the world markets umbrella fund plc · 85 south mall one dockland central cork guild street ireland...

CITY OF LONDONInvestment Management Company Limited

The World Markets Umbrella Fund plcAnnual Report and Audited Financial Statements

For the financial year ended 31 January 2020

Contents Page

Management and Administration 1

Directors’ Report 2

Investment Manager’s Report

The Emerging World Fund 6

Report from the Depositary to the Shareholders 10

Independent Auditor’s Report to the Members 11

Statement of Financial Position 13

Statement of Comprehensive Income 14

Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares 15

Statement of Cash Flow 16

Notes forming part of the Financial Statements 17

Portfolio Statement 32

Significant Portfolio Movements (unaudited) 34

Supplemental Unaudited Information 35

UCITS V Remuneration Policy (unaudited) 37


1The World Markets Umbrella Fund plc

MANAGEMENT AND ADMINISTRATIONREGISTERED OFFICE

6th Floor2 Grand Canal Square

Dublin 2Ireland

BOARD OF DIRECTORSMark Dwyer (British)

Josephine Kitcher (British)Kevin Molony (Irish)(Independent) (Chairman)

Patricia Taylor (Irish)

All Directors are non-executive.

INVESTMENT MANAGERCity of London Investment Management Company Limited

77 Gracechurch StreetLondon EC3V 0AS

England

ADMINISTRATOR REGISTRAR AND TRANSFER AGENTBNY Mellon Fund Services (Ireland) Designated BNY Mellon Fund Services (Ireland) DesignatedActivity Company Activity CompanyOne Dockland Central Wexford Business ParkGuild Street RochestownInternational Financial Services Centre Wexford Y35 VY03Dublin 1 IrelandIreland

AUDITOR DEPOSITARY*KPMG (Up to 30 November 2019)Chartered Accountants and Statutory Audit Firm BNY Mellon Trust Company (Ireland) Limited85 South Mall One Dockland CentralCork Guild StreetIreland International Financial Services Centre

Dublin 1Ireland

(Effective 1 December 2019)The Bank of New York Mellon SA/NV, Dublin BranchRiverside 2Sir John Rogerson’s QuayGrand Canal DockDublin 2Ireland

SECRETARY LEGAL ADVISORSWilton Secretarial Limited William Fry Solicitors6th Floor 6th Floor2 Grand Canal Square 2 Grand Canal SquareDublin 2 Dublin 2Ireland Ireland

*Please refer to Note 21 of the financial statements

2 The World Markets Umbrella Fund plc

Directors’ Reportfor the financial year ended 31 January 2020

The Directors present herewith their Annual Report and Audited Financial Statements of The World Markets UmbrellaFund plc (the “Company”) for the financial year ended 31 January 2020. The Company was incorporated on 6 August1998 as an open-ended investment company with variable capital and limited liability under the laws of the Republic ofIreland under registration number 291789.

At 31 January 2020, the Company comprises of one active fund; The Emerging World Fund (the “Fund”).

Statement of Directors’ ResponsibilitiesThe Directors are responsible for preparing the Directors’ Report and financial statements, in accordance with applicablelaw and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law, they have electedto prepare the financial statements in accordance with International Financial Reporting Standards (“IFRS”) as adoptedby the European Union (“EU”) and applicable law.

Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a trueand fair view of the assets, liabilities and financial position of the Company and of its changes in net assets attributable toholders of redeemable participating shares for that financial year. In preparing the financial statements, the Directors arerequired to:

• select suitable accounting policies and then apply them consistently; • make judgments and estimates that are reasonable and prudent; • state whether applicable accounting standards have been followed, subject to any material departures disclosed and

explained in the financial statements;• assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern;

and • use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations,

or have no realistic alternative but to do so.

The Directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any timethe assets, liabilities, financial position and profit or loss of the Company and enable them to ensure that its financialstatements comply with the Companies Act 2014, the European Communities (Undertakings for Collective Investmentin Transferable Securities) Regulations 2011, as amended (the “UCITS Regulations”) and the Central Bank (Supervisionand Enforcement) Act 2013 (Section 48 (1)) (Undertakings for Collective Investment in Transferable Securities)Regulations 2019 (the “Central Bank UCITS Regulations”). They have general responsibility for taking such steps as arereasonably open to them to safeguard the assets of the Company. In this regard, they have entrusted the assets of theCompany to a depositary for safe-keeping. They are responsible for such internal controls as they determine is necessaryto enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error,and to prevent and detect fraud and other irregularities. The Directors are also responsible for preparing a Directors’ Reportthat complies with the requirements of the Companies Act 2014.

The Directors are responsible for the maintenance and integrity of the financial information included on the InvestmentManager’s website, www.citlon.co.uk. Legislation in the Republic of Ireland governing the preparation and disseminationof financial statements may differ from legislation in other jurisdictions.

Activities, Business Review and Future DevelopmentsThe Directors have directed the affairs of the Company so as to enable it to maintain its status as an investment company.There was no change in the nature of the Company’s business during the financial year. The Directors consider that thechange in the net asset value ("NAV") per share is a key indicator of the performance of the Company. A review of theperformance of the Company during the financial year is included in the Investment Manager’s Report. The Directors donot anticipate any future change in the structure or investment objectives of the Company, other than as disclosed in thefinancial statements.

Significant Events During the Financial YearDetails of significant events during the financial year are disclosed in Note 21 to the financial statements.


Directors’ Report (continued)for the financial year ended 31 January 2020

Subsequent EventsThe recent outbreak of the coronavirus disease 2019 (abbreviated as “COVID-19”) has had, and continues to have, a materialimpact on global markets in several ways, including: (i) adding uncertainty to global markets with regard to how long andhow serious COVID-19 may prove over time (ii) impeding regular business operations across many different businesses,including manufacturers and service providers; and (iii) slowing down or stopping international, national, and local travel.

Any and all such events mentioned above could have a material adverse effect on the Company’s returns given the extentto which the Company makes investments that have exposure to certain businesses or industries suffering downturns orimpediments exacerbated by COVID-19.

The Board are satisfied that the Investment Manager is actively monitoring and managing the Company’s assets within thedefined investment and risk parameters that have been established by the Board. With regard to day to day operations, theInvestment Manager and the other service providers to the Company have invoked business continuity procedures, includingremote working, to ensure the safety of staff and to enable the business to continue to operate. So far the Investment Managerand all service providers have been able to maintain an acceptable level of service with minimal disruption.

The eventual overall financial impact of the pandemic cannot be established reliably at this time but its adverse impact oneconomic and market conditions is expected to trigger a period of global economic slowdown.

The Company performance is down 19.8% for the year up to 18 May 2020, compared to the benchmark which is down18.0%. The Company has recorded a drop in AUM of $23.7mm up to 18 May 2020.

Subsequent to 31 January 2020 and up to 18 May 2020, the Company had not seen any material net outflows.

A revised supplement for The Emerging World Fund was published on 24 March 2020.

There have been no other significant events affecting the Company since 31 January 2020 that require amendment to ordisclosure in the financial statements.

BrexitThe UK left the EU on 31 January 2020 with a transition period running until 31 December 2020 to allow for newUK-EU negotiations to take place.

The Company being an Irish domiciled UCITS fund with a UK domiciled investment manager will be impacted by Brexitand has, as far as it can without establishing an EU domiciled management company, ensured that in the event of a hardBrexit taking place on 31st December 2020 (or other agreed exit date), that the Company can continue to operate as aresult of the measures put in place by the European and UK regulators.

At the beginning of January 2019, the Investment Manager submitted a notification under the UK’s Temporary PermissionsRegime (“TPR”) ensuring that the Company will continue to be recognised in the UK in the event the UK leaves the EUwith no agreement on 31st December 2020 (or other agreed exit date).

At the beginning of February 2019, ESMA confirmed that they and 27 National Competent Authorities (“NCA”) haveentered into a Memorandum of Understanding (“MOU”) with the UK’s regulator, which will allow UK domiciledinvestment managers to continue to manage EU domiciled funds should the UK leave the EU with no agreement on31 December 2020 (or other agreed exit date).

Furthermore, on 4 February 2019, the Central Bank of Ireland (“CBI”) issued a notification that they recognise that theremay be considerable disruption if the UK leaves the EU with no agreement on 31 December 2020 (or other agreed exitdate). In such an event, the CBI will continue to recognise the UK as a country meeting its European Economic Area(“EEA”) residency rule whilst it determines whether or not the UK will continue to satisfy the EEA residency rule in thefuture. Following its consideration, the CBI will publish its decision on its website.

Risk Management Objectives and PoliciesThe Company’s investment activities expose it to various types of risk, which are associated with the financial instrumentsand markets in which it invests. Details of the risks inherent in investing in the Company are disclosed in Note 14 of thefinancial statements.



Directors’ Statement on Adequate Accounting RecordsThe Directors believe that they have complied with the requirements of the Companies Act 2014, with regard to adequateaccounting records by employing personnel with appropriate expertise and by providing adequate resources to the financefunction. The accounting records of the Company are maintained at BNY Mellon Fund Services (Ireland) DesignatedActivity Company, One Dockland Central, Guild Street, International Financial Services Centre, Dublin 1.

Statement on Relevant Audit InformationSo far as the Directors are aware, there is no relevant audit information of which the statutory auditors are unaware. TheDirectors have taken all steps that they ought to have taken to make themselves aware of any relevant audit informationand they have established that the statutory auditors are aware of that information.

ResultsThe results of the operations for the financial year are set out in the Statement of Comprehensive Income. A review of theactivities of the Company is contained in the Investment Manager’s Report.

Segregated LiabilityThe Company has converted to segregated liability status under the provisions of the Investment Funds, Companies andMiscellaneous Provisions Act, 2005. As such, under Irish law the Company will not be liable as a whole to third parties,in respect of liabilities attributable to an individual fund.

DividendsThe Directors do not recommend the payment of any dividends in respect of the Fund. Accordingly, income and capitalgains arising in respect of the Fund will be reinvested in the Fund and reflected in the NAV per Share of the Fund.

Connected Person TransactionsIn accordance with the requirements of the Central Bank UCITS Regulations, all transactions carried out with the Company bythe Investment Manager, the Depositary and/or their associate and group companies (“connected persons”) must be carried outas if negotiated at arm’s length and be in the best interests of shareholders. The Directors are satisfied that there are arrangementsin place (evidenced by written procedures) to ensure that these obligations are applied to all transactions with connected personsand that transactions with connected persons entered into during the financial year complied with these obligations.

DirectorsThe Directors of the Company during the financial year ended 31 January 2020 are listed below:Mark Dwyer (British) Josephine Kitcher (British)Kevin Molony (Irish) (Independent) (Chairman)Patricia Taylor (Irish)

Statement of Corporate GovernanceThe Board of Directors (the “Board”) has adopted the Irish Funds’ Code of Corporate Governance for Collective InvestmentSchemes and Management Companies (the “IF Code”). The IF Code is a voluntary code which can be adopted on a‘comply or explain’ basis, and the Board has chosen to adopt it in full. The contents of the IF Code can be reviewed atwww.irishfunds.ie/fs/doc/publication. The Board has reviewed and assessed the measures included in the IF Code and considersits corporate governance practices and procedures since the adoption of the IF Code as consistent therewith.

Directors’ Compliance StatementIt is the policy of the Company to comply with its relevant obligations (as defined in the Companies Act 2014). As requiredby Section 225 (2) of the Companies Act 2014, the Directors acknowledge that they are responsible for securing the Com-pany’s compliance with the relevant obligations. The Directors have drawn up a compliance policy statement as defined inSection 225 (3)(a) of the Companies Act 2014 and a compliance policy which refers to the arrangements and structuresthat are in place and which are, in the Directors’ opinion, designed to secure material compliance with the Company’s rel-evant obligations. These arrangements and structures were reviewed by the Company during the financial year. In dis-charging their responsibilities under Section 225, the Directors relied upon, among other things, the services provided,advice and/or representations from third parties whom the Directors believe have the requisite knowledge and experiencein order to secure material compliance with the Company’s relevant obligations.



