KEYSTONE CAPITAL PRESERVATION & INCOME FUND
497, 1997-06-02
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                          SUPPLEMENT TO THE PROSPECTUS
                                       of
                  Keystone Capital Preservation and Income Fund
                                  (the "Fund")

         The section of the prospectus  entitled "Portfolio Manager" under "Fund
Management and Expenses" is hereby supplemented to reflect the following:

         Gary E.  Pzegeo,  Vice  President  of  Keystone  Investment  Management
Company, became portfolio manager of the Fund in April 1997. Mr. Pzegeo has been
an investment professional at Keystone Investment Management Company since 1990.


June 2, 1997




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