,014,705		$	60,102,183
CLASS C
Shares sold		112,192		$	1,106,449			103,284		$	1,031,298
Shares sold through reinvestments of distributions		3,241			32,008			1,963			19,485
Shares redeemed		(112,125	)		(1,107,862	)		(13,404	)		(133,445	)
Net increase		3,308		$	30,595			91,843		$	917,338
CLASS I
Shares sold		–		$	–			20,309		$	203,500
Shares sold through reinvestments of distributions		–			–			–			–
Shares redeemed		–			–			–			–
Net increase		–		$	–			20,309		$	203,500
CLASS Y
Shares sold		46,643,848		$	460,231,739			20,820,040		$	207,162,143
Shares sold through reinvestments of distributions		934,483			9,235,817			564,556			5,609,410
Shares redeemed		(14,901,345	)		(147,071,661	)		(16,257,695	)		(161,293,725	)
Net increase		32,676,986		$	322,395,895			5,126,901		$	51,477,828

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NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 2019

Diversified Income Fund

	FOR THE YEAR ENDED JUNE 30, 2019						FOR THE YEAR ENDED JUNE 30, 2018
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		54,483		$	525,242			–		$	–
Shares sold through reinvestments of distributions		130			1,265			40			398
Shares redeemed		(50,659	)		(490,472	)		(495	)		(4,965	)
Net increase (decrease)		3,954		$	36,035			(455	)	$	(4,567	)
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		1,590,156		$	15,528,182			297,499		$	2,983,984
Shares sold through reinvestments of distributions		26,772			261,552			18,366			183,513
Shares redeemed		(249,234	)		(2,425,063	)		(369,123	)		(3,656,973	)
Net increase (decrease)		1,367,694		$	13,364,671			(53,258	)	$	(489,476	)

Emerging Markets Debt Blended Total Return Fund

	FOR THE YEAR ENDED JUNE 30, 2019						FOR THE YEAR ENDED JUNE 30, 2018
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		3,593		$	33,551			41,516		$	444,647
Shares sold through reinvestments of distributions		1,080			10,259			2,054			21,425
Shares redeemed		(23,984	)		(224,063	)		(4,035	)		(40,621	)
Net increase (decrease)		(19,311	)	$	(180,253	)		39,535		$	425,451
CLASS C
Shares sold		4,308		$	41,000			10,058		$	105,120
Shares sold through reinvestments of distributions		417			3,993			193			1,964
Shares redeemed		(7,937	)		(74,070	)		(2,108	)		(20,978	)
Net increase (decrease)		(3,212	)	$	(29,077	)		8,143		$	86,106

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NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 2019

	FOR THE YEAR ENDED JUNE 30, 2019						FOR THE YEAR ENDED JUNE 30, 2018
CLASS I	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		–		$	–			1,901,140		$	20,000,000
Shares sold through reinvestments of distributions		–			–			–			–
Shares redeemed		–			–			–			–
Net increase		–		$	–			1,901,140		$	20,000,000
CLASS Y
Shares sold		175,657		$	1,687,757			1,964,043		$	20,629,580
Shares sold through reinvestments of distributions		5,220			50,400			1,949			20,360
Shares redeemed		(47,558	)		(454,625	)		(41,536	)		(436,635	)
Net increase		133,319		$	1,283,532			1,924,456		$	20,213,305

Global Emerging Markets Equity Fund

	FOR THE PERIOD ENDED JUNE 30, 2019(1)
CLASS A	SHARES		AMOUNT
Shares sold		10,000	$	100,000
Shares sold through reinvestments of distributions		–		–
Shares redeemed		–		–
Net increase		10,000	$	100,000
CLASS C
Shares sold		10,000	$	100,000
Shares sold through reinvestments of distributions		–		–
Shares redeemed		–		–
Net increase		10,000	$	100,000
CLASS I
Shares sold		490,000	$	4,900,000
Shares sold through reinvestments of distributions		–		–
Shares redeemed		–		–
Net increase		490,000	$	4,900,000
CLASS Y
Shares sold		490,000	$	4,900,000
Shares sold through reinvestments of distributions		–		–
Shares redeemed		–		–
Net increase		490,000	$	4,900,000

(1) Fund commenced operation on September 17, 2018.

