N-30D 1 dn30d.htm EVERGREEN EQUITY TRUST EVERGREEN EQUITY TRUST

Table of Contents

Letter to Shareholders 1
   
Evergreen Blue Chip Fund  

    Fund at a Glance

2
    Portfolio Manager Interview 3
   
Evergreen Equity Income Fund  
    Fund at a Glance 5
    Portfolio Manager Interview 6
   
Evergreen Growth and Income Fund  
    Fund at a Glance 8
    Portfolio Manager Interview 9
   
Evergreen Small Cap Value Fund  
    Fund at a Glance 12
    Portfolio Manager Interview 13
   
Evergreen Value Fund  
    Fund at a Glance 15
    Portfolio Manager Interview 16
   
Financial Highlights  
    Evergreen Blue Chip Fund
18
    Evergreen Equity Income Fund
20
    Evergreen Growth and Income Fund
22
    Evergreen Small Cap Value Fund
24
    Evergreen Value Fund
27
   
Schedules of Investments  
    Evergreen Blue Chip Fund
29
    Evergreen Equity Income Fund
34
    Evergreen Growth and Income Fund
43
    Evergreen Small Cap Value Fund
52
    Evergreen Value Fund
59
   
Combined Notes to  
Schedules of Investments
63
   
Statements of Assets and Liabilities
64
   
Statements of Operations
65
   
Statements of Changes in Net Assets
66
   
Combined Notes to Financial  
Statements
68

 

Evergreen Funds

Evergreen Funds is one of the nation’s fastest growing investment companies with more than $80 billion in assets under management.

We offer over 80 mutual funds to choose among and acclaimed service and operations capabilities, giving investors a broad range of quality investment products and services designed to meet their needs.

The Evergreen Funds employ intensive, research-driven investment strategies executed by over 90 research analysts and portfolio managers. The fund company remains dedicated to meeting the needs of investors and their advisors in a global economy. Look to Evergreen Funds to provide a distinctive level of service and excellence in investment management.

This semiannual report must be preceded or accompanied by a prospectus of an Evergreen fund contained herein. The prospectus contains more complete information, including fees and expenses, and should be read carefully before investing or sending money.


Mutual Funds:

Evergreen Distributor, Inc.
Evergreen FundsSM is a service mark of Evergreen Investment Services, Inc.

Letter to Shareholders
March 2001

  William M. Ennis
President and CEO

Dear Evergreen Shareholders:

We are pleased to provide the Evergreen Growth and Income Funds semiannual report, which covers the six-month period ended January 31, 2001.

A Challenging Environment for Investors

During 2000, U.S. equity markets challenged investors with a series of turbulent ups and downs and a constant rotation from one sector to another. The market favored the new economy then the old economy, big caps then mid-caps, value then growth, dot-coms then technology equipment–creating significant uncertainties for investors. In the beginning of the period, investors looked to the Federal Reserve Board’s upward interest rate adjustments to offset unsustainable growth. By the end of the period, a profoundly slowing economy indicated that the Federal Reserve Board would soon take an opposite stance and decrease interest rates. Thus far in 2001, the Federal Reserve Board has lowered interest rates twice in an effort to stimulate the slumping economy.

Concerns about potential inflation, interest rate fluctuations and sustainable growth have affected market valuations and contributed to market volatility during the period. The economy has definitely slowed after a period of excessive growth experienced in 1999 and early 2000. Despite dramatic market swings experienced over the past six-month period, there are positive indications for the remainder of 2001. We believe that the Federal Reserve Board’s focus on interest rates should support valuation levels and stimulate the slumping economy. This, coupled with an improving corporate profit environment, may set the stage for a rebound in the equity markets.

The Value of Diversification

An environment like the past six months offers many reasons for building a diversified portfolio rather than trying to predict the market’s movements. Diversification provides exposure to many different opportunities while reducing the risk of any single investment or strategy. We encourage you to talk to your financial advisor to confirm that your investment portfolio is appropriately diversified and structured to support your long-term investment objectives. Please visit us online at www.evergreen-funds.com for more information about Evergreen Funds.

Thank you for your continued investment in Evergreen Funds.

Sincerely,

William M. Ennis
President and CEO
Evergreen Investment Company, Inc.

EVERGREEN
Blue Chip Fund
Fund at a Glance as of January 31, 2001

“While we anticipate further cuts in short-term interest rates by the Federal Reserve, it is not clear whether or not the economy has gone through the worst of its slowdown”

CURRENT INVESTMENT STYLE1

Morningstar’s Style Box is based on a portfolio date as of 1/31/2001.

The Equity Style Box placement is based on a fund’s price-to-earnings and price-to-book ratio relative to the S&P 500, as well as the size of the companies in which it invests, or median market capitalization.

1 Source: 2001 Morningstar, Inc.

2 Past performance is no guarantee of future results. The performance of each class may vary based on differences in loads, fees and expenses paid by the shareholders investing in each class. The investment return and principal value will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Performance includes the reinvestment of income dividends and capital gain distributions.

Historical performance shown for Classes A, C and Y prior to their inception is based on the performance of Class B, the original class offered. These historical returns for Classes A and Y have not been adjusted to reflect the effect of each class’ 12b-1 fees. These fees are 0.25% for Class A and 1.00% for Classes B and C. Class Y does not pay 12b-1 fees. If these fees had been reflected, returns for Classes A and Y would have been higher.

Class Y shares are only offered to persons who owned Class Y shares of an Evergreen Fund on or before 12/31/1994; certain investors; and investment advisory clients of an investment advisor of an Evergreen Fund (or the investment advisor’s affiliates).

PERFORMANCE AND RETURNS2
Portfolio Inception Date: 9/11/1935  
Class A
    
Class B
  
Class C
  
Class Y
  
Class Inception Date  
1/20/1998
    
9/11/1935
  
1/22/1998
  
4/30/1999
  
6 months with sales charge   -13.75 %   -13.09 % -10.56 %  
n/a
  
6 months w/o sales charge   -8.49 %   -8.87 % -8.87 % -8.39 %
Average Annual Returns*                        
1 year with sales charge   -13.16 %   -12.78 % -10.28 %  
n/a
  
1 year w/o sales charge   -7.86 %   -8.55 % -8.58 % -7.62 %
5 years   14.05 %   14.63 % 14.91 % 15.26 %
10 years   12.88 %   13.28 % 13.30 % 13.48 %
Maximum Sales Charge   5.75 %   5.00 % 2.00 %  
n/a
  
    Front End     CDSC  
CDSC
        
6-month capital gain                        
distributions per share $ 2.30   $ 2.30   $ 2.30   $ 2.30  
* Adjusted for maximum applicable sales charge unless noted.              

LONG TERM GROWTH

Comparison of a $10,000 investment in Evergreen Blue Chip Fund, Class A shares2 , versus a similar investment in the Standard & Poor’s 500 Index (S&P 500) and the Consumer Price Index (CPI).

The S&P 500 is an unmanaged market index which does not include transaction costs associated with buying and selling securities or any mutual fund expenses. The CPI is a commonly used measure of inflation and does not represent an investment return. It is not possible to invest directly in an index.

The Fund’s investment objective is non-fundamental and may be changed without the vote of the Fund’s shareholders.

Foreign investments may contain more risks due to the inherent risks associated with changing political climates, foreign market instability and foreign currency fluctuations.

All data is as of January 31, 2001 and subject to change.

EVERGREEN
Blue Chip Fund
Portfolio Manager Interview

How did the Fund perform?

For the six-month period ended January 31, 2001, Evergreen Blue Chip Fund Class A shares returned –8.49%. Fund returns are before deduction of any applicable sales charges. During the same six-month period, the average return of large-cap core funds was –6.42%, according to Lipper Inc., an independent monitor of mutual fund performance, while the S&P 500 returned –3.98%.

Portfolio
Characteristics
 
(as of 1/31/2001)
  
       
Total Net Assets
$891,567,342  
 
Number of Holdings   113  
 
Beta*   0.92  
 
P/E Ratio*   29.7x  
 
*as of 12/31/2000      

What were the principal factors affecting performance during the six months?

Overall, it was a very challenging time for investing in large-cap, blue chip companies. Persistent volatility and market rotation characterized the six months, as investors moved from one industry group to another. The period actually started off well in August 2000, but conditions turned worse in September when stocks, and particularly technology stocks, fell into a severe correction that continued through December. Even within technology, industry leaders such as Cisco Systems that had helped the indices sustain good performance for most of the previous two years couldn’t withstand the downward pressures on stock prices.

Conditions grew worse in late October when Nortel, a leader in the telecommunications equipment sector, issued a pessimistic report about a build-up of equipment inventories by its customers. This undermined confidence in telecommunications spending, which up until then had resisted the worst of the correction in technology. On the heels of Nortel’s announcement, the S&P 500 Index lost 8% during the month of November. December was positive for both the market and the Fund, as performance broadened out and investors searched for opportunities outside technology.

While the Fund had an underweighted position in technology in the final months of the period, technology investments nevertheless were a drag on performance. The best relative performance in the second half of the fiscal period came from cyclical stocks and other stocks with lower valuations, as reflected in their price/earnings ratios.

What were your principal strategies during this period?

Our biggest change was to de-emphasize technology. We started the period with an underweight position in technology, but we lightened up our positions even further in October and November as the visibility of corporate spending on technology equipment deteriorated. At the end of the period, technology investments accounted for 21.0% of net assets, compared to 29.7% of Fund assets six months earlier. The severity of the correction in technology can be seen in the fact that during the six months, technology’s weighting in the S&P 500 fell from 31.8% to 23.2%. As the market capitalization of technology companies came down, their relative impact on the major market indices also was reduced. Within technology, we became relatively defensive, investing in service companies such as First Data Systems while retaining positions in companies such as International Business Machines that we believe have the most stable earnings.

EVERGREEN
Blue Chip Fund
Portfolio Manager Interview

As we reduced technology, we expanded our positions in quality retail companies, keeping investments in companies such as Wal-Mart and Home Depot while adding Target Corp. We believe these industry leaders should benefit from the actions of the Federal Reserve to lower short-term interest rates.

We also maintained our emphasis on financial services, although we shifted our focus to companies that should benefit from lower interest rates. Our investments included FleetBoston, a major regional bank in the Northeast, and Providian, which has a large credit card operation.

Top 5 Sectors
(as a percentage of 1/31/2001 net assets)
     
Information Technology 21.0%
Financials 16.6%
Health Care 13.7%
Industrials 11.9%
Consumer Discretionary 10.9%

What were some of the investments that significantly affected performance?

Health care investments made big contributions to Fund returns. Cardinal Health, a drug distributor, was an excellent performer, as was Cigna Corp., an HMO company that we added in the fourth quarter of 2000.

Another defensive stock that helped performance was Safeway, a well managed grocery store chain. It gave us stellar performance for most of the period until the market abandoned many defensive stocks for beaten-down technology companies in January 2001.

We also had good performance from quality consumer companies such as Ethan Allen and Jones New York. Masco, a diversified firm with several different subsidiaries with products in the home building and repair markets, also performed well for the Fund.

While we shifted the Fund’s emphasis within the financial services sector to focus on companies we believed would be the beneficiaries of declining interest rates, we do not believe the Fund’s performance has yet shown the positive impact of this shift.

Top 10 Holdings
(as a percentage of 1/31/2001 net assets)
     
General Electric Co.
3.7%
Microsoft Corp. 2.7%
Wal-Mart Stores, Inc. 2.6%
Citigroup, Inc. 2.5%
Exxon Mobil Corp. 2.4%
Pfizer, Inc. 2.1%
AOL Time Warner, Inc. 2.1%
International Business Machines Corp. 1.9%
Cisco Systems, Inc. 1.7%
Tyco International, Ltd. 1.7%

What is your outlook?

While we anticipate further cuts in short-term interest rates by the Federal Reserve, it is not clear whether or not the economy has gone through the worst of its slowdown. Some cyclical stocks in industries such as media, retail, construction and technology have already rallied on expectations of the favorable impact of interest rate cuts, but we are concerned about the possibility that some of them may have rallied too soon. High-growth technology stocks may be particularly vulnerable to further corrections.

In this uncertain environment, we have cautiously added some technology companies that already have suffered major corrections, including Lexmark and Applied Materials. We also have increased our holdings among companies somewhat smaller than large-cap, adding names such as Tenet Healthcare, in health care services, Stryker, in medical products, and McGraw-Hill, a publishing company. We continue to have large weightings in health care and financial services, with core holdings in industry leaders such as Pfizer and Citigroup.

EVERGREEN
Equity Income Fund
Fund at a Glance as of January 31, 2001

“In general, we tried to take advantage of the extremely attractive stock prices of sound companies that stood to benefit when economic growth improved and consumer spending increased.”

CURRENT INVESTMENT STYLE1

Morningstar’s Style Box is based on a portfolio date as of 1/31/2001.

The Equity Style Box placement is based on a fund’s price-to-earnings and price-to-book ratio relative to the S&P 500, as well as the size of the companies in which it invests, or median market capitalization.

1 Source: 2001 Morningstar, Inc.

2 Past performance is no guarantee of future results. The performance of each class may vary based on differences in loads, fees and expenses paid by the shareholders investing in each class. The investment return and principal value will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Performance includes the reinvestment of income dividends and capital gain distributions.

Historical performance shown for Classes A, B and C prior to their inception is based on the performance of Class Y, the original class offered. These historical returns for Classes A, B and C have not been adjusted to reflect the effect of each Class’ 12b-1 fees. These fees are 0.25% for Class A and 1.00% for Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had been reflected, returns would have been lower. The advisor is waiving a portion of its advisory fee. Had the fee not been waived, returns would have been lower.

Class Y shares are only offered to persons who owned Class Y shares of an Evergreen Fund on or before 12/31/1994; certain institutional investors; and investment advisory clients of an investment advisor of an Evergreen Fund (or the investment advisor’s affiliates).

PERFORMANCE AND RETURNS2
Portfolio Inception Date: 8/31/1978
Class A
    
Class B
  
Class C
  
Class Y
  
Class Inception Date
1/3/1995
    
1/3/1995
  
1/3/1995
  
8/31/1978
  
6 months with sales charge   5.99 %   7.01 % 10.01 %  
n/a
  
6 months w/o sales charge 12.44 %   12.01 % 12.01 % 12.58 %
Average Annual Returns*                          
1 year with sales charge 5.68 %   6.29 % 9.29 %  
n/a
  
1 year w/o sales charge 12.11 %   11.29 % 11.29 % 12.40 %
5 years 10.58 %   10.82 % 11.08 % 12.19 %
10 years 11.32 %   11.48 % 11.48 % 12.14 %
Maximum Sales Charge 5.75 %   5.00 % 2.00 %  
n/a
  
  Front End     CDSC   CDSC        
30-day SEC Yield 2.67 %   2.08 % 2.09 % 3.05 %
6-month income dividends                          
per share $ 0.41     $ 0.33   $ 0.33   $ 0.44  
6-month capital gain                          
distributions per share $ 0.01     $ 0.01   $ 0.01   $ 0.01  
* Adjusted for maximum applicable sales charge unless noted.              

LONG TERM GROWTH

Comparison of a $10,000 investment in Evergreen Equity Income Fund, Class A shares 2 , versus a similar investment in the Wilshire 5000 Index (Wilshire 5000), the Lehman Brothers Aggregate Bond Index (LBABI) and the Consumer Price Index (CPI).

The Wilshire 5000 and the LBABI are unmanaged market indices which do not include transaction costs associated with buying and selling securities or any mutual fund expenses. The CPI is a commonly used measure of inflation and does not represent an investment return. It is not possible to invest directly in an index.

The Fund’s investment objective is non-fundamental and may be changed without the vote of the Fund’s shareholders.

Foreign investments may contain more risks due to the inherent risks associated with changing political climates, foreign market instability and foreign currency fluctuations.

Smaller capitalization stock investing may offer the potential for greater long-term results, however, it is also generally associated with greater price volatility due to the higher risk of failure.

All data is as of January 31, 2001 and subject to change.

EVERGREEN
Equity Income Fund
Portfolio Manager Interview

How did the Fund perform?

The Fund performed very well. For the six-month period ended January 31, 2001, Evergreen Equity Income Fund Class A shares had a total return of 12.44%. Fund returns are before deduction of any applicable sales charges. During the same six-month period, the Wilshire 5000 returned –4.73% while the LBABI returned 8.12%. The average return of equity funds in the income category was 5.34% for the six-month period according to Lipper Inc., an independent monitor of mutual fund performance.

Portfolio
Characteristics
(as of 1/31/2001)
       
Total Net Assets   $1,015,802,377
Number of Holdings   182
Beta*   0.60
P/E Ratio*   19.9x
*as of 12/31/2000      

What factors affected Fund performance during the period?

Growth started to slow markedly during the six months, as the economy began to feel the effects both of earlier interest rate increases by the Federal Reserve and of sharply higher energy prices. This slowing became especially evident in the final months of 2000 with the release of several reports that documented economic weakness. Announcements by several major corporations that their earnings would fail to meet expectations added to concerns of investors.

We had anticipated this slowing growth and had positioned the Fund earlier in the calendar year to emphasize stocks of companies in defensive industries that would be able to sustain their earnings through changes in the economic cycle. These included stocks of utility companies, pharmaceutical companies and real estate investment trusts. As other investors began to shift toward these industries, which we already had emphasized, Fund performance benefited.

Top 5 Sectors
(as a percentage of 1/31/2001 net assets)
     
Financials
19.4%
Consumer Discretionary 19.4%
Utilities 13.6%
Information Technology 12.3%
Telecommunication Services 7.5%

What were your principal strategies?

We began the six-month period with a heavy emphasis on utilities, financial services and health care stocks, including pharmaceuticals. Our emphasis of these industries was a major factor driving the Fund’s strong performance for the period. Toward the end of 2000, evidence accumulated that the economy was slowing, with weakening corporate earnings and disappointing retail sales. Seeing this evidence, we became convinced that the Federal Reserve Board would soon change its policy and begin to cut short-term interest rates to stimulate the economy.

Acting on our conviction that the Federal Reserve Board would lower rates, we began to reposition the portfolio during the final quarter of 2000 by reducing our holdings in utility and pharmaceutical companies, taking profits in investments that had performed very well over the previous twelve months. For example, our investments in utilities, including both common stock and preferred convertible shares, fell from 22.9% of net assets at the start of the six-month period to 13.6% on January 31, 2001.

EVERGREEN
Equity Income Fund
Portfolio Manager Interview

As we de-emphasized defensive investments, we started to redeploy assets into economically sensitive industries that should start to show improved results when economic growth picks up again. These included: consumer cyclicals, including retailing, automobile and appliance companies; transportation companies; and technology companies whose stock prices became depressed. Especially in technology, we invested in convertible preferred shares of companies whose stocks typically paid very low or no dividends. Convertibles gave us a way to participate in growth companies, but still receive a regular dividend for our investment. The above-market yields on these investments also tend to provide downside support during periods of market weakness. During the six-month period, our investments in convertible preferred stock rose from 21.7% of net assets to 25.7% of net assets on January 31, 2001.

In technology, we invested in companies whose stock prices had fallen but which had good prospects for improved performance when economic growth started to increase. We invested in the convertible securities of companies such as Texas Instruments, Lattice Semiconductor, Vitesse Semiconductor, Triquint Semiconductor and Peregrine Systems.

In the consumer cyclical sector, we invested in retailers such as May Department Stores, Target, Tiffany’s, Radio Shack and Intimate Brands. Among appliance makers, we invested in Maytag and Whirlpool. We also invested in Ford Motor Co., Carnival Cruise Line, and Masco. Masco manufactures and distributes a variety of products for the home construction and improvement markets, such as Delta Faucets, that are sold through retailers, including Home Depot. Masco was an example of a strategy we used in purchasing a number of these stocks. During the fourth calendar quarter, we waited for companies in the consumer cyclical sector to pre-announce disappointing earnings. We then bought the stocks after they declined on the news.

In general, we tried to take advantage of the extremely attractive stock prices of what we believed were sound companies that stood to benefit when economic growth improved and consumer spending increased.

      Top 10 Holdings
   (as a percentage of 1/31/2001 net assets)
   
Qwest Trends Trust
2.1%
American Home Products Corp. 1.9%
Utilicorp United, Inc. 1.8%
Verizon Communications 1.8%
QUALCOMM, Inc. 1.6%
Williams Companies, Inc. 1.5%
CMS Energy Corp. 1.4%
AES Trust III 1.4%
Global Crossing, Ltd. 1.2%
XL Capital, Ltd. 1.2%

What is your outlook?

In the short run, we expect to continue to see reports confirming lackluster economic results. Until investors are confident that the economy is turning around, stock prices will be caught in a tug of war that reflects investor uncertainty. However, we believe that the Federal Reserve Board will continue to reduce short-term interest rates and eventually the economy will start to grow. This should favor the economically sensitive stocks that we recently have been emphasizing.

Longer term, we are more optimistic about the potential in the stock market over the next year. We believe the economy should start recovering during the latter part of 2001. Lower interest rates and the possibility of federal income tax cuts should be stimulants for growth.

We are positive about stocks in 2001.

EVERGREEN
Growth and Income Fund
Fund at a Glance as of January 31, 2001

“We believe the Fund is well positioned to take advantage of renewed economic growth later this year.”

CURRENT INVESTMENT STYLE1

Morningstar’s Style Box is based on a portfolio date as of 1/31/2001. The Equity Style Box placement is based on a fund’s price-to-earnings and price-to-book ratio relative to the S&P 500, as well as the size of the companies in which it invests, or median market capitalization. 1 Source: 2001 Morningstar, Inc.

2 Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The performance of each class may vary based on differences in loads, fees and expenses paid by the shareholders investing in each class. Performance includes the reinvestment of income dividends and capital gain distributions.

Historical performance shown for Classes A, B and C prior to their inception is based on the performance of Class Y, the original class offered. These historical returns for Classes A, B and C have not been adjusted to reflect the effect of each class’ 12b-1 fees. These fees are 0.25% for Class A and 1.00% for Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had been reflected, returns would have been lower. Returns reflect expense limits previously in effect, without which returns would have been lower.

Class Y shares are only offered to persons who owned Class Y shares of an Evergreen Fund on or before 12/31/1994; certain institutional investors; and investment advisory clients of an investment advisor of an Evergreen Fund (or the investment advisor’s affiliates).

The Fund’s investment objective is non-fundamental and may be changed without the vote of the Fund’s shareholders. Foreign investments may contain more risk due to the inherent risks associated with changing political climates, foreign market instability and foreign currency fluctuations.

PERFORMANCE AND RETURNS2
Portfolio Inception Date: 10/15/1986  
Class A
      
Class B
  
Class C
  
Class Y
  
Class Inception Date  
1/3/1995
      
1/3/1995
  
1/3/1995
  
10/15/1986
  
6 months with sales charge   -5.15 %     -4.17 % -1.54 %  
n/a
  
6 months w/o sales charge   0.62 %     0.21 %   0.21 %  
0.72
 %
Average Annual Returns *                          
1 year with sales charge   -4.03 %     -3.40 % -0.75 %  
n/a
  
1 year w/o sales charge   1.81 %     1.02 %   1.02 %   2.04 %
5 years   11.28 %     11.51 % 11.77 % 12.89 %
10 years   13.98 %     14.15 % 14.16 % 14.83 %
Maximum Sales Charge   5.75 %     5.00 %   2.00 %   n/a  
   
Front End
       CDSC     CDSC        
6-month capital gain                          
distributions per share $ 3.63     $ 3.63   $ 3.63   $ 3.63  
* Adjusted for maximum applicable sales charge unless noted.              

LONG TERM GROWTH

Comparison of a $10,000 investment in Evergreen Growth and Income Fund, Class A shares 2 , versus a similar investment in the Standard and Poor’s 400 Mid-Cap Index (S&P 400), the Standard and Poor’s 500 Index (S&P 500), the Russell 1000 Value Index (Russell 1000 Value) and the Consumer Price Index (CPI).

The S&P 400, Russell 1000 Value and S&P 500 are unmanaged market indices which do not include transaction costs associated with buying and selling securities or any mutual fund expenses. The CPI is a commonly used measure of inflation and does not represent an investment return. It is not possible to invest directly in an index.

Funds that invest in high yield, lower-rated bonds may contain more risks due to the increased possibility of default.

All data is as of January 31, 2001 and is subject to change.

EVERGREEN
Growth and Income Fund
Portfolio Manager Interview

How did the Fund perform?

For the six-month period ended January 31, 2001, Evergreen Growth and Income Fund’s Class A shares had a total return of 0.62%. Fund returns are before deduction of any applicable sales charges. During the same six-month period, the S&P 500, a benchmark for large company investing, returned –3.98%, the Russell 1000 Value returned 10.79% and the S&P 400 MidCap returned 8.52%.

Portfolio
Characteristics
(as of 1/31/2001)
       
Total Net Assets
$1,238,952,086
Number of Holdings   222
Beta*   0.89
P/E Ratio   20.3x
*as of 12/31/2000      

What were the major factors affecting performance during the six-month period?

Investors were dealing with the effects of the Federal Reserve Board’s earlier attempts to raise short-term interest rates to slow the pace of economic growth and reduce the threat of inflation. In general, stock performance tended to discount, or reflect the anticipation of, an economic slowdown. Major indices, such as the S&P 500, reflected this poor environment for stocks, particularly in economically sensitive industries and especially in the technology sector. Although we had kept the Fund underweighted in technology for most of the period, our technology holdings suffered along with the rest of the sector through a very difficult period. In the fourth quarter of 2000 we raised our technology weighting. While this hurt performance in the short term, we believe we have bought many good businesses on sale and the Fund should benefit in the longer term.

Top 5 Sectors
(as a percentage of 1/31/2001 net assets)
     
Financials
23.2%
Information Technology 20.5%
Consumer Discretionary 15.5%
Industrials 12.3%
Health Care 12.1%

What were your principal strategies during the period?

