BARINGS CORPORATE INVESTORS REPORTS PRELIMINARY FIRST QUARTER 2022 RESULTS AND ANNOUNCES QUARTERLY CASH DIVIDEND OF $0.24 PER SHARE

Rhea-AI Summary

The Board of Trustees of Barings Corporate Investors (MCI) reported preliminary financial results for Q1 2022, revealing a net investment income of $4.3 million ($0.21 per share) and a net increase in net assets from operations of $3.2 million ($0.16 per share). The Trust declared a quarterly cash dividend of $0.24 per share, payable on June 10, 2022. Total net assets reached $341.3 million as of March 31, 2022, with a net asset value per share of $16.84. The Trust's performance in the quarter also included eight new investments totaling $13.2 million.

Positive

• Net investment income increased to $4.3 million ($0.21 per share) compared to $6.1 million in the previous quarter.
• Quarterly dividend of $0.24 per share declared, payable on June 10, 2022.
• Net assets increased to $341.3 million, with NAV per share rising to $16.84.

Negative

• Net realized gains were only $0.3 million this quarter, a recovery from a $3.3 million loss in the previous quarter.
• Net unrealized depreciation of $1.4 million negatively impacted net asset value.

CHARLOTTE, N.C., May 19, 2022 /PRNewswire/ -- The Board of Trustees of Barings Corporate Investors (NYSE: MCI) (the "Trust") met on May 19, 2022 and would like to report its preliminary financial results for the first quarter of 2022.

Financial Highlights	Three Months Ended March 31, 2022		Three Months Ended December 31, 2021
	Total Amount	Per Share(3)	Total Amount	Per Share(3)
Net investment income(1)	$ 4,284,605	$ 0.21	$ 6,054,093	$ 0.30
Net realized gains / (losses)(2)	$ 293,278	$ 0.01	$ (3,287,600)	$ (0.16)
Net unrealized appreciation /(depreciation)	$ (1,362,060)	$ (0.07)	$ 3,138,727	$ 0.15
Net increase in net assets resulting from operations	$ 3,215,823	$ 0.16	$ 5,905,220	$ 0.29
Total net assets (equity)	$ 341,256,927	$ 16.84	$ 338,041,104	$ 16.68

(1)	December 31, 2021 figures net of approximately $0.03 per share of excise tax. March 31, 2022 figures net of approximately $0.01 per share of excise tax.
(2)	December 31, 2021 figures net of approximately $0.10 per share of capital gains tax.
(3)	Based on shares outstanding at the end of the period of 20,261,719

Key Highlights:

Commenting on the quarter, Christina Emery, President, stated, "During the first quarter, Barings continued to drive origination flow into high quality, 1st lien senior secured middle-market investments. When constructing portfolios, we focus on investing in high-quality businesses that are leaders in their space and offer defensive characteristics that will allow them to perform through cycles."

During the three months ended March 31, 2022, the Trust reported total investment income of $6.0 million, net investment income of $4.3 million, or $0.21 per share, and a net increase in net assets resulting from operations of $3.2 million, or $0.16 per share.

Net asset value ("NAV") per share as of March 31, 2022 was $16.84, as compared to $16.68 as of December 31, 2021. The increase in NAV per share was primarily attributable to net investment income of $0.21 per share, partially offset by unrealized depreciation of $0.07 per share.

The Board of Trustees declared a quarterly dividend of $0.24 per share payable on June 10, 2022 to shareholders of record on May 31, 2022. 

On April 18, 2022, the Board of Trustees also approved the continuance of the Trust's current Investment Services Contract with Barings LLC.

The next scheduled meeting of the Board of Trustees will be held on August 18, 2022.

Recent Portfolio Activity

During the three months ended March 31, 2022, the Trust made eight new investments totaling $13.2 million and 10 add-on investments in existing portfolio companies totaling $2.2 million. During the three months ended March 31, 2022, the Trust had one mezzanine term loan repaid at par totaling $0.5 million and realized two equity investments totaling less than $0.1 million.

Liquidity and Capitalization

As of March 31, 2022, the Trust had cash of $14.6 million and $42.0 million of borrowings outstanding. The Trust had unfunded commitments of $23.8 million as of March 31, 2022.  

Net Capital Gains

The Trust realized net capital gains of $0.3 million or $0.01 per share during the quarter ended March 31, 2022. During the quarter ended December 31, 2021, the Trust realized net capital losses of $3.3 million or $0.16 per share.

Annual Meeting

At the Annual Meeting, which was held virtually on May 19, 2022, shareholders elected Susan B. Sweeney as an Independent Trustee and David M. Mihalick as an Interested Trustee for three-year terms.

About Barings Corporate Investors

Barings Corporate Investors is a closed-end management investment company advised by Barings LLC.  Its shares are traded on the New York Stock Exchange under the trading symbol ("MCI").

About Barings LLC

Barings is a $371+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.

*Assets under management as of March 31, 2022

Contact

MediaRelations@barings.com

Per share amounts are rounded to the nearest cent.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

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

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SOURCE Barings

FAQ

What are the financial results of Barings Corporate Investors for Q1 2022?

Barings Corporate Investors reported a net investment income of $4.3 million and a net increase in net assets of $3.2 million for Q1 2022.

What is the dividend amount for Barings Corporate Investors in 2022?

The Trust declared a quarterly dividend of $0.24 per share, payable on June 10, 2022.

What was the net asset value (NAV) per share for MCI at the end of Q1 2022?

The NAV per share for Barings Corporate Investors was $16.84 as of March 31, 2022.

How much new investment did Barings Corporate Investors make in Q1 2022?

In Q1 2022, Barings Corporate Investors made eight new investments totaling $13.2 million.

What challenges did Barings Corporate Investors face in Q1 2022?

The Trust experienced net unrealized depreciation of $1.4 million, which negatively impacted its net asset value.