-----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, QJMv0Et2eHVvsTR7Fs5q7pS0iIBYkCku15lfHIm9NFafLGUdx34chAFtM8hEQGx8 sDI+qBuRmtF63EtHEREOsQ== 0000950109-99-004473.txt : 19991213 0000950109-99-004473.hdr.sgml : 19991213 ACCESSION NUMBER: 0000950109-99-004473 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991031 FILED AS OF DATE: 19991210 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MENTOR FUNDS CENTRAL INDEX KEY: 0000883428 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 251679376 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06550 FILM NUMBER: 99772945 BUSINESS ADDRESS: STREET 1: RIVERFRONT PLAZA STREET 2: WEST TOWER 901 E BYRD STREET CITY: RICHMOND STATE: VA ZIP: 23219 BUSINESS PHONE: 8047823648 MAIL ADDRESS: STREET 1: RIVERFRONT PLAZA STREET 2: WEST TOWER 901 E BYRD STREET CITY: RICHMOND STATE: VA ZIP: 23219 FORMER COMPANY: FORMER CONFORMED NAME: CAMBRIDGE SERIES TRUST DATE OF NAME CHANGE: 19920717 N-30D 1 PERPETUAL GLOBAL FUNDS Annual Report as of October 31, 1999 and September 30, 1999 Evergreen Perpetual Global Fund [LOGO OF EVERGREEN FUNDS] Table of Contents Letter to Shareholders .................................... 1 Evergreen Perpetual Global Fund (formerly Mentor Perpetual Global Portfolio) Fund at a Glance ........................................ 2 Portfolio Manager Interview ............................. 3 Financial Highlights ...................................... 6 Schedule of Investments October 31, 1999 ........................................ 8 September 30, 1999 ...................................... 14 Statements of Assets and Liabilities ...................... 20 Statements of Operations .................................. 21 Statements of Changes in Net Assets ....................... 22 Notes to Financial Statements ............................. 23 Independent Auditors' Report .............................. 29 Additional Information (unaudited) ........................ 30 Evergreen Funds Evergreen Funds is one of the nation's fastest growing investment companies with over $70 billion in assets under management. With over 80 mutual funds to choose among and acclaimed service and operations capabilities, investors enjoy a broad range of quality investment products and services designed to meet their needs. The Evergreen Funds employ intensive, research-driven investment strategies executed by over 90 research analysts and portfolio managers. The fund company remains dedicated to meeting the needs of investors and their advisors in a global economy. Look to the Evergreen Funds to provide a distinctive level of service and excellence in investment management. This annual report must be preceded or accompanied by a prospectus of an Evergreen fund contained herein. The prospectus contains more complete information, including fees, charges and other ongoing expenses, and should be read carefully before investing or sending money. --------------------------------------------------------------- Mutual Funds: NOT FDIC INSURED May lose value . Not bank guaranteed --------------------------------------------------------------- Evergreen Distributor,Inc. Evergreen(SM) is a Service Mark of Evergreen Investment Services, Inc. Letter to Shareholders ---------------------- December 1999 [PHOTO] William M. Ennis President and CEO Dear Evergreen Shareholders, We are pleased to provide the Evergreen Perpetual Global Fund annual report, which covers the one-month period ended October 31, 1999 and the twelve-month period ended September 30, 1999. Uncertainty over Interest Rates Influences the Markets Although the U.S. economy is in the ninth year of economic expansion, many believe that valuation levels in some sectors of the stock market are just not sustainable. The S&P 500 continued to advance in the first half of 1999, dominated by the performance of a very small group of large-cap stocks. By the 3rd quarter of 1999, rising interest rates dampened performance of stocks across the board. Investors' inflation fears and continued doubts about the ability of U.S. companies to sustain significant growth in earnings prompted an October sell-off. The Federal Reserve Bank's "tightening bias" leads many to anticipate further interest rate increases in order to stem even the slightest inflationary pressure. Additional interest rate hikes would likely have a negative effect on stock prices, which could restrain consumer spending; however, many investors are waiting for just such a scenario to take place, so they can take advantage of lower stock prices as a buying opportunity. Bonds appear relatively attractive over the long term compared to other asset classes, particularly because "real" interest rates are high by historical standards. We believe that the economy is still fundamentally strong, and that inflation will stay contained, producing only moderate upward pressure on interest rates. We remain cautiously optimistic about the prospects for continued growth in the markets. Internationally, our outlook is dominated by Japan where we expect further monetary easing to help the still fragile recovery there. As that economy improves, it should result in greater demand for goods and services produced in other Asian markets. Evergreen Funds is Ready for the Year 2000/1/ We have been addressing the Year 2000 challenge since February of 1996 and have committed the time, resources and people necessary to prepare for any ramifications from the millennium bug. Today, we are confident that our preparations will enable us to continue to deliver the high-quality Evergreen products and services on which our shareholders rely. In addition, Evergreen portfolio managers have placed great emphasis on monitoring portfolios for Y2K readiness. We believe that sound investing is about taking steps to meet your long-term financial needs and goals. We remind you to take advantage of your financial advisor's expertise to develop and refine a financial plan that will enable you to meet your objectives. Evergreen Funds offers a broad mix of stock, bond and money market funds that should make it simple for you to choose the most appropriate for your portfolio. We would like to thank you for your continued investment in Evergreen Funds. Sincerely, /s/ William M. Ennis William M. Ennis President and CEO Evergreen Investment Company, Inc. /1/The information above constitutes Year 2000 readiness disclosure. 1 EVERGREEN Perpetual Global Fund (formerly Mentor Perpetual Global Portfolio) Fund at a Glance as of October 31, 1999 Portfolio Management Team ------------------------------------------ Ian Brady Kathryn Langridge Tenure:April 1995 Tenure:April 1995 Scott McGlashan Margaret Rodden Tenure:April 1995 Tenure:April 1995 Stephen Whittaker Tenure:April 1995 PERFORMANCE AND RETURNS/2/ Portfolio Inception Date:3/29/1994 Class A Class B Class C Class Y Class Inception Date 3/29/1994 10/18/1999 3/29/1994 11/19/1997 Average Annual Returns* 1 year with sales charge 19.00% 19.97% 23.10% n/a 1 year w/o sales charge 24.92% 24.97% 24.10% 25.34% 3 years 15.20% 16.37% 16.29% 17.29% 5 years 14.39% 15.29% 14.68% 15.62% Since Portfolio Inception 13.16% 14.06% 13.28% 14.26% Maximum Sales Charge 4.75% 5.00% 1.00% Front End CDSC CDSC n/a * Adjusted for maximum applicable sales charge unless noted. LONG TERM GROWTH [CHART] MSCI Month ending date Mentor Pre. Global A Closing value CPI 03/30/94 9,525 10,000 10,000 10/30/94 9,204 10,382 10,156 10/30/95 10,914 11,422 10,442 10/30/96 13,072 13,344 10,754 10/30/97 14,352 15,647 10,978 10/30/98 16,644 18,101 11,141 10/31/99 19,983 22,685 11,461 Comparison of change in value of a $10,000 investment in Evergreen Perpetual Global Fund Class A shares, versus a similar investment in the Morgan Stanley Capital International World Index (MSCI World) and The Consumer Price Index (CPI). The MSCI World is an unmanaged index which does not include transaction costs associated with buying and selling securities or any management fees. The CPI is a commonly used measure of inflation and does not represent an investment return. It is not possible to invest directly in an index. Foreign investments may contain more risk due to the inherent risks associated with changing political climates, foreign market instability and foreign currency fluctuations. CURRENT INVESTMENT STYLE/1/ [GRAPHIC] Morningstar's Style Box is based on a portfolio date as of 10/31/1999. The Equity Style Box placement is based on a fund's price-to-earnings and price-to-book ratio relative to the S&P 500, as well as the size of the companies in which it invests, or median market capitalization. /1/ Source: 1999 Morningstar, Inc. /2/ Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. The performance of each class may vary based on differences in loads, fees and expenses paid by the shareholders investing in each class. Historical performance shown for Class B and Class Y prior to their inception is based on the performance of Class A, one of the original classes offered along with Class C. These historical returns for Class B and Class Y have not been adjusted to reflect the effect of each class' 12b-1 fees. These fees for Class A are 0.25%, for Class B are 1.00% and for Class C are 1.00%. Class Y does not pay a 12b-1 fee. If these fees had been reflected, returns for Class B would have been lower while returns for Class Y would have been higher. 2 EVERGREEN Perpetual Global Fund Portfolio Manager Interview How did the Fund perform? An asset allocation approach, based on moving assets out of European and U.S. markets and into Japan and other Asian markets, led to excellent Fund performance during the twelve months. For the twelve-month period ended October 31, 1999, the Fund's A shares returned 24.92%, before the deduction of any applicable sales charges. The Fund's benchmark, the MSCI World Index, returned 24.91% for the same period. Portfolio Characteristics --------------- (as of 10/31/1999 unless noted) Total Net Assets $220,465,971 Number of Holdings 386 Beta 0.81* *as of 9/30/1999 What were the principal strategies that supported the Fund's performance? Early in the period, we began increasing the Fund's commitment to Asia. As a result, by the end of the twelve months, assets in Japan accounted for 15% of the portfolio up from 10% at the beginning of the period. While Japanese investments did not account for the largest portion of the Fund, they were the most important contributors to performance. Why? Japan had been in recession for nine years, and from our perspective in the last quarter of 1998, two conditions prevailed. First, investor sentiment was so negative that stocks were extremely cheap; and second, fiscal, monetary and business reforms were being put in place to address Japan's economic problems. These included changes in banking and interest rate policy, large public works expenditures, an infusion of capital investment into the banks, and an unprecedented level of corporate restructuring. There was also a large amount of merger and acquisition activity. A recent high profile example of such activity was the merger of Fuji Bank, DaiChi-Kangyo Bank and Industrial Bank of Japan, which created the largest banking corporation in the world. Fund assets in other parts of Asia increased from 4% to 9%. What was attractive about the region? For more than a year, Asia has been in turmoil. High levels of corporate and government debt, weak currencies, high interest rates and political instability had eroded investor confidence in the region. As a result, Asian stock markets declined precipitously. In the fourth quarter of 1998, the economic outlook for Asia began to brighten. Central banks began injecting huge amounts of liquidity into the economy by systematically lowering interest rates. Lower interest rates led to business expansion and corporate restructuring. During this time, Asian stocks were selling at extremely low prices, and we began selectively adding them to the Fund's portfolio. We concentrated investments in Hong Kong and Singapore, where we invested primarily in financial stocks. Most recently, consumer demand for goods and services has picked up in Asia. We believe this should lead to significant earnings recovery in the months ahead. Top 5 Industries ---------------- (as a percentage of net assets) Banking 10.3% Telecommunications 8.9% Financial Services 7.0% Health & Personal Care 7.0% Electrical & Electronics 6.9% 3 EVERGREEN Perpetual Global Fund Portfolio Manager Interview What was your strategy in the U.S.? We reduced exposure to U.S. stocks from 35% to 34% of net assets and deployed assets in other world markets. While the Fund's allocation to U.S. stocks continued to be the largest country weighting in the portfolio, it is relatively small when compared to the 52% weighting of U.S. stocks in the MSCI World index, the Fund's benchmark. The Fund's relatively small position in U.S. stocks reflects our perspective that there is better value outside the U.S. In January 1999, we began to emphasize industrial cyclical recovery stocks, such as raw materials and oils, which performed well. More recently we established a position in technology stocks, however, the technology stocks in the portfolio do not include internet stocks, whose value we believe to be excessive. Even though the U.S. market as a whole seems overvalued to us, we believe that certain sectors and individual stocks still offer attractive value. How did the European stocks in the portfolio perform? Slower economic growth and overstated benefits of the euro, Europe's single currency, restrained European markets over the past year and, in general, stocks in this region produced lackluster performance. Several months ago, we began seeing signs of a cyclical recovery in European economies, and we have positioned the portfolio to take advantage of this situation. As a result, we emphasized industrial cyclicals, such as oil, steel, paper and pulp, chemicals and engineering stocks. While we reduced the Fund's exposure to Europe from 38% to 30% of net assets, we continue to find opportunities in individual stocks, as recovery from recession begins. France is the Fund's biggest country weighting in this region, followed by Germany and Netherlands. At 10% of net assets, exposure to the United Kingdom (UK) remained constant. In 1998, the Fund suffered from our reluctance to hold on to what, we believed, were overvalued telecommunications and pharmaceutical stocks. In 1999, however, there has been a rotation in the UK market away from those mega-cap stocks to small and mid-cap stocks, like the ones we hold in the portfolio. In the UK, we favored investments in banks, aerospace, and consumer cyclicals. Top 10 Holdings* ---------------- (as a percentage of net assets) Funai Electric Co., Ltd. 1.8% Sumimoto Trust & Banking Co., Ltd. 1.7% Total Fina SA Cl. B 1.6% BankAmerica Corp. 1.4% Furukawa Electric Co. Ltd. 1.3% Asahi Glass Co. Ltd. 1.3% Bank of Tokyo-Mitsubishi Ltd. 1.3% Kokusai Securities Co. Ltd. 1.3% Nokia AB Oyj 1.2% Merck & Co., Inc. 1.2% *Portfolio composition subject to change Did you make any changes in the Latin American portion of the portfolio? Exposure to Latin America remained constant at 1% of net assets, invested in Mexico and Brazil. While some Latin American markets rose during the period, they continued to be plagued by currency weakness. We expect currency problems to persist for some time in this region. 4 EVERGREEN Perpetual Global Fund Portfolio Manager Interview What is your outlook? Our outlook is dominated by our perspective on Japan. We expect there will be further monetary easing in Japan that will be accompanied by weakness in the yen. We view this as a positive situation, because the stronger yen would threaten to stifle the still fragile economic recovery. In looking at the big picture, we believe the single most important influence on the performance of international markets relative to the U.S. over the next year will be further recovery in Japan. Japan's economic turnaround should result in greater demand for goods and services produced in other Asian markets. This will diminish Asia's reliance on the U.S. as a market for its goods and services. 5 EVERGREEN Financial Highlights Perpetual Global Fund (formerly Mentor Perpetual Global Portfolio) (For a share outstanding throughout each period)
Year Ended September 30, One-Month Period Ended -------------------------------------------- October 31, 1999 (a)(b) 1999 # 1998 1997 1996 1995 CLASS A SHARES Net asset value, beginning of period $ 23.09 $ 18.92 $ 20.94 $ 17.86 $ 15.88 $14.23 ------- ------- ------- ------- ------- ------ ......................................................................... Income from investment operations ......................................................................... Net investment income (loss) (0.03) 0.02 (0.03) 0.04 (0.04) 0.05 ......................................................................... Net realized and unrealized gains or losses on securities and foreign currency related transactions 0.80 5.74 (0.97) 3.67 2.82 1.60 ------- ------- ------- ------- ------- ------ Total from investment operations 0.77 5.76 (1.00) 3.71 2.78 1.65 ------- ------- ------- ------- ------- ------ ......................................................................... Distributions to shareholders from Net realized gains 0 (1.59) (1.02) (0.63) (0.80) 0 ------- ------- ------- ------- ------- ------ Total distributions to shareholders 0 (1.59) (1.02) (0.63) (0.80) 0 ------- ------- ------- ------- ------- ------ ......................................................................... Net asset value, end of period $ 23.86 $ 23.09 $ 18.92 $ 20.94 $ 17.86 $15.88 ------- ------- ------- ------- ------- ------ ......................................................................... Total return* 3.33% 32.49% (4.97%) 21.59% 18.40% 11.60% ......................................................................... Ratios and supplemental data ......................................................................... Net assets, end of period (thousands) $86,341 $88,743 $59,012 $46,556 $13,098 $6,854 ......................................................................... Ratios to average net assets ......................................................................... Expenses** 2.16%+ 1.84% 1.75% 1.89% 1.95% 2.06% ......................................................................... Net investment income (1.49%)+ 0.11% (0.01%) 0.07% (0.21%) 0.26% ......................................................................... Portfolio turnover rate 13% 144% 162% 128% 130% 155% .........................................................................
