RNS Number:8995N
M&G High Income Inv Tst PLC
23 July 2003



                   High Income Investment Trust Announcement




Dividend

M&G High Income Investment Trust P.L.C. announces that at a meeting of the Board
of Directors held today, it was resolved to declare a fourth interim dividend of
1.65p (2002: 1.575p) per Income Share in respect of the year ending 31 May 2003,
to be paid on 26 August 2003 to Income Shareholders on the register at the close
of business on 1 August 2003. The ex dividend date is 30 July 2003.

Financial Performance

The Board is pleased to announce a fourth interim dividend of 1.65p net per
Income Share, making a total of 4.725p net per Income Share for the year, 1.6%
higher than last year. At the end of the period, the yield on the Company's
Package Units was 5.3%, well above the yields of 3.5% and 4.6% respectively on
the FTSE All-Share and the FTSE 350 Higher Yield indices.

On a net asset value ('NAV') basis each Package Unit produced a negative total
return of 8.7% over the year, against a negative total return of 17.6%
for the FTSE All-Share Index and a negative total return of 19.5% on the FTSE 
350 Higher Yield Index. Although disappointing in itself, this should be viewed 
in the context of exceptionally difficult and volatile stockmarket conditions
prevailing throughout the year.

Over the past three years, sustained investor preference for high yielding
shares and fixed interest securities has complemented the Company's investment
strategy and the portfolio has outperformed the FTSE All-Share Index by 10.4%
per annum over that period.

Statement of Total
Return

(incorporating the
revenue account)

                                   2003                         2002
                         Revenue   Capital    Total   Revenue   Capital    Total
for the year ended 31 May  #'000     #'000    #'000     #'000     #'000    #'000


Losses on                     -    (7,877)  (7,877)        -    (1,797)  (1,797)
investments

Income                    2,974         -    2,974     2,961         -    2,961

Investment management      (210)     (427)    (637)     (243)     (494)    (737)
fee

Other expenses              (95)        -      (95)      (75)        -      (75)


Return on ordinary        2,669    (8,304)  (5,635)    2,643    (2,291)     352
activities before
tax

Tax on ordinary activities  (96)       96        -      (117)      117        -



Return on ordinary        2,573    (8,208)  (5,635)    2,526    (2,174)     352
activities after
tax

Appropriations for          -      (1,675)  (1,675)        -    (1,549)  (1,549)
premium payable on
redemption

Dividends(non-equity)    (2,540)        -   (2,540)   (2,504)        -   (2,504)


Transfer to / (from)         33    (9,883)  (9,850)       22    (3,723)  (3,701)
reserves                  


Earnings per Income        4.78p                        4.69p
Share


All the items dealt with in arriving at revenue on ordinary activities before
tax for 2003 related to continuing activities, no operations were acquired or
discontinued during the year.

The revenue column of this statement is the profit and loss account of the
company.



Balance Sheet
As at 31 May 2003                                 2003              2002
                                                 #'000             #'000

Employment of capital
Fixed assets
Investments                                     54,249            62,881
Current assets
Debtors                                            653               507
Cash at bank                                       711               414
                                                 1,364               921


Creditors: Amounts falling due                    (950)             (876)
within one year

Net current assets                                 414                45

Net assets                                       54,663            62,926


Capital and reserves
Called up share capital                            1,613             1,616
Capital redemption reserve                        15,549            15,546
Zero Dividend Preference Share                     7,905             6,230
appropriation reserve
Special reserve                                   37,372            37,460
Capital reserves - realised                       (5,340)           (2,157)
                 - unrealised                     (2,644)            4,056

Revenue Reserve                                      208               175


Shareholders'funds(all non-equity)                54,663            62,926


Net asset value per Zero Dividend                35.15p            32.11p
Preference Share

Net asset value per Income Share                 68.20p            71.90p



Net asset value per Capital Share                    -             14.41p



Net asset value per Income & Growth              68.20p            86.31p
Unit



Net asset value per Package Unit                103.35p           118.42p




Cash Flow Statement

                                             2003               2002
for the year ended 31 May              #'000     #'000    #'000    #'000


