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SUPPLEMENT TO CURRENT PROSPECTUS AND
STATEMENT OF ADDITIONAL INFORMATION
OF
KEYSTONE CUSTODIAN FUND, SERIES B-2 (THE "FUND")
The Fund's Board of Trustees has approved a change in the Fund's name to
"Keystone Diversified Bond Fund (B-2)", effective May 1, 1995.
In addition, effective May 1, 1995, the section of the Fund's prospectus
entitled "Fund Objective and Policies" is hereby supplemented to reflect the
following change (to be inserted in place of the second sentence of the first
paragraph):
"The Fund will invest, under normal circumstances, at least 65% of its
total assets in bonds, debentures and income obligations that are normally
characterized by liberal returns and moderate price fluctuations.
The name of the Fund's investment adviser and certain of its affiliates will
also be changed, effective May 1, 1995. The name of the Fund's investment
adviser will become "Keystone Investment Management Company", the name of its
principal underwriter will become "Keystone Investment Distributors Company" and
the name of their parent company will become "Keystone Investments, Inc."
Furthermore, the Fund's Board of Trustees has approved a change in the
Fund's dividend payment schedule from quarterly distributions to monthly
distributions commencing in August, 1995 with the last quarterly distribution to
occur in July, 1995. Accordingly, effective August 1, 1995, the section of the
Fund's prospectus entitled "Dividends and Taxes" is hereby supplemented to
reflect the following change (to be inserted in place of the last sentence of
the first paragraph):
"The Fund will make distributions from its net investment income on or
about the 5th day of each month and net capital gains, if any, at least
annually."
Finally, the Fund's prospectus and statement of additional information are
hereby supplemented as follows:
"Contingent deferred sales charges will now be waived on any redemption
consisting of (1) loan proceeds to a retirement plan participant; (2)
financial hardship withdrawals made by a retirement plan participant; or (3)
returns of excess contributions or excess deferral amounts made to a
retirement plan participant."
April 28, 1995
B2-SK
