All information is at 30 September 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)     2.8%      5.4%    29.6%    34.9%         180.8%
Net asset value (diluted)       2.3%      4.8%    29.7%    35.3%         179.2%
Share price                     1.0%      8.5%    29.9%    38.2%         170.2%
FTSE World Europe ex UK         3.2%      7.0%    28.3%    24.8%         120.0%
Sources: BlackRock and DataStream 
At month end
Net asset value (capital only):        234.28p
Net asset value (including income):    241.27p
Net asset value (capital only)*:       234.05p
Net asset value (including income)*:   239.81p
Share price:                           231.00p
Discount to NAV (including income):       4.3%
Discount to NAV (including income)**:     3.7%
Subscription share price                27.88p
Gearing:                                 11.2%
Net yield:                                1.8%
Total assets (including income):       £291.7m
Ordinary shares in issue:          108,719,211**
Subscription shares in issue        23,184,318 
*  Diluted for subscription shares.
** Excluding 5,718,353 shares held in treasury. 
Sector Analysis  Total Assets (%)  Index (%)  Country Analysis  Total Assets 
Financials                   24.0       21.9  France                       20.5
Consumer Goods               18.5       13.5  Switzerland                  18.2
Industrials                  15.1       13.1  Germany                      15.9
Health Care                  13.6        9.7  Netherlands                  15.4
Consumer Services            11.0       10.9  Belgium                       5.8
Technology                    8.8       10.3  Sweden                        5.4
Basic Materials               4.0        5.7  Russia                        4.4
Telecommunications            3.4        3.4  Denmark                       3.8
Oil & Gas                     1.4        8.2  Ireland                       3.0
Utilities                       -        3.3  Spain                         2.0
Net current assets            0.2          -  Portugal                      1.5 

                            -----      -----  Finland                       1.4
                            100.0      100.0  Poland                        0.9
                            =====      =====  Hungary                       0.8
                                              Ukraine                       0.6
                                              Italy                         0.2
                                              Net current assets            0.2

Ten Largest Equity Investments (in alphabetical order)
Anheuser Busch                     Belgium
Bayer                              Germany
Continental                        Germany
Novo Nordisk                       Denmark
Reed Elsevier                      Netherlands
Roche                              Switzerland
Sanofi                             France
Société Générale                   France
Swiss Re                           Switzerland
Zurich Insurance                   Switzerland
Commenting on the markets, Vincent Devlin, representing the Investment Manager

During the month, the Company's undiluted NAV rose by 2.8% and the share price
gained 1.0%. For reference, the FTSE World Europe ex UK Index increased by 3.2%
during the same period.

The European equity market rebounded from a subdued performance in August,
seeing reasonable gains over the month. Investors remained bullish in general
despite many companies confirming relatively muted current trading and outlook
statements. Corporate actions increased, especially in telecoms which saw
strong gains in the month. Value continued to outperform growth in Europe as
investors look towards further economic recovery prospects.

Stock selection was the main cause of the Company's underwhelming performance
during September. Positions in consumer services, technology and telecoms were
especially challenging. The Company's sector allocation was rather more
successful, as the decision to own a higher weighting in technology and to
avoid oil & gas both proved profitable. The use of gearing also aided returns
in a positive month for European equity markets.

The worst performer in the Company during September was Irish airline Ryanair.
Ryanair has performed well for the portfolio over the previous 12 to 18 months,
but fell as the management team attempted to lower the high level of
expectations embedded in consensus forecasts, citing weak forward yields for
the downgrade. The Company also suffered (when compared with the broader
market) from not owning holdings in telecoms business Nokia, which saw strong
gains as its handset business was sold to Microsoft, and Spanish banks BBVA and
Banco Santander.

On a more positive note, selected positions in Russia did deliver strong
returns, including social media business Mail.Ru and Sberbank. Positive
performance also came from a position in Deutsche Post, which we believe could
benefit from a recent restructuring, and German auto supplier Continental.
Positions in selected financials also performed well, including KBC and 
Générale, whose management team delivered a well received presentation at a
recent London-based investor conference.

At the end of the month, the Company had higher weightings (when compared with
the broad market index) in consumer services, financials, technology, consumer
goods and health care, and lower weightings in basic materials, telecoms, oil &
gas, industrials and utilities. At the end of the month, the Company was geared
by 11.2%.

We see an improving outlook for European companies as the world economic
recovery continues. That recovery remains weak, but economic data continues to
improve both in developed markets and also in China, where data seems to have
rebounded following the fall-back earlier in the year. Within Europe, we
continue to see improving sentiment both at the corporate level and also in
terms of consumer activity in certain countries. The forthcoming issue around
tapering is likely to create market volatility which in itself can generate
opportunities. Going into the Q3 reporting season, we believe we may have seen
the bottom in European corporate earnings. However, we are fundamental stock
pickers and remain selective amidst market expectations which have, in some
specific cases, got ahead of themselves.

11 October 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- Oct/11/2013 10:38 GMT

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