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NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 2019

Global High Yield Fund

	FOR THE YEAR ENDED JUNE 30, 2019						FOR THE YEAR ENDED JUNE 30, 2018
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		230,593		$	2,192,423			127		$	1,278
Shares sold through reinvestments of distributions		1,038			9,771			59			602
Shares redeemed		(439	)		(4,142	)		–			–
Net increase		231,192		$	2,198,052			186		$	1,880
CLASS C
Shares sold		11,068		$	102,520			–		$	–
Shares sold through reinvestments of distributions		859			8,104			976			9,925
Shares redeemed		(6,704	)		(60,654	)		(4,423	)		(44,337	)
Net increase (decrease)		5,223		$	49,970			(3,447	)	$	(34,412	)
CLASS I
Shares sold		–		$	–			–		$	–
Shares sold through reinvestments of distributions		–			–			–			–
Shares redeemed		–			–			–			–
Net increase		–		$	–			–		$	–
CLASS Y
Shares sold		478,228		$	4,521,457			350,327		$	3,558,842
Shares sold through reinvestments of distributions		3,172			30,114			10,313			105,798
Shares redeemed		(386,084	)		(3,686,335	)		(485,834	)		(4,925,710	)
Net increase (decrease)		95,316		$	865,236			(125,194	)	$	(1,261,070	)

U.S. High Yield Fund

	FOR THE YEAR ENDED JUNE 30, 2019						FOR THE YEAR ENDED JUNE 30, 2018
CLASS A	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		299,631		$	2,936,402			311,531		$	3,152,721
Shares sold through reinvestments of distributions		11,491			112,082			19,367			197,966
Shares redeemed		(215,869	)		(2,116,695	)		(282,527	)		(2,883,028	)
Net increase		95,253		$	931,789			48,371		$	467,659
CLASS C
Shares sold		–		$	–			–		$	–
Shares sold through reinvestments of distributions		–			–			88			900
Shares redeemed		–			–			(1,277	)		(12,651	)
Net decrease		–		$	–			(1,189	)	$	(11,751	)

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NOTES TO FINANCIAL STATEMENTS (CONTINUED)

June 30, 2019

	FOR THE YEAR ENDED JUNE 30, 2019						FOR THE YEAR ENDED JUNE 30, 2018
CLASS I	SHARES			AMOUNT			SHARES			AMOUNT
Shares sold		–		$	–			–		$	–
Shares sold through reinvestments of distributions		11,431			110,810			23,290			237,490
Shares redeemed		(279,772	)		(2,719,379	)		–			–
Net increase (decrease)		(268,341	)	$	(2,608,569	)		23,290		$	237,490
CLASS Y
Shares sold		526,284		$	5,109,450			2,624,846		$	25,986,787
Shares sold through reinvestments of distributions		161,061			1,565,077			44,607			445,882
Shares redeemed		(1,130,987	)		(10,910,446	)		(62,945	)		(636,602	)
Net increase (decrease)		(443,642	)	$	(4,235,919	)		2,606,508		$	25,796,067

10. Line of Credit

The Trust (the “Borrower”) has entered into a Credit Agreement (the “Credit Agreement”) with State Street Bank and Trust Company (the “Bank”). The Credit Agreement provides for a revolving credit facility of $61,000,000 (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 one month 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. Effective July 18, 2019, the Facility Amount increased from $61,000,000 to $150,000,000.

11. Indemnifications

Under the Funds’ organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Funds. Additionally, in the normal course of business, the Funds have entered into contracts with service providers which may contain indemnification clauses. The Funds maximum exposure under these arrangements is unknown. No claim has been made for indemnification pursuant to any such agreement of the Funds.

