BARING EMERGING EUROPE PLC: Interim Management Statement

 BARING EMERGING EUROPE PLC                                                  Interim Management Statement                                 Review of the period from 1 October 2013 to 31 December 2013            This Interim Management Statement for the period from 1 October 2013 to 31 December 2013 contains information which covers that period, unless otherwise stated.  INVESTMENT OBJECTIVE  The investment objective of the Company is to achieve long-term capital growth, principally through investment in Emerging European securities.  MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD  The directors confirm the following material events and transactions which have occurred since the Company's year end on 30 September 2013.  Portfolio:  The company participated in the IPOs of the Russian consumer lender Tinkoff Credit Services, the electric utility Energa in Poland and the secondary offering in Banco Santander's subsidiary in Poland, BZ WBK.  The inclusion of the Greek index in the MSCI Emerging Europe Index in November extended the investment universe and lead to the purchase of state lottery OPAP, Bank Piraeus and oil refiner Motor Oil Hellas for the portfolio.  Exposure to the Energy sector was further reduced as holdings in the Russian oil company Lukoil, one of the largest positions in the portfolio, and in the Turkish refiner Tupras were sold.  The Central European part of the portfolio saw modest activity. The Hungarian generic pharmaceuticals producer Gedeon Richter was added while profits were taken in the Polish Real Estate Developer PHN and the satellite subscription broadcaster Cyfrowy Polsat.  Discount:  The share price discount to net asset value at 31 December 2013 was 10.2% (30 September 2013: 11.9%)  Share Capital:  During the period from 1 October 2013 to 31 December 2013 the Company bought back 750,000 ordinary shares at a cost of £5.86 million. At 31 December 2013 the Company's issued share capital consisted of 19,498,043 ordinary shares (excluding the 3,318,207 ordinary shares held in treasury).  Results for the Year Ended 30 September 2013  On 28 November 2013 the Company announced its final results for the year ended 30 September 2013. The annual report and accounts for the year ended 30 September 2013 was mailed to shareholders on 10 December 2013.  ANNUAL GENERAL MEETING HELD ON 14 JANUARY 2014  Resolutions  All the resolutions set out in the Notice of Meeting were duly passed. The resolutions approved included those which authorise the Company to issue shares for cash, including shares held in treasury, to make market purchases of the Company's own shares and to amend the Company's investment policy to include Greece within the definition of Emerging Europe.  Annual Dividend  Shareholders approved the payment of an annual dividend of 19.0p per ordinary share for the year ended 30 September 2013 to be paid on 3 February 2014 to members on the register at the close of business on 20 December 2013. The shares were marked ex-dividend on 18 December 2013.  The directors are not aware of any other significant events or transactions up to the date of this report which would have a material impact on the financial position of the Company.  COMPANY STATISTICS                               31 December 2013   13 February 2014  Gross Assets                       £159.8 million     £145.6 million  Net Asset Value Per Ordinary Share  819.59p            746.60p  Share Price                         736.00p            680.25p  Discount to Net Asset Value          10.2%               8.9%  CUMULATIVE PERFORMANCE TO 31 DECEMBER 2013 (Total Return in percentage terms)  Performance                        Over 3 months   1 Year   3 Years  Share Price*                         +1.3%          +2.2%     -5.3%  Net asset Value*                     -0.9%          +1.7 %    -4.3%  Benchmark +                          -3.6%          -6.1 %    -4.5 %  * Source - Barings  + Source - Barings. MSCI EM Europe 10/40.  PORTFOLIO INFORMATION AT 31 DECEMBER 2013  Ten largest holdings:                                                       % of Total Assets          Geographical  breakdown                                                                                    %  Sberbank                               11.6  Lukoil Holdings                         9.2                   Russia                 72.4  Gazprom                                 7.7                   Turkey                 11.5  Mobile Telesystems                      5.6                   Poland                  6.3  PKO                                     4.6                   Czech Republic          0.3  VTB Bank                                4.6                   Ukraine                 2.3  Sistema                                 4.3                   Hungary                 2.1  Norilsk Nickel                          3.3                   Other                   2.5  Novatek                                 3.2                   Cash and  equivalents      2.6  Halk Bank                               3.2                   Total                 100.0  17 February 2014  END