Fidelity Emerging Markets Limited – Half-year Financial Report

Fidelity Emerging Markets Limited

HALF YEAR REPORT for the six months ended 31 December 2025

· During the six-month period ended 31 December 2025, Fidelity Emerging
Markets Limited outperformed the benchmark
· The share price total return was +38.9% while the Net Asset Value (NAV)
return was +35.5%,
· Over the same timeframe, the benchmark index, the MSCI Emerging Markets
Index, returned +18.1%
· The company’s extensive `toolkit’ contributed positively to performance,
with long and short positions adding to performance alongside smaller-cap
holdings
· Long positions in materials, commodities, and gold miners also added notable
value

Financial Highlights

31 December 30 June

2025 2025
Assets
USD
Gross Asset Exposure1 $1,086.0m $1,235.3m
Equity Shareholders’ Funds $692.5m $771.6m
NAV per Participating Preference $15.55 $11.99
Share2
Gross Gearing2,3 56.8% 60.1%
Net Gearing2,4 6.0% 5.5%
GBP
Gross Asset Exposure1,5 £807.4m £901.4m
Equity Shareholders’ Funds5 £514.9m £563.1m
NAV per Participating Preference £11.56 £8.75
Share2,5
Participating Preference Share
Price and Discount Data
Participating Preference Share £10.66 £7.83
Price at the period end
Discount to NAV per 7.79% 10.51%
Participating Preference Share
at period end2
Number of Participating 44,522,961 64,342,245
Preference Shares in issue
Earning for the six months ended 2025 2024
31 December
Revenue Earnings per $0.12 $0.17
Participating Preference Share6
Capital Earnings/(Loss) per $2.79 ($0.37)
Participating Preference Share6
Total Earnings/(Loss) per $2.91 ($0.20)
Participating Preference Share6
Ongoing charges ratio2 0.83% 0.84%

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

2Alternative Performance Measures. See Glossary of Terms.

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

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

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

6Calculated based on weighted average number of Participating Preference Shares
in issue during the period.

For further information please contact:

George Bayer

Company Secretary, FIL Investments International

[email protected] or +44 20 7961 4240

Chairman’s Statement

In a year that began with the inauguration of the new US administration and
continued with the imposition of various trade tariffs – particularly on Asian
and Latin American countries – it is perhaps surprising that emerging markets
significantly outperformed their developed counterparts in 2025. Indeed, the
24.4% 12-month sterling total return of the MSCI Emerging Markets Total Return
Index (`the Index’) was almost double the 12.7% total return from the US
-dominated MSCI World Index. This is despite the S&P 500 Index of leading US
stocks reaching no fewer than 38 new all-time highs during the year, as the
rollout of artificial intelligence technologies continued to drive returns for
some of its largest constituents.

In their Portfolio Managers’ Report on the following pages, Nick Price and Chris
Tennant outline some of the reasons for this remarkable shift in market
leadership. These include falling US interest rates and a weaker dollar (both of
which are good for exporters to the US and countries with dollar-denominated
debt), the commanding position of Asia in the high-tech supply chain, and a
strong environment for commodities – particularly precious metals – whose
production is largely based in emerging markets. For China, a large-scale
stimulus package helped its equity market to post strong returns for the year –
well in advance of developed markets, albeit a little behind the broader EM
index.

Against such a positive backdrop, it is very pleasing to report that the Company
outperformed strongly between 1 July and 31 December 2025. The net asset value
(NAV) total return of 34.5% in sterling was almost double the 18.1% return of
the Company’s benchmark index, while the share price total return was even
better at 38.9%, reflecting a narrowing in the discount to NAV during the
period. For the calendar year as a whole, a share price total return of 56.5%
placed your Company among the top 10 best-performing investment trusts of the
year – a list dominated by precious metals and alternative asset strategies, in
which we were the only mainstream equity fund, thereby beating all other
emerging (and developed) markets peers.

While all the supportive market factors outlined above fed into this very
favourable period of performance for the Company, to beat a rising market so
emphatically requires a high degree of differentiation. Your Portfolio Managers’
extended investment toolkit helped in this regard, with the short book having a
positive impact even in a rising market.

Short positions accounted for more than 5% of the outperformance in the period
under review. Certain themes also proved key in their contribution, including a
large overweight in materials, concentrated in precious metals (a store of value
in times of higher inflation) and copper, which is a vital component in
electrification. Materials made up nearly 29% of the gross portfolio at 31
December versus just over 7% of the Index, so it is clear that holders of an
index fund would not have benefited from the performance of this theme to
anything like the same degree. In relation to other themes, particularly in
industrials and technology, stock selection also contributed substantially.

Your Board remains committed to the advantages of active investing, especially
in eras of change in market leadership, and this is an excellent example of how
active investment management can enhance returns and how your Company’s go
-anywhere process can deliver.

Furthermore, we remind investors that the Company’s Russian holdings remain
valued at zero due to Russia’s ongoing invasion of Ukraine. While any resolution
of the conflict and subsequent reinstatement of international trading in Russian
stocks could therefore result in a restoration of this hidden value, we will
continue to reassess our position as the situation evolves, and greater clarity
emerges.

Outlook

Since the end of the reporting period, the macroeconomic and geopolitical
landscape has shifted dramatically and become more volatile. This means that the
outlook for emerging markets has become more uncertain in the short-term. Amid
the volatility, opportunity emerges to acquire good quality businesses at
particularly attractive valuations. The Board is confident that the team at
Fidelity can make best use of the extended investment toolkit and, have the
necessary experience to navigate these turbulent waters and we believe that
despite undeniable short-term uncertainty the long-term case for investing in
emerging markets remains strong.

Board composition

There have been no changes to the Board of Directors in the period under review.
However, Katherine Tsang will have completed nine years’ service (the
recommended maximum under corporate governance rules) in July 2026, and as such
she intends to stand down at the 2026 Annual General Meeting (AGM). A search is
currently under way to identify a suitably qualified individual to succeed her.

Strathclyde share repurchase

In November 2025, the Company completed the repurchase of a large shareholding
(16.4 million shares) from the Strathclyde Pension Fund, equivalent to roughly
25% of the shares in issue. These shares were bought back at an agreed 14%
discount to NAV and subsequently cancelled. Given the share price discount to
NAV at the time of the repurchase was less than 10%, the transaction led to an
immediate uplift of more than 4.5% in the NAV per share for continuing
shareholders, underlining the Company’s commitment to a fair outcome for all its
investors.

Discount management

During the period under consideration, the Company’s discount to NAV narrowed
from 10.5% to 7.8%. While investment trust discounts in general also narrowed
during the period (from 14.0% to 12.5% on average), your Board believes the
Company’s below-average discount reflects a number of factors. These include the
strong performance of the FEML portfolio, our differentiated investment process
and the clearly growing appetite for emerging markets, Fidelity’s strong brand
and clear marketing strategy and Nick and Chris’s growing presence and strong
messaging in the media and at many investor events, as well as their regular
insightful contributions online via our website.

However, we also recognise the importance to investors of taking direct action
to limit the discount, and as such we have continued to buy back shares in the
market when the discount is sufficiently wide that taking such action would have
a positive impact on NAV, repurchasing 3,378,107 shares (excluding the
Strathclyde repurchase), or c 5.25% of the total at the start of the Half Year,
between 1 July and 31 December 2025. Since then, a further 1,866,065 shares have
been bought back, and at the latest practicable date (10 March 2026), the
discount to NAV stood at 7.0%.