Period Ended October 31, 1999 (c) CLASS B SHARES Net asset value, beginning of period $22.91 ------ ......................................................................... Income from investment operations ......................................................................... Net investment loss 0 ......................................................................... Net realized and unrealized gains or losses on securities and foreign currency related transactions 0.96 ------ ......................................................................... Total from investment operations 0.96 ------ ......................................................................... Net asset value, end of period $23.87 ------ ......................................................................... Total return* 4.19% ......................................................................... Ratios and supplemental data ......................................................................... Net assets, end of period (thousands) $1,048 ......................................................................... Ratios to average net assets ......................................................................... Expenses** 2.91%+ ......................................................................... Net investment income (2.24%)+ ......................................................................... Portfolio turnover rate 13% .........................................................................
(a) For the one month ended October 31, 1999. The Fund changed its fiscal year end from September 30 to October 31, effective October 31, 1999. (b) Effective October 18, 1999, shareholders of Mentor Perpetual Global Portfo- lio Class A, Class B and Class Y shares became owners of that number of full and fractional shares of Class A, Class C and Class Y shares, respec- tively, of Evergreen Perpetual Global Fund. Class B shares of Mentor Per- petual Global Portfolio were redesignated as Class C shares of Evergreen Perpetual Global Fund. (c) For the period from October 18, 1999 (commencement of class operations) to October 31, 1999. * Excluding applicable sales charges. ** Ratio of expenses to average net assets includes fee waivers and excludes fee credits. + Annualized. # Net investment income or loss per share is based on average shares outstand- ing during the period. See Notes to Financial Statements. 6 EVERGREEN Financial Highlights Perpetual Global Fund (formerly Mentor Perpetual Global Portfolio) (For a share outstanding throughout each period)
Year Ended September 30, One-Month Period Ended ------------------------------------------------ October 31, 1999 (a)(b) 1999 # 1998 1997 1996 1995 CLASS C SHARES Net asset value, beginning of period $ 21.99 $ 18.21 $ 20.32 $ 17.46 $ 15.67 $ 14.15 -------- -------- ------- ------- ------- ------- ......................................................................... Income from investment operations ......................................................................... Net investment loss (0.03) (0.21) (0.12) (0.02) (0.05) (0.05) ......................................................................... Net realized and unrealized gains or losses on securities and foreign currency related transactions 0.75 5.58 (0.97) 3.51 2.64 1.57 -------- -------- ------- ------- ------- ------- ......................................................................... Total from investment operations 0.72 5.37 (1.09) 3.49 2.59 1.52 -------- -------- ------- ------- ------- ------- ......................................................................... Distributions to shareholders from ......................................................................... Net realized gains 0 (1.59) (1.02) (0.63) (0.80) 0 -------- -------- ------- ------- ------- ------- ......................................................................... Total distributions to shareholders 0 (1.59) (1.02) (0.63) (0.80) 0 -------- -------- ------- ------- ------- ------- ......................................................................... Net asset value, end of period $ 22.71 $ 21.99 $ 18.21 $ 20.32 $ 17.46 $ 15.67 -------- -------- ------- ------- ------- ------- ......................................................................... Total return* 3.27% 31.54% (5.65%) 20.74% 17.39% 10.74% ......................................................................... Ratios and supplemental data ......................................................................... Net assets, end of period (thousands) $133,075 $128,192 $99,277 $89,030 $42,131 $12,667 ......................................................................... Ratios to average net assets ......................................................................... Expenses** 2.91%+ 2.58% 2.50% 2.64% 2.70% 2.72% ......................................................................... Net investment income (2.24%)+ (0.67%) (0.77%) (0.68%) (0.91%) (0.40%) ......................................................................... Portfolio turnover rate 13% 144% 162% 128% 130% 155% .........................................................................
Year Ended September 30, One-Month Period Ended ---------------- October 31, 1999 (a)(b) 1999 # 1998 (c) CLASS Y SHARES Net asset value, beginning of period $23.21 $18.96 $18.81 ------ ------ ------ ......................................................................... Income from investment operations ......................................................................... Net investment income (0.02) 0.09 0 ......................................................................... Net realized and unrealized gains or losses on securities and foreign currency related transactions 0.80 5.75 0.30 ------ ------ ------ ......................................................................... Total from investment operations 0.78 5.84 0.30 ------ ------ ------ ......................................................................... Distributions to shareholders from ......................................................................... Net realized gains 0 (1.59) (0.15) ------ ------ ------ ......................................................................... Total distributions to shareholders 0 (1.59) (0.15) ------ ------ ------ ......................................................................... Net asset value, end of period $23.99 $23.21 $18.96 ------ ------ ------ ......................................................................... Total return 3.36% 32.87% 1.60% ......................................................................... Ratios and supplemental data ......................................................................... Net assets, end of period (thousands) $ 1 $ 1 $ 1 ......................................................................... Ratios to average net assets ......................................................................... Expenses** 1.83%+ 1.52% 1.50%+ ......................................................................... Net investment income (0.87%)+ 0.40% (0.02%)+ ......................................................................... Portfolio turnover rate 13% 144% 162% .........................................................................
(a) For the one month ended October 31, 1999. The Fund changed its fiscal year end from September 30 to October 31, effective October 31, 1999. (b) Effective October 18, 1999, shareholders of Mentor Perpetual Global Portfo- lio Class A, Class B and Class Y shares became owners of that number of full and fractional shares of Class A, Class C and Class Y shares, respec- tively, of Evergreen Perpetual Global Fund. Class B shares of Mentor Per- petual Global Portfolio were redesignated as Class C shares of Evergreen Perpetual Global Fund. (c) For the period from November 19, 1997 (commencement of class operations) to September 30, 1998. * Excluding applicable sales charges. ** Ratio of expenses to average net assets includes fee waivers and excludes fee credits. + Annualized. # Net investment income or loss per share is based on average shares outstand- ing during the period. See Notes to Financial Statements. 7 EVERGREEN Perpetual Global Fund Schedule of Investments October 31, 1999
Shares Value COMMON STOCKS - 99.9% Argentina - 0.1% 1,600 Inversiones y Representaciones, SA GDR.............. $ 48,300 11,120 Perez Companc SA, Cl. B............................. 66,973 1,600 Telecom Argentina--France Telecom, SA Cl. B, ADR (b)................................................ 44,000 ------------ 159,273 ------------ Austria - 0.3% 12,560 Bank Austria AG..................................... 625,979 ------------ Belgium - 0.3% 20,562 Fortis (B).......................................... 695,913 ------------ Brazil - 0.3% 9,000,000 Banco Bradesco SA................................... 44,066 3,400,000 Companhia Brasileira de Distribuicao Grupo Pao de Acucar............................................. 73,212 3,400 Companhia Energetica de Minas Gerais, ADR........... 48,595 3,500,000 Companhia Siderurgica de Tubarao.................... 29,787 3,650 Companhia Vale do Rio Doce, ADR (b)................. 71,185 1,500,000 Eletropaulo Metropolitana-Electricidade de Sao Paulo SA................................................. 68,444 2,800 * Embratel Participacoes SA, ADR (b)................ 36,050 2,700,000 Gerdau SA........................................... 48,864 90,800 Industrias Klabin de Papel e Celulose SA............ 47,949 710,000 Petroleo Brasileiro SA.............................. 113,025 4,200 Tele Norte Leste Participacoes SA, ADR (b).......... 70,875 2,600 Telesp Celular Participacoes SA (b)................. 64,025 2,500 Uniao de Bancos Brasileiros SA, GDR................. 57,812 ------------ 773,889 ------------ Canada - 0.8% 30,300 Barrick Gold Corp................................... 554,869 27,500 * Canadian Natural Resources Ltd.................... 605,546 42,700 Placer Dome, Inc.................................... 517,737 ------------ 1,678,152 ------------ Channel Islands - 0.0% 5,300 Telesp Participacpoes SA ADR (b).................... 85,794 ------------ Chile - 0.1% 4,300 Banco De A Edward................................... 62,888 2,350 Chilectra SA, ADR................................... 41,789 3,600 Embotelladora Andina SA, Ser. A (b)................. 58,500 4,000 Empresa Nacional de Electric, ADR (b)............... 51,000 ------------ 214,177 ------------ Croatia - 0.1% 24,000 Zagrebacka Banka Ulc Reg S, GDR..................... 213,600 ------------ Denmark - 0.5% 8,892 Novo Nordisk AS, Ser. B............................. 1,069,434 ------------
Shares Value COMMON STOCKS - continued Finland - 3.3% 18,000 Hansabank........................................... $ 90,526 15,332 Huhtamaki Group..................................... 484,959 27,150 Konecranes Finance Oyj.............................. 701,327 28,770 Metra AB Oyj (b).................................... 546,005 23,808 Nokia AB Oyj........................................ 2,731,344 99,362 Stora Enso Oyj...................................... 1,309,529 45,320 UPM-Kymmene Oyj..................................... 1,433,494 ------------ 7,297,184 ------------ France - 6.9% 11,214 Atos SA............................................. 1,440,100 11,819 Carbone Lorraine SA (b)............................. 509,794 7,770 Coflexip SA (b)..................................... 614,422 6,995 Compagnie de Saint Gobain........................... 1,216,904 12,072 Entrelec Groupe SA.................................. 585,493 23,670 Eramet SLN.......................................... 1,207,893 8,010 Imerys SA........................................... 1,148,566 840 Isis................................................ 56,416 18,742 Pechiney SA......................................... 1,051,265 9,566 Schneider SA........................................ 660,627 25,620 Total Fina SA, Cl. B................................ 3,471,098 98,160 Usinor SA........................................... 1,367,168 23,777 Vivendi (b)......................................... 1,806,241 ------------ 15,135,987 ------------ Germany - 7.3% 1,860 * AVA Allg Handels der Verbraucher AG............... 856,996 37,540 BASF AG............................................. 1,692,057 328,000 Deutsche Bank AG.................................... 333,626 27,806 Dresdner Bank AG.................................... 1,433,613 97,250 Elexis AG........................................... 594,706 35,306 ELMOS Semiconductor AG.............................. 893,397 24,500 Epcos AG............................................ 1,006,914 35,760 * Global TeleSystems Group, Inc. (b)................ 856,005 8,729 Henkel KGaA......................................... 593,620 84,950 Lufthansa AG........................................ 1,791,340 7,104 Mannesmann AG....................................... 1,119,770 20,700 SGL Carbon AG....................................... 1,328,054 19,142 Siemens AG.......................................... 1,722,565 33,490 Veba AG............................................. 1,814,943 ------------ 16,037,606 ------------ Greece - 0.1% 2,380 Chipita International Plc........................... 79,017 6,231 Hellenic Telecommunications Organization SA (OTE), GDR................................................ 132,341 80 Intralot SA......................................... 2,044 5,200 Hellas Telecommunications SA........................ 111,800 ------------ 325,202 ------------ Hong Kong - 3.3% 608,000 Aeon Credit Service Co. Ltd......................... 250,431 360,000 Amoy Properties Ltd. (b)............................ 310,465
8 EVERGREEN Perpetual Global Fund Schedule of Investments (continued) October 31, 1999
Shares Value COMMON STOCKS - continued Hong Kong - continued 320,000 Axa China Region Ltd................................. $ 275,969 110,000 Brilliance China Automotive Holdings Ltd. ........... 391,875 169,420 Cable & Wireless Hong Kong Ltd....................... 387,077 749,000 Cafe De Coral Holdings............................... 315,739 40,000 Cheung Kong Holdings Ltd............................. 364,268 331,000 China Telecom (Hong Kong) Ltd. (b)................... 1,131,169 70,553 Dah Sing Financial Group............................. 283,338 175,000 First Pacific Company Ltd. .......................... 101,364 640,000 HKR International Ltd................................ 486,034 105,000 Hutchison Whampoa Ltd................................ 1,054,190 50,000 Jardine Strategic Holdings Ltd....................... 110,500 80,000 Johnson Electric Holdings Ltd........................ 432,488 1,550,000 Oriental Press Group................................. 207,491 420,000 Pacific Century...................................... 318,960 200,000 Shui On Construction & Materials Ltd................. 278,028 25,000 Sun Hung Kai Properties Ltd.......................... 202,729 70,000 Wing Hang Bank Ltd. ................................. 228,408 680,000 Yanzhou Coal Mining Co. Ltd.......................... 225,383 ------------ 7,355,906 ------------ Hungary - 0.1% 4,390 EGIS Gyogyszergyar RT................................ 130,875 8,890 Pannonplast RT....................................... 144,395 ------------ 275,270 ------------ India - 0.5% 8,000 BSES Ltd............................................. 94,000 5,000 Hindalco Industries Ltd., GDR, 144A ................. 103,750 7,500 Larsen & Toubro Ltd., GDR............................ 159,750 7,500 Larsen & Toubro Ltd., GDS............................ 159,750 17,000 Mahanagar Telep Ni, GDR.............................. 136,000 40,000 Mahindra & Mahindra Ltd.............................. 304,000 1,500 Tata Electric Companies, GDR......................... 247,500 ------------ 1,204,750 ------------ Indonesia - 0.9% 4,800,000 Dankos Labs.......................................... 596,491 1,015,000 PT Astra International Tbk........................... 500,822 1,436,000 PT Bank Nisp Tbk..................................... 251,930 36,000 PT Bat Indonesia Tbk................................. 115,790 150,000 PT HM Sampoerna...................................... 348,684 234,000 PT Indofood Sukses Makmur Tbk........................ 277,105 ------------ 2,090,822 ------------ Ireland - 0.3% 67,060 Irish Life & Permanent Plc........................... 677,975 ------------ Israel - 0.1% 11,503 Elbit Systems Ltd.................................... 163,965 ------------ Italy - 0.6% 55,840 Grupo Editoriale L'Espresso.......................... 1,215,766 ------------
