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IR - Half Year Report for the year ended 31 March 2025

Company: BARINGS EMERGING EMEA OPPORTUNITIES PLC Date: 2025-06-06 Language: English Register to download
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# [Barings Emerging EMEA Opportunities PLC](https://www.barings.com/en-gb/investment-trust/the-trust/the-trust/barings-emerging-emea-opportunities-plc)

Half Year Report 31 March 2025

# Finding quality companies from Emerging Europe, the Middle East and Africa.

Barings Emerging EMEA Opportunities PLC ("BEMO") offers a strategy tailored for investors seeking to diversify the growth and income potential of emerging markets.

# **Why invest in BEMO?**

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# UNDISCOVERED VALUE

Emerging EMEA is under researched compared to other emerging markets – providing an extensive opportunity to identify quality companies with unrecognised growth potential at attractive valuations.

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# LONG-TERM POTENTIAL

Many of these economies are only just embarking on the technological and consumer shifts, such as e-commerce, that have already generated sustained growth in developed markets.

# ACTIVE MANAGEMENT

This actively-managed portfolio gives concentrated exposure to 30-60 of the very best ideas to be found across the Emerging EMEA region – with a strong focus on environmental, social and governance factors.

BEMO is a public limited company with shares quoted on the London Stock Exchange. You can invest in BEMO by purchasing shares through an online investment platform operated by third-party providers, or through a financial adviser or a stockbroker. As an investor you become a shareholder in the Company.

Becoming a shareholder of BEMO provides access to the skill and expertise of the established investment team's active management of the stock market investments, whilst providing an attractive level of income.

For more information please visit our website:

# [www.bemoplc.com](http://www.bemoplc.com)

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# Contents

### STRATEGIC REPORT

| Financial Highlights             | 2  |
|----------------------------------|----|
| Chairman's Statement             | 3  |
| Business Model and Strategy      | 6  |
| Report of the Investment Manager | 8  |
| Top Ten Holdings                 | 12 |
| Investment Portfolio             | 13 |
|                                  |    |

### GOVERNANCE

| Interim Management Report           | 15 |
|-------------------------------------|----|
| Directors' Responsibility Statement | 16 |

### FINANCIAL STATEMENTS

| Income Statement                  | 17 |
|-----------------------------------|----|
| Statement of Financial Position   | 18 |
| Statement of Changes in Equity    | 19 |
| Notes to the Financial Statements | 20 |

### OTHER INFORMATION

| Glossary of Terms       | 23 |
|-------------------------|----|
| Directors and Officers  | 26 |
| Shareholder Information | 27 |

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### Cover: Warsaw, Poland

Regionally, markets in Central and Eastern Europe were some of the best performers across EMEA, with the Czech Republic, Poland, Greece, and Hungary returning more than 20-35% in GBP terms. While stock-specific developments were evident, geopolitics played an outsized role, with growing hopes for a ceasefire in Ukraine reducing risk concerns for investors and propelling markets higher.

# **Be in the know: receive the latest BEMO News**

We issue regular email updates on BEMO's progress, including monthly performance statistics and commentary, links to independent research and other news and views.

If you have not already signed up, we invite you to do so by visiting [www.bemoplc.com](http://www.bemoplc.com) and clicking on 'Register for email updates', or by scanning the QR code. We will do the rest.

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# Financial Highlights

for the year ended 30 September 2024

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NAV total return1,# Share price total return1,# Dividend per Ordinary Share1,#

(31 March 2024: 13.2%) (31 March 2024: 12.8%) (31 March 2024: 6.0p)

| For the six months ended 31 March   | 2025   | 2024   | % change |
|-------------------------------------|--------|--------|----------|
| NAV per Ordinary Share1             | 765.2p | 682.1p | 12.2%    |
| Share price                         | 652.5p | 532.5p | 22.5%    |
| Share price total return1,#         | 20.0%  | 12.8%  |          |
| Benchmark                           | 7.8%   | 5.8%   |          |
| Discount to NAV per Ordinary Share1 | 14.7%  | 21.9%  |          |
| Dividend yield1,2,3                 | 2.8%   | 3.2%   |          |
| Ongoing charges1                    | 1.6%   | 1.8%   |          |

|                           | 31 March 2025 |         | 31 March 2024 |         |         | 30 September 2024 |         |         |         |
|---------------------------|---------------|---------|---------------|---------|---------|-------------------|---------|---------|---------|
|                           | Revenue       | Capital | Total         | Revenue | Capital | Total             | Revenue | Capital | Total   |
| Return per Ordinary Share | 4.25p         | 67.07p  | 71.32p        | 5.54p   | 69.89p  | 75.43p            | 18.97p  | 86.71p  | 105.68p |

Revenue return (earnings) per Ordinary Share is based on the revenue return of £501,000 (31 March 2024: £653,000; and the full year to 30 September 2024: £2,238,000). Capital return per Ordinary Share for the half year is based on a net capital gain of £7,913,000 (31 March 2024: net capital gain of £8,245,000; and full year to 30 September 2024: net capital gains of £10,229,000). These calculations are based on the weighted average of 11,796,902 (31 March 2024: 11,796,902; and 30 September 2024: 11,796,902) Ordinary Shares in issue during the period/year.

As at 31 March 2025, there were 11,796,902 Ordinary Shares of 10 pence each in issue (31 March 2024: 11,796,902; and 30 September 2024: 11,796,902) which excludes 3,318,207 Ordinary Shares held in treasury (31 March 2024: 3,318,207; and 30 September 2024: 3,318,207 shares held in treasury). The shares held in treasury are treated as not being in issue when calculating the weighted average of Ordinary Shares in issue during the period/year. Since the period end and up to 31 May 2025, the Company has bought back nil shares for cancellation.

1 Alternative Performance Measures ("APMs") definitions can be found in the Glossary on pages 23 to 25.

- 2 The yield as of 31 March 2025 is comprised of the 2024 final dividend of 12.5 pence per share and the interim dividend for the six months to 31 March 2025 of 6 pence per share, based on the share price as at 31 March 2025.
- 3 The yield as of 31 March 2024 is comprised of the 2023 final dividend of 11 pence per share and the interim dividend for the six months to 31 March 2024 of 6 pence per share, based on the share price as at 31 March 2024.

\* Movement to 31 March relates to the preceding six months and movement to 30 September relates to the preceding twelve months. # Key Performance Indicator.

# Chairman's Statement

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Frances Daley Chairman

To date, this financial period has continued the trend of the prior year in delivering strong capital growth to our shareholders.

1 Indices based on relevant MSCI Regional indices.

### Performance

To date, this financial period has continued the trend of the prior year in delivering strong capital growth to our shareholders. It gives me great pleasure to report that our Investment Manager delivered a NAV total return of 10%, outperforming the comparator benchmark by 2.2%. This strong performance in both absolute and relative terms serves to highlight the attractive diversification offered by the EM EMEA region relative to other equity investment strategies. Furthermore, this return was even stronger when compared to benchmark indices for developed and emerging equity markets, which it outperformed by 8.1% and 11.6% respectively in GBP terms1 .

The relative outperformance of the Company's NAV total return over the past two financial years has moved the Company firmly above the benchmark over one, three, five, and ten-year periods. This performance has strengthened the Board's belief in the Company's proposition, which provides exposure to high-growth economies in an under-researched region, while also offering dividend streams that are already attractive and likely to increase.

Whilst we are delighted with this outcome, the Investment Manager has cautioned that the outlook ahead has become increasingly uncertain, not just for your Company, but for all economies globally. This follows rising market volatility stemming from US-led trade policy, which has sent shock waves through traditional supply chains and raised business uncertainty. Despite this unfavourable backdrop, the Investment Manager continues to emphasise the distinctive attractions of the EM EMEA region, which has a lower exposure to the United States in terms of goods exports and a higher concentration of locally dominant business models. This, in turn, should provide the region with a degree of insulation from the current trade uncertainty. However, we remain vigilant about the impact of falling global growth.

### Investment Portfolio

The portfolio's holdings in Central and Eastern Europe were the strongest performers. This uplift, however, owes much to geopolitics, as increasing hopes about the prospect of an end to the war in Ukraine lifted valuations higher. For all the deep uncertainties about the end of the war, the recent market performance offers insight into the region's potential to deliver strong returns in the event of a lasting ceasefire. Central European nations such as Poland are uniquely positioned to benefit, given their proximity to the war zone and the improvements that an end to the fighting would bring for sentiment, investment, and earnings expectations.

In contrast, Saudi Arabia, our portfolio's largest market, underperformed the EMEA region (while still outperforming both developed and emerging market indices in GBP terms1 ). Broadly, Middle Eastern economies have greater sensitivity to lower growth expectations and a weaker US Dollar – both effects of increasing trade uncertainty. Kuwait and the UAE, however, managed to defy this trend thanks to country-specific factors. Kuwait benefitted from the introduction of a new debt law, while the UAE saw increased inflows of investment capital attracted by the country's increasingly diversified economy.

In my last update, I highlighted the welcome developments in South Africa following a once-in-a-generation election result that forced the African National Congress ('ANC') into a coalition to govern. This financial year has taken some of the shine off this promise, as investors await evidence of effective reform implementation. Despite this, the market has offered strong stock selection opportunities from which your Company has benefitted, with its investments in gold stocks in particular delivering strong absolute and relative returns for shareholders as precious metals demand soared to new highs.

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### HALF YEAR PERFORMANCE: 1 OCTOBER 2024 TO 31 MARCH 2025 (%, GBP) - BEMO PLC vs. COMPARATIVE BENCHMARKS1

1 Indices based on relevant MSCI Regional indices. Source: Barings, Refinativ, Morningstar, 31 March 2025.

> In contrast, Turkey delivered a negative absolute return over the period. The main cause was the arrest of Istanbul Mayor Ekrem İmamoğlu, seen as President Erdoğan's main rival. This incident has highlighted the weakness of institutions and the rule of law, challenging Turkey's investment rationale. Although these developments are disappointing, their negative impact on the Company's performance has been limited by the low weighting of Turkey in our portfolio.

### Russian Assets

Russian assets in the portfolio continue to be valued at zero while extensive sanctions and restrictions on the sale of securities remain in place. However, the Board remains focused on how shareholder value can best be preserved, created, and realised in relation to these holdings. A welcome development this financial year has been the realisation of £1 million from the sale of Nebius N.V. (formerly Yandex N.V.), following three realisations of other Russian holdings during the prior year. Although these are positive developments, the Board will continue to value the remaining assets at zero until circumstances permit otherwise.

