FIDELITY

EMERGING

MARKETS

LIMITED

Annual Report for the year ended 30 June 2024

To ﬁnd out more, visit ﬁdelity.co.uk/emergingmarkets,

scantheQRcodeorspeaktoyouradviser.

FIDELITY EMERGING MARKETS LIMITED

Whether it’s in South African mining, Indian ﬁnancial

servicesorChineseinfrastructure,weknowwhereto

ﬁnd opportunities hidden within emerging markets.

Fidelity Emerging Markets Limited uncovers great

companies through our experienced global team,

backedbywhatwebelieveareunrivalledon-the-

ground research capabilities. Meaning you can make

themostofourextensiveexpertise,withoutlearning

a whole new language.

Thevalueofinvestmentscangodownaswellasup,

soyoumaygetbacklessthanyouinvest.Overseas

investments are subject to currency ﬂuctuations.

Investments in emerging markets can be more volatile

than other more developed markets. The Company

uses ﬁnancial derivative instruments for investment

purposes,whichmayexposeittoahigherdegreeof

risk and can cause investments to experience larger

than average price ﬂuctuations.

We speak

the language

of opportunity

– wherever it

emerges

籫氳

☲全┘佭儬⚡

Ithuba

Elingavinjelwe

The latest annual reports, key information document (KID) and factsheets can be obtained from our website at www.ﬁdelity.co.uk/its or by calling

0800414110. The Alternative Investment Fund Manager (AIFM) of Fidelity Investment Trusts is FIL Investment Services (UK) Limited. Issued by

Financial Administration Services Limited, authorised and regulated by the Financial Conduct Authority. Fidelity, Fidelity International, the Fidelity

International logo and F symbol are trademarks of FIL Limited. UKM0123/381013/SSO/0623

Fidelity Emerging Markets Limited | Annual Report 2024

The Year at a Glance

As at 30 June 2024

Equity Shareholders’ Funds

£596.0m

Market Capitalisation

£524.8m

Capital Structure

Number of Participating Preference Shares in issue

excluding held in Treasury

74,646,287

Summary of the key aspects of the

Investment Policy

The Company aims to achieve long term growth by primarily

investing in securities and ﬁnancial instruments providing exposure

to emerging markets companies.

The Investment Manager invests at least 80% in companies with

head oﬃces, listings, assets, operations, income, or revenues

predominantly in or derived from emerging markets.

A diversiﬁed portfolio of at least 75 holdings in companies listed or

operating in at least 15countries is maintained.

The Company may also invest into other transferable securities,

investment companies, money market instruments, unlisted shares,

cash and deposits within the limits of the investment policy

restrictions as detailed on page 20. It is able to use derivatives

for eﬃcient portfolio management, to gain additional market

exposure (gearing), to seek a positive return from falling asset

prices, and for other investment purposes.

Net Asset Value per Participating

Preference Share total return

1,2

Year ended 30 June

MSCI Emerging Markets Index

1,3

Year ended 30 June

Active Share

Year ended 30 June

Source: JPMorgan and Datastream.

1 Includes reinvested income.

2 Alternative Performance Measure – refer to Glossary of Terms on pages 86 to 88.

3 The Company’s Benchmark Index.

In the reporting year, the Company’s Net Asset Value per Participating Preference Share increased by

18.7% and the Share Price increased by 22.6%, whilst the Benchmark Index return increased by 13.2%

(allperformance data on a total return basis).

2024

2023

2022

2021

2020

+18.7%

-2.6%

-27.9%

-0.8%

+24.8%

2024

2023

2022

2021

2020

+13.2%

-14.9%

-0.1%

-2.8%

+26.4%

2024

2023

2022

2021

2020

+122.7%

+110.9%

+73.0%

+119.4%

+72.0%

Share Price total return

1,2

Year ended 30 June

2024

2023

2022

2021

2020

+22.6%

-5.2%

+30.0%

-3.3%

-30.0%

To ﬁnd out more, visit ﬁdelity.co.uk/emergingmarkets,

scantheQRcodeorspeaktoyouradviser.

FIDELITY EMERGING MARKETS LIMITED

Whether it’s in South African mining, Indian ﬁnancial

servicesorChineseinfrastructure,weknowwhereto

ﬁnd opportunities hidden within emerging markets.

Fidelity Emerging Markets Limited uncovers great

companies through our experienced global team,

backedbywhatwebelieveareunrivalledon-the-

ground research capabilities. Meaning you can make

themostofourextensiveexpertise,withoutlearning

a whole new language.

Thevalueofinvestmentscangodownaswellasup,

soyoumaygetbacklessthanyouinvest.Overseas

investments are subject to currency ﬂuctuations.

Investments in emerging markets can be more volatile

than other more developed markets. The Company

uses ﬁnancial derivative instruments for investment

purposes,whichmayexposeittoahigherdegreeof

risk and can cause investments to experience larger

than average price ﬂuctuations.

We speak

the language

of opportunity

– wherever it

emerges

籫氳

☲全┘佭儬⚡

Ithuba

Elingavinjelwe

Financial Highlights

30 June

2024

30 June

2023

Assets as at 30 June

USD

Gross Asset Exposure

$1,177.3m $1,185.0m

Equity Shareholders’ Funds $753.4m $796.7m

NAV per Participating Preference Share

$10.09 $8.75

Dividend per Participating Preference Share $0.20 $0.19

Gross Gearing

2,3

56.3% 48.7%

Net Gearing

2,4

4.3% (3.9)%

GBP

Gross Asset Exposure

1,5

£940.7m £932.1m

Equity Shareholders’ Funds

£596.0m £626.7m

NAV per Participating Preference Share

2,5

£7.98 £6.88

Participating Preference Share Price and Discount as at 30 June

Participating Preference Share Price at the year end £7.03 £5.88

Discount to NAV per Participating Preference Share at year end

11.90% 14.61%

Number of Participating Preference Shares in issue 74,646,287 91,100,066

Earnings for the year ended 30 June

Revenue Earnings per Participating Preference Share

$0.16 $0.22

Capital Earnings/(Loss) per Participating Preference Share

$1.29 $(0.06)

Total Earnings per Participating Preference Share

$1.45 $0.16

Ongoing charges ratio

0.81% 0.81%

1 The value of the portfolio exposed to market price movements.

2 Alternative Performance Measure – refer to pages 77 and 78 and Glossary of Terms on pages 86 to 88.

3 Gross Asset Exposure less Equity Shareholders’ Funds expressed as a percentage of Equity Shareholders’ Funds.

4 Net Market Exposure less Equity Shareholders’ Funds expressed as a percentage of Equity Shareholders’ Funds.

5 The conversion from USD to GBP is based on exchange rates prevailing at the reporting dates.

6 Calculated based on weighted average number of participating preference shares in issue during the year.

Annual Total Returns in GBP to 30 June 2024 (%)

1 year ended 30 June 2024 3 years ended 30 June 2024 5 years ended 30 June 2024

Share Price NAV (net of annual fees) MSCI Emerging Markets Index

-16.7

-18.6

-6.4

+2.3

+3.1

+18.2

+13.2

+18.7

+22.6

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Contents

Strategy

Chairman‘s Statement 2

Portfolio Managers’ Review 4

ESG Ratings 9

Extended Investment Toolkit 10

Spotlight on Top 10 holdings 11

Forty Largest Holdings 13

Distribution of the Portfolio 16

Attribution Analysis 18

Five Year Record 19

Strategic Report 20

Investment strategy and policies 20

Principal and Emerging Risks and Uncertainties,

Risk Management 22

Viability statement 25

Governance

Board of Directors 28

Directors‘ Report 30

Corporate Governance Statement 31

Directors‘ Remuneration Report 36

Statement of Directors‘ Responsibilities 37

Report of the Audit and Risk Committee 38

Nomination Committee‘s Report 40

Financial

Independent Auditor‘s Report 41

Statement of Comprehensive Income 45

Statement of Changes in Equity 46

Statement of Financial Position 47

Statement of Cash Flows 48

Notes to the Financial Statements 49

Alternative Performance Measures 77

Securities Financing Transactions Regulation (“SFTR”) 79

Information for Shareholders

Notice of Annual General Meeting 80

Administration 82

Data Protection 83

Alternative Investment Fund Manager‘s Disclosure 84

Glossary to the Annual Report 86

Chairman’s Statement

Read more on pages 4 to 8

Net Asset Value per Share

as at 30 June

798.47p

2024

687.91p

2023

720.16p

2022

Share Price

as at 30 June

703.00p

2024

587.50p

2023

633.70p

2022

Fidelity Emerging Markets Limited | Annual Report 2024

Chairman‘s Statement

This has been a year of strong

performance with our share

price advancing by 22.6%

and our discount to NAV

narrowing by 2.7% to 11.9%.

Heather Manners, Chairman

I am pleased to present your Company’s 35th annual report, covering

a year in which Fidelity Emerging Markets Limited (‘the Company’)

performed strongly, both in absolute terms and relative to the Company’s

benchmark, the MSCI Emerging Markets Total Return Index (‘the Index’).

With the Company’s portfolio now having been managed by Fidelity for

approaching three years, it is particularly pleasing to observe that the

extended investment toolkit available to the investment management team

is having an appreciable impact, and we are beginning to show a clean

pair of heels to the competition with this notably diﬀerentiated product.

Overview

During the 12-month period to 30 June 2024, the Company’s NAV increased

by 18.7% in GBP terms, compared with a gain of 13.2% in the benchmark.

The share price advanced by 22.6%, with the discount to NAV narrowing

from 14.6% at the beginning of the period to 11.9% at year-end (all

performance ﬁgures stated on a total return basis). Havingunderperformed

the Index somewhat in NAV terms in the ﬁrst half of the ﬁnancial year (with

a total return of +3.2% versus +4.4% for the Index), the full-year NAV total

return outperformance of 5.5 percentage points speaks to a particularly

strong outcome in the second half of theperiod.

Thus, after a diﬃcult year in 2022, when the Company’s performance was

negatively aﬀected by Russia’s invasion of Ukraine, and then a period of

consolidation in 2023, it is encouraging to see in 2024 that the investment

process – one which has delivered notably positive results since 2011 in the

strategy’s open-ended vehicle, the FAST Emerging Markets Fund – is now

ﬁring again on all cylinders and driving strong NAV performance.

You will ﬁnd more detail on the contributors to absolute and relative

performance in the Portfolio Managers’ Review on the following pages.

However, your Board is pleased to note the positive impact of stock

selection – which drove the majority of the outperformance – as well

as the signiﬁcant value delivered by the enhanced investment toolkit.

Stock selection – rather than investing by country or sector – is at the

heart of your Company’s investment strategy, facilitated by Fidelity’s

large and experienced team of portfolio managers and analysts, whose

location in the markets they cover gives them a key advantage in terms

of information and access to company managements. Their deep

understanding of their investment universe is also what drives the ability

to identify successful short as well as long positions.

At Board level, your Directors and I continue to work hard to support

the share price, both through capital management initiatives and by

promoting the Company to current and potential investors. I am pleased

to note the proactive eﬀorts of the investment manager in raising the

Company’s proﬁle through events, presentations, and meetings with

stakeholders, combined with regular advertising and content placement

on many of the UK’s leading investment websites and in key printed

media to reach the broadest possible audience, bothprofessional

and retail. These eﬀorts continue apace and are helping build investor

conviction in the investment thesis, as well as contributing towards a

positive perception of the Company’s Portfolio Managers as thought

leaders in emerging markets.

A key attraction for fee-conscious investors remains our low ongoing

charges ratio of 0.81% (FY23: 0.81%), underpinned by a very competitive

management fee that your Board believes oﬀers great value for a

truly actively managed emerging markets portfolio with a full set of

investment tools at the managers’ disposal.

Outlook

Although US ﬁnancial markets have continued to suck liquidity from

the rest of the world, your Portfolio Managers are positive on the

outlook for emerging markets in the coming year and well beyond.

+18.7%

Net Asset Value per Participating

Preference Share total return

(Year ended 30 June 2024)

+22.6%

Share Price total return

(Year ended 30 June 2024)

+13.2%

MSCI Emerging Markets Index

(Year ended 30 June 2024)

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS STRATEGY

Emergingmarketcentral banks have been ahead of the curve

in raising interest rates, inﬂation is generally well controlled, and

they have signiﬁcant policy headroom as, the US Federal Reserve

continues to ease, which should be beneﬁcial for emerging

market equities. Moreover, while much of the US stock market

performance has been driven by multiple expansion, emerging

market equities remain very attractively valued on a relative basis.

With artiﬁcial intelligence (AI) stocks having dominated the

investment headlines from the US, it is important to remember

the role that emerging market companies, such as Taiwanese

semiconductor makers and Korean memory suppliers, play in the

AI value chain. Emerging markets are also among the largest

producers of essential commodities such as copper and lithium,

all of which are fundamental to the build-out of AI and low-

carbon infrastructure.

Often the best investment opportunities can be found in smaller

and medium-sized companies with a longer runway for growth.

However, in far-ﬂung emerging markets, these can be very hard

for individual investors to identify. Your Board and I believe that

one of the Company’s major advantages is having a large team

with ‘boots on the ground’, employing huge amounts of time and

eﬀort in ﬁnding the best mid-sized and smaller companies that

can contribute to performance over many years. The permanent

capital structure of the Company provides the freedom to invest

for the long term in stocks that may not yet be widely known.

Board composition

As reported at the half-year stage, Julian Healy, Chairman of

the Audit and Risk Committee, stepped down from the Board for

personal reasons following the AGM in December. On 17January

we announced the appointment of Mark Little. Mark – aqualiﬁed

Chartered Accountant with extensive ﬁnancial services experience

and a successful track record as an investment company director

– has replaced Julian both as a Director and as Chairman of

the Audit and Risk Committee, and will stand for election at the

next AGM in December 2024. There have been no further Board

changes in the period under review, and with none of the Directors

yet approaching nine years’ tenure, we do not foresee any in the

immediate future. We thank Julian for his service, and with Mark’s

appointment we feel the board continues to have a strong diversity

of background, specialist knowledge and competency.

Due diligence trip

In September 2023, the Board was fortunate to have the

opportunity to visit Fidelity’s team in the Middle East.

Wetravelled to Saudi Arabia, Abu Dhabi and Dubai, following

an investment team led schedule and observing the team

at work, which was very helpful to our understanding of the

investment opportunities in the region. The Middle East is not

currently a large part of the portfolio, but it has contributed

positively to performance, notably Saudi Arabian water utility

Alkhorayef Water & Power Technologies was amongst the top

ten contributors to performance this year and the region has the

potential to play a greater role in the future.

Discount management

As noted above, during the year the discount to NAV narrowed

somewhat, from 14.6% to 11.9% in what was a challenging

year for the broader London listed closed end fund sector.

TheCompany completed a tender oﬀer in March 2024,

which saw 13,531,881 shares (14.99% of the shares in issue)

repurchased at a 2% discount to NAV, and we also bought back

shares in the market, with an additional 2.9m shares repurchased

(FY23: nil). Since year-end, we have repurchased an additional

2.8m shares (3.7% of shares in issue), and at 2 October 2024 (the

latest practicable date), the discount to NAV stood at 12.2%. At

the AGM in December 2024 we will seek to renew the existing

annual authority to repurchase up to 14.99% of our Participating

Preference Shares.

I would also remind readers that the Company has committed

to undertake a further tender for up to 25% of its then shares in

issue (excluding any shares held in treasury) should its NAV total

return fail to exceed the benchmark over the ﬁve years ending on

30September 2026.

While buybacks are NAV-accretive for existing shareholders,

share repurchases on their own do not narrow discounts, and as

such we continue to work to ensure that potential and existing

investors fully understand the Company’s story and the enhanced

investment toolkit available to the managers, whose performance

is beginning to speak for itself.

Dividend

Your Board does not task the Portfolio Managers with ﬁnding

yield. However, some dividend income naturally arises, and after

accounting for costs charged to the revenue account, the majority

of this is paid out to our shareholders in the form of dividends.

A resolution to declare a ﬁnal dividend of $0.20 per share

(2023: $0.19) will be proposed at the AGM of the shareholders

of the Company that will be held on 10 December 2024.

Subject to shareholder approval, the ﬁnal dividend will be

paid on 13December 2024 to shareholders on the Register

of Members on 15 November 2024. The ex-dividend date is

14November2024.

AGM

This year’s AGM will be held on Tuesday, 10 December 2024

at 11.00a.m. at the registered oﬃce of the Company, Level 3,

MillCourt La Charroterie, St Peter Port, Guernsey GY1 1EJ. Notice

of the AGM, containing full details of the business to be conducted

at the meeting, is set out on page 80of this report. Your attention

is also drawn to the Corporate Governance section of the

Directors’ Report on page 32 where resolutions relating to special

business are explained.

Electronic proxy voting is now available and shareholders are

encouraged to submit voting instructions using the web based

voting facility at www.eproxyappointment.com and for institutional

shareholders via the CREST system, CREST messages must be

received by the issuer’s agent (ID number 3RA50) not later than

11.00a.m. on 8December 2024. In order to use electronic proxy

voting, shareholders will require their shareholder registration

number, control number and pin. If you do not have access

to these details please contact the Company’s Registrar,

Computershare, their contact details can be found on page82

ofthis report.

Heather Manners

Chairman

8 October 2024

Fidelity Emerging Markets Limited | Annual Report 2024

Question

How has Fidelity Emerging Markets

Limited performed in the ﬁnancial year

to30 June 2024?

Answer

The twelve months to the end of June was a period of strong

performance for the Company. Markets were volatile as they

reacted to developments in China and signals from the Federal

Reserve about the pace of interest rate cuts. Another key driver

for markets was the incredibly strong performance of AI-related

stocks, notonly in the US, but across the emerging market universe,

too. Against this backdrop, emerging markets rallied over the

period but underperformed developed markets such as the US.

Over the year, the portfolio gained on an absolute basis and the

Company delivered an NAV total return of 18.7% in sterling terms,

outperforming the benchmark, which returned 13.2%.

Question

What were the main contributors to the

outperformance during the year and why?

Answer

The Company’s extensive ‘toolkit’ added signiﬁcant value over the

year. When managing the portfolio, we draw on a broad range of

‘tools’, namely the ability to adjust the level of gross exposure via

gearing, to invest in mid-cap companies, take out short positions,

and use options. It is pleasing to see that many of these tools,

including the mid-cap exposure and the short book, added

substantial value over the past year. While yield enhancement (or

the options book) detracted, this is a function of it being a hedging

tool, which means it detracts when performance is strong.

The short book in particular generated very positive performance.

We take out short positions in businesses that are in structural

or cyclical decline, and that have a number of red ﬂags around

aspects like their balance sheet structure, cash conversion,

orrelated party/management conﬂicts of interest. Over the year

there were two short positions in the top ten contributors to relative

returns, a notable achievement given that we limit the size of short

positions to c.100bps. The top performer in the short book was

adeclining Asian utility that is unsuccessfully pivoting into unrelated

business areas, and which saw its share price halve during June,

following poor earnings and after the major shareholder faced

margin calls.

Portfolio Managers’ Review

Nick Price was appointed

as Portfolio Manager of Fidelity

Emerging Markets Limited on

4 October 2021. He has 25 years

of investment experience.

Chris Tennant was appointed

as Portfolio Manager of Fidelity

Emerging Markets Limited on

4 October 2021. He has 12 years

of investment experience.

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Looking to the rest of the portfolio, several holdings in the

ﬁnancials sector stand out. These included high-conviction

positions like Brazilian digital challenger bank Nu Holdings,

and Kazakhstan’s e-commerce and payments platform Kaspi.

Another contributor was Russia’s TCS Group

, a provider of online

ﬁnancial services, which we disposed of after identifying a liquidity

opportunity. The Company’s holdings in Russian securities have

been fair valued at nil since the ﬁrst quarter of 2022. Within

information technology, Taiwanese semiconductor foundry business

TSMC performed well given the growing tailwind from AI-related

demand.

The Chinese consumer names held in the portfolio were the

main headwind to performance. The portfolio had a marginal

underweight exposure to China and Hong Kong combined at

the end of June, but the Hong Kong listed names held such

as sportwear company LiNing and insurance company AIA

lagged the domestic A-share market. Afeature of 2023 was

the signiﬁcant underperformance of HongKong listed H-shares

as foreign investors exited the market, although this started to

reverse over the ﬁrst half of 2024 as sentiment began toimprove.

Overall, it was a strong period for the Company, which beneﬁted

from broad-based performance drivers and where the extensive

toolkit added notable value.

Question

The Company is unique in its peer group

given its ability to use both long and

short positions. How did you exploit that

ﬂexibility over the past year?

Answer

One of the additional tools the Company has at its disposal is

the ability to take out short positions. This allows us to proﬁt not

only from the winning businesses in each industry, but also from

thelosers.

An example of a now-closed short position that worked well

for us is Microvast, a battery maker using antiquated, obsolete

technology. We thought that Microvast also had a questionable

order book and a stretched balance sheet. Thecompany’s share

price fell signiﬁcantly, and we exited the position at a proﬁt earlier

this year.

Other high-conviction short positions include several current

holdings in Chinese EV makers (disclosure rules mean we are

unable to name open short positions). These companies operate

in an industry that suﬀers from high competitive intensity and

overcapacity, while at a fundamental level these businesses also

have undiﬀerentiated products, high cash burn, and signiﬁcant

debt on their balance sheets.

Top 5 Positions

As at 30 June 2024 Country Sector

Portfolio

(%)

Index

Weight

(%)

Relative

(%)

Taiwan Semiconductor Manufacturing Taiwan Information Technology 11.6 9.7 1.8

Naspers South Africa Consumer Discretionary 5.4 0.5 5.0

Kaspi.KZ Kazakhstan Financials 5.4 0.0 5.4

Samsung Electronics South Korea Information Technology 5.1 4.2 0.8

Nu Holdings Brazil Financials 4.6 0.0 4.6

STRATEGY

Fidelity investment, trading and operational teams actively monitor developments, which can result in the identiﬁcation of liquidity opportunities. Importantly, any pre-trade

assessment ensures that activities do not contravene international sanctions. Prudent assessment of counterparties and all aspects of trade settlement arrangements are

scrutinised and carefully managed in the best interests of clients. The decision to trade TCS was based on our assessment that a fair exit multiple was achievable.

Fidelity Emerging Markets Limited | Annual Report 2024

Question

What were some of the major changes

you made to the portfolio during the year

and what drove those?

Answer

Over the twelve months to the end of June we focused on

adjusting the portfolio’s China/Hong Kong exposure. Something

we pay very close attention to is the extent of negative sentiment

towards China and the potential for a rebound, which we did

indeed see following the end of the review period, when China

announced meaningful stimulus measures in September. While

the Chinese market faces structural issues, we think it is important

to hedge the portfolio’s underweight exposure. We also saw a

number of very high-quality businesses that had disproportionately

derated, oﬀering attractive entry points.

One of the ways we looked to add exposure towards the end

of the period was through the options book, initiating a long

position in an out-of-the-money Hang Seng China Enterprises

Index call option, which we funded by selling out-of-the-money

put options. Given that implied volatility is at decade lows for

emerging markets, utilising the options book is a cost-eﬀective

way to take out insurance against a rally in Chinese equities

(which we saw during April and May and subsequent to the end

of the review period in September). We also added a number

of long positions in Chinese stocks during the review period,

including high-quality consumer and internet businesses that now

trade on very attractive valuations, including premium sportwear

company Anta Sports and leading online travel agent Trip.com.

We also made changes within the portfolio’s information

technology holdings. The semiconductor industry has performed

extremely well and index heavyweight TSMC, the Taiwanese

foundry business, now makes up about a tenth of the

emerging market index. We have a very constructive outlook

for TSMC, which is a vital part of the AI supply chain, and the

company remains a core position in the portfolio. However,

we have looked to diversify exposure to other AI supply chain

beneﬁciaries, with recent additions including Elite Material,

aTaiwanese manufacturer of copper clad laminate, a vital

input for printed circuit boards, and another beneﬁciary of

AI-drivendemand.

Question

What opportunities are you particularly

excited about – are there any stand-out

markets, sectors or themes you’d

highlight?

Answer

We have a particularly constructive outlook for copper miners.

Electriﬁcation and datacentres alone could add an incremental

4% per annum to demand over the rest of the decade, while

the backdrop for supply is very muted, with few copper mines

currently in operation, and little supply expected to come online

given it takes around 10 years to bring a greenﬁeld copper

discovery into production. This creates a buoyant environment for

copper prices.

The largest position we have is in Grupo Mexico, which is the

holding company for Southern Copper, one of the lowest cost

copper producers in the world. Given the Company’s closed-

ended nature we also have positions in mid-cap copper miners,

for example Minsur, a Peruvian miner of copper and tin which

has good assets, and a healthy cash balance that it has

signalled it intends to pay out to investors.

We continue to see opportunities in the ﬁnancials sector.

Whileinterest rates have likely peaked, the Company’s ﬁnancials

exposure is not rate sensitive. Examples of companies we own are

Indian private sector banks, companies in the ﬁntech space and

banks in Eastern Europe that are beneﬁciaries of fallingrates.

Indian private sector banks HDFC Bank, ICICI Bank, and Axis Bank

remain core holdings. These companies all stand to beneﬁt from

the underpenetration of ﬁnancial services in India, and growing

demand for credit cards and mortgage products. Unlike the Indian

market in aggregate, these stocks trade at reasonable valuations.

We have seen in recent years a signiﬁcant shift in business

towards these private banks at the expense of the state-owned

banks and think that going forward they stand to beneﬁt from

strong GDP and credit growth in the Indian market.

High conviction holdings in ﬁntech include Brazil’s digital

challenger bank Nu Holdings, which is rapidly taking market

share from incumbents. Five years ago, the incumbent banks in

Brazil were levying very high fees and rates on consumers, using

that revenue to ﬁnance a bloated bricks-and-mortar cost base.

This created a fantastic backdrop for a challenger bank like Nu

to oﬀer a great value proposition with no fees and lower interest

rates, all at much better unit economics. As a result, it has been

able to rapidly grow its customer base to 100m customers and

start to expand into other markets like Mexico.

We also have exposure to beneﬁciaries of falling rates, for

example, banks in countries such as Hungary, which are liability

sensitive. This means that their liabilities reprice more quickly than

their assets, so when rates come down, margins expand rather than

contract. One of the stocks we hold is Hungary’s OTP Bank, which

has a dominant position in Eastern Europe and is set to beneﬁt

from net interest margin expansion as rates continue to come down.

Question

Another aspect of the company’s broad

toolkit is the ability to invest in smaller

companies and in “oﬀ-the-beaten-track”

markets like Vietnam. Canyou outline

some of the most excitingopportunities

you are seeing inthose areas?

Answer

One of the key beneﬁts of the investment company structure is that

we can take a longer investment horizon and move further down

the market cap spectrum. This might be into smaller companies

that are less well known by investors and are often poorly covered

by the sell side, or companies in frontier markets such as Vietnam.

Portfolio Managers’ Review continued

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

One mid-cap company we are particularly excited about is

Brazil’s Direcional, a developer of large-scale, low-income

housing projects in Brazil. Aﬀordable housing is a key priority for

Brazil’s President Lula, and recent changes to the “Minha Casa,

Minha Vida” social housing programme make the low-income

housing market much larger and more proﬁtable than it has

been historically. Despite these structural tailwinds and a benign

competitive environment, the company is trading on a very cheap

valuation, and is, we think, an underappreciated beneﬁciary of

the growth in social housing in Brazil.

We also see opportunities in frontier markets such as Vietnam.

One Vietnamese company we hold is FPT, an IT services business

that beneﬁts from Vietnam’s highly skilled low-cost labour and is a

beneﬁciary of the diversiﬁcation of supply chains away from China.

FPT owns its own university, providing access to the country’s talent

base, and oﬀers unparalleled value to its customers, putting it in a

good position to continue gaining market share.

Question

Given the scale of the emerging market

opportunity set, one of Fidelity’s strengths

is the depth of resources and local

presence around the world combined

with your frequent research trips to the

countries in which the Company invests.

How do you leverage that resource to the

beneﬁt of the Company’s shareholders

and what were some of the key

takeaways from recent country visits?

Answer

Travel is a huge part of our process and the investment team

go on a number of research trips every year. These overseas

trips form a crucial part of our due diligence process, and we’ve

visited Poland, Greece, and the Middle East, among other

places, over the past year. Speaking to local experts on their

home turf is a vital input that allows us to assess all manner of

opportunities and, of course, risks.

One of the more recent trips we went on was to Poland, where

we wanted to assess the backdrop for companies following last

year’s election, when the right-wing PiS party was replaced by

Donald Tusk’s pro-EU coalition. This has resulted in management

team changes at state-owned companies, leading to many

companies having a much more shareholder friendly mandate

than previously. We wanted to visit the country to assess this

for ourselves and were heartened to see what appears to be

a signiﬁcant corporate change story underway, with a huge

improvement in the treatment of minority shareholders. We think

it is vital to meet these management teams in person in order to

really understand who the winners and losers of this corporate

change story are.

Question

How do you actively and eﬃciently

manage the portfolio, given the extensive

universe of companies to choose from in

emerging markets?

Answer

Fidelity’s extensive emerging market research team is one of the

key mechanisms that lets us eﬀectively manage the portfolio.

We have about 50 analysts across the globe looking only at

emerging market companies, which means we can develop

a deep, unrivalled view of their dynamics, and explore the

opportunities among mid-cap companies. There is excellent

collaboration between all our analysts across regions and

sectors, with those focused on global sectors like oil and gas,

metals and mining, and technology helping us analyse what is

going on in emerging markets alongside changes in developed

markets.

Our research team really allows us to have ‘boots on the ground’

across emerging markets. This year we travelled to countries like

Greece and Poland and spent time meeting with companies,

their competitors, and their suppliers, seeing the assets and

operations of companies ﬁrst hand. There is no substitute for this

sort of on the ground presence, and Fidelity research analysts

carry out around 20,000 company meetings a year.

The way our global emerging markets investment team is

structured also allows us to eﬀectively cover diﬀerent regions.

Thebroader team manages three regional portfolios,

encompassing Latin America, emerging EMEA, and emerging

Asia, which all feed ideas into our global emerging markets

portfolio, and within this the Company’s portfolio. This structure

is an acknowledgement of the fact that the emerging market

universe is vast and means we can apply multiple layers of due

diligence to the stocks we invest in.

