Interim Management Statement

Hansa Trust PLC
25 January 2008


Hansa Trust PLC

Quarter ended 31 December 2007



Investment Managers Report


During the three months under review, the time weighted return of the portfolio
was -4.74% (including income and after the payment of the interim dividend of
3.5p per share) and -5.84% excluding the investment in Ocean Wilsons. The
Ordinary and 'A' Ordinary share prices fell by 17.73% and 17.98% respectively as
both classes of shares traded to a wider discount to their net asset value. This
compares with a rise of 1.68% in the company's benchmark and a fall of 0.30% in
the FTSE All-Share Index (including income) over the quarter. The major negative
contributors to the 49.3 pence per share loss were BRIT Insurance Holdings
-13.0p and Ocean Wilsons Holdings -7.0p. The largest positive contributors were
BG group +8.9p and resolution +6.0p.

Quarter to 31 December 2007        Ordinary Shares         'A' Ordinary Shares
                               Quarter    Year to Date    Quarter  Year to Date
NAV Total Return                 -5.04%          -4.55%    -5.04%        -4.55%
Share Price Total Return        -17.39%         -24.73%   -17.63%       -17.28%



For much of the past six months the major company indices, led by big cap
international stocks like the miners and oil-relateds, have suggested that the
credit squeeze was primarily limited to the financial markets. This was
reflected by the sell-off in bank shares as the underlying problems of
uncertainty about the true value of asset-backed securities and counter party
risk lingered on, leaving banks reluctant to lend to one another, with the
resultant lack of liquidity in financial markets. In the middle of December, in
an unprecedented move, the Bank of England, US Federal Reserve, European Central
Bank, Bank of Canada and Swiss National Bank provided facilities worth billions
of dollars to the money markets by way of auctions on much more flexible terms
as to the mix of the securities offered by the banking fraternity as collateral.
Since September, Middle Eastern and East Asian sovereign wealth funds have made
a succession of investments in four US banks, thereby strengthening their
balance sheets, namely Bear Stearns, Citigroup, Morgan Stanley and Merrill
Lynch. However it has become increasingly clear that it may take a long time for
the banks to restore their mutual trust and confidence in one another and it has
become increasingly fanciful to assume that the deleveraging in the banking
sector, the very engine for credit creation, would not have an effect on the
broader economy.


Stockmarkets took fright early on this month amid deepening fears of a recession
in the world's largest economy, after a closely watched report showed American
unemployment climbing to its highest level in two years while the ISM Index of
manufacturing activity contracted sharply. Here in the UK, fears that the credit
crunch was also spilling over into the wider economy were highlighted by the
Bank's report on tightening credit conditions as banks are curtailing lending
activity and tightening lending standards, while Bank of England data showed
mortgage approvals fell for a fifth month in a row in November, hitting their
lowest levels in almost three years. The pressure on the housing market is
intensifying as consumers find both the availability and price of mortgage debt
off-putting against a background of dwindling disposable income, as a result of
five interest rate increases between June 2006 and July 2007, along with
increases in energy and food prices. In a nutshell, after the credit-fuelled
boom in domestic demand and asset prices, the UK economy now faces a hangover,
with slowing credit growth, tightening lending standards, falling property
prices and the spectre of rising unemployment. The December study by the
Recruitment and Employment Confederation and KPMG found that permanent job
appointments have risen at the weakest rate for four and a half years as
businesses become more nervous about the credit squeeze, while billings for
temporary workers increased at their slowest pace for twenty months, adding to
speculation that the labour market could be reaching its peak. It is likely that
the corporate sector will react to any slowdown by taking action to protect
margins and profit share in the economy by shedding labour and boosting
productivity, which could herald redundancies in some sectors. Any resultant
rise in unemployment could produce both a sharper slowdown and policy response
from the MPC.


Even though a semblance of normality has recently returned to the interbank
market, the knock-on effects to the real economy of the credit crunch appear to
becoming more severe. The January trading updates among the UK retailers all
show a slowing consumer trend as well as demonstrating the high level of
operational gearing in the sector. Sectors deemed exposed to the credit crunch
such as property and consumer related stocks have been hammered, while investors
are swift to punish any company whose figures or trading outlook disappoints,
particularly in the case of smaller illiquid stocks.


Significant Holdings - either those more than 5% of Gross Assets (inc.Income) or
Top Ten Holdings (%):

Ocean Wilsons Holdings                                                    31.2
Resolution                                                                11.3
BG Group                                                                   3.4
BRIT Insurance Holdings                                                    2.9
Scottish&Southern Energy                                                   2.8
BP                                                                         2.6
Eni                                                                        2.3
Ark Therapeutics                                                           2.3
BHP Billiton                                                               2.2
Hargreaves Services                                                        2.1

                                                       Total              63.1

No. of Holdings                                                             58



Analysis of Assets (£m):

Total Investments                                                        237.9
Net current assets/(liabs)                                                -2.3
Total assets                                                             235.6
Short-term borrowing                                                       2.4
Net assets (ex Income)                                                   233.2

Gearing                                                                   1.00%
Net Cash                                                                   0.0



Sector Analysis (%):

Strategic                                                                 31.2
Smaller Cap / AIM                                                         22.5
Natural Resources                                                         13.0
Closed Life Funds                                                         11.3
Property (inc.Commitments)                                                 7.7
Large Cap                                                                  6.0
Utilities                                                                  4.7
Insurance                                                                  3.9
Mid Cap                                                                    3.0
Investment Trusts                                                          1.6
Hedge                                                                      0.2

of which Unquoted                                                          5.7


There are NO Listed Investment Company holdings where the investee company has a
policy that does not limit them to investing less than 15% of gross assets in
other listed Investment Companies and there are no material changes to the most
recent price and Net Asset Value(%):