Shares Value COMMON STOCKS - continued Japan - 15.0% 70,000 Aoyama Trading Co.................................... $ 2,237,581 360,000 Asahi Glass Co. Ltd.................................. 2,864,795 170,000 Bank Of Tokyo-Mitsubishi Ltd......................... 2,819,870 200,000 Chugai Pharmaceutical Co. Ltd. (b)................... 2,380,609 9,000 Funai Electric Co. Ltd............................... 4,077,754 400,000 Furukawa Electric Co. Ltd............................ 2,918,166 160,000 Kokusai Securities Co. Ltd. (b)...................... 2,763,043 320,000 Nippon Express Co. Ltd............................... 2,266,955 300,000 Oji Paper Co. Ltd.................................... 2,116,631 140,000 Ricoh Co. Ltd. (b)................................... 2,285,961 59,000 Shin Etsu Chemical Co. Ltd........................... 2,435,325 375,000 Sumitomo Trust & Banking Co. Ltd..................... 3,837,293 ------------ 33,003,983 ------------ Korea - 0.5% 2 Citc Seoul Access Trust.............................. 14,750 5,000 Korea Telecom Corp................................... 176,250 17,000 Pohang Iron & Steel Ltd. ADR (b)..................... 567,375 1,154 Samsung Electronics Ltd., GDR, 144A.................. 97,513 3,575 * Samsung Electronics Ltd., GDS, 144A................ 209,137 ------------ 1,065,025 ------------ Malaysia - 0.5% 84,000 Boustead Holdings Berhad............................. 66,316 60,000 Nanyang Press Holdings............................... 74,526 80,000 Resorts World Berhad................................. 229,474 50,000 Tanjong Plc.......................................... 105,263 100,000 Telekom Malaysia Berhad.............................. 307,895 54,000 UMW Holdings Berhad.................................. 95,921 100,000 * United Engineers Ltd. Berhad....................... 169,737 ------------ 1,049,132 ------------ Mexico - 0.5% 30,300 ALFA SA de CV, Ser. A................................ 116,042 10,500 Carso Global Telecom................................. 69,746 3,360 Cemex SA de CV....................................... 75,600 54,500 Cifra SA de CV, Ser. V............................... 85,526 7,400 Grupo Carso SA de CV, ADR (b)........................ 61,765 32,900 Grupo Financiero Banamex AC, Ser. O.................. 82,122 32,600 Grupo Modelo SA de CV, Ser. C........................ 79,512 2,060 * Grupo Televisa SA, ADR............................. 87,550 3,590 Telefonos de Mexico SA, ADR (b)...................... 306,945 4,600 Tubos de Acero de Mexico SA.......................... 49,414 ------------ 1,014,222 ------------ Netherlands - 3.2% 33,060 Akzo Nobel NV (b).................................... 1,427,037 21,363 DSM NV............................................... 810,867 22,390 IHC Caland NV........................................ 973,784 37,420 Indigo NV (b)........................................ 102,905 16,956 Philips Electronics NV............................... 1,743,061
9 EVERGREEN Perpetual Global Fund Schedule of Investments (continued) October 31, 1999
Shares Value COMMON STOCKS - continued Netherlands - continued 15,325 Vendex International NV.............................. $ 448,382 47,790 VNU NV............................................... 1,619,954 ------------ 7,125,990 ------------ Norway - 0.3% 50,020 Petroleum Geo-Services............................... 747,263 ------------ Philippines - 0.1% 108,000 ABS-CBN Broadcasting Corp............................ 118,504 27,200 Benpres Holdings Corp................................ 85,000 1,500,000 Filinvest Development Corp........................... 93,516 ------------ 297,020 ------------ Portugal - 0.6% 203,385 BPI-Society Gestora, Restigered Shares............... 814,868 17,585 Jeronimo Martins SGPS SA............................. 492,071 ------------ 1,306,939 ------------ Singapore - 0.9% 250,000 Hong Leong Finance................................... 460,427 1 Overseas Chinese Bank................................ 7 62,809 Overseas Union Bank Ltd.............................. 272,179 39,000 Sembcorp Industries Ltd.............................. 49,293 29,000 * Singapore Press Holdings Ltd....................... 497,442 47,000 Singapore Telecom (b)................................ 89,389 80,000 United Overseas Bank................................. 606,681 ------------ 1,975,418 ------------ Spain - 2.1% 11,167 Acciona SA........................................... 539,246 20,716 * Baron de Ley SA.................................... 556,969 36,700 Empresa Nacional de Celulosas SA (b)................. 688,764 95,195 Prosegur, CIA de Seguridad SA........................ 782,877 46,520 Tabacalera, Ser. A (b)............................... 767,606 61,104 Telefonica SA........................................ 1,007,607 29,960 Viscofan Envolturas Celuosicas SA.................... 246,073 ------------ 4,589,142 ------------ Sweden - 2.0% 51,760 Celsius AB, Ser. B................................... 814,293 58,415 Ericsson LM Telephone, Ser B......................... 2,436,392 71,877 Sparbanken Sverige AB, Ser. A........................ 1,148,307 ------------ 4,398,992 ------------ Switzerland - 1.6% 3,404 Geberit International AG............................. 1,004,466 911 Nestle SA............................................ 1,760,213 3,670 Novartis AG.......................................... 362,876 503 Sulzer AG............................................ 353,713 ------------ 3,481,268 ------------ Taiwan - 0.5% 5,000 Formosa Growth Fund Ltd. ............................ 105,000 5,800 Hon Hai Precision Industry Co., Ltd.................. 95,004 8,600 Synnex Technology International Corp................. 169,678
Shares Value COMMON STOCKS - continued Taiwan - continued 2,000 Taipei Fund.......................................... $ 179,000 30,000 Taiwan Opportunities Fund LT......................... 325,500 7,257 Taiwan Semiconductor Manufacturing Co. Ltd. (b)...... 251,274 ------------ 1,125,456 ------------ Thailand - 0.4% 50,000 BEC World Public Co. Ltd............................. 310,840 40,000 Electricity Generating Public Co..................... 52,843 200,000 Siam Commercial Bank................................. 226,655 64,900 Siam Pulp & Paper.................................... 136,171 41,300 Thai Airways International Plc....................... 49,479 ------------ 775,988 ------------ Turkey - 0.3% 17,200,000 Akbank Turk Anonim Sirket............................ 268,320 42,000 Haci Omer Sabanci Holdings SA........................ 302,400 ------------ 570,720 ------------ United Kingdom - 11.3% 30,650 Abbey National Bank Plc.............................. 598,580 30,000 Allied Domecq........................................ 168,171 44,700 Arcadia Group Plc.................................... 112,428 35,000 Arriva Plc........................................... 184,117 27,999 Associated British Ports Holdings Plc................ 139,003 13,000 Bank Of Scotland..................................... 162,631 16,720 Barclays Bank Plc.................................... 513,163 27,585 Bass Plc............................................. 302,464 22,397 BBA Group Plc........................................ 156,478 42,000 BG Plc............................................... 233,368 46,333 Blue Circle Industries Plc........................... 215,171 50,000 Body Shop International Plc.......................... 95,757 19,000 Britannic Assurance Plc.............................. 339,827 58,000 British Aerospace Plc................................ 343,246 49,000 British Airways Plc.................................. 250,514 59,500 British America Tobacco Industries Plc............... 395,160 225,000 British Biotech...................................... 107,264 45,000 British-Borneo Oil & Gas Plc......................... 119,100 80,000 Burford Holdings Plc................................. 132,827 15,833 Burmah Castrol Plc................................... 273,032 40,000 Carillion Plc........................................ 83,221 20,000 Celltech Plc......................................... 149,595 17,000 Chelsfield Plc....................................... 90,825 90,000 Coats Viyella Plc.................................... 69,167 39,000 Cookson Group Plc.................................... 119,813 32,400 D.F.S. Furniture Co. Plc............................. 148,069 44,000 Debenhams Retail Plc................................. 186,615 37,000 Diageo Plc........................................... 376,502 15,500 Dixons Group Plc..................................... 274,679 51,700 * Elan Corp. Plc, ADR (b)............................ 1,331,275 27,800 EMAP Plc............................................. 361,033 37,000 Enterprise Oil Plc................................... 263,369 89,300 Fairview Holdings Plc................................ 201,116 64,000 First Choice Holidays Plc............................ 122,043
10 EVERGREEN Perpetual Global Fund Schedule of Investments (continued) October 31, 1999
Shares Value COMMON STOCKS - continued United Kingdom - continued 18,000 Frogmore Estates Plc.................................. $ 137,594 40,000 Gallaher Group Plc.................................... 240,996 14,800 Garban Plc............................................ 48,903 24,500 Granada Group Plc..................................... 194,531 22,000 Great University Stores Plc........................... 166,724 35,000 Greenalls Group Plc................................... 178,363 40,000 Halma Plc............................................. 71,016 66,412 Hilton Group Plc...................................... 203,065 10,000 Housing & Commercial Bank............................. 265,000 40,312 HSBC Holdings Plc (Hong Kong exchange) (b)............ 485,155 36,750 Iceland Group Plc..................................... 174,896 36,000 III Group Plc......................................... 449,771 34,000 Imperial Chemical Industries Plc...................... 338,429 15,000 Inchcape Plc.......................................... 74,715 11,000 Indian Opportunities Fund............................. 150,700 49,930 Invesco English and International Trust Plc........... 143,640 28,000 Land Securities Plc................................... 348,901 40,000 Legal & General Group Plc............................. 111,128 66,000 Lloyds TSB Group Plc.................................. 913,547 80,000 Medeva Plc............................................ 203,843 78,666 Meggitt Plc........................................... 196,565 5,267 N Brown Group Plc..................................... 32,642 59,500 National Power Plc.................................... 403,963 28,250 National Westminster Bank Plc......................... 638,088 49,326 Next Plc.............................................. 532,336 93,400 Northern Foods Plc.................................... 145,863 35,500 Nycomed Amersham Plc.................................. 218,260 17,000 P & O Finance BV...................................... 244,530 144,000 Pilkington Plc........................................ 216,008 24,959 PowderJect Pharmaceuticals Plc........................ 327,010 26,000 Powergen Plc.......................................... 229,521 19,750 Prudential Corp. Plc.................................. 309,735 14,600 Railtrack Group Plc................................... 299,052 44,750 Rank Group............................................ 139,405 19,100 Reckitt & Colman Plc.................................. 231,721 22,550 Rio Tinto Plc......................................... 385,156 131,000 Rolls-Royce Plc....................................... 465,158 47,000 Sainsbury (J.) Plc.................................... 282,397 14,200 Scot & Newcastle...................................... 132,357 32,000 Scot & Southern Energy Plc............................ 304,056 65,000 Scotia Holdings Plc................................... 160,280 24,500 Scottish Power Plc.................................... 226,751 28,550 Securicor Plc......................................... 279,253 100,000 Shell Transportation & Trading Co. Plc................ 766,057 428,500 Signet Group Plc...................................... 369,816 32,750 Smith (H.W.) Group Plc................................ 239,309 17,193 Smiths Industries Plc................................. 233,457 21,000 Spirax-Sarco Engineering Plc.......................... 160,872 40,000 Stagecoach Holdings................................... 113,758
Shares Value COMMON STOCKS - continued United Kingdom - continued 38,075 Standard Chartered Bank.............................. $ 533,279 39,330 Sun Life & Provincial Holdings Plc................... 293,693 25,187 Tate & Lyle Plc...................................... 164,998 104,400 Tesco Plc............................................ 310,209 57,428 The Throgmorton Trust Plc............................ 73,873 39,500 TI Group Plc......................................... 266,229 30,000 Tomkins Plc.......................................... 101,563 22,500 Trinity Plc.......................................... 208,981 41,000 Unilever Plc......................................... 380,809 43,000 United Assurance Group CNV........................... 275,682 20,947 United Utilities Plc................................. 207,642 30,622 Wolseley Plc......................................... 208,657 ------------ 24,829,531 ------------ United States - 34.2% 9,500 Adelphia Communications Corp......................... 518,938 4,200 Alcoa, Inc........................................... 255,150 5,000 Allied Riser Communications Corp..................... 90,313 4,300 Allied Signal, Inc................................... 244,831 8,300 * AMFM, Inc. (b)..................................... 581,000 31,300 Associates First Capital Corp., Cl. A................ 1,142,450 50,267 AT&T Corp............................................ 2,349,982 20,000 Atlantic Korean Smaller Cy Fund...................... 275,000 23,800 Baker Hughes, Inc.................................... 664,913 48,400 BankAmerica Corp..................................... 3,115,750 10,600 Bell Atlantic Corp................................... 688,337 11,900 Bristol-Myers Squibb Co.............................. 914,069 8,700 Cardinal Health, Inc................................. 375,188 12,000 * CBS Corp. ......................................... 585,750 2,700 Chase Manhattan Corp. ............................... 235,913 17,400 * Ciena Corp. ....................................... 613,350 22,200 * Cisco Systems, Inc................................. 1,642,800 35,600 Citigroup, Inc. ..................................... 1,926,850 15,000 Coastal Corp......................................... 631,875 11,500 Coca Cola Co......................................... 678,500 22,500 Coca Cola Enterprises, Inc........................... 575,156 29,100 Columbia / HCA Healthcare Corp....................... 702,037 19,000 Comcast Corp., Cl. A................................. 800,375 14,400 Concord EFS, Inc..................................... 389,700 24,000 Conoco, Inc., Cl. A (b).............................. 658,500 24,000 * Cox Communications, Inc. Cl. A (b)................. 1,090,500 9,000 Dayton Hudson Corp. ................................. 581,625 21,250 * Dell Computer Corp. ............................... 852,656 14,700 Donaldson Lufkin & Jenrette, Inc..................... 760,725 11,000 Dow Chemical Co...................................... 1,300,750 7,064 Eesti Telekom........................................ 111,964 13,000 El Paso Energy Corp.................................. 533,000 15,000 * EMC Corp........................................... 1,095,000 10,000 Emerson Electric Co.................................. 600,625 16,800 Enron Corp........................................... 670,950 13,500 EOG Resources, Inc. (b).............................. 280,969
11 EVERGREEN Perpetual Global Fund Schedule of Investments (continued) October 31, 1999
