The Trust	Bloomberg Barclays U.S. Corporate High Yield Index	Russell 2000 Index
1 Year	14.29%	7.50%	14.65%
3 Years	9.71%	6.35%	9.96%
5 Years	10.73%	5.78%	14.12%
10 Years	9.86%	8.03%	8.71%
25 Years	12.42%	7.72%	9.54%

2017 Dividends	Record Date		Total Paid				Ordinary Income				Short-Term Gains				Long-Term Gains
Regular	5/4/2017			0.2700				0.2700				—				—
Regular	8/1/2017			0.2700				0.2700				—				—
Regular	10/30/2017			0.2700				0.2700				—				—
Regular	12/29/2017			0.2700				0.2700				—				—
				1.0800				1.0800				0.0000				0.0000

	Amount per Share				Form 2439
2017 Gains Retained		0.3619			Line 1a
Long-Term Gains Retained		0.3619
Taxes Paid		0.1266			Line 2*
Basis Adjustment		0.2353			**

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
$ 1.08	5.0379%	0.0543	5.0379%	0.0543	0%	0.0000

BARINGS PARTICIPATION 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	12-38
Notes to Consolidated Financial Statements	39-46
Report of Independent Registered Public Accounting Firm	47-48
Interested Trustees	49-50
Independent Trustees	51-52
Officers of the Trust	53

Assets:
Investments
(See Consolidated Schedule of Investments)
Corporate restricted securities at fair value
(Cost - $104,210,707)		$	107,418,558
Corporate restricted securities at market value
(Cost - $15,242,021)			15,580,225
Corporate public securities at market value
(Cost - $29,491,207)			30,258,297
Short-term securities at amortized cost			6,043,541
Total investments (Cost - $154,987,476)			159,300,621
Cash			5,773,177
Interest receivable			1,294,951
Other assets			26,014
Total assets			166,394,763
Liabilities:
Note payable			15,000,000
Dividend payable			2,823,704
Tax payable			1,813,349
Deferred tax liability			769,713
Investment advisory fee payable			327,330
Interest payable			27,267
Accrued expenses			153,335
Total liabilities			20,914,698
Commitments and Contingencies (See Note 8)
Total net assets		$	145,480,065
Net Assets:
Common shares, par value $.01 per share		$	104,581
Additional paid-in capital			94,487,805
Retained net realized gain on investments, prior years			44,296,000
Undistributed net investment income			730,313
Accumulated net realized gain on investments			2,317,934
Net unrealized appreciation of investments			3,543,432
Total net assets		$	145,480,065
Common shares issued and outstanding (14,787,750 authorized)			10,458,162
Net asset value per share		$	13.91

Investment Income:
Interest		$	12,456,742
Dividends			1,396,891
Other			230,464
Total investment income			14,084,097
Expenses:
Investment advisory fees			1,306,752
Interest			613,500
Professional fees			265,452
Trustees' fees and expenses			231,000
Reports to shareholders			96,000
Custodian fees			23,997
Other			207,315
Total expenses			2,744,016
Investment income - net			11,340,081
Net realized and unrealized gain on investments:
Net realized gain on investments before taxes			4,160,167
Income tax expense			(1,880,059	)
Net realized gain on investments after taxes			2,280,108
Net increase (decrease) in unrealized appreciation (depreciation) of investments before taxes			5,872,028
Net (increase) decrease in deferred income tax expense			(354,699	)
Net increase (decrease) in unrealized appreciation (depreciation) of investments after taxes			5,517,329
Net gain on investments			7,797,437
Net increase in net assets resulting from operations		$	19,137,518

Net increase in cash:
Cash flows from operating activities:
Purchases/Proceeds/Maturities from short-term portfolio securities, net		$	4,027,008
Purchases of portfolio securities			(37,484,672	)
Proceeds from disposition of portfolio securities			35,320,991
Interest, dividends and other income received			13,255,894
Interest expense paid			(613,500	)
Operating expenses paid			(2,115,805	)
Income taxes paid			(571,013	)
Net cash provided by operating activities			11,818,903
Cash flows from financing activities:
Cash dividends paid from net investment income			(11,246,473	)
Receipts for shares issued on reinvestment of dividends			1,001,726
Net cash used for financing activities			(10,244,747	)
Net increase in cash			1,574,156
Cash - beginning of year			4,199,021
Cash - end of year		$	5,773,177
Reconciliation of net increase in net assets to net cash provided by operating activities:
Net increase in net assets resulting from operations		$	19,137,518
Increase in investments			(9,603,591	)
Decrease in interest receivable			453,563
Decrease in receivable for investments sold			152,188
Decrease in other assets			769
Increase in tax payable			1,309,046
Increase in deferred tax liability			354,699
Increase in investment advisory fee payable			19,965
Decrease in accrued expenses			(5,254	)
Total adjustments to net assets from operations			(7,318,615	)
Net cash provided by operating activities		$	11,818,903

		2017				2016
Increase in net assets:
Operations:
Investment income - net		$	11,340,081			$	10,324,242
Net realized gain on investments after taxes			2,280,108				1,279,991
Net change in unrealized appreciation of investments after taxes			5,517,329				38,399
Net increase in net assets resulting from operations			19,137,518				11,642,632
Increase from common shares issued on reinvestment of dividends
Common shares issued (2017 - 71,989; 2016 - 57,782)			1,001,726				806,973
Dividends to shareholders from:
Net investment income (2017 - $1.08 per share; 2016 - $1.08 per share)			(11,265,910	)			(11,192,508	)
Total increase in net assets			8,873,334				1,257,097
Net assets, beginning of year			136,606,731				135,349,634
Net assets, end of year (including undistributed net investment income of $730,313 and $568,739, respectively)		$	145,480,065			$	136,606,731

