-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SG659CeUBq2D6ulwvm4js7I9383P1gNseo+bcfU+s7U/++B/w1qsLT4ErZynyimN oQx2e3q1bkFLc78rsVgkKA== 0000950168-97-003160.txt : 19971106 0000950168-97-003160.hdr.sgml : 19971106 ACCESSION NUMBER: 0000950168-97-003160 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970831 FILED AS OF DATE: 19971105 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: EVERGREEN TAX FREE TRUST /MA CENTRAL INDEX KEY: 0000784975 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04507 FILM NUMBER: 97708167 BUSINESS ADDRESS: STREET 1: 200 BERKLEY STREET STREET 2: 2500 WESTCHESTER AVE CITY: BOSTON STATE: MA ZIP: 02116 BUSINESS PHONE: 6172103200 MAIL ADDRESS: STREET 1: 2500 WESTCHESTER AVE CITY: PURCHASE STATE: NY ZIP: 10577 FORMER COMPANY: FORMER CONFORMED NAME: FFB FUNDS TRUST DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FFB MONEY TRUST DATE OF NAME CHANGE: 19870701 FORMER COMPANY: FORMER CONFORMED NAME: BLB TAX FREE TRUST DATE OF NAME CHANGE: 19860324 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EVERGREEN INVESTMENT TRUST CENTRAL INDEX KEY: 0000757440 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 046599663 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04154 FILM NUMBER: 97708168 BUSINESS ADDRESS: STREET 1: 2500 WESTCHESTER AVE CITY: PURCHASE STATE: NY ZIP: 10577 BUSINESS PHONE: 9146412305 MAIL ADDRESS: STREET 1: 2500 WESTCHESTER AVE CITY: PURCHASE STATE: NY ZIP: 10577 FORMER COMPANY: FORMER CONFORMED NAME: FIRST UNION FUNDS/ DATE OF NAME CHANGE: 19940628 FORMER COMPANY: FORMER CONFORMED NAME: FIRST UNION HIGH GRADE TAX FREE PORT DATE OF NAME CHANGE: 19940519 FORMER COMPANY: FORMER CONFORMED NAME: FIRST UNION FUNDS DATE OF NAME CHANGE: 19921230 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EVERGREEN MUNICIPAL TRUST CENTRAL INDEX KEY: 0000836375 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: NY FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05579 FILM NUMBER: 97708169 BUSINESS ADDRESS: STREET 1: 200 BERKELEY ST CITY: BOSTON STATE: MA ZIP: 02116-5034 BUSINESS PHONE: 6172103533 MAIL ADDRESS: STREET 1: 2500 WESTCHESTER AVENUE CITY: PURCHASE STATE: NY ZIP: 10577 N-30D 1 EVERGREEN MONEY MARKET FUNDS N-30D Evergreen Money Market Funds (Photo of mountains, stream, and trees) 1997 Annual Report (Evergreen Tree Symbol Goes Here) Evergreen Funds (sm) Since 1932 EVERGREEN (Evergreen Graphic Goes Here) TABLE OF CONTENTS Letter to Shareholders............................... 1 FUND AT A GLANCE Evergreen Money Market Fund........................ 2 Evergreen Pennsylvania Tax-Free Money Market Fund............................................ 3 Evergreen Tax Exempt Money Market Fund............................................ 4 Evergreen Treasury Money Market Fund............... 5 FINANCIAL HIGHLIGHTS Evergreen Money Market Fund........................ 6 Evergreen Pennsylvania Tax-Free Money Market Fund............................................ 9 Evergreen Tax Exempt Money Market Fund............................................ 10 Evergreen Treasury Money Market Fund............... 11 SCHEDULES OF INVESTMENTS Evergreen Money Market Fund........................ 12 Evergreen Pennsylvania Tax-Free Money Market Fund............................................ 17 Evergreen Tax Exempt Money Market Fund............................................ 20 Evergreen Treasury Money Market Fund............... 29 Statements of Assets and Liabilities................. 31 Statements of Operations............................. 32 Statements of Changes in Net Assets.................. 33 Combined Notes to Financial Statements............... 35 Report of Independent Accountants-- Price Waterhouse LLP............................... 41 Independent Auditors' Report-- KPMG Peat Marwick LLP.............................. 42 Federal Income Tax Status of Distributions........... 43
ABOUT EVERGREEN KEYSTONE Since 1971, the Evergreen Funds have been providing investors with a proven, value-driven approach to equity investment management. For over 60 years of changing economic conditions, Keystone has taken pride in helping investors meet their financial goals through a broad range of financial products and services. Combined, Evergreen Keystone offers over 70 funds designed to meet a broad range of objectives, including fixed-income, balanced, growth and income, and aggressive growth. Assets under management total more than $30 billion. EVERGREEN LETTER TO SHAREHOLDERS (Evergreen Graphic October 1997 Goes Here) (Photo of William M Ennis Goes Here) WILLIAM M. ENNIS Dear Shareholders: Money market funds did their job during the past year. During a period when both the stock and bond markets delivered generous returns, although with some short-term instability, money market funds provided investors with an opportunity to receive competitive current income, to maintain liquidity, and to have a safe harbor from the fluctuations of riskier parts of the capital markets. During the year, the U.S. economy continued its extraordinary performance. Unemployment neared 24-year lows, the Gross Domestic Product grew strongly, and consumer confidence soared. Through it all, inflation remained benign, despite the exceptional growth and low unemployment. This near-perfect environment was interrupted briefly in March when Federal Reserve Board Chairman Alan Greenspan, in an appearance before Congress, suggested that it was necessary that the Federal Reserve Board raise short-term rates to curb potential inflation. On March 25, the board did just that, raising the Fed Funds rate by one-quarter of one-percent. Subsequently, the economy continued its healthy, non-inflationary pace of growth, and the board did not change rates again for the remainder of your fund's fiscal year, which ended on August 31, 1997. In the bond market, after the rates jumped up in March, they started a gradual decline during the following two months. As measured by the three-month Treasury Bill, interest rates bottomed out at 4.84% on June 2, then climbed steadily before closing at 5.22% on the final business day of August. Throughout this period, your Evergreen money market funds retained their $1.00 net asset values, while income tended to move with changes in market rates. These funds proved to be an excellent place for assets of those investors who wanted a relatively safe place for their money, either because they wanted liquidity or because they were concerned about volatility in the markets. I am delighted to inform you that Evergreen Keystone has successfully integrated all service functions of Evergreen and Keystone Funds. This means that you now have full exchange privileges among all Evergreen and Keystone America funds. In addition, you will be receiving the top-flight service that earned Evergreen Keystone the 1996 Dalbar Quality Tested Service Seal, the highest award for mutual fund service presented by Dalbar, an independent mutual fund survey and rating firm. In the following pages, we provide specific information about each Evergreen money market fund. We present this information in a new format that makes information easily accessible. We are very interested in hearing your thoughts on this new format, and we welcome your suggestions. Sincerely, /s/ Bill Ennis WILLIAM M. ENNIS MANAGING DIRECTOR 1 EVERGREEN MONEY MARKET FUND (Evergreen Graphic Goes Here) FUND AT A GLANCE As of August 31, 1997 [CAPTION]
PERFORMANCE AVERAGE ANNUALIZED TOTAL RETURNS YIELDS & DISTRIBUTIONS -------------------------- ----------------------- SHARE INCEPTION 3 5 SINCE 7-DAY YIELD 30-DAY YIELD 12-MONTH CLASS DATE 1 YEAR 1 YEAR1 YEARS YEARS INCEPTION (ANNUALIZED) (ANNUALIZED) DISTRIBUTION A 1/4/95 4.95% -- -- -- 5.10% 4.91% 4.90% $0.05 B 1/26/95 4.22% -0.78% -- -- 4.36%1 4.20% 4.20% $0.04 C 8/1/97 -- -- -- -- -- 4.20% 4.20% $0.0042 K 8/1/97 -- -- -- -- -- 4.90% -- $0.0042 Y 11/2/87 5.27% -- 5.34% 4.54% 5.91% 5.20% 5.20% $0.05
1 THE PERFORMANCE SHOWN REFLECTS THE APPLICABLE CDSC (CONTINGENT DEFERRED SALES CHARGE). 2 THE 12-MONTH DISTRIBUTION IS CUMULATIVE SINCE INCEPTION FOR CLASS C AND CLASS K SHARES. PORTFOLIO CHARACTERISTICS TOTAL NET ASSETS (ALL CLASSES): $3,465,323,866 AVERAGE MATURITY: 80 days OBJECTIVE: Stability of principal and competitive income STRATEGY: Invests in high quality money market instruments PORTFOLIO COMPOSITION (AS A PERCENTAGE OF PORTFOLIO ASSETS) (Pie chart appears here with the following plot points.) U.S. Gov't and other Agency 0.5% Bankers' Acceptance 3.7% Corp. Notes/Bonds 5.5% Certificates of Deposit 12.9% Commercial Paper 77.4% PORTFOLIO MANAGER Ethel B. Sutton joined Lieber & Co. in 1985 and has fifteen years experience managing portfolios of money market instruments. At Lieber & Co., she is Vice President- Investments of Evergreen Money Market Trust, which she has (Photo of managed since its inception in 1987. Prior to joining Lieber & Ethel B. Co., Mrs. Sutton was Money Market Manager from 1980-1985 for Sutton Avco Corporation's Paul Revere Life Insurance Company and its Appears U.S. and Canadian subsidiaries, as well as for the credit life Here) and casualty companies of Avco Financial Services. Mrs. Sutton is a graduate of Mount Holyoke College where she received a B.A. degree in English. ETHEL B. SUTTON AN INVESTMENT IN THE FUND IS NEITHER INSURED OR GUARANTEED BY THE U.S. GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A STABLE NAV OF $1.00 PER SHARE. YIELDS WILL FLUCTUATE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 2 EVERGREEN PENNSYLVANIA TAX-FREE MONEY MARKET FUND (Evergreen Graphic Goes Here) FUND AT A GLANCE As of August 31, 1997 [CAPTION]
PERFORMANCE AVERAGE ANNUALIZED TOTAL RETURNS YIELDS & DISTRIBUTIONS ------------------------------ --------------------------- SHARE INCEPTION 3 5 SINCE 7-DAY YIELD 30-DAY YIELD 12-MONTH CLASS DATE 1 YEAR YEARS YEARS INCEPTION (ANNUALIZED) (ANNUALIZED) DISTRIBUTION A 8/22/95 3.05% -- -- 3.10% 2.89% 2.87% $0.03 Y 8/15/91 3.15% 3.31% 2.87% 2.98% 2.99% 2.97% $0.03
PORTFOLIO CHARACTERISTICS TOTAL NET ASSETS (ALL CLASSES): $67,704,382 AVERAGE MATURITY: 40 days OBJECTIVE: Stability of principal and tax-free income STRATEGY: Invests in short-term tax-free securities issued in Pennsylvania
PORTFOLIO COMPOSITION (AS A PERCENTAGE OF PORTFOLIO ASSETS) (Pie chart appears here with the following plot points.) General Market Notes 4.5% Put or Option Tender Bonds 8.0% Cash Equivalents 8.5% Revenue & General Obligation Bonds 22.5% Variable Rate Notes 56.5% PORTFOLIO MANAGER Diane Beaver joined First Union in 1992. Ms. Beaver has over 14 years of investment experience. She currently manages the Pennsylvania Tax-Free Money Market Fund, co-manages the Evergreen Institutional Tax-Free Money Market Fund, and is responsible for purchasing municipal bonds for individual trust accounts. Ms. Beaver is an active participant in the Carolina Women in Investments organization. She graduated from Lenoir Ryhne College in 1973 with a B.A. in History and Sociology. (Photo of Diane Beaver Goes Here) DIANE BEAVER AN INVESTMENT IN THE FUND IS NEITHER INSURED OR GUARANTEED BY THE U.S. GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A STABLE NAV OF $1.00 PER SHARE. YIELDS WILL FLUCTUATE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 3 EVERGREEN TAX EXEMPT MONEY MARKET FUND (Evergreen Graphic Goes Here) FUND AT A GLANCE As of August 31, 1997 [CAPTION]
PERFORMANCE AVERAGE ANNUALIZED TOTAL RETURNS YIELDS & DISTRIBUTIONS ---------------------------- ----------------------------- SHARE INCEPTION 3 5 SINCE 7-DAY YIELD 30-DAY YIELD 12-MONTH CLASS DATE 1 YEAR YEARS YEARS INCEPTION (ANNUALIZED) (ANNUALIZED) DISTRIBUTION A 1/5/95 3.13% -- -- 3.24% 2.89% 2.93% $0.03 Y 11/2/88 3.44% 3.52% 3.13% 4.13% 3.19% 3.23% $0.03
PORTFOLIO CHARACTERISTICS TOTAL NET ASSETS (ALL CLASSES): $1,044,426,214 AVERAGE MATURITY: 36 days OBJECTIVE: Stability of principal and tax-free income STRATEGY: Invests in short-term municipal securities PORTFOLIO COMPOSITION (AS A PERCENTAGE OF PORTFOLIO ASSETS) (Pie chart appears here with the following plot points.) Anticipation Notes 4.2% Commercial Paper and Bonds 7.0% Put Bonds 15.5% Variable Rate Demand Notes 73.3% PORTFOLIO MANAGER Steven C. Shachat joined Lieber & Co. in 1988 and has been managing short-term tax-exempt investments. He is Portfolio Manager of Evergreen Tax-Exempt Money Market Fund and Evergreen Short-Intermediate Municipal Fund. Prior to joining Lieber & Co., Mr. Shachat was employed by Mitchell Hutchings Asset Management Inc., a subsidiary of Paine Webber Inc., as a Portfolio Manager of the Paine Webber Resource Management Account Tax-Free Fund. His previous experience was with Donald Sheldon & Co., a firm specializing in tax-exempt securities. Mr. Shachat earned a B.S. degree from Boston University. (Photo of Steven C. Shachat Goes Here) STEVEN C. SHACHAT AN INVESTMENT IN THE FUND IS NEITHER INSURED OR GUARANTEED BY THE U.S. GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A STABLE NAV OF $1.00 PER SHARE. YIELDS WILL FLUCTUATE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 4 EVERGREEN TREASURY MONEY MARKET FUND (Evergreen Graphic Goes Here) FUND AT A GLANCE As of August 31, 1997 [CAPTION]
PERFORMANCE AVERAGE ANNUALIZED TOTAL RETURNS YIELDS & DISTRIBUTIONS -------------------------------- ------------------------------- SHARE INCEPTION 3 5 SINCE 7-DAY YIELD 30-DAY YIELD 12-MONTH CLASS DATE 1 YEAR YEARS YEARS INCEPTION (ANNUALIZED) (ANNUALIZED) DISTRIBUTION A 3/6/91 4.82% 4.98% 4.17% 4.27% 4.87% 4.89% $0.05 Y 3/6/91 5.14% 5.30% 4.48% 4.57% 5.18% 5.18% $0.05
PORTFOLIO CHARACTERISTICS TOTAL NET ASSETS (ALL CLASSES): $3,031,680,413 AVERAGE MATURITY: 51 days OBJECTIVE: Stability of principal and current income STRATEGY: Invests in short-term U.S. Treasuries and repurchase agreements
PORTFOLIO COMPOSITION (AS A PERCENTAGE OF PORTFOLIO ASSETS) (Pie chart appears here with the following plot points.) Mutual Fund Shares 1.4% U.S. Treasury Notes 27.6% Repurchase Agreements 71% PORTFOLIO MANAGER Kellie Allen has over 11 years of investment experience. She is Vice President and Fixed Income Portfolio Manager. She manages three money market and short-term funds as well as several separately managed accounts and has responsibility for a total of $2.4 billion in assets. Ms. Allen started at First Union as an equity trader in 1986. Prior to joining First Union, she worked as an equity trader for First Tennessee Bank in Memphis, TN. (Photo of Kellie Allen Goes Here) KELLIE ALLEN AN INVESTMENT IN THE FUND IS NEITHER INSURED OR GUARANTEED BY THE U.S. GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO MAINTAIN A STABLE NAV OF $1.00 PER SHARE. YIELDS WILL FLUCTUATE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. 5 EVERGREEN MONEY MARKET FUND (Evergreen Graphic Goes Here) FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
JANUARY 4, 1995 YEAR ENDED (COMMENCEMENT OF AUGUST 31, CLASS OPERATIONS) TO 1997 1996 AUGUST 31, 1995 CLASS A SHARES NET ASSET VALUE BEGINNING OF YEAR................................................. $ 1.00 $ 1.00 $ 1.00 Net investment income............................................................. 0.05 0.05 0.03 Less distributions to shareholders from net investment income..................... (0.05) (0.05) (0.03) NET ASSET VALUE END OF YEAR....................................................... $ 1.00 $ 1.00 $ 1.00 Total return...................................................................... 4.95% 5.05% 3.53% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses.................................................................. 0.79% 0.75% 0.81%(a) Total expenses excluding indirectly paid expenses............................... 0.79% -- -- Total expenses excluding waivers and/or reimbursements.......................... 0.88% 0.89% 1.02%(a) Net investment income........................................................... 4.87% 4.86% 5.26%(a) NET ASSETS END OF YEAR (MILLIONS)................................................. $2,803 $1,755 $ 685
(a) Annualized.
JANUARY 26, 1995 YEAR ENDED (COMMENCEMENT OF AUGUST 31, CLASS OPERATIONS) TO 1997 1996 AUGUST 31, 1995 CLASS B SHARES NET ASSET VALUE BEGINNING OF YEAR.................................................. $ 1.00 $ 1.00 $ 1.00 Net investment income.............................................................. 0.04 0.04 0.03 Less distributions to shareholders from net investment income...................... (0.04) (0.04) (0.03) NET ASSET VALUE END OF YEAR........................................................ $ 1.00 $ 1.00 $ 1.00 Total return (a)................................................................... 4.22% 4.31% 2.78% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses................................................................... 1.49% 1.45% 1.51%(b) Total expenses excluding indirectly paid expenses................................ 1.49% -- -- Total expenses excluding waivers and/or reimbursements........................... 1.55% 1.59% 2.39%(b) Net investment income............................................................ 4.16% 4.18% 4.54%(b) NET ASSETS END OF YEAR (MILLIONS).................................................. $ 23 $ 10 $ 8
(a) Excluding applicable sales charges. (b) Annualized. SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 6 EVERGREEN MONEY MARKET FUND (Evergreen Graphic Goes Here) FINANCIAL HIGHLIGHTS (CONTINUED) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
AUGUST 1, 1997 (COMMENCEMENT OF CLASS OPERATIONS) TO AUGUST 31, 1997 CLASS C SHARES NET ASSET VALUE BEGINNING OF PERIOD...................................................................... $ 1.00 Net investment income.................................................................................... 0.00(c) Less distributions to shareholders from net investment income............................................ (0.00)(c) NET ASSET VALUE END OF PERIOD............................................................................ $ 1.00 Total return (a)......................................................................................... 0.37% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses......................................................................................... 1.67%(b) Total expenses excluding indirectly paid expenses...................................................... 1.66%(b) Total expenses excluding waivers and/or reimbursements................................................. 1.69%(b) Net investment income.................................................................................. 4.42%(b) NET ASSETS END OF PERIOD (MILLIONS)...................................................................... $ 5
(a) Excluding applicable sales charges. (b) Annualized. (c) Represents an amount less than $0.01 per share.