STRATEGY

Fidelity Emerging Markets Limited | Annual Report 2024

Portfolio Managers’ Review continued

Question

Finally, how do you view the prospects

for the broad asset class and China in

particular given overall valuation levels,

macroeconomic conditions and the

political backdrop across the emerging

world?

Answer

Emerging market equities have structurally derated over the

past 15 years. Weakness in China and a muted backdrop for

commodity prices partly explains this, as well as the environment

of higher interest rates and concerns about geopolitics.

We are cautiously optimistic about the year ahead. As the Fed

has now started to ease policy, this should give the green light to

emerging economies to continue cutting interest rates, which will

be supportive of consumers and corporates, and will help drive

ﬂows to equity markets. During the current rate-hiking cycle, many

emerging economies were far ahead of developed economies in

acting decisively to raise rates and bring inﬂation under control.

This means that real interest rates in many emerging markets are

still incredibly high, and there is huge scope for rates to come

down further.

Emerging economies also beneﬁt from an improved ﬁscal

backdrop, which stands in stark contrast to developed economies

like the UK or the US, where the ﬁscal environment is the worst

it’s been for many years. While much of the boom in developed

markets has been underpinned by QE and stimulus, we have

not seen the same level of support extended in emerging

economies, which makes the asset class better equipped for an

environment of structurally higher interest rates.

Part of the reason the ﬁscal backdrop is better for emerging

markets is the more buoyant backdrop for commodity prices.

For emerging economies, the past decade has been marked

by a bursting of the commodity bubble as demand from the

China property market slowed down. Looking ahead to the next

decade we see a much tighter environment for prices, given

there has been a decade of underinvestment in the commodity

complex, and the fact that there are strong demand drivers from

electriﬁcation and AI. We expect this will be a huge tailwind for

commodity exporting emerging market economies such as Brazil,

South Africa, Indonesia, and Peru.

China remains key to the outlook. We are emerging from a

period of signiﬁcantly negative sentiment towards China and

while structural problems persist, any signs that we are past

the worst could lead international investors to start reallocating

capital to the market. Following the end of the review period

there was a signiﬁcant rally in the Chinese market, as the

government announced meaningful stimulus measures. Thebig

challenge for China is consumer conﬁdence as the post-Covid

spending boom seen in developed markets failed to materialise,

given weakness in the property market, which has historically

made up around half of household wealth. This year the

government has shifted from deleveraging the property market

to looking to reﬂate it, with the most signiﬁcant measures

announced post the end of the review period in late September.

While the recovery will likely be slow and protracted, any positive

momentum in prices will support consumer conﬁdence. However,

we expect excess capacity in industries like steel, cement, and

solar to persist, while the potential for higher tariﬀs is also a tail

risk. For that reason, it is vital to be incredibly selective when

investing in China.

Another driver for emerging markets is the exposure it oﬀers to

the AI supply chain. While US companies are typically thought of

as AI beneﬁciaries, what is often overlooked is the fact that the

bulk of the AI supply chain sits in emerging markets like Taiwan.

Indeed, Jensen Huang, Nvidia’s CEO, has said that Nvidia

wouldn’t be the company it is today without Taiwan’s TSMC,

which manufactures Nvidia’s AI chips. Given the discount that

emerging markets are trading on relative to the US, the emerging

market universe oﬀers exposure to the AI supply chain at much

more attractive valuations.

The emerging market universe is trading at multi-decade

lows relative to developed markets. Part of this is down to

concerns about geopolitics. 2024 is a busy election year, with

developments in both emerging economies and the US requiring

close scrutiny. These are the types of events we continue to

monitor incredibly carefully, drawing on the inputs of external

experts to help make sense of elevated unpredictability in

markets, and we continue to focus on staying fully engaged

and speaking to geopolitical experts with a range of

diﬀerentperspectives.

With an improving fundamental backdrop, we think today

represents an attractive entry point for emerging market equities.

Using our bottom-up, highly diﬀerentiated approach, we are

focused on using the Company’s extensive toolkit to carefully

manage country-level exposures, and the short book to beneﬁt

from the universe’s structural losers, as well as identifying the

winners for the long book. Against a backdrop that will likely

remain highly uncertain, we will continue to use this ﬂexibility to

closely manage risk, all the while exploiting the most exciting

opportunities throughout the emerging market universe.

Nick Price

Chris Tennant

Portfolio Managers

8 October 2024

Annual Report 2024 | Fidelity Emerging Markets Limited

GOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS STRATEGY

The charts below show a breakdown of the underlying stocks in the Company’s portfolio using MSCI and Fidelity’s own ESG ratings.

It is encouraging that Fidelity’s ratings, which are more forward-looking in nature, show a greater proportion of the portfolio in higher

rated stocks than those rated by MSCI, which is more backward-looking and disclosure driven.

MSCI ESG ratings

Not yet

Rated

CCCBBBBBBAAAAAA

Portfolio Index

9.9%

11.3%

13.4%

17.4%

8.3%

16.7%

6.6%

9.2%

0.0%

3.3%

26.1%

0.5%

26.6%

24.0%

9.1%

17.6%

% TNA

FIL proprietary ESG ratings

Not yet

Rated

EDCBA

Portfolio Index

25.2%

19.2%

38.0%

34.1%

17.2%

15.6%

1.4%

4.0%

1.2%

0.3%

16.9%

26.8%

% TNA

Source: Fidelity International, MSCI ESG Research, Data is representative of the Fidelity Emerging Markets Limited as at 30 June 2024. LHS: The Fidelity Sustainability Ratings

were launched in June 2019. As at 30 June 2024, they cover a universe of c. 4,000 issuers in equity and ﬁxed income. Fidelity have a ﬁve scale rating of A (best) to E (worst).

RHS: MSCI rates issuers on a AAA-CCC scale according to their exposure to industry speciﬁc ESG key issues and their ability to manage those issues relative to peers. The

ESG ratings distribution is based on the Net Asset Value of holdings excluding cash, liquidity funds and ETFs which are grouped under “Cash & Others”. The charts above

show long book rebased to 100%. Short positions are excluded. Due to small rounding errors, Portfolio and Index holdings may not total 100%.

Fidelity International’s proprietary sustainability ratings system leverages its internal research and interactions with issuers. The

ratings are designed to generate a forward-looking and holistic assessment of ESG risks and opportunities based on sector speciﬁc

performance indicators. Analysts quantify the direction of change of companies’ ESG performance (positive, neutral or negative

trajectory) and rate the companies using a scale of A (best) to E (worst).

ESG Ratings

Fidelity Emerging Markets Limited | Annual Report 2024

Extended Investment Toolkit

Fidelity Emerging Markets Limited is an all-cap Global Emerging

Markets strategy with enhanced investment powers which seeks

to exploit a broad range of opportunities. As opposed to more

traditional long-only funds, the Company adopts an active

‘extension’ investment style with the strategy beneﬁtting from an

expanded toolset which allows the portfolio managers to employ

long and short extensions using derivatives as and when high

conviction ideas are identiﬁed:

• Equities: The Company predominantly invests in equity

securities that oﬀer a signiﬁcant degree of absolute upside

from prevailing market prices. The portfolio managers

will seek opportunities across the market cap spectrum,

geographies, and consider listed companies, initial public

oﬀerings and unlisted investments

• Long extensions: Derivatives are used to provide additional

exposure to stocks with the greatest upside potential and

to oﬀset the reduction in equity exposure introduced by

the Company’s short positions. Most of the long and short

derivative exposure is currently achieved through Contracts

for Diﬀerence (“CFDs”).

• Short extensions: Derivatives are used to achieve the

economic eﬀect of a short position in a security which the

portfolio managers believe is overvalued. Short positions are

implemented on an opportunistic basis for up to approximately

30% of total Net Assets under normal market conditions.

• Other instruments: The Portfolio Managers can

opportunistically access other derivative instruments such

as options to enhance the Company’s returns or manage

its risk proﬁle. An example of return enhancement would

be the sale of call options against holdings in the fund in

high volatility environments, to capture the option premium,

whilst also providing an eﬃcient exit from the position at a

strike price equivalent to the stock’s target price. An example

of risk control would be the purchase of appropriate index

put options in lower volatility environments to protect the

Company against negative movements in equity markets,

where such portfolio insurance can be purchased at an

attractively low premium.

How this ﬁts with our investment philosophy

We believe that many emerging market companies can

sustain high levels of economic growth for years to come,

driven by attractive demographic proﬁles, immature markets,

an abundance of untapped natural resources, and generally

low levels of indebtedness. However, whilst these positive

attributes provide a fertile environment for companies to grow

their earnings, it is critical to ensure that each company we

invest in can generate superior and sustainable returns on

assets that permit them to fund the growth of their business,

withstand competitive pressures and achieve attractive returns for

minorityshareholders.

With this in mind, we deﬁne high quality companies as those

thatexhibit:

• Quality – high quality, well capitalised companies capable

of achieving superior returns on assets, and where strong free

cash ﬂow generation can be used to either self-fund future

growth or pay dividends to shareholders.

• Consistency of returns – dominant companies that can

maintain superior levels of growth and proﬁtability resulting

from a sustainable competitive advantage, such as market

share, technology, or cost leadership; companies which

exhibit a solid track record of delivering attractive total

shareholder returns over time.

• Reasonable price – attractive valuations that understate the

intrinsic value of a company. Target prices are determined

for every stock considered for the portfolio, reﬂecting each

company’s sustainable level of earnings power across the

economic cycle and an appropriate valuation multiple.

Conversely, it is those weaker peers who are unable to compete

with the strongest franchises that are likely to fall by the wayside.

Using short positions, these weaker businesses form some of the

additional investment opportunities that we can take advantage

of, as an additional source of performance.

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS STRATEGY

Spotlight on Top 10 holdings

as at 30 June 2024

Based on Asset Exposure expressed as a percentage of Net Assets. Asset Exposure comprises the value of direct

equity investments plus market exposure to derivative instruments.

Taiwan Semiconductor Manufacturing (“TSMC”)

% of Net Assets

11.6%

TSMC is a pre-eminent Taiwanese semiconductor foundry with leading-edge technology, which

reinforces the company’s competitive position and ability to generate incremental return on invested

capital. The company has built a technological moat over the past three decades and occupies an

especially dominant position at the forefront of the industry as competitors have dropped out of the

race due to technical hurdles and the barrier of high required capital expenditures. TSMC’s ability

to hire the best talent while continuously improving its know-how keeps it ahead of the competition

and able to generate cashﬂow to reinvest in R&D and capacity.

Industry Information Technology

Naspers

% of Net Assets

5.4%

Naspers is a South African holding company specialising in internet investments. The unwinding of

its complex corporate structure last year was an important development for minority shareholders,

who will beneﬁt from Naspers’ ability to buy back more of its shares and further shrink the discount

between the value of Naspers and Prosus, as well as their biggest asset Tencent.

Industry Consumer Discretionary

Samsung Electronics

% of Net Assets

5.1%

Samsung Electronics is a technology powerhouse with products spanning upstream manufacturing

to downstream consumer products. The company’s device experience division produces product

such as mobile handsets, tablets, business networks and medical and health equipment, while

its device solutions segment captures its memory and foundry business. Innovations in artiﬁcial

intelligence, 5G and 6G, automotive electronics and a wide range of robotics are also core to

Samsung’s strategy.

Industry Information Technology

Kaspi.KZ

% of Net Assets

5.4%

Kaspi is the dominant consumer ﬁnance, e-commerce, and payments platform in Kazakhstan. It

provides interconnected technology and products and services that help people to pay, shop,

and manage their ﬁnances. Its ecosystem connects consumers and merchants, enabling digital

payments, e-commerce, and ﬁnancial services. The company’s gateway to its ecosystem is the

mobile app, which is powered by the company’s proprietary technology and enables users to

navigate between interconnected products and services. Kaspi serves customers in Kazakhstan

and Azerbaijan.

Industry Financials

Nu Holdings

% of Net Assets

4.6%

Nu Holdings is an oﬀ-benchmark name which is a testament to the power of Fidelity’s research

capability that extends beyond the typical investment universe. The management is focused on

growing deposits, personal loans, and cross-selling ﬁnancial products on its platform. Brazil is

the core market, but the company is also expanding in Mexico and Colombia. The company has

consistently reported strong proﬁtability and grown its total number of customers to approximately

100m, demonstrating exceptional execution on customer acquisitions, and asset quality that has

been more resilient than expected.

Industry Financials

Fidelity Emerging Markets Limited | Annual Report 2024

HDFC Bank

% of Net Assets

3.4%

HDFC Bank is the best run bank in India with a focus on non-mortgage retail lending. It has an

excellent history of balancing growth and shareholder returns. Its conservative capital management

practices enable it to continually invest across the cycle. Its leading-edge technology reinforces its

competitive position and ability to generate incremental returns on invested capital.

Industry Financials

Axis Bank

% of Net Assets

3.8%

The promising long-term growth prospects of India’s third-largest private lender Axis Bank stand

out. The bank has an encouraging asset quality, well-capitalised balance sheet, low cost of funds,

healthy interest margins and high provision buﬀers.

Industry Financials

AlKhorayef Water & Power Technologies

% of Net Assets

3.6%

Alkhorayef Water & Power Technologies is a Saudi Arabian water utility company which operates

in a fragmented industry that has seen strong growth and has a good focus on returns and project

economics, with a large pipeline of projects and a strong management team.

Industry Utilities

Grupo Mexico

% of Net Assets

3.1%

Grupo Mexico has an 89% stake in Southern Copper which accounts for 80% of group earnings.

Southern Copper remains a highly attractive and cash generative business. Grupo Mexico

Transportes is another driver of Grupo Mexico’s earnings and it continues to track well with broad

end industry exposure and decent eﬃciency gains. Overall, Grupo Mexico has good assets, is

generating strong cashﬂow and will clearly beneﬁt from any upward move in the copper price.

Industry Materials

MakeMyTrip

% of Net Assets

3.9%

Makemytrip is the largest online travel agency in India. The company has a leading share in air

ticketing and dominant market share in bus ticketing. It also has a strong and growing presence

in hotels. The company has a long growth runaway given low penetration of airlines and hotels in

India along with improving air connectivity and infrastructure. The company is beneﬁting from rising

income levels and increasing internet penetration in the country. Trip.com’s ownership and board

presence are likely to give further impetus to international growth, improve strategic decision

making and the competitive position of the company.

Industry Consumer Discretionary

Spotlight on Top 10 holdings continued

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS STRATEGY

The Asset Exposures shown below measure exposure to market price movements as a result of owning shares, corporate bonds,

equity linked notes and derivative instruments. The Fair Value is the realisable value of the portfolio as reported in the Balance Sheet.

Where the Company holds shares, corporate bonds and equity linked notes, the Asset Exposure and Fair Value will be the same.

For derivative instruments, Asset Exposure is the market value of the underlying asset to which the Company is exposed, while the

Fair Value reﬂects the proﬁt or loss on the contract since it was opened, and is based on how much the share price of the underlying

asset has moved.

Asset Exposure Fair value

$’000 %

$’000

Long Exposures – shares unless otherwise stated

Taiwan Semiconductor Manufacturing (shares, option and long CFD) 87,016 11.6 79,736

Information Technology

Naspers 40,678 5.4 40,678

Consumer Discretionary

Kaspi.KZ 40,447 5.4 40,447

Financials

Samsung Electronics (shares and long CFD) 38,012 5.1 9,129

Information Technology

Nu Holdings (option and long CFD) 34,516 4.6 2,712

Financials

MakeMyTrip (option and long CFD) 29,694 3.9 (831)

Consumer Discretionary

Axis Bank (shares and long CFD) 28,630 3.8 6,033

Financials

AlKhorayef Water & Power Technologies 27,359 3.6 27,359

Utilities

HDFC Bank (shares, option and long CFD) 25,705 3.4 23,500

Financials

Grupo Mexico (shares and long CFD) 23,465 3.1 986

Materials

ICICI Bank (shares and long CFD) 23,181 3.1 6,197

Financials

AIA Group (shares and long CFD) 21,090 2.8 4,736

Financials

Bank Central Asia 19,668 2.6 19,668

Financials

Piraeus Financial Holdings 16,125 2.1 16,125

Financials

MediaTek 15,838 2.1 15,838

Information Technology

Samsonite International (long CFD) 14,456 1.9 (465)

Consumer Discretionary

Auto Partner 13,899 1.8 13,899

Consumer Discretionary

TBC Bank Group (long CFD) 13,538 1.8 990

Financials

Eicher Motors 13,509 1.8 13,509

Consumer Discretionary

Brilliance China Automotive Holdings (shares and long CFD) 13,351 1.8 1,685

Consumer Discretionary

ASML Holding (option and long CFD) 12,331 1.6 (20)

Information Technology

Forty Largest Holdings

as at 30 June 2024

Fidelity Emerging Markets Limited | Annual Report 2024

Asset Exposure Fair value

$’000 %

$’000

Banco BTG Pactual 12,026 1.6 12,026

Financials

Standard Bank Group (shares and long CFD) 12,022 1.6 4,352

Financials

SK Hynix (option and long CFD) 11,520 1.5 591

Information Technology

FPT 11,407 1.5 11,407

Information Technology

Alibaba Group Holding (shares, option and long CFD) 11,267 1.5 716

Consumer Discretionary

Grupo Aeroportuario del Paciﬁco 10,949 1.5 10,949

Industrials

Endeavour Mining (long CFD) 10,935 1.5 269

Materials

OTP Bank 10,536 1.4 10,536

Financials

Five-Star Business Finance 10,499 1.4 10,499

Financials

Lundin Gold 10,321 1.4 10,321

Materials

PDD Holdings (long CFD) 9,652 1.3 (626)

Consumer Discretionary

Pan African Resources 9,501 1.3 9,501

Materials

China Resources Land (shares and option) 8,507 1.1 2,953

Real Estate

Wiwynn 8,479 1.1 8,479

Information Technology

Africa Oil (long CFD) 8,450 1.1 421

Energy

Kuaishou Technology (shares and long CFD) 8,145 1.1 1,522

Communication Services

ANTA Sports Products 7,891 1.0 7,891

Consumer Discretionary

National Bank of Greece (long CFD) 7,873 1.0 (320)

Financials

TAV Havalimanlari Holding 7,796 1.0 7,796

Industrials

Forty largest long exposures 740,284 98.2 431,194

Other long exposures 367,495 48.8 272,614

Total long exposures before long futures and hedges (136 companies) 1,107,779 147.0 703,808

Forty Largest Holdings continued

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Forty Largest Holdings continued

STRATEGY

Asset Exposure Fair value

$’000 %

$’000

Add: long future contracts

Hang Seng China Enterprises Index 22,348 3.0 (399)

Total long future contracts 22,348 3.0 (399)

Less: hedging exposures

MSCI Emerging Markets Index (future) (148,757) (19.7) (1,196)

Total hedging exposures (148,757) (19.7) (1,196)

Total long exposures after the netting of hedges 981,370 130.3 702,213

Add: short exposures

Short CFDs (66 holdings) 170,814 22.7 6,830

Short futures (7 holdings) 22,831 3.0 (26)

Short options (2 holdings) 2,306 0.3 914

Total short exposures 195,951 26.0 7,718

Gross Asset Exposure

1,177,321 156.3

Forward currency contracts 364

Portfolio Fair Value

710,295

Net current assets (excluding derivative assets and liabilities) 43,151

Total Net Assets 753,446

1 Asset Exposure (as deﬁned in the Glossary of Terms on page 86) expressed as a percentage of Net Assets.

2 Gross Asset Exposure comprises market exposure to investments of $696,753,000 (per Note 10 on page 57) plus market exposure to derivative instruments of $480,568,000.

(per Note 11 on page 60).

3 Portfolio Fair Value comprises investments of $696,753,000 plus derivative assets of $25,399,000 less derivative liabilities of $11,857,000. (per the Statement of Financial

Position on page 47).

Fidelity Emerging Markets Limited | Annual Report 2024

Distribution of the Portfolio

as at 30 June 2024

Sector

% of Net

Assets

Benchmark

Index

Financials 43.8 21.9

Consumer Discretionary 32.7 12.3

Information Technology 28.9 25.0

Materials 21.5 6.9

Industrials 12.7 6.9

Consumer Staples 8.0 5.2

Communication Services 5.3 8.9

Energy 5.0 5.2

Utilities 5.0 3.0

Real Estate 3.1 1.5

Health Care 0.7 3.2

Investment Funds 0.6 –

Others 8.7 –

Total excluding hedging 176.0 100.0

Hedging (19.7) –

Total including hedging 156.3 100.0

1 Asset Exposure is expressed as a percentage of Net Assets.

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS STRATEGY

Country

% of Net

Assets

Benchmark

Index

India 23.4 19.2

Taiwan 19.1 19.4

China 18.7 25.1

South Africa 13.1 3.0

Brazil 11.9 4.2

South Korea 10.0 12.2

Mexico 6.9 2.1

Saudi Arabia 6.4 3.9

Kazakhstan 6.2 –

Canada 5.6 –

Greece 4.2 0.5

Indonesia 4.1 1.6

Poland 4.0 1.0

United States of America 3.9 –

Hong Kong 3.7 –

Vietnam 2.7 –

United Arab Emirates 2.2 1.1

Japan 1.9 –

Georgia 1.8 –

Netherlands 1.6 –

Peru 1.6 0.3

Burkina Faso 1.5 –

Hungary 1.4 0.2

Thailand 1.1 1.3

Turkey 1.0 0.8

France 1.0 –

Romania 0.8 –

Chile 0.7 0.4

Philippines 0.7 0.5

Kuwait 0.7 0.7

Nigeria 0.7 –

Panama 0.6 –

Cayman Islands 0.6 –

Germany 0.6 –

Zambia 0.6 –

United Kingdom 0.6 –

New Zealand 0.5 –

Australia 0.5 –

Uruguay 0.4 –

Finland 0.2 –

Cyprus 0.1 –

Others 8.7 2.5

Total excluding hedging 176.0 100.0

Hedging (19.7) –

Total including hedging 156.3 100.0

1 Asset Exposure is expressed as a percentage of Net Assets.

Distribution of the Portfolio continued

Fidelity Emerging Markets Limited | Annual Report 2024

Ten Highest Contributors to NAV relative return %

MakeMyTrip +2.8

Kaspi KZ +2.7

TCS Group +2.4

Nu Holdings +1.7

Brilliance China Auto +1.4

Alkhorayef Water & Power Technologies +1.3

Short Position +1.2

Taiwan Semiconductor Manufacturing +1.2

Short Position +0.8

FPT Corporation +0.8

Ten Highest Detractors from NAV relative return %

China Mengniu Dairy Company -2.2

AIA Group Limited -2.0

Li Ning -1.9

HDFC Bank -0.9

Armac Locacao Logistica E Servicos -0.9

Short Position -0.8

Zhongsheng Group -0.8

Localiza Rent A Car -0.7

First Quantum Minerals -0.7

PDD Holdings -0.7

Note: Derivative positions are included in the above investment positions.

Source: Fidelity International.

Attribution Analysis

as at 30 June 2024

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS STRATEGY

Five Year Record

For the year ended 30 June 2024 2023 2022 2021 2020

Investment Performance

Net Asset Value per Participating Preference

Share total return (%)

+18.7 -2.6 -27.9 +24.8 -0.8

Share Price total return (%)

+22.6 -5.2 -30.0 +30.0 -3.3

MSCI Emerging Markets Index total return (%) +13.2 -2.8 -14.9 +26.4 -0.1

Assets

Gross Asset Exposure ($m)

1,177.3 1,185.0 1,120.1 1,679.9 1,205.3

Net Assets ($m) 753.4 796.7 796.8 1,699.1 1,235.8

Gross Gearing (%)

56.3 48.7 40.6 n/a n/a

Net Gearing (%)

4.3 (3.9) (7.6) n/a n/a

Net Asset Value per Participating Preference Share ($)

10.09 8.75 8.75 13.99 10.17

Net Asset Value per Participating Preference Share (£)

7.98 6.88 7.20 10.13 8.23

Share Price data at year end

Share Price (£) 7.03 5.88 6.34 9.19 7.18

Discount (%)

11.90 14.61 12.00 9.28 12.80

Earnings and Dividends paid

Revenue Earnings per Participating Preference Share ($)

0.16 0.22 0.15 0.17 0.15

Capital Earnings/(Loss) per Participating

Preference Share ($)

1.29 (0.06) (5.11) 3.81 (0.53)

Total Earnings/(Loss) per Participating

Preference Share ($)

1.45 0.16 (4.96) 3.98 (0.38)

Dividend per Participating Preference Share $0.20 $0.19 $0.16 $0.18 $0.17

Ongoing Charges (%)

0.81 0.81 0.60 1.03 1.07

1 Alternative Performance Measures. Please see pages 77 and 78 and the Glossary of Terms on pages 86 to 88 for further details.

2 Calculated based on weighted average number of participating preference shares in issue during the year.

Sources: JPMorgan and Datastream

Past performance is not a guide to future returns.

Fidelity Emerging Markets Limited | Annual Report 2024

The Directors have pleasure in presenting the Strategic Report of

the Company. The Chairman’s Statement and Portfolio Managers’

Review on pages 2 to 8 form part of the Strategic Report.

INVESTMENT STRATEGY AND POLICIES

Business and Status

The Company is a closed-ended investment scheme authorised

by the Guernsey Financial Services Commission and is listed on

the London Stock Exchange.

The Company was incorporated in Guernsey on 7 June 1989

and commenced business as an investment company on

19September 1989.

Manager and Investment Manager

The Alternative Investment Fund Manager (FIL Investment

Services (UK) Limited/ the “Manager”) has delegated the role

of Investment Manager to FIL Investments International (‘Fidelity

International’, the ‘Investment Manager’). Both the Manager and

Investment Manager are part of the FIL Group of companies,

collectively‘Fidelity’.

Investment Objective

The Company’s investment objective is to achieve long-

term capital growth from an actively managed portfolio

made up primarily of securities and ﬁnancial instruments

providing exposure to emerging market companies, both listed

andunlisted. The objective was last updated on 1 October 2021.

Investment Policy

The Company seeks to meet its investment objective through

investment in a diversiﬁed portfolio of equity or equity-linked

securities and derivative instruments providing exposure to

emerging market companies.

The Manager integrates sustainability analysis into its investment

process and promotes environmental and social characteristics in

respect of the companies in which it invests.

Modiﬁcation of Investment Objective or Investment Policy

In accordance with the Listing Rules of the Financial Conduct

Authority, any material change to the Company’s published

Investment Objective or Investment Policy will require the prior

approval of both the Financial Conduct Authority and the

shareholders of the Company (by way of an ordinary resolution).

Investment minimum constraints

At least 80% of the Company’s total assets (measured at the

time of investment) will be exposed to companies that have

their head oﬃce in, are listed in or with assets, operations,

income or revenues that are predominantly in or derived from

emergingmarkets.

The Company is not subject to any geographical or sector limits,

although the Manager will maintain a diversiﬁed portfolio of a

minimum of 75 holdings (comprised of a mixture of long and

short exposures) in companies listed in or operating across at

least 15 countries.

Fidelity is not required to seek to ensure that the Company’s

cash resources are fully invested at all times. Accordingly, there

may be times when the Company holds cash or money market

instruments pending investment. The Company’s net market

exposure will not fall below 90% of the Company’s net assets

save to the extent that the Manager is required to realise cash to

fund a tender oﬀer or other return of capital.

Permitted instruments

The Company may invest through equities, index linked securities,

contracts for diﬀerence (“CFDs”), equity linked and other debt

securities, cash deposits, money market instruments, equity

related securities, foreign currency exchange forward transactions

and other interests including derivative instruments. The Company

may invest directly in China A and B Shares and invest in Non-

Voting Depository Receipts, American Depositary Receipts,

Global Depositary Receipts and Equity Linked Notes. References

to “companies” in this investment policy may include operating

businesses that are not in corporate form.

Forward transactions and derivatives, including futures,

options, swaps and contracts for diﬀerence, may be used to

enhance portfolio performance as well as for eﬃcient portfolio

management and hedging.

The Company may invest in unlisted securities and in other

investment funds, subject to the investment restrictions set outbelow.

Investment Restrictions

The Company will invest and manage its assets with an objective

of spreading risk with the following investment restrictions:

• no single or aggregate interest in any one company shall

represent more than 15% of total assets (measured at the

time of investment);

• no more than 15% of total assets (measured at the time of

investment) may be invested in unlisted securities;

• up to 15% of total assets (measured at the time of investment)

may be invested in other listed or unlisted investment funds

where such funds oﬀer the only practicable means of gaining

exposure to a particular emerging market, including other

funds managed or advised by the Manager or its associates;

• up to 20% of total assets (measured at the time of investment)

may be invested in securities and instruments which provide

exposure to companies which do not have their head oﬃce

in, are not listed in or whose assets or operations are not

predominantly in emerging markets, provided that a material

proportion of the income or revenues of each such company

derives from emerging markets.

Although the Company has no present intention to make any such

investments, for so long as required by the Listing Rules, no more

than 10% of the Company’s total assets (measured at the time of

investment) may be invested in other London-listed closed ended

Strategic Report

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS STRATEGY

funds that do not have stated policies to invest no more than 15%

of their total assets in other London-listed closed endedfunds.

Leverage and derivatives

The Company may be geared through (i) borrowing of up to

10% of its net asset value and/or (ii) by entering into derivative

positions (both long and short) which have the eﬀect of gearing

the Company’s portfolio, to enhance performance.

Derivatives usage will focus on, but will not be limited to the

following investment strategies:

• as an alternative form of gearing to bank loans, for instance

by the use of long CFDs;

• to enhance the investment returns by taking short positions in

stocks or markets that the Manager considers to be over-

valued or impaired;

• to enhance positions, manage position sizes and control risk

through the use of options;

• to hedge equity market risks where suitable protection can

be purchased to limit the downside of a falling market at a

reasonable cost; and

• to gain or hedge currency exposure, both long and short,

using foreign currency exchange forward transactions.

The Company is subject to the following limits in respect of its use

of derivatives:

• Net Market Exposure will not exceed 120% of the net asset

value of the Company.

• Gross Asset Exposure will not exceed 165% of the net asset

value of the Company.

• In normal market circumstances, the Company expects that

the Manager will maintain a Net Market Exposure in the

range of 100% to 110%.