The Board remains focused on the value that the Company's remaining Russian holdings may generate for shareholders and is actively exploring ways, in conjunction with the Investment Manager, to divest these assets while ensuring compliance with global sanctions.

### Discount

The discount as of 31 March 2025 was 14.7%, and the average discount during the period was 16.3%. Although this compares favourably with the discount of 21.9% as of 31 March 2024, the average discount of the Company has widened since the write-down of Russian assets in the first quarter of 2022. This, along with elevated levels of broader market volatility within our investment universe and global equity markets, has also heightened discount volatility. This impact is not unique to the Company and has affected many investment trusts.

The Board continues to focus on discount management, aiming to contain discount volatility. While share buybacks remain an option available for the Company to help manage the discount, they are significantly less effective during periods of elevated market volatility, as has been the case recently. As a result, the Company has not bought back any shares during this financial period.

# Discount Control Mechanism and Strategic Options

The Company has now entered the last year before the discount and performance targets set in October 2020, in conjunction with the

This strong performance in both absolute and relative terms serves to highlight the attractive diversification offered by the EM EMEA region relative to other equity investment strategies. broadening of the investment mandate, will be tested. While the portfolio's outperformance since 2022 puts the performance target within realistic reach, the Board foresees the discount management target being missed. If the September 2025 targets are not met, the Board will consider the case for a tender offer alongside other strategic options, taking account of the Company's remaining Russian assets.

# Gearing

There were no borrowings during the period. As of 31 March 2025, there was net cash of £3.3 million (30 September 2024: £3.8 million). The Company does not currently use a loan facility but keeps its gearing policy under review.

### Interim Dividend

In the first half of the financial year under review, the income account generated a return of 4.3 pence per Ordinary Share, compared with 5.5 pence over the same period last year. The Directors are declaring an interim dividend of 6 pence per share, by utilising revenue reserves. Based on dividends paid over the prior 12 months, and on the share price as of 31 March 2025, the Company's shares yielded 2.8%. The Board believes that this remains an attractive yield. The Company retains the flexibility to pay out up to 1% of NAV per annum from capital as income to shareholders.

### Outlook

Looking ahead, economic activity prospects remain uncertain in the light of growing trade frictions. While risks may well be reduced somewhat by progress in trade negotiations, markets are likely to be more sensitive to signs of deteriorating earnings. This makes bottom-up stock selection a more powerful driver of performance than ever, providing real value to shareholders.

The Company's strategy therefore, remains firmly focused on the earnings profile of the individual companies in our portfolio, seeking out management teams with strong records of growth and returns to shareholders.

Emerging Europe's domestically driven economies have benefitted from a lower exposure to recent tradeinduced shifts. However, looking ahead, Europe's refocus on its domestic agenda, including increased military spending and self-reliance, positions Central and Emerging Europe as unique and cost-effective manufacturing destinations. This shift bolsters the region's growth prospects. Plausible outcomes of the Ukraine war reinforce this positive potential in two ways. Firstly, an end to hostilities would reduce risks. Secondly, residual security threats will maintain the incentive to expand defence manufacturing capacity, thereby supporting aggregate demand.

In light of the weakness in the price of oil and the US dollar, Middle Eastern economies look set to remain relatively subdued. This has led countries in the region to recalibrate and reprioritise their large-scale investment projects as oil-related revenues have fallen. While investment is slowing, increased prudence is welcome, positioning these economies to reap a higher economic benefit when the backdrop turns more favourable.

In South Africa, although precious metals have offered a relative safe haven amidst the recent market turmoil, the outlook for the economy rests firmly on the ultimate success of the Government of National Unity. If this coalition can continue to manage its internal tensions and push through the reforms South Africa desperately needs, we could begin to see the country's promise coming to the investment forefront once again.

### Promotional Activity

The Board and Investment Manager have an ongoing communications programme that seeks to maintain the Company's profile and investment remit, particularly among retail investors. During the review period, we have continued to distribute our monthly BEMO News, which is emailed to engaged supporters, including

many hundreds of the Company's shareholders. These emails provide relevant news, views, performance updates, and links to topical content. If you have not already done so, I encourage you to sign up for these targeted communications by visiting the Company's web page at www.bemoplc. com and clicking on 'Register for Email Updates'.

Frances Daley Chairman 6 June 2025

# Business Model and Strategy

# Barings Emerging EMEA Opportunities PLC

| Focusing on the markets of Emerging<br>Europe, the Middle East and Africa, the<br>Company seeks out attractively valued,<br>quality companies across this diverse and<br>fast-changing region. | Managed by one of the region's most<br>experienced investment teams with a<br>consistent track record of delivering<br>relative outperformance. | A differentiated and innovative<br>investment process driven by<br>fundamental bottom-up analysis –<br>with a strong focus on environmental,<br>social and governance factors. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

# Overview

Barings Emerging EMEA Opportunities PLC (the "Company") was incorporated on 11 October 2002 as a public limited company and is an investment company in accordance with the provisions of Section 833 of the Companies Act 2006 (the "Act"). It is a member of the Association of Investment Companies (the "AIC"). The ticker is BEMO.

As an investment trust, the Company has appointed an Alternative Investment Fund Manager, Baring Fund Managers Limited (the "AIFM"), to manage its investments.

The AIFM is authorised and regulated by the Financial Conduct Authority (the "FCA"). The AIFM has delegated responsibility of the investment management for the portfolio to Baring Asset Management Limited (the "Investment Manager" or "Manager"). Further information on the Investment Manager, their investment style and management of the Investment Portfolio can be found on pages 13 to 14.

The Company's primary purpose is to meet its investment objective to deliver capital growth, principally through investment in emerging and frontier equity securities listed or traded on EMEA markets.

The AIFM receives an investment management fee of 0.75% per annum of the Net Asset Value ("NAV") of the Company. This is paid monthly in arrears based on the level of net assets at the end of the month.

The Company has no employees and the Board is comprised of Non-Executive Directors. The day-to-day operations and functions of the Company have been delegated to thirdparty service providers, which are subject to the ongoing oversight of the Board. In line with the stated investment style, the Manager takes a bottom-up approach, founded on research carried out using the Manager's own internal resources. This research, which has a strong focus on environmental, social and governance issues, enables the Manager to identify what it believes to be the most attractive stocks in EMEA markets. Further information can be found on pages 21 to 23 of the Annual Report and Accounts for 2024.

### Investment Objective

The Company's investment objective is to achieve capital growth, principally through investment in emerging and frontier equity securities listed or traded on Eastern European, Middle Eastern and African (EMEA) securities markets. The Company may also invest in securities in which the majority of underlying assets, revenues and/or profits are, or are expected to be, derived from activities in EMEA but are listed or traded elsewhere (EMEA Universe).

### Investment Policy

The Company intends to invest for the most part in emerging and frontier equity listed or traded on EMEA securities markets or in securities in which the majority of underlying assets, revenues and/or profits are, or are expected to be, derived from activities in EMEA but are listed or traded elsewhere. To achieve the Company's investment objective, the Company selects investments through a process of bottom-up fundamental analysis, seeking long-term appreciation through investment in mispriced companies.

Where possible, investments will generally be made directly into public listed or traded equity securities including equityrelated instruments such as preference shares, convertible securities, options, warrants and other rights to subscribe or acquire equity securities, or rights relating to equity securities.

It is intended that the Company will generally be invested in equity securities; however, the Company may invest in bonds or other fixed-income securities, including high risk debt securities. These securities may be below investment grade. The number of investments in the portfolio will normally range between 20 and 65.

The Company may invest in unquoted securities, but the amount of such investment is not expected to be material. The maximum exposure to unquoted securities should be restricted to 5% of the Company's gross assets, at the time of investment, in normal circumstances. The Company may also invest in other investment funds in order to gain exposure to EMEA countries or gain access to a particular market, or where such a fund represents an attractive investment in its own right. The Company will not invest more than 10% of its gross assets in other UK listed closed-ended investment funds, save that, where such UK listed closed ended investment funds have themselves published investment policies to invest no more than 15% of their total assets in other listed closedended investment funds, the Company will invest not more than 15% of its gross assets in such UK listed closed ended investment funds.

Whilst there are no specific limits placed on exposure to any one sector or country, the Company seeks to achieve a spread of risk through continual monitoring of the sector and country weightings of the portfolio. The Company's maximum limit for any single investment at the time of purchase is the higher of 15% of gross assets or the weight of the purchased security in the comparator benchmark plus 5%, with an upper maximum limit of 20% of gross assets (excluding for cash management purposes).

The Company may use borrowed funds to take advantage of investment opportunities. However, it is intended that the Company would only be geared when the Directors, advised by the Investment Manager, have a high level of confidence that gearing would add significant value to the portfolio. The Investment Manager has discretion to operate with an overall exposure of the portfolio to the market of between 90% and 110%, to include the effect of any derivative positions.

The Company may use derivative instruments for the purpose of efficient portfolio management (which includes hedging) and for any investment purposes that are consistent with the investment objective and policies of the Company.

### Benchmark

The Company's comparator benchmark is the MSCI Emerging Markets EMEA Index (net dividends reinvested). Prior to 16 November 2020, the Benchmark was the MSCI EM Europe 10/40 Index (net dividends reinvested).

### Discount Control Mechanism

The Board is aware of shareholders' continued desire for a strong discount control mechanism, though also mindful of the need to provide the Company the opportunity to achieve its goal of outperforming its benchmark.

With effect from 1 October 2020, the Board approved a tender offer trigger mechanism to provide shareholders with a tender offer for up to 25% of the Company's issued Ordinary Share capital if:

- (i) the average daily discount of the Company's market share capital to its net asset value ('cum-income') exceeds 12%, as calculated with reference to the trading of the Company's shares over the period between 1 October 2020 and 30 September 2025; or
- (ii) the performance of the Company's net asset value per share on a total return basis does not exceed the return on the MSCI Emerging Markets EMEA Index (net) by an average of 50 basis points per annum over the Calculation Period.

Please refer to the shareholder circular dated 19 October 2020 for further details.

In addition, the Board may use its share buy back powers to provide some liquidity to the market and limit discount volatility, where possible, in normal market conditions.

