Annual Report

& Audited

Financial

Statements

for the year ended 30 September 2022

Barings Emerging EMEA

Opportunities PLC

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Finding quality companies

from Emerging Europe, the

Middle East and Africa

The Company was launched on 18December

2002 as Baring Emerging Europe PLC. As of

16November 2021, the Company was renamed

Barings Emerging EMEA Opportunities PLC

(“BEMO”).

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.

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

Annual Report 2022

STRATEGIC REPORT

Financial Highlights 2

Five Year Financial Record 3

Chairman’s Statement 4-6

Business Model and Strategy 7-8

Principal and Emerging Risks 9-11

Investment Manager 12

Report of the Investment Manager 13-23

Investment Portfolio 24-26

Corporate Review 27-31

GOVERNANCE

Board of Directors 32-33

Report of the Directors 34-38

Statement of Corporate Governance 39-48

Management Engagement Committee Report 49-50

Nomination Committee Report 51-52

Audit Committee Report 53-57

Directors’ Remuneration Report 58-62

Statement of Directors’ Responsibilities 63

Independent Auditor’s Report 64-69

FINANCIAL STATEMENTS

Income Statement 70

Statement of Financial Position 71

Statement of Changes in Equity 72

Notes to the Financial Statements 73-86

OTHER INFORMATION

AIFMD Disclosures 87-88

Glossary 89-91

Directors and Officers 92

Shareholder Information 93

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 12 to 23.

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 current investment objective and policy can

befound on pages 7 and 8.

BENCHMARK

The Company’s comparator benchmark is the MSCI

Emerging Markets EMEA Index (net dividends reinvested)

(the“Benchmark”).

This 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.

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Financial Highlights

for the year ended 30 September 2022

Annualised NAV total return

1,#

Share price total return

1,#

Dividend per Ordinary Share

1,#

-29.9% -29.1% 17p

2021: +36.6% 2021:+39.7% 2021: 26p

For the year ended 30 September 2022 2021 % change

NAV per Ordinary Share

632.1p 920.7p -31.3%

Share price 548.0p 793.0p -30.9%

Share price total return

1,#

-29.1% +39.7%

Benchmark (annualised)

-20.1% +33.3%

Discount to NAV per Ordinary Share

13.3% 13.9%

Dividend yield

1,2

3.1% 3.3%

Ongoing charges

1.6% 1.6%

Year ended 30 September 2022 Year ended 30 September 2021

Revenue Capital Total Revenue Capital Total

Return per Ordinary Share 16.77p (289.37)p (272.60)p 23.86p 225.16p 249.02p

Revenue return (earnings) per Ordinary Share is based on the revenue return for the year of £2,014,000 (2021: £2,912,000). Capital return

per Ordinary Share is based on net capital loss for the financial year of £34,746,000 (2021: gain £27,476,000). These calculations are based

on the weighted average of 12,007,165 (2021: 12,202,696) Ordinary Shares in issue, excluding treasury shares, during the year.

At 30 September 2022, there were 11,930,201 (2021: 12,044,780) Ordinary Shares of 10 pence each in issue which excludes 3,318,207

(2021: 3,318,207) Ordinary Shares held in treasury. The shares held in treasury are not included when calculating the weighted average of

Ordinary Shares in issue during the year. All shares repurchased during the year have been or are being cancelled.

CUMULATIVE PERFORMANCE (%)

Source: Barings, Factset. Rebased to 100 at 30 September 2017.

Alternative Performance Measures (“APMs”) definitions can be found in the Glossary on pages 89 to 91.

% based on dividend declared for the full financial year and share price at the end of each financial year.

Key Performance Indicator.

*The benchmark is the MSCI EM EMEA Net Index. Prior to 16 November 2020, it was the MSCI EM Europe 10/40 Net Index.

BEMO NAV Total Return Share Price Total Return Benchmark*

30/9/2017 30/9/2018 30/9/2019 30/9/2020 30/9/2021

30/9/2022

70%

80%

90%

100%

110%

120%

130%

140%

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Five Year Financial Record

At 30 September 2022 2021 2020 2019 2018

Shareholders’ funds £75m £111m £85m £116m £108m

NAV per Ordinary Share 632.1p 920.7p 694.7p 930.8p 824.8p

Share price 548.0p 793.0p 587.0p 846.0p 714.0p

ROLLING ANNUALISED PERFORMANCE (%) ANNUAL PERFORMANCE (%)

NAV Total Return Share Price Total Return Benchmark Total Return

Source: Barings, Factset.

SHARE PRICE DISCOUNT TO NAV OVER FIVE YEARS

Source: Barings, Factset.

Discount Average

Sep-17

Dec-17

Mar-18

Jun-18

Sep-18

Dec-18

Mar-19

Jun-19

Sep-19

Dec-19

Mar-20

Jun-20

Sep-20

Dec-20

Mar-21

Jun-21

Sep-21

Dec-21

Mar-22

Jun-22

Sep-22

30%

25%

20%

15%

10%

Average 12.6%

3 years 5 years

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

-9.4

-3.1

-10.5

-3.0

-6.2

-0.6

-40.0

-30.0

-20.0

-10.0

10.0

20.0

30.0

40.0

2018 2019 2020 2021 2022

17.8

36.6

24.3

39.7

1.6

15.9

33.3

-2.6

-22.3

-29.9

-4.0

-27.5

-29.1

-22.6

-20.1

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

After the strong performance in the prior financial year, it is incredibly disappointing to report a significant decline in the Company’s net

asset value (NAV) over the period.

This year proved to be extremely volatile. Russia’s invasion of Ukraine prompted significant selling across our investment region and

equity markets globally. Emerging EMEA equities then suffered amidst the broader macroeconomic headwinds of sharply higher

inflation and fears of a global economic slowdown.

Against this backdrop, the Company’s net asset value fell significantly, and the portfolio underperformed the benchmark. This result

was largely attributable to our investments in Russian securities, which were written down to zero following exchange closures and

sanctions. This took place in two phases and reflected the evolving situation at the time. Russian securities listed on the Moscow

Exchange were valued at zero as of the 28th February following restrictions of sales; whilst depositary receipts and U.S. listed

Russian stocks were valued at zero on the 2nd March, after they had been suspended from trading. As of the date of this report, these

exceptional circumstances have not changed and, as a result, the Board has taken the decision to continue valuing these assets at zero.

Consequently, there is no exposure to Russia in the Company’s net asset value and Management fees are not being charged on these

assets. Further information of the Company’s Russian holdings can be found on page 26.

Whilst the write-down of Russian securities in the portfolio had a large negative impact on net asset value, the Company benefitted from

the broadening of the investment mandate that was approved by Shareholders in November 2020. The successful diversification into

markets such as South Africa and the Middle East reduced exposure to Russia significantly.

Performance

The NAV total return over the year was -29.9% compared to the Benchmark return of -20.1%. For comparison, broader emerging

markets were also markedly weaker over the period, declining -13.2%

. This illustrates the wider-ranging impact of global headwinds

such as high inflation and economic growth slowdown.

The Company’s investments in Russia were responsible for the vast majority of the absolute decline in net asset value. Strong returns

elsewhere in the investment universe, particularly in the Middle East, meant that the portfolio excluding Russia would have registered a

small positive return over the year. Whilst the portfolio had an overweight allocation to Russia before the invasion on 24 February 2022,

this had been reduced during January and February. However, the impact on the portfolio was nevertheless significant, with Russian

exposures accounting for approximately 6.5% of relative underperformance over the period.

Chairman’s Statement

Frances Daley

Chairman

This year proved to be extremely

volatile. Russia’s invasion of Ukraine

prompted significant selling across

equity markets globally. Emerging

EMEA equities also suffered amidst

the broader macroeconomic

headwinds of sharply higher

inflation and fears of a global

economic slowdown.

As defined by the MSCI Emerging Markets index, in GBP terms.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Another factor in the underperformance against the Benchmark was our underweight allocation to energy stocks, a strategic decision

made at the time of the 2020 change of mandate, for environmental reasons. This was driven primarily by not owning Saudi Aramco, as

the shares rallied sharply against a backdrop of high oil prices.

In contrast, it is pleasing to report that some of the Company’s investments in the newer markets of the Middle East were some of

the best performers in absolute terms, not only in EMEA but across equity markets globally. On a relative basis, some of the strongest

performers were Middle Eastern Banks, which rallied against a backdrop of rising interest rates and an improving economic picture.

This benefitted the Company’s holdings in Qatar National Bank, Saudi National Bank and Al Rajhi. Despite this, the Financials sector had

a negative impact on relative performance in aggregate, primarily due to the write down of two Russian holdings but also because of

the outperformance of a small number of other companies in the sector, which are not held in the portfolio.

The portfolio’s relative underperformance over the last year has had a significant impact on three and five year performance numbers,

with the Company lagging the benchmark across both periods. The longer-term performance of the Company however, has been good,

generating a cumulative NAV total return of 52.9% over 7 years and 13.6% over 10 years, both of which are ahead of thebenchmark.

Environmental, Social and Governance

The Investment Manager continues to incorporate Environmental, Social and Governance (“ESG”) parameters as a key element of the

investment process and company analysis, to reflect improving or deteriorating corporate standards that may influence a company’s

value. This approach enables the Investment Manager to uncover potential unrecognised investment opportunities, whilst also mitigating

risks. The Investment Manager also undertakes active engagement to influence positively ESG practices and improve ESG disclosures.

During the year, the Investment Manager began a process to enhance their ESG approach by incorporating a Carbon Cost assessment

for companies within the investment universe. This enhancement seeks to quantify potential risks and costs associated with high

carbon-emitting companies, such as those most exposed to carbon emissions trading systems (ETS) and other carbon taxes. By

including this additional risk, the Investment Manager believes they are better positioned to value companies more accurately and

deliver excess returns over the medium term.

The Board shares the Investment Manager’s view that ESG factors are among some of the most important variables that can impact

an investment’s risks and returns over time. Further detail on the Investment Manager’s ESG process, including the Carbon Cost

assessment, can be found in the Investment Manager's Report.

Discount Management

The Board continues to pursue an active discount management strategy, with the aim of containing discount volatility and providing

liquidity to the market. During the year, 114,579 Ordinary Shares were bought back at an average price of £6.24 per Ordinary Share,

for a total cost of £715,000. All Ordinary Shares repurchased during the year have been or are being cancelled. The impact of share

buybacks through purchasing shares at a discount to NAV provided additional returns to shareholders of approximately 1.0 pence per

Ordinary Share accounting for just under 0.2% of the total return toShareholders.

The discount at year-end was 13.3% and the average discount during the year was 15.3%. At the end of the prior financial year the

discount was 13.9% and the average during that year 13.1%. The average discount over the period has widened, primarily due to

increased levels of market volatility across our investment universe and equity markets globally. This has impacted discounts for many

investment trusts and is not unique to our Company.

Whilst share buybacks continue to be a useful tool in helping to manage the discount, they are significantly less effective during periods

of elevated market volatility, as has been the case in recent months. The Barings Equity Dealing team discuss the management of the

discount with the Company’s corporate broker JP Morgan on a daily basis with the aim of containing the discount over the five-year

calculation period, which ends in September 2025.

Gearing

There were no borrowings during the period. At 30 September 2022, there was net cash of £0.2 million (30 September 2021: £1.7million).

The Company does not currently use a loan facility but keeps its borrowing arrangements under review. The Company may look to make

use of borrowing arrangements when markets are less volatile with the objective of increasing portfolio returns.

Chairman’s Statement

(continued)

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Dividends

The income generated by the portfolio has been severely impacted by the absence of Russian dividends. This will affect the dividend

that the Company can pay to Shareholders in the near term. However, the Investment Manager believes the income potential of the

portfolio will grow sustainably over the medium term, in line with the earnings growth of the underlying companies in which we invest.

In respect of the six-month period ended 31 March 2022, the Company paid an interim dividend of 6 pence per share (2021: 15 pence

per share). For the year under review, the Board recommends a final dividend of 11 pence per share (2021: 11 pence per share). As

communicated in the half-yearly report, the Board of Directors took a conscious decision to pay a lower interim dividend, with a view to

paying a higher proportion of the annual dividend via the final dividend. Paying a greater amount of income via the final dividend allows

the Company increased certainty in managing the pay-out of dividend cashflow from investee companies at a time when income

projections are subject to considerable volatility.

Promotional Activity and Keeping Shareholders Informed

The Board and Investment Manager have put 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, and mindful that this has been a testing

time for investors, we have focused attention on our monthly BEMO News which is emailed to subscribers comprising many hundreds

of the Company’s existing Shareholders, as well as other supporters. These email updates provide relevant news and views plus

performance updates, which are particularly useful when markets are challenging. 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’. Alongside this, we are continuing to refresh the Company’s website with new themed content. We have also been

reviewing the layout of the site and resulting enhancements will be rolled out over the coming months.

Annual General Meeting

The Board would be delighted to meet Shareholders at the Company’s Annual General Meeting (“AGM”), to be held at the offices of the

Investment Manager, 20 Old Bailey, London EC4M 7BF, on Thursday, 26 January 2023 at 2.30pm. The Investment Manager will give

their customary presentation on the markets and the outlook for the year ahead. Details can be found in the Notice of the AGM.

Outlook

Equity markets are likely to continue to be volatile over the coming months, as investors pay attention to economic growth data and any

signs that inflation may be peaking, whilst central banks remain steadfast in raising rates, even as the global economy slows. Whilst our

investment region will undoubtedly be impacted by these global trends, there are reasons to be positive.

High energy prices have significantly strengthened the fiscal backdrop across Middle Eastern economies. Many of these countries

are now forecast to experience strong economic growth whilst at the same time benefitting from low inflation, a combination that is

extremely rare in the current climate. Approximately 57% of the Company’s portfolio is invested in the Middle East and the Investment

Manager continues to find many attractive opportunities across this region.

Similarly, there are a number of exciting stock specific opportunities in South Africa, particularly amongst companies with a role to play

in the energy transition as we move towards a greener planet. Inflationary pressures are less severe in the region than in many other

parts of the world, and the monetary policy backdrop is stable.

The outlook in Eastern Europe is understandably less rosy, given the proximity of the region to the ongoing conflict. At the time

of writing, the portfolio is underweight to this region relative to the benchmark. Stock market valuations are largely reflecting a

deterioration in investor sentiment, which, over the medium term, may provide good opportunities for our Investment Manager.

These factors should help contribute to the increasing attractiveness of emerging EMEA equities, whilst the Company’s diversified

portfolio is well placed to continue to deliver attractive returns for our Shareholders.

These are tough times in which to be a fund manager and I should like to pay tribute to the cool headed professionalism with which the

Barings team have steered the portfolio over the year.

Frances Daley

Chairman

7 December 2022

Chairman’s Statement

(continued)

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Business Model and Strategy

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 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 20 to 23.

The Company’s Investment Objective and Policy was changed

on 13 November 2020, following approval from Shareholders in a

general meeting.

Purpose, Values and Strategy

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. To achieve this, 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. Further

detail on culture can be found on page 30.

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).

Relative guidelines will be based on the Morgan Stanley Capital

International “MSCI” Emerging Markets EMEA Index (net), which will

be the index used as the 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 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.

Business Model and Strategy

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Business Model and Strategy

(continued)

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 polices of the Company.

Benchmark

The Company’s comparator Benchmark is the MSCI Emerging

Markets EMEA Index (net dividends reinvested). Prior to

16November 2020, the Benchmark was the MSCI EM Europe

10/40 Index (net dividends reinvested).

Discount Control Mechanism

The Board is aware of Shareholders’ continued desire for a strong

discount control mechanism, though also mindful of the need

to provide the Company the opportunity to achieve its goal of

outperforming its Benchmark.

With effect from 1 October 2020, the Board approved a tender offer

trigger mechanism to provide Shareholders with a tender offer for

up to 25% of the Company’s issued Ordinary Share capital if:

(i) the average daily discount of the Company’s market share

capital to its net asset value (‘cum-income’) exceeds 12%, as

calculated with reference to the trading of the Company’s

shares over the period between 1 October 2020 and

30September 2025; or

(ii) the performance of the Company’s net asset value per share

on a total return basis does not exceed the return of the

Company’s benchmark 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 manage 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.

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.

• 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.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

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

a robust assessment of both the emerging and principal risks facing the Company, together with a review of any evolving risks which

may have arisen during the year, including those risks which would threaten the Company’s business model, future performance,

solvency or liquidity. These risks are formalised within the Company’s risk matrix.

The Audit Committee regularly (on a six-monthly basis) review the risks facing the Company by maintaining a detailed record of the

identified risks against an assessment of the likelihood of such risks occurring and the severity of the potential impact of such risks. A

residual risk rating is then calculated for each risk based on the outcome of the assessment. This enables the Board to take action and

develop strategies in order to mitigate the effect of such risks to the extent possible. An analysis of financial risks can be found in note 13

to the Financial Statements on pages 82 to 85.

Information about the Company’s internal control and risk management procedures can be found in the Audit Committee Report on

pages 53 to 57. The principal financial risks and the Company’s policies for managing these risks and the policy and practice with regard

to financial instruments are summarised in note 14 to the Financial Statements.

The principal risks and uncertainties faced by the Company during the financial year, together with the potential effects, controls and

mitigating factors, are set out in the following table. The Audit Committee will continue to assess these risks on an ongoing basis.

Risk Mitigation

Investment strategy

There can be no guarantee that the

investment objective will be achieved.

The Investment Manager has a clear investment strategy, as set out on pages 13 to

23, which is regularly reviewed by the Board. The Investment Manager has in place

a dedicated investment process which is designed to maximise the chances of the

investment objective being achieved. The Board reviews regular investment reports

from the Investment Manager to monitor performance against its stated objective

and regularly reviews the strategy. All of the Company’s investments are listed on

recognised stock exchanges and the liquidity of individual investments is monitored

by the Investment Manager and the Board.

Adverse market conditions

Emerging markets are subject to volatile

geopolitical and socioeconomic

movements as well as the possible

imposition of sanctions.

The Company is closed-end and, unlike open-ended funds, does not have to sell

investments at low valuations in volatile markets.

It can be argued that the most effective method of protecting the Company from

the effects of country specific or individual stock risks is to hold a geographically

diversified portfolio. As at the date of this report, the Company holds 59 stocks in

11 countries and the AIFM has the ability, where necessary, to diversify the portfolio

into other regions. The AIFM has a clear investment strategy as set out on pages 13

to 23. Whilst recognising there will be periods when this strategy underperforms

the Benchmark and peer group, the Board monitors performance at each Board

meeting and reviews the investment process throughout the year.

The Investment Manager’s own internal compliance functions provide robust checks

that the Investment Manager complies with the investment mandate.

The Board recognises the benefits of a closed-end fund structure in extremely

volatile markets, such as those arising from macroeconomic conditions or

geopolitical tensions. The Company's investments are also exposed to political and

regulatory risk in the countries in which they operate. They may also be impacted

by sanctions or exchange controls. Unlike open ended funds, closed-ended funds

are not obliged to sell-down portfolio holdings at potentially low valuations to

meet liquidity requirements for redemptions. During times of elevated volatility

and market stress, the ability of a closed-end fund structure to remain invested

for the long term enables the Investment Manager to adhere to the investment

management approach and be ready to respond to dislocations in the market as

opportunities present themselves.

Principal and Emerging Risks

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Principal and Emerging Risks

(continued)

Risk Mitigation

Size of the Company

The size of the Company could become

sub optimal as share buybacks reduce

the Company’s market capitalisation.

The Investment Manager discusses and agrees with the Board prior to making any

buybacks of the Company’s shares within the agreed parameters. The Investment

Manager and Corporate Broker are in regular contact with major Shareholders and

report their views to the Board on a regular basis.

Share price volatility and liquidity/

marketability risk

The shares of the Company are traded

freely and are therefore subject to the

influences of supply and demand and

investors’ perception to the markets the

Company invests in. The share price is

therefore subject to fluctuations and

like all investment trusts may trade at a

discount to the NAV. Market shocks, such

as those caused by macroeconomic

conditions, geopolitical tensions or

sanctions, can have a negative impact on

the share price.

The Board seeks to narrow the discount by undertaking measured buybacks of the

Company’s shares. The Company and Investment Manager work with the Corporate

Broker to seek to increase demand for the Company’s shares.

The Board remains committed to an increased focus on dividend yield to further

enhance the appeal of investing in the Company and increase demand for its shares.

The Board has also put in place a comprehensive range of promotional plans to

support existing Shareholders and attract new investors.

In addition, as set out on page 8, the Company has performance triggers in place,

which may provide Shareholders with the opportunity to realise their investment in

the Company at NAV less costs, should the Company not meet targets relating to

average discount or performance over a five year period.

Loss of assets

The portfolio includes investments held

in a number of jurisdictions and there is a

risk of a loss of assets.

The Investment Manager and Administrator have systems in place for executing

and settling transactions and for ensuring assets are safe. In addition, the Company

uses an internationally recognised Custodian and sub Custodians and receives

regular reports of assets held, which the Administrator reconciles. The operation of

the Custodian is overseen and reviewed by the Depositary which reports regularly

to theBoard.

Engagement of third-party

service providers

The Company outsources all of its

operations to third parties and is

therefore reliant on those third parties

maintaining robust controls to prevent

the Company suffering financial loss

or reputation as damage. Further, the

emergence of health pandemics, such

as COVID-19, may have an impact on the

operational robustness of third-party

service providers and their ability to

conduct business as usual.

The Company operates through a series of contractual relationships with its

service providers. In the instance an epidemic and/or pandemic develops

internationally, the Investment Manager is able to take proactive steps to address

the potential impacts on their people, clients, communities and on other

stakeholders they come in contact with, directly or through their premises. This

includes suspending all international business and domestic travel. Further, the

Investment Manager has performed stress-testing on systems and processes,

and is able to operate under a 100% remote working model globally without a

degradation in their responsibilities.

The Board reviews the performance of all service providers both in Board meetings

and in the Management Engagement Committee meeting, where the terms on

which the service providers are engaged are also reviewed.

The Audit Committee also receives internal controls reports from key service

providers. The Board assesses whether relevant controls have been operating

effectively throughout the period.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Principal and Emerging Risks

(continued)

The Board has considered and discussed a number of emerging and developing risks including the following:

•

The ongoing impact of the war in Ukraine and the continued effect of sanctions. The valuation of Russian securities, the decline in the

Company’s size and the potential for the conflict to impact on other countries.

• The potential impacts on the Company from a slowing global economy, rising interest rates and higher inflation.

•

The impact of climate change, which remains a critical issue as the world seeks to reduce greenhouse gas emissions and combat

global warming. The Board spent time over the year discussing with the Investment Manager its ESG framework, including a recent

enhancement that aims to quantify potential risks and costs associated with high carbon-emitting companies. Further detail can be

found in the Investment Manger’s Report.

The Audit Committee routinely reviews the principal risks and makes the required updates to the Company’s risk matrix as appropriate.

This approach allows the effect of any mitigating factors to be reflected in the assessment of the risk.

The risk register and the operation of the key controls of the Company’s third-party service providers’ systems of internal control are

reviewed regularly by the Audit Committee.

Emerging risks are considered by the Board as they come into view. The immediate significance will be evaluated and the potential

implications integrated into the existing review of the Company’s risk matrix.

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Management Arrangements and Fees

Baring Fund Managers Limited acts as the AIFM of the Company under an agreement, terminable

by either party giving not less than six months written notice. During the year under review, and

under this agreement, the AIFM received a fee calculated monthly and payable at an annual rate of

0.75% of the NAV of the Company, together with any applicable VAT thereon and any out of pocket

expenses incurred by the AIFM.

There is no performance fee for the AIFM.

The AIFM has delegated the investment management of the portfolio to Baring Asset Management

Limited (the “Investment Manager”).

Details of the Investment Manager

The Investment Manager has a team of fund managers who are responsible for the management

of the investment portfolio. Matthias Siller, Head of Europe, Middle East and Africa EMEA at the

Investment Manager, is the lead manager with Adnan El-Araby, as co-manager. Matthias and

Adnan are supported by the wider EMEA Equity Team. In total, the EMEA Equity Team consists

of six investment professionals, four of which have responsibilities for researching stocks. The

other team members are involved in investment decision making and have broader management

oversight. The EMEA Equity Team forms part of the broader Emerging Market Equities Platform,

with investment professionals based in London, Hong Kong, Singapore, Shanghai and Taipei. The

team also draws further support from the rest of the broader equity platform at the Investment

Manager, especially the knowledge, expertise and coverage of the three global sector teams:

Healthcare, Resources and Technology.

Matthias joined the Investment Manager in 2006 and was appointed Head of EMEA Equities Team

in 2016. He began his career in fund management at Raiffeisen Zentralbank Austria in 1997 as a

Market Maker/Proprietary Trader in Central & Eastern European Equities and Derivatives. He joined

Bawag — PSK Invest as an EMEA equity portfolio manager in 2001 and moved to Raiffeisen Capital

Management in 2003, where he was a portfolio manager for Central & Eastern European Equities.

Matthias has a Masters degree from Vienna University in Economics & Business Administration.

Matthias was awarded the CFA designation in 2006 and his native language is German.

Adnan is an Investment Manager in the EMEA Equity Team. He is responsible for the Resource

Sector, Healthcare & Pharmaceuticals, Tech & Media and Autos within the EMEA region. Adnan

joined Barings in 2010 from Legg Mason Capital Management, where he was also an investment

analyst. He holds a Bachelor of Commerce degree from St. Mary’s University, Canada and was

awarded the CFA designation in 2006. Adnan's native language is Arabic.

Investment Manager

MATTHIAS SILLER, CFA

Head of EMEA Equities Team

ADNAN EL-ARABY, CFA

Investment Manager

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Report of the Investment Manager

Market Summary

The year began with a sense of optimism, buoyed by hopes of rising global growth and corporate profits, in anticipation of

further relaxations of COVID restrictions globally. This enthusiasm proved to be short lived as global markets worldwide declined

significantly in response to Russian President Vladimir Putin’s invasion of Ukraine. Investors also faced broader headwinds in the form

of persistently high inflation and fears of a slowing global economy as major central banks look to tighten financial conditions.

