Interim Management Statement

BARING EMERGING EUROPE PLC                           

                         Interim Management Statement                          

         Review of the period from 1 October 2012 to 31 December 2012          

This Interim Management Statement for the period from 1 October 2012 to 31
December 2012 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 2012.

Portfolio:

The portfolio's exposure to Polish equities has been significantly reduced
since the Company's year end on 30 September 2012. This reflects the fact that
target prices were reached in Polish financial stocks and miners. In Russia,
holdings in the dominant gas producers Novatek and Gazprom were reduced and
funds were re-invested in the mobile telecom operator MTS and miner Norilsk
Nickel. The portfolio remains overweight the Russian market relative to the
benchmark index. The portfolio weighting in Turkish equities was increased as
economic indicators consistently surprised positively and corporate
profitability improved, underscoring the attractive growth and valuation
characteristics of the Turkish stock market. The Company participated in the
IPO of MD Medical, a leading Russian private healthcare operator.

Discount:

The share price discount to net asset value at 30 December 2012 was 10.4% (30
September 2012: 9.4%)

Share Capital:

During the period from 1 October 2012 to 31 December 2012 the Company bought
back 1,803,000 ordinary shares at a cost of £12.22 million. At 30 December 2012
the Company's issued share capital consisted of 22,568,043 ordinary shares
(excluding the 3,318,207 ordinary shares held in treasury).

Results for the Year Ended 30 September 2012

On 29 November 2012 the Company announced its final results for the year ended
30 September 2012. The annual report and accounts for the year ended 30
September 2012 was mailed to shareholders on 5 December 2012.

ANNUAL GENERAL MEETING HELD ON 9 JANUARY 2013

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 adopt New Articles of Association.

Annual Dividend

Shareholders approved the payment of an annual dividend of 16.0p per ordinary
share for the year ended 30 September 2012 to be paid on 1 February 2013 to
members on the register at the close of business on 14 December 2012. The
shares were marked ex-dividend on 12 December 2012.

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 2012       5 February 2013

Gross Assets                          £186.1 million         £199.6 million

Net Asset Value Per Ordinary Share        824.72p               906.05p

Share Price                               739.00p               810.00p

Discount to Net Asset Value                10.4%                 10.6%


CUMULATIVE PERFORMANCE TO 31 DECEMBER 2012  (Total Return in percentage terms)

Performance Over                   3 months        1 Year        3 Years

Share Price*                         +7.4%         +20.4%        +2.2%

Net asset Value*                     +8.3%         +24.4%        +1.7%

Benchmark+                           +6.7%         +21.8%        +4.1%

     * Source - AIC

     + Source - Barings. MSCI EM Europe 10/40.


PORTFOLIO INFORMATION AT 31 DECEMBER 2012

Ten largest holdings: 

                    % of Total Assets              Geographical breakdown %

Sberbank                 11.4

Lukoil Holdings          10.9                      Russia              64.6

Gazprom                   7.5                      Turkey              20.8

Tupras                    4.4                      Poland               8.5

Halk Bank                 4.1                      Czech Republic       0.9

Novatek                   4.1                      Ukraine              1.3

Rosneft                   3.6                      Hungary              2.4

VTB Bank                  3.5                      Other                1.5

PZU                       3.3

Norilsk Nickel            3.3                      Total              100.0



6 February 2013