Directors’ Interests in the Shares of the CompanyMark Dwyer, a Director of the Company, holds 401 shares in the £ Institutional Class of the Fund. According to theRegister of Directors and Secretary, none of the Directors or the Company Secretary has any other interest in the sharecapital of the Company.

Transactions Involving DirectorsApart from as noted below, the Board of Directors is not aware of any contracts or arrangements of any significance inrelation to the business of the Company in which the Directors had any beneficial interest, as defined in the CompaniesAct 2014, at any time during the financial year.

As at 31 January 2020, Mark Dwyer and Josephine Kitcher are employees of the Investment Manager. Investmentmanagement fees of US$1,338,007 (31 January 2019: US$1,553,287) were charged to the Company by the InvestmentManager during the financial year.

Patricia Taylor is a Director of Wilton Secretarial Limited, the Company Secretary and a partner of William Fry solicitors, whoprovide legal services to the Company. Fees in respect of the Company Secretary are detailed in Note 11 of the financial statements.Legal services fees of US$88,286 (31 January 2019: US$156,895) were paid to William Fry during the financial year.

As employees of the Investment Manager, Mark Dwyer and Josephine Kitcher do not receive a fee for their services as Directors.

Political DonationsThere were no political donations made by the Company during the financial years ended 31 January 2020 and 31 January 2019.

Auditor The Company’s Auditor, KPMG, Chartered Accountants, have indicated their willingness to remain in office in accordancewith Section 383 (2) of the Companies Act 2014.

On behalf of the Board

Director: Kevin Molony

Director: Patricia Taylor

19 May 2020


Investment Manager’s Report

THE EMERGING WORLD FUND (“EWF”)

EWF Market Review

Emerging market (“EM”) equities, as measured by the MSCI Emerging Markets (“MSCI EM”) Index, rose by 3.8% innet total return US dollar terms in the year to end-January 2020. The index had been up by as much as 12.1% during theperiod. However, the onset of the coronavirus pushed EM equities down early in the New Year, particularly in China – theepicentre of the epidemic. Gains over the period came mainly during the final quarter of 2019 amid a thawing in tradetensions between the US and China and the signing of a “phase one” trade deal. Moreover, global economic indicatorsshowed signs of stabilising towards the end of 2019, raising market confidence.

China’s Gross Domestic Product (“GDP”) expanded by 6.1% year on year (“yoy”) in 2019, down from 6.7% the prioryear and the slowest annual pace since 1990, but within the government’s 6.0-6.5% target range. The deceleration wasbroad-based as the economy was hampered by the trade war and slowing external demand. Fixed asset investment growthdeclined from 5.9% yoy in 2018 to 5.4% in 2019, retail sales by 1.0% point to 8.0% and industrial production from 6.2%to 5.7%. The Chinese authorities engaged in policy easing over the year, with the central bank reducing the reserverequirement ratio for major banks by 200 basis points (“bps”) to 12.5%. This was likely supportive for equities, whichhad anticipated a growth slowdown. Both the MSCI China and the MSCI China A indices outperformed EM over theperiod, rising by 5.8% and 22.4%, respectively.

India’s general election in April to May 2019 unexpectedly led to an increased majority for the ruling Bharatiya Janata Party(“BJP”). The party won 303 seats out of 545 in the Lok Sabha (lower house of parliament), up from 282 in the 2014election. This was taken positively by markets as it gave the business friendly BJP a stronger mandate and reduced politicaluncertainty. Meanwhile, food-price inflation reached a historical high, at 14.2% yoy in December, pushing up the headlinerate to the highest in over five years (7.4%). However, core inflation has fallen over the past year and reached a historicallow in October (3.4%). This was partly driven by slowing growth, with GDP decelerating to 4.3% yoy in Q3 2019 against7.0% in Q3 2018. As a result, the central bank, Reserve Bank of India (“RBI”) eased policy, cutting the repurchase agreement(“repo”) rate by 135bps to 5.15% over the period. The favourable political and economic backdrop led to outperformanceof the MSCI India index by 5.0% against the MSCI EM Index in the 12 months to end-January 2020.

Meanwhile, Saudi Arabia entered MSCI EM in May with a 2.6% index weight. The country also listed 5% of Saudi Aramcoin December, with the stock rising by as much as 18.8% post listing, valuing the company above the $2 trillion levellong-targeted by Crown Prince Mohammed bin Salman. These moves are part of the country’s attempt to open its marketto foreign investors. The MSCI Saudi Arabia index fell by 6.3% over the period, partly hampered by the 6.0% fall in theBrent crude oil price over the period. Oil prices rose by 5.7% in December after OPEC+ agreed to cut output by anadditional 0.5 million (“mn”) barrels/day to 1.7 mn. However, this was outweighed by the expected demand destructionfrom the coronavirus outbreak, which pushed Brent crude down by 11.9% in January.

EWF PortfolioTop Ten Holdings as at 31 January 2020

Total Net Assets %01 Templeton Emerging Markets Investment Trust Plc 9.602 Genesis Emerging Markets Fund Ltd 7.203 JPMorgan Indian Investment Trust Plc 5.804 Templeton Dragon Fund Inc. 4.205 JPMorgan Russian Securities Plc 4.006 JPMorgan Emerging Markets Investment Trust Plc 3.807 Taiwan Fund Inc. 3.008 Fidelity China Special Situations Plc 3.009 Asia Dragon Trust Plc 2.810 Naspers Ltd. 2.7

46.1

Theis is provided for information purposes only and should not be construed as investment advice to buy or sell any securities.Source: City of London Investment Management Company Limited


Investment Manager’s Report (continued)

EWF Performance

During the twelve-month period under review, the price of EWF (the “Fund”) rose 6.95%, net of fees, whilst the Fund’sbenchmark, the dollar-adjusted S&P Emerging Frontier Super Composite Net Total Return Broad Market Index (“S&PSuper BMI”) rose 4.48% and the dollar-adjusted MSCI Emerging Markets Net Total Return Index (“MSCI EM”) Indexrose 3.81%. The NAV performances of the Fund’s underlying holdings, country allocation versus the benchmark index,and currency movements were favourable, whilst discount movements* were unfavourable. During the six-month periodsince the last interim report, the price of the Fund rose 4.04%, net of fees, whilst its benchmark rose 3.30% and the MSCIEM Index rose 3.36%. Please note attribution is shown gross of fees, whilst performance is shown net of fees.

Net returns are based on an investment management fee of 1% per annum.*Discount movements reflect the value added from the changes in discount levels of the Fund’s underlying holdings.

Performances in U.S. Dollar (US$) for all periods ended 31 January 2020 (net)

EWF Price S&P Super BMI MSCI EM Index6 Months +4.04% +3.30% +3.36%12 Months +6.95% +4.48% +3.81%Since Inception* +809.53% +653.19% +599.89%

These figures are net returns and are based on an investment management fee of 1% per annum. *15 September 1998Past performance is no guarantee of future results.Source: City of London Investment Management Company Limited, S&P, Bloomberg, MSCI

EWF Attribution Chart from 1 February 2019 to 31 January 2020 (gross)

The above attribution has been rounded and is presented as gross of total expenses.Performance for the Quarter and Rolling 12 Months are compounded and therefore will not always equal the sum of the individual component months.Discounts are calculated using estimated NAVs by City of London Investment Management Company Limited.Past performance is no guarantee of future results.Source: City of London Investment Management Company Limited, S&P



EWF Performance (net) compared to the S&P Super Composite Net Total Return BMI and MSCI EM Index (US$)*Since inception (rebased from inception, where 15 September 1998=100)

Source: BNY Mellon, S&P, MSCI*The benchmark was changed from the S&P Emerging BMI Plus on January 1, 2009 to better reflect the investment strategy of the Fund. The S&P EmergingBMI Plus was the successor index to the S&P/IFC Global Composite Index, the benchmark for the Fund prior to September 1, 2008, which has been discontinued.Benchmark changes have not been applied retroactively and therefore historical benchmark performance is a blend of the BMI and IFC indices. The MSCI EmergingMarkets Net Total Return Index (MSCI EM Index) is shown for comparative purposes. Past performance is no guarantee of future results.

These returns are net of total expenses of which 1% is the investment management fee.

EWF Investment OutlookFears about the spread of COVID-19 dominated global market sentiment in the first few months of 2020. Cumulativeglobal cases surged from 27 at end of 2019 to 858,355 at the end of Q1 2020, rising more than tenfold in March alone.Both developed (MSCI World index) and EM equities declined as much as 32% at one point in March. However, afternumerous significant policy responses aimed at softening the impact of COVID-19 on economic activity and sentiment,both indices recovered some of these losses. Policy measures included a cumulative 150bps of emergency cuts in the Fedfunds rate and a commitment to unlimited quantitative easing, as well as fiscal stimulus equivalent to 10% of US GDP.Monetary easing was mirrored by other developed and emerging economies, with many in the latter engaging inquantitative easing for the first time in their history. Fiscal stimulus packages were also announced to support businessesand consumers amid lockdowns and other restrictions globally. A further support for economic activity may eventuallycome from the collapse in oil prices. Brent crude oil declined by 55% in March and fell below $25/barrel for the first timesince 2003. This was due to both the demand shock from COVID-19 and a supply shock. OPEC+ output cuts were notextended and Saudi Arabia declared a price war, with the Kingdom raising output in an attempt to gain market share.

EWF Price

S&P Super BMI

MSCI EM Index

15.9

.98

31.1

.99

31.7

.99

31.1

.00

31.7

.00

31.1

.01

31.7

.01

31.1

.02

31.7

.02

31.1

.03

31.7

.03

31.1

.04

31.7

.04

31.1

.05

31.7

.05

31.1

.06

31.7

.06

31.1

.07

31.7

.07

31.1

.08

31.7

.08

31.1

.09

31.7

.09

31.1

.10

31.7

.10

31.1

.11

31.7

.11

31.1

.12

31.7

.12

31.1

.13

31.7

.13

31.1

.14

31.7

.14

31.1

.15

31.7

.15

31.1

.16

31.7

.16

31.1

.17

31.7

.17

31.1

.18

31.7

.18

31.1

.19

31.7

.19

31.1

.20



EWF Investment Outlook (continued)Consensus projects a sharp contraction in global GDP in Q2, with a possible rebound in activity in H2. However, muchwill depend on the spread of the virus, the impact of stimulus measures and how and when countries move towardsremoving restrictions. There are numerous downside risks to a global recovery including ineffective policies that may notprevent bankruptcies and redundancies, as well as the risk of a second wave of infections as restrictions are lifted. Onepositive is that EM countries such as China and South Korea have led the way in containing the virus. These markets maysuffer from a collapse in external demand, but should benefit from a lifting of domestic restrictions that will enablecompanies and workers to resume production. The two countries together make up 53% of the MSCI EM index and anearly recovery in both could help support the asset class. Moreover, relative valuations are more attractive than a year ago.The forward price to earnings ratio (P/E) of the MSCI EM Index at end-March was at a 25% discount to that of DM, 5%points down from 12 months earlier. This comes amid significant adjustments to 2020 earnings growth projections, fallingfrom 20% yoy at the start of 2020 to 2% at end of March.

Whilst the outlook is highly uncertain, the significant global economic stimulus in response to the pandemic has been un-precedented. This should support a recovery in global growth in 2021 assuming the virus spread is contained.

Aside from the legislative election in South Korea in April, there are no major elections within EM in 2020. Politics arethus likely to take a back seat to economic considerations this year. Hence, if EM can meet growth estimates in 2020 of4.4%, up marginally from an estimated 4.3% in 2019, this should be positive for EM equity returns. Moreover, relativevaluations are more attractive than a year ago. The trailing P/E of the MSCI EM Index at end-January was at a 27.6%discount to that of DM, 3.0% points down from 12 months earlier and below the five-year average of 26.6%.

City of London Investment Management Company LimitedMarch 2020


Depositary’s Report for the year ended 31 January 2020

Report from the Depositary to the Shareholders dated 31 January 2020For the period from 1 February 2019 to 31 January 2020 (the “Period”)

The Bank of New York Mellon SA/NV, Dublin Branch (the “Depositary” “us”, “we”, or “our”), has enquired into the conductof The World Markets Umbrella Fund plc (the “Company”) for the Period, in its capacity as depositary to the Company.