Our main focus was on preserving capital during a period of market volatility. Earlier in 2000, we had raised the Fund’s weightings in defensive industries, which we thought would do relatively well in an economic slowdown. We emphasized companies in aerospace and defense, health care and financial services that we thought would continue to have stable earnings even if the economy was not doing well. We tried to de-emphasize technology and other economically sensitive industries.

What were some of the specific investments that most influenced performance?

We had excellent performance in the industries that we emphasized.

In aerospace and defense, the performance leaders included Lockheed-Martin, General Dynamics and L3 Communications.

Several health care holdings had outstanding performance, including Becton-Dickinson and Pfizer, two major pharmaceutical companies. We obtained our position in Pfizer when the company acquired Warner-Lambert, in which we had invested. Other health care stocks that had excellent returns included Cardinal Health, a major drug distributor, and CVS, a national pharmacy chain.

EVERGREEN
Growth and Income Fund
Portfolio Manager Interview

Among our financial services holdings, Neuberger-Berman, a mutual fund management company, and Bank United, a savings and loan association, were strong performers.

The Fund benefited when three holdings were acquired during the period. The first was A.C. Nielson, which was purchased by VNU Corp., a Netherlands-based company. A.C. Nielson is a global market leader in consumer research. Its proprietary software enables it to track, through scanners at checkout counters, consumer behavior and preferences. Southdown Corp. was the second acquisition target. One of the last remaining large independent cement producers in the United States, Southdown was acquired by Cemex, a major Mexican-based company in the same industry. The Fund also benefited when Niagara-Mohawk, an electric utility in New York, was purchased.

Most of the major disappointments were in technology. Even though we were underweighted in the industry, our technology positions hurt performance when they were pulled down in the general industry decline. Similarly, our holdings in the media industry hurt performance, despite the fact that we had reduced our positions from earlier in the year. Radio broadcasting companies such as Clear Channel Communications and Emmis Communications Corp. detracted from performance.

Our de-emphasis of the utility industry also held back performance during a period when utility stocks did well. We were unwilling to invest in utilities because very few companies in the industry met our investment criteria for outstanding businesses.

How would you describe the investment style of the Fund?

We invest in what we believe are outstanding companies that are on sale. Our definition of outstanding companies includes those that have competitive advantages, that enjoy barriers to entry that discourage additional competition, and that have shown an ability to generate high returns on invested capital. By “on sale,” we mean those stocks whose prices are trading at substantial discounts relative to the private market value of the companies or at significant discounts to the prices that other corporations would be likely to pay in an acquisition.

In looking for outstanding companies that are on sale, we search among both large-cap and mid-cap stocks to find the best opportunities for the Fund. We have built a good long-term record following this discipline and will continue to use this strategy in evaluating opportunities.

Top 10 Holdings
(as a percentage of 1/31/2001 net assets)
     
Stilwell Financial, Inc.
2.7%
Convergys Corp. 2.4%
American Tower Systems Corp., Class A 2.3%
Veritas Software Corp. 2.1%
Pfizer, Inc. 2.0%
Charter Communications, Inc. 1.8%
General Electric Co. 1.6%
Lehman Brothers Holdings, Inc. 1.6%
Lockheed Martin Corp. 1.6%
Wells Fargo & Co. 1.5%

EVERGREEN
Growth and Income Fund
Portfolio Manager Interview

What is your outlook?

We believe the Fund is well positioned to take advantage of renewed economic growth later this year.

In January 2001, the final month of the six-month period, the Federal Reserve Board started moving aggressively to stimulate the economy by lowering short-term interest rates. While the effects of interest-rate changes typically take six to nine months to work their way through the economy, the stock market usually moves ahead of economic trends. We expect corporate earnings may start improving in the second half of 2001, but stock prices may move ahead of positive earnings reports.

We already have started repositioning the Fund, taking profits and reducing our holdings in defensive areas such as healthcare and aerospace and defense. We have, for example, sold our entire position in CVS, one of the better performing stocks last year. We have an overweighted position in financial services stocks, which should benefit from declining interest rates, and we are adding to our investments in industries that typically do well early in business cycles. These include cyclical technology, building products and consumer cyclical stocks.

EVERGREEN
Small Cap Value Fund
Fund at a Glance as of January 31, 2001

“Historically, small cap stocks do well as the Federal Reserve Board lowers short-term rates.”

CURRENT INVESTMENT STYLE1

Morningstar’s Style Box is based on a portfolio date as of 1/31/2001.

The Equity Style Box placement is based on a fund’s price-to-earnings and price-to-book ratio relative to the S&P 500, as well as the size of the companies in which it invests, or median market capitalization.

1 Source: 2001 Morningstar, Inc.

2 Past performance is no guarantee of future results. The performance of each class may vary based on differences in loads, fees and expenses paid by the shareholders investing in each class. The investment return and principal value will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Performance includes the reinvestment of income dividends and capital gain distributions.

Historical performance shown for Classes A, B, C and IS prior to their inception is based on the performance of Class Y, the original class offered. These historical returns for Classes A, B, C and IS have not been adjusted to reflect the effect of each Class’ 12b-1 fees. These fees are 0.25% for Classes A and IS, and 1.00% for Classes B and C. Class Y does not pay 12b-1 fees. If these fees had been reflected, returns would have been lower. The advisor is waiving a portion of its advisory fee. Had the fee not been waived, returns would have been lower.

Class IS shares are only available to institutional shareholders with a $1 million investment.

Class Y shares are only offered to persons who owned Class Y shares of an Evergreen Fund on or before 12/31/1994; certain institutional investors; and investment advisory clients of an investment advisor of an Evergreen Fund (or the investment advisor's affiliates).

PERFORMANCE AND RETURNS2
Portfolio Inception Date:                    
10/1/1993 Class A   Class B   Class C   Class Y   Class IS  
Class Inception Date 1/3/1995   1/3/1995   1/24/1995   10/1/1993   6/30/2000  
6 months with sales charge 13.40 % 14.83 % 17.87 %
n/a
  
n/a
  
6 months w/o sales charge 20.32 % 19.83 % 19.87 % 20.48 % 20.29 %
Average Annual Returns*                    
1 year with sales charge 22.72 % 24.16 % 27.13 %
n/a
  
n/a
  
1 year w/o sales charge 30.22 % 29.16 % 29.13 % 30.46 % 30.25 %
5 years 11.79 % 12.01 % 12.23 % 13.41 % 13.37 %
Since Portfolio Inception 11.99 % 12.19 % 12.16 % 13.13 % 13.11 %
Maximum Sales Charge 5.75 % 5.00 % 2.00 %
n/a
  
n/a
  
  Front End   CDSC   CDSC          
* Adjusted for maximum applicable sales charge unless noted.          

LONG TERM GROWTH

Comparison of a $10,000 investment in Evergreen Small Cap Value Fund, Class A shares 2 , versus a similar investment in the Russell 2000 Index (Russell 2000), the Russell 2000 Value Index (Russell 2000 Value) and the Consumer Price Index (CPI).

The Russell 2000 and the Russell 2000 Value are unmanaged market indices which do not include transaction costs associated with buying and selling securities or any mutual fund expenses. The CPI is a commonly used measure of inflation and does not represent an investment return. It is not possible to invest directly in an index.

The Fund’s investment objective is non-fundamental and may be changed without the vote of the Fund’s shareholders.

Smaller capitalization stock investing may offer the potential for greater long-term results, however, it is also generally associated with greater price volatility due to the higher risk of failure.

Foreign investments may contain more risks due to the inherent risks associated with changing political climates, foreign market instability and foreign currency fluctuations.

All data is as of January 31, 2001 and subject to change.

EVERGREEN
Small Cap Value Fund
Portfolio Manager Interview

How did the Fund perform?

The Fund performed very well. For the six-month period ended January 31, 2001, Evergreen Small Cap Value Fund Class A shares returned 20.32%. Fund returns are before deduction of any applicable sales charges. During the same period, the Russell 2000 Value returned 15.40%, while the Russell 2000, which reflects the performance of the small company stock universe, returned 2.31%. The average return of small cap value funds was 15.29% during the six months, according to Lipper Inc., an independent monitor of mutual fund performance.

Portfolio
Characteristics
(as of 1/31/2001)
       
Total Net Assets
$256,498,628
Number of Holdings   159
Beta*   0.45
P/E Ratio*   15.7x
*as of 12/31/2000      

What were the principal factors affecting performance?

Small cap value stocks outperformed small cap growth stocks in general during the period. The value stocks were less susceptible to the downturns and volatility that hurt growth stocks, particularly technology stocks, during the six months. Among small cap value stocks, stocks in the more defensive industries had the best relative performance. These included health care, financial services and energy.

Top 5 Sectors
(as a percentage of 1/31/2001 net assets)
     
Financials
21.6%
Consumer Discretionary 19.4%
Industrials 13.9%
Information Technology 13.5%
Health Care 10.8%

What investments in particular supported Fund performance?

Health care, consumer discretionary, financial services and energy holdings made the greatest contributions to the Fund’s returns.

In health care, Henry Schein, a dental products distributor, and Bergen Brunswig, a drug distributor, both had excellent performance. Henry Schein’s stock rose by 56.57% during the period, helped both by a strong market for dental products and by a turnaround in its own business operations. Bergen Brunswig rose by 42.85%, benefiting from a stabilization of its institutional pharmacy business, which had been under pressure because of reductions in government reimbursements to nursing homes.

Other strong performers within the health care industry included: AmeriSource, the fourth largest drug distributor in the United States, whose stock rose by 36.90%; KV Pharmaceutical, a generic drug company whose stock went up 48.43%; and Apria Healthcare, a home health care company whose stock rose by 47.17%.

We increased the Fund’s weighting in consumer-related stocks during the six-month period. We believed many consumer stocks were selling at extremely attractive valuations and stood to benefit from a recovery in consumer spending due to lower interest rates and the likelihood of a tax cut in Washington. In December, for example, we purchased Williams Sonoma, a specialty

EVERGREEN
Small Cap Value Fund
Portfolio Manager Interview

retailer, at a price/earnings ratio of approximately 12 times its projected 2001 earnings. The stock appreciated 48.89% in the few weeks it was in the portfolio.

Our investment in Reebok International, an athletic footwear company, appreciated 61.42% during the six-month period, while our Wolverine World Wide investment rose by 45.82%. Wolverine, which makes Wolverine and Merrill boots as well as Hush Puppy shoes, benefited from growth in the footwear sector.

In addition to Williams Sonoma, several other retail stocks produced excellent returns. Ross Stores rose by 49.49% during the six months, while Ethan Allen Furniture appreciated 44.58%. Abercrombie & Fitch was up 85.59% during the period, while American Eagle Outfitters rose by 86.88%.

In financial services, we focused on banks with good credit quality that had the potential to benefit from declining interest rates, which should result in higher profit margins. Astoria Financial, a savings and loan association based in New York, was the performance leader among these holdings, rising 81.83%. Other strong performers included First Oak Brook, which was up 43.92% and Cullen/Frost Bankers, a regional bank headquartered in Texas, which rose by 37.72% during the period. Centura Banks, which is being acquired by Royal Bank of Canada, was another excellent performer, returning 69.05% during the period.

Several energy holdings had extremely strong performance, helped by higher natural gas and oil prices which led to improved earnings and stronger cash flow. UTI Energy Corp. rose by 109.46%; Cabot Oil and Gas gained 44.88%; and Cross Timbers Oil appreciated 89.06% during the six-month period.

Top 10 Holdings
(as a percentage of 1/31/2001 net assets)
   
Granite State Bankshares, Inc.
1.6%
Mid-State Bancshares 1.4%
Integrated Circuit System, Inc. 1.3%
United Rentals, Inc. 1.2%
Cullen/Frost Bankers, Inc. 1.2%
Banknorth Group, Inc. 1.2%
Pier 1 Imports, Inc. 1.1%
Apogent Technology, Inc. 1.1%
Watson Pharmaceuticals, Inc. 1.1%
Roper Industries, Inc. 1.1%

What is your outlook?

We are very bullish on small cap value stocks.

We continue to find extremely attractive valuations for small cap value stocks, even after excellent performance in the sector during the past several months. This strong performance has increased investor interest in the small cap value market and many professional managers appear to be increasing their allocations to small-cap value stocks.

The interest rate reductions by the Federal Reserve Board also should help lift small cap stocks. The Federal Reserve Board lowered short-term rates by a total of 100 basis points during January 2001 and most observers expect further rate cuts in the coming months. Historically, small cap stocks do well as the Federal Reserve Board lowers short-term rates. Companies find it easier to borrow, and lower financing costs also typically encourage leveraged buyout and merger-and-acquisition activity, supporting small cap stock prices.

EVERGREEN
Value Fund
Fund at a Glance as of January 31, 2001

“We believe that our emphasis on fundamental analysis and investment discipline should help sustain performance, whichever way the economy goes.”

CURRENT INVESTMENT STYLE1

Morningstar’s Style Box is based on a portfolio date as of 1/31/2001.

The Equity Style Box placement is based on a fund’s price-to-earnings and price-to-book ratio relative to the S&P 500, as well as the size of the companies in which it invests, or median market capitalization.

1 Source: 2001 Morningstar, Inc.

2 Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. The performance of each class may vary based on differences in loads, fees and expenses paid by the shareholders investing in each class. Performance includes the reinvestment of income dividends and capital gain distributions.

Historical performance shown for Classes B, C and Y prior to their inception is based on the performance of Class A, the original class offered. These historical returns for Classes B, C and Y have not been adjusted to reflect the effect of each class' 12b-1 fees. These fees are 0.25% for Class A and 1.00% for Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had been reflected, returns for Classes B and C would have been lower while returns for Class Y would have been higher. Returns reflect expense limits previously in effect, without which returns would have been lower.

PERFORMANCE AND RETURNS2
Portfolio Inception Date: 4/12/1985  
Class A
    
Class B
  
Class C
  
Class Y
  
Class Inception Date  
4/12/1985
    
2/2/1993
  
9/2/1994
  
1/3/1991
  
6 month with sales charge     3.22 %     4.22 %   7.18 %  
n/a
  
6 month w/o sales charge     9.51 %     9.09 %   9.13 %   9.69 %
Average Annual Returns*                            
1 year with sales charge     7.20 %     7.85 % 10.90 %  
n/a
  
1 year w/o sales charge   13.73 %   12.85 % 12.90 % 14.01 %
5 years   11.60 %   11.86 % 12.12 % 13.22 %
10 years   13.00 %   13.04 % 13.15 % 13.98 %
Maximum Sales Charge     5.75 %     5.00 %   2.00 %  
n/a
  
    Front End    
CDSC
  
CDSC
        
30-day SEC Yield     0.41 %   -0.29 % -0.28 %   0.68 %
6-month income dividends                            
per share   $ 0.10     $ 0.03   $ 0.03   $ 0.12  
6-month capital gain                            
distributions per share   $ 2.23     $ 2.23   $ 2.23   $ 2.23  
* Adjusted for maximum applicable sales charge unless noted.              

LONG TERM GROWTH

Comparison of a $10,000 investment in Evergreen Value Fund, Class A shares 2 , versus a similar investment in the Standard & Poor’s 500 Index (S&P 500), the Russell 1000 Value Index (Russell 1000 Value) and the Consumer Price Index (CPI).

The S&P 500 and the Russell 1000 Value are unmanaged market indices which do not include transaction costs associated with buying and selling securities or any mutual fund expenses. The CPI is a commonly used measure of inflation and does not represent an investment return. It is not possible to invest directly in an index.

Class Y shares are only offered to persons who owned Class Y shares of an Evergreen Fund on or before 12/31/1994; certain institutional investors; and investment advisory clients of an investment advisor of an Evergreen Fund (or the investment advisor’s affiliates).

The Fund’s investment objective is non-fundamental and may be changed without the vote of the Fund’s shareholders.

Foreign investments may contain more risk due to the inherent risks associated with changing political climates, foreign market instability and foreign currency fluctuations.

All data is as of January 31, 2001 and is subject to change.

EVERGREEN
Value Fund
Portfolio Manager Interview

How did the Fund perform?

For the six-month period ended January 31, 2001, Evergreen Value Fund Class A shares returned 9.51%. Fund returns are before deduction of any applicable sales charges. During the same period, the S&P 500 returned –3.98%, while the Russell 1000 Value Index returned 10.79%. Among relevant competitive mutual fund groups, the median return of multi-cap value funds was 11.10% while the median return of large-cap value funds was 5.50%, according to Lipper Inc., an independent monitor of mutual fund performance.

Portfolio
Characteristics
(as of 1/31/2001)
       
Total Net Assets   $634,294,201
Number of Holdings   86
Beta*   0.78
P/E Ratio*   22.8x
*as of 12/31/2000      

What factors affected performance during the period?

Stocks of utility, financial services, capital goods and basic materials companies were the strongest performers among industry groups in the Russell 1000 Value Index during the six-month period. Utilities and financial services were the performance leaders early in the six months when investors preferred companies in industries with relatively stable earnings. Capital goods and basic materials, two more economically sensitive industry groups, improved later, especially in January 2001 as investors anticipated that the Federal Reserve Board’s interest rate cuts would stimulate economic growth and boost cyclical companies.

In this environment, performance benefited from our strategy of emphasizing defensive industries such as financial services, utilities and pharmaceuticals early in the period before adding to our positions in cyclical industries later.

Top 5 Sectors
(as a percentage of 1/31/2001 net assets)
     
Financials
29.5%
Information Technology 11.8%
Energy 8.8%
Consumer Discretionary 8.6%
Industrials 8.4%

What were your principal strategies?

As the period progressed, we became convinced that the prices of stocks in cyclical industries had already discounted—or priced to anticipate—an economic slowdown. A number of indicators encouraged this viewpoint, including: the spreads of high-yield, lower quality bond yields above Treasury bonds and the low valuations of cyclical stocks using measures such as price/earnings ratios. Toward the end of the period, the stock prices of cyclical companies issuing profit warnings started to fall less dramatically than they had earlier in the year. This often indicates that stock prices have neared their lows or troughs, with less risk of further severe losses in share prices.

As our conviction grew that cyclical stocks were becoming more attractive, we increased our holdings in companies that tend to prosper in economic expansions. At the end of the six-month period, we were overweight in technology stocks, as well as in cyclical industries such as retail. On January 31, 2001, the Fund’s weighting in technology had been raised to 11.8% of net assets, compared to a 4.8% weighting in the benchmark Russell 1000 Value Index. In

E V E R G R E E N

Value Fund

Portfolio Manager Interview

increasing our technology holdings, we invested in companies such as Texas Instruments and Alterra, two semi-conductor firms, and Lexmark, a manufacturer of printers.

Top 10 Holdings
(as a percentage of 1/31/2001 net assets)
     
Tyco International, Ltd.
3.7%
Exxon Mobil Corp. 3.1%
BJ's Wholesale Club, Inc. 2.8%
Freddie Mac 2.8%
Citigroup, Inc. 2.6%
Verizon Communications 2.6%
Philip Morris Companies, Inc. 2.4%
PNC Financial Services Group 2.2%
Consolidated Edison, Inc. 2.2%
Becton Dickinson & Co. 2.0%

What type of investments most affected Fund performance?

Our emphasis on the financial services industry and our stock selection within the industry were major factors in Fund performance early in the period. We had a large position in PNC Financial Services, a major bank in the Eastern states, whose stock rose 46% during the six-month period. We were overweighted in Fannie Mae and Freddie Mac, government-related mortgage enterprises, which had strong performance in the period. Fannie Mae rose by 50% while Freddie Mac’s stock climbed by 55%. We also had large positions in AMBAC, a municipal bond insurer, whose stock rose 30% and in John Hancock Financial Services, which was up by 49% during the six months.

Cyclical holdings in general helped in the final months of the period, particularly in January 2001 when the sector rallied sharply. However, we had small holdings in two capital goods companies that were disappointing performers and that detracted from Fund returns. We have eliminated those positions from the Fund’s portfolio.

What is your outlook?

We are bullish about opportunities in the stock market.

If the economy continues to weaken, we can expect the Federal Reserve to lower short-term interest rates further to stimulate growth. Even if growth does not improve noticeably, stock prices already have fallen to reflect a poor outlook and the risks of further significant deterioration do not appear very alarming. Any acceleration in economic growth would be a positive for stocks in general, and particularly for those in the cyclical industries that we have recently emphasized.

We believe the Fund is well positioned, whether the economy stagnates or accelerates in growth. We think performance for the remainder of the year will be most dependent on individual stock selection. We believe that our emphasis on fundamental analysis and investment discipline should help sustain performance, whichever way the economy goes.

 
EVERGREEN
Blue Chip Fund
Financial Highlights
(For a share outstanding throughout each period)
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
       2000      1999      1998 (a)
 
CLASS A SHARES
 
Net asset value, beginning of period      $34.79        $32.88        $30.42        $27.39  
       
       
       
       
  
Income from investment operations
Net investment income (loss)      0        (0.03 )      0.05        0.08  
Net realized and unrealized gains or losses on securities      (2.93 )      4.34        4.82        3.01  
       
       
       
       
  
Total from investment operations      (2.93 )      4.31        4.87        3.09  
       
       
       
       
  
 
Distributions to shareholders from
Net investment income      0        0        (0.03 )      (0.06 )
Net realized gains      (2.30 )      (2.40 )      (2.38 )      0  
       
       
       
       
  
Total distributions      (2.30 )      (2.40 )      (2.41 )      (0.06 )
       
       
       
       
  
 
Net asset value, end of period      $29.56        $34.79        $32.88        $30.42  
       
       
       
       
  
Total return*      (8.49 %)      13.22 %      17.29 %      11.29 %
Ratios and supplemental data
Net assets, end of period (millions)      $  409        $  467        $  382        $  285  
Ratios to average net assets
    Expenses‡      1.17 %†      1.15 %      1.20 %      1.20 %†
    Net investment income (loss)      0.04 %†      (0.04 %)      0.19 %      0.49 %†
Portfolio turnover rate      118 %      153 %      111 %      112 %
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended August 31,
       2000      1999      1998 (b)      1997      1996      1995
 
CLASS B SHARES
 
Net asset value, beginning of period      $34.15        $32.54        $30.35        $29.79        $25.05        $22.98        $23.21  
       
       
       
       
       
       
       
  
Income from investment operations
Net investment income (loss)      (0.09 )      (0.14 )      (0.05 )      (0.12 )      0.15        0.12        0.25  
Net realized and unrealized gains or losses on
securities		      (2.91 )      4.15        4.62        5.72        7.97        3.69        2.66  
       
       
       
       
       
       
       
  
Total from investment operations      (3.00 )      4.01        4.57        5.60        8.12        3.81        2.91  
       
       
       
       
       
       
       
  
 
Distributions to shareholders from
Net investment income      0        0        0        (0.08 )      (0.20 )      (0.76 )      (0.36 )
Net realized gains      (2.30 )      (2.40 )      (2.38 )      (4.96 )      (3.18 )      (0.98 )      (2.78 )
       
       
       
       
       
       
       
  
Total distributions      (2.30 )      (2.40 )      (2.38 )      (5.04 )      (3.38 )      (1.74 )      (3.14 )
       
       
       
       
       
       
       
  
 
Net asset value, end of period      $28.85        $34.15        $32.54        $30.35        $29.79        $25.05        $22.98  
       
       
       
       
       
       
       
  
Total return*      (8.87 %)      12.40 %      16.26 %      20.89 %      34.76 %      17.31 %       13.87 %
Ratios and supplemental data
Net assets, end of period (millions)      $  443        $  477        $  255        $  118        $  313        $  225        $  199  
Ratios to average net assets
    Expenses‡      1.93 %†      1.90 %      1.95 %      1.68 %†      1.57 %      1.85 %      1.75 %
    Net investment income (loss)      (0.71 %)†      (0.79 %)      (0.60 %)      (0.02 %)†      0.55 %      0.52 %      1.09 %
Portfolio turnover rate      118 %      153 %      111 %      112 %      109 %      139 %      115 %
 
(a)
For the period from January 20, 1998 (commencement of class operations) to July 31, 1998.
(b)
For the eleven months ended July 31, 1998. The Fund changed its fiscal year end from August 31 to July 31, effective July 31, 1998.
*
Excluding applicable sales charges.
†
Annualized.
‡
The ratio of expenses to average net assets excludes expense reductions but includes fee waivers.
 
See Combined Notes to Financial Statements.
 
 
EVERGREEN
Blue Chip Fund
Financial Highlights
(For a share outstanding throughout each period)
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
       2000      1999      1998 (a)
 
CLASS C SHARES                    
 
Net asset value, beginning of period      $  34.24        $  32.63        $30.40        $27.70  
       
       
       
       
  
Income from investment operations                    
Net investment income (loss)      (0.09 )      (0.04 )      (0.11 )      0  
Net realized and unrealized gains or losses on securities      (2.92 )      4.05        4.72        2.72  
       
       
       
       
  
Total from investment operations      (3.01 )      4.01        4.61        2.72  
       
       
       
       
  
 
Distributions to shareholders from                    
Net investment income      0        0        0        (0.02 )
Net realized gains      (2.30 )      (2.40 )      (2.38 )      0  
       
       
       
       
  
Total distributions      (2.30 )      (2.40 )      (2.38 )      (0.02 )
       
       
       
       
  
 
Net asset value, end of period      $  28.93        $  34.24        $32.63        $30.40  
       
       
       
       
  
Total return*      (8.87 %)      12.37 %      16.37 %      9.80 %
Ratios and supplemental data                    
Net assets, end of period (thousands)      $23,511        $21,810        $2,969        $  780  
Ratios to average net assets                    
    Expenses‡      1.93 %†      1.90 %      1.95 %      2.02 %†
    Net investment loss      (0.72 %)†      (0.78 )%      (0.67 )%      (0.27 )%†
Portfolio turnover rate      118 %      153 %      111 %      112 %
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
       2000      1999 (b)
 
CLASS Y SHARES               
 
Net asset value, beginning of period      $  34.59        $  32.62        $32.30  
       
       
       
  
Income from investment operations               
Net investment income      0.05        0.04        0  
Net realized and unrealized gains or losses on securities      (2.93 )      4.33        0.32  
       
       
       
  
Total from investment operations      (2.88 )      4.37        0.32  
       
       
       
  
 
Distributions to shareholders from               
Net realized gains      (2.30 )      (2.40 )      0  
       
       
       
  
Total distributions      (2.30 )      (2.40 )      0  
       
       
       
  
 
Net asset value, end of period      $  29.41        $  34.59        $32.62  
       
       
       
  
Total return      (8.39 %)      13.53 %      0.99 %
Ratios and supplemental data               
Net assets, end of period (thousands)      $16,642        $15,967        $  789  
Ratios to average net assets               
    Expenses‡      0.93 %†      0.90 %      0.95 %†
    Net investment income      0.29 %†      0.22 %      0.08 %†
Portfolio turnover rate      118 %      153 %      111 %
 
(a)
For the period from January 22, 1998 (commencement of class operations) to July 31, 1998.
(b)
For the period from April 30, 1999 (commencement of class operations) to July 31, 1999.
*
Excluding applicable sales charges.
†
Annualized.
‡
The ratio of expenses to average net assets excludes expense reductions but includes fee waivers.
 