12. Aggregate Remuneration Paid to Officers, Trustees and Their Affiliated Persons

For the fiscal year ended June 30, 2019, the Funds paid their Trustees’ aggregate remuneration of $374,700. During the year, the Funds did not pay any compensation to any of their Trustees who are “interested persons” (as defined by the 1940 Act) of the Funds. The Funds classify Mr. Finke as an interested person of the Funds.

All of the Funds’ officers are employees of the Adviser. Pursuant to the Agreement, the Funds do not compensate their officers who are employees of the Adviser (except for the Chief Compliance Officer of the Funds unless assumed by the Adviser). For the year ended June 30, 2019, the Adviser paid the compensation of the Chief Compliance Officer of the Funds.

The Funds did not make any payments to the Adviser for the year ended June 30, 2019, other than the amounts payable to the Adviser pursuant to the Agreement.

13. Subsequent Events

Management has considered the circumstances under which the Funds should recognize or make disclosures regarding events or transactions occurring subsequent to June 30, 2019 through the date the financial statements were issued. Adjustments or additional disclosures, if any, have been included in these financial statements.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees of Barings Funds Trust and Shareholders of Barings Global Floating Rate Fund, Barings Global Credit Income Opportunities Fund, Barings Active Short Duration Bond Fund, Barings Diversified Income Fund, Barings Emerging Markets Debt Blended Total Return Fund, Barings Global Emerging Markets Equity Fund, Barings Global High Yield Fund and Barings U.S. High Yield Fund (collectively, the “Funds”):

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of Barings Funds Trust comprising the Barings Global Floating Rate Fund, Barings Global Credit Income Opportunities Fund, Barings Active Short Duration Bond Fund, Barings Diversified Income Fund (formerly Barings Total Return Bond Fund), Barings Emerging Markets Debt Blended Total Return Fund, Barings Global Emerging Markets Equity Fund, Barings Global High Yield Fund and Barings U.S. High Yield Fund (the “Funds”), including the schedules of investments, as of June 30, 2019; the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended for Barings Global Floating Rate Fund and Barings Global Credit Income Opportunities Fund; the related statements of operations, changes in net assets, and the financial highlights for the periods indicated in the table below for Barings Active Short Duration Bond Fund, Barings Diversified Income Fund (formerly Barings Total Return Bond Fund), Barings Emerging Markets Debt Blended Total Return Fund, Barings Global Emerging Markets Equity Fund, Barings Global High Yield Fund and Barings U.S. High Yield Fund; and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the funds listed above constituting Barings Funds Trust as of June 30, 2019, and the results of their operations for the year then ended (or for the periods listed in the table below), the changes in their net assets for each of the two years in the period then ended (or for the periods listed in the table below), and the financial highlights for each of the five years in the period then ended (or for the periods listed in the table below), in conformity with accounting principles generally accepted in the United States of America.

INDIVIDUAL FUND COMPRISING THE BARINGS FUNDS TRUST	STATEMENT OF OPERATIONS	STATEMENTS OF CHANGES IN NET ASSETS	FINANCIAL HIGHLIGHTS
Barings Active Short Duration Bond Fund Barings Diversified Income Fund (formerly Barings Total Return Bond Fund)	For the year ended June 30, 2019	For the years ended June 30, 2019 and 2018	For the years ended June 30, 2019, 2018, 2017, and the period from July 8, 2015 (commencement of operations) through June 30, 2016
Barings Emerging Markets Debt Blended Total Return Fund	For the year ended June 30, 2019	For the years ended June 30, 2019 and 2018	For the years ended June 30, 2019, 2018, 2017, and the period from October 21, 2015 (commencement of operations) through June 30, 2016
Barings Global Emerging Markets Equity Fund	For the period from September 17, 2018 (commencement of operations) through June 30, 2019

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (CONTINUED)

