Fund Profile

Barings Emerging EMEA Opportunities 29 July 2022


Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Barings Emerging EMEA Opportunities. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

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Barings Emerging EMEA Opportunities (BEMO) is the only investment trust dedicated to the emerging markets of Europe, Middle East and Africa; a universe of countries with big potential which have little representation in mainstream emerging market indices or funds. There are also only two open-ended funds, out of the over 5000 in the Investment Association, which focus on this region, making BEMO a rare beast indeed. Yet, as we discuss in the Portfolio section below, the region has the potential to benefit from one of the major economic themes of the coming years – the energy transition – in a number of ways. The countries of the middle east offer an alternative source of fossil fuels to Russia during the transition, and high energy prices should have positive effects throughout their economies. Meanwhile, South Africa is home to companies in the mining sector which generate the raw materials needed for electric vehicles, solar panels and the like.

BEMO was known as Barings Emerging Europe until November 2020 when its universe broadened to encompass the Middle East and Africa, as well as Eastern Europe. BEMO had a material position in Russia prior to the invasion of Ukraine, which led to significant losses when it was written down in the aftermath of the invasion. The trust has traded on a wider than average Discount since the war broke out, and that is currently 18%.

The board has placed importance on the dividends paid to shareholders in the past and can make a contribution of up to 1% of NAV from capital to the annual payout. Due to the loss of income from the Russian holdings, the level of income which the portfolio can generate has been reduced. This was reflected recently in a reduction in the interim dividend.

The trust’s website address is and investors can receive updates directly from the manager by signing up at

Analyst's View

BEMO has been through a difficult patch recently, with the NAV taking a hit from the Russian invasion of Ukraine and the benchmark changing materially following the exclusion of Russian stocks from the MSCI universe. However, we believe it is time to look to the future. There is a case for investing in this collection of markets which could appeal to many. In particular we note the Gulf states are receiving renewed attention from international, professional investors. This has been boosted by the prospect of structurally higher energy prices thanks to the exclusion of Russian products from Western markets and a slowdown of investment in production by Western companies. Saudi Arabia, in particular, looks an even more critical source of hydrocarbons in the short to medium term. Meanwhile South Africa is rich in the minerals which are critical to the green energy revolution, be it for electric cars or solar panels. As a result, EMEA offers a way to play both sides of the energy transition. Additionally, we note the Gulf states were making efforts to encourage foreign investment prior to the invasion of Ukraine, impelled by their recognition that the era of fossil fuels is coming to an end.

At the time of writing, BEMO is available on a wide discount of 17.8%, the widest in the global emerging market sector. This could prove to be a good long-term entry point, although we note that the growing risks of a recession in key countries like the US may mean the immediate future is volatile.


  • Offers attractive diversification to the typical exposure of a global or global emerging markets trust
  • Managers have a strong track record of generating alpha and Barings is a major investor in the trust’s under-researched markets
  • Gulf states benefit from structurally higher energy prices


  • Political and liquidity risks can be higher in the smaller emerging markets
  • High materials and energy exposure could make the trust vulnerable to a global recession
  • The small size of the trust will exclude many professional investors and may call into question the viability of the vehicle if there are further market falls
Continue to Portfolio

