{"success":true,"data":{"pressRelease":{"id":"161232","rtpr_id":"nPRr69327a-20261006","ticker":"FEML","exchange":"LSE","all_tickers":["FEML"],"title":"REG-Fidelity Emerging Markets Limited: Final Results","author":"PR Newswire","published_at":"2026-10-06T06:00:28.410Z","article_body":"Fidelity Emerging Markets Limited\nFinal Results for the year ended 30 June 2026\n\n \nPerformance Highlights  * Share price total return of +99.3% and NAV\ntotal return of +92.3% significantly outperforms the benchmark total return of\n+48.2%\n* Five-year performance comfortably clears hurdle for conditional tender offer\n* Enhanced investment tool kit adds significant value\n* The Board has announced a final dividend of $0.33 per Participating\nPreference Share.\n \n\nFor further information, please contact:\n\nGeorge Bayer\n\nCompany Secretary\n\n+44 20 7961 4240\n\nFIL Investments International\n\n \nFinancial Highlights\n 30 June 2026 30 June 2025 \n Assets as at 30 June \n USD \n Gross Asset Exposure 1 $1,386.1m $1,235.3m \n Equity Shareholders’ Funds $864.0m $771.6m \n NAV per Participating Preference Share 2 $21.94 $11.99 \n Dividend per Participating Preference Share $0.33 $0.26 \n Dividend Yield 1.6% 2.4% \n Gross Gearing 2,3 60.4% 60.1% \n Net Gearing 2,4 8.8% 5.5% \n Exchange Rate (USD to GBP) 1.33 1.37 \n GBP \n Gross Asset Exposure 1,5 £1,044.3m £901.4m \n Equity Shareholders’ Funds 5 £651.0m £563.1m \n NAV per Participating Preference Share 2,5 £16.53 £8.75 \n Share Price and Discount as at 30 June \n Participating Preference Share Price £15.30 £7.83 \n Discount to NAV per Participating Preference Share 7.4% 10.5% \n Number of Participating Preference Shares held outside Treasury 39,373,154 64,342,245 \n Earnings for the year ended 30 June \n Revenue Earnings per Participating Preference Share 6 $0.32 $0.31 \n Capital Earnings per Participating Preference Share 6 $8.23 $1.52 \n Total Earnings per Participating Preference Share 6 $8.55 $1.83 \n Ongoing charges ratio 2 0.87% 0.83% \n\n1 The value of the portfolio exposed to market price movements.\n\n2 Alternative Performance Measure – refer below and to the Glossary of\nTerms.\n\n3 Gross Asset Exposure less Equity Shareholders’ Funds expressed as a\npercentage of Equity Shareholders’ Funds.\n\n4 Net Market Exposure less Equity Shareholders’ Funds expressed as a\npercentage of Equity Shareholders’ Funds.\n\n5 The conversion from USD to GBP is based on exchange rates prevailing at the\nreporting dates.\n\n6 Calculated based on weighted average number of participating preference\nshares in issue during the year.\n  Chairman‘s Statement\n \n\nI am pleased to present your Company’s 37th annual report. As we reach the\nfifth anniversary of Fidelity’s appointment as manager, it is gratifying to\nbe able to report a fourth successive year in which Fidelity Emerging Markets\nLimited (‘the Company’)’s net asset value (‘NAV’) total returns have\nbeaten the Company’s benchmark, the MSCI Emerging Markets Total Return Index\n(‘the Index’), and a third year of strong absolute returns in both the NAV\nand the share price. While NAV performance can be seen as the best measure of\na fund manager’s skill, the share price arguably represents investors’\nrecognition of that skill. Your Board and I are delighted that the Company’s\nshare price total return has outperformed its NAV total return for a third\nyear in a row, with both outperforming the Index. This is a resounding\nvindication of your Portfolio Managers, Nick Price and Chris Tennant, and\ntheir broad and flexible investment approach, not just an output of an\nincreasingly positive period for emerging markets as a whole. Over the 12\nmonths under review the performance has been truly stellar, and the Board and\nI would like to congratulate the Portfolio Managers and their team on these\nresults and thank them for their efforts. In fact, performance has been so\nstrong that your Company ranked in the top 10 of all investment trusts (over\n200 of them) for NAV and share price total return performance over both one\nand three years to 30 June 2026, ahead of all peers in the Association of\nInvestment Companies’ (AIC) Global Emerging Markets sector.\n\n \nOverview\nDuring the 12-month period to 30 June 2026, the Company’s NAV total return\nwas 92.3% in GBP terms, compared with 48.2% for the Index. The share price\ntotal return was 99.3% – effectively doubling investors’ money – while\nthe discount to NAV narrowed from 10.5% at the beginning of the period to 7.4%\nat the end, spending most of the year in single figures. Performance was\nstrong across the whole period, despite continued geopolitical tensions,\nincluding the war in Iran, which has put considerable upward pressure on\nenergy prices – and inflation more broadly – throughout much of the world.\n\n \n\nI noted in my Chairman’s Statement in last year’s annual report that\nsentiment towards emerging markets appeared to have turned a corner after a\nlong period in which US equities had been preeminent. The return from the\nIndex in the period under review is further evidence of this; indeed, it is\nroughly double the 25.8% total return of the S&P 500 index (Net Total Return,\nGBP), the main US benchmark. However, I firmly believe that it would be wrong\nfor investors to conclude that such strong relative and absolute performance\nmean further upside is limited. After 18 years in a consolidation pattern,\nemerging markets are only just stepping into the spotlight on the world stage,\nhaving played second fiddle ever since the global financial crisis.\n\n \n\nThe magnitude of your Company’s outperformance in the year under review is\ntestament both to the Portfolio Managers’ skill in stock picking and their\nfull deployment of the broad investment toolkit available to them. (For a full\nexplanation of the toolkit, please see above) It is particularly notable that\nin a strongly positive year for the market as a whole, the short positions in\nthe portfolio still added value, accounting for around a quarter of the excess\nreturn versus the Index. Yield enhancement strategies (selling Options to\ngenerate income) and the allocation to small- and mid-sized companies –\na notable differentiating factor versus peers – also contributed. The\nability to take such positions is a key advantage of the closed-end structure,\nwhile the execution of the strategy is greatly facilitated by the research\nefforts of Fidelity’s large team of locally based emerging markets analysts,\nas well as derivatives and risk management specialists.\n\n \n\nThe portfolio continues to include Russian assets which are currently valued\nat zero given the inability to trade them. Any future resolution of the\nconflict and relaxation of applicable sanctions could therefore provide an\nuplift to NAV if those assets were able to recover realisable value. Further\ndetails can be found below.\n\n \n\nThe Portfolio Managers’ report on the following pages contains a wealth of\ndetail on the contributors to absolute and relative performance in the period\nunder review. However, I would draw attention particularly to the very high\nactive share (a measure of how much the portfolio differs from the Index) and\nthe skill with which the team has managed volatility in semiconductors. With\nthe rapid development of artificial intelligence (‘AI’) technologies\ncontinuing to dominate the headlines, having appropriate exposure to large\nindex constituents such as Korea’s SK Hynix and Taiwan Semiconductor\nManufacturing Company has been essential. Yet AI, with its associated need for\nlarge-volume data storage and power, is not just a technology story; it is\nalso a resources story, and your Portfolio Managers’ stock picking within\nthe materials and industrials sectors has also contributed steadily to returns\nwhile the majority of investors have been more narrowly focused on IT.\n\n \nDue diligence trip\nIn April 2026, your Board was fortunate to have the opportunity to visit Hong\nKong and China with Fidelity’s team. In September 2025, Nick Price relocated\nfrom London to Hong Kong, which is a hub for Fidelity International’s\nactivity in Asia. With Asia representing around 80% of the emerging markets\nuniverse by market capitalisation, it is an important part of the opportunity\nset, and it was good to see Nick in his new home and meet the large team of\nlocally based analysts. During the trip, we were able to see the investment\nteam working together, and to hear from them and some of the Company’s key\nholdings about their confidence in the future. We also had an extensive\nmeeting with the risk management team – the largest outside the UK – and\nwere both encouraged and reassured by the robustness and highly detailed\nnature of their processes.\n\n \nDividend\nThe Board is recommending a final dividend of $0.33 per Participating\nPreference Share for the year ended 30 June 2026 (2025: $0.26) for approval by\nshareholders at the Annual General Meeting (‘AGM’) to be held on 1\nDecember 2026. As ever, I would highlight that the Board does not have a\nfixed dividend policy, because income is an output rather than an aim of the\ninvestment process, and therefore no guarantee can be offered as to the level\nof any future dividends.\n\n \nBoard composition\nAs noted in the half-year report, Katherine Tsang completed nine years’\nservice (the recommended maximum under the AIC Code of Corporate Governance)\nin July 2026, and as such she intends to stand down at the 2026 AGM. A search\nhas been completed to find a suitably qualified individual to succeed her, the\nBoard is pleased to announce the appointment of Dr Shefaly Yogendra and a\nseparate announcement in relation to this appointment will be made shortly.\nThere have been no other changes to the Board of Directors in the period under\nreview.\n\n \nDiscount management\nThe discount to NAV narrowed during the year, beginning at 10.5% and ending at\n7.4%, as noted above. After narrowing steadily between July and October 2025\nto around 6%, the discount remained broadly between 5% and 10% for the\nremainder of the period.\n\n \n\nThe Board remains committed to using share repurchases to help reduce the\nvolatility of discount to NAV. Any share repurchases are completed at prices,\nwhich are accretive to NAV for ongoing shareholders. During the year under\nreview, we bought back 8,527,914 shares in the market (excluding the c.25% of\nshares in issue repurchased from Strathclyde Pension Fund in November 2025),\nrepresenting 13.2% of shares in issue at the start of the period. At the AGM\non 1 December 2026, we will seek to renew the existing annual authority to\nrepurchase up to 14.99% of our Participating Preference Shares.\n\n \n\nIt is gratifying that although the pace of regular buybacks has remained\nvirtually unchanged compared with the previous year, strong performance has\nmeant that total assets and market capitalisation have both risen\nsubstantially. This greater scale supports liquidity and helps maintain the\nCompany’s relevance to wealth managers and other investors for whom market\nliquidity is an important consideration. Fidelity has also seen increased\nengagement from wealth managers during the year.\n\nWe are pleased to be a popular choice among retail investors. Retail investors\nrepresented 18.2% of the shareholder base on 30 June 2026, compared with 4.1%\non 30 June 2025, and the Company featured on several investment trust\nbest-selling lists during the period. The Board welcomes this broadening of\nthe shareholder base and the increased participation of retail investors.\nFidelity has continued to raise the Company’s profile through its marketing,\nmedia, social media and distribution activity. The Board will continue to\nsupport activity aimed at attracting new investors, broadening demand for the\nCompany’s shares and, over time, supporting a narrower discount.\n\n \nExtraordinary General Meetings\nThe Company held two Extraordinary General Meetings during the financial year.\nThe first, in October 2025, approved the Strathclyde Repurchase, which was\ncovered in detail in last year’s Chairman’s Statement. The repurchase\nincreased NAV per share by approximately 4.5%.\n\n \n\nThe second EGM was held in May 2026 after 63% of the share buyback authority\ngranted at the 2025 AGM had been used. Shareholders approved a renewed\nauthority to repurchase up to 6,201,500 shares, representing 14.99% of the\nshares in issue at the latest practicable date. The resolution was approved by\n100% of votes cast, on a turnout of 71%.\n\n \nAnnual General Meeting\nThis year’s AGM will be held on 1 December 2026 at 8:30 a.m. at the\nregistered office of the Company, Level 3, Mill Court, La Charroterie, St\nPeter Port, Guernsey GY1 1EJ. The Notice of the AGM, containing full details\nof the business to be conducted at the meeting. Your attention is also drawn\nto the Corporate Governance section of the Directors’ Report where\nresolutions relating to special business are explained. Electronic proxy\nvoting is now available and shareholders are encouraged to submit voting\ninstructions using the web-based voting facility at www.eproxyappointment.com\nand for institutional shareholders via the CREST system, CREST messages must\nbe received by the issuer’s agent (ID number 3RA50) not later than\n8:30 a.m. on 29 November 2026. In order to use electronic proxy voting,\nshareholders will require their shareholder registration number, control\nnumber and PIN. If you do not have access to these details please contact the\nCompany’s Registrar, Computershare; their contact details can be found in\nthe Annual Report.\n\n \nArticles of Incorporation\nThe Board is proposing to replace article 17 of the articles of incorporation\nrelating to the determination of net asset value and the definition of the\n“Valuation Day”. These changes simplify these provisions and will allow\nthe Directors to make amendments to the timing and methodology of determining\nthe net asset value without updating the articles. They will allow the timing\nto be regularised with the UK time zone to make the process of determining and\nreporting more efficient. However, it is intended to continue to release the\nnet asset value on a daily basis and there is no current intention to change\nthe methodology for the calculation.\n\n \n\nA full tracked version of all the changes proposed to the Articles is\navailable at\nhttps://investment-trusts.fidelity.co.uk/fidelity-emerging-markets. The\nprincipal changes proposed to the Articles are set out in more detail in the\nDirectors’ Report.\n\n \nOutlook\nOne of the relative headwinds facing emerging markets in recent years has been\ninvestor appetite, which has been far more focused on developed markets, most\nparticularly the US. While in the long-term stock market performance is driven\nmainly by corporate earnings, in the short term it may be driven by momentum,\nas the weight of money pushes share prices up (or down). However, to anyone\nsuspecting that they may have missed the boat after such a stellar year for\nyour Company and its investment universe, I would point out two things. First,\nUK investors have in fact continued to pull money out of emerging markets\nfunds in aggregate during the year under review: figures from the Investment\nAssociation (the industry body for UK investment managers) show that a net\n£882m was withdrawn from global emerging markets funds between July 2025 and\nJune 2026, despite six months of positive net flows between October and March.\nMeanwhile, the North America sector (which is overwhelmingly US rather than\nCanada) saw net inflows of over £500m. Despite the net outflows from emerging\nmarkets, your Board remains confident that emerging markets are at the\nfoothills of what can be achieved over the coming years. The second thing is\nthat emerging markets as a group are on a far sounder economic footing than\nmost large developed markets, which are beset by geopolitical tensions,\ngroaning under the weight of enormous government debt and battling food and\nenergy price inflation, all of this while struggling to generate meaningful\neconomic growth or productivity gains. While developed markets are still\nreaping the whirlwind of Covid-era stimulus, emerging markets have gone\nthrough the economic pain of the pandemic and are leaner, fitter and more\nself-sufficient as a result. So even after a standout year in the markets, I\nwould venture that the best is yet to come from the huge and diverse\nopportunity set in which your Company invests.\n\n \n\nIt is, however, an inescapable truth that markets can go down as well as up.\nThis is one of the reasons why Nick, Chris and the team deploy such a broad\nset of tools, including the ability to take short positions, as well as\nensuring that the Company’s holdings are well diversified across countries,\nthemes and sectors. The resulting portfolio looks genuinely different from the\nmajority of peers and is arguably better positioned to offer a degree of\ndownside protection should a period of market consolidation or\nretrenchment occur.\n\n \n\nFollowing the five-year performance conditional tender offer calculation date\non 30 September 2026, I can confirm that the Company’s NAV total return\noutperformed the Index over the relevant five-year period and, as a result,\nthe 25% tender offer will not proceed. It is pleasing to see this result and\nthe sustained performance, discipline and rigour of the investment process\nover a longer performance period. Your Board plans to renew the conditional\ntender offer on the same terms. The new five year review period will be 1 July\n2026 to 30 June 2031, this period has been adjusted slightly to align with the\nCompany’s financial year end.\n\n \n\nThe Company has committed to hold a continuation vote every five years. This\nallows shareholders the opportunity to decide on the long-term future of the\nCompany. The next continuation vote will take place at this year’s AGM on\nTuesday, 1 December 2026. Given the strong performance of the Company your\nBoard unanimously recommends that shareholders vote in favour\nof continuation.\n\n \nHeather Manners\nChairman\n\n5 October 2026\n  Portfolio Managers’ Review Question\nHow did the Company perform over the year to 30 June 2026, and how should\nshareholders assess performance over the full period since Fidelity’s\nappointment?\n\n \nAnswer\nThe investment company delivered strong results over the year, generating a\nNAV total return of 92.3% vs the Index which returned 48.2%. It has been\npleasing to see the Company’s enhanced ‘toolkit’ add significant value\nover the period, with positive contributions from the long and short books.\nThe latter contributed c.9% to active return, a notable outcome given the\nstrength of emerging markets over the period. Furthermore, yield enhancement\n(selling options to generate income) and the exposure to smaller companies\nadded value. In addition to robust investment performance, there was an uplift\nto the NAV per share of approximately 4.5% following the repurchase of\nStrathclyde Pension Fund’s holding in Q4 2025.\n\n \n\nOver the full period since Fidelity’s appointment on 4 October 2021, similar\ntrends can be seen – the investment company has generated 14.8% NAV returns\non an annualised basis, outperforming the Index which returned 10.2%,\nsupported by strong stock picking and the portfolio’s enhanced investment\npowers (including short positions, yield enhancement, and the smaller\ncap exposure).\n\n \nQuestion\nWhat were the principal drivers of performance over the year?\n\n \nAnswer\nAt the sector level, Information Technology (IT) was a significant\ncontributor, reflecting both strong stock selection and portfolio positioning\nduring a period when optimism around the beneficiaries of artificial\nintelligence (AI) investment was an important driver of emerging market\nequities. Stock selection in materials and industrials also contributed\npositively, while exposure to financials detracted.\n\n \n\nAt the country level, Taiwan contributed positively through a combination of\nstock selection and positioning, while lower exposure to mainland China also\nadded value, during a period when the market lagged the wider index. Stock\nselection in Korea was another positive contributor. Stock selection in South\nAfrica and exposure to Indonesia were the main detractors.\n\n \n\nAt the stock level, the top contributor overall was the position in\nSK Square, the holding company for Korean memory chip producer SK Hynix,\nwhich rallied on strong earnings expectations and as demand for memory chips\ncontinued to exceed available supply. Taiwan’s Elite Material, a producer of\ncopper clad laminate, a specialist material used in printed circuit boards,\nalso contributed positively, supported by continued AI server-driven demand.\nElsewhere, several gold miners featured among top contributors, including\nSouth African mid-cap Pan African Resources and Brazil’s Aura Minerals,\nunderpinned by strength in gold as strong retail demand and a shift in central\nbank reserves away from US Treasuries lifted prices in the latter half of\n2025.\n\n \n\nKey detractors included Naspers, the South African holding company with a\nstake in China’s Tencent, which declined over concerns that Tencent is\nfalling behind peers in AI, although this position was partly offset by the\nunderweight exposure to Tencent itself. Several positions in financials also\nfeatured among top detractors, including Georgia’s TBC Bank, which suffered\nfrom weakness in the Uzbekistan segment of the business, and Indian SME lender\nFive Star Business Finance, which declined due to concerns over weaker asset\nquality.\n\n \nQuestion\nWhat were the most significant portfolio changes during the year, and what\ndrove those decisions?\n\n \nAnswer\nOver the year, we increased exposure to technology. Here, exposure has been\nfocused on technology hardware companies in Taiwan, such as Wiwynn, designer\nand manufacturer of servers, and memory chip producers in Korea, where strong\ndemand is supporting rapid earnings growth. Notably, exposure was added to\nhigh-conviction names in both markets following the outbreak of the conflict\nin the Middle East in March, when we looked to take advantage of the\nindiscriminate sell-off to build positions at more attractive valuations.\n\n \n\nConversely, whilst we remain positive on the outlook for copper and gold, we\nreduced our overweight to materials over the latter half of the period as we\nlooked to take profits in strong performers. For example, the position in\nSouth African gold miner AngloGold Ashanti was sold to reinvest the proceeds\nin companies with a more attractive balance of potential return and risk.\n\n \n\nWe have also actively adjusted the portfolio’s China exposure over the\nperiod. With weakness in the property sector continuing to weigh on consumer\nconfidence, we exited several consumer holdings, such as sportswear brand Anta\nSports, and reallocated capital to industrial companies in areas such as\nbatteries and power equipment, where innovation is strong and many companies\nare seeing rapid growth in export markets. One example is Sinotruk, a leading\nmanufacturer of heavy-duty trucks with around 26% domestic market share, which\nis experiencing strong export growth in Africa.\n\n \nQuestion\nThe Company has access to a broader investment toolkit than its peers. How did\nthat flexibility help you capture opportunities and manage risk during\nthe year?\n\n \nAnswer\nIt has been a strong year for the short book, which contributed ~9% to\nrelative performance (excluding short index positions) over the period. One\narea in which we have used short positions is the materials sector, where we\nlooked to capitalise on precious metal miners whose valuations had risen\nsharply despite weak operating performance or low-quality mining assets. This\nalso allowed us to manage the portfolio’s overall bet size within precious\nmetals, where the portfolio holds several high conviction long positions.\n\n \n\nThe Company’s additional flexibility also helped us to manage risk during\nthe year. For example, we bought call options (which benefit from share prices\nincreasing) on select oil and gas producers following the outbreak of the\nconflict in the Middle East, which allowed us to react nimbly to a changing\nmarket environment and manage the portfolio’s underweight exposure to oil.\n\n \nQuestion\nFidelity’s global research capability is an important part of the investment\nproposition. Can you give examples of how inputs from Fidelity’s research\nanalysts have helped build conviction?\n\n \nAnswer\nThe breadth and depth of Fidelity’s extensive research platform play a\ncritical role in helping us understand the wide range of emerging market\ncompanies in which we can invest. We can draw on specialist research across\nboth emerging and developed markets, as well as the expertise of our team of\nshorting analysts.\n\n \n\nA key benefit of this platform is the ability to combine detailed emerging\nmarket company research with insights into the developed markets that\ninfluence demand. Within technology, for example, we complement the work of\nour dedicated emerging market analysts with inputs from Fidelity’s US\ntechnology analysts, helping us assess the sustainability of AI investment –\na critical driver of our outlook on emerging market tech companies. The same\ncan be said for our view on key commodities. While our emerging market mining\nanalysts assess the prospects for individual copper producers, for example,\nanalysts covering EV, power grid and technology companies help us build a\nbroader view of long-term copper demand.\n\n \n\nFidelity’s extensive research resource also enables us to uncover smaller\ncompanies ‘off the beaten track’, where limited research coverage from\nbrokers and investment banks can create greater potential for mispricing,\nbroadening the opportunity set. One example is Orizon, a Brazilian waste\nmanagement business which operates in local monopolies with scope to benefit\nas the use of formal landfill services increases.\n\n \nQuestion\nTravelling to meet companies across Emerging Markets is a key part of the\ninvestment process. How have insights gleaned from travel influenced portfolio\npositioning during the year?\n\n \nAnswer\nWe believe there is no substitute for meeting companies at their headquarters,\nwhere we often gain additional insights not only from meeting senior\nmanagement but also from speaking with different division heads or seeing a\ncompany’s assets first-hand. Travel is therefore an important part of our\ninvestment process, and we have made several trips across emerging market\ncountries this year, including to China, Taiwan, Korea and South Africa among\nother markets. Each of these trips has influenced the portfolio in some\nway or another.\n\n \n\nOur trip to South Africa, for example, resulted in a new position in Capitec,\na digital bank with robust earnings growth and scope to further increase\nrevenue from its large, growing user base. Our meeting with the firm’s Head\nof Technology highlighted its continued investment in fraud prevention and the\nstrength of its technology platform. Visiting individual branches also helped\nbuild conviction in Capitec’s branch expansion strategy, with biometric\nverification helping it operate branches more efficiently.\n\nSimilarly, our trip to Taiwan resulted in a new position in Unimicron, the\nworld’s largest manufacturer of ABF substrate, a specialist material used in\nelectronics. Our one-to-one meeting with management gave us greater conviction\nin the AI-driven substrate upcycle, supported by insights into the\ndifferentiated nature of the current growth cycle, driven primarily by AI and\nhigh-performance computing infrastructure, relative to less durable cycles we\nhave seen in the past, which have historically been driven by broad consumer\nelectronics demand.\n\n \nQuestion\nHow have you positioned the portfolio to benefit from the global investment\ncycle in artificial intelligence?\n\n \nAnswer\nAI is one of the key investment themes in the emerging market opportunity set\nat the moment, and we have positioned the portfolio to gain exposure to AI\ninvestment via several direct beneficiaries, including hardware and memory\nchip producers. Within memory chip producers, the portfolio has exposure to\nKorean producers SK Hynix and Samsung Electronics (as well as their holding\ncompanies SK Square and Samsung C&T) – investment in AI and rising use of AI\napplications are driving strong memory chip demand, which continues to outpace\nsupply, whilst barriers to entry remain high. Although today’s exceptionally\nhigh earnings are unlikely to be sustained indefinitely, the decommoditisation\nof memory and the shift towards longer term contracts with pricing floors and\nceilings means the sector is becoming less cyclical than we have seen\nhistorically, with significant visibility over pricing for the\nnext few years.\n\n \n\nThe portfolio also has exposure to Taiwanese hardware companies in the AI\nsupply chain, where there are many high-quality businesses operating in\nmonopolistic market positions and delivering strong revenue growth at more\nattractive valuations than their US peers. One example is Accton, a\nmanufacturer of switches used to direct data traffic between chips in\ndatacentre racks, which benefits from stronger returns on assets and margins\nthan its US-listed counterpart Celestica, but trades at a\nsignificant discount.\n\n \n\nThe portfolio is also well-positioned to benefit as AI adoption broadens\nbeyond the initial infrastructure buildout, with exposure to potential\nbeneficiaries such as Chinese internet platform Tencent, whose broad\ndistribution network should support the rollout of AI tools to customers at\nrelatively low cost. Conversely, we are cognisant of the potential ‘AI\nlosers’ within the market, with scope to benefit from these companies via\nshort positions. For example, the Company is short several Asian IT services\ncompanies, whose business models rely on lower labour costs and could face\ndisruption from AI.\n\n \nQuestion\nIn which countries or sectors do you see the most compelling opportunities\nthat are not yet fully appreciated by the market?\n\n \nAnswer\nThere are several markets which offer significant value in EM. Indonesia is\none example – political uncertainty and the threat of an MSCI Indices\ndowngrade from emerging market to frontier-market status have driven a broad\nfall in valuations, leaving high-quality consumer businesses trading on\nhistorically low valuations. One name we hold is Alfamart, a mid-cap grocery\nretailer operating in a duopoly, with a long runway for growth given\nIndonesia’s low level of formal retail penetration.\n\n \n\nWe also see opportunity in Brazil. Political uncertainty and weak fiscal\ndiscipline have driven a reduction in valuations, leaving attractive stock\npicking opportunities among high-quality, well-managed businesses,\nparticularly within the mid-cap space. With elections in October, the balance\nof potential risk and reward looks attractive, with limited downside given low\nvaluations.\n\n \n\nAt the sector level, there is value to be found in financials, especially in\nsmaller emerging market and frontier markets, which are often too small to\nattract meaningful competition. An example is mid-cap TBC Bank, a\nwell-capitalised Georgian bank operating in a duopoly, which trades on a\nmid-single digit earnings multiple despite consistently attractive levels\nof profitability.\n\n \nQuestion\nWhat has been the most important lesson from the year, and how has it\nstrengthened the portfolio?\n\n \nAnswer\nMarket volatility over the year has reinforced our long-standing conviction in\nthe importance of a disciplined approach to portfolio construction. We assign\na target price to every stock in the portfolio, with the potential return to\nthat target helping us assess risk-reward and inform position sizing, among\nother inputs. This framework guided portfolio decisions throughout the year.\nWe added to high-conviction Korean and Taiwanese technology holdings during\nperiods of indiscriminate weakness, where the potential return to our target\nprices increased, while trimming select materials and technology names after\nstrong performance brought them closer to our assessment of fair value. This\ndiscipline supported portfolio performance, allowing us to use a particularly\nvolatile period opportunistically and ensure capital was continually\nreallocated towards the most attractive ideas.\n\n \n\nWe have also made continued thoughtful use of index hedging to manage overall\nportfolio risk. While the opportunity set among individual stocks remains\nrich, we have been mindful of the residual market, country and sector\nexposures created by our stock selection. As a result, while shareholders may\nsee meaningful gross positions in areas such as technology, index hedges can\nmaterially reduce the portfolio’s effective exposure and associated risk.\nAlongside active profit-taking as positions perform, this means the underlying\nrisk can be lower than headline long-book exposures might suggest.\n\n \nQuestion\nWhy should investors consider allocating to emerging markets today?\n\n \nAnswer\nThere are several fundamental reasons why emerging markets look well-placed\ntoday. Emerging markets sit at the centre of several powerful structural\ntrends: Taiwan and Korea are critical to the global AI hardware supply chain;\nhigh tech Chinese industrial companies are driving innovation in areas such as\nbatteries and power equipment; and the commodity backdrop remains\nconstructive, with higher metal prices supporting commodity exporting\ncountries across Latin America and Africa. The macroeconomic backdrop also\nlooks robust, with many emerging market countries benefitting from stronger\nfiscal positions relative to developed markets. Despite these tailwinds,\nvaluations remain compelling – much of the recent rally in markets has\nreflected higher company earnings expectations rather than rising valuation\nmultiples, leaving the market still trading at approximately a 40% discount to\ndeveloped markets.\n\n \n\nIn addition, the market is highly bifurcated – we have seen valuations\ndecrease in the cheapest markets, such as Brazil and Indonesia, whilst\ntech-heavy markets such as Taiwan have become more expensive. Similarly,\nwhilst many pockets of the market stand to benefit from structural and\ncyclical trends, there are also several more challenged areas, from Asian IT\nservices to Chinese banks. This dispersion creates a fertile ground for stock\npicking, with significant scope to add value through both long and short\npositions.\n\n \n\nThat said, emerging markets are not without their risks, as illustrated by the\nrecent geopolitical tensions in the Middle East. However, with a supportive\nmacroeconomic backdrop and several key drivers supporting earnings growth, we\nthink the case for investing in emerging markets today is particularly\ncompelling.\n\n \n\nNick Price\nChris Tennant\n\nPortfolio Managers\n\n5 October 2026\n  Investment Toolkit\nFidelity Emerging Markets Limited is an all-cap Global Emerging Markets\nstrategy with enhanced investment powers which seeks to exploit a broad range\nof opportunities. As opposed to more traditional long-only funds, the Company\nadopts an active ‘extension’ investment style with the strategy\nbenefitting from an expanded toolset which allows the portfolio managers to\nemploy long and short extensions using derivatives as and when high conviction\nideas are identified:\n\n \n\nEquities: The Company predominantly invests in equity securities that offer a\nsignificant degree of absolute upside from prevailing market prices. The\nportfolio managers will seek opportunities across the market cap spectrum,\ngeographies, and consider listed companies, initial public offerings and\nunlisted investments.\n\n \n\nLong extensions: Derivatives are used to provide additional exposure to stocks\nwith the greatest upside potential and to offset the reduction in equity\nexposure introduced by the Company’s short positions. Most of the long and\nshort derivative exposure is currently achieved through Contracts for\nDifference (“CFDs”).\n\n \n\nShort extensions: Derivatives are used to achieve the economic effect of a\nshort position in a security which the portfolio managers believe is\novervalued. Short positions are implemented on an opportunistic basis for up\nto approximately 30% of total Net Assets under normal market conditions.\n\n \n\nOther instruments: The Portfolio Managers can opportunistically access other\nderivative instruments such as options to enhance the Company’s returns or\nmanage its risk profile. An example of return enhancement would be the sale of\ncall options against holdings in the fund in high volatility environments, to\ncapture the option premium, whilst also providing an efficient exit from the\nposition at a strike price equivalent to the stock’s target price. An\nexample of risk control would be the purchase of appropriate index put options\nin lower volatility environments to protect the Company against negative\nmovements in equity markets, where such portfolio insurance can be purchased\nat an attractively low premium.\n\n \nHow this fits with our investment philosophy\nWe believe that many emerging market companies can sustain high levels of\neconomic growth for years to come, driven by attractive demographic profiles,\nimmature markets, an abundance of untapped natural resources, and generally\nlow levels of indebtedness. However, whilst these positive attributes provide\na fertile environment for companies to grow their earnings, it is critical to\nensure that each company we invest in can generate superior and sustainable\nreturns on assets that permit them to fund the growth of their business,\nwithstand competitive pressures and achieve attractive returns for\nminority shareholders.\n\n \n\nWith this in mind, we define high quality companies as those that exhibit:\n\n· Quality – high quality, well capitalised companies capable of achieving\nsuperior returns on assets, and where strong free cash flow generation can be\nused to either self-fund future growth or pay dividends to shareholders.\n\n· Consistency of returns – dominant companies that can maintain superior\nlevels of growth and profitability resulting from a sustainable competitive\nadvantage, such as market share, technology, or cost leadership; companies\nwhich exhibit a solid track record of delivering attractive total shareholder\nreturns over time.\n\n· Reasonable price – attractive valuations that understate the intrinsic\nvalue of a company. Target prices are determined for every stock considered\nfor the portfolio, reflecting each company’s sustainable level of earnings\npower across the economic cycle and an appropriate valuation multiple.\n\n \n\nConversely, it is those weaker peers who are unable to compete with the\nstrongest franchises that are likely to fall by the wayside. Using short\npositions, these weaker businesses form some of the additional investment\nopportunities that we can take advantage of, as an additional source of\nperformance.\n  Spotlight on Top 10 holdings\nas at 30 June 2026\nBased on Asset Exposure expressed as a percentage of Net Assets. Asset\nExposure comprises the value of direct equity investments plus market exposure\nto derivative instruments.\nTaiwan Semiconductor Manufacturing (TSMC)\n % of Net Assets: 14.9% \n\nTSMC is a leading Taiwanese semiconductor manufacturer. Its advanced\ntechnology and manufacturing capabilities support a strong competitive\nposition and attractive returns on capital.\n\n \nSamsung Electronics\n % of Net Assets: 10.6% \n\nSamsung Electronics is a diversified Korean technology company. It is one of\nthe world’s largest manufacturers of memory chips and also has significant\npresence in mobile phones, displays and consumer electronics.\n\n \nSK Hynix\n % of Net Assets: 7.5% \n\nSK Hynix is a leading Korean manufacturer of memory chips used in computers,\nsmartphones and data centres, with a strong position in the advanced memory\nproducts required for artificial intelligence applications.\n\n \nSK Square\n % of Net Assets: 4.9% \n\nSK Square is a Korean holding company, whose principal investment is a\nsignificant stake in SK Hynix, alongside interests in a range of other digital\nand technology companies.\n\n \nNaspers\n % of Net Assets: 2.9% \n\nNaspers is a South African holding company specialising in internet\ninvestments, including online classifieds, payments and financial technology,\nand food delivery. Its portfolio includes a significant investment in Chinese\ntechnology company Tencent.\n\n \nElite Material\n % of Net Assets: 2.9% \n\nElite Material is a Taiwanese manufacturer of copper clad laminate, a\nspecialist material used to make printed circuit boards. Its products are\nincreasingly used for high performance computing and artificial intelligence\nservers.\n\n \nAdvanced Micro-Fabrication Equipment (AMEC)\n % of Net Assets: 2.9% \n\nAMEC is a Chinese manufacturer of equipment used in the production of\nsemiconductors. The company is positioned to benefit from increased investment\nin domestic semiconductor manufacturing in China.\n\n \nContemporary Amperex Technology (CATL)\n % of Net Assets: 2.8% \n\nCATL is a Chinese manufacturer of batteries for electric vehicles and energy\nstorage systems. Its scale and leading-edge innovation have helped it\nestablish a strong position in the global battery market.\n\n \nOTP Bank\n % of Net Assets: 2.6% \n\nOTP Bank is Hungary’s largest bank and a major banking group across Central\nand Eastern Europe, providing a broad range of retail and corporate banking\nservices.\n\n \nNu Holdings\n % of Net Assets :2.6% \n\nNu Holdings is a Brazilian digital bank offering services including savings,\npayments, credit cards and personal loans. The company has grown its customer\nbase rapidly while establishing a strong record of profitability.\n\n \nForty Largest Holdings\nas at 30 June 2026\nThe Asset Exposures shown below measure exposure to market price movements as\na result of owning shares and derivative instruments. The Fair Value is the\nrealisable value of the portfolio as reported in the Statement of Financial\nPosition. Where the Company holds shares, the Asset Exposure and Fair Value\nwill be the same. For derivative instruments, Asset Exposure is the market\nvalue of the underlying asset to which the Company is exposed, while the Fair\nValue reflects the profit or loss on the contract since it was opened, and is\nbased on how much the share price of the underlying asset has moved.