<PAGE> PAGE 1
000 B000000 09/30/97
000 C000000 000055619
000 D000000 Y
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 KEYSTONE STRATEGIC GROWTH FUND (K-2)
001 B000000 811-97
001 C000000 6173383200
002 A000000 200 BERKELEY STREET
002 B000000 BOSTON
002 C000000 MA
002 D010000 02116
002 D020000 5034
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 KEYSTONE INVESTMENT MANAGEMENT COMPANY
008 B000001 A
008 C000001 801-8327
008 D010001 BOSTON
008 D020001 MA
008 D030001 02116
008 D040001 5034
010 A000001 KEYSTONE INVESTMENT MANAGEMENT CO.
010 C010001 BOSTON
010 C020001 MA
010 C030001 02116
010 C040001 5034
011 A000001 EVERGREEN KEYSTONE DISTRIBUTOR,INC
011 B000001 8-46906
011 C010001 FALLS RIVER
011 C020001 NJ
011 C030001 00000
011 C040001 0000
<PAGE> PAGE 2
012 A000001 EVERGREEN KEYSTONE SERVICE COMPANY
012 B000001 84-1571
012 C010001 BOSTON
012 C020001 MA
012 C030001 02116
013 A000001 KPMG - PEAT MARWICK,LLP
013 B010001 BOSTON
013 B020001 MA
013 B030001 02109
015 A000001 STATE STREET BANK & TRUST
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02110
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 74
019 C000000 KEYGROUPPA
020 A000001 DONALDSON, LUFKIN & JENRETTE
020 B000001 13-2741729
020 C000001 113
020 A000002 MERRILL LYNCH PIERCE FENNER & SMITH
020 B000002 13-5674085
020 C000002 98
020 A000003 SMITH BARNEY
020 B000003 13-1912900
020 C000003 64
020 A000004 PAINE WEBBER, INC.
020 B000004 13-2638166
020 C000004 63
020 A000005 CS FIRST BOSTON
020 B000005 13-5659485
020 C000005 44
020 A000006 NATWEST SECURITIES NEW YORK
020 B000006 13-2671915
020 C000006 43
020 A000007 GOLDMAN SACHS
020 B000007 13-5108880
020 C000007 43
020 A000008 ESI CO SECURITIES
020 B000008 13-6659846
020 C000008 42
020 A000009 KOKUSAI SECURITIES
020 B000009 13-3431243
020 C000009 40
020 A000010 AUTRANET, INC.
020 B000010 13-2961507
020 C000010 35
021 000000 1139
022 A000001 GOLDMAN SACHS
<PAGE> PAGE 3
022 B000001 13-5108880
022 C000001 168333
022 D000001 2858
022 A000002 HSBC SECURITIES
022 C000002 44993
022 D000002 0
022 A000003 PAINE WEBBER, INC.
022 B000003 13-2638166
022 C000003 0
022 D000003 16360
022 A000004 C.J. LAWRENCE\DEUTSCHE BANK
022 B000004 13-2730828
022 C000004 0
022 D000004 11469
022 A000005 MERRILL LYNCH PIERCE FENNER & SMITH
022 B000005 13-5674085
022 C000005 8815
022 D000005 951
022 A000006 ABN AMRO SECURITIES CORP.
022 B000006 13-3227945
022 C000006 7774
022 D000006 0
022 A000007 CANTOR FITZGERALD & CO.
022 B000007 13-3680184
022 C000007 2998
022 D000007 2951
022 A000008 MORGAN STANLEY & CO.
022 B000008 13-2655998
022 C000008 1613
022 D000008 4093
022 A000009 BEAR STEARNS SECURITIES
022 B000009 13-3299429
022 C000009 4952
022 D000009 60
022 A000010 BLAIR, WILLIAM & CO.
022 B000010 36-2214610
022 C000010 4610
022 D000010 0
023 C000000 5280077
023 D000000 54063
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 Y
026 B000000 Y
<PAGE> PAGE 4
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 7933
028 A020000 0
028 A030000 0
028 A040000 24151
028 B010000 4527
028 B020000 0
028 B030000 0
028 B040000 7802
028 C010000 5095
028 C020000 0
028 C030000 0
028 C040000 9125
028 D010000 29130
028 D020000 0
028 D030000 0
028 D040000 13083
028 E010000 3439
028 E020000 0
028 E030000 0
028 E040000 14089
028 F010000 5845
028 F020000 0
028 F030000 0
028 F040000 11264
028 G010000 55969
028 G020000 0
028 G030000 0
028 G040000 79514
028 H000000 55969
029 000000 N
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
<PAGE> PAGE 5
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 100
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 1791
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 100000
048 A020000 0.700
048 B010000 100000
048 B020000 0.650
048 C010000 100000
048 C020000 0.600
048 D010000 100000
048 D020000 0.550
