Interim Results

Foreign & Colonial PEP&ISA Inv Tst
26 April 2001


Date:       26 April 2001

Contact:    Julian Cane
            F&C Management Ltd                           020 7628 8000

            Louise Dolan
            Financial Dynamics                           020 7831 3113


             FOREIGN & COLONIAL PEP AND ISA INVESTMENT TRUST PLC

  Unaudited Interim Statement of Results for the six months to 31 March 2001


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

- The net asset value per share declined by 3.8% to 198.06p. This compared to
a fall of 10.5% in the FTSE All-Share Index, our benchmark.

- Over the past four years the total return per share (including gross
dividends) of 46.6% has exceeded the total return of 42.9% from the FTSE
All-Share.

- The interim dividend is increased 2.6% to 1.95p per share.

- The Company's buy-back policy has continued, 290,000 shares were bought back
between 30 September 2000 and 31 March 2001. This added approximately 0.2p per
share to net asset value.

- Overall, the portfolio should be well positioned to take advantage of
difficult market conditions.


SUMMARY OF RESULTS

                                       31 March               30 Sept.        %
                                           2001                   2000   change

Net assets                              £99.72m               £104.31m     -4.4

Net asset value per                     198.06p                205.99p     -3.8
share

Share price                             165.00p                173.00p     -4.6

                           6 months to 31 March   6 months to 31 March % change
                                           2001                   2000
Earnings per share                        2.29p                  1.89p    +21.2

Dividends per ordinary                    1.95p                  1.90p     +2.6
share



Chairman's Statement

The six months under review from 30 September 2000 to 31 March 2001 have been
difficult for stock markets as the FTSE All-Share Index fell 10.5%.  Against
this benchmark, the Company performed well as its net asset value per share
(NAV) only declined by 3.8% to 198.06p and the share price fell by 4.6% to
165.00p.

Capital Performance

Stock markets were very volatile and uncertain over the six months under
review as the speculation surrounding the technology and telecommunication
sectors continued to unwind and as growth in the major economies of the USA,
Continental Europe and Japan slowed.  As was noted in last year's annual and
interim reports, the investment manager had not been convinced by the
enthusiasts' claims for the 'new economy' sectors of technology and
telecommunications and consequently the portfolio consistently had a low
exposure to these sectors.  This had a negative impact on portfolio
performance when these sectors performed strongly, but since the speculative
bubble burst one year ago, the portfolio's relative performance against its
main benchmark, the FTSE All-Share Index has been very strong.

The recent sharp recovery is such that the longer-term performance record has
improved significantly.  It is encouraging to note that over the last four
years, a period encompassing the financial turmoil of 1998 and 2000/01 as well
as very strong performance in between, the total return per share (including
gross dividends) of 46.6% has exceeded the total return of 42.9% from the FTSE
All-Share. (Source: Datastream)

Dividend and Yield

The interim dividend is increased 2.6% to 1.95p (net) per share.  Underlying
inflation remains at a low level amounting to only 1.9% over the year to
March.  Against this background, and with a high initial yield on the shares,
this increase should be attractive as it builds on the record of past dividend
progression.  Together with the final dividend of 3.05p (net) from last year,
the increased interim gives a total dividend payment of 5.0p per share over
the last twelve months and a gross yield of 3.4% using the share price at 31
March 2001.  This is a material premium to the gross yield on the FTSE
All-Share Index of 2.8% at the same date. Gross investors, such as those who
hold their shares in a Personal Equity Plan or an Individual Savings Account
are entitled to a 10% tax credit on the net dividend payment.

Share Buy-Backs

During the six months under review the pace of the buy-back programme slowed
as the number of shares available for purchase in the market declined.
However, 290,000 shares (0.6% of the issued share capital) were bought back at
an average discount to asset value (including accumulated income) of almost
20%.  This added approximately 0.2p per share to net asset value per share.

Gearing

The Company had a loan outstanding at 30 September 2000 of £5.4m. This was
reduced significantly over the period through disposals as a less positive
view was taken on the short term direction of markets. At the end of the
period the loan was only £1.5m.The Company still has a committed facility for
up to £10m and this will be utilised further as and when market conditions are
considered appropriate.