INDIVIDUAL FUND COMPRISING THE BARINGS FUNDS TRUST	STATEMENT OF OPERATIONS	STATEMENTS OF CHANGES IN NET ASSETS	FINANCIAL HIGHLIGHTS
Barings Global High Yield Fund Barings U.S. High Yield Fund	For the year ended June 30, 2019	For the years ended June 30, 2019 and 2018	For the years ended June 30, 2019, 2018, 2017, and the period from October 30, 2015 (commencement of operations) through June 30, 2016

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of June 30, 2019, by correspondence with the custodian, brokers or agent banks; when replies were not received from brokers and selling or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

New York, New York

August 28, 2019

We have served as the auditor of one or more Barings LLC investment companies since 2013.

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FEDERAL TAX INFORMATION (UNAUDITED)

The following Funds designate long-term capital gain distributions as listed below:

FUND	LONG-TERM CAPITAL GAIN DISTRIBUTIONS
Barings Global Floating Rate Fund	$	391,463
Barings Global Credit Income Opportunities Fund	$	1,517,782
Barings Active Short Duration Bond Fund	$	520,666
Barings Global High Yield Fund	$	429,794

The following Fund paid foreign taxes during the year ended June 30, 2019 that are available as income tax credits:

FUND	FOREIGN TAX CREDIT
Barings Emerging Markets Debt Blended Total Return Fund	$	12,035

The following Fund generated net foreign source income during the year ended June 30, 2019 as listed below:

FUND	FOREIGN SOURCE INCOME
Barings Emerging Markets Debt Blended Total Return Fund	$	3,194,150

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Barings Funds Trust 2019 Annual Report

INTERESTED TRUSTEE

Information about Trustees and Officers

Information pertaining to the Trustees and officers of the Trust is set forth below.

The Statement of Additional Information includes additional information about Trustees and is available, without charge, upon request by calling the Funds at 1-855-439-5459 or on the Funds’ website at http://www.barings.com/funds/mutual-funds.

NAME (AGE), ADDRESS	POSITION(S) WITH THE TRUST	OFFICE TERM AND LENGTH OF TIME SERVED	PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS	PORTFOLIOS OVERSEEN IN FUND COMPLEX	OTHER DIRECTORSHIPS HELD BY DIRECTOR
Thomas M. Finke (55) 300 South Tryon Street Suite 2500 Charlotte, NC 28202	Trustee	Trustee since July 2013	Chairman and Chief Executive Officer (since 2008), Member of the Board of Managers (since 2006), President (2007-2008), Managing Director (2002-2008), Barings; and Chief Investment Officer and Executive Vice President (2008-2011), Massachusetts Mutual Life Insurance Company.	10	Trustee (since 2013), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings); Director (since 2018), Barings BDC, Inc. (a business development company managed by Barings); Chairman (2012-2015), Director (since 2008), Barings (U.K.) Limited (investment advisory firm); Director (since 2008), Barings Guernsey Limited (holding company); Vice Chairman and Manager (since 2011), MM Asset Management Holding LLC (holding company); Director (since 2004), Jefferies Finance LLC (finance company); Manager (since 2005), Loan Strategies Management, LLC (general partner of an investment fund); Manager (since 2005), Jefferies Finance CP Funding LLC (investment company); Chairman and Director (2012-2015), Barings Global Advisers Limited (investment advisory firm); Manager (2011-2016), Wood Creek Capital Management, LLC (investment advisory firm); Chairman and Manager (2007-2016), Barings Real Estate Advisers LLC (real estate advisory firm); Manager (2007-2015), Credit Strategies Management LLC (general partner of an investment fund); and Manager (2004-2012), Class C Member LLC (equity holding company).

