Month End Performance

MERCURY KEYSTONE INVESTMENT TRUST PLC
7 September 1999

All information is at 31st August 1999 and unaudited.

Performance at month end with net income reinvested
                        Three     One     Three        Five
                       months    year     years       years
Net asset value          +2.2%  +22.8%    +64.9%     +124.5%
Share price              -0.3%  +19.6%    +54.2%     +115.9%       
FTSE All-Share Index     +2.4%  +23.6%    +67.0%     +111.6%

At month end
Net asset value                     1273.82p 
includes current year net revenue     23.07p
Share price:                        1207.50p
Discount:                              5.2%
Total assets:                       £221.91m
Net yield:                             2.2%
Gearing:                              22.0%       
Effective gearing:                    19.1%
Value of debt:                       £40.0m
Ordinary shares in issue:         14,302,562       

UK Sectors                   % Portfolio
Financials                          26.6
Non-Cyclical Consumer Goods         20.3
Cyclical Services                   17.0
Non-Cyclical Services                9.8
Resources                            9.8
Basic Industries                     5.0
General Industrials                  4.9
Utilities                            4.3
Cash/Fixed interest                  2.3
                                   -----
Total                              100.0

Ten Largest Equity Investments
Company                   % Investments

BP Amoco                            5.3
Shell Transport and Trading         3.8
British Telecom                     3.5
Glaxo Wellcome                      3.4
SmithKline Beecham                  3.2
Vodafone Airtouch                   2.9
HSBC                                2.7
Lloyds TSB Group                    2.6
Cable & Wireless                    2.4
CGU                                 2.3
                                   ____
Total                              32.1

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).