Barings
Emerging EMEA Opportunities PLC
Half
Year Report
for
the six-months ended 31 March
2023
The
Directors present the Half-Yearly Financial Report of the Company
for the period to 31 March
2023.
Company
Summary
Barings
Emerging EMEA Opportunities PLC (the “Company”) was incorporated on
11 October 2002 as a public limited
company and is an investment company in accordance with the
provisions of Section 833 of the Companies Act 2006 (the “Act”). It
is a member of the Association of Investment
Companies
(the “AIC”). The ticker is BEMO.
As an
investment trust, the Company has appointed an Alternative
Investment Fund Manager, Baring Fund Managers Limited (the “AIFM”),
to manage its investments.
The AIFM
is authorised and regulated by the Financial Conduct Authority (the
“FCA”). The AIFM has delegated responsibility of the investment
management for the portfolio to Baring Asset Management Limited
(the “Investment Manager” or “Manager”). Further information on the
Investment Manager, their investment philosophy and management of
the Investment Portfolio can be found below.
Management
Fee
The AIFM
receives an investment management fee of 0.75% of the Net Asset
Value (“NAV”) of the Company. This is paid monthly in arrears based
on the level of net assets at the end of the month.
Investment
Objective and Policy
The
Company’s investment objective is to achieve capital growth,
principally through investment in emerging and frontier equity
securities listed or traded on Eastern European, Middle Eastern and
African (“EMEA”) securities markets.
The
Company intends predominantly to invest in emerging and frontier
equity listed or traded on EMEA securities markets or in securities
in which the majority of underlying assets, revenues and/or profits
are, or are expected to be, derived from activities in
EMEA.
Further
details of the investment objective and policy can be found
below.
Benchmark
The
Company’s comparator benchmark is the MSCI Emerging Markets EMEA
Index (net dividends reinvested) (the “Benchmark”).
This
Benchmark is considered to be most representative of the Company’s
investment mandate, which covers Emerging Europe, the Middle East and Africa. The Investment Manager is not limited
or constrained by the constituents of the comparator benchmark and
may invest in any companies it considers appropriate in accordance
with the investment mandate.
Financial Highlights
for the six-month period to 31 March
2023
KEY PERFORMANCE INDICATORS
NAV
total return Total Return1#
|
Share
price total return1#
|
Discount
per Ordinary Share1#
|
-2.1%
|
-5.0%
|
6p
|
(31 March
2022: -22.4%)
|
(31 March
2022: -22.6%)
|
(31 March
2022: 6p)
|
FINANCIAL
HIGHLIGHTS FOR THE SIX MONTH PERIOD TO 31
MARCH 2023
|
31
March 2023
|
31
March 2022
|
30
September 2022
|
NAV
per Ordinary Share1
|
607.8p
|
705.6p
|
632.1p
|
Share
price
|
509.0p
|
605.0p
|
548.0p
|
Share
price total return1,*,#
|
-5.0%
|
-22.6%
|
-29.1%
|
Discount
to NAV per Ordinary Share1
|
16.3%
|
14.3%
|
13.3%
|
Benchmark
1,*
|
-5.5%
|
-13.7%
|
-20.1%
|
Dividend
yield1,2,3
|
3.3%
|
2.8%
|
3.1%
|
Ongoing
charges1
|
1.6%
|
1.5%
|
1.6%
|
RETURN
PER ORDINARY SHARE
|
31
March 2023
|
31 March
2022
|
30
September 2022
|
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
Return
per Ordinary Share
|
6.71p
|
(20.78)p
|
(14.07)p
|
8.02p
|
(212.24)p
|
(204.22)p
|
16.77p
|
(289.37)p
|
(272.60)p
|
Revenue
return (earnings) per Ordinary Share is based on the revenue return
of £805,000 (31 March 2022: £964,000;
and the full year to 30 September
2022: £2,014,000). Capital return per Ordinary Share for the
half year is based on net capital loss of £2,492,000 (31 March 2022: net capital loss of £25,513,000;
and full year to 30 September 2022:
net capital loss of £34,746,000). These calculations are based on
the weighted average of 11,921,821 (31 March
2022: 12,020,661; and 30 September
2022: 12,007,165) Ordinary Shares in issue during the
period/year.
As at
31 March 2023, there were 11,807,563
Ordinary Shares of 10 pence each in
issue (31 March 2022: 12,013,503; and
30 September 2022: 11,930,201) which
excludes 3,318,207 Ordinary Shares held in treasury (31 March 2022: 3,318,207; and 30 September 2022: 3,318,207 shares held in
treasury). The shares held in treasury are treated as not being in
issue when calculating the weighted average of Ordinary Shares in
issue during the period/year. During the period 122,638 Ordinary
shares were purchased of which 3,727 shares were cancelled with the
balance of 118,911 pending cancellation. Since
the period end and up to 31 May 2023,
the Company has bought back 10,661 shares for
cancellation.
1Alternative
Performance Measures (“APMs”) definitions can be found in the
Glossary on pages 88 to 91 of the Annual Report.
2 The
yield as of 31 March 2023 is
comprised of the 2022 final dividend of 11
pence per share and the interim dividend for the six months
to 31 March 2023 of 6 pence per share, based on the share price as at
31 March 2023.
3 The yield
as of 31 March 2022 is comprised of
the 2021 final dividend of 11 pence
per share and the interim dividend for the six months to
31 March 2022 of 6 pence per share, based on the share price as at
31 March 2022.
* Movement
to 31 March relates to the preceding six months and movement to 30
September relates to the preceding twelve months.
# Key
Performance Indicator.
Chairman’s
Statement
Frances Daley
Chairman
Performance
EMEA
equity markets registered a small decline over the period,
following an extremely volatile performance in the previous
financial year. The relatively modest decline in the index of minus
5.5%, masked a diverse set of returns. Some markets in Europe rallied in excess of 30%, whilst Middle
Eastern markets were approximately 20% weaker.
Against
this backdrop, the Company’s Net Asset Value (“NAV”) registered a
small decline of minus 2.1%, with the portfolio outperforming the
benchmark.
Russian
assets in the portfolio continue to be valued at zero, whilst
extensive sanctions and restrictions on the sale of securities
remain in place. Dividends from Russian securities are being
received into a Company account, but cannot currently be
repatriated. The Board will continue to value these assets at zero
until circumstances permit otherwise. Consequently, there is no
exposure to Russia in the
Company’s NAV and Management Fees are not being charged on these
assets.
It is
encouraging that performance has continued to improve post the
write-down of Russian assets, with the portfolio ahead of the
benchmark over six months and one year. Regrettably, performance
over three and five years continues to be impacted by the negative
relative performance in the prior financial year, with the Company
lagging the benchmark across both periods. However, the portfolio
remains ahead of the benchmark over 7 and 10 years.
Investment
Portfolio
The strong
performance across markets in Emerging Europe reflected the
continent’s improving economic prospects against the backdrop of
falling energy prices, and a surge in many markets that had been
undervalued relative to other developed peers. The Company’s
holdings in Central and Eastern
Europe gained between 30-50%, with holdings in financials
some of our best performers, as these companies have benefitted
from rising interest rates and high demand for loans.
Similarly,
Turkish equities held in the portfolio returned in excess of 30%.
Holdings in the country performed strongest in the first half of
the period, supported by continued low interest rates and by local
savers seeking a return in the inflationary environment.
After
being some of the strongest performers globally in the first half
of 2022, markets in the Middle
East declined in absolute terms during the period due to a
combination of lower energy prices and a weaker US dollar. After
hitting a 20-year high at the end of Q3 2022, the US Dollar began
to depreciate largely on expectations of peaking interest rates,
which in turn amplified negative returns for markets with pegged
currencies, such as Saudi Arabia
and the UAE. Whilst the value of the Company’s holdings in these
markets declined over the period, stock selection across these
markets was strong and helped improve the Company’s relative
performance versus the benchmark.
Holdings
in South Africa had a negative
impact on relative performance. Consumer-focused holdings were
amongst the worst performers, as some businesses had to reduce
their trading hours due to disruptions to the country’s electricity
supply. In contrast, the best performers were gold miners as
investors sought out the safe haven asset amidst higher
volatility.
Discount
Management
The Board
continued to pursue an active discount management strategy during
the period, with the aim of containing discount volatility and
providing liquidity to the market.
During the
6-month period, 122,638 Ordinary Shares were bought back for
cancellation at an average price of £5.22 per Ordinary Share, for a
total cost of £640,000. The share buybacks added approximately
1.2 pence to NAV per Ordinary Share,
accounting for just under 0.2% of the total return to
Shareholders.
The
discount at 31 March 2023 was 16.3%
and the average discount during the period was 17.9%. This compares
with a discount of 14.3% at 31 March
2022. The average discount over the period has widened,
primarily due to increased levels of market volatility across our
investment universe and equity markets globally. This has had a
similar impact on the discounts of many investment
trusts
and is not
unique to our Company.
Interim
Dividend
Income
generated by the portfolio has also been impacted in the short-term
by the strong appreciation of Sterling over the reporting period
relative to most currencies in our investment universe, which has
weakened dividends received when expressed in GBP terms. The
dividends received from your investments and therefore the
dividends paid out to shareholders have been negatively impacted by
the removal of high payout Russian companies from our investment
universe due to the war in Ukraine. Income generated by the portfolio has
also been impacted in the short-term by the strong appreciation of
Sterling over the reporting period relative to most currencies in
our investment universe, which has weakened dividends received when
expressed in GBP terms. The Investment Manager continues to believe
the income potential of the portfolio will grow over the medium
term and that this growth will be sustainable.
