Interim Results

Foreign & Colonial Eurotrust PLC
25 May 2005

               
Date:           25 May 2005

Contact:        Davina Curling                  Lisa Stanley
                F&C Management Limited          Lansons Communications
                020 7628 8000                   020 7294 3692


                        FOREIGN & COLONIAL EUROTRUST PLC
                     Unaudited Interim Statement of Results
                     for the half-year ended 31 March 2005

Between the year end at 30 September 2004 and 31 March 2005, the net asset value
per share rose from 484.41p to 546.11p, an increase of 12.7%.  This compares
with a gain of 12.3% over the same period in the FTSE World Europe Index.

SUMMARY OF RESULTS

                                            31 March 2005       30 September 2004               % change

Net assets                                       £366.44m                £329.36m                  +11.3

Net asset value per share                         546.11p                 484.41p                  +12.7

Share price                                       471.50p                 417.00p                  +13.1


                                           6 months ended          6 months ended
                                            31 March 2005           31 March 2004

Revenue profit/(loss) per share                     0.45p                 (0.78)p


Chairman's Statement


Dear Shareholder

Between the year end at 30 September 2004 and 31 March 2005, the net asset value
per share rose from 484.41p to 546.11p, an increase of 12.7%.  This compares
with a gain of 12.3% over the same period in the FTSE World Europe Index which
excludes the United Kingdom and is adjusted for the movement in sterling against
the European currencies.

Review of Markets

European equities rallied strongly to early March but suffered thereafter to the
end of the period.  During the final quarter of 2004, investors displayed
renewed confidence following a third quarter dominated by concerns about soaring
oil prices, rising commodity prices, driven particularly by robust demand from
China, and increasing US interest rates (the Fed fund rate was increased five
times from a low of 1% in June 2004 to close the year at 2.25%).  Whereas such
concerns were sufficient to curb investor enthusiasm in the third quarter, the
final quarter of the year saw a reversal of some of these trends: the oil price
came off its record highs (although it remained strong), a clear cut Republican
victory in the US was well-received and some improving economic data, both
locally and in the US, also proved positive.

As 2005 began, the positive European equity momentum continued, with markets
supported by earnings reports broadly in line with expectations and by increased
corporate merger and acquisition activity.  Low interest rates and appealing
equity valuations added to the more positive backdrop. While markets continued
to rally during February, high oil prices and rising interest rates in the US
reared their heads once more, holding equities back in March.  Overall however,
the FTSE World Europe ex UK Index rose 12.1% in local currency terms.

Portfolio Strategy

The change in manager at the start of 2005 resulted in a rebalancing of the
portfolio. We continue to focus on companies that either offer undervalued
organic growth or that are set to benefit from restructuring, cost cutting and
other profitability improvements.  Following the very strong performance of
small and mid caps stocks over their larger counterparts through 2004, we do
believe that at some point in 2005 the emphasis will shift.  Nonetheless, there
remain a number of interesting opportunities in this area. In broad terms high
oil prices, the weak US dollar and the direction of US interest rates and
economic growth remain key in determining overall global and European market
performance.

Specific holdings in the information technology sector were bought during early
2005, with several new names in software and computer services companies as well
as adding to positions in some of the big hardware names.  Our expectation is
for a re-focus on capex spending by corporate Europe.  This should see growth
oriented areas such as IT benefit, particularly from their current historically
low levels.  We have also been active in the transport sector, with a specific
focus on shipping transportation.  We took a position in P&O Nedlloyd which
operates in the container shipping market and continues to benefit from strong
growth, fuelled by outsourcing to China; in our view the sector is ripe for
consolidation.

One of the key changes to the portfolio over the period has been the significant
reduction in the telecoms sector.  Following a positive run into the end of
2004, we felt that the best from the sector had been achieved in the near term.
The ability and willingness of telecom stocks to pay out free cash to investors,
through dividends and buy-backs, has been paramount to their appeal over the
past year.  However, with expectations for a pick-up in the capex cycle, it is
likely that less cash will be made available for distribution - with a potential
negative knock-on effect on their share prices.  Accordingly, we felt it an
opportune time to lock in profits and seek better opportunities elsewhere.

Elsewhere, we have reduced our position in basic industry sectors such as steel,
mining, paper and chemicals as earnings growth in these areas looks to be
slowing and demand growth from China, after such a strong run, is beginning to
ease.  Most would also be exposed to a weak US dollar. Meanwhile, in the oil
sector we have not been inclined to add to our holdings, as, despite high
prices, company valuations look full, and the risk appears to be on the side of
price weakening rather than rising much higher.