This report including the opinion has been prepared for and solely for the shareholders in the Company, in accordancewith our role as depositary to the Company and for no other purpose. We do not, in giving this opinion, accept or assumeresponsibility for any other purpose or to any other person to whom this report is shown.

Responsibilities of the DepositaryOur duties and responsibilities are outlined in Regulation 34 of the European Communities (Undertakings for CollectiveInvestment in Transferable Securities) Regulations 2011 (S.I. No 352 of 2011), as amended (the “Regulations”).

Our report shall state whether, in our opinion, the Company has been managed in that period in accordance with theprovisions of the Company’s constitutional documentation and the Regulations. It is the overall responsibility of theCompany to comply with these provisions. If the Company has not been so managed, we as depositary must state in whatrespects it has not been so managed and the steps which we have taken in respect thereof.

Basis of Depositary OpinionThe Depositary conducts such reviews as it, in its reasonable opinion, considers necessary in order to comply with its dutiesand to ensure that, in all material respects, the Company has been managed (i) in accordance with the limitations imposed onits investment and borrowing powers by the provisions of its constitutional documentation and the appropriate regulationsand (ii) otherwise in accordance with the Company’s constitutional documentation and the appropriate regulations.

OpinionIn our opinion, the Company has been managed during the Period, in all material respects:

(i) in accordance with the limitations imposed on the investment and borrowing powers of the Company by theconstitutional documentation and by the Regulations; and

(ii) otherwise in accordance with the provisions of the constitutional documentation and the Regulations.

David KellyFor and on behalf of The Bank of New York Mellon SA/NV, Dublin Branch,Riverside 2,Sir John Rogerson’s Quay,Grand Canal Dock,Dublin 2,Ireland

Dated 19 May 2020


Independent Auditor’s Report to the Members of The World Market Umbrella Fund plc

Report on the audit of the financial statementsOpinionWe have audited the financial statements of The World Markets Umbrella Fund plc (“the Company”) for the year ended31 January 2020, which comprise the Statement of Financial Position, Statement of Comprehensive Income, Statementof Changes in Net Assets Attributable to Holders of Redeemable Participating Shares, Statement of Cash Flow, PortfolioStatement and related notes, including the summary of significant accounting policies set out Note 2. The financial reportingframework that has been applied in their preparation is Irish law and International Financial Reporting Standards (IFRS)as adopted by the European Union.

In our opinion, the financial statements: • give a true and fair view of the assets, liabilities and financial position of the Company as at 31 January 2020 and of its

increase in net assets attributable to holders of redeemable participating shares from operations for the year then ended;• have been properly prepared in accordance with IFRS as adopted by the European Union; and• have been properly prepared in accordance with the requirements of the Companies Act 2014, the European Communities

(Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended and the CentralBank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2019.

Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (Ireland) (ISAs (Ireland)) and applicablelaw. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company in accordance with ethical requirementsthat are relevant to our audit of financial statements in Ireland, including the Ethical Standard issued by the Irish Auditingand Accounting Supervisory Authority (IAASA), and we have fulfilled our other ethical responsibilities in accordance withthese requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

We have nothing to report on going concernWe are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriateor there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for a period of atleast twelve months from the date of approval of the financial statements. We have nothing to report in these respects.

Other informationThe Directors are responsible for the other information presented in the Annual Report together with the financial statements.The other information comprises the information included in the Annual Report other than the financial statements and ourauditor’s report thereon. Our opinion on the financial statements does not cover the other information and, accordingly, wedo not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statementsaudit work, the information therein is materially misstated or inconsistent with the financial statements or our auditknowledge. Based solely on that work we have not identified material misstatements in the other information.

Based solely on our work on the other information, we report that:• we have not identified material misstatements in the directors’ report;• in our opinion, the information given in the directors’ report is consistent with the financial statements; and• in our opinion, the directors’ report has been prepared in accordance with the Companies Act 2014.

Opinion on other matter prescribed by the Companies Act 2014We have obtained all the information and explanations which we consider necessary for the purposes of our audit.

In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily andproperly audited and the financial statements are in agreement with the accounting records.

Matters on which we are required to report by exceptionThe Companies Act 2014 requires us to report to you if, in our opinion, the disclosures of directors’ remuneration andtransactions required by sections 305 to 312 of the Act are not made. We have nothing to report in this regard.


Independent Auditor’s Report to the Members of The World Market Umbrella Fund plc (continued)

Respective responsibilities and restrictions on useResponsibilities of directors for the financial statementsAs explained more fully in the directors’ responsibilities statement set out on page 2, the directors are responsible for: thepreparation of the financial statements including being satisfied that they give a true and fair view; such internal control asthey determine is necessary to enable the preparation of financial statements that are free from material misstatement,whether due to fraud or error; assessing the Company’s ability to continue as a going concern, disclosing, as applicable,matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidatethe Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materialmisstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will alwaysdetect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken onthe basis of these financial statements.

A fuller description of our responsibilities is provided on IAASA’s website at https://www.iaasa.ie/getmedia/b23890131cf6458b-9b8f-a98202dc9c3a/Description_of_auditors_responsibilities_for_audit.pdf.

The purpose of our audit work and to whom we owe our responsibilitiesOur report is made solely to the Company’s members, as a body, in accordance with section 391 of the Companies Act2014. Our audit work has been undertaken so that we might state to the Company’s members those matters we are requiredto state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not acceptor assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work,for this report, or for the opinions we have formed.

Karen Conboyfor and on behalf ofKPMG Chartered Accountants85 South Mall CorkIreland

19 May 2020


Statement of Financial Position

EWF EWFAs at 31 January 2020 As at 31 January 2019

Notes US$ US$AssetsDeposits with credit institutions 3 2,702,732 3,969,867Receivables 4 251,088 1,138,083

2,953,820 5,107,950

Financial assets at fair value through profit or loss- Transferable securities 2, 14 125,907,477 121,282,874

125,907,477 121,282,874

Total Assets 128,861,297 126,390,824

LiabilitiesPayables (due within one year) 5 (737,792) (1,341,467)Total liabilities (737,792) (1,341,467)

Net assets attributable to holders ofredeemable participating shares 128,123,505 125,049,357

The accompanying notes form an integral part of the financial statements.

The financial statements were approved by the Board of Directors of the Company on 19 May 2020, and signed on itsbehalf by:

Director: Kevin Molony

Director: Patricia Taylor

19 May 2020


Statement of Comprehensive Income

EWF EWFFor the financial For the financial

year ended year ended31 January 2020 31 January 2019

Notes US$ US$IncomeBank interest income 15,061 7,818Dividend income 2,844,287 3,724,635Net gains/(losses) on financial assetsat fair value through profit or loss 6 7,643,166 (29,191,111)Net investment income/(expense) 10,502,514 (25,458,658)

ExpensesInvestment management fees 7 1,338,007 1,533,287Administration fees 8 166,949 165,023Depositary fees 9 69,344 90,955Directors’ fees 17 45,567 45,567Audit fees 10 31,390 31,390Miscellaneous expenses 11 275,643 256,780Total expenses 1,926,900 2,123,002

Net profit/(loss) before taxation 8,575,614 (27,581,660)

Withholding taxes rebated/(charged) on dividends 51,522 (514,141)

Increase/(decrease) in net assets attributable toholders of redeemable participating shares from operations 8,627,136 (28,095,801)

All amounts above relate to continuing operations.



Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares



US$ US$Net assets attributable to holders of redeemableparticipating shares at start of financial year 125,049,357 181,774,383

Proceeds from issuance of shares 2,120,458 245,113Cost of shares redeemed (7,673,446) (28,874,338)

Increase/(decrease) in net assets attributable to holdersof redeemable participating shares from operations 8,627,136 (28,095,801)

Net assets attributable to holders of redeemableparticipating shares at end of financial year 128,123,505 125,049,357



Statement of Cash Flow



US$ US$Cash flows from operating activitiesIncrease/(decrease) in net assets attributable to holdersof redeemable participating shares from operations 8,627,136 (28,095,801)Dividend income* (2,859,348) (3,732,453)Withholding taxes (51,522) 514,141

5,716,266 (31,314,113)

Decrease in other receivable and accrued income - 21,318Decrease/(increase) in receivable for investments sold 827,040 (542,903)(Decrease)/increase in payable for investments purchased (708,761) 164,251Increase/(decrease) in other payables and accrued expenses 105,086 (30,661)(Increase)/decrease in financial assets at fair value through profit or loss (4,624,603) 58,226,108Cash from operations 1,315,028 26,524,000Dividend income received* 2,970,825 3,226,530Net cash from operating activities 4,285,853 29,750,530

Cash flows from financing activitiesProceeds from redeemable shares issued 2,120,458 250,986Redemption of redeemable shares (7,673,446) (28,874,338)Net cash used in financing activities (5,552,988) (28,623,352)

Net (decrease)/increase in cash and cash equivalents (1,267,135) 1,127,178Cash and cash equivalents at beginning of financial year 3,969,867 2,842,689

Cash and cash equivalents at end of financial year 2,702,732 3,969,867


*Dividend income is made up of both dividends and interest however the interest amount earned/received is the minimum and so was not presented separately.


Notes forming part of the Financial Statements

1. General InformationThe World Emerging Markets Umbrella Fund plc was incorporated on 6 August 1998 as an open-ended investmentcompany with variable capital and limited liability under the laws of the Republic of Ireland under registration number291789. Effective 27 November 2006, the Company changed its name to “The World Markets Umbrella Fund plc”(the “Company”). The Company qualifies and is authorised by the Central Bank of Ireland (the “Central Bank”) as anUndertaking for Collective Investment in Transferable Securities (“UCITS”) for the purposes of the European Communities(Undertakings for Collective Investments in Transferable Securities) Regulations 2011, as amended (the “UCITSRegulations”) and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for CollectiveInvestment in Transferable Securities) Regulations 2019 (the “Central Bank UCITS Regulations”).

Details of the Company’s fund (the “Sub-Fund”) is as follows:Commencement date

The Emerging World Fund (“EWF”) or (the “Fund”) 15 September 1998

Investment ObjectiveThe investment objective of EWF is to provide a vehicle through which investors may place their capital in a variety ofemerging markets throughout the world to achieve long term capital growth whilst retaining the ability to switch theircapital to particular regions and countries, as well as be invested in a global fund.

Prospectus and SupplementThe Company’s prospectus and EWF supplement (the “Prospectus Documents”) are dated 30 September 2019, respectively.Copies of the Prospectus Documents can be obtained from BNY Mellon Fund Services (Ireland) Designated ActivityCompany (the “Administrator”).

2. Principal Accounting Policies Basis of PreparationThe annual financial statements have been prepared in accordance with International Financial Reporting Standards(“IFRS”) as adopted by the European Union (“EU”) and Irish statute comprising the Companies Act 2014, the UCITSRegulations and the Central Bank UCITS Regulations.

The financial statements have been prepared on a historical cost basis except for financial assets and financial liabilities heldat fair value through profit or loss, that have been measured at fair value. All references to net assets throughout the financialstatements refer to net assets attributable to holders of redeemable participating shares unless otherwise stated.

The format of the Statement of Financial Position and the Statement of Comprehensive Income has been amended fromthose set out in the Companies Act 2014 to reflect the nature of the Company’s operations.

The Directors have made an assessment of the Company’s ability to continue as a going concern and are satisfied that theCompany has the resources to continue in business for the foreseeable future. Furthermore, the Directors are not aware ofany material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern.Therefore, the financial statements continue to be prepared on the going concern basis.

Financial Assets at Fair Value through Profit or Loss(i) Classification and initial recognition

On initial recognition, a financial asset is classified as measured at: amortised cost, fair value through othercomprehensive income (“FVOCI”), and fair value through profit or loss (“FVTPL”).

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated at FVTPL:• The asset is held within a business model whose objective is to hold assets and collect contractual cash flows; and• The contractual cash terms of the financial asset give rise on specified dates to cash flows that are solely payments of

principal and interest on the principal amount outstanding.

