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SIGNATURE JEROME L. DUFFY
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000919708
<NAME> KEMPER STRATEGIC INCOME FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 8-MOS
<FISCAL-YEAR-END> NOV-30-1994
<PERIOD-END> NOV-30-1994
<INVESTMENTS-AT-COST> 64,581
<INVESTMENTS-AT-VALUE> 61,407
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<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 2,929
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (4,152)
<NET-ASSETS> 42,390
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3,842
<OTHER-INCOME> 0
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</TABLE>
SUPPLEMENTARY REPORT OF INDEPENDENT AUDITORS
Board of Trustees
Kemper Funds
In planning and performing our audit of the financial statements of
each of the Kemper Funds listed in Exhibit A attached hereto (the
"Funds") for the year ended November 30, 1994, 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 their financial statements and
to comply with the requirements of Form N-SAR, not to provide
assurance on the internal control structure.
The management of the Funds is responsible for establishing and
maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgements 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 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 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 November 30, 1994.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
ERNST & YOUNG LLP
Chicago, Illinois
January 4, 1995
Kemper Funds Exhibit A
November 30, 1994
Kemper High Income Trust
Kemper Intermediate Government Trust
Kemper Municipal Income Trust
Kemper Mult-Market Income Trust
Kemper Strategic Municipal Income Trust
Growth Fund of Spain
Kemper Strategic Income Fund
KEMPER FINANCIAL SERVICES, INC.
120 S. LaSalle Street, Chicago, IL 60603 312/781-1121
January 26, 1995
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, D.C. 20549
Attn: Filing Desk, Stop 1-4
Re: KEMPER STRATEGIC INCOME FUND
(FILE NOS. 33-75790 AND 811-8382)
Dear Sir or Madam:
Enclosed pursuant to Rule 30b-1 under the Investment Company Act of
1940 is the Form N-SAR for the above-referenced Registrant for the
twelve-month period ended November 30, 1994. A wire in the amount
of $125 for the filing fee has been sent to the Mellon Bank.
Very truly yours,
/s/ Maureen A. Miller
Maureen A. Miller
Associate Counsel
MAM/lkw
Enclosures
