BXGCX — Barings Global High Yield Fund

BXGCX Fund Overview

BXGCX — Barings Global High Yield Fund is a US mutual fund managed by Barings Funds Trust, categorised as Corporate Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Barings Funds Trust
• Category: Corporate Bond
• Assets under management: $24.96M
• Ticker: BXGCX
• SEC CIK: 0001577579
• SEC series ID: S000049916
• Share class ID: C000157612

BXGCX Investment Objective and Strategy

Barings Global High Yield Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Barings Funds Trust.

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.

Principal investment strategy

Under normal conditions, the 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 Manager 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 unrated but judged by Barings to be of comparable quality. The Fund may invest in high yield securities of any rating, including securities that are in default at the time of purchase. The Fund may also invest to a lesser extent in other types of debt instruments such as high yield securities issued in currencies other than U.S.

dollar or European currencies by issuers outside North America or Europe, investment grade bonds, cash and near cash, deposits, money market instruments (such as short term commercial paper, bankers' acceptances, bank notes, government securities, and certificates of deposit). The Fund will allocate its assets among various regions and countries (but in no less than three different countries). Under normal market conditions, the Fund intends to invest at least 40% of its net assets (including the amount of any borrowings for investment purposes) in securities of non-U.S. issuers (or, if less, at least the percentage of net assets that is 10 percentage points less than the percentage of the Fund's benchmark, which is the Bank of America / Merrill Lynch Non-Financial Developed Markets High Yield Constrained Index (the Benchmark), represented by non-U.S.

issuers in developed markets, as determined by the provider of the Benchmark). A significant portion of the Fund's investments in fixed and floating rate corporate debt securities will be denominated in a currency other than the U.S. dollar. Although the Fund's investments in non-U.S. dollar denominated assets may be on a currency hedged or unhedged basis, the Fund expects that, under normal market conditions, it will seek to hedge substantially all of its exposure to non-U.S. currencies. The Fund will seek to take advantage of inefficiencies between geographies, primarily the North American and European high yield bond and other debt markets. For example, the Fund will seek to take advantage of differences in pricing between secured or unsecured, and, either senior or subordinated debt of an issuer denominated in U.S.

dollars and substantially similar debt of the same issuer denominated in Euros, potentially allowing the Fund to achieve a higher relative return for the same credit risk exposure. The Fund may invest up to 20% of its net assets in certain loan instruments (which may be securitized or unsecuritized). The Fund may also invest up to 20% of its net assets in convertible bonds which are not expected to be materially leveraged. The Fund may also invest in corporate debt instruments from emerging markets or non-Organisation for Economic Cooperation and Development (non-OECD) member states with a sovereign credit rating which is BB plus or lower from the ratings agency S&P, Ba1 or lower from Moody's, or the equivalent rating of another internationally recognized rating agency. The Fund may use derivatives, such as credit default swaps, forward foreign currency exchange contracts and bond and interest rate futures, for a variety of purposes, including: in an attempt to hedge against adverse changes in the market price of securities, interest rates or currency exchange rates; as a substitute for purchasing or selling securities; to attempt to increase the Fund's return as a non-hedging strategy that may be considered speculative; and to manage portfolio characteristics.

The Fund may choose not to make use of derivatives for a variety of reasons, and any use may be limited by applicable law and regulations. The Fund may invest in investments of any duration or maturity. The Fund also may hold cash or other short-term investments. The Fund expects that it will engage in active and frequent trading and so will typically have a relatively high portfolio turnover rate.

BXGCX Costs and Fees

BXGCX costs about $80 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.80%
• Gross expense ratio: 1.58%
• Portfolio turnover: 68%
• Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)

BXGCX Cashflows

Over the 12 months to 2019-12, Barings Global High Yield Fund had net outflows of $2.87M, from monthly SEC N-PORT filings.

BXGCX Debt Constituents

No individual debt constituents are reported in Barings Global High Yield Fund's latest SEC N-PORT filing.

BXGCX Prospectus and SEC Filings

Official Barings Global High Yield Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-11-18
• Prospectus (485BPOS) — filed 2018-11-20
• Prospectus (485BPOS) — filed 2017-11-21
• Portfolio holdings (N-PORT) — filed 2020-02-19
• Portfolio holdings (N-PORT) — filed 2019-11-21
• Annual census (N-CEN) — filed 2019-09-12
• Annual census (N-CEN) — filed 2018-09-13

Related Funds

Other Corporate Bond funds tracked on ABC INVEST:

• First Trust Preferred Securities and Income ETF (FPE)
• Nuveen Preferred Securities and Income Fund (NPSAX)
• Spectrum Preferred and Capital Securities Income Fund (PNARX)
• Invesco Variable Rate Preferred ETF (VRP)
• First Trust Institutional Preferred Securities and Income ETF (FPEI)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.