A financial asset is measured at FVOCI only if it meets both of the following conditions and is not designated as at FVTPL:• The asset is held within a business model whose objective is achieved by both collecting contractual cash flows and

selling financial assets; and• The contractual cash terms of the financial asset give rise on specified dates to cash flows that are solely payments of

principal and interest on the principal amount outstanding.


Notes forming part of the Financial Statements (continued)

2. Principal Accounting Policies (continued)Basis of Preparation (continued)Financial Assets at Fair Value through Profit or Loss (continued)(i) Classification and initial recognition (continued)

All other financial assets are classified as measured at FVTPL.

The Company classifies its investments based on both the Company’s business model for managing those financialassets and the contractual cash flow characteristics of the financial assets. The determination of the objective of thebusiness model applicable to financial assets is based on the relevant information on how the business is managed,such as the Fund’s documented investment strategy, the evaluation of the Fund’s performance, risk management andthe level of portfolio turnover within the Fund.

The Company has classified its financial assets and financial liabilities into the following categories:

Financial assets at fair value through profit or lossInvestment in investment funds - these financial assets are managed and their performance is evaluated, on a fair valuebasis, with frequent sales taking place.

Financial assets at amortised costDeposits with credit institutions and receivables, which are held to collect contractual cash flows. These financialassets are recognised initially at fair value and subsequently measured at amortised cost using effective interest rate,less any impairment provision.

Financial liabilities at amortised costPayables due within one year.

(ii) RecognitionThe Company recognises financial assets and financial liabilities when all significant rights and access to the benefitsfrom the assets and the exposure to the risks inherent in those benefits are transferred to the Company.

Financial assets and financial liabilities at FVTPL are recognised initially on the trade date, which is the date the Fundbecomes a party to the contractual provisions of the instrument. Other financial assets and financial liabilities arerecognised on the date they are originated. Financial assets and financial liabilities at FVTPL are recognised initiallyat fair value, with transaction cost recognised in the Statement of Comprehensive Income. Financial assets or financial liabilities not at FVTPL are recognised at fair value plus transaction costs that are directly attributable to theiracquisition or issue.

(iii) MeasurementThe fair value of financial instruments traded in active markets is based on quoted valuation at the Statement ofFinancial Position date. The quoted market price used for financial assets held by the Company is the closingmid-market price or the last traded price when no closing mid-market price is available. Gains and losses arising fromchanges in the fair value of the FVTPL category are included in the Statement of Comprehensive Income in thefinancial year in which they arise. Stocks in liquidation and those securities which are not priced using quoted valuation are valued in strict accordance with internal fair value procedures which require documentary verification of the basisof valuation, as well as independent review, adherence to which is checked regularly by the Compliance Departmentof the Investment Manager.

(iv) ImpairmentThe Company recognises loss allowances for Expected Credit Losses ("ECLs") on financial assets measured atamortised cost. A financial asset or a group of financial assets is “impaired” if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset(s) and the loss event(s) had animpact on the estimated future cash flows of the asset(s) than can be estimated reliably.

Objective evidence that financial assets are impaired includes significant financial difficulty of the borrower or issuer,default or delinquency by a borrower, restructuring of the amount due on terms that the Company would nototherwise consider, indication that a borrower or issuer will enter bankruptcy, or adverse changes in the paymentstatus of the borrowers.

At each reporting date, the Company shall measure the loss allowance on financial assets measured at amortised costat an amount equal to the lifetime expected credit losses if the credit risk has increased significantly since initialrecognition. If, at the reporting date, the credit risk has not increased significantly since initial recognition, theCompany shall measure the loss allowance at an amount equal to 12-month expected credit losses.



2. Principal Accounting Policies (continued)Basis of Preparation (continued)Financial Assets at Fair Value through Profit or Loss (continued)(iv) Impairment (continued)

The Company measures credit risk and expected credit loss on financial assets measured at amortised costusing probability of default, exposure at default and loss given default. Management considers both historical analysis and forward looking information in determining any expected credit loss. Significant financial difficulties of adebtor/counterparty, probability that a debtor/counterparty will enter bankruptcy or financial reorganisation, anddefault payments are all considered indicators that a loss allowance may be required.

If the credit risk increases to the point that it is considered to be credit impaired, interest will be calculated based onthe gross carrying amount adjusted for the loss allowance.

Impairment losses are recognised in the Statement of Comprehensive Income and reflected in an allowance accountagainst receivables. Interest on the impaired asset continues to be recognised. If an event occurring after theimpairment was recognised causing the amount of impairment loss to decrease, then the decrease in impairment lossis reversed through the Statement of Comprehensive Income.

The Company has financial assets measured at amortised cost which include deposits with credit institutions andreceivables. These are deemed to have a low credit risk at the reporting date, based on an assessment of quantitativeand qualitative information and historic analysis of payment patterns. Hence, the Company has determined that norecognition is required in these financial statements for twelve month or lifetime expected credit losses.

(v) De-recognitionThe Company de-recognises a financial asset when the contractual rights to the cash flows from the asset expire, orit transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks andrewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retainssubstantially all of the risks and rewards of the ownership and does not retain control of the financial asset.

On de-recognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amountallocated to the portion of the asset that is de-recognised) and the consideration received (including any new assetobtained less any new liability assumed) is recognised in the Statement of Comprehensive Income. Any interest insuch transferred financial assets that is created or retained by the Company is recognised as a separate asset or liability. The Company de-recognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

(vi) Offsetting Financial InstrumentsFinancial assets and financial liabilities are offset and the net amount presented in the Statement of Financial Positionwhen, and only when, the Company has the legal right to offset the amounts and it intends either to settle on the netbasis or to realise the asset and settle the liability simultaneously.

Income and expenses are presented on a net basis for gains and losses from financial instruments at FVTPL andforeign exchange gains and losses.

(vii) Specific Instruments(a) Deposits with Credit Institutions

Deposits with credit institutions comprise cash in hand and deposits repayable on demand with any qualifying financial institution. These deposits are considered repayable on demand if they can be withdrawn at any time without noticeand without penalty or if a maturity or period of notice of not more than twenty four hours has been agreed.

(b) Financial Derivative Instruments (“FDI”)The Company may, where permitted, on behalf of the Fund and subject to the conditions and within the limits laiddown by the Central Bank and the Prospectus, employ techniques and instruments relating to transferable securities,including investments in FDI. Such techniques and instruments may be used for efficient portfolio managementpurposes, or to provide protection against exchange risk or for direct investment purposes, where applicable. Suchtechniques and instruments may include, but are not limited to, futures, forwards, options, swaps, swaptions,subscription shares and warrants; such investments are valued at FVTPL.

(c) Investment FundsThe fair value of any investment which is a share of, unit of or participation in an open-ended investment fund shallbe the latest available net asset value for the investment as published by the investment fund in question or, wheresuch investment is quoted, listed or dealt in on a regulated market, may be a value determined in accordance with theprovisions of the articles of association.



2. Principal Accounting Policies (continued)Basis of Preparation (continued)IncomeDividend income is recognised in the Statement of Comprehensive Income on the date on which the right to receivepayment is established. For quoted transferable securities, this is usually the ex-dividend date. For unquoted transferablesecurities, this is usually the date on which the shareholders approve the payment of a dividend. Dividend income fromfinancial assets at FVTPL is recognised in the Statement of Comprehensive Income in a separate line item.

Bank interest income and expense are recognised as earned/as incurred by the Fund.

TaxationThe Fund incurs withholding taxes imposed by certain countries on investments income. Withholding taxes are recognisedon the ex-dividend date, for quoted transferable securities and are disclosed under “withholding taxes (charged)/rebated ondividends” in the Statement of Comprehensive Income and net of any tax credits, if applicable. As at the financial year enddate, withholding taxes payable are disclosed within “Sundry payables” as described in Note 5 of the financial statements.

Foreign CurrenciesThe functional currency is the currency of the primary economic environment in which the Fund operates. If indicators ofthe primary economic environment are mixed, then management uses its judgement to determine the functional currencythat most faithfully represents the economic effect of the underlying transactions, events and conditions. The majority ofthe Fund’s investments and transactions are denominated in U.S. Dollar. Investor subscriptions and redemptions aredetermined based on net asset value, and received and paid in U.S. Dollar. The expenses (including investment managementfees, depositary fees and administration fees) are denominated and paid in U.S. Dollar. Accordingly, the Investment Managerhas determined that the functional currency is U.S. Dollar (“US$”).

Transactions in foreign currencies, if any, are translated at the foreign currency exchange rate ruling at the date of the trans-action. Monetary assets and liabilities denominated in foreign currencies, if any, are translated into the functional currencyat the foreign currency closing exchange rate ruling at the Statement of Financial Position date.

Foreign currency exchange differences arising on translation and realised gains and losses on disposals or settlements ofmonetary assets and liabilities, if any, are recognised in the Statement of Comprehensive Income. Non-monetary assetsand liabilities denominated in foreign currencies that are measured at fair value are retranslated into the functional currencyat the foreign currency exchange rates ruling at the dates that the values were determined. Any foreign currency exchangedifferences are included in net gains/(losses) on financial assets at fair value through profit or loss in the Statement ofComprehensive Income.

Segmental ReportingA business segment is a group of assets and operations engaged in providing products or services that are subject to riskand returns that are different to those of other business segments.

The Company's segments are based on the nature of the products provided and are considered to be the Fund.

Realised and Unrealised Gains and Losses on InvestmentsNet gains or losses from financial instruments at FVTPL includes all realised and unrealised fair value changes and foreignexchange differences, but excludes interest and dividend income. Realised gains or losses on disposal of investments atFVTPL and unrealised gains and losses on valuation of investments at FVTPL at the financial year end are calculated onan average cost basis and included in the Statement of Comprehensive Income.

Operating ExpensesExpenses are accounted for in the Statement of Comprehensive Income on an accruals basis.

DistributionsThe Fund will aim to seek capital growth rather than a significant income return and does not guarantee to distribute toshareholders any income that it may receive on its investments.

Use of judgements and estimatesIn preparing these financial statements, judgements, estimates and assumptions have been made that affect the application ofaccounting policies and the reported amounts of assets, liabilities, income and expenses. The Directors believe that the estimatesutilised in preparing the financial statements are reasonable and prudent. Actual results may differ from these estimates.



2. Principal Accounting Policies (continued)Basis of Preparation (continued)Use of judgements and estimates (continued)Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

Involvement with unconsolidated structured entitiesThe Company may invest in investment funds, which are not subject to consolidation, however meet the definition of astructured entity because:• the voting rights in the investment fund are not the dominant condition in deciding who controls it because they

relate to administrative tasks only;• the investment fund’s activities are restricted by its prospectus; and• the investment fund has narrow and well-defined objectives to provide investment opportunities to investors.

Transaction costsTransaction costs are defined as the incremental costs that are directly attributable to the acquisition, issue or disposal of afinancial asset or financial liability. An incremental cost is one that would not have been incurred if the entity had notacquired, issued or disposed of the financial instrument. When a financial asset or financial liability is recognised initially,an entity shall measure it at its FVTPL plus transaction costs that are directly attributable to the acquisition or issue of thefinancial asset or financial liability.

Transaction costs on purchases and sales of investments are included in net gains/(losses) on financial assets at fair valuethrough profit or loss in the Statement of Comprehensive Income for the Fund.

Redeemable Participating SharesRedeemable participating shares are redeemable at the holder’s option and are classified as financial liabilities. Theparticipating share can be repurchased by the Company at any time for cash equal to a proportionate share in the Fund’snet asset value. The participating share is carried at the redemption amount that is payable at the Statement of FinancialPosition date if the shareholder exercised its right to sell the share back to the Company.

New Accounting Standards IssuedAt the date of approval of these financial statements, the following standards, amendments and interpretations to were in issue:

IFRIC 23 Uncertainty over Income Tax TreatmentsIFRIC 23 was published in June 2017 and became effective for annual periods beginning on or after 1 January 2019. Itaddresses the accounting for income taxes when tax treatments involve uncertainty. It specifically addresses the following:• Whether an entity considers uncertain tax treatments separately;• The assumptions an entity makes about the examination of tax treatments by taxation authorities;• How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates; and• How an entity considers changes in facts and circumstances.