See Combined Notes to Financial Statements.
 
 
EVERGREEN
Equity Income Fund
Financial Highlights
(For a share outstanding throughout each period)
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended January 31,
       2000      1999 #      1998      1997 (a) #      1997      1996
 
CLASS A SHARES                                   
 
Net asset value, beginning of period      $    20.86        $    22.57        $    23.19        $  23.94        $  21.79        $  20.15        $  17.28  
       
       
       
       
       
       
       
  
Income from investment operations                                   
Net investment income      0.42        0.98        0.94        1.05        0.52        1.02        1.01  
Net realized and unrealized gains or
losses on securities and foreign
currency related transactions		      2.14        (0.82 )      1.50        0.81        2.15        1.67        2.94  
       
       
       
       
       
       
       
  
Total from investment operations      2.56        0.16        2.44        1.86        2.67        2.69        3.95  
       
       
       
       
       
       
       
  
 
Distributions to shareholders from                                   
Net investment income      (0.41 )      (1.01 )      (0.93 )      (1.02 )      (0.52 )      (1.05 )      (1.08 )
Net realized gains      (0.01 )      (0.86 )      (2.13 )      (1.59 )      0        0        0  
       
       
       
       
       
       
       
  
Total distributions      (0.42 )      (1.87 )      (3.06 )      (2.61 )      (0.52 )      (1.05 )      (1.08 )
       
       
       
       
       
       
       
  
 
Net asset value, end of period      $    23.00        $    20.86        $    22.57        $  23.19        $  23.94        $  21.79        $  20.15  
       
       
       
       
       
       
       
  
Total return*      12.44 %      0.74 %      12.14 %      7.93 %      12.45 %      13.80 %      23.40 %
Ratios and supplemental data                                   
Net assets, end of period (thousands)      $  68,421        $  62,692        $  35,714        $15,005        $11,955        $  9,678        $  4,412  
Ratios to average net assets                                   
    Expenses‡      1.40 %†      1.49 %      1.46 %      1.50 %      1.45 %†      1.44 %      1.36 %
    Net investment income      3.81 %†      4.13 %      4.39 %      4.20 %      4.69 %†      4.93 %      5.39 %
Portfolio turnover rate      40 %      115 %      124 %      133 %      72 %      168 %      138 %
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended January 31,
       2000      1999 #      1998      1997 (a) #      1997      1996
 
CLASS B SHARES                                   
 
Net asset value, beginning of period      $    20.68        $    22.38        $    23.04        $  23.81        $  21.69        $  20.08        $  17.28  
       
       
       
       
       
       
       
  
Income from investment operations                                   
Net investment income      0.34        0.73        0.76        0.86        0.43        0.89        0.91  
Net realized and unrealized gains or
losses on securities and foreign
currency related transactions		      2.12        (0.73 )      1.51        0.81        2.15        1.64        2.87  
       
       
       
       
       
       
       
  
Total from investment operations      2.46        0.00        2.27        1.67        2.58        2.53        3.78  
       
       
       
       
       
       
       
  
 
Distributions to shareholders from                                   
Net investment income      (0.33 )      (0.84 )      (0.80 )      (0.85 )      (0.46 )      (0.92 )      (0.98 )
Net realized gains      (0.01 )      (0.86 )      (2.13 )      (1.59 )      0        0        0  
       
       
       
       
       
       
       
  
Total distributions      (0.34 )      (1.70 )      (2.93 )      (2.44 )      (0.46 )      (0.92 )      (0.98 )
       
       
       
       
       
       
       
  
 
Net asset value, end of period      $    22.80        $    20.68        $    22.38        $  23.04        $  23.81        $  21.69        $  20.08  
       
       
       
       
       
       
       
  
Total return*      12.01 %      0.00 %      11.34 %      7.13 %      12.06 %      13.00 %      22.40 %
Ratios and supplemental data                                   
Net assets, end of period (thousands)      $173,698        $177,968        $185,177        $54,544        $43,977        $35,323        $14,750  
Ratios to average net assets                                   
    Expenses‡      2.15 %†      2.24 %      2.21 %      2.25 %      2.20 %†      2.19 %      2.11 %
    Net investment income      3.06 %†      3.28 %      3.61 %      3.46 %      3.94 %†      4.17 %      4.69 %
Portfolio turnover rate      40 %      115 %      124 %      133 %      72 %      168 %      138 %
 
(a) 
For the six months ended July 31, 1997. The Fund changed its fiscal year end from January 31 to July 31, effective July 31, 1997.
*  
Excluding applicable sales charges.
†  
Annualized.
‡  
The ratio of expenses to average net assets excludes expense reductions but includes fee waivers.
#  
Net investment income is based on average shares outstanding during the period.
 
See Combined Notes to Financial Statements.
 
EVERGREEN
Equity Income Fund
Financial Highlights
(For a share outstanding throughout each period)
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended January 31,
       2000      1999 #      1998      1997 (a) #      1997      1996
 
 
 
CLASS C SHARES                                   
 
Net asset value, beginning of period      $  20.68        $22.38        $23.04        $23.81        $21.69        $20.08        $17.27  
       
       
       
       
       
       
       
  
Income from investment operations                                   
Net investment income      0.34        0.88        0.76        0.87        0.44        0.87        0.90  
Net realized and unrealized gains or losses on
securities and foreign currency related
transactions		      2.12        (0.88 )      1.51        0.80        2.14        1.66        2.89  
       
       
       
       
       
       
       
  
Total from investment operations      2.46        0.00        2.27        1.67        2.58        2.53        3.79  
       
       
       
       
       
       
       
  
 
Distributions to shareholders from                                   
Net investment income      (0.33 )      (0.84 )      (0.80 )      (0.85 )      (0.46 )      (0.92 )      (0.98 )
Net realized gains      (0.01 )      (0.86 )      (2.13 )      (1.59 )      0        0        0  
       
       
       
       
       
       
       
  
Total distributions      (0.34 )      (1.70 )      (2.93 )      (2.44 )      (0.46 )      (0.92 )      (0.98 )
       
       
       
       
       
       
       
  
 
Net asset value, end of period      $  22.80        $20.68        $22.38        $23.04        $23.81        $21.69        $20.08  
       
       
       
       
       
       
       
  
Total return*      12.01 %      0.00 %      11.34 %      7.13 %      12.06 %      12.90 %      22.40 %
Ratios and supplemental data                                   
Net assets, end of period (thousands)      $11,635        $9,112        $2,502        $1,259        $  950        $  982        $  523  
Ratios to average net assets                                   
    Expenses‡      2.15 %†      2.25 %      2.21 %      2.25 %      2.20  %†      2.19 %      2.11 %
    Net investment income      3.06 %†      3.43 %      3.60 %      3.48 %      4.06  %†      4.15 %      4.67 %
Portfolio turnover rate      40 %      115 %      124 %      133 %      72 %      168 %      138 %
 
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended January 31,
       2000      1999 #      1998      1997 (a) #      1997      1996
 
 
 
CLASS Y SHARES                                   
 
Net asset value, beginning of period      $  20.87        $22.58        $23.22        $23.98        $21.81        $20.16        $17.28  
       
       
       
       
       
       
       
  
Income from investment operations                                   
Net investment income      0.46        0.94        0.99        1.02        0.55        1.08        1.10  
Net realized and unrealized gains or losses on
securities and foreign currency related
transactions		      2.13        (0.72 )      1.52        0.89        2.16        1.66        2.87  
       
       
       
       
       
       
       
  
Total from investment operations      2.59        0.22        2.51        1.91        2.71        2.74        3.97  
       
       
       
       
       
       
       
  
 
Distributions to shareholders from                                   
Net investment income      (0.44 )      (1.07 )      (1.02 )      (1.08 )      (0.54 )      (1.09 )      (1.09 )
Net realized gains      (0.01 )      (0.86 )      (2.13 )      (1.59 )      0        0        0  
       
       
       
       
       
       
       
  
Total distributions      (0.45 )      (1.93 )      (3.15 )      (2.67 )      (0.54 )      (1.09 )      (1.09 )
       
       
       
       
       
       
       
  
 
Net asset value, end of period      $  23.01        $20.87        $22.58        $23.22        $23.98        $21.81        $20.16  
       
       
       
       
       
       
       
  
Total return      12.58 %      1.00 %      12.46 %      8.16 %      12.65 %      14.10 %      23.50 %
Ratios and supplemental data                                   
Net assets, end of period (millions)      $    762        $  733        $  847        $  880        $  900        $  858        $  914  
Ratios to average net assets                                   
    Expenses‡      1.15 %†      1.23 %      1.21 %      1.25 %      1.20  %†      1.18 %      1.19 %
    Net investment income      4.06 %†      4.29 %      4.61 %      4.46 %      4.97  %†      5.14 %      5.70 %
Portfolio turnover rate      40 %      115 %      124 %      133 %      72 %      168 %      138 %
 
(a) 
For the six months ended July 31, 1997. The Fund changed its fiscal year end from January 31 to July 31, effective July 31, 1997.
*  
Excluding applicable sales charges.
†  
Annualized.
‡  
The ratio of expenses to average net assets excludes expense reductions but includes fee waivers.
#  
Net investment income is based on average shares outstanding during the period.
 
See Combined Notes to Financial Statements.
 
EVERGREEN
Growth and Income Fund
Financial Highlights
(For a share outstanding throughout each period)
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended December 31,
       2000      1999      1998      1997 (b)      1996      1995 (a)
 
CLASS A SHARES
 
Net asset value, beginning of period      $30.72        $29.56        $29.14        $27.26        $22.53        $18.63        $14.48  
       
       
       
       
       
       
       
  
Income from investment operations                                   
Net investment income (loss)      (0.05 )      (0.09 )      0.10        0.16        0.08        0.12        0.13  
Net realized and unrealized gains on securities
and foreign currency related transactions		      0.11        1.85        1.16        2.86        4.72        4.26        4.64  
       
       
       
       
       
       
       
  
Total from investment operations      0.06        1.76        1.26        3.02        4.80        4.38        4.77  
       
       
       
       
       
       
       
  
 
Distributions to shareholders from                                   
Net investment income      0        0        (0.06 )      (0.13 )      (0.07 )      (0.13 )      (0.14 )
Net realized gains      (3.63 )      (0.60 )      (0.78 )      (1.01 )      0        (0.35 )      (0.48 )
       
       
       
       
       
       
       
  
Total distributions      (3.63 )      (0.60 )      (0.84 )      (1.14 )      (0.07 )      (0.48 )      (0.62 )
       
       
       
       
       
       
       
  
 
Net asset value, end of period      $27.15        $30.72        $29.56        $29.14        $27.26        $22.53        $18.63  
       
       
       
       
       
       
       
  
Total return*      0.62 %      6.01 %      4.48 %      11.26 %      21.33 %      23.50 %      33.00 %
Ratios and supplemental data                                   
Net assets, end of period (millions)      $  182        $  207        $  250        $  296        $  166        $    85        $    19  
Ratios to average net assets                                   
    Expenses‡      1.50 %†      1.47 %      1.43 %      1.46 %      1.47 %†      1.41 %      1.55 %†
    Net investment income (loss)      (0.33 %)†      (0.28 %)      0.33 %      0.61 %      0.57 %†      0.70 %      0.99 %†
Portfolio turnover rate      14 %      61 %      39 %      20 %      6 %      14 %      17 %
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended December 31,
       2000      1999      1998      1997 (b)      1996      1995 (a)
 
CLASS B SHARES                              
 
Net asset value, beginning of period      $30.05        $29.14        $28.88        $27.10        $22.43        $18.59        $14.48  
       
       
       
       
       
       
       
  
Income from investment operations                                   
Net investment income (loss)      (0.14 )      (0.35 )      (0.14 )      (0.02 )      (0.02 )      0        0.05  
Net realized and unrealized gains on securities
and foreign currency related transactions		      0.08        1.86        1.18        2.81        4.69        4.20        4.61  
       
       
       
       
       
       
       
  
Total from investment operations      (0.06 )      1.51        1.04        2.79        4.67        4.20        4.66  
       
       
       
       
       
       
       
  
 
Distributions to shareholders from                                   
Net investment income      0        0        0        0        0        (0.01 )      (0.07 )
Net realized gains      (3.63 )      (0.60 )      (0.78 )      (1.01 )      0        (0.35 )      (0.48 )
       
       
       
       
       
       
       
  
Total distributions      (3.63 )      (0.60 )      (0.78 )      (1.01 )      0        (0.36 )      (0.55 )
       
       
       
       
       
       
       
  
 
Net asset value, end of period      $26.36        $30.05        $29.14        $28.88        $27.10        $22.43        $18.59  
       
       
       
       
       
       
       
  
Total return*      0.21 %      5.23 %      3.73 %      10.44 %      20.82 %      22.60 %      32.20 %
Ratios and supplemental data                                   
Net assets, end of period (millions)      $  636        $  706        $  891        $1,000        $  542        $  245        $    46  
Ratios to average net assets                                   
    Expenses‡      2.25 %†      2.22 %      2.18 %      2.21 %      2.25 %†      2.17 %      2.24 %†
    Net investment loss      (1.08 %)†      (1.03 %)      (0.43 %)      (0.14 %)      (0.19 %)†      (0.06 %)      0.30 %†
Portfolio turnover rate      14 %      61 %      39 %      20 %      6 %      14 %      17 %
 
(a)
For the period from January 3, 1995 (commencement of class operations) to December 31, 1995.
(b)
For the seven months ended July 31, 1997. The Fund changed its fiscal year end from December 31 to July 31, effective July 31, 1997.
*
Excluding applicable sales charges.
†
Annualized.
‡
The ratio of expenses to average net assets excludes expense reductions but includes fee waivers.
 
See Combined Notes to Financial Statements.
 
 
EVERGREEN
Growth and Income Fund
Financial Highlights
(For a share outstanding throughout each period)
 
     Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended December 31,
       2000      1999      1998      1997 (b)      1996      1995 (a)
 
 
CLASS C SHARES                                 
 
Net asset value, beginning of period    $30.05        $29.14        $28.89        $27.10        $22.43        $18.58        $14.48  
    
       
       
       
       
       
       
  
Income from investment operations                                 
Net investment income (loss)    (0.16 )      (0.36 )      (0.16 )      (0.02 )      (0.02 )      0        0.06  
Net realized and unrealized gains on securities and
foreign currency related transactions		    0.10        1.87        1.19        2.82        4.69        4.21        4.60  
    
       
       
       
       
       
       
  
Total from investment operations    (0.06 )      1.51        1.03        2.80        4.67        4.21        4.66  
    
       
       
       
       
       
       
  
 
Distributions to shareholders from                                 
Net investment income    0        0        0        0        0        (0.01 )      (0.08 )
Net realized gains    (3.63 )      (0.60 )      (0.78 )      (1.01 )      0        (0.35 )      (0.48 )
    
       
       
       
       
       
       
  
Total distributions    (3.63 )      (0.60 )      (0.78 )      (1.01 )      0        (0.36 )      (0.56 )
    
       
       
       
       
       
       
  
 
Net asset value, end of period    $26.36        $30.05        $29.14        $28.89        $27.10        $22.43        $18.58  
    
       
       
       
       
       
       
  
Total return*    0.21 %      5.23 %      3.69 %      10.47 %      20.82 %      22.60 %      32.20 %
Ratios and supplemental data                                 
Net assets, end of period (millions)    $    23        $    26        $    37        $    50        $    24        $    10        $    20  
Ratios to average net assets                                 
    Expenses‡    2.25 %†      2.21 %      2.18 %      2.21 %      2.25 %†      2.17 %      2.15 %†
    Net investment loss    (1.08 %)†      (1.02 %)      (0.42 %)      (0.13 %)      (0.19 %)†      (0.06 %)      0.35 %†
Portfolio turnover rate    14 %      61 %      39 %      20 %      6 %      14 %      17 %
 
     Six Months Ended
January 31, 2001
(Unaudited) #		      Year Ended July 31,
      Year Ended December 31,
       2000      1999      1998      1997 (b)      1996      1995
 
 
CLASS Y SHARES                                 
 
Net asset value, beginning of period    $30.90        $29.65        $29.19        $27.29        $22.55        $18.64        $14.52  
    
       
       
       
       
       
       
  
Income from investment operations                                 
Net investment income (loss)    0.02        (0.01 )      0.19        0.24        0.11        0.18        0.18  
Net realized and unrealized gains on securities and
foreign currency related transactions		    0.07        1.86        1.15        2.87        4.73        4.25        4.59  
    
       
       
       
       
       
       
  
Total from investment operations    0.09        1.85        1.34        3.11        4.84        4.43        4.77  
    
       
       
       
       
       
       
  
 
Distributions to shareholders from                                 
Net investment income    0        0        (0.10 )      (0.20 )      (0.10 )      (0.17 )      (0.17 )
Net realized gains    (3.63 )      (0.60 )      (0.78 )      (1.01 )      0        (0.35 )      (0.48 )
    
       
       
       
       
       
       
  
Total distributions    (3.63 )      (0.60 )      (0.88 )      (1.21 )      (0.10 )      (0.52 )      (0.65 )
    
       
       
       
       
       
       
  
 
Net asset value, end of period    $27.36        $30.90        $29.65        $29.19        $27.29        $22.55        $18.64  
    
       
       
       
       
       
       
  
Total return    0.72 %      6.30 %      4.75 %      11.56 %      21.52 %      23.80 %      32.90 %
Ratios and supplemental data                                 
Net assets, end of period (millions)    $  399        $  484        $  634        $  801        $  616        $  442        $  141  
Ratios to average net assets                                 
    Expenses‡    1.25 %†      1.22 %      1.18 %      1.20 %      1.21 %†      1.16 %      1.27 %
    Net investment income (loss)    (0.08 %)†      (0.03 %)      0.57 %      0.86 %      0.82 %†      0.93 %      1.11 %
Portfolio turnover rate    14 %      61 %      39 %      20 %      6 %      14 %      17 %
 
(a) 
For the period from January 3, 1995 (commencement of class operations) to December 31, 1995.
(b) 
For the seven months ended July 31, 1997. The Fund changed its fiscal year end from December 31 to July 31, effective July 31, 1997.
*   
Excluding applicable sales charges.
†   
Annualized.
‡   
The ratio of expenses to average net assets excludes expense reductions but includes fee waivers.
#   
Net investment income is based on average shares outstanding during the period.
 
See Combined Notes to Financial Statements.
 
 
EVERGREEN
Small Cap Value Fund
Financial Highlights
(For a share outstanding throughout each period)
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31
      Year Ended December 31,
       2000      1999      1998      1997 (b) #      1996      1995 (a)
 
CLASS A SHARES                              
 
Net asset value, beginning of period      $  15.40        $  15.57        $  15.75        $  15.69        $13.10        $11.57        $  9.64  
       
       
       
       
       
       
       
  
Income from investment operations                                   
Net investment income      0        0.05        0.26        0.29        0.14        0.34        0.34  
Net realized and unrealized gains or
losses on securities		      3.13        (0.18 )      0.04        0.24        2.59        2.13        2.45  
       
       
       
       
       
       
       
  
Total from investment operations      3.13        (0.13 )      0.30        0.53        2.73        2.47        2.79  
       
       
       
       
       
       
       
  
 
Distributions to shareholders from                                   
Net investment income      0        (0.04 )      (0.30 )      (0.28 )      (0.13 )      (0.34 )      (0.37 )
Net realized gains      0        0        (0.18 )      (0.19 )      (0.01 )      (0.60 )      (0.49 )
       
       
       
       
       
       
       
  
Total distributions      0        (0.04 )      (0.48 )      (0.47 )      (0.14 )      (0.94 )      (0.86 )
       
       
       
       
       
       
       
  
 
Net asset value, end of period      $  18.53        $  15.40        $  15.57        $  15.75        $15.69        $13.10        $11.57  
       
       
       
       
       
       
       
  
Total return*      20.32 %      (0.85 %)      2.17 %      3.24 %      20.99 %      22.00 %      29.50 %
Ratios and supplemental data                                   
Net assets, end of period (thousands)      $61,346        $48,166        $59,451        $54,142        $4,239        $  336        $  216  
Ratios to average net assets                                   
    Expenses‡      1.57 %†      1.76 %      1.67 %      1.68 %      1.71 %†      1.75 %      1.75 %†
    Net investment income      0.05 %†      0.41 %      1.85 %      1.95 %      1.88 %†      3.08 %      3.39 %†
Portfolio turnover rate      57 %      138 %      54 %      18 %      13 %      50 %      48 %
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31
      Year Ended December 31,
       2000      1999      1998      1997 (b) #      1996      1995 (a)
 
CLASS B SHARES                              
 
Net asset value, beginning of period      $  15.23        $  15.48        $    15.67        $    15.64        $13.09        $11.57        $  9.64  
       
       
       
       
       
       
       
  
Income from investment operations                                   
Net investment income (loss)      (0.06 )      (0.07 )      0.16        0.19        0.08        0.27        0.28  
Net realized and unrealized gains or
losses on securities		      3.08        (0.17 )      0.02        0.22        2.57        2.11        2.43  
       
       
       
       
       
       
       
  
Total from investment operations      3.02        (0.24 )      0.18        0.41        2.65        2.38        2.71  
       
       
       
       
       
       
       
  
 
Distributions to shareholders from                                   
Net investment income      0        (0.01 )      (0.19 )      (0.19 )      (0.09 )      (0.26 )      (0.29 )
Net realized gains      0        0        (0.18 )      (0.19 )      (0.01 )      (0.60 )      (0.49 )
       
       
       
       
       
       
       
  
Total distributions      0        (0.01 )      (0.37 )      (0.38 )      (0.10 )      (0.86 )      (0.78 )
       
       
       
       
       
       
       
  
 
Net asset value, end of period      $  18.25        $  15.23        $    15.48        $    15.67        $15.64        $13.09        $11.57  
       
       
       
       
       
       
       
  
Total return*      19.83 %      (1.55 %)      1.35 %      2.49 %      20.37 %      21.10 %      28.70 %
Ratios and supplemental data                                   
Net assets, end of period (thousands)      $79,331        $69,450        $110,809        $130,191        $9,462        $  692        $  266  
Ratios to average net assets                                   
    Expenses‡      2.31 %†      2.51 %      2.42 %      2.43 %      2.46 %†      2.50 %      2.50 %†
    Net investment income (loss)      (0.69 %)†      (0.32 %)      1.15 %      1.20 %      1.12 %†      2.39 %      2.67 %†
Portfolio turnover rate      57 %      138 %      54 %      18 %      13 %      50 %      48 %
 
(a) 
For the period from January 3, 1995 (commencement of class operations) to December 31, 1995.
(b) 
For the seven months ended July 31, 1997. The Fund changed its fiscal year end from December 31 to July 31, effective July 31, 1997.
*  
Excluding applicable sales charges.
†  
Annualized.
‡  
The ratio of expenses to average net assets excludes expense reductions but includes fee waivers.
#  
Net investment income is based on average shares outstanding during the period.
 
See Combined Notes to Financial Statements.
 
