Interim Results

F&C Pacific Inv Tst 
27 September 2001



Date: Embargeod 7.00am Thursday 27 September 2001

Contact:Charles Brock, F&C Management Limited, tel: [phone]/Emma
Chilvers, Lansons Communications, tel: [phone]


                           F&C PACIFIC INVESTMENT TRUST PLC

                       Unaudited Preliminary Statement

                     for the half year ended 31 July 2001



SUMMARY OF RESULTS
                                                     31 July  31 January      %
                                                        2001        2001 change

Consolidated total assets less current liabilities
(excluding loans)                                   £338.51m    £424.83m  -20.3
                                                    
Consolidated net assets attributable to equity
shareholders                                        £276.39m    £342.45m  -19.3
                                                    
Consolidated net asset value per share               127.56p     155.72p  -18.1
Share price                                          103.50p     124.75p  -17.0



EXTRACTS FROM CHAIRMAN'S STATEMENT

Market conditions in Asia and Japan have continued to be disappointing. In the
six months ended 31 July 2001 our benchmark, which is a combination of 50%
FTSE Japan and 50% MSCI AC Asia Pacific Free ex-Japan fell by 14.0%, with the
Japanese market falling by 13.1% and the rest of Asia by 14.9%. The Company's
net asset value per share fell by 18.1% and the share price fell 17.0%.

This under performance against the benchmark was due to two principal factors
- stock selection in Japan, where our positions in certain electronics stocks
performed poorly, and the fact that the Company, despite reducing overall
borrowing, remained geared during a period of falling markets.

Markets and Investment Policy

Following the poor performance of markets in our region during 2000, the
calendar year 2001 started brightly, with rallies during January due to
investor expectations that the bad news was 'in the price'. However, markets
began to slide again as we entered the Company's new financial year, with a
particularly large fall in July. During the six months there was frequent
evidence that the tide had turned, which led us to maintain a positive
investment strategy towards the region, and again and again expectations have
been disappointed.

Asian markets cannot be immune from global trends and evidence that economic
growth was slowing sharply throughout the world led to a slide in all major
markets during the first half of the year. Interest rate cuts in the US, and
more recently in Europe, came too late to halt this slowdown. Economic
weakness was led by sharp cut backs in investment spending by companies and
this had a particularly hard impact on the electronics sector that is so
important in both the Japanese and other Asian stock markets.

The deterioration in the Japanese economy, evident at the start of the year,
accelerated. It has become clear that, if Japan is to recover, the problems in
the domestic economy, particularly within the banking system, have to be
addressed. The political will to tackle this issue has been lacking since the
problems first emerged a decade ago. Japanese politicians tried to spend their
way out of recession, building up massive debts in the process, but failed to
tackle underlying problems. With the election of the reform-minded and popular
Mr Koizumi as Prime Minister, there were hopes that serious reform would
begin; however a lack of prompt action left markets disappointed again.
Although interest rates in Japan remained near zero, the Bank of Japan did not
adopt a policy of quantitatively easing monetary policy. The fact that they
too were waiting for the politicians to act led to a policy stand off that was
one of the principal causes of the market fall. Electronics shares fell
significantly during the period. Telecommunications and banking shares also
led the market lower.

Markets in the rest of Asia also continued to lose ground over the past six
months. Economic statistics were generally extremely weak as a result of the
collapse in demand for exports, particularly of electronics. Asian economies
remain highly sensitive to the global economy so, as global economic
conditions deteriorated, so did sentiment towards Asian stock markets. All
major markets in the region fell, with the worst affected being Taiwan, which
lost nearly 30% in sterling terms. It is no coincidence that the weighting of
the electronics sector in the Taiwanese market is the highest in the region,
at over 60%.

After the large market falls in 2000, we adopted a positive stance in
constructing the portfolio. The election of Mr Koizumi, evidence that
corporate Japan was willing to change and a succession of interest rate cuts
around the world, coupled with relatively low valuations in our markets, all
contributed to this positive view. Therefore the Company remained geared
during the last six months. Within Japan and the rest of Asia the portfolio
remained tilted towards recovery.

Revenue

Revenue for the half year was lower than for the corresponding period last
year. This was due to lower income from dividends and to the sale of our
office and retail property investments in Perth. In line with last year, there
will be no interim dividend.

Share buy backs

At the Annual General Meeting in May, shareholders renewed the buy back
authority, which we have continued to utilise. Over the past six months we
have bought back and cancelled 3,250,000 shares or 1.5% of the issued share
capital at discounts to net asset value of between 15.0% and 21.6%.

Outlook

The past eighteen months has been a difficult period for investors in the
region and your Company has suffered a steep fall in net asset value and share
price. With hindsight, investment policy was not sufficiently conservative.
However, your Board and managers feel that now would not be the right time to
change tack. Expectations for reform in Japan are extremely low but Mr Koizumi
has the popularity and inclination to lead a radical restructuring. If he can
overcome political resistance and persuade the Bank of Japan that he is
serious then the Japanese economy and stock market could be approaching a
major turning point. F&C believes that expectations for global economic
conditions in 2002 will start to improve and that this would be a major
positive for the rest of Asia.