		For the years ended December 31,
		2017				2016				2015				2014				2013
Net asset value:
Beginning of year		$	13.15			$	13.10			$	13.35			$	12.83			$	12.56
Net investment income (a)			1.09				1.00				0.95				1.04				1.00
Net realized and unrealized gain (loss) on investments			0.75				0.13				(0.12	)			0.57				0.35
Total from investment operations			1.84				1.13				0.83				1.61				1.35
Dividends from net investment income to common shareholders			(1.08	)			(1.08	)			(1.08	)			(0.96	)			(1.08	)
Dividends from realized gain on investments to common shareholders			—				—				—				(0.12	)			—
Increase from dividends reinvested			(0.00	)(b)			(0.00	)(b)			(0.00	)(b)			(0.01	)			(0.00	)(b)
Total dividends			(1.08	)			(1.08	)			(1.08	)			(1.09	)			(1.08	)
Net asset value: End of year		$	13.91			$	13.15			$	13.10			$	13.35			$	12.83
Per share market value: End of year		$	14.10			$	14.20			$	13.75			$	13.23			$	12.88
Total investment return
Net asset value (c)			14.29%				8.75%				6.23%				13.61%				10.97%
Market value (c)			7.21%				11.45%				12.66%				12.54%				0.47%
Net assets (in millions):
End of year		$	145.48			$	136.61			$	135.35			$	137.57			$	131.42
Ratio of total expenses to average net assets			3.23%				2.26%				2.17%				2.84%				2.15%
Ratio of operating expenses to average net assets			1.49%				1.35%				1.49%				1.49%				1.51%
Ratio of interest expense to average net assets			0.43%				0.44%				0.44%				0.45%				0.47%
Ratio of income tax expense to average net assets			1.31%				0.47%				0.24%				0.90%				0.17%
Ratio of net investment income to average net assets			7.92%				7.45%				6.95%				7.82%				7.77%
Portfolio turnover			24%				31%				30%				32%				30%

Senior borrowings:
Total principal amount (in millions)		$	15			$	15			$	15			$	15			$	15
Asset coverage per $1,000 of indebtedness		$	10,699			$	10,107			$	10,023			$	10,171			$	9,761

Corporate Restricted Securities - 84.55%: (A)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
Private Placement Investments - 73.84%: (C)
1A Smart Start, Inc.
A designer, distributor and lessor of ignition interlock devices ("IIDs"). IIDs are sophisticated breathalyzers wired to a vehicle's ignition system.
11.75% Second Lien Term Loan due 12/22/2022		$	1,725,000			12/21/17				$	1,690,703			$	1,690,427
ABC Industries, Inc.
A manufacturer of mine and tunneling ventilation products in the U.S.
13% Senior Subordinated Note due 07/31/2019		$	109,335			08/01/12					105,602				109,027
Preferred Stock Series A (B)		125,000 shs.				08/01/12					125,000				284,020
Warrant, exercisable until 2022, to purchase common stock at $.02 per share (B)		22,414 shs.				08/01/12					42,446				48,427
											273,048				441,474
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)		1,945 uts.					*				207,911				22,269
* 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		$	1,215,408			03/27/15					1,201,605				1,227,562
Preferred Stock (B)		1,122 shs.				03/27/15					112,154				141,180
Common Stock (B)		346 shs.				03/27/15					346				-
											1,314,105				1,368,742
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.
Limited Liability Company Unit		288 uts.				11/18/14					288,000				817,515

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.
11.5% (1.5% PIK) Senior Subordinated Note due 04/30/2023		$	1,568,182			10/31/16				$	1,540,882			$	1,584,889
11.5% (1.25% PIK) Senior Subordinated Note due 04/30/2023		$	206,039			10/06/17					202,045				207,754
Common Stock (B)		156,818 shs.				10/31/16					156,818				232,483
											1,899,745				2,025,126
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)		114 uts.				10/04/12					113,636				273,455
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		$	1,403,469			04/22/16					1,395,284				1,431,539
Limited Liability Company Unit (B)		0.40% int.				04/20/16					345,000				489,900
											1,740,284				1,921,439
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		$	1,721,694				*				1,709,460				1,721,693
Limited Partnership Interest		524 uts.				08/01/14					523,950				902,345
* 05/21/13 and 08/01/14.											2,233,410				2,624,038
ASC Holdings, Inc.
A manufacturer of capital equipment used by corrugated box manufacturers.
13% (1% PIK) Senior Subordinated Note due 05/18/2021		$	756,198			11/19/15					745,870				732,955
Limited Liability Company Unit (B)		111,100 uts.				11/18/15					111,100				28,331
											856,970				761,286

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		$	1,515,400			08/17/15				$	1,494,645			$	1,495,653
Preferred Stock (B)		210 shs.				08/17/15					209,390				161,202
Common Stock (B)		210 shs.				08/17/15					210				—
											1,704,245				1,656,855
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 03/21/2021 (D)		$	6,777			07/31/14					6,650				—
Limited Liability Company Unit (B)(F)		45,504 uts.					*				—				—
Limited Liability Company Unit Class C Preferred (B)(F)		78,358 uts.				09/29/17					484,578				—
* 07/31/14 and 10/14/15.											491,228				—
BCC Software, Inc.
A provider of software and data solutions which enhance mail processing to help direct mail marketers realize discounts from the U.S. Postal Service, avoid penalties associated with mailing errors, and improve the accuracy and efficiency of marketing campaigns.
12% (1% PIK) Senior Subordinated Note due 04/11/2023		$	1,495,166			10/11/17					1,466,211				1,502,690
Preferred Stock Series A (B)		23 shs.				10/11/17					232,373				231,063
Common Stock Class A (B)		735 shs.				10/11/17					735				—
											1,699,319				1,733,753
BEI Precision Systems & Space Company, Inc.
A provider of advanced design, manufacturing, and testing for custom optical encoder-based positioning systems, precision accelerometers, and micro scanners.
12% (1% PIK) Senior Subordinated Note due 04/28/2024		$	1,458,756			04/28/17					1,431,622				1,452,376
Limited Liability Company Unit (B)(F)		2,760 uts.				04/28/17					276,000				132,685
											1,707,622				1,585,061

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage					Acquisition Date			Cost				Fair Value
Blue Wave Products, Inc.
A distributor of pool supplies.
10% Senior Secured Term Note due 09/30/2018		$	59,574				10/12/12			$	59,386			$	59,574
13% (1% PIK) Senior Subordinated Note due 09/30/2019		$	334,742				10/12/12				326,523				334,742
Common Stock (B)		51,064 shs.					10/12/12				51,064				367,648
Warrant, exercisable until 2022, to purchase common stock at $.01 per share (B)		20,216 shs.					10/12/12				20,216				145,550
											457,189				907,514
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 (D)		$	1,585,908				06/30/15				1,561,276				—
Common Stock (B)		1,417 shs.					06/30/15				156,800				—
											1,718,076				—
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 06/19/2020		$	791,817				01/19/11				785,799				791,817
14% (2% PIK) Senior Subordinated Note due 06/19/2020		$	209,198				08/03/12				207,830				209,198
Common Stock (B)		375 shs.					01/19/11				37,500				41,877
Warrant, exercisable until 2021, to purchase common stock at $.01 per share (B)		295 shs.					01/19/11				29,250				32,918
											1,060,379				1,075,810
Church Services Holding Company
A provider of diversified residential services to homeowners in the Houston, Dallas, and Austin markets.
Limited Liability Company Unit (B)(F)		1 ut.					03/26/12				189,978				—
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		$	2,053,963				*				2,027,811				2,054,716
Limited Liability Company Unit (B)		1,853 uts.					07/18/16				189,267				167,398
* 10/01/14 and 07/18/16.											2,217,078				2,222,114