Against an extremely volatile backdrop, the Company’s NAV declined by -29.9% and underperformed the benchmark, which fell by

-20.1%. The portfolio’s holdings in Russia accounted for approximately 6.5% of relative underperformance over theperiod.

Within this environment, commodity prices, and particularly oil and gas, rose sharply following the invasion. This was a direct result

of reduced access to Russian and Ukrainian supplies and was further exacerbated by sanctions. This elevation of energy costs

has further increased inflationary pressures and has contributed to the decisions by central banks to raise interest rates, even as

consumer and business confidence has weakened. In turn, many investors have flocked to more traditional “safe haven” assets,

including the US Dollar, with the US Dollar index now trading at a 20-year high against a basket of major currencies. This has pushed

the value of a number of dollar pegged currencies higher, whilst across Emerging Europe, currency depreciation against the dollar

has reflected the domestic inflation picture, and sensitivity to rising energy costs.

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Currency Returns (vs GBP) – 1 October 2021 to 30 September 2022

20.6% 20.6% 20.6%

20.5%

17.4%

5.1%

2.1%

0.4%

-50%

-40%

-30%

-20%

-10%

10%

20%

30%

Kuwaiti

Dinar

Egyptian

Pound

Hungarian

Forint

South

African

Rand

Czech

Koruna

Qatari

Rial

Saudi

Riyal

United Arab

Emirates

Dirham

U.S.

Dollar

Euro Polish

Zloty

Turkish

Lira

-3.1%

-3.2%

-13.3%

-42.0%

Source: Barings, Factset, MSCI, September 2022.

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.

A detailed description of the investment process, particularly the ESG approach can be found on pages 21 to 23.

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.

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Report of the Investment Manager

(continued)

Company, Benchmark Returns (left hand side) and Country Returns (right hand side) –

1 October 2021 to 30 September 2022, in GBP

-35%

-30%

-25%

-20%

-15%

-10%

-5%

-120%

-100%

-80%

-60%

-40%

-20%

20%

40%

60%

Qatar

Kuwait

U.A.E.

Turkey

Saudi Arabia

Czechia

South Africa

Greece

Egypt

Poland

Hungary

Russia

-29.1%

-29.9%

-20.1%

Company

Share Price

Total Return

Company

NAV

Total Return

Benchmark

36.2%

28.6%

26.9%

25.4%

23.0%

8.9%

-2.4%

-9.6%

-14.0%

-41.9%

-44.8%

-100.0%

Source: Barings, Factset, MSCI, September 2022.

More broadly, these developments have prompted a marked

deterioration in investor confidence and, as a result, share price

volatility has increased across equity markets globally. However,

in contrast with this widespread loss of confidence, rising oil

and gas prices have supported companies whose share prices

and profitability are linked to these commodities. Consequently,

companies in the Energy sector outperformed significantly

(excluding Russia). The Company’s exposure to energy exporters,

such as Saudi Arabia, the United Arab Emirates (“UAE”) and Qatar

generated positive returns for the Company. We would highlight

that these benefits derived less from direct investments in energy

companies than exposure to the resulting economies and the

improved spending power of their underlying consumers.

Conversely, markets across Eastern Europe underperformed by

the largest margins, as investors increasingly focused on energy

security concerns, due to their proximity to the conflict inUkraine.

Elsewhere, a rising interest rate environment globally has served

to tighten financial conditions, offering mixed results. Markets

have reacted not only to the absolute increase in rates, but

also to the speed of change. As a result, discretionary spending

orientated sectors have suffered, as consumers felt the effects

of both higher inflation and borrowing costs, which has affected

spending habits. Financials, such as banks, have fared better

as the margins they charge on lending increases as rates rise,

enhancing profitability.

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.

Our inability to receive dividends from Russian holdings has

led to the loss of a number of large dividend payers, resulting

in the prospect of a lower level of dividend generation

compared to levels seen in the past five years. In addition,

the current climate has led to companies holding higher

levels of cash, whilst also focusing on potential merger and

acquisition opportunities. Despite this, we are of the opinion

that the underlying revenue generation potential relative

to present valuations within the region remains one of the

strongestglobally.

This wealth of potential, should in our view, express itself via

the revenue growth of the portfolio over the medium term.

Rising pay-out ratios, efficiency gains, and an encouraging

economic environment, most notably in the Middle East, will all

contribute positively.Importantly, we believe that the revenue

generated from our investments will be sustainable and growing,

as it will be delivered from our Growth at a Reasonable Price

orientatedportfolio.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Report of the Investment Manager

(continued)

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

12M – Market Performance (GBP) – 1 October

2021 to 30 September 2022

Developed

Markets

Emerging

Markets

EMEA

EM Latin

America

Asia

Europe

-100

-80

-60

-40

-20

-2.9%

-13.2%

-20.1%

-77.5%

21.1%

-14.9%

Source: Barings, Factset, MSCI, September 2022.

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 effects of declines in performance from

major macro dislocations.

Energy Security

Following the events in Ukraine, oil and gas prices have seen

significant volatility, with oil rising as high as $120 a barrel

before falling back below $100. This has served to push energy

security up the agenda, most notably in Europe, which received

approximately 40% of its piped natural gas imports from Russia

prior to the conflict. This situation has created both areas of

concern and opportunity. Eastern European nations reliant on

this energy supply are now subject to price pressures in the

near term, and face a supply enigma over the medium term

as global supply lines are redrawn. We believe this will lead to

governments meaningfully reducing their exposure to Russian

energy, replacing this supply via significant investment into

renewable infrastructure.

Supplying the Green Revolution

Climate change and the need to transition toward a world less

dependent on fossil fuels remains one of the most critical issues

of our time. While we continue to see an increased demand for

electric vehicles and the associated charging infrastructure as

the most tangible examples of shifting consumption patterns,

what is often overlooked are the commodities required to

support this move to a greener society. Furthermore, a lack

of investment in supply has led to growing imbalances within

critical commodities such as copper, nickel, platinum group

metals (PGMs) and aluminium, all of which are projected to

hit supply deficits following declines in inventory levels. This

is especially relevant given the amount of steel required for an

offshore wind farm, which is roughly four to five times greater

than that required by an onshore facility with the same gigawatt

generation capacity. Electric vehicles are another example,

requiring significantly more copper relative to a standard internal

Platinum group metals (PGMs) – Hydrogen Power

Whilst Electric Vehicles (EVs) remain a practical

solution for the passenger auto industry to

decarbonise, larger, more commercial vehicles,

such as trucks, require greater power to support

the weight of the vehicle and the distances they

travel. This makes hydrogen fuel cells critical to this

important piece of the net zero emissionspuzzle.

What role do PGM’s play in Hydrogen Fuel cells?

Fuel cell systems are a clean, efficient, reliable

source of power, and do not need to be

periodically recharged like batteries, but instead

continue to produce electricity as long as a fuel

source is provided.

These fuel cells are composed of an anode,

cathode, and an electrolyte membrane (which

is often platinum-based). In this mix, a platinum

membrane is a model catalyst, conducting

electricity, and crucially, ensuring the cell

remains stable. The membrane also ensures the

cell remains hardy enough to survive the harsh,

acidicenvironment.

Report of the Investment Manager

(continued)

combustion engine vehicle. We believe this creates a unique

prospect for these commodities, as the increase in investment is

set not only to benefit the volume of exports of these metals, but

also sustain high prices as the world wrestles with limited supply.

A renewed vigour and focus on renewable energy infrastructure

offers a wealth of benefits for global commodity producers.

South Africa finds itself in a unique position as an enabler of the

energy transition via its access to a broad range of key metals.

Currently, the Company has investments in Anglo American,

which is an industry champion in the production of nickel, a

key input in the production of electric batteries, as well as other

energy transition metals such as copper. We also hold Impala

Platinum, which supplies platinum and palladium to carmakers

globally to support the production of catalytic converters, which

help reduce poisonous emissions from vehicles, whilst also

acting as a key component within hydrogen power cells.

Middle East – Emergent Economies

Markets across the Middle East have been some of the strongest

performers globally this year, as they have benefitted both

from high energy prices and the continued reopening of their

economies to the world. This has seen their representation

in major indices rise, whilst a burgeoning IPO market is

broadening the investment opportunity and deepening local

capital markets. The region also benefits from a strong fiscal

outlook, low single digit inflation, and a reform agenda, all

of which should boost consumer confidence and increase

the appeal of its investment case. Furthermore, demand for

their exports should not only improve the spending power of

its consumers, but also allow for continued investment into

infrastructure and diversification of their economies away from

oil, helping support long termstability.

Your Company’s largest market Saudi Arabia is centre stage

of these developments. Saudi’s “Vision 2030” program, has

set out an ambitious agenda to reduce dependence on oil,

and diversify its economy. This reform framework is creating

a number of exciting opportunities in the privatisation of state

assets, alongside a growing domestic base of entrepreneurial

companies. More specifically, government initiatives such as

“Sakani”, that offers subsidised mortgages for first time buyers

to own their first home, and the “Wafi” off-plan sales and rent

programme, have driven the demand for affordable homes and

have played a key role in facilitating home ownership for Saudi

nationals. This has opened unique opportunities within the

banking sector for instance, where mortgages have accelerated.

The Company has examples of investments in financials such

as Al Rajhi Bank, which has seen extensive growth in interest

margins from rapidly rising property ownership in Saudi Arabia as

its economy diversifies, and Tawuniya, an insurer well placed to

benefit from the growing health insurance market.

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.

Across the Middle East, we have found a number of companies,

most notably within financials, which offer attractive

fundamentals operating in economies benefitting from higher

energy prices and lower inflation. In the UAE, real estate

company Emaar Properties contributed significantly to relative

performance following consistently solid earnings, and an

increase in profit margins, which have been supported by the

easing of COVID restrictions and a resumption of economic

activity. Elsewhere across the region, Qatar National Bank

performed well, with quarterly results pointing to a significant

increase in net interest margins.

What is Vision 2030?

Saudi Vision 2030 is a strategic framework

to reduce Saudi Arabia’s dependence on oil,

diversify its economy, and develop public service

sectors such as health, education, infrastructure,

recreation, and tourism.

Why is diversification so important?

Oil revenue accounts for 30-40% of the real GDP

of Saudi Arabia, not including the proportion

of the economy that is also dependent on oil

distribution. By diversifying its economy, Saudi

Arabia is investing to develop alternative sources of

revenue, and aims to lower the dependency of the

country’s citizens on the government, in favour of

the private sector.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Report of the Investment Manager

(continued)

one of the stronger performers earlier in the year, boasting a

consumer base who rely almost exclusively on mobile devices,

backed by solid growth in voice, data and fintech services.

However, in the near term, the share price has given back

some gains as investors weighed macro concerns in some of

the company’s bigger markets, such as Nigeria and Ghana,

alongside currency weakness. Multinational technology investor

Naspers detracted from relative performance, as its largest

holding Tencent was impacted by broader weakness across

the technology sector and uncertainty regarding the outlook

for the Chinese economy. Despite the headwinds, we believe

the regulatory risk surrounding the Chinese technology sector

may have peaked. This can be seen in renewed game approvals

by the local regulator, a key component of growth within

Tencent’sbusiness.

Stock selection opportunities across Emerging Europe remained

challenging in light of the reduction of gas supplies to Europe,

and the associated energy price inflation. In Hungary, equity

markets moved lower in response to broad based tax and

tariff increases designed to fund the country’s increasingly

burdensome social transfers. This included windfall taxes on

the banking sector which negatively impacted our investment

in OTP. Similarly in Poland, insurance group PZU and bank PKO

were weak as a result of headwinds facing the Polish banking

sector in light of government imposed populist measures,

including a windfall tax on the sector more broadly, alongside a

one-year moratorium on mortgage payments.

In Saudi Arabia, not owning Saudi Aramco negatively impacted

relative performance as the shares outperformed against a

backdrop of stubbornly high oil prices. However, we continue to

prefer other compelling investment opportunities in the country,

most notably within the banking sector, where mortgage

issuances have accelerated. Examples of company specific

opportunities include our investments in banks Al Rajhi and

Saudi National Bank, which have some of the highest market

shares of mortgage loans in the sector, accounting for more than

50% combined. We are also invested in local exchange Tadawul,

which is benefitting from the broadening and deepening of the

country’s capital markets as well as increased participation of

international investors, whilst diversification into other asset

classes has also provided further growth potential.

Across South Africa, performance was mixed in light of an

often-volatile commodity, currency and macro environment.

Diversified miner Anglo American was one such example,

with the company’s share price experiencing both a period of

protracted appreciation as commodity prices rose, and then a

period of depreciation as a weakening economic environment

dragged near-term commodity price outlooks lower. Despite

volatility in the share price, we continue to believe over the

medium term the company will benefit from being a major

producer of platinum which, in our view, has a significant role

to play in the energy transition via its use in hydrogen-powered

fuel cell electric vehicles, as well as in the production of green

hydrogen via electrolysis. Similarly, telecoms group MTN was

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Source: Barings. September 2022.

Portfolio Sector Weight (%)

50.9%

15.0%

9.9%

8.2%

4.8%

4.2%

3.6%

2.2%

0.9%

0.2%

Financials

Materials

Comm. Services

Consumer Disc.

Real Estate

Industrials

Consumer Staples

Energy

Information

Technology

Utilities

Source: Barings. September 2022.

Portfolio Country Weight (%)

33.5%

27.4%

11.0%

9.2%

5.4%

3.6%

3.1%

2.1%

1.5%

Saudi Arabia

South Africa

U.A.E.

Qatar

Poland

Hungary

Turkey

Kuwait

Greece

Czechia

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Report of the Investment Manager

(continued)

Turkish ecommerce market. There were however pockets of

good stock selection, with local conglomerate Koc’s diversified

asset base and exposure to a number of export businesses

driving solid earnings, and offering some resilience amidst

a tougher economic backdrop. In Greece, our investment

in National Bank of Greece was a significant contributor to

returns, as the company produced strong core operating

profits alongside cost reductions. Whilst historically the

Greek banking sector has faced challenges, National Bank of

Greece now operates with a strong capital base and a level

of non-performing loans (NPL’s) comparable to banks in

developedEurope.

Exposure to Russian securities accounted for a significant

amount of underperformance over the period, as Russia’s

invasion of Ukraine created considerable market volatility and

led to exchange closures and sanctions. As already mentioned,

this resulted in the Company valuing all Russian assets at zero as

of the 2nd March. As a result, our positions in internet company

Yandex, supermarket retailers Magnit and X5, financials Sberbank

and TCS, and energy and materials exposures Lukoil and Norilsk

Nickel were amongst the portfolio’s most significant detractors

to performance over the period.

Outlook

In the short term, markets are likely to remain uncertain as

investors closely monitor developments in Ukraine, inflation, and

the broader global economic outlook. Looking ahead however,

we believe there are a number of compelling opportunities

across the emerging markets of Europe, the Middle East and

Africa (EMEA).

Markets across the Middle East have been some of the strongest

performers globally this year as they have benefitted both

from high energy prices, and the continued opening up of

their economies. This has seen their representation in major

indices rise, whilst a burgeoning IPO market is broadening the

investment opportunity. Interestingly, Middle Eastern markets

remain significantly underrepresented within investor portfolios,

which – in combination with the economic and structural

tailwinds mentioned above – help increase demand across the

region's equity markets. The region also benefits from a strong

fiscal outlook, low single digit inflation, and a reform agenda, all

of which should boost consumer confidence and increase the

appeal of the investment case.

South Africa presents another interesting investment opportunity

across the EMEA region, primarily because of its access to a

broad range of metals. High commodity prices have helped

push the current account balance into surplus, and corporate

investment has rebounded significantly. This should help

Engagement Case Study: Impala Platinum

Impala Platinum is one of the many companies we

have actively engaged with over the period.

Overview:

• We engaged with Impala Platinum, one of the

largest PGM miners in South Africa, to better

understand its aspiration to decarbonise its

operations by 2030 and meet net-zero targets

by 2050, while emphasising the need to align

management incentives to those targets.

Objective:

• Our aim was to encourage the company to

improve the disclosure of its decarbonisation

goals, whilst articulating medium and long-term

ambitions and targets, in areas we believe are

increasingly important to investors but were

missing from the company’s reporting and

announcements.

Outcome:

• Through our interactions, we have seen

improvements in the company’s attitudes towards

their net-zero and decarbonisation commitments.

• Furthermore, the company has confirmed that

it has made a commitment to achieve carbon

neutrality by 2050 and is finalising interim goals.

These interim targets, awaiting approval, are likely

to require a 30% reduction in total CO₂ emissions

relative to a 2019 baseline.

• In addition, the company has guided that once

the interim decarbonisation plans are approved,

these will be considered for incorporation

into management performance and incentive

payments scorecards.

• While this is a welcome update, we will continue

to monitor this decarbonisation roadmap to

ensure the company is meeting itscommitments.

Holdings in Turkey detracted over the period, led by online

shopping platform Hepsiburada as the company reported

earnings that fell short of market expectations. Whilst the local

inflationary picture has been challenging for Turkish corporates,

we expect the company to benefit from the underpenetrated

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Report of the Investment Manager

(continued)

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Carbon Footprint

As part of our ESG reporting capabilities, we

perform analysis to compare the estimated

carbon footprint of the portfolio versus the

benchmark, based on scope 1 and 2 emissions.

This analysis uses carbon emissions data from

third-party data providers, as well as Barings

own estimates based on the company’s sector,

geography, and size. To calculate the portfolio

carbon footprint, we compute the carbon

emissions per share multiplied by the number of

shares the portfolio holds, and the cumulative

emissions across all positions. The chart on the

right shows an estimate of the relative carbon

impact of a 1million USD investment in our

portfolio compared to the benchmark.

Based on this analysis, the portfolio has a

significantly lower carbon footprint than the

benchmark, per $1m invested. This reflects our

bottom-up stock selection decisions and the

compelling long term growth opportunities we

find across a range of lower carbon intensity

industries. We do not own some of the highest

carbon-emitting companies in the Energy,

Materials and Utilities sectors that are in the

benchmark. Whilst we do have exposure to these

sectors in the portfolio, we look for best-in-class

companies that have put in place measures to

reduce their carbon emissions.

Carbon Tonnage

Total Tonnage (Metric Tons per

$1m invested) Portfolio Benchmark¹

Carbon Scope 1 88.2 233.1

Carbon Scope 2 51.9 78.0

Carbon Combined 1 & 2 140.1 311.1

100

150

200

250

300

350

Carbon

Scope 1

Carbon

Scope 2

Carbon

Combined 1&2

Metric Tons per NAV USD million

Portfolio Benchmark

~55% REDUCTION

¹ Benchmark Carbon Tonnage calculated at Portfolio NAV, MSCI

EM EMEA.

Source: Barings, MSCI, 30 September 2022.

provide broader opportunities to invest, as real earnings growth

(excluding resources) is still below pre-COVID levels, which

suggests there is catch up potential. Whilst we remain vigilant

about the potential for social unrest, ongoing structural reforms

by the government are encouraging and are likely to support

rising private investment and higher employment levels.

Finally, whilst markets across emerging Europe remain most

exposed to the war in Ukraine, looking further ahead, we believe

opportunities exist as the region pivots away from Russian gas.

This is supported by large EU infrastructure projects, such as

the European Green Deal and NextGen EU funds that are set to

bring billions of euros to EU member states to help transform

their energy systems. There is also an opportunity for the region

to take advantage of nearshoring trends, where companies are

bringing manufacturing closer to customers. Certain EU member

states are well placed to provide lower cost skilled labour, strong

regulatory protection, and crucially, a lower delivery time for the

end consumer due to their closer geographical proximity.

We will continue our process of building new or adding to

existing positions in companies with strong and sustainable

business franchises, positive ESG dynamics, and where our

proprietary bottom-up research has identified a significant degree

of undervaluation relative to their future growth potential.

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Report of the Investment Manager

(continued)

Investment Process Highlights

We believe that equity markets are inefficient and that consistently applied fundamental bottom-up company analysis can identify

mispriced opportunities. To unearth these opportunities, we follow a Growth At a Reasonable Price (“GARP”) approach, and apply this to

all companies across our region. GARP investing is focused on identifying companies that are positioned to grow sustainably over the

medium to long term, but where growth is not necessarily recognised by the market. We therefore seek to select companies that have

the potential to thrive, but also offer good value. We believe that this approach is the most effective way to invest over longer periods as it

focuses on company fundamentals, sustainable business franchises, strong balance sheets and improving ESG characteristics.

Research

For company research, we use a consistent, analytical and qualitative framework applied through our proprietary Company Scorecard

(see chart A). This focuses on three pillars consistent with our GARP methodology: Growth, Valuation and Quality. Key inputs to our

research analysis include regular interactions with company management teams, detailed review of financial statements, and other

primary information resources (e.g. competitors, customers, industry experts, regulators). This information is utilised by our investment

professionals to produce proprietary financial models over a five-year research horizon. We value companies using our 5-year earnings

forecasts discounted by an appropriate Cost of Equity (CoE). By applying a consistent research approach, we can evaluate each company

on a like-for-like basis and determine relative attractiveness across countries and sectors.

Portfolio construction

We take the ideas generated through our research process and construct a portfolio that targets sustainable investment returns. Risk

management is central to this process, and we employ a range of approaches to identify risks within the portfolio. The aim of this process

is to ensure the businesses in which we invest drive portfolio performance, rather than broader macroeconomic events.

Once invested, our experienced investment team continue to monitor each company to ensure that our conviction remains intact and

that an investment remains attractive relative to other opportunities available in the market.

Chart A - Fundamental Research: Consistent Company Scorecard

Fundamental Research

Company Meetings Sector / Industry / Macro Dynamics

5 Year Proprietary Financial Forecasts ESG Considerations

Growth Quality Valuation

Historical – How has the company grown

its earnings over the last 3-years?

Near-term – Is the company expected to

grow earnings over the next 12-months?

Long-term – How is the company set to

grow earnings over the next 5-years based

on our forecasts?

Franchise – Does the company have a

competitive advantage?

Management – Are they competent,

committed and aligned with shareholders?

Balance Sheet – Does the company have

the ability to fund its growth?

Barings Valuation Approach

We use our 5-year earnings forecasts,

discounted by our Cost of Equity, to set

price targets and determine upside

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Report of the Investment Manager

(continued)

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Our Focus on ESG

Our proprietary ESG assessment forms a core component of our fundamental bottom-up research. It is guided by our in-depth

knowledge and regular interactions with company management teams.

Integrating ESG

As an integral step of our research, our ESG assessment affects both our view of a company’s quality and its valuation. This assessment

is dynamic rather than static; we closely monitor the companies we invest in for improvements or deteriorations in their attitudes to

ESG and reflect this in our scoring of both the quality of the business and its valuation. For each company under our coverage we

complete an ESG scorecard that focuses on three categories as a foundation of our assessment:

• Sustainability of the Business Model (Franchise)

• Corporate Governance Credibility (Management)

• Hidden Risks on the Balance Sheet (Balance Sheet)

Within each of these categories, we identify three further subcategories, which are relevant areas of potential risk or opportunity (see

chart B).

Key Topics

Score/

Rationale

Data / Issues to Consider

Sustainability

of the

Business

Model

(Franchise)

Employee Satisfaction

Exemplary

Employee Relations: Staff Turnover; Strikes; Remuneration

of Staff; Fair Wages; Injuries; Fatalities; Unionised Workforce;

Employee Engagement, Diversity & Inclusion

Resource Intensity

Improving

Water Usage; GHG Emissions; Energy; Transition Risks

Traceability/Security

in Supply Chain

Improving

Traceability of Key Inputs; Investments in Protecting the Business

from External Threats, e.g., Cyber Security, Physical Risks from

Climate Change; Backward Integration (Protection of Key Inputs);

Transition Risks in Supply Chain

Corporate

Governance

Credibility

(Management)

Effectiveness

of Supervisory/

Management Board

Not

Improving

Sound Management Structures: Separation of Chair &

CEO; Size of Board; Independence of Board; Frequency

of Meetings; Attendance Record; Voting Structure;

FemaleParticipationonBoards.

Credibility of Auditing

Arrangements

Not

Improving

Credible Auditor; Independent Audit Committee;

Qualification to Accounts

Transparency &

Accountability of

Management

Exemplary

Access To Management; Financial Reporting; Tax Disclosure and

Compliance; Appropriate Incentive Structure; Remuneration of

Staff; Gender & Diversity Considerations; Employee Relations

Hidden

Risks on the

Balance Sheet

(Balance

Sheet)

Environmental

Footprint

Improving

GHG Emissions; Carbon Intensity; History of Environmental

Fines/Sanctions; Reduction Programmes in Place for Water/

Waste/Resource Intensity, Air Quality; Transition Risks;

PhysicalRisks from Climate Change

Societal Impact of

Products/Services

Exemplary

Health/Wellness implications of Consumption of goods/services;

Product Safety Issues; Community Engagement

Business Ethics

Improving

Anti-competitive practices; Bribery/Corruption; Whistle-Blower

Policy; Litigation Risk; Tax Compliance; Freedom of Speech; Anti-

Slavery and Human Rights; Gender & Diversity Considerations

Chart B - Fundamental Research: Example ESG Assessment

Report of the Investment Manager

(continued)

ESG and its impact on the company valuation

Each of the nine subcategories of our ESG assessment will be rated from Unfavorable to Exemplary:

The individual scoring of each of the nine subcategories will translate into a premium or a discount that is added to the company’s Cost

of Equity (CoE), which is used to discount our earnings forecasts. A low ESG score would translate into an addition to the discount rate

of up to 2 percent, thus penalising the stock and reducing its attractiveness by decreasing its valuation. The rationale is that a company

associated with poor ESG is likely to have higher risks that should be reflected in the discount rate. Conversely, a high ESG score can

indicate a company that is lower risk, resulting in a reduction to the CoE of up to 1 percent.

Active Engagements with Investee Companies

We undertake engagements to positively influence ESG practices and improve ESG disclosure. Our approach is based on clear

objective setting, which strengthens our ability to monitor and steer company progress. We also collaborate with peers and industry

groups to enhance and share best practices. We believe that by engaging with companies, rather than blanket exclusions of entire

sectors, we have a greater chance of successfully effecting change. This can also result in value creation for our Shareholders.