# Report of the Investment Manager

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### EMEA MARKET PERFORMANCE & CURRENCY RETURNS – 1 OCTOBER 2024 TO 31 MARCH 20251

 1 Market returns, based on MSCI Indices, and currency returns in GBP. Source: Barings, Refinativ, 31 March 2025.

### Market Summary

Emerging European, Middle Eastern, and African (EMEA) equity markets advanced over the period, with the MSCI EM EMEA index increasing by 7.8% in GBP terms. Against this backdrop, the portfolio outperformed, with the Company's NAV increasing by 10% in GBP terms, providing a positive relative return of 2.2%.

Regionally, markets in Central and Eastern Europe were some of the best performers across EMEA, with the Czech Republic, Poland, Greece, and Hungary returning 20-35% in GBP terms. While stock-specific developments contributed to this strong performance, the major driver was growing hopes for a ceasefire in Ukraine. The resulting improvement in risk perceptions propelled markets higher.

Although returns in the region were notably strong, we acknowledge that the future has become more uncertain. This is largely due to the ambiguity introduced by President Trump's trade policies, which have significantly dampened business confidence, leading many companies to pause investment plans and raising expectations of slower economic growth.

Amongst EMEA markets, the Middle East's economies are the worst affected by the resulting weakening of global growth expectations and the US dollar, which point to lower demand for oil. Lower oil prices reduce the earnings outlook of companies listed on local exchanges, with Saudi Arabian companies being particularly impacted.

Conversely, Kuwait and the UAE have managed to challenge this trend. Kuwait's equity market, with its heavy concentration on financial services, responded positively to the unveiling of a new debt law and expectations of a forthcoming mortgage law. The UAE market's strong performance has been driven by a relatively better earnings outlook, reflecting its more diversified economy.

South African equities' relatively muted performance reflects two opposing forces. The large financial sector has been subject to profit-taking as investors digest the ongoing fiscal consolidation undertaken by the new Government of National Unity, formed last year. At the same time, gold stocks have risen significantly as demand for the yellow metal soared to new highs. This has led to a significant degree of divergence in share price performance and many stock selection opportunities

EM EMEA stands out as having relatively low direct exposure to the US in the form of goods exports, while its stock exchanges predominantly feature companies with locally dominant business models. in South Africa — a situation that plays to the Company's strengths as a bottom-up investor.

Turkey was one of only two markets in which the Company is invested that lost ground over the period. Disappointingly, while the central bank has returned to orthodoxy in its monetary policy, the arrest of Istanbul Mayor Ekrem İmamoğlu, seen as President Erdoğan's main rival, cast doubt on the investment case for Turkey and has left the national currency (lira) significantly weaker.

### Income

The Company's key objective is to deliver capital growth from a carefully selected portfolio of emerging EMEA companies. However, we are also focused on generating an attractive level of income for investors from the companies in the portfolio.

We regularly emphasise that the region in which we invest offers not only unrecognised growth potential but also attractive levels of income, solidifying its place as a strong income diversifier.

We believe there are good prospects for further expansion of dividends, due to rising payout ratios and efficiency gains.

### Macro Themes

In line with our bottom-up approach, our primary focus is to identify attractive investment opportunities at the company level for our shareholders. Nevertheless, we remain vigilant and mindful of broader macro effects within the region. This in turn helps to support the contribution to performance from our company selection, accessing long-term growth opportunities, while reducing the negative effects on performance from major macro dislocations.

#### Trump Tariffs: Uncertainty Abounds

This year has seen a resurgence in market volatility following the introduction of trade tariffs by the Trump administration on imports from traditional allies and adversaries alike. Given the unconstrained and erratic nature of this shift in policy,

the resulting uncertainty is causing businesses to put their investment plans on hold. This could ultimately result in a global environment of lower investment and weakened growth, increasing the risk of recession.

As investors continue to digest these developments, attention will begin to refocus on what is observable, namely the exposure of various nations' economies and stock markets to the US. In this context, EMEA stands out as having relatively low direct exposure to the US in the form of goods exports, while its stock exchanges predominantly feature companies with locally dominant business models. We believe this should position the region to be more defensive due to its sensitivity to the current trade uncertainty.

#### Central Europe: A ceasefire in Ukraine?

An important development this year has been the implications of the new US administration's goal of bringing about a ceasefire in Ukraine. The European political reaction to US policy on Ukraine, perceived as weakening traditional alliances, has refocused Europe on investing more in its defence. This shift is likely to spur higher military budgets, which will probably be spent on a new foundation of European-led defence manufacturing. Furthermore, this geopolitical development has arguably influenced Germany to kick off a €500 billion infrastructure programme funded by the reform of its constitutional 'debt brake'. This fiscal policy shift in Germany has the potential to reinvigorate the wider European economy.

In addition, a Ukraine/Russia ceasefire — if achieved — would support Europe in three key areas. First, the immediate lowering of risk sentiment would lift European valuations generally, with Central European nations benefitting disproportionately. Second, a resolution would likely reduce energy prices throughout Europe, benefitting consumers and industry, and supporting corporate profitability. Third, upward revisions to growth expectations could encourage

investment and improve sentiment. Central European nations such as Poland, have a higher proportion of sales and earnings generated domestically, and should therefore be particularly well positioned to benefit.

#### South Africa: Gold Rush

Gold has soared in price from \$1,800 per troy ounce at the end of 2023 to trading close to \$3,400 by March 2025. This upward movement has been fuelled by a range of factors, including war, inflation, and increased weighting of gold in international reserves by central banks. For some, the current interest in gold reflects concern for the state of the global economy. For others, it reflects a much narrower concern, namely, an overreliance on the US dollar.

To that end, buying has been most enthusiastic in China and India, gathering pace following Russia's invasion of Ukraine and the subsequent weaponisation of the dollar by the United States. This shift in central bank purchasing fundamentally changes the behaviour of gold as an asset class, providing a greater degree of stability. This has been observed most recently as speculators fled the market, but prices continued to rise amid an expansion of central bank buying.

When looking at places to invest in gold, South Africa stands out. It boasts the world's largest known gold reserves, primarily concentrated in the Witwatersrand Basin, with its South Deep mine holding the largest remaining gold reserves in the world. Indicating not only gold's improving fundamentals but also the move toward safe-haven assets at a time of rising volatility, our portfolio benefitted significantly from its exposure to gold, with our positions in Gold Fields and AngloGold both delivering close to 70% returns in GBP for the first quarter of 2025.

#### Turkey: Snakes and Ladders

In our last update, we wrote about the green shoots taking hold in Turkey's economy as President Recep Erdoğan seemingly re-embraced orthodox

### Asset Allocation

### PORTFOLIO COUNTRY WEIGHT (%)

![](_page_11_Figure_4.jpeg)

#### 0% 10% 20% 30% 40% 50% 60% Financials Materials Comm. Services Energy Info. Technology Con. Staples Health Care Real Estate Con. Discretionary Industrials 49.9% 15.6% 7.7% 5.5% 5.2% 4.9% 4.0% 3.8% 2.3% 1.1%

PORTFOLIO SECTOR WEIGHT (%)

Source: BEMO PLC. 31 March 2025.

Source: BEMO PLC. 31 March 2025.

monetary policy by appointing the wellrespected Mehmet Simsek as Minister of Treasury and Economics. The move aimed to convince investors that Turkey was prepared to rebalance its economy, and it had begun to bear fruit in the form of greater credibility and falling inflation.

However, this positive trend was reversed by the resurgence of political risk with the arrest in March 2025 of Istanbul Mayor Ekrem İmamoğlu, seen as President Erdoğan's main rival, along with several other opposition figures. This development raises concerns about the broader reform agenda in Turkey and points to a weakening of institutions and the rule of law. Since foreign direct investment rests on three key pillars the rule of law; political and structural stability; and a trusted, established system in which to raise and arbitrate disputes — these events in Turkey have delivered a blow to all three pillars, resulting in significant weakening in the Turkish lira.

While these developments in Turkey are disappointing, Turkey represents only a small proportion of our portfolio. Moreover, in response to rising political risk that could dent central bank credibility in delivering lower inflation and a stable currency, we reduced the Company's Turkey risk exposure to neutral relative to the benchmark weight by taking profits in several companies within the portfolio that had delivered significant returns in 2024.

### Company Selection

Our team regularly engages with management teams and analyses industry competitors to gain an insight into a company's business model and sustainable competitive advantages. Based on this analysis, we seek to take advantage of these perceived inefficiencies through our in-depth fundamental research, which includes an integrated environmental, social and governance (ESG) assessment, and active engagement, to identify and unlock mispriced growth opportunities for our shareholders.

Stock selection was the main driver of the portfolio's relative return over the period,

whilst sector asset allocation had a small positive impact.

The Middle East was the largest contributor to the relative performance, with Saudi Arabia and, to a lesser extent, the UAE generating alpha across a range of sectors. From a sector perspective, stock selection in the energy and financial sectors, in addition to being underweight in utilities and IT services, drove performance across the Middle East region. In financials, our overweight in Abu Dhabi Commercial Bank was the best performer as it reported strong results for the year ending December 2024 that surpassed market expectations. The bank also raised guidance for this year and provided a set of medium-term targets, which the market took positively. Saudi Arabia's Al Rajhi, the world's largest Islamic bank, was another overweight position that also contributed positively, beating third-quarter earnings expectations and raising guidance.

In Saudi Arabia, our underweight positioning in utility company ACWA and information technology company ELM further added to returns, as the share prices of both those companies fell back following weak results and guidance. In the energy sector, our core overweight holding in ADNOC Drilling in the UAE was a strong contributor to relative returns as the company posted solid results for the year ending December 2024, as it continues to execute on its growth strategy whilst delivering cost efficiencies.

The materials sector in South Africa was a strong source of alpha generation, with investors gravitating toward gold and precious metal stocks, driving up Goldfields, AngloGold Ashanti, and Impala Platinum.

Amsterdam-based holding company Nebius was the best performer within the communication sector following the divestment of its stake in Russia's Yandex and its subsequent re-listing on the Nasdaq exchange. We took advantage of this liquidity event and sold out of our position, as we do not consider the company to be core to our investment mandate.