\n\n\n Asset Exposure Fair value \n $’000 % 1 $’000 \n Exposures – shares unless otherwise stated \n Taiwan Semiconductor Manufacturing (shares, options and long CFDs) \n Information Technology 128,777 14.9 113,131 \n Samsung Electronics (shares and long CFDs) \n Information Technology 91,638 10.6 9,790 \n SK Hynix (shares and options) \n Information Technology 64,582 7.5 66,012 \n SK Square \n Industrials 42,702 4.9 42,702 \n Naspers (long CFDs) \n Consumer Discretionary 25,456 2.9 5 \n Elite Material (long CFDs) \n Information Technology 25,187 2.9 1,187 \n Advanced Micro-Fabrication Equipment (shares and long CFDs) \n Information Technology 24,947 2.9 14,977 \n Contemporary Amperex Technology \n Industrials 24,195 2.8 24,195 \n OTP Bank \n Financials 22,221 2.6 22,221 \n Nu Holdings (options and long CFDs) \n Financials 22,029 2.6 1,231 \n TBC Bank Group (long CFDs) \n Financials 21,254 2.5 472 \n Sieyuan Electric \n Industrials 21,131 2.5 21,131 \n Samsung C&T \n Industrials 20,038 2.3 20,038 \n Wiwynn (shares and long CFDs) \n Information Technology 19,911 2.3 5,656 \n Accton Technology (long CFDs) \n Information Technology 19,658 2.3 1,601 \n Lotes (long CFDs) \n Information Technology 19,142 2.2 (482) \n Orizon Valorizacao de Residuos \n Industrials 18,651 2.2 18,651 \n Kaspi.kz (options and long CFDs) \n Financials 18,251 2.1 1,117 \n Torex Gold Resources (long CFDs) \n Materials 17,663 2.0 (307) \n Unimicron Technology \n Information Technology 17,567 2.0 17,567 \n Aura Minerals (shares and long CFDs) \n Materials 17,404 2.0 2,177 \n Tencent Holdings (long CFDs) \n Communication Services 17,198 2.0 40 \n MediaTek \n Information Technology 16,790 2.0 16,790 \n Astor Transformator Enerji Turizm Insaat ve Petrol Sanayi Ticaret \n Industrials 16,728 1.9 16,728 \n Aris Mining (long CFDs) \n Materials 16,574 1.9 (1,158) \n Asia Vital Components (long CFDs) \n Information Technology 16,216 1.9 650 \n Auto Partner \n Consumer Discretionary 14,974 1.7 14,974 \n Guaranty Trust Holding \n Financials 14,096 1.6 14,096 \n Montage Technology (shares and long CFDs) \n Information Technology 13,717 1.6 5,519 \n Banco BTG Pactual \n Financials 13,439 1.6 13,439 \n Itausa \n Financials 12,851 1.5 12,851 \n ASPEED Technology (long CFDs) \n Information Technology 12,408 1.4 (949) \n Techtronic Industries (long CFDs) \n Industrials 12,300 1.4 761 \n Grand Process Technology (long CFDs) \n Information Technology 11,720 1.4 964 \n Grupo Mexico (long CFDs) \n Materials 11,290 1.3 (456) \n First Quantum Minerals (shares and long CFDs) \n Materials 11,282 1.3 1,218 \n ASML Holding (options) \n Information Technology 10,974 1.3 2,674 \n ASE Technology Holding (shares and long CFDs) \n Information Technology 10,651 1.2 2,058 \n Minsur \n Materials 10,648 1.2 10,648 \n Global Standard Technology \n Information Technology 10,119 1.2 10,119 \n Forty largest exposures 936,379 108.4 504,038 \n Other exposures 648,451 75.0 277,977 \n Total exposures before index positions and index hedging 1,584,830 183.4 782,015 \n Add: index positions \n FTSE Taiwan Index (future) 6,954 0.8 67 \n Less: index hedging \n MSCI Emerging Markets Index (future) (205,692) (23.8) 4,182 \n Total exposure after the netting of index positions and index hedging 1,386,092 160.4 786,264 \n Forward currency contracts 188 \n Gross Asset Exposure 2 1,386,092 160.4 \n Portfolio Fair Value 3 786,452 \n Net current assets (excluding derivative assets and liabilities) 77,551 \n Total Net Assets 864,003 \n\n1 Asset Exposure (as defined in the Glossary of Terms) expressed as a\npercentage of Net Assets.\n\n2 Gross Asset Exposure (as defined in the Glossary) comprises market exposure\nto investments of $767,445,000 (per Note 10) plus market exposure to\nderivatives instruments of $618,647,000 (as per Note 11).\n\n3 Portfolio Fair Value comprises investments of $767,445,000 plus derivative\nassets of $41,149,000 less derivative liabilities of $22,142,000. (per the\nStatement of Financial Position).\n\n \nDistribution of the Portfolio\nas at 30 June 2026\n Sector Asset Exposure % 1 Benchmark Index % \n Information Technology 71.3 45.3 \n Industrials 28.3 6.7 \n Materials 27.0 5.4 \n Financials 26.9 18.4 \n Consumer Discretionary 14.2 7.2 \n Consumer Staples 5.9 2.6 \n Communication Services 3.2 6.0 \n Energy 2.3 3.1 \n Health Care 1.5 2.4 \n Real Estate 1.2 1.0 \n Investment Funds 0.9 – \n Utilities 0.7 1.9 \n Others (index positions) 0.8 – \n Total excluding index hedging 184.2 100.0 \n Index hedging (23.8) – \n Total including index hedging 160.4 100.0 \n\n1 Asset Exposure expressed as a percentage of Net Assets.\n\n\n Country Asset Exposure % 1 Benchmark Index % \n Taiwan 44.4 27.3 \n South Korea 34.5 23.7 \n China 22.0 19.0 \n Brazil 12.3 3.8 \n India 9.4 11.1 \n South Africa 7.3 2.9 \n United States of America 7.3 – \n Canada 5.1 – \n Kazakhstan 3.8 – \n Turkiye 3.2 0.4 \n Peru 3.0 0.4 \n Poland 2.9 1.0 \n Mexico 2.9 1.7 \n Indonesia 2.6 0.4 \n Hungary 2.6 0.3 \n Hong Kong 2.5 – \n Georgia 2.5 – \n Colombia 1.9 0.1 \n Nigeria 1.6 – \n Netherlands 1.5 – \n Zambia 1.3 – \n Vietnam 1.3 – \n Panama 1.0 – \n Greece 0.9 0.5 \n Austria 0.9 – \n Thailand 0.8 1.0 \n Ivory Coast 0.6 – \n Cyprus 0.6 – \n Virgin Islands, British 0.5 – \n Argentina 0.5 – \n Germany 0.5 – \n Saudi Arabia 0.4 2.4 \n Chile 0.3 0.4 \n Cameroon 0.2 – \n Congo, the Democratic Republic of the 0.2 – \n Philippines 0.2 0.3 \n Romania 0.2 – \n Australia 0.2 – \n United Kingdom 0.2 – \n Norway 0.1 – \n Russia – – \n Others – 3.3 \n Total excluding index hedging 184.2 100.0 \n Index hedging (23.8) – \n Total including index hedging 160.4 100.0 \n\n1 Asset Exposure expressed as a percentage of Net Assets.\nAttribution Analysis\nas at 30 June 2026\n Ten Highest Contributors to NAV relative return % \n SK Square +7.4 \n Elite Material +6.4 \n Pan African Resources +4.4 \n Sieyuan Electric +2.1 \n Tencent Holdings +2.1 \n Aaura Minerals +2.0 \n Advanced Micro-Fabrication Equipment +2.0 \n Accton Technology +1.8 \n Alibaba Group +1.7 \n Endeavour Mining +1.6 \n \n Ten Highest Detractors from NAV relative return % \n Naspers (6.0) \n Short Position (2.2) \n Five Star Business Finance (2.1) \n TBC Bank Group (1.9) \n Tencent Music Entertainment (1.5) \n Short Position (1.4) \n Full Truck Alliance (1.4) \n Kaspi (1.4) \n APT Medical (1.2) \n Short Position (1.1) \n\nNote: Derivative positions are included in the above investment positions.\n\nSource: Fidelity International.\nFive Year Record\n For the year ended 30 June 2026 2025 2024 2023 2022 \n Investment Performance \n Net asset value per Participating Preference Share total return 1 +92.3% +11.8% +18.7% -2.6% -27.9% \n Share Price total return 1 +99.3% +14.0% +22.6% -5.2% -30.0% \n MSCI Emerging Markets Index total return +48.2% +6.3% +13.2% -2.8% -14.9% \n Assets \n Gross asset exposure ($m) 1 1,386.1 1,235.3 1,177.3 1,185.0 1,120.1 \n Net assets ($m) 864.0 771.6 753.4 796.7 796.8 \n Gross gearing (%) 1 60.4 60.1 56.3 48.7 40.6 \n Net gearing (%) 1 8.8 5.5 4.3 (3.9) (7.6) \n Net asset value per Participating Preference Share ($) 1 21.94 11.99 10.09 8.75 8.75 \n Net asset value per Participating Preference Share (£) 1 16.53 8.75 7.98 6.88 7.20 \n Share Price data at year end \n Share price (£) 15.30 7.83 7.03 5.88 6.34 \n Discount (%) 1 7.4 10.5 11.9 14.6 12.0 \n Earnings and Dividends paid \n Revenue earnings per Participating Preference Share ($) 2 0.32 0.31 0.16 0.22 0.15 \n Capital earnings/(losses) per Participating Preference Share ($) 2 8.23 1.52 1.29 (0.06) (5.11) \n Total earnings/(losses) per Participating Preference Share ($) 2 8.55 1.83 1.45 0.16 (4.96) \n Dividend per Participating Preference Share $0.33 $0.26 $0.20 $0.19 $0.16 \n Ongoing Charges (%) 1 0.87 0.83 0.81 0.81 0.60 \n\n1 Alternative Performance Measures. Please see below and the Glossary of\nTerms in the Annual Report for further details.\n\n2 Calculated based on weighted average number of participating preference\nshares in issue during the year.\n\nSources: JPMorgan and Datastream\n\nPast performance is not a guide to future returns.\n\n \nPRINCIPAL AND EMERGING RISKS AND UNCERTAINTIES, RISK MANAGEMENT\nIn accordance with provisions 33 and 34 of the AIC (Association of Investment\nCompanies) Code, the Board has a robust ongoing process for identifying,\nevaluating and managing the principal risks and uncertainties faced by the\nCompany, including those that could threaten its business model, future\nperformance, solvency or liquidity.\n\n \n\nThe Board will implement the new requirement, under provision 34 of the AIC\nCode applicable for reporting periods from 1 January 2026, of a Board\ndeclaration on the effectiveness of material risk management and internal\ncontrols in the Company’s next reporting year.\n\n \n\nThe Board, with the assistance of the Manager has developed a risk matrix\nwhich, as part of the risk management and internal controls process,\nidentifies the key existing and emerging risks and uncertainties that the\nCompany faces.\n\n \n\nThe Manager also has responsibility for the day-to-day risk management for the\nCompany. It works with the Board to identify and manage the principal and\nemerging risks and uncertainties and to ensure that the Board can continue to\nmeet its UK corporate governance obligations.\n\n \nEmerging Risks\nThe Audit and Risk Committee continues to identify emerging risks and will\ntake any feasible action to mitigate their potential impact. The risks\nidentified are placed on the Company’s risk matrix and graded appropriately.\nThis process, together with the policies and procedures for the mitigation of\nexisting and emerging risks, is updated and reviewed regularly in the form of\ncomprehensive reports reviewed by the Audit and Risk Committee.\n\n \n\nKey emerging issues that the Audit and Risk Committee has identified include:\n\n \n\nClimate Change – Globally, climate change (large scale shift in the\nplanet’s weather patterns and average temperatures) effects are already\nbeing experienced in the form of changing weather patterns. Extreme weather\nevents can potentially impact the operations of investee and potential\ninvestee companies, their supply chains and their customers. Climate change\ncontinues to be an emerging risk. The Board notes that the Manager includes\nESG considerations, including climate change, into the Company’s investment\nprocess.\n\n \n\nThe Board will continue to monitor how this may impact the Company as a risk\nto investment valuations and potentially affect shareholder returns.\n\n \n\nArtificial Intelligence (“AI”) – The Board, together with the Manager,\nis also monitoring the emerging risks posed by the rapid advancement of AI and\nhow it may threaten the Company’s activities and its potential impact on the\nportfolio and investee companies. AI can provide asset managers powerful\ntools, such as enhancing data analysis risk management, trading strategies,\noperational efficiency and client servicing, all of which can lead to better\ninvestment outcomes and more efficient operations. However, with these\nadvances in computing power that will impact society, there are risks from its\nincreasing use and manipulation with the potential to harm, including a\nheightened threat to cybersecurity.\n\n \n\nOther emerging risks may continue to evolve from unforeseen geopolitical and\neconomic events. There are currently several geopolitical factors including\nongoing wars, international trade battles and protectionism that could mean\ngreater stock market risks and heightened macro-economic changes such as\ninflation, interest rates, currency fluctuations, energy costs and an\nincreased regulatory environment.\n\n \n\nThe Board notes that the Manager monitors these issues, and has integrated\nmacro and ESG considerations, including climate change, into the Company’s\ninvestment process. The Board will continue to monitor how this may impact the\nCompany as a risk, the main risk being the impact on investment valuations.\n\n \nPrincipal Risks\nThe Board determines the nature and extent of any risks it is willing to take\nin order to achieve its strategic objectives. The risks listed below are\nconsidered by the Board to be the principal risks and uncertainties faced by\nthe Company.\n\n Principal Risks Description and Impact Mitigation \n 1. Geopolitical Risk Trend(from previous year): Increased Political, socio-economic and cultural events, trends and developments may have an adverse effect on the value of the Company’s investments and the Manager’s ability to The Board has oversight of the portfolio and regularly reviews the impact any material economic or market changes and has comfort that the portfolio is also sufficiently diversified by sector and number of holdings. To manage the risks posed by adverse price fluctuations the Company’s investments are geographically diversified and will continue to be so. Active concentrations (for example by country) are being closely monitored. The exposure to any one company or group (other than an investment company, unit trust or mutual fund) is unlikely to exceed 5% of the Company’s net assets at the time the investment is made. According to the Investment Policy, “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”. \n access markets freely. The Company is exposed to several geopolitical risks. The geopolitical landscape continues to change globally and is largely shaped by the ongoing \n effects of war conflicts, tariff wars, deglobalisation trends and significant supply disruption. The Middle East and Russia are significant net exporters of oil, natural \n gas and a variety of soft commodities and supply limitations have fuelled global inflation and economic instability, specifically within Western nations. Macro economic \n uncertainty continues to impact Western investment appetite. The economies, currencies and financial markets of a number of developing countries in which the Company \n invests may be extremely volatile. Emerging markets are less established, and tend to be more volatile, than developed markets. They are therefore more likely to \n experience risks that in developed markets are associated with unusual market conditions. \n 2. Investment Performance and Gearing Trend (from previous year): Decreased Risk of underperformance for a sustained period by the Portfolio Manager and lack of enough outperformance to offset the longer-term record. The Portfolio Manager may An investment strategy overseen by the Board to optimise returns. The Portfolio Managers are supported by 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. The Board sets a limit on gearing and provides oversight of the Manager’s use of gearing. Under normal market conditions, the Company’s Net Market Exposure is not expected to exceed the NAV by more than 10%, however in all other scenarios the Company’s Net Market Exposure may not exceed the NAV by more than 20% whilst the Company’s Gross Asset Exposure will not exceed the NAV by more than 65%. \n fail to use gearing effectively, resulting in a failure to outperform in a rising market or to underperform in a falling market. \n 3. Competition Risks, Marketplace Threats Impacting Business Growth Trend (from previous year): Increased Risks that external pressures impact the Company’s ability to maintain and grow the business due to the rise of passive vehicles and ETFs, increasing demand for Ongoing review by the Board, Broker and Manager of peer group and industry activity. Annual review of strategy by the Board, and review by the Board of the strategic direction of the Company on an ongoing basis to ensure it offers a relevant product to shareholders. Regular review by the Board of marketing, public relations and sales activity, and the shareholder register. \n integrated digital/wealth solutions, and the gradual transition of an ageing shareholder base. Industry consolidation and structural change continue, driven by cost \n pressures and the need for scale. This trend has been reinforced by heightened shareholder activism, particularly in the UK. \n 4. Changes in Legislation, Taxation or Regulation Trend (from previous year): Stable There is a risk of the Company not complying with the regulatory requirements of the Guernsey Financial Services Commission, UK listing rules, corporate governance The Board monitors tax and regulatory changes at each Board meeting and through active engagement with regulators and trade bodies by the Manager. The Manager regularly attends regular briefings from key industry bodies. Regulatory developments are monitored and managed by Fidelity through active lobbying and negotiations as well as a robust change management process. \n 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 \n to exclusion from trading in particular markets. Investment companies remain in scope of the FCA’s Consumer Composite Investments (CCI) regime, which will replace \n PRIIPs. While this introduces changes to disclosure frameworks, the final rules emphasise flexibility, simplified communication and comparability of key metrics, allowing \n firms to tailor investor communications more effectively and reduce unnecessary complexity. \n 5. Business Continuity & Crisis Management Trend (from previous year): Increased Business process disruption risk from continued threats of cyberattacks, geopolitical events, outages, fire events and natural disasters, resulting in financial and/or Fidelity has Business Continuity and Crisis Management Frameworks in place to deal with business disruption and assure operational resilience. All third-party service providers are subject to a risk-based programme of oversight by the Manager. Third-party service provider internal controls reports are received on an annual basis, and any concerns are investigated. \n reputational impact to the Company affecting the functioning of the business. In addition to the Manager, the Company relies on other third-party service providers, \n principally the Registrar, Custodian and Depositary who may be subject to business continuity and crisis management issues. \n 6. Operational Risk Trend (from previous year) : Stable Financial losses or reputational damage from inadequate or failed internal processes, people and systems or from external parties and events. Fidelity’s Operational Risk Management Framework is designed to pro-actively prevent, identify and manage operational risks inherent in most activities. Fidelity uses robust systems and procedures dedicated to its operational processes. Its risk management structure is designed according to the FCA’s three lines of defence model. \n 7. Cybercrime and Information Security Risks Trend (from previous year): Increased Cybersecurity risk increased use of artificial intelligence (AI) and cyberattacks or threats to the functioning of global markets and to the Manager’s own business model, The risk is monitored by the Board with the help of the Manager’s global cybersecurity team and their extensive Strategic Cyber and Information Security programme and assurances from outsourced suppliers. The Manager has established a comprehensive framework of information security policies and standards which provide a structured approach to identify, prevent, and respond to information security threats. The framework ensures consistency in Fidelity’s security measures, enhances its ability to adapt to evolving/emerging threats, and compliance with changing regulatory requirements. The Company’s other service providers also have cybersecurity measures in place. Key performance indicators and metrics have been developed by the Manager to monitor the overall efficacy of cybersecurity processes and controls and to further enhance the Manager’s cybersecurity strategy and operational resilience. \n including its and the Company’s outsourced suppliers. The external threat environment has intensified, driven by AI enhanced ransomware, identity centric attacks, rapidly \n expanding supply chain compromise vectors, and rising nation state activity. \n 8. Level of Discount to Net Asset Value (“NAV”) Trend (from previous year): Stable The risk that the share price performance lags NAV performance. A discount in the price at which the Company’s shares trade to NAV would mean that shareholders would be The Board reviews the investment strategy, investment performance and the marketing approach, given the influence of all these factors on the discount. Due to the nature of investment companies, the price of the Company’s shares and its discount to NAV are factors which are not completely within the Company’s control. The Company’s share price, NAV and discount volatility are monitored daily by the Manager and the Company’s Broker and considered by the Board on a regular basis. The demand for shares can be influenced through good performance and an active investor relations programme. Discretionary repurchases of ordinary shares are made within guidelines set by the Board considering prevailing market conditions. \n unable to realise the true underlying value of their investment. In considering the risk that the discount to NAV poses to shareholder value and returns, both the \n absolute level of the discount and the amount relative to the Company’s peer group and the wider market are considered. \n 9. Key Person Risk Trend (from previous year): Stable Loss of a Portfolio Manager or other key individuals could lead to potential performance and/or operational issues. There is also a risk that the Manager has inadequate Fidelity has successions plans in place for Portfolio Managers with a designated PM and a Co-PM identified for the Company. Depth of the team within Fidelity. Experience of the analysts covering the Company’s investments. \n succession plans for other key operational individuals. \n 10. Lack of Market Liquidity Risk Trend (from previous year): Stable Trading volumes on the stock exchanges of developing countries can be substantially lower than in the leading stock markets of the developed world and trading may even be The Company is required to disclose its own Liquidity Risk Policy in the Annual Report. At a Fidelity corporate level, the Manager as the AIFM manages liquidity for each fund in accordance with the Fund Investment Risk Policy, which incorporates Fund Liquidity Risk Management Framework. The restrictions on concentration and the diversification requirements protect the overall value of the Company from the risks created by the lower level of liquidity in the markets in which the Company operate. \n temporarily suspended during certain periods. Liquidity can also be negatively impacted by temporary capital controls in certain markets. A lower level of liquidity can \n exaggerate the fluctuations in the value of investments. Country allocations may add liquidity challenges. Whilst country active exposures are a residual of stock picking \n approach used by the Portfolio Manager; country risk is heightened amid elevated geopolitical uncertainties which may impact liquidity risk profile of the Company. \n\n \n\nOther risks facing the Company include:\nTax and Regulatory Risks\nThere is a risk of the Company not complying with the regulatory requirements\nof the Guernsey Financial Services Commission, UK listing rules, corporate\ngovernance requirements or local tax requirements that could result in loss of\nstatus as an Authorised Closed Ended Investment Scheme, becoming subject to\nadditional tax charges or to the exclusion from trading in\nparticular markets.\n\n \n\nThe Board monitors tax and regulatory changes at each Board meeting and\nthrough active engagement with regulators and trade bodies by the Manager.\n\n \nViability statement\nIn accordance with the AIC Code of Corporate Governance the Directors have\nassessed the prospects of the Company over a longer period than the twelve\nmonth period required by the “Going Concern” basis. The Company is an\ninvestment company with the objective of achieving long-term capital growth\nfrom an actively managed portfolio made up primarily of securities and\nfinancial instruments providing exposure to emerging market companies, both\nlisted and unlisted. The Board considers long-term to be at least five years,\nand accordingly, the Directors believe that five years is an appropriate\ninvestment horizon to assess the viability of the Company, although the life\nof the Company is not intended to be limited to this or any other period. In\nmaking an assessment on the viability of the Company, the Board has considered\nthe following:\n\n· The ongoing relevance of the investment objective in prevailing market\nconditions;\n\n· The Company’s NAV and share price performance;\n\n· The principal and emerging risks and uncertainties facing the Company as\nset out above and their potential impact;\n\n· The future demand for the Company’s shares;\n\n· The Company’s share price discount to its NAV;\n\n· The liquidity of the Company’s portfolio;\n\n· Consideration of the continuation vote at the next AGM;\n\n· The level of income generated by the Company; and\n\n· Future income and expenditure forecasts.\n\n \n\nThe Company has assumed for the purposes of the viability statement that the\ncontinuation vote in 2026 would be passed. This assumption is based on the\nCompany’s performance to 30 June 2026 (in absolute terms and versus the\nbenchmark), the level of discount and informal conversations with\nshareholders. Formal feedback from shareholders on the continuation vote has\nbeen sought as part of the preparation of the 2026 financial statements. The\nDirectors have not been informed by any shareholder that they will vote\nagainst continuation.\n\nThe Company’s performance for the five year reporting period to 30 June 2026\noutperformed the Benchmark Index, with a NAV total return of +79.2%, and a\nshare price total return of +84.9% compared to the Benchmark Index total\nreturn of +47.5%.\n\n \n\nThe Board regularly reviews the investment policy and considers whether it\nremains appropriate. The Board has concluded that there is a reasonable\nexpectation that the Company will be able to continue in operation and meet\nits liabilities as they fall due over the next five years based on the\nfollowing considerations:\n\n· The Investment Manager’s compliance with the Company’s investment\nobjective and policy, its investment strategy and asset allocation;\n\n· The fact that the portfolio comprises sufficient readily realisable\nsecurities which can be sold to meet funding requirements if necessary; and\n\n· The ongoing processes for monitoring operating costs and income which are\nconsidered to be reasonable in comparison to the Company’s total assets.\n\n \n\nWhen considering the risk of under-performance, a series of stress tests were\ncarried out including in particular the effects of any substantial future\nfalls in investment value on the ability to maintain dividend payments and\nrepay obligations as and when they arise.\n\n \n\nIn preparing the Financial Statements, the Board has considered the impact of\nregulatory changes and significant market events and how this may affect the\nCompany. In addition, the Directors’ assessment of the Company’s ability\nto operate in the foreseeable future is included in the Going Concern\nStatement which is included in the Directors’ Report.\n\n \nPromoting the Success of the Company\nThe Company is not required to comply with the provisions of the UK Companies\nAct 2006, but it is a requirement of the AIC Code of Corporate Governance to\nreport upon Section 172 of this statute irrespective of domicile.\nSection 172 recognises that Directors of a company must act in a way they\nconsider, in good faith, would be most likely to promote the success of the\nCompany for the benefit of its members as a whole, and in doing so have regard\n(amongst other matters) to the likely consequences of any decision in the\nlong-term; the need to foster relationships with the Company’s suppliers,\ncustomers and others; the impact of the Company’s operations on the\ncommunity and the environment; the desirability of the Company maintaining a\nreputation for high standards of business conduct; and the need to act fairly\nas between members of the Company.\n\n \n\nAs an externally managed Investment Company, the Company has no employees or\nphysical assets, and a number of the Company’s functions are outsourced to\nthird parties. The key outsourced function is the provision of investment\nmanagement services by the Manager, but other professional service providers\nsupport the Company by providing administration, custodian, banking and audit\nservices. The Board considers the Company’s key stakeholders to be the\nexisting and potential shareholders, the external appointed Manager and other\nthird-party professional service providers. The Board considers that the\ninterest of these stakeholders is aligned with the Company’s objective of\ndelivering long-term capital growth to investors, in line with the Company’s\nstated objective and strategy, while providing the highest standards of legal,\nregulatory and commercial conduct.\n\n \n\nThe Board, with the Portfolio Manager, sets the overall investment strategy\nand reviews this regularly. In order to ensure good governance of the Company,\nthe Board has set various limits on the investments in the portfolio, whether\nin the maximum size of individual holdings, the use of derivatives, the level\nof gearing and others. These limits and guidelines are regularly monitored and\nreviewed and are set out in the Annual Report.\n\n \n\nThe Board places great importance on communication with shareholders and is\ncommitted to listening to their views. The primary medium through which the\nCompany communicates with shareholders is through its Annual and Half Year\nFinancial Reports. Monthly factsheets are also produced. Company related\nannouncements are released via a regulatory information service (‘RNS’) to\nthe London Stock Exchange. All of the aforementioned information is available\non the Company’s website www.fidelity.co.uk/emergingmarkets. Shareholders\nmay also communicate with Board members at any time by writing to the Company\nSecretary at FIL Investments International, Beech Gate, Millfield Lane,\nTadworth, Surrey KT20 6RP or by email at investmenttrusts@fil.com. The\nPortfolio Managers meet with major shareholders, potential investors, stock\nmarket analysts, journalists and other commentators throughout the year. These\ncommunication opportunities help inform the Board in considering how best to\npromote the success of the Company over the long-term.\n\n \n\nThe Board seeks to engage with the Manager and other service providers and\nadvisers in a constructive and collaborative way, promoting a culture of\nstrong governance, while encouraging open and constructive debate, in order to\nensure appropriate and regular challenge and evaluation. This aims to enhance\nservice levels and strengthen relationships with service providers, with a\nview to ensuring shareholders’ interests are best served, by maintaining the\nhighest standards of commercial conduct while keeping cost levels competitive.\n\n \n\nWhilst the Company’s direct operations are limited, the Board recognises the\nimportance of considering the impact of the Company’s investment strategy on\nthe wider community and environment. The Board believes that a proper\nconsideration of ESG issues aligns with the Company’s investment objective\nto deliver long-term growth in both capital and income, and the Board’s\nreview of the Manager includes an assessment of their ESG approach.\n\n \n\nIn addition to ensuring that the Company’s investment objective was being\npursued, key decisions and actions taken by the Directors during the reporting\nyear, and up to the date of this report, have included:\n\n· Marketing & PR\n\n The Board has continued to be proactive in its efforts to promote the\nsuccess of the Company. It has worked closely with the Manager, utilising the\nManager’s extensive marketing capabilities, in combination with the\nCompany’s appointed stockbrokers, and public relations firm to continue to\nexecute a comprehensive promotional programme for the Company.\n\n· Discount Control – Share Buybacks\n\n The Company continued a share buyback programme to address the discount to\nNAV at which the Company’s shares trade.\n\n· Dividend\n\n The decision to recommend a dividend of $0.33 per Participating Preference\nShare in respect of the year ended 30 June 2026 (2025: $0.26).\n\n \nGoing Concern\nThe Financial Statements of the Company have been prepared on a going concern\nbasis.\n\n \n\nThe Directors have considered the Company’s investment objective, risk\nmanagement policies, liquidity risk, credit risk, capital management policies\nand procedures, the nature of its portfolio and its expenditure and cash flow\nprojections.\n\n \n\nThe Directors, having considered the liquidity of the Company’s portfolio of\ninvestments (being mainly securities which are readily realisable) stress\ntesting performed and the projected income and expenditure, are satisfied that\nthe Company is financially sound and has adequate resources to meet all of its\nliabilities and ongoing expenses and continue in operational existence for the\nforeseeable future. The Board has therefore concluded that the Company has\nadequate resources to continue to adopt the going concern basis for the period\nto 31 October 2027 which is at least twelve months from the date of approval\nof the Financial Statements.\n\n \n\nThe Company, in accordance with the provisions of its Articles of\nIncorporation, is subject to a continuation vote by shareholders at the Annual\nGeneral Meeting to be held on 1 December 2026. At this stage, the Directors\nbelieve that it is likely shareholders will vote in favour of continuation. As\nhighlighted in the Chairman’s statement, this conclusion is based on the\nCompany’s NAV total return performance beating the Index by +44.1 percentage\npoints this year and by 5.5 percentage points in both of the two preceding\nyears. The share price outperformance versus the Index was 51.3 percentage\npoints in year under review and share price outperformed the Index by 7.7 and\n9.4 percentage points in the two preceding years. The Board is encouraged by\nthe growing interest in emerging markets as an asset class, the relative level\nof the Company’s discount versus peers remains good, and the excellent\nperformance of the Fidelity emerging market open ended fund which replicates\nthe closed end fund, and has a longer track record, with the same portfolio\nmanagement team is strong. There is a continuation vote scheduled to take\nplace at the AGM, there are no indications from shareholders that they will\nvote against the continuation of the Company. The Directors have concluded\nthat despite the continuation vote the preparation of the Financial Statements\non a going concern basis remains appropriate.\n\n \n\nThe prospects of the Company over a period longer than twelve months can be\nfound in the Viability Statement.\n  Statement of Comprehensive Income\nfor the year ended 30 June 2026\n Year ended 30 June 2026 Year ended 30 June 2025 \n Note Revenue $’000 Capital $’000 Total $’000 Revenue $’000 Capital $’000 Total $’000 \n Revenue \n Investment income 3 18,866 – 18,866 22,941 – 22,941 \n Derivative income 3 25,347 – 25,347 26,855 – 26,855 \n Other income 3 963 – 963 631 – 631 \n Total income 45,176 – 45,176 50,427 – 50,427 \n Net gains on investments at fair value through profit or loss 10 – 381,517 381,517 – 80,979 80,979 \n Net gains on derivative instruments 11 – 41,644 41,644 – 32,226 32,226 \n Net foreign exchange losses – (3,242) (3,242) – (1,475) (1,475) \n Total income and gains 45,176 419,919 465,095 50,427 111,730 162,157 \n Expenses \n Investment management fees 4 (934) (3,734) (4,668) (863) (3,451) (4,314) \n Other expenses 5 (2,206) – (2,206) (1,644) – (1,644) \n Profit before finance costs and taxation 42,036 416,185 458,221 47,920 108,279 156,199 \n Finance costs 6 (23,523) – (23,523) (23,704) – (23,704) \n Profit before taxation 18,513 416,185 434,698 24,216 108,279 132,495 \n Taxation 7 (2,110) (785) (2,895) (2,347) (3,162) (5,509) \n Profit after taxation for the year 16,403 415,400 431,803 21,869 105,117 126,986 \n Basic and diluted earnings per Participating Preference Share 8 $0.32 $8.23 $8.55 $0.31 $1.52 $1.83 \n\n\nThe Company does not have any income or expenses that are not included in the\nprofit after taxation for the year. Accordingly the profit after taxation for\nthe year is also the total comprehensive income for the year and no separate\nStatement of Comprehensive Income has been presented.\n\n \n\nThe total column of this statement represents the Company’s Statement of\nComprehensive Income prepared in accordance with IFRS. The supplementary\ninformation on the allocation between the revenue account and the capital\nreserve is presented under guidance published by the AIC.\n\n \n\nAll the profit and total comprehensive income is attributable to the equity\nshareholders of the Company. There are no minority interests.\n\n \n\nNo operations were acquired or discontinued in the year and all items in the\nabove statement derive from continuing operations.\n  Statement of Changes in Equity\nfor the year ended 30 June 2026\n Note Share premium account $’000 Capital reserve $’000 Revenue reserve $’000 Total equity $’000 \n Total equity at 30 June 2025 6,291 706,238 59,099 771,628 \n Profit after taxation for the year – 415,400 16,403 431,803 \n Participating Preference Shares repurchased and cancelled 14 – (132,253) – (132,253) \n Participating Preference Shares repurchased and cancelled for Strathclyde Pension Fund 14 – (193,927) – (193,927) \n Buyback expenses 15 – (910) – (910) \n Dividend paid to shareholders 9 – – (12,338) (12,338) \n Total equity at 30 June 2026 6,291 794,548 63,164 864,003 \n\n \n\n Note Share premium account $’000 Capital reserve $’000 Revenue reserve $’000 Total equity $’000 \n Total equity at 30 June 2024 6,291 695,822 51,333 753,446 \n Profit after taxation for the year – 105,117 21,869 126,986 \n Participating Preference Shares repurchased into Treasury 14 – (94,701) – (94,701) \n Dividend paid to shareholders 9 – – (14,103) (14,103) \n Total equity at 30 June 2025 6,291 706,238 59,099 771,628 \n\n \nStatement of Financial Position\nas at 30 June 2026\n Note 30 June 2026 $’000 30 June 2025 $’000 \n Non-current assets \n Investments at fair value through profit or loss 10 767,445 712,861 \n Current assets \n Derivative assets 11 41,149 15,006 \n Amounts held at futures clearing houses and brokers 42,884 52,521 \n Other receivables 12 14,333 9,504 \n Cash and cash equivalents 32,829 9,551 \n 131,195 86,582 \n Current liabilities \n Derivative liabilities 11 22,142 15,784 \n Other payables 13 12,488 12,031 \n Bank overdraft 7 – \n 34,637 27,815 \n Net current assets 96,558 58,767 \n Net assets 864,003 771,628 \n Equity \n Share premium account 15 6,291 6,291 \n Capital reserve 15 794,548 706,238 \n Revenue reserve 15 63,164 59,099 \n Total equity 864,003 771,628 \n \n Net asset value per Participating Preference Share 16 $21.94 $11.99 \n\n\nThe Financial Statements were approved by the Board of Directors of the\nCompany on 5 October 2026 and signed on its behalf by:\n\n \n\nHeather Manners\nChairman\nStatement of Cash Flows\nfor the year ended 30 June 2026\n 30 June 2026 $’000 30 June 2025 $’000 \n Operating activities \n Cash inflow from dividend income from investments 20,364 21,955 \n Cash inflow from interest income from investments, cash and collateral balances 963 633 \n Cash inflow from dividend income from derivatives 11,625 14,390 \n Cash inflow from interest income from derivatives 667 1,166 \n Cash outflow from taxation paid (6,317) (4,407) \n Cash outflow from the purchase of investments (922,863) (746,980) \n Cash inflow from the sale of investments 1,242,768 804,105 \n Cash inflow from net proceeds from settlement of derivatives 38,025 57,520 \n Cash inflow/(outflow) from amounts held at futures clearing houses and brokers 9,637 (7,569) \n Cash outflow from operating expenses (6,608) (6,262) \n Net cash inflow from operating activities 388,261 134,551 \n Financing activities \n Cash outflow from CFD interest paid (21,129) (19,611) \n Cash outflow from short CFD dividends paid (2,463) (3,011) \n Cash outflow from dividends paid to shareholders (12,338) (14,103) \n Cash outflow from the repurchase of Participating Preference Shares into Treasury (1,048) (95,594) \n Cash outflow from the repurchase and cancellation of Participating Preference Shares (323,860) – \n Cash outflow from cancellation buyback expenses (910) – \n Net cash outflow from financing activities (361,748) (132,319) \n Net increase in cash and cash equivalents 26,513 2,232 \n Cash and cash equivalents at the start of the year 9,551 8,794 \n Effect of foreign exchange movements (3,242) (1,475) \n Cash and cash equivalents at the end of the year 32,822 9,551 \n Represented by: \n Cash at bank 15,121 9,551 \n Amount held in Fidelity Institutional Liquidity Fund 17,708 – \n Bank overdraft (7) – \n 32,822 9,551 \n\n \nNotes to the Financial Statements 1. Principal Activity\nFidelity Emerging Markets Limited (the ‘Company’) was incorporated in\nGuernsey on 7 June 1989 and commenced activities on 19 September 1989. The\nCompany is an Authorised Closed-Ended Investment Scheme as defined by The\nAuthorised Closed-Ended Investment Schemes Rules and Guidance, 2021 (and, as\nsuch, is subject to ongoing supervision by the Guernsey Financial Services\nCommission). The Company is listed on the London Stock Exchange and is a\nconstituent of the FTSE 250 Index.\n\n \n\nThe Company’s registered office is at Level 3, Mill Court La Charroterie, St\nPeter Port, Guernsey GY1 1EJ, Channel Islands.\n\n \n\nThe Company’s investment objective is to achieve long-term capital growth\nfrom an actively managed portfolio made up primarily of securities and\nfinancial instruments providing exposure to emerging market companies, both\nlisted and unlisted.\n\n \n\nThese financial statements were approved by the Board of Directors and\nauthorised for issue on 5 October 2026.\n\n \n2. Accounting policies\n(a) Basis of preparation\nThe principal accounting policies applied in the preparation of these\nfinancial statements on a going concern basis are set out below. These\npolicies have been consistently applied to all years presented, unless\notherwise stated. The Company’s financial statements, which give a true and\nfair view of the assets, liabilities, financial position and profit and loss\nof the Company, have been prepared in accordance with International Financial\nReporting Standards as adopted by the European Union (‘IFRS’), which\ncomprise standards and interpretations approved by the International\nAccounting Standards Board (‘IASB’), the IFRS Interpretations Committee\nand interpretations approved by the International Accounting Standards\nCommittee (‘IASC’) that remain in effect and the Companies (Guernsey) Law,\n2008. The financial statements have been prepared under the historical cost\nconvention, as modified by the revaluation of financial assets and financial\nliabilities at fair value through profit or loss.\n\n \nGoing concern\nThe Directors have a reasonable expectation that the Company has adequate\nresources to continue in operational existence for at least twelve months from\nthe date of approval of these Financial Statements. In making their assessment\nthe Directors have reviewed the income and expense projections, the liquidity\nof the investment portfolio, stress testing performed and considered the\nCompany’s ability to meet liabilities as they fall due. The Directors have\nalso considered the continuation vote to be held at the Annual General Meeting\non 1 December 2026 and expect that the resolution will be passed. This\nassumption is based on the Company’s performance to 30 June 2026 (in\nabsolute terms and versus the benchmark), the level of discount and informal\nconversations with shareholders. Accordingly, the Directors consider it\nappropriate to adopt the going concern basis of accounting in preparing these\nFinancial Statements. The Financial Statements do not include any adjustments\nthat would arise if the continuation resolution is not passed and such\nadjustments may be material.