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)		147 shs.				12/02/08				$	146,594			$	832,262
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)		230 uts.				03/04/15					147,305				230,752
Connecticut Electric, Inc.
A supplier and distributor of electrical products sold into the retail and wholesale markets.
Limited Liability Company Unit Class A (B)		82,613 uts.				01/12/07					82,613				112,006
Limited Liability Company Unit Class C (B)		59,756 uts.				01/12/07					59,756				87,629
Limited Liability Company Unit Class D (B)		671,525 uts.				05/03/10					—				930,698
Limited Liability Company Unit Class E (B)		1,102 uts.				05/03/10					—				165,309
											142,369				1,295,642
CORA Health Services, Inc.
A provider of outpatient rehabilitation therapy services.
12.75% (1.75% PIK) Senior Subordinated Note due 06/30/2023		$	778,404			06/30/16					765,875				800,373
Preferred Stock Series A (B)		758 shs.				06/30/16					72,033				86,850
Common Stock Class A (B)		3,791 shs.				06/30/16					3,791				15,096
											841,699				902,319
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		$	1,336,228			11/22/13					1,326,368				1,336,228
Common Stock (B)		90 shs.					*				514,284				589,219
* 11/22/13 and 09/16/16.											1,840,652				1,925,447
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		$	1,420,588			10/07/16					1,396,109				1,428,478
Limited Liability Company Unit (B)(F)		304,412 uts.				10/07/16					304,412				350,074
											1,700,521				1,778,552

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		$	1,432,251				05/04/12			$	1,422,981			$	1,412,941
Preferred Stock (B)		25 shs.					05/04/12				252,434				237,754
Common Stock (B)		25 shs.					05/04/12				28,048				—
											1,703,463				1,650,695
Dunn Paper
A provider of specialty paper for niche product applications.
10.32% Second Lien Term Loan due 08/26/2023		$	1,725,000				09/28/16				1,696,610				1,716,375
Eagle Family Foods, Inc.
A producer of low-cost branded and private label canned milk.
10.74% Last Out Term Loan due 12/31/2021		$	1,725,000				12/22/15				1,707,766				1,713,377
10.74% Second Last Out Term Loan due 12/31/2021		$	177,404				09/07/17				175,756				176,209
											1,883,522				1,889,586
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		$	1,324,237				11/21/14				1,307,409				1,324,237
Limited Liability Company Unit (B)(F)		230 uts.					11/19/14				71,875				172,372
											1,379,284				1,496,609
Elite Sportwear 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		$	1,584,678				10/14/16				1,562,555				1,535,098
Limited Liability Company Unit (B)(F)		101 uts.					10/14/16				159,722				71,689
											1,722,277				1,606,787
English Color & Supply LLC
A distributor of aftermarket automotive paint and related products to collision repair shops, auto dealerships and fleet customers through a network of stores in the Southern U.S.
11.5% (0.5% PIK) Senior Subordinated Note due 12/31/2023		$	1,330,625				06/30/17				1,306,130				1,341,531
Limited Liability Company Unit (B)(F)		397,695 uts.					06/30/17				397,695				437,465
											1,703,825				1,778,996

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage					Acquisition Date			Cost				Fair Value
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		$	983,968				04/04/14			$	976,430			$	983,968
14% (2% PIK) Senior Subordinated Note due 10/04/2019		$	259,638				07/01/16				256,629				261,239
Common Stock (B)	0.31% int.						04/04/14				77,533				92,782
											1,310,592				1,337,989
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)	171 uts.						09/27/10				58,345				87,428
Limited Liability Company Unit Common (B)	171 uts.						09/27/10				17,073				308,587
											75,418				396,015
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)	80,559 uts.						04/15/14				—				80,559
Limited Liability Company Unit Class B-1 (B)	65,789 uts.						12/15/10				65,789				402,397
Limited Liability Company Unit Class B-2 (B)	8,248 uts.						12/15/10				8,248				50,449
Limited Liability Company Unit Class B-3 (B)	6,522 uts.						08/30/12				15,000				41,586
Limited Liability Company Unit Class C (B)	1,575 uts.						12/20/10				16,009				65,426
											105,046				640,417
FMH Holdings Corporation
A designer and manufacturer of highly engineered components for the aerospace, defense and space industries.
Common Stock (B)	148 shs.						05/01/15				148,096				380,426
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)	76 uts.						10/05/12				75,920				41,317
Limited Liability Company Unit Common (B)	767 uts.						10/05/12				767				—
											76,687				41,317

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		$	1,244,605				03/27/13			$	1,238,254			$	1,120,144
Common Stock (B)		1,181 shs.					03/27/13				118,110				33,855
											1,356,364				1,153,999
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		$	1,608,768				01/15/16				1,585,106				1,640,944
Common Stock (B)		147 shs.					01/15/16				147,436				303,024
											1,732,542				1,943,968
GlynnDevins Acquisition Corporation
A marketing communications agency that services senior living facilities.
Preferred Stock Series A (B)		342 shs.					06/19/15				70,683				84,307
Common Stock (B)		342 shs.					06/19/15				2,945				53,921
											73,628				138,228
Grakon Parent
The leading designer and manufacturer of highly-engineered and customized LED and incandescent lighting systems for transportation-based markets.
Common Stock (B)		175 shs.					10/31/14				174,831				231,461
GraphPad Software, Inc.
A provider of data analysis, statistics and graphing software solution for scientific research applications, with a focus on the life sciences and academic end-markets.
7.66% Term Loan due 12/21/2022		$	2,465,000				12/19/17				2,415,948				2,415,827
GTI Holding Company
A designer, developer, and marketer of precision specialty hand tools and handheld test instruments.
12% Senior Subordinated Note due 05/22/2023		$	727,865				02/05/14				704,329				727,865
Common Stock (B)		1,046 shs.					*				104,636				129,396
Warrant, exercisable until 2027, to purchase common stock at $.01 per share (B)		397 shs.					02/05/14				36,816				49,111
* 02/05/14 and 11/22/17.											845,781				906,372

