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SIGNATURE J. KEVIN KENELY
TITLE VP FUND ADMIN.
<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 INSTITUTIONAL ADJUSTABLE RATE FUND CLASS A
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> FEB-28-1998
<PERIOD-START> MAR-01-1997
<PERIOD-END> FEB-28-1998
<INVESTMENTS-AT-COST> 36,405,035
<INVESTMENTS-AT-VALUE> 36,491,151
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<NET-INVESTMENT-INCOME> 2,152,563
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<NET-CHANGE-FROM-OPS> 2,315,578
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<DISTRIBUTIONS-OF-INCOME> (2,543,452)
<DISTRIBUTIONS-OF-GAINS> 0
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<SHARES-REINVESTED> 254,776
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<AVERAGE-NET-ASSETS> 38,735,105
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<PER-SHARE-NII> 0.64
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
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<SERIES>
<NUMBER> 102
<NAME> KEYSTONE INSTITUTIONAL ADJUSTABLE RATE FUND CLASS B
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<PERIOD-START> MAR-01-1997
<PERIOD-END> FEB-28-1998
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<INVESTMENTS-AT-VALUE> 36,491,151
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<SHARES-COMMON-PRIOR> 863,982
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<DISTRIBUTIONS-OF-GAINS> 0
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</TABLE>
19
INDEPENDENT AUDITORS' REPORT
The Trustees and Shareholders
Evergreen Select Adjustable Rate Fund
We have audited the accompanying statement of assets and liabilities of
Evergreen Select Adjustable Rate Fund, including the schedule of investments, as
of February 28, 1998, and the related statement of operations for the year then
ended, the statements of changes in net assets for the year then ended, the five
months ended February 28, 1997 and the year ended September 30, 1996, and the
financial highlights for the year ended February 28, 1998, the five months ended
February 28, 1997 and each of the years in the five-year period ended September
30, 1996 for Institutional Shares and for the year ended February 28, 1998, the
five months ended February 28, 1997, each of the years in the two-year period
ended September 30, 1996 and the period from May 23, 1994 (date of initial
public offering) to September 30, 1994 for Institutional Service Shares. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
February 28, 1998 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Evergreen Select Adjustable Rate Fund as of February 28, 1998, the results of
its operations for the year then ended, the changes in its net assets for the
year then ended, the five months ended February 28, 1997and the year ended
September 30, 1996, and the financial highlights for each of the years or
periods specified in the first paragraph above in conformity with generally
accepted accounting principles.
KPMG Peat Marwick
LLP
Boston, Massachusetts
March 31, 1998