I would also remind readers that the Company has committed to undertake a tender
offer for up to 25% of its then shares in issue (excluding any shares held in
treasury) should its NAV total return fail to exceed the benchmark over the five
years ending on 30 September 2026. As at 31 December 2025 (nine months short of
the full five-year period), the Company’s NAV total return was 8.32% ahead of
that of the benchmark.

2025 AGM and final dividend

The Company held its Annual General Meeting (AGM) on 1 December 2025. The other
directors and I thank you for your approval of all resolutions presented at the
meeting. Once again we particularly appreciate the level of shareholder support
and engagement evidenced by more than 36 million shares – a turnout of more than
75% following the reduction in the share base resulting from the Strathclyde
repurchase – being voted. Shareholder enfranchisement remains a key advantage of
the investment trust structure, and it is gratifying to see such a high level of
engagement. At the EGM in October to consider the Strathclyde repurchase,
turnout was similarly high at 76.3%, with more than 99% of votes cast in favour
of the transaction.

At the AGM, shareholders approved the final dividend of $0.26 (19.80p) per
Participating Preference Share, a 30.0% increase on the $0.20 (15.74p) paid in
respect of FY24. The dividend was paid on 9 December 2025. Shareholders should
note that the Company does not have a fixed dividend policy because income is an
output rather than an aim of the investment process. Therefore, while the payout
was substantially increased in respect of FY25 as a result of higher dividend
receipts, there should be no expectation that future dividends will be
maintained at or above this level.

The Board will review the final dividend payment for FY26 later in the year
based on dividend receipts from the companies held in the portfolio.

As I write this towards the end of the third quarter of our financial year,
while the rapidly changing geopolitical landscape may lead to volatility in the
near term, I remain optimistic about the longer-term outlook for emerging
markets. Strong underlying fundamentals, attractive valuations and supportive
structural growth drivers continue to underpin the investment case. In this
context, I believe the Company remains well placed to benefit from the
opportunities that these markets can offer over time.

Portfolio Managers’ Half Year Review

Macroeconomic Review

Emerging markets delivered exceptional performance in 2025 and continued to
rally over the last six months of the year, outperforming developed markets. The
backdrop for EM remained supportive, with several interest-rate cuts from the
Fed boosting sentiment, alongside the presence of a much more balanced US dollar
than we have seen in recent years. Performance was supported by strong returns
in several Asian markets, particularly Taiwan and Korea, which benefited from AI
-related demand and emerging signs of governance reforms in Korea, whilst strong
commodity prices provided a boost to commodity-exporting economies like South
Africa and parts of Latin America. The renewed focus on anti-involution in China
supported investor sentiment somewhat, although the market marginally
underperformed over the period as weak activity data emerged towards the end of
the year.

Please note the period for this investment review is 1 July 2025 to 31 December
2025. As a result, the performance review and positioning update relate to this
period and therefore precede the events taking place in Middle East in early
March 2026. We have, however, incorporated a forward-looking perspective in the
outlook section to reflect more recent developments, but note that as this is a
rapidly developing situation, the team’s views are subject to change as events
evolve.

Portfolio performance: Six months to 31December 2025

It was a strong period of performance for the investment company, which
delivered net asset value (NAV) total returns of 34.5% vs. the index which
returned 18.1% (GBP, net of fees). It was pleasing to see the portfolio’s
enhanced toolkit have a positive effect on performance, with contributions from
the long and short books, the latter notable given the market performed so well,
as well as from yield enhancement. In addition to robust investment performance,
there was an uplift to the NAV per share of approximately 4.5% following the
conditional share repurchase conducted in Q4.

The drivers of this outperformance were broad based, with the strongest
contribution coming from our materials exposure, where we have a considerable
overweight. Gold miners have benefitted from the continued shift in central bank
reserves away from US Treasuries, as well as strong retail demand for the
precious metal, both of which underpinned the rally in the commodity. Here, some
of our smaller-cap positions performed particularly well, with South Africa
-focused gold miner Pan African Resources, which also has a tailings
-reprocessing operation, the top performer following the ramp-up of its new mine
and as its growing market cap boosted liquidity, making it a more viable
alternative for gold exposure among institutional investors. West Africa-focused
gold miner Endeavour Mining also rallied on rising free cash flow.

Stock picking in industrials was also positive, with one of our newer additions
to the portfolio, Chinese power equipment maker Sieyuan Electric, contributing
off the back of a series of strong quarterly results, underpinned by margin
expansion and a rising market share. Korea’s SK Square, the holding company for
memory company SK Hynix, also performed well, supported by the strong supply
-demand outlook for memory, and went some way to offsetting the detraction from
the underweight positioning in Korea after investor optimism around the value-up
initiative drove a rally in the broader Korean market. Conversely, the short
position in an Asian cathode maker weighed on returns after it rose on optimism
around rising energy storage demand and a broader sector re-rating, despite no
material improvement in underlying fundamentals and a weak balance sheet.

The portfolio enjoyed some of the tailwinds of AI-driven demand over the period,
with stock picking in IT being another contributor to returns. Here, Taiwan’s
Elite Material, a maker of copper-clad laminate, which we added to at the nadir
of the post-Liberation Day tariff fallout, rose on continued strong demand
supported by hyperscaler investment in data centres. There were however some
notable detractors within the short book, including in an Asian memory chip
designer which rallied with other legacy memory names on rising DRAM prices,
despite having no exposure to this type of memory.

The exposure to financials was more challenging during the period with stock
picking and the overweight positioning detracting. Kazakhstan’s dominant e
-commerce and payments platform Kaspi was among the key detractors, weighed down
by the market’s high interest rates, as well as some concerns around smartphone
registering rules and the suspension of the dividend to fund the acquisition of
a Turkish business. We see the latter two issues as largely transitory, and the
inflation backdrop has started to improve, so we continue to have conviction in
the stock, especially given its cheap valuation and dominant position in the
local consumer finance and e-commerce segments. Broader weakness in the Indian
market also dragged on some of our Indian financial positions, including SME
lender Five Star Business Finance, which suffered from a regulatory push to
curtail non-bank lending, although the company is still growing quickly.
However, it was positive to see our underweight positioning in the Indian market
offset this somewhat.

Stock picking in consumer discretionary was another weaker area during the
period, driven in part by the overweight exposure to South African holding
company Naspers (which holds a large stake in China’s Tencent), which
underperformed as local investors rotated into precious metal stocks given
strength in this segment. Polish auto parts distributor Auto Partner also fell
after disappointing on margins, although some of this appears to be due to
cyclical effects such as local currency strength and input deflation, and it
appears that pricing conditions are likely to improve going forward.

The overall exposure to Indonesia, including stock picking and the overweight
positioning in the market, also detracted amid concerns around the political
backdrop and as investors re-allocated exposure to EM markets like Taiwan.
However, this indiscriminate de-rating has seen many high-quality Indonesia
businesses reach trough multiples, providing some excellent valuation
opportunities.

Portfolio positioning as of 31December 2025

The focus continues to be on holding long positions in well capitalised
businesses with under-levered balance sheets, whilst looking for short
opportunities among companies with a deteriorating fundamental outlook or with
broken balance sheets.

Over the second half of 2025 the materials exposure increased, in part due to
organic growth from strong performance, making it the portfolio’s most
significant overweight, with exposure predominantly concentrated in copper and
gold.

