<PAGE>
SUPPLEMENT TO THE PROSPECTUSES AND
STATEMENTS OF ADDITIONAL INFORMATION OF
<TABLE>
<CAPTION>
<S> <C>
KEYSTONE CAPITAL PRESERVATION KEYSTONE STATE TAX FREE FUND
AND INCOME FUND KEYSTONE STATE TAX FREE FUND -- SERIES II
KEYSTONE GOVERNMENT SECURITIES FUND KEYSTONE LIQUID TRUST
KEYSTONE INTERMEDIATE TERM BOND FUND (THE "FUND(S)")
</TABLE>
The prospectus and statement of additional information of each Fund are
hereby supplemented as follows:
The following changes relating to each Fund's Class B shares are effective
on June 1, 1995. The changes only apply to Class B shares purchased on or after
June 1, 1995.
* With respect to each Fund, Keystone Investment Distributors Company
("Keystone") generally reallows to broker/dealers or others commissions and
service fees as follows:
* With respect to each Fund except Keystone Capital Preservation and Income
Fund ("CPI"), Keystone State Tax Free Fund ("KSTFF"), and Keystone State Tax
Free Fund Series II ("KSTFF-II"), Keystone generally reallows to brokers or
others a commission equal to 4.00% of the price paid for each Class B share
sold plus the first year's service fee in advance in the amount of 0.25% of
the price paid for each Class B share sold. Beginning approximately 12 months
after the purchase of a Class B share, the broker or other party will receive
service fees at an annual rate of 0.25% of the average daily net asset value
of such Class B share maintained by the recipient outstanding on the books of
the Fund for specified periods.
* With respect to CPI, Keystone generally reallows to brokers or others a
commission equal to 2.75% of the price paid for each Class B share sold plus
the first year's service fee in advance in the amount of 0.25% of the price
paid for each Class B share sold. Beginning approximately 12 months after the
purchase of a Class B share, the broker or other party will receive service
fees at an annual rate of 0.25% of the average daily net asset value of such
Class B share maintained by the recipient outstanding on the books of the
Fund for specified periods.
* With respect to KSTFF and KSTFF-II, Keystone generally reallows to brokers or
others a commission equal to 4.00% of the price paid for each Class B share
sold plus the first year's service fee in advance in the amount of 0.15% of
the price paid for each Class B share sold. Beginning approximately 12 months
after the purchase of a Class B share, the broker or other party will receive
service fees at an annual rate of 0.15% of the average daily net asset value
of such Class B share maintained by the recipient outstanding on the books of
the Fund for specified periods.
* For the period June 1, 1995 to August 31, 1995, Keystone will reallow an
increased commission equal to 4.75% (4.85% for KSTFF and KSTFF-II and 3.50%
for CPI) of the price paid for each Class B share sold to those
broker/dealers or others who allow their individual selling representatives
to participate in the additional commission.
* With the exception of CPI, a contingent deferred sales charge ("CDSC"), if
applicable, is imposed on Class B shares purchased on or after June 1, 1995
as follows:
DEFERRED
SALES
CHARGE
REDEMPTION TIMING IMPOSED
---------------- --------
First twelve month period following month of purchase .... 5.00%
Second twelve month period following month of purchase ... 4.00%
Third twelve month period following month of purchase .... 3.00%
Fourth twelve month period following month of purchase ... 3.00%
Fifth twelve month period following month of purchase .... 2.00%
Sixth twelve month period following month of purchase .... 1.00%
No deferred sales charge is imposed on amounts redeemed thereafter.
* With respect to CPI, a CDSC is imposed, if applicable, on Class B shares
purchased on or after June 1, 1995 as follows:
DEFERRED
SALES
CHARGE
REDEMPTION TIMING IMPOSED
---------------- --------
First twelve month period following month of purchase .... 3.00%
Second twelve month period following month of purchase ... 3.00%
Third twelve month period following month of purchase .... 2.00%
Fourth twelve month period following month of purchase ... 1.00%
No deferred sales charge is imposed on amounts redeemed thereafter.
* Class B shares purchased on or after June 1, 1995 that are outstanding for
eight years following the month of purchase will automatically convert to
Class A shares without the imposition of a front-end sales charge or exchange
fee. Class B shares purchased prior to June 1, 1995 will retain their
existing conversion or exchange rights.
* In connection with financing its distribution costs, including commission
advances to dealers and others, Keystone has sold to a financial institution
substantially all of its 12b-1 fee collection rights and contingent deferred
sales charge collection rights in respect of Class B shares sold during the
two-year period commencing approximately June 1, 1995. Each Fund has agreed
not to reduce the rate of payment of 12b-1 fees in respect of such Class B
shares unless it terminates such shares' Distribution Plan completely. If it
terminates such Distribution Plan, the Fund may be subject to possible
adverse distribution consequences.
June 1, 1995
AMER6-SK
