Interim Results

FOREIGN & COLONIAL PACIFIC INVESTMENT TRUST PLC
22 September 1999

                              
  Unaudited Statement of Results for the half year ended 31 July 1999
                       
 
Highlights
 
- Share price increased by 40.3% to 147.0p in six months
  to July 1999 (104.8p at 31 January 1999).
 
- 172.90p, which compares to the FT/S&P Japan index which rose
  34.5% and the MSCI AC Asia Pacific ex Japan index which rose
  33.4%.  Therefore the Company's benchmark, which is based on
  a 50/50 split between these indices, rose by 33.9%.
 
- The Company now has effective gearing of 6% (assuming
  conversion of the Yen Convertible Bonds).
 
- Markets have performed well across Asia as the strength
  of the economic recovery became apparent. Expectations for
  the Japanese economy have also risen.
 
- Interim dividend unchanged at 0.80p per share.
 
- Share buy backs - Authority to buy back up to 14.9% of
  the issued share capital was given at the AGM in June
  subject to the consent of the trustee of the Company's
  Convertible Bonds.  This consent has recently been given.
 
- Outlook - The Board believes that the outlook for Asian
  markets is encouraging, as the economic recovery that is
  spreading across the region, coupled with significant
  corporate restructuring could lead to dramatic  increases in
  corporate profitability.
 
 
SUMMARY OF CONSOLIDATED RESULTS
 
                          6 months to    6 months    Year ended 31
                         31 July 1999      to         January 1999
                                       31 July 1998
 Attributable to                                                
 equity shareholders:
 Consolidated total                                             
 assets less current                                            
 liabilities                 £492.4m      £370.9m        £406.3m
 (excluding short-term
 loans)
 Consolidated net            £398.2m      £296.7m        £314.5m
 assets
 Consolidated net                                               
 asset value per share         172.90p      128.81p               
                                                         136.58p
 Consolidated earnings                                          
 per share                     0.87p        1.81p          2.93p
 Dividends per share           0.80p        0.80p          1.85p
 Ordinary share price         147.0p      106.25p         104.8p
  
  CHAIRMAN'S STATEMENT
  
  Summary
  
  In the six months ended 31 July 1999, our share price rose by
  40.3%, whilst the undiluted net asset value per share rose by
  26.6%. These rises should be viewed in the context of the FT/S&P
  Japan index which rose by 34.5% and the MSCI AC Asia Pacific ex
  Japan index which rose by 33.4%. Our benchmark, which is based on
  a 50/50 split between these indices, rose by 33.9%.
  
  During the period we moved to a fully invested position, having
  started the financial year with 24% net liquidity. Since 31 July,
  we have invested further liquidity in the markets and now have
  effective gearing of 6%. These figures assume conversion of the
  Yen Convertible Bonds.
  
  Markets and investment policy
  
  Markets have performed well across Asia as the strength of the
  economic turnaround has become apparent. Expectations for economic
  recovery in Japan have also risen, underpinning bullish sentiment
  across the region. For example, the Korean market has risen by
  more than 80%, whilst only the Australasian markets failed to
  reach double digits.
  
  The widespread feeling that the Japanese economy has finally
  bottomed is reflected in the fact that consensus estimates are now
  expecting positive GDP growth for the current fiscal year. The Japanese
  government appears committed to growth and the Bank of Japan is maintaining
  its cheap money policy. There has been large foreign buying of the Japanese
  stock market, fuelled by hopes that the corporate sector may finally be
  getting serious about restructuring and dealing with over-capacity.
  
  Other markets in Asia continue to be encouraged by a combination
  of economic recovery and corporate restructuring. The strength of
  the economic rebound continues to take commentators by surprise.
  Regional economies are running large current account surpluses,
  meaning that they are not dependent on foreign money flows and are
  less exposed to rising US interest rates than was the case prior
  to the 1997 crisis. It is becoming increasingly apparent that the
  economic recovery is having a positive impact on corporate
  earnings growth.
  
  We have continued to invest the substantial liquidity that the
  Company had held during the Asian crisis.  On the basis of
  conversion of the Yen Convertible Bonds, we are geared. The
  position in Japanese equities has been significantly increased and
  the emphasis of the portfolio has moved away from exporters
  towards companies that are exposed to a pick up in domestic
  economic activity. In the other markets, we have emphasised Korea
  and Malaysia, which offer differing combinations of economic
  recovery, restructuring and under-ownership by foreign investors.
  We currently have a relatively low weighting in Hong Kong, where
  we feel that the strength of the economic rebound and the
  potential for corporate restructuring are less pronounced than
  elsewhere in Asia
 
  Revenue and Dividend
  
  Our revenue in the first half of the financial year was
  considerably lower than for the corresponding period last year,
  when the numbers were boosted by a one-off effect from the sale of
  our land in Mindarie, Western Australia. Net revenue from our
  Australian subsidiaries was also lower due to costs associated
  with the opening of Gateways shopping centre. The move to a fully
  invested position and corresponding reduction in income from cash
  and bonds has also reduced revenue. The Board has declared an
  unchanged interim dividend of 0.80p.
  