Financials were the strongest contributor to relative returns. Greek banks Alpha and Piraeus were standout performers, supported by a combination of undemanding valuations, high quality assets, and a positive macroeconomic backdrop. In Poland, insurance company PZU also benefitted from relative returns, as investors applauded the new interim CEO's strategic goals of improving corporate governance, which includes its dividend policy, and focusing on long-term value creation. Elsewhere, PKO Bank also delivered strong results with sequential net interest margin improvement and rising anticipation of accelerated lending this year. In Hungary, local bank OTP achieved an all-time high as the equity risk premium dropped on hopes for a potential détente between Russia and Ukraine. Offsetting positive relative returns within financials, our overweight in South African bank FirstRand detracted from the portfolio's performance, as investors priced in further potential fines relating to the bank's UK subsidiary, with a number of

peers increasing provisioning relating to the Financial Conduct Authority's investigation into discretionary commission arrangements within UK motor finance.

The sharp increase in political risk in Turkey, as discussed above, dented investors' confidence that had been built up by the country's previous pivot towards orthodox monetary policy, and forced the central bank to intervene in support of the Turkish lira. Our investment in Yapi Kredi Bank suffered as a result, making Turkey the main detractor from performance during the reporting period.

### Outlook

Political and economic uncertainty are likely to remain present for the remainder of the year. As a result, we remain vigilant concerning the impact of greater volatility generated by news headlines. Despite this, we believe the EMEA region is uniquely positioned to manoeuvre successfully through the changing geopolitical landscape. Whilst not immune to a potential slowdown in the global economy, the combination of domestic drivers, a possible resolution to the Ukraine/Russia conflict, and limited exposure to US tariffs should mitigate some risk.

Looking at Emerging Europe, we believe that its domestically oriented economies have the ability to withstand the shocks of global trade conflicts while being able to capitalise on nearshoring opportunities by being a cost-effective manufacturing destination as Europe refocuses on its domestic agenda. Furthermore, the new US administration's diplomatic efforts toward Russia, aimed at addressing the conflict stemming from Russia's aggression in Ukraine, are expected to enhance the investment appeal of Emerging European equity markets and bolster the region's growth prospects.

As regards the Middle East, the structural transformation of its economies and overall society will continue over the long term, but the pace of capital investments and reforms may have to be slowed as oil-related revenues moderate. Despite this, the region's stock exchanges

continue to broaden and deepen as new companies come to market, making the region increasingly relevant to a host of new investors across the emerging market sphere.

Turkey's investment case is now at a crossroads. The country's economic team, led by Mehmet Simsek, has taken steps to keep Turkey on the path of orthodox economic policy.However, what Turkey does politically will be crucial. Moving towards democracy can ultimately continue the transition of Turkey's investment case from being cyclical to structural, providing the necessary ingredient to boost Turkey's credibility and ultimately attract foreign capital.

Finally, whilst South Africa's rich natural resources have kept a shine on this region, the investment case for the country hinges on its political development. Last year's elections produced a new governing coalition, bringing the market-friendly Democratic Alliance into government alongside the incumbent African National Congress. We share the hopes of many South Africans that this change marks an inflection point after a frustrating period of stagnant growth and unemployment. If this coalition can hold, there is a wealth of opportunity for structural reform to take hold, notably in areas such as the labour market and business regulation, unlocking South Africa's growth potential and boosting living standards.

# Top Ten Holdings

at 31 March 2025

| 1 | Al Rajhi Bank           |                                                                                                                                         |                              | 2<br>Naspers Limited      |                                                                                                                                             |  |  |  |
|---|-------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|------------------------------|---------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|
|   | Saudi Arabia            | As the world's largest Islamic bank focused<br>on retail lending, Al Rajhi benefits from                                                |                              | South Africa              | Although listed in South Africa, the company<br>is one of the world's largest technology                                                    |  |  |  |
|   | Financials              | higher margins due to its low-cost deposits.<br>Its predominantly fixed-rate lending allows                                             |                              | Communication<br>Services | investors, with over two billion customers<br>across multiple geographies. Its investments                                                  |  |  |  |
|   | £6,733,000              | margin expansion as global interest rates<br>fall. The bank is also growing fintech<br>initiatives like Emkan and Urpay and plans       |                              | £4,263,000                | include food delivery services like Brazil's<br>iFood and India's Swiggy, and it is also the<br>largest global investor in China's Tencent. |  |  |  |
|   | 7.46%                   | to monetize several subsidiaries to create<br>shareholder value.                                                                        |                              | 4.72%                     |                                                                                                                                             |  |  |  |
| 3 | Capitec                 |                                                                                                                                         | 4                            | FirstRand                 |                                                                                                                                             |  |  |  |
|   | South Africa            | Capitec is South Africa's fastest-growing<br>bank, leading and benefitting from new                                                     |                              | South Africa              | FirstRand is a leading South African bank<br>offering a diverse range of services, including                                                |  |  |  |
|   | Financials              | trends in the country's financial services<br>sector. Known for its four pillars of Simplicity,                                         |                              | Financials                | lending, insurance, and investment products.<br>The bank has a higher market share across                                                   |  |  |  |
|   | £3,466,000              | Affordability, Accessibility, and Personalised<br>Experiences, Capitec has a strong brand<br>franchise and an excellent management team |                              | £3,353,000                | several segments domestically while also<br>having some international exposure, most<br>notably through its UK financing subsidiary         |  |  |  |
|   | 3.84%                   | that has executed well over the past two<br>decades, creating significant value.                                                        |                              | 3.71%                     | Aldermore, resulting in a high return on<br>equity profile.                                                                                 |  |  |  |
|   |                         |                                                                                                                                         |                              |                           |                                                                                                                                             |  |  |  |
| 5 | Gold Fields             |                                                                                                                                         | 6                            | OTP Bank                  |                                                                                                                                             |  |  |  |
|   | South Africa            | Gold Fields Limited is a globally diversified<br>gold producer with approximately nine                                                  |                              | Hungary                   | OTP Bank Group is the largest commercial<br>bank of Hungary and one of the largest                                                          |  |  |  |
|   | Materials               | operating mines in Australia, South Africa,<br>Ghana, Chile and Peru and one project<br>in Canada. The company is involved in           |                              | Financials                | independent financial service providers<br>in Central and Eastern Europe, offering<br>banking services for private individuals and          |  |  |  |
|   | £3,001,000              | underground and surface gold and surface<br>copper mining and silver and related<br>activities, including exploration, extraction,      |                              | £3,000,000                | corporate clients.                                                                                                                          |  |  |  |
|   | 3.32%                   | processing and smelting.                                                                                                                |                              | 3.32%                     |                                                                                                                                             |  |  |  |
| 7 | National Bank of Kuwait |                                                                                                                                         | 8<br>The Saudi National Bank |                           |                                                                                                                                             |  |  |  |
|   | South Africa            | National Bank of Kuwait, with 60% ownership<br>of Islamic bank Boubyan—serving a                                                        |                              | Saudi Arabia              | Saudi National Bank is the largest bank in<br>Saudi Arabia by assets, following the merger                                                  |  |  |  |
|   | Financials              | younger, faster-growing customer base<br>and considering a merger with Gulf Bank—<br>could see faster loan growth, especially in        |                              | Financials                | of National Commercial Bank and Samba<br>Financial Group in 2021. The bank boasts<br>a diversified lending profile, enabling it to          |  |  |  |
|   | £2,918,000              | mortgages, if political paralysis eases through<br>a government-parliament détente.                                                     |                              | £2,768,000                | benefit from both margin expansion as<br>interest rates decrease and corporate loan                                                         |  |  |  |
|   | 3.23%                   |                                                                                                                                         |                              | 3.07%                     | growth driven by Saudi Arabia's Vision 2030<br>program and its associated giga projects.                                                    |  |  |  |
| 9 | Qatar National Bank     |                                                                                                                                         | 10                           | Saudi Telecom             |                                                                                                                                             |  |  |  |
|   | Qatar                   | Qatar National Bank, the domestic market<br>leader and largest bank by assets in the                                                    |                              | Saudi Arabia              | Saudi Telecom, the clear market leader,<br>offers extensive telecommunications                                                              |  |  |  |
|   | Financials              | Middle East, benefits from Qatar's expanding<br>LNG capacity and exposure to high<br>growth markets like Turkey and Egypt. It           |                              | Communication<br>Services | infrastructure—mobile, data services,<br>broadband, and cloud computing—and is<br>positively leveraged to Saudi Arabia's growing            |  |  |  |
|   | £2,704,000              | has successfully navigated international<br>challenges, grown its domestic lending                                                      |                              | £2,692,000                | tourism industry, digital initiatives, and push<br>for regional multinational headquarters.                                                 |  |  |  |
|   | 3.00%                   | book, and recently announced a share<br>buyback program.                                                                                |                              | 2.98%                     |                                                                                                                                             |  |  |  |

# Investment Portfolio

at 31 March 2025

|    |                                    | Primary country          | Market value | % of       |
|----|------------------------------------|--------------------------|--------------|------------|
|    | Holding                            | of listing or investment | £'000        | Net assets |
| 1  | Al Rajhi Bank                      | Saudi Arabia             | 6,733        | 7.46%      |
| 2  | Naspers Limited                    | South Africa             | 4,263        | 4.72%      |
| 3  | Capitec                            | South Africa             | 3,466        | 3.84%      |
| 4  | Firstrand                          | South Africa             | 3,353        | 3.71%      |
| 5  | Gold Fields                        | South Africa             | 3,001        | 3.32%      |
| 6  | OTP Bank                           | Hungary                  | 3,000        | 3.32%      |
| 7  | National Bank of Kuwait            | Kuwait                   | 2,918        | 3.23%      |
| 8  | The Saudi National Bank            | Saudi Arabia             | 2,768        | 3.07%      |
| 9  | Qatar National Bank                | Qatar                    | 2,704        | 3.00%      |
| 10 | Saudi Telecom                      | Saudi Arabia             | 2,692        | 2.98%      |
| 11 | Anglogold Ashanti                  | South Africa             | 2,627        | 2.91%      |
| 12 | Alpha Services and Holdings        | Greece                   | 2,621        | 2.90%      |
| 13 | Etihad Etisalat                    | Saudi Arabia             | 2,481        | 2.75%      |
| 14 | Saudi Basic Industries             | Saudi Arabia             | 2,278        | 2.52%      |
| 15 | PKO Bank Polski                    | Poland                   | 2,122        | 2.35%      |
| 16 | Emaar Properties                   | United Arab Emriates     | 2,088        | 2.31%      |
| 17 | Saudi Arabian Oil                  | Saudi Arabia             | 1,988        | 2.20%      |
| 18 | BIM Birlesik Magazalar             | Turkey                   | 1,903        | 2.11%      |
| 19 | Dr Sulaiman Al Habib Medical Group | Saudi Arabia             | 1,887        | 2.09%      |
| 20 | Saudi Arabian Mining               | Saudi Arabia             | 1,885        | 2.09%      |
| 21 | Adnoc Dilling Company              | United Arab Emriates     | 1,792        | 1.99%      |
| 22 | Abu Dhabi Commercial Bank          | United Arab Emriates     | 1,705        | 1.89%      |
| 23 | Komercni Bank                      | Czech Republic           | 1,669        | 1.85%      |
| 24 | PZU                                | Poland                   | 1,650        | 1.83%      |
| 25 | Emirates Telecom                   | United Arab Emriates     | 1,460        | 1.62%      |
| 26 | First Abu Dhabi Bank               | United Arab Emriates     | 1,410        | 1.56%      |
| 27 | Saudi Tadawul Group                | Saudi Arabia             | 1,403        | 1.55%      |
| 28 | Gedeon Richter                     | Hungary                  | 1,371        | 1.52%      |
| 29 | Aldar Properties                   | United Arab Emriates     | 1,357        | 1.50%      |
| 30 | KGHM Polska                        | Poland                   | 1,224        | 1.36%      |
| 31 | Impala Platinum                    | South Africa             | 1,211        | 1.34%      |
| 32 | Piraeus Financial Holdings         | Greece                   | 1,184        | 1.31%      |
| 33 | Jumbo                              | Greece                   | 1,174        | 1.30%      |
| 34 | Saudi Awwal Bank                   | Saudi Arabia             | 1,164        | 1.29%      |
| 35 | Shoprite Holdings                  | South Africa             | 1,157        | 1.28%      |
| 36 | Inpost                             | Poland                   | 908          | 1.01%      |
| 37 | Anglo American                     | South Africa             | 805          | 0.89%      |
| 38 | Riyad Bank                         | Saudi Arabia             | 766          | 0.85%      |
| 39 | Bid Corporation                    | South Africa             | 583          | 0.65%      |
| 40 | Koç Holding                        | Turkey                   | 581          | 0.64%      |