Finally, we have trimmed our stake in the banking sector.  We remain stock
specific and retain significant holdings in BNP Paribas and UBS amongst the
large banks and have taken sizable positions in National Bank of Greece and Bank
Austria, which we believe are set to continue to benefit from the immaturity of
the markets in which they operate.

The effective gearing of the Company was reduced to 0.3% during March from 6.5%
at the turn of the year. This was due to the weakness of the markets and the
uncertain outlook.   This is expected to be temporary. It is the policy of the
Board that the level of gearing should not exceed 20%.

Unaudited Figures

The revenue account for the period shows a small surplus.  The interim figures
should not be taken as indicative of the revenue return for the full year owing
to the fact that most European companies pay their annual dividend in the summer
months, while costs are incurred throughout.  There is a surplus this period
versus a loss at the interim stage last year owing to higher dividend income.


Douglas McDougall
May 2005



Unaudited Balance Sheet
                                                             31 March 2005    31 March 2004 30 September 2004
                                                                    £'000s           £'000s            £'000s
Fixed assets
Investments                                                        365,817          354,455           353,186


Current assets
Debtors                                                              6,668              557             2,065
Taxation recoverable                                                   201              379               304
Short-term deposits                                                  6,947                -                 -
Cash at bank                                                           409              899             1,281
                                                                    14,225            1,835             3,650

Current liabilities
Creditors: amounts falling due within one year
Foreign currency loans                                             (8,597)         (19,725)          (20,728)
Other                                                              (5,005)          (1,107)           (6,748)
                                                                  (13,602)         (20,832)          (27,476)



Net current assets/(liabilities)                                       623         (18,997)          (23,826)

Net assets                                                         366,440          335,458           329,360

Capital and Reserves
Called up equity share capital                                      16,775           17,666            16,998
Capital redemption reserve                                           2,036            1,145             1,813
Share premium                                                      123,749          123,749           123,749
Capital reserves                                                   220,050          189,959           183,271
Revenue reserve                                                      3,830            2,939             3,529
Total equity shareholders' funds                                   366,440          335,458           329,360

Net asset value per ordinary share - pence                          546.11           474.71            484.41


The geographical distribution of investments at 31 March 2005 was:

France - 28.5%; Switzerland - 19.8%; Germany - 19.1%; Netherlands - 8.1%;
Finland - 4.9%; Spain - 4.1%; Italy - 3.9%; Sweden - 2.9%; Belgium - 2.2%;

Eire - 2.0%; Greece -- 1.6%; Denmark - 1.5%; United Kingdom - 1.3%; Norway -
0.1%.

                              
Unaudited Statement of Total Return (incorporating the Revenue Account*)
for the 6 months to 31 March

                                                                    2005                                  2004
                                       Revenue      Capital        Total      Revenue      Capital       Total
                                        £'000s       £'000s       £'000s       £'000s       £'000s      £'000s          
        
Gains on investments                         -       41,105       41,105            -      28,195       28,195

Exchange (losses)/gains                      -        (361)        (361)         (36)         513          477

Income                                   2,089            -        2,089        1,201           -        1,201

Management fee                         (1,130)            -      (1,130)      (1,067)           -      (1,067)

Other expenses                           (387)         (14)        (401)        (389)        (13)        (402)

Net return before finance costs
and taxation                               572       40,730       41,302        (291)      28,695       28,404

Interest payable and similar
charges                                  (231)            -        (231)        (194)           -        (194)

Return on ordinary activities
before taxation                            341       40,730       41,071        (485)      28,695       28,210

Taxation on ordinary activities           (40)            -         (40)         (81)           -         (81)

Return attributable to equity
shareholders                               301       40,730       41,031        (566)      28,695       28,129


Dividend on ordinary shares                  -            -            -            -           -            -

Amount transferred
to/(from) reserves                         301       40,730       41,031        (566)      28,695       28,129

Return per ordinary share - pence         0.45        60.49        60.94       (0.78)       39.69        38.91

     
*    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
operations.

Unaudited Summarised Cash Flow Statement for the 6 months to 31 March


                                                                         2005            2004
                                                                       £'000s          £'000s

Net cash inflow/(outflow) from operating activities                     1,155           (594)
Interest paid                                                           (322)           (185)
Taxation paid                                                           (276)           (528)
Net cash inflow from financial investment                              22,293           3,921
Equity dividends paid                                                 (3,646)         (4,721)
Net cash inflow/(outflow) before use of liquid resources
and financing
                                                                       19,204         (2,107)
(Increase)/decrease in short-term deposits                            (6,938)           6,944
Net cash outflow from financing                                      (16,755)         (4,540)
(Decrease)/increase in cash during the period                         (4,489)             297


Notes

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 2004.

The Board recommends that no interim dividend payment be made.

The Interim Report and Accounts will be posted to shareholders in early June
2005.  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
24 May 2005


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