 
EVERGREEN
Small Cap Value Fund
Financial Highlights
(For a share outstanding throughout each period)
 
     Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended December 31,
       2000      1999      1998      1997 (b) #      1996      1995 (a)
 
CLASS C SHARES                                   
 
Net asset value, beginning of period      $  15.20        $  15.46        $  15.66        $  15.63        $  13.09        $11.56        $  9.74  
     
       
       
       
       
       
       
  
Income from investment operations                                   
Net investment income (loss)      (0.05 )      (0.08 )      0.16        0.19        0.10        0.28        0.28  
Net realized and unrealized gains or losses on
securities		      3.07        (0.17 )      0.01        0.22        2.54        2.10        2.33  
     
       
       
       
       
       
       
  
Total from investment operations      3.02        (0.25 )      0.17        0.41        2.64        2.38        2.61  
     
       
       
       
       
       
       
  
 
Distributions to shareholders from                                   
Net investment income      0        (0.01 )      (0.19 )      (0.19 )      (0.09 )      (0.25 )      (0.30 )
Net realized gains      0        0        (0.18 )      (0.19 )      (0.01 )      (0.60 )      (0.49 )
     
       
       
       
       
       
       
  
Total distributions      0        (0.01 )      (0.37 )      (0.38 )      (0.10 )      (0.85 )      (0.79 )
     
       
       
       
       
       
       
  
 
Net asset value, end of period      $  18.22        $  15.20        $  15.46        $  15.66        $  15.63        $13.09        $11.56  
     
       
       
       
       
       
       
  
Total return*      19.87 %      (1.62 %)      1.28 %      2.49 %      20.30 %      21.10 %      27.30 %
Ratios and supplemental data                                   
Net assets, end of period (thousands)      $15,252        $12,637        $22,842        $26,197        $  2,770        $    56        $    24  
Ratios to average net assets                                   
    Expenses‡      2.31 %†      2.50 %      2.42 %      2.43 %      2.45 %†      2.50 %      2.50 %†
    Net investment income (loss)      (0.69 %)†      (0.29 %)      1.15 %      1.20 %      1.20 %†      2.33 %      2.63 %†
Portfolio turnover rate      57 %      138 %      54 %      18 %      13 %      50 %      48 %
 
     Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended December 31,
       2000      1999      1998      1997 (b) #      1996      1995
 
CLASS Y SHARES                                   
 
Net asset value, beginning of period      $  15.43        $  15.57        $  15.77        $  15.71        $  13.12        $11.58        $  9.70  
     
       
       
       
       
       
       
  
Income from investment operations                                   
Net investment income      0.03        0.05        0.33        0.34        0.19        0.38        0.38  
Net realized and unrealized gains or losses on
securities		      3.13        (0.14 )      (0.02 )      0.24        2.56        2.13        2.38  
     
       
       
       
       
       
       
  
Total from investment operations      3.16        (0.09 )      0.31        0.58        2.75        2.51        2.76  
     
       
       
       
       
       
       
  
 
Distributions to shareholders from                                   
Net investment income      0        (0.05 )      (0.33 )      (0.33 )      (0.15 )      (0.37 )      (0.38 )
Net realized gains      0        0        (0.18 )      (0.19 )      (0.01 )      (0.60 )      (0.50 )
     
       
       
       
       
       
       
  
Total distributions      0        (0.05 )      (0.51 )      (0.52 )      (0.16 )      (0.97 )      (0.88 )
     
       
       
       
       
       
       
  
 
Net asset value, end of period      $  18.59        $  15.43        $  15.57        $  15.77        $  15.71        $13.12        $11.58  
     
       
       
       
       
       
       
  
Total return      20.48 %      (0.59 %)      2.31 %      3.57 %      21.09 %      22.40 %      29.10 %
Ratios and supplemental data                                   
Net assets, end of period (thousands)      $98,961        $92,921        $56,903        $96,556        $42,374        $8,592        $4,806  
Ratios to average net assets                                   
    Expenses‡      1.31 %†      1.50 %      1.42 %      1.39 %      1.39 %†      1.50 %      1.50 %
    Net investment income      0.32 %†      0.70 %      2.19 %      2.23 %      2.39 %†      3.36 %      3.56 %
Portfolio turnover rate      57 %      138 %      54 %      18 %      13 %      50 %      48 %
 
(a) 
For the period from January 24, 1995 (commencement of class operations) to December 31,1995.
(b) 
For the seven months ended July 31, 1997. The Fund changed its fiscal year end from December 31 to July 31, effective July 31, 1997.
*   
Excluding applicable sales charges.
†   
Annualized.
‡   
The ratio of expenses to average net assets excludes expense reductions but includes fee waivers.
#   
Net investment income is based on average shares outstanding during the period.
 
See Combined Notes to Financial Statements.
 
EVERGREEN
Small Cap Value Fund
Financial Highlights
(For a share outstanding throughout each period)
 
     Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended
July 31, 2000 (a)
 
CLASS IS SHARES          
 
Net asset value, beginning of period      $15.43        $15.61  
     
     
  
Income from investment operations          
Net investment income      0        0  
Net realized and unrealized gains or losses on securities      3.13        (0.18 )
     
     
  
Total from investment operations      3.13        (0.18 )
     
     
  
 
Net asset value, end of period      $18.56        $15.43  
     
     
  
Total return      20.29 %      (1.15 %)
Ratios and supplemental data          
Net assets, end of period (thousands)      $1,609        $1,355  
Ratios to average net assets          
    Expenses‡      1.56 %†      1.78 %†
    Net investment income (loss)      0.06 %†      (0.02 %)†
Portfolio turnover rate      57 %      138 %
 
(a) 
For the period from June 30, 2000 (commencement of class operations) to July 31, 2000.
†   
Annualized.
‡   
The ratio of expenses to average net assets excludes expense reductions but includes fee waivers.
 
See Combined Notes to Financial Statements.
 
 
EVERGREEN
Value Fund
Financial Highlights
(For a share outstanding throughout each period)
 
     Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended December 31,
       2000      1999      1998      1997 (a)      1996      1995
 
CLASS A SHARES                                 
 
Net asset value, beginning of period    $20.68        $24.86        $22.23        $24.64        $20.57        $20.45        $16.62  
    
       
       
       
       
       
       
  
Income from investment operations                                 
Net investment income    0.09        0.20        0.21        0.26        0.21        0.38        0.55  
Net realized and unrealized gains or losses on
securities		    1.72        (1.08 )      2.76        2.00        4.05        3.49        4.69  
    
       
       
       
       
       
       
  
Total from investment operations    1.81        (0.88 )      2.97        2.26        4.26        3.87        5.24  
    
       
       
       
       
       
       
  
 
Distributions to shareholders from                                 
Net investment income    (0.10 )      (0.19 )      (0.21 )      (0.29 )      (0.19 )      (0.41 )      (0.51 )
Net realized gains    (2.23 )      (3.11 )      (0.13 )      (4.38 )      0        (3.34 )      (0.90 )
    
       
       
       
       
       
       
  
Total distributions    (2.33 )      (3.30 )      (0.34 )      (4.67 )      (0.19 )      (3.75 )      (1.41 )
    
       
       
       
       
       
       
  
 
Net asset value, end of period    $20.16        $20.68        $24.86        $22.23        $24.64        $20.57        $20.45  
    
       
       
       
       
       
       
  
Total return*    9.51 %      (3.78 %)      13.48 %      9.55 %      20.78 %      18.90 %      31.80 %
Ratios and supplemental data                                 
Net assets, end of period (millions)    $  380        $  380        $  464        $  476        $  392        $  328        $  292  
Ratios to average net assets                                 
    Expenses‡    1.09 %†      1.03 %      1.00 %      1.01 %      0.92 %†      0.91 %      0.90 %
    Net investment income    0.87 %†      0.91 %      0.93 %      1.04 %      1.66 %†      1.77 %      2.78 %
Portfolio turnover rate    72 %      83 %      110 %      69 %      6 %      91 %      53 %
 
     Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended December 31,
       2000      1999      1998      1997 (a)      1996      1995
 
CLASS B SHARES                                 
 
Net asset value, beginning of period    $20.62        $24.81        $22.20        $24.63        $20.58        $20.45        $16.62  
    
       
       
       
       
       
       
  
Income from investment operations                                 
Net investment income    0.01        0.02        0.04        0.08        0.12        0.22        0.39  
Net realized and unrealized gains or losses on
securities		    1.71        (1.06 )      2.75        1.99        4.03        3.50        4.70  
    
       
       
       
       
       
       
  
Total from investment operations    1.72        (1.04 )      2.79        2.07        4.15        3.72        5.09  
    
       
       
       
       
       
       
  
 
Distributions to shareholders from                                 
Net investment income    (0.03 )      (0.04 )      (0.05 )      (0.12 )      (0.10 )      (0.25 )      (0.36 )
Net realized gains    (2.23 )      (3.11 )      (0.13 )      (4.38 )      0        (3.34 )      (0.90 )
    
       
       
       
       
       
       
  
Total distributions    (2.26 )      (3.15 )      (0.18 )      (4.50 )      (0.10 )      (3.59 )      (1.26 )
    
       
       
       
       
       
       
  
 
Net asset value, end of period    $20.08        $20.62        $24.81        $22.20        $24.63        $20.58        $20.45  
    
       
       
       
       
       
       
  
Total return*    9.09 %      (4.51 %)      12.65 %      8.73 %      20.23 %      18.10 %      30.90 %
Ratios and supplemental data                                 
Net assets, end of period (millions)    $  202        $  206        $  332        $  326        $  276        $  197        $  141  
Ratios to average net assets                                 
    Expenses‡    1.83 %†      1.78 %      1.75 %      1.76 %      1.67 %†      1.66 %      1.65 %
    Net investment income    0.13 %†      0.15 %      0.18 %      0.30 %      0.92 %†      1.01 %      2.04 %
Portfolio turnover rate    72 %      83 %      110 %      69 %      6 %      91 %      53 %
 
(a) 
For the seven months ended July 31, 1997. The Fund changed its fiscal year end from December 31 to July 31, effective July 31, 1997.
*   
Excluding applicable sales charges.
†   
Annualized.
‡   
The ratio of expenses to average net assets excludes expense reductions but includes fee waivers.
 
See Combined Notes to Financial Statements.
 
EVERGREEN
Value Fund
Financial Highlights
(For a share outstanding throughout each period)
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended December 31,
       2000      1999      1998      1997 (a)      1996      1995
 
CLASS C SHARES
 
Net asset value, beginning of period      $20.60        $24.79        $22.18        $24.61        $20.56        $20.44        $16.61  
       
       
       
       
       
       
       
  
Income from investment operations
Net investment income      0.03        0.03        0.04        0.10        0.12        0.22        0.39  
Net realized and unrealized gains or losses on
securities		      1.70        (1.07 )      2.75        1.97        4.03        3.50        4.70  
       
       
       
       
       
       
       
  
Total from investment operations      1.73        (1.04 )      2.79        2.07        4.15        3.72        5.09  
       
       
       
       
       
       
       
  
 
Distributions to shareholders from
Net investment income      (0.03 )      (0.04 )      (0.05 )      (0.12 )      (0.10 )      (0.26 )      (0.36 )
From net realized gains      (2.23 )      (3.11 )      (0.13 )      (4.38 )      0        (3.34 )      (0.90 )
       
       
       
       
       
       
       
  
Total distributions      (2.26 )      (3.15 )      (0.18 )      (4.50 )      (0.10 )      (3.60 )      (1.26 )
       
       
       
       
       
       
       
  
 
Net asset value, end of period      $20.07        $20.60        $24.79        $22.18        $24.61        $20.56        $20.44  
       
       
       
       
       
       
       
  
Total return*      9.13 %      (4.52 %)      12.66 %      8.74 %      20.25 %      18.10 %      30.90 %
Ratios and supplemental data
Net assets, end of period (millions)      $      5        $      4        $      5        $      5        $      3        $      1        $                  1  
Ratios to average net assets
    Expenses‡      1.84 %†      1.77 %      1.75 %      1.76 %      1.66 %†      1.67 %      1.65 %
    Net investment income      0.09 %†      0.15 %      0.18 %      0.29 %      0.94 %†      1.00 %      2.03 %
Portfolio turnover rate      72 %      83 %      110 %      69 %      6 %      91 %      53 %
 
       Six Months Ended
January 31, 2001
(Unaudited)		      Year Ended July 31,
      Year Ended December 31,
       2000      1999      1998      1997 (a)      1996      1995
 
CLASS Y SHARES
 
Net asset value, beginning of period      $20.68        $24.87        $22.23        $24.64        $20.57        $20.45        $16.61  
       
       
       
       
       
       
       
  
Income from investment operations
Net investment income      0.14        0.31        0.29        0.35        0.25        0.44        0.57  
Net realized and unrealized gains or losses on
securities		      1.70        (1.14 )      2.74        1.97        4.03        3.49        4.72  
       
       
       
       
       
       
       
  
Total from investment operations      1.84        (0.83 )      3.03        2.32        4.28        3.93        5.29  
       
       
       
       
       
       
       
  
 
Distributions to shareholders from
Net investment income      (0.12 )      (0.25 )      (0.26 )      (0.35 )      (0.21 )      (0.47 )      (0.55 )
Net realized gains      (2.23 )      (3.11 )      (0.13 )      (4.38 )      0.00        (3.34 )      (0.90 )
       
       
       
       
       
       
       
  
Total distributions      (2.35 )      (3.36 )      (0.39 )      (4.73 )      (0.21 )      (3.81 )      (1.45 )
       
       
       
       
       
       
       
  
 
Net asset value, end of period      $20.17        $20.68        $24.87        $22.23        $24.64        $20.57        $20.45  
       
       
       
       
       
       
       
  
Total return      9.69 %      (3.59 %)      13.81 %      9.79 %      20.93 %      19.20 %      32.20 %
Ratios and supplemental data
Net assets, end of period (millions)      $    48        $    57        $  132        $  183        $1,149        $  996        $  761  
Ratios to average net assets
    Expenses‡      0.83 %†      0.77 %      0.75 %      0.70 %      0.67 %†      0.66 %      0.65 %
    Net investment income      1.15 %†      1.16 %      1.20 %      1.47 %      1.91 %†      2.02 %      3.02 %
Portfolio turnover rate      72 %      83 %      110 %      69 %      6 %      91 %      53 %
 
(a)
For the seven months ended July 31, 1997. The Fund changed its fiscal year end from December 31 to July 31, effective July 31, 1997.
*
Excluding applicable sales charges.
†
Annualized.
‡
The ratio of expenses to average net assets excludes expense reductions but includes fee waivers.
 
See Combined Notes to Financial Statements.
 
EVERGREEN
Blue Chip Fund
Schedule of Investments
January 31, 2001 (Unaudited)
 
         
 
       Shares      Value
                      
 
COMMON STOCKS – 92.6%          
 
CONSUMER DISCRETIONARY – 10.9%          
 
Auto Components – 0.4%              
          Genuine Parts Co.      133,900      $      3,395,704
               
 
Automobiles – 0.5%              
          General Motors Corp.      90,450      4,857,165
               
 
Hotels, Restaurants & Leisure – 0.6%              
          Brinker International, Inc. *      203,100      5,272,476
               
 
Media – 4.5%              
          AOL Time Warner, Inc. *      348,350      18,309,276
          Clear Channel Communications, Inc. *      84,750      5,526,547
          Comcast Corp., Class A *      106,600      4,563,813
          Interpublic Group of Companies, Inc.      99,050      4,080,860
          Viacom, Inc., Class B *      133,215      7,353,468
               
                    39,833,964
               
 
Multi-line Retail – 3.9%              
          Costco Wholesale Corp. *      94,300      4,361,375
          Target Corp.      197,350      7,495,353
          Wal-Mart Stores, Inc.      400,300      22,737,040
               
                    34,593,768
               
 
Specialty Retail – 0.6%              
          Home Depot, Inc.      120,600      5,812,920
               
 
Textiles & Apparel – 0.4%          
          Jones Apparel Group, Inc. *p      93,450      3,737,066
               
 
CONSUMER STAPLES – 3.8%              
 
Beverages – 1.6%              
          Anheuser Busch Companies, Inc.       128,600      5,576,096
          Pepsico, Inc.      190,050      8,375,503
               
                    13,951,599
               
 
Food & Drug Retailing – 0.7%              
          Safeway, Inc. *      117,150      5,935,991
               
Household Products – 0.5%              
          Procter & Gamble Co.      68,073      4,890,364
               
 
Personal Products – 1.0%              
          Avon Products, Inc.       75,450      3,191,535
          Colgate-Palmolive Co.       96,400      5,791,712
               
                    8,983,247
               
 
ENERGY – 7.0%              
Energy Equipment & Services – 1.6%              
          Nabors Industries, Inc. *      176,800      10,432,968
          Schlumberger, Ltd.      54,350      4,174,080
               
                    14,607,048
               
 
29
 
EVERGREEN
Blue Chip Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
         
 
       Shares      Value
                      
 
COMMON STOCKS – continued          
 
ENERGY – continued          
Oil & Gas – 5.4%          
          Apache Corp.       67,050      $      3,862,080
          BP Amoco Plc, ADR      123,664      6,368,696
          Exxon Mobil Corp.      250,834      21,107,681
          Kerr-McGee Corp.      102,600      6,634,116
          Royal Dutch Petroleum Co.       164,500      9,927,575
               
                              47,900,148
               
 
FINANCIALS – 16.6%          
 
Banks – 5.4%          
          Bank of New York Co., Inc.      103,450      5,661,818
          FleetBoston Financial Corp.      160,550      6,958,237
          Mellon Financial Corp.      89,900      4,189,340
          PNC Financial Services Group      150,200      11,117,804
          Suntrust Banks, Inc.      65,800      4,402,020
          Wachovia Corp.      74,750      5,079,263
          Wells Fargo & Co.      207,600      10,693,476
               
                              48,101,958
               
 
Diversified Financials – 7.1%          
          American Express Co.      72,400      3,410,040
          Citigroup, Inc.      399,516      22,360,911
          Freddie Mac      176,550      10,769,550
          J.P. Morgan Chase & Co.      108,280      5,954,317
          Merrill Lynch & Co., Inc.      97,500      7,068,750
          Morgan Stanley Dean Witter & Co.      82,450      6,987,637
          Providian Financial Corp.      115,550      6,742,342
               
            63,293,547
               
 
Insurance – 4.1%          
          Ace, Ltd. p      74,700      2,763,900
          American International Group, Inc.      145,212      12,345,924
          Chubb Corp.      73,750      5,310,000
          CIGNA Corp.      57,850      6,430,028
          MetLife, Inc. p      88,600      2,907,852
          XL Capital, Ltd., Class A      90,100      6,683,618
               
                              36,441,322
               
 
HEALTH CARE – 13.7%          
 
Biotechnology – 1.1%          
          Amgen, Inc*.       43,950      3,090,234
          Biogen, Inc.*      50,650      3,266,925
          Genzyme Corp.* p      33,950      2,938,797
               
                              9,295,956
               
 
30
EVERGREEN
Blue Chip Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
         
 
       Shares      Value
                      
 
COMMON STOCKS – continued          
 
HEALTH CARE – continued          
 
Health Care Equipment & Supplies – 1.5%          
          Medtronic, Inc.       160,700      $      8,677,800
          Stryker Corp.       101,550      4,590,060
               
                              13,267,860
               
 
Health Care Providers & Services – 2.2%          
          Cardinal Health, Inc.      89,050      8,486,465
          First Health Group Corp. *      95,900      4,015,813
          Tenet Healthcare Corp. *      169,800      7,406,676
               
             19,908,954
               
Pharmaceuticals – 8.9%          
          American Home Products Corp.       155,500      9,190,050
          Bristol-Myers Squibb Co.       153,900      9,524,871
          Johnson & Johnson      143,250      13,340,873
          Merck & Co., Inc.       157,200      12,918,696
          Pfizer, Inc.       410,550      18,536,332
          Pharmacia Corp.       159,708      8,946,842
          Schering-Plough Corp.       143,900      7,252,560
               
                              79,710,224
               
 
INDUSTRIALS – 11.9%          
 
Aerospace & Defense – 1.0%          
          United Technologies Corp.       114,900      8,615,202
               
 
Air Freight & Couriers – 0.5%          
          United Parcel Service, Inc., Class B      78,400      4,852,960
               
 
Building Products – 0.4%          
          Masco Corp.      164,800      3,955,200
               
 
Commercial Services & Supplies – 3.1%          
          Automatic Data Processing, Inc.       45,650      2,732,609
          Devry, Inc. *       162,200      5,526,154
          First Data Corp.       161,800      9,839,058
          McGraw-Hill Co., Inc.       73,750      4,708,938
          Republic Services, Inc., Class A *      332,700      4,574,625
               
                              27,381,384
               
 
Industrial Conglomerates – 6.2%          
          General Electric Co.       714,500      32,867,000
          Minnesota Mining & Manufacturing Co.       61,400      6,793,910
          Tyco International, Ltd.       248,950      15,335,320
               
                              54,996,230
               
 
Machinery – 0.7%          
          Caterpillar, Inc.       93,950      4,154,469
          Deere & Co.       48,850      2,096,642
               
                              6,251,111
               
 
31
EVERGREEN
Blue Chip Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
         
 
       Shares      Value
                      
 
COMMON STOCKS – continued          
 
INFORMATION TECHNOLOGY – 21.0%          
 
Communications Equipment – 3.3%          
          CIENA Corp. *      58,150      $      5,237,134
          Cisco Systems, Inc. *      416,600      15,596,462
          Comverse Technology, Inc. *p      26,000      2,946,125
          Nortel Networks Corp.      141,650      5,415,280
               
                              29,195,001
               
 
Computers & Peripherals – 6.4%          
          Dell Computer Corp. *      173,250      4,526,156
          EMC Corp. *      164,845      12,526,571
          Hewlett-Packard Co.      193,100      7,094,494
          International Business Machines Corp.      150,600      16,867,200
          Lexmark International Group, Inc., Class A *      90,600      5,209,500
          Palm, Inc. *      160,400      4,350,850
          Sun Microsystems, Inc. *      213,100      6,512,869
               
            57,087,640
               
 
Electronic Equipment & Instruments – 0.7%          
          Sanmina Corp. *      117,600      5,718,300
               
 
Internet Software & Services – 0.6%          
          Check Point Software Technologies, Ltd. *      36,600      5,581,500
               
 
Semiconductor Equipment & Products – 5.4%          
          Altera Corp. *      44,525      1,346,881
          Analog Devices, Inc. *      83,100      5,202,060
          Applied Materials, Inc. *      55,750      2,804,922
          Intel Corp.       384,800      14,237,600
          Lam Research Corp. *p      146,800      3,881,025
          Micron Technology, Inc. *      128,650      5,888,311
          Novellus Systems, Inc. *      108,200      5,234,175
          Teradyne, Inc. *      66,850      2,929,367
          Texas Instruments, Inc.      155,600      6,815,280
               
            48,339,621
               
 
Software – 4.6%          
          Microsoft Corp. *      393,850      24,049,465
          Oracle Corp. *      352,150      10,256,369
          Parametric Technology Corp. *      188,650      2,806,169
          Veritas Software Corp. *      42,450      4,027,444
               
            41,139,447
               
 
MATERIALS – 2.0%          
 
Chemicals – 1.2%          
          Dow Chemical Co.       139,300      4,777,990
          Ecolab, Inc.      152,900      6,352,995
               
            11,130,985
               
 
32
EVERGREEN
Blue Chip Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
     Shares    Value
 
COMMON STOCKS – continued
 
MATERIALS – continued
 
Paper & Forest Products – 0.8%
          International Paper Co.    114,050    $    4,408,033  
          Weyerhaeuser Co.    46,200    2,425,500  
           
  
        6,833,533  
           
  
 
TELECOMMUNICATION SERVICES – 4.7%
 
Diversified Telecommunication Services – 4.7%
          Allegiance Telecom, Inc. *    76,200    2,533,650  
          AT&T Corp.     222,654    5,341,469  
          Qwest Communications International, Inc. *    142,500    6,002,100  
          SBC Communications, Inc.    258,650    12,505,727  
          Tycom, Ltd. *    81,000    2,292,300  
          Verizon Communications    150,250    8,256,238  
          WorldCom, Inc. *    211,200    4,554,000  
           
  
        41,485,484  
           
  
 
UTILITIES – 1.0%
Electric Utilities – 1.0%
          Dominion Resources, Inc.    124,200    7,675,560  
          Duke Energy Corp.     41,400    1,513,998  
           
  
        9,189,558  
           
  
                    Total Common Stocks (cost $753,035,529)            825,544,437  
           
  
SHORT-TERM INVESTMENTS – 8.1%
MUTUAL FUND SHARES – 8.1%
          Evergreen Select Money Market Fund ø    60,889,381    60,889,381  
          Navigator Prime Portfolio pp    11,524,372    11,524,372  
           
  
                    Total Short-Term Investments (cost $72,413,753)    72,413,753  
           
  
Total Investments – (cost $825,449,282) – 100.7%    897,958,190  
Other Assets and Liabilities – (0.7%)    (6,390,848 )
           
  
Net Assets – 100.0%    $891,567,342  
           
    
 
See Combined Notes to Schedules of Investments.
 