Shares Value COMMON STOCKS - continued United States - continued 12,000 Federal Home Loan Mortgage Corp....................... $ 648,750 10,300 Federal National Mortgage Assoc....................... 728,725 19,000 * Federated Department Stores, Inc. (b)............... 811,062 21,319 Fleet Boston Corp..................................... 930,041 15,800 Fluor Corp............................................ 630,025 18,500 Ford Motor Co......................................... 1,015,187 7,000 Fundtech Ltd. ........................................ 93,625 4,000 Gedeon Richter Rt. ................................... 182,517 18,100 General Electric Co................................... 2,453,681 13,000 GTE Corp. ............................................ 975,000 110,400 * HEALTHSOUTH Corp. .................................. 634,800 9,200 Home Depot, Inc....................................... 694,600 14,500 Intel Corp. .......................................... 1,122,844 4,000 International Business Machines Corp.................. 393,500 38,400 International Paper Co. .............................. 2,020,800 14,400 Johnson & Johnson..................................... 1,508,400 30,000 Kinder Morgan, Inc.................................... 603,750 32,400 * Kroger Co........................................... 674,325 6,400 LG Electronics........................................ 65,920 6,000 Lilly (Eli) & Co...................................... 413,250 41,700 Lucent Technologies, Inc.............................. 2,679,225 45,000 MBNA Corp............................................. 1,243,125 18,000 McDonald's Corp. ..................................... 742,500 13,400 * MCI WorldCom, Inc. ................................. 1,149,887 13,800 Mead Corp............................................. 496,800 34,200 Merck & Co., Inc...................................... 2,721,037 4,000 * Micron Technology, Inc.............................. 285,250 29,200 * Microsoft Corp...................................... 2,702,825 29,800 Molex, Inc............................................ 983,400 3,900 Motorola, Inc. ....................................... 380,006 7,200 Noble Affiliates, Inc................................. 182,250 7,200 * Oracle Systems Corp................................. 342,450 17,000 Pepsico, Inc. ........................................ 589,688 33,000 Pfizer, Inc. ......................................... 1,303,500 15,000 Pharmacia & Upjohn, Inc............................... 809,062 9,600 Phelps Dodge Corp..................................... 541,200 31,000 Philip Morris Companies, Inc.......................... 780,812 54,000 * Republic Services, Inc.............................. 661,500 10,300 Ritek Corp............................................ 137,505 6,200 SBC Communications, Inc............................... 315,813 18,900 * Smurfit Container Corp. ............................ 408,713 25,200 * Staples, Inc........................................ 559,125 37,000 Stewart Enterprises, Inc., Cl. A...................... 175,750 9,500 * Sybron International Corp. ......................... 226,219
Shares Value COMMON STOCKS - continued United States - continued 5,000 Synnex Technology International Corp................ $ 97,500 19,000 Texaco, Inc......................................... 1,166,125 22,900 The Williams Companies, Inc......................... 858,750 12,800 Tosco Corp.......................................... 324,000 9,000 Travelers Property Casualty Corp., Cl. A............ 324,000 5,000 Triton PCS Holdings, Inc. .......................... 176,250 17,000 Tyco International Ltd.............................. 678,938 59,200 * United States Foodservice......................... 1,135,900 11,400 Unocal Corp......................................... 393,300 8,600 * Vitesse Semiconductor Corp. ...................... 394,525 11,400 Wal-Mart Stores, Inc................................ 646,238 13,200 Warner-Lambert Co. ................................. 1,053,525 16,900 Waste Management, Inc............................... 310,538 16,600 * Weatherford International, Inc. (b)............... 562,325 11,800 Wells Fargo Co. .................................... 564,925 3,600 Yahoo!, Inc. (b).................................... 644,625 26,000 York International Corp............................. 612,625 ------------ 75,498,024 ------------ Total Common Stocks (cost $201,315,399)............. 220,150,757 ------------ PREFERRED STOCKS - 0.6% Germany - 0.6% 475 Porsche AG.......................................... 1,297,114 ------------ Total Preferred Stock (cost $916,058).................................... 1,297,114 ------------ WARRANTS - 0.1% Malaysia - 0.0% 20,000 * United Engineers Ltd. Berhad, expire 11/22/2002... 0 ------------ Singapore - 0.1% 300,000 Deutsche Bank AG, expire 3/28/2002.................. 230,214 ------------ Total Warrants (cost $154,576).................................... 230,214 ------------ RIGHTS - 0.0% Brazil - 0.0% 8 * Companhia Brasileira de Distribuicao Grupo Pao de Acucar............................................. 0 ------------ United Kingdom - 0.0% 80,000 * Burford Holdings Plc.............................. 0 ------------ Total Rights (cost $0).......................................... 0 ------------
12 EVERGREEN Perpetual Global Fund Schedule of Investments (continued) October 31, 1999
Principal Amount Value CORPORATE BONDS - 0.4% Malaysia - 0.0% $ 70,000 Telekom Malaysia Berhad 4.00%, 10/3/2004.................................... $ 58,100 ------------ United Kingdom - 0.0% 30,392 Burmah Castrol Plc 1.00%, 12/31/2009................................... 49,961 19,000 Scotia Holdings 8.50%, 3/26/2002.................................... 25,768 ------------ 75,729 ------------ United States - 0.4% 835,000 Williams Communications Group, Inc. 10.875%, 10/1/2009...................... 860,050 ------------ Total Corporate Bonds (cost $979,585)..................................... 993,879 ------------
Principal Amount Value SHORT-TERM INVESTMENTS - 9.6% $20,253,588 Navigator Prime Portfolio - 9.2% (cost $20,253,588) (c)............................................... $ 20,253,588 ------------ 939,244 Repurchase Agreement - 0.4% State Street Bank & Trust Co., purchased 10/29/1999, 5.16%, maturing 11/1/1999, maturity value $939,648 (cost $939,244) (a)............................... 939,244 ------------ Total Short-Term Investments (cost $21,192,832)................................ 21,192,832 ------------
Total Investments - (cost $224,558,450)......................... 110.6% 243,864,796 Other Assets and Liabilities - net........................... (10.6) (23,398,825) ----- ------------ Net Assets - ................................ 100.0% $220,465,971 ===== ============
(a) The repurchase agreement is fully collateralized by the U.S. government and/or agency obligations based on market prices plus accrued interest at October 31, 1999. (b) All or a portion of this security is on loan (See Note 6). (c) Represents investment in cash collateral received for securities on loan. * Non-income producing security. 144A Security that may be resold to "qualified institutional buyers" under Rule 144A of the Securities Act of 1933. This security has been determined to be liquid under guidelines established by the Board of Trustees. Summary of Abbreviations ADR American Depository Receipt GDR Global Depository Receipt GDS Global Depository Shares At October 31, 1999, the Fund held securities in the following indus- tries:
Percent of Market Value Portfolio Assets - -------------------------------------------------------------------------------- Banking........................................... $ 22,605,035 9.3% Mutual Fund Shares................................ 20,253,588 8.3% Telecommunications................................ 19,679,369 8.1% Financial Services................................ 15,513,979 6.4% Health & Personal Care............................ 15,418,489 6.3% Electrical & Electronics.......................... 15,253,437 6.3% Food & Household Products......................... 13,423,068 5.5% Chemicals......................................... 12,774,138 5.2% Energy Sources.................................... 11,384,572 4.7% Technology........................................ 10,385,596 4.3% Forest Products & Paper........................... 8,658,850 3.5% Multi-Industry.................................... 7,030,730 2.9% Broadcasting & Publishing......................... 6,773,420 2.8% Transportation.................................... 6,068,000 2.5% Utilities-Electric, Gas & Water................... 5,480,647 2.2% Beverages & Tobacco............................... 4,796,367 2.0% Merchandising..................................... 4,736,610 1.9% Wholesale & International Trade................... 4,679,858 1.9% Business & Public Services........................ 4,143,780 1.7% Automobiles....................................... 3,974,156 1.6% Other............................................. 30,831,107 12.6% ------------ ------ $243,864,796 100.0% ============ ======
See Notes to Financial Statements. 13 EVERGREEN Perpetual Global Fund Schedule of Investments September 30, 1999
Shares Value COMMON STOCKS - 97.3% Argentina - 0.1% 1,600 Inversiones y Representaciones SA, GDR.............. $ 45,000 11,120 Perez Companc SA, Cl. B............................. 67,286 1,600 Telecom Argentina - France Telecom SA, Cl. B, ADR (b)................................................ 42,700 ------------ 154,986 ------------ Austria - 0.3% 12,560 Bank Austria AG..................................... 625,552 ------------ Belgium - 0.3% 20,562 Fortis (B).......................................... 670,315 ------------ Brazil - 0.3% 3,400,000 Companhia Brasileira de Distribuicao Grupo Pao de Acucar............................................. 68,638 3,400 Companhia Energetica de Minas Gerais, ADR........... 51,373 3,500,000 Companhia Siderurgica de Tubarao.................... 29,395 3,650 Companhia Vale do Rio Doce, ADR (b)................. 76,993 1,500,000 Eletropaulo Metropolitana-Electricidade de Sao Paulo SA................................................. 71,205 2,800 * Embratel Participacoes SA, ADR (b)................ 32,025 2,700,000 Gerdau SA........................................... 42,254 90,800 Industrias Klabin de Papel e Celulose SA........................................ 48,313 710,000 Petroleo Brasileiro SA.............................. 106,296 4,200 Tele Norte Leste Participacoes SA, ADR (b).......... 65,100 2,600 Telesp Celular Participacoes SA (b)................. 67,925 2,500 Uniao de Bancos Brasileiros SA, GDR (b)............................................ 44,219 ------------ 703,736 ------------ Canada - 0.9% 30,300 Barrick Gold Corp................................... 659,025 27,500 * Canadian Natural Resources Ltd.................... 643,888 42,700 Placer Dome, Inc.................................... 635,162 ------------ 1,938,075 ------------ Chile - 0.1% 2,400 Banco De A Edward................................... 38,400 2,350 Chilectra SA, ADR................................... 44,548 3,600 Embotelladora Andina SA, Ser. A (b)................. 62,325 4,000 Empresa Nacional de Electric, ADR................... 52,000 ------------ 197,273 ------------ Croatia - 0.1% 27,000 Zagrebacka Banka Ulc Reg S, GDR..................... 211,950 ------------ Czech Republic - 0.0% 9,924 Komercni Banka AS................................... 84,354 ------------ Denmark - 0.3% 6,155 Novo Nordisk AS, Ser. B............................. 733,422 ------------
Shares Value COMMON STOCKS - continued Finland - 3.0% 18,000 Hansabank........................................... $ 90,129 15,332 Huhtamaki Group..................................... 485,118 10,860 Konecranes Finance Oyj.............................. 295,027 28,770 Metra AB Oyj........................................ 551,702 23,808 Nokia AB Oyj........................................ 2,133,099 99,362 Stora Enso Oyj...................................... 1,317,898 45,320 UPM-Kymmene Oyj..................................... 1,545,013 ------------ 6,417,986 ------------ France - 8.5% 11,214 Atos SA............................................. 1,438,398 20,503 * Banque Nationale de Paris......................... 1,637,123 24,345 Carbone Lorraine SA (b)............................. 1,296,797 7,770 Coflexip SA (b)..................................... 726,788 6,995 Compagnie de Saint Gobain........................... 1,304,121 12,072 Entrelec Groupe SA.................................. 560,735 23,670 Eramet SLN.......................................... 1,313,797 8,010 Imerys SA........................................... 1,214,310 840 Isis................................................ 61,032 18,742 Pechiney SA......................................... 1,038,273 19,116 Schneider SA........................................ 1,399,091 9,370 Societe Nationale Elf Aquitaine SA.................. 1,637,101 15,050 Total Fina SA, Cl. B (b)............................ 1,891,954 98,160 Usinor SA........................................... 1,385,615 21,713 Vivendi (b)......................................... 1,525,551 ------------ 18,430,686 ------------ Germany - 4.6% 1,860 * AVA Allg Handels der Verbraucher AG............... 752,989 37,540 BASF AG............................................. 1,599,729 328,000 Deutsche Bank AG.................................... 314,679 14,890 Dresdner Bank AG.................................... 701,147 97,250 Elexis AG........................................... 500,413 35,760 * Global TeleSystems Group, Inc. (b)................ 705,143 8,729 Henkel KGaA......................................... 548,667 67,250 Lufthansa AG........................................ 1,230,857 9,448 Mannesmann AG....................................... 1,509,813 10,916 Siemens AG.......................................... 901,857 23,920 Veba AG............................................. 1,311,109 ------------ 10,076,403 ------------ Greece - 0.3% 6,480 Chipita International Plc........................... 203,701 6,231 Hellenic Telecommunications Organization SA (OTE), GDR................................................ 145,391 5,200 Hellas Telecommunications SA (b).................... 98,150 8,840 Minoan Lines........................................ 222,024 ------------ 669,266 ------------ Hong Kong - 3.0% 608,000 Aeon Credit Service Co. Ltd......................... 270,038 360,000 Amoy Properties Ltd................................. 324,416 320,000 Axa China Region Ltd................................ 210,098
14 EVERGREEN Perpetual Global Fund Schedule of Investments (continued) September 30, 1999
Shares Value COMMON STOCKS - continued Hong Kong - continued 22,000 Brilliance China Automotive Holdings Ltd. ........... $ 578,875 169,420 Cable & Wireless Hong Kong Ltd. ..................... 369,689 749,000 Cafe De Coral Holdings............................... 332,662 40,000 Cheung Kong Holdings Ltd............................. 333,428 281,000 China Telecom (Hong Kong) Ltd. (b)................... 864,582 47,553 Dah Sing Financial Group............................. 190,388 220,000 Henderson Investment Ltd. (b)........................ 141,610 640,000 HKR International Ltd................................ 494,348 91,000 Hutchison Whampoa Ltd................................ 843,482 50,000 Jardine Strategic Holdings Ltd. ..................... 102,000 80,000 Johnson Electric Holdings Ltd. ...................... 386,210 125,293 New World Development Co. Ltd. (b)................... 274,207 1,550,000 Oriental Press Group................................. 209,519 90,000 Pacific Century...................................... 75,890 200,000 Shui On Construction & Materials Ltd. ............... 292,232 800,000 Yanzhou Coal Mining Co. Ltd.......................... 308,968 ------------ 6,602,642 ------------ Hungary - 0.1% 2,390 EGIS Gyogyszergyar RT................................ 70,233 8,890 Pannonplast RT....................................... 145,237 ------------ 215,470 ------------ India - 0.5% 8,000 BSES Ltd............................................. 96,000 5,000 Hindalco Industries Ltd., GDR, 144A.................. 136,250 7,500 Larsen & Toubro Ltd., GDR............................ 163,125 7,500 Larsen & Toubro Ltd., GDS............................ 163,125 17,000 Mahanagar Telep Ni, GDR.............................. 165,750 24,000 Mahindra & Mahindra Ltd.............................. 216,000 1,500 Tata Electric Companies, GDR......................... 247,500 ------------ 1,187,750 ------------ Indonesia - 0.7% 4,800,000 Dankos Labs.......................................... 331,134 1,015,000 PT Astra International Tbk........................... 301,395 1,436,000 PT Bank Nisp Tbk..................................... 202,435 36,000 PT Bat Indonesia Tbk................................. 90,702 200,000 PT HM Sampoerna...................................... 354,529 234,000 PT Indofood Sukses Makmur Tbk........................ 222,489 ------------ 1,502,684 ------------ Ireland - 0.8% 66,480 CRH Plc, London Exchange............................. 1,266,341 36,580 Irish Life & Permanent Plc........................... 409,102 ------------ 1,675,443 ------------ Israel - 0.1% 11,503 Elbit Systems Ltd. .................................. 158,256 ------------ Italy - 1.0% 75,550 Grupo Editoriale L'Espresso.......................... 1,408,525 214,183 Istituto Nationale delle Assicurazioni SpA (b)....... 698,230 ------------ 2,106,755 ------------
