Barings Participation Investors Holds April 2017 Board Meeting

UPDATE — Barings Participation Investors Holds April 2017 Board Meeting

CHARLOTTE, NC, April 24, 2017 (GLOBE NEWSWIRE) — The Board of Trustees of Barings Participation Investors (the Trust) met on April 21, 2017. The Trust also conducted its 2017 Annual Meeting of Shareholders.

The Trusts Trustees determined that the Trusts March 31, 2017 net asset value (NAV) is $141,119,693.36 or $13.56 per share based on 10,404,497 shares outstanding. The Trusts March 31, 2016 NAV was $138,443,220 or $13.39 per share based on 10,342,412 shares outstanding. The Trust reported a NAV of $137,568,919 or $13.35 per share as of December 31, 2016, based on 10,301,085 shares outstanding. All figures other than December 31, 2016 figures are unaudited.

The Trusts net investment income for the quarter ended March 31, 2017 was $2,977,417 or $0.29 per share, of which approximately $405,470 or $0.04 per share represented income due to nonrecurring items, compared to $2,253,036 or $0.22 per share for the quarter ended March 31, 2016. For the previous year ended December 31, 2016, net investment income was $10,671,491 or $1.04 per share.

The Trust declared a quarterly dividend of 27 cents per share payable on May 12, 2017 to shareholders of record on May 4, 2017. The Trust had previously paid a 27 cent-per-share dividend for the preceding quarter. The Board of Trustees also approved the continuance of the Trusts current Investment Advisory and Administrative Services Contract with Barings LLC.

During the quarter ended March 31, 2017 net capital gains of $333,072 or $0.03 per share were realized by the Trust, compared to net capital losses of $369,989 or $0.04 per share for the quarter ended March 31, 2016. For the previous quarter ended December 31, 2016, net capital losses were $1,148,672 or $0.11 per share.

At the Annual Meeting, shareholders elected Michael H. Brown, Barbara M. Ginader and Maleyne M. Syracuse as Trustees for three-year terms.

The market price of Barings Participation Investors as of March 31, 2017 was $14.20, which equates to a 3.98% discount to the March 31, 2017 NAV per share. The Trusts average quarter-end premium for the 3, 5 and 10-year periods was 0.93%, 6.89% and 7.06%, respectively.

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

Per share amounts are rounded to the nearest cent.

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

About Barings LLC

Barings is a $280+ billion* global asset management firm dedicated to meeting the evolving investment and capital needs of our clients. We build lasting partnerships that leverage our distinctive expertise across traditional and alternative asset classes to deliver innovative solutions and exceptional service. A member of the MassMutual Financial Group, Barings maintains a strong global presence with over 1,700 employees and 600 investment professionals across 41 offices in 17 countries. Learn more at www.barings.com.

*As of March 31, 2017

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Brian Whelan, Head of Corporate Communications, 980.417.7700, brian.whelan@barings.com

Source: Barings

Why Is Reinsurance Group (RGA) Up 3.7% Since the Last Earnings Report?

A month has gone by since the last earnings report for Reinsurance Group of America, Incorporated (RGA – Free Report) . Shares have added about 3.7% in that time frame, underperforming the market.

Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, lets take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Reinsurance Group Q4 Earnings Beat, Decrease Y/Y

Reinsurance Group of America, Incorporated reported fourth-quarter 2016 operating income of $2.63 per share. Though the bottom line outperformed the Zacks Consensus Estimate of $2.50 by 5.2%, it deteriorated 7.4% from the year-ago quarter.

The company’s Traditional business in the US, Asia, the EMEA and Canada was strong in the quarter. The fourth-quarter results displayed the company’s earnings diversification in terms of both geography and product.

Reinsurance Groups operating revenues of $3.1 billion increased 6.5% year over year.

Net premiums of $2.5 billion rose 7.1% year over year on organic growth and moderate contributions from in-force transactions.

Investment income grew 6.5% from the prior-year quarter to $497.2 million. The average investment yield was down by 27 basis points to 4.69%.

Total benefits and expenses of Reinsurance Group increased 5.8% year over year to $2.8 billion. Higher claims and other policy benefits, policy acquisition costs and other insurance expenses, interest expenses, other operating expenses as well as collateral finance and securitization expenses resulted in the overall increase in costs.

2016 Highlights

Operating income of $9.73 per share improved 15.4% year over year.

Reinsurance Groups total revenue of $10.9 billion increased about 8% year over year.

Quarterly Segment Update

Reinsurance Group changed the name of its Non-Traditional segments to Financial Solutions in the fourth quarter.

US and Latin America: Total pre-tax income soared 33.7% to $190.5 million in the quarter.

