Interim Results

F&C Pacific Inv Tst 
25 September 2003


EMBARGOED UNTIL 07.00AM THURSDAY 25 SEPTEMBER 2003



Contact: Tony Broccardo, F&C Management Limited, 020 7628 8000/Emma Chilvers,
Lansons Communications, 020 7294 3606



                        F&C PACIFIC INVESTMENT TRUST PLC

                     Unaudited Interim Statement of Results

                       for the half-year to 31 July 2003









SUMMARY OF CONSOLIDATED RESULTS




                                             31 July 2003         31 January 2003               % change

Consolidated net assets                           £203.4m                 £176.9m                  +15.0

Consolidated net asset value per
share                                             109.22p                  93.33p                  +17.0

Share price                                        94.75p                  81.25p                  +16.6



Commenting on these results Christopher Purvis, the Chairman said:



Market Environment

During the six months under review, the world's stockmarkets performed well.
This was reflected by an 18.4% rise in the FTSE World Index (sterling).



In the first two months, markets were relatively unchanged. However, since the
middle of March there has been a significant recovery. Markets had been very
depressed in the first quarter and this rise was partly a technical correction;
but also there was an increase in optimism about economic recovery, particularly
in the United States.



The Pacific region performed over the six months broadly in line with the rest
of the world; the Company's benchmark rose by 18.0%. The first two months were
similar to other markets in being lacklustre. The outbreak of SARS (Severe Acute
Respiratory Syndrome) was a particular cause of concern in the region. But since
the end of March markets in the region, particularly those outside Japan, rose
significantly.



Portfolio & Performance

The net asset value of your Company increased by 17.0% during the six month
period. This represented slight under-performance of the benchmark which, as
noted above, increased by 18.0%. The asset allocation between Japan and the rest
of Asia was a positive factor: the Company was more heavily invested in the rest
of Asia than in Japan. The Japanese market performed well, rising by 14.8%, but
the rest of the region performed more strongly, rising by 21.2%.



Asset allocation within the rest of the region was also positive. In particular,
the Taiwanese market, in which we had an overweight position, performed well
over the last four months of the half-year. This was caused by the rapid
recovery from SARS and the better outlook for electronics.



The main reason behind the underperformance during the six months was the
selection of stocks in the Japanese portfolio. The Japanese portfolio was
structured in a defensive manner at the beginning of our financial year,
reflecting concerns about the outlook for Japan. However, as noted above, the
market rallied by 14.8% over the period and indeed the bottom in the Japanese
market occurred later than in other markets and the recovery from May to July
was sharper. This led to the high risk sectors in which we were underweight, for
example financials and information technology, performing particularly well.
Meanwhile, the sectors to which we were more exposed, for example
pharmaceuticals, advanced more slowly than the market.



Management

F&C Management has appointed Christian Dangerfield to run their Pacific team;
and, when he joins F&C Management later this year, he will be the lead manager
of the Company. In the meantime the Company is being managed by Tony Broccardo,
F&C Management's Chief Investment Officer, together with the other members of
the Pacific team at F&C. The Board welcomes this new appointment. The Board
continues to monitor performance closely. As a result of the new remuneration
arrangements for the Manager introduced on 1 February 2003 the management fee
for the period was £319,000, compared with £1,307,000 for the same period last
year.



Share Buybacks

We have continued to repurchase shares for cancellation during the period under
review. Since the beginning of the period, we have bought back and cancelled
3,306,100 shares at an average discount of 17.1%. This is equivalent to 1.75% of
the shares in issue at the end of the last financial year.



Your Board will continue to monitor the discount to net asset value and believes
that buybacks, combined with marketing activities, are important factors in
limiting fluctuations caused by supply and demand imbalances.



Outlook

Our managers are optimistic about economic developments in the region,
particularly outside Japan. Domestic demand continues to pick up in a number of
countries and China is becoming an evermore important driver of export growth.
Many stocks in the region are attractively valued. There are many world class
companies in Japan which are on reasonable valuations and have the potential to
rise significantly. However, Japan's economy remains troubled by deflation and
inadequate reform and the economy is dependent on strengthening external demand
- either from the USA or the Pacific region. Our managers are therefore laying
greater emphasis on markets in other parts of the region.





