Interim Management Statement

Keystone Investment Trust plc

                         Interim Management Statement                          

                  for the three months ended 31 December 2010                   

Material Events

On 1 October 2010, the Company redeemed £3,000,000 11.375% Debenture Stock 2010
/2015 and £5,000,000 10.25% Debenture Stock 2010. Further details are given
under `Assets and Gearing' below.

At the end of the Annual General Meeting held on 14 December 2010, Richard
Oldfield retired as Director and Chairman of Keystone Investment Trust plc.
Beatrice Hollond has taken over as Chairman of the Company.

Since the end of the period under review, Mr John Wood has accepted his
appointment as a non-executive Director of the Company with effect from 8 March
2011. Mr Wood's last major role was as a fund manager at Artemis Investment
Management where he primarily managed institutional and hedge fund portfolios
invested in UK and Continental European securities for about five years up to
August 2009. Prior to this he was Head of UK Equities at Deutsche Asset
Management. He started his career in financial services in 1980 when he joined
S.G. Warburg & Co. Ltd. Mr Wood read Philosophy, Politics and Economics at
Trinity College, Oxford and was awarded an MBA with high distinction from
Harvard Business School in 1988. He currently holds 1,000 ordinary shares of
50p each in Keystone Investment Trust plc.

No other material events occurred in the period.

Dividends

In the period, a final dividend of 28p per ordinary share was paid on 17
December 2010 to shareholders on the register on 19 November 2010.

Performance - Total Return

                                3 Months       1 Year      3 Years      5 Years
                                                                               
Share Price                         1.8%        22.2%        14.5%        39.7%
                                                                               
Net Asset Value                     7.3%        14.7%         7.9%        32.8%
                                                                               
FTSE All-Share Index                7.4%        14.5%         4.4%        28.4%

Source: Thomson Datastream

Share Price and Discount

                                         For the Three Months Ended 31 Dec 2010
                                                                               
                      As at 31 Dec 2010      High         Low        Average   
                                                                               
Share Price (pence)   1163.00              1213.00      1110.00      1178.47   
                                                                               
Discount              6.8%                                                     
                                                                               
(debt at par)                                                                  
                                                                               
Discount              4.9%                                                     
                                                                               
(debt at fair value)                                                           

Source: Thomson Datastream

Assets and Gearing

                                         31 Dec 2010      30 Sep 2010    Change
                                                                               
Total Gross Assets (£m)                        198.7            194.0      2.4%
                                                                               
of which cash and Certificates of               20.2             28.7          
                                                                               
Deposit (£m)                                                                   
                                                                               
Borrowings (£m)                                 31.9             31.9          
                                                                               
Cum Income Net Asset Value (pence)            1248.0         * 1184.9      5.3%
                                                                               
Effective Gearing                                107              108          

* 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.

On 1 October 2010, the Company redeemed and cancelled all of the £3,000,000
11.375% debenture stock 2010/2015 and the £5,000,000 10.25% debenture stock
2010 in accordance with the respective trust deeds. Following that exercise,
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 Cashand Certificates of Deposit)

                              31 Dec 2010        30 Sep 2010
                                                            
Consumer Goods                      19.2%              19.5%
                                                            
Industrials                         16.2%              20.0%
                                                            
Healthcare                          14.9%              15.9%
                                                            
Financials                          12.3%               9.3%
                                                            
Utilities                           12.0%              10.8%
                                                            
Telecommunications                  10.6%               9.5%
                                                            
Consumer Services                    9.1%               7.6%
                                                            
Oil & Gas                            4.9%               5.5%
                                                            
Basic Materials                      0.7%               0.3%
                                                            
Fixed Interest                       0.1%               0.1%
                                                            
Technology                           0.0%               1.5%
                                                            
                                   100.0%             100.0%

Top Ten Holdings

Ranking  Top Ten Holdings             % of        Bought/Sold     Ranking at   
                                                                               
Now                                 Portfolio      in Period      30 Sep 2010  
                                                                               
1        Reynolds American            5.1%             S               2       
                                                                               
         - US Common Stock                                                     
                                                                               
2        BG                           4.9%             S               6       
                                                                               
3        BT                           4.9%            B/S              8       
                                                                               
4        British American Tobacco     4.8%             S               1       
                                                                               
5        Vodafone                     4.3%             S               5       
                                                                               
6        GlaxoSmithKline              4.3%             S               4       
                                                                               
7        Imperial Tobacco             4.3%             S               7       
                                                                               
8        Astrazeneca                  4.2%             S               3       
                                                                               
9        Tesco                        3.2%            B/S             11       
                                                                               
10       International Power          3.0%             S               9       

All ordinary shares unless otherwise stated

Changes to Share Capital

                               Ordinary Shares of 50p each
                                                          
                                                    Issued
                                                          
As at 30 Sep 2010                               13,368,799
                                                          
Shares bought back                                       0
                                                          
Shares issued                                            0
                                                          
As at 31 Dec 2010                               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

20 January 2011

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