EVERGREEN SELECT EQUITY TRUST, N-30D, 2000-08-28

EVERGREEN SELECT EQUITY TRUST
N-30D, 2000-08-28

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June 30, 2000

Evergreen Select
Equity Funds
Annual Report

[LOGO OF EVERGREEN] [SEAL]

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Table of Contents
<TABLE>
<S> <C>
Letter to Shareholders ..................................................... 1
Evergreen Select Balanced Fund
Fund at a Glance ........................................................ 2
Portfolio Manager Commentary ............................................ 3
Evergreen Select Core Equity Fund
Fund at a Glance ........................................................ 6
Portfolio Manager Commentary ............................................ 7
Evergreen Select Diversified Value Fund
Fund at a Glance ........................................................ 9
Portfolio Manager Commentary ............................................ 10
Evergreen Select Large Cap Blend Fund
Fund at a Glance ........................................................ 12
Portfolio Manager Commentary ............................................ 13
Evergreen Select Secular Growth Fund
Fund at a Glance ........................................................ 15
Portfolio Manager Commentary ............................................ 16
Evergreen Select Small Cap Growth Fund
Fund at a Glance ........................................................ 18
Portfolio Manager Commentary ............................................ 19
Evergreen Select Small Company
Value Fund
Fund at a Glance ........................................................ 22
Portfolio Manager Commentary ............................................ 23
Evergreen Select Social Principles Fund
Fund at a Glance ........................................................ 25
Portfolio Manager Commentary ............................................ 26
Evergreen Select Strategic Growth Fund
Fund at a Glance ........................................................ 28
Portfolio Manager Commentary ............................................ 29
Evergreen Select Strategic Value Fund
Fund at a Glance ........................................................ 31
Portfolio Manager Commentary ............................................ 32

Financial Highlights
Evergreen Select Balanced Fund .......................................... 35
Evergreen Select Core Equity Fund ....................................... 36
Evergreen Select Diversified Value Fund ................................. 37
Evergreen Select Large Cap Blend Fund ................................... 38
Evergreen Select Secular Growth Fund .................................... 39
Evergreen Select Small Cap Growth Fund .................................. 40
Evergreen Select Small Company Value Fund ............................... 41
Evergreen Select Social Principles Fund ................................. 42
Evergreen Select Strategic Growth Fund .................................. 43
Evergreen Select Strategic Value Fund ................................... 44
Schedules of Investments
Evergreen Select Balanced Fund .......................................... 45
Evergreen Select Core Equity Fund ....................................... 51
Evergreen Select Diversified Value Fund ................................. 57
Evergreen Select Large Cap Blend Fund ................................... 63
Evergreen Select Secular Growth Fund .................................... 67
Evergreen Select Small Cap Growth Fund .................................. 70
Evergreen Select Small Company Value Fund ............................... 74
Evergreen Select Social Principles Fund ................................. 79
Evergreen Select Strategic Growth Fund .................................. 83
Evergreen Select Strategic Value Fund ................................... 86
Combined Notes to Schedules of Investments .............................. .. 89
Statements of Assets and Liabilities ....................................... 90
Statements of Operations ................................................... 92
Statements of Changes in Net Assets ........................................ 94
Combined Notes to Financial Statements ..................................... 98
Independent Auditors' Report ............................................... 112
Additional Information ..................................................... 113
</TABLE>

Evergreen Funds

Evergreen Funds is one of the nation's fastest growing investment companies with
approximately $80 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 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 and 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 Funds(SM) is a service mark of Evergreen Investment Services, Inc.
<PAGE>

Letter to Shareholders
----------------------
August 2000

[PHOTO]
William M. Ennis

[PHOTO]
Dennis Ferro

Dear Evergreen Shareholders,

We are pleased to provide the Evergreen Select Equity Funds annual report, which
covers the twelve-month period ended June 30, 2000.

U.S. Markets Experience Volatility

During the past twelve months, U.S. equity markets experienced significant ups
and downs. Technology, communications and biotechnology stocks reigned supreme
for most of the period only to undergo a volatile environment during the last
three months of the period. While these sectors have experienced sharp
corrections, they remain favored sectors.

The Federal Reserve Board increased interest rates six times during the
twelve-month period resulting in the highest Fed funds rate since May 1995.
Normally, the tightening of the money supply would curtail consumer spending,
however, investors in stocks and equity funds seemed to be ignoring the Federal
Reserve Board's actions to insulate the economy from the threat of inflation.

Despite the recent volatility, the threat of inflation and the Federal Reserve's
response to it, investors remain positive about the U.S. economy and the
long-term potential of the U.S. markets. At Evergreen, we believe the economy is
still fundamentally strong and that the Federal Reserve Board will continue to
act aggressively to contain inflation. We remain cautiously optimistic about
continued growth in the markets.

Website Enhancements

Please visit our enhanced website, evergreen-funds.com, for more information
about Evergreen Funds. The site offers an array of helpful information including
an investment education center, interactive calculators to assist your
investment planning and general information about Evergreen Funds.

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 assist you in choosing the most appropriate for
your portfolio.

Thank you for your continued investment in Evergreen Funds.

Sincerely,

/s/ William M. Ennis

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

/s/ Dennis Ferro

Dennis Ferro
Chief Investment Officer
First Union National Bank
Capital Management Group

1
<PAGE>

EVERGREEN
Select Balanced Fund
Fund at a Glance as of June 30, 2000

--------------------------------------------------------------------------------
PORTFOLIO PROFILE
--------------------------------------------------------------------------------

Philosophy

The Evergreen Select Balanced Fund uses a systematic and disciplined investment
approach which provides exposure to both the equity and fixed income markets.
The basis of this approach is founded in the belief that stocks offer the
greatest long-term growth opportunities while bonds provide income and less risk
to principal.

Process

The Fund employs a blended approach to equity investing, utilizing companies
with both value and growth-oriented characteristics. Within the fixed income
component, portfolio performance is enhanced while seeking to control risk by
managing duration, sector allocation and security selection.

Benchmarks

Standard & Poor's 500 Index (S&P 500)
Lehman Brothers Government / Corporate
Bond Index (LBGCBI)

/1/ Past performance is no guarantee of future results. The investment return
and principal value of an investment will fluctuate so that investors' shares,
when redeemed, may be worth more or less than their original cost. The
performance of each class may vary based on differences in loads, fees and
expenses paid by the shareholders investing in each class. Performance includes
the reinvestment of income dividends and capital gain distributions.

Historical performance shown for Classes I and IS Shares reflects that of Class
Y Shares of Evergreen Balanced Fund II through 1/22/1998, the inception of Class
I Shares. Performance shown for Class IS Shares from 1/23/1998 through the
inception of Class IS Shares reflects that of Class I Shares. Performance prior
to inception of Class IS Shares does not include this class' 0.25% 12b-1 fees.
Class I Shares do not pay a 12b-1 fee. If fees were reflected, returns would
have been lower.

The advisor is waiving a portion of its advisory fee. Had the fee not been
waived, returns would have been lower.

--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/1/
--------------------------------------------------------------------------------

Portfolio Inception Date: 4/01/1991 Class I Class IS
Class Inception Date 1/22/1998 4/9/1998
Average Annual Returns
1 year 19.52% 19.23%
5 years 15.32% 15.24%
Since Portfolio Inception 13.12% 13.07%
12-month income dividends per share $0.46 $0.43
12-month capital gain distributions per share $0.53 $0.53

--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------

S & P 500
Select Consumer Price Composite Lehman Brothers
Balanced I Index - US Total Return Govt/Corp

4/1/91 1,000,000 1,000,000 1,000,000 1,000,000
6/30/91 1,007,031 1,007,407 997,713 1,015,111
6/30/92 1,151,338 1,038,519 1,131,538 1,158,927
6/30/93 1,299,567 1,069,630 1,285,744 1,311,296
6/30/94 1,324,091 1,096,296 1,303,834 1,292,145
6/30/95 1,531,520 1,129,630 1,643,758 1,457,047
6/30/96 1,754,028 1,160,741 2,071,132 1,524,888
6/30/97 2,080,384 1,187,407 2,789,795 1,642,993
6/30/98 2,473,500 1,207,407 3,631,237 1,827,387
6/30/99 2,615,091 1,231,111 4,458,061 1,878,140
6/30/00 3,125,352 1,269,016 4,781,001 1,958,554

Comparison of the change in value of a $1,000,000 investment in Evergreen Select
Balanced Fund Class I/1/, the S&P 500, the LBGCBI, and the Consumer Price Index
(CPI).

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

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

U.S. government guarantees apply only to the underlying securities of the Fund's
portfolio and not to the Fund's shares.

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

Investment objective is non-fundamental and may be changed without the vote of
the Fund's shareholders

All data is as of June 30, 2000 and subject to change

2
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EVERGREEN
Select Balanced Fund
Portfolio Manager Commentary

Portfolio Management

W. Shannon Reid, David M. Chow and Rollin C. Williams manage the Evergreen
Select Balanced Fund. The team uses a disciplined approach that seeks long-term
total return through capital appreciation, dividends and interest income.

[PICTURE] [PICTURE]
W. Shannon Reid, David M. Chow,
CFA CFA

[PICTURE]
Rollin C. Williams,
CFA

Performance

For the twelve-month period ended June 30, 2000, the Fund's Class I Shares,
posted a 19.52% return. This compared favorably to returns of 4.32% and 7.24%,
respectively, for the Fund's benchmarks, the Lehman Brothers
Government/Corporate Bond Index and the S&P 500, for the same period. The Fund's
solid performance can be attributed to the continued heavy weighting and strong
stock selection within the portfolio's technology component.

Portfolio
Characteristics
---------------
(as of 6/30/2000)

Total Net Assets $602,492,380
Number of Holdings 111
P/E Ratio 43.2x

Environment

The equity markets witnessed a strong domestic economy, an improving global
economic outlook and the absence of signs of inflation which drove stock market
indices upward through the first eight and one half months of the reporting
period. However, psychology turned negative in April due to a combination of
record valuation levels, signs of incipient inflation, rising interest rates and
an increasingly concerned Federal Reserve Board.

On the fixed-income side, the year ended June 30, 2000 was marked by a
substantial inverting of the yield curve. Two-year and thirty-year Treasury
bonds at June 30, 1999 had yields of 5.52% and 5.97% respectively. By June 30,
2000 the two-year had increased to 6.36%, up 0.84% while the thirty-year bond
actually declined to 5.90%, down 0.07%. In the first half of the year mortgages
were the best performing major asset class followed by corporates and then
Treasuries. In the second half Treasuries rebounded as the Federal Reserve Board
increased interest rates and began the Treasury buy back program to spend the
budget surplus. Any hint that a corporate issuer was having earnings problems
resulted in immediate widening of the yield spread and difficulty in selling
bonds.

3
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EVERGREEN
Select Balanced Fund
Portfolio Manager Commentary

Strategy

The Fund's equity management team operates under the philosophy that superior
investment returns can be achieved by owning a diversified portfolio of
established companies which will deliver superior and sustainable earnings
growth. Our investment process employs a combination of quantitative and
qualitative investment analysis that identifies companies with a history of
strong, stable earnings growth, strong current business fundamentals and rising
earnings expectations.

This methodology has led the equity team to a significant investment in the
information technology sector. Within this sector we continue to emphasize three
trends: technological advances in communications networks, the growth in demand
for enterprise information storage solutions and software solutions providers
for business-to-business electronic commerce.

Top 10 Equity Holdings
----------------------
(as a percentage of 6/30/2000 net assets)

General Electric Co. 3.7%
Pfizer, Inc. 3.3%
Cisco Systems, Inc. 2.9%
EMC Corp. 1.8%
Mercury Interactive Corp. 1.6%
Remedy Corp. 1.6%
Johnson & Johnson 1.5%
Sun Microsystems, Inc. 1.5%
Wal-Mart Stores, Inc. 1.5%
Microsoft Corp. 1.4%

Top 5 Sectors -- Equity
-----------------------
(as a percentage of 6/30/2000 net assets)

Information Technology 29.5%
Health Care 6.7%
Consumer Discretionary 4.8%
Industrials 4.3%
Consumer Staples 4.3%

On the fixed income portion of the portfolio, we continue to be proactive in
managing the portfolio's duration. Last quarter we lengthened the portfolio's
duration to 107.5% that of its respective benchmark. At that time, yields on the
long bond were approximately 6.63%. On April 26, we sold the long bond position
at a yield of 5.93% thus shortening the portfolio's duration. In late May, we
re-established the long duration in the portfolio by buying a bond at a 6.18%
yield. We will continue to actively manage the portfolio's duration.

Top 5 Bond Holdings
-------------------
(as a percentage of 6/30/2000 net assets)

Coupon Maturity
U.S. Treasury Bonds 7.63% 2/15/2007 2.9%
U.S. Treasury Bonds 8.13% 8/15/2021 2.8%
U.S. Treasury Notes 7.25% 5/15/2004 2.5%
U.S. Treasury Notes 6.25% 2/15/2003 2.4%
U.S. Treasury Bonds 6.25% 5/15/2030 2.3%

4
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EVERGREEN
Select Balanced Fund
Portfolio Manager Commentary

Top 5 Industries -- Bonds
-------------------------
(as a percentage of 6/30/2000 net assets)

U.S. Treasury Obligations 29.1%
Diversified Financials 3.2%
Banks 2.9%
Media 1.3%
Chemicals 0.9%

Outlook

The past several years have been extraordinary for growth stock equity
investors. Returns of this magnitude cannot continue indefinitely. Nevertheless,
we remain positive. Growth stock investing is ultimately about identifying
companies that will produce superior and sustainable earnings growth. Given the
revolutionary events taking place in the fields of information technology,
economics and global politics, we believe these opportunities are more abundant
than ever.

For both the year-to-date and the fiscal year, government bonds have proven to
be the clear return winner compared to corporate bonds. Currently, we feel that
corporates offer an attractive buying opportunity and are looking to increase
our corporate exposures.

5
<PAGE>

EVERGREEN
Select Core Equity Fund
Fund at a Glance as of June 30, 2000

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PORTFOLIO PROFILE
--------------------------------------------------------------------------------

Philosophy

Evergreen Select Core Equity Fund utilizes a diversified style of equity
management which capitalizes on opportunities in both value- and growth-oriented
stocks. In serving the investment needs of individual investors, the Fund
remains sensitive to tax implications.

Process

The Fund uses a bottom-up stock selection process, focusing on security
fundamentals rather than broad economic forecasts. The Fund is managed using a
team approach; investment managers locate attractive holdings using a unique
blend of quantitative and traditional fundamental analysis skills.

Benchmark

Standard & Poor's 500 Index (S&P 500)

Historical performance shown for Class IS Shares from 11/24/1997 to its
inception is based on the performance of Class I Shares and has not been
adjusted to reflect the effect of the 0.25% 12b-1 fee applicable to Class IS
Shares. Class I Shares pay no 12b-1 fee. If these fees had been reflected,
returns would have been lower. Prior to 11/24/1997, the returns for Classes I
and IS Shares are based on the Fund's predecessor common trust fund's (CTF)
performance, adjusted for estimated mutual fund expenses. The CTF was not
registered under the 1940 Act and was not subject to certain investment
restrictions. If the CTF had been registered, its performance might have been
adversely affected.

The advisor is waiving a portion of its advisory fee. Had the fee not been
waived, returns would have been lower.

