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001 A000000 KEYSTONE OMEGA FUND
001 B000000 811-1600
001 C000000 6173383200
002 A000000 200 BERKELEY STREET
002 B000000 BOSTON
002 C000000 MA
002 D010000 02116
003 000000 N
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020 A000001 MERRILL LYNCH PIERCE FENNER & SMITH
020 B000001 13-5674085
020 C000001 76
020 A000002 NEWBRIDGE SECURITIES
020 B000002 13-3214963
020 C000002 72
020 A000003 EXECUTION SERVICES, INC.
020 C000003 59
020 A000004 PAINE WEBBER, INC.
020 B000004 13-2630166
020 C000004 46
020 A000005 SMITH BARNEY, INC.
020 C000005 43
020 A000006 DONALDSON, LOFKIN, JENRETTE
020 C000006 42
020 A000007 PRUDENTIAL SECURITIES
020 C000007 32
020 A000008 BEAR, STEARNS SECURITIES CORP.
020 B000008 13-3299429
<PAGE> PAGE 2
020 C000008 28
020 A000009 NATWEST SECURITIES CORP
020 C000009 26
020 A000010 BANK OF TOKYO TRUST CO.
020 C000010 24
021 000000 735
022 A000001 KEYSTONE JOINT REPO
022 B000001 22-2347336
022 C000001 2452340
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022 A000003 GOLDMAN SACHS
022 C000003 61903
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022 A000004 SANWA BANK
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022 C000005 42359
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022 B000006 13-1912900
022 C000006 32836
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022 C000007 12498
022 D000007 6370
022 A000008 MORGAN STANLEY AND CO.,INC.
022 C000008 8400
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022 A000009 DIRECT ISSUE& SON INC.
022 C000009 11404
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022 A000010 HSBC SECURITIES INC.
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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SIGNATURE KEVIN J. MORRISSEY
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 OMEGA FUND CLASS A
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 181,314,514
<INVESTMENTS-AT-VALUE> 219,696,775
<RECEIVABLES> 2,191,172
<ASSETS-OTHER> 61,369
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 221,949,316
<PAYABLE-FOR-SECURITIES> 1,215,722
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 55,204
<TOTAL-LIABILITIES> 1,270,926
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 100,796,019
<SHARES-COMMON-STOCK> 6,907,644
<SHARES-COMMON-PRIOR> 6,408,219
<ACCUMULATED-NII-CURRENT> 542,324
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 5,156,927
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 28,583,722
<NET-ASSETS> 135,078,994
<DIVIDEND-INCOME> 1,062,271
<INTEREST-INCOME> 463,720
<OTHER-INCOME> 0
<EXPENSES-NET> (1,523,253)
<NET-INVESTMENT-INCOME> 2,738
<REALIZED-GAINS-CURRENT> 15,747,254
<APPREC-INCREASE-CURRENT> 19,551,362
<NET-CHANGE-FROM-OPS> 35,301,354
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (9,531,332)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,178,460
<NUMBER-OF-SHARES-REDEEMED> (1,161,391)
<SHARES-REINVESTED> 482,356
<NET-CHANGE-IN-ASSETS> 35,509,966
<ACCUMULATED-NII-PRIOR> 194,824
<ACCUMULATED-GAINS-PRIOR> 362,616
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 834,750
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (1,538,084)
<AVERAGE-NET-ASSETS> 111,062,404
<PER-SHARE-NAV-BEGIN> 15.54
<PER-SHARE-NII> 0.00
<PER-SHARE-GAIN-APPREC> 5.58
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (1.56)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 19.56
<EXPENSE-RATIO> 1.38
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<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> 102
<NAME> KEYSTONE OMEGA FUND CLASS B
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 181,314,514
<INVESTMENTS-AT-VALUE> 219,696,775
<RECEIVABLES> 2,191,172
<ASSETS-OTHER> 61,369
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 221,949,316
<PAYABLE-FOR-SECURITIES> 1,215,722
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 55,204
<TOTAL-LIABILITIES> 1,270,926
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 64,319,412
<SHARES-COMMON-STOCK> 3,751,051
<SHARES-COMMON-PRIOR> 2,103,471
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (426,381)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (398,006)
<ACCUM-APPREC-OR-DEPREC> 8,140,974
<NET-ASSETS> 71,635,998
<DIVIDEND-INCOME> 455,549
<INTEREST-INCOME> 183,782
<OTHER-INCOME> 0
<EXPENSES-NET> (1,087,783)
<NET-INVESTMENT-INCOME> (448,452)
<REALIZED-GAINS-CURRENT> 6,676,368
<APPREC-INCREASE-CURRENT> 8,605,422
<NET-CHANGE-FROM-OPS> 14,833,338
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (4,676,811)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,902,255
<NUMBER-OF-SHARES-REDEEMED> (499,966)
<SHARES-REINVESTED> 245,291
<NET-CHANGE-IN-ASSETS> 39,370,225
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (143,236)
<OVERDIST-NET-GAINS-PRIOR> (1,768,276)
<GROSS-ADVISORY-FEES> 360,435
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (1,094,174)
<AVERAGE-NET-ASSETS> 47,860,093
<PER-SHARE-NAV-BEGIN> 15.34
<PER-SHARE-NII> (0.09)
<PER-SHARE-GAIN-APPREC> 5.41
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (1.56)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 19.10
<EXPENSE-RATIO> 2.29
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<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> 103
<NAME> KEYSTONE OMEGA FUND CLASS C
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 181,314,514
<INVESTMENTS-AT-VALUE> 219,696,775
<RECEIVABLES> 2,191,172
<ASSETS-OTHER> 61,369
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 221,949,316
<PAYABLE-FOR-SECURITIES> 1,215,722
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 55,204
<TOTAL-LIABILITIES> 1,270,926
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 12,555,096
<SHARES-COMMON-STOCK> 730,073
<SHARES-COMMON-PRIOR> 644,331
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (115,943)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (133,320)
<ACCUM-APPREC-OR-DEPREC> 1,657,565
<NET-ASSETS> 13,963,398
<DIVIDEND-INCOME> 108,517
<INTEREST-INCOME> 47,843
<OTHER-INCOME> 0
<EXPENSES-NET> (259,508)
<NET-INVESTMENT-INCOME> (103,148)
<REALIZED-GAINS-CURRENT> 1,597,219
<APPREC-INCREASE-CURRENT> 1,977,994
<NET-CHANGE-FROM-OPS> 3,472,065
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (973,850)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 273,387
<NUMBER-OF-SHARES-REDEEMED> (240,110)
<SHARES-REINVESTED> 52,465
<NET-CHANGE-IN-ASSETS> 4,063,003
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (51,588)
<OVERDIST-NET-GAINS-PRIOR> (607,987)
<GROSS-ADVISORY-FEES> 85,251
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (261,021)
<AVERAGE-NET-ASSETS> 11,335,860
<PER-SHARE-NAV-BEGIN> 15.37
<PER-SHARE-NII> (0.13)
<PER-SHARE-GAIN-APPREC> 5.45
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (1.56)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 19.13
<EXPENSE-RATIO> 2.30
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Trustees and Shareholders
Keystone Omega Fund
In planning and performing our audit of the financial statements of Keystone
Omega Fund for the year ended December 31, 1995, 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 Omega 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
December 31, 1995.
This report in intended solely for the information and use of management and the
Securities and Exchange Commission.
KPMG Peat Marwick LLP
Boston, Massachusetts
January 23, 1996
