Edgar Filing: BARINGS CORPORATE INVESTORS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-2183

	Barings Corporate Investors
	(Exact name of registrant as specified in charter)

	1500 Main Street, P.O. Box 15189, Springfield, MA 01115-5189
	(Address of principal executive offices) (Zip code)

	Janice M. Bishop, Vice President, Secretary and Chief Legal Officer Indepence Wharf, 470 Atlantic Ave., Boston, MA 02210
	(Name and address of agent for service)

Registrant's telephone number, including area code: 413-226-1000

Date of fiscal year end: 12/31

Date of reporting period: 12/31/16

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507.

ITEM 1. REPORT TO STOCKHOLDERS.

Attached hereto is the annual shareholder report transmitted to shareholders pursuant to Rule 30e-1 of the Investment Company Act of 1940, as amended.

BARINGS CORPORATE INVESTORS

Barings Corporate Investors is a closed-end investment company, first offered to the public in 1971, whose shares are traded on the New York Stock Exchange.

INVESTMENT OBJECTIVE & POLICY

Barings Corporate Investors (the "Trust") is a closed-end management investment company, first offered to the public in 1971, whose shares are traded on the New York Stock Exchange under the trading symbol "MCI". The Trust's share price can be found in the financial section of newspapers under either the New York Stock Exchange listings or Closed-End Fund Listings.

The Trust's investment objective is to maintain a portfolio of securities providing a fixed yield and at the same time offering an opportunity for capital gains. The Trust's principal investments are privately placed, below-investment grade, long-term debt obligations. Such direct placement securities may, in some cases, be accompanied by equity features such as warrants, conversion rights, or other equity features and, occasionally, preferred stocks. The Trust typically purchases these investments, which are not publicly tradable, directly from their issuers in private placement transactions. These investments are typically mezzanine debt instruments with accompanying private equity securities made to small or middle market companies. In addition, the Trust may invest, subject to certain limitations, in marketable investment grade debt securities, other marketable debt securities (including high yield securities) and marketable common stocks. Below-investment grade or high yield securities have predominantly speculative characteristics with respect to the capacity of the issuer to pay interest and repay principal.

Barings LLC ("Barings") manages the Trust on a total return basis. The Trust distributes substantially all of its net income to shareholders each year.

Accordingly, the Trust pays dividends to shareholders four times a year in January, May, August, and November. The Trust pays dividends to its shareholders in cash, unless the shareholder elects to participate in the Dividend Reinvestment and Share Purchase Plan.

In this report, you will find a complete listing of the Trust's holdings. We encourage you to read this section carefully for a better understanding of the Trust. We cordially invite all shareholders to attend the Trust's Annual Meeting of Shareholders, which will be held on April 21, 2017 at 1:00 P.M. in Springfield, Massachusetts.

PROXY VOTING POLICIES & PROCEDURES;
PROXY VOTING RECORD

The Trustees of the Trust have delegated proxy voting responsibilities relating to the voting of securities held by the Trust to Barings. A description of Barings' proxy voting policies and procedures is available (1) without charge, upon request, by calling, toll-free 1-866-399-1516; (2) on the Trust's website at http://www.barings.com/mci; and (3) on the U.S. Securities and Exchange Commission's ("SEC") website at http://www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, 2016 is available (1) on the Trust's website at http://www.barings.com/mci; and (2) on the SEC's website at http://www.sec.gov.

FORM N-Q

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This information is available (i) on the SEC's website at http://www.sec.gov; and (ii) at the SEC's Public Reference Room in Washington, DC (which information on their operation may be obtained by calling 1-800-SEC-0330). A complete schedule of portfolio holdings as of each quarter-end is available on the Trust's website at http://www.barings.com/mci or upon request by calling, toll-free, 1-866-399-1516.

BARINGS CORPORATE INVESTORS

c / o Barings LLC

1500 Main Street

P.O. Box 15189

Springfield, Massachusetts 01115-5189

(413) 226-1516

http://www.barings.com/mci

ADVISER

Barings LLC

1500 Main Street, P.O. Box 15189

Springfield, Massachusetts 01115-5189

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

KPMG LLP

Boston, Massachusetts 02111

COUNSEL TO THE TRUST

Ropes & Gray LLP

Boston, Massachusetts 02111

CUSTODIAN

State Street Bank and Trust Company

Boston, MA 02110

TRANSFER AGENT & REGISTRAR

DST Systems, Inc.

P.O. Box 219086

Kansas City, MO 64121-9086

1-800-647-7374

2016 Annual Report

PORTFOLIO COMPOSITION AS OF 12/31/16*

TOTAL ANNUAL PORTFOLIO RETURN (AS OF 12/31 EACH YEAR)*

Data for Barings Corporate Investors (the "Trust") represents returns based on the change in the Trust's net asset value (net of all fees and expenses) assuming the reinvestment of all dividends and distributions. These returns differ from the total investment return based on market value of the Trust's shares due to the difference between the Trust's net asset value of its shares outstanding (See page 12 for total investment return based on market value). Past performance is no guarantee of future results.

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

TO OUR SHAREHOLDERS

I am pleased to share with you the Trust's Annual Report for the year ended December 31, 2016.

PORTFOLIO PERFORMANCE

The Trust's net total portfolio rate of return for 2016 was 10.1%, as measured by the change in net asset value assuming the reinvestment of all dividends and distributions. The Trust's total net assets were $281,570,891 or $14.23 per share, as of December 31, 2016. This compares to $275,915,289 or $14.03 per share, as of December 31, 2015. The Trust paid a quarterly dividend of $0.30 per share for each of the four quarters of 2016, for a total annual dividend of $1.20 per share. In 2015, the Trust also paid four quarterly dividends of $0.30 per share, for a total annual dividend of $1.20 per share. Net taxable investment income for 2016 was $1.21 per share, including approximately $0.16 per share of non-recurring income, compared to 2015 net taxable investment income of $1.21 per share, which included approximately $0.27 per share of non-recurring income.

The Trust's stock price decreased 10.3% during 2016, from $17.25 as of December 31, 2015 to $15.48 as of December 31, 2016. The Trust's stock price of $15.48 as of December 31, 2016 equates to a 8.8% premium over the December 31, 2016 net asset value per share of $14.23. The Trust's average quarter-end premium for the
3-, 5-, 10- and 25-year periods ended December 31, 2016 was 11.1%, 14.8%, 13.0%, and 6.2%, respectively.

The table below lists the average annual net returns of the Trust's portfolio, based on the change in net assets and assuming the reinvestment of all dividends and distributions. Average annual returns of the Barclays U.S. Corporate High Yield Index and the Russell 2000 Index for the 1-, 3-, 5-, 10- and 25-year periods ended December 31, 2016 are provided for comparison purposes only.

	The Trust	Barclays Capital U.S. Corporate High Yield Index	Russell 2000 Index

1 Year	10.13%	17.13%	21.32%

3 Years	9.99%	4.66%	6.74%

5 Years	11.93%	7.36%	14.46%

10 Years	9.98%	7.45%	7.07%

25 Years	13.57%	8.04%	9.69%

Past performance is no guarantee of future results.

PORTFOLIO ACTIVITY

In 2016, the Trust closed 15 new private placement investments, as well as 10 "add-on" investments in existing portfolio companies. The 15 new investments were in AM Conservation Holding Corp; API Technologies Corp.; CORA Health Services, Inc.; Del Real LLC; Dunn Paper; Elite Sportswear Holding, LLC; Glynlyon Holding Companies, Inc.; Happy Floors Acquisition, Inc.; Midwest Industrial Rubber, Inc.; Money Mailer Equity LLC; NSi Industries Holdings, Inc.; PANOS Brands LLC; Software Paradigms International Group, LLC; Veritext Corporation and Wolf-Gordon, Inc. In addition, the Trust added to existing private placement investments in Church Services Holding Company; Clarion Brands Holding Corp.; CTM Holding, Inc.; ERG Holding Company LLC; Hollandia

2016 Annual Report

Produce LLC; HVAC Holdings, Inc.; JMH Investors LLC; Merex Holding Corporation; Petroplex Inv Holdings LLC and PPC Event Services. A brief description of these investments can be found in the Consolidated Schedule of Investments. The total amount invested by the Trust in these transactions was $55,320,585, which was only slightly less than the $55,820,480 of new private placement investments made by the Trust in 2015, and the third highest dollar volume over the past ten years. We are pleased to have generated strong new investment volume for the Trust three years in a row.

The Trust's level of new investment activity in 2016 benefited from larger average transaction sizes as compared to 2015, a steady flow of investment opportunities from an established network of private equity sponsors, and several follow-on investments in companies which the Trust had an existing investment. After spending most of 2016 at levels below prior year, middle market buyout volume ended the year flat compared to 2015, due to strong fourth quarter activity, particularly at the upper end of the middle market. Competition for new investment opportunities remains intense, as there continues to be an ever increasing abundance of private debt and equity capital looking to be invested. As a result, attractive companies are being aggressively pursued by both buyers and lenders alike. As a result, high purchase multiples and leverage levels continue to be prevalent in the market. In 2016, average purchase price multiples for middle market companies decreased modestly (approximately 3%) but remain higher than any year since 2000 (other than 2015). Average leverage multiples also remained elevated in 2016, albeit modestly lower than 2015. However, the average leverage multiple steadily increased each quarter during 2016 resulting in the fourth quarter average being the fourth highest since 2003.

Though we remained very active investors on behalf of the Trust in 2016, we did so, and will continue to do so, cautiously and with discipline, consistent with our longstanding investment philosophy of seeking to take prudent levels of risk and getting paid appropriately for the risk taken. In 2016, in the face of these aggressive market conditions, we continued our history of investing in companies at lower than market leverage levels. The average leverage of the Trust's new private placement investments in 2016 was 4.9 times EBITDA, compared to the average market multiple of 5.3 times EBITDA. This approach has served us well over the long term and through all kinds of market cycles.

In addition to strong new investment activity, the condition of the Trust's existing portfolio remained solid throughout the year. Sales and earnings for the Trust's portfolio companies as a whole continued their upward momentum. In addition, the number of companies on our watch list or in default remained at acceptable levels in 2016.

We had 19 companies exit from the Trust's portfolio during 2016. This level of exit activity remains relatively high for the Trust's portfolio, especially after the unprecedented 32 exits experienced in 2014 and 21 exits in 2015, and is another indicator of how active and aggressive the markets continued to be in 2016. In all but four of these exits, the Trust realized a positive return on its investment. Of note, 14 of the 19 exits in 2016 were the realization of stub equity holdings in companies where the interest bearing debt securities had previously been prepaid.

During 2016, the Trust had five portfolio companies fully or partially prepay their debt obligations. The level of refinancing activity in the portfolio in 2016 was notably lower than in each of the prior three years when prepayments numbered 15, 20, and 32 in 2015, 2014, and 2013, respectively. These transactions, in which the debt instruments held by the Trust were fully or partially prepaid, are generally driven by performing companies seeking to take advantage of lower interest rates and the abundant availability of debt capital. Unless replaced by new private debt investments, these prepayments reduce net investment income.

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

As a result of the level of new investment activity, combined with the composition of the realizations (majority being the sale of non-cash pay equity securities) and lower level of prepayments, the Trust's recurring net investment income, increased nearly 14% to $1.05 per share as compared to $0.92 per share in 2015.

OUTLOOK FOR 2017

As we enter 2017, the pipeline of investment opportunities remains relatively healthy. The market appears optimistic that the new Presidential administration will result in a favorable economic environment, particularly for middle market companies, the very type of companies in which we focus our investment activities. Various surveys of middle market investment banks and capital providers would suggest the same. However, as previously mentioned, the market dynamics have, and are expected to continue to remain aggressive. And while there is much economic optimism, there is also a level of uncertainty that always comes with changes in governmental leadership. Rest assured that despite constantly changing market conditions, we will continue to employ on behalf of the Trust the same investment philosophy that has served it well since its inception: investing in companies which we believe have a strong business proposition, solid cash flow, and experienced, ethical management. We believe this philosophy, along with Barings' seasoned investment management team, positions the Trust well to meet its long-term investment objectives.

The Trust was able to maintain its $0.30 per share quarterly dividend in 2016 for a total annual dividend of $1.20 per share. However, it was once again necessary to supplement recurring investment income in each quarter of 2016 with non-recurring income and earnings carry forward in order to maintain the $1.20 per share annual dividend. As has been discussed in prior reports, recurring investment income alone has not been sufficient, and while improving, is not projected to be sufficient in the near term, to fully fund the current dividend rate. Net investment income has been below the dividend rate since 2013 due principally to the considerable reduction in the number of private debt securities in the portfolio resulting from the high level of exits and prepayment activity that occurred from 2013 through 2015, combined with generally lower investment returns available due to market and competitive dynamics over the past several years. As mentioned above, we made good progress in growing recurring investment income in 2016, but it remains below the dividend rate and will continue to require supplementation from non-recurring income in the near term. The level of expected recurring investment income generated by the Trust in 2017, combined with the availability of earnings carry forwards and other non-recurring income, maintenance of the current dividend rate over the next several quarters is expected. But over time, the Trust's dividend paying ability tends to be correlated with its recurring earnings capacity. As such, until recurring investment income reaches a level equal to the current dividend rate, there is the risk that the dividend may need to be reduced in the future.

As always, I would like to thank you for your continued interest in and support of Barings Corporate Investors. I look forward to seeing you at the Trust's annual shareholder meeting in Springfield on April 21, 2017.

Sincerely,

Robert M. Shettle

President

2016 Annual Report

2016 Dividends	Record Date	Total Paid	Ordinary Income	Short-Term Gains	Long-Term Gains
Regular	5/2/2016	0.3000	0.3000	—	—
Regular	8/1/2016	0.3000	0.3000	—	—
Regular	11/7/2016	0.3000	0.3000	—	—
Regular	12/30/2016	0.3000	0.3000	—	—
		$1.2000	$1.2000	$0.0000	$0.0000

The following table summarizes the tax effects of the relation of capital gains for 2016:

	Amount per Share	Form 2439
2016 Gains Retained	0.1140	Line 1a
Long-Term Gains Retained	0.1140
Taxes Paid	0.0399	Line 2*
Basis Adjustment	0.0741	**

*	If you are not subject to federal capital gains tax (e.g. charitable organizations, IRAs and Keogh Plans) you may be able to claim a refund by filing Form 990-T.

**	For federal income tax purposes, you may increase the adjusted cost basis of your shares by this amount (the excess of Line 1a over Line 2).