In copper, we are entering a decade of stronger growth, driven by EVs and
related infrastructure, grid investment to facilitate the energy transition, and
data centre demand, whilst a lack of greenfield discoveries and a reduction in
the quality of key mining assets will lead to weaker supply growth. As at year
end we held miners including Africa-focused Ivanhoe Mines, which operates one of
the last high-grade copper mines in the world and which we added to
opportunistically after the stock underperformed following a seismic incident
that impacted production at a flagship asset.

We also like gold miners, where the market seems to have entered a new paradigm
with the traditional inverse relationship with real yields weakening following
the confiscation of Russian reserves and the deterioration of fiscal conditions
in the West. Here, many producers are trading on attractive free cash flow
yields at spot and are likely to either re-rate or get acquired given the
consolidation we are seeing. We were active in managing exposure, trimming
positions where the risk-reward became less attractive, such as South Africa’s
AngloGold Ashanti and Pan African Resources, and reallocating to miners that had
been overlooked, including South Africa-based Harmony Gold and South-America
focused Aris Mining. There was also exposure to platinum via South African PGM
miner Valterra Platinum, given PGMs are in deficit and elasticity of demand is
very low, meaning there is scope for prices to move a long way.

We continue to have significant exposure to financials, where exposure is
diversified across regions. Many smaller EM countries have oligopolistic banking
structures, meaning they generate high returns on equity but trade at very low
multiples, so it is an area where we see huge opportunity. Held in the portfolio
are numerous value plays, including in CEE markets where several names are
extremely cheap but have little sensitivity to rate cuts, such as Hungary’s OTP
Bank, as well as several fintechs, including Brazilian digital challenger bank
Nubank. We continued to have some exposure to structural growth stories in the
Indian market as well, although we reduced some exposure to Indian banks such as
HDFC and ICICI over the period due to the increase in competition in the sector.
Here we are seeing state owned banks, which previously weren’t credible
competitors to their privately owned peers, becoming more aggressive in credit
origination, leading to greater market fragmentation.

Our exposure to information technology is focused in technology hardware with an
underweight to IT services companies, which we think are under pressure from AI
-related disruption. Our largest absolute position at year end was in Taiwanese
semiconductor foundry TSMC, where we continue to have a very positive view,
given the company is yet to flex its pricing power despite the fact that it
holds a monopoly over the market. We expect TSMC to increase prices this year,
creating significant upside. We also like Taiwanese copper-clad laminate
producer Elite Material, an R&D focused business with high barriers to entry
that is geared to data centre trends, operating in a near monopoly with a strong
competitive moat. We focused on diversifying our technology hardware exposure
over the period, introducing a new position in Taiwan’s Wiwynn, an ODM producer
of servers focused exclusively on hyperscale customers which sold off on
concerns around a near-term slowdown in demand, providing a good entry point
into what we think is the best-run ODM in the sector. We were also active to
take profits in stocks that had run ahead of fundamentals, exiting for example
Taiwanese testing equipment manufacturer Chroma ATE after it rallied
significantly from April lows, leaving the risk-reward less attractive.

At year end we had an overweight exposure to the memory space, where memory
manufacturers have become far more disciplined in capital deployment with an
effective oligopoly between three players supporting a strong demand backdrop
with limited capacity additions and ongoing de-commoditisation of the sector.
Here we hold Korea’s Samsung Electronics and SK Hynix, although over the period
we trimmed these names to take some profits and shift some exposure to their
holdcos (Samsung C&T and SK Square).

At a country level, we continue to have an underweight exposure to mainland
China, although positioning vs the index at year end was more neutral when we
consider exposure to Hong Kong and Naspers. Over the period we added exposure to
innovative technological leaders in China, particularly to R&D-intensive names
within the industrials space, which have been a key driver of the Chinese
economy over the last year. Examples include grid equipment supplier Sieyuan
Electric, which benefits from tight global supply-demand dynamics in high
-voltage switchgear, which is prompting global customers to switch from DM
competitors to Sieyuan, and is the only private company competing with a group
of inefficient SOEs, and dominant battery maker CATL, which is gaining market
share from Korean and European peers. We also initiated positions in Huaming
Power Equipment, a leading manufacturer of tap changers, devices used in
electrical transformers where demand is strong, and within the healthcare sector
APT Medical, a leading domestic medical equipment supplier, where revenues
should be driven by treatment penetration and China’s ageing population,
compounded by localisation as the business gains market share from Western peers
and a nascent export business.

Looking to other parts of the market, we remained underweight Chinese banks, a
sector experiencing net interest margin compression and which at some point will
face a very negative credit cycle. We have also become more sceptical on the
outlook for Chinese consumption and believe it will be hard to drive a sustained
recovery in Chinese housing, while much of the recovery in demand has been
driven by short-term tailwinds like trade-in subsidies, which only pull forward
demand. As a result, the exposure to consumer goods sectors was reduced. This
has included trimming exposure to the sportswear market, including Anta Sports,
where competitive rivalry is high given a fragmented market, and white goods,
where we closed the position in Haier Smart Home, although we do still see stock
-specific opportunities in some `experiences’ categories such as music
streaming, where under-monetisation and a lack of competitive pressures has
created a favourable backdrop for companies such as Tencent Music Entertainment.
We do also continue to like South African holding company Naspers, where we see
significant growth potential in its underlying asset Tencent, given the company
is under-monetised vs peers, with capacity to increase its ad load and implement
more targeted ads with the help of AI, which should support pricing power.

Elsewhere in Asia, we continued to have a small underweight in both Taiwan and
Korea, although exposure to both markets increased during the period. In Taiwan
we see multiple opportunities further down the AI supply chain, including in
names such as Elite Material and Wiwynn (discussed above). In Korea, we added
some holdco exposure in the memory space (SK Square, Samsung C&T) where we like
the underlying operating business. We think that signs of governance improvement
in Korea are a step in the right direction, but we remain cautious as share
price moves over the period were extreme and actual improvements at the company
level have so far been muted. We also added positions in Korea Investment
Holdings, a brokerage platform that should benefit from greater trading
activity, and Youngone, a well-run OEM for outdoor wear, with decent category
exposure, considerable potential to benefit from the value-up initiative and a
cheap valuation.

On the other hand, at year end we were overweight Indonesia, a country with
attractive demographic tailwinds, where we added exposure to take advantage of a
de-rating in the market. Here, companies like Indofoods, the world’s largest
noodle business, and leading grocery retailer Alfamart, should both benefit from
a rise in formal retail penetration but are trading on very cheap multiples.

In Latin America, we were overweight Brazil as at year end. Although the outcome
of the 2026 election remains uncertain and the range of outcomes is wide, the
market continues to trade at a deep discount vs history and could rally
significantly on a favourable outcome. We believe the risk-reward looks
favourable and looked to add positions in several high-quality banks. We also
had an overweight position in commodity exporting countries like Mexico and
Peru, where the strong outlook for commodities like copper is supportive and
should filter through to the consumer, too.

Within the short book, exposure is diversified and stock-specific, with an
effort to avoid crowded shorts. We typically look for two main traits: companies
with fundamentals experiencing a structural or cyclical decline, and red flags
around the balance sheet. Key positions include shorts in the Asian battery
value chain, which form a pair trade with CATL. These companies are losing
money, have weak balance sheets and a much smaller R&D budget than CATL.
Elsewhere we hold several short materials positions, including an Asian
agrochemical company facing a patent cliff and an EMEA agrochemicals business
where the valuation is a hangover from the 2022 bull market, despite negative
gross margins and high debt levels. Over the period, we introduced a short in an
Asian e-commerce company, where competitive pressures are eroding profitability,
and an Asian auto parts manufacturer with unsustainable debt levels, whose
returns have been challenged by the commoditisation of its core business.