The adoption of IFRIC 23 did not have a significant impact on the Company’s financial statements.

Amendments to IFRS 9: Prepayment Features with Negative CompensationThe amendments made to IFRS 9 “Financial Instruments” in December 2017 which are effective for annual periodsbeginning on or after 1 January 2019 with early adoption permitted; enable entities to measure certain pre-payable financialassets with negative compensation at amortised cost.

These assets, which include some loan and debt securities, would otherwise have to be measured at fair value throughprofit or loss. To qualify for amortised cost measurement, the negative compensation must be ‘reasonable compensationfor early termination of the contract’ and the asset must be held within a ‘held to collect’ business model.

The adoption of the amendments to IFRS 9 did not have a significant impact on the Company’s financial statements.

There are no other standards, amendments to standards or interpretations that are effective for annual period beginningon 1 February 2019 that have a material effect on the Company’s financial statements.



3. Deposits with Credit Institutions Cash held by the Company is deposited with The Bank of New York Mellon SA/NV, Dublin Branch (the “Depositary”).The credit rating of the Depositary, as assessed by Moody’s, is Aa2 (31 January 2019: Aa2).

The Company has adopted the Fund Assets Model under the Central Bank (Supervision and Enforcement) Act 2013(Section 48(1)) Client Asset Regulations 2015 for Investments Firms. Accordingly, subscription and redemption moniesare channelled through an umbrella cash collection account in the name of the Company.

The balances on these cash accounts as at 31 January 2020 and 31 January 2019 are deemed immaterial in respect of theFund. Hence, no adjustments were applied in the financial statements.

4. ReceivablesEWF EWF

31 January 2020 31 January 2019Amounts falling due within one year: US$ US$ Receivable for investments sold - 827,040 Dividends and interest receivable 251,088 311,043

251,088 1,138,083

5. PayablesEWF EWF

31 January 2020 31 January 2019Amounts falling due within one year: US$ US$ Payable for investments purchased 306,328 1,015,089Investment management fee payable 119,977 108,089 Sundry payables 311,487 218,289

737,792 1,341,467

6. Net Gains/(Losses) on Financial Assets at Fair Value Through Profit or LossEWF EWF

31 January 2020 31 January 2019US$ US$

Net gains/(losses) on financial assets at fair value through profit or loss 7,584,599 (29,180,160)Net gains/(losses) on foreign exchange contracts 58,567 (10,951)

7,643,166 (29,191,111)

7. Investment Management Fees The Investment Manager is entitled to a charge based on the net asset value of each share class as follows:

- 1.00% per annum of the net asset value of each Institutional share class - 1.50% per annum of the net asset value of each Retail A share class- 2.25% per annum of the net asset value of each Retail B share class

The fee is accrued daily based on the daily net asset value of each share class of the Fund and is payable monthly in arrears. Theinvestment management fees incurred during the financial year are disclosed in the Statement of Comprehensive Income andthe investment management fees payable at the end of the financial year are disclosed in Note 5 of the financial statements.

8. Administration FeesThe Administrator is entitled to an ad valorem charge at an annual rate of 0.075% of the net asset value of the Fund;a share class charge of US$3,500 per annum; a transfer agency charge of US$32 per transaction; and a shareholder servicingcharge of US$22 per shareholder account. Where all charges aggregate to an amount below the minimum monthlythreshold of US$12,500 for the Fund, the Administrator shall charge the minimum fee accordingly. Additionally, theAdministrator shall be entitled to reimbursement of periodic out of pocket expenses. Fees charged by the Administratorfor the financial year are shown in “Administration fees” in the Statement of Comprehensive Income and the amounts dueat the financial year end are included in “Sundry payables” in Note 5 of the financial statements.



9. Depositary FeesThe Depositary is entitled to charge an annual fee equal to 0.0345% of the net asset value of the Fund, subject to a minimumcharge of US$11,500 per annum. Such fees shall be payable monthly in arrears. The Depositary shall also be entitled tocharge transaction and safekeeping fees at agreed rates. The Depositary shall also be entitled to be reimbursed for its outof pocket expenses and those of any sub-custodian. Fees charged by the Depositary for the financial year are shown in“Depositary fees” in the Statement of Comprehensive Income and the amounts due at the financial year end are includedin “Sundry payables” in Note 5 of the financial statements.

10. Auditor’s Remuneration The auditor’s remuneration comprises audit fees (inclusive of Value-Added Tax (“VAT”)) as noted in the Statement ofComprehensive Income and tax advisory fees, which are disclosed within miscellaneous expenses in the Statement ofComprehensive Income (further details of which are included in Note 11 of the financial statements). There are no costsincurred in relation to other assurance or other non-audit services, other than those set out below. The auditor’sremuneration excluding VAT comprises the following:

31 January 2020 31 January 2019US$ US$

Audit fees 24,170 25,520Tax advisory fees 13,398 14,147

37,568 39,667

11. Miscellaneous ExpensesThe miscellaneous expenses in the Statement of Comprehensive Income comprise the following:

EWF EWF31 January 2020 31 January 2019

US$ US$Legal fees 140,504 190,648 Printing fees 6,625 6,624 Tax advisory fees 17,400 17,401 Bank charges 1,299 1,300 Regulatory levies 10,373 10,374 Mailing and fulfilment service fees 8,132 8,132 Directors' insurance 13,965 13,965 Paying agent fees 27,839 27,839 Company secretarial fees 20,710 20,710 VAT reclaim (22,814) (44,118)Other fund expenses 51,610 3,905

275,643 256,780

12. Transaction CostsDuring the financial year, the Fund incurred transaction costs related to the buying and selling of securities, which havebeen included in “Net gains on financial assets at fair value through profit or loss” in the Statement of ComprehensiveIncome. The transaction costs for the financial year ended 31 January 2020 is US$104,984 (31 January 2019: US$99,548).

13. DistributionsThere were no distributions made during the financial year ended 31 January 2020 (31 January 2019: Nil).

14. Financial Instruments and Associated RisksCompany RiskThe prospectus sets out a comprehensive disclosure of the risks that the Company faces and readers of these financialstatements should therefore refer to the prospectus to ensure they have a full understanding of these risks.

Global ExposureDerivatives were not held by the Fund at any time during the financial year ended 31 January 2020 (31 January 2019:None). Had derivatives been held by the Fund, the relevant global exposures would be calculated using the commitmentapproach as the total of the Fund’s net position exposures.

The main risks arising from the Fund’s financial instruments are market price, concentration, liquidity, interest rate, creditand currency risk.



14. Financial Instruments and Associated Risks (continued)Market Price RiskMarket price risk is the risk that the value of the instrument will fluctuate as a result of changes in market prices (otherthan those arising from interest rate risk or currency risk), whether caused by factors specific to an individual investment,its issuer or all factors affecting all instruments traded in the market. As at 31 January 2020 and 31 January 2019, the overall market exposures were as follows:

Fair Value 31 January 2020 Fair Value 31 January 2019US$ % of new assets US$ % of new assets

Financial assets at fair value through profit or lossEWF 125,907,477 98.27% 121,282,874 96.99%

Details of the nature of the Company's investment portfolio at the financial year end are disclosed in the Portfolio Statement.

The Investment Manager considers the asset allocation of the portfolio in order to minimise the risk associated withparticular countries whilst continuing to follow the Fund’s investment objective. The Fund’s market price risk is managedthrough diversification of the investment portfolio. The Fund’s overall market positions are monitored on a daily basis bythe Investment Manager.

Sensitivity AnalysisA 10% increase in asset prices at 31 January 2020 would have increased the net assets attributable to holders of redeemableparticipating shares of the Fund by US$12,590,748 (31 January 2019: US$12,128,287); an equal change in the oppositedirection would have decreased the net assets attributable to holders of redeemable participating shares by an equal butopposite amount. In practice, actual trading results may differ from the above sensitivity analysis and these differencescould be material.

Concentration RiskThe Fund invests in transferable securities. The concentration of the Fund’s portfolio in any one security type would subjectthe Fund to a greater degree of risk with respect to defaults on the security.

Concentration risk can be monitored in several ways. The Company primarily monitors geographic concentration and toa lesser extent industry concentration. The Company will take these concentration levels into account when consideringadding new positions to the portfolio whenever possible.

At the financial year end, the Fund’s financial assets are exposed to the following geographic areas:

31 January 2020 31 January 2019Fair Value Fair Value

EWF US$ US$Transferable securities:

Asia 46,069,947 48,435,082 Europe 4,875,277 3,864,685 Global Emerging Markets 34,176,446 35,133,471 Global 617,514 -Hong Kong/China 20,678,430 14,383,192 Latin America 9,309,313 9,213,551 Middle East and Africa 5,115,048 5,213,357 Russia 5,065,502 5,039,536

125,907,477 121,282,874

Liquidity RiskLiquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financialliabilities that are settled by delivering cash or another financial asset. The Company’s constitution provides for the daily creationand cancellation of shares and it is therefore exposed to the liquidity risk of meeting shareholder redemptions at any time.

The Fund’s assets are composed largely of traded liquid securities. The liquidity risks associated with the need to satisfyholders’ requests for redemptions are mitigated by maintaining cash reserves to satisfy usual levels of demand.Approximately 87% (31 January 2019: 84%) of the value of the holdings within the portfolio are listed on the New YorkStock Exchange or London Stock Exchange, 11% (31 January 2019: 13%) are listed on other recognised stock exchangesand 2% (31 January 2019: 3%) is cash. This composition ensures that trading and settlement proficiency is sufficient tomeet the normal pattern of redemption requests. Managers may require lead time to instruct the redemption of units andsale proceeds may have a longer settlement duration than normal market transactions.


Notes forming part of the Financial Statements (continued)The following liabilities have residual contractual maturities of less than one month: payables for investments purchased,investment management fee payable, sundry payables and redeemable participating shares.

14. Financial Instruments and Associated Risks (continued)Interest Rate RiskThe vast majority of the Fund’s financial assets and liabilities are non-interest bearing. As a result, the Fund is not subjectto risk due to fluctuations in the prevailing levels of market interest rates. Any excess cash and cash equivalents are investedat short term market interest rates. On the basis that the Fund is not subject to significant interest rate risk, no interest ratesensitivity analysis has been provided.

Credit RiskCredit risk is the risk that a counterparty to a financial instrument will fail to discharge an obligation or commitment thatit has entered into with the Company, resulting in a financial loss to the Company. The carrying amounts of financial assetsbest represent the maximum credit risk exposure at the Statement of Financial Position date. This relates also to financialassets carried at amortised cost, as they have a short term to maturity.

The expected credit loss on financial assets at amortised cost is de minimis, so no expected credit loss has been recognised.

All transactions in listed securities are settled/paid for upon delivery using approved brokers. The risk of default is consideredminimal as delivery of securities sold is only made once the broker has received payment. Payment is made on a purchase oncethe security has been received by the broker. The trade will fail if either party fails to meet its obligation. The Company hassome exposure to the risk of trading counterparties being unable to perform their duties due to bankruptcy or administrationof those counterparties. The Investment Manager carries out due diligence on all trading counterparties prior to entering intoan agreement to trade as well as regular reviews, in addition to a daily review of exposure to each counterparty.

The majority of the investments and cash of the Company are held by the Depositary. Bankruptcy or insolvency of theDepositary may cause the Company's rights with respect to its investments in securities held by the Depositary to be delayedor limited. The Company's securities are segregated from the assets of either the Depositary or its agents. Thus in the event ofinsolvency or bankruptcy of the Depositary, the Company's assets are segregated from those of the Depositary or its agents.

The Company will, however, be exposed to the credit risk of the Depositary, or any depositary used by the Depositary, inrelation to the Company's cash held by the Depositary. In the event of the insolvency or bankruptcy of the Depositary, theCompany will be treated as a general creditor of the Depositary in relation to cash holdings of the Company. The Companyonly transacts with counterparties that are regulated entities subject to prudential supervision, or with high credit ratingsassigned by international credit-rating agencies. The Directors monitor the credit quality of the Depositary on a quarterlybasis in order to mitigate risk. The Depositary’s long-term deposit rating by Moody’s is Aa2 (31 January 2019: Aa2) as atthe financial year end. The Company minimises concentrations of credit risk by undertaking transactions with a largenumber of counterparties. The Company's credit risk concentration is detailed in the Portfolio Statement.