Net cash inflow from operating                    2,295             2,155
activities

Servicing of finance

Dividends paid (non-equity)                       (2,501)           (2,455)



Taxation

Income tax recovered                                 -                 14



Investment activities

Purchase of investments                (9,891)            (8,808)

Sale of investments                    10,482              8,336

Net cash inflow/ (outflow) from investing           591                (472)
activities



Financing

Repurchase of Package Units

(including related costs)                          (88)                  (2)


Increase/ (decrease) in cash                       297                  (760)




Note

The results for 2002 are based on accounts filed with the Registrar of Companies
which carry an audit report which is unqualified and includes no matters of
adverse comment. The 2003 figures have been extracted from the audited financial
statements which will be filed with the Registrar of Companies with an
unqualified audit report with no matters of adverse comment.

The annual reports will be posted to shareholders on 4 August 2003 and the
Annual General Meeting will be held at 11.15 am on 10 September 2003 at 
Governor's House, Laurence Pountney Hill, London EC4R 0HH.



Investment Portfolio
As at 31 May 2003

  Holding                                              Value    % net
                                                        #'000   assets

            Mining                                                2.16
  100,000   Lonmin                                        820     1.50
   30,000   Rio Tinto (Regd.)                             359     0.66


            Oil & gas                                             7.46
  400,000   BP                                          1,672     3.06
  200,000   Hunting                                       201     0.37
  550,000   Shell Transport & Trading (Regd.)           2,205     4.03


            Chemicals                                             0.70
   50,000   BOC Group                                     385     0.70


            Construction & building materials                     6.03
  250,000   Barratt Developments                        1,175     2.15
  150,000   BPB                                           458     0.84
  500,000   Crest Nicholson 5.5% Cnv. Red. Pref.          493     0.90
  150,000   Persimmon                                     697     1.27
  350,000   Pilkington                                    258     0.46
   50,000   RMC Group                                     224     0.41


            Aerospace & defence                                   0.94
  249,843   Meggitt                                       514     0.94


            Engineering & machinery                               2.78
  125,000   IMI                                           383     0.70
  125,000   Rotork                                        406     0.74
  100,000   Tomkins                                       240     0.44
  150,000   Vitec Group                                   491     0.90


            Automobiles                                           0.38
  100,000   GKN                                           205     0.38


            Beverages                                             1.35
   25,000   Diageo                                        164     0.30
  150,000   Scottish & Newcastle                          574     1.05


            Food producers & processors                           0.93
   25,000   Dairy Crest                                   101     0.18
   75,000   Unilever                                      408     0.75


            Pharmaceuticals                                       3.09
  140,000   GlaxoSmithKline                             1,687     3.09


            Tobacco                                               2.98
  175,000   Gallaher                                    1,075     1.97
   50,000   Imperial Tobacco                              550     1.01


            General retailers                                     4.59
   25,000   Boots Group                                   156     0.29
   40,000   Carpetright                                   248     0.45
   63,049   Debenhams                                     241     0.44
  325,000   Findel                                        873     1.60
   75,000   GUS                                           471     0.86
  150,000   Smith W.H                                     520     0.95


            Leisure & hotels                                      4.51
  150,000   William Hill                                  401     0.73
   84,957   Intercontinental Hotels                       367     0.67
  148,305   Mitchells & Butlers                           310     0.57
  150,000   Rank Group                                    375     0.69
  615,000   Rank Group Cnv. Cum. Pref.                    632     1.16
   57,442   Wolverhampton & Dudley                        375     0.69


            Media & entertainment                                 1.94
  400,000   Carlton Communications 6.5p Cnv. Pref.        367     0.67
            2010
  150,000   Trinity Mirror                                694     1.27


            Support services                                      2.00
   60,000   Davis Service Group                           230     0.42
   75,000   Electrocomponents                             240     0.44
  120,000   RAC                                           621     1.14