Outlook

The outlook for EM appears constructive. The asset class continues to benefit
from a relatively strong fiscal position vs DMs, attractive valuations despite
last year’s rally, and a supportive earnings backdrop, underpinned by commodity
strength and AI-driven demand for key EM tech companies. That said, recent
concerning events in the Middle East (as at 11 March) have clearly added
complexity, increasing volatility, prompting some de-risking, and pushing oil
prices higher, with potential implications for inflation. While near-term
uncertainty has risen, many of the structural drivers that supported EM over the
past year remain in place, although clearly volatility remains elevated, and in
particular the path for inflation and interest rates has become less certain.

Taking a step back, the fiscal backdrop in EM remains supportive. The US
continues to run an elevated deficit, with growing scrutiny around debt
sustainability. By contrast, many EM economies have shown greater fiscal
restraint in this cycle. While US policy uncertainty has weighed on appetite for
US assets, key EM markets such as China have been able to shift towards
reflation given constraints in previous periods. Much of the weak sentiment
towards EM in recent years stemmed from the drawdown in China, but it now
appears that much of what drove EM’s derating is reversing.

A weaker USD, driven in part by fiscal expansion in the US, has been supportive
for EM over the past year. Clearly, higher oil prices could lift inflation and
increase the likelihood of tighter Fed policy, potentially strengthening the
USD, particularly in a risk-off environment. However, it is important to point
out that many EM economies are now less reliant on dollar funding than in
previous cycles, reducing sensitivity to USD moves.

The backdrop remains favourable for key mined commodities, particularly for
copper and gold, supporting terms of trade and domestic demand in exporting
markets such as Peru, Chile and South Africa. While lower oil prices had
previously provided an additional boost to consumption, the outlook here is more
uncertain and depends heavily on the duration of the conflict – persistently
higher prices would clearly weigh more heavily on lower-income EM countries and
large Asian oil importers.

Technology is another tailwind for EM, and one that is likely to persist despite
geopolitical turbulence. While AI enthusiasm has driven US equity performance in
recent years, critical parts of the AI supply chain sit in EM, particularly in
Taiwan and Korea, and we continue to think that much of the value accrual from
AI and data centres will go to EM companies. We see more attractive valuations
across the hardware ecosystem in these markets, where EM companies trade on
materially lower multiples than DM peers.

EM as an asset class is not without risks, and recent developments in the Middle
East underscore the need for continued vigilance. We are closely monitoring both
the macro and geopolitical backdrop and company-specific implications.

Nick Price

Chris Tennant

Portfolio Managers

12 March 2026

Spotlight on the Top 5 Holdings

as at 31 December 2025

The top five holdings comprise 32.1% of the Company’s Net Assets.

Taiwan Semiconductor Manufacturing

Industry: Information Technology

Country: Taiwan

% of Net Assets: 13.7%

TSMC is a pre-eminent Taiwanese semiconductor foundry with leading-edge
technology, which reinforces the company’s competitive position and ability to
generate incremental return on invested capital. The company has built a
technological moat over the past three decades and occupies an especially
dominant position at the forefront of the industry as competitors have dropped
from the race due to technical hurdles and the barrier of high required capital
expenditures. TSMC’s ability to hire the best talent while continuously
improving its know-how keeps it ahead of the competition and able to generate
cashflow to feed back into investing in R&D and capacity.

Naspers

Industry: Consumer Discretionary

Country: India

% of Net Assets: 7.7%

Naspers is a global internet and entertainment group and one of the world’s
largest technology investors. It is a South African holding company specialising
in internet investments and operates in more than 120 countries and markets with
long-term growth potential. It runs some of the world’s leading internet, video
entertainment, and media platforms. The company owns a sizeable stake in
Tencent, the Chinese multinational technology and entertainment conglomerate.
Naspers operates in various sectors, including online classifieds, food
delivery, payments, travel, education, health, and social and internet
platforms.

Pan African Resources

Industry: Materials

Country: South Africa

% of Net Assets: 4.0%

Pan African Resources is a South-Africa focussed gold miner, which also has an
established tailings reprocessing operation.

Samsung Electronics

Industry: Information Technology

Country: South Korea

% of Net Assets: 3.6%

Samsung Electronics is a diversified Korean technology company, with a
significant presence in consumer electronics and a leading position as one of
three major players in the global memory industry.

OTP Bank

Industry: Financials

Country: Hungary

% of Net Assets: 3.1%

OTP Bank is the dominant banking franchise in Hungary and a leading independent
financial services provider across Central and Eastern Europe.

Twenty Largest Investments

as at 31 December 2025

The Asset Exposures shown below measure exposure to market price movements as a
result of owning shares and derivative instruments. The Fair Value is the
realisable value of the portfolio as reported in the Statement of Financial
Position. Where the Company holds shares, the Asset Exposure and Fair Value will
be the same. For derivative instruments, Asset Exposure is the market value of
the underlying asset to which the Company is exposed, while the Fair Value
reflects the profit or loss on the contract since it was opened, and is based on
how much the share price of the underlying asset has moved.

Asset Exposure Fair

value
Asset Exposures – shares unless $’000 %1 $’000
otherwise stated
Taiwan Semiconductor
Manufacturing
(shares, options and long CFDs)
Information Technology 95,010 13.7 78,306
Naspers (shares, option and long
CFD)
Consumer Discretionary 53,437 7.7 639
Pan African Resources
Materials 27,897 4.0 27,897
Samsung Electronics (long CFDs)
Information Technology 25,128 3.6 1,880
OTP Bank
Financials 21,466 3.1 21,466
Aura Minerals (option and long
CFD)
Materials 20,686 3.0 1,443
Contemporary Amperex Technology
Industrials 20,446 3.0 20,446
Sieyuan Electric
Industrials 20,292 2.9 20,292
TBC Bank Group (long CFDs)
Financials 19,289 2.8 252
Cia de Minas Buenaventura (long
CFD)
Materials 17,169 2.5 (216)
NU Holdings (option and long
CFDs)
Financials 16,803 2.4 77
Endeavour Mining (option and
long CFDs)
Materials 16,607 2.4 920
Torex Gold Resources (long CFD)
Materials 16,516 2.4 342
Elite Material (long CFD)
Information Technology 16,387 2.4 414
SK Hynix
Information Technology 15,588 2.3 15,588
Kaspi.KZ (option and long CFD)
Financials 14,761 2.1 235
Aris Mining (long CFD)
Materials 14,636 2.1 443
SK Square
Industrials 14,596 2.1 14,596
Wiwynn
Information Technology 13,418 1.9 13,418
Orizon Valorizacao de Residuos
Industrials 13,399 1.9 13,399
Twenty largest exposures 473,531 68.3 231,837
Other exposures 767,830 110.9 390,420
Total exposures before index 1,241,361 179.2 622,257
hedging
Less: index hedging
MSCI Emerging Markets Index (155,395) (22.4) (2,515)
(future)
Total exposures from index (155,395) (22.4) (2,515)
hedging
Total exposures after the 1,085,966 156.80 619,742
netting of index hedging
Forward currency contracts 205
Portfolio Fair Value3 619,947
Net current assets (excluding 72,558
derivative assets and
liabilities)
Total Net Assets 692,505

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

2 Gross Asset Exposure comprises market exposure to investments of $611,772,000
plus market exposure to derivative instruments of $474,194,000.

