Performance Report - October

Mercury Keystone Inv Trust PLC
9 November 1999

MERCURY KEYSTONE INVESTMENT TRUST plc
All information is at 29th October 1999 and unaudited.

Performance at month end with net income reinvested
                        Three     One     Three        Five
                       months    year     years       years
Net asset value          -4.6%  +13.0%    +52.3%     +119.9%
Share price              -4.4%  + 5.0%    +46.7%     +113.7%       
FTSE All-Share Index     -0.1%  +18.8%    +61.2%     +120.5%

At month end
Net asset value*                    1207.53p 
Share price:                        1121.00p
Discount:                              7.2%
Total assets:                       £212.43m
Net yield:                             2.4%
Gearing:                              23.4%       
Effective gearing:                    19.4%
Value of debt:                       £40.0m
Ordinary shares in issue:         14,302,562       
*includes revenue items accrued to date                                       
 
UK Sectors                   % Portfolio
Financials                          25.7
Non-Cyclical Consumer Goods         17.4
Cyclical Services                   14.7
Non-Cyclical Services               11.7
Resources                           11.6
Basic Industries                     8.1
General Industrials                  4.4
Utilities                            4.4
Cash/Fixed interest                  2.0
                                   -----
Total                              100.0

Ten Largest Equity Investments
Company                   % Investments

BP Amoco                            6.8
British Telecom                     4.8
Glaxo Wellcome                      3.9
Shell Transport and Trading         3.7                                       
Vodafone Airtouch                   3.4                                       
SmithKline Beecham                  3.2    
HSBC                                2.7
Lloyds TSB Group                    2.6
Cable & Wireless                    2.5
CGU                                 2.4
                                   ____
Total                              36.0

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).

9th November 1999