Interim Results

F&C PEP & ISA Investment Trust PLC
1 May 2002


Date:     1 May 2002

Contact: Julian Cane, F&C Management Ltd, 020 7628 8000 / Emma Chilvers, Lansons
Communications, 020 7294 3606


                      F&C PEP AND ISA INVESTMENT TRUST PLC

         (formerly Foreign & Colonial PEP and ISA Investment Trust PLC)

   Unaudited Interim Statement of Results for the six months to 31 March 2002

                               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


  • During the 6 months to 31 March 2002, net asset value per share increased
    by 12.0% to 196.4 pence, while the FTSE All-Share index, our benchmark, rose
    by 9.3%.

  • The interim dividend is increased by 2.6% at a time when many companies
    are cutting their dividends.

  • Total return per share over the last five years is 47.5% compared to 38.4%
    from the FTSE All-Share Index.

  • The company has relatively heavy weightings in cyclically sensitive
    sectors such as engineering, media and construction, which have performed
    strongly due to expectation of economic growth.

SUMMARY OF UNAUDITED RESULTS
                                                              31 March             30 Sept                 %
                                                                  2002                2001            change

Net assets                                                     £97.61m             £88.32m             +10.5

Net asset value per share                                      196.39p             175.40p             +12.0

Share price                                                    174.50p             161.50p              +8.0

                                                        6 months to 31      6 months to 31                 %
                                                            March 2002          March 2001
                                                                                                      change
Earnings per share                                               2.11p               2.29p              -7.9

Dividends per ordinary share                                     2.00p               1.95p              +2.6



F&C PEP AND ISA INVESTMENT TRUST PLC

Unaudited Interim Statement of Results for the six months to 31 March 2002

Chairman's Statement

The six months under review from 30 September 2001 to 31 March 2002 have seen a
strong recovery for stock markets as the FTSE All-Share Index rose 9.3%. Against
this benchmark, your Company performed well as its net asset value per share
increased by 12.0% to 196.4 pence. The share price rose 8.0% to 174.5 pence as
the discount to net asset value widened from 7.9% to 11.1%. The interim dividend
is increased by 2.6% to 2.0 pence per share.

Capital Performance

After a difficult prior year when stock markets had fallen, there was a strong
rally in the quarter from 30 September to 31 December. The reasons for this were
that investors' confidence recovered somewhat following the terrorist attacks of
11 September as progress was made by the US military offensive in Afghanistan
and interest rates had been cut sharply. It also appeared that the worldwide
economic slowdown was not as severe as had been originally feared. The
expectation of stronger economic growth caused cyclically sensitive sectors,
such as engineering, media and construction to perform most strongly, while
sectors less impacted by general economic growth, such as telecommunication
services and pharmaceuticals, fell. The Company's portfolio had relatively small
positions in these two sectors due to concerns about stock price valuations and
the poor outlook for the telecommunications industry. The portfolio also had
relatively heavy weightings in some of the more cyclical sectors, as these
appeared to be conservatively valued. Both of these decisions were positive for
performance. As a result of strong performance over the last two years,
longer-term performance is good. Over the last five years, total return per
share (including gross dividends) of 47.5% is considerably above the total
return of 38.4% from the FTSE All-Share index (Source: Datastream).

Dividend

The 2.6% increase in the interim dividend compares favourably to underlying
inflation, which increased by 2.3% over the year to March and comes at a time
when many companies have cut their dividends. The dividend increase builds on
the Company's record of steady progression.

Share Buy Backs

The share buy back programme has continued although at a relatively slow rate in
line with the number of shares available for purchase. In total 650,000 shares
(1.3% of the Company) were bought back at an average discount to asset value
(including accumulated income) of almost 14%. This added approximately 0.3 pence
per share to net asset value per share.



F&C PEP AND ISA INVESTMENT TRUST PLC

Unaudited Interim Statement of Results for the six months to 31 March 2002

Vote on the Future of the Company

At the next annual general meeting, shareholders will vote on the Company's
future and at the time of the last annual report and accounts shareholders were
invited to express their views. The high level of responses was encouraging with
more than 30% of shareholders replying and the Board would like to thank all
those who took part in the questionnaire. The Board has considered the analysis
of the survey results, which shows a large majority to be in favour of the
Company continuing with the same or very similar investment strategy. It is also
clear that most of our shareholders intend to hold their investment for a long
time. The Board is considering the most appropriate options to satisfy
shareholders and will communicate our views to you in due course.