            Transport                                             4.51
  250,000   Arriva                                        905     1.66
  125,000   BBA Group                                     269     0.49
  175,000   FirstGroup                                    465     0.85
   80,000   Mersey Docks & Harbour                        428     0.78
    7,206   Peninsular & Oriental Steam Nav. Dfd.          17     0.03
  225,000   Wincanton                                     381     0.70


            Food & drug retailers                                 1.06
   75,000   Safeway                                       202     0.37
  140,000   Sainsbury (J)                                 379     0.69


            Telecommunication services                            4.15
  200,000   BT Group                                      390     0.71
 #300,000   Vodafone (MSDW) 6.5% PERQ 2004                388     0.71
   22,500   Vodafone ADR Cnv.                             302     0.55
  900,000   Vodafone Group                              1,192     2.18


            Electricity                                           2.15
  100,000   Scottish & Southern Energy                    634     1.16
  150,000   Scottish Power                                542     0.99


            Utilities - Other                                     6.22
  300,000   Kelda Group                                 1,300     2.38
   75,000   National Grid Transco                         298     0.55
  300,000   Northumbrian Water                            321     0.59
  114,430   Pennon Group                                  767     1.40
   70,000   Severn Trent                                  524     0.96
   30,000   United Utilities                              184     0.34


            Banks                                                11.08
   70,000   Alliance & Leicester                          584     1.07
  360,000   Barclays                                    1,560     2.85
  200,000   Bradford & Bingley                            697     1.28
  259,000   HSBC Hldgs.                                 1,867     3.42
  300,000   Lloyds TSB Group                            1,342     2.46


            Life assurance                                        1.18
   75,000   Britannic                                     164     0.30
  250,000   Friends Provident                             290     0.53
   50,000   Prudential                                    190     0.35


            Real estate                                           2.74
  250,000   Brixton                                       565     1.03
   25,000   Land Securities                               203     0.37
  500,000   Slough Estates 8.25p Cnv. Red. Pref.          730     1.34


            Speciality & other finance                            2.48
   70,294   Close Brothers Group                          420     0.77
   92,038   Provident Financial                           578     1.06
  250,000   Singer & Friedlander Group                    356     0.65


            Software & computer services                          0.26
   90,000   Sage Group                                    144     0.26


            Non-convertible preference shares                     9.97
1,500,000   Aviva 8.75% Cum. Irrd. Pref.                1,667     3.05
  750,000   General Accident 8.875% Cum. Irrd. Pref.      888     1.62
  550,000   HBOS 9.75% Non-cum Irrd. Pref.                802     1.47
  400,000   National Westminster 9% Series A Non-cum      559     1.02
            Pref.
1,250,000   Royal & Sun Alliance 7.375% Cum. Irrd.      1,009     1.84
            Pref.
  500,000   Standard Chartered 7.375% Non-cum. Irrd.      530     0.97
            Pref.


            Sterling Corporate Bonds                             11.60
 #300,000   Alliance & Leicester 8.75% Bds. 2006          343     0.63
 #400,000   Associated British Ports 6.625% Bds.          427     0.78
            2008
 #285,000   Austria (Republic of) 9% Bds.2004             302     0.55
 #698,000   Capital Shopping 6.875% Bds. 2013             706     1.29
 #655,000   Carlsberg Finance 7% Bds. 2013                721     1.32

 #700,000   DWR Cymru Financing 8.174% Bds. 2036          801     1.46
#1,500,000   HSBC 9.25% Bds. 2049                        1,735     3.17
 #255,000   London Merchant Secs. 6.5% Bds. 2026          268     0.49
 #211,000   National Westminster Bank 7.625% Bds.         245     0.45
            2049
 #499,000   Shaftesbury 8.5% 1st Mort. Deb. 2024          625     1.14
 #170,000   United Utilities Water 5.25% Bds. 2010        177     0.32



            Total investments                          54,249    99.24
            Net current assets                            414     0.76
            Net assets                                 54,663   100.00



                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
FR ILFLDDSIVFIV