3Portfolio Fair Value comprises investments of $611,772,000 plus derivative
assets of $19,787,000 less derivative liabilities of $11,612,000 (per the
Statement of Financial Position).

Interim Management Report

Principal and Emerging Risks and Uncertainties, Risk Management

In accordance with the AIC Code, the Board has in place a robust process for
identifying, evaluating and managing the principal risks and uncertainties faced
by the Company, including those that could threaten its business model, future
performance, solvency or liquidity. The Board, with the assistance of the
Manager, has developed a risk matrix which, as part of the risk management and
internal controls process, identifies the key existing and emerging risks and
uncertainties faced by the Company. The list of risks includes: geopolitical
risk; volatility of emerging markets and market risk; investment performance
risk; changing investor sentiment; cybercrime and information security risk;
level of discount to net asset value risk; lack of market liquidity risk;
business continuity and event management risk; gearing risk; foreign currency
exposure risk; environmental, social and governance (ESG) risk and key person
risk. Full details of these risks and how they are managed are set out on pages
23 to 27 of the Company’s Annual Report for the year ended 30 June 2025 which
isavailable on the Company’s website at www.fidelity.co.uk/emergingmarkets. The
Audit and Risk Committee continues to identify new emerging risks and take any
necessary action to mitigate their potential impact. The risks identified are
placed on the Company’s risk matrix and graded appropriately. This process,
together with the policies and procedures for the mitigation of existing and
emerging risks, is updated and reviewed regularly in the form of comprehensive
reports considered by the Audit and Risk Committee. The Board determines the
nature and extent of any risks it is willing to take in order to achieve its
strategic objectives.

The Manager also has responsibility for risk management for the Company. It
works with the Board to identify and manage the principal and emerging risks and
uncertainties and to ensure that the Board can continue to meet its Corporate
Governance obligations.

Key emerging issues that the Board has identified include; rising geopolitical
tensions including recent events in the Middle East, contagion of the Ukraine
crisis or escalation of tensions between China and Taiwan; rising inflation and
the so-called cost of living crisis impacting demand for UK-listed shares; and
climate change, which is one of the most critical emerging issues confronting
asset managers and their investors. Macro and ESG considerations, including
climate change have been included into the Company’s investment process. The
Board continues to monitor these issues.

Please note the period for this risk review is 1 July 2025 to 31 December 2025.
As a result, the update relates to this period and therefore precede the events
taking place in Middle East in early March 2026. We have, however, incorporated
a forward-looking perspective in the outlook sections to reflect more recent
developments, but note that as this is a rapidly developing situation.

The Board seeks to ensure high standards of business conduct are adhered to by
all of the Company’s service providers and that agreed service levels are met.
The Board is responsible for promoting the long-term success of the Company for
the benefit of all stakeholders and in particular its shareholders. Although the
majority of the day-to-day activities of the Company are delegated to the
Manager, the Investment Manager, and other third-party service providers, the
responsibilities of the Board are set out in the schedule of matters reserved
for the Board and the relevant terms of reference of its committees, all of
which are reviewed regularly by the Board.

Transactions with the Alternative Investment Fund Manager and Related Parties

The Alternative Investment Fund Manager («AIFM») has delegated the Company’s
investment management to FIL Investments International. Transactions with the
AIFM and related party transactions with the Directors are disclosed in Note 12.

Going Concern

In accordance with provision 35 of the 2024 AIC Code of Corporate Governance,
the Directors have assessed the prospects of the Company over a longer period
than the twelve month period required by the «Going Concern» basis. The Company
is an investment fund with the objective of achieving long-term capital growth
by investing in emerging markets. The Board considers long-term to be at least
five years, and accordingly, the Directors believe that five years is an
appropriate investment horizon to assess the viability of the Company, although
the life of the Company is not intended to be limited to this or any other
period.

The Directors have considered the Company’s investment objective, risk
management policies, liquidity risk, credit risk, capital management policies
and procedures, the nature of its portfolio and its expenditure and cash
flowprojections.

This conclusion also takes into account the Board’s assessment of the ongoing
risks as outlined on the previous pages. The Board continues to review emerging
risks that could have a potential impact on the operational capability of the
Investment Manager and the Company’s other key service providers. During the
period under review, the Board received updates from Fidelity and other key
service providers confirming that they continued to service the Company in line
with service level agreements and have suitable and robust business continuity
arrangements in place.

The Directors, having considered the liquidity of the Company’s portfolio of
investments (being mainly securities which are readily realisable) and the
projected income and expenditure, are satisfied that the Company is financially
sound and has adequate resources to meet all of its liabilities and ongoing
expenses and can continue in operational existence for a period of at least
twelve months from the date of this Half Year Report.

Accordingly, the Financial Statements of the Company have been prepared on a
going concern basis.

Continuation votes are held every five years and the next continuation vote will
be put to shareholders at the AGM in 2026.

Responsibility Statement

In accordance with Chapter 4 of the Disclosure Guidance and Transparency Rules,
the Directors confirm that to the best of their knowledge:

·the condensed set of financial statements contained within the Half Year Report
has been prepared in accordance with IAS 34 `Interim Financial Reporting’ and
gives a true and fair view of the assets, liabilities, financial position and
return of the Company;

·the Half Year Report includes a fair review of the development and performance
of the Company and important events that have occurred during the first six
months of the financial year and their impact on the condensed financial
statements;

·the Half Year Report includes a description of the principal risk and
uncertainties for the remaining six months of the financial year; and

·the Half Year Report includes a fair review of the information concerning
related party transactions.

The Half Year Report has not been audited or reviewed by the Company’s
Independent Auditor.

For and on behalf of the Board

Heather Manners

Chairman

12 March 2026

Statement of Comprehensive Income

for the six months ended 31 December 2025

Six Six
Year
months months
ended 30
ended 31 ended 31
June
December December
2025
2025 2024

audited
unaudited unaudited
Note Revenue Capital Total Revenue Capital Total
Revenue Capital Total

$’000 $’000 $’000 $’000 $’000 $’000
$’000 $’000 $’000
Revenue
Investment 4 8,858 – 8,858 10,127 – 10,127
22,941 – 22,941
income
Derivative 4 11,782 – 11,782 15,830 – 15,830
26,855 – 26,855
income
Other income 4 510 – 510 361 – 361
631 – 631
Total Income 21,150 – 21,150 26,318 – 26,318
50,427 – 50,427
Net – 139,521 139,521 – (9,533) (9,533)
– 80,979 80,979
gains/(losses)
on
investments
at
fairvalue
through
profit or
loss
Net – 28,797 28,797 – (14,304) (14,304)
– 32,226 32,226
gains/(losses)
on
derivative
instruments
Net foreign – (2,272) (2,272) – (1,108) (1,108)
– (1,475) (1,475)
exchange
losses
Total income 21,150 166,046 187,196 26,318 (24,945) 1,373
50,427 111,730 162,157
and
gains/(losses)

Expenses
Management 5 (467) (1,868) (2,335) (447) (1,789) (2,236)
(863) (3,451) (4,314)
fees
Other (932) – (932) (828) – (828)
(1,644) – (1,644)
expenses
Profit/(loss) 19,751 164,178 183,929 25,043 (26,734) (1,691)
47,920 108,279 156,199
before
finance costs
andtaxation
Finance costs 6 (11,294) – (11,294) (11,672) – (11,672)
(23,704) – (23,704)
Profit/(loss) 8,457 164,178 172,635 13,371 (26,734) (13,363)
24,216 108,279 132,495
before
taxation
Taxation (1,146) 79 (1,067) (1,095) 289 (806)
(2,347) (3,162) (5,509)
Profit/(loss) 7,311 164,257 171,568 12,276 (26,445) (14,169)
21,869 105,117 126,986
after
taxation for
the
period
attributable
to
Participating
Preference
Shares
Earnings/(loss 7 $0.12 $2.79 $2.91 $0.17 ($0.37) ($0.20)
$0.31 $1.52 $1.83
) per
Participating
Preference
Share (basic
and
diluted)

The Company does not have any income or expenses that are not included in the
profit/(loss) after taxation for the period. Accordingly, the profit/(loss)
after taxation for the period is also the total comprehensive income for the
period and no separate Statement of Comprehensive Income has been presented.