048 E010000 100000
048 E020000 0.500
048 F010000 500000
048 F020000 0.450
048 G010000 500000
048 G020000 0.400
048 H010000 1500000
048 H020000 0.350
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 Y
053 A000000 N
054 A000000 Y
054 B000000 N
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
<PAGE> PAGE 6
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 1000
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 Y
066 E000000 N
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 Y
070 B020000 N
<PAGE> PAGE 7
070 C010000 Y
070 C020000 N
070 D010000 Y
070 D020000 N
070 E010000 Y
070 E020000 N
070 F010000 Y
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 Y
070 H020000 N
070 I010000 Y
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 Y
070 M020000 Y
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
070 R020000 N
071 A000000 468845
071 B000000 500847
071 C000000 592615
071 D000000 79
072 A000000 11
072 B000000 1123
072 C000000 6159
072 D000000 0
072 E000000 0
072 F000000 3206
072 G000000 87
072 H000000 0
072 I000000 1122
072 J000000 219
072 K000000 0
072 L000000 0
072 M000000 57
072 N000000 61
072 O000000 0
<PAGE> PAGE 8
072 P000000 0
072 Q000000 0
072 R000000 33
072 S000000 0
072 T000000 1791
072 U000000 0
072 V000000 0
072 W000000 80
072 X000000 6656
072 Y000000 29
072 Z000000 655
072AA000000 80804
072BB000000 0
072CC010000 105055
072CC020000 0
072DD010000 0
072DD020000 0
072EE000000 59854
073 A010000 0.0000
073 A020000 0.0000
073 B000000 1.0400
073 C000000 0.0000
074 A000000 90
074 B000000 43935
074 C000000 0
074 D000000 0
074 E000000 20542
074 F000000 862496
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 1214
074 K000000 0
074 L000000 581
074 M000000 572
074 N000000 929430
074 O000000 7896
074 P000000 500
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 1053
074 S000000 0
074 T000000 919981
074 U010000 86747
074 U020000 0
074 V010000 10.61
074 V020000 0.00
074 W000000 0.0000
074 X000000 507436
<PAGE> PAGE 9
074 Y000000 0
075 A000000 0
075 B000000 609104
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 P000000 N
077 Q010000 Y
078 000000 N
080 A000000 ICI MUTUAL INSURANCE CO.
080 C000000 35000
081 A000000 Y
081 B000000 71
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE J. KEVIN KENELY
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
</TABLE>
The Trustees and Shareholders
Keystone Strategic Growth Fund (K-2)
In planning and performing our audit of the financial statements of Keystone
Strategic Growth Fund (K-2) for the eleven-month period ended September 30,
1997, we considered its internal control, including procedures for safeguarding
securities, in order to determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and to comply with the
requirements of Form N-SAR, not to provide assurance on internal control.
The management of Keystone Strategic Growth Fund (K-2) is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of controls. Generally, controls that are
relevant to an audit pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in conformity with
generally accepted accounting principles. Those controls include the
safeguarding of assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or irregularities
may occur and not be detected. Also, projection of any evaluation of internal
control 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 internal control would not necessarily disclose all matters
in internal control 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 any
specific internal control component 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 internal control,
including controls over safeguarding securities, that we consider to be material
weaknesses as defined above as of September 30, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
October 31, 1997