Exposure Deﬁnitions

• Long Exposure is the value of the Company’s direct and

indirect investments in long positions (including the economic

value of the exposure to the reference asset of any derivative

instrument).

• Short Exposure is the value of the Company’s direct and

indirect investments in short positions (including the economic

value of the exposure to the reference asset of any derivative

instrument), excluding Hedges.

• Hedges are short positions that demonstrate risk-reduction

qualities by oﬀsetting long positions held by the Company

which have regional congruence and a correlation of at least

80% to the Long Exposure of the Company.

• Net Market Exposure is the net positive market exposure of

the Company’s portfolio, whether through direct or indirect

investment, with short and hedge positions subtracted from

long positions. It is calculated as (Long Exposure – Hedges) –

Short Exposure.

• Gross Asset Exposure is the total market exposure of the

Company’s portfolio, whether through direct or indirect

investment. It is calculated as: (Long Exposure + Short

Exposure) – Hedges.

Benchmark Index

The Company’s benchmark is the MSCI Emerging Markets (Total

Return) Index.

Life of the Company

The Company has committed to hold a continuation vote in 2026

and every ﬁve years thereafter. The Company will propose the

continuation vote at its annual general meeting in the relevant

year and, if the continuation vote is not passed, will thereafter

present proposals to shareholders in respect of the future of

theCompany.

Management

The Company has no employees or premises and the Board

is comprised of non-executive Directors. During the year under

review, the majority of day-to-day operations and functions of the

Company were delegated to Fidelity, and to third party service

providers who are subject to the oversight of the Board. There

are therefore no disclosures to be made in respect of employees.

During the year under review Fidelity, provided investment and

risk management services, JP Morgan Chase Bank was the

Custodian and JP Morgan Administration Services (Guernsey)

Limited was the Administrator. Company Secretarial services are

provided by FIL Investments International. The Board regularly

reviews the performance and risks of its primary service providers

and checks that they have appropriate frameworks in place for

the oversight of their internal controls, monitoring andreporting.

Strategic Report continued

Fidelity Emerging Markets Limited | Annual Report 2024

Strategic Report continued

PRINCIPAL AND EMERGING RISKS AND UNCERTAINTIES,

RISK MANAGEMENT

In accordance with the AIC Code, the Board has a robust ongoing

process for identifying, evaluating and managing the principal

risks and uncertainties faced by the Company, including those that

could threaten its business model, future performance, solvency

or liquidity. The Board, with the assistance of the Manager, has

developed a risk matrix which, as part of the risk management

and internal controls process, identiﬁes the key existing and

emerging risks and uncertainties that the Company faces. The

Audit and Risk Committee continues to identify any new emerging

risks and take any action feasible to mitigate their potential impact.

The risks identiﬁed are placed on the Company’s risk matrix and

graded appropriately. This process, together with the policies

and procedures for the mitigation of existing and emerging risks,

is updated and reviewed regularly in the form of comprehensive

reports considered by the Audit and Risk Committee. The Board

determines the nature and extent of any risks it is willing to take in

order to achieve its strategic objectives.

The Manager also has responsibility for risk management for

the Company. It works with the Board to identify and manage

the principal and emerging risks and uncertainties and to ensure

that the Board can continue to meet its corporate governance

obligations.

Key emerging issues that the Board has identiﬁed include; rising

geopolitical tensions, including contagion of the Ukraine crisis and

escalation of Middle East tensions or tensions between China and

Taiwan into the wider region or an increase in tensions in the South

China Sea; continuous ”high levels of so-called cost of living crisis

impacting demand for UK-listed shares; Artiﬁcial Intelligence hype.

AIas a diﬀerentiator capability and as a multiplier of existing risks

and climate change, which is one of the most critical emerging

issues confronting asset managers and their investors. The Board

notes that the Manager monitors these issues, and has integrated

macro and ESG considerations, including climate change, into the

Company’s investment process. The Board will continue to monitor

how this may impact the Company as a risk, the main risk being the

impact on investment valuations.

The Board considers the following as the principal risks and uncertainties faced by the Company.

Principal Risks Risk Description and Impact Risk Mitigation Trend

Volatility of

Emerging Markets

and Market Risks

• The economies, currencies and ﬁnancial

markets of a number of developing

countries in which the Company invests

may be extremely volatile.

• Further risks on emerging markets from

high inﬂation, and challenging ﬁnancial

conditions exacerbated by the war in

Ukraine and Middle East.

• Market volatility from worsening Chinese/

Taiwanese relations that could prompt the

US to intervene ampliﬁed by uncertainty

of the foreign policy changes following

USelections.

• US imposed Executive Orders prohibiting

US investments in certain Chinese

companies and the passing of the

Holding Foreign Companies Accountable

Act(HFCAA).

• Rising geopolitical tensions, including

contagion of the Ukraine and Middle

East crisis or tensions between China and

Taiwan into the widerregion.

• Regulatory measures impacting sectors

such as IT sector or biotech sector

and a lingering weakness in the real

estatesector.

• The Company’s investments are

geographically diversiﬁed in order

to manage risks from adverse price

ﬂuctuations.

• Russian securities already held at

nilvalue.

• The exposure to any one company

is unlikely to exceed 5% of the

Company’s net assets at the time the

investment is made.

• Review of material economic or

market changes and major market

contingency plans for extreme events.

• China’s integration into the global

ﬁnancial system and into global

supply chains.

• Companies that were solely listed

in the US are listing on the HK or

mainland markets.

• Robust risk governance in place

supports risk proﬁle assessment.

Stable

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Strategic Report continued

STRATEGY

Principal Risks Risk Description and Impact Risk Mitigation Trend

Investment

Performance Risk

• The Portfolio Manager may fail to

outperform the Benchmark Index over

thelonger-term.

• An investment strategy overseen by

the Board to optimise returns.

• A well-resourced team of experienced

analysts covering the market.

• Board scrutiny of the Manager and

the ability in extreme circumstances to

change the Manager.

Stable

Changing Investor

Sentiment

• As a Company investing in emerging

markets, changes in investor sentiment

may lead to the Company becoming

unattractive to investors and reduced

demand for its shares, causing the

discount to widen.

• The Company has an active

investorrelations programme.

• The Board is updated regularly

by theInvestment Manager on

developments in emerging markets

and on theportfolio.

• The Chairman communicates regularly

with major shareholders.

• The Company pays a regular dividend

and considers regularly when and how

to use share buybacks.

Stable

Cybercrime and

Information Security

Risks

• Cybersecurity risk to the functioning

of global markets and to national

infrastructure, as a targeted attack or

overspilling from the Russia/Ukraine war,

Middle East crisis and geopolitical events.

• Cybersecurity risk from Covid or successor

pandemics aﬀecting the functioning of

businesses and globalmarkets.

• External cybercrime threats such as spam

attacks, ransomware, DDoS (Distributed

Denial of Service) attacks, ﬁnancial

theft and reputational risk arising from

accidental data leakage. Ransomware

continues to increase globally and is also

becoming a supply chain risk.

• The risk is monitored by the Board

with the help of the extensive Fidelity

global cybersecurity team and

assurances from outsourced suppliers.

• Development of systems and

procedures by the AIFM resulting from

the experience of the Covid pandemic

and cyber activity following the

Russian invasion of Ukraine.

Increased

Level of Discount

to Net Asset Value

(“NAV”) Risk

• The share price performance lags NAV

performance.

• The Board may fail to implement its

discount management policy.

• Elevated energy costs and cost of living

crisis impact on retail demand for shares.

• The Board reviews the discount on a

regular basis and has the authority to

repurchase shares so shares can trade

at a level close to the NAV.

• If the NAV total return for the ﬁve years

ending 30September 2026 does not

exceed the Benchmark Index, the

Company will make a tender oﬀer

for up to 25% of the shares in issues

(excluding shares held in treasury)

atthattime.

• The Board and manager proactively

try to raise the Company’s proﬁle

through events, presentations, and

meetings with stakeholders, combined

with regular advertising and content

placement on many of the UK’s

leading investment websites and

in key printed media to reach the

broadest possible audience.

Increased

Fidelity Emerging Markets Limited | Annual Report 2024

Strategic Report continued

Principal Risks Risk Description and Impact Risk Mitigation Trend

Lack of Market

Liquidity Risk

• Low trading volumes on stock exchanges

of less developed markets.

• Lack of liquidity from temporary capital

controls in certain markets.

• Exaggerated ﬂuctuations in the value of

investments from low levels of liquidity.

• Restrictions on concentration and

diversiﬁcation of the assets in the

Company’s portfolio to protect the

overall value of the investments and

lower risks of lack of liquidity.

Stable

Business

Continuity & Event

Management Risks

• The wars in Ukraine and Middle East

conﬂict has increased the risk for working

from home or in oﬃces, speciﬁcally

concerning the potential loss of network

outages.

• Business process disruption risk globally

considers Cyber, Geopolitical, and

Earthquake as the top risks, which if were

to materialise to a business disruption

event, the impact could be reputational

in the near term and broader over time

(ﬁnancial, client, industry) depending on

the duration/severity of the events.

• Business Continuity and Crisis

Management Frameworks in place.

Business Continuity Oversight

Group (BCOG) is established which

provides support to drive business

continuity through the organisation

that ranges from strategic input to

operationalprocesses.

• Digital teams continue to maintain

solutions to allow business continuity

and operational.

• Annual requirement to perform

recovery site test, remote working test,

work transfer test and notiﬁcation test.

Stable

Gearing Risk • The Portfolio Manager may fail to use

gearing adequately, resulting in a failure

to outperform in a rising market or to

underperform in a falling market.

• The Board sets a limit on gearing and

provides oversight of the Manager’s

use of gearing.

Stable

Foreign Currency

Exposure Risk

• The functional currency in which the

Company reports its results is US dollars,

whilst the underlying investments are in

diﬀerent currencies. The value of assets

is subject to ﬂuctuations in currency rates

and exchange control regulations.

• The Portfolio Manager does not

hedge the underlying currencies of the

holdings in the portfolio but will take

currency risk into consideration when

making investment decisions.

Stable

Environmental, Social

and Governance

(ESG) Risk

• The adoption of international standards

may adversely impact the proﬁtability of

companies in the portfolio.

• The Manager may fail to meet its

regulatory requirements on ESG, including

climate risk, in relation to the Company.

• Higher degree of valuation and

performance uncertainties and

liquidityrisks.

• Fidelity has adopted a sophisticated

and comprehensive system for

analysing ESG risks, including climate

risk, in investee companies.

• The Portfolio Manager is active in

analysing the eﬀects of ESG when

making investment decisions.

• The Company is not labeled as an

ESG product.

Stable

Key Person Risk • Loss of the Portfolio Manager or other

key individuals could lead to potential

performance and/or operational issues.

• Succession planning for key

dependencies.

• Depth of the team within Fidelity.

• Experience of the analysts covering the

Company’s investments.

Stable

Other risks facing the Company include:

Tax and Regulatory Risks

There is a risk of the Company not complying with the regulatory

requirements of the Guernsey Financial Services Commission,

UK listing rules, corporate governance requirements or local tax

requirements that could result in loss of status as an Authorised

Closed Ended Investment Scheme, becoming subject to additional

tax charges or to exclusion from trading in particular markets.

The Board monitors tax and regulatory changes at each Board

meeting and through active engagement with regulators and

trade bodies by the Manager.

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Strategic Report continued

STRATEGY

Operational Risks

The Company relies on a number of third-party service providers,

principally the Manager, Registrar and Custodian. It is dependent

on the eﬀective operation of the Manager’s control systems

and those of its service providers with regard to the security of

the Company’s assets, dealing procedures, accounting records

and the maintenance of regulatory and legal requirements.

The Registrar and Custodian are all subject to a risk-based

programme of internal audits by the Manager. In addition,

service providers’ own internal control reports are received by

the Board on an annual basis and any concerns are investigated.

Risks associated with these service providers is rated as low,

but the ﬁnancial consequences could be serious, including

reputational damage to the Company.

Professional negligence liability risks

The requirement to cover potential liability risks arising from

professional negligence is covered by the Manager’s own funds.

Suﬃcient capital above the regulatory limit is held which is

monitored by the board of the Manager.

VIABILITY STATEMENT

In accordance with provision 35 of the 2019 AIC Code of

Corporate Governance the Directors have assessed the prospects

of the Company over a longer period than the twelve month

period required by the “Going Concern” basis. The Company is an

investment fund with the objective of achieving long-term capital

growth from an actively managed portfolio made up primarily

of securities and ﬁnancial instruments providing exposure to

emerging market companies, both listed and unlisted. The Board

considers long-term to be at least ﬁve years, and accordingly,

the Directors believe that ﬁve years is an appropriate investment

horizon to assess the viability of the Company, although the life

of the Company is not intended to be limited to this or any other

period. In making an assessment on the viability of the Company,

the Board has considered the following:

• The ongoing relevance of the investment objective in

prevailing market conditions;

• The Company’s NAV and share price performance;

• The principal and emerging risks and uncertainties facing the

Company as set out above and their potential impact;

• The future demand for the Company’s shares;

• The Company’s share price discount to its NAV;

• The liquidity of the Company’s portfolio;

• Consideration of the continuation vote in 2026;

• The level of income generated by the Company; and

• Future income and expenditure forecasts.

The Company has assumed for the purposes of the viability

statement that the continuation vote in 2026 would be passed.

The Company’s performance for the ﬁve year reporting period

to 30 June 2024 lagged the Benchmark Index, with a NAV total

return of +3.1%, and a share price total return of +2.3% compared

to the Benchmark Index total return of +18.2%.

The Board regularly reviews the investment policy and considers

whether it remains appropriate. The Board has concluded that

there is a reasonable expectation that the Company will be able

to continue in operation and meet its liabilities as they fall due

over the next ﬁve years based on the following considerations:

• The Investment Manager’s compliance with the Company’s

investment objective and policy, its investment strategy and

asset allocation;

• The fact that the portfolio comprises suﬃcient readily

realisable securities which can be sold to meet funding

requirements if necessary; and

• The ongoing processes for monitoring operating costs

and income which are considered to be reasonable in

comparison to the Company’s total assets.

When considering the risk of under-performance, a series of

stress tests were carried out including in particular the eﬀects of

any substantial future falls in investment value on the ability to

maintain dividend payments and repay obligations as and when

they arise.

In preparing the Financial Statements, the Directors have

considered the impact of climate change, particularly in the

context of the climate change risk identiﬁed within the ESG

Risk on page 24. The Board has also considered the impact of

regulatory changes and signiﬁcant market events and how this

may aﬀect the Company. In addition, the Directors’ assessment

of the Company’s ability to operate in the foreseeable future is

included in the Going Concern Statement which is included in the

Directors’ Report on page35.

Promoting the Success of the Company

The Company is not required to comply with the provisions of

the UK Companies Act 2006, but it is a requirement of the AIC

Code of Corporate Governance to report upon Section 172

of this statute irrespective of domicile. Section 172 recognises

that Directors of a company must act in a way they consider,

in good faith, would be most likely to promote the success of

the Company for the beneﬁt of its members as a whole, and

in doing so have regard (amongst other matters) to the likely

consequences of any decision in the long-term; the need to foster

relationships with the Company’s suppliers, customers and others;

the impact of the Company’s operations on the community and

the environment; the desirability of the Company maintaining a

reputation for high standards of business conduct; and the need

to act fairly as between members of the Company.

Fidelity Emerging Markets Limited | Annual Report 2024

Strategic Report continued

As an externally managed Investment Company, the Company

has no employees or physical assets, and a number of the

Company’s functions are outsourced to third parties. The key

outsourced function is the provision of investment management

services by the Manager, but other professional service

providers support the Company by providing administration,

custodian, banking and audit services. The Board considers the

Company’s key stakeholders to be the existing and potential

shareholders, the external appointed Manager and other third-

party professional service providers. The Board considers that

the interest of these stakeholders is aligned with the Company’s

objective of delivering long-term capital growth to investors,

in line with the Company’s stated objective and strategy,

while providing the highest standards of legal, regulatory and

commercial conduct.

The Board, with the Portfolio Manager, sets the overall investment

strategy and reviews this regularly. In order to ensure good

governance of the Company, the Board has set various limits on

the investments in the portfolio, whether in the maximum size of

individual holdings, the use of derivatives, the level of gearing

and others. These limits and guidelines are regularly monitored

and reviewed and are set out on pages 20 and 21.

The Board places great importance on communication with

shareholders and is committed to listening to their views. The

primary medium through which the Company communicates

with shareholders is through its Annual and Half Year Financial

Reports. Monthly factsheets are also produced. Company related

announcements are released via the Regulatory News Service

(‘RNS’) to the London Stock Exchange. All of the aforementioned

information is available on the Company’s website www.ﬁdelity.

co.uk/emergingmarkets. Shareholders may also communicate with

Board members at any time by writing to the Company Secretary at

FIL Investments International, Beech Gate, Millﬁeld Lane, Tadworth,

Surrey KT20 6RP or by email at investmenttrusts@ﬁl.com. The

Portfolio Managers meet with major shareholders, potential

investors, stock market analysts, journalists and other commentators

throughout the year. These communication opportunities help inform

the Board in considering how best to promote the success of the

Company over the long-term.

The Board seeks to engage with the Manager and other service

providers and advisers in a constructive and collaborative way,

promoting a culture of strong governance, while encouraging

open and constructive debate, in order to ensure appropriate

and regular challenge and evaluation. This aims to enhance

service levels and strengthen relationships with service providers,

with a view to ensuring shareholders’ interests are best served,

by maintaining the highest standards of commercial conduct

while keeping cost levels competitive.

Whilst the Company’s direct operations are limited, the Board

recognises the importance of considering the impact of the

Company’s investment strategy on the wider community and

environment. The Board believes that a proper consideration of

ESG issues aligns with the Company’s investment objective to

deliver long-term growth in both capital and income, and the

Board’s review of the Manager includes an assessment of their

ESG approach.

In addition to ensuring that the Company’s investment objective

was being pursued, key decisions and actions taken by the

Directors during the reporting year, and up to the date of this

report, have included:

• Marketing & PR

The Board has been proactive in its eﬀorts to promote

the success of the Company. It has worked closely with

the Manager, utilising the Manager’s extensive marketing

capabilities, in combination with the Company’s appointed

stockbrokers, and public relations ﬁrm to execute a

comprehensive promotional programme for the Company.

• Discount Control – Share Buybacks

In November 2023 the Company announced a share buyback

programme to address the discount to NAV at which the

Company’s shares trade with the ambition that it may

ultimately be maintained in single digits in normal market

conditions on a sustainable basis.

• Discount Control – Tender Oﬀer

In recognition of the imbalance between demand and supply

of its shares the Company undertook atender oﬀer for

14.99% of its issued share capital in March2024. The tender

was priced at a 2% discount to the Net Asset Value per Share

as at 6.00 p.m. on 22 March 2024 and resulted in 13,531,881

participating preference shares being repurchased by the

Company andcancelled.

• Dividend

The decision to recommend a dividend of $0.19 per

Participating Preference Share in respect of the year ended

30 June 2023 (2022: $0.16). Shareholders approved the

dividend at the 2023 AGM.

Board Diversity

The Board’s overriding intention is to ensure that it is made up

of the best combination of people in order to achieve long-term

capital growth for the Company’s shareholders from an actively

managed portfolio of investments. To this eﬀect, the Board, as

part of its succession plan, will continue to appoint individuals

who, together as a Board, will aim to ensure the continued

optimal promotion of the Company in the marketplace.

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Strategic Report continued

STRATEGY

The table below reports the gender diversity of the Board as at

30 June 2024.

Gender Reporting

Number of

Board

Members

Percentage

of the Board

Number of

Senior Board

Positions

(Senior

Independent

Director and

Committee

Chair)

Men 3 60% 2

Women 2 40% 1

The Board’s composition has met the target of 40% of women on

FTSE 350 company boards ahead of the 2025 deadline as set by

the FTSE Women Leaders Review. The Board also meets the FCA

target that one of the senior Board positions is held by a woman.

This senior position is held by Heather Manners as the Chairman

of the Board and the Nomination Committee.

The Board meets the recommendations of the Parker Review

Committee that each FTSE 250 company should have at least

one director from an ethnic minority background by 2024 so

as to improve the ethnic and cultural diversity of UK company

boards as can be seen from the table below. The Board also

meets the FCA targets that at least one Director is from an ethnic

minoritybackground.

Ethnic Background Reporting

Number of

Board

Members

Percentage

of the Board

Number of

Senior Board

Positions

(Senior

Independent

Director and

Committee

Chair)

White British

or other White

(including minority

white groups) 4 80% 3

Asian/Asian British 1 20% 0

CORPORATE AND SOCIAL RESPONSIBILITY

Environmental, Social and Governance (“ESG”) in the

Investment Process

The Board has contracted with the Manager to provide the

Company with investment management services. The Board

believes that ESG considerations are an important input into

the assessment of the value of its investments. The investment

universe is undergoing signiﬁcant structural change and is likely

to be impacted by increasing regulation as a result of climate

change and other social and governance factors. The Board is

committed to reviewing how the Manager applies ESG factors

in the investment process. The Fidelity group of companies

(including the Manager and Investment Manager) sets out

its commitment to responsible investing and provides a copy

of its detailed Responsible Investing at www.ﬁdelity.co.uk/

responsible-investing.

Socially Responsible Investment

The Manager’s primary objective is to produce superior ﬁnancial

returns for the Company’s shareholders. It believes that high

standards of corporate social responsibility (CSR) make good

business sense and have the potential to protect and enhance

investment returns.

Corporate Engagement

The Board believes that the Company should, where appropriate,

take an active interest in the aﬀairs of the companies in which

it invests and that it should exercise its voting rights at their

general meetings. It delegates the responsibility for corporate

engagement and shareholder voting to the Investment Manager

who updates the Board on any issues and activities. These

activities are reviewed regularly by the Manager’s corporate

governance team.

Streamlined Energy and Carbon Reporting (SECR)

As an investment company with all its activities outsourced to

third parties, the Company’s own direct environmental impact is

minimal. The Company has no premises, consumes no electricity,

gas or diesel fuel and consequently does not have a measurable

carbon footprint. The Company is categorised as a low energy

user (less than 40MWH) under the Streamlined Energy & Carbon

Reporting regulations and therefore is not required to disclose

any energy and carbon information in this Annual Report.

Task Force on Climate-Related Financial Disclosures (TCFD)

Product reports of Task Force on Climate-related Financial

Disclosures (TCFD) can be obtained via the Additional

Information section on the Company’s website at

www.ﬁdelity.co.uk/emergingmarkets.

Future Developments

Some trends likely to aﬀect the Company in the future are

common to many investment companies together with the impact

of regulatory change and emerging risks. The factors likely to

aﬀect its future development, performance and position are set

out in the Chairman’s Statement and the Portfolio Manager’s

Review on pages 2 to 8.

By Order of the Board

FIL Investments International

Secretary

8 October 2024

Fidelity Emerging Markets Limited | Annual Report 2024

Heather Manners

Chairman of the Board and Nomination

Committee

Appointed 5 May 2022

Appointed Chairman of the Board

on8December 2022.

Heather Manners (British) is an award-winning market

professional with some 34 years’ experience of investment in

Asia, mostly recently, and for the past 15 years as the co-founder,

CEO and CIO of Prusik Investment Management. Heather is also

a non-executive director of Montanaro Asset Management and

Collidr Asset Management respectively and previously was a

non-Executive Director of Aberdeen New Dawn. Heather began

her career at Henderson Global Investors Limited where, latterly,

she was Head of Asia and Emerging Markets. Ms Manners

resides in the UK.

Torsten Koster

Senior Independent Director

Appointed 1 July 2020

Torsten Koster (Swiss) has over 30 years’ experience working for

large multi-national companies. He spent two periods at Nestle

SA (1991-1997 and 2003-2016). During his second term Torsten

held the positions of Chief Financial Oﬃcer Nestle Russia &

Eurasia between 2007-2011 and Chief Financial Oﬃcer Nestle

Nespresso SA from 2011-2016. He also held the positions of

Chief Financial Oﬃcer at Lukoil SA for three years from 1998-2000

and subsequently at Elca Informatique SA between 2000-2003.

In 2016 Torsten founded his own consultancy business, Baussan

Concept SA which specialized in providing due diligence and

portfolio services to European and US based private equity ﬁrms.

Torsten has held a number of Board member roles. Director

of SodaStream International from 2016-2018 (NASDAQ:SODA),

ViceChairman of Natra SA, Spain from 2019-2022. He is

Chairman of the Board of Banque Heritage SA and and Director

of ECOM Agroindustrial SA (both of which are unlisted entities).

Heholds a Masters degree from HEC Lausanne. Mr Koster

resides inSwitzerland.

Mark Little

Audit and Risk Committee Chairman

Appointed 17 January 2024

Appointed Chairman of Audit and Risk

Committee 17 January 2024

Mark Little (British) is a Chartered Accountant with extensive

ﬁnancial services experience in fund management, research, and

private banking, and has a strong understanding of compliance

and regulation in the modern ﬁnancial services world.

He is a non-executive Director and Chairman of the audit

committees of BlackRock Smaller Companies Trust plc, Majedie

Investments Plc and Abrdn Equity Income Trust plc. Previously Mr

Little was a non-executive Director and Chair of the Audit and Risk

Committee of STS Global Income & Growth Trust plc, Managing

Director, Scotland & Northern Ireland at Barclays Wealth (formerly

Gerrard) and Global Head of Automotive Research at Deutsche

Bank. Mr Little has a wealth of experience in the ﬁnancial services

sector and began his career as a fund manager with Scottish

Widows Investment Management after qualifying as a chartered

accountant with Price Waterhouse in 1991. He subsequently

worked as Global Head of Automotive Research for Deutsche Bank

and joined Barclays Wealth in 2005, where he became Managing

Director of Barclays Wealth (Scotland and Northern Ireland).

Mr Little is an Accountancy and Economics graduate from

Aberdeen University.

Katherine Tsang

Director

Appointed 19 July 2017

Katherine Tsang (Canadian) spent 22 years with Standard

Chartered Bank, latterly in the role of Chairperson of Greater

China, before retiring in 2014. Following her retirement, Ms Tsang

founded Max Giant that trades in diﬀerent markets as well as

making direct investments in Asia. Currently, Ms Tsang is the

Chief Executive Oﬃcer of HK Acquisition Corporation, she is also

an Independent Non-Executive Director at China CITIC Bank

International Limited, Fosun International Limited and Budweiser

Brewing Company APAC Limited.

She also serves as a member of the Advisory Council for China of

the City of London, and is an honorary Board member of Shanghai

Jiao Tong University. Previous Directorship has included serving as

an independent Non-Executive Director of Gap Inc., and Baoshan

Iron & Steel Co. Limited, a member of the World Economic Forum’s

Global Agenda Council on China, and a member of Sotheby’s

Advisory Board. Ms Tsang resides in Hong Kong.

Board of Directors

Committee membership key

Audit and Risk

Nomination

Committee Chair

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYFINANCIALINFORMATION FOR SHAREHOLDERS GOVERNANCE

Board of Directors continued

Dr Simon Colson

Director

Appointed 1 July 2019

Dr Simon Colson (British) has over 30 years’ experience in

ﬁnancial markets, working in investment banking, investment

management and ﬁnancial consulting. From 1995-2001 he was

Managing Director, Deutsche Bank AG London, in charge of

closed-end fund origination and distribution, and in previous roles

was responsible for the launch, restructuring and repurposing of

a signiﬁcant number of investment companies. From 2002-2005

he was a non-executive director of The Association of Investment

Companies. In 2002 he founded his own FCA regulated consulting

and distribution business which raised assets for emerging

managers across a range of traditional and alternative asset

classes (including closed-end funds). In 2017 he relinquished his

FCA license to concentrate on unregulated advisory and non-

executive work.

He is a qualiﬁed Medical Doctor and holds an MBA in Finance

& Investment from Bayes Business School (University of London).

DrColson resides in theUK.

Committee membership key

Audit and Risk

Nomination

Committee Chair

Fidelity Emerging Markets Limited | Annual Report 2024

Directors‘ Report

The Directors present their thirty-ﬁfth Annual Financial Report of the

Company, covering the year ended 30June 2024.

FINANCIAL PERFORMANCE

The results and reserve movements for the year are set out in the

Statement of Comprehensive Income and Statement of Financial

Position Income on pages 45 and 47 and the Notes to the

Financial Statements on pages 49 to 76.

Results and Dividends

The proﬁt for the year for the Company amounted to $126,065,000,

this compared to a proﬁt of $14,549,000 in the previous year.

Refer to the Portfolio Manager’s Review on pages 4 to 8 for an

explanation of the Company’sperformance.

Corporate Governance

The Corporate Governance Statement forms part of this report and

can be found on pages 31 to 35.

The Directors propose a dividend of $0.20 per Participating

Preference Share in respect of the year ended 30 June 2024

(2023: $0.19). If approved by shareholders at the AGM

on 10December 2024, the dividend will be payable on

13December 2024 to shareholders on the register at close

of business on 15November 2024. The ex-dividend date is

14November 2024.

Capital Values

At 30 June 2024, the value of Equity Shareholders’ Funds was

$753,446,000 (2023: $796,734,000) a decrease of $43,288,000.

The Net Asset Value per Participating Preference Share was

$10.09 (2023:$8.75).

Key Performance Indicators

The Financial Highlights and Performance section pages inside

the front cover show the Company’s Key Performance Indicators

including its performance and discount to its NAV over the last

ﬁve years.

SHAREHOLDERS

Notiﬁable Interests in the Company’s Voting Right

During the ﬁnancial year, the following shareholders declared a notiﬁable interest in the Company’s voting rights:

Shareholders

Participating Preference

Shares Held

% Shares held

in Issue

Date of

Notiﬁcation

Saba Capital Management, L.P. 4,354,517 5.67 03 April 2024

City of London Investment Management Company Limited 21,352,362 27.98 16 May 2024

The following updates to notiﬁable interests in the Company’s voting rights have been declared post the ﬁnancial year-end:

Shareholders

Participating Preference

Shares Held

% Shares held

in Issue

Date of

Notiﬁcation

City of London Investment Management Company Limited 20,917,518 28.02 02 July 2024

City of London Investment Management Company Limited 20,840,922 27.96 03 July 2024

City of London Investment Management Company Limited 20,327,509 28.01 13 September 2024

City of London Investment Management Company Limited 20,245,652 27.96 18 September 2024

City of London Investment Management Company Limited 20,295,925 28.03 19 September 2024

As at 31 August 2024, the Board is aware of the following signiﬁcant holdings in the Company

Shareholder

Participating Preference

Shares Held

% Shares

in Issue

City of London Investment Management Company Limited 20,064,023 27.52

Strathclyde PF 16,139,666 22.13

Allspring Global Investments 8,865,271 12.16

Lazard Asset Management 6,821,358 9.35

Note: All of the above % Shares in Issue are calculated based on the number of shares in issue with voting rights as at 31 August 2024,

being 72,916,888 Participating Preference Shares.