Share Price on £100 (£):                    Ordinary          'A' Ordinary
1 Year                                           88.40                   97.10
3 Years                                         170.20                  175.60
5 Years                                         366.20                  367.00
10 Years                                        360.70                  371.90



Performance Statistics (%):       Fin.YTD    1 Yr    3 Yrs   5 Yrs    10 Yrs
Net Asset Value (Ex Income)         -5.7      7.7    82.9    225.2    251.4
Tot.Return on Net Asset Value(#)    -4.5      9.0    90.1    247.2    301.0
Benchmark                            5.1      6.8    20.1     33.9     74.6
Share Price - Ordinary             -25.6    -11.6    70.2    266.2    260.7
Tot.Return on Ordinary Shs (#)     -24.7    -10.5    76.9    293.2    317.2
Share Price - 'A' Ordinary         -18.3     -2.9    75.6    267.0    271.9
Tot.Return on 'A'OrdinaryShs(#)    -17.3     -1.6    82.9    295.0    334.0
FTSE All-Share Index                 0.1      2.0    36.3     73.6     36.3
Tot.Return on FTSE All-Share (#)     2.5      5.6    51.7    108.5     89.3




Market Data   Share Price   NAV Ex.Inc.(p)  (Discount) / Premium   Gross Yield
                  (p)                               (%)                (%)
Ordinary           835.00         971.65                  (14.1)           1.4
'A' Ordinary       835.00         971.65                  (14.1)           1.4



FSA - Standardised Performance Information

12 mths Period (Bid to Bid)   2002Q4 to 2003Q4 to 2004Q4 to 2005Q4 to 2006Q4 to
                                 2003Q4    2004Q4    2005Q4    2006Q4    2007Q4
Total Return
%age - Ord                      41.20     59.34     49.79     27.54    -11.15
Total Return
%age - A.Ord                    39.45     54.93     45.22     23.39     -2.25





Fund Details

Fund         John Alexander of Hansa Capital Partners LLP
Manager:
Launch Date: 1912 (name changed to Hansa Trust in October 2001)
Investor     UK Growth
Sector:
Capital      8,000,000 Ordinary shares of 5p
Structure:   16,000,000 'A' non voting Ordinary shares of 5p
Year End:    31st March
Dividend:    Final - ex date June, payment date August
             Interim - ex date and payment date December
Directors:   R.A. Hammond-Chambers, Chairman
             W.H. Salomon, Lord Borwick,
             Prof. G.E. Wood
Ownership    Board of Directors and connected parties own or are interested in
             52.5% of the Ordinary shares.
Managers:    Hansa Capital Partners LLP - authorised and regulated by the
             Financial Services Authority (FSA)
Management   Maximum of 1.00% per annum (payable by the Trust)
Fee:
Benchmark:   3 year rolling average composite of 5 year Govt.Bond Yield (with
             interest being re-invested semi-annually) + 2% from 1 April 2003
Investment   To achieve growth of shareholder value Hansa Trust PLC invests in a
Goals,       portfolio of special situations, where individual holdings or
Policy and   specific sectors may constitute a significant proportion of the
Benchmark    portfolio or that of the equity of the companies concerned. This
             investment approach may produce returns which are not replicated by
             movements in any market indices. Performance is measured against an
             absolute benchmark derived from the three-year average rolling rate
             of return of the five year government bond with interest being
             re-invested semi-annually, plus 2 percent. Investments are intended
             to add value over the medium to longer term through a non-market
             correlated, conviction based investment style.
FSA          It is the stated policy of the Board not to limit investments in
Investment   Investment Companies to less than 15% of gross assets as detailed
Restriction: in the FSA Listing Rules Chapter 21.20 (i)



# NOTES: -
Total Returns on Net Asset Value (Ex.Income) and Shares has been sourced from
unaudited internal management information and from the Close WINS Investment
Trusts database, and assumes that all dividends are re-invested.
Other than Standardised Performance Information prices quoted are mid price and
performance returns are mid to mid.


Net Asset Value per share is calculated in accordance with the guidelines of the
Association of Investment Companies in that income received by the company in
the period since the last annual accounts is excluded. Total net assets are
stated inclusive of income received. Hansa Trust PLC is a member of the
Association of Investment Companies.


Risk warning The information provided here has been issued by Hansa Capital
Partners LLP, which is regulated by the Financial Services Authority. Share and
performance information has been compiled by Hansa Capital Partners LLP. Past
performance is not necessarily a guide to future performance as market and
exchange rate movements may cause the value of shares and income from them to
fall as well as rise, and an investor may not get back the amount invested.
Investment Trust share prices may not fully reflect underlying net asset values.
The spread on Investment Trusts typically averages 1-2% each way on the
mid-market price (the price halfway between the bid and offer prices). However,
investors wishing to invest in Hansa Trust 'A' shares should note that the
market for these shares is at times quite illiquid which leads to a large spread
between the buying and the selling prices, the bid to offer spread. For example,
for the 'A' shares, as at 31 December 2007 the bid to offer spread was 2.42%*. *
Source: Bloomberg






                      This information is provided by RNS
            The company news service from the London Stock Exchange