Interim Results

Progressive Euro Alt. Portfolio Ltd
06 June 2003

PROGRESSIVE EUROPEAN ALTERNATIVE PORTFOLIO LIMITED


Announcement of Interim Results from incorporation
on 9 July 2002 to 31 March 2003


KEY FEATURES


Investment objectives



The Company's objectives are to achieve:

  • positive annual returns in all market conditions; and

  • significantly higher returns than the composite European equity market* 
    over the medium term, with less variability of returns.


*as measured by the FTSE Eurotop 300 Index in Euros.


The Company invests, directly or indirectly, in a portfolio of hedge funds 
predominantly focused on European Equity Securities.





STATISTICS


                                              At 31 Mar 2003     At launch


Net asset value ('NAV') per share             97.19p             97.21p*
Share price                                   98.75p             100.00p



* after share issue expenses





PERFORMANCE



For the period from launch (19 December 2002) to 31 March 2003


FTSE Eurotop 300 Index in Euros                                     -13.78%

Progressive European Alternative Portfolio
  NAV per share                                                     -0.02%
  Share price                                                       -1.25%






CHAIRMAN'S STATEMENT



I am pleased to present my first interim report to the shareholders of
Progressive European Alternative Portfolio Limited ('PEAPL') following its
listing on the London Stock Exchange on 19 December 2002. This interim
commentary, therefore, covers a shorter than normal period, from launch until 31
March 2003.



In accordance with the prospectus, your manager has invested the proceeds of the
placing into a variety of hedge funds. These investments had a total market
value of GBP14.7 million at the end of the period.



The company has two benchmarks, the first is to achieve positive annual returns.
Against this, the Company's net asset value at 31 March 2003 was 97.19p, similar
to the net asset value of 97.21p after share issue expenses at launch. The
second benchmark is to produce significantly higher returns than the composite
European equity market over the medium term with less volatility of returns. In
the period, the FTSE Eurotop 300 Index in Euros fell by 13.78% as opposed to a
0.02% fall in the Company's net asset value. This was achieved with low
volatility of returns.



These last few months have witnessed some of the most volatile markets we have
seen in many years. The gradual move to conflict in the Middle East between the
coalition forces and the former regime in Iraq injected great uncertainty into
an already bleak global economic condition. In consequence, from the launch of
the Company until mid March 2003, when it became evident that the coalition
would invade Iraq with or without a further UN resolution, stock markets in
Europe were in a steep decline. News of the invasion removed the uncertainty on
the military front and stock markets rallied strongly. Occasional bouts of
weakness were seen, generally when the coalition forces hit resistance, but the
mood of the markets remained positive.



The war has concluded since the end of the period, the Iraqi oilfields have been
taken largely intact and Saddam Hussein and his regime have been ousted. Now
that this temporary diversion is over investors will return their attentions to
broader issues and specifically the problems that are besetting the global
economy. Many of these cannot be solved easily or quickly. The strong economic
growth of the 1990s is a fading memory and it is apparent that corporate
earnings growth will remain modest. In the wake of weak earnings growth, stock
markets are unlikely to produce consistent and significant gains. Volatility is
probably going to remain a dominant characteristic of market behaviour for some
time as the volume of shares traded stays relatively low.



Against this background of lacklustre, but volatile, stock markets, my Board
colleagues and I believe that investors will increase their appetite for funds
that actively control volatility while aiming to achieve positive returns in all
market conditions. PEAPL, of course, falls into this category and during its
brief life has demonstrated that a carefully selected portfolio of European
long/short hedge funds can produce good risk-adjusted returns even in the most
difficult of market conditions. I believe that, as more and more professional
and private clients sample hedge funds, there will be a growing realisation that
traditional investment cannot and does not satisfy all the needs of today's
investors. PEAPL is well positioned to take advantage of this change in
sentiment.


Christopher Clark

5 June 2003







STATEMENT OF TOTAL RETURN
(incorporating the profit and loss account*)
For the period from 9 July 2002 to 31 March 2003


                                                           9 July 2002   9 July 2002   9 July 2002
                                                           to 31 March   to 31 March   to 31 March
                                                                  2003          2003          2003
                                                                 £'000         £'000         £'000
                                                               Revenue       Capital         Total


Gains on investments                                                 -           401           401

Capital losses on currency movements                                 -         (310)         (310)
                                                               _______       _______       _______
Net gains                                                            -            91            91

Income - bank interest                                              20             -            20

Investment management fee                                            -          (56)          (56)

Other expenses                                                    (58)             -          (58)

Total return for period                                           (38)            35           (3)

Return per redeemable preference share                         (0.23)p         0.21p       (0.02)p



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


All capital and revenue items in the above statement derive from continuing
operations.  No operations were acquired or discontinued during the period.


Return per redeemable preference share is based on 16,300,000 redeemable
preference shares in issue throughout the period since launch on 19 December
2002.


There are no comparatives as this is the Company's first accounting period.






SUMMARISED BALANCE SHEET


                                                        At 31 March
                                                               2003
                                                              £'000

    Fixed assets - Investments at market value               14,742

    Current assets                                            1,215
    Current liabilities                                        (115)
    Net current assets                                        1,100

    Total net assets                                         15,842

    Share capital                                               163
    Share premium                                            15,682
    Capital reserves                                             35
    Revenue reserve                                             (38)
    Equity shareholders' funds                               15,842

    Net asset value per redeemable preference share          97.19p

    Number of redeemable preference shares in issue      16,300,000






CASH FLOW STATEMENT

                                                        9 July 2002
                                                        to 31 March
                                                               2003
                                                              £'000

Operating activities
Net cash outflow from operating activities                     (341)
Financial investment
Payments to acquire fixed asset investments                 (15,190)
Receipts on disposal of fixed asset investments                 886
Net cash outflow from investing activities                  (14,304)
Financing
Issue of redeemable preference share capital                 16,300
Share issue expenses                                           (455)
Net cash inflow from financing                               15,845

Increase in cash                                              1,200




NOTES



The Company is a closed-ended investment company incorporated and resident in
Guernsey.


The Company's investments are in hedge funds which may be denominated in or
exposed to either Euros or US dollars. The Company uses foreign exchange forward
currency contracts to seek to ensure that its net exposure to currencies other
than sterling does not at any time exceed 15 per cent. of the Company's net
assets.


This report has been prepared in accordance with applicable United Kingdom
accounting standards and with the Statement of Recommended Practice 'Financial
Statements of Investment Trust Companies' as it is considered best practice to
do so, although the Company, as an overseas company, does not meet all the
criteria set out in the SORP. The Company is not an investment trust.


These financial statements are not the Company's statutory accounts.  They are
unaudited. The interim report will be sent to shareholders and copies will be
made available to the public at the registered office of the Company and at the
address of the UK Administration Agent.


The Company was incorporated on 9 July 2002.  Business operations commenced on
19 December 2002.



SECRETARY, ADMINISTRATOR & REGISTERED OFFICE
Legis Corporate Services Limited
1 Le Marchant Street
St Peter Port
Guernsey
GY1 4HP


UK ADMINISTRATION AGENT

Cavendish Administration Limited
Crusader House
145-157 St John Street
London
EC1V 4RU


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