Annual Dividend	Qualified for Dividend Received Deduction***		Qualified Dividends****		Interest Earned on U.S. Gov't. Obligations
Amount Per Share	Percent	Amount Per Share	Percent	Amount Per Share	Percent	Amount Per Share
$ 1.20	13.4944%	0.1479	13.4944%	0.1479	0%	0.0000

***	Not available to individual shareholders

****	Qualified dividends are reported in Box 1b on IRS Form 1099-Div for 2016

BARINGS CORPORATE INVESTORS Financial Report


Consolidated Statement of Assets and Liabilities	7

Consolidated Statement of Operations	8

Consolidated Statement of Cash Flows	9

Consolidated Statements of Changes in Net Assets	10

Consolidated Selected Financial Highlights	11

Consolidated Schedule of Investments	12-40

Notes to Consolidated Financial Statements	41-48

Report of Independent Registered Public Accounting Firm	49

Interested Trustees	50-51

Independent Trustees	52-53

Officers of the Trust	54

2016 Annual Report

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

December 31, 2016


Assets:
Investments
(See Consolidated Schedule of Investments)
Corporate restricted securities at fair value
(Cost - $205,902,622)	$	201,207,921
Corporate restricted securities at market value
(Cost - $56,286,708)		56,486,517
Corporate public securities at market value
(Cost - $33,455,796)		35,319,275
Short-term securities at amortized cost		10,898,470

Total investments (Cost - $306,543,596)		303,912,183

Cash		14,289,230
Interest receivable		3,713,676
Other assets		26,783

Total assets		321,941,872

Liabilities:
Note payable		30,000,000
Dividend payable		5,937,122
Tax payable		2,144,159
Deferred tax liability		1,013,201
Investment advisory fee payable		879,909
Interest payable		202,400
Accrued expenses		194,190

Total liabilities		40,370,981

Total net assets	$	281,570,891


Net Assets:
Common shares, par value $1.00 per share	$	19,790,407
Additional paid-in capital		111,042,303
Retained net realized gain on investments, prior years		145,980,019
Undistributed net investment income		1,579,139
Accumulated net realized gain on investments		6,823,547
Net unrealized depreciation of investments		(3,644,614	)

Total net assets	$	281,570,891

Common shares issued and outstanding (28,054,782 authorized)		19,790,407

Net asset value per share	$	14.23

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED STATEMENT OF OPERATIONS

For the year ended December 31, 2016


Investment Income:
Interest	$	26,574,892
Dividends		1,038,025
Other		569,890

Total investment income		28,182,807


Expenses:
Investment advisory fees		3,566,151
Interest		1,584,000
Trustees' fees and expenses		340,000
Professional fees		131,710
Reports to shareholders		84,000
Custodian fees		19,068
Other		286,039

Total expenses		6,010,968

Investment income - net		22,171,839


Net realized and unrealized gain on investments:
Net realized gain on investments before taxes		5,989,120
Income tax expense		(2,277,985	)

Net realized gain on investments after taxes		3,711,135

Net increase (decrease) in unrealized appreciation (depreciation) of investments before taxes		1,242,106
Net (increase) decrease in deferred income tax expense		114,976

Net increase (decrease) in unrealized appreciation (depreciation) of investments after taxes		1,357,082

Net gain on investments		5,068,217

Net increase in net assets resulting from operations	$	27,240,056

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended December 31, 2016


Net increase in cash:

Cash flows from operating activities:
Purchases/Proceeds/Maturities from short-term portfolio securities, net	$	(3,970,079	)
Purchases of portfolio securities		(88,965,684	)
Proceeds from disposition of portfolio securities		102,536,585
Interest, dividends and other income received		24,956,934
Interest expense paid		(1,584,000	)
Operating expenses paid		(4,541,197	)
Income taxes paid		(1,524,058	)

Net cash provided by operating activities		26,908,501


Cash flows from financing activities:
Cash dividends paid from net investment income		(23,650,298	)
Receipts for shares issued on reinvestment of dividends		2,103,555

Net cash used for financing activities		(21,546,743	)

Net increase in cash		5,361,758

Cash - beginning of year		8,927,472

Cash - end of year	$	14,289,230


Reconciliation of net increase in net assets to net cash provided by operating activities:

Net increase in net assets resulting from operations	$	27,240,056

Increase in investments		(691,890	)
Increase in interest receivable		(203,798	)
Decrease in other assets		39,411
Increase in tax payable		753,927
Decrease in deferred tax liability		(114,976	)
Increase in investment advisory fee payable		17,674
Decrease in accrued expenses		(131,903	)

Total adjustments to net assets from operations		(331,555	)

Net cash provided by operating activities	$	26,908,501

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS


	2016			2015
Increase in net assets:

Operations:
Investment income - net	$	22,171,839		$	20,423,963
Net realized gain on investments after taxes		3,711,135			1,884,370
Net change in unrealized appreciation/(depreciation) of investments after taxes		1,357,082			(5,025,211	)

Net increase in net assets resulting from operations		27,240,056			17,283,122

Increase from common shares issued on reinvestment of dividends
Common shares issued (2016 - 125,703; 2015 - 131,288)		2,103,555			2,041,729

Dividends to shareholders from:
Net investment income (2016 - $1.20 per share; 2015 - $1.20 per share)		(23,688,009	)		(23,539,826	)

Total increase/(decrease) in net assets		5,655,602			(4,214,975	)

Net assets, beginning of year		275,915,289			280,130,264

Net assets, end of year (including undistributed net investment income of $1,579,139 and $4,260,165, respectively)	$	281,570,891		$	275,915,289

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS

Selected data for each share of beneficial interest outstanding:

	For the years ended December 31,
	2016			2015			2014			2013			2012

Net asset value:
Beginning of year	$	14.03		$	14.34		$	13.85		$	13.38		$	12.69

Net investment income (a)		1.12			1.04			1.23			1.18			1.28
Net realized and unrealized gain (loss) on investments		0.26			(0.16	)		0.45			0.48			0.69

Total from investment operations		1.38			0.88			1.68			1.66			1.97

Dividends from net investment income to common shareholders		(1.20	)		(1.20	)		(1.20	)		(1.20	)		(1.25	)
Dividends from realized gain on investments to common shareholders		—			—			—			—			(0.05	)
Increase from dividends reinvested		0.02			0.01			0.01			0.01			0.02

Total dividends		(1.18	)		(1.19	)		(1.19	)		(1.19	)		(1.28	)

Net asset value: End of year	$	14.23		$	14.03		$	14.34		$	13.85		$	13.38

Per share market value: End of year	$	15.48		$	17.25		$	15.89		$	14.93		$	15.28

Total investment return
Net asset value (b)		10.13%			6.20%			13.78%			12.76%			17.07%
Market value (b)		(3.49%	)		17.01%			16.53%			5.93%			(7.11%	)
Net assets (in millions):
End of year	$	281.57		$	275.92		$	280.13		$	268.69		$	257.38
Ratio of total expenses to average net assets		2.92%			2.56%			3.66%			2.42%			3.17%
Ratio of operating expenses to average net assets		1.56%			1.67%			1.65%			1.64%			1.66%
Ratio of interest expense to average net assets		0.56%			0.55%			0.57%			0.59%			0.63%
Ratio of income tax expense to average net assets (c)		0.80%			0.34%			1.44%			0.19%			0.88%
Ratio of net investment income to average net assets		7.80%			7.12%			8.57%			8.50%			9.78%
Portfolio turnover		29%			29%			38%			34%			34%

(a)	Calculated using average shares.

(b)

Net asset value return represents portfolio returns based on change in the Trust's net asset value assuming the reinvestment of all dividends and distributions which differs from the total investment return based on the Trust's market value due to the difference between the Trust's net asset value and the market value of its shares outstanding; past performance is no guarantee of future results.

(c)

As additional information, this ratio is included to reflect the taxes paid on retained long-term gains. These taxes paid are netted against realized capital gains in the Statement of Operations. The taxes paid are treated as deemed distributions and a credit for the taxes paid is passed on to the shareholders.

Senior borrowings:

Total principal amount (in millions)	$	30	$	30	$	30	$	30	$	30

Asset coverage per $1,000 of indebtedness	$	10,386	$	10,197	$	10,338	$	9,956	$	9,579

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2016


	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value
Corporate Restricted Securities - 91.52%: (A)

Private Placement Investments - 71.46%: (C)

1492 Acquisition LLC
A leading producer of premium Italian cured meats and deli meats in the U.S.
Limited Liability Company Unit Class A Preferred (B)	245 uts.		10/17/12		$	245,450	$	335,660
Limited Liability Company Unit Class A Common (B)	27,273 uts.		10/17/12			27,273		368,971

						272,723		704,631


ABC Industries, Inc.
A manufacturer of mine and tunneling ventilation products in the U.S.
13% Senior Subordinated Note due 07/31/2019	$	334,091	08/01/12			316,744		329,009
Preferred Stock Series A (B)	300,000 shs.		08/01/12			300,000		474,201
Warrant, exercisable until 2022, to purchase common stock at $.02 per share (B)	53,794 shs.		08/01/12			101,870		79,094

						718,614		882,304


Advanced Manufacturing Enterprises LLC
A designer and manufacturer of large, custom gearing products for a number of critical customer applications.
Limited Liability Company Unit (B)	4,669 uts.			*		498,983		—

* 12/07/12, 07/11/13 and 06/30/15.


AFC - Dell Holding Corporation
A distributor and provider of inventory management services for "C-Parts" used by OEMs in their manufacturing and production facilities.
12.5% (1% PIK) Senior Subordinated Note due 09/27/2020	$	2,441,538	03/27/15			2,405,501		2,490,369
Preferred Stock (B)	2,276 shs.		03/27/15			227,558		228,273
Common Stock (B)	703 shs.		03/27/15			703		—

						2,633,762		2,718,642


Airxcel Holdings
A leading manufacturer of a broad range of climate control solutions, including air-conditioners, heat pumps, cooking appliances, furnaces, powered vents, and water heaters.
12.5% (1.5% PIK) Senior Subordinated Note due 11/18/2020	$	3,011,052	11/18/14			2,968,482		3,011,052
Limited Liability Company Unit	583 uts.		11/18/14			583,000		1,031,760

						3,551,482		4,042,812

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

AM Conservation Holding Corp
A supplier of energy efficiency ("EE") products, including lighting, shower heads and aerators, and weatherization products such as door seals and weather stripping.
11.75% (1.5% PIK) Senior Subordinated Note due 04/30/2023	$	3,190,038	10/31/16		$	3,127,515	$	3,156,412
Common Stock	318,182 shs.		10/31/16			318,182		318,182

						3,445,697		3,474,594


AMS Holding LLC
A leading multi-channel direct marketer of high-value collectible coins and proprietary-branded jewelry and watches.
Limited Liability Company Unit Class A Preferred (B) (F)	273 uts.		10/04/12			272,727		611,133


API Technologies Corp.
A designer, developer and manufacturer of electronic systems, subsystems, modules and secure communications for technically demanding defense, aerospace and commercial applications in the U.S. and internationally.
12% (1% PIK) Senior Subordinated Note due 04/22/2023	$	2,819,320	04/22/16			2,778,756		2,825,505
Limited Liability Company Unit (B)	0.90% int.		04/20/16			700,000		539,000

						3,478,756		3,364,505


ARI Holding Corporation
A leading national supplier of products used primarily by specialty contractors.
11.5% (0.5% PIK) Senior Subordinated Note due 02/01/2020	$	3,426,224		*		3,391,971		3,426,224
Limited Partnership Interest	1,048 uts.		08/01/14			1,047,900		1,298,514

* 05/21/13 and 08/01/14.						4,439,871		4,724,738


ASC Holdings, Inc.
A manufacturer of capital equipment used by corrugated box manufacturers.
13% (1% PIK) Senior Subordinated Note due 05/18/2021	$	1,519,209	11/19/15			1,493,643		1,498,333
Limited Liability Company Unit (B)	225,300 uts.		11/18/15			225,300		70,294

						1,718,943		1,568,627

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Aurora Parts & Accessories LLC
A distributor of aftermarket over-the-road semi-trailer parts and accessories sold to customers across North America.
11% Senior Subordinated Note due 02/17/2022	$	3,074,700	08/17/15		$	3,024,856	$	3,115,602
Preferred Stock (B)	425 shs.		08/17/15			424,875		354,346
Common Stock (B)	425 shs.		08/17/15			425		—

						3,450,156		3,469,948


Avantech Testing Services LLC
A manufacturer of custom Non-Destructive Testing ("NDT") systems and provider of NDT and inspections services primarily to the oil country tubular goods market.
15% (3.75% PIK) Senior Subordinated Note due 01/31/2021 (D)	$	1,015,684	07/31/14			996,694		—
Limited Liability Company Unit (B) (F)	92,327 uts.			*		—		—

* 07/31/14 and 10/14/15.						996,694		—


Blue Wave Products, Inc.
A distributor of pool supplies.
10% Senior Secured Term Note due 09/30/2018	$	312,766	10/12/12			310,537		312,766
13% (1% PIK) Senior Subordinated Note due 09/30/2019	$	745,685	10/12/12			718,442		745,685
Common Stock (B)	114,894 shs.		10/12/12			114,894		522,426
Warrant, exercisable until 2022, to purchase common stock at $.01 per share (B)	45,486 shs.		10/12/12			45,486		206,826

						1,189,359		1,787,703


BlueSpire Holding, Inc.
A marketing services firm that integrates strategy, technology, and content to deliver customized marketing solutions for clients in the senior living, financial services and healthcare end markets.
12.5% (1.5% PIK) Senior Subordinated Note due 06/30/2021	$	3,254,065	06/30/15			3,202,134		—
Common Stock (B)	2,876 shs.		06/30/15			318,200		—

						3,520,334		—


BP SCI LLC
A leading value-added distributor of branded pipes, valves, and fittings (PVF) to diversified end markets.
Limited Liability Company Unit Class A (B) (F)	1,000 uts.		10/17/12			100,000		185,723
Limited Liability Company Unit Class B (B) (F)	400 uts.		10/17/12			400,000		642,705

						500,000		828,428

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

CG Holdings Manufacturing Company
A coating provider serving the automotive, agricultural, heavy truck and other end markets.
13% Senior Subordinated Note 11/01/2019	$	3,390,252		*	$	3,279,577	$	3,390,252
Preferred Stock (B)	3,241 shs.			*		324,054		406,604
Preferred Stock (B)	1,174 shs.			*		116,929		147,317
Common Stock (B)	337 shs.			*		35,673		317,618
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)	137 shs.			*		13,033		129,226

* 05/09/13 and 11/01/13.						3,769,266		4,391,017


CHG Alternative Education Holding Company
A leading provider of publicly-funded, for profit pre-K-12 education services targeting special needs children at therapeutic day schools and "at risk" youth through alternative education programs.
13.5% (1.5% PIK) Senior Subordinated Note due 01/19/2018	$	2,339,665	01/19/11			2,311,710		2,339,665
14% (2% PIK) Senior Subordinated Note due 08/03/2019	$	615,028	08/03/12			609,553		615,028
Common Stock (B)	1,125 shs.		01/19/11			112,500		130,115
Warrant, exercisable until 2021, to purchase common stock at $.01 per share (B)	884 shs.		01/19/11			87,750		102,279

						3,121,513		3,187,087


Church Services Holding Company
A provider of diversified residential services to homeowners in the Houston, Dallas, and Austin markets.
14.5% (2% PIK) Senior Subordinated Note due 03/26/2018 (D)	$	575,664	03/26/12			569,935		—
Preferred Stock Series A (B)	205 shs.		09/22/16			20,475		—
Preferred Stock (B)	1,672 shs.		04/11/16			167,240		—
Common Stock (B)	3,981 shs.			*		398,100		—
Warrant, exercisable until 2022, to purchase common stock at $.01 per share (B)	172 shs.		03/26/12			17,220		—

* 03/26/12, 05/25/12 and 06/19/12.						1,172,970		—


Clarion Brands Holding Corp.
A portfolio of six over-the-counter (OTC) pharmaceutical brands whose products are used to treat tinnitus or ringing of the ear, excessive sweating, urinary tract infections, muscle pain, and skin conditions.
12.5% (1.5% PIK) Senior Subordinated Note due 04/01/2021	$	4,105,530		*		4,041,604		4,047,181
Limited Liability Company Unit (B)	3,759 uts.		07/18/16			384,020		315,270

* 10/01/14 and 07/18/16.						4,425,624		4,362,451

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Clough, Harbour and Associates
An engineering service firm that is located in Albany, NY.
Preferred Stock (B)	277 shs.		12/02/08		$	276,900	$	1,178,497


Compass Chemical International LLC
A manufacturer and supplier of standard and specialty formulated chemicals, primarily phosphoric acid derivatives called phosphonates.
Limited Liability Company Unit (B) (F)	467 uts.		03/04/15			298,900		239,250


Connecticut Electric, Inc.
A supplier and distributor of electrical products sold into the retail and wholesale markets.
Limited Liability Company Unit Class A (B)	156,046 uts.		01/12/07			156,046		209,024
Limited Liability Company Unit Class C (B)	112,873 uts.		01/12/07			112,873		163,104
Limited Liability Company Unit Class D (B)	1,268,437 uts.		05/03/10			—		1,729,565
Limited Liability Company Unit Class E (B)	2,081 uts.		05/03/10			—		297,954

						268,919		2,399,647


CORA Health Services, Inc.
A provider of outpatient rehabilitation therapy services.
12.75% (1.75% PIK) Senior Subordinated Note due 06/30/2023	$	1,552,027	06/30/16			1,523,483		1,565,670
Preferred Stock Series A (B)	1,538 shs.		06/30/16			146,154		150,723
Common Stock Class A (B)	7,692 shs.		06/30/16			7,692		5,462

						1,677,329		1,721,855


CTM Holding, Inc.
A leading owner and operator of coin-operated children's rides, penny presses and candy kiosks in the U.S.
15% (3% PIK) Senior Subordinated Note due 11/22/2019	$	2,593,764	11/22/13			2,565,680		2,580,619
Common Stock (B)	180 shs.			*		1,028,568		754,072

* 11/22/13 and 09/16/16.						3,594,248		3,334,691


Del Real LLC
A manufacturer and distributor of fully-prepared fresh refrigerated Hispanic entrees as well as side dishes that are typically sold on a heat-and-serve basis at retail grocers.
11% Senior Subordinated Note due 04/06/2023	$	2,882,353	10/07/16			2,826,144		2,835,049
Limited Liability Company Unit (B) (F)	617,647 uts.		10/07/16			617,647		617,647

						3,443,791		3,452,696

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

DPL Holding Corporation
A distributor and manufacturer of aftermarket undercarriage parts for medium and heavy duty trucks and trailers.
14% (2% PIK) Senior Subordinated Note due 11/04/2020		$	3,369,504	05/04/12	$	3,341,475	$	3,263,924
Preferred Stock (B)	61 shs.			05/04/12		605,841		469,034
Common Stock (B)	61 shs.			05/04/12		67,316		—

