Portfolio Update

Keystone Investment Trust plc                         

Headline: Monthly Performance

Fact Sheet 31 December 2005

Sector Breakdown

Resources                                              0.0%               
                                                                          
Basic Industries                                       3.1%               
                                                                          
General Industrials                                    1.6%               
                                                                          
Cyclical Consumer Goods                                0.0%               
                                                                          
Non-cyclical Consumer Goods                            28.2%              
                                                                          
Cyclical Services                                      22.0%              
                                                                          
Non-Cyclical Services                                  10.5%              
                                                                          
Utilities                                              19.1%              
                                                                          
Financials                                             12.6%              
                                                                          
Information Technology                                 2.9%               
                                                                          
Fixed Interest                                         0.0%               
                                                                          
                                                       100.0%             

Statistics

Total Gross         191.5      Dividend (p)               31.50
Assets (£m)                                                    
                                                               
Ordinary Shares:               Dividend Yield              3.1%
                                                               
- Mid Market      1,025.5      Asset Gearing*               117
Price (p)                                                      
                                                               
- Net Asset Value 1,134.6      Asset Gearing*               117
(p)                                                            
                                                               
Discount             9.6%      (excluding fixed                
                               interest securities)            

* Asset Gearing reflects the amount of loans invested in the portfolio. A
figure of 100 means that the Company has no gearing.

Top 10 Equity Holdings incl convertibles * % of Portfolio

1. BT Group                                            5.5%               
                                                                          
2. Reynolds American Inc                               4.4%               
                                                                          
3. GlaxoSmithkline                                     4.1%               
                                                                          
4. Altria                                              3.8%               
                                                                          
5. Brit American Tobacco                               3.3%               
                                                                          
6. Tesco                                               3.3%               
                                                                          
7. Reuters                                             2.7%               
                                                                          
8. Imperial Tobacco                                    2.7%               
                                                                          
9. Hiscox                                              2.3%               
                                                                          
10. Reed Elsevier                                      2.3%               

Figures as at 31 December

* Ordinary Shares unless stated otherwise

Ordinary Share Performance

                              Since 01/01/03     1 Year     3 Years     5 Years
                                           *                                   
                                                                               
Share Price                          +125.4%     +22.7%     +125.4%      +16.2%
                                                                               
NAV                                  +103.3%     +25.8%     +103.3%      +12.3%
                                                                               
Benchmark (FTSE All Share)            +66.4%     +22.0%      +66.4%      +11.6%

* With effect from 1 January 2003 INVESCO Asset Management Limited was
appointed Investment Manager of the Company

Figures supplied by INVESCO Marketing / Datastream = Total Return

                                                                 6 January 2006