Barings Global Investment Funds Plc · Barings Global Investment Funds Plc (the “Company”) is...

Barings Global Investment Funds Plc

Annual Report and Audited Financial Statementsfor the financial year ended 31 December 2018

Registered Number: 486306


Financial Statements for the financial year ended 31 December 2018Contents

Page

Directors and Other Information 2

Directors’ Report 4

Statement of Directors’ Responsibilities 10

Depositary’s Report to the Shareholders 11

Independent Auditor’s Report 12

Investment Managers’ Reports 16

Statements of Comprehensive Income 30

Statements of Financial Position 35

Statements of Changes in Net Assets Attributable to Holders of Redeemable Shares 40

Statements of Cash Flows 45

Notes to the Financial Statements 50

Schedule of Investments (Unaudited)Barings Global Loan Fund 127Barings European Loan Fund 133Mezzanine Loan Fund 1 138Barings Global High Yield Strategies Fund 139Barings Global Special Situations Credit Fund 1 140Global Multi-Credit Strategy Fund 1 141Global Multi-Credit Strategy Fund 2 142European Loan Strategy Fund 1 143Barings Global Loan and High Yield Bond Fund 144Barings U.S. Loan Fund 145

AIFMD Related Periodic Investor Reporting (unaudited) 147

Disclosure of Remuneration (Unaudited) 148

Risk Management Systems and Risk Profile Summary (unaudited) 150

Total Expense Ratio and Performance Data (unaudited) 153

Barings Global Investment Funds Plc 1


Directors and Other Information

Directors

Mr. Peter Clark (UK resident, UK national)Mr. James Cleary (Irish resident, Irish national)*Mr. Timothy Schulze (US resident, US national)Ms. Barbara Healy (Irish resident, Irish national)*Mr. Julian Swayne (UK resident, UK national)Mr. David Conway (Irish resident, Irish national)*

Registered Office

70 Sir John Rogerson’s QuayDublin 2D02 R296Ireland

Investment Manager and Alternative

Investment Fund Manager

(up to 28 June 2018)

Barings Global Advisers Limited20 Old BaileyLondon EC4M 7BFUnited Kingdom

Manager and Alternative Investment Fund Manager

(with effect from 29 June 2018)

Baring International Fund Managers(Ireland) Limited70 Sir John Rogerson’s QuayDublin 2D02 R296Ireland

Investment Manager

(with effect from 29 June 2018)

Baring Asset Management Limited20 Old BaileyLondon EC4M 7BFUnited Kingdom

Barings LLC300 S. Tryon StreetSuite 2500CharlotteNorth Carolina 28202United States

Depositary

State Street Custodial Services (Ireland) Limited78 Sir John Rogerson’s QuayDublin 2D02 HD32Ireland

Administrator, Registrar and Transfer Agent

State Street Fund Services (Ireland) Limited78 Sir John Rogerson’s QuayDublin 2D02 HD32Ireland

Distributors

Barings Global Advisers Limited20 Old BaileyLondon EC4M 7BFUnited Kingdom

Barings (U.K.) Limited20 Old BaileyLondon EC4M 7BFUnited Kingdom

Barings Australia Pty LimitedLevel 22, Grosvenor Place225 George StreetSydney NSW 2000Australia

Barings Securities LLCIndependence Wharf470 Atlantic AvenueBoston, MA 022210United States

Baring Asset Management Limited20 Old BaileyLondon EC4M 7BFUnited Kingdom

Baring International Fund Managers (Ireland) Limited70 Sir John Rogerson’s QuayDublin 2D02 R296Ireland

Baring SICE (Taiwan) Limited21st Floor, No. 333Sec. 1 Keelung RoadTaipei 11012Taiwan

Baring France SAS10 Rue Des Pyramides75001 ParisFrance

Baring Asset Management GmbHGuiollettstraße 5460325 Frankfurt am MainGermany

Baring Asset Management Switzerland S.à r.l.Rue du Marché 281204 GenevaSwitzerland

Barings Global Investment Funds Plc2

*Independent Directors



Directors and Other Information (continued)

Distributors (continued)

Barings Japan Limited7F Kyobashi Edogrand2-2-1 Kyobashi Chuo-kuTokyo 104-0031Japan

Baring Asset Management (Asia) Limited35/F Gloucester Tower15 Queen’s Road CentralHong Kong

Independent Auditor

KPMGChartered Accountants and Statutory Audit Firm1 Harbourmaster PlaceInternational Financial Services CentreDublin 1D01 F6F5Ireland

Legal Advisers

Matheson70 Sir John Rogerson’s QuayDublin 2D02 R296Ireland

Sponsoring Broker and Company Secretary

Matsack Trust Limited70 Sir John Rogerson’s QuayDublin 2D02 R296Ireland



Directors’ Reportfor the financial year ended 31 December 2018

The Directors present to the shareholders their annual report together with the audited financial statements for the financial yearended 31 December 2018.

The Company

Barings Global Investment Funds Plc (the “Company”) is an umbrella type open-ended investment company with variablecapital. The Company was incorporated on 2 July 2010 under registration number 486306. The Company is structured as aqualifying investor alternative investment fund (“QIAIF”). The Company has been authorised as a QIAIF pursuant to theAlternative Investment Fund Managers’ Directive (“AIFMD”) Regulations. Accordingly, the Company is supervised by theCentral Bank of Ireland (the “Central Bank”).

The Company is structured as an open-ended umbrella fund with segregated liability between funds. Shares representinginterests in different funds may be issued from time to time by the Directors. Shares of more than one class may be issued inrelation to a fund. As at 31 December 2018, the Company had ten active funds (together the “Funds”).

The majority of the Funds’ investments are held through wholly owned subsidiaries (the “Subsidiaries”), with the exception ofBarings Global High Yield Strategies Fund whose investments are held directly. The Subsidiaries are incorporated and taxresident in Ireland.

As per the Prospectus, the Company’s financial statements are presented in United States Dollars (“US$”) while the Fund’sfinancial statements are presented in accordance with the functional currency as set out in the relevant Supplements.

Details of the Funds and their Subsidiaries as at 31 December 2018 are as follows:

Functional Active Share

Fund Name Subsidiary Name Currency Classes

Barings Global Loan Fund Barings Global Loan Limited United States Dollar 51*Barings European Loan Fund Barings European Loan Limited Euro 51*Mezzanine Loan Fund 1 Barings Mezzanine Loan 1 Limited Euro 1*Barings Global High Yield Strategies Fund N/A Euro 1*Barings Global Special Situations Credit Fund 1 Barings Global Special Situations Credit 1 Limited United States Dollar 3Global Multi-Credit Strategy Fund 1 Barings Global Multi-Credit Strategy 1 Limited British Pound 1Global Multi-Credit Strategy Fund 2 Barings Global Multi-Credit Strategy 2 Limited United States Dollar 1*European Loan Strategy Fund 1 Barings European Loan Strategy 1 Limited Euro 1Barings Global Loan and High Yield Bond Fund Barings Global Loan and High Yield Bond Limited United States Dollar 2*Barings U.S. Loan Fund** Barings U.S. Loan Limited United States Dollar 11*

**These share classes were listed on Euronext Dublin as at 31 December 2018. In March 2018, Euronext completed the purchase of the Irish Stock Exchange (“ISE”),**and renamed the ISE as Euronext Dublin.**This Fund launched on 31 August 2018.

Investment objectives

Barings Global Loan Fund

The investment objective of the Fund is to achieve current income, and where appropriate, capital appreciation. The Fund willseek to achieve its objective by investing primarily in senior secured loans and, to a lesser extent, senior secured bonds issuedby North American and European companies (including those debt instruments issued by entities based in offshorejurisdictions such as the Channel Islands, the Cayman Islands, Bermuda and other offshore jurisdictions).

Barings European Loan Fund

The investment objective of the Fund is to achieve current income, and where appropriate, capital appreciation. The Fund willseek to achieve its objective by investing primarily in senior secured loans and, to a lesser extent, senior secured notes issuedby European companies. The Fund will also invest to a lesser extent in senior secured loans and senior bonds issued by NorthAmerican companies (subject to a limit of 20% of Net Asset Value (“NAV”)).

Mezzanine Loan Fund 1

The investment objective of the Fund is to achieve current income, and where appropriate, capital appreciation. The Fund willseek to achieve its objective by investing primarily in mezzanine loans and unitranche debt and, to a lesser extent, Payment inKind (“PIK”) loans and shares issued by private companies based in Europe, North America and elsewhere around the world.



Directors’ Reportfor the financial year ended 31 December 2018 (continued)

Investment objectives (continued)

Barings Global High Yield Strategies Fund

The investment objective of the Fund is to provide high current income generation and, where appropriate, capital appreciation.The Fund will seek to achieve its objective by investing primarily in sub-investment grade corporate credit funds managed bythe Investment Managers (the “Underlying Funds”). The Underlying Funds will invest in global corporate credit including seniorsecured loans and notes, secured high yield bonds and unsecured high yield bonds.

Barings Global Special Situations Credit Fund 1

The investment objective of the Fund is to achieve a combination of capital appreciation and to a lesser degree, current income.The Fund will seek to achieve its objective by investing primarily in stressed and distressed corporate debt instruments issuedby companies based primarily in Europe and North America (including those debt instruments issued by issuing entities basedin offshore centres such as the Channel Islands, Cayman Islands, Bermuda and other offshore jurisdictions).

Global Multi-Credit Strategy Fund 1

The investment objective of the Fund is to achieve current income and where appropriate, capital appreciation. The Fund willseek to achieve its objective by investing principally in a portfolio of high yield fixed and floating rate corporate debtinstruments, focused on instruments issued by North American and European companies (including those debt instrumentsissued by issuing entities based in offshore centres, such as the Channel Islands, Cayman Islands, Bermuda, and otheroffshore jurisdictions).


The investment objective of the Fund is to achieve current income, and where appropriate, capital appreciation. The Fund willseek to achieve its objective by investing principally in a portfolio of high yield fixed and floating rate corporate debtinstruments, including stressed and distressed corporate debt instruments, focused on instruments issued by North Americanand European companies (including those debt instruments issued by issuing entities based in offshore centres, such as theChannel Islands, Cayman Islands, Bermuda, and other offshore jurisdictions). The Fund will also invest in structured creditproducts and securitised assets, including debt and equity tranches of collateralised loan obligations and mortgage backedsecurities, as well as asset backed securities.

European Loan Strategy Fund 1

The investment objective of the Fund is to achieve current income and, where appropriate, capital appreciation. The Fund willseek to achieve its objective by investing primarily in senior secured loans and, to a lesser extent, senior secured notes issuedby European companies. The Fund will also invest to a lesser extent in senior secured loans and senior bonds issued by NorthAmerican companies.

Barings Global Loan and High Yield Bond Fund

The Investment objective of the Fund is to achieve current income, and where appropriate, capital appreciation. The Fund willseek to achieve its objective by investing primarily in a portfolio of high yield fixed and floating rate corporate debt instrumentissued by North American and European companies (including those debt instruments issued by issuing entities based inoffshore centres, such as the Channel Islands, Cayman Islands, Bermuda, and other offshore jurisdictions). The Fund may alsoinvest in corporate debt instruments issued by companies outside North America and Europe, corporate debt instruments fromEmerging Markets (meaning non-OECD member states with a sub-investment grade credit rating), payment-in-kind corporatedebt instruments, preferred stock, common equity and other equity instruments where associated with issuers of high yield debtinstruments, and in units and/or shares in investment funds where such investments are consistent with the investment objectiveof the Fund.

Barings U.S. Loan Fund

The investment objective of the Fund is to achieve current income, and where appropriate, capital appreciation. The Fund willseek to achieve its objective by investing primarily in U.S. dollar denominated senior secured loans. In addition, the Fund’sinvestments may include, without limitation, subordinate high yield loans, high yield bonds, noninvestment grade fixed incomeor debt securities and any other debt instruments determined by the Investment Managers to be consistent with the Fund’sinvestment objective. On 31 August 2018, Barings U.S. Loan Limited, a subsidiary of the Fund, received non-cash assetstransferred from Babson Capital Floating Rate Income Master Fund, L.P. amounting to US$1,102,606,842 and cash ofUS$51,504,752 in exchange for subscriptions of US$1,154,111,594.




Corporate Governance Statement

General Principles

The Company is subject to compliance with the requirements of the Companies Act, 2014 (the “Companies Act”), and theCentral Bank’s Alternative Investment Fund (“AIF”) Rulebook as applicable to the Company. The European Communities(Directive 2006/46/EC) Regulations (S.I. 450 of 2009 and S.I. 83 of 2010) (the “Regulations”) requires the inclusion of aCorporate Governance Statement in the Directors’ Report.

Although there is no specific statutory corporate governance code applicable to Irish investment funds whose shares areadmitted to trading on the Euronext Dublin, the Company is subject to corporate governance practices imposed by:

(i) The Companies Act, 2014 which are available for inspection at the registered office of the Company; and may also beobtained at:- http://www.irishstatutebook.ie;

(ii) The Articles of Association of the Company which are available for inspection at the registered office of the Company at 70Sir John Rogerson’s Quay, Dublin 2, D02 R296, Ireland and at the Companies Registration Office in Ireland;

(iii) The Central Bank’s AIF Rulebook which can be obtained from the Central Bank’s website at:http://www.centralbank.ie/regulation/industry-sectors/funds/Pages/default.aspx and are available for inspection at theregistered office of the Company; and

(iv) Euronext Dublin through the Euronext Dublin Code of Listing Requirements and Procedures which can be obtained fromthe Euronext Dublin’s website at: https://www.ise.ie/Products-Services/Investment%20Funds/List-a-Fund/#fundlistingrules

The Company has assessed the measures included in the voluntary Corporate Governance Code for Investment Funds aspublished by the Irish Funds in December 2011 (the “IF Code”). The Board have adopted the corporate governance practicesand procedures in the IF Code with effect from 1 January 2013. The Board considers that the Company has complied with themain provisions contained in the IF Code from the date of adoption to 31 December 2018.

The Company is not subject to the European Communities (Takeover Bids (Directive 2004/25/EC)) Regulations 2006.

Internal Control and Risk Management Systems in Relation to Financial Reporting

The Board is ultimately responsible for establishing and maintaining adequate internal control and risk management systemsof the Company in relation to the financial reporting process. Such systems are designed to manage rather than eliminate therisk of error or fraud in achieving the Company’s financial reporting objectives and can only provide reasonable and notabsolute assurance against material misstatement or loss.

The Board has procedures in place to ensure that all relevant books of account are properly maintained and are readilyavailable; including the production of annual financial statements. The Board has appointed the Administrator (who isindependent from the Board and the Investment Managers) to maintain the books and records of the Company. TheAdministrator is authorised and regulated by the Central Bank and must comply with the rules imposed by the Central Bank.From time to time, the Board examines and evaluates the Administrator’s financial accounting and reporting routines. Theannual financial statements are produced by the Administrator and reviewed by the Investment Managers. They are requiredto be approved by the Board and the annual financial statements are required to be filed with the Central Bank and EuronextDublin.

The financial statements are prepared by the Administrator in compliance with International Financial Reporting Standards(“IFRS”) as adopted in the EU, as adopted by the Company, and the Administrator uses various internal controls and checkliststo ensure that the financial statements include complete and appropriate disclosures required under IFRS and relevantlegislation.

During the period of these financial statements, the Board was responsible for the review and approval of the annual financialstatements as set out in the Statement of Directors’ Responsibilities. The statutory financial statements are required to beaudited by independent auditors who report annually to the Board on their findings. The Board evaluates and discussessignificant accounting and reporting issues as the need arises.


Corporate Governance Statement (continued)

Dealings with shareholders

The convening and conduct of shareholders meetings are governed by the Articles of Association of the Company and theCompanies Act, 2014. Although the Board may convene an extraordinary general meeting of the Company at any time, theBoard were required to convene the first annual general meeting of the Company within eighteen months of incorporation andfifteen months of the date of the previous annual general meeting thereafter, provided that an annual general meeting is heldonce in each year within six months of the end of each accounting period of the Company. At least twenty-one clear days’ noticeof every annual general meeting and any meeting convened for the passing of a special resolution must be given toshareholders and fourteen days’ notice must be given in the case of any other general meeting. Two shareholders holdingvoting shares present either in person or by proxy constitutes a quorum at a general meeting. The Companies Act, 2014 andthe Articles of Association provide that the quorum for a general meeting convened to consider any alteration to the rightsattached to any class of shares, is two or more shareholders present in person or by proxy, holding or representing by proxyat least one third of the issued shares of the relevant class.

Each shareholder is entitled to such number of votes as shall be produced by dividing the aggregate NAV of the shareholder’sshareholding by one. The Subscriber shareholders have one vote for each Subscriber share held. On a poll, every shareholderpresent, in person or by proxy, is entitled to one vote in respect of each share held by him. At any general meeting, a resolutionput to the vote of the meeting is decided on a show of hands unless, a resolution is not passed unanimously on such show ofhands, in which case such resolution shall be decided on a poll.

Board composition and activities

In accordance with the Companies Act, 2014 and the Articles of Association, unless otherwise determined by an ordinaryresolution of the Company in general meeting, the number of Directors may not be less than two. Currently, the Board iscomprised of six non-executive Directors, three of whom are independent. Details of the current Directors, including details ofthe Independent Directors, are set out on page 2.

The business of the Company is managed by the Directors, who exercise all such powers of the Company as are not by theCompanies Act, 2014 or by the Articles of Association of the Company required to be exercised by the Company in generalmeeting.

A Director may, and the Company Secretary on the requisition of a Director will, at any time summon a meeting of the Directorsin addition to the four meetings that are convened as required. In the case of an equality of votes, the Chairman of the meetingat which the show of hands takes place or at which the poll is demanded shall be entitled to a second or casting vote. Thequorum necessary for the transaction of business at a meeting of the Directors is two. There were no sub-committees of theBoard in operation during the year or at the year end.

Effective from 29 June 2018, the investment activities of the Funds are managed by Baring Asset Management Limited for allof the Funds and Barings LLC for all of the Funds with the exception of Mezzanine Loan Fund 1, (together the “InvestmentManagers”).The administration of the Company is delegated to State Street Fund Services (Ireland) Limited (the“Administrator”).

Connected Parties

The Central Bank’s Alternative Investment Fund (“AIF”) Rulebook section on “Dealings by management company, generalpartner, Depository, AIFM, investment manager or by delegates or group companies of these” states that any transactioncarried out with the Funds by the Management Company, General Partner, Depository, AIFM, Investment Manager or bydelegates or group companies of these (“Connected Parties”) must be carried out as if negotiated at arm’s length. Transactionsmust be in the best interests of the Shareholders.

The Board is satisfied that there are arrangements (evidenced by written procedures) in place, to ensure that the obligationsset out above are applied to all transactions with Connected Parties; and the Board is satisfied that transactions with ConnectedParties entered into during the period complied with the obligations set out in this paragraph.

Business review and future developments

The net assets of the Company attributable to holders of redeemable shares amounted to US$16,383,211,499 (31 December2017: US$18,093,869,894). The Statements of Comprehensive Income are set out on pages 30 to 32. A detailed review of thebusiness and future developments is contained in the Investment Managers’ Reports on pages 16 to 29. The Directors do notanticipate any change in the structure or investment objectives of the Company.






Brexit

The outcome of the Brexit negotiations continues to be uncertain and Barings continues to plan for a number of possiblescenarios including a “no-deal” outcome. Barings is committed to ensuring continuity for its investors and protecting againstpotential regulatory or other market access barriers related to Brexit. In this regard, Barings has appointed Baring InternationalFund Managers (Ireland) Limited (“BIFMI”), an Irish AIFM, as the manager of the Fund. As a consequence, Barings will be ableto use BIFMI’s AIFMD passports to continue to market products into EU27 and to manage EU27 funds, unaffected by Brexit.Portfolio management in respect of European investments will continue to be delegated back to Baring Asset ManagementLimited, a UK entity and portfolio management of US investments will continue to be conducted by Barings LLC, a US entity.The depositaries/custodians and administrators of such funds are also EU27 entities. In addition, Barings has established aDublin office and recruited several key employees for it, reflecting the increased significance of BIFMI’s role within the business.

Whilst the medium to long-term consequences of the decision to leave the EU remain uncertain in any scenario, there could beshort-term volatility which could have a negative impact on general economic conditions, business and consumer confidencein both the UK and EU, which may in turn have negative political, economic and market impacts more widely. The longer-termconsequences may be affected by the terms of any future arrangements the UK has with the remaining member states of theEU27. Among other things, the UK's decision to leave the EU could lead to changes in the law and tax treatment of funds,instability in the equity, debt and foreign exchange markets, including volatility in the value of the pound sterling or the euro.

Directors

The Directors who served during the financial year were:Mr. Peter ClarkMr. James ClearyMr. Timothy SchulzeMs. Barbara HealyMr. Julian SwayneMr. David Conway

Company Secretary

Matsack Trust Limited (the “Secretary”) acted as Company Secretary for the financial year.

Directors’ and Secretary’s interests

Neither the Directors nor the Secretary held any shares in the Company.

Ms. Barbara Healy, Mr. David Conway and Mr. James Cleary also serve as Directors of the Subsidiaries. Mr. Peter Clark andMr. Julian Swayne are managing directors of Baring Asset Management Limited, the Investment Manager. Mr. Timothy Schulzeis a managing director of Barings LLC, also an Investment Manager.

All of the Directors are also directors of Baring International Fund Managers (Ireland) Limited.

Risk management objectives and policies

The principal risks and uncertainties facing the Company are market risk, credit risk and liquidity risk. The Company hasmaintained its aim of spreading investment risk. These are explained in Note 10 of the financial statements along with the riskmanagement framework in place to mitigate these risks.

Distributions

The following distributions were approved by the Directors for the financial year ended 31 December 2018 and 31 December2017:

Fund 31 Dec 2018 31 Dec 2017

Barings Global Loan Fund US$161,334,447 US$168,678,766Barings European Loan Fund €55,636,041 €46,758,143Mezzanine Loan Fund 1 €1,507,696 €580,673Global Multi-Credit Strategy Fund 1 GBP£11,731,732 GBP£8,119,991Global Multi-Credit Strategy Fund 2 US$19,756,156 US$20,630,894European Loan Strategy Fund 1 €11,261,710 €7,427,402Barings Global Loan and High Yield Bond Fund US$14,822,629 US$3,880,880Barings U.S. Loan Fund* US$8,956,636 -

*This Fund launched on 31 August 2018.


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BARINGS GLOBAL INVESTMENT FUNDS PLC

Report on the audit of the financial statements

1 Opinion

We have audited the financial statements of Barings Global Investment Funds plc (‘the Company’) for the ended 31 December2018, which comprise the Statements of Comprehensive Income, Statements of Financial Position, Statements of Changes inNet Assets Attributable to Holders of Redeemable Participating Shares, Statements of Cash Flows and the related notes,including the summary of significant accounting policies set out in note 2. The financial reporting framework that has beenapplied in their preparation is Irish Law and International Financial Reporting Standards (IFRS) as adopted by the EuropeanUnion.

In our opinion, the accompanying financial statements:

• give a true and fair view of the assets, liabilities and financial position of the Company as at 31 December 2018 and ofits changes in net assets attributable to holders of redeemable participating shares for the year then ended;

• have been properly prepared in accordance with IFRS as adopted by the European Union; and• have been properly prepared in accordance with the requirements of the Companies Act 2014.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (Ireland) (ISAs (Ireland)) and applicable law.Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financialstatements section of our report. We are independent of the Company in accordance with ethical requirements that are relevantto our audit of financial statements in Ireland, including the Ethical Standard issued by the Irish Auditing and AccountingSupervisory Authority (IAASA), and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion

2 Key audit matters: our assessment of risks of material misstatement

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financialstatements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified byus, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; anddirecting the efforts of the engagement team. These matters were addressed in the context of our audit of the financialstatements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.


Independent Auditor’s Reportfor the financial year ended 31 December 2018



Independent Auditor’s Reportfor the financial year ended 31 December 2018 (continued)

2 Key audit matters: our assessment of risks of material misstatement (continued)

In arriving at our audit opinion above, the key audit matter was as follows:

Valuation of Investments $16,395,136,164 (2017 - $18,044,874,353)

Refer to note 2b (d) (accounting policy) and note 9 and 10 (financial disclosures)

The key audit matter

The Company’s financial instrument portfolio comprises ofinvestments in Subsidiaries, forward currency contracts andinvestments in collective investment schemes (“theInvestments”).

The Company’s investments in Subsidiaries form the majorityof its financial assets at fair value through profit or loss.

The carrying value of the Subsidiaries is calculated byassessing the fair value of the Subsidiaries underlyingportfolio of investments.

The Subsidiaries’ portfolio of investments comprises of loans,CLOs, equities, collective investment schemes, warrants,bonds and derivatives (including both listed and non-listedinvestments) which is the key driver of capital and revenueperformance.

There is a significant risk relating to the valuation of theInvestments given the judgemental nature of the matters thatrequire consideration by the investment manager and Boardof Directors.

How the matter was addressed in our audit

We addressed the key audit matter as follows:

• we obtained and documented our understanding ofthe investment valuation process and assessed thedesign and implementation of controls which includesinspecting the latest report on the administrator’scontrols related to the Company’s investmenttransactions issued by its auditor in accordance withISAE 3402 “Assurance Reports on Controls at aService Organisation”;

• we compared the Company’s investments in itsSubsidiaries against the balances within the auditedfinancial statements of the Subsidiaries;

• we inspected the audited financial statements of theSubsidiaries for indication of any issues that mayimpact the value of the Company’s investments inthose Subsidiaries;

• we engaged our valuation specialist team who agreedthe forward currency contracts at Company level toindependently priced sources;

• we agreed the NAV per share of the investments incollective investment schemes at Company level toindependently obtained confirmations from theadministrator of the collective investment schemes;

• we further engaged our valuation specialists team,who agreed 99.1% of the Subsidiaries’ investmentportfolio to independently sourced prices;

• for the valuation of the remaining 0.9% of theSubsidiaries’ investment portfolio:

• we agreed the NAV per share of 100% of theinvestments in collective investment schemes toindependently obtained confirmations from theadministrator of the collective investment schemes.

• there were certain unquoted investments in theportfolios as at 31 December 2018 over which theInvestment Manager was appointed as a competentperson. These securities are generally illiquid andhard to value due to there being no readily availablemarket prices and are therefore subject to valuationtechniques by the Investment Manager whichincorporate certain assumptions, judgements anduncertainties. For all these positions, we obtained thesupporting documentation from the InvestmentManager to support their pricing judgements and thisdocumentation was reviewed by the pricing specialistfor reasonableness.

• In addition, we considered the appropriateness, inaccordance with relevant accounting standards, ofthe disclosures relating to unquoted investments.

We noted no material exceptions arising from our testing.



Independent Auditor’s Reportfor the financial year ended 31 December 2018 (continued)

3 Our application of materiality and an overview of the scope of our audit

Materiality for the Company financial statements as a whole was set at $164m (2017: $181m), determined with reference to abenchmark of Net Assets (of which it represents 1% (2017: 1%)).

We consider Net Assets to be the most appropriate benchmark as it is the most widely used benchmark in the funds industryand is the metric that is most important to investors, who would be one of the key users of the Company’s financial statements.Subscriptions and redemptions in and out of the fund are transacted at net asset value. Potential investors would also judgehow the Company is performing based on its net asset value.

We reported to the Board of Directors any corrected or uncorrected identified misstatements exceeding 5% of materiality ofeach individual sub-fund, in addition to other identified misstatements that warranted reporting on qualitative grounds.

4 We have nothing to report on going concern

We are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriateor there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for a period of at leasttwelve months from the date of approval of the financial statements. We have nothing to report in these respects.

5 Other information

The directors are responsible for the other information presented in the Annual Report together with the financial statements.The other information comprises the information included in the directors’ report, depositary’s report, investment manager’sreport, schedule of investments, AIFMD disclosures and disclosure of remuneration. The financial statements and our auditor’sreport thereon do not comprise part of the other information. Our opinion on the financial statements does not cover the otherinformation and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assuranceconclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements auditwork, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Basedsolely on that work we have not identified material misstatements in the other information.

Based solely on our work on the other information, we report that:

• we have not identified material misstatements in the directors’ report;• in our opinion, the information given in the directors’ report is consistent with the financial statements; and• in our opinion, the directors’ report has been prepared in accordance with the Companies Act 2014.

6 Our opinions on other matters prescribed the Companies Act 2014 are unmodified

We have obtained all the information and explanations which we consider necessary for the purposes of our audit.

In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily andproperly audited and the financial statements are in agreement with the accounting records.

7 Matters on which we are required to report by exception

The Companies Act 2014 requires us to report to you if, in our opinion, the disclosures of directors’ remuneration andtransactions required by Sections 305 to 312 of the Act are not made. We have nothing to report in this regard.



Investment Managers’ Reportfor the financial year ended 31 December 2018


Barings Global Loan Fund (the “Fund”) generated a gross return of 1.04% on the Share Tranche A USD Accumulation andunderperformed against the performance comparator with a return of 1.61%* during the reporting period.

The global high yield markets were producing positive returns through the first three quarters of 2018. Loans were outperforming bonds, and the U.S. was outperforming Europe. During the fourth quarter the global high yield markets sold offmostly due to technical pressures as retail fund flows turned materially negative. In our opinion, this does not reflect any changein the outlook for defaults, which are widely expected to remain low, but rather investor sentiment resulting from the manygeopolitical headwinds throughout 2018. For the full year, loans were one of the few assets classes to produce positive returns.

The U.S. loan market finished the year with a positive return despite considerable volatility in the final two months of the year.There was a notable difference between performance in the market during the first three quarters compared to the fourthquarter. Through the first three quarters the market had returned +4.36% with almost all of the return coming from the returnfrom interest income. During the fourth quarter the market experienced a technically driven drawdown of -3.08% which waslargely the result of selling pressure from retail fund outflows. Net flows for loan retail funds in the U.S. had an inflow of $15.9billion through the first three quarters, before turning materially negative starting at the end of October and finishing the yearwith a net outflow of $4.3 billion. The average price in the secondary market was largely range bound between the end of 2017(97.63% of par) and September month-end (98.52%) before declining to 94.09% at the end of December. Even with the declinein prices late in the year, the interest income generated by the loans in the market was enough for the market to finish with apositive result. It is worth highlighting that short-term Libor rates continued to increase during the year and as a result of floatingrate coupon for the asset class, the overall interest income level increased during the year as well. The average coupon for themarket increased by 110 bps during the year to reach 6.12% by the end of the year. After tightening earlier in the year, theaverage credit spread as represented by the 3-year discount margin finished the year 134 bps wider than the prior year-endat 550 bps. From an industry perspective, all industry sectors posted a negative return in the final two months of the year whichresulted in a range of positive and negative returns for the full year. The Retail sector outperformed for the full year afterrecouping some of the price declines in the prior year, although the sector continues to face secular headwinds.Notwithstanding the decline in sentiment from retail investors in the fourth quarter, demand for U.S. loans was healthy overallin 2018, driven by issuance of CLOs. Gross CLO issuance was strong at $278 billion and excluding transactions that do notincrease outstanding balances (ex. refinance, re-issue and reset transactions) issuance was still $130 billion which is acalendar year record. We viewed the selloff as being more technical in nature and expect near-term default rates will remainbelow long term historical levels.

The European loan market held up better than many other risk asset classes in face of broader market volatility in 2018. Withmajority of risk asset classes producing negative return in 2018, European loan were one of the few asset classes that actuallygenerating a positive return over the year. Performance across industries was generally positive while some notable laggardssuch as Consumer Durables and Retail detracted the overall return. CLO activity was muted through December, as the volatilityand sell-off across the wider high yield markets also had an impact on structured credit markets. Rapidly widening CLO liabilityspreads will most likely result in a temporary pause of new CLO issuance due to challenged arbitrage, albeit over the mediumterm we would expect the yields/spreads on both assets and liabilities to stabilise. It is worth noting that volumes do typicallyreduce throughout December and it is difficult to infer market movements in the month into longer term trends. From a sponsor-backed perspective, the activity in European loan market hit €76.4bn from 157 deals in 2018 versus €78.95bn from 205transactions recorded in 2017.

The Fund underperformed its benchmark in 2018. Since its inception in September 2010, the Fund has outperformed itsbenchmark.

*The Fund return uses the close New York prices, whereas the return of the performance comparator is calculated using global close prices.

Baring Asset Management Limited

Barings LLC

April 2019



Investment Managers’ Reportfor the financial year ended 31 December 2018 (continued)


Barings European Loan Fund (the “Fund”) generated a gross return of 0.66% on the Share Tranche A EUR Accumulation andunderperformed against the performance comparator with a return of 1.51%* during the reporting period.


The Fund underperformed its benchmark in 2018. Since its inception in July 2009 the Fund has outperformed its benchmark.



Barings LLC

April 2019



The purpose of Mezzanine Loan Fund 1 (the “Fund”), which was launched in 2012, is to generate attractive risk adjusted returnsthrough investment in mezzanine and unitranche loans issued by private equity-owned businesses. Private equity sponsoredtransactions benefit from first loss capital protection via the equity capital contribution, together with appropriate corporategovernance and controls and technical input provided by the sponsor. The gross IRR since inception (13 January 2012) is7.25%.

As at 31 December 2018, the Fund had three portfolio positions. During the accounting period the Fund realised its investmentsin QuEst Global Services, Lumesse, and HTL Bio. The Fund made an incremental investment in an existing portfolio company,National Fostering Agency (NFA), following an August 2018 refinancing. NFA is the leading UK provider of children’s serviceswith a complementary nationwide offering comprising fostering, specialist education, and residential care for children andyoung people with learning difficulties and mental health issues.


April 2019





Barings Global High Yield Strategies Fund (the “Fund”) generated a gross return of -3.90% on the Share Tranche S EURAccumulation underperformed against the performance comparator with a return of -3.75%* during the reporting period.

The global high yield markets were producing positive returns through the first three quarters of 2018. Loans were outperforming bonds, and the U.S. was outperforming Europe. During the fourth quarter the global high yield markets sold offmostly due to technical pressures as retail fund flows turned materially negative. In our opinion, this does not reflect any changein the outlook for defaults, which are widely expected to remain low, but rather investor sentiment resulting from the manygeopolitical headwinds throughout 2018. For the full year, loans were one of the few assets classes to produce positive returns,while high yield bonds (due to the fourth quarter sell off) ended up with negative returns for the full year.

The U.S. high yield market experienced a period of higher than normal volatility in the fourth quarter which resulted in 2018ending with a negative return. Negative investor sentiment as a result of geopolitical headwinds, trade tensions and a sell-offin equity markets brought about risk-aversion in the market which led to significant spread-widening and underperformanceduring the year. As the market became more risk-off, this led to more significant underperformance of the lower end of theratings spectrum with triple-Cs underperforming the broader market followed by double-Bs and single-Bs. Returns weregenerally negative across industries most notably within the Automotive and the Energy sectors which saw more significantdeclines during the year. The Healthcare, the Telecommunications, and the Utility sectors ended modestly positive. The optionadjusted spread and the yield-to-worst widened by 168 bps and 208 bps to end at 540 bps and 8.01%, respectively. U.S. highyield bond new issuance was fell to a post-crisis low in 2018 with $168.3 billion pricing bringing issuance net of refinancingactivity to $64.1 billion. U.S. high yield retail mutual fund outflows totals $35.0 billion. Default activity in the U.S. high yield bondmarket remained at historic lows throughout 2018, ending the year at 1.87%, up slightly from 1.28% at the end of 2017.


European high yield bonds returned negatively in 2018 mainly driven by the recent macro volatility and technical factors(significant sell-off in the Equity market) rather than any specific deterioration in the quality of the underlying issuers. From arating’s perspective, Single B bonds materially underperformed the higher rated BB portion of the market during the year 2018while triple C were the main detractor of the yearly performance. The option adjusted spread widened for the third consecutivemonth to end at 524bps, the highest since April 2016. It should be noted that Single-B rated bond are trading with an OAS of717bps, which we feel is providing a significant risk premium relative to the risk in the underlying market. All sectors exceptHealthcare and Technology & Electronics posted negative returns for the year. For the full year of 2018, we did see theproportion of senior secured supply rise as a percentage of overall issuance in Europe, with 46% of the full year issuance beingsenior secured (per J.P. Morgan).





Barings Global High Yield Strategies Fund (continued)


The Fund underperformed its benchmark in 2018. Since its inception in April 2012, the Fund has outperformed its benchmark.


Barings LLC

April 2019





Global high yield returns in the fourth quarter of 2018 were negative driven by a broader risk-off sentiment and continued crudeoil price weakness. Lower rated credits saw the most substantial declines, exacerbated by poor liquidity, and the BofAML CCCHigh Yield Developed Market Index declined 9.53% in the quarter, when hedged to USD and ended the year down 4.69%.

In the three months to December, Barings Global Special Situations Credit Fund 1 (the “Fund”) achieved capital growth, basedon offer prices, of 18.12% which leaves the Fund's capital growth since inception, based on offer prices, at 45.57%. Theunrealised IRR since inception (18 June 2012), based on offer prices, now stands at 12.35%. It is worth noting that the portfolioNAV is now concentrated across a small number of positions and that, consequently, the future performance of the Fund willbe determined by a small number of equity holdings.


Barings LLC

April 2019





Global Multi-Credit Strategy Fund 1 (the “Fund”) generated a gross return of -2.75% on the Share Tranche Q GBP Distributionand underperformed against the performance comparator with a return of 4.81%* during the reporting period.











Global Multi-Credit Strategy Fund 1 (continued)


The Fund underperformed its benchmark in 2018. Since its inception in November 2012, the Fund has outperformed itsbenchmark.


Barings LLC

April 2019



Global Multi-Credit Strategy Fund 2 (the “Fund”) generated a gross return of 0.80% on the Share Tranche A USD Accumulationand underperformed against the performance comparator with a return of 7.00% during the reporting period. The Fund has aflat 7.00% annual return target that we are looking to achieve over a cycle. Fund performance will deviate from this on a shorterterm basis (i.e. year by year) where we see more market volatility.











Global Multi-Credit Strategy Fund 2 (continued)


The Fund underperformed its benchmark in 2018. Since its inception in April 2013, the Fund has underperformed itsbenchmark.


Barings LLC

April 2019



European Loan Strategy Fund 1 (the “Fund”) generated a gross return of 0.23% on the Share Tranche U EUR Distribution andunderperformed against the performance comparator with a return of 0.53%* during the reporting period.


The Fund underperformed its benchmark in 2018. Since its inception in September 2015 the Fund has outperformed itsbenchmark.



Barings LLC

April 2019





Barings Global Loan and High Yield Bond Fund (the “Fund”) generated a gross return of -0.98% on the Share Tranche A USDAccumulation and underperformed against the performance comparator with a return of -0.20%* during the reporting period.











Barings Global Loan and High Yield Bond Fund (continued)


The Fund underperformed its benchmark in 2018. Since its inception in June 2017, the Fund has underperformed itsbenchmark.


Barings LLC

April 2019





Barings U.S. Loan Fund (the “Fund”) generated a gross return of 0.91% on the Share Tranche A USD Distribution andunderperformed against the performance comparator with a return of 1.14%* for the 12 months to 31 December 2018.


Since its inception in September 2018, the Fund has underperformed its benchmark.



Barings LLC

April 2019


Net change from subsidiaries at fair value through profit or lossIncome from investments and derivatives- Realised gain on investments and other derivative contracts- Realised loss on investments and other derivative contracts- Change in unrealised gain on investments and

other derivative contracts- Change in unrealised loss on investments and

other derivative contracts

Net operating (loss)/income

Operating expenses

(Loss)/profit from operations before finance costs

Finance costs

Distributions

(Loss)/profit from operations after finance costs

Total comprehensive (loss)/income for the financial year

attributable to holders of redeemable shares

There are no recognised gains or losses in the financial period other than those dealt with in the Statement of Comprehensive Income. All results are from continuingactivities.

The accompanying notes are an integral part of these financial statements.

Note

2

7

13

Barings

Global

Loan Fund

31 Dec 2018

US$

127,133,799

722,190,400(1,065,156,573)

-

(143,584,896)––––––––––––––

(359,417,270)

––––––––––––––(50,560,038)

––––––––––––––(409,977,308)

(161,334,447)––––––––––––––

(571,311,755)

––––––––––––––

(571,311,755)

––––––––––––––––––––––––––––

Barings

European

Loan Fund

31 Dec 2018

€

45,618,653

181,580,537(94,311,184)

13,896,207

-––––––––––––––

146,784,213

––––––––––––––(37,931,685)

––––––––––––––108,852,528

(55,636,041)––––––––––––––

53,216,487

––––––––––––––

53,216,487

––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

31 Dec 2018

€

3,632,704

--

-

-––––––––––––––

3,632,704

––––––––––––––(321,033)

––––––––––––––3,311,671

(1,507,696)––––––––––––––

1,803,975

––––––––––––––

1,803,975

––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

31 Dec 2018

€

-

3,659,431-

(5,244,709)

-––––––––––––––

(1,585,278)

––––––––––––––(264,925)

––––––––––––––(1,850,203)

-––––––––––––––

(1,850,203)

––––––––––––––

(1,850,203)

––––––––––––––––––––––––––––


Statements of Comprehensive Incomefor the financial year ended 31 December 2018



Statements of Comprehensive Incomefor the financial year ended 31 December 2018 (continued)




Net operating income/(loss)

Operating expenses

Profit/(loss) from operations before finance costs

Finance costs

Distributions

Profit/(loss) from operations after finance costs

Total comprehensive income/(loss) for the financial year




Note

2

7

13

Barings

Global Special

Situations

Credit Fund 1

31 Dec 2018

US$

2,224,944

--

-

-––––––––––––––

2,224,944

––––––––––––––(193,811)

––––––––––––––2,031,133

-––––––––––––––

2,031,133

––––––––––––––

2,031,133

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 1

31 Dec 2018

GBP£

(5,506,629)

--

-

-––––––––––––––

(5,506,629)

––––––––––––––(1,125,052)

––––––––––––––(6,631,681)

(11,731,732)––––––––––––––

(18,363,413)

––––––––––––––

(18,363,413)

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

31 Dec 2018

US$

2,189,557

--

-

-––––––––––––––

2,189,557

––––––––––––––(1,811,471)

––––––––––––––378,086

(19,756,156)––––––––––––––

(19,378,070)

––––––––––––––

(19,378,070)

––––––––––––––––––––––––––––

European

Loan Strategy

Fund 1

31 Dec 2018

€

656,529

1,016,867(315,709)

-

1,201,716––––––––––––––

2,559,403

––––––––––––––(1,555,032)

––––––––––––––1,004,371

(11,261,710)––––––––––––––

(10,257,339)

––––––––––––––

(10,257,339)

––––––––––––––––––––––––––––







Net operating loss

Operating expenses

Loss from operations before finance costs

Finance costs

Distributions

Loss from operations after finance costs

Total comprehensive loss for the financial year


*This Fund launched on 31 August 2018. Amounts reported above are for the period from the date of launch.



