JPMorgan Emerging Europe Middle East & Africa Securities : Half Year Report & Financial Statements for the six months ended 30th April 2024

JPMorgan Emerging Europe, Middle East & Africa Securities plc

Half Year Report & Financial Statements for the six months ended 30th April 2024

Information about the Company

History

The Company was launched in December 2002 by a placing and offer for subscription. It is the successor Company to The Fleming Russia Securities Fund Limited, a closed-ended investment company incorporated in Jersey and listed on the Irish Stock Exchange. The Company adopted its present name on 1st March 2006. On 23rd November 2022 shareholders approved a widening of the Company's Investment objective to include Emerging Europe, Middle East & Africa. On the same date the Company's name was changed to JPMorgan Emerging Europe, Middle East & Africa Securities plc.

Directors

Eric Sanderson (Chairman)

Dan Burgess (Audit Committee Chairman)

Nicholas Pink (Nomination Committee Chairman)

Company Numbers

Company registration number: 4567378

Ordinary Shares

London Stock Exchange Sedol number: 0032164732

ISIN: GB0032164732

Bloomberg ticker: JEMA LN

LEI: 549300II3MHI98ZLVH37

Market Information

The Company's shares are listed on the London Stock Exchange. The market price is shown daily in the Financial Times and on the JPMorgan website at www.jpmeemeasecurities.comwhere the share price is updated every 15 minutes during trading hours.

Website

www.jpmeemeasecurities.com

Share Transactions

The Company's shares may be dealt in directly through a stockbroker or professional adviser acting on an investor's behalf.

Manager and Company Secretary

JPMorgan Funds Limited

A member of the AIC

Company's Registered Office

60 Victoria Embankment London EC4Y 0JP

Telephone: [phone] or [phone]

email: [e-mail]

For company secretarial and administrative matters, please contact Paul Winship at the Company's registered office.

Depositary

The Bank of New York Mellon (International) Limited

160 Queen Victoria Street

London EC4V 4LA

The Depositary has appointed JPMorgan Chase Bank, N.A. as the Company's custodian.

Registrars

Computershare Investor Services PLC The Pavilions

Bridgwater Rd Bristol BS99 6ZZ United Kingdom

Telephone + 44 (0) 370 707 1512

Lines open 8.30a.m. to 5.30p.m. Monday to Friday. Shareholders can manage their shareholding online by visiting Investor Centre at www.investorcentre.co.uk, Shareholders just require their Shareholder Reference Number ('SRN'), which can be found on any communications previously received from Computershare.

Independent Auditor

BDO LLP

55 Baker Street,

London W1U 7EU

Brokers

Deutsche Numis

The London Stock Exchange Building,

10 Paternoster Square,

London, EC4M 7LT

J.P. Morgan Asset Management

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Contents

Half Year Performance

Financial Highlights	5

Chairman's Statement

Chairman's Statement	8

Investment Review

Investment Manager's Report	11
Portfolio Analysis	17
List of Investments	18

Financial Statements

Condensed Statement of Comprehensive Income	21
Condensed Statement of Changes in Equity	22
Condensed Statement of Financial Position	23
Condensed Statement of Cash Flows	24
Notes to the Condensed Financial Statements	25

Interim Management Report

Interim Management Report	28

Shareholder information

Glossary of Terms and Alternative Performance Measures ('APMs') (unaudited)	30
Investing in JPMorgan Emerging Europe, Middle East & Africa Securities plc	32
Share Fraud Warning	33
Information about the Company	34

J.P. Morgan Asset Management

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Half Year Performance

Half Year Performance

Financial highlights

Returns (including dividends reinvested) to 30th April 2024

		3 Years	5 Years	10 Years
6 Months	1 Year3	Cumulative	Cumulative	Cumulative

Return to shareholders1,A

Return on net assets2,A

Reference index return1,3

Net asset return compared to reference index return3

-25.1% -19.1% -85.5%-81.4%-66.0%

+6.9%

+6.6%

-93.0%

-91.3%

-83.9%

+9.1%

+9.0%

n/a

n/a

n/a

-2.2%

-2.4%

n/a

n/a

n/a

• Source: Morningstar.

• Source: Morningstar/J.P. Morgan, using cum income net asset value per share.

• Following shareholder approval of the change to the Company's Investment Objective and Investment Policies, the Company adopted the S&P Emerging Europe, Middle East & Africa BMI Net Return in GBP as a reference index with effect from 1st March 2023. Previously, the Company's benchmark was the RTS index in sterling terms which has been suspended to western news services since 30th June 2022. Consequently, no benchmark or reference index performance is shown for periods starting prior to 1st March 2023.

• Alternative Performance Measure ('APM').
  A glossary of terms and APMs is provided on pages 30 and 31.

J.P. Morgan Asset Management

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Half Year Performance

Financial Highlights

Summary of results

	30th April	31st October	%
	2024	2023	change
Shareholders' funds (£'000)	19,958	18,880	5.7
Net asset value per shareA	49.4p	46.7p	5.8
Share price	89.5p	119.9p	-25.4
Share price premium to net asset value per shareA	81.2%	156.7%
Shares in issue	40,436,176	40,436,176
Revenue return per share	0.10p	0.76p
Net cash	3.2%	8.0%
Ongoing chargesA	4.40%	3.19%

• Alternative Performance Measure ('APM').
• glossary of terms and APMs is provided on pages 30 and 31.