--------------------------------------------------------------------------------
Performance and Returns /1/
--------------------------------------------------------------------------------

Portfolio Inception Date: 12/31/1981 Class I Class IS
Class Inception Date 11/24/1997 2/4/1998

Average Annual Returns
1 year 7.71% 7.45%
5 years 19.17% 18.88%
10 years 13.75% 13.48%
12-month income dividends per share $0.40 $0.19
12-month capital gain distributions per share $9.10 $9.10

--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------

[GRAPH]

Select Consumer Price S&P 500
Core Equity - 1 Index - US Composite Total Return

6/30/90 1,000,000 1,000,000 1,000,000
6/30/91 1,044,244 1,046,959 1,073,953
6/30/92 1,164,399 1,079,292 1,218,003
6/30/93 1,296,233 1,111,624 1,383,994
6/30/94 1,239,106 1,139,338 1,403,466
6/30/95 1,517,091 1,173,980 1,769,365
6/30/96 1,899,624 1,206,313 2,229,397
6/30/97 2,485,100 1,234,026 3,002,976
6/30/98 3,090,747 1,254,811 3,908,716
6/30/99 3,394,300 1,279,446 4,798,722
6/30/00 3,655,725 1,318,838 5,146,339

Comparison of the change in value of a $1,000,000 investment in Evergreen Select
Core Equity Fund Class I/1/, the S&P 500 and the Consumer Price Index (CPI).

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

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

Investment objective is non-fundamental and may be changed without the vote of
the Fund's shareholders.

All data is as of June 30, 2000 and subject to change.

6
<PAGE>

EVERGREEN
Select Core Equity Fund
Portfolio Manager Commentary

Portfolio Management

The Fund is managed by Mark C. Sipe, CFA and Hanspeter Giger, CFA who have over
33 years of combined investment experience. Their disciplined approach strives
for consistency of results and superior service.

[PHOTO] [PHOTO]

Mark C. Sipe, CFA Hanspeter Giger, CFA

Performance

For the twelve-month period ended June 30, 2000, the Select Core Equity Fund
Class I Shares returned 7.71%. This compared favorably to the 7.24% return for
the S&P 500 Index. The period just ended completed the first full fiscal year
subsequent to the restructuring of the Evergreen Select Core Equity Fund. During
the restructuring process, holdings in the portfolio were rebalanced to better
reflect the weightings of the largest stocks in the market in proportion to
their weightings in the S&P 500 Index.

Portfolio
Characteristics
---------------
(as of 6/30/2000)

Total Net Assets $2,538,595,264
Number of Holdings 123
P/E Ratio 35.4x

Environment

Stock market volatility during the fiscal period was readily apparent, as in two
of the four trailing quarters the S&P 500 Index generated negative returns.
Relatively high stock valuations, an extended economic cycle, and uncertainty
over the direction of interest rates and inflation combined to fuel the
variability in the market's performance. In this environment, the largest
capitalization stocks generally led the index, but at a diminished rate versus
prior periods. This was particularly true over the last six months, as the S&P
Midcap 400 and Smallcap 600 indices generated a substantial lead over the S&P
500. Within this shifting environment, the Fund's year-to-date performance
continued to exceed that of the benchmark, at -0.29% versus the S&P 500's -0.42%
despite its predominantly large-cap makeup.

Given the uncertainty surrounding the success of the Federal Reserve's moves to
slow the economy by raising the cost of borrowing to finance growth, the
market's complexion turned quite defensive during the final three months of the
Fund's fiscal year. This shift was evidenced by strong performance in the health
care, consumer staples, utilities, and energy sectors of the S&P 500 index. Fund
holdings in these sectors such as Bestfoods, Schering-Plough, Abbott
Laboratories, Coca-Cola and CMS Energy had exceptionally strong returns during
this period.

However, technology stocks continued their substantial lead over the broader
market on both a year-to-date and trailing twelve-month basis, up roughly 5% and
46%, respectively. As for the overall market, volatility increased. Questions of
valuation emerged, and for internet stocks in particular, questions surrounding
the long-term viability of many of its players took center stage. The tech
sector pulled back sharply, as

7
<PAGE>

EVERGREEN
Select Core Equity Fund
Portfolio Manager Commentary

evidenced by the NASDAQ composite index, which was down over 13% in the quarter
ending in June. Fortunately, the Fund's overall holdings in technology were
scaled back at the end of 1999. Positively, stock selection within the
technology sector and the Fund contributed substantially to performance over the
year-to-date and fiscal year periods.

Top Five Sectors
----------------
(as a percentage of 6/30/2000 net assets)

Information Technology 30.8%
Health Care 11.8%
Financials 11.3%
Industrials 9.6%
Consumer Discretionary 8.1%

Strategy

Overall, the performance of the Fund subsequent to its restructuring has been
particularly gratifying, especially in that it was achieved with less overall
variability than the S&P 500. The Fund's emphasis on stock selection should
continue to serve it well going forward. The application of rigorous
quantitative and qualitative equity research on a stock-to-stock basis will
continue to be emphasized in this ever-changing environment.

Top 10 Holdings
---------------
(as a percentage of 6/30/2000 net assets)

General Electric Co. 6.8%
Cisco Systems, Inc. 6.0%
Intel Corp. 4.6%
Microsoft Corp. 3.6%
Oracle Systems Corp. 2.7%
International Business Machines Corp. 2.6%
Pfizer, Inc. 2.6%
Coca Cola Co. 1.9%
Dell Computer Corp. 1.8%
WorldCom, Inc. 1.7%

Outlook

Finally, in keeping with a secondary goal to minimize the tax implications to
holders of Fund shares, net long-term gains accumulated for the fiscal period
approximate just over 3% of the Fund's total assets. This has been achieved
through tactical moves to harvest losses where they were deemed appropriate, and
to otherwise minimize the taxable gains generated by individual stock trades.
Although the Fund's gains distribution in December may be higher than the
year-to-date number, we will strive to keep the taxable gains as low as
possible.

8
<PAGE>

EVERGREEN
Select Diversified Value Fund
Fund at a Glance as of June 30, 2000

--------------------------------------------------------------------------------
PORTFOLIO PROFILE
--------------------------------------------------------------------------------

Philosophy

The Evergreen Select Diversified Value Fund is a core fund with an emphasis on
traditional value, utilizing fundamental analysis to determine if a stock is
selling at a reasonable valuation level. The Fund seeks to capture the best
opportunities in a value universe by emphasizing securities with perceived
intrinsic value above current market levels due to temporary or anticipated
problems.

Process

Primarily, the Fund invests in undervalued companies using a "bottom-up"
approach that concentrates on analyzing security fundamentals rather than broad
economic forecasts. The portfolio management team strives to produce a portfolio
that best controls risk and balances a risk/reward relationship.

Benchmark

Standard & Poor's 500 Index (S&P 500)

Historical performance shown for Classes I and IS Shares reflects that of Class
Y Shares of Evergreen Value Fund through 1/22/1998, the inception of Class I
Shares. Performance shown for Class IS Shares from 1/23/1998 through the
inception of Class IS Shares reflects that of Class I Shares. Performance prior
to inception of Class IS Shares does not include this class' 0.25% 12b-1 fees.
Class I Shares do not pay a 12b-1 fee. If fees were reflected, returns would
have been lower.

The advisor is waiving a portion of its advisory fee. Had the fee not been
waived, returns would have been lower.

--------------------------------------------------------------------------------
Performance and Returns /1/
--------------------------------------------------------------------------------

Portfolio Inception Date: 1/03/1991 Class I Class IS
Class Inception Date 1/22/1998 3/31/1998
Average Annual Returns
1 year 6.78% 6.51%
5 years 16.41% 15.98%
Since Portfolio Inception 15.48% 15.25%
12-month income dividends per share $0.15 $0.08
12-month capital gain distributions per share $1.08 $1.08

--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------

Select Consumer Price S & P 500 Composite
Diversified Value Index - US Total Return

1/3/91 1,000,000 1,000,000 1,000,000
6/30/91 1,164,803 1,010,401 1,094,962
6/30/92 1,292,500 1,041,605 1,241,831
6/30/93 1,448,175 1,072,808 1,411,069
6/30/94 1,504,453 1,099,554 1,430,922
6/30/95 1,832,082 1,132,987 1,803,979
6/30/96 2,169,868 1,164,190 2,273,011
6/30/97 2,769,947 1,190,936 3,061,723
6/30/98 3,364,717 1,210,996 3,985,182
6/30/99 3,668,142 1,234,770 4,892,599
6/30/00 3,916,512 1,272,787 5,247,017

Comparison of the change in value of a $1,000,000 investment in Evergreen Select
Diversified Value Fund Class I/1/, the S&P 500 and the Consumer Price Index
(CPI).

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

Investment objective is non-fundamental and may be changed without the vote of
the Fund's shareholders.

All data is as of June 30, 2000 and subject to change.

9
<PAGE>

EVERGREEN
Select Diversified Value Fund
Portfolio Manager Commentary

Portfolio Management

Eric M. Teal is manager of the Evergreen Select Diversified Value Fund. He
employs rigorous fundamental analysis combined with a disciplined quantitative
approach to seek superior results and adherence to risk/reward objectives.

[PHOTO]

Performance

For the twelve-month period ended June 30, 2000, the Evergreen Select
Diversified Value Fund's Class I Shares 6.78% return narrowly trailed that of
its benchmark, the S&P 500 Index, which returned 7.24% for the same period.

Portfolio
Characteristics
---------------
(as of 6/30/2000)

Total Net Assets $482,844,364
Number of Holdings 134
P/E Ratio 30.90x

Environment

During the later part of this fiscal period the Fund experienced a challenging
equity environment due to the historically high valuations within the equity
markets and tightening monetary policies. We witnessed technology companies
pulling back in late March and early April washing out some of the valuation
excess in the markets. Currently, we are continuing to balance the portfolio
with "new" and "old" economy issues. Going forward we expect a broader market
rally at the conclusion of Fed tightening and are currently emphasizing more
traditional sectors, such as utilities and energy.

Top 5 Sectors
-------------
(as a percentage of 6/30/2000 net assets)

Information Technology 26.8%
Financials 14.6%
Health Care 12.6%
Consumer Discretionary 9.9%
Industrials 9.6%

Strategy

During this fiscal period, the best strategy the Fund implemented was favorable
stock selection within the energy sector. Within this sector the Fund witnessed
an increase of 21% for the period versus the 4% of the S&P 500's energy sector.
Also proving positive for the Fund was an overweighing emphasis placed on
exploration and production companies; companies like Anadarko Petroleum and
Apache, which were up 35% and 51%, respectively. The Fund's performance was also
enhanced by stock selections within the health care sectors; this particular
group raised an average of

10
<PAGE>

EVERGREEN
Select Diversified Value Fund
Portfolio Manager Commentary

28% versus the 14% increase of the indices' health care sector. The portfolio
emphasized specialty pharmaceuticals and generic drug companies; particularly
enhancing performance within this sector was Teva Pharmaceuticals, which was up
127% for this period. In the technology sector the Fund placed emphasis on fiber
optic companies including Corning and ADC Telecom, up 286% and 268%,
respectively.

Top 10 Holdings
---------------
(as a percentage of 6/30/2000 net assets)

Microsoft Corp. 3.6%
General Electric Co. 3.6%
Pfizer, Inc. 3.5%
Cisco Systems, Inc. 2.6%
Citigroup, Inc. 2.6%
Anadarko Petroleum Corp. 2.3%
Texas Instruments, Inc. 2.3%
American International Group, Inc. 2.2%
Oracle Systems Corp. 2.0%
Goldman Sachs Group, Inc. 1.8%

Outlook

In July 2000, the Evergreen Select Diversified Value Fund was merged into the
Evergreen Stock Selector Fund.

11
<PAGE>

EVERGREEN
Select Large Cap Blend Fund
Fund at a Glance as of June 30, 2000

--------------------------------------------------------------------------------
PORTFOLIO PROFILE
--------------------------------------------------------------------------------

Philosophy

Evergreen Select Large Cap Blend Fund invests in large and mid-sized U.S.
companies, blending those that display both value and growth-oriented
characteristics. This philosophy holds that value and growth stocks tend to be
counter-cyclical, outperforming the broad market at different times.
Diversification between the two approaches tends to provide less volatile
investment results over time.

Process

Research and stock selection focus on companies of sound financial quality which
have strong management teams and maintain competitive leadership positions
within their respective industries. These companies are identified using a
fundamental, bottom-up stock selection process which is research-intensive.

Benchmarks

Russell 1000 Growth Index
(Russell 1000 Growth)
Standard and Poor's 500 Index
(S&P500)

The advisor is waiving a portion of its advisory fee. Had the fee not been
waived, returns would have been lower.

--------------------------------------------------------------------------------
Performance and Returns/1/
--------------------------------------------------------------------------------

Portfolio Inception Date: 12/31/1993 Class I Class IS
Class Inception Date 11/24/1997 3/12/1998
Average Annual Returns
1 year 4.70% 4.45%
5 years 18.12% 17.84%
Since Portfolio Inception 17.33% 17.04%
12-month income dividends per share $0.23 $0.14
12-month capital gain distributions per share $6.51 $6.51

--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------

Select Large Consumer Price S & P 500 Composite Russell 1000
Cap Blend I Index - US Total Return Growth

12/31/93 1,000,000 1,000,000 1,000,000 1,000,000
6/30/94 935,368 1,015,089 966,128 946,166
6/30/95 1,229,707 1,045,953 1,218,008 1,234,875
6/30/96 1,472,576 1,074,760 1,534,688 1,578,309
6/30/97 1,983,112 1,099,451 2,067,210 2,072,910
6/30/98 2,526,463 1,117,970 2,690,709 2,723,508
6/30/99 2,706,904 1,139,918 3,303,378 3,466,204
6/30/00 2,834,405 1,175,014 3,542,673 4,355,115

Comparison of the change in value of a $1,000,000 investment in Evergreen Select
Large Cap Blend Fund Class I/1/, the Russell 1000 Growth Index (Russell 1000
Growth), the Standard & Poor's 500 Index (S&P 500) and the Consumer Price Index
(CPI).

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

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

Investment objective is non-fundamental and may be changed without the vote of
the Fund's shareholders.

All data is as of June 30, 2000 and subject to change.

12
<PAGE>

EVERGREEN
Select Large Cap Blend Fund
Portfolio Manager Commentary

Portfolio Management

The Evergreen Select Large Cap Blend Fund is managed by Timothy M. Stevenson and
Eric M. Teal. The team-oriented approach incorporates multiple perspectives that
attempt to identify the most attractive opportunities in the market and ensures
adherence to the style-specific objectives.

[PHOTOS]

Performance

For the twelve-month period ended June 30, 2000, the Fund's Class I Shares
returned 4.70% trailing that of the S&P 500 Index and the Russell 1000 Growth,
which returned 7.24% and 25.66%, respectively for the same period.

Portfolio
Characteristics
---------------
(as of 6/30/2000)

Total Net Assets $277,328,233
Number of Holdings 70
P/E Ratio 36.1x

Environment

During the beginning of this fiscal year we witnessed negative returns,
primarily a result of the well-publicized Y2K risk, higher crude oil prices and
rising interest rates that all combined to concern investors. As we moved
through the year, investors began to look past the negative factors that
threatened the market's continued growth and they began to focus on what the
expert's have dubbed "Economic Nirvana"--strong economic growth, benign
inflation and low unemployment, which continued to the end of this fiscal
period. These ideal conditions along with strong earnings reports and strong
money flows pushed the equity markets to new highs.