The total column of this statement represents the Company’s Statement of
Comprehensive Income prepared in accordance with IFRS. The supplementary
information on the allocation between the revenue account and the capital
reserve is presented under guidance published by the AIC.

All the profit/(loss) and total comprehensive income is attributable to the
equity shareholders of the Company. There are no minority interests.

No operations were acquired or discontinued in the period and all items in the
above statement derive from continuing operations.

Statement of Changes in Equity

for the six months ended 31 December 2025

Note Share Capital Revenue Total

premium reserve reserve equity

account $’000 $’000 $’000

$’000
Six months ended 31
December 2025
(unaudited)
Total equity at 30 6,291 706,238 59,099 771,628
June 2025
Profit after taxation – 164,257 7,311 171,568
for the period
Participating 9 – (43,351) – (43,351)
Preference Shares
repurchased
and cancelled
Participating 9 – (193,927) – (193,927)
Preference Shares
repurchased
and cancelled for
Strathclyde Pension
Fund
Buyback expenses – (1,075) – (1,075)
Dividend paid to 8 – – (12,338) (12,338)
shareholders
Total equity at 31 6,291 632,142 54,072 692,505
December 2025
Six months ended 31
December 2024
(unaudited)
Total equity at 30 6,291 695,822 51,333 753,446
June 2024
(Loss)/profit after – (26,445) 12,276 (14,169)
taxation for the
period
Participating 9 – (47,508) – (47,508)
Preference Shares
repurchased
into Treasury
Dividend paid to 8 – – (14,103) (14,103)
shareholders
Total equity at 31 6,291 621,869 49,506 677,666
December 2024
Year ended 30 June
2025 (audited)
Total equity at 30 6,291 695,822 51,333 753,446
June 2024
Profit after taxation – 105,117 21,869 126,986
for the year
Participating 9 – (94,701) – (94,701)
Preference Shares
repurchased
into Treasury
Dividend paid to 8 – – (14,103) (14,103)
shareholders
Total equity at 30 6,291 706,238 59,099 771,628
June 2025

Statement of Financial Position

as at 31 December 2025

Note 31 December 30 June 31 December

2025 2025 2024

unaudited audited unaudited

$’000 $’000 $’000
Non-current assets
Investments at fair value 10 611,772 712,861 632,011
through profit and loss
Current assets
Derivative assets 10 19,787 15,006 13,984
Amounts held at futures 47,389 52,521 44,876
clearing houses and
brokers
Other receivables 9,080 9,504 2,007
Cash at bank 23,966 9,551 1,751
100,222 86,582 62,618
Current liabilities
Derivative liabilities 10 11,612 15,784 13,660
Other payables 7,877 12,031 3,303
19,489 27,815 16,963
Net current assets 80,733 58,767 45,655

Net assets 692,505 771,628 677,666
Equity
Share premium account 6,291 6,291 6,291
Capital reserve 632,142 706,238 621,869
Revenue reserve 54,072 59,099 49,506
Total equity 692,505 771,628 677,666
shareholders’ funds

Net asset value per 11 $15.55 $11.99 $9.77
Participating Preference
Share

Statement of Cash Flows

for the six months ended 31 December 2025

Six months Six months Year

ended ended ended

31 December 31 December 30 June

2025 2024 2025

unaudited unaudited audited

$’000 $’000 $’000
Operating activities
Cash inflows from dividend income from 10,400 10,699 21,955
investments*
Cash inflows from interest income from 510 361 633
cash and collateral*
Cash inflows from dividend income from 6,612 10,979 14,390
derivatives*
Cash inflows from interest income from 342 740 1,166
derivatives*
Cash outflow from taxation paid (1,171) (1,096) (4,407)
Cash outflow from the purchase of (430,800) (372,144) (746,980)
investments
Cash inflow from the sale of investments 663,796 417,342 804,105
Cash inflow from net proceeds from 28,294 5,809 57,520
settlement ofderivatives
Cash inflow/(outflow) from amounts held 5,532 76 (7,569)
at futures clearing houses and brokers
Cash outflow from operating expenses (3,105) (3,194) (6,262)
Net cash inflow from operating 280,410 69,572 134,551
activities
Financing activities
Cash outflow from CFD interest paid (633) (10,675) (19,611)
Cash outflow from short CFD dividends (11,627) (1,280) (3,011)
paid
Cash outflow from dividends paid to (12,338) (14,103) (14,103)
shareholders
Cash outflow from repurchase of (1,048) (49,449) (95,594)
Participating Preference Shares into
Treasury
Cash outflow from repurchase and (237,002) – –
cancellation of Participating Preference
Shares
Cash outflow from repurchase and (1,075) – –
cancellation buyback expenses
Net cash outflow from financing (263,723) (75,507) (132,319)
activities
Net increase/(decrease) in cash at bank 16,687 (5,935) 2,232
Cash at bank at the start of the period 9,551 8,794 8,794
Effect of foreign exchange movements (2,272) (1,108) (1,475)
Cash at bank at the end of the period 23,966 1,751 9,551

* Comparatives for six months ended 31 December 2024 have been restated.

Notes to the Financial Statements

for the six months ended 31 December 2025

1. Principal Activity

Fidelity Emerging Markets Limited (the «Company») was incorporated in Guernsey
on 7 June 1989 and commenced activities on 19 September 1989. The Company is an
Authorised Closed-Ended Investment Scheme as defined by The Authorised Closed
-Ended Investment Schemes Rules and Guidance, 2021 (and, as such, is subject to
ongoing supervision by the Guernsey Financial Services Commission). The Company
is listed on the London Stock Exchange and is a constituent of the FTSE 250
Index.

The Company’s registered office is at Level 3, Mill Court La Charroterie, St
Peter Port, Guernsey GY1 1EJ, Channel Islands.

The Company’s investment objective is to achieve long-term capital growth from
an actively managed portfolio made up primarily of securities and financial
instruments providing exposure to emerging market companies, both listed and
unlisted.

2. Publication of Non-statutory Accounts

The Financial Statements in this Half Year Report have not been audited by the
Company’s Independent Auditor. The financial information for the year ended 30
June 2025 is extracted from the latest published annual report of the Company
which was delivered to the Guernsey Financial Services Commission.