\n\n \nSignificant accounting estimates, assumptions and judgements\nThe preparation of financial statements in conformity with IFRS may require\nmanagement to make critical accounting judgements, estimates and assumptions\nthat affect the application of policies and the reported amounts of assets and\nliabilities, income and expense. Actual results may differ from the estimates.\n\n \n\nValuations use observable data to the extent practicable. Changes in any\nassumptions could affect the reported fair value of the financial instruments.\nThe determination of what constitutes observable requires significant\njudgement by the Company. The Company considers observable data to be market\ndata that is readily available, regularly distributed or updated, reliable and\nverifiable, not proprietary, and provided by independent sources that are\nactively involved in the relevant market.\n\n \nDetermination of fair value of unlisted investments\nThe key estimate in the Financial Statements is the determination of the fair\nvalue of unlisted investments. This process is overseen by the Manager’s\nFair Value Committee (“FVC”), supported by an external valuer and\nFidelity’s unlisted investments specialist, and is subject to detailed\nreview and appropriate challenge by the Directors. The valuation of unlisted\ninvestments significantly impacts the financial statements at the Statement of\nFinancial Position date. The valuation approach for the fund’s unlisted\ninvestments is as follows:\n\n· Investee Funds: These investments are primarily valued based on the\nofficial valuation statements from the Investee Funds.\n\n· Russian securities: Due to the current market conditions and restrictions,\nthese securities are valued at nil, reflecting their impaired status and lack\nof marketability.\n\nAdoption of new and revised International Accounting Standards – the\naccounting policies adopted are consistent with those of the previous\nfinancial year.\n\n \n\nAt the date of authorisation of these Financial Statements, the following new\nand amended IFRS Accounting Standards, as adopted by the European Union, were\nin issue but not yet effective:\n\n(i) Amendments to the Classification and Measurement of Financial Instruments\n– Amendments to IFRS 9 and IFRS 7 (effective for annual periods beginning on\nor after 1 January 2026).\n\n The International Accounting Standards Board (IASB) issued targeted\namendments to IFRS 9 and IFRS 7 to respond to recent questions arising in\npractice, and to include new requirements not only for financial institutions\nbut also for corporate entities. Among other amendments, the IASB clarified\nthe date of recognition and derecognition of some financial assets and\nliabilities, with a new exception for some financial liabilities settled\nthrough an electronic cash transfer system.\n\n(ii) IFRS 18 Presentation and Disclosure in Financial Statements (effective\nfor annual periods beginning on or after 1 January 2027).\n\n \n\nThe IASB issued the new standard on presentation and disclosure in financial\nstatements, which replaces IAS 1, with a focus on updates to the statement of\ncomprehensive income.\n\n \n\nThe key new concepts introduced in IFRS 18 relate to:\n\n· the structure of the statement of comprehensive income with defined\nsubtotals;\n\n· the requirement to determine the most useful structured summary for\npresenting expenses in the statement of comprehensive income;\n\n· required disclosures in a single note within the financial statements for\ncertain profit or loss performance measures that are reported outside an\nentity’s financial statements (that is, management-defined performance\nmeasures); and\n\n· enhanced principles on aggregation and disaggregation which apply to the\nprimary financial statements and notes in general.\n\n \n\nThe Company is currently still assessing the effect of the forthcoming\nstandard and amendments.\n\n \n\nNo other new standards or amendments to standards are expected to have a\nmaterial effect on the financial statements of the Company.\n\n \n(b) Financial Instruments\nClassification\n(i) Assets\nThe Company classifies its investments based on both the Company’s business\nmodel for managing those financial assets and the contractual cash flow\ncharacteristics of the financial assets. The portfolio of financial assets is\nmanaged and performance is evaluated on a fair value basis. The Company is\nprimarily focused on fair value information and uses that information to\nassess the assets’ performance and to make decisions. The Company has not\ntaken the option to irrevocably designate any equity securities as fair value\nthrough other comprehensive income. All investments are measured at fair value\nthrough profit or loss. The Company’s investments are included in the\nFinancial assets at fair value through profit and loss line in the Statement\nof Financial Position.\n\n \n(ii) Liabilities\nDerivative contracts that have a negative fair value are presented as\nderivative financial liabilities at fair value through profit or loss. As\nsuch, the Company classifies all of its investment portfolio as financial\nassets or liabilities at fair value through profit or loss. The Company’s\npolicy requires the Manager and the Board of Directors to evaluate the\ninformation about these financial assets and liabilities on a fair value basis\ntogether with other related financial information.\n\n \nRecognition/derecognition\nThe Company recognises a financial asset or a financial liability when, and\nonly when, it becomes a party to the contractual provisions of the instrument.\n\n \n\nPurchases and sales of investments are recognised on their trade date, the\ndate on which the Company commits to purchase or sell the investment.\nInvestments are derecognised when the rights to cash flows from the\ninvestments have expired or the Company has transferred substantially all\nrisks and rewards of ownership. The Company derecognises a financial liability\nwhen the obligation under the liability is discharged, cancelled or expires.\n\n \nMeasurement\nFinancial assets at fair value through profit and loss are measured initially\nat fair value being the transaction price. Transaction costs incurred to\nacquire financial assets at fair value through profit or loss are expensed in\nthe Statement of Comprehensive Income. Transaction costs include fees and\ncommissions paid to agents, advisers, brokers and dealers. Subsequent to\ninitial recognition, all financial assets at fair value through profit or loss\nare measured at fair value. Gains and losses arising from changes in the fair\nvalue of the ‘financial assets at fair value through profit or loss’\ncategory are presented in the Statement of Comprehensive Income in the year in\nwhich they arise.\n\n \n\nThe Company includes transaction costs, incidental to the purchase or sale of\ninvestments within Net gains/(losses) on financial assets at fair value\nthrough profit or loss in the capital column of the Statement of Comprehensive\nIncome and has disclosed them in Note 10 below.\n\n \n\nFair value is the price that would be received to sell an asset or paid to\ntransfer a liability in an orderly transaction between market participants at\nthe measurement date.\n\n \n\nSecurities listed on active markets are valued based on their last bid price\nfor valuation and financial statement purposes.\n\n \n\nEquity Linked Notes are valued based on the available price of the underlying\nasset as at reporting date.\n\n \n\nIn the normal course of business, the Company may utilise Participatory notes\n(‘P Notes’) to gain access to markets that otherwise would not be\nallowable as a foreign investor. P Notes are issued by banks or broker-dealers\nand allow the Company to gain exposure to local shares in foreign markets.\nThey are valued based on the last price of the underlying equity at the\nvaluation date.\n\n \n\nThe Company’s investment in other funds (‘Investee Funds’) are subject\nto the terms and conditions of the respective Investee Fund’s offering\ndocumentation. The investments in Investee Funds are primarily valued based on\nthe latest available redemption price for such units in each Investee Fund, as\ndetermined by the Investee Funds’ administrators. The Company reviews the\ndetails of the reported information obtained for the Investee Funds and\nconsiders the liquidity of the Investee Fund or its underlying investments,\nthe value date of the net asset value provided, any restrictions on\nredemptions and the basis of the Investee Funds’ accounting. If necessary,\nthe Company makes adjustments to the net asset value of the Investee Funds to\nobtain the best estimate of fair value.\n\n \n\nThe Company may make adjustments to the value of a security if it has been\nmaterially affected by events occurring before the Company’s NAV calculation\nbut after the close of the primary markets on which the security is traded.\nThe Company may also make adjustment to the value of its investments if\nreliable market quotations are unavailable due to infrequent trading or if\ntrading in a particular security was halted during the day and did not resume\nprior to the Company’s NAV calculation.\n\n \n\nIn preparing these financial statements the Directors have considered the\nimpact of climate change risk as a principal and as an emerging risk as set\nout below, and have concluded that there was no further impact of climate\nchange to be taken into account as the investments are valued based on market\npricing. In line with IFRS 13 – ”Fair Value Measurement” investments are\nvalued at fair value, which for the Company are quoted bid prices for\ninvestments in active markets at the statement of financial position date.\nInvestments which are unlisted are priced using market-based valuation\napproaches. All investments therefore reflect the market participants view of\nclimate change risk on the investments held by the Company.\n\n \nDerivative Instruments\nWhen appropriate, permitted transactions in derivative instruments are used.\nDerivative transactions into which the Company may enter include long and\nshort contracts for difference (“CFDs”), futures and options.\n\n \n\nUnder IFRS 9 derivatives are classified at fair value through profit or loss\n– held for trading, and are initially accounted and measured at fair value\non the date the derivative contract is entered into and subsequently measured\nat fair value as follows:\n\n· Long and short CFDs – the difference between the strike price and the\nvalue of the underlying shares in the contract based on exchange traded prices\nin an active market;\n\n· Futures contracts – the difference between the contract price and the\nquoted traded price in an active market;\n\n· Exchange traded options – valued based on similar instruments or the\nquoted traded price in an active market for the contract; and\n\n· Forward currency contracts – valued at the appropriate quoted forward\nforeign exchange rate ruling at the Statement of Financial Position date;\n\n· Over the counter options – valued based on indicative quotes received\nfrom independent third party vendors.\n\n \n\nWhere transactions are used to protect or enhance income, if the circumstances\nsupport this, the income and expenses derived are included in derivative\nincome in the revenue column of the Statement of Comprehensive Income. Where\nsuch transactions are used to protect or enhance capital, if the circumstances\nsupport this, the income and expenses derived are included in gains/(losses)\non derivative instruments in the capital column of the Statement of\nComprehensive Income. Any positions on such transactions open at the reporting\ndate are reflected on the Statement of Financial Position at their fair value\nwithin current assets or current liabilities.\n\n \nAmortised cost measurement\nCash at bank, amounts held at futures clearing houses and brokers and other\nreceivables are carried at amortised cost using the effective interest method\nless any allowance for impairment. Gains and losses are recognised in profit\nor loss when the receivables are derecognised or impaired, as well as through\nthe amortisation process.\n\n \n\nCapital gains tax payable and other payables are measured at amortised cost\nusing the effective interest method. Gains and losses are recognised in profit\nor loss when the liabilities are derecognised, as well as through the\namortisation of these liabilities.\n\n \n(c) Foreign Currency Translation\nFunctional and Presentation Currency\nThe Company maintains its books and records in the currency of its primary\neconomic environment, known as its functional currency. The Directors have\ncarefully assessed this environment by considering several factors, including\nthe currency in which the original capital was raised, the currency used for\npast distributions, and the currency in which capital would be returned in the\nevent of a breakup. The Directors have considered the exposure of underlying\ninvestments to different currencies. These considerations ensure the Financial\nStatements accurately reflect the Company’s economic circumstances and\ninvestment exposure.\n\n \n\nThe Directors believe that US dollars best represent the functional currency\nof the Company. The Financial Statements, results and the Statement of\nFinancial Position of the Company are also expressed in US dollars which is\nthe presentation currency of the Company and have been rounded to the nearest\nthousand unless otherwise stated.\n\n \nTransactions and Balances\nTransactions in currencies other than US dollars are recorded at the rates of\nexchange prevailing on the date of the transaction. At the end of each\nreporting period, monetary items and non-monetary assets and liabilities that\nare fair valued and are denominated in foreign currencies are retranslated at\nrates prevailing at the end of the reporting period. Gains and losses arising\non translation are included in the Statement of Comprehensive Income for the\nyear. Foreign exchange gains and losses relating to cash and cash equivalents\nare presented in the Statement of Comprehensive Income within ‘Net foreign\nexchange gains or losses’. Foreign exchange gains and losses relating to\nfinancial assets at fair value through profit or loss and derivatives are\npresented in the Statement of Comprehensive Income within ‘Net gains or\nlosses on investments’ and ‘Net gains on derivative instruments’\nrespectively.\n\n \n(d) Recognition of Dividend and Interest Income\nDividends arising on the Company’s investments are accounted for on an\nex-dividend basis, gross of applicable withholding taxes. Interest on cash at\nbank and collateral is accrued on a day-to-day basis using the effective\ninterest method. Dividends and interest income are recognised in the Statement\nof Comprehensive Income.\n\n \n(e) Income from Derivatives\nDerivative instrument income received from dividends on long (or payable from\nshort) CFDs are accounted for on the date on which the right to receive the\npayment is established, normally the ex-dividend date. The amount net of\nwithholding tax is credited (or charged) to the revenue column of the\nStatement of Comprehensive Income.\n\n \n\nInterest received on CFDs is accounted for on an accruals basis and credited\nto the revenue column of the Statement of Comprehensive Income. Interest\nreceived on CFDs represent the finance costs calculated by reference to the\nnotional value of the CFDs.\n\n \n(f) Finance Costs\nFinance costs comprise bank charges and finance costs paid on CFDs, which are\naccounted for on an accruals basis, and dividends paid on short CFDs, which\nare accounted for on the date on which the obligation to incur the cost is\nestablished, normally the exdividend date. Finance costs are charged in full\nto the revenue column of the Statement of Comprehensive Income.\n\n \n(g) Dividend Distribution\nDividend distributions are at the discretion of the Board of Directors. A\ndividend is recognised as a liability in the period in which it is approved at\nthe Annual General Meeting of the shareholders and is recognised in the\nStatement of Changes in Equity.\n\n \n(h) Cash and Cash Equivalents\nCash comprises current deposits with banks. Cash equivalents are short-term\nhighly liquid investments that are readily convertible to known amounts of\ncash, are subject to an insignificant risk of changes in value, and are held\nfor the purpose of meeting short-term cash commitments rather than for\ninvestment or other purposes.\n\n \n\nBank overdrafts are accounted for as short term liabilities on the Statement\nof Financial Position and the interest expense is recorded using the effective\ninterest rate method. Bank overdrafts are classified as other financial\nliabilities.\n\n \n(i) Amounts held at/due to futures clearing houses and brokers\nCash deposits are held in segregated accounts on behalf of brokers as\ncollateral against open derivative contracts. These are carried at amortised\ncost.\n\n \n(j) Due To and Due From Brokers\nAmounts due from/to brokers are recognised initially at fair value and\nsubsequently measured at amortised cost. At each reporting date, the Company\nshall measure the loss allowance on amounts due from broker at an amount equal\nto the lifetime expected credit losses if the credit risk has increased\nsignificantly since initial recognition. If, at the reporting date, the credit\nrisk has not increased significantly since initial recognition, the Company\nshall measure the loss allowance at an amount equal to 12-month expected\ncredit losses. Significant financial difficulties of the broker, probability\nthat the broker will enter bankruptcy or financial reorganisation, and default\nin payments are all considered indicators that amounts may be credit impaired.\nIf the credit risk increases to the point that it is considered to be credit\nimpaired, interest income will be calculated based on the gross carrying\namount adjusted for the loss allowance. A significant increase in credit risk\nis defined by management as any contractual payment which is more than 30 days\npast due. Any contractual payment which is more than 90 days past due is\nconsidered credit impaired.\n\n \n(k) Other receivables\nOther receivables include amounts receivable on settlement of derivatives,\nsecurities sold pending settlement, accrued income, taxation recoverable and\nother debtors and prepayments incurred in the ordinary course of business. If\ncollection is expected in one year or less they are classified as current\nassets. If not, they are presented as non-current assets. Other receivables\nare recognised initially at fair value and, where applicable, subsequently\nmeasured at amortised cost using the effective interest rate method and as\nreduced by appropriate allowance for estimated irrecoverable amounts.\n\n \n(l) Other payables\nOther payables include amounts payable on settlement of derivatives,\nsecurities purchased pending settlement, investment management fees, amounts\npayable for repurchase of shares, finance costs payable and expenses accrued\nin the ordinary course of business. Other payables are classified as current\nliabilities if payment is due within one year or less. If not, they are\npresented as non-current liabilities. Other payables are recognised initially\nat fair value and, where applicable, subsequently measured at amortised cost\nusing the effective interest rate method.\n\n \n(m) Segment Reporting\nOperating Segments are reported in a manner consistent with the internal\nreporting used by the chief operating decision make (‘CODM’). The CODM,\nwho is responsible for allocation of resources and assisting performance of\nthe operating segments, has been identified as the Directors of the Company,\nas the Directors are ultimately responsible for investment decisions.\n\n \n\nThe Company is engaged in a single segment business and, therefore, no\nsegmental reporting is provided.\n\n \n(n) Management fees and other expenses\nAll expenses are accounted for on an accruals basis and are charged to the\nStatement of Comprehensive Income.\n\nExpenses are allocated wholly to revenue with the following exceptions:\n\n· Management fees are allocated 20% to revenue and 80% to the capital, in\nline with the Board’s expected long-term split of revenue and capital return\nfrom the Company’s investment portfolio; and\n\n· Expenses which are incidental to capital events are charged to capital.\n\n \n(o) Taxation\nThe Company currently incurs withholding taxes imposed by certain countries on\ninvestment income and capital gains taxes upon realisation of its investments.\nSuch income or gains are recorded gross of withholding taxes and capital gains\ntaxes in the Statement of Comprehensive Income. Withholding taxes and capital\ngains taxes are shown as separate items in the Statement of Comprehensive\nIncome.\n\nIn accordance with IAS 12, ‘Income taxes’, the Company is required to\nrecognise a tax liability when it is probable that the tax laws of foreign\ncountries require a tax liability to be assessed on the Company’s capital\ngains sourced from such foreign country, assuming the relevant taxing\nauthorities have full knowledge of all the facts and circumstances. The tax\nliability is then measured at the amount expected to be paid to the relevant\ntaxation authorities, using the tax laws and rates that have been enacted or\nsubstantively enacted by the end of the reporting period. There is sometimes\nuncertainty about the way enacted tax law is applied to offshore investment\nfunds. This creates uncertainty about whether or not a tax liability will\nultimately be paid by the Company. Therefore, when measuring any uncertain tax\nliabilities, management considers all of the relevant facts and circumstances\navailable at the time that could influence the likelihood of payment,\nincluding any formal or informal practices of the relevant tax authorities.\n\n \n(p) Share Capital\nParticipating Preference Shares are not redeemable and there is no obligation\nto pay cash or another financial asset to the holder but are entitled to\nreceive dividends. They are classified as equity. Incremental costs directly\nattributable to the issue of new shares are shown in equity as a deduction\nfrom the proceeds net of tax.\n\n \n(q) Purchase of Own Shares\nThe cost of purchases of the Company’s own shares is shown as a reduction in\nShareholders’ Funds. The Company’s net asset value and return per\nParticipating Preference Share are calculated using the number of shares\noutstanding after adjusting for purchases.\n\n \n(r) Critical Accounting Estimates and Assumptions\nAs stated in Note 2(a) Basis of Preparation, the preparation of financial\nstatements, in conformity with IFRS, requires the use of certain critical\naccounting estimates. It also requires the Board of Directors to exercise its\njudgment in the process of applying the Company’s accounting policies. For\nexample, the Company may, from time to time, hold financial instruments that\nare not quoted in active markets, such as minority holdings in investment and\nprivate equity companies. Fair values of such instruments are determined using\ndifferent valuation techniques validated and periodically reviewed by the\nBoard of Directors.\n\n \n(s) Capital reserve\nThe following are transferred to the capital reserve:\n\n· Gains and losses on the disposal of financial assets at fair value through\nprofit and loss and derivatives instruments;\n\n· Changes in the fair value of financial assets at fair value through profit\nand loss and derivative instruments, held at the year end;\n\n· Foreign exchange gains and losses of a capital nature;\n\n· 80% of management fees;\n\n· Dividends receivable which are capital in nature;\n\n· Taxation charged or credited relating to items which are capital in\nnature; and\n\n· Other expenses which are capital in nature.\n\nThe Company holds 9,025,940 participating preference shares in Treasury which\nhave been excluded from the net asset value and earnings per participating\npreference share calculations from the date of repurchase into Treasury.\n\n \n3. Income\n Year ended 30 June 2026 $’000 Year ended 30 June 2025 $’000 \n Investment income \n UK dividends 1,366 619 \n Overseas dividends 17,500 22,320 \n Interest on securities – 2 \n 18,866 22,941 \n Derivative income \n Dividend income on long CFDs 10,676 14,964 \n Interest income on CFDs 699 1,166 \n Option income 13,972 10,725 \n 25,347 26,855 \n Other income \n Interest income on cash, collateral and money market funds 947 631 \n Interest on capital gains tax refund 16 – \n 963 631 \n Total income 45,176 50,427 \n\nSpecial dividends of $93,000 (2025: $3,230,000) have been recognised in\ncapital.\n\n \n4. Investment Management Fees\n Year ended 30 June 2026 Year ended 30 June 2025 \n Revenue $’000 Capital $’000 Total $’000 Revenue $’000 Capital $’000 Total $’000 \n Investment management fees 934 3,734 4,668 863 3,451 4,314 \n\nFIL Investment Services (UK) Limited is the Company’s Alternative Investment\nFund Manager (the “Manager”) and has delegated investment management to\nFIL Investments International (FII). Both companies are Fidelity group\ncompanies.\n\n \n\nFII charges an investment management fee of 0.60% per annum of the Net Asset\nValue of the Company. Fees are payable monthly in arrears and calculated on a\ndaily basis. Investment management fees have been allocated 80% to the capital\nreserve in accordance with the Company’s accounting policies.\n\n \n\nManagement fees incurred by collective investment schemes or investment\ncompanies invested into by the Company managed or advised by the Investment\nManager are reimbursed.\n\n \n5. Other Expenses\n Year ended 30 June 2026 $’000 Year ended 30 June 2025 $’000 \n Allocated to revenue: \n Custodian fees 316 251 \n Directors’ fees 307 264 \n Directors’ expenses 131 30 \n Administration fees 223 216 \n Audit fees 116 116 \n Legal and professional fees 396 83 \n Marketing expenses 468 334 \n Other expenses 249 350 \n 2,206 1,644 \nAdministration fees\nThe Administrator is entitled to receive a fee, payable monthly, based on the\nNet Asset Value of the Company and time incurred.\n\n \nCustodian fee\nUnder the Custodian Agreement, the Custodian to the Company is entitled to\nreceive a fee payable monthly, based on the Net Asset Value of the Company.\nAll custody services are performed by JP Morgan Chase Bank.\n\n \n\nThe Company also incurs charges and expenses of other organisations with whom\nsecurities are held. The total of all Custodian fees for the year represented\napproximately 0.04% (2025: 0.04%) per annum of the average Net Assets of the\nCompany.\n\n \n6. Finance Costs\n Year ended 30 June 2026 Year ended 30 June 2025 \n Revenue $’000 Capital $’000 Total $’000 Revenue $’000 Capital $’000 Total $’000 \n Dividends on short CFDs 2,352 – 2,352 3,506 – 3,506 \n Interest on CFDs 21,171 – 21,171 20,198 – 20,198 \n 23,523 – 23,523 23,704 – 23,704 \n7. Taxation\n Year ended 30 June 2026 Year ended 30 June 2025 \n Revenue $’000 Capital $’000 Total $’000 Revenue $’000 Capital $’000 Total $’000 \n Capital gains tax – 785 785 – 3,162 3,162 \n Overseas taxation 2,110 – 2,110 2,347 – 2,347 \n 2,110 785 2,895 2,347 3,162 5,509 \n\nThe Company is exempt from taxation in Guernsey under the provisions of the\nIncome Tax (Exempt Bodies) (Guernsey) Ordinance, 2012. As such, the Company is\nliable to pay a fixed annual fee, currently £1,600 (2025: £1,600).\n\n \n\nIncome due to the Company is subject to withholding taxes. The Manager\nundertakes regular reviews of the tax situation of the Company and believes\nthat withholding taxes on dividend income and capital gains taxes on capital\ngains are currently the material transactions that generate the amounts of tax\npayable.\n\n \n\nIn accordance with IAS 12, ‘Income taxes’, where necessary the Company\nprovides for deferred taxes on any capital gains/losses on the revaluation of\nsecurities in such jurisdictions where capital gains tax is levied.\n\n \n\nThe capital gains charge has been calculated on the basis of the tax laws\nenacted or substantially enacted at the reporting date in the countries where\nthe Company’s investments generate taxable income on realisation. The\nManager, on behalf of the Board, periodically evaluates which applicable tax\nregulations are subject to interpretation and establishes provisions when\nappropriate.\n\n \n\nAs at 30 June 2026, $1,282,000 capital gains tax refund was recognised in the\nStatement of Financial Position (2025: $2,140,000 capital gains tax\nprovision).\n\n \n8. Basic and diluted earnings per Participating Preference Share\n Year ended 30 June 2026 Year ended 30 June 2025 \n Revenue earnings per Participating Preference Share $0.32 $0.31 \n Capital earnings per Participating Preference Share $8.23 $1.52 \n Total earnings per Participating Preference Share (basic and diluted) $8.55 $1.83 \n\nThe basic and diluted earnings per Participating Preference Share is based on\nthe profit after taxation for the year divided by the weighted average number\nof Participating Preference Shares held outside of Treasury during the year,\nas shown below:\n\n $’000 $’000 \n Revenue profit after taxation for the year 16,403 21,869 \n Capital profit after taxation for the year 415,400 105,117 \n Total profit after taxation for the year 431,803 126,986 \n\n \n\n Number Number \n Weighted average number of Participating Preference Shares held outside of Treasury 50,507,081 69,485,764 \n9. Dividends Paid to Shareholders\n Year ended 30 June 2026 $’000 Year ended 30 June 2025 $’000 \n Dividend paid \n 2025 final dividend of 26.0¢ (2024: 20.0¢) per Participating Preference Share 12,338 14,103 \n Total dividend paid 12,338 14,103 \n \n Dividend proposed \n 2026 final dividend of 33.0¢ (2025: 26.0¢) per Participating Preference Share 12,993 16,729 \n Total dividend proposed 12,993 16,729 \n\nThe Directors have proposed the payment of a final dividend for the year ended\n30 June 2026 of 33.0¢ per Participating Preference Share, which is subject to\napproval by shareholders at the Annual General Meeting on 1 December 2026 and\nhas not been included as a liability in these financial statements. The\ndividend will be paid on 8 December 2026 to shareholders on the register at\nthe close of business on 13 November 2026 (ex-dividend date 12 November 2026).\n\n \n10. Investments at Fair Value through Profit or Loss\n 30 June 2026 $’000 30 June 2025 $’000 \n Investments \n Equity securities 759,695 708,476 \n Investee funds 7,750 4,385 \n Total investments 767,445 712,861 \n \n Opening book cost 654,401 695,828 \n Opening unrealised gains 58,460 925 \n Opening fair value of investments 712,861 696,753 \n Movements in the year \n Purchases at cost 921,043 740,453 \n Sales – proceeds (1,247,976) (805,324) \n Gains on investments 381,517 80,979 \n Closing fair value 767,445 712,861 \n Closing book cost 586,286 654,401 \n Closing unrealised gains 181,159 58,460 \n Closing fair value of investments 767,445 712,861 \nGains/(losses) on Investments at fair value through profit or loss\n Year ended 30 June 2026 $’000 Year ended 30 June 2025 $’000 \n Realised gains/(losses) on investments \n Realised gains 333,101 103,003 \n Realised losses (74,283) (79,559) \n Net realised gains on investments 258,818 23,444 \n Change in unrealised gains/(losses) on investments 1 \n Change in unrealised gains on investments 324,822 31,166 \n Change in unrealised losses on investments (202,123) 26,369 \n Net change in unrealised gains on investments 122,699 57,535 \n Net gains on investments 381,517 80,979 \n\n1. The change in unrealised gains/(losses) on investments is calculated as\nthe difference between the total unrealised investments gains/(losses)\nrecognised in the Statement of Financial Position at reporting date and the\ntotal unrealised investments gains/(losses) position recognised at the\ncomparative date.\n\n \n\nThe Company received $1,247,976,000 (2025: $805,324,000) from investments at\nfair value sold in the year. The book cost of these investments at fair value\nwhen they were purchased was $989,158,000 (2025: $781,880,000). These\ninvestments have been revalued over time and until they were sold any\nunrealised gains/losses were included in the fair value of the investments at\nfair value through profit or loss.\n\n \n\nInvestment transaction costs incurred in the acquisition and disposal of\ninvestments, which are included in the gains on investments at fair value\nthrough profit and loss were as follows:\n\n Year ended 30 June 2026 $’000 Year ended 30 June 2025 $’000 \n Purchases transaction costs 955 930 \n Sales transaction costs 1,993 1,081 \n 2,948 2,011 \n11. Derivative Instruments\n Year ended 30 June 2026 $’000 Year ended 30 June 2025 $’000 \n Realised gains/(losses) on derivative instruments \n Gains on CFDs 484,341 194,933 \n Gains on futures contracts 14,121 30,630 \n Gains on options 15,135 17,153 \n Gains on forward currency contracts 2,315 1,881 \n Losses on CFDs (376,594) (146,864) \n Losses on futures contracts (95,233) (31,875) \n Losses on options (20,564) (20,472) \n Losses on forward currency contracts (403) (2,539) \n Net realised gains on derivative instruments 23,118 42,847 \n Change in unrealised gains/(losses) on derivative instruments1 \n Change in unrealised gains on CFDs 20,224 (7,695) \n Change in unrealised gains on futures contracts 4,691 74 \n Change in unrealised gains on options 972 (1,835) \n Change in unrealised gains on forward currency contracts 118 (293) \n Change in unrealised losses on CFDs (9,934) (2,452) \n Change in unrealised losses on futures contracts 4,137 (2,248) \n Change in unrealised losses on options (1,682) 3,828 \n Net change in unrealised gains/(losses) on derivative instruments 18,526 (10,621) \n Net gains on derivative instruments 41,644 32,226 \n\n \n\n 30 June 2026 Fair value $’000 30 June 2025 Fair value $’000 \n Fair value of derivative instruments recognised on the Statement of Financial Position 2 \n Derivative instrument assets 41,149 15,006 \n Derivative instrument liabilities (22,142) (15,784) \n 19,007 (778) \n\n1. The change in unrealised gains/(losses) on each type of derivative\ncontract is calculated as the difference between the total unrealised\ngains/(losses) on the relevant derivative positions recognised in the\nStatement of Financial Position at reporting date and the total unrealised\ngains/(losses) on the relevant derivative positions recognised at the\ncomparative date.\n\n2. The fair value hierarchy of the derivative instruments is shown in Note\n17.\n\n \n\n 30 June 2026 30 June 2025 \n Fair value $’000 Asset exposure $’000 Fair value $’000 Asset exposure $’000 \n At the year end the Company held the following derivative instruments \n Long CFDs 5,554 572,585 2,037 433,157 \n Short CFDs 6,170 199,865 (603) 180,705 \n Long future contracts 67 6,954 (45) 16,965 \n Short future contracts 785 23,282 (942) 28,958 \n Short futures contracts (hedging exposure) 4,182 (205,692) (2,808) (160,910) \n Long call option contracts 5,054 19,404 3,865 21,474 \n Short put option contracts – – 79 680 \n Short call option contracts (hedging exposure) (1,367) (10,413) (827) (10,949) \n Long put option contracts (1,626) 12,662 (1,605) 12,313 \n Forward currency contracts 188 – 71 – \n 19,007 618,647 (778) 522,393 \n12. Other Receivables\n 30 June 2026 $’000 30 June 2025 $’000 \n CFD interest receivable 32 – \n CFD dividends receivable 1,286 2,235 \n Securities sold for future settlement 8,597 3,389 \n Amounts receivable on settlement of derivatives 1,085 1,632 \n Accrued income 668 2,166 \n Taxation recoverable 2,626 – \n Other receivables 39 82 \n 14,333 9,504 \n13. Other Payables\n 30 June 2026 $’000 30 June 2025 $’000 \n CFD interest payable 1,060 1,018 \n CFD dividends payable 1,000 1,111 \n Securities purchased for future settlement 4,266 6,086 \n Amounts payable on settlement of derivatives 1,655 9 \n Investment management fees 444 365 \n Custodian fees 47 45 \n Directors’ fees 76 66 \n Amounts payable for repurchase of shares held in Treasury – 1,048 \n Amounts payable for repurchase of shares for cancellation 2,320 – \n Capital gains tax payable 1,344 2,140 \n Accrued expenses 276 143 \n 12,488 12,031 \n14.  Share Capital\n 2026 Number of shares 2025 Number of shares \n Authorised and Issued \n Founder shares of no par value 1,000 1,000 \n Issued \n Participating Preference Shares held outside of Treasury \n Beginning of the year 64,342,245 74,646,287 \n Participating Preference Shares repurchased and cancelled (8,527,914) – \n Participating Preference Shares repurchased and cancelled for Strathclyde Pension Fund (16,441,177) – \n Participating Preference Shares repurchased into Treasury – (10,304,042) \n End of the year 39,373,154 64,342,245 \n Participating Preference Shares held in Treasury 1 \n Beginning of the year 13,225,940 2,921,898 \n Participating Preference Shares repurchased into Treasury – 10,304,042 \n Participating Preference Shares cancelled from Treasury (4,200,000) – \n End of the year 9,025,940 13,225,940 \n \n Total Participating Preference Shares 48,399,094 77,568,185 \n\n1 The ordinary shares held in Treasury carry no rights to vote, to receive a\ndividend or to participate in a winding up of the Company.\n\n \n\nThe total costs associated with the repurchase of the shares of $327,090,000\nwere charged to the capital reserve for the year ended 30 June 2026. (30 June\n2025: $94,701,000).\n\n \n\nIn November 2025, the Company completed the repurchase of 16,441,177\nParticipating Preference Shares from the Strathclyde Pension Fund,\nrepresenting approximately 25.7% of the Company’s voting share capital. The\nshares were repurchased at an agreed discount of 14% to NAV and subsequently\ncancelled. As the Company’s share price discount to NAV at the time of\ncompletion was less than 10%, the transaction resulted in an immediate uplift\nof more than 4.5% in NAV per share for continuing shareholders.\n\n \n\nThe Company may issue an unlimited number of Unclassified Shares of no par\nvalue.\n\n \nFounder Shares\nThe Founder Shares are non-redeemable and carry no rights other than the right\nto vote at general meetings of the Company. On a poll, each holder is entitled\nto one vote. The Founder Shares are no par value shares.\n\n \nTreasury Shares\nAs at 30 June 2026, the Company held 9,025,940 shares in Treasury (2025:\n13,225,940).\n\n \nParticipating Preference Shares\nThe holders of Participating Preference Shares rank ahead of holders of any\nother class of share in issue in the event of winding up and are entitled to\nparticipate in any surplus assets available for distribution. The\nParticipating Preference Shares confer the right to receive discretionary\ndividends declared by the Company and, at general meetings, on a poll, confer\none vote in respect of each Participating Preference Share held.\n\n \n\nThe Participating Preference Shares are classified as equity as they represent\na residual interest in the net assets of the Company and do not give rise to a\ncontractual obligation on the Company to deliver cash or another financial\nasset. All classes of share capital are classified as equity in accordance\nwith IAS 32 ‘Financial Instruments: Presentation’, as the shares are\nnon-redeemable and do not impose any contractual obligation on the Company to\ndeliver cash or another financial asset to the holders.\n\n \n15. Capital and Reserves\n Share premium account $’000 Capital reserve $’000 Revenue reserve $’000 Total equity $’000 \n At 1 July 2025 6,291 706,238 59,099 771,628 \n Net gains on investments at fair value through profit or loss (see Note 10) – 381,517 – 381,517 \n Net gains on derivative instruments (see Note 11) – 41,644 – 41,644 \n Net foreign exchange losses – (3,242) – (3,242) \n Management fees (see Note 4) – (3,734) – (3,734) \n Capital gains tax (see Note 7) – (785) – (785) \n Participating Preference Shares repurchased and cancelled (see Note 14) – (132,253) – (132,253) \n Participating Preference Shares repurchased and cancelled for Strathclyde Pension – (193,927) – (193,927) \n Fund (see Note 14)* \n Buyback expenses – (910) – (910) \n Revenue profit after taxation for the year – – 16,403 16,403 \n Dividends paid to shareholders (see Note 9) – – (12,338) (12,338) \n At 30 June 2026 6,291 794,548 63,164 864,003 \n\n* In November 2025, the Company completed the repurchase of a large\nshareholding (16.4 million shares) from the Strathclyde Pension Fund,\nequivalent to roughly 25% of the shares in issue. These shares were bought\nback at an agreed 14% discount to NAV and subsequently cancelled. Given the\nshare price discount to NAV at the time of the repurchase was less than 10%,\nthe transaction led to an immediate uplift of more than 4.5% in the NAV per\nshare for continuing shareholders, underlining the Company’s commitment to a\nfair outcome for all its investors.\n\n \n\n Share premium account $’000 Capital reserve $’000 Revenue reserve $’000 Total equity $’000 \n At 1 July 2024 6,291 695,822 51,333 753,446 \n Net gains on investments at fair value through profit or loss (see Note 10) – 80,979 – 80,979 \n Net gains on derivative instruments (see Note 11) – 32,226 – 32,226 \n Net foreign exchange losses – (1,475) – (1,475) \n Management fees (see Note 4) – (3,451) – (3,451) \n Capital gains tax (see Note 7) – (3,162) – (3,162) \n Participating Preference Shares repurchased into Treasury (see Note 14) – (94,701) – (94,701) \n Revenue profit after taxation for the year – – 21,869 21,869 \n Dividend paid to shareholders (see Note 9) – – (14,103) (14,103) \n At 30 June 2025 6,291 706,238 59,099 771,628 \nShare Premium\nShare Premium is the amount by which the value of shares subscribed for\nexceeded their nominal value at the date of issue.\n\n \n\nThe capital reserve balance at 30 June 2026 includes unrealised investment\nholding gains of $181,159,000 (2025: gains of $58,460,000) as detailed in Note\n10.\n\n \n16. Net Asset Value per Participating Preference Share\nThe calculation of the net asset value per Participating Preference Share is\nbased on the net assets divided by the number of Participating Preference\nShares held outside of Treasury:\n\n 30 June 2026 30 June 2025 \n Net assets $864,003,000 $771,628,000 \n Participating Preference Shares held outside of Treasury 39,373,154 64,342,245 \n Net asset value per Participating Preference Share $21.94 $11.99 \n  17. Financial Instruments\nManagement of risk\nThe Company’s investing activities in pursuit of its investment objective\ninvolve certain inherent risks. The Board confirms that there is an ongoing\nprocess for identifying, evaluating and managing the risks faced by the\nCompany. The Board, with the assistance of the Investment Manager, has\ndeveloped a risk matrix which, as part of the internal control process,\nidentifies the risks that the Company faces. Risks are identified and graded\nin this process, together with steps taken in mitigation, and are updated and\nreviewed on an ongoing basis. Risks identified are shown in the Strategic\nReport.\n\n \n\nThis note, prepared in accordance with IFRS 7: Financial Instruments –\nDisclosures, describes the Company’s exposure to financial instrument risks\nat the reporting date and the Company’s related risk management objectives,\npolicies and processes.\n\n \n\nThe Company’s financial instruments may comprise:\n\n· Equity shares (listed and unlisted), preference shares, equity linked\nnotes, convertible bonds, rights issues, holdings in investment companies and\nprivate placements;\n\n· Derivative instruments including CFDs, warrants, futures and options\nwritten or purchased on stocks and equity indices and forward currency\ncontracts; and\n\n· Cash, liquid resources and short-term receivables and payables that arise\nfrom its operation; and\n\n· Bank borrowings.