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INDEPENDENT TRUSTEES

NAME (AGE), ADDRESS	POSITION(S) WITH THE TRUST	OFFICE TERM AND LENGTH OF TIME SERVED	PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS	PORTFOLIOS OVERSEEN IN FUND COMPLEX	OTHER DIRECTORSHIPS HELD BY DIRECTOR
Rodney J. Dillman (66) 300 South Tryon Street Suite 2500 Charlotte, NC 28202	Trustee, Chairman	Trustee since July 2013	Retired (since 2012); Deputy General Counsel (2011-2012), Senior Vice President (2008-2012), Vice President (2000-2008), Massachusetts Mutual Life Insurance Company; Member of the Board of Directors and President (2008-2011), MassMutual International LLC; and General Counsel (2006-2008), Babson Capital Management LLC (currently known as Barings).	9	Trustee (since 2012), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings); and Director (2016-2017), Social Reality, Inc. (digital platform technology and management software company for internet advertising).
Bernard A. Harris, Jr. (63) 300 South Tryon Street Suite 2500 Charlotte, NC 28202	Trustee	Trustee since July 2013	Chief Executive Officer (since 2018), National Math and Science Initiative; Chief Executive Officer and Managing Partner (since 2002), Vesalius Ventures, Inc.; Director and President (since 1998), The Space Agency; President (since 1999), The Harris Foundation; and Clinical Scientist, Flight Surgeon and Astronaut (1986-1996), NASA.	9	Trustee (since 2012), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings); Director (since 2016), AIMIS, Inc. (American Institute of Minimally Invasive Surgery, an educator of advanced surgical techniques for women’s health specialists); Trustee (2015-2017), Forward Funds (open-end investment company); Director (since 2012), E-Cardio, Inc. (provides services for cardiac monitoring); Trustee (2011-2015), Salient Midstream & MLP Fund (closed-end investment company); Trustee (since 2011), Salient MLP & Energy Infrastructure Fund (mutual fund); Director (since 2009), Monebo Technologies Inc. (medical technology design company); Director (since 2009), The Endowment Fund; and Director (since 2008), U.S. Physical Therapy, Inc. (NYSE: USPH).
Thomas W. Okel (56) 300 South Tryon Street Suite 2500 Charlotte, NC 28202	Trustee	Trustee since July 2013	Executive Director (2011-2019), Catawba Lands Conservancy; and Global Head of Syndicated Capital Markets (1998-2010), Bank of America Merrill Lynch.	10	Trustee (since 2012), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings); Director (since 2018), Barings BDC, Inc. (business development company advised by Barings); and Trustee (since 2015), Horizon Funds (mutual fund complex).

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INDEPENDENT TRUSTEES (CONTINUED)

NAME (AGE), ADDRESS	POSITION(S) WITH THE TRUST	OFFICE TERM AND LENGTH OF TIME SERVED	PRINCIPAL OCCUPATIONS DURING PAST 5 YEARS	PORTFOLIOS OVERSEEN IN FUND COMPLEX	OTHER DIRECTORSHIPS HELD BY DIRECTOR
Cynthia R. Plouché (62) 300 South Tryon Street Suite 2500 Charlotte, NC 28202	Trustee	Trustee since August 2017	Assessor (2014-2018), Moraine Township (property assessment); and Senior Portfolio Manager (2006-2012), Williams Capital Management, LLC (asset management).	9	Trustee (since August 2017), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings); Trustee (since 2014), Northern Trust Funds (mutual fund complex); and Trustee (2001-2017), AXA VIP Trust (mutual fund complex).
Martin A. Sumichrast (52) 300 South Tryon Street Suite 2500 Charlotte, NC 28202	Trustee	Trustee since July 2013	Chairman and Chief Executive Officer (since 2016), Director (since 2015), CbdMD, Inc., f/k/a Level Brands, Inc. (NYSE: YCBD) (a consumer staples company specializing in CBD); Managing Partner and Principal (since 2013), Stone Street Partners, LLC (merchant banking); and Managing Director (since 2012), Washington Capital, LLC (family office).	9	Trustee (since 2012), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings); and Chairman and Director (2014-2017), Kure Corp. (retail).