|    | Holding                     | Primary country<br>of listing or investment | Market value<br>£'000 | % of<br>Net assets |
|----|-----------------------------|---------------------------------------------|-----------------------|--------------------|
| 41 | Allegro                     | Poland                                      | 565                   | 0.63%              |
| 42 | Dino Polska                 | Poland                                      | 512                   | 0.57%              |
| 43 | Nedbank Group               | South Africa                                | 497                   | 0.55%              |
| 44 | Industries Qatar            | Qatar                                       | 480                   | 0.53%              |
| 45 | Kuwait Finance House        | Kuwait                                      | 393                   | 0.44%              |
| 46 | Mol Hungarian Oil and Gas   | Hungary                                     | 389                   | 0.43%              |
| 47 | Yapi Ve Kredi Bankasi       | Turkey                                      | 383                   | 0.42%              |
| 48 | Abu Dhabi Islamic Bank      | United Arab Emriates                        | 359                   | 0.40%              |
| 49 | Zabka Group Societe Anonyme | Poland                                      | 355                   | 0.39%              |
| 50 | Akbank                      | Turkey                                      | 353                   | 0.39%              |
| 51 | Haci Omer Sabanci           | Turkey                                      | 321                   | 0.36%              |
| 52 | Mr Price Group              | South Africa                                | 284                   | 0.32%              |
| 53 | The Cooperative Insurance   | Saudi Arabia                                | 209                   | 0.23%              |
| 54 | Anglo American Platinum     | South Africa                                | 3                     | 0.00%              |
|    | Russian investments         | Russia                                      | —                     | 0.00%              |
|    | Total investments           | 86,455                                      | 95.77%                |                    |
|    | Net current assets          |                                             | 3,817                 | 4.23%              |
|    | Net assets                  | 90,272                                      | 100.00%               |                    |

# Russian Investments

As at 31 March 2025, the Company held the following investments. These investments continue to be valued at zero. During the period the Company realised £1,045,872 from disposing of its holding in the Russian investment, Nebius N.V..

|                      | At 31 March 2025 |
|----------------------|------------------|
| Company              | Number of Shares |
| Norilsk Nickel       | 1,509,800        |
| Sberbank             | 1,374,068        |
| Gazprom              | 824,340          |
| United Company Rusal | 572,570          |
| Novatek              | 107,150          |
| Moscow Exchange      | 86,875           |
| Lukoil               | 72,519           |

The Company also has a bank account in Moscow ("S" account) into which dividends from its Russian investments are paid. These amounts are held in rubles and, under the current sanctions regime, cannot be remitted to the Company and may never be received. They are not recognised in the Company's net asset value or in its income statement and are excluded from the management fee. The amount held in the "S" account at 31 March 2025, was 300,400,000 rubles.

# Interim Management Report

### Going Concern

The Directors have made an assessment of the Company's ability to continue as a going concern and are satisfied that the Company has adequate resources to continue in operational existence for a period of at least 12 months from the date when these financial statements were approved.

In making the assessment, the Directors have considered the impact of conflicts in Ukraine and the Middle East on the Company and the investment portfolio. Whilst the write-down of Russian securities in the portfolio has had a significant impact on net asset value, the Company continues to operate at a size similar to levels seen historically. The Directors have also discussed the impact of the conflict on the Company's ability to pay dividends to shareholders, both in the near-term and over the next few years.

The Board keeps the appropriateness of the discount control mechanism under review and, if the September 2025 targets are not met, it will consider the case for a tender offer alongside other strategic options.

The Directors noted that the Company's current cash balance exceeds any short term liabilities and that the Company holds a portfolio of liquid listed investments. The Directors are of the view that the Company is able to meet the obligations of the Company as they fall due. The surplus cash enables the Company to meet any funding requirements and finance future additional investments. The Company is a closed end fund, where assets are not required to be liquidated to meet day to day redemptions.

The Directors are not aware of any material uncertainties that may cast significant doubt on the Company's ability to continue as a going concern, having taken into account the liquidity of the Company's investment portfolio and the Company's financial position in respect of its cash flows, borrowing facilities and investment commitments (of which there are none of significance). Therefore, the financial statements have been prepared on the going concern basis.

### Principal Risks and Uncertainties

The Company is exposed to a variety of risks and uncertainties. The Board, through delegation to the Audit Committee, has undertaken an assessment and review of the principal risks facing the Company, together with a review of any new risks which may have arisen during the year, including those risks which would threaten the Company's business model, future performance, solvency or liquidity. The Directors have considered the impact of the continued uncertainty on the Company's financial position and based on the information available to them at the date of this Report, have fair-value adjusted Russian securities to zero in response to exchange closures and sanction activities as a result of the conflict in Ukraine. The Directors have concluded that no further adjustments are required to the accounts as at 31 March 2025.

A review of the half year, including reference to the risks and uncertainties that existed during the period and the outlook for the Company, can be found in the Chairman's Statement and in the Investment Manager's Report.

The principal risks faced by the Company fall into the following broad categories: Investment Strategy, Adverse Market Conditions, Size of the Company, Share Price Volatility and Liquidity/Marketability Risk, Loss of Assets, Engagement of Third-Party Service providers, and Sanctions.

Information on each of these areas is given in the Strategic Report within the Annual Report and Accounts for 2024. In the view of the Board these principal risks and uncertainties are as applicable to the remaining six months of the financial year as they were to the six months under review.

The Board is aware that due to the current situation in Russia and Ukraine, sanctions imposed by a number of jurisdictions have resulted in the devaluation of the Russian currency, a downgrade in the country's credit rating, a freeze of Russian assets, a decline in the value and liquidity of Russian securities, property or interests, and/or other adverse consequences. Sanctions could also result in Russia taking countermeasures or other actions in response.

These sanctions, and the resulting disruption of the Russian economy, may cause volatility in other regional and global markets and may negatively impact the performance of various sectors and industries. The Board continues to monitor the situation and will provide further updates as needed.

### Related Party Transactions

The Investment Manager is regarded as a related party and details of the management fee payable during the six months ended 31 March 2025 is shown in the Income Statement on page 17. There have been no other related party transactions during the six months ended 31 March 2025. The Directors' current level of remuneration is £29,500 per annum for each Director, with the Chairman of the Audit Committee receiving an additional fee of £3,500 per annum and the Senior Independent Director receiving an additional fee of £1,000 per annum. The Chairman's fee is £39,500 per annum.

# Directors' Responsibility Statement

in respect of the Half Year Report for the six months ended 31 March 2025

# Responsibility Statement

The important events that have occurred during the period under review, the key factors influencing the financial statements and the principal risks and uncertainties for the remaining six months of the financial year are set out in the Interim Management Report on page 15.

The Directors confirm that to the best of their knowledge:

- the condensed set of financial statements has been prepared in accordance with UK Accounting Standards; Financial Reporting Standard 102, and gives a true and fair view of the assets, liabilities and financial position of the Company; and the interim management report (which includes the Chairman's Statement) as required by the FCA's Disclosure Guidance and Transparency Rule 4.2.4R; and
- this Half Year Report includes a fair review of the information required by:
- a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and
- b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions that could do so.

This Half Year Report was approved by the Board of Directors on 6 June 2025 and the above responsibility statement was signed on its behalf by Frances Daley, Chairman.

# Income Statement

for the six months to 31 March 2025 (unaudited)

|                                  | Six months to 31 March 2025 |         |        |         |         | Six months to 31 March 2024 Year ended 30 September 2024 |         |         |         |
|----------------------------------|-----------------------------|---------|--------|---------|---------|----------------------------------------------------------|---------|---------|---------|
|                                  | Revenue                     | Capital | Total  | Revenue | Capital | Total                                                    | Revenue | Capital | Total   |
| Notes                            | £'000                       | £'000   | £'000  | £'000   | £'000   | £'000                                                    | £'000   | £'000   | £'000   |
| Gains/(losses) on investments    |                             |         |        |         |         |                                                          |         |         |         |
| held at fair value through       |                             |         |        |         |         |                                                          |         |         |         |
| profit or loss                   | —                           | 8,015   | 8,015  | —       | 8,605   | 8,605                                                    | —       | 11,082  | 11,082  |
| Foreign exchange gains/(losses)  | —                           | 159     | 159    | —       | (133)   | (133)                                                    | —       | (379)   | (379)   |
| Income                           | 1,002                       | —       | 1,002  | 1,172   | —       | 1,172                                                    | 3,298   | —       | 3,298   |
| Investment management fee        | (65)                        | (261)   | (326)  | (57)    | (227)   | (284)                                                    | (118)   | (474)   | (592)   |
| Other expenses                   | (396)                       | —       | (396)  | (434)   | —       | (434)                                                    | (789)   | —       | (789)   |
| Return/(loss) before taxation    | 541                         | 7,913   | 8,454  | 681     | 8,245   | 8,926                                                    | 2,391   | 10,229  | 12,620  |
| Taxation                         | (40)                        | —       | (40)   | (28)    | —       | (28)                                                     | (153)   | —       | (153)   |
| Return/(loss) for the period     | 501                         | 7,913   | 8,414  | 653     | 8,245   | 8,898                                                    | 2,238   | 10,229  | 12,467  |
| Return/(loss) per ordinary share | 4.25p<br>3                  | 67.07p  | 71.32p | 5.54p   | 69.89p  | 75.43p                                                   | 18.97p  | 86.71p  | 105.68p |

The total column of this statement is the income statement of the Company. The supplementary revenue and capital columns are presented in accordance with the Statement of Recommended Practice issued by the Association of Investment Companies ("AIC SORP").