EVERGREEN
Equity Income Fund
Schedule of Investments
January 31, 2001 (Unaudited)
 
 
       Shares      Value
 
COMMON STOCKS – 53.3%                           
 
CONSUMER DISCRETIONARY – 11.2%
Auto Components – 0.6%
          Dana Corp. p      300,000      $         5,604,000
               
Automobiles – 1.1%
          Ford Motor Co.      382,500      10,782,675
          General Motors Corp.      10,530      565,461
               
            11,348,136
               
 
Hotels, Restaurants & Leisure – 0.5%
          Carnival Corp., Class A      75,000      2,419,500
          Royal Caribbean Cruises, Ltd.       100,000      2,618,000
               
            5,037,500
               
 
Household Durables – 2.4%
          Leggett & Platt, Inc.      231,000      4,851,000
          Maytag Corp.       203,300      7,115,500
          Newell Rubbermaid, Inc.      224,415      6,104,088
          Whirlpool Corp. p      125,000      6,561,250
               
            24,631,838
               
 
Media – 1.2%
          AOL Time Warner, Inc. *      228,086      11,988,174
               
 
Multi-line Retail – 2.7%
          J.C. Penney Co., Inc.       800,000      11,176,000
          May Department Stores Co.      250,000      9,737,500
          Target Corp.      180,000      6,836,400
               
            27,749,900
               
 
Specialty Retail – 2.1%
          Intimate Brands, Inc., Class A      337,500      6,412,500
          RadioShack Corp.      100,000      5,504,000
          Tiffany & Co.      240,000      8,995,200
               
            20,911,700
               
 
Textiles & Apparel – 0.6%
          V.F. Corp.      186,000      6,483,960
               
 
CONSUMER STAPLES – 1.0%
 
Household Products – 0.9%
          The Estee Lauder Companies, Inc. p      120,000      8,901,600
               
Personal Products – 0.1%
          Kimberly-Clark Corp.      20,000      1,295,000
               
 
ENERGY – 2.7%
 
Oil & Gas – 2.7%
          BP Amoco Plc, ADR      47,092      2,425,238
          Conoco, Inc., Class B      148,637      4,191,563
 
34
EVERGREEN
Equity Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                        
 
COMMON STOCKS – continued              
 
 
ENERGY – continued
 
Oil & Gas – continued
          Exxon Mobil Corp.      36,000      $3,029,400
          Murphy Oil Corp.      200,000      11,588,000
          Texaco, Inc.      110,700      6,796,980
         
            28,031,181
         
FINANCIALS – 17.8%
 
Banks – 9.5%
          Amcore Financial, Inc.      221,500      4,388,469
          Associated Banc Corp.      40,000      1,360,000
          Astoria Financial Corp.      155,000      8,089,062
          Banknorth Group, Inc.      310,430      6,150,394
          CB Bancshares, Inc.      100,000      3,250,000
          Comerica, Inc.      86,500      5,215,950
          Commerce Bancshares, Inc.      137,812      5,641,679
          First Essex Bancorp, Inc.      282,000      5,922,000
          First Union Corp. °      8,000      271,440
          FleetBoston Financial Corp.      56,000      2,427,040
          KeyCorp.      148,000      3,945,680
          National City Corp.      225,000      6,356,250
          National Commerce Bancorp      241,815      6,347,644
          North Fork Bancorp, Inc.      430,000      10,526,400
          PNC Financial Services Group      20,000      1,480,400
          SouthTrust Corp.      140,000      6,212,500
          Suntrust Banks, Inc.      62,000      4,147,800
          Susquehanna Bancshares, Inc.      138,375      2,335,078
          Three Rivers Bancorp, Inc.      160,980      1,428,698
          U.S. Bancorp      150,000      4,432,500
          Wells Fargo & Co.      71,000      3,657,210
          Wilmington Trust Corp.       50,000      2,963,000
         
            96,549,194
         
 
Diversified Financials – 0.2%
          T. Rowe Price Group, Inc.      56,600      2,207,400
         
 
Insurance – 3.1%
          Aon Corp.      11,800      414,770
          Lincoln National Corp.      50,000      2,242,500
          Old Republic International Corp.      155,000      4,259,400
          Partnerre, Ltd.      84,500      4,143,880
          Saint Paul Companies, Inc.      169,500      8,139,390
          XL Capital, Ltd., Class A      170,000      12,610,600
         
            31,810,540
         
 
Real Estate – 5.0%
          AMB Property Corp. REIT p      100,000      2,465,000
          Arden Realty Group, Inc. REIT      100,000      2,400,000
 
35
EVERGREEN
Equity Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
 
COMMON STOCKS – continued
 
FINANCIALS – continued
 
Real Estate – continued
          Boston Properties, Inc. REIT      27,000      $        1,096,200
          Equity Office Properties Trust REIT      40,000      1,220,000
          Equity Residential Properties Trust REIT      147,900      7,747,002
          First Indl. Realty Trust, Inc. REIT      134,000      4,401,900
          Gables Residential Trust REIT      419,700        11,650,872
          Kilroy Realty Corp. REIT      100,000      2,660,000
          Macerich Co. (The) REIT      50,000      1,040,500
          Post Property, Inc. REIT      235,700      9,013,168
          Public Storage, Inc. REIT      30,500      793,000
          Simon Property Group, Inc. REIT      135,000      3,554,550
          Spieker Properties, Inc. REIT      20,000      1,072,000
          Taubman Centers, Inc. REIT      100,000      1,120,000
               
            50,234,192
               
 
HEALTH CARE – 5.0%
 
Pharmaceuticals – 5.0%
          Abbott Laboratories      240,000      10,766,400
          American Home Products Corp.      325,000      19,207,500
          Bristol-Myers Squibb Co.      180,000      11,140,200
          Johnson & Johnson      60,000      5,587,800
          Merck & Co., Inc.      36,000      2,958,480
          Pharmacia Corp.      18,000      1,008,360
               
                50,668,740
               
 
INDUSTRIALS – 4.5%
 
Aerospace & Defense – 0.4%
          General Dynamics Corp.      56,500      4,010,370
               
 
Airlines – 1.2%
          Qantas Airways, Ltd.      5,463,490      11,771,755
               
 
Building Products – 0.5%
          Masco Corp.      220,000      5,280,000
               
 
Commercial Services & Supplies – 0.4%
          BARRA, Inc. *      30,000      1,473,750
          Electronic Data Systems Corp.      55,000      3,060,750
               
            4,534,500
               
 
Electrical Equipment – 0.6%
          Hubbell, Inc., Class B      200,000      5,726,000
               
 
Industrial Conglomerates – 0.5%
          General Electric Co.      60,000      2,760,000
          Honeywell International, Inc.      50,000      2,362,500
               
            5,122,500
               
 
36
EVERGREEN
Equity Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
 
COMMON STOCKS – continued
 
INDUSTRIALS – continued
 
Machinery – 0.9%
          Caterpillar, Inc.      160,000      $        7,075,200
          CNH Global N.V.       225,000      2,081,250
               
            9,156,450
               
 
INFORMATION TECHNOLOGY – 3.0%
Communications Equipment – 2.3%
          Lucent Technologies, Inc.      215,000      3,999,000
          Nokia Corp., ADR      100,000      3,435,000
          QUALCOMM, Inc. *      190,000          15,971,875
               
            23,405,875
               
 
Computers & Peripherals – 0.2%
          International Business Machines Corp.      22,000      2,464,000
               
 
Software – 0.5%
          Microsoft Corp. *      75,000      4,579,687
               
 
MATERIALS – 1.4%
 
Chemicals – 0.5%
          PPG Industries, Inc.       100,000      4,618,000
               
 
Metals & Mining – 0.7%          
          Phelps Dodge Corp.       158,800      7,368,320
               
 
Paper & Forest Products – 0.2%          
          Bowater, Inc.       48,300      2,547,825
               
 
TELECOMMUNICATION SERVICES – 2.5%          
 
Diversified Telecommunication Services – 2.5%          
          AT&T Corp.       25,000      599,750
          SBC Communications, Inc.       142,000      6,865,700
          Verizon Communications      323,300      17,765,335
               
                              25,230,785
               
 
UTILITIES – 4.2%          
 
Electric Utilities – 1.0%          
          Consolidated Edison, Inc.       200,000      6,988,000
          Constellation Energy Group, Inc.       31,000      1,230,390
          Duke Energy Corp.       46,000      1,682,220
               
                              9,900,610
               
 
Gas Utilities – 3.2%          
          Peoples Energy Corp.       229,500      8,431,830
          Sempra Energy      420,000      8,555,400
          Williams Companies, Inc.       400,000      15,652,000
               
                              32,639,230
               
                    Total Common Stocks (cost $444,926,991)                541,808,962
               
 
37
EVERGREEN
Equity Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
 
 
CONVERTIBLE PREFERRED STOCKS – 25.7%          
 
CONSUMER DISCRETIONARY – 4.2%          
 
Household Durables – 0.4%          
          Newell Financial Trust I, 5.25%, 12/01/2027 144A p      100,000      $        3,737,500
               
 
Leisure Equipment & Products – 0.8%          
          Tribune Co. (exchangeable for Mattel, Inc. Common Stock), 6.25%,
               08/15/2001		      460,000      8,174,200
               
 
Media – 1.8%          
          Emmis Communications Corp., 6.25%, 12/31/2049      215,000          11,643,594
          Seagram, Ltd., 7.50%, 06/21/2002      110,000      6,586,250
               
                              18,229,844
               
 
Multi-line Retail – 1.2%          
          Merrill Lynch & Co., Inc. (exchangeable for Dollar General Corp. Common
               Stock), 8.50%, 5/15/2001		      355,000      12,425,000
               
 
ENERGY – 0.9%          
 
Energy Equipment & Services – 0.6%          
          Weatherford International, Inc., 5.00%, 11/01/2027      110,000      5,678,750
               
 
Oil & Gas – 0.3%          
          Callon Petroleum Co., Ser. A, 8.50%, 12/31/2049 p      95,000      3,111,250
               
 
FINANCIALS – 1.0%          
 
Insurance – 0.5%          
          Lincoln National Corp., 7.75%, 08/16/2001 PRIDES      220,000      5,225,000
         
 
Real Estate – 0.5%
          General Growth Properties, Inc., 7.25%, 07/15/2008      200,000      5,000,000
         
 
HEALTH CARE – 0.7%
 
Pharmaceuticals – 0.7%
          Pharmacia Corp., 6.50%, 11/30/2001 ACES      150,000      7,251,000
         
 
INDUSTRIALS – 2.8%
 
Air Freight & Couriers – 0.5%
          CNF Trust I, Ser. A, 5.00%, 06/01/2012, TECONS (exchangeable for CNF
               Transportation, Inc. Common Stock)		      100,000      4,900,000
         
 
Airlines – 0.8%
          Continental Airlines Financial Trust, 6.00%, 11/15/2030 144A      160,000      8,280,000
         
 
Machinery – 0.4%
          Ingersoll-Rand Co., 6.75%, 05/16/2011 PRIDES      200,000      4,580,000
         
 
Transportation Infrastructure – 1.1%
          Union Pacific Capital Trust, 6.25%, 4/01/2028 p      216,800      10,894,200
         
 
38
EVERGREEN
Equity Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
 
CONVERTIBLE PREFERRED STOCKS – continued
 
 
INFORMATION TECHNOLOGY – 1.9%
 
Communications Equipment – 1.7%
          Crown Castle, DECS Trust V 7.25%, 08/15/2002      320,000      $        8,640,000
          Metromedia Fiber, DECS Trust VI 6.25%, 11/15/2002      280,000      8,820,000
               
                              17,460,000
               
 
Internet Software & Services – 0.2%
          Akamai Technologies, Inc., 5.50%, 07/01/2007 144A      4,000,000      2,170,000
               
 
MATERIALS – 0.5%
 
Containers & Packaging – 0.3%
          Sealed Air Corp., Ser. A, $2.00, 04/01/2018 p      100,000      3,325,000
               
 
Paper & Forest Products – 0.2%
          International Paper Capital Trust, 5.25%, 07/20/2025 p      30,000      1,357,500
               
 
TELECOMMUNICATION SERVICES – 4.3%
 
Diversified Telecommunication Services – 3.3%
          Global Crossing Ltd., 6.75%, 04/15/2012      65,000      12,634,375
          Qwest Trends Trust, 5.75%, 11/17/2003 144A      300,000      21,037,500
               
                              33,671,875
               
 
Wireless Telecommunications Services – 1.0%
          MediaOne Group, Inc., 7.00% 11/15/2002 PIES      218,700      7,873,200
          Mirant Trust I, 6.25%, 10/01/2030      41,700      2,406,090
               
                              10,279,290
               
 
UTILITIES – 9.4%
 
Electric Utilities – 8.6%
          AES Trust III, 6.75%, 10/15/2029      160,000      13,822,400
          Calpine Capital Trust III, 5.00%, 08/01/2005 144A      130,000      7,572,500
          CMS Energy Corp., 8.75%, 07/01/2002 p      438,000      14,589,780
          Dominion Resources, Inc., 9.50%, 11/16/2004 PIES      175,000      10,720,500
          Nisource, Inc., 7.75%, 02/19/2003 PIES p      177,800      8,721,090
          TXU Corp., 9.25%, 08/16/2002 PRIDES      283,600      12,563,480
          Utilicorp United, Inc., 9.75%, 11/16/2002      600,000      18,720,000
               
                              86,709,750
               
 
Gas Utilities – 0.8%          
          Coastal Corp., 6.625%, 08/16/2002 PRIDES      200,000      8,410,000
               
                    Total Convertible Preferred Stocks (cost $248,359,378)                   260,870,159
               
 
39
 
EVERGREEN
Equity Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Principal
Amount		      Value
 
CONVERTIBLE DEBENTURES – 13.2%                         
 
CONSUMER DISCRETIONARY – 4.0%          
 
Leisure Equipment & Products – 0.9%          
          Charter Communications, Inc., 5.75%, 10/15/2005 144A      $ 7,000,000      $          8,706,250
               
 
Media – 3.1%          
          Echostar Communications Corp., 4.875%, 01/01/2007      12,000,000      11,280,000
          Getty Images, Inc., 5.00%, 03/15/2007 144A      10,000,000      7,245,000
          Liberty Media Corp.:          
               3.50%, 01/15/2031 144A      7,000,000      7,341,250
               4.00%, 11/15/2029 144A      7,000,000      6,107,500
               
                               31,973,750
               
 
FINANCIALS – 0.5%          
 
Real Estate – 0.5%          
          Eop Operating LP, 7.25%, 11/15/2008 144A      5,000,000      5,200,000
               
 
HEALTH CARE – 0.3%          
 
Biotechnology – 0.3%          
          Affymetrix, Inc., 4.75%, 02/15/2007      4,000,000      3,025,000
               
 
INDUSTRIALS – 0.3%          
 
Commercial Services & Supplies – 0.3%          
          Young and Rubicam, Inc., 3.00%, 01/15/2005      3,000,000      3,041,250
               
 
INFORMATION TECHNOLOGY – 7.4%          
 
Communications Equipment – 1.2%          
          American Tower Corp., 6.25%, 10/15/2009      6,000,000      9,810,000
          RF Micro Devices, 3.75%, 08/15/2005      3,000,000      2,291,250
               
                              12,101,250
               
 
Electronic Equipment & Instruments – 0.3%          
          Burr Brown Corp. (exchangeable for Texas Instruments, Inc.
               Common Stock), 4.25%, 02/15/2007		      2,500,000      3,350,000
               
 
Internet Software & Services – 2.4%          
          At Home Corp., 4.75%, 12/15/2006 144A      4,000,000      2,375,000
          Cnet, Inc., 5.00%, 03/01/2006      5,950,000      4,276,563
          DoubleClick, Inc., 4.75%, 03/15/2006      6,000,000      4,522,500
          Exodus Communications, Inc., 4.75%, 07/15/2008 144A p      8,000,000      7,790,000
          I2 Technologies, 5.25%, 12/15/2006      2,500,000      4,003,125
          Internet Capital Group, Inc., 5.50%, 12/21/2004      4,000,000      1,320,000
               
                              24,287,188
               
 
Semiconductor Equipment & Products – 2.0%          
          Lattice Semiconductor Corp., 4.75%, 11/01/2006      6,500,000      9,368,125
          Triquint Semiconductor, Inc., 4.00%, 03/01/2007 144A      7,000,000      5,617,500
          Vitesse Semiconductor Corp., 4.00%, 03/15/2005      5,000,000      4,781,250
               
                              19,766,875
               
 
40
 
EVERGREEN
Equity Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Principal
Amount		      Value
 
CONVERTIBLE DEBENTURES – continued          
 
INFORMATION TECHNOLOGY – continued          
 
Software – 1.5%          
          Juniper Networks, Inc., 4.75%, 03/15/2007      $2,000,000      $    1,910,000
          Peregrine Systems, Inc., 5.50%, 11/15/2007 144A      7,000,000      10,036,250
          Rational Software Corp., 5.00%, 02/01/2007 144A      2,000,000      3,280,000
               
                              15,226,250
               
 
TELECOMMUNICATION SERVICES – 0.7%          
 
Diversified Telecommunication Services – 0.7%          
          Level 3 Communications, Inc.:          
               6.00%, 09/15/2009      5,000,000      4,318,750
               6.00%, 03/15/2010      5,000,000      3,031,250
               
                              7,350,000
               
                    Total Convertible Debentures (cost $132,171,896)                134,027,813
               
 
CORPORATE BONDS – 0.1%          
 
FINANCIALS – 0.1%          
 
Banks – 0.1%          
          NationsBank Corp., 6.50%, 08/15/2003 (cost $1,012,370)      1,000,000      1,012,533
            
 
U.S. GOVERNMENT & AGENCY OBLIGATIONS – 5.1%          
          FFCB, 5.75%, 12/07/2028      2,000,000      1,819,358
          FHLB:          
               5.375%, 10/06/2003      2,000,000      1,993,966
               6.53%, 12/28/2007      2,000,000      1,997,620
          FHLMC:          
               6.54%, 12/10/2007-03/19/2008      4,000,000      4,016,222
               7.59%, 09/19/2006      2,000,000      2,028,578
               7.87%, 08/08/2011      2,000,000      2,020,304
          FNMA:          
               6.00%, 01/14/2005      1,850,000      1,850,673
               6.10%, 01/26/2005      2,215,000      2,213,410
               6.16%, 01/23/2008      3,000,000      2,989,287
               6.24%, 01/14/2008      2,000,000      1,995,970
               6.32%, 03/03/2008      3,000,000      3,010,866
               6.41%, 03/08/2006      1,000,000      1,032,875
               6.42%, 02/12/2008      5,000,000      4,974,780
               6.46%, 01/01/2008      2,000,000      2,014,086
               6.52%, 03/05/2008      4,000,000      3,982,248
               6.875%, 09/24/2012      2,355,000      2,440,317
               7.125%, 01/15/2030      7,750,000      8,718,215
               7.28%, 05/23/2007      3,000,000      3,085,410
               
                    Total U.S. Government & Agency Obligations (cost $52,416,860)           52,184,185
               
 
41
 
EVERGREEN
Equity Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Principal
Amount		      Value
 
U.S. TREASURY OBLIGATIONS – 0.9%          
          U.S. Treasury Bonds:          
               7.125%, 02/15/2023      $1,500,000      $      1,779,924  
               7.25%, 08/15/2022      6,000,000      7,197,852  
               
  
                    Total U.S. Treasury Obligations (cost $8,073,899)           8,977,776  
               
  
 
 
       Shares      Value
 
SHORT-TERM INVESTMENTS – 4.6%          
 
MUTUAL FUND SHARES – 4.6%          
          Evergreen Select Money Market Fund ø      25,785,804      25,785,804  
          Navigator Prime Portfolio pp      21,003,037      21,003,037  
               
  
                    Total Short-Term Investments (cost $46,788,841)                46,788,841  
               
  
Total Investments – (cost $933,750,235) – 102.9%      1,045,670,269  
Other Assets and Liabilities – (2.9%)      (29,867,892 )
               
  
Net Assets – 100.0%      $1,015,802,377  
               
  
 
See Combined Notes to Schedules of Investments.
 
EVERGREEN
Growth and Income Fund
Schedule of Investments
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                        
 
COMMON STOCKS – 95.4%          
 
CONSUMER DISCRETIONARY – 14.2%          
 
Auto Components – 0.1%              
 
          Johnson Controls, Inc.       10,000      $              649,800
               
 
Hotels, Restaurants & Leisure – 0.1%          
          Carnival Corp., Class A      29,500      951,670
               
 
Household Durables – 1.6%          
          Black & Decker Corp.       19,400      868,150
          Ethan Allen Interiors, Inc.       17,100      628,767
          Leggett & Platt, Inc.       11,100      233,100
          Mohawk Industries, Inc. *      129,100      4,066,650
          Sony Corp., ADR p      115,700      8,509,735
          Toll Brothers, Inc. *      177,000      6,159,600
               
                              20,466,002
               
 
Media – 11.1%              
 
          AOL Time Warner, Inc. *      141,150      7,418,844
          Charter Communications, Inc. p      967,900      21,898,737
          Clear Channel Communications, Inc. *      200,889      13,099,972
          Comcast Corp., Class A *      105,510      4,517,147
          Cox Communications, Inc., Class A *      155,900      7,243,114
          Echostar Communications Corp., Class A      24,100      744,087
          Emmis Broadcasting Corp., Class A *p      259,200      9,606,600
          Fox Entertainment Group, Inc. *      286,100      6,437,250
          Gaylord Entertainment Co.       646,880      15,279,306
          Getty Images, Inc.      75,600      2,206,575
          Martha Stewart Living Omnimedia, Inc. p      593,400      15,873,450
          Netratings, Inc. *      47,500      712,500
          New York Times Co., Class A      193,200      8,421,588
          Univision Communications, Inc., Class A *p      172,900      7,370,727
          Viacom, Inc., Class A *      127,200      7,121,928
          Walt Disney Co.       235,800      7,180,110
          Washington Post Co., Class B      975      571,350
          Young Broadcasting, Inc., Class A *      49,200      1,669,725
               
                               137,373,010
               
 
Specialty Retail – 1.3%              
 
          Intimate Brands, Inc., Class A      260,900      4,957,100
          RadioShack Corp.      118,100      6,500,224
          Tiffany & Co.       115,600      4,332,688
          Williams Sonoma, Inc. *      24,600      659,280
               
                 16,449,292
               
 
CONSUMER STAPLES – 1.2%              
 
Food & Drug Retailing – 0.1%              
          CVS Corp.      14,300      846,560
               
 
43
EVERGREEN
Growth and Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                        
 
COMMON STOCKS – continued
 
CONSUMER STAPLES – continued            
 
Personal Products – 1.1%          
          Colgate-Palmolive Co.      56,300      $          3,382,504
          Estee Lauder Companies, Inc., Class A p      168,600      6,423,660
          Kimberly-Clark Corp.       64,000      4,144,000
             
                               13,950,164
               
 
ENERGY – 4.6%          
 
Energy Equipment & Services – 0.5%          
          Nabors Industries, Inc. *      18,200      1,073,982
          Petroleum Helicopters, Inc.       145,500      1,891,500
          Santa Fe International Corp.       1,000      33,900
          Schlumberger, Ltd.       28,314      2,174,515
          Weatherford International, Inc. p      14,800      723,424
               
                              5,897,321
               
 
Oil & Gas – 4.1%          
          BP Amoco Plc, ADR      236,176      12,163,064
          Burlington Resources, Inc.       54,400      2,301,120
          Conoco, Inc., Class B      83,505      2,354,841
          Exxon Mobil Corp.       129,300      10,880,595
          Houston Exploration Co. *      140,000      4,832,800
          Kerr-McGee Corp.       135,155      8,739,122
          Murphy Oil Corp.       85,500      4,953,870
          Tosco Corp.       131,200      4,433,248
               
                              50,658,660
               
 
FINANCIALS – 23.2%          
 
Banks – 9.5%          
          AmSouth Bancorp      41,167      713,424
          Astoria Financial Corp.       93,800      4,895,187
          Bank of New York Co., Inc.       118,200      6,469,086
          Bank United Corp. *      247,000      15,452,937
          Banknorth Group, Inc.       152,000      3,011,500
          BB&T Corp. p      12,000      439,560
          BSB Bancorp, Inc.       202,800      3,346,200
          Charter One Financial, Inc.       14,700      415,128
          Comerica, Inc.       16,100      970,830
          First Tennessee National Corp. p      45,200      1,457,700
          Hibernia Corp., Class A      170,300      2,484,677
          Huntington Bancshares, Inc.       19,700      304,119
          Marshall & Ilsley Corp.       35,300      1,916,437
          Mellon Financial Corp.       273,500      12,745,100
          North Fork Bancorp, Inc.       239,600      5,865,408
          Pacific Century Financial Corp.       44,900      884,979
          SouthTrust Corp.       20,600      914,125
 
44
EVERGREEN
Growth and Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                        
 
COMMON STOCKS – continued
 
FINANCIALS – continued          
 
Banks – continued          
          State Street Corp.       92,100      $        10,400,853
          Suntrust Banks, Inc.       61,320      4,102,308
          Susquehanna Bancshares, Inc.       160,500      2,708,438
          Webster Financial Corp.       513,100      14,527,144
          Wells Fargo & Co.       361,426      18,617,053
          Wilmington Trust Corp.       81,000      4,800,060
               
                                 117,442,253
               
 
Diversified Financials – 11.5%          
          Bear Stearns Companies, Inc.       41,800      2,579,060
          Citigroup, Inc.       324,700      18,173,459
          Countrywide Credit Industries, Inc.       346,000      16,680,660
          Freddie Mac      303,200      18,495,200
          Goldman Sachs Group, Inc.       15,200      1,729,000
          Legg Mason, Inc.       150,032      8,292,269
          Lehman Brothers Holdings, Inc.       240,600      19,796,568
          Neuberger-Berman, Inc. p      125,850      10,036,537
          Stilwell Financial, Inc.       761,300      33,086,098
          T. Rowe Price Group, Inc.       336,600      13,127,400
               
                              141,996,251
               
 
Insurance – 1.7%          
          AMBAC Financial Group, Inc.       75,150      4,186,607
          American International Group, Inc.       62,100      5,279,742
          Hartford Financial Services Group, Inc.       164,000      10,086,000
          Lincoln National Corp.       18,100      811,785
          Progressive Corp.       4,000      375,800
               
                              20,739,934
               
 
Real Estate – 0.5%          
          Boston Properties, Inc. REIT      26,300      1,067,780
          Duke Weeks Realty Corp.       57,214      1,429,206
          Liberty Property Trust REIT      39,000      1,058,850
          Post Property, Inc. REIT      80,100      3,063,024
               
                              6,618,860
               
 
HEALTH CARE – 11.7%          
 
Biotechnology – 1.5%          
          Applera Corp. – Applied Biosystems Group      188,150      15,804,600
          Gilead Sciences, Inc. *      28,600      1,935,863
          Immunex Corp. *      9,000      275,625
          QLT Phototherapeutics, Inc. *p      38,000      1,021,250
               
                              19,037,338
               
 
45
EVERGREEN
Growth and Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                        
 
COMMON STOCKS – continued
 
HEALTH CARE – continued
 
Health Care Equipment & Supplies – 1.6%          
          Alza Corp. *      82,400      $        3,411,360
          Apogent Technology, Inc. *      292,200      6,165,420
          Becton Dickinson & Co. *      301,700      10,372,446
               
                              19,949,226
               
Health Care Providers & Services – 1.1%          
          Cardinal Health, Inc.       2,500      238,250
          Caremark Rx, Inc. p      53,191      670,207
          Health Management Associates, Inc., Class A *      288,025      4,645,843
          IMS Health, Inc.       238,000      6,002,360
          Sybron Dental Specialties *      97,400      1,865,210
          Synavant, Inc. *p      14,125      88,281
               
                                  13,510,151
               
 
Pharmaceuticals – 7.5%          
          Abbott Laboratories      228,600      10,254,996
          American Home Products Corp.       220,900      13,055,190
          Bristol-Myers Squibb Co.       83,900      5,192,571
          Elan Corp. Plc, ADR *p      114,571      5,751,464
          Eli Lilly & Co.       49,500      3,900,600
          Johnson & Johnson      95,200      8,865,976
          Mylan Laboratories, Inc.       3,100      72,385
          Pfizer, Inc.      543,700      24,548,055
          Pharmacia Corp.      203,900      11,422,478
          Schering-Plough Corp.      180,100      9,077,040
               