In the
first half of the financial year, the income account generated a
return of 6.7 pence per Ordinary
Share, compared with 8.0 pence for
the same period last year. The Directors are proposing an interim
dividend of 6.0 pence per share,
which is the same as last year. The rebalancing of the amount of
dividend paid by way of an Interim Dividend and a Final Dividend
which occurred last year, allows for increased certainty at a time
when income projections remain subject to considerable
uncertainty.
Based on
dividends over
the prior 12 months and the share price as of the end of the first
half of the financial year, the Company’s shares yielded 3.3%. The
Board believes that, given the circumstances, this remains an
attractive yield. The Board remains mindful of the significance of
the continued payment of dividends to Shareholders. The Company
retains the
flexibility to pay out up to 1% per annum of NAV from capital as
income to Shareholders. The Investment Manager continues to believe
the income potential of the portfolio will grow over the medium
term and that this growth will be sustainable.
Gearing
There were
no borrowings during the period. At 31 March
2023, there was net cash of £1.4 million (31 March 2022: £1.4 million). The Company does
not currently use a loan facility but keeps its borrowing
arrangements and gearing policy under review. The Company may look
to make use of borrowing arrangements when markets are less
volatile with the objective of increasing portfolio
returns.
Outlook
Equity
markets are likely to remain volatile over the coming months as the
path for inflation and interest rates remains uncertain, and the
global economic outlook continues to present challenges for
corporate earnings growth in 2023. Whilst these trends will
undoubtedly impact our investment region, there are reasons to be
optimistic.
We have
already seen the positive effect Europe’s improving economic
picture has had on the returns across a number of countries in the
portfolio. Companies in the financial services sector in
Eastern Europe continue to
represent a significant portion of the portfolio and the Investment
Manager is positive on the prospects for the sector.
Middle
Eastern economies continue to benefit from low inflation, healthy
consumer demand and high capital investment. Whilst these markets
were weaker over the reporting period, the Investment Manager
continues to find many exciting opportunities for medium term
growth across a number of sectors.
The
economic backdrop in South Africa
is more challenged, given the ongoing issues with the country’s
electricity supply as well as heightened political risk. However,
opportunities do exist for well managed business to navigate what
is undoubtedly a difficult macroeconomic backdrop.
Finally,
the political calendar across EMEA for 2023 is fairly congested,
with the recent elections in Greece and Türkiye to be followed towards the
end of the year by elections in Poland. In Greece, the second term won by Prime Minister
Mitsotakis’ New Democracy party should help enable the continuation
of structural reform, whilst the victory for President Erdogan in
Türkiye will continue to present challenges as the country attempts
to unlock its economic potential. These are events that may provide
compelling bottom-up investment opportunities but also bring with
them a degree of risk.
Promotional
activity and keeping shareholders informed
The Board
and Investment Manager have in place an ongoing communications
programme that seeks to maintain the Company’s profile and its
investment remit, particularly amongst retail investors. Over the
review period we have continued to distribute our monthly BEMO News
which is emailed to engaged supporters, including many hundreds of
the Company’s shareholders. These emails provide relevant news and
views plus performance updates, which are particularly useful when
there is market uncertainty. If you have not already done so, I
encourage you to sign up for these targeted communications by
visiting the Company’s web page at www.bemoplc.com and clicking on
‘Register for email updates’. Alongside this, we are continuing to
refresh the Company’s website with new themed content, including a
recent video update from co-portfolio manager Adnan
El-Araby.
Frances Daley
Chairman
8 June 2023
Business
Model and Strategy
Barings
Emerging EMEA Opportunities PLC
|
• Focusing
on the markets of Emerging Europe, the Middle East and Africa, the
Company seeks out attractively valued, quality companies across
this diverse and fast-changing region.
|
• Large
investment region underrepresented in global portfolios, with a
portfolio that aims to deliver both attractive levels of income and
capital growth over the long term.
|
• Managed
by one of the region’s most experienced investment teams with a
consistent track record of delivering relative
outperformance.
|
• A
differentiated and innovative investment process driven by
fundamental bottom-up analysis – with a strong focus on
environmental, social and governance factors.
|
The
Company has no employees and the Board is comprised of
Non-Executive Directors. The day-to-day operations and functions of
the Company have been delegated to third-party service providers,
which are subject to the ongoing oversight of the Board. In line
with the stated investment philosophy, the Manager takes a
bottom-up approach, founded on research carried out using the
Manager’s own internal resources. This research enables the Manager
to identify what it believes to be the most attractive stocks in
EMEA markets. Further information can be found on pages 20 to 22 of
the Annual Report and Accounts for the year ended 30 September 2022.
Investment
Objective
The
Company’s investment objective is to achieve capital growth,
principally through investment in emerging and frontier equity
securities listed or traded on Eastern European, Middle Eastern and
African (EMEA) securities markets. The Company may also invest in
securities in which the majority of underlying assets, revenues
and/or profits are, or are expected to be, derived from activities
in EMEA but are listed or traded elsewhere (EMEA
Universe).
Purpose,
Values and Strategy
To achieve
this investment objective, the Board uses its breadth of skills,
experience and knowledge to oversee and work with the Investment
Manager, to ensure that it has the appropriate capability,
resources and controls in place to actively manage the Company’s
assets to meet its investment objective. The Board also select and
engage reputable and competent organisations to provide other
services on behalf of the Company.
The
Company’s values focus on transparency, clarity and constructive
challenge. The Directors recognise the importance of sustaining a
culture that contributes to achieving the purpose of the Company
that is consistent with its values and strategy.
Benchmark
The
Company’s comparator Benchmark is the MSCI Emerging Markets EMEA
Index (net dividends reinvested).
Investment
Policy
The
Company intends to invest for the most part in emerging and
frontier equity listed or traded on EMEA securities markets or in
securities in which the majority of underlying assets, revenues
and/or profits are, or are expected to be, derived from activities
in EMEA but are listed or traded elsewhere. To achieve the
Company’s investment objective, the Company selects investments
through a process of bottom-up fundamental analysis, seeking long
term appreciation through investment in mispriced
companies.
Where
possible, investments will generally be made directly into public
listed or traded equity securities including equity-related
instruments such as preference shares, convertible securities,
options, warrants and other rights to subscribe or acquire equity
securities, or rights relating to equity securities.
It is
intended that the Company will generally be invested in equity
securities; however, the Company may invest in bonds or other
fixed-income securities, including high risk debt securities. These
securities may be below investment grade. The number of investments
in the portfolio will normally range between 20 and 65.
The
Company may invest in unquoted securities, but the amount of such
investment is not expected to be material. The maximum exposure to
unquoted securities should be restricted to 5% of the Company’s
gross assets, at the time of investment, in normal circumstances.
The Company may also invest in other investment funds in order to
gain exposure to EMEA countries or gain access to a particular
market, or where such a fund represents an attractive investment in
its own right. The Company will not invest more than 10% of its
gross assets in other UK listed closed-ended investment funds, save
that, where such UK listed closed ended investment funds have
themselves published investment policies to invest no more than 15%
of their total assets in other listed closed-ended investment
funds, the Company will invest not more than 15% of its gross
assets in such UK listed closed ended investment funds.
Whilst
there are no specific limits placed on exposure to any one sector
or country, the Company seeks to achieve a spread of risk through
continual monitoring of the sector and country weightings of the
portfolio. The Company’s maximum limit for any single investment at
the time of purchase is the higher of 15% of gross assets or the
weight of the purchased security in the comparator benchmark plus
5%, with an upper maximum limit of 20% of gross assets (excluding
for cash management purposes).
Relative
guidelines will be based on the Morgan Stanley Capital
International “MSCI” Emerging Markets EMEA Index (net), which will
be the index used as the comparator benchmark.
The
Company may use borrowed funds to take advantage of investment
opportunities. However, it is intended that the Company would only
be geared when the Directors, advised by the Investment Manager,
have a high level of confidence that gearing would add significant
value to the portfolio. The Investment Manager has discretion to
operate with an overall exposure of the portfolio to the market of
between 90% and 110%, to include the effect of any derivative
positions.
The
Company may use derivative instruments for the purpose of efficient
portfolio management (which includes hedging) and for any
investment purposes that are consistent with the investment
objective and policies of the Company.
Discount
Control Mechanism
The Board
is aware of Shareholders’ continued desire for a strong discount
control mechanism, though also mindful of the need to provide the
Company the opportunity to achieve its goal of outperforming its
Benchmark.
With
effect from 1 October 2020, the Board
approved a tender offer trigger mechanism to provide Shareholders
with a tender offer for up to 25% of the Company’s issued Ordinary
Share capital if: (i) the average daily discount of the Company’s
market share capital to its net asset value (‘cum-income’) exceeds
12%, as calculated with reference to the trading of the Company’s
shares over the period between 1 October
2020 and 30 September 2025;
or
(ii) the
performance of the Company’s net asset value per share on a total
return basis does not exceed the return on the MSCI Emerging
Markets EMEA Index (net) by an average of 50 basis points per annum
over the Calculation Period.
Please
refer to the shareholder circular dated 19
October 2020 for further details.
In
addition, and in order to reduce the discount, the Board authorises
the Company’s shares to be bought on
the market, from time to time, where the share price is quoted at a
discount to NAV.
