<PAGE>
SUPPLEMENT TO THE PROSPECTUS
AND
STATEMENT OF ADDITIONAL INFORMATION
OF
KEYSTONE GLOBAL RESOURCES AND DEVELOPMENT FUND
(THE "FUND")
The prospectus and statement of additional information of the Fund are hereby
supplemented as follows:
On December 11, 1996, Keystone Investments, Inc. ("Keystone Investments"), and
indirectly each of its subsidiaries, including Keystone Investment Management
Company ("Keystone"), the Fund's investment adviser, were acquired (the
"Acquisition") by First Union National Bank of North Carolina ("FUNB"), a
wholly-owned subsidiary of First Union Corporation ("First Union"). Keystone
Investments was acquired by FUNB by merger into a wholly-owned subsidiary of
FUNB, which entity then assumed the name "Keystone Investments, Inc." and
succeeded to the business of Keystone Investments. Contemporaneously with the
Acquisition, the Fund entered into a new principal underwriting agreement with
Evergreen Keystone Distributor, Inc. (formerly Evergreen Funds Distributor,
Inc.) ("EKD"), a wholly-owned subsidiary of Furman Selz LLC ("Furman Selz"). In
connection with the Acquisition, a meeting of shareholders of the Fund was
scheduled for December 9, 1996 to approve new advisory and sub-advisory
agreements with Keystone, the Fund's investment adviser, and Equitilink
International Management Limited, the Fund's sub-adviser, respectively. Because
a quorum was not present at the meeting on December 9, 1996, the new agreements
were not approved and the meeting was adjourned to January 15, 1997. Until such
time as new agreements are approved, Keystone has agreed to continue to provide
investment advisory services to the Fund at cost. If new agreements are not
approved, the Board of Trustees of the Fund will consider what action should be
taken.
EKD, which is not affiliated with First Union, is now the Fund's principal
underwriter (the "Principal Underwriter"). EKD replaces Evergreen Keystone
Investment Services, Inc. (formerly Keystone Investment Distributors Company)
("EKIS") as the Fund's principal underwriter. EKIS may no longer act as
principal underwriter of the Fund due to regulatory restrictions imposed by the
Glass-Steagall Act upon national banks, such as FUNB and their affiliates, that
prohibit such entities from acting as the underwriters of mutual fund shares.
While EKIS may no longer act as principal underwriter of the Fund as discussed
above, EKIS may continue to receive compensation from the Fund or the Principal
Underwriter in respect of underwriting and distribution services performed prior
to the termination of EKIS as principal underwriter. In addition, EKIS may also
be compensated by the Principal Underwriter for the provision of certain
marketing support services to the Principal Underwriter at an annual rate of up
to .75% of the average daily net assets of the Fund, subject to certain
restrictions.
Furman Selz will provide personnel to serve as officers of the Fund, and
certain administrative services to the Fund pursuant to a sub-administration
agreement under which it will receive from Keystone an annual fee at the maximum
annual rate of .01% of the average daily net assets of the Fund. Both EKD and
Furman Selz are located at 230 Park Avenue, New York, New York 10169.
It is expected that on or about January 2, 1997, Furman Selz will transfer
EKD, and its related mutual fund distribution and administration business, to
BISYS Group, Inc. ("BISYS"). At that time, BISYS will succeed as sub-
administrator to the Fund. It is not expected that the acquisition of the mutual
fund distribution and administration business by BISYS will affect the services
currently provided by EKD or Furman Selz.
CERTAIN OTHER CHANGES
In connection with the Acquisition described above, the following changes have
also occurred or will occur with respect to the Fund:
o The name of Keystone Investor Resource Center, Inc., the Fund's transfer and
dividend disbursing agent, has been changed to Evergreen Keystone Service
Company. It is not expected that the Acquisition or the change of name will
have any effect on the services provided.
o Effective January 1, 1997, the sales loads, contingent deferred sales
charges, and certain other characteristics of the Fund's Class A, B, and C
shares will be modified as described below:
WITH RESPECT TO CLASS A SHARES:
o Effective January 1, 1997, Class A shares will be offered at the public
offering price, which is equal to net asset value plus an initial sales
charge as follows:
<TABLE>
<CAPTION>
AS A % OF CONCESSION TO
AS A % OF NET AMOUNT DEALERS AS A % OF
AMOUNT OF PURCHASE OFFERING PRICE INVESTED* OFFERING PRICE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than $50,000 ................................. 4.75% 4.99% 4.25%
$50,000 but less than $100,000 .................... 4.50% 4.71% 4.25%
$100,000 but less than $250,000 ................... 3.75% 3.90% 3.25%
$250,000 but less than $500,000 ................... 2.50% 2.56% 2.00%
$500,000 but less than $1,000,000 ................. 2.00% 2.04% 1.75%
----------
*Rounded to the nearest one-hundredth percent.