The Traditional segment reported pre-tax operating income of $129.3 million, up 63.7% year over year. The upside was backed by higher variable investment income and moderately favorable claims experience in the Individual Mortality business. Net premiums grew 4% from the year-ago quarter to $1.4 billion.

The Financial Solutions segment’s pre-tax operating income dipped 1.9% to $46.7 million. Nonetheless, the segment’s operating income was supported by favorable investment spreads. Financial Reinsurance business reported pre-tax operating income of $14.4 million compared with $15.9 million in the prior-year quarter, in line with expectations.

Canada: Total pre-tax operating income decreased approximately 20% to $38.8 million.

The Traditional segment’s pre-tax operating income declined 22.8% to $34.8 million. Net premiums increased 20% to $241.9 million driven by robust growth in individual mortality and a one-time amendment in 2016 on a creditor treaty.

The Financial Solutions segment’s pre-tax income jumped 20.6% year over year to $4.1 million on the back of favorable longevity experience.

Asia Pacific: Total pre-tax operating income plunged 70% to $12.3 million during the quarter.

The Traditional segment reported a pre-tax operating income of $18.5 million, down 48.2% year over year. Premiums were up 15.3% to $448.3 million on strong growth in Asia.

The Financial Solutions segment’s pre-tax operating losses of $6.1 million compared unfavorably with pre-tax operating income of $5.4 million of the year-ago quarter.

Europe, Middle East and Africa (EMEA): This region reported pre-tax operating income of $52.6 million, up 66.1% year over year.

The Traditional segment reported pre-tax operating income of $15.8 million, up 22.5% year over year. Higher premiums and a favorable adjustment associated with improved client reporting primarily supported the upside. However, the improvement was partially offset by moderately unfavorable mortality and morbidity experience in the UK Premiums inched up 0.5% to $301.3 million.

The Financial Solutions segment’s pre-tax operating income soared 95.2% to $36.7 million on the back of sustained favorable experience in both asset-intensive and longevity businesses. New businesses also contributed to the growth.

Corporate and Other: Pre-tax operating loss of $26.3 million was substantially wider than the year-ago loss of $16.7 million.

Financial Update

As of Dec 31, 2016, Reinsurance Group had assets worth $53.1 billion, up 5.4% from year-end 2015.

As of Dec 31, 2016, Reinsurance Group’s book value per share, excluding Accumulated Other Comprehensive Income (AOCI), grew 11.2% year over year to $92.59.

Dividend and Share Repurchase Update

The board of directors announced a quarterly dividend of 41 cents, which is payable on Mar 2, to shareholders on record as of Feb 9, 2017.

The board of directors authorized a new share repurchase program of up to $400 million of the company’s outstanding common stock.

Guidance

For the intermediate term, the life insurer targets growth in operating income per share in the range of 5% to 8% and operating return on equity in the range of 10% to 12%.

Given that the investment environment is unlikely to change much from the current levels, the company anticipates deploying $300-$400 million of excess capital, on an average, annually.

How Have Estimates Been Moving Since Then?

Following the release, investors have witnessed an upward trend in fresh estimates. There have been two upward revisions for the current quarter.

BRIEF-Capitala Finance Corp reports Q4 net investment income of $0.43 per share

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Chris Nolt: Taxation on the Sale of Farm and Ranch Property | TSLN …

Taxes on the sale of farm and ranch property can erode the wealth a family has worked a lifetime for by 25% or more. If you are considering selling land, livestock, crops, machinery or equipment, consult with your tax advisors to learn about the potential tax consequences of the sale and what you can do to preserve your wealth.

Various tax rates and tax treatment apply to the different types of assets involved with the sale of a farm or ranch. It is important that you and seek direction from your tax advisors when purchase price allocation is being negotiated. How you allocate the sales price to the assets of your ranch will determine the tax you ultimately may pay.

Below is a list of asset categories and the type of tax owed on each category:

Inventory and Supplies: Crops, fertilizer, etc.

o Taxed at ordinary income rates.

Livestock

o Raised livestock – breeding stock

o Cattle and horses – held greater than two years – taxed at capital gain rates.

o Other livestock – held greater than one year – taxed at capital gain rates.

o There is no cost basis in raised livestock.

o Purchased livestock – Breeding stock

o Cattle and horses – held greater than 2 years – taxed at capital gain rates.

o Other livestock – held greater than 1 year – taxed at capital gain rates.

o Cost basis is purchase price. Depreciation recapture rules apply.

o Purchased or raised livestock that is held for sale

o Taxed at ordinary income rates.

Equipment

o Irrigation systems, swathers, bailers, tractors, etc. IRC Section 1245 assets. Recapture of depreciation applies.