Report
of the Investment Manager
Our
strategy seeks to diversify your portfolio by harnessing the
long-term growth and income potential of Emerging EMEA. The
portfolio is managed by our team of experienced investment
professionals, with a repeatable process that also integrates
Environmental, Social and Governance (“ESG”) criteria.
Our
strategy
|
|
|
|
Access
Experienced investment team helps to foster strong relationships
with the
companies in which
we invest.
|
First-hand
Expertise
The investment team conducts hundreds of company meetings per year,
building long term relationships and insight.
|
Process
Extensive primary research and proprietary fundamental analysis,
evaluating companies
over a 5-year research horizon with macro considerations
incorporated through our Cost of Equity approach.
|
ESG
Integration
Fully integrated dynamic ESG assessment combined
with active engagement to positively influence
ESG practices.
|
A detailed
description of the investment process, particularly the ESG
approach can be found on pages 20 to 22 of the Annual Report and
Accounts for the year ended 30 September
2022.
Market
Summary
EMEA
equity markets were weaker over the period, with the MSCI EM EMEA
index declining -5.5% in GBP terms. Against a challenging market
backdrop, the Company’s NAV declined by -2.1% but outperformed the
benchmark, which fell by -5.5%.
Headline
performance masked a diverse set of results for countries in our
region, with markets in the Middle
East suffering some profit taking after outperforming for
much of 2022 whilst, in contrast, Central and Eastern Europe rallied significantly on
improving economic prospects. The broader global themes of high
inflation and rising interest rates also had an impact on
performance at times during the period.
The EMEA
region generated positive returns at the start of the period,
helped by a resilient economic backdrop and improved company
earnings expectations, as risks of a severe recession receded in
light of falling energy prices that are now back at levels last
seen prior to Russia’s invasion of Ukraine. Positive sentiment also reflected
hopes that inflation across developed countries might be cooling
and, in response, major central banks would slow the pace of
interest rate hikes.
This early
rally was, however, brought to an abrupt halt, as strong economic
data in the US, and higher than anticipated inflation led investors
to reassess the path for interest rates. While inflation has begun
to recede as food and energy costs have fallen, core inflation,
which strips away these more volatile facets, has not fallen as
fast as anticipated. This led investors to change their
perceptions, moving from the expectation of falling interest rates,
to an environment where rates would likely stay higher for
longer.
Later in
the period the market began predicting a peak in interest rates due
to the slowing pace of central bank hikes and because of stresses
in the banking sector following the collapse of US regional banks
SVB and Signature, and then shortly thereafter the effective rescue
takeover of Credit Suisse by UBS. These events contributed to the
depreciation of the Dollar, which had begun to weaken in Q4 2022,
and amplified negative returns in Middle Eastern markets due to
their pegged currencies.
Regionally,
markets in Central and Eastern
Europe were some of the best performers across EMEA,
reflecting the reduced risk of a recession across the continent
following the significant retrenchment in energy prices.
Greece, Poland, Hungary and Czechia all returned approximately
30% over the period. Performance was also amplified by local
currency strength, with the Czech Koruna, Hungarian Forint and
Polish Zloty all appreciating versus the Pound over the
period.
EMEA
Market Performance (in GBP, based on MSCI
indices)
Currency
Returns (local currency returns vs. GBP)
Country
Returns
Greece
|
35.0%
|
Turkiye
|
33.2%
|
Poland
|
32.1%
|
Czechia
|
27.9%
|
Hungary
|
26.6%
|
Egypt
|
11.8%
|
South
Africa
|
6.2%
|
Kuwait
|
-8.1%
|
Saudi
Arabia
|
-16.4%
|
U.A.E.
|
-17.8%
|
Qatar
|
-24.0%
|
Source:
Barings, Factset, MSCI, March
2023
Currency
Returns
Greece
|
0.2%
|
Turkiye
|
-12.7%
|
Poland
|
3.9%
|
Czechia
|
4.9%
|
Hungary
|
11.5%
|
Egypt
|
-42.5%
|
South
Africa
|
-8.0%
|
Kuwait
|
-8.5%
|
Saudi
Arabia
|
-9.4%
|
U.A.E.
|
-9.5%
|
Qatar
|
-9.4%
|
Source:
Barings, Factset, MSCI, March
2023.
Eastern
European markets were some of the strongest performers in absolute
terms, whilst weakness in middle Eastern markets was compounded by
currency depreciation.
South Africa also outperformed over the period, although to
a lesser extent than markets in Europe, amid a domestic economy with
contrasting drivers. At one end of the spectrum, the country’s gold
miners were some of the best performers as investors sought out
safe haven assets, whilst retailers were impacted by ongoing supply
disruption to local electricity supply.
In
contrast, markets in the Middle
East suffered from some profit taking and retreated from
their earlier highs in 2022. Falling energy prices, a weaker US
dollar and concerns of oversupply following a period of robust
capital market activity also contributed to the negative
performance.
Our region
underperformed relative to developed and broader emerging markets
over the period. Whilst we benefitted from the significant rally
across Emerging European markets, this was offset by weakness in
the Middle East, with Gulf markets
beginning to underperform in Q4 2022 at the time when broader
emerging markets began to outperform, reflecting the reopening of
China’s economy.
Income
The
Company’s key objective is to deliver capital growth from a
carefully selected portfolio of emerging EMEA companies. However,
we are also focused on generating an attractive level of income for
investors from the companies in the portfolio.
The
portfolio continues to be impacted by our inability to receive
dividends from Russian holdings, which are being accrued in a
Company account but which cannot be repatriated due to sanctions.
Unfortunately, this has resulted in a lower level of dividend
generation compared to recent history. Despite this, we are of the
opinion that the underlying revenue generation potential relative
to present valuations within the region remains one of the
strongest globally.
Rising
pay-out ratios, efficiency gains, and an encouraging economic
environment, most notably in the Middle
East and Eastern Europe,
will all contribute positively to revenue growth for the portfolio
over the medium term. Importantly, we believe that this revenue
growth will be sustainable.
Macro
Themes
In
line with our bottom-up approach, our primary focus is to identify
attractive investment opportunities at the company level for our
Shareholders. Nevertheless, we remain vigilant and mindful of
broader macro effects within the region. This in turn helps to
support the contribution to performance from our company selection,
accessing long term growth opportunities, while reducing the
effects of declines in performance from major macro
dislocations.
Energy
Security: One Year On
Russia’s
invasion of Ukraine led to
significant increases in energy prices and served to push energy
security up the agenda, most notably in Europe, which relied on Russia heavily for its energy mix. Sanctions
that followed shortly after from both the EU and US included a ban
on Russian coal imports, alongside a ban on crude oil and refined
petroleum products, with limited exceptions. In response to these
sanctions, Russian natural gas exports to the EU declined
significantly.
Whilst
energy prices have fallen from their peaks, the issue remains a
priority for many governments as they seek alternative ways to meet
their energy needs. Prior to the invasion, Russia accounted for approximately 35% of the
European Union’s gas imports and 29% of their oil. Since then,
dependence on Russian energy has been significantly reduced, with
data released for the fourth quarter of 2022 showing that
Russia accounts for approximately
19% of the bloc’s natural gas imports and 10% of oil
imports.
The US,
the UK and Norway have all
benefited from the EU shifting away from Russian energy, with
natural gas imports from these countries increasing significantly
since the onset of the war. There have also been opportunities for
countries in our investment universe: the share of EU oil imports
coming from Saudi Arabia increased
from 5% in 2021 to 9% as of Q3 2022, whilst Qatar now accounts for 9% of natural gas
imports, up from 5% in 2021.
We believe
this shift will continue to benefit the economies of Middle Eastern
markets. Demand for the region’s exports should not only improve
the spending power of its consumers, creating investment
opportunities across multiple sectors, but will also allow for
continued investment into infrastructure and the diversification of
their economies away from oil, helping support long term financial
stability.
Supplying
the Green Revolution
The need
to transition towards a world less dependent on fossil fuels
remains one of the most critical issues of our time. This will
require substantial investments in solar and wind generation
capacity and will require mining and processing significantly
higher amounts of raw materials - namely copper, aluminum, nickel,
platinum group metals, and rare earths, often referred to as ‘green
metals’ - than we have in the last 30 years.
A lack of
investment in supply has led to growing imbalances of these raw
materials. For example, in the last couple of years we have seen a
huge increase in the price of copper, from approximately
$6000 per tonne in 2019 to
$9000 per tonne at the start of 2023.
This economically sensitive commodity has increased in price
despite most economists predicting slowing global growth or even a
recession. We believe the increase in the price of copper is caused
by concerns regarding a lack of supply of a metal that is critical
to the energy transition with global inventories of copper now
reportedly at their lowest levels since 2008. Tightness in supply
is not expected to be alleviated in the near-term as the time to
find, permit, develop and commission a new mine can take up to 15
years, setting the scene for higher pricing for the foreseeable
future. These supply constraints are not just confined to copper,
as the mining of other commodities such as lithium and nickel also
require similar lead times against a backdrop of higher
demand.
The
Company continues to invest in a variety of companies that have a
role to play in meeting this demand for raw materials. For example,
Anglo American (nickel, copper),
Anglo American Platinum and Impala Platinum (platinum group metals)
and KGHM (copper).
The
Political Calendar: Türkiye and Greece
It is
difficult to overstate the importance of the recent elections in
the Eastern Mediterranean neighbouring countries of Türkiye and
Greece as the electorate set the
tone for what are very promising markets, with a host of
attractively valued, quality companies.