Note

2

7

13

Barings

Global Loan

and High Yield

Bond Fund

31 Dec 2018

US$

267,468

26,375,465(40,600,634)

-

(15,700,929)––––––––––––––

(29,658,630)

––––––––––––––(2,995,891)

––––––––––––––(32,654,521)

(14,822,629)––––––––––––––

(47,477,150)

––––––––––––––

(47,477,150)

––––––––––––––––––––––––––––

Barings

U.S. Loan

Fund*

31 Dec 2018

US$

(40,098,265)

5,272,929(13,715,412)

10,233,553

(293,993)––––––––––––––

(38,601,188)

––––––––––––––(1,625,204)

––––––––––––––(40,226,392)

(8,956,636)––––––––––––––

(49,183,028)

––––––––––––––

(49,183,028)

––––––––––––––––––––––––––––

Barings

Global

Investment

Funds Plc

31 Dec 2018

US$

142,258,160

973,093,456(1,230,863,900)

21,351,453

(158,165,202)––––––––––––––

(252,326,033)

––––––––––––––(105,853,175)

––––––––––––––(358,179,208)

(300,980,430)––––––––––––––

(659,159,638)

––––––––––––––

(659,159,638)

––––––––––––––––––––––––––––


Note

Net change from subsidiaries at fair value through profit or loss 2Income from investments and derivatives- Realised gain on investments and other

derivative contracts- Realised loss on investments and other

derivative contracts- Change in unrealised gain on investments and



Net operating income/(loss)

Operating expenses 7

Profit/(loss) from operations before finance costs

Finance costs

Distributions 13

Profit/(loss) from operations after finance costs

Total comprehensive income/(loss) for the financial year




Barings

Global

Loan Fund

31 Dec 2017

US$

426,963,360

690,147,135

(481,101,898)

252,515,090

-––––––––––––––

888,523,687

––––––––––––––(49,744,521)

––––––––––––––838,779,166

(168,678,766)––––––––––––––

670,100,400

––––––––––––––

670,100,400

––––––––––––––––––––––––––––

Barings

European

Loan Fund

31 Dec 2017

€

270,252,273

111,024,970

(222,435,831)

-

(44,316,997)––––––––––––––

114,524,415

––––––––––––––(35,764,457)

––––––––––––––78,759,958

(46,758,143)––––––––––––––

32,001,815

––––––––––––––

32,001,815

––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

31 Dec 2017

€

(3,507,244)

-

-

-

-––––––––––––––

(3,507,244)

––––––––––––––(441,367)

––––––––––––––(3,948,611)

(580,673)––––––––––––––

(4,529,284)

––––––––––––––

(4,529,284)

––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

31 Dec 2017

€

-

11,408,101

-

-

(7,623,904)––––––––––––––

3,784,197

––––––––––––––(391,604)

––––––––––––––3,392,593

-––––––––––––––

3,392,593

––––––––––––––

3,392,593

––––––––––––––––––––––––––––

Barings

Global Special

Situations

Credit Fund 1

31 Dec 2017

US$

2,286,104

-

-

-

-––––––––––––––

2,286,104

––––––––––––––(264,494)

––––––––––––––2,021,610

-––––––––––––––

2,021,610

––––––––––––––

2,021,610

––––––––––––––––––––––––––––


Statements of Comprehensive Incomefor the financial year ended 31 December 2017




Note

Net change from subsidiaries at fair value through profit or loss 2Income from investments and derivatives- Realised gain on investments and other

derivative contracts- Realised loss on investments and other

derivative contracts- Change in unrealised gain on investments and



Net operating income

Operating expenses 7

Profit from operations before finance costs

Finance costs

Distributions 13

Profit from operations after finance costs

Total comprehensive income for the financial year




Global

Multi-Credit

Strategy

Fund 1

31 Dec 2017

GBP£

9,156,421

-

-

-

-––––––––––––––

9,156,421

––––––––––––––(854,985)

––––––––––––––8,301,436

(8,119,991)––––––––––––––

181,445

––––––––––––––

181,445

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

31 Dec 2017

US$

27,273,907

-

-

-

-––––––––––––––

27,273,907

––––––––––––––(1,856,575)

––––––––––––––25,417,332

(20,630,894)––––––––––––––

4,786,438

––––––––––––––

4,786,438

––––––––––––––––––––––––––––

European

Loan Strategy

Fund 1

31 Dec 2017

€

13,207,947

9,516,483

(12,059,152)

-

(1,185,397)––––––––––––––

9,479,881

––––––––––––––(1,515,036)

––––––––––––––7,964,845

(7,427,402)––––––––––––––

537,443

––––––––––––––

537,443

––––––––––––––––––––––––––––

Barings

Global Loan

and High Yield

Bond Fund

31 Dec 2017

US$

7,966,331

19,143,738

(18,812,859)

10,958,690

(163,028)––––––––––––––

19,092,872

––––––––––––––(1,827,448)

––––––––––––––17,265,424

(3,880,880)––––––––––––––

13,384,544

––––––––––––––

13,384,544

––––––––––––––––––––––––––––

Barings

Global

Investment

Funds Plc

31 Dec 2017

US$

794,267,844

859,313,745

(766,528,851)

263,609,695

(60,566,111)––––––––––––––

1,090,096,322

––––––––––––––(98,137,937)

––––––––––––––991,958,385

(266,020,197)––––––––––––––

725,938,188

––––––––––––––

725,938,188

––––––––––––––––––––––––––––



Statements of Financial Positionfor the financial year ended 31 December 2018

Financial assets

Financial assets at fair value through profit or loss:- Loans to Subsidiaries- Investment funds- Forward foreign exchange contracts

Other receivablesReceivable for fund shares soldCash and cash equivalents

Total assets

Financial liabilities

Financial liabilities held for trading:- Forward foreign exchange contracts

Income distribution payablePayable for fund shares redeemedOther payables and accrued expenses

Total liabilities

Represented by:

Net assets attributable to holders of redeemable shares


Note

24

10

3

10

5

12

Barings

Global

Loan Fund

31 Dec 2018

US$

7,979,084,537-

12,043,536

8,316--

––––––––––––––7,991,136,389

––––––––––––––

(45,094,990)

-(3,955,582)(3,837,141)

––––––––––––––(52,887,713)

––––––––––––––

7,938,248,676

––––––––––––––––––––––––––––

Barings

European

Loan Fund

31 Dec 2018

€

5,312,988,365-

1,232,972

-362,912

-––––––––––––––

5,314,584,249

––––––––––––––

(8,496,522)

-(15,051,446)(2,972,226)

––––––––––––––(26,520,194)

––––––––––––––

5,288,064,055

––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

31 Dec 2018

€

12,897,739--

---

––––––––––––––12,897,739

––––––––––––––

-

--

(10,576)––––––––––––––

(10,576)

––––––––––––––

12,887,163

––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

31 Dec 2018

€

-39,273,772

-

--

77,896––––––––––––––

39,351,668

––––––––––––––

-

--

(152,628)––––––––––––––

(152,628)

––––––––––––––

39,199,040

––––––––––––––––––––––––––––



Statements of Financial Positionfor the financial year ended 31 December 2018 (continued)

Financial assets

Financial assets at fair value through profit or loss:- Loans to Subsidiaries- Investment funds- Forward foreign exchange contracts

Other receivablesReceivable for fund shares soldCash and cash equivalents

Total assets


Financial liabilities held for trading:- Forward foreign exchange contracts

Income distribution payablePayable for fund shares redeemedOther payables and accrued expenses

Total liabilities

Represented by:

Net assets attributable to holders of redeemable shares


Note

24

10

3

10

5

12

Barings

Global Special

Situations

Credit Fund 1

31 Dec 2018

US$

9,609,618--

---

––––––––––––––9,609,618

––––––––––––––

-

--

(22,571)––––––––––––––

(22,571)

––––––––––––––

9,587,047

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 1

31 Dec 2018

GBP£

190,903,535--

3,094--

––––––––––––––190,906,629

––––––––––––––

-

--

(91,674)––––––––––––––

(91,674)

––––––––––––––

190,814,955

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

31 Dec 2018

US$

292,320,943--

3,191--

––––––––––––––292,324,134

––––––––––––––

-

(4,856,223)-

(154,887)––––––––––––––

(5,011,110)

––––––––––––––

287,313,024

––––––––––––––––––––––––––––

European

Loan Strategy

Fund 1

31 Dec 2018

€

271,963,213--

-25,159,827

-––––––––––––––

297,123,040

––––––––––––––

-

(2,872,101)-

(135,122)––––––––––––––

(3,007,223)

––––––––––––––

294,115,817

––––––––––––––––––––––––––––



Statements of Financial Positionfor the financial year ended 31 December 2017

Note

Financial assets

Financial assets designated at fair value through profit or loss: 2- Loans to Subsidiaries 4- Investment fundsFinancial assets held for trading:- Forward foreign exchange contracts 10

Other receivablesReceivable for fund shares soldCash and cash equivalents 3

Total assets


Financial liabilities held for trading:- Forward foreign exchange contracts 10

Income distribution payablePayable for fund shares redeemedOther payables and accrued expenses 5

Total liabilities

Represented by:

Net assets attributable to holders of redeemable shares 12


Barings

Global

Loan Fund

31 Dec 2017

US$

9,363,009,926-

111,624,810

8,316855,762

-––––––––––––––

9,475,498,814

––––––––––––––

(1,091,266)

-(1,385,146)(4,474,025)

––––––––––––––(6,950,437)

––––––––––––––

9,468,548,377

––––––––––––––––––––––––––––

Barings

European

Loan Fund

31 Dec 2017

€

6,054,632,113-

914,254

-61,004,181

-––––––––––––––

6,116,550,548

––––––––––––––

(22,074,011)

-(5,173,136)(3,362,079)

––––––––––––––(30,609,226)

––––––––––––––

6,085,941,322

––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

31 Dec 2017

€

38,117,566-

-

---

––––––––––––––38,117,566

––––––––––––––

-

--

(34,378)––––––––––––––

(34,378)

––––––––––––––

38,083,188

––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

31 Dec 2017

€

-56,065,964

-

--

179,855––––––––––––––

56,245,819

––––––––––––––

-

--

(196,576)––––––––––––––

(196,576)

––––––––––––––

56,049,243

––––––––––––––––––––––––––––

Barings

Global Special

Situations

Credit Fund 1

31 Dec 2017

US$

11,023,593-

-

---

––––––––––––––11,023,593

––––––––––––––

-

--

(17,679)––––––––––––––

(17,679)

––––––––––––––

11,005,914

––––––––––––––––––––––––––––



Statements of Financial Positionfor the financial year ended 31 December 2017 (continued)

Note

Financial assets

Financial assets designated at fair value through profit or loss: 2- Loans to Subsidiaries 4- Investment fundsFinancial assets held for trading:- Forward foreign exchange contracts 10

Other receivablesReceivable for fund shares soldCash and cash equivalents 3

Total assets


Financial liabilities held for trading:- Forward foreign exchange contracts 10

Income distribution payablePayable for fund shares redeemedOther payables and accrued expenses 5

Total liabilities

Represented by:

Net assets attributable to holders of redeemable shares 12


Global

Multi-Credit

Strategy

Fund 1

31 Dec 2017

GBP£

197,543,969-

-

---

––––––––––––––197,543,969

––––––––––––––

-

--

(97,332)––––––––––––––

(97,332)

––––––––––––––

197,446,637

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

31 Dec 2017

US$

311,515,833-

-

---

––––––––––––––311,515,833

––––––––––––––

-

(4,661,638)-

(163,101)––––––––––––––

(4,824,739)

––––––––––––––

306,691,094

––––––––––––––––––––––––––––

European

Loan Strategy

Fund 1

31 Dec 2017

€

282,142,289-

-

---

––––––––––––––282,142,289

––––––––––––––

(1,201,716)

(2,872,907)-

(146,491)––––––––––––––

(4,221,114)

––––––––––––––

277,921,175

––––––––––––––––––––––––––––

Barings

Global Loan

and High Yield

Bond Fund

31 Dec 2017

US$

293,166,174-

10,958,690

---

––––––––––––––304,124,864

––––––––––––––

(163,028)

--

(306,254)––––––––––––––

(469,282)

––––––––––––––

303,655,582

––––––––––––––––––––––––––––

Barings

Global

Investment

Funds Plc

31 Dec 2017

US$

17,894,339,33556,036,210

123,680,467

8,31674,051,586

215,799––––––––––––––18,148,331,713

––––––––––––––

(29,181,659)

(8,108,693)(7,592,130)(9,579,337)

––––––––––––––(54,461,819)

––––––––––––––

18,093,869,894

––––––––––––––––––––––––––––


Balance at 1 January 2018

Total comprehensive (loss)/income for the financial yearattributable to holders of redeemable shares

Issue of redeemable shares during the financial yearRedemption of redeemable shares during the financial year

Foreign currency translation

Balance at 31 December 2018


Note

2

Barings

Global

Loan Fund

31 Dec 2018

US$

9,468,548,377

(571,311,755)

929,832,961(1,888,820,907)

-––––––––––––––

7,938,248,676

––––––––––––––––––––––––––––

Barings

European

Loan Fund

31 Dec 2018

€

6,085,941,322

53,216,487

1,201,738,823(2,052,832,577)

-––––––––––––––

5,288,064,055

––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

31 Dec 2018

€

38,083,188

1,803,975

-(27,000,000)

-––––––––––––––

12,887,163

––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

31 Dec 2018

€

56,049,243

(1,850,203)

-(15,000,000)

-––––––––––––––

39,199,040

––––––––––––––––––––––––––––


Statements of Changes in Net Assets Attributable to Holders of Redeemable Sharesfor the financial year ended 31 December 2018



Statements of Changes in Net Assets Attributable to Holders of Redeemable Sharesfor the financial year ended 31 December 2018 (continued)


Total comprehensive income/(loss) for the financial yearattributable to holders of redeemable shares





Note

2

Barings

Global Special

Situations

Credit Fund 1

31 Dec 2018

US$

11,005,914

2,031,133

-(3,450,000)

-––––––––––––––

9,587,047

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 1

31 Dec 2018

GBP£

197,446,637

(18,363,413)

11,731,731-

-––––––––––––––

190,814,955

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

31 Dec 2018

US$

306,691,094

(19,378,070)

--

-––––––––––––––

287,313,024

––––––––––––––––––––––––––––

European

Loan Strategy

Fund 1

31 Dec 2018

€

277,921,175

(10,257,339)

142,301,313(115,849,332)

-––––––––––––––

294,115,817

––––––––––––––––––––––––––––





Total comprehensive loss for the financial yearattributable to holders of redeemable shares






Note

2

Barings

Global Loan

and High Yield

Bond Fund

31 Dec 2018

US$

303,655,582

(47,477,150)

17,407,847(77,896,511)

-––––––––––––––

195,689,768

––––––––––––––––––––––––––––

Barings

U.S. Loan

Fund*

31 Dec 2018

US$

-

(49,183,028)

1,363,278,548(54,406,731)

-––––––––––––––

1,259,688,789

––––––––––––––––––––––––––––

Barings

Global

Investment

Funds Plc

31 Dec 2018

US$

18,093,869,894

(659,159,638)

3,908,259,923(4,621,995,628)

(337,763,052)––––––––––––––16,383,211,499

––––––––––––––––––––––––––––


Note


Total comprehensive income/(loss) for the financial yearattributable to holders of redeemable shares


Foreign currency translation 2



Barings

Global

Loan Fund

31 Dec 2017

US$

7,878,360,792

670,100,400

1,984,141,447(1,064,054,262)

-––––––––––––––

9,468,548,377

––––––––––––––––––––––––––––

Barings

European

Loan Fund

31 Dec 2017

€

4,528,101,041

32,001,815

2,340,010,375(814,171,909)

-––––––––––––––

6,085,941,322

––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

31 Dec 2017

€

33,012,472

(4,529,284)

9,600,000-

-––––––––––––––

38,083,188

––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

31 Dec 2017

€

72,656,650

3,392,593

-(20,000,000)

-––––––––––––––

56,049,243

––––––––––––––––––––––––––––

Barings

Global Special

Situations

Credit Fund 1

31 Dec 2017

US$

28,434,304

2,021,610

-(19,450,000)

-––––––––––––––

11,005,914

––––––––––––––––––––––––––––


Statements of Changes in Net Assets Attributable to Holders of Redeemable Sharesfor the financial year ended 31 December 2017




Note


Total comprehensive income for the financial yearattributable to holders of redeemable shares





Global

Multi-Credit

Strategy

Fund 1

31 Dec 2017

GBP£

129,145,201

181,445

68,119,991-

-––––––––––––––

197,446,637

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

31 Dec 2017

US$

301,904,656

4,786,438

--

-––––––––––––––

306,691,094

––––––––––––––––––––––––––––

European

Loan Strategy

Fund 1

31 Dec 2017

€

255,783,732

537,443

168,764,272(147,164,272)

-––––––––––––––

277,921,175

––––––––––––––––––––––––––––

Barings

Global Loan

and High Yield

Bond Fund

31 Dec 2017

US$

-

13,384,544

290,271,038-

-––––––––––––––

303,655,582

––––––––––––––––––––––––––––

Barings

Global

Investment

Funds Plc

31 Dec 2017

US$

13,504,248,342

725,938,188

5,225,058,360(2,196,875,715)

835,500,719––––––––––––––18,093,869,894

––––––––––––––––––––––––––––


Total comprehensive (loss)/income for the financial

year attributable to holders of redeemable shares

Adjustments for:Net movement on financial assetsNet movement in unrealised loss/(gain) on derivativesDistributions

Operating cash inflows before

movements in working capital

Increase in receivablesDecrease in other payables

Net cash inflows from operating activities

Financing activities

Proceeds from subscriptionsPayments on redemptionsDistributions paid to shareholders

Net cash outflows from financing activities

Net decrease in cash and cash equivalents

Cash and cash equivalents at 1 January 2018


Cash and cash equivalents at 31 December 2018

*During the financial year an inspecie transaction took place on this Fund, only the cash element of this transaction has been included here. Please see Note 8 for furtherdetails.


Note

2

Barings

Global

Loan Fund

31 Dec 2018

US$

(571,311,755)

1,383,925,389143,584,998161,334,447

––––––––––––––

1,117,533,079

––––––––––––––-

(636,884)––––––––––––––

1,116,896,195

––––––––––––––

846,889,365(1,886,250,470)

(77,535,090)––––––––––––––(1,116,896,195)

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

Barings

European

Loan Fund*

31 Dec 2018

€

53,216,487

237,584,070(13,896,207)55,636,041

––––––––––––––

332,540,391

––––––––––––––-

(389,853)––––––––––––––

332,150,538

––––––––––––––

1,262,380,092(1,538,894,589)

(55,636,041)––––––––––––––

(332,150,538)

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

31 Dec 2018

€

1,803,975

25,219,827-

1,507,696––––––––––––––

28,531,498

––––––––––––––-

(23,802)––––––––––––––

28,507,696

––––––––––––––

-(27,000,000)(1,507,696)

––––––––––––––(28,507,696)

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

31 Dec 2018

€

(1,850,203)

16,792,193--

––––––––––––––

14,941,990

––––––––––––––-

(43,949)––––––––––––––

14,898,041

––––––––––––––

-(15,000,000)

-––––––––––––––

(15,000,000)

––––––––––––––(101,959)

179,855

-––––––––––––––

77,896

––––––––––––––––––––––––––––


Statements of Cash Flowsfor the financial year ended 31 December 2018



Statements of Cash Flowsfor the financial year ended 31 December 2018 (continued)

Total comprehensive income/(loss) for the financial


Adjustments for:Net movement on financial assetsNet movement in unrealised (gain) on derivativesDistributions

Operating cash inflows before


Increase in receivablesIncrease/(decrease) in other payables

Net cash inflows from operating activities



Net cash outflows from financing activities

Net increase in cash and cash equivalents





Note

2

Barings

Global Special

Situations

Credit Fund 1

31 Dec 2018

US$

2,031,133

1,413,975--

––––––––––––––

3,445,108

––––––––––––––-

4,892––––––––––––––

3,450,000

––––––––––––––

-(3,450,000)

-––––––––––––––

(3,450,000)

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 1

31 Dec 2018

GBP£

(18,363,413)

6,640,434-

11,731,732––––––––––––––

8,753

––––––––––––––(3,094)(5,659)

––––––––––––––-

––––––––––––––

---

––––––––––––––-

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

31 Dec 2018

US$

(19,378,070)

19,194,891-

19,756,156––––––––––––––

19,572,977

––––––––––––––(3,191)(8,215)

––––––––––––––19,561,571

––––––––––––––

--

(19,561,571)––––––––––––––

(19,561,571)

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

European

Loan Strategy

Fund 1

31 Dec 2018

€

(10,257,339)

10,179,076(1,201,716)11,261,710

––––––––––––––

9,981,731

––––––––––––––-

(11,369)––––––––––––––

9,970,362

––––––––––––––

116,264,508(115,849,332)(10,385,538)

––––––––––––––(9,970,362)

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––




Total comprehensive loss for the financial



Operating cash inflows/(outflows) before


Increase in receivables(Decrease)/increase in other payables

Net cash inflows/(outflows) from operating activities



Net cash (outflows)/inflows from financing activities

Net decrease in cash and cash equivalents




*This Fund launched on 31 August 2018. During the financial period an inspecie transaction took place on this Fund, only the cash element of this transaction has been*included here. Please see Note 8 for further details.


Note

2

Barings

Global Loan

and High Yield

Bond Fund

31 Dec 2018

US$

(47,477,150)

92,357,59415,700,92914,822,629

––––––––––––––

75,404,002

––––––––––––––-

(92,709)––––––––––––––

75,311,293

––––––––––––––

2,585,218(77,896,511)

-––––––––––––––

(75,311,293)

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

Barings

U.S. Loan

Fund*

31 Dec 2018

US$

(49,183,028)

(133,196,537)(9,939,560)8,956,636

––––––––––––––

(183,362,489)

––––––––––––––-

1,625,204––––––––––––––

(181,737,285)

––––––––––––––

242,819,700(52,125,779)(8,956,636)

––––––––––––––181,737,285

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

Barings

Global

Investment

Funds Plc

31 Dec 2018

US$

(659,159,638)

1,708,303,613131,573,651300,980,430

––––––––––––––

1,481,698,056

––––––––––––––(7,302)

332,711––––––––––––––

1,482,023,465

––––––––––––––

2,715,183,748(4,012,155,435)

(185,546,263)––––––––––––––(1,482,517,950)

––––––––––––––(494,485)

215,799

367,934––––––––––––––

89,248

––––––––––––––––––––––––––––


Note

Total comprehensive income/(loss) for the financial



Operating cash (outflows)/inflows before


Increase/(decrease) in other payables

Net cash (outflows)/inflows from operating activities



Net cash inflows/(outflows) from financing activities

Net (decrease)/increase in cash and cash equivalents





Barings

Global

Loan Fund

31 Dec 2017

US$

670,100,400

(1,349,390,479)(252,515,090)168,678,766

––––––––––––––

(763,126,403)

––––––––––––––728,938

––––––––––––––(762,397,465)

––––––––––––––

1,993,745,347(1,062,669,116)

(168,678,766)––––––––––––––

762,397,465

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

Barings

European

Loan Fund

31 Dec 2017

€

32,001,815

(1,499,030,392)44,316,99746,758,143

––––––––––––––

(1,375,953,437)

––––––––––––––805,283

––––––––––––––(1,375,148,154)

––––––––––––––

2,219,703,735(797,797,453)(46,758,143)

––––––––––––––1,375,148,139

––––––––––––––(15)

15

-––––––––––––––

-

––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

31 Dec 2017

€

(4,529,284)

(4,507,444)-

580,673––––––––––––––

(8,456,055)

––––––––––––––(3,032)

––––––––––––––(8,459,087)

––––––––––––––

9,600,000-

(1,140,913)––––––––––––––

8,459,087

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

31 Dec 2017

€

3,392,593

16,703,100--

––––––––––––––

20,095,693

––––––––––––––65,465

––––––––––––––20,161,158

––––––––––––––

-(20,000,000)

-––––––––––––––

(20,000,000)

––––––––––––––161,158

18,697

-––––––––––––––

179,855

––––––––––––––––––––––––––––

Barings

Global Special

Situations

Credit Fund 1

31 Dec 2017

US$

2,021,610

17,436,438--

––––––––––––––

19,458,048

––––––––––––––(8,048)

––––––––––––––19,450,000

––––––––––––––

-(19,450,000)

-––––––––––––––

(19,450,000)

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––


Statements of Cash Flowsfor the financial year ended 31 December 2017




Note

Total comprehensive income for the financial


Adjustments for:Net movement on financial assetsNet movement in unrealised (gain)/loss on derivativesDistributions

Operating cash (outflows)/inflows before


Increase/(decrease) in other payables

Net cash (outflows)/inflows from operating activities



Net cash inflows/(outflows) from financing activities

Net increase in cash and cash equivalents





Global

Multi-Credit

Strategy

Fund 1

31 Dec 2017

GBP£

181,445

(68,334,849)-

8,119,991––––––––––––––

(60,033,413)

––––––––––––––33,413

––––––––––––––(60,000,000)

––––––––––––––

70,059,150-

(10,059,150)––––––––––––––

60,000,000

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

31 Dec 2017

US$

4,786,438

(4,319,962)-

20,630,894––––––––––––––

21,097,370

––––––––––––––4,779

––––––––––––––21,102,149

––––––––––––––

--

(21,102,149)––––––––––––––

(21,102,149)

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

European

Loan Strategy

Fund 1

31 Dec 2017

€

537,443

(24,435,282)1,185,3977,427,402

––––––––––––––

(15,285,040)

––––––––––––––9,277

––––––––––––––(15,275,763)

––––––––––––––

168,764,272(147,164,272)

(6,324,237)––––––––––––––

15,275,763

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

Barings

Global Loan

and High Yield

Bond Fund

31 Dec 2017

US$

13,384,544

(293,166,174)(10,795,662)

3,880,880––––––––––––––

(286,696,412)

––––––––––––––306,254

––––––––––––––(286,390,158)

––––––––––––––

290,271,038-

(3,880,880)––––––––––––––

286,390,158

––––––––––––––-

-

-––––––––––––––

-

––––––––––––––––––––––––––––

Barings

Global

Investment

Funds Plc

31 Dec 2017

US$

725,938,188

(3,435,963,535)(211,575,832)266,020,197

––––––––––––––

(2,655,580,982)

––––––––––––––2,072,498

––––––––––––––(2,653,508,484)

––––––––––––––

5,100,399,397(2,176,873,279)

(268,396,511)––––––––––––––

2,655,129,607

––––––––––––––1,621,123

19,697

(1,425,021)––––––––––––––

215,799

––––––––––––––––––––––––––––



Notes to the Financial Statementsfor the financial year ended 31 December 2018

1. General information

Barings Global Investment Funds Plc (the “Company”) is incorporated as an Irish open-ended umbrella investment companywith variable capital. The Company is supervised by the Central Bank of Ireland (the “Central Bank”). The registered office ofthe Company is 70 Sir John Rogerson’s Quay, Dublin 2, D02 R296, Ireland.

The Company has segregated liability between funds. Shares representing interests in different funds may be issued from timeto time by the Directors. As at 31 December 2018, the Company had ten active funds (together the “Funds”).

The majority of the Funds’ investments are held through wholly owned subsidiaries (the “Subsidiaries”), with the exception ofBarings Global High Yield Strategies Fund whose investments are held directly. The Subsidiaries are incorporated and taxresident in Ireland.

The Funds are managed by Baring Asset Management Limited for all of the Funds and Barings LLC for all of the Funds withthe exception of Mezzanine Loan Fund 1, together (the “Investment Managers”).

The following notes refer to the Investment Managers but does not distinguish between them.

2. Statement of compliance and basis of preparation

The financial statements have been prepared in accordance with European Union (“EU”) endorsed International FinancialReporting Standards (“IFRS”) and interpretations adopted by the International Accounting Standards Board (“IASB”) and theCompanies Act, 2014, applicable to companies reporting under IFRS.

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financialassets, financial liabilities and derivative financial instruments at fair value through profit or loss.

As explained below the Company qualifies as an investment entity and is therefore only required to prepare individual financialstatements under IFRS as adopted by the EU. For the purpose of complying with Irish Company Law’s group financial statementrequirement such financial statements are identical to these financial statements, as the Company is permitted by IFRS (asadopted by the EU) to include its subsidiary at fair value through profit or loss.

This is the first set of the Company’s annual financial statements in which IFRS 9 Financial Instruments has been applied.Changes to significant accounting policies are described in Note 2a.

Details of the Company’s accounting policies are included in Note 2b.

These financial statements were prepared on the going concern basis.

2a. Changes in significant accounting policies

The Company has initially applied IFRS 9 from 1 January 2018. IFRS 15 Revenue from Contracts with Customers is also effectivefrom 1 January 2018 but does not have a material effect on the Company’s financial statements.

As permitted by the transition provisions of IFRS 9, comparative information throughout these financial statements has not beenrestated to reflect the requirements of the standard.

Except for the changes below, the Company has consistently applied the accounting policies as set out in Note 2b to all periodspresented in these financial statements.

IFRS 9 Financial Instruments

IFRS 9 sets out requirements for recognising and measuring financial assets and financial liabilities. This standard replaces IAS39 Financial Instruments: Recognition and Measurement.

As a result of the adoption of IFRS 9, the Company has adopted consequential amendments to IAS 1 Presentation of FinancialStatements, which require:

- Impairment of financial assets to be presented in a separate line item in the statement of comprehensive income. UnderIAS 39, impairment was recognised when losses were incurred. The Company has no such losses to report.



Notes to the Financial Statementsfor the financial year ended 31 December 2018 (continued)

2a. Changes in significant accounting policies (continued)

IFRS 9 Financial Instruments (continued)

Additionally, the Company has adopted consequential amendments to IFRS 7 Financial Instruments: Disclosures, which areapplied to disclosures about 2018 but have not generally been applied to comparative information.

The adoption of IFRS 9 had no material impact on the net assets attributable to holders of redeemable shares of the Funds.

(a) Classification and measurement of financial assets and financial liabilities

IFRS 9 contains three principal classification categories for financial assets: measured at amortised cost, fair value throughother comprehensive income (“FVOCI”), and fair value through profit or loss (“FVTPL”). The classification of financial assetsunder IFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flowcharacteristics. IFRS 9 eliminates the previous IAS 39 categories of held to maturity, loans and receivables and available forsale. Under IFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are neverseparated. Instead, the hybrid financial instrument as a whole is assessed for classification.

IFRS 9 largely retains the existing requirements in IAS 39 for the classification and measurement of financial liabilities.

The adoption of IFRS 9 has not had a significant effect on the Company’s accounting policies related to financial liabilities andderivative financial instruments.

For an explanation of how the Company classifies and measures financial instruments and accounts for related gains andlosses under IFRS 9, see Note 2b.

The following table and the accompanying notes below explain the original measurement categories under IAS 39 and the newmeasurement categories under IFRS 9 for each class of the Company’s financial assets and financial liabilities as at 1 January2018.

Original classification New classification

Financial assets under IAS 39 under IFRS 9

Loans to Subsidiaries* Designated as at FVTPL FVTPLInvestment Funds Designated as at FVTPL FVTPLDerivative financial instruments Held-for-trading Mandatorily at FVTPLOther receivables Loans and receivables Amortised costReceivable for fund shares sold Loans and receivables Amortised costCash and cash equivalents Loans and receivables Amortised cost

*Refer to Note 4 for details regarding the classification of Loans to Subsidiaries at FVTPL under IFRS 10.

Financial liabilities Original classification New classification

under IAS 39 under IFRS 9

Derivative financial instruments Held-for-trading Held-for-tradingIncome distribution payable Amortised cost Amortised costPayable for fund shares redeemed Amortised cost Amortised costOther payables and accrued expenses Amortised cost Amortised costNet assets attributable to holders of redeemable shares Amortised cost Amortised cost

(b) Impairment of financial assets

IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with an ‘expected credit loss’ (ECL) model. The new impairment modelapplies to financial assets measured at amortised cost and debt investments at FVOCI, but not investments in equityinstruments. Under IFRS 9, credit losses are recognised earlier than under IAS 39.




2a. Changes in significant accounting policies (continued)

(c) Transition

Changes in accounting policies resulting from the adoption of IFRS 9 have been applied retrospectively, except as describedbelow.- Comparative periods have not been restated. Differences in the carrying amounts of financial assets resulting from the

adoption of IFRS 9 are recognised in net assets attributable to holders of redeemable shares as at 1 January 2018.Accordingly, the information presented for 2017 does not reflect the requirements of IFRS 9, but rather those of IAS 39.There is no material impact to the financial statements as a result of this.

- The Company has used the exemption not to restate comparative periods. The amendments made by IFRS 9 to IAS 1introduced the requirement to present ‘interest income calculated using the effective interest method’ as a separate lineitem in the statement of comprehensive income. No reclassifications are required.

- The following assessments have been made on the basis of the facts and circumstances that existed at the date of initialapplication.o The determination of the business model within which a financial asset is held.o The revocation of previous designations of certain financial assets as measured at FVTPL.

2b. Significant accounting policies

(a) New standards, amendments and interpretations issued but not effective for the financial year beginning 1

January 2018 and not early adopted

IFRS 16 “Leases” was issued in January 2016 and will become effective for period beginning on or after 1 January 2019. Thenew standard is not expected to have any impact on the Company’s financial position, performance or disclosures in itsfinancial statements.

IFRS 17 “Insurance Contracts” was issued in May 2017 and will become effective for accounting periods beginning on or after1 January 2021. It applies to: insurance contracts, including reinsurance contracts, issued by an entity; reinsurance contractsheld by an entity; and investment contracts with discretionary participation features issued by an entity that issues insurancecontracts. An insurance contract is defined as ‘a contract under which one party (the issuer) accepts significant insurance riskfrom another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (theinsured event) adversely affects the policyholder’. The new standard is not expected to have a significant impact on theCompany’s financial position, performance or disclosures in its financial statements.

There are no other standards, interpretations or amendments to existing standards that are not yet effective that would beexpected to have a significant impact on the Company.

(b) Non-Consolidation and inclusion of Subsidiaries at fair value

The objective of IFRS 10 “Consolidated Financial Statements” (“IFRS 10”) is to establish principles for the presentation andpreparation of consolidated financial statements. It sets out how to apply the principle of control to identify whether an investorcontrols an investee and therefore must consolidate the investee. It also sets out the accounting requirements for thepreparation of consolidated financial statements. The amendments to IFRS 10 defined an investment entity and introduced anexemption from the consolidation requirements for investment entities. On adoption of IFRS 10, the Company determined thatit met the definition of an investment entity.

The Company has determined that it meets the definition of an investment entity as it displays the following characteristics:• obtains funds from multiple investors for the purpose of providing those investors with investment management services;• commits to its investors that its business purpose is to invest funds solely for returns from capital appreciation, investment

income, or both; and• measures and evaluates the performance of substantially all of its investments on a fair value basis.

As part of its assessment of IFRS 10, the Company has determined that the Subsidiaries continue to meet the definition of asubsidiary under the provisions of IFRS 10. Subsidiaries are entities under the Company’s control. The Company controls anentity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affectthose returns through power over the entity and this is deemed to be the case here.




2b. Significant accounting policies (continued)

(b) Non-Consolidation and inclusion of Subsidiaries at fair value (continued)

Investment entity

The Investment Managers of the Company have determined that the Subsidiaries:• do not provide services that relate to the Company’s investment activities; and• have mainly been set up for tax purposes.

As detailed above, the Subsidiaries are accounted for at fair value through profit or loss.

(c) Foreign currency translation

Functional and presentation currency

The functional currency and presentation currency of each Fund is the currency noted in its Supplement to the Prospectus andis relevant to the stated investment strategy and results of each Fund. Items included in the individual Fund’s financialstatements are measured using the currency of the primary economic environment in which it operates (the “functionalcurrency”). Each Fund has adopted its functional currency as the presentation currency. The functional currency of BaringsGlobal Loan Fund, Barings Global Special Situations Credit Fund 1, Global Multi-Credit Strategy Fund 2, Barings Global Loan,High Yield Bond Fund and Barings U.S. Loan Fund is US$, the functional currency of Barings European Loan Fund, MezzanineLoan Fund 1 and Barings Global High Yield Strategies Fund and European Loan Strategy Fund 1 is € and the functionalcurrency of Global Multi-Credit Strategy Fund 1 is £.

Transactions and balances

Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the dates ofthe transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translationat financial year end exchange rates of monetary items and non-monetary assets and liabilities that are denominated in foreigncurrencies are recognised in the Statements of Comprehensive Income in the year in which they arise. Foreign exchange gainsand losses on financial assets and liabilities at fair value through profit or loss are recognised together with other changes infair value. Net foreign exchange gains/(losses) on non-monetary and monetary financial assets and liabilities other than thoseclassified as at fair value through profit or loss are included in the Statements of Comprehensive Income.

Combined totals shown in the financial statements

The financial statements of the Company are measured in the currency of the primary economic operating environment in whichthe Company operates. The Company has adopted US$ as the presentation currency of the combined totals shown in thefinancial statements.

For the purposes of producing the combined totals in the Statements of Financial Position, the Statements of Financial Positionof each of the individual Funds are translated to US$ using the exchange rates as at 31 December 2018.

For the purpose of producing the combined totals in the Statements of Comprehensive Income and the Statements of Changesin Net Assets Attributable to Holders of Redeemable Shares from the accounts of the individual Funds, average exchange ratesare used. A translation adjustment arises in the combined totals due to this methodology. This adjustment does not have anyimpact on the NAV of any individual Fund. For the financial year ended 31 December 2018, this adjustment amounted toUS$(337,763,052) (31 December 2017: US$835,500,719).

For the purpose of producing the combined totals in the Statements of Cash Flows, the opening exchange rate is used to convertthe Statements of Financial Position balances at 31 December 2017, the average exchange rate is used to convert the Statementsof Comprehensive Income amounts for the financial year ended 31 December 2018 and the closing exchange rate is used toconvert the Statements of Financial Position balances at 31 December 2018. A translation adjustment arises in the combined totalsdue to this methodology. This adjustment does not have any impact on the cash flows of any individual Fund. For the financial yearended 31 December 2018, this adjustment amounted to US$367,934 (31 December 2017: US$(1,425,021)).





(d) Financial assets and liabilities

(i) Recognition and initial measurement

Financial assets and financial liabilities are initially recognised at fair value through profit or loss on the Company’s Statementof Financial Position on the trade date, which is the date on which the Company becomes a party to the contractual provisionsof the instrument. Other financial assets and financial liabilities are recognised at the date they are originated. From this dateany gains and losses arising from changes in fair value of the financial assets or financial liabilities are recorded in theStatement of Comprehensive Income

A financial asset or financial liability is measured initially at fair value plus, for an item not at FVTPL, transaction costs that aredirectly attributable to its acquisition or issue. Transaction costs on financial assets and financial liabilities at fair value throughprofit or loss are expensed immediately, while on other financial instruments they are amortised.

(ii) Classification and subsequent measurement

(a) Classification of financial assets – Policy applicable from 1 January 2018

On initial recognition, the Company classifies financial assets as measured at amortised cost or FVPTL.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVPTL:

- It is held within a business model whose objective is to hold assets to collect contractual cash flows; and- Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI).

All other financial assets of the Company are measured at FVTPL.

Business model assessment

In making an assessment of the objective of the business model in which a financial asset is held the Company considers allof the relevant information about how the business is managed, including:

- The documented investment strategy and the execution of this strategy in practice. This includes whether the investmentstrategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching theduration of the financial assets to the duration of any related liabilities or expected cash outflows or realising cash flowsthrough the sale of the assets;

- How the performance of the portfolio is evaluated and reported to the Company’s management;- The risks that affect the performance of the business model (and the financial assets held within that business model)

and how those risks are managed;- How the investment manager is compensated: e.g. whether compensation is based on the fair value of the assets

managed or the contractual cash flows collected; and- The frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and

expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for thispurpose, consistent with the Company’s continuing recognition of the assets.

The Company has determined that it has two business models.

- Held-to-collect business model: this includes cash and cash equivalents, receivable for fund shares sold and otherreceivables. These financial assets are held to collect contractual cash flow.

- Other business model: this includes investments in investment funds. These financial assets are managed and theirperformance is evaluated, on a fair value basis, with frequent sales taking place.

Assessment whether contractual cash flows are SPPI

For the purpose of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial recognition. ‘Interest’is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstandingduring a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), aswell as a profit margin.





(d) Financial assets and liabilities (continued)

(ii) Classification and subsequent measurement (continued)

(a) Classification of financial assets – Policy applicable from 1 January 2018 (continued)

Assessment whether contractual cash flows are SPPI (continued)

In assessing whether the contractual cash flows are SPPI, the Company considers the contractual terms of the instrument. Thisincludes assessing whether the financial asset contains a contractual term that could change the timing or amount ofcontractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:

- Contingent events that would change the amount or timing of cash flows;- Leverage features;- Prepayment and extension features;- Terms that limit the Company’s claim to cash flows from specified assets (e.g. non-recourse features; and- Features that modify consideration of the time value of money (e.g. periodical reset of interest rates).

For a reconciliation of line items in the statement of financial position to the categories of financial instruments, as defined byIFRS 9, see Note 2a.

FVTPL under IFRS 10

As explained further in Note 4, loans to subsidiaries are carried at fair value through profit or loss under IFRS 10.

Reclassifications

Financial assets are not reclassified subsequent to their initial recognition unless the Company were to change its businessmodel for managing financial assets, in which case all affected financial assets would be reclassified on the first day of the firstreporting period following the change in the business model.

