Investment Policy and Gearing

F&C Capital & Income Inv Tst PLC
21 July 2004



Investment Policy: The Board of F&C Capital and Income Investment Trust (the
'Company') notes the publication of the Investment Entities (Listing Rules and
Conduct of Business) Instrument 2003 and announces that, while the Company may
from time to time hold shares in other listed investment companies (including
investment trusts), it is the Company's policy to invest no more than 15 per
cent of its gross assets in other listed investment companies (including listed
investment trusts). The implementation of this policy will not require the
Company to dispose of any existing shareholding.

The Company does not currently hold any investments in other investment trusts.

Gearing Policy: The Board believe that tactical use of gearing can add value
from time to time. It is the Board's policy regularly to discuss with the
Manager their views on gearing. As a result of this, they will reach a decision
on the level of gearing which the Mmanager will then implement.

Gearing Range: 5% cash - approximately 10% gearing (absolute limit of £10m).




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