Performance at month end

Merrill Lynch UK Inv Tst PLC
11 October 2001



MONTHLY PERFORMANCE

MERRILL LYNCH UK INVESTMENT TRUST plc

All information is at 28 September 2001 and unaudited.

Performance at month end with net income reinvested

                             One    Three        One          Three        Five
                           month   months       year          years       years

Net asset value           -15.4%   -20.3%     -29.2%         -13.1%       11.7%
Share price               -19.4%   -26.4%     -29.1%         -22.5%       -1.8%
FTSE All-Share Index       -9.4%   -13.5%     -20.8%           7.2%       37.2%

Sources: Merrill Lynch Investment Managers, Standard & Poor's Micropal

At month end

Net asset value*                                         841.90p

Share price:                                             719.50p

Discount:                                                14.5%

Total assets:                                            £156.8m

Net Yield:                                               4.2%

Gearing:                                                 33.6%

Effective gearing:                                       25.1%

Value of debt:                                           £39.5m

Ordinary shares in issue:                                14,093,562

(There were no share repurchases during the month)

UK Sectors                                                          % Portfolio

Financials                                                                23.6

Cyclical Services                                                         20.3

Non-Cyclical Consumer Goods                                               18.5

Resources                                                                 14.5

Non-Cyclical Services                                                     10.5

Basic Industries                                                           3.9

General Industrials                                                        2.6

Utilities                                                                  0.7

Cash & Fixed Interest                                                      6.4

Net current liabilities                                                   (1.0)

Total                                                                    100.0


Ten Largest Equity Investments
Company
                                                                  % Investments

BP Amoco                                                                    8.9

GlaxoSmithKline                                                             7.8

Royal Bank of Scotland                                                      6.4

AstraZeneca                                                                 5.9

Barclays                                                                    5.2

Vodafone                                                                    4.9

British Telecom                                                             4.4

Shell Transport and Trading Co                                              2.8

HSBC                                                                        2.7

Nycomed Amersham                                                            2.7

Total                                                                      51.7


Update commentary

UK Stockmarket Review

September was a difficult month for stockmarkets globally, in the wake of the
September 11 terrorist attacks on the US, with the UK proving to be no
exception. The FTSE All Share Index fell by 9.4%, as investors fled shares for
traditional 'safe haven' asset classes such as government bonds and gold.

Fund Performance Review

The Net Asset Value (NAV) of Merrill Lynch UK Investment Trust plc
underperformed during September, falling by 15.4%. Gearing and other charges
represented 3.7% of the relative underperformance and stock selection 2.3%.
Performance particularly suffered in the aftermath of the devastating
terrorist attacks on the US.

Although we had a slight defensive tilt earlier in the year in the portfolio,
we have moved into more cyclical areas in recent months, which was detrimental
to performance in September, as these areas suffered in the aftermath of the
terrorist attacks. One of the largest negative contributors was Eidos, the
computer games maker, which fell markedly on investor concerns about the
outlook for the computer games market. However, news flow after the quarter
end contradicted these concerns, causing the share price to recoup much of its
losses in October. Our low exposure to technology and telecoms (particularly
the alternative carriers) aided relative performance as shares in these
sectors continued to underperform. In contrast, our holdings in the media
sector, most notably Granada and Chrysalis fell sharply in September, as it
became apparent that the anticipated economic recovery would now be postponed.

Outlook

The terrorist attacks will undoubtedly challenge consumer confidence, reducing
the likelihood of a sustainable economic recovery in the near term. Despite
this, we believe that the outlook for the UK economy remains relatively robust
in comparison with that of continental Europe and the US. Although we remain
cautious, we continue to look for opportunities to increase our cyclical
exposure in anticipation of upturn during the second half of next year. We
believe that selected media shares are well placed to rally in such an
environment.

Latest information is available by typing www.mlim.co.uk/its on the internet,
'MLIMINDEX' on Reuters, 'MLIM' on Bloomberg or '8800' on Topic 3 (ICV
terminal).

11 October 2001