                              92,140,755
               
 
INDUSTRIALS – 12.3%
Aerospace & Defense – 2.6%
          Bombardier, Inc., Class B      464,000      7,594,584
          General Dynamics Corp.      84,000      5,962,320
          Lockheed Martin Corp.       558,300      19,361,844
               
                              32,918,748
               
 
Air Freight & Couriers – 0.8%
          CNF Transportation, Inc.      21,600      741,312
          Expeditors International of Washington, Inc.      155,600      9,073,425
               
                              9,814,737
               
 
Airlines – 0.1%
          Continental Airlines, Inc., Class B *p      20,700      1,079,505
               
 
Building Products – 0.0%
          Masco Corp.      24,700      592,800
               
 
Commercial Services & Supplies – 5.4%
          BARRA, Inc. *      135,850      6,673,631
          Cadence Design Systems, Inc. *      236,300      6,968,487
 
46
EVERGREEN
Growth and Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                        
 
COMMON STOCKS – continued
 
INDUSTRIALS – continued
 
Commercial Services & Supplies – continued
          Computer Sciences Corp. *      84,200      $          5,439,320
          Convergys Corp. *      613,000      29,123,630
          Dendrite International, Inc.      45,000      843,750
          Electronic Data Systems Corp.      16,000      890,400
          Equifax, Inc.      152,100      4,509,765
          Herman Miller, Inc.      11,100      317,738
          McGraw-Hill Co., Inc.      181,800      11,607,930
               
                              66,374,651
               
 
Construction & Engineering – 0.4%
          Jacobs Engineering Group, Inc. *      100,500      4,798,875
          Spectrasite Holdings, Inc. p      10,800      178,200
               
                              4,977,075
               
 
Industrial Conglomerates – 2.3%
          Dover Corp.       124,900      5,170,860
          General Electric Co.      440,300      20,253,800
          Honeywell International, Inc.      59,100      2,792,475
               
                              28,217,135
               
 
Machinery – 0.3%
          APW, Ltd. *      103,100      4,188,953
               
 
Marine – 0.1%
          Tidewater, Inc.      15,000      717,750
               
Road & Rail – 0.3%          
          Kansas City Southern Industries, Inc. p      290,600      3,670,278
               
 
INFORMATION TECHNOLOGY – 18.2%          
 
Communications Equipment – 6.0%          
          American Tower Systems Corp., Class A *p      795,420      28,794,204
          Cisco Systems, Inc. *      447,566      16,755,752
          Corning, Inc.       106,270      6,026,572
          Infospace, Inc. p      544,598      2,876,158
          L-3 Communications Holding Corp.       73,900      5,927,519
          Lucent Technologies, Inc.       153,400      2,853,240
          Motorola, Inc.       370,775      8,457,378
          Powerwave Technologies, Inc.       76,900      2,984,681
               
                              74,675,504
               
 
Computers & Peripherals – 2.3%          
          Dell Computer Corp. *      20,900      546,012
          EMC Corp. *      210,700      16,011,093
          Palm, Inc. *      382,821      10,384,020
          Sun Microsystems, Inc. *      46,000      1,405,875
               
                              28,347,000
               
 
 
47
EVERGREEN
Growth and Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                        
 
COMMON STOCKS – continued
 
INFORMATION TECHNOLOGY – continued
 
Electronic Equipment & Instruments – 0.1%          
          Methode Electronics, Inc., Class A      44,000      $              998,250
          Stratos Lightwave, Inc.       3,075      41,897
               
                              1,040,147
               
 
Internet Software & Services – 0.6%          
          Commerce One, Inc.       84,800      2,591,700
          Real Networks, Inc. *      456,700      4,652,631
               
                              7,244,331
               
 
Semiconductor Equipment & Products – 3.6%          
          Applied Materials, Inc. *      41,000      2,062,813
          Atmel Corp.       66,000      1,122,000
          Conexant Systems, Inc. *p      32,100      579,806
          Intel Corp.       325,300      12,036,100
          Jabil Circuit, Inc. *      137,400      5,289,900
          KLA-Tencor Corp. *      186,500      8,555,687
          Lattice Semiconductor Corp. *p      64,100      1,662,594
          Mentor Graphics Corp.       132,200      3,734,650
          Novellus Systems, Inc. *      5,200      251,550
          Texas Instruments, Inc.       173,769      7,611,082
          Triquint Semiconductor, Inc. p      63,200      2,227,800
          Vitesse Semiconductor Corp. *      3,000      213,188
          Zilog, Inc.       18,648      9,324
               
                              45,356,494
               
 
Software – 5.6%          
          Adobe Systems, Inc.       153,700      6,714,769
          I2 Technologies, Inc. *      92,000      4,657,500
          Intuit, Inc. *      14,000      553,000
          Macromedia, Inc. *      132,900      4,352,475
          Microsoft Corp. *      164,825      10,064,627
          National Instruments Corp.       86,800      4,274,900
          Network Associates, Inc. *p      409,000      3,093,062
          Peregrine Systems, Inc. *      22,000      673,750
          Rational Software Corp. *      136,500      7,089,469
          Siebel Systems, Inc. *      35,500      2,354,094
          Veritas Software Corp. *      269,725      25,590,159
               
                              69,417,805
               
MATERIALS – 4.0%
 
Chemicals – 2.7%
          Albemarle Corp.       70,000      1,753,500
          Donaldson, Inc.      474,800      13,246,920
          Engelhard Corp.       223,600      5,042,180
          IMC Global, Inc.       319,300      5,051,326
 
48
EVERGREEN
Growth and Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                        
 
COMMON STOCKS – continued
 
MATERIALS – continued
 
Chemicals – continued
          PPG Industries, Inc.      47,100      $          2,175,078
          Sherwin Williams Co.       46,000      1,235,100
          Sigma-Aldrich Corp. p      118,800      4,707,450
               
                              33,211,554
               
 
Construction Materials – 0.4%
          Elcor Chemical Corp. p      209,000      3,398,340
          Martin Marietta Materials, Inc.      27,300      1,156,701
               
                              4,555,041
               
 
Containers & Packaging – 0.7%
          AptarGroup, Inc.       255,200      7,635,584
          Sealed Air Corp. *p      39,640      1,261,741
               
                              8,897,325
               
 
Metals & Mining – 0.2%
          Phelps Dodge Corp.      71,300      3,308,320
               
 
TELECOMMUNICATION SERVICES – 4.1%
 
Diversified Telecommunication Services – 2.8%
          AT&T Corp., Liberty Media Group, Class A *      186,200      3,146,780
          Broadwing, Inc.      190,000      5,335,200
          Centurytel, Inc.      208,800      6,552,144
          Global Crossing, Ltd. *p      118,600      2,611,572
          Powertel, Inc.      87,500      7,136,719
          Qwest Communications International, Inc. *      158,996      6,696,912
          WorldCom, Inc. *      174,088      3,753,772
               
                              35,233,099
               
 
Wireless Telecommunications Services – 1.3%
          Crown Castle International Corp.      63,900      1,785,206
          Nextel Communications, Inc. *      76,300      2,618,044
          Voicestream Wireless Corp. *      22,671      2,809,787
          Western Wireless Corp., Class A      180,900      8,332,706
               
                              15,545,743
               
 
UTILITIES – 1.9%
 
Electric Utilities – 0.6%
          Dynegy, Inc. Class A      50,000      2,435,000
          Mirant Corp.      22,500      546,750
          Niagara Mohawk Holdings, Inc. *      230,100      3,987,633
          UtiliCorp United, Inc. p      33,600      960,960
               
                              7,930,343
               
 
 
49
EVERGREEN
Growth and Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                        
 
COMMON STOCKS – continued
 
UTILITIES – continued
 
Gas Utilities – 1.3%
          Piedmont Natural Gas Co., Inc.       76,500      $          2,563,515
          Southwestern Energy Co.      522,600      4,713,852
          Williams Companies, Inc.      223,100      8,729,903
               
                              16,007,270
               
                    Total Common Stocks (cost $850,365,322)                1,181,998,855
               
 
CONVERTIBLE PREFERRED STOCKS – 1.2%
 
CONSUMER DISCRETIONARY – 0.8%
Leisure Equipment & Products – 0.8%
          Tribune Co. (exchangeable for Mattel, Inc. Common Stock), 6.25%,
               08/15/2001		      531,800      9,450,086
               
 
MATERIALS – 0.2%
 
Containers & Packaging – 0.2%
          Sealed Air Corp., Ser. A, $2.00, 04/01/2018      78,375      2,605,969
               
 
TELECOMMUNICATION SERVICES – 0.2%
 
Diversified Telecommunication Services – 0.2%
          Global Crossing, Ltd. (exchangeable for Global Crossing Ltd. Common
               Stock), 7.00%, 12/31/2049 144A		      18,800      2,975,100
               
                    Total Convertible Preferred Stocks (cost $16,195,905)                15,031,155
               
 
PREFERRED STOCKS – 0.0%
 
HEALTH CARE – 0.0%
 
Health Care Equipment & Supplies – 0.0%
          Fresenius National Medical Care, Inc., Ser. D (cost $22,740) *      130,000      3,965
               
 
 
       Principal
Amount		      Value
 
CONVERTIBLE DEBENTURES – 3.2%
 
CONSUMER DISCRETIONARY – 0.5%
 
Internet & Catalog Retail – 0.1%
          Amazon.Com, Inc., 4.75%, 02/01/2009      $2,700,000      1,181,250
            
 
Media – 0.4%
          Echostar Communications Corp., 4.875%, 01/01/2007      1,000,000      940,000
          Getty Images, Inc., 5.00%, 03/15/2007 144A p      5,500,000      3,987,500
            
                              4,927,500
            
 
HEALTH CARE – 0.4%
 
Biotechnology – 0.4%
          Affymetrix, Inc., 4.75%, 02/15/2007      6,400,000      4,840,000
            
 
 
50
EVERGREEN
Growth and Income Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
       Principal
Amount		      Value
                          
 
CONVERTIBLE DEBENTURES – continued
 
INFORMATION TECHNOLOGY – 2.3%
 
Communications Equipment – 0.4%
          American Tower Corp., 6.25%, 10/15/2009      $1,900,000      $          3,106,500  
          RF Micro Devices, 3.75%, 08/15/2005      1,900,000      1,451,125  
               
  
                    4,557,625  
               
  
Electronic Equipment & Instruments – 0.3%
          Burr Brown Corp. (exchangeable for Texas Instruments, Inc. Common
               Stock), 4.25%, 02/15/2007		      2,975,000      3,986,500  
               
  
 
Internet Software & Services – 0.3%
          Cnet, Inc., 5.00%, 03/01/2006      5,000,000      3,593,750  
               
  
 
Semiconductor Equipment & Products – 0.8%
          Triquint Semiconductor, Inc., 4.00%, 03/01/2007 144A      7,550,000      6,058,875  
          Vitesse Semiconductor Corp., 4.00%, 03/15/2005 144A      3,775,000      3,609,843  
               
  
                              9,668,718  
               
  
 
Software – 0.5%
          Juniper Networks, Inc., 4.75%, 03/15/2007      4,100,000      3,915,500  
          Network Associates, Inc., 0.00%, 02/13/2018 ¤p      7,000,000      2,467,500  
               
  
                              6,383,000  
               
  
                    Total Convertible Debentures (cost $47,112,621)                39,138,343  
               
  
 
       Shares      Value
 
SHORT-TERM INVESTMENTS – 10.0%
 
MUTUAL FUND SHARES – 10.0%
          Evergreen Select Money Market Fund ø      1,120,061                  1,120,061  
          Navigator Prime Portfolio pp      123,270,306      123,270,306  
               
  
                    Total Short-Term Investments (cost $124,390,367)           124,390,367  
               
  
Total Investments – (cost $1,038,086,955) – 109.8%      1,360,562,685  
Other Assets and Liabilities – (9.8%)      (121,610,599 )
               
  
Net Assets – 100.0%      $    1,238,952,086  
               
  
 
See Combined Notes to Schedules of Investments.
 
EVERGREEN
Small Cap Value Fund
Schedule of Investments
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                      
 
COMMON STOCKS – 96.4%          
 
CONSUMER DISCRETIONARY – 19.4%          
 
Auto Components – 0.2%          
          Arvinmeritor, Inc.       40,000      $          596,000
               
 
Hotels, Restaurants & Leisure – 0.7%          
          Ruby Tuesday, Inc.       125,000      1,910,000
               
 
Household Durables – 3.1%          
          Briggs & Stratton Corp. p      3,000      126,960
          Ethan Allen Interiors, Inc. p      58,400      2,147,368
          Furniture Brands International, Inc. *p      80,400      2,058,240
          Industrie Natuzzi SpA, ADR      157,500      2,066,400
          MDC Holdings, Inc.       43,800      1,511,100
               
                              7,910,068
               
 
Leisure Equipment & Products – 1.3%          
          Brunswick Corp. p      92,000      1,796,760
          Monaco Coach Corp. *p      39,600      816,948
          National RV Holdings, Inc. *      60,000      813,600
               
                              3,427,308
               
 
Media – 4.2%          
          Beasley Broadcast Group, Inc. *      75,000      1,171,875
          Citadel Communications Corp. *      97,000      2,449,250
          Emmis Broadcasting Corp., Class A *p      60,000      2,223,750
          Scholastic Corp. *p      13,000      590,688
          Speedway Motorsports, Inc. *p      70,500      1,790,700
          Valassis Communications, Inc. *p      72,500      2,439,625
               
                              10,665,888
               
 
Specialty Retail – 6.3%          
          Abercrombie & Fitch Co., Class A *      67,100      2,000,251
          Ann Taylor Stores Corp. *p      77,000      2,259,950
          Haverty Furniture Companies, Inc.       90,000      1,192,500
          Linens ’n Things, Inc. *p      51,200      1,830,912
          Pier 1 Imports, Inc.       262,800      2,919,708
          Ross Stores, Inc. p      76,600      1,752,225
          Tweeter Home Entertainment Group, Inc. *p      107,000      2,119,937
          Williams Sonoma, Inc. *      76,000      2,036,800
               
                               16,112,283
               
 
Textiles & Apparel – 3.6%          
          Gildan Activewear, Inc. *p      19,500      819,000
          Guess, Inc. *p      104,900      736,398
          Nautica Enterprises, Inc. *p      45,000      753,750
          Reebok International, Ltd. *p      92,500      2,519,700
          Russell Corp.       55,600      1,059,736
 
52
EVERGREEN
Small Cap Value Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                      
 
COMMON STOCKS – continued          
 
CONSUMER DISCRETIONARY – continued          
 
Textiles & Apparel – continued          
          Tommy Hilfiger Corp. *p      125,000      $      1,775,000
          Wolverine World Wide, Inc.       102,500      1,569,275
               
                              9,232,859
               
 
CONSUMER STAPLES – 4.7%          
Beverages – 0.9%              
          Constellation Brands, Inc., Class A *p      31,700      2,136,897
               
 
Food Products – 3.8%              
          Corn Products International, Inc. p      69,100      1,762,050
          Earthgrains Co.      75,000      1,426,500
          International Multifoods Corp.       73,300      1,592,076
          Michael Foods, Inc.      70,300      2,069,456
          Sensient Technology Corp.      88,500      1,976,205
          Smithfield Foods, Inc. *      32,000      960,000
               
                              9,786,287
               
 
ENERGY – 3.6%              
 
Energy Equipment & Services – 0.8%              
          Hanover Compressor Co. *p      15,000      575,550
          Pride International, Inc. *p      49,700      1,222,620
          UTI Energy Corp. *      8,800      290,312
               
                              2,088,482
               
 
Oil & Gas – 2.8%              
          Berry Petroleum Co., Class A      95,400      1,202,040
          Cross Timbers Oil Co.      27,850      576,495
          Newfield Exploration Co. *      22,800      763,572
          Pennzoil-Quaker State Co. p      164,209      1,978,718
          Stone Energy Corp. *p      11,000      597,410
          Valero Energy Corp. p      58,500      2,021,175
               
                              7,139,410
               
 
FINANCIALS – 21.6%              
 
Banks – 15.7%              
          Astoria Financial Corp.       52,200      2,724,187
          Bancorp Connecticut, Inc.      21,000      346,500
          Banknorth Group, Inc.      152,400      3,019,425
          Britton & Koontz Capital Corp.      85,600      1,070,000
          Centura Banks, Inc.      31,280      1,651,897
          City National Corp.      36,350      1,331,137
          Civic Bancorp *      110,250      1,715,766
          Columbia Banking Systems, Inc. *      69,960      1,066,890
          Commercial Bankshares, Inc.      35,885      681,815
          Cullen/Frost Bankers, Inc.      78,500      3,037,950
 
53
EVERGREEN
Small Cap Value Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                      
 
COMMON STOCKS – continued          
 
FINANCIALS – continued              
 
Banks – continued              
          First Oak Brook Bancshares, Inc., Class A      122,186      $      2,504,813
          First State Bancorp      173,328      2,686,584
          Firstfed Financial Corp. *p      30,000      934,500
          Granite State Bankshares, Inc.      188,400      4,050,600
          Harbor Florida Bancshares, Inc.      5,000      72,813
          Independence Community Bank Corp.       95,000      1,549,687
          MetroWest Bank      124,200      846,113
          Mid-State Bancshares      111,600      3,696,750
          New York Community Bancorp, Inc.       36,000      1,370,250
          Prosperity Bancshares, Inc.      87,000      1,791,656
          Richmond County Financial Corp.      30,000      763,125
          Washington Trust Bancorp, Inc.      47,587      743,547
          West Coast Bancorp, Inc.      91,300      941,531
          Wilmington Trust Corp.       28,700      1,700,762
               
                 40,298,298
               
 
Diversified Financials – 2.5%
          Raymond James Financial, Inc. p      18,000      692,640
          United Rentals, Inc. *p      183,000      3,164,070
          Waddell & Reed Financial, Inc., Class A p      73,150      2,601,214
               
                 6,457,924
               
 
Insurance – 0.4%
          Landamerica Financial Group, Inc. p      23,200      1,084,600
               
 
Real Estate – 3.0%
          AMB Property Corp. REIT p      95,900      2,363,935
          Brandywine Realty Trust REIT      66,000      1,359,600
          Liberty Property Trust REIT p      54,500      1,479,675
          Prentiss Properties Trust REIT p      44,200      1,097,044
          SL Green Realty Corp. REIT      45,900      1,282,446
               
                 7,582,700
               
 
HEALTH CARE – 10.4%
 
Health Care Equipment & Supplies – 3.3%
          Apogent Technology, Inc. *      136,500      2,880,150
          CONMED Corp. *      41,400      807,300
          DENTSPLY International, Inc.      40,000      1,382,500
          Exactech, Inc. *p      75,200      1,353,600
          KV Pharmaceutical Co. *      34,200      1,008,900
          KV Pharmaceutical Co., Class A *      33,850      998,913
               
                 8,431,363
               
 
Health Care Providers & Services – 5.4%
          AmeriSource Health Corp., Class A *p      28,234      1,350,432
          Apria Healthcare Group, Inc. *p      93,200      2,511,740
 
54
EVERGREEN
Small Cap Value Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                      
 
COMMON STOCKS – continued          
 
HEALTH CARE – continued
 
Health Care Providers & Services – continued
          Bergen Brunswig Corp.       111,500      $      2,029,300
          Health Net, Inc. *p      52,000      1,136,720
          Henry Schein, Inc. *      74,600      2,168,063
          Owens & Minor, Inc. p      118,600      1,701,910
          Sybron Dental Specialties *      124,033      2,375,232
          Triad Hospitals, Inc. *p      15,000      425,625
               
                 13,699,022
               
 
Pharmaceuticals – 1.7%
          Alpharma, Inc., Class A p      17,300      640,100
          Galen Holdings Plc p      18,375      891,475
          Watson Pharmaceuticals, Inc. *p      55,000      2,863,300
               
                 4,394,875
               
 
INDUSTRIALS – 13.9%
 
Air Freight & Couriers – 0.9%
          CNF Transportation, Inc. p      67,500      2,316,600
               
 
Building Products – 1.1%
          American Woodmark Corp.      103,400      2,080,925
          LSI Industries, Inc.      42,900      772,200
               
                 2,853,125
               
 
Commercial Services & Supplies – 1.9%
          Affiliated Computer Services, Inc., Class A *p      20,400      1,305,600
          Bowne & Co., Inc.      91,100      938,330
          Keane, Inc. *p      33,600      566,160
          NCI Building Systems, Inc. *      30,400      623,200
          Spherion Corp. *      55,000      636,350
          Steiner Leisure, Ltd. *      45,800      772,875
               
                 4,842,515
               
 
Electrical Equipment – 1.6%
          Artesyn Technologies, Inc. *p      109,000      2,725,000
          Baldor Electric Co.      61,400      1,339,748
               
                 4,064,748
               
 
Industrial Conglomerates – 0.8%
          Pentair, Inc.      78,000      2,163,720
               
 
Machinery – 4.8%
          AGCO Corp.      94,300      1,130,657
          APW, Ltd. *      49,800      2,023,374
          Astec Industries, Inc. *      135,000      1,923,750
          Badger Meter, Inc. p      30,000      802,500
          Idex Corp.       42,200      1,280,348
          Manitowoc Co., Inc. p      41,800      1,251,910
 
55
EVERGREEN
Small Cap Value Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                      
 
COMMON STOCKS – continued          
 
INDUSTRIALS – continued
 
Machinery – continued
          Oshkosh Truck Corp.       25,000      $      1,148,437
          Roper Industries, Inc. p      74,300      2,845,690
               
                 12,406,666
               
 
Marine – 0.5%
          UTI Worldwide, Inc. *p      67,000      1,147,375
               
 
Road & Rail – 2.3%
          JB Hunt Transportation Services, Inc. p      59,000      1,124,688
          Kansas City Southern Industries, Inc. p      54,200      684,546
          U.S. Freightways Corp.       70,500      2,608,500
          Yellow Corp. *      61,000      1,441,125
               
                 5,858,859
               
 
INFORMATION TECHNOLOGY – 13.5%
 
Communications Equipment – 2.0%
          Communications Systems, Inc.      59,100      547,598
          Ditech Communications Corp. *p      184,000      2,231,000
          Virata Corp. *p      144,000      2,367,000
               
                 5,145,598
               
 
Computers & Peripherals – 0.8%
          Radisys Corp. p      74,000      2,035,000
               
 
Electronic Equipment & Instruments – 1.5%
          Actuant Corp. p      10,320      185,760
          Manufacturers Services, Ltd. *p      159,700      1,277,600
          Varian, Inc. *      23,000      1,036,438
          Viasystems Group, Inc. *      122,000      1,222,440
               
                              3,722,238
               
 
Internet Software & Services – 0.5%
          Avocent Corp. *      41,263      1,279,153
               
 
Semiconductor Equipment & Products – 3.7%
          Advanced Energy Industries, Inc. *p      12,000      368,250
          Alliance Semiconductor Corp. *p      73,000      1,163,437
          Axcelis Technologies, Inc. *      168,000      1,879,500
          Fairchild Semiconductor International *      69,300      1,275,120
          Integrated Circuit System, Inc. *p      140,400      3,273,075
          Veeco Instruments, Inc. *p      28,900      1,639,172
               
                              9,598,554
               
 
Software – 5.0%
          Answerthink Consulting Group *p      251,500      1,941,266
          FileNet Corp. *      84,100      2,281,212
          Hyperion Solutions Corp. *      94,100      2,023,150
 
56
EVERGREEN
Small Cap Value Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                      
 
COMMON STOCKS – continued          
 
INFORMATION TECHNOLOGY – continued
 
Software – continued
          Network Associates, Inc. *p      301,200      $      2,277,825
          Progress Software Corp. *      146,200      2,202,138
          Remedy Corp. *      83,800      2,199,750
               
                              12,925,341
               
 
MATERIALS – 5.2%
 
Chemicals – 4.2%
          Cambrex Corp.      43,400      1,942,150
          Crompton Corp.      226,500      2,550,390
          Cytec Industries, Inc. *      40,000      1,273,200
          Donaldson, Inc. p      65,200      1,819,080
          Olin Corp.      100,500      1,799,955
          Solutia, Inc.      109,400      1,374,064
               
                              10,758,839
               
 
Construction Materials – 0.6%
          Trex Co., Inc. *p      47,000      1,410,470
               
 
Containers & Packaging – 0.4%
          AptarGroup, Inc. p      37,100      1,110,032
               
 
TELECOMMUNICATION SERVICES – 0.4%
 
Diversified Telecommunication Services – 0.4%
          Hickory Technology Corp.      63,395      1,125,261
               
 
UTILITIES – 3.7%
 
Electric Utilities – 2.4%
          Cleco Corp. p      32,500      1,520,675
          El Paso Electric Co. *      134,000      1,582,540
          UtiliCorp United, Inc. p      57,000      1,630,200
          Wisconsin Energy Corp. p      76,500      1,537,650
               
                              6,271,065
               
 
Gas Utilities – 1.3%
          Chesapeake Utilities Corp.       37,300      676,995
          MDU Resources Group, Inc.       91,100      2,641,900
               
                              3,318,895
               
                    Total Common Stocks (cost $221,206,347)                247,308,318
               
 
       Principal
Amount		      Value
 
CONVERTIBLE DEBENTURES – 0.4%
 
HEALTH CARE – 0.4%
 
Pharmaceuticals – 0.4%
          Alpharma, Inc., 5.75%, 04/01/2005 (cost $670,000)      $670,000      889,425
               
 
57
EVERGREEN
Small Cap Value Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
     Shares    Value
 
SHORT-TERM INVESTMENTS – 31.2%
 
MUTUAL FUND SHARES – 31.2%
          Evergreen Select Money Market Fund ø    7,005,221    $    7,005,221  
          Navigator Prime Portfolio pp    73,120,500    73,120,500  
          
  
                    Total Short-Term Investments (cost $80,125,721)       80,125,721  
          
  
Total Investments – (cost $302,002,068) – 128.0%    328,323,464  
Other Assets and Liabilities – (28.0%)    (71,824,836 )
          
  
Net Assets – 100.0%    $256,498,628  
           
    
 
 
See Combined Notes to Schedules of Investments.
 
