Interim Management Statement

Keystone Investment Trust plc

                         Interim Management Statement                          

                    for the three months ended 30 June 2010                    

Material Events

On 4 June 2010, the Company announced its intention to redeem £3,000,000
11.375% Debenture Stock 2010/2015 and £5,000,000 10.25% Debenture Stock 2010 on
1 October 2010. Further details are given under `Assets and Gearing' below.

No other material events occurred in the period.

Dividends

No dividends were paid in the period, but an interim dividend of 17.5p per
ordinary share was paid on 30 March 2010 to shareholders on the register on 12
March 2010.

Performance - Total Return

                            3 Months     1 Year      3 Years      5 Years   
                                                                            
Share Price                  +0.7%       +16.3%       +1.8%        +46.4%   
                                                                            
Net Asset Value              -5.2%       +21.3%       -8.6%        +34.2%   
                                                                            
FTSE All-Share Index         -11.8%      +21.1%       -16.2%       +18.7%   

Source: Morningstar

Share Price and Discount

                               At        For the Three Months     30 June 2010
                                                 Ended                        
                                                                              
                             30-Jun-10         High         Low        Average
                                                                              
Share Price (pence)            1027.00      1055.00       978.00       1025.87
                                                                              
Discount (debt at par)            7.0%                                        
                                                                              
Discount (debt at fair            5.4%                                        
value)                                                                        

Source: Fundamental Data

Assets and Gearing

                                              30-Jun-10   31-Mar-10     Change 
                                                                               
Total Gross Assets (£m)                           187.5       193.7       -3.2%
                                                                               
of which cash and Certificates of Deposit          28.4        28.5            
(£m)                                                                           
                                                                               
Borrowings (£m)                                    39.9        39.8            
                                                                               
Cum Income Net Asset Value (pence)               1104.2      1151.3       -4.1%
                                                                               
Effective Gearing                                   108         107            

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

The Company's structured debt remains unchanged for the time being 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

On 1 October 2010, the Company intends to redeem all of the outstanding £
3,000,000 11.375% debenture stock 2010/2015 and £5,000,000 10.25% debenture
stock 2010 in accordance with the trust deed between the Company and the
Trustee (The Prudential Assurance Company Limited). Each of these two debenture
stocks will be redeemed at par together with accrued interest up to and
including the redemption date of 1 October 2010. Thereafter, the two debenture
stocks will be cancelled and the Company does not intend to re-issue such
redeemed stock.

Sector Breakdown of Portfolio (excluding Cashand Certificates of Deposit)

                            30-Jun-10   31-Mar-10
                                                 
Consumer Goods                  19.4%       19.7%
                                                 
Industrials                     16.0%       18.7%
                                                 
Utilities                       14.8%       12.9%
                                                 
Healthcare                      13.9%       13.7%
                                                 
Financials                      13.0%       10.1%
                                                 
Telecommunications               9.3%        9.1%
                                                 
Consumer Services                7.6%        8.0%
                                                 
Oil & Gas                        4.6%        5.8%
                                                 
Technology                       0.9%        1.4%
                                                 
Basic Materials                  0.4%        0.5%
                                                 
Fixed Interest                   0.1%        0.1%
                                                 
                               100.0%      100.0%

Top Ten Holdings

 Ranking  Investments               % of         Bought/(Sold) in  Ranking at 
   now                              Portfolio         Period       31-Mar-10  
                                                                              
    1     AstraZeneca                  5.4%             -              4      
                                                                              
    2     Reynolds American - US       5.1%             -              2      
          Common Stock                                                        
                                                                              
    3     British American             5.0%             S              1      
          Tobacco                                                             
                                                                              
    4     Imperial Tobacco             4.6%             -              6      
                                                                              
    5     BG                           4.6%             -              3      
                                                                              
    6     Vodafone                     4.5%             -              5      
                                                                              
    7     GlaxoSmithKline              4.2%             S              7      
                                                                              
    8     BT                           3.6%             -              10     
                                                                              
    9     Capita                       3.5%             -              9      
                                                                              
   10     Tesco                        3.1%             -              8      

All ordinary shares unless otherwise stated

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

27 July 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