Shares Value COMMON STOCKS - continued Japan - 13.9% 70,000 Aoyama Trading Co.................................... $ 2,366,975 360,000 Asahi Glass Co. Ltd. ................................ 2,492,087 170,000 Bank Of Tokyo-Mitsubishi Ltd. ....................... 2,610,717 200,000 Chugai Pharmaceutical Co. Ltd. (b)................... 2,413,939 9,000 Funai Electric Co. Ltd............................... 3,339,126 400,000 Furukawa Electric Co. Ltd............................ 2,385,761 160,000 Kokusai Securities Co. Ltd. (b)...................... 2,344,433 320,000 Nippon Express Co. Ltd............................... 2,146,057 300,000 Oji Paper Co. Ltd.................................... 2,107,735 140,000 Ricoh Co. Ltd. (b)................................... 2,432,724 59,000 Shin Etsu Chemical Co. Ltd. ......................... 2,460,527 375,000 Sumitomo Trust & Banking Co. Ltd..................... 2,969,286 ------------ 30,069,367 ------------ Korea - 0.5% 2 Citc Seoul Access Trust.............................. 16,250 5,000 Korea Telecom Corp................................... 185,000 17,000 Pohang Iron & Steel Ltd., ADR (b).................... 532,312 542 Samsung Electronics Ltd., GDR, 144A........................................... 43,035 4,187 Samsung Electronics Ltd., GDS, 144A........................................... 260,641 ------------ 1,037,238 ------------ Malaysia - 0.4% 84,000 Boustead Holdings Berhad............................. 63,221 60,000 Nanyang Press Holdings............................... 61,263 80,000 Resorts World Berhad................................. 183,158 50,000 Tanjong Plc.......................................... 105,263 100,000 Telekom Malaysia Berhad.............................. 259,211 54,000 UMW Holdings Berhad.................................. 85,974 100,000 * United Engineers Ltd. Berhad....................... 148,684 ------------ 906,774 ------------ Mexico - 0.4% 30,300 ALFA SA de CV, Ser. A................................ 128,044 10,500 Carso Global Telecom................................. 58,115 3,360 Cemex SA de CV....................................... 81,060 54,500 Cifra SA de CV, Ser. V............................... 85,719 7,400 Grupo Carso SA de CV, ADR (b)........................ 61,441 32,900 Grupo Financiero Banamex AC, Ser. O.............................................. 59,128 32,600 Grupo Modelo SA de CV, Ser. C........................ 82,554 2,060 * Grupo Televisa SA, ADR............................. 82,271 3,590 Telefonos de Mexico SA, ADR (b)...................... 255,787 4,600 Tubos de Acero de Mexico SA.......................... 57,015 ------------ 951,134 ------------ Netherlands - 3.4% 33,060 Akzo Nobel NV........................................ 1,401,774 21,363 DSM NV............................................... 847,775
15 EVERGREEN Perpetual Global Fund Schedule of Investments (continued) September 30, 1999
Shares Value COMMON STOCKS - continued Netherlands - continued 15,390 IHC Caland NV........................................ $ 764,041 37,420 Indigo NV (b)........................................ 113,429 16,956 Philips Electronics NV............................... 1,707,055 30,325 Vendex International NV.............................. 872,282 47,790 VNU NV............................................... 1,659,766 ------------ 7,366,122 ------------ Norway - 0.4% 50,020 Petroleum Geo-Services............................... 944,735 ------------ Philippines - 0.1% 27,200 Benpres Holdings Corp. .............................. 85,000 1,500,000 Filinvest Development Corp. ......................... 110,024 ------------ 195,024 ------------ Portugal - 0.6% 40,677 BPI Society Gestora, Registered Shares............... 831,170 17,585 Jeronimo Martins SGPS SA............................. 498,329 ------------ 1,329,499 ------------ Singapore - 1.0% 250,000 Hong Leong Finance................................... 419,364 1 Overseas Chinese Bank................................ 8 62,810 Overseas Union Bank Ltd.............................. 279,114 29,000 * Singapore Press Holdings Ltd......................... 457,446 47,000 Singapore Telecom.................................... 85,756 132,000 United Overseas Bank................................. 1,002,237 ------------ 2,243,925 ------------ Spain - 2.6% 11,167 Acciona SA........................................... 514,059 20,716 * Baron de Ley SA....--................................ 702,923 36,700 Empresa Nacional de Celulosas SA (b)................. 748,733 95,195 Prosegur, CIA de Seguridad SA........................ 836,682 65,280 Tabacalera, Ser. A................................... 1,236,528 81,474 Telefonica SA........................................ 1,304,578 29,960 Viscofan Envolturas Celuosicas SA.................... 271,940 ------------ 5,615,443 ------------ Sweden - 1.8% 51,760 Celsius AB, Ser. B................................... 805,134 58,415 Ericsson LM Telephone, Ser B......................... 1,817,308 2,952 Kinnevik Investments, Ser. B......................... 52,608 71,877 Sparbanken Sverige AB, Ser. A........................ 1,170,879 ------------ 3,845,929 ------------ Switzerland - 1.3% 3,404 Geberit International AG............................. 952,866 911 Nestle SA............................................ 1,712,224 307 Sulzer AG............................................ 193,972 ------------ 2,859,062 ------------
Shares Value COMMON STOCKS - continued Taiwan - 0.4% 5,000 Formosa Growth Fund Ltd.............................. $ 107,500 3,600 Synnex Technology International Corp................. 66,780 2,000 Taipei Fund.......................................... 175,000 30,000 Taiwan Opportunities Fund LT......................... 336,000 7,257 Taiwan Semiconductor Manufacturing Co. Ltd. (b)...... 214,082 ------------ 899,362 ------------ Thailand - 0.4% 370,000 Bank Of Ayudhya Public Co. Ltd....................... 108,518 50,000 BEC World Public Co. Ltd............................. 276,182 40,000 Electricity Generating Public Co..................... 54,748 200,000 Siam Commercial Bank................................. 179,641 64,900 Siam Pulp & Paper.................................... 123,725 41,300 Thai Airways International Plc....................... 55,517 ------------ 798,331 ------------ Turkey - 0.3% 17,200,000 Akbank Turk Anonim Sirket............................ 257,279 42,000 Haci Omer Sabanci Holdings SA........................ 273,000 4,000,000 Yapi ve Kredi Bankasi AS............................. 54,629 ------------ 584,908 ------------ United Kingdom - 11.8% 30,650 Abbey National Bank Plc.............................. 541,360 30,000 Allied Domecq........................................ 170,865 44,700 Arcadia Group Plc.................................... 124,903 35,000 Arriva Plc........................................... 204,528 27,999 Associated British Ports Holdings Plc................ 137,806 12,750 BAA Plc.............................................. 128,130 16,720 Barclays Bank Plc.................................... 489,905 25,571 Bass Plc............................................. 307,485 22,397 BBA Group Plc........................................ 159,637 42,000 BG Plc............................................... 241,285 46,333 Blue Circle Industries Plc........................... 278,381 50,000 Body Shop International Plc.......................... 96,297 19,000 Britannic Assurance Plc.............................. 325,895 58,000 British Aerospace Plc................................ 381,895 49,000 British Airways Plc.................................. 274,845 59,500 British America Tobacco Industries Plc............... 510,282 225,000 British Biotech...................................... 118,519 45,000 British-Borneo Oil & Gas Plc......................... 125,927 80,000 Burford Holdings Plc................................. 151,441 15,833 Burmah Castrol Plc................................... 297,115 40,000 Carillion Plc........................................ 82,186 20,000 Celltech Plc......................................... 150,453 34,000 Chelsfield Plc....................................... 203,161 90,000 Coats Viyella Plc.................................... 81,734 39,000 Cookson Group Plc.................................... 131,606 32,400 D.F.S. Furniture Co. Plc............................. 154,134 44,000 Debenhams Retail Plc................................. 231,771 31,000 Diageo Plc........................................... 316,380
16 EVERGREEN Perpetual Global Fund Schedule of Investments (continued) September 30, 1999
Shares Value COMMON STOCKS - continued United Kingdom - continued 15,500 Dixons Group Plc...................................... $ 277,853 34,564 * Elan Corp. Plc, ADR (b)............................. 1,160,054 27,800 EMAP Plc.............................................. 384,397 37,000 Enterprise Oil Plc.................................... 252,149 89,300 Fairview Holdings Plc................................. 207,265 64,000 First Choice Holidays Plc............................. 148,544 18,000 Frogmore Estates Plc.................................. 140,741 40,000 Gallaher Group Plc.................................... 276,545 14,800 Garban Plc............................................ 50,186 24,500 Granada Group Plc..................................... 210,923 22,000 Great University Stores Plc........................... 166,766 35,000 Greenalls Group Plc................................... 181,770 40,000 Halma Plc............................................. 75,721 66,412 Hilton Group Plc...................................... 231,487 10,000 Housing & Commercial Bank............................. 191,250 55,701 HSBC Holdings Plc (Hong Kong exchange) (b)............ 636,405 36,750 Iceland Group Plc..................................... 176,945 36,000 III Group Plc......................................... 450,965 34,000 Imperial Chemical Industries Plc...................... 374,142 15,000 Inchcape Plc.......................................... 81,729 11,000 Indian Opportunities Fund............................. 154,000 49,930 Invesco English and International Trust Plc........... 137,257 28,000 Land Securities Plc................................... 380,710 40,000 Legal & General Group Plc............................. 113,252 66,000 Lloyds TSB Group Plc.................................. 807,214 80,000 Medeva Plc............................................ 179,096 78,666 Meggitt Plc........................................... 234,380 59,500 National Power Plc.................................... 463,270 28,250 National Westminster Bank Plc......................... 658,007 49,326 Next Plc.............................................. 496,104 93,400 Northern Foods Plc.................................... 162,970 35,500 Nycomed Amersham Plc.................................. 220,306 17,000 P & O Finance BV...................................... 256,890 144,000 Pilkington Plc........................................ 241,779 24,959 PowderJect Pharmaceuticals Plc........................ 304,029 26,000 Powergen Plc.......................................... 265,351 19,750 Prudential Corp. Plc.................................. 303,973 30,000 Punch Taverns Finance Plc............................. 119,855 14,600 Railtrack Group Plc................................... 308,104 44,750 Rank Group............................................ 158,375 19,100 Reckitt & Colman Plc.................................. 237,061 22,550 Rio Tinto Plc......................................... 391,611 106,000 Rolls-Royce Plc....................................... 366,858 47,000 Sainsbury (J.) Plc.................................... 293,220 14,200 Scot & Newcastle...................................... 140,481 32,000 Scot & Southern Energy Plc............................ 300,775 65,000 Scotia Holdings Plc................................... 175,474 24,500 Scottish Power Plc.................................... 222,215 28,550 Securicor Plc......................................... 280,567 100,000 Shell Transportation & Trading Co. Plc................ 744,037
Shares Value COMMON STOCKS - continued United Kingdom - continued 428,500 Signet Group Plc..................................... $ 350,913 32,750 Smith (H.W.) Group Plc............................... 277,635 17,193 Smiths Industries Plc................................ 242,826 21,000 Spirax-Sarco Engineering Plc......................... 181,482 38,075 Standard Chartered Bank.............................. 548,408 39,330 Sun Life & Provincial Holdings Plc................... 307,520 25,187 Tate & Lyle Plc...................................... 154,958 48,500 Telewest Communications Plc.......................... 176,437 104,400 Tesco Plc............................................ 326,520 57,428 The Throgmorton Trust Plc............................ 77,989 39,500 TI Group Plc......................................... 289,343 30,000 Tomkins Plc.......................................... 125,433 22,500 Trinity Plc.......................................... 206,297 31,000 Unilever Plc......................................... 291,376 43,000 United Assurance Group CNV........................... 277,466 20,947 United Utilities Plc................................. 228,608 30,622 Wolseley Plc......................................... 212,213 ------------ 25,486,408 ------------ United States - 33.0% 9,500 Adelphia Communications Corp. (b) . 558,719 4,200 Alcoa, Inc........................................... 260,663 4,300 Allied Signal, Inc................................... 257,731 13,300 * AMFM, Inc. (b)..................................... 809,638 10,100 Associates First Capital Corp., Cl. A................ 363,600 25,967 AT&T Corp............................................ 1,129,564 20,000 Atlantic Korean Smaller Cy Fund...................... 275,000 14,500 Avon Products, Inc. ................................. 359,781 23,800 Baker Hughes, Inc.................................... 690,200 26,400 BankAmerica Corp..................................... 1,470,150 18,000 BankBoston Corp...................................... 780,750 42,200 Bell Atlantic Corp................................... 2,840,587 11,900 Bristol-Myers Squibb Co.............................. 803,250 8,700 Cardinal Health, Inc................................. 474,150 12,000 * CBS Corp........................................... 555,000 2,700 Chase Manhattan Corp................................. 203,513 17,400 * Ciena Corp. ....................................... 635,100 22,200 * Cisco Systems, Inc................................. 1,522,087 35,600 Citigroup, Inc....................................... 1,566,400 25,000 Coastal Corp......................................... 1,023,437 22,500 Coca Cola Enterprises, Inc. (b)...................... 507,656 29,100 Columbia / HCA Healthcare Corp....................... 616,556 19,000 Comcast Corp., Cl. A................................. 757,625 14,400 Concord EFS, Inc..................................... 297,000 24,000 Conoco, Inc., Cl. A (b).............................. 666,000 24,000 * Cox Communications, Inc., Cl. A.................... 1,002,000 15,000 Dayton Hudson Corp. ................................. 900,938 62,500 * Dell Computer Corp. ............................... 2,613,281 7,064 Eesti Telekom........................................ 118,322 20,000 El Paso Energy Corp. ................................ 796,250 15,000 * EMC Corp........................................... 1,071,562 10,000 Emerson Electric Co.................................. 631,875
17 EVERGREEN Perpetual Global Fund Schedule of Investments (continued) September 30, 1999