</TABLE>
o Purchases of the Fund's Class A shares made after January 1, 1997 (i) in
the amount of $1 million or more; (ii) by a corporate or certain other
qualified retirement plan or a non-qualified deferred compensation plan or
a Title I tax sheltered annuity or TSA plan sponsored by an organization
having 100 or more eligible employees (a "Qualifying Plan") or a TSA plan
sponsored by a public educational entity having 5,000 or more eligible
employees (an "Educational TSA Plan"); or (iii) by (a) institutional
investors, which may include bank trust departments and registered
investment advisers; (b) investment advisers, consultants or financial
planners who place trades for their own accounts or the accounts of their
clients and who charge such clients a management, consulting, advisory or
other fee; (c) clients of investment advisers or financial planners who
place trades for their own accounts if the accounts are linked to the
master account of such investment advisers or financial planners on the
books of the broker-dealer through whom shares are purchased; (d)
institutional clients of broker-dealers, including retirement and deferred
compensation plans and the trusts used to fund these plans, which place
trades through an omnibus account maintained with the Fund by the
broker-dealer; and (e) employees of FUNB and its affiliates, EKD and any
broker-dealer with whom EKD has entered into an agreement to sell shares
of the Fund, and members of the immediate families of such employees, will
be at net asset value without the imposition of a front-end sales charge.
Certain broker-dealers or other financial institutions may impose a fee on
transactions in shares of the Funds.
o With respect to purchases of the Fund's Class A shares made after January
1, 1997, in the amount of $1 million or more, the Principal Underwriter
will pay broker-dealers or others concessions at the following rate: 1.00%
of the investment amount up to $2,999,999; plus 0.50% of the investment
amount between $3,000,000 and $4,999,999; plus 0.25% of the investment
amount over $4,999,999.
o With respect to purchases of the Fund's Class A shares made after January
1, 1997, by Qualifying Plans and Educational TSA Plans, the Principal
Underwriter will pay broker-dealers and other concessions at the rate of
0.50% of the net asset value of the shares purchased. These payments are
subject to reclaim in the event the shares are redeemed within twelve
months after purchase.
o Purchases of the Fund's Class A shares made after January 1, 1997, in the
amount of $1 million or more, are subject to a contingent deferred sales
charge ("CDSC") of 1.00% upon redemption during the month of purchase and
the 12-month period following the month of purchase.
o Upon prior notification to the Principal Underwriter, Class A shares may
be purchased at net asset value by clients of registered representatives
within 30 days after (i) a change in the registered representative's
employment or (ii) the redemption of shares of any registered open-end
investment company not distributed or managed by Keystone or its
affiliates, when the amount invested represents redemption proceeds from a
registered open-end management investment company not distributed or
managed by Keystone or its affiliates and the shareholder either (1) paid
a front-end sales charge, or (2) was at some time subject to, but did not
actually pay, a CDSC with respect to the redemption proceeds. These
special net asset value purchases may be modified or terminated in the
future.
WITH RESPECT TO CLASS B SHARES:
o Class B shares purchased after January 1, 1997 are subject to a CDSC if
redeemed during month of purchase and the 72-month period following the
month of purchase. The Fund, with certain exceptions, imposes a CDSC on
such Class B shares in accordance with the following schedule:
<TABLE>
<CAPTION>
CDSC
REDEMPTION TIMING IMPOSED
----------------- -------
<S> <C>
Month of purchase and the first twelve-month period following the month of purchase 5.00%
Second twelve-month period following the month of purchase .............................. 4.00%
Third twelve-month period following the month of purchase ............................... 3.00%
Fourth twelve-month period following the month of purchase .............................. 3.00%
Fifth twelve-month period following the month of purchase ............................... 2.00%
Sixth twelve-month period following the month of purchase ............................... 1.00%
</TABLE>
No CDSC is imposed on amounts redeemed thereafter.
o Commencing January 1, 1997, the Principal Underwriter will generally
reallow to broker-dealers or others a commission equal to 4.00% of the
price paid for each Class B share sold; the broker-dealer or other party
will also receive service fees at an annual rate of 0.25% of the value of
Class B shares maintained by the recipient and outstanding on the books of
the Fund for specified periods. Commencing January 1, 1997, with respect
to sales of Class B shares, the Principal Underwriter will not pay the
first year's service fee in advance.
o Class B shares purchased after January 1, 1997 that have been outstanding
for seven years after the month of purchase (rather than eight) will
automatically convert to Class A shares without imposition of a front-end
sales charge or exchange fee.