Annual Report 2024 | Fidelity Emerging Markets Limited

FINANCIALINFORMATION FOR SHAREHOLDERS GOVERNANCE STRATEGY

This Corporate Governance Statement forms part of the Directors’

Report. The Company is committed to maintaining high standards

of corporate governance. Accordingly, the Board has put in

place a framework for corporate governance which it believes is

appropriate for an investment company.

The Board is accountable to shareholders for the governance of

the Company’s aﬀairs. The Directors use this Report to detail the

Company’s corporate governance statement.

The Company is a member of the Association of Investment

Companies (‘AIC’) and the Board has considered the Principles

and Provisions of the 2019 AIC Code of Corporate Governance

(‘AIC Code’). The AIC Code addresses the Principles and

Provisions set out in the 2018 UK Corporate Governance Code

(‘UK Code’), as well as setting out additional Provisions on

issues that are of speciﬁc relevance to the Company. The

Board considers that reporting against the Principles and

Provisions of the AIC Code, which has been endorsed by the

Financial Reporting Council and the Guernsey Financial Services

Commission provides more relevant information to shareholders.

The Company is an Authorised Closed Ended Investment Scheme

regulated by the Guernsey Financial Services Commission

(‘GFSC’). The GFSC requires compliance with the principles

set out in the Finance Sector Code of Corporate Governance

(‘Guernsey Code’), or alternative codes accepted by the GFSC, in

the context of the nature, scale and complexity of the business.

As a Guernsey incorporated company with a premium listing on

the London Stock Exchange within the FTSE 250, the Company

is required to comply with Listing Rule 9.8.7 (for overseas

incorporated companies). This requires the Company to state

how it has applied the main principles set out in the UK Code

and whether it has complied with these provisions throughout

the accounting period. The AIC Code can be found on the AIC’s

website at www.theaic.co.uk and the UK Code on the FRC’s website

at www.frc.org.uk.

Statement of Compliance

The Board conﬁrms that during the year under review, the Company

has complied with the provisions of the AIC Code and therefore,

insofar as they apply to the Company, with the provisions of the 2018

UK Code and Guernsey Code except as noted below.

• The role of Chief Executive

Since all Directors are non-executive and day-to-day

management responsibilities were delegated to the

Manager, Investment Manager, and other third party service

providers, the Company does not have a Chief Executive.

• Executive Directors’ remuneration

As the Board has no executive Directors, it is not required

to comply with the principles of the UK Code in respect

of executive Directors’ remuneration and does not have

aRemuneration Committee.

• Nomination Committee

All Directors are members of the Nomination Committee.

Given the size of the Board, the Board believes that it is

important that all Directors are involved in the evaluation and

appointment of new Directors from an early stage.

• Internal audit function

As the Company has no employees and delegates its

day-to-day operations to the Manager, Investment Manager,

and other third party service providers, the Board has

determined that there is no requirement for an internal audit

function. The Directors annually review whether a function

equivalent to internal audit is needed and will continue to

monitor the Company’s systems of internal controls in order to

provide assurance that they operate as intended.

• Workforce policies and practices

As the Company has no employees and delegates its

day-to-day operations to the Manager, Investment Manager,

and other third party service providers, it is not required to

comply with this provision.

The Board is committed to the continuing compliance with the

AIC Code.

REGULATORY DISCLOSURES

The Alternative Investment Fund Managers

Directive(‘AIFMD’)

FIL Investment Services (UK) Limited is organised under the

laws of England and Wales and qualiﬁes as an EU alternative

investment fund manager (‘AIFM’). Article 22 of AIFMD requires

certain qualitative and quantitative disclosures on remuneration

to assist the understanding of the risk proﬁle of the Company.

Details of Fidelity International’s Remuneration Policy during the

year under review and amounts attributable to the Company are

available on page 85.

UK Listing Authority Listing Rules (‘LR’) – compliance with

rule9.8.4

None of the disclosures required under LR 9.8.4 are applicable

tothe Company.

Corporate Governance Statement

Fidelity Emerging Markets Limited | Annual Report 2024

ANNUAL GENERAL MEETING

This year’s AGM will be held on Tuesday, 10 December 2024

at 11a.m. at the registered oﬃce of the Company, Level 3,

MillCourt La Charroterie, St Peter Port, Guernsey GY1 1EJ.

In addition to the ordinary business to be conducted at the

meeting, the following special business will be proposed:

Authority to purchase own shares

Special Resolutions – requiring 75% of votes in favour

Resolution 12

The Directors are seeking to renew the authority to purchase

shares in the market of up to 10,755,137 Participating Preference

Shares (respectively equivalent to 14.99 per cent. of the shares of

the issued number of Participating Preference Shares at the date

of this document or, if lower, such number as is equal to 14.99%

of the issued number of Participating Preference Shares at the

date of passing the resolution).

The maximum price which may be paid for a Participating

Preference Share is an amount equal to 105% of the average of

the middle market quotations for a Participating Preference Share

taken from the London Stock Exchange Daily Oﬃcial List for the

ﬁve business days immediately preceding the day on which the

Participating Preference Share is purchased.

The authority hereby conferred shall expire at the conclusion of

the Annual General Meeting of the Company to be held in 2024

unless such authority is renewed prior to such time.

The Company may make a contract to purchase Participating

Preference Shares under the authority hereby conferred prior to the

expiry of such authority which will or may be executed wholly or partly

after the expiration of such authority and may make a purchase of

Participating Preference Shares pursuant to any such contract.

Resolution 13

Resolution 13 disapplies the pre-emption rights contained in the

Articles so that the Board has authority to allot and issue (or

sell from treasury) shares for cash on a non-pre-emptive basis in

respect of 7,188,217 Participating Preference Shares (equivalent

to 10 per cent. of the Participating Preference Shares in issue as

at the latest practicable date prior to the date of publication of

this document (excluding in each case shares held in treasury)).

The disapplication expires on the date falling ﬁfteen months after

the date of passing of Resolution 13 or the conclusion of the next

annual general meeting of the Company, whichever is the earlier

and permits the Board to allot and issue shares (or sell shares

from treasury) after expiry of the disapplication if it has agreed to

do so beforehand. Shares issued (or sold from treasury) pursuant

to the disapplication would not be issued at a price that is less

than the prevailing net asset value per share of the relevant class.

The resolution to approve disapplication of pre-emption rights in

respect of issues of shares for cash is set at 10 per cent. of the

Participating Preference Shares in issue (excluding shares held in

treasury). As the issue of such shares (or sale from treasury) by the

Company on a non-pre-emptive basis is subject to the additional

qualiﬁcation that the relevant shares must be issued for a price at

least equal to the prevailing net asset value for the relevant class of

shares, the Board believes that the existing authority to issue new

shares for cash equal to 10 per cent. of the Participating Preference

Shares in issue (excluding shares held in treasury) is appropriate.

The Directors have no present intention to exercise the authority

conferred by Resolution 13.

Recommendation

The Board considers that the passing of all resolutions being

put to the Company’s AGM would be in the best interest of

the Company and its shareholders as a whole. It therefore

recommends that shareholders vote in favour of resolutions1

to13, as set out in the Notice of Annual General Meeting.

Corporate Governance Statement continued

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS GOVERNANCE

Corporate Governance Statement continued

THE BOARD

Board Composition

As at the date of this report, the Board, chaired by Heather Manners,

consists of ﬁve non-executive Directors. Julian Healy, Director and

Chairman of the Audit and Risk Committee retired from the Board

on 17 January 2024 due to personal reasons and was succeeded

by Mark Little on the same date. The Directors believe that, between

them, they have good knowledge and wide experience of business

in the emerging markets region, unlisted investments and their

valuations, and of investment companies, and that the Board has

an appropriate balance of skills, experience, independence and

knowledge of the Company and length of service to discharge

its duties and provide eﬀective strategic leadership and proper

governance of the Company.

Torsten Koster is the Senior Independent Director and fulﬁls the role

as a sounding board for the Chairman, intermediary for the other

Directors as necessary and acts as a channel of communication

for shareholders in the event that contact through the Chairman is

inappropriate. Biographical details of all Directors are on pages 28

and 29.

Training, Development and Board Evaluation

On appointment, Directors receive a full, formal and tailored

induction. Directors are also regularly provided with key information

on the Company’s policies, regulatory and statutory requirements

and internal controls. Changes aﬀecting Directors’ responsibilities

are advised to the Board as they arise. Directors also regularly

participate in relevant training and industry seminars. Training and

development needs are considered as part of the evaluation process

and are agreed with the Chairman.

The Board evaluates its performance on an annual basis and

considers the balance of skills, experience, length of service and

the promotion of diversity and inclusion as part of this process.

Anevaluation of the Board, its Committees and the Manager was

undertaken in the form of written questionnaires and discussions.

This process is considered to be constructive in terms of identifying

areas for improving the functioning and performance of the Board

and its Committees and action is taken on the basis of the results.

Itwas concluded that the Chairman, each Director and the Manager

had been eﬀective and continues to demonstrate commitment to

their roles.

In accordance with the AIC Code, consideration is given to the

engagement of an external evaluator on a regular basis. An

independent evaluation of the Board’s performance was last

conducted in June 2023 by Stephenson & Co. The next independent

Board evaluation is due to be conducted in 2025.

The Directors consider that since they do not have executive

roles, it is not necessary to establish a separate Remuneration

Committee. There is also no separate Management Engagement

Committee as the Board, as a whole, regularly meets with the

Manager, the Administrator and the Company Secretary to discuss

theirperformance.

The Board regularly reviews both the performance of, and the

contractual arrangements with FIL Investments International as

Investment Manager. The Management Agreement sets out

matters over which Fidelity International has authority and includes

management of the Company’s assets and the provision of

administrative duties.

The Board reviews the performance of, and the contractual

arrangements with the Administrator and the Custodian. The Board is

satisﬁed that the continuing appointment of the Administrator and the

Custodian is in the best interests of shareholders.

The Board meets at least four times during the year and between

these meetings there is regular contact with the Company

Secretary, FIL Investments International, who provides the Board

with appropriate and timely information. Attendance at those

meetings is shown on on page 34.

Fidelity Emerging Markets Limited | Annual Report 2024

Board’s Attendance Record for the Reporting Year

Regular

Board

Meetings

Audit and

Risk

Committee

Meetings

Nomination

Committee

Meetings

Heather Manners 4/4 3/3

(1)

1/1

Dr Simon Colson 4/4 3/3 1/1

Julian Healy 2/2

(2)

1/1

(2)

1/1

Torsten Koster 4/4 3/3 1/1

Mark Little 2/2

(3)

2/2

(3)

1/1

Katherine Tsang 4/4 3/3 1/1

(1) Attended the Audit and Risk Committee by invitation but is not a Committee member.

(2) Retired on 17 January 2024.

(3) Appointed 17 January 2024.

Board Responsibilities

The Board has overall responsibility for the Company’s aﬀairs

and for promoting the long-term success of the Company. All

matters which are not delegated to the Company’s Investment

Manager under the Management Agreement are reserved

for the Board’s decision. Matters reserved for the Board

and considered at meetings include decisions on strategy,

management, structure, capital, share issues, share repurchases,

gearing, ﬁnancial reporting, risk management, investment

performance, share price discount, corporate governance,

Board appointments, and the appointment of the Investment

Manager and Company Secretary. The Board also considers

shareholder issues including communication and investor

relations. All Directors are independent of the Investment

Manager and considered to be free from any relationship which

could materially interfere with the exercise of their independent

judgement. The Board follows a procedure of notiﬁcation of other

interests that may arise as part of considering any potential

conﬂicts and is satisﬁed that none has arisen in the year under

review. All Directors are able to allocate suﬃcient time to the

Company to discharge their responsibilities fully and eﬀectively.

Each Director is entitled to take independent professional advice,

at the Company’s expense, in the furtherance of their duties.

Directors’ Insurance and Indemniﬁcation

Directors’ and Oﬃcers’ liability insurance cover is held by the

Company to cover Directors against certain liabilities that may

arise in the course of their duties.

Tenure Policy

Directors appointed to the Board are subject to election and

subsequent annual re-election by shareholders at Annual

General Meetings and normally serve a term of up to nine years

fromelection.

Company Secretary and Administrator

FIL Investments International is appointed as Company Secretary

and JP Morgan Administration Services (Guernsey) Limited is the

Company’s Administrator. Both have been in oﬃce for the whole

year under review.

Board Meetings

The Board considers that it meets suﬃciently regularly to

discharge its duties eﬀectively and the table below gives the

attendance record for the meetings held during the reporting

year. The Portfolio Manager and key representatives of the

Investment Manager are in attendance at these meetings.

OTHER MATTERS

Voting Policy

The Board has authorised Fidelity to exercise the

Company’svoting rights in respect of resolutions

proposedbyinvesteecompanies.

Details of Fidelity’s voting policy can be found at

www.ﬁdelity.co.uk/responsible-investing.

Borrowing Facilities

The Articles of Incorporation permit the Company to borrow up to

10% of the value of its Net Assets. No borrowing facility was used

in either 2023 or 2024.

Discount/Premium to Net Asset Value

The Board reviews the level of the discount or premium between

the middle market price of the Company’s Participating

Preference Shares and their net asset value on a regular basis.

European Union

The Company is a Guernsey based authorised closed-ended

investment company listed in the UK and traded on the London

Stock Exchange.

The European Securities and Markets Authority (‘ESMA’) has

approved the co-operation arrangements between the FCA

andGFSC.

Corporate Governance Statement continued

Annual Report 2024 | Fidelity Emerging Markets Limited

Going Concern

The Financial Statements of the Company have been prepared

on a going concern basis.

The Directors have considered the Company’s investment

objective, risk management policies, liquidity risk, credit risk,

capital management policies and procedures, the nature of its

portfolio and its expenditure and cash ﬂow projections.

The Directors, having considered the liquidity of the Company’s

portfolio of investments (being mainly securities which are readily

realisable) stress testing performed and the projected income

and expenditure, are satisﬁed that the Company is ﬁnancially

sound and has adequate resources to meet all of its liabilities

and ongoing expenses and continue in operational existence for

the foreseeable future. The Board has therefore concluded that

the Company has adequate resources to continue to adopt the

going concern basis for the period to 31 October 2025 which is

at least twelve months from the date of approval of the Financial

Statements. The prospects of the Company over a period longer

than twelve months can be found in the Viability Statement on

page 25.

Signed on behalf of the Board

Heather Manners

Chairman

8 October 2024

Corporate Governance Statement continued

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS GOVERNANCE

Fidelity Emerging Markets Limited | Annual Report 2024

The Directors of the Company are non-executive and by way of

remuneration are entitled to receive fees for their services which

shall not exceed $400,000, exclusive of relevant expenses, in

aggregate per annum. This was approved by shareholders at

the AGM on 8 December 2022 and can only be amended by

shareholder approval at a general meeting.

Directors’ Remuneration

The annual fee structure with eﬀect from 1 July 2024 is as follows:

Chairman – £52,000 (2023: £50,000); Senior Independent Director

– £39,500 (2023: £38,000); Chairman of the Audit and Risk

Committee – £39,500 (2023: £38,000); and Director – £37,500

(2023: £36,000). Directors’ remuneration is reviewed on an annual

basis to ensure that it remains competitive and suﬃcient to

attract and retain the quality of Directors needed to manage the

Company successfully.

Other than fees and reasonable out-of-pocket expenses incurred

in attending to the aﬀairs of the Company, the Directors are not

eligible for any performance related pay or beneﬁts, pension related

beneﬁts, share options, long-term incentive schemes or other taxable

beneﬁts. The Directors are not entitled to exit payments and are not

provided with any compensation for loss of oﬃce. Directors fees are

paid quarterly in arrears. Directors would not serve a notice period if

their appointment were to be terminated.

An ordinary resolution to approve the Directors’ Remuneration Report

will be put to shareholders at the AGM on 10 December 2024.

Directors’ Service Contracts

No Director has a contract of service with the Company.

Accordingly, the Directors are not entitled to any compensation

in the event of termination of their appointment or loss of oﬃce,

other than the payment of any outstanding fees. The Board does

not consider it appropriate that Directors should be appointed

for a speciﬁc term. All Directors are subject to re-election by

shareholders annually A new Director appointed would be

subject to election by shareholders at the next AGM following

their appointment.

Directors’ Emoluments for the Year

The fees paid to each Director for the years ended 30 June 2024

and 2023 are shown in the table below with any year-on-year

diﬀerences being explained:

30 June 2024 30 June 2023

Heather Manners

(1)

£50,000 £38,438

Julian Healy

(2)

£28,500 £19,442

Torsten Koster £38,000 £35,390

Dr Simon Colson £36,000 £31,667

Katherine Tsang £36,000 £31,667

Mark Little

(3)

£17,329 –

£205,829 £156,604

(1) Appointed as a Director on 5 May 2022 and Chairman on 8 December 2022

(2) Appointed as a Director on 12 December 2022 and Audit and Risk Committee

Chairman on 4 May 2023, retired as Director and Audit and Risk Committee

Chairman on 17 January 2024 due to personal reasons.

(3) Appointed as Director and Audit and Risk Committee Chairman on 17 January 2024.

No additional fees or expenses were paid to Directors in respect

of the ﬁnancial year ended 30 June 2024.

Directors’ Interests

The following Directors had a beneﬁcial interest (including family

interests) in the share capital of the Company. The table shows

the number of Participating Preference Shares held by each

Director as at 30 June 2024 and 2023:

Director 30 June 2024 30 June 2023

Heather Manners 10,000 10,000

Torsten Koster 15,000 15,000

Dr Simon Colson 4,416 4,416

Julian Healy

(1)

– 10,000

Katherine Tsang 0 0

Mark Little

(2)

0 –

(1) Appointed 12 December 2022, retired as Director and Audit and Risk Committee

Chairman on 17 January 2024 due to personal reasons.

(2) Appointed as Director and Audit and Risk Committee Chairman on 17 January 2024.

AGM Resolution

An ordinary resolution to approve this Remuneration Report will be put to shareholders at the forthcoming AGM.

Statement of voting at the last AGM

The following table sets out the votes received at the AGM of the shareholders of the Company, held on 8 December 2023 in respect

of the approval of the Directors’ Remuneration Report.

Votes cast for Votes cast against

Total votes cast

Number of

votes withheldNumber % Number %

55,939,687 99.9 3,531 0.0 55,943,420 202

For and on behalf of the Board

Heather Manners

Chairman

8 October 2024

Directors‘ Remuneration Report

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYFINANCIALINFORMATION FOR SHAREHOLDERS GOVERNANCE

Statement of Directors‘ Responsibilities

The Directors are responsible for preparing the Annual Financial

Report 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 International Financial Reporting Standards as adopted by

the European Union to meet the requirements of applicable law

and regulations.

Under company law the Directors must not approve the ﬁnancial

statements unless they are satisﬁed that taken as a whole, they

give a true and fair view of the state of aﬀairs of the Company

and of its proﬁt or loss 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 estimates that are reasonable and

prudent;

• state whether applicable accounting standards have been

followed, subject to any material departures disclosed and

explained in the ﬁnancial statements;

• assess the Company’s ability to continue as a going concern,

disclosing, as applicable, matters related to going concern;

and

• use the going concern basis of accounting unless they either

intend to liquidate the Company or to cease operations, or

have no realistic alternative but to do so.

The Directors are responsible for keeping proper 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 its ﬁnancial statements comply with the Companies

(Guernsey) Law, 2008. They are responsible for such internal

control as they determine is necessary to enable the preparation

of ﬁnancial statements that are free from material misstatement,

whether due to fraud or error, and have general responsibility for

taking such steps as are reasonably open to them to safeguard

the assets of the Company and to prevent and detect fraud and

other irregularities.

The Directors are responsible for the maintenance and integrity

of the corporate and ﬁnancial information included on the

Company’s website. Legislation in Guernsey governing the

preparation and dissemination of ﬁnancial statements may diﬀer

from legislation in other jurisdictions. The work carried out by the

auditor does not include consideration of the maintenance and

integrity of the website and, accordingly, the auditor accepts no

responsibility for any changes that have occurred to the accounts

when they are presented on the website.

The Directors who hold oﬃce at the date of approval of this

Directors’ Report conﬁrm that so far as they are aware, there is

no relevant audit information of which the Company’s auditor

is unaware, and that each Director has taken all the steps he/

she ought to have taken as a Director to make himself or herself

aware of any relevant audit information and to establish that the

Company’s auditor is aware of that information.

Responsibility statement of the Directors in respect of the

Annual Report

The Directors conﬁrm that to the best of their knowledge:

• the ﬁnancial statements, prepared in accordance with the

applicable set of accounting standards, give a true and fair

view of the assets, liabilities, ﬁnancial position and proﬁt or

loss of the Company; and

• the Chairman’s statement, Strategic Report and Portfolio

Managers’ Review includes a fair review of the development

and performance of the business and the position of the

Company, together with a description of the principal and

emerging risks and uncertainties that the Company faces.

The Directors consider the Annual Report, taken as a whole,

is fair, balanced and understandable and provides the

information necessary for shareholders to assess the Company’s

performance, business model and strategy.

There were no instances where the Company is required to make

disclosures in respect of UK Listing Rule 6.6.1 during the ﬁnancial

period under review.

For and on behalf of the Board

Heather Manners

Chairman

8 October 2024

Fidelity Emerging Markets Limited | Annual Report 2024

I am pleased to present the formal report of the Audit and Risk

Committee (the “Committee”) to shareholders. The primary

responsibilities of the Committee are to ensure the integrity

of the Company’s ﬁnancial reporting, the appropriateness of

the risk management and internal controls processes and the

eﬀectiveness of the independent audit process and how this has

been assessed for the year ended 30 June 2024.

The Board established the Committee which consists of all

Directors, with the exception of the Chairman, Heather Manners.

The Committee is chaired by Mark Little.

The Committee has formally delegated duties and responsibilities

with written Terms of Reference, which are available on the

Company’s website.

Role and Responsibilities of the Committee

The Committee’s authority and duties are clearly deﬁned in its

terms of reference which are available on the Company’s pages of

the Manager’s website at www.ﬁdelity.co.uk/emergingmarkets.

These duties include:

• To monitor the integrity of the ﬁnancial statements of the

Company, including its annual and half-yearly reports

andany other formal announcement relating to its

ﬁnancialperformance;

• To review the Company’s accounting policies and any

signiﬁcant ﬁnancial reporting judgements;

• To monitor and review the adequacy and eﬀectiveness of the

internal ﬁnancial control and risk management systems on

which the Company is reliant;

• To review and approve statements to be included in the Annual

Financial Report concerning controls and risk management;

• To report to the Board that they have carried out a robust

assessment of the principal and emerging risks facing

theCompany;

• To provide advice to the Board on whether they consider the

Annual Financial Report, taken as a whole, is fair, balanced

and understandable;

• To make recommendations to the Board in relation to the

appointment, re-appointment and removal of external auditors;

• To monitor the independence and objectivity of external

auditors; and

• To review the audit fees, terms of engagement and provision

of non-audit services by the external auditor.

The 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 Company’s

auditors.

Signiﬁcant accounting matters

During the review of the Company’s ﬁnancial statements for the year ended 30 June 2024, the Audit and Risk Committee considered

the following matters to be signiﬁcant issues, both of which were satisfactorily addressed:

Issue considered How the issue was addressed

Valuation, existence

and ownership of

investments (including

derivatives and

unlisted investments)

The valuation of

investments (including

derivatives and

unlisted investments)

is in accordance with

Accounting Policy

Note2(b) on pages 50

and 51.

The Committee took comfort from the Custodian’s reports that investment related activities are conducted

in accordance with the Company’s investment policy. The Committee received reports from the Manager

and the Administrator which concluded that controls around the valuation, existence and ownership of

investments operate eﬀectively. The valuation of the Company’s unlisted, suspended, and illiquid investments

which are subject to fair value oversight by the Manager’s Fair Value Committee (“FVC”) were reviewed by

the Committee. It receives reporting from the FVC and reviews the proposed valuation methodology to be

adopted.

Speciﬁcally, there are a number of current factors impacting the Company’s Russian investments, such as

markets being closed or with restrictions on trading in certain instruments or with certain counterparties

due to the imposition of sanctions: at the period-end appropriate fair value adjustments to these Russian

investments have been made as proposed by the FVC.

Report of the Audit and Risk Committee

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS GOVERNANCE

Report of the Audit and Risk Committee continued

Auditor independence and assessment

The Committee monitors the European and U.K. legislation

regarding mandatory audit ﬁrm rotation and tendering to ensure

compliance and an external tender was conducted in2023.

As part of its review of the continuing appointment of the Auditor,

the Committee considered the independence of the Auditor along

with the eﬀectiveness of the audit. The Auditor was asked to attest

that KPMG and the audit team members were independent of the

Company. KPMG also conﬁrmed that they had not been engaged

in the provision of any non-audit services to the Company

during the year. Audit eﬀectiveness was assessed by means of

the Auditors’ direct engagement with the Board at Committee

meetings and also by reference to feedback from the Manager

and Administrator. The Committee reviewed the Auditor’s risk

assessment and audit approach at the planning stage and were

briefed on the fulﬁlment of that plan at the completion stage. The

Board conﬁrmed, the recommendation of the Committee, that the

Auditors continued to be independent of the Company.

Auditors Appointment and Tenure

KPMG Channel Islands Limited (“KPMG”) was re-appointed as

the Company’s Auditor (“the Auditor”) on 8 December 2023

following a formal audit tender process in 2023. The Committee

has reviewed the Auditor’s independence and the eﬀectiveness

of the audit process prior to recommending its reappointment

for a further year. The Auditor is required to rotate audit partners

every ﬁve years and this is the second year that the Audit

Partner, Rachid Frihmat, has been in place. The Committee will

continue to review the Auditor’s appointment each year to ensure

that the Company is receiving an optimal level of service. There

are no contractual obligations that restrict the Company’s choice

ofauditor.

Audit Fees

The fees paid to KPMG in respect of audit services for the year

ended 30 June 2024 were $73,500 (2023: $73,000). KPMG did

not provide any non-audit services during the year (2023: None).

Internal Controls

The Board is responsible for the Company’s system of internal

control and for reviewing its eﬀectiveness.

As there is delegation of daily operational activity, described

below, there is no requirement for a direct internal audit function.

The internal control systems are designed to meet the Company’s

particular needs and the risks to which it is exposed. 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.

The services provided to the Company by the Administrator,

such as administration services, and accounting services reﬂect

the system of ﬁnancial and operating controls operating at the

Administrator. The control regime for other services, such as

the Manager, Investment Manager, Custodian and Registrar,

reﬂect the internal controls operated by these respective service

providers.

The Administrator provides semi-annual and annual ﬁnancial

statements based on the requirements of the Company. The

ﬁnancial statements are based on data from the Administrator’s

accounting system including the trial balance, net asset valuation,

purchase and sales report and other investment schedules. All

statements are reconciled and reviewed by the Administrator

using pre-deﬁned checklists and reviewed by the Manager prior

to distribution.

In order for the Directors to review their eﬀectiveness for the

Company’s business, an annual review of all outsourced functions

has taken place. Their performance was monitored against

obligations speciﬁed in the relevant contracts and was found to

be in order.

Service providers report annually on the design and eﬀectiveness

of internal controls operating over the functions provided. Reports

are reviewed by the Committee and any material ﬁndings are

considered by the Board.

The Committee has carried out its annual assessment of the

internal controls of the Company’s service providers for the

year ended 30 June 2024 and considered the internal control

procedures to be adequate based on the ﬁndings of their

respective ISAE 3402 SOC 1 Reports or AAF Reports.

For and on behalf of the Committee

Mark Little

Chairman of the Audit and Risk Committee

8 October 2024

Fidelity Emerging Markets Limited | Annual Report 2024

Report of the Audit and Risk Committee continued

The Board has an established Nomination Committee which

consists of all Directors, chaired by Heather Manners.

The Nomination Committee has formally delegated duties

and responsibilities with written Terms of Reference, which

are available on the Company’s website www.ﬁdelity.co.uk/

emergingmarkets.

The responsibilities of the Nomination Committee are inter alia:

• To regularly review the structure, size and composition

(including the length of service of the Board members, skills,

knowledge, experience and diversity) of the Board and make

recommendations to the Board with regard to any changes.

• To give full consideration to succession planning for Directors,

taking into account the challenges and opportunities facing

the Company, the skills and expertise needed on the Board

in the future and the promotion of diversity of gender, social

and ethnic backgrounds, cognitive and personal strengths.

• To be responsible for identifying and nominating, for the

approval of the Board, candidates to ﬁll Board vacancies as

and when they arise and for overseeing the development of

a diverse pipeline for succession.

Diversity

It is seen as a prerequisite that each member of the Board must

have the skills, experience and character that will enable them

to contribute to the eﬀectiveness of the Board and the success

of the Company. Subject to that overriding principle, diversity of

experience and approach, including gender diversity, amongst

Board members is of great value, and it is the Board’s policy to

give careful consideration to overall Board balance and diversity

in making new appointments to the Board.

Composition and independence

As at 30 June 2024 the Board comprised of three male and two

female Directors. All Directors are non-executive and independent

of both the Company and the Investment Manager. Each Director

is required to disclose any potential conﬂicts of interest at each

Boardmeeting.

Tenure and Succession Planning

The policy on Board refreshment is to ensure continuity and

stability with no more than one Board member retiring and

one successor recruited in each calendar year. In line with the

AIC Code guidelines for independent Directors, individuals

will generally serve on the Board for no more than nine years,

although the Chairman’s term of oﬃce may be extended by a

maximum of three additional years to a total of twelve years.

Inrecruiting new Directors, the aim will always be to preserve or

enhance the skill sets on the Board, taking account of the need to

ensure age, gender and ethnic diversity.