Voting

We undertake to exercise our voting rights whenever possible and have engaged a dedicated third-party proxy-voting provider. In

instances where we disagree with the provider’s recommendations, we have the ability to cast our votes differently.

Climate Change

There is a clear trend towards a lower carbon economy leading to decreased use of fossil fuels in an effort to combat climate change.

We incorporate transition risks as well as physical risks from climate change in our valuation and qualitative evaluation of companies,

and use external data to run climate change scenarios. We couple this with our knowledge of companies to identify potential risks from

climate change and where needed, will engage with companies to improve disclosure or change behavior.

In addition, we have recently enhanced our ESG process by introducing a Carbon Cost assessment for relevant companies within

the investment universe. One component of the solution to climate change is the reduction of greenhouse gas (GHG) emissions. To

encourage this, governments have proposed or implemented policy tools, such as carbon taxes. For high carbon-emitting companies,

these policy tools will likely become a significant cost burden in the years ahead and could impact companies’ profitability.

Our Carbon Cost assessments aims to ensure that we quantify these potential costs through an adjustment to the Cost of Equity

to more accurately value companies and enhance our decision making. We assess the decarbonisation commitments of relevant

companies based on six key areas (see Chart C). The individual scoring of each of these areas will translate into a Cost of Equity

adjustment from 0% to 2%:

UNFAVORABLE NOT IMPROVING IMPROVING EXEMPLARY

+2% to COE -1% to COE

UNFAVORABLE NOT IMPROVING IMPROVING EXEMPLARY

+2% to COE 0% to CoE

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Report of the Investment Manager

(continued)

Baring Asset Management Limited

Investment Manager

7 December 2022

We believe that this adjustment provides a crucial starting point for understanding how carbon costs will affect companies - particularly

until there is more comprehensive data disclosed related to GHG emissions costs and decarbonisation efforts. As disclosures improve

going forward, we see a path toward these costs being explicitly modelled in financial forecasts, with companies incurring a cost of

carbon in their profit and loss statements just as they would any other cost of doing business.

For further detail on our approach to ESG integration and our Carbon Cost assessment please see the links below:

ESG Integration and Active Ownership Policy

Carbon Cost Assessment: Unlocking Hidden Value in Carbon-Intensive Companies

Score Data/Issues to Consider

Decarbonisation

Commitments

Exemplary

Does the company have a ‘net zero’ carbon target in line with national targets in

the jurisdiction where the company operates?

Improving

Are intermediate targets clearly communicated over a 5 and 10-year horizon?

Improving

Are tangible projects in place related to climate change mitigation with current and

proven technology?

Not Improving

Are management incentives aligned with carbon reduction targets?

Improving

Have these targets been certified by an outside organisation?

Exemplary

To what extent does the company use offsets?

Chart C - Fundamental Research: Carbon Cost Assessment



BISLDCLS\CORPORATE\OPERATIONS\NONE



 

Public Equities:

ESG Integration

& Active Ownership Policy













September 2022 1

INSIGHTS

Unlocking

Hidden Value in

Carbon-Intensive

Compan ies

In the race toward net zero, the ‘cost of

carbon’ may continue to affect company

valuations. Understanding this potential

impact is critical to identifying those

businesses that are best-positioned for

long-term outperformance.

PUBLIC EQUITIES

Clive Burstow

Head of Global Resources

Marios Halloumis, CFA

Director of ESG Integration &

Active Ownership

1. How the Public Equities Investment team undertakes stewardship and shareholder

engagement for the listed equity strategies they manage.

2. The integral role of ESG in Barings Equities team’s investment philosophy and research.

3. The integration of ESG in the management of portfolios.

4. Why Equities investment believes ESG considerations are a fundamental component of

the goal of achieving attractive risk-adjusted returns that we strive for in our stewardship

of our clients’ assets.

In the race toward net zero, the ‘cost of carbon’ may continue to affect company valuations.

Understanding this potential impact is critical to identifying those businesses that are best-

positioned for long-term outperformance.

Clive Burstow Marios Halloumis, CFA

Head of Global Resources Director of ESG Integration & Active Ownership

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Investment Portfolio

Review of Top Ten Holdings

at 30 September 2022

Investee company Sector

Market value

£’000

% of

investment

portfolio Company comment

The Saudi National Bank Financials 6,107 8.1% Largest bank in Saudi Arabia, originated from

merger of NCB and Samba with synergies still to be

delivered.

Al Rajhi Bank Financials 5,523 7.4% Number one Islamic bank globally. Dominant

mortgage market share (35%+) in Saudi Arabia,

supported by an extensive branch network, stable

retail deposit franchise and FinTech initiatives such

as its new consumer financing subsidiary, Emkan.

Qatar National Bank Financials 5,010 6.7% Largest bank in Qatar, with dominant market share

in both lending and deposits. Strong management

team with a long history and good track record.

Saudi Basic Industries

(SABIC)

Materials 3,652 4.9% Saudi Arabia’s dominant petrochemical chemical

company, benefitting from long-term fixed-price

feedstock contracts and a diversified asset base.

Firstrand Financials 3,265 4.3% Leading South African financial institution offering

a diverse range of services including transactional,

lending, insurance and investment products.

Saudi Telecom Communication

Services

3,264 4.3% Telecoms company offering steady revenue

growth and a strong balance sheet that helps

support dividends. Longer-term catalysts include

monetisation of infrastructure assets and growth of

their mobile wallet service, STC Pay.

Emaar Properties Real Estate 2,695 3.6% Property developer led by a strong management

team with a diversified revenue stream as a result

of exposure to real estate, shopping malls and

hospitality. Longer term the company should

benefit from the ongoing structural and social

reform in the UAE.

MTN Group Communication

Services

2,667 3.6% South African telecoms group with 270m

subscribers across Africa and the Middle East.

Subsidiary MTN MoMo is the leading African

mobile money fintech ecosystem with more than

60m active users. Long term growth is driven by

increasing mobile and internet penetration across

the region.

First Abu Dhabi Bank Financials 2,403 3.2% Leading bank in the UAE and one of the largest

across the Middle East. Diversified business model

split across investment, commercial, consumer and

private banking.

PZU Financials 2,233 3.0% Polish insurance group occupying a dominant

market position in a sector that stands to benefit

over the medium term from increasing insurance

penetration and rising interest rates. Strategic stakes

in the financial institutions Pekao and Alior offer

optionality in bancassurance, wealth management

and fintech.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Investment Portfolio

(continued)

Holding

Primary country

of listing or investment

Market value

£’000

% of

Net assets

1 The Saudi National Bank Saudi Arabia 6,107 8.10%

2 Al Rajhi Bank Saudi Arabia 5,523 7.32%

3 Qatar National Bank Qatar 5,010 6.64%

4 Saudi Basic Industries Saudi Arabia 3,652 4.84%

5 Firstrand South Africa 3,265 4.33%

6 Saudi Telecom Saudi Arabia 3,264 4.33%

7 Emaar Properties United Arab Emirates 2,695 3.57%

8 MTN Group South Africa 2,667 3.54%

9 First Abu Dhabi Bank United Arab Emirates 2,403 3.19%

10 PZU Poland 2,233 2.96%

11 Prosus South Africa 2,144 2.84%

12 Abu Dhabi Commercial bank United Arab Emirates 2,093 2.78%

13 Saudi Arabian Mining Saudi Arabia 1,779 2.36%

14 Anglo American South Africa 1,770 2.35%

15 Mol Hungarian Oil & Gas Hungary 1,681 2.23%

16 Naspers Limited South Africa 1,568 2.08%

17 Capitec South Africa 1,526 2.02%

18 Etihad Etisalat Saudi Arabia 1,513 2.01%

19 Shoprite Holdings South Africa 1,467 1.95%

20 Anglo American Platinum South Africa 1,378 1.83%

21 Koç holding Turkey 1,344 1.78%

22 National Bank of Kuwait Kuwait 1,244 1.65%

23 Industries Qatar Qatar 1,209 1.60%

24 Anglogold Ashanti South Africa 1,133 1.50%

25 Komercni Bank Czechia 1,130 1.50%

26 Bupa Arabia Saudi Arabia 1,129 1.50%

27 Human Soft Kuwait 1,088 1.44%

28 National Bank of Greece Greece 1,071 1.42%

29 Nedbank Group South Africa 1,065 1.41%

30 OTP Bank Hungary 1,049 1.39%

31 Mr Price Group South Africa 979 1.30%

32 Saudi Tadawul Group Saudi Arabia 944 1.25%

33 BİM Turkey 941 1.25%

34 Impala Platinum South Africa 941 1.25%

35 Aldar Properties United Arab Emirates 909 1.21%

36 Commercial Bank of Qatar Qatar 710 0.94%

37 Arabian Internet and Communication Services Saudi Arabia 687 0.91%

38 KGHM Polska Poland 622 0.82%

Investment Portfolio

at 30 September 2022

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Investment Portfolio

(continued)

Investment Portfolio

(continued)

at 30 September 2022

Holding

Primary country

of listing or investment

Market value

£’000

% of

Net assets

39 Inpost Poland 586 0.78%

40 Riyad Bank Saudi Arabia 528 0.70%

41 Alpha bank Greece 497 0.66%

42 Discovery South Africa 386 0.51%

43 PKO Bank Polski Poland 307 0.41%

44 Allegro Poland 286 0.38%

45 Bid Corporation South Africa 275 0.36%

46 Dubai Electricity and Water Authority United Arab Emirates 153 0.20%

47 D Market Electronic Services Turkey 79 0.10%

48 Salik Company United Arab Emirates 29 0.04%

49 Norilsk Nickel Russia — 0.00%

50 Magnit Russia — 0.00%

51 Moscow exchange Russia — 0.00%

52 NK Lukoil Russia — 0.00%

53 Novatek Russia — 0.00%

54 Gazprom Russia — 0.00%

55 Sberbank Russia — 0.00%

56 Tcs Group Russia — 0.00%

57 United Company Rusal Russia — 0.00%

58 X5 Retail Group Russia — 0.00%

59 Yandex Russia — 0.00%

Total investments 75,059 99.53%

Net current assets 349 0.47%

Net assets 75,408 100.00%

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Corporate Review

The Strategic Report on pages 2 to 31 of the Annual Report and Audited Financial Statements has been prepared in accordance

with the requirements of Section 414 of the Companies Act 2006 and best practice. Its purpose is to provide information to the

Shareholders of the Company and help them to assess how the Directors have performed their duty to promote the success of the

Company, in accordance with Section 172 of the Companies Act 2006.

Company Status

The principal activity of the Company is to carry on business as an investment trust. The Company intends at all times to conduct

its affairs so as to enable it to qualify as an investment trust for the purposes of Sections 1158/1159 of the Corporation Tax Act 2010

(“S1158/1159”). The Directors do not envisage any change in this activity in the foreseeable future.

The Company is quoted on the London Stock Exchange under the ticker code BEMO. As an investment trust, the Company has

appointed an Alternative Investment Fund Manager, Baring Fund Managers Limited (the “AIFM”), to manage its investments. It has also

appointed third-party service providers to manage the day-to-day operations of the Company, whose performance is monitored and

challenged by a Board of independent Non-Executive Directors.

The Directors are of the opinion that the Company continues to conduct its affairs so as to be able to continue to qualify as an

investment trust.

Key Performance Indicators

The Key Performance Indicators (“KPIs”) of the Company are as follows:

• Annualised NAV total return¹

• Share price total return¹

• Dividend per Ordinary Share¹

The returns for the year are set out under Financial Highlights on page 27.

Dividend Policy

The Company seeks to generate an attractive level of income for Shareholders and will pay income from capital of up to 1% per

annum of NAV when considered appropriate by the Board. The Board believes this is a sustainable policy that should improve the

Company’s appeal amongst investors.

Dividends

An interim dividend of 6.0 pence per Ordinary Share was declared on 30 May 2022 and paid on 1 July 2022.

The Board recommends a final dividend of 11 pence per Ordinary Share. Subject to Shareholder approval at the AGM, the

recommended final dividend will be paid on 6 February 2023 to Shareholders on the register at the close of business on

16December 2022. The Ordinary Shares will be marked ex-dividend on 15 December 2022.

Buyback Programme

During the year under review, the average discount to NAV at which the Company’s Ordinary Shares traded at was 15.3% (2021:

13.1%) and 114,579 Ordinary Shares were repurchased at a cost of £715,000 (2021: 231,245 Ordinary Shares at a cost of £1,715,000).

All Ordinary Shares repurchased during the year have been or are being cancelled.

APMs definitions can be found in the Glossary on pages 89 to 91.

Corporate Review

(continued)

Section 172 Statement

Background

Directors have a duty to make decisions that promote the success of a company for the benefit of shareholders as a whole. This

responsibility is formally enshrined in section 172 (1) of the Companies Act 2006, which stipulates that board decisions must be made

with the long-term consequences of those decisions in mind, including consideration of the interests of a company’s employees,

suppliers, customers and other stakeholders, the impact on the community and the environment, and the desirability of maintaining a

reputation for high standards of business conduct and the need to act fairly as between members of the Company.

Stakeholders

The Board seeks to understand the needs and priorities of the Company’s stakeholders, and these are taken into account during

discussions and as part of its decision-making. The Board has concluded that as the Company is an externally managed investment

trust and does not have any employees or customers in the traditional sense, its key stakeholders comprise its Shareholders, its

Investment Manager, its key service providers including, Corporate Broker, Company Secretary, Registrar, Custodian, Auditor

and Administrator and, its Investee Companies. However, the Board also takes account of the Company’s responsibilities to the

environment and the wider community. The section below discusses the actions taken by the Company to ensure that the interests

of stakeholders are taken into account, particularly in the context of the emerging climate change agenda.

Shareholders

Continued shareholder support and engagement are important to the existence of the Company and to the delivery of long-term

strategy.

The Board is committed to maintaining open channels of communication and to engage with Shareholders in a manner which they

find most helpful, in order to gain an understanding of the views of Shareholders. These include:

• Annual General Meeting – The Company welcomes and encourages attendance and participation from Shareholders at the AGM

and looks forward to hosting Shareholders again at the 2023 AGM. This forum provides Shareholders with the opportunity to

meet the Directors and the Investment Manager and to address questions to them directly. There is typically a presentation on the

Company’s performance and the outlook, from the Investment Manager.

• Publications – The Annual Report and Half-Year results are made available on the Company’s website and the Annual Report is

circulated to those Shareholders requesting hard copies. These reports provide Shareholders with detailed information on the

Company’s portfolio and financial position. This information is supplemented by a quarterly factsheet which is released via the

stock exchange and monthly factsheets posted to the Company’s wesbite.

• Shareholder Feedback – Shareholders in investment companies often meet with the Investment Manager rather than members of

the Board. However, the Board values the feedback and questions that it receives from Shareholders and takes note of individual

Shareholders’ views in arriving at decisions which are taken in the best interests of the Company. The Chairman or the Senior

Independent Director can be contacted via either the Company Secretary or the Corporate Broker, both of which are independent

of the Investment Manager.

• Investor Relations updates – At every Board meeting, the Directors receive updates from the Corporate Broker on share trading

activity, share price performance, the Company’s share register and any Shareholders’ feedback. The Board also review promotional

plans, PR activity and analyst’s comments or research reports on the Company.

The Investment Manager

Maintaining a close and constructive working relationship with the Investment Manager is a key priority of the Board. The Investment

Manager aims to achieve capital growth in line with the Company’s investment objective. The Board has a critical role in monitoring

the Investment Manager. The Board meets with the Investment Manager quarterly, and at other times as required, to analyse,

discuss and constructively challenge the investment approach, outlook and performance of the Manager. Further details on the

management arrangements can be found on page 12.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Corporate Review

(continued)

Third-Party Service Providers

In order for the Company to function as an investment trust, the Board relies on a variety of advisors for support. For this reason, the

Board considers the Company’s third-party service providers to be stakeholders.

The Board maintains regular contact with its key external providers and receives regular reporting from them, both through Board and

committee meetings, as well as on an ad-hoc basis outside of meetings. Their advice and views are routinely taken into account. The

Management Engagement Committee formally assesses their performance, fees and continuing appointment annually to ensure that

the key service providers continue to function at an acceptable level and are appropriately remunerated to deliver the expected level of

service. The Audit Committee reviews and evaluates the financial reporting control environments in place at the key service providers.

Investee Companies

The Board recognises the importance of good stewardship and communication with investee companies in meeting the Company’s

investment objective and strategy.

The Investment Manager engages with the management teams of investee companies on a periodic basis and reports its impressions

on the prospects of these investee companies to the Board. The Directors recognise that the Investment Manager can influence an

investee company’s approach to ESG matters, and this forms part of the investment process as detailed on pages 21 to 23.

Environment and Community

Given the outsourced nature of the Company’s operations, the Company has very little direct impact on the community or the

environment. However, the Board recognises that it can influence an investee company’s approach to ESG matters through the

approach adopted by the Investment Manager. The Company’s investment approach takes into account the external impact of investee

companies’ activities on the environment, their social practices’ and governance. The Investment Manager discusses ESG matters with

investee companies on a regular basis. Further details on the Company’s investment approach to ESG can be found on pages 21 to 23.

The mechanisms for engaging with stakeholders are kept under review by the Directors and are discussed on a regular basis at Board

meetings to ensure that they remain effective.

Board Activities

During the year, regular agenda items at Board meetings include the review of the Company’s portfolio, performance and the market,

investor relations, marketing activities, key risks, operational matters and governance, and compliance with the AIC Code.

Decision Making

The Board remain dedicated to open and transparent communication with Shareholders. This has been particularly important given

the challenging and volatile market backdrop over the financial year.

The Board made the following major decisions over the year which included the response to sanctions against Russia and the

conversion of a number of Russian depositary receipts into local Moscow Exchange listed securities. These decisions were

communicated to Shareholders via stock exchange announcements. Further detail can be found below:

• Board Response to Sanctions Against Russia

Following announcements from various authorities globally, with regard to Russian persons and entities subject to sanctions, the

Board made a number of adjustments to the Company’s net asset value to better reflect the fair value of Russian assets in the

portfolio. These changes reflect the fact that the Company’s ability to mark to market certain securities within the portfolio has been

impacted by exchange closures and sanctions.

This took place in two phases and reflected the evolving situation at the time. Russian securities listed on the Moscow Exchange

were valued at zero as of the 28th February following restrictions of sales; whilst depositary receipts and U.S. listed Russian stocks

were valued at zero on the 2nd March, after they had been suspended from trading. As of the date of this report, these exceptional

circumstances have not changed, and as a result, the Board has taken the decision to continue valuing these assets at zero.

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Corporate Review

(continued)

The Company continues to hold shares in Russian companies but, until there is a realistic prospect of being able to realise them, we

shall continue to value them at zero. Consequently, there is no exposure to Russia in the Company’s net asset value and Management

fees are not being charged on these assets.

• Russian Depositary Receipts Conversions

In September 2022 the Board was able to take advantage of an opportunity to convert a number of Russian depositary receipts held

within the portfolio into local Moscow Exchange listed securities.

After taking legal advice to ensure that this operation would not breach UK sanctions, the Company determined that taking

advantage of the possibility of carrying out such conversions would be in shareholders’ long-term interest.

As a result, the holdings in Gazprom, Lukoil, Norilsk Nickel and Novatek were converted into ordinary shares. These continue to be

valued at zero in the portfolio.

Culture and Values

The Company’s values focus on transparency, clarity and constructive challenge. The Directors seek to sustain a culture that

contributes to achieving the purpose of the Company that is consistent with its values and strategy.

Continuing Appointment of the Alternative Investment Fund Manager

The Board keeps the performance of the AIFM under continual review. The Management Engagement Committee conducts an

annual appraisal of the AIFM’s performance and makes a recommendation to the Board about the continuing appointment of the

AIFM. As the AIFM has delegated the portfolio management function to the Investment Manager, the performance of the Investment

Manager is also regularly reviewed. The annual review of the performance of the Investment Manager includes consideration of:

• overall performance and performance compared with the Benchmark and a suitability constructed peer group;

• investment resources dedicated to the Company;

• investment management fee arrangements compared with the peer group; and

• marketing support and resources provided to the Company.

It is the opinion of the Board that the continuing appointment of the AIFM, on the terms agreed, is in the best interests of Shareholders

as a whole. The Board is of the view that the AIFM has managed the portfolio well and in accordance with the Board’s expectations.

Viability Statement

The Directors consider viability as part of their continuing approach of monitoring risk. The Directors have assessed the prospects

of the Company over a longer period than the twelve months required by the “Going Concern” provision. The Board conducted

this review for a period of three years, which was selected because it was considered to be a reasonable time horizon for strategic

planning, taking into account the investment policy, liquidity of investments, the potential impact of economic cycles and revenue

generation.

The Directors have carried out a robust assessment of the Company’s principal and emerging risks, as well as its current position .

The principal risks faced by the Company and the procedures in place to monitor and mitigate them are detailed on pages 9 to 11.

The Company’s long term viability assessment is underpinned by the characteristics below:

• the Company has a long term investment strategy, implemented via a consistently applied investment process which is designed to

maximise the chances of the investment objectives being met;

• the Company has a portfolio of shares which are listed on regulated markets, many of which are highly liquid, and can be readily

realised to help meet liabilities as they fall due;

• underlying revenue generation of the portfolio is regularly reviewed and monitored. Whilst income generated by the portfolio has

undoubtedly been impacted by the absence of Russian dividends, longer term forecasts indicate an encouraging upward trend that

should help support a sustainable dividend;

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Corporate Review

(continued)

• the Company is well diversified across a range of countries and sectors. The broadening of the investment policy allowed the

Company to further diversify its concentration risk, whilst also benefiting from a larger opportunity set in high growth areas. It also

reduced the risk of idiosyncratic events materially influencing performance.

The Board has also considered the impact of the ongoing conflict between Russia and Ukraine that has led to significant disruption

and volatility across financial markets. As a result of this, the Directors made the determination to value Russian Equities at nil. This

was based on the current restrictions on trading due to sanctions and market liquidity. The Directors have also considered the future

ramifications of the evolving conflict and its potential to impact other countries.

The Investment Manager performs both market based stress tests and scenario analysis in assessing the Company’s viability. Stress

tests cover a range of sensitivities such as the predicted impact on the portfolio based upon: interest rate movements, commodity

price changes, currency appreciation/devaluation and equity market moves. This also includes scenarios based on hypothetical

future events and historic points of market stress. In carrying out this assessment, the Board has considered the diversification of the

Company’s portfolio, as well as the liquidity profile and earnings growth of the underlying investments. This analysis did not indicate

any matters of significant concern.

The Board continue to monitor the performance of the portfolio and the share price discount to net asset value against the criteria of

the tender offer.

Based on the above assessment, the Directors confirm that they have a reasonable expectation that the Company will be able to

continue in operation and meet its liabilities as they fall due over the coming three years.

Modern Slavery Act

As an investment vehicle the Company does not provide goods or services in the normal course of business and does not have

customers. Accordingly, the Directors consider that the Company is not required to make any slavery or human trafficking statement

under the Modern Slavery Act 2015. In any event, the Board considers the Company’s supply chain, dealing predominantly with

professional advisers and service providers in the financial services industry, to be low risk in relation to thismatter.

Environmental, Human Rights, Employee, Social and Community Issues

The Company does not have any employees and all of the Directors are non-executive and it has outsourced its functions to third-

party service providers. As an investment trust, the Company has very limited direct impact on the community or the environment,

and as such has no environmental, human rights, social or community policies. However, the Investment Manager (within the

Investment Managers Report on pages 21 to 23) has reported on the management of ESG within the portfolio.

The Company aims to conduct itself responsibility, ethically and fairly. ESG factors are considered by the Investment Manager as part

of its investment process, where appropriate. Further information can be found in the Investment Manager’s Report on pages 21 to

23, which is supported by the Board. A key consideration in the decision to change the investment policy of the Company in 2020

was the move away from hydrocarbons in the portfolio.

The Board supports the Investment Manager in its belief that good corporate governance will help deliver sustainable long-term

shareholder value. It therefore follows that in pursuing shareholder value, the Investment Manager will implement its investment

strategy through proxy voting and active engagement with management and Boards. Please see page 48 for furtherinformation.

This Strategic Report has been approved by the Board and signed on its behalf by:

Frances Daley

Chairman

7 December 2022

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Board of Directors

FRANCES DALEY FCA, MCSI

Chairman

Frances qualified as a Chartered

Accountant with a predecessor firm to EY

and spent nine years in corporate finance

followed by 18 years in various CFO roles.

From 2007 to 2012, she was group finance

director of the private equity backed

Lifeways Group, the UK’s largest provider

of specialist support to adults with learning

disabilities and mental health needs. She

is a non-executive director of Henderson

Opportunities Trust PLC and Regional

REITLimited.

Appointed to the Board on 29April 2014.

VIVIEN GOULD

Non-Executive Director

Vivien has worked in the financial services

sector since 1981. She was a founder

director of River & Mercantile Investment

Management Limited (1985) and served as

a senior executive and deputy managing

director with the group until 1994. She

then served on the boards of a number

of listed investment trusts, investment

management companies and other

financial companies. She also served

on the boards of a number of charities,

including the Stroke Association, where

she chaired the investment committee.

Vivien is currently a non-executive director

and senior independent director of The

Lindsell Train Investment Trust PLC, a non-

executive director of Schroder Asia Pacific

Fund PLC, Third Point Investors Limited

and National Philanthropic Trust UK.

Appointed to the Board on 11March 2019.

CHRISTOPHER GRANVILLE

Non-Executive Director

Christopher was formerly a British

diplomat in the Political Section of the

British Embassy in Moscow and has a

wealth of experience in Emerging Europe.

He is currently a managing director of TS

Lombard, an investment research provider

covering global macroeconomics and

political drivers, having co-founded in

2006 what is now TS Lombard’s emerging

markets division. Previously, he spent

six years as chief strategist and political

analyst at United Financial Group (UFG),

a Moscow-based investment bank

that was acquired by Deutsche Bank

in 2006. Christopher joined UFG from

FlemingUCB, where since 1995 he had

held the position of managing director

and head of research. Christopher is a

member of the board of directors of EOS

Invest AB and a member of the investment

committee of Olma Luxury Holdings

Private Equity Fund.

