Month End Performance

MERCURY KEYSTONE INVESTMENT TRUST PLC
7 October 1999

PERFORMANCE AT MONTH END

MERCURY KEYSTONE INVESTMENT TRUST plc

All information is at 30th September 1999 and unaudited.

Performance at month end with net income reinvested
                        Three     One     Three        Five
                       months    year     years        years
Net asset value          -6.8%  +18.1%    +51.8%      +121.9%
Share price              -8.6%  +14.1%    +44.6%      +117.1%
FTSE All-Share Index     -3.0%  +24.2%    +58.7%      +119.5%

At month end
Net asset value*                    1201.55p 
Share price:                        1120.00p
Discount:                              6.8%
Total assets:                       £211.57m
Net yield:                             2.4%
Gearing:                              23.5%
Effective gearing:                    19.7%
Value of debt:                       £40.0m
Ordinary shares in issue:         14,302,562
*includes current year net revenue     

UK Sectors                   % Portfolio
Financials                          25.0
Non-Cyclical Consumer Goods         18.5
Cyclical Services                   17.4
Resources                           10.6
Non-Cyclical Services               10.5
General Industrials                  6.0
Basic Industries                     4.6
Utilities                            4.5
Cash/Fixed interest                  2.9
                                   -----
Total                              100.0

Ten Largest Equity Investments
Company                   % Investments

BP Amoco                            5.9
Shell Transport and Trading         3.7
British Telecom                     3.6
Vodafone Airtouch                   3.5
Glaxo Wellcome                      3.5
SmithKline Beecham                  2.9
HSBC                                2.5
CGU                                 2.5
Lloyds TSB Group                    2.4
Cable & Wireless                    2.3
                                   ____
Total                              32.8

Sources: Mercury Asset Management Ltd, Micropal
Latest information is available by typing 'MAMINDEX' on Reuters, 'MAMI' on
Bloomberg or '8800' on Topic 3 (ICV terminal).

7th October 1999