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		$	1,725,000				*			$	1,702,044			$	1,728,656
Limited Liability Company Unit Preferred (B)		372 uts.					**				371,644				444,515
Limited Liability Company Unit Common Class A (B)		3,594 uts.				12/19/14					—				40,676
* 12/19/14 and 02/21/17.											2,073,688				2,213,847
* *12/19/14 and 04/29/16.
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		$	1,599,281			07/01/16					1,574,434				1,631,266
Common Stock (B)		150 shs.				07/01/16					149,500				187,523
											1,723,934				1,818,789
Hartland Controls Holding Corporation
A manufacturer and distributor of electronic and electromechanical components.
14% (2% PIK) Senior Subordinated Note due 08/14/2020		$	1,128,673			02/14/14					1,119,113				1,128,673
12% Senior Subordinated Note due 08/14/2020		$	431,250			06/22/15					429,025				435,563
Common Stock (B)		821 shs.				02/14/14					822				307,173
											1,548,960				1,871,409
HHI Group, LLC
A developer, marketer, and distributor of hobby-grade radio control products.
14% (2% PIK) Senior Subordinated Note due 11/26/2020		$	1,650,889			01/17/14					1,637,490				1,650,889
Limited Liability Company Unit (B)(F)		102 uts.				01/17/14					101,563				15,121
											1,739,053				1,666,010
Hollandia Produce LLC
A hydroponic greenhouse producer of branded root vegetables.
14.25% (2.75% PIK) Senior Subordinated Note due 12/11/2020		$	1,409,335				*				1,391,392				1,268,402
* 12/30/15 and 12/23/16.

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)		47 uts.				10/14/11			$	—			$	—
Limited Liability Company Unit Class G (B)(F)		114 uts.				10/14/11				—				—
Limited Liability Company Unit Class H (B)(F)		47 uts.				10/14/11				—				—
Limited Liability Company Unit Class I (B)(F)		47 uts.				10/14/11				—				—
										—				—
Hospitality Mints Holding Company
A manufacturer of individually-wrapped imprinted promotional mints.
12% Senior Subordinated Note due 10/01/2018		$	1,098,837			08/19/08				1,096,983				988,953
Common Stock (B)		251 shs.				08/19/08				251,163				—
Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B)		65 shs.				08/19/08				60,233				—
										1,408,379				988,953
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.
15% (15% PIK) Senior Subordinated Note due 11/10/2020		$	1,169,974			11/10/14				1,157,751				963,286
Common Stock (B)		2,300 shs.				11/10/14				230,000				—
										1,387,751				963,286
Insurance Claims Management, Inc.
A third party administrator providing auto and property claim administration services for insurance companies.
Common Stock (B)		47 shs.				02/27/07				1,424				112,569
Janus Group Holdings LLC
A manufacturer of roll-up doors and hallway systems that are primarily used in self-storage facilities.
Limited Liability Company Unit Class A (B)(F)		283 uts.				12/11/13				—				1,832,892
JMH Investors LLC
A developer and manufacturer of custom formulations for a wide variety of foods.
Limited Liability Company Unit (B)(F)		1,038,805 uts.				12/05/12				232,207				—
Limited Liability Company Unit Class A-1 (B)(F)		159,048 uts.				10/31/16				159,048				233,833
Limited Liability Company Unit Class A-2 (B)(F)		1,032,609 uts.				10/31/16				—				94,794
										391,255				328,627

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date			Cost				Fair Value
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)		40 uts.				06/30/15			$	—			$	—
Common Stock (B)		353 shs.				07/15/08				285,619				—
										285,619				—
Manhattan Beachwear Holding Company
A designer and distributor of women's swimwear.
12.5% Senior Subordinated Note due 04/30/2019 (D)		$	419,971			01/15/10				404,121				—
15% (2.5% PIK) Senior Subordinated Note due 04/30/2019 (D)		$	115,253			10/05/10				114,604				—
Common Stock (B)		35 shs.				10/05/10				35,400				—
Common Stock Class B (B)		118 shs.				01/15/10				117,647				—
Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B)		104 shs.				10/05/10				94,579				—
										766,351				711,659
Master Cutlery LLC
A designer and marketer of a wide assortment of knives and swords.
13% Senior Subordinated Note due 04/17/2020		$	868,102			04/17/15				863,025				—
Limited Liability Company Unit		5 uts.				04/17/15				678,329				-
										1,541,354				651,077
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)		$	454,295			09/22/11				449,013				—
15% PIK Senior Subordinated Note due 04/30/2022 (D)		$	23,839			08/18/15				23,839				—
14% PIK Senior Subordinated Note due 06/30/2019		$	61,979			*				61,979				—
Common Stock Class A (B)		83,080 shs.				**				170,705				—
* 10/21/16, 01/27/17 and 10/13/17.										705,536				824,549
** 08/18/15, 10/20/16 and 01/27/17.

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		$	1,117,744				09/30/14			$	1,103,916			$	1,111,096
Common Stock Class B (B)		219,545 shs.					09/30/14				219,545				106,640
											1,323,461				1,217,736
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		$	1,570,501				12/02/16				1,543,459				1,601,911
Preferred Stock (B)		1,711 shs.					12/02/16				171,116				164,237
Common Stock (B)		242 shs.					12/02/16				242				—
											1,714,817				1,766,148
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 05/02/2020		$	1,336,159				11/02/12				1,327,277				1,336,159
Common Stock (B)		45 shs.					11/02/12				44,643				69,247
											1,371,920				1,405,406
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		$	1,752,596				04/29/16				1,726,879				1,636,754
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		$	284,185				11/30/10				282,488				284,185
Limited Liability Company Unit Class B-1 (B)(F)		75,000 uts.					11/30/10				—				42,982
Limited Liability Company Unit Class B-2 (B)(F)		6,801 uts.					11/30/10				—				3,898
											282,488				331,065