Appointed to the Board on 30November

2018.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

CALUM THOMSON FCA

Non-Executive Director and

AuditCommittee Chairman

Calum is a Chartered Accountant with

over 25 years’ experience in the financial

services industry. For over 21 years, he

was an audit partner at Deloitte LLP,

specialising in the asset management

sector, with clients including a wide range

of managers, investment trusts, banks,

sovereign wealth funds, large charities

and private equity funds. During his

career, he led Deloitte LLP’s global and UK

asset management groups. He is a non-

executive director and audit committee

chairman of The Diverse Income Trust

PLC, AVI Global Trust PLC, abrdn Private

Equity Opportunities Trust plc, BLME

Holdings Limited and Ghana International

Bank PLC. He currently chairs a charity:

the Tarbat Historic Trust and is a trustee of

the Suffolk Wildlife Trust.

Appointed to the Board on 21September

2017.

NADYA WELLS

Non-Executive Director and

SeniorIndependent Director

Nadya has over 25 years’ Emerging and

Frontier markets experience as a long-

term investor and governance specialist.

Latterly she spent 13 years with the Capital

Group until 2014, as a portfolio manager

and analyst with a focus on EMEA markets.

Prior to that she was a portfolio manager

at Invesco Asset Management investing

in Eastern Europe in closed end funds

until 1999. She started her career with

EY in management consulting. She is a

non-executive director on the boards of

various unlisted Luxembourgish SICAVs

which are managed by abrdn, of Hansa

Investment Company Limited, and also

sits on the audit committee of the Drugs

for Neglected Diseases Initiative. She has

an MBA from INSEAD, an MA from Oxford

University and an MSc from the University

of Geneva.

Appointed to the Board on 23September

2015.

Board of Directors

(continued)

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Report of the Directors

The Directors of the Company are pleased to present their Report, together with the audited financial statements of the Company,

for the year ended 30 September 2022.

In accordance with the Listing Rules and the Disclosure, Guidance and Transparency Rules, the reports within the Corporate

Governance section of this Annual Report should be read in conjunction with one another and the Strategic Report. As permitted,

some of the matters normally included in the Directors’ Report have instead been included in the Strategic Report (pages 2 to 31) as

the Board considers them to be of strategic importance.

Directors

As at 30 September 2022, the Board consisted of five Non-Executive Directors, all of whom are considered by the Board to be

independent. The dates of their appointment are shown on pages 32 to 33, together with their full biographies, which demonstrate

the range of skills and experience each Director brings to the Board.

The appointment and replacement of Directors is governed by the Company’s Articles of Association (the “Articles”). The Articles may

be amended by a special resolution of the Shareholders.

The Board carries out an annual review of the performance of each Director, of the Board as a whole and of each Board Committee.

In accordance with the policy adopted by the Board and the AIC Code of Corporate Governance, all Directors will retire and submit

themselves for re-election annually.

The Board is of the view that, following consideration of the findings of the annual evaluation, all Directors contribute effectively,

possess the necessary skills and experience and continue to demonstrate commitment to their roles as Non-Executive Directors

of the Company and its future. The Board, having considered the Directors’ performance within the annual Board performance

evaluation process, hereby recommends that Shareholders vote in favour of each Directors proposed re-election. Accordingly, all

Directors will retire at the forthcoming AGM, and being eligible, will offer themselves for re-election.

There were no contracts or arrangements subsisting during the year under review or up to the date of this Report in which any

Director is or was materially interested, including with the AIFM, which is or was significant in relation to the Company’s business.

None of the Directors is entitled to compensation for loss of office on the takeover of the Company.

The Board has access to independent professional advice at the Company’s expense where it judges it necessary to discharge its

responsibilities properly. The terms and conditions of the Directors’ appointments are set out in their letters of appointment, which

are available for inspection on request at the registered office of the Company and at the AGM.

Chairman and Senior Independent Director

The Chairman of the Company, Frances Daley, and Senior independent Director of the Company, Nadya Wells are Non-Executive

Directors.

Policy on Tenure of Directors

The Board does not believe it would be appropriate to set a specific tenure limit for individual Directors or the Chairman. However,

the Board will seek to maintain an average tenure of nine years for all of its Directors, including the Chairman, thus preserving

the cumulative valuable experience and understanding of the Company, while benefitting from fresh perspectives and helping to

promote diversity.

Role and Responsibilities of the Chairman

The Chairman leads the Board and is responsible for its overall effectiveness in directing the affairs of the Company. Key aspects of

the Chairman’s role and responsibilities are to:

• act with objective judgement;

• promote a culture of openness and debate;

• facilitate constructive Board relations and the effective contribution of all Directors;

• work with the Company Secretary, to ensure that all Directors receive accurate and timely information so they can discharge

theirduties;

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

• seek regular engagement with the Company’s Shareholders; and

• act on the results of the annual evaluation of the performance of the Board, its Committees and individual Directors.

The Chairman was independent on appointment and remains independent as set out in the AIC Code.

Role and Responsibilities of the Senior Independent Director

The key elements of the Senior Independent Director’s role are to:

• act as a sounding board for the Chairman;

• lead the annual evaluation of the Chairman as part of the annual evaluation process;

• in the event of any major difference of opinion on the direction of the Company, act as an intermediary between the Chairman,

other Directors and the Investment Manager; and

• provide a conduit for views of Shareholders in the event that the usual channels are not available or not suitable in the

circumstances.

Indemnity of Directors and Compensation for Loss of Office

Pursuant to the Articles and the Companies Act, the Directors are indemnified against any liability. There are no other qualifying

third-party indemnity provisions in place. In addition, the Company has procured Directors’ and Officers’ liability insurance. The

Company does not have any arrangements in place with any Director that would provide for compensation for loss of office.

Diversity

The Nomination Committee reviewed the Company’s Diversity policy in September 2022. The Committee noted the recent guidance

as published by the Financial Conduct Authority (August 2022) in respect of diversity and inclusion. The Board is mindful of the aims

of the new guidance and will continue to ensure that it hires from a diverse pool of candidates. Selection and appointment at Board

level will continue to be based on merit and against objective criteria in the context of the overall balance of skills and background of

the Board, and in order to best serve the evolving needs of the Company whilst being mindful of the geographic and ethnic diversity

of the investment universe. The Board of Directors of the Company currently comprises three females and two males, and one

director is of mixed ethnicity with EMEA region heritage.

Board Independence

The Chairman and all Directors were considered independent of the Investment Manager at the time of their appointment and, in

line with the guidelines of the AIC Code of Corporate Governance, all continue to be considered independent.

Share Capital

As at 30 September 2022, the Company’s total issued share capital was 15,248,408 Ordinary Shares (30 September 2021:

15,362,987), of which the Company held 3,318,207 Ordinary Shares in treasury. The Ordinary Shares held in treasury are treated as

not being in issue when calculating the weighted average of Ordinary Shares in issue during the year. All Ordinary Shares repurchased

during the year have been or are being cancelled. All of the Company’s Ordinary Shares in circulation are listed on the main market of

the London Stock Exchange and each Ordinary Share carries one vote.

The rights attached to the Company’s Ordinary Shares are set out in the Company’s Articles. The Company’s Ordinary Shares are

freely transferable. However, the Directors’ may refuse to register a transfer of Ordinary Shares which are not fully paid nor where

the instrument of transfer is not duly stamped or shown to be exempt from stamp duty. The Directors may also decline to register a

transfer of an uncertificated share in the circumstances set out in the uncertificated securities rules, and where the number of joint

holders to whom the uncertificated shares is to be transferred exceeds four. There are no restrictions on the voting rights of the

Company’s Ordinary Shares.

Amendments to the Company’s Articles and the granting of authority to issue or buy back the Company’s shares requires an

appropriate resolution to be passed by Shareholders.

There are no restrictions on voting for the holders of Ordinary Shares, who are entitled to attend and vote at a Shareholders meeting.

Report of the Directors

(continued)

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Report of the Directors

(continued)

Share Issues

At the Annual General Meeting (“AGM”) held on 25 January 2022, the Directors were granted authority to allot Ordinary Shares up to

an aggregate nominal amount of £120,173 (being 10% of the issued Ordinary Share capital as at the date of publication of the Notice).

This authority is due to expire at the Company’s forthcoming AGM. The Company has not issued any Ordinary Shares under this

authority. Proposals for the renewal of this authority are set out in the notice of AGM.

Treasury Shares

Shares brought back by the Company may be held in treasury, from where they could be re-issued at a premium to NAV quickly

and cost effectively. This provides the Company with additional flexibility in the management of its capital base. No shares were

purchased for treasury during the year or since the year end. The Company holds 3,318,207 Ordinary Shares in treasury.

Purchase of Own Shares

At last year’s AGM held on 25 January 2022, the Directors were authorised to make market purchases of up to 14.99% of the

Company’s Ordinary Shares in issue at that time, amounting to 1,801,405 shares. Since the AGM held on 25 January 2022 and the

year end, the Company bought back 159,353 Ordinary Shares with a nominal value of 0.10 pence per Ordinary Shares, and at a total

cost of £863,000 under this authority. As at 30 September 2022, the remaining authority for the purchase of own shares is Ordinary

Shares. A total of 3,318,207 Ordinary Shares are held in treasury, representing 21.76% of the issued share capital at 30 September

2022. This authority is due to expire at the Company’s forthcoming AGM. Proposals for the renewal of this authority are set out in the

notice of AGM, which is circulated separately to this Report.

Substantial Shareholdings

Information on major interests in shares provided to the Company under the Disclosure, Guidance and Transparency Rules are

published via a Regulatory Information Service.

As at the year end the Company had received notification of the following disclosable interests in the voting rights of the Company.

Year ended 30 September 2022

Shareholders

Number of Ordinary

Shares notified

% Interest in

sharecapital

City of London Investment Management Company Limited 3,237,882 27.14%

Lazard Asset Management LLC, New York, United States of America 1,096,747 9.19%

City of Bradford Metropolitan District Council 925,158 7.75%

Dividends

Details of the Interim dividend paid by the Company during the year and the final dividend as recommended by the Board are set out

in the Strategic Report on page 27.

Corporate Governance

The statement of Corporate Governance, as shown on pages 39 to 48, forms part of this report by reference. The Directors have

prepared a statement on how the principles and recommendations of the AIC Corporate Governance Code have been applied.

Going Concern

The Directors believe that, having considered the Company’s investment objectives, risk management policies, capital management

policies and procedures, nature of the portfolio and expenditure projections, the Company has adequate resources and an

appropriate financial structure in place to continue in operational existence for the foreseeable future, being a period of at least

twelve months from the date of approval of the financial statements. The assets of the Company are well diversified and consist

mainly of securities which are readily realisable. For these reasons, the Directors consider that there is reasonable evidence to

continue to adopt the going concern basis in preparing the accounts.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Report of the Directors

(continued)

Requirements of the Listing Rules

Listing Rule 9.8.4 requires the Company to disclose specific information in a single identifiable section of the Annual Report. The

Directors confirm that there are no disclosures to be made under the Listing Rule 9.8.4.

Streamlined Energy and Carbon Reporting (“SECR”) statement: greenhouse gas (“GHG”) emissions and energy

consumption disclosure

The Company has no employees or property and it does not combust any fuel or operate any facility. It does not, therefore, have

any greenhouse gas emissions to report from its operations, nor does it have responsibility for any other emissions producing

sources under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013, including those within its

underlying investment portfolio.

The Company has zero emissions associated or attributed to the Company and no underlying global energy consumption.

Accordingly, there are no energy efficiency action measures taken over the reporting year.

Conflict of Interest

The Articles provide that the Directors may authorise any actual or potential conflict of interest that may arise, with or without

imposing any conditions that they consider appropriate on the Director. Directors are not able to vote in respect of any contract,

arrangement or transaction in which they have a material interest and, in such circumstances, they are not counted in the

quorum. A process has been developed to identify any of the Directors’ potential or actual conflicts of interest. This includes

declaring any potential new conflicts before the start of each Board meeting. The Directors are satisfied that this procedure is

adequate.

Companies Act 2006 Disclosures

In accordance with Section 992 of the Act, the Directors disclose the following information:

• the Company’s capital structure and voting rights are summarised on page 35, and there are no restrictions on voting rights nor

any agreement between holders of securities that result in restrictions on the transfer of securities or on voting rights;

• there exist no securities carrying special rights with regard to the control of the Company;

• details of the substantial Shareholders in the Company are listed on page 36;

• the Company does not have an employees’ share scheme;

• the rules concerning the appointment and replacement of Directors, amendment of the Articles of Association and powers to

issue or buy back the Company’s Ordinary Shares are contained in the Articles of Association of the Company and the Act;

• there are no agreements to which the Company is party to that may affect its control following a takeover bid; and

• there are no agreements between the Company and its Directors providing for compensation for loss of office that may occur

because of a takeover bid.

The Board recognises the requirement under Section 417(5) of the Act to detail information about environmental matters

(including the impact of the Company’s business on the environment), any Company employees and social and community

issues; including information about any policies it has in relation to these matters and effectiveness of these policies. As the

Company has no employees or policies in these matters this requirement does not apply. Notwithstanding, the Investment

Manager takes into account these considerations when making investment decisions and determines its voting instructions at

investee company meetings accordingly.

Further details are set out on page 23.

Financial Risk Management

The principal financial risks and the Company’s policies for managing these risks are set out in note 13 to the Financial Statements.

Report of the Directors

(continued)

Auditor

The Company’s Auditor, BDO LLP, has indicated its willingness to continue in office. The Audit Committee has responsibility for

making a recommendation to the Board on the re-appointment of the Independent Auditors. Resolutions for the re-appointment of

BDO LLP and to authorise the Board to determine its remuneration will be proposed at the AGM.

Audit Information

The Directors who held office at the date of approval of this Report confirm that, so far as they are aware, there is no relevant

information which the Company’s auditor is unaware. Each Director has taken all reasonable steps that she or he ought to have taken

as a Director to make herself or himself aware of any relevant audit information and to establish that the Company’ auditor is aware

of that information.

Annual General Meeting

The AGM will be held on Thursday, 26 January 2023 at 2:30 p.m. The formal notice of the AGM will be provided to Shareholders

under separate cover. Separate resolutions are proposed for each substantive issue, and a full explanation of the resolutions being

proposed at the AGM may be found in the Notice.

The Board considers that all the resolutions to be put to the meeting are in the best interests of the Company and its Shareholders as

a whole. The Board unanimously recommends that you vote in favour of them, as those Directors (Frances Daley, Calum Thomson

and Vivien Gould) who hold Ordinary Shares in the Company intend to do so.

Review of the Year

A review of the year and the outlook for the forthcoming year can be found in the Strategic Report and Investment Manager’s Review.

The Board has considered this Report and Financial Statements. The Board has concluded that as a whole, the Report is fair,

balanced and understandable and provides the information necessary for Shareholders to assess the Company’s position,

performance, business model and strategy.

Post Balance Sheet Events

Since the year end and at the date of this Report, the Company has repurchased 72,173 of its own Ordinary Shares at a cost of

£377,000. These Ordinary Shares will be cancelled.

Link Company Matters Limited

Secretary

7 December 2022

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Background

The UK Listing Rules require listed companies to disclose how they have applied the principles and complied with the provisions of the

corporate governance code to which the issuer is subject. The provisions of the UK Corporate Governance Code (“UK Code”), as issued

by the Financial Reporting Council (“FRC”) in July 2018, are applicable to the year under review and can be viewed at www.frc.org.uk.

The related Code of Corporate Governance (the “AIC Code”) issued by the Association of the Investment Companies (“AIC”) in February

2019 addresses all the principles set out in the UK Code as well as providing specific corporate governance guidelines to investment

companies. The FRC has confirmed that AIC member companies who report against the AIC Code will be meeting their obligations in

relation to the UK Code and the associated disclosure requirements of the FCA. The AIC Code can be viewed at www.theaic.co.uk.

Compliance

Throughout the year ended 30 September 2022, the Company complied with the principles and provisions of the AIC Code which

incorporates the UK Code, except as set out below. The Board attaches great importance to the matters set out in the Code and strives to

observe its principles. Accordingly, the table on the following pages reports on compliance with the recommendations of the AICCode.

It should be noted that, as an investment trust, all of the Directors are non-executive and the Company’s day-to-day responsibilities are

delegated to third parties. Consequently, the Company has not reported on those provisions of the UK Code relating to the role of the

chief executive or executive remuneration. The Board does not have a separate Remuneration Committee and considers there to be

no need for an internal audit function. For the reasons set out in the AIC Code, and as explained in the UK Code, the Board considers

that these provisions are not relevant to the position of the Company, being an externally managed investment company. In particular,

all of the Company’s day-to-day management and administrative functions are outsourced to third parties. As a result, the Company

has no executive Directors, employees or internal operations and as such the Directors do not determine the need for an internal audit

function to be practicable or necessary. The Company has therefore nothing to report in respect of these provisions.

The Principles of the AIC Code

The AIC Code is made up of 18 principles and 42 provisions over five sections covering:

• Board Leadership and Purpose;

• Division of Responsibilities;

• Composition, Succession and Evaluation;

• Audit, Risk and Internal Control; and

• Remuneration.

The Board’s Corporate Governance Statement sets out how the Company complies with the provisions of the AIC Code.

AIC Code Principle Compliance Statement

A. A successful company is led by an

effective Board, whose role is to

promote the long term sustainable

success of the Company, generating

value for Shareholders and

contributing to wider society.

Members of the Board are fully engaged and bring diverse skills to the table

fostering healthy debate. The investment objective is to achieve growth,

principally through investment in emerging and frontier equity securities listed or

traded on Eastern European, Middle Eastern and African (EMEA) markets.

In managing the Company, the aim of the Board and of the Investment Manager

is to ensure the long-term sustainable success of the Company and, therefore,

the likely long-term consequences of any decision are a key consideration.

As part of this, the opportunities and risks faced by the business are considered,

monitored and assessed on a regular basis, both in terms of potential and

emerging risks that the business may face. More detail regarding the principal

risks and uncertainties and the sustainability of the business model can be found

in the Strategic Report on pages 2 to 31.

Statement of Corporate Governance

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Statement of Corporate Governance

(continued)

AIC Code Principle Compliance Statement

B. The Board should establish the

Company’s purpose, values and

strategy, and satisfy itself that these

and its culture are aligned. All

Directors must act with integrity,

lead by example and promote the

desiredculture.

The purpose of the Company is also the investment objective, which 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) markets. The Company also seeks to provide Shareholders with

an attractive level of income from a diversified portfolio of investments designed

to outperform the Benchmark in sterling terms.

The Board assesses and monitors its own culture as part of the annual Board

evaluation process, including its policies, practices and behaviour to ensure that

it is appropriately aligned to the Company’s activities. The Board has defined its

culture and values. It has also agreed behaviours and attributes that promote the

culture and values.

As detailed on page 21, the Investment Manager takes ESG factors into

consideration as part of the investment process.

C. The Board should ensure that the

necessary resources are in place for

the Company to meet its objectives

and measure performance against

them. The Board should also establish

a framework of prudent and effective

controls, which enable risk to be

assessed and managed.

The Directors regularly consider the Company’s financial position in the context

of its business model, the balance sheet and cash flow projections. The Board

and the Management Engagement Committee regularly review the performance

of the Company and the performance and resources of the Investment Manager

and its other key service providers to ensure that the Company can continue to

meet itsobjectives.

The Audit Committee is responsible for assessing and managing risks and

further information about how this is undertaken can be found in the Audit

Committee Report on pages 53 to 57.

D. In order for the Company to meet

its responsibilities to Shareholders

and stakeholders, the Board should

ensure effective engagement with,

and encourage participation from,

theseparties.

The Board understands its responsibilities to Shareholders and stakeholders and

considers any views and expressed opinions of all such parties when making

any decisions. The Board considers that, other than Shareholders, other key

stakeholders are third-party providers, the Investment Manager and its investee

companies. On page 28, the Board describes its key stakeholders, the reason they

are important and how the Board seeks to gain an understanding of their interests

and engage withthem.

The Management Engagement Committee reviews annually the performance of

the Investment Manager and the Company’s other third-party service providers

including the performance, level and structure of fees payable and the length of

notice period, to ensure that the service providers remain competitive and the

agreed arrangements are in the best interests of Shareholders.

The Board considers the impact any decision will have on all relevant stakeholders

to ensure that they are making a decision that promotes the long-term success

of the Company, whether this be in relation to dividends, new investment

opportunities, potential future fundraisings etc.

In addition, the Directors welcome the views of all Shareholders and place

considerable importance on communications with them.

Any substantive communications regarding any major corporate issues would be

discussed by the Board taking into account representations from the Investment

Manager, the Auditor, Legal Adviser, Corporate Broker and Company Secretary.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Statement of Corporate Governance

(continued)

AIC Code Principle Compliance Statement

F. The chair leads the Board and is

responsible for its overall effectiveness

in directing the Company. They should

demonstrate objective judgement

throughout their tenure and promote

a culture of openness and debate.

In addition, the chair facilitates

constructive Board relations and the

effective contribution of all Non-

Executive Directors, and ensures that

Directors receive accurate, timely and

clear information.

There is a clear division of responsibility between the Chairman, the Directors,

the Investment Manager and the Company’s other third-party service providers.

The Chairman is responsible for leading the Board and is responsible for its

overall effectiveness in directing the affairs of the Company. The Chairman

ensures that all Directors receive accurate, timely and clear information

and promotes a culture of openness and debate in Board meetings by

encouraging and facilitating the effective contribution of other Directors

towards a consensus view. The Chairman also takes a leading role in seeking

to ensure effective communications with Shareholders and other stakeholders.

Further details on the Company’s engagement with Shareholders and other

stakeholders can be found in the S.172(1) Statement set out on pages 28 to 30.

The Board meets regularly throughout the year and representatives of the

Investment Manager are in attendance, when appropriate, at each meeting

and most Committee meetings. The Board has agreed a schedule of matters

specifically reserved for decision by the Board.

Prior to each Board and Committee meeting, Directors are provided with a

comprehensive set of papers giving detailed information on the Company’s

activities to all relevant management, financial and regulatory information.

The annual evaluation of the Board’s effectiveness always considers the

performance of the Chairman, and whether she has performed her role

effectively. This year’s evaluation was led by the SID, taking into account

feedback from the Directors. The document setting out the roles of the

Chairman and SID is available on the Company’s website. This review concluded

that the Chairman continues to make a significant contribution, and devotes

sufficient time, to the affairs of the Company and continues to display excellent

leadership, supporting the effective functioning of the Board.

The SID acts as a sounding board for the Chairman, and provides a channel for

any Shareholders concerns regarding the Chairman.

G. The Board should consist of an

appropriate combination of Directors

(and, in particular, independent

Non-Executive Directors) such that

no one individual or small group of

individuals dominates the Board’s

decisionmaking.

All of the Directors are non-executive and independent of the Investment

Manager and the other service providers.

The Chairman, Frances Daley, was independent of the Investment Manager at

the time of her appointment and remains so.

Each Director is not a Director of another investment company managed by the

Company’s Investment Manager, nor has any Board member been an employee

of the Investment Manager or any of its service providers.

In the Board’s opinion, each Director continues to provide constructive

challenge and robust scrutiny of matters that come before the Board.

The Nomination Committee considers the composition of the Board as well as

the longer-term succession plans for the Board.

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Statement of Corporate Governance

(continued)

AIC Code Principle Compliance Statement

H. Non-executive Directors should have

sufficient time to meet their Board

responsibilities. They should provide

constructive challenge, strategic

guidance, offer specialist advice and

hold third-party service providers

toaccount

As part of the Board evaluation process, the contributions of each Director, as

well as the time commitments made by each Board member are considered

and reviewed. Directors’ other commitments are regularly reviewed and any

new appointments are considered by the other Directors to ensure there is no

conflict of interest or risk of overboarding.

Following the Board evaluation, it was concluded that each Director provided

appropriate levels of challenge and provided the Company and the Investment

Manager with guidance and advice when required.

The Management Engagement Committee reviews the performance and

cost of the Company’s third-party service providers on an annual basis. More

information regarding the work of the Management Engagement Committee

can be found on pages 49 and 50.

I. The Board, supported by the Company

Secretary, should ensure that it has

the policies, processes, information,

time and resources it needs in order to

function effectively and efficiently.

The Board’s responsibilities are set out in the Schedule of Matters Reserved for the

Board and certain responsibilities are delegated to its committees, so that it can

operate effectively and efficiently. The Directors have access to the advice and

services of the Company Secretary through its appointed representative which is

responsible to the Board for ensuring that Board procedures are followed and that

applicable rules and regulations are complied with. The Company Secretary is also

responsible for ensuring good information flows between all parties. The Directors

also have access to independent advisers as and when required.

J. Appointments to the Board should

be subject to a formal, rigorous

and transparent procedure, and an

effective succession plan should be

maintained. Both appointments and

succession plans should be based

on merit and objective criteria and,

within this context, should promote

diversity of gender, social and

ethnic backgrounds, cognitive and

personalstrengths.

The Board has established a Nomination Committee, comprising the whole Board.

This Committee will lead the appointment process of new Directors as and when

vacancies arise and as part of the Directors’ ongoing succession plans. More

information regarding the work of the Nomination Committee can be found on

pages 51 and 52. No new Directors were appointed in the year under review.

The Board while noting the requirements for diversity and inclusion for Company

Boards and Executive Management as set out in the FCA’s recent policy

statement; has adopted a diversity policy, which acknowledges the benefits of

greater diversity and remains committed to ensuring that the Company’s Directors

bring a wide range of skills, knowledge, experience, backgrounds and perspectives

to the Board. Whilst the Board does not feel that it would be appropriate to set

targets as all appointments are made on merit, the following objectives for the

appointment of Directors have been established:

• all Board appointments will be made on merit, in the context of the skills,

knowledge and experience that are needed for the Board to be effective; and

• long lists of potential Non-Executive Directors should include diverse candidates

of appropriate merit.