(b) Classification of financial assets – Policy applicable before 1 January 2018

The Fund classified financial assets into the following categories.

Financial assets at FVTPL:

- Held for trading: derivative financial instruments- Designated as at FVTPL: loans to subsidiaries and investment funds.

Financial assets at amortised cost:

- Loans and receivables: cash and cash equivalents, receivable for fund shares sold and other receivables.

A financial asset was classified as held-for-trading if:

- It was acquired or incurred principally for the purpose of selling or repurchasing it in the near term;- On initial recognition, it was part of a portfolio that was managed together and for which there was evidence of a recent

pattern of short-term profit taking; or- It was a derivative, other than a designated and effective hedging instrument.

The Company designated all loans to subsidiaries and investments in funds as at FVTPL on initial recognition because itmanaged these securities on a fair value basis in accordance with its documented investment strategy. Internal reporting andperformance measurement of these securities were on a fair value basis.

A non-derivative financial asset with fixed or determinable payments could be classified as a loan and receivable unless it wasquoted in an active market or was an asset for which the holder may not recover substantially all of its initial investment, otherthan because of credit deterioration.

For a reconciliation of line items in the statement of financial position to the categories of financial instruments, as defined byIAS 39, see Note 2a.






(ii) Classification and subsequent measurement (continued)

(c) Subsequent measurement of financial assets

Financial assets at FVTPL

These assets are subsequently measured at fair value. Net gains and losses, including any interest income and expense andforeign exchange gains and losses, are recognised in profit or loss in ‘Income from investments and derivatives’ in thestatement of comprehensive income.

Financial assets at amortised cost (2017: loans and receivables)These assets are subsequently measured at amortised cost using the effective interest method. Interest income is recognisedin ‘Interest income calculated using the effective interest method’, foreign exchange gains and losses are recognised in ‘netgain/loss on foreign exchange’ and impairment would be recognised in ‘impairment losses on financial instruments’ in thestatement of comprehensive income. Any gain or loss on derecognition is also recognised in profit or loss.

Cash and cash equivalents, receivable for fund shares sold and other receivables are included in this category.

(d) Financial liabilities – Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL.

A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such oninitial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interestexpense, are recognised in profit or loss.

Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expenseand foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognisedin profit or loss.

Financial liabilities at FVTPL:- Held-for-trading: derivative financial instruments

Financial liabilities at amortised cost:- This includes payable for fund shares redeemed, other payables and accrued expenses, income distribution payable

and redeemable shares.

(iii) Fair value measurement principles‘Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction betweenmarket participants at the measurement date in the principal or, in its absence, the most advantageous market to which theFunds have access to at that date. The fair value of a liability reflects its non-performance risk.

The fair value of financial assets and liabilities traded in active markets (such as publicly traded derivatives and tradingsecurities) are based on quoted market prices at the close of trading on the financial year end date. A market is regarded asactive if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information onan ongoing basis.

If a quoted price is not available from a recognised market, or is unrepresentative in the opinion of the Directors or theirdelegate, such a security shall be valued, by estimating with care and in good faith the probable realisation value of theinvestment, by the Directors or their delegate or a competent person, which may be the Investment Managers (appointed bythe Directors and each approved for the purpose by the Depositary) or valued at the probable realisation value estimated withcare and in good faith by any other means, provided that the value is approved by the Depositary.

The value of any security, including debt and equity securities which is not normally quoted, listed or traded on or under therules of a recognised exchange will be determined in accordance with the above provisions or obtained from an independentpricing source (if available).






(iii) Fair value measurement principles (continued)The fair value of derivatives that are not exchange traded is estimated at the amount that the Company would receive or payto terminate the contract at the Statement of Financial Position date taking into account current market conditions (volatility,appropriate yield curve) and the current creditworthiness of the counterparties.

(iv) Amortised cost measurement principlesThe ‘amortised cost’ of a financial asset or financial liability is the amount at which the financial asset or financial liability ismeasured on initial recognition minus the principal repayments, plus or minus the cumulative amortisation using the effectiveinterest method of any difference between that initial amount and the maturity amount and, for financial assets, adjusted for anyloss allowance.

(v) ImpairmentIFRS 9 requires an impairment assessment to be carried out on its financial assets at amortised cost. The Directors considerthe probability of default to be close to zero, as these instruments have a low risk of default and the counterparties have a strongcapacity to meet their contractual obligations in the near term. As a result, no loss allowance has been recognised in thefinancial statements based on 12-month expected credit losses as any such impairment would be wholly insignificant to theCompany.

(vi) DerecognitionThe Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or ittransfers the financial asset and the transfer qualifies for derecognition in accordance with IFRS 9.

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expired.

The Company uses the average cost method to determine realised gains and losses on derecognition.

(vii) Forward foreign exchange contractsForward foreign exchange contracts are recognised at fair value on the date on which a derivative contract is entered into andare subsequently re-measured at their fair value. All forward foreign exchange contracts are carried as assets when their fairvalue is positive and as liabilities when their fair value is negative. Any changes in fair value are recognised in the Statementsof Comprehensive Income.

The fair value of forward foreign exchange contracts that are not exchange traded is estimated at the amount that the Companywould receive or pay to terminate the contract at the financial year end date, taking into account current market conditions(volatility, appropriate yield curve) and the current creditworthiness of the counterparties. Specifically, the fair value of a forwardforeign exchange contract is determined as a net present value of estimated future cash flows, discounted at appropriatemarket rates on the valuation date. The unrealised gain or loss on open forward foreign exchange contracts is calculated asthe difference between the contract price and the forward price.

The best evidence of fair value of a derivative at initial recognition is the transaction price. Subsequent changes in the fair valueof any derivative instrument are recognised immediately in the Statements of Comprehensive Income.

(viii) Investment fundsCollective Investment Schemes which are traded in active markets are valued using quoted market prices at the Statement ofFinancial Position date. Investment funds which are not publicly traded are normally valued at the underlying unaudited NAVas advised by the managers or administrators of these Investment Funds, unless the Company is aware of good reasons whysuch a valuation would not be the most appropriate indicator of fair value.

(ix) Cash and cash equivalentsCash comprises current deposits with banks. Cash equivalents are short-term highly liquid investments that are readilyconvertible to known amounts of cash, are subject to an insignificant risk of changes in value, and are held for the purpose ofmeeting short-term cash commitments rather than for investment or other purposes. Cash and cash equivalents are measuredat amortised cost.





(e) Use of estimates

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates andassumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expense. Theestimates and associated assumptions are based on historical experience and various other factors that are believed to bereasonable under the circumstances, the results of which form the basis of making the judgements about carrying values ofassets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates arerecognised in the year in which the estimate is revised, if the revision affects only that period or in the period of the revision andfuture periods if the revision affects both current and future periods.

Information on estimates and judgements used by the Directors are disclosed in Note 9 of the financial statements.

(f) Coupon income

Coupon income on financial assets at fair value through profit or loss is included in realised gain on investments and otherderivative contracts in the Statement of Comprehensive Income. Income not yet received is included in other receivables in theStatement of Financial Position. Income which suffers a deduction of tax at source is shown gross of withholding tax. Non-recoverable withholding tax is disclosed separately in the Statement of Comprehensive Income.

(g) Interest income and expense

Interest income and expense is recognised in the Statements of Comprehensive Income as it accrues, using the originalEffective Interest Rate of the instrument calculated at the acquisition or origination date. Interest income includes theamortisation of any discount or premium, transaction costs or other differences between the initial carrying amount of aninterest-bearing instrument and its amount at maturity calculated on an effective interest rate basis.

(h) Expenses

All expenses, including management fees, administration fees and depositary fees, are recognised in the Statements ofComprehensive Income on an accruals basis.

(i) Taxation

Corporation tax is provided on taxable profits at current rates applicable to the Company’s activities.

(j) Redeemable shares

All redeemable shares issued by the Company provide the investors with the right to require redemption for cash at the valueproportionate to the investor’s share in the relevant Fund’s net assets at the redemption date. In accordance with IAS 32, suchinstruments give rise to a financial liability for the present value of the redemption amount on the reporting date.

(k) Dividend policy

The Company may declare dividends out of the net investment income and, at the discretion of the Directors, net realised andunrealised capital gains of the Funds attributable to the distribution classes on or about the last day of each calendar quarter,as detailed, where applicable, in the relevant Supplement to the Prospectus. The dividend distribution on the redeemableshares is recognised as a finance cost in the Statements of Comprehensive Income. Details of distributions paid during the yearare disclosed in Note 13.

(l) Receivable for investments sold and payable for investments purchased

Receivable for investments sold and payable for investments purchased represent amounts receivable and payablerespectively, for transactions contracted for but not yet delivered at the end of the financial year. These amounts are recognisedinitially at fair value and subsequently at amortised cost.

(m) Revolving Credit Facility

Some of the subsidiaries have entered into a multi-currency revolving credit facility with State Street Bank and Trust Company,RBC Bank, ScotiaBank and National Australia Bank Limited. Under this agreement credit facilities may from time to time bemade available by State Street Bank and Trust Company, RBC Bank, ScotiaBank and National Australia Bank Limited to theSubsidiaries. This is a limited recourse agreement, with recourse being limited to the assets of the Funds Subsidiaries. Thereare also security deeds in place between the Subsidiaries and State Street Bank and Trust Company, RBC Bank, ScotiaBankand National Australia Bank Limited whereby the appropriate Funds act as Guarantor for any credit facilities extended.

As at 31 December 2018, there were no amounts outstanding on these credit facilities (31 December 2017: nil). Lines were notdrawn through 2018 and 2017.





(n) Cross holdings within the Company

For the purposes of producing the combined Company total financial statements, investments by Funds in the units of otherFunds within the Company, also known as “Cross Investments” must be eliminated in order to prevent double counting.

In preparing the Combined Company total Statement of Financial Position, the value of financial assets at fair value throughprofit or loss of the Company is reduced by the value of all Cross Investments as at 31 December 2018. In preparing thecombined Company total Statement of Comprehensive Income, the net gain/(loss) on financial assets at fair value through profitor loss, is reduced by the amount of realised and unrealised gains and losses earned during the year on such crossinvestments.

The total amount of adjustments made to the combined Company Statement of Financial Position and the combined CompanyStatement of Comprehensive Income are disclosed in Note 8.

3. Cash and cash equivalents

The cash and cash equivalents are held with the Depositary, State Street Custodial Services (Ireland) Limited. State StreetCorporation, the Ultimate Parent of the Depositary, had a Standard & Poor’s credit rating of A as at 31 December 2018 (31December 2017: A). As at 31 December 2018, the Company had US$89,248 in cash and cash equivalents (31 December 2017:US$215,799).

4. Subsidiaries

As detailed in Note 2, the Company has determined that the Subsidiaries continue to meet the definition of a subsidiary underthe provisions of IFRS 10. Subsidiaries are entities under the Company’s control. The Company controls an entity when it isexposed to, or has rights to variable returns from its involvement with the entity and has the ability to affect those returns throughpower over the entity.

Place of

incorporation Proportion of Proportion of Method used to

Name of Subsidiary and operation ownership voting power account for investment

Barings Global Loan Limited Ireland 100% 100% Fair value through profit or lossBarings European Loan Limited Ireland 100% 100% Fair value through profit or lossBarings Mezzanine Loan 1 Limited Ireland 100% 100% Fair value through profit or lossBarings Global Special Situations Credit 1 Limited Ireland 100% 100% Fair value through profit or lossBarings Global Multi-Credit Strategy 1 Limited Ireland 100% 100% Fair value through profit or lossBarings Global Multi-Credit Strategy 2 Limited Ireland 100% 100% Fair value through profit or lossBarings European Loan Strategy 1 Limited Ireland 100% 100% Fair value through profit or lossBarings Global Loan and High Yield Bond Limited Ireland 100% 100% Fair value through profit or lossBarings U.S. Loan Limited Ireland 100% 100% Fair value through profit or loss

The Company, on behalf of its Funds has loan agreements in place with the Subsidiaries whereby the Company agrees to makeloans to the Subsidiaries from time to time in such currencies as may be agreed between the Company, on behalf of its Funds,and the Subsidiaries during the year from the date of the loan agreement until such date as may be agreed. Each loan isrepayable on demand. The loans from the Company are secured by the assignment of a fixed first charge of each Subsidiary’srights, title and interest on investments.

All of the income earned by the Company from the Subsidiaries represents all of the net income of the Subsidiaries for thefinancial year, except for an immaterial amount per financial year, which is recorded in the Subsidiary as profit before tax.




5. Other payables and accrued expenses

The Funds detailed below, had the following amounts payable as at 31 December 2018:

Management fee payablePerformance fees payableAdministration fee payableDepositary fee payableDirectors’ fee payableAudit and tax reporting fee payableProfessional fee payableTransaction fee payableMiscellaneous payable


Barings

Global

Loan Fund

31 Dec 2018

US$

(3,372,390)-

(332,147)(124,820)

(386)(3,355)

--

(4,043)––––––––––––––

(3,837,141)––––––––––––––––––––––––––––

Barings

European

Loan Fund

31 Dec 2018

€

(2,684,398)-

(223,131)(57,760)

(337)(3,215)

--

(3,385)––––––––––––––

(2,972,226)––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

31 Dec 2018

€

(2,778)-

(6,250)(163)(337)(134)

--

(914)––––––––––––––

(10,576)––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

31 Dec 2018

€

(149,138)-

(2,917)-

(513)(31)

--

(29)––––––––––––––

(152,628)––––––––––––––––––––––––––––

Barings

Global Special

Situations

Credit Fund 1

31 Dec 2018

US$

(3,849)(7,811)(8,750)

(59)(386)(552)

--

(1,164)––––––––––––––

(22,571)––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 1

31 Dec 2018

GBP£

(83,225)-

(6,505)-

(452)---

(1,492)––––––––––––––

(91,674)––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

31 Dec 2018

US$

(135,120)-

(9,897)(1,973)

-(215)

--

(7,682)––––––––––––––

(154,887)––––––––––––––––––––––––––––

European

Loan

Strategy

Fund 1

31 Dec 2018

€

(116,387)-

(9,097)(1,814)

(337)(280)

--

(7,207)––––––––––––––

(135,122)––––––––––––––––––––––––––––




5. Other payables and accrued expenses (continued)



The Funds detailed below, had the following amounts payable as at 31 December 2017:


Barings

Global Loan

and High Yield

Bond Fund

31 Dec 2018

US$

(170,886)-

(8,236)(1,378)

(418)(153)(350)(12)

(32,112)––––––––––––––

(213,545)––––––––––––––––––––––––––––

Barings

U.S. Loan

Fund*

31 Dec 2018

US$

(1,346,337)--

(54,210)(1,192)(1,710)

(42,516)-

(179,239)––––––––––––––

(1,625,204)––––––––––––––––––––––––––––

Barings

Global

Investment

Funds Plc

31 Dec 2018

US$

(8,517,677)(7,811)

(643,896)(250,883)

(4,704)(10,178)(42,866)

(12)(239,357)

––––––––––––––(9,717,384)

––––––––––––––––––––––––––––

Barings

Global

Loan Fund

31 Dec 2017

US$

(3,920,230)-

(402,397)(140,105)

(293)(3,378)

--

(7,622)––––––––––––––

(4,474,025)––––––––––––––––––––––––––––

Barings

European

Loan Fund

31 Dec 2017

€

(3,037,339)-

(254,284)(61,502)

(250)(3,204)

--

(5,500)––––––––––––––

(3,362,079)––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

31 Dec 2017

€

(25,423)-

(6,250)(323)(250)(845)

--

(1,287)––––––––––––––

(34,378)––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

31 Dec 2017

€

(154,288)(35,907)(2,917)

-(250)

(1,474)--

(1,740)––––––––––––––

(196,576)––––––––––––––––––––––––––––

Barings

Global Special

Situations

Credit Fund 1

31 Dec 2017

US$

(4,914)-

(9,000)(75)

(293)(1,437)

--

(1,960)––––––––––––––

(17,679)––––––––––––––––––––––––––––


5. Other payables and accrued expenses (continued)


6. Subscriber and redeemable shares

Authorised

The authorised share capital of the Company is 500,000,000,000 shares of no par value.

Subscriber shares

Subscriber shares issued amount to US$2, being 2 subscriber shares of US$1 each. These subscriber shares were issued forthe purposes of the incorporation of the Company, with one subscriber share each being legally and beneficially owned byBarings (U.K.) Limited and Barings LLC. The subscriber shares entitle the holders to attend and vote at all meetings of theCompany but do not entitle the holders to participate in the dividends or net assets of any Funds. The subscriber shares do notform part of the NAV of the Company and are thus disclosed in the financial statements by way of this note only.

Redeemable shares

The issued redeemable share capital is at all times equal to the net assets attributable to holders of redeemable shares.Redeemable shares are redeemable at the shareholders’ option and are classified as financial liabilities.

Shareholders may request that Shares be redeemed on any dealing day which is defined for each Fund in the supplements tothe prospectus.

The Funds’ capital is represented by the redeemable shares outstanding. The Funds do not have any externally imposedcapital requirements.

• Redeemable shares may be redeemed on the relevant dealing days for each of the Funds or such other date or datesas the Directors shall from time to time determine at the applicable NAV per share prevailing on the dealing day on whichthe redemption is effective.

• Redeemable shares entitles the holder to attend or vote at any general meeting of the Company. The holders are entitledto receive all dividends declared in the relevant share class and paid by the Funds. Upon winding up, the holders areentitled to a return of capital based on the NAV per share of the Funds.

• On incorporation of Barings Global Special Situations Credit Fund 1, the re-investment period was 3 years from 30September 2012 i.e. 30 September 2015. Following the end of the re-investment period, the Fund has undertaken tomandatorily redeem all outstanding Shares on a pro rata basis as and when sufficient cash or liquid assets becomeavailable. The Fund has begun to return capital to investors as it realises assets. The Fund will continue to be a goingconcern in the foreseeable future.

• On incorporation of Mezzanine Loan Fund 1, the re-investment period was 3 years from 30 March 2012 to 15 March2015. This was then extended to 15 March 2018. Following the end of the extended re-investment period, the Fund hasundertaken to mandatorily redeem all outstanding Shares on a pro rata basis as and when sufficient cash or liquid assetsbecome available. The Fund has begun to return capital to investors as it realises assets. The Fund will continue to bea going concern in the foreseeable future.

Global

Multi-Credit

Strategy

Fund 1

31 Dec 2017

GBP£

(83,715)-

(8,728)(1,303)

(219)(1,662)

--

(1,705)––––––––––––––

(97,332)––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

31 Dec 2017

US$

(140,215)-

(11,641)(2,051)

-(1,845)

-(310)

(7,039)––––––––––––––

(163,101)––––––––––––––––––––––––––––

European

Loan

Strategy

Fund 1

31 Dec 2017

€

(119,644)-

(10,557)(3,371)

(250)(153)

(1,805)-

(10,711)––––––––––––––

(146,491)––––––––––––––––––––––––––––

Barings

Global Loan

and High Yield

Bond Fund

31 Dec 2017

US$

(252,112)-

(10,859)(1,910)

(280)(270)

(3,881)(905)

(36,037)––––––––––––––

(306,254)––––––––––––––––––––––––––––

Barings

Global

Investment

Funds Plc

31 Dec 2017

US$

(8,434,028)(43,083)

(774,449)(224,126)

(2,362)(15,984)(6,047)(1,215)

(78,043)––––––––––––––

(9,579,337)––––––––––––––––––––––––––––




6. Subscriber and redeemable shares (continued)

Redeemable shares (continued)

• The Directors may determine to apply an anti-dilution levy to net subscriptions on any dealing day. There was no anti-dilution levy applied to subscriptions during the financial year ended 31 December 2018 (31 December 2017: nil).

The movement in the number of redeemable shares for the financial year ended 31 December 2018 is as follows:

Barings Global Loan Fund Balance at Balance at

1 Jan 2018 Issued Redeemed 31 Dec 2018

Class A EUR Distribution Shares 2,875,905.35 53,995.12 - 2,929,900.47Class A GBP Accumulation Shares 2,107,639.13 44,524.62 (329,154.14) 1,823,009.61Class A GBP Distribution Shares 1,841,881.38 - - 1,841,881.38Class A USD Accumulation Shares 637,118.46 - (50,962.44) 586,156.02Class A USD Distribution Shares 3,952,477.36 - - 3,952,477.36Class B CAD Accumulation Shares 4,300.00 - - 4,300.00Class B CHF Accumulation Shares 4,539,819.92 1,345,486.92 (84,474.72) 5,800,832.12Class B CHF Distribution Shares 20,000.00 330.00 (0.01) 20,329.99Class B EUR Accumulation Shares 3,885,555.78 285,903.18 (205,523.50) 3,965,935.47Class B EUR Distribution Shares 1,102,317.36 3,411.31 (1,017,408.35) 88,320.32Class B GBP Accumulation Shares 3,436,870.00 328,137.21 (62,008.65) 3,702,998.56Class B GBP Distribution Shares 2,044,531.98 1,446,596.00 - 3,491,127.98Class B SEK Accumulation Shares 1,029,486.57 - - 1,029,486.57Class B USD Accumulation Shares 12,983,482.46 528,381.06 (4,023,399.36) 9,488,464.16Class B USD Distribution Shares 6,989,825.47 66,945.72 (872,931.98) 6,183,839.21Class C AUD Distribution Shares 22,493,781.64 1,323,501.69 (5,847,287.41) 17,969,995.92Class C CHF Accumulation Shares 565,340.70 73,770.08 (169,161.80) 469,948.98Class C CHF Distribution Shares 100,000.00 - - 100,000.00Class C EUR Accumulation Shares 766,938.24 173,079.05 (40,299.58) 899,717.71Class C EUR Distribution Shares 236,911.62 3,879.72 - 240,791.34Class C GBP Accumulation Shares 3,529,106.97 5,545.08 (1,413,146.70) 2,121,505.35Class C GBP Distribution Shares 1,058,576.85 71,185.67 (340,182.57) 789,579.95Class C NOK Accumulation Shares** - 1,821,837.25 (1,821,837.25) -Class C SEK Accumulation Shares 93,092.53 3,369,023.98 - 3,462,116.51Class C USD Accumulation Shares 1,080,876.28 250,556.61 (108,654.25) 1,222,778.64Class C USD Distribution Shares 363,582.29 - - 363,582.29Class D CHF Accumulation Shares 68,753.70 36,491.00 (24,011.62) 81,233.08Class D DKK Accumulation Shares 50,745.32 - (10,446.28) 40,299.04Class D EUR Accumulation Shares 96,996.52 74,877.19 (38,598.81) 133,274.90Class D EUR Distribution Shares 117,350.15 600.00 - 117,950.15Class D GBP Distribution Shares 111,678.60 - (50,961.09) 60,717.51Class D NOK Accumulation Shares 1,487,687.64 58,770.63 (723,613.23) 822,845.04Class D SEK Accumulation Shares 4,541,801.69 2,095,292.29 (1,056,024.71) 5,581,069.27Class D SEK Distribution Shares 456,255.53 3,506.78 (196,037.43) 263,724.88Class D USD Accumulation Shares 501,161.36 120,276.97 (303,511.81) 317,926.52Class D USD Distribution Shares 393,882.08 105,136.32 (133,324.46) 365,693.94Class E AUD Accumulation Shares 1,147.36 5,918.92 - 7,066.28Class E CAD Distribution Shares 8,124.69 3,025.41 - 11,150.10Class E CHF Accumulation Shares 26,259.07 10,865.44 (990.00) 36,134.51Class E EUR Accumulation Shares 5,489.98 66,364.27 (2,731.39) 69,122.86Class E GBP Accumulation Shares 1,897.42 11,721.91 - 13,619.33Class E GBP Distribution shares* - 2,347.78 - 2,347.78Class E SGD Accumulation Shares 18,146.52 20,844.22 - 38,990.74Class E SGD Distribution Shares 1,500.00 - - 1,500.00Class E USD Accumulation Shares 179,945.10 92,807.35 (91,198.75) 181,553.70Class E USD Distribution Shares 68,871.67 77,592.01 (42,789.42) 103,674.26Class F EUR Accumulation Shares 70,912.27 - (31,157.96) 39,754.31Class F GBP Accumulation Shares 3,671.56 - - 3,671.56Class F USD Accumulation Shares 15,234.98 - - 15,234.98

**These share classes launched during the financial year ended 31 December 2018.**This share class launched and terminated during the financial year ended 31 December 2018.







(continued) 1 Jan 2018 Issued Redeemed 31 Dec 2018

Class G USD Accumulation shares* - 95,608.49 - 95,608.49Class G USD Distribution shares* - 122,070.41 (21,769.37) 100,301.04Class N USD Distribution Shares** 982,080.85 - (982,080.85) -Class S USD Accumulation Shares 10.88 - - 10.88

Barings European Loan Fund Balance at Balance at


Class A AUD Accumulation Shares 10,000.00 1,417.86 - 11,417.86Class A CHF Accumulation Shares 594,079.22 236,011.81 (43,701.94) 786,389.09Class A CHF Distribution Shares 18,436.21 11,668.00 (3,840.00) 26,264.21Class A DKK Distribution Shares 32,138.14 337.08 (12,316.95) 20,158.27Class A EUR Accumulation Shares 5,113,397.88 1,259,025.51 (3,117,663.86) 3,254,759.53Class A EUR Distribution Shares 4,165,582.12 542,667.80 (1,586,425.49) 3,121,824.43Class A GBP Accumulation Shares 848,636.09 152,748.10 (346,937.93) 654,446.26Class A GBP Distribution Shares 91,822.91 587.92 (4,830.10) 87,580.73Class A JPY Accumulation Shares 24,876,229.19 2,880,061.85 (15,399,765.59) 12,356,525.45Class A JPY Distribution Shares* - 19,860,000.00 - 19,860,000.00Class A SEK Accumulation Shares* - 2,994,134.61 - 2,994,134.61Class A SGD Accumulation Shares 1,364.09 - - 1,364.09Class A USD Accumulation Shares 2,742,608.57 373,877.32 (1,137,286.83) 1,979,199.06Class A USD Distribution Shares 930,548.22 274,241.09 (319,743.40) 885,045.91Class B CHF Accumulation Shares* - 419,937.02 - 419,937.02Class B EUR Accumulation Shares 17,619,344.63 2,280,496.81 (4,206,129.33) 15,693,712.11Class B EUR Distribution Shares 1,824,141.03 1,559,999.79 (113,637.10) 3,270,503.72Class B GBP Accumulation Shares 162,638.22 26,934.85 (1,362.17) 188,210.90Class B GBP Distribution Shares 51,199.39 750.84 (2,222.86) 49,727.37Class B NOK Accumulation Shares 6,766,971.11 1,414,957.44 (800,508.95) 7,381,419.60Class B NOK Distribution Shares 1,033,219.60 - (9,829.95) 1,023,389.65Class B USD Accumulation Shares 3,215,110.20 542,412.09 (1,362,348.33) 2,395,173.96Class B USD Distribution Shares 1,222,565.27 5,645.11 (147,229.12) 1,080,981.26Class C AUD Distribution Shares 26,079.23 - (13,380.68) 12,698.55Class C CAD Accumulation Shares 23,102.09 (0.01) - 23,102.08Class C CAD Distribution Shares 111,829.37 - (8,700.86) 103,128.51Class C CHF Accumulation Shares 82,817.87 3,575.00 (15,532.38) 70,860.49Class C CHF Distribution Shares 14,986.90 10,997.99 (3,000.07) 22,984.82Class C EUR Accumulation Shares 2,370,891.02 335,106.34 (1,499,259.22) 1,206,738.14Class C EUR Distribution Shares 208,749.61 118,623.90 (83,717.45) 243,656.06Class C GBP Accumulation Shares 21,900.45 4,241.72 (17,066.99) 9,075.18Class C NOK Accumulation Shares 137,988.70 - - 137,988.70Class C SEK Accumulation Shares 56,000.00 10,632.31 - 66,632.31Class C SGD Accumulation Shares 6,750.40 841.36 (937.00) 6,654.76Class C SGD Distribution Shares 27,964.82 4,987.53 (3,981.65) 28,970.70Class C USD Accumulation Shares 1,075,667.65 333,413.14 (216,065.26) 1,193,015.53Class C USD Distribution Shares 823,757.88 357,289.83 (165,045.34) 1,016,002.37Class E AUD Accumulation Shares 29,205.81 4,607.74 - 33,813.55Class E AUD Distribution Shares 130,941.31 69,079.92 (12,835.67) 187,185.56Class E CAD Accumulation Shares 50,494.91 - (7,618.63) 42,876.28Class E CAD Distribution Shares 33,281.79 20,036.43 (3,154.89) 50,163.33Class E CHF Accumulation Shares 2,115.25 - (1.01) 2,114.24Class E CHF Distribution Shares 12,077.31 998.50 (3,070.22) 10,005.59Class E EUR Accumulation Shares 483,638.00 67,826.56 (70,575.60) 480,888.96Class E EUR Distribution Shares 322,683.30 38,712.16 (104,618.89) 256,776.57Class E GBP Accumulation Shares 35,194.11 3,531.93 (6,417.03) 32,309.01

**These share classes launched during the financial year ended 31 December 2018.**This share class terminated during the financial year ended 31 December 2018.







(continued) 1 Jan 2018 Issued Redeemed 31 Dec 2018

Class E GBP Distribution Shares 14,411.14 9,789.79 (3,638.29) 20,562.64Class E SGD Accumulation Shares 55,349.92 815.33 (11,959.31) 44,205.94Class E SGD Distribution Shares 91,853.59 14,658.49 (16,727.27) 89,784.81Class E USD Accumulation Shares 1,167,676.97 127,083.93 (441,120.95) 853,639.95Class E USD Distribution Shares 1,318,585.03 176,760.72 (341,437.49) 1,153,908.26

Mezzanine Loan Fund 1 Balance at Balance at


Class A EUR Distribution Shares 587,576.01 - (396,942.08) 190,633.93

Barings Global High Yield Strategies Fund Balance at Balance at


Class S EUR Accumulation Shares 378,343.23 - (101,515.97) 276,827.26

Barings Global Special Situations Credit Fund 1 Balance at Balance at


Class M USD Distribution Shares 1,247.05 - (377.60) 869.45Class N USD Distribution Shares 15,450.57 - (4,678.55) 10,772.02Class S USD Distribution Shares 78,087.63 - (23,645.13) 54,442.50

Global Multi-Credit Strategy Fund 1 Balance at Balance at


Class Q GBP Distribution Shares 2,031,651.42 125,553.29 - 2,157,204.71



Class A USD Distribution Shares 3,026,617.39 - - 3,026,617.39

European Loan Strategy Fund 1 Balance at Balance at


Class U EUR Distribution Shares 1,655,202.12 1,437,880.76 - 3,093,082.88Class U GBP Distribution Shares** 1,000,200.08 - (1,000,200.08) -

Barings Global Loan and High Yield Bond Fund Balance at Balance at


Class E AUD Distribution Shares 3,856,726.68 229,061.88 (1,120,277.01) 2,965,511.55Class F USD Accumulation Shares 500.00 - - 500.00

Barings U.S. Loan Fund*** Balance at Balance at


Class A CHF Accumulating Shares* - 39,275.00 - 39,275.00Class A CHF Distributing Shares* - 7,400.00 - 7,400.00Class A EUR Accumulating Shares* - 141,141.00 (4,400.00) 136,741.00Class A GBP Accumulating Shares* - 11,370.00 - 11,370.00Class A JPY Accumulating Shares* - 188,388,883.54 (24,509.80) 188,364,373.74Class A JPY Distributing Shares* - 4,994,872.10 - 4,994,872.10Class A USD Accumulating Shares* - 3,945,963.55 (526,906.53) 3,419,057.02Class A USD Distributing Shares* - 4,657,448.65 (11,065.99) 4,646,382.66Class B JPY Distributing Shares* - 340,208,653.80 - 340,208,653.80Class F USD Accumulating Shares* - 7,556.28 - 7,556.28Class F USD Distributing Shares* - 1,239.59 - 1,239.59

***These share classes launched during the financial year ended 31 December 2018.***This share class terminated during the financial year ended 31 December 2018.***This Fund launched on 31 August 2018.






The movement in the number of redeemable shares for the financial year ended 31 December 2017 is as follows:



Class A EUR Distribution Shares 2,785,517.02 161,699.88 (71,311.55) 2,875,905.35Class A GBP Accumulation Shares 2,681,414.23 172,100.48 (745,875.58) 2,107,639.13Class A GBP Distribution Shares 1,841,881.38 - - 1,841,881.38Class A USD Accumulation Shares 640,070.70 - (2,952.24) 637,118.46Class A USD Distribution Shares 3,952,477.36 - - 3,952,477.36Class B CAD Accumulation Shares 4,300.00 - - 4,300.00Class B CHF Accumulation Shares 3,416,405.80 1,223,941.94 (100,527.82) 4,539,819.92Class B CHF Distribution Shares 20,000.00 - - 20,000.00Class B EUR Accumulation Shares 3,760,986.43 439,591.32 (315,021.97) 3,885,555.78Class B EUR Distribution Shares 1,526,204.02 92,485.88 (516,372.54) 1,102,317.36Class B GBP Accumulation Shares 3,794,819.44 40,692.88 (398,642.32) 3,436,870.00Class B GBP Distribution Shares 1,270,018.81 781,576.16 (7,062.99) 2,044,531.98Class B SEK Accumulation Shares* - 1,029,486.57 - 1,029,486.57Class B USD Accumulation Shares 10,127,684.73 3,317,602.09 (461,804.36) 12,983,482.46Class B USD Distribution Shares 5,697,398.09 2,817,612.06 (1,525,184.68) 6,989,825.47Class C AUD Distribution Shares 23,701,540.07 1,864,886.67 (3,072,645.10) 22,493,781.64Class C CHF Accumulation Shares 281,117.61 284,223.09 - 565,340.70Class C CHF Distribution Shares* - 100,000.00 - 100,000.00Class C EUR Accumulation Shares 571,487.79 365,108.57 (169,658.12) 766,938.24Class C EUR Distribution Shares 227,154.92 9,756.70 - 236,911.62Class C GBP Accumulation Shares 1,715,597.69 1,813,509.28 - 3,529,106.97Class C GBP Distribution Shares 921,337.38 350,125.66 (212,886.19) 1,058,576.85Class C SEK Accumulation Shares 989,797.63 - (896,705.10) 93,092.53Class C USD Accumulation Shares 1,412,075.96 579,202.58 (910,402.26) 1,080,876.28Class C USD Distribution Shares 246,534.64 117,047.65 - 363,582.29Class D CHF Accumulation Shares 42,546.21 26,207.49 - 68,753.70Class D CHF Distribution Shares** 2,979.35 - (2,979.35) -Class D DKK Accumulation Shares 91,662.27 - (40,916.95) 50,745.32Class D EUR Accumulation Shares 31,396.37 78,195.59 (12,595.44) 96,996.52Class D EUR Distribution Shares 108,987.91 10,352.68 (1,990.44) 117,350.15Class D GBP Distribution Shares 40,859.06 70,819.54 - 111,678.60Class D NOK Accumulation Shares 1,301,764.84 312,100.23 (126,177.43) 1,487,687.64Class D SEK Accumulation Shares 3,654,916.61 1,494,927.32 (608,042.24) 4,541,801.69Class D SEK Distribution Shares 323,876.38 132,379.15 - 456,255.53Class D USD Accumulation Shares 360,371.13 281,325.17 (140,534.94) 501,161.36Class D USD Distribution Shares 34,415.74 413,691.37 (54,225.03) 393,882.08Class E AUD Accumulation Shares 1,147.36 - - 1,147.36Class E CAD Distribution Shares 8,124.69 - - 8,124.69Class E CHF Accumulation Shares* - 67,009.07 (40,750.00) 26,259.07Class E EUR Accumulation Shares 1,793.80 118,783.49 (115,087.31) 5,489.98Class E EUR Distribution Shares** 3,984.62 12,050.00 (16,034.62) -Class E GBP Accumulation Shares* - 1,897.42 - 1,897.42Class E SGD Accumulation Shares 4,982.70 14,501.91 (1,338.09) 18,146.52Class E SGD Distribution Shares* - 1,500.00 - 1,500.00Class E USD Accumulation Shares 980.86 522,204.56 (343,240.32) 179,945.10Class E USD Distribution Shares 3,000.00 135,847.38 (69,975.71) 68,871.67Class F EUR Accumulation Shares 78,480.72 8,531.63 (16,100.08) 70,912.27Class F GBP Accumulation Shares 3,671.56 - - 3,671.56Class F USD Accumulation Shares 15,234.98 - - 15,234.98Class N USD Distribution Shares 982,080.85 - - 982,080.85Class S USD Accumulation Shares 10.88 - - 10.88

**These share classes launched during the financial year ended 31 December 2017.**These share classes terminated during the financial year ended 31 December 2017.








Class A AUD Accumulation Shares 10,000.00 - - 10,000.00Class A CHF Accumulation Shares 625,513.37 77,591.07 (109,025.22) 594,079.22Class A CHF Distribution Shares 12,221.03 6,795.18 (580.00) 18,436.21Class A DKK Distribution Shares 51,774.16 603.18 (20,239.20) 32,138.14Class A EUR Accumulation Shares 3,969,818.28 1,621,558.41 (477,978.81) 5,113,397.88Class A EUR Distribution Shares 3,078,475.17 1,246,613.66 (159,506.71) 4,165,582.12Class A GBP Accumulation Shares 2,115,615.00 78,176.36 (1,345,155.27) 848,636.09Class A GBP Distribution Shares 56,380.64 36,821.34 (1,379.07) 91,822.91Class A JPY Accumulation Shares* - 75,283,848.38 (50,407,619.19) 24,876,229.19Class A SGD Accumulation Shares 1,364.09 - - 1,364.09Class A USD Accumulation Shares 2,532,138.75 1,958,930.22 (1,748,460.41) 2,742,608.56Class A USD Distribution Shares 734,860.76 313,437.16 (117,749.70) 930,548.22Class B EUR Accumulation Shares 11,787,149.01 6,095,338.79 (263,143.17) 17,619,344.63Class B EUR Distribution Shares 590,284.89 1,233,856.14 - 1,824,141.03Class B GBP Accumulation Shares 50,062.13 112,958.76 (382.67) 162,638.22Class B GBP Distribution Shares 25,749.96 37,838.53 (12,389.10) 51,199.39Class B NOK Accumulation Shares 6,207,975.94 1,203,412.18 (644,417.01) 6,766,971.11Class B NOK Distribution Shares 1,043,047.60 - (9,828.00) 1,033,219.60Class B USD Accumulation Shares 1,591,442.19 1,823,185.41 (199,517.40) 3,215,110.20Class B USD Distribution Shares 1,558,711.47 70,870.97 (407,017.17) 1,222,565.27Class C AUD Distribution Shares 22,290.64 5,803.50 (2,014.91) 26,079.23Class C CAD Accumulation Shares 26,502.09 - (3,400.00) 23,102.09Class C CAD Distribution Shares 109,831.97 1,997.40 - 111,829.37Class C CHF Accumulation Shares 50,567.58 35,842.34 (3,592.05) 82,817.87Class C CHF Distribution Shares 8,032.78 6,954.12 - 14,986.90Class C EUR Accumulation Shares 1,801,696.27 808,636.15 (239,441.40) 2,370,891.02Class C EUR Distribution Shares 101,582.52 114,344.66 (7,177.57) 208,749.61Class C GBP Accumulation Shares 25,959.81 3,172.77 (7,232.13) 21,900.45Class C NOK Accumulation Shares 82,000.00 55,988.70 - 137,988.70Class C SEK Accumulation Shares 40,000.00 16,000.00 - 56,000.00Class C SGD Accumulation Shares 4,433.38 2,317.02 - 6,750.40Class C SGD Distribution Shares 24,554.21 8,380.79 (4,970.18) 27,964.82Class C USD Accumulation Shares 460,004.06 814,750.75 (199,087.16) 1,075,667.65Class C USD Distribution Shares 620,521.34 328,001.60 (124,765.06) 823,757.88Class E AUD Accumulation Shares 22,041.62 7,164.19 - 29,205.81Class E AUD Distribution Shares 58,511.79 73,835.66 (1,406.14) 130,941.31Class E CAD Accumulation Shares 49,932.06 6,671.87 (6,109.02) 50,494.91Class E CAD Distribution Shares 43,607.72 2,807.73 (13,133.66) 33,281.79Class E CHF Accumulation Shares 93.90 2,141.74 (120.39) 2,115.25Class E CHF Distribution Shares 1,994.08 10,083.23 - 12,077.31Class E EUR Accumulation Shares 400,796.49 163,952.17 (81,110.66) 483,638.00Class E EUR Distribution Shares 209,375.45 153,381.86 (40,074.01) 322,683.30Class E GBP Accumulation Shares 32,623.90 12,558.34 (9,988.13) 35,194.11Class E GBP Distribution Shares 16,023.95 7,359.53 (8,972.34) 14,411.14Class E SGD Accumulation Shares 59,191.84 2,575.00 (6,416.92) 55,349.92Class E SGD Distribution Shares 90,938.69 23,716.29 (22,801.39) 91,853.59Class E USD Accumulation Shares 1,206,158.35 275,340.54 (313,821.92) 1,167,676.97Class E USD Distribution Shares 935,452.38 651,110.94 (267,978.29) 1,318,585.03

*These share classes launched during the financial year ended 31 December 2017.






Mezzanine Loan Fund 1 Balance at Balance at


Class A EUR Distribution Shares 457,600.38 129,975.63 - 587,576.01

Barings Global High Yield Strategies Fund Balance at Balance at


Class S EUR Accumulation Shares 515,198.30 - (136,855.07) 378,343.23

Barings Global Special Situations Credit Fund 1 Balance at Balance at


Class M USD Distribution Shares 3,422.05 - (2,175.00) 1,247.05Class N USD Distribution Shares 42,403.25 - (26,952.68) 15,450.57Class S USD Distribution Shares 214,314.52 - (136,226.89) 78,087.63



Class Q GBP Distribution Shares 1,335,945.89 695,705.53 - 2,031,651.42



Class A USD Distribution Shares 3,026,617.39 - - 3,026,617.39

European Loan Strategy Fund 1 Balance at Balance at


Class U EUR Accumulation Shares** 1,287,519.14 25,775.90 (1,313,295.04) -Class U EUR Distribution Shares* - 1,655,202.12 - 1,655,202.12Class U GBP Distribution Shares 1,000,200.08 - - 1,000,200.08

Barings Global Loan and High Yield Bond Fund*** Balance at Balance at


Class E AUD Distribution Shares* - 3,856,726.68 - 3,856,726.68Class F USD Accumulation Shares* - 500.00 - 500.00

***These share classes launched during the financial year ended 31 December 2017.***These share classes terminated during the financial year ended 31 December 2017.***This Fund launched on 2 June 2017.