Credit risk, understood as counterparty risk, is formally evaluated by the Investment Manager. Broker/dealers are selected aftersatisfying the Investment Manager’s due diligence process, and based on their ability to provide best executionaccording to criteria such as; commission, the market impact costs from trade execution and their ability to execute tradeswithin a reasonable time frame according to the type of trade undertaken and the location of execution. Credit analysis is partof the selection criteria. The Investment Manager’s counterparty analysis process includes a Trade Management OversightCommittee (which comprises representatives of the Investment Management, Fund Accounting and Compliance departments),responsible for developing, evaluating and changing (when necessary) its trading practices, commissions, and brokers. Thiscommittee, which meets at least on a semi-annual basis, also analyses total trading costs and execution trends.

Currency RiskThe Fund may invest in financial instruments and enter into transactions denominated in currencies other than its functionalcurrency. Consequently, the Fund is exposed to the risk that the exchange rate of its functional currency relative to otherforeign currencies may change in a manner that has an adverse effect on the value of that portion of the Company’s assetsor liabilities denominated in currencies other than the U.S. Dollar.

The Investment Manager does not hedge the currencies of the underlying securities. As such, changes in price in the cur-rencies of the countries where the investments in which the Company invests are located have an effect on the US$ netasset value of the Company.

Non monetary amounts represent the currency risk of investments held at the financial year end. Monetary amountsrepresent the currency risk of deposits with credit institutions and the unrealised gain or loss on spot foreign exchangecontracts held at the financial year end. The foreign cash balances held at the year end date were GBP 5,671, equivalent toUS$7,476; and ZAR 5, equivalent to US$0. The foreign cash balances held at the prior year end date were GBP 1,852,308,equivalent to US$2,436,619; EUR 6,806 equivalent to US$7,809; and ZAR 35, equivalent to US$3.



14. Financial Instruments and Associated Risks (continued)Currency Risk (continued)The following tables set out the Fund’s total exposure to currency risk, based on the underlying currencies of the investmentsheld at the financial year end by the transferable securities held by the Company. The currency of each transferable securityis reflected in the Schedule of Investments.

Currency Non monetary Monetary TotalUS$ US$ US$

31 January 2020Hong Kong Dollar 23,475,381 - 23,475,381Indian Rupee 16,622,639 - 16,622,639South Korean Won 16,467,313 - 16,467,313Russian Ruble 10,169,949 - 10,169,949Chinese Yuan 9,001,370 - 9,001,370Taiwan Dollar 8,495,221 - 8,495,221Brazilian Real 8,155,651 - 8,155,651Mexican Peso 4,814,889 - 4,814,889Vietnamese Dong 4,539,850 - 4,539,850Thailand Baht 2,460,229 - 2,460,229Others 16,664,739 - 16,664,739

120,867,231 - 120,867,231

Currency Non monetary Monetary TotalUS$ US$ US$

31 January 2019Hong Kong Dollar 20,655,165 - 20,655,165 South Korean Won 19,835,428 - 19,835,428 Indian Rupee 17,887,242 - 17,887,242 Taiwan Dollar 9,757,606 - 9,757,606 Russian Ruble 8,959,845 - 8,959,845 Brazilian Real 8,146,571 - 8,146,571 Mexican Peso 5,890,450 - 5,890,450 Chinese Yuan 5,476,381 - 5,476,381 South African Rand 3,229,826 - 3,229,826 Thailand Baht 2,775,809 - 2,775,809 Others 18,075,985 - 18,075,985

120,690,308 - 120,690,308

Sensitivity analysisAt the financial year end, had the US$ strengthened by 10% in relation to the currencies detailed in the table above andthe underlying currencies associated with the investments, with all other variables held constant, net assets attributable toholders of redeemable participating shares and the change in net assets attributable to holders of redeemable participatingshares per the Statement of Comprehensive Income, would have decreased by the amounts shown below.

Significant Currencies 31 January 2020 Significant Currencies 31 January 2019US$ US$

Hong Kong Dollar 2,347,538 Hong Kong Dollar 2,065,517Indian Rupee 1,662,264 South Korean Won 1,983,543South Korean Won 1,646,731 Indian Rupee 1,788,724Russian Ruble 1,016,995 Taiwan Dollar 975,761Chinese Yuan 900,137 Russian Ruble 895,985

A 10% weakening of the US$ against the above currencies would have resulted in an equal but opposite effect on theabove financial statement amounts to the amounts shown above, on the basis that all other variables remain constant. Inpractice, actual trading results may differ from the above sensitivity analysis and these differences could be material.



14. Financial Instruments and Associated Risks (continued)Fair Value EstimationIFRS 13 requires the Company to classify fair value measurement using a fair value hierarchy that reflects the significanceof the inputs used in making the measurements. The fair value hierarchy has the following levels:Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Valuation techniques based on observable inputs either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using: quoted market prices in active markets for similarinstruments; quoted prices for similar instruments in markets that are considered less than active; or othervaluation techniques where all significant inputs are directly or indirectly observable from market data.

Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments where thevaluation technique includes inputs not based on observable data and the unobservable inputs could have asignificant impact on the instrument’s valuation.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined onthe basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, thesignificance of an input is assessed against the fair value measurement in its entirety.

If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, thatmeasurement is a Level 3 measurement. Assessing the significance of a particular input to the fair value measurement inits entirety requires judgement, considering factors specific to the asset or liability.

The determination of what constitutes ‘observable’ requires significant judgement by the Directors. The Directors considerobservable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, notproprietary, and provided by independent sources that are actively involved in the relevant market.

The following table analyses within the fair value hierarchy, the Fund’s financial assets and liabilities measured at fair valueat 31 January 2020:

Level 1 Level 2 Level 3 TotalUS$ US$ US$ US$

Transferable securities 125,907,477 - - 125,907,477125,907,477 - - 125,907,477

The following table analyses within the fair value hierarchy, the Fund’s financial assets and liabilities measured at fair valueat 31 January 2019:

Level 1 Level 2 Level 3 TotalUS$ US$ US$ US$

Transferable securities 121,243,664 39,210 - 121,282,874121,243,664 39,210 - 121,282,874

All other assets and liabilities, including deposits with credit institutions, are carried at amortised cost; their carrying valuesare a reasonable approximation of fair value. As such, level 2 is deemed to be the most appropriate categorisation.

There were no transfers between levels for the Fund during the financial years ended 31 January 2020 and 31 January 2019.

The Company recognises the date of level transfer as the date of notification of an observable event or action, for example,share class suspension, liquidation, pending restructuring etc.



14. Financial Instruments and Associated Risks (continued)Level 3 SecuritiesAt 31 January 2020, the Fund held no investments, classified within level 3.

At 31 January 2019, the Fund had an investment in Prosperity Voskhod Fund Limited (Liquidation Stock) (“PVFL”),valued at nil, which was classified within level 3.

The Investment Manager elected to dispose of PVFL in the reporting period, as it was deemed worthless.

The following table represents the movement in level 3 investments for the financial year ended 31 January 2020:

PVFLUS$

Opening balance -Purchases/sales -Change in unrealised gains* 3.838Losses* (3,838)Closing balance -

*Included in “net gains/(losses) on financial assets at fair value through profit or loss” in the Statement of Comprehensive Income.

Emerging Markets RiskEmerging markets tend to have a greater level of risk and volatility associated with them and to be less liquid than moreestablished markets. The net asset value, the marketability and the returns derived from the particular Fund's investmentsmay be affected by uncertainties such as political or diplomatic developments, social and religious instability, changes ingovernment policies, taxation and interest rates, currency conversion and repatriation and other political and economicdevelopments in law or regulations in emerging markets and, in particular, the risks of expropriation, nationalisation andconfiscation of assets and changes in legislation relating to the level of foreign ownership. All of these facts may adverselyaffect the overall investment climate and, in particular investment opportunities for the Fund.

Companies in emerging markets may not be subject:(i) to accounting, auditing and financial reporting standards, practices and disclosure requirements comparable to those

applicable to companies in major markets; and

(ii) to the same level of government supervision and regulation of stock exchanges as countries with more advancedsecurities markets.

Accordingly, certain emerging markets may not afford the same level of investor protection as would apply in moredeveloped jurisdictions. The reliability of trading and settlement systems in some emerging markets may not be equivalentto that available in more developed markets, which may result in delays in realising investments. Lack of liquidity andefficiency in certain of the stock markets or foreign exchange markets in certain emerging markets may mean that fromtime to time the Investment Manager may experience more difficulty in purchasing or selling holdings of securities than itwould in a more developed market.

Fair Value of Financial Assets and Financial LiabilitiesAll of the Company’s financial instruments are carried at fair value on the Statement of Financial Position. Usually the fairvalue of the financial instrument can be reliably determined within a reasonable range of estimates. For certain otherfinancial instruments, including amounts receivable for investments sold/payable for investments purchased, accountspayable and accrued expenses, the carrying amounts approximate fair value due to the immediate or short-term nature ofthese financial instruments. The carrying amounts of all the Company’s financial assets and financial liabilities at theStatement of Financial Position date approximated their fair values. The major methods and assumptions used in derivingfair values are disclosed in Note 2(iii). In practice, actual amounts may differ from these amounts and these differencescould be material.

15. Share CapitalCapital Requirements As a self-managed investment company, the Company is required to have share capital of at least EUR300,000 at all times.The Company will seek to ensure that this minimum capital requirement is maintained at all times on an ongoing basis.

Shares in issueThe Company has an authorised share capital of US$60,000 divided into 60,000 subscriber shares of US$1 each and5,000,000,000 shares of no par value. Subscriber shares do not entitle the holders to any dividend and on winding upentitle the holder to receive the amount paid up thereon but not otherwise to participate in the assets of the Company.



15. Share Capital (continued)The subscriber share capital does not form part of shareholders’ Fund, and is disclosed in the financial statements by wayof this note only. In the opinion of the Directors, this disclosure reflects the nature of the Company’s business as aninvestment fund. Currently there are seven subscriber shares in issue (fully paid up for cash at par) held in a nomineecapacity on behalf of the Investment Manager.

Redeemable Participating SharesThe Company has an authorised share capital of 5,000,000,000 participating shares of no par value.

Redeemable participating shares carry the right to a proportionate share in the assets of the Fund and to any dividendsthat may be declared. The holders of redeemable participating shares are entitled to one vote per share at a poll. In theevent of the winding up of the Company, the holder is entitled to the net asset value of shares held as at the date of thecommencement of the winding up. Redeemable participating shares represent financial liabilities as defined under IAS 32“Financial Instruments: Disclosure and Presentation”.

The issued redeemable participating share capital was as follows:

31 January 2020 US$ US$ US$ SGD £EWF Institutional Retail A Retail B Institutional InstitutionalAs at 31 January 2019 1,287,127 187,670 11,123 11 2,345Shares issued during the financial year 24,004 - - - -Shares redeemed during the financial year (68,427) (9,898) (8,930) - -As at 31 January 2020 1,242,704 177,772 2,193 11 2,345

31 January 2019 US$ US$ US$ SGD £EWF Institutional Retail A Retail B Institutional InstitutionalAs at 31 January 2018 1,585,725 238,628 11,030 11 401Shares issued during the financial year 606 - 191 - 1,944Shares redeemed during the financial year (299,204) (50,958) (98) - -As at 31 January 2019 1,287,127 187,670 11,123 11 2,345

16. TaxationThe Company is an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended.The Company will not be liable to tax in respect of its income and gains other than on the occurrence of a chargeableevent. Generally a chargeable event arises on any distribution, redemption, repurchase, cancellation or transfer of shareson the ending of a “relevant period”, a “relevant period” being an eight year period beginning with the acquisition ofshares by the shareholder, and each subsequent period of eight years being immediately after the preceding relevant period.