All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

There is no other comprehensive income and therefore the return for the period/year is also the total comprehensive income for the period/year.

The notes on pages 20 to 22 form part of these financial statements.

# Statement of Financial Position

as at 31 March 2025 (unaudited)

|                                                  |       | At         | At         | At                    |
|--------------------------------------------------|-------|------------|------------|-----------------------|
|                                                  |       | 31 March   |            | 31 March 30 September |
|                                                  |       | 2025       | 2024       | 2024                  |
|                                                  | Notes | £'000      | £'000      | £'000                 |
| Fixed assets                                     |       |            |            |                       |
| Investments at fair value through profit or loss | 6     | 86,455     | 78,018     | 80,082                |
| Current assets                                   |       |            |            |                       |
| Debtors                                          |       | 907        | 692        | 511                   |
| Cash and cash equivalents                        |       | 3,280      | 1,914      | 3,773                 |
|                                                  |       | 4,187      | 2,606      | 4,284                 |
| Current liabilities                              |       |            |            |                       |
| Creditors: amounts falling due within one year   |       | (370)      | (152)      | (1,033)               |
| Net current assets                               |       | 3,817      | 2,454      | 3,251                 |
| Net assets                                       |       | 90,272     | 80,472     | 83,333                |
| Capital and reserves                             |       |            |            |                       |
| Called-up share capital                          | 4     | 1,512      | 1,512      | 1,512                 |
| Capital redemption reserve                       |       | 3,276      | 3,276      | 3,276                 |
| Share premium                                    |       | 1,411      | 1,411      | 1,411                 |
| Capital reserve                                  |       | 82,909     | 73,012     | 74,996                |
| Revenue reserve                                  |       | 1,164      | 1,261      | 2,138                 |
| Total equity                                     |       | 90,272     | 80,472     | 83,333                |
| Net asset per ordinary share – basis and diluted | 5     | 765.22p    | 682.14p    | 706.40p               |
| Number of shares in issue excluding Treasury     | 4     | 11,796,902 | 11,796,902 | 11,796,902            |

The notes on pages 20 to 22 form part of these financial statements.

# Statement of Changes in Equity

for the six months to 31 March 2025 (unaudited)

|                                                           | Called-up<br>capital | Capital<br>share redemption<br>reserve | Share<br>premium<br>account | Capital<br>reserve | Revenue<br>reserve | Total   |
|-----------------------------------------------------------|----------------------|----------------------------------------|-----------------------------|--------------------|--------------------|---------|
|                                                           | £'000                | £'000                                  | £'000                       | £'000              | £'000              | £'000   |
| For the six months ended 31 March 2025                    |                      |                                        |                             |                    |                    |         |
| Opening balance as at 1 October 2024                      | 1,512                | 3,276                                  | 1,411                       | 74,996             | 2,138              | 83,333  |
| Return for the six months to 31 March 2025                | —                    | —                                      | —                           | 7,913              | 501                | 8,414   |
| Contributions by and distributions to shareholders:       |                      |                                        |                             |                    |                    |         |
| Dividends paid                                            | —                    | —                                      | —                           | —                  | (1,475)            | (1,475) |
| Total contributions by and distributions to shareholders: | —                    | —                                      | —                           | —                  | (1,475)            | (1,475) |
| Balance as at 31 March 2025                               | 1,512                | 3,276                                  | 1,411                       | 82,909             | 1,164              | 90,272  |

|                                                           | Called-up<br>share | Capital<br>redemption | Share<br>premium | Capital          | Revenue          |                |
|-----------------------------------------------------------|--------------------|-----------------------|------------------|------------------|------------------|----------------|
|                                                           | capital<br>£'000   | reserve<br>£'000      | account<br>£'000 | reserve<br>£'000 | reserve<br>£'000 | Total<br>£'000 |
| For the six months ended 31 March 2024                    |                    |                       |                  |                  |                  |                |
| Opening balance as at 1 October 2023                      | 1,512              | 3,276                 | 1,411            | 64,767           | 1,896            | 72,862         |
| Return for the six months to 31 March 2024                | —                  | —                     | —                | 8,245            | 653              | 8,898          |
| Contributions by and distributions to shareholders:       |                    |                       |                  |                  |                  |                |
| Dividends paid                                            | —                  | —                     | —                | —                | (1,288)          | (1,288)        |
| Total contributions by and distributions to shareholders: | —                  | —                     | —                | —                | (1,288)          | (1,288)        |
| Balance as at 31 March 2024                               | 1,512              | 3,276                 | 1,411            | 73,012           | 1,261            | 80,472         |

|                                                           | Called-up<br>share | Capital<br>redemption | Share<br>premium | Capital          | Revenue          |                |
|-----------------------------------------------------------|--------------------|-----------------------|------------------|------------------|------------------|----------------|
|                                                           | capital<br>£'000   | reserve<br>£'000      | account<br>£'000 | reserve<br>£'000 | reserve<br>£'000 | Total<br>£'000 |
| For the year ended 30 September 2024                      |                    |                       |                  |                  |                  |                |
| Opening balance as at 1 October 2023                      | 1,512              | 3,276                 | 1,411            | 64,767           | 1,896            | 72,862         |
| Return for the year                                       | —                  | —                     | —                | 10,229           | 2,238            | 12,467         |
| Contributions by and distributions to shareholders:       |                    |                       |                  |                  |                  |                |
| Dividends paid                                            | —                  | —                     | —                | —                | (1,996)          | (1,996)        |
| Total contributions by and distributions to shareholders: | —                  | —                     | —                | —                | (1,996)          | (1,996)        |
| Balance as at 30 September 2024                           | 1,512              | 3,276                 | 1,411            | 74,996           | 2,138            | 83,333         |

The notes on pages 20 to 22 form part of these financial statements.

# Notes to the Financial Statements

for the half year ended 31 March 2025 (unaudited)

# 1. Accounting Policies

Barings Emerging EMEA Opportunities PLC (the "Company") is a company incorporated and registered in England and Wales. The principal activity of the Company is that of an investment trust company within the meaning of Sections 1158/159 of the Corporation Tax Act 2020 and its investment approach is detailed in the Strategic Report set out in the Annual Report and Financial Statements of the Company for the year ended 30 September 2024.

### Basis of Preparation

The Company's financial statements for the six months to 31 March 2025 have been prepared on the basis of the accounting policies set out in the Annual Report and Financial Statements of the Company for the year ended 30 September 2024 and in accordance with FRS 104: "Interim Financial Reporting".

The investments of the Company are listed and are carried at fair value. The Company has therefore elected to remove the Cash Flow Statement from the Half Year Report, as permitted by FRS 102 section 7.

The accounting policies are set out in the Company's Annual Report and Financial Statements for the year ended 30 September 2024 and remain unchanged.

# Going Concern

The financial statements have been prepared on a going concern basis and on the basis that approval as an investment trust company will continue to be met.

In making the assessment, the Directors of the Company have considered the likely impacts of international and economic uncertainties on the Company, operations and the investment portfolio. The Directors also regularly assess the resilience of key third-party service providers, most notably the Investment Manager and Company Administrator. In making their assessment, the Directors have considered the likely impacts of international and economic uncertainties on the Company, operations and the investment portfolio.

The Directors noted that the Company, with the current cash balance and holding a portfolio of listed investments, is able to meet the obligations of the Company as they fall due. The current cash balance enables the Company to meet any funding requirements and finance future additional investments. The Company is a closed-ended fund, where assets are not required to be liquidated to meet day-to-day redemptions.

The Directors have completed stress tests assessing the impact of changes in market value and income with associated cash flows. In making this assessment, they have considered severe but plausible downside scenarios and simulated a 50% reduction in NAV, change in prices and income with the impact on future cash flows. The conclusion was that in a severe but plausible downside scenario the Company could continue to meet its liabilities. Whilst the economic future is uncertain, and the Directors believe that it is possible the Company could experience further reductions in income and/or market value, and changes in expenses, the opinion of the Directors is that this should not be to a level which would threaten the Company's ability to continue as a going concern.

The Directors note that the Company is now in the last year before the discount and performance targets set in October 2020 will be tested. The Board keeps the appropriateness of the discount control mechanism under review and, if the September 2025 targets are not met, it will consider the case for a tender offer alongside other strategic options.

The Directors are not aware of any material uncertainties that may cast significant doubt on the Company's ability to continue as a going concern, having taken into account the liquidity of the Company's investment portfolio and the Company's financial position in respect of its cash flows, and investment commitments (of which there are none of significance). Therefore, the financial statements have been prepared on the going concern basis.

# Segmental Reporting

The Directors are of the opinion that the Company is engaged in a single segment of business, being the investment business.

# 1. Accounting Policies continued

### Comparative Information

The financial information contained in this Half Year Report does not constitute statutory accounts as defined in the Companies Act 2006. The financial information for the half-year period ended 31 March 2025 has not been audited or reviewed by the Company's Auditor. The figures and financial information for the year ended 30 September 2024 are extracted from the latest published financial statements of the Company and do not constitute statutory accounts for that financial year. Those financial statements have been reported on by the Company's Auditor and delivered to the Registrar of Companies. The report of the Auditor was (i) unqualified, (ii) did not include a reference to any matters to which the Auditor drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

### 2. Dividend

During the period, the Company paid a final dividend of 12.5 pence per Ordinary Share for the year ended 30 September 2024 on 7 February 2025 to Ordinary shareholders on the register at 20 December 2024 (ex-dividend 19 December 2024).