Capital Management

The capital of the Company is represented by the net assets attributable to holders of redeemable participating shares. Theamount of net assets attributable to holders of redeemable participating shares can change significantly on a daily basis, asthe Company is subject to daily subscriptions and redemptions at the discretion of the shareholders.

The ownership of Funds is concentrated, with a small number of investors holding significant shareholdings. As a result, aredemption request by a significant shareholder may have a significant impact on the liquidity of the Company and its abilityto continue as a going concern. See Note 10 for details of how this risk is mitigated.

The Company’s objective when managing capital is to safeguard its ability to continue as a going concern in order to achieveits overall objective of long-term capital growth and to maintain a strong capital base to support the development of itsinvestment activities.

The Investment Manager monitors capital on the basis of the value of net assets attributable to holders of redeemableparticipating shares.

The Alternative Investment Fund Manager of the Company met its AIFMD Capital requirement as it has in excess the higher of€125,000 plus 2bps or one quarter of expenditure in share capital.




7. Operating expenses

Note

Management fees 8Performance fees 8Administration fees 8Depositary fees 8Audit and tax reporting fees 7Professional feesDirectors’ feesOther operating expenses

Net expenses

Note


Net expenses

Note


Net expenses


Barings

Global

Loan Fund

31 Dec 2018

US$

(44,778,301)-

(4,237,854)(1,435,606)

(25,599)(11,394)(4,347)

(66,937)––––––––––––––

(50,560,038)––––––––––––––––––––––––––––

Barings

European

Loan Fund

31 Dec 2018

€

(34,416,830)-

(2,743,480)(681,194)(16,598)(36,394)(3,718)

(33,471)––––––––––––––

(37,931,685)––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

31 Dec 2018

€

(222,756)--

(3,284)(40)

-(3,718)

(91,235)––––––––––––––

(321,033)––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

31 Dec 2018

€

(185,447)(16,237)(35,000)

-(123)

(2,000)(3,718)

(22,400)––––––––––––––

(264,925)––––––––––––––––––––––––––––

Barings

Global Special

Situations

Credit Fund 1

31 Dec 2018

US$

(50,203)(9,436)

(105,861)-

(31)-

(4,347)(23,933)

––––––––––––––(193,811)

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 1

31 Dec 2018

GBP£

(994,471)-

(80,699)(21,355)

(590)(13,675)

(3,270)(10,992)

––––––––––––––(1,125,052)

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

31 Dec 2018

US$

(1,628,666)-

(118,639)(25,109)

(927)(9,799)(4,347)

(23,984)––––––––––––––

(1,811,471)––––––––––––––––––––––––––––

European

Loan

Strategy

Fund 1

31 Dec 2018

€

(1,394,406)-

(104,291)(31,472)

(923)(3,000)(3,718)

(17,222)––––––––––––––

(1,555,032)––––––––––––––––––––––––––––

Barings

Global Loan

and High Yield

Bond Fund

31 Dec 2018

US$

(2,758,804)-

(134,308)(22,583)

(631)(23,457)(4,598)

(51,510)––––––––––––––

(2,995,891)––––––––––––––––––––––––––––

Barings

U.S. Loan

Fund*

31 Dec 2018

US$

(1,346,337)-

(169,106)(54,210)(4,062)

(42,516)(1,192)(7,781)

––––––––––––––(1,625,204)

––––––––––––––––––––––––––––

Barings

Global

Investment

Funds Plc

31 Dec 2018

US$

(94,519,700)(28,550)

(8,266,472)(2,408,669)

(52,852)(154,061)(40,682)

(382,189)––––––––––––––

(105,853,175)––––––––––––––––––––––––––––




7. Operating expenses (continued)

Note


Net expenses

Note


Net expenses

Barings

Global

Loan Fund

31 Dec 2017

US$

(43,623,007)-

(4,529,568)(1,444,997)

(17,820)(75,001)(3,483)

(50,645)––––––––––––––

(49,744,521)––––––––––––––––––––––––––––

Barings

European

Loan Fund

31 Dec 2017

€

(32,232,657)-

(2,760,884)(659,141)(12,812)(70,262)(3,103)

(25,598)––––––––––––––

(35,764,457)––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

31 Dec 2017

€

(334,445)--

(2,995)(224)

(7,023)(3,103)

(93,577)––––––––––––––

(441,367)––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

31 Dec 2017

€

(243,625)(74,867)(35,001)

-(7,500)(6,920)(3,103)

(20,588)––––––––––––––

(391,604)––––––––––––––––––––––––––––

Barings

Global Special

Situations

Credit Fund 1

31 Dec 2017

US$

(112,109)-

(108,000)(2,439)

(923)(20,221)(3,483)

(17,319)––––––––––––––

(264,494)––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 1

31 Dec 2017

GBP£

(723,055)-

(82,921)(2,374)

(712)(27,690)(2,686)

(15,547)––––––––––––––

(854,985)––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

31 Dec 2017

US$

(1,643,228)-

(137,779)(24,140)(1,178)

(12,842)(3,483)

(33,925)––––––––––––––

(1,856,575)––––––––––––––––––––––––––––

European

Loan

Strategy

Fund 1

31 Dec 2017

€

(1,320,798)-

(117,633)(38,349)(1,044)

(18,321)(3,103)

(15,788)––––––––––––––

(1,515,036)––––––––––––––––––––––––––––

Barings

Global Loan

and High Yield

Bond Fund

31 Dec 2017

US$

(1,607,459)-

(70,951)(12,419)

(875)(30,843)(1,926)

(102,975)––––––––––––––

(1,827,448)––––––––––––––––––––––––––––

Barings

Global

Investment

Funds Plc

31 Dec 2017

US$

(86,732,881)(85,122)

(8,266,744)(2,283,514)

(46,258)(291,494)(29,981)

(401,943)––––––––––––––

(98,137,937)––––––––––––––––––––––––––––




7. Operating expenses (continued)

The below audit fees are exclusive of VAT.

The table below provides a breakdown of the total fee (inclusive of out of pocket expenses) accrued to the statutory auditorduring the financial year ended 31 December 2018 and 31 December 2017.

Auditor’s fees:Audit work – statutory audit

– audit related servicesNon audit work – taxation services

– other consultancy

Total fee accrued to statutory auditor

8. Related party transactions

Relationship between Parent and Subsidiary

The majority of the Funds’ investments are held through Subsidiaries (except Barings Global High Yield Strategies Fund whichholds all of its investments directly), namely:

Subsidiary Parent

Barings Global Loan Limited Barings Global Loan FundBarings European Loan Limited Barings European Loan FundBarings Mezzanine Loan 1 Limited Mezzanine Loan Fund 1Barings Global Special Situations Credit 1 Limited Barings Global Special Situations Credit Fund 1Barings Global Multi-Credit Strategy 1 Limited Global Multi-Credit Strategy Fund 1Barings Global Multi-Credit Strategy 2 Limited Global Multi-Credit Strategy Fund 2Barings European Loan Strategy 1 Limited European Loan Strategy Fund 1Barings Global Loan and High Yield Bond Limited Barings Global Loan and High Yield Bond FundBarings U.S. Loan Limited Barings U.S. Loan Fund

Cross investments within the Company

At 31 December 2018, Barings Global High Yield Strategies Fund held a cross investment in Barings Global Loan Fund, ClassF EUR Accumulation share class. The cost of the investment at this date was €4,355,355 (31 December 2017: €7,768,922) andthe market value was €5,156,532 (31 December 2017: €9,363,257). There were sales amounting to €4,172,363 during thefinancial year ended 31 December 2018 (31 December 2017: €2,093,051). There were no purchases during the financial yearended 31 December 2018 (31 December 2017: €1,126,517). This investment was eliminated in the combined totals of theCompany.

Significant shareholders

At 31 December 2018, Barings U.S. Loan Fund Unit Trust, a shareholder of Barings U.S. Loan Fund and registered in theCayman Islands, held 42.66% of the NAV of Barings U.S. Loan Fund.

At 31 December 2018, Barings U.S. Loan Fund LP, a shareholder of Barings U.S. Loan Fund and registered in Delaware U.S.A.,held 34.94% of the NAV of Barings U.S. Loan Fund.

Investments in other entities managed by the Investment Managers

At 31 December 2018, Barings Global Loan Limited, the subsidiary of Barings Global Loan Fund, held 87.95% of the NAV ofBarings USD Liquidity Fund a sub-fund of Barings Umbrella Fund plc which is also managed by the Investment Managers.

Barings

Global

Investment

Funds Plc

31 Dec 2018

US$

57,092-

14,596 -

––––––––––––––71,688

––––––––––––––––––––––––––––

Barings

Global

Investment

Funds Plc

31 Dec 2017

US$

34,032-

5,372-

––––––––––––––39,404

––––––––––––––––––––––––––––




8. Related party transactions (continued)

Investments in other entities managed by the Investment Managers (continued)

At 31 December 2018, Barings Global High Yield Strategies Fund held 2.23% of the NAV of Barings Global High Yield BondFund, a sub-fund of Barings Umbrella Fund plc, which is also managed by the Investment Managers.

At 31 December 2018, Barings Global High Yield Strategies Fund held 5.18% of the NAV of Barings Global Senior SecuredBond Fund, a sub-fund of Barings Umbrella Fund plc, which is also managed by the Investment Managers.

Investment by Ultimate Parent of Investment Managers

As at 31 December 2018 and 31 December 2017, Massachusetts Mutual Life Insurance Company, the ultimate parentcompany of Barings Asset Management Limited and Barings LLC, the Investment Managers, held the following shares:

31 Dec 2018 31 Dec 2017

Fund Share Class % Holding % of NAV % Holding % of NAV

Barings Global Special Situations Credit Fund 1 Class S USD Distribution 100.00 82.38% 100.00 82.37%

As at 31 December 2018 and 31 December 2017, MassMutual Asia Limited, a subsidiary of Massachusetts Mutual LifeInsurance Company, the ultimate parent company of the Investment Managers held the following shares:

31 Dec 2018 31 Dec 2017


Barings Global Special Situations Credit Fund 1 Class N USD Distribution 100.00 16.30% 100.00 15.77%

Investment by Investment Manager

As at 31 December 2018 and 31 December 2017, Barings LLC, the Investment Manager, held the following shares:

31 Dec 2018 31 Dec 2017


Barings Global Loan Fund Class F USD Accumulation 100.00 0.02% 100.00 0.02%Class S USD Accumulation 100.00 0.02% 100.00 0.00%

31 Dec 2018 31 Dec 2017


Barings Global Loan and High Yield Bond Fund Class F USD Accumulation 100.00 0.03% 100.00 0.02%

Investment by Distributor

As at 31 December 2018 and 31 December 2017, Barings (U.K.) Limited, the Distributor, held the following shares:

31 Dec 2018 31 Dec 2017


Barings European Loan Fund Class A GBP Accumulation 0.79 0.01% 0.61 0.01%Barings Global Loan Fund Class F GBP Accumulation 100.00 0.01% 100.00 0.00%

Investment Manager

To implement the investment strategies as specified in the Prospectus and the Supplements, up to 28 June 2018 the Fundshad appointed Barings Global Advisers Limited, an investment management company incorporated in the United Kingdom asInvestment Manager. With effect from 29 June 2018 Baring Asset Management Limited and Barings LLC are appointed asInvestment Managers. Barings Global Advisers Limited was authorised by the Financial Conduct Authority (“FCA”) to act asAIFM to the Funds up to 28 June 2018. With effect from 29 June 2018, Baring International Fund Managers (Ireland) Limited,authorised by the Central Bank of Ireland (“CBI”) was appointed as AIFM to the Funds.

On 25 May 2018, Barings European Loan Limited, the Subsidiary of Barings European Loan Fund, delivered non-cash assetsamounting to €504,059,679 and cash of €94,753,314 to Danske European Loan Fund I, a designated activity companymanaged by Barings Global Advisers Limited, in exchange for a redemption of €4,267,437 shares in Barings European LoanFund.

On 31 August 2018, Barings U.S. Loan Limited received non-cash assets, transferred from Babson Capital Floating RateIncome Master Fund, L.P., amounting to US$1,102,606,842 and cash of US$51,504,752 in exchange for subscriptions ofUS$1,154,111,594.





Investment Manager (continued)

The Investment Manager is entitled to receive out of the assets of the Funds fees equivalent to a percentage of the relevantshare class as follows:

Investment

Management Fee

% of NAV


Class A Shares 0.400%Class B Shares 0.475%Class C Shares 0.550%Class D Shares 0.650%Class E Shares 1.000%Class F Shares 0.000%Class G Shares 1.250%Class N Shares 0.475%Class S Shares 0.320%


Class A Shares 0.600%Class B Shares 0.525%Class C Shares 0.700%Class E Shares 1.000%Class G Shares 1.250%


Class A Shares 1.250%Unitranche Fee Base 0.600%


Class S Shares 0.375%


Class A Shares 0.750%Class B Shares 1.250%Class M Shares 0.000%Class N Shares 0.620%Class S Shares 0.500%


Class Q Shares 0.500%


Class A SharesUp to US$200,000,000 0.550%From US$200,000,000 0.500%


Class U EUR Distribution SharesUp to and including €160m 0.550%In excess of €160m and up to and including €300m 0.500%In excess of €300m 0.450%

Class U GBP Distribution SharesUp to and including €160m 0.550%In excess of €160m and up to and including €300m 0.500%In excess of €300m 0.450%





Investment Manager (continued)

Investment

Management Fee

% of NAV


Class A Shares 0.400%Class B Shares 0.475%Class C Shares 0.550%Class D Shares 0.650%Class E Shares 1.000%Class F Shares 0.000%Class G Shares 1.250%


Class A Shares 0.320%Class B Shares 0.375%Class C Shares 0.450%Class D Shares 0.550%Class E Shares 1.000%Class F Shares 0.000%Class G Shares 1.250%Class Z Shares 0.820%

The aggregate fees and expenses of the Administrator and the Depositary, as defined in the relevant Supplement, cannotexceed the following amounts:

Fund

Barings Global Loan Fund 0.200% of the NAV per annumBarings European Loan Fund 0.125% of the NAV per annumMezzanine Loan Fund 1 €110,000 per annumBarings Global High Yield Strategies Fund 0.200% of the NAV per annumBarings Global Special Situations Credit Fund 1 US$105,000 or 0.055% of the NAV per annumGlobal Multi-Credit Strategy Fund 1 0.065% of the NAV per annumGlobal Multi-Credit Strategy Fund 2 0.065% of the NAV per annumEuropean Loan Strategy Fund 1 0.075% of the NAV per annumBarings Global Loan and High Yield Bond Fund 0.200% of NAV per annumBarings U.S. Loan Fund 0.125% of NAV per annum

In the event that such fees and expenses exceed the stated limits per annum of the NAV of the Funds in respect of any period,the Investment Managers have agreed to waive a portion of their investment management fee as is equal to the excess (fundreimbursement). The Investment Managers at their discretion may, in consideration for agreeing to this waiver, in the event thatthe amount of such fees and expenses actually incurred during a year is less than the stated limits per annum of the NAV of theFunds, the Funds will pay the Investment Managers the difference between the amount of the fees and expenses actuallyincurred and the stated limits per annum of the NAV of the Funds (administration cap). The Investment Managers’ fees will accruemonthly and are payable in arrears. Investment Manager’s fees of US$94,519,700 (31 December 2017: US$86,732,881) havebeen charged for the financial year ended 31 December 2018, of which US$8,517,677 (31 December 2017: US$8,434,028) wasstill outstanding as at 31 December 2018.

Performance fees

Barings Global High Yield Strategies Fund charges a Performance fee of 15.00% above benchmark, as detailed in the relevantSupplement to the Prospectus.

Performance fees of €16,237 (31 December 2017: €74,867) have been charged to Barings Global High Yield Strategies Fundduring the financial year ended 31 December 2018, of which US$Nil (31 December 2017: €35,907) was still outstanding as at31 December 2018. The performance fee was contractually liable from May 2017. In accordance with the Prospectus, the initialPerformance Period began on 30 April 2012 which was the date of issue. This performance period ended 36 months later on30 April 2015.





Performance fees (continued)

Each subsequent performance period commences 1 year after the previous period - for example the next performance periodcommenced on 30 April 2015 and will crystallise on 30 April 2018.

In summary the performance fee did not crystallise for the first 3 years of the Fund but after the 3 years it will crystallise everyyear thereafter.

Barings Global Special Situations Credit Fund 1 charges a performance fee of 15.00% on Class N USD Distribution Shares overa series on IRR hurdle of 8.00%, as detailed in the relevant Supplement to the Prospectus. Performance fees of US$9,436 (31December 2017: US$Nil) were charged during the financial year ended 31 December 2018 of which US$7,811 (31 December2017: US$Nil) was still outstanding as at 31 December 2018.

Administration, Depositary and Operating fees

Administrator fees of US$8,266,472 (31 December 2017: US$8,454,036) have been charged for the financial year ended 31December 2018, of which US$643,896 (31 December 2017: US$774,449) was still outstanding as at 31 December 2018.

Depositary fees of US$2,408,669 (31 December 2017: US$2,327,677) have been charged for the financial year ended 31December 2018, of which US$250,883 (31 December 2017: US$224,126) was still outstanding as at 31 December 2018.

Revolving credit facilities and security deeds

There are revolving credit facilities in place between some of the Subsidiaries and State Street Bank and Trust Company, RBCBank, ScotiaBank and National Australia Bank Limited whereby credit facilities may from time to time be made available byState Street Bank and Trust Company, RBC Bank, ScotiaBank and National Australia Bank Limited to the relevant Subsidiariesof Barings Global Investment Funds Plc. There are also security deeds in place between the Subsidiaries and State Street Bankand Trust Company, RBC Bank, ScotiaBank and National Australia Bank Limited whereby the appropriate Funds act asGuarantor for any credit facilities extended to the Subsidiaries.

These facilities were not used during the financial year ended 31 December 2018 or 31 December 2017. Please refer to Note 17.

Directors’ fees

The total Directors’ fees are disclosed in Note 7. All of these fees were emoluments in respect of services to the Company. Thelisting of the members of the Board of Directors is shown on page 2. For the financial year ended 31 December 2018 and thefinancial year ended 31 December 2017, Mr. Peter Clark, Mr. Timothy Schulze and Mr. Julian Swayne waived their Directors’fees. While these Directors don’t receive fees from the Company directly for their role as Directors, they are paid in their roleas managing directors for the Investment Managers. The Investment Managers receive fees as outlined in Note 8.

Directors’ relationships

Mr. Peter Clark and Mr. Julian Swayne are managing directors of Baring Asset Management Limited, the Investment Managerand a Distributor for the Company. Mr. Timothy Schulze is a managing director of Barings LLC, also an Investment Manager. Mr.James Cleary, Ms. Barbara Healy and Mr. David Conway are also Directors of the Subsidiaries.

All of the Directors are also directors of Baring International Fund Managers (Ireland) Limited.

Employees

There were no direct employees of the Company for the financial year under review or in the prior year.

Transactions

The following related party transactions took place with other funds managed by the Investment Managers whereby the Fundswithin the Company bought assets from other funds managed by the Investment Manager. These transactions were not withinthe umbrella of the Company and therefore they were not eliminated on consolidation.

Trade details during the financial year ended 31 Dec 2018 Purchases Trade Value Sales Trade Value

Barings Global Loan Fund 16,333,984 -Barings European Loan Fund 11,937,597 533,756,944Barings Global High Yield Strategies Fund - 621,263Barings Global Special Situations Credit Fund 1 - 193,251Barings U.S. Loan Fund 1,120,384,760 -





Transactions (continued)

Trade details during the financial year ended 31 Dec 2017 Purchases Trade Value Sales Trade Value

Barings Global Loan Fund 43,764,882 22,989,646Barings European Loan Fund 12,826,479 2,076,160Mezzanine Loan Fund 1 9,700,000 -Barings Global High Yield Strategies Fund 189,256 394,176Global Multi-Credit Strategy Fund 1 288,296 -Global Multi-Credit Strategy Fund 2 2,060,232 -Barings Global Loan and High Yield Bond Fund 453,069 447,158

All related party transactions were made on terms equivalent to those that prevail in arm’s length transactions.

9. Fair value hierarchy

The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs used inmaking the measurements:

• Level 1 - Quoted market price in an active market for an identical instrument.• Level 2 - Valuation techniques based on observable inputs. This category includes instruments valued using: quoted

market prices in active markets for similar instruments; quoted prices for similar instruments in markets that areconsidered less than active or other valuation techniques where all significant inputs are directly or indirectly observablefrom market data.

• Level 3 - Valuation techniques using significant unobservable inputs. This category includes all instruments where thevaluation technique includes inputs not based on observable data and the unobservable inputs could have a significantimpact on the instrument’s valuation. This category includes instruments that are valued based on quoted prices forsimilar instruments where significant unobservable adjustments or assumptions are required to reflect differencesbetween the instruments.

Valuation Framework

The Company has an established control framework with respect to measurement of fair values. This framework includes aValuations Committee which is independent of front office management. Specific controls include:

• Review and approval of valuation methodologies;• A review and approval process for changes to pricing models;• Review of unobservable inputs and valuation adjustments;• Review of independent third party pricing sources; and• Review of prices where no third party pricing source is available.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on thebasis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significanceof an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputsthat require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. Assessing thesignificance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specificto the asset or liability.

The determination of what constitutes ‘observable’ requires significant judgement by the Company. The Company considersobservable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, notproprietary and provided by independent sources that are actively involved in the relevant market. All of the Funds’ investments,with the exception of Barings Global High Yield Strategies Fund, have investments which are held through the wholly ownedSubsidiaries.

The loans to Subsidiaries, with the exception of Mezzanine Loan Fund 1, are classified as Level 2, reflecting the observableinputs used in valuing the underlying portfolios of the unconsolidated Subsidiaries. The investment in Mezzanine Loan Fund 1is classified as Level 3 reflecting the use of unobservable inputs used in valuing the underlying portfolio of the unconsolidatedSubsidiary. Please refer to the audited financial statements of the Subsidiaries included in the Appendix to these financialstatements.




9. Fair value hierarchy (continued)

Valuation Framework (continued)

For each class of assets and liabilities not measured at fair value in the Statements of Financial Position but for which fair valueis disclosed, IFRS 13 requires the Company to disclose the level within the fair value hierarchy which the fair value measurementwould be categorised and a description of the valuation technique and inputs used in the technique.

Assets and liabilities not carried at fair value are carried at amortised cost; their carrying values are a reasonable approximationof fair value.

Cash and cash equivalents include deposits held with banks and other short-term investments in an active market and they arecategorised as Level 1.

Receivable for investments sold and other receivables include the contractual amounts for settlement of trades and otherobligations due to the Company. Payable for investments sold and other payables represent the contractual amounts andobligations due by the Company for settlement of trades and expenses. All receivable and payable balances are categorisedas Level 2.

The puttable value of redeemable shares is calculated based on the net difference between total assets and all other liabilitiesof each Fund within the Company in accordance with the Funds’ offering memorandum. These shares are not traded on anactive market. A demand feature is attached to these shares, as they are redeemable at the holders’ option and can be putback to the Funds at any dealing date for cash/assets equal to a proportionate share of the Fund’s NAV attributable to the shareclass. The fair value is based on the amount payable on demand, discounted from the first date that the amount could berequired to be paid. The impact of discounting in this instance is not material. As such, Level 2 is deemed to be the mostappropriate categorisation for net assets attributable to holders of redeemable shares held with the exception of MezzanineLoan Fund 1 and Barings Global Special Situations Credit Fund 1 which are classified as level 3.

All forward foreign exchange contracts are classified as Level 2 since they are valued using observable inputs but are notquoted in an active market.

Transfers between levels of the fair value hierarchy are deemed to have occurred at the end of the financial year. There wereno transfers between Level 1 and Level 2 during the reporting period (31 December 2017: none). Transfers between Level 2and Level 3 are discussed after the Level 3 reconciliation tables below, where relevant.

The following tables analyse within the fair value hierarchy the Funds’ financial assets and liabilities measured at fair value at31 December 2018:

Barings Global Loan Fund Total

Level 1 Level 2 Level 3 Fair Value

US$ US$ US$ US$

Financial assets

At fair value through profit or loss:- Loans to Subsidiary - 7,979,084,537 - 7,979,084,537- Forward foreign exchange contracts - 12,043,536 - 12,043,536

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 7,991,128,073 - 7,991,128,073

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––


Held for trading:- Forward foreign exchange contracts - (45,094,990) - (45,094,990)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total liabilities - (45,094,990) - (45,094,990)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––






Barings European Loan Fund Total


€ € € €

Financial assets


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 5,314,221,337 - 5,314,221,337

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––




–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Mezzanine Loan Fund 1 Total


€ € € €

Financial assets

At fair value through profit or loss:- Loans to Subsidiary - - 12,897,739 12,897,739

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - - 12,897,739 12,897,739

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––


Total


€ € € €

Financial assets

At fair value through profit or loss:- Investment funds - 39,273,772 - 39,273,772

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 39,273,772 - 39,273,772

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Barings Global Special Situations Credit Fund 1 Total


US$ US$ US$ US$

Financial assets

At fair value through profit or loss:- Loans to Subsidiary - - 9,609,618 9,609,618

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - - 9,609,618 9,609,618

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––






Global Multi-Credit Strategy Fund 1 Total


GBP£ GBP£ GBP£ GBP£

Financial assets

At fair value through profit or loss:- Loans to Subsidiary - 190,903,535 - 190,903,535

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 190,903,535 - 190,903,535

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––



US$ US$ US$ US$

Financial assets


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 292,320,943 - 292,320,943

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

European Loan Strategy Fund 1 Total


€ € € €

Financial assets


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 271,963,213 - 271,963,213

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Barings Global Loan and High Yield Bond Fund Total


US$ US$ US$ US$

Financial assets

At fair value through profit or loss:- Loans to Subsidiary - 200,808,580 - 200,808,580- Forward foreign exchange contracts - 123,737 - 123,737

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 200,932,317 - 200,932,317

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––




–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––






Barings U.S. Loan Fund* Total


US$ US$ US$ US$

Financial assets


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 1,263,814,843 - 1,263,814,843

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––


Held for trading:- Forward foreign exchange contracts - (293,993) - (293,993)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total liabilities - (293,993) - (293,993)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––


The following tables analyse within the fair value hierarchy the Funds’ financial assets and liabilities measured at fair value at31 December 2017:

Barings Global Loan Fund Total


US$ US$ US$ US$

Financial assets

Designated at fair value through profit or loss:- Loans to Subsidiary - 9,363,009,926 - 9,363,009,926Financial assets held for trading:- Forward foreign exchange contracts - 111,624,810 - 111,624,810

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 9,474,634,736 - 9,474,634,736

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––




–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––






Barings European Loan Fund Total


€ € € €

Financial assets

Designated at fair value through profit or loss:- Loans to Subsidiary - 6,054,632,113 - 6,054,632,113Financial assets held for trading:- Forward foreign exchange contracts - 914,254 - 914,254

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 6,055,546,367 - 6,055,546,367

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––




–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Mezzanine Loan Fund 1 Total


€ € € €

Financial assets

Designated at fair value through profit or loss:- Loans to Subsidiary - - 38,117,566 38,117,566

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - - 38,117,566 38,117,566

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––


Total


€ € € €

Financial assets

Designated at fair value through profit or loss:- Investment funds - 56,065,964 - 56,065,964

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 56,065,964 - 56,065,964

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Barings Global Special Situations Credit Fund 1 Total


US$ US$ US$ US$

Financial assets

Designated at fair value through profit or loss:- Loans to Subsidiary - 11,023,593 - 11,023,593

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 11,023,593 - 11,023,593

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––








GBP£ GBP£ GBP£ GBP£

Financial assets


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 197,543,969 - 197,543,969

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––



US$ US$ US$ US$

Financial assets


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 311,515,833 - 311,515,833

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

European Loan Strategy Fund 1 Total


€ € € €

Financial assets


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 282,142,289 - 282,142,289

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––




–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Barings Global Loan and High Yield Bond Fund Total


US$ US$ US$ US$

Financial assets

Designated at fair value through profit or loss:- Loans to Subsidiary - 293,166,174 - 293,166,174Financial assets held for trading:- Forward foreign exchange contracts - 10,958,690 - 10,958,690

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total assets - 304,124,864 - 304,124,864

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––


Held for trading:- Forward foreign exchange contracts - (163,028) - (163,028)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total liabilities - (163,028) - (163,028)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––






The following table shows the movement in Level 3 of the fair value hierarchy of the Mezzanine Loan Fund 1 for the financialyear ended 31 December 2018 and 31 December 2017:

Financial assets Financial assets

at fair value at fair value

through profit or through profit or

loss loss

31-Dec-18 31-Dec-17

€ €

Opening balance 38,117,566 33,610,122Net gain/(loss) from Subsidiaries at fair value through profit or loss 3,632,704 (3,507,244)Sales (28,852,531) 8,014,688

–––––––––––––– ––––––––––––––Closing balance 12,897,739 38,117,566

–––––––––––––– –––––––––––––––––––––––––––– ––––––––––––––

The following table shows the movement in Level 3 of the fair value hierarchy of the Barings Global Special Situations CreditFund 1 for the financial year ended 31 December 2018 and 31 December 2017:

Financial assets Financial assets

at fair value at fair value

through profit or through profit or

loss loss

31-Dec-18 31-Dec-17

€ €

Opening balance - -Net gain/(loss) from Subsidiaries at fair value through profit or loss - -Sales - -Transfers in 9,609,618 -

–––––––––––––– ––––––––––––––Closing balance 9,609,618 -

–––––––––––––– –––––––––––––––––––––––––––– ––––––––––––––

Sensitivity of Level 3 asset measured at fair value to changes in assumptionsThe results of using reasonably possible alternative assumptions for valuing the Level 3 assets may result in the fair valueestimate and recoverability of the assets being subject to uncertainty and a range of possible outcomes are likely. Suchdifferences, if any, may have a material effect on the overall portfolio as at 31 December 2018 or as at 31 December 2017.


Sensitivity analysis of Level 3:31-Dec-18 31-Dec-17

% Change € €

5% 644,887 1,905,87810% 1,289,774 3,811,757

The significant unobservable inputs used in measuring the fair value include:

2018

Asset Class Input €

Loans to Subsidiary Fair value of net assets of subsidiary excluding inter company debt 12,897,739

2017



Please refer to the financial statements of Barings Mezzanine Loan 1 Limited for information on methodology and inputs.





Sensitivity of Level 3 asset measured at fair value to changes in assumptions (continued)


Sensitivity analysis of Level 3:31-Dec-18 31-Dec-17

% Change US$ US$

5% 480,481 -10% 960,962 -

The significant unobservable inputs used in measuring the fair value include:

2018



Please refer to the financial statements of Barings Global Special Situations Credit 1 Limited for information on methodologyand inputs.

10. Financial instruments and associated risks

At 31 December 2018 the Company had ten active Funds, Barings Global Loan Fund, Barings European Loan Fund, MezzanineLoan Fund 1, Barings Global High Yield Strategies Fund, Barings Global Special Situations Credit Fund 1, Global Multi-CreditStrategy Fund 1, Global Multi-Credit Strategy Fund 2 , European Loan Strategy Fund 1, Barings Global Loan and High YieldBond Fund and Barings U.S. Loan Fund. Nine of the ten Funds have Subsidiaries.

As at 31 December 2018, the Subsidiaries held all of the assets on behalf of the nine relevant Funds, with the exception of someof the forward foreign exchange contracts on Barings Global Loan Fund, Barings European Loan Fund, Barings Global Loanand High Yield Bond Fund and Barings U.S. Loan Fund. Since the Funds own the Subsidiaries, all of the risks affecting theSubsidiaries are transferred to the Funds. For a detailed review of the financial instruments and associated risks of theinvestments held by the Subsidiaries, please refer to the audited financial statements of the Subsidiaries which are attached inthe Appendix to these financial statements. The risks faced by the Funds are also transferred to the Company. The Funds wereexposed to market risk, credit risk and liquidity risk arising from the financial instruments they hold.

All of the Funds have utilised zero leverage and have no limits in the Funds’ documentation.

Market risk

Market risk embodies the potential for both losses and gains and includes foreign currency risk, interest rate risk and price risk,which are discussed in detail under separate headings within this note.

The Funds’ exposure to market risk is that the value of assets will generally fluctuate with, among other things, general economicconditions, the condition of certain financial markets, international political events, developments or trends in any particularindustry and the financial condition of the issuers of the loans that the Funds invest in.

The Funds’ market risk is managed on a daily basis by the Investment Managers in accordance with policies and proceduresin place. The Funds’ overall market positions are reported to the Board of Directors on a quarterly basis.

As the majority of the financial instruments are carried at fair value through the profit or loss, all changes in market conditionswill directly impact the net assets of the Funds.




10. Financial instruments and associated risks (continued)

Foreign currency risk

Foreign currency risk, as defined by IFRS 7, arises as the value of future transactions, recognised monetary assets andmonetary liabilities denominated in other currencies fluctuate due to changes in foreign exchange rates. IFRS 7 considers theforeign exchange exposure relating to non-monetary assets and liabilities to be a component of market price risk, not currencyrisk.

The Company’s combined accounts are shown in US$ though investments are made and realised in other currencies. Changesin rates of exchange may have an adverse effect on the value, price or income of the investments of the Company.

The Investment Managers use rolling spot and forward foreign exchange contracts to manage foreign currency risk.

The Funds enter into forward foreign exchange contracts to hedge non-base denominated assets and liabilities back into thebase currency. The Investment Managers implement and manage this process, the Investment Managers regularly review suchpositions to ensure that they are in line with the Funds’ investment policies.

Barings Global Loan Fund, Barings European Loan Fund, Barings Global Loan and High Yield Bond Fund and Barings U.S.Loan Fund have issued non-base currency share classes, as disclosed in Note 6. The foreign currency risk that exists toinvestors in these non base currency share classes is mitigated by a share class hedging programme. Forward foreignexchange contracts are outlined in the Schedule of Investments.

The following tables set out the shareholders’ total exposure to foreign currency risk and the net exposure to foreign currenciesof the monetary assets and liabilities as at 31 December 2018 for Barings Global Loan Fund, Barings European Loan Fund,Barings Global Loan and High Yield Bond Fund and Barings U.S. Loan Fund. None of the other Funds have issued any non-base currency share classes and therefore not exposed to foreign currency risks. Foreign currency risk that exists at asubsidiary level is hedged by forward foreign exchange contracts (with the exception of Barings Mezzanine Loan 1 Limited),eliminating all material foreign currency risk that could impact the fair value of the Company’s investment.

No portfolio hedging is undertaken in Barings Mezzanine Loan 1 Limited, as a result foreign currency risk exists to the extentthat it does in the Subsidiary. Please refer to the audited financial statements of the Subsidiary which are attached in theAppendix to these Financial Statements.


Financial assets and Forward foreign

liabilities at fair value Cash and cash Other assets exchange

through profit or loss equivalents and liabilities* contracts** Net exposure % of

US$ US$ US$ US$ US$ Exposure

AUD - - (1,338,414,202) 1,336,951,317 (1,462,885) (0.02)CAD - - (1,113,752) 1,112,301 (1,451) (0.00)CHF - - (743,230,042) 742,317,921 (912,121) (0.01)DKK - - (640,241) 639,382 (859) (0.00)EUR - - (1,059,886,171) 1,058,682,096 (1,204,075) (0.02)GBP - - (2,059,198,622) 2,056,983,271 (2,215,351) (0.03)NOK - - (10,782,640) 10,769,411 (13,229) (0.00)SEK - - (124,930,771) 124,772,715 (158,056) (0.00)SGD - - (3,374,727) 3,369,867 (4,860) (0.00)

**Other assets and liabilities is comprised mainly of trade payables, trade receivables and liabilities to holders of Redeemable Shares.**The forward foreign exchange contracts held are for share class hedging purposes.





Foreign currency risk (continued)





€ € € € € Exposure

AUD - - (15,585,488) 15,585,403 (85) (0.00)CAD - - (14,823,422) 14,822,602 (820) (0.00)CHF - - (132,185,843) 132,213,533 27,690 0.00DKK - - (259,397) 259,454 57 0.00GBP - - (154,498,033) 154,529,073 31,040 0.00JPY - - (25,543,290) 25,550,189 6,899 0.00NOK - - (98,991,708) 98,962,930 (28,778) (0.00)SEK - - (29,798,501) 29,805,630 7,129 0.00SGD - - (11,585,436) 11,585,575 139 0.00USD - - (1,076,135,795) 1,076,307,259 171,464 0.00






AUD - - (196,008,909) 195,976,566 (32,343) (0.02)

Barings U.S. Loan Fund***





CHF - - (4,544,021) 4,555,563 11,542 0.00EUR - - (15,003,963) 15,041,959 37,996 0.00GBP - - (1,390,379) 1,393,834 3,455 0.00JPY - - (464,340,608) 464,998,557 657,949 0.05

***Other assets and liabilities is comprised mainly of trade payables, trade receivables and liabilities to holders of Redeemable Shares.***The forward foreign exchange contracts held are for share class hedging purposes.***This Fund launched on 31 August 2018.






The following tables set out the shareholders’ total exposure to foreign currency risk and the net exposure to foreign currenciesof the monetary assets and liabilities as at 31 December 2017.






AUD - - (1,933,521,428) 1,924,674,025 (8,847,403) (0.09)CAD - - (1,005,859) 1,002,812 (3,047) (0.00)CHF - - (630,465,539) 628,632,765 (1,832,774) (0.02)DKK - - (869,146) 866,171 (2,975) (0.00)EUR - - (1,216,412,005) 1,213,233,318 (3,178,687) (0.03)GBP - - (2,331,935,120) 2,323,375,760 (8,559,360) (0.09)NOK - - (20,758,910) 20,663,604 (95,306) (0.00)SEK - - (79,809,945) 79,704,006 (105,939) (0.00)SGD - - (1,675,517) 1,669,774 (5,743) (0.00)






AUD - - (13,609,259) 13,575,701 (33,558) (0.00)CAD - - (15,728,031) 15,711,649 (16,382) (0.00)CHF - - (73,004,854) 72,946,514 (58,340) (0.00)DKK - - (431,400) 432,277 877 0.00GBP - - (184,040,614) 183,622,150 (418,464) (0.01)JPY - - (18,977,904) 18,953,609 (24,295) (0.00)NOK - - (91,684,155) 91,662,676 (21,479) (0.00)SEK - - (593,876) 592,374 (1,502) (0.00)SGD - - (12,420,580) 12,394,773 (25,807) (0.00)USD - - (1,220,916,340) 1,148,830,548 (72,085,792) (1.18)






GBP - - (113,464,781) 114,425,846 961,065 0.35






AUD - - (303,860,147) 302,520,713 (1,339,434) (0.44)

***Other assets and liabilities is comprised mainly of trade payables, trade receivables and liabilities to holders of Redeemable Shares.***The forward foreign exchange contracts held are for share class hedging purposes.








Sensitivity analysisThe following currency sensitivity analysis information is a relative estimate of risk and is not intended to be a precise andaccurate number. The calculations are based on historical data. Future rate movements and correlations between currenciescould vary significantly from those experienced in the past.

At 31 December 2018, had the exchange rate increased or decreased by 5% with all other variables held constant, the increaseor decrease respectively in the value of the shareholders’ investments, denominated in currencies other than the base currencyof the relevant Fund, attributable to holders of redeemable shares and the change in net assets attributable to holders ofredeemable shares per the Statements of Comprehensive Income would be as follows:

AUDCADCHFDKKEURGBPJPYNOKSEKSGDUSD


At 31 December 2017, had the exchange rate increased or decreased by 5% with all other variables held constant, the increaseor decrease respectively in the value of the shareholders’ investments, denominated in currencies other than the base currencyof the relevant Fund, attributable to holders of redeemable shares and the change in net assets attributable to holders ofredeemable shares per the Statements of Comprehensive Income would be as follows:

AUDCADCHFDKKEURGBPJPYNOKSEKSGDUSD

Barings

Global

Loan Fund

US$

(73,144)(73)

(45,606)(43)

(60,204)(110,768)

-(661)

(7,903)(243)

-

Barings

European

Loan Fund

€

441

(1,385)(3)-

(1,552)(345)

1,439(356)

(7)(8,573)

Barings

Global Loan

and High Yield

Bond Fund

US$

1,617----------

Barings

U.S. Loan

Fund*

US$

--

(577)-

(1,900)(173)

(32,897)----

Barings

Global

Loan Fund

US$

442,370152

91,639149

158,934427,968

-4,7655,297

287-

Barings

European

Loan Fund

€

1,678819

2,917(44)

-20,9231,2151,074

751,290

3,604,290

European

Loan

Strategy

Fund 1

€

-----

48,053-----

Barings

Global Loan

and High Yield

Bond Fund

US$

66,972----------



Interest rate risk

The Company is exposed to the risk that the fair value or future cash flows of its financial instruments will fluctuate as a resultof changes in market interest rates. The majority of the Funds’ investments are held by wholly owned Subsidiaries, therefore,the associated risks of the Subsidiaries are currently substantially the same as the risks associated with the Funds. For adetailed review of the financial instruments and associated risks of the investment in the Subsidiaries, please refer to the auditedfinancial statements of the Subsidiaries which are attached in the Appendix to these financial statements.

The Funds have no liabilities as at 31 December 2018 or 31 December 2017 that are exposed to changes in interest rates.

The below interest rate sensitivity analysis information is a relative estimate of risk and is not intended to be a precise andaccurate number. The calculations are based on historical data. Future interest rate movements could vary significantly fromthose experienced in the past.