Shares Value COMMON STOCKS - continued United States - continued 16,800 Enron Corp............................................ $ 693,000 13,500 EOG Resources, Inc. (b)............................... 286,875 10,300 Federal National Mortgage Assoc. ..................... 645,681 19,000 * Federated Department Stores, Inc. (b)............................................. 830,063 15,800 Fluor Corp............................................ 635,950 23,000 Ford Motor Co......................................... 1,154,312 6,900 * Gateway, Inc. ...................................... 306,619 2,000 Gedeon Richter Rt..................................... 82,500 24,100 General Electric Co................................... 2,857,356 13,000 GTE Corp.............................................. 999,375 110,400 * HEALTHSOUTH Corp.................................... 669,300 5,900 Hewlett-Packard Co. .................................. 542,800 14,800 Home Depot, Inc....................................... 1,015,650 14,500 Intel Corp............................................ 1,077,531 4,000 International Business Machines Corp.................. 485,500 58,400 International Paper Co. .............................. 2,806,850 7,200 Johnson & Johnson..................................... 661,500 30,000 KN Energy, Inc........................................ 673,125 32,400 * Kroger Co........................................... 714,825 6,400 LG Electronics........................................ 66,560 6,000 Lilly (Eli) & Co...................................... 384,000 37,700 Lucent Technologies, Inc.............................. 2,445,787 22,600 * Magnetek, Inc. ..................................... 201,988 18,000 McDonald's Corp. ..................................... 774,000 13,400 * MCI WorldCom, Inc. ................................. 963,125 8,000 McKesson HBOC, Inc.................................... 232,000 17,800 Mead Corp............................................. 611,875 34,200 Merck & Co., Inc...................................... 2,216,587 4,000 * Micron Technology, Inc.............................. 266,250 29,200 * Microsoft Corp...................................... 2,644,425 29,800 Molex, Inc............................................ 964,775 3,900 Motorola, Inc. ....................................... 343,200 7,200 Noble Affiliates, Inc................................. 208,800 7,200 * Oracle Systems Corp................................. 327,600 34,000 Pepsico, Inc. ........................................ 1,028,500 15,000 Pharmacia & Upjohn, Inc............................... 744,375 9,600 Phelps Dodge Corp. (b)................................ 528,600 48,000 Philip Morris Companies, Inc.......................... 1,641,000 2,000 RADWARE Ltd........................................... 55,000 34,000 * Republic Services, Inc.............................. 369,750 6,200 SBC Communications, Inc............................... 316,588 18,900 * Smurfit Container Corp.............................. 408,713 25,200 * Staples, Inc........................................ 549,675 37,000 Stewart Enterprises, Inc., Cl. A...................... 224,313 15,000 * Sybron International Corp........................... 403,125 3,700 Symantec Corp. ....................................... 133,084 5,000 Synnex Technology International Corp.................. 92,500 19,000 Texaco, Inc........................................... 1,199,375 12,800 Tosco Corp. (b)....................................... 323,200 9,000 Travelers Property Casualty Corp., Cl. A.............. 265,500
Shares Value COMMON STOCKS - continued United States - continued 18,000 * Tricon Global Restaurants, Inc. .................. $ 736,875 10,000 Tyco International Ltd.............................. 1,032,500 12,000 * Unisys Corp. ..................................... 541,500 59,200 * United States Foodservice......................... 1,065,600 11,400 Unocal Corp......................................... 422,513 11,400 Wal-Mart Stores, Inc................................ 542,213 6,600 Warner-Lambert Co................................... 438,075 16,900 Waste Management, Inc............................... 325,325 16,600 * Weatherford International, Inc. .................. 531,200 11,800 Wells Fargo Co. .................................... 467,575 26,000 York International Corp............................. 934,375 ------------ 71,669,218 ------------ Total Common Stocks (cost $197,517,724)................................ 211,165,483 ------------ PREFERRED STOCKS - 0.7% Brazil - 0.0% 9,000,000 Banco Bradesco SA................................... 42,817 ------------ Channel Islands - 0.1% 5,300 Telesp Participacpoes SA, ADR (b)................... 83,475 ------------ Germany - 0.6% 475 Porsche AG.......................................... 1,295,465 ------------ Total Preferred Stocks (cost $1,065,936).................................. 1,421,757 ------------ WARRANTS - 0.1% France - 0.0% 5,713 * Banque Nationale de Paris, expire 7/15/2002....... 47,473 ------------ Singapore - 0.1% 300,000 * Deutsche Bank AG, expire 3/28/2002................ 215,421 ------------ Total Warrants (cost $154,575).................................... 262,894 ------------ RIGHTS - 0.0% Brazil - 0.0% 575,568 * Companhia Brasileira de Distribuicao Grupo Pao de Acucar (cost $0)................................... 0 ------------ Principal Amount Value CORPORATE BONDS - 0.1% Malaysia - 0.0% $ 70,000 Telekom Malaysia Berhad 4.00%, 10/3/2004................................... 58,100 ------------ United Kingdom - 0.1% 30,392 Burmah Castrol Plc 1.00%, 12/31/2009.................................. 50,028 19,000 Scotia Holdings 8.50%, 3/26/2002................................... 25,177 ------------ 75,205 ------------ Total Corporate Bonds (cost $150,865).................................... 133,305 ------------
18 EVERGREEN Perpetual Global Fund Schedule of Investments (continued) September 30, 1999
Principal Amount Value SHORT-TERM INVESTMENTS - 9.4% $17,425,612 Navigator Prime Portfolio - 8.0% (cost $17,425,612)(c)............................. $ 17,425,612 Repurchase Agreement - 1.4% 3,006,232 State Street Bank & Trust Co., purchased 9/30/1999, 5.28%, maturing 10/1/1999, maturity value $3,006,673 (cost $3,006,232)(a)................... 3,006,232 ------------ Total Short-Term Investments (cost $20,431,844)................................ 20,431,844 ------------
Total Investments - (cost $219,320,944)......................... 107.6% 233,415,283 Other Assets and Liabilities - net........................... (7.6) (16,478,171) ----- ------------ Net Assets................................... 100.0% $216,937,112 ===== ============
(a) The repurchase agreement is fully collateralized by the U.S. government and/or agency obligations based on market prices plus accrued interest at September 30, 1999. (b) All or a portion of this security is on loan (See Note 6). (c) Represents investment in cash collateral received for securities on loan. * Non-income producing security. 144A Security that may be resold to "qualified institutional buyers" under Rule 144A of the Securities Act of 1933. This security has been determined to be liquid under guidelines established by the Board of Trustees. Summary of Abbreviations ADR American Depository Receipt GDR Global Depository Receipt At September 30, 1999, the Fund held securities in the following industries:
Percent of Market Value Portfolio Assets - -------------------------------------------------------------------------------- Banking........................................... $ 20,572,840 8.8% Telecommunications................................ 20,502,576 8.8% Mutual Fund Shares................................ 17,425,612 7.5% Electrical & Electronics.......................... 15,995,129 6.9% Food & Household Products......................... 15,299,564 6.6% Energy Sources.................................... 12,897,762 5.5% Health & Personal Care............................ 11,470,298 4.9% Financial Services................................ 10,922,575 4.7% Chemicals......................................... 10,138,933 4.3% Technology........................................ 9,958,183 4.3% Forest Products & Paper........................... 9,718,854 4.2% Broadcasting & Publishing......................... 6,644,561 2.8% Multi-Industry.................................... 6,009,785 2.6% Merchandising..................................... 5,508,204 2.4% Transportation.................................... 5,471,911 2.3% Wholesale & International Trade................... 5,003,219 2.1% Beverages & Tobacco............................... 4,879,110 2.1% Utilities-Electric, Gas & Water................... 4,535,257 1.9% Building Materials & Components................... 4,145,312 1.8% Business & Public Services........................ 4,077,911 1.7% Automobiles....................................... 3,912,905 1.7% Machinery & Engineering........................... 3,889,165 1.7% Other............................................. 24,435,617 10.4% ------------ ------ $233,415,283 100.0% ============ ======
19 EVERGREEN Perpetual Global Fund (formerly Mentor Perpetual Global Portfolio) Statements of Assets and Liabilities
October 31, September 30, 1999 1999 - -------------------------------------------------------------------------------- Assets Identified cost of securities...................... $224,558,450 $219,320,944 Net unrealized gains or losses on securities....... 19,306,346 14,094,339 - -------------------------------------------------------------------------------- Market value of securities......................... 243,864,796 233,415,283 Cash............................................... 0 3,315 Foreign currency, at value (cost $123,971 and $2,314,634, respectively)......................... 123,963 2,260,874 Receivable for securities sold..................... 4,747,173 2,211,094 Receivable for Fund shares sold.................... 387,169 497,711 Dividends and interest receivable.................. 390,336 523,299 Prepaid expenses and other assets.................. 65,251 11,975 - -------------------------------------------------------------------------------- Total assets....................................... 249,578,688 238,923,551 - -------------------------------------------------------------------------------- Liabilities Payable for securities purchased................... 3,787,722 3,892,602 Payable for Fund shares redeemed................... 4,502,392 511,645 Payable for securities on loan..................... 20,253,588 17,425,612 Advisory fee payable............................... 191,109 0 Distribution Plan expenses payable................. 127,124 0 Accrued expenses and other liabilities............. 250,782 156,580 - -------------------------------------------------------------------------------- Total liabilities.................................. 29,112,717 21,986,439 - -------------------------------------------------------------------------------- Net assets.......................................... $220,465,971 $216,937,112 - -------------------------------------------------------------------------------- Net assets represented by Paid-in capital.................................... $170,619,983 $174,285,894 Undistributed net investment income................ 0 0 Accumulated net realized gains or losses on securities and foreign currency related transactions...................................... 30,529,013 28,560,938 Net unrealized gains or losses on securities and foreign currency related transactions............. 19,316,975 14,090,280 - -------------------------------------------------------------------------------- Total net assets.................................... $220,465,971 $216,937,112 - -------------------------------------------------------------------------------- Net assets consists of Class A............................................ $ 86,341,098 $ 88,743,323 Class B............................................ 1,048,363 -- Class C............................................ 133,075,119 128,192,443 Class Y............................................ 1,391 1,346 - -------------------------------------------------------------------------------- Total net assets.................................... $220,465,971 $216,937,112 - -------------------------------------------------------------------------------- Shares outstanding Class A............................................ 3,618,136 3,842,761 Class B............................................ 43,920 -- Class C............................................ 5,860,895 5,830,495 Class Y............................................ 58 58 - -------------------------------------------------------------------------------- Net asset value per share Class A............................................ $ 23.86 $ 23.09 - -------------------------------------------------------------------------------- Class A--Offering price (based on sales charge of 4.75% and 5.75%, respectively).................... $ 25.05 $ 24.50 - -------------------------------------------------------------------------------- Class B............................................ $ 23.87 -- - -------------------------------------------------------------------------------- Class C............................................ $ 22.71 $ 21.99 - -------------------------------------------------------------------------------- Class Y............................................ $ 23.99 $ 23.21 - --------------------------------------------------------------------------------
See Notes to Financial Statements. 20 EVERGREEN Perpetual Global Fund Statements of Operations
One-Month Period Ended Year Ended October 31, 1999 (a) September 30, 1999 - -------------------------------------------------------------------------------- Investment income Dividends (net of foreign withholding taxes of $15,483 and $365,642, respectively)........................ $ 108,804 $ 3,490,181 Interest.............................. 14,583 369,186 - -------------------------------------------------------------------------------- Total investment income................ 123,387 3,859,367 - -------------------------------------------------------------------------------- Expenses Advisory fee.......................... 191,652 2,082,585 Distribution Plan expenses............ 128,720 1,396,415 Administrative services fees.......... 27,795 255,756 Transfer agent fee.................... 33,704 315,561 Trustees' fees and expenses........... 345 3,791 Custodian fee......................... 24,579 264,914 Organization expenses................. 0 5,424 Other................................. 76,270 246,627 - -------------------------------------------------------------------------------- Total expenses........................ 483,065 4,571,073 Less: Fee credits..................... (552) 0 - -------------------------------------------------------------------------------- Net expenses.......................... 482,513 4,571,073 - -------------------------------------------------------------------------------- Net investment loss................... (359,126) (711,706) - -------------------------------------------------------------------------------- Net realized and unrealized gains or losses on securities and foreign currency related transactions Net realized gains or losses on: Securities............................ 2,421,010 30,856,088 Foreign currency related transactions......................... (93,809) (829,048) - -------------------------------------------------------------------------------- Net realized gains on securities and foreign currency related transactions......................... 2,327,201 30,027,040 - -------------------------------------------------------------------------------- Net change in unrealized gains on securities and foreign currency related transactions................. 5,226,695 22,354,768 - -------------------------------------------------------------------------------- Net realized and unrealized gains on securities and foreign currency related transactions................. 7,553,896 52,381,808 - -------------------------------------------------------------------------------- Net increase in net assets resulting from operations...................... $7,194,770 $51,670,102 - --------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from September 30 to October 31, ef- fective October 31, 1999. See Notes to Financial Statements. 21 EVERGREEN Perpetual Global Fund Statements of Changes in Net Assets
One-Month Year Ended September 30, Period Ended --------------------------- October 31, 1999 (a) 1999 1998 - -------------------------------------------------------------------------------- Operations Net investment loss......... $ (359,126) $ (711,706) $ (757,843) Net realized gains on securities and foreign currency related transactions............... 2,327,201 30,027,040 14,799,387 Net change in unrealized gains or losses on securities and foreign currency related transactions............... 5,226,695 22,354,768 (25,459,714) - -------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations................. 7,194,770 51,670,102 (11,418,170) - -------------------------------------------------------------------------------- Distributions to shareholders from Net realized gains Class A..................... 0 (4,794,385) (2,382,830) Class C (b)................. 0 (8,456,186) (4,553,653) Class Y..................... 0 (85) (8) - -------------------------------------------------------------------------------- Total distributions to shareholders............... 0 (13,250,656) (6,936,491) - -------------------------------------------------------------------------------- Capital share transactions Proceeds from shares sold... 13,477,514 122,357,893 78,893,773 Payment for shares redeemed................... (17,143,425) (114,784,615) (44,567,723) Net asset value of shares issued in reinvestment of distributions.............. 0 12,654,681 6,732,722 - -------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from capital share transactions............... (3,665,911) 20,227,959 41,058,772 - -------------------------------------------------------------------------------- Total increase in net assets.................... 3,528,859 58,647,405 22,704,111 Net assets Beginning of period......... 216,937,112 158,289,707 135,585,596 - -------------------------------------------------------------------------------- End of period............... $220,465,971 $ 216,937,112 $158,289,707 - -------------------------------------------------------------------------------- Undistributed net investment income...................... $ 0 $ 0 $ 3,616 - --------------------------------------------------------------------------------
