Barings Emerging EMEA Opportunities : Half Year Report

Half Year Report

for the six months ended 31 March 2024

Barings Emerging EMEA Opportunities PLC

2	Barings Emerging EMEA Opportunities PLC
Half Year Report 2024
Finding quality companies

from Emerging Europe, the Middle East and Africa

Barings Emerging EMEA Opportunities PLC ("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. Alternatively, you

can buy shares 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.

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.

For more information please visit our website: www.bemoplc.com

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 and clicking on 'Register for email updates', or by scanning the QR code below. We will do the rest.

Barings Emerging EMEA Opportunities PLC	1
Half Year Report 2024

Contents

COMPANY SUMMARY

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 philosophy and management of the Investment Portfolio can be found on pages 8 to 13.

MANAGEMENT FEE

The AIFM receives an investment management fee of 0.75% 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.

INVESTMENT OBJECTIVE AND POLICY

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 intends predominantly to invest 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.

Further details of the investment objective and policy can be found on pages 6 and 7.

BENCHMARK

The Company's comparator benchmark is the MSCI Emerging Markets EMEA Index (net dividends reinvested) (the "Benchmark").

The Benchmark is considered to be most representative of the Company's investment mandate, which covers Emerging Europe, the Middle East and Africa. The Investment Manager is not limited or constrained by the constituents

of the comparator benchmark and may invest in any companies it considers appropriate in accordance with the investment mandate.

Financial Highlights	2
Chairman's Statement	3-5
Business Model and Strategy	6-7
Report of the Investment Manager	8-12
Investment Portfolio	13-15
Income Statement	16
Statement of Financial Position	17
Statement of Changes in Equity	18
Notes to the Financial Statements	19-21
Interim Management Report
Going Concern	22
Principal Risks and Uncertainties	22
Related Party Transactions	22
Directors' Responsibility Statement	23
Glossary of Terms	24-26
Corporate Information
Directors and Officers	27
Shareholder Information	28

2	Barings Emerging EMEA Opportunities PLC
Half Year Report 2024

Financial Highlights

for the six month period to 31 March 2024

KEY PERFORMANCE INDICATORS
NAV total return⁜1,#	Share price total return⁜1,#	Dividend per Ordinary Share⁜1,#
13.2%	12.8%	6.0p
(31 March 2023: -2.1%)	(31 March 2023: -5.0%)	(31 March 2023: 6.0p)

FINANCIAL HIGHLIGHTS

	31 March 2024	31 March 2023	30 September 2023
NAV per Ordinary Share⁜1	682.1p	607.8p	617.6p
Share price	532.5p	509.0p	483.0p
Share price total return⁜1,*,#	12.8%	-5.0%	-8.8%
Discount to NAV per Ordinary Share⁜1	21.9%	16.3%	21.8%
Benchmark⁜1,*	5.8%	-5.5%	-3.4%
Dividend yield⁜1,2,3	3.2%	3.3%	3.5%
Ongoing charges⁜1	1.8%	1.6%	1.6%

RETURN PER ORDINARY SHARE

		31 March 2024		31 March 2023		30 September 2023
	Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
Return per Ordinary Share	5.54p	69.89p	75.43p	6.71p	(20.78)p	(14.07)p	14.59p	(13.16)p	1.43p

Revenue return (earnings) per Ordinary Share is based on the revenue return of £653,000 (31 March 2023: £805,000; and the full year

to 30 September 2023: £1,726,000). Capital return per Ordinary Share for the half year is based on a net capital gain of £8,245,000

(31 March 2023: net capital loss of £2,492,000; and full year to 30 September 2023: net capital loss of £1,557,000). These calculations

are based on the weighted average of 11,796,902 (31 March 2023: 11,991,821; and 30 September 2023: 11,829,676) Ordinary Shares in issue during the period/year.

As at 31 March 2024, there were 11,796,902 Ordinary Shares of 10 pence each in issue (31 March 2023: 11,807,563; and 30 September

2023: 11,796,902) which excludes 3,318,207 Ordinary Shares held in treasury (31 March 2023: 3,318,207; and 30 September 2023: 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 2024, the Company has bought back nil shares for cancellation.