						4,014,632		3,732,958


Dunn Paper
A provider of specialty paper for niche product applications.
9.75% Second Lien Term Loan due 08/31/2023		$	3,500,000	09/28/16		3,432,206		3,430,000


Eagle Family Foods, Inc.
A producer of low-cost branded and private label canned milk.
10.05% Last Out Term Loan due 12/31/2021		$	3,500,000	12/22/15		3,456,290		3,484,560


ECG Consulting Group
A healthcare management consulting company who provides strategic, financial, operational, and technology related consulting services to healthcare providers.
11.75% (0.75% PIK) Senior Subordinated Note due 11/21/2020		$	2,666,799	11/21/14		2,623,346		2,693,467
Limited Liability Company Unit (B) (F)	467 uts.			11/19/14		145,833		180,539

						2,769,179		2,874,006


Elite Sportswear Holding, LLC
A designer and manufacturer of gymnastics, competitive cheerleading and swimwear apparel in the U.S. and internationally.
11.5% (1% PIK) Senior Subordinated Note due 10/13/2021		$	3,182,895	10/14/16		3,129,111		3,147,190
Limited Liability Company Unit (B) (F)	204 uts.			10/14/16		324,074		324,077

						3,453,185		3,471,267


ERG Holding Company LLC
A provider of inpatient and outpatient clinical trial services to pharmaceutical companies and contract research organizations.
13.5% (1.5% PIK) Senior Subordinated Note due 10/04/2019		$	1,966,787	04/04/14		1,944,315		1,986,455
14% (2% PIK) Senior Subordinated Note due 10/04/2019		$	516,395	07/01/16		507,446		531,887
Common Stock (B)	0.64% int.			04/04/14		157,314		176,804

						2,609,075		2,695,146

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

F F C Holding Corporation
A leading U.S. manufacturer of private label frozen novelty and ice cream products.
Limited Liability Company Unit Preferred (B)		512 uts.	09/27/10	$	175,035	$	240,923
Limited Liability Company Unit Common (B)		512 uts.	09/27/10		51,220		698,544

					226,255		939,467


F G I Equity LLC
A manufacturer of a broad range of filters and related products that are used in commercial, light industrial, healthcare, gas turbine, nuclear, laboratory, clean room, hotel, educational system, and food processing settings.
Limited Liability Company Unit Preferred (B)		483,355 uts.	04/15/14		—		483,355
Limited Liability Company Unit Class B-1 (B)		394,737 uts.	12/15/10		394,737		1,006,991
Limited Liability Company Unit Class B-2 (B)		49,488 uts.	12/15/10		49,488		126,246
Limited Liability Company Unit Class B-3 (B)		39,130 uts.	08/30/12		90,000		109,997
Limited Liability Company Unit Class C (B)		9,449 uts.	12/20/10		96,056		195,822

					630,281		1,922,411


FMH Holdings Corporation
A designer and manufacturer of highly engineered components for the aerospace, defense and space industries.
Common Stock (B)		300 shs.	05/01/15		300,485		424,416


GD Dental Services LLC
A provider of convenient "onestop" general, specialty, and cosmetic dental services with 21 offices located throughout South and Central Florida.
Limited Liability Company Unit Preferred (B)		182 uts.	10/05/12		182,209		246,703
Limited Liability Company Unit Common (B)		1,840 uts.	10/05/12		1,840		37,690

					184,049		284,393


GenNx Novel Holding, Inc.
A manufacturer and distributor of nutraceutical ingredients.
15% (1% PIK) Senior Subordinated Note due 03/27/2020	$	3,266,502	03/27/14		3,225,805		2,087,295
Common Stock (B)		31,500 shs.	03/27/14		315,000		—

					3,540,805		2,087,295

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016


Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

gloProfessional Holdings, Inc.
A marketer and distributor of premium mineral-based cosmetics, cosmeceuticals and professional hair care products to the professional spa and physician's office channels.
14% (2% PIK) Senior Subordinated Note due 03/27/2019		$	2,928,048	03/27/13	$	2,902,276	$	2,928,048
Common Stock (B)	2,835 shs.			03/27/13		283,465		294,987

						3,185,741		3,223,035


Glynlyon Holding Companies, Inc.
A technology-enabled curriculum provider of K-12 and support services predominantly to small and medium public school districts.
12% (1% PIK) Senior Subordinated Note due 01/15/2022		$	3,231,730	01/15/16		3,175,079		3,310,273
Common Stock (B)	299 shs.			01/15/16		299,145		336,185

						3,474,224		3,646,458


GlynnDevins Acquisition Corporation
A marketing communications agency that service senior living facilities.
Preferred Stock Series A (B)	695 shs.			06/19/15		143,414		158,385
Common Stock (B)	695 shs.			06/19/15		5,976		57,712

						149,390		216,097


Grakon Parent
The leading designer and manufacturer of highly-engineered and customized LED and incandescent lighting systems for transportation-based markets.
Common Stock (B)	355 shs.			10/31/14		354,730		301,996


GTI Holding Company
A designer, developer, and marketer of precision specialty hand tools and handheld test instruments.
12% Senior Subordinated Note due 02/05/2020		$	1,455,729	02/05/14		1,392,422		1,424,859
Common Stock (B)	1,693 shs.			02/05/14		169,271		180,652
Warrant, exercisable until 2024, to purchase common stock at $.01 per share (B)	795 shs.			02/05/14		73,633		84,830

						1,635,326		1,690,341

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Handi Quilter Holding Company (Premier Needle Arts)
A designer and manufacturer of long-arm quilting machines and related components for the consumer quilting market.
12% (1% PIK) Senior Subordinated Note due 06/19/2021	$	2,916,667	12/19/14		$	2,871,883	$	2,961,995
Limited Liability Company Unit Preferred (B)	729 uts.			*		729,169		657,644
Limited Liability Company Unit Common Class A (B)	7,292 uts.		12/19/14			—		—

* 12/19/14 and 4/29/16.						3,601,052		3,619,639


Happy Floors Acquisition, Inc.
A wholesale importer and value-added distributor of premium European flooring tile to residential and commercial end markets.
12.5% (1% PIK) Senior Subordinated Note due 07/01/2022	$	3,212,670	07/01/16			3,154,096		3,231,530
Common Stock (B)	303 shs.		07/01/16			303,333		267,951

						3,457,429		3,499,481


Hartland Controls Holding Corporation
A manufacturer and distributor of electronic and electromechanical components.
14% (2% PIK) Senior Subordinated Note due 08/14/2019	$	2,244,827	02/14/14			2,219,418		2,267,275
12% Senior Subordinated Note due 08/14/2019	$	875,000	06/22/15			869,026		892,500
Preferred Stock Series A (B)	2,313 shs.		02/14/14			231,326		262,423
Common Stock (B)	1,666 shs.		02/14/14			1,667		543,475

						3,321,437		3,965,673


Healthcare Direct Holding Company
A direct-to-consumer marketer of discount dental plans.
Common Stock (B)	1,552 shs.		03/09/12			64,254		253,805

HHI Group, LLC
A developer, marketer, and distributor of hobby-grade radio control products.
14% (2% PIK) Senior Subordinated Note due 01/17/2020	$	3,428,755	01/17/14			3,392,810		1,885,815
Limited Liability Company Unit (B) (F)	203 uts.		01/17/14			203,125		—

						3,595,935		1,885,815


Hollandia Produce LLC
A hydroponic greenhouse producer of branded root vegetables.
14.25% (2.75% PIK) Senior Subordinated Note due 03/31/2021	$	2,750,537		*		2,705,013		2,622,812

* 12/30/15 and 12/23/16

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

HOP Entertainment LLC
A provider of post production equipment and services to producers of television shows and motion pictures.
Limited Liability Company Unit Class F (B) (F)	89 uts.		10/14/11		$	—	$	—
Limited Liability Company Unit Class G (B) (F)	215 uts.		10/14/11			—		—
Limited Liability Company Unit Class H (B) (F)	89 uts.		10/14/11			—		—
Limited Liability Company Unit Class I (B) (F)	89 uts.		10/14/11			—		—

						—		—


Hospitality Mints Holding Company
A manufacturer of individually-wrapped imprinted promotional mints.
12% Senior Subordinated Note due 10/01/2018	$	2,075,581	08/19/08			2,068,159		1,944,120
Common Stock (B)	474 shs.		08/19/08			474,419		37,801
Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B)	123 shs.		08/19/08			113,773		9,770

						2,656,351		1,991,691

HVAC Holdings, Inc.
A provider of integrated energy efficiency services and maintenance programs for HVAC systems.
12% (1% PIK) Senior Subordinated Note due 7/19/2022	$	2,290,421		*		2,265,925		2,293,188
Limited Liability Company Unit Class A Preferred (B)	2,705 uts.		09/27/12			270,542		406,818
Limited Liability Company Unit Class A Common (B)	2,185 uts.		09/27/12			2,185		221,297

* 7/19/16 and 9/6/16						2,538,652		2,921,303


Ideal Tridon Holdings, Inc.
A designer and manufacturer of clamps and couplings used in automotive and industrial end markets.
Common Stock	279 shs.		10/27/11			232,385		519,893


Impact Confections
An independent manufacturer and marketer of confectionery products including Warheads^® brand sour candies, Melster^® brand classic candies, and co-manufactured/private label classic candies.
13% (1% PIK) Senior Subordinated Note due 11/10/2020	$	2,204,999	11/10/14			2,173,507		2,193,140
Common Stock (B)	4,667 shs.		11/10/14			466,667		423,909

						2,640,174		2,617,049


Insurance Claims Management, Inc.
A third party administrator providing auto and property claim administration services for insurance companies.
Common Stock (B)	89 shs.		02/27/07			2,689		268,869

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

Janus Group Holdings LLC
A manufacturer of roll-up doors and hallway systems that are primarily used in self-storage facilities.
13.5% (1.5% PIK) Senior Subordinated Note due 06/10/2019	$	1,155,163	12/11/13	$	1,142,744	$	1,155,163
Limited Liability Company Unit Class A (B) (F)	565 uts.		12/11/13		759,165		3,113,552

					1,901,909		4,268,715


JMH Investors LLC
A developer and manufacturer of custom formulations for a wide variety of foods.
Limited Liability Company Unit (B) (F)	2,493,253 uts.		12/05/12		557,301		—
Limited Liability Company Unit Class A-2 (B) (F)	2,478,261 uts.		10/31/16		—		—
Limited Liability Company Unit Class A-1 (B) (F)	391,304 uts.		10/31/16		391,304		391,304

					948,605		391,304


K N B Holdings Corporation
A designer, manufacturer and marketer of products for the custom framing market.
Common Stock (B)	134,210 shs.		05/24/06		134,210		165,116
Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B)	82,357 shs.		05/25/06		71,534		101,322

					205,744		266,438


K P I Holdings, Inc.
The largest player in the U.S. non-automotive, non-ferrous die casting segment.
Limited Liability Company Unit Class C Preferred (B)	75 uts.		06/30/15		—		145,949
Common Stock (B)	667 shs.		07/15/08		539,502		408,552

					539,502		554,501


Kyjen Company
A designer and distributor of branded and private label dog toys and accessories primarily in the U.S.
13% (1% PIK) Senior Subordinated Note due 10/14/2021	$	2,656,946	10/14/15		2,612,008		2,695,688


Mail Communications Group, Inc.
A provider of mail processing and handling services, lettershop services, and commercial printing services.
Limited Liability Company Unit	24,109 uts.		*		314,464		362,451
Warrant, exercisable until 2017, to purchase common stock at $.01 per share (B) (F)	3,375 shs.		05/04/07		43,031		50,739

* 05/04/07 and 01/02/08.					357,495		413,190

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

Manhattan Beachwear Holding Company
A designer and distributor of women's swimwear.
12.5% Senior Subordinated Note due 01/15/2018 (D)	$	1,259,914	01/15/10	$	1,212,363	$	—
15% (2.5% PIK) Senior Subordinated Note due 01/15/2018 (D)	$	345,759	10/05/10		343,820		—
Common Stock (B)	106 shs.		10/05/10		106,200		—
Common Stock Class B (B)	353 shs.		01/15/10		352,941		—
Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B)	312 shs.		10/05/10		283,738		—

					2,299,062		—


Master Cutlery LLC
A designer and marketer of a wide assortment of knives and swords.
13% Senior Subordinated Note due 04/17/2020	$	1,745,086	04/17/15		1,730,616		1,641,542
Limited Liability Company Unit	9 uts.		04/17/15		1,356,658		366,251

					3,087,274		2,007,793


MC Sign Holdings LLC
A provider of sign and lighting services nationwide.
11.75% (0.75% PIK) Senior Subordinated Note due 09/15/2021	$	1,558,922	09/22/15		1,532,927		1,574,511
Limited Liability Company Unit Class B (B)	205,900 uts.		09/22/15		205,900		355,116

					1,738,827		1,929,627


Merex Holding Corporation
A provider of after-market spare parts and components, as well as maintenance, repair and overhaul services for "out of production" or "legacy" aerospace and defense systems that are no longer effectively supported by the original equipment manufacturers.
16% Senior Subordinated Note due 10/30/2019 (D)	$	1,362,886	09/22/11		1,347,188		1,022,165
15% PIK Senior Subordinated Note due 04/30/2022 (D)	$	71,517	08/18/15		71,517		—
14% PIK Senior Subordinated Note due 06/30/2019	$	94,476	10/21/16		94,476		93,735
Common Stock Class A	231,353 shs.		*		512,114		—

* 08/18/15 and 10/20/16.					2,025,295		1,115,900

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

MES Partners, Inc.
An industrial service business offering an array of cleaning and environmental services to the Gulf Coast region of the U.S.
12% (1% PIK) Senior Subordinated Note due 09/30/2021	$	2,245,350	09/30/14	$	2,211,735	$	2,189,149
Common Stock Class B (B)	445,455 shs.		09/30/14		445,455		184,319

					2,657,190		2,373,468


Midwest Industrial Rubber, Inc.
A supplier of industrial maintenance, repair, and operations ("MRO") products, specializing in the fabrication and distribution of lightweight conveyor belting and related conveyor components and accessories.
12% (1% PIK) Senior Subordinated Note due 12/02/2022	$	3,154,857	12/02/16		3,092,404		3,168,127
Preferred Stock	3,472 shs.		12/02/16		347,191		347,191
Common Stock	491 shs.		12/02/16		491		491

					3,440,086		3,515,809


MNX Holding Company
An international third party logistics company providing customized logistics services to customers across the globe.
14% (2% PIK) Senior Subordinated Note due 11/02/2019	$	3,143,440	11/02/12		3,113,040		3,143,440
Common Stock (B)	107 shs.		11/02/12		107,143		81,994

					3,220,183		3,225,434


Money Mailer Equity LLC
A leading provider of hyperlocal shared direct mail advertising as well as interactive and online advertising solutions through its nationwide production and distribution network.
12% (1% PIK) Senior Subordinated Note due 10/29/2021	$	3,520,654	04/29/16		3,458,121		3,453,798


Motion Controls Holdings
A manufacturer of high performance mechanical motion control and linkage products.
14.25% (1.75% PIK) Senior Subordinated Note due 08/15/2020	$	3,028,436	11/30/10		3,007,578		3,028,436
Limited Liability Company Unit Class B-1 (B) (F)	225,000 uts.		11/30/10		—		142,858
Limited Liability Company Unit Class B-2 (B) (F)	20,403 uts.		11/30/10		—		12,954

					3,007,578		3,184,248

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

NetShape Technologies, Inc.
A manufacturer of powder metal and metal injection molded precision components used in industrial, consumer, and other applications.
12% Senior Subordinated Note due 06/10/2020 (D)	$	1,530,000	02/02/07		$	1,528,882	$	—
Limited Partnership Interest of Saw Mill PCG Partners LLC (B)	2.76% int.		02/01/07			1,110,810		—
Limited Liability Company Unit Class D of Saw Mill PCG Partners LLC (B)	17 uts.			*		16,759		—
Limited Liability Company Unit Class D-1 of Saw Mill PCG Partners LLC (B)	229 uts.		09/30/09			228,858		—
Limited Liability Company Unit Class D-2 of Saw Mill PCG Partners LLC (B)	128 uts.		04/29/11			65,256		—
Limited Liability Company Unit Class D-3 of Saw Mill PCG Partners LLC (B)	196 uts.		12/10/14			196,263		—