(a) The Fund changed its fiscal year end from September 30 to October 31, ef- fective October 31, 1999. (b) Effective October 18, 1999, shareholders of Mentor Perpetual Global Portfo- lio Class A, Class B and Class Y shares became owners of that number of full and fractional shares of Class A, Class C and Class Y shares, respec- tively, of Evergreen Perpetual Global Fund. Class B shares of Mentor Per- petual Global Portfolio were redesignated as Class C shares of Evergreen Perpetual Global Fund. See Notes to Financial Statements. 22 EVERGREEN Perpetual Global Fund (formerly Mentor Perpetual Global Portfolio) Notes to Financial Statements 1. ORGANIZATION The Evergreen Perpetual Global Fund (the "Fund") (formerly Mentor Perpetual Global Portfolio), is a diversified series of Evergreen International Trust (the "Trust"), a Delaware business trust organized on September 18, 1997. The Trust is an open-end management investment company registered under the Invest- ment Company Act of 1940, as amended (the "1940 Act"). Prior to October 18, 1999, the Fund was a diversified series of Mentor Funds, a Massachusetts busi- ness trust, organized on January 20, 1992 as an open-end management investment company and registered under the 1940 Act. Effective October 18, 1999, the Fund began offering Class A, Class B, Class C and Class Y shares. Class A shares are sold with a maximum front-end sales charge of 4.75%. Class B and Class C shares are sold without a front-end sales charge, but pay a higher ongoing distribution fee than Class A. Class B shares are sold subject to a contingent deferred sales charge that is payable upon re- demption and decreases depending on how long the shares have been held. Class B shares purchased after January 1, 1997 will automatically convert to Class A shares after seven years. Class B shares purchased prior to January 1, 1997 follow the conversion rights at the time the shares were purchased. 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 Y shares are sold at net asset value and are not subject to contingent deferred 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 institu- tional investors or Class Y shareholders of record of certain other funds man- aged by First Union and its affiliates as of December 30, 1994. As a result of the conversion of Mentor Perpetual Global Portfolio on October 18, 1999 into the Trust, the shareholders of Class A, Class B and Class Y of the Mentor Perpetual Global Portfolio became owners of that number of full and fractional shares of Class A, Class C and Class Y shares, respectively, of the Fund. Holders of Class C shares received in the conversion are subject to the schedule of contingent deferred sales charges applicable to Class B shares of Mentor Perpetual Global Portfolio. In addition, effective October 18, 1999, the Fund added a new class of shares designated as Class B. Prior to October 18, 1999, Class A shares were sold with a maximum front-end sales charge of 5.75% payable at the time of purchase. 2. SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies consistently fol- lowed by the Fund in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles, which require management to make estimates and assumptions that affect amounts reported here- in. Actual results could differ from these estimates. A. Valuation of Securities Securities traded on an established exchange or included on the Nasdaq National Market System ("NMS") are valued on the basis of the last sales price on the exchange where the security is primarily traded. Securities traded in the over- the-counter market are valued on the basis of the last sales price. Securities traded on an exchange or NMS and other securities traded in the over-the- counter market for which there has been no sale are valued at the mean between the last reported bid and asked price. Securities for which market quotations are not readily available, including restricted securities, are valued at fair value as determined in good faith according to procedures approved by the Board of Trustees. Short-term investments with remaining maturities of 60 days or less are carried at amortized cost, which approximates market value. Mutual fund shares are valued at the net asset value of each mutual fund. B. Repurchase Agreements The Fund may invest in repurchase agreements. Securities pledged as collateral for repurchase agreements are held in a segregated account by the custodian on the Fund's behalf. Collateral for certain tri-party repurchase agreements is held at the counterparty's custodian in a segregated account for the benefit of the Fund and the counterparty. The Fund monitors the adequacy of the collateral daily and will require the seller to provide 23 Notes to Financial Statements (continued) additional collateral in the event the market value of the securities pledged falls below the carrying value of the repurchase agreement, including accrued interest. The Fund will only enter into repurchase agreements with banks and other financial institutions, which are deemed by the investment advisor to be creditworthy pursuant to guidelines established by the Board of Trustees. C. Foreign Currency The books and records of the Fund are maintained in United States (U.S.) dol- lars. Foreign currency amounts are translated into U.S. dollars as follows: market value of investment securities, other assets and liabilities at the daily rate of exchange; purchases and sales of investment securities and income and expenses at the rate of exchange prevailing on the respective dates of such transactions. Net unrealized foreign exchange gains or losses resulting from changes in foreign currency exchange rates are a component of net unrealized gains or losses on securities and foreign currency related transactions. Net realized foreign currency gains or losses on foreign currency related transac- tions include: foreign currency gains or losses between trade date and settle- ment date on investment securities transactions, foreign currency related transactions and the difference between the amounts of interest and dividends recorded on the books of the Fund and the amount actually received. The portion of foreign currency gains or losses related to fluctuations in exchange rates between the initial purchase trade date and subsequent sale trade date is in- cluded in realized gains or losses on securities. D. Forward Foreign Currency Exchange Contracts The Fund may enter into forward foreign currency exchange contracts ("forward contracts") to settle portfolio purchases and sales of securities denominated in a foreign currency and to hedge certain foreign currency assets or liabili- ties. Forward contracts are recorded at the forward rate and marked-to-market daily. Realized gains or losses arising from such transactions are included in net realized gains or losses on foreign currency related transactions. The Fund bears the risk of an unfavorable change in the foreign currency exchange rate underlying the forward contract and is subject to the credit risk that the other party will not fulfill their obligations under the contract. Forward con- tracts involve elements of market risk in excess of the amount reflected in the Statements of Assets and Liabilities. E. Securities Lending In order to generate income and to offset expenses, the Fund may lend portfolio securities to brokers, dealers and other financial organizations. The Fund's investment advisor will monitor the creditworthiness of such borrowers. Loans of securities may not exceed 33 1/3% of a Fund's total assets and will be col- lateralized by cash, letters of credit or U.S. Government securities that are maintained at all times in an amount equal to at least 100% of the current mar- ket value of the loaned securities, including accrued interest. The Fund moni- tors the adequacy of the collateral daily and will require the borrower to pro- vide additional collateral in the event the value of the collateral falls below 100% of the market value of the securities on loan. While such securities are on loan, the borrower will pay the Fund any income accruing thereon, and the Fund may invest any cash collateral received in portfolio securities, thereby increasing its return. The 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 the Fund and its investors. The Fund may pay fees in connection with such loans. F. 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. Dividend income is recorded on the ex-dividend date, or in the case of some foreign securities, on the date there- after when the Fund is made aware of the dividend. Foreign income and capital gains realized on some foreign securities may be subject to foreign taxes, which are accrued as applicable. G. Federal Taxes The Fund has qualified and intends to continue to qualify as a regulated in- vestment company under the Internal Revenue Code of 1986, as amended (the "Code"). Thus, the Fund will not incur any federal income tax 24 Notes to Financial Statements (continued) liability since it is expected to distribute all of its net investment company taxable income and net capital gains, if any, to its shareholders. The Fund also intends to avoid any excise tax liability by making the required distribu- tions under the Code. Accordingly, no provision for federal taxes is required. To the extent that realized capital gains can be offset by capital loss carryforwards, it is the Fund's policy not to distribute such gains. H. Distributions Distributions from net investment income and/or net realized capital gains for the Fund, if any, are declared and paid at least once during each 12-month pe- riod. 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 accor- dance with income tax regulations, which may differ from generally accepted ac- counting principles. The significant differences between financial statement amounts available for distribution and distributions made in accordance with income tax regulations are primarily due to differing treatment for net operat- ing losses, certain realized losses on securities re-purchased, net realized foreign currency gains or losses and unrealized depreciation on passive foreign investment companies. I. Class Allocations Income, expenses (other than class specific expenses) and realized and unrealized gains and losses are prorated among the classes based on the rela- tive net assets of each class. Currently, class specific expenses are limited to expenses incurred under the Distribution Plans for each class. J. Organization Expenses Organization expenses are amortized to operations over a five-year period on a straight-line basis. In the event any of the initial shares of the Fund are re- deemed by any holder during the five-year amortization period, redemption pro- ceeds will be reduced by any unamortized organization expenses in the same pro- portion as the number of initial shares being redeemed bears to the number of initial shares outstanding at the time of the redemption. As of October 31, 1999, all organization costs have been fully amortized. 3. INVESTMENT ADVISORY AGREEMENT AND OTHER AFFILIATED TRANSACTIONS Mentor Perpetual Advisors, LLC ("Mentor Perpetual") serves as the investment advisor to the Fund. Mentor Perpetual, a wholly owned, indirect subsidiary of First Union, is owned equally by Mentor Investment Advisors, LLC and Perpetual PLC, a diversified financial services holding company. Mentor Perpetual is paid a fee that is computed daily and paid monthly at an annual rate of 1.10% on the first $75 million of the Fund's average daily net assets and 1.00% of its aver- age daily net assets in excess of $75 million. The investment advisor may from time to time voluntarily waive some or its en- tire investment advisory fee and may terminate any such voluntary waiver at any time at its sole discretion. Evergreen Investment Services, Inc. ("EIS"), a subsidiary of First Union, serves as the administrator to the Fund. As administrator, EIS provides the Fund with facilities, equipment and personnel. EIS is entitled to a fee of 0.15% based on the average daily net assets of the Fund. Prior to June 14, 1999, Mentor Investment Group LLC ("Mentor") provided administrative personnel and services to the Fund at the same rate indicated above. Prior to April 1, 1999, the fees paid to Mentor for administrative services for the Fund was 0.10% of the Fund's average daily net assets. For the one-month period ended October 31, 1999 and the year ended September 30, 1999, respectively, the Fund paid or accrued to EIS and Mentor, the follow- ing amounts for administrative services:
EIS Mentor ----------------- October 31, 1999...................... $27,795 $ 0 September 30, 1999.................... 93,826 161,930
Evergreen Service Company ("ESC"), an indirect, wholly owned subsidiary of First Union, serves as the transfer and dividend disbursing agent for the Fund. Prior to September 13, 1999, Boston Financial Data Services, 25 Notes to Financial Statements (continued) Inc. ("BFDS") served as the Fund's transfer and disbursing agent. For the one- month period ended October 31, 1999, the Fund paid or accrued $33,704 to ESC. For the year ended September 30, 1999, the Fund paid or accrued $33,831 to ESC and $281,730 to BFDS, respectively. 4. DISTRIBUTION AGREEMENT Evergreen Distributor, Inc. ("EDI"), a wholly owned subsidiary of The BISYS Group, Inc., serves as principal underwriter to the Fund. The Fund has adopted Distribution Plans, as allowed by Rule 12b-1 of the 1940 Act, for each class of shares, except Class Y. Distribution plans permit a Fund to compensate its principal underwriter for costs related to selling shares of the Fund and for various other services. These costs, which consist primarily of commissions and service fees to broker-dealers who sell shares of the Fund, are paid by the Fund through "Distribution Plan expenses". Under the Distribution Plans, Class A shares incur distribution fees equal to 0.25% of the average daily net assets of the class, all of which is used to pay for shareholder service fees. Class B shares and Class C shares incur distribution fees equal to 1.00% of the average daily net assets of each class. Of this amount, 0.25% of the distribution fees incurred is used to pay for shareholder service fees and 0.75% is used to pay for distribution-related costs. Distribution Plan expenses are calculated daily and paid at least quarterly. The Distribution Plan and Service Plan may be terminated at any time by vote of the Independent Trustees or by vote of a majority of the outstanding voting shares of the respective class. During the one month period ended October 31, 1999, amounts paid or accrued to EDI pursuant to the Fund's Class A, Class B and Class C Distribution Plans were $1,434, $11 and $8,425, respectively. Prior to October 18, 1999, Mentor Distributors, LLC ("Mentor Distributors") served as principal underwriter to the Mentor Perpetual Global Portfolio. Men- tor Distributors is a wholly owned subsidiary of BISYS Fund Services, Inc. The Fund had adopted a Distribution Plan under Rule 12b-1 of the 1940 Act for its Class B shares. To compensate Mentor Distributors for the services it provided and for the expenses it incurred, Class B shares of the Mentor Perpetual Global Portfolio paid a distribution fee of 0.75%, which was accrued daily and paid monthly. Prior to October 18, 1999, the Mentor Perpetual Global Portfolio had also adopted a Shareholder Servicing Plan (the "Service Plan") with Mentor Distribu- tors with respect to its Class A and Class B shares. Under the Service Plan, financial institutions entered into shareholder service agreements with the Mentor Perpetual Global Portfolio to provide administrative support services to their customers who from time to time might have been owners of record or bene- ficial owners of Class A or Class B shares of one or more Funds. In return for providing these support services, a financial institution might have received payments from one or more Funds at an annual rate of 0.25% of the average daily net assets of the Class A or Class B shares of the Mentor Perpetual Global Portfolio beneficially owned by the financial institution's customers for whom it was a holder of record or with whom it had a servicing relationship. During the one-month period ended October 31, 1999 and the year ended September 30, 1999, amounts paid or accrued to Mentor Distributors pursuant to the Fund's Class A and Class C (former Class B) Distribution and Service Plans were as follows:
Class A Class C ------------------- October 31, 1999.................... $ 17,425 $ 101,425 September 30, 1999.................. 203,547 $1,192,868
