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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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SIGNATURE J. KEVIN KENELY
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> KEYSTONE INSTITUTIONAL SMALL CAPITALIZATION GROWTH FUND CLASS A
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> DEC-28-1995
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 2,112,549
<INVESTMENTS-AT-VALUE> 2,428,841
<RECEIVABLES> 39,286
<ASSETS-OTHER> 332
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2,468,459
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 22,558
<TOTAL-LIABILITIES> 22,558
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,100,000
<SHARES-COMMON-STOCK> 210,000
<SHARES-COMMON-PRIOR> 210,000
<ACCUMULATED-NII-CURRENT> 36,922
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (7,313)
<ACCUM-APPREC-OR-DEPREC> 316,292
<NET-ASSETS> 2,445,901
<DIVIDEND-INCOME> 1,943
<INTEREST-INCOME> 4,577
<OTHER-INCOME> 0
<EXPENSES-NET> (11,829)
<NET-INVESTMENT-INCOME> (5,309)
<REALIZED-GAINS-CURRENT> 34,918
<APPREC-INCREASE-CURRENT> 316,292
<NET-CHANGE-FROM-OPS> 345,901
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 210,000
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 2,445,901
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
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<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (11,829)
<AVERAGE-NET-ASSETS> 2,327,733
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> (0.03)
<PER-SHARE-GAIN-APPREC> 1.68
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</TABLE>
The Trvstees and Shareholders
Keystone Institutional Trust
In planning and performing our audit of the financial statements of Keystone
Institutional Small Capitalization Growth Fund, a series of shares of Keystone
Institutional Trust, for the year ended June 30, 1996, we considered its
internal control structure, including procedures for safeguarding securities, in
order to determine our auditing procedures for the purpose of expressing an
opinion on the financial statements and to comply with the requirements of Form
NSAR, not to provide assurance on the internal control structure.
The management of Keystone Institutional Small Capitalization Growth Fund is
responsible for establishing and maintaining an internal control structure. In
fulfilling this responsibility, estimates and judgements made by managements are
required to assess the expected benefits and related costs of internal control
structure policies and procedures. Two of the objectives of an internal control
structure are to provide management with reasonable, but not absolute, assurance
that assets are safeguarded against loss from unauthorized use or disposition
and that transactions are executed in accordance with management's authorization
and recorded properly to permit preparation of financial statements in
conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors and
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
June 30, 1996.
This report in intended solely for the information and use of management and the
Securities and Exchange Commission.
KPMG Peat Marwick LLP
Boston, Massachusetts
July 26, 1996
<PAGE>