* 12/18/08 and 09/30/09.						3,146,828		—


NSi Industries Holdings, Inc.
A manufacturer and distributer of electrical components and accessories to small to mid-sized electrical wholesalers.
12.75% (1.75% PIK) Senior Subordinated Note due 5/17/2023	$	3,099,913	06/30/16			3,043,968		3,110,644
Common Stock (B)	420 shs.		05/17/16			420,000		508,898

						3,463,968		3,619,542


O E C Holding Corporation
A provider of elevator maintenance, repair and modernization services.
Preferred Stock Series A (B)	1,661 shs.		06/04/10			166,062		215,372
Preferred Stock Series B (B)	934 shs.		06/04/10			93,376		166,596
Common Stock (B)	1,032 shs.		06/04/10			1,032		209,430

						260,470		591,398


PANOS Brands LLC
A marketer and distributor of branded consumer foods in the specialty, natural, better-for-you,"free from" healthy and gluten-free categories.
12% (1% PIK) Senior Subordinated Note due 07/29/2021	$	2,940,000	01/29/16			2,888,516		3,011,624
Common Stock Class A (B)	560,000 shs.		01/29/16			560,000		656,149

						3,448,516		3,667,773

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage			Acquisition Date		Cost		Fair Value

Pearlman Enterprises, Inc.
A developer and distributor of tools, equipment, and supplies to the natural and engineered stone industry.
Preferred Stock Series A (B)	2,334 shs.			05/22/09		$	111,508	$	2,334,350
Preferred Stock Series B (B)	13,334 shs.			05/22/09			547,872		459,326
Common Stock (B)	40,540 shs.			05/22/09			1,877,208		—

							2,536,588		2,793,676


Petroplex Inv Holdings LLC
A leading provider of acidizing services to E&P customers in the Permian Basin.
Limited Liability Company	0.90% int.				*		420,814		45,814

* 11/29/12 and 12/20/16



Polytex Holdings LLC
A manufacturer of water based inks and related products serving primarily the wall covering market.
13% (1% PIK) Senior Subordinated Note due 01/31/2020		$	2,154,782	07/31/14			2,127,539		2,102,658
Limited Liability Company Unit	300,485 uts.			07/31/14			300,485		97,598

							2,428,024		2,200,256


Power Stop Holdings LLC
A supplier of performance upgrade aftermarket brake products.
11% Senior Subordinated Note due 05/29/2022		$	3,266,800	05/29/15			3,215,171		3,332,136
Limited Liability Company Unit Preferred (B) (F)	2,332 uts.			05/29/15			233,200		266,329
Limited Liability Company Unit Common (B) (F)	2,332 uts.			05/29/15			—		160,673

							3,448,371		3,759,138


PPC Event Services
A special event equipment rental business.
14% (2% PIK) Senior Subordinated Note due 05/20/2020		$	2,367,609	11/20/14			2,335,834		2,367,609
Limited Liability Company Unit (B)	7,000 uts.			11/20/14			350,000		956,942
Limited Liability Company Unit Series A-1 (B)	689 uts.			03/16/16			86,067		109,051

							2,771,901		3,433,602


Randy's Worldwide Automotive
A designer and distributor of automotive aftermarket parts.
11.5% Senior Subordinated Note due 05/12/2021		$	2,304,719	05/12/15			2,270,521		2,350,813
Common Stock (B)	240 shs.			05/12/15			240,388		364,237

							2,510,909		2,715,050

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Safety Infrastructure Solutions
A provider of trench safety equipment to a diverse customer base across multiple end markets in Texas and the
Southwestern United States.
Preferred Stock (B)	6,294 shs.		03/30/12		$	251,758	$	379,460
Common Stock (B)	2,949 shs.		03/30/12			29,492		581,564

						281,250		961,024


Signature Systems Holdings Company
A seller and installer of a variety of modular surfaces, industrial matting and related products used for ground protection.
Common Stock (B)	181 shs.		03/15/13			181,221		83,396
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)	74 shs.		03/15/13			67,958		34,068

						249,179		117,464


Smart Source Holdings LLC
A short-term computer rental company.
Limited Liability Company Unit (B)	619 uts.			*		493,496		784,547
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)	157 shs.			*		127,437		198,752

* 08/31/07 and 03/06/08.						620,933		983,299


SMB Machinery Holdings, Inc.
A reseller of used, rebuilt and refurbished packaging and processing equipment, primarily serving the bottling and food manufacturing industries.
14% (2% PIK) Senior Subordinated Note due 10/18/2019 (D)	$	1,477,388	10/18/13			1,452,295		—
Common Stock (B)	1,681 shs.		10/18/13			168,100		—

						1,620,395		—


Software Paradigms International Group, LLC
An outsourced IT services provider focused on the retail industry.
12.5% (1.5% PIK) Senior Subordinated Note due 11/23/2021	$	3,500,000	05/23/16			3,435,552		3,506,348

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date		Cost		Fair Value

Strahman Holdings Inc
A manufacturer of industrial valves and wash down equipment for a variety of industries, including chemical, petrochemical, polymer, pharmaceutical, food processing, beverage and mining.
14% (2% PIK) Senior Subordinated Note due 06/13/2019	$	2,119,565	12/13/13		$	2,090,673	$	2,085,668
Preferred Stock Series A (B)	317,935 shs.		12/13/13			317,935		270,245
Preferred Stock Series A-2 (B)	53,086 shs.		09/10/15			59,987		45,123

						2,468,595		2,401,036


Sunrise Windows Holding Company
A manufacturer and marketer of premium vinyl windows exclusively selling to the residential remodeling and replacement market.
16% Senior Subordinated Note due 12/14/2017 (D)	$	4,117,068		*		4,075,756		2,881,947
Common Stock (B)	115 shs.		12/14/10			114,504		—
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)	112 shs.		12/14/10			111,747		—

* 12/14/10, 08/17/12 and 03/31/16.						4,302,007		2,881,947


Sunvair Aerospace Group Inc.
An aerospace maintenance, repair, and overhaul provider servicing landing gears on narrow body aircraft.
12% (1% PIK) Senior Subordinated Note due 07/31/2021	$	2,472,606	07/31/15			2,423,277		2,418,215
Common Stock (B)	139 shs.		07/31/15			158,560		75,951

						2,581,837		2,494,166


Team Drive-Away Holdings LLC
An asset-light provider of over the road driveaway services for class 8 trucks and specialized equipment.
12.5% (1.5% PIK) Senior Subordinated Note due 04/15/2021	$	1,555,600	10/15/15			1,529,608		1,578,784
Limited Liability Company Unit (B)	194,400 uts.		10/15/15			194,400		217,922

						1,724,008		1,796,706


Torrent Group Holdings, Inc.
A contractor specializing in the sales and installation of engineered drywells for the retention and filtration of stormwater and nuisance water flow.
15% (7.5% PIK) Senior Subordinated Note due 12/05/2020 (D)	$	126,792	12/05/13			414,051		126,792
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)	53,038 shs.		12/05/13			—		21,745

						414,051		148,537

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016


Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

Tranzonic Holdings LLC
A producer of commercial and industrial supplies, such as safety products, janitorial supplies, work apparel, washroom and restroom supplies and sanitary care products.
Limited Liability Company Unit Preferred Class A (B)	295,455 uts.		07/05/13	$	295,455	$	437,166


Tristar Global Energy Solutions, Inc.
A hydrocarbon and decontamination services provider serving refineries worldwide.
12.5% (1.5% PIK) Senior Subordinated Note due 07/31/2020	$	2,319,923	01/23/15		2,287,761		2,366,322


Veritext Corporation
A provider of stenographic staffing and other services used during the legal deposition process.
10.75% Second Lien Term Loan due 01/29/2023	$	3,500,000	01/21/16		3,439,253		3,500,000


VP Holding Company
A provider of school transportation services for special-needs and homeless children in Massachusetts.
Common Stock (B)	7,368 shs.		03/31/14		736,842		813,922


Wellborn Forest Holding Company
A manufacturer of semi-custom kitchen and bath cabinetry.
8% Senior Subordinated Note due 09/30/2017 (D)	$	3,175,092	11/30/06		1,638,669		2,857,583
Common Stock (B)	191 shs.		11/30/06		191,250		—
Warrant, exercisable until 2017, to purchase common stock at $.01 per share (B)	95 shs.		11/30/06		86,493		—

					1,916,412		2,857,583


Westminster Acquisition LLC
A manufacturer of premium, all-natural oyster cracker products sold under the Westminster and Olde Cape Cod brands.
12% (1% PIK) Senior Subordinated Note due 02/03/2021	$	761,854	08/03/15		750,376		768,953
Limited Liability Company Unit (B) (F)	751,212 uts.		08/03/15		751,212		925,671

					1,501,588		1,694,624

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Corporate Restricted Securities: (A) (Continued)	Principal Amount, Shares, Units or Ownership Percentage		Acquisition Date	Cost		Fair Value

Whitcraft Holdings, Inc.
A leading independent manufacturer of precision formed, machined, and fabricated flight-critical aerospace components.
Common Stock (B)	616 shs.		12/16/10	$	616,438	$	877,116
Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B)	166 shs.		12/16/10		148,003		235,685

					764,441		1,112,801


Wolf-Gordon, Inc.
A designer and specialty distributor of wallcoverings and related building products, including textiles, paint, and writeable surfaces.
12.5% (1.5% PIK) Senior Subordinated Note due 07/22/2021	$	3,226,999	01/22/16		3,171,350		3,279,639
Common Stock (B)	318 shs.		01/22/16		318,182		349,380

					3,489,532		3,629,019


WP Supply Holding Corporation
A distributor of fresh fruits and vegetables to grocery wholesalers and foodservice distributors in the upper Midwest.
14.5% (2.5% PIK) Senior Subordinated Note due 06/12/2020	$	2,900,039	11/03/11		2,881,219		2,900,039
Common Stock (B)	4,500 shs.		11/03/11		450,000		435,060

					3,331,219		3,335,099


York Wall Holding Company
A designer, manufacturer and marketer of wall covering products for both residential and commercial wall coverings.
12.5% (1.5% PIK) Senior Subordinated Note due 03/04/2021	$	3,214,210	03/04/15		3,165,959		2,777,965
Common Stock (B)	3,723 shs.		03/04/15		372,300		135,599

					3,538,259		2,913,564

Total Private Placement Investments (E)				$	205,902,622	$	201,207,921

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016


Corporate Restricted Securities: (A) (Continued)	Interest Rate			Maturity Date	Principal Amount		Cost		Market Value

Rule 144A Securities - 20.06%:

Bonds - 20.06%

A. Schulman Inc.		6.875	%	06/01/23	$	1,000,000	$	1,012,175	$	1,045,000
Altice S.A.		7.750		05/15/22		1,000,000		1,000,000		1,067,500
American Airlines Group Inc.		5.500		10/01/19		870,000		893,932		898,274
Amsted Industries		5.375		09/15/24		520,000		520,000		510,900
Beazer Homes USA Inc.		8.750		03/15/22		320,000		320,000		345,600
Belden Inc.		5.250		07/15/24		410,000		410,000		412,050
Boise Cascade Company		5.625		09/01/24		259,000		259,000		257,058
Boyd Gaming Corporation		6.375		04/01/26		197,000		197,000		212,169
CITGO Holding, Inc.		10.750		02/15/20		1,000,000		1,018,559		1,072,500
CITGO Petroleum Corporation		6.250		08/15/22		925,000		925,000		962,000
Consolidated Energy Finance S.A.		6.750		10/15/19		1,000,000		991,655		1,000,000
Constellium N.V.		7.875		04/01/21		743,000		743,000		798,724
Cornerstone Chemical Company		9.375		03/15/18		1,000,000		1,007,491		1,002,500
Coveris Holdings S.A.		7.875		11/01/19		1,000,000		1,000,000		992,500
CTP Transportation Products, LLC		8.250		12/15/19		635,000		635,000		547,687
CVR Partners, LP.		9.250		06/15/23		1,000,000		976,440		1,030,000
Dean Foods		6.500		03/15/23		663,000		663,000		697,807
Diamond 1 Finance Corp / Diamond Finance Corp (Dell)		5.875		06/15/21		228,000		228,000		242,575
Digicel Group Limited		6.000		04/15/21		1,000,000		918,443		904,470
Endo Finance LLC		5.375		01/31/23		1,000,000		981,624		847,500
Gates Global LLC		6.000		07/15/22		1,000,000		789,008		978,000
Hilcorp Energy Company		5.000		12/01/24		500,000		500,000		496,250
Hill-Rom Holdings, Inc.		5.750		09/01/23		385,000		385,000		397,513
Hub International Ltd.		7.875		10/01/21		1,000,000		1,000,000		1,056,410
Hughes Satellite Systems Corporation		6.625		08/01/26		1,250,000		1,233,350		1,256,250
Infor (US), Inc.		5.750		08/15/20		226,000		224,283		236,735
International Automotive Component		9.125		06/01/18		1,000,000		983,758		975,000
J.B. Poindexter Co., Inc.		9.000		04/01/22		1,000,000		1,036,317		1,050,000
JBS USA Holdings, Inc.		7.750		10/28/20		750,000		775,415		795,975
JDA Escrow LLC		7.375		10/15/24		179,000		179,000		185,712
Jupiter Resources Inc.		8.500		10/01/22		1,000,000		945,849		862,500
KeHE Distributors, LLC		7.625		08/15/21		1,000,000		1,045,866		995,000
Acelity L.P. Inc. fka Kinetic Concepts Inc.		9.625		10/01/21		1,000,000		1,000,000		1,057,500
LBC Tank Terminals Holding Netherlands B.V.		6.875		05/15/23		1,315,000		1,345,781		1,344,588

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016


Corporate Restricted Securities: (A) (Continued)	Interest Rate			Maturity Date	Principal Amount		Cost		Market Value

Level 3 Communications Inc.		5.250	%	03/15/26	$	858,000	$	879,008	$	849,420
Mallinckrodt PLC		5.750		08/01/22		1,000,000		1,000,000		962,500
Micron Technology, Inc.		5.250		08/01/23		1,000,000		1,000,000		1,003,750
Micron Technology, Inc.		7.500		09/15/23		403,000		403,000		446,323
Milacron Financial		7.750		02/15/21		500,000		500,000		513,750
Moog Inc.		5.250		12/01/22		1,000,000		1,006,317		1,020,000
NRG Energy, Inc.		6.625		01/15/27		1,000,000		953,245		945,000
Numericable Group SA		6.000		05/15/22		1,000,000		978,302		1,026,250
Onex Corporation		8.500		10/01/22		352,000		352,000		293,920
OPE KAG Finance Sub		7.875		07/31/23		1,750,000		1,814,928		1,767,500
Pinnacle Operating Corporation		9.000		11/15/20		1,000,000		1,029,218		440,000
Prime Security Services Borrower		9.250		05/15/23		1,000,000		1,000,000		1,088,750
PSPC Escrow Corp		6.500		02/01/22		299,000		256,140		301,243
Sabre GLBL Inc.		5.250		11/15/23		251,000		251,000		257,744
Signode Industrial Group		6.375		05/01/22		1,265,000		1,236,948		1,261,838
Sinclair Television Group, Inc.		5.125		02/15/27		1,000,000		1,000,000		950,000
Sirius XM Radio Inc.		5.375		04/15/25		250,000		250,000		248,750
Sirius XM Radio Inc.		5.375		07/15/26		1,000,000		995,078		977,500
SunCoke Energy		7.375		02/01/20		1,000,000		945,903		995,000
Surgical Care Affiliates, Inc.		6.000		04/01/23		918,000		918,000		947,835
Tallgrass Operations LLC		5.500		09/15/24		605,000		605,000		600,463
TeamHealth Holdings Inc		7.250		12/15/23		235,000		235,000		267,313
Teine Energy Ltd.		6.875		09/30/22		900,000		894,429		919,125
Topaz Marine S.A.		8.625		11/01/18		1,000,000		1,000,000		970,000
Tullow Oil Plc		6.250		04/15/22		725,000		540,683		674,250
United States Steel Corp.		8.375		07/01/21		195,000		195,000		215,578
Unitymedia KabelBW GmbH		6.125		01/15/25		1,000,000		1,000,000		1,027,500
Univision Communications, Inc.		5.125		05/15/23		325,000		325,000		320,125
Univision Communications, Inc.		5.125		02/15/25		860,000		870,040		822,375
UPCB Finance IV Limited		5.375		01/15/25		425,000		425,000		428,188
Virgin Media Secured Finance PLC		5.250		01/15/26		1,000,000		1,006,517		987,500
VRX Escrow Corp.		5.875		05/15/23		1,500,000		1,117,960		1,132,500
Watco Companies, L.L.C.		6.375		04/01/23		1,000,000		1,000,000		1,035,000
Welltec A/S		8.000		02/01/19		750,000		744,281		753,750
West Corporation		5.375		07/15/22		1,000,000		985,164		966,250
Western Digital Corporation		10.500		04/01/24		494,000		494,000		584,155
WMG Acquisition Corp.		6.750		04/15/22		1,000,000		1,039,601		1,052,500