\n\n \n\nThe risks identified by IFRS 7 arising from the Company’s financial\ninstruments are market price risk (which comprises interest rate risk, foreign\ncurrency risk and other price risk), liquidity risk, credit and counterparty\nrisk and derivative instrument risk. The Board reviews and agrees policies for\nmanaging each of these risks, which are summarised below. These policies are\nconsistent with those followed last year.\n\n \nInterest rate risk\nThe Company finances its operations through its capital and reserves. In\naddition, the Company has gearing through the use of derivative instruments.\nThe level of gearing is reviewed by the Board and the Investment Manager. The\nCompany is exposed to a financial risk arising as a result of any increases in\ninterest rates associated with the funding of the derivative instruments.\n\n \nInterest rate risk exposure\nThe amounts of the Company’s financial instruments that are exposed to\nmovements in interest rates are shown below:\n\n 30 June 2026 $’000 30 June 2025 $’000 \n Exposure to financial instruments that bear interest \n Long CFDs – exposure less fair value 567,031 431,120 \n Bank overdraft 7 – \n 567,038 431,120 \n Exposure to financial instruments that earn interest \n Short CFDs – exposure plus fair value 206,035 180,102 \n Amounts held at futures clearing houses and brokers 42,884 52,521 \n Cash and cash equivalents 32,829 9,551 \n 281,748 242,174 \n Net exposure to financial instruments that bear interest (285,290) (188,946) \n  Interest rate risk sensitivity analysis\nBased on the financial instruments held and interest rates at the statement of\nfinancial position date, an increase of 1% in interest rates throughout the\nyear, with all other variables held constant, would have decreased the net\nprofit after taxation for the year and decreased the net assets of the Company\nby $2,853,000 (2025: decreased the net profit after taxation for the year and\ndecreased the net assets of the Company by $1,889,000). A decrease of 1% in\ninterest rates throughout the year would have had an equal but\nopposite effect.\n\n \nForeign currency risk\nThe Company invests in financial instruments and enters into transactions\ndenominated in currencies other than its functional currency. Consequently,\nthe Company is exposed to risks that the exchange rate of its functional\ncurrency relative to other foreign currencies may change in a manner that has\nan adverse effect on the value of that portion of the Company’s assets or\nliabilities denominated in currencies other than US dollars (functional\ncurrency) or UK Sterling (the currency in which shares are traded on the\nLondon Stock Exchange).\n\n \n\nThree principal areas have been identified where foreign currency risk could\nimpact the Company:\n\n· Movements in currency exchange rates affecting the value of investments\nand derivatives exposures;\n\n· Movements in currency exchange rates affecting short-term timing\ndifferences, for example, between the date when an investment is bought or\nsold and the date when settlement of the transaction occurs; and\n\n· Movements in currency exchange rates affecting income received.\n\n \nCurrency exposure of financial assets and liabilities\nThe Company’s financial assets comprise of investments, positions on\nderivative instruments, short-term debtors, cash and cash equivalents.\n\n \n\nThe Company finances its investment activities through its ordinary share\ncapital and reserves. The Company’s financial liabilities comprise positions\non derivative instruments and other payables.\n\nThe net currency exposure profile of these financial assets/(liabilities) is\nshown below:\n\n Currency Investments held at fair value through profit or loss $’000 Asset/ (liabilities) exposure of derivative instruments 1 $’000 Cash, cash equivalents and other receivables/ (payables) 2 $’000 2026 Total foreign currency risk $’000 \n Brazilian real 54,710 – 220 54,930 \n Canadian dollar 18,086 32,684 27 50,797 \n Chinese yuan renminbi 67,366 – – 67,366 \n Euro 14,167 4,698 443 19,308 \n Sterling 4,590 22,689 3,403 30,682 \n Hong Kong dollar 1,146 43,142 1,275 45,563 \n Hungarian forint 22,221 – 1,382 23,603 \n Indian rupee 55,059 (23,251) 23,507 55,315 \n Indonesian rupiah 22,466 – (210) 22,256 \n Japanese yen – (17,465) – (17,465) \n Korean won 187,525 (31) 2,798 190,292 \n Mexican peso 16,841 8,895 (10) 25,726 \n Nigerian naira 11,972 – 360 12,332 \n Sol 10,648 – – 10,648 \n Philippine peso 1,950 – – 1,950 \n Polish złoty 14,974 (10,097) 3,020 7,897 \n Romanian leu 1,681 – (520) 1,161 \n Turkish lira 23,070 – – 23,070 \n Taiwan dollar 179,134 – 402 179,536 \n United States dollar 19,531 79,564 40,983 140,078 \n Vietnamese dong 11,215 – – 11,215 \n South African rand 29,093 34,222 (151) 63,164 \n Other currencies – (2,509) 622 (1,887) \n 767,445 172,541 77,551 1,017,537 \n\n1. The asset exposure of long and short derivative positions is after the\nnetting of hedging exposures and forward currency contracts.\n\n2. Includes amounts held at futures clearing houses and brokers.\n\n \n\n Currency Investments held at fair value through profit or loss $’000 Asset/ (liabilities) exposure of derivative instruments 1 $’000 Cash, cash equivalents and other receivables/ (payables) 2 $’000 2025 Total foreign currency risk $’000 \n Brazilian real 40,116 – 213 40,329 \n Canadian dollar 29,984 24,222 (22) 54,184 \n Chinese yuan renminbi 15,173 – – 15,173 \n Euro 26,672 (7,301) 80 19,451 \n Hong Kong dollar 15,298 104,635 752 120,685 \n Hungarian forint 19,303 – – 19,303 \n Indian rupee 108,157 (15,666) 27,173 119,664 \n Indonesian rupiah 33,375 – – 33,375 \n Japanese yen – (13,964) (197) (14,161) \n Korean won 20,415 (10,485) 5,011 14,941 \n Mexican peso 41,652 10,191 55 51,898 \n Nigerian naira 12,067 – 324 12,391 \n Poland złoty 16,704 (14,578) 13 2,139 \n Romanian Leu 11,310 – (31) 11,279 \n Saudi riyal 4,402 – 385 4,787 \n Sol 8,557 – 1,024 9,581 \n South African rand 83,832 75,841 (52) 159,621 \n Sterling – 34,563 861 35,424 \n Swedish krona – (10,825) 108 (10,717) \n Taiwan dollar 127,956 – 478 128,434 \n Turkish lira 9,226 – – 9,226 \n United Arab Emirates dirham 19,003 – – 19,003 \n United States dollar 52,796 (73,794) 22,061 1,063 \n Vietnamese dong 16,863 – 1,304 18,167 \n Other currencies – (2,099) 5 (2,094) \n 712,861 100,740 59,545 873,146 \n\n1. The asset exposure of long and short derivative positions is after the\nnetting of hedging exposures and forward currency contracts.\n\n2. Includes amounts held at futures clearing houses and brokers.\n  Foreign currency risk management\nThe sensitivity analysis below illustrates the estimated impact on net assets\nof a 5% movement in the US dollar against the basket of currencies to which\nthe Company is exposed, with all other variables held constant. A weakening of\nthe US dollar would increase net assets, while a strengthening of the US\ndollar would decrease net assets. The estimated impacts are presented in the\ntable below.\n\n \n\nThe Investment Manager does not consider it meaningful to assess foreign\ncurrency risk in isolation. As the Company’s net asset value is denominated\nin US dollars, the Investment Manager considers net asset value to be the most\nappropriate measure of the overall risk of the portfolio.\n\n \n\n Impact on net assets ($’000) 2026 2025 \n US dollar weakened by 5% 46,374 46,116 \n US dollar strengthened by 5% (41,968) (41,731) \n  Market price risk\nMarket price risk is the risk that value of the instrument will fluctuate as a\nresult of changes in market prices (other than those arising from foreign\ncurrency risk and interest rate risk), whether caused by factors specific to\nan individual investment, its issuer, or all factors affecting all instruments\ntraded in the market.\n\n \nMarket price risk management\nMarket price risk is managed by the Investment Manager through:\n\n(i) a disciplined stock selection and investment process; and\n\n(ii) limiting exposure to individual investments through diversification and\nthe application of investment restrictions.\n\nThe Board reviews the composition and performance of the investment portfolio\nat its regular meetings. Details of the portfolio’s country and sector\nexposures, and the Company’s largest holdings, are set in the report and\ndemonstrate the diversified nature of the portfolio.\n\n \n\nThe Investment Manager has identified the MSCI Emerging Markets Index total\nreturn as a relevant reference point for the markets in which the Company\ninvests. The Company is managed on an active basis and not to track the\nperformance of the MSCI Emerging Markets Index total return, or any other\nindex or benchmark. The Company’s performance is relative to the MSCI\nEmerging Markets Index total return and is presented in the Financial\nHighlights section.\n\n \nMarket price risk – Investee Funds\nThe Company’s investments in Investee Funds are subject to the terms and\nconditions of the respective Investee Fund’s offering documentation and are\nsusceptible to market price risk arising from uncertainties about future\nvalues of those Investee Funds. The Investment Manager undertakes due\ndiligence when selecting and monitoring Investee Funds. Investee Funds in the\nportfolio are managed by the Investment Manager who is compensated by the\nrespective Investee Funds for their services. Such compensation consists of an\nasset based fee and a performance based incentive fee and is reflected in the\nvaluation of the Company’s investment in each of the Investee Funds.\n\n \n\nThe exposure to investments in Investee Funds at fair value is disclosed as\npart of the note below and included in ‘Financial assets at fair value\nthrough profit or loss’ in the Statement of Financial Position. The\nCompany’s maximum exposure to loss from its interests in Investee Funds is\nequal to the total fair value of these investments.\n\n \n\nTotal purchases in Investee Funds amounted $nil (2025: $nil). Total sales\namounted to $740,000 (2025: $1,138,000). As at 30 June 2026 and 2025 there\nwere no capital commitment obligations and no amounts due to Investee Funds\nfor unsettled purchases.\n\n \nOther price risk\nOther price risk arises mainly from uncertainty about future prices of\nfinancial instruments. It represents the potential loss the Company might\nsuffer through price movements in its investment positions. The Board meets\nquarterly to consider the asset allocation of the portfolio and the risk\nassociated with particular industry sectors within the parameters of the\ninvestment objective.\n\n \n\nThe Investment Manager is responsible for actively monitoring the portfolio\nselected in accordance with the overall asset allocation parameters and seeks\nto ensure that individual stocks also meet an acceptable risk/reward profile.\nOther price risks arising from derivative positions, mainly due to the\nunderlying exposures, are assessed by the Investment Manager’s specialist\nderivative instruments team.\n\n \nOther price risk sensitivity\nThe following table illustrates the sensitivity of the profit after taxation\nfor the year and net assets to a 10% (2025: 10%) increase or decrease in the\nfair value of investments. This level of change is considered to be a\nreasonable illustration based on observation of current market conditions.\nThe sensitivity analysis is based on investments with all other variables held\nconstant.\n\n \n\nThe other price sensitivity analysis is based on the valuation of investments\ndirectly held by the Company. For underlying investment funds this is based on\nthe net assets of such underlying funds as included in the Company’s\nportfolio of investments at reporting date.\n\n \n\nThe values of certain investments, in particular positions held in underlying\nfunds may vary due to currency, interest rate and credit risks and such risks\nare not directly considered in the other price risk sensitivity analysis.\n\n \n\nEffect of a 10% increase/(decrease) in fair value:\n\n 2026 2025 \n 10% increase in fair value $’000 10% decrease in fair value $’000 10% increase in fair value $’000 10% decrease in fair value $’000 \n Total profit after taxation for the year 76,745 (76,745) 71,286 (71,286) \n Net assets 76,745 (76,745) 71,286 (71,286) \n  Liquidity risk\nLiquidity risk is the risk that the Company will encounter difficulties in\nmeeting obligations associated with financial liabilities. The Company’s\nassets mainly comprise readily realisable securities and derivative\ninstruments which can be sold easily to meet funding commitments if necessary.\nShort-term flexibility is achieved by the use of a bank overdraft, if\nrequired.\n\n \n\nThe liquidity risk profile of the Company was as follows:\n\n 30 June 2026 $’000 30 June 2025 $’000 \n Amounts due within one month \n Securities purchased for future settlement 4,266 6,086 \n Amounts payable for repurchase of shares held in Treasury – 1,048 \n Amounts payable for repurchase of shares for cancellation 2,320 – \n Amounts payable on settlement of derivatives 1,655 9 \n Derivative liabilities 1 19,627 10,773 \n Forward currency contracts 17,465 15,117 \n CFD interest payable 1,060 1,018 \n CFD dividends payable 1,000 1,111 \n Custodian fees 47 45 \n Investment management fees 444 365 \n Directors’ fees 76 66 \n Bank overdraft 7 – \n Accrued expenses 276 143 \n Amounts due within one year \n Derivative liabilities 1 2,515 5,011 \n Capital gains tax payable 1,344 2,140 \n Total liabilities 52,102 42,932 \n\n1.  Includes CFDs, options and future contracts.\n  Liquidity risk management\nThe restrictions on concentration and the diversification requirements\ndetailed above referred to under market price risk also assist in mitigating\nliquidity risk by reducing exposure to individual investments and markets in\nwhich the Company operates.\n\n \n\nThe Company has no payables past their due dates as at 30 June 2026 (2025:\nnil).\n\n \nCredit and counterparty risk\nCredit risk is the risk that a counterparty to a financial instrument will\nfail to discharge an obligation or commitment it has entered into with the\nCompany. Financial instruments may be adversely affected if any of the\ninstitutions with which money is deposited suffer insolvency or other\nfinancial difficulties. All transactions are carried out with brokers that\nhave been approved by the Investment Manager and are settled on a delivery\nversus payment basis. Limits are set on the amount that may be due from any\none broker and are kept under review by the Investment Manager. Exposure to\ncredit risk arises on outstanding security transactions and derivative\ninstrument contracts and cash at bank. The Company only engages with approved\ncounterparties that are rated investment grade or above.\n\n \n\nThe Company has no receivables past their due dates as at 30 June 2026 (2025:\nnil).\n\n \nCredit risk management\nCertain derivative instruments in which the Company may invest are not traded\non an exchange but instead will be traded between counterparties based on\ncontractual relationships, under the terms outlined in the International Swaps\nand Derivatives Association’s (“ISDA”) market standard derivative legal\ndocumentation. These are known as Over The Counter (“OTC”) trades. As a\nresult, the Company is subject to the risk that a counterparty may not perform\nits obligations under the related contract. In accordance with the risk\nmanagement process which the Investment Manager employs, this risk is\nminimised by only entering into transactions with counterparties which are\nbelieved to have an adequate credit rating at the time the transaction is\nentered into, by ensuring that formal legal agreements covering the terms of\nthe contract are entered into in advance, and through adopting a counterparty\nrisk framework which measures, monitors and manages counterparty risk by the\nuse of internal and external credit agency ratings and evaluates derivative\ninstrument credit risk exposure.\n\n \n\nThe maximum exposure to credit risk at 30 June is the carrying amount of the\nfinancial assets as set out below.\n\n 30 June 2026 Amounts due within 1 year $’000 30 June 2025 Amounts due within 1 year $’000 \n Derivative assets 1 40,961 14,935 \n Forward currency contracts 17,653 15,188 \n Securities sold for future settlement 8,597 3,389 \n Amounts receivable on settlement of derivatives 1,085 1,632 \n Amounts held at futures clearing houses and brokers 42,884 52,521 \n Cash and cash equivalents 32,829 9,551 \n CFD dividends receivable 1,286 2,235 \n CFD interest receivable 32 – \n Taxation recoverable 2,626 – \n Accrued income 668 2,166 \n Other receivables 39 82 \n 148,660 101,699 \n\n1.  Includes CFDs, options and future contracts.\n\nNone of these assets are impaired or past due at the reporting date.\n\nT\n\nhe Company primarily engages with counterparties that have strong credit\nratings and a proven track record of financial stability, thereby minimising\nthe risk of default. The creditworthiness of its counterparties and investment\npositions are reviewed on a regular basis. On this basis the Company has\nassessed the credit risk associated with its financial assets and concluded\nthat the likelihood of credit losses is minimal, and therefore, no provisions\nfor expected credit losses have been made.\n\n \nCollateral\nFor OTC and exchange traded derivative transactions, collateral is used to\nreduce the risk of both parties to the contract. Collateral is managed on a\ndaily basis for all relevant transactions and held in segregated collateral\naccounts. Collateral can be held by brokers on behalf of the Company to reduce\nthe credit risk exposure of the Company or held by the Company on behalf of\nbrokers to reduce the credit risk exposure of the brokers. All collateral\nreceived or pledged at reporting date is in form of cash. The value of\ncollateral received from brokers and pledged to brokers is shown below:\n\n 30 June 2026 30 June 2025 \n Collateral received $’000 Collateral pledged $’000 Collateral received $’000 Collateral pledged $’000 \n Bank of America Merrill Lynch International – – – 410 \n Goldman Sachs International Ltd 7,450 – 4,890 – \n J.P. Morgan Securities plc – 2,170 – 970 \n Morgan Stanley & Co. International Ltd 9,650 – – 640 \n HSBC Bank plc – 160 380 – \n UBS AG – 40,554 430 50,501 \n 17,100 42,884 5,700 52,521 \n  Derivative instrument risk\nThe risks and risk management processes which result from the use of\nderivative instruments, are set out in a Risk Management Process document.\nDerivative instruments are used by the Investment Manager for the following\npurposes:\n\n· to gain exposure to equity markets, sectors or individual investments;\n\n· to hedge equity market risk in the Company’s investments with the\nintention of mitigating losses in the events market falls;\n\n· to enhance portfolio returns by writing call and put options; and\n\n· to take short positions in equity markets, sectors or individual\ninvestments which would benefit from a fall in the relevant market price,\nwhere the Investment Manager believes the investment is overvalued. These\npositions distinguish themselves from other short exposures held for hedging\npurposes since they are expected to add risk to the portfolio.\n\nThe risk and investment performance of these instruments are managed by an\nexperienced, specialist derivative team of the Investment Manager using\nportfolio risk assessment tools for portfolio construction.\n\n \nDerivative instruments exposure sensitivity analysis\nThe Company invests in derivative instruments to gain or reduce exposure to\nthe equity market. An increase of 10% in the share prices of the investments\nunderlying the derivative instruments at the reporting date would have\nincreased the net profit after taxation for the year and increased the net\nassets of the Company by $17,254,000 (2025: increased the net profit after\ntaxation for the year and increased the net assets of the Company by\n$10,074,000). A decrease of 10% in share prices of the investments underlying\nthe derivative instruments would have had an equal but opposite effect.\n\n \nOffsetting\nTo mitigate counterparty risk for OTC derivative transactions, the ISDA legal\ndocumentation is in the form of a master agreement between the Company and the\nbrokers. This allows enforceable netting arrangements in the event of a\ndefault or termination event. Derivative instrument assets and liabilities\nthat are subject to netting arrangements have not been offset in preparing the\nStatement of Financial Position.\n\n \n\nThe Company’s derivative instrument financial assets and liabilities\nrecognised in the Statement of Financial Position and amounts that could be\nsubject to netting in the event of a default or termination are shown below:\n\n Related amounts not set 2026 \n off on SoFP 1 \n Financial assets Gross amount $’000 Gross amount of recognised financial liabilities set off on the SoFP 1 $’000 Net amount of financial assets presented on the SoFP 1 $’000 Financial instruments $’000 Margin account received as collateral $’000 Net amount $’000 \n CFDs 30,873 – 30,873 (17,855) (9,650) 3,368 \n Options 5,054 – 5,054 (2,556) – 2,498 \n Futures contracts 5,034 – 5,034 – – 5,034 \n Forward currency contracts 17,653 (17,465) 188 – – 188 \n 58,614 (17,465) 41,149 (20,411) (9,650) 11,088 \n\n1. Statement of Financial Position\n\n Related amounts not set 2026 \n off on SoFP 1 \n Financial liabilities Gross amount $’000 Gross amount of recognised financial assets set off on the SoFP 1 $’000 Net amount of financial liabilities presented on the SoFP 1 $’000 Financial instruments $’000 Margin account pledged as collateral $’000 Net amount $’000 \n CFDs (19,149) – (19,149) 17,855 – (1,294) \n Options (2,993) – (2,993) 2,556 – (437) \n Forward currency contracts (17,465) 17,465 – – – – \n (39,607) 17,465 (22,142) 20,411 – (1,731) \n\n \n\n Related amounts not set 2025 \n off on SoFP 1 \n Financial assets Gross amount $’000 Gross amount of recognised financial liabilities set off on the SoFP 1 $’000 Net amount of financial assets presented on the SoFP 1 $’000 Financial instruments $’000 Margin account received as collateral $’000 Net amount $’000 \n CFDs 10,649 – 10,649 (8,072) (810) 1,767 \n Options 3,944 – 3,944 (1,900) – 2,044 \n Futures contracts 342 – 342 (342) – – \n Forward currency contracts 15,188 (15,117) 71 – – 71 \n 30,123 (15,117) 15,006 (10,314) (810) 3,882 \n\n \n\n Related amounts not set 2025 \n off on SoFP 1 \n Financial liabilities Gross amount $’000 Gross amount of recognised financial assets set off on the SoFP 1 $’000 Net amount of financial liabilities presented on the SoFP 1 $’000 Financial instruments $’000 Margin account pledged as collateral $’000 Net amount $’000 \n CFDs (9,215) – (9,215) 8,072 640 (503) \n Options (2,432) – (2,432) 1,900 – (532) \n Futures contracts (4,137) – (4,137) 342 3,795 – \n Forward currency contracts (15,117) 15,117 – – – – \n (30,901) 15,117 (15,784) 10,314 4,435 (1,035) \n\n1. Statement of Financial Position\n  Fair Value Hierarchy\nThe Company is required to disclose the fair value hierarchy that classifies\nits financial instruments measured at fair value at one of three levels,\naccording to the relative reliability of the inputs used to estimate the fair\nvalues.\n\n \n\n Classification Input \n Level 1 Valued using quoted prices in active markets for identical assets \n 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 \n Level 3 Valued by reference to valuation techniques using inputs that are not based on observable market data \n\n \n\nCategorisation within the hierarchy has been determined on the basis of the\nlowest level input that is significant to the fair value measurement of the\nrelevant asset. The valuation techniques used by the Company are explained in\nNote 2(b). The table below sets out the Company’s fair value hierarchy.\n\n \n\n Financial assets at fair value through profit or loss Level 1 $’000 Level 2 $’000 Level 3 $’000 2026 Total $’000 \n Investments in equity securities 759,695 – – 759,695 \n Investee funds – – 7,750 7,750 \n Derivative instrument assets – CFDs – 30,873 – 30,873 \n Derivative instrument assets – forward currency contracts – 188 – 188 \n Derivative instrument assets – futures contracts 5,034 – – 5,034 \n Derivative instrument assets – options 5,021 33 – 5,054 \n 769,750 31,094 7,750 808,594 \n Financial liabilities at fair value through profit or loss \n Derivative instrument liabilities – CFDs – 18,774 375 19,149 \n Derivative instrument liabilities – options 2,523 470 – 2,993 \n 2,523 19,244 375 22,142 \n\nFinancial instruments classified under Level 2 are valued by reference to\ninputs other than quoted prices included in level 1 that are observable (i.e.\ndeveloped using market data) for the asset or liability, either directly or\nindirectly. The Level 2 instruments include forward currency contracts, over\nthe counter option contracts and contracts for difference.\n\n \n\n Financial assets at fair value through profit or loss Level 1 $’000 Level 2 $’000 Level 3 $’000 2025 Total $’000 \n Investments in equity securities 708,476 – – 708,476 \n Investee funds – – 4,385 4,385 \n Derivative instrument assets – CFDs – 10,649 – 10,649 \n Derivative instrument assets – forward currency contracts – 71 – 71 \n Derivative instrument assets – futures contracts 342 – – 342 \n Derivative instrument assets – options 3,846 98 – 3,944 \n 712,664 10,818 4,385 727,867 \n Financial liabilities at fair value through profit or loss \n Derivative instrument liabilities – CFDs – 9,215 – 9,215 \n Derivative instrument liabilities – futures contracts 4,137 – – 4,137 \n Derivative instrument liabilities – options 1,802 630 – 2,432 \n 5,939 9,845 – 15,784 \n\n \n\n Valuation basis for Level 3 Investment 30 June 2026 $’000 30 June 2025 $’000 \n Net asset value 7,750 4,385 \n Intrinsic valuation approach for CFDs on restricted assets (375) – \n 7,375 4,385 \n\nAs the key input into the valuation of Level 3 investments is official\nvaluation statements from the investee funds and the adjusted most recently\navailable published price, we do not consider it appropriate to put forward a\nsensitivity analysis on the basis that insufficient value is likely to be\nderived by the end users.\n\n \n\nThe following table summarises the change in value associated with Level 3\nfinancial instruments carried at fair value during the year:\n\n 30 June 2026 30 June 2025 \n Level 3 Level 3 \n Movements in level 3 investments during the year Non Derivatives $’000 Derivatives $’000 Non Derivatives $’000 Derivatives $’000 \n Opening balance 4,385 – 5,363 – \n Sales (740) – (1,138) – \n Transfers to Level 1 – – (1,466) – \n Transfers from Level 2 – (375) – – \n Realised gains/(losses) 694 – (7,589) – \n Net change in unrealised gains 3,411 – 9,215 – \n Closing balance 7,750 (375) 4,385 – \n\n \n\nThe Company’s holdings in non derivative Russian securities have been fair\nvalued at $nil as at 30 June 2026 (2025 : $nil) as a result of trading being\nsuspended on international stock exchanges. These non derivative Russian\nsecurities have an acquisition cost of $90,933,000 as at 30 June 2026 (2025:\n$90,933,000).\n\n \n\nThe Company’s policy is to recognise transfers in and transfers out of the\nfair value hierarchy level at the end of each accounting period. Financial\nassets or liabilities measured at fair value are reclassified between levels\nof the fair value hierarchy when changes in the valuation methodology justify\na different classification.\n\n \nRussian securities\nThe Company continues to hold investments in Russian securities, which are\nsubject to market, liquidity and valuation uncertainties arising from\nrestrictions affecting the Russian market.\n\nThe Company’s exposure to Russian securities as at 30 June 2026 has remained\nunchanged from 30 June 2025. Details of the holdings are set out in the table\nbelow.\n\n \n30 June 2026\n Security name Holdings Cost $’000 Fair value immediately prior to restrictions 28-Feb-22 $’000 Fair Value $’000 \n Gazprom 10,398,354 51,236 9,899 – \n Sberbank of Russia – preference shares 1,964,397 8,373 1,033 – \n Sberbank of Russia – common stock 589,205 1,457 308 – \n PhosAgro – common stock 266,417 9,530 16,312 – \n PhosAgro – GDR 5,150 9,530 16 – \n Novolipetsk Steel 1,990,470 5,704 7,663 – \n United Company Rusal 4,519,809 5,103 1,126 – \n 90,933 36,357 – \n  Capital Risk Management\nThe capital of the Company is represented by the equity attributable to\nholders of Participating Preference Shares. The Company’s objective when\nmanaging capital is to safeguard the Company’s ability to continue as a\ngoing concern in order to provide returns for shareholders and to maintain a\nstrong capital base to support the achievement of its investment objective.\n\n \n\nThe Board monitors and reviews the Company’s capital structure on an ongoing\nbasis and seeks to maintain an appropriate balance between the interest of\nshareholders and the ability to achieve the Company’s investment strategy.\n\n \n\nThe Company does not have any externally imposed capital requirements. The\nfinancial resources of the Company comprise its share capital, reserves and\ngearing, which are disclosed on the Statement of Financial Position. The\nCompany is managed in accordance with its investment policy and in pursuit of\nits investment objective, both of which are detailed in the Strategic Report.\nThe principal risks and their management are disclosed in the Strategic\nReport.\n\n \n\nThe Company’s gearing at the year end is set out below:\n\n 30 June 2026 \n Gross gearing Net gearing \n Exposure $’000 % 1 Exposure $’000 % 1 \n Investments 767,445 88.8 767,445 88.8 \n Long CFDs 572,585 66.3 572,585 66.3 \n Long futures contract 6,954 0.8 6,954 0.8 \n Long call options 19,404 2.2 19,404 2.2 \n Long put options 12,662 1.5 12,662 1.5 \n Total long exposures before hedges 1,379,050 159.6 1,379,050 159.6 \n Less: Hedged futures contract exposures (205,692) (23.8) (205,692) (23.8) \n Less: Hedged option exposures (10,413) (1.2) (10,413) (1.2) \n Total long exposures after the netting of hedges 2 1,162,945 134.6 1,162,945 134.6 \n Short CFDs 199,865 23.1 (199,865) (23.1) \n Short futures contract 23,282 2.7 (23,282) (2.7) \n Gross Asset Exposure/net exposure 1,386,092 160.4 939,798 108.8 \n Net Assets 864,003 864,003 \n Gearing 3 60.4% 8.8% \n\n1. Exposure to the market expressed as a percentage of Net Assets per the\nStatement of Financial Position.\n\n2. Hedges as defined within the Glossary in the Annua Report.\n\n3. Gearing is the amount by which Gross Asset Exposure/net exposure exceeds\nNet Assets expressed as a percentage of Net Assets.\n\n \n\n 30 June 2025 \n Gross gearing Net gearing \n Exposure $’000 % 1 Exposure $’000 % 1 \n Investments 712,861 92.4 712,861 92.4 \n Long CFDs 433,157 56.1 433,157 56.1 \n Long futures contract 16,965 2.2 16,965 2.2 \n Long put options 21,474 2.8 21,474 2.8 \n Long call options 12,313 1.6 12,313 1.6 \n Total long exposures before hedges 1,196,770 155.1 1,196,770 155.1 \n Less: Hedged futures contract exposures (160,910) (20.9) (160,910) (20.9) \n Less: Hedged option exposures (10,949) (1.4) (10,949) (1.4) \n Total long exposures after the netting of hedges 2 1,024,911 132.8 1,024,911 132.8 \n Short CFDs 180,705 23.4 (180,705) (23.4) \n Short futures contract 28,958 3.8 (28,958) (3.8) \n Short put options 680 0.1 (680) (0.1) \n Gross Asset Exposure/net exposure 1,235,254 160.1 814,568 105.5 \n Net Assets 771,628 771,628 \n Gearing 3 60.1% 5.5% \n\n1. Exposure to the market expressed as a percentage of Net Assets per the\nStatement of Financial Position.\n\n2. Hedges as defined within the Glossary in the Annual Report.\n\n3.  Gearing is the amount by which Gross Asset Exposure/net exposure exceeds\nNet Assets expressed as a percentage of Net Assets.\n  19. Transactions with the Managers and Related Parties\nFIL Investment Services (UK) Limited is the Company’s Alternative Investment\nFund Manager and has delegated portfolio management to FIL Investments\nInternational (“FII”). Both companies are Fidelity group companies.\n\n \n\nDetails of the current fee arrangements are given in Note 4 and Note 5. During\nthe year, the Company had the following transactions payable to FII:\n\n 30 June 2026 $’000 30 June 2025 $’000 \n Investment management fees 4,668 4,314 \n Marketing services 468 334 \n\nAt the year end, the following balances were accrued and outstanding to FII.\nThese balances are included within the other payables figure in Note 13.\n\n 30 June 2026 $’000 30 June 2025 $’000 \n Investment management fees 444 365 \n Marketing services 48 43 \n\nAs at 30 June 2026, the Board consisted of five non-executive Directors all of\nwhom are considered to be independent by the Board. None of the Directors has\na service contract with the Company.\n\n \n\nThe Directors’ beneficial interests in the share capital of the Company and\nthe annual fee structure from 1 July 2026 are shown in the Directors’\nReport.\n\n \n\nThe Directors received for the financial year fees totalling $307,241, (2025:\n$263,694). The breakdown of the fees and related party interests is shown in\nthe Directors’ Remuneration Report. Directors’ expenses for the year, as\nstated in Note 5, include travelling, hotel and other expenses which the\nDirectors are entitled to when properly incurred by them in travelling to,\nattending and returning from meetings and while on other business of the\nCompany.\n\n \n20. Ultimate Controlling Party\nIn the opinion of the Directors on the basis of the shareholdings advised to\nthem, the Company has no immediate or ultimate controlling party.\n\n \n21. Segment Information\nThe Directors have considered the basis on which information is presented to\nthem and have concluded that the Company is engaged in a single operating\nsegment, being the management of a diversified portfolio of investments in\nemerging markets.\n\n \n\nAll of the Company’s activities are interrelated, and each activity is\ndependent on the others. Accordingly, all significant operating decisions are\nbased on analysis of the Company operating in one segment.\n\n \n\nThe financial positions and results from this segment are equivalent to those\npresented in the financial statements of the Company as internal reports are\nprepared on a basis consistent with the measurement and recognition principles\nof IFRS.\n\n \n\nA breakdown of the Company’s financial assets at fair value through profit\nand loss is shown in the Country exposure of the Company’s portfolio above.\n\n \n\nThe Company is domiciled in Guernsey. All investment income is derived from\ninvestments in entities located outside Guernsey.\n\n \n22. Subsequent events\nNo significant events have occurred since the end of the reporting date which\nwould impact on the financial position of the Company disclosed in the\nStatement of Financial Position as at 30 June 2026 or on the financial\nperformance and cash flows of the Company for the year ended on that date.\n\n \nAlternative Performance Measures\nThe Company uses the following as Alternative Performance Measures which are\nall defined in the Glossary to the Annual Report.\n\n \nActive Share\nActive Share is a measure of the percentage which stock holdings in the\nCompany differ from the constituents of the benchmark, the MSCI Emerging\nMarkets Index. Active share is calculated by taking the sum of the absolute\ndifference between the weights of the holdings in the Company and those in the\nMSCI Emerging Markets Index and dividing the result by two. See The Year at a\nGlance inside the front cover of this report for further details.\n\n \nDiscount/Premium\nThe discount/premium is the difference between the NAV per Participating\nPreference Share of the Company and the share price and is expressed as a\npercentage of the NAV per Participating Preference Share. Details of the\nCompany’s discount are on the Financial Highlights.\n\n \nGearing\nSee Note 18 for details of the Company’s gearing.\n\n \nNet Asset Value (“NAV”) per Participating Preference Share\nSee the Statement of Financial Position and Note 16 for further details.\n\n \nOngoing charges ratio\nThe ongoing charges ratio has been calculated in accordance with guidance\nissued by the AIC as the total of management fees and other expenses expressed\nas a percentage of the average net assets throughout the year.\n\n 30 June 2026 30 June 2025 \n Investment management fees ($’000) 4,668 4,314 \n Other expenses ($’000) 2,206 1,644 \n Ongoing charges ($’000) 6,874 5,958 \n Average net assets ($’000) 786,510 715,976 \n Ongoing charges ratio 0.87% 0.83% \n  Total Return Performance\nNAV per share total return includes reinvestment of the dividend in the NAV of\nthe Company on the ex-dividend date. Share price total return includes the\nreinvestment of the net dividend in the month that the share price goes\nex-dividend.\n\nThe tables below provide information relating to the NAV per share and share\nprices of the Company, the impact of the dividend reinvestments and the total\nreturns for the years ended 30 June 2026 and 30 June 2025.\n\n \n\n 2026 Net asset value per share Share price \n 30 June 2025 875.15p 783.00p \n 30 June 2026 1,653.34p 1,530.00p \n Change in the year +88.9% +95.4% \n Impact of dividend reinvestment +3.4% +3.9% \n Total return for the year +92.3% +99.3% \n\n \n\n 2025 Net asset value per share Share price \n 30 June 2024 798.47p 703.00p \n 30 June 2025 875.15p 783.00p \n Change in the year +9.6% +11.4% \n Impact of dividend reinvestment +2.0% +2.3% \n Total return for the year +11.8% +14.0% \n\n \n\nThe Final Results Announcement is not the Company's statutory accounts. The\nabove results for the year ended 30 June 2026 are an abridged version of the\nCompany's full Annual Report and Financial Statements, which have been\napproved and audited with an unqualified report. The 2026 Financial Statements\nwill be filed with the Guernsey Financial Services Commission in due course.\n\nA copy of the above results announcement and the Annual Report will be\navailable on the Company's website at www.fidelity.co.uk/emergingmarkets\nwithin two working days.\n\nA copy of the Annual Report will shortly be submitted to the National Storage\nMechanism and will be available for inspection at:\nwww.morningstar.co.uk/uk/NSM\n\nThe Annual Report will be posted to shareholders later this month and\nadditional copies will be available from the registered office of the Company\nand on the Company's website: www.fidelity.co.uk/emergingmarkets where up to\ndate information on the Company, including daily NAV and share prices,\nfactsheets and other information can also be found.\n\nNeither the contents of the Company's website nor the contents of any website\naccessible from hyperlinks on the Company's website (or any other website) is\nincorporated into, or forms part of, this announcement.\n\nENDS\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPRr69327a-20261006","title":"REG-Fidelity Emerging Markets Limited: Final Results","author":"PR Newswire","ticker":"FEML","created":"2026-10-06T06:00:28.410Z","tickers":["FEML"],"exchange":"LSE","article_body":"Fidelity Emerging Markets Limited\nFinal Results for the year ended 30 June 2026\n\n \nPerformance Highlights  * Share price total return of +99.3% and NAV\ntotal return of +92.3% significantly outperforms the benchmark total return of\n+48.2%\n* Five-year performance comfortably clears hurdle for conditional tender offer\n* Enhanced investment tool kit adds significant value\n* The Board has announced a final dividend of $0.33 per Participating\nPreference Share.\n \n\nFor further information, please contact:\n\nGeorge Bayer\n\nCompany Secretary\n\n+44 20 7961 4240\n\nFIL Investments International\n\n \nFinancial Highlights\n 30 June 2026 30 June 2025 \n Assets as at 30 June \n USD \n Gross Asset Exposure 1 $1,386.1m $1,235.3m \n Equity Shareholders’ Funds $864.0m $771.6m \n NAV per Participating Preference Share 2 $21.94 $11.99 \n Dividend per Participating Preference Share $0.33 $0.26 \n Dividend Yield 1.6% 2.4% \n Gross Gearing 2,3 60.4% 60.1% \n Net Gearing 2,4 8.8% 5.5% \n Exchange Rate (USD to GBP) 1.33 1.37 \n GBP \n Gross Asset Exposure 1,5 £1,044.3m £901.4m \n Equity Shareholders’ Funds 5 £651.0m £563.1m \n NAV per Participating Preference Share 2,5 £16.53 £8.75 \n Share Price and Discount as at 30 June \n Participating Preference Share Price £15.30 £7.83 \n Discount to NAV per Participating Preference Share 7.4% 10.5% \n Number of Participating Preference Shares held outside Treasury 39,373,154 64,342,245 \n Earnings for the year ended 30 June \n Revenue Earnings per Participating Preference Share 6 $0.32 $0.31 \n Capital Earnings per Participating Preference Share 6 $8.23 $1.52 \n Total Earnings per Participating Preference Share 6 $8.55 $1.83 \n Ongoing charges ratio 2 0.87% 0.83% \n\n1 The value of the portfolio exposed to market price movements.\n\n2 Alternative Performance Measure – refer below and to the Glossary of\nTerms.\n\n3 Gross Asset Exposure less Equity Shareholders’ Funds expressed as a\npercentage of Equity Shareholders’ Funds.\n\n4 Net Market Exposure less Equity Shareholders’ Funds expressed as a\npercentage of Equity Shareholders’ Funds.\n\n5 The conversion from USD to GBP is based on exchange rates prevailing at the\nreporting dates.\n\n6 Calculated based on weighted average number of participating preference\nshares in issue during the year.\n  Chairman‘s Statement\n \n\nI am pleased to present your Company’s 37th annual report. As we reach the\nfifth anniversary of Fidelity’s appointment as manager, it is gratifying to\nbe able to report a fourth successive year in which Fidelity Emerging Markets\nLimited (‘the Company’)’s net asset value (‘NAV’) total returns have\nbeaten the Company’s benchmark, the MSCI Emerging Markets Total Return Index\n(‘the Index’), and a third year of strong absolute returns in both the NAV\nand the share price. While NAV performance can be seen as the best measure of\na fund manager’s skill, the share price arguably represents investors’\nrecognition of that skill. Your Board and I are delighted that the Company’s\nshare price total return has outperformed its NAV total return for a third\nyear in a row, with both outperforming the Index. This is a resounding\nvindication of your Portfolio Managers, Nick Price and Chris Tennant, and\ntheir broad and flexible investment approach, not just an output of an\nincreasingly positive period for emerging markets as a whole. Over the 12\nmonths under review the performance has been truly stellar, and the Board and\nI would like to congratulate the Portfolio Managers and their team on these\nresults and thank them for their efforts. In fact, performance has been so\nstrong that your Company ranked in the top 10 of all investment trusts (over\n200 of them) for NAV and share price total return performance over both one\nand three years to 30 June 2026, ahead of all peers in the Association of\nInvestment Companies’ (AIC) Global Emerging Markets sector.\n\n \nOverview\nDuring the 12-month period to 30 June 2026, the Company’s NAV total return\nwas 92.3% in GBP terms, compared with 48.2% for the Index. The share price\ntotal return was 99.3% – effectively doubling investors’ money – while\nthe discount to NAV narrowed from 10.5% at the beginning of the period to 7.4%\nat the end, spending most of the year in single figures. Performance was\nstrong across the whole period, despite continued geopolitical tensions,\nincluding the war in Iran, which has put considerable upward pressure on\nenergy prices – and inflation more broadly – throughout much of the world.