Top 5 Sectors
-------------
(as a percentage of 6/30/2000 net assets)

Information Technology 31.9%
Financials 15.0%
Health Care 13.1%
Industrials 8.0%
Consumer Discretionary 7.8%

Strategy

During the first half of the fiscal year, the Fund performed well, but trailed
the S&P 500 Index due to earnings disappointments from Waste Management and Bank
One. A large position in Bank of America also reduced the Fund's total return as
rising interest rates penalized most financial services companies. Within the
portfolio's financial weighting, we reduced exposure to insurance companies.
Lastly, speculation surrounding accounting issues at Tyco International resulted
in a pull back on one of Wall Street's favorite stocks.

13
<PAGE>

EVERGREEN
Select Large Cap Blend Fund
Portfolio Manager Commentary

Performance in the second half of the fiscal year improved dramatically. Over
the past six months the Fund returned 1.13% compared to the S&P 500, which was
down -0.42%. The largest relative contributors to performance were consumer
staples, health care and telecommunication services. During this last quarter,
the market witnessed a rotation back into consumer non-cyclical stocks. In
particular, drug and food stocks were strong performers. In consumer staples,
the Fund's Nabisco holdings benefited from the $55.00 acquisition offer.

Top 10 Holdings
---------------
(as a percentage of 6/30/2000 net assets)

Pfizer, Inc. 6.3%
EMC Corp. 5.9%
General Electric Co. 4.9%
Cisco Systems, Inc. 4.6%
Microsoft Corp. 4.1%
Exxon Mobil Corp. 3.5%
Citigroup, Inc. 3.5%
WorldCom, Inc. 3.4%
Intel Corp. 2.9%
Time Warner, Inc. 2.5%

Outlook

In July 2000, the Evergreen Select Large Cap Blend Fund was merged into the
Evergreen Stock Selector Fund.

14
<PAGE>

EVERGREEN
Select Secular Growth Fund
Fund at a Glance as of June 30, 2000

--------------------------------------------------------------------------------
PORTFOLIO PROFILE
--------------------------------------------------------------------------------

Philosophy

The Evergreen Select Secular Growth Fund seeks to identify companies that are
positioned to capitalize upon favorable secular trends within the U.S. economy.
We accomplish this by using highly focused fundamental research along with
quantitative tools to select high quality, large cap growth companies that
exhibit consistent and accelerating earnings growth.

Process

Stephen Dalton and his team of dedicated analysts utilize a disciplined
investment process in order to construct a portfolio of large cap, high quality,
growth-oriented companies:

. Ideas generated by the Secular Growth Team analysts

. Daily meetings to discuss buy/sell candidates, establish priorities
and discuss the market

. Analyst recommendations are made to the team; team leaders make final
decisions

. Quantitative tools are used to verify or challenge recommendations

Benchmarks

Standard & Poor's 500 Index (S&P 500)
Russell 1000 Growth Index
(Russell 1000 Growth)

Historical performance shown for Classes I and IS Shares prior to 7/12/1999 is
based on the Fund's predecessor common trust fund's (CTF) performance, adjusted
for estimated mutual fund expenses including the 0.25% 12b-1 fee applicable to
the Class IS Shares. The CTF was not registered under the 1940 Act and was not
subject to certain investment restrictions. If the CTF had been registered, its
performance might have been adversely affected.

The advisor is waiving a portion of its advisory fee. Had the fee not been
waived, returns would have been lower.

--------------------------------------------------------------------------------
Performance and Returns/1/
--------------------------------------------------------------------------------

Portfolio Inception Date: 12/31/1994 Class I Class IS
Class Inception Date 2/26/1999 2/26/1999
Average Annual Returns
1 year 50.60% 50.19%
5 years 34.34% 34.00%
Since Portfolio Inception 35.20% 34.86%
12-month capital gain distributions per share $3.27 $3.27

--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------

Select Secular Consumer Price S & P 500 Composite Russell 1000
Growth I Index - US Total Return Growth

12/31/94 1,000,000 1,000,000 1,000,000 1,000,000
6/30/95 1,197,533 1,018,704 1,202,128 1,202,924
6/30/96 1,611,267 1,046,760 1,514,679 1,537,472
6/30/97 1,948,300 1,070,808 2,040,258 2,019,276
6/30/98 2,727,039 1,088,844 2,655,629 2,653,042
6/30/99 3,482,847 1,110,220 3,260,309 3,376,522
6/30/00 5,245,852 1,144,403 3,496,485 4,242,433

Comparison of the change in value of a $1,000,000 investment in Evergreen Select
Secular Growth Fund Class I/1/, the Russell 1000 Growth Index (Russell 1000
Growth), the Standard and Poor's 500 Index (S&P 500) and the Consumer Price
Index (CPI).

Some of the returns shown reflect a period of unusually favorable market
conditions, which may be difficult to repeat. A portion of the returns may be
due to investments in IPO's, private placements and/or leveraging investment
techniques.

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

Investment objective is non-fundamental and may be changed without the vote of
the Fund's shareholders.

All data is as of June 30, 2000 and subject to change.

15
<PAGE>

EVERGREEN
Select Secular Growth Fund
Portfolio Manager Commentary

Portfolio Management

Stephen M. Dalton, CFA

Stephen Dalton is the portfolio manager of the Evergreen Select Secular Growth
Fund and has over 15 years of investment management and research experience,
managing growth and balanced portfolios. In addition, he has covered the health
care, technology, retail, media and entertainment industries.

Performance

For the twelve-month period ended June 30, 2000, the Fund's Class I shares,
returned 50.60%, outperforming the 25.66% and 7.24% returns for the Russell 1000
Growth and the S&P 500 Indices, respectively.

Portfolio
Characteristics
---------------
(as of 6/30/2000)

Total Net Assets $918,760,259
Number of Holdings 63
P/E Ratio 30.0x

Environment

Stock prices have been restrained by a combination of rising interest rates and
fears of unsustainable valuation for those stocks with highly visible growth
versus those without. A slow motion rotation among sectors has ensued. This
cycle may be broken by a deceleration in the growth of the U.S. economy. As the
economy appears to be responding to the high rates by slowing, investors are
placing a lessened emphasis on valuation, and a greater focus on highly visible
and accelerating earnings growth. We believe this should make for a better
environment for technology stocks, in which the Fund holds a significant
position, though less than the 52% representation in the benchmark index.
Assuming interest rates remain stable over the next twelve months, the political
environment remaining predictable, and despite the 100% certainty of a new
president in the White House, financial stocks--particularly those exploiting
one of the two major trends (globalization of corporate finance and demographic
shifts affecting the financial services industry)--should also perform well. The
Fund is over-weighted to this sector relative to the benchmark.

Top 5 Sectors
-------------
(as a percentage of 6/30/2000 net assets)

Information Technology 45.6%
Financials 12.4%
Consumer Discretionary 10.2%
Consumer Staples 7.3%
Health Care 6.9%

Strategy

The Fund experienced a sharp correction early in the year, followed by a robust
six-month period of superior performance, and yet another correction in the
final quarter of the year ended June 30, 2000. These results were powered by the
accurate identification of a handful of highly visible secular trends, and
outstanding stock selection.

Two of the key trends we reference are the surging demand for both high-speed
access to the internet and bandwidth. Among our best performers for the year,

16
<PAGE>

EVERGREEN
Select Secular Growth Fund
Portfolio Manager Commentary

which are exploiting these two trends, are Cisco Systems, JDS Uniphase and
Juniper Networks. Other secular themes that are well represented in the Fund are
exploding demand for data storage, and internet infrastructure enabling
software. Key names we own in these areas are EMC Corp, Veritas, Brocade
Communications, Verisign and Inktomi.

We also held lower than benchmark weightings in health care and consumer staples
throughout the year. These were most helpful for the first half of the fiscal
year for the Fund, when their respective sector returns were among the weakest
sectors in the benchmark index.

Finally, two new trends were identified late in the fiscal year. They are
changing demographic tastes and wireless access to the internet. Pepsi and
Anheuser-Busch reflect the former and Nokia and Research In Motion the latter.

Top 10 Holdings
---------------
(as a percentage of 6/30/2000 net assets)

Vitria Technology 2.4%
Juniper Networks, Inc. 2.4%
Metromedia Fiber Network, Inc., Class A 2.3%
Applied Micro Circuits Corp. 2.1%
VeriSign, Inc. 2.1%
Broadcom Corp. 2.1%
Colgate-Palmolive Co. 2.1%
Brocade Communications Systems, Inc. 2.1%
Viacom, Inc., Class B 2.1%
Oracle Systems Corp. 2.0%

Outlook

Looking ahead, we anticipate continued quiescent inflation. Nevertheless, we
anticipate persistent strong performance from the internet infrastructure and
data storage in technology; we remain bullish on the Fund's positioning. Areas
in which we remain especially bullish are high-speed access to the internet,
internet infrastructure software, web hosting services, and telecom equipment
and services. We also maintain a favorable outlook for the financial sector, an
area exploiting both the demographic influence of higher levels of public
investing and the globalization of corporate financial services.

17
<PAGE>

EVERGREEN
Select Small Cap Growth Fund
Fund at a Glance as of June 30, 2000

--------------------------------------------------------------------------------
PORTFOLIO PROFILE
--------------------------------------------------------------------------------

Philosophy

Evergreen Select Small Cap Growth Fund seeks to provide shareholders with
long-term growth of capital by investing in small company stocks. We believe
that the risk associated with smaller company stocks can be managed effectively
by diversification and careful attention to valuation.

Process

The Fund manager uses a fundamental, bottom-up stock selection process, which is
research-intensive. The Fund generally invests in stocks of companies which have
market capitalization of $1 billion or less and above average long-term growth
rates. Our research process identifies buying opportunities in small company
stocks of high-quality companies with a competitive advantage, growth-oriented,
and reasonably valued.

Benchmarks

Russell 2000 Growth Index
(Russell 2000 Growth)
Russell 2000 Index (Russell 2000)

--------------------------------------------------------------------------------
Performance and Returns /1/
--------------------------------------------------------------------------------

Portfolio Inception Date: 12/28/1995 Class I
Class Inception Date 12/28/1995
Average Annual Returns
1 year 66.74%
Since Portfolio Inception 21.44%

--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------

Select Small Consumer Price
Cap Growth I Index - US Russell 2000 Growth

12/28/95 1,000,000 1,000,000 1,000,000
6/30/96 1,148,043 1,020,847 1,119,229
6/30/97 1,231,918 1,044,300 1,170,760
6/30/98 1,381,194 1,061,889 1,325,311
6/30/99 1,439,487 1,082,736 1,435,321
6/30/00 2,399,856 1,116,072 1,842,845

Comparison of the change in value of a $1,000,000 investment in Evergreen Select
Small Cap Growth Fund Class I/1/, the Russell 2000 Growth, the Russell 2000 and
the Consumer Price Index (CPI).

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

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

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

Investment objective is non-fundamental and may be changed without the vote of
the Fund's shareholders.

All data is as of June 30, 2000 and subject to change.

18
<PAGE>

EVERGREEN
Select Small Cap Growth Fund
Portfolio Manager Commentary

Portfolio Management

The Evergreen Select Small Cap Growth Fund is managed by Thomas L. Holman. Mr.
Holman is a member of the Small Cap Growth Team at Evergreen Investment
Management Co., where he manages the Fund and separately managed, small-cap
growth accounts. His research responsibilities are focused on telecommunication
service companies. Prior to joining Evergreen in 1997, Mr. Holman was a
portfolio manager and securities analyst at Invista Capital Management. He
developed quantitative models and had co-management responsibility for several
small- and mid-cap portfolios.

[PHOTO]

Performance

Evergreen Select Small Cap Growth Fund continued to perform exceptionally well
for the twelve-month period ended June 30, 2000. The Fund's Class I shares had a
return of 66.74%, compared to a 28.39% return for the benchmark Russell 2000
Growth Index and the 14.32% return for the Russell 2000 Index.

Most of the returns were realized during the fourth calendar quarter of 1999 and
the first quarter of 2000, as the Fund's concentrations in technology, both
hardware and software companies, helped drive returns. The Fund's positions in
biotechnology and energy companies also supported performance.

Top 5 Sectors
-------------
(as a percentage of 6/30/2000 net assets)

Information Technology 46.4%
Health Care 15.6%
Industrials 10.8%
Financials 6.9%
Energy 6.5%

Environment

New economy technology and biotechnology companies led the small company stock
market during the twelve-month period ended June 30, 2000, while old-economy
financial services and consumer companies suffered through a disappointing year.
As world oil prices rose, energy-related companies, including companies involved
in exploration and production, also staged a strong rally.

The domestic small cap stock market benefited in late 1999 and early 2000 from a
substantial increase in money flows, as investors poured assets into small
company stock and aggressive growth strategies, especially those emphasizing
technology. This resulted in explosive performance for technology and
biotechnology. This burst in performance lasted until early March, when
investors lost their enthusiasm because of the high valuations in these sectors.
The prices of many technology and biotechnology stocks tumbled during the final
months of the fiscal year.

Portfolio
Characteristics
---------------
(as of 6/30/2000)

Total Net Assets $159,444,258
Number of Holdings 74
P/E Ratio 16.9x

19
<PAGE>

EVERGREEN
Select Small Cap Growth Fund
Portfolio Manager Commentary

Strategy

During the first part of the year, we maintained very high weightings in
technology, with as much as 37% of net assets invested in hardware companies and
another 21% invested in software companies. By the end of December 1999, we
became concerned about the high valuations of technology stocks, and we began to
reduce the total hardware and software positions to about 35% of net assets.
Within technology, we concentrated on those stocks with reasonable support for
valuations. We emphasized internet infrastructure companies rather than specific
companies dependent on the success of their own websites. We also invested in
companies with the potential to benefit from the growth in hand-held computing
and communications devices. As technology stock prices tumbled in a general
correction in the second calendar quarter of 2000, we opportunistically invested
back into those companies with justifiable stock valuations and with favorable
long-term prospects. At the same time, we increased our emphasis on
biotechnology companies, which became increasingly attractive after public
announcements about the complete sequencing of the human genome. We also
increased our emphasis on energy companies, especially oil service companies,
that could benefit from rising oil prices throughout the world.

Several successful investments illustrate the type of commitments we made during
the period.

Three-Five Systems is a good example of a company that can take advantage of the
growth in hand-held computing and communications devices. This company produces
micro-video display screens for the devices, opening up the possibility of
displaying full color graphics and motion on a screen just one-inch-by-one-inch
in size. We started buying Three-Five Systems in September 1999 at $19 per
share. It closed the fiscal year on June 30 at $57 a share.

Kopin was another interesting company producing equipment for handsets. Kopin
makes semi-conductors for communications systems and also has developed a
micro-display similar to that of Three-Five Systems. We purchased Kopin in
October at less than $32 a share. It closed the fiscal year at $70.

Other successful investments related to the growth in handsets included Sandisk,
which manufactures memory discs for small devices, and M Systems, which produces
imbedded flash memory systems. We purchased Sandisk in June 1999 at $23 a share.
It closed the fiscal year at $61 a year. We purchased M Systems in April 2000 at
$43 a share. It ended the fiscal year at $77 a share on June 30.

One of our leading biotechnology investments was Medarex, which has developed a
system by which anti-bodies, which potentially can fight diseases in humans, are
grown in cells of mice. We invested in the company in January 2000 at $41 per
share. The closing price on June 30 was $84 a share.

Pharmacopia was another leading biotechnology investment, which we also
purchased in January 2000 at a price of $26 per share. It ended the fiscal year
with a stock price of $46. Pharmacopia has developed a process to help other
biotechnology companies accelerate the pace of their drug development.

In the energy industry, one of the leading investments was in Pride
International, an offshore contract drilling company that has grown to operate
deepwater drilling rigs in more than 20 companies. We invested in Pride in
August 1999 at $14 a share. Its price on June 30 was $23 a share.