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OFFICERS OF THE TRUST

NAME (AGE), ADDRESS	POSITION(S) WITH THE TRUST	OFFICE TERM AND LENGTH OF TIME SERVED	PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS
Dan McGee (49) 300 South Tryon Street Charlotte, NC 28202	President	Since August 2018	Managing Director (since 2013), Barings; and Managing Director (1992-2013), Principal Financial Group.
Carlene Pollock (52) 300 South Tryon Street Charlotte, NC 28202	Chief Financial Officer	Since January 2016	Assistant Treasurer (2015-2016), Barings Funds Trust; Chief Financial Officer (since 2016), Assistant Treasurer (2015-2016), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings); Director (since 2015), Barings; Director (2013-2015), Corrum Capital Management (investment adviser); and Vice President (2008-2013), Bank of New York Mellon (third party administrator).
Lesley Mastandrea (42) 300 South Tryon Street Charlotte, NC 28202	Treasurer	Since October 2016	Managing Director (since 2014), Director (2007-2014), Associate Director (2006-2007), Barings; and Treasurer (since 2016), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings).
Melissa LaGrant (45) 300 South Tryon Street Charlotte, NC 28202	Chief Compliance Officer	Since July 2013	Deputy Chief Compliance Officer (since 2019), Managing Director (since 2005), Barings; Chief Compliance Officer (since 2013), Barings Finance LLC; Chief Compliance Officer (since 2006), Barings Corporate Investors and Barings Participation Investors (closed-end investment companies advised by Barings); Chief Compliance Officer (since 2012), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings); and Chief Compliance Officer (since 2018), Barings BDC, Inc. (business development company advised by Barings).
Janice M. Bishop (54) 300 South Tryon Street Charlotte, NC 28202	Vice President, Secretary and Chief Legal Officer	Since July 2013	Senior Counsel and Managing Director (since 2014), Counsel (2007-2014), Barings; Vice President, Secretary and Chief Legal Officer (since 2015), Associate Secretary (2008-2015), Barings Corporate Investors and Barings Participation Investors (closed-end investment companies advised by Barings); Vice President, Secretary and Chief Legal Officer (since 2012), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings); Vice President and Secretary (since 2015), Assistant Secretary (2008-2015), CI Subsidiary Trust and PI Subsidiary Trust; and Secretary and Chief Legal Officer (since 2018), Barings BDC, Inc. (business development company advised by Barings).
Michelle Manha (46) 300 South Tryon Street Charlotte, NC 28202	Assistant Secretary	Since July 2013	Deputy General Counsel (since 2018), Associate General Counsel (2014-2018), Managing Director (since 2014), Counsel (2008-2014), Barings; and Assistant Secretary (since 2012), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings).

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OFFICERS OF THE TRUST (CONTINUED)

NAME (AGE), ADDRESS	POSITION(S) WITH THE TRUST	OFFICE TERM AND LENGTH OF TIME SERVED	PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS
Jill Dinerman (43) 300 South Tryon Street Charlotte, NC 28202	Assistant Secretary	Since February 2019	Associate General Counsel and Corporate Secretary (since 2018), Managing Director (since 2016), Senior Counsel (2016-2018), Counsel and Director (2011-2016), Barings; Assistant Secretary (since 2019), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings); Assistant Secretary (since 2019), Barings Corporate Investors and Barings Participation Investors (closed-end investment companies advised by Barings); and Assistant Secretary (since 2019), Barings BDC, Inc. (a business development company managed by Barings).

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JOINT PRIVACY NOTICE OF BARINGS LLC AND

BARINGS FUNDS TRUST

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

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

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

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

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

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

∎ Our Internet website.

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

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

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

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

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

April 2019

228

BARINGS FUNDS TRUST

ANNUAL REPORT

June 30, 2019

Item 2. Code of Ethics.