Fund History

16 May 2024 Fund Analysis
BEMO has had a strong year, and offers multiple layers of value…
20 Sep 2023 Five questions about emerging markets
We track key developments in the diverse emerging markets universe…
06 Apr 2023 Fund Analysis
BEMO aims to provide capital growth and an attractive level of income via investments across emerging Europe, the Middle East and Africa...
15 Sep 2022 Same same but different
We discuss the case for emerging markets at different stages of development…
29 Jul 2022 Fund Analysis
BEMO offers exposure to both sides of the energy transition…
27 Apr 2022 Finding value in a haystack
Non-income value strategies are becoming increasingly scarce, but the holdouts represent attractive near-term opportunities…
25 Mar 2022 Slides and Audio: Barings Emerging EMEA Opportunities
Download the presentation and listen to the audio from our 'Ideas for your ISA' virtual Spring event on 16 March...
23 Mar 2022 Fifteen ideas for your ISA
Slides and audio from our event last week, featuring fund managers running money in every major market in the world...
23 Feb 2022 Regime change
Ahead of our spring conference, we ask whether investors need to junk their portfolios and start again…
26 Jan 2022 Fight or flight...
Two of our analysts debate the impact that war in Ukraine could have on investors' portfolios...
22 Dec 2021 No humbug
Our analysts look back at a year of predictions, theories and ideas, and highlight those they think could matter most…
08 Dec 2021 Results analysis: Barings Emerging EMEA Opportunities
BEMO has outperformed its benchmark and the emerging markets index in a barnstorming year for EMEA…
13 Oct 2021 Beyond the Middle Kingdom
As momentum falters in the emerging markets powerhouse, we examine the options for investors outside China...
29 Sep 2021 Fund Analysis
BEMO is a very different way to play the energy transition…
01 Sep 2021 Winter is coming
Summer was a welcome opportunity for exhausted investors to turn their backs on the legion threats they face, but they haven't gone away and the days grow short - we examine four in detail...
25 Aug 2021 Is the UK’s debt a ticking time bomb?
Our analyst argues Rishi is right to worry about government debt and borrowing…
28 May 2021 Results analysis: Barings Emerging EMEA Opportunities
Reporting results for the six months ending 31 March 2021, BEMO outlined the early success of the broadened investment strategy…
10 Mar 2021 Spring Conference '21
Audio and presentations from 21 of the UK’s leading investment trust managers…
04 Mar 2021 Slides and Audio: Barings Emerging EMEA Opportunities
Download the presentation and listen to the audio from our 'Ideas for your ISA' Spring Conference on 02 March...
24 Feb 2021 Fund Analysis
BEMO is Barings Emerging Europe under a widened mandate offering greater alpha and dividend potential…
09 Dec 2020 A bumper harvest?
Agricultural and industrial commodities have rallied strongly, but what are the implications for emerging market allocations...?
13 Aug 2020 Underground bangers
We look for hidden gems in the smaller end of the investment trust universe...
24 Jun 2020 Fund Analysis
BEE’s portfolio’s cheap valuations and strong fundamentals make it a potential recovery play...
18 Jun 2020 Gimme shelter
As income investors brace for impact we ask which regions and trusts are less likely to cut their dividends in 2020…
29 Apr 2020 On solid ground
Our analysis of discounts highlights trusts which are likely to offer significantly less discount downside from the current level…
18 Mar 2020 Their darkest hour?
We update our shortlist of discount opportunities...
16 Jan 2020 Drifting apart: how emerging markets have become less correlated
We examine how correlations between different emerging markets have evolved, and whether single country strategies could diversify returns going forward....
05 Dec 2019 Fund Analysis
BEE invests in strikingly cheap markets and has a strong track record of alpha and dividend generation…
06 Nov 2019 Times are a changin'? The case for a value resurgence
We are in the midst of the longest period of value underperformance since the 1920s. Could we be approaching a change in environment?
14 May 2019 Fund Analysis
Baring Emerging Europe offers a high dividend yield of 4.5% from its unique focus on a cheaply valued region ...
01 May 2019 Sweet or sour?
Three months in, we check up on our list of discount opportunities...
13 Feb 2019 Sweet treats
Eight trusts with the potential for strong returns, currently sitting on unusual discounts...
06 Feb 2019 Income for the long haul
With 'ISA season' looming we identify investment trusts which offer long-term, dependable income streams for yield-hungry investors...
24 Dec 2018 Why did the chicken cross the road?
Because he was so bored of reading newspapers devoted entirely to Brexit he was hoping he’d be hit by a truck.
28 Nov 2018 Every cloud...
The endless grinding negativity of Brexit has driven investors away from Europe in scores, but some managers see rich pickings for those willing to take the risk...
10 Oct 2018 Information overload
Our analysis shows the long term case for emerging markets remains largely unaffected by much of the negative newsflow surrounding the sector...
09 Oct 2018 Fund Analysis
Baring Emerging Europe offers capital growth and a dividend yield from a unique portfolio of stocks in developing Europe...
30 May 2018 Forza Italia!
Recent weeks have seen Italy's rocky relationship with the EU thrust into the spotlight once again, but apart from fresh volatility - how much has really changed?
05 Apr 2018 The search for discounted yield
We scour the investment trust universe for trusts offering chunky yields on a discount...
29 Mar 2018 Fund Analysis
An unusual combination of high-alpha stockpicking, with a portfolio exhibiting strong growth credentials and decent dividend income
30 Nov 2017 Race ready?
We analyse the outlook for emerging markets and, in particular, the genuine active funds that focus on them…
27 Sep 2017 Fund Analysis
A differentiated equity growth offering a combination of capital growth and income generation from stcoks listed in countries such as Russia, Turkey and Poland...
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