20
<PAGE>

EVERGREEN
Select Small Cap Growth Fund
Portfolio Manager Commentary

Not all the portfolio was invested in technology, biotechnology and energy,
however, despite our emphasis in these sectors. We found attractive companies
outside these areas. Two good examples are Apollo Group and Devry, both of which
operate adult education and technical training programs at multiple campuses.
Both have consistent earnings growth, strong reputations in their markets and
stock prices that became very undervalued during the technology rally.

Top 10 Holdings
---------------
(as a percentage of 6/30/2000 net assets)

Devry, Inc. 2.6%
--------------------------------------------------------------------------------
Audio Codes, Ltd. 2.4%
--------------------------------------------------------------------------------
Apollo Group, Inc. 2.2%
--------------------------------------------------------------------------------
Tollgrade Communications, Inc. 2.1%
--------------------------------------------------------------------------------
Ancor Communications, Inc. 2.1%
--------------------------------------------------------------------------------
Cubist Pharmaceuticals, Inc. 2.0%
--------------------------------------------------------------------------------
OM Group, Inc. 2.0%
--------------------------------------------------------------------------------
West Teleservices Corp. 1.9%
--------------------------------------------------------------------------------
Universal Electronics, Inc. 1.8%
--------------------------------------------------------------------------------
TCF Financial Corp. 1.8%
--------------------------------------------------------------------------------

Outlook

A dichotomy has developed in the small cap stock market in the United States. On
one side of the market, technology and biotechnology company stocks have risen
to historically high valuations. Many of the companies are over-valued by any
measure, although it still is possible to find selected opportunities. On the
other side are non-technology companies, whose stock prices recently have been
at levels that are at historically low valuations. Despite these reasonable
valuations, these non-technology stocks have not attracted much attention as
investors still focus on the growth potential of emerging technology.

We believe if technology and biotechnology stocks do fade, the small cap stock
market offers many attractive opportunities for investing in companies with good
earnings growth and attractive stock valuations. Some of these stocks did
perform well briefly in March and April this year, but their rally was
short-lived.

One factor that could affect small company stocks is the impact of the Federal
Reserve Board's increases in short-term interest rates. Some small companies
could find their access to capital reduced because of rising rates. We have
looked for investments in well capitalized companies which have the ability to
finance their growth from their own cash flow or have sufficient cash reserves
to make it to positive free cash flow. At the same time, it appears the Federal
Reserve Board's policy of raising rates to limit growth and avoid inflation may
be successfully implemented without causing inflation. If this occurs, we may be
approaching the end of the cycle of interest rate increases, which would be
favorable for small cap stocks in general.

21
<PAGE>

EVERGREEN
Select Small Company Value Fund
Fund at a Glance as of June 30, 2000

--------------------------------------------------------------------------------
PORTFOLIO PROFILE
--------------------------------------------------------------------------------

Philosophy

The Evergreen Select Small Company Value Fund seeks capital appreciation by
investing in little-known and relatively small companies. The management team
seeks to identify small companies that are favorably priced and have both
entrepreneurial managements and catalysts for growth. The investment discipline
pays special attention to valuations and diversification by industry and company
to reduce the volatility associated with small cap stocks.

Process

The Fund's management team uses an intensive research process to assemble a
diversified stock portfolio of small companies that:

. Are potential merger and acquisition candidates;

. Have promising new products that can cause a dramatic change in
earnings;

. Are "value-timing" candidates because, while their stock may be
temporarily out of favor, they offer the potential of good, long-term
appreciation;

. Can benefit from re-structuring programs of management

Benchmark

Russell 2000 Value Index
(Russell 2000 Value)

--------------------------------------------------------------------------------
Performance and Returns/1/
--------------------------------------------------------------------------------

Portfolio Inception Date: 12/23/1997 Class I Class IS
Class Inception Date 12/23/1997 12/31/1998

Average Annual Returns
1 year -1.89% -1.86%
Since Portfolio Inception -4.65% -5.03%
12-month income dividends per share $0.04 $0.03

--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------

[GRAPH]

Select Small
Company Value I Consumer Price Index - US Russell 2000 Value

12/23/97 1,000,000 1,000,000 1,000,000
6/30/98 1,012,815 1,010,539 1,044,373
12/31/98 888,824 1,016,119 935,505
6/30/99 904,090 1,030,378 984,678
12/31/99 859,531 1,043,397 921,555
6/30/00 887,066 1,062,102 975,409

Comparison of the change in value of a $1,000,000 investment in Evergreen Select
Small Company Value Fund Class I/1/, the Russell 2000 Value and the Consumer
Price Index (CPI).

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

Historical performance shown for Class IS Shares prior to its inception is based
on the performance of Class I Shares and has not been adjusted to reflect the
effect of the 0.25% 12b-1 fee applicable to Class IS Shares. Class I Shares pays
no 12b-1 fee. If these fees had been reflected returns would have been lower.

The advisor is waiving a portion of its advisory fee. Had the fee not been
waived, returns would have been lower.

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

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

Investment objective is non-fundamental and may be changed without the vote of
the Fund's shareholders.

All data is as of June 30, 2000 and subject to change.

22
<PAGE>

EVERGREEN
Select Small Company Value Fund
Portfolio Manager Commentary

Portfolio Management

The Evergreen Select Small Company Value Fund has been lead-managed by Jordan
Alexander, CFA since January 2000. Mr. Alexander joined Evergreen Asset
Management Corp. in 1998, and is now a Vice President of the firm. Earlier in
his career, he was a healthcare associate analyst at PaineWebber Incorporated
and a senior financial analyst and auditor at Arthur Andersen LLP.

[PHOTO OF JORDAN ALEXANDER, CFA]

Jordan Alexander, CFA

Performance

Over the full twelve-month fiscal year, the Evergreen Select Small Company Value
Fund performed consistently with relevant benchmarks. The Fund's Class I Shares
had a return of -1.89% for the twelve-month period ended June 30, 2000, while
the Russell 2000 Value Index, the Fund's benchmark, returned -0.94%. Relative
performance improved markedly during the final quarter of the fiscal year when
the Fund generated a return of 5.30%, while the Russell 2000 Value Index
returned 1.95%.

Portfolio
Characteristics
---------------
(as of 6/30/2000)

Total Net Assets $68,021,431
Number of Holdings 103
P/E Ratio 21.3x

Strategy

In early 2000, the Fund's portfolio was restructured to include an increased
weighting in health care, technology and energy, and a decreased emphasis in
consumer cyclicals and financial services stocks. The increased weightings in
health care and technology were major factors in the strong improvement during
the final three months of the fiscal year, while the increased emphasis on
energy companies also contributed to the out-performance.

Stock selections in health care and technology were the greatest individual
contributors to the Fund's returns for the twelve months period ended June 30,
2000.

Leading performers in the health care sector included Arthrocare, Alpharma and
Jones Pharma. Arthrocare, which manufactures equipment used in arthroscopic
surgery, rose 159.8% for the twelve-month period. Alpharma, a generic
pharmaceutical company, also contributed to the favorable performance with a
gain of 75.0% in the period. Alpharma produces generic pharmaceutical products
for the U.S. and European markets, and also operates animal health and fine
chemicals businesses. The company announced the acquisition of an animal feed
additive business that is expected to contribute to accelerated earnings growth
next year. The stock of Jones Pharma, a specialty pharmaceutical company focused
in endocrinology and emergency care, appreciated 128.2% for the twelve-month
period on strong earnings growth.

In technology, the leading performers were Hadco and CSG Systems. Hadco, a
printed circuit-board manufacturer, appreciated 182.4% for the twelve months.
Sanmina, a contract manufacturer, acquired the company. CSG Systems, which
provides customer care and billing systems for the communications market, gained
114.1% for the twelve months.

<PAGE>

EVERGREEN
Select Small Company Value Fund
Portfolio Manager Commentary

Top 5 Sectors
-------------
(as a percentage of 6/30/2000 net assets)

Financials 20.0%
--------------------------------------------------------------------------------
Health Care 17.8%
--------------------------------------------------------------------------------
Information Technology 17.3%
--------------------------------------------------------------------------------
Consumer Discretionary 10.4%
--------------------------------------------------------------------------------
Energy 9.4%
--------------------------------------------------------------------------------

Top 10 Holdings
---------------
(as a percentage of 6/30/2000 net assets)

AmeriSource Health Corp., Class A 2.4%
--------------------------------------------------------------------------------
Civic Bancorp 2.3%
--------------------------------------------------------------------------------
Eastern Enterprises 2.3%
--------------------------------------------------------------------------------
Alpharma, Inc., Class A 2.3%
--------------------------------------------------------------------------------
Michael Foods, Inc. 2.2%
--------------------------------------------------------------------------------
MDU Resources Group, Inc. 1.9%
--------------------------------------------------------------------------------
Medicis Pharmaceutical Corp., Class A 1.9%
--------------------------------------------------------------------------------
Mid-State Bancshares 1.8%
--------------------------------------------------------------------------------
Alza Corp. 1.8%
--------------------------------------------------------------------------------
Helix Technology Corp. 1.8%
--------------------------------------------------------------------------------

Outlook

We continue to have a favorable outlook for the stocks in the portfolio. We have
found many good companies selling at reasonable stock valuations at a time when
there is evidence of renewed investor interest in small-cap value stocks.
Relative to large-cap companies, small-caps trade at more attractive valuations
and we believe small-caps can generate stronger earnings growth this year. The
reasonable prices of these stocks, combined with continued stock buybacks and
merger-and-acquisition activity, increases the potential for strong small-cap
performance.

Indications that the Federal Reserve Board may be approaching the end of its
current cycle of short-term interest rate increases are another positive for
small-cap stocks, which have generally out-performed in a declining rate
environment in the past. Stabilization of interest rates also would create a
more favorable environment for those sectors, such as consumer cyclicals and
financials, which have under-performed during the past year.

In July 2000 the Evergreen Select Small Company Value Fund was merged into the
Evergreen Select Small Cap Value Fund.

24
<PAGE>

EVERGREEN
Select Social Principles Fund
Fund at a Glance as of June 30, 2000

--------------------------------------------------------------------------------
PORTFOLIO PROFILE
--------------------------------------------------------------------------------

Philosophy

Evergreen Select Social Principles Fund invests in the stocks of mid-sized U.S.
companies, average market capitalization of $3 billion. The Fund emphasizes
companies that generally respect human rights, play a role in local communities,
and produce useful products in an environmentally sound way. This philosophy
holds that socially conscious investing promotes responsible values without
impairing long-term performance.

Process

The Fund utilizes a fundamental, bottom-up stock selection process which is
research intensive. In addition, the Fund utilizes an external Advisory Board
whose role is to develop and continually review guiding policies and principles
of social investing. All holdings are periodically reviewed to assure adherence
to the Advisory Board Standards.

Benchmark

Standard & Poor's MidCap 400 Index
(S&P MidCap 400)

The advisor is waiving a portion of its advisory fee. Had the fee not been
waived, returns would have been lower.

--------------------------------------------------------------------------------
Performance and Returns/1/
--------------------------------------------------------------------------------

Portfolio Inception Date: 5/31/1988 Class I Class IS
Class Inception Date 11/24/1997 3/12/1998
--------------------------------------------------------------------------------
Average Annual Returns

1 year 19.69% 19.39%
5 years 15.58% 15.27%
10 years 15.17% 14.89%
12-month income dividends per share $0.14 $0.09
12-month capital gain distributions per share $8.48 $8.48

--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------

Select Social Consumer Price S & P 400 Midcap
Principles Index - US Total Return

6/30/90 1,000,000 1,000,000 1,000,000
6/30/91 1,070,817 1,046,959 1,128,418
6/30/92 1,205,555 1,079,292 1,337,790
6/30/93 1,509,253 1,111,624 1,641,334
6/30/94 1,431,946 1,139,338 1,640,132
6/30/95 2,000,767 1,173,980 2,005,057
6/30/96 2,409,838 1,206,313 2,437,143
6/30/97 2,836,491 1,234,026 3,005,611
6/30/98 3,424,178 1,254,811 3,814,137
6/30/99 3,456,145 1,279,446 4,467,439
6/30/00 4,136,916 1,318,838 5,227,381

Comparison of the change in value of a $1,000,000 investment in Evergreen Select
Social Principles Fund Class I/1/, the S&P MidCap 400 and the Consumer Price
Index (CPI).

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

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

Investment objective is non-fundamental and may be changed without the vote of
the Fund's shareholders.

All data is as of June 30, 2000 and subject to change.

25
<PAGE>

EVERGREEN
Select Social Principles Fund
Portfolio Manager Commentary

Portfolio Management Team

[PHOTO] [PHOTO]
Jay Zelko Timothy M. Stevenson, CFA

[PHOTO]
Eric M. Teal

Performance

For the twelve-month period ended June 30, 2000, the Evergreen Select Social
Principles Fund, Class I Shares returned 19.69%, which outpaced the performance
of its benchmark, the S&P Midcap 400 Index, which returned 16.98% for the same
period. A majority of the portfolio's sectors enjoyed strong relative returns
during this period.

Portfolio
Characteristics
---------------
(as of 6/30/2000)

Total Net Assets $84,800,752
Number of Holdings 77
P/E Ratio 21.5x

Environment

The investment environment has vastly improved for mid-cap stocks. Over the
twelve-month period ended June 30, 2000, mid-cap stocks have out-performed both
small-cap and large-cap stocks. The rotation into mid-cap stocks was driven
primarily by the valuation disparity between mid- and large-cap stocks. In
addition, many of the "newest" and "hottest" growth areas are the focus of
mid-cap companies; such as biotechnology, business-to-business commerce and web
development.

Over the last twelve months we have witnessed ideal economic conditions; strong
economic growth, benign inflation and low unemployment. Also, corporations
posted strong earnings gains, prompting investors to shrug off negative
information and drive stock prices higher.

Top 5 Sectors
-------------
(as a percentage of 6/30/2000 net assets)

Information Technology 28.2%
Financials 14.1%
Consumer Discretionary 12.9%
Health Care 9.1%
Industrials 7.6%

Strategy

Within a number of the portfolio's sector weightings, we remained strategically
positioned to capitalize on specific subsectors that enjoy strong fundamentals.
Technology was the strongest contributor to performance. The Fund's technology
holdings emphasized semi-conductor and software manufacturers. The Fund
experienced strong performance from its largest holding, Siebel Systems, the
leader in customer relationship software. Other strong

26
<PAGE>

EVERGREEN
Select Social Principles Fund
Portfolio Manager Commentary

performers were Redback Networks, Ariba, Real Networks and Sanmina. These
companies are leaders in their industry and are revolutionizing the information
world.

In consumer staples, our holdings of Nabisco and Keebler advanced sharply as
Nabisco agreed to be acquired for $55.00 a share and Keebler moved higher in
sympathy as investors speculated on a possible acquisition.

Top 10 Holdings
---------------
(as a percentage of 6/30/2000 net assets)

Siebel Systems, Inc. 6.6%
--------------------------------------------------------------------------------
Qwest Communications International, Inc. 4.3%
--------------------------------------------------------------------------------
PMC-Sierra, Inc. 3.7%
--------------------------------------------------------------------------------
Keebler Foods Co. 2.7%
--------------------------------------------------------------------------------
South Trust Corp. 2.6%
--------------------------------------------------------------------------------
El Paso Energy Corp. 2.3%
--------------------------------------------------------------------------------
Metromedia Fiber Network, Inc., Class A 2.3%
--------------------------------------------------------------------------------
Novellus Systems, Inc. 2.2%
--------------------------------------------------------------------------------
Newpark Resources, Inc. 2.1%
--------------------------------------------------------------------------------
Inktomi Corp. 2.1%
--------------------------------------------------------------------------------

Outlook

In July 2000, the Evergreen Select Social Principles Fund was merged into the
Evergreen Special Equity Fund.

