485BPOS 2012-06-30 0001358658 2012-10-30 Keystone Mutual Funds false 2012-10-26 2012-10-30 <tt>The Fund pays transaction costs, such as commissions, when it buys and sells<br />securities (or "turns over") its portfolio. A higher portfolio turnover rate <br />may indicate higher transaction costs and may result in higher taxes when Fund<br />shares are held in a taxable account. These costs, which are not reflected in<br />Annual Fund Operating Expenses or in the Example, affect the Fund's performance. <br />During the most recent fiscal year, the Fund's portfolio turnover rate was 114% <br />of the average value of its portfolio.</tt> <div style="display:none">~ http://www.keystonefunds.com/role/ExpenseExample_S000012725Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display:none">~ http://www.keystonefunds.com/role/BarChartData_S000012725Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <tt>The Keystone Large Cap Growth Fund's (the "Fund") investment objective is<br />long-term growth of capital.</tt> <tt>This Example is intended to help you compare the costs of investing in the <br />Fund with the cost of investing in other mutual funds. The Example assumes <br />that you invest $10,000 in the Fund for the time periods indicated and <br />then redeem all of your shares at the end of those periods. The Example <br />also assumes that your investment has a 5% return each year, that dividends <br />and distributions are reinvested, and that the Fund's operating expenses <br />remain the same.</tt> Index returns do not reflect deductions for fees, expenses, or taxes <tt>The Keystone Large Cap Growth Fund is a diversified, open-end management<br />investment company that invests primarily in equity securities of U.S.<br />companies. Unlike many equity funds, the Fund focuses on a relatively small<br />number of intensively researched companies.<br /> <br />Under normal circumstances, the Fund will invest at least 80% of its net assets<br />in common stocks of large-capitalization companies. For these purposes,<br />"large-capitalization companies" are those that, at the time of investment, have<br />market capitalizations within the range of market capitalizations of companies<br />appearing in the Russell 1000&#xAE; Growth Index (which ranged from $752 million to<br />$624 billion as of September 28, 2012). The Fund generally will invest in common<br />stocks of companies with market capitalizations of at least $3 billion at the<br />time of purchase.<br />&#xA0;&#xA0;<br />Normally, the Fund invests in approximately 35-55 companies that the Fund's<br />Adviser believes have strong management, superior industry positions, excellent<br />balance sheets and superior earnings growth prospects. The 25 most highly<br />regarded of these companies usually constitute approximately 70% or more of the<br />Fund's net assets. Notwithstanding this focus, the Fund has no policy to<br />concentrate in securities of issuers in a particular industry or group of<br />industries. Because the Adviser's approach focuses on individual stock<br />selection, the Adviser believes that any resulting industry and sector<br />concentrations are byproducts of this investment selection process. As an<br />operating policy, however, the Adviser does not intend for investments in any<br />one particular industry or group of industries to exceed 50% of the Fund's net<br />assets. Although the Fund does not concentrate its investments in any one<br />industry, a large portion of its assets has historically been in technology<br />companies which the Adviser believes have offered exceptional growth potential.<br /> <br />During market declines, while adding to positions in favored stocks, the Fund<br />becomes somewhat more aggressive, gradually reducing the number of companies<br />represented in its portfolio. Conversely, in rising markets, while reducing or<br />eliminating fully valued positions, the Fund becomes somewhat more conservative,<br />gradually increasing the number of companies represented in its portfolio. <br />Through this process, the Adviser tends to add to positions on price weakness <br />and sell into price strength, all else being equal and assuming long-term <br />company fundamentals are intact. Risk is therefore increased during periods of <br />weakness and reduced during periods of strength. The Adviser uses this active <br />management strategy to attempt to add incremental performance while seeking to <br />mitigate risk by utilizing a buy low, sell high discipline.<br /> <br />In pursuing its objective, the Fund may also purchase the stocks of non-U.S.<br />companies whose shares trade in U.S. markets or on U.S. exchanges.<br /> <br />You should consider an investment in the Fund as a long-term investment. The<br />Fund's returns will fluctuate over long and short periods.