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?

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.

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:

https://www.bemoplc.com

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

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.

Warsaw, Poland

COUNTRY SPOTLIGHT #2

BARINGS EMERGING EMEA OPPORTUNITIES PLC Istanbul, Turkey

Turkey

The prospect of greater financial and political stability, combined with a young, consumption-focused population and an enterprising economy, is strengthening Turkey's appeal to international investors. Please read on for your two-minute guide to this key market in Emerging EMEA.…

Why we like it: TURKEY IN NUMBERS

Population:2

new era of fiscal prudence and transparency and a focus on attracting foreign 85M

direct investment.

Global ranking by GDP:3

costs, and strong tourism. 17th

2022 2023F 2024F

electioneering: a positive backdrop for monetary and fiscal policy aiming to Core inflation 57% 57% 47%

win back investor confidence and bring down inflation.

Source: OECD Economic Outlook, January 2024. F=forecast.

accelerated economic growth.1 ECONOMIC PROFILE

Services 51.7%

Key themes:

FALLING RISK PREMIUM: Turkey's increasingly investor-friendly and balanced policies will, over time, continue to drive down the country's risk premium, attracting investment and supporting stock market performance.

GROWTH POTENTIAL: A young and entrepreneurially-minded population provides the backdrop for an economy brimming with potential in almost all sectors, making Turkey a strong target for foreign direct investment.

1

Industry 31.3%

Other 10.4%

Agriculture 6.5%

Source: Statista/Worldbank, 2022.

1 Source: United Nations, as of June 2023.

2 World Bank - https://www.worldbank.org/en/ country/turkey/overview

3 World Bank - https://www.worldbank.org/en/ country/turkey/overview

COUNTRY SPOTLIGHT #1

Be in the know: receive the latest BEMO News

ong domestic

Please read on for

NUMBERS2

as a % of EU:

ranking by GDP:

ce: OECD Economic Outlook, October 2023. F=forecast.

ECONOMIC PROFILE

Services 57.4%

Industry 40.2%

Agriculture 2.4%

2022 2023F 2024F

growth (GDP) 5.4% 0.9% 2.1%

Core inflation 9.0% 10.2% 4.9%

COUNTRY SPOTLIGHT #3

BARINGS EMERGING EMEA OPPORTUNITIES PLC

Cape Town, South Africa

The possibility of a cooperative ANC that's prepared to push through reforms with coalition partners,

improving operational prospects for the mining sector, and a growing array of financially disciplined

corporate players could make South Africa a compelling investment prospect once more. Please read on

for your two-minute guide to this key market in Emerging EMEA…

Population:1

growing range of companies with strong management and compelling

earnings in sectors including finance, consumer discretionary and materials. Global ranking by GDP:2

reforms and capital investment that South Africa desperately needs.

2022 2023F 2024F

from a trough in the price of the commodity basked and improving operations. Economic growth (GDP) 6.8% 5.3% 5.8%

Inflation (CPI) 6.9% 5.9% 5.0%

disciplined and cashflow-focused mining industry.

further support the economic recovery.

South Africa

Why we like it:

SOUTH AFRICA IN NUMBERS

Poland

Why we like it: POLAND IN

38M

8.2%

22nd

Key themes:

Sour

BARINGS EMERGING EMEA OPPORTUNITIES PLC

Amid geopolitical tensions, Poland's relatively young and skilled workforce and str

consumption should hold its economy in good stead as inflationary pressures recede.

your two-minute guide to this key market in Emerging EMEA…

Population:

central European countries.

attracted ever-more sophisticated business services to the country, allured

by the pool of skilled labour, while benefitting from the strong regulatory

protection afforded by the EU.

growth - a rarity in Europe.

Global

expected to recover to 2.1% in 2024, boosted by EU funds1.

NEARSHORING: As companies relocate production closer to their target markets,

Poland is a target destination thanks to skilled labour, EU regulatory alignment and

faster end-delivery times.

SOLID DEMOGRAPHICS: A rarity in the region, Poland has a young and growing

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

Source: Bloomberg, as of October 2023.

POLITICAL CHANGE: The popularity of the ruling ANC party continues to decline

ahead of the parliamentary elections on 29 May 2024. This creates the possibility

of the party losing its majority for the first time in recent history, leading to the

prospect of a coalition government.

