Interim Management Statement

Keystone Investment Trust plc

                         Interim Management Statement                          

                  for the three months ended 31 December 2009                   

Material Events

No material events occurred in the period.

Dividends

In the period, a final dividend of 28p per ordinary share was declared and paid
on 22 December 2009 to shareholders on the register on 20 November 2009.

In addition, a special dividend of 11.1p per ordinary share was paid on 22
December 2009 to shareholders on the register on 20 November 2009, in respect
of VAT refunds received.

Performance - Total Return

                                3 Months       1 Year      3 Years      5 Years
                                                                               
Share Price                         2.1%        12.4%        -2.2%        40.2%
                                                                               
Net Asset Value                     7.4%        17.9%        -1.3%        45.7%
                                                                               
FTSE All-Share Index                5.5%        30.1%        -4.0%        36.8%

Source: Fundamental Data

Share Price and Discount

                                         For the Three Months Ended 31 Dec 2009
                                                                               
                      As at 31 Dec 2009      High         Low        Average   
                                                                               
Share Price (pence)   990.00               1060.00       940.50       979.3    
                                                                               
Discount              (12.5%)                                                  
                                                                               
(debt at par)                                                                  
                                                                               
Discount              (11.4%)                                                  
                                                                               
(debt at fair value)                                                           

Source: Fundamental Data

Assets and Gearing

                                         31 Dec 2009      30 Sep 2009    Change
                                                                               
Total Gross Assets (£m)                        191.1            190.1      0.5%
                                                                               
of which cash and Certificates of               29.0             24.8          
                                                                               
Deposit (£m)                                                                   
                                                                               
Borrowings (£m)                                 39.8             39.8          
                                                                               
Cum Income Net Asset Value (pence)            1131.7          *1084.8      4.3%
                                                                               
Effective Gearing                                107              105          

* Ex-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 structured debt remains unchanged and is provided by 250,000 5%
cumulative preference shares of £1 each and the following 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 Cashand Certificates of Deposit)

                              31 Dec 2009        30 Sep 2009
                                                            
Consumer Goods                      19.2%              17.3%
                                                            
Utilities                           16.3%              12.6%
                                                            
Industrials                         13.9%              13.6%
                                                            
Health Care                         13.8%              13.4%
                                                            
Telecommunications                  10.2%              10.0%
                                                            
Financials                           9.5%              10.6%
                                                            
Oil & Gas                            8.5%               9.0%
                                                            
Consumer Services                    6.3%               5.8%
                                                            
Technology                           1.5%               1.8%
                                                            
Basic Materials                      0.7%               1.2%
                                                            
Fixed Interest                       0.1%               4.7%
                                                            
                                   100.0%             100.0%

Top Ten Holdings

Ranking  Top Ten Holdings             % of        Bought/Sold     Ranking at   
                                                                               
Now                                 Portfolio      in Period      30 Sep 2009  
                                                                               
1        BG                           5.5%             S               1       
                                                                               
2        Reynolds American            5.2%             S               7       
                                                                               
         - US Common Stock                                                     
                                                                               
3        AstraZeneca                  5.1%             S               4       
                                                                               
4        British American Tobacco     5.1%             S               2       
                                                                               
5        Vodafone                     5.1%             S               3       
                                                                               
6        Imperial Tobacco             4.9%             S               5       
                                                                               
7        GlaxoSmithKline              4.9%             S               6       
                                                                               
8        BT                           4.0%             S               8       
                                                                               
9        Tesco                        3.5%             S               9       
                                                                               
10       National Grid                3.3%             S              11       

All ordinary shares unless otherwise stated

Changes to Share Capital

                               Ordinary Shares of 50p each
                                                          
                                                    Issued
                                                          
As at 30 Sep 2009                               13,368,799
                                                          
Shares bought back                                       0
                                                          
Shares issued                                            0
                                                          
As at 31 Dec 2009                               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

22 January 2010

Registered Office

30 Finsbury Square, London, EC2A 1AG

Telephone: [phone]

Facsimile: 020 7065 3166

Registered in England No 538179

An Investment Company under Section 833

of the Companies Act 2006