Fee Structure & Notice period

F&C Pacific Inv Tst 
31 January 2003



For Immediate Release - 31 January 2003


F&C Pacific Investment Trust PLC

Fee structure and notice period


The Board is pleased to announce that it has reached agreement with F&C on two
important matters.  With effect from 1st February 2003 a two way performance fee
will be introduced and the notice period will be reduced from twelve months to
six months.


1. Fee Structure

When the Company published its interim report in October last year, the Chairman
referred in his statement to the Board's focus on the performance of the
Manager, F&C Management Limited ('F&C'), and on bringing their management fee
more in line with the objectives of the Company.

The Company provides its shareholders with a broad-based exposure to equity
markets across the Pacific region.  The Board measures the successes and
failures of F&C by comparing its performance against an index.  Since the Board
believes that shareholders wish to see a diversified portfolio rather than one
too concentrated on Japan, it has agreed a composite index which, at the start
of each financial year, is set at 50 per cent Japan and 50 per cent the rest of
the region, in preference to an index based purely on market capitalization.  It
is the objective of the Company to outperform this index.

The Board is now pleased to announce that with effect from 1st February 2003 a
two way performance fee is being introduced.  The base management fee, which is
already highly competitive, will remain at 0.6% per annum, but now it will be
calculated on the basis of net assets, rather than of funds under management.
The performance fee, calculated annually, will allow for the payment to F&C of
an additional 0.15% for each 1% of outperformance of the index and the repayment
to the Company of 0.15% for each 1% of underperformance.  The minimum total fee
payable in any one year to F&C will be 0.25% of net assets and the maximum total
fee payable will be 1.15% of net assets.

In the past, the base management fee has been calculated quarterly in advance on
the basis of the average of funds under management over a three year historic
average.  Calculation will now be made quarterly in advance on the basis of the
net assets at the start of the quarter in question.

In calculating the performance fee the impact on net asset value per share from
any share buy backs that may have taken place during the year will be excluded
from the calculation.

The Board gave consideration to the introduction of a so called high water mark.
Some investment trusts that have performance fees do not allow such a fee to
be paid until the value of net assets has reached the level at which a
performance fee was last paid.  The object of such a high water mark is to
prevent managers benefiting from volatility.  The Board decided that, in line
with the stated objectives of the Company, F&C should be rewarded or penalized
purely for good or bad relative, rather than nominal, performance. The Board
also thought that the two way fee was a good disincentive to volatility.  There
is therefore no high water mark.


2. Notice Period

The Board has also given consideration to the notice period.  Your Directors
believe that it is now appropriate that there should be a notice period of less
than the twelve months, as is currently the position.  Therefore with effect
from 1st February 2003, the management agreement may be terminated upon six
months' notice, given by either party.


31 January 2003



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