27
<PAGE>

EVERGREEN
Select Strategic Growth Fund
Fund at a Glance as of June 30, 2000

--------------------------------------------------------------------------------
PORTFOLIO PROFILE
--------------------------------------------------------------------------------

Philosophy

Evergreen Select Strategic Growth Fund is a growth-style equity Fund that
emphasizes large and mid-sized U.S. companies. We believe that superior
long-term returns can be achieved through a disciplined approach of investing in
stocks with excellent historical and future earnings growth.

Process

The Fund is managed by two investment professionals who utilize a unique blend
of quantitative and qualitative fundamental analysis. This bottom-up stock
selection process is research-intensive and identifies companies which exhibit
strong current fundamentals, histories of superior earnings/dividend growth and
rising earnings expectations.

Benchmark

Russell 1000 Growth Index
(Russell 1000 Growth)

Historical performance shown for Class IS Shares from 11/24/1997 to its
inception is based on the performance of Class I Shares and has not been
adjusted to reflect the effect of the 0.25% 12b-1 fee applicable to Class IS
Shares. Class I Shares pay no 12b-1 fee. If these fees had been reflected,
returns would have been lower. Prior to 11/24/1997, the returns for Classes I
and IS Share are based on the Fund's predecessor common trust fund's (CTF)
performance, adjusted for estimated mutual fund expenses. The CTF was not
registered under the 1940 Act and was not subject to certain investment
restrictions. If the CTF had been registered, its performance might have been
adversely affected.

The advisor is waiving a portion of its advisory fee. Had the fee not been
waived, returns would have been lower.

--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/1/
--------------------------------------------------------------------------------

Portfolio Inception Date: 12/31/1994 Class I Class IS
Class Inception Date 11/24/1997 2/27/1998

Average Annual Returns
1 year 52.26% 51.87%
5 years 31.44% 31.10%
Since Portfolio Inception 32.75% 32.40%
12-month income dividends per share $0.03 $0.00
12-month capital gain distributions per share $8.05 $8.05

--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------

Select Strategic Consumer Price
Growth I Index - US Russell 1000 Growth

12/31/94 1,000,000 1,000,000 1,000,000
6/30/95 1,209,641 1,018,704 1,202,924
6/30/96 1,516,114 1,046,760 1,537,472
6/30/97 2,004,134 1,070,808 2,019,276
6/30/98 2,621,608 1,088,844 2,653,042
6/30/99 3,124,954 1,110,220 3,376,522
6/30/00 4,757,758 1,144,403 4,242,433

Comparison of the change in value of a $1,000,000 investment in Evergreen Select
Strategic Growth Fund Class I/1/, the Russell 1000 Growth and the Consumer Price
Index (CPI).

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

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

Investment objective is non-fundamental and may be changed without the vote of
the Fund's shareholders.

All data is as of June 30, 2000 and subject to change.

28
<PAGE>

EVERGREEN
Select Strategic Growth Fund
Portfolio Manager Commentary

Portfolio Management Team

David M. Chow, CFA and W. Shannon Reid, CFA manage the Evergreen Select
Strategic Growth Fund. They have over 29 years combined investment experience
and boast a unique blend of quantitative and traditional fundamental analysis
skills. Their disciplined approach seeks consistency of results and superior
service.

[PHOTO] [PHOTO]
DAVID M. CHOW, CFA OF W. SHANNON REID, CFA

Performance

For the twelve-month period ended June 30, 2000, the Evergreen Select Strategic
Growth Fund Class I shares returned 52.26%. This performance significantly
outpaced the Fund's benchmark, the Russell 1000 Growth Index, which returned
25.66%.

Portfolio
Characteristics
---------------
(as of 6/30/2000)

Total Net Assets $841,337,427
-------------------------------------------------------------------------------
Number of Holdings 57
-------------------------------------------------------------------------------
P/E Ratio 43.1x
-------------------------------------------------------------------------------

Environment

A strong domestic economy, an improving global economic outlook and the absence
of signs of inflation drove stock market indices upward through the first eight
and one half months of the reporting period. However, psychology turned negative
in April due to a combination of record valuation levels, signs of incipient
inflation, rising interest rates and an increasingly concerned Federal Reserve
Board.

Top 5 Sectors
-------------
(as a percentage of 6/30/2000 net assets)

Information Technology 52.8%
--------------------------------------------------------------------------------
Health Care 11.9%
--------------------------------------------------------------------------------
Consumer Discretionary 8.5%
--------------------------------------------------------------------------------
Industrials 7.8%
--------------------------------------------------------------------------------
Consumer Staples 7.7%
--------------------------------------------------------------------------------

Strategy

The Fund's management team operates under the principle that superior investment
returns can be achieved by owning a diversified portfolio of established
companies which will deliver superior and sustainable earnings growth. Our
investment process employs a combination of quantitative and qualitative
investment analysis that identifies companies with a history of strong, stable
earnings growth, strong current business fundamentals and rising earnings
expectations.

This methodology has led us to a significant investment in the information
technology sector. As of June 30, 2000, this group represented 52.8% of the
Fund's holdings. Within this sector we continue to emphasize three trends:
technological advances in communications networks, the growth in demand for
enterprise information storage solutions and software solutions providers for
business-to-business electronic commerce.

29
<PAGE>

EVERGREEN
Select Strategic Growth Fund
Portfolio Manager Commentary

Cisco Systems and Nortel Networks, two of the Fund's larger holdings, are prime
beneficiaries of the first trend. Cisco is the dominant player in data
communications infrastructure equipment controlling more than three quarters of
the market for key internet backbone products such as routers and switches.
Nortel is the leading provider of advanced fiber optic communications systems
utilizing a relatively new technology called dense-wavelength divisional
multiplexing. Within the enterprise information storage sector, two of our
favorite names are Network Appliances and Brocade Communications. These two
companies face promising futures as the global economy increasingly becomes
information based and corporations search for efficient methods to store, manage
and access their information databases. Beneficiaries of our third theme,
business-to-business electronic commerce, are Fund holdings such as software
companies Siebel Systems and Mercury Interactive.

Health care represented the Fund's second largest sector weighting at 11.9%.
Pharmaceutical companies such as Pfizer and Schering Plough continue to deliver
steady, double digit earnings growth quarter-after-quarter and have been long
time holdings in the Fund. Recently, we started to add hospital management
stocks such as HCA Healthcare where we sensed that pressures on reimbursement
rates are lessening.

Our exposure to the consumer discretionary companies at 8.5% represents our
third largest sector weighting. Industry leaders such as WalMart and Home Depot
are our major holdings in this group. Rounding out our sector weightings are
industrials at 7.8%, consumer staples at 7.7%, finance at 2.8% and utilities at
0.9%.

Top 10 Holdings
---------------
(as a percentage of 6/30/2000 net assets)

General Electric Co. 6.7%
-------------------------------------------------------------------------------
Pfizer, Inc. 5.8%
-------------------------------------------------------------------------------
Cisco Systems, Inc. 5.3%
-------------------------------------------------------------------------------
EMC Corp. 3.3%
-------------------------------------------------------------------------------
Mercury Interactive Corp. 2.8%
-------------------------------------------------------------------------------
Remedy Corp. 2.8%
-------------------------------------------------------------------------------
Sun Microsystems, Inc. 2.8%
-------------------------------------------------------------------------------
Johnson & Johnson 2.7%
-------------------------------------------------------------------------------
Wal-Mart Stores, Inc. 2.6%
-------------------------------------------------------------------------------
Microsoft Corp. 2.4%
-------------------------------------------------------------------------------

Outlook

The past several years have been extraordinary for growth stock investors.
Returns of this magnitude cannot continue indefinitely. Nevertheless, we remain
positive. Growth stock investing is ultimately about identifying companies that
will produce superior and sustainable earnings growth. Given the revolutionary
events taking place in the fields of information technology, economics and
global politics, we believe these opportunities are more abundant than ever.

30
<PAGE>

EVERGREEN
Select Strategic Value Fund
Fund at a Glance as of June 30, 2000

--------------------------------------------------------------------------------
PORTFOLIO PROFILE
--------------------------------------------------------------------------------

Philosophy

Evergreen Select Strategic Value Fund is a value-style equity Fund which
emphasizes large- and mid-capitalization U.S. companies. This philosophy holds
that stocks, over time, can become mispriced relative to their true value and
that attractive opportunities can be identified through a combination of
quantitative analysis and rigorous fundamental research.

Process

Following the initial screen by our proprietary model which determines that a
stock is selling at a reasonable valuation level, the Strategic Value team
employs an intensive research effort digging deep for indications of value.
Qualitative factors which are analyzed include industry leadership, quality of
management, the company's current competitive position and future earnings
prospects.

Benchmark

Russell 1000 Value Index
(Russell 1000 Value)

Historical performance shown for Class IS Shares from 11/24/1997 to its
inception is based on the performance of Class I Shares and has not been
adjusted to reflect the effect of the 0.25% 12b-1 fee applicable to Class IS
Shares. Class I Shares pay no 12b-1 fee. If these fees had been reflected,
returns would have been lower. Prior to 11/24/1997, the returns for Classes I
and IS Share are based on the Fund's predecessor common trust fund's (CTF)
performance, adjusted for estimated mutual fund expenses. The CTF was not
registered under the 1940 Act and was not subject to certain investment
restrictions. If the CTF had been registered, its performance might have been
adversely affected.

The advisor is waiving a portion of its advisory fee. Had the fee not been
waived, returns would have been lower.

--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/1/
--------------------------------------------------------------------------------

Portfolio Inception Date: 12/31/1981 Class I Class IS
Class Inception Date 11/24/1997 3/11/1998

Average Annual Returns
1 year -7.33% -7.56%
5 years 14.50% 14.23%
10 years 13.33% 13.05%
12-month income dividends per share $2.90 $2.36
12-month capital gain distributions per share $4.19 $4.19

--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------

[GRAPH]

Select Strategic Consumer Price
Value Fund; Index - US Russell 1000 Value

6/30/90 1,000,000 1,000,000 1,000,000
6/30/91 980,815 1,046,959 1,053,395
6/30/92 1,092,611 1,079,292 1,221,358
6/30/93 1,340,835 1,111,624 1,489,425
6/30/94 1,392,832 1,139,338 1,513,599
6/30/95 1,784,385 1,173,980 1,822,760
6/30/96 2,074,155 1,206,313 2,271,679
6/30/97 2,809,348 1,234,026 3,025,515
6/30/98 3,489,922 1,254,811 3,898,325
6/30/99 3,798,062 1,279,446 4,536,347
6/30/00 3,519,415 1,318,838 4,132,076

Comparison of the change in value of a $1,000,000 investment in Evergreen Select
Strategic Value Fund Class I/1/, the Russell 1000 Value and the Consumer Price
Index (CPI).

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

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

Investment objective is non-fundamental and may be changed without the vote
of the Fund's shareholders

All data is as of June 30, 2000 and subject to change.

31
<PAGE>

EVERGREEN
Select Strategic Value Fund
Portfolio Manager Commentary

Portfolio Management

[PHOTO]
TIMOTHY O'GRADY

Timothy O'Grady manages the Evergreen Select Strategic Value Fund. Mr. O'Grady
incorporates a team-oriented approach to indentify the most attractive
opportunities in the market and adhere to the style-specific objectives of the
Fund.

Performance

For the twelve-month period ended June 30, 2000, the -7.33% return of the
Evergreen Select Strategic Value Fund, Class I Shares, outpaced that of its
benchmark, the Russell 1000 Value Index, which returned -8.92% for the same
period. Strong relative performance during the period can be attributed to
strategic over-weighting within the technology sector during the first half of
this fiscal period. Conversely, trimming back on technology during the second
half of this period, during the market volatility in March and April, was
instrumental in the Fund's out-performance over the index during this fiscal
year.

Portfolio
Characteristics
---------------
(as of 6/30/2000)

Total Net Assets $757,194,228
Number of Holdings 43
P/E Ratio 22.1x

Environment

Investor focus on large-capitalization growth companies, and, in particular,
technology companies continued for the past twelve months ending June 30, 2000,
furthering a two-year trend. Since 1997, growth investing has advanced in an
almost unbroken fashion, save for the second quarter of 1999 and for the March
through May period of this year. In fact, investor capitulation to growth stocks
accelerated during the second half of 1999 and in to the first two months of
2000, as the technology laden NASDAQ Index soared to record highs. As a
large-capitalization value investor the current market environment has been
challenging.

The performance of growth stocks relative to value shares during this period can
be justified on the basis that most have experienced strong and rising earnings
per share growth and future expectations of growth in earnings relative to value
stocks. However, our sense is we are beginning to see the early signals of a
change in market leadership. We base our viewpoint on fundamental reasons and
valuation measures. On the fundamental front, corporate earnings momentum
continues positive both on an absolute basis and relative to expectations. An
acceleration in corporate earnings historically serves as a major catalyst for
rotation towards economically sensitive issues and away from growth stocks. From
a valuation standpoint, value stocks are trading at the biggest discount to
growth since the secular bear market in 1974. Stated differently, growth stocks
now command a 125% premium over value stocks. This lacks historical precedent;
moreover, an unacceptable level of risk is now assigned to their valuation. The
continued bullish sentiment towards technology companies and the forces behind
their spectacular advance somewhat defy traditional valuation measures.

32
<PAGE>

EVERGREEN
Select Strategic Value Fund
Portfolio Manager Commentary

Top 5 Sectors
-------------
(as a percentage of 6/30/2000 net assets)

Financials 24.1%
--------------------------------------------------------------------------------
Energy 16.7%
--------------------------------------------------------------------------------
Telecommunication Services 13.7%
--------------------------------------------------------------------------------
Consumer Discretionary 12.4%
--------------------------------------------------------------------------------
Information Technology 10.7%
--------------------------------------------------------------------------------

Strategy

From a strategy standpoint we utilized strength in the share price of our
technology holdings to reduce our overall exposure to the sector. Our focus is
to limit our exposures to industry leaders. Intel and Motorola are two such
examples. Our approach towards financial services is to under-weight the group.
Our strategy is to identify and hold financial institutions whose business
models differentiate themselves from their peers and are likely to be the key
determinant in driving results. In our assessment, Citigroup and Merrill Lynch
possess scale, breadth and intermediation of products and services, and,
importantly, superior technology platforms, meeting our criteria. In the
consumer discretionary area we elected to sell our positions in V.F. Corporation
and Sears, while initiating a position in Lowe's. Lowe's increasing share and
position in the home improvement and construction markets provides an
underpinning of confidence in the company's earnings prospects. In consumer
staples, we added Walt Disney where we believe the company's branded content is
an undervalued asset. Further investment in the sector was made with the
addition of Cablevision and Adelphia Communications. Both companies are cable
broadband communication providers, operating in attractive markets with strong
cable assets and services. Our positioning in basic industry has been misguided
and has penalized results. As described earlier, the market continues to reward
stocks exhibiting more "growth" characteristics or a growth orientation in their
business model--the so-called "new economy" stocks. As a result, exposure to
basic cyclicals of any stripe has proven to be less than beneficial even to
those companies showing strong earnings gains. Against this backdrop, action was
taken to remove U.S. Steel as a holding. In our opinion, the deep cyclical
nature of the company's business is unlikely to sustain any reasonable period
where its stock price is likely to out-perform the market. Finally, during the
past twelve months we increased our commitment to the energy sector. In our
assessment, the fundamentals and forward prospects for the group are attractive,
as well as their valuation metrics.