The Registrant adopted a Code of Ethics for Principal Executive and Senior Financial Officers (the “Code”) on July 29, 2013, which is available on the Registrant’s website at www.barings.com/assets/user/media/Open-End-Fund-Code-of-Ethics.pdf. During the period covered by this Form N-CSR, there were no amendments to, or waivers from, the Code.

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Trustees has determined that Dr. Bernard A. Harris, Jr., Mr. Thomas W. Okel and Mr. Martin A. Sumichrast, constituting all the members of the Registrant’s Audit Committee, are audit committee financial experts. Dr. Harris, Mr. Okel and Mr. Sumichrast are “independent” for purposes of this Item 3 as required by applicable regulation.

Item 4. Principal Accountant Fees and Services.

The Registrant has engaged its principal accountant, Deloitte & Touche LLP (“Deloitte”), to perform audit services, audit-related services, tax services and other services. The following tables detail the aggregate fees billed or expected to be billed for each of the last two fiscal years by Deloitte.

Fees Billed to the Registrant:

	Year Ended June 30 2019		Year Ended June 30, 2018
Audit Fees	$	349,850	$	357,560
Audit-Related Fees	$	0	$	0
Tax Fees	$	113,000	$	98,440
All Other Fees	$	0	$	0
Total Fees	$	462,850	$	456,00

Non-Audit Fees Billed to Barings and MassMutual:

	Year Ended June 30, 2019		Year Ended June 30, 2018
Audit Fees	$	4,319,401	$	4,256,259
Audit-Related Fees	$	0	$	0
Tax Fees	$	4,430,023	$	2,714,717
All Other Fees	$	4,652,066	$	12,453,397
Total Fees	$	13,401,490	$	19,424,372

The category “Audit Fees” refers to performing an audit of the Registrant’s, Barings LLC’s (“Barings”) or Massachusetts Mutual Life Insurance Company’s (“MassMutual”) annual financial statements or services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements. The category “Audit-Related Fees” reflects fees billed by Deloitte for various non-audit and non-tax services rendered to the Registrant, Barings, and MassMutual. Preparation of Federal, state and local income tax and tax compliance work are representative of the fees reported in the “Tax Fees” category. The category “All Other Fees” represents fees billed by Deloitte for consulting rendered to the Registrant, Barings, and MassMutual.

The Sarbanes-Oxley Act of 2002 and its implementing regulations allow the Registrant’s Audit Committee to establish a pre-approval policy for certain services rendered by the Registrant’s principal accountant, Deloitte. During the fiscal year ended June 30, 2019, the Registrant’s Audit Committee approved all of the services rendered to the Registrant by Deloitte and did not rely on such a pre-approval policy for any such services.

The Audit Committee has also reviewed the aggregate fees billed for professional services rendered by Deloitte for the years ended June 30, 2018 and June 30, 2019 for the Registrant and for the non-audit services provided to Barings, and Barings’ parent, MassMutual. As part of this review, the Audit Committee considered whether the provision of such non-audit services was compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

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

(b) Not applicable.

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

Not applicable.

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 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.

(a)(4) 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/ Daniel McGee
	Daniel McGee, President (Principal Executive Officer)

Date September 6, 2019

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/ Daniel McGee
	Daniel McGee, President (Principal Executive Officer)

Date September 6, 2019

By (Signature and Title)	/s/ Carlene Pollock
	Carlene Pollock, Chief Financial Officer (Principal Financial Officer)

Date September 6, 2019

EX-99.CERT

Exhibit 99.1 Cert

CERTIFICATIONS

I, Daniel McGee, 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 period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer 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.

September 6, 2019	/s/ Daniel McGee
Date	Daniel McGee, 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 period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer 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.

September 6, 2019	/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 June 30, 2019, 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/ Daniel McGee	/s/ Carlene Pollock
Daniel McGee President	Carlene Pollock Chief Financial Officer

Dated: September 6, 2019

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.