 
EVERGREEN
Value Fund
Schedule of Investments
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                      
 
COMMON STOCKS – 96.7%
 
CONSUMER DISCRETIONARY – 8.6%
 
Distributors – 0.5%
          W.W. Grainger, Inc.       89,650      $      3,530,417
               
 
Household Durables – 0.7%
          Ethan Allen Interiors, Inc.       114,850      4,223,035
               
 
Media – 2.6%
          Comcast Corp., Class A *      108,300      4,636,594
          Viacom, Inc., Class B *      107,742      5,947,358
          Walt Disney Co.      192,800      5,870,760
               
                              16,454,712
               
 
Multi-line Retail – 2.8%
          BJ’s Wholesale Club, Inc. *      417,600      17,852,400
               
 
Specialty Retail – 2.0%
          Lowe’s Co., Inc.      158,650      8,479,842
          Michaels Stores, Inc. *p      103,550      4,154,944
               
                              12,634,786
               
 
CONSUMER STAPLES – 6.7%
 
Beverages – 0.9%
          Pepsico, Inc.       133,100      5,865,717
               
 
Food & Drug Retailing – 1.4%
          Kroger Co. *      364,900      8,958,295
               
 
Food Products – 1.1%
          Hershey Foods Corp.       114,000      6,783,000
               
 
Personal Products – 0.9%
          Avon Products, Inc.      136,300      5,765,490
               
 
Tobacco – 2.4%
          Philip Morris Companies, Inc.      344,300      15,149,200
               
 
ENERGY – 8.8%
 
Energy Equipment & Services – 2.0%
          Cooper Cameron Corp. *      83,000      5,331,090
          Diamond Offshore Drilling, Inc. p      174,400      7,061,456
               
                              12,392,546
               
 
Oil & Gas – 6.8%
          BP Amoco Plc, ADR      91,808      4,728,112
          Exxon Mobil Corp.      237,072      19,949,609
          Kerr-McGee Corp.       100,450      6,495,097
          Texaco, Inc.      95,350      5,854,490
          Unocal Corp.      186,700      6,444,884
               
                              43,472,192
               
 
 
59
EVERGREEN
Value Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                      
 
COMMON STOCKS – continued
 
FINANCIALS – 29.5%
 
Banks – 8.2%
          Bank of America Corp.      122,900      $      6,614,478
          Fifth Third Bancorp      65,000      3,851,250
          FleetBoston Financial Corp.       207,434      8,990,190
          Heller Financial, Inc., Class A      193,000      6,602,530
          PNC Financial Services Group      190,650      14,111,913
          U.S. Bancorp      104,550      3,089,453
          Wachovia Corp.       55,750      3,788,212
          Wells Fargo & Co.      94,350      4,859,968
               
                              51,907,994
               
 
Diversified Financials – 11.9%
          Citigroup, Inc.      294,812      16,500,628
          Fannie Mae      119,550      8,868,219
          Freddie Mac      285,600      17,421,600
          Household International, Inc.      61,850      3,555,138
          J.P. Morgan Chase & Co.       182,545      10,038,149
          John Hancock Financial Services, Inc.      168,100      5,858,285
          Merrill Lynch & Co., Inc.       84,700      6,140,750
          Moodys Corp. p      124,000      3,472,000
          Morgan Stanley Dean Witter & Co.       39,600      3,356,100
               
                              75,210,869
               
 
Insurance – 9.4%
          Ace, Ltd.      119,550      4,423,350
          Allstate Corp.       242,000      9,408,960
          AMBAC Financial Group, Inc.      216,400      12,055,644
          American International Group, Inc.      60,823      5,171,171
          CIGNA Corp.      82,550      9,175,433
          Hartford Financial Services Group, Inc.      83,900      5,159,850
          Loews Corp.       114,800      11,158,560
          Saint Paul Companies, Inc.      66,400      3,188,528
               
                              59,741,496
               
 
HEALTH CARE – 7.5%
 
Health Care Equipment & Supplies – 2.0%
          Becton Dickinson & Co. *      374,050      12,859,839
               
 
Health Care Providers & Services – 0.3%
          Health Management Associates, Inc., Class A *      119,600      1,929,148
               
 
Pharmaceuticals – 5.2%
          American Home Products Corp.       166,550      9,843,105
          Merck & Co., Inc.       122,100      10,034,178
          Mylan Laboratories, Inc.       249,550      5,826,992
          Pharmacia Corp.      80,526      4,511,067
          Schering-Plough Corp.       55,800      2,812,320
               
                              33,027,662
               
 
 
60
EVERGREEN
Value Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                      
 
COMMON STOCKS – continued
 
INDUSTRIALS – 8.4%
 
Aerospace & Defense – 0.5%
          United Technologies Corp.       45,900      $      3,441,582
               
 
Air Freight & Couriers – 1.1%
          United Parcel Service, Inc., Class B      113,100      7,000,890
               
 
Electrical Equipment – 1.6%
          Emerson Electric Co.       88,450      6,722,200
          Molex, Inc. p      75,150      3,264,328
               
                              9,986,528
               
 
Industrial Conglomerates – 4.6%          
          General Electric Co.       121,600      5,593,600
          Tyco International, Ltd.       385,450      23,743,720
               
                              29,337,320
               
 
Road & Rail – 0.6%          
          Union Pacific Corp.       66,650      3,531,117
               
 
INFORMATION TECHNOLOGY – 11.8%          
 
Computers & Peripherals – 3.4%          
          Compaq Computer Corp.       311,150      7,377,367
          International Business Machines Corp.       60,350      6,759,200
          Lexmark International Group, Inc., Class A *      135,200      7,774,000
               
                              21,910,567
               
 
Semiconductor Equipment & Products – 5.0%          
          Altera Corp. *      197,800      5,983,450
          Intel Corp.       59,500      2,201,500
          Microchip Technology, Inc. *      240,300      7,224,019
          Synopsys, Inc. *      140,000      7,280,000
          Teradyne, Inc. *      82,000      3,593,240
          Texas Instruments, Inc.       126,600      5,545,080
               
                              31,827,289
               
 
Software – 3.4%          
          Cognizant Technology Solutions *      162,700      8,012,975
          Parametric Technology Corp. *      429,100      6,382,862
          Symantec Corp. *      137,250      7,051,219
               
                              21,447,056
               
 
MATERIALS – 2.9%          
 
Chemicals – 0.8%          
          Dow Chemical Co.       86,500      2,966,950
          DuPont (E.I.) De Nemours & Co.       47,677      2,083,962
               
                              5,050,912
               
 
Containers & Packaging – 1.5%          
          Pactiv Corp. *      816,750      9,653,985
               
 
 
61
EVERGREEN
Value Fund
Schedule of Investments (continued)
January 31, 2001 (Unaudited)
 
 
       Shares      Value
                        
 
COMMON STOCKS – continued
 
MATERIALS – continued          
 
Paper & Forest Products – 0.6%          
          Georgia-Pacific Corp.       112,000      $      3,461,920  
               
  
 
TELECOMMUNICATION SERVICES – 6.8%          
 
Diversified Telecommunication Services – 6.8%          
          AT&T Corp.       380,849      9,136,567  
          AT&T Wireless Group *p      75,200      1,952,944  
          Qwest Communications International, Inc. *      168,868      7,112,720  
          SBC Communications, Inc.       171,205      8,277,762  
          Verizon Communications      300,000      16,485,000  
               
  
                              42,964,993  
               
  
UTILITIES – 5.7%
 
Electric Utilities – 3.0%
          Consolidated Edison, Inc. p      401,700      14,035,398  
          FPL Group, Inc.       43,300      2,511,400  
          Southern Co.       92,600      2,702,068  
               
  
                 19,248,866  
               
  
Gas Utilities – 2.7%
          NICOR, Inc.       194,700      6,943,002  
          Sempra Energy      376,800      7,675,416  
          Williams Companies, Inc.       53,600      2,097,368  
               
  
                              16,715,786  
               
  
                    Total Common Stocks (cost $511,099,613)                613,337,609  
               
  
SHORT-TERM INVESTMENTS – 6.9%
 
MUTUAL FUND SHARES – 6.9%
 
          Evergreen Select Money Market Fund ø      21,324,158      21,324,158  
          Navigator Prime Portfolio pp      22,285,724      22,285,724  
               
  
                    Total Short-Term Investments (cost $43,609,882)                43,609,882  
               
  
Total Investments – (cost $554,709,495) – 103.6%      656,947,491  
Other Assets and Liabilities – (3.6%)      (22,653,290 )
               
  
Net Assets – 100.0%      $  634,294,201  
               
  
 
See Combined Notes to Schedules of Investments.
 
 
 
Combined Notes to Schedules of Investments
January 31, 2001 (Unaudited)
 
 
Symbol
Description
144A
Security that may be sold to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended. This security has been determined to be liquid under guidelines established by the Board of Trustees.
¤
Security issued in zero coupon form with no periodic interest payments but is acquired at a discount that results in a current yield to maturity. An effective interest rate is applied to recognize interest income daily for the bond. This rate is based on total expected income to be earned over the life of the bond from amortization of discount at acquisition.
*
Non-income producing security.
ø
The advisor of the Fund and the advisor of the money market fund are each a subsidiary of First Union National Bank.
°
Investment in non-controlled affiliate. The Fund owns shares of First Union Corp. with a cost basis of $106,108 at January 31, 2001. The Fund earned $7,680 of income from First Union Corp. during the six months ended January 31, 2001.
p
All or a portion of this security is on loan.
pp
Represents investment of cash collateral received for securities on loan.
 
Summary of Abbreviations
ADR
American Depository Receipts
ACES
Automatically Convertible Equity Securities
DECS
Dividend Enhanced Convertible Stock
FFCB
Federal Farm Credit Bank
FHLB
Federal Home Loan Bank
FHLMC
Federal Home Loan Mortgage Corp.
FNMA
Federal National Mortgage Association
PIES
Premium Income Equity Securities
PRIDES
Preferred Redeemable Increased Dividend Equity Securities
REIT
Real Estate Investment Trust
TECONS
Term Convertible Shares
 
See Combined Notes to Financial Statements.
 
63
EVERGREEN
Growth and Income Funds
Statements of Assets and Liabilities
January 31, 2001 (Unaudited)
 
       Blue Chip
Fund		      Equity
Income
Fund		      Growth
and
Income
Fund		      Small Cap
Value
Fund		      Value
Fund
 
Assets
 
    Identified cost of securities      $825,449,282        $  933,750,235      $1,038,086,955        $302,002,068        $554,709,495  
 
    Net unrealized gains on securities      72,508,908        111,920,034      322,475,730        26,321,396        102,237,996  
 
    Market value of securities      897,958,190        1,045,670,269      1,360,562,685        328,323,464        656,947,491  
 
    Cash      0        0      11,871        0        0  
 
    Receivable for securities sold      13,964,865        3,060,989      7,168,815        2,588,170        0  
 
    Receivable for Fund shares sold      1,420,435        292,090      326,207        538,179        162,038  
 
    Dividends and interest receivable      669,413        4,927,653      1,621,169        174,296        504,039  
 
    Receivable from investment advisor      0        0      0        512        0  
 
    Prepaid expenses and other assets      186,336        47,296      76,584        50,515        18,576  
 
        Total assets      914,199,239        1,053,998,297      1,369,767,331        331,675,136        657,632,144  
 
Liabilities
 
    Payable for securities purchased      9,781,551        15,345,240      4,770,532        1,652,544        0  
 
    Payable for Fund shares redeemed      1,187,816        1,634,857      2,493,759        289,548        908,630  
 
    Payable for securities on loan      11,524,372        21,003,037      123,270,306        73,120,500        22,285,724  
 
    Advisory fee payable      10,893        19,798      26,088        0        7,309  
 
    Distribution Plan expenses payable      15,648        5,541      19,501        3,011        8,269  
 
    Due to other related parties      2,455        2,781      3,433        700        1,740  
 
    Accrued expenses and other liabilities      109,162        184,666      231,626        110,205        126,271  
 
        Total liabilities      22,631,897        38,195,920      130,815,245        75,176,508        23,337,943  
 
Net assets      $891,567,342        $1,015,802,377      $1,238,952,086        $256,498,628        $634,294,201  
 
Net assets represented by
 
    Paid-in capital      $857,718,836        $  869,122,443      $  853,071,580        $248,562,511        $501,808,669  
 
    Undistributed (overdistributed) net investment income
       (loss)		      (1,664,556 )      4,278,203      (4,354,252 )      (142,814 )      (278,227 )
 
    Accumulated net realized gains or losses on securities
       and foreign currency related transactions		      (36,995,846 )      30,481,868      67,759,028        (18,242,465 )      30,525,763  
 
    Net unrealized gains on securities and foreign currency
       related transactions		      72,508,908        111,919,863      322,475,730        26,321,396        102,237,996  
 
Total net assets      $891,567,342        $1,015,802,377      $1,238,952,086        $256,498,628        $634,294,201  
 
Net assets consists of
 
    Class A      $408,743,287        $    68,420,617      $  181,954,407        $  61,345,920        $380,378,637  
 
    Class B      442,670,981        173,698,465      635,607,004        79,330,928        201,573,123  
 
    Class C      23,511,337        11,635,308      22,543,472        15,252,308        4,736,095  
 
    Class Y      16,641,737        762,047,987      398,847,203        98,960,502        47,606,346  
 
    Class IS      0        0      0        1,608,970        0  
 
Total net assets      $891,567,342        $1,015,802,377      $1,238,952,086        $256,498,628        $634,294,201  
 
Shares outstanding
 
    Class A      13,828,492        2,974,694      6,702,571        3,311,060        18,869,402  
 
    Class B      15,341,764        7,617,724      24,113,399        4,347,425        10,039,181  
 
    Class C      812,662        510,418      855,148        837,081        236,035  
 
    Class Y      565,805        33,115,291      14,576,224        5,322,709        2,360,627  
 
    Class IS      0        0      0        86,674        0  
 
Net asset value per share
 
    Class A      $            29.56        $              23.00      $              27.15        $            18.53        $            20.16  
 
    Class A—Offering price (based on sales charge of
                           4.75%)		      $            31.03        $              24.15      $              28.50        $            19.45        $            21.17  
 
    Class B      $            28.85        $              22.80      $              26.36        $            18.25        $            20.08  
 
    Class C      $            28.93        $              22.80      $              26.36        $            18.22        $            20.07  
 
    Class Y      $            29.41        $              23.01      $              27.36        $            18.59        $            20.17  
 
    Class IS      —        —      —        $            18.56        —  
 
See Combined Notes to Financial Statements.
 
 
EVERGREEN
Growth and Income Funds
Statements of Operations
Six Months Ended January 31, 2001 (Unaudited)
 
       Blue Chip
Fund		      Equity
Income
Fund		      Growth and
Income
Fund		      Small Cap
Value
Fund		      Value
Fund
 
Investment income
 
    Dividends (net of foreign withholding taxes of $29,697,
       $82,881, $21,747, $161 and $10,787, respectively)		      $  3,864,784        $  20,187,986        $  6,045,519        $  1,509,867        $  5,087,201  
 
    Interest      1,945,832        5,900,703        1,904,217        352,175        1,190,941  
 
Total investment income      5,810,616        26,088,689        7,949,736        1,862,042        6,278,142  
 
Expenses
 
    Advisory fee      2,104,715        4,249,869        5,541,650        1,039,619        1,348,536  
 
    Distribution Plan expenses      3,043,489        1,008,194        3,764,162        489,820        1,518,010  
 
    Administrative services fees      480,142        500,958        677,440        115,516        321,080  
 
    Transfer agent fee      1,475,862        869,022        1,770,103        332,023        776,410  
 
    Trustees’ fees and expenses      11,198        12,310        16,320        2,761        7,902  
 
    Printing and postage expenses      73,330        72,315        123,698        14,862        58,102  
 
    Custodian fee      130,484        128,122        167,461        38,243        83,581  
 
    Registration and filing fees      132,220        36,871        53,129        23,356        27,381  
 
    Professional fees      10,241        9,745        19,415        7,876        9,869  
 
    Other      25,601        9,219        127,245        124        46,797  
 
        Total expenses      7,487,282        6,896,625        12,260,623        2,064,200        4,197,668  
 
        Less: Expense reductions      (34,307 )      (28,836 )      (32,650 )      (15,564 )      (16,311 )
 
                  Fee waivers      0        (113,151 )      0        (57,110 )      0  
 
        Net expenses      7,452,975        6,754,638        12,227,973        1,991,526        4,181,357  
 
    Net investment income (loss)      (1,642,359 )      19,334,051        (4,278,237 )      (129,484 )      2,096,785  
 
Net realized and unrealized gains or losses on securities and
   foreign currency related transactions
 
    Net realized gains or losses on:                         
 
        Securities      (29,087,164 )      42,230,779        74,338,989        21,830,565        45,404,955  
 
        Foreign currency related transactions      0        26,963        0        0        0  
 
    Net realized gains or losses on securities and foreign currency
       related transactions		      (29,087,164 )      42,257,742        74,338,989        21,830,565        45,404,955  
 
    Net change in unrealized gains or losses on securities and
       foreign currency related transactions		      (55,259,797 )      55,501,270         (62,411,192 )      21,870,939        9,981,831  
 
    Net realized and unrealized gains or losses on securities and
       foreign currency related transactions		      (84,346,961 )      97,759,012        11,927,797        43,701,504        55,386,786  
 
    Net increase (decrease) in net assets resulting from
       operations		      $(85,989,320 )      $117,093,063        $  7,649,560        $43,572,020        $57,483,571  
 
See Combined Notes to Financial Statements.
 
 
EVERGREEN
Growth and Income Funds
Statements of Changes in Net Assets
Six Months Ended January 31, 2001 (Unaudited)
 
       Blue Chip
Fund		      Equity
Income
Fund		      Growth and
Income
Fund		      Small Cap
Value
Fund		      Value
Fund
 
Operations                         
 
    Net investment income (loss)      $    (1,642,359 )      $    19,334,051        $      (4,278,237 )      $      (129,484 )      $    2,096,785  
 
    Net realized gains or losses on securities and foreign
       currency related transactions		      (29,087,164 )      42,257,742        74,338,989        21,830,565        45,404,955  
 
    Net change in unrealized gains or losses on securities
       and foreign currency related transactions		      (55,259,797 )      55,501,270        (62,411,192 )      21,870,939        9,981,831  
 
        Net increase (decrease) in net assets resulting from
           operations		      (85,989,320 )      117,093,063        7,649,560        43,572,020        57,483,571  
 
Distributions to shareholders from                         
 
    Net investment income                         
 
        Class A      0        (1,183,759 )      0        0        (1,791,112 )
 
        Class B      0        (2,645,807 )      0        0        (324,959 )
 
        Class C      0        (142,535 )      0        0        (6,044 )
 
        Class Y      0        (14,982,181 )      0        0        (311,246 )
 
        Class IS      0        0        0        0        0  
 
    Net realized gains                         
 
        Class A      (30,030,298 )      (25,616 )      (22,589,503 )      0        (38,439,383 )
 
        Class B      (32,937,537 )      (71,517 )      (79,624,536 )      0        (20,674,385 )
 
        Class C      (1,602,153 )      (4,019 )      (2,871,558 )      0        (401,539 )
 
        Class Y      (1,115,150 )      (306,197 )      (50,903,031 )      0        (5,200,013 )
 
        Class IS      0        0        0        0        0  
 
        Total distributions to shareholders      (65,685,138 )      (19,361,631 )      (155,988,628 )      0        (67,148,681 )
 
Capital share transactions                         
 
    Proceeds from shares sold      85,096,026        13,588,612        39,280,688        25,938,894        15,014,616  
 
    Payment for shares redeemed      (85,999,289 )      (95,655,122 )      (224,975,885 )      (37,541,631 )      (81,921,015 )
 
    Net asset value of shares issued in reinvestment of
       distributions		      61,739,057        17,003,594        149,680,759        0        64,468,304  
 
        Net increase (decrease) in net assets resulting from
           capital share transactions		      60,835,794        (65,062,916 )      (36,014,438 )      (11,602,737 )      (2,438,095 )
 
            Total increase (decrease) in net assets      (90,838,664 )      32,668,516        (184,353,506 )      31,969,283        (12,103,205 )
 
Net assets                         
 
    Beginning of period      982,406,006        983,133,861        1,423,305,592        224,529,345        646,397,406  
 
    End of period      $891,567,342        $1,015,802,377        $1,238,952,086        $256,498,628        $634,294,201  
 
Undistributed (overdistributed) net investment income
   (loss)		      $    (1,664,556 )      $      4,278,203        $      (4,354,252 )      $      (142,814 )      $      (278,227 )
 
See Combined Notes to Financial Statements.
 
 
EVERGREEN
Growth and Income Funds
Statements of Changes in Net Assets
Year Ended July 31, 2000
 
       Blue Chip
Fund		      Equity
Income
Fund		      Growth
and
Income
Fund		      Small Cap
Value
Fund		      Value
Fund
 
Operations                         
 
    Net investment income (loss)      $    (3,260,260 )      $    40,516,190        $      (9,284,971 )      $        160,492        $    5,245,480  
 
    Net realized gains on securities and foreign currency
       related transactions		      78,896,040        17,710,570        213,086,992        919,228        67,518,025  
 
    Net change in unrealized gains or losses on
       securities and foreign currency related
       transactions		      8,810,873        (52,654,764 )      (110,234,837 )      (8,734,036 )      (113,133,774 )
 
        Net increase (decrease) in net assets resulting
           from operations		      84,446,653        5,571,996        93,567,184        (7,654,316 )      (40,370,269 )
 
Distributions to shareholders from                         
 
    Net investment income                         
 
        Class A      0        (1,517,733 )      0        (139,162 )      (3,741,091 )
 
        Class B      0        (6,095,230 )      0        (69,660 )      (485,194 )
 
        Class C      0        (90,224 )      0        (14,240 )      (7,481 )
 
        Class Y      0        (38,517,092 )      0        (163,338 )      (1,024,452 )
 
        Class IS      0        0        0        0        0  
 
    Net realized gains                         
 
        Class A      (28,109,712 )      (1,256,663 )      (4,598,084 )      0        (55,282,862 )
 
        Class B      (23,321,638 )      (6,008,968 )      (16,932,536 )      0        (39,983,154 )
 
        Class C      (288,873 )      (93,940 )      (628,619 )      0        (563,611 )
 
        Class Y      (176,566 )      (30,650,070 )      (11,517,842 )      0        (14,849,499 )
 
        Class IS      0        0        0        0        0  
 
 
        Total distributions to shareholders      (51,896,789 )      (84,229,920 )      (33,677,081 )      (386,400 )      (115,937,344 )
 
Capital share transactions                         
 
    Proceeds from shares sold      436,629,204        26,409,845        264,009,670        42,945,025        34,948,945  
 
    Payment for shares redeemed       (175,543,904 )       (196,098,304 )       (744,771,114 )       (129,076,521 )       (275,384,886 )
 
    Net asset value of shares issued in reinvestment of
       distributions		      47,330,751        75,437,694        31,956,469        262,310        111,097,660  
 
    Net asset value of shares issued in acquisition      0        85,383,028        0        68,433,213        0  
 
        Net increase (decrease) in net assets resulting
           from capital share transactions		      308,416,051        (8,867,737 )      (448,804,975 )      (17,435,973 )      (129,338,281 )
 
           Total increase (decrease) in net assets      340,965,915        (87,525,661 )      (388,914,872 )      (25,476,689 )      (285,645,894 )
 
Net assets                         
 
    Beginning of period      641,440,091         1,070,659,522        1,812,220,464        250,006,034        932,043,300  
 
    End of period      $982,406,006        $  983,133,861        $1,423,305,592        $224,529,345        $646,397,406  
 
Undistributed (overdistributed) net investment income
   (loss)		      $        (22,197 )      $      3,928,327        $          (76,015 )      $        (13,330 )      $          58,349  
 
See Combined Notes to Financial Statements.
 
 
Combined Notes to Financial Statements (Unaudited)
 
1. ORGANIZATION
 
The Evergreen Growth and Income Funds consist of Evergreen Blue Chip Fund (“Blue Chip Fund”), Evergreen Equity Income Fund (“Equity Income Fund”), Evergreen Growth and Income Fund (“Growth and Income Fund”), Evergreen Small Cap Value Fund (“Small Cap Value Fund”) and Evergreen Value Fund (“Value Fund”), (collectively, the “Funds”). Each Fund is a diversified series of Evergreen Equity Trust (the “Trust”), a Delaware business trust organized on September 18, 1997. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”).
 
The Funds offer Class A, Class B, Class C and Class Y shares. Additionally, Small Cap Value Fund offers Institutional Service shares (“Class IS”). Class A shares are sold with a front-end sales charge. Class B and Class C shares are sold without a front-end sales charge, but pay a higher ongoing distribution fee than Class A and are sold subject to a contingent deferred sales charge that is payable upon redemption and decreases depending on how long the shares have been held. Class Y shares are sold at net asset value and are not subject to contingent deferred sales charges or distribution fees. Class IS shares are sold without a front-end sales charge or a contingent deferred sales charge, but pay an ongoing distribution fee.
 
2. SIGNIFICANT ACCOUNTING POLICIES
 
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The policies are in conformity with generally accepted accounting principles, which require management to make estimates and assumptions that affect amounts reported herein. Actual results could differ from these estimates.
 
A. Valuation of Securities
Listed equity securities are valued at the last sale price reported on the national securities exchange, where the securities are principally traded.
 
