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011 C020001 MA
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<PAGE> PAGE 2
012 A000001 KEYSTONE INVESTOR RESOURCE CENTER
012 B000001 84-1571
012 C010001 BOSTON
012 C020001 MA
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<PAGE> PAGE 3
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022 A000006 LEHMAN BROS. INC.
022 C000006 26078
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022 A000007 BANK OF NEW YORK
022 B000007 13-5160382
022 C000007 4248
022 D000007 29467
022 A000008 UBS SECURITIES, INC.
022 B000008 13-2932996
022 C000008 12082
022 D000008 15745
022 A000009 DONALDSON, LUFKIN & JENRETTE
022 B000009 13-2741729
022 C000009 13523
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<PAGE> PAGE 4
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<PAGE> PAGE 9
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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 QUALITY BOND FUND (B-1) CLASS A
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-START> NOV-01-1995
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 221,647,709
<INVESTMENTS-AT-VALUE> 226,433,309
<RECEIVABLES> 2,920,851
<ASSETS-OTHER> 586,851
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 229,941,011
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,291,852
<TOTAL-LIABILITIES> 1,291,852
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 255,530,019
<SHARES-COMMON-STOCK> 15,055,747
<SHARES-COMMON-PRIOR> 20,148,901
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (399,985)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (31,308,109)
<ACCUM-APPREC-OR-DEPREC> 4,827,234
<NET-ASSETS> 228,649,159
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 18,504,392
<OTHER-INCOME> 0
<EXPENSES-NET> (5,114,331)
<NET-INVESTMENT-INCOME> 13,390,061
<REALIZED-GAINS-CURRENT> (2,183,664)
<APPREC-INCREASE-CURRENT> (1,936,653)
<NET-CHANGE-FROM-OPS> 9,269,744
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (13,289,851)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> (950,184)
<NUMBER-OF-SHARES-SOLD> 2,902,677
<NUMBER-OF-SHARES-REDEEMED> (8,577,419)
<SHARES-REINVESTED> 581,588
<NET-CHANGE-IN-ASSETS> (82,142,329)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (575,212)
<OVERDIST-NET-GAINS-PRIOR> (29,049,428)
<GROSS-ADVISORY-FEES> (1,578,211)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (5,114,331)
<AVERAGE-NET-ASSETS> 264,449,336
<PER-SHARE-NAV-BEGIN> 15.42
<PER-SHARE-NII> 0.75
<PER-SHARE-GAIN-APPREC> (0.16)
<PER-SHARE-DIVIDEND> (0.76)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> (0.06)
<PER-SHARE-NAV-END> 15.19
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Trustees and Shareholders
Keystone Quality Bond Fund (B-1)
In planning and performing our audit of the financial statements of Keystone
Quality Bond Fund (B-1) for the year ended October 31, 1996, we considered their
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
N-SAR, not to provide assurance on the internal control structure.
The management Keystone Quality Bond Fund (B-1) of is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments made by management 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
October 31, 1996.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
KPMG Peat Marwick LLP
Boston, Massachusetts
December 19, 1996
<PAGE>