In
Greece, victory for Prime Minister
Mitsotakis’ New Democracy party is a vote for the continuation of
the country’s structural reform program. The program has so far
contributed to an impressive economic recovery, record economic
growth rates in the European context and a tangible pick up in
foreign direct investment. However, this has been offset somewhat
by high inflation that has dented the government’s
popularity.
In
Türkiye, the victory for President Erdogan will come with
significant challenges given his historic approach to monetary
policy. Cleaning the slate after the elections won’t come without
challenges and it will need much more than gestures for markets to
start believing in the country’s economic potential. However, any
indication that the Erdogan administration may be turning towards
more orthodox monetary policies would likely be greeted favourably
by the market.
Portfolio
Country Weight
Saudi
Arabia
|
31.1%
|
South
Africa
|
25.9%
|
U.A.E.
|
10.0%
|
Poland
|
8.0%
|
Qatar
|
5.7%
|
Kuwait
|
4.8%
|
Hungary
|
4.4%
|
Turkiye
|
4.1%
|
Greece
|
3.9%
|
Czechia
|
1.9%
|
Source:
Barings. March 2023.
Portfolio
Sector Weight
Financials
|
48.3%
|
Materials
|
14.7%
|
Consumer
Discretionary
|
10.6%
|
Communication
Services
|
9.5%
|
Industrials
|
4.8%
|
Real
Estate
|
4.2%
|
Energy
|
3.2%
|
Consumer
Staples
|
3.1%
|
Information
Technology
|
1.5%
|
Health
Care
|
0.1%
|
Source:
Barings. March 2023.
Company
Selection
Our
team regularly engages with management teams and analyses industry
competitors to gain an insight into a company’s business model and
sustainable competitive advantages. Based on this analysis, we seek
to take advantage of these perceived inefficiencies through our
in-depth fundamental research, which includes an integrated
Environmental, Social and Governance (ESG) assessment, and active
engagement, to identify and unlock mispriced growth opportunities
for our Shareholders.
Stock
selection significantly improved the portfolio’s relative return
over the period, whilst sector asset allocation had a small
negative impact.
Stock
selection in the Financials
sector had
the largest positive impact on relative performance. The
portfolio’s holdings in Emerging
Europe
were some of the best performers, as high interest rates and robust
credit demand across the region have fed through to strong company
earnings, whilst Polish financials also benefitted from ongoing
efforts to resolve the legacy burden of loan loss provisions on
mortgages denominated in Swiss francs. Polish insurance business
PZU, National Bank of Greece and
Komercni in Czechia were amongst the portfolio’s best performers on
a relative basis.
Strong
performance of European financials was partially offset by
Middle
Eastern banks,
with the holding Saudi National Bank (SNB) detracting after the
company came under pressure following uncertainty regarding its
M&A strategy and news that the government will be reducing
mortgage subsidies. The holding in Qatar National Bank (QNB) also underperformed,
caused in part by a more muted growth outlook domestically. We
reduced the holdings in both SNB and QNB over the
period.
Despite
volatility in the global banking sector towards the end of the
reporting period we continue to believe that financials in our
investment region, and BEMO’s holdings specifically, are in a
strong financial position. The banks are well capitalised, have
firm regulatory oversight and hedge their interest rate exposure.
The sector is also highly concentrated, meaning retail and
corporate deposits are less vulnerable to withdrawals.
Engagement
Case Study:
Tawuniya
(insurance company)
|
We
regularly engage with companies with the aim of improving corporate
behaviour or enhancing disclosure levels.
|
Overview:
• Over the
period we engaged with Saudi insurance company Tawuniya to discuss
its ESG policies and identify areas for improvement.
|
Objective:
•
Following release of Tawuniya’s first ESG report we wanted to
engage with them to give guidance on areas for improvement and to
monitor targets that the company has set.
|
Outcome:
• We
initially engaged with the company to encourage them to publish a
formal ESG policy, which was acknowledged
and actioned shortly thereafter.
• We
welcomed the publication of the ESG report but recognised the
potential for improvement in areas such as workers’ rights,
whistleblowing, and data security.
• We have
since re-engaged with the company and suggested enhancements to
these areas for the next report. We continue to monitor Tawuniya’s
progress against these enhancements and other targets the company
has set itself.
|
Positioning
in the Materials
sector
also improved relative performance over the period, driven largely
by holdings in
South Africa. Gold
miner AngloGold Ashanti was one of the portfolio’s top performers
on a relative basis, helped by rising gold prices and news of a
joint venture with Gold Fields to create Africa’s largest gold
mine. In contrast Anglo American Platinum underperformed,
reflecting a weaker production outlook and some short term earnings
weakness.
In
the Industrials
sector
Turkish
conglomerate
Koc Holding was one of the best
performers. The operational performance of Koc’s subsidiaries has
been strong, particularly the company’s export orientated
businesses, such as refiner Tupras, that have benefitted from a
weaker Lira in recent months.
The
Consumer
Staples sector had
a negative impact on relative returns in aggregate.
South
African retailers
were amongst the weakest performers, as they suffered from
significant wage inflation and disruption to trading hours because
of electricity cuts. Pick N Pay and Mr Price Group were two of the
largest detractors on a relative basis and both were sold over the
period. In contrast, amongst Consumer
Discretionary holdings
the position in ecommerce and technology investor Prosus
outperformed. The company holds a significant stake in Tencent, which is expected to benefit from the
rebound of consumption in China as
a result of COVID-19 restrictions being lifted, and a more
favourable regulatory backdrop.
The
portfolio’s underweight exposure to the Health
Care sector
also had a negative impact on relative performance following the
strong performance of a small number of benchmark holdings. There
continues to be a very limited opportunity set in this space across
EMEA and we believe there are better opportunities
elsewhere.
Outlook
In the
short term equity markets are likely to remain volatile as
investors monitor developments in Ukraine, as well as the outlook for inflation
and global economic growth. However, there is evidence that
monetary tightening may have moderated inflation which is
supportive. While the region will not be immune to these global
trends, we believe there are a number of compelling opportunities
across EMEA.
The
Middle East continues to invest
large sums of capital to further diversify their economies. This,
combined with robust consumer demand, lower inflation and higher
labour participation rate should continue to support earnings
growth across multiple sectors. The representation of the
Middle East in major indices has
risen recently, whilst a burgeoning IPO market is broadening the
investment opportunity. Interestingly, Middle Eastern markets
remain underrepresented within investor portfolios, which – in
combination with the region’s economic and structural tailwinds
mentioned above – should help increase demand across the region’s
equity markets.
South Africa presents another interesting investment
opportunity, primarily because of its access to a broad range of
metals, many of which have a role to play in the energy transition.
High commodity prices have helped improve the country’s fiscal
position, whilst increased demand from China reopening its economy will also be
supportive. Political risk has increased recently and we remain
vigilant to the potential for social unrest, whilst the country
struggles to resolve the problem of electricity supply
outages.
Markets
across Central and Eastern Europe
look set to have a softer economic landing than originally feared,
helped by the significant fall in energy prices. Opportunities will
exist as the region pivots away from Russian gas, particularly via
the support of large EU infrastructure projects, such as the
European Green Deal and NextGen EU funds. The region is also well
placed to take advantage of nearshoring trends via the provision of
lower cost skilled labour, strong regulatory protection, and
crucially, a lower delivery time for the end consumer.
While
Emerging European, Middle East and
African markets have experienced challenges, the recent market
volatility has also resulted in a potential opportunity,
particularly for long term investments in high quality businesses
with the potential for earnings growth that have seen their share
prices weighed down by broader market moves. Markets continue to
digest near term challenges to economic growth, alongside shifts
from disruptive technological innovation and geopolitical tensions,
all of which may cause mispricings from which the portfolio can
benefit. This, however, creates an environment in which divergence
in company performance is likely to increase as companies adjust
and winners emerge stronger This
environment offers improving opportunities for active management to
secure outperformance. We intend to take advantage of this
opportunity by adopting, where possible, an increasingly active
approach designed to enhance potential returns for our
shareholders.