An interim dividend of 6 pence per Ordinary Share for the period ended 31 March 2025 has been declared and will be paid on 25 July 2025 to Ordinary shareholders on the register at the close of business on 20 June 2025 (ex-dividend 19 June 2025).

### 3. Return per Ordinary Share

The total return per Ordinary Share is based on the return on ordinary activities after taxation of £8,414,000 (six months ended 31 March 2024: £8,898,000; and year ended 30 September 2024: £12,467,000) and on a weighted average of 11,796,902 Ordinary Shares in issue (excluding Ordinary Shares held in treasury) during the six months ended 31 March 2025 (six months ended 31 March 2024: 11,796,902; and year ended 30 September 2024: 11,796,902).

|                                   | Half year to<br>31 March 2025 |            | Half year to<br>31 March 2024 |            | Year ended<br>30 September 2024 |            |
|-----------------------------------|-------------------------------|------------|-------------------------------|------------|---------------------------------|------------|
|                                   |                               |            |                               |            |                                 |            |
|                                   | Pence                         |            | Pence                         |            |                                 | Pence      |
|                                   | £'000                         | per share  | £'000                         | per share  | £'000                           | per share  |
| Revenue return                    | 501                           | 4.25p      | 653                           | 5.54p      | 2,238                           | 18.97p     |
| Capital return                    | 7,913                         | 67.07p     | 8,245                         | 69.89p     | 10,229                          | 86.71p     |
| Total return                      | 8,414                         | 71.32p     | 8,898                         | 75.43p     | 12,467                          | 105.68p    |
| Weighted average number of shares |                               | 11,796,902 |                               | 11,796,902 |                                 | 11,796,902 |

There are no dilutive instruments issued by the Company. Both the basic and diluted earnings per share are represented above.

### 4. Called – up share capital

|                                                             | Number of<br>shares | Nominal value<br>£'000 |
|-------------------------------------------------------------|---------------------|------------------------|
| Allotted, issued and fully paid Ordinary Shares of 10p each |                     |                        |
| Opening balance                                             | 15,115,109          | 1,512                  |
| Total Ordinary Shares in issue                              | 15,115,109          | 1,512                  |
| Treasury shares                                             | 3,318,207           |                        |
| Total Ordinary Share capital excluding Treasury Shares      | 11,796,902          |                        |

The Company at 31 March 2025 holds 3,318,207 Ordinary Shares in Treasury and are treated as not being in issue when calculating the NAV per share. Shares held in Treasury are non-voting and not eligible for receipt of dividends.

The allotted, called up and fully paid shares at 31 March 2025 consisted of 15,115,109 Ordinary Shares of 10p each in issue, and 3,318,207 Ordinary Shares held in Treasury. Therefore the total number of Ordinary Shares with voting rights and ranking for dividends consisted of 11,796,902 at 31 March 2025.

# 5. Net Asset Value per Ordinary Share

The NAV per Ordinary Share is based on net assets of £90,272,000 (31 March 2024: £80,472,000; 30 September 2024: £83,333,000) and Ordinary Shares, being the number of Ordinary Shares in issue excluding shares held in Treasury at the relevant period ends (31 March 2025: 11,796,902; 31 March 2024: 11,796,902; and year ended 30 September 2024: 11,796,902).

### 6. Fair Value of Investments

The fair value hierarchy analysis for financial instruments held at fair value at the period end is as follows:

| Financial assets at fair value through | Level 1 | Level 2 | Level 3 | Total  |
|----------------------------------------|---------|---------|---------|--------|
| profit or loss at 31 March 2025        | £'000   | £'000   | £'000   | £'000  |
| Equity investments                     | 86,455  | —       | —       | 86,455 |
| Financial assets at fair value through | Level 1 | Level 2 | Level 3 | Total  |
| profit or loss at 31 March 2024        | £'000   | £'000   | £'000   | £'000  |
| Equity investments                     | 78,018  | —       | —       | 78,018 |
| Financial assets at fair value through | Level 1 | Level 2 | Level 3 | Total  |
| profit or loss at 30 September 2024    | £'000   | £'000   | £'000   | £'000  |
| Equity investments                     | 80,082  | —       | —       | 80,082 |

The currency exposure is exposure of the currency values of the investee companies.

|             | Saudi Arabia | South Africa         | UAE    | Poland | Greece | Hungary | Turkey | Kuwait | Qatar | Czech Republic | United States | UK    | Russia | Total    |
|-------------|--------------|----------------------|--------|--------|--------|---------|--------|--------|-------|----------------|---------------|-------|--------|----------|
|             | SAR          | ZAR                  | AED    | PLN    | EUR    | HUF     | TRY    | KWD    | QAR   | CZK            | USD           | GBP   | RUB    | GBP      |
| 2025        | £'000        | £'000                | £'000  | £'000  | £'000  | £'000   | £'000  | £'000  | £'000 | £'000          | £'000         | £'000 | £'000  | £'000    |
| Cash        | —            | 18                   | —      | —      | 24     | —       | 7      | —      | —     | —              | 3,223         | 8     | —      | 3,280    |
| Debtor      | 50           | 6                    | 157    | —      | —      | 221     | —      | —      | —     | —              | —             | 473   | —      | 907      |
| Creditor    | —            | —                    | (229)  | —      | —      | —       | —      | —      | —     | —              | —             | (141) | —      | (370)    |
| Investments | 26,254       | 21,250               | 10,171 | 7,335  | 4,979  | 4,760   | 3,542  | 3,311  | 3,184 | 1,669          | —             | —     |        | — 86,455 |
| Total       |              | 26,304 21,274 10,099 |        | 7,335  | 5,003  | 4,981   | 3,549  | 3,311  | 3,184 | 1,669          | 3,223         | 340   |        | — 90,272 |

### 7. Related Party Disclosures and Transactions with the AIFM

Investment management fees charged in the period were £327,000 (six months to 31 March 2024: £284,000; year ended 30 September 2024: £592,000). At the end of the half year, there was an investment management fee of £57,000 outstanding (31 March 2024: £50,000; 30 September 2024: £50,000).

Fees paid to the Directors for the six months amounted to £74,000 (six months to 31 March 2024: £77,000; year ended 30 September 2024: £155,000).

Fees paid to the Company's Directors are disclosed in the Director's Remuneration Report within the Company's Annual Report and Accounts for 2024. At the period end, there were no outstanding fees payable to the Directors (year ended 30 September 2024: £nil).

# Glossary of Terms

### AIFM

The AIFM, or Alternative Investment Fund Manager, is Baring Fund Manager Limited, which manages the portfolio on behalf of the Company's shareholders. The AIFM has delegated the investment management of the portfolio to Baring Asset Management Limited (the "Investment Manager").

### Alternative performance measures (APM)

An APM is a numerical measure of the Company's current, historical or future financial performance, financial position or cash flows, other than a financial measure defined or specified in the applicable financial framework. In selecting these APMs, the Directors considered the key objectives and expectations of typical investors in an investment trust such as the Company.

### Benchmark

The Company's Benchmark is the MSCI Emerging Markets EMEA Index. This index is designed to measure the performance of large and midcap companies across 11 Emerging Markets (EM) countries in Europe, the Middle East and Africa (EMEA). This includes, Czech Republic, Egypt, Greece, Hungary, Kuwait, Poland, Qatar, Saudi Arabia, South Africa, Turkey and United Arab Emirates. With 147 constituents, the index covers approximately 85% of the free float-adjusted market capitalisation in each country. The Benchmark is an index against which the performance of the Company may be compared. This is an indicative performance measure as the overall investment objectives of the Company differ to the index and the investments of the Company are not aligned to this index.

Prior to 16 November 2020, the Benchmark was the MSCI EM Europe 10/40 Index.

#### Cumulative performance (APM)

The cumulative performance measures take account of the investment movement and income. The dividends distributed by the Company are deemed to be reinvested in the Company at the prevailing NAV or Share Price for the purpose of the calculation. The calculation for the year is set out in NAV Total Return and Share Price Total Return within the Glossary.

The cumulative performance shown in the graph on page 2 of the Annual Report and Accounts for 2024 demonstrates the performance over five years commencing from a base point of 100%. With capital growth and income plus dividends reinvested tracks the cumulative performance of NAV, Share Price and Benchmark over the five year period.

### Discount Control Mechanism

The Discount Control Mechanism relates to targets put in place to reflect shareholders' interest in controlling the discount of the Company's share price to its NAV and in satisfactory returns on the investment portfolio. With effect from 1 October 2020 the Board put in place a mechanism to provide shareholders with a tender offer for up to 25% of the Company's issued Ordinary Share capital if:

- (i) The average daily discount of the Company's market share capital to its net asset value ('cum-income') exceeds 12%, as calculated with reference to the trading of the Company's shares for the period between 1 October 2020 and 30 September 2025 (the "Calculation Period"); or
- (ii) The performance of the Company's net asset value on a total return basis does not exceed the return of the Company's benchmark by an average of 50 basis points per annum over the Calculation Period.

### Discount/Premium (APM)

If the share price is lower than the NAV per share, the shares are trading at a discount. The size of the discount is calculated by subtracting the share price of 652.5p (31 March 2024: 532.5p) from the NAV per share of 765.2p (31 March 2024: 682.1p) and is usually expressed as a percentage of the NAV per share, 14.7% (31 March 2024: 21.9%). If the share price is higher than the NAV per share, it is said to be trading at a premium.

### Dividend Pay-out Ratio (APM)

The ratio of the total amount of dividends paid out to shareholders relative to the net income of the company. Calculated by dividing the Dividends Paid by Net Income.

### Dividend Reinvested Basis

Applicable to the calculation of return, this calculates the return by taking any dividends generated over the relevant period and reinvesting the proceeds to purchase new shares and compound returns.

### Dividend Yield (APM)

The annual dividend expressed as a percentage of the current market price.

### DTR 4

Disclosure and Transparency Guidance Rule 4. Part of the FCA Handbook. This covers the responsibilities of Directors in the preparation and content of financial reports.

### EMEA

The definition of EMEA is a shorthand designation meaning Europe, the Middle East and Africa. The acronym is used by institutions and governments, as well as in marketing and business when referring to this region: it is a shorthand way of referencing the two continents (Africa and Europe) and the Middle Eastern sub-continent all at once.

