Portfolio Update

Keystone Investment Trust plc                         

Headline: Monthly Performance

Fact Sheet 31July 2005

Sector Breakdown

Resources                                              0.0%               
                                                                          
Basic Industries                                       3.3%               
                                                                          
General Industrials                                    1.9%               
                                                                          
Cyclical Consumer Goods                                0.0%               
                                                                          
Non-cyclical Consumer Goods                            28.2%              
                                                                          
Cyclical Services                                      20.2%              
                                                                          
Non-Cyclical Services                                  14.0%              
                                                                          
Utilities                                              17.8%              
                                                                          
Financials                                             11.7%              
                                                                          
Information Technology                                 2.9%               
                                                                          
Fixed Interest                                         0.0%               
                                                                          
                                                       100.0%             

Statistics

Total Gross         175.1      Dividend (p)               30.00
Assets (£m)                                                    
                                                               
Ordinary Shares:               Dividend Yield              3.4%
                                                               
- Mid Market        892.0      Asset Gearing*               117
Price (p)                                                      
                                                               
- Net Asset Value 1,011.7      Asset Gearing*               117
(p)                                                            
                                                               
Discount            11.8%      (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. GlaxoSmithkline                                     4.8%               
                                                                          
3. Reynolds American Inc                               4.8%               
                                                                          
4. Altria                                              3.7%               
                                                                          
5. Brit American Tobacco                               3.6%               
                                                                          
6. Tesco                                               3.3%               
                                                                          
7. Reuters                                             2.6%               
                                                                          
8 Scottish Power                                       2.2%               
                                                                          
9 Rexam                                                2.2%               
                                                                          
10. ICI                                                2.1%               

Figures as at 31 July

* Ordinary Shares unless stated otherwise

Ordinary Share Performance

                              Since 01/01/03     1 Year     3 Years     5 Years
                                           *                                   
                                                                               
Share Price                           +92.4%     +27.1%      +78.7%       +2.2%
                                                                               
NAV                                   +78.3%     +29.0%      +67.6%       -3.0%
                                                                               
Benchmark (FTSE All Share)            +52.6%     +24.7%      +42.7%       +0.6%

* 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

                                                                    5 July 2005