Board re-election and appointments

The Nomination Committee makes recommendations to the Board

for the continuation or cessation of service of Directors and reviews

the tenure of Directors on a three year cycle. It also considers the

election and re-election of Directors ahead of each AGM.

When appointing a new Director, the Board takes care to ensure

that the new Director enhances the balance of skills, diversity

and experience appropriate to the requirements of the Company

and that a new Director has enough time available to properly

fulﬁl their duties. All new Directors undertake a formal induction

and onboarding process. The Directors also have access, where

necessary in the furtherance of their duties, to independent

professional advice at the Company’s expense. Directors are

initially appointed until the following Annual General Meeting

when, under the Company’s Articles of Incorporation, it is required

that they be elected by shareholders.

During the year the Board engaged external recruitment consultant,

Stephenson & Co, which has no connection with the Company, to

facilitate the search for a new independent non-executive Director

to join the Board following Julian Healy’s retirement from the Board

due to personal reasons. As a result of this process, Mark Little was

appointed to the Board on 17 January 2024 as a non-executive

Director and a member of the Audit and Risk Committee, and

the Nomination Committee. Mr Little will stand for election by

shareholders at the forthcoming AGM on 10 December 2024.

All the Directors are retiring in accordance with the AIC Code

and will oﬀer themselves for election or re-election. As each

Director has maintained their eﬀectiveness and commitment to

the Company, the Board endorses them and recommends their

re-election to theshareholders.

Heather Manners

Chairman of the Nomination Committee

8 October 2024

Nomination Committee’s Report

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL GOVERNANCE

Independent Auditor‘s Report to the Members

of Fidelity Emerging Markets Limited

Our opinion is unmodiﬁed

We have audited the ﬁnancial statements of Fidelity Emerging

Markets Limited (the “Company”), which comprise the statement

of ﬁnancial position as at 30 June 2024, the statements of

comprehensive income, changes in equity and cash ﬂows for

the year then ended, and notes, comprising material accounting

policies and other explanatory information.

In our opinion, the accompanying ﬁnancial statements:

• give a true and fair view of the ﬁnancial position of the

Company as at 30 June 2024, and of the Company’s ﬁnancial

performance and cash ﬂows for the year then ended;

• are prepared in accordance with International Financial

Reporting Standards as adopted by the EU; and

• comply with the Companies (Guernsey) Law, 2008.

Basis for opinion

We conducted our audit in accordance with International

Standards on Auditing (UK) (“ISAs (UK)”) and applicable law.

Ourresponsibilities are described below. We have fulﬁlled

our ethical responsibilities under, and are independent of

the Company in accordance with, UK ethical requirements

including the FRC Ethical Standard as required by the Crown

Dependencies’ Audit Rules and Guidance. We believe that

theaudit evidence we have obtained is a suﬃcient and

appropriate basis for our opinion.

Key audit matters: our assessment of the risks of material

misstatement

Key audit matters are those matters that, in our professional

judgment, were of most signiﬁcance in the audit of the ﬁnancial

statements and include the most signiﬁcant assessed risks of

material misstatement (whether or not due to fraud) identiﬁed

byus, 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.

Inarriving at our audit opinion above, the key audit matter was

as follows (unchanged from 2023):

Valuation of ﬁnancial

assets at fair value

through proﬁt or loss,

and derivatives assets

and liabilities The risk Our response

Financial assets at fair

value through proﬁt

or loss: $696,753,000;

(2023:$778,608,000)

Derivative assets:

$25,399,000;

(2023:$9,468,000)

Derivative liabilities:

$11,857,000;

(2023:$12,847,000)

Refer to the report of the

Audit and Risk Committee

on page 38, accounting

policy note 2(b) and 2(q),

and notes 10, 11 and 17.

Basis:

The Company’s investments consist primarily of listed

equity securities from emerging markets and derivative

instrument assets and liabilities (“Investments”).

As at 30 June 2024, the Company had invested the

equivalent of $686,519,000 (2023: $751,117,000)

in listed equity securities, as well as $25,399,000

(2023:$9,468,000) in derivative assets and $11,857,000

(2023:$12,847,000) in derivative liabilities. These

Investments, carried at fair value, are valued by the

Company based on prices obtained from third party

pricing providers.

Risk:

The valuation of the Company’s Investments, given that

it represents the majority of the Company’s net assets,

isconsidered to be the area which has the greatest

eﬀect on our overall audit strategy and allocation of

resources in planning and completing our audit..

Our audit procedures included:

Internal Controls:

We evaluated the design and implementation

of key controls over the valuation of quoted

investments.

Use of KPMG Valuation Specialists:

We engaged our KPMG valuation specialist

to independently price the investments to third

party pricing sources.

Assessing disclosures:

We also considered the Company’s valuation

policies adopted in note 2(b) and the

Company’s disclosures (see note 2(q)) in

relation to the use of estimates and judgements

regarding the valuation of Investments and

derivative instruments and in addition the fair

value disclosures in note 17 for compliance

withIFRS as adopted by the EU.

Our application of materiality and an overview of the scope

of our audit

Materiality for the ﬁnancial statements as a whole was set at

$16m (2023: $15.9m), determined with reference to a benchmark

of net assets of $753.4m, of which it represents approximately 2%

(2023:2%).

In line with our audit methodology, our procedures on individual

account balances and disclosures were performed to a lower

threshold, performance materiality, so as to reduce to an

acceptable level the risk that individually immaterial misstatements

in individual account balances add up to a material amount across

the ﬁnancial statements as a whole. Performance materiality

for the Company was set at 75% (2023: 75%) of materiality for

the ﬁnancial statements as a whole, which equates to $12m

(2023:$11.9m). We applied this percentage in our determination

of performance materiality because we did not identify any factors

indicating an elevated level of risk.

Fidelity Emerging Markets Limited | Annual Report 2024

We reported to the Audit Committee any corrected or uncorrected

identiﬁed misstatements exceeding $800k (2023:$795k),

inaddition to other identiﬁed misstatements that warranted

reporting on qualitative grounds.

Our audit of the Company was undertaken to the materiality

level speciﬁed above, which has informed our identiﬁcation of

signiﬁcant risks of material misstatement and the associated audit

procedures performed in those areas as detailed above.

Going concern

The directors have prepared the ﬁnancial statements on the going

concern basis as they do not intend to liquidate the Company

or to cease its operations, and as they have concluded that the

Company’s ﬁnancial position means that this is realistic. Theyhave

also concluded that there are no material uncertainties that could

have cast signiﬁcant doubt over its ability to continue as a going

concern for at least a year from the date of approval of the

ﬁnancial statements (the “going concern period”).

In our evaluation of the directors’ conclusions, we considered the

inherent risks to the Company’s business model and analysed

how those risks might aﬀect the Company’s ﬁnancial resources

or ability to continue operations over the going concern period.

The risks that we considered most likely to aﬀect the Company’s

ﬁnancial resources or ability to continue operations over this period

was the availability of capital to meet operating costs and other

ﬁnancial commitments.

We considered whether this risk could plausibly aﬀect the liquidity

in the going concern period by comparing severe, but plausible

downside scenarios that could arise from these risks individually

and collectively against the level of available ﬁnancial resources

indicated by the Company’s ﬁnancial forecasts.

We considered whether the going concern disclosure in note 2(a)

to the ﬁnancial statements gives a full and accurate description of

the directors’ assessment of going concern.

Our conclusions based on this work:

• we consider that the directors’ use of the going concern basis

of accounting in the preparation of the ﬁnancial statements

isappropriate;

• we have not identiﬁed, and concur with the directors’

assessment that there is not, a material uncertainty related to

events or conditions that, individually or collectively, may cast

signiﬁcant doubt on the the Company’s ability to continue as

a going concern for the going concern period; and

• we have nothing material to add or draw attention to

in relation to the directors’ statement in the notes to the

ﬁnancial statements on the use of the going concern basis

of accounting with no material uncertainties that may cast

signiﬁcant doubt over the Company’s use of that basis for

thegoing concern period.

However, as we cannot predict all future events or conditions and

as subsequent events may result in outcomes that are inconsistent

with judgements that were reasonable at the time they were made,

the above conclusions are not a guarantee that the Company will

continue in operation.

FRAUD AND BREACHES OF LAWS AND REGULATIONS –

ABILITY TO DETECT

Identifying and responding to risks of material misstatement

due to fraud

To identify risks of material misstatement due to fraud

(“fraudrisks”) we assessed events or conditions that could

indicate an incentive or pressure to commit fraud or provide

an opportunity to commit fraud. Our risk assessment

proceduresincluded:

• enquiring of management as to the Company’s policies and

procedures to prevent and detect fraud as well as enquiring

whether management have knowledge of any actual,

suspected or alleged fraud;

• reading minutes of meetings of those charged with

governance; and

• using analytical procedures to identify any unusual or

unexpected relationships

As required by auditing standards, we perform procedures to

address the risk of management override of controls, in particular

the risk that management may be in a position to make

inappropriate accounting entries. On this audit we do not believe

there is a fraud risk related to revenue recognition because the

Company’s revenue streams are simple in nature with respect

to accounting policy choice, and are easily veriﬁable to external

data sources or agreements with little or no requirement for

estimation from management. We did not identify any additional

fraud risks.

We performed procedures including

• Identifying journal entries and other adjustments to test

based on risk criteria and comparing any identiﬁed entries

tosupporting documentation; and

• incorporating an element of unpredictability in our

auditprocedures.

Identifying and responding to risks of material misstatement

due to non-compliance with laws and regulations

We identiﬁed areas of laws and regulations that could

reasonably be expected to have a material eﬀect on the

ﬁnancial statements from our sector experience and through

discussion with management (as required by auditing standards),

and from inspection of the Company’s regulatory and legal

correspondence, if any, and discussed with management the

policies and procedures regarding compliance with laws and

regulations. As the Company is regulated, our assessment

of risks involved gaining an understanding of the control

environment including the entity’s procedures for complying with

regulatoryrequirements.

Independent Auditor‘s Report to the Members

of Fidelity Emerging Markets Limited continued

Annual Report 2024 | Fidelity Emerging Markets Limited

GOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL STRATEGYGOVERNANCE

The Company is subject to laws and regulations that directly

aﬀect the ﬁnancial statements including ﬁnancial reporting

legislation and taxation legislation and we assessed the extent

of compliance with these laws and regulations as part of our

procedures on the related ﬁnancial statement items.

The Company is subject to other laws and regulations where

the consequences of non-compliance could have a material

eﬀect on amounts or disclosures in the ﬁnancial statements,

forinstance through the imposition of ﬁnes or litigation or impacts

on the Company’s ability to operate. We identiﬁed ﬁnancial

services regulation as being the area most likely to have such

an eﬀect, recognising the regulated nature of the Company’s

activities and its legal form. Auditing standards limit the required

audit procedures to identify non-compliance with these laws

and regulations to enquiry of management and inspection

of regulatory and legal correspondence, if any. Therefore if

a breach of operational regulations is not disclosed to us or

evident from relevant correspondence, an audit will not detect

that breach

Context of the ability of the audit to detect fraud or breaches

of law or regulation

Owing to the inherent limitations of an audit, there is an

unavoidable risk that we may not have detected some material

misstatements in the ﬁnancial statements, even though we

have properly planned and performed our audit in accordance

with auditing standards. For example, the further removed

non-compliance with laws and regulations is from the events and

transactions reﬂected in the ﬁnancial statements, the less likely

the inherently limited procedures required by auditing standards

would identify it.

In addition, as with any audit, there remains a higher risk of

non-detection of fraud, as this may involve collusion, forgery,

intentional omissions, misrepresentations, or the override of

internal controls. Our audit procedures are designed to detect

material misstatement. We are not responsible for preventing

non-compliance or fraud and cannot be expected to detect

non-compliance with all laws and regulations.

Other information

The directors are responsible for the other information. The other

information comprises the information included in the annual

report but does not include the ﬁnancial statements and our

auditor’s report thereon. Our opinion on the ﬁnancial statements

does not cover the other information and we do not express an

audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the ﬁnancial statements, 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

audit, or otherwise appears to be materially misstated. 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.

Disclosures of emerging and principal risks and longer

termviability

We are required to perform procedures to identify whether

there is a material inconsistency between the directors’

disclosures in respect of emerging and principal risks and the

viability statement, and the ﬁnancial statements and our audit

knowledge. We have nothing material to add or draw attention

to in relation to:

• the directors’ conﬁrmation within the Viability Statement

(page 25) that they have carried out a robust assessment

of the emerging and principal risks facing the Company,

including those that would threaten its business model, future

performance, solvency or liquidity;

• the emerging and principal risks disclosures describing

these risks and explaining how they are being managed

ormitigated;

• the directors’ explanation in the Viability Statement (page25)

as to how they have assessed the prospects of the Company,

over what period they have done so and why they consider

that period to be appropriate, and their statement as

to whether 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 period of their assessment,

including any related disclosures drawing attention to any

necessary qualiﬁcations or assumptions.

We are also required to review the Viability Statement, set out on

page25 under the Listing Rules. Based on the above procedures,

we have concluded that the above disclosures are materially

consistent with the ﬁnancial statements and our audit knowledge.

Corporate governance disclosures

We are required to perform procedures to identify whether there

is a material inconsistency between the directors’ corporate

governance disclosures and the ﬁnancial statements and our

audit knowledge.

Based on those procedures, we have concluded that each of the

following is materially consistent with the ﬁnancial statements

and our audit knowledge:

• the directors’ statement that they consider that theannual

report and ﬁnancial statements taken as a whole is fair,

balanced and understandable, and provides the information

necessary for shareholders to assess the Company’s position

and performance, business model and strategy;

• the section of the annual report describing the work of the

Audit Committee, including the signiﬁcant issues that the audit

committee considered in relation to the ﬁnancial statements,

and how these issues were addressed; and

• the section of the annual report that describes the review of

the eﬀectiveness of the Company’s risk management and

internal control systems.

Fidelity Emerging Markets Limited | Annual Report 2024

We are required to review the part of Corporate Governance

Statement relating to the Company’s compliance with the

provisions of the UK Corporate Governance Code speciﬁed by

the Listing Rules for our review. We have nothing to report in

thisrespect.

We have nothing to report on other matters on which we are

required to report by exception

We have nothing to report in respect of the following matters

where the Companies (Guernsey) Law, 2008 requires us to report

to you if, in our opinion:

• the Company has not kept proper accounting records; or

• the ﬁnancial statements are not in agreement with the

accounting records; or

• we have not received all the information and explanations,

which to the best of our knowledge and belief are necessary

for the purpose of our audit.

RESPECTIVE RESPONSIBILITIES

Directors’ responsibilities

As explained more fully in their statement set out on page37,

the directors are responsible for: the preparation of the ﬁnancial

statements including being satisﬁed that they give a true and

fair view; such internal control as they determine is necessary to

enable the preparation of ﬁnancial statements that are free from

material misstatement, whether due to fraud or error; 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 they either intend

to liquidate the Company or to cease operations, or have no

realistic alternative but to do so.

Auditor’s responsibilities

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 our opinion in an auditor’s report. Reasonable assurance

is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to inﬂuence

the economic decisions of users taken on the basis of the

ﬁnancialstatements.

A fuller description of our responsibilities is provided on the FRC’s

website at www.frc.org.uk/auditorsresponsibilities.

The purpose of this report and restrictions on its use by

persons other than the Company’s members as a body

This report is made solely to the Company’s members, as

a body, in accordance with section 262 of the Companies

(Guernsey) Law, 2008. 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.

Rachid Frihmat

For and on behalf of KPMG Channel Islands Limited

Chartered Accountants and Recognised Auditors, Guernsey

8October 2024

Independent Auditor‘s Report to the Members

of Fidelity Emerging Markets Limited continued

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS GOVERNANCE

The notes on pages 49 to 76 form an integral part of these ﬁnancial statements

Year ended 30 June 2024 Year ended 30 June 2023

Note

Revenue

$’000

Capital

$’000

Total

$’000

Revenue

$’000

Capital

$’000

Total

$’000

Revenue

Investment income 3 19,284 – 19,284 22,272 – 22,272

Derivative income 3 19,711 – 19,711 17,709 – 17,709

Other income 3 1,252 – 1,252 620 – 620

Total Income 40,247 – 40,247 40,601 – 40,601

Net gains on investments at fair value

through proﬁt or loss 10 – 81,553 81,553 – 36,553 36,553

Net gains/(loss) on derivative

instruments 11 – 35,890 35,890 – (37,809) (37,809)

Net foreign exchange losses – (1,569) (1,569) – (933) (933)

Total income and gains/(losses) 40,247 115,874 156,121 40,601 (2,189) 38,412

Expenses

Management fees 4 (935) (3,741) (4,676) (923) (3,690) (4,613)

Other expenses 5 (1,631) – (1,631) (1,619) – (1,619)

Proﬁt/(loss) before ﬁnance costs and

taxation 37,681 112,133 149,814 38,059 (5,879) 32,180

Finance costs 6 (21,566) – (21,566) (15,653) – (15,653)

Proﬁt/(loss) before taxation 16,115 112,133 128,248 22,406 (5,879) 16,527

Taxation 7 (2,060) (123) (2,183) (2,622) 644 (1,978)

Proﬁt/(loss) after taxation for the

year attributable to Participating

Preference Shares 14,055 112,010 126,065 19,784 (5,235) 14,549

Earnings/(loss) per Participating

Preference Share (basic and diluted) 8 $0.16 $1.29 $1.45 $0.22 $(0.06) $0.16

The Company does not have any income or expenses that are not included in the proﬁt/(loss) after taxation for the year. Accordingly

the proﬁt/(loss) after taxation for the year is also the total comprehensive income for the year and no separate Statement of

Comprehensive Income has been presented.

The total column of this statement represents the Company’s Statement of Comprehensive Income prepared in accordance with IFRS.

The supplementary information on the allocation between the revenue account and the capital reserve is presented under guidance

published by the AIC.

All the proﬁt/(loss) and total comprehensive income is attributable to the equity shareholders of the Company. There are no

minorityinterests.

No operations were acquired or discontinued in the year and all items in the above statement derive from continuing operations.

Statement of Comprehensive Income

for the year ended 30 June 2024

Fidelity Emerging Markets Limited | Annual Report 2024

The notes on pages 49 to 76 form an integral part of these ﬁnancial statements

Note

premium

account

$’000

Capital

reserve

$’000

Revenue

reserve

$’000

Total

equity

$’000

Total equity at 30 June 2023 6,291 735,860 54,583 796,734

Proﬁt after taxation for the year – 112,010 14,055 126,065

Repurchase and cancellation of the Company’s own shares 14 – (127,125) – (127,125)

Participating Preference Shares repurchased into Treasury 14 – (24,923) – (24,923)

Dividend paid to shareholders 9 – – (17,305) (17,305)

Total equity at 30 June 2024 6,291 695,822 51,333 753,446

Note

premium

account

$’000

Capital

reserve

$’000

Revenue

reserve

$’000

Total

equity

$’000

Total equity at 30 June 2022 6,291 741,095 49,375 796,761

(Loss)/proﬁt after taxation for the year – (5,235) 19,784 14,549

Dividend paid to shareholders 9 – – (14,576) (14,576)

Total equity at 30 June 2023 6,291 735,860 54,583 796,734

Statement of Changes in Equity

for the year ended 30 June 2024

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS FINANCIAL

Note

30 June

2024

$’000

30 June

2023

$’000

Non-current assets

Investments at fair value through proﬁt or loss 10 696,753 778,608

Current assets

Derivative assets 11 25,399 9,468

Amounts held at futures clearing houses and brokers 44,952 18,210

Other receivables 12 8,083 6,480

Cash at bank 8,794 18,057

87,228 52,215

Current liabilities

Derivative liabilities 11 11,857 12,847

Other payables 13 18,678 21,242

30,535 34,089

Net current assets 56,693 18,126

Net assets 753,446 796,734

Equity

Share premium account 15 6,291 6,291

Capital reserve 15 695,822 735,860

Revenue reserve 15 51,333 54,583

Total Equity Shareholders’ Funds 753,446 796,734

Net asset value per Participating Preference Share 16 $10.09 $8.75

The Financial Statements on pages 45 to 76 were approved by the Board of Directors of the Company on 8 October 2024 and signed

on its behalf by:

Heather Manners

Chairman

Statement of Financial Position

as at 30 June 2024

The notes on pages 49 to 76 form an integral part of these ﬁnancial statements

Fidelity Emerging Markets Limited | Annual Report 2024

The notes on pages 49 to 76 form an integral part of these ﬁnancial statements

30 June

2024

$’000

30 June

2023

$’000

Operating activities

Cash inﬂow from investment income 24,168 24,214

Cash inﬂow from derivative income 9,769 6,184

Cash inﬂow from other income 20 33

Cash outﬂow from taxation paid (2,060) (1,063)

Cash outﬂow from the purchase of investments (695,450) (928,894)

Cash inﬂow from the sale of investments 854,047 930,627

Cash inﬂow/(outﬂow) from net proceeds from settlement of derivatives 23,436 (4,819)

Cash outﬂow from amounts held at futures clearing houses and brokers (26,742) (6,309)

Cash outﬂow from operating expenses (6,217) (5,150)

Net cash inﬂow from operating activities 180,971 14,823

Financing activities

Cash outﬂow from CFD interest paid (18,527) (10,111)

Cash outﬂow from short CFD dividends paid (2,726) (5,564)

Cash outﬂow from dividends paid to shareholders (17,305) (14,576)

Cash outﬂow from repurchase of participating preference shares into treasury (22,982) –

Cash outﬂow from repurchase and cancellation of Participating Preference Shares (127,125) –

Net cash outﬂow from ﬁnancing activities (188,665) (30,251)

Net decrease in cash at bank (7,694) (15,428)

Cash at bank at the start of the year 18,057 34,418

Eﬀect of foreign exchange movements (1,569) (933)

Cash at bank at the end of the year 8,794 18,057

Statement of Cash Flows

for the year ended 30 June 2024

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS FINANCIAL

1. Principal Activity

Fidelity Emerging Markets Limited (the ‘Company’) was incorporated in Guernsey on 7 June 1989 and commenced activities on

19September 1989. The Company is an Authorised Closed-Ended Investment Scheme as deﬁned by The Authorised Closed-Ended

Investment Schemes Rules and Guidance, 2021 (and, as such, is subject to ongoing supervision by the Guernsey Financial Services

Commission). The Company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

The Company’s registered oﬃce is at Level 3, Mill Court La Charroterie, St Peter Port, Guernsey GY1 1EJ, Channel Islands.

The Company’s investment objective is to achieve long-term capital growth from an actively managed portfolio made up primarily of

securities and ﬁnancial instruments providing exposure to emerging market companies, both listed and unlisted.

These ﬁnancial statements were approved by the Board of Directors and authorised for issue on 8 October 2024.

2. Summary of Material Accounting Policies

(a) Basis of preparation

The principal accounting policies applied in the preparation of these ﬁnancial statements on a going concern basis are set out below.

These policies have been consistently applied to all years presented, unless otherwise stated. The Company’s ﬁnancial statements,

which give a true and fair view of the assets, liabilities, ﬁnancial position and proﬁt and loss of the Company, have been prepared in

accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS’), which comprise standards

and interpretations approved by the International Accounting Standards Board (‘IASB’), the IFRS Interpretations Committee and

interpretations approved by the International Accounting Standards Committee (‘IASC’) that remain in eﬀect and the Companies

(Guernsey) Law, 2008. The ﬁnancial statements have been prepared under the historical cost convention, as modiﬁed by the

revaluation of ﬁnancial assets and ﬁnancial liabilities at fair value through proﬁt or loss.

Going concern

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at

least twelve months from the date of approval of these ﬁnancial statements. In making their assessment the Directors have reviewed

the income and expense projections, the liquidity of the investment portfolio, stress testing performed and considered the Company’s

ability to meet liabilities as they fall due. Accordingly, the Directors consider it appropriate to adopt the going concern basis of

accounting in preparing these ﬁnancial statements.

Signiﬁcant accounting estimates, assumptions and judgements

The preparation of ﬁnancial statements in conformity with IFRS may require management to make critical accounting judgements,

estimates and assumptions that aﬀect the application of policies and the reported amounts of assets and liabilities, income and

expense. Actual results may diﬀer from the estimates.

Valuations use observable data to the extent practicable. Changes in any assumptions could aﬀect the reported fair value of the

ﬁnancial instruments. The determination of what constitutes observable requires signiﬁcant judgement by the Company. The Company

considers observable data to be market data that is readily available, regularly distributed or updated, reliable and veriﬁable, not

proprietary, and provided by independent sources that are actively involved in the relevant market.

Adoption of new and revised International Financial Reporting Standards

The accounting policies adopted are consistent with those of the previous ﬁnancial year as amended to reﬂect the adoption of new

standards, amendments and interpretations which became eﬀective in the year as shown below.

At the date of authorisation of these ﬁnancial statements, the following revised International Accounting Standards (IAS) were in issue

but not yet eﬀective:

• Amendments to the Classiﬁcation and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7

• Lack of Exchangeability – Amendments to IAS 21

• Presentation and Disclosure in Financial Statements – IFRS 18

• Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7

• Subsidiaries without Public Accountability – IFRS 19

The adoption of these new and amended standards, together with any other IFRSs or IFRIC interpretations that are not yet eﬀective,

are not expected to have a material impact on the ﬁnancial statements of the Company other than IFRS18 (Presentation and

Disclosure in Financial Statements) that the Company is in the process of assessing.

Notes to the Financial Statements

for the year ended 30 June 2024

Fidelity Emerging Markets Limited | Annual Report 2024

2. Summary of Material Accounting Policies continued

(b) Financial Instruments

Classiﬁcation

(i) Assets

The Company classiﬁes its investments based on both the Company’s business model for managing those ﬁnancial assets and

the contractual cash ﬂow characteristics of the ﬁnancial assets. The portfolio of ﬁnancial assets is managed and performance is

evaluated on a fair value basis. The Company is primarily focused on fair value information and uses that information to assess the

assets’ performance and to make decisions. The Company has not taken the option to irrevocably designate any equity securities

as fair value through other comprehensive income. All investments are measured at fair value through proﬁt or loss. The Company’s

investments are included in the Financial assets at fair value through proﬁt and loss line in the Statement of Financial Position.

(ii) Liabilities

Derivative contracts that have a negative fair value are presented as derivative ﬁnancial liabilities at fair value through proﬁt or loss.

As such, the Company classiﬁes all of its investment portfolio as ﬁnancial assets or liabilities at fair value through proﬁt or loss. The

Company’s policy requires the Manager and the Board of Directors to evaluate the information about these ﬁnancial assets and

liabilities on a fair value basis together with other related ﬁnancial information.

Recognition/derecognition

The Company recognises a ﬁnancial asset or a ﬁnancial liability when, and only when, it becomes a party to the contractual

provisions of the instrument.

Regular-way purchases and sales of investments are recognised on their trade date, the date on which the Company commits to

purchase or sell the investment. Investments are derecognised when the rights to cash ﬂows from the investments have expired or the

Company has transferred substantially all risks and rewards of ownership. The Company derecognises a ﬁnancial liability when the

obligation under the liability is discharged, cancelled or expires.

Measurement

Financial assets at fair value through proﬁt and loss are measured initially at fair value being the transaction price. Transaction costs

incurred to acquire ﬁnancial assets at fair value through proﬁt or loss are expensed in the Statement of Comprehensive Income.

Transaction costs include fees and commissions paid to agents, advisers, brokers and dealers. Subsequent to initial recognition, all

ﬁnancial assets at fair value through proﬁt or loss are measured at fair value. Gains and losses arising from changes in the fair value

of the ‘ﬁnancial assets at fair value through proﬁt or loss’ category are presented in the Statement of Comprehensive Income in the

year in which they arise.

The Company includes transaction costs, incidental to the purchase or sale of investments within Net gains/(losses) on ﬁnancial

assets at fair value through proﬁt or loss in the capital column of the Statement of Comprehensive Income and has disclosed them in

Note10below.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market

participants at the measurement date.

Securities listed on active markets are valued based on their last bid price for valuation and ﬁnancial statement purposes.

Equity Linked Notes are valued based on the available price of the underlying asset as at reporting date.

In the normal course of business, the Company may utilise Participatory notes (‘P Notes’) to gain access to markets that otherwise

would not be allowable as a foreign investor. P Notes are issued by banks or broker-dealers and allow the Company to gain exposure

to local shares in foreign markets. They are valued based on the last price of the underlying equity at the valuation date.

The Company’s investment in other funds (‘Investee Funds’) are subject to the terms and conditions of the respective Investee Fund’s

oﬀering documentation. The investments in Investee Funds are primarily valued based on the latest available redemption price

for such units in each Investee Fund, as determined by the Investee Funds’ administrators. The Company reviews the details of the

reported information obtained for the Investee Funds and considers the liquidity of the Investee Fund or its underlying investments,

the value date of the net asset value provided, any restrictions on redemptions and the basis of the Investee Funds’ accounting. If

necessary, the Company makes adjustments to the net asset value of the Investee Funds to obtain the best estimate of fair value.

The Company may make adjustments to the value of a security if it has been materially aﬀected by events occurring before the

Company’s NAV calculation but after the close of the primary markets on which the security is traded. The Company may also make

adjustment to the value of its investments if reliable market quotations are unavailable due to infrequent trading or if trading in a

particular security was halted during the day and did not resume prior to the Company’s NAV calculation.

Notes to the Financial Statements continued

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEINFORMATION FOR SHAREHOLDERS FINANCIAL

Notes to the Financial Statements continued

2. Summary of Material Accounting Policies continued

In preparing these ﬁnancial statements the Directors have considered the impact of climate change risk as a principal and as an

emerging risk as set out on pages 22 to 24, and have concluded that there was no further impact of climate change to be taken

into account as the investments are valued based on market pricing. In line with IFRS 13 – ”Fair Value Measurement” investments

are valued at fair value, which for the Company are quoted bid prices for investments in active markets at the statement of ﬁnancial

position date. Investments which are unlisted are priced using market-based valuation approaches. All investments therefore reﬂect the

market participants view of climate change risk on the investments held by the Company.

Derivative Instruments

When appropriate, permitted transactions in derivative instruments are used. Derivative transactions into which the Company may

enter include long and short contracts for diﬀerence (“CFDs”), futures and options.