3. Accounting Policies

(i) Basis of Preparation

These Half Year Financial Statements have been prepared in accordance with
International Accounting Standard 34, `Interim Financial Reporting’. The interim
financial statements should be read in conjunction with the Company’s Annual
Report and Financial Statements for the year ended 30 June 2025, which have been
prepared in accordance with International Financial Reporting Standards as
adopted by the European Union («IFRS»), which comprise standards and
interpretations approved by the International Accounting Standards Board
(«IASB»), the IFRS Interpretations Committee and interpretations approved by the
International Accounting Standards Committee («IASC») that remain in effect and
the Companies (Guernsey) Law, 2008.

The financial statements have been prepared under the historical cost
convention, as modified by the revaluation of financial assets and financial
liabilities at fair value through profit or loss.

(ii) Going Concern

The Directors have a reasonable expectation that the Company has adequate
resources to continue in operational existence for at least twelve months from
the date of approval of these Financial Statements. In making their assessment
the Directors have reviewed the income and expense projections, the liquidity of
the investment portfolio, stress testing performed and considered the Company’s
ability to meet liabilities as they fall due. Accordingly, the Directors
consider it appropriate to adopt the going concern basis of accounting in
preparing these financial statements.

4. Income

Six months Six months Year ended

ended ended 30 June

31 December 31 December 2025

2025 2024 audited

unaudited unaudited $’000

$’000 $’000
Investment income
UK dividends 1,115 367 619
Overseas dividends 7,743 9,758 22,320
Interest on bonds – 2 2
8,858 10,127 22,941
Derivative income
Dividends received on long 4,587 9,504 14,964
CFDs
Interest received on CFDs 360 740 1,166
Option income 6,835 5,586 10,725
11,782 15,830 26,855
Other income
Interest income from cash and 510 361 631
cash equivalents and
collateral
Total income 21,150 26,318 50,427

Special dividends of $88,000 have been recognised in capital during the period
(31December 2024: $2,340,000 and 30June 2025: $3,230,000).

5. Management Fees

Revenue Capital Total

$’000 $’000 $’000
Six months ended 31 December 2025 (unaudited)
Management fees 467 1,868 2,335
Six months ended 31 December 2024 (unaudited)
Management fees 447 1,789 2,236
Year ended 30 June 2025 (audited)
Management fees 863 3,451 4,314

FIL Investment Services (UK) Limited is the Company’s Alternative Investment
Fund Manager (the «Manager») and has delegated investment management to FIL
Investments International (FII). Both companies are Fidelity group companies.

FII charges a management fee of 0.60% per annum of the Net Asset Value of the
Company. Fees are payable monthly in arrears and calculated on a daily basis.
Management fees have been allocated 80% to capital reserve in accordance with
the Company’s accounting policies.

Management fees incurred by collective investment schemes or investment
companies managed or advised by the Investment Manager are reimbursed.

6. Finance Costs

Revenue Capital Total

$’000 $’000 $’000
Six months ended 31 December 2025 (unaudited)
Dividends paid on short CFDs 664 – 664
Interest paid on CFDs 10,630 – 10,630
11,294 – 11,294
Six months ended 31 December 2024 (unaudited)
Dividends paid on short CFDs 975 – 975
Interest paid on CFDs 10,697 – 10,697
11,672 – 11,672
Year ended 30 June 2025 (audited)
Dividends paid on short CFDs 3,506 – 3,506
Interest paid on CFDs 20,198 – 20,198
23,704 – 23,704

7. Earnings/(Loss) per Participating Preference Share

Six months Six months Year ended

ended ended 30 June

31 December 31 December 2025

2025 2024 audited

unaudited unaudited
Revenue earnings per Participating $0.12 $0.17 $0.31
Preference Share
Capital earnings/(loss) per $2.79 ($0.37) $1.52
Participating Preference Share
Total earnings/(loss) per $2.91 ($0.20) $1.83
Participating Preference Share (basic
and diluted)

The earnings/(loss) per Participating Preference Share is based on the
profit/(loss) after taxation for the period divided by the weighted average
number of Participating Preference Shares in issue during the period, as shown
below:

Six months Six months Year ended

ended ended 30 June

31 December 31 December 2025

2025 2024 audited

unaudited unaudited $’000

$’000 $’000
Revenue profit after 7,311 12,276 21,869
taxation for the period
Capital profit/(loss) 164,257 (26,445) 105,117
after taxation for the
period
Total profit/(loss) after 171,568 (14,169) 126,986
taxation for the period

Number Number Number
Weighted average number of Participating 58,911,403 71,877,832 69,485,764
Preference Shares held outside of
Treasury

8. Dividend Paid to Shareholders

Six Six months Year ended
months
ended 30 June
ended
31 December 2025
31
December 2024 audited

2025 unaudited $’000

unaudited $’000

$’000
Dividend Paid
Dividend of 26.00 cents pence per ordinary 12,338 – –
share paid for the year ended 30 June 2025
Dividend of 20.00 cents pence per ordinary – 14,103 14,103
share paid for the year ended 30 June 2024

No dividend has been declared in respect of the six months ended 31 December
2025 (six months ended 31 December 2024: none).

9. Share Capital

31 December 31 December 30 June 2025

2025 2024 Number of

Number of Number of audited

unaudited unaudited shares

shares shares
Authorised
Founder shares of no 1,000 1,000 1,000
par value
Issued
Participating
Preference Shares
held
outside Treasury
Beginning of the 64,342,245 74,646,287 74,646,287
period
Participating (3,378,107) – –
Preference Shares
repurchased
andcancelled
Participating (16,441,177) – –
Preference Shares
repurchased
andcancelled for
Strathclyde
Pension Fund
Participating – (5,311,585) (10,304,042)
Preference Shares
repurchased
intoTreasury
End of the period 44,522,961 69,334,702 64,342,245
Participating
Preference Shares
held in
Treasury*
Beginning of the 13,225,940 2,921,898 2,921,898
period
Participating – 5,311,585 10,304,042
Preference Shares
repurchased into
Treasury
Cancellation of (4,200,000) – –
Participating
Preference
Shares in Treasury
End of the period 9,025,940 8,233,483 13,225,940

Total Participating 53,548,901 77,568,185 77,568,185
Preference Shares

*The Participating Preference Shares held in Treasury carry no rights to vote,
to receive a dividend or to participate in a winding up of theCompany.

The Board of Directors is mindful that the Company’s shares have traded at a
discount to NAV for some time, and frequently deliberates appropriate discount
control mechanisms to address the imbalance between the demand and supply of the
Company’s shares. The Board intends to continue using its buyback programme to
address the discount to NAV with the ambition that it may ultimately be
maintained in single digits in normal market conditions on a sustainable basis.

The costs associated with the repurchase of the shares of $238,353,000 were
charged to the capital reserve for the six months ended 31 December 2025. (six
months ended 31 December 2024: $47,508,000 and 30 June 2025: $94,701,000).

The Company may issue an unlimited number of Shares of no par value.

Founder Shares

The Founder Shares were issued at $1 each par value, these shares are not
redeemable.

At the Extraordinary General Meeting of the Company on 30 October 2009 and in
accordance with The Companies (Guernsey) Law, 2008 it was approved that each
Founder Share be redesignated as no par value shares.

The Founder Shares confer no rights upon holders other than at general meetings,
on a poll, every holder is entitled to one vote in respect of each Founder Share
held.

10. Fair Value Hierarchy

The Company is required to disclose the fair value hierarchy that classifies its
financial instruments measured at fair value at one of three levels, according
to the relative reliability of the inputs used to estimate the fair values.