26 Notes to Financial Statements (continued) 5. CAPITAL SHARE TRANSACTIONS The Fund has an authorized unlimited number of shares of beneficial interest with $0.001 par value authorized. Shares of beneficial interest of the Fund are currently divided into Class A, Class B, Class C and Class Y. Transactions in shares of the Fund were as follows:
Year Ended September 30, One Month Ended -------------------------------------------------- October 31, 1999 (a) (b) 1999 1998 -------------------------- ------------------------ ------------------------ Shares Amount Shares Amount Shares Amount - -------------------------------------------------------------------------------------------------------- Class A Shares sold............. 314,307 $ 10,270,258 4,607,081 $ 98,857,851 2,057,945 $ 42,154,809 Shares redeemed......... (538,932) (15,634,634) (4,131,024) (89,908,934) (1,275,534) (25,637,616) Shares issued in reinvestment of distributions.......... 0 0 247,789 4,601,451 113,726 2,255,270 - -------------------------------------------------------------------------------------------------------- Net increase............ (224,625) (5,364,376) 723,846 13,550,368 896,137 18,772,463 - -------------------------------------------------------------------------------------------------------- Class B (c) Shares sold............. 43,920 1,030,263 0 0 0 0 - -------------------------------------------------------------------------------------------------------- Net increase............ 43,920 1,030,263 0 0 0 0 - -------------------------------------------------------------------------------------------------------- Class C Shares sold............. 98,302 2,176,993 1,142,468 23,500,042 1,821,588 36,737,964 Shares redeemed......... (67,902) (1,508,791) (1,216,923) (24,875,681) (983,971) (18,930,107) Shares issued in reinvestment of distributions.......... 0 0 452,424 8,053,145 232,932 4,477,444 - -------------------------------------------------------------------------------------------------------- Net increase............ 30,400 668,202 377,969 6,677,506 1,070,549 22,285,301 - -------------------------------------------------------------------------------------------------------- Class Y (d) Shares sold............. 0 0 0 0 53 1,000 Shares issued in reinvestment of distributions.......... 0 0 5 85 8 - -------------------------------------------------------------------------------------------------------- Net increase............ 0 0 5 85 53 1,008 - -------------------------------------------------------------------------------------------------------- Net increase............ $ (3,665,911) $ 20,227,959 $ 41,058,772 - --------------------------------------------------------------------------------------------------------
(a) For the one month ended October 31, 1999. The Fund changed its fiscal year end from September 30 to October 31, effective October 31, 1999. (b) Effective October 18, 1999, shareholders of Mentor Perpetual Global Portfo- lio Class A, Class B and Class Y shares became owners of that number of full and fractional shares of Class A, Class C and Class Y shares, respec- tively, of Evergreen Perpetual Global Fund. Class B shares of Mentor Per- petual Global Portfolio were redesignated as Class C shares of Evergreen Perpetual Global Fund. (c) For the period from October 18, 1999 (commencement of class operations) to October 31, 1999. (d) For the period from November 19, 1997 (commencement of class operations) to September 30, 1998. 6. SECURITIES TRANSACTIONS Cost of purchases and proceeds from sales of investment securities (excluding short-term securities) were as follows for the one-month period ended October 31, 1999 and the year ended September 30, 1999:
Cost of Proceeds from Purchases Sales -------------------------- October 31, 1999............. $ 31,158,203 $ 29,102,686 September 30, 1999........... 303,116,535 282,210,933
On October 31, 1999 and September 30, 1999, the composition of unrealized ap- preciation and depreciation on securities based on the aggregate cost of secu- rities for federal income tax purposes were as follows:
Net Gross Gross Unrealized Unrealized Unrealized Appreciation Tax Cost Appreciation Depreciation (Depreciation) ----------------------------------------------------- October 31, 1999.... $225,748,240 $32,682,675 $14,566,119 $18,116,556 September 30, 1999.. 220,093,369 28,725,878 15,403,964 13,321,914
The Fund loaned securities during the one-month period ended October 31, 1999 and the year ended September 30, 1999, to certain brokers who paid the Fund a negotiated lender's fee. These fees are included in interest income. At October 31, 1999 and September 30, 1999, the value of securities on loan and the value of collateral amounted to as follows:
Value of Value of securities on loan collateral ------------------------------ October 31, 1999......... $19,431,123 $20,253,588 September 30, 1999....... 16,664,793 17,425,612
27 Notes to Financial Statements (continued) 7. EXPENSE OFFSET ARRANGEMENTS The Fund has entered into expense offset arrangements with its custodian on June 14, 1999 and with ESC on September 13, 1999 whereby credits realized as a result of uninvested cash balances were used to reduce a portion of the Fund's related expenses. The assets deposited with ESC and the custodian under these expense-offset arrangements could have been invested in income-producing as- sets. The amount of fee credits received by the Fund and the impact on the Fund's expense ratios represented as a percentage of its average net assets were as follows:
Total Fee Credits % of Average Received Net Assets ----------------------- October 31, 1999............... $552 0.00% September 30, 1999............. 0 0.00%
8. FINANCING AGREEMENT On August 6, 1999, the Fund became party to a credit agreement between Ever- green Funds and a group of banks (the "Lenders"). Under this agreement, effec- tive for all other Evergreen Funds on July 27, 1999, the Lenders provide an unsecured revolving credit commitment in the aggregate amount of $1.050 bil- lion. The credit facility is allocated, under the terms of the financing agree- ment, among the Lenders. The credit facility is accessed by the Funds for tem- porary or emergency purposes to fund the redemption of their shares or as gen- eral working capital as permitted by the Fund's borrowing restrictions. Borrowings under this facility are assessed interest at 0.75% per annum above the Federal Funds rate (1.50% per annum above the Federal Funds rate during the period from and including December 1, 1999 through and including January 31, 2000). A commitment fee of 0.10% per annum is incurred on the average daily un- used portion of the revolving credit commitment. The commitment fee is allo- cated to all Funds. For its assistance in arranging this financing agreement, First Union Capital Markets Corp. was paid a one-time arrangement fee of $250,000. State Street Bank and Trust Company ("State Street") serves as paying agent for the Funds, and as paying agent is entitled to a fee of $20,000 per annum which is allocated to all of the Funds. 28 Independent Auditors' Report The Board of Trustees and Shareholders Evergreen International Trust We have audited the accompanying statements of assets and liabilities of Ever- green Perpetual Global Fund ("formerly Mentor Perpetual Global Portfolio"), a portfolio of the Evergreen International Trust, including the schedules of in- vestments, as of October 31, 1999 and September 30, 1999 and the related state- ments of operations for the one-month period ended October 31, 1999 and the year ended September 30, 1999, the statements of changes in net assets for the one-month period ended October 31, 1999 and each of the years in the two-year period ended September 30, 1999 and the financial highlights for the one-month period ended October 31, 1999 and each of the years in the five-year period ended September 30, 1999. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to ex- press an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing stan- dards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial high- lights 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 Oc- tober 31, 1999 and September 30, 1999 by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fi- nancial 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 Ever- green Perpetual Global Fund as of October 31, 1999 and September 30, 1999, the results of its operations for the periods then ended, the changes in its net assets for each of the periods then ended and for the year ended September 30, 1998 and the financial highlights for each of the years or periods described above in conformity with generally accepted accounting principles. /s/ KPMG LLP Boston, Massachusetts November 19, 1999 29 Additional Information (Unaudited) ACQUISITION OF EVEREN BY FIRST UNION On March 25, 1999, First Union and EVEREN Capital Corporation ("EVEREN") an- nounced an agreement to form an asset management joint venture that would com- bine the Evergreen mutual fund complex with the Mentor Investment Group. Under the agreement, First Union would contribute its ownership interest in Ev- ergreen and Mentor and receive 95 percent ownership interest in the new ven- ture. On April 26, 1999, First Union announced an agreement to acquire EVEREN. As part of this acquisition, Mentor would be combined with the Evergreen mutual funds complex and Mentor Funds would convert from a series of Massachusetts business trust to a Delaware business trust. On October 1, 1999, the acquisi- tion of EVEREN by First Union was completed. SPECIAL MEETING OF SHAREHOLDERS A special shareholders meeting of the Mentor Funds shareholders was held on Oc- tober 15, 1999 for the Mentor Perpetual Global Portfolio to approve its conver- sion into a series of an Evergreen Delaware business trust and other related matters. Shareholders of record on August 17, 1999 were entitled to notice and to vote at the meeting and any adjournments thereof. The record date share po- sitions and the number of shares voted was as follows:
Total Shares voted as record date percentage of total share position Shares voted record date shares ----------------------------------------------- 8,841,467 5,103,415 57.72%
During the special meeting, the shareholders of the Mentor Perpetual Global Portfolio voted the following: 1. To approve an Agreement and Plan of Conversion and Termination providing for the conversion of the Mentor Perpetual Global Portfolio into a corresponding series of Evergreen International Trust, a Delaware business trust; 2. To approve the proposed changes of the Fund's investment objectives from fundamental to non-fundamental; 3. To approve the proposed changes to the Fund's investment restrictions: 3A.Diversification 3B.Concentration 3C.Senior securities 3D.Borrowing 3E.Underwriting 3F.Real Estate 3G.Commodities 3H.Lending 3I. To reclassify as non-fundamental certain fundamental restrictions that are no longer required to be fundamental: 3I(i).Short sales 3I(ii).Margin purchases 3I(iii).Pledging 3I(iv).Restricted securities 3I(v).Unseasoned issuers 3I(vi).Illiquid securities 3I(vii).Officers' and directors' ownership of securities 3I(viii).Control of management 3I(ix).Joint trading 3I(x).Other investment companies 3I(xi).Oil, gas and minerals 3I(xii).Foreign securities 3I(xiii).Warrants 30 Additional Information (Unaudited) (continued) 4. To transact any other business that may properly come before the meeting or any adjournment thereof. The results were as follows:
Vote 1. Vote 2. ----------------------------------- Shares % of Shares % of Voted Voted Voted Voted ------------------------------------------------------ FOR............... 4,685,011 91.80% 4,666,688 91.44% AGAINST........... 142,460 2.79% 150,499 2.95% ABSTAIN........... 275,944 5.41% 286,228 5.61% TOTAL............. 5,103,415 100.00% 5,103,415 100.00%
Shares Shares Shares % of Voted % of Voted % of Vote 3. Voted FOR Voted AGAINST Voted ABSTAIN Voted ---------------------------------------------------------------------------- 3A............................ 4,655,765 91.23% 140,193 2.75% 307,457 6.02% 3B............................ 4,654,674 91.21% 141,284 2.77% 307,457 6.02% 3C............................ 4,655,076 91.22% 140,882 2.76% 307,457 6.02% 3D............................ 4,652,598 91.17% 143,360 2.81% 307,457 6.02% 3E............................ 4,654,601 91.21% 141,357 2.77% 307,457 6.02% 3F............................ 4,652,307 91.17% 143,651 2.81% 307,457 6.02% 3G............................ 4,649,967 91.12% 145,991 2.86% 307,457 6.02% 3H............................ 4,651,972 91.16% 143,986 2.82% 307,457 6.02% 3I(i)......................... 4,650,074 91.12% 145,884 2.86% 307,457 6.02% 3I(ii)........................ 4,650,074 91.12% 145,884 2.86% 307,457 6.02% 3I(iii)....................... 4,650,074 91.12% 145,884 2.86% 307,457 6.02% 3I(iv)........................ 4,649,864 91.12% 146,094 2.86% 307,457 6.02% 3I(v)......................... 4,651,940 91.16% 144,018 2.82% 307,457 6.02% 3I(vi)........................ 4,651,234 91.14% 144,724 2.84% 307,457 6.02% 3I(vii)....................... 4,650,911 91.14% 145,047 2.84% 307,457 6.02% 3I(viii)...................... 4,651,234 91.14% 144,724 2.84% 307,457 6.02% 3I(ix)........................ 4,651,940 91.16% 144,018 2.82% 307,457 6.02% 3I(x)......................... 4,651,940 91.16% 144,018 2.82% 307,457 6.02% 3I(xi)........................ 4,651,940 91.16% 144,018 2.82% 307,457 6.02% 3I(xii)....................... 4,651,940 91.16% 144,018 2.82% 307,457 6.02% 3I(xiii)...................... 4,655,059 91.22% 140,899 2.76% 307,457 6.02%
Vote 4. Shares Voted % of Voted -------------------------------------------------------- FOR............................. 4,669,129 91.49% AGAINST......................... 141,597 2.77% ABSTAIN......................... 292,689 5.74% TOTAL........................... 5,103,415 100.00%
YEAR 2000 Like other investment companies, the Fund could be adversely affected if the computer systems used by its investment advisor and the Fund's other service providers are not able to perform their intended functions effectively after 1999 because of the inability of computer software to distinguish the year 2000 from the year 1900. The Fund's investment advisor is taking steps to address this potential year 2000 problem with respect to the computer systems that they use and to obtain satisfactory assurances that comparable steps are being taken by the Fund's other major service providers. At this time, however, there can be no assurance that these steps will be sufficient to avoid any adverse impact on the Fund from this problem. 31 Additional Information (Unaudited)(continued) FEDERAL TAX STATUS OF DISTRIBUTIONS Pursuant to section 852 of the Internal Revenue Code, the Fund has designated aggregate and per share long-term capital gain distribu- tions of $10,430,275 and $1.605, respectively, for the fiscal year ended September 30, 1999. For corporate shareholders, 12.28% of ordinary income dividends paid during the fiscal year ended September 30, 1999 qualified for the dividends received deduction. 32 Evergreen Funds Money Market Treasury Money Market Fund Money Market Fund Municipal Money Market Fund Florida Municipal Money Market Fund New Jersey Municipal Money Market Fund Pennsylvania Municipal Money Market Fund Tax Advantaged Short Intermediate Municipal Fund High Grade Municipal Bond Fund Municipal Bond Fund Municipal Income Fund Connecticut Municipal Bond Fund Florida Municipal Bond Fund Florida High Income Municipal Bond Fund Georgia Municipal Bond Fund Maryland Municipal Bond Fund New Jersey Municipal Bond Fund North Carolina Municipal Bond Fund Pennsylvania Municipal Bond Fund South Carolina Municipal Bond Fund Virginia Municipal Bond Fund Income Capital Preservation and Income Fund Short Intermediate Bond Fund Intermediate Term Bond Fund U.S. Government Fund Diversified Bond Fund Strategic Income Fund High Yield Bond Fund Quality Income Fund Short-Duration Income Fund High Income Fund Balanced Balanced Fund Tax Strategic Foundation Fund Foundation Fund Capital Balanced Fund Capital Income and Growth Fund Growth & Income Utility Fund Income and Growth Fund Equity Income Fund Value Fund Blue Chip Fund Growth and Income Fund Small Cap Value Fund Select Equity Index Fund Domestic Growth Tax Strategic Equity Fund Strategic Growth Fund Stock Selector Fund Evergreen Fund Masters Fund Omega Fund Small Company Growth Fund Aggressive Growth Fund Growth Fund Capital Growth Fund Select Special Equity Fund Global International Global Leaders Fund International Growth Fund Global Opportunities Fund Precious Metals Fund Emerging Markets Growth Fund Latin America Fund Perpetual Global Fund Perpetual International Fund Express Line 800.346.3858 Investor Services 800.343.2898 www.evergreen-funds.com 38951 551384 11/99 ------------------ [LOGO OF EVERGREEN FUNDS] BULK RATE U.S. POSTAGE 200 Berkeley Street PAID Boston,MA 02116 PERMIT NO. 19 HUDSON, MA ------------------ -----END PRIVACY-ENHANCED MESSAGE-----