</tt> FUND SUMMARY Example After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Investment Objective As with all mutual funds, the past performance is not a prediction of the future returns. There is no assurance the Fund will achieve its investment objective and the loss of your money is a risk of investing in the Fund. Principal Risks Shareholder Fees (fees paid directly from your investment) Although your actual costs may be higher or lower, based on these assumptions your costs would be: After-tax returns are shown for Class A shares only and will vary for Class I. 1.14 Year-by-Year Total Returns as of 12/31 for each Year Indicated Class A Fund Performance <tt>After-tax returns are calculated using the historical highest individual federal<br />marginal income tax rates and do not reflect the impact of state and local taxes. <br />The actual after-tax returns depend on your tax situation and may differ from <br />those shown. If you hold your shares through a tax-deferred arrangement, such as <br />an IRA or 401(k) plan, the after-tax returns shown are not relevant to you. <br />After-tax returns are shown for Class A shares only and will vary for Class I.</tt> The bar chart shows the variability of the annual returns for the Class A shares of the Fund for the period ended December 31, and provides an indication of the risks of investing in the Fund by showing changes in the performance of the Fund's shares from year to year. <tt>The returns for the period January 1, 2012 through September 30, 2012 are 17.07%. <br />The performance of Class I shares will differ due to the differences in expenses. <br /><br />Best Calendar Quarter:&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Q3 2010&#xA0;&#xA0;&#xA0;18.72% <br />Worst Calendar Quarter:&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Q4 2008&#xA0;&#xA0;-20.96%</tt> 1-866-596-FUND Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Average Annual Total Returns (for the periods ended December 31, 2011) Portfolio Turnover <tt>The Fund is designed for investors seeking capital appreciation in their<br />investment over the long term. Those investors should be willing to assume the<br />risks of share price fluctuations that are typical for a fund focusing on stock<br />investments. The Fund is not a complete investment program. There is no<br />assurance the Fund will achieve its investment objective and the loss of your<br />money is a risk of investing in the Fund.<br /> <br />Market Risk. This is the risk that the value of the Fund's investments will<br />fluctuate as the stock or bond markets fluctuate and that prices overall will<br />decline over short- or long-term periods.<br /> <br />Focused Growth Portfolio Risk. Because the Fund invests in a limited number of<br />companies, it may have more risk because changes in the value of a single<br />security may have a more significant effect, either negative or positive, on the<br />Fund's net asset value. Neither growth investing nor active trading can guarantee <br />a profit or eliminate risk. The stocks of these companies can have relatively <br />high valuations. Because of these high valuations, an investment in a growth <br />stock can be more risky than an investment in a company with more modest growth <br />expectations.<br /> <br />Management Risk. The Fund is subject to management risk because it is an actively <br />managed investment portfolio. The Adviser will apply its investment techniques <br />and risk analyses in making investment decisions for the Fund, but there is no <br />guarantee that its decisions will produce the intended result, and there can be <br />no assurance that the Fund's investment objective will be achieved. Active <br />management typically results in a higher portfolio turnover and therefore may <br />cause the realization of net short-term capital gain.<br /><br />Allocation Risk. This is the risk that the allocation of the Fund's investments<br />among economic sectors may have a more significant effect on the Fund's net<br />asset value when one of these sectors is performing more poorly than the others.<br /> <br />Industry Risk. This is the risk of investments related to any one industry.<br />Market or economic factors affecting that industry or group of related<br />industries could have a major effect on the value of the Fund's investments.<br /> <br />Technology Companies Risk. The Fund may focus its investments in technology<br />companies. Technology companies are subject to risks such as those relating to<br />the potential rapid obsolescence of technology, failure of the market to accept<br />new technologies and difficulty obtaining financing for necessary research and<br />development or expansion.<br /> <br />Credit Risk. This is the risk that the issuer of a security or the other party<br />to an over-the-counter transaction will be unable or unwilling to make timely<br />payments of interest or principal, or to otherwise honor its obligations. The<br />degree of risk for a particular security may be reflected in its credit rating.