AUGUST 1, 1997 (COMMENCEMENT OF CLASS OPERATIONS) TO AUGUST 31, 1997 CLASS K SHARES NET ASSET VALUE BEGINNING OF PERIOD...................................................................... $ 1.00 Net investment income.................................................................................... 0.00(c) Less distributions to shareholders from net investment income............................................ (0.00)(c) NET ASSET VALUE END OF PERIOD............................................................................ $ 1.00 Total return (a)......................................................................................... 0.38% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses......................................................................................... 0.88%(b) Total expenses excluding indirectly paid expenses...................................................... 0.87%(b) Total expenses excluding waivers and/or reimbursements................................................. 0.91%(b) Net investment income.................................................................................. 4.90%(b) NET ASSETS END OF PERIOD (THOUSANDS)..................................................................... $ 105
(a) Excluding applicable sales charges. (b) Annualized. (c) Represents an amount less than $0.01 per share. SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 7 EVERGREEN MONEY MARKET FUND (Evergreen Graphic Goes Here) FINANCIAL HIGHLIGHTS (CONTINUED) (FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
YEAR ENDED AUGUST 31, 1997 1996 1995 CLASS Y SHARES NET ASSET VALUE BEGINNING OF YEAR.............................................. $ 1.00 $ 1.00 $ 1.00 ======= ======= ======= Net investment income.......................................................... 0.05 0.05 0.05 Less distributions to shareholders from net investment income.................. (0.05) (0.05) (0.05) ------- ------- ------- NET ASSET VALUE END OF YEAR.................................................... $ 1.00 $ 1.00 $ 1.00 ======= ======= ======= Total return................................................................... 5.27% 5.36% 5.38% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses............................................................... 0.48% 0.45% 0.53% Total expenses excluding indirectly paid expenses............................ 0.48% -- -- Total expenses excluding waivers and/or reimbursements....................... 0.54% 0.59% 0.73% Net investment income........................................................ 5.13% 5.16% 5.26% NET ASSETS END OF YEAR (MILLIONS).............................................. $ 635 $ 671 $ 283 TEN MONTHS AUGUST 31, 1994(B) CLASS Y SHARES NET ASSET VALUE BEGINNING OF YEAR.............................................. $ 1.00 ====== Net investment income.......................................................... 0.03 Less distributions to shareholders from net investment income.................. (0.03) ------ NET ASSET VALUE END OF YEAR.................................................... $ 1.00 ====== Total return................................................................... 2.92% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses............................................................... 0.32%(a) Total expenses excluding indirectly paid expenses............................ -- Total expenses excluding waivers and/or reimbursements....................... 0.71%(a) Net investment income........................................................ 3.46%(a) NET ASSETS END OF YEAR (MILLIONS).............................................. $ 273
YEAR ENDED OCTOBER 31, ----------------------- 1993 1992 1991 1990 1989 CLASS Y SHARES (continued) NET ASSET VALUE BEGINNING OF YEAR........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ======= ======= ======= Net investment income....................................... 0.03 0.04 0.07 0.08 0.09 Less distributions to shareholders from net investment income.................................................... (0.03) (0.04) (0.07) (0.08) (0.09) ------- -------- -------- -------- -------- NET ASSET VALUE END OF YEAR................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======== ======== ======== Total return................................................ 3.23% 4.23% 6.73% 8.40% 9.39% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses............................................ 0.39% 0.36% 0.30% 0.35% 0.38% Total expenses excluding indirectly paid expenses......... -- -- -- -- -- Total expenses excluding waivers and/or reimbursements.... 0.71% 0.72% 0.70% 0.69% 0.75% Net investment income..................................... 3.19% 4.18% 6.53% 8.08% 9.42% NET ASSETS END OF YEAR (MILLIONS)........................... $ 299 $ 358 $ 438 $ 458 $ 408 NOVEMBER 2, 1987 (COMMENCEMENT OF CLASS OPERATIONS) TO OCTOBER 31, 1988 CLASS Y SHARES (continued) NET ASSET VALUE BEGINNING OF YEAR........................... $ 1.00 ======= Net investment income....................................... 0.07 Less distributions to shareholders from net investment income.................................................... (0.07) ------- NET ASSET VALUE END OF YEAR................................. $ 1.00 ======= Total return................................................ 7.37% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses............................................ 0.43%(a) Total expenses excluding indirectly paid expenses......... -- Total expenses excluding waivers and/or reimbursements.... 0.93%(a) Net investment income..................................... 7.26%(a) NET ASSETS END OF YEAR (MILLIONS)........................... $ 161
(a) Annualized. (b) The Fund changed its fiscal year end from October 31 to August 31. SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 8 EVERGREEN PENNSYLVANIA TAX-FREE MONEY MARKET FUND (Evergreen Graphic Goes Here) FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
AUGUST 22, 1995 SIX MONTHS (COMMENCEMENT OF YEAR ENDED ENDED CLASS OPERATIONS) TO AUGUST 31, 1997 AUGUST 31, 1996 (B) FEBRUARY 29, 1996 CLASS A SHARES NET ASSET VALUE BEGINNING OF YEAR................................. $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= Net investment income............................................. 0.03 0.01 0.02 Less distributions to shareholders from net investment income..... (0.03) (0.01) (0.02) ------- -------- ------- NET ASSET VALUE END OF YEAR....................................... $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= Total return...................................................... 3.05% 1.49% 1.72% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses.................................................. 0.60% 0.55%(a) 0.47%(a) Total expenses excluding indirectly paid expenses............... 0.60% -- -- Total expenses excluding waivers and/or reimbursements.......... 0.89% 0.96%(a) 1.08%(a) Net investment income............................................. 3.01% 2.97%(a) 3.14%(a) NET ASSETS END OF YEAR (MILLIONS)................................. $ 36 $ 22 $ 4
(a) Annualized. (b) The Fund changed its fiscal year end from February 28 to August 31.
SIX MONTHS YEAR ENDED YEAR ENDED ENDED FEBRUARY 29, YEAR ENDED FEBRUARY 28, AUGUST 31, 1997 AUGUST 31, 1996 (B) 1996 1995 1994 1993 CLASS Y SHARES NET ASSET VALUE BEGINNING OF YEAR................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= ======= ======= ======= Net investment income.... 0.03 0.01 0.03 0.03 0.02 0.03 Less distributions to shareholders from net investment income...... (0.03) (0.01) (0.03) (0.03) (0.02) (0.03) -------- ------- ------- -------- ------- ------- NET ASSET VALUE END OF YEAR............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========= ======== ======= ======== ======= ======== Total return............. 3.15% 1.51% 3.55% 2.81% 2.10% 2.68% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses......... 0.50% 0.50%(a) 0.37% 0.33% 0.47% 0.35% Total expenses excluding indirectly paid expenses............. 0.50% -- -- -- -- -- Total expenses excluding waivers and/or reimbursements....... 0.60% 0.66%(a) 0.73% 1.05% 1.26% 1.07% Net investment income............... 3.10% 2.92%(a) 3.42% 3.09% 2.10% 2.62% NET ASSETS END OF YEAR (MILLIONS)............. $ 32 $ 48 $ 83 $ 44 $ 14 $ 16 AUGUST 15, 1991 (COMMENCEMENT OF CLASS OPERATIONS) TO FEBRUARY 29, 1992 CLASS Y SHARES NET ASSET VALUE BEGINNING OF YEAR................ $ 1.00 ======= Net investment income.... 0.02 Less distributions to shareholders from net investment income...... (0.02) -------- NET ASSET VALUE END OF YEAR............ $ 1.00 ======== Total return............. 2.20% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses......... 0.19%(a) Total expenses excluding indirectly paid expenses............. -- Total expenses excluding waivers and/or reimbursements....... 0.77%(a) Net investment income............... 3.90%(a) NET ASSETS END OF YEAR (MILLIONS)............. $ 21
(a) Annualized. (b) The Fund changed its fiscal year end from February 28 to August 31. SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 9 EVERGREEN TAX EXEMPT MONEY MARKET FUND (Evergreen Graphic Goes Here) FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
YEAR ENDED JANUARY 5, 1995 AUGUST 31, (COMMENCEMENT OF ----------------- CLASS OPERATIONS) TO 1997 1996 AUGUST 31, 1995 CLASS A SHARES NET ASSET VALUE BEGINNING OF YEAR................................................ $ 1.00 $ 1.00 $ 1.00 ======= ======= ======= Net investment income............................................................ 0.03 0.03 0.02 Less distributions to shareholders from net investment income.................... (0.03) (0.03) (0.02) -------- ------- ------- NET ASSET VALUE END OF YEAR...................................................... $ 1.00 $ 1.00 $ 1.00 ======== ======= ======= Total return..................................................................... 3.13% 3.22% 2.24% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses................................................................. 0.83% 0.79% 0.78%(a) Total expenses excluding indirectly paid expenses.............................. 0.83% -- -- Total expenses excluding waivers and/or reimbursements......................... 0.86% 0.90% 0.90%(a) Net investment income.......................................................... 3.09% 3.14% 3.28%(a) NET ASSETS END OF YEAR (MILLIONS)................................................ $ 667 $ 661 $ 555
(a) Annualized.
YEAR ENDED AUGUST 31, 1997 1996 1995 1994 1993 1992 1991 1990 CLASS Y SHARES NET ASSET VALUE BEGINNING OF YEAR.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income.............................. 0.03 0.03 0.04 0.02 0.03 0.04 0.05 0.06 Less distributions to shareholders from net investment income................................ (0.03) (0.03) (0.04) (0.02) (0.03) (0.04) (0.05) (0.06) NET ASSET VALUE END OF YEAR........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total return....................................... 3.44% 3.53% 3.59% 2.50% 2.61% 3.73% 5.46% 6.15% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses................................... 0.53% 0.49% 0.50% 0.34% 0.34% 0.32% 0.28% 0.31% Total expenses excluding indirectly paid expenses....................................... 0.53% -- -- -- -- -- -- -- Total expenses excluding waivers and/or reimbursements................................. 0.55% 0.60% 0.63% 0.64% 0.63% 0.63% 0.66% 0.71% Net investment income............................ 3.37% 3.44% 3.53% 2.47% 2.58% 3.72% 5.23% 5.94% NET ASSETS END OF YEAR (MILLIONS).................. $ 378 $ 617 $ 421 $ 402 $ 401 $ 417 $ 510 $ 311 NOVEMBER 2, 1988 (COMMENCEMENT OF CLASS OPERATIONS) TO AUGUST 31, 1989 CLASS Y SHARES NET ASSET VALUE BEGINNING OF YEAR.................. $ 1.00 Net investment income.............................. 0.05 Less distributions to shareholders from net investment income................................ (0.05) NET ASSET VALUE END OF YEAR........................ $ 1.00 Total return....................................... 5.51% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses................................... 0.24%(a) Total expenses excluding indirectly paid expenses....................................... -- Total expenses excluding waivers and/or reimbursements................................. 0.79%(a) Net investment income............................ 6.77%(a) NET ASSETS END OF YEAR (MILLIONS).................. $ 109
(a) Annualized. SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 10 EVERGREEN TREASURY MONEY MARKET FUND (Evergreen Graphic Goes Here) FINANCIAL HIGHLIGHTS (FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
EIGHT MONTHS YEAR ENDED ENDED YEAR ENDED AUGUST 31, AUGUST 31, DECEMBER 31, 1997 1996 1995 (B) 1994 1993 1992 CLASS A SHARES NET ASSET VALUE BEGINNING OF YEAR.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income................................ 0.05 0.05 0.03 0.04 0.03 0.03 Less distributions to shareholders from net investment income.................................. (0.05) (0.05) (0.03) (0.04) (0.03) (0.03) NET ASSET VALUE END OF YEAR.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total return......................................... 4.82% 4.98% 3.58% 3.75% 2.73% 3.36% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses..................................... 0.72% 0.69% 0.63%(a) 0.50% 0.48% 0.48% Total expenses excluding indirectly paid expenses......................................... 0.72% -- -- -- -- -- Total expenses excluding waivers and/or reimbursements................................... 0.72% 0.77% 0.79%(a) 0.78% 0.82% 0.82% Net investment income.............................. 4.73% 4.76% 5.30%(a) 3.91% 2.70% 3.22% NET ASSETS END OF YEAR (MILLIONS).................... $2,485 $2,608 $1,178 $ 755 $ 261 $ 209 MARCH 6, 1991 (COMMENCEMENT OF CLASS OPERATIONS) TO DECEMBER 31, 1991 CLASS A SHARES NET ASSET VALUE BEGINNING OF YEAR.................... $ 1.00 Net investment income................................ 0.04 Less distributions to shareholders from net investment income.................................. (0.04) NET ASSET VALUE END OF YEAR.......................... $ 1.00 Total return......................................... 4.46% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses..................................... 0.47%(a) Total expenses excluding indirectly paid expenses......................................... -- Total expenses excluding waivers and/or reimbursements................................... 1.08%(a) Net investment income.............................. 4.95%(a) NET ASSETS END OF YEAR (MILLIONS).................... $ 100
(a) Annualized. (b) The Fund changed its fiscal year end from December 31 to August 31.