Top 10 Holdings
---------------
(as a percentage of 6/30/2000 net assets)

Exxon Mobil Corp. 4.6%
-------------------------------------------------------------------------------
Merrill Lynch & Co., Inc. 4.2%
-------------------------------------------------------------------------------
Citigroup, Inc. 3.5%
-------------------------------------------------------------------------------
Mellon Financial Corp. 3.5%
-------------------------------------------------------------------------------
Chase Manhattan Corp. 3.4%
-------------------------------------------------------------------------------
Wells Fargo Co. 3.2%
-------------------------------------------------------------------------------
The Williams Companies, Inc. 3.1%
-------------------------------------------------------------------------------
GTE Corp. 3.1%
-------------------------------------------------------------------------------
Alcoa, Inc. 3.1%
-------------------------------------------------------------------------------
Disney, Inc. 3.0%
-------------------------------------------------------------------------------

33
<PAGE>

EVERGREEN
Select Strategic Value Fund
Portfolio Manager Commentary

Outlook

Economic data released during June generally supported the thesis that the
Federal Reserve was close to the end of its tightening phase. Many pundits,
including growth investors rushed back into the old growth leadership, believing
interest rates have peaked for this cycle. Performance between the two major
equity styles, growth and value, were determined by the perceived future
direction of interest rates.

From our perspective, growth stocks look no more attractive today then they did
back during the first quarter. The need to own breakaway technology stocks
continues to stretch the current unprecedented valuation differential between
growth and value companies. The soft-landing thesis has become very popularized
recently. So much so that complacency has become the mindset of many. Our sense
is looking through the window of the second quarter is not extremely helpful in
viewing the current and future direction of the equity market. It provides an
explanation of short-term trends, only. In our opinion, from a longer-term
perspective, the relative valuation and earnings environment still favors value
stocks.

34
<PAGE>

EVERGREEN
Select Balanced Fund
Financial Highlights
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended June 30,
----------------------------
2000 1999 1998 (a)
<S> <C> <C> <C>
CLASS I SHARES
Net asset value, beginning of period $ 13.56 $ 13.39 $ 12.58
-------- -------- --------
Income from investment operations
Net investment income 0.44 0.46 0.16
Net realized and unrealized gains on securities 2.09 0.27 0.81
-------- -------- --------
Total from investment operations 2.53 0.73 0.97
-------- -------- --------
Distributions to shareholders from
Net investment income (0.46) (0.42) (0.16)
Net realized gains (0.53) (0.14) 0
-------- -------- --------
Total distributions to shareholders (0.99) (0.56) (0.16)
-------- -------- --------
Net asset value, end of period $ 15.10 $ 13.56 $ 13.39
-------- -------- --------
Total return 19.52% 5.70% 7.76%
Ratios and supplemental data
Net assets, end of period (thousands) $601,453 $658,733 $723,850
Ratios to average net assets
Expenses++ 0.65% 0.69% 0.70%+
Net investment income 3.04% 3.47% 2.80%+
Portfolio turnover rate 163% 60% 37%

<CAPTION>
Year Ended June 30,
----------------------------
2000 1999 1998 (b)
<S> <C> <C> <C>
CLASS IS SHARES
Net asset value, beginning of period $ 13.59 $ 13.42 $ 13.34
-------- -------- --------
Income from investment operations
Net investment income 0.43 0.35 0.07
Net realized and unrealized gains on securities 2.08 0.35 0.09
-------- -------- --------
Total from investment operations 2.51 0.70 0.16
-------- -------- --------
Distributions to shareholders from
Net investment income (0.43) (0.39) (0.08)
Net realized gains (0.53) (0.14) 0
-------- -------- --------
Total distributions to shareholders (0.96) (0.53) (0.08)
-------- -------- --------
Net asset value, end of period $ 15.14 $ 13.59 $ 13.42
-------- -------- --------
Total return 19.23% 5.43% 1.23%
Ratios and supplemental data
Net assets, end of period (thousands) $ 1,039 $ 405 $ 215
Ratios to average net assets
Expenses++ 0.89% 0.93% 0.95%+
Net investment income 2.74% 3.35% 2.58%+
Portfolio turnover rate 163% 60% 37%
</TABLE>
(a) For the period from January 22, 1998 (commencement of class operations) to
June 30, 1998.
(b) For the period from April 9, 1998 (commencement of class operations) to
June 30, 1998.
+ Annualized
++ The ratio of expenses to average net assets includes fee waivers and ex-
cludes expense reductions.

See Combined Notes to Financial Statements.

35
<PAGE>

EVERGREEN
Select Core Equity Fund
Financial Highlights
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended June 30,
----------------------------------
2000 1999 1998 (a)
<S> <C> <C> <C>
CLASS I SHARES
Net asset value, beginning of period $ 92.30 $ 92.59 $ 82.97
---------- ---------- ----------
Income from investment operations
Net investment income 0.41 0.72 0.51
Net realized and unrealized gains on
securities 6.16 7.51 9.62
---------- ---------- ----------
Total from investment operations 6.57 8.23 10.13
---------- ---------- ----------
Distributions to shareholders from
Net investment income (0.40) (0.69) (0.51)
Net realized gains (9.10) (7.83) 0
---------- ---------- ----------
Total distributions to shareholders (9.50) (8.52) (0.51)
---------- ---------- ----------
Net asset value, end of period $ 89.37 $ 92.30 $ 92.59
---------- ---------- ----------
Total return 7.71% 9.82% 12.23%
Ratios and supplemental data
Net assets, end of period (thousands) $2,485,896 $1,913,483 $1,952,436
Ratios to average net assets
Expenses++ 0.70% 0.67% 0.70%+
Net investment income 0.47% 0.83% 0.96%+
Portfolio turnover rate 42% 55% 22%

<CAPTION>
Year Ended June 30,
----------------------------------
2000 1999 1998 (b)
<S> <C> <C> <C>
CLASS IS SHARES
Net asset value, beginning of period $ 86.54 $ 87.33 $ 80.21
---------- ---------- ----------
Income from investment operations
Net investment income 0.19 0.48 0.27
Net realized and unrealized gains on
securities 5.75 7.02 7.16
---------- ---------- ----------
Total from investment operations 5.94 7.50 7.43
---------- ---------- ----------
Distributions to shareholders from
Net investment income (0.19) (0.46) (0.31)
Net realized gains (9.10) (7.83) 0
---------- ---------- ----------
Total distributions to shareholders (9.29) (8.29) (0.31)
---------- ---------- ----------
Net asset value, end of period $ 83.19 $ 86.54 $ 87.33
---------- ---------- ----------
Total return 7.45% 9.53% 9.27%
Ratios and supplemental data
Net assets, end of period (thousands) $ 52,699 $ 30,240 $ 18,244
Ratios to average net assets
Expenses++ 0.95% 0.92% 0.95%+
Net investment income 0.21% 0.56% 0.60%+
Portfolio turnover rate 42% 55% 22%
</TABLE>
(a) For the period from November 24, 1997 (commencement of class operations) to
June 30, 1998.
(b) For the period from February 4, 1998 (commencement of class operations) to
June 30, 1998.
+ Annualized.
++ The ratio of expenses to average net assets includes fee waivers and ex-
cludes expense reductions.

See Combined Notes to Financial Statements.

36
<PAGE>

EVERGREEN
Select Diversified Value Fund
Financial Highlights
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended June 30,
----------------------------
2000 1999 1998 (a)
<S> <C> <C> <C>
CLASS I SHARES
Net asset value, beginning of period $ 27.65 $ 26.22 $ 23.81
-------- -------- --------
Income from investment operations
Net investment income 0.13 0.22 0.14
Net realized and unrealized gains on securities
and futures contracts 1.70 2.06 2.41
-------- -------- --------
Total from investment operations 1.83 2.28 2.55
-------- -------- --------
Distributions to shareholders from
Net investment income (0.15) (0.20) (0.14)
Net realized gains (1.08) (0.65) 0
-------- -------- --------
Total distributions to shareholders (1.23) (0.85) (0.14)
-------- -------- --------
Net asset value, end of period $ 28.25 $ 27.65 $ 26.22
-------- -------- --------
Total return 6.78% 9.08% 10.72%
Ratios and supplemental data
Net assets, end of period (thousands) $481,460 $606,355 $797,352
Ratios to average net assets
Expenses++ 0.60% 0.62% 0.68%+
Net investment income 0.47% 0.88% 1.24%+
Portfolio turnover rate 95% 76% 56%

<CAPTION>
Year Ended June 30,
----------------------------
2000 1999 1998 (b)
<S> <C> <C> <C>
CLASS IS SHARES
Net asset value, beginning of period $ 27.33 $ 25.93 $ 26.56
-------- -------- --------
Income from investment operations
Net investment income 0.06 0.12 0.06
Net realized and unrealized gains or losses on
securities and futures contracts 1.68 2.07 (0.64)
-------- -------- --------
Total from investment operations 1.74 2.19 (0.58)
-------- -------- --------
Distributions to shareholders from
Net investment income (0.08) (0.14) (0.05)
Net realized gains (1.08) (0.65) 0
-------- -------- --------
Total distributions to shareholders (1.16) (0.79) (0.05)
-------- -------- --------
Net asset value, end of period $ 27.91 $ 27.33 $ 25.93
-------- -------- --------
Total return 6.51% 8.77% (2.19%)
Ratios and supplemental data
Net assets, end of period (thousands) $ 1,384 $ 1,384 $ 210
Ratios to average net assets
Expenses++ 0.85% 0.88% 0.93%+
Net investment income 0.21% 0.62% 0.80%+
Portfolio turnover rate 95% 76% 56%
</TABLE>
(a) For the period from January 22, 1998 (commencement of class operations) to
June 30, 1998.
(b) For the period from March 31, 1998 (commencement of class operations) to
June 30, 1998.
+ Annualized.
++ The ratio of expenses to average net assets includes fee waivers and ex-
cludes expense reductions.

See Combined Notes to Financial Statements.

37
<PAGE>

EVERGREEN
Select Large Cap Blend Fund
Financial Highlights
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended June 30,
----------------------------
2000 1999(a)(c)1998(b)(c)
<S> <C> <C> <C>
CLASS I SHARES
Net asset value, beginning of period $ 48.35 $ 50.74 $ 45.05
-------- -------- --------
Income from investment operations
Net investment income 0.23 0.40 0.23
Net realized and unrealized gains on securities 1.84 2.81 5.70
-------- -------- --------
Total from investment operations 2.07 3.21 5.93
-------- -------- --------
Distributions to shareholders from
Net investment income (0.23) (0.40) (0.24)
Net realized gains (6.51) (5.20) 0
-------- -------- --------
Total distributions to shareholders (6.74) (5.60) (0.24)
-------- -------- --------
Net asset value, end of period $ 43.68 $ 48.35 $ 50.74
-------- -------- --------
Total return 4.70% 7.12% 13.18%
Ratios and supplemental data
Net assets, end of period (thousands) $277,163 $438,375 $497,534
Ratios to average net assets
Expenses++ 0.71% 0.68% 0.71%+
Net investment income 0.51% 0.79% 0.80%+
Portfolio turnover rate 25% 46% 42%

<CAPTION>
Year Ended June 30,
----------------------------
2000 # 1999 (a) 1998 (d)
<S> <C> <C> <C>
CLASS IS SHARES
Net asset value, beginning of period $ 48.33 $ 50.74 $ 49.75
-------- -------- --------
Income from investment operations
Net investment income 0.12 0.28 0.08
Net realized and unrealized gains on securities 1.84 2.81 1.00
-------- -------- --------
Total from investment operations 1.96 3.09 1.08
-------- -------- --------
Distributions to shareholders from
Net investment income (0.14) (0.30) (0.09)
Net realized gains (6.51) (5.20) 0
-------- -------- --------
Total distributions to shareholders (6.65) (5.50) (0.09)
-------- -------- --------
Net asset value, end of period $ 43.64 $ 48.33 $ 50.74
-------- -------- --------
Total return 4.45% 6.83% 2.17%
Ratios and supplemental data
Net assets, end of period (thousands) $ 165 $ 382 $ 301
Ratios to average net assets
Expenses++ 0.96% 0.93% 0.96%+
Net investment income 0.28% 0.53% 0.57%+
Portfolio turnover rate 25% 46% 42%
</TABLE>
(a) The Fund redesignated $0.02 per share for Class I and IS of distributions
from net investment income declared after January 1, 1999, as capital gains
distributions after January 1, 1999.
(b) For the period from November 24, 1997 (commencement of class operations) to
June 30, 1998.
(c) On April 30, 1999, Class IC shares of the Fund were converted to Class I
shares. Shareholders of Class IC shares became owners of that number of
Class I shares having a net asset value equal to the net asset value of
their shares immediately prior to the close of business on April 30, 1999.
Class IC is the accounting survivor, its basis of accounting for assets and
liabilities and its operating results for the periods prior to April 30,
1999 have been carried forward in these financial statements.
(d) For the period from March 12, 1998 (commencement of class operations) to
June 30, 1998.
+ Annualized.
++ The ratio of expenses to average net assets includes fee waivers and ex-
cludes expense reductions.
# Net investment income is based on average shares outstanding during the pe-
riod.

See Combined Notes to Financial Statements.

38
<PAGE>

EVERGREEN
Select Secular Growth Fund
Financial Highlights
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended June 30,
----------------------
2000 1999 (a)
<S> <C> <C>
CLASS I SHARES
Net asset value, beginning of period $ 99.99 $ 100.00
---------- ---------
Income from investment operations
Net investment income (loss) (0.35) 0.15
Net realized and unrealized gains or losses on
securities 50.07 (0.01)
---------- ---------
Total from investment operations 49.72 0.14
---------- ---------
Distributions to shareholders from
Net investment income 0 (0.15)
Net realized gains (3.27) 0
---------- ---------
Total distributions to shareholders (3.27) (0.15)
---------- ---------
Net asset value, end of period $ 146.44 $ 99.99
---------- ---------
Total return 50.60% 0.14%
Ratios and supplemental data
Net assets, end of period (thousands) $ 917,548 $ 40,128
Ratios to average net assets
Expenses++ 0.71% 0.71%+
Net investment income (loss) (0.24%) 0.18%+
Portfolio turnover rate 137% 65%

<CAPTION>
Year Ended June 30,
----------------------
2000 1999 (a)
<S> <C> <C>
CLASS IS SHARES
Net asset value, beginning of period $ 99.95 $ 100.00
---------- ---------
Income from investment operations
Net investment income (loss) (0.45) 0.21
Net realized and unrealized gains or losses on
securities 49.75 (0.15)
---------- ---------
Total from investment operations 49.30 0.06
---------- ---------
Distributions to shareholders from
Net investment income 0 (0.11)
Net realized gains (3.27) 0
---------- ---------
Total distributions to shareholders (3.27) (0.11)
---------- ---------
Net asset value, end of period $ 145.98 $ 99.95
---------- ---------
Total return 50.19% 0.06%
Ratios and supplemental data
Net assets, end of period (thousands) $ 1,212 $ 1
Ratios to average net assets
Expenses++ 0.97% 0.96%+
Net investment income (loss) (0.53%) 0.63%+
Portfolio turnover rate 137% 65%
</TABLE>
(a) For the period from February 26, 1999 (commencement of class operations) to
June 30, 1999.
+ Annualized.
++ Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.