\n\n \n\nI noted in my Chairman’s Statement in last year’s annual report that\nsentiment towards emerging markets appeared to have turned a corner after a\nlong period in which US equities had been preeminent. The return from the\nIndex in the period under review is further evidence of this; indeed, it is\nroughly double the 25.8% total return of the S&P 500 index (Net Total Return,\nGBP), the main US benchmark. However, I firmly believe that it would be wrong\nfor investors to conclude that such strong relative and absolute performance\nmean further upside is limited. After 18 years in a consolidation pattern,\nemerging markets are only just stepping into the spotlight on the world stage,\nhaving played second fiddle ever since the global financial crisis.\n\n \n\nThe magnitude of your Company’s outperformance in the year under review is\ntestament both to the Portfolio Managers’ skill in stock picking and their\nfull deployment of the broad investment toolkit available to them. (For a full\nexplanation of the toolkit, please see above) It is particularly notable that\nin a strongly positive year for the market as a whole, the short positions in\nthe portfolio still added value, accounting for around a quarter of the excess\nreturn versus the Index. Yield enhancement strategies (selling Options to\ngenerate income) and the allocation to small- and mid-sized companies –\na notable differentiating factor versus peers – also contributed. The\nability to take such positions is a key advantage of the closed-end structure,\nwhile the execution of the strategy is greatly facilitated by the research\nefforts of Fidelity’s large team of locally based emerging markets analysts,\nas well as derivatives and risk management specialists.\n\n \n\nThe portfolio continues to include Russian assets which are currently valued\nat zero given the inability to trade them. Any future resolution of the\nconflict and relaxation of applicable sanctions could therefore provide an\nuplift to NAV if those assets were able to recover realisable value. Further\ndetails can be found below.\n\n \n\nThe Portfolio Managers’ report on the following pages contains a wealth of\ndetail on the contributors to absolute and relative performance in the period\nunder review. However, I would draw attention particularly to the very high\nactive share (a measure of how much the portfolio differs from the Index) and\nthe skill with which the team has managed volatility in semiconductors. With\nthe rapid development of artificial intelligence (‘AI’) technologies\ncontinuing to dominate the headlines, having appropriate exposure to large\nindex constituents such as Korea’s SK Hynix and Taiwan Semiconductor\nManufacturing Company has been essential. Yet AI, with its associated need for\nlarge-volume data storage and power, is not just a technology story; it is\nalso a resources story, and your Portfolio Managers’ stock picking within\nthe materials and industrials sectors has also contributed steadily to returns\nwhile the majority of investors have been more narrowly focused on IT.\n\n \nDue diligence trip\nIn April 2026, your Board was fortunate to have the opportunity to visit Hong\nKong and China with Fidelity’s team. In September 2025, Nick Price relocated\nfrom London to Hong Kong, which is a hub for Fidelity International’s\nactivity in Asia. With Asia representing around 80% of the emerging markets\nuniverse by market capitalisation, it is an important part of the opportunity\nset, and it was good to see Nick in his new home and meet the large team of\nlocally based analysts. During the trip, we were able to see the investment\nteam working together, and to hear from them and some of the Company’s key\nholdings about their confidence in the future. We also had an extensive\nmeeting with the risk management team – the largest outside the UK – and\nwere both encouraged and reassured by the robustness and highly detailed\nnature of their processes.\n\n \nDividend\nThe Board is recommending a final dividend of $0.33 per Participating\nPreference Share for the year ended 30 June 2026 (2025: $0.26) for approval by\nshareholders at the Annual General Meeting (‘AGM’) to be held on 1\nDecember 2026. As ever, I would highlight that the Board does not have a\nfixed dividend policy, because income is an output rather than an aim of the\ninvestment process, and therefore no guarantee can be offered as to the level\nof any future dividends.\n\n \nBoard composition\nAs noted in the half-year report, Katherine Tsang completed nine years’\nservice (the recommended maximum under the AIC Code of Corporate Governance)\nin July 2026, and as such she intends to stand down at the 2026 AGM. A search\nhas been completed to find a suitably qualified individual to succeed her, the\nBoard is pleased to announce the appointment of Dr Shefaly Yogendra and a\nseparate announcement in relation to this appointment will be made shortly.\nThere have been no other changes to the Board of Directors in the period under\nreview.\n\n \nDiscount management\nThe discount to NAV narrowed during the year, beginning at 10.5% and ending at\n7.4%, as noted above. After narrowing steadily between July and October 2025\nto around 6%, the discount remained broadly between 5% and 10% for the\nremainder of the period.\n\n \n\nThe Board remains committed to using share repurchases to help reduce the\nvolatility of discount to NAV. Any share repurchases are completed at prices,\nwhich are accretive to NAV for ongoing shareholders. During the year under\nreview, we bought back 8,527,914 shares in the market (excluding the c.25% of\nshares in issue repurchased from Strathclyde Pension Fund in November 2025),\nrepresenting 13.2% of shares in issue at the start of the period. At the AGM\non 1 December 2026, we will seek to renew the existing annual authority to\nrepurchase up to 14.99% of our Participating Preference Shares.\n\n \n\nIt is gratifying that although the pace of regular buybacks has remained\nvirtually unchanged compared with the previous year, strong performance has\nmeant that total assets and market capitalisation have both risen\nsubstantially. This greater scale supports liquidity and helps maintain the\nCompany’s relevance to wealth managers and other investors for whom market\nliquidity is an important consideration. Fidelity has also seen increased\nengagement from wealth managers during the year.\n\nWe are pleased to be a popular choice among retail investors. Retail investors\nrepresented 18.2% of the shareholder base on 30 June 2026, compared with 4.1%\non 30 June 2025, and the Company featured on several investment trust\nbest-selling lists during the period. The Board welcomes this broadening of\nthe shareholder base and the increased participation of retail investors.\nFidelity has continued to raise the Company’s profile through its marketing,\nmedia, social media and distribution activity. The Board will continue to\nsupport activity aimed at attracting new investors, broadening demand for the\nCompany’s shares and, over time, supporting a narrower discount.\n\n \nExtraordinary General Meetings\nThe Company held two Extraordinary General Meetings during the financial year.\nThe first, in October 2025, approved the Strathclyde Repurchase, which was\ncovered in detail in last year’s Chairman’s Statement. The repurchase\nincreased NAV per share by approximately 4.5%.\n\n \n\nThe second EGM was held in May 2026 after 63% of the share buyback authority\ngranted at the 2025 AGM had been used. Shareholders approved a renewed\nauthority to repurchase up to 6,201,500 shares, representing 14.99% of the\nshares in issue at the latest practicable date. The resolution was approved by\n100% of votes cast, on a turnout of 71%.\n\n \nAnnual General Meeting\nThis year’s AGM will be held on 1 December 2026 at 8:30 a.m. at the\nregistered office of the Company, Level 3, Mill Court, La Charroterie, St\nPeter Port, Guernsey GY1 1EJ. The Notice of the AGM, containing full details\nof the business to be conducted at the meeting. Your attention is also drawn\nto the Corporate Governance section of the Directors’ Report where\nresolutions relating to special business are explained. Electronic proxy\nvoting is now available and shareholders are encouraged to submit voting\ninstructions using the web-based voting facility at www.eproxyappointment.com\nand for institutional shareholders via the CREST system, CREST messages must\nbe received by the issuer’s agent (ID number 3RA50) not later than\n8:30 a.m. on 29 November 2026. In order to use electronic proxy voting,\nshareholders will require their shareholder registration number, control\nnumber and PIN. If you do not have access to these details please contact the\nCompany’s Registrar, Computershare; their contact details can be found in\nthe Annual Report.\n\n \nArticles of Incorporation\nThe Board is proposing to replace article 17 of the articles of incorporation\nrelating to the determination of net asset value and the definition of the\n“Valuation Day”. These changes simplify these provisions and will allow\nthe Directors to make amendments to the timing and methodology of determining\nthe net asset value without updating the articles. They will allow the timing\nto be regularised with the UK time zone to make the process of determining and\nreporting more efficient. However, it is intended to continue to release the\nnet asset value on a daily basis and there is no current intention to change\nthe methodology for the calculation.\n\n \n\nA full tracked version of all the changes proposed to the Articles is\navailable at\nhttps://investment-trusts.fidelity.co.uk/fidelity-emerging-markets. The\nprincipal changes proposed to the Articles are set out in more detail in the\nDirectors’ Report.\n\n \nOutlook\nOne of the relative headwinds facing emerging markets in recent years has been\ninvestor appetite, which has been far more focused on developed markets, most\nparticularly the US. While in the long-term stock market performance is driven\nmainly by corporate earnings, in the short term it may be driven by momentum,\nas the weight of money pushes share prices up (or down). However, to anyone\nsuspecting that they may have missed the boat after such a stellar year for\nyour Company and its investment universe, I would point out two things. First,\nUK investors have in fact continued to pull money out of emerging markets\nfunds in aggregate during the year under review: figures from the Investment\nAssociation (the industry body for UK investment managers) show that a net\n£882m was withdrawn from global emerging markets funds between July 2025 and\nJune 2026, despite six months of positive net flows between October and March.\nMeanwhile, the North America sector (which is overwhelmingly US rather than\nCanada) saw net inflows of over £500m. Despite the net outflows from emerging\nmarkets, your Board remains confident that emerging markets are at the\nfoothills of what can be achieved over the coming years. The second thing is\nthat emerging markets as a group are on a far sounder economic footing than\nmost large developed markets, which are beset by geopolitical tensions,\ngroaning under the weight of enormous government debt and battling food and\nenergy price inflation, all of this while struggling to generate meaningful\neconomic growth or productivity gains. While developed markets are still\nreaping the whirlwind of Covid-era stimulus, emerging markets have gone\nthrough the economic pain of the pandemic and are leaner, fitter and more\nself-sufficient as a result. So even after a standout year in the markets, I\nwould venture that the best is yet to come from the huge and diverse\nopportunity set in which your Company invests.\n\n \n\nIt is, however, an inescapable truth that markets can go down as well as up.\nThis is one of the reasons why Nick, Chris and the team deploy such a broad\nset of tools, including the ability to take short positions, as well as\nensuring that the Company’s holdings are well diversified across countries,\nthemes and sectors. The resulting portfolio looks genuinely different from the\nmajority of peers and is arguably better positioned to offer a degree of\ndownside protection should a period of market consolidation or\nretrenchment occur.\n\n \n\nFollowing the five-year performance conditional tender offer calculation date\non 30 September 2026, I can confirm that the Company’s NAV total return\noutperformed the Index over the relevant five-year period and, as a result,\nthe 25% tender offer will not proceed. It is pleasing to see this result and\nthe sustained performance, discipline and rigour of the investment process\nover a longer performance period. Your Board plans to renew the conditional\ntender offer on the same terms. The new five year review period will be 1 July\n2026 to 30 June 2031, this period has been adjusted slightly to align with the\nCompany’s financial year end.\n\n \n\nThe Company has committed to hold a continuation vote every five years. This\nallows shareholders the opportunity to decide on the long-term future of the\nCompany. The next continuation vote will take place at this year’s AGM on\nTuesday, 1 December 2026. Given the strong performance of the Company your\nBoard unanimously recommends that shareholders vote in favour\nof continuation.\n\n \nHeather Manners\nChairman\n\n5 October 2026\n  Portfolio Managers’ Review Question\nHow did the Company perform over the year to 30 June 2026, and how should\nshareholders assess performance over the full period since Fidelity’s\nappointment?\n\n \nAnswer\nThe investment company delivered strong results over the year, generating a\nNAV total return of 92.3% vs the Index which returned 48.2%. It has been\npleasing to see the Company’s enhanced ‘toolkit’ add significant value\nover the period, with positive contributions from the long and short books.\nThe latter contributed c.9% to active return, a notable outcome given the\nstrength of emerging markets over the period. Furthermore, yield enhancement\n(selling options to generate income) and the exposure to smaller companies\nadded value. In addition to robust investment performance, there was an uplift\nto the NAV per share of approximately 4.5% following the repurchase of\nStrathclyde Pension Fund’s holding in Q4 2025.\n\n \n\nOver the full period since Fidelity’s appointment on 4 October 2021, similar\ntrends can be seen – the investment company has generated 14.8% NAV returns\non an annualised basis, outperforming the Index which returned 10.2%,\nsupported by strong stock picking and the portfolio’s enhanced investment\npowers (including short positions, yield enhancement, and the smaller\ncap exposure).\n\n \nQuestion\nWhat were the principal drivers of performance over the year?\n\n \nAnswer\nAt the sector level, Information Technology (IT) was a significant\ncontributor, reflecting both strong stock selection and portfolio positioning\nduring a period when optimism around the beneficiaries of artificial\nintelligence (AI) investment was an important driver of emerging market\nequities. Stock selection in materials and industrials also contributed\npositively, while exposure to financials detracted.\n\n \n\nAt the country level, Taiwan contributed positively through a combination of\nstock selection and positioning, while lower exposure to mainland China also\nadded value, during a period when the market lagged the wider index. Stock\nselection in Korea was another positive contributor. Stock selection in South\nAfrica and exposure to Indonesia were the main detractors.\n\n \n\nAt the stock level, the top contributor overall was the position in\nSK Square, the holding company for Korean memory chip producer SK Hynix,\nwhich rallied on strong earnings expectations and as demand for memory chips\ncontinued to exceed available supply. Taiwan’s Elite Material, a producer of\ncopper clad laminate, a specialist material used in printed circuit boards,\nalso contributed positively, supported by continued AI server-driven demand.\nElsewhere, several gold miners featured among top contributors, including\nSouth African mid-cap Pan African Resources and Brazil’s Aura Minerals,\nunderpinned by strength in gold as strong retail demand and a shift in central\nbank reserves away from US Treasuries lifted prices in the latter half of\n2025.\n\n \n\nKey detractors included Naspers, the South African holding company with a\nstake in China’s Tencent, which declined over concerns that Tencent is\nfalling behind peers in AI, although this position was partly offset by the\nunderweight exposure to Tencent itself. Several positions in financials also\nfeatured among top detractors, including Georgia’s TBC Bank, which suffered\nfrom weakness in the Uzbekistan segment of the business, and Indian SME lender\nFive Star Business Finance, which declined due to concerns over weaker asset\nquality.\n\n \nQuestion\nWhat were the most significant portfolio changes during the year, and what\ndrove those decisions?\n\n \nAnswer\nOver the year, we increased exposure to technology. Here, exposure has been\nfocused on technology hardware companies in Taiwan, such as Wiwynn, designer\nand manufacturer of servers, and memory chip producers in Korea, where strong\ndemand is supporting rapid earnings growth. Notably, exposure was added to\nhigh-conviction names in both markets following the outbreak of the conflict\nin the Middle East in March, when we looked to take advantage of the\nindiscriminate sell-off to build positions at more attractive valuations.\n\n \n\nConversely, whilst we remain positive on the outlook for copper and gold, we\nreduced our overweight to materials over the latter half of the period as we\nlooked to take profits in strong performers. For example, the position in\nSouth African gold miner AngloGold Ashanti was sold to reinvest the proceeds\nin companies with a more attractive balance of potential return and risk.\n\n \n\nWe have also actively adjusted the portfolio’s China exposure over the\nperiod. With weakness in the property sector continuing to weigh on consumer\nconfidence, we exited several consumer holdings, such as sportswear brand Anta\nSports, and reallocated capital to industrial companies in areas such as\nbatteries and power equipment, where innovation is strong and many companies\nare seeing rapid growth in export markets. One example is Sinotruk, a leading\nmanufacturer of heavy-duty trucks with around 26% domestic market share, which\nis experiencing strong export growth in Africa.\n\n \nQuestion\nThe Company has access to a broader investment toolkit than its peers. How did\nthat flexibility help you capture opportunities and manage risk during\nthe year?\n\n \nAnswer\nIt has been a strong year for the short book, which contributed ~9% to\nrelative performance (excluding short index positions) over the period. One\narea in which we have used short positions is the materials sector, where we\nlooked to capitalise on precious metal miners whose valuations had risen\nsharply despite weak operating performance or low-quality mining assets. This\nalso allowed us to manage the portfolio’s overall bet size within precious\nmetals, where the portfolio holds several high conviction long positions.\n\n \n\nThe Company’s additional flexibility also helped us to manage risk during\nthe year. For example, we bought call options (which benefit from share prices\nincreasing) on select oil and gas producers following the outbreak of the\nconflict in the Middle East, which allowed us to react nimbly to a changing\nmarket environment and manage the portfolio’s underweight exposure to oil.\n\n \nQuestion\nFidelity’s global research capability is an important part of the investment\nproposition. Can you give examples of how inputs from Fidelity’s research\nanalysts have helped build conviction?\n\n \nAnswer\nThe breadth and depth of Fidelity’s extensive research platform play a\ncritical role in helping us understand the wide range of emerging market\ncompanies in which we can invest. We can draw on specialist research across\nboth emerging and developed markets, as well as the expertise of our team of\nshorting analysts.\n\n \n\nA key benefit of this platform is the ability to combine detailed emerging\nmarket company research with insights into the developed markets that\ninfluence demand. Within technology, for example, we complement the work of\nour dedicated emerging market analysts with inputs from Fidelity’s US\ntechnology analysts, helping us assess the sustainability of AI investment –\na critical driver of our outlook on emerging market tech companies. The same\ncan be said for our view on key commodities. While our emerging market mining\nanalysts assess the prospects for individual copper producers, for example,\nanalysts covering EV, power grid and technology companies help us build a\nbroader view of long-term copper demand.\n\n \n\nFidelity’s extensive research resource also enables us to uncover smaller\ncompanies ‘off the beaten track’, where limited research coverage from\nbrokers and investment banks can create greater potential for mispricing,\nbroadening the opportunity set. One example is Orizon, a Brazilian waste\nmanagement business which operates in local monopolies with scope to benefit\nas the use of formal landfill services increases.\n\n \nQuestion\nTravelling to meet companies across Emerging Markets is a key part of the\ninvestment process. How have insights gleaned from travel influenced portfolio\npositioning during the year?\n\n \nAnswer\nWe believe there is no substitute for meeting companies at their headquarters,\nwhere we often gain additional insights not only from meeting senior\nmanagement but also from speaking with different division heads or seeing a\ncompany’s assets first-hand. Travel is therefore an important part of our\ninvestment process, and we have made several trips across emerging market\ncountries this year, including to China, Taiwan, Korea and South Africa among\nother markets. Each of these trips has influenced the portfolio in some\nway or another.\n\n \n\nOur trip to South Africa, for example, resulted in a new position in Capitec,\na digital bank with robust earnings growth and scope to further increase\nrevenue from its large, growing user base. Our meeting with the firm’s Head\nof Technology highlighted its continued investment in fraud prevention and the\nstrength of its technology platform. Visiting individual branches also helped\nbuild conviction in Capitec’s branch expansion strategy, with biometric\nverification helping it operate branches more efficiently.\n\nSimilarly, our trip to Taiwan resulted in a new position in Unimicron, the\nworld’s largest manufacturer of ABF substrate, a specialist material used in\nelectronics. Our one-to-one meeting with management gave us greater conviction\nin the AI-driven substrate upcycle, supported by insights into the\ndifferentiated nature of the current growth cycle, driven primarily by AI and\nhigh-performance computing infrastructure, relative to less durable cycles we\nhave seen in the past, which have historically been driven by broad consumer\nelectronics demand.\n\n \nQuestion\nHow have you positioned the portfolio to benefit from the global investment\ncycle in artificial intelligence?\n\n \nAnswer\nAI is one of the key investment themes in the emerging market opportunity set\nat the moment, and we have positioned the portfolio to gain exposure to AI\ninvestment via several direct beneficiaries, including hardware and memory\nchip producers. Within memory chip producers, the portfolio has exposure to\nKorean producers SK Hynix and Samsung Electronics (as well as their holding\ncompanies SK Square and Samsung C&T) – investment in AI and rising use of AI\napplications are driving strong memory chip demand, which continues to outpace\nsupply, whilst barriers to entry remain high. Although today’s exceptionally\nhigh earnings are unlikely to be sustained indefinitely, the decommoditisation\nof memory and the shift towards longer term contracts with pricing floors and\nceilings means the sector is becoming less cyclical than we have seen\nhistorically, with significant visibility over pricing for the\nnext few years.\n\n \n\nThe portfolio also has exposure to Taiwanese hardware companies in the AI\nsupply chain, where there are many high-quality businesses operating in\nmonopolistic market positions and delivering strong revenue growth at more\nattractive valuations than their US peers. One example is Accton, a\nmanufacturer of switches used to direct data traffic between chips in\ndatacentre racks, which benefits from stronger returns on assets and margins\nthan its US-listed counterpart Celestica, but trades at a\nsignificant discount.\n\n \n\nThe portfolio is also well-positioned to benefit as AI adoption broadens\nbeyond the initial infrastructure buildout, with exposure to potential\nbeneficiaries such as Chinese internet platform Tencent, whose broad\ndistribution network should support the rollout of AI tools to customers at\nrelatively low cost. Conversely, we are cognisant of the potential ‘AI\nlosers’ within the market, with scope to benefit from these companies via\nshort positions. For example, the Company is short several Asian IT services\ncompanies, whose business models rely on lower labour costs and could face\ndisruption from AI.\n\n \nQuestion\nIn which countries or sectors do you see the most compelling opportunities\nthat are not yet fully appreciated by the market?\n\n \nAnswer\nThere are several markets which offer significant value in EM. Indonesia is\none example – political uncertainty and the threat of an MSCI Indices\ndowngrade from emerging market to frontier-market status have driven a broad\nfall in valuations, leaving high-quality consumer businesses trading on\nhistorically low valuations. One name we hold is Alfamart, a mid-cap grocery\nretailer operating in a duopoly, with a long runway for growth given\nIndonesia’s low level of formal retail penetration.\n\n \n\nWe also see opportunity in Brazil. Political uncertainty and weak fiscal\ndiscipline have driven a reduction in valuations, leaving attractive stock\npicking opportunities among high-quality, well-managed businesses,\nparticularly within the mid-cap space. With elections in October, the balance\nof potential risk and reward looks attractive, with limited downside given low\nvaluations.\n\n \n\nAt the sector level, there is value to be found in financials, especially in\nsmaller emerging market and frontier markets, which are often too small to\nattract meaningful competition. An example is mid-cap TBC Bank, a\nwell-capitalised Georgian bank operating in a duopoly, which trades on a\nmid-single digit earnings multiple despite consistently attractive levels\nof profitability.\n\n \nQuestion\nWhat has been the most important lesson from the year, and how has it\nstrengthened the portfolio?\n\n \nAnswer\nMarket volatility over the year has reinforced our long-standing conviction in\nthe importance of a disciplined approach to portfolio construction. We assign\na target price to every stock in the portfolio, with the potential return to\nthat target helping us assess risk-reward and inform position sizing, among\nother inputs. This framework guided portfolio decisions throughout the year.\nWe added to high-conviction Korean and Taiwanese technology holdings during\nperiods of indiscriminate weakness, where the potential return to our target\nprices increased, while trimming select materials and technology names after\nstrong performance brought them closer to our assessment of fair value. This\ndiscipline supported portfolio performance, allowing us to use a particularly\nvolatile period opportunistically and ensure capital was continually\nreallocated towards the most attractive ideas.\n\n \n\nWe have also made continued thoughtful use of index hedging to manage overall\nportfolio risk. While the opportunity set among individual stocks remains\nrich, we have been mindful of the residual market, country and sector\nexposures created by our stock selection. As a result, while shareholders may\nsee meaningful gross positions in areas such as technology, index hedges can\nmaterially reduce the portfolio’s effective exposure and associated risk.\nAlongside active profit-taking as positions perform, this means the underlying\nrisk can be lower than headline long-book exposures might suggest.\n\n \nQuestion\nWhy should investors consider allocating to emerging markets today?\n\n \nAnswer\nThere are several fundamental reasons why emerging markets look well-placed\ntoday. Emerging markets sit at the centre of several powerful structural\ntrends: Taiwan and Korea are critical to the global AI hardware supply chain;\nhigh tech Chinese industrial companies are driving innovation in areas such as\nbatteries and power equipment; and the commodity backdrop remains\nconstructive, with higher metal prices supporting commodity exporting\ncountries across Latin America and Africa. The macroeconomic backdrop also\nlooks robust, with many emerging market countries benefitting from stronger\nfiscal positions relative to developed markets. Despite these tailwinds,\nvaluations remain compelling – much of the recent rally in markets has\nreflected higher company earnings expectations rather than rising valuation\nmultiples, leaving the market still trading at approximately a 40% discount to\ndeveloped markets.\n\n \n\nIn addition, the market is highly bifurcated – we have seen valuations\ndecrease in the cheapest markets, such as Brazil and Indonesia, whilst\ntech-heavy markets such as Taiwan have become more expensive. Similarly,\nwhilst many pockets of the market stand to benefit from structural and\ncyclical trends, there are also several more challenged areas, from Asian IT\nservices to Chinese banks. This dispersion creates a fertile ground for stock\npicking, with significant scope to add value through both long and short\npositions.\n\n \n\nThat said, emerging markets are not without their risks, as illustrated by the\nrecent geopolitical tensions in the Middle East. However, with a supportive\nmacroeconomic backdrop and several key drivers supporting earnings growth, we\nthink the case for investing in emerging markets today is particularly\ncompelling.\n\n \n\nNick Price\nChris Tennant\n\nPortfolio Managers\n\n5 October 2026\n  Investment Toolkit\nFidelity Emerging Markets Limited is an all-cap Global Emerging Markets\nstrategy with enhanced investment powers which seeks to exploit a broad range\nof opportunities. As opposed to more traditional long-only funds, the Company\nadopts an active ‘extension’ investment style with the strategy\nbenefitting from an expanded toolset which allows the portfolio managers to\nemploy long and short extensions using derivatives as and when high conviction\nideas are identified:\n\n \n\nEquities: The Company predominantly invests in equity securities that offer a\nsignificant degree of absolute upside from prevailing market prices. The\nportfolio managers will seek opportunities across the market cap spectrum,\ngeographies, and consider listed companies, initial public offerings and\nunlisted investments.\n\n \n\nLong extensions: Derivatives are used to provide additional exposure to stocks\nwith the greatest upside potential and to offset the reduction in equity\nexposure introduced by the Company’s short positions. Most of the long and\nshort derivative exposure is currently achieved through Contracts for\nDifference (“CFDs”).\n\n \n\nShort extensions: Derivatives are used to achieve the economic effect of a\nshort position in a security which the portfolio managers believe is\novervalued. Short positions are implemented on an opportunistic basis for up\nto approximately 30% of total Net Assets under normal market conditions.\n\n \n\nOther instruments: The Portfolio Managers can opportunistically access other\nderivative instruments such as options to enhance the Company’s returns or\nmanage its risk profile. An example of return enhancement would be the sale of\ncall options against holdings in the fund in high volatility environments, to\ncapture the option premium, whilst also providing an efficient exit from the\nposition at a strike price equivalent to the stock’s target price. An\nexample of risk control would be the purchase of appropriate index put options\nin lower volatility environments to protect the Company against negative\nmovements in equity markets, where such portfolio insurance can be purchased\nat an attractively low premium.\n\n \nHow this fits with our investment philosophy\nWe believe that many emerging market companies can sustain high levels of\neconomic growth for years to come, driven by attractive demographic profiles,\nimmature markets, an abundance of untapped natural resources, and generally\nlow levels of indebtedness. However, whilst these positive attributes provide\na fertile environment for companies to grow their earnings, it is critical to\nensure that each company we invest in can generate superior and sustainable\nreturns on assets that permit them to fund the growth of their business,\nwithstand competitive pressures and achieve attractive returns for\nminority shareholders.\n\n \n\nWith this in mind, we define high quality companies as those that exhibit:\n\n· Quality – high quality, well capitalised companies capable of achieving\nsuperior returns on assets, and where strong free cash flow generation can be\nused to either self-fund future growth or pay dividends to shareholders.\n\n· Consistency of returns – dominant companies that can maintain superior\nlevels of growth and profitability resulting from a sustainable competitive\nadvantage, such as market share, technology, or cost leadership; companies\nwhich exhibit a solid track record of delivering attractive total shareholder\nreturns over time.\n\n· Reasonable price – attractive valuations that understate the intrinsic\nvalue of a company. Target prices are determined for every stock considered\nfor the portfolio, reflecting each company’s sustainable level of earnings\npower across the economic cycle and an appropriate valuation multiple.\n\n \n\nConversely, it is those weaker peers who are unable to compete with the\nstrongest franchises that are likely to fall by the wayside. Using short\npositions, these weaker businesses form some of the additional investment\nopportunities that we can take advantage of, as an additional source of\nperformance.\n  Spotlight on Top 10 holdings\nas at 30 June 2026\nBased on Asset Exposure expressed as a percentage of Net Assets. Asset\nExposure comprises the value of direct equity investments plus market exposure\nto derivative instruments.\nTaiwan Semiconductor Manufacturing (TSMC)\n % of Net Assets: 14.9% \n\nTSMC is a leading Taiwanese semiconductor manufacturer. Its advanced\ntechnology and manufacturing capabilities support a strong competitive\nposition and attractive returns on capital.\n\n \nSamsung Electronics\n % of Net Assets: 10.6% \n\nSamsung Electronics is a diversified Korean technology company. It is one of\nthe world’s largest manufacturers of memory chips and also has significant\npresence in mobile phones, displays and consumer electronics.\n\n \nSK Hynix\n % of Net Assets: 7.5% \n\nSK Hynix is a leading Korean manufacturer of memory chips used in computers,\nsmartphones and data centres, with a strong position in the advanced memory\nproducts required for artificial intelligence applications.\n\n \nSK Square\n % of Net Assets: 4.9% \n\nSK Square is a Korean holding company, whose principal investment is a\nsignificant stake in SK Hynix, alongside interests in a range of other digital\nand technology companies.\n\n \nNaspers\n % of Net Assets: 2.9% \n\nNaspers is a South African holding company specialising in internet\ninvestments, including online classifieds, payments and financial technology,\nand food delivery. Its portfolio includes a significant investment in Chinese\ntechnology company Tencent.\n\n \nElite Material\n % of Net Assets: 2.9% \n\nElite Material is a Taiwanese manufacturer of copper clad laminate, a\nspecialist material used to make printed circuit boards. Its products are\nincreasingly used for high performance computing and artificial intelligence\nservers.\n\n \nAdvanced Micro-Fabrication Equipment (AMEC)\n % of Net Assets: 2.9% \n\nAMEC is a Chinese manufacturer of equipment used in the production of\nsemiconductors. The company is positioned to benefit from increased investment\nin domestic semiconductor manufacturing in China.\n\n \nContemporary Amperex Technology (CATL)\n % of Net Assets: 2.8% \n\nCATL is a Chinese manufacturer of batteries for electric vehicles and energy\nstorage systems. Its scale and leading-edge innovation have helped it\nestablish a strong position in the global battery market.\n\n \nOTP Bank\n % of Net Assets: 2.6% \n\nOTP Bank is Hungary’s largest bank and a major banking group across Central\nand Eastern Europe, providing a broad range of retail and corporate banking\nservices.\n\n \nNu Holdings\n % of Net Assets :2.6% \n\nNu Holdings is a Brazilian digital bank offering services including savings,\npayments, credit cards and personal loans. The company has grown its customer\nbase rapidly while establishing a strong record of profitability.\n\n \nForty Largest Holdings\nas at 30 June 2026\nThe Asset Exposures shown below measure exposure to market price movements as\na result of owning shares and derivative instruments. The Fair Value is the\nrealisable value of the portfolio as reported in the Statement of Financial\nPosition. Where the Company holds shares, the Asset Exposure and Fair Value\nwill be the same. For derivative instruments, Asset Exposure is the market\nvalue of the underlying asset to which the Company is exposed, while the Fair\nValue reflects the profit or loss on the contract since it was opened, and is\nbased on how much the share price of the underlying asset has moved.\n\n\n Asset Exposure Fair value \n $’000 % 1 $’000 \n Exposures – shares unless otherwise stated \n Taiwan Semiconductor Manufacturing (shares, options and long CFDs) \n Information Technology 128,777 14.9 113,131 \n Samsung Electronics (shares and long CFDs) \n Information Technology 91,638 10.6 9,790 \n SK Hynix (shares and options) \n Information Technology 64,582 7.5 66,012 \n SK Square \n Industrials 42,702 4.9 42,702 \n Naspers (long CFDs) \n Consumer Discretionary 25,456 2.9 5 \n Elite Material (long CFDs) \n Information Technology 25,187 2.9 1,187 \n Advanced Micro-Fabrication Equipment (shares and long CFDs) \n Information Technology 24,947 2.9 14,977 \n Contemporary Amperex Technology \n Industrials 24,195 2.8 24,195 \n OTP Bank \n Financials 22,221 2.6 22,221 \n Nu Holdings (options and long CFDs) \n Financials 22,029 2.6 1,231 \n TBC Bank Group (long CFDs) \n Financials 21,254 2.5 472 \n Sieyuan Electric \n Industrials 21,131 2.5 21,131 \n Samsung C&T \n Industrials 20,038 2.3 20,038 \n Wiwynn (shares and long CFDs) \n Information Technology 19,911 2.3 5,656 \n Accton Technology (long CFDs) \n Information Technology 19,658 2.3 1,601 \n Lotes (long CFDs) \n Information Technology 19,142 2.2 (482) \n Orizon Valorizacao de Residuos \n Industrials 18,651 2.2 18,651 \n Kaspi.kz (options and long CFDs) \n Financials 18,251 2.1 1,117 \n Torex Gold Resources (long CFDs) \n Materials 17,663 2.0 (307) \n Unimicron Technology \n Information Technology 17,567 2.0 17,567 \n Aura Minerals (shares and long CFDs) \n Materials 17,404 2.0 2,177 \n Tencent Holdings (long CFDs) \n Communication Services 17,198 2.0 40 \n MediaTek \n Information Technology 16,790 2.0 16,790 \n Astor Transformator Enerji Turizm Insaat ve Petrol Sanayi Ticaret \n Industrials 16,728 1.9 16,728 \n Aris Mining (long CFDs) \n Materials 16,574 1.9 (1,158) \n Asia Vital Components (long CFDs) \n Information Technology 16,216 1.9 650 \n Auto Partner \n Consumer Discretionary 14,974 1.7 14,974 \n Guaranty Trust Holding \n Financials 14,096 1.6 14,096 \n Montage Technology (shares and long CFDs) \n Information Technology 13,717 1.6 5,519 \n Banco BTG Pactual \n Financials 13,439 1.6 13,439 \n Itausa \n Financials 12,851 1.5 12,851 \n ASPEED Technology (long CFDs) \n Information Technology 12,408 1.4 (949) \n Techtronic Industries (long CFDs) \n Industrials 12,300 1.4 761 \n Grand Process Technology (long CFDs) \n Information Technology 11,720 1.4 964 \n Grupo Mexico (long CFDs) \n Materials 11,290 1.3 (456) \n First Quantum Minerals (shares and long CFDs) \n Materials 11,282 1.3 1,218 \n ASML Holding (options) \n Information Technology 10,974 1.3 2,674 \n ASE Technology Holding (shares and long CFDs) \n Information Technology 10,651 1.2 2,058 \n Minsur \n Materials 10,648 1.2 10,648 \n Global Standard Technology \n Information Technology 10,119 1.2 10,119 \n Forty largest exposures 936,379 108.4 504,038 \n Other exposures 648,451 75.0 277,977 \n Total exposures before index positions and index hedging 1,584,830 183.4 782,015 \n Add: index positions \n FTSE Taiwan Index (future) 6,954 0.8 67 \n Less: index hedging \n MSCI Emerging Markets Index (future) (205,692) (23.8) 4,182 \n Total exposure after the netting of index positions and index hedging 1,386,092 160.4 786,264 \n Forward currency contracts 188 \n Gross Asset Exposure 2 1,386,092 160.4 \n Portfolio Fair Value 3 786,452 \n Net current assets (excluding derivative assets and liabilities) 77,551 \n Total Net Assets 864,003 \n\n1 Asset Exposure (as defined in the Glossary of Terms) expressed as a\npercentage of Net Assets.\n\n2 Gross Asset Exposure (as defined in the Glossary) comprises market exposure\nto investments of $767,445,000 (per Note 10) plus market exposure to\nderivatives instruments of $618,647,000 (as per Note 11).\n\n3 Portfolio Fair Value comprises investments of $767,445,000 plus derivative\nassets of $41,149,000 less derivative liabilities of $22,142,000. (per the\nStatement of Financial Position).\n\n \nDistribution of the Portfolio\nas at 30 June 2026\n Sector Asset Exposure % 1 Benchmark Index % \n Information Technology 71.3 45.3 \n Industrials 28.3 6.7 \n Materials 27.0 5.4 \n Financials 26.9 18.4 \n Consumer Discretionary 14.2 7.2 \n Consumer Staples 5.9 2.6 \n Communication Services 3.2 6.0 \n Energy 2.3 3.1 \n Health Care 1.5 2.4 \n Real Estate 1.2 1.0 \n Investment Funds 0.9 – \n Utilities 0.7 1.9 \n Others (index positions) 0.8 – \n Total excluding index hedging 184.2 100.0 \n Index hedging (23.8) – \n Total including index hedging 160.4 100.0 \n\n1 Asset Exposure expressed as a percentage of Net Assets.\n\n\n Country Asset Exposure % 1 Benchmark Index % \n Taiwan 44.4 27.3 \n South Korea 34.5 23.7 \n China 22.0 19.0 \n Brazil 12.3 3.8 \n India 9.4 11.1 \n South Africa 7.3 2.9 \n United States of America 7.3 – \n Canada 5.1 – \n Kazakhstan 3.8 – \n Turkiye 3.2 0.4 \n Peru 3.0 0.4 \n Poland 2.9 1.0 \n Mexico 2.9 1.7 \n Indonesia 2.6 0.4 \n Hungary 2.6 0.3 \n Hong Kong 2.5 – \n Georgia 2.5 – \n Colombia 1.9 0.1 \n Nigeria 1.6 – \n Netherlands 1.5 – \n Zambia 1.3 – \n Vietnam 1.3 – \n Panama 1.0 – \n Greece 0.9 0.5 \n Austria 0.9 – \n Thailand 0.8 1.0 \n Ivory Coast 0.6 – \n Cyprus 0.6 – \n Virgin Islands, British 0.5 – \n Argentina 0.5 – \n Germany 0.5 – \n Saudi Arabia 0.4 2.4 \n Chile 0.3 0.4 \n Cameroon 0.2 – \n Congo, the Democratic Republic of the 0.2 – \n Philippines 0.2 0.3 \n Romania 0.2 – \n Australia 0.2 – \n United Kingdom 0.2 – \n Norway 0.1 – \n Russia – – \n Others – 3.3 \n Total excluding index hedging 184.2 100.0 \n Index hedging (23.8) – \n Total including index hedging 160.4 100.0 \n\n1 Asset Exposure expressed as a percentage of Net Assets.