Interim Results

F&C Capital & Income Inv Tst PLC
30 April 2003

Date:          30 April 2003

Contact:       Julian Cane

F&C Management Ltd     020 7628 8000

Emma Chilvers

Lansons Communications 020 7294 3606



                  F&C CAPITAL AND INCOME INVESTMENT TRUST PLC

                (formerly F&C PEP and ISA Investment Trust PLC)

 Unaudited Preliminary Statement of Results for the six months to 31 March 2003




Company Objective

To secure long-term capital and income growth from a portfolio consisting mainly
of FTSE All-Share companies and leading European companies.

Highlights


  • Interim dividend increases by 2.5% to 2.05 pence per share.

  • Over the last 5 years, net asset total return per share of -17.8% is
    considerably better than the total return of -26.2% from the FTSE All-Share
    Index.

  • At the AGM earlier in the year, those voting decided:


      • not to liquidate the Company,


      • to change the name to F&C Capital and Income Investment Trust,

      • that the share buy-back programme should continue. This has meant that
        the Company's shares did not stand at any material discount to net asset
        value over the last six months.








SUMMARY OF UNAUDITED RESULTS

                                                              31 March             30 Sept                 %
                                                                  2003                2002            change

Net assets                                                     £66.36m             £70.06m              -5.3

Net asset value per share                                      133.31p             140.96p              -5.4

Share price                                                    133.00p             135.50p              -1.8


                                                        6 months to 31      6 months to 31                 %
                                                            March 2003          March 2002            change
Earnings per ordinary share                                      1.91p               2.11p              -9.5

Dividend per ordinary share                                      2.05p               2.00p              +2.5




F&C CAPITAL AND INCOME INVESTMENT TRUST PLC

Unaudited Interim Statement of Results for the six months to 31 March 2003


Chairman's Statement,

Stock markets have continued to be difficult during the six months under review
from 30 September 2002 to 31 March 2003 as the FTSE All-Share index fell 3.7%.
Your Company had mixed results against this benchmark as the net asset value per
share fell by 5.4% while the share price declined by 1.8%. The interim dividend
is increased by 2.5% to 2.05 pence per share.



Capital Performance

Share prices have been very volatile during the period, with gyrations being
caused by the situation in Iraq, economic and company specific news. After steep
and prolonged falls in stock markets since their peaks in 2000, there was a
strong rally during October and November of last year, partly as valuations
looked more attractive, and partly as it seemed as if conflict in Iraq could be
avoided. The shares that rose fastest were in general those that had performed
worst as markets had fallen. Between the end of September and the end of
December, the Telecommunication Services and Software sectors rose 30% and 28%
respectively, while some more defensive sectors, such as Beverages, Food, Retail
and Tobacco actually fell. Due to the positioning of the portfolio, this was
negative for performance. During the second quarter from January to March, the
stock market returned to its previous trend, with the FTSE All-Share declining
by 8.3%; your Company's net asset value per share fell in line with this. It
should be remembered that although the cautious structure of the portfolio
resulted in performance lagging the index over six months, it has brought about
substantially better performance than the index over the longer term. Over the
last five years, net asset total return per share (including gross dividends) of
-17.8%, whilst disappointing, is nonetheless considerably better than the total
return of -26.2% from the FTSE All-Share index (Source: Datastream).



Dividend

As a result of difficult economic and business conditions, many companies are
finding it hard to maintain or grow profits. This in turn has led many companies
to cut their dividends, with the consequence that the underlying implied
dividend on the FTSE All-Share index has fallen by 1.3%. The 2.5% increase in
the interim dividend compares favourably against this background. Although there
has been a fall in revenue and earnings during the first half, mainly due to the
timing of dividend payments, internal estimates indicate that both revenue and
earnings will show a modest increase for the full year. The dividend increase
builds on the Company's record of steady progression over the last ten years.



Discount to Net Asset Value and Share Buy-Backs

Following the commitment given to shareholders in September last year, the share
buy-back programme has continued to ensure that the Company's shares do not
stand at any material discount to net asset value. Over the half-year, 640,000
shares were purchased at an average discount to asset value (including
accumulated income) of almost 3.7%. The average discount over the period was
only 1.8%. The share price stood at a premium to net asset value for some
periods and in order to meet demand for the shares, 718,000 new shares were
issued. These were issued at a sufficient premium to net asset value to ensure
that existing shareholders were not diluted. By having the ability to issue
shares at a premium, and purchase when at a discount, the Board has been able to
keep the share price trading fairly closely in line with the underlying net
asset value.

The Company's shares were trading on 30 September 2002 at a discount to net
asset value of 3.9%, and this had narrowed to a discount of 0.2% at 31 March
2003. The result of this was that the share price declined less than the net
asset value.







F&C CAPITAL AND INCOME INVESTMENT TRUST PLC

Unaudited Interim Statement of Results for the six months to 31 March 2003





Results of the AGM

At the Company's AGM held earlier this year, there were a number of important
votes. The most important was that 97.5% of those voting decided not to
liquidate the Company, and as a result it will continue in its current form.
Shareholders also voted to change the name of the Company to F&C Capital and
Income Investment Trust and to allow the share buy-back programme to continue.
These decisions should be beneficial in helping to attract new shareholders and
in ensuring the share price does not trade at any material discount to net asset
value.