Baring
Asset Management Limited
Investment
Manager
8 June 2023
Investment
Portfolio
as at 31 March 2023
|
Holding
|
Primary country
of listing or investment
|
Market value
£’000
|
% of
Net assets
|
1
|
Al Rajhi Bank
|
Saudi Arabia
|
4,869
|
6.78%
|
2
|
Naspers Limited
|
South Africa
|
4,489
|
6.25%
|
3
|
Saudi National Bank
|
Saudi Arabia
|
3,493
|
4.87%
|
4
|
Saudi Basic Industries
|
Saudi Arabia
|
3,370
|
4.70%
|
5
|
Qatar National Bank
|
Qatar
|
2,987
|
4.16%
|
6
|
Firstrand
|
South Africa
|
2,969
|
4.14%
|
7
|
MTN Group
|
South Africa
|
2,600
|
3.62%
|
8
|
Saudi Telecom
|
Saudi Arabia
|
2,477
|
3.45%
|
9
|
PZU
|
Poland
|
2,214
|
3.08%
|
10
|
Abu Dhabi Commercial Bank
|
United Arab Emirates
|
2,073
|
2.89%
|
11
|
Aldar Properties
|
United Arab Emirates
|
2,051
|
2.86%
|
12
|
Koç Holding
|
Türkiye
|
1,975
|
2.75%
|
13
|
National Bank of Kuwait
|
Kuwait
|
1,831
|
2.55%
|
14
|
Anglogold Ashanti
|
South Africa
|
1,787
|
2.49%
|
15
|
Mol Hungarian Oil and Gas
|
Hungary
|
1,617
|
2.25%
|
16
|
Etihad Etisalat
|
Saudi Arabia
|
1,590
|
2.22%
|
17
|
National Bank of Greece
|
Greece
|
1,584
|
2.21%
|
18
|
OTP Bank
|
Hungary
|
1,458
|
2.03%
|
19
|
Allegro
|
Poland
|
1,441
|
2.01%
|
20
|
First Abu Dhabi Bank
|
United Arab Emirates
|
1,374
|
1.91%
|
21
|
Komercni Bank
|
Czechia
|
1,345
|
1.87%
|
22
|
Saudi Arabian Mining
|
Saudi Arabia
|
1,307
|
1.82%
|
23
|
Anglo American
|
South Africa
|
1,290
|
1.80%
|
24
|
Human Soft
|
Kuwait
|
1,180
|
1.64%
|
25
|
BUPA Arabia
|
Saudi Arabia
|
1,126
|
1.57%
|
26
|
Nedbank Group
|
South Africa
|
1,058
|
1.47%
|
27
|
Industries Qatar
|
Qatar
|
1,025
|
1.43%
|
28
|
Shoprite Holdings
|
South Africa
|
1,021
|
1.42%
|
29
|
Arabian Internet and Communication
Services
|
Saudi Arabia
|
1,015
|
1.41%
|
30
|
Riyad Bank
|
Saudi Arabia
|
949
|
1.32%
|
31
|
Anglo American Platinum
|
South Africa
|
934
|
1.30%
|
32
|
Alpha Services and Holdings
|
Greece
|
909
|
1.27%
|
33
|
The Cooperative Insurance
|
Saudi Arabia
|
877
|
1.22%
|
34
|
Emaar Properties
|
United Arab Emirates
|
872
|
1.22%
|
35
|
PKO Bank Polski
|
Poland
|
855
|
1.19%
|
36
|
Impala Platinum
|
South Africa
|
831
|
1.16%
|
37
|
BIM Birlesik Magazalar
|
Türkiye
|
815
|
1.14%
|
38
|
Capitec
|
South Africa
|
798
|
1.11%
|
39
|
KGHM Polska
|
Poland
|
739
|
1.03%
|
40
|
Saudi Tadawul Group
|
Saudi Arabia
|
623
|
0.87%
|
41
|
Adnoc Dilling Company
|
United Arab Emirates
|
616
|
0.86%
|
42
|
Inpost
|
Poland
|
372
|
0.52%
|
43
|
Bid Corporation
|
South Africa
|
360
|
0.50%
|
44
|
Kuwait Finance House
|
Kuwait
|
357
|
0.50%
|
45
|
Jumbo
|
Greece
|
228
|
0.32%
|
46
|
D Market Electronic Services
|
Türkiye
|
91
|
0.13%
|
47
|
Dr Sulaiman Al Habib Medical Group
|
Saudi Arabia
|
83
|
0.12%
|
48
|
Gazprom
|
Russia
|
—
|
0.00%
|
49
|
GMK Norilskiy Nikel
|
Russia
|
—
|
0.00%
|
50
|
Magnit
|
Russia
|
—
|
0.00%
|
51
|
Moscow Exchange
|
Russia
|
—
|
0.00%
|
52
|
NK Lukoil
|
Russia
|
—
|
0.00%
|
53
|
Novatek
|
Russia
|
—
|
0.00%
|
54
|
Sberbank Rossi
|
Russia
|
—
|
0.00%
|
56
|
Tcs Group Holding
|
Russia
|
—
|
0.00%
|
56
|
United Company Rusal
|
Russia
|
—
|
0.00%
|
57
|
X5 Retail Group
|
Russia
|
—
|
0.00%
|
58
|
Yandex
|
Russia
|
—
|
0.00%
|
|
Total investments
|
|
69,925
|
97.43%
|
|
Net current assets
|
|
1,842
|
2.57%
|
|
Net assets
|
|
71,767
|
100.00%
|
Income
Statement
for the six months to 31 March 2023
(unaudited)
|
Six
months to 31 March 2023
|
Six months
to 31 March 2022
|
Year ended
30 September 2022
|
|
Notes
|
Revenue
£’000
|
Capital
£’000
|
Total
£’000
|
Revenue
£’000
|
Capital
£’000
|
Total
£’000
|
Revenue
£’000
|
Capital
£’000
|
Total
£’000
|
(Losses)/gains
on investments
held at
fair value through
profit or
loss
|
|
—
|
(2,167)
|
(2,167)
|
—
|
(25,265)
|
(25,265)
|
—
|
(34,402)
|
(34,402)
|
Foreign
exchange gains/losses
|
|
—
|
(104)
|
(104)
|
—
|
52
|
52
|
—
|
190
|
190
|
Income
|
|
1,270
|
—
|
1,270
|
1,829
|
—
|
1,829
|
3,440
|
—
|
3,440
|
Investment
management fee
|
|
(55)
|
(221)
|
(276)
|
(74)
|
(300)
|
(374)
|
(133)
|
(533)
|
(666)
|
Other
expenses
|
|
(342)
|
—
|
(342)
|
(409)
|
—
|
(409)
|
(790)
|
(1)
|
(791)
|
Return on
ordinary activities
before
taxation
|
|
873
|
(2,492)
|
(1,619)
|
1,346
|
(25,513)
|
(24,167)
|
2,517
|
(34,746)
|
(32,229)
|
Taxation
|
|
(68)
|
—
|
(68)
|
(382)
|
—
|
(382)
|
(503)
|
—
|
(503)
|
Return for
the period
|
|
805
|
(2,492)
|
(1,687)
|
964
|
(25,513)
|
(24,549)
|
2,014
|
(34,746)
|
(32,732)
|
Return per
ordinary share
|
3
|
6.71p
|
(20.78p)
|
(14.07p)
|
8.02p
|
(212.24p)
|
(204.22p)
|
16.77p
|
(289.37p)
|
(272.60p)
|
The total column of this statement is the income statement of the
Company.
The supplementary revenue and capital columns are both prepared
under the guidance published by the AIC.
All revenue and capital items in the above statement derive from
continuing operations. No operations were acquired or discontinued
during the period.
There is no other comprehensive income and therefore the return for
the year is also the total comprehensive income for the
year.
The notes below form part of these financial statements.
Statement
of Financial Position
as at 31 March 2023
(unaudited)
|
Notes
|
At 31
March
2023
£’000
|
At 31
March
2022
£’000
|
At
30
September
2022
£’000
|
Fixed assets
|
Investments at fair value through profit or loss
|
6
|
69,925
|
83,233
|
75,059
|
Current assets
|
|
Debtors
|
|
976
|
647
|
467
|
Cash and cash equivalents
|
|
1,417
|
1,350
|
233
|
|
|
2,393
|
1,997
|
700
|
Current liabilities
|
Creditors:
amounts falling due within one year
|
|
(551)
|
(462)
|
(351
|
Net current assets
|
|
1,842
|
1,535
|
349
|
Net assets
|
|
71,767
|
84,768
|
349
|
Capital and reserves
|
Called-up share capital
|
4
|
1,513
|
1,533
|
1,525
|
Capital redemption reserve
|
|
3,275
|
3,255
|
3,263
|
Share premium
|
|
1,411
|
1,411
|
1,411
|
Capital reserve
|
|
63,886
|
76,707
|
67,018
|
Revenue reserve
|
|
1,682
|
1,862
|
2,191
|
Total equity
|
|
71,767
|
84,768
|
75,408
|
Net asset value per share
|
5
|
607.81p
|
705.60p
|
632.08p
|
Number of shares in issue excluding
Treasury
|
|
11,807,563
|
12,013,503
|
11,930,201
|
The notes below form part of these financial statements.
Statement
of Changes in Equity
for the six months to 31 March 2023
(unaudited)
|
Called-up
share
capital
£’000
|
Capital
redemption
reserve
£’000
|
Share
premium
account £’000
|
Capital reserve
£’000
|
Revenue
reserve £’000
|
Total
£’000
|
For the six months ended 31 March 2023
|
|
|
|
|
|
|
Opening balance as at 1 October 2022
|
1,525
|
3,263
|
1,411
|
67,018
|
2,191
|
75,408
|
Return for the six months to 31 March 2023
|
—
|
—
|
—
|
(2,492)
|
805
|
(1,687)
|
Contributions by and distributions to Shareholders:
|
|
|
|
|
|
|
Repurchase of Ordinary Shares
|
(12)
|
12
|
—
|
(640)
|
—
|
(640)
|
Dividends paid
|
—
|
—
|
—
|
—
|
(1,314)
|
(1,314)
|
Total contributions by and distributions to
Shareholders:
|
(12)
|
12
|
—
|
(640)
|
(1,314)
|
(1,954)
|
Balance as at 31 March 2023
|
1,513
|
3,275
|
1,411
|
63,886
|
1,682
|
71,767
|
|
Called-up
share
capital
£’000
|
Capital
redemption
reserve
£’000
|
Share
premium
account £’000
|
Capital reserve
£’000
|
Revenue
reserve £’000
|
Total
£’000
|
For
the six months ended 31 March 2022
|
|
|
|
|
|
|
Opening balance as at 1 October 2021
|
1,536
|
3,252
|
1,411
|
102,479
|
2,220
|
110,898
|
Return for the six months to 31 March 2022
|
—
|
—
|
—
|
(25,513)
|
964
|
(24,549)
|
Contributions by and distributions to Shareholders:
|
|
|
|
|
|
|
Repurchase of Ordinary Shares
|
(3)
|
3
|
—
|
(259)
|
(1,322)
|
(259)
|
Dividends paid
|
—
|
—
|
—
|
—
|
(1,322)
|
(1,322)
|
Total contributions by and distributions to
Shareholders:
|
(3)
|
3
|
|
(259)
|
|
(1,581)
|
Balance
as at 31 March 2022
|
1,533
|
3,255
|
1,411
|
76,707
|
1,862
|
84,768
|
|
Called-up
share
capital
£’000
|
Capital
redemption
reserve
£’000
|
Share
premium
account £’000
|
Capital reserve
£’000
|
Revenue
reserve £’000
|
Total
£’000
|
For
the year ended 30 September 2022
|
|
|
|
|
|
|
Opening balance as at 1 October 2021
|
1,536
|
3,252
|
1,411
|
102,479
|
2,220
|
110,898
|
Return for the year
|
—
|
—
|
—
|
|
2,014
|
(32,732)
|
Contributions by and distributions to Shareholders:
|
|
|
—
|
(715)
|
—
|
(715)
|
Repurchase of Ordinary Shares
|
(11)
|
11
|
—
|
|
—
|
(715)
|
Dividends paid
|
—
|
—
|
—
|
—
|
(2,043)
|
(2,043)
|
Total contributions by and distributions to
Shareholders:
|
(11)
|
11
|
—
|
(715)
|
(2,043)
|
(2,758)
|
Balance
at 30 September 2022
|
1,525
|
3,263
|
1,411
|
67,018
|
2,191
|
75,408
|
The distributable reserves of the Company at 31 March 2023 were £63,886,000 (31 March 2022: £88,384,000; 30 September 2022: £61,870,000).