EIGHT MONTHS YEAR ENDED ENDED YEAR ENDED AUGUST 31, AUGUST 31, DECEMBER 31, 1997 1996 1995 (B) 1994 1993 1992 CLASS Y SHARES NET ASSET VALUE BEGINNING OF YEAR.................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income................................ 0.05 0.05 0.04 0.04 0.03 0.04 Less distributions to shareholders from net investment income.................................. (0.05) (0.05) (0.04) (0.04) (0.03) (0.04) NET ASSET VALUE END OF YEAR.......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Total return......................................... 5.14% 5.29% 3.78% 4.06% 3.04% 3.67% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses..................................... 0.42% 0.39% 0.33%(a) 0.20% 0.18% 0.17% Total expenses excluding indirectly paid expenses......................................... 0.42% -- -- -- -- -- Total expenses excluding waivers and/or reimbursements................................... 0.43% 0.47% 0.49%(a) 0.48% 0.52% 0.52% Net investment income.............................. 5.02% 5.12% 5.60%(a) 3.78% 3.00% 3.61% NET ASSETS END OF YEAR (MILLIONS).................... $ 547 $ 760 $ 277 $ 163 $ 366 $ 286 MARCH 6, 1991 (COMMENCEMENT OF CLASS OPERATIONS) TO DECEMBER 31, 1991 CLASS Y SHARES NET ASSET VALUE BEGINNING OF YEAR.................... $ 1.00 Net investment income................................ 0.05 Less distributions to shareholders from net investment income.................................. (0.05) NET ASSET VALUE END OF YEAR.......................... $ 1.00 Total return......................................... 4.66% RATIOS/SUPPLEMENTAL DATA RATIOS TO AVERAGE NET ASSETS: Total expenses..................................... 0.20%(a) Total expenses excluding indirectly paid expenses......................................... -- Total expenses excluding waivers and/or reimbursements................................... 0.52%(a) Net investment income.............................. 5.53%(a) NET ASSETS END OF YEAR (MILLIONS).................... $ 265
(a) Annualized. (b) The Fund changed its fiscal year end from December 31 to August 31. SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 11 EVERGREEN MONEY MARKET FUND (Evergreen Graphic Goes Here) SCHEDULE OF INVESTMENTS August 31, 1997
PRINCIPAL AMOUNT VALUE BANKERS' ACCEPTANCES-- 0.1% (cost $3,995,621) $ 4,000,000 Bank Of Hawaii Nassau, 5.63%, 9/8/97................... $ 3,995,621 BANKERS' ACCEPTANCES-- YANKEE & EURO DOLLAR-- 3.6% 30,000,000 Bank Of Tokyo Mitsubishi Limited, 5.70%, 12/31/97................. 29,425,250 14,200,000 Dai-Ichi Kangyo Bank, 5.70%, 12/9/97.................. 13,977,415 Fuji Bank Limited New York: 10,000,000 5.62%, 2/2/98..................... 9,759,589 13,000,000 5.70%, 1/5/98..................... 12,740,650 10,000,000 5.77%, 1/5/98..................... 9,798,050 Fuji Bank Limited: 10,000,000 5.68%, 9/10/97.................... 9,985,800 16,000,000 5.74%, 10/6/97.................... 15,910,711 8,000,000 5.86%, 10/28/97................... 7,925,773 Sanwa Bank Limited: 5,700,000 5.63%, 12/2/97.................... 5,617,990 8,100,000 5.66%, 9/16/97.................... 8,080,897 TOTAL BANKERS' ACCEPTANCES-- YANKEE & EURO DOLLAR (COST $123,222,125)............. 123,222,125 CERTIFICATES OF DEPOSIT-- 12.9% 25,000,000 Bank Brussels Lambert America Inc., 5.85%, 1/9/98................... 25,000,000 5,000,000 Bank of New York, 5.93%, 9/3/97................... 4,999,970 50,000,000 Bank Of Nova Scotia, 5.81%, 8/5/98................... 49,986,704 25,000,000 Banque National De Paris, 5.86%, 1/23/98.................. 25,000,000 25,000,000 Bayerische Vereinsbank AG, 5.76%, 12/19/97................. 25,000,000 25,000,000 Bayerische Vereinsbank AG, New York, 6.15%, 5/11/98.................. 25,000,000 25,000,000 Canadian Imperial Bank of Commerce, 5.70%, 1/2/98................... 25,000,000 5,000,000 Commerzbank AG, New York Branch, 5.67%, 9/18/97.................. 4,999,704 Deutsche Bank AG: 5,000,000 5.91%, 3/17/98.................... 4,999,226 25,000,000 6.00%, 9/23/97.................... 25,000,000 25,000,000 National Bank of Canada, 5.50%, 11/14/97................. 25,000,000 PRINCIPAL AMOUNT VALUE CERTIFICATES OF DEPOSIT-- CONTINUED $50,000,000 National Bank Of Canada, New York, 6.00%, 6/26/98.................. $ 50,000,000 Rabobank Nederland N.V.: 5,000,000 5.78%, 12/8/97.................... 5,002,961 1,000,000 5.99%, 3/24/98.................... 998,835 Societe Generale: 25,000,000 5.70%, 12/16/97................... 25,000,000 25,000,000 5.70%, 1/2/98..................... 25,000,000 25,000,000 5.80%, 1/9/98..................... 25,000,000 25,000,000 Societe Generale (New York), 5.66%, 2/23/98.................. 25,000,000 50,000,000 Svenska Handlesbanken Inc., 5.96%, 8/13/98.................. 49,981,880 TOTAL CERTIFICATES OF DEPOSIT (COST $445,969,280)............. 445,969,280 COMMERCIAL PAPER-- 77.4% AUTOMOTIVE EQUIPMENT & MANUFACTURING-- 0.6% 22,500,000 BMW U.S. Capital Corp., 5.53%, 11/10/97................. 22,258,063 BANK HOLDING COMPANIES-- 16.4% 5,000,000 ABN Amro North America, 5.52%, 11/10/97................. 4,946,333 25,000,000 Bankers Trust Company, 6.145%, 5/28/98................. 24,998,242 Bankers Trust New York Corp.: 25,000,000 5.48%, 10/20/97................... 24,813,528 25,000,000 5.51%, 10/10/97................... 24,850,771 Chiao Tung Bank: 20,000,000 5.55%, 12/11/97................... 19,688,583 24,900,000 5.57%, 11/3/97.................... 24,657,287 25,000,000 5.70%, 12/11/97................... 24,600,209 50,000,000 5.75%, 10/9/97.................... 49,696,528 Export Import Bank Korea: 46,500,000 5.63%, 10/10/97................... 46,216,389 50,000,000 5.67%, 10/7/97.................... 49,716,500 Industrial Bank Korea: 10,000,000 5.70%, 9/15/97.................... 9,977,833 10,000,000 5.70%, 10/7/97.................... 9,943,000 15,000,000 5.72%, 9/26/97.................... 14,940,417 9,700,000 5.78%, 11/4/97.................... 9,600,327 25,000,000 5.85%, 9/26/97.................... 24,898,438 Korea Development Bank: 11,000,000 5.63%, 9/22/97.................... 10,963,874 40,000,000 5.65%, 9/3/97..................... 39,987,444 25,000,000 5.70%, 10/7/97.................... 24,857,500 20,000,000 5.75%, 10/23/97................... 19,833,889 Sumitomo Bank Capital Mkts., Inc.: 26,223,000 5.70%, 10/6/97.................... 26,077,681 33,000,000 5.73%, 9/18/97.................... 32,910,707
(CONTINUED) 12 EVERGREEN MONEY MARKET FUND (Evergreen Graphic Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997
PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-CONTINUED BANK HOLDING COMPANIES-- CONTINUED Unifunding, Inc.: $30,400,000 5.51%, 10/21/97.................. $ 30,167,355 20,000,000 5.53%, 11/12/97.................. 19,778,800 568,121,635 CHEMICALS-- 0.4% 15,000,000 Arco Chemical Company, 5.55%, 11/7/97................. 14,845,063 DIVERSIFIED COMPANIES-- 2.4% 50,000,000 Duke Capital Corp., 5.55%, 10/6/97................. 49,730,208 12,000,000 First Brands Commercial Inc. (a), 5.54%, 9/5/97.................. 11,992,613 23,150,000 Mitsui & Co. (USA), Inc., 5.55%, 10/14/97................ 22,996,535 84,719,356 ELECTRONICS-- 3.5% 10,000,000 Avnet, Inc., 5.53%, 9/29/97................. 9,956,989 Orix America, Inc., (LOC: Norinchukin Bank) (a): 26,000,000 5.60%, 11/5/97................... 25,737,111 44,675,000 5.62%, 11/6/97................... 44,214,699 6,500,000 5.63%, 11/3/97................... 6,435,959 9,300,000 5.70%, 9/15/97................... 9,279,385 Seiko Corp, (LOC: Sumitomo Bank): 10,000,000 5.66%, 9/16/97................... 9,976,417 15,000,000 5.68%, 10/6/97................... 14,917,166 120,517,726 ENERGY-- 2.1% CSW Credit Inc.: 15,100,000 5.50%, 9/11/97.................. 15,076,931 15,300,000 5.50%, 9/16/97................... 15,264,937 16,393,000 5.53%, 11/7/97................... 16,224,284 Oglethorpe Power Company: 11,799,000 5.55%, 9/18/97................... 11,768,077 13,000,000 5.56%, 9/11/97................... 12,979,922 71,314,151 FINANCE & INSURANCE-- 29.2% 5,000,000 American Express Credit Corp., 5.53%, 9/12/97................. 4,991,551 Aristar, Inc.: 30,000,000 5.59%, 10/17/97.................. 29,785,717 22,000,000 5.60%, 9/2/97.................... 21,996,578 16,000,000 5.60%, 9/5/97.................... 15,990,044 750,000 Associates Corp. North America, 6.63%, 11/15/97................ 751,930 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-- CONTINUED FINANCE & INSURANCE-- CONTINUED Astro Capital Corp., (LOC: Industrial Bank of Japan Ltd.): $30,000,000 5.61%, 12/30/97.................. $ 29,439,000 10,000,000 5.63%, 10/31/97.................. 9,906,167 Banner Receivables Corp., (LOC: Republic Bank) (a): 21,840,000 5.58%, 10/24/97................. 21,660,584 32,000,000 5.60%, 10/14/97.................. 31,785,956 22,000,000 Crown International Finance, (LOC: Credit Suisse) (a) 5.56%, 9/5/97.................. 21,986,409 10,000,000 Dynamic Funding Corp., (LOC: Sumitomo Bank) 5.70%, 9/29/97............... 9,955,667 Finova Capital Corp.: 25,000,000 5.54%, 10/31/97.................. 24,769,167 15,000,000 5.55%, 10/10/97.................. 14,909,812 10,000,000 5.55%, 10/17/97.................. 9,929,083 15,000,000 5.55%, 11/12/97.................. 14,833,500 27,015,000 5.56%, 9/15/97................... 26,956,588 2,000,000 Ford Motor Credit Company, 5.54%, 10/28/97................. 1,982,457 5,142,000 Fountain Square Commerce Funding, (LOC: Fifth Third Bank) (a) 5.55%, 9/9/97.................. 5,135,658 40,000,000 FP Funding Corp., (LOC: The Bank of Tokyo-Mitsubishi Ltd.) (a) 5.57%, 9/30/97................. 39,820,522 5,000,000 General Electric Capital Corp., 5.55%, 9/25/97................. 4,981,500 16,076,000 Gotham Funding Corp., (LOC: Republic Bank) 5.58%, 10/27/97................ 15,936,460 Green Tree Financial Corp.: 40,000,000 5.63%, 9/5/97.................... 39,974,978 25,000,000 5.70%, 10/14/97.................. 24,829,792 30,000,000 5.70%, 10/24/97.................. 29,748,250 20,000,000 5.70%, 10/27/97.................. 19,822,666 20,000,000 5.71%, 10/31/97.................. 19,809,667 10,000,000 5.72%, 10/20/97.................. 9,922,144 Jet Funding Corp., (LOC: Sanwa Bank): 15,000,000 5.63%, 9/30/97................... 14,931,971 40,300,000 5.70%, 9/30/97................... 40,114,956 15,000,000 5.72%, 9/30/97................... 14,930,883 10,000,000 KFW International Finance Inc., 5.49%, 10/20/97................ 9,925,275 (CONTINUED) 13 (Evergreen Graphic Goes Here) EVERGREEN MONEY MARKET FUND SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER--continued FINANCE & INSURANCE-- CONTINUED $25,000,000 Lehman Brothers Holdings, Inc., 5.82%, 11/26/97................ $24,652,417 24,000,000 Market Street Funding Corp., (LOC: Royal Bank of Canada) (a) 5.53%, 10/14/97................ 23,841,473 Merrill Lynch & Company Inc.: 50,000,000 5.52%, 9/29/97................... 49,785,333 5,000,000 5.63%, 10/15/97.................. 4,965,595 5,000,000 Motorola Inc., 5.46%, 9/9/97.................. 4,993,933 Old Line Funding Corp., (LOC: Dai-Ichi Kangyo Bank, Ltd.): 50,000,000 5.53%, 10/3/97................... 49,754,222 20,000,000 5.55%, 9/2/97 (a)................ 19,996,917 Progress Funding Corp., 30,000,000 5.64%, 10/22/97 (a).............. 29,760,300 (LOC: Sumitomo Bank): 20,000,000 5.63%, 9/12/97................... 19,965,594 6,500,000 5.65%, 9/26/97................... 6,474,497 22,750,000 Sanwa Business Credit Corp., (LOC: Fuji Bank Ltd.) 5.70%, 9/3/97.................. 22,742,796 5,000,000 Sara Lee Corp., 5.48%, 9/25/97................. 4,981,733 Sigma Finance Inc. (a): 50,000,000 5.53%, 9/22/97................... 49,838,708 12,450,000 5.55%, 9/29/97................... 12,396,258 Strait Capital Corp., (LOC: The Bank of Tokyo-Mitsubishi Ltd.): 9,924,000 5.62%, 10/15/97................. 9,855,833 17,083,000 5.62%, 12/1/97.................. 16,840,317 25,668,000 Strategic Asset Funding Corp., (LOC: Fuji Bank Ltd.) 5.80%, 9/30/97................. 25,548,074 Tri-Lateral Capital (USA), Inc., (LOC: Industrial Bank of Japan Ltd.): 34,270,000 5.65%, 10/6/97.................. 34,081,753 8,749,000 5.68%, 12/10/97................. 8,610,960 11,800,000 Wood Street Funding Corp., (LOC: Royal Bank of Canada) 5.54%, 11/13/97................ 11,667,440 1,012,269,085 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-- CONTINUED FOOD & BEVERAGE PRODUCTS-- 0.6% Cargill Financial Services Corp: $10,000,000 5.40%, 10/10/97.................. $ 9,941,500 12,000,000 5.60%, 12/5/97................... 11,822,667 21,764,167 HEALTHCARE PRODUCTS & SERVICES-- 0.2% 8,000,000 Holy Cross Health System Corp., 5.55%, 10/16/97................ 7,944,500 INSURANCE-- 3.4% Equitable of Iowa: 23,000,000 5.56%, 9/26/97................... 22,911,194 23,000,000 5.56%, 9/29/97................... 22,900,538 Safeco Credit Company Inc.: 13,000,000 5.58%, 11/13/97.................. 12,852,905 35,000,000 5.62%, 11/7/97................... 34,633,920 16,000,000 5.63%, 10/29/97.................. 15,854,871 8,000,000 5.63%, 10/31/97.................. 7,924,933 117,078,361 MACHINERY-- DIVERSIFIED-- 2.7% 27,500,000 American Honda Finance Corp., 5.56%, 10/21/97................ 27,287,639 General Motors Acceptance Corp.: 25,000,000 5.82%, 11/12/97.................. 24,709,000 25,000,000 5.84%, 10/14/97.................. 24,825,760 17,000,000 Mitsubishi Motors Credit of America, Inc., (LOC: Republic Bank) 5.68%, 9/15/97................. 16,962,449 93,784,848 OIL-- 1.6% 10,000,000 Fina Oil & Chemical Company, 5.52%, 10/27/97................ 9,914,133 45,625,000 Koch Industries, 5.51%, 10/2/97................. 45,408,522 55,322,655 PHARMACEUTICALS-- 1.0% AC Acquisition Holding Co.: 17,000,000 5.50%, 9/26/97 (a)............... 16,935,069 14,000,000 5.50%, 10/7/97................... 13,923,000 5,200,000 5.52%, 9/22/97 (a)............... 5,183,256 36,041,325 PUBLISHING, BROADCASTING & ENTERTAINMENT-- 4.3% Dun & Bradstreet Corp: 14,000,000 5.65%, 9/17/97................... 13,964,844 30,000,000 5.65%, 9/23/97................... 29,896,417 (CONTINUED) 14 EVERGREEN MONEY MARKET FUND (Evergreen Graphic Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-- CONTINUED PUBLISHING, BROADCASTING & ENTERTAINMENT-- CONTINUED $22,700,000 Knight Ridder Inc., 5.58%, 10/3/97.............. $ 22,587,408 Tribune Company (a): 5,900,000 5.55%, 9/24/97................ 5,879,080 44,100,000 5.60%, 9/24/97................ 43,942,220 32,000,000 5.63%, 12/19/97............... 31,454,515 147,724,484 REAL ESTATE-- 3.1% 11,588,000 Four Embarcadero, (LOC: Sanwa Bank) 5.62%, 11/13/97................ 11,455,942 MEC Finance USA, Inc. (a): 20,000,000 5.53%, 10/17/97.................. 19,858,678 11,000,000 5.68%, 9/18/97................... 10,970,495 Twin Towers, Inc. 32,443,000 5.52%, 11/21/97.................. 32,040,058 (LOC: NatWest Bank): 11,153,000 5.52%, 10/16/97.................. 11,076,045 17,325,000 5.54%, 9/24/97 (a)............... 17,263,679 6,000,000 5.55%, 10/21/97.................. 5,953,750 108,618,647 RETAIL-- 2.3% Avon Capital Corp. (a): 20,000,000 5.62%, 9/16/97................... 19,953,167 30,000,000 5.62%, 9/17/97................... 29,925,066 21,000,000 5.64%, 9/15/97................... 20,953,940 7,000,000 Sothebys Inc., 5.58%, 9/22/97................. 6,977,215 77,809,388 TELECOMMUNICATIONS-- 1.0% 8,000,000 Ameritech Corp., 5.58%, 10/6/97................. 7,956,600 25,000,000 GTE Corp., 5.54%, 9/26/97................. 24,903,819 32,860,419 TEXTILE & APPAREL-- 0.2% Calcot Ltd.: 3,000,000 5.58%, 9/11/97................. 2,995,350 2,000,000 5.58%, 9/12/97................. 1,996,590 3,000,000 5.60%, 9/12/97................. 2,994,867 7,986,807 TRANSPORTATION-- 0.1% 5,000,000 Harper Group, Inc. (The), 5.64%, 10/14/97................ 4,966,317 CONTAINERS & PACKAGES-- 0.5% B.I. Funding, Inc.: 6,200,000 5.52%, 10/8/97.................. 6,164,825 5,000,000 5.54%, 9/10/97.................. 4,993,075 6,200,000 5.55%, 10/16/97................. 6,156,988 17,314,888 PRINCIPAL AMOUNT VALUE COMMERCIAL PAPER-- CONTINUED LEASING-- 1.8% $13,000,000 JLUS Funding Corp., (LOC: Norinchukin Bank) 5.67%, 9/17/97................. $ 12,967,240 Shimizu International Finance, (LOC: Sanwa Bank): 19,000,000 5.62%, 11/13/97.................. 18,783,474 14,000,000 5.67%, 9/12/97................... 13,975,745 15,000,000 5.72%, 9/12/97................... 14,973,783 60,700,242 TOTAL COMMERCIAL PAPER (COST $2,683,962,127)..... 2,683,962,127 CORPORATE NOTES-- 5.5% 25,000,000 Abbey National Treasury Services PLC, Medium Term Note, 6.19%, 4/7/98.................. 24,990,444 BankBoston, Senior Medium Term Notes, 25,000,000 5.74%, 4/21/98................... 25,000,000 25,000,000 5.90%, 8/7/98.................... 25,000,000 50,000,000 6.05%, 7/17/98................... 50,000,000 5,000,000 Federal Home Loan Bank, 5.88%, 2/26/98................. 5,000,000 5,000,000 Federal National Mortgage Association, Notes 5.53%, 2/13/98................... 5,000,000 25,000,000 Morgan Guaranty Trust Company New York, 5.93%, 8/31/98................. 24,990,469 5,000,000 Northern Trust Company Bank, Medium Term Note, 5.96%, 6/17/98................. 5,001,062 25,000,000 Student Loan Corp., 5.76%, 1/14/98................. 25,000,000 TOTAL CORPORATE NOTES (COST $189,981,975)............ 189,981,975 U.S. GOVERNMENT-- DISCOUNT-- 0.3% 5,000,000 Federal Home Loan Mortgage Discount Notes, 5.55%, 9/2/97.................. 4,999,241 5,000,000 Federal National Mortgage Association, Discount Notes, 5.56%, 10/2/97................... 4,976,061 TOTAL U.S. GOVERNMENT-- DISCOUNT (COST $14,975,302)............. 9,975,302 TAXABLE MUNICIPALS-- 0.2% (COST $5,900,000) 5,900,000 Brittany Acres, 5,900,000 5.90%, VRDN.................... (CONTINUED) 15 EVERGREEN MONEY MARKET FUND (Evergreen Graphic Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997 PRINCIPAL SHARES VALUE MUTUAL FUND SHARES-- 0.0% (COST $1,432,838) 1,432,838 Federated Prime Value Obligation Fund................ $ 1,432,838 TOTAL INVESTMENTS-- (COST $3,464,439,268)... 100.0% 3,464,439,268 OTHER ASSETS AND LIABILITIES-- NET...... 0.0 884,598 NET ASSETS--.............. 100.0% $3,465,323,866
