Interim Management Statement

Keystone Investment Trust plc

Interim Management Statement

for the three months ended 30 June 2011

Material Events

No material events occurred in the period.

Dividends

In the period, an interim dividend of 17.5p per ordinary share was paid on 24
June 2011 to shareholders on the register on 3 June 2011.

Performance - Total Return

                             3 Months       1 Year      3 Years      5 Years
                                                                            
Share Price                     +9.6%       +26.3%       +43.7%       +50.1%
                                                                            
Net Asset Value                 +5.9%       +23.8%       +30.9%       +36.6%
                                                                            
FTSE All-Share Index            +1.9%       +25.6%       +21.0%       +24.6%

Source: Fundamental Data

Share Price and Discount

                                    At  For the Three Months Ended 30 June 2011
                                                                               
                             30-Jun-11          High          Low       Average
                                                                               
Share Price (pence)            1249.00       1280.00      1165.00       1223.94
                                                                               
Discount (debt at par)            5.3%                                         
                                                                               
Discount (debt at fair            3.9%                                         
value)                                                                         

Source: Fundamental Data

Assets and Gearing

                                                30-Jun-11                      
                                                                               
Total Gross Assets (£m)                             208.2                      
                                                                               
of which cash and Certificates of Deposit(£          12.0                      
m)                                                                             
                                                                               
Borrowings (£m)                                      32.0                      
                                                                               
Cum Income Net Asset Value (pence)                 1318.8                      
                                                                               
Effective Gearing                                     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 is provided by 250,000 5% cumulative preference
shares of £1 each and the following debentures totalling £32 million:

- £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-Jun-11             
                                                   
Consumer Goods                   18.3%             
                                                   
Healthcare                       16.5%             
                                                   
Industrials                      15.9%             
                                                   
Financials                       12.8%             
                                                   
Utilities                        11.1%             
                                                   
Telecommunications               10.9%             
                                                   
Consumer Services                 9.1%             
                                                   
Oil & Gas                         4.5%             
                                                   
Basic Materials                   0.6%             
                                                   
Fixed Interest                    0.3%             
                                                   
Technology                        0.0%             
                                                   
                                100.0%             

Top Ten Holdings

Ranking    Investments                % of Portfolio                           
now                                                                            
                                                                               
1          British American Tobacco             5.1%                           
                                                                               
2          GlaxoSmithKline                      5.0%                           
                                                                               
3          BT                                   4.7%                           
                                                                               
4          Reynolds American                    4.6%                           
                                                                               
           - US Common Stock                                                   
                                                                               
5          BG                                   4.5%                           
                                                                               
6          Imperial Tobacco                     4.3%                           
                                                                               
7          Vodafone                             4.1%                           
                                                                               
8          AstraZeneca                          3.9%                           
                                                                               
9          Centrica                             2.8%                           
                                                                               
10         Capita                               2.7%                           

All ordinary shares unless otherwise stated

Changes to Share Capital

During the period the Company did not issue nor buy back any shares. The number
of ordinary shares of 50p each in issue is 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.

Administration

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.

Invesco Asset Management Limited

For and on behalf of

The Board of Keystone Investment Trust plc

26 July 2011