Performance Report - Month to 31st December 1999

Mercury Keystone Investment Trust PLC
12 January 2000

All information is at 31st December 1999 and unaudited.

Performance at month end with net income reinvested
                        Three     One     Three       Five
                       months    year     years       years
Net asset value        +11.9%   +19.4%    +65.4%     +145.1%
Share price            + 4.1%   - 2.6%    +44.2%     +113.6%
FTSE All-Share Index   +15.1%   +24.3%    +74.7%     +148.9%

At month end
Net asset value*                     1321.56p
Share price:                         1146.00p
Discount:                              13.28%
Total assets:                        £228.75m
Net yield:                              2.6%
Gearing:                               20.9%
Effective gearing:                     19.2%
Value of debt:                        £40.0m
Ordinary shares in issue:         14,302,562
* Includes current year net revenue    2.81p

UK Sectors                       % Portfolio
Financials                             23.3
Cyclical Services                      16.5
Non-Cyclical Services                  15.2
Resources                              12.9
Non-Cyclical Consumer Goods            12.2
General Industrials                    10.1
Basic Industries                        5.0
Utilities                               4.3
Cash/Fixed interest                     0.5
                                      -----
Total                                 100.0
                                      -----

Ten Largest Equity Investments
Company                          % Investments

BP Amoco                                6.6
British Telecom                         6.5
Vodafone Airtouch                       5.1
Shell Transport and Trading             4.2
Glaxo Wellcome                          3.8
SmithKline Beecham                      2.9
HSBC                                    2.8
Cable & Wireless                        2.5
CGU                                     2.4
Mercury Grosvenor Trust                 2.2
                                       ----
Total                                  39.0
                                       ----

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).