Based on the portfolio’s composition as at 31 December 2018, the corresponding increase/(decrease) in change in net assetsattributable to holders of redeemable shares, from an increase/(decrease) in average interest rates would be as follows:


% Effect % Effect

Interest rate of NAV Interest rate of NAV

change 31 Dec 2018 change 31 Dec 2018

(0.50) +0.15 +0.50 (0.15)(0.75) +0.23 +0.75 (0.23)(1.00) +0.30 +1.00 (0.30)


% Effect % Effect



(0.50) +0.19 +0.50 (0.19)(0.75) +0.29 +0.75 (0.28)(1.00) +0.38 +1.00 (0.37)


% Effect % Effect



(0.50) +0.59 +0.50 (0.58)(0.75) +0.89 +0.75 (0.87)(1.00) +0.07 +1.00 (1.15)


% Effect % Effect



(0.50) +0.06 +0.50 (0.06)(0.75) +0.09 +0.75 (0.09)(1.00) +0.12 +1.00 (0.12)





Interest rate risk (continued)


% Effect % Effect



(0.50) +0.71 +0.50 (0.70)(0.75) +1.07 +0.75 (1.04)(1.00) +1.43 +1.00 (1.39)


% Effect % Effect



(0.50) +0.66 +0.50 (0.65)(0.75) +1.00 +0.75 (0.97)(1.00) +1.33 +1.00 (1.29)


% Effect % Effect



(0.50) +0.21 +0.50 (0.21)(0.75) +0.32 +0.75 (0.31)(1.00) +0.43 +1.00 (0.42)


% Effect % Effect



(0.50) +0.69 +0.50 (0.68)(0.75) +1.04 +0.75 (1.02)(1.00) +1.40 +1.00 (1.36)

Barings U.S. Loan Fund*

% Effect % Effect



(0.50) +0.12 +0.50 (0.11)(0.75) +0.17 +0.75 (0.17)(1.00) +0.23 +1.00 (0.23)







Based on the portfolio’s composition as at 31 December 2017, the corresponding increase/(decrease) in change in net assetsattributable to holders of redeemable shares, from an increase/(decrease) in average interest rates would be as follows:


% Effect % Effect



(0.50) +0.13 +0.50 (0.13)(0.75) +0.19 +0.75 (0.19)(1.00) +0.26 +1.00 (0.25)


% Effect % Effect



(0.50) +0.20 +0.50 (0.20)(0.75) +0.30 +0.75 (0.30)(1.00) +0.41 +1.00 (0.40)


% Effect % Effect



(0.50) +0.41 +0.50 (0.40)(0.75) +0.62 +0.75 (0.60)(1.00) +0.82 +1.00 (0.80)


% Effect % Effect



(0.50) +0.09 +0.50 (0.09)(0.75) +0.13 +0.75 (0.13)(1.00) +0.18 +1.00 (0.18)


% Effect % Effect



(0.50) +0.66 +0.50 (0.65)(0.75) +1.00 +0.75 (0.98)(1.00) +1.34 +1.00 (1.30)


% Effect % Effect



(0.50) +0.64 +0.50 (0.63)(0.75) +0.96 +0.75 (0.94)(1.00) +1.29 +1.00 (1.25)







% Effect % Effect



(0.50) +0.23 +0.50 (0.22)(0.75) +0.34 +0.75 (0.34)(1.00) +0.46 +1.00 (0.45)


% Effect % Effect



(0.50) +0.76 +0.50 (0.75)(0.75) +1.15 +0.75 (1.12)(1.00) +1.54 +1.00 (1.49)

Price risk

Many of the Funds’ financial instruments are carried at fair value on the Statements of Financial Position. Usually the fair valueof the financial instruments can be reliably determined within a reasonable range of estimates. For certain other financialinstruments, including other receivables, accounts payable and accrued expenses, the carrying amounts approximate fairvalue due to the immediate or short-term nature of these financial instruments.

The carrying amounts of all of the Funds’ financial assets and financial liabilities at the financial year end date approximatedtheir fair values.

Fair value estimates are made at a specific point in time, based on market conditions and information about the financialinstrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgement (e.g.,interest rates, volatility, estimated cash flows etc.) and therefore, cannot be determined with precision.

Sensitivity analysisThe below price sensitivity analysis information is a relative estimate of risk and is not intended to be a precise and accuratenumber. The calculations are based on historical data. Future price movements could vary significantly from those experiencedin the past.

A 5% increase in investment prices at 31 December 2018, would have increased the value of investments at fair value throughprofit or loss by US$821,586,950 (31 December 2017: US$897,518,777).

The majority of the Funds’ investments are held by wholly owned Subsidiaries, therefore, the associated risks of the Subsidiariesare currently substantially the same as the risks associated with the Funds. For a detailed review of the financial instrumentsand associated risks of the investment in the Subsidiaries, please refer to the audited financial statements of the Subsidiarieswhich are attached in the Appendix to these financial statements.

Barings Global High Yield Strategies Fund invests primarily in investment funds. The value of the investment funds will besubject to price risk on its underlying investments.

Credit risk

Credit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment that it hasentered into with the Funds, resulting in a financial loss to the Funds.

The majority of the Funds’ investments are held by wholly owned Subsidiaries, therefore, the associated risks of the Subsidiariesare currently substantially the same as the risks associated with the Funds. For a detailed review of the financial instrumentsand associated risks of the investment in the Subsidiaries, please refer to the audited financial statements of the Subsidiarieswhich are attached in the Appendix to these financial statements.





Credit risk (continued)

The Funds’ credit risk concentration is spread between a number of counterparties. The top holdings represent the followingpercentage of the respective portfolios excluding investments in Subsidiaries and Forward foreign exchange contracts:

Fund 31 Dec 2018 31 Dec 2017

Barings Global High Yield Strategies Fund 100.00% 100.00%

The Funds may utilise forward foreign exchange contracts to seek to hedge against declines in the value of the Funds’ positionsas a result of changes in foreign currency exchange rates. The Funds are exposed to credit risk associated with the forwardforeign exchange contract counterparties with whom it trades and will also bear the risk of settlement default.

None of the financial assets and financial liabilities are offset in the Statements of Financial Position. The Company’s financialassets and financial liabilities are subject to an enforceable master netting arrangement or similar agreement that covers similarfinancial instruments. While the terms and conditions of these agreements may vary, all transactions under any such agreementconstitute a single contractual relationship. Each party’s obligation to make any payments, deliveries or other transfers inrespect of any transaction under such an agreement may be netted against the other party’s obligations under such agreement.A default by a party in performance with respect to one transaction under such an agreement would give the other party theright to terminate all transactions under such agreement and calculate one net amount owed from one party to the other. Thefollowing tables present information about the offsetting of derivative instruments.

At 31 December 2018, the Company’s derivative assets and liabilities are as follows:

Barings Global Loan Fund Value of

derivative Financial Collateral

Description Counterparty assets instrument received Net

US$ US$ US$ US$

Forward foreign exchange contracts National AustraliaBank Limited 5,073,045 (5,073,045) - -

Forward foreign exchange contracts State Street Bank 6,970,491 (6,970,491) - -–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

12,043,536 (12,043,536) - -–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Value of


Description Counterparty liabilities instrument pledged Net

US$ US$ US$ US$

Forward foreign exchange contracts National AustraliaBank Limited (27,050,199) 5,073,045 - (21,977,154)

Forward foreign exchange contracts State Street Bank (18,044,791) 6,970,491 - (11,074,300)–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

(45,094,990) 12,043,536 - (33,051,454)–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––






Barings European Loan Fund Value of



€ € € €

Forward foreign exchange contracts National AustraliaBank Limited 108,129 (108,129) - -

Forward foreign exchange contracts State Street Bank 1,124,843 (1,124,843) - -–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

1,232,972 (1,232,972) - -–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Value of



€ € € €

Forward foreign exchange contracts National AustraliaBank Limited (3,603,042) 108,129 - (3,494,913)

Forward foreign exchange contracts State Street Bank (4,893,480) 1,124,843 - (3,768,637)–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

(8,496,522) 1,232,972 - (7,263,550)–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Barings Global Loan and High Yield Bond Fund Value of



US$ US$ US$ US$


Forward foreign exchange contracts State Street Bank 91,092 (91,092) - -–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

123,737 (123,737) - -–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Value of



US$ US$ US$ US$


Forward foreign exchange contracts State Street Bank (1,999,276) 91,092 - (1,908,184)–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

(5,029,004) 123,737 - (4,905,267)–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––






Barings U.S. Loan Fund* Value of



€ € € €

Forward foreign exchange contracts National AustraliaBank Limited 4,837,117 - - 4,837,117

Forward foreign exchange contracts State Street Bank 5,396,436 (293,993) - 5,102,443–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

10,233,553 (293,993) - 9,939,560–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Value of



€ € € €

Forward foreign exchange contracts State Street Bank (293,993) 293,993 - -–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

(293,993) 293,993 - -–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––


At 31 December 2017, the Company’s derivative assets and liabilities are as follows:

Barings Global Loan Fund Value of



US$ US$ US$ US$

Forward foreign exchange contracts National AustraliaBank Limited 61,462,594 (628,785) - 60,833,809


111,624,810 (1,091,266) - 110,533,544–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Value of



US$ US$ US$ US$

Forward foreign exchange contracts National AustraliaBank Limited (628,785) 628,785 - -


(1,091,266) 1,091,266 - -–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––






Barings European Loan Fund Value of



€ € € €


Forward foreign exchange contracts State Street Bank 729,298 (729,298) - -–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

914,254 (914,254) - -–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Value of



€ € € €


Forward foreign exchange contracts State Street Bank (12,765,055) 729,298 - (12,035,757)–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

(22,074,011) 914,254 - (21,159,757)–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

European Loan Strategy Fund 1 Value of



€ € € €

Forward foreign exchange contracts National AustraliaBank Limited (613,183) - - (613,183)

Forward foreign exchange contracts State Street Bank (588,533) - - (588,533)–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

(1,201,716) - - (1,201,716)–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––






Barings Global Loan and High Yield Bond Fund Value of



US$ US$ US$ US$

Forward foreign exchange contracts National AustraliaBank Limited 6,251,130 (94,985) - 6,156,145


10,958,690 (163,028) - 10,795,662–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Value of



US$ US$ US$ US$

Forward foreign exchange contracts National AustraliaBank Limited (94,985) 94,985 - -


(163,028) 163,028 - -–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Credit risk arising on transactions with brokers relates to transactions awaiting settlement. The Funds monitor the credit ratingand financial positions of the brokers used to mitigate this risk. The Investment Managers also monitor the settlement processon a regular basis.

At 31 December 2018, the Funds’ financial assets exposed to credit risk are as follows:

Loans to Subsidiaries/Investment fundsForward foreign exchange contractsOther receivablesReceivable for fund shares soldCash and cash equivalents

Total

Loans to Subsidiaries/Investment fundsForward foreign exchange contractsOther receivablesReceivable for fund shares sold

Total


Barings

Global

Loan Fund

US$

7,979,084,53712,043,536

8,316--

––––––––––––––7,991,136,389

––––––––––––––––––––––––––––

Barings

European

Loan Fund

€

5,312,988,3651,232,972

-362,912

-––––––––––––––

5,314,584,249––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

€

12,897,739----

––––––––––––––12,897,739

––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

€

39,273,772---

77,896––––––––––––––

39,351,668––––––––––––––––––––––––––––

Barings

Global Special

Situations

Credit Fund 1

US$

9,609,618----

––––––––––––––9,609,618

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 1

GBP£

190,903,535-

3,094-

––––––––––––––190,906,629

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

US$

292,320,943-

3,191-

––––––––––––––292,324,134

––––––––––––––––––––––––––––

European

Loan

Strategy

Fund 1

€

271,963,213--

25,159,827––––––––––––––

297,123,040––––––––––––––––––––––––––––

Barings

Global Loan

and High Yield

Bond Fund

US$

200,808,580123,737

--

––––––––––––––200,932,317

––––––––––––––––––––––––––––

Barings

U.S. Loan

Fund*

31 Dec 2018

US$

1,253,581,29010,233,553

-74,095

––––––––––––––1,263,888,938

––––––––––––––––––––––––––––






At 31 December 2017, the Funds’ financial assets exposed to credit risk are as follows:

Loans to Subsidiaries/Investment fundsForward foreign exchange contractsOther receivablesReceivable for fund shares soldCash and cash equivalents

Total

Loans to subsidiariesForward foreign exchange contracts

Total

Amounts in the above tables are based on the carrying value of the financial assets as at the financial year end date.

Some of the assets and cash (excluding forward foreign exchange contracts and loans to subsidiary) of the Funds are held bythe Depositary, State Street Custodial Services (Ireland) Limited. Bankruptcy or insolvency of the Depositary may cause theFunds’ rights with respect to securities held by the Depositary to be delayed or limited. The Funds monitor their risk by monitoringthe credit quality and financial positions of the Depositary the Funds use. The long-term credit rating of the parent company ofthe Depositary, State Street Corporation as at 31 December 2018 was A (31 December 2017: A). The Funds’ assets and cashare maintained within the Depositary’s custodial network in segregated accounts. The Depositary will ensure that any agent itappoints to assist in safekeeping the assets of the Funds will segregate these assets. Thus in the event of insolvency orbankruptcy of the Depositary, the Funds’ assets are segregated and protected and this further reduces counterparty risk.

All of the loans are held by Agent Banks. Bankruptcy or insolvency of an Agent Bank may cause the Funds’ rights with respectto assets held by the Agent Bank to be delayed or limited. The Funds monitor their risk by monitoring the credit quality andfinancial position of the Agent Banks it uses.

The Funds’ Investment Managers analyse credit concentration based on the counterparty, industry and geographical locationof the financial assets held by the Funds. At 31 December 2018, the Funds had exposure to counterparty risk through theforward foreign currency contracts. The Standard & Poor’s credit rating of State Street Corporation 31 December 2018 was A(31 December 2017: A). The Standard & Poor’s credit rating of National Australia Bank Limited as at 31 December 2018 wasAA- (31 December 2017: AA-).

Liquidity risk

Liquidity risk is the risk that the Funds will encounter difficulty in meeting obligations arising from its financial liabilities that aresettled by delivering cash or another financial asset, or that such obligations will have to be settled in a manner that isdisadvantageous to the Funds.

The Funds’ constitutional documentation makes provision for a range of measures to assist with the management of liquidity onan on-going basis, including, for example, the deferral of redemption applications. The Funds are typically managed with asmall ‘buffer’ of cash (to minimise the cash drag impact on returns for investors).

Barings

Global

Loan Fund

US$

9,363,009,926111,624,810

8,316855,762

-––––––––––––––

9,475,498,814––––––––––––––––––––––––––––

Barings

European

Loan Fund

€

6,054,632,113914,254

-61,004,181

-––––––––––––––

6,116,550,548––––––––––––––––––––––––––––

Mezzanine

Loan Fund 1

€

38,117,566----

––––––––––––––38,117,566

––––––––––––––––––––––––––––

Barings

Global High Yield

Strategies

Fund

€

56,065,964---

179,855––––––––––––––

56,245,819––––––––––––––––––––––––––––

Barings

Global Special

Situations

Credit Fund 1

US$

11,023,593----

––––––––––––––11,023,593

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 1

GBP£

197,543,969-

––––––––––––––197,543,969

––––––––––––––––––––––––––––

Global

Multi-Credit

Strategy

Fund 2

US$

311,515,833-

––––––––––––––311,515,833

––––––––––––––––––––––––––––

European

Loan

Strategy

Fund 1

€

282,142,289-

––––––––––––––282,142,289

––––––––––––––––––––––––––––

Barings

Global Loan

and High Yield

Bond Fund

US$

293,166,17410,958,690

––––––––––––––304,124,864

––––––––––––––––––––––––––––





Liquidity risk (continued)

There are revolving credit facilities in place between a number of the Subsidiaries and State Street Bank and Trust Company,RBC Bank, ScotiaBank and National Australia Bank Limited whereby subject to the terms of the agreement, the Subsidiariesmay borrow for short-term liquidity purposes. The main purpose of these credit facilities is to enable the Company to financeredemption requests and hedging requirements at short notice. These credit facilities were not used during the financial yearended 31 December 2018 or 31 December 2017. Please refer to the financial statements of the subsidiaries for details of therevolving credit facilities.

Details of the revolving credit facilities are outlined in Note 17.

The tables below set out the liquidity risk of the Funds at 31 December 2018. They provide an analysis of the Funds’ financialliabilities into relevant maturity groupings based on the remaining period at the year end date to the contractual maturity date.The amounts in the table are the contractual undiscounted cash flows. Please refer to the schedule of investments for thecontractual inflows and outflows of the derivative instruments in the below tables.

Barings Global Loan Fund Less than 1 Greater than

month 1-3 months 3 months Total

Liabilities US$ US$ US$ US$

Payable for fund shares repurchased (3,955,582) - - (3,955,582)Other payables and accrued expenses (3,837,141) - - (3,837,141)Net assets attributable to holders of redeemable shares - (7,938,248,676) - (7,938,248,676)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (7,792,723) (7,938,248,676) - (7,946,041,399)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Barings European Loan Fund Less than 1 Greater than


Liabilities € € € €

Payable for fund shares redeemed (15,051,446) - - (15,051,446)Other payables and accrued expenses (2,972,226) - - (2,972,226)Net assets attributable to holders of redeemable shares - (5,288,064,055) - (5,288,064,055)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (18,023,672) (5,288,064,055) - (5,306,087,727)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Mezzanine Loan Fund 1 Less than 1 Greater than



Other payables and accrued expenses (10,576) - - (10,576)Net assets attributable to holders of redeemable shares - (12,887,163) - (12,887,163)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (10,576) (12,887,163) - (12,897,739)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Barings Global High Yield Strategies Fund Less than 1 Greater than




–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (152,628) (39,199,040) - (39,351,668)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––






Barings Global Special Situations Credit Fund 1 Less than 1 Greater than




–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (22,571) (9,587,047) - (9,609,618)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Global Multi-Credit Strategy Fund 1 Less than 1 Greater than


Liabilities GBP£ GBP£ GBP£ GBP£


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (91,674) (190,829,281) - (190,920,955)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––




Income distribution payable (4,856,223) - - (4,856,223)Other payables and accrued expenses (154,886) - - (154,886)Net assets attributable to holders of redeemable shares - (287,499,084) - (287,499,084)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (5,011,109) (287,499,084) - (292,510,193)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

European Loan Strategy Fund 1 Less than 1 Greater than




–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (3,007,223) (294,115,817) - (297,123,040)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Barings Global Loan and High Yield Bond Fund Less than 1 Greater than




–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (213,545) (195,748,993) - (195,962,538)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––






Barings U.S. Loan Fund* Less than 1 Greater than



Income distribution payable (2,280,952) - - (2,280,952)Other payables and accrued expenses (1,625,204) - - (1,625,204)Net assets attributable to holders of redeemable shares - (1,259,688,789) - (1,259,688,789)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (3,906,156) (1,259,688,789) - (1,263,594,945)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––


The tables below set out the Funds’ gross-settled derivative financial instruments at 31 December 2018. The forward foreignexchange contracts held are for share class hedging purposes.



US$ US$ US$ US$

Asset - Forward foreign exchange contracts 5,915,468,362 - - 5,915,468,362Liability - Forward foreign exchange contracts (5,948,519,816) - - (5,948,519,816)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––(33,051,454) - - (33,051,454)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––



€ € € €


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––(7,263,550) - - (7,263,550)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––



€ € € €

Asset - Forward foreign exchange contracts 208,372,378 - - 208,372,378Liability - Forward foreign exchange contracts (213,277,645) - - (213,277,645)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––(4,905,267) - - (4,905,267)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Barings U.S. Loan Fund* Less than 1 Greater than


US$ US$ US$ US$


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––9,939,560 - - 9,939,560

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––







The tables below set out the liquidity risk of the Funds at 31 December 2017. They provide an analysis of the Funds’ financialliabilities into relevant maturity groupings based on the remaining period at the year end date to the contractual maturity date.The amounts in the table are the contractual undiscounted cash flows. Please refer to the Schedule of Investments for thecontractual inflows and outflows of the derivative instruments in the below tables.




Payable for fund shares repurchased (1,385,146) - - (1,385,146)Other payables and accrued expenses (4,474,025) - - (4,474,025)Net assets attributable to holders of redeemable shares - (9,468,548,377) - (9,468,548,377)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (5,859,171) (9,468,548,377) - (9,474,407,548)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––




Payable for fund shares redeemed (5,173,136) - - (5,173,136)Other payables and accrued expenses (3,362,079) - - (3,362,079)Net assets attributable to holders of redeemable shares - (6,085,941,322) - (6,085,941,322)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (8,535,215) (6,085,941,322) - (6,094,476,537)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Mezzanine Loan Fund 1 Less than 1 Greater than




–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (34,378) (38,083,188) - (38,117,566)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Barings Global High Yield Strategies Fund Less than 1 Greater than




–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (196,576) (56,049,243) - (56,245,819)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

Barings Global Special Situations Credit Fund 1 Less than 1 Greater than




–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (17,679) (11,005,914) - (11,023,593)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––








Liabilities GBP£ GBP£ GBP£ GBP£


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (97,332) (197,446,637) - (197,543,969)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––





–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (4,824,739) (306,691,094) - (311,515,833)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––





–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (3,019,398) (277,921,175) - (280,940,573)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––




Income distribution payable - - - -Other payables and accrued expenses (306,254) - - (306,254)Net assets attributable to holders of redeemable shares - (303,655,582) - (303,655,582)

–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––Total (306,254) (303,655,582) - (303,961,836)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

The tables below set out the Funds’ gross-settled derivative financial instruments at 31 December 2017. The forward foreignexchange contracts held are for share class hedging purposes.



US$ US$ US$ US$


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––110,533,544 - - 110,533,544

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––








€ € € €


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––(21,159,757) - - (21,159,757)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––



€ € € €


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––(1,201,716) - - (1,201,716)

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––



€ € € €


–––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––10,795,662 - - 10,795,662

–––––––––––––– –––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– –––––––––––––– ––––––––––––––

11. Interests in other entities

Interests in Unconsolidated Structured Entities

IFRS 12 “Disclosure of Interests in Other Entities” defines a structured entity as an entity that has been designed so that votingor similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to theadministrative tasks only and the relevant activities are directed by means of contractual agreements. A structured entity oftenhas some of the following features or attributes:

• restricted activities;• a narrow and well defined objective;• insufficient equity to permit the structured entity to finance its activities without subordinated financial support; and• financing in the form of multiple contractually linked instruments that create concentrations of credit or other risks.

Involvement with Unconsolidated Structured Entities

Investment entityTo adopt the amendment to IFRS 10 and to be exempt from preparing consolidated financial statements, the Company mustmeet the definition of an investment entity. The Company is satisfied that it meets both the required criteria and typicalcharacteristics of an investment entity as specified in Note 2.

SubsidiaryAs at 31 December 2018, the company had nine Subsidiaries, which are unconsolidated structured entities, the percentageproportion of ownership which is shown in Note 4. As detailed in Note 2, the Company has determined that the Subsidiariescontinue to meet the definition of a subsidiary under the provisions of IFRS 10. Subsidiaries are entities under the Company’scontrol. The Company controls an entity when it is exposed to, or has rights to, variable returns from its involvement with theentity and has the ability to affect those returns through power over the entity which is the case in this instance.

Therefore each Subsidiary is treated as a simple investment and is measured at fair value through profit or loss.




11. Interests in other entities (continued)

Involvement with Unconsolidated Structured Entities (continued)

Below is a summary of the Company’s holdings in subsidiary unconsolidated structured entities as at 31 December 2018:


% of Total

Financial

Assets at

Barings’s Fair Value Maximum

Holding through exposure

Line item in Statement No of Size of SEs Fair Value Profit or to losses

Structured Entity (“SE”) of Financial Position Investments in US$m in US$m Loss in US$m

Barings Global Financial assets at fairLoan Limited value through profit or loss 1 8,338 7,979 100.00 7,979


% of Total

Financial

Assets at




Structured Entity (“SE”) of Financial Position Investments in €m in €m Loss in €m

Barings European Financial assets at fairLoan Limited value through profit or loss 1 5,448 5,313 100.00 5,313


% of Total

Financial

Assets at


Line item in Statement Holding through exposure

of Financial No of Size of SEs Fair Value Profit or to losses

Structured Entity (“SE”) Position Investments in €m in €m Loss in €m

Barings Financial assets at fairMezzanine Loan 1 Limited value through profit or loss 1 13 13 100.00 13


% of Total

Financial

Assets at





Barings Global Financial assets at fairHigh Yield Bond Fund value through profit or loss 1 1,058 21 52.52 21

Barings Global Financial assets at fairLoan Fund value through profit or loss 1 7,938 5 13.13 5

Barings Global Financial assets at fairSenior Secured Bond Fund value through profit or loss 1 299 13 34.35 13









% of Total

Financial

Assets at




Structured Entity (“SE”) Position Investments in US$m in US$m Loss in US$m

Barings Global Special Financial assets at fairSituations Credit 1 Limited value through profit or loss 1 10 10 100.00 10


% of Total

Financial

Assets at




Structured Entity (“SE”) Position Investments in GBP£m in GBP£m Loss in GBP£m

Barings Global Multi-Credit Financial assets at fairStrategy 1 Limited value through profit or loss 1 200 191 100.00 191


% of Total

Financial

Assets at







% of Total

Financial

Assets at





Barings European Financial assets at fairLoan Strategy 1 Limited value through profit or loss 1 276 272 100.00 272







% of Total

Financial

Assets at




Structured Entity (“SE”) Position Investments US$m US$m Loss US$m

Barings Global Loan Financial assets at fairand High Yield Bond Limited value through profit or loss 1 208 201 100.00 201


% of Total

Financial

Assets at





Barings U.S. Loan Limited Financial assets at fairvalue through profit or loss 1 1,313 1,254 100.00 1,254


Below is a summary of the Company’s holdings in subsidiary unconsolidated structured entities as at 31 December 2017:


% of Total

Financial

Assets at




Structured Entity (“SE”) of Financial Position Investments in US$m in US$m Loss in US$m

Barings Global Financial assets at fairLoan Limited value through profit or loss 1 9,778 9,363 100.00 9,363


% of Total

Financial

Assets at





Barings European Financial assets at fairLoan Limited value through profit or loss 1 6,574 6,055 100.00 6,055







% of Total

Financial

Assets at





Barings Financial assets at fairMezzanine Loan 1 Limited value through profit or loss 1 38 38 100.00 38


% of Total

Financial

Assets at





Barings Global Financial assets at fairHigh Yield Bond Fund value through profit or loss 1 652 32 57.16 32

Barings Global Financial assets at fairLoan Fund value through profit or loss 1 8,328 9 16.70 9

Barings Global Financial assets at fairSenior Secured Bond Fund value through profit or loss 1 211 15 26.14 15


% of Total

Financial

Assets at





Barings Global Special Financial assets at fairSituations Credit 1 Limited value through profit or loss 1 11 11 100.00 11





% of Total

Financial

Assets at




Structured Entity (“SE”) Position Investments in GBP£m in GBP£m Loss in GBP£m



% of Total

Financial

Assets at







% of Total

Financial

Assets at





Barings European Financial assets at fairLoan Strategy 1 Limited value through profit or loss 1 300 282 100.00 282


% of Total

Financial

Assets at





Barings Global Loan Financial assets at fairand High Yield Bond Limited value through profit or loss 1 301 293 100.00 293






12. NAV per redeemable share

The following tables detail the NAV of each tranche in each Fund as at 31 December 2018, 31 December 2017 and 31December 2016:Barings Global Loan Fund US$ NAV US$ NAV US$ NAV

31 Dec 2018 31 Dec 2017 31 Dec 2016Class A EUR Distribution Shares 334,806,157 358,270,708 304,451,815Class A GBP Accumulation Shares 319,579,240 395,790,684 445,055,495Class A GBP Distribution Shares 226,193,446 249,265,915 227,567,671Class A USD Accumulation Shares 83,047,588 89,769,116 86,307,716Class A USD Distribution Shares 383,898,402 399,238,637 398,315,477Class B CAD Accumulation Shares 334,011 363,800 327,824Class B CHF Accumulation Shares 662,388,596 537,329,443 379,548,298Class B CHF Distribution Shares 2,001,878 2,068,346 1,979,997Class B EUR Accumulation Shares 519,464,750 545,144,888 451,984,296Class B EUR Distribution Shares 9,621,542 131,063,690 159,217,066Class B GBP Accumulation Shares 619,414,654 616,286,124 601,889,782Class B GBP Distribution Shares 432,126,290 278,885,100 158,172,562Class B SEK Accumulation Shares 11,335,638 12,537,197 -Class B USD Accumulation Shares 1,215,904,189 1,655,825,085 1,237,010,084Class B USD Distribution Shares 596,968,480 701,735,247 570,655,912Class C AUD Distribution Shares 1,337,134,525 1,932,502,956 1,883,744,677Class C CHF Accumulation Shares 55,732,031 69,542,830 32,482,646Class C CHF Distribution Shares 9,758,536 10,248,705 -Class C EUR Accumulation Shares 125,304,478 114,469,825 73,115,460Class C EUR Distribution Shares 25,394,722 27,242,465 22,916,433Class C GBP Accumulation Shares 352,970,879 630,020,839 271,088,454Class C GBP Distribution Shares 98,089,469 144,915,866 115,171,452Class C SEK Accumulation Shares 43,718,750 1,301,186 12,196,824Class C USD Accumulation Shares 151,760,946 133,607,922 167,292,299Class C USD Distribution Shares 35,825,708 37,256,857 25,204,240Class D CHF Accumulation Shares 9,442,162 8,296,544 4,827,707Class D CHF Distribution Shares - - 295,391Class D DKK Accumulation Shares 639,878 868,662 1,350,953Class D EUR Accumulation Shares 17,434,393 13,613,851 3,781,562Class D EUR Distribution Shares 13,056,718 14,163,875 11,540,451Class D GBP Distribution Shares 7,357,388 14,915,076 4,981,341Class D NOK Accumulation Shares 10,776,297 20,747,354 16,677,915Class D SEK Accumulation Shares 66,951,209 60,362,049 42,861,057Class D SEK Distribution Shares 2,861,007 5,567,384 3,560,721Class D USD Accumulation Shares 40,329,580 63,381,317 43,725,168Class D USD Distribution Shares 39,096,350 43,784,202 3,816,751Class E AUD Accumulation Shares 621,535 112,085 99,335Class E GBP Accumulation Shares** - 260,980 -Class E CAD Distribution Shares 778,909 641,366 599,334Class E CHF Accumulation Shares 3,589,422 2,718,096 -Class E EUR Accumulation Shares 8,453,213 722,824 203,282Class E EUR Distribution Shares - - 420,667Class E GBP Accumulating Shares* 1,737,920 - -Class E GBP Distribution Shares* 287,805 - -Class E SGD Accumulation Shares 3,265,305 1,561,113 382,578Class E SGD Distribution Shares 106,506 112,973 -Class E USD Accumulation Shares 20,993,234 20,816,799 109,255Class E USD Distribution Shares 10,244,256 7,076,867 307,516Class F EUR Accumulation Shares 5,908,051 11,234,788 10,600,521Class F GBP Accumulation Shares 583,238 622,413 548,003Class F USD Accumulation Shares 1,795,012 1,777,959 1,694,727Class G USD Accumulation Shares* 9,463,964 - -Class G USD Distribution Shares* 9,698,742 - -Class N USD Distribution Shares** - 100,504,704 100,278,487Class S USD Accumulation Shares 1,677 1,665 1,590

–––––––––––––– –––––––––––––– ––––––––––––––7,938,248,676 9,468,548,377 7,878,360,792

–––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– ––––––––––––––



12. NAV per redeemable share (continued)

Barings European Loan Fund € NAV € NAV € NAV

31 Dec 2018 31 Dec 2017 31 Dec 2016

Class A AUD Accumulating Shares 842,227 760,678 748,238Class A CHF Accumulating Shares 82,726,470 60,509,340 66,732,360Class A CHF Distribution Shares 2,311,439 1,625,740 1,173,029Class A DKK Distribution Shares 259,261 431,394 694,902Class A EUR Accumulating Shares 485,475,324 762,932,750 566,193,674Class A EUR Distribution Shares 337,324,242 468,073,197 345,063,807Class A GBP Accumulating Shares 102,175,973 132,690,784 326,495,969Class A GBP Distribution Shares 9,503,868 10,475,596 6,678,853Class A JPY Accumulating Shares 10,157,459 18,967,792 -Class A JPY Distribution Shares* 15,372,664 - -Class A SEK Accumulation Shares* 29,100,025 - -Class A SGD Accumulating Shares 98,734 94,235 93,396Class A USD Accumulating Shares 237,060,053 305,395,652 301,478,242Class A USD Distribution Shares 76,832,677 80,199,494 71,866,486Class B CHF Accumulation Shares* 36,708,294 - -Class B EUR Accumulating Shares 2,290,112,115 2,569,988,348 1,642,253,300Class B EUR Distribution Shares 332,329,393 192,844,621 62,250,052Class B GBP Accumulating Shares 29,548,483 25,546,506 7,758,587Class B GBP Distribution Shares 5,425,143 5,873,267 3,067,055Class B NOK Accumulating Shares 87,153,647 79,276,228 74,386,154Class B NOK Distribution Shares 10,274,133 10,857,120 11,863,425Class B USD Accumulating Shares 249,024,037 310,539,252 164,249,160Class B USD Distribution Shares 93,604,092 105,151,900 152,141,662Class C AUD Distribution Shares 770,467 1,743,870 1,568,493Class C CAD Accumulating Shares 1,838,957 1,872,227 2,162,635Class C CAD Distribution Shares 6,436,108 7,525,210 7,855,088Class C CHF Accumulating Shares 7,319,672 8,289,183 5,307,744Class C CHF Distribution Shares 1,974,441 1,289,975 752,585Class C EUR Accumulating Shares 177,508,873 349,201,788 253,919,483Class C EUR Distribution Shares 24,563,440 21,884,832 10,623,407Class C GBP Accumulating Shares 1,250,259 3,024,246 3,542,931Class C NOK Accumulating Shares 1,517,788 1,508,381 918,734Class C SEK Accumulating Shares 683,006 593,520 417,281Class C SGD Accumulating Shares 532,524 515,978 336,237Class C SGD Distribution Shares 1,820,773 1,778,668 1,638,324Class C USD Accumulating Shares 138,726,333 116,409,742 53,275,058Class C USD Distribution Shares 87,341,582 70,284,160 60,075,997Class E AUD Accumulating Shares 2,692,533 2,408,124 1,794,982Class E AUD Distribution Shares 11,267,017 8,685,923 4,082,023Class E CAD Accumulating Shares 3,374,302 4,056,894 4,051,490Class E CAD Distribution Shares 3,162,829 2,262,597 3,150,785Class E CHF Accumulating Shares 216,292 210,311 9,821Class E CHF Distribution Shares 860,926 1,041,168 187,083Class E EUR Accumulating Shares 57,023,426 57,594,084 45,807,522Class E EUR Distribution Shares 25,217,945 32,953,801 21,326,376Class E GBP Accumulating Shares 4,284,704 4,691,819 4,310,080Class E GBP Distribution Shares 2,228,259 1,641,556 1,894,794Class E SGD Accumulating Shares 3,502,020 4,200,987 4,470,139Class E SGD Distribution Shares 5,622,004 5,820,643 6,045,408Class E USD Accumulating Shares 94,002,799 120,012,666 133,074,899Class E USD Distribution Shares 98,905,023 112,205,075 90,313,291

–––––––––––––– –––––––––––––– ––––––––––––––5,288,064,055 6,085,941,322 4,528,101,041

–––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– ––––––––––––––






Mezzanine Loan Fund 1 € NAV € NAV € NAV

31 Dec 2018 31 Dec 2017 31 Dec 2016

Class A EUR Distribution Shares 12,887,163 38,083,188 33,012,472–––––––––––––– –––––––––––––– ––––––––––––––

12,887,163 38,083,188 33,012,472–––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– ––––––––––––––

Barings Global High Yield Strategies Fund € NAV € NAV € NAV

31 Dec 2018 31 Dec 2017 31 Dec 2016

Class S EUR Accumulation Shares 39,199,040 56,049,243 72,656,650–––––––––––––– –––––––––––––– ––––––––––––––

39,199,040 56,049,243 72,656,650–––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– ––––––––––––––

Barings Global Special Situations Credit Fund 1 US$ NAV US$ NAV US$ NAV

31 Dec 2018 31 Dec 2017 31 Dec 2016

Class M USD Distribution Shares 128,069 146,119 375,529Class N USD Distribution Shares 1,509,723 1,745,058 4,513,252Class S USD Distribution Shares 7,949,255 9,114,737 23,545,523

–––––––––––––– –––––––––––––– ––––––––––––––9,587,047 11,005,914 28,434,304

–––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– ––––––––––––––

Global Multi-Credit Strategy Fund 1 GBP£ NAV GBP£ NAV GBP£ NAV

31 Dec 2018 31 Dec 2017 31 Dec 2016

Class Q GBP Distribution Shares 190,814,955 197,446,637 129,145,201–––––––––––––– –––––––––––––– ––––––––––––––

190,814,955 197,446,637 129,145,201–––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– ––––––––––––––

Global Multi-Credit Strategy Fund 2 US$ NAV US$ NAV US$ NAV

31 Dec 2018 31 Dec 2017 31 Dec 2016

Class A USD Distribution Shares 287,313,024 306,691,094 301,904,656–––––––––––––– –––––––––––––– ––––––––––––––

287,313,024 306,691,094 301,904,656–––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– ––––––––––––––

European Loan Strategy Fund 1 € NAV € NAV € NAV

31 Dec 2018 31 Dec 2017 31 Dec 2016

Class U EUR Accumulation Shares - - 137,971,439Class U EUR Distribution Shares* 294,115,817 164,507,047 -Class U GBP Distribution Shares** - 113,414,128 117,812,293

–––––––––––––– –––––––––––––– ––––––––––––––294,115,817 277,921,175 255,783,732

–––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– ––––––––––––––

Barings Global Loan and High Yield Bond Fund US$ NAV US$ NAV US$ NAV

31 Dec 2018 31 Dec 2017 31 Dec 2016

Class E AUD Distribution Shares 195,639,018 303,604,253 -Class F USD Accumulation Shares 50,750 51,329 -

–––––––––––––– –––––––––––––– ––––––––––––––195,689,768 303,655,582 -

–––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– ––––––––––––––

***These share classes launched during the financial year ended 31 December 2018.***These share classes terminated during the financial year ended 31 December 2018.







Barings U.S. Loan Fund** US$ NAV US$ NAV US$ NAV

31 Dec 2018 31 Dec 2017 31 Dec 2016

Class A CHF Accumulating Shares* 3,821,998 - -Class A CHF Distributing Shares* 720,045 - -Class A EUR Accumulating Shares* 14,996,466 - -Class A GBP Accumulating Shares* 1,389,696 - -Class A JPY Accumulation Shares* 164,764,773 - -Class A JPY Distribution Shares* 4,327,461 - -Class A USD Accumulation Shares* 331,146,189 - -Class A USD Distribution Shares* 442,990,766 - -Class B JPY Distribution Shares* 294,680,585 - -Class F USD Accumulation Shares* 732,618 - -Class F USD Distribution Shares* 118,192 - -

–––––––––––––– –––––––––––––– ––––––––––––––1,259,688,789 - -

–––––––––––––– –––––––––––––– –––––––––––––––––––––––––––– –––––––––––––– ––––––––––––––

**These share classes launched during the financial year ended 31 December 2018.**This Fund launched on 31 August 2018.



The following tables detail the NAV per share of each Fund as at 31 December 2018, 31 December 2017 and 31 December2016. For information purposes, the published NAV as at 31 December 2018, 31 December 2017 and 31 December 2016 isalso detailed below. The difference between the NAV per the financial statements (“FS”) and the published NAV is due toadjustments required to conform to the principles of IFRS.