<br /> <br />Foreign Risk. This is the risk of investments in issuers located in foreign<br />countries. A fund investing in the securities of foreign issuers may experience<br />more rapid and extreme changes in value than funds with investments solely in<br />securities of U.S. companies. This is because the securities markets of many<br />foreign countries are relatively small, with a limited number of companies<br />representing a small number of industries. Additionally, foreign securities<br />issuers may not be subject to the same degree of regulation as U.S. issuers. <br />Reporting, accounting, and auditing standards of foreign countries differ, in <br />some cases significantly, from U.S. standards. Also, nationalization,<br />expropriation or confiscatory taxation, currency blockage, or political changes<br />or diplomatic developments could adversely affect the Fund's investments in a<br />foreign country. In the event of nationalization, expropriation, or other<br />confiscation, the Fund could lose its entire investment.</tt> Fees and Expenses of the Fund The actual after-tax returns depend on your tax situation and may differ from those shown. If you hold your shares through a tax-deferred arrangement, such as an IRA or 401(k) plan, the after-tax returns shown are not relevant to you. Principal Investment Strategies <tt>The bar chart shows the variability of the annual returns for the Class A shares<br />of the Fund for the period ended December 31, and provides an indication of the<br />risks of investing in the Fund by showing changes in the performance of the<br />Fund's shares from year to year. The returns shown in the bar chart do not<br />reflect the front-end sales load that was in effect for Class A shares prior to<br />March 1, 2010, when the front end sales load was eliminated. The table shows how<br />the average annual returns of the Class A shares of the Fund for 1 year, 5 years<br />and since inception compare with those of broad measures of market performance. <br />As with all mutual funds, the past performance is not a prediction of the future <br />returns. Updated performance information is available on the Fund's website or <br />by calling 1-866-596-FUND.</tt> <tt>The following table describes the fees and expenses you may pay if you buy and<br />hold shares of the Fund.</tt> <div style="display:none">~ http://www.keystonefunds.com/role/OperatingExpensesData_S000012725Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display:none">~ http://www.keystonefunds.com/role/PerformanceTableData_S000012725Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * column rr_PerformanceMeasureAxis compact * row primary compact * ~</div> <div style="display:none">~ http://www.keystonefunds.com/role/ShareholderFeesData_S000012725Member column dei_LegalEntityAxis compact * column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> Russell 1000® Growth Index (Index returns do not reflect deductions for fees, expenses, or taxes) 0.0264 0.0250 0.0457 0.1296 S&P 500® Index (Index returns do not reflect deductions for fees, expenses, or taxes) 0.0211 -0.0025 0.0190 0.1134 Class A Return After Taxes on Distributions and Sale of Fund Shares 0.0062 0.0125 0.0313 2006-08-07 Class A Return After Taxes on Distributions -0.0127 0.0111 0.0328 2006-08-07 KLGIX 0.00 Class I Return Before Taxes 112 350 1340 0.00 606 -0.0025 0.0040 0.0070 0.0000 0.0110 0.00 0.1100 2009-11-02 KLGAX Worst Calendar Quarter: Best Calendar Quarter: 0.00 2012-09-30 Class A Return Before Taxes 137 2010-09-30 428 -0.2096 0.1594 1624 0.00 739 0.1610 0.1872 -0.0050 0.0040 -0.4321 0.0070 2008-12-31 0.4380 0.0181 The returns for the period January 1, 2012 through September 30, 2012 -0.0050 0.0025 0.0135 0.0399 2006-08-07 0.1707 0.00 0001358658 ck0001358658:SummaryS000012725Memberck0001358658:S000012725Memberck0001358658:C000034271Member 2012-10-30 2012-10-30 0001358658 ck0001358658:SummaryS000012725Memberck0001358658:S000012725Memberck0001358658:C000082494Member 2012-10-30 2012-10-30 0001358658 ck0001358658:SummaryS000012725Memberck0001358658:S000012725Memberrr:AfterTaxesOnDistributionsMemberck0001358658:C000034271Member 2012-10-30 2012-10-30 0001358658 ck0001358658:SummaryS000012725Memberck0001358658:S000012725Memberrr:AfterTaxesOnDistributionsAndSalesMemberck0001358658:C000034271Member 2012-10-30 2012-10-30 0001358658 ck0001358658:SummaryS000012725Memberck0001358658:S000012725Memberck0001358658:RRINDEX00001Member 2012-10-30 2012-10-30 0001358658 ck0001358658:SummaryS000012725Memberck0001358658:S000012725Memberck0001358658:RRINDEX00002Member 2012-10-30 2012-10-30 0001358658 ck0001358658:SummaryS000012725Memberck0001358658:S000012725Member 2012-10-30 2012-10-30 0001358658 2012-10-30 2012-10-30 pure iso4217:USD The inception dates for the Class A and Class I shares are August 7, 2006 and November 2, 2009, respectively.