SUPPLEMENT TO THE PROSPECTUSES AND STATEMENTS
OF ADDITIONAL INFORMATION OF
KEYSTONE AMERICA CAPITAL KEYSTONE AMERICA INTERMEDIATE TERM BOND FUND
PRESERVATION AND INCOME FUND KEYSTONE AMERICA STATE TAX FREE FUND
KEYSTONE AMERICA GOVERNMENT KEYSTONE AMERICA STATE TAX FREE FUND --
SECURITIES FUND SERIES II
(THE "FUND(S)")
The prospectus and statement of additional information of each Fund is
hereby supplemented as follows:
Effective April 10, 1995, purchases of the Fund's Class A shares in the
amount of $1 million or more and/or purchases of Class A shares made by a
corporate qualified retirement plan or a non-qualified deferred compensation
plan having 100 eligible employees or more (a "Qualifying Plan") will be at net
asset value ("NAV") without the imposition of a front-end sales charge.
Starting April 10, 1995, for purchases of the Fund's Class A shares in the
amount of $1 million or more, Keystone Distributors, Inc. will pay broker/
dealers or others concessions in accordance with the following schedule:
CONCESSIONS TO DEALERS
AS A PERCENTAGE OF
PUBLIC OFFERING PRICE AMOUNT OF PURCHASE
0.50% of the investment amount ................... $1,000,000 - $4,999,999 plus
0.25% of amounts equal to or over................ $5,000,000
Effective April 10, 1995, purchases of the Fund's Class A shares in the
amount of $1,000,000 or more or purchases made by a Qualifying Plan as described
above on which no sales charge has been paid by the investor will be subject to
a contingent deferred sales charge ("CDSC") of 0.50% upon redemption during the
24 month period commencing on the date the shares were originally purchased.
Moreover, CDSC will now be waived under the following additional
circumstances:
For the Fund's Class A, B, and C shares, no CDSC will be imposed 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.
With respect to Class A shares purchased by a Qualifying Plan at NAV or
Class C shares purchased by a Qualifying Plan, no CDSC will be imposed on any
redemptions made specifically by an individual participant in the Qualifying
Plan. This waiver is not available in the event a Qualifying Plan as a whole
redeems substantially all of its assets.
April 10, 1995
AMER5-SK