The tragic events in the United States during September have led to steep
falls in markets around the world. Growth is likely to slow further in all
major economies and recovery will be further delayed. On the other hand,
central banks around the world have reacted to the crisis by pouring liquidity
into the financial system.

The portfolio remains structured such that the Company will benefit
significantly from a recovery in regional markets.

Christopher Purvis

September 2001





CONSOLIDATED BALANCE SHEET
                                                31 July   31 July   31 January
                                                   2001      2000         2001

                                                 £'000s    £'000s       £'000s
Fixed assets
Tangible assets                                   1,206    14,354        1,397
Investments                                     298,296   482,591      377,002
                                                299,502   496,945      378,399
Current assets
Investments - freehold land held for resale       7,865     8,887        8,855
Debtors                                           3,002    41,975       18,505
Cash at bank and short-term deposits             31,770    44,987       29,489
                                                 42,637    95,849       56,849
Current liabilities
Creditors: amounts falling due within one
year:
Foreign currency loans                         (19,646)  (40,826)     (36,821)
Yen Convertible Bonds                                 -  (60,934)            -
Other                                           (3,626)  (17,476)     (10,423)
                                               (23,272) (119,236)     (47,244)
Net current assets/(liabilities)                 19,365  (23,387)        9,605
Total assets less current liabilities           318,867   473,558      388,004
Creditors: amounts falling due after more
than one year:
Foreign currency loans                         (42,140)  (45,700)     (44,143)
Provision for liabilities and charges             (337)   (2,875)      (1,410)
                                               (42,477)  (48,575)     (45,553)
Net assets                                      276,390   424,983      342,451

Capital and reserves
Called up share capital                          54,167    54,979       54,980
Capital redemption reserve                        3,404     2,591        2,591
Share premium                                         5         -            5
Capital reserves                                207,664   353,582      274,010
Revenue reserve                                  11,150    13,831       10,865
Total equity shareholders' funds                276,390   424,983      342,451

Net asset value per share (basic)               127.56p   193.25p      155.72p

Net asset value per share (diluted)                   +   191.92p            +


+ There is no dilution.

Geographical distribution of consolidated total assets less current
liabilities (excluding loans) at

31 July 2001 was Japan 51.2%, Australia 13.5%, Hong Kong & China 10.5%, Taiwan
6.7%,

Singapore 5.4%, South Korea 5.4%, Other 3.7%, Europe 1.9%, India 1.7%.





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

for the half year ended 31 July 2001.

                         6 months to 31 July 2001    6 months to 31 July 2000
                         Revenue  Capital    Total  Revenue   Capital     Total
                         £'000's                    £'000's
                                  £'000's   £'000s            £'000's    £'000s
Gains/(losses) on              -       21       21        -      (20)      (20)

tangible fixed assets
Losses on fixed asset          - (63,524) (63,524)        -  (106,308) (106,308)
investments                               
Exchange gains and         (189)     (52)    (241)     (67)   (5,532)   (5,599)
losses
Income                     4,218        -    4,218    6,692         -     6,692
Management fee           (1,411)        -  (1,411)  (1,466)         -   (1,466)
Other expenses           (1,061)     (36)  (1,097)  (1,630)      (28)   (1,658)
Net return before          1,557 (63,591) (62,034)    3,529 (111,888) (108,359)
finance

costs and taxation
Interest payable and       (887)        -    (887)  (1,443)         -   (1,443)
similar charges
Return on ordinary           670 (63,591) (62,921)    2,086 (111,888) (109,802)
activities before
taxation
Taxation on ordinary       (385)    1,351      966    (559)   (2,875)   (3,434)
activities
Return attributable to       285 (62,240) (61,955)    1,527 (114,763) (113,236)
equity shareholders
Dividend on ordinary           -        -        -        -         -         -
shares
Amount transferred to/       285 (62,240) (61,955)    1,527 (114,763) (113,236)
(from) reserves
Return per ordinary         0.13  (28.43)  (28.30)     0.68   (51.41)   (50.73)
share (basic) - pence

* 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.







Consolidated Cash Flow Statement for the half year ended 31 July 2001
                                               6 months to 31    6 months to 31
                                                    July 2001         July 2000
                                                       £000's            £000's

Net cash inflow from operating activities               1,408             4,759
Interest paid                                           (759)             (497)
Total tax paid                                          (392)             (241)
Net cash inflow from purchases and sale of             27,659             4,187
investments
Equity dividends paid                                 (2,307)           (2,359)
Net cash inflow before use of liquid                   25,609             5,849
resources and financing
Decrease in short-term deposits                         3,547               242
Net cash (outflow)/inflow from financing             (20,955)             2,312
Increase in cash                                        8,201             8,403



During the half year to 31 July 2001 the Company purchased for cancellation
3,250,000 ordinary shares at a total cost of £4.1m.

The interim financial statements have been prepared on the basis of the
accounting policies set out in the Group's financial statements at 31 January
2001.

The Board recommends that no interim dividend payment be made (31 January
2001: 1.05p per share and 31 July 2000: nil per share).

The Interim Report will be posted to shareholders on or around 8 October 2001.
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

26 September 2001