The Company is committed to ensuring that any Board vacancies are filled by the

most qualified candidates. The Company’s policy on the tenure of Directors also

helps guide long-term succession plans and recognises the need and value of

progressive refreshing of the Board.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Statement of Corporate Governance

(continued)

AIC Code Principle Compliance Statement

K. The Board and its committees should

have a combination of skills, experience

and knowledge. Consideration should

be given to the length of service of

the Board as a whole and membership

regularlyrefreshed.

The Directors’ biographical details are set out on pages 32 and 33 of this

report. These demonstrate the wide range of skills and experience they bring to

theBoard.

The Directors’ skills, experience and knowledge matrix is reviewed as part of

the annual evaluation process. When considering new appointments, the Board

reviews its skills matrix and seeks to add individuals with complementary skills or

who possess skills and experience which fill any gaps in the Board’s knowledge or

experience and who can devote sufficient time to the Company to carry out their

duties effectively.

L. Annual evaluation of the Board should

consider its composition, diversity

and how effectively members work

together to achieve objectives.

Individual evaluation should

demonstrate whether each Director

continues to contribute effectively.

An annual evaluation of the performance of the Board, its committees and

individual Directors takes place every year. For the period under review, this

was carried out by way of a questionnaire and subsequent discussions. The SID

led the evaluation, which covered the functioning of the Board as a whole, the

effectiveness of the Board Committees and the independence and contribution

made by each Director.

The Nomination Committee receives relevant points arising from the

performance evaluation process and then considers the information when

making a recommendation to the Board regarding the re-election of a Director.

Following this review, the Board is satisfied that the structure, mix of skills

and operation of the Board is effective and relevant for the Company and is

recommending that Shareholders vote in favour of their election at the AGM.

More information regarding the proposed re-election of each Director can be

found in the Notice of AGM.

M. The Board should establish

formal and transparent policies

and procedures to ensure the

independence and effectiveness of

external audit functions and satisfy

itself on the integrity of financial and

narrativestatements.

The Audit Committee supports the Board in fulfilling its oversight responsibilities

by reviewing the performance of the external Auditor, audit quality, as well as

the Auditor’s objectivity and independence. The Committee also reviews the

integrity and content of the financial statements, including the ongoing viability

of the Company. The Audit Committee has put in place a non-audit services

policy, which ensures that any work outside the scope of the standard audit work

requires prior approval by the Audit Committee. This enables the Committee to

ensure that the external Auditors remain fully independent.

The Audit Committee carries out a review of the performance of the external

Auditor on an annual basis.

Feedback from other third parties, including the Investment Manager, is included

as part of this assessment to ensure the Audit Committee takes into account

the views of different parties who have a close working relationship with the

externalauditor.

Further information regarding the work of the Audit Committee can be found on

pages 53 to 57.

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Statement of Corporate Governance

(continued)

AIC Code Principle Compliance Statement

N. The Board should present a fair,

balanced and understandable

assessment of the Company’s position

and prospects.

The Audit Committee supports the Board in assessing that the Company

accounts present a fair, balanced and understandable assessment of the

Company’s position and prospects. The Audit Committee has considered the

Annual Report and Accounts as a whole and believe the document presents

a fair, balanced and understandable assessment of the Company’s position

andprospects.

O. The Board should establish procedures

to manage risk, oversee the internal

control framework, and determine

the nature and extent of the principal

risks the Company is willing to take in

order to achieve its long-term strategic

objectives.

The work of the Audit Committee supports the Board through its independent

oversight of the financial reporting process, including the financial statements,

the system of internal control and management of risk, the appointment and

ongoing review of the quality of the work and independence of the Company’s

external Auditor. The Audit Committee reviews reports from the principal

service providers on compliance and the internal and financial control systems

in operation and relevant independent audit reports thereon.

Given the nature of the business, the Company is reliant on its service providers

and their internal controls. The Audit Committee therefore annually reviews the

control systems in operation of the Company’s key service providers in so far as

they relate to the affairs of the Company. As set out in more detail in the Report

of the Audit Committee on pages 53 to 57, the Company has in place a detailed

system for assessing the adequacy of those controls.

Oversight of the Audit Committee’s internal controls is described in more detail

in the Audit Committee report on page 55.

P. Remuneration policies and practices

should be designed to support strategy

and promote long-term sustainable

success

The Directors are all non-executive and independent of the Investment Manager.

They receive fees and no component of any Director’s remuneration is subject to

performance factors.

The Company follows the recommendation of the AIC Code that Non-Executive

Directors’ remuneration should reflect the time commitment and responsibilities

of the role. The Company’s policy is that the remuneration of Non-Executive

Directors should reflect the experience of the Board as a whole and be

determined with reference to comparable organisations and appointments.

Directors are not eligible for bonuses, share options, long-term incentive

schemes or other performance related benefits as the Board does not believe

that this is appropriate for Non-Executive Directors.

The Remuneration Policy is therefore designed to attract and retain high quality

Directors, whilst ensuring that Directors remain focused and incentivised to

promote the long-term sustainable success of the Company.

Whilst there is no requirement under the Company’s Articles of Association or

letters of appointment for Directors to hold Ordinary Shares in the Company,

the Chairman, Mr Thomson and Ms Gould own Ordinary Shares in the Company,

all of which were purchased in the open market and using the Directors’ own

resources.

The details of their shareholdings are set out on page 60.

Further information can be found in the Remuneration Report on pages 58 to 62.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Statement of Corporate Governance

(continued)

AIC Code Principle Compliance Statement

Q. A formal and transparent procedure for

developing policy remuneration should

be established. No Director should

be involved in deciding their own

remuneration outcome

As the Company has no employees and the Board is comprised wholly of Non-

Executive Directors, the Board has not established a separate Remuneration

Committee. Directors’ remuneration is determined by the Board as a whole, at

its discretion, within an aggregate ceiling as set out in the Company’s Articles

of Association. Each Director abstains from voting on their own individual

remuneration. The Remuneration Policy has been developed with reference to

the peer group.

There is an agreed fee which all Non-Executive Directors receive (irrespective

of experience or tenure) and an additional fee for the roles of Audit Committee

Chairman and SID. There is also an agreed fee for the role of Chairman. Any

changes to the Chairman’s fee are considered by the Board as a whole, with the

exception of the Chairman who excuses herself from this part of the meeting.

The details of the Remuneration Policy and Directors fees can be found on pages

58 to 59.

R. Directors should exercise independent

judgement and discretion when

authorising remuneration outcomes,

taking account of company and

individual performance, and wider

circumstances

Any decision with regard to remuneration is taken after considering the

performance of the Company and the current market conditions. As there are no

performance related elements of the remuneration, there is very little scope for

the exercise of discretion or judgement.

The Board

Collectively the Board has the requisite range of business, financial and sector experience which enables it to provide clear and

effective leadership and proper stewardship of the Company. None of the Directors has a service contract. However, letters of

appointment setting out the terms of their appointment are in place. Directors are not entitled to any compensation for loss of office.

Board Operation

The Directors meet at regular Board meetings, which are scheduled in advance and additional meetings and telephone/video conference

meetings are arranged as necessary. Directors’ attendance at Board and Committee meetings during the year was asfollows:

Board Meetings

Audit

Committee Meetings

Nomination

Committee Meetings

Management

Engagement

Committee Meetings

Number

entitled to

attend

Number

attended

Number

entitled to

attend

Number

attended

Number

entitled to

attend

Number

attended

Number

entitled to

attend

Number

attended

Frances Daley 5 5 3 3 1 1 2 2

Vivien Gould 5 5 3 3 1 1 2 2

Christopher Granville 5 5 3 3 1 1 2 2

Calum Thomson 5 5 3 3 1 1 2 2

Nadya Wells 5 5 3 3 1 1 2 2

Ad hoc Board and Committee meetings were held during the year as required. Specifically, the Board met to consider the Company’s

response to sanctions imposed on Russia and its impact on Russian investments of the Company.

Statement of Corporate Governance

(continued)

The Board deals with the Company’s affairs, including the consideration of overall strategy, the setting and monitoring of investment

policy and the review of investment performance. The AIFM takes decisions as to asset allocation and the purchase and sale of

individual investments.

The Board papers circulated before each meeting contain full information on the financial condition of the Company. Key representatives

of the AIFM attend most of the Board meetings, enabling Directors to probe further or seek clarification on matters ofconcern.

Matters specifically reserved for discussion by the full Board have been defined and a procedure has been adopted for the Directors to

take independent professional advice if necessary, at the Company’s expense.

Election/re-election of Directors

Under the Company’s Articles and in accordance with the AIC Code, Directors are required to retire at the first AGM following their

appointment. Thereafter, at each AGM all Directors will seek annual re-election.

Board Evaluation

The effectiveness of the Board, the Chairman, the Committees and individual Directors during the year was undertaken by way of

questionnaires specifically designed to assess the strengths and weaknesses of the Board and its Committees. The questionnaires

were completed by each Director and the assessment covered the functioning of the Board as a whole and a similar review of the

effectiveness of the Chairman, Board Committees and the individual performance of the Directors.

The questionnaires are also intended to analyse the focus of Board meetings and assess whether they are appropriate, or if any

additional information may be required to facilitate Board discussions. The results of the Board evaluation process were reviewed and

discussed by the Nomination Committee and Board.

As a result of the evaluation, the Board considers that all the current Directors contribute effectively and have the skills and experience

relevant to the leadership and direction of the Company. The Board further concluded that the Chairman remained independent and

her performance was satisfactory, with strong leadership capability.

The Board has also reviewed the Chairman’s and Directors’ other commitments and is satisfied that the Chairman and other Directors

are capable of devoting sufficient time to the Company. The Board therefore recommends that Shareholders vote in favour of each

resolution proposing each individual Director’s re-election at the forthcoming AGM.

Board Committees

The Board has agreed a schedule of matters specifically reserved for decision by the full Board, subject to which the Board has

delegated specific duties to Committees of the Board which operate within written terms of reference. The Board had three

Committees in operation during the reporting period, and has delegated certain responsibilities to its Audit Committee, Management

Engagement Committee and its Nomination Committee. The Board has established formal terms of reference for each of the

Committees which are available on the Company’s website.

The Board believes that the interests of Shareholders in an investment trust company are best served by limiting its size so that all Directors

are able to participate fully in all the activities of the Board. It is for this reason that the membership of the Audit, Nomination Committee

and Management Engagement Committees is the same as that of the Board as a whole. The Board considers that, as it is comprised of

independent Non-Executive Directors, it is not necessary to establish a separate Remuneration Committee. Functions normally carried out

by a remuneration committee are dealt with by the Board. Each Director abstains from voting on their individual remuneration.

The Directors’ Remuneration Policy and Directors’ fees are detailed in the Directors’ Remuneration Report on pages 58 to 60. respectively.

Audit Committee

The Directors have appointed an Audit Committee consisting of the whole Board which is chaired by Calum Thomson FCA. The Board’s

view is that the members of the Committee, taken as a whole, have the necessary recent and relevant financial experience and as a

whole has competence relevant to the sector in which the Company operates. The Audit Committee reviews audit matters within

clearly-defined written terms of reference. The Audit Committee Report can be found on pages 53 to 57.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Statement of Corporate Governance

(continued)

The Board notes that the AIC Code permits the Chairman of the Board to be a member of the Audit Committee of an investment

trust. In recognising the Chairman’s experience, the Audit Committee resolved to continue to endorse the Chairman’s appointment to

theCommittee.

Nomination Committee

The Nomination Committee consists of the whole Board and is chaired by Nadya Wells. The Committee meets at least annually and

terms of reference are in place which include reviewing the Board’s size, structure and diversity, succession planning and training.

Possible new Directors are identified against the requirements of the Company’s business and the need for a balanced Board. The

Company is committed to ensuring that any vacancies arising are filled by the most qualified candidates. The Board has adopted a

diversity policy, which notes the requirements for diversity and inclusion for Company Boards and Executive Management as set out in

the FCA’s policy statement.The Committee acknowledges the benefits of greater diversity, and remains committed to ensuring that the

Company’s Directors bring a wide range of skills, knowledge, experience, backgrounds and perspectives to the Board. External search

consultants may be used to ensure that a wide range of candidates can be considered. The Nomination Committee Report can be

found on pages 51 to 52.

Management Engagement Committee

The Management Engagement Committee comprises the whole Board, being independent Directors and is chaired by Nadya Wells.

The Committee meets at least annually to review the performance of the AIFM and to consider any variance to the terms of the AIFM

Agreement and reports its findings to the Board. It also reviews the performance and terms of engagement of the Company’s third-

party service providers.

The Committee met twice during the year under review to consider the performance of the Investment Manager, the Administrator,

the Company Secretary and other third-party service providers. Please see pages 49 and 50 for the considerations of the Committee in

reaching its recommendation to the Board about the continuing appointment of the Investment Manager.

Risk Management and Internal Controls

The Directors are responsible for the Company’s system of risk management and internal control which is designed to safeguard

Shareholders’ investment and the Company’s assets, maintain proper accounting records and ensure that financial information used

within the business, or published, is reliable. However, such a system can only be designed to manage rather than eliminate the risk of

failure to achieve business objectives and therefore can only provide reasonable, but not absolute, assurance against fraud, material

misstatement or loss.

The Board as a whole is primarily responsible for the monitoring and review of risks associated with investment matters and the

Audit Committee is primarily responsible for other risks. As the Board has contractually delegated to external parties the investment

management, the depositary and custodial services and the day-to-day accounting and company secretarial requirements, the

Company relies significantly upon the internal controls operated by those companies.

The Audit Committee has concluded that the Company should not establish its own internal audit function. The Board continues to

monitor its system of internal control in order to ensure it operates as intended and the Audit Committee reviews annually whether

an internal audit function is required. Alternative investment fund management services are provided by Barings and details of the

agreement with the AIFM are given in note 3 to the Financial Statements.

The Depositary is State Street Trustees Limited and the Custodian is State Street Bank & Trust Company. Administration services are

provided by Link Alternative Fund Administration Limited. Company Secretarial services are provided by Link Company Matters Limited.

Regular risk assessments and reviews of internal controls are undertaken in the context of the Company’s overall investment objective

by the Board, through the Audit Committee.

The Audit Committee maintains a risk matrix, which identifies the risks to the Company and details the controls in place to mitigate

those risks. The risks are assessed on the basis of the likelihood of them happening, the impact on the business if they were to occur

and the effectiveness of the controls in place to mitigate them. The risk matrix is updated when emerging risks are identified.

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Statement of Corporate Governance

(continued)

As part of the risk review process, regular reports are received from the AIFM on all investment matters including compliance with

the investment mandate, the performance of the portfolio compared with the Benchmark and compliance with investment trust

statusrequirements.

Most functions for the day-to-day management of the Company are sub-contracted, and the Directors therefore obtain regular assurances

and information from key third-party suppliers regarding the internal systems and controls operated in their organisations. In addition, each

material third-party is requested to provide a copy of their report on internal controls each year, which is reviewed by the Audit Committee.

These processes were in place during the year and was in place at the date of the signing of this Report. The principal risks that have

been identified by the Board are set out on pages 9 to 11.

Corporate Governance and Voting Policy

The Company delegates responsibility for voting in respect of its investee companies to its AIFM. The AIFM have in turn delegated this

responsibility to the Investment Manager.

The Investment Manager engages a proxy voting service provider (“Service Provider”) responsible for processing and maintaining records

of proxy votes. In addition, the Service Provider will retain the services of an independent third-party research provider (“Research

Provider”) to provide research and recommendations on proxies.

The Investment Manager recognises that there may be times when it is in the best interests to vote in whole or in part against the

Research Provider’s recommendations or Guidelines. If in such case the Investment Manager wishes to vote against the Research

Provider’s recommendations or Guidelines, the documented rationale must be submitted to the appropriate governance group at the

Investment Manager for approval.

The Investment Manager retains the right not to vote a proxy in certain circumstances as follows:

• the cost of voting a proxy for a foreign security outweighs the expected benefit, so long as refraining from voting does not materially

harm the Company;

• the Investment Manager is not given enough time to process the vote (i.e. receives a meeting notice and proxy from the issuer too late

to permit voting);

• the Company may hold shares on a company’s record date, but sells them prior to the investee’s meeting date;

• the investee has participated in share blocking, which would prohibit the Investment Manager’s ability to trade or loan shares for a

period of time;

• the Investment Manager has outstanding sell orders on a particular security and the decision to refrain from voting may be made in

order to facilitate such sale; or

• the underlying securities have been lent out pursuant to a security lending program.

This is a non-inclusive list of examples. The Investment Manager will supply the Company with the voting record for the most recent 12-

month period ending 30 September 2022 for those proxies it has voted on behalf of the Company.

In the Investment Manager’s assessment of the risk factors, prior to making an investment in these classes, the Investment Manager will

take into account the corporate governance structure of the company, judging whether the structure could inhibit the delivery of good

returns and whether the interests of the management are aligned with those of the investors in the company.

The Investment Manager makes use of an external agency, Institutional Shareholders Services (“ISS”), a recognised authority on proxy

voting and corporate governance to assist on voting procedures. ISS gives recommendations which the Investment Manager assess

and then votes in accordance with what they believe to be in the best interests of the Company.

On behalf of the Board

Frances Daley

Chairman

7 December 2022

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

I am pleased to present the Management Engagement Committee Report for the year ended

30September 2022.

Composition and Role of the Management Engagement Committee

The Management Engagement Committee comprises myself, as Chairman, and the entire Board,

all being independent Non-Executive Directors. Terms of Reference have been established and

agreed by the Board, which are available on the Company’s website.

The Committee’s primary responsibilities are to:

• monitor and evaluate the Investment Manager’s investment performance and compliance with

the terms of the AIFM Agreement;

• review the terms of the AIFM Agreement annually to ensure that the terms conform with

market and industry practice and remain in the best interests of Shareholders;

• recommend to the Board any variation to the terms of the AIFM Agreement which it considers

necessary or desirable;

• review and make the appropriate recommendations to the Board as to whether the continuing

appointment of the AIFM is in the best interests of the Company and Shareholders;

• review the level and method of remuneration of the Investment Manager;

• monitor the appropriateness and compliance of other service providers’ terms of their

respective agreements;

• review, consider and recommend to the Board any amendments to the terms of the

appointment and remuneration of other service providers; and

• consider any points of conflict of interest which may arise between the service providers.

Matters Considered During the Year

The Committee met twice during the year under review, to consider the performance and

the continuing appointment of the AIFM and, to review the performance of the Company’s

other third- party service providers. The Committee conducted its annual review of the

performance of the Investment Manager, which included consideration of:

• overall performance and performance compared with Benchmark and peer group;

• investment resources dedicated to the Company;

• investment management fee arrangements compared with the peer group;

• marketing support and resources provided to the Company;

• a review of the Investment Management Agreement (“IMA”) between the Company and the

Investment Manager was undertaken by external lawyers to ensure the Agreement remained

fit for purpose and reflected current legislation/best practice. The proposed amendments to

the Agreement were reviewed and approved by theCommittee; and

• a review of the Fund Administrator and the Company Secretary of the Company.

With respect to the review of the performance of the Company’s other third-party service

provides, the Committee considered the quality of services provided and the overall value

for money. The Committee concluded that the services provided by other service providers

were satisfactory and the agreements entered into were operating in the best interests

ofShareholders.

Nadya Wells

Chair of the Management

Engagement Committee

Management Engagement Committee Report

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Management Engagement Committee Report

(continued)

Continuing Appointment of the Alternative Investment Fund Manager

The Board keeps the performance of the AIFM under continual review. The Committee conducts an annual appraisal of the AIFM’s

performance and makes a recommendation to the Board about the continuing appointment of the AIFM.

It is the opinion of the Board that the continuing appointment of the AIFM, on the terms agreed, is in the best interests of Shareholders

as a whole. The Board is of the view that the AIFM has managed the portfolio well in accordance with the Board’s expectations.

Nadya Wells

Chair of the Management Engagement Committee

7 December 2022

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Nadya Wells

Chair of the Nomination

Committee

I am pleased to present the Nomination Committee Report for the year ended 30 September

2022.

Composition and Role of the Nomination Committee

The Nomination Committee comprises myself, as Chairman, and the entire Board, all being

independent Non-Executive Directors. Terms of Reference have been established and

agreed by the Board, which are available on the Company’s website.

The primary responsibilities of the Committee are:

• to review the structure, size and composition (including the skills, knowledge, experience

and diversity) of the Board;

• to give full consideration to succession planning for Directors in the course of its work,

taking into account the challenges and opportunities facing the Company, and the skills

and expertise needed on the Board in the future;

• to identify and nominate for the approval of the Board, candidates to fill Board vacancies

as and when they arise;

• to review the results of the Board performance evaluation process that relate to the

composition of the Board; and

• to review annually the time required from Non-Executive Directors.

The Committee is cognisant of the link between succession planning, strategy and the

culture of the Company, and the role in which it plays.

In considering succession planning, the Committee reviews the matrix setting out the skills

and competencies of the Board. It undertakes a proactive process of planning, review and

assessment, considering the strategic priorities and main factors affecting the long-term

success and future of the Company and the associated diversity, skill sets and breadth of

perspectives needed on the Board. Suitably qualified external search consultants assist in

the search process for all new Board appointees.

Activities During the Year

Effective succession planning is important for the long-term success of the Company. The

Committee keeps the composition of the Board under review to monitor the continuing

independence of the Non-Executive Directors, to identify any gaps in skills or experience

so that appropriate training can be arranged, and to inform the succession plan for future

Board appointments as new skills needs emerge.

The Committee will continue to make recommendations for new appointments to the

Board based on merit, with candidates measured against objective criteria and with

regard to the skills and experience they would bring to the Board. It will also consider

and review the appointment of the Chairman, and the Chairman will be excluded from

thesediscussions.

Nomination Committee Report

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Nomination Committee Report

(continued)

The Committee considered the results of the Board evaluation and the Company’s culture. The Committee developed a new shared

vision for culture at Board level as a foundation for the congenial Board environment of respectful challenge. The Committee

believes this environment allows each board member to contribute their skills to the long term success of the Company. During the

year, the Committee held two scheduled meetings which were attended by all members of the Committee.

The Board, on the recommendation of the Committee, is satisfied that each Non-Executive Director serving at the end of the year

remains independent and continues to have sufficient time to discharge their responsibilities to the Company.

Nadya Wells

Chair of the Nomination Committee

7 December 2022

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

I am pleased to present the Audit Committee Report for the year ended 30September 2022.

Composition and Role

The Audit Committee, chaired by myself, comprises the entire Board, including the Chairman

of the Board. Ms Daley was independent on appointment and the Committee considers

it appropriate for her to be a member having regard to her skills, experience and valued

contributions, which enhance the overall effectiveness of the Committee.

The Committee members collectively have a broad range of financial, commercial,

investment and sector experience. Both Ms Daley and I are qualified Chartered Accountants.

Iam satisfied that the Committee members, individually and collectively, are independent

andappropriately experienced and, that at least one member has recent and relevant

financial experience.

Clearly defined Terms of Reference have been established and agreed by the Board, which

are available on the Company’s website. The primary responsibilities of the Audit Committee

are to:

• monitor the integrity of the financial statements, the financial reporting process and the

accounting policies of the Company;

• review the content of the Annual Report and Accounts and advise the Board on whether,

taken as a whole, it is fair, balanced and understandable and provides Shareholders with

sufficient information to assess the Company’s position and performance, business model

and strategy;

• report to the Board on any significant financial reporting issue and judgements having

regard to any matters communicated to it by the Auditor;

• review the effectiveness of the internal control environment of the Company and risk

management systems;

• review the Company’s risk register, including significant and emerging risks;

• manage the relationship with the Company’s external Auditor, including reviewing the

Auditor’s remuneration, independence and performance and make recommendations to

the Board as appropriate;

• review the Auditor’s independence and objectivity and the effectiveness and quality of the

audit process; and

• regularly review the need for an internal audit function.

The Audit Committee usually meets three times a year to review the Annual and Half Year

Financial Reports, audit timetable and other risk management and governance matters. It

may meet more often if deemed necessary, or if required by the Auditor. During the year

under review, the Audit Committee met on three occasions, these being scheduled meetings.

All members attended these meetings. Please see page 45 for member attendance.

The Audit Committee has direct access to the Company’s Auditor, BDO LLP, and

representatives of the Auditor attend an Audit Committee meeting at least once a year. The

Audit Committee meets with the Auditor once during the year without the presence of the

Investment Manager and Administrator.

Audit Committee Report

Calum Thomson

Chairman of the Audit Committee

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Audit Committee Report

(continued)

Significant Matters Considered by the Audit Committee

During its review of the Company’s financial statements for the year ended 30 September 2022, the Audit Committee considered the

following matters to be significant issues, including those communicated by the Auditor during its review:

Significant Issue How the issue was addressed

Valuation of the investment portfolio The Board relies on the Administrator and the Investment Manager to use correct listed

prices and seeks comfort in the testing of this process through the internal control

statements. This was discussed with the Administrator, Investment Manager and Auditor

at the conclusion of the audit of the financial statements.

The valuation of investments is undertaken in accordance with the accounting policies,

disclosed in note 1 to the financial statements, on pages 73 to 76. The Investment

Manager reviews the valuation of the investments by both the Administrator and

Custodian. Actively traded investments are valued using stock exchange prices provided

by a third-party vendor. Regular updates are provided to the Audit Committee about the

activities and valuations of any unquoted holdings. The Company uses the services of an

independent Depositary (State Street) to hold the assets of the Company. The Depositary

checks the consistency of its records with those of the Manager on a monthly basis and

reports to the Audit Committee.

The Investment Manager regularly provides information to the Audit Committee in

respect of the liquidity of the portfolio and valuation of Russian stocks which have

currently been valued at zero.

During the year, and at the year-end, there were no matters brought to light which called

into question that the key controls in this area were not working.

Existence of the investment portfolio Like all services performed by the Company, the Committee relies on third-party

service providers to ensure controls are in place. The Company uses the services of an

independent Custodian to hold the assets of the Company. The investment portfolio is

reconciled by the Investment Manager to the Custodian’s records on a monthly basis.

The Investment Manager also reviewed the Custodian’s service levels and performance

throughout the year and conducted quarterly performance reviews with the Custodian.