Classification Input
Level 1 Valued using quoted prices in active markets for identical
assets
Level 2 Valued by reference to inputs other than quoted prices
included in level 1 that are observable (i.e. developed using
market data) for the asset or liability, either directly or
indirectly
Level 3 Valued by reference to valuation techniques using inputs that
are not based on observable market data

Categorisation within the hierarchy has been determined on the basis of the
lowest level input that is significant to the fair value measurement of the
relevant asset. The table below sets out the Company’s fair value hierarchy:

31 December 2025 (unaudited) Level 1 Level 2 Level 3 Total

$’000 $’000 $’000 $’000
Financial assets at fair
value through profit or loss
Investments in equity 607,395 – – 607,395
securities
Investee funds – – 4,377 4,377
Derivative instrument assets 2,392 – – 2,392
– Futures contracts
Derivative instrument assets 2,080 – – 2,080
– Options
Derivative instrument assets – 15,110 – 15,110
– CFDs
Derivative instrument assets – 205 – 205
– forward currency contracts
611,867 15,315 4,377 631,559
Financial liabilities at fair
value through profit or loss
Derivative instrument 2,567 – – 2,567
liabilities – Futures
contracts
Derivative instrument 2,736 170 – 2,906
liabilities – Options
Derivative instrument – 6,139 – 6,139
liabilities – CFDs
5,303 6,309 – 11,612

30 June 2025 (audited) Level 1 Level 2 Level 3 Total

$’000 $’000 $’000 $’000
Financial assets at fair
value through profit or loss
Investments in equity 708,476 – – 708,476
securities
Investee funds – – 4,385 4,385
Derivative instrument assets 342 – – 342
– Futures contracts
Derivative instrument assets 3,846 98 – 3,944
– Options
Derivative instrument assets – 10,649 – 10,649
– CFDs
Derivative instrument assets – 71 – 71
– forward currency contracts
712,664 10,818 4,385 727,867
Financial liabilities at fair
value through profit or loss
Derivative instrument 4,137 – – 4,137
liabilities – Futures
contracts
Derivative instrument 1,802 630 – 2,432
liabilities – Options
Derivative instrument – 9,215 – 9,215
liabilities – CFDs
5,939 9,845 – 15,784

31 December 2024 (unaudited) Level 1 Level 2 Level 3 Total

$’000 $’000 $’000 $’000
Financial assets at fair
value through profit or loss
Investments in equity 621,157 – – 621,157
securities
Equity linked notes – 6,377 – 6,377
Investee funds – – 4,477 4,477
Derivative instrument assets 7,257 – – 7,257
– Futures contracts
Derivative instrument assets 1,178 90 – 1,268
– Options
Derivative instrument assets – 4,830 – 4,830
– CFDs
Derivative instrument assets – 629 – 629
– forward currency contracts
629,592 11,926 4,477 645,995
Financial liabilities at fair
value through profit or loss
Derivative instrument 351 – – 351
liabilities – Futures
contracts
Derivative instrument 1,262 448 – 1,710
liabilities – Options
Derivative instrument – 11,599 – 11,599
liabilities – CFDs
1,613 12,047 – 13,660

As the key input into the valuation of Level 3 investments is official valuation
statements from the Investee Fund, we do not consider it appropriate to put
forward a sensitivity analysis on the basis that insufficient value is likely to
be derived by the end users of this report.

The following table summarises the change in value associated with Level 3
financial instruments carried at fair value for the six months ended 31 December
2025, for the six months ended 31December 2024 and year ended 30 June 2025:

31December 30June 31December

2025 2025 2024

$’000 $’000 $’000
Opening balance 4,385 5,363 5,363
Sales (323) (1,138) (1,057)
Transfer to Level 1 – (1,466) –
Realised gains/(losses) 296 (7,589) (9,105)
Net change in unrealised gains 19 9,215 9,276
Closing balance 4,377 4,385 4,477

The Company’s holdings in Russian securities have been fair valued at nil as at
31 December 2025 (year ended 30 June 2025: nil and six month ended 31 December
2024: nil ) as a result of trading being suspended on international stock
exchanges. These Russian securities have a carrying cost of $90,932,976 as at 31
December 2025 (year ended 30 June 2025: $90,932,976 and six month ended
31December 2024: $90,932,976,).

The Company’s policy is to recognise transfers in and transfers out at the end
of each accounting year.

11. Net Asset Value per Participating Preference Share

31December 30June 31December

2025 2025 2024

unaudited audited unaudited
Net assets $692,505,000 $771,628,000 $677,666,000
Participating Preference 44,522,961 64,342,245 69,334,702
Shares held outside of
Treasury
Net asset value per $15.55 $11.99 $9.77
Participating Preference
Share

12. Transactions with the Manager and Related Parties

FIL Investment Services (UK) Limited is the Company’s Alternative Investment
Fund Manager and has delegated portfolio management to FIL Investments
International («FII»). Both companies are Fidelity group companies.

Details of the current fee arrangements are given in Note 5.

During the period, the Company had the following transactions payable to FII:

Six months Six months Year ended

ended ended 30 June

31 December 31 December 2025

2025 2024 audited

unaudited unaudited $’000

$’000 $’000
Investment management fees 2,335 2,236 4,314
Marketing services 170 84 334

At the Statement of Financial Position date, the following balances payable to
FII and other payables were accrued and included in other creditors:

Six months Year ended Six months

ended 30 June ended

31 December 2025 31 December

2025 audited 2024

unaudited $’000 unaudited

$’000 $’000
Investment management fees 338 365 348
Marketing services 21 43 11

At the date of this report, the Board consisted of five non-executive Directors
(as shown below) all of whom are considered to be independent by the Board. None
of the Directors has a service contract with the Company.

The annual fee structure with effect from 1 July 2025 is as follows:

1 July

2025

£
Chairman 60,000
Chair of the Audit and Risk Committee 45,000
Senior Independent Director 42,000
Director 40,000

Directors’ Shareholdings:

31 December

2025

unaudited
Heather Manners 10,000
Torsten Koster 15,000
Katherine Tsang 8,000
Dr Simon Colson 4,416
Mark Little 2,850

13. Subsequent Events

Post interim, the valuation of the Company’s holding in NCH Balkan was
reassessed. The updatedvaluation of $8.3million, an increase from $4.4million,
was reflected in the NAV on the15January 2026.

Additional Information

Board of Directors

Heather Manners (Chairman)

Torsten Koster (Senior Independent Director)

Dr Simon Colson

Mark Little

Katherine Tsang

Registered Office

Level 3, Mill Court La Charroterie

St Peter Port

Guernsey GY1 1EJ

Channel Islands

Website

www.fidelity.co.uk/emergingmarkets

The financial information contained in this Half-Yearly Results Announcement
does not constitute statutory accounts. The financial information for the six
months ended 31 December 2025 and 31 December 2024 have not been audited or
reviewed by the Company’s Independent Auditor.

The information for the year ended 30 June 2025 has been extracted from the
latest published audited financial statements, unless otherwise stated.

Neither the contents of the Company’s website nor the contents of any website
accessible from hyperlinks on the Company’s website (or any other website) is
incorporated into, or forms part of, this announcement.

A copy of the Half-Yearly Report will shortly be submitted to the National
Storage Mechanism and will be available for inspection at
www.morningstar.co.uk/uk/NSM

The Half-Yearly Report will also be available on the Company’s website at
www.fidelity.co.uk/emergingmarkets where up to date information on the Company,
including daily NAV and share prices, factsheets and other information can also
be found.

END

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