  Share Buy-Back
  
  At the AGM in June, shareholders gave the Board authority to buy
  back up to 14.9% of the Company's issued share capital. This
  authority was subject to the consent of the trustee of the
  Company's Yen Convertible Bonds. This was given recently and, as
  stated at the time of seeking the authority, we will utilise the
  authority as and when it is advantageous to do so.
 
  Outlook
  
  We feel that the outlook is better than for many years, but there
  may be scope for short-term volatility given the extent to which
  Asian markets have recovered.  The economic recovery that is
  spreading across the region, coupled with significant corporate
  restructuring, could lead to dramatic increases in corporate
  profitability. Clearly risks remain given the fact that the
  recovery is at such an early stage and the region remains
  vulnerable to shocks, whether economic, financial or political.
  However, on balance, we believe that the prospects are
  encouraging.
  
  A J Davis
  September 1999
  
 
 CONSOLIDATED ASSETS
                                 31 July        31 July    31 January
                                    1999           1998          1999
                                  £'000s         £'000s        £'000s
                                                        
  Consolidated total assets                                          
  less current liabilities                                           
  (excluding short-term loans)   492,442        370,887       406,262
  Loans                          (40,341)       (31,753)      (39,262)
  Yen convertible bonds          (53,788)       (42,337)      (52,349)
  Deferred taxation                 (144)           (95)         (136)
  Consolidated net assets        398,169        296,702       314,515
  Net asset value per share       172.90p        128.81p       136.58p

 
 Geographical distribution of consolidated total assets less
 current liabilities (excluding loans) at
 31 July 1999 was:
 Japan 50.3%, Australasia 12.5%, South Korea 7.6%, Taiwan 4.8%,
 Malaysia 4.8%, Hong Kong 4.7%, Other Far-East 9.3%, US (cash &
 floating rate notes) 5.8%, UK 0.2%.
 
 Geographical distribution of currency exposure at 31 July 1999
 was:
 Japan 38.6%, Australasia 15.5%, South Korea 9.4%, Taiwan 5.9%,
 Malaysia 5.9%, Hong Kong 5.8%, Other Far-East 11.6%, US (cash &
 floating rate notes) 7.1%, UK 0.2%.
 

Unaudited Consolidated Statement of Total Return (incorporating the
Revenue Account*) for the half year ended 31 July 1999
 
                    6 months to 31 July 1999   6 months to 31 July 1998
                    Revenue  Capital   Total   Revenue  Capital   Total
                     £'000s   £'000s  £'000s    £'000s   £'000s  £'000s

Gains on tangible                                                  
fixed assets              -        4       4         -        -      -
Gains /(losses)on                                                  
investments               -   87,609  87,609         -  (27,714) (27,714)

Exchange                                                           
(losses)/gains          176   (4,117) (3,941)     (501)   6,807    6,306
on currency balances                 

Income                7,275        -   7,275    10,175       -    10,175
Management fee       (1,386)       -  (1,386)   (1,488)      -    (1,488)
                                         
Other expenses       (1,898)     (10) (1,908)   (1,115)      -    (1,115)

Net return before                                                  
finance costs and     4,167   83,486  87,653     7,071 (20,907)  (13,836)
taxation                     

Interest payable                                                   
and similar          (1,101)      -   (1,101)     (850)      -      (850)
charges                                    

Return on ordinary                                                 
activities before     3,066  83,486   86,552     6,221  (20,907) (14,686)
taxation                          

Taxation on                                                        
ordinary            (1,056)       -   (1,056)   (2,052)       -   (2,052)
activities                                        

Return                                                             
attributable to      2,010    83,486  85,496     4,169  (20,907) (16,738)
equity                            
shareholders

Dividends on                                                       
ordinary shares     (1,842)        -  (1,842)  (1,842)       -    (1,842)
(equity)                                  

Amount transferred                                                 
to/(from) reserves     168    83,486   83,654   2,327  (20,907)  (18,580)

Return per                                                         
ordinary share -      0.87     36.25    37.12    1.81    (9.08)    (7.27)
pence
 
*The revenue column of this statement is the profit and loss
account of the Group.
 
The interim dividend of 0.80p per share will be paid on 1 November
1999 to shareholders registered on 8 October 1999.
Total return per ordinary share is based on 230,280,920 ordinary
shares in issue during the period (31 July 1998 - same).
The interim statement will be posted to shareholders on or after 1
October 1999. 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
Foreign & Colonial Management Limited - Secretary
Exchange House
Primrose Street
London EC2A 2NY