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<PAGE> PAGE 2
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<PAGE> PAGE 3
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<PAGE> PAGE 4
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SIGNATURE J. KEVIN KENELY
TITLE V.P. 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> 104
<NAME> KEYSTONE STRATEGIC INCOME FUND CLASS Y
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1996
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 192,568,506
<INVESTMENTS-AT-VALUE> 186,554,866
<RECEIVABLES> 8,965,284
<ASSETS-OTHER> 129,756
<OTHER-ITEMS-ASSETS> 45,670
<TOTAL-ASSETS> 195,695,576
<PAYABLE-FOR-SECURITIES> 1,118,125
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,467,100
<TOTAL-LIABILITIES> 2,585,225
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7
<SHARES-COMMON-STOCK> 1
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 7
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 0
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 7
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 7.03
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> (0.20)
<PER-SHARE-DIVIDEND> (0.18)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 6.65
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<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> 103
<NAME> KEYSTONE STRATEGIC INCOME FUND CLASS C
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1996
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 192,568,506
<INVESTMENTS-AT-VALUE> 186,554,866
<RECEIVABLES> 8,965,284
<ASSETS-OTHER> 129,756
<OTHER-ITEMS-ASSETS> 45,670
<TOTAL-ASSETS> 195,695,576
<PAYABLE-FOR-SECURITIES> 1,118,125
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,467,100
<TOTAL-LIABILITIES> 2,585,225
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 32,210,864
<SHARES-COMMON-STOCK> 3,552,632
<SHARES-COMMON-PRIOR> 4,680,973
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (72,652)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (6,546,089)
<ACCUM-APPREC-OR-DEPREC> (1,288,485)
<NET-ASSETS> 24,303,638
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,840,815
<OTHER-INCOME> 3,215
<EXPENSES-NET> (436,932)
<NET-INVESTMENT-INCOME> 1,407,098
<REALIZED-GAINS-CURRENT> 728,946
<APPREC-INCREASE-CURRENT> (275,710)
<NET-CHANGE-FROM-OPS> 1,860,334
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,508,377)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 413,449
<NUMBER-OF-SHARES-REDEEMED> (1,679,415)
<SHARES-REINVESTED> 137,625
<NET-CHANGE-IN-ASSETS> (7,512,063)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (159,478)
<OVERDIST-NET-GAINS-PRIOR> (7,193,730)
<GROSS-ADVISORY-FEES> (138,379)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (436,932)
<AVERAGE-NET-ASSETS> 28,836,828
<PER-SHARE-NAV-BEGIN> 6.8
<PER-SHARE-NII> 0.33
<PER-SHARE-GAIN-APPREC> 0.08
<PER-SHARE-DIVIDEND> (0.37)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 6.84
<EXPENSE-RATIO> 2.04
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<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> 102
<NAME> KEYSTONE STRATEGIC INCOME FUND CLASS B
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1996
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 192,568,506
<INVESTMENTS-AT-VALUE> 186,554,866
<RECEIVABLES> 8,965,284
<ASSETS-OTHER> 129,756
<OTHER-ITEMS-ASSETS> 45,670
<TOTAL-ASSETS> 195,695,576
<PAYABLE-FOR-SECURITIES> 1,118,125
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,467,100
<TOTAL-LIABILITIES> 2,585,225
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 132,668,762
<SHARES-COMMON-STOCK> 16,071,930
<SHARES-COMMON-PRIOR> 18,132,004
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (28,058)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (19,186,516)
<ACCUM-APPREC-OR-DEPREC> (3,372,557)
<NET-ASSETS> 110,081,631
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 7,563,921
<OTHER-INCOME> 13,217
<EXPENSES-NET> (1,794,701)
<NET-INVESTMENT-INCOME> 5,782,437
<REALIZED-GAINS-CURRENT> 3,074,228
<APPREC-INCREASE-CURRENT> (1,559,434)
<NET-CHANGE-FROM-OPS> 7,297,231
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (6,238,801)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,590,485
<NUMBER-OF-SHARES-REDEEMED> (5,099,176)
<SHARES-REINVESTED> 448,617
<NET-CHANGE-IN-ASSETS> (13,307,058)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (345,120)
<OVERDIST-NET-GAINS-PRIOR> (21,926,446)
<GROSS-ADVISORY-FEES> (569,310)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (1,794,701)
<AVERAGE-NET-ASSETS> 118,566,303
<PER-SHARE-NAV-BEGIN> 6.81
<PER-SHARE-NII> 0.34
<PER-SHARE-GAIN-APPREC> 0.07
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 7.22
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<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 STRATEGIC INCOME FUND CLASS A
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1996
<PERIOD-END> MAR-31-1996
<INVESTMENTS-AT-COST> 192,568,506
<INVESTMENTS-AT-VALUE> 186,554,866
<RECEIVABLES> 8,965,284
<ASSETS-OTHER> 129,756
<OTHER-ITEMS-ASSETS> 45,670
<TOTAL-ASSETS> 195,695,576
<PAYABLE-FOR-SECURITIES> 1,118,125
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1,467,100
<TOTAL-LIABILITIES> 2,585,225
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 99,692,701
<SHARES-COMMON-STOCK> 8,613,751
<SHARES-COMMON-PRIOR> 10,060,162
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (475,688)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (39,103,173)
<ACCUM-APPREC-OR-DEPREC> (1,388,765)
<NET-ASSETS> 58,725,075
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,110,854
<OTHER-INCOME> 7,043
<EXPENSES-NET> (607,267)
<NET-INVESTMENT-INCOME> 3,510,630
<REALIZED-GAINS-CURRENT> 1,659,103
<APPREC-INCREASE-CURRENT> (863,411)
<NET-CHANGE-FROM-OPS> 4,306,322
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,741,251)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 722,925
<NUMBER-OF-SHARES-REDEEMED> (2,450,268)
<SHARES-REINVESTED> 280,932
<NET-CHANGE-IN-ASSETS> (9,393,297)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (665,398)
<OVERDIST-NET-GAINS-PRIOR> (40,580,597)
<GROSS-ADVISORY-FEES> (309,393)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (607,267)
<AVERAGE-NET-ASSETS> 64,437,064
<PER-SHARE-NAV-BEGIN> 6.77
<PER-SHARE-NII> 0.37
<PER-SHARE-GAIN-APPREC> 0.09
<PER-SHARE-DIVIDEND> (0.41)
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 6.82
<EXPENSE-RATIO> 1.28
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
The Trustees and Shareholders
Keystone Strategic Income Fund
Evergreen Investment Trust
In planning and performing our audit of the financial statements of Keystone
Strategic Income Fund for the period from August 1, 1996 through April 30, 1997
and Evergreen U.S. Government Fund (one of the portfolios constituting Evergreen
Investment Trust) for the period from July 1, 1996 through April 30, 1997, we
considered their internal control structure, 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 the internal control
structure.
The management of Keystone Strategic Income Fund and Evergreen Investment Trust
is responsible for establishing and maintaining an internal control structure.
In fulfilling this responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of internal control
structure policies and procedures. Two of the objectives of an internal control
structure are to provide management with reasonable, but not absolute, assurance
that assets are safeguarded against loss from unauthorized use or disposition
and that transactions are executed in accordance with management's authorization
and recorded properly to permit preparation of financial statements in
conformity with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risks that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure 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 the specific internal control structure elements 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 the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
April 30, 1997.
This report is intended solely for the information and use of management and the
Securities and Exchange Commission.
KPMG Peat Marwick LLP
Boston, Massachusetts
May 30, 1997