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)		$	810,000			02/02/07				$	809,408			$	32,400
Limited Partnership Interest of Saw Mill PCG Partners LLC (B)		1.46% int.				02/01/07					588,077				—
Limited Liability Company Unit Class D of Saw Mill PCG Partners LLC (B)		9 uts.					*				8,873				—
Limited Liability Company Unit Class D-1 of Saw Mill PCG Partners LLC (B)		121 uts.				09/30/09					121,160				—
Limited Liability Company Unit Class D-2 of Saw Mill PCG Partners LLC (B)		68 uts.				04/29/11					34,547				—
Limited Liability Company Unit Class D-3 of Saw Mill PCG Partners LLC (B)		104 uts.				12/10/14					103,904				72,626
* 12/18/08 and 09/30/09.											1,665,969				105,026
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 05/17/2023		$	1,527,814			06/30/16					1,503,239				1,558,371
Common Stock (B)		207 shs.				05/17/16					207,000				261,289
											1,710,239				1,819,660
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		$	1,449,000			01/29/16					1,428,019				1,477,980
12% (1% PIK) Senior Subordinated Note due 08/17/2022		$	326,705			02/17/17					320,931				332,155
Common Stock Class B (B)		380,545 shs.					*				380,545				536,703
* 01/29/16 and 02/17/17.											2,129,495				2,346,838
Pegasus Transtech Corporation
A provider of end-to-end document, driver and logistics management solutions, which enable its customers (carriers, brokers, and drivers) to operate more efficiently, reduce manual overhead, enhance compliance, and shorten cash conversion cycles.
11.25% Term Loan due 11/16/2022		$	346,855			11/14/17					336,837				336,903
7.67% Term Loan due 11/17/2024		$	2,122,639			11/14/17					1,933,851				1,935,644
											2,270,688				2,272,547

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
Petroplex Inv Holdings LLC
A leading provider of acidizing services to E&P customers in the Permian Basin.
Limited Liability Company		0.40% int.					*			$	175,339			$	14,924
* 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.
13.9% (1% PIK) Senior Subordinated Note due 01/31/2020		$	1,091,117			07/31/14					1,081,465				982,004
Limited Liability Company Unit		148,096 uts.				07/31/14					148,096				2,768
Limited Liability Company Unit Class F		20,621 uts.				09/28/17					14,274				385
											1,243,835				985,157
Power Stop Holdings LLC
A supplier of performance upgrade aftermarket brake products.
Limited Liability Company Unit Preferred (B)(F)		1,149 uts.				05/29/15					114,900				115,713
Limited Liability Company Unit Common (B)(F)		1,149 uts.				05/29/15					—				175,393
											114,900				291,106
PPC Event Services
A special event equipment rental business.
14% (2% PIK) Senior Subordinated Note due 05/20/2020		$	1,190,406			11/20/14					1,178,649				1,190,406
Limited Liability Company Unit (B)		3,450 uts.				11/20/14					172,500				474,814
Limited Liability Company Unit Series A-1 (B)		339 uts.				03/16/16					42,419				54,115
											1,393,568				1,719,335
Randy's Worldwide Automotive
A designer and distributor of automotive aftermarket parts.
Common Stock (B)		118 shs.				05/12/15					118,476				338,094
ReelCraft Industries, Inc.
A designer and manufacturer of heavy-duty reels for diversified industrial, mobile equipment OEM, auto aftermarket, government/military and other end markets.
10.5% (0.5% PIK) Senior Subordinated Note due 02/28/2023		$	1,432,337			11/13/17					1,432,337				1,443,693
Limited Liability Company Unit Class B		293,617 uts.				11/13/17					293,617				293,617
											1,725,954				1,737,310

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
Signature Systems Holding Company
A seller and installer of a variety of modular surfaces, industrial matting and related products used for ground protection.
Common Stock (B)		76 shs.				03/15/13				$	75,509			$	78,358
Warrant, exercisable until 2023, to purchase common stock A at $.01 per share (B)		31 shs.				03/15/13					28,316				32,014
											103,825				110,372
Smart Source Holdings LLC
A short-term computer rental company.
Limited Liability Company Unit (B)		328 uts.					*				261,262				433,858
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)		83 shs.					*				67,467				109,896
* 08/31/07 and 03/06/08.											328,729				543,754
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)		$	738,694			10/18/13					726,147				—
Common Stock (B)		841 shs.				10/18/13					84,100				—
											810,247				—
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		$	1,725,000			05/23/16					1,698,220				1,742,250
SR Smith LLC
A manufacturer of mine and tunneling ventilation products in the United States.
11% Senior Subordinated Note due 03/27/2022		$	867,652			03/27/17					858,102				867,652
Limited Liability Company Unit Series A (B)(F)		14 uts.				03/27/17					846,631				1,045,332
											1,704,733				1,912,984
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.
Preferred Stock Series A (B)		158,967 shs.				12/13/13					158,967				259,595
Preferred Stock Series A-2 (B)		26,543 shs.				09/10/15					29,994				43,345
											188,961				302,940

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
Strategic Insight, Inc.
A provider of largely proprietary data, market research, and business intelligence to the global asset management industry.
10.94% Second Lien Term Loan due 12/21/2024		$	1,725,000			12/28/17				$	1,686,233			$	1,686,148
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 01/31/2019 (D)		$	1,428,470				*				1,358,229				999,929
Common Stock (B)		38 shs.				12/14/10					38,168				—
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)		37 shs.				12/14/10					37,249				—
* 12/14/10, 08/17/12 and 03/31/16.											1,433,646				999,929
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		$	1,227,802			07/31/15					1,212,275				1,074,326
Common Stock (B)		68 shs.					*				104,986				11,437
*07/31/15 and 11/08/17											1,317,261				1,085,763
Team Drive-Away Holdings LLC
An asset-light provider of over the road driveaway services for class 8 trucks and specialized equipment.
Limited Liability Company Unit (B)		95,800 uts.				10/15/15					95,800				152,418
Therma-Stor Holdings LLC
A designer and manufacturer of dehumidifiers and water damage restoration equipment for residential and commercial applications.
10.5% (0.5% PIK) Senior Subordinated Note due 11/30/2023		$	1,365,625			11/30/17					1,365,625				1,378,809
Limited Liability Company Unit		359,375 uts.				11/30/17					359,375				359,375
											1,725,000				1,738,184
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		$	73,670			12/05/13					226,187				73,670
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)		28,079 shs.				12/05/13					—				21,059
											226,187				94,729

