Portfolio Update

Keystone Investment Trust plc                         

Headline: Monthly Performance

Fact Sheet 31 May2006

Sector Breakdown

Oil & Gas                                              3.7%               
                                                                          
Basic Materials                                        2.2%               
                                                                          
Industrials                                            12.0%              
                                                                          
Consumer Goods                                         14.2%              
                                                                          
Health Care                                            12.7%              
                                                                          
Consumer Services                                      12.9%              
                                                                          
Telecommunications                                     8.7%               
                                                                          
Utilities                                              23.0%              
                                                                          
Financials                                             8.6%               
                                                                          
Technology                                             2.0%               

Statistics

Total Gross         193.1      Dividend (p)               31.50
Assets (£m)                                                    
                                                               
Ordinary Shares:               Dividend Yield              3.1%
                                                               
- Mid Market      1,006.0      Asset Gearing*               119
Price (p)                                                      
                                                               
- Net Asset Value 1,146.5      Asset Gearing*               119
(p)                                                            
                                                               
Discount            12.2%      (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                                            5.9%               
                                                                          
2. GlaxoSmithKline                                     5.6%               
                                                                          
3. Reynolds American Inc                               4.3%               
                                                                          
4. Royal Dutch Shell                                   3.8%               
                                                                          
5. Tesco                                               3.3%               
                                                                          
6. Altria                                              3.3%               
                                                                          
7. British Energy                                      3.2%               
                                                                          
8. Brit American Tobacco                               2.9%               
                                                                          
9. Vodafone                                            2.8%               
                                                                          
10. Centrica                                           2.6%               

Figures as at 31 May

* Ordinary Shares unless stated otherwise

Ordinary Share Performance

                              Since 01/01/03     1 Year     3 Years     5 Years
                                           *                                   
                                                                               
Share Price                          +124.3%     +23.3%      +96.1%      +21.1%
                                                                               
NAV                                  +108.0%     +23.6%      +89.2%      +24.7%
                                                                               
Benchmark (FTSE All Share)            +73.1%     +21.3%      +63.3%      +21.7%

* 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

                                                                    7 June 2006