Interim Management Statement

Keystone Investment Trust plc

                         Interim Management Statement                          

                  for the three months ended 31 December2011                   

Material Events

No material events specifically in relation to the Company occurred in the
period.

Dividends

In the period a final dividend of 29p per ordinary share was paid on 23
December 2011 to shareholders on the register on 25 November 2011.

Performance - Total Return

                                3 Months       1 Year      3 Years      5 Years
                                                                               
Share Price                         3.7%         2.6%        41.0%        22.7%
                                                                               
Net Asset Value                     6.7%         4.5%        41.1%        18.2%
                                                                               
FTSE All-Share Index                8.4%        -3.5%        43.9%         6.2%

Source: Thomson Reuters

Share Price and Discount

                                         For the Three Months Ended 31 Dec 2011
                                                                               
                      As at 31 Dec 2011      High         Low        Average   
                                                                               
Share Price (pence)   1146.50              1202.50      1076.00      1140.74   
                                                                               
Discount              8.8%                                                     
                                                                               
(debt at par)                                                                  
                                                                               
Discount              5.7%                                                     
                                                                               
(debt at fair value)                                                           

Source: Thomson Reuters

Assets and Gearing

                                          31 Dec 2011
                                                     
Total Gross Assets (£m)                         200.0
                                                     
of which cash and Certificates of                15.0
                                                     
Deposit (£m)                                         
                                                     
Borrowings (£m)                                  31.9
                                                     
Cum Income Net Asset Value per share           1257.5
(pence)                                              
                                                     
Gross Gearing                                     19%
                                                     
Net Gearing                                       10%

`Gross Gearing' reflects the amount of gross borrowings in use by a company and
takes no account of any cash balances. It is based on gross borrowings as a
percentage of shareholders' funds.

`Net Gearing' reflects the amount of net borrowings invested, i.e. borrowings
less cash and bond holdings. It is based on net borrowings as a percentage of
shareholders' funds.

Sector Breakdown of Portfolio (excluding Cashand Certificates of Deposit)

                               31 Dec 2011
                                          
Consumer Goods                       20.1%
                                          
Healthcare                           17.9%
                                          
Industrials                          14.4%
                                          
Financials                           14.1%
                                          
Telecommunications                   11.3%
                                          
Utilities                             9.1%
                                          
Consumer Services                     8.1%
                                          
Oil & Gas                             4.3%
                                          
Basic Materials                       0.4%
                                          
Fixed Interest                        0.3%
                                          
                                    100.0%

Top Ten Holdings

                             % of     
                                      
                           Portfolio  
                                      
Reynolds American            5.3%     
                                      
- US Common Stock                     
                                      
Imperial Tobacco             5.3%     
                                      
British American Tobacco     5.2%     
                                      
GlaxoSmithKline              5.1%     
                                      
BT                           4.6%     
                                      
Vodafone                     4.6%     
                                      
BG                           4.3%     
                                      
AstraZeneca                  4.1%     
                                      
Roche                        3.6%     
                                      
-Swiss Common Stock                   
                                      
Reckitt Benckiser            3.0%     

All ordinary shares unless otherwise stated

Changes to Share Capital

                               Ordinary Shares of 50p each
                                                          
                                                    Issued
                                                          
As at 30 Sep 2011                               13,368,799
                                                          
Shares bought back                                       0
                                                          
Shares issued                                            0
                                                          
As at 31 Dec 2011                               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.

For and on behalf of

Invesco Asset Management Limited

20 January 2012

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