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016


Corporate Restricted Securities: (A) (Continued)	Interest Rate			Maturity Date	Principal Amount		Cost		Market Value

Wolverine World Wide, Inc.		5.000	%	09/01/26	$	666,000	$	666,000	$	641,025
Zekelman Industries, Inc		9.875		06/15/23		230,000		230,000		257,600

Total Bonds								56,286,708		56,486,517


Common Stock - 0.00%

TherOX, Inc. (B)						6		—		—
Touchstone Health Partnership (B)						1,168		—		—

Total Common Stock								—		—


Total Rule 144A Securities								56,286,708		56,486,517


Total Corporate Restricted Securities							$	262,189,330	$	257,694,438

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016


Corporate Public Securities - 12.54%: (A)	Interest Rate			Maturity Date	Principal Amount		Cost		Market Value

Bank Loans - 2.30%

Ascent Resource - Marcellus LLC		8.500	%	07/09/21	$	209,882	$	207,812	$	25,186
Aquilex Holdings LLC		6.500		12/31/20		273,411		273,017		266,234
Caelus Energy Alaska, LLC		8.750		04/15/20		1,000,000		994,272		800,000
Fieldwood Energy LLC		8.000		08/31/20		344,430		309,389		325,486
Fieldwood Energy LLC		8.375		09/30/20		1,044,008		488,531		730,806
Fieldwood Energy LLC		8.375		09/30/20		1,455,992		785,248		1,263,073
K&N Engineering, Inc.		9.750		12/31/99		1,000,000		980,399		982,500
Kronos Incorporated		9.250		12/31/99		409,457		405,419		421,487
RadNet Management Inc.		8.000		12/31/99		1,000,000		997,569		985,000
Seadrill Partners Finco, LLC		4.000		02/21/21		989,796		476,875		674,051

Total Bank Loans								5,918,531		6,473,823


Bonds - 10.24%

Alere Inc.		7.250		07/01/18		940,000		961,290		951,750
Anixter, Inc.		5.500		03/01/23		1,000,000		1,000,000		1,037,500
Antero Resources Corporation		5.375		11/01/21		800,000		800,000		818,000
Calpine Corporation		5.750		01/15/25		700,000		700,000		675,500
Clearwater Paper Corporation		4.500		02/01/23		750,000		744,960		734,999
Commercial Metals Company		4.875		05/15/23		1,500,000		1,502,182		1,507,500
Commercial Vehicle Group Inc.		7.875		04/15/19		930,000		942,603		928,838
CPI International, Inc.		8.750		02/15/18		760,000		758,119		771,400
CVR Refining LLC		6.500		11/01/22		650,000		633,886		645,125
EP Energy Corporation		9.375		05/01/20		819,000		401,399		755,011
Ferrellgas Partners, L.P		6.750		01/15/22		465,000		465,000		459,188
Ferrellgas Partners, L.P		8.625		06/15/20		1,048,000		1,048,938		1,032,280
Forum Energy Technologies		6.250		10/01/21		325,000		325,000		325,000
GEO Group, Inc. (The)		5.875		01/15/22		1,000,000		950,132		1,012,500
HCA Holdings, Inc.		5.375		02/01/25		150,000		152,361		150,375
HealthSouth Corporation		5.750		11/01/24		579,000		582,516		586,238
Hornbeck Offshore Services, Inc.		1.500		09/01/19		1,000,000		515,000		709,375
Icahn Enterprises L.P.		6.000		08/01/20		1,150,000		1,163,577		1,174,438
Kindred Healthcare, Inc.		8.750		01/15/23		1,000,000		1,000,000		935,000
Lamar Media Corp.		5.375		01/15/24		320,000		320,000		331,200
Laredo Petroleum, Inc.		5.625		01/15/22		1,000,000		946,773		1,007,500
Meritor, Inc.		6.750		06/15/21		1,000,000		1,000,000		1,022,500
Meritor, Inc.		7.875		03/01/26		669,000		663,403		967,122

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016


Corporate Public Securities: (A) (Continued)	Interest Rate			Maturity Date	Shares or Principal Amount		Cost		Market Value

Oasis Petroleum Inc.		6.875	%	03/15/22	$	1,000,000	$	1,000,000	$	1,025,000
Perry Ellis International, Inc.		7.875		04/01/19		250,000		248,975		250,000
P.H. Glatfelter Company		5.375		10/15/20		1,000,000		1,007,807		1,017,500
Ply Gem Industries, Inc.		6.500		02/01/22		1,000,000		946,353		1,026,250
Precision Drilling Corporation		6.625		11/15/20		448,432		455,797		455,159
Sanchez Energy Corporation		6.125		01/15/23		1,000,000		722,713		950,000
Select Medical Corporation		6.375		06/01/21		650,000		656,422		650,000
Sprint Corporation		7.125		06/15/24		315,000		315,000		324,450
Suburban Propane Partners, L.P.		5.750		03/01/25		1,000,000		1,000,000		1,015,000
Summit Midstream Holdings, LLC		5.500		08/15/22		170,000		124,716		165,750
Sunoco LP		6.250		04/15/21		840,000		835,462		855,750
Tenet Healthcare Corporation		6.750		06/15/23		725,000		721,881		639,813
William Lyon Homes		7.000		08/15/22		1,000,000		1,000,000		1,035,000
WPX Energy, Inc.		5.250		09/15/24		925,000		925,000		897,250

Total Bonds								27,537,265		28,845,261


Common Stock - 0.00%

Chase Packaging Corporation						9,541		—		191

Total Common Stock								—		191


Total Corporate Public Securities							$	33,455,796	$	35,319,275

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Short-Term Securities:	Interest Rate/Yield^			Maturity Date	Principal Amount		Cost		Market Value

Commercial Paper - 3.87%

Ameren Corporation		1.000	%	01/03/17	$	2,600,000	$	2,599,856	$	2,599,856
Caterpillar Inc.		0.990		01/11/17		3,000,000		2,999,175		2,999,175
Mattel, Inc.		0.790		01/03/17		4,000,000		3,999,824		3,999,824
South Carolina Electric & Gas Company		0.970		01/12/17		1,300,000		1,299,615		1,299,615

Total Short-Term Securities							$	10,898,470	$	10,898,470

Total Investments		107.93	%				$	306,543,596	$	303,912,183


Other Assets		6.40								18,029,689

Liabilities		(14.33	)							(40,370,981	)

Total Net Assets		100.00	%						$	281,570,891

(A)	In each of the convertible note, warrant, convertible preferred and common stock investments, the issuer has agreed to provide certain registration rights.

(B)	Non-income producing security.

(C)	Security valued at fair value using methods determined in good faith by or under the direction of the Board of Trustees.

(D)	Defaulted security; interest not accrued.

(E)	Illiquid securities. As of December 31, 2016, the value of these securities amounted to $201,207,921 or 71.46% of net assets.

(F)	Held in CI Subsidiary Trust

^	Effective yield at purchase

PIK - Payment-in-kind

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Industry Classification:	Fair Value/ Market Value

AEROSPACE & DEFENSE - 3.30%
API Technologies Corp.	$	3,364,505
CPI International, Inc.		771,400
FMH Holdings Corporation		424,416
Merex Holding Corporation		1,115,900
Sunvair Aerospace Group Inc.		2,494,166
Whitcraft Holdings, Inc.		1,112,801
		9,283,188

AIRLINES - 0.32%
American Airlines Group Inc.		898,274

AUTOMOTIVE - 9.34%
Aurora Parts & Accessories LLC		3,469,948
CG Holdings Manufacturing Company		4,391,017
Commercial Vehicle Group Inc.		928,838
DPL Holding Corporation		3,732,958
Gates Global LLC		978,000
Grakon Parent		301,996
International Automotive Component		975,000
J.B. Poindexter Co., Inc.		1,050,000
K&N Engineering, Inc.		982,500
Meritor, Inc.		1,989,622
Moog Inc.		1,020,000
Power Stop Holdings LLC		3,759,138
Randy's Worldwide Automotive		2,715,050
		26,294,067

BROKERAGE, ASSET MANAGERS & EXCHANGES - 0.42%
Icahn Enterprises L.P.		1,174,438

BUILDING MATERIALS - 10.59%
ARI Holding Corporation		4,724,738
Boise Cascade Company		257,058
Happy Floors Acquisition, Inc.		3,499,481
Janus Group Holdings LLC		4,268,715
NSi Industries Holdings, Inc.		3,619,542
Pearlman Enterprises, Inc.		2,793,676
Ply Gem Industries, Inc.		1,026,250

	Fair Value/ Market Value
Signature Systems Holdings Company	$	117,464
Sunrise Windows Holding Company		2,881,947
Torrent Group Holdings, Inc.		148,537
Wellborn Forest Holding Company		2,857,583
Wolf-Gordon, Inc.		3,629,019
		29,824,010

CABLE & SATELLITE - 1.69%
Altice S.A.		1,067,500
Hughes Satellite Systems Corporation		1,256,250
Unitymedia KabelBW GmbH		1,027,500
UPCB Finance IV Limited		428,188
Virgin Media Secured Finance PLC		987,500
		4,766,938

CHEMICALS - 2.95%
A. Schulman Inc.		1,045,000
Compass Chemical International LLC		239,250
Consolidated Energy Finance S.A.		1,000,000
Cornerstone Chemical Company		1,002,500
CVR Partners, LP.		1,030,000
LBC Tank Terminals Holding Netherlands B.V.		1,344,588
Pinnacle Operating Corporation		440,000
Polytex Holdings LLC		2,200,256
		8,301,594

CONSTRUCTION MACHINERY - 1.41%
Caterpillar Inc.		2,999,175
Safety Infrastructure Solutions		961,024
		3,960,199

CONSUMER CYCLICAL SERVICES - 3.44%
CHG Alternative Education Holding Company		3,187,087
Church Services Holding Company		—
GEO Group, Inc. (The)		1,012,500
PPC Event Services		3,433,602
Prime Security Services Borrower		1,088,750

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Industry Classification: (Continued)	Fair Value/ Market Value

West Corporation	$	966,250
		9,688,189

CONSUMER PRODUCTS - 10.09%
AMS Holding LLC		611,133
Blue Wave Products, Inc.		1,787,703
Elite Sportswear Holding, LLC		3,471,267
gloProfessional Holdings, Inc.		3,223,035
GTI Holding Company		1,690,341
Handi Quilter Holding Company		3,619,639
HHI Group, LLC		1,885,815
K N B Holdings Corporation		266,438
Kyjen Company		2,695,688
Manhattan Beachwear Holding Company		—
Master Cutlery LLC		2,007,793
Mattel, Inc.		3,999,824
Perry Ellis International, Inc.		250,000
York Wall Holding Company		2,913,564
		28,422,240

DIVERSIFIED MANUFACTURING - 5.82%
ABC Industries, Inc.		882,304
Advanced Manufacturing Enterprises LLC		—
Airxcel Holdings		4,042,812
Amsted Industries		510,900
Belden Inc.		412,050
BP SCI LLC		828,428
CTP Transportation Products, LLC		547,687
F G I Equity LLC		1,922,411
Forum Energy Technologies		325,000
Ideal Tridon Holdings, Inc.		519,893
K P I Holdings, Inc.		554,501
Motion Controls Holdings		3,184,248
NetShape Technologies, Inc.		—
Strahman Holdings Inc		2,401,036
Zekelman Industries, Inc		257,600
		16,388,870

	Fair Value/ Market Value
ELECTRIC - 3.19%
Ameren Corporation	$	2,599,856
AM Conservation Holding Corp		3,474,594
Calpine Corporation		675,500
NRG Energy, Inc.		945,000
South Carolina Electric & Gas Company		1,299,615
		8,994,565

ENERGY - 0.29%
Ascent Resource – Marcellus LLC		25,186
Caelus Energy Alaska, LLC		800,000
		825,186

FINANCIAL OTHER - 0.68%
Hub International Ltd.		1,056,410
Insurance Claims Management, Inc.		268,869
Onex Corporation		293,920
PSPC Escrow Corp		301,243
		1,920,442

FOOD & BEVERAGE - 10.47%
1492 Acquisition LLC		704,631
Dean Foods		697,807
Del Real LLC		3,452,696
Eagle Family Foods, Inc.		3,484,560
F F C Holding Corporation		939,467
GenNx Novel Holding, Inc.		2,087,295
Hollandia Produce LLC		2,622,812
Hospitality Mints Holding Company		1,991,691
Impact Confections		2,617,049
JBS USA Holdings, Inc.		795,975
JMH Investors LLC		391,304
KeHE Distributors, LLC		995,000
PANOS Brands LLC		3,667,773
Westminster Acquisition LLC		1,694,624
WP Supply Holding Corporation		3,335,099
		29,477,783

GAMING - 1.26%
Boyd Gaming Corporation		212,169

See Notes to Consolidated Financial Statements

2016 Annual Report

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Industry Classification: (Continued)	Fair Value/ Market Value

CTM Holding, Inc.	$	3,334,691
		3,546,860

HEALTHCARE - 4.51%
Acelity L.P. Inc. fka Kinetic Concepts Inc.		1,057,500
Alere Inc.		951,750
CORA Health Services, Inc.		1,721,855
ECG Consulting Group		2,874,006
GD Dental Services LLC		284,393
HCA Holdings, Inc.		150,375
Healthcare Direct Holding Company		253,805
HealthSouth Corporation		586,238
Hill-Rom Holdings, Inc.		397,513
Kindred Healthcare, Inc.		935,000
RadNet Management Inc.		985,000
Select Medical Corporation		650,000
Surgical Care Affiliates, Inc.		947,835
TeamHealth Holdings Inc		267,313
Tenet Healthcare Corporation		639,813
TherOX, Inc.		—
Touchstone Health Partnership		—
		12,702,396

HOME CONSTRUCTION - 0.49%
Beazer Homes USA Inc.		345,600
William Lyon Homes		1,035,000
		1,380,600

INDEPENDENT - 2.79%
Antero Resources Corporation		818,000
EP Energy Corporation		755,011
Fieldwood Energy LLC		2,319,365
Jupiter Resources Inc.		862,500
Laredo Petroleum, Inc.		1,007,500
Precision Drilling Corporation		455,159
Sanchez Energy Corporation		950,000
Tullow Oil Plc		674,250
		7,841,785

	Fair Value/ Market Value
INDUSTRIAL OTHER - 7.75%
AFC – Dell Holding Corporation	$	2,718,642
Aquilex Holdings LLC		266,234
Clough, Harbour and Associates		1,178,497
Connecticut Electric, Inc.		2,399,647
Hartland Controls Holding Corporation		3,965,673
HVAC Holdings, Inc.		2,921,303
Mail Communications Group, Inc.		413,190
MC Sign Holdings LLC		1,929,627
Midwest Industrial Rubber, Inc.		3,515,809
Milacron Financial		513,750
O E C Holding Corporation		591,398
Smart Source Holdings LLC		983,299
Tranzonic Holdings LLC		437,166
		21,834,235

MEDIA & ENTERTAINMENT - 2.97%
BlueSpire Holding, Inc.		—
GlynnDevins Acquisition Corporation		216,097
HOP Entertainment LLC		—
Lamar Media Corp.		331,200
Money Mailer Equity LLC		3,453,798
Sinclair Television Group, Inc.		950,000
Sirius XM Radio Inc.		1,226,250
Univision Communications, Inc.		1,142,500
WMG Acquisition Corp.		1,052,500
		8,372,345

METALS & MINING - 1.25%
Commercial Metals Company		1,507,500
Constellium N.V.		798,724
SunCoke Energy		995,000
United States Steel Corp.		215,578
		3,516,802

MIDSTREAM - 1.70%
CVR Refining LLC		645,125
Ferrellgas Partners, L.P		1,491,468
Suburban Propane Partners, L.P.		1,015,000

See Notes to Consolidated Financial Statements

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

CONSOLIDATED SCHEDULE OF INVESTMENTS (CONTINUED)

December 31, 2016

Industry Classification: (Continued)	Fair Value/ Market Value

Summit Midstream Holdings, LLC	$	165,750
Sunoco LP		855,750
Tallgrass Operations LLC		600,463
		4,773,556

OIL FIELD SERVICES - 2.31%
Avantech Testing Services LLC		—
Hilcorp Energy Company		496,250
Hornbeck Offshore Services, Inc.		709,375
Oasis Petroleum Inc.		1,025,000
Petroplex Inv Holdings LLC		45,814
Seadrill Partners Finco, LLC		674,051
Teine Energy Ltd.		919,125
Topaz Marine S.A.		970,000
Welltec A/S		753,750
WPX Energy, Inc.		897,250
		6,490,615

