Interim Management Statement

Keystone Investment Trust Plc                         

                         Interim Management Statement                          

                  for the three monthse nded 31 December2007                   

Material Events

No material events occurred in the period.

Dividends

In the period, a final dividend of 25p per ordinary share was declared and was
paid on 21 December 2007 to shareholders on the register as at 23 November
2007.

Performance - Total Return

                              3 Months      1 Year      3 Years      5 Years   
                                                                               
Share Price                     0.5%         4.4%        49.7%        173.3%   
                                                                               
Net Asset Value                 2.2%         4.9%        55.5%        150.0%   
                                                                               
FTSE All-Share Index           -0.3%         5.3%        50.1%        104.6%   

Source: Fundamental Data

Share Price and Discount

                                         For the Three Months Ended 31 Dec 2007
                                                                               
                      As at 31 Dec 2007      High         Low        Average   
                                                                               
Share Price (pence)   1170.0                1223.0       1103.0       1172.3   
                                                                               
Discount (debt at     11.1%                 13.9%         8.4%        11.2%    
par)                                                                           
                                                                               
Discount (debt at     8.8%                  11.1%         5.4%         8.4%    
fair value)                                                                    

Source: Fundamental Data

Assets and Gearing

                                         31 Dec 2007    30 Sept 2007     Change
                                                                               
Total Gross Assets (£m)                        215.8           219.0      -1.5%
                                                                               
Cash and Certificates of Deposit (£             25.3            15.7           
m)                                                                             
                                                                               
Borrowings (£m)                                 39.8            39.8           
                                                                               
Net Asset Value (pence)                       1316.3           1315.4†     0.1%
                                                                               
Effective Gearing                                109             114           

† - ex final dividend

`Effective Gearing' shows the use of long-term borrowings for investment
purposes. A figure of 100 means that the Trust has no gearing.

The Company's gearing remains unchanged and is provided by 250,000 5%
cumulative preference shares of £1 each and the following long term debentures
totalling £40 million:

£5,000,000 10.25% debenture stock 2010

£3,000,000 11.375% debenture stock 2010/2015

£7,000,000 7.75% debenture stock 2020

£25,000,000 6.5% debenture stock 2023

Sector Breakdown of Portfolio(excluding Cash)

                                31 Dec 2007        30 Sept 2007
                                                               
Consumer Goods                        19.9%               18.6%
                                                               
Utilities                             13.8%               12.6%
                                                               
Industrials                           12.7%               13.4%
                                                               
Consumer Services                     12.7%               13.0%
                                                               
Oil & Gas                             11.9%               10.6%
                                                               
Health Care                           11.1%               12.8%
                                                               
Telecommunications                     8.2%                9.2%
                                                               
Financials                             6.3%                6.6%
                                                               
Technology                             2.6%                1.9%
                                                               
Basic Materials                        0.8%                1.3%

Top Ten Holdings

Ranking  Top Ten Holdings      % of Portfolio  Bought/Sold       Ranking at    
                                                                               
Now                                             in Period       30 Sept 2007   
                                                                               
1        Imperial Tobacco           5.4%            S                6         
                                                                               
2        British American           5.4%            S                2         
         Tobacco                                                               
                                                                               
3        Reynolds American          5.2%           B/S               4         
                                                                               
         - US Common Stock                                                     
                                                                               
4        Royal Dutch Shell          5.1%            S                1         
                                                                               
5        BP                         5.1%           B/S               3         
                                                                               
6        GlaxoSmithKline            4.7%            S                5         
                                                                               
7        Vodafone                   4.3%            S                7         
                                                                               
8        BT                         3.9%            S                8         
                                                                               
9        Tesco                      3.6%            S                9         
                                                                               
10       National Grid              3.6%            S                10        

All ordinary shares unless otherwise stated

Changes to Share Capital

                             Ordinary Shares of 50p each
                                                        
                                                  Issued
                                                        
As at 30 Sept 2007                            13,368,799
                                                        
Shares bought back                                     0
                                                        
Shares issued                                          0
                                                        
As at 31 Dec 2007                             13,368,799

The Company has authority to buy back shares for cancellation and to issue new
shares (disapplying pre-emption rights), in each case within specified limits.
The Company expects to renew these authorities each year.

Price and Performance

The Company's Ordinary shares are listed on the London Stock Exchange and the
price is published in the Times and the Financial Times under `Investment
Companies' and in the Daily Telegraph under `Investment Trusts'.

The Company's net asset value is calculated on a daily basis and can be viewed
on the London Stock Exchange website at www.londonstockexchange.com.

Further information can be obtained from Invesco Perpetual as follows:

Free Investor Helpline: 0800 085 8677

Internet address: www.invescoperpetual.co.uk/investmenttrusts

The information provided in this statement should not be considered as a
financial promotion.

Interim management statements are expected to be published in January and July
each year.

For and on behalf of

Invesco Asset Management Limited

11 January 2008