The Company has also appointed a Depositary whose responsibilities include

monitoring the controls operated by the Custodian and overseeing the safekeeping of

the Company’s assets. The Committee receives regular reports from the Depository,

including details on its oversight of the Custodian.

Accuracy of the calculation for any

tender conditions; discount and

performance

In view of a potential tender offer following the year ending 30 September 2025,

the level of discount and performance is calculated by the Administrator. This is also

reviewed by the Investment Manager and the Audit Committee.

Risk Matrix The Committee considered that it was appropriate to include the sanctions regime

against Russia and the Company’s current inability to trade in Russian securities, as a new

risk within the Company’s risk management matrix.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Audit Committee Report

(continued)

Going Concern and Viability

The Committee reviews and assesses the Annual Report and makes recommendations to the Board to confirm that it is fair, balanced and

understandable and provides the information necessary for Shareholders to assess the Company’s position and performance, business

model and strategy and has reported these findings to the Board. This included an assessment and recommendation on whether it was

appropriate to prepare the Company’s financial statements on a going concern basis. This review included challenging the assumptions

on viability of the Company and reviewing stress tests focused on its ability to continue to remain viable. The Board’s conclusions in this

respect are set out in the Going Concern Statement and Long Term Viability statement on pages 30 and 37 respectively.

Other Matters Considered by the Audit Committee in the Year

The Committee also reviewed the key risks of the Company and the internal control framework operating to control risk. The

Committee also reviewed the proposed programme for the year-end audit and the subsequent Audit Report of the external Auditor.

In addition to the matters included above the Audit Committee has:

• reviewed the revenue forecast and analyses prepared by the Administrator, in order to make a recommendation on the semi-annual

and final dividends;

• agreed the audit plan, including the principal areas of focus and agreed the audit fee with the Auditor;

• reviewed and updated the Company’s risk matrix, including assessment of emerging and principal risks facing the Company;

• reviewed the internal controls and risk management systems of the Company and the control reports of its third-party service

providers, including those issued by the Company’s Administrator, Depositary, Custodian and Investment Manager;

• agreed to seek assistance from the Company’s Auditor to examine the measures the Company’s Custodian had in place to review the

internal controls of the sub-custodians;

• met with the Investment Manager to discuss and challenge the valuation and existence of unquoted and quoted investments and to

review the liquidity of the portfolio; and

• considered the recoverability of withholding tax on several of the Company’s dividends received, some of which is irrecoverable.

However, such recovery can be difficult in some jurisdictions, and the Company has incurred professional service fees in this area.

At each Audit Committee meeting, the members discussed the emerging risks that may have an impact on the Company. Topics that

were considered included the longer-term impact of issues such as climate change and energy transformation.

Internal Controls and Risk

The Board has ultimate responsibility for the management of risk and the Company’s systems of internal control. The Board, through

the Audit Committee, has established an ongoing process for identifying, evaluating and managing risks. The Audit Committee

has exercised its management of financial, operational and compliance risks and of overall risk by relying on regular reports on

performance attribution and other management information provided by the Investment Manager and other third-party suppliers.

The Audit Committee reviews annual reports from the AIFM, the Depositary, the Registrar, Administrator, Investment Manager and the

Custodian on their internal controls and their operation. These control reports are designed to provide details of the internal control

procedures operated by the relevant entity and typically include a report by an independent reporting accountant. Accordingly, the

internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives and by their

nature can only provide reasonable and not absolute assurance against misstatement and loss.

Regular risk assessments and reviews of internal controls are undertaken in the context of the Company’s overall investment objective.

The Board, through the Audit Committee, has identified risk management controls in four key areas: corporate strategy; published

information and compliance with laws and regulations; relationships with service providers; and investment and business activities.

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Audit Committee Report

(continued)

In arriving at its judgement of what risks the Company faces, the Board has considered the Company’s operations in the light of the

following factors:

• the nature and extent of risks which it regards as acceptable for the Company to bear within its overall business objective;

• the threat of such risks becoming reality;

• the Company’s ability to reduce the incidence and impact of risk on its performance; and

• the cost to the Company and benefits related to the Company and third parties operating the relevant controls.

A risk matrix has been produced against which the risks identified and the controls in place to mitigate those risks can be monitored.

The risks are assessed on the basis of the likelihood of them happening, the impact on the business if they were to occur and the

effectiveness of the controls in place to mitigate them. This risk matrix is reviewed twice a year by the Audit Committee and at other

times as necessary. The principal and emerging risks that have been identified by the Board are set out on pages 9 to 11.

The Board reviews financial information produced by the Investment Manager and the Administrator on a regular basis. Most

functions for the day-to-day management of the Company are sub-contracted, and the Directors therefore obtain regular

assurances and information from key third-party suppliers regarding the internal systems and controls operated in their

organisations. In addition, each of the third parties is requested to provide a copy of its report on internal controls each year, which

is reviewed by the Audit Committee, together with letters of comfort confirming that those controls were still in operation at the

Company’s year-end.

Audit

Regulations currently in force require the Company to rotate audit firms after a period of 10 years, which may be extended where

audit tenders are carried out or where more than one audit firm is appointed to carry out the audit. BDO LLP was appointed as the

Auditor in 2019 following a formal tender process and presented their first report in respect of the 2019 financial year.

The Audit Committee monitors and reviews the effectiveness of the audit process for the Annual Report, including a detailed

review of the audit plan at the planning stage and the audit results report on completion of the audit, and make recommendations

to the Board on the re- appointment, remuneration and terms of engagement of the Auditor.

The Audit Committee meets at least once a year with the Auditor. The Auditor provides a planning report in advance of the annual

audit and a report on the annual audit and its findings. The Audit Committee has an opportunity to discuss any aspect of the

Auditor’s work and ask questions of the Auditor.

The Committee reviewed and discussed the findings of the FRC’s recent 2022 Audit Quality Report on the quality of audits

performed by BDO LLP and has satisfied itself that none of the shortcomings as identified in the Audit Quality Report were

materially relevant to the audit of the Company.

Independence and Objectivity of the Auditor

BDO LLP has been the auditor to the Company from the 2019 financial year and was appointed following a competitive tender

process. The audit partner of the Company has not been rotated since the Auditor’s initial appointment. The Committee

acknowledges that rotating the Audit Partner provides a fresh perspective on the audit responsibilities for the Company. The Audit

Committee regularly considers the need to put the audit out to tender, its fees and independence, together with any matters

raised during the audit.

Peter Smith, the current Audit Partner, has served for a tenure of four years and will step down as audit partner after he has served

for five years. The Audit Committee reviews the scope and nature of all proposed non audit services before engagement, to

ensure the independence and objectivity of the auditor are safeguarded. The Auditor was asked to attest that BDO LLP and the

audit team members are independent of the Company. BDO LLP also confirmed that it had not been engaged to provide any

non-audit services.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Audit Committee Report

(continued)

The Audit Committee has reviewed the effectiveness and quality of the Auditor including: independence; the quality of the audit

work including the ability to resolve issues in a timely manner, its direct communication with the Company; its cost effectiveness;

feedback from the Investment Manager and Administrator; and the quality of people and services. The Auditor has not provided

any non-audit services to the Company during the year under review (2021: None).

The Audit Committee has satisfied itself that the Auditor remains independent and objective. The Board concluded, on the

recommendation of the Audit Committee, that the Auditor be re-appointed at the forthcoming Annual General Meeting.

Audit Fees and Non-Audit Services

An audit fee of £40,000 (exclusive of VAT) has been agreed in respect of the audit for the year ended 30 September 2022 (2021:

£30,150).

The Audit fee of £40,000 included a payment of £2,000 due to additional work resulting from the audit work required in respect of the

Company’s holdings of Russian stocks. The increase in Audit fees for 2021/22, partly reflects the regulatory burden that has impacted

the Auditor's costs in addition to inflation.

All proposed non-audit services must be notified to the Audit Committee, which considers any such proposal before engagement in

order to maintain auditor independence and objectivity. No non-audit fees were paid to BDO LLP in the year.

Tax Services

The Company has appointed KPMG LLP to provide certain tax compliance services.

Internal Audit

The Audit Committee has determined that there is no need for an internal audit function as it delegates most of its operations to

third parties and does not employ any staff. The Audit Committee considers annually whether there is any need for an internal audit

function, and it has agreed that it is appropriate for the Company to reply on the controls which exist within its third-party providers.

The Company does not have a whistleblowing policy and procedure in place. It delegates its main functions to third-party providers

who have such policies in place and the Audit Committee understands that these policies meet the industry standards.

Committee Effectiveness

During the year, the Board carried out an internally facilitated evaluation of its performance and that of its Committees. The evaluation

confirmed that the Audit Committee continued to operate at a high standard.

Financial Statements

In finalising the Financial Statements for recommendation to the Board for approval the Committee has concluded that the going

concern principle is appropriate. The Audit Committee has also satisfied itself that the Annual Report and Financial Statements taken

as a whole are fair, balanced and understandable, and provide the information necessary for Shareholders to assess the Company’s

position and performance, business model and strategy.

Calum Thomson

Chairman of the Audit Committee

7 December 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Directors’ Remuneration Report

for the year ended 30 September 2022

Directors’ Remuneration Report

The Board presents the Directors’ Remuneration Report for the year ended 30 September 2022, which has been prepared in

accordance with the requirements of The Large and Medium-sized Companies and Groups (Accounts and Reports) (Amendment)

Regulations 2013.

The Law requires the Company’s Auditor to audit certain of the disclosures provided. Where disclosures have been audited, they are

indicated as such. The Auditor’s opinion is included in the Independent Auditor’s Report on pages 64 to 69.

Statement by the Chairman

A key driver of the remuneration policy is that fees payable to Directors should be sufficient to attract and retain individuals with

suitable knowledge and experience.

The basis for determining the level of any change in Directors’ remuneration in set out in the Directors’ Remuneration Policy below.

No discretionary fees have been paid to the Directors during the year and the payment of such fees is expected to only be necessary

in exceptional circumstances. Any discretionary fees will be clearly disclosed in the Directors’ Remuneration Report accompanied by

an explanation of the work undertaken and why it was deemed necessary to pay such additional remuneration.

Remuneration Committee

The Board as a whole fulfils the function of the remuneration committee and considers any change in the Directors’ Remuneration

Policy. Given the size of the Board, it is not considered appropriate for the Directors to have a separate committee and it has

therefore not been established. The Company’s Directors are all non-executive and are independent of the Investment Manager.

TheCompany has no employees.

Directors’ Remuneration Policy

The Directors’ Remuneration Policy (the “Policy”), detailed below, is put to Shareholders’ vote at least once every three years and

in any year if there is to be a change in Policy. In determining the Policy, the Board takes into account all factors which it deems

necessary including relevant legal and regulatory requirements and the provisions and recommendations of the AIC Code. The

appropriateness and relevancy of the Policy is reviewed annually, particularly to ensure that the Policy supports the long-term

success of the Company.

Companies are required to ask Shareholders to approve the annual remuneration report, which includes the annual remuneration

paid to Directors, each year and to formally approve the Directors’ Remuneration Policy on a three-yearly basis. Any change to

theDirectors’ Remuneration Policy requires Shareholders approval. The vote on the Directors’ Remuneration Report is an advisory

vote, whilst the Directors’ Remuneration Policy is subject to a binding vote.

A resolution to approve the Policy was proposed and approved by Shareholders at the AGM on the Company held on 25 January

2022. A Statement of Voting is on page 61.

This Remuneration Report will be proposed to Shareholders at the forthcoming AGM.

Current Policy

The Board’s policy is that the remuneration of Directors should be fair and reasonable in relation to that of other comparable

investment companies and be sufficient to retain and motivate appointees, as well as ensure that candidates of a high calibre

are recruited to the Board. Remuneration levels should properly reflect time incurred and responsibility undertaken. Fees for the

Directors are determined by the Board within the limits stated in the Company’s Articles of Association. The maximum currently

dictated by the Company’s Articles of Association is £250,000 in aggregate per annum. Directors do not have service contracts.

Directors are appointed under letters of appointment, copies of which are available for inspection at the registered office of

theCompany.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Directors’ Remuneration Report

(continued)

Directors are entitled to be reimbursed for any reasonable expenses properly incurred by them in connection with the performance

of their duties and attendance at board and general meetings and committee meetings. Also, the Directors may, in the furtherance of

their duties, take legal advice at the Company’s expense, having first consulted with the Chairman.

Directors are not eligible for bonuses, pension benefits, share options or other incentives or benefits. There are no agreements between

the Company and its Directors concerning compensation for loss of office. The same principles will apply to any new appointments.

The Directors’ fees are subject to regular review by the Board having regard to the above factors. The Company’s Articles also

provide that additional discretionary payments can be made for services which in the opinion of the Directors are outside the scope

of the ordinary duties of a Director.

Component Parts of the Directors’ Remuneration

Year ended 30 September 2022 Year ended 30 September 2021

£ £

Chairman’s base fee 38,000 36,000

Non-executive Director base fee 28,000 27,000

Additional fee for the Chairman of the Audit Committee 3,500 3,000

Additional fee for the Senior Independent Director 1,000 1,000

It is the Company’s policy that the Chairman, the Chairman of the Audit Committee and Senior Independent Director be paid higher

fees to reflect their more additional responsibilities.

Implementation of the Policy

The determination of the level of fees paid to Directors, which are reviewed on a periodic basis, is dealt with by the whole Board as it is

not considered appropriate for the Company to have a separate Remuneration Committee as all the Directors are Non-Executive. It is

therefore practice for the Board as a whole to approve Director’s remuneration, at its discretion, within an aggregate limit of £250,000 per

annum as stipulated in the Company’s Articles of Association. Each Director abstains from voting on their own individual remuneration.

As the Company has no Chief Executive Officer and no employees, and the Board is comprised solely of Non-Executive Directors,

we have not therefore reported on those aspects of remuneration that relate to executive Directors. There is also no consultation of

employees required, and there is no employee comparative data to provide, in relation to the setting of the Policy.

Since the year end, the Board carried out a review of the level of fees in accordance with the current Remuneration Policy. Directors’

fees were last increased in October 2021. Following the Board’s annual review of Directors’ fees against those of the Company’s peer

group and the average for similar-sized investment trusts. As part of this review it was concluded that there would be no increase in

Directors’ fees at present.

No advice or services were provided by any external agencies or third parties.

There will be no significant change in the way the Policy will be implemented in the course of the next financial year.

Any views expressed by Shareholders on the fees being paid to Directors would be taken into consideration by the Board when

reviewing the Director’s Remuneration Policy and in the annual review of Directors’ fees.

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Directors’ Remuneration Report

(continued)

Directors’ Emoluments for the Year (audited)

The Directors who served during the year received the following emoluments:

Year ended 30 September 2022 Year ended 30 September 2021

Fees Expenses* Total Fees Expenses Total % Change

Frances Daley 38,000 — 38,000 36,000 — 36,000 5.6%

Vivien Gould 28,000 643 28,643 27,000 647 27,647 3.6%

Christopher Granville 28,000 — 28,000 27,000 — 27,000 3.7%

Calum Thomson 31,500 — 31,500 30,000 — 30,000 5.0%

Nadya Wells 29,000 1,247 30,247 28,000 597 28,597 5.8%

Total 154,500 1,890 156,390 148,000 1,244 149,244

*The Directors are entitled to claim travel expenses to meetings.

Fees for any new Director appointed will be made in accordance with the Remuneration Policy. Fees payable in respect of subsequent

years will be determined following an annual review.

Percentage increase in Remuneration

Over the last three years, Directors’ pay has increased as set out below:

2022 2021 2020 From 2021 to 2022 From 2020 to 2021

£ £ £ % Change % Change

Frances Daley 38,000 36,000 35,250 5.6% 2.1%

Vivien Gould 28,000 27,000 26,500 3.7% 1.9%

Christopher Granville 28,000 27,000 26,500 3.7% 1.9%

Calum Thomson 31,500 30,000 29,375 5.0% 2.1%

Nadya Wells 29,000 28,000 27,250 3.6% 2.8%

154,500 148,000 144,875

Directors’ Beneficial Shareholdings (Audited)

There is no requirement under the Company’s Articles or the terms of appointment for Directors to hold shares in the Company.

The beneficial interests of the Directors and any persons closely associated in the shares of the Company are set out in the belowtable:

At 30 September 2022

Director Number of Ordinary Shares % Interest in Share Capital

Frances Daley 6,000 0.039

Vivien Gould 3,250 0.021

Christopher Granville — —

Calum Thomson 7,072 0.046

Nadya Wells — —

There have been no changes to the number of Ordinary Shares held by the Directors since the year-end and the date of this Report. There

is no requirement under the Company’s Articles or the terms of appointment for Directors to hold Ordinary Shares in theCompany.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Relative Importance of Spend on Pay

The following table compares the remuneration paid to the Directors with aggregate distributions to Shareholders in the year to

30September 2022 and the prior year. This disclosure is a statutory requirement.

Year ended 30 September 2022 Year ended 30 September 2021

£’000 £’000 % Change

Aggregate Shareholders

distributions in respect of the year

2,043 3,057 (33.2)%

Aggregate share buybacks 715 1,715 (58.3)%

Statement of Voting at the Annual General Meeting

The Directors’ Remuneration Policy was approved at the AGM of the Company held on 25 January 2021 and the Directors’

Remuneration Report for the year ended 30 September 2021 was approved by Shareholders at the AGM held on 25 January 2022.

This resolution for the approval of the Remuneration Report was passed on a poll. The results of which are as follows:

REMUNERATION REPORT Number of Votes % of Votes Cast

For 5,968,208 99.67

Against 19,807 0.33

At Chairman’s discretion 2,250 0

Total votes cast 5,990,828 0

Withheld 563 0

This resolution for the approval of the remuneration policy was passed on a show of hands. The votes cast were as follows:

REMUNERATION POLICY Number of Votes % of Votes Cast

For 5,968,208 99.67

Against 19,807 0.33

At Chairman’s discretion 2,250 0

Total votes cast 5,990,828 0

Withheld 563 0

Directors’ Service Contracts

No Director has a service contract with the Company. Each Director has entered into terms of appointment as a Non-Executive

Director of the Company. There are no agreements between the Company and its Directors concerning compensation for loss

of office. The terms of their appointment provide that Directors shall retire and be subject to election at the first AGM after their

appointment. Thereafter, they will be subject to annual re-election. Compensation will not be made for loss of office.

Directors’ Remuneration Report

(continued)

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Share Price Performance (not audited)

The following graph compares the share price and NAV performance against the Benchmark:

Ten Year Performance Versus Benchmark (not audited)

Approval

The Directors Remuneration Report was approved by the Board of Directors on 3 December 2022.

For and on behalf of the Board

Frances Daley

Chairman

7 December 2022

NAV Total Return, net of fees

Share Price Total Return

Benchmark

100

110

120

130

140

150

160

170

Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21

Sep-22

Directors’ Remuneration Report

(continued)

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Directors’ responsibilities

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and

regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected

to prepare the financial statements in accordance with UK Accounting Standards and applicable law, including FRS 102 “The Financial

Reporting Standard applicable in the UK and Republic of Ireland”.

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of

the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether they have been prepared in accordance with applicable UK Accounting Standards subject to any material departures

disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in

business; and

• prepare a Director’s report, a strategic report and Director’s remuneration report which comply with the requirements of the Companies

Act 2006.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions

and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial

statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for

taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for ensuring that the annual report and accounts, taken as a whole, are fair, balanced, and understandable and

provides the information necessary for Shareholders to assess the Company’s position and performance, business model andstrategy.

Website publication

The Financial Statements are published on the Company’s website: www.bemoplc.com, which is maintained by the Investment

Manager. The maintenance and integrity of the website maintained by the Investment Manager is, so far as it relates to the Company, the

responsibility of the Investment Manager. Legislation in the UK governing the preparation and dissemination of financial statements may

differ from legislation in other jurisdictions. The Directors' responsibility also extends to the ongoing integrity of the financial statements

contained therein.

Directors’ responsibilities pursuant to DTR4

The Directors confirm to the best of their knowledge:

• the financial statements have been prepared in accordance with applicable UK Accounting Standards and give a true and fair view of the

assets, liabilities, financial position and profit of the Company; and

• the annual report includes a fair review of the development and performance of the business and the financial position of the Company,

together with a description of the principal risks and uncertainties that they face.

For and on behalf of the Board

Frances Daley

Chairman

7 December 2022

Statement of Directors’ Responsibilities in Respect of

the Annual Report and the Financial Statements

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Opinion on the financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the Company’s affairs as at 30 September 2022 and of its loss for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting practice;

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of Barings Emerging EMEA Opportunities PLC (the ‘Company’) for the year ended

30September 2022 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity,

and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework

that has been applied in their preparation is applicable law and United Kingdom accounting standards, including financial reporting

Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted

Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements

section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion. Our audit opinion is consistent with the additional report to the audit committee.

Independence

Following the recommendation of the audit committee, we were re-appointed by the members at the AGM on 25 January 2022

to audit the financial statements for the year ended 30 September 2022 and subsequent financial periods. The period of total

uninterrupted engagement including retenders and reappointments is four years, covering the years ending 30 September 2019

to 30 September 2022. We remain independent of the Company in accordance with the ethical requirements that are relevant to

our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and

we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services prohibited by that

standard were not provided to the Company.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the

preparation of the financial statements is appropriate. Our evaluation of the Directors’ assessment of the Company’s ability to

continue to adopt the going concern basis of accounting included:

• Evaluating the Director’s method of assessing going concern in light of market volatility and present uncertainties including the

conflict in Ukarine;

• Assessing the appropriateness of the Directors’ assumptions and judgements made in their base case and stress tested forecasts

including consideration of the available cash resources, including liquidity, relative to forecast expenditure and committments;

• Checking the accuracy of historical forecasting by agreeing to actual results; and

• Calculating financial ratios to ascertain the financial health of the Company.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,

individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a period of at least

twelve months from when the financial statements are authorised for issue.

In relation to the Company’s reporting on how it has applied the UK Corporate Governance Code, we have nothing material to add

or draw attention to in relation to the Directors’ statement in the financial statements about whether the Directors considered it

appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of

this report.

Independent Auditor’s Report

to the members of Barings Emerging EMEA Opportunities PLC

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Overview

KEY AUDIT MATTERS Valuation and Ownership of Investments

2022



2021



MATERIALITY £750,000 (2021: £1,110,000) based on 1% (2021: 1%) of net assets

An overview of the scope of our audit

Our audit was scoped by obtaining an understanding of the Company and its environment, including the Company’s system of internal

control, and assessing the risks of material misstatement in the financial statements. We also addressed the risk of management

override of internal controls, including assessing whether there was evidence of bias by the Directors that may have represented a risk

of material misstatement.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial

statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud)

that we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit,

and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements

as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Independent Auditor’s Report

(continued)

KEY AUDIT MATTER How the scope of our audit addressed the key audit matter

Valuation and ownership

of investments (Notes 1

and 8)

The investment portfolio

at the year-end comprised

of listed equity investments

held at fair value through

profit or loss, and valued

at £nil in the case of

companies listed on a

Russian exchange.

We considered the

valuation and ownership of

investments to be the most

significant audit areas as

investments represent the

most significant balance

in the financial statements

and underpin the principal

activity of the Company.

Furthermore, we considered

the valuation disclosures to

be a significant area as they

are expected to be a key

area of interest for the users

of the financial statements.

We have responded to this matter by testing the valuation

and ownership of 100% of the portfolio of investments. We

performed the following procedures:

• confirmed the year end bid price used by agreeing to

externally quoted prices and for all investments, assessed if

there were contra indicators, such as liquidity considerations,

to suggest that bid price is not the most appropriate indication

of fair value.

• obtained direct confirmation from the custodian regarding the

existence all of investments held at the balance sheet date.

• agreed the holding value of companies listed on a Russian

exchange at £nil in the accounts at year-end.

We also considered the completeness, accuracy and clarity

of investment-related disclosures against the requirements of

relevant accounting standard.

Key observations:

Based on our procedures performed we did not identify

any matters to suggest that the valuation or ownership of

investments was inappropriate.

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Our application of materiality

We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements. We

consider materiality to be the magnitude by which misstatements, including omissions, could influence the economic decisions of

reasonable users that are taken on the basis of the financial statements.

In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality

level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will

not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements, and the particular

circumstances of their occurrence, when evaluating their effect on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality

as follows:

Independent Auditor’s Report

(continued)

COMPANY FINANCIAL STATEMENTS

2022

£’000

2021

£’000

Materiality 750 1,110

Basis for determining

materiality

1 % of Net assets 1% of Net assets

Rationale for the

benchmark applied

As an investment trust, the net asset value is the key measure of performance for users of the

financial statements.

Performance materiality 570 830

Basis for determining

performance materiality

75% of materiality based on our risk assessment and consideration of the control environment.

Lower testing threshold

We determined that for items impacting revenue return, a misstatement of less than materiality for the financial statements as a whole,

could influence users of the financial statements. As a result, we determined a lower testing threshold for these items to be £250,000

(2021: £345,000) based on 10% (2021: 10%) of revenue return before tax.

Reporting threshold

We agreed with the Audit Committee that we would report to them all individual audit differences in excess of £12,000 (2021: £17,000).

We also agreed to report differences below this threshold that, in our view, warranted reporting on qualitative grounds.

Other information

The directors are responsible for the other information. The other information comprises the information included in the Annual Report

other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other

information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion

thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially

inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially

misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this

gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Independent Auditor’s Report

(continued)

Corporate governance statement

The Listing Rules require us to review the Directors’ statement in relation to going concern, longer-term viability and that part of the

Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK Corporate Governance Code

specified for our review.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate

Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit.

Going concern and

longer-term viability

• The Directors' statement with regards the appropriateness of adopting the going concern basis of

accounting and any material uncertainties identified set out on page 54; and

• The Directors’ explanation as to their assessment of the Company’s prospects, the period this

assessment covers and why the period is appropriate set out on pages 30 and 31.

Other Code provisions • Directors’ statement on fair, balanced and understandable set out on page 57;

• Board’s confirmation that it has carried out a robust assessment of the emerging and principal

risks set out on page 9;

• The section of the annual report that describes the review of effectiveness of risk management

and internal control systems set out on pages 55 and 56; and

• The section describing the work of the audit committee set out on pages 55 and 56.