PACKAGING - 1.36%
ASC Holdings, Inc.		1,568,627
Chase Packaging Corporation		191
Coveris Holdings S.A.		992,500
Signode Industrial Group		1,261,838
		3,823,156

PAPER - 1.84%
Clearwater Paper Corporation		734,999
Dunn Paper		3,430,000
P.H. Glatfelter Company		1,017,500
		5,182,499

PHARMACEUTICALS - 3.55%
Clarion Brands Holding Corp.		4,362,451
Endo Finance LLC		847,500
ERG Holding Company LLC		2,695,146
Mallinckrodt PLC		962,500
VRX Escrow Corp.		1,132,500
		10,000,097

	Fair Value/ Market Value
REFINING - 2.41%
CITGO Holding, Inc.	$	1,072,500
CITGO Petroleum Corporation		962,000
MES Partners, Inc.		2,373,468
Tristar Global Energy Solutions, Inc.		2,366,322
		6,774,290

RETAILERS - 0.23%
Wolverine World Wide, Inc.		641,025

TECHNOLOGY - 5.35%
Anixter, Inc.		1,037,500
Diamond 1 Finance Corp / Diamond 2 Finance Corp (Dell)		242,575
Glynlyon Holding Companies, Inc.		3,646,458
Infor (US), Inc.		236,735
JDA Escrow LLC		185,712
Kronos Incorporated		421,487
Micron Technology, Inc.		1,450,073
Sabre GLBL Inc.		257,744
Software Paradigms International Group, LLC		3,506,348
Veritext Corporation		3,500,000
Western Digital Corporation		584,155
		15,068,787

TRANSPORTATION SERVICES - 3.07%
MNX Holding Company		3,225,434
OPE KAG Finance Sub		1,767,500
Team Drive-Away Holdings LLC		1,796,706
VP Holding Company		813,922
Watco Companies, L.L.C.		1,035,000
		8,638,562

WIRELESS - 1.09%
Digicel Group Limited		904,470
Level 3 Communications Inc.		849,420
Numericable Group SA		1,026,250
Sprint Corporation		324,450
		3,104,590

Total Investments - 107.93% (Cost - $306,543,596)	$	303,912,183

See Notes to Consolidated Financial Statements

2016 Annual Report

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

History

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors) (the "Trust") commenced operations in 1971 as a Delaware corporation. Pursuant to an Agreement and Plan of Reorganization dated November 14, 1985, approved by shareholders, the Trust was reorganized as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts, effective November 28, 1985. In order to clarify the Trust's relationship to Barings LLC (formerly known as Babson Capital Management LLC), as of September 12, 2016, the Trust's name was changed to replace "Babson Capital Corporate Investors" with "Barings Corporate Investors".

The Trust is a diversified closed-end management investment company. Barings LLC ("Barings"), a wholly-owned indirect subsidiary of Massachusetts Mutual Life Insurance Company ("MassMutual"), acts as its investment adviser. The Trust's investment objective is to maintain a portfolio of securities providing a current yield and at the same time offering an opportunity for capital gains. The Trust's principal investments are privately placed, below-investment grade, long-term debt obligations. Such direct placement securities may, in some cases, be accompanied by equity features such as common stock, warrants, conversion rights, or other equity features and, occasionally, preferred stocks. The Trust typically purchases these investments, which are not publicly tradable, directly from their issuers in private placement transactions. These investments are typically mezzanine debt instruments with accompanying private equity securities made to small or middle market companies. In addition, the Trust may invest, subject to certain limitations, in marketable investment grade debt securities, other marketable debt (including high yield securities) and marketable common stocks. Below-investment grade or high yield securities have predominantly speculative characteristics with respect to the capacity of the issuer to pay interest and repay capital.

On January 27, 1998, the Board of Trustees authorized the formation of a wholly-owned subsidiary of the Trust ("CI Subsidiary Trust") for the purpose of holding certain investments. The results of CI Subsidiary Trust are consolidated in the accompanying financial statements. Footnote 2.D below discusses the Federal tax consequences of the CI Subsidiary Trust.

2.	Significant Accounting Policies

The following is a summary of significant accounting policies followed consistently by the Trust in the

preparation of its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP").

The Trustees have determined that the Trust is an investment company in accordance with Accounting Standards Codification ("ASC") 946, Financial Services - Investment Companies, for the purpose of financial reporting.

A. Fair Value Measurements:

Under U.S. GAAP, fair value represents the price that should be received to sell an asset (exit price) in an orderly transaction between willing market participants at the measurement date.

Determination of Fair Value

The determination of the fair value of the Trust's investments is the responsibility of the Trust's Board of Trustees (the "Trustees"). The Trustees have adopted procedures for the valuation of the Trust's securities and has delegated responsibility for applying those procedures to Barings. Barings has established a Pricing Committee which is responsible for setting the guidelines used in following the procedures adopted by the Trustees and ensuring that those guidelines are being followed. Barings considers all relevant factors that are reasonably available, through either public information or information directly available to Barings, when determining the fair value of a security. The Trustees meet at least once each quarter to approve the value of the Trust's portfolio securities as of the close of business on the last business day of the preceding quarter. This valuation requires the approval of a majority of the Trustees of the Trust, including a majority of the Trustees who are not interested persons of the Trust or of Barings. In approving valuations, the Trustees will consider reports by Barings analyzing each portfolio security in accordance with the procedures and guidelines referred to above, which include the relevant factors referred to below. Barings has agreed to provide such reports to the Trust at least quarterly. The consolidated financial statements include private placement restricted securities valued at $201,207,921 (71.46% of net assets) as of December 31, 2016 whose values have been estimated by the Trustees based on the process described above in the absence of readily ascertainable market values. Due to the inherent uncertainty of valuation, those estimated values may differ significantly from the values that would have been used had a ready market for the securities existed, and the differences could be material.

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Following is a description of valuation methodologies used for assets recorded at fair value:

Corporate Public Securities – Bank Loans, Corporate Bonds, Preferred Stocks and Common Stocks

The Trust uses external independent third-party pricing services to determine the fair values of its Corporate Public Securities. At December 31, 2016, 100% of the carrying value of these investments was from external pricing services. In the event that the primary pricing service does not provide a price, the Trust utilizes the pricing provided by a secondary pricing service.

Public debt securities generally trade in the over-the-counter market rather than on a securities exchange. The Trust's pricing services use multiple valuation techniques to determine fair value. In instances where significant market activity exists, the pricing services may utilize a market based approach through which quotes from market makers are used to determine fair value. In instances where significant market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, option adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal underlying prepayments, collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value.

The Trust's investments in bank loans are normally valued at the bid quotation obtained from dealers in loans by an independent pricing service in accordance with the Trust's valuation policies and procedures approved by the Trustees.

Public equity securities listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sales price of that day.

Annually, Barings conducts reviews of the primary pricing vendors to validate that the inputs used in that vendors' pricing process are deemed to be market observable as defined in the standard. While Barings is not provided access to proprietary models of the vendors, the reviews have included on-site walk-throughs of the pricing process, methodologies and control procedures for each asset class and level for which prices are provided. The review also includes an examination of the underlying inputs and assumptions for a sample of individual securities across asset classes, credit rating levels and various durations, a process Barings continues to perform annually. In addition, the pricing vendors have an established challenge process in place for all security valuations, which facilitates identification and resolution of prices

that fall outside expected ranges. Barings believes that the prices received from the pricing vendors are representative of prices that would be received to sell the assets at the measurement date (exit prices) and are classified appropriately in the hierarchy.

Corporate Restricted Securities – Corporate Bonds

The fair value of certain notes is determined using an internal model that discounts the anticipated cash flows of those notes using a specific discount rate. Changes to that discount rate are driven by changes in general interest rates, probabilities of default and credit adjustments. The discount rate used within the models to discount the future anticipated cash flows is considered a significant unobservable input. Significant increases/(decreases) in the discount rate would result in a significant (decrease)/increase to the notes' fair value.

The fair value of certain distressed notes is based on an enterprise waterfall methodology which is discussed in the equity security valuation section below.

Corporate Restricted Securities – Common Stock, Preferred Stock and Partnerships & LLC's

The fair value of equity securities is determined using an enterprise waterfall methodology. Under this methodology, the enterprise value of the company is first estimated and that value is then allocated to the company's outstanding debt and equity securities based on the documented priority of each class of securities in the capital structure. Generally, the waterfall proceeds from senior debt tranches of the capital structure to senior then junior subordinated debt, followed by each class of preferred stock and finally the common stock.

To estimate a company's enterprise value, the company's trailing twelve months earnings before interest, taxes, depreciation and amortization ("EBITDA") is multiplied by a valuation multiple.

Both the company's EBITDA and valuation multiple are considered significant unobservable inputs. Significant increases/(decreases) to the company's EBITDA and/or valuation multiple would result in significant increases/ (decreases) to the equity value. An increase/(decrease) to the discount would result in a (decrease)/increase to the equity value.

Short-Term Securities

Short-term securities, of sufficient credit quality, with more than sixty days to maturity are valued at fair value, using external independent third-party services. Short-term securities having a maturity of sixty days or less are valued at amortized cost, which approximates fair value.

2016 Annual Report

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Quantitative Information about Level 3 Fair Value Measurements

The following table represents quantitative information about Level 3 fair value measurements as of December 31, 2016:


	Fair Value	Valuation Technique	Unobservable Inputs	Range	Weighted Average
Bank Loans	$4,412,500	Broker Quote	Single Broker	98% to 98.3%	98.1%
	$6,984,560	Discounted Cash Flows	Discount Rate	8.8% to 9.2%	9.0%

Corporate Bonds	$136,204,881	Discounted Cash Flows	Discount Rate	9.3% to 17.1%	12.5%

	$10,734,805	Market Approach	Valuation Multiple	3.8x to 10.2x	7.3x

			EBITDA	$0.0 million to $9.2 million	$5.1 million

Equity Securities	$42,246,087	Market Approach	Valuation Multiple	3.8x to 12.2x	8.0x

			EBITDA	$0.0 million to $157.6 million	$27.1 million

Certain of the Trust's Level 3 investments have been valued using unadjusted inputs that have not been internally developed by the Trust, including recently purchased securities held at cost. As a result, fair value of assets of $1,607,588 have been excluded from the preceding table.

Fair Value Hierarchy

The Trust categorizes its investments measured at fair value in three levels, based on the inputs and assumptions used to determine fair value. These levels are as follows:

Level 1 – quoted prices in active markets for identical securities

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

Level 3 – significant unobservable inputs (including the Trust's own assumptions in determining the fair value of investments)

The following table summarizes the levels in the fair value hierarchy into which the Trusts' financial instruments are categorized as of December 31, 2016.

The fair values of our investments disaggregated into the three levels of the fair value hierarchy based upon the lowest level of significant input used in the valuation as of December 31, 2016 are as follows:


Assets:	Total		Level 1		Level 2		Level 3
Restricted Securities
Corporate Bonds	$	203,426,203	$	—	$	56,486,517	$	146,939,686
Bank Loans		10,414,560		—		—		10,414,560
Common Stock - U.S.		13,321,840		—		—		13,321,840
Preferred Stock		8,047,466		—		—		8,047,466
Partnerships and LLCs		22,484,369		—		—		22,484,369
Public Securities
Bank Loans		6,473,823		—		5,491,323		982,500
Corporate Bonds		28,845,261		—		28,845,261		—
Common Stock - U.S.		191		191		—		—
Short-term Securities		10,898,470		—		10,898,470		—
Total	$	303,912,183	$	191	$	101,721,571	$	202,190,421

See information disaggregated by security type and industry classification in the Consolidated Schedule of Investments.

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:


Assets:	Beginning balance at 12/31/2015		Included in earnings			Purchases		Sales			Prepayments			Transfers into Level 3		Transfers out of Level 3		Ending balance at 12/31/2016
Restricted Securities
Corporate Bonds	$	137,668,650	$	(9,961,618	)	$	44,297,056	$	(9,907,191	)	$	(15,157,211	)	$	—	$	—	$	146,939,686
Bank Loans		6,381,040		293,520			6,860,000		(3,570,000	)		—			—		—		10,414,560
Common Stock - U.S.		17,650,577		(688,129	)		2,563,162		(6,203,770	)		—			—		—		13,321,840
Preferred Stock		13,760,307		1,424,530			681,059		(7,818,430	)		—			—		—		8,047,466
Partnerships and LLCs		21,562,089		6,311,685			2,182,645		(7,572,050	)		—			—		—		22,484,369
Public Securities
Bank Loans		—		2,500			980,000		—			—			—		—		982,500
	$	197,472,663	$	(2,617,512	)	$	57,563,922	$	(35,071,441	)	$	(15,157,211	)	$	—	$	—	$	202,190,421

There were no transfers into or out of Level 1 or Level 2 assets.

Income, Gains and Losses included in Net Increase in Net Assets resulting from Operations for the period are presented in the following accounts on the Statement of Operations:


	Net Increase in Net Assets Resulting from Operations			Change in Unrealized Gains & (Losses) in Net Assets from assets still held
Interest (Amortization)	$	536,455		$	—
Net realized gain on investments before taxes	$	7,477,556			—
Net change in unrealized depreciation of investments before taxes	$	(10,631,523	)		(11,723,837	)

B. Accounting for Investments:

Investment transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis, including the amortization of premiums and accretion of discounts on bonds held using the yield-to-maturity method. The Trust does not accrue income when payment is delinquent and when management believes payment is questionable.

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

C. Use of Estimates:

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of

revenues and expenses during the reporting period. Actual results could differ from those estimates.

D. Federal Income Taxes:

The Trust has elected to be taxed as a "regulated investment company" under the Internal Revenue Code, and intends to maintain this qualification and to distribute substantially all of its net taxable income to its shareholders. In any year when net long-term capital gains are realized by the Trust, management, after evaluating the prevailing economic conditions, will recommend that the Trustees either designate the net realized long-term gains as undistributed and pay the Federal capital gains taxes thereon or distribute all or a portion of such net gains. In 2016, the fund incurred $776,619 of tax as a result of retaining capital gains.

The Trust is taxed as a regulated investment company and is therefore limited as to the amount of non-qualified income that it may receive as the result of operating a trade or business, e.g. the Trust's pro rata share of income allocable to the Trust by a partnership operating company. The Trust's violation

2016 Annual Report

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

of this limitation could result in the loss of its status as a regulated investment company, thereby subjecting all of its net income and capital gains to corporate taxes prior to distribution to its shareholders. The Trust, from time-to-time, identifies investment opportunities in the securities of entities that could cause such trade or business income to be allocable to the Trust. The CI Subsidiary Trust (described in Footnote 1 above) was formed in order to allow investment in such securities without adversely affecting the Trust's status as a regulated investment company.

Net investment income and net realized gains or losses of the Trust as presented under U.S. GAAP may differ from distributable taxable earnings due to earnings from the CI Subsidiary Trust as well as certain permanent and temporary differences in the recognition of income and realized gains or losses on certain investments. Permanent differences will result in reclassifications to the capital accounts. In 2016, the Trust decreased undistributed net investment income by $1,164,856, increased accumulated net realized gains by $1,262,232, increased retained net realized gain on investments by 2,256,038, and decreased additional paid in capital by $2,353,414 to more accurately display the Trust's capital financial position on a tax-basis in accordance with U.S. GAAP. These re-classifications had no impact on net asset value.

The Trusts' current income tax expense as shown on the Statement of Operations is $2,277,985 which is comprised of income tax expense on long term capital gains retained related to the regulated investment company of $776,619 as well as taxes related to the CI Subsidiary Trust as described in the table below of $1,501,366.

The CI Subsidiary Trust is not taxed as a regulated investment company. Accordingly, prior to the Trust receiving any distributions from the CI Subsidiary Trust, all of the CI Subsidiary Trust's taxable income and realized gains, including non-qualified income and realized gains, is subject to taxation at prevailing corporate tax rates.

The components of income taxes included in the consolidated Statement of Operations for the year ended December 31, 2016 were as follows:

Income tax expense (benefit)

Current:
Federal	$	967,016
State		534,350
Total current		1,501,366

Deferred:
Federal		(101,340	)
State		(13,636	)
Total deferred		(114,976	)

Total income tax expense from continuing operations	$	1,386,390

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective tax basis.