Barings Global Loan Fund Launch NAV per Published NAV per Published NAV per Publisheddate FS NAV FS NAV FS NAV

31 Dec 2018 31 Dec 2018 31 Dec 2017 31 Dec 2017 31 Dec 2016 31 Dec 2016Class A EUR Distribution Shares 31.08.12 €99.74 €99.74 €103.83 €103.83 €103.83 €103.83Class A GBP Accumulation Shares 31.03.11 GBP£137.54 GBP£137.54 GBP£139.09 GBP£139.09 GBP£134.68 GBP£134.68Class A GBP Distribution Shares 28.03.13 GBP£96.35 GBP£96.35 GBP£100.23 GBP£100.23 GBP£100.25 GBP£100.25Class A USD Accumulation Shares 28.02.12 US$141.68 US$141.68 US$140.90 US$140.90 US$134.84 US$134.84Class A USD Distribution Shares 31.05.13 US$97.13 US$97.13 US$101.01 US$101.01 US$100.78 US$100.78Class B CAD Accumulation Shares 12.10.16 CA$106.04 CA$106.04 CA$106.35 CA$106.35 CA$102.36 CA$102.36Class B CHF Accumulation Shares 28.03.13 CHF112.24 CHF112.24 CHF115.34 CHF115.34 CHF113.13 CHF113.13Class B CHF Distribution Shares 12.08.16 CHF96.79 CHF96.79 CHF100.78 CHF100.78 CHF100.81 CHF100.81Class B EUR Accumulation Shares 30.04.13 €114.32 €114.32 €116.93 €116.93 €114.17 €114.17Class B EUR Distribution Shares 28.07.14 €95.08 €95.08 €99.09 €99.09 €99.10 €99.10Class B GBP Accumulation Shares 30.04.12 GBP£131.24 GBP£131.24 GBP£132.81 GBP£132.81 GBP£128.70 GBP£128.70Class B GBP Distribution Shares 28.02.13 GBP£97.11 GBP£97.11 GBP£101.03 GBP£101.03 GBP£101.06 GBP£101.06Class B SEK Accumulation Shares 07.11.17 SEK97.59 SEK97.59 SEK99.90 SEK99.90 - -Class B USD Accumulation Shares 30.11.12 US$128.15 US$128.15 US$127.53 US$127.53 US$122.14 US$122.14Class B USD Distribution Shares 28.07.14 US$96.54 US$96.54 US$100.39 US$100.39 US$100.16 US$100.16Class C AUD Distribution Shares 28.10.11 AU$105.64 AU$105.64 AU$110.11 AU$110.11 AU$110.13 AU$110.13Class C CHF Accumulation Shares 31.10.12 CHF116.56 CHF116.56 CHF119.87 CHF119.87 CHF117.66 CHF117.66Class C CHF Distribution Shares 30.03.17 CHF95.92 CHF95.92 CHF99.87 CHF99.87 - -Class C EUR Accumulation Shares 31.01.12 €121.55 €121.55 €124.40 €124.40 €121.54 €121.54Class C EUR Distribution Shares 03.01.14 €92.05 €92.05 €95.84 €95.84 €95.84 €95.84Class C GBP Accumulation Shares 30.04.12 GBP£130.53 GBP£130.53 GBP£132.22 GBP£132.22 GBP£128.22 GBP£128.22Class C GBP Distribution Shares 24.06.13 GBP£97.47 GBP£97.47 GBP£101.39 GBP£101.39 GBP£101.43 GBP£101.43Class C SEK Accumulation Shares 28.02.14 SEK111.92 SEK111.92 SEK114.66 SEK114.66 SG$112.27 SG$112.27Class C USD Accumulation Shares 28.02.13 US$124.11 US$124.11 US$123.61 US$123.61 US$118.47 US$118.47Class C USD Distribution Shares 31.12.12 US$98.54 US$98.54 US$102.47 US$102.47 US$102.23 US$102.23Class D CHF Accumulation Shares 31.12.12 CHF114.25 CHF114.25 CHF117.59 CHF117.59 CHF115.55 CHF115.55Class D DKK Accumulation Shares 03.06.16 DKK103.47 DKK103.47 DKK106.21 DKK106.21 DKK104.09 DKK104.09Class D EUR Accumulation Shares 28.03.13 €114.17 €114.17 €116.98 €116.98 €114.42 €114.42Class D EUR Distribution Shares 02.12.13 €96.62 €96.62 €100.59 €100.59 €100.59 €100.59Class D GBP Distribution Shares 12.03.14 GBP£95.07 GBP£95.07 GBP£98.92 GBP£98.92 GBP£98.93 GBP£98.93Class D NOK Accumulation Shares 31.10.14 NOK113.24 NOK113.24 NOK114.51 NOK114.51 NOK110.63 NOK110.63Class D SEK Accumulation Shares 16.09.14 SEK106.32 SEK106.32 SEK109.02 SEK109.02 SEK106.84 SEK106.84Class D SEK Distribution Shares 16.09.13 SEK96.15 SEK96.15 SEK100.10 SEK100.10 SEK100.16 SEK100.16Class D USD Accumulation Shares 30.11.12 US$126.85 US$126.85 US$126.47 US$126.47 US$121.33 US$121.33Class D USD Distribution Shares 30.11.11 US$106.91 US$106.91 US$111.16 US$111.16 US$110.90 US$110.90Class E AUD Accumulation Shares 02.10.13 AU$124.88 AU$124.88 AU$125.20 AU$125.20 AU$119.97 AU$119.97Class E CAD Distribution Shares 14.03.14 CA$95.37 CA$95.37 CA$99.23 CA$99.23 CA$99.04 CA$99.04Class E CHF Accumulation Shares 25.02.14 CHF97.64 CHF97.64 CHF100.87 CHF100.87 - -Class E EUR Accumulation Shares 12.03.14 €106.74 €106.74 €109.73 €109.73 €107.66 €107.66Class E GBP Accumulation Shares 23.03.17 GBP£100.12 GBP£100.12 GBP£101.87 GBP£101.87 - -Class E GBP Distribution Shares* 23.01.18 GBP£96.18 GBP£96.18 - - - -Class E SGD Accumulation Shares 19.02.14 SG$114.14 SG$114.14 SG$115.06 SG$115.06 SG$111.19 SG$111.19Class E SGD Distribution Shares 06.02.17 SG$96.77 SG$96.77 SG$100.73 SG$100.73 - -Class E USD Accumulation Shares 25.11.13 US$115.63 US$115.63 US$115.68 US$115.68 US$111.39 US$111.39Class E USD Distribution Shares 25.02.14 US$98.81 US$98.81 US$102.75 US$102.75 US$102.51 US$102.51Class F EUR Accumulation Shares 30.04.12 €129.71 €129.71 €132.04 €132.04 €128.32 €128.32Class F GBP Accumulation Shares 28.02.13 GBP£124.63 GBP£124.63 GBP£125.56 GBP£125.56 GBP£121.11 GBP£121.11Class F USD Accumulation Shares 05.08.14 US$117.82 US$117.82 US$116.70 US$116.70 US$111.24 US$111.24Class G USD Accumulation Shares* 23.02.18 US$98.99 US$98.99 - - - -Class G USD Distribution Shares* 11.01.18 US$96.70 US$96.70 - - - -Class N USD Distribution Shares** 31.01.13 - - US$102.35 US$102.35 US$102.11 US$102.11Class S USD Accumulation Shares 17.09.10 US$154.20 US$154.20 US$153.09 US$153.09 US$146.17 US$146.17

**These share classes launched during the financial year ended 31 December 2018.**This share class terminated during the financial year ended 31 December 2018.





Barings European Loan Fund Launch NAV per Published NAV per Published NAV per Published

date FS NAV FS NAV FS NAV

31 Dec 2018 31 Dec 2018 31 Dec 2017 31 Dec 2017 31 Dec 2016 31 Dec 2016

Class A AUD Accumulation Shares 03.06.15 AU$119.99 AU$119.99 AU$116.98 AU$116.98 AU$109.14 AU$109.14Class A CHF Accumulation Shares 11.11.13 CHF118.47 CHF118.47 CHF119.09 CHF119.09 CHF114.36 CHF114.36Class A CHF Distribution Shares 21.01.16 CHF99.11 CHF99.11 CHF103.10 CHF103.10 CHF102.89 CHF102.89Class A DKK Distribution Shares 08.05.15 DK96.03 DK96.03 DKK99.93 DKK99.93 DKK99.78 DKK99.78Class A EUR Accumulation Shares 01.09.11 €149.16 €149.16 €149.20 €149.20 €142.62 €142.62Class A EUR Distribution Shares 01.09.11 €108.05 €108.05 €112.37 €112.37 €112.09 €112.09Class A GBP Accumulation Shares 28.09.12 GBP£140.34 GBP£140.34 GBP£138.95 GBP£138.95 GBP£131.82 GBP£131.82Class A GBP Distribution Shares 21.02.14 GBP£97.55 GBP£97.55 GBP£101.38 GBP£101.38 GBP£101.18 GBP£101.18Class A JPY Accumulation Shares 08.03.17 ¥103.23 ¥103.23 ¥103.08 ¥103.08 - -Class A JPY Distribution Shares* 10.09.18 ¥97.21 ¥97.21 - - - -Class A SEK Accumulation Shares* 14.08.18 SEK98.69 SEK98.69 - - - -Class A SGD Accumulation Shares 07.06.16 SG$113.03 SG$113.03 SG$110.86 SG$110.86 SG$104.37 SG$104.37Class A USD Accumulation Shares 28.02.13 US$137.23 US$137.23 US$133.60 US$133.60 US$125.33 US$125.33Class A USD Distribution Shares 09.10.13 US$99.46 US$99.46 US$103.41 US$103.41 US$102.95 US$102.95Class B CHF Accumulation Shares* 01.05.18 CHF98.44 CHF98.44 - - - -Class B EUR Accumulation Shares 31.01.12 €145.93 €145.93 €145.86 €145.86 €139.33 €139.33Class B EUR Distribution Shares 31.12.12 €101.61 €101.61 €105.72 €105.72 €105.46 €105.46Class B GBP Accumulation Shares 28.09.12 GBP£141.13 GBP£141.13 GBP£139.59 GBP£139.59 GBP£132.38 GBP£132.38Class B GBP Distribution Shares 01.10.15 GBP£98.07 GBP£98.07 GBP£101.94 GBP£101.94 GBP£101.74 GBP£101.74Class B NOK Accumulation Shares 24.08.15 NOK116.97 NOK116.97 NOK115.41 NOK115.41 NOK108.92 NOK108.92Class B NOK Distribution Shares 01.04.16 NOK99.46 NOK99.46 NOK103.52 NOK103.52 NOK103.39 NOK103.39Class B USD Accumulation Shares 28.09.15 US$119.12 US$119.12 US$115.89 US$115.89 US$108.64 US$108.64Class B USD Distribution Shares 02.01.15 US$99.21 US$99.21 US$103.20 US$103.20 US$102.75 US$102.75Class C AUD Distribution Shares 25.09.14 AU$98.70 AU$98.70 AU$102.83 AU$102.83 AU$102.64 AU$102.64Class C CAD Accumulation Shares 03.06.14 CA$124.51 CA$124.51 CA$122.23 CA$122.23 CA$115.33 CA$115.33Class C CAD Distribution Shares 30.06.14 CA$97.62 CA$97.62 CA$101.49 CA$101.49 CA$101.08 CA$101.08Class C CHF Accumulation Shares 15.01.14 CHF116.33 CHF116.33 CHF117.02 CHF117.02 CHF112.51 CHF112.51Class C CHF Distribution Shares 25.06.14 CHF96.74 CHF96.74 CHF100.64 CHF100.64 CHF100.43 CHF100.43Class C EUR Accumulation Shares 28.10.11 €147.10 €147.10 €147.29 €147.29 €140.93 €140.93Class C EUR Distribution Shares 28.02.13 €100.81 €100.81 €104.84 €104.84 €104.58 €104.58Class C GBP Accumulation Shares 15.01.14 GBP£123.84 GBP£123.84 GBP£122.72 GBP£122.72 GBP£116.57 GBP£116.57Class C NOK Accumulation Shares 29.09.16 NOK108.97 NOK108.97 NOK107.69 NOK107.69 NOK101.85 NOK101.85Class C SEK Accumulation Shares 07.06.16 SEK104.09 SEK104.09 SEK104.32 SEK104.32 SEK100.05 SEK100.05Class C SGD Accumulation Shares 27.05.14 SG$124.96 SG$124.96 SG$122.66 SG$122.66 SG$115.61 SG$115.61Class C SGD Distribution Shares 23.05.14 SG$98.14 SG$98.14 SG$102.07 SG$102.07 SG$101.71 SG$101.71Class C USD Accumulation Shares 31.05.13 US$133.23 US$133.23 US$129.85 US$129.85 US$121.91 US$121.91Class C USD Distribution Shares 27.05.14 US$98.50 US$98.50 US$102.37 US$102.37 US$101.91 US$101.91Class E AUD Accumulation Shares 12.06.14 AU$129.53 AU$129.53 AU$126.80 AU$126.80 AU$118.79 AU$118.79Class E AUD Distribution Shares 01.07.14 AU$97.91 AU$97.91 AU$102.01 AU$102.01 AU$101.76 AU$101.76Class E CAD Accumulation Shares 19.05.14 CA$123.10 CA$123.10 CA$121.17 CA$121.17 CA$114.68 CA$114.68Class E CAD Distribution Shares 14.10.14 CA$98.62 CA$98.62 CA$102.53 CA$102.53 CA$102.12 CA$102.12Class E CHF Accumulation Shares 08.01.14 CHF115.21 CHF115.21 CHF116.25 CHF116.25 CHF112.12 CHF112.12Class E CHF Distribution Shares 16.07.14 CHF96.90 CHF96.90 CHF100.79 CHF100.79 CHF100.57 CHF100.57Class E EUR Accumulation Shares 10.10.13 €118.58 €118.58 €119.09 €119.09 €114.29 €114.29Class E EUR Distribution Shares 14.04.14 €98.21 €98.21 €102.12 €102.12 €101.86 €101.86Class E GBP Accumulation Shares 30.06.14 GBP£119.21 GBP£119.21 GBP£118.47 GBP£118.47 GBP£112.84 GBP£112.84Class E GBP Distribution Shares 04.06.14 GBP£97.41 GBP£97.41 GBP£101.23 GBP£101.23 GBP£101.00 GBP£101.00Class E SGD Accumulation Shares 19.05.14 SG$123.71 SG$123.71 SG$121.80 SG$121.80 SG$115.12 SG$115.12Class E SGD Distribution Shares 23.05.14 SG$97.78 SG$97.78 SG$101.69 SG$101.69 SG$101.34 SG$101.34Class E USD Accumulation Shares 30.12.13 US$126.17 US$126.17 US$123.32 US$123.32 US$116.14 US$116.14Class E USD Distribution Shares 12.05.14 US$98.21 US$98.21 US$102.10 US$102.10 US$101.63 US$101.63

*These share classes launched during the financial year ended 31 December 2018.





Launch NAV per Published NAV per Published NAV per Published

date FS NAV FS NAV FS NAV

31 Dec 2018 31 Dec 2018 31 Dec 2017 31 Dec 2017 31 Dec 2016 31 Dec 2016


Class A EUR Distribution Shares 20.03.12 €67.61 €67.61 €64.82 €64.82 €72.14 €72.14

Barings Global High Yield

Strategies Fund

Class S EUR Accumulation Shares 30.04.12 €141.60 €141.60 €148.14 €148.14 €141.03 €141.03

Barings Global Special Situations

Credit Fund 1

Class M USD Distribution Shares 02.10.12 US$147.30 US$147.32 US$117.17 US$117.83 US$109.74 US$109.74Class N USD Distribution Shares 31.01.13 US$140.15 US$140.17 US$112.94 US$113.58 US$106.44 US$106.44Class S USD Distribution Shares 02.10.12 US$146.01 US$146.03 US$116.72 US$117.38 US$109.87 US$109.87


Class Q GBP Distribution Shares 28.02.14 GBP£88.45 GBP£88.46 GBP£97.19 GBP£97.19 GBP£96.67 GBP£96.67


Class A USD Distribution Shares 13.02.15 US$94.93 US$95.08 US$101.33 US$101.33 US$99.75 US$99.75


Class U EUR Accumulation Share 24.09.15 - - - - €107.17 €107.17Class U EUR Distribution Shares 13.10.17 €95.09 €95.09 €99.39 €99.39 - -Class U GBP Distribution Shares** 10.09.15 - - GBP£100.77 GBP£100.77 GBP£100.61 GBP£100.61

Barings Global Loan and High Yield Bond Limited

Class E AUD Distribution Shares 02.06.17 AU$93.66 AU$93.77 AU$100.91 AU$100.91 - -Class F USD Accumulation Shares 02.06.17 US$101.44 US$101.56 US$102.66 US$102.66 - -

Barings U.S. Loan Fund***

Class A CHF Accumulating Shares* 08.11.18 CHF95.65 CHF95.65 - - - -Class A CHF Distributing Shares* 08.11.18 CHF95.64 CHF95.64 - - - -Class A EUR Accumulating Shares* 08.11.18 €95.72 €95.72 - - - -Class A GBP Accumulating Shares* 08.11.18 GBP£95.89 GBP£95.89 - - - -Class A JPY Accumulation Shares* 31.08.18 ¥95.87 ¥95.87 - - - -Class A JPY Distribution Shares* 31.08.18 ¥94.96 ¥94.96 - - - -Class A USD Accumulation Shares* 31.08.18 US$ 96.85 US$96.85 - - - -Class A USD Distribution Shares* 31.08.18 US$95.34 US$95.34 - - - -Class B JPY Distribution Shares* 31.08.18 ¥94.94 ¥94.94 - - - -Class F USD Accumulation Shares* 31.08.18 US$96.95 US$96.96 - - - -Class F USD Distribution Shares* 31.08.18 US$95.35 US$95.35 - - - -

***These share classes launched during the financial year ended 31 December 2018.***This share class terminated during the financial year ended 31 December 2018.***This Fund launched on 31 August 2018.




13. Distribution costs

The following distributions were declared by the Funds during the financial year ended 31 December 2018.


31 December 2017 31 March 2018 30 June 2018 30 September 2018

Per Per Per Per Total

Value Share Value Share Value Share Value Share Value

US$ US$ US$ US$ US$ US$ US$ US$ US$

A EUR Class 1,603,704 0.56 1,269,891 0.44 1,785,162 0.62 1,929,175 0.66 6,587,932A GBP Class 1,712,431 0.93 1,509,014 0.82 1,859,549 1.01 1,933,620 1.05 7,014,614A USD Class 4,072,684 1.03 4,047,833 1.02 4,759,086 1.20 4,910,746 1.24 17,790,349B CHF Class 6,515 0.33 4,658 0.23 7,380 0.37 8,389 0.41 26,942B EUR Class 561,626 0.51 439,089 0.40 623,732 0.57 54,862 0.61 1,679,309B GBP Class 1,862,618 0.91 2,509,965 0.80 3,179,350 0.99 3,606,312 1.03 11,158,245B USD Class 7,024,391 1.00 7,054,739 1.00 8,311,393 1.18 7,665,703 1.22 30,056,226C AUD Class 20,683,945 0.92 19,282,225 0.85 19,688,056 0.92 16,301,700 0.93 75,955,926C CHF Class 30,324 0.30 21,188 0.21 34,664 0.35 39,247 0.39 125,423C EUR Class 111,532 0.47 86,362 0.36 125,525 0.53 136,416 0.57 459,835C GBP Class 940,172 0.89 793,493 0.78 992,816 0.97 925,880 1.01 3,652,361C USD Class 365,823 1.01 364,258 1.00 430,055 1.18 444,276 1.22 1,604,412D EUR Class 54,379 0.46 41,422 0.35 61,650 0.52 67,024 0.57 224,475D GBP Class 92,964 0.83 80,946 0.72 102,104 0.91 106,678 0.96 382,692D SEK Class 19,657 0.04 15,722 0.03 20,583 0.04 22,943 0.05 78,905D USD Class 418,758 1.03 462,744 1.06 551,434 1.26 595,870 1.30 2,028,806E CAD Class 4,920 0.61 5,977 0.54 7,108 0.64 7,575 0.68 25,580E GBP Class - - 1,443 0.61 1,899 0.81 2,000 0.85 5,342E SGD Class 871 0.58 824 0.55 928 0.62 969 0.65 3,592E USD Class 61,373 0.89 32,878 0.89 44,067 1.07 78,960 1.11 217,278G USD Class - - 28,594 0.81 116,328 0.98 104,276 1.02 249,198N USD Class 1,006,122 1.02 1,000,883 1.02 - - - - 2,007,005

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––Total 40,634,809 39,054,148 42,702,869 38,942,621 161,334,447

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––




13. Distribution costs (continued)





€ € € € € € € € €

A CHF Class 12,865 0.70 19,854 0.69 23,677 0.84 20,828 0.80 77,224A DKK Class 3,733 0.12 3,747 0.12 4,443 0.14 2,629 0.13 14,552A EUR Class 4,267,084 1.02 4,262,845 1.01 4,063,839 1.17 3,940,967 1.12 16,534,735A GBP Class 120,788 1.32 119,583 1.32 134,129 1.49 128,057 1.42 502,557A JPY Class - - - - - - 160,166 0.01 160,166A USD Class 1,195,150 1.28 1,324,004 1.33 1,422,725 1.54 1,357,573 1.49 5,299,452B EUR Class 1,794,876 0.98 2,292,203 1.02 2,569,728 1.12 3,501,285 1.07 10,158,092B GBP Class 68,844 1.34 65,796 1.34 75,648 1.52 72,141 1.45 282,429B NOK Class 134,260 0.13 138,487 0.14 158,721 0.16 153,609 0.15 585,077B USD Class 1,587,090 1.30 1,633,242 1.39 1,693,888 1.55 1,636,692 1.51 6,550,912C AUD Class 27,179 1.04 26,471 1.02 19,422 1.10 18,438 1.04 91,510C CAD Class 102,611 0.92 96,971 0.88 110,162 1.00 108,708 0.99 418,452C CHF Class 9,879 0.66 12,037 0.65 14,272 0.79 17,521 0.76 53,709C EUR Class 193,932 0.93 206,736 0.91 235,509 1.07 257,981 1.02 894,158C SGD Class 24,329 0.87 21,093 0.88 23,149 0.97 27,019 0.93 95,590C USD Class 1,029,482 1.25 1,098,516 1.29 1,464,813 1.50 1,478,531 1.46 5,071,342E AUD Class 128,733 0.98 138,130 0.96 159,346 1.04 188,431 0.98 614,640E CAD Class 29,123 0.88 36,631 0.85 38,706 0.96 47,616 0.95 152,076E CHF Class 7,178 0.59 6,554 0.59 8,831 0.73 8,440 0.70 31,003E EUR Class 266,830 0.83 282,345 0.82 262,377 0.97 238,289 0.91 1,049,841E GBP Class 17,255 1.20 17,323 1.20 25,980 1.38 30,985 1.31 91,543E SGD Class 75,167 0.82 77,124 0.83 90,078 0.91 81,364 0.88 323,733E USD Class 1,557,747 1.18 1,565,982 1.23 1,841,034 1.44 1,618,485 1.40 6,583,248

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––Total 12,654,135 13,445,674 14,440,477 15,095,755 55,636,041

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––


31 March 2018 30 June 2018 30 September 2018 31 December 2018



€ € € € € € € € €

A EUR Class - - 1,507,696 2.57 - - - - 1,507,696––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––

Total - 1,507,696 2.57 - - 1,507,696

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––









GBP£ GBP£ GBP£ GBP£ GBP£ GBP£ GBP£ GBP£ GBP£

Q GBP Class 2,546,713 1.25 3,076,994 1.50 3,051,163 1.46 3,056,862 1.44 11,731,732––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––

Total 2,546,713 3,076,994 3,051,163 3,056,862 11,731,732

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––






A USD Class 4,790,183 1.58 5,053,616 1.67 5,056,134 1.67 4,856,223 1.60 19,756,156––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––

Total 4,790,183 5,053,616 5,056,134 4,856,223 19,756,156

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––





€ € € € € € € € €

U EUR Class 1,535,033 0.93 2,584,804 0.92 2,959,141 1.05 2,845,664 1.01 9,924,642U GBP Class 1,337,068 1.34 - - - - - - 1,337,068

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––Total 2,872,101 2,584,804 2,959,141 2,845,664 11,261,710

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––






E AUD Class 3,901,861 1.01 3,530,427 0.90 3,779,775 0.95 3,610,566 0.90 14,822,629––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––

Total 3,901,861 3,530,427 3,779,775 3,610,566 14,822,629

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––






A JPY Class - - - - - - 41,980 0.01 41,980A USD Class - - - - - - 6,289,360 1.57 6,289,360B JPY Class - - - - - - 2,623,223 0.01 2,623,223F USD Class - - - - - - 2,073 1.67 2,073

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––Total - - - 8,956,636 8,956,636

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––

*This Fund launched on 31 August 2018. Distributions for this Fund prior to the restructure from Babson Capital Floating Rate Income Master Fund L.P. included capital*amounts. Distributions after 31 August 2018 were out of earnings.





The following distributions were declared by the Funds during the financial year ended 31 December 2017.






A EUR Class 1,963,441 0.70 2,020,067 0.70 1,930,800 0.66 2,211,589 0.76 8,125,897A GBP Class 1,983,558 1.08 1,899,569 1.03 1,777,266 0.96 1,922,342 1.04 7,582,735A USD Class 4,273,634 1.08 4,128,135 1.04 3,926,530 0.99 4,190,237 1.06 16,518,536B CHF Class 9,872 0.49 10,173 0.51 9,359 0.47 10,525 0.53 39,929B EUR Class 996,709 0.65 993,375 0.65 820,533 0.61 755,887 0.70 3,566,504B GBP Class 1,348,785 1.06 1,285,415 1.02 1,513,575 0.95 1,892,802 1.03 6,040,577B USD Class 6,014,843 1.06 5,823,125 1.02 4,781,978 0.97 7,182,237 1.03 23,802,183C AUD Class 24,223,695 1.02 24,710,987 1.02 20,517,970 0.94 21,550,226 0.97 91,002,878C CHF Class - - 48,562 0.49 44,431 0.44 50,222 0.50 143,215C EUR Class 139,126 0.61 140,470 0.61 133,843 0.57 154,227 0.65 567,666C GBP Class 960,330 1.04 1,104,460 1.00 1,136,134 0.93 1,233,714 1.00 4,434,638C USD Class 260,894 1.06 361,465 1.02 343,039 0.97 377,096 1.04 1,342,494D CHF Class 1,343 0.45 1,388 0.47 1,259 0.42 1,434 0.48 5,424D EUR Class 67,153 0.62 66,483 0.61 61,064 0.57 70,329 0.66 265,029D GBP Class 40,280 0.99 47,965 0.94 44,438 0.87 96,188 0.95 228,871D SEK Class 19,726 0.06 19,500 0.06 18,269 0.06 29,218 0.06 86,713D USD Class 38,546 1.12 162,168 1.08 170,732 1.02 214,901 1.10 586,347E CAD Class 5,089 0.63 4,819 0.59 4,385 0.54 4,835 0.60 19,128E EUR Class 2,077 0.52 8,270 0.52 7,362 0.47 6,458 0.55 24,167E SGD Class - - 454 0.30 822 0.55 915 0.61 2,191E USD Class 2,834 0.94 30,105 0.91 105,681 0.86 71,417 0.92 210,037N USD Class 1,056,958 1.08 1,020,722 1.04 969,801 0.99 1,036,126 1.06 4,083,607

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––Total 43,408,893 43,887,677 38,319,271 43,062,925 168,678,766

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––











€ € € € € € € € €

A CHF Class 12,155 0.99 13,086 0.92 14,265 0.82 15,294 0.85 54,800A DKK Class 8,009 0.15 5,889 0.14 5,340 0.13 5,737 0.14 24,975A EUR Class 4,034,786 1.31 4,142,290 1.20 4,039,360 1.09 4,635,166 1.17 16,851,602A GBP Class 93,274 1.65 101,143 1.49 97,726 1.33 115,571 1.38 407,714A USD Class 1,148,159 1.56 1,101,349 1.42 1,010,055 1.26 1,162,897 1.29 4,422,460B EUR Class 739,650 1.25 927,552 1.15 1,045,126 1.04 1,660,895 1.12 4,373,223B GBP Class 43,413 1.69 49,459 1.52 47,226 1.36 45,615 1.41 185,713B NOK Class 189,073 0.18 167,663 0.16 148,404 0.14 152,905 0.15 658,045B USD Class 2,459,420 1.58 1,692,323 1.44 1,503,325 1.28 1,596,126 1.31 7,251,194C AUD Class 28,724 1.29 24,922 1.23 21,688 1.07 28,018 1.07 103,352C CAD Class 118,035 1.07 108,273 0.97 95,056 0.85 100,381 0.90 421,745C CHF Class 7,608 0.95 8,354 0.88 8,551 0.78 12,156 0.81 36,669C EUR Class 121,540 1.20 127,760 1.09 144,816 0.99 169,287 1.07 563,403C SGD Class 24,899 1.01 26,593 0.95 20,028 0.83 22,798 0.88 94,318C USD Class 944,649 1.52 930,650 1.39 798,395 1.23 896,612 1.26 3,570,306E AUD Class 71,668 1.22 78,977 1.15 80,775 1.01 92,988 1.01 324,408E CAD Class 44,963 1.03 41,526 0.92 32,446 0.81 28,366 0.85 147,301E CHF Class 1,750 0.88 9,374 0.81 8,203 0.71 8,642 0.75 27,969E EUR Class 227,865 1.09 256,024 0.98 230,686 0.88 271,034 0.96 985,609E GBP Class 24,552 1.53 9,695 1.37 8,543 1.21 18,268 1.27 61,058E SGD Class 87,307 0.96 85,925 0.90 74,818 0.78 74,892 0.83 322,942E USD Class 1,351,815 1.45 1,610,221 1.31 1,398,696 1.16 1,508,605 1.19 5,869,337

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––Total 11,783,314 11,519,048 10,833,528 12,622,253 46,758,143

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––





€ € € € € € € € €

A EUR Class - - 580,673 0.99 - - - - 580,673––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––

Total - 580,673 - - 580,673

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––





GBP£ GBP£ GBP£ GBP£ GBP£ GBP£ GBP£ GBP£ GBP£

Q GBP Class 1,870,615 1.40 1,895,532 1.40 1,959,248 1.43 2,394,596 1.19 8,119,991––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––

Total 1,870,615 1,895,532 1,959,248 2,394,596 8,119,991

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––








A USD Class 4,973,568 1.64 5,044,194 1.67 5,951,494 1.97 4,661,638 1.54 20,630,894––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––

Total 4,973,568 5,044,194 5,951,494 4,661,638 20,630,894

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––





€ € € € € € € € €

U GBP Class 1,641,660 1.64 1,411,595 1.41 1,501,240 1.50 1,337,874 1.34 5,892,369U EUR Class - - - - - - 1,535,033 0.93 1,535,033

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––Total 1,641,660 1,411,595 1,501,240 2,872,907 7,427,402

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––

Barings Global Loan and High Yield Bond Fund*





E AUD Class - - - - 299,048 0.09 3,581,832 0.98 3,880,880––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––

Total - - 299,048 3,581,832 3,880,880

––––––––––– ––––––––––– ––––––––––– ––––––––––– –––––––––––

*This Fund launched on 2 June 2017.

14. Exchange rates

The following exchange rates were used to translate foreign currency amounts, investments and other assets and liabilitiesdenominated in currencies other than US$, GBP£ and €:

Against US$ Against GBP£ Against €

Currency 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017

AU$ 0.7043 0.7803 0.5526 0.5779 0.6148 0.6503CA$ 0.7325 0.7955 0.5747 0.5892 0.6393 0.6630CHF 1.0174 1.0262 0.7982 0.7601 0.8880 0.8553DKK 0.1535 0.1612 0.1204 0.1194 0.1339 0.1343€ 1.1457 1.1998 0.8989 0.8887 - -GBP£ 1.2746 1.3502 - - 1.1125 1.1253¥ 0.0091 0.0088 0.0072 0.0065 0.0080 0.0073NOK 0.1157 0.1218 0.0907 0.0902 0.1009 0.1015SEK 0.1128 0.1219 0.0885 0.0903 0.0985 0.1016SG$ 0.7337 0.7477 0.5756 0.5538 0.6404 0.6232US$ - - 0.7846 0.7407 0.8728 0.8334

The following average exchange rates (against US$) were used to convert the Statements of Comprehensive Income, theStatements of Changes in Net Assets and the Statements of Cash Flows for each US$1 as follows:

Currency 31 Dec 2018 31 Dec 2017

€ 0.8495 0.8795GBP£ 0.7527 0.7688




15. Cross liability

While the provisions of the Companies Act, 2014 provide for segregated liability between Funds, these provisions have yet tobe tested in foreign courts, in particular in satisfying local creditors’ claims. Accordingly, it is not free from doubt that the assetsof each Fund and Class may not be exposed to the liabilities of the other Funds and Classes within the Company. At 31December 2018 and 31 December 2017, the Directors are not aware of any such existing or contingent liability.

16. Prospectus

A revised Prospectus was issued on 29 June 2018 and 30 November 2018.

Revised Supplements to the Prospectus were issued for the following funds on 29 June 2018:Mezzanine Loan Fund 1Barings Global High Yield Strategies FundBarings Global Special Situations Credit Fund 1Global Multi-Credit Strategy Fund 1Global Multi-Credit Strategy Fund 2European Loan Strategy Fund 1

Revised Supplements to the Prospectus were issued for the following funds on 30 November 2018:Barings Global Loan FundBarings European Loan FundBarings Global Loan and High Yield Bond Fund

A new Supplement to the Prospectus was issued for Barings U.S. Loan Fund on 30 November 2018.

17. Revolving Credit Facilities

The Company has entered into the following revolving credit facilities with State Street Bank and Trust Company, RBC Bank,ScotiaBank and National Australia Bank Limited.

The borrowers in each case are the Subsidiaries of the Funds. The Funds guarantee the loans on behalf of their respectivesubsidiary. The credit facilities are multi-currency (US$, £, €). Borrowings are at 1.25% over the relevant index. There is acommitment fee of 0.25% per annum for Barings Global Multi-Credit Strategy 1 Limited and Barings Global Multi-Credit Strategy2 Limited, and 0.325% per annum for Barings Global Loan Limited and Barings European Loan Limited and 0.30% for BaringsU.S. Loan Fund, on the unused amount. These facilities were not used during the financial year ended 31 December 2018 or31 December 2017.

As at 31 December 2018 New amount

Effective

Old amount 5 December 2018

Borrower Guarantor US$ millions US$ millions

1) Barings Global Multi-Credit Strategy 1 Limited Global Multi-Credit Strategy Fund 1 18 182) Barings Global Multi-Credit Strategy 2 Limited Global Multi-Credit Strategy Fund 2 14 143) Barings Global Loan Limited Barings Global Loan Fund 420 4104) Barings European Loan Limited Barings European Loan Fund 350 2555) Barings U.S. Loan Limited Barings U.S. Loan Fund - 45

On 5 December 2018 facilities 1 and 2 above were renewed for one year with no changes. Facilities 3 and 4 were renewed anddecreased. Facility 5 is a new facility entered into during the year ended 31 December 2018.

As at 31 December 2017 New amount

Effective

Old amount 7 December 2017

Borrower Guarantor US$ millions US$ millions

1) Barings Global Multi-Credit Strategy 1 Limited Global Multi-Credit Strategy Fund 1 18 182) Barings Global Multi-Credit Strategy 2 Limited Global Multi-Credit Strategy Fund 2 14 143) Barings Global Loan Limited Barings Global Loan Fund 465 4204) Barings European Loan Limited Barings European Loan Fund 275 350

On 7 December 2017 facilities 1 and 2 above were renewed for one year with no changes. Facility 3 was renewed and decreasedand facility 4 was renewed and increased.




18. Contingent liabilities

There are no contingent liabilities as at 31 December 2018 or 31 December 2017.

19. Soft commissions

There were no soft commission arrangements entered into by the Investment Managers on behalf of the Company during thefinancial year ended 31 December 2018 and 31 December 2017.

20. Taxation

Under current Irish law and practice the Company qualifies as an investment undertaking under Section 739B of the TaxesConsolidation Act, 1997 and is not therefore chargeable to Irish tax on its relevant income or relevant gains. No stamp, transferor registration tax is payable in Ireland on the issue, redemption or transfer of shares in the Company. Distributions and intereston securities issued in countries other than Ireland may be subject to taxes including withholding taxes imposed by suchcountries. The Company may not be able to benefit from a reduction in the rate of withholding tax by virtue of the double taxationagreement in operation between Ireland and other countries. The Company may not, therefore, be able to reclaim withholdingtax suffered by it in particular countries.

To the extent that a chargeable event arises in respect of a shareholder, the Company may be required to deduct tax in connectionwith that chargeable event and pay the tax to the Irish Revenue Commissioners. A chargeable event can include dividendpayments to shareholders, appropriation, cancellation, redemption, repurchase or transfer of shares, or a deemed disposal ofshares every 8 years beginning from the date of acquisition of those shares. Certain exemptions can apply. To the extent thatshareholders have appropriate tax declarations in place with the Company there may be no requirement to deduct tax.

The Funds (with the exception of Barings Global High Yield Strategies Fund) hold their investments through Subsidiaries, whichare Irish resident and are qualifying companies for the purposes of Section 110 of the Taxes Consolidation Act, 1997, asamended. The Subsidiaries are subject to corporation tax in Ireland on their profits computed as though they were carrying ona trade. However, as the Subsidiaries are financed by borrowing, the cost of this finance is deductible and accordingly theirprofits for tax purposes will not be material. Interest payable by the relevant Subsidiaries to the Funds can be paid free of anyIrish withholding tax.

21. Comparative period

The comparative amounts in these financial statements are for the financial year ended 31 December 2017.

22. Significant events during the financial year

With effect from 29 June 2018, the Company has appointed Baring Asset Management Limited and Barings LLC as InvestmentManagers to all Funds with the exception of Mezzanine Loan Fund 1, which is not managed by Barings LLC. Barings LLCcontinues to act as the Investment Manager for all of the Funds with the exception of Mezzanine Loan Fund 1.

With effect from 29 June 2018, Baring International Fund Managers (Ireland) Limited was appointed as Manager and AlternativeInvestment Fund Manager to the Funds.

On 31 August 2018, Barings U.S. Loan Fund launched.

There were no other significant events during the financial year, which require adjustment to, or disclosure in the financialstatements.




23. Subsequent events

The outcome of the Brexit negotiations continues to be uncertain and Barings continues to plan for a number of possiblescenarios including a “no-deal” outcome. Barings is committed to ensuring continuity for its investors and protecting againstpotential regulatory or other market access barriers related to Brexit. In this regard, Barings has appointed Baring InternationalFund Managers (Ireland) Limited (“BIFMI”), an Irish AIFM, as the manager of the Fund. As a consequence, Barings will be ableto use BIFMI’s AIFMD passports to continue to market products into EU27 and to manage EU27 funds, unaffected by Brexit.Portfolio management in respect of European investments will continue to be delegated back to Baring Asset ManagementLimited, a UK entity and portfolio management of US investments will continue to be conducted by Barings LLC, a US entity.The depositaries/custodians and administrators of such funds are also EU27 entities. In addition, Barings has established aDublin office and recruited several key employees for it, reflecting the increased significance of BIFMI’s role within the business.

Whilst the medium to long-term consequences of the decision to leave the EU remain uncertain in any scenario, there could beshort-term volatility which could have a negative impact on general economic conditions, business and consumer confidencein both the UK and EU, which may in turn have negative political, economic and market impacts more widely. The longer-termconsequences may be affected by the terms of any future arrangements the UK has with the remaining member states of theEU27. Among other things, the UK's decision to leave the EU could lead to changes in the law and tax treatment of funds,instability in the equity, debt and foreign exchange markets, including volatility in the value of the pound sterling or the euro.

The following distributions were paid by the Funds subsequent to the financial year end:

31-Dec-18 31-Dec-18

Value Per Share

Barings Global Loan Fund US$ US$

A EUR Class 2,073,063 0.71A GBP Class 1,991,816 1.08A USD Class 5,064,241 1.28B CHF Class 9,421 0.46B EUR Class 57,717 0.65B GBP Class 3,721,755 1.07B USD Class 7,759,675 1.25C AUD Class 16,791,847 0.97C CHF Class 44,037 0.44C EUR Class 147,430 0.61C GBP Class 825,865 1.05C USD Class 458,760 1.26D EUR Class 72,439 0.61D GBP Class 60,051 0.99D SEK Class 14,628 0.06D USD Class 490,572 1.34E CAD Class 7,509 0.67E GBP Class 2,090 0.89E SGD Class 1,019 0.68E USD Class 119,309 1.15N USD Class 106,711 1.06

––––––––––––39,819,955

––––––––––––




23. Subsequent events (continued)

31-Dec-18 31-Dec-18

Value Per Share

Barings European Loan Fund US$ US$

A CHF Class 21,382 0.81A DKK Class 2,630 0.13A EUR Class 3,495,690 1.12A GBP Class 123,699 1.41A JPY Class 168,452 0.01A USD Class 1,343,527 1.52B EUR Class 3,508,118 1.07B GBP Class 71,659 1.44B NOK Class 146,768 0.14B USD Class 1,654,878 1.53C AUD Class 13,106 1.03C CAD Class 98,091 0.95C CHF Class 17,756 0.77C EUR Class 248,225 1.02C SGD Class 27,529 0.95C USD Class 1,504,796 1.48E AUD Class 182,947 0.98E CAD Class 45,760 0.91E CHF Class 7,077 0.71E EUR Class 235,356 0.92E GBP Class 26,707 1.30E SGD Class 80,659 0.90E USD Class 1,627,607 1.41

––––––––––––14,652,419

––––––––––––

31-Dec-18 31-Dec-18

Value Per Share

Barings Global Loan and High Yield Bond Fund US$ US$

E AUD Class 2,471,983 0.83––––––––––––

31-Dec-18 31-Dec-18

Value Per Share

Barings U.S. Loan Fund US$ US$

A CHF Class 3,612 0.49A JPY Class 29,078 0.01A USD Class 5,804,767 1.25B JPY Class 1,999,022 0.01F USD Class 1,671 1.35

––––––––––––7,838,150

––––––––––––

There were no other subsequent events affecting the Funds after the financial year end.

24. Charges

The loans to the Subsidiaries are secured by the assignment of a fixed first charge of the Company’s rights, title and intereston debt investments.

25. Approval of the financial statements

The Board of Directors approved these financial statements on 23 April 2019.