A gain on a chargeable event does not arise in respect of:(i) a shareholder who is not an Irish resident and not ordinarily resident in Ireland at the time of the chargeable event,

provided the necessary signed statutory declaration is held by the Company; or(ii) certain exempted Irish resident investors who have provided the Company with the necessary signed statutory

declarations; or(iii) any transaction in relation to shares held in a recognised clearing system as designated by the order of the Irish

Revenue Commissioners; or(iv) certain transfers between spouses and former spouses, on the occasion of judicial separation and/or divorce; or(v) an exchange of shares arising on a qualifying amalgamation or reconstruction of the Company with another fund; or(vi) an exchange of shares representing one Fund for another Fund of the Company.

In the absence of an appropriate declaration, the Company will be liable to Irish tax on the occurrence of a chargeableevent, and the Company reserves the right to withhold such taxes from the relevant shareholders.

There were no chargeable events during the current or prior financial year.

Dividends, interest and capital gains (if any) received by the Company may be subject to withholding taxes imposed bythe country of origin and such taxes may not be recoverable by the Company or its shareholders. These dividends, interestand capital gains are shown gross in the Statement of Comprehensive Income with withholding tax shown as a separateline item.



17. Related PartiesAll transactions between the related parties were conducted at arm’s length as summarised below.

In the opinion of the Board of Directors, the Investment Manager is deemed a related party of the Company under IAS24 “Related Parties Disclosures”. Investment management fees charged during the financial year are included in theStatement of Comprehensive Income and the balance outstanding as at financial year end is detailed in Note 5 of thefinancial statements.

Mark Dwyer and Josephine Kitcher, Directors of the Company, are employees of the Investment Manager and have waivedtheir right to receive Directors’ fees.

Patricia Taylor, a Director of the Company, is also a Director of Wilton Secretarial Limited, the Company Secretary and apartner of William Fry solicitors, who provide legal services to the Company. Fees in respect of the Company Secretary aredetailed in Note 11 of the financial statements. Legal services fees of US$88,286 (31 January 2019: US$156,895) werepaid to William Fry during the financial year, which are included in legal fees in Note 11; and legal services fees payable toWilliam Fry at the financial year end date amounted to US$7,906 (31 January 2019: US$11,432) which are includedin “Sundry payables” in Note 5.

The Board of Directors is not aware of cross shareholdings between the Fund and the underlying funds in which they invest.

City of London Investment Group plc, of which the Investment Manager is a wholly-owned subsidiary, had the followingholdings in the Fund

No. of shares % holding31 January 2020SGD Institutional 11 100%

31 January 2019SGD Institutional 11 100%

Mark Dwyer, a Director of the Company, holds 401 shares in the £ Institutional Class of the Fund (31 January 2019: 401).

There were no other related party transactions during the financial year or related party balances at the financial year endother than those disclosed above.

18. Soft Commission ArrangementsThere were no soft commission arrangements entered into during the current or prior financial year.

19. Stock LendingThe Company did not engage in any agreement to lend securities in its portfolio in exchange for a fixed rate of interest.

20. Contingent LiabilitiesThere were no contingent liabilities as at 31 January 2020 and 31 January 2019.

21. Significant Events During the Financial YearThe Company issued an updated Prospectus and Fund Supplement on 30 September 2019. The Depositary, BNY Mellon Trust Company (Ireland) Limited, merged into the Global Sub-Custodian, The Bank ofNew York Mellon SA/NV effective 1 December 2019, and was renamed The Bank of New York Mellon SA/NV, DublinBranch. The new entity provides trustee, depositary and custody services to the Company. It is authorised by the EuropeanCentral Bank and regulated by the Central Bank of Ireland.

As a result of the merger, the services provided by TCIL to the Company are now provided by The Bank of New YorkMellon SA/NV, Dublin Branch, being BNY Mellon SA/NV’s branch in Dublin, with effect from that date.

There were no other significant events affecting the Company during the financial year.



22. Subsequent Events The recent outbreak of the coronavirus disease 2019 (abbreviated as “COVID-19”) has had, and continues to have, amaterial impact on global markets in several ways, including: (i) adding uncertainty to global markets with regard to howlong and how serious COVID-19 may prove over time (ii) impeding regular business operations across many differentbusinesses, including manufacturers and service providers; and (iii) slowing down or stopping international, national, andlocal travel.

Any and all such events mentioned above could have a material adverse effect on the Company’s returns given the extentto which the Company makes investments that have exposure to certain businesses or industries suffering downturns orimpediments exacerbated by COVID-19.

The Board are satisfied that the Investment Manager is actively monitoring and managing the Company’s assets within thedefined investment and risk parameters that have been established by the Board. With regard to day to day operations, theInvestment Manager and the other service providers to the Company have invoked business continuity procedures, includingremote working, to ensure the safety of staff and to enable the business to continue to operate. So far the Investment Managerand all service providers have been able to maintain an acceptable level of service with minimal disruption.

The eventual overall financial impact of the pandemic cannot be established reliably at this time but its adverse impact oneconomic and market conditions is expected to trigger a period of global economic slowdown.

The Company performance is down 19.8% for the year up to 18 May 2020, compared to the benchmark which is down18.0%. The Company has recorded a drop in AUM of $23.7mm up to 18 May 2020.

Subsequent to 31 January 2020 and up to 18 May 2020, the Company had not seen any material net outflows.

A revised supplement for The Emerging World Fund was published on 24 March 2020.

There have been no other significant events affecting the Company since 31 January 2020 that require amendment to ordisclosure in the financial statements.

23. Approval of Financial StatementsThe financial statements were approved by the Directors on 19 May 2020.


EWF Portfolio Statement as at 31 January 2020

Nominal Functional Fair Value Total NetHolding Currency US$ Assets %

Transferable securitiesAsia (31 January 2019: 38.73%) Aberdeen Standard Asia Focus Plc 165,673 GBP 2,293,097 1.79Aberdeen New Dawn Investment Trust Plc 567,116 GBP 1,824,076 1.42Aberdeen New India Investment Trust Plc 142,733 GBP 867,374 0.68Aberdeen New Thai Investment Trust Plc 124,835 GBP 826,901 0.65Asia Dragon Trust Plc 705,439 GBP 3,647,571 2.85Icapital.biz Berhad 2,670,500 MYR 1,515,108 1.18INVESCO Asia Trust Plc 433,954 GBP 1,567,385 1.22iShares MSCI Korea UCITS ETF 68,050 USD 2,784,776 2.17JPMorgan Asian Investment Trust Plc 395,210 GBP 1,958,831 1.53JPMorgan Indian Investment Trust Plc 777,316 GBP 7,413,400 5.79Korea Fund Inc. 101,372 USD 2,798,374 2.18LG Corp 39,765 KRW 2,347,165 1.83Morgan Stanley India Investment Fund Inc. 128,078 USD 2,589,097 2.02Samsung C&T Corp 35,735 KRW 3,245,639 2.53Scottish Oriental Smaller Companies Trust Plc 44,755 GBP 555,743 0.44Taiwan Fund Inc. 199,550 USD 3,877,256 3.03Vietnam Enterprise Investments Limited 419,335 GBP 2,510,946 1.96Vietnam Holding Ltd. 333,248 GBP 757,771 0.59VinaCapital Vietnam Opportunity Fund Limited 172,482 GBP 721,318 0.56Witan Pacific Investment Trust Plc 451,068 GBP 1,968,119 1.54

46,069,947 35.96

Europe (31 January 2019: 3.09%) Baring Emerging Europe Plc 112,722 GBP 1,323,938 1.03Central and Eastern Europe Fund Inc. 84,903 USD 2,274,127 1.78Fondul Proprietatea SA-GDR 29,353 USD 440,295 0.34Hansa Investment Company Limited 327,265 GBP 836,917 0.65

4,875,277 3.80

Global (31 January 2019: –%)BlackRock World Mining Trust Plc 130,944 GBP 617,514 0.48

617,514 0.48

Global Emerging Markets (31 January 2019: 28.10%)Aberdeen Emerging Markets Equity Income Fund Inc. 416,058 USD 3,085,070 2.41Aberdeen Emerging Markets Investment Co Ltd. 406,871 GBP 3,137,574 2.45Genesis Emerging Markets Fund Ltd. 926,372 GBP 9,176,894 7.16JPMorgan Emerging Markets Investment Trust Plc 369,344 GBP 4,873,561 3.81Templeton Emerging Markets Fund 109,129 USD 1,638,572 1.28Templeton Emerging Markets Investment Trust Plc 1,169,602 GBP 12,264,775 9.57

34,176,446 26.68

Hong Kong/China (31 January 2019: 11.50%)China Fund Inc. 113,616 USD 2,215,512 1.73Fidelity China Special Situations Plc 1,333,873 GBP 3,855,098 3.01HSBC China Dragon Fund 1,430,224 HKD 1,921,111 1.50iShares China Large Cap UCITS ETF 10,000 GBP 1,133,257 0.88JPMorgan Chinese Investment Trust Plc 411,789 GBP 1,742,453 1.36Lyxor China Enterprise UCITS ETF 11,900 GBP 1,829,840 1.43Morgan Stanley China A Share Fund Inc. 133,188 USD 2,611,817 2.04Templeton Dragon Fund Inc. 295,181 USD 5,369,342 4.19

20,678,430 16.14


EWF Portfolio Statement as at 31 January 2020 (continued)

Nominal Functional Fair Value Total NetHolding Currency US$ Assets %

Transferable securities (continued)Latin America (31 January 2019: 7.37%)Alfa S.A.B. de C.V. 1,081,837 MXN 808,318 0.63BlackRock Latin American Investment Trust Plc 295,314 GBP 1,876,344 1.46Lyxor MSCI Brazil UCITS ETF 67,400 USD 1,548,684 1.21Mexico Equity & Income Fund Inc. 55,416 USD 634,513 0.50Mexico Fund Inc. 131,174 USD 1,859,391 1.45Xtrackers MSCI Brazil UCITS ETF 49,555 USD 2,582,063 2.02

9,309,313 7.27

Middle East and Africa (31 January 2019: 4.17%)Gulf Investment Fund Plc 665,472 USD 885,078 0.69Naspers Ltd. 20,768 ZAR 3,403,795 2.66Remgro Ltd. 67,910 ZAR 826,175 0.64

5,115,048 3.99

Russia (31 January 2019: 4.03%)JPMorgan Russian Securities Plc 522,822 GBP 5,065,502 3.95

5,065,502 3.95

Total transferable securities (31 January 2019: 96.99%) 125,907,477 98.27

Financial assets at fair value through profit or loss 125,907,477 98.27

Other net current assets 2,216,028 1.73Total net assets 128,123,505 100.00

Total Assets %Analysis of investmentsTransferable securities admitted to an official stock exchange listing 97.71Deposits 2.10Current assets 0.19Total assets 100.00


EWF Significant Portfolio Movements for the financial year ended 31 January 2020 (unaudited)

In accordance with the Central Bank UCITS Regulations, a statement of the largest changes in the composition of thePortfolio Statement during the financial year is provided to ensure that the shareholders can identify changes in theinvestments held by the Fund. These statements present the aggregate purchases and sales of an investment, exceeding 1%of the total value of purchases and sales for the financial year. At a minimum the largest twenty purchases and sales arelisted. If a Fund enters into less than twenty purchases or sales during the financial year, then all transactions are presented.