Prospects

On the positive side, the economic outlook for the UK economy appears fair
with unemployment, inflation and interest rates all at relatively low levels.
Although the domestic economy appears sound, there are considerable external
threats.  The greatest concern is the apparently rapid slowing of the US
economy which could have a negative impact on the UK in a number of ways; most
obviously, there would be a reduction in demand from what is a major export
market.  This in itself would not be too dangerous, but a substantial
percentage of profit for UK listed companies is generated from US
subsidiaries, and US companies are significant investors in the UK.
Furthermore, if the US economy were to experience a more severe slow-down or
recession, then this would have an adverse effect on confidence in the UK and
elsewhere.  It is also concerning that two other mainstays of the world
economy are struggling; the Germany economy is stalling and Japan seems unable
to return to steady growth.

Against these reasons for caution, it should be remembered that the major
stock market indices are already more than 20% from their peaks and valuations
for many companies are returning to more attractive levels.  The sharp price
falls that many shares have experienced is causing the investment manager to
re-examine whether value is emerging in some technology or telecommunications
companies.  However, at present the balance of the portfolio has not been
altered and it retains a large exposure to more stable, predictable and mature
'old economy' companies.  Overall, the portfolio should be well positioned to
take advantage of difficult market conditions.


Graham Ross Russell
April 2001



Statement of Total Return (incorporating the Revenue Account*)


              6 months to 31 March 2001 6 months to 31 March 2000

                                   Revenue Capital  Total Revenue Capital Total
                                    £'000s  £'000s £'000s  £'000s  £'000s £'000s
                                                                          '000s
Gains and losses on investments          - (4,116) (4,116)       -   5,076 5,076
Exchange gains and losses on             -       4      4     (3)    (13)  (16)
currency balances
Income                               1,382       -  1,382   1,205       - 1,205
Management fee                       (124)   (124)  (248)   (130)   (130) (260)
Other expenses                        (60)     (2)   (62)    (62)     (3)  (65)

Net return before finance costs      1,198 (4,238) (3,040)   1,010   4,930 5,940
and taxation
Interest payable and similar          (37)    (37)   (74)     (8)     (8)  (16)
charges
Return on ordinary                   1,161 (4,275) (3,114)   1,002   4,922 5,924
activities before taxation
Taxation on ordinary activities        (4)       -    (4)     (3)       -   (3)
Return attributable to equity        1,157 (4,275) (3,118)     999   4,922 5,921
shareholders
Dividends on ordinary shares         (973)       -  (973)   (978)       - (978)
(equity)
Amount transferred to/(from)         184   (4,275) (4,091)      21   4,922 4,943
reserves
Return per ordinary share - pence   2.29    (8.48) (6.19)    1.89    9.31 11.20


  * 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.



Unaudited Balance Sheet

                                       31 March           31 March      30 Sept
                                                  2001        2000         2000
                                                £'000s      £'000s       £'000s
Fixed assets
Investments                                    100,919     108,478      110,059

Current assets
Debtors                                            695         593          724
Taxation recoverable                                25          38           27
Cash at bank and short-term deposits               770         424          728
                                                 1,490       1,055        1,479

Current liabilities
Creditors: amounts falling due within
one year
Short-term loans                               (1,500)     (3,850)      (5,400)
Other creditors                                (1,187)     (1,850)      (1,824)
                                               (2,687)     (5,700)      (7,224)
Net current liabilities                        (1,197)     (4,645)      (5,745)
Net assets                                      99,722     103,833      104,314

Capital and reserves
Called up equity share capital                  12,587      12,870       12,660
Capital redemption reserve                       2,170       1,887        2,097
Share premium                                   16,394      16,394       16,394
Special reserve                                 19,769      21,724       20,270
Capital reserves                                47,775      50,117       52,050
Revenue reserve                                  1,027         841          843
Total shareholders' funds                       99,722     103,833      104,314
Net asset value per ordinary share
- pence                                         198.06      201.69       205.99



Geographical distribution of the investments at 31 March 2001 was:
UK  90%
Europe  10%



Unaudited Cash Flow Statement


                                                            6 months   6 months
                                                                  to         to
                                                            31 March   31 March
                                                                2001       2000

                                                              £'000s     £'000s
Net cash inflow from operating activities                        952        908
Interest paid                                                   (72)          -
Total tax recovered                                                5          4
Equity dividends paid                                        (1,536)    (1,573)
Net cash inflow/(outflow) from purchases and sales of          4,597       (19)
investments
Net cash inflow/(outflow) before use of liquid resources       3,946      (680)
and financing
Decrease in short-term deposits                                  400          -
Net cash (outflow)/inflow from financing                     (3,905)        795
Increase in cash                                                 441        115



The Directors have declared an interim dividend of 1.95p (2000: 1.90p) per
share payable on 4th June 2001 to shareholders registered on 11th May 2001.

The Interim Report will be posted to shareholders by 8th May 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
25th April 2001