Under IFRS 9 derivatives are classiﬁed at fair value through proﬁt or loss – held for trading, and are initially accounted and measured

at fair value on the date the derivative contract is entered into and subsequently measured at fair value as follows:

• Long and short CFDs – the diﬀerence between the strike price and the value of the underlying shares in the contract;

• Futures – the diﬀerence between the contract price and the quoted trade price;

• Forward currency contracts – valued at the appropriate quoted forward foreign exchange rate ruling

at the Statement of Financial Position date;

• Exchange traded options – valued based on similar instruments or the quoted trade price for the contract; and

• Over the counter options – valued based on broker statements.

Where transactions are used to protect or enhance income, if the circumstances support this, the income and expenses derived are

included in derivative income in the revenue column of the Statement of Comprehensive Income. Where such transactions are used to

protect or enhance capital, if the circumstances support this, the income and expenses derived are included in net gains on derivative

instruments in the capital column of the Statement of Comprehensive Income. Any positions on such transactions open at the reporting

date are reﬂected on the Statement of Financial Position at their fair value within current assets or current liabilities.

Amortised cost measurement

Cash at bank, amounts held at futures clearing houses and brokers and other receivables are carried at amortised cost using the

eﬀective interest method less any allowance for impairment. Gains and losses are recognised in proﬁt or loss when the receivables

are derecognised or impaired, as well as through the amortisation process.

Capital gains tax payable and other payables are measured at amortised cost using the eﬀective interest method. Gains and losses

are recognised in proﬁt or loss when the liabilities are derecognised, as well as through the amortisation of these liabilities.

Functional and Presentation Currency

The books and records of the Company are maintained in the currency of the primary economic environment in which it operates

(itsfunctional currency). The Directors have considered the primary economic environment of the Company and considered the

currency in which the original capital was raised, past distributions have been made and ultimately the currency in which capital

would be returned on a break up basis. The Directors have also considered the currency to which underlying investments are exposed.

On balance, the Directors believe that US dollars best represent the functional currency of the Company. The ﬁnancial statements,

results and ﬁnancial position of the Company are also expressed in US dollars which is the presentation currency of the Company and

have been rounded to the nearest thousand unless otherwise stated.

Transactions and Balances

Transactions in currencies other than US dollars are recorded at the rates of exchange prevailing on the date of the transaction.

Atthe end of each reporting year, monetary items and non-monetary assets and liabilities that are fair valued and are denominated

in foreign currencies are retranslated at rates prevailing at the end of the reporting year. Gains and losses arising on translation

are included in the Statement of Comprehensive Income for the year. Foreign exchange gains and losses relating to cash and cash

equivalents are presented in the Statement of Comprehensive Income within ‘Net foreign exchange gains or losses’. Foreign exchange

gains and losses relating to ﬁnancial assets at fair value through proﬁt or loss and derivatives are presented in the Statement of

Comprehensive Income within ‘Net gains or losses on investments’ and ‘Net gains on derivative instruments’ respectively.

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

2. Summary of Material Accounting Policies continued

(d) Recognition of Dividend and Interest Income

Dividends arising on the Company’s investments are accounted for on an ex-dividend basis, gross of applicable withholding taxes.

Interest on cash at bank and collateral is accrued on a day-to-day basis using the eﬀective interest method. Dividends and interest

income are recognised in the Statement of Comprehensive Income.

(e) Income from Derivatives

Derivative instrument income received from dividends on long (or payable from short) CFDs are accounted for on the date on which

the right to receive the payment is established, normally the ex-dividend date. The amount net of tax is credited (or charged) to the

revenue column of the Statement of Comprehensive Income.

Interest received on CFDs is accounted for on an accruals basis and credited to the revenue column of the Statement of Comprehensive

Income. Interest received on CFDs represent the ﬁnance costs calculated by reference to the notional value of the CFDs.

(f) Finance Costs

Finance costs comprise bank charges and ﬁnance costs paid on CFDs, which are accounted for on an accruals basis, and dividends

paid on short CFDs, which are accounted for on the date on which the obligation to incur the cost is established, normally the

ex-dividend date. Finance costs are charged in full to the revenue column of the Statement of Comprehensive Income.

(g) Dividend Distribution

Dividend distributions are at the discretion of the Board of Directors. A dividend is recognised as a liability in the period in which it is

approved at the Annual General Meeting of the shareholders and is recognised in the Statement of Changes in Equity.

(h) Cash and Cash Equivalents

Cash comprises current deposits with banks. Cash equivalents are short-term highly liquid investments that are readily convertible to

known amounts of cash, are subject to an insigniﬁcant risk of changes in value, and are held for the purpose of meeting short-term

cash commitments rather than for investment or other purposes.

Bank overdrafts are accounted for as short term liabilities on the Statement of Financial Position and the interest expense is recorded

using the eﬀective interest rate method. Bank overdrafts are classiﬁed as other ﬁnancial liabilities.

(i) Amounts held at/due to futures clearing houses and brokers

Cash deposits are held in segregated accounts on behalf of brokers as collateral against open derivative contracts. These are carried

at amortised cost.

(j) Other receivables

Other receivables include amounts receivable on settlement of derivatives, securities sold pending settlement, accrued income,

taxation recoverable and other debtors and prepayments incurred in the ordinary course of business. If collection is expected in one

year or less they are classiﬁed as current assets. If not, they are presented as non-current assets. Other receivables are recognised

initially at fair value and, where applicable, subsequently measured at amortised cost using the eﬀective interest rate method and as

reduced by appropriate allowance for estimated irrecoverable amounts.

(k) Other payables

Other payables include amounts payable on settlement of derivatives, securities purchased pending settlement, investment

management fees, amounts payable for repurchase of shares, ﬁnance costs payable and expenses accrued in the ordinary course

of business. Other payables are classiﬁed as current liabilities if payment is due within one year or less. If not, they are presented

as non-current liabilities. Other payables are recognised initially at fair value and, where applicable, subsequently measured at

amortised cost using the eﬀective interest rate method.

(l) Segment Reporting

Operating Segments are reported in a manner consistent with the internal reporting used by the chief operating decision maker

(‘CODM’). The CODM, who is responsible for allocation of resources and assisting performance of the operating segments, has been

identiﬁed as the Directors of the Company, as the Directors are ultimately responsible for investment decisions.

The Company is engaged in a single segment business and, therefore, no segmental reporting is provided.

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS FINANCIAL

Notes to the Financial Statements continued

2. Summary of Material Accounting Policies continued

(m) Expenses

All expenses are accounted for on an accruals basis and are charged to the Statement of Comprehensive Income.

Expenses are allocated wholly to revenue with the following exceptions:

• Management fees are allocated 20% to revenue and 80% to the capital, in line with the Board’s expected long-term split of

revenue and capital return from the Company’s investment portfolio; and

• Expenses which are incidental to capital events are charged to capital.

(n) Taxation

The Company currently incurs withholding taxes imposed by certain countries on investment income and capital gains taxes

upon realisation of its investments. Such income or gains are recorded gross of withholding taxes and capital gains taxes in the

Statement of Comprehensive Income. Withholding taxes and capital gains taxes are shown as separate items in the Statement of

ComprehensiveIncome.

In accordance with IAS 12, ‘Income taxes’, the Company is required to recognise a tax liability when it is probable that the tax laws

of foreign countries require a tax liability to be assessed on the Company’s capital gains sourced from such foreign country, assuming

the relevant taxing authorities have full knowledge of all the facts and circumstances. The tax liability is then measured at the amount

expected to be paid to the relevant taxation authorities, using the tax laws and rates that have been enacted or substantively enacted

by the end of the reporting year. There is sometimes uncertainty about the way enacted tax law is applied to oﬀshore investment

funds. This creates uncertainty about whether or not a tax liability will ultimately be paid by the Company. Therefore, when measuring

any uncertain tax liabilities, management considers all of the relevant facts and circumstances available at the time that could

inﬂuence the likelihood of payment, including any formal or informal practices of the relevant tax authorities.

(o) Share Capital

Participating Preference Shares are not redeemable and there is no obligation to pay cash or another ﬁnancial asset to the holder

but are entitled to receive dividends. They are classiﬁed as equity. Incremental costs directly attributable to the issue of new shares

are shown in equity as a deduction from the proceeds net of tax.

(p) Purchase of Own Shares

The cost of purchases of the Company’s own shares is shown as a reduction in Shareholders’ Funds. The Company’s net asset value

and return per Participating Preference Share are calculated using the number of shares outstanding after adjusting for purchases.

(q) Critical Accounting Estimates and Assumptions

As stated in Note 2(a) Basis of Preparation, the preparation of ﬁnancial statements, in conformity with IFRS, requires the use of certain

critical accounting estimates. It also requires the Board of Directors to exercise its judgment in the process of applying the Company’s

accounting policies. For example, the Company may, from time to time, hold ﬁnancial instruments that are not quoted in active

markets, such as minority holdings in investment and private equity companies. Fair values of such instruments are determined using

diﬀerent valuation techniques validated and periodically reviewed by the Board of Directors.

(r) Capital reserve

The following are attributable to capital reserve:

• Gains and losses on the disposal of ﬁnancial assets at fair value through proﬁt and loss and derivatives instruments;

• Changes in the fair value of ﬁnancial assets at fair value through proﬁt and loss and derivative instruments, held at the year end;

• Foreign exchange gains and losses of a capital nature;

• 80% of management fees;

• Dividends receivable which are capital in nature;

• Taxation charged or credited relating to items which are capital in nature; and

• Other expenses which are capital in nature.

The Company holds 2,921,898 participating preference shares in treasury which have been excluded from the net asset value and

earnings per participating preference share calculations from the date of repurchase into treasury.

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

3. Income

Year ended

30 June

2024

$’000

Year ended

30 June

2023

$’000

Investment income

UK dividends 362 798

Overseas dividends 18,900 21,474

UK and overseas scrip dividends 15 –

Interest on bonds 7 –

19,284 22,272

Derivative income

Dividends earned on long CFDs 8,489 5,220

Interest earned on CFDs 2,114 1,414

Option income 9,108 11,075

19,711 17,709

Other income

Interest income from cash and collateral 1,232 587

Fee rebate 20 33

1,252 620

Total income 40,247 40,601

4. Management Fees

Year ended 30 June 2024 Year ended 30 June 2023

Revenue

$’000

Capital

$’000

Total

$’000

Revenue

$’000

Capital

$’000

Total

$’000

Management fees 935 3,741 4,676 923 3,690 4,613

Under the Investment Management Agreement (‘the IMA’), Fidelity International is entitled to receive a Management Fee of 0.60% per

annum of the Net Asset Value of the Company. Fees are payable monthly in arrears and calculated on a daily basis.

Management fees incurred by collective investment schemes or investment companies managed or advised by the Investment

Manager are reimbursed.

Please see information on ongoing charges ratio as presented on page 19.

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS FINANCIAL

Notes to the Financial Statements continued

5. Other expenses

Year ended

30 June

2024

$’000

Year ended

30 June

2023

$’000

Allocated to revenue:

Custodian fees 415 362

Directors’ fees 263 279

Directors’ expenses 24 74

Administration fees 193 192

Audit fees 106 73

Legal and professional fees 120 117

Sundry expenses 510 522

Other expenses 1,631 1,619

Administration fees

The Administrator is entitled to receive a fee, payable monthly, based on the Net Asset Value of the Company and time incurred.

Custodian fee

Under the Custodian Agreement, the Custodian to the Company is entitled to receive a fee payable monthly, based on the Net Asset

Value of the Company. All custody services are performed by JP Morgan Chase Bank.

The Company also incurs charges and expenses of other organisations with whom securities are held. The total of all Custodian fees

for the year represented approximately 0.06% (2023: 0.05%) per annum of the average Net Assets of the Company.

6. Finance costs

Year ended 30 June 2024 Year ended 30 June 2023

Revenue

$’000

Capital

$’000

Total

$’000

Revenue

$’000

Capital

$’000

Total

$’000

Dividends expenses on short CFDs 3,081 – 3,081 5,270 – 5,270

Interest expenses on CFDs 18,485 – 18,485 10,383 – 10,383

21,566 – 21,566 15,653 – 15,653

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

7. Taxation

Year ended 30 June 2024 Year ended 30 June 2023

Revenue

$’000

Capital

$’000

Total

$’000

Revenue

$’000

Capital

$’000

Total

$’000

Capital gains tax – 123 123 – (644) (644)

Withholding taxes 2,060 – 2,060 2,622 – 2,622

2,060 123 2,183 2,622 (644) 1,978

The Company is exempt from taxation in Guernsey under the provisions of the Income Tax (Exempt Bodies) (Guernsey) Ordinance,

2012. As such, the Company is only liable to pay a ﬁxed annual fee, currently £1,200 (2023: £1,200).

Income due to the Company is subject to withholding taxes. The Manager undertakes regular reviews of the tax situation of the

Company and believes that withholding taxes on dividend income and capital gains taxes on capital gains are currently the material

transactions that generate the amounts of tax payable.

In accordance with IAS 12, ‘Income taxes’, where necessary the Company provides for deferred taxes on any capital gains/losses on

the revaluation of securities in such jurisdictions where capital gains tax is levied.

The capital gains charge has been calculated on the basis of the tax laws enacted or substantially enacted at the reporting date

in the countries where the Company’s investments generate taxable income on realisation. The Manager, on behalf of the Board,

periodically evaluates which applicable tax regulations are subject to interpretation and establishes provisions when appropriate.

As at 30 June 2024, $1,038,000 capital gains tax provision was recognised in the Statement of Financial Position (2023: $915,000).

8. Earnings/(loss) per Participating Preference Share

Year ended

30 June

2024

Year ended

30 June

2023

Revenue earnings per Participating Preference Share $0.16 $0.22

Capital earnings/(loss) per Participating Preference Share $1.29 $(0.06)

Total earnings per Participating Preference Share – basic and diluted $1.45 $0.16

The earnings/(loss) per Participating Preference Share is based on the proﬁt/(loss) after taxation for the year divided by the weighted

average number of Participating Preference Shares in issue during the year, as shown below:

$’000 $’000

Revenue proﬁt after taxation for the year 14,055 19,784

Capital proﬁt/(loss) after taxation for the year 112,010 (5,235)

Total proﬁt after taxation for the year attributable to Participating Preference Shares 126,065 14,549

Number Number

Weighted average number of Participating Preference Shares in issue 86,936,701 91,100,066

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Notes to the Financial Statements continued

FINANCIAL

9. Dividends Paid to Shareholders

Year ended

30 June

2024

$’000

Year ended

30 June

2023

$’000

Dividend paid

2023 ﬁnal dividend of 19.0¢ (2022: 16.0¢) per Participating Preference Share 17,305 14,576

Total dividend paid 17,305 14,576

Dividend proposed

2024 ﬁnal dividend of 20.0¢ (2023: 19.0¢) per Participating Preference Share 14,929 17,309

Total dividend proposed 14,929 17,309

The Directors have proposed the payment of a dividend for the year ended 30 June 2024 of 20.0¢ per Participating Preference Share

which is subject to approval by shareholders at the Annual General Meeting on 10December 2024 and has not been included as a

liability in these ﬁnancial statements. The dividend will be paid on 13December 2024 to shareholders on the register at the close of

business on 15November 2024 (ex-dividend date 14November 2024).

10. Investments at Fair Value through Proﬁt or Loss

30 June

2024

$’000

30 June

2023

$’000

Financial Assets:

Equity securities 687,025 752,126

Equity linked notes 4,555 17,433

Debt instruments 316 –

Investee funds 4,857 9,049

Total Investments at fair value through proﬁt or loss 696,753 778,608

Opening book cost 884,753 907,801

Opening unrealised losses on Investments at fair value through proﬁt or loss (106,145) (180,459)

Opening fair value of Investments at fair value through proﬁt or loss 778,608 727,342

Movements in the year

Purchases at cost 692,013 932,911

Sales – proceeds (855,428) (918,198)

Gains on Investments at fair value through proﬁt or loss 81,553 36,553

Amortisation adjustment 7 –

Closing fair value 696,753 778,608

Closing book cost 695,828 884,753

Closing unrealised gains/(losses) on Investments at fair value through proﬁt or loss 925 (106,145)

Closing fair value of Investments at fair value through proﬁt or loss 696,753 778,608

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

10. Investments at Fair Value through Proﬁt or Loss continued

Gains/(losses) on Investments at fair value through proﬁt or loss

Year ended

30 June

2024

$’000

Year ended

30 June

2023

$’000

Realised gains/(losses) on Investments at fair value through proﬁt or loss

Realised gains 81,933 75,936

Realised losses (107,443) (113,697)

Net realised losses on Investments at fair value through proﬁt or loss (25,510) (37,761)

Change in unrealised gains/(losses) on Investments at fair value through proﬁt or loss

Change in unrealised gains on Investments at fair value through proﬁt or loss 39,223 20,750

Change in unrealised losses on Investments at fair value through proﬁt or loss 67,840 53,564

Net change in unrealised gains on Investments at fair value through proﬁt or loss 107,063 74,314

Net gains on Investments at fair value through proﬁt or loss 81,553 36,553

The Company received $855,428,000 (2023: $918,198,000) from ﬁnancial investments at fair value through proﬁt or loss sold in

the year. The book cost of these Investments at fair value through proﬁt or loss when they were purchased was $880,938,000

(2023:$955,959,000). These ﬁnancial investments at fair value through proﬁt or loss have been revalued over time and until they were

sold any unrealised gains/losses were included in the fair value of the ﬁnancial investments at fair value through proﬁt or loss.

Transaction costs incurred during the year in the acquisition and disposal of Investments at fair value through proﬁt or loss, which are

included in the Net gains/(losses) on ﬁnancial investments at fair value through proﬁt or loss were as follows:

Year ended

30 June

2024

$’000

Year ended

30 June

2023

$’000

Purchases transaction costs 1,012 1,403

Sales transaction costs 1,116 1,123

2,128 2,526

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Notes to the Financial Statements continued

FINANCIAL

11. Derivative Instruments

Year ended

30 June

2024

$’000

Year ended

30 June

2023

$’000

Realised gains/(losses) on derivative instruments

Gains on CFDs 177,604 163,817

Gains on future contracts 16,178 19,508

Gains on option contracts 18,681 10,947

Losses on CFDs (141,402) (187,154)

Losses on future contracts (23,062) (21,287)

Losses on option contracts (23,903) (13,600)

Net realised gains/(losses) on derivative instruments 24,096 (27,769)

Change in unrealised gains/(losses) on derivative instruments

Change in unrealised gains on CFDs 9,979 (11,177)

Change in unrealised gains on future contracts (581) 849

Change in unrealised gains on option contracts 4,746 138

Change in unrealised gains on forward currency contracts 364 –

Change in unrealised losses on CFDs 4,143 (15)

Change in unrealised losses on future contracts (1,889) 277

Change in unrealised losses on option contracts (4,968) (112)

Net change in unrealised gains/(losses) on derivative instruments 11,794 (10,040)

Net gains/(losses) on derivative instruments 35,890 (37,809)

30 June

2024

Fair value

$’000

30 June

2023

Fair value

$’000

Fair value of derivative instruments recognised on the Statement of Financial Position

Derivative instrument assets 25,399 9,468

Derivative instrument liabilities (11,857) (12,847)

13,542 (3,379)

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

11. Derivative Instruments continued

30 June 2024 30 June 2023

Fair value

$’000

Asset

exposure

$’000

Fair value

$’000

Asset

exposure

$’000

At the year end the Company held the following derivative instruments

Long CFDs 4,751 366,358 (4,598) 312,737

Short CFDs 6,830 170,814 2,057 203,746

Long future contracts (399) 22,348 – –

Short future contracts (26) 22,831 – –

Short futures (hedging exposure) (1,196) (148,757) 849 (130,176)

Long call option contracts 5,508 49,080 254 2,879

Short put option contracts 915 2,269 (1,557) 10,789

Short call option contracts (1) 37 (384) 6,406

Short call option contracts (hedging exposure) (2,418) (15,110) – –

Long put option contracts (786) 10,698 – –

Forward currency contracts 364 – – –

13,542 480,568 (3,379) 406,381

12. Other Receivables

30 June

2024

$’000

30 June

2023

$’000

CFD dividend receivable 1,661 827

Securities sold pending settlement 2,170 789

Amounts receivable on settlement of derivatives 3,054 –

Accrued income 1,182 4,834

Other receivables 16 30

8,083 6,480

13. Other Payables

30 June

2024

$’000

30 June

2023

$’000

CFD interest payable 431 473

CFD dividend payable 616 261

Securities purchased pending settlement 12,613 16,050

Amounts payable on settlement of derivatives 1,182 2,762

Management fees 335 391

Custodian fees 102 89

Directors’ fees 65 45

Repurchases of the Company’s own shares awaiting settlement 1,941 –

Capital gains tax payable 1,038 915

Accrued expenses 355 256

18,678 21,242

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Notes to the Financial Statements continued

FINANCIAL

14. Share Capital

2024

Number of

2023

Number of

Authorised

Founder shares of no par value 1,000 1,000

Issued

Participating Preference Shares held outside Treasury

Beginning of the year 91,100,066 91,100,066

Repurchase and cancellation of the Company’s own Participating Preference Shares (13,531,881)

Participating Preference Shares repurchased into Treasury (2,921,898) –

End of the year 74,646,287 91,100,066

Participating Preference Shares held in Treasury*

Beginning of the year – –

Participating Preference Shares repurchased into Treasury 2,921,898 –

End of the year 2,921,898 –

Total Participating Preference Shares including held in Treasury 77,568,185 91,100,066

* The ordinary shares held in Treasury carry no rights to vote, to receive a dividend or to participate in a winding up of the Company.

The Board of Directors is mindful that the Company’s shares have traded at a discount to NAV for some time, and frequently

deliberates appropriate discount control mechanisms to address the imbalance between the demand and supply of the Company’s

shares. In recognition of this, on 13 November 2023, the Company implemented a share buyback programme to repurchase up

to 14.99% of issued share capital, which was renewed at the Annual General Meeting on 7 December 2023. The Board intends to

continue using its buyback programme to address the discount to NAV with the ambition that it may ultimately be maintained in single

digits in normal market conditions on a sustainable basis.

The costs associated with the repurchase and cancellation of shares as well as repurchase of shares held in treasury of $127,125,000

and $24,923,000 respectively were charged to the capital reserve for the year ended 30 June 2024.

The Company may issue an unlimited number of Unclassiﬁed Shares of no par value.

Founder Shares

All of the Founder Shares were issued on 6 June 1989 to GIML or its nominees. The Founder Shares were issued at $1 each par

value. The Founder Shares are not redeemable. At the Extraordinary General Meeting of the Company on 30 October 2009 and

in accordance with The Companies (Guernsey) Law, 2008 it was approved that each Founder Share be redesignated as no par

valueshares.

The Founder Shares confer no rights upon holders other than at general meetings, on a poll, every holder is entitled to one vote in

respect of each Founder Share held.

On 7 October 2021, all of the Founder shares were transferred from Genesis Investment Management LLP to FIL Investment Services

(UK) Limited.

Treasury Shares

As at year ending 30 June 2024, the Company holds 2,921,898 shares in treasury (2023: nil).

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

14. Share Capital continued

Participating Preference Shares

At the Extraordinary General Meeting of the Company held on 30 October 2009 it was approved that each Participating Preference

Share be divided into ten Participating Preference Shares. Under The Companies (Guernsey) Law, 2008 (as amended), the nominal

values of the shares were also converted into sterling and redesignated as no par value shares.

The holders of Participating Preference Shares rank ahead of holders of any other class of share in issue in a winding up. They have

the right to receive any surplus assets available for distribution. The Participating Preference Shares confer the right to dividends

declared, and at general meetings, on a poll, confer the right to one vote in respect of each Participating Preference Share held.

Participating Preference Shares are classed as equity as they have a residual interest in the assets of the Company.

All of the above classes of shares are considered as Equity under the deﬁnitions set out in IAS 32, ‘Financial instruments: Disclosure

and presentation’, because the shares are not redeemable and there is no obligation to pay cash or another ﬁnancial asset to

theholder.

15. Capital and Reserves

premium

account

$’000

Capital

reserve

$’000

Revenue

reserve

$’000

Total

equity

$’000

At 1 July 2023 6,291 735,860 54,583 796,734

Net gains on investments at fair value through proﬁt or

loss (see Note 10) – 81,553 – 81,553

Net gains on derivative instruments (see Note 11) – 35,890 – 35,890

Net foreign exchange losses – (1,569) – (1,569)

Management fees (see Note 4) – (3,741) – (3,741)

Tax charged to capital (see Note 7) – (123) – (123)

Repurchase and cancellation of the Company’s own

shares (see Note 14) – (127,125) – (127,125)

Participating Preference Shares repurchased into Treasury

(see Note 14) – (24,923) – (24,923)

Revenue proﬁt after taxation for the year – – 14,055 14,055

Dividends paid to shareholders (see Note 9) – – (17,305) (17,305)

At 30 June 2024 6,291 695,822 51,333 753,446

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Notes to the Financial Statements continued

FINANCIAL

15. Capital and Reserves continued

premium

account

$’000

Capital

reserve

$’000

Revenue

reserve

$’000

Total

equity

$’000

At 1 July 2022 6,291 741,095 49,375 796,761

Net gains on investments at fair value through proﬁt or

loss (see Note 10) – 36,553 – 36,553

Net losses on derivative instruments (see Note 11) – (37,809) – (37,809)

Net foreign exchange losses – (933) – (933)

Management fees (see Note 4) – (3,690) – (3,690)

Tax charged to capital (see Note 7) – 644 – 644

Revenue proﬁt after taxation for the year – – 19,784 19,784

Dividends paid to shareholders (see Note 9) – – (14,576) (14,576)

At 30 June 2023 6,291 735,860 54,583 796,734

Share Premium

Share Premium is the amount by which the value of shares subscribed for exceeded their nominal value at the date of issue.

The capital reserve balance at 30 June 2024 includes investment holding gains of $925,000 (2023: losses of $106,145,000) as detailed

in Note 10.

16. Net Asset Value per Participating Preference Share

The calculation of the net asset value per Participating Preference Share is based on the following:

30 June

2024

30 June

2023

Net assets $753,446,000 $796,734,000

Participating Preference Shares in issue 74,646,287 91,100,066

Net Asset Value per Participating Preference Share $10.09 $8.75

17. Financial Instruments

Management of risk

The Company’s investing activities in pursuit of its investment objective involve certain inherent risks. The Board conﬁrms that there

is an ongoing process for identifying, evaluating and managing the risks faced by the Company. The Board with the assistance

of the Investment Manager, has developed a risk matrix which, as part of the internal control process, identiﬁes the risks that the

Company faces. Principal risks identiﬁed are investment performance, cybercrime and information security, business continuity &

event management, gearing, discount to NAV, unlisted securities, foreign currency exposure, lack of market liquidity, environmental,

social and governance (ESG) and key person risks. Other risks identiﬁed are tax and regulatory and operational risks, including those

relating to third party service providers covering investment management, marketing and business development, company secretarial,

fund administration and operations and support functions. Risks are identiﬁed and graded in this process, together with steps taken in

mitigation, and are updated and reviewed on an ongoing basis. Risks identiﬁed are shown in the Strategic Report.

This note is incorporated in accordance with IFRS 7: Financial Instruments: Disclosures and refers to the identiﬁcation, measurement

and management of risks potentially aﬀecting the value of ﬁnancial instruments.

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

17. Financial Instruments continued

The Company’s ﬁnancial instruments may comprise:

• Equity shares (listed and unlisted), preference shares, equity linked notes, convertible bonds, rights issues, holdings in investment

companies and private placements;

• Derivative instruments including CFDs, warrants, futures and options written or purchased on stocks and equity indices and forward

currency contracts; and

• Cash, liquid resources and short-term receivables and payables that arise from its operations.

The risks identiﬁed by IFRS 7 arising from the Company’s ﬁnancial instruments are market price risk (which comprises interest rate risk,

foreign currency risk and other price risk), liquidity risk, credit and counterparty risk and derivative instrument risk. The Board reviews

and agrees policies for managing each of these risks, which are summarised below.

Interest rate risk

The Company has the ability to borrow up to 10% of the Company’s NAV in order to increase the amount of capital available for

investment. The Company aims to keep its use of an overdraft facility for trading purposes to a minimum only using a facility to enable

settlements. It may also hold interest bearing securities and cash.

The Company ﬁnances its operations through its share capital and reserves. In addition, the Company has gearing through the use of

derivative instruments. The Board imposes limits to ensure gearing levels are appropriate. The Company is exposed to a ﬁnancial risk

arising as a result of any increases in interest rates associated with the funding of the derivative instruments.

Interest rate risk exposure

The values of the Company’s ﬁnancial instruments that are exposed to movements in interest rates are shown below:

30 June

2024

$’000

30 June

2023

$’000

Exposure to ﬁnancial instruments that bear interest

Long CFDs – exposure less fair value 361,607 317,335

361,607 317,335

Exposure to ﬁnancial instruments that earn interest

Short CFDs – exposure plus fair value 177,644 205,804

Debt Instrument 316 –

Amounts held at futures clearing houses and brokers 44,952 18,210

Cash and cash equivalents 8,794 18,057

231,706 242,071

Net exposure to ﬁnancial instruments that bear interest (129,901) (75,264)

Interest rate risk sensitivity analysis

Based on the ﬁnancial instruments held and interest rates at the statement of ﬁnancial position date, an increase of 1% in interest

rates throughout the year, with all other variables held constant, would have decreased the proﬁt after taxation for the year and

decreased the net assets of the Company by $1,299,000 (2023: increased the loss after taxation for the year and decreased the

net assets of the Company by $753,000). A decrease of 1% in interest rates throughout the year would have had an equal but

oppositeeﬀect.

Foreign currency risk

The Company invests in ﬁnancial instruments and enters into transactions denominated in currencies other than its functional currency.

Consequently, the Company is exposed to risks that the exchange rate of its functional currency relative to other foreign currencies

may change in a manner that has an adverse eﬀect on the value of that portion of the Company’s assets or liabilities denominated

in currencies other than US dollars (functional currency) or UK Sterling (the currency in which shares are traded on the London

StockExchange).

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Notes to the Financial Statements continued

FINANCIAL

17. Financial Instruments continued

Three principal areas have been identiﬁed where foreign currency risk could impact the Company:

• movements in currency exchange rates aﬀecting the value of investments and derivatives exposures;

• movements in currency exchange rates aﬀecting short-term timing diﬀerences, for example, between the date when an investment

is bought or sold and the date when settlement of the transaction occurs; and

• movements in currency exchange rates aﬀecting income received.

