All information is at 31 December 2012 and unaudited. 
Performance at month end with net income reinvested 
                             One     Three      One    Three   Since launch 
                           Month    Months     Year    Years    (20 Sep 04)
Net asset value* (Undiluted)    1.3%      8.1%    22.5%    22.8%         137.3%
Net asset value* (Diluted)      1.3%      8.8%    22.5%    22.8%         137.4%
Share price                     2.6%      8.9%    21.5%    23.0%         129.9%
FTSE World Europe ex UK         1.9%      8.1%    17.8%     6.3%          85.4%
Sources: BlackRock and Datastream 
* Net asset value and share price performance includes the subscription share
reinvestment, assuming the subscription share entitlement per share was sold
and the proceeds reinvested on the first day of trading. 
At month end
Net asset value (capital only):        200.57p
Net asset value (including income):    201.24p
Net asset value (capital only)**:      200.57p
Net asset value (including income)**:  201.24p
Share price:                           193.75p
Discount to NAV (including income):       3.7%
Discount to NAV (including income)**:     3.7%
Gearing:                                  3.8%
Net yield:                                2.2%
Total assets (including income):       £242.8m
Ordinary shares in issue***:       116,285,355 
During the month 4,661,723 ordinary shares were tendered for total 
of £9.2m. 1,291,662 were placed in treasury and the remaining 3,370,061 shares
were cancelled. 
**  Diluted for treasury shares.
*** Excluding 6,052,299 shares held in treasury. 
Sector Analysis  Total Assets (%)  Index (%)  Country Analysis  Total Assets 
Consumer Goods               21.7       19.2  Switzerland                  25.7
Industrials                  15.5       15.2  Germany                      21.1
Financials                   14.2       20.7  France                       17.3
Health Care                  12.9       12.5  Netherlands                   6.3
Basic Materials              12.9        8.6  Denmark                       4.7
Oil & Gas                     9.0        6.5  Russia                        4.6
Consumer Services             6.8        5.3  Belgium                       4.3
Technology                    4.7        3.6  Finland                       3.6
Utilities                     2.4        4.3  Spain                         2.4
Telecommunications            1.5        4.1  Portugal                      2.3
Net current liabilities      (1.6)         -  Ireland                       2.0 

                            -----      -----  Hungary                       1.7
                            100.0      100.0  Italy                         1.5
                            =====      =====  Sweden                        1.4
                                              Norway                        1.2
                                              Other                         1.5

                                          Net current liabilities      


Ten Largest Equity Investments (in alphabetical order)

BASF                               Germany
Cie Financière Richemont           Switzerland
Continental                        Germany
Novo Nordisk                       Denmark
Roche                              Switzerland
Schneider Electric                 France
Swiss Re                           Switzerland
Syngenta                           Switzerland
Volkswagen                         Germany
Zurich Insurance                   Switzerland

Commenting on the markets, Vincent Devlin, representing the Investment Manager

During the month, the Company's NAV rose by 1.3% and the share price rose by
2.6%.  For reference, the FTSE World Europe ex UK Index increased by 1.9%
during the same period.  December saw a continuation of the 'risk-on' rally
that began in the summer of 2012.  Investors remained bullish and rotated into
more cyclical parts of the market at the expense of more 'defensive' names that
had performed well in 2012.

Both stock selection and sector allocation aided returns during the month.  The
Company's sector allocation, a larger weighting to basic materials and a lower
weighting to telecoms, both provided meaningful contributions to returns.

At a stock level, positions in utilities and financials performed best during
December.  Within utilities, a position in Iberdrola performed well after
positive developments were made regarding tariff deficits, removing fears that
Iberdrola would have higher taxes imposed to cover these deficits.  Within
financials, a position in Belgian bank KBC also performed strongly, after
announcing a restructuring programme and benefiting from a benign macro
environment and financial rally.  Elsewhere within the Company, holdings in
German auto company Volkswagen and French domestic autos name Renault both
performed strongly, as did a position in Deutsche Lufthansa, a German aviation
company, which benefited from the stable oil price and improving industry

Less successful positions included Italian name Saipem which underperformed
after the company's CEO and COO both resigned over an investigation into
contracts previously won in Algeria.  We have maintained our position in the
name as we feel the new CEO has vast experience within the industry and expect
the stock to regain some of its losses.  Within the same sector, CGG Veritas
also underperformed over news of a delay to the deal with integrated geoscience
business Fugro.  The Company also incurred underperformance through a position
in Technip, which experienced some sell-side analyst downgrades during the
month, and Dutch oil & chemical storage company Vopak, which suffered from
profit-taking in the market after a strong year of performance.

At the end of the month, the Company had higher weightings (when compared with
the FTSE World Europe ex UK Index) in basic materials, consumer goods, oil &
gas, consumer services, technology, health care and industrials while having
lower weights in utilities, telecoms and financials.

After a trough in activity in the summer of 2012, global leading economic
indicators have been improving across the US, Europe and China and the outlook
for 2013 looks brighter than for 2012.  This background is supportive for
equities.  However, there are still a number of uncertainties which can lead to
further volatility in markets.

Assuming that political momentum in the Eurozone continues to improve, and
assuming that we avert a bad fiscal cliff outcome in the US, we are entering
2013 with: positive global economic momentum; promising structural reforms in
Eurozone periphery countries gathering pace; supportive monetary policies
across the world; attractive valuation levels for European equities both versus
history, versus other developed markets and versus other asset classes; and
investor positioning that remains low in European equities.  We therefore see a
potential total return for European equities of around 15% in 2013, despite the
rally we have already seen in 2012.  This is backed by better earnings momentum
as we move through the year and a gentle re-rating of European equities as
investor fears continue to diminish.

17 January 2013


Latest information is available by typing on the internet,
"BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).  Neither the contents of the Manager's website nor the contents of
any website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement.

-0- Jan/17/2013 16:39 GMT

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