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2016 were as follows:

Deferred tax liabilities:

Unrealized gain on investments		1,013,201

Total deferred tax liabilities		1,013,201
Net deferred tax liability	$	(1,013,201	)

The Trust recognizes a tax benefit from an uncertain position only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority's widely understood administrative practices and precedents. If this threshold is met, the Trust measures the tax benefit as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions not deemed to meet the "more-likely-than-not" threshold are reserved and recorded as a tax benefit or expense in the current year. All penalties and interest associated with income taxes are included in income tax expense. The Trust has evaluated and determined that the tax positions did not have a material effect on the Trust's financial position and results of operations for the year ended December 31, 2016.

A reconciliation of the differences between the Trust's income tax expense and the amount computed by applying the prevailing U.S. Federal tax rate to pretax

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

income for the year ended December 31, 2016 is as follows:


	Amount		Percentage

Provision for income taxes at the U.S. federal rate	$	855,637		34.00%

State tax, net of federal effect		520,714		20.69%

Change in valuation allowance		—		0.00%

Other		10,039		0.40%

Income tax expense	$	1,386,390		55.09%

Each of the Trust's Federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service.

E. Distributions to Shareholders:

The Trust records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. The Trust's net investment income dividend is declared four times per year, in April, July, October, and December. The Trust's net realized capital gain distribution, if any, is declared in December.

The components of capital shown in the following table represent the Trust's undistributed net investment income, undistributed net capital gain, losses the Trust may be able to offset against gains in future taxable years, as well as unrealized appreciation (depreciation) on securities and other fund investments, if any, at December 31, 2016, each of which determined on a U.S. Federal tax basis:

Undistributed (Overdistributed) Net Investment Income		Undistributed Net Capital Gain		Accumulated Loss Carryforward		Net Unrealized Appreciation (Depreciation) on Securities and Other Investments
$	2,808,212	$	0	$	0	$	(5,764,619	)

The tax character of distributions declared during the years ended December 31, 2016 and 2015 was as follows:

Distributions paid from:	2016		2015

Ordinary Income	$	23,688,009	$	23,539,826

Long-term Capital Gains	$	—	$	—

3.	Investment Services Contract

A. Services:

Under an Investment Services Contract (the "Contract") with the Trust, Barings agrees to use its best efforts to present to the Trust a continuing and suitable investment program consistent with the investment objectives and policies of the Trust. Barings represents the Trust in any negotiations with issuers, investment banking firms, securities brokers or dealers and other institutions or investors relating to the Trust's investments. Under the Contract, Barings also provides administration of the day-to-day operations of the Trust and provides the Trust with office space and office equipment, accounting and bookkeeping services, and necessary executive, clerical and secretarial personnel for the performance of the foregoing services.

B. Fee:

For its services under the Contract, Barings is paid a quarterly investment advisory fee of 0.3125% of the net asset value of the Trust as of the last business day of each fiscal quarter, which is approximately equal to 1.25% annually. A majority of the Trustees, including a majority of the Trustees who are not interested persons of the Trust or of Barings, approve the valuation of the Trust's net assets as of such day.

4.	Senior Secured Indebtedness

MassMutual holds the Trust's $30,000,000 Senior Fixed Rate Convertible Note (the "Note") issued by the Trust on November 15, 2007. The Note is due November 15, 2017 and accrues interest at 5.28% per annum. MassMutual, at its option, can convert the principal amount of the Note into common shares. The dollar amount of principal would be converted into an equivalent dollar amount of common shares based upon the average price of the common shares for ten business days prior to the notice of conversion. For the year ended December 31, 2016, the Trust incurred total interest expense on the Note of $1,584,000.

The Trust may redeem the Note, in whole or in part, at the principal amount proposed to be redeemed together with the accrued and unpaid interest thereon through the redemption date plus a Make Whole Premium. The Make Whole Premium equals the excess of (i) the present value of the scheduled payments of principal and interest which the Trust would have paid but for the proposed redemption, discounted at the rate of interest of U.S. Treasury obligations whose maturity approximates that of the Note plus 0.50% over (ii) the principal of the Note proposed to be redeemed.

2016 Annual Report

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Management estimates that the fair value of the Note was $30,835,320 as of December 31, 2016. The fair value of the Note is categorized as a Level 3 under ASC 820.

5.	Purchases and Sales of Investments

	For the year ended 12/31/2016
	Cost of Investments Acquired		Proceeds from Sales or Maturities

Corporate restricted securities	$	78,502,579	$	73,978,189

Corporate public securities		10,463,105		28,558,396

The difference between book-basis and tax-basis cost is primarily due to holdings of partnerships. The net unrealized depreciation of investments for financial reporting and Federal tax purposes as of December 31, 2016 is $2,631,413 and consists of $26,362,755 appreciation and $28,994,168 depreciation.

Net unrealized depreciation of investments on the Statement of Assets and Liabilities reflects the balance net of a deferred tax accrual of $1,013,201 on net unrealized losses on the CI Subsidiary Trust.

6.	Quarterly Results of Investment Operations (Unaudited)

	March 31, 2016
	Amount		Per Share
Investment income	$	6,313,481
Net investment income		4,808,831	$	0.24
Net realized and unrealized loss on investments (net of taxes)		1,368,826		0.07


	June 30, 2016
	Amount		Per Share
Investment income	$	7,014,018
Net investment income		5,503,645	$	0.28
Net realized and unrealized gain on investments (net of taxes)		2,858,595		0.15

	September 30, 2016
	Amount			Per Share
Investment income	$	6,815,924
Net investment income		5,290,597		$	0.27
Net realized and unrealized gain on investments (net of taxes)		6,058,772		$	0.31


	December 31, 2016
	Amount			Per Share
Investment income	$	8,039,384
Net investment income		6,568,766		$	0.33
Net realized and unrealized loss on investments (net of taxes)		(5,217,976	)		(0.26	)

7.	Investment Risks

In the normal course of its business, the Trust trades various financial instruments and enters into certain investment activities with investment risks. These risks include: (i) market risk, (ii) volatility risk and (iii) credit, counterparty and liquidity risk. It is the Trust's policy to identify, measure and monitor risk through various mechanisms including risk management strategies and credit policies. These include monitoring risk guidelines and diversifying exposures across a variety of instruments, markets and counterparties. There can be no assurance that the Trust will be able to implement its credit guidelines or that its risk monitoring strategies will be successful.

8.	Commitments and Contingencies

During the normal course of business, the Trust may enter into contracts and agreements that contain a variety of representations and warranties. The exposure, if any, to the Trust under these arrangements is unknown as this would involve future claims that may or may not be made against the Trust and which have not yet occurred. The Trust has no history of prior claims related to such contracts and agreements.

At December 31, 2016, the Trust had the following unfunded commitments:

Investment	Unfunded Amount

CORA Health Services, Inc.	$	1,807,693

HVAC Holdings, Inc.	$	1,218,493

Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

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

For the year ended December 31, 2016, the Trust paid its Trustees aggregate remuneration of $317,400. During the year, the Trust did not pay any compensation to any of its Trustees who are "interested persons" (as defined by the 1940 Act) of the Trust. The Trust classifies Messrs. Noreen and Joyal as "interested persons" of the Trust.

All of the Trust's officers are employees of Barings or MassMutual. Pursuant to the Contract, the Trust does not compensate its officers who are employees of Barings or MassMutual (except for the Chief Compliance Officer of the Trust unless assumed by Barings). For the year ended December 31, 2016, Barings paid the compensation of the Chief Compliance Officer of the Trust.

Mr. Noreen, one of the Trust's Trustees, is an "affiliated person" (as defined by the 1940 Act) of MassMutual and Barings.

The Trust did not make any payments to Barings for the year ended December 31, 2016, other than amounts payable to Barings pursuant to the Contract.

10.	Certifications

As required under New York Stock Exchange ("NYSE") Corporate Governance Rules, the Trust's principal executive officer has certified to the NYSE that he was not aware, as of the certification date, of any violation by the Trust of the NYSE's Corporate Governance listing standards. In addition, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and related SEC rules, the Trust's principal executive and principal financial officers have made quarterly certifications, included in filings with the SEC on Forms N-CSR and N-Q, relating to, among other things, the Trust's disclosure controls and procedures and internal control over financial reporting, as applicable.

11.	Subsequent Events

The Trust has evaluated the possibility of subsequent events after the balance sheet date of December 31, 2016, through the date that the financial statements are issued. The Trust has determined that there are no material events that would require recognition or disclosure in this report through this date.

2016 Annual Report

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Shareholders and Board of Trustees of Barings Corporate Investors:

We have audited the accompanying consolidated statement of assets and liabilities of Barings Corporate Investors (f/k/a Babson Capital Corporate Investors) (the "Trust"), including the consolidated schedule of investments, as of December 31, 2016, and the related consolidated statements of operations and cash flows for the year then ended, the consolidated statements of changes in net assets for each of the years in the two-year period then ended, and the consolidated selected financial highlights for each of the years in the five-year period then ended. These consolidated financial statements and consolidated selected financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these consolidated financial statements and consolidated selected financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements and consolidated selected financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2016, by correspondence with custodian and counterparties. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements and consolidated selected financial highlights referred to above present fairly, in all material respects, the financial position of Barings Corporate Investors (f/k/a Babson Capital Corporate Investors) as of December 31, 2016, the consolidated results of their operations and cash flows for the year then ended, the consolidated changes in their net assets for each of the years in the two-year period then ended, and the consolidated selected financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Boston, Massachusetts

February 24, 2017

Barings Corporate Investors

INTERESTED TRUSTEES


Name (Age), Address	Position With The Trust	Office Term / Length of Time Served	Principal Occupations During Past 5 Years	Portfolios Overseen in Fund Complex	Other Directorships Held by Director


Clifford M. Noreen* (59) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Trustee, Chairman	Term expires 2018; Trustee since 2009	Deputy Chief Investment Officer and Managing Director (since 2016), MassMutual; President (2008-2016), Vice Chairman (2007-2008), Member of the Board of Managers (2006-2016), Managing Director (2000-2016), Barings; President (2005-2009), Vice President (1993-2005) of the Trust.	2	Chairman and Trustee (since 2009), President (2005-2009), Vice President (1993-2009), Barings Participation Investors; President (since 2009), Senior Vice President (1996-2009), HYP Management LLC (LLC Manager); Director (2005-2013), MassMutual Corporate Value Limited (investment company); Director (2005-2013), MassMutual Corporate Value Partners Limited (investment company); Director (since 2008), Jefferies Finance LLC (finance company); Chairman and Chief Executive Officer (since 2009), Manager (since 2007), MMC Equipment Finance LLC; Director (2011-2016), Wood Creek Capital Management, LLC (investment advisory firm); Chairman (since 2009), Trustee (since 2005), President (2005-2009), CI Subsidiary Trust and PI Subsidiary Trust; Member of Investment Committee (since 1999), Diocese of Springfield; and Member of Investment Committee (since 2015), Baystate Health Systems

*	Mr. Noreen is classified as an "interested person" of the Trust and Barings (as defined by the Investment Company Act of 1940, as amended) because of his position as an Officer of the Trust and his former position as President of Barings.

2016 Annual Report

INTERESTED TRUSTEES


Name (Age), Address	Position With The Trust	Office Term / Length of Time Served	Principal Occupations During Past 5 Years	Portfolios Overseen in Fund Complex	Other Directorships Held by Director


Robert E. Joyal* (72) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Trustee	Term expires 2019; Trustee since 2003	Retired (since 2003); President (2001-2003), Barings; and President (1993-2003) of the Trust.	95	Trustee (since 2003), President (1993-2003), Barings Participation Investors; Director (2006-2014), Jefferies Group, Inc. (financial services); Director (2007-2011), Scottish Re Group Ltd. (global life reinsurance specialist); Trustee (since 2003), MassMutual Select Funds (an open-end investment company advised by MassMutual); Trustee (since 2003), MML Series Investment Fund (an open-end investment company advised by MassMutual); Trustee (since 2012), MML Series Investment Fund II (an open-ended investment company advised by MassMutual); Trustee (since 2012), MassMutual Premier Funds (an open-ended investment company advised by MassMutual); Director (since 2012), Ormat Technologies, Inc. (a geothermal energy company); Director (since 2013), Leucadia National Corporation (holding company owning businesses ranging from insurance to telecommunications); and Director (2013-2016), Baring Asset Management Korea Limited (company that engages in asset management, business administration and investment management).

Mr. Joyal retired as President of Barings in June 2003. In addition and as noted above, Mr. Joyal is a director of Leucadia National Corporation, which is the parent company of Jefferies Group, Inc., and a former Director of Jefferies Group, Inc., which has a wholly-owned broker-dealer subsidiary that may execute portfolio transactions and/or engage in principal transactions with the Trust, other investment companies advised by Barings or any other advisory accounts over which Barings has brokerage placement discretion. Accordingly, the Trust has determined to classify Mr. Joyal as an "interested person" of the Trust and Barings (as defined by the Investment Company Act of 1940, as amended).

Barings Corporate Investors

INDEPENDENT TRUSTEES

Name (Age), Address	Position With The Trust	Office Term / Length of Time Served	Principal Occupations During Past 5 Years	Portfolios Overseen in Fund Complex	Other Directorships Held by Director


Michael H. Brown (59) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Trustee/ Nominee	Term expires 2017; Trustee since 2005	Private Investor; and Managing Director (1994-2005), Morgan Stanley.	2	Trustee (since 2005), Barings Participation Investors; Independent Director (2006-2014), Invicta Holdings LLC and its subsidiaries (a derivative trading company owned indirectly by MassMutual).

Barbara M. Ginader (60) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Trustee/ Nominee	Term expires 2017; Trustee since 2013	Managing Director and General Partner (since 1993), Boston Ventures Management (private equity firm).	2	Trustee (since 2013), Barings Participation Investors; Managing Director (since 1993), Boston Ventures VI L.P. (private equity fund); Managing Director (since 1993), Boston Ventures V L.P. (private equity fund); Member of the Board Overseers (2013-2014), MSPCA-Angell; Member of the Grants Committee (2013-2014), IECA Foundation; and President of the Board (2006-2012), Codman Academy Public Charter School.

Edward P. Grace III (66) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Trustee	Term expires 2018; Trustee since 2012	President (since 1997), Phelps Grace International, Inc. (investment management); Managing Director (since 1998), Grace Ventures Partners LP (venture capital fund); Senior Advisor (since 2011), Angelo Gordon & Co. (investment adviser).	2	Trustee (since 2012), Barings Participation Investors; Director (since 2010), Larkburger, Inc. (restaurant chain); Director (since 2012), Benihana, Inc. (restaurant chain); Director (since 2011), Firebirds Wood Fired Holding Corporation (restaurant chain), Director (since 1998), Shawmut Design and Construction (construction management and general contracting firm); Director (2004-2012), Not Your Average Joe's, Inc. (restaurant chain).

Susan B. Sweeney (64) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Trustee	Term expires 2019; Trustee since 2012	Retired (since 2014); Senior Vice President and Chief Investment Officer (2010-2014), Selective Insurance Company of America; Senior Managing Director (2008-2010), Ironwood Capital.	95	Trustee (since 2012), Barings Participation Investors; Trustee (since 2009), MassMutual Select Funds (an open-ended investment company advised by MassMutual); Trustee (since 2009), MML Series Investment Fund (an open-ended investment company advised by MassMutual); Trustee (since 2012), MassMutual Premier Funds (an open-ended investment company advised by MassMutual); Trustee (since 2012), MML Series Investment Fund II (an open-ended investment company advised by MassMutual).

2016 Annual Report

INDEPENDENT TRUSTEES

Name (Age), Address	Position With The Trust	Office Term / Length of Time Served	Principal Occupations During Past 5 Years	Portfolios Overseen in Fund Complex	Other Directorships Held by Director


Maleyne M. Syracuse (60) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Trustee/ Nominee	Term expires 2017; Trustee since 2007	Private Investor; Managing Director (1999-2000), JP Morgan Securities, Inc. (investments and banking); Managing Director (1999-2000), Deutsche Bank Securities; Managing Director (1981-1999), Bankers Trust/ BT Securities	2	Trustee (since 2007), Barings Participation Investors.

Barings Corporate Investors

OFFICERS OF THE TRUST


Name (Age), Address	Position With The Trust	Office Term / Length of Time Served	Principal Occupations During Past 5 Years


Robert M. Shettle (49) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	President	Since 2016	Vice President (2015-2016) of the Trust; President (since 2016), Vice President (2015-2016), Barings Participation Investors; Managing Director (since 2006), Director (1998-2006), Barings; President (since 2016), Vice President (2005-2016), CI Subsidiary Trust and PI Subsidiary Trust.