INFRASTRUCTURE CRISIS: 2023's electricity rationing was emblematic of

South Africa's deep infrastructure disintegration across energy, rail and other

sectors. The government's incapacity to drive reform is leading to private-sector Zuma party founded in December emerges

as third-biggest4

solutions that, for example, have led to electricity supply improving dramatically

in private and corporate sectors. This also serves to highlight the importance, and

opportunity, of investing in the private sector in South Africa, which is actively

improving the country's resilience.

Given the political uncertainty and ongoing economic challenges, investors need

to continue to be selective in equity holdings in South Africa. We maintain a focus

on well-managed companies in a position to capitalise on an improving macro-

economic picture, which should also support domestically-oriented companies.

1

Source: OECD Data.3 F=forecast nominal GDP growth rate.

ECONOMIC PROFILE

Services 62.3%

Industry 24.7%

Other 10.2%

Agriculture 2.8%

Key themes:

Source:Statista, 2022.

CHANGING POLITICAL LANDSCAPE

Nov. '22

ANC Oct. '23

Feb. '24

44%

41%

39%

DA Oct. '23 23%

Nov. '22 23%

Feb. '24 27%

In short:

MKP Feb. '24 13%

1 Source: South Africa Census, 2022.

2 Source: World Data, 2022.

3 Source: OECD.

4 Source: Brenthurst Foundation, SABI Strategy Group.

In short:

1 Poland projection note OECD Economic Outlook June 2023 by OECD - Issuu

2 Sources: CIA World Factbook/IMF

workforce - helped by an influx of more than 1.5 million refugees from the

Ukraine.

For these reasons, Poland is one of the most attractive destinations for foreign

direct investment globally.

While Poland's proximity to the Ukrainian conflict has cast a shadow over the

unique attractions of the country, we believe investors will ultimately refocus on

the opportunities which exist in companies that are exposed to a range of secular

growth trends-in particular, its unique service-based economy which benefits

from solid demographics and nearshoring tailwinds.

1

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Financial Highlights

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

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.

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

12

10.0%

10

8

6

4

2

0

-2

-4

BEMO PLC

MSCI EM EMEA

AIC Global Emerging Markets Sector Average

Developed Markets

-1.6%

Emerging Markets

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

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.

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

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 trade-induced 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

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 third-party 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 equity-related 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 closed-ended 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:

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

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

40

35

30

25

20

15

10

5

0

-5

10

15

35.0

Market Returns (%, GBP) Currency Returns (%, GBP)

20.7

20.4

19.9

17.1

17.0

1.6

3.5

4.0 3.5

4.0

2.6

3.3

-0.8

-2.3

-0.6-1.2

-8.4

-6.7

0.6

2.9

2.5

-

-

Czech Republic

Poland

Greece

Hungary

Kuwait

UAE

Saudi Arabia

South Africa

Qatar

Egypt

Turkey

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

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.

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

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 (%) PORTFOLIO SECTOR WEIGHT (%)

35%

30%

25%

30.4%

60%

50%

40%

15.6%

7.7% 5.5% 5.2% 4.9%

4.0% 3.8% 2.3%

1.1%

49.9%

20%

15%

30%

10%

5%

20%

10%

24.6%

11.8%

8.5%

5.8% 5.5%

4.1% 3.8% 3.7%

1.9%

Saudi Arabia

South Africa

UAE

Poland

Greece

Hungary

Turkey

Kuwait

Qatar

Czech Republic

Financials

Materials

Energy

Con. Staples

Real Estate

Health Care

Industrials

0% 0%

Comm. Services

Info. Technology

Con. Discretionary

Source: BEMO PLC. 31 March 2025.

Source: BEMO PLC. 31 March 2025.

monetary policy by appointing the well-respected 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

Naspers Limited

3

Capitec

4

FirstRand

5

Gold Fields

6

OTP Bank

7

National Bank of Kuwait

8

The Saudi National Bank

9

Qatar National Bank

10

Saudi Telecom

Headquarters Sector Market value % of net assets Total £34,898,000, 38.65% of net assets

Investment Portfolio

at 31 March 2025

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..

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:

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

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