Outlook

The military campaign in Iraq appears to be all but over and this is clearly
positive as it will help to lift some short-term uncertainty. It does, however,
mean that attention is likely to switch back to the economic and business
fundamentals and these have continued to deteriorate. It is difficult at the
moment to separate the indirect effects of the war on the economy through
consumer and business confidence, and the slowdown caused by other reasons.
Regardless of the cause, weakening economies in the UK and elsewhere will be
adverse for most companies, particularly at a time when company profitability is
at its lowest for nine years. On the more positive side, the sharp falls that
stock markets have experienced in recent years, have led valuations to be more
attractive than for many years, so share prices are already discounting a
considerable amount of uncertainty and difficulty. Many companies' dividend
yields, for example, are now greater than bank base rates and government bond
yields, and this has historically provided very good support for equities.







Graham Ross Russell

April 2003




F&C CAPITAL AND INCOME INVESTMENT TRUST PLC

Unaudited Interim Statement of Results for the six months to 31 March 2003

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

6 months to 31 March 2003 6 months to 31 March 2002

                                                Revenue       Capital      Total        Revenue       Capital      Total
                                                 £'000s        £'000s     £'000s         £'000s        £'000s     £'000s
Gains and losses on                                   -       (3,639)    (3,639)              -        10,402     10,402
investments

Exchange gains and losses on                        (4)            11          7              4           (4)          -
currency balances

Income                                            1,156             -      1,156          1,261             -      1,261

Management fee                                     (82)          (82)      (164)          (112)         (112)      (224)

Other expenses                                    (115)           (4)      (119)           (89)           (3)       (92)

Net return before finance costs and                 955       (3,714)    (2,759)          1,064        10,283     11,347
taxation

Interest payable and similar                        (4)           (4)        (8)            (2)           (2)        (4)
charges

Return on ordinary                                  951       (3,718)    (2,767)          1,062        10,281     11,343
activities before taxation

Taxation on ordinary activities                     (5)             -        (5)            (5)             -        (5)

Return attributable to equity                       946       (3,718)    (2,772)          1,057        10,281     11,338
shareholders

Dividends on ordinary shares (equity)           (1,011)             -    (1,011)          (986)             -      (986)

Amount transferred (from)/to                       (65)       (3,718)    (3,783)             71        10,281     10,352
reserves

Return per ordinary share -                        1.91        (7.51)     (5.60)           2.11         20.53      22.64
pence


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

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









F&C CAPITAL AND INCOME INVESTMENT TRUST PLC

Unaudited Interim Statement of Results for the six months to 31 March 2003

Unaudited Balance Sheet
                                                  31 March 2003    31 March 2002       30 Sept  2002
                                                         £'000s           £'000s              £'000s
Fixed assets

Investments                                              68,366           97,966              70,419

Current assets

Debtors                                                     509              607                 492

Taxation recoverable                                         14               16                  19

Cash at bank and short-term                                 124              255                 917
deposits
                                                            647              878               1,428
Current liabilities
Creditors: amounts falling due
within one year:

Short-term loans                                        (1,500)                -                   -

Other creditors                                         (1,153)          (1,238)             (1,786)
                                                        (2,653)          (1,238)             (1,786)

Net current liabilities                                 (2,006)            (360)               (358)

Net assets                                               66,360           97,606              70,061

Capital and reserves
Called up equity share capital                           12,445           12,425              12,425
Capital redemption reserve                                2,492            2,332               2,332
Share premium                                            17,190           16,394              16,394
Special reserve                                          17,810           18,705              18,704
Capital reserves                                         15,473           46,523              19,191
Revenue reserve                                             950            1,227               1,015
Total shareholders' funds                                66,360           97,606              70,061
Net asset value per ordinary
share - pence                                            133.31           196.39              140.96

Geographical distribution of the investments at 31 March 2003 was:

UK 91%

Europe 9%





F&C CAPITAL AND INCOME INVESTMENT TRUST PLC

Unaudited Interim Statement of Results for the six months to 31 March 2003





Unaudited Cash Flow Statement
 

                                                           6 months to                        6 months to
                                                         31 March 2003                      31 March 2002
                                                                £'000s                             £'000s
Net cash inflow from operating
activities                                                         841                                983
Interest paid                                                      (7)                                (4)
Total tax paid                                                     (1)                                (4)
Equity dividends paid                                          (1,606)                            (1,578)
Net cash (outflow)/inflow from
purchases and sales of investments                             (1,523)                                52

Net cash outflow before use of
liquid resources and financing                                 (2,296)                              (551)

Decrease in short-term deposits                                    600                                400

Net cash inflow from financing                                   1,496                                 79

Decrease in cash during the period                                (200)                               (72)




The interim financial statements have been prepared on the basis of the
accounting policies set out in the Company's financial statements at 30
September 2002.

The Directors have declared an interim dividend of 2.05p (2002: 2.00p) per share
payable on 30 May 2003 to shareholders registered on 9 May 2003.

The Interim Report will be posted to shareholders in mid-May 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

29 April 2003


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