Barings Emerging EMEA Opportunities PLC
Half Year Report for the six months ended 31 March 2025
The Directors are pleased to present the Half-Year Financial Report of the Company for the six months ended 31 March 2025.
Barings Emerging EMEA Opportunities PLC (LSE: BEMO) is pleased to declare an interim dividend of
6 pence per Ordinary Share
in respect of the financial period ending 31 March 2025.
The dividend will be paid on 25 July 2025 to shareholders on the register as at 20 June 2025. The ex-dividend date is 19 June 2025, and the DRIP election date is also 20 June 2025.
Further details can be found in the Chairman’s Statement below.
Financial Highlights
NAV total return1,# Share price total return1,# Dividend per Ordinary
Share1,#
10.0% 20.0% 6.0p
(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%
______________________________________________________________________________
|Return |31 March 2025 |31 March 2024 |30 September 2024 |
|per |______________________|______________________|_______________________|
|Ordinary|Revenue|Capital|Total |Revenue|Capital|Total |Revenue|Capital|Total |
|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 as set out in the full report.
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
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 terms
1
.
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 terms
1
). 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.
1
Indices based on relevant MSCI Regional Indices
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 BENCHMARKS
1
Investment/Benchmark Performance (%)
BEMO PLC 10.0%
MSCI EM EMEA 7.8%
AIC Global Emerging Markets Sector Average 3.7%
Developed Markets 1.9%
Emerging Markets -1.6%
1Indices 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 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 its investment remit, particularly among retail investors. During the 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
Report of the Investment Manager
EMEA MARKET PERFORMANCE AND CURRENCY RETURNS – 1 OCTOBER 2024 TO 31 MARCH 2025
1
__________________________________________
|Market Returns (%, ||Currency Returns (%,|
|GBP) ||GBP) |
|____________________||____________________|
|Czech Republic|35.0%||Czech Republic|1.6% |
|______________|_____||______________|_____|
|Poland |20.7%||Poland |2.9% |
|______________|_____||______________|_____|
|Greece |20.4%||Greece |0.6% |
|______________|_____||______________|_____|
|Hungary |19.9%||Hungary |-0.8%|
|______________|_____||______________|_____|
|Kuwait |17.1%||Kuwait |2.5% |
|______________|_____||______________|_____|
|UAE |17.0%||UAE |3.5% |
|______________|_____||______________|_____|
|Saudi Arabia |4.0% ||Saudi Arabia |3.5% |
|______________|_____||______________|_____|
|South Africa |4.0% ||South Africa |-2.3%|
|______________|_____||______________|_____|
|Qatar |2.6% ||Qatar |3.3% |
|______________|_____||______________|_____|
|Egypt |-0.6%||Egypt |-1.2%|
|______________|_____||______________|_____|
|Turkey |-8.4%||Turkey |-6.7%|
|______________|_____||______________|_____|
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 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 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.
Asset Allocation
Portfolio Country Portfolio Sector Weight
Weight
Saudi Arabia 30.4% Financials 49.9%
South Africa 24.6% Materials 15.6%
UAE 11.8% Communication Services 7.7%
Poland 8.5% Energy 5.5%
Greece 5.8% Consumer Staples 5.2%
Hungary 5.5% Information Technology 4.9%
Turkey 4.1% Real Estate 4.0%
Kuwait 3.8% Health Care 3.8%
Qatar 3.7% Consumer Discretionary 2.3%
Czech Republic 1.9% Industrials 1.1%
Source: BEMO PLC. 31 March 2025.
Source: BEMO PLC. 31 March 2025.
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.
Baring Asset Management Limited
Investment Manager
6 June 2025
Detailed Information
Barings Emerging EMEA Opportunities PLC's Half Year Report for the period ended 31 March 2025 is available at
https://www.barings.com/en-gb/investment-trust/the-trust/financial-statements
It has also been submitted in full unedited text to the Financial Conduct Authority's National Storage Mechanism and is available for inspection at data.fca.org.uk/#/nsm/nationalstoragemechanism in accordance with DTR 6.3.5(1A) of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
For any enquiries please contact:
Quill PR
+44 (0)20 7466 5050
Sarah Gibbons-Cook
About Barings Emerging EMEA Opportunities PLC
"Finding quality companies from Emerging Europe, the Middle East and Africa."
Barings Emerging EMEA Opportunities PLC (the "Company") is a UK based investment trust that was launched on 18 December 2002 and is managed by Baring Fund Managers Limited.
In November 2020, the Company broadened its investment policy to focus on growth and income from quality companies in the Emerging Europe, Middle East and Africa ("EMEA") region. It also changed its name from Baring Emerging Europe PLC to Barings Emerging EMEA Opportunities PLC at the same time.
For more information, and to sign up for regular updates, please visit the Company’s website:
www.bemoplc.com
LEI: 213800HLE2UOSVAP2Y69