### Emerging Markets

An emerging market economy is a developing nation that is becoming more engaged with global markets as it grows. Countries classified as emerging market economies are those with some, but not all, of the characteristics of a developed market.

### Environmental, Social and Governance ("ESG")

ESG (environmental, social and governance) is a term used in capital markets and used by investors to evaluate corporate behaviour and to determine the future financial performance of companies. The Company will evaluate investments in investee companies considering:

- environmental criteria considering how the company performs as a steward of nature;
- social criteria examine how the company manages relationships with employees, suppliers, customers, and communities; and
- governance deals with the company's leadership, executive pay, audits, internal controls, and shareholder rights.

#### Frontier Markets

A frontier market is a country that is more established than the least developed countries globally but still less established than the emerging markets because its economy is too small, carries too much inherent risk, or its markets are too illiquid to be considered an emerging market.

#### Gearing (APM)

Gearing refers to the ratio of the Company's debt to its equity capital. The Company may borrow money to invest in additional investments for its portfolio. If the Company assets grow, the shareholders' assets grow proportionately more because the debt remains the same. But if the value of the Company's assets fall, the situation is reversed. Gearing can therefore enhance performance in rising markets but can adversely impact performance in falling markets.

The Company currently does not have any bank loans.

For the purposes of AIFMD, the Company is required to disclose the leverage. Leverage is any method which increases the Company's exposure, including the borrowing of cash and use of derivatives. It is expressed as a ratio between the Company's exposure and its net asset value and is calculated under the Gross and Commitment Methods in accordance with AIFMD.

Under the Gross Method, exposure represents the aggregate of all the Company's exposures other than cash balances held in base currency and without any offsetting. Investments (A) divided by total shareholders' funds (B).

Gross method = 96% (A = £86,455,000 / B = £90,272,000) x 100

The Commitment Method takes into account hedging and other netting arrangements designed to limit risk, offsetting them against the underlying exposure. Investments (A) plus current assets (C) divided by total shareholders' funds (B).

Commitment method = 101% ( (A = £86,455,000) + (C = Cash £3,280,000 + Debtor £907,000) / B = £90,272,000) x 100

### Gross Assets

Total of all the Company's investments and current assets.

#### Idiosyncratic Risk

Idiosyncratic or "specific risk" is a risk that is particular to an individual asset, such as a company.

#### Net Assets

Net assets are the total value of all the Company's total assets less all liabilities. Net assets is equivalent to shareholders' funds.

#### Net Asset Value ("NAV")

The NAV is shareholders' funds expressed as an amount per individual Ordinary Share. Shareholders' funds are the total value of all the Company's assets, at current market value, having deducted all liabilities revalued for exchange rate movements. The total NAV per Ordinary Share is calculated by dividing the shareholders' funds of £83,333,000 by the number of Ordinary Shares in issue excluding treasury shares of 11,796,902.

#### Ongoing Charges Ratio (APM)

The Company's Ongoing Charges Ratio (OCR) is a measure of what it costs to cover the cost of running the Company. This consists of its expenses (excluding finance costs and certain non-recurring items) of £717,000 being investment management fees of £326,000 and other expenses of £396,000 less non-recurring expenses of £5,000 expressed as a percentage of the average net assets of £88,278,000 during the year as announced on the London Stock Exchange. The OCR for the period to 31 March 2025 is 1.6% (2024: 1.8%).

#### Relative Returns

Relative return is the difference between investment return and the return of a benchmark.

#### Repurchase of Ordinary Shares

The Company may repurchase its own shares, reducing the freely traded shares ranking for dividends and enhancing returns and earnings per Ordinary Share to the remaining shareholders. When the Company repurchases its shares, it does so at a total cost below the prevailing NAV per share. These shares may be cancelled or held in Treasury.

### Return on Equity (APM)

Return on equity ("ROE") is a measure of financial performance calculated by dividing net income by shareholders' equity. Because shareholders' equity is equal to a company's assets minus its debt, ROE could be thought of as the return on net assets. This measure is used to understand how effectively management is using a company's assets to create profits.

### Revenue and Capital Return per Ordinary Share (APM)

Revenue earnings per Ordinary Share is calculated by dividing revenue return for the period of £501,000 by the weighted average of Ordinary Shares (excluding shares in issue) during the period 11,796,902. Capital return per Ordinary Share is calculated by dividing capital return for the period of £7,913,000 by the weighted average of Ordinary Shares (excluding shares in issue) during the period 11,796,902.

The calculations are set out in note 3.

### Risk-adjusted Returns

Risk-adjusted return refines an investment's return by measuring how much risk is involved in producing that return.

### Share Price

The price of a single share of a company. The share price is the highest amount someone is willing to pay for the stock, or the lowest amount that it can be bought for.

### Systematic Risk

Systematic risk or "market risk" is the risk inherent to the entire market or market segment, not just a stock or industry.

### Total Assets

Total assets include investments, cash, current assets and all other assets. An asset is an economic resource, being anything tangible or intangible that can be owned or controlled to produce positive economic value.

### Total Return (APM)

Total return statistics enable the investor to make performance comparisons between investment trusts with different dividend policies. The total return measures the combined effect of any dividends paid, together with the rise or fall in the share price or NAV. This is calculated by the movement in the NAV or share price plus dividend income reinvested by the Company at the prevailing NAV or share price.

### NAV Total Return (APM)

NAV Total Return is calculated by assuming that dividends paid out are reinvested into the NAV on the ex-dividend date.

| 31 March 2025 |
|---------------|
| 765.22        |
| 12.50         |
| (0.72)        |
| 777.00        |
| 706.40        |
| 10.0%         |
|               |

### Share Price Total Return (APM)

Share price total return is calculated by assuming dividends paid out are reinvested into new shares on the ex-dividend date.

|                                                                         | 31 March 2025 |
|-------------------------------------------------------------------------|---------------|
| Closing share price (p)                                                 | 652.50        |
| Add back total dividends paid in the<br>six months to 31 March 2025 (p) | 12.50         |
| Benefits from reinvesting dividend (p)                                  | 1.00          |
| Adjusted closing share price (p)                                        | 666.00        |
| Opening share price (p)                                                 | 555.00        |
| Share price total return (%)                                            | 20.0%         |

### Treasury Shares

When a share is bought back it may be cancelled immediately or held (at zero value) as a Treasury Share. Shares that are held in treasury can be reissued for cash at minimal cost. The Company will only reissue shares from treasury at a price at or above the prevailing NAV per share. The shares are excluded from the Revenue and Capital return per Ordinary Share. These shares do not pay dividends, have no voting rights and are not included in a company's total issued share capital amount for calculating percentage ownership.

#### Weighted Average Shares (APM)

The weighted average shares outstanding is calculated by multiplying the outstanding number of shares after each share issue and buy back of shares during the year with the time weighted portion. The total of the weighted average of shares in issue excluding treasury shares during the year is 11,796,902.

# Directors and Officers

# Directors

Frances Daley, Chairman Alastair Bruce Vivien Gould Christopher Granville

### Registered Office

19th Floor 51 Lime Street London EC3M 7DQ

# Company Secretary

MUFG Corporate Governance Limited Central Square 29 Wellington Street Leeds LS1 4DL

# Company Number

04560726

# Alternative Investment Fund Manager

Baring Fund Managers Limited 20 Old Bailey London EC4M 7BF Telephone: 020 7628 6000 Facsimile: 020 7638 7928

# Auditor

BDO LLP 55 Baker Street Marylebone London W1U 7EU

# Depositary

State Street Trustees Limited 20 Churchill Place Canary Wharf London E14 5HJ

### Custodian

State Street Bank & Trust Company Limited 20 Churchill Place Canary Wharf London E14 5HJ

### Administrator

Waystone Administration Solutions (UK) Limited Broadwalk House Southernhay Exeter EX14 1TS

### Registrar

MUFG Corporate Markets Central Square 29 Wellington Street Leeds LS1 4DL

# Corporate Broker

JP Morgan Cazenove 25 Bank Street Floor 29 Canary Wharf London E14 5JP

Website [www.bemoplc.com](http://www.bemoplc.com)

![](_page_27_Picture_26.jpeg)

# Shareholder Information

# Company Number

04560726

# ISIN

GB0032273343

### LEI

213800HLE2UOSVAP2Y69

### SEDOL

3227334

### Share Dealing

Shares can be traded through your usual stockbroker.

### Share Register Enquiries

The register for the Ordinary Shares is maintained by Link Group. In the event of queries regarding your holding, please contact the Registrar on 0371 664 0300 or on +44 (0)371 664 0300, UK Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open between 09:00 - 17:30, Monday to Friday excluding public holidays in England and Wales. You can also contact the Registrar by email at [shareholderenquiries@cm.mpms.mufg.com.](mailto:shareholderenquiries@cm.mpms.mufg.com)

Changes of name and/or address must be notified in writing to the Registrar: MUFG Corporate Markets, Central Square, 29 Wellington Street, Leeds LS1 4DL.

### Electronic Communications from the Company

Shareholders now have the opportunity to be notified by email when the Company's Annual Report and other formal communications are available on the Company's website, instead of receiving printed copies by post. This has environmental benefits in the reduction of paper, printing, energy and water usage, as well as reducing costs to the Company. If you have not already elected to receive electronic communications from the Company and wish to do so, please contact the Registrar using the details shown above. Please have your investor code to hand.

If you hold shares via a nominee, it is the responsibility of the nominee to provide you with copies of the Annual Report and any other documentation.

# NAV Information

The Company releases its NAV per share daily to the LSE.

### Share Price

The Company's shares are listed on the LSE.

### Annual and Half Year Reports

Copies of the Annual and Half Year Reports are available on the Company's website, [www.bemoplc.com,](http://www.bemoplc.com) or from the Company Secretary on telephone number: 0333 300 1932.

### Financial Calendar

|                                 | Date*         |
|---------------------------------|---------------|
| Announcement of interim results | June 2025     |
| Interim dividend                | July 2025     |
| Announcement of final results   | December 2025 |
| Annual General Meeting          | January 2026  |
| Payment of final dividend       | February 2026 |

\* These dates are provisional and subject to change.

# Blank page

![](_page_31_Picture_0.jpeg)

#### Baring Fund Managers Limited

20 Old Bailey London EC4M 7BF Telephone: 020 7628 6000

(Authorised and regulated by the Financial Conduct Authority)

# [www.barings.com](http://www.barings.com)

ISIN GB0032273343 Registered in England and Wales no: 02915887 Registered office as above.