Christopher Purvis



September 2003







Unaudited Consolidated Balance Sheet
                                                                  31 July           31 July   31 January 2003
                                                                     2003              2002            £'000s
                                                                   £'000s            £'000s
Fixed assets
Investments                                                       201,134           237,749           177,099

Current assets
Debtors                                                               736             3,407             4,902
Taxation recoverable                                                  293                 -             1,221
                                                                    1,029             3,407             6,123

Cash at bank and short-term deposits                                9,265            26,616             3,584
                                                                   10,294            30,023             9,707

Current liabilities
Creditors: amounts falling due within one year
Foreign currency loans                                            (5,161)                 -           (5,072)
Other                                                             (2,860)           (1,040)           (4,824)
                                                                  (8,021)           (1,040)           (9,896)

Net current assets/(liabilities)                                    2,273            28,983             (189)

Total assets less current liabilities                             203,407           266,732           176,910
Creditors: amounts falling due

after more than one year
Foreign currency loans                                                  -          (40,089)                 -

Net assets                                                        203,407           226,643           176,910

Capital and Reserves
Called up share capital                                            46,561            52,187            47,387
Capital redemption reserve                                         11,010             5,384            10,184
Share premium                                                           5                 5                 5
Capital reserves                                                  137,097           160,306           111,826
Revenue reserve                                                     8,734             8,761             7,508
Total equity shareholders' funds                                  203,407           226,643           176,910



Net asset value per ordinary share - pence                         109.22            108.57             93.33




The geographical distribution of investments at 31 July 2003 was: Japan - 43.6%;
Australasia - 19.5%; South Korea - 9.8%; Taiwan - 7.6%; Hong Kong - 6.3%; China
- 4.2%; Other - 9.0%.





Unaudited Consolidated Statement of Total Return (incorporating the Revenue
Account*)

for the 6 months to 31 July
                                                                 

                                                                 2003                                    2002
                                      Revenue    Capital        Total      Revenue      Capital         Total
                                       £'000s     £'000s       £'000s       £'000s       £'000s        £'000s

Gains/(losses) on investments             -       28,004       28,004            -     (22,425)      (22,425)

Exchange gains/(losses)                 184        (127)           57         (40)        (986)       (1,026)

Income                                2,475            -        2,475        2,550           -         2,550

Management fee                         (521)         202         (319)      (1,307)          -        (1,307)

Other expenses                        (363)         (31)        (394)        (414)         (56)         (470)

Net return before finance costs
and taxation                          1,775       28,048       29,823          789     (23,467)      (22,678)

Interest payable and similar
charges                                 (10)            -         (10)        (396)           -         (396)

Return on ordinary activities
before taxation                       1,765       28,048       29,813          393     (23,467)      (23,074)

Taxation on ordinary activities        (539)        (163)        (702)        (205)       (264)         (469)

Return attributable to equity
shareholders                          1,226       27,885       29,111          188     (23,731)      (23,543)

Dividend on ordinary shares               -            -            -            -           -             -

Amount transferred
to/(from) reserves                    1,226       27,885       29,111          188     (23,731)      (23,543)

Return per ordinary share -
pence                                  0.65        14.85        15.50         0.09      (11.31)       (11.22)



* The revenue column of this statement is the profit and loss account of the
Group.

All revenue and capital items in the above statement derive from continuing
operations.

Unaudited Summarised Consolidated Cash Flow Statement for the 6 months to 31
July

                                                                                    2003                   2002
                                                                                  £'000s                 £'000s

Net cash inflow from operating activities                                          2,181                    845
Interest paid                                                                       (11)                  (399)
Total tax received/(paid)                                                            370                  (237)
Net cash inflow from financial investment                                          9,464                 18,428
Equity dividends paid                                                            (1,968)                (2,214)

Net cash inflow before use of liquid resources and
financing                                                                         10,036                 16,423
Increase in short-term deposits                                                  (3,286)                  (379)
Net cash outflow from financing                                                  (2,518)                (2,165)
Increase in cash during the period                                                 4,232                 13,879




The Interim financial statements have been prepared on the basis of the
accounting policies set out in the Company's financial statements at 31 January
2003.



The Board recommends that no interim dividend payment be made.

The Report and Accounts will be posted to shareholders in early October 2003.
Copies may be obtained during normal business hours from the Company's

Registered Office, Exchange House, Primrose Street, London EC2A  2NY.





By order of the Board

F&C Management Limited, Secretary

24 September 2003


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