\nAttribution Analysis\nas at 30 June 2026\n Ten Highest Contributors to NAV relative return % \n SK Square +7.4 \n Elite Material +6.4 \n Pan African Resources +4.4 \n Sieyuan Electric +2.1 \n Tencent Holdings +2.1 \n Aaura Minerals +2.0 \n Advanced Micro-Fabrication Equipment +2.0 \n Accton Technology +1.8 \n Alibaba Group +1.7 \n Endeavour Mining +1.6 \n \n Ten Highest Detractors from NAV relative return % \n Naspers (6.0) \n Short Position (2.2) \n Five Star Business Finance (2.1) \n TBC Bank Group (1.9) \n Tencent Music Entertainment (1.5) \n Short Position (1.4) \n Full Truck Alliance (1.4) \n Kaspi (1.4) \n APT Medical (1.2) \n Short Position (1.1) \n\nNote: Derivative positions are included in the above investment positions.\n\nSource: Fidelity International.\nFive Year Record\n For the year ended 30 June 2026 2025 2024 2023 2022 \n Investment Performance \n Net asset value per Participating Preference Share total return 1 +92.3% +11.8% +18.7% -2.6% -27.9% \n Share Price total return 1 +99.3% +14.0% +22.6% -5.2% -30.0% \n MSCI Emerging Markets Index total return +48.2% +6.3% +13.2% -2.8% -14.9% \n Assets \n Gross asset exposure ($m) 1 1,386.1 1,235.3 1,177.3 1,185.0 1,120.1 \n Net assets ($m) 864.0 771.6 753.4 796.7 796.8 \n Gross gearing (%) 1 60.4 60.1 56.3 48.7 40.6 \n Net gearing (%) 1 8.8 5.5 4.3 (3.9) (7.6) \n Net asset value per Participating Preference Share ($) 1 21.94 11.99 10.09 8.75 8.75 \n Net asset value per Participating Preference Share (£) 1 16.53 8.75 7.98 6.88 7.20 \n Share Price data at year end \n Share price (£) 15.30 7.83 7.03 5.88 6.34 \n Discount (%) 1 7.4 10.5 11.9 14.6 12.0 \n Earnings and Dividends paid \n Revenue earnings per Participating Preference Share ($) 2 0.32 0.31 0.16 0.22 0.15 \n Capital earnings/(losses) per Participating Preference Share ($) 2 8.23 1.52 1.29 (0.06) (5.11) \n Total earnings/(losses) per Participating Preference Share ($) 2 8.55 1.83 1.45 0.16 (4.96) \n Dividend per Participating Preference Share $0.33 $0.26 $0.20 $0.19 $0.16 \n Ongoing Charges (%) 1 0.87 0.83 0.81 0.81 0.60 \n\n1 Alternative Performance Measures. Please see below and the Glossary of\nTerms in the Annual Report for further details.\n\n2 Calculated based on weighted average number of participating preference\nshares in issue during the year.\n\nSources: JPMorgan and Datastream\n\nPast performance is not a guide to future returns.\n\n \nPRINCIPAL AND EMERGING RISKS AND UNCERTAINTIES, RISK MANAGEMENT\nIn accordance with provisions 33 and 34 of the AIC (Association of Investment\nCompanies) Code, the Board has a robust ongoing process for identifying,\nevaluating and managing the principal risks and uncertainties faced by the\nCompany, including those that could threaten its business model, future\nperformance, solvency or liquidity.\n\n \n\nThe Board will implement the new requirement, under provision 34 of the AIC\nCode applicable for reporting periods from 1 January 2026, of a Board\ndeclaration on the effectiveness of material risk management and internal\ncontrols in the Company’s next reporting year.\n\n \n\nThe Board, with the assistance of the Manager has developed a risk matrix\nwhich, as part of the risk management and internal controls process,\nidentifies the key existing and emerging risks and uncertainties that the\nCompany faces.\n\n \n\nThe Manager also has responsibility for the day-to-day risk management for the\nCompany. It works with the Board to identify and manage the principal and\nemerging risks and uncertainties and to ensure that the Board can continue to\nmeet its UK corporate governance obligations.\n\n \nEmerging Risks\nThe Audit and Risk Committee continues to identify emerging risks and will\ntake any feasible action to mitigate their potential impact. The risks\nidentified are placed on the Company’s risk matrix and graded appropriately.\nThis process, together with the policies and procedures for the mitigation of\nexisting and emerging risks, is updated and reviewed regularly in the form of\ncomprehensive reports reviewed by the Audit and Risk Committee.\n\n \n\nKey emerging issues that the Audit and Risk Committee has identified include:\n\n \n\nClimate Change – Globally, climate change (large scale shift in the\nplanet’s weather patterns and average temperatures) effects are already\nbeing experienced in the form of changing weather patterns. Extreme weather\nevents can potentially impact the operations of investee and potential\ninvestee companies, their supply chains and their customers. Climate change\ncontinues to be an emerging risk. The Board notes that the Manager includes\nESG considerations, including climate change, into the Company’s investment\nprocess.\n\n \n\nThe Board will continue to monitor how this may impact the Company as a risk\nto investment valuations and potentially affect shareholder returns.\n\n \n\nArtificial Intelligence (“AI”) – The Board, together with the Manager,\nis also monitoring the emerging risks posed by the rapid advancement of AI and\nhow it may threaten the Company’s activities and its potential impact on the\nportfolio and investee companies. AI can provide asset managers powerful\ntools, such as enhancing data analysis risk management, trading strategies,\noperational efficiency and client servicing, all of which can lead to better\ninvestment outcomes and more efficient operations. However, with these\nadvances in computing power that will impact society, there are risks from its\nincreasing use and manipulation with the potential to harm, including a\nheightened threat to cybersecurity.\n\n \n\nOther emerging risks may continue to evolve from unforeseen geopolitical and\neconomic events. There are currently several geopolitical factors including\nongoing wars, international trade battles and protectionism that could mean\ngreater stock market risks and heightened macro-economic changes such as\ninflation, interest rates, currency fluctuations, energy costs and an\nincreased regulatory environment.\n\n \n\nThe Board notes that the Manager monitors these issues, and has integrated\nmacro and ESG considerations, including climate change, into the Company’s\ninvestment process. The Board will continue to monitor how this may impact the\nCompany as a risk, the main risk being the impact on investment valuations.\n\n \nPrincipal Risks\nThe Board determines the nature and extent of any risks it is willing to take\nin order to achieve its strategic objectives. The risks listed below are\nconsidered by the Board to be the principal risks and uncertainties faced by\nthe Company.\n\n Principal Risks Description and Impact Mitigation \n 1. Geopolitical Risk Trend(from previous year): Increased Political, socio-economic and cultural events, trends and developments may have an adverse effect on the value of the Company’s investments and the Manager’s ability to The Board has oversight of the portfolio and regularly reviews the impact any material economic or market changes and has comfort that the portfolio is also sufficiently diversified by sector and number of holdings. To manage the risks posed by adverse price fluctuations the Company’s investments are geographically diversified and will continue to be so. Active concentrations (for example by country) are being closely monitored. The exposure to any one company or group (other than an investment company, unit trust or mutual fund) is unlikely to exceed 5% of the Company’s net assets at the time the investment is made. According to the Investment Policy, “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”. \n access markets freely. The Company is exposed to several geopolitical risks. The geopolitical landscape continues to change globally and is largely shaped by the ongoing \n effects of war conflicts, tariff wars, deglobalisation trends and significant supply disruption. The Middle East and Russia are significant net exporters of oil, natural \n gas and a variety of soft commodities and supply limitations have fuelled global inflation and economic instability, specifically within Western nations. Macro economic \n uncertainty continues to impact Western investment appetite. The economies, currencies and financial markets of a number of developing countries in which the Company \n invests may be extremely volatile. Emerging markets are less established, and tend to be more volatile, than developed markets. They are therefore more likely to \n experience risks that in developed markets are associated with unusual market conditions. \n 2. Investment Performance and Gearing Trend (from previous year): Decreased Risk of underperformance for a sustained period by the Portfolio Manager and lack of enough outperformance to offset the longer-term record. The Portfolio Manager may An investment strategy overseen by the Board to optimise returns. The Portfolio Managers are supported by 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. The Board sets a limit on gearing and provides oversight of the Manager’s use of gearing. Under normal market conditions, the Company’s Net Market Exposure is not expected to exceed the NAV by more than 10%, however in all other scenarios the Company’s Net Market Exposure may not exceed the NAV by more than 20% whilst the Company’s Gross Asset Exposure will not exceed the NAV by more than 65%. \n fail to use gearing effectively, resulting in a failure to outperform in a rising market or to underperform in a falling market. \n 3. Competition Risks, Marketplace Threats Impacting Business Growth Trend (from previous year): Increased Risks that external pressures impact the Company’s ability to maintain and grow the business due to the rise of passive vehicles and ETFs, increasing demand for Ongoing review by the Board, Broker and Manager of peer group and industry activity. Annual review of strategy by the Board, and review by the Board of the strategic direction of the Company on an ongoing basis to ensure it offers a relevant product to shareholders. Regular review by the Board of marketing, public relations and sales activity, and the shareholder register. \n integrated digital/wealth solutions, and the gradual transition of an ageing shareholder base. Industry consolidation and structural change continue, driven by cost \n pressures and the need for scale. This trend has been reinforced by heightened shareholder activism, particularly in the UK. \n 4. Changes in Legislation, Taxation or Regulation Trend (from previous year): Stable There is a risk of the Company not complying with the regulatory requirements of the Guernsey Financial Services Commission, UK listing rules, corporate governance The Board monitors tax and regulatory changes at each Board meeting and through active engagement with regulators and trade bodies by the Manager. The Manager regularly attends regular briefings from key industry bodies. Regulatory developments are monitored and managed by Fidelity through active lobbying and negotiations as well as a robust change management process. \n 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 \n to exclusion from trading in particular markets. Investment companies remain in scope of the FCA’s Consumer Composite Investments (CCI) regime, which will replace \n PRIIPs. While this introduces changes to disclosure frameworks, the final rules emphasise flexibility, simplified communication and comparability of key metrics, allowing \n firms to tailor investor communications more effectively and reduce unnecessary complexity. \n 5. Business Continuity & Crisis Management Trend (from previous year): Increased Business process disruption risk from continued threats of cyberattacks, geopolitical events, outages, fire events and natural disasters, resulting in financial and/or Fidelity has Business Continuity and Crisis Management Frameworks in place to deal with business disruption and assure operational resilience. All third-party service providers are subject to a risk-based programme of oversight by the Manager. Third-party service provider internal controls reports are received on an annual basis, and any concerns are investigated. \n reputational impact to the Company affecting the functioning of the business. In addition to the Manager, the Company relies on other third-party service providers, \n principally the Registrar, Custodian and Depositary who may be subject to business continuity and crisis management issues. \n 6. Operational Risk Trend (from previous year) : Stable Financial losses or reputational damage from inadequate or failed internal processes, people and systems or from external parties and events. Fidelity’s Operational Risk Management Framework is designed to pro-actively prevent, identify and manage operational risks inherent in most activities. Fidelity uses robust systems and procedures dedicated to its operational processes. Its risk management structure is designed according to the FCA’s three lines of defence model. \n 7. Cybercrime and Information Security Risks Trend (from previous year): Increased Cybersecurity risk increased use of artificial intelligence (AI) and cyberattacks or threats to the functioning of global markets and to the Manager’s own business model, The risk is monitored by the Board with the help of the Manager’s global cybersecurity team and their extensive Strategic Cyber and Information Security programme and assurances from outsourced suppliers. The Manager has established a comprehensive framework of information security policies and standards which provide a structured approach to identify, prevent, and respond to information security threats. The framework ensures consistency in Fidelity’s security measures, enhances its ability to adapt to evolving/emerging threats, and compliance with changing regulatory requirements. The Company’s other service providers also have cybersecurity measures in place. Key performance indicators and metrics have been developed by the Manager to monitor the overall efficacy of cybersecurity processes and controls and to further enhance the Manager’s cybersecurity strategy and operational resilience. \n including its and the Company’s outsourced suppliers. The external threat environment has intensified, driven by AI enhanced ransomware, identity centric attacks, rapidly \n expanding supply chain compromise vectors, and rising nation state activity. \n 8. Level of Discount to Net Asset Value (“NAV”) Trend (from previous year): Stable The risk that the share price performance lags NAV performance. A discount in the price at which the Company’s shares trade to NAV would mean that shareholders would be The Board reviews the investment strategy, investment performance and the marketing approach, given the influence of all these factors on the discount. Due to the nature of investment companies, the price of the Company’s shares and its discount to NAV are factors which are not completely within the Company’s control. The Company’s share price, NAV and discount volatility are monitored daily by the Manager and the Company’s Broker and considered by the Board on a regular basis. The demand for shares can be influenced through good performance and an active investor relations programme. Discretionary repurchases of ordinary shares are made within guidelines set by the Board considering prevailing market conditions. \n unable to realise the true underlying value of their investment. In considering the risk that the discount to NAV poses to shareholder value and returns, both the \n absolute level of the discount and the amount relative to the Company’s peer group and the wider market are considered. \n 9. Key Person Risk Trend (from previous year): Stable Loss of a Portfolio Manager or other key individuals could lead to potential performance and/or operational issues. There is also a risk that the Manager has inadequate Fidelity has successions plans in place for Portfolio Managers with a designated PM and a Co-PM identified for the Company. Depth of the team within Fidelity. Experience of the analysts covering the Company’s investments. \n succession plans for other key operational individuals. \n 10. Lack of Market Liquidity Risk Trend (from previous year): Stable Trading volumes on the stock exchanges of developing countries can be substantially lower than in the leading stock markets of the developed world and trading may even be The Company is required to disclose its own Liquidity Risk Policy in the Annual Report. At a Fidelity corporate level, the Manager as the AIFM manages liquidity for each fund in accordance with the Fund Investment Risk Policy, which incorporates Fund Liquidity Risk Management Framework. The restrictions on concentration and the diversification requirements protect the overall value of the Company from the risks created by the lower level of liquidity in the markets in which the Company operate. \n temporarily suspended during certain periods. Liquidity can also be negatively impacted by temporary capital controls in certain markets. A lower level of liquidity can \n exaggerate the fluctuations in the value of investments. Country allocations may add liquidity challenges. Whilst country active exposures are a residual of stock picking \n approach used by the Portfolio Manager; country risk is heightened amid elevated geopolitical uncertainties which may impact liquidity risk profile of the Company. \n\n \n\nOther risks facing the Company include:\nTax and Regulatory Risks\nThere is a risk of the Company not complying with the regulatory requirements\nof the Guernsey Financial Services Commission, UK listing rules, corporate\ngovernance requirements or local tax requirements that could result in loss of\nstatus as an Authorised Closed Ended Investment Scheme, becoming subject to\nadditional tax charges or to the exclusion from trading in\nparticular markets.\n\n \n\nThe Board monitors tax and regulatory changes at each Board meeting and\nthrough active engagement with regulators and trade bodies by the Manager.\n\n \nViability statement\nIn accordance with the AIC Code of Corporate Governance the Directors have\nassessed the prospects of the Company over a longer period than the twelve\nmonth period required by the “Going Concern” basis. The Company is an\ninvestment company with the objective of achieving long-term capital growth\nfrom an actively managed portfolio made up primarily of securities and\nfinancial instruments providing exposure to emerging market companies, both\nlisted and unlisted. The Board considers long-term to be at least five years,\nand accordingly, the Directors believe that five years is an appropriate\ninvestment horizon to assess the viability of the Company, although the life\nof the Company is not intended to be limited to this or any other period. In\nmaking an assessment on the viability of the Company, the Board has considered\nthe following:\n\n· The ongoing relevance of the investment objective in prevailing market\nconditions;\n\n· The Company’s NAV and share price performance;\n\n· The principal and emerging risks and uncertainties facing the Company as\nset out above and their potential impact;\n\n· The future demand for the Company’s shares;\n\n· The Company’s share price discount to its NAV;\n\n· The liquidity of the Company’s portfolio;\n\n· Consideration of the continuation vote at the next AGM;\n\n· The level of income generated by the Company; and\n\n· Future income and expenditure forecasts.\n\n \n\nThe Company has assumed for the purposes of the viability statement that the\ncontinuation vote in 2026 would be passed. This assumption is based on the\nCompany’s performance to 30 June 2026 (in absolute terms and versus the\nbenchmark), the level of discount and informal conversations with\nshareholders. Formal feedback from shareholders on the continuation vote has\nbeen sought as part of the preparation of the 2026 financial statements. The\nDirectors have not been informed by any shareholder that they will vote\nagainst continuation.\n\nThe Company’s performance for the five year reporting period to 30 June 2026\noutperformed the Benchmark Index, with a NAV total return of +79.2%, and a\nshare price total return of +84.9% compared to the Benchmark Index total\nreturn of +47.5%.\n\n \n\nThe Board regularly reviews the investment policy and considers whether it\nremains appropriate. The Board has concluded that there is a reasonable\nexpectation that the Company will be able to continue in operation and meet\nits liabilities as they fall due over the next five years based on the\nfollowing considerations:\n\n· The Investment Manager’s compliance with the Company’s investment\nobjective and policy, its investment strategy and asset allocation;\n\n· The fact that the portfolio comprises sufficient readily realisable\nsecurities which can be sold to meet funding requirements if necessary; and\n\n· The ongoing processes for monitoring operating costs and income which are\nconsidered to be reasonable in comparison to the Company’s total assets.\n\n \n\nWhen considering the risk of under-performance, a series of stress tests were\ncarried out including in particular the effects of any substantial future\nfalls in investment value on the ability to maintain dividend payments and\nrepay obligations as and when they arise.\n\n \n\nIn preparing the Financial Statements, the Board has considered the impact of\nregulatory changes and significant market events and how this may affect the\nCompany. In addition, the Directors’ assessment of the Company’s ability\nto operate in the foreseeable future is included in the Going Concern\nStatement which is included in the Directors’ Report.\n\n \nPromoting the Success of the Company\nThe Company is not required to comply with the provisions of the UK Companies\nAct 2006, but it is a requirement of the AIC Code of Corporate Governance to\nreport upon Section 172 of this statute irrespective of domicile.\nSection 172 recognises that Directors of a company must act in a way they\nconsider, in good faith, would be most likely to promote the success of the\nCompany for the benefit of its members as a whole, and in doing so have regard\n(amongst other matters) to the likely consequences of any decision in the\nlong-term; the need to foster relationships with the Company’s suppliers,\ncustomers and others; the impact of the Company’s operations on the\ncommunity and the environment; the desirability of the Company maintaining a\nreputation for high standards of business conduct; and the need to act fairly\nas between members of the Company.\n\n \n\nAs an externally managed Investment Company, the Company has no employees or\nphysical assets, and a number of the Company’s functions are outsourced to\nthird parties. The key outsourced function is the provision of investment\nmanagement services by the Manager, but other professional service providers\nsupport the Company by providing administration, custodian, banking and audit\nservices. The Board considers the Company’s key stakeholders to be the\nexisting and potential shareholders, the external appointed Manager and other\nthird-party professional service providers. The Board considers that the\ninterest of these stakeholders is aligned with the Company’s objective of\ndelivering long-term capital growth to investors, in line with the Company’s\nstated objective and strategy, while providing the highest standards of legal,\nregulatory and commercial conduct.\n\n \n\nThe Board, with the Portfolio Manager, sets the overall investment strategy\nand reviews this regularly. In order to ensure good governance of the Company,\nthe Board has set various limits on the investments in the portfolio, whether\nin the maximum size of individual holdings, the use of derivatives, the level\nof gearing and others. These limits and guidelines are regularly monitored and\nreviewed and are set out in the Annual Report.\n\n \n\nThe Board places great importance on communication with shareholders and is\ncommitted to listening to their views. The primary medium through which the\nCompany communicates with shareholders is through its Annual and Half Year\nFinancial Reports. Monthly factsheets are also produced. Company related\nannouncements are released via a regulatory information service (‘RNS’) to\nthe London Stock Exchange. All of the aforementioned information is available\non the Company’s website www.fidelity.co.uk/emergingmarkets. Shareholders\nmay also communicate with Board members at any time by writing to the Company\nSecretary at FIL Investments International, Beech Gate, Millfield Lane,\nTadworth, Surrey KT20 6RP or by email at investmenttrusts@fil.com. The\nPortfolio Managers meet with major shareholders, potential investors, stock\nmarket analysts, journalists and other commentators throughout the year. These\ncommunication opportunities help inform the Board in considering how best to\npromote the success of the Company over the long-term.\n\n \n\nThe Board seeks to engage with the Manager and other service providers and\nadvisers in a constructive and collaborative way, promoting a culture of\nstrong governance, while encouraging open and constructive debate, in order to\nensure appropriate and regular challenge and evaluation. This aims to enhance\nservice levels and strengthen relationships with service providers, with a\nview to ensuring shareholders’ interests are best served, by maintaining the\nhighest standards of commercial conduct while keeping cost levels competitive.\n\n \n\nWhilst the Company’s direct operations are limited, the Board recognises the\nimportance of considering the impact of the Company’s investment strategy on\nthe wider community and environment. The Board believes that a proper\nconsideration of ESG issues aligns with the Company’s investment objective\nto deliver long-term growth in both capital and income, and the Board’s\nreview of the Manager includes an assessment of their ESG approach.\n\n \n\nIn addition to ensuring that the Company’s investment objective was being\npursued, key decisions and actions taken by the Directors during the reporting\nyear, and up to the date of this report, have included:\n\n· Marketing & PR\n\n The Board has continued to be proactive in its efforts to promote the\nsuccess of the Company. It has worked closely with the Manager, utilising the\nManager’s extensive marketing capabilities, in combination with the\nCompany’s appointed stockbrokers, and public relations firm to continue to\nexecute a comprehensive promotional programme for the Company.\n\n· Discount Control – Share Buybacks\n\n The Company continued a share buyback programme to address the discount to\nNAV at which the Company’s shares trade.\n\n· Dividend\n\n The decision to recommend a dividend of $0.33 per Participating Preference\nShare in respect of the year ended 30 June 2026 (2025: $0.26).\n\n \nGoing Concern\nThe Financial Statements of the Company have been prepared on a going concern\nbasis.\n\n \n\nThe Directors have considered the Company’s investment objective, risk\nmanagement policies, liquidity risk, credit risk, capital management policies\nand procedures, the nature of its portfolio and its expenditure and cash flow\nprojections.\n\n \n\nThe Directors, having considered the liquidity of the Company’s portfolio of\ninvestments (being mainly securities which are readily realisable) stress\ntesting performed and the projected income and expenditure, are satisfied that\nthe Company is financially sound and has adequate resources to meet all of its\nliabilities and ongoing expenses and continue in operational existence for the\nforeseeable future. The Board has therefore concluded that the Company has\nadequate resources to continue to adopt the going concern basis for the period\nto 31 October 2027 which is at least twelve months from the date of approval\nof the Financial Statements.\n\n \n\nThe Company, in accordance with the provisions of its Articles of\nIncorporation, is subject to a continuation vote by shareholders at the Annual\nGeneral Meeting to be held on 1 December 2026. At this stage, the Directors\nbelieve that it is likely shareholders will vote in favour of continuation. As\nhighlighted in the Chairman’s statement, this conclusion is based on the\nCompany’s NAV total return performance beating the Index by +44.1 percentage\npoints this year and by 5.5 percentage points in both of the two preceding\nyears. The share price outperformance versus the Index was 51.3 percentage\npoints in year under review and share price outperformed the Index by 7.7 and\n9.4 percentage points in the two preceding years. The Board is encouraged by\nthe growing interest in emerging markets as an asset class, the relative level\nof the Company’s discount versus peers remains good, and the excellent\nperformance of the Fidelity emerging market open ended fund which replicates\nthe closed end fund, and has a longer track record, with the same portfolio\nmanagement team is strong. There is a continuation vote scheduled to take\nplace at the AGM, there are no indications from shareholders that they will\nvote against the continuation of the Company. The Directors have concluded\nthat despite the continuation vote the preparation of the Financial Statements\non a going concern basis remains appropriate.\n\n \n\nThe prospects of the Company over a period longer than twelve months can be\nfound in the Viability Statement.\n  Statement of Comprehensive Income\nfor the year ended 30 June 2026\n Year ended 30 June 2026 Year ended 30 June 2025 \n Note Revenue $’000 Capital $’000 Total $’000 Revenue $’000 Capital $’000 Total $’000 \n Revenue \n Investment income 3 18,866 – 18,866 22,941 – 22,941 \n Derivative income 3 25,347 – 25,347 26,855 – 26,855 \n Other income 3 963 – 963 631 – 631 \n Total income 45,176 – 45,176 50,427 – 50,427 \n Net gains on investments at fair value through profit or loss 10 – 381,517 381,517 – 80,979 80,979 \n Net gains on derivative instruments 11 – 41,644 41,644 – 32,226 32,226 \n Net foreign exchange losses – (3,242) (3,242) – (1,475) (1,475) \n Total income and gains 45,176 419,919 465,095 50,427 111,730 162,157 \n Expenses \n Investment management fees 4 (934) (3,734) (4,668) (863) (3,451) (4,314) \n Other expenses 5 (2,206) – (2,206) (1,644) – (1,644) \n Profit before finance costs and taxation 42,036 416,185 458,221 47,920 108,279 156,199 \n Finance costs 6 (23,523) – (23,523) (23,704) – (23,704) \n Profit before taxation 18,513 416,185 434,698 24,216 108,279 132,495 \n Taxation 7 (2,110) (785) (2,895) (2,347) (3,162) (5,509) \n Profit after taxation for the year 16,403 415,400 431,803 21,869 105,117 126,986 \n Basic and diluted earnings per Participating Preference Share 8 $0.32 $8.23 $8.55 $0.31 $1.52 $1.83 \n\n\nThe Company does not have any income or expenses that are not included in the\nprofit after taxation for the year. Accordingly the profit after taxation for\nthe year is also the total comprehensive income for the year and no separate\nStatement of Comprehensive Income has been presented.\n\n \n\nThe total column of this statement represents the Company’s Statement of\nComprehensive Income prepared in accordance with IFRS. The supplementary\ninformation on the allocation between the revenue account and the capital\nreserve is presented under guidance published by the AIC.\n\n \n\nAll the profit and total comprehensive income is attributable to the equity\nshareholders of the Company. There are no minority interests.\n\n \n\nNo operations were acquired or discontinued in the year and all items in the\nabove statement derive from continuing operations.\n  Statement of Changes in Equity\nfor the year ended 30 June 2026\n Note Share premium account $’000 Capital reserve $’000 Revenue reserve $’000 Total equity $’000 \n Total equity at 30 June 2025 6,291 706,238 59,099 771,628 \n Profit after taxation for the year – 415,400 16,403 431,803 \n Participating Preference Shares repurchased and cancelled 14 – (132,253) – (132,253) \n Participating Preference Shares repurchased and cancelled for Strathclyde Pension Fund 14 – (193,927) – (193,927) \n Buyback expenses 15 – (910) – (910) \n Dividend paid to shareholders 9 – – (12,338) (12,338) \n Total equity at 30 June 2026 6,291 794,548 63,164 864,003 \n\n \n\n Note Share premium account $’000 Capital reserve $’000 Revenue reserve $’000 Total equity $’000 \n Total equity at 30 June 2024 6,291 695,822 51,333 753,446 \n Profit after taxation for the year – 105,117 21,869 126,986 \n Participating Preference Shares repurchased into Treasury 14 – (94,701) – (94,701) \n Dividend paid to shareholders 9 – – (14,103) (14,103) \n Total equity at 30 June 2025 6,291 706,238 59,099 771,628 \n\n \nStatement of Financial Position\nas at 30 June 2026\n Note 30 June 2026 $’000 30 June 2025 $’000 \n Non-current assets \n Investments at fair value through profit or loss 10 767,445 712,861 \n Current assets \n Derivative assets 11 41,149 15,006 \n Amounts held at futures clearing houses and brokers 42,884 52,521 \n Other receivables 12 14,333 9,504 \n Cash and cash equivalents 32,829 9,551 \n 131,195 86,582 \n Current liabilities \n Derivative liabilities 11 22,142 15,784 \n Other payables 13 12,488 12,031 \n Bank overdraft 7 – \n 34,637 27,815 \n Net current assets 96,558 58,767 \n Net assets 864,003 771,628 \n Equity \n Share premium account 15 6,291 6,291 \n Capital reserve 15 794,548 706,238 \n Revenue reserve 15 63,164 59,099 \n Total equity 864,003 771,628 \n \n Net asset value per Participating Preference Share 16 $21.94 $11.99 \n\n\nThe Financial Statements were approved by the Board of Directors of the\nCompany on 5 October 2026 and signed on its behalf by:\n\n \n\nHeather Manners\nChairman\nStatement of Cash Flows\nfor the year ended 30 June 2026\n 30 June 2026 $’000 30 June 2025 $’000 \n Operating activities \n Cash inflow from dividend income from investments 20,364 21,955 \n Cash inflow from interest income from investments, cash and collateral balances 963 633 \n Cash inflow from dividend income from derivatives 11,625 14,390 \n Cash inflow from interest income from derivatives 667 1,166 \n Cash outflow from taxation paid (6,317) (4,407) \n Cash outflow from the purchase of investments (922,863) (746,980) \n Cash inflow from the sale of investments 1,242,768 804,105 \n Cash inflow from net proceeds from settlement of derivatives 38,025 57,520 \n Cash inflow/(outflow) from amounts held at futures clearing houses and brokers 9,637 (7,569) \n Cash outflow from operating expenses (6,608) (6,262) \n Net cash inflow from operating activities 388,261 134,551 \n Financing activities \n Cash outflow from CFD interest paid (21,129) (19,611) \n Cash outflow from short CFD dividends paid (2,463) (3,011) \n Cash outflow from dividends paid to shareholders (12,338) (14,103) \n Cash outflow from the repurchase of Participating Preference Shares into Treasury (1,048) (95,594) \n Cash outflow from the repurchase and cancellation of Participating Preference Shares (323,860) – \n Cash outflow from cancellation buyback expenses (910) – \n Net cash outflow from financing activities (361,748) (132,319) \n Net increase in cash and cash equivalents 26,513 2,232 \n Cash and cash equivalents at the start of the year 9,551 8,794 \n Effect of foreign exchange movements (3,242) (1,475) \n Cash and cash equivalents at the end of the year 32,822 9,551 \n Represented by: \n Cash at bank 15,121 9,551 \n Amount held in Fidelity Institutional Liquidity Fund 17,708 – \n Bank overdraft (7) – \n 32,822 9,551 \n\n \nNotes to the Financial Statements 1. Principal Activity\nFidelity Emerging Markets Limited (the ‘Company’) was incorporated in\nGuernsey on 7 June 1989 and commenced activities on 19 September 1989. The\nCompany is an Authorised Closed-Ended Investment Scheme as defined by The\nAuthorised Closed-Ended Investment Schemes Rules and Guidance, 2021 (and, as\nsuch, is subject to ongoing supervision by the Guernsey Financial Services\nCommission). The Company is listed on the London Stock Exchange and is a\nconstituent of the FTSE 250 Index.\n\n \n\nThe Company’s registered office is at Level 3, Mill Court La Charroterie, St\nPeter Port, Guernsey GY1 1EJ, Channel Islands.\n\n \n\nThe Company’s investment objective is to achieve long-term capital growth\nfrom an actively managed portfolio made up primarily of securities and\nfinancial instruments providing exposure to emerging market companies, both\nlisted and unlisted.\n\n \n\nThese financial statements were approved by the Board of Directors and\nauthorised for issue on 5 October 2026.\n\n \n2. Accounting policies\n(a) Basis of preparation\nThe principal accounting policies applied in the preparation of these\nfinancial statements on a going concern basis are set out below. These\npolicies have been consistently applied to all years presented, unless\notherwise stated. The Company’s financial statements, which give a true and\nfair view of the assets, liabilities, financial position and profit and loss\nof the Company, have been prepared in accordance with International Financial\nReporting Standards as adopted by the European Union (‘IFRS’), which\ncomprise standards and interpretations approved by the International\nAccounting Standards Board (‘IASB’), the IFRS Interpretations Committee\nand interpretations approved by the International Accounting Standards\nCommittee (‘IASC’) that remain in effect and the Companies (Guernsey) Law,\n2008. The financial statements have been prepared under the historical cost\nconvention, as modified by the revaluation of financial assets and financial\nliabilities at fair value through profit or loss.\n\n \nGoing concern\nThe Directors have a reasonable expectation that the Company has adequate\nresources to continue in operational existence for at least twelve months from\nthe date of approval of these Financial Statements. In making their assessment\nthe Directors have reviewed the income and expense projections, the liquidity\nof the investment portfolio, stress testing performed and considered the\nCompany’s ability to meet liabilities as they fall due. The Directors have\nalso considered the continuation vote to be held at the Annual General Meeting\non 1 December 2026 and expect that the resolution will be passed. This\nassumption is based on the Company’s performance to 30 June 2026 (in\nabsolute terms and versus the benchmark), the level of discount and informal\nconversations with shareholders. Accordingly, the Directors consider it\nappropriate to adopt the going concern basis of accounting in preparing these\nFinancial Statements. The Financial Statements do not include any adjustments\nthat would arise if the continuation resolution is not passed and such\nadjustments may be material.\n\n \nSignificant accounting estimates, assumptions and judgements\nThe preparation of financial statements in conformity with IFRS may require\nmanagement to make critical accounting judgements, estimates and assumptions\nthat affect the application of policies and the reported amounts of assets and\nliabilities, income and expense. Actual results may differ from the estimates.\n\n \n\nValuations use observable data to the extent practicable. Changes in any\nassumptions could affect the reported fair value of the financial instruments.\nThe determination of what constitutes observable requires significant\njudgement by the Company. The Company considers observable data to be market\ndata that is readily available, regularly distributed or updated, reliable and\nverifiable, not proprietary, and provided by independent sources that are\nactively involved in the relevant market.\n\n \nDetermination of fair value of unlisted investments\nThe key estimate in the Financial Statements is the determination of the fair\nvalue of unlisted investments. This process is overseen by the Manager’s\nFair Value Committee (“FVC”), supported by an external valuer and\nFidelity’s unlisted investments specialist, and is subject to detailed\nreview and appropriate challenge by the Directors. The valuation of unlisted\ninvestments significantly impacts the financial statements at the Statement of\nFinancial Position date. The valuation approach for the fund’s unlisted\ninvestments is as follows:\n\n· Investee Funds: These investments are primarily valued based on the\nofficial valuation statements from the Investee Funds.\n\n· Russian securities: Due to the current market conditions and restrictions,\nthese securities are valued at nil, reflecting their impaired status and lack\nof marketability.\n\nAdoption of new and revised International Accounting Standards – the\naccounting policies adopted are consistent with those of the previous\nfinancial year.\n\n \n\nAt the date of authorisation of these Financial Statements, the following new\nand amended IFRS Accounting Standards, as adopted by the European Union, were\nin issue but not yet effective:\n\n(i) Amendments to the Classification and Measurement of Financial Instruments\n– Amendments to IFRS 9 and IFRS 7 (effective for annual periods beginning on\nor after 1 January 2026).\n\n The International Accounting Standards Board (IASB) issued targeted\namendments to IFRS 9 and IFRS 7 to respond to recent questions arising in\npractice, and to include new requirements not only for financial institutions\nbut also for corporate entities. Among other amendments, the IASB clarified\nthe date of recognition and derecognition of some financial assets and\nliabilities, with a new exception for some financial liabilities settled\nthrough an electronic cash transfer system.\n\n(ii) IFRS 18 Presentation and Disclosure in Financial Statements (effective\nfor annual periods beginning on or after 1 January 2027).\n\n \n\nThe IASB issued the new standard on presentation and disclosure in financial\nstatements, which replaces IAS 1, with a focus on updates to the statement of\ncomprehensive income.\n\n \n\nThe key new concepts introduced in IFRS 18 relate to:\n\n· the structure of the statement of comprehensive income with defined\nsubtotals;\n\n· the requirement to determine the most useful structured summary for\npresenting expenses in the statement of comprehensive income;\n\n· required disclosures in a single note within the financial statements for\ncertain profit or loss performance measures that are reported outside an\nentity’s financial statements (that is, management-defined performance\nmeasures); and\n\n· enhanced principles on aggregation and disaggregation which apply to the\nprimary financial statements and notes in general.\n\n \n\nThe Company is currently still assessing the effect of the forthcoming\nstandard and amendments.\n\n \n\nNo other new standards or amendments to standards are expected to have a\nmaterial effect on the financial statements of the Company.\n\n \n(b) Financial Instruments\nClassification\n(i) Assets\nThe Company classifies its investments based on both the Company’s business\nmodel for managing those financial assets and the contractual cash flow\ncharacteristics of the financial assets. The portfolio of financial assets is\nmanaged and performance is evaluated on a fair value basis. The Company is\nprimarily focused on fair value information and uses that information to\nassess the assets’ performance and to make decisions. The Company has not\ntaken the option to irrevocably designate any equity securities as fair value\nthrough other comprehensive income. All investments are measured at fair value\nthrough profit or loss. The Company’s investments are included in the\nFinancial assets at fair value through profit and loss line in the Statement\nof Financial Position.