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)		152,696 shs.					*			$	166,248			$	820,986
* 07/05/13 and 02/13/17.
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		$	1,160,638			01/23/15					1,148,574				1,053,133
Velocity Technology Solutions, Inc
A provider of outsourced hosting services for enterprise resource planning software applications and information technology infrastructure to mid and large-sized enterprises.
7.52% Lien Term Loan due 12/07/2023		$	2,100,000			12/07/17					2,079,202				2,080,066
Veritext Corporation
A provider of stenographic staffing and other services used during the legal deposition process.
10.69% Second Lien Term Loan due 01/29/2023		$	2,012,500				*				1,982,563				1,987,015
* 01/21/16 and 02/23/17.
VP Holding Company
A provider of school transportation services for special-needs and homeless children in Massachusetts.
Common Stock (B)		3,632 shs.				03/31/14					363,158				660,563
Wellborn Forest Holding Company
A manufacturer of semi-custom kitchen and bath cabinetry.
8% Senior Subordinated Note due 09/30/2019 (D)		$	1,778,423			11/30/06					1,006,245				1,778,423
Common Stock (B)		101 shs.				11/30/06					101,250				—
Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B)		51 shs.				11/30/06					45,790				—
											1,153,285				1,778,423

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage					Acquisition Date			Cost				Fair Value
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		$	379,255				08/03/15			$	374,815			$	383,047
Limited Liability Company Unit (B)(F)		370,241 uts.					08/03/15				370,241				577,787
											745,056				960,834
Whitebridge Pet Brands Holdings, LLC
A portfolio of natural treats and foods for dogs and cats.
11.5% (0.5% PIK) Senior Subordinated Note due 08/18/2021		$	1,486,256				04/18/17				1,467,336				1,498,526
Limited Liability Company Unit Class A (B)(F)		123 uts.					04/18/17				148,096				133,797
Limited Liability Company Unit Class B (B)(F)		123 uts.					04/18/17				—				70,614
											1,615,432				1,702,937
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		$	1,614,441				01/22/16				1,591,743				1,646,730
Common Stock (B)		157 shs.					01/22/16				156,818				232,137
											1,748,561				1,878,867
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		$	991,074				11/03/11				988,000				991,074
Common Stock (B)		1,500 shs.					11/03/11				150,000				118,001
											1,138,000				1,109,075
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 (D)		$	1,572,322				03/04/15				1,549,582				1,415,518
Common Stock (B)		1,835 shs.					03/04/15				183,500				15,445
											1,733,082				1,430,963
Total Private Placement Investments (E)										$	104,210,707			$	107,418,558

Corporate Restricted Securities: (A) (Continued)		Interest Rate			Maturity Date		Principal Amount				Cost				Market Value
Rule 144A Securities - 10.71%:
Bonds - 10.71%
Alliance Residential Company			7.500	%	05/01/25		$	500,000			$	520,656			$	531,250
Altice Financing S.A.			7.500		05/15/26			400,000				400,000				426,000
Amsted Industries			5.375		09/15/24			240,000				240,000				249,600
Avantor Inc.			6.000		10/01/24			406,000				406,000				404,478
Beacon Roofing Supply, Inc.			4.875		11/01/25			406,000				406,000				407,523
Boise Cascade Company			5.625		09/01/24			130,000				130,000				137,150
CITGO Petroleum Corporation			6.250		08/15/22			425,000				425,000				428,188
CVR Partners, LP.			9.250		06/15/23			500,000				489,610				538,125
Dell Inc.			4.420		06/15/21			600,000				621,132				625,210
Digicel Group Limited			6.000		04/15/21			500,000				467,514				492,130
First Data Corporation			5.000		01/15/24			406,000				406,000				417,673
First Quantum Minerals Ltd.			7.500		04/01/25			500,000				484,948				542,500
Hertz Corporation			7.625		06/01/22			500,000				500,000				523,750
Hilcorp Energy Company			5.000		12/01/24			335,000				335,000				331,650
IAMGOLD Corporation			7.000		04/15/25			500,000				500,000				516,250
J.B. Poindexter Co., Inc.			9.000		04/01/22			401,000				401,000				416,038
Jupiter Resources Inc.			8.500		10/01/22			500,000				471,257				310,000
LBC Tank Terminals Holding Netherlands B.V.			6.875		05/15/23			663,000				676,570				690,349
Moog Inc.			5.250		12/01/22			500,000				502,787				517,500
New Gold Inc.			6.250		11/15/22			500,000				502,196				516,250
OPE KAG Finance Sub			7.875		07/31/23			500,000				518,332				517,500
Penske Corporation			4.875		07/11/22			500,000				498,804				539,784
Prime Security Services Borrower			9.250		05/15/23			750,000				776,135				832,500
Sabre GLBL, Inc.			5.250		11/15/23			122,000				122,000				124,781
Sinclair Broadcast Group, Inc.			5.875		03/15/26			204,000				204,000				212,160
Sinclair Television Group, Inc.			5.125		02/15/27			500,000				500,000				495,625
Suncoke Energy			7.500		06/15/25			500,000				492,684				522,500
Tallgrass Operations LLC			5.500		09/15/24			304,000				304,000				311,980
Teine Energy Ltd.			6.875		09/30/22			500,000				506,250				516,250
Topaz Marine S.A.			9.125		07/26/22			500,000				500,000				516,564
Unitymedia KabelBW GmbH			6.125		01/15/25			500,000				500,000				527,500
Univision Communications, Inc.			5.125		05/15/23			160,000				160,000				159,600
UPCB Finance IV Limited			5.375		01/15/25			208,000				208,000				209,434
Valeant Pharmaceuticals International			7.000		03/15/24			173,000				173,000				185,110

Corporate Restricted Securities: (A) (Continued)		Interest Rate			Maturity Date		Principal Amount				Cost				Market Value
Virgin Media Secured Finance PLC			5.250	%	01/15/26		$	500,000			$	502,146			$	505,000
VRX Escrow Corp.			6.125		04/15/25			182,000				182,000				166,530
Warrior Met Coal, Inc.			8.000		11/01/24			209,000				209,000				215,793
Total Bonds												15,242,021				15,580,225
Common Stock - 0.00%
TherOX, Inc. (B)								2				—				—
Touchstone Health Partnership (B)								292				—				—
Total Common Stock												—				—
Total Rule 144A Securities												15,242,021				15,580,225