(a) Securities may be sold to "qualified institutional buyers" under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. SUMMARY OF ABBREVIATIONS: LOC Line of Credit VRDN Variable Rate Demand Notes Variable Rate Demand Notes are payable on demand on no more than seven calendar days notice given by the Fund to the issuer or other parties not affiliated with the issuer. Interest rates are determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. Interest rates presented for these securities are those in effect at August 31, 1997. SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 16 EVERGREEN PENNSYLVANIA TAX-FREE MONEY MARKET FUND (EVERGREEN GRAPHIC GOES HERE) SCHEDULE OF INVESTMENTS August 31, 1997
PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPAL SECURITIES-- 99.3% PENNSYLVANIA-- 98.0% $1,500,000 Allegheny Cnty. Higher Ed. Bldg. Auth. RB, Allegheny Cnty. Cmnty. College, Prerefunded @ 100, (Ins. by MBIA), 6.65%, 11/1/97................... $ 1,507,446 Allegheny Cnty. Hosp. Dev. Auth. RB: 1,000,000 Allegheny Gen. Hosp., Ser. 1995B, (LOC: Morgan Gty. Tr. Co. of NY), 3.25%, VRDN...................... 1,000,000 800,000 Allegheny Health Ed. & Resh. Corp., Ser. A-ACES, (LOC: PNC Bk., Pittsburgh), 3.40%, VRDN...................... 800,000 1,100,000 Allegheny Health Ed. & Resh. Corp., Ser. C-ACES, (LOC: PNC Bk., Pittsburgh), 3.40%, VRDN...................... 1,100,000 Allegheny Cnty. Hospital Development Revenue: 405,000 7.75%, 10/1/97..................... 414,394 1,000,000 Prerefunded @ 102, (COLL: US Govt. Sec.), 7.60%, 10/1/97................... 1,023,145 3,750,000 Allegheny Cnty. IDR, 3.70%, VRDN...................... 3,750,000 Beaver Cnty. IDA-PCR: 300,000 Duquesne Light Co., Beaver Vly., Ser. A, (LOC: Barclays Bk. PLC), 3.25%, VRDN...................... 300,000 2,000,000 The Toledo Edison Co. Mansfield, Ser. 1992E-TECP, (LOC: Toronto Dominion Bk.), 3.70%, 12/4/97................... 2,000,000 500,000 Berks Cnty. Municipal Auth. RB, Pooled Fin. Prog., Prerefunded @100, (COLL: US Govt. Sec.), 7.00%, 9/1/97.................... 500,000 1,000,000 Bucks Cnty. IDA, USX Corp. Project, ARB, (LOC: Wachovia Bk., NC), 3.75%, 1/15/98................... 1,000,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPAL SECURITIES-- CONTINUED PENNSYLVANIA-- CONTINUED $ 100,000 Bucks Cnty. IDA-RRB, SHV Real Estate, Inc., Ser. 1984, (LOC: ABN-Amro Bk.), 3.40%, VRDN...................... $ 100,000 1,000,000 Chester Cnty. Hlth. & Ed. Fac. Auth. RB, Barclays Friends, Ser. A, (LOC: Bk. of Ireland), 3.30%, VRDN...................... 1,000,000 435,000 Coudersport School Dist. GO Bds., (Ins. by FSA), 3.75%, 9/1/97.................... 435,000 Delaware Cnty. IDA Solid Waste RB, Scott Paper Co., 1984: 700,000 Ser. C, 3.25%, VRDN...................... 700,000 400,000 Ser. D, 3.25%, VRDN...................... 400,000 2,000,000 Delaware Vly., Registered Financing Bonds, (LOC: Credit Suisse), 3.25%, VRDN...................... 2,000,000 1,000,000 Delaware Vly. Regl. Fin. Auth. Local Govt. RB, Ser. 1985A, (LOC: Midland Bk. PLC), 3.25%, VRDN...................... 1,000,000 445,000 East Hempfield Township GO Bds., (Ins. by AMBAC), 4.25%, 11/1/97................... 445,357 Emmaus Gen. Auth. Local Govt. RB, Ser. 1989: 1,000,000 (LOC: Midland Bk. PLC) 3.35%, VRDN...................... 1,000,000 3,300,000 (GIC: Goldman Sachs) 3.35%, VRDN........................ 3,300,000 1,400,000 Bd. Pool Program, Subsrs. D-11, (LOC: Midland Bk. PLC), 3.40%, VRDN...................... 1,400,000 400,000 Bd. Pool Program, Subsrs. E-8, (LOC: Canadian Imperial Bk. of Commerce), 3.35%, VRDN...................... 400,000 425,000 Bd. Pool Program, Subsrs. E-9, (LOC: Midland Bk. PLC), 3.40%, VRDN...................... 425,000 1,400,000 Geisinger Auth. Hlth. Systems Revenue, (SPA: Morgan Gty. Tr. Co. of NY), 3.70%, VRDN...................... 1,400,000
(CONTINUED) 17 EVERGREEN PENNSYLVANIA TAX-FREE MONEY MARKET FUND (Evergreen Graphic Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997
PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPAL SECURITIES-- CONTINUED PENNSYLVANIA-- CONTINUED $1,600,000 Harrisburg Auth. Lease Revenue, Green County Prison Project, (COLL: US Govt. Sec), 5.90%, 6/1/98.................... $ 1,622,656 2,000,000 Indiana Cnty. Pennsylvania IDA, (LOC: UBS), 3.35%, VRDN...................... 2,000,000 500,000 Lancaster School Dist. GO Bds., (Ins. by FGIC), 4.00%, 2/15/98................... 500,324 200,000 Lehigh Cnty. IDA-PCRB, Ser. 1985A, (LOC: Rabobank Nederland), 3.40%, VRDN...................... 200,000 470,000 Lehigh Cnty. Water Auth. RB, Ser. 1984, (SPA: ABN-Amro Bk.), 3.25%, VRDN...................... 470,000 1,960,000 New Castle Area Hosp. Auth. RB, Jameson Mem. Hosp., (SPA: PNC Bk.), 3.40%, VRDN...................... 1,960,000 North Penn Water Auth. RB, (Ins. by FGIC) 500,000 6.75%, 11/1/97..................... 512,233 1,000,000 Prerefunded @ 102, 6.90%, 11/1/97................... 1,010,104 1,000,000 Northeastern Hosp. & Ed. Auth. Rev., Health Care Rev. Wyoming Vly., Ser. A, (SPA: Kredeitbank N.V.), 3.30%, VRDN...................... 1,000,000 400,000 Penns Manor Area School Dist., (Ins. by MBIA), 6.20%, 9/15/97................... 400,327 2,000,000 Pennsylvania HFA, 4.00%, VRDN*..................... 2,000,000 1,000,000 Pennsylvania Higher Ed. Fac. Auth. RB, Allegheny Delaware Vly., Ser. D, (LOC: PNC Bk., Pittsburgh), 3.30%, VRDN...................... 1,000,000 Pennsylvania Higher Ed. Facs. Auth. RB: 3,000,000 Allegheny College, (LOC: Mellon Bk. PLC), 3.30%, VRDN...................... 3,000,000 500,000 The Univ. of Pennsylvania Health Svs., Ser. 1994B-ACES, 3.20%, VRDN...................... 500,000 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPAL SECURITIES-- CONTINUED PENNSYLVANIA-- CONTINUED $2,000,000 Pennsylvania St. Higher Education Standard Loan, (LOC: SLMA), 3.55%, VRDN...................... $2,000,000 Pennsylvania St. Higher Educational Revenue: 3,000,000 4.50%, 11/15/97.................... 3,004,989 1,445,000 5.75%, 6/15/98..................... 1,466,857 2,000,000 Philadelphia Pennsylvania Airport Revenue, 3.55%, VRDN*..................... 2,000,000 2,170,000 Philadelphia Pennsylvania School District, (LIQ: Merrill Lynch), 3.35%, VRDN*..................... 2,170,000 2,000,000 Philadelphia TANS, Ser. A, 4.50%, 6/30/98................... 2,007,953 Pittsburgh: 1,500,000 Floating Rate Receipts, (LOC: Societe Generale), 3.45%, VRDN*..................... 1,500,000 500,000 GO Refunding Bds., Prerefunded @ 102, (Ins. by AMBAC), 6.80%, 9/1/97.................... 510,000 665,000 Pottstown Borough Sewer Auth. RB, 4.00%, 11/1/97................... 665,374 400,000 Sayre Health Care Facs. Auth. RB, VHA of Pennsylvania, Inc., Capital Asset Fin. Prog., Ser. A, (SPA: Mellon Bk. PLC), 3.30%, VRDN...................... 400,000 2,200,000 Schuylkill Cnty. IDA, Northeastern Power Co., (LOC: Credit Local de France), 3.75%, VRDN...................... 2,200,000 3,200,000 Schuylkill Cnty. IDA Res. Recovery RB, Gilberton Pwr., (LOC: Mellon Bk. PLC), 3.30%, VRDN...................... 3,200,000 500,000 State Public School Bldg. Auth. RB, (Ins. by AMBAC), 7.25%, 10/1/97................... 506,382 1,000,000 Temple University Of Commonwealth of Pennsylvania System, 4.75%, 5/18/98................... 1,005,799 160,000 Upper Merion Township GO Bds., 3.80%, 11/1/97................... 160,000 66,373,340 (CONTINUED) 18 EVERGREEN PENNSYLVANIA TAX-FREE MONEY MARKET FUND (Evergreen Graphic Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997 PRINCIPAL AMOUNT VALUE SHORT-TERM MUNICIPAL SECURITIES-- CONTINUED PUERTO RICO-- 1.3% $ 875,000 Puerto Rico Indl. Med. & Environmental Pollution Control Facs. Fin. Auth. RB, 4.00%, 12/1/97*.................. $ 875,000 TOTAL SHORT-TERM MUNICIPAL SECURITIES (COST $67,248,340)............... 67,248,340 SHARES VALUE MUTUAL FUND SHARES-- 0.2% (COST-- $140,000) 140,000 Federated Pennsylvania Municipal Cash Trust (Institutional Service Shares).......................... $ 140,000 TOTAL INVESTMENTS-- (COST $67,388,340)........ 99.5% 67,388,340 OTHER ASSETS AND LIABILITIES-- NET......... 0.5 316,042 NET ASSETS--................ 100.0% $67,704,382
SUMMARY OF ABBREVIATIONS: ACES Adjustable Convertible Extendable Securities AMBAC American Municipal Bond Assurance Corp. ARB Adjustable Rate Bonds COLL Collateral FGIC Financial Guaranty Insurance Co. FSA Financial Security Assurance Inc. GIC Guaranteed Investment Contract GO General Obligations HFA Housing Finance Authority IDA Industrial Development Authority IDR Industrial Development Revenue LIQ Liquidity Provider LOC Letter of Credit MBIA Municipal Bond Investors Assurance Corp. PCR Pollution Control Revenue PCRB Pollution Control Revenue Bond RB Revenue Bonds RRB Refunding Revenue Bonds SLMA Student Loan Marketing Association SPA Securities Purchase Agreement TANS Tax Anticipation Notes TECP Tax Exempt Commercial Paper VHA Veterans' Health Administration VRDN Variable Rate Demand Notes Adjustable Rate Bonds are putable back to the issuer or other parties not affiliated with the issuer at par on the interest reset dates. Interest rates are determined and set by the issuer quarterly, semi-annually or annually depending upon the terms of the security. Interest rates presented for these securities are those in effect at August 31, 1997. Variable Rate Demand Notes are payable on demand on no more than seven calendar days notice given by the Fund to the issuer or other parties not affiliated with the issuer. Interest rates are determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. Interest rates presented for these securities are those in effect at August 31, 1997. Certain obligations held in the portfolio have credit enhancements or liquidity features that may, under certain circumstances, provide for repayment of principal and interest on the obligation upon demand date, interest rate reset date or final maturity. These enhancements include: letters of credit; liquidity guarantees; standby bond purchase agreements; tender option purchase agreements; and third party insurance (i.e. AMBAC, FGIC and MBIA). Adjustable rate bonds and variable rate demand notes held in the portfolio may be considered derivative securities within the standards imposed by the Securities and Exchange Commission under Rule 2a-7 which were designed to minimize both credit and market risk. * Securities may be sold to "qualified institutional buyers" under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 19 EVERGREEN (Evergreen Graphic TAX EXEMPT MONEY MARKET FUND Goes Here) SCHEDULE OF INVESTMENTS August 31, 1997
PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- 99.6% ALABAMA-- 2.4% Alabama IDA-IDRB: $ 2,290,000 Air-Dro Cylinders, Inc., (LOC: Southtrust Bank of Alabama, N.A.), 3.75%, VRDN.................... $ 2,290,000 3,590,000 Automation Technologies Ind., Inc., (LOC: Columbus Bank & Trust Co.), 3.75%, VRDN.................... 3,590,000 Coml. Dev. Auth. of the City of Birmingham RB: 1,090,000 Avondale Comm. Park, Phase II, (LOC: Amsouth Bank, N.A.), 3.70%, VRDN.................... 1,090,000 645,000 Southside Business Ctr., (LOC: Amsouth Bank, N.A), 3.70%, VRDN.................... 645,000 2,955,000 IDB of Mobile County RB, Sherman Intl. Corp., Ser. 1994A, (LOC: Columbus Bank & Trust Co.), 3.75%, VRDN.................... 2,955,000 14,590,000 Mobile Alabama IDB-PCRB, International Paper Project, (Gtd. by International Paper), 4.00%, 10/15/97................ 14,590,000 25,160,000 ALASKA-- 2.0% 19,620,000 Alaska State Dept. Admin. COP, Ser. PT-94, (LIQ: Credit Suisse First Boston & Ins. by Capital Mkt. Assuran), 3.50%, VRDN.................... 19,620,000 785,000 Anchorage Alaska Hospital RB, 6.50%, 10/1/97................. 786,457 750,000 Kenai Peninsula Borough Alaska, GO, (Ins. by AMBAC), 8.20%, 1/1/98.................. 759,937 21,166,394 ARIZONA-- 0.7% 7,500,000 IDA of the City of Glendale RB, Thunderbird Gardens, (LOC: Sumitomo Bank, Ltd.), 3.70%, VRDN.................... 7,500,000 200,000 Maricopa County IDA, McLane Co., Inc., Ser. 1984, (LOC: Wachovia Bank of Georgia), 3.80%, VRDN.................... 200,000 7,700,000 PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED CALIFORNIA-- 8.3% $ 2,535,000 California Statewide Community Development MHRB, Argis Pleasant Hill Project, (LOC: Banque Paribas), 3.65%, VRDN.................... $ 2,535,000 4,250,000 City of Paramount MHRB, Century Place Apt., Ser. 1989A, (LOC: Heller Finl. Inc.), 3.99%, VRDN.................... 4,250,000 2,500,000 City of Simi Valley IDA-IDRB, Wambold Furniture, Ser. 1984, (LOC: Wells Fargo Bank, N.A.), 3.90%, VRDN.................... 2,500,000 1,900,000 Glenn County IDA-PCRB, Land O'Lakes, Inc., Ser. 1995, (LOC: Sanwa Bank, Ltd.), 3.75%, VRDN.................... 1,900,000 5,000,000 Los Angeles, California MHRB, Channel Gateway Apts., (LOC: Fuji Bank, Ltd.), 3.90%, VRDN.................... 5,000,000 1,100,000 Ontario California IDA, Erenberg Bros. Project, (LOC: Tokai Bank, Ltd.), 3.95%, VRDN.................... 1,100,000 12,200,000 Orange County California Apartment Development ARB, (Villas De La Paz), Issue O, (LOC: Tokai Bank, Ltd.), 4.35%, 8/15/98................. 12,200,000 5,000,000 Orange County California Apartment Development ARB, (Villas Aliento Project), Issue R, (LOC: Tokai Bank, Ltd.), 4.35%, 8/15/98................. 5,000,000 Pitney Bowes Corp. Leasetops Trs.: 23,670,645 Bart Telesystem Lease, (LOC: ABN-Amro Bank, N.V.), 3.65%, VRDN*................... 23,670,645 12,930,099 San Diego Regl. Comm. Sys. Lease, Ser. 1996A, (LOC: Landesbank Hessen & Ins. by Pitney Bowes), 3.65%, VRDN*................... 12,930,099 15,375,000 San Bernardino County COP Medical Center Financing Project, Ser. 1995, (LIQ: Merrill Lynch & Ins. by MBIA), 3.60%, VRDN.................... 15,375,000 86,460,744
(CONTINUED) 20 EVERGREEN TAX EXEMPT MONEY MARKET FUND (Evergreen Graphic Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997
PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED COLORADO-- 1.3% $ 2,500,000 Adams County IDRB, Yellow Freight Sys., Inc., Ser. 1983, (LOC: Union Bank of Switzerland), 3.70%, VRDN.................... $ 2,500,000 1,100,000 Arapahoe County MHRB, Stratford Sta., Ser. 1994, (LOC: Heller Finl., Inc.), 4.15%, VRDN.................... 1,100,000 4,760,000 Colorado HFA RB MERLOTS, Ser. C-ARB, (LIQ: Corestates Bank, N.A.), 4.15%, 11/1/97................. 4,760,000 3,000,000 Dove Valley Metropolitan District Arapahoe County GO, Ser. 1996C-ARB, (LOC: Dai-Ichi Kangyo Bank, Ltd.), 4.15%, 11/1/97................. 3,000,000 2,680,000 Parkview Met. District Arapahoe County GO, Ser. 1993, (LIQ: Colorado National Bank), 3.60%, VRDN.................... 2,680,000 14,040,000 DELAWARE-- 0.7% 3,000,000 Delaware EDA-IDRB, Arlon, Inc., Ser. 1989, (LOC: Bank of America, IL), 3.85%, VRDN.................... 3,000,000 1,640,000 Delaware Hsg. Auth. RB MERLOTS, Ser. G ARB, (LIQ: Corestates Bank, N.A. & Ins. by FGIC), 4.20%, 9/1/97.................. 1,640,000 2,480,000 New Castle County EDRB, Toys R Us, (LOC: Bankers Trust Co., NY), 3.60%, VRDN.................... 2,480,000 7,120,000 DISTRICT OF COLUMBIA-- 1.4% 500,000 District of Columbia, GO Series A, (Ins. by AMBAC), 7.25%, 6/1/98.................. 511,799 5,120,000 District of Columbia GO Ref., Puttable Floating Opt. Tax- Exempt Rcpt., Ser. PA-64, Ser. 1993C, (LIQ: Merrill Lynch & Ins. by FGIC), 3.60%, VRDN.................... 5,120,000 PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED DISTRICT OF COLUMBIA-- CONTINUED $ 4,500,000 District of Columbia Hsg. Fin. Agy. Single Family Mortgage RB, Series 1997C-ARB, (COLL: GNMA), 4.05%, 9/1/98.................. $ 4,500,000 5,000,000 District of Columbia Hsg. Fin. Agy., Single Family Mortgage RB, Ser. 1996 C-ARB, (Invest. Agreement: Trinity Funding Corp.), 3.90%, 12/1/97................. 5,000,000 15,131,799 FLORIDA-- 1.9% 2,800,000 Orange County HFA MHRB, Oakwood Project, Ser. E, (LOC: Fleet Bank, N.A.), 4.15%, 10/1/97................. 2,800,000 955,000 Palm Beach County Hsg. RB, Meridian Hsg., Ser. 1985, (LOC: Union Bank of California, N.A.), 4.33%, VRDN.................... 955,000 5,875,000 Palm Beach County School Board, MSTR Ser. 1996B, (LIQ: Norwest Bank, MN & Ins. by AMBAC), 3.55%, VRDN.................... 5,875,000 9,900,000 Tampa Florida Capital Improvement Program RB Puttable Floating Trust Rcpt. PT-96, (LOC: Rabobank Nederland N.V.; LIQ: Bayerische Hypotheken-und and Wechsel-Bank AG), 3.60%, 9/4/97.................. 9,900,000 19,530,000 GEORGIA-- 1.4% 1,000,000 Albany Dougherty County Hosp. RB, Ser. 1984A, (Gtd. by Merck & Co.), 3.85%, VRDN.................... 1,000,000 5,000,000 Albany Dougherty Payroll Series 1982A, (Gtd. by Merck & Co.), 3.60%, VRDN.................... 5,000,000 6,000,000 Polk County Dev. Auth. RB, Kimoto Tech. Inc., Ser. 1985, (LOC: Indl. Bank of Japan, Ltd.), 3.85%, VRDN.................... 6,000,000
(CONTINUED) 21 EVERGREEN (Evergreen Graphic TAX EXEMPT MONEY MARKET FUND Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997
PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED GEORGIA-- CONTINUED $ 2,200,000 Columbus Hsg. Auth. MHRB Ref., Quail Ridge Project, Ser. 1988, (LOC: Columbus Bank & Trust Co.), 3.75%, VRDN.................... $ 2,200,000 14,200,000 ILLINOIS-- 13.7% 2,820,000 Arlington Heights Illinois MHRB, (LOC: Heller Finl., Inc.), 3.90%, VRDN.................... 2,820,000 14,850,000 Chicago Illinois Board of Education Return Bonds, MERLOTS (LIQ: Corestates Bank, N.A. & Ins. by AMBAC), 3.61%, VRDN.................... 15,323,574 1,700,000 Chicago IDR, Federal Marine Terminal Project, (LOC: Canadian Imperial Bank of Commerce), 3.70%, VRDN.................... 1,700,000 9,670,000 City of Aurora MHRB, Fox Vly Vlg. Apts, Ser. 1993, (LOC: Sumitomo Bank, Ltd.), 3.65%, VRDN.................... 9,670,000 2,900,000 City of Chicago GO, MSTR SAK-13, Series 1995A-2, (LIQ: Credit Suisse First Boston & Ins. by AMBAC), 3.55%, VRDN.................... 2,900,000 29,000,000 City of Oakbrook Terrace MHRB, Renaissance, Ser. 1985A-ARB, (LOC: Bayerische Landesbank, Girozentrale), 4.90%, VRDN.................... 29,000,000 4,000,000 City of Peoria Solid Waste Disposal RB, PMP Fermentation Products, Inc., Ser. 1996, (LOC: Sanwa Bank, Ltd.), 3.80%, VRDN.................... 4,000,000 5,900,000 City of West Chicago IDRB, Acme Printing Inc., Ser. 1989, (LOC: Bank of Tokyo-Mitsubishi, Ltd.), 3.975%, VRDN................... 5,900,000 4,500,000 Crawford County Illinois Manufacturing Facilities RB, Fair-Rite Prdts. Corp., (LOC: Corestates Bank, N.A.), 3.65%, VRDN.................... 4,500,000 PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED ILLINOIS-- CONTINUED $ 3,500,000 Illinois Dev. Fin. Auth. EDRB, MTI Corp., (LOC: Indl. Bank of Japan, Ltd.), 4.10%, VRDN.................... $ 3,500,000 6,800,000 Illinois Dev. Fin. Auth. RB, Gen. Accident Ins. Co., Ser. 1985- ARB, (Gtd. by Gen. Accident Ins. Co. of Amer.), 3.70%, 9/1/97.................. 6,800,000 3,500,000 Illinois Dev. Fin. Auth. RB, Decatur Mental Health Ctr. (LOC: First of America, IL), 3.50%, VRDN.................... 3,500,000 3,500,000 Illinois Ed. Fac. Auth. RB, Cultural Pooled Financing Program, (LOC: First National Bank of Chicago, Inc.) 3.35%, VRDN.................... 3,500,000 6,566,021 Lasalle Natl. Bank Leasetops Trs., Ser. 1995A, (LIQ: LaSalle National Bank), 3.65%, VRDN*................... 6,566,021 16,640,000 Village of Hazel Crest Retirement Ctr. RB, Waterford Estates, Ser. 1992A, (LOC: Sumitomo Bank, Ltd.), 3.65%, VRDN.................... 16,640,000 10,000,000 Village of Schaumburg MHRB, Treehouse II Apt., Ser. 1989, (LOC: Sumitomo Bank, Ltd.), 3.65%, VRDN.................... 10,000,000 2,000,000 Village of Skokie EDRB, Skokie Fashion Square Assn., Ser. 1984, (LOC: LaSalle National Bank), 3.725%, VRDN................... 2,000,000 15,210,000 Village of Vernon Hills MHRB, Hawthorn Lakes, Ser. 1991, (LIQ: Fuji Bank, Ltd. & Ins. by FSA), 3.80%, VRDN.................... 15,210,000 143,529,595 INDIANA-- 1.6% 6,500,000 Avilla EDRB, Pent Assemblies Inc., Ser. 1996-ARB, (LOC: Fort Wayne National Bank), 4.35%, 2/1/98.................. 6,500,000 7,600,000 City of Fort Wayne PCRB, Gen. Mtrs. Corp., (Gtd. by Gen. Mtrs. Corp.), 3.55%, VRDN.................... 7,600,000
(CONTINUED) 22 EVERGREEN TAX EXEMPT MONEY MARKET FUND (Evergreen Graphic Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997
PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED INDIANA-- CONTINUED $ 2,000,000 City of South Bend MHRB, Maple Lane Assn., Ser. 1987, (LOC: FHLB of Indianapolis), 3.60%, VRDN.................... $ 2,000,000 925,000 Decatur Indl. EDA-RB, Silberline Mfg. Co. Inc., (LOC: Corestates Bank, N.A.), 4.30%, 12/1/97................. 925,000 17,025,000 IOWA-- 1.3% 3,800,000 Algona IDR, George A. Hormel & Co., (LOC: Sumitomo Bank Ltd.), 3.75%, VRDN.................... 3,800,000 City of Council Bluffs RB, Catholic Hlth. Corp.: 2,240,000 Mercy Hospital Project 4.00%, 10/1/97................. 2,240,000 7,025,000 Ser. 1985, Mercy Hospital Project (LOC: Fuji Bank, Ltd.), 4.00%, 10/1/97................. 7,025,000 13,065,000 KANSAS-- 0.4% 540,000 City of Manhattan Tax Increment RRB, Central Business Dist. Tax Increment Redev., Ser. 1996A, (Ins. by Asset Guaranty), 4.10%, 12/1/97................. 540,000 1,800,000 City of Prairie Village MHRB, J.C. Nichol's Co., Ser. 1985, (Gtd. by Principal Mutual Life Ins. Co.), 4.00%, VRDN.................... 1,800,000 City of Salina RB (Salina Central Mall L.P.), Ser. 1984, (LOC: National Bank of St. Louis): 1,200,000 Dillard's, 3.60%, VRDN.................... 1,200,000 1,105,000 Penny's, 3.60%, VRDN.................... 1,105,000 4,645,000 KENTUCKY-- 1.9% 20,300,000 County of Ohio PCRB, Big Rivers Elec. Corp., Ser. 1985, (LOC: Chemical Bank), 3.95%, VRDN.................... 20,300,000 LOUISIANA-- 0.6% 3,400,000 Bastrop IDB-PCRB, International Paper Project, ARB, (Gtd. by International Paper), 4.00%, 10/15/97................ 3,400,000 PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED LOUISIANA-- CONTINUED $ 3,050,000 IDB of the Parish of Bossier, Inc., H. J. Wilson Co., Inc., Ser. 1982-ARB, (LIQ: Canadian Imperial Bank of Commerce), 4.00%, 12/1/97................. $ 3,050,000 6,450,000 MAINE-- 0.4% 3,685,000 Jay Solid Waste Disposal RB, International Paper Project ARB, (Gtd. by International Paper), 4.20%, 6/1/98.................. 3,685,000 MASSACHUSETTS-- 0.2% 400,000 Massachusetts Indl. Finl. Agy., Copley Pharmacy, (LOC: First National Bank of Boston), 4.58%, VRDN.................... 400,000 600,000 Massachusetts Indl. Finl. Auth. IDRB, Leavy Realty & Jen-coat Metal, Ser. 1994, (LOC: First National Bank of Boston), 4.33%, VRDN.................... 600,000 700,000 Massachusetts Indl. Finl. Auth. IDRB, Portland Causeway Rlty., Ser. 1988, (LOC: Citibank, N.A.), 4.33%, VRDN.................... 700,000 1,700,000 MICHIGAN-- 0.4% 4,315,000.. Sault Ste. Marie Tribe Bldg. Auth. RB, Ser. 1996A ARB, (LOC: First of America Bank, N.A.), 4.42%, 12/1/97................. 4,315,000 MINNESOTA-- 8.0% 27,135,000 Capital Investors Tax Exempt Fund Ltd., Partnership, Ser. 1996-5, (LOC: Swiss Bank Corp.), 3.60%, VRDN.................... 27,135,000 14,905,000 City of Eden Prairie MHRB, Park at City West Apt., Ser. 1990, (LOC: Sumitomo Bank, Ltd.), 3.65%, VRDN.................... 14,905,000 2,300,000 City of Robbinsdale IDR, Unicare Homes, Inc., Ser. 1984, (LOC: Banque Paribas), 3.60%, VRDN.................... 2,300,000 4,420,000 Dakota & Washington Counties Hsg. & Redev. Auth., ARB MERLOTS, Ser. J, (LOC: Corestates Bank, N.A.), 4.20%, 9/1/97.................. 4,420,000
(CONTINUED) 23 EVERGREEN (Evergreen Graphic TAX EXEMPT MONEY MARKET FUND Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997
PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED MINNESOTA-- CONTINUED $ 4,220,000 Minneapolis GO Sports Arena, MSTR Ser. 1996A, (LIQ: Norwest Bank, MN), 3.55%, VRDN.................... $ 4,220,000 765,000 Minneapolis/St. Paul Hsg. Fin. Bd. RB, Minneapolis/Saint Paul Fam. Hsg. Prog., Phase VI, ARB, (COLL: GNMA), 4.00%, 11/1/97................. 765,000 1,960,000 Plymouth, Minnesota MHRB, At- the-Lakes Apts., (LOC: FNMA), 3.70%, VRDN.................... 1,960,000 1,510,000 Richfield Independent School District #280, MSTR Ser. 1994P, (LIQ: First Bank, N.A. & Ins. by FGIC), 3.55%, VRDN.................... 1,510,000 750,000 Southern Minnesota Muni. Pwr. Agy. Supply Sys., MSTR Ser. 1996I, (LIQ: Norwest Bank, MN & Ins. by FGIC), 3.55%, VRDN.................... 750,000 1,000,000 Spring Lake Park ISD No. 16, MSTR Ser. 1996G, (LIQ: Norwest Bank, MN & Ins. by MBIA), 3.55%, VRDN.................... 1,000,000 24,200,000 St. Louis Park Hlth. Care Fac. RB Fltg. Tr. Cert., (LIQ: Norwest Bank, MN & Ins. by AMBAC), 3.55%, VRDN.................... 24,200,000 83,165,000 MISSOURI-- 0.4% 4,330,000 Missouri Dev. Fin. Bd. IDRB, Cook Composites & Polymers Co., Ser. 1994, (LOC: Societe Generale), 3.80%, VRDN.................... 4,330,000 MONTANA-- 0.1% 710,000 Butte Silver Bow City & County, Copper City Assn., Ser. 1988, (LOC: Bank of America, N.T. & S.A.), 3.55%, VRDN.................... 710,000 NEBRASKA-- 0.4% 4,200,000 Lancaster County IDRB, Mid- America, Inc., Ser. 1994, (LOC: Heller Finl., Inc.), 3.90%, VRDN.................... 4,200,000 PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED NEW JERSEY-- 4.1% County of Essex, BAN, $ 5,000,000 Ser. 1997A 4.25%, 8/7/98......... $ 5,013,880 15,000,000 Ser. 1996A 4.50%, 9/17/97........ 15,002,836 4,220,000 Jersey City, Refunding Notes, Real Property Tax Appeals, 4.13%, 1/16/98................. 4,221,880 10,000,000 Jersey City, BAN, 4.75%, 9/26/97................. 10,004,601 8,140,000 Jersey City, Refunding Notes, 4.30%, 9/26/97................. 8,139,181 42,382,378 NEW MEXICO-- 0.5% 4,855,000 County of Sandoval MHRB, Arrowhead Ridge Apts., Ser. 1996-ARB, (FGIC), 4.65%, 12/31/97................ 4,855,000 NEW YORK-- 9.0% Battery Park City Auth. Hsg. RB, Marina Towers Tender Corp., (LOC: Sumitomo Bank Ltd.): 8,560,000 Ser. A, 3.85%, VRDN.................... 8,560,000 7,765,000 Ser. B, 3.85%, VRDN.................... 7,765,000 26,200,000 New York City Municipal Wtr. Fin. Auth., Wtr. & Swr. RB (LOC: Societe General & Ins. by MBIA), 3.45%, VRDN.................... 26,200,000 32,600,000 New York City GO, Series L, (LIQ: Merrill Lynch), 3.50%, VRDN.................... 32,600,000 10,100,000 New York State Med. Care Fac. Finance Agency RB, Fltg-Rate Rcpts. PT-100, (LIQ: Credit Suisse & Ins. by FHA), 4.00%, VRDN.................... 10,100,000 8,305,000 New York State Thruway Auth. General RB, MSTR-SG119, (LIQ: Societe Generale), 3.80%, VRDN.................... 8,305,000 93,530,000 NORTH CAROLINA-- 0.7% 3,600,000 Cabarrus County Indl. Fac. PCRB, Oiles America Corp., Ser. 1989, (LOC: Indl. Bank of Japan, Ltd., NY), 4.00%, VRDN.................... 3,600,000
(CONTINUED) 24 EVERGREEN TAX EXEMPT MONEY MARKET FUND (Evergreen Graphic Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997
PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED NORTH CAROLINA-- CONTINUED $ 3,000,000 Guilford County Indl. Fac. PCRB Sewage Disp., High Pt. Chem., Ser. 1994, (LOC: Sumitomo Bank, Ltd., NY), 3.70%, VRDN.................... $ 3,000,000 470,000 NCNB Pooled Tax-Exempt Tr. COP, Ser. 1990A, (LOC: NationsBank, N.A.), 4.25%, VRDN.................... 470,000 7,070,000 OHIO-- 0.4% Ohio Hsg. Fin. Agy. MHRB: Pine Crossing Project, (LOC: Sumitomo Bank, Ltd.), 1,130,000 3.85%, VRDN...................... 1,130,000 3,000,000 10 Wilmington Place, Ser. 1991B, (LIQ: Fuji Bank, Ltd. & Ins. by FSA), 3.80%, VRDN.................... 3,000,000 4,130,000 OREGON-- 0.4% Oregon EDRB Series CLVI: (LOC: Union Bank of California, N.A.), 1,830,000 Pacific Coast Seafoods Co., 3.75%, VRDN.................... 1,830,000 1,130,000 Pacific Oyster Co., 3.75%, VRDN.................... 1,130,000 1,200,000 Oregon State EDRB; Georgia- Pacific Corp., 95A Project, (LOC: Deutsche Genossen- schaftshank), 3.65%, VRDN.................... 1,200,000 4,160,000 PENNSYLVANIA-- 5.2% 2,400,000 Chartiers Valley Industrial and Commercial Dev. Auth., William Penn Place Project, (LOC: Corestates Bank, N.A.), 4.10%, VRDN.................... 2,400,000 2,855,000 Chester County IDA Mfg. Fac. RB, Devault Packing Co., Inc., Ser. 1995, (LOC: Corestates Bank, N.A.), 3.65%, VRDN.................... 2,855,000 8,100,000 City of Philadelphia GO, Ser. 1990 TECP, (LOC: Fuji Bank, Ltd. NY), 3.90%, 9/15/97................. 8,100,000 PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED PENNSYLVANIA-- CONTINUED $10,000,000 City of Philadelphia Water and Waste Water Rev., MSTR #11 ARB, (LIQ: Bear Stearns Capital Markets & Ins. by FGIC), 4.15%, 6/4/98*................. $ 10,000,000 500,000 Elk County IDA-IDRB Ref., Stackpole Corp. Project, Ser. 1989, (LOC: Fleet Bank, N.A.), 4.33%, VRDN.................... 500,000 650,000 Lawrence County IDA-PCRB, Calgon Carbon, Ser. 1983A, (Gtd. by Merck & Co.), 3.85%, VRDN.................... 650,000 1,990,000 Monroe County IDA-RB, United Steel, Ser. A, (LOC: Corestates Bank, N.A.), 3.65%, VRDN.................... 1,990,000 1,200,000 Montgomery County IDA-RB, Laneko Engineering Co., Ser. 1995, (LOC: Corestates Bank, N.A.), 3.65%, VRDN.................... 1,200,000 13,250,000 Montgomery County PA Higher Ed. and Hlth Auth. RB, Higher Education on Health Loan, (LOC: Dauphin Deposit Bank & Trust), 3.50%, VRDN.................... 13,250,000 1,000,000 Montgomery County Series A IDA-RB, Noesc Tech. Inc., (LOC: Corestates Bank, N.A.), 3.65%, VRDN.................... 1,000,000 1,235,000 Pennsylvania Econ. Dev. Fin. Auth. RB, C.F. Martin & Co., Inc., Ser. H, (LOC: Corestates Bank, N.A.), 3.65%, VRDN.................... 1,235,000 3,460,000 Pennsylvania Hsg. Fin. Agy. MERLOTS, Ser. I-ARB, (LOC: Corestates Bank, N.A.), 4.125%, 10/1/97................ 3,460,000 920,000 Reading School District GO, Ser. 1997, 3.95%, 1/15/98................. 920,315 2,000,000 Schuylkill County IDA-RB, Craftex Mills, Inc., (LOC: Corestates Bank, N.A.), 3.65%, VRDN.................... 2,000,000 1,945,000 West Cornwall Twp. Muni. Auth. RB, Lebanon Valley Brethren Home, Ser. 1995, (LOC: Corestates Bank, N.A.), 3.60%, VRDN.................... 1,945,000
(CONTINUED) 25 EVERGREEN (Evergreen Graphic TAX EXEMPT MONEY MARKET FUND Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997
PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED PENNSYLVANIA-- CONTINUED $ 3,065,000 Westmoreland County IDA-IDRB, White Consolidated Ind., Inc., ARB, (LOC: Bank of Nova Scotia), 4.35%, 12/1/97................. $ 3,067,957 54,573,272 SOUTH CAROLINA-- 2.3% 3,500,000 Darlington County IDA-IDRB, Hobert Corp., Ser. 1995, (LOC: Fuji Bank, Ltd.), 3.85%, VRDN.................... 3,500,000 Georgetown County SC, PCRB, International Paper Project, ARB, (Gtd. by International Paper): 4,780,000 4.00%, 9/1/97.................... 4,780,000 11,250,000 4.00%, 9/1/98.................... 11,250,000 950,000 South Carolina Jobs EDA Hosp. Facs. RB, Beloit Corp., (LOC: Cr. Coml. de France), 3.85%, VRDN.................... 950,000 South Carolina Jobs EDA-EDRB: 600,000 Ridge Pallets, Ser. B, (LOC: Cr. Coml. de France), 3.85%, VRDN.................... 600,000 2,700,000 Roller Bearing Co., Ser. 1994A, (LOC: Heller Finl. Inc.), 4.10%, VRDN.................... 2,700,000 750,000 Tuttle Co., Inc., Ser. A, (LOC: NationsBank, N.A.), 3.85%, VRDN.................... 750,000 24,530,000 SOUTH DAKOTA-- 0.5% 5,285,000 Rapid City EDRB, Civic Center Assoc., (LOC: CitiBank, N.A.), 3.65%, VRDN.................... 5,285,000 400,000 South Dakota EDA-RB, Lumar Development Co., (LOC: First Bank, N.A.), 3.65%, VRDN.................... 400,000 5,685,000 TENNESSEE-- 6.1% 2,600,000 Bristol IDB, Robinette Co., (LOC: First American Nat'l Bank), 3.80%, VRDN.................... 2,600,000 PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED TENNESSEE-- CONTINUED IDB of Met. Govt. of Nashville & Davidson County, Ser. 1989: (LOC: Sumitomo Bank Ltd.), $ 8,995,000 Beechwood Terrace Apts., 3.65%, VRDN.................... $ 8,995,000 4,680,000 Belle Valley, 3.65%, VRDN.................... 4,680,000 6,710,000 Graybrook Apts., 3.65%, VRDN.................... 6,710,000 3,200,000 IDB of the City Chattanooga RRB, Radisson Read House, Ser. 1995, (LOC: Heller Finl. Inc.), 4.20%, VRDN.................... 3,200,000 5,000,000 IDB of the City of Morristown IDRB, Camvac Intl., Inc., Ser. 1983, (LOC: ABN Amro Bank), 3.725%, VRDN................... 5,000,000 4,400,000 Jackson Tennessee Hlth. and Ed. Hsg. Fac. RB, Union University, (LOC: First American Nat'l Bank), 3.65%, VRDN.................... 4,400,000 10,000,000 Johnson City Sales Tax RB, MSTR- SGAYS, (LOC: Societe Generale & Ins. by FGIC), 3.50%, VRDN.................... 10,000,000 5,000,000 Maryville IDB of Ed., RB, Maryville College (LOC: First American Nat'l Bank), 3.65%, VRDN.................... 5,000,000 700,000 Metro Government Nashville & Davidson County IDRB, (LOC: First Bank, N.A.), 3.75%, VRDN.................... 700,000 500,000 Shelby County Tennessee Hlth., Ed. and Hsg., MHRB, 99 Tower Place, (LOC: Boatman's Bank, St. Louis, MO), 4.05%, VRDN.................... 500,000 4,285,000 Smyrna Hsg. Assn. MHRB, Imperial Gardens Apts., Ser. 1989, (LOC: Sumitomo Bank, Ltd.), 3.65%, VRDN.................... 4,285,000 8,000,000 Wilson County, Knight Leasing Co., IDRB, (LOC: First American Nat'l Bank), 3.80%, VRDN.................... 8,000,000 64,070,000
(CONTINUED) 26 EVERGREEN TAX EXEMPT MONEY MARKET FUND (Evergreen Graphic Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997
PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED TEXAS-- 7.1% $10,890,000 Aldine Independent School District, MSTR SGB30 (LOC: Societe Gen'l & Gtd. by Permanent School Fund), 3.40%, VRDN.................... $ 10,890,000 2,900,000 Dallas Indl. Dev. Corp. RB, Crane Plumbing Project, 3.85%, VRDN.................... 2,900,000 4,000,000 Dallas Independent School District, MSTR#6, Class A-ARB, (LIQ: Credit Suisse & Gtd. by Permanent School Fund), 4.00%, 12/8/97*................ 4,000,000 5,985,000 Galveston Hsg. Fin. Corp. MHRB Ref., Village by the Sea Apt., Ser. 1993, (LIQ: Sumitomo Bank, Ltd. & Ins. by FHA), 3.60%, VRDN.................... 5,985,000 7,005,000 NCNB Pooled Tax-Exempt Tr. COP, Ser. 1990B, (LOC: NationsBank of Texas), 4.25%, VRDN.................... 7,005,000 4,000,000 Port of Corpus Christi Auth. Nueces County RRB, Union Pacific Corp., Ser. 1989 TECP, (Gtd. by Union Pacific Corp.), 4.00%, 12/19/97................ 4,000,000 34,825,000 San Antonio Electric and Gas RB, MSTR SG104 (LIQ: Societe Generale), 3.55%, VRDN.................... 34,825,000 4,380,000 Tarrant County Hsg. Fin. Corp. MHRB Ref., Lincoln Meadows Project, Ser. 1988 ARB, (Surety Bond: Continental Casualty Corp.), 4.10%, 12/1/97................. 4,379,879 73,984,879 UTAH-- 5.4% 2,700,000 Summit County IDRB, Hornes' Kimball Junction L.P., Ser. 1985, (LOC: West One Bank, Idaho), 3.85%, VRDN.................... 2,700,000 Tooele County Hazardous Waste Treatment RB, Union Pacific Corp., Ser. A, TECP, (Gtd. by Union Pacific Corp.): 10,000,000 4.00%, 11/24/97.................. 10,000,000 10,000,000 4.00%, 11/25/97.................. 10,000,000 17,500,000 4.10%, 10/23/97.................. 17,500,000 10,000,000 4.15%, 9/10/97................... 10,000,000 6,290,000 4.15%, 9/15/97................... 6,290,000 56,490,000 PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED VERMONT-- 0.2% $ 2,000,000 Burlington Wastewater Revenue TRANS, 5.60%, 1/30/98................. $ 2,012,867 VIRGINIA-- 0.9% 2,900,000 Henrico County IDA RB, San-J, (LOC: Tokai Bank, Ltd.), 3.85%, VRDN.................... 2,900,000 5,000,000 Richmond County Indl. Fac. PCRB, Cogentrix of Richmond, (LOC: Banque Paribas), 4.10%, VRDN.................... 5,000,000 1,000,000 Rockingham County IDA-PCRB, Merck & Co., Inc., Ser. 1983A, (Gtd. by Merck & Co.), 3.60%, VRDN.................... 1,000,000 8,900,000 WASHINGTON-- 1.5% 2,200,000 Klickitat County Pub. Corp. RB, Mercer Ranches, Ser. 1996, (LOC: U.S. Bank of Washington, N.A.), 3.90%, VRDN.................... 2,200,000 2,000,000 Pierce County Econ. Dev. Corp., McFarland Cascade, (LOC: U.S. Bank of Washington, N.A.), 3.90%, VRDN.................... 2,000,000 Pilchuck Dev. Pub. Corp. IDRB, (LOC: U.S. Bank of Washington, N.A.): 1,318,000 Canyon Park Assn., -Lot 12, 3.80%, VRDN.................... 1,318,000 966,000 Hillside Assn., -Lot 6, 3.80%, VRDN.................... 966,000 1,218,000 Omni Assn., -Lot 7, 3.80%, VRDN.................... 1,218,000 7,950,000 Romac Industries, Inc., Ser. 1995, (LOC: Union Bank of California, N.A.), 3.60%, VRDN.................... 7,950,000 15,652,000 OTHER-- 5.8% 14,900,000 Capital Investors Tax Exempt Fund, Ltd. Partnership, Series 1996-Z, (LOC: Swiss Bank Corp.), 3.60%, VRDN.................... 14,900,000 4,500,000 Puttable Floating Option Tax Exempt Receipts, PPT-6, (LOC: Credit Suisse), 3.95%, VRDN.................... 4,500,000
(CONTINUED) 27 EVERGREEN (Evergreen Graphic TAX EXEMPT MONEY MARKET FUND Goes Here) SCHEDULE OF INVESTMENTS August 31, 1997
PRINCIPAL AMOUNT VALUE SHORT-TERM INVESTMENTS-- CONTINUED OTHER-- CONTINUED $19,790,000 Puttable Floating Option Tax Exempt Receipts, PPT-7, (LOC: Credit Suisse), 3.95%, VRDN.................... $ 19,790,000 2,395,000 Puttable Floating Option Tax Exempt Receipts, PPT-4, (Ins. by AMBAC), 3.90%, VRDN.................... 2,395,000 9,210,000 Puttable Floating Option Tax Exempt Receipts, Koch Financial Corp., (LIQ: Credit Suisse & Ins. by AMBAC), 3.50%, VRDN.................... 9,210,000 5,035,000 Puttable Floating Option Tax Exempt Receipts, PPT-5, (LIQ: Credit Suisse & Ins. by FHA), 3.50%, VRDN.................... 5,035,000 4,554,855 Tax Exempt Private Municipal Trust, Koch Financial Corp., Series 1997-1 Tax-Exempt Lease Certificate Traunche A, 4.10%, 5/6/98*................. 4,554,855 60,384,855 TOTAL INVESTMENTS-- (COST $1,040,038,783).. 99.6% 1,040,038,783 OTHER ASSETS AND LIABILITIES-- NET...... 0.4 4,387,431 NET ASSETS--............. 100.0% $1,044,426,214
SUMMARY OF ABBREVIATIONS: AMBAC American Municipal Bond Assurance Corp. ARB Adjustable Rate Bonds BAN Bond Anticipation Note COLL Collateral COP Certificates of Participation EDA Economic Development Authority EDRB Economic Development Revenue Bond FGIC Financial Guaranty Insurance Co. FHA Federal Housing Authority FHLB Federal Home Loan Bank FNMA Federal National Mortgage Association FSA Financial Security Assurance Inc. GIC Guaranteed Investment Contract GNMA Government National Mortgage Association GO General Obligations HFA Housing Finance Authority IDA Industrial Development Authority IDB Industrial Development Board IDR Industrial Development Revenue IDRB Industrial Development Revenue Bond ISD Independent School District LIQ Liquidity Provider LOC Letter of Credit MBIA Municipal Bond Investors Assurance Corp. MERLOTS Municipal Exempt Receipts Liquidity Option Tenders MHRB Multifamily Housing Revenue Bond MSTR Municipal Securities Trust Receipt PCRB Pollution Control Revenue Bond RB Revenue Bonds RRB Refunding Revenue Bonds TECP Tax Exempt Commercial Paper TRANS Tax Revenue Anticipation Notes VRDN Variable Rate Demand Notes * Securities may be sold to "qualified institutional buyers" under Rule 144A or securities offered pursuant to Section 4(2) of the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. Adjustable Rate Bonds are puttable back to the issuer or other parties not affiliated with the issuer at par on the interest reset dates. Interest rates are determined and set by the issuer quarterly, semi-annually or annually depending upon the terms of the security. Interest rates and reset dates presented for these securities are those in effect at August 31, 1997. Variable Rate Demand Notes are payable on demand on no more than seven calendar days notice given by the Fund to the issuer or other parties not affiliated with the issuer. Interest rates are determined and reset by the issuer daily, weekly, or monthly depending upon the terms of the security. Interest rates presented for these securities are those in effect at August 31, 1997. Certain obligations held in the portfolio have credit enhancements or liquidity features that may, under certain circumstances, provide for repayment of principal and interest on the obligation upon demand date, interest rate reset date or final maturity. These enhancements include: letters of credit, liquidity guarantees, standby bond purchase agreements, tender option purchase agreements, and third party insurance (i.e. AMBAC, FGIC and MBIA). Adjustable rate bonds and variable rate demand notes held in the portfolio may be considered derivative securities within the standards imposed by the Securities and Exchange Commission under Rule 2a-7 which were designed to minimize both credit and market risk. SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 28 EVERGREEN TREASURY MONEY MARKET FUND (Evergreen Graphic Goes Here) SCHEDULE OF INVESTMENTS August 31, 1997
PRINCIPAL AMOUNT VALUE UNITED STATES TREASURY NOTES-- 31.8% $110,000,000 6.00%, 9/2/97***.............. $ 110,000,000 185,000,000 5.75%, 9/30/97***............. 185,024,352 50,000,000 5.75%, 10/31/97............... 50,009,276 75,000,000 6.00%, 11/30/97............... 75,023,570 175,000,000 5.25%, 12/31/97***............ 174,828,048 75,000,000 6.125%, 3/31/98............... 75,140,658 50,000,000 5.875%, 4/30/98............... 49,994,621 135,000,000 6.25%, 6/30/98................ 135,548,782 110,000,000 4.75%-- 6.125%, 8/31/98....... 109,666,028 TOTAL UNITED STATES TREASURY NOTES (COST $965,235,335)......... 965,235,335 REPURCHASE AGREEMENTS*-- 82.0% 19,136,406 Aubrey G. Lanston, 5.55%, dated 8/29/97, due 9/2/97 (1).................. 19,136,406 90,000,000 Barclays Bank, PLC, 5.56%, dated 8/29/97, due 9/2/97 (2).............. 90,000,000 100,000,000 Dean Witter Reynolds, Inc., 5.53%, dated 8/29/97, due 9/2/97 (3).................. 100,000,000 140,000,000 Deutsche Bank GC, 5.57%, dated 8/29/97, due 9/2/97 (4).............. 140,000,000 140,000,000 Donaldson, Lufkin & Jenrette Securities Corp., 5.53%, dated 8/29/97, due 9/2/97 (5)......................... 140,000,000 100,000,000 Dresdner Bank AG, 5.64%, dated 8/29/97, due 9/2/97 (6).............. 100,000,000 111,237,500 Dresdner Bank AG, 5.64%, dated 8/29/97, due 9/2/97 (7)**............ 111,237,500 40,200,000 Dresdner Bank AG, 5.7%, dated 8/29/97, due 9/2/97 (8)**................ 40,200,000 177,843,750 Dresdner Bank AG, 5.85%, dated 8/29/97, due 9/2/97 (9)**................ 177,843,750 PRINCIPAL AMOUNT VALUE REPURCHASE AGREEMENTS*-- CONTINUED $140,000,000 First Boston Corp., 5.53%, dated 8/29/97, due 9/2/97 (10)........................ $ 140,000,000 140,000,000 HSBC, 5.57%, dated 8/29/97, due 9/2/97 (11)............. 140,000,000 300,000,000 Lehman Brothers, Inc., 5.50%, dated 8/29/97, due 9/2/97 (12)................. 300,000,000 140,000,000 Merrill Lynch, Pierce, Fenner & Smith, 5.55%, dated 8/29/97, due 9/2/97 (13).... 140,000,000 140,000,000 Morgan Guaranty Trust Co. of New York, 5.56%, dated 8/29/97, due 9/2/97 (14).... 140,000,000 50,000,000 NationsBank, Charlotte, NC, 5.53%, dated 8/29/97, due 9/2/97 (15)................. 50,000,000 210,000,000 Smith Barney Shearson, Inc., 5.57%, dated 8/29/97, due 9/2/97 (16)................. 210,000,000 145,725,000 Smith Barney Shearson, Inc., 5.75%, dated 8/29/97, due 9/2/97 (17)**............... 145,725,000 300,000,000 Union Bank Switzerland, 5.59%, dated 8/29/97, due 9/2/97 (18)................. 300,000,000 TOTAL REPURCHASE AGREEMENTS (COST $2,484,142,656)....... 2,484,142,656 SHARES MUTUAL FUND SHARES-- 1.6% (COST $49,315,922) 49,315,922 Fidelity U.S. Treasury, Inc. Portfolio................... 49,315,922 TOTAL INVESTMENTS-- (COST $3,498,693,913)....... 115.4% 3,498,693,913 OTHER ASSETS AND LIABILITIES-- NET... (15.4) (467,013,500) NET ASSETS............ 100.0% $3,031,680,413
(CONTINUED) 29 EVERGREEN (Evergreen Graphic TREASURY MONEY MARKET FUND Goes Here) SCHEDULE OF INVESTMENTS (CONTINUED) August 31, 1997 * Collateralized by: (1) $15,934,000 U.S. Treasury Notes, 5.625% to 8.875%, 1/15/00 to 11/30/00; value including accrued interest-- $16,388,876, $3,120,000 U.S. Treasury Bonds, 6.50% to 6.625%, 11/15/26 to 2/15/27; value including accrued interest-- $3,132,341. (2) $27,102,000 U.S. Treasury Bills, 11/13/97 to 8/20/98; value including accrued interest-- $26,192,415, $51,225,000 U.S. Treasury Bonds, 9.25%, 2/15/16; value including accrued interest-- $65,608,213. (3) $357,182,000 U.S. Treasury Strips, 11/15/97 to 8/15/25; value including accrued interest-- $102,000,016. (4) $13,821,000 U.S. Treasury Bills, 11/13/97; value including accrued interest-- $13,671,982, $52,198,000 U.S. Treasury Notes, 6.625%, 7/31/01; value including accrued interest-- $53,339,142, $26,899,000 U.S. Treasury Bonds, 14.25%, 2/15/02; value including accrued interest-- $34,226,067 and $59,973,000 GNMA, 5.50% to 9.50%, 1/1/00 to 4/15/29; value including accrued interest-- $40,063,252. (5) $22,982,000 U.S. Treasury Notes, 8.00% to 8.875%, 11/15/98 to 5/15/01; value including accrued interest-- $24,047,930 and $55,561,000 U.S. Treasury Bonds, 6.00%, 2/15/26; value including accrued interest-- $50,678,667, $177,031,000 U.S. Treasury Strips, 11/15/97 to 8/15/21; value including accrued interest-- $68,073,977. (6) $90,180,000 U.S. Treasury Bonds, 6.50% to 9.25%, 2/15/16 to 11/15/26; value including accrued interest-- $102,004,192. (7) $116,526,310 GNMA, 7.50% to 8.50%; value including accrued interest-- $114,416,627. (8) $2,600,000 U.S. Treasury Notes, 6.125%, 7/31/00; value including accrued interest-- $2,618,244, $40,200,757 GNMA, 6.50% to 7.50%; value including accrued interest-- $38,819,048. (9) $50,000,000 U.S. Treasury Notes, 6.50%, 8/15/05; value including accrued interest-- $50,608,142, $128,400,000 U.S. Treasury Bonds, 6.00% to 11.25%, 2/15/15 to 2/15/26; value including accrued interest-- $130,945,206 and $2,300,000 GNMA, 8.50%; value including accrued interest-- $1,499,795. (10) $137,932,000 U.S. Treasury Notes, 6.75% to 7.75%, 2/15/98 to 2/15/05; value including accrued interest-- $144,179,245. (11) $143,930,000 U.S. Treasury Bills, 10/23/97; value including accrued interest-- $142,804,471. (12) $486,244,112 GNMA, 5.50% to 11.25%, 5/20/99 to 8/20/27; value including accrued interest-- $305,965,182. (13) $110,393,000 U.S. Treasury Bonds, 7.625% to 14.00%, 2/15/07 to 11/15/11; value including accrued interest-- $142,804,948. (14) $135,815,000 U.S. Treasury Notes, 5.875% to 7.75%, 8/15/98 to 11/30/99; value including accrued interest-- $137,374,570, $5,510,000 U.S. Treasury Bills, 12/18/97; value including accrued interest-- $5,426,072. (15) $49,625,000 U.S. Treasury Notes, 6.375%, 4/30/99; value including accrued interest-- $49,660,151. (16) & (17) $9,177,000 U.S. Treasury Bills, 2/19/98; value including accrued interest-- $8,948,025, $29,338,000 U.S. Treasury Notes, 5.25% to 6.875%, 9/30/98 to 5/15/06; value including accrued interest-- $29,858,352, $8,254,000 REMIC, 7.00% to 8.00%, 6/15/06 to 5/20/24; value including accrued interest-- $5,965,419, $90,830,000 U.S. Treasury Strips, 8/15/03 to 11/15/18; value including accrued interest-- $37,628,410 and $409,435,458 GNMA, 5.00% to 17.00%, 11/15/97 to 8/20/27; value including accrued interest-- $278,397,905. (18) $377,414,341 GNMA, 6.00% to 9.50%; value including accrued interest-- $306,004,521. ** Represents investment of cash collateral received for securities on loan. *** Securities on loan (See Note 3). SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 30 EVERGREEN (Evergreen Graphic STATEMENTS OF ASSETS AND LIABILITIES Goes Here) August 31, 1997
(Logo) (Logo) (Logo) (Logo) MONEY PENNSYLVANIA TAX EXEMPT TREASURY MARKET TAX-FREE MONEY MONEY MARKET MONEY MARKET FUND MARKET FUND FUND FUND ASSETS Investments in securities.............................. $3,464,439,268 $ 67,388,340 $1,040,038,783 $1,014,551,257 Investments in repurchase agreements................... 0 0 0 2,484,142,656 Investments at market value (identified cost- $3,464,439,268, $67,388,340, $1,040,038,783 and $3,498,693,913, respectively)...................... 3,464,439,268 67,388,340 1,040,038,783 3,498,693,913 Cash................................................... 67,134 0 2,703,051 0 Interest receivable.................................... 13,537,719 525,390 7,232,591 28,945,172 Receivable for investments sold........................ 0 0 11,488,005 0 Receivable for Fund shares sold........................ 6,471,028 0 1,342,565 1,798,592 Prepaid expenses and other assets...................... 161,476 3,819 44,994 71,884 Total assets....................................... 3,484,676,625 67,917,549 1,062,849,989 3,529,509,561 LIABILITIES Payable for securities on loan......................... 0 0 0 483,676,736 Payable for investments purchased...................... 0 0 15,750,000 0 Payable for Fund shares redeemed....................... 6,322,523 0 0 549,886 Dividends payable...................................... 9,949,004 85,439 1,703,837 10,996,800 Due to custodian....................................... 0 29,154 0 0 Distribution fee payable............................... 1,390,333 8,492 360,161 1,266,292 Due to related parties................................. 1,316,976 54,127 452,256 994,434 Accrued Trustees' fees and expenses.................... 45,487 5,102 25,000 132,000 Accrued professional fees.............................. 26,700 17,900 24,500 6,432 Accrued expenses and other liabilities................. 301,736 12,953 108,021 206,568 Total liabilities.................................. 19,352,759 213,167 18,423,775 497,829,148 NET ASSETS............................................... $3,465,323,866 $ 67,704,382 $1,044,426,214 $3,031,680,413 NET ASSETS REPRESENTED BY Paid-in capital........................................ $3,465,958,299 $ 67,714,599 $1,044,687,001 $3,031,630,773 Undistributed net investment income.................... 2,555 0 0 49,640 Accumulated net realized gain (loss) on investments.... (636,988) (10,217) (260,787) 0 TOTAL NET ASSETS................................... $3,465,323,866 $ 67,704,382 $1,044,426,214 $3,031,680,413 NET ASSETS CONSIST OF Class A................................................ $2,802,600,125 $ 35,728,195 $ 666,745,832 $2,484,759,269 Class B................................................ 22,872,405 -- -- -- Class C................................................ 5,086,778 -- -- -- Class K................................................ 105,412 -- -- -- Class Y................................................ 634,659,146 31,976,187 377,680,382 546,921,144 $3,465,323,866 $ 67,704,382 $1,044,426,214 $3,031,680,413 SHARES OUTSTANDING Class A................................................ 2,802,742,607 35,729,874 666,866,419 2,484,732,831 Class B................................................ 22,875,453 -- -- -- Class C................................................ 5,088,082 -- -- -- Class K................................................ 105,412 -- -- -- Class Y................................................ 635,220,110 31,984,725 377,781,716 546,914,493 NET ASSET VALUE PER SHARE Class A................................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 Class B................................................ $ 1.00 -- -- -- Class C................................................ $ 1.00 -- -- -- Class K................................................ $ 1.00 -- -- -- Class Y................................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00
SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 31 EVERGREEN (Evergreen Graphic Goes Here) STATEMENTS OF OPERATIONS Year Ended August 31, 1997