\n\n \n(ii) Liabilities\nDerivative contracts that have a negative fair value are presented as\nderivative financial liabilities at fair value through profit or loss. As\nsuch, the Company classifies all of its investment portfolio as financial\nassets or liabilities at fair value through profit or loss. The Company’s\npolicy requires the Manager and the Board of Directors to evaluate the\ninformation about these financial assets and liabilities on a fair value basis\ntogether with other related financial information.\n\n \nRecognition/derecognition\nThe Company recognises a financial asset or a financial liability when, and\nonly when, it becomes a party to the contractual provisions of the instrument.\n\n \n\nPurchases and sales of investments are recognised on their trade date, the\ndate on which the Company commits to purchase or sell the investment.\nInvestments are derecognised when the rights to cash flows from the\ninvestments have expired or the Company has transferred substantially all\nrisks and rewards of ownership. The Company derecognises a financial liability\nwhen the obligation under the liability is discharged, cancelled or expires.\n\n \nMeasurement\nFinancial assets at fair value through profit and loss are measured initially\nat fair value being the transaction price. Transaction costs incurred to\nacquire financial assets at fair value through profit or loss are expensed in\nthe Statement of Comprehensive Income. Transaction costs include fees and\ncommissions paid to agents, advisers, brokers and dealers. Subsequent to\ninitial recognition, all financial assets at fair value through profit or loss\nare measured at fair value. Gains and losses arising from changes in the fair\nvalue of the ‘financial assets at fair value through profit or loss’\ncategory are presented in the Statement of Comprehensive Income in the year in\nwhich they arise.\n\n \n\nThe Company includes transaction costs, incidental to the purchase or sale of\ninvestments within Net gains/(losses) on financial assets at fair value\nthrough profit or loss in the capital column of the Statement of Comprehensive\nIncome and has disclosed them in Note 10 below.\n\n \n\nFair value is the price that would be received to sell an asset or paid to\ntransfer a liability in an orderly transaction between market participants at\nthe measurement date.\n\n \n\nSecurities listed on active markets are valued based on their last bid price\nfor valuation and financial statement purposes.\n\n \n\nEquity Linked Notes are valued based on the available price of the underlying\nasset as at reporting date.\n\n \n\nIn the normal course of business, the Company may utilise Participatory notes\n(‘P Notes’) to gain access to markets that otherwise would not be\nallowable as a foreign investor. P Notes are issued by banks or broker-dealers\nand allow the Company to gain exposure to local shares in foreign markets.\nThey are valued based on the last price of the underlying equity at the\nvaluation date.\n\n \n\nThe Company’s investment in other funds (‘Investee Funds’) are subject\nto the terms and conditions of the respective Investee Fund’s offering\ndocumentation. The investments in Investee Funds are primarily valued based on\nthe latest available redemption price for such units in each Investee Fund, as\ndetermined by the Investee Funds’ administrators. The Company reviews the\ndetails of the reported information obtained for the Investee Funds and\nconsiders the liquidity of the Investee Fund or its underlying investments,\nthe value date of the net asset value provided, any restrictions on\nredemptions and the basis of the Investee Funds’ accounting. If necessary,\nthe Company makes adjustments to the net asset value of the Investee Funds to\nobtain the best estimate of fair value.\n\n \n\nThe Company may make adjustments to the value of a security if it has been\nmaterially affected by events occurring before the Company’s NAV calculation\nbut after the close of the primary markets on which the security is traded.\nThe Company may also make adjustment to the value of its investments if\nreliable market quotations are unavailable due to infrequent trading or if\ntrading in a particular security was halted during the day and did not resume\nprior to the Company’s NAV calculation.\n\n \n\nIn preparing these financial statements the Directors have considered the\nimpact of climate change risk as a principal and as an emerging risk as set\nout below, and have concluded that there was no further impact of climate\nchange to be taken into account as the investments are valued based on market\npricing. In line with IFRS 13 – ”Fair Value Measurement” investments are\nvalued at fair value, which for the Company are quoted bid prices for\ninvestments in active markets at the statement of financial position date.\nInvestments which are unlisted are priced using market-based valuation\napproaches. All investments therefore reflect the market participants view of\nclimate change risk on the investments held by the Company.\n\n \nDerivative Instruments\nWhen appropriate, permitted transactions in derivative instruments are used.\nDerivative transactions into which the Company may enter include long and\nshort contracts for difference (“CFDs”), futures and options.\n\n \n\nUnder IFRS 9 derivatives are classified at fair value through profit or loss\n– held for trading, and are initially accounted and measured at fair value\non the date the derivative contract is entered into and subsequently measured\nat fair value as follows:\n\n· Long and short CFDs – the difference between the strike price and the\nvalue of the underlying shares in the contract based on exchange traded prices\nin an active market;\n\n· Futures contracts – the difference between the contract price and the\nquoted traded price in an active market;\n\n· Exchange traded options – valued based on similar instruments or the\nquoted traded price in an active market for the contract; and\n\n· Forward currency contracts – valued at the appropriate quoted forward\nforeign exchange rate ruling at the Statement of Financial Position date;\n\n· Over the counter options – valued based on indicative quotes received\nfrom independent third party vendors.\n\n \n\nWhere transactions are used to protect or enhance income, if the circumstances\nsupport this, the income and expenses derived are included in derivative\nincome in the revenue column of the Statement of Comprehensive Income. Where\nsuch transactions are used to protect or enhance capital, if the circumstances\nsupport this, the income and expenses derived are included in gains/(losses)\non derivative instruments in the capital column of the Statement of\nComprehensive Income. Any positions on such transactions open at the reporting\ndate are reflected on the Statement of Financial Position at their fair value\nwithin current assets or current liabilities.\n\n \nAmortised cost measurement\nCash at bank, amounts held at futures clearing houses and brokers and other\nreceivables are carried at amortised cost using the effective interest method\nless any allowance for impairment. Gains and losses are recognised in profit\nor loss when the receivables are derecognised or impaired, as well as through\nthe amortisation process.\n\n \n\nCapital gains tax payable and other payables are measured at amortised cost\nusing the effective interest method. Gains and losses are recognised in profit\nor loss when the liabilities are derecognised, as well as through the\namortisation of these liabilities.\n\n \n(c) Foreign Currency Translation\nFunctional and Presentation Currency\nThe Company maintains its books and records in the currency of its primary\neconomic environment, known as its functional currency. The Directors have\ncarefully assessed this environment by considering several factors, including\nthe currency in which the original capital was raised, the currency used for\npast distributions, and the currency in which capital would be returned in the\nevent of a breakup. The Directors have considered the exposure of underlying\ninvestments to different currencies. These considerations ensure the Financial\nStatements accurately reflect the Company’s economic circumstances and\ninvestment exposure.\n\n \n\nThe Directors believe that US dollars best represent the functional currency\nof the Company. The Financial Statements, results and the Statement of\nFinancial Position of the Company are also expressed in US dollars which is\nthe presentation currency of the Company and have been rounded to the nearest\nthousand unless otherwise stated.\n\n \nTransactions and Balances\nTransactions in currencies other than US dollars are recorded at the rates of\nexchange prevailing on the date of the transaction. At the end of each\nreporting period, monetary items and non-monetary assets and liabilities that\nare fair valued and are denominated in foreign currencies are retranslated at\nrates prevailing at the end of the reporting period. Gains and losses arising\non translation are included in the Statement of Comprehensive Income for the\nyear. Foreign exchange gains and losses relating to cash and cash equivalents\nare presented in the Statement of Comprehensive Income within ‘Net foreign\nexchange gains or losses’. Foreign exchange gains and losses relating to\nfinancial assets at fair value through profit or loss and derivatives are\npresented in the Statement of Comprehensive Income within ‘Net gains or\nlosses on investments’ and ‘Net gains on derivative instruments’\nrespectively.\n\n \n(d) Recognition of Dividend and Interest Income\nDividends arising on the Company’s investments are accounted for on an\nex-dividend basis, gross of applicable withholding taxes. Interest on cash at\nbank and collateral is accrued on a day-to-day basis using the effective\ninterest method. Dividends and interest income are recognised in the Statement\nof Comprehensive Income.\n\n \n(e) Income from Derivatives\nDerivative instrument income received from dividends on long (or payable from\nshort) CFDs are accounted for on the date on which the right to receive the\npayment is established, normally the ex-dividend date. The amount net of\nwithholding tax is credited (or charged) to the revenue column of the\nStatement of Comprehensive Income.\n\n \n\nInterest received on CFDs is accounted for on an accruals basis and credited\nto the revenue column of the Statement of Comprehensive Income. Interest\nreceived on CFDs represent the finance costs calculated by reference to the\nnotional value of the CFDs.\n\n \n(f) Finance Costs\nFinance costs comprise bank charges and finance costs paid on CFDs, which are\naccounted for on an accruals basis, and dividends paid on short CFDs, which\nare accounted for on the date on which the obligation to incur the cost is\nestablished, normally the exdividend date. Finance costs are charged in full\nto the revenue column of the Statement of Comprehensive Income.\n\n \n(g) Dividend Distribution\nDividend distributions are at the discretion of the Board of Directors. A\ndividend is recognised as a liability in the period in which it is approved at\nthe Annual General Meeting of the shareholders and is recognised in the\nStatement of Changes in Equity.\n\n \n(h) Cash and Cash Equivalents\nCash comprises current deposits with banks. Cash equivalents are short-term\nhighly liquid investments that are readily convertible to known amounts of\ncash, are subject to an insignificant risk of changes in value, and are held\nfor the purpose of meeting short-term cash commitments rather than for\ninvestment or other purposes.\n\n \n\nBank overdrafts are accounted for as short term liabilities on the Statement\nof Financial Position and the interest expense is recorded using the effective\ninterest rate method. Bank overdrafts are classified as other financial\nliabilities.\n\n \n(i) Amounts held at/due to futures clearing houses and brokers\nCash deposits are held in segregated accounts on behalf of brokers as\ncollateral against open derivative contracts. These are carried at amortised\ncost.\n\n \n(j) Due To and Due From Brokers\nAmounts due from/to brokers are recognised initially at fair value and\nsubsequently measured at amortised cost. At each reporting date, the Company\nshall measure the loss allowance on amounts due from broker at an amount equal\nto the lifetime expected credit losses if the credit risk has increased\nsignificantly since initial recognition. If, at the reporting date, the credit\nrisk has not increased significantly since initial recognition, the Company\nshall measure the loss allowance at an amount equal to 12-month expected\ncredit losses. Significant financial difficulties of the broker, probability\nthat the broker will enter bankruptcy or financial reorganisation, and default\nin payments are all considered indicators that amounts may be credit impaired.\nIf the credit risk increases to the point that it is considered to be credit\nimpaired, interest income will be calculated based on the gross carrying\namount adjusted for the loss allowance. A significant increase in credit risk\nis defined by management as any contractual payment which is more than 30 days\npast due. Any contractual payment which is more than 90 days past due is\nconsidered credit impaired.\n\n \n(k) Other receivables\nOther receivables include amounts receivable on settlement of derivatives,\nsecurities sold pending settlement, accrued income, taxation recoverable and\nother debtors and prepayments incurred in the ordinary course of business. If\ncollection is expected in one year or less they are classified as current\nassets. If not, they are presented as non-current assets. Other receivables\nare recognised initially at fair value and, where applicable, subsequently\nmeasured at amortised cost using the effective interest rate method and as\nreduced by appropriate allowance for estimated irrecoverable amounts.\n\n \n(l) Other payables\nOther payables include amounts payable on settlement of derivatives,\nsecurities purchased pending settlement, investment management fees, amounts\npayable for repurchase of shares, finance costs payable and expenses accrued\nin the ordinary course of business. Other payables are classified as current\nliabilities if payment is due within one year or less. If not, they are\npresented as non-current liabilities. Other payables are recognised initially\nat fair value and, where applicable, subsequently measured at amortised cost\nusing the effective interest rate method.\n\n \n(m) Segment Reporting\nOperating Segments are reported in a manner consistent with the internal\nreporting used by the chief operating decision make (‘CODM’). The CODM,\nwho is responsible for allocation of resources and assisting performance of\nthe operating segments, has been identified as the Directors of the Company,\nas the Directors are ultimately responsible for investment decisions.\n\n \n\nThe Company is engaged in a single segment business and, therefore, no\nsegmental reporting is provided.\n\n \n(n) Management fees and other expenses\nAll expenses are accounted for on an accruals basis and are charged to the\nStatement of Comprehensive Income.\n\nExpenses are allocated wholly to revenue with the following exceptions:\n\n· Management fees are allocated 20% to revenue and 80% to the capital, in\nline with the Board’s expected long-term split of revenue and capital return\nfrom the Company’s investment portfolio; and\n\n· Expenses which are incidental to capital events are charged to capital.\n\n \n(o) Taxation\nThe Company currently incurs withholding taxes imposed by certain countries on\ninvestment income and capital gains taxes upon realisation of its investments.\nSuch income or gains are recorded gross of withholding taxes and capital gains\ntaxes in the Statement of Comprehensive Income. Withholding taxes and capital\ngains taxes are shown as separate items in the Statement of Comprehensive\nIncome.\n\nIn accordance with IAS 12, ‘Income taxes’, the Company is required to\nrecognise a tax liability when it is probable that the tax laws of foreign\ncountries require a tax liability to be assessed on the Company’s capital\ngains sourced from such foreign country, assuming the relevant taxing\nauthorities have full knowledge of all the facts and circumstances. The tax\nliability is then measured at the amount expected to be paid to the relevant\ntaxation authorities, using the tax laws and rates that have been enacted or\nsubstantively enacted by the end of the reporting period. There is sometimes\nuncertainty about the way enacted tax law is applied to offshore investment\nfunds. This creates uncertainty about whether or not a tax liability will\nultimately be paid by the Company. Therefore, when measuring any uncertain tax\nliabilities, management considers all of the relevant facts and circumstances\navailable at the time that could influence the likelihood of payment,\nincluding any formal or informal practices of the relevant tax authorities.\n\n \n(p) Share Capital\nParticipating Preference Shares are not redeemable and there is no obligation\nto pay cash or another financial asset to the holder but are entitled to\nreceive dividends. They are classified as equity. Incremental costs directly\nattributable to the issue of new shares are shown in equity as a deduction\nfrom the proceeds net of tax.\n\n \n(q) Purchase of Own Shares\nThe cost of purchases of the Company’s own shares is shown as a reduction in\nShareholders’ Funds. The Company’s net asset value and return per\nParticipating Preference Share are calculated using the number of shares\noutstanding after adjusting for purchases.\n\n \n(r) Critical Accounting Estimates and Assumptions\nAs stated in Note 2(a) Basis of Preparation, the preparation of financial\nstatements, in conformity with IFRS, requires the use of certain critical\naccounting estimates. It also requires the Board of Directors to exercise its\njudgment in the process of applying the Company’s accounting policies. For\nexample, the Company may, from time to time, hold financial instruments that\nare not quoted in active markets, such as minority holdings in investment and\nprivate equity companies. Fair values of such instruments are determined using\ndifferent valuation techniques validated and periodically reviewed by the\nBoard of Directors.\n\n \n(s) Capital reserve\nThe following are transferred to the capital reserve:\n\n· Gains and losses on the disposal of financial assets at fair value through\nprofit and loss and derivatives instruments;\n\n· Changes in the fair value of financial assets at fair value through profit\nand loss and derivative instruments, held at the year end;\n\n· Foreign exchange gains and losses of a capital nature;\n\n· 80% of management fees;\n\n· Dividends receivable which are capital in nature;\n\n· Taxation charged or credited relating to items which are capital in\nnature; and\n\n· Other expenses which are capital in nature.\n\nThe Company holds 9,025,940 participating preference shares in Treasury which\nhave been excluded from the net asset value and earnings per participating\npreference share calculations from the date of repurchase into Treasury.\n\n \n3. Income\n Year ended 30 June 2026 $’000 Year ended 30 June 2025 $’000 \n Investment income \n UK dividends 1,366 619 \n Overseas dividends 17,500 22,320 \n Interest on securities – 2 \n 18,866 22,941 \n Derivative income \n Dividend income on long CFDs 10,676 14,964 \n Interest income on CFDs 699 1,166 \n Option income 13,972 10,725 \n 25,347 26,855 \n Other income \n Interest income on cash, collateral and money market funds 947 631 \n Interest on capital gains tax refund 16 – \n 963 631 \n Total income 45,176 50,427 \n\nSpecial dividends of $93,000 (2025: $3,230,000) have been recognised in\ncapital.\n\n \n4. Investment Management Fees\n Year ended 30 June 2026 Year ended 30 June 2025 \n Revenue $’000 Capital $’000 Total $’000 Revenue $’000 Capital $’000 Total $’000 \n Investment management fees 934 3,734 4,668 863 3,451 4,314 \n\nFIL Investment Services (UK) Limited is the Company’s Alternative Investment\nFund Manager (the “Manager”) and has delegated investment management to\nFIL Investments International (FII). Both companies are Fidelity group\ncompanies.\n\n \n\nFII charges an investment management fee of 0.60% per annum of the Net Asset\nValue of the Company. Fees are payable monthly in arrears and calculated on a\ndaily basis. Investment management fees have been allocated 80% to the capital\nreserve in accordance with the Company’s accounting policies.\n\n \n\nManagement fees incurred by collective investment schemes or investment\ncompanies invested into by the Company managed or advised by the Investment\nManager are reimbursed.\n\n \n5. Other Expenses\n Year ended 30 June 2026 $’000 Year ended 30 June 2025 $’000 \n Allocated to revenue: \n Custodian fees 316 251 \n Directors’ fees 307 264 \n Directors’ expenses 131 30 \n Administration fees 223 216 \n Audit fees 116 116 \n Legal and professional fees 396 83 \n Marketing expenses 468 334 \n Other expenses 249 350 \n 2,206 1,644 \nAdministration fees\nThe Administrator is entitled to receive a fee, payable monthly, based on the\nNet Asset Value of the Company and time incurred.\n\n \nCustodian fee\nUnder the Custodian Agreement, the Custodian to the Company is entitled to\nreceive a fee payable monthly, based on the Net Asset Value of the Company.\nAll custody services are performed by JP Morgan Chase Bank.\n\n \n\nThe Company also incurs charges and expenses of other organisations with whom\nsecurities are held. The total of all Custodian fees for the year represented\napproximately 0.04% (2025: 0.04%) per annum of the average Net Assets of the\nCompany.\n\n \n6. Finance Costs\n Year ended 30 June 2026 Year ended 30 June 2025 \n Revenue $’000 Capital $’000 Total $’000 Revenue $’000 Capital $’000 Total $’000 \n Dividends on short CFDs 2,352 – 2,352 3,506 – 3,506 \n Interest on CFDs 21,171 – 21,171 20,198 – 20,198 \n 23,523 – 23,523 23,704 – 23,704 \n7. Taxation\n Year ended 30 June 2026 Year ended 30 June 2025 \n Revenue $’000 Capital $’000 Total $’000 Revenue $’000 Capital $’000 Total $’000 \n Capital gains tax – 785 785 – 3,162 3,162 \n Overseas taxation 2,110 – 2,110 2,347 – 2,347 \n 2,110 785 2,895 2,347 3,162 5,509 \n\nThe Company is exempt from taxation in Guernsey under the provisions of the\nIncome Tax (Exempt Bodies) (Guernsey) Ordinance, 2012. As such, the Company is\nliable to pay a fixed annual fee, currently £1,600 (2025: £1,600).\n\n \n\nIncome due to the Company is subject to withholding taxes. The Manager\nundertakes regular reviews of the tax situation of the Company and believes\nthat withholding taxes on dividend income and capital gains taxes on capital\ngains are currently the material transactions that generate the amounts of tax\npayable.\n\n \n\nIn accordance with IAS 12, ‘Income taxes’, where necessary the Company\nprovides for deferred taxes on any capital gains/losses on the revaluation of\nsecurities in such jurisdictions where capital gains tax is levied.\n\n \n\nThe capital gains charge has been calculated on the basis of the tax laws\nenacted or substantially enacted at the reporting date in the countries where\nthe Company’s investments generate taxable income on realisation. The\nManager, on behalf of the Board, periodically evaluates which applicable tax\nregulations are subject to interpretation and establishes provisions when\nappropriate.\n\n \n\nAs at 30 June 2026, $1,282,000 capital gains tax refund was recognised in the\nStatement of Financial Position (2025: $2,140,000 capital gains tax\nprovision).\n\n \n8. Basic and diluted earnings per Participating Preference Share\n Year ended 30 June 2026 Year ended 30 June 2025 \n Revenue earnings per Participating Preference Share $0.32 $0.31 \n Capital earnings per Participating Preference Share $8.23 $1.52 \n Total earnings per Participating Preference Share (basic and diluted) $8.55 $1.83 \n\nThe basic and diluted earnings per Participating Preference Share is based on\nthe profit after taxation for the year divided by the weighted average number\nof Participating Preference Shares held outside of Treasury during the year,\nas shown below:\n\n $’000 $’000 \n Revenue profit after taxation for the year 16,403 21,869 \n Capital profit after taxation for the year 415,400 105,117 \n Total profit after taxation for the year 431,803 126,986 \n\n \n\n Number Number \n Weighted average number of Participating Preference Shares held outside of Treasury 50,507,081 69,485,764 \n9. Dividends Paid to Shareholders\n Year ended 30 June 2026 $’000 Year ended 30 June 2025 $’000 \n Dividend paid \n 2025 final dividend of 26.0¢ (2024: 20.0¢) per Participating Preference Share 12,338 14,103 \n Total dividend paid 12,338 14,103 \n \n Dividend proposed \n 2026 final dividend of 33.0¢ (2025: 26.0¢) per Participating Preference Share 12,993 16,729 \n Total dividend proposed 12,993 16,729 \n\nThe Directors have proposed the payment of a final dividend for the year ended\n30 June 2026 of 33.0¢ per Participating Preference Share, which is subject to\napproval by shareholders at the Annual General Meeting on 1 December 2026 and\nhas not been included as a liability in these financial statements. The\ndividend will be paid on 8 December 2026 to shareholders on the register at\nthe close of business on 13 November 2026 (ex-dividend date 12 November 2026).\n\n \n10. Investments at Fair Value through Profit or Loss\n 30 June 2026 $’000 30 June 2025 $’000 \n Investments \n Equity securities 759,695 708,476 \n Investee funds 7,750 4,385 \n Total investments 767,445 712,861 \n \n Opening book cost 654,401 695,828 \n Opening unrealised gains 58,460 925 \n Opening fair value of investments 712,861 696,753 \n Movements in the year \n Purchases at cost 921,043 740,453 \n Sales – proceeds (1,247,976) (805,324) \n Gains on investments 381,517 80,979 \n Closing fair value 767,445 712,861 \n Closing book cost 586,286 654,401 \n Closing unrealised gains 181,159 58,460 \n Closing fair value of investments 767,445 712,861 \nGains/(losses) on Investments at fair value through profit or loss\n Year ended 30 June 2026 $’000 Year ended 30 June 2025 $’000 \n Realised gains/(losses) on investments \n Realised gains 333,101 103,003 \n Realised losses (74,283) (79,559) \n Net realised gains on investments 258,818 23,444 \n Change in unrealised gains/(losses) on investments 1 \n Change in unrealised gains on investments 324,822 31,166 \n Change in unrealised losses on investments (202,123) 26,369 \n Net change in unrealised gains on investments 122,699 57,535 \n Net gains on investments 381,517 80,979 \n\n1. The change in unrealised gains/(losses) on investments is calculated as\nthe difference between the total unrealised investments gains/(losses)\nrecognised in the Statement of Financial Position at reporting date and the\ntotal unrealised investments gains/(losses) position recognised at the\ncomparative date.\n\n \n\nThe Company received $1,247,976,000 (2025: $805,324,000) from investments at\nfair value sold in the year. The book cost of these investments at fair value\nwhen they were purchased was $989,158,000 (2025: $781,880,000). These\ninvestments have been revalued over time and until they were sold any\nunrealised gains/losses were included in the fair value of the investments at\nfair value through profit or loss.\n\n \n\nInvestment transaction costs incurred in the acquisition and disposal of\ninvestments, which are included in the gains on investments at fair value\nthrough profit and loss were as follows:\n\n Year ended 30 June 2026 $’000 Year ended 30 June 2025 $’000 \n Purchases transaction costs 955 930 \n Sales transaction costs 1,993 1,081 \n 2,948 2,011 \n11. Derivative Instruments\n Year ended 30 June 2026 $’000 Year ended 30 June 2025 $’000 \n Realised gains/(losses) on derivative instruments \n Gains on CFDs 484,341 194,933 \n Gains on futures contracts 14,121 30,630 \n Gains on options 15,135 17,153 \n Gains on forward currency contracts 2,315 1,881 \n Losses on CFDs (376,594) (146,864) \n Losses on futures contracts (95,233) (31,875) \n Losses on options (20,564) (20,472) \n Losses on forward currency contracts (403) (2,539) \n Net realised gains on derivative instruments 23,118 42,847 \n Change in unrealised gains/(losses) on derivative instruments1 \n Change in unrealised gains on CFDs 20,224 (7,695) \n Change in unrealised gains on futures contracts 4,691 74 \n Change in unrealised gains on options 972 (1,835) \n Change in unrealised gains on forward currency contracts 118 (293) \n Change in unrealised losses on CFDs (9,934) (2,452) \n Change in unrealised losses on futures contracts 4,137 (2,248) \n Change in unrealised losses on options (1,682) 3,828 \n Net change in unrealised gains/(losses) on derivative instruments 18,526 (10,621) \n Net gains on derivative instruments 41,644 32,226 \n\n \n\n 30 June 2026 Fair value $’000 30 June 2025 Fair value $’000 \n Fair value of derivative instruments recognised on the Statement of Financial Position 2 \n Derivative instrument assets 41,149 15,006 \n Derivative instrument liabilities (22,142) (15,784) \n 19,007 (778) \n\n1. The change in unrealised gains/(losses) on each type of derivative\ncontract is calculated as the difference between the total unrealised\ngains/(losses) on the relevant derivative positions recognised in the\nStatement of Financial Position at reporting date and the total unrealised\ngains/(losses) on the relevant derivative positions recognised at the\ncomparative date.\n\n2. The fair value hierarchy of the derivative instruments is shown in Note\n17.\n\n \n\n 30 June 2026 30 June 2025 \n Fair value $’000 Asset exposure $’000 Fair value $’000 Asset exposure $’000 \n At the year end the Company held the following derivative instruments \n Long CFDs 5,554 572,585 2,037 433,157 \n Short CFDs 6,170 199,865 (603) 180,705 \n Long future contracts 67 6,954 (45) 16,965 \n Short future contracts 785 23,282 (942) 28,958 \n Short futures contracts (hedging exposure) 4,182 (205,692) (2,808) (160,910) \n Long call option contracts 5,054 19,404 3,865 21,474 \n Short put option contracts – – 79 680 \n Short call option contracts (hedging exposure) (1,367) (10,413) (827) (10,949) \n Long put option contracts (1,626) 12,662 (1,605) 12,313 \n Forward currency contracts 188 – 71 – \n 19,007 618,647 (778) 522,393 \n12. Other Receivables\n 30 June 2026 $’000 30 June 2025 $’000 \n CFD interest receivable 32 – \n CFD dividends receivable 1,286 2,235 \n Securities sold for future settlement 8,597 3,389 \n Amounts receivable on settlement of derivatives 1,085 1,632 \n Accrued income 668 2,166 \n Taxation recoverable 2,626 – \n Other receivables 39 82 \n 14,333 9,504 \n13. Other Payables\n 30 June 2026 $’000 30 June 2025 $’000 \n CFD interest payable 1,060 1,018 \n CFD dividends payable 1,000 1,111 \n Securities purchased for future settlement 4,266 6,086 \n Amounts payable on settlement of derivatives 1,655 9 \n Investment management fees 444 365 \n Custodian fees 47 45 \n Directors’ fees 76 66 \n Amounts payable for repurchase of shares held in Treasury – 1,048 \n Amounts payable for repurchase of shares for cancellation 2,320 – \n Capital gains tax payable 1,344 2,140 \n Accrued expenses 276 143 \n 12,488 12,031 \n14.  Share Capital\n 2026 Number of shares 2025 Number of shares \n Authorised and Issued \n Founder shares of no par value 1,000 1,000 \n Issued \n Participating Preference Shares held outside of Treasury \n Beginning of the year 64,342,245 74,646,287 \n Participating Preference Shares repurchased and cancelled (8,527,914) – \n Participating Preference Shares repurchased and cancelled for Strathclyde Pension Fund (16,441,177) – \n Participating Preference Shares repurchased into Treasury – (10,304,042) \n End of the year 39,373,154 64,342,245 \n Participating Preference Shares held in Treasury 1 \n Beginning of the year 13,225,940 2,921,898 \n Participating Preference Shares repurchased into Treasury – 10,304,042 \n Participating Preference Shares cancelled from Treasury (4,200,000) – \n End of the year 9,025,940 13,225,940 \n \n Total Participating Preference Shares 48,399,094 77,568,185 \n\n1 The ordinary shares held in Treasury carry no rights to vote, to receive a\ndividend or to participate in a winding up of the Company.\n\n \n\nThe total costs associated with the repurchase of the shares of $327,090,000\nwere charged to the capital reserve for the year ended 30 June 2026. (30 June\n2025: $94,701,000).\n\n \n\nIn November 2025, the Company completed the repurchase of 16,441,177\nParticipating Preference Shares from the Strathclyde Pension Fund,\nrepresenting approximately 25.7% of the Company’s voting share capital. The\nshares were repurchased at an agreed discount of 14% to NAV and subsequently\ncancelled. As the Company’s share price discount to NAV at the time of\ncompletion was less than 10%, the transaction resulted in an immediate uplift\nof more than 4.5% in NAV per share for continuing shareholders.\n\n \n\nThe Company may issue an unlimited number of Unclassified Shares of no par\nvalue.\n\n \nFounder Shares\nThe Founder Shares are non-redeemable and carry no rights other than the right\nto vote at general meetings of the Company. On a poll, each holder is entitled\nto one vote. The Founder Shares are no par value shares.\n\n \nTreasury Shares\nAs at 30 June 2026, the Company held 9,025,940 shares in Treasury (2025:\n13,225,940).\n\n \nParticipating Preference Shares\nThe holders of Participating Preference Shares rank ahead of holders of any\nother class of share in issue in the event of winding up and are entitled to\nparticipate in any surplus assets available for distribution. The\nParticipating Preference Shares confer the right to receive discretionary\ndividends declared by the Company and, at general meetings, on a poll, confer\none vote in respect of each Participating Preference Share held.\n\n \n\nThe Participating Preference Shares are classified as equity as they represent\na residual interest in the net assets of the Company and do not give rise to a\ncontractual obligation on the Company to deliver cash or another financial\nasset. All classes of share capital are classified as equity in accordance\nwith IAS 32 ‘Financial Instruments: Presentation’, as the shares are\nnon-redeemable and do not impose any contractual obligation on the Company to\ndeliver cash or another financial asset to the holders.\n\n \n15. Capital and Reserves\n Share premium account $’000 Capital reserve $’000 Revenue reserve $’000 Total equity $’000 \n At 1 July 2025 6,291 706,238 59,099 771,628 \n Net gains on investments at fair value through profit or loss (see Note 10) – 381,517 – 381,517 \n Net gains on derivative instruments (see Note 11) – 41,644 – 41,644 \n Net foreign exchange losses – (3,242) – (3,242) \n Management fees (see Note 4) – (3,734) – (3,734) \n Capital gains tax (see Note 7) – (785) – (785) \n Participating Preference Shares repurchased and cancelled (see Note 14) – (132,253) – (132,253) \n Participating Preference Shares repurchased and cancelled for Strathclyde Pension – (193,927) – (193,927) \n Fund (see Note 14)* \n Buyback expenses – (910) – (910) \n Revenue profit after taxation for the year – – 16,403 16,403 \n Dividends paid to shareholders (see Note 9) – – (12,338) (12,338) \n At 30 June 2026 6,291 794,548 63,164 864,003 \n\n* In November 2025, the Company completed the repurchase of a large\nshareholding (16.4 million shares) from the Strathclyde Pension Fund,\nequivalent to roughly 25% of the shares in issue. These shares were bought\nback at an agreed 14% discount to NAV and subsequently cancelled. Given the\nshare price discount to NAV at the time of the repurchase was less than 10%,\nthe transaction led to an immediate uplift of more than 4.5% in the NAV per\nshare for continuing shareholders, underlining the Company’s commitment to a\nfair outcome for all its investors.\n\n \n\n Share premium account $’000 Capital reserve $’000 Revenue reserve $’000 Total equity $’000 \n At 1 July 2024 6,291 695,822 51,333 753,446 \n Net gains on investments at fair value through profit or loss (see Note 10) – 80,979 – 80,979 \n Net gains on derivative instruments (see Note 11) – 32,226 – 32,226 \n Net foreign exchange losses – (1,475) – (1,475) \n Management fees (see Note 4) – (3,451) – (3,451) \n Capital gains tax (see Note 7) – (3,162) – (3,162) \n Participating Preference Shares repurchased into Treasury (see Note 14) – (94,701) – (94,701) \n Revenue profit after taxation for the year – – 21,869 21,869 \n Dividend paid to shareholders (see Note 9) – – (14,103) (14,103) \n At 30 June 2025 6,291 706,238 59,099 771,628 \nShare Premium\nShare Premium is the amount by which the value of shares subscribed for\nexceeded their nominal value at the date of issue.\n\n \n\nThe capital reserve balance at 30 June 2026 includes unrealised investment\nholding gains of $181,159,000 (2025: gains of $58,460,000) as detailed in Note\n10.\n\n \n16. Net Asset Value per Participating Preference Share\nThe calculation of the net asset value per Participating Preference Share is\nbased on the net assets divided by the number of Participating Preference\nShares held outside of Treasury:\n\n 30 June 2026 30 June 2025 \n Net assets $864,003,000 $771,628,000 \n Participating Preference Shares held outside of Treasury 39,373,154 64,342,245 \n Net asset value per Participating Preference Share $21.94 $11.99 \n  17. Financial Instruments\nManagement of risk\nThe Company’s investing activities in pursuit of its investment objective\ninvolve certain inherent risks. The Board confirms that there is an ongoing\nprocess for identifying, evaluating and managing the risks faced by the\nCompany. The Board, with the assistance of the Investment Manager, has\ndeveloped a risk matrix which, as part of the internal control process,\nidentifies the risks that the Company faces. Risks are identified and graded\nin this process, together with steps taken in mitigation, and are updated and\nreviewed on an ongoing basis. Risks identified are shown in the Strategic\nReport.\n\n \n\nThis note, prepared in accordance with IFRS 7: Financial Instruments –\nDisclosures, describes the Company’s exposure to financial instrument risks\nat the reporting date and the Company’s related risk management objectives,\npolicies and processes.\n\n \n\nThe Company’s financial instruments may comprise:\n\n· Equity shares (listed and unlisted), preference shares, equity linked\nnotes, convertible bonds, rights issues, holdings in investment companies and\nprivate placements;\n\n· Derivative instruments including CFDs, warrants, futures and options\nwritten or purchased on stocks and equity indices and forward currency\ncontracts; and\n\n· Cash, liquid resources and short-term receivables and payables that arise\nfrom its operation; and\n\n· Bank borrowings.\n\n \n\nThe risks identified by IFRS 7 arising from the Company’s financial\ninstruments are market price risk (which comprises interest rate risk, foreign\ncurrency risk and other price risk), liquidity risk, credit and counterparty\nrisk and derivative instrument risk. The Board reviews and agrees policies for\nmanaging each of these risks, which are summarised below. These policies are\nconsistent with those followed last year.\n\n \nInterest rate risk\nThe Company finances its operations through its capital and reserves. In\naddition, the Company has gearing through the use of derivative instruments.\nThe level of gearing is reviewed by the Board and the Investment Manager. The\nCompany is exposed to a financial risk arising as a result of any increases in\ninterest rates associated with the funding of the derivative instruments.\n\n \nInterest rate risk exposure\nThe amounts of the Company’s financial instruments that are exposed to\nmovements in interest rates are shown below:\n\n 30 June 2026 $’000 30 June 2025 $’000 \n Exposure to financial instruments that bear interest \n Long CFDs – exposure less fair value 567,031 431,120 \n Bank overdraft 7 – \n 567,038 431,120 \n Exposure to financial instruments that earn interest \n Short CFDs – exposure plus fair value 206,035 180,102 \n Amounts held at futures clearing houses and brokers 42,884 52,521 \n Cash and cash equivalents 32,829 9,551 \n 281,748 242,174 \n Net exposure to financial instruments that bear interest (285,290) (188,946) \n  Interest rate risk sensitivity analysis\nBased on the financial instruments held and interest rates at the statement of\nfinancial position date, an increase of 1% in interest rates throughout the\nyear, with all other variables held constant, would have decreased the net\nprofit after taxation for the year and decreased the net assets of the Company\nby $2,853,000 (2025: decreased the net profit after taxation for the year and\ndecreased the net assets of the Company by $1,889,000). A decrease of 1% in\ninterest rates throughout the year would have had an equal but\nopposite effect.\n\n \nForeign currency risk\nThe Company invests in financial instruments and enters into transactions\ndenominated in currencies other than its functional currency. Consequently,\nthe Company is exposed to risks that the exchange rate of its functional\ncurrency relative to other foreign currencies may change in a manner that has\nan adverse effect on the value of that portion of the Company’s assets or\nliabilities denominated in currencies other than US dollars (functional\ncurrency) or UK Sterling (the currency in which shares are traded on the\nLondon Stock Exchange).\n\n \n\nThree principal areas have been identified where foreign currency risk could\nimpact the Company:\n\n· Movements in currency exchange rates affecting the value of investments\nand derivatives exposures;\n\n· Movements in currency exchange rates affecting short-term timing\ndifferences, for example, between the date when an investment is bought or\nsold and the date when settlement of the transaction occurs; and\n\n· Movements in currency exchange rates affecting income received.\n\n \nCurrency exposure of financial assets and liabilities\nThe Company’s financial assets comprise of investments, positions on\nderivative instruments, short-term debtors, cash and cash equivalents.\n\n \n\nThe Company finances its investment activities through its ordinary share\ncapital and reserves. The Company’s financial liabilities comprise positions\non derivative instruments and other payables.\n\nThe net currency exposure profile of these financial assets/(liabilities) is\nshown below:\n\n Currency Investments held at fair value through profit or loss $’000 Asset/ (liabilities) exposure of derivative instruments 1 $’000 Cash, cash equivalents and other receivables/ (payables) 2 $’000 2026 Total foreign currency risk $’000 \n Brazilian real 54,710 – 220 54,930 \n Canadian dollar 18,086 32,684 27 50,797 \n Chinese yuan renminbi 67,366 – – 67,366 \n Euro 14,167 4,698 443 19,308 \n Sterling 4,590 22,689 3,403 30,682 \n Hong Kong dollar 1,146 43,142 1,275 45,563 \n Hungarian forint 22,221 – 1,382 23,603 \n Indian rupee 55,059 (23,251) 23,507 55,315 \n Indonesian rupiah 22,466 – (210) 22,256 \n Japanese yen – (17,465) – (17,465) \n Korean won 187,525 (31) 2,798 190,292 \n Mexican peso 16,841 8,895 (10) 25,726 \n Nigerian naira 11,972 – 360 12,332 \n Sol 10,648 – – 10,648 \n Philippine peso 1,950 – – 1,950 \n Polish złoty 14,974 (10,097) 3,020 7,897 \n Romanian leu 1,681 – (520) 1,161 \n Turkish lira 23,070 – – 23,070 \n Taiwan dollar 179,134 – 402 179,536 \n United States dollar 19,531 79,564 40,983 140,078 \n Vietnamese dong 11,215 – – 11,215 \n South African rand 29,093 34,222 (151) 63,164 \n Other currencies – (2,509) 622 (1,887) \n 767,445 172,541 77,551 1,017,537 \n\n1. The asset exposure of long and short derivative positions is after the\nnetting of hedging exposures and forward currency contracts.