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Other Companies Act 2006 reporting

Based on the responsibilities described below and our work performed during the course of the audit, we are required by the

Companies Act 2006 and ISAs (UK) to report on certain opinions and matters as described below.

Strategic report and

Directors’ report

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Strategic report and the Directors’ report for the financial year for

which the financial statements are prepared is consistent with the financial statements; and

• the Strategic report and the Directors’ report have been prepared in accordance with applicable

legal requirements.

In the light of the knowledge and understanding of the Company and its environment obtained in

the course of the audit, we have not identified material misstatements in the strategic report or the

Directors’ report.

Directors’ remuneration In our opinion, the part of the Directors’ remuneration report to be audited has been properly

prepared in accordance with the Companies Act 2006.

Matters on which we are

required to report by

exception

We have nothing to report in respect of the following matters in relation to which the Companies

Act 2006 requires us to report to you if in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not

been received from branches not visited by us; or

• the financial statements and the part of the Directors’ remuneration report to be audited are not

in agreement with the accounting records and returns; or

• certain disclosures of Directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Independent Auditor’s Report

(continued)

Responsibilities of Directors

As explained more fully in the statement of Directors’ responsibilities, the Directors are responsible for the preparation of the financial

statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is

necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company’s ability to continue as a going concern,

disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either

intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a

high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our

responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our

procedures are capable of detecting irregularities, including fraud is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the Company and industry in which it operates, and

considered the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud. We considered the

significant laws and regulations to be the Companies Act 2006, the UK Listing Rules, the DTR rules, the principles of the UK Corporate

Governance Code, FRS 102, VAT and other taxes. We also considered the Company’s qualification as an Investment Trust under UK

taxlegislation.

We assessed the susceptibility of the financial statements to material misstatement, including fraud and considered the fraud risk area

to be management override of controls.

Our tests included:

• Agreement of the financial statement disclosures to underlying supporting documentation;

• Obtaining an understanding of the control environment in monitoring compliance with laws and regulations;

• Enquiries of management and those charged with governance relating to the existence of any non-compliance with laws and

regulations or any known or suspected instances of fraud;

• Testing the appropriateness of journal entries in the general ledger which met a defined risk criteria and adjustments made in the

preparation of the financial statements, reviewing accounting estimates for possible bias and obtaining an understanding of the

business rationale of significant transactions that are outside the normal course of the business for the Company and those that

appear to be unusual by agreeing to supporting documentation; and

• Review of minutes of Board Meetings throughout the period for any instances of non-compliance with laws and regulations or any

known or suspected instances of fraud.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and

remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Independent Auditor’s Report

(continued)

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk

of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may

involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the

audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions

reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at:

www.frc.org.uk/auditorsresponsibilities.

This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.

Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to

them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility

to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we

have formed.

Peter Smith (Senior Statutory Auditor)

For and on behalf of BDO LLP, Statutory Auditor

London, UK

7 December 2022

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Year ended 30 September 2022 Year ended 30 September 2021

Revenue Capital Total Revenue Capital Total

Notes £’000 £’000 £’000 £’000 £’000 £’000

(Losses)/gains on investments

held at fair value through

profit or loss 8 (34,402) (34,402) — 28,381 28,381

Foreign exchange gains/(losses) — 190 190 — (245) (245)

Income 2 3,440 — 3,440 4,488 — 4,488

Investment management fee 3 (133) (533) (666) (149) (598) (747)

Other expenses 4 (790) (1) (791) (888) (62) (950)

Return on ordinary activities 2,517 (34,746) (32,229) 3,451 27,476 30,927

Finance costs — — — — — —

Return on ordinary

activities before taxation 2,517 (34,746) (32,229) 3,451 27,476 30,927

Taxation 5 (503) — (503) (539) — (539)

Return for the year 2,014 (34,746) (32,732) 2,912 27,476 30,388

Return per ordinary share 7 16.77p (289.37p) (272.60p) 23.86p 225.16p 249.02p

The total column of this statement is the income statement of the Company.

The supplementary revenue and capital columns are both prepared under the guidance published by the AIC.

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 year is also the total comprehensive income for the year.

The notes on pages 73 to 86 form part of these financial statements.

Income Statement

for the year ended 30 September 2022

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

At At

30 September 30 September

2022 2021

Notes £’000 £’000

Fixed assets

Investments at fair value through profit or loss 8 75,059 109,233

Current assets

Debtors 9 467 667

Cash and cash equivalents 233 1,664

700 2,331

Current liabilities

Creditors: amounts falling due within one year 10 (351) (666)

Net current assets

349 1,665

Net assets 75,408 110,898

Capital and reserves

Called-up share capital 11 1,525 1,536

Capital redemption reserve 3,263 3,252

Share premium 1,411 1,411

Capital reserve 67,018 102,479

Revenue reserve 2,191 2,220

Total equity

75,408 110,898

Net asset value per share

12 632.08p 920.71p

Number of shares in issue excluding treasury 11,930,201 12,044,780

The Financial Statements on pages 70 to 72 were approved and authorised for issue by the Board of Barings Emerging EMEA

Opportunities PLC on 7 December 2022 and were signed on its behalf by:

Frances Daley

Chairman

Company registration number: 04560726

The notes on pages 73 to 86 form part of these financial statements.

Statement of Financial Position

as at 30 September 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Called-up Capital Share

share redemption premium Capital Revenue

capital reserve account reserve reserve Total

£’000 £’000 £’000 £’000 £’000 £’000

For the year ended 30 September 2022

Opening balance as at 1 October 2021 1,536 3,252 1,411 102,479 2,220 110,898

Return for the year — — — (34,746) 2,014 (32,732)

Contributions by and distributions

to Shareholders:

Repurchase of Ordinary Shares (11) 11 — (715) — (715)

Dividends paid — — — — (2,043) (2,043)

Total contributions by and distributions

to Shareholders: (11) 11 — (715) (2,043) (2,758)

Balance at 30 September 2022

1,525 3,263 1,411 67,018 2,191 75,408

Called-up Capital Share

share redemption premium Capital Revenue

capital reserve account reserve reserve Total

£’000 £’000 £’000 £’000 £’000 £’000

For the year ended 30 September 2021

Opening balance as at 1 October 2020 1,559 3,229 1,411 76,718 2,365 85,282

Return for the year — — — 27,476 2,912 30,388

Contributions by and distributions

to Shareholders:

Repurchase of Ordinary Shares (23) 23 — (1,715) — (1,715)

Dividends paid — — — — (3,057) (3,057)

Total contributions by and distributions

to Shareholders: (23) 23 — (1,715) (3,057) (4,772)

Balance at 30 September 2021 1,536 3,252 1,411 102,479 2,220 110,898

At 30 September 2022, the distributable reserves of the Company were £61,870,000 which comprise of the revenue reserve

£2,191,000 and realised capital reserves of £61,870,000. Unrealised gains of £5,147,000 are non distributable. (2021: distributable

reserves of £86,658,000 comprising of revenue reserve of £2,220,000 and realised capital reserves of £84,438,000; the balance

consists of £18,041,000 of unrealised gains and is not distributable).

All investments are held at fair value through profit or loss. When the Company revalues the investments still held during the period,

any gains or losses arising are credited/charged to the capital reserve.

The notes on pages 73 to 86 form part of these financial statements.

Statement of Changes in Equity

for the year ended 30 September 2022

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

1. Accounting policies

Barings Emerging EMEA Opportunities PLC (the “Company”) is a company incorporated and registered in England and Wales.

The principal activity of the Company is that of an investment trust company within the meaning of Sections 1158/159 of the

Corporation Tax Act 2020 and its investment approach is detailed in the Strategic Report.

Basis of preparation

The financial statements are prepared in accordance with the Companies Act 2006, United Kingdom Generally Accepted

Accounting Practice (‘UK GAAP’), including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of

Ireland’ and with the Statement of Recommended Practice ‘Financial Statements of Investment Trust Companies and Venture

Capital Trusts’ (the ‘SORP’) issued by the Association of Investment Companies, October 2019.

The Company meets the requirements of section 7.1A of FRS 102 and therefore has elected not to present the Statement of Cash

Flows for the year ended 30 September 2022.

The policies applied in these financial statements are consistent with those applied in the preceding year.

Going concern

The financial statements have been prepared on a going concern basis and on the basis that approval as an investment trust

company will continue to be met.

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 twelve months from the date when

these financial statements were approved.

In making the assessment, the Directors of the Company have considered the likely impacts of international and economic

uncertainties on the Company, operations and the investment portfolio. These include, but are not limited to, the impact of

COVID-19, the war in Ukraine, political and economic instability in the UK, supply shortages and inflationary pressures.

The Directors noted that the Company holds a portfolio of liquid listed investments and cash. The Directors are of the view

that the Company is able to meet its obligations and when they fall due. The surplus cash enables the Company to meet any

funding requirements and finance future additional investments. The Company is managing the NAV discount to the share price

through share buybacks. The impact of buybacks through purchasing shares at a discount to NAV provides additional returns to

shareholders as the earnings per share are enhanced through the reduction of share capital. The Company is a closed-end fund,

where assets are not required to be liquidated to meet day-to-day redemptions.

The Directors have completed stress tests assessing the impact of changes in market value and income with associated cash

flows. In making this assessment, they have considered plausible downside scenarios including the impact of inflation at 20%

and simulated a 50% reduction in NAV during January 2023 with no income or capital growth. The conclusion was that in a

plausible downside scenario the Company could continue to meet its liabilities. Whilst the economic future is uncertain, and

the Directors believe that it is possible the Company could experience further reductions in income and/or market value, and

changes in expenses, the opinion of the Directors is that this should not be to a level which would threaten the Company’s ability

to continue as a going concern.

The Directors 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.

Segmental reporting

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

Notes to the Financial Statements

for the year ended 30 September 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

1. Accounting policies (continued)

Significant accounting judgements and estimates

The preparation of the Company’s financial statements on occasion requires the Board to make judgements, estimates and

assumptions that affect the reported amounts in the primary financial statements and the accompanying disclosures. These

assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or

liabilities affected in the current and future periods, depending on the circumstance.

The areas requiring judgement and estimation in the preparation of the financial statements are: recognising and classifying

unusual or special dividends received as either revenue or capital in nature; the determination of the carrying value of unquoted

investments through profit or loss; recognition of expenses between capital and income; capital expenses and setting of the

level of dividends paid and proposed. Russian investments held directly or through other exchanges are valued at nil due to being

unable to realise value in the securities. Dividends are accounted on a receipts basis and prior years withholding tax has been

fully provided. The policies for these are set out in the notes to the Financial Statements.

The Directors do not believe that any significant accounting judgements or estimates have been applied to this set of financial

statements, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the

next financial year.

Investments

Upon initial recognition the investments held by the Company are classified ‘at fair value through profit or loss’. All gains and

losses are allocated to the capital return within the Income Statement as ‘Gains on investments held at fair value through profit

or loss’. Also included within this are transaction costs in relation to the purchase or sale of investments. When a purchase or

sale is made under a contract, the terms of which require delivery within the timeframe of the relevant market, the investments

concerned are recognised or derecognised on the trade date. Subsequent to initial recognition, investments are valued at fair

value through profit or loss. For listed investments this is deemed to be bid market prices. Fair values for unquoted investments,

or for investments for which the market is inactive, or restrictions on realisation, are established by the Directors after discussion

with the AIFM using various valuation techniques in accordance with the International Private Equity and Venture Capital (the

“IPEV”) guidelines. Russian investments held directly or through other exchanges are valued at nil.

Foreign Currency

The Company is required to identify its functional currency, being the currency of the primary economic environment in which

the Company operates. The Board, having regard to the Company’s share capital and the predominant currency in which its

Shareholders operate, has determined that Pounds Sterling is the functional currency. Pounds Sterling is also the currency in

which the financial statements are presented.

Transactions denominated in currencies other than Pounds Sterling are recorded at the rates of exchange prevailing on the

date of the transaction. Items that are denominated in foreign currencies are translated at the rates prevailing on the Balance

Sheet date. Any gains or loss arising from a change in exchange rate subsequent to the date of the transaction is included as an

exchange gain or loss in the capital reserve or the revenue account depending on whether the gain or loss is capital or revenue

in nature.

Cash and Cash Equivalents

Cash comprises cash in hand and demand deposits.

Trade Receivables, Prepayments and Other debtors

Trade receivables, prepayments and other debtors are recognised at amortised cost.

Trade Payables and Borrowings

Trade payables and short-term borrowings are measured at amortised cost.

Notes to the Financial Statements

(continued)

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

1. Accounting policies (continued)

Income

Dividends receivable from equity shares are included in revenue return on an ex-dividend basis except where, in the opinion of

the Board, the dividend is capital in nature, in which case it is included in capital return. Where restrictions apply on dividends and

the realisation of cash the dividend recorded upon the receipt of cash.

Overseas dividends are included gross of any withholding tax.

Special dividends are taken to the revenue or capital account depending on their nature. In deciding whether a dividend should

be regarded as a capital or revenue receipt, the Board reviews all relevant information as to the sources of the dividend on a

case-by-case basis.

Expenses and finance costs

All expenses are accounted for an on an accruals basis. On the basis of the Board’s expected long-term split of total returns in

the form of capital and revenue and are charged as follows:

• the investment management fee is charged 20% to revenue and 80% to capital;

• any investment performance bonus payable to the AIFM are charged wholly to capital;

• finance costs are charged 20% to revenue and 80% to capital; and

• other expenses are charged wholly to revenue.

Taxation

Current tax is provided at the amounts expected to be paid or recovered.

Deferred tax is provided on all timing differences that have originated but not reversed by the balance sheet date. Deferred tax

liabilities are recognised for all taxable timing differences but deferred tax assets are only recognised to the extent that it is more

likely than not that taxable profits will be available against which those timing differences can be utilised.

Deferred tax is measured at the tax rate which is expected to apply in the periods in which the timing differences are expected

to reverse, based on tax rates that have been enacted or substantively enacted at the balance sheet date and is measured on an

undiscounted basis.

Dividends payable to Shareholders

Dividends are not recognised in the accounts unless there is an obligation to pay or have been paid.

Capital redemption reserve

The capital redemption reserve represents non-distributable reserves that arise from the purchase and cancellation of Ordinary Shares.

Share premium

The share premium account represents the accumulated premium paid for shares issued in previous periods above their nominal value

less issue expenses. This is a reserve forming part of the non-distributable reserves. The following items are taken to this reserve:

• costs associated with the issue of equity; and

• premium on the issue of shares.

Capital reserve

The following are taken to capital reserve through the capital column of the Income Statement:

Capital reserve — other, forming part of the distributable reserves

• gains and losses on the disposal of investments;

• amortisation of issue of interest bearing bank loans;

• exchange differences of a capital nature;

Notes to the Financial Statements

(continued)

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

1. Accounting policies (continued)

Capital reserve — other, forming part of the distributable reserves (continued)

• expenses, together with the related taxation effect, allocated to this reserve in accordance with the above policies; and

• distribution of dividends.

Capital reserve — investment holding gains, non-distributable

• increase and decrease in the valuation of investments held at the year end, including provisions.

Revenue reserve

The revenue reserve represents the surplus of accumulated profits and is distributable by way of dividends.

2. Income

2022 2021

£’000 £’000

Income from investments:

Listed investments 3,452 4,493

Other income:

Bank interest 1 —

Exchange losses on receipt of income (13) (5)

Total income

3,440 4,488

All income stated above is revenue in nature.

3. Investment management fee

Baring Fund Managers Limited has been appointed as the AIFM under an agreement with six months notice by either party.

The annual fee of 0.75% (0.80% prior to 13 November 2020) is calculated, in accordance with the Investment Management

Agreement, on the month end NAV excluding current period revenue and payable monthly. The charge is allocated 20% (2021:

20%) to revenue and 80% (2021: 80%) to capital. There is no performance fee chargeable by the AIFM.

The investment management fee comprises:

Year ended 30 September 2022 Year ended 30 September 2021

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

Investment management fee 133 533 666 149 598 747

At 30 September 2022, £46,000 (30 September 2021: £136,000) of this fee remained outstanding.

4. Other expenses

2022 2021

£’000 £’000

Custody and administration expenses

596 710

Auditor’s fee for:

— audit 40 30

Directors’ remuneration 154 148

Total expenses 790 888

Notes to the Financial Statements

(continued)

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

5. Taxation

The taxation assessed for the year is higher (2021: lower) than the standard rate of corporation tax in the UK of 19% (2021: 19%).

The differences are explained below:

Current tax charge for the year:

2022 2021

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

Overseas tax not recoverable 503 — 503 542 — 542

Overseas tax recovered and deemed

recoverable - previously expensed — — — (3) — (3)

503 — 503 539 — 539

Factors affecting the current tax charge for the year

The taxation rate assessed for the year is different from the standard rate of corporation taxation in the UK. The differences are

explained below:

2022 2021

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

Return on ordinary activities

before taxation 2,517 (34,746) (32,229) 3,451 27,476 30,927

Return on ordinary activities multiplied

by the standard rate of corporation tax

of 19% (2021: 19%) 478 (6,602) (6,124) 656 5,220 5,876

Effects of:

Irrecoverable overseas withholding tax 299 — 299 542 — 542

Write off of overseas withholding tax

previously treated as recoverable 204 — 204 (3) — (3)

(Gains)/losses on investments held at fair

value through profit and loss not allowable — 6,536 6,536 — (5,387) (5,387)

Foreign exchange (gain)/loss not

taxable/allowable 3 (36) (33) 1 41 42

Overseas dividends not taxable (656) — (656) (854) — (854)

Disallowable expenses — 1 1 — — —

Management expenses not utilised 175 101 276 197 126 323

Current tax charge for the year 503 — 503 539 — 539

The Company is not liable to tax on capital gains due to its status as an investment trust.

At 30 September 2022, the Company has unrelieved management expenses that are available to offset future taxable revenue.

A deferred tax asset of £4,258,000 (2021: £3,894,000) is based on the enacted UK corporation tax rate of 25% that applies from

1April 2023, has not been recognised because the Company is not expected to generate sufficient taxable income in future

periods in excess of the available deductible expenses and, accordingly, the Company is unlikely to be able to reduce future tax

liabilities through the use of existing surplus losses.

Deferred tax is not provided on capital gains and losses arising on the revaluation or disposal of investments because the

Company meets (and intends to continue for the foreseeable future to meet) the conditions for approval as an investment

trustcompany.

Notes to the Financial Statements

(continued)

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

6. Dividend on Ordinary Shares

2022 2021

Revenue Revenue

£’000 £’000

Amounts recognised as distributions to equity holder in the year:

Final dividend for the year ended 30 September 2021 of 11p (2020: 10p) per Ordinary Share 1,322 1,224

Interim dividend for the year ended 30 September 2022 of 6p (2021: 15p) per Ordinary Share 721 1,833

2,043 3,057

Set out below are the interim and final dividends paid or proposed on Ordinary Shares in respect of the financial year, which is

the basis on which the requirements of Section 1158 of the Corporation Tax Act 2010 are considered.

2022 2021

Revenue Revenue

£’000 £’000

Interim dividend for the year ended 30 September 2022 of 6p (2021: 15p) per Ordinary Share 721 1,833

Proposed final dividend for the year ended 30 September 2022 of 11p (2021: 11p) per Ordinary Share 1,304 1,322

2,025 3,155

The dividend proposed in respect of the year ended 30 September 2022 is subject to shareholder approval at the forthcoming

Annual General Meeting.

7. Return per Ordinary Share

Year ended 30 September 2022 Year ended 30 September 2021

Revenue Capital Total Revenue Capital Total

Return per Ordinary Share 16.77p (289.37)p (272.60)p 23.86p 225.16p 249.02p

Revenue return (earnings) per Ordinary Share is based on the net revenue on ordinary activities after taxation of £2,014,000

(2021: £2,912,000).

Capital return per Ordinary Share is based on net capital loss for the financial year of £34,746,000 (2021: gain £27,476,000).

These calculations are based on the weighted average of 12,007,165 (2021: 12,202,696) Ordinary Shares in issue during the

year. At 30 September 2022, there were 11,930,201 Ordinary Shares of 10 pence each in issue (2021: 12,044,780) which

excludes 3,318,207 Ordinary Shares held in treasury (2021: 3,318,207). The shares held in treasury are treated as not being in

issue when calculating the weighted average of Ordinary Shares in issue during the year.

Notes to the Financial Statements

(continued)

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

8. Investments

Financial assets held at fair value

30 September 2022 30 September 2021

£’000 £’000

Opening book cost 91,192 84,117

Opening investment holding gains/(losses) 18,041 (545)

Opening fair value

109,233 83,572

Movements in year:

Purchases at cost* 34,583 99,127

Sales proceeds* (34,355) (101,847)

Realised (losses)/gains on equity sales (1,043) 9,795

(Decrease)/increase in investment holding gains (33,359) 18,586

Closing fair value

75,059 109,233

Closing book cost 90,377 91,192

Closing investment holding (losses)/gains (15,318) 18,041

Closing fair value

75,059 109,233

* Includes transaction costs of £57,000 (2021: £205,000) relating to purchases at cost, £40,000 (2021: £82,000) relating to

sales proceeds.

Year ended Year ended

30 September 2022 30 September 2021

£’000 £’000

Transaction costs

Cost on acquisition 57 205

Cost on disposal 40 82

97 287

Analysis of capital gains

Gains on sales of financial assets (1,043) 9,795

Movement in investment holding gains for the year (33,359) 18,586

Net gains on investment (34,402) 28,381

The Company sold investments in the year with proceeds of £34,355,000 (2021: £101,847,000). The book cost of these

investments when purchased was £35,398,000 (2021: £92,052,000). These investments have been revalued over time and until

they were sold any unrealised gains or losses were included in the fair value of the investments.

Notes to the Financial Statements

(continued)

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

8. Investments (continued)

Primary country of investment

30 September 30 September

2022 2021

£’000 £’000

Saudi Arabia 25,126 19,536

South Africa 20,564 26,413

United Arab Emirates 8,282 4,892

Qatar 6,929 4,032

Poland

4,034 5,716

Hungary 2,730 2,795

Turkey 2,364 2,807

Kuwait 2,332 1,478

Greece 1,568 1,844

Czechia 1,130 974

Russia — 38,746

Total

75,059 109,233

9. Debtors

2022 2021

£’000 £’000

Overseas tax recoverable — 204

Prepayments and accrued income 285 356

VAT Recoverable 182 107

467 667

10. Creditors

2022 2021

£’000 £’000

Amounts falling due within one year

Amounts due to brokers 95 276

Other creditors 256 390

351 666

Notes to the Financial Statements

(continued)

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

11. Called-up share capital

30 September 2022 30 September 2021

Number £’000 Number £’000

Allotted, issued and fully paid up ordinary shares

of 10p each

Opening balance 15,362,987 1,536 15,594,232 1,559

Ordinary Shares bought back and cancelled (114,579) (11) (231,245) (23)

Total Ordinary Shares in issue 15,248,408 1,525 15,362,987 1,536

Treasury shares 3,318,207 3,318,207

Total Ordinary Share capital excluding treasury shares 11,930,201 12,044,780

During the year, 114,579 Ordinary Shares were repurchased for cancellation for £715,000 (2021: 231,245 Ordinary Shares

were £1,715,000). The Company holds 3,318,207 Ordinary Shares in treasury which are treated as not being in issue when

calculating the number of Ordinary Shares in issue during the year (2021: 3,318,207). Ordinary Shares held in treasury

are non¬voting and not eligible for receipt of dividends. Subsequent to the year end, a further 72,173 shares have been

repurchased for £377,000.

12. Net Asset Value per share

The NAV per Ordinary Share and the NAV attributable at the year end were as follows:

2022 2021

Total Shareholders’ funds (£’000)

75,408 110,898

Number of shares in issue* 11,930,201 12,044,780

NAV (pence per share) (basic and dilutive) 632.08 920.71

*Excludes 3,318,207 Ordinary Shares held in treasury (2021: 3,318,207).

The NAV per share is based on total Shareholders’ funds above, and on 11,930,201 Ordinary Shares in issue at the year end

(2021: 12,044,780 Ordinary Shares in issue) which excludes 3,318,207 Ordinary Shares held in treasury (2021: 3,318,207

Ordinary Shares held in treasury). The Ordinary Shares held in treasury are treated as not being in issue when calculating the

NAV per share.

Notes to the Financial Statements

(continued)

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

13. Financial Instruments and Capital Disclosures

Investment Objective and Policy

As an investment trust, the Company invests in equities and other investments for the long-term so as to secure its

investment objective stated on page 1. In pursuing its investment objective, the Company is exposed to a variety of risks that

could result in either a reduction in the Company’s net assets or a reduction of the profits available for dividends. With effect

from 13November 2020, the Company changed its investment objective and policy. The Objective and Investment Policy

are set out on pages 7 and 8.

Risks

The risks identified arising from the financial instruments are market risk (which comprises market price risk, interest rate risk,

and currency risk), liquidity risk and credit and counterparty risk. The Board and AIFM consider and review the risks inherent

in managing the Company’s assets which are detailed below.

The objectives, policies and processes for managing the risks, and the methods used to measure the risks, are set out below

and have not changed from the previous accounting period.

The AIFM monitors the Company’s exposure to risk and reports to the Board on a regular basis.

Market Risk

Special considerations and risk factors associated with the Company’s investments are discussed on pages 9 to 11. Market risk

arises mainly from uncertainty about future prices of financial instruments used in the Company’s business. It represents the

potential loss which the Company might suffer through holding market positions by way of price movements, interest rate

movements and exchange rate movements. The Company’s AIFM assesses the exposure to market risk when making each

investment decision, and monitors the overall level of market risk on the whole of the investment portfolio on an ongoing basis.

Market Price Risk

Market price risk (i.e. changes in market prices other than those arising from currency risk or interest rate risk) may affect the

value of investments.

The portfolio is managed with an awareness of the effects of adverse price movements through detailed and continuing

analysis with the objective of maximising overall returns to Shareholders. The Company has experienced volatility in the fair

value of investments during recent years due to COVID-19, Brexit, the war in Ukraine, the economic and political instability

in the UK. If the fair value of the Company’s investments at the year end increased or decreased by 20% then it would have

an impact on the Company’s capital return and equity of £15,012,000 (2021: £21,847,000).