Outlook

Positively, recent economic indicators have suggested that most economies are
returning to stronger growth after a subdued period. Many of the companies that
had cut inventories during 2001 are returning stocks to more normal levels. This
is a relatively short-lived event and will not by itself sustain longer-term
growth, which has to come either from consumer expenditure or from higher levels
of government or corporate capital expenditure. Low interest rates have already
encouraged consumers to borrow and spend record amounts, so it may be expecting
too much to see consumer expenditure rising rapidly from current levels.
Likewise, corporate capital expenditure may be subdued given weak profitability
and overcapacity in many industries. This tends to suggest that overall growth
may be relatively weak looking forward. However, even if this is the case, it
should still prove possible to add value and generate attractive returns through
good stock and sector selection.

Graham Ross Russell

April 2002



F&C PEP AND ISA INVESTMENT TRUST PLC

Unaudited Interim Statement of Results for the six months to 31 March 2002

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


                                                   6 months to 31 March 2002                   6 months to 31 March 2001
                                               Revenue    Capital      Total       Revenue        Capital          Total
                                                £'000s     £'000s     £'000s        £'000s         £'000s         £'000s

Gains and losses on investments                      -     10,402     10,402             -        (4,116)        (4,116)
Exchange gains and losses on currency                4        (4)          -             -              4              4
balances
Income                                           1,261          -      1,261         1,382              -          1,382
Management fee                                   (112)      (112)      (224)         (124)          (124)          (248)
Other expenses                                    (89)        (3)       (92)          (60)            (2)           (62)
Net return before finance costs and              1,064     10,283     11,347         1,198        (4,238)        (3,040)
taxation
Interest payable and similar charges               (2)        (2)        (4)          (37)           (37)           (74)
Return on ordinary                               1,062     10,281     11,343         1,161        (4,275)        (3,114)

activities before taxation
Taxation on ordinary activities                    (5)          -        (5)           (4)              -            (4)
Return attributable to equity                    1,057     10,281     11,338         1,157        (4,275)        (3,118)
shareholders
Dividends on ordinary shares (equity)            (986)          -      (986)         (973)              -          (973)
Amount transferred to/(from) reserves               71     10,281     10,352           184        (4,275)        (4,091)
Return per ordinary share - pence                 2.11      20.53      22.64          2.29         (8.48)         (6.19)


* 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.



F&C PEP AND ISA INVESTMENT TRUST PLC

Unaudited Interim Statement of Results for the six months to 31 March 2002

     Unaudited Balance Sheet
                                                  31 March 2002    31 March 2001        30 Sept 2001
                                                         £'000s           £'000s              £'000s
Fixed assets
Investments                                              97,966          100,919              88,833

Current assets
Debtors                                                     607              695                 673
Taxation recoverable                                         16               25                  17
Cash at bank and short-term deposits                        255              770                 731
                                                            878            1,490               1,421
Current liabilities
Creditors: amounts falling due within one
year:
Short-term loans                                              -          (1,500)                   -
Other creditors                                         (1,238)          (1,187)             (1,936)
                                                        (1,238)          (2,687)             (1,936)
Net current liabilities                                   (360)          (1,197)               (515)
Net assets                                               97,606           99,722              88,318


Capital and reserves
Called up equity share capital                           12,425           12,588              12,588
Capital redemption reserve                                2,332            2,169               2,169
Share premium                                            16,394           16,394              16,394
Special reserve                                          18,705           19,769              19,769
Capital reserves                                         46,523           47,775              36,242
Revenue reserve                                           1,227            1,027               1,156
Total shareholders' funds                                97,606           99,722              88,318
Net asset value per ordinary share
- pence                                                  196.39           198.06              175.40

Geographical distribution of the investments at 31 March 2002 was:

UK 91%

Europe 9%


F&C PEP AND ISA INVESTMENT TRUST PLC

Unaudited Interim Statement of Results for the six months to 31 March 2002


Unaudited Cash Flow Statement
                                                           6 months to                        6 months to
                                                         31 March 2002                      31 March 2001
                                                                £'000s                             £'000s

Net cash inflow from operating                                     983                                952
activities
Interest paid                                                      (4)                               (72)
Total tax (paid)/recovered                                         (4)                                  5
Equity dividends paid                                          (1,578)                            (1,536)
Net cash inflow from purchases and                                  52                              4,597
sales of investments
Net cash (outflow)/inflow before                                 (551)
use of liquid resources and
financing                                                                                           3,946
Decrease in short-term deposits                                    400                                400
Net cash inflow/(outflow) from                                      79                            (3,905)
financing
(Decrease)/increase in cash during                                (72)                                441
the period



The Directors have declared an interim dividend of 2.00p (2001: 1.95p) per share
payable on 31 May 2002 to shareholders registered on 10 May 2002.

The Interim Report will be posted to shareholders by 8th May 2002. 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

30 April 2002


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