SUPPLEMENT TO THE PROSPECTUSES OF
EVERGREEN SELECT EQUITY TRUST
I. Evergreen Select Strategic Value Fund, Evergreen Select Diversified Value
Fund, Evergreen Select Large Cap Blend Fund, Evergreen Select Core Equity
Fund, Evergreen Select Strategic Growth Fund, Evergreen Select Equity
Income Fund, Evergreen Select Small Company Value Fund, Evergreen Select
Social Principles Fund, Evergreen Select Balanced Fund, Evergreen Select
Equity Index Fund, Evergreen Select Small Cap Growth Fund (Each a "Fund,"
together the "Funds")
Effective March 12, 1999, the Funds may invest up to 10% of their assets in
foreign securities, including securities issued by foreign branches of U.S.
banks and foreign banks, Canadian commercial paper and Europaper (U.S.
dollar-denominated commercial paper of foreign issuers), American Depositary
Receipts, European Depositary Receipts and Global Depositary Receipts.
The Funds may also buy and sell futures and options on futures relating to
foreign currencies.
There are special risks associated with international investing:
- Currency Risk--The possibility that changes in foreign exchange rates will
affect, favorably or unfavorably, the value of foreign securities.
- Volatility--Investments in foreign stock markets can be more volatile than
investments in U.S. markets. Diplomatic, political or economic
developments could affect investment in foreign countries.
- Expense Considerations--Fixed commissions on many foreign stock exchanges
are generally higher than negotiated commissions on U.S. exchanges.
Expenses for custodial arrangements of foreign securities may be somewhat
greater than typical expenses for custodial arrangements for handling U.S.
securities of equal value.
- Foreign Taxes--Certain foreign governments levy withholding taxes against
dividend and interest income. Although in some countries a portion of
these taxes are recoverable, the non-recovered portion of foreign
withholding taxes will reduce the income received from the securities
comprising the portfolio.
- Regulatory Environment--Foreign companies generally are not subject to
uniform accounting, auditing and financial reporting standards comparable
to those applicable to U.S. domestic companies. There is generally less
government regulation of securities exchanges, brokers and listed
companies abroad than in the U.S. Foreign branches of U.S. banks, foreign
banks and foreign issuers may be subject to less stringent reserve
requirements and to different accounting, auditing, reporting and record
keeping standards than those applicable to domestic branches of U.S. banks
and U.S. domestic issuers.
II. Evergreen Select Equity Index Fund, Evergreen Select Strategic Growth Fund
The prospectuses of the Funds, dated November 1, 1998, are hereby
supplemented to reflect the following edits to the section entitled "Portfolio
Managers" under "Fund Organization and Service Providers."
Evergreen David M. Chow has managed the Strategic Growth Fund since
Select September 1998. Mr. Chow has over 4 years of investment
Strategic experience. He is currently responsible for portfolio management,
Growth Fund risk management, and quantitative research. Prior to joining First
Capital Group in September 1998, he served as an investment
associate/portfolio manager for FUNB's First Investment Advisors
servicing high net worth for individuals from September 1994 to
September 1998. In addition to being a Chartered Financial
Analyst, Mr. Chow is a member of the North Carolina Society of
Financial Analysts.
Evergreen Eric M. Teal has managed the Equity Index Fund since December
Select 1998. Mr. Teal, Vice President and quantitative equity analyst,
Equity Index joined FUNB in September 1993 and currently heads the Quantitative
Fund Analysis/Portfolio Management Unit within FUNB. He also manages
Evergreen Select Diversified Value Fund and is responsible for
risk analysis and quantitative management for other Evergreen
Select Equity Funds.
III. Evergreen Select Common Stock Fund
Effective January 4, 1999, the prospectuses and Statement of Additional
Information of the Fund are hereby supplemented as follows:
Name
The name of the Fund will change to Evergreen Select Core Equity Fund.
Expenses
The tables under the section entitled "Expenses" for the Evergreen Select
Common Stock Fund have been restated to reflect a change in the waiver amounts
for Management Fees and Other Expenses. Management Fees, Other Expenses and
Total Operating Expenses of the Fund will now be as follows:
(Institutional Shares):
Annual Fund Operating Expenses (as a percentage of average daily net assets)
Management Fees Other Total Operating Expenses
(After Expense Waivers) 12b-1 Fees Expenses (After Expense Waivers)
----------------------- ---------- -------- -----------------------
0.60% NONE 0.10% 0.70%
Absent expense waivers and/or reimbursements, the Total Operating Expenses
for the Fund would be:
Management Fees 12b-1 Fees Other Expenses Total Operating Expenses
--------------- ---------- -------------- ------------------------
0.70% NONE 0.10% 0.80%
(Institutional Service Shares):
Annual Fund Operating Expenses (as a percentage of average daily net assets)
Management Fees Other Total Operating Expenses
(After Expense Waivers) 12b-1 Fees Expenses (After Expense Waivers)
---------------------- ---------- -------- ------------------------
0.60% 0.25% 0.10% 0.95%
Absent expense waivers and/or reimbursements, the Total Operating Expenses
for the Fund would be:
Management Fees 12b-1 Fees Other Expenses Total Operating Expenses
--------------- ---------- -------------- ------------------------
0.70% 0.25% 0.10% 1.05%
April 23, 1999