6	JPMorgan Emerging Europe, Middle East & Africa Securities plc - Half Year Report & Financial Statements 2024

Chairman's Statement

Aldar Properties - Abu Dhabi's

Chairman's Statement

Chairman's Statement

	Overview and performance
	During the six months ended 30th April 2024, the Company's net asset value on a total return basis
	increased by 6.9%, an underperformance of 2.2% against the Company's reference index, the S&P
	Emerging Europe, Middle East & Africa BMI Net Return in GBP, which increased 9.1% on a total return
	basis to the end of this reporting period. The reasons for the underperformance against the reference
	index includes the Company's currently high ongoing charges and its holding of Russian assets,
Eric Sanderson	which do not form part of the reference index.
Chairman	As at 30th April 2024, the Company's share price was 89.5 pence, a decrease of 25.4% in the six-month
	period. As at 12th June 2024 the share price was 107.5 pence.
	The tragic events in Ukraine since Russia's military invasion, commenced on 24th February 2022,
	continue to cast a shadow over the global economy. The strict economic sanctions that followed the
	invasion remain in place and the valuation of the Company's Russian assets continues to be
	drastically reduced. Extensive details on the negative impact that the events in Ukraine have had on
	the Company are provided in my Chairman's Statement included in the Company's 2022 annual
	report and in the list of question and answers (Q&A) available on the Company's website
	www.jpmeemeasecurities.com

Revenue, earnings and dividend

The Company's revenue for the six-month period to 30th April 2024 after taxation was £41,000 (30th April 2023: £375,000) and the return per share, calculated on the basis of the average number of shares in issue was 0.10 pence (30th April 2023: 0.93 pence) per share.

One of the main drivers of the reduction in the Company's revenue after taxation compared to the previous year is the increase in the Company's custody fees, charged by JPMorgan Chase Bank, N.A. (the Company's Custodian) for the Company's Russian assets, which have now reverted to being calculated on their local market value which are significantly higher than the written down valuation included in the Company's accounts. The increased custody fees are also a major factor in the increase in the Company's ongoing charge which was 4.4% (on an annualised basis) as at 30th April 2024 (30th April 2023: 2.3%). The management fee charged by JPMorgan Funds Ltd continues to be based on the Company's assets excluding the value of the Russian holdings. The Board are in discussion with the Manager regarding the current level of the custody fee.

At present, the dividends paid from the Russian securities in the Company's portfolio are held in a custody 'S' account in Moscow. The balance on the 'S' account as at 2nd May 2024 was equivalent to approximately £25.2 million at the exchange rate applicable on that date. The Company's Manager is monitoring the receipts into the 'S' account against dividends announced by the portfolio companies although there is no certainty that the sums in the 'S' account will ever be received by the Company. The Board also monitors the underlying local value of the Russian assets, although there is much uncertainty of these values ever being realisable by the Company.

As at 2nd May 2024, an additional £7.9 million has been announced but is yet to be received. Your Board has also taken a keen interest in this in order to be satisfied that all dividends due are in fact recorded in the 'S' Account. As previously detailed, these dividends cannot be remitted to the Company and may never be received. They are not recognised in the Company's net asset value or in its income statement.

As previously announced by the Board via RNS, the Company's Manager confirmed that the Company's assets (both securities and funds) held in custody 'S' accounts in the name of JPMorgan Bank International (the Russian sub-custodian used by JPMorgan Chase Bank, N.A.) are not subject to the freezing order claimed by VTB in the Russian courts on 17th April 2024. However, the possibility of a retaliatory response to current Western governments discussions regarding the use of sanctioned Russian assets to help finance Ukraine's war effort seems to be always possible. We will continue to monitor developments.

8	JPMorgan Emerging Europe, Middle East & Africa Securities plc - Half Year Report & Financial Statements 2024

Chairman's Statement

Chairman's Statement

Discount control

Due to the current extreme market conditions that have created the unusual situation whereby the Company's shares are currently trading at a very elevated premium to its net asset value, the Board has no plans to reinstate the Company's share discount control programme. As at 30th April 2024, the premium was 81.2%, this a significant reduction from the premium at the year end of 156.7%. The Board believes that this premium arises due to a difference in the view of what the Company's net assets are valued at and should not be interpreted as an indication that investors are more likely to derive any value from the Company's Russian shareholdings.

Investment Management

As detailed in the RNS announcement of 26th March 2024, Pandora Omaset left JPMorgan and Oleg Biryulyov continues to be the Company's Investment Manager supported by JPMorgan Asset Management's Emerging Markets and Asia Pacific equities team (EMAP). JPMAM's EMAP team consists of 100+ investment professionals based in both the UK and overseas.

Board Composition

As noted in the Company's previous Annual Report, the Board has engaged an independent third party search consultant to undertake a search for a fourth non-executive director. We are hopeful that the search will result in the appointment of a new director this year.

Change of Company Registrar

With effect from 3rd June 2024, the Company has transferred the management of its share register from Equiniti Financial Services Limited to Computershare Investor Services PLC ('Computershare'). Shareholders holding their shares directly, rather than via a third-party platform, will be contacted directly by Computershare. Further details are available on the Company's website.

Outlook

With little prospect of Russia's invasion of Ukraine being resolved in the foreseeable future or the limiting of the existing strict economic sanctions, the Company's investment objective at least helps the Company steer through this very difficult period. Although cognisant of the Company's continuing holdings in Russian companies, the challenge for the Board is to use the investment objective to grow the Company's assets in a way that promotes the success of the Company for the benefit of the shareholders as a whole.

The Board is confident that, with the assistance of the JPMorgan EMAP team over the long term and a supportive political and regulatory environment, its investment objective is achievable.

Eric Sanderson
Chairman	13th June 2024

J.P. Morgan Asset Management

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Investment Review

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