REG-SR Euro Inv Trust: Interim Management Statement

SR Europe Investment Trust plc

Interim Management Statement
For the three months ended 31 March 2009 (unaudited)

This interim management statement has been produced to provide information to
shareholders in accordance with the relevant requirements of the UK Listing
Authority's Disclosure and Transparency Rules. It should not be relied upon by
any other party or parties for any other purposes. The views, information and
data in this publication should not be deemed a financial promotion or
recommendation.

Summary

31 March 2009 31 Dec 2008

Net assets (including current period £50.5 million £52.7 million
revenue)

Net asset value per share 170.2 pence 177.6 pence

Percentage of funds invested 87.5% 65.5%

Investment Manager's Review

The Company's net asset value ("NAV") per share fell by 4% during the three
month period ended 31 March 2009. For comparative purposes only, the MSCI
Europe incl. UK index fell 12.8% in sterling terms over the same period. The
following factors contributed to the performance of the Company over this
period:

The net equity invested position came down from around 40% at 31 December 2008
to a low in the 20-25% range, before increasing somewhat into quarter end at
30%. Throughout the period we maintained an exposure in corporate bonds, which
were gradually increased to a 25% position.

Our corporate bond positioning was formed from the fundamental equity research
undertaken and our preference of ownership at a higher level in the corporate
structure. This decision was typically premised on the exceptional yields to
maturity available, which have moved in our favour over the quarter.

In a market environment characterised by huge uncertainty, we were still
hopeful that companies offering a relative degree of earnings/dividend
stability whilst looking cheap in a multiyear valuation context could prosper
somewhat. Names with such attributes include KPN, Vodafone, Vivendi, SAP and
E.On, all of which feature in the Company's portfolio.

The Company still contains several smaller companies where we can see some
exciting potential, but overall their relative sizing has been gradually
de-emphasised. Two companies which we previously felt should grow even in a
difficult economic environment, United Internet and Carphone Warehouse, were
significantly reduced. Although both look absolutely cheap with large potential
upside on both "sum of the parts" analysis and break up valuations, their
previous ability to grow now looks too optimistic.

We are working with the assumption that the lows of March may not be retested
until September/October. Over the next few months we will adopt a relatively
simple tactic of owning companies that look unlikely to have short-term profit
warnings, offer a decent yield and have valuations well below their medium-term
averages. Europe actually has quite a wide choice within these parameters
currently. Alongside this, there are some holdings with significant upside
optionality based around expected newsflow in the coming months. There is
currently very little attempt to bottom fish or play any big market recovery
within the Company, however, a gently rising market and a reduction in overall
volatility would be a very welcome outcome.

Since the quarter end the Company has increased its weightings in several
areas, and as at 30 April 2009, 57% of the assets were in equities, 27% in
corporate bonds and 16% in cash.

Top 10 Holdings

as at 31 March 2009

Company % of net Country Sector
assets

United Kingdom 0% T Bill 20.6 United Kingdom Gilts
11/05/09

German 0% T Bill 22/04/ 13.6 Germany Gilts
09

Petroleum Geo 2.7% 5.2 Norway Energy

Seadrill 3.625% 4.5 Norway Bond

Wirecard 4.1 Germany Information Technology

Man Group 11% 3.2 United Kingdom Bond

Vodafone 2.9 United Kingdom Telecommunication
Services

Acergy 2.25% 2.5 Luxembourg Bond

3i Group 3.625% 2.2 United Kingdom Bond

Sonata 1.5% 2.2 Spain Bond

Asset Allocation

as at 31 March 2009

As at 31 As at 31
March 2009 December 2008

Country % of net % of net assets
assets

Belgium 0.2 0.4

Finland - 1.0

France 2.1 5.0

Germany 21.2 20.7

Ireland 0.9 0.8

Luxembourg 2.5 1.0

Netherlands 4.8 6.4

Norway 15.2 11.6

Russia - 1.1

Spain 2.2 -

Sweden 0.5 -

Switzerland - 0.7

United Kingdom 37.8 16.8

As at 31 March 2009 As at 31 Dec 2008

Value (GBP) Percentage Value (GBP) Percentage
(%) (%)

Equities 15,218,000 30.1 20,304,195 38.5

Fixed Income 28,982,571 57.3 14,219,423 27.0

Cash 6,148,779 12.2 17,694,336 33.5

Hedging 188,579 0.4 509,063 1.0

Net assets 50,537,929 100.0 52,727,017 100.0

Note: The Directors are not aware of any significant events or transactions
which have occurred between the date of the financial information and the date
of publication, which would have a material impact on the financial position of
the Company. For latest performance and portfolio information, please refer to
the Company's website: www.sreit.co.uk.

Contact Details:

Capita Sinclair Henderson Ltd

+ 44 1392 412 122

www.sreit.co.uk

11 May 2009

END