Interim Management Statement

Keystone Investment Trust plc

                         Interim Management Statement                          

                  for the three months ended 31 December2008                   

Material Events

No material events occurred in the period.

Dividends

In the period, a final dividend of 27p per ordinary share was declared and paid
on 22 December 2008 to shareholders on the register on 21 November 2008.

Performance - Total Return

                                3 Months       1 Year      3 Years      5 Years
                                                                               
Share Price                         2.2%       -16.7%         1.7%        57.1%
                                                                               
Net Asset Value                    -2.0%       -20.2%        -1.4%        53.6%
                                                                               
FTSE All-Share Index              -10.2%       -29.9%       -13.8%        18.7%

Source: Fundamental Data

Share Price and Discount

                                         For the Three Months Ended 31 Dec 2008
                                                                               
                      As at 31 Dec 2008      High         Low        Average   
                                                                               
Share Price (pence)   932.50                995.00       818.00       891.5    
                                                                               
Discount              -8.3%                                                    
                                                                               
(debt at par)                                                                  
                                                                               
Discount              -5.2%                                                    
                                                                               
(debt at fair value)                                                           

Source: Fundamental Data

Assets and Gearing

                                         31 Dec 2008      30 Sep 2008    Change
                                                                               
Total Gross Assets (£m)                        175.8            184.7     -4.8%
                                                                               
of which cash and Certificates of               25.4             42.9          
                                                                               
Deposit (£m)                                                                   
                                                                               
Borrowings (£m)                                 39.8             39.8          
                                                                               
Cum Income Net Asset Value (pence)            1017.3          *1056.9     -3.7%
                                                                               
Effective Gearing                                111               98          

* 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.

The Company's structured debt remains unchanged and is provided by 250,000 5%
cumulative preference shares of £1 each and the following long-term debentures
totalling £40 million:

£5,000,000 10.25% debenture stock 2010

£3,000,000 11.375% debenture stock 2010/2015

£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 2008        30 Sep 2008
                                                            
Consumer Goods                      16.5%              17.6%
                                                            
Utilities                           16.3%              17.3%
                                                            
Oil & Gas                           16.0%              13.8%
                                                            
Health Care                         11.6%              11.0%
                                                            
Consumer Services                    8.9%               9.8%
                                                            
Telecommunications                   8.9%               7.0%
                                                            
Financials                           8.4%               8.7%
                                                            
Industrials                          6.8%               9.9%
                                                            
Fixed Interest                       4.2%               1.4%
                                                            
Technology                           2.0%               2.3%
                                                            
Basic Materials                      0.4%               1.2%

Top Ten Holdings

Ranking  Top Ten Holdings             % of        Bought/Sold     Ranking at   
                                                                               
Now                                 Portfolio      in Period      30 Sep 2008  
                                                                               
1        British American Tobacco     5.7%             S               1       
                                                                               
2        BG                           5.5%             B               5       
                                                                               
3        Vodafone                     5.4%            B/S              9       
                                                                               
4        BP                           5.1%            B/S              7       
                                                                               
5        Imperial Tobacco             5.0%             S               2       
                                                                               
6        British Energy               4.8%                             3       
                                                                               
7        Reynolds American            4.6%            B/S              4       
                                                                               
         - US Common Stock                                                     
                                                                               
8        GlaxoSmithKline              4.6%             B               6       
                                                                               
9        Astrazeneca                  4.6%            B/S             12       
                                                                               
10       Tesco                        3.9%            B/S             11       

All ordinary shares unless otherwise stated

Changes to Share Capital

                               Ordinary Shares of 50p each
                                                          
                                                    Issued
                                                          
As at 30 Sep 2008                               13,368,799
                                                          
Shares bought back                                       0
                                                          
Shares issued                                            0
                                                          
As at 31 Dec 2008                               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

15 January 2009

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