All investments are held at fair value through profit or loss. When
the Company revalues the investments still held during the period,
any gains or losses arising are credited/charged to the capital
reserve.
The notes below form part of these financial statements.
Notes
to the Financial Statements
for the
half year ended 31 March 2023
(unaudited)
1.
Accounting Policies
Barings
Emerging EMEA Opportunities PLC (the “Company”) is a company
incorporated and registered in England and Wales. The principal activity of the Company
is that of an investment trust company within the meaning of
Sections 1158/159 of the Corporation Tax Act 2020 and its
investment
approach is detailed in the Strategic Report set out in the Annual
Report and Financial Statements of the Company for the year ended
30 September 2022.
Basis
of Preparation
The
Company’s Financial Statements for the six months to 31 March 2023 have been prepared on the basis of
the accounting policies set out in the Annual Report and Financial
Statements of the Company for the year ended 30 September 2022 and in accordance with FRS 104:
“Interim Financial Reporting”.
The
investments of the Company are listed and are carried at fair
value. The Company has therefore elected to remove the Cash Flow
Statement from the Half-Yearly Report, as permitted by FRS 102
section 7.
The
accounting policies are set out in the Company’s Annual Report and
Financial Statements for the year ended 30
September 2022 and remain unchanged.
Going
Concern
The
financial statements have been prepared on a going concern basis
and on the basis that approval as an investment trust company will
continue to be met.
The
Directors have made an assessment of the Company’s ability to
continue as a going concern and are satisfied that the Company has
adequate resources to continue in operational existence for a
period of at least twelve months from the date when these financial
statements were approved.
In making
the assessment, the Directors have considered the likely impacts of
the international and economic uncertainties on the Company,
operations and the investment portfolio. These include, but are not
limited to, the impact of COVID-19, the war in Ukraine, international uncertainties,
political and economic instability in the UK, supply shortages and
inflationary pressures.
The
Directors noted that the Company’s current cash balance exceeds any
short term liabilities, the Company holds a portfolio of listed
investments. The Directors are of the view that the Company is able
to meet the obligations of the Company as they fall due. The
surplus cash enables the Company to meet any funding requirements
and finance future additional investments. The Company is a
closed-end fund, where assets are not required to be liquidated to
meet day to day redemptions.
The
Directors, the Manager and other service providers have put in
place contingency plans to minimise disruption. Furthermore, the
Directors are not aware of any material uncertainties that may cast
significant doubt on the Company’s ability to continue as a going
concern, having taken into account the liquidity of the Company’s
investment portfolio and the Company’s financial position in
respect of its cash flows, borrowing facilities and investment
commitments (of which there are
none of
significance). Therefore, the financial statements have been
prepared on the going concern basis.
Segmental
Reporting
The
Directors are of the opinion that the Company is re-engaged in a
single segment of business, being the investment
business.
Comparative
Information
The
financial information contained in this Half Year Report does not
constitute statutory accounts as defined in the Companies Act 2006.
The financial information for the half-year period ended
31 March 2023 has not been audited or
reviewed by the Company’s Auditor. The comparative figures for the
financial year ended 30 September
2022 are not the Company’s statutory accounts for that
financial year. Those accounts have been reported on by the
Company’s Auditor and delivered to the Registrar of Companies. The
report of the Auditor was (i) unqualified, (ii) did not include a
reference to any matters to which the Auditor drew attention by way
of emphasis without qualifying their report, and (iii) did not
contain a statement under section 498 (2) or (3) of the Companies
Act 2006.
2.
Dividend
During the
period, the Company paid a final dividend of 11 pence per Ordinary Share for the year ended
30 September 2022 on 6 February 2023 to Ordinary shareholders on the
register at 16 December 2022
(ex-dividend 15 December
2022).
An interim
dividend of 6 pence per Ordinary
Share for the period ended 31 March
2023 has been declared and will be paid on 28 July 2023 to Ordinary shareholders on the
register at the close of business on 23 June
2023 (ex-dividend 22 June
2023).
3.
Return per Ordinary Share
The total
return per Ordinary Share is based on the return on ordinary
activities after taxation of £(1,687,000) (six months ended
31 March 2022: £(24,549,000); and
year ended 30 September 2022:
£(32,732,000)) and on a weighted average of 11,991,821 Ordinary
Shares in issue (excluding Ordinary Shares held in treasury) during
the six months ended 31 March 2023
(six months ended 31 March 2022:
weighted average of 12,020,661 Ordinary Shares in issue; and year
ended 30 September 2022: weighted
average of 12,007,165 Ordinary Shares in issue).
4.
Called – up share capital
|
Number
of shares
|
Nominal
value
£’000
|
Allotted,
issued and fully paid
Ordinary
Shares of 10p each
|
|
|
Opening
balance
|
15,248,408
|
1,525
|
Ordinary
Shares bought back for cancellation
|
(122,638)
|
(12)
|
Total
Ordinary Shares in issue
|
15,125,770
|
1,513
|
|
Number
of shares
|
|
Treasury
shares
|
3,318,207
|
Total
Ordinary Share capital excluding treasury shares
|
11,807,53
|
During the
six months ended 31 March 2023
122,638 Ordinary Shares of 10p were bought back for cancellation
for an aggregate consideration of £640,000. The shares bought back
for cancellation consists of shares cancelled and pending
cancellation which are excluded when calculating the NAV on the day
of acquisition.
The
Company at 31 March 2023 holds
3,318,207 Ordinary Shares in treasury and are treated as not being
in issue when calculating the NAV per share. Shares held in
Treasury are non-voting and not eligible for receipt of
dividends.
The
allotted, called up and fully paid shares at 31 March 2023 consisted of 15,125,770 Ordinary
Shares of 10p each in issue, and 3,318,207 Ordinary Shares held in
treasury. Therefore the total number of Ordinary Shares with voting
rights and ranking for dividends consisted of 11,807,563 at
31 March 2023.
Since the
period end and up to 31 May 2023, the
Company has bought back 10,661 shares for cancellation.
5.
Net Asset Value per Ordinary Share
The NAV
per Ordinary Share is based on net assets of £71,767,000
(31 March 2022: £103,053,000;
30 September 2022: £110,898,000) and
Ordinary Shares, being the number of Ordinary Shares in issue
excluding shares held in treasury at the relevant period ends
(31 March 2023: 11,807,563,
31 March 2022: 12,243,905 and year
ended 30 September 2022:
12,044,780).
6.
Fair Value of Investments
The fair
value hierarchy analysis for financial instruments held at fair
value at the period end is as follows:
Financial
assets at fair value through profit or loss at 31 March
2023
|
Level
1
£’000
|
Level
2
£’000
|
Level
3
£’000
|
Total
£’000
|
Equity
investments
|
71,767
|
|
|
|
Financial
assets at fair value through profit or loss at 31 March
2022
|
Level 1
£’000
|
Level
2
£’000
|
Level
3
£’000
|
Total
£’000
|
Equity
investments
|
83,233
|
—
|
—
|
83,233
|
Financial
assets at fair value through profit or loss at 30 September
2022
|
Level 1
£’000
|
Level 2
£’000
|
Level
3
£’000
|
Total
£’000
|
Equity
investments
|
75,059
|
—
|
—
|
75,059
|
The
currency exposure is exposure of the currency values of the
investee companies.
|
Saudi
Arabia
|
South
Africa
|
United
Arab
Emirates
|
Poland
|
Qatar
|
Kuwait
|
Hungary
|
Türkiye
|
Greece
|
Czechia
|
United
States
|
UK
|
Total
|
2023
|
SAR
£’000
|
ZAR
£’000
|
AED
£’000
|
PLN
£’000
|
QAR
£’000
|
KWD
£’000
|
HUF
£’000
|
TRY
£’000
|
EUR
£’000
|
CZK
£’000
|
USD
£’000
|
GBP
£’000
|
£’000
|
Cash
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
1,410
|
7
|
1,417
|
Debtor
|
170
|
153
|
199
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
277
|
976
|
Creditor
|
—
|
—
|
(88)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(463)
|
(551)
|
Investments
|
21,779
|
18,137
|
6,986
|
5,621
|
4,012
|
3,368
|
3,075
|
2,881
|
2,721
|
1,345
|
—
|
—
|
69,925
|
Total
|
21,949
|
18,290
|
7,097
|
5,621
|
4,012
|
3,368
|
3,075
|
2,881
|
2,721
|
1,522
|
1,410
|
(179)
|
71,767
|
7.