Currency exposure of ﬁnancial assets

The Company’s ﬁnancial assets comprise of investments, positions on derivative instruments, short-term debtors and cash and

cashequivalents.

Currency exposure of ﬁnancial liabilities

The Company ﬁnances its investment activities through its ordinary share capital and reserves. The Company’s ﬁnancial liabilities

comprise positions on derivative instruments and other payables.

The net currency exposure proﬁle of these ﬁnancial assets/(liabilities) is shown below:

Currency

Investments

held at

fair value

through

proﬁt or loss

$’000

Asset/

(liabilities)

exposure of

derivative

instruments

$’000

Cash, cash

equivalents

and other

receivables/

(payables)

$’000

2024

Total foreign

currency risk

$’000

Australian dollar 3,594 (4,012) (35) (453)

Brazilian real 44,315 – (275) 44,040

Canadian dollar 25,805 9,545 (17) 35,333

Euro 16,125 21,793 (28) 37,890

Hong Kong dollar 40,623 108,530 (1,395) 147,758

Hungarian Forint 10,536 – – 10,536

Indian rupee 77,447 (17,942) 25,903 85,408

Indonesian rupiah 28,009 – – 28,009

Japanese Yen – (25,855) (97) (25,952)

Korean won 20,102 (7,027) 1,325 14,400

Mexican peso 33,824 23,248 (49) 57,023

Other currencies 38,148 (374) (36) 37,738

Poland złoty 13,899 (16,346) (351) (2,798)

Saudi riyal 36,888 – 385 37,273

South African Rand 85,394 2,518 (9) 87,903

Sterling 4,465 16,082 (985) 19,562

Swedish Krona – 8,450 (12) 8,438

Taiwan dollar 115,039 – 395 115,434

United Arab Emirates Dirham 16,671 – – 16,671

United States dollar 65,389 (29,581) 18,432 54,240

Vietnamese dong 20,480 – – 20,480

696,753 89,029 43,151 828,933

1 The asset exposure of long and short derivative positions is after the netting of hedging exposures;

2 Other receivables/(payables) include amounts held at futures clearing houses and brokers.

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

17. Financial Instruments continued

Currency

Investments

held at

fair value

through

proﬁt or loss

$’000

Asset/

(liabilities)

exposure of

derivative

instruments

$’000

Cash, cash

equivalents

and other

receivables/

(payables)

$’000

2023

Total foreign

currency risk

$’000

Brazilian real 70,992 263 (74) 71,181

Canadian dollar 23,451 19,717 15 43,183

Chinese yuan renminbi 6,364 – 30 6,394

Euro 35,411 3,570 5 38,986

Hong Kong dollar 77,538 53,348 1,265 132,151

Indian rupee 93,561 – 136 93,697

Indonesian rupiah 36,602 – – 36,602

Korean won 9,563 (604) 36 8,995

Mexican peso 34,214 18,890 (65) 53,039

Nigerian naira 9,356 – 1,319 10,675

Poland zloty 12,087 (7,503) 21 4,605

South African rand 80,608 (4,512) (237) 75,859

UK Sterling 20,784 9,044 (27) 29,801

Swedish Krona 10,837 – – 10,837

Taiwan dollar 107,225 – 1,835 109,060

United Arab Emirates dirham 4,124 – – 4,124

United States dollar 92,384 (90,177) 17,175 19,382

Vietnamese dong 15,131 – 68 15,199

Other currencies 38,376 (15,959) 3 22,420

778,608 (13,923) 21,505 786,190

1 The asset exposure of long and short derivative positions is after the netting of hedging exposures;

2 Other receivables/(payables) include amounts held at futures clearing houses and brokers.

Foreign currency risk management

The degree of sensitivity of the Company’s assets to foreign currency risk depends on the net exposure of the Company to each

speciﬁc currency and the volatility of that speciﬁc currency in the year. At 30 June 2024, had the average exchange rate of the US

dollar weakened by a reasonable possible movement of 5% (2023: 5%) in relation to the basket of currencies in which the Company’s

net assets are denominated, weighted by the Company’s exposure to each currency with all other variables held constant, the

Company estimates the proﬁt after taxation for the year would have increased and net assets would have increased by $38,735,000

(2023: increased the proﬁt after taxation for the year and increased the net assets of the Company by $38,340,000).

An increase in the US dollar by 5% in relation to the basket of currencies in which the Company’s net assets are denominated would

have resulted in a decline in net assets by the same amount, under the assumption that all other factors remain constant.

The Investment Manager does not consider it realistic or useful to examine foreign currency risk in isolation. The Investment Manager

considers the standard deviation of the NAV (which is struck in US dollars) as the appropriate risk measurement for the portfolio as a

whole as it reﬂects market price risk generally. Please see Market Price Risk section.

Market price risk

Market price risk is the risk that value of the instrument will experience unanticipated ﬂuctuations as a result of changes in market

prices (other than those arising from foreign currency risk and interest rate risk), whether caused by factors speciﬁc to an individual

investment, its issuer, or all factors inﬂuencing all instruments traded in the market.

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Notes to the Financial Statements continued

FINANCIAL

17. Financial Instruments continued

Market price risk management

Market price risk can be moderated in a number of ways by the Investment Manager through:

(i) a disciplined stock selection and investment process; and

(ii) limitation of exposure to a single investment through diversiﬁcation and through amongst others, the implementation of

investmentrestrictions.

The Board reviews the prices of the portfolio’s holdings and investment performance at their meetings. Country and Sector Exposure of

the Portfolio and Forty Largest Holdings illustrate the Company’s portfolio at the end of reporting year reﬂects the diversiﬁedstrategy

The Investment Manager has identiﬁed the MSCI Emerging Markets Index as a relevant reference point for the markets in which

it operates. However, the Investment Manager does not manage the Company’s investment strategy to track the MSCI Emerging

Markets Index or any other index or benchmark. The short-term performance of the Company and its correlation to the MSCI Emerging

Markets Index is shown in the Financial Highlights section and is expected to change over time.

Market price risk – Investee Funds

The Company’s investments in Investee Funds are subject to the terms and conditions of the respective Investee Fund’s oﬀering

documentation and are susceptible to market price risk arising from uncertainties about future values of those Investee Funds. The

Investment Manager makes investment decisions after extensive due diligence of the underlying fund, its strategy and the overall

quality of the underlying fund’s manager. All of the Investee Funds in the investment portfolio are managed by portfolio managers

who are compensated by the respective Investee Funds for their services. Such compensation generally consists of an asset based fee

and a performance based incentive fee and is reﬂected in the valuation of the Company’s investment in each of the Investee Funds.

The exposure to investments in Investee Funds at fair value is disclosed as part of Note below. These investments are included in

‘Financial assets at fair value through proﬁt or loss’ in the Statement of Financial Position. The Company’s maximum exposure to loss

from its interests in Investee Funds is equal to the total fair value of its investments in Investee Funds.

There were no purchases of Investee Funds during the year ended 30 June 2024 (2023: $3,846,000). Total sales amounted to

$1,310,000 (2023: $4,045,000). As at 30 June 2024 and 2023 there were no capital commitment obligations and no amounts due to

Investee Funds for unsettled purchases.

Other price risk

Other price risk arises mainly from uncertainty about future prices of ﬁnancial instruments. It represents the potential loss the Company

might suﬀer through price movements in its investment positions. The Board meets quarterly to consider the asset allocation of the

portfolio and the risk associated with particular industry sectors within the parameters of the investment objective.

The Investment Manager is responsible for actively monitoring the portfolio selected in accordance with the overall asset allocation

parameters and seeks to ensure that individual stocks also meet an acceptable risk/reward proﬁle. Other price risks arising from

derivative positions, mainly due to the underlying exposures, are assessed by the Investment Manager’s specialist derivative

instruments team.

Other price risk sensitivity

The following table illustrates the sensitivity of loss after taxation for the year and net assets to an increase or decrease of 10% (year

ended 30 June 2023: 10%) in the fair value of investments. This level of change is considered to be a reasonable illustration based on

observation of current market conditions. The sensitivity analysis is based on investments with all other variables held constant.

The other price sensitivity analysis is based on the valuation of investments directly held by the Company. For underlying investment

funds this is based on the net assets of such underlying funds as included in the Company’s portfolio of investments at reporting date.

The value of certain investments, in particular positions held in underlying funds may vary due to currency, interest rate and credit risks

and such risks are not directly considered in the other price risk sensitivity analysis.

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

17. Financial Instruments continued

Eﬀect of a 10% increase/(decrease) in fair value:

2024 2023

10% increase

in fair value

$’000

10% decrease

in fair value

$’000

10% increase

in fair value

$’000

10% decrease

in fair value

$’000

Statement of Comprehensive Income – proﬁt/(loss)

after taxation

Total proﬁt/(loss) after taxation for the year 69,644 (69,644) 77,861 (77,861)

Net assets 69,644 (69,644) 77,861 (77,861)

Liquidity risk

Liquidity risk is the risk that the Company will encounter diﬃculties in meeting obligations associated with ﬁnancial liabilities. The

Company’s assets mainly comprise readily realisable securities and derivative instruments which can be sold easily to meet funding

commitments if necessary. Short-term ﬂexibility is achieved by the use of a bank overdraft, if required.

The liquidity risk proﬁle of the Company was as follows:

30 June

2024

$’000

30 June

2023

$’000

Amounts due within one month

Securities purchased pending settlement 12,613 16,050

Repurchases of the Company’s own shares awaiting settlement 1,941 –

Amounts payable on settlement of derivatives 1,182 2,762

Derivative liabilities 8,377 12,847

CFD interest payable 431 473

CFD dividend payable 616 261

Custodian fees 102 89

Management fees 335 391

Directors’ fees 65 45

Accrued expenses 355 256

Amounts due within one year

Derivative liabilities 3,480 –

Capital gains tax payable 1,038 915

Total liabilities 30,535 34,089

Liquidity risk management

The restrictions on concentration and the diversiﬁcation requirements detailed above (see market price risk) also serve normally

to protect the overall value of the Company from the risks created by the lower level of liquidity in the markets in which the

Companyoperates.

The Company has no payables past their due dates as at 30 June 2024 (2023: nil).

Credit and counterparty risk

Credit risk is the risk that a counterparty to a ﬁnancial instrument will fail to discharge an obligation or commitment it has entered

into with the Company. Financial instruments may be adversely aﬀected if any of the institutions with which money is deposited suﬀer

insolvency or other ﬁnancial diﬃculties. All transactions are carried out with brokers that have been approved by the Investment Manager

and are settled on a delivery versus payment basis. Limits are set on the amount that may be due from any one broker and are kept

under review by the Investment Manager. Exposure to credit risk arises on outstanding security transactions and derivative instrument

contracts and cash at bank. The Company only engages with approved counterparties that are rated investment grade orabove.

The Company has no receivables past their due dates as at 30 June 2024 (2023: nil).

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Notes to the Financial Statements continued

FINANCIAL

17. Financial Instruments continued

Credit risk management

Certain derivative instruments in which the Company may invest are not traded on an exchange but instead will be traded between

counterparties based on contractual relationships, under the terms outlined in the International Swaps and Derivatives Association’s

(“ISDA”) market standard derivative legal documentation. These are known as Over The Counter (“OTC”) trades. As a result, the

Company is subject to the risk that a counterparty may not perform its obligations under the related contract. In accordance with

the risk management process which the Investment Manager employs, this risk is minimised by only entering into transactions with

counterparties which are believed to have an adequate credit rating at the time the transaction is entered into, by ensuring that formal

legal agreements covering the terms of the contract are entered into in advance, and through adopting a counterparty risk framework

which measures, monitors and manages counterparty risk by the use of internal and external credit agency ratings and evaluates

derivative instrument credit risk exposure.

The maximum exposure to credit risk at 30 June is the carrying amount of the ﬁnancial assets as set out below.

30 June

2024

Amounts due

within 1 year

$’000

30 June

2023

Amounts due

within 1 year

$’000

Derivative assets 25,399 9,468

Debt instruments 316 –

Securities sold pending settlement 2,170 789

Amounts receivable on settlement of derivatives 3,054 –

Amounts held at futures clearing houses and brokers 44,952 18,210

Cash and cash equivalents 8,794 18,057

CFD dividend receivable 1,661 827

Accrued income 1,182 4,834

Other receivables 16 30

87,544 52,215

None of these assets are impaired nor past due but not impaired.

For OTC and exchange traded derivative transactions, collateral is used to reduce the risk of both parties to the contract. Collateral is

managed on a daily basis for all relevant transactions and held in segregated collateral accounts. Collateral can be held by brokers

on behalf of the Company to reduce the credit risk exposure of the Company or held by the Company on behalf of brokers to reduce

the credit risk exposure of the brokers. All collateral received or pledged at reporting date is in form of cash. The value of collateral

received from brokers and pledged to brokers is shown below:

30 June 2024 30 June 2023

collateral

received

$’000

collateral

pledged

$’000

collateral

received

$’000

collateral

pledged

$’000

Bank of America Merrill Lynch International – – – 250

Goldman Sachs International Ltd 6,440 – – 3,430

J.P. Morgan Securities plc 5,290 – 1,180 –

Morgan Stanley & Co. International Ltd – 530 110 –

HSBC Bank plc 790 – – 1,800

UBS AG 2,300 44,422 – 12,730

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

17. Financial Instruments continued

Derivative instrument risk

The risks and risk management processes which result from the use of derivative instruments, are set out in the Risk Management

Process document. This document was approved by the Board and allows the use of derivative instruments for the following purposes:

• to gain exposure to equity markets, sectors or individual investments;

• to hedge equity market risk in the Company’s investments with the intention of mitigating losses in the events market falls;

• to enhance portfolio returns by writing call and put options; and

• to take short positions in equity markets, sectors or individual investments which would beneﬁt from a fall in the relevant market

price, where the Investment Manager believes the investment is overvalued. These positions distinguish themselves from other

short exposures held for hedging purposes since they are expected to add risk to the portfolio.

The risk and investment performance of these instruments are managed by an experienced, specialist derivative team of the

Investment Manager using portfolio risk assessment tools for portfolio construction.

Derivative instruments exposure sensitivity analysis

The Company invests in derivative instruments to gain or reduce exposure to the equity market. An increase of 10% in the share prices

of the investments underlying the derivative instruments at the reporting date would have increased the proﬁt after taxation for the

year and increased the net assets of the Company by $8,903,000 (2023: increased the proﬁt after taxation for the year and increased

the net assets of the Company by $1,392,000). A decrease of 10% in share prices of the investments underlying the derivative

instruments would have had an equal but opposite eﬀect.

Oﬀsetting

To mitigate counterparty risk for OTC derivative transactions, the ISDA legal documentation is in the form of a master agreement

between the Company and the brokers. This allows enforceable netting arrangements in the event of a default or termination event.

Derivative instrument assets and liabilities that are subject to netting arrangements have not been oﬀset in preparing the Statement of

Financial Position.

The Company’s derivative instrument ﬁnancial assets and liabilities recognised in the Statement of Financial Position and amounts that

could be subject to netting in the event of a default or termination are shown below:

Financial assets

Gross

amount

$’000

Gross amount

of recognised

ﬁnancial

liabilities

set oﬀ on

the statement

of ﬁnancial

position

$’000

Net amount

of ﬁnancial

assets

presented on

the statement

of ﬁnancial

position

$’000

Related amounts not set

oﬀ on statement of

ﬁnancial position 2024

Financial

instruments

$’000

Margin

account

received as

collateral

$’000

Net

amount

$’000

CFDs 18,344 – 18,344 (6,763) (9,169) 2,412

Options 6,423 – 6,423 (1,209) – 5,214

Futures 268 – 268 (268) – –

Forward currency

contracts 11,801 (11,437) 364 – – 364

36,836 (11,437) 25,399 (8,240) (9,169) 7,990

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS

Notes to the Financial Statements continued

FINANCIAL

17. Financial Instruments continued

Financial liabilities

Gross

amount

$’000

Gross amount

of recognised

ﬁnancial

assets

set oﬀ on

the statement

of ﬁnancial

position

$’000

Net amount

of ﬁnancial

liabilities

presented on

the statement

of ﬁnancial

position

$’000

Related amounts not set

oﬀ on statement of

ﬁnancial position 2024

Financial

instruments

$’000

Margin

account

pledged as

collateral

$’000

Net

amount

$’000

CFDs (6,763) – (6,763) 6,763 – –

Options (3,205) – (3,205) 1,209 – (1,996)

Futures (1,889) – (1,889) 268 1,621 –

Forward currency

contracts (11,437) 11,437 – – – –

(23,294) 11,437 (11,857) 8,240 1,621 (1,996)

Financial assets

Gross

amount

$’000

Gross amount

of recognised

ﬁnancial

liabilities

set oﬀ on

the statement

of ﬁnancial

position

$’000

Net amount

of ﬁnancial

assets

presented on

the statement

of ﬁnancial

position

$’000

Related amounts not set

oﬀ on statement of

ﬁnancial position 2023

Financial

instruments

$’000

Margin

account

received as

collateral

$’000

Net

amount

$’000

CFDs 8,365 – 8,365 (6,055) (1,290) 1,020

Options 254 – 254 (254) – –

Futures 849 – 849 – – 849

9,468 – 9,468 (6,309) (1,290) 1,869

Financial liabilities

Gross

amount

$’000

Gross amount

of recognised

ﬁnancial

assets

set oﬀ on

the statement

of ﬁnancial

position

$’000

Net amount

of ﬁnancial

liabilities

presented on

the statement

of ﬁnancial

position

$’000

Related amounts not set

oﬀ on statement of

ﬁnancial position 2023

Financial

instruments

$’000

Margin

account

pledged as

collateral

$’000

Net

amount

$’000

CFDs (10,906) – (10,906) 6,055 4,235 (616)

Options (1,941) – (1,941) 254 1,687 –

(12,847) – (12,847) 6,309 5,922 (616)

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

17. Financial Instruments continued

Fair Value Hierarchy

The Company is required to disclose the fair value hierarchy that classiﬁes its ﬁnancial instruments measured at fair value at one of

three levels, according to the relative reliability of the inputs used to estimate the fair values.

Classiﬁcation Input

Level 1 Valued using quoted prices in active markets for identical assets

Level 2 Valued by reference to inputs other than quoted prices included in level 1 that are observable (i.e.

developed using market data) for the asset or liability, either directly or indirectly

Level 3 Valued by reference to valuation techniques using inputs that are not based on observable market data

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 asset. The valuation techniques used by the Company are explained in Note 2(b). The table below sets

out the Company’s fair value hierarchy

Financial assets at fair value through proﬁt or loss

Level 1

$’000

Level 2

$’000

Level 3

$’000

30 June

2024

Total

$’000

Investments in equity securities 686,519 – 506 687,025

Equity linked notes – 4,555 – 4,555

Debt instruments – 316 – 316

Investee funds – – 4,857 4,857

Derivative instrument assets – futures contracts 268 – – 268

Derivative instrument assets – options 6,412 11 – 6,423

Derivative instrument assets – CFDs – 18,344 – 18,344

Derivative instrument assets – forward currency contracts – 364 – 364

693,199 23,590 5,363 722,152

Financial liabilities at fair value through proﬁt or loss

Derivative instrument liabilities – futures contracts 1,889 – – 1,889

Derivative instrument liabilities – options 1,198 2,007 – 3,205

Derivative instrument liabilities – CFDs – 6,763 – 6,763

3,087 8,770 – 11,857

Annual Report 2024 | Fidelity Emerging Markets Limited

Notes to the Financial Statements continued

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS FINANCIAL

17. Financial Instruments continued

Financial instruments classiﬁed under Level 2 are valued by reference to inputs other than quoted prices included in level 1 that are

observable (i.e. developed using market data) for the asset or liability, either directly or indirectly. The Level 2 instruments include

underlying investment funds, equity linked notes, over the counter option contracts and contracts for diﬀerence.

Financial assets at fair value through proﬁt or loss

Level 1

$’000

Level 2

$’000

Level 3

$’000

30 June

2023

Total

$’000

Investments in equity securities 751,117 – 1,009 752,126

Equity linked notes – 17,433 – 17,433

Investee funds – 3,943 5,106 9,049

Derivative instrument assets – futures contracts 849 – – 849

Derivative instrument assets – options 13 241 – 254

Derivative instrument assets – CFDs – 8,365 – 8,365

751,979 29,982 6,115 788,076

Financial liabilities at fair value through proﬁt or loss

Derivative instrument liabilities – options 1,516 425 – 1,941

Derivative instrument liabilities – CFDs – 10,906 – 10,906

1,516 11,331 – 12,847

Valuation basis for Level 3 investments

30 June

2024

$’000

30 June

2023

$’000

Net asset value 4,857 5,106

Most recently available published price adjusted 506 1,009

5,363 6,115

As the key input into the valuation of Level 3 investments is oﬃcial valuation statements from the investee funds and the adjusted most

recently available published price, we do not consider it appropriate to put forward a sensitivity analysis on the basis that insuﬃcient

value is likely to be derived by the end users.

The following table summarises the change in value associated with Level 3 ﬁnancial instruments carried at fair value during the year:

Movements in level 3 investments during the year

30 June

2024

Level 3

$’000

30 June

2023

Level 3

$’000

Opening balance 6,115 5,809

Sales (8,384) (4,045)

Transfers into level 3 – 1,009

Realised (losses)/gains (19,431) 3,112

Net change in unrealised gains/(losses) 27,063 230

Closing balance 5,363 6,115

During the year the Company participated in a tender oﬀer which was being undertaken in Detsky Mir’s restructuring from being a

public listed company to a private company. The Company’s application was successful and it received proceeds of RUB 300.5 million,

(approx. $3.1 million based on exchange rates at that time).

During the year, the Company sold its position in TCS Group Holding Plc by means of a secondary market transaction. The Manager

granted the attestations required to ensure the proceeds from the sale were available to the Company and it received proceeds of $4

million.

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

17. Financial Instruments continued

The Company’s holdings in Russian securities have been fair valued at nil as at 30 June 2024 (2023 : nil) as a result of trading

being suspended on international stock exchanges. These Russian securities have a carrying cost of $90,932,976 as at 30June 2024

(2023:$99,959,944).

The Company’s policy is to recognise transfers in and transfers out at the end of each accounting year.

Capital Risk Management

The capital of the Company is represented by the equity attributable to holders of Participating Preference Shares. The amount of

equity attributable to holders of Participating Preference Shares is subject to change, at most, twice monthly as the Company is a

closed-ended fund with the ability to issue additional shares only if certain conditions are met as set out in the Company’s scheme

particulars. The Company’s objective when managing capital is to safeguard the Company’s ability to continue as a going concern in

order to provide returns for shareholders and to maintain a strong capital base to support the development of the investment activities

of the Company.

18. Capital Resources and Gearing

The Company does not have any externally imposed capital requirements. The ﬁnancial resources of the Company comprise its share

capital, reserves and gearing, which are disclosed on the Statement of Financial Position. The Company is managed in accordance

with its investment policy and in pursuit of its investment objective, both of which are detailed in the Strategic Report. The principal

risks and their management are disclosed in the Strategic Report and in Note 17.

The Company’s gearing at the year end is set out below:

30 June 2024

Gross gearing Net gearing

Exposure

$’000 %

Exposure

$’000 %

Investments 696,753 92.5 696,753 92.5

Long CFDs 366,358 48.6 366,358 48.6

Long futures 22,348 3.0 22,348 3.0

Long put options 10,698 1.4 10,698 1.4

Long call options 49,080 6.5 49,080 6.5

Total long exposures before hedges 1,145,237 152.0 1,145,237 152.0

Less: short derivative instruments hedging the above (148,757) (19.7) (148,757) (19.7)

Less: short call covered options for hedging purposes (15,110) (2.0) (15,110) (2.0)

Total long exposures after the netting of hedges 981,370 130.3 981,370 130.3

Short CFDs 170,814 22.7 (170,814) (22.7)

Short futures 22,831 3.0 (22,831) (3.0)

Short put options 2,269 0.3 (2,269) (0.3)

Short call options 37 – (37) –

Gross Asset Exposure/net exposure 1,177,321 156.3 785,419 104.3

Net Assets 753,446 753,446

Gearing

56.3% 4.3%

Annual Report 2024 | Fidelity Emerging Markets Limited

Notes to the Financial Statements continued

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS FINANCIAL

18. Capital Resources and Gearing continued

30 June 2023

Gross gearing Net gearing

Exposure

$’000 %

Exposure

$’000 %

Investments 778,608 97.7 778,608 97.7

Long CFDs 312,737 39.2 312,737 39.2

Short put options 10,789 1.4 10,789 1.4

Long call options 2,879 0.4 2,879 0.4

Total long exposures before hedges 1,105,013 138.7 1,105,013 138.7

Less: short derivative instruments hedging the above (130,176) (16.3) (130,176) (16.3)

Total long exposures after the netting of hedges 974,837 122.4 974,837 122.4

Short CFDs 203,746 25.5 (203,746) (25.5)

Short call options 6,406 0.8 (6,406) (0.8)

Gross Asset Exposure/net exposure 1,184,989 148.7 764,685 96.1

Net Assets 796,734 796,734

Gearing

48.7% (3.90)%

1 Exposure to the market expressed as a percentage of Net Assets.

2 Gearing is the amount by which Gross Asset Exposure/net exposure exceeds Net Assets expressed as a percentage of Net Assets.

19. Transactions with the Managers and Related Parties

FIL Investment Services (UK) Limited is the Company’s Alternative Investment Fund Manager and has delegated portfolio management

to FIL Investments International. Both companies are Fidelity group companies.

Details of the current fee arrangements are given in Note 4. During the year, management fees of $4,676,000 (2023:$4,613,000) were

payable to the Manager. During the year, marketing fees of $269,000 (2023: $176,000) were payable to the Manager. At the year-end

date the Company had a balance of management fees outstanding, full details are disclosed in Note 13. Additionally, the Company

had a balance of marketing fees outstanding of $57,000 (2023: $39,000). This balance forms part of the other payables ﬁgure in

Note13.

At the date of this report, the Board consisted of ﬁve non-executive Directors (as shown on pages 28 and 29) all of whom are

considered to be independent by the Board. None of the Directors has a service contract with the Company

The Directors received for the ﬁnancial year fees totalling £205,829, (2023: £156,604), the breakdown of the fees is shown in the

Directors’ Remuneration Report on page36. From 1 July 2024, the Chairman receives an annual fee of £52,000 (2023: £50,000), the

Chairman of the Audit Committee and Senior Independent Director receive £39,500 (2023: £38,000) and the other Directors receive an

annual fee of £37,500 (2023: £36,000). The following members of the Board hold Participating Preference Shares in the Company at

the date of this report: Heather Manners 10,000 shares, Torsten Koster 15,000 shares, Dr Simon Colson 4,416 shares, Katherine Tsang

nil shares and Mark Little* nil shares.

Directors’ expenses for the year include travelling, hotel and other expenses which the Directors are entitled to when properly incurred

by them in travelling to, attending and returning from meetings and while on other business of the Company.

Directors’ related party interests are stated on page 36 as part of the Directors’ Remuneration Report.

*Appointed 17 January 2024

Fidelity Emerging Markets Limited | Annual Report 2024

Notes to the Financial Statements continued

20. Ultimate Controlling Party

In the opinion of the Directors on the basis of the shareholdings advised to them, the Company has no immediate or ultimate

controlling party.

21. Segment Information

The Directors, after having considered the way in which internal reporting is provided to them, are of the opinion that the Company

continues to be engaged in a single segment of business, being the provision of a diversiﬁed portfolio of investments in emerging

markets.

All of the Company’s activities are interrelated, and each activity is dependant on the others. Accordingly, all signiﬁcant operating

decisions are based upon analysis of the Company operating in one segment.

The ﬁnancial positions and results from this segment are equivalent to those per the ﬁnancial statements of the Company as a whole,

as internal reports are prepared on a consistent basis in accordance with the measurement and recognition principles of IFRS.

A breakdown of the Company’s ﬁnancial assets at fair value through proﬁt and loss is shown in the Country exposure of the

Company’s portfolio on pages 16 to 18.

The Company is domiciled in Guernsey. All of the Company’s income from investment is from entities in countries or jurisdictions other

than Guernsey.

22. Subsequent events

No signiﬁcant events have occurred since the end of the reporting date which would impact on the ﬁnancial position of the Company

disclosed in the Statement of Financial Position as at 30 June 2024 or on the ﬁnancial performance and cash ﬂows of the Company

for the year ended on that date.

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS FINANCIAL

Active Share

Active Share is a measure of the percentage which stock holdings in the Company diﬀer from the constituents of the benchmark, the

MSCI Emerging Markets Index. Active share is calculated by taking the sum of the absolute diﬀerence between the weights of the

holdings in the Company and those in the MSCI Emerging Markets Index and dividing the result by two. See The Year at a Glance

inside the front cover of this report for further details.

Discount/Premium

The discount/premium is considered to be an Alternative Performance Measure. It is the diﬀerence between the NAV of the

Company and the share price and is expressed as a percentage of the NAV. Details of the Company’s discount are on the Financial

Highlightspage.

Gearing

Gearing is considered to be an Alternative Performance Measure. See Note 18 on page 74 for details of the Company’sgearing.

Net Asset Value (“NAV”) per Participating Preference Share

The NAV per Participating Preference Share is considered to be an Alternative Performance Measure. See the Statement of Financial

Position on page 47 and Note 16 on page 63 for further details.

Ongoing charges ratio

Ongoing charges ratio is considered to be an Alternative Performance Measure. The ongoing charges ratio has been calculated in

accordance with guidance issued by the AIC as the total of management fees and other expenses expressed as a percentage of the

average net assets throughout the year.

30 June

2024

30 June

2023

Management fees ($’000) 4,676 4,613

Other expenses ($’000)

1,631 1,619

Ongoing charges ($’000) 6,307 6,232

Average net assets ($’000) 782,365 768,785

Ongoing charges ratio 0.81% 0.81%

Alternative Performance Measures

Fidelity Emerging Markets Limited | Annual Report 2024

Alternative Performance Measures continued

Total Return Performance

Total return performance is considered to be an Alternative Performance Measure (as deﬁned in the Glossary to the Annual Report on

pages 86 to 88). NAV per share total return includes reinvestment of the dividend in the NAV of the Company on the ex-dividend date.