The Company has used 20% to demonstrate the impact of a significant reduction/increase in the fair value of the

investments and the impact upon the Company that might arise from future significant events.

Notes to the Financial Statements

(continued)

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

13. Financial Instruments and Capital Disclosures (continued)

Currency Risk

The value of the Company’s assets and the total return earned by the Company’s Shareholders can be significantly affected

by currency exchange rate movements as most of the Company’s assets are denominated in currencies other than Pounds

Sterling, the currency in which the Company’s financial statements are prepared.

Income denominated in other currencies is converted to Pounds Sterling upon receipt. The Company does not use financial

instruments to mitigate the currency exposure. The Company’s uninvested cash balances are usually held in US Dollars.

A 10% rise or decline of Pounds Sterling against currency denominated (i.e. non Pounds Sterling) assets and liabilities held

at the year end would have increased/decreased the net asset value by £7,546,000 (2021: £11,110,000). The Company has

experienced volatility in UK exchange rates through the year and maintains current cash in USD .

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

Saudi Arabia

South Africa

UAE

Qatar

Poland

Hungary

Turkey

Kuwait

Greece

Czechia

United States

Russia

Total

SAR ZAR AED QAR PLN HUF TRY KWD EUR CZK USD GBP RUB

2022 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Cash 32 — — — — — — — — — 200 1 — 233

Debtor 88 22 — — 152 — — — — — — 205 — 467

Creditor — — — — — — — — — (94) — (257) — (351)

Investments 25,126 20,564 8,282 6,929 4,034 2,730 2,364 2,332 1,568 1,130 — — — 75,059

Total 25,246 20,586 8,282 6,929 4,186 2,730 2,364 2,332 1,568 1,036 200 (51) — 75,408

Russia

South Africa

Saudi Arabia

Poland

UAE

Qatar

Turkey

Hungary

Greece

Kuwait

Czechia

United States

Netherlands

Total

RUB ZAR SAR PLN AED QAR TRY HUF EUR KWD CZK USD EUR GBP

2021 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Cash 1 — — — — — — — — — — 1,585 — 78 1,664

Debtor 194 156 39 127 — — — — — — — — 40 111 667

Creditor — — (276) — — — — — — — — — — (390) (666)

Investments 38,746 26,413 19,536 5,716 4,892 4,032 2,807 2,795 1,844 1,478 974 — — — 109,233

Total 38,941 26,569 19,299 5,843 4,892 4,032 2,807 2,795 1,844 1,478 974 1,585 40 (201) 110,898

Notes to the Financial Statements

(continued)

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

13. Financial Instruments and Capital Disclosures (continued)

Interest Rate Risk

Interest rate movements may affect:

• the level of income receivable /payable on cash deposits

The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account

when making investment and borrowing decisions.

At 30 September 2022, the Company’s exposure to interest rate movements in respect of its financial assets and financial

liabilities consist of:

2022 2021

Total Total

(within one year) (within one year)

£’000 £’000

Exposure to floating interest rates:

Cash at bank 233 1,664

233 1,664

If the above level of cash was maintained for a year, a 1% increase in interest rates would increase the revenue return and net

assets by £2,000 (2021: £17,000). The AIFM proactively manages cash balances. If there were a fall of 1% in interest rates, it

would potentially impact the Company by turning positive interest to negative interest. The total effect would be a revenue

reduction/cost increase of £2,000 (2021: £17,000).

Liquidity risk

The Company’s assets mainly comprise readily realisable securities which can be easily sold to meet funding commitments, if

necessary. The risk is taken into account by the Board when arriving at its valuation of these items.

Liquidity risk is mitigated by the fact that the Company has £233,000 (2021: £1,664,000) cash at bank and the assets are readily

realisable. The Company is a closed-end fund, assets do not need to be liquidated to meet redemptions, and sufficient liquidity

is maintained to meet obligations as they fall due.

The remaining contractual payments on the Company’s financial liabilities at 30 September 2022, based on the earliest date on

which payment can be required and current exchange rates at the Balance Sheet date, were as follows:

2022 2021

£’000 £’000

Amounts falling due within one year

Amounts due to brokers 95 276

Other creditors 256 390

351 666

Credit Risk

Credit risk is the risk of financial loss to the Company if the contractual party to a financial instrument fails to meet its

contractual obligations.

The total credit exposure represents the carrying value of cash and receivable balances totals £700,000 (2021: £2,331,000).

Notes to the Financial Statements

(continued)

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

13. Financial Instruments and Capital Disclosures (continued)

Credit Risk (continued)

The Company’s listed investments are held on its behalf by State Street Bank & Trust Company Limited acting as the

Company’s Custodian. Bankruptcy or insolvency may cause the Company’s rights with respect to securities held by the

custodian to be delayed. The Board monitors the Company’s risk by reviewing the Custodians internal control reports.

Credit risk is mitigated by diversifying the counterparties through which the AIFM conducts investment transactions. The credit

standing of all counterparties is reviewed periodically, with limits set on amounts due from any one counterparty. As at the year

end, the cash balances were held with State Street Bank & Trust Company Limited, which holds a Aa1 credit rating. The credit

rating is taken from Moody’s.

Fair Values of Financial Assets and Financial Liabilities

Financial assets and financial liabilities are carried in the balance sheet as follows: investments at fair value; trade receivables,

prepayments and other debtors at amortised cost; and trade payables are measured at amortised cost. Russian investments

held directly on the Moscow exchange or through other exchanges are valued at £nil due to being unable to realise value in

the securities. Dividends are accounted on a receipts basis and prior years withholding tax has been fully provided.

Valuation of Financial Instruments

The Company measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in

making the measurements. Categorisation within the hierarchy has been determined on the basis of the lowest level input that

is significant to the fair value measurement of the relevant assets as follows:

Level 1 — valued using quoted prices unadjusted in active markets for identical assets or liabilities.

Level 2 — valued by reference to valuation techniques using observable inputs for the asset or liability other than quoted prices

included within Level 1.

Level 3 — valued by reference to valuation techniques using inputs that are not based on observable market data for the asset

orliability.

The tables below set out fair value measurements of financial assets and liabilities in accordance with the fair value hierarchy.

Financial assets at fair value through profit or loss at 30 September 2022:

Total

Level 1 Level 2 Level 3 2022

£’000 £’000 £’000 £’000

Equity investments 75,059 — — 75,059

75,059 — — 75,059

Financial assets at fair value through profit or loss at 30 September 2021:

Total

Level 1 Level 2 Level 3 2021

£’000 £’000 £’000 £’000

Equity investments 109,233 — — 109,233

109,233 — — 109,233

Notes to the Financial Statements

(continued)

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

14. Risk management policies and procedures

Capital Management Policies and Procedures

The structure of the Company’s capital is described on page 35 and details of the Company’s reserves are shown in the

Statement of Changes in Equity on page 72.

The Company’s capital management objectives are:

• to ensure that it will be able to continue as a going concern;

• to achieve capital growth through a focused portfolio of investments; and

• to maximise the return to Shareholders while maintaining a capital base to allow the Company to operate effectively and

meet obligations as they fall due.

The Board, with the assistance of the AIFM, regularly monitors and reviews the broad structure of the Company’s capital on

an ongoing basis. These reviews include:

• the level of gearing, which takes account of the Company’s position and the Investment Manager’s views on the market; and

• the extent to which revenue in excess of that which is required to be distributed, should be retained. The Company’s

objectives, policies and processes for managing capital are unchanged from last year. The Company is subject to externally

imposed capital requirements:

• as a public company, the Company is required to have a minimum share capital of £50,000; and

• in accordance with the provisions of Sections 832 and 833 of the Companies Act 2006, the Company, as an investment company;

• is only able to make a dividend distribution to the extent that the assets of the Company are equal to at least one and a half

times its liabilities after the dividend payment has been made; and

• is required to make a dividend distribution each year and to ensure after year that it does not retain more than 15% of the

income that it derives from shares and securities.

These policies and procedures are unchanged since last year and the Company has complied with them at all times.

15. Related Party Disclosures and Transactions with the AIFM

Details of the investment management fee charged by the AIFM are set out in note 3. Investment management fees charged

in the year were £666,000 (2021: £747,000) of which £46,000 (2021: £136,000) was outstanding at the year end.

The ultimate holding company of the AIFM is Massachusetts Mutual Life Insurance Company, 1295 State Street, Springfeld,

MA 01111-0001. Fees paid to the Directors and full details of Directors’ interests are disclosed in the Directors’ Remuneration

Report on pages 58 to 62.

During the period Nadya Wells was a member of the Supervisory Board of Sberbank of Russia (“Sberbank”), in which the

Company was invested. The Company sold 676,680 shares for £1,214,000 during the financial year. These transactions were

completed through the open market. Nadya Wells resigned as an independent director of the supervisory board of Sberbank

of Russia with effect from 24 February 2022.

Fees paid to the Company’s Directors are disclosed in the Director’s Remuneration Report. At the year end, there were no

outstanding fees payable to the Directors (2021: £nil).

16. Post Balance Sheet Events

Since the year end, the Company has bought back for cancellation 72,173 Ordinary Shares with a nominal value of £7,217 at a

total cost of £377,000.

Notes to the Financial Statements

(continued)

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

The Alternative Investment Fund Manager

Baring Fund Managers Limited (the “AIFM”), authorised by the Financial Conduct Authority as an Alternative Investment Fund

Manager, under the Alternative Investment Fund Managers Directive (“AIFMD”), is the appointed AIFM to the Company.

Pre-investment Disclosures

The AIFM and the Company are required to make certain disclosures available to investors in accordance with the AIFD. Those

disclosures that are required to be made pre-investment can be found on the Company’s website www.bemoplc.com by selecting

“The Trust” and navigating to “Corporate Documents”, the document is titled “Pre Investment Disclosure”.

Leverage Disclosure

For the purposes of this disclosure, leverage is any method by which the Company’s exposure is increased, whether through

borrowing cash or securities, or leverage embedded in contracts for difference or by any other means. The AIFMD requires that each

leverage ratio be expressed as the ratio between a Company’s exposure and its NAV, and prescribes two required methodologies,

the Gross Methodology and the Commitment Methodology (as set out in AIFMD Level 2 Implementation Guidance), for calculating

such exposure.

Using the methodologies prescribed under the AIFMD, the leverage ratios of the Company calculated on a Gross Basis was 100%

and on a Commitment Basis was 100% as at 30 September 2022.

Remuneration Policy

The Manager’s Remuneration Policy ensures the remuneration arrangements, as defined in the FCA’s rules for UCITS and AIFs are:

(i) consistent with and promote sound and effective risk management and do not encourage risk-taking which is inconsistent with

the risk profile, rules or instruments of incorporation of the Manager or the Company; and

(ii) consistent with the Manager’s business strategy, objectives, values and interests and includes measures to avoid conflicts

of interest.

The Manager is subject to the FCA’s UCITS and AIFM Remuneration Codes (SYSC 19B and 19E) and complies with the remuneration

principles in a way and to the extent appropriate to its size and business.

Remuneration Committee

Due to the size and nature of the Manager, the Board of Directors considers it appropriate to dis-apply the requirement to appoint a

remuneration committee.

The Manager is part of the Barings Europe Limited (UK) group of companies (“Barings”) which is governed by the Remuneration

Panel and the Barings LLC Human Resources Committee. These bodies ensure the fair and proportionate application of the

remuneration rules and ensures that potential conflicts arising from remuneration are managed and mitigated appropriately.

Remuneration Code Staff

The Manager has determined its Remuneration Code Staff as the following:

1. Senior Management

Senior Management comprises the Board of Directors, all SMFs and all members of the European Management Team ("EMT").

All control functions detailed in section 2 below are also senior managers.

2. Control Functions

The Manager’s control functions include the Heads of Risk, Compliance, Legal, Operations, Internal Audit, HR and Finance along with

other heads of department in the Executive Committee and the Money Laundering Reporting Officer.

AIFMD Disclosures

(Unaudited)

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

3. Risk Takers

Risk Takers are defined as the investment managers of the Company. Investment managers do not work for the Manager directly as the

Manager delegates portfolio management to BAML. Accordingly, the Manager currently has no risk takers outside of senior management.

BAML is as a MIFIDPRU firm and subject to the Investment Firms Prudential Regime (IFPR) which has equivalent remuneration rules.

4. Employees in the same remuneration bracket as risk takers

The Manager will not treat a person as Remuneration Code Staff if a person’s professional activities do not have a material impact on the

risk profiles of the firm or the Company. Accordingly, the Manager currently has no staff in this category.

5. Staff responsible for heading the investment management, administration, marketing and human resources

To the extent that the Manager’s staff fall within this category, they are also control function staff falling within (2) above.

Remuneration Disclosure

The disclosure below details fixed and variable remuneration paid to BFM staff and BFM Remuneration Code Staff (for the financial year

end 30 September 2022).

Number of

beneficiaries Total Remuneration

Total Fixed

Remuneration

Total Variable

remuneration

Total remuneration paid by BFM in

relation to the Company*

18 £32,545 £5,385 £27,160

Total Senior Management Remuneration

paid by BFM**

18 £581,746 £96,257 £485,489

Risk Takers remuneration 0 £0 £0 £0

Employees in the same remuneration

bracket a risk takers

0 £0 £0 £0

Carried interest paid by the Company X X X X

The Manager’s Remuneration Policy is reviewed annually both in respect of the general principles it contains and its own

implementation. No material changes have been made throughout the year or as a result of the review; no irregularities were identified.

The above disclosures are made in line with Barings' interpretation of currently available regulatory guidance on quantitative remuneration

disclosures. As market or regulatory practice develops, Barings may consider it appropriate to make changes to the way in which quantitative

remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to the Company not being

comparable to the disclosures made in the prior year, or in relation to other Barings disclosures in that same year.

Notes:

* The Manager does not make any direct payments to staff, who are paid by other Barings Group entities. Figures shown are apportioned

on a Company AUM basis as a proportion of Barings total AUM as at 30 September 2022. Accordingly, the figures are not representative

of any individual's actual remuneration.

**Senior management remuneration is apportioned on the basis of the Manager’s total AUM as a proportion of Barings total AUM.

Variable remuneration consists of Short Term Incentive awards, Long Term Incentive awards and any other variable payments including

benefits in kind and discretionary pension awards.

The Company does not pay performance fees.

There has been no award of carry interest in the period.

AIFMD Disclosures

(continued)

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Glossary

(Audited)

AIFM

The AIFM, or Alternative Investment Fund Manager, is Baring Fund

Manager Limited, which manages the portfolio on behalf of the

Company’s Shareholders. The AIFM has delegated the investment

management of the portfolio to Baring Asset Management

Limited (the “Investment Manager”).

Alternative performance measures (“APM”)

An APM is a numerical measure of the Company’s current,

historical or future financial performance, financial position or

cash flows, other than a financial measure defined or specified

in the applicable financial framework. In selecting these APMs,

the Directors considered the key objectives and expectations of

typical investors in an investment trust such as the Company.

Benchmark

The Company’s Benchmark is the MSCI Emerging Markets EMEA

Index. This index is designed to measure the performance of

large and midcap companies across 11 Emerging Markets (EM)

countries in Europe, the Middle East and Africa (EMEA). This

includes, Czechia, Egypt, Greece, Hungary, Poland, Qatar, Russia,

Saudi Arabia, South Africa, Turkey and United Arab Emirates.

The Benchmark is an index against which the performance of the

Company may be compared. This is an indicative performance

measure as the overall investment objectives of the Company

differ to the index and the investments of the Company are not

aligned to this index.

Prior to 16 November 2020, the Benchmark was the MSCI EM

Europe 10/40 Index.

Discount/Premium (APM)

If the share price is lower than the NAV per share, the shares are

trading at a discount. The size of the discount is calculated by

subtracting the share price of 548.0p (2021: 793.0p) from the

NAV per share of 632.1p (2021: 920.7p) and is usually expressed

as a percentage of the NAV per share, 13.3% (2021: 13.9%). If the

share price is higher than the NAV per share, the situation is called

apremium.

Dividend Pay-out Ratio (APM)

The ratio of the total amount of dividends paid out to

Shareholders relative to the net income of the company.

Calculated by dividing the Dividends Paid by Net Income.

Dividend Reinvested Basis

Applicable to the calculation of return, this calculates the return

by taking any dividends generated over the relevant period

and reinvesting the proceeds to purchase new shares and

compound

returns.

Dividend Yield (APM)

The annual dividend expressed as a percentage of the current

market price.

EMEA

The definition of EMEA is a shorthand designation meaning

Europe, the Middle East and Africa. The acronym is used by

institutions and governments, as well as in marketing and business

when referring to this region: it is a shorthand way of referencing

the two continents (Africa and Europe) and the Middle Eastern

sub-continent all at once.

Emerging Markets

An emerging market economy is a developing nation that

is becoming more engaged with global markets as it grows.

Countries classified as emerging market economies are

those with some, but not all, of the characteristics of a

developedmarket.

Environmental, Social and Governance (“ESG”)

ESG (environmental, social and governance) is a term used in

capital markets and used by investors to evaluate corporate

behaviour and to determine the future financial performance of

companies. The Company will evaluate investments in investee

companies considering:

• Environmental criteria considering how the company performs

as a steward of nature;

• Social criteria examine how the company manages relationships

with employees, suppliers, customers, and communities; and

• Governance deals with the company’s leadership, executive pay,

audits, internal controls, and shareholder rights.

Frontier Markets

A frontier market is a country that is more established than the

least developed countries globally but still less established than

the emerging markets because its economy is too small, carries

too much inherent risk, or its markets are too illiquid to be

considered an emerging market.

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Glossary

(continued)

Gearing (APM)

Gearing refers to the ratio of the Company’s debt to its equity

capital. The Company may borrow money to invest in additional

investments for its portfolio. If the Company assets grow, the

Shareholders’ assets grow proportionately more because the

debt remains the same. But if the value of the Company’s assets

fall, the situation is reversed. Gearing can therefore enhance

performance in rising markets but can adversely impact

performance in falling markets.

The Company repaid the bank loan facility during the prior

financial year eliminating gearing at the prior year end. Currently

the Company has no gearing.

For the purposes of AIFMD, the Company is required to disclose

the leverage. Leverage is any method which increases the

Company’s exposure, including the borrowing of cash and use

of derivatives . It is expressed as a ratio between the Company’s

exposure and its net asset value and is calculated under the Gross

and Commitment Methods in accordance with AIFMD.

Under the Gross Method, exposure represents the aggregate of all

the Company’s exposures other than cash balances held in base

currency and without any offsetting. Investments (A) divided by

Total Shareholders’ Funds (B).

Gross method = 100% (A = £75,059,000 / B = £75,408,000) x 100

The Commitment Method takes into account hedging and other

netting arrangements designed to limit risk, offsetting them

against the underlying exposure. Investments (A) plus current

assets (C) divided by Total Shareholders’ funds (B).

Commitment method = 100% ( (A = £75,059,000) + (C = Cash

£233,000 + Debtor £467,000) / B = £75,408,000) x 100

Gross Assets

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

Growth at a Reasonable Price (“GARP”) Investing

GARP investing incorporates elements of growth and value

investing, focusing on companies which have sustainable growth

potential but do not demand a high valuation premium.

Idiosyncratic Risk

Idiosyncratic or “Specific risk” is a risk that is particular to

acompany.

Net Asset Value (“NAV”)

The NAV is Shareholders’ funds expressed as an amount per

individual Ordinary Share. Shareholders’ funds are the total value

of all the Company’s assets, at current market value, having

deducted all liabilities revalued for exchange rate movements.

The total NAV per Ordinary Share is calculated by dividing the

Shareholders’ funds of £75,408,000 by the number of Ordinary

Shares in issue excluding treasury shares of 11,930,201.

Ongoing Charges Ratio (APM)

The Ongoing Charges Ratio (OCR) is a measure of what it costs

to cover the cost of running the fund. The Company’s OCR is

its annualised expenses (excluding finance costs and certain

nonrecurring items) of £1,456,000 being investment management

fees of £666,000 and other expenses of £791,000 less non-

recurring expenses of £1,000 expressed as a percentage of the

average net assets of £91,670,000 during the year as disclosed to

the London Stock Exchange. The OCR for 2022 is 1.59%.

Return per Ordinary Share (APM)

The return per Ordinary Share is based on the revenue/capital

earned during the year divided by the weighted average number of

Ordinary Shares in issue during the year. The calculations are set

out in note 8.

Relative Returns

Relative return is the difference between investment return and

the return of a benchmark.

Risk-adjusted Returns

Risk-adjusted return refines an investment’s return by measuring

how much risk is involved in producing that return.

Return on Equity (APM)

Return on equity (“ROE”) is a measure of financial performance

calculated by dividing net income by Shareholders’ equity.

Because Shareholders’ equity is equal to a company’s assets

minus its debt, ROE could be thought of as the return on net

assets. This measure is used to understand how effectively

management is using a company’s assets to create profits.

Share Price

The price of a single share of a company. The share price is the

highest amount someone is willing to pay for the stock, or the

lowest amount that it can be bought for.

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Systematic Risk

Systematic risk or “Market risk” is the risk inherent to the entire

market or market segment, not just a stock or industry.

Total Assets

Total assets include investments, cash, current assets and all other

assets. An asset is an economic resource, being anything tangible

or intangible that can be owned or controlled to produce positive

economic value. The total assets less all liabilities is equivalent to

total Shareholders’ funds.

Total Return (APM)

Total return statistics enable the investor to make performance

comparisons between investment trusts with different dividend

policies. The total return measures the combined effect of any

dividends paid, together with the rise or fall in the share price or

NAV. This is calculated by the movement in the NAV or share price

plus dividend income reinvested by the Company at the prevailing

NAV or share price.

NAV Total Return (APM)

NAV Total Return is calculated by assuming that dividends paid

out are reinvested into the NAV on the ex-dividend date.

30 September 2022

Closing NAV per share (p) 632.08

Add back total dividends paid in the

year ended 30 September 2022 (p)

17.00

Benefits from reinvesting dividend (p) -3.25

Adjusted closing NAV (p) 645.83

Opening NAV per share (p) 920.71

NAV total return (%) -29.85%

Share Price Total Return (APM)

Share price total return is calculated by assuming dividends paid

out are reinvested into new shares on the ex-dividend date.

30 September 2022

Closing share price (p) 548.00

Add back total dividends paid in the

year ended 30 September 2022 (p)

17.00

Benefits from reinvesting dividend (p) -2.97

Adjusted closing share price (p) 562.03

Opening share price (p) 793.00

Share price total return (%) -29.13%

Treasury Shares

Treasury shares are issued shares that a company keeps in its own

treasury which are not currently issued to the public. These shares

do not pay dividends, have no voting rights and are not included

in a company’s total issued share capital amount for calculating

percentage ownership. Treasury shares have come from the buy

back from shareholders, and may be reissued from treasury to

meet demand for a company’s shares in certain circumstances.

Weighted Average Shares (APM)

The weighted average shares outstanding is calculated by

multiplying the outstanding number of shares after each share

issue and buy back of shares during the year with the time

weighted portion. The total of the weighted average of shares in

issue excluding treasury shares during the year is 12,007,165.

Glossary

(continued)

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Directors

Frances Daley, Chairman

Vivien Gould

Christopher Granville

Calum Thomson

Nadya Wells

Registered Office

6th Floor

65 Gresham Street

London EC2V 7NQ

Company Secretary

Link Company Matters Limited

6th Floor

65 Gresham Street

London EC2V 7NQ

Company Number

04560726

Alternative Investment Fund Manager

Baring Fund Managers Limited

20 Old Bailey

London EC4M 7BF

Telephone: 020 7628 6000

Facsimile: 020 7638 7928

Auditor

BDO LLP

55 Baker Street

Marylebone

London W1U 7EU

Depositary

State Street Trustees Limited

20 Churchill Place

Canary Wharf

London E14 5HJ

Custodian

State Street Bank & Trust Company Limited

20 Churchill Place

Canary Wharf

London E14 5HJ

Administrator

Link Alternative Fund Administrators Limited

Beaufort House

51 New North Road

Exeter EX4 4EP

Registrar

Link Group

10th Floor

Central Square

29 Wellington Street

Leeds LS1 4DL

Corporate Broker

JP Morgan Cazenove

25 Bank Street

Floor 29

Canary Wharf

London E14 5JP

Website

www.bemoplc.com

Directors and Officers

2-31 Strategic Report

32-69 Governance

70-86 Financial Statements

87-93 Other Information

Barings Emerging EMEA Opportunities PLC

Annual Report 2022

Strategic Report 2-31

Governance 32-69

Financial Statements 70-86

Other Information 87-93

Shareholder Information

Company Number

04560726

ISIN

GB0032273343

LEI

213800HLE2UOSVAP2Y69

SEDOL

3227334

Share Dealing

Shares can be traded through your usual stockbroker.

Share Register Enquiries

The register for the Ordinary Shares is maintained by Link Group.

In the event of queries regarding your holding, please contact

the Registrar on 0371 664 0300 or on +44 (0)371 664 0300, UK

Calls are charged at the standard geographic rate and will vary

by provider. Calls outside the United Kingdom will be charged at

the applicable international rate. Lines are open between 09:00 -

17:30, Monday to Friday excluding public holidays in England and

Wales. You can also contact the registrar by email at enquiries@

linkgroup.co.uk.

Changes of name and/or address must be notified in writing

to the Registrar: Link Group, 10th Floor, Central Square,

29Wellington Street, Leeds LS1 4DL.

Electronic Communications from the Company

Shareholders now have the opportunity to be notified by

email when the Company’s Annual Report and other formal

communications are available on the Company’s website, instead

of receiving printed copies by post. This has environmental

benefits in the reduction of paper, printing, energy and water

usage, as well as reducing costs to the Company. If you have not

already elected to receive electronic communications from the

Company and wish to do so, please contact the Registrar using

the details shown above. Please have your investor code to hand.

If you hold shares via a nominee, it is the responsibility of the

nominee to provide you with copies of the Annual Report and any