Related Party Disclosures and Transactions with the
AIFM
Investment
management fees charged in the period were £276,000 (six months to
31 March 2022: £374,000; year ended
30 September 2021: £666,000). At the
end of the half year, there was an investment management fee of
£45,000 outstanding (31 March 2021:
£102,000;30 September 2022:
£46,000).
Fees paid
to the Directors for the six months amounted to £77,000 (six months
to 31 March 2022: £77,000; year ended
30 September
2022: £154,500).
Fees paid
to the Company’s Directors are disclosed in the Director’s
Remuneration Report within the Company’s Annual Report and Accounts
for 2022. At the year end, there were no outstanding fees payable
to the Directors (year ended 30 September
2022: £nil).
Post
balance sheet event subsequent to 31 March
2023, a further 10,661 Ordinary shares have been bought back
for cancellation with a nominal value of £1,066.10
at a total cost of £53,688.
Interim
Management Report
Going
Concern
The
financial statements have been prepared on a going concern basis
and on the basis that approval as an investment trust company will
continue to be met. The Directors have made an assessment of the
Company’s ability to continue as a going concern and are satisfied
that the Company has adequate resources to continue in operational
existence for a period of at least 12 months from the date when
these financial statements were approved.
In making
the assessment, the Directors have considered the impact of the
conflict in Ukraine on the Company
and the investment portfolio. Whilst the write-down of Russian
securities in the portfolio has had a significant impact on net
asset value, the Company continues to operate at a size similar to
levels seen historically. The Directors have also discussed the
impact of the conflict on the Company’s ability to pay dividends to
Shareholders, both in the near-term and over the next few
years.
The
Directors noted that the Company’s current cash balance exceeds any
short term liabilities, the Company holds a portfolio of liquid
listed investments. The Directors are of the view that the Company
is able to meet the obligations of the Company as they fall due.
The surplus cash enables the Company to meet any funding
requirements and finance future additional investments. The Company
is a closed end fund, where assets are not required to be
liquidated to meet day to day redemptions.
The
Directors are not aware of any material uncertainties that may cast
significant doubt on the Company’s ability to continue as a going
concern, having taken into account the liquidity of the Company’s
investment portfolio and the Company’s financial position in
respect of its cash flows, borrowing facilities and investment
commitments (of which there are none of significance). Therefore,
the financial statements have been prepared on the going concern
basis.
Principal
Risks and Uncertainties
The
Company is exposed to a variety of risks and uncertainties. The
Board, through delegation to the Audit Committee, has undertaken an
assessment and review of the principal risks facing the Company,
together with a review of any new risks which may have arisen
during the year, including those risks which would threaten the
Company’s business model, future performance, solvency or
liquidity. The Directors have considered the impact of the
continued uncertainty on the Company’s financial position and based
on the information available to them at the date of this Report,
have fair-value adjusted Russian securities to zero in response to
exchange closures and sanction activities as a result of the
conflict in Ukraine. The Directors
have concluded that no further adjustments are required to the
accounts as at 31 March
2023.
A review
of the half year including reference to the risks and uncertainties
that existed during the period and the outlook for the Company can
be found in the Chairman’s Statement and in the Investment
Manager’s Report.
The
principal risks faced by the Company fall into the following broad
categories: Investment and Strategy, Adverse Market Conditions,
Size of the Company, Share Price Volatility and
Liquidity/Marketability Risk, Loss of Assets and Engagement of
Third-Party Service providers.
Information
on each of these areas is given in the Strategic Report within the
Annual Report and Accounts for the year ended 30 September 2022. In the view of the Board these
principal risks and uncertainties are as applicable to the
remaining six months of the financial year as they were to the six
months under review.
The Board
is aware that due to the current situation in Russia and Ukraine, sanctions imposed by a number of
jurisdictions have resulted in the devaluation of the Russian
currency, a downgrade in the country’s credit rating, an immediate
freeze of Russian assets, a decline in the value and liquidity of
Russian securities, property or interests, and/or other adverse
consequences. Sanctions could also result in Russia taking counter measures or other
actions in response, which may further impair the value and
liquidity of Russian securities.
These
sanctions, and the resulting disruption of the Russian economy, may
cause volatility in other regional and global markets and may
negatively impact the performance of various sectors and
industries. The Board continue to monitor the situation and will
provide further updates as needed.
Related
Party Transactions
The
Investment Manager is regarded as a related party and details of
the management fee payable during the six months ended 31 March 2023 is shown in the Income Statement
above. There have been no other related party transactions during
the six months ended 31 March 2023.
The Directors’ current level of remuneration is £28,000 per annum
for each Director, with the Chairman of the Audit Committee
receiving an additional fee of £3,500 per annum and the Senior
Independent Director receiving an additional fee of £1,000 per
annum. The Chairman’s fee is £38,000 per annum.
Directors’
Responsibility Statement
in respect
of the Half Year Report for the six months ended 31 March 2023
Responsibility
Statement
The
important events that have occurred during the period under review,
the key factors influencing the financial statements and the
principal risks and uncertainties for the remaining six months of
the financial year are set out in the Interim Management Report
above.
The
Directors confirm that to the best of their knowledge:
• the
condensed set of financial statements has been prepared in
accordance with UK Accounting Standards; Financial Reporting
Standard 102, and gives a true and fair view of the assets,
liabilities and financial position of the Company; and the interim
management report (which includes the Chairman’s Statement) as
required by the FCA’s Disclosure Guidance and Transparency Rule
4.2.4R; and
• this
Half Year Report includes a fair review of the information required
by:
a)
DTR 4.2.7R
of the Disclosure Guidance and Transparency Rules, being an
indication of important events that have occurred during the first
six months of the financial year and their impact on the condensed
set of financial statements; and a description of the principal
risks and uncertainties for the remaining six months of the year;
and
b)
DTR 4.2.8R
of the Disclosure Guidance and Transparency Rules, being related
party transactions that have taken place in the first six months of
the current financial year and that have materially affected the
financial position or performance of the Company during that
period; and any changes in the related party transactions that
could do so.
This Half
Year Report was approved by the Board of Directors on 8 June 2023 and the above responsibility
statement was signed on its behalf by Frances Daley, Chairman.
Glossary
AIFM
The AIFM,
or Alternative Investment Fund Manager, is Baring Fund Manager
Limited, which manages the portfolio on behalf of the Company’s
Shareholders. The AIFM has delegated the investment management of
the portfolio to Baring Asset Management Limited (the “Investment
Manager”).
Alternative
performance measures (“APM”)
An APM is
a numerical measure of the Company’s current, historical or future
financial performance, financial position or cash flows, other than
a financial measure defined or specified in the applicable
financial framework. In selecting these APMs, the Directors
considered the key objectives and expectations of typical investors
in an investment trust such as the Company.
Benchmark
The
Company’s comparator Benchmark is the MSCI Emerging Markets EMEA
Index. This index is designed to measure the performance of large
and midcap companies across 11 Emerging Markets (EM) countries in
Europe, the Middle East and Africa (EMEA). This includes, Czechia,
Egypt, Greece, Kuwait, Hungary, Poland, Qatar, Saudi
Arabia, South Africa,
Türkiye and United Arab
Emirates.
The
Benchmark is an index against which the performance of the Company
may be compared. This is an indicative performance measure as the
overall investment objectives of the Company differ to the index
and the investments of the Company are not aligned to this
index.
Discount/Premium
(APM)
If the
share price is lower than the NAV per share, the shares are trading
at a discount. The size of the discount is calculated by
subtracting the share price of 509.00p (2021: 605.00p) from the NAV
per share of 607.81p (2021: 705.60p) and is usually expressed as a
percentage of the NAV per share, 16.3% (2021: 14.3%). If the share
price is higher than the NAV per share, the situation is called a
premium.
Dividend
Pay-out Ratio (APM)
The ratio
of the total amount of dividends paid out to Shareholders relative
to the net income of the company. Calculated by dividing the
Dividends Paid by Net Income.
Dividend
Reinvested Basis
Applicable
to the calculation of return, this calculates the return by taking
any dividends generated over the relevant period and reinvesting
the proceeds to purchase new shares and compound
returns.
Dividend
Yield (APM)
The annual
dividend expressed as a percentage of the current market
price.
EMEA
The
definition of EMEA is a shorthand designation meaning Europe, the Middle
East and Africa. The
acronym is used by institutions and governments, as well as in
marketing and business when referring to this region: it is a
shorthand way of referencing the two continents (Africa and Europe) and the Middle Eastern sub-continent
all at once.
Emerging
Markets
An
emerging market economy is a developing nation that is becoming
more engaged with global markets as it grows. Countries classified
as emerging market economies are those with some, but not all, of
the characteristics of a developed market.