Loans to SubsidiaryFair Value % of Net

Country Industry Obligor US$ Assets

Ireland Finance Barings Global Loan Limited 7,979,084,537 100.52––––––––––––– –––––––

Total Loans to Subsidiary (31 December 2017: US$9,363,009,926) 7,979,084,537 100.52

––––––––––––– –––––––

Forward Foreign Exchange Contracts

Unrealised

Amount Amount Gain % of Net

Maturity Counterparty Currency Bought Currency Sold US$ Assets

15/01/2019 National Australia Bank Limited CHF 305,423,232 USD 309,204,806 1,853,242 0.0215/01/2019 National Australia Bank Limited CHF 24,957,190 USD 25,266,196 151,435 0.0015/01/2019 National Australia Bank Limited CHF 1,475,205 USD 1,491,500 10,922 0.0015/01/2019 National Australia Bank Limited CHF 120,544 USD 121,876 892 0.0015/01/2019 National Australia Bank Limited EUR 241,315,121 USD 275,671,155 1,090,471 0.0215/01/2019 National Australia Bank Limited EUR 124,435,053 USD 142,150,871 562,306 0.0115/01/2019 National Australia Bank Limited EUR 48,629,765 USD 55,553,185 219,751 0.0015/01/2019 National Australia Bank Limited EUR 4,557,067 USD 5,205,857 20,593 0.0015/01/2019 National Australia Bank Limited EUR 2,648,071 USD 3,025,077 11,966 0.0015/01/2019 National Australia Bank Limited SEK 301,245,574 USD 33,591,166 432,573 0.0115/01/2019 National Australia Bank Limited SEK 198,296,880 USD 22,111,606 284,744 0.0015/01/2019 National Australia Bank Limited USD 7,939,093 AUD 10,965,310 213,705 0.0015/01/2019 National Australia Bank Limited USD 11,918,821 GBP 9,300,825 56,963 0.0015/01/2019 National Australia Bank Limited USD 11,639,209 GBP 9,082,630 55,627 0.0015/01/2019 National Australia Bank Limited USD 7,942,163 GBP 6,197,649 37,958 0.0015/01/2019 National Australia Bank Limited USD 7,510,231 GBP 5,860,592 35,893 0.0015/01/2019 National Australia Bank Limited USD 4,707,595 GBP 3,673,561 22,499 0.0015/01/2019 National Australia Bank Limited USD 2,407,206 GBP 1,878,458 11,505 0.0015/01/2019 State Street Bank CHF 358,213,341 USD 362,652,204 2,169,889 0.0315/01/2019 State Street Bank CHF 29,279,499 USD 29,642,321 177,362 0.0015/01/2019 State Street Bank CHF 10,870,239 USD 11,004,940 65,847 0.0015/01/2019 State Street Bank CHF 9,754,106 USD 9,874,976 59,086 0.0015/01/2019 State Street Bank CHF 3,585,687 USD 3,630,119 21,720 0.0015/01/2019 State Street Bank CHF 1,456,395 USD 1,467,882 15,382 0.0015/01/2019 State Street Bank CHF 1,733,425 USD 1,752,543 12,862 0.0015/01/2019 State Street Bank CHF 2,000,768 USD 2,025,561 12,120 0.0015/01/2019 State Street Bank CHF 140,377 USD 141,925 1,042 0.0015/01/2019 State Street Bank CHF 55,987 USD 56,605 415 0.0015/01/2019 State Street Bank CHF 46,811 USD 47,327 347 0.0015/01/2019 State Street Bank CHF 36,100 USD 36,495 271 0.0015/01/2019 State Street Bank CHF 15,736 USD 15,910 117 0.0015/01/2019 State Street Bank CHF 9,635 USD 9,741 71 0.0015/01/2019 State Street Bank DKK 4,307,080 USD 659,415 2,236 0.0015/01/2019 State Street Bank EUR 242,091,427 USD 276,567,667 1,084,295 0.0215/01/2019 State Street Bank EUR 177,184,887 USD 202,417,786 793,588 0.0115/01/2019 State Street Bank EUR 64,272,653 USD 73,425,722 287,869 0.0115/01/2019 State Street Bank EUR 22,881,760 USD 26,140,351 102,484 0.0015/01/2019 State Street Bank EUR 15,708,574 USD 17,945,631 70,357 0.0015/01/2019 State Street Bank EUR 11,766,031 USD 13,441,632 52,699 0.0015/01/2019 State Street Bank EUR 7,596,266 USD 8,678,050 34,023 0.0015/01/2019 State Street Bank EUR 2,530,452 USD 2,879,700 22,447 0.0015/01/2019 State Street Bank EUR 4,309,012 USD 4,922,658 19,299 0.0015/01/2019 State Street Bank EUR 2,671,752 USD 3,052,236 11,966 0.0015/01/2019 State Street Bank EUR 90,000 USD 102,798 422 0.0015/01/2019 State Street Bank SEK 301,247,254 USD 33,591,166 432,763 0.0115/01/2019 State Street Bank SEK 198,297,986 USD 22,111,606 284,869 0.0115/01/2019 State Street Bank SEK 102,880,620 USD 11,471,905 147,795 0.0015/01/2019 State Street Bank SEK 25,967,233 USD 2,895,527 37,304 0.00

Barings Global Investment Funds PlcBarings Global Loan Fund

Schedule of Investments (Unaudited)as at 31 December 2018


Forward Foreign Exchange Contracts (continued)

Unrealised



15/01/2019 State Street Bank SEK 1,890,900 USD 209,001 4,564 0.0015/01/2019 State Street Bank SEK 1,400,000 USD 154,470 3,651 0.0015/01/2019 State Street Bank SEK 309,100 USD 34,039 872 0.0015/01/2019 State Street Bank SGD 4,550,954 USD 3,325,620 14,324 0.0015/01/2019 State Street Bank SGD 148,664 USD 108,637 468 0.0015/01/2019 State Street Bank USD 9,507,526 AUD 13,167,516 230,617 0.0015/01/2019 State Street Bank USD 7,998,683 AUD 11,078,247 193,727 0.0015/01/2019 State Street Bank USD 5,556,337 AUD 7,674,255 149,596 0.0015/01/2019 State Street Bank USD 7,654,347 AUD 10,762,444 71,884 0.0015/01/2019 State Street Bank USD 6,987,657 AUD 9,915,620 1,806 0.0015/01/2019 State Street Bank USD 6,373 AUD 8,802 172 0.0015/01/2019 State Street Bank USD 3,767 AUD 5,217 91 0.0015/01/2019 State Street Bank USD 3,558 AUD 4,927 86 0.0015/01/2019 State Street Bank USD 3,614 AUD 5,081 34 0.0015/01/2019 State Street Bank USD 3,318 AUD 4,708 1 0.0015/01/2019 State Street Bank USD 20,114 CAD 26,866 428 0.0015/01/2019 State Street Bank USD 8,619 CAD 11,513 183 0.0015/01/2019 State Street Bank USD 5,675 CAD 7,536 152 0.0015/01/2019 State Street Bank USD 4,722 CAD 6,311 97 0.0015/01/2019 State Street Bank USD 2,351 CAD 3,122 63 0.0015/01/2019 State Street Bank USD 4,532 CAD 6,110 54 0.0015/01/2019 State Street Bank USD 1,994 CAD 2,666 41 0.0015/01/2019 State Street Bank USD 1,908 CAD 2,573 23 0.0015/01/2019 State Street Bank USD 4,140 CAD 5,648 2 0.0015/01/2019 State Street Bank USD 1,732 CAD 2,362 1 0.0015/01/2019 State Street Bank USD 10,321,392 EUR 8,990,032 10,825 0.0015/01/2019 State Street Bank USD 41,688,644 GBP 32,544,718 182,561 0.0015/01/2019 State Street Bank USD 7,097,258 GBP 5,538,157 34,140 0.0015/01/2019 State Street Bank USD 5,150,969 GBP 4,019,422 24,778 0.0015/01/2019 State Street Bank USD 4,218,608 GBP 3,291,878 20,293 0.0015/01/2019 State Street Bank USD 3,185,832 GBP 2,488,863 11,647 0.0015/01/2019 State Street Bank USD 2,164,920 GBP 1,689,337 10,414 0.0015/01/2019 State Street Bank USD 2,144,627 GBP 1,673,503 10,316 0.0015/01/2019 State Street Bank USD 4,198,820 GBP 3,284,629 9,751 0.0015/01/2019 State Street Bank USD 2,222,553 GBP 1,736,322 8,125 0.0015/01/2019 State Street Bank USD 2,929,240 GBP 2,291,469 6,802 0.0015/01/2019 State Street Bank USD 1,821,971 GBP 1,423,376 6,661 0.0015/01/2019 State Street Bank USD 1,637,771 GBP 1,279,474 5,987 0.0015/01/2019 State Street Bank USD 980,923 GBP 765,437 4,719 0.0015/01/2019 State Street Bank USD 1,868,824 GBP 1,461,933 4,340 0.0015/01/2019 State Street Bank USD 1,159,190 GBP 905,593 4,238 0.0015/01/2019 State Street Bank USD 1,690,436 GBP 1,322,385 3,926 0.0015/01/2019 State Street Bank USD 1,525,594 GBP 1,193,433 3,543 0.0015/01/2019 State Street Bank USD 409,361 GBP 319,434 1,969 0.0015/01/2019 State Street Bank USD 506,381 GBP 395,599 1,851 0.0015/01/2019 State Street Bank USD 645,431 GBP 504,904 1,499 0.0015/01/2019 State Street Bank USD 52,673 GBP 41,102 253 0.0015/01/2019 State Street Bank USD 92,809 GBP 72,602 216 0.0015/01/2019 State Street Bank USD 37,968 GBP 29,662 139 0.0015/01/2019 State Street Bank USD 17,634 GBP 13,760 85 0.0015/01/2019 State Street Bank USD 8,723 GBP 6,807 42 0.0015/01/2019 State Street Bank USD 9,164 GBP 7,159 34 0.0015/01/2019 State Street Bank USD 9,458 GBP 7,399 22 0.0015/01/2019 State Street Bank USD 3,827 GBP 2,994 9 0.0015/01/2019 State Street Bank USD 310,209 NOK 2,634,753 5,320 0.00


Schedule of Investments (Unaudited)as at 31 December 2018 (continued)



Unrealised



15/01/2019 State Street Bank USD 77,605 NOK 657,448 1,526 0.0015/01/2019 State Street Bank USD 67,082 NOK 574,726 576 0.00

––––––––––– ––––––––Total unrealised gain on forward foreign exchange contracts (31 December 2017: US$111,624,810) 12,043,536 0.15

––––––––––– ––––––––

Unrealised

Amount Amount Loss % of Net


15/01/2019 National Australia Bank Limited AUD 1,142,167,896 USD 824,586,970 (19,895,622) (0.25)15/01/2019 National Australia Bank Limited GBP 327,790,176 USD 419,892,332 (1,843,340) (0.02)15/01/2019 National Australia Bank Limited GBP 320,100,318 USD 410,041,785 (1,800,096) (0.02)15/01/2019 National Australia Bank Limited GBP 218,424,542 USD 279,797,252 (1,228,318) (0.02)15/01/2019 National Australia Bank Limited GBP 206,545,595 USD 264,580,570 (1,161,517) (0.02)15/01/2019 National Australia Bank Limited GBP 129,467,796 USD 165,845,528 (728,067) (0.01)15/01/2019 National Australia Bank Limited GBP 66,202,742 USD 84,804,323 (372,294) (0.01)15/01/2019 National Australia Bank Limited USD 2,789,713 EUR 2,442,331 (11,369) (0.00)15/01/2019 National Australia Bank Limited USD 1,438,526 EUR 1,259,397 (5,863) (0.00)15/01/2019 National Australia Bank Limited USD 562,182 EUR 492,178 (2,291) (0.00)15/01/2019 National Australia Bank Limited USD 52,682 EUR 46,122 (215) (0.00)15/01/2019 National Australia Bank Limited USD 30,613 EUR 26,801 (125) (0.00)15/01/2019 National Australia Bank Limited USD 55,506 SEK 496,924 (619) (0.00)15/01/2019 National Australia Bank Limited USD 41,563 SEK 372,096 (463) (0.00)15/01/2019 State Street Bank AUD 796,164,213 USD 574,790,754 (13,869,318) (0.18)15/01/2019 State Street Bank AUD 22,000,000 USD 16,152,576 (652,920) (0.01)15/01/2019 State Street Bank AUD 910,437 USD 657,290 (15,860) (0.00)15/01/2019 State Street Bank CAD 1,114,895 USD 831,380 (14,445) (0.00)15/01/2019 State Street Bank CAD 477,802 USD 356,299 (6,191) (0.00)15/01/2019 State Street Bank GBP 191,229,239 USD 244,957,962 (1,072,706) (0.02)15/01/2019 State Street Bank GBP 138,314,686 USD 177,176,271 (775,881) (0.01)15/01/2019 State Street Bank GBP 57,248,577 USD 73,333,423 (321,138) (0.00)15/01/2019 State Street Bank GBP 56,889,662 USD 72,873,666 (319,125) (0.00)15/01/2019 State Street Bank GBP 14,999,213 USD 19,213,467 (84,139) (0.00)15/01/2019 State Street Bank GBP 11,174,478 USD 14,314,115 (62,684) (0.00)15/01/2019 State Street Bank GBP 1,433,421 USD 1,836,162 (8,041) (0.00)15/01/2019 State Street Bank GBP 481,218 USD 616,423 (2,699) (0.00)15/01/2019 State Street Bank GBP 237,222 USD 303,873 (1,331) (0.00)15/01/2019 State Street Bank GBP 99,489 USD 127,497 (613) (0.00)15/01/2019 State Street Bank NOK 102,137,406 USD 11,996,829 (177,688) (0.00)15/01/2019 State Street Bank USD 3,854,209 CHF 3,822,026 (38,330) (0.00)15/01/2019 State Street Bank USD 3,731,621 CHF 3,697,802 (34,402) (0.00)15/01/2019 State Street Bank USD 4,483,348 CHF 4,430,579 (28,972) (0.00)15/01/2019 State Street Bank USD 1,467,882 CHF 1,456,395 (15,382) (0.00)15/01/2019 State Street Bank USD 3,479,081 CHF 3,426,644 (10,782) (0.00)15/01/2019 State Street Bank USD 315,645 CHF 313,010 (3,139) (0.00)15/01/2019 State Street Bank USD 310,009 CHF 307,200 (2,858) (0.00)15/01/2019 State Street Bank USD 368,178 CHF 363,845 (2,379) (0.00)15/01/2019 State Street Bank USD 1,627,980 CHF 1,600,000 (1,539) (0.00)15/01/2019 State Street Bank USD 295,459 CHF 291,006 (916) (0.00)15/01/2019 State Street Bank USD 63,678 CHF 63,146 (633) (0.00)15/01/2019 State Street Bank USD 56,766 CHF 56,292 (565) (0.00)15/01/2019 State Street Bank USD 57,413 CHF 56,893 (529) (0.00)15/01/2019 State Street Bank USD 54,983 CHF 54,484 (507) (0.00)15/01/2019 State Street Bank USD 68,668 CHF 67,860 (444) (0.00)15/01/2019 State Street Bank USD 66,213 CHF 65,434 (428) (0.00)15/01/2019 State Street Bank USD 21,154 CHF 20,978 (210) (0.00)





Unrealised



15/01/2019 State Street Bank USD 20,537 CHF 20,351 (189) (0.00)15/01/2019 State Street Bank USD 51,336 CHF 50,563 (159) (0.00)15/01/2019 State Street Bank USD 47,636 CHF 46,918 (148) (0.00)15/01/2019 State Street Bank USD 19,607 CHF 19,376 (127) (0.00)15/01/2019 State Street Bank USD 11,620 CHF 11,523 (116) (0.00)15/01/2019 State Street Bank USD 11,250 CHF 11,148 (104) (0.00)15/01/2019 State Street Bank USD 13,516 CHF 13,357 (87) (0.00)15/01/2019 State Street Bank USD 19,281 CHF 18,991 (60) (0.00)15/01/2019 State Street Bank USD 7,366 CHF 7,290 (59) (0.00)15/01/2019 State Street Bank USD 10,494 CHF 10,336 (33) (0.00)15/01/2019 State Street Bank USD 3,737 DKK 24,539 (33) (0.00)15/01/2019 State Street Bank USD 7,183 DKK 46,924 (25) (0.00)15/01/2019 State Street Bank USD 4,255 DKK 27,781 (13) (0.00)15/01/2019 State Street Bank USD 3,616 DKK 23,603 (10) (0.00)15/01/2019 State Street Bank USD 3,392 DKK 22,117 (6) (0.00)15/01/2019 State Street Bank USD 3,729,914 EUR 3,279,045 (30,786) (0.00)15/01/2019 State Street Bank USD 3,114,336 EUR 2,739,742 (27,844) (0.00)15/01/2019 State Street Bank USD 2,813,341 EUR 2,473,049 (22,972) (0.00)15/01/2019 State Street Bank USD 2,842,099 EUR 2,493,325 (17,468) (0.00)15/01/2019 State Street Bank USD 1,938,691 EUR 1,705,505 (17,333) (0.00)15/01/2019 State Street Bank USD 3,610,647 EUR 3,158,341 (11,619) (0.00)15/01/2019 State Street Bank USD 2,855,775 EUR 2,500,123 (11,588) (0.00)15/01/2019 State Street Bank USD 2,088,175 EUR 1,828,118 (8,473) (0.00)15/01/2019 State Street Bank USD 2,983,821 EUR 2,608,224 (7,522) (0.00)15/01/2019 State Street Bank USD 2,242,007 EUR 1,961,151 (7,215) (0.00)15/01/2019 State Street Bank USD 728,775 EUR 641,118 (6,516) (0.00)15/01/2019 State Street Bank USD 1,874,412 EUR 1,638,465 (4,725) (0.00)15/01/2019 State Street Bank USD 371,671 EUR 327,924 (4,422) (0.00)15/01/2019 State Street Bank USD 2,713,474 EUR 2,369,414 (3,980) (0.00)15/01/2019 State Street Bank USD 757,041 EUR 662,760 (3,072) (0.00)15/01/2019 State Street Bank USD 847,549 EUR 741,376 (2,727) (0.00)15/01/2019 State Street Bank USD 1,733,090 EUR 1,513,340 (2,542) (0.00)15/01/2019 State Street Bank USD 705,165 EUR 616,400 (1,778) (0.00)15/01/2019 State Street Bank USD 147,694 EUR 129,930 (1,320) (0.00)15/01/2019 State Street Bank USD 267,922 EUR 234,556 (1,087) (0.00)15/01/2019 State Street Bank USD 118,254 EUR 104,030 (1,057) (0.00)15/01/2019 State Street Bank USD 653,273 EUR 570,440 (958) (0.00)15/01/2019 State Street Bank USD 170,859 EUR 149,580 (693) (0.00)15/01/2019 State Street Bank USD 76,159 EUR 66,998 (681) (0.00)15/01/2019 State Street Bank USD 137,808 EUR 120,646 (559) (0.00)15/01/2019 State Street Bank USD 171,769 EUR 150,252 (553) (0.00)15/01/2019 State Street Bank USD 57,110 EUR 50,241 (511) (0.00)15/01/2019 State Street Bank USD 144,178 EUR 126,117 (464) (0.00)15/01/2019 State Street Bank USD 49,805 EUR 43,814 (445) (0.00)15/01/2019 State Street Bank USD 142,912 EUR 124,922 (360) (0.00)15/01/2019 State Street Bank USD 74,363 EUR 65,102 (302) (0.00)15/01/2019 State Street Bank USD 33,810 EUR 29,743 (302) (0.00)15/01/2019 State Street Bank USD 88,903 EUR 77,766 (286) (0.00)15/01/2019 State Street Bank USD 107,933 EUR 94,346 (272) (0.00)15/01/2019 State Street Bank USD 219,424 EUR 191,535 (245) (0.00)15/01/2019 State Street Bank USD 66,234 EUR 57,937 (213) (0.00)15/01/2019 State Street Bank USD 50,607 EUR 44,304 (205) (0.00)15/01/2019 State Street Bank USD 132,395 EUR 115,608 (194) (0.00)15/01/2019 State Street Bank USD 73,732 EUR 64,450 (186) (0.00)15/01/2019 State Street Bank USD 46,000 EUR 40,237 (148) (0.00)15/01/2019 State Street Bank USD 55,239 EUR 48,286 (139) (0.00)





Unrealised



15/01/2019 State Street Bank USD 91,169 EUR 79,609 (134) (0.00)15/01/2019 State Street Bank USD 31,327 EUR 27,426 (127) (0.00)15/01/2019 State Street Bank USD 38,499 EUR 33,677 (124) (0.00)15/01/2019 State Street Bank USD 48,310 EUR 42,229 (122) (0.00)15/01/2019 State Street Bank USD 68,394 EUR 59,722 (100) (0.00)15/01/2019 State Street Bank USD 32,618 EUR 28,512 (82) (0.00)15/01/2019 State Street Bank USD 50,902 EUR 44,448 (75) (0.00)15/01/2019 State Street Bank USD 45,011 EUR 39,304 (66) (0.00)15/01/2019 State Street Bank USD 29,998 EUR 26,195 (44) (0.00)15/01/2019 State Street Bank USD 1,436 EUR 1,257 (5) (0.00)15/01/2019 State Street Bank USD 6,154,700 GBP 4,871,880 (58,679) (0.00)15/01/2019 State Street Bank USD 3,593,876 GBP 2,844,233 (33,532) (0.00)15/01/2019 State Street Bank USD 3,455,934 GBP 2,731,892 (28,200) (0.00)15/01/2019 State Street Bank USD 2,507,197 GBP 1,984,223 (23,393) (0.00)15/01/2019 State Street Bank USD 2,410,986 GBP 1,905,868 (19,673) (0.00)15/01/2019 State Street Bank USD 2,053,327 GBP 1,625,026 (19,158) (0.00)15/01/2019 State Street Bank USD 1,850,130 GBP 1,464,213 (17,262) (0.00)15/01/2019 State Street Bank USD 1,974,484 GBP 1,560,816 (16,111) (0.00)15/01/2019 State Street Bank USD 1,778,398 GBP 1,405,811 (14,511) (0.00)15/01/2019 State Street Bank USD 1,309,496 GBP 1,036,349 (12,218) (0.00)15/01/2019 State Street Bank USD 1,258,724 GBP 995,012 (10,271) (0.00)15/01/2019 State Street Bank USD 570,509 GBP 451,507 (5,323) (0.00)15/01/2019 State Street Bank USD 548,778 GBP 433,806 (4,478) (0.00)15/01/2019 State Street Bank USD 78,929 GBP 62,465 (736) (0.00)15/01/2019 State Street Bank USD 67,391 GBP 53,272 (550) (0.00)15/01/2019 State Street Bank USD 10,238 GBP 8,103 (96) (0.00)15/01/2019 State Street Bank USD 9,873 GBP 7,805 (81) (0.00)15/01/2019 State Street Bank USD 13,469 GBP 10,600 (49) (0.00)15/01/2019 State Street Bank USD 3,337 GBP 2,641 (31) (0.00)15/01/2019 State Street Bank USD 2,332 GBP 1,850 (28) (0.00)15/01/2019 State Street Bank USD 3,200 GBP 2,530 (26) (0.00)15/01/2019 State Street Bank USD 1,969 GBP 1,553 (11) (0.00)15/01/2019 State Street Bank USD 1,657 GBP 1,301 (3) (0.00)15/01/2019 State Street Bank USD 479,430 NOK 4,159,735 (1,926) (0.00)15/01/2019 State Street Bank USD 56,754 NOK 493,237 (323) (0.00)15/01/2019 State Street Bank USD 63,604 NOK 551,554 (221) (0.00)15/01/2019 State Street Bank USD 338,718 SEK 3,068,240 (7,820) (0.00)15/01/2019 State Street Bank USD 354,192 SEK 3,204,916 (7,782) (0.00)15/01/2019 State Street Bank USD 250,784 SEK 2,269,227 (5,510) (0.00)15/01/2019 State Street Bank USD 373,063 SEK 3,344,477 (4,674) (0.00)15/01/2019 State Street Bank USD 287,826 SEK 2,587,333 (4,397) (0.00)15/01/2019 State Street Bank USD 348,255 SEK 3,112,059 (3,232) (0.00)15/01/2019 State Street Bank USD 243,073 SEK 2,179,130 (3,046) (0.00)15/01/2019 State Street Bank USD 226,335 SEK 2,022,561 (2,101) (0.00)15/01/2019 State Street Bank USD 64,885 SEK 587,118 (1,426) (0.00)15/01/2019 State Street Bank USD 74,226 SEK 667,234 (1,134) (0.00)15/01/2019 State Street Bank USD 62,862 SEK 563,556 (788) (0.00)15/01/2019 State Street Bank USD 55,508 SEK 496,924 (617) (0.00)15/01/2019 State Street Bank USD 58,478 SEK 522,571 (543) (0.00)15/01/2019 State Street Bank USD 41,564 SEK 372,096 (462) (0.00)15/01/2019 State Street Bank USD 16,461 SEK 148,946 (362) (0.00)15/01/2019 State Street Bank USD 28,046 SEK 251,079 (312) (0.00)15/01/2019 State Street Bank USD 15,446 SEK 138,844 (236) (0.00)15/01/2019 State Street Bank USD 15,962 SEK 143,096 (200) (0.00)15/01/2019 State Street Bank USD 14,881 SEK 132,981 (138) (0.00)15/01/2019 State Street Bank USD 10,165 SEK 91,001 (113) (0.00)





Unrealised



15/01/2019 State Street Bank USD 3,073 SEK 27,768 (63) (0.00)15/01/2019 State Street Bank USD 19,223 SGD 26,362 (124) (0.00)15/01/2019 State Street Bank USD 18,474 SGD 25,313 (103) (0.00)15/01/2019 State Street Bank USD 17,951 SGD 24,577 (86) (0.00)15/01/2019 State Street Bank USD 3,332 SGD 4,558 (13) (0.00)15/01/2019 State Street Bank USD 751 SGD 1,028 (4) (0.00)15/01/2019 State Street Bank USD 17,211 SGD 23,457 (4) (0.00)15/01/2019 State Street Bank USD 627 SGD 860 (4) (0.00)15/01/2019 State Street Bank USD 603 SGD 826 (3) (0.00)15/01/2019 State Street Bank USD 561 SGD 765 (0) (0.00)15/01/2019 State Street Bank USD 107 SGD 146 (0) (0.00)

––––––––––– ––––––––Total unrealised loss on forward foreign exchange contracts (31 December 2017: (US$1,091,266)) (45,094,990) (0.57)

––––––––––– ––––––––Net loss on forward foreign exchange contracts (31 December 2017: US$110,533,544) (33,051,454) (0.42)

––––––––––– ––––––––

Fair Value % of Net

Summary US$ Assets

Total investments at fair value through profit or loss 7,979,084,537 100.52Net loss on forward foreign exchange contracts (33,051,454) (0.42)Other assets 8,316 0.00Other liabilities (7,792,723) (0.10)

––––––––––––– ––––––––Total Net Assets 7,938,248,676 100.00

––––––––––––– ––––––––––––––––––––– ––––––––




Loans to Subsidiary

Fair Value % of Net

Country Industry Obligor € Assets

Ireland Finance Barings European Senior Loans Limited 5,312,988,365 100.47––––––––––––– –––––––

Total Loans to Subsidiary (31 December 2017: €6,054,632,113) 5,312,988,365 100.47

––––––––––––– –––––––Forward Foreign Exchange Contracts

Unrealised


Maturity Counterparty Currency Bought Currency Sold € Assets

15/01/2019 National Australia Bank Limited CHF 658,145 EUR 582,547 1,933 0.0015/01/2019 National Australia Bank Limited CHF 43,756,415 EUR 38,776,985 81,874 0.0015/01/2019 National Australia Bank Limited EUR 986,638 GBP 879,430 8,701 0.0015/01/2019 National Australia Bank Limited EUR 89,483 NOK 868,194 1,884 0.0015/01/2019 National Australia Bank Limited EUR 652,335 NOK 6,329,191 13,737 0.0015/01/2019 State Street Bank CHF 3,695 EUR 3,270 11 0.0015/01/2019 State Street Bank CHF 13,717 EUR 12,167 15 0.0015/01/2019 State Street Bank CHF 17,775 EUR 15,734 52 0.0015/01/2019 State Street Bank CHF 33,603 EUR 29,744 99 0.0015/01/2019 State Street Bank CHF 39,127 EUR 34,632 115 0.0015/01/2019 State Street Bank CHF 135,697 EUR 120,110 398 0.0015/01/2019 State Street Bank CHF 243,353 EUR 215,656 460 0.0015/01/2019 State Street Bank CHF 624,588 EUR 552,845 1,834 0.0015/01/2019 State Street Bank CHF 740,355 EUR 655,315 2,173 0.0015/01/2019 State Street Bank CHF 1,170,853 EUR 1,037,591 2,211 0.0015/01/2019 State Street Bank CHF 2,218,172 EUR 1,965,708 4,189 0.0015/01/2019 State Street Bank CHF 2,582,859 EUR 2,288,888 4,878 0.0015/01/2019 State Street Bank CHF 8,750,405 EUR 7,754,468 16,524 0.0015/01/2019 State Street Bank CHF 41,232,201 EUR 36,539,311 77,863 0.0015/01/2019 State Street Bank CHF 49,326,647 EUR 43,712,478 93,149 0.0015/01/2019 State Street Bank EUR 4,124 AUD 6,660 32 0.0015/01/2019 State Street Bank EUR 4,473 AUD 7,224 35 0.0015/01/2019 State Street Bank EUR 14,729 AUD 23,789 115 0.0015/01/2019 State Street Bank EUR 5,974 AUD 9,458 164 0.0015/01/2019 State Street Bank EUR 6,405 AUD 10,141 175 0.0015/01/2019 State Street Bank EUR 60,981 AUD 98,492 478 0.0015/01/2019 State Street Bank EUR 22,912 AUD 36,276 628 0.0015/01/2019 State Street Bank EUR 96,110 AUD 152,170 2,633 0.0015/01/2019 State Street Bank EUR 10,233 CAD 16,004 8 0.0015/01/2019 State Street Bank EUR 9,890 CAD 15,321 102 0.0015/01/2019 State Street Bank EUR 17,388 CAD 26,937 179 0.0015/01/2019 State Street Bank EUR 20,782 CAD 32,194 213 0.0015/01/2019 State Street Bank EUR 34,615 CAD 53,623 355 0.0015/01/2019 State Street Bank EUR 15,449 CAD 23,457 463 0.0015/01/2019 State Street Bank EUR 27,081 CAD 41,322 681 0.0015/01/2019 State Street Bank EUR 27,014 CAD 41,017 809 0.0015/01/2019 State Street Bank EUR 33,696 CAD 51,161 1,010 0.0015/01/2019 State Street Bank EUR 46,587 CAD 71,086 1,171 0.0015/01/2019 State Street Bank EUR 58,108 CAD 88,666 1,461 0.0015/01/2019 State Street Bank EUR 54,070 CAD 82,096 1,620 0.0015/01/2019 State Street Bank EUR 94,755 CAD 144,584 2,382 0.0015/01/2019 State Street Bank EUR 580,298 CAD 879,358 18,488 0.0015/01/2019 State Street Bank EUR 5,262 CHF 5,923 1 0.0015/01/2019 State Street Bank EUR 27,467 CHF 30,927 2 0.0015/01/2019 State Street Bank EUR 390,633 CHF 439,767 88 0.0015/01/2019 State Street Bank EUR 176 DKK 1,314 - 0.0015/01/2019 State Street Bank EUR 1,762 DKK 13,152 - 0.0015/01/2019 State Street Bank EUR 8,651 GBP 7,737 47 0.0015/01/2019 State Street Bank EUR 17,296 GBP 15,468 95 0.0015/01/2019 State Street Bank EUR 34,414 GBP 30,778 189 0.0015/01/2019 State Street Bank EUR 35,443 GBP 31,698 195 0.00

Barings Global Investment Funds PlcBarings European Loan FundSchedule of Investments (Unaudited)

as at 31 December 2018



Unrealised



15/01/2019 State Street Bank EUR 24,159 GBP 21,533 214 0.0015/01/2019 State Street Bank EUR 65,412 GBP 58,500 359 0.0015/01/2019 State Street Bank EUR 265,641 GBP 238,527 396 0.0015/01/2019 State Street Bank EUR 47,553 GBP 42,385 421 0.0015/01/2019 State Street Bank EUR 83,178 GBP 74,138 736 0.0015/01/2019 State Street Bank EUR 104,869 GBP 93,471 928 0.0015/01/2019 State Street Bank EUR 187,441 GBP 167,635 1,029 0.0015/01/2019 State Street Bank EUR 183,611 GBP 163,655 1,625 0.0015/01/2019 State Street Bank EUR 705,084 GBP 630,580 3,870 0.0015/01/2019 State Street Bank EUR 571,362 GBP 509,261 5,058 0.0015/01/2019 State Street Bank EUR 994,101 GBP 886,052 8,800 0.0015/01/2019 State Street Bank EUR 10,634 NOK 102,987 243 0.0015/01/2019 State Street Bank EUR 25,094 NOK 243,465 529 0.0015/01/2019 State Street Bank EUR 71,313 NOK 690,667 1,627 0.0015/01/2019 State Street Bank EUR 80,447 NOK 780,498 1,697 0.0015/01/2019 State Street Bank EUR 605,010 NOK 5,859,493 13,802 0.0015/01/2019 State Street Bank EUR 788,956 NOK 7,654,444 16,644 0.0015/01/2019 State Street Bank EUR 3 USD 3 - 0.0015/01/2019 State Street Bank EUR 12,054 USD 13,713 98 0.0015/01/2019 State Street Bank EUR 8,498 USD 9,631 100 0.0015/01/2019 State Street Bank EUR 59,468 USD 68,087 101 0.0015/01/2019 State Street Bank EUR 104,961 USD 120,175 178 0.0015/01/2019 State Street Bank EUR 198,364 USD 227,248 222 0.0015/01/2019 State Street Bank EUR 30,782 USD 35,014 252 0.0015/01/2019 State Street Bank EUR 111,958 USD 127,959 388 0.0015/01/2019 State Street Bank EUR 102,230 USD 116,286 837 0.0015/01/2019 State Street Bank EUR 103,359 USD 117,571 846 0.0015/01/2019 State Street Bank EUR 258,097 USD 294,984 893 0.0015/01/2019 State Street Bank EUR 173,066 USD 197,360 983 0.0015/01/2019 State Street Bank EUR 400,896 USD 458,495 1,124 0.0015/01/2019 State Street Bank EUR 1,150,896 USD 1,318,477 1,285 0.0015/01/2019 State Street Bank EUR 463,421 USD 530,003 1,299 0.0015/01/2019 State Street Bank EUR 485,987 USD 555,811 1,363 0.0015/01/2019 State Street Bank EUR 521,585 USD 596,523 1,462 0.0015/01/2019 State Street Bank EUR 538,053 USD 615,357 1,509 0.0015/01/2019 State Street Bank EUR 277,146 USD 316,050 1,574 0.0015/01/2019 State Street Bank EUR 522,276 USD 597,071 1,676 0.0015/01/2019 State Street Bank EUR 431,766 USD 493,164 1,766 0.0015/01/2019 State Street Bank EUR 634,577 USD 725,454 2,035 0.0015/01/2019 State Street Bank EUR 733,330 USD 838,691 2,056 0.0015/01/2019 State Street Bank EUR 271,199 USD 308,489 2,220 0.0015/01/2019 State Street Bank EUR 717,357 USD 820,089 2,302 0.0015/01/2019 State Street Bank EUR 804,243 USD 919,419 2,580 0.0015/01/2019 State Street Bank EUR 816,780 USD 933,751 2,621 0.0015/01/2019 State Street Bank EUR 656,166 USD 749,473 2,683 0.0015/01/2019 State Street Bank EUR 946,667 USD 1,082,240 3,037 0.0015/01/2019 State Street Bank EUR 989,925 USD 1,131,405 3,426 0.0015/01/2019 State Street Bank EUR 1,249,561 USD 1,429,090 3,504 0.0015/01/2019 State Street Bank EUR 590,138 USD 672,445 3,818 0.0015/01/2019 State Street Bank EUR 595,685 USD 678,766 3,854 0.0015/01/2019 State Street Bank EUR 1,390,039 USD 1,589,752 3,897 0.0015/01/2019 State Street Bank EUR 1,932,995 USD 2,209,819 6,202 0.0015/01/2019 State Street Bank EUR 2,102,802 USD 2,403,945 6,747 0.0015/01/2019 State Street Bank EUR 1,280,228 USD 1,458,782 8,282 0.0015/01/2019 State Street Bank EUR 1,204,715 USD 1,370,363 9,862 0.0015/01/2019 State Street Bank EUR 1,243,191 USD 1,414,254 10,070 0.0015/01/2019 State Street Bank JPY 21,525,920 EUR 167,851 3,573 0.0015/01/2019 State Street Bank JPY 32,636,162 EUR 254,485 5,416 0.00

Barings Global Investment Funds PlcBarings European Loan FundSchedule of Investments (Unaudited)as at 31 December 2018 (continued)



Unrealised



15/01/2019 State Street Bank JPY 1,270,084,197 EUR 9,934,648 179,803 0.0015/01/2019 State Street Bank JPY 1,924,461,829 EUR 15,053,216 272,442 0.0115/01/2019 State Street Bank SEK 54,686 EUR 5,348 37 0.0015/01/2019 State Street Bank SEK 2,329,519 EUR 227,814 1,593 0.0015/01/2019 State Street Bank SEK 6,969,669 EUR 680,289 6,071 0.0015/01/2019 State Street Bank SEK 296,918,011 EUR 28,981,296 258,649 0.0115/01/2019 State Street Bank SGD 154,822 EUR 99,034 37 0.0015/01/2019 State Street Bank SGD 835,117 EUR 534,195 199 0.0015/01/2019 State Street Bank SGD 2,855,381 EUR 1,826,490 682 0.0015/01/2019 State Street Bank SGD 5,500,284 EUR 3,518,343 1,313 0.0015/01/2019 State Street Bank SGD 8,829,935 EUR 5,648,207 2,108 0.00

–––––––––––– ––––––––Total unrealised gain on forward foreign exchange contracts (31 December 2017: €914,254) 1,232,972 0.02

–––––––––––– ––––––––

Unrealised



15/01/2019 National Australia Bank Limited GBP 47,752,479 EUR 53,544,674 (443,306) (0.01)15/01/2019 National Australia Bank Limited NOK 405,661,713 EUR 41,710,031 (779,851) (0.01)15/01/2019 National Australia Bank Limited NOK 55,645,823 EUR 5,721,489 (106,974) (0.00)15/01/2019 National Australia Bank Limited USD 158,205,087 EUR 138,488,482 (545,756) (0.01)15/01/2019 National Australia Bank Limited USD 153,062,545 EUR 133,986,838 (528,016) (0.01)15/01/2019 National Australia Bank Limited USD 70,410,806 EUR 61,635,728 (242,894) (0.01)15/01/2019 National Australia Bank Limited USD 61,382,607 EUR 53,732,685 (211,750) (0.01)15/01/2019 National Australia Bank Limited USD 58,827,468 EUR 51,495,985 (202,936) (0.01)15/01/2019 National Australia Bank Limited USD 57,365,148 EUR 50,215,909 (197,891) (0.01)15/01/2019 National Australia Bank Limited USD 46,697,846 EUR 40,878,039 (161,092) (0.00)15/01/2019 National Australia Bank Limited USD 46,111,626 EUR 40,364,878 (159,070) (0.00)15/01/2019 National Australia Bank Limited USD 1,604,705 EUR 1,404,883 (5,703) (0.00)15/01/2019 National Australia Bank Limited USD 1,552,493 EUR 1,359,173 (5,518) (0.00)15/01/2019 National Australia Bank Limited USD 714,191 EUR 625,258 (2,538) (0.00)15/01/2019 National Australia Bank Limited USD 622,616 EUR 545,086 (2,213) (0.00)15/01/2019 National Australia Bank Limited USD 596,699 EUR 522,396 (2,121) (0.00)15/01/2019 National Australia Bank Limited USD 581,866 EUR 509,411 (2,068) (0.00)15/01/2019 National Australia Bank Limited USD 473,665 EUR 414,683 (1,683) (0.00)15/01/2019 National Australia Bank Limited USD 467,719 EUR 409,478 (1,662) (0.00)15/01/2019 State Street Bank AUD 18,442,767 EUR 11,655,162 (325,841) (0.01)15/01/2019 State Street Bank AUD 4,444,275 EUR 2,808,621 (78,520) (0.00)15/01/2019 State Street Bank AUD 1,387,886 EUR 877,094 (24,521) (0.00)15/01/2019 State Street Bank AUD 1,264,003 EUR 798,804 (22,332) (0.00)15/01/2019 State Street Bank AUD 150,000 EUR 93,020 (875) (0.00)15/01/2019 State Street Bank AUD 14,940 EUR 9,470 (292) (0.00)15/01/2019 State Street Bank AUD 7,986 EUR 5,062 (156) (0.00)15/01/2019 State Street Bank AUD 2,661 EUR 1,687 (52) (0.00)15/01/2019 State Street Bank AUD 847 EUR 537 (17) (0.00)15/01/2019 State Street Bank CAD 10,360,918 EUR 6,762,891 (143,444) (0.00)15/01/2019 State Street Bank CAD 6,352,918 EUR 4,146,746 (87,955) (0.00)15/01/2019 State Street Bank CAD 5,093,302 EUR 3,324,555 (70,516) (0.00)15/01/2019 State Street Bank CAD 2,960,385 EUR 1,932,335 (40,986) (0.00)15/01/2019 State Street Bank DKK 1,961,485 EUR 262,868 (138) (0.00)15/01/2019 State Street Bank EUR 427,841 CHF 483,848 (1,850) (0.00)15/01/2019 State Street Bank EUR 561,117 CHF 633,916 (1,847) (0.00)15/01/2019 State Street Bank EUR 247,515 CHF 279,627 (815) (0.00)15/01/2019 State Street Bank EUR 188,517 CHF 213,195 (815) (0.00)15/01/2019 State Street Bank EUR 73,062 CHF 82,576 (272) (0.00)15/01/2019 State Street Bank EUR 179,538 CHF 202,419 (225) (0.00)15/01/2019 State Street Bank EUR 62,722 CHF 70,859 (206) (0.00)