Share price total return includes the reinvestment of the net dividend in the month that the share price goes ex-dividend.

The tables below provide information relating to the NAV per share and share prices of the Company, the impact of the dividend

reinvestments and the total returns for the years ended 30 June 2024 and 30 June 2023.

2024

Net asset

value per

price

30 June 2023 687.91p 587.50p

30 June 2024 798.47p 703.00p

Change in the year +16.1% +19.7%

Impact of dividend reinvestment +2.6% +2.9%

Total return for the year +18.7% +22.6%

2023

Net asset

value per

price

30 June 2022 720.13p 633.70p

30 June 2023 687.91p 587.50p

Change in the year -4.5% -7.3%

Impact of dividend reinvestment +1.9% +2.1%

Total return for the year -2.6% -5.2%

Annual Report 2024 | Fidelity Emerging Markets Limited

Securities Financing Transactions Regulation

(“SFTR”)

Securities Financing Transactions (Unaudited)

The Company engages in Securities Financing Transactions (SFT) (as deﬁned in Article 3 of Regulation (EU) 2015/2365, securities

ﬁnancing transactions include repurchase transactions, securities or commodities lending and securities or commodities borrowing,

buysell back transactions or sell-buy back transactions and margin lending transactions). In accordance with Article 13 of the Regulation,

the Company’s involvement in and exposures related to SFT for the accounting year ended 30 June 2024 are detailed below.

Global Data

Amount of securities on loan

During the year ended 30 June 2024, the Company was not engaged in securities lending. The total value of securities on loan as a

proportion of the Company’s total lendable assets, as at the statement of ﬁnancial position date, is nil.

Amount of assets engaged in CFDs

The following disclosures relate to CFDs held by the Company which may be considered Total Return Swaps under the SFTR.

As at 30 June 2024, all CFDs were contracted bilaterally with open maturities:

Broker

Fair Value

$’000

Percentage of

Net Assets

Collateral held

by the broker

$’000

Collateral held

by the Company

$’000

Goldman Sachs International (UK) 1,420 0.19% 6,440 –

HSBC Bank plc (UK) 1,154 0.15% 790 –

J.P. Morgan Securities plc (UK) 6,768 0.90% 5,290 –

Morgan Stanley & Co International (UK) 570 0.08% – 530

UBS AG (UK) 1,669 0.22% 2,300 –

Collateral held by the broker was denominated in US dollars and held in a segregated account on behalf of the Company with a

maturity of one day.

Settlement and clearing

OTC derivative transactions are entered into by the Fund under an International Swaps and Derivatives Associations, Inc. Master

Agreement (“ISDA Master Agreement”) or similar agreement. An ISDA Master Agreement is a bilateral agreement between the

Company and a counterparty that governs OTC derivative transactions (including CFDs) entered into by the parties. All OTC derivative

transactions entered under an ISDA Master agreement are netted together for collateral purposes.

Share of collateral received that is reused and reinvestment return

Collateral received for CFD positions is kept in segregated accounts with the brokers and is not reinvested by the Company. There are

no returns from reinvestment of collateral received.

Return and cost

All returns from CFDs are earned by the Company. Information about returns and costs related to CFDs is disclosed in Note 3 Income,

Note 6 Finance Costs and Note 11 Derivative Instruments.

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS FINANCIAL

Fidelity Emerging Markets Limited | Annual Report 2024

Notice of Annual General Meeting

NOTICE is hereby given that the thirty-fourth Annual General Meeting of Fidelity Emerging Markets Limited (the “Company”)

will be held at the registered oﬃce of the Company, Level 3, Mill Court La Charroterie, St Peter Port, Guernsey GY1 1EJ, on

Tuesday, 10December 2024 at 11 a.m. to consider and if thought ﬁt, to pass the following resolutions which will be proposed

as ordinary resolutions and special resolutions as set out below:

ORDINARY RESOLUTIONS

To be proposed as ordinary resolutions:

1. To receive the Report of the Directors and audited Financial

Statements for the year ended 30 June 2024.

2. To approve the Directors’ Remuneration Report for the year

ended 30 June 2024.

3. To re-appoint KPMG Channel Islands Limited as Independent

Auditor to the Company.

4. To authorise the Directors to agree the remuneration of the

Independent Auditor.

5. To declare a ﬁnal dividend of $0.20 per share designated

as a Participating Redeemable Preference Share (the

“Participating Preference Shares”) to be paid in respect of

the ﬁnancial year ended 30 June 2024.

6. To re-elect Ms Heather Manners as a Director of the Company.

7. To re-elect Dr Simon Colson as a Director of the Company.

8. To re-elect Mr Torsten Koster as a Director of the Company.

9. To elect Mr Mark Little as a Director of the Company.

10. To re-elect Ms Katherine Tsang as a Director of the Company.

11. THAT the Directors be generally and unconditionally authorised

to allot and issue, grant rights to subscribe for, or to convert

securities into, up to 23,958,326 Participating Preference Shares

(being 33.33 per cent. of the Company’s shares of each

class in issue as at the latest practicable date prior to the

date of publication of this document (excluding shares held

in treasury)) for the period expiring on the date falling ﬁfteen

months after the date of passing of this Resolution 13 or the

conclusion of the next annual general meeting of the Company,

whichever is the earlier, save that the Company may before

such expiry make an oﬀer or agreement which would or might

require shares to be allotted and issued after such expiry and

the Directors may allot and issue shares in pursuance of such

an oﬀer or agreement as if the authority had not expired.

SPECIAL RESOLUTIONS

To be proposed as special resolutions:

12. THAT, In substitution for the Company’s existing authority to

make market purchases of Participating Preference Shares,

the Company is authorised to make market purchases of

Participating Preference Shares, PROVIDED THAT:

(a) the maximum number of Participating Preference Shares

that may be purchased shall be 10,755,137 being 14.99%

of the issued number of Participating Preference Shares

at the date of this document or, if lower, such number as

is equal to 14.99% of the issued number of Participating

Preference Shares at the date of passing the resolution;

(b) the maximum price which may be paid for a Participating

Preference Share is an amount equal to 105% of

the average of the middle market quotations for a

Participating Preference Share taken from the London

Stock Exchange Daily Oﬃcial List for the ﬁve business

days immediately preceding the day on which the

Participating Preference Share is purchased;

conclusion of the last Annual General Meeting of the

Company unless such authority is renewed prior to such

time; and

(d) the Company may make a contract to purchase

Participating Preference Shares under the authority

hereby conferred prior to the expiry of such authority

which will or may be executed wholly or partly after the

expiration of such authority and may make a purchase

of Participating Preference Shares pursuant to any

suchcontract.

13. THAT, in accordance with Article 9(4) of the articles of

incorporation of the Company (the “Articles”), the Directors

be empowered to allot and issue (or sell from treasury)

7,188,217Participating Preference Shares (being 10 per

cent. of the such Shares in issue of each class as at the latest

practicable date prior to the date of this notice (excluding

shares held in treasury)) for cash as if Article 9.4 of the Articles

did not apply to the allotment and issue (or sale from treasury)

for the period expiring on the date falling ﬁfteen months after

the date of passing of this Resolution 13 or the conclusion of

the next annual general meeting of the Company, whichever

is the earlier, save that the Company may before such expiry

make oﬀers or agreements which would or might require

shares to be allotted and issued (or sold) after such expiry and

the Directors may allot and issue (or sell) shares in pursuance

of any such oﬀer or agreement notwithstanding that the power

conferred by this Resolution 13 has expired.

Annual Report 2024 | Fidelity Emerging Markets Limited

Notes to the Notice of Meeting

1. A member of the Company who is entitled to attend the AGM

is entitled to appoint one or more proxies to attend speak

and vote in his or her place. A proxy does not need to be

a member of the Company but must attend the meeting to

represent you. Details of how to appoint the Chairman of

the meeting or another person as your proxy using the proxy

form are set out in the notes to the proxy form. If you wish

your proxy to speak on your behalf at the meeting you will

need to appoint your own choice of proxy (not the Chairman)

and give your instructions directly to them. A member may

appoint more than one proxy to attend the meeting provided

that each proxy is appointed to exercise rights attached to

diﬀerent shares.

2. To allow eﬀective constitution of the AGM, if it is apparent

to the Chairman that no members of the Company will be

present in person or by proxy, other than by proxy in the

Chairman’s favour, the Chairman may appoint a substitute to

act as proxy in his stead for any member, provided that such

substitute proxy shall vote on the same basis as the Chairman.

3. A form of proxy is enclosed which should be completed in

accordance with the instructions. To be valid, the form of

proxy (together with the power of attorney or other authority

(if any) under which it is signed or a notarially certiﬁed copy

of such authority) must be deposited with the Company’s

Registrar Computershare Investor Services (Guernsey) Limited,

c/o the Pavilions, Bridgwater Road, Bristol BS99 6ZY by not

less than 48 hours before the time for holding the meeting

or any adjournment thereof at which the person named in

the instrument proposes to vote. Completion of the form

of proxy will not preclude a member from attending and

voting in person, your proxy appointment will automatically

beterminated.

4. To change your proxy instructions simply submit a new proxy

form using the methods set out above and in the notes to the

proxy form. Note that the cut-oﬀ date and time for receipt of

a proxy form (see above) also apply in relation to amended

instructions; any amended proxy form received after the

relevant cut-oﬀ date and time will be disregarded. If you submit

more than one valid proxy form, the form received last before

the latest time for the receipt of proxies will take precedence.

5. In order to revoke a proxy instruction you will need to inform

the Company by sending a signed hard copy notice clearly

stating your intention to revoke your proxy appointment to the

Company’s Registrar. In the case of a member which is an

individual the revocation notice must be under the hand of

the appointer or of his attorney duly authorised in writing or

in the case of a member which is a company, the revocation

notice must be executed under its common seal or under

the hand of an oﬃcer of the company or an attorney duly

authorised. Any power of attorney or any other authority

under which the revocation notice is signed (or a notarially

certiﬁed copy of such power or authority) must be included

with the revocation notice.

6. The revocation notice must be received by 8:30 a.m. on

6 December 2024. If you attempt to revoke your proxy

appointment but the revocation is received after the time

speciﬁed then, subject to the paragraph directly below, your

proxy appointment will remain valid.

7. The Company gives notice that those Shareholders entered

on the register of members of the Company at 8:30 a.m.

on 6 December 2024 (or their duly appointed proxies) will

be entitled to attend and vote at the aforesaid meeting in

respect of the number of shares registered in their name at

that time. Changes to the entries on the register after that

time will be disregarded in determining the rights of any

person to attend or vote at the AGM.

Notice of Annual General Meeting continued

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS FINANCIAL

Fidelity Emerging Markets Limited | Annual Report 2024

Administration

Registered Oﬃce

Level 3, Mill Court La Charroterie

St Peter Port

Guernsey GY1 1EJ

Website

www.ﬁdelity.co.uk/emergingmarkets

Alternative Investment Fund Manager

(from 4 October 2021)

FIL Investment Services (UK) Limited

Beech Gate

Millﬁeld Lane

Lower Kingswood

Tadworth

Surrey KT20 6RP

Investment Manager and Company Secretary

FIL Investments International

Beech Gate

Millﬁeld Lane

Lower Kingswood

Tadworth

Surrey KT20 6RP

Custodian

JP Morgan Chase Bank

25 Bank Street

Canary Wharf

London E14 5JP

United Kingdom

(Authorised and regulated by the United Kingdom’s

Financial Conduct Authority)

Administrator

J.P. Morgan Administration Services (Guernsey) Limited

Level 3, Mill Court La Charroterie

St Peter Port

Guernsey GY1 1EJ

(Authorised and regulated by the Guernsey Financial

Service Commission)

Registrar

Computershare Investor Services

(Guernsey) Limited

C/o 13 Castle Street

St. Helier

Jersey JE1 1ES

Channel Islands

Telephone: +44 (0) 370 707 4040

www.investorcentre.co.uk/je

Stockbrokers

JP Morgan Cazenove

25 Bank Street

Canary Wharf

London E14 5JP

United Kingdom

Jeﬀeries International Limited

100 Bishopsgate

London EC2N 4JL

United Kingdom

Independent Auditor

KPMG Channel Islands Limited

Glategny Court

Glategny Esplanade

St. Peter Port

Guernsey GY1 1WR

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS FINANCIAL

General Data Protection Regulation (“GDPR”)

What personal data is collected and how it is used

The Company is an investment trust which is a public limited company and has certain regulatory obligations such as the

requirement to send documents to its shareholders, for example, the Annual Report and other documents that relate to meetings

of the Company. The Company will therefore collect shareholders’ personal data such as names, addresses and identiﬁcation

numbers or investor codes and will use this personal data to fulﬁl its statutory obligations.

Any personal data collected will be kept securely on computer systems and in some circumstances on paper. Personal

information is kept secure in line with Fidelity’s Information Security policies and standards. If you are unhappy with how we have

used your personal data, you can complain by contacting the UK Data Protection Oﬃcer at Fidelity International, Beech Gate,

Millﬁeld Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.

Sharing personal data

In order to assist the Company in meeting its statutory requirements, the Company delegates certain duties around the processing

of this data to its third party service providers, such as the Company’s Registrar and Printers. The Company has appointed Fidelity

to undertake marketing activities for the Company and their privacy statement can be found on the Company’s website at

https://investment-trusts.ﬁdelity.co.uk/privacy-policy/

The Company’s agreements with the third party service providers have been updated to be compliant with GDPR requirements.

The Company conﬁrms to its shareholders that their data will not be shared with any third party for any other purpose, such as for

marketing purposes. In some circumstances, it may be necessary to transfer shareholders’ personal data across national borders

to Fidelity Group entities operating in the European Economic Area (“EEA”). Where this does occur, the European standard of

protections will be applied to the personal data that is processed. Where personal data is transferred within the Fidelity Group,

but outside of the EEA, that data will subsequently receive the same degree of protection as it would in the EEA.

Retention Period

We will keep the personal data for as long as is necessary for these purposes and no longer than we are legally permitted to

doso.

Requesting access, making changes to your personal data and other important information

Shareholders can access the information that the Company holds about them or ask for it to be corrected or deleted by

contacting Fidelity’s UK Data Protection Oﬃcer, Fidelity International, Beech Gate, Millﬁeld Lane, Lower Kingswood, Tadworth,

Surrey KT20 6RP.

Fair treatment of investors

The legal and regulatory regime to which the Company and the Directors are subject ensures the fair treatment of investors. The

Listing Rules require that the Company treats all Shareholders of the same class of shares equally. In particular, the Directors have

certain statutory duties under the Companies (Guernsey) Law, 2008 with which they must comply. These include a duty upon each

Director to act in the way she or he considers, in good faith, would be most likely to promote the success of the Company for the

beneﬁt of its members as a whole.

Fidelity Emerging Markets Limited | Annual Report 2024

In compliance with the Alternative Investment Fund Managers’ Directive (“AIFMD”), the Board has appointed FIL Investment Services (UK)

Limited (“FISL”) as the Company’s Alternative Investment Fund Manager (“AIFM”). FISL has delegated the investment management to

FILInvestments International (“FII”) and the company secretarial function.

Details of the current Management Agreement can be found in the Strategic Report on pages 20 to 27.

The table below discloses information required by the Alternative Investment Fund Managers’ Regulations 2013.

Function AIFM Role and Responsibility AIFMD Disclosure

Investment management The AIFM provides portfolio management of assets

and investment advice in relation to the assets

of the Company. It has delegated this function to

FILInvestments International (“FII”).

The Board remains responsible for setting the

investment strategy, investment policy and

investment guidelines and the AIFM operates within

these guidelines.

Details of the Company’s investment objective,

strategy and investment policy, including limits,

areon pages 20 and 21.

Risk management The AIFM has a responsibility for risk management

for the Company which is in addition to the Board’s

corporate governance responsibility for risk

management.

The Company has a Risk Management Process

Document which is agreed with the Board and

demonstrates that risk management is separated

functionally and hierarchically from operating units

and demonstrates independence safeguards. The

Manager maintains adequate risk management

systems in order to identify, measure and monitor

allrisks at least annually under AIFMD. The

Manager is responsible for the implementation

of various risk activities such as risk systems,

riskproﬁle, risk limits and testing.

The Board, as part of UK corporate governance,

remains responsible for the identiﬁcation of

signiﬁcant risks and for the ongoing review of

the Company’s risk management and internal

controlprocesses.

The AIFM has an ongoing process for identifying,

evaluating and managing the principal risks faced

by the Company and this is regularly reviewed

by the Board. The Board remains responsible for

the Company’s system of risk management and

internal controls and for reviewing its eﬀectiveness.

Further details can be found in the Strategic

Report on pages 20 to 27 and in Note 17 to

the Financial Statements on pages 63 to 74.

Valuation of illiquid

assets

AIFMD requires the disclosure of the percentage

of the Alternative Investment Fund’s assets which

are subject to special arrangements arising from

their illiquid nature and any new arrangements for

managing the liquidity of the Company.

As at the date of this report, none of the Company’s

assets is subject to special arrangements arising

from its illiquid nature.

Alternative Investment Fund Manager’s Disclosure

(unaudited)

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERS FINANCIAL

Function AIFM Role and Responsibility AIFMD Disclosure

Leverage The Company may be geared through (i) borrowing

of up to 10% of its net asset value and/or (ii)

by entering into derivative positions (both long

and short) which have the eﬀect of gearing the

Company’s portfolio, to enhance performance.

The AIFM has set maximum levels of leverage that

are reasonable. It has implemented systems to

calculate and monitor compliance against these

limits and has ensured that the limits have been

complied with at all times.

There are two methods of calculating leverage –

theGross Method which does not reduce exposure

for hedging; and the Commitment Method which

does reduce exposure for hedging.

The maximum leverage limits are 2.50 for the Gross

Method of calculating leverage and 2.00 for the

Commitment Method.

At 30 June 2024, actual leverage was 2.04 for the

Gross Method and 1.87 for the Commitment Method.

Liquidity management The AIFM, in consultation with the Board, maintains

a liquidity management policy which is considered

at least annually.

The Company’s assets mainly comprise readily

realisable securities and derivative instruments

which can be sold easily to meet funding

commitments if necessary.

Further details can be found in Note 17 on page66.

Remuneration of the

AIFM

The AIFM operates under the terms of Fidelity’s

Global Remuneration Policy Statement. This ensures

that the AIFM complies with the requirements of

the FCA’s Remuneration Code (SYSC19A); the AIFM

Remuneration Code (SYSC19B) and the BIPRU

Remuneration Code (SYSC19C).

Details of Fidelity International’s Global

Remuneration Policy can be found at

www.ﬁdelityinternational.com/global/

remuneration/default.page

Alternative Investment Fund Manager’s Disclosure

(unaudited) continued

Fidelity Emerging Markets Limited | Annual Report 2024

Glossary to the Annual Report

ACTIVE SHARE

Active Share is a measure of the percentage by which stock

holdings in the Company diﬀer from the constituents of the

benchmark, the MSCI Emerging Markets Index. Active share is

calculated by taking the sum of the absolute diﬀerence between

the weights of the holdings in the Company and those in the

MSCI Emerging Markets Index and dividing the result by two.

ADR (AMERICAN DEPOSITARY RECEIPT)

A negotiable certiﬁcate issued by a US bank representing a

speciﬁed number of shares in a foreign stock that is traded on

aUS Exchange.

AIC

The Association of Investment Companies (“AIC”). The Company

is a member of the AIC.

AIF

Alternative Investment Fund (“AIF”). The Company is an AIF.

AIFM

Alternative Investment Fund Manager (“AIFM”). The Board has

appointed FIL Investment Services (UK) Limited to act as the

Company’s AIFM.

AIFMD

The Alternative Investment Fund Managers Directive (“AIFMD”)

isa European Union Directive implemented on 22 July 2014.

ALTERNATIVE PERFORMANCE MEASURES

The Company uses the following Alternative Performance

Measures which are all deﬁned in this Glossary:

• Active Share

• Discount/Premium;

• Gearing (Gross and Net);

• Net Asset Value (NAV) per Participating Preference Share;

• Ongoing Charges ratio;

• Total Return Performance (Net Asset Value Total Return or

Share Price Total Return)

ASSET EXPOSURE

The value of an underlying security or instrument to which

the Company is exposed, whether through direct or indirect

investment (including the economic value of the exposure in the

underlying asset of derivative).

AUDITOR

KPMG Channel Islands Limited, or such other auditor, as the

Company may appoint from time to time.

BENCHMARK INDEX (THE INDEX)

The Company’s benchmark index, the MSCI Emerging

MarketsIndex.

COLLATERAL

Assets provided as security.

CONTRACT FOR DIFFERENCE (CFD)

A contract for diﬀerence is a derivative. It is a contract between

the Company and an investment bank at the end of which the

parties exchange the diﬀerence between the opening price and

the closing price of the underlying asset of the speciﬁed ﬁnancial

instrument. It does not involve the Company buying or selling the

underlying asset, only agreeing to receive or pay the movement

in its share price. A contract for diﬀerence allows the Company

to gain access to the movement in the share price by depositing

a small amount of cash known as margin. The Company may

reason that the asset price will rise, by buying (“long” position)

or fall, by selling (“short” position). If the Company holds long

positions, dividends are received and interest is paid. If the

Company holds short positions, dividends are paid and interest

is received.

CUSTODIAN

An entity that holds (as intermediary) the Company’s assets,

arranges the settlement of transactions and administers income,

proxy voting and corporate actions. The Company’s Custodian

isJPMorgan Chase Bank.

DERIVATIVES

Financial instruments whose value is derived from the value of

an underlying asset or other ﬁnancial instruments. The main

categories of derivatives are contracts for diﬀerence, warrants,

futures and options.

DISCOUNT

If the share price of the Company is lower than the Net Asset

Value per Participating Preference Share, the Company’s shares

are said to be trading at a discount. It is shown as a percentage

of the Net Asset Value per Participating Preference Share.

EARNINGS

The earnings generated in a given period from investments:

• Revenue Earnings – reﬂects the dividends and interest from

investments and other income, net of expenses, ﬁnance costs

and taxation;

• Capital Earnings – reﬂects the return on capital, excluding

any revenue earnings; and

• Total Earnings – reﬂects the aggregate of revenue and

capital earnings.

Annual Report 2024 | Fidelity Emerging Markets Limited

STRATEGYGOVERNANCEFINANCIALINFORMATION FOR SHAREHOLDERSINFORMATION FOR SHAREHOLDERS

EQUITY LINKED NOTES (ELNS)

Debt instruments whose return on investment is linked to speciﬁc

equities or equity markets. The return on equity linked notes may

be determined by an equity index, a basket of equities, or a

single equity.

EQUITY SHAREHOLDERS’ FUNDS

Also described as Net Asset Value, Shareholders’ Funds represent

the total value of the Company’s assets less the total value of its

liabilities as shown in the Statement of Financial Position.

FAIR VALUE

The fair value is the best estimate of the value of the investments,

including derivatives, at a point in time and this is measured as:

• Listed investments – valued at bid prices or last market

prices, where available, otherwise at published price

quotations;

• Unlisted investments – valued using an appropriate valuation

technique in the absence of an active market;

• Contracts for diﬀerence – valued as the diﬀerence between

the settlement price of the contract and the value of the

underlying shares in the contract (unrealised gains or losses);

• Futures and options – valued at the quoted trade price for the

contract; and

• Forward currency contracts – valued at the appropriate

quoted forward foreign exchange rate ruling at the Statement

of Financial Position date.

FIDELITY

FIL Investments International.

FIL LIMITED

The ultimate parent company of the FIL Group of companies.

Incorporated in Bermuda.

FIL

FIL Limited and each of its subsidiaries.

FORWARD CURRENCY CONTRACT

Agreement to buy or sell a currency at a speciﬁed future date

and at a pre-agreed price.

FUTURE OR FUTURE CONTRACT

An agreement to buy or sell a stated amount of a security,

currency or commodity at a speciﬁc future date and at a

preagreed price.

GROSS ASSET EXPOSURE

The value of the portfolio to which the Company is exposed,

whether through direct or indirect investment (including the

economic value of the exposure in the underlying asset of the

derivatives, but excluding forward currency contracts).

GEARING

The economic exposure of the portfolio to its underlying assets in

excess of total net assets. It represents the additional exposure to

the market above Equity Shareholders’ Funds. The Company uses

two measures of gearing:

• Gross gearing which is the amount by which Gross Asset

Exposure exceeds Equity Shareholders’ Funds expressed as

apercentage of Equity Shareholders’ Funds.

• Net gearing which is the amount by which Net Asset

Exposure exceeds Equity Shareholders’ Funds expressed as

apercentage of Equity Shareholders’ Funds.

HEDGES

Short positions that demonstrate risk-reduction qualities by

oﬀsetting long positions held by the Company which have

regional congruence and a correlation of at least 80% to the

Long Exposure of the Company.

INVESTMENT MANAGER

FIL Investments International

LONG EXPOSURE

The value of the Company’s direct and indirect investments in

long positions (including the economic value of the exposure to

the reference asset of any derivative instrument).

MANAGER

FIL Investment Services (UK) Limited is the appointed Manager

under the Alternative Investment Fund Managers’ Directive

(“AIFMD”) and has delegated the investment management of the

Company to the Investment Manager.

MSCI EMERGING MARKETS INDEX

The Benchmark Index of the investment performance of the

Company, in UK sterling terms.

NET ASSET VALUE PER PARTICIPATING PREFERENCE SHARE

TOTAL RETURN

NAV per Participating Preference Share Total Return is a measure

showing how the NAV per Participating Preference Share has

performed over a period of time, taking into account dividends

paid to shareholders. Total Return measures allow shareholders

to compare performance between investment funds where the

dividend paid may diﬀer. To calculate Total Return, it is assumed

that dividends are reinvested into the assets of the Company at

the prevailing NAV on the last day of the month that the shares

ﬁrst trade ex-dividend.

NET ASSET VALUE PER PARTICIPATING PREFERENCE SHARE

Net Assets are the value of the Company’s assets less its

liabilities. Net Asset Value (‘NAV’) per Participating Preference

Share is the Net Assets divided by the number of Participating

Preference Shares in issue.

NET ASSETS

The value of the Company’s assets minus its liabilities.

Glossary to the Annual Report continued

NET MARKET EXPOSURE

Net positive market exposure of the Company’s portfolio, whether

through direct or indirect investment, with short and hedge

positions subtracted from long positions. It is calculated as

(LongExposure – Hedges) – Short Exposure.

ONGOING CHARGES RATIO

The ongoing charges ratio is a measure used to estimate the

expenses likely to occur in the foreseeable future. It is calculated

by dividing the annualised ongoing charges (total operating

expenses excluding transaction costs and one-oﬀ charges) by the

average month end net asset values of the Company for the year

under review and has been prepared in accordance with the

AIC’s recommended methodology.

OPTIONS

An option is a contract which gives the right but not the

obligation to buy or sell an underlying asset at an agreed price

on or before an agreed date. Options may be call or put and

are used to gain or reduce exposure to the underlying asset on

aconditional basis.

PORTFOLIO

The Company’s portfolio which may be made up of equities,

index linked securities, equity linked notes and other debt

securities, cash deposits, money market instruments, foreign

currency exchange transactions and other interests including

derivatives (such as futures, options and contracts for diﬀerence).

PREMIUM

If the share price of the Company is higher than the net asset

value per ordinary share, the Company’s shares are said to be

trading at a premium. The premium is shown as a percentage of

the net asset value per ordinary share.

REGISTRAR

The entity that manages the Company’s shareholder register.

The Company’s Registrar is Computershare Investor Services

(Guernsey) Limited.

RESERVES

• Share premium account represents the amount by which the

proceeds from the issue of ordinary shares has exceeded the

cost of those ordinary shares. It is not distributable by way of

dividend and cannot be used to fund share repurchases.

• Capital reserve represents realised gains or losses on

investments and derivatives sold, unrealised increases and

decreases in the fair value of investments and derivatives

held and other income and costs recognised in the capital

column of the Statement of Comprehensive Income. It can be

used to fund share repurchases and it is distributable by way

of dividend.

• Revenue reserve represents retained revenue surpluses

recognised through the revenue column of the Statement of

Comprehensive Income. It is distributable by way of dividend.

SECRETARY

FIL Investments International.

SHARE PRICE TOTAL RETURN

Share Price Total Return is a measure showing how the Share

Price has performed over a period of time, taking into account

dividends paid to shareholders. Total Return measures allow

shareholders to compare performance between investment funds

where the dividend paid may diﬀer. To calculate Total Return,

itis assumed that dividends are reinvested into the shares of

the Company at the prevailing Share Price on the last day of the

month that the shares ﬁrst trade ex-dividend.

SHARE PRICE

The Share Price taken is the closing price. This is the price

at which the Company’s shares trade on the London Stock

Exchange at the end of trading on a business day.

SHORT EXPOSURE

The position of the Company when it has sold a security or

derivative that it does not own but is now committed to eventually

purchase in order to satisfy its obligation to sell. It is a strategy

used to capitalise on an expected decline in the security’s or

derivative’s price.

SIZE OF COMPANY (MARKET CAP)

• Large – above $50bn;

• Medium – between $10bn – $50bn;

• Small – below $10bn

TOTAL ASSETS

Net Assets plus borrowings. The Company does not have any

borrowings.

UNLISTED COMPANIES

Companies not listed on a regulated stock exchange. Theyare

stated at best estimate of fair value, based on recognised

valuation techniques which may take account of recent arm’s

length transactions in the investments.

Fidelity Emerging Markets Limited | Annual Report 2024

To ﬁnd out more about Fidelity Emerging Markets Limited, visit our website at www.ﬁdelity.co.uk/emergingmarkets where you can

read articles and watch videos on the Company.

Fidelity, Fidelity International, the Fidelity International logo and symbol are trademarks of FIL Limited

Printed on FSC® certiﬁed paper.

100% of the inks used are vegetable oil based 95% of press chemicals are recycled for further

use and on average 99% of any waste associated with this production will be recycled.

The FSC® logo identiﬁes products which contain wood from well-managed forests

certiﬁed in accordance with the rules of the Forest Stewardship Council®.

This document is printed on Cocoon Silk; a paper made using 50% recycled

ﬁbre from genuine waste paper and 50% virgin ﬁbre.

The unavoidable carbon emissions generated during the manufacture and delivery of

this document, have been reduced to net zero through a veriﬁed, carbon oﬀsetting project.