Interim Management Statement

Keystone Investment Trust Plc                         

                         Interim Management Statement                          

                    for the three months ended 30 June 2008                    

Material Events

No material events occurred in the period.

Dividends

In the period, an interim dividend of 17p per ordinary share was declared and
was paid on 25 June 2008 to shareholders on the register as at 23 May 2008.

Performance - Total Return

                                3 Months       1 Year      3 Years      5 Years
                                                                               
Share Price                        -3.8%       -10.6%        28.6%        90.3%
                                                                               
Net Asset Value                     0.9%       -13.6%        26.9%        89.3%
                                                                               
FTSE All-Share Index               -1.5%       -13.0%        23.2%        71.0%

Source: Fundamental Data

Share Price and Discount

                                           For the Three Months Ended 30 June  
                                                          2008                 
                                                                               
                      As at 30 June 2008     High         Low        Average   
                                                                               
Share Price (pence)   1000.00              1115.00       990.00       1063.0   
                                                                               
Discount (debt at     13.6%                                                    
par)                                                                           
                                                                               
Discount (debt at     10.7%                                                    
fair                                                                           
                                                                               
value)                                                                         

Source: Fundamental Data

Assets and Gearing

                                        30 June 2008    31 March 2008    Change
                                                                               
Total Gross Assets (£m)                        191.8            194.7     -1.5%
                                                                               
of which cash and Certificates of               42.8             25.0          
                                                                               
Deposit (£m)                                                                   
                                                                               
Borrowings (£m)                                 39.8             39.8          
                                                                               
Cum Income Net Asset Value (pence)            1157.3           1158.9     -0.1%
                                                                               
Effective Gearing                                 98              110          

`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 structured debt 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 and Certificates of Deposit)

                               30 June 2008       31 March 2008
                                                               
Consumer Goods                        17.5%               19.8%
                                                               
Utilities                             15.6%               14.9%
                                                               
Oil & Gas                             14.0%               12.1%
                                                               
Consumer Services                     11.4%               12.7%
                                                               
Industrials                           10.9%               12.2%
                                                               
Health Care                            9.5%                9.7%
                                                               
Financials                             8.9%                7.2%
                                                               
Telecommunications                     7.3%                7.0%
                                                               
Technology                             2.2%                2.2%
                                                               
Basic Materials                        1.5%                1.1%
                                                               
Fixed Interest                         1.2%                1.1%

Top Ten Holdings

Ranking  Top Ten Holdings             % of        Bought/Sold     Ranking at   
                                                                               
Now                                 Portfolio      in Period     31 March 2008 
                                                                               
1        British American Tobacco     6.2%            B/S              1       
                                                                               
2        Imperial Tobacco             5.2%            B/S              3       
                                                                               
3        BP                           4.9%            B/S              4       
                                                                               
4        BG                           4.6%            B/S              9       
                                                                               
5        British Energy               4.4%             S               5       
                                                                               
6        Royal Dutch Shell            4.4%             S               7       
                                                                               
7        GlaxoSmithKline              3.8%             S               6       
                                                                               
8        Drax                         3.8%             S              12       
                                                                               
9        Vodafone                     3.8%            B/S              8       
                                                                               
10       Reynolds American            3.8%             S               2       
                                                                               
         - US Common Stock                                                     

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 30 June 2008                                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

15 July 2008