Interim Management Statement

Foreign & Colonial Eurotrust PLC
22 January 2008

               
Date:          22 January 2008

Contact:       Peter Jarvis
               F&C Management Limited
               020 7628 8000


                        Foreign & Colonial Eurotrust PLC
                         Interim Management  Statement
                     for the quarter ended 31 December 2007


Objective

The objective of Foreign & Colonial Eurotrust PLC is to achieve long-term growth
through a diversified portfolio of Continental European securities.


Summary of Performance


Attributable to equity shareholders                           31 December 2007       30 September 2007         % Change

Net assets                                                            £451.08m                £464.52m           -2.9
Net asset value per share                                              881.84p                 897.31p           -1.7
Share price                                                            797.00p                 812.50p           -1.9


Manager's Review

Performance

Your Company's net asset value per share (adjusted to reflect the dividends of
8.3 pence per share paid on 20 December 2007) fell by 0.9% compared with a rise
of 2.8% in the FTSE World Europe Index, excluding the UK and adjusted to
sterling. The Company's share price fell by 1.9% from 812.5p to 797.0p. The
discount widened slightly from 9.5% to 9.6%.  During the quarter the Company
bought back and cancelled 615,798 shares at a cost of £4,990,000.

Review of markets

The quarter saw equities in Continental Europe continue to be affected by the
global credit market turmoil and the threat of a recession in the US. In
particular, the banking sector was impacted by reports of further
sub-prime-related write-downs. Investors continued to favour government bonds
over risky assets and Euro government bond prices rose, though they lagged US
Treasuries as the European Central Bank (ECB) kept interest rates on hold.

European economic growth is slowing and in December the ECB lowered its Eurozone
GDP forecast for 2008 from 2.3% to 2%. Meanwhile, record oil prices and higher
food prices strengthened inflation, which at 3% was the highest for more than
six years. In these conditions, the ECB maintained interest rates at 4%.



The effects of the credit market problems and the threat of US recession were
reflected in tighter lending conditions and weaker economic data. Germany's Ifo
survey showed a decline in business confidence to its lowest level in almost two
years in December and a ZEW economic sentiment survey indicated a deterioration
in investor confidence. Mid month, the ECB combined with other central banks to
inject considerable cash into the money markets in an effort to encourage
stability and improve investor confidence. While this helped to alleviate
immediate concerns, the underlying issues are yet to be resolved.


Portfolio strategy

Against an increasingly uncertain environment we have maintained our focus on
seeking out companies with visible earnings and ongoing potential.  With this in
mind we continue to favour areas/firms geared into Asian domestic strength like
Folli Follie, a Greek mid-range jewellery manufacturer.  We topped up in
FLSmidth, which looks well placed to benefit from increased infrastructure spend
across the emerging markets, primarily through their Indian cement operations.
We established a position in the attractively valued Vivendi - a leader in
entertainment such as music, cinema and internet.  We are positive on its recent
tie-up with Electronic Arts believing the deal will help them better crystallise
value in their gaming business.

A new position was established in Speedel which focuses on the development of
drugs to treat cardiovascular and metabolic diseases, and has three products in
Phase II-III clinical trials. The most advanced drug, Tekturna, is the first in
a new class of renin inhibitors for cardiovascular disease and is partnered with
Novartis.



We continued to temper our exposure to mid caps by reducing our position in
Arques Industries.

Outlook

We remain cautious on the outlook for European shares as there appears little
scope in the short-term for the market making any headway.  On the positive
side, the European consumer still appears to be spending and the market is
bearing up relatively strongly against an increasingly volatile backdrop.   At
the corporate level strong balance sheets and cash flow generation should pave
the way for continued earnings growth in the region.





Peter Jarvis

January 2008





Ten Largest Equity Holdings


31 December 2007  30 September  Company                                                 % of total assets
                      2007      Sector (Country)

       1              (2)       Nokia                                                                 3.6
                                Technology hardware & equipment (Finland)

       2              (1)       Total                                                                 3.6
                                Oil & gas producers (France)

       3              (-)       Banco Santander                                                       2.5
                                Banks (Spain)

       4              (-)       Bayer                                                                 2.3
                                Chemicals (Germany)

       5              (-)       Suez                                                                  2.2
                                Electricity (France)

       6              (5)       Societe Generale                                                      2.1
                                Banks (France)

       7              (15)      Unilever                                                              2.1
                                Food producers (Netherlands)

       8              (4)       Roche                                                                 2.0
                                Pharmaceuticals & biotechnology (Switzerland)

       9              (6)       ENI                                                                   2.0
                                Oil & gas producers (Italy)

       10             (-)       Grupo Ferrovial                                                       1.9
                                Construction & materials (Spain)


Industrial Classification of Investments

                                                   31 December 2007            30 September 2007
                                             % of total investments       % of total investments

Financials                                                     21.8                         22.5
Consumer goods                                                 19.6                         14.9
Technology                                                     11.5                         11.4
Oil & gas                                                      10.9                         10.5
Basic materials                                                 9.9                          2.9
Industrials                                                     7.8                         18.7
Healthcare                                                      7.0                          8.4
Utilities                                                       6.1                          5.4
Consumer services                                               5.4                          5.3


Further Information

Further information, including monthly factsheets and daily net asset values
published since the end of the quarter, can be found on the www.fandc.com
website.

The Board is not aware of any significant events or transactions that have
occurred between 31 December 2007 and the date of publication of this statement
which would have a material impact on the financial position of the Company.


By order of the Board
F&C Management Limited
Secretary

22 January 2008


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