1 Alternative Performance Measures ("APMs") definitions can be found in the Glossary on pages 24 to 26.

2The 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.

3The yield as of 31 March 2023 is comprised of the 2022 final dividend of 11 pence per share and the interim dividend for the six months to 31 March 2023 of 6 pence per share, based on the share price as at 31 March 2023.

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

Barings Emerging EMEA Opportunities PLC	3
Half Year Report 2024

Chairman's Statement

Frances Daley

Chairman

Performance

After the turmoil of the past two years, it is a pleasure to be able to report positive results for the six months to 31 March 2024, both in absolute terms and relative to the benchmark. The EMEA equity markets ("EM EMEA") in which BEMO invests registered a gain of 5.8% over the period, following markets globally, which were led higher in anticipation of a peak in interest rates combined with continued economic growth.

Against this backdrop, we are pleased to report a significant gain in the Company's Net Asset Value ("NAV"), which registered a total return of 13.2%, outperforming the benchmark, and broader emerging markets.

The Board are encouraged that performance continues to improve post the write- down of Russian assets, with the portfolio ahead of the benchmark over six months, one year and two years. Regrettably, performance over three and five years continues to be impacted by the negative relative performance in the 2022 financial year, with the Company lagging the benchmark across both periods. However, the returns remained ahead of the benchmark over seven and ten years.

Investment Portfolio

The strong performance within the portfolio serves to highlight the distinctive opportunities which the universe of EM EMEA has to offer.

Emerging Europe continued to reflect the continent's improving economic prospects against an environment of falling energy prices and growing disposable income. Poland and Greece returned 38% and 16.3% respectively, lifting returns in BEMO's European region to 5.8%. The Company's holdings in Emerging Europe were the strongest drivers of both absolute and relative returns, reflecting the importance of our holdings in the financial sector that serves as a good proxy for our markets and offers exposure to growing consumer demand.

Turkey offered a tale of two halves over the period. During the fourth quarter of 2023, the market declined before rapidly rebounding in 2024 as market participants' risk perceptions eased with the country's return to orthodox economic policies. This is a view shared by the Investment Manager and, as a result, the portfolio delivered a positive absolute return in a market which registered a small absolute decline.

The performance of markets in the Middle East was more mixed. The region's largest market, Saudi Arabia, outperformed the broader region, with BEMO's portfolio benefitting from its investments in companies that are actively contributing to the diversification of the Saudi economy away from hydrocarbons. In contrast, Qatar and the UAE posted negative returns, reflecting the lower levels of market liquidity and depth of available investment opportunities.

Whilst absolute returns in South Africa lagged broader EM EMEA returns, the Investment Manager's stock selections generated relative outperformance in this market. This result was achieved by avoiding companies vulnerable to the ongoing disruption to energy supply locally, and focusing investments in quality companies better equipped to navigate the uncertain environment.

Russian assets in the portfolio continue to be valued at zero whilst extensive sanctions and restrictions on the sale of securities remain in place. The Board, however, remains focused on how shareholder value can be best preserved, created and realised in relation

4	Barings Emerging EMEA Opportunities PLC
Half Year Report 2024

Chairman's Statement

(continued)

to the holdings of Russian assets. A welcome development over the period was the ability of the Investment Manager to take advantage of opportunities to exit three companies, namely Magnit, X5 and TCS, thereby releasing approximately £2.3m of value back into the Company. While these are positive developments, the Board will continue to value the remaining assets at zero until circumstances permit otherwise. Consequently, there is no exposure to Russia in the Company's NAV, and management fees are not being charged on these assets.

Discount Management

The discount at 31 March 2024 was 21.9% and the average discount during the period was 21.8%. This compares with a discount of 16.3% at the 31 March 2023.

The Board remains focused on discount management, with the aim of containing the discount. However, whilst share buybacks continue to be an option available to 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.

Gearing

There were no borrowings during the period. At 31 March 2024, there was net cash of £1.9 million (30 September 2023: £3.9 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, the portfolio generated an income return of 5.5 pence per Ordinary Share, compared with

6.7 pence for the same period last year. The Directors are proposing an interim dividend of 6 pence per share, which maintains the dividend at the same level as last year by utilising revenue reserves.