Environmental,
Social and Governance (“ESG”)
ESG
(environmental, social and governance) is a term used in capital
markets and used by investors to evaluate corporate behaviour and
to determine the future financial performance of companies. The
Company will evaluate investments in investee companies
considering:
•
Environmental criteria considering how the company performs as a
steward of nature;
• Social
criteria examine how the company manages relationships with
employees, suppliers, customers, and communities; and
•
Governance deals with the company’s leadership, executive pay,
audits, internal controls, and shareholder rights.
Frontier
Markets
A frontier
market is a country that is more established than the least
developed countries globally but still less established than the
emerging markets because its economy is too small, carries too much
inherent risk, or its markets are too illiquid to be considered an
emerging market.
Gearing
(APM)
Gearing
refers to the ratio of the Company’s debt to its equity capital.
The Company may borrow money to invest in additional investments
for its portfolio. If the Company assets grow, the Shareholders’
assets grow proportionately more because the debt remains the same.
But if the value of the Company’s assets fall, the situation is
reversed. Gearing can therefore enhance performance in rising
markets but can adversely impact performance in falling
markets.
The
Company repaid the bank loan facility during the prior financial
year eliminating gearing at the prior year end. Currently the
Company has no gearing.
For the
purposes of AIFMD, the Company is required to disclose the
leverage. Leverage is any method which increases the Company’s
exposure, including the borrowing of cash and use of derivatives.
It is expressed as a ratio between the Company’s exposure and its
net asset value and is calculated under the Gross and Commitment
Methods in accordance with AIFMD.
Under the
Gross Method, exposure represents the aggregate of all the
Company’s exposures other than cash balances held in base currency
and without any offsetting. Investments (A) divided by Total
Shareholders’ Funds (B).
Gross
method = 98% (A = £69,925,000 / B = £71,767,000) x 100.
The
Commitment Method takes into account hedging and other netting
arrangements designed to limit risk, offsetting them against the
underlying exposure. Investments (A) plus current assets (C)
divided by Total Shareholders’ funds (B).
Commitment
method = 100% (A = £69,925,000) + (C = Cash £1,417,000 + Debtor
£976,000) / B = £72,318,000) x 100.
Gross
Assets
Total of
all the Company’s investments and current assets.
Growth at
a Reasonable Price (“GARP”) Investing GARP investing incorporates
elements of growth and value investing, focusing on companies which
have sustainable growth potential but do not demand a high
valuation premium.
Idiosyncratic
Risk
Idiosyncratic
or “Specific risk” is a risk that is particular to a
company.
Net
Asset Value (“NAV”)
The NAV is
shareholders’ funds expressed as an amount per individual Ordinary
Share. Shareholders’ funds are the total value of all the Company’s
assets, at current market value, having deducted all liabilities
revalued for exchange rate movements. The total NAV per Ordinary
Share is calculated by dividing the Shareholders’ funds of
£84,768,000 by the number of Ordinary Shares in issue excluding
Treasury Shares of 12,013,503.
Ongoing
Charges Ratio (APM)
The
Ongoing Charges Ratio (OCR) is a measure of what it costs to cover
the cost of running the fund. The Company’s expenses for the period
(excluding finance costs and certain non-recurring items) of
£618,000 consisting of investment management fees of £276,000 and
other expenses of £342,000 less non-recurring expenses of £nil are
annualised and expressed as a percentage of the average net assets
of £75,824,000 during the period as disclosed to the London Stock
Exchange. The OCR for the period to 31 March is 1.6%.
Return
per Ordinary Share (APM)
The return
per Ordinary Share is based on the revenue/capital earned during
the year divided by the weighted average number of Ordinary Shares
in issue during the year.
Relative
Returns
Relative
return is the difference between investment return and the return
of a benchmark.
Risk-adjusted
Returns
Risk-adjusted
return refines an investment’s return by measuring how much risk is
involved in producing that return.
Return
on Equity (APM)
Return on
equity (“ROE”) is a measure of financial performance calculated by
dividing net income by Shareholders’ equity. Because Shareholders’
equity is equal to a company’s assets minus its debt, ROE could be
thought of as the return on net assets. This measure is used to
understand how effectively management is using a company’s assets
to create profits.
Share
Price
The price
of a single share of a company. The share price is the highest
amount someone is willing to pay for the stock, or the lowest
amount that it can be bought for.
Systematic
Risk
Systematic
risk or “Market risk” is the risk inherent to the entire market or
market segment, not just a stock or industry.
Total
Assets
Total
assets include investments, cash, current assets and all other
assets. An asset is an economic resource, being anything tangible
or intangible that can be owned or controlled to produce positive
economic value. The total assets less all liabilities is equivalent
to total Shareholders’ funds.
Total
Return (APM)
Total
return statistics enable the investor to make performance
comparisons between investment trusts with different dividend
policies. The total return measures the combined effect of any
dividends paid, together with the rise or fall in the share price
or NAV. This is calculated by the movement in the NAV or share
price plus dividend income reinvested by the Company at the
prevailing NAV or share price.
NAV
Total Return (APM)
NAV Total
Return is calculated by assuming that dividends paid out are
reinvested into the NAV on the ex-dividend date.
|
31
March 2023
|
Closing
NAV per share (p)
|
607.81
|
Add back
total dividends paid in the
six months
to 31 March 2023 (p)
|
11.00
|
Benefits
from reinvesting dividend (p)
|
0.00
|
Adjusted
closing NAV (p)
|
618.81
|
Opening
NAV per share (p)
|
632.08
|
NAV total
return (%)
|
-2.10%
|
Share
price total return is calculated by assuming dividends
paid
out are
reinvested into new shares on the ex-dividend date.
|
31
March 2023
|
Closing
share price (p)
|
509.00
|
Add back
total dividends paid in the
six months
to 31 March 2023 (p)
|
11.00
|
Benefits
from reinvesting dividend (p)
|
0.60
|
Adjusted
closing share price (p)
|
520.60
|
Opening
share price (p)
|
548.00
|
Share
price total return (%)
|
-5.00%
|
Directors
and Officers
Directors
Frances
Daley, Chairman
Vivien
Gould
Christopher
Granville
Calum
Thomson
Nadya
Wells
Registered
Office
6th
Floor
65 Gresham
Street
London EC2V
7NQ
Company
Secretary
Link
Company Matters Limited
6th
Floor
65 Gresham
Street
London EC2V
7NQ
Company
Number
04560726
Alternative
Investment Fund Manager
Baring Fund
Managers Limited
20 Old
Bailey
London EC4M
7BF
Telephone:
020 7628 6000
Facsimile:
020 7638 7928
Auditor
BDO
LLP
55 Baker
Street
Marylebone
London W1U
7EU
Depositary
State
Street Trustees Limited
20
Churchill Place
Canary
Wharf
London E14
5HJ
Custodian
State
Street Bank & Trust Company Limited
20
Churchill Place
Canary
Wharf
London E14
5HJ
Administrator
Link
Alternative Fund Administrators Limited
Broadwalk
House
Southernhay
West
Exeter EX1
1TS
Registrar
Link
Group
10th
Floor
Central
Square
29
Wellington Street
Leeds LS1
4DL
Corporate
Broker
JP Morgan
Cazenove
25 Bank
Street
Floor
29
Canary
Wharf
London E14
5JP
Website
www.bemoplc.com
Shareholder
Information
Company
Number
04560726
ISIN
GB0032273343
LEI
213800HLE2UOSVAP2Y69
SEDOL
3227334
Share
Dealing
Shares can
be traded through your usual stockbroker.
Share
Register Enquiries
The
register for the Ordinary Shares is maintained by Link Group. In
the event of queries regarding your holding, please contact the
Registrar on 0371 664 0300 or on +44 (0)371 664 0300, UK Calls are
charged at the standard geographic rate and will vary by provider.
Calls outside the United Kingdom will be charged at the applicable
international rate. Lines are open between 09:00 - 17:30, Monday to
Friday excluding public holidays in England and Wales. You can also
contact the registrar by email at
enquiries@linkgroup.co.uk.
Changes of
name and/or address must be notified in writing to the Registrar:
Link Group, 10th Floor, Central Square, 29 Wellington Street, Leeds
LS1 4DL.
Electronic
Communications from the Company
Shareholders
now have the opportunity to be notified by email when the Company’s
Annual Report and other formal communications are available on the
Company’s website, instead of receiving printed copies by post.
This has environmental benefits in the reduction of paper,
printing, energy and water usage, as well as reducing costs to the
Company. If you have not already elected to receive electronic
communications from the Company and wish to do so, please contact
the Registrar using the details shown above. Please have your
investor code to hand.
If you hold
shares via a nominee, it is the responsibility of the nominee to
provide you with copies of the Annual Report and any other
documentation.
NAV
Information
The Company
releases its NAV per share daily to the LSE.
Share
Price
The
Company’s shares are listed on the LSE.
Annual
and Half Year Reports
Copies of
the Annual and Half Year Reports are available on the Company’s
website, www.bemoplc.com, or from the Secretary on telephone number
+44 (0) 333 300 1950.
Financial
Calendar
|
Date*
|
Announcement
of interim results
|
June
2023
|
Interim
dividend
|
July
2023
|
Announcement
of final results
|
December
2023
|
Annual
General Meeting
|
January
2024
|
Payment
of final dividend
|
February
2024
|
* These
dates are provisional and subject to change.
Website
www.bemoplc.com
National
Storage Mechanism
A copy of
the Half-Yearly Report will be submitted to the National Storage
Mechanism ("NSM") and will be available for inspection at the NSM,
which is situated at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism
LEI: 213800HLE2UOSVAP2Y69