British Assets Trust plc

Interim Management Statement

For the Period from 1 April 2012 to 3 August 2012  

Investment Objective

British Assets Trust plc aims to achieve a total return in excess of a composite index, weighted as to 80 per cent FTSE All-Share Index and 20 per cent FTSE World (ex UK) Index, by investing principally in a diversified international portfolio of equities and equity-related securities.  Within this overall objective, the Company aims to maintain a progressive dividend policy which will be dependent upon, inter alia, the rate of revenue growth within the investment portfolio and the level of dividend cover.

Performance Summary

Sources: F&C Investment Business Limited, Datastream.

1          All total return calculations are based on dividends re-invested

2          Net asset value total return is calculated as the total return attributable to an Ordinary Share

3          Composite index of 80 per cent FTSE All-Share Index and 20 per cent FTSE World (ex UK) Index

4          Net asset value (UK GAAP) with debt at par

5          Net asset value (UK GAAP) adjusted to reflect market value of debt

6          Net asset value (non-UK GAAP, ex-income) adjusted to reflect market value of debt

7          Gearing net of cash: (investments-shareholders' funds)/shareholders' funds

8          Equity gearing: (equity investments-shareholders' funds)/shareholders' funds

Review for the Period

The Company's net asset value total return for the three months ended 30 June 2012 was -3.7%. This compares with a return of -2.8% from the composite benchmark index of 80% FTSE All-Share Index and 20% FTSE World (ex UK) Index.

Markets remained volatile during the period as investors continued to focus on developments in Europe. Although the low expectations of any solution from the European summit in June were perhaps modestly surpassed, there remains plenty of work to be done to place the Eurozone on a long term sustainable footing. But this was a minor first step in the right direction.

Global economic growth prospects have now been impacted by the Eurozone crisis with downward revisions to earnings forecasts continuing. This has placed an increased premium on earnings and  certainty in terms of market valuations of certain sectors that are beginning to look somewhat full, particularly in the consumer goods sectors.

Stock market volatility is likely to persist whilst European prospects in particular remain so difficult. The US will also need to address its budget issues in the not too distant future. This will be another concern to weigh up against what remain overall modest equity valuations over the summer months.

Top Ten Holdings as at 30/06/12

Geographical Analysis as at 30/06/12

Dividends

First and second interim dividends in respect of the year ended 30 September 2012, of 1.442p per share, were paid on 5 April 2012 and 6 July 2012 respectively.

Subsequent Events

The Board is not aware of any significant events or transactions which have occurred since 30 June 2012 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Daily and Key Information

This statement and further information regarding the Company, including daily net asset values published since the end of the period and monthly factsheets, can be found at the Company's website www.british-assets.co.uk, or at www.fandc.com.

For further information please contact:

Phil Doel/Gordon Hay Smith

F&C Investment Business Limited

Tel: 0207 628 8000