See Combined Notes to Financial Statements.

39
<PAGE>

EVERGREEN
Select Small Cap Growth Fund
Financial Highlights
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended
Year Ended June 30, February 28,
----------------------------- -------------------- Year Ended
2000 1999 1998 (a) 1998 # 1997 (b) # June 30, 1996 (c)
<S> <C> <C> <C> <C> <C> <C>
CLASS I SHARES
Net asset value,
beginning of period $ 13.65 $ 13.12 $ 13.23 $ 11.28 $11.65 $10.00
-------- ------- ------- ------- ------ ------
Income from investment
operations
Net investment loss (0.07) (0.08) (0.03) (0.06) (0.04) (0.03)
Net realized and
unrealized gains or
losses on securities 9.18 0.63 (0.08) 2.48 (0.16) 1.68
-------- ------- ------- ------- ------ ------
Total from investment
operations 9.11 0.55 (0.11) 2.42 (0.20) 1.65
-------- ------- ------- ------- ------ ------
Distributions to
shareholders from
Net realized gains 0 (0.02) 0 (0.47) (0.17) 0
-------- ------- ------- ------- ------ ------
Total distributions to
shareholders 0 (0.02) 0 (0.47) (0.17) 0
-------- ------- ------- ------- ------ ------
Net asset value, end of
period $ 22.76 $ 13.65 $ 13.12 $ 13.23 $11.28 $11.65
-------- ------- ------- ------- ------ ------
Total return 66.74% 4.22% (0.83%) 21.67% (1.75%) 16.50%
Ratios and supplemental
data
Net assets, end of
period (thousands) $159,444 $70,114 $69,283 $47,524 $2,888 $2,446
Ratios to average net
assets
Expenses++ 0.93% 1.02% 1.01%+ 0.92% 1.00%+ 1.00%+
Net investment loss (0.42%) (0.68%) (0.62%)+ (0.48%) (0.57%)+ (0.45%)+
Portfolio turnover rate 312% 165% 54% 166% 123% 57%
</TABLE>
(a) For the period from March 1, 1998 to June 30, 1998. The Fund changed its
fiscal year end from February 28 to June 30, effective June 30, 1998.
(b) For the period form July 1, 1996 to February 28, 1997. The Fund changed its
fiscal year end from June 30 to February 28, effective February 28, 1997.
(c) For the period from December 28, 1995 (commencement of class operations) to
June 30, 1996.
+ Annualized.
++ The ratio of expenses to average net assets includes fee waivers and ex-
cludes expense reductions.
# Net investment loss is based on average shares outstanding during the peri-
od.

See Combined Notes to Financial Statements.

40
<PAGE>

EVERGREEN
Select Small Company Value Fund
Financial Highlights
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended June 30,
-----------------------------
2000 1999 1998 (a)
<S> <C> <C> <C>
CLASS I SHARES
Net asset value, beginning of period $ 8.94 $ 10.09 $ 10.00
------- -------- -------
Income from investment operations
Net investment income 0.04 0.03 0.04
Net realized and unrealized gains or losses on
securities (0.21) (1.12) 0.09
------- -------- -------
Total from investment operations (0.17) (1.09) 0.13
------- -------- -------
Distributions to shareholders from
Net investment income (0.04) (0.03) (0.04)
Net realized gains 0 (0.03) 0
------- -------- -------
Total distributions to shareholders (0.04) (0.06) (0.04)
------- -------- -------
Net asset value, end of period $ 8.73 $ 8.94 $ 10.09
------- -------- -------
Total return (1.89%) (10.73%) 1.28%
Ratios and supplemental data
Net assets, end of period (thousands) $66,685 $108,180 $77,647
Ratios to average net assets
Expenses++ 0.96% 0.97% 1.01%+
Net investment income 0.44% 0.29% 0.68%+
Portfolio turnover rate 104% 48% 23%
</TABLE>

<TABLE>
<CAPTION>
Year Ended June
30,
-------------------
2000 # 1999 (b) #
<S> <C> <C>
CLASS IS SHARES
Net asset value, beginning of period $ 8.64 $8.56
------ -----
Income from investment operations
Net investment income 0.04 0
Net realized and unrealized gains or losses on securities (0.20) 0.08
------ -----
Total from investment operations (0.16) 0.08
------ -----
Distributions to shareholders from
Net investment income (0.03) 0
------ -----
Total distributions to shareholders (0.03) 0
------ -----
Net asset value, end of period $ 8.45 $8.64
------ -----
Total return (1.86%) 0.99%
Ratios and supplemental data
Net assets, end of period (thousands) $1,337 $ 1
Ratios to average net assets
Expenses++ 1.21% 1.24%+
Net investment income 0.50% 0.00%+
Portfolio turnover rate 104% 48%
</TABLE>
(a) For the period from December 23, 1997 (commencement of class operations) to
June 30, 1998.
(b) For the period from December 31, 1998 (commencement of class operations) to
June 30, 1999.
+ Annualized
++ The ratio of expenses to average net assets includes fee waivers and ex-
cludes expense reductions.
# Net investment income is based on average shares outstanding during the pe-
riod.

See Combined Notes to Financial Statements.

41
<PAGE>

EVERGREEN
Select Social Principles Fund
Financial Highlights
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended June 30,
---------------------------
2000 1999 1998 (a)
<S> <C> <C> <C>
CLASS I SHARES (b)
Net asset value, beginning of period $ 36.91 $ 38.95 $ 36.65
------- -------- --------
Income from investment operations
Net investment income 0.13 0.11 0.03
Net realized and unrealized gains on securities 5.29 0.09 2.31
------- -------- --------
Total from investment operations 5.42 0.20 2.34
------- -------- --------
Distributions to shareholders from
Net investment income (0.14) (0.14) (0.04)
Net realized gains (8.48) (2.10) 0
------- -------- --------
Total distributions to shareholders (8.62) (2.24) (0.04)
------- -------- --------
Net asset value, end of period $ 33.71 $ 36.91 $ 38.95
------- -------- --------
Total return 19.69% 0.90% 6.38%
Ratios and supplemental data
Net assets, end of period (thousands) $84,495 $134,476 $177,187
Ratios to average net assets
Expenses++ 0.84% 0.84% 0.86%+
Net investment income 0.38% 0.33% 0.12%+
Portfolio turnover rate 47% 36% 24%

<CAPTION>
Year Ended June 30,
---------------------------
2000 1999 1998 (c)
<S> <C> <C> <C>
CLASS IS SHARES
Net asset value, beginning of period $ 36.86 $ 38.94 $ 38.44
------- -------- --------
Income from investment operations
Net investment income (loss) 0.17 (0.04) (0.01)
Net realized and unrealized gains on securities 5.15 0.14 0.52
------- -------- --------
Total from investment operations 5.32 0.10 0.51
------- -------- --------
Distributions to shareholders from
Net investment income (0.09) (0.08) (0.01)
Net realized gains (8.48) (2.10) 0
------- -------- --------
Total distributions to shareholders (8.57) (2.18) (0.01)
------- -------- --------
Net asset value, end of period $ 33.61 $ 36.86 $ 38.94
------- -------- --------
Total return 19.39% 0.64% 1.32%
Ratios and supplemental data
Net assets, end of period (thousands) $ 306 $ 60 $ 205
Ratios to average net assets:
Expenses++ 1.09% 1.09% 1.11%+
Net investment income (loss) 0.15% 0.06% (0.12%)+
Portfolio turnover rate 47% 36% 24%
</TABLE>
(a) For the period from November 24, 1997 (commencement of class operations) to
June 30, 1998.
(b) On April 30, 1999, Class IC shares of the Fund were converted to Class I
shares. Shareholders of Class IC shares became owners of that number of
Class I shares having a net asset value equal to the net asset value of
their shares immediately prior to the close of business on April 30, 1999.
Class IC is the accounting survivor, its basis of accounting for assets and
liabilities and its operating results for the periods prior to April 30,
1999 have been carried forward in these financial statements.
(c) For the period from March 12, 1998 (commencement of class operations) to
June 30, 1998.
+ Annualized.
++ The ratio of expenses to average net assets includes fee waivers and ex-
cludes expense reductions.

See Combined Notes to Financial Statements.

42
<PAGE>

EVERGREEN
Select Strategic Growth Fund
Financial Highlights
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended June 30,
------------------------------
2000 1999 # 1998 (a)
<S> <C> <C> <C>
CLASS I SHARES
Net asset value, beginning of period $ 41.94 $ 38.41 $ 32.45
-------- -------- --------
Income from investment operations
Net investment income 0.04 0.08 0.04
Net realized and unrealized gains on
securities 18.58 6.80 5.96
-------- -------- --------
Total from investment operations 18.62 6.88 6.00
-------- -------- --------
Distributions to shareholders from
Net investment income (0.03) (0.09) (0.04)
Net realized gains (8.05) (3.26) 0
-------- -------- --------
Total distributions to shareholders (8.08) (3.35) (0.04)
-------- -------- --------
Net asset value, end of period $ 52.48 $ 41.94 $ 38.41
-------- -------- --------
Total return 52.26% 19.22% 18.53%
Ratios and supplemental data
Net assets, end of period (thousands) $817,618 $481,119 $321,532
Ratios to average net assets
Expenses++ 0.72% 0.72% 0.72%+
Net investment income 0.80% 0.24% 0.19%+
Portfolio turnover rate 152% 155% 80%

<CAPTION>
Year Ended June 30,
------------------------------
2000 1999 # 1998 (b)
<S> <C> <C> <C>
CLASS IS SHARES
Net asset value, beginning of period $ 41.83 $ 38.36 $ 36.10
-------- -------- --------
Income from investment operations
Net investment income (loss) (0.05) 0.04 (0.08)
Net realized and unrealized gains on
securities 18.48 6.73 2.34
-------- -------- --------
Total from investment operations 18.43 6.77 2.26
-------- -------- --------
Distributions to shareholders from
Net investment income 0 (0.04) 0
Net realized gains (8.05) (3.26) 0
-------- -------- --------
Total distributions to shareholders (8.05) (3.30) 0
-------- -------- --------
Net asset value, end of period $ 52.21 $ 41.83 $ 38.36
-------- -------- --------
Total return 51.87% 18.88% 6.29%
Ratios and supplemental data
Net assets, end of period (thousands) $ 23,719 $ 12,650 $ 2,373
Ratios to average net assets
Expenses++ 0.97% 0.97% 0.97%+
Net investment loss (0.17%) (0.03%) (0.27%)+
Portfolio turnover rate 152% 155% 80%
</TABLE>
(a) For the period from November 24, 1997 (commencement of class operations) to
June 30, 1998.
(b) For the period from February 27, 1998 (commencement of class operations) to
June 30, 1998.
+ Annualized.
++ The ratio of expenses to average net assets includes fee waivers and ex-
cludes expense reductions.
# Net investment income or loss is based on average shares outstanding during
the period.

See Combined Notes to Financial Statements.

43
<PAGE>

EVERGREEN
Select Strategic Value Fund
Financial Highlights
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended June 30,
-----------------------------
2000 1999 1998 (a)
<S> <C> <C> <C>
CLASS I SHARES
Net asset value, beginning of period $ 237.17 $ 226.02 $ 203.35
-------- -------- --------
Income from investment operations
Net investment income 2.47 3.31 1.60
Net realized and unrealized gains or losses on
securities (19.42) 15.66 22.67
-------- -------- --------
Total from investment operations (16.95) 18.97 24.27
-------- -------- --------
Distributions to shareholders from
Net investment income (2.90) (2.93) (1.60)
Net realized gains (4.19) (4.89) 0
-------- -------- --------
Total distributions to shareholders (7.09) (7.82) (1.60)
-------- -------- --------
Net asset value, end of period $ 213.13 $ 237.17 $ 226.02
-------- -------- --------
Total return (7.33%) 8.85% 11.95%
Ratios and supplemental data
Net assets, end of period (thousands) $750,470 $530,995 $287,194
Ratios to average net assets
Expenses++ 0.75% 0.71% 0.75%+
Net investment income 1.14% 1.61% 1.26%+
Portfolio turnover rate 31% 41% 12%

<CAPTION>
Year Ended June 30,
-----------------------------
2000 1999 1998 (b)
<S> <C> <C> <C>
CLASS IS SHARES
Net asset value, beginning of period $ 237.23 $ 226.04 $ 223.08
-------- -------- --------
Income from investment operations
Net investment income 1.93 2.87 0.61
Net realized and unrealized gains or losses on
securities (19.45) 15.62 3.13
-------- -------- --------
Total from investment operations (17.52) 18.49 3.74
-------- -------- --------
Distributions to shareholders from
Net investment income (2.36) (2.41) (0.78)
Net realized gains (4.19) (4.89) 0
-------- -------- --------
Total distributions to shareholders (6.55) (7.30) (0.78)
-------- -------- --------
Net asset value, end of period $ 213.16 $ 237.23 $ 226.04
-------- -------- --------
Total return (7.56%) 8.60% 1.68%
Ratios and supplemental data
Net assets, end of period (thousands) $ 6,724 $ 1,810 $ 1,327
Ratios to average net assets
Expenses++ 1.00% 0.96% 1.00%+
Net investment income 0.87% 1.34% 0.93%+
Portfolio turnover rate 31% 41% 12%
</TABLE>
(a) For the period from November 24, 1997 (commencement of class operations) to
June 30, 1998.
(b) For the period from March 11, 1998 (commencement of class operations) to
June 30, 1998.
+ Annualized.
++ The ratio of expenses to average net assets includes fee waivers and ex-
cludes expense reductions.

See Combined Notes to Financial Statements.