Corporate Public Securities - 20.80%: (A)		Interest Rate			Maturity Date		Principal Amount				Cost				Market Value
Bank Loans - 1.52%
Big River Steel LLC.			6.693	%	08/23/23		$	119,068			$	117,945			$	119,961
Cunningham Lindsey U.S., Inc.			5.443		12/10/19			124,631				118,975				124,133
DigiCert, Inc.			6.130		10/31/24			205,369				204,365				207,850
Focus Financial Partners, LLC.			9.193		05/22/25			400,000				409,000				403,500
Gulf Finance, LLC			6.950		08/25/23			260,382				258,308				233,151
Higginbotham Insurance Agency, Inc.			7.250		05/10/22			198,238				196,256				196,256
Murry Energy Corporation			8.943		04/16/20			455,115				417,466				399,363
Seadrill Partners Finco, LLC			4.693		02/21/21			489,796				297,251				394,286
Summit Midstream Holdings, LLC			7.569		05/13/22			135,548				134,393				137,693
Total Bank Loans												2,153,959				2,216,193
Bonds - 19.28%
Air Lease Corp.			3.000		09/15/23			600,000				594,090				595,352
Alcoa, Inc.			6.150		08/15/20			600,000				611,561				645,060
AMC Entertainment Holdings Inc.			6.125		05/15/27			500,000				486,618				496,250
Anchorage Capital Group, L.L.C.			8.609		01/15/29			500,000				517,188				508,829
Anglogold Holdings PLC			5.375		04/15/20			600,000				601,858				626,857
Anixter, Inc.			5.125		10/01/21			165,000				165,000				173,663
Antero Resources Corporation			5.375		11/01/21			395,000				395,000				404,875
A. Schulman Inc.			6.875		06/01/23			500,000				505,282				520,000
Bank of America Corporation			4.000		04/01/24			500,000				498,743				528,563
Beazer Homes USA, Inc.			8.750		03/15/22			160,000				160,000				176,384
Brunswick Corporation			7.125		08/01/27			500,000				503,734				598,549
Bunge Limited Finance Corp.			3.250		08/15/26			600,000				601,942				573,401
Community Health Sysyems Inc.			5.125		08/01/21			480,000				473,400				432,000
Clearwater Paper Corporation			4.500		02/01/23			500,000				497,128				494,375
Crown Castle International Corp			5.250		01/15/23			600,000				660,872				656,967
CubeSmart, L.P.			4.000		11/15/25			500,000				506,216				513,848
CVR Refining LLC			6.500		11/01/22			350,000				342,565				360,500
Discovery Communications			4.900		03/11/26			600,000				648,591				640,083
Dish DBS Corporation			7.750		07/01/26			500,000				542,086				525,625
Duke Realty Limited Partnership			3.875		10/15/22			500,000				499,204				520,214
EnPro Industries Inc.			5.875		09/15/22			120,000				121,050				124,950
EP Energy Corporation			9.375		05/01/20			406,000				238,721				343,070
Expedia Inc.			4.500		08/15/24			600,000				624,276				628,351
Ferrellgas Partners, L.P.			6.750		01/15/22			265,000				267,472				245,125

Corporate Public Securities: (A) (Continued)		Interest Rate			Maturity Date		Principal Amount				Cost				Market Value
Ferrellgas Partners, L.P.			8.625	%	06/15/20		$	650,000			$	650,378			$	554,125
Ford Motor Credit Co. LLC			4.375		08/06/23			600,000				641,285				631,802
General Motors Financial Co. Inc.			4.000		01/15/25			500,000				507,704				513,735
Genesis Energy, L.P.			5.625		06/15/24			500,000				469,987				487,500
GEO Group, Inc. (The)			5.875		01/15/22			500,000				479,341				515,000
HealthSouth Corporation			5.125		03/15/23			421,000				413,805				430,472
Hospital Corporation of America			5.375		02/01/25			100,000				101,411				103,500
Hospital Corporation of America			5.250		06/15/26			174,000				174,000				184,440
Hewlett Packard Enterprise Company			4.900		10/15/25			500,000				498,700				527,869
Hughes Satellite Systems Corporation			6.625		08/01/26			500,000				496,830				523,750
Icahn Enterprises L.P.			6.000		08/01/20			600,000				605,225				617,055
Jabil Circuit, Inc.			4.700		09/15/22			500,000				499,995				524,200
Laboratory Corporation of America Holdings			3.600		02/01/25			500,000				499,411				507,867
Lamar Media Corp.			5.375		01/15/24			160,000				160,000				167,200
Laredo Petroleum, Inc.			5.625		01/15/22			500,000				477,970				505,000
Lazard Group LLC			4.250		11/14/20			500,000				499,266				520,789
LyondellBasell Industries N.V.			5.750		04/15/24			500,000				582,089				569,843
MasTec, Inc.			4.875		03/15/23			500,000				493,682				510,000
MPLX LP			4.875		12/01/24			500,000				500,000				538,950
NRG Energy, Inc.			7.250		05/15/26			500,000				502,925				544,370
Oasis Petroleum Inc.			6.875		03/15/22			500,000				477,304				513,125
Park-Ohio Industries Inc.			6.625		04/15/27			169,000				169,000				182,098
PBF Holding Company LLC			6.997		11/15/23			33,000				33,000				34,320
Perry Ellis International, Inc.			7.875		04/01/19			125,000				124,688				125,000
Pitney Bowes Inc.			3.375		10/01/21			500,000				499,694				465,000
Reinsurance Group of America			3.950		09/15/26			500,000				502,880				511,006
SM Energy Company			6.750		09/15/26			750,000				744,197				772,500
Sprint Corporation			7.125		06/15/24			155,000				155,000				157,713
Steelcase, Inc.			6.375		02/15/21			500,000				503,277				547,198
Suburban Propane Partners, L.P.			5.750		03/01/25			500,000				500,000				493,750
Time Warner Cable, Inc.			5.000		02/01/20			500,000				497,407				521,804
Trinity Acquisition Plc			4.400		03/15/26			500,000				515,196				528,795
Tyson Foods, Inc.			4.500		06/15/22			500,000				508,359				534,057
Western Digital Corporation			10.500		04/01/24			253,000				253,000				293,164
William Lyon Homes			7.000		08/15/22			500,000				500,000				515,000
WPX Energy, Inc.			5.250		09/15/24			425,000				425,000				423,534
Xlit Ltd			4.450		03/31/25			600,000				612,645				613,682
Total Bonds												27,337,248				28,042,104
Total Corporate Public Securities											$	29,491,207			$	30,258,297