Major Purchases Cost Major Sales ProceedsUS$ ’000 US$ ’000

Xtrackers MSCI Brazil UCITS ETF 3,356 iShares MSCI Taiwan UCITS ETF USD 3,128

Vietnam Enterprise Investments Limited 2,925 JPMorgan Emerging Markets Investment Trust Plc 3,001

Fidelity China Special Situations Plc 2,315 iShares MSCI Brazil UCITS ETF 2,983

Genesis Emerging Markets Fund Ltd. 2,284 iShares MSCI Korea UCITS ETF 2,483

Lyxor China Enterprise UCITS ETF 1,921 India Fund Inc. 1,484

iShares MSCI Taiwan UCITS ETF USD 1,755 China Fund Inc. 1,410

Naspers Ltd. 1,727 Morgan Stanley Frontier 1,404

Lyxor MSCI Brazil UCITS ETF 1,650 Xtrackers MSCI Mexico UCITS ETF 1,298

Morgan Stanley China A Share Fund Inc. 1,353 Schroder AsiaPacific Fund Plc 1,259

HSBC China Dragon Fund 1,240 Morgan Stanley China A Share Fund Inc. 1,255

iShares China Large Cap UCITS ETF 1,164 Morgan Stanley Institutional Fund Inc. -

Alfa S.A.B de C.V. 1,119 Emerging Markets Portfolio 1,238

Witan Pacific Investment Trust Plc 1,026 Fondul Proprietatea SA-GDR 1,194

BlackRock World Mining Trust Plc 898 HSBC MSCI Russia Capped UCITS ETF 1,159

Remgro Ltd. 848 First Pacific Co Ltd. 1,116

iShares MSCI Korea UCITS ETF 773 Prosus NV 1,092

VinaCapital Vietnam Opportunity Fund Limited 738 Genesis Emerging Markets Fund Ltd. 1,058

Hansa Trust Plc 681 Remgro Ltd. 1,044

Scottish Oriental Smaller Companies Trust Plc 561 Aberdeen Emerging Markets Equity Income Fund Inc. 980

Templeton Emerging Markets Fund 534 Vietnam Enterprise Investments Limited 700

Central and Eastern Europe Fund Inc. 499 Emaar Properties PJSC 697

LG Corp 451 Xtrackers MSCI Brazil UCITS ETF 691

Aberdeen Standard Asia Focus Plc 422 Templeton Emerging Markets Investment Trust Plc 537

Korea Fund Inc. 420 Fidelity China Special Situations Plc 504

Aberdeen New Dawn Investment Trust Plc 376 Genting Berhad 449

Schroder AsiaPacific Fund Plc 363 Morgan Stanley Asia-Pacific Fund Inc. 442

CJ Corp 395

Mexico Equity & Income Fund Inc. 349


Supplemental Unaudited Information

(i) Other Fees and ExpensesOther fees and operating expenses are detailed in the Company’s prospectus.

The total expenses are disclosed in the Statement of Comprehensive Income.

The Total Expense Ratio (“TER”) is determined by assessing the total operating costs per share class to the average shareclass net asset value. The TER for the financial year was as follows:

31 January 2020 31 January 2019EWFInvestment Management Fee Ratio:

US$ Institutional Class 1.00% 1.00%US$ Retail A Class 1.50% 1.50%US$ Retail B Class 2.25% 2.25%SGD Institutional Class 1.00% 1.00%£ Institutional Class 1.00% 1.00%

Other Expenses Ratio:US$ Institutional Class 0.47% 0.41%US$ Retail A Class 0.47% 0.41%US$ Retail B Class 0.47% 0.41%SGD Institutional Class 0.47% 0.41%£ Institutional Class 0.47% 0.41%

Total Expenses Ratio:US$ Institutional Class 1.47% 1.41%US$ Retail A Class 1.97% 1.91%US$ Retail B Class 2.72% 2.66%SGD Institutional Class 1.47% 1.41%£ Institutional Class 1.47% 1.41%

(ii) Investment RisksInvestors should note the risk factors set out in the prospectus in addition to those set out below.

Investors should note that investments in closed-ended schemes may be acquired at a significant discount or premium tothe relevant net asset value of the scheme. Generally, it is not the policy of the Fund to invest in units which are at a premiumto their relevant net asset value.

The investment policies of certain securities may permit them to gain exposure to the underlying markets using derivativeinstruments issued by third parties. Such securities will be subject to counterparty risk associated with those issuers andmay suffer losses, potentially equivalent to the full value of the derivative instrument, if any issuer fails to perform itsobligations under such derivative contract.

The Investment Manager does not use currency hedging. The value of any share expressed in its class currency is subjectto exchange rate risk in relation to the base currency of the Fund, being U.S. Dollar.

(iii) Exchange RatesThe following financial year end exchange rates against the U.S. Dollar were used in the preparation of these financial statements:

31 January 2020 31 January 2019British Pound 0.7586 0.7602Canadian Dollar 1.3226 1.3133Euro 0.9024 0.8715Hong Kong Dollar 7.7649 7.8467Malaysian Ringgit 4.0980 4.0960Mexican Peso 18.9180 19.0283Singapore Dollar 1.3649 1.3447South African Rand 14.9995 13.2700South Korean Won 1,191.8500 1,112.65Swiss Franc 0.9645 0.9921Taiwan Dollar 30.2090 30.7215United Arab Emirates Dirham - 3.6730


Supplemental Unaudited Information (continued)

(iv) Net Asset ValueTotal net asset value Net asset value per share

US$ US$ US$ SGD £EWF US$ Institutional Retail A Retail B Institutional Institutional31 January 2020 128,123,505 90.95 82.78 75.30 124.19 69.0131 January 2019 125,049,357 85.04 77.79 71.29 114.46 64.6531 January 2018 181,774,383 100.16 92.08 85.02 131.28 70.44

(v) UK Reporting Fund Status EWF has been approved as a Reporting Fund by HM Revenue and Customs under the provisions of the Offshore (Tax)Regulations 2009 and the Company has committed to seek to maintain Reporting Fund status in respect of those fundsthrough to at least 31 January 2020.

As a Reporting Fund for UK tax purposes, the Fund is required to report its Reported Income within six months of theend of the accounts financial year. The Fund intends to publish the relevant shareholder information, as required by HMRevenue & Customs under the provisions of The Offshore Funds (Tax) Regulations 2009, at the web addresswww.citlon.com on an annual basis within six months of the Company’s financial year end, being 31 July. A hard copy ofthe Reported Income statement may be obtained from the Investment Manager at the address on page 1 of this report.


UCITS V Remuneration Policy (Unaudited)

The World Markets Umbrella Fund PLC (the “Company”)Remuneration Policy (the “Policy”)The Company is authorised by the Central Bank of Ireland (the “Central Bank”) as a UCITS investment company.

The purpose of this Policy is to describe the remuneration practices of the Company in relation to its Identified Staff,namely the non-executive directors of the Company (the “Directors”) and appointed Designated Persons responsible forthe managerial functions identified in the Company’s UCITS Business Plan. The Company’s board of Directors (the“Board”) has established this Policy with the aim of ensuring that it is consistent with and promotes sound and effectiverisk management and does not encourage risk taking that is inconsistent with the risk profile and articles of association ofthe Company.

The Company currently has one sub-fund:• The Emerging World Fund (the “Fund”).

The total net assets of the Company as at most recent year end date (31 January 2020) was c.USD128 million.

Identified StaffThe categories of staff, including senior management, risk takers and control functions whose professional activities may havea material impact on the risk profile of the Company are identified in the Schedule to this Policy (the “Identified Staff”).

As at the date of this Policy, Identified Staff include the Directors and Designated Persons appointed in accordance withRegulation 98 of the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for CollectiveInvestment in Transferable Securities) Regulations 2019.

Types of RemunerationThis Policy applies to all forms of payments or benefits paid by the Company to the Identified Staff in exchange forprofessional services. Such forms of payment or benefit may include:

1. fixed remuneration (payments or benefits without reference to performance); and2. variable remuneration (additional payments dependent on performance or other contractual criteria).

The Company currently pays two non-executive directors (namely, Mr Kevin Molony and Ms Patricia Taylor) fixedremuneration and does not pay any variable remuneration.

Directors and Designated Persons who are also employees of the Company’s appointed investment manager, City of LondonInvestment Management Company Limited (the “Investment Manager”) – namely Mr Mark Dwyer, Ms Josephine Kitcherand Ms Ashleigh Simms - do not receive any remuneration from the Company, whether fixed or variable.

Remuneration PolicyThe Company's policy is to pay the relevant Identified Staff fixed remuneration only with no variable component being paid.

DisclosureThe Company’s policy is to comply with the remuneration-related disclosure requirements set out in the EuropeanCommunities (Undertaking for Collective Investment In Transferable Securities) Regulations 2011, as amended,consolidated or replaced from time to time (the “UCITS Regulations”).

Accordingly, this Policy shall be kept up-to-date and shall be disclosed on the following website: www.citlon.co.uk. Asummary statement in relation to this Policy shall also be included in the Company’s prospectus for the time being in placeand in each of the Company’s KIIDs.

The total amount of remuneration for the financial year, split into fixed and variable remuneration (if any), paid by theCompany to the Identified Staff will be disclosed in the Company’s annual report, as will the aggregate amount ofremuneration broken down by senior management whose actions have a material impact on the risk profile of the Company.The Board considers that this Policy is in line with the strategy, objectives and values of the Company and is not inconsistentwith the best interests of the Company.


UCITS V Remuneration Policy (Unaudited) (continued)

Remuneration Committee/Board OversightThe Board has determined in light of the size, internal operations, nature, scale and complexity of the Company that aremuneration committee is not required. Remuneration matters will be dealt with by the Board with the relevant affectedDirector absenting him/herself from such discussions.

The Company has in place a conflicts of interest policy and this policy and its implementation shall be subject to therequirements of such conflicts of interest policy.

ApplicationIt is the Company’s intention to apply this Policy to the extent applicable to the remuneration of any Identified Staff inaccordance with the UCITS Regulations and the European Securities Markets Authority (“ESMA”) Guidelines on SoundRemuneration Policies under the UCITS Directive (ESMA/2016/575) (the “ESMA UCITS Remuneration Guidelines”).

ReviewThe Board will review the implementation of this Policy on an annual basis.

ScopeThis is the Company’s remuneration policy and does not extend to delegates of the Company. However, it is the Company’spolicy that it will comply with the ESMA UCITS Remuneration Guidelines including insofar as and to the extent theESMA UCITS Remuneration Guidelines oblige the Company to ensure that similar remuneration requirements are appliedto its delegates.

The Company pays investment management fees at fixed rates which are disclosed in the Company’s Prospectus and annualreport. The Company does not pay any performance related management/ investment management fees.

SCHEDULEIdentified StaffBoard Members

• Mr Kevin Molony (Independent) (Chairman)• Ms Patricia Taylor• Mr Mark Dwyer• Ms Josephine Kitcher

Designated Person• Ms Ashleigh Simms

The above named individuals are the Identified Staff of the Company for the purpose of this Policy.

The Company has no other personnel or staff required to be categorised as Identified Staff for the purposes of complyingwith applicable UCITS requirements pertaining to the remuneration of its personnel or staff.


Important Notice

The World Markets Umbrella Fund plc (“the Company”) is an open-ended investment company with variable capital withsegregated liability between sub-funds, incorporated with limited liability under the laws of Ireland, authorised andsupervised by the Central Bank of Ireland as a UCITS fund. Registered address: 6th Floor, 2 Grand Canal Square, Dublin2, Ireland. The Company is a recognised scheme under Section 264 of the Financial Services and Markets Act 2000 of theUnited Kingdom.

City of London Investment Management Company Limited is the investment manager of the Company and is authorisedand regulated within the UK by the Financial Conduct Authority, registered as an Investment Advisor with the UnitedStates Securities Exchange Commission and regulated by the Dubai Financial Services Authority.

All reasonable care has been taken in the preparation of this information. No responsibility can be accepted under anycircumstances for errors of fact or omission. This material is for information only and does not constitute a solicitation oroffer to any person to buy or sell any related securities or financial instruments, or to provide investment advice or services.Tax treatment depends on personal circumstances and may change. This document is not advice on legal, taxation orinvestment matters so investors must rely on their own examination of such matters or seek advice. The value of investmentscan fall as well as rise and investors might not get back the sum originally invested. Past performance is no guarantee offuture results.

Shares in the sub-funds of The World Markets Umbrella Fund plc are not available for sale in any jurisdiction in whichsuch sale would be prohibited.

Dealing/Settlement/Administration EnquiriesBNY Mellon Fund Services (Ireland) Designated Activity CompanyPhone: +353 1 448 5033Fax: +353 1 642 8804

Investment ManagerCity of London Investment Management Company Limited77 Gracechurch StreetLondonEC3V 0AS

Websitehttp://www.citlon.com/ucits/ucits-overview.php