\n\n2. Includes amounts held at futures clearing houses and brokers.\n\n \n\n Currency Investments held at fair value through profit or loss $’000 Asset/ (liabilities) exposure of derivative instruments 1 $’000 Cash, cash equivalents and other receivables/ (payables) 2 $’000 2025 Total foreign currency risk $’000 \n Brazilian real 40,116 – 213 40,329 \n Canadian dollar 29,984 24,222 (22) 54,184 \n Chinese yuan renminbi 15,173 – – 15,173 \n Euro 26,672 (7,301) 80 19,451 \n Hong Kong dollar 15,298 104,635 752 120,685 \n Hungarian forint 19,303 – – 19,303 \n Indian rupee 108,157 (15,666) 27,173 119,664 \n Indonesian rupiah 33,375 – – 33,375 \n Japanese yen – (13,964) (197) (14,161) \n Korean won 20,415 (10,485) 5,011 14,941 \n Mexican peso 41,652 10,191 55 51,898 \n Nigerian naira 12,067 – 324 12,391 \n Poland złoty 16,704 (14,578) 13 2,139 \n Romanian Leu 11,310 – (31) 11,279 \n Saudi riyal 4,402 – 385 4,787 \n Sol 8,557 – 1,024 9,581 \n South African rand 83,832 75,841 (52) 159,621 \n Sterling – 34,563 861 35,424 \n Swedish krona – (10,825) 108 (10,717) \n Taiwan dollar 127,956 – 478 128,434 \n Turkish lira 9,226 – – 9,226 \n United Arab Emirates dirham 19,003 – – 19,003 \n United States dollar 52,796 (73,794) 22,061 1,063 \n Vietnamese dong 16,863 – 1,304 18,167 \n Other currencies – (2,099) 5 (2,094) \n 712,861 100,740 59,545 873,146 \n\n1. The asset exposure of long and short derivative positions is after the\nnetting of hedging exposures and forward currency contracts.\n\n2. Includes amounts held at futures clearing houses and brokers.\n  Foreign currency risk management\nThe sensitivity analysis below illustrates the estimated impact on net assets\nof a 5% movement in the US dollar against the basket of currencies to which\nthe Company is exposed, with all other variables held constant. A weakening of\nthe US dollar would increase net assets, while a strengthening of the US\ndollar would decrease net assets. The estimated impacts are presented in the\ntable below.\n\n \n\nThe Investment Manager does not consider it meaningful to assess foreign\ncurrency risk in isolation. As the Company’s net asset value is denominated\nin US dollars, the Investment Manager considers net asset value to be the most\nappropriate measure of the overall risk of the portfolio.\n\n \n\n Impact on net assets ($’000) 2026 2025 \n US dollar weakened by 5% 46,374 46,116 \n US dollar strengthened by 5% (41,968) (41,731) \n  Market price risk\nMarket price risk is the risk that value of the instrument will fluctuate as a\nresult of changes in market prices (other than those arising from foreign\ncurrency risk and interest rate risk), whether caused by factors specific to\nan individual investment, its issuer, or all factors affecting all instruments\ntraded in the market.\n\n \nMarket price risk management\nMarket price risk is managed by the Investment Manager through:\n\n(i) a disciplined stock selection and investment process; and\n\n(ii) limiting exposure to individual investments through diversification and\nthe application of investment restrictions.\n\nThe Board reviews the composition and performance of the investment portfolio\nat its regular meetings. Details of the portfolio’s country and sector\nexposures, and the Company’s largest holdings, are set in the report and\ndemonstrate the diversified nature of the portfolio.\n\n \n\nThe Investment Manager has identified the MSCI Emerging Markets Index total\nreturn as a relevant reference point for the markets in which the Company\ninvests. The Company is managed on an active basis and not to track the\nperformance of the MSCI Emerging Markets Index total return, or any other\nindex or benchmark. The Company’s performance is relative to the MSCI\nEmerging Markets Index total return and is presented in the Financial\nHighlights section.\n\n \nMarket price risk – Investee Funds\nThe Company’s investments in Investee Funds are subject to the terms and\nconditions of the respective Investee Fund’s offering documentation and are\nsusceptible to market price risk arising from uncertainties about future\nvalues of those Investee Funds. The Investment Manager undertakes due\ndiligence when selecting and monitoring Investee Funds. Investee Funds in the\nportfolio are managed by the Investment Manager who is compensated by the\nrespective Investee Funds for their services. Such compensation consists of an\nasset based fee and a performance based incentive fee and is reflected in the\nvaluation of the Company’s investment in each of the Investee Funds.\n\n \n\nThe exposure to investments in Investee Funds at fair value is disclosed as\npart of the note below and included in ‘Financial assets at fair value\nthrough profit or loss’ in the Statement of Financial Position. The\nCompany’s maximum exposure to loss from its interests in Investee Funds is\nequal to the total fair value of these investments.\n\n \n\nTotal purchases in Investee Funds amounted $nil (2025: $nil). Total sales\namounted to $740,000 (2025: $1,138,000). As at 30 June 2026 and 2025 there\nwere no capital commitment obligations and no amounts due to Investee Funds\nfor unsettled purchases.\n\n \nOther price risk\nOther price risk arises mainly from uncertainty about future prices of\nfinancial instruments. It represents the potential loss the Company might\nsuffer through price movements in its investment positions. The Board meets\nquarterly to consider the asset allocation of the portfolio and the risk\nassociated with particular industry sectors within the parameters of the\ninvestment objective.\n\n \n\nThe Investment Manager is responsible for actively monitoring the portfolio\nselected in accordance with the overall asset allocation parameters and seeks\nto ensure that individual stocks also meet an acceptable risk/reward profile.\nOther price risks arising from derivative positions, mainly due to the\nunderlying exposures, are assessed by the Investment Manager’s specialist\nderivative instruments team.\n\n \nOther price risk sensitivity\nThe following table illustrates the sensitivity of the profit after taxation\nfor the year and net assets to a 10% (2025: 10%) increase or decrease in the\nfair value of investments. This level of change is considered to be a\nreasonable illustration based on observation of current market conditions.\nThe sensitivity analysis is based on investments with all other variables held\nconstant.\n\n \n\nThe other price sensitivity analysis is based on the valuation of investments\ndirectly held by the Company. For underlying investment funds this is based on\nthe net assets of such underlying funds as included in the Company’s\nportfolio of investments at reporting date.\n\n \n\nThe values of certain investments, in particular positions held in underlying\nfunds may vary due to currency, interest rate and credit risks and such risks\nare not directly considered in the other price risk sensitivity analysis.\n\n \n\nEffect of a 10% increase/(decrease) in fair value:\n\n 2026 2025 \n 10% increase in fair value $’000 10% decrease in fair value $’000 10% increase in fair value $’000 10% decrease in fair value $’000 \n Total profit after taxation for the year 76,745 (76,745) 71,286 (71,286) \n Net assets 76,745 (76,745) 71,286 (71,286) \n  Liquidity risk\nLiquidity risk is the risk that the Company will encounter difficulties in\nmeeting obligations associated with financial liabilities. The Company’s\nassets mainly comprise readily realisable securities and derivative\ninstruments which can be sold easily to meet funding commitments if necessary.\nShort-term flexibility is achieved by the use of a bank overdraft, if\nrequired.\n\n \n\nThe liquidity risk profile of the Company was as follows:\n\n 30 June 2026 $’000 30 June 2025 $’000 \n Amounts due within one month \n Securities purchased for future settlement 4,266 6,086 \n Amounts payable for repurchase of shares held in Treasury – 1,048 \n Amounts payable for repurchase of shares for cancellation 2,320 – \n Amounts payable on settlement of derivatives 1,655 9 \n Derivative liabilities 1 19,627 10,773 \n Forward currency contracts 17,465 15,117 \n CFD interest payable 1,060 1,018 \n CFD dividends payable 1,000 1,111 \n Custodian fees 47 45 \n Investment management fees 444 365 \n Directors’ fees 76 66 \n Bank overdraft 7 – \n Accrued expenses 276 143 \n Amounts due within one year \n Derivative liabilities 1 2,515 5,011 \n Capital gains tax payable 1,344 2,140 \n Total liabilities 52,102 42,932 \n\n1.  Includes CFDs, options and future contracts.\n  Liquidity risk management\nThe restrictions on concentration and the diversification requirements\ndetailed above referred to under market price risk also assist in mitigating\nliquidity risk by reducing exposure to individual investments and markets in\nwhich the Company operates.\n\n \n\nThe Company has no payables past their due dates as at 30 June 2026 (2025:\nnil).\n\n \nCredit and counterparty risk\nCredit risk is the risk that a counterparty to a financial instrument will\nfail to discharge an obligation or commitment it has entered into with the\nCompany. Financial instruments may be adversely affected if any of the\ninstitutions with which money is deposited suffer insolvency or other\nfinancial difficulties. All transactions are carried out with brokers that\nhave been approved by the Investment Manager and are settled on a delivery\nversus payment basis. Limits are set on the amount that may be due from any\none broker and are kept under review by the Investment Manager. Exposure to\ncredit risk arises on outstanding security transactions and derivative\ninstrument contracts and cash at bank. The Company only engages with approved\ncounterparties that are rated investment grade or above.\n\n \n\nThe Company has no receivables past their due dates as at 30 June 2026 (2025:\nnil).\n\n \nCredit risk management\nCertain derivative instruments in which the Company may invest are not traded\non an exchange but instead will be traded between counterparties based on\ncontractual relationships, under the terms outlined in the International Swaps\nand Derivatives Association’s (“ISDA”) market standard derivative legal\ndocumentation. These are known as Over The Counter (“OTC”) trades. As a\nresult, the Company is subject to the risk that a counterparty may not perform\nits obligations under the related contract. In accordance with the risk\nmanagement process which the Investment Manager employs, this risk is\nminimised by only entering into transactions with counterparties which are\nbelieved to have an adequate credit rating at the time the transaction is\nentered into, by ensuring that formal legal agreements covering the terms of\nthe contract are entered into in advance, and through adopting a counterparty\nrisk framework which measures, monitors and manages counterparty risk by the\nuse of internal and external credit agency ratings and evaluates derivative\ninstrument credit risk exposure.\n\n \n\nThe maximum exposure to credit risk at 30 June is the carrying amount of the\nfinancial assets as set out below.\n\n 30 June 2026 Amounts due within 1 year $’000 30 June 2025 Amounts due within 1 year $’000 \n Derivative assets 1 40,961 14,935 \n Forward currency contracts 17,653 15,188 \n Securities sold for future settlement 8,597 3,389 \n Amounts receivable on settlement of derivatives 1,085 1,632 \n Amounts held at futures clearing houses and brokers 42,884 52,521 \n Cash and cash equivalents 32,829 9,551 \n CFD dividends receivable 1,286 2,235 \n CFD interest receivable 32 – \n Taxation recoverable 2,626 – \n Accrued income 668 2,166 \n Other receivables 39 82 \n 148,660 101,699 \n\n1.  Includes CFDs, options and future contracts.\n\nNone of these assets are impaired or past due at the reporting date.\n\nT\n\nhe Company primarily engages with counterparties that have strong credit\nratings and a proven track record of financial stability, thereby minimising\nthe risk of default. The creditworthiness of its counterparties and investment\npositions are reviewed on a regular basis. On this basis the Company has\nassessed the credit risk associated with its financial assets and concluded\nthat the likelihood of credit losses is minimal, and therefore, no provisions\nfor expected credit losses have been made.\n\n \nCollateral\nFor OTC and exchange traded derivative transactions, collateral is used to\nreduce the risk of both parties to the contract. Collateral is managed on a\ndaily basis for all relevant transactions and held in segregated collateral\naccounts. Collateral can be held by brokers on behalf of the Company to reduce\nthe credit risk exposure of the Company or held by the Company on behalf of\nbrokers to reduce the credit risk exposure of the brokers. All collateral\nreceived or pledged at reporting date is in form of cash. The value of\ncollateral received from brokers and pledged to brokers is shown below:\n\n 30 June 2026 30 June 2025 \n Collateral received $’000 Collateral pledged $’000 Collateral received $’000 Collateral pledged $’000 \n Bank of America Merrill Lynch International – – – 410 \n Goldman Sachs International Ltd 7,450 – 4,890 – \n J.P. Morgan Securities plc – 2,170 – 970 \n Morgan Stanley & Co. International Ltd 9,650 – – 640 \n HSBC Bank plc – 160 380 – \n UBS AG – 40,554 430 50,501 \n 17,100 42,884 5,700 52,521 \n  Derivative instrument risk\nThe risks and risk management processes which result from the use of\nderivative instruments, are set out in a Risk Management Process document.\nDerivative instruments are used by the Investment Manager for the following\npurposes:\n\n· to gain exposure to equity markets, sectors or individual investments;\n\n· to hedge equity market risk in the Company’s investments with the\nintention of mitigating losses in the events market falls;\n\n· to enhance portfolio returns by writing call and put options; and\n\n· to take short positions in equity markets, sectors or individual\ninvestments which would benefit from a fall in the relevant market price,\nwhere the Investment Manager believes the investment is overvalued. These\npositions distinguish themselves from other short exposures held for hedging\npurposes since they are expected to add risk to the portfolio.\n\nThe risk and investment performance of these instruments are managed by an\nexperienced, specialist derivative team of the Investment Manager using\nportfolio risk assessment tools for portfolio construction.\n\n \nDerivative instruments exposure sensitivity analysis\nThe Company invests in derivative instruments to gain or reduce exposure to\nthe equity market. An increase of 10% in the share prices of the investments\nunderlying the derivative instruments at the reporting date would have\nincreased the net profit after taxation for the year and increased the net\nassets of the Company by $17,254,000 (2025: increased the net profit after\ntaxation for the year and increased the net assets of the Company by\n$10,074,000). A decrease of 10% in share prices of the investments underlying\nthe derivative instruments would have had an equal but opposite effect.\n\n \nOffsetting\nTo mitigate counterparty risk for OTC derivative transactions, the ISDA legal\ndocumentation is in the form of a master agreement between the Company and the\nbrokers. This allows enforceable netting arrangements in the event of a\ndefault or termination event. Derivative instrument assets and liabilities\nthat are subject to netting arrangements have not been offset in preparing the\nStatement of Financial Position.\n\n \n\nThe Company’s derivative instrument financial assets and liabilities\nrecognised in the Statement of Financial Position and amounts that could be\nsubject to netting in the event of a default or termination are shown below:\n\n Related amounts not set 2026 \n off on SoFP 1 \n Financial assets Gross amount $’000 Gross amount of recognised financial liabilities set off on the SoFP 1 $’000 Net amount of financial assets presented on the SoFP 1 $’000 Financial instruments $’000 Margin account received as collateral $’000 Net amount $’000 \n CFDs 30,873 – 30,873 (17,855) (9,650) 3,368 \n Options 5,054 – 5,054 (2,556) – 2,498 \n Futures contracts 5,034 – 5,034 – – 5,034 \n Forward currency contracts 17,653 (17,465) 188 – – 188 \n 58,614 (17,465) 41,149 (20,411) (9,650) 11,088 \n\n1. Statement of Financial Position\n\n Related amounts not set 2026 \n off on SoFP 1 \n Financial liabilities Gross amount $’000 Gross amount of recognised financial assets set off on the SoFP 1 $’000 Net amount of financial liabilities presented on the SoFP 1 $’000 Financial instruments $’000 Margin account pledged as collateral $’000 Net amount $’000 \n CFDs (19,149) – (19,149) 17,855 – (1,294) \n Options (2,993) – (2,993) 2,556 – (437) \n Forward currency contracts (17,465) 17,465 – – – – \n (39,607) 17,465 (22,142) 20,411 – (1,731) \n\n \n\n Related amounts not set 2025 \n off on SoFP 1 \n Financial assets Gross amount $’000 Gross amount of recognised financial liabilities set off on the SoFP 1 $’000 Net amount of financial assets presented on the SoFP 1 $’000 Financial instruments $’000 Margin account received as collateral $’000 Net amount $’000 \n CFDs 10,649 – 10,649 (8,072) (810) 1,767 \n Options 3,944 – 3,944 (1,900) – 2,044 \n Futures contracts 342 – 342 (342) – – \n Forward currency contracts 15,188 (15,117) 71 – – 71 \n 30,123 (15,117) 15,006 (10,314) (810) 3,882 \n\n \n\n Related amounts not set 2025 \n off on SoFP 1 \n Financial liabilities Gross amount $’000 Gross amount of recognised financial assets set off on the SoFP 1 $’000 Net amount of financial liabilities presented on the SoFP 1 $’000 Financial instruments $’000 Margin account pledged as collateral $’000 Net amount $’000 \n CFDs (9,215) – (9,215) 8,072 640 (503) \n Options (2,432) – (2,432) 1,900 – (532) \n Futures contracts (4,137) – (4,137) 342 3,795 – \n Forward currency contracts (15,117) 15,117 – – – – \n (30,901) 15,117 (15,784) 10,314 4,435 (1,035) \n\n1. Statement of Financial Position\n  Fair Value Hierarchy\nThe Company is required to disclose the fair value hierarchy that classifies\nits financial instruments measured at fair value at one of three levels,\naccording to the relative reliability of the inputs used to estimate the fair\nvalues.\n\n \n\n Classification Input \n Level 1 Valued using quoted prices in active markets for identical assets \n 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 \n Level 3 Valued by reference to valuation techniques using inputs that are not based on observable market data \n\n \n\nCategorisation within the hierarchy has been determined on the basis of the\nlowest level input that is significant to the fair value measurement of the\nrelevant asset. The valuation techniques used by the Company are explained in\nNote 2(b). The table below sets out the Company’s fair value hierarchy.\n\n \n\n Financial assets at fair value through profit or loss Level 1 $’000 Level 2 $’000 Level 3 $’000 2026 Total $’000 \n Investments in equity securities 759,695 – – 759,695 \n Investee funds – – 7,750 7,750 \n Derivative instrument assets – CFDs – 30,873 – 30,873 \n Derivative instrument assets – forward currency contracts – 188 – 188 \n Derivative instrument assets – futures contracts 5,034 – – 5,034 \n Derivative instrument assets – options 5,021 33 – 5,054 \n 769,750 31,094 7,750 808,594 \n Financial liabilities at fair value through profit or loss \n Derivative instrument liabilities – CFDs – 18,774 375 19,149 \n Derivative instrument liabilities – options 2,523 470 – 2,993 \n 2,523 19,244 375 22,142 \n\nFinancial instruments classified under Level 2 are valued by reference to\ninputs other than quoted prices included in level 1 that are observable (i.e.\ndeveloped using market data) for the asset or liability, either directly or\nindirectly. The Level 2 instruments include forward currency contracts, over\nthe counter option contracts and contracts for difference.\n\n \n\n Financial assets at fair value through profit or loss Level 1 $’000 Level 2 $’000 Level 3 $’000 2025 Total $’000 \n Investments in equity securities 708,476 – – 708,476 \n Investee funds – – 4,385 4,385 \n Derivative instrument assets – CFDs – 10,649 – 10,649 \n Derivative instrument assets – forward currency contracts – 71 – 71 \n Derivative instrument assets – futures contracts 342 – – 342 \n Derivative instrument assets – options 3,846 98 – 3,944 \n 712,664 10,818 4,385 727,867 \n Financial liabilities at fair value through profit or loss \n Derivative instrument liabilities – CFDs – 9,215 – 9,215 \n Derivative instrument liabilities – futures contracts 4,137 – – 4,137 \n Derivative instrument liabilities – options 1,802 630 – 2,432 \n 5,939 9,845 – 15,784 \n\n \n\n Valuation basis for Level 3 Investment 30 June 2026 $’000 30 June 2025 $’000 \n Net asset value 7,750 4,385 \n Intrinsic valuation approach for CFDs on restricted assets (375) – \n 7,375 4,385 \n\nAs the key input into the valuation of Level 3 investments is official\nvaluation statements from the investee funds and the adjusted most recently\navailable published price, we do not consider it appropriate to put forward a\nsensitivity analysis on the basis that insufficient value is likely to be\nderived by the end users.\n\n \n\nThe following table summarises the change in value associated with Level 3\nfinancial instruments carried at fair value during the year:\n\n 30 June 2026 30 June 2025 \n Level 3 Level 3 \n Movements in level 3 investments during the year Non Derivatives $’000 Derivatives $’000 Non Derivatives $’000 Derivatives $’000 \n Opening balance 4,385 – 5,363 – \n Sales (740) – (1,138) – \n Transfers to Level 1 – – (1,466) – \n Transfers from Level 2 – (375) – – \n Realised gains/(losses) 694 – (7,589) – \n Net change in unrealised gains 3,411 – 9,215 – \n Closing balance 7,750 (375) 4,385 – \n\n \n\nThe Company’s holdings in non derivative Russian securities have been fair\nvalued at $nil as at 30 June 2026 (2025 : $nil) as a result of trading being\nsuspended on international stock exchanges. These non derivative Russian\nsecurities have an acquisition cost of $90,933,000 as at 30 June 2026 (2025:\n$90,933,000).\n\n \n\nThe Company’s policy is to recognise transfers in and transfers out of the\nfair value hierarchy level at the end of each accounting period. Financial\nassets or liabilities measured at fair value are reclassified between levels\nof the fair value hierarchy when changes in the valuation methodology justify\na different classification.\n\n \nRussian securities\nThe Company continues to hold investments in Russian securities, which are\nsubject to market, liquidity and valuation uncertainties arising from\nrestrictions affecting the Russian market.\n\nThe Company’s exposure to Russian securities as at 30 June 2026 has remained\nunchanged from 30 June 2025. Details of the holdings are set out in the table\nbelow.\n\n \n30 June 2026\n Security name Holdings Cost $’000 Fair value immediately prior to restrictions 28-Feb-22 $’000 Fair Value $’000 \n Gazprom 10,398,354 51,236 9,899 – \n Sberbank of Russia – preference shares 1,964,397 8,373 1,033 – \n Sberbank of Russia – common stock 589,205 1,457 308 – \n PhosAgro – common stock 266,417 9,530 16,312 – \n PhosAgro – GDR 5,150 9,530 16 – \n Novolipetsk Steel 1,990,470 5,704 7,663 – \n United Company Rusal 4,519,809 5,103 1,126 – \n 90,933 36,357 – \n  Capital Risk Management\nThe capital of the Company is represented by the equity attributable to\nholders of Participating Preference Shares. The Company’s objective when\nmanaging capital is to safeguard the Company’s ability to continue as a\ngoing concern in order to provide returns for shareholders and to maintain a\nstrong capital base to support the achievement of its investment objective.\n\n \n\nThe Board monitors and reviews the Company’s capital structure on an ongoing\nbasis and seeks to maintain an appropriate balance between the interest of\nshareholders and the ability to achieve the Company’s investment strategy.\n\n \n\nThe Company does not have any externally imposed capital requirements. The\nfinancial resources of the Company comprise its share capital, reserves and\ngearing, which are disclosed on the Statement of Financial Position. The\nCompany is managed in accordance with its investment policy and in pursuit of\nits investment objective, both of which are detailed in the Strategic Report.\nThe principal risks and their management are disclosed in the Strategic\nReport.\n\n \n\nThe Company’s gearing at the year end is set out below:\n\n 30 June 2026 \n Gross gearing Net gearing \n Exposure $’000 % 1 Exposure $’000 % 1 \n Investments 767,445 88.8 767,445 88.8 \n Long CFDs 572,585 66.3 572,585 66.3 \n Long futures contract 6,954 0.8 6,954 0.8 \n Long call options 19,404 2.2 19,404 2.2 \n Long put options 12,662 1.5 12,662 1.5 \n Total long exposures before hedges 1,379,050 159.6 1,379,050 159.6 \n Less: Hedged futures contract exposures (205,692) (23.8) (205,692) (23.8) \n Less: Hedged option exposures (10,413) (1.2) (10,413) (1.2) \n Total long exposures after the netting of hedges 2 1,162,945 134.6 1,162,945 134.6 \n Short CFDs 199,865 23.1 (199,865) (23.1) \n Short futures contract 23,282 2.7 (23,282) (2.7) \n Gross Asset Exposure/net exposure 1,386,092 160.4 939,798 108.8 \n Net Assets 864,003 864,003 \n Gearing 3 60.4% 8.8% \n\n1. Exposure to the market expressed as a percentage of Net Assets per the\nStatement of Financial Position.\n\n2. Hedges as defined within the Glossary in the Annua Report.\n\n3. Gearing is the amount by which Gross Asset Exposure/net exposure exceeds\nNet Assets expressed as a percentage of Net Assets.\n\n \n\n 30 June 2025 \n Gross gearing Net gearing \n Exposure $’000 % 1 Exposure $’000 % 1 \n Investments 712,861 92.4 712,861 92.4 \n Long CFDs 433,157 56.1 433,157 56.1 \n Long futures contract 16,965 2.2 16,965 2.2 \n Long put options 21,474 2.8 21,474 2.8 \n Long call options 12,313 1.6 12,313 1.6 \n Total long exposures before hedges 1,196,770 155.1 1,196,770 155.1 \n Less: Hedged futures contract exposures (160,910) (20.9) (160,910) (20.9) \n Less: Hedged option exposures (10,949) (1.4) (10,949) (1.4) \n Total long exposures after the netting of hedges 2 1,024,911 132.8 1,024,911 132.8 \n Short CFDs 180,705 23.4 (180,705) (23.4) \n Short futures contract 28,958 3.8 (28,958) (3.8) \n Short put options 680 0.1 (680) (0.1) \n Gross Asset Exposure/net exposure 1,235,254 160.1 814,568 105.5 \n Net Assets 771,628 771,628 \n Gearing 3 60.1% 5.5% \n\n1. Exposure to the market expressed as a percentage of Net Assets per the\nStatement of Financial Position.\n\n2. Hedges as defined within the Glossary in the Annual Report.\n\n3.  Gearing is the amount by which Gross Asset Exposure/net exposure exceeds\nNet Assets expressed as a percentage of Net Assets.\n  19. Transactions with the Managers and Related Parties\nFIL Investment Services (UK) Limited is the Company’s Alternative Investment\nFund Manager and has delegated portfolio management to FIL Investments\nInternational (“FII”). Both companies are Fidelity group companies.\n\n \n\nDetails of the current fee arrangements are given in Note 4 and Note 5. During\nthe year, the Company had the following transactions payable to FII:\n\n 30 June 2026 $’000 30 June 2025 $’000 \n Investment management fees 4,668 4,314 \n Marketing services 468 334 \n\nAt the year end, the following balances were accrued and outstanding to FII.\nThese balances are included within the other payables figure in Note 13.\n\n 30 June 2026 $’000 30 June 2025 $’000 \n Investment management fees 444 365 \n Marketing services 48 43 \n\nAs at 30 June 2026, the Board consisted of five non-executive Directors all of\nwhom are considered to be independent by the Board. None of the Directors has\na service contract with the Company.\n\n \n\nThe Directors’ beneficial interests in the share capital of the Company and\nthe annual fee structure from 1 July 2026 are shown in the Directors’\nReport.\n\n \n\nThe Directors received for the financial year fees totalling $307,241, (2025:\n$263,694). The breakdown of the fees and related party interests is shown in\nthe Directors’ Remuneration Report. Directors’ expenses for the year, as\nstated in Note 5, include travelling, hotel and other expenses which the\nDirectors are entitled to when properly incurred by them in travelling to,\nattending and returning from meetings and while on other business of the\nCompany.\n\n \n20. Ultimate Controlling Party\nIn the opinion of the Directors on the basis of the shareholdings advised to\nthem, the Company has no immediate or ultimate controlling party.\n\n \n21. Segment Information\nThe Directors have considered the basis on which information is presented to\nthem and have concluded that the Company is engaged in a single operating\nsegment, being the management of a diversified portfolio of investments in\nemerging markets.\n\n \n\nAll of the Company’s activities are interrelated, and each activity is\ndependent on the others. Accordingly, all significant operating decisions are\nbased on analysis of the Company operating in one segment.\n\n \n\nThe financial positions and results from this segment are equivalent to those\npresented in the financial statements of the Company as internal reports are\nprepared on a basis consistent with the measurement and recognition principles\nof IFRS.\n\n \n\nA breakdown of the Company’s financial assets at fair value through profit\nand loss is shown in the Country exposure of the Company’s portfolio above.\n\n \n\nThe Company is domiciled in Guernsey. All investment income is derived from\ninvestments in entities located outside Guernsey.\n\n \n22. Subsequent events\nNo significant events have occurred since the end of the reporting date which\nwould impact on the financial position of the Company disclosed in the\nStatement of Financial Position as at 30 June 2026 or on the financial\nperformance and cash flows of the Company for the year ended on that date.\n\n \nAlternative Performance Measures\nThe Company uses the following as Alternative Performance Measures which are\nall defined in the Glossary to the Annual Report.\n\n \nActive Share\nActive Share is a measure of the percentage which stock holdings in the\nCompany differ from the constituents of the benchmark, the MSCI Emerging\nMarkets Index. Active share is calculated by taking the sum of the absolute\ndifference between the weights of the holdings in the Company and those in the\nMSCI Emerging Markets Index and dividing the result by two. See The Year at a\nGlance inside the front cover of this report for further details.\n\n \nDiscount/Premium\nThe discount/premium is the difference between the NAV per Participating\nPreference Share of the Company and the share price and is expressed as a\npercentage of the NAV per Participating Preference Share. Details of the\nCompany’s discount are on the Financial Highlights.\n\n \nGearing\nSee Note 18 for details of the Company’s gearing.\n\n \nNet Asset Value (“NAV”) per Participating Preference Share\nSee the Statement of Financial Position and Note 16 for further details.\n\n \nOngoing charges ratio\nThe ongoing charges ratio has been calculated in accordance with guidance\nissued by the AIC as the total of management fees and other expenses expressed\nas a percentage of the average net assets throughout the year.\n\n 30 June 2026 30 June 2025 \n Investment management fees ($’000) 4,668 4,314 \n Other expenses ($’000) 2,206 1,644 \n Ongoing charges ($’000) 6,874 5,958 \n Average net assets ($’000) 786,510 715,976 \n Ongoing charges ratio 0.87% 0.83% \n  Total Return Performance\nNAV per share total return includes reinvestment of the dividend in the NAV of\nthe Company on the ex-dividend date. Share price total return includes the\nreinvestment of the net dividend in the month that the share price goes\nex-dividend.\n\nThe tables below provide information relating to the NAV per share and share\nprices of the Company, the impact of the dividend reinvestments and the total\nreturns for the years ended 30 June 2026 and 30 June 2025.\n\n \n\n 2026 Net asset value per share Share price \n 30 June 2025 875.15p 783.00p \n 30 June 2026 1,653.34p 1,530.00p \n Change in the year +88.9% +95.4% \n Impact of dividend reinvestment +3.4% +3.9% \n Total return for the year +92.3% +99.3% \n\n \n\n 2025 Net asset value per share Share price \n 30 June 2024 798.47p 703.00p \n 30 June 2025 875.15p 783.00p \n Change in the year +9.6% +11.4% \n Impact of dividend reinvestment +2.0% +2.3% \n Total return for the year +11.8% +14.0% \n\n \n\nThe Final Results Announcement is not the Company's statutory accounts. The\nabove results for the year ended 30 June 2026 are an abridged version of the\nCompany's full Annual Report and Financial Statements, which have been\napproved and audited with an unqualified report. The 2026 Financial Statements\nwill be filed with the Guernsey Financial Services Commission in due course.\n\nA copy of the above results announcement and the Annual Report will be\navailable on the Company's website at www.fidelity.co.uk/emergingmarkets\nwithin two working days.\n\nA copy of the Annual Report will shortly be submitted to the National Storage\nMechanism and will be available for inspection at:\nwww.morningstar.co.uk/uk/NSM\n\nThe Annual Report will be posted to shareholders later this month and\nadditional copies will be available from the registered office of the Company\nand on the Company's website: www.fidelity.co.uk/emergingmarkets where up to\ndate information on the Company, including daily NAV and share prices,\nfactsheets and other information can also be found.\n\nNeither the contents of the Company's website nor the contents of any website\naccessible from hyperlinks on the Company's website (or any other website) is\nincorporated into, or forms part of, this announcement.\n\nENDS\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-10-06T06:00:28.566688793Z","server_sent_at_ms":1791266428566},"received_at":"2026-10-06T06:00:29.099Z","source_url":null},"analysis":{"id":"149771","press_release_id":"161232","analysis_json":{"industry":{"label":"Capital Markets","sector":"Financials"},"redFlags":["Russian securities held at nil value ($90.9m cost basis) — recovery uncertain and dependent on sanctions relief","High gross gearing of 60.4% and 160.4% gross asset exposure amplifies downside in a market reversal","Heavy concentration in Taiwan (44.4%) and Korea (34.5%) with 71.3% IT sector exposure","No fixed dividend policy — future dividends not guaranteed","Continuation vote at 1 Dec 2026 AGM could in principle wind up the company"],"eventType":"earnings","narrative":"Fidelity Emerging Markets Limited delivered a NAV total return of +92.3% and share price total return of +99.3% for the year to 30 June 2026, roughly double the MSCI Emerging Markets benchmark's +48.2%.\n\nThe five-year outperformance means the 25% conditional tender offer will NOT proceed, and the Board will renew the mechanism on the same terms for 2026-2031. A continuation vote takes place at the 1 December 2026 AGM, with the Board unanimously recommending continuation.\n\nThe Board raised the final dividend to $0.33 per share (from $0.26), repurchased 8,527,914 shares (13.2% of the start-of-year count) plus the ~25% Strathclyde Pension Fund block at a 14% discount to NAV, and the discount to NAV narrowed to 7.4%.\n\nKey risks flagged: Russian securities remain valued at zero (cost basis $90.9m) with potential NAV uplift on any sanctions resolution, and heavy gross gearing of 60.4% with 160.4% gross asset exposure concentrated in Taiwan (44.4%) and Korea (34.5%).","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Emerging markets trust doubles shareholders' money in FY26, beats benchmark by 44pp, clears its five-year survival hurdle — tender offer scrapped, dividend raised 27%."},"keyFigures":{"eps":"$8.55 total earnings per Participating Preference Share ($0.32 revenue + $8.23 capital)","revenue":45176000,"guidance":"Final dividend of $0.33 per share (up from $0.26); 25% conditional tender offer will NOT proceed as five-year outperformance cleared the hurdle; continuation vote at 1 Dec 2026 AGM","customDimensions":{"net_assets":"$864.0m","net_gearing":"8.8%","gross_gearing":"60.4%","dividend_yield":"1.6%","discount_to_nav":"7.4% (from 10.5%)","benchmark_return":"+48.2%","nav_total_return":"+92.3%","nav_per_share_gbp":"£16.53","nav_per_share_usd":21.94,"dividend_per_share":"$0.33","shares_bought_back":8527914,"gross_asset_exposure":"$1,386.1m","ongoing_charges_ratio":"0.87%","share_price_total_return":"+99.3%","annualised_nav_return_since_2021":"14.8%"}},"quotedText":"performance has been so strong that your Company ranked in the top 10 of all investment trusts (over 200 of them) for NAV and share price total return performance over both one and three years to 30 June 2026, ahead of all peers in the Association of Investment Companies' (AIC) Global Emerging Markets sector.","namedEntities":{"people":[{"name":"Heather Manners","role":"Chairman"},{"name":"Nick Price","role":"Portfolio Manager"},{"name":"Chris Tennant","role":"Portfolio Manager"},{"name":"George Bayer","role":"Company Secretary"},{"name":"Katherine Tsang","role":"outgoing non-executive Director"},{"name":"Dr Shefaly Yogendra","role":"incoming non-executive Director"}],"products":["MSCI Emerging Markets Total Return Index (benchmark)","TSMC (14.9% of net assets)","Samsung Electronics (10.6%)","SK Hynix (7.5%)","SK Square (4.9%)"],"companies":[{"name":"Fidelity Emerging Markets Limited","ticker":"FEML","relationship":"filer"},{"name":"Fidelity International / FIL Investments International","relationship":"investment manager"},{"name":"Strathclyde Pension Fund","relationship":"former shareholder (25.7% block repurchased at 14% discount to NAV)"},{"name":"Computershare","relationship":"registrar"},{"name":"JP Morgan Chase Bank","relationship":"custodian"}],"dollarAmounts":[{"amount":"$864.0m","context":"Equity Shareholders' Funds / net assets at 30 June 2026"},{"amount":"$1,386.1m","context":"Gross Asset Exposure"},{"amount":"$0.33","context":"final dividend per Participating Preference Share"},{"amount":"$327,090,000","context":"total cost of share repurchases charged to capital reserve"},{"amount":"$90,933,000","context":"acquisition cost of Russian securities held at nil value"},{"amount":"£882m","context":"net UK outflows from global emerging markets funds July 2025-June 2026"}]},"materialImpact":{"score":3,"reasoning":"Full-year annual results with NAV total return of +92.3% and share price total return of +99.3% versus the benchmark's +48.2%, plus a raised dividend ($0.33 vs $0.26) and heavy buybacks. Strong but a scheduled annual report, not a market-moving surprise event."},"tickerRelevance":{"others":[],"primary":"FEML"},"globalImportance":28,"audienceRelevance":18,"eventTypeSecondary":["dividend","buyback","board_change"],"importanceComponents":{"tickerTier":"small-cap FTSE 250 investment trust","eventGravity":"annual results with strong outperformance and tender-offer resolution","householdBrandBoost":"Fidelity brand manager","retailFavoriteBoost":"retail shareholder base grew to 18.2% from 4.1%"}},"event_type":"earnings","event_type_secondary":["dividend","buyback","board_change"],"sentiment":"bullish","material_impact_score":3,"narrative":"Fidelity Emerging Markets Limited delivered a NAV total return of +92.3% and share price total return of +99.3% for the year to 30 June 2026, roughly double the MSCI Emerging Markets benchmark's +48.2%.\n\nThe five-year outperformance means the 25% conditional tender offer will NOT proceed, and the Board will renew the mechanism on the same terms for 2026-2031. A continuation vote takes place at the 1 December 2026 AGM, with the Board unanimously recommending continuation.\n\nThe Board raised the final dividend to $0.33 per share (from $0.26), repurchased 8,527,914 shares (13.2% of the start-of-year count) plus the ~25% Strathclyde Pension Fund block at a 14% discount to NAV, and the discount to NAV narrowed to 7.4%.\n\nKey risks flagged: Russian securities remain valued at zero (cost basis $90.9m) with potential NAV uplift on any sanctions resolution, and heavy gross gearing of 60.4% with 160.4% gross asset exposure concentrated in Taiwan (44.4%) and Korea (34.5%).","key_figures":{"eps":"$8.55 total earnings per Participating Preference Share ($0.32 revenue + $8.23 capital)","revenue":45176000,"guidance":"Final dividend of $0.33 per share (up from $0.26); 25% conditional tender offer will NOT proceed as five-year outperformance cleared the hurdle; continuation vote at 1 Dec 2026 AGM","customDimensions":{"net_assets":"$864.0m","net_gearing":"8.8%","gross_gearing":"60.4%","dividend_yield":"1.6%","discount_to_nav":"7.4% (from 10.5%)","benchmark_return":"+48.2%","nav_total_return":"+92.3%","nav_per_share_gbp":"£16.53","nav_per_share_usd":21.94,"dividend_per_share":"$0.33","shares_bought_back":8527914,"gross_asset_exposure":"$1,386.1m","ongoing_charges_ratio":"0.87%","share_price_total_return":"+99.3%","annualised_nav_return_since_2021":"14.8%"}},"named_entities":{"people":[{"name":"Heather Manners","role":"Chairman"},{"name":"Nick Price","role":"Portfolio Manager"},{"name":"Chris Tennant","role":"Portfolio Manager"},{"name":"George Bayer","role":"Company Secretary"},{"name":"Katherine Tsang","role":"outgoing non-executive Director"},{"name":"Dr Shefaly Yogendra","role":"incoming non-executive Director"}],"products":["MSCI Emerging Markets Total Return Index (benchmark)","TSMC (14.9% of net assets)","Samsung Electronics (10.6%)","SK Hynix (7.5%)","SK Square (4.9%)"],"companies":[{"name":"Fidelity Emerging Markets Limited","ticker":"FEML","relationship":"filer"},{"name":"Fidelity International / FIL Investments International","relationship":"investment manager"},{"name":"Strathclyde Pension Fund","relationship":"former shareholder (25.7% block repurchased at 14% discount to NAV)"},{"name":"Computershare","relationship":"registrar"},{"name":"JP Morgan Chase Bank","relationship":"custodian"}],"dollarAmounts":[{"amount":"$864.0m","context":"Equity Shareholders' Funds / net assets at 30 June 2026"},{"amount":"$1,386.1m","context":"Gross Asset Exposure"},{"amount":"$0.33","context":"final dividend per Participating Preference Share"},{"amount":"$327,090,000","context":"total cost of share repurchases charged to capital reserve"},{"amount":"$90,933,000","context":"acquisition cost of Russian securities held at nil value"},{"amount":"£882m","context":"net UK outflows from global emerging markets funds July 2025-June 2026"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-06T06:00:41.238Z","global_importance":28,"audience_relevance":18,"importance_components":{"tickerTier":"small-cap FTSE 250 investment trust","eventGravity":"annual results with strong outperformance and tender-offer resolution","householdBrandBoost":"Fidelity brand manager","retailFavoriteBoost":"retail shareholder base grew to 18.2% from 4.1%"}},"durationMs":12037,"modelName":"glm-5.3-flashx"}}