Based on dividends paid over the prior 12 months and the share price as at 31 March 2024, the Company's shares yielded 3.2%. The Board believes that this remains an attractive yield. The Investment Manager continues to believe the income potential of the portfolio will grow over the medium term and that this growth will be sustainable. The Board retains the flexibility to pay out up to 1% per annum of NAV from capital as income to Shareholders.

Outlook

Looking ahead, global equity markets are likely to continue to be driven by news flows surrounding the potential decline of inflation and a loosening of monetary policy by US and western central banks. Although the oil price rebound in recent months may limit central banks' scope to reduce interest rates, equity markets should continue to benefit from broadly robust and uninterrupted growth, allaying widespread concern that monetary policy designed to bring down inflation might also lead to stagnation or even recession.

While the global outlook remains uncertain, we are beginning to see an increasingly constructive view within emerging markets, as the monetary policy tightening cycle turns ahead of developed markets. Meanwhile the absolute valuation of EM equities, and the relative valuation versus developed equities, appears attractive, suggesting investor expectations for the asset class remain overly depressed.

This creates the potential for increasing interest in the asset class in general and EMEA markets in particular.

In this connection, we already see an improving economic picture across a number of countries in the portfolio. Within Emerging Europe, financials continue to represent a significant portion of the portfolio, and the Investment Manager is positive on the prospects for the sector. In addition, Emerging Europe is also buoyed by strong growth in real household income, which has reached its highest level relative to developed Europe. Against this backdrop, the Investment Manager sees opportunities in residential real estate and broadening discretionary consumption as consumers benefit from this stronger buying power.

Turning to the Middle East, economies continue to benefit from low inflation, healthy consumption growth and high capital investment. A particularly strong performer as regards investment is Saudi Arabia, which is channelling the revenue derived from its oil sector back into other areas of its economy, spurring domestic demand and increasing the relative contribution of non-oil sectors to the economy's overall performance. On this basis, the Investment Manager continues to identify exciting opportunities for medium term growth across a number of sectors.

Barings Emerging EMEA Opportunities PLC	5
Half Year Report 2024

Chairman's Statement

(continued)

South Africa, by contrast, has continued to face more challenging economic conditions with the problems of the country's electricity supply persisting amid a rising political risk in the run-up to the imminent national elections. While remaining on the alert for positive opportunities post-elections, the Investment Manager continues to remain selective, focusing on companies with business models and high quality management that mitigate risks posed by economic uncertainties.

Director appointment

The Board was delighted to welcome Alastair Bruce as a Non-Executive Director of the Company and Chair of the Audit Committee on 1 February 2024. Alastair has substantial Board experience of investment trusts and is already proving to be a valuable member of the Board.

Promotional activity and keeping shareholders informed

The Board and Investment Manager have in place an ongoing communications programme that seeks to maintain the Company's profile and its investment remit, particularly amongst retail investors. Over 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 and views plus 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 2024

6	Barings Emerging EMEA Opportunities PLC
Half Year Report 2024

Business Model and Strategy

Barings Emerging EMEA Opportunities PLC

• Focusing on the markets of Emerging Europe, the Middle East and Africa, the Company seeks out attractively valued, quality companies across this diverse and fast-changing region.
• Large investment region underrepresented in global portfolios, with a portfolio that aims to deliver both attractive levels of income and capital growth over the long term.
• Managed by one of the region's most experienced investment teams with a consistent track record of delivering relative outperformance.
• A differentiated and innovative investment process driven by fundamental bottom-up analysis - with a strong focus on environmental, social and governance factors.

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 philosophy, the Investment Manager takes a bottom-up approach, founded on research carried out using the Investment Manager's own internal resources. This research enables the Investment Manager to identify what it believes to be the most attractive stocks in EMEA markets. Further information can be found on pages 20 to 22 of the Annual Report and Accounts for the year ended 30 September 2023.

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 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).