Janice M. Bishop (52) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Vice President, Secretary and Chief Legal Officer	Since 2015	Associate Secretary (2008-2015) of the Trust; Vice President, Secretary and Chief Legal Officer (since 2015), Associate Secretary (2008-2015), Barings Participation Investors; Vice President, Secretary and Chief Legal Officer (since 2013), Barings Funds Trust; Vice President, Secretary and Chief Legal Officer (since 2012), Barings Global Short Duration High Yield Fund; Senior Counsel and Managing Director (since 2014), Counsel (2007-2014), Barings; Vice President and Secretary (since 2015), Assistant Secretary (2008-2015), CI Subsidiary Trust and PI Subsidiary Trust.

James M. Roy (54) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Vice President and Chief Financial Officer	Since 2005	Treasurer (2003-2005), Associate Treasurer (1999-2003) of the Trust; Vice President and Chief Financial Officer (since 2005), Treasurer (2003-2005), Associate Treasurer (1999-2003), Barings Participation Investors; Managing Director (since 2005), Director (2000-2005), Barings; and Trustee (since 2005), Treasurer (since 2005), Controller (2003-2005), CI Subsidiary Trust and PI Subsidiary Trust.

Melissa M. LaGrant (43) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Chief Compliance Officer	Since 2006	Chief Compliance Officer (since 2006), Barings Participation Investors; Chief Compliance Officer (since 2013), Barings Finance LLC; Chief Compliance Officer (since 2013), Barings Funds Trust; Chief Compliance Officer (since 2012), Barings Global Short Duration High Yield Fund; Managing Director (since 2005), Barings.

Daniel J. Florence (44) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Treasurer	Since 2008	Associate Treasurer (2006-2008) of the Trust; Treasurer (since 2008), Associate Treasurer (2006-2008), Barings Participation Investors; and Director (since 2013), Associate Director (2008-2013), Analyst (2000-2008), Barings.

Sean Feeley (49) Barings Corporate Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Vice President	Since 2011	Vice President (since 2011), Barings Participation Investors; Vice President (since 2012), Barings Global Short Duration High Yield Fund; Managing Director (since 2003), Barings and Vice President (since 2011), CI Subsidiary Trust and PI Subsidiary Trust.

*	Officers hold their position with the Trust until a successor has been duly elected and qualified. Officers are generally elected annually by the Board of Trustees of the Trust. The officers were last elected on July 20, 2016.

2016 Annual Report

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Barings Corporate Investors (formerly known as Babson Capital Corporate Investors)

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Barings Corporate Investors (the "Trust") offers a Dividend Reinvestment and Share Purchase Plan (the "Plan"). The Plan provides a simple way for shareholders to add to their holdings in the Trust through the receipt of dividend shares issued by the Trust or through the investment of cash dividends in Trust shares purchased in the open market. A shareholder may join the Plan by filling out and mailing an authorization card to DST Systems, Inc., the Transfer Agent.

Participating shareholders will continue to participate until they notify the Transfer Agent, in writing, of their desire to terminate participation. Unless a shareholder elects to participate in the Plan, he or she will, in effect, have elected to receive dividends and distributions in cash. Participating shareholders may also make additional contributions to the Plan from their own funds. Such contributions may be made by personal check or other means in an amount not less than $10 nor more than $5,000 per quarter. Cash contributions must be received by the Transfer Agent at least five days (but no more then 30 days) before the payment date of a dividend or distribution.

Whenever the Trust declares a dividend payable in cash or shares, the Transfer Agent, acting on behalf of each participating shareholder, will take the dividend in shares only if the net asset value is lower than the market price plus an estimated brokerage commission as of the close of business on the valuation day. The valuation day is the last day preceding the day of dividend payment.

When the dividend is to be taken in shares, the number of shares to be received is determined by dividing the cash dividend by the net asset value as of the close of business on the valuation date or, if greater than net asset value, 95% of the closing share price. If the net asset value of the shares is higher than the market value plus an estimated commission, the Transfer Agent, consistent with obtaining the best price and execution, will buy shares on the open market at current prices promptly after the dividend payment date.

The reinvestment of dividends does not, in any way, relieve participating shareholders of any federal, state or local tax. For federal income tax purposes, the amount reportable in respect of a dividend received in newly-issued shares of the Trust will be the fair market value of the shares received, which will be reportable as ordinary income and/or capital gains.

As compensation for its services, the Transfer Agent receives a fee of 5% of any dividend and cash contribution (in no event in excess of $2.50 per distribution per shareholder.)

Any questions regarding the Plan should be addressed to DST Systems, Inc., Agent for Barings Corporate Investors' Dividend Reinvestment and Share Purchase Plan, P.O. Box 219086, Kansas City, MO 64121-9086.


Members of the Board of Trustees
Michael H. Brown* Private Investor	Barbara M. Ginader Managing Director and General Partner Boston Ventures Management	Edward P. Grace President Phelps Grace International, Inc
Robert E. Joyal Retired President, Barings	Clifford M. Noreen Deputy Chief Investment Officer Massachusetts Mutual Life Insurance Company	Susan B. Sweeney* Private Investor
Maleyne M. Syracuse* Private Investor

Officers
Clifford M. Noreen Chairman	Robert M. Shettle President	James M. Roy Vice President & Chief Financial Officer
Janice M. Bishop Vice President, Secretary & Chief Legal Officer	Sean Feeley Vice President	Daniel J. Florence Treasurer
Melissa M. LaGrant Chief Compliance Officer

* Member of the Audit Committee

ITEM 2. CODE OF ETHICS.

The Registrant adopted a Code of Ethics for Senior Financials Officers (the "Code") on October 17, 2003, which is available on the Registrant's website at www.barings.com/mci. During the period covered by this Form N-CSR, there were no amendments to, or waivers from, the Code.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Registrant's Board of Trustees has determined that Mr. Michael H. Brown, a Trustee of the Registrant and a member of its Audit Committee, is an audit committee financial expert. Mr. Brown is "independent" for purposes of this Item 3 as required by applicable regulation.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The Registrant has engaged its principal accountant, KPMG LLP, to perform audit services, audit-related services, tax services and other services during the past two fiscal years. The following table details the aggregate fees billed or expected to be billed for each of the last two fiscal years by KPMG LLP.

Fees Billed to the Registrant:

	KPMG LLP Year Ended December 31, 2016		KPMG LLP Year Ended December 31, 2015
Audit Fees	$	78,100	$	71,000
Audit-Related Fees		0		0
Tax Fees		45,665		45,665
All Other Fees		0		0
Total Fees	$	123,765	$	116,665

Non-Audit Fees Billed to Barings and MassMutual:

	KPMG LLP Year Ended December 31, 2016		KPMG LLP Year Ended December 31, 2015
Audit-Related Fees	$	1,239,527	$	1,393,808
Tax Fees		227,500		333,000
All Other Fees		35,000		23,100
Total Fees	$	1,502,027	$	1,749,908

The category "Audit Fees" refers to performing an audit of the Registrant's annual financial statements or services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements for those fiscal years. The category "Audit-Related Fees" reflects fees billed by KPMG LLP for various non-audit and non-tax services rendered to the Registrant, Barings and MassMutual, such as a SOC - 1 review, consulting and agreed upon procedures reports. Preparation of Federal, state and local income tax and tax compliance work are representative of the fees reported in the "Tax Fees" category. The category "All Other Fees" represents fees billed by KPMG LLP for consulting rendered to the Registrant, Barings and MassMutual.

The Sarbanes-Oxley Act of 2002 and its implementing regulations allow the Registrant's Audit Committee to establish a pre-approval policy for certain services rendered by the Registrant's principal accountant. During 2016, the Registrant's Audit Committee approved all of the services rendered to the Registrant by KPMG LLP and did not rely on such a pre-approval policy for any such services.

The Audit Committee has also reviewed the aggregate fees billed for professional services rendered by KPMG LLP for 2015 and 2016 for the Registrant and for the non-audit services provided to Barings, and Barings' parent, MassMutual. As part of this review, the Audit Committee considered whether the provision of such non-audit services was compatible with maintaining the principal accountant's independence.

The 2015 fees billed represent final 2015 amounts, which may differ from the preliminary figures available as of the filing date of the Registrant's 2015 Annual Form N-CSR and includes, among other things, fees for services that may not have been billed as of the filing date of the Registrant's 2015 Annual Form N-CSR, but are now properly included in the 2015 fees billed to the Registrant, Barings and MassMutual.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

The Registrant maintains an Audit Committee composed exclusively of Trustees of the Registrant who qualify as "independent" Trustees under the current listing standards of the New York Stock Exchange and the rules of the U.S. Securities and Exchange Commission. The Audit Committee operates pursuant to a written Audit Committee Charter, which is available (1) on the Registrant's website, www.barings.com/mci; and (2) without charge, upon request, by calling, toll-free 866-399-1516. The current members of the Audit Committee are Michael H. Brown, Susan B. Sweeney and Maleyne M. Syracuse.

ITEM 6. SCHEDULE OF INVESTMENTS

A schedule of investments for the Registrant is included as part of this report to shareholders under Item 1 of this Form N-CSR.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

The Registrant's Board of Trustees has delegated proxy voting responsibilities relating to the voting securities held by the Registrant to its investment adviser, Barings LLC ("Barings"). A summary of Barings' proxy voting policies and procedures are set forth below.

Summary of Barings' Proxy Voting Policy:

Barings understands that the voting of proxies is an integral part of its investment management responsibility and believes, as a general principle, that proxies should be acted upon (voted or abstained) solely in the best interest of its clients (i.e. in a manner believed by Barings to best pursue a client's investment objectives). To implement this general principle, Barings engages a proxy service provider (the "Service Provider") that is responsible for processing and maintaining records of proxy votes. In addition, the Service Provider will retain the services of an independent third party research provider (the "Research Provider") to provide research and recommendations on proxies. It is Barings' Proxy Voting Policy to generally vote proxies in accordance with the recommendations of the Research Provider. In circumstances where the Research Provider has not provided recommendations with respect to a proxy, Barings will vote in accordance with the Research Provider's proxy voting guidelines (the "Guidelines"). In circumstances where the Research Provider has not provided a recommendation or has not contemplated an issue within its Guidelines, the proxy will be analyzed on a case-by-case basis.

Barings recognizes that there could be times when it is in the best interest of clients to vote proxies (i) against the Research Provider's recommendations or (ii) in instances where the Research Provider has not provided a recommendation vote against the Guidelines. Barings can vote, in whole or in part, against the Research Provider's recommendations or Guidelines, as it deems appropriate. The procedures set forth in the Proxy Voting Policy are designed to ensure that votes against the Research Provider's recommendations or Guidelines are made in the best interests of clients and are not the result of any material conflict of interest (a "Material Conflict"). For purposes of the Proxy Voting Policy, a Material Conflict is defined as any position, relationship or interest, financial or otherwise, of Barings or a Barings associate that could reasonably be expected to affect the independence or judgment concerning proxy voting.

Summary of Barings' Proxy Voting Procedures:

Barings will vote all client proxies for which it has proxy voting discretion, where no Material Conflict exists, in accordance with the Research Provider's recommendations or Guidelines, unless (i) Barings is unable or determines not to vote a proxy in accordance with the Proxy Voting Policy or (ii) an authorized investment person or designee (a "Proxy Analyst") determines that it is in the client's best interests to vote against the Research Provider's recommendations or Guidelines. In such cases where a Proxy Analyst believes a proxy should be voted against the Research Provider's recommendations or Guidelines, the proxy administrator will vote the proxy in accordance with the Proxy Analyst's recommendation as long as (i) no other Proxy Analyst disagrees with such recommendation and (ii) no known Material Conflict is identified by the Proxy Analyst(s) or the proxy administrator. If a Material Conflict is identified by a Proxy Analyst or the proxy administrator, the proxy will be submitted to the Trading Practices Committee to determine how the proxy is to be voted in order to achieve that client's best interests.

No associate, officer, director or board of managers/directors of Barings or its affiliates (other than those assigned such responsibilities under the Proxy Voting Policy) can influence how Barings votes client proxies, unless such person has been requested to provide assistance by a Proxy Analyst or Trading Practices Committee member and has disclosed any known Material Conflict. Pre-vote communications with proxy solicitors are prohibited. In the event that pre-vote communications occur, it should be reported to the Trading Practices Committee or Barings' Chief Compliance Officer prior to voting. Any questions or concerns regarding proxy-solicitor arrangements should be addressed to Barings' Chief Compliance Officer.

Investment management agreements generally delegate the authority to vote proxies to Barings in accordance with Barings' Proxy Voting Policy. In the event an investment management agreement is silent on proxy voting, Barings should obtain written instructions from the client as to their voting preference. However, when the client does not provide written instructions as to their voting preferences, Barings will assume proxy voting responsibilities. In the event that a client makes a written request regarding voting, Barings will vote as instructed.

Obtaining a Copy of the Proxy Voting Policy:

Clients can obtain a copy of Barings' Proxy Voting Policy and information about how Barings voted proxies related to their securities, free of charge, by contacting the Chief Compliance Officer, Barings LLC, 1500 Main Street, Suite 2800, P.O. Box 15189, Springfield, MA 01115-5189, or calling toll-free, 1-877-766-0014.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

The following disclosure item is made as of the date of this Form N-CSR unless otherwise indicated.

PORTFOLIO MANAGER. Robert M. Shettle serves as the President of the Registrant (since June 2016) and as one of its Portfolio Managers. Mr. Shettle began his service to the Registrant in 2015 as a Vice President. With over 17 years of industry experience, Mr. Shettle is a Managing Director of Barings and Head of the North America Mezzanine and Private Equity Group of Barings. He joined Barings in 2006. Prior to joining Barings, he spent six years at Fleet National Bank as a Vice President and commercial loan officer and three years at Anderson Consulting. At Barings, he has focused on originating, analyzing, structuring and documenting mezzanine and private equity investments. Mr. Shettle holds a B.S. from the University of Connecticut and a M.B.A. from Rensselaer Polytechnic Institute. He is also a Chartered Financial Analyst. Mr. Shettle also presently serves as President of Barings Participation Investors, another closed-end management investment company advised by Barings.

PORTFOLIO MANAGEMENT TEAM. Mr. Shettle has primary responsibility for overseeing the investment of the Registrant's portfolio, with the day-to-day investment management responsibility of the Registrant's portfolio being shared with the following Barings' investment professional (together with the Portfolio Manager, the "Portfolio Team").

Sean Feeley is responsible for the day-to-day management of the Registrant's public high yield and investment grade fixed income portfolio. Mr. Feeley has been a Vice President of the Registrant since 2011. Mr. Feeley is a Managing Director of Barings and head of the High Yield Research Team with over 22 years of industry experience in high yield bonds and loans in various investment strategies. Prior to joining Barings in 2003, he was a Vice President at Cigna Investment Management in project finance and a Vice President at Credit Suisse in leveraged loan finance. Mr. Feeley holds a B.S. from Canisius College and an M.B.A. from Cornell University. Mr. Feeley is a Certified Public Accountant and a Chartered Financial Analyst. Mr. Feeley also serves as Vice President of Barings Participation Investors, another closed-end management investment company advised by Barings.

OTHER ACCOUNTS MANAGED BY THE PORTFOLIO TEAM. The members of the Registrant's Portfolio Team also have primary responsibility for the day-to-day management of other Barings advisory accounts, including, among others, closed-end and open-end investment companies, private investment funds, MassMutual-affiliated accounts, as well as separate accounts for institutional clients. These advisory accounts are identified below.

NUMBER OF

ACCOUNTS

APPROXIMATE

TOTAL

WITH

ASSET SIZE OF

NUMBER

APPROXIMATE

PERFORMANCE-

PORTFOLIO

ACCOUNT

TOTAL ASSET

BASED

BASED ADVISORY

TEAM

(A)	Account asset size has been calculated as of December 31, 2016.

(B)	Asset size in millions.

(C)	Represents accounts advised by Barings over which Messrs. Lloyd, Feeley and Shettle have day-to-day management responsibilities.

(D)	Mr. Lloyd, as head of Barings' Global Private Finance Group, has overall responsibility for all private placement mezzanine assets managed by Barings. Except for the accounts noted in the table above, Mr. Lloyd is not primarily responsible for the day-to-management of the other accounts managed by Barings' Global Private Finance Group.

(E)	Mr. Feeley manages the high yield sector of the general investment account of Massachusetts Mutual Life Insurance Company and C.M. Life Insurance Company; however, these assets are not represented in the table above.

(F)	Mr. Shettle manages the private placement mezzanine debt securities of the general investment account of Massachusetts Mutual Life Insurance Company and C.M. Life Insurance Company; however, these assets are not represented in the table above.

Portfolio Management Team:		Dollar Range of Beneficially Owned* Equity Securities of the Registrant:

Eric Lloyd		None
Sean Feeley		None
Robert M. Shettle		None

(Registrant):	Barings Corporate Investors


By:	/s/ Robert M. Shettle
	Robert M. Shettle, President

Date:	March 10, 2017