WITH RESPECT TO CLASS C SHARES:
o With respect to Class C shares purchased after January 1, 1997, the Fund,
with certain exceptions, will impose a CDSC of 1.00% on shares redeemed
during the month of purchase and the 12-month period following the month
of purchase.
o Commencing January 1, 1997, the Fund will not normally accept any purchase
of Class C shares in the amount of $500,000 or more.
OTHER MODIFICATIONS:
o Commencing January 1, 1997, shareholders may make permitted exchanges into
other Keystone America funds free of charge.
o With respect to shares purchased after January 1, 1997, no CDSC is imposed
when you redeem amounts derived from (1) increases in the value of shares
redeemed above the net cost of such shares; (2) certain shares with
respect to which the Fund did not pay a commission on issuance, including
shares acquired through reinvestment of dividend income and capital gains
distributions; (3) certain Class A shares held for more than 12 months
after the month of purchase; (4) Class B shares held for more than 72
months after the month of purchase; or (5) Class C shares held for more
than one year after the month of purchase.
o Effective January 1, 1997, no CDSC will be imposed on a redemption of
shares of the Fund in the event of automatic withdrawals under a
Systematic Income Plan of up to 1.0% per month of the shareholder's
initial account balance.
o Commencing January 1, 1997, under a Systematic Income Plan, each
withdrawal payment must be at least $75 and may be as much as 1.0% per
month or 3.0% per quarter of the total net asset value of the Fund shares
in the shareholder's account when the Systematic Income Plan was opened.
o Commencing January 1, 1997, in connection with a Keystone Automatic
Investment Plan, a shareholder may automatically transfer as little as $25
per month or $75 per quarter from his or her bank account or Keystone
Liquid Trust to the Keystone fund of his or her choice.
o Commencing January 1, 1997, the Fund may also sell Class A, Class B or
Class C shares at net asset value without any initial sales charge or a
CDSC to certain Directors, Trustees, officers and employees of the Fund,
Keystone, the Principal Underwriter, and certain of their affiliates, and
to members of the immediate families of such persons; to registered
representatives of firms with dealer agreements with the Principal
Underwriter; and to a bank or trust company acting as a trustee for a
single account.
o The Principal Underwriter may, at its own expense, pay concessions in
addition to those described above to broker-dealers including, from time
to time, to First Union Brokerage Services, Inc., an affiliate of
Keystone, that satisfy certain criteria established from time to time by
the Principal Underwriter. These conditions relate to increasing sales of
shares of the Keystone funds over specified periods and certain other
factors. Such payments may, depending on the broker-dealer's satisfaction
of the required conditions, be periodic and may, effective January 1,
1997, be up to 1.00% of the value of shares sold by such broker-dealer.
EFFECTS OF BANKING LAWS
The Glass-Steagall Act and other banking laws and regulations presently
prohibit member banks of the Federal Reserve System ("Member Banks") or their
non-bank affiliates from sponsoring, organizing, controlling, or distributing
the shares of registered open-end investment companies such as the Funds. Such
laws and regulations also prohibit banks from issuing, underwriting or
distributing securities in general. However, under the Glass-Steagall Act and
such other laws and regulations, a Member Bank or an affiliate thereof may act
as investment adviser, transfer agent or custodian to a registered open-end
investment company and may also act as agent in connection with the purchase of
shares of such an investment company upon the order of its customer. Keystone
and its affiliates, since they are direct or indirect subsidiaries of FUNB, are
subject to and in compliance with the aforementioned laws and regulations. In
the event the Glass-Steagall Act is deemed to prohibit depository institutions
from accepting certain payments from the Fund, or should Congress relax current
restrictions on depository institutions, the Boards of Trustees will consider
what action, if any, is appropriate.
The foregoing disclosure supersedes any prior disclosure in the Fund's
prospectus or statement of additional information to the extent it relates to
the same subject matter.
December 11, 1996
GRD-SK