Short-Term Security:		Interest Rate/Yield^			Maturity Date		Principal Amount				Cost				Market Value
Commercial Paper - 4.15%
Amphenol Corporation			1.900	%	01/08/18		$	1,000,000			$	999,631			$	999,631
Avangird, Inc.			1.960		01/03/18			1,000,000				999,891				999,891
Cox Enterprise, Inc.			1.870		01/02/18			1,000,000				999,948				999,948
Hewlett Packard Enterprise Company			1.800		01/08/18			1,000,000				999,650				999,650
Time Warner Inc.			1.950		01/04/18			1,000,000				999,837				999,837
WestRock Company			1.950		01/26/18			1,046,000				1,044,584				1,044,584
Total Short-Term Security											$	6,043,541			$	6,043,541
Total Investments			109.50	%							$	154,987,476			$	159,300,621
Other Assets			4.88													7,094,142
Liabilities			(14.38	)												(20,914,698	)
Total Net Assets			100.00	%											$	145,480,065

	Fair Value	Valuation Technique	Unobservable Inputs	Range	Weighted Average
Bank Loans	$2,239,836	Broker Quote	Single Broker	99.5% to 100.8%	99.8%
	$14,021,617	Discounted Cash Flows	Discount Rate	6.4% to 12.4%	8.3%
Corporate Bonds	$60,037,379	Discounted Cash Flows	Discount Rate	7.5% to 21.4%	11.9%
	$8,145,007	Market Approach	Valuation Multiple	4.1x to 8.3x	6.9x
			EBITDA	$0.0 million to $14.9 million	$6.2 million
Equity Securities*	$22,845,188	Market Approach	Valuation Multiple	4.1x to 14.7x	8.7x
			EBITDA	$0.0 million to $223.1 million	$31.7 million

Assets:		Total				Level 1				Level 2				Level 3
Restricted Securities
Corporate Bonds		$	83,762,611			$	—			$	15,580,225			$	68,182,386
Bank Loans			15,737,992				—				—				15,737,992
Common Stock - U.S.			6,911,240				—				—				6,911,240
Preferred Stock			2,525,813				—				—				2,525,813
Partnerships and LLCs			14,061,127				—				—				14,061,127
Public Securities
Bank Loans			2,216,193				—				1,692,732				523,461
Corporate Bonds			28,042,104				—				28,042,104				—
Common Stock - U.S.			—				—				—				—
Preferred Stock			—				—				—				—
Short-term Securities			6,043,541				—				6,043,541				—
Total		$	159,300,621			$	—			$	51,358,602			$	107,942,019

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* (60)   Barings Participation Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Trustee, Chairman /Nominee	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	2	Chairman and Trustee (since 2009), President (2005-2009), Vice President (1993-2005), Barings Corporate 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); Member of the Board of Managers (since 2008), Jefferies Finance LLC (finance company); Chairman and Chief Executive Officer (since 2009), Member of the Board of Managers (since 2007), MMC Equipment Finance LLC; Member of the Board of Managers (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.

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* (73)   Barings Participation 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.	106	Trustee (since 2003), President (1993-2003), Barings Corporate 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 Funds (an open-end investment company advised by MassMutual); Trustee (since 2012), MML Series Investment Funds 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 (2013-2016), 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).

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 (60)   Barings Participation Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Trustee	Term expires 2020; Trustee since 2005	Private Investor; and Managing Director (1994-2005), Morgan Stanley.	2	Trustee (since 2005), Barings Corporate Investors; Independent Director (2006-2014), Invicta Holdings LLC and its subsidiaries (a derivative trading company owned indirectly by MassMutual).
Barbara M. Ginader (61)   Barings Participation Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Trustee	Term expires 2020; Trustee since 2013	Retired (since 2017), Managing Director and General Partner (1993-2017), Boston Ventures Management (private equity firm).	2	Trustee (since 2013), Barings Corporate Investors; Managing Director (1993-2016), Boston Ventures V L.P. (private equity fund); Managing Director (since 1993), Boston Ventures VI L.P. (private equity fund); Member of the Board Overseers (since 2013), MSPCA-Angell; Member of the Grants Committee (since 2013), IECA Foundation; and President of the Board (2006-2012), Codman Academy Public Charter School.
Edward P. Grace III (67)   Barings Participation Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Trustee /Nominee	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 (2011-2017), Angelo Gordon & Co. (Investment adviser).	2	Trustee (since 2012), Barings Corporate Investors; Director (2010-2017), 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).

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
Susan B. Sweeney (65)   Barings Participation 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.	106	Trustee (since 2012), Barings Corporate Investors; Trustee (since 2009), MassMutual Select Funds (an open-ended investment company advised by MassMutual); Trustee (since 2009), MML Series Investment Funds (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 Funds II (an open-ended investment company advised by MassMutual).
Maleyne M. Syracuse (61)   Barings Participation Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Trustee	Term expires 2020; Trustee since 2007	Private Investor (since 2007); Managing Director (2000-2007), 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 Corporate Investors.

Name (Age), Address	Position With The Trust	Office Term / Length of Time Served	Principal Occupations During Past 5 Years
Robert M. Shettle (50)   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 Corporate 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 (53)   Barings Participation 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 Corporate 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 (55)   Barings Participation 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 Corporate 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 (44)   Barings Participation Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Chief Compliance Officer	Since 2006	Chief Compliance Officer (since 2006), Barings Corporate 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.
Sean Feeley (50)   Barings Participation Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Vice President	Since 2011	Vice President (since 2011), Barings Corporate 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.
Kristin Goodchild (32)   Barings Participation Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Associate Secretary	Since 2015	Associate Secretary (since 2015), Barings Corporate Investors; Assistant Secretary (since 2015), Barings Funds Trust (open-end investment company advised by Barings); Assistant Secretary (since 2015), Barings Global Short Duration High Yield Fund (closed-end investment company advised by Barings) Counsel (since 2016), Senior Paralegal (2014-2016, Paralegal (2010-2013), Legal Analyst (2008-2009), Barings.

Name (Age), Address	Position With The Trust	Office Term / Length of Time Served	Principal Occupations During Past 5 Years
Christopher Hanscom (35)   Barings Participation Investors 1500 Main Street P.O. Box 15189 Springfield, MA 01115-5189	Treasurer	Since 2017	Treasurer (since 2017), Barings Corporate Investors; Associate Director (since 2015), Analyst (2005-20 15), Barings.

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 LLC	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	Christopher D. Hanscom Treasurer
Melissa M. LaGrant Chief Compliance Officer