All information is at 31 August 2013 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)    -4.2%    -1.5%    28.6%    43.3%         173.2%
Net asset value (Diluted)      -3.5%    -1.2%    28.8%    43.2%         172.9%
Share price                     0.2%     1.3%    33.7%    54.9%         167.6%
FTSE World Europe ex UK        -3.7%    -1.3%    26.3%    32.4%         113.2%
Sources: BlackRock and DataStream 
At month end
Net asset value (capital only):        227.89p
Net asset value (including income):    234.68p
Net asset value (capital only)*:       228.79p
Net asset value (including income)*:   234.38p
Share price:                           228.75p
Discount to NAV (including income):       2.5%
Discount to NAV (including income)*:      2.4%
Subscription share price                23.38p
Gearing:                                  4.2%
Net yield:                                1.8%
Total assets (including income):       £266.0m
Ordinary shares in issue:          108,719,211**
Subscription shares in issue        23,184,318 
*  Dilutedfor subscription shares and treasury shares.
** Excluding 5,718,353 shares held in treasury. 
Sector Analysis  Total Assets (%)  Index (%)  Country Analysis  Total Assets 
Financials                   23.6       22.1  France                       21.1
Consumer Goods               16.1       18.6  Switzerland                  18.5
Health Care                  14.8       12.1  Germany                      17.1
Industrials                  13.9        5.7  Netherlands                  15.7
Consumer Services            11.4       13.9  Belgium                       6.1
Technology                   10.8        3.7  Sweden                        5.4
Basic Materials               5.5        8.4  Denmark                       4.2
Telecommunications            3.7        4.1  Russia                        3.7
Oil & Gas                     1.1        7.6  Ireland                       3.5
Utilities                       -        3.8  Spain                         2.2
Net current liabilities      (0.9)         -  Finland                       1.0 

                            -----      -----  Portugal                      1.0
                            100.0      100.0  Hungary                       0.8
                            =====      =====  Ukraine                       0.6

                                          Net current liabilities      


Ten Largest Equity Investments (in alphabetical order) 
Anheuser Busch                     Belgium
Bayer                              Germany
Continental                        Germany
Novo Nordisk                       Denmark
Reed Elsevier                      Netherlands
Roche                              Switzerland
Sanofi                             France
SAP                                Germany
Swiss Re                           Switzerland
Zurich Insurance                   Switzerland 
Commenting on the markets, Vincent Devlin, representing the Investment Manager
During the month, the Company's NAV fell by 4.2% and the share price gained 
0.2%. For reference, the FTSE World Europe ex UK Index decreased by 3.7% during
the same period. 
European equities were down during August despite the gathering evidence of an
improvement in the domestic economy and a decline in peripheral government bond
yields. Political tensions in the Middle East and North Africa and surprisingly
positive data from China contributed to commodities reporting their best
performance since January. Although volumes were relatively low for much of the
month, there was a noticeable reversal in momentum within the market. Market
level volatility also increased. Less loved sectors such as basic materials,
telecoms and oil & gas outperformed at the expense of real estate, travel &
leisure and insurance. 
Although the Company's share price significantly outperformed the broader
market, the underlying NAV actually fell by more than the market. Both stock
selection and sector allocation caused losses for the Company when compared
with the broader market. As mentioned above, previously out of favour sectors
outperformed during August. Consequently, the Company's underweight position to
oil & gas detracted from returns as the sector significantly outperformed the
broader market. We have not changed our view on the sector as a result of this
and remain underweight given our concerns over the lack of growth prospects for
oil majors and declining levels of capital expenditure in the sector. 
Stock selection proved challenging in the consumer goods and consumer services
sectors. Positions in German auto supplier Continental and French auto business
Renault both detracted within the consumer goods sector and Ryanair detracted
within the consumer services sector. Within health care, a position in Sanofi
performed poorly after reporting poor results for the second quarter of 2013,
but we continue to like the long-term potential of the business. 
Better performance came from selected financials, as companies with a higher
sensitivity to economic performance performed. The most successful positions
included retail bank KBC, asset manager GAM and insurance business Allianz. 
At the end of the month, the portfolio had higher weightings (when compared
with the broad market index) in consumer services, financials, technology and
health care, and lower weightings in basic materials, telecoms, consumer goods,
oil & gas, industrials and utilities. At the end of August, the portfolio was
geared by 4.2%. 
In August, the European business expectations moved to a positive stance for
the first time in two years. Expectations for the UK service economy were also
strong, as was Eurozone consumer confidence, reinforcing the view that recovery
is under way. Chinese industrial production rebounded on the back of improving
export demand as well as accelerations in infrastructure and other building
Supportive monetary policies, recovering economic momentum and a relatively
stable political backdrop, notwithstanding some uncertainty ahead of the German
elections in September and the unsteady political situation in Italy, provides
a reassuring environment for European equities and is consistent with our
thesis that the Eurozone should continue to improve into 2014. We expect that
the European Equity asset class will continue to be supported by ongoing shifts
in investor allocation towards Europe as more supportive evidence of an
improving macro picture emerges. 
13 September 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- Sep/13/2013 15:42 GMT
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