Ranch House

o IRC Section 121 Principal Residence Exclusion allows an individual to exclude up to $250,000 of taxable gain from the sale of a principal residence and a married couple filing a joint return to exclude up to $500,000 of gain. Homes owned in a corporation are not eligible for the Principal Residence Exclusion.

Buildings

o Single-Use Property – IRC Section 1245 depreciation recapture applies.

o IRC Section 1250 Property – potential depreciation recapture may apply.

Land

o Gain taxed at capital gain rates.

Below is a summary of the four ways investors may be taxed on the sale of a farm or ranch:

1. Federal Ordinary Income Tax: Taxpayers will be taxed at rates up to 39.6% depending on taxable income.

2. Depreciation Recapture: Taxpayers will be taxed at a rate of 25% on all depreciation recapture.

3. Federal Capital Gain Taxes: Investors owe Federal capital gain taxes on their economic gain depending upon their taxable income. Since a new higher capital gain tax rate of 20% has been added to the tax code, investors exceeding the $400,000 taxable income threshold for single filers and married couples filing jointly with over $450,000 in taxable income will be subject to the new higher tax rate. The previous Federal capital gain tax rate of 15% remains for investors below these threshold income amounts.

4. New Medicare Surtax Pursuant to IRC Section 1411: The Health Care and Education Reconciliation Act of 2010 added a new 3.8% Medicare Surtax on net investment income. This 3.8% Medicare surtax applies to taxpayers with net investment income who exceed threshold income amounts of $200,000 for single filers and $250,000 for married couples filing jointly. Pursuant to IRC Section 1411, net investment income includes interest, dividends, capital gains, retirement income and income from partnerships (as well as other forms of unearned income).

5. State Taxes: Taxpayers must also take into account the applicable state tax, if any, to determine their total tax owed.

Upcoming issues of The Fence Post will feature articles on how to save taxes on the sale of farm and ranch property.

Chris Nolt is the author of the book; Financial Strategies for Selling a Farm or Ranch and the owner of Solid Rock Wealth Management, Inc. and Solid Rock Realty Advisors, LLC, sister companies dedicated to working with families around the country who are selling a farm or ranch and transitioning into retirement. To order a copy of Chriss book, call 800-517-1031 or visit: http://www.solidrockproperty.com and http://www.solidrockwealth.com.

BRIEF-GSV Capital Corp – Qtrly net investment income $0.17per share

Reuters is the news and media division of Thomson Reuters. Thomson Reuters is the worlds largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Learn more about Thomson Reuters products:

Repealing Affordable Care Act Taxes on Upper-Income Workers and Savers

The House Republican proposal to repeal and replace the Affordable Care Act would eliminate several taxes imposed under the Act. Among these is the Net Investment Income Tax that imposes a 3.8 percent surtax on income from investments. It applies to investment income of married couples with more than $250,000 of adjusted gross income, and single filers with more than $200,000 of adjusted gross income. This tax, in effect, extended the Medicare portion of the payroll tax to investment earnings for the first time. Critics complain that the repeal would benefit the rich, and cost the Treasury substantial revenue. They are looking only at the static “distribution tables” and ignoring the widespread economic benefits of repeal.

The Net Investment Income Tax is a bad tax, and its repeal will benefit everyone. The high tax rate on individual saving retards capital formation, which depresses productivity and wages. We estimate a “static” revenue loss from repeal at $628 billion over ten years, assuming no gain in GDP from the lower tax rate. On a static basis, that gain would fall only on individuals in the top 20% of the income distribution. But factoring in the “dynamic” growth effects of the repeal tells a different story. Repeal would raise employment by 133,000. The economy would be 0.7 percent larger, and wages about 0.6 percent larger. The income gains would be spread over all income levels. After-tax incomes in the bottom 80% of the income distribution would be about 0.65% higher than with the tax in place. They would share in the gains. The revenue cost would drop to about $444 billion, about 30% less than in the static estimate.

The repeal plan would also eliminate the 0.9 percent Medicare Hospital Insurance surtax on incomes above $250,000, which boosts the 2.9 percent HI tax to 3.8 percent. That tax also falls mainly on the rich. However, it discourages hours worked by high-income people, reduces the output of their businesses, and acts in part as a drag on earnings of their coworkers and employees. Its repeal, too, would benefit a wider group of income earners than is shown in the static distribution tables.

How to Report Social Security Income to the IRS the Right Way

First, start by taking your Social Security benefits and then dividing that amount by two. Add in taxable income from other sources, including work income, investment income, taxable pension and retirement payments. If that total is less than $25,000 for single filers or $32,000 for joint filers, then you wont have to include any of your Social Security benefits as income.