Portfolio debt securities acquired with more than 60 days to maturity are valued at prices obtained from an independent pricing service which takes into consideration such factors as similar security prices, yields, maturities, liquidity and ratings. Securities for which valuations are not available from an independent pricing service may be valued by brokers which use prices provided by market makers or estimates of market value obtained from yield data relating to investment or securities with similar characteristics.
 
Short-term securities with remaining maturities of 60 days or less at the time of purchase are valued at amortized cost, which approximates market value.
 
Investments in other mutual funds are valued at net asset value. Securities for which market quotations are not available are valued at fair value as determined in good faith, according to procedures approved by the Board of Trustees.
 
B. Repurchase Agreements
Securities pledged as collateral for repurchase agreements are held by the custodian bank or in a segregated account in the Fund’s name until the agreements mature. Collateral for certain tri-party repurchase agreements is held at the counterparty’s custodian in a segregated account for the benefit of the Fund and the counterparty. Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal. However, in the event of default or bankruptcy by the other party to the agreement, retention of the collateral may be subject to legal proceedings. Each Fund will only enter into repurchase agreements with banks and other financial institutions, which are deemed by the investment advisor to be creditworthy pursuant to guidelines established by the Board of Trustees.
 
C. Foreign Currency Translation
All assets and liabilities denominated in foreign currencies are translated in U.S. dollar amounts at the date of valuation. Purchases and sales of portfolio securities and income items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Funds do not separately account for that portion of the results of operations resulting from changes in foreign exchange rates on investments and the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses on securities.
 
D. Foreign Currency Contracts
A foreign currency contract is an obligation to purchase or sell a specific currency for an agreed-upon price at a future date. The Funds enter into foreign currency contracts to facilitate transactions in foreign-denominated securities and to attempt to minimize the risk to the Funds from adverse changes in the relationship between currencies. Foreign currency contracts are recorded at the forward rate and marked- to-market daily. When the contracts are closed, realized gains and losses arising from such transactions are recorded as realized gains or losses on foreign currency related transactions. The Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the foreign currency changes unfavorably.
 
E. Securities Lending
The Funds may lend their securities to certain qualified brokers in order to earn additional income. The Funds receive compensation in the form of fees or interest earned on the investment of any cash collateral received. The Funds receive collateral in the form of cash or securities with a market value at least equal to the market value of the securities on loan, including accrued interest. In the event of default or bankruptcy by the borrower, the Funds could experience delays and costs in recovering the loaned securities or in gaining access to the collateral.
 
F. Security Transactions and Investment Income
Security transactions are recorded no later than one business day after the trade date. Realized gains and losses are computed using the specific cost of the security sold. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. Dividend income is recorded on the ex-dividend date or in the case of some foreign securities, on the date when the Fund is made aware of the dividend. Foreign income and capital gains realized on some securities may be subject to foreign taxes, which are accrued as applicable.
 
G. Federal Taxes
Each Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income, including any net capital gains (which have been offset by available capital loss carryovers). Accordingly, no provision for federal taxes is required.
 
H. Distributions
Distributions to shareholders are recorded on the ex-dividend date. Distributions from net realized gains are recorded on the ex-dividend date.
 
Such distributions are determined in conformity with income tax regulations, which may differ from generally accepted accounting principles.
 
I. Class Allocations
Income, common expenses and realized and unrealized gains and losses are allocated to the classes based on the relative net assets of each class. Distribution and service fees, if any, are calculated daily at the class level based on the appropriate net assets of each class and the specific expense rates applicable to each class.
 
3. ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
 
On November 1, 2000, the Funds’ Board of Trustees approved the transfer of the investment advisory contracts with Evergreen Asset Management Corp. to Evergreen Investment Management Company, LLC (“EIMC”). Under Securities and Exchange Commission rules and no-action letters, this transfer did not require shareholder approval as the parties involved were all wholly owned subsidiaries of and controlled by First Union Corporation (“First Union”) and neither the fees nor services were changed.
 
69
Combined Notes to Financial Statements (Unaudited) (continued)
 
 
EIMC, an indirect, wholly-owned subsidiary of First Union, is the investment advisor to the Funds and is paid a management fee that is calculated and paid daily. The management fee is computed by applying percentage rates, that decline as net assets increase, to the Fund’s average daily net assets as identified below:
 
       Management Fee
Rate Starts at:		      and Declines as Net
Assets Increase to:
Blue Chip Fund      0.61%      0.26%
Equity Income Fund      0.725%      0.675%
Growth and Income Fund      0.775%      0.675%
Small Cap Value Fund      0.90%      0.70%
 
Prior to January 1, 2001 Equity Income Fund and Growth and Income Fund each paid the investment advisor a management fee which started at 0.90% and declined to 0.70% as net assets increased.
 
EIMC is entitled to receive from the Value Fund an annual fee equal to 0.42% of the average daily net assets of the Fund.
 
During the six months ended January 31, 2001, the amount of investment advisory fees waived by the investment advisors and the impact on each Fund’s annualized expense ratio represented as a percentage of its average daily net assets were as follows:
 
       Fees
Waived		      % of Average
Daily Net Assets
     
Equity Income Fund      $113,151      0.02%
Small Cap Value Fund          57,110      0.05%
 
Evergreen Investment Services, Inc. (“EIS”), an indirect, wholly owned subsidiary of First Union, is the administrator to the Funds. As administrator, EIS provides the Funds with facilities, equipment and personnel and is paid an administrative fee of 0.10% of each Fund’s average daily net assets.
 
Evergreen Service Company, LLC (“ESC”), an indirect, wholly owned subsidiary of First Union, is the transfer and dividend disbursing agent for the Funds.
 
Officers of the Funds and affiliated Trustees receive no compensation directly from the Funds.
 
4. DISTRIBUTION PLANS
 
Evergreen Distributor, Inc. (“EDI”), a wholly owned subsidiary of BISYS Fund Services, Inc., serves as principal underwriter to the Funds.
 
Each Fund has adopted Distribution Plans, as allowed by Rule 12b-1 of the 1940 Act, for each class of shares, except Class Y. Distribution plans permit a Fund to compensate its principal underwriter for costs related to selling shares of the Fund and for various other specified services. These costs consist primarily of commissions and service fees to broker-dealers who sell shares of the Fund. Under the Distribution Plans, each class incurs distribution fees at the following annual rates:
 
       Average Daily
Net Assets
Class A      0.25 %
Class B      1.00  
Class C      1.00  
Class IS      0.25  
 
Of the above amounts, each share class may pay under its Distribution Plan a maximum service fee of 0.25% of the average daily net assets of the class to pay for shareholder service fees. Distribution Plan expenses are calculated and paid daily.
 
70
Combined Notes to Financial Statements (Unaudited) (continued)
 
 
During the six months ended January 31, 2001, amounts paid or accrued to EDI pursuant to each Fund’s Class A, Class B, Class C and Class IS Distribution Plans were as follows:
 
     Class A    Class B    Class C    Class IS
Blue Chip Fund    $558,278    $2,367,269    $117,942    —
Equity Income Fund    79,544    880,279    48,371    —
Growth and Income Fund    247,501    3,393,936    122,725    —
Small Cap Value Fund    65,022    357,243    65,742    $1,813
Value Fund    476,163    1,022,333    19,514    —
 
With respect to Class B and Class C shares, the principal underwriter may pay distribution fees greater than the allowable annual amounts each Fund is permitted to pay under the Distribution Plans.
 
Each of the Distribution Plans may be terminated at any time by vote of the Independent Trustees or by vote of a majority of the outstanding voting shares of the respective class.
 
5. ACQUISITIONS
 
On July 21, 2000, Evergreen Income and Growth Fund acquired substantially all the assets and assumed certain liabilities of Evergreen Equity Income Fund in exchange for Class A, Class B, Class C and Class Y shares of Income and Growth Fund, which was immediately renamed Evergreen Equity Income Fund.
 
On July 21, 2000, Small Cap Value Fund acquired substantially all the assets and assumed certain liabilities of Evergreen Select Small Company Value Fund in exchange for Class Y and Class IS shares of Small Cap Value Fund.
 
These acquisitions were accomplished by a tax-free exchange of the respective shares of each Fund. The value of net assets acquired, number of shares issued, unrealized appreciation acquired and the aggregate net assets of each Fund immediately after the acquisition were as follows:
 
Acquiring Fund      Acquired Fund      Value of Net
Assets
Acquired		      Number of
Shares
Issued		      Unrealized
Appreciation/(Depreciation)		      Net Assets after
Acquisition
     Evergreen Income and
     Growth Fund*		      Evergreen Equity Income Fund      $85,383,028      4,043,871      $17,264,426      $1,005,299,970
     Small Cap Value Fund      Evergreen Select Small Company
Value Fund		      68,433,213      4,390,281      4,468,589      228,024,824
*
Immediately following the July 21, 2000 acquisition, the Evergreen Income and Growth Fund was renamed the Evergreen Equity Income Fund.
 
 
71
Combined Notes to Financial Statements (Unaudited) (continued)
 
6. CAPITAL SHARE TRANSACTIONS
 
The Funds have an unlimited number of shares of beneficial interest with $0.001 par value authorized. Shares of beneficial interest of the Funds are currently divided into Class A, Class B, Class C, Class Y and/or Class IS. Transactions in shares of the Funds were as follows:
 
BLUE CHIP FUND
 
       Six Months Ended
January 31, 2001
      Year Ended
July 31, 2000
       Shares      Amount      Shares      Amount
Class A Shares                    
Shares sold      746,701        $24,091,244        3,346,220        $117,138,997  
Automatic conversion of Class B shares to Class A shares      25,169        723,232        826,056        29,824,674  
Shares redeemed      (1,276,765 )       (41,526,264 )      (3,096,690 )       (107,656,914 )
Shares issued in reinvestment of distributions      904,479        27,052,996        721,250        24,746,076  
Net increase      399,584        10,341,208        1,796,836        64,052,833  
Class B Shares                    
Shares sold      1,493,336        48,416,811        8,193,633        281,540,924  
Automatic conversion of Class B shares to Class A shares      (25,779 )      (723,232 )      (826,056 )      (29,824,874 )
Shares redeemed      (1,202,249 )       (38,016,131 )      (1,882,548 )      (63,868,985 )
Shares issued in reinvestment of distributions      1,095,840        32,031,394        654,105        22,134,919  
Net increase      1,361,148        41,708,842        6,139,134        209,982,184  
Class C Shares                    
Shares sold      218,249        7,021,272        598,381        20,868,986  
Shares redeemed      (95,048 )      (3,013,553 )      (60,484 )      (2,098,642 )
Shares issued in reinvestment of distributions      52,507        1,539,517        8,052        273,190  
Net increase      175,708        5,547,236        545,949        19,043,534  
Class Y Shares                    
Shares sold      175,413        5,566,699        486,708        17,080,297  
Shares redeemed      (108,781 )      (3,443,341 )      (54,412 )      (1,919,363 )
Shares issued in reinvestment of distributions      37,497        1,115,150        5,187        176,566  
Net increase      104,129        3,238,508        437,483        15,337,500  
Net increase                  $60,835,794                    $308,416,051  
 
EQUITY INCOME FUND
 
       Six Months Ended
January 31, 2001
      Year Ended
July 31, 2000
       Shares      Amount      Shares      Amount
Class A Shares                    
Shares sold      200,125        $  4,348,761        407,360        $    8,852,655  
Automatic conversion of Class B shares to Class A shares      118,473        2,619,369        197,493        4,409,729  
Shares redeemed      (400,183 )      (8,687,859 )      (863,498 )      (18,764,153 )
Shares issued in reinvestment of distributions      51,106        1,093,788        121,410        2,614,701  
Shares issued in acquisition of Evergreen Equity Income Fund      0        0        1,560,246        33,115,497  
Net increase (decrease)      (30,479 )      (625,941 )      1,423,011        30,228,429  
Class B Shares                    
Shares sold      98,376        2,135,815        199,032        4,300,452  
Automatic conversion of Class B shares to Class A shares      (119,446 )      (2,619,369 )      (199,139 )      (4,409,728 )
Shares redeemed      (1,083,378 )      (23,382,825 )      (2,342,320 )      (50,318,020 )
Shares issued in reinvestment of distributions      117,034        2,484,644        535,785        11,442,783  
Shares issued in acquisition of Evergreen Equity Income Fund      0        0        2,138,594        45,007,185  
Net increase (decrease)      (987,414 )      (21,381,735 )      331,952        6,022,672  
Class C Shares                    
Shares sold      120,575        2,640,254        25,324        550,745  
Shares redeemed      (56,493 )      (1,226,486 )      (43,443 )      (929,456 )
Shares issued in reinvestment of distributions      5,610        119,056        7,751        165,465  
Shares issued in acquisition of Evergreen Equity Income Fund      0        0        339,299        7,138,634  
Net increase      69,692        1,532,824        328,931        6,925,388  
Class Y Shares                    
Shares sold      204,064        4,463,782        583,352        12,705,993  
Shares redeemed      (2,847,687 )      (62,357,952 )      (5,810,791 )       (126,086,676 )
Shares issued in reinvestment of distributions      621,707        13,306,106        2,842,240        61,214,745  
Shares issued in acquisition of Evergreen Equity Income Fund      0        0        5,732        121,712  
Net decrease      (2,021,916 )      (44,588,064 )      (2,379,467 )      (52,044,226 )
Net decrease                  $(65,062,916 )                  $    (8,867,737 )
 
72
Combined Notes to Financial Statements (Unaudited) (continued)
 
GROWTH AND INCOME FUND
 
       Six Months Ended
January 31, 2001
      Year Ended
July 31, 2000
       Shares      Amount      Shares      Amount
Class A Shares
Shares sold      521,079        $  15,293,575        5,994,860        $176,810,399  
Automatic conversion of Class B shares to Class A shares      33,194        888,087        434,475        13,908,389  
Shares redeemed      (1,426,004 )      (42,104,703 )      (8,296,875 )      (246,957,350 )
Shares issued in reinvestment of distributions      828,798        21,714,512        146,826        4,392,976  
Net decrease      (42,933 )      (4,208,529 )      (1,720,714 )      (51,845,586 )
Class B Shares
Shares sold      252,766        7,147,201        902,060        26,704,700  
Automatic conversion of Class B shares to Class A shares      (34,163 )      (888,087 )      (434,475 )      (13,908,389 )
Shares redeemed      (2,626,014 )      (76,301,643 )      (8,103,184 )      (240,218,978 )
Shares issued in reinvestment of distributions      3,023,804        77,046,538        544,457        16,017,281  
Net increase (decrease)      616,393        7,004,009        (7,091,142 )      (211,405,386 )
Class C Shares
Shares sold      28,926        827,030        171,225        5,093,534  
Shares redeemed      (140,683 )      (4,073,671 )      (581,170 )      (17,172,838 )
Shares issued in reinvestment of distributions      106,671        2,717,984        16,567        487,415  
Net decrease      (5,086 )      (528,657 )      (393,378 )      (11,591,889 )
Class Y Shares
Shares sold      543,164        16,012,882        1,835,436        55,401,037  
Shares redeemed      (3,462,449 )       (102,495,868 )      (7,923,847 )      (240,421,948 )
Shares issued in reinvestment of distributions      1,825,823        48,201,725        368,014        11,058,797  
Net decrease      (1,093,462 )      (38,281,261 )      (5,720,397 )      (173,962,114 )
Net decrease                  $  (36,014,438 )                  $(448,804,975 )
 
SMALL CAP VALUE FUND
 
       Six Months Ended
January 31, 2001
      Year Ended
July 31, 2000 (a)
     Shares    Amount    Shares    Amount
Class A Shares
Shares sold      721,008        $12,195,265        1,914,086        $28,692,368  
Automatic conversion of Class B shares to Class A shares      0        0        91,548        1,344,291  
Shares redeemed      (537,184 )      (8,994,155 )      (2,706,511 )      (40,096,745 )
Shares issued in reinvestment of distributions      0        0        8,995        134,298  
Net increase (decrease)      183,824        3,201,110        (691,882 )      (9,925,788 )
Class B Shares
Shares sold      303,265        5,103,596        463,178        6,773,147  
Automatic conversion of Class B shares to Class A shares      0        0        (92,207 )      (1,344,291 )
Shares redeemed      (517,180 )      (8,370,456 )      (2,972,260 )      (43,544,988 )
Shares issued in reinvestment of distributions      0        0        4,387        65,209  
Net decrease      (213,915 )      (3,266,860 )      (2,596,902 )      (38,050,923 )
Class C Shares
Shares sold      105,861        1,788,449        164,725        2,409,075  
Shares redeemed      (100,008 )      (1,614,330 )      (811,365 )      (11,836,726 )
Shares issued in reinvestment of distributions      0        0        718        10,680  
Net increase (decrease)      5,853        174,119        (645,922 )      (9,416,971 )
Class Y Shares
Shares sold      411,102        6,851,526        337,149        5,054,124  
Shares redeemed      (1,108,607 )       (18,543,728 )      (2,277,556 )      (33,598,062 )
Shares issued in reinvestment of distributions      0        0        3,491        52,123  
Shares issued in acquisition of Evergreen Select Small Company Value Fund      0        0        4,303,541        67,081,573  
Net increase (decrease)      (697,505 )       (11,692,202 )      2,366,625        38,589,758  
Class IS Shares
Shares sold      3        58        1,070        16,311  
Shares redeemed      (1,139 )      (18,962 )      0        0  
Shares issued in reinvestment of distributions      0        0        0        0  
Shares issued in acquisition of Evergreen Select Small Company Value Fund      0        0        86,740        1,351,640  
Net increase (decrease)      (1,136 )      (18,904 )      87,810        1,367,951  
Net decrease                  $(11,602,737 )                  $(17,435,973 )
(a)
For Class IS Shares, for the period from June 30, 2000 (commencement of class operations) to July 31, 2000.
 
73
Combined Notes to Financial Statements (Unaudited)    (continued)
 
VALUE FUND
 
       Six Months Ended
January 31, 2001
      Year Ended
July 31, 2000
       Shares      Amount      Shares      Amount
Class A Shares
Shares sold      492,070        $  9,788,998        759,200        $  16,395,105  
Automatic conversion of Class B shares to Class A shares      0        0        2,053,494        42,511,579  
Shares redeemed      (2,003,073 )       (41,736,372 )      (5,757,644 )      (121,536,123 )
Shares issued in reinvestment of distributions      2,024,108         38,410,017        2,640,004        56,176,037  
Net increase (decrease)      513,105        6,462,643        (304,946 )      (6,453,402 )
Class B Shares
Shares sold      141,565        2,848,580        448,052        9,953,105  
Automatic conversion of Class B shares to Class A shares      0        0        (2,058,678 )      (42,511,579 )
Shares redeemed      (1,196,339 )       (24,861,793 )      (3,600,050 )      (75,831,400 )
Shares issued in reinvestment of distributions      1,081,900        20,406,586        1,850,597        39,240,340  
Net increase (decrease)      27,126        (1,606,627 )      (3,360,079 )      (69,149,534 )
Class C Shares
Shares sold      68,617        1,362,751        36,351        768,645  
Shares redeemed      (23,445 )      (475,700 )      (78,554 )      (1,655,240 )
Shares issued in reinvestment of distributions      20,113        379,154        25,959        549,897  
Net increase (decrease)      65,285        1,266,205        (16,244 )      (336,698 )
Class Y Shares
Shares sold      48,389        1,014,287        385,384        7,832,090  
Shares redeemed      (716,787 )       (14,847,150 )      (3,642,618 )      (76,362,123 )
Shares issued in reinvestment of distributions      277,998        5,272,547        710,636        15,131,386  
Net decrease      (390,400 )      (8,560,316 )      (2,546,598 )      (53,398,647 )
Net decrease                  $  (2,438,095 )                  $(129,338,281 )
 
7. SECURITIES TRANSACTIONS
 
Cost of purchases and proceeds from sales of investment securities (excluding short-term securities) were as follows for the six months ended January 31, 2001:
 
       Cost of Purchases      Proceeds from Sales
Blue Chip Fund      $1,049,043,874      $1,054,866,407
Growth and Income Fund      189,203,259      384,617,118
Small Cap Value Fund      126,317,619      129,676,751
Value Fund      439,283,908      477,929,180
 
For the Equity Income Fund, cost of purchases of U.S. government and non-U.S. government securities were $0 and $385,659,207, respectively; the Fund’s proceeds from sale of U.S. government and non-U.S. government securities were $2,876,779 and $423,971,282, respectively, for the six months ended January 31, 2001.
 
On January 31, 2001 the composition of unrealized appreciation and depreciation on securities based on the aggregate cost of securities for federal income tax purposes were as follows:
 
       Tax Cost      Gross
Unrealized
Appreciation		      Gross
Unrealized
Depreciation		      Net Unrealized
Appreciation
Blue Chip Fund      $  825,449,282      $  96,548,310      $(24,039,402 )      $  72,508,908
Equity Income Fund      933,750,235      164,339,517      (52,419,483 )      111,920,034
Growth and Income Fund       1,038,086,955       401,214,501       (78,738,771 )       322,475,730
Small Cap Value Fund      302,002,068      42,113,725      (15,792,329 )      26,321,396
Value Fund      554,709,495      108,673,421      (6,435,425 )      102,237,996
 
As of July 31, 2000, Small Cap Value Fund had capital loss carryovers for federal income tax purposes of $3,027,415, $15,263,469 and $20,599,292, expiring in July 2006, 2007 and 2008, respectively. Part of the capital loss carryovers were assumed as a result of an acquisition. As such, $17,207,625 is subject to certain limitations pursuant to Federal tax regulations.
 
Capital losses incurred after October 31 within a Fund’s fiscal year are deemed to arise on the first business day of the Fund’s following fiscal year. As of July 31, 2000, Small Cap Value Fund incurred and elected to defer post October losses of $1,123,785.
 
 
74
Combined Notes to Financial Statements (Unaudited) (continued)
 
The following Funds loaned securities during the six months ended January 31, 2001 to certain brokers. At January 31, 2001, the value of the securities on loan, the value of collateral (including accrued interest) and the amount of income earned from securities lending were as follows:
 
       Value of
Securities on
Loan		      Value of
Collateral		      Securities
Lending
Income
Blue Chip Fund      $  11,094,548      $  11,524,372      $  36,810
Equity Income Fund      19,997,330      21,003,037      44,417
Growth and Income Fund       118,073,342       123,270,306       186,424
Small Cap Value Fund      70,217,745      73,120,500      27,337
Value Fund      21,568,451      22,285,724      41,975
 
8. EXPENSE REDUCTIONS
 
Through expense offset arrangements with ESC and their custodian and brokerage/service arrangements with specific brokers, a portion of the fund expenses have been reduced. The amount of expense reductions received by each Fund and the impact of the total expense reductions on each Fund’s annualized expense ratio represented as a percentage of its average net assets were as follows:
 
       Expense
Offset
Arrangements		      Brokerage
Transactions		      Total Expense
Reductions		      % of Average
Daily Net
Assets
Blue Chip Fund      $21,834      $12,473      $34,307      0.01 %
Equity Income Fund      28,836      0      28,836      0.02 %
Growth and Income Fund      32,650      0      32,650      0.00 %
Small Cap Value Fund      6,780      8,784      15,564      0.01 %
Value Fund      16,311      0      16,311      0.01 %
 
9. DEFERRED TRUSTEES’ FEES
 
Each Independent Trustee of each Fund may defer any or all compensation related to performance of their duties as Trustees. The Trustees’ deferred balances are allocated to deferral accounts, which are included in the accrued expenses for the Funds. The investment performance of the deferral accounts are based on the investment performance of certain Evergreen Funds. Any gains earned or losses incurred in the deferral accounts are reported in the Fund’s Trustees’ fees and expenses. At the election of the Trustees, the deferral account will be paid either in one lump sum or in quarterly installments for up to ten years.
 
10. FINANCING AGREEMENT
 
The Funds and certain other Evergreen Funds share in a $775 million unsecured revolving credit commitment to temporarily finance the purchase or sale of securities for prompt delivery, including funding redemption of their shares, as permitted by each Fund’s borrowing restrictions. Borrowings under this facility bear interest at 0.50% per annum above the Federal Funds rate. All of the Funds are charged an annual commitment fee of 0.10% of the unused balance, which is allocated pro rata. For its assistance in arranging the financing agreement, First Union Capital Markets Corp. was paid a one-time arrangement fee of $150,000, which was charged to the Funds and also allocated pro rata.
 
During the six months ended January 31, 2001, the Growth and Income Fund had average borrowings outstanding of $932,587 at a rate of 7.05% and paid interest of $33,144.
 
11. CONCENTRATION OF RISK
 
The Funds may invest a substantial portion of assets in an industry or sector and, therefore, may be more affected by changes in that industry or sector than would be a comparable mutual fund that is not heavily weighted in any industry or sector.
 
12. NEW ACCOUNTING PRONOUNCEMENT
 
In November 2000, the AICPA issued a revised Audit and Accounting Guide, Audits of Investment Companies, which is effective for fiscal years beginning after December 15, 2000. Among other things, the revised Guide amends certain accounting practices and disclosures presently used, such as treatment of payments by affili ates, excess expense plan accounting, reporting by multiple-class funds, and certain financial statement disclosures. While some of the Guide’s requirements will not be effective until the SEC amends its disclosure and reporting requirements, other requirements are effective presently.
 
The revised Guide will require the Funds to amortize premium and accrete discount on all fixed-income securities and classify gains and losses realized on paydowns on mortgage-backed securities, which are presently included in realized gain/loss, as interest income. Adopting these accounting principles will not impact the total net assets of the Funds, but will change the classification of certain amounts between interest income and realized and unrealized gain/loss in the Statements of Operations and affect the presentation of the Funds’ Financial Highlights. The Funds have not at this time quantified the impact, if any, resulting from the adoption of these accounting changes on the financial statements.
 
76

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540390 3/2001