Unrealised



15/01/2019 State Street Bank EUR 39,264 CHF 44,404 (170) (0.00)15/01/2019 State Street Bank EUR 89,980 CHF 101,447 (113) (0.00)15/01/2019 State Street Bank EUR 15,568 CHF 17,587 (51) (0.00)15/01/2019 State Street Bank EUR 11,903 CHF 13,461 (51) (0.00)15/01/2019 State Street Bank EUR 13,440 CHF 15,184 (44) (0.00)15/01/2019 State Street Bank EUR 10,272 CHF 11,617 (44) (0.00)15/01/2019 State Street Bank EUR 8,467 CHF 9,566 (28) (0.00)15/01/2019 State Street Bank EUR 5,535 CHF 6,260 (24) (0.00)15/01/2019 State Street Bank EUR 4,194 CHF 4,740 (16) (0.00)15/01/2019 State Street Bank EUR 1,760 CHF 1,988 (6) (0.00)15/01/2019 State Street Bank EUR 1,150 CHF 1,301 (5) (0.00)15/01/2019 State Street Bank EUR 1,338 DKK 9,990 (1) (0.00)15/01/2019 State Street Bank EUR 529,969 GBP 477,786 (1,335) (0.00)15/01/2019 State Street Bank EUR 231,736 GBP 209,054 (735) (0.00)15/01/2019 State Street Bank EUR 152,007 GBP 137,040 (383) (0.00)15/01/2019 State Street Bank EUR 49,167 GBP 44,326 (124) (0.00)15/01/2019 State Street Bank EUR 27,909 GBP 25,161 (70) (0.00)15/01/2019 State Street Bank EUR 22,831 GBP 20,583 (58) (0.00)15/01/2019 State Street Bank EUR 12,603 GBP 11,362 (32) (0.00)15/01/2019 State Street Bank EUR 6,516 GBP 5,875 (16) (0.00)15/01/2019 State Street Bank EUR 120,318 JPY 15,446,036 (2,688) (0.00)15/01/2019 State Street Bank EUR 67,533 JPY 8,669,708 (1,509) (0.00)15/01/2019 State Street Bank EUR 77,003 JPY 9,770,260 (803) (0.00)15/01/2019 State Street Bank EUR 50,860 JPY 6,453,228 (530) (0.00)15/01/2019 State Street Bank EUR 498,752 NOK 4,984,738 (4,195) (0.00)15/01/2019 State Street Bank EUR 58,805 NOK 587,720 (495) (0.00)15/01/2019 State Street Bank EUR 8,798 NOK 87,933 (74) (0.00)15/01/2019 State Street Bank EUR 196,616 SEK 2,020,544 (2,363) (0.00)15/01/2019 State Street Bank EUR 146,597 SEK 1,505,779 (1,690) (0.00)15/01/2019 State Street Bank EUR 4,618 SEK 47,455 (56) (0.00)15/01/2019 State Street Bank EUR 3,488 SEK 35,831 (40) (0.00)15/01/2019 State Street Bank EUR 29,993 SGD 47,066 (125) (0.00)15/01/2019 State Street Bank EUR 18,683 SGD 29,318 (78) (0.00)15/01/2019 State Street Bank EUR 45,854 SGD 71,770 (72) (0.00)15/01/2019 State Street Bank EUR 28,563 SGD 44,707 (45) (0.00)15/01/2019 State Street Bank EUR 9,503 SGD 14,913 (40) (0.00)15/01/2019 State Street Bank EUR 12,422 SGD 19,442 (20) (0.00)15/01/2019 State Street Bank EUR 2,779 SGD 4,361 (12) (0.00)15/01/2019 State Street Bank EUR 3,633 SGD 5,687 (6) (0.00)15/01/2019 State Street Bank EUR 511 SGD 803 (2) (0.00)15/01/2019 State Street Bank EUR 670 SGD 1,049 (1) (0.00)15/01/2019 State Street Bank EUR 13,936,153 USD 16,000,000 (14,622) (0.00)15/01/2019 State Street Bank EUR 126,652 USD 145,409 (133) (0.00)15/01/2019 State Street Bank EUR 57,592 USD 66,121 (60) (0.00)15/01/2019 State Street Bank GBP 47,310,665 EUR 53,047,842 (437,777) (0.01)15/01/2019 State Street Bank GBP 27,404,680 EUR 30,727,937 (253,582) (0.01)15/01/2019 State Street Bank GBP 8,819,226 EUR 9,888,698 (81,606) (0.00)15/01/2019 State Street Bank GBP 5,031,507 EUR 5,641,658 (46,558) (0.00)15/01/2019 State Street Bank GBP 3,982,784 EUR 4,465,760 (36,854) (0.00)15/01/2019 State Street Bank GBP 2,283,771 EUR 2,560,715 (21,132) (0.00)15/01/2019 State Street Bank GBP 1,160,315 EUR 1,301,021 (10,737) (0.00)15/01/2019 State Street Bank NOK 483,102,617 EUR 49,670,452 (926,692) (0.02)15/01/2019 State Street Bank NOK 49,126,656 EUR 5,050,983 (94,235) (0.00)15/01/2019 State Street Bank NOK 15,480,634 EUR 1,591,650 (29,695) (0.00)15/01/2019 State Street Bank SGD 81,990 EUR 52,481 (15) (0.00)15/01/2019 State Street Bank SGD 51,070 EUR 32,690 (9) (0.00)15/01/2019 State Street Bank SGD 26,495 EUR 16,959 (5) (0.00)15/01/2019 State Street Bank SGD 7,749 EUR 4,960 (1) (0.00)




Unrealised



15/01/2019 State Street Bank SGD 1,436 EUR 919 - (0.00)15/01/2019 State Street Bank USD 149,618,599 EUR 130,967,515 (511,550) (0.01)15/01/2019 State Street Bank USD 118,281,629 EUR 103,536,934 (404,408) (0.01)15/01/2019 State Street Bank USD 90,116,645 EUR 78,882,927 (308,111) (0.01)15/01/2019 State Street Bank USD 57,827,962 EUR 50,619,272 (197,715) (0.00)15/01/2019 State Street Bank USD 55,934,826 EUR 48,962,129 (191,243) (0.00)15/01/2019 State Street Bank USD 52,978,787 EUR 46,374,583 (181,136) (0.00)15/01/2019 State Street Bank USD 46,335,190 EUR 40,559,160 (158,421) (0.00)15/01/2019 State Street Bank USD 41,667,951 EUR 36,473,727 (142,463) (0.00)15/01/2019 State Street Bank USD 1,564,032 EUR 1,369,251 (5,534) (0.00)15/01/2019 State Street Bank USD 1,265,125 EUR 1,107,569 (4,477) (0.00)15/01/2019 State Street Bank USD 884,249 EUR 774,126 (3,129) (0.00)15/01/2019 State Street Bank USD 602,781 EUR 527,712 (2,133) (0.00)15/01/2019 State Street Bank USD 587,490 EUR 514,325 (2,079) (0.00)15/01/2019 State Street Bank USD 580,276 EUR 508,010 (2,053) (0.00)15/01/2019 State Street Bank USD 486,140 EUR 425,597 (1,720) (0.00)15/01/2019 State Street Bank USD 433,642 EUR 379,637 (1,534) (0.00)15/01/2019 State Street Bank USD 170,000 EUR 149,383 (1,156) (0.00)15/01/2019 State Street Bank USD 150,000 EUR 131,868 (1,080) (0.00)

–––––––––––– ––––––––Total unrealised loss on forward foreign exchange contracts (31 December 2017: (€22,074,011)) (8,496,522) (0.16)

–––––––––––– ––––––––Net loss on forward foreign exchange contracts (31 December 2017: (€21,159,757)) (7,263,550) (0.14)

–––––––––––– ––––––––

Fair Value % of Net

Summary € Assets

Total investments at fair value through profit or loss 5,312,988,365 100.47Net loss on forward foreign exchange contracts (7,263,550) (0.14)Other assets 362,912 0.01Other liabilities (18,023,672) (0.34)

––––––––––––– ––––––––Total Net Assets 5,288,064,055 100.00

––––––––––––– ––––––––––––––––––––– ––––––––



Loans to Subsidiary

Fair Value % of Net


Ireland Finance Barings Mezzanine Loan 1 Limited 12,897,739 100.00–––––––––––– ––––––––

Total Loans to Subsidiary (31 December 2017: €38,117,566) 12,897,739 100.00

–––––––––––– ––––––––

Fair Value % of Net

Summary € Assets

Total investments at fair value through profit or loss 12,897,739 100.00Other liabilities (10,576) (0.00)

–––––––––––– ––––––––Total Net Assets 12,887,163 100.00

–––––––––––– –––––––––––––––––––– ––––––––

Barings Global Investment Funds PlcMezzanine Loan Fund 1



Investment Funds

No. of Fair Value % of Net

Country Industry Obligor shares € Assets

Ireland Mutual Funds Barings Global High Yield Bond Fund 131,994 20,625,319 52.62Barings Global Loan Fund 39,754 5,156,532 13.15Barings Global Senior Secured Bond Fund 92,518 13,491,921 34.42

–––––––––––– ––––––––Total Investment Funds (31 December 2017: €56,065,964) 39,273,772 100.19

–––––––––––– ––––––––

Fair Value % of Net

Summary € Assets

Total investments at fair value through profit or loss 39,273,772 100.19Cash and cash equivalents 77,896 0.20Other liabilities (152,628) (0.39)

–––––––––––– ––––––––Total Net Assets 39,199,040 100.00

–––––––––––– –––––––––––––––––––– ––––––––

Barings Global Investment Funds PlcBarings Global High Yield Strategies Fund



Loans to Subsidiary

Fair Value % of Net


Ireland Finance Barings Capital Loans 1 Limited 9,609,618 100.24–––––––––––– ––––––––

Total Loans to Subsidiary (31 December 2017: US$11,023,593) 9,609,618 100.24

–––––––––––– ––––––––

Fair Value % of Net

Summary US$ Assets


–––––––––––– ––––––––Total Net Assets 9,587,047 100.00

–––––––––––– –––––––––––––––––––– ––––––––

Barings Global Investment Funds PlcBarings Global Special Situations Credit Fund 1



Barings Global Investment Funds PlcGlobal Multi-Credit Strategy Fund 1


Loans to Subsidiary

Fair Value % of Net

Country Industry Obligor GBP£ Assets

Ireland Finance Barings Global Multi-Credit Strategy 1 Limited 190,903,535 100.05–––––––––––– ––––––––

Total Loans to Subsidiary (31 December 2017: GBP£197,543,969) 190,903,535 100.05

–––––––––––– ––––––––

Fair Value % of Net

Summary GBP£ Assets


–––––––––––– ––––––––Total Net Assets 190,814,955 100.00

–––––––––––– –––––––––––––––––––– ––––––––


Loans to Subsidiary

Fair Value % of Net


Ireland Finance Barings Global Multi-Credit Strategy 2 Limited 292,320,943 101.74–––––––––––– ––––––––


–––––––––––– ––––––––

Fair Value % of Net

Summary US$ Assets

Total investments at fair value through profit or loss 292,320,943 101.74Other assets 3,191 0.00Other liabilities (5,011,110) (1.74)

–––––––––––– ––––––––Total Net Assets 287,313,024 100.00

–––––––––––– –––––––––––––––––––– ––––––––

Barings Global Investment Funds PlcGlobal Multi-Credit Strategy Fund 2



Loans to Subsidiary

Fair Value % of Net


Ireland Finance Barings European Loan Strategy 1 Limited 271,963,213 92.47–––––––––––– ––––––––

Total Loans to Subsidiary (31 December 2017: €282,142,289) 271,963,213 92.47

–––––––––––– ––––––––


Net loss on forward foreign exchange contracts: Nil (31 December 2017: (€1,201,716))

Fair Value % of Net

Summary € Assets

Total investments at fair value through profit or loss 271,963,213 92.47Other assets 25,159,827 8.55Other liabilities (3,007,223) (1.02)

–––––––––––– ––––––––Total Net Assets 294,115,817 100.00

–––––––––––– –––––––––––––––––––– ––––––––

Barings Global Investment Funds PlcEuropean Loan Strategy Fund 1



Barings Global Investment Funds PlcBarings Global Loan and High Yield Bond Fund


Loans to Subsidiary

Fair Value % of Net


Ireland Finance Barings Global Loan and High Yield Bond Limited 200,808,580 102.61–––––––––––– ––––––––


–––––––––––– ––––––––


Unrealised



15/01/2019 National Australia Bank Limited USD 1,201,647 AUD 1,659,690 32,645 0.0215/01/2019 State Street Bank USD 5,058,127 AUD 7,050,140 91,092 0.05

–––––––––––– ––––––––Total unrealised gain on forward foreign exchange contracts (31 December 2017: US$10,958,690) 123,737 0.07

–––––––––––– ––––––––

Unrealised



15/01/2019 National Australia Bank Limited AUD 172,152,000 USD 124,284,965 (3,029,728) (1.55)15/01/2019 State Street Bank AUD 114,767,841 USD 82,856,643 (1,999,276) (1.02)

–––––––––––– ––––––––Total unrealised loss on forward foreign exchange contracts (31 December 2017: (US$163,028)) (5,029,004) (2.57)

–––––––––––– ––––––––Net loss on forward foreign exchange contracts (31 December 2017: US$10,795,662) (4,905,267) (2.50)

–––––––––––– ––––––––

Fair Value % of Net

Summary US$ Assets

Total investments at fair value through profit or loss 200,808,580 102.61Net loss on forward foreign exchange contracts (4,905,267) (2.50)Other liabilities (213,545) (0.11)

–––––––––––– ––––––––Total Net Assets 195,689,768 100.00

–––––––––––– –––––––––––––––––––– ––––––––


Barings Global Investment Funds PlcBarings U.S. Loan Fund


Loans to Subsidiary

Fair Value % of Net


Ireland Finance Barings U.S. Loan limited 1,253,581,290 99.52–––––––––––– ––––––––

Total Loans to Subsidiary 1,253,581,290 99.52

–––––––––––– ––––––––Forward Foreign Exchange Contracts

Unrealised



15/01/2019 National Australia Bank Limited JPY 15,221,581,158 USD 136,019,920 2,946,361 0.2415/01/2019 National Australia Bank Limited JPY 9,336,679,085 USD 83,432,485 1,807,252 0.1515/01/2019 National Australia Bank Limited JPY 245,190,902 USD 2,191,024 47,461 0.0015/01/2019 National Australia Bank Limited JPY 99,324,609 USD 884,669 22,121 0.0015/01/2019 National Australia Bank Limited JPY 60,924,156 USD 542,642 13,568 0.0015/01/2019 National Australia Bank Limited JPY 1,599,932 USD 14,250 356 0.0015/01/2019 State Street Bank CHF 3,834,038 USD 3,881,548 23,225 0.0015/01/2019 State Street Bank CHF 719,927 USD 728,848 4,361 0.0015/01/2019 State Street Bank CHF 34,395 USD 34,775 255 0.0015/01/2019 State Street Bank CHF 8,683 USD 8,779 64 0.0015/01/2019 State Street Bank EUR 13,403,716 USD 15,312,539 60,033 0.0015/01/2019 State Street Bank EUR 495,159 USD 563,243 4,649 0.0015/01/2019 State Street Bank EUR 1,531 USD 1,749 7 0.0015/01/2019 State Street Bank JPY 17,816,606,133 USD 159,209,041 3,448,665 0.2815/01/2019 State Street Bank JPY 9,137,235,360 USD 81,650,257 1,768,646 0.1415/01/2019 State Street Bank JPY 239,953,660 USD 2,144,224 46,447 0.0015/01/2019 State Street Bank JPY 117,448,580 USD 1,046,109 26,144 0.0015/01/2019 State Street Bank JPY 60,291,273 USD 537,012 13,421 0.0015/01/2019 State Street Bank JPY 1,583,313 USD 14,103 352 0.0015/01/2019 State Street Bank USD 30,186 GBP 23,555 145 0.0015/01/2019 State Street Bank USD 8,728 GBP 6,828 20 0.00

–––––––––––– ––––––––Total unrealised gain on forward foreign exchange contracts 10,233,553 0.81

–––––––––––– ––––––––

Unrealised



15/01/2019 State Street Bank GBP 1,144,681 USD 1,466,297 (6,419) (0.00)15/01/2019 State Street Bank USD 4,072 CHF 4,026 (28) (0.00)15/01/2019 State Street Bank USD 3,998 CHF 3,954 (28) (0.00)15/01/2019 State Street Bank USD 5,666 CHF 5,599 (37) (0.00)15/01/2019 State Street Bank USD 5,992 CHF 5,924 (42) (0.00)15/01/2019 State Street Bank USD 21,618 CHF 21,374 (150) (0.00)15/01/2019 State Street Bank USD 21,222 CHF 20,985 (151) (0.00)15/01/2019 State Street Bank USD 31,060 CHF 30,694 (201) (0.00)15/01/2019 State Street Bank USD 31,805 CHF 31,447 (222) (0.00)15/01/2019 State Street Bank USD 127,697 EUR 111,510 (192) (0.00)15/01/2019 State Street Bank USD 86,499 EUR 75,633 (243) (0.00)15/01/2019 State Street Bank USD 116,030 EUR 101,495 (373) (0.00)15/01/2019 State Street Bank USD 85,171 EUR 74,671 (468) (0.00)15/01/2019 State Street Bank USD 481,915 EUR 421,652 (1,673) (0.00)15/01/2019 State Street Bank USD 7,786 GBP 6,138 (42) (0.00)15/01/2019 State Street Bank USD 7,877 GBP 6,218 (53) (0.00)15/01/2019 State Street Bank USD 11,469 GBP 9,044 (66) (0.00)15/01/2019 State Street Bank USD 25,070 JPY 2,781,001 (320) (0.00)15/01/2019 State Street Bank USD 21,263 JPY 2,400,000 (648) (0.00)15/01/2019 State Street Bank USD 24,336 JPY 2,747,726 (749) (0.00)15/01/2019 State Street Bank USD 34,973 JPY 3,913,401 (755) (0.00)15/01/2019 State Street Bank USD 32,346 JPY 3,632,268 (815) (0.00)


Barings Global Investment Funds PlcBarings U.S. Loan Fund



Unrealised



15/01/2019 State Street Bank USD 954,513 JPY 105,884,511 (12,166) (0.00)15/01/2019 State Street Bank USD 1,708,041 JPY 189,473,716 (21,770) (0.00)15/01/2019 State Street Bank USD 926,590 JPY 104,619,035 (28,536) (0.00)15/01/2019 State Street Bank USD 1,331,564 JPY 149,000,039 (28,740) (0.00)15/01/2019 State Street Bank USD 1,231,699 JPY 138,314,164 (31,048) (0.00)15/01/2019 State Street Bank USD 1,635,134 JPY 184,619,088 (50,356) (0.00)15/01/2019 State Street Bank USD 2,408,240 JPY 269,478,478 (51,979) (0.01)15/01/2019 State Street Bank USD 2,210,598 JPY 248,240,029 (55,723) (0.01)

–––––––––––– ––––––––Total unrealised loss on forward foreign exchange contracts (293,993) (0.02)

–––––––––––– ––––––––Net loss on forward foreign exchange contracts (9,939,560) (0.79)

–––––––––––– ––––––––

Fair Value % of Net

Summary US$ Assets

Total investments at fair value through profit or loss 1,253,581,290 99.52Net loss on forward foreign exchange contracts 9,939,560 0.79Other assets 74,095 0.01Other liabilities (3,906,156) (0.32)

––––––––––––– ––––––––Total Net Assets 1,259,688,789 100.00

––––––––––––– ––––––––––––––––––––– ––––––––


Introduction

Pursuant to the European Alternative Investment Fund Managers Directive (Directive 2011/61/EU of the European Parliamentand the Council of the European Union, or “AIFMD”) Baring International Fund Managers (Ireland) Limited (“BIFMI”), as anAlternative Investment Fund Manager (“AIFM”), is required to periodically disclose certain information to investors in theAlternative Investment Funds (“AIFs”) for which it acts as the AIFM. This impacts Barings Global Investment Funds plc (“BGIF”)as an AIF managed by BIFMI and all Funds of this umbrella entity.

Periodic Reporting

In accordance with Article 23(4) of AIFMD and Articles 108 of Delegated Regulation (EU) No 231/2013, BIFMI is required todisclose to investors the following information at the same time as the annual report is made available to investors.

Sub-Fund Name Barings Global Loan Fund Barings European Loan Fund

Period covered by disclosures 01 Jan 2018 to 31 Dec 2018 01 Jan 2018 to 31 Dec 2018

Disclosure Item Response Response

The percentage of the AIF’s assets that are subject to special arrangements arising from their illiquid nature None None

Any new arrangements for managing the liquidity of the AIF None None

The current risk profile of the AIF Please see attached. There have Please see attached. There haveand the risk management systems been no changes to the risk profile been no changes to the risk profile employed by the AIFM to manage or risk management systems in the or risk management systems in the those risk period covered. period covered.

Note: For other sub funds of BGIF the disclosures are made to investors outside of the financial statements.

Important Information

This document is issued by Baring International Fund Managers (Ireland) Limited (“BIFMI”) and is designed for Investors in the Barings Global Investment FundsPlc (the “FUND”) and any relevant Sub-Fund(s).

The information in the document is confidential, is designed for persons who are classified as professional clients or eligible counterparties (within the meaning ofAnnex II of Directive 2004/39/EC (Markets in Financial Instruments Directive)) and should not be passed to or relied upon by retail clients or investors. This documentmay not be reproduced or circulated without prior permission. No statements or representations made in this document are legally binding on BIFMI or the recipient.

It should be noted that unless otherwise mentioned, the views contained in this document are those of BIFMI. The views and information contained in this documentare correct as at the publication date.


AIFMD Related Periodic Investor Reporting (unaudited)


Remuneration Disclosure

The Manager’s Remuneration Policy ensures the remuneration arrangements as defined in ESMA’s “Guidelines on SoundRemuneration Policy under the UCITS directive and AIFMD” (ESMA 2016/411) (the 'ESMA Guidelines'), (as amended) are:

(i) consistent with and promote sound and effective risk management and do not encourage risk-taking which isinconsistent with the risk profile, rules or constitution of the Manager or the Sub-Funds; and

(ii) consistent with the Manager’s business strategy, objectives, values and interests and includes measures to avoidconflicts of interest.

The Manager complies with the remuneration principles in a way and to the extent appropriate to its size and business.

Remuneration Committee

Due to the size and nature of the Manager, the Board of Directors considers it appropriate to dis-apply the requirement toappoint a remuneration committee.

The Manager forms part of the Barings Europe Limited (UK) group of companies (“Barings”). Barings has two remunerationcommittees to take remuneration decisions, namely the Remunerations Committee and the Senior Compensation Committee.The remuneration committees ensure the fair and proportionate application of the remuneration rules and ensures that potentialconflicts arising from remuneration are managed and mitigated appropriately.

Remuneration Code Staff

The Manager has determined its Remuneration Code Staff as the following:

1. Senior management

Senior Management comprises the Board of Directors.

2. Control Functions

All CBI Pre Approved Control Functions (“PCFs”) are included within the definition of Remuneration Code Staff. As at 31/12/18there were no PCFs.

3. Risk Takers

Risk Takers are defined as the investment managers of the UCITS and AIFs. Investment management is delegated to firmssubject to an equivalent remuneration regime and therefore the Manager currently has no risk takers outside of seniormanagement.

4. Employees in the same remuneration bracket as risk takers

The Manager will not treat a person as Remuneration Code Staff if a person’s professional activities do not have a materialimpact on the risk profiles of the firm or the Sub-Funds. Accordingly the Manager has no staff in this category.

5. Staff responsible for heading the investment management, administration, marketing and human resources

There are no staff in this category.


Disclosure of Remuneration (Unaudited)for the financial year ended 31 December 2018


Remuneration Disclosure

The disclosure below details fixed and variable remuneration paid to the Manager’s Remuneration Code Staff (for the financialyear end 31 December 2018).

Number of Total Total Fixed Total Variable

beneficiaries Remuneration Remuneration remuneration

Total remuneration paid by the Manager in relation to the Sub-Funds* 3 €77,448 €77,448 €0Total Senior Management Remuneration paid by the Manager** 3 €86,250 €86,250 €0

The Manager’s Remuneration Policy is reviewed annually both in respect of the general principles it contains and its ownimplementation. For 2018 the policy was updated to align it to the Barings group policy. The 2018 review resulted in somechanges to the remuneration approach and disclosure; no irregularities were identified.

The above disclosures are made in line with Barings' interpretation of currently available regulatory guidance on quantitativeremuneration disclosures. As market or regulatory practice develops, Barings may consider it appropriate to make changes tothe way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result indisclosures in relation to the Sub-Funds not being comparable to the disclosures made in the prior year, or in relation to otherBarings fund disclosures in that same year.

Notes:

**The Manager does not make any direct payments to staff who are paid by other Barings Group entities. Figures are calculated using the AUM of all Sub-Funds within the umbrella**as a proportion of Barings’ total AUM as at 31 December 2018. Accordingly the figures are not representative of any individual's actual remuneration. **Senior management remuneration is apportioned on the basis of the Manager’s total AUM as a proportion of Barings total AUM at 31 December 2018.

The Sub-Funds do not pay performance fees or award carried interest.

.


Disclosure of Remuneration (Unaudited)for the financial year ended 31 December 2018 (continued)


Overview of Risk Management Systems

Summary Organisational Features

The AIFMD related risk management for the sub-funds of Barings Global Investment Funds plc (“BGIF”) is carried out by theRisk Manager and risk management team, who form part of the Permanent Risk Management Function at Baring InternationalFund Managers (Ireland) Limited (“BIFMI”) and are independent of BIFMI’s operating units, including the portfolio managementteams. The Risk Manager reports to the Chief Risk Officer, who in turn reports to the Chief Executive Officer and the Board ofBIFMI.

Primary Risk Types

The sub-funds of BGIF invest primarily in fixed and floating rate sub-investment grade interest bearing corporate debtinstruments across a number of currencies. Examples of the types of risk to which the sub-funds of BGIF managed by BGA areexposed include:

• Market risks: including sensitivity of NAV to changes in interest rates, credit spreads and currency exchange rates,extent of leverage permitted/utilised

• Credit risks: including probability of default and loss on the debt instruments held by each sub-fund

• Liquidity risks: including cash requirements for investment and hedging settlements, and cash requirements forservicing redemption requests

• Counterparty risks: including those relating to open unsettled asset trades, and OTC derivative counterparty exposureon currency hedging trades

• Operational risks: including those relating to the volume of trade activity in the assets of a sub-fund and the sharesissued by a sub-fund, as well as the complexity of the asset types held by the sub-fund.

Risk Management Systems and Controls

For each sub-fund of BGIF, the Risk Manager works with the portfolio management teams to agree a set of quantitative andqualitative measures and limits which are used to identify, measure, manage and monitor the risks to which the AIFs areexposed. These measures and limits are set to be consistent with the risk profile of each sub-fund. The risk management teamassesses each measure and limit at a prescribed interval based on data sourced independently from the portfolio managementteams. The risk measures calculated are evaluated both as point in time data points and also in time series analysis to identifytrends and outliers. The risk management team also undertakes periodic stress tests and scenario analysis to evaluate theimpact of potential changes in interest rates, credit spreads and currency exchange rates that might adversely impact eachsub- fund.

The performance of the risk management function is reviewed by BIFMI’s board at least annually. Risk management policiesand procedures are also updated from time to time to reflect internal or external events (e.g. launching a new sub-fund) and toreflect any material changes made to the investment strategy and objectives of an existing sub-fund managed by BIFMI.


Risk Management Systems and Risk Profile Summary (unaudited)


Sub-Fund Specific Summary Risk Profile

Sub-Fund Name Barings Global Loan Fund

As at Date 31 December 2018

Summary Investment Objective The investment objective of the Fund is to achieve current income and, whereappropriate, capital appreciation. The Fund will seek to achieve its objective byinvesting primarily in senior secured loans and, to a lesser extent, senior securedbonds issued by North American and European companies (including those debtinstruments issued by issuing entities based in offshore centres, such as theChannel Islands, Cayman Islands, Bermuda, and other offshore jurisdictions).

The Fund’s debt investments will primarily be in senior secured loans (includingassignments and participations) and to a lesser extent in senior secured bonds,but may also include second lien loans, senior unsecured and subordinatedloans, senior and subordinated corporate debt obligations (such as bonds,debentures, notes and commercial paper), convertible debt obligations,preferred stock, and repurchase agreements.

Primary Asset Type(s) European and US leveraged loans

Degree of diversification Diversified

Rating Profile Generally sub-investment grade or unrated

Sensitivity of NAV to Interest Rate Risk Low – majority of investments are floating rate debt instruments with very low orno interest rate duration

Sensitivity of NAV to Credit Spread Risk Medium – prepayable nature of loans may help to reduce sensitivity

Sensitivity of NAV to Currency Movements Very Low – portfolio currency hedging and share class currency hedging carriedout

Extent of Leverage No leverage for investment purposes

Short term liquidity facility in place Yes

Dealing Frequency Daily

Redemption Notice Period 30 days


This document is issued by Baring International Fund Managers (Ireland) Limited (“BIFMI”) and is designed for Investors in the Barings Global Investment FundsPlc (the “FUND”) and any relevant Sub-Fund(s).




Risk Management Systems and Risk Profile Summary (unaudited) (continued)


Sub-Fund Specific Summary Risk Profile

Sub-Fund Name Barings European Loan Fund

As at Date 31 December 2018

Summary Investment Objective The investment objective of the Fund is to achieve current income and, whereappropriate, capital appreciation. The Fund will seek to achieve its objective byinvesting primarily in senior secured loans and, to a lesser extent, senior securednotes issued by European companies. The Fund will also invest to a lesser extentin senior secured loans and senior bonds issued by North American companies(subject to a limit of 20% of NAV).

The Fund’s debt investments will primarily be in senior secured loans andsecured floating-rate notes (including assignments and participations). Subjectto a limit of 20% of NAV, the Fund may also invest in instruments such as seniorsecured fixed rate notes, subordinated loans, senior unsecured loans, senior andsubordinated corporate debt obligations (such as bonds, debentures, notes andcommercial paper), convertible debt obligations, preferred stock, andrepurchase agreements.

Primary Asset Type(s) European leveraged loans

Degree of diversification Diversified

Rating Profile Generally sub-investment grade or unrated

Sensitivity of NAV to Interest Rate Risk Low – majority of investments are floating rate debt instruments with very low orno interest rate duration

Sensitivity of NAV to Credit Spread Risk Medium – prepayable nature of loans may help to reduce sensitivity

Sensitivity of NAV to Currency Movements Very Low – portfolio currency hedging and share class currency hedging carriedout

Extent of Leverage No leverage for investment purposes

Short term liquidity facility in place Yes

Dealing Frequency Daily

Redemption Notice Period 30 days


This document is issued by Baring International Fund Managers (Ireland) Limited (“BIFMI”) and is designed for Investors in the Barings Global Investment FundsPlc (the “Fund”) and any relevant Sub-Fund(s).




Risk Management Systems and Risk Profile Summary (unaudited) (continued)


Total Expense Ratio and Performance Data

Total Expense Ratio (“TER”)

The average TER table shows the actual expenses incurred by the Fund, expressed as an annualised percentage of theaverage (“Avg.”) Net Asset Value (“NAV”) of the Fund for the corresponding year.

Expense Expense

% of Avg. NAV % of Avg. NAV

Barings Global Loan Fund 31 Dec 2018 31 Dec 2017

Class A EUR Distribution Shares 0.49 0.50Class A GBP Accumulating Shares 0.49 0.50Class A GBP Distribution Shares 0.49 0.50Class A USD Accumulating Shares 0.48 0.49Class A USD Distribution Shares 0.48 0.49Class B CAD Accumulating Shares 0.56 0.57Class B CHF Accumulating Shares 0.57 0.57Class B CHF Distribution Shares 0.57 0.57Class B EUR Accumulating Shares 0.57 0.57Class B EUR Distribution Shares 0.57 0.57Class B GBP Accumulating Shares 0.57 0.57Class B GBP Distribution Shares 0.57 0.57Class B SEK Accumulating Shares 0.57 0.58Class B USD Accumulating Shares 0.56 0.56Class B USD Distribution Shares 0.56 0.56Class C AUD Distribution Shares 0.64 0.65Class C CHF Accumulating Shares 0.64 0.65Class C CHF Distribution Shares 0.64 0.65Class C EUR Accumulating Shares 0.64 0.65Class C EUR Distribution Shares 0.64 0.65Class C GBP Accumulating Shares 0.64 0.65Class C GBP Distribution Shares 0.64 0.65Class C SEK Accumulating Shares 0.64 0.65Class C USD Accumulating Shares 0.64 0.64Class C USD Distribution Shares 0.64 0.64Class D CHF Accumulating Shares 0.74 0.75Class D DKK Accumulating Shares 0.74 0.75Class D EUR Accumulating Shares 0.74 0.75Class D EUR Distribution Shares 0.74 0.75Class D GBP Distribution Shares 0.74 0.75Class D NOK Accumulating Shares 0.75 0.75Class D SEK Accumulating Shares 0.74 0.75Class D SEK Distribution Shares 0.74 0.75Class D USD Accumulating Shares 0.74 0.74Class D USD Distribution Shares 0.74 0.74Class E AUD Accumulating Shares 1.09 1.10Class E CAD Distribution Shares 1.09 1.10Class E CHF Accumulating Shares 1.10 1.10Class E EUR Accumulating Shares 1.09 -Class E EUR Distribution Shares - 1.10Class E GBP Accumulating Shares 1.09 1.10Class E GBP Distribution Shares 1.09 -Class E SGD Accumulating Shares 1.09 1.10Class E SGD Distribution Shares 1.09 1.10Class E USD Accumulating Shares 1.09 1.09Class E USD Distribution Shares 1.08 1.09Class F EUR Accumulating Shares 0.09 0.10Class F GBP Accumulating Shares 0.09 0.10Class F USD Accumulating Shares 0.08 0.09Class G USD Accumulating Shares 1.34 -Class G USD Distribution Shares 1.34 -Class N USD Distribution Shares - 0.56Class S USD Accumulating Shares 0.37 0.38


Total Expense Ratio and Performance Data (unaudited)


Total Expense Ratio and Performance Data (continued)

Total Expense Ratio (“TER”) (continued)

Expense Expense

% of Avg. NAV % of Avg. NAV

Barings European Loan Fund 31 Dec 2018 31 Dec 2017

Class A AUD Accumulating Shares 0.70 0.71Class A CHF Accumulating Shares 0.70 0.71Class A CHF Distribution Shares 0.70 0.71Class A DKK Distribution Shares 0.70 0.71Class A EUR Accumulating Shares 0.69 0.70Class A EUR Distribution Shares 0.69 0.70Class A GBP Accumulating Shares 0.70 0.71Class A GBP Distribution Shares 0.70 0.71Class A JPY Accumulating Shares 0.70 0.71Class A JPY Distribution Shares 0.70 -Class A SEK Accumulating Shares 0.70 -Class A SGD Accumulating Shares 0.70 0.71Class A USD Accumulating Shares 0.70 0.71Class A USD Distribution Shares 0.70 0.71Class B CHF Accumulating Shares 0.62 -Class B EUR Accumulating Shares 0.62 0.63Class B EUR Distribution Shares 0.62 0.63Class B GBP Accumulating Shares 0.63 0.64Class B GBP Distribution Shares 0.62 0.63Class B NOK Accumulating Shares 0.63 0.64Class B NOK Distribution Shares 0.62 0.63Class B USD Accumulating Shares 0.63 0.64Class B USD Distribution Shares 0.63 0.64Class C AUD Distribution Shares 0.80 0.81Class C CAD Accumulating Shares 0.80 0.81Class C CAD Distribution Shares 0.80 0.81Class C CHF Accumulating Shares 0.80 0.81Class C CHF Distribution Shares 0.80 0.81Class C EUR Accumulating Shares 0.79 0.80Class C EUR Distribution Shares 0.79 0.80Class C GBP Accumulating Shares 0.80 0.81Class C NOK Accumulating Shares 0.80 0.81Class C SEK Accumulating Shares 0.80 0.81Class C SGD Accumulating Shares 0.80 0.81Class C SGD Distribution Shares 0.80 0.81Class C USD Accumulating Shares 0.80 0.81Class C USD Distribution Shares 0.79 0.81Class E AUD Accumulating Shares 1.10 1.11Class E AUD Distribution Shares 1.10 1.11Class E CAD Accumulating Shares 1.10 1.11Class E CAD Distribution Shares 1.10 1.11Class E CHF Accumulating Shares 1.10 1.11Class E CHF Distribution Shares 1.10 1.11Class E EUR Accumulating Shares 1.09 1.10Class E EUR Distribution Shares 1.09 1.10Class E GBP Accumulating Shares 1.10 1.11Class E GBP Distribution Shares 1.10 1.11Class E SGD Accumulating Shares 1.10 1.11Class E SGD Distribution Shares 1.10 1.11Class E USD Accumulating Shares 1.10 1.11Class E USD Distribution Shares 1.10 1.11


Total Expense Ratio and Performance Data (unaudited) (continued)



Performance Data

Below is the historical performance data for the financial year ended 31 December 2018, 31 December 2017 and 31 December2016:

Net Return % Net Return % Net Return %

Barings Global Loan Fund 31 Dec 2018 31 Dec 2017 31 Dec 2016

Class A EUR Distribution Shares (1.94) 2.33 8.58Class A GBP Accumulation Shares (1.11) 4.41 12.10Class A GBP Distribution Shares (0.86) 3.03 9.12Class A USD Accumulation Shares 0.55 6.06 12.66Class A USD Distribution Shares 0.86 4.35 9.59Class B CAD Accumulation Shares (0.29) 3.99 2.36Class B CHF Accumulation Shares (2.69) 2.21 8.58Class B CHF Distribution Shares (2.51) 1.76 7.64Class B EUR Accumulation Shares (2.23) 2.76 9.30Class B EUR Distribution Shares (2.11) 2.16 8.13Class B GBP Accumulation Shares (1.18) 4.11 11.47Class B GBP Distribution Shares (0.94) 2.95 9.12Class B SEK Accumulation Shares* (2.31) (0.27) -Class B USD Accumulation Shares 0.49 5.39 11.39Class B USD Distribution Shares 0.79 4.25 9.48Class C AUD Distribution Shares 0.51 4.95 11.64Class C CHF Accumulation Shares (2.76) 2.21 8.84Class C CHF Distribution Shares* (2.58) 1.57 -Class C EUR Accumulation Shares (2.29) 2.86 9.80Class C EUR Distribution Shares (2.09) 2.02 7.77Class C GBP Accumulation Shares (1.28) 4.00 11.34Class C GBP Distribution Shares (1.01) 2.89 9.07Class C SEK Accumulation Shares (2.39) 2.39 8.79Class C USD Accumulation Shares 0.40 5.14 10.96Class C USD Distribution Shares 0.72 4.28 9.58Class D CHF Accumulation Shares (2.84) 2.04 8.56Class D CHF Distribution Shares** - - 7.54Class D DKK Accumulation Shares (2.58) 2.12 7.31Class D EUR Accumulation Shares (2.40) 2.56 9.05Class D EUR Distribution Shares (2.19) 2.01 8.07Class D GBP Distribution Shares (1.14) 2.73 8.75Class D NOK Accumulation Shares (1.11) 3.88 10.18Class D SEK Accumulation Shares (2.48) 2.18 8.27Class D SEK Distribution Shares (2.30) 1.83 7.80Class D USD Accumulation Shares 0.30 5.14 11.12Class D USD Distribution Shares 0.63 4.49 10.30Class E AUD Accumulation Shares (0.26) 5.23 11.97Class E GBP Accumulation Shares (0.55) - -Class E CAD Distribution Shares (3.20) 3.18 8.74Class E CHF Accumulation Shares* (2.72) 0.85 -Class E EUR Accumulation Shares (1.72) 9.44 8.22Class E EUR Distribution Shares** (1.40) - 7.71Class E SGD Accumulation Shares (0.80) 3.87 10.09Class E SGD Distribution Shares* (0.57) 3.49 -Class E USD Accumulation Shares (0.04) 4.29 9.86Class E USD Distribution Shares 0.27 3.82 8.76Class F EUR Accumulation Shares (1.76) 3.72 11.00Class F GBP Accumulation Shares (0.74) 4.45 11.31Class F USD Accumulation Shares 0.96 5.46 10.85





Performance Data (continued)


Barings Global Loan Fund (continued) 31 Dec 2018 31 Dec 2017 31 Dec 2016

Class G USD Accumulation Shares (1.01) - -Class G USD Distribution Shares 0.57 - -Class N USD Distribution Shares - 4.35 9.57Class S USD Accumulation Shares 0.73 6.92 13.96

**These share classes launched during the financial year ended 31 December 2017. Net Return % is calculated from launch date.**These share classes terminated during the financial year ended 31 December 2017.







Performance Data (continued)


Barings European Loan Fund 31 Dec 2018 31 Dec 2017 31 Dec 2016

Class A AUD Accumulation Shares 2.57 7.84 9.01Class A CHF Accumulation Shares (0.52) 4.73 6.11Class A CHF Distribution Shares (0.52) 3.90 6.21Class A DKK Distribution Shares (0.22) 4.00 5.81Class A EUR Accumulation Shares (0.03) 6.58 8.4Class A EUR Distribution Shares (0.05) 4.76 6.71Class A GBP Accumulation Shares 1.00 7.13 8.76Class A GBP Distribution Shares 0.99 5.04 6.83Class A JPY Accumulation Shares* 0.15 9.17 -Class A JPY Distribution Shares** (0.68) - -Class A SEK Accumulation Shares** (1.31) - -Class A SGD Accumulation Shares 1.96 6.49 4.37Class A USD Accumulation Shares 2.72 8.27 8.92Class A USD Distribution Shares 2.67 6.49 7.43Class B CHF Accumulation Shares** (1.56) - -Class B EUR Accumulation Shares 0.05 6.53 8.32Class B EUR Distribution Shares 0.07 4.55 6.37Class B GBP Accumulation Shares 1.10 7.21 8.9Class B GBP Distribution Shares 1.04 5.13 7.63Class B NOK Accumulation Shares 1.35 6.49 7.79Class B NOK Distribution Shares 1.33 5.60 6.63Class B USD Accumulation Shares 2.79 7.25 7.77Class B USD Distribution Shares 2.80 6.53 7.5Class C AUD Distribution Shares 2.38 6.71 8.55Class C CAD Accumulation Shares 1.87 6.90 7.97Class C CAD Distribution Shares 1.82 5.75 7.09Class C CHF Accumulation Shares (0.59) 4.51 5.89Class C CHF Distribution Shares (0.62) 3.70 5.31Class C EUR Accumulation Shares (0.13) 6.36 8.17Class C EUR Distribution Shares (0.16) 4.34 6.15Class C GBP Accumulation Shares 0.91 6.15 7.66Class C NOK Accumulation Shares 1.19 5.84 1.85Class C SEK Accumulation Shares (0.22) 4.27 0.05Class C SGD Accumulation Shares 1.88 7.05 8.38Class C SGD Distribution Shares 1.82 5.88 7.54Class C USD Accumulation Shares 2.60 7.94 8.56Class C USD Distribution Shares 2.60 6.32 7.28Class E AUD Accumulation Shares 2.15 8.01 9.41Class E AUD Distribution Shares 2.08 6.39 8.16Class E CAD Accumulation Shares 1.59 6.49 7.57Class E CAD Distribution Shares 1.53 5.50 6.85Class E CHF Accumulation Shares (0.89) 4.13 5.84Class E CHF Distribution Shares (0.90) 3.42 5.03Class E EUR Accumulation Shares (0.43) 4.80 6.31Class E EUR Distribution Shares (0.43) 3.91 5.69Class E GBP Accumulation Shares 0.62 5.63 7.05Class E GBP Distribution Shares 0.60 4.65 6.43Class E SGD Accumulation Shares 1.57 6.68 8.03Class E SGD Distribution Shares 1.53 5.55 7.20Class E USD Accumulation Shares 2.31 7.18 7.80Class E USD Distribution Shares 2.30 5.99 6.93

**These share classes launched during the financial year ended 31 December 2017. Net Return % is calculated from launch date.**These share classes launched during the financial year ended 31 December 2018. Net Return % is calculated from launch date.

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