(Logo) (Logo) (Logo) (Logo) MONEY PENNSYLVANIA TAX EXEMPT TREASURY MARKET TAX-FREE MONEY MONEY MARKET MONEY MARKET FUND MARKET FUND FUND FUND INVESTMENT INCOME Interest............................................... $159,154,235 $2,481,018 $ 45,162,514 $168,500,697 EXPENSES Management fee......................................... 13,092,396 275,516 5,695,367 10,831,288 Distribution Plan expenses............................. 6,359,402 90,259 1,988,796 7,263,329 Transfer agent fees.................................... 923,159 20,100 213,468 184,287 Custodian fees......................................... 545,241 39,336 266,070 580,475 Administrative services fees........................... 0 27,793 0 1,241,466 Professional fees...................................... 32,998 15,890 37,267 28,199 Trustees' fees and expenses............................ 53,364 5,512 25,813 65,862 Other.................................................. 595,807 24,404 123,733 203,935 Fee waivers and/or expense reimbursements.............. (1,482,584) (123,088) (183,559) (132,244) Total expenses..................................... 20,119,783 375,722 8,166,955 20,266,597 Less: Indirectly paid expenses......................... (21,867) (88) (27,673) (9,969) Net expenses....................................... 20,097,916 375,634 8,139,282 20,256,628 NET INVESTMENT INCOME.................................. 139,056,319 2,105,384 37,023,232 148,244,069 Net realized loss on investments....................... (85,308) 0 (2,907) 0 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..... $138,971,011 $2,105,384 $ 37,020,325 $148,244,069
SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 32 EVERGREEN (Evergreen Graphic STATEMENTS OF CHANGES IN NET ASSETS Goes Here) Year Ended August 31, 1997
(Logo) (Logo) (Logo) (Logo) MONEY PENNSYLVANIA TAX EXEMPT TREASURY MARKET TAX-FREE MONEY MONEY MARKET MONEY MARKET FUND MARKET FUND FUND FUND OPERATIONS Net investment income.................................. $ 139,056,319 $ 2,105,384 $ 37,023,232 $ 148,244,069 Net realized loss on investments....................... (85,308) 0 (2,907) 0 Net increase in net assets resulting from operations....................................... 138,971,011 2,105,384 37,020,325 148,244,069 DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME Class A................................................ (101,255,910) (905,311) (20,900,359) (114,457,775) Class B................................................ (509,494) 0 0 0 Class C................................................ (17,908) 0 0 0 Class K................................................ (2,220) 0 0 0 Class Y................................................ (37,268,232) (1,203,873) (16,122,873) (33,786,294) Total distributions to shareholders................ (139,053,764) (2,109,184) (37,023,232) (148,244,069) CAPITAL SHARE TRANSACTIONS Proceeds from shares sold.............................. 8,940,579,510 127,715,297 2,604,375,798 6,954,597,959 Proceeds from shares issued in acquisition of Keystone Liquid Trust......................................... 163,579,564 0 0 0 Proceeds from reinvestment of distributions............ 38,314,180 1,021,288 14,787,888 19,627,202 Payment for shares redeemed............................ (8,113,736,002) (131,543,821) (2,852,083,788) (7,310,208,436) Net increase (decrease) in net assets resulting from capital share transactions.................. 1,028,737,252 (2,807,236) (232,920,102) (335,983,275) Total increase (decrease) in net assets............ 1,028,654,499 (2,811,036) (232,923,009) (335,983,275) NET ASSETS Beginning of year...................................... 2,436,669,367 70,515,418 1,277,349,223 3,367,663,688 END OF YEAR............................................ $3,465,323,866 $ 67,704,382 $1,044,426,214 $3,031,680,413 Undistributed net investment income...................... $ 2,555 $ 0 $ 0 $ 49,640
SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 33 EVERGREEN (Evergreen Graphic Goes Here) STATEMENTS OF CHANGES IN NET ASSETS Prior Fiscal Periods
(Logo) (Logo) (Logo) (Logo) MONEY PENNSYLVANIA TAX-FREE TAX EXEMPT TREASURY MARKET MONEY MARKET FUND MONEY MARKET MONEY MARKET FUND YEAR ENDED FUND FUND YEAR ENDED SIX MONTHS ENDED FEBRUARY 29, YEAR ENDED YEAR ENDED AUGUST 31, 1996 AUGUST 31, 1996* 1996 AUGUST 31, 1996 AUGUST 31, 1996 OPERATIONS Net investment income......... $ 85,949,891 $ 1,091,227 $ 2,665,986 $ 36,638,019 $ 121,967,383 Net realized gain (loss) on investments................. (26,141) (378) (189) (6,227) 161,674 Net increase in net assets resulting from operations................ 85,923,750 1,090,849 2,665,797 36,631,792 122,129,057 DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME Class A....................... (63,327,347) (242,309) (9,466) (19,837,670) (101,441,299) Class B....................... (382,116) 0 0 0 0 Class Y....................... (22,240,428) (848,918) (2,656,520) (16,800,349) (20,526,084) Total distributions to shareholders.............. (85,949,891) (1,091,227) (2,665,986) (36,638,019) (121,967,383) CAPITAL SHARE TRANSACTIONS Proceeds from shares sold..... 6,275,701,649 61,460,030 179,632,522 2,572,408,736 6,442,829,718 Proceeds from shares issued in acquisition of: FFB Cash Management Fund.... 592,358,361 0 0 0 0 FFB Lexicon Cash Management Fund...................... 95,834,929 0 0 0 0 FFB Tax-Free Money Market Fund...................... 0 0 0 103,129,021 0 FFB U.S. Treasury Fund...... 0 0 0 0 1,070,672,333 FFB U.S. Government Fund.... 0 0 0 0 327,532,054 FFB 100% U.S. Treasury Fund...................... 0 0 0 0 28,227,573 Proceeds from reinvestment of distributions............... 28,242,023 621,908 1,766,790 16,202,992 17,972,077 Payment for shares redeemed... (5,531,191,681) (79,296,671) (137,207,686) (2,390,799,129) (5,974,992,600) Net increase (decrease) in net assets resulting from capital share transactions.............. 1,460,945,281 (17,214,733) 44,191,626 300,941,620 1,912,241,155 Total increase (decrease) in net assets........... 1,460,919,140 (17,215,111) 44,191,437 300,935,393 1,912,402,829 NET ASSETS Beginning of period........... 975,750,227 87,730,529 43,539,092 976,413,830 1,455,260,859 END OF PERIOD................. $2,436,669,367 $ 70,515,418 $ 87,730,529 $1,277,349,223 $3,367,663,688 Undistributed net investment income........................ $ 0 $ 3,800 $ 3,800 $ 0 $ 0
* The Fund changed its fiscal year end from February 29 to August 31. SEE COMBINED NOTES TO FINANCIAL STATEMENTS. 34 EVERGREEN (Evergreen Graphic COMBINED NOTES TO FINANCIAL STATEMENTS Goes Here) 1. SIGNIFICANT ACCOUNTING POLICIES The Evergreen Money Market Funds (the "Funds") consist of the Evergreen Money Market Fund ("Money Market Fund"), Evergreen Pennsylvania Tax-Free Money Market Fund ("Pennsylvania Tax-Free Money Market Fund"), Evergreen Tax Exempt Money Market Fund ("Tax Exempt Money Market Fund") and Evergreen Treasury Money Market Fund ("Treasury Money Market Fund"), known collectively as the "Funds". The Funds are all registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as diversified, open-end management investment companies. Money Market Fund is a series of Evergreen Money Market Trust, Pennsylvania Tax-Free Money Market Fund is a series of Evergreen Tax-Free Trust, Tax Exempt Money Market Fund is a series of Evergreen Municipal Trust and Treasury Money Market Fund is a series of Evergreen Investment Trust. Each Fund offers Class A and Class Y shares. In addition, the Money Market Fund offers Class B, Class C and Class K shares. Class A shares are sold at net asset value without a front-end sales charge. Class B and Class C shares pay a higher ongoing distribution fee than Class A shares. Class B shares 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 C shares are sold subject to a contingent deferred sales charge payable on shares redeemed within one year after the month of purchase. Class K shares are available for exchange by shareholders of any Keystone Classic Fund. The contingent deferred sales charge applicable to shares of the Keystone Classic Fund exchanged for Class K shares will carry over to the Class K shares received in the exchange. Class Y shares are not subject to any sales charges or distribution fees. Class Y shares are sold only to investment advisory clients of First Union Corporation ("First Union") and its affiliates, certain institutional investors or Class Y shareholders of record of certain other funds managed by First Union and its affiliates as of December 30, 1994. 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 Portfolio securities are valued at amortized cost which approximates market value. The amortized cost method involves valuing a security at cost on the date of purchase and thereafter assuming a straight-line amortization of any discount or premium. B. REPURCHASE AGREEMENTS Each Fund may invest in repurchase agreements. Securities pledged as collateral for repurchase agreements are held by the custodian on the Fund's behalf. Each Fund monitors the adequacy of the collateral daily and will require the seller to provide additional collateral in the event the market value of the securities pledged falls below the carrying value of the repurchase agreement, including accrued interest. Each Fund will only enter into repurchase agreements with banks and other financial institutions which are deemed by the investment adviser to be creditworthy pursuant to guidelines established by the Board of Trustees. C. SECURITIES LENDING In order to generate income and to offset expenses, the Funds may lend portfolio securities to brokers, dealers and other financial organizations. The Funds' investment adviser will monitor the creditworthiness of such borrowers. Loans of securities may not exceed 30% of a Fund's total assets and will be collateralized by cash, letters of credit or United States Government securities that are maintained at all times in an amount equal to at least 100% of the current market value of the loaned securities, including accrued interest. While such securities are on loan, the borrower will pay a Fund any income accruing thereon, and the Fund may invest the collateral in portfolio securities, thereby increasing its return. A Fund will have the right to call any such loan and obtain the securities loaned at any time on five days' notice. Any gain or loss in the market price of the loaned securities which occurs during the term of the loan would affect a Fund and its investors. A Fund may pay reasonable fees in connection with such loans. D. SECURITY TRANSACTIONS AND INVESTMENT INCOME Securities transactions are accounted for no later than one business day after the trade date. Realized gains and losses are computed on the identified cost basis. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums. E. FEDERAL INCOME TAXES The Funds have qualified and intend to continue to qualify as regulated investment companies under the Internal Revenue Code of 1986, as amended (the "Code"). Thus, the Funds will not incur any federal income tax liability since they are expected to distribute all of their net investment company taxable income, net tax-exempt income and net capital gains, if any, to their shareholders. The Funds also intend to avoid any excise tax liability by making the required distributions under the Code. Accordingly, no provision for federal income taxes is required. To the extent that realized capital gains can be offset by capital loss carryforwards, it is each Fund's policy not to distribute such gains. F. DISTRIBUTIONS Distributions from net investment income for each Fund are declared daily and paid monthly. Distributions from net realized capital gains, if any, are paid at least annually. Distributions to shareholders are recorded at the close of business on the ex-dividend date. Income and capital gains distributions to shareholders are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets. 35 EVERGREEN (Evergreen Graphic Goes Here) COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED) G. CLASS ALLOCATIONS Income, expenses (other than class specific expenses) and realized and unrealized gains and losses are prorated among the classes based on the relative net assets of each class. Currently, class specific expenses are limited to expenses incurred under the Distribution Plans for each class. 2. CAPITAL SHARE TRANSACTIONS The Money Market and Tax Exempt Money Market Funds have an unlimited number of $0.0001 par value shares of beneficial interest authorized. The Pennsylvania Tax-Free Money Market and Treasury Money Market Funds have an unlimited number of $.001 par value shares of beneficial interest authorized. The shares are divided into classes which are designated Class A and Class Y shares. In addition, the Money Market Fund offers Class B, Class C and Class K shares. Transactions in shares of beneficial interest (valued at $1.00 per share) of the Funds were as follows: YEAR ENDED AUGUST 31, MONEY MARKET FUND 1997 1996 CLASS A Shares sold..................................................... 4,913,816,942 3,360,065,151 Shares issued in acquisition of: FFB Cash Management Fund...................................... 0 592,362,245 Keystone Liquid Trust......................................... 151,861,145 0 Shares issued in reinvestment of distributions.................. 19,783,898 13,630,468 Shares redeemed................................................. (4,037,993,646) (2,895,924,591) Net increase.................................................... 1,047,468,339 1,070,133,273 CLASS B Shares sold..................................................... 22,383,686 13,107,126 Shares issued in acquisition of Keystone Liquid Trust........... 7,303,582 0 Shares issued in reinvestment of distributions.................. 442,030 307,330 Shares redeemed................................................. (17,471,935) (11,123,113) Net increase.................................................... 12,657,363 2,291,343
AUGUST 1, 1997 (COMMENCEMENT OF CLASS OPERATIONS) TO AUGUST 31, 1997 CLASS C Shares sold..................................................... 1,309,779 Shares issued in acquisition of Keystone Liquid Trust........... 4,493,120 Shares issued in reinvestment of distributions.................. 16,706 Shares redeemed................................................. (731,523) Net increase.................................................... 5,088,082 CLASS K Shares sold..................................................... 156,690 Shares issued in reinvestment of distributions.................. 208 Shares redeemed................................................. (51,486) Net increase.................................................... 105,412
YEAR ENDED AUGUST 31, 1997 1996 CLASS Y Shares sold..................................................... 4,002,912,413 2,902,529,372 Shares issued in acquisition of FFB Lexicon Cash Management Fund.......................................................... 0 95,834,876 Shares issued in reinvestment of distributions.................. 18,071,338 14,304,225 Shares redeemed................................................. (4,057,487,412) (2,624,143,977) Net increase (decrease)......................................... (36,503,661) 388,524,496
36 EVERGREEN (Evergreen Graphic COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED) Goes Here)
AUGUST 22, 1995 SIX MONTHS (COMMENCEMENT OF YEAR ENDED ENDED CLASS OPERATIONS) TO PENNSYLVANIA TAX-FREE MONEY MARKET FUND AUGUST 31, 1997 AUGUST 31, 1996 FEBRUARY 29, 1996 CLASS A Shares sold..................................................... 84,061,251 40,205,338 4,636,845 Shares issued in reinvestment of distributions.................. 196,984 35,417 3,934 Shares redeemed................................................. (70,724,545) (22,377,383) (307,967) Net increase.................................................... 13,533,690 17,863,372 4,332,812 SIX MONTHS YEAR ENDED ENDED YEAR ENDED AUGUST 31, 1997 AUGUST 31, 1996 FEBRUARY 29, 1996 CLASS Y Shares sold..................................................... 43,654,046 21,254,692 174,995,677 Shares issued in reinvestment of distributions.................. 824,304 586,491 1,762,856 Shares redeemed................................................. (60,819,276) (56,919,288) (136,899,719) Net increase (decrease)......................................... (16,340,926) (35,078,105) 39,858,814
YEAR ENDED AUGUST 31, TAX EXEMPT MONEY MARKET FUND 1997 1996 CLASS A Shares sold..................................................... 1,491,746,339 1,329,098,871 Shares issued in acquisition of FFB Tax-Free Money Market Fund.......................................................... 0 103,102,728 Shares issued in reinvestment of distributions.................. 3,081,550 3,435,421 Shares redeemed................................................. (1,488,596,189) (1,330,067,450) Net increase.................................................... 6,231,700 105,569,570 CLASS Y Shares sold..................................................... 1,112,629,458 1,243,309,865 Shares issued in reinvestment of distributions.................. 11,706,339 12,767,571 Shares redeemed................................................. (1,363,487,668) (1,060,731,679) Net increase (decrease)......................................... (239,151,871) 195,345,757
YEAR ENDED AUGUST 31, TREASURY MONEY MARKET FUND 1997 1996 CLASS A Shares sold..................................................... 4,767,671,119 4,828,856,886 Shares issued in acquisition of: FFB U.S. Treasury Fund........................................ 0 1,070,688,429 FFB U.S. Government Fund...................................... 0 327,554,031 FFB 100% U.S. Treasury Fund................................... 0 28,227,628 Shares issued in reinvestment of distributions.................. 16,715,941 16,836,594 Shares redeemed................................................. (4,907,328,690) (4,842,442,130) Net increase (decrease)......................................... (122,941,630) 1,429,721,438 CLASS Y Shares sold..................................................... 2,186,926,840 1,613,972,832 Shares issued in reinvestment of distributions.................. 2,911,261 1,135,483 Shares redeemed................................................. (2,402,879,746) (1,132,550,470) Net increase (decrease)......................................... (213,041,645) 482,557,845