Purpose, Values and Strategy

To achieve this investment objective, the Board uses its breadth of skills, experience and knowledge to oversee and work with the Investment Manager, to ensure that it has the appropriate capability, resources and controls in place to actively manage the Company's assets to meet its investment objective. The Board also select and engage reputable and competent organisations to provide other services on behalf of the Company.

The Company's values focus on transparency, clarity and constructive challenge. The Directors recognise the importance of sustaining a culture that contributes to achieving the purpose of the Company that is consistent with its values and strategy.

Benchmark

The Company's comparator Benchmark is the MSCI Emerging Markets EMEA Index (net dividends reinvested).

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

Barings Emerging EMEA Opportunities PLC	7
Half Year Report 2024

Business Model and Strategy

(continued)

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).

Relative guidelines will be based on the MSCI (net dividends received), which will be the index used as the comparator benchmark.

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 the discretion to operate with an overall exposure of the portfolio to the market of between 90% and 110%, including 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.

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:

1. 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
2. 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, and in order to reduce the discount, the Board authorises the Company's shares to be bought on the market, from time to time, where the share price is quoted at a discount to NAV.

8	Barings Emerging EMEA Opportunities PLC
Half Year Report 2024

Report of the Investment Manager

Our strategy seeks to diversify your portfolio by harnessing the long term growth and income potential of Emerging EMEA. The portfolio is managed by our team of experienced investment professionals, with a repeatable process that also integrates Environmental, Social and Governance ("ESG") criteria.

Our strategy

Access

Experienced investment team helps to foster strong relationships with the companies in which

we invest.

First-hand Expertise

The investment team conducts hundreds of company meetings per year, building long term relationships

and insight.

Process

Extensive primary research and proprietary fundamental analysis, evaluating companies over a 5-year research horizon with macro considerations incorporated through our Cost of Equity approach.

ESG Integration

Fully integrated dynamic ESG assessment combined with active engagement to positively influence ESG practices.

A detailed description of the investment process, particularly the ESG approach can be found on pages 18 and 19 of the Annual Report and Accounts for the year ended 30 September 2023.

Market Summary (All numbers quoted in GBP)

Over the period EMEA equities were stronger, along with most equity markets globally. Markets rose in anticipation that the US Federal Reserve would cut interest rates in 2024, earlier than previously expected. A combination of falling inflation and weaker economic data reinforced the belief that policymakers had passed the peak of the tightening cycle, prompting a rally in risk assets, notably in the latter stages of Q4 2023. Against this backdrop, the Company's NAV increased by 13.2%, significantly outperforming the MSCI EM EMEA benchmark which rose by 5.8%.

Emerging Europe

Markets within Emerging Europe were some of the best performers over the period, continuing the trend of outperformance during 2023. Poland returned 38.0%, as equity markets responded positively to Donald Tusk's Civic Platform-led government, with its more constructive approach towards both internal and external affairs. Elsewhere in the region, Greece returned 16.3%, supported by news that its sovereign risk rating had been upgraded to investment grade status. The Turkey story was mixed. The market's negative return of -2.9% reflected the Lira's weakness, but there was an upturn in Q1 2024 amid improved risk perceptions on the back of the country's return to

orthodox economic policies. This gave support to the Lira, and boosted the performance of the banking sector.

South Africa

South African equities ended the period largely flat, returning 1.4%, reflecting the ongoing electricity supply crisis which plagued the economy in 2023. We are, however, seeing tentative signs of improvements, allowing for a more constructive outlook for domestic consumption to rebound and support the economy.

Middle East

The performance of markets in the Middle East was mixed. The region's largest market, Saudi Arabia, returned 10.1%, whilst Qatar and the UAE posted negative returns of -2.5% and -6.1% respectively. Egypt was the weakest market in the region, down -16.8%, reflecting a devaluation in the currency that was required as part of a deal with the International Monetary Fund ("IMF"). The region's major markets are strongly influenced by the oil price, which drifted lower in Q4 2023 in response to concerns of a slowing global economy before rebounding, as such concerns eased, despite fears of wider conflicts in the Middle East which have the potential to disrupt oil supply.