3. SECURITIES TRANSACTIONS The Treasury Money Market Fund loaned securities during the year ended August 31, 1997 to certain brokers who paid the Fund a negotiated lenders' fee. These fees are included in interest income. The Fund received cash as collateral against the loaned securities in an amount at least equal to 100% of the market value of the loaned securities at the inception of each loan. The Fund monitors the adequacy of the collateral daily and will require the broker to provide additional collateral in the event the value of the collateral falls below 100% of the market value of the securities on loan. At August 31, 1997, the value of securities on loan and the value of collateral amounted to $469,852,400 and $475,006,250, respectively. During the year ended August 31, 1997, the Fund earned $499,529 in income from securities lending transactions. 37 EVERGREEN (Evergreen Graphic Goes Here) COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED) On August 31, 1997, the cost of investments for federal income tax purposes of each Fund was the same as for financial reporting purposes. As of August 31, 1997, the Funds had capital loss carryovers for federal income tax purposes as follows:
EXPIRATION 2001 2002 2003 2004 2005 Money Market Fund............................................... -- -- $517,000 -- $33,000 Pennsylvania Tax-Free Money Market Fund......................... -- $4,000 6,000 -- -- Tax Exempt Money Market Fund.................................... $177,000 -- 16,000 $65,000 --
4. DISTRIBUTION PLANS Evergreen Keystone Distributor, Inc. ("EKD"), a wholly-owned subsidiary of The BISYS Group Inc. ("BISYS"), serves as the principal underwriter to the Funds. The Funds have adopted Distribution Plans (the "Plans") for their Class A shares, Class B shares, Class C shares and Class K shares pursuant to Rule 12b-1 under the 1940 Act. The Plans permit each Fund to reimburse its principal underwriter for costs related to selling shares of the Fund and for various other services. These costs, which consist primarily of commissions and services fees to broker-dealers who sell shares of each Fund, are paid by the Fund and classified as "Distribution Plan expenses". Distribution Plan expenses are calculated daily and paid monthly. Under the terms of the Plans, the Funds may incur distribution-related and shareholder servicing expenses which may not exceed 0.75% of average daily net assets for Class A Shares of Money Market and Tax Exempt Money Market Funds and 0.35% for Class A Shares of the Pennsylvania Tax-Exempt Money Market and Treasury Money Market Funds. The payments for Class A Shares of the Funds are voluntarily limited to 0.30% of average daily net assets. The Money Market Fund may incur distribution-related and shareholder servicing expenses which may not exceed an annual fee of 1.00% of average daily net assets of its Class B and Class C shares and up to 0.30% of its average daily net assets of its Class K shares. During the year ended August 31, 1997, amounts paid to EKD pursuant to each Fund's Class A, Class B, Class C and Class K Distribution Plans were as follows:
AMOUNTS PAID AMOUNTS WAIVED CLASS A CLASS B CLASS C CLASS K CLASS A Money Market Fund................................... $6,232,581 $122,419 $4,266 $ 136 -- Pennsylvania Tax-Free Money Market Fund............. 90,259 -- -- -- $ 61,039 Tax Exempt Money Market Fund........................ 1,988,796 -- -- -- -- Treasury Money Market Fund.......................... 7,263,329 -- -- -- --
EKD has entered into a Shareholder Services Agreement with First Union Brokerage Services ("FUBS"), an affiliate of First Union, whereby EKD will compensate FUBS for certain services provided to shareholders and/or maintenance of shareholder accounts relating to Money Market Fund's Class B shares. EKD intends, but is not obligated, to continue to pay distribution costs that exceed the current annual payments from the Money Market Fund. EKD intends to seek full payment of such distribution costs from the Money Market Fund at such time in the future as, and to the extent that, payment thereof by the Class B, Class C or Class K shares would be within permitted limits. For the Money Market Fund's Class B, Class C and Class K shares, contingent deferred sales charges paid by redeeming shareholders are paid to EKD. 5. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS Evergreen Asset Management Corp. ("EAM"), a wholly-owned subsidiary of First Union, is the investment adviser for the Money Market and Tax Exempt Money Market Funds. In return for providing investment management and administrative services to the Funds, the Funds pay EAM a management fee that is calculated daily and paid monthly. The management fee is computed by applying percentage rates starting at 0.50% and declining to 0.45% per annum as net assets increase, to the average daily net asset value of each Fund. The Capital Management Group ("CMG") of First Union National Bank of North Carolina ("FUNB"), a subsidiary of First Union, serves as the investment adviser to the Pennsylvania Tax-Free Money Market and Treasury Money Market Funds. In return for providing investment management and administrative services to the Funds, the Funds pay CMG a management fee that is calculated daily and paid monthly. For the Pennsylvania Tax-Free Money Market Fund, the management fee is calculated by applying percentage rates starting at 0.40% and declining to 0.28% per annum as net assets increase, to the average daily net asset value of the Pennsylvania Tax-Free Money Market Fund. CMG is entitled to an annual fee of 0.35% of the average daily net asset value of the Treasury Money Market Fund. 38 EVERGREEN (Evergreen Graphic COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED) Goes Here) Evergreen Keystone Investment Services, Inc. ("EKIS"), a subsidiary of First Union, serves as the administrator for each Fund. Prior to March 11, 1997, EAM was the administrator. Furman Selz LLC ("Furman Selz") was the sub-administrator through December 31, 1996. Effective January 1, 1997, BISYS acquired Furman Selz' mutual fund unit and accordingly BISYS Fund Services became sub-administrator. The administrator and sub-administrator for the Pennsylvania Tax-Free Money Market and Treasury Money Market Funds are entitled to an annual fee based on the average daily net assets of the funds administered by EKIS for which First Union or its investment advisory subsidiaries are also the investment advisers. The administration fee is calculated by applying percentage rates, which start at 0.05% and decline to 0.01% per annum as net assets increase, to the average daily net asset value of the Pennsylvania Tax-Free Money Market and Treasury Money Market Funds. The sub-administration fee is calculated by applying percentage rates, which start at 0.01% and decline to .004% per annum as net assets increase, to the average daily net asset value of the Pennsylvania Tax-Free Money Market and Treasury Money Market Funds. During the year ended August 31, 1997, the Pennsylvania Tax-Free Money Market and Treasury Money Market Funds paid or accrued to EKIS $23,109 and $1,030,140, respectively, for certain administrative services. For the Money Market and Tax Exempt Money Market Funds the administration and sub-administration fees are paid by EAM and are not fund expenses. Lieber & Company, an affiliate of First Union, is the investment sub-adviser to the Money Market and Tax Exempt Money Market Funds. Lieber & Company is reimbursed by EAM, at no additional expense to the Money Market and Tax Exempt Money Market Funds, for its cost of providing sub-investment advisory services. During the year ended August 31, 1997, the Funds' fees were waived as follows:
MANAGEMENT FEE WAIVER Money Market Fund........................................ $1,482,584 Pennsylvania Tax-Free Money Market Fund.................. 62,049 Tax Exempt Money Market Fund............................. 183,559 Treasury Money Market Fund............................... 132,244
The investment manager can modify or discontinue these voluntary waivers at any time. Effective May 5, 1997, Evergreen Keystone Service Company ("EKSC"), a wholly-owned subsidiary of FUNB, provides transfer and dividend disbursing agent services for the Funds. These services were formerly provided by State Street Bank and Trust Company ("State Street"). As of August 31, 1997, the Funds' accrued or paid to EKSC the following amounts for these services: Money Market Fund............................................ $482,639 Pennsylvania Tax-Free Money Market Fund...................... 3,203 Tax Exempt Money Market Fund................................. 99,662 Treasury Money Market Fund................................... 71,754
For certain accounts of the Money Market and the Treasury Money Market Funds, First Union had been sub-contracted by State Street to maintain shareholder sub-account records, take fund purchase and redemption orders and answer inquiries. For each account of the Funds, First Union earned a fee which aggregated as follows for the year ended August 31, 1997: Money Market Fund........................................ $ 32,890 Treasury Money Market Fund............................... 93,455
Officers of the Funds and affiliated Trustees receive no compensation directly from the Funds. As sub-administrator, BYSIS compensates the officers of the Funds. 6. EXPENSE OFFSET ARRANGEMENT The Funds have entered into an expense offset arrangement with their custodian. The assets deposited with the custodian under this expense offset arrangement could have been invested in income-producing assets. 39 EVERGREEN (Evergreen Graphic Goes Here) COMBINED NOTES TO FINANCIAL STATEMENTS (CONTINUED) 7. DEFERRED TRUSTEES' FEES Each Independent Trustee of the Funds may defer any or all compensation related to performance of their duties as a Trustee. Each Trustee's deferred balance is allocated to deferral accounts which are included in the accrued expenses for each Fund. The investment performance of the deferral accounts is based on the investment performance of certain Evergreen Keystone Funds. Any gains earned or losses incurred in the deferral accounts are reported in the Fund's Trustees' fees and expenses. Trustees will be paid either in one lump sum or in quarterly installments for up to ten years at their election, not earlier than either the year in which the Trustee ceases to be a member of the Board of Trustees or January 1, 2000. As of August 31, 1997, the value of the Trustees' deferral accounts was as follows: Money Market Fund........................................ $ 45,487 Pennsylvania Tax-Free Money Market Fund.................. 5,102 Tax Exempt Money Market Fund............................. 18,639 Treasury Money Market Fund............................... 111,635
8. ACQUISITION INFORMATION Effective August 1, 1997, the Money Market Fund acquired substantially all the assets and assumed the liabilities of Keystone Liquid Trust in exchange for Class A, Class B and Class C shares of the Money Market Fund. The acquisition was accomplished by a tax-free exchange of the respective shares of the Money Market Fund for the net assets of Keystone Liquid Trust. The net assets acquired, valued at $1 per share, amounted to $163,579,564. The aggregate net assets of the Money Market Fund immediately after the acquisition was $3,202,817,920. Effective January 1, 1996, First Union merged with First Fidelity Bancorporation. Effective on the close of business January 19, 1996, the Funds noted below acquired substantially all of the net assets of the following management investment companies, previously advised by a subsidiary of First Fidelity Bancorporation, through non-taxable exchanges. The net assets acquired, valued at $1 per share, and class of shares exchanged are as follows:
CLASS OF ACQUIRED FUND ACQUIRING FUND SHARES EXCHANGED NET ASSETS FFB Cash Management Fund Money Market Fund Class A $ 592,358,361 FFB Lexicon Cash Management Fund Money Market Fund Class Y 95,834,929 FFB Tax-Free Money Market Fund Tax Exempt Money Class A 103,129,021 Market Fund FFB U.S. Treasury Fund Treasury Money Class A 1,070,672,333 Market Fund FFB U.S. Government Fund Treasury Money Class A 327,532,054 Market Fund FFB 100% U.S. Treasury Fund Treasury Money Class A 28,227,573 Market Fund
The aggregate net assets of the Money Market, Tax Exempt Money Market and Treasury Money Market Funds immediately after the acquisitions were $1,865,328,722, $1,141,961,188 and $3,053,739,559, respectively. 9. FINANCING AGREEMENT On October 31, 1996, a financing agreement between all of the Evergreen Funds and State Street, Societe Generale and ABN Amro Bank N.V. (collectively, the "Banks") became effective. Under this agreement, the Banks provide an unsecured credit facility in the aggregate amount of $225 million ($112.5 million committed and $112.5 million uncommitted) allocated evenly between the Banks. Borrowings under this facility bear interest at 0.75% per annum above the Federal Funds rate. A commitment fee of 0.10% per annum will be incurred on the unused portion of the committed facility which will be allocated to all participating funds. State Street acts as agent for the Banks, and as agent is entitled to a fee of $15,000 which is allocated to all of the Evergreen Funds. During the year ended August 31, 1997, the Tax Exempt Money Market Fund had borrowings outstanding for 3 days under the line of credit and incurred $28,513 in interest charges related to these borrowings. The Tax Exempt Money Market Fund's average amount of debt outstanding during the year ended August 31, 1997 aggregated $47,400,000 at a weighted average interest rate of 7.218%. The maximum amount outstanding under the line of credit during the year ended August 31, 1997 was $67,212,367 (including accrued interest). The Funds had no outstanding borrowings under this agreement at August 31, 1997. 10. CONCENTRATION OF CREDIT RISK The Pennsylvania Tax-Free Money Market Fund invests a substantial portion of its assets in issuers located in a single state, therefore, it may be more affected by economic and political developments in that state or region than would be a comparable general tax-exempt money market fund. 40 EVERGREEN (Evergreen Graphic REPORT OF INDEPENDENT ACCOUNTANTS Goes Here) TO THE TRUSTEES AND SHAREHOLDERS OF EVERGREEN MONEY MARKET FUND AND EVERGREEN TAX EXEMPT MONEY MARKET FUND In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Evergreen Money Market Fund, (the "Fund"), a series of the Evergreen Money Market Trust, at August 31, 1997, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated and the financial position of the Evergreen Tax Exempt Money Market Fund (the "Fund"), one of the Evergreen Municipal Trust Portfolios, at August 31, 1997, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 1997 by correspondence with the custodian and the application of alternative auditing procedures where securities purchased were not received, provide a reasonable basis for the opinion expressed above. Price Waterhouse LLP 1177 Avenue of the Americas New York, New York October 14, 1997 41 EVERGREEN (Evergreen Graphic Goes Here) INDEPENDENT AUDITORS' REPORT The Trustees and Shareholders Evergreen Tax-Free Trust Evergreen Investment Trust We have audited the accompanying statements of assets and liabilities, including the schedules of investments of the Evergreen Money Market Funds listed below as of August 31, 1997, and the related statements of operations, statements of changes in net assets, and financial highlights for each of the years or periods listed below: EVERGREEN PENNSYLVANIA TAX-FREE MONEY MARKET FUND (ONE OF THE PORTFOLIOS CONSTITUTING EVERGREEN TAX-FREE TRUST)-- statement of operations for the year ended August 31, 1997, statements of changes in nets assets for the year ended August 31, 1997, the six-months ended August 31, 1996 and the year ended February 29, 1996, and financial highlights for the periods presented on page 9. EVERGREEN TREASURY MONEY MARKET FUND (ONE OF THE PORTFOLIOS CONSTITUTING EVERGREEN INVESTMENT TRUST)-- statement of operations for the year ended August 31, 1997, statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for the periods presented on page 11. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. These standards require that we plan and perform our audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 1997 by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Evergreen Pennsylvania Tax-Free Money Market Fund and Evergreen Treasury Money Market Fund as of August 31, 1997, the results of their operations for the year then ended, and the changes in their net assets and financial highlights for each of the years or periods specified in the first paragraph above in conformity with generally accepted accounting principles. KPMG Peat Marwick LLP Boston, Massachusetts October 10, 1997 42 EVERGREEN (Evergreen Graphic Goes Here) FEDERAL INCOME TAX STATUS OF DIVIDENDS (UNAUDITED) 100% of the dividends distributed by the Pennsylvania Tax-Exempt Money Market Fund and the Tax-Exempt Money Market Fund for the year ended August 31, 1997 are exempt from federal income tax, other than alternative minimum tax. 43 This brochure 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. NOT May lose value FDIC INSURED No bank guarantee Evergreen Funds Distributor, Inc. 62545 540710 Rev. 01 10/97 -----END PRIVACY-ENHANCED MESSAGE-----