44
<PAGE>

EVERGREEN
Select Balanced Fund
Schedule of Investments
June 30, 2000

<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
CORPORATE BONDS - 14.3%
CONSUMER DISCRETIONARY - 2.7%
Food & Drug Retailing - 0.6%
Albertsons, Inc., 7.45%, 08/01/2029......... A $ 3,750,000 $ 3,491,565
------------
Household Durables - 0.5%
Stanley Works, 7.375%, 12/15/2002........... A 3,299,000 3,312,160
------------
Media - 1.3%
Comcast Cable Communications, 6.20%,
11/15/2008................................. BBB 9,000,000 8,121,861
------------
Multi-line Retail - 0.3%
Wal-Mart Stores, Inc.:
8.625%, 04/01/2001......................... AA 1,000,000 1,011,201
9.10%, 07/15/2000.......................... AA 500,000 500,265
------------
1,511,466
------------
CONSUMER STAPLES - 0.8%
Beverages - 0.1%
Coca Cola Co., 6.00%, 07/15/2003............ A+ 750,000 727,679
------------
Food Products - 0.7%
General Mills, Inc., Ser. B, 9.00%,
12/20/2002................................. A+ 3,836,000 3,971,069
------------
ENERGY - 1.4%
Energy Equipment & Services - 0.8%
Calenergy, Inc., 7.52%, 09/15/2008.......... BBB- 5,000,000 4,845,260
------------
Oil & Gas - 0.6%
BP Amoco Plc, 9.00%, 04/01/2021............. AA+ 3,069,000 3,562,627
------------
FINANCIALS - 6.8%
Banks - 2.9%
Bank of America Corp., 6.75%, 03/15/2003.... A 2,302,000 2,263,787
First Chicago Corp., 9.875%, 08/15/2000..... A- 3,836,000 3,847,458
Intl. Bank For Reconstruction & Dev. Co.,
MTN, 7.95%, 05/15/2016..................... NA 2,110,000 2,265,262
NationsBank Corp., 7.625%, 04/15/2005....... A 7,673,000 7,687,433
Norwest Corp., MTN, 6.20%, 12/01/2005....... A+ 500,000 474,173
Republic New York Corp., 8.25%, 11/01/2001.. A 500,000 505,081
United States Bancorp, 6.75%, 10/15/2005.... A- 500,000 480,947
------------
17,524,141
------------
Diversified Financials - 3.2%
Chrysler Financial Corp., 6.95%,
03/25/2002................................. A+ 500,000 497,560
Dean Witter, Discover & Co., 6.75%,
10/15/2013................................. AA- 4,220,000 3,799,709
Ford Motor Credit Co.:
6.25%, 11/08/2000.......................... A 500,000 498,475
7.50%, 01/15/2003.......................... A 500,000 499,627
General Electric Capital Corp., 8.75%,
03/14/2003................................. NA 4,200,000 4,358,189
Jet Equipment Trust, Ser. A10, 9.41%,
06/15/2010................................. NR 5,276,303 5,644,631
</TABLE>

45
<PAGE>

EVERGREEN
Select Balanced Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
CORPORATE BONDS - continued
FINANCIALS - continued
Diversified Financials - continued
Merrill Lynch, Pierce, Fenner & Smith, Inc.,
7.00%, 04/27/2008.......................... AA- $ 4,336,000 $ 4,110,467
------------
19,408,658
------------
Insurance - 0.7%
Liberty Financial Cos., Inc., 7.625%,
11/15/2028................................. A- 5,000,000 4,237,935
------------
HEALTH CARE - 0.6%
Health Care Equipment & Supplies - 0.6%
Baxter Intl., Inc., 7.25%, 02/15/2008....... A 3,836,000 3,744,822
------------
INDUSTRIALS - 1.0%
Commercial Services & Supplies - 0.2%
Waste Management, Inc., 8.75%, 05/01/2018... BBB 1,074,000 972,152
------------
Paper & Forest Products - 0.8%
Donohue Forest Products, Inc., 7.625%,
05/15/2007................................. BBB- 5,000,000 4,895,275
------------
MATERIALS - 0.9%
Chemicals - 0.9%
Dow Chemical Co., 8.625%, 04/01/2006........ A 3,836,000 4,075,228
Du Pont (E.I.) De Nemours & Co., 8.50%,
02/15/2003................................. AA- 1,000,000 1,011,059
------------
5,086,287
------------
TELECOMMUNICATION SERVICES - 0.1%
Communications Equipment - 0.1%
Ameritech Capital Funding Corp., 6.55%,
01/15/2028................................. AA- 925,000 791,244
------------
Total Corporate Bonds (cost $94,501,751).. 86,204,201
------------
MORTGAGE-BACKED SECURITIES - 0.6%
GNMA:
8.50%, 05/15/2021-06/15/2022............... AAA 2,183,389 2,241,859
9.00%, 09/15/2021-10/15/2021............... AAA 1,170,412 1,209,533
9.50%, 02/15/2021.......................... AAA 365,174 379,666
------------
Total Mortgage-Backed Securities (cost
$3,958,010).............................. 3,831,058
------------
U.S. TREASURY OBLIGATIONS - 29.1%
U.S. Treasury Bonds:
6.25%, 05/15/2030.......................... AAA 13,070,000 13,723,500
7.625%, 02/15/2007......................... AAA 16,920,000 17,200,246
7.875%, 02/15/2021......................... AAA 11,300,000 13,422,287
8.125%, 08/15/2021......................... AAA 13,900,000 16,953,663
8.75%, 05/15/2017.......................... AAA 4,500,000 5,657,346
8.875%, 08/15/2017......................... AAA 1,513,000 1,924,821
</TABLE>

46
<PAGE>

EVERGREEN
Select Balanced Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Credit Principal
Rating/\ Amount Value
<S> <C> <C> <C>
U.S. TREASURY OBLIGATIONS - continued
U.S. Treasury Bonds - continued
9.125%, 05/15/2018.......................... AAA $ 5,828,000 $ 7,605,540
11.75%, 11/15/2014.......................... AAA 8,400,000 11,584,129
12.00%, 08/15/2013.......................... AAA 9,800,000 13,245,317
U.S. Treasury Notes:
5.75%, 08/15/2003........................... AAA 10,000,000 9,831,250
6.25%, 02/15/2003........................... AAA 14,300,000 14,264,250
6.625%, 04/30/2002.......................... AAA 8,150,000 8,172,926
6.875%, 05/15/2006.......................... AAA 10,600,000 10,911,375
7.25%, 05/15/2004........................... AAA 14,700,000 15,159,375
7.50%, 02/15/2005........................... AAA 11,000,000 11,539,693
7.75%, 02/15/2001........................... AAA 3,773,000 3,804,837
------------
Total U.S. Treasury Obligations (cost
$174,886,454)............................. 175,000,555
------------
YANKEE OBLIGATIONS-CORPORATE - 0.2%
INDUSTRIALS - 0.2%
Industrial Conglomerates - 0.2%
Tyco Intl. Group SA, 6.125%, 11/01/2008 (cost
$1,120,817)................................. A- 1,250,000 1,115,864
------------
YANKEE OBLIGATIONS-GOVERNMENT - 0.6%
Ontario, Canada, 7.75%, 06/04/2002 (cost
$4,118,161)................................. AA- 3,836,000 3,875,449
------------
<CAPTION>
Shares Value
<S> <C> <C> <C>
COMMON STOCKS - 52.4%
CONSUMER DISCRETIONARY - 4.8%
Media - 0.3%
Omnicom Group, Inc. ................................. 20,600 1,834,687
------------
Multi-line Retail - 2.1%
Family Dollar Stores, Inc............................ 186,190 3,642,342
Wal-Mart Stores, Inc................................. 152,270 8,774,559
------------
12,416,901
------------
Specialty Retail - 2.4%
Best Buy Co., Inc. *................................. 72,310 4,573,608
Home Depot, Inc...................................... 133,385 6,660,913
RadioShack Corp...................................... 67,800 3,212,025
------------
14,446,546
------------
CONSUMER STAPLES - 4.3%
Beverages - 1.6%
Anheuser Busch Cos., Inc............................. 62,725 4,684,773
Pepsico, Inc......................................... 117,975 5,242,514
------------
9,927,287
------------
Food Products - 0.7%
Quaker Oats Co....................................... 54,900 4,124,363
------------
</TABLE>

47
<PAGE>

EVERGREEN
Select Balanced Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - continued
CONSUMER STAPLES - continued
Personal Products - 1.3%
Colgate-Palmolive Co. ................................... 59,400 $ 3,556,575
Kimberly-Clark Corp...................................... 69,285 3,975,227
------------
7,531,802
------------
Tobacco - 0.7%
Philip Morris Cos., Inc.................................. 166,050 4,410,703
------------
ENERGY - 0.8%
Oil & Gas - 0.8%
Tosco Corp............................................... 159,500 4,515,844
------------
FINANCIALS - 1.5%
Diversified Financials - 1.0%
American Express Co...................................... 13,830 720,889
Citigroup, Inc........................................... 87,395 5,265,548
------------
5,986,437
------------
Insurance - 0.5%
American International Group, Inc........................ 25,900 3,043,250
------------
HEALTH CARE - 6.7%
Health Care Providers & Services - 0.7%
HCA-The Healthcare Corp.................................. 133,050 4,041,394
------------
Pharmaceuticals - 6.0%
Johnson & Johnson........................................ 91,230 9,294,056
Pfizer, Inc.............................................. 413,763 19,860,624
Schering-Plough Corp..................................... 146,800 7,413,400
------------
36,568,080
------------
INDUSTRIALS - 4.3%
Commercial Services & Supplies - 0.6%
McGraw-Hill Cos., Inc.................................... 70,650 3,815,100
------------
Industrial Conglomerates - 3.7%
General Electric Co...................................... 421,935 22,362,555
------------
INFORMATION TECHNOLOGY - 29.5%
Communications Equipment - 9.8%
Advanced Fibre Communications, Inc. ..................... 96,300 4,363,594
Brocade Communications Systems, Inc...................... 23,150 4,247,663
CIENA Corp. *............................................ 11,335 1,889,403
Cisco Systems, Inc. *.................................... 273,535 17,386,568
Commscope, Inc. ......................................... 111,750 4,581,750
Emulex Corp. ............................................ 61,735 4,055,218
Extreme Networks, Inc. .................................. 65,345 6,893,897
Juniper Networks, Inc. .................................. 19,750 2,874,859
Nortel Networks Corp. ................................... 78,830 5,380,148
</TABLE>

48
<PAGE>

EVERGREEN
Select Balanced Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - continued
INFORMATION TECHNOLOGY - continued
Communications Equipment - continued
Powerwave Technologies, Inc. *........................... 108,850 $ 4,789,400
RF Micro Devices, Inc. *................................. 26,360 2,309,795
------------
58,772,295
------------
Computers & Peripherals - 4.4%
EMC Corp. *.............................................. 142,460 10,960,516
Hewlett-Packard Co....................................... 26,200 3,271,725
Network Appliance, Inc. *................................ 42,615 3,430,508
Sun Microsystems, Inc. *................................. 99,410 9,040,097
------------
26,702,846
------------
Electronic Equipment & Instruments - 1.1%
JDS Uniphase Corp. *..................................... 54,600 6,545,175
------------
Internet Software & Services - 1.4%
Broadvision, Inc. *...................................... 76,745 3,899,606
Yahoo!, Inc. *........................................... 35,550 4,403,756
------------
8,303,362
------------
Semiconductor Equipment & Products - 6.8%
Analog Devices, Inc. *................................... 21,675 1,647,300
Applied Micro Circuits Corp. *........................... 44,250 4,369,688
Conexant Systems, Inc. *................................. 110,315 5,364,067
Integrated Device Technology............................. 82,625 4,947,172
LSI Logic Corp. *........................................ 133,050 7,201,331
Micrel, Inc.............................................. 79,050 3,433,734
National Semiconductor Corp. *........................... 69,575 3,948,381
PMC-Sierra, Inc. *....................................... 16,715 2,970,047
SDL, Inc. *.............................................. 9,775 2,787,708
Texas Instruments, Inc................................... 65,490 4,498,344
------------
41,167,772
------------
Software - 6.0%
Business Objects SA, ADR *............................... 35,350 3,115,219
Macromedia, Inc.......................................... 1,675 161,952
Mercury Interactive Corp. *.............................. 100,358 9,709,636
Microsoft Corp. *........................................ 105,615 8,449,200
Remedy Corp. *........................................... 171,615 9,567,536
Siebel Systems, Inc. *................................... 31,890 5,216,008
------------
36,219,551
------------
UTILITIES - 0.5%
Electric Utilities - 0.5%
Duke Energy Corp......................................... 52,900 2,982,237
------------
Total Common Stocks (cost $242,397,466)................ 315,718,187
------------
</TABLE>

49
<PAGE>

EVERGREEN
Select Balanced Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
SHORT-TERM INVESTMENTS - 3.8%
REPURCHASE AGREEMENTS - 3.8%
Dresdner Bank AG
6.40%, dated 6/30/2000, due 7/3/2000, maturity
value $22,993,566 (cost $22,981,309) (1)........ $22,981,309 $ 22,981,309
------------
Total Investments - (cost $543,963,968) - 101.0%............... 608,726,623
Other Assets and Liabilities - (1.0%).......................... (6,234,243)
------------
Net Assets - 100.0%............................................ $602,492,380
------------
</TABLE>

See Combined Notes to Schedules of Investments.

50
<PAGE>

EVERGREEN
Select Core Equity Fund
Schedule of Investments
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 97.2%
CONSUMER DISCRETIONARY - 8.1%
Auto Components - 0.0%
Visteon Corp. ......................................... 64,811 $ 785,833
--------------
Automobiles - 0.9%
Ford Motor Co. ........................................ 495,000 21,285,000
--------------
Household Durables - 0.3%
Whirlpool Corp. ....................................... 160,000 7,460,000
--------------
Media - 0.7%
Time Warner, Inc. ..................................... 215,000 16,340,000
--------------
Multi-line Retail - 3.0%
Family Dollar Stores, Inc. ............................ 600,000 11,737,500
Sears, Roebuck & Co. .................................. 140,000 4,567,500
Target Corp. .......................................... 315,000 18,270,000
Wal-Mart Stores, Inc. ................................. 725,000 41,778,125
--------------
76,353,125
--------------
Specialty Retail - 3.0%
Ann Taylor Stores Corp. *.............................. 325,000 10,765,625
Best Buy Co., Inc. *................................... 140,000 8,855,000
Home Depot, Inc. ...................................... 790,000 39,450,625
Lowe's Companies, Inc. ................................ 260,000 10,676,250
Toys "R" Us, Inc. *.................................... 500,000 7,281,250
--------------
77,028,750
--------------
Textiles & Apparel - 0.2%
Liz Claiborne, Inc. ................................... 170,000 5,992,500
--------------
CONSUMER STAPLES - 7.1%
Beverages - 3.0%
Coca Cola Co. ......................................... 820,000 47,098,750
Pepsico, Inc. ......................................... 650,000 28,884,375
--------------
75,983,125
--------------
Food & Drug Retailing - 1.2%
Kroger Co. *........................................... 240,000 5,295,000
Safeway, Inc. *........................................ 300,000 13,537,500
SYSCO Corp. ........................................... 260,000 10,952,500
--------------
29,785,000
--------------
Food Products - 1.4%
Bestfoods.............................................. 190,000 13,157,500
Ralston Purina Co. .................................... 500,000 9,968,750
Sara Lee Corp. ........................................ 640,000 12,360,000
--------------
35,486,250
--------------
Household Products - 0.4%
Procter & Gamble Co. .................................. 175,000 10,018,750
--------------
</TABLE>

51
<PAGE>

EVERGREEN
Select Core Equity Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - continued
CONSUMER STAPLES - continued
Personal Products - 1.1%
Colgate-Palmolive Co. ................................. 170,000 $ 10,178,750
Kimberly-Clark Corp. .................................. 340,000 19,507,500
--------------
29,686,250
--------------
ENERGY - 5.5%
Energy Equipment & Services - 1.5%
Diamond Offshore Drilling, Inc. ....................... 180,000 6,322,500
Halliburton Co. ....................................... 300,000 14,156,250
Schlumberger, Ltd. .................................... 125,000 9,328,125
Transocean Sedco Forex, Inc. .......................... 171,944 9,188,258
--------------
38,995,133
--------------
Oil & Gas - 4.0%
Chevron Corp. ......................................... 180,000 15,266,250
Conoco, Inc., Class A.................................. 600,000 13,200,000
Exxon Mobil Corp. ..................................... 540,000 42,390,000
Tosco Corp. ........................................... 295,000 8,352,188
Total SA, ADR.......................................... 155,000 11,905,937
Ultramar Diamond Shamrock Corp. ....................... 425,000 10,545,312
--------------
101,659,687
--------------
FINANCIALS - 11.3%
Banks - 3.2%
Bank of America Corp. ................................. 535,000 23,005,000
Chase Manhattan Corp. ................................. 592,500 27,292,031
FleetBoston Financial Corp. ........................... 650,710 22,124,140
U.S. Bancorp........................................... 510,000 9,817,500
--------------
82,238,671
--------------
Diversified Financials - 3.5%
Citigroup, Inc. ....................................... 525,000 31,631,250
Federal Home Loan Mortgage Assn. ...................... 215,000 8,707,500
Franklin Resources, Inc. .............................. 300,000 9,112,500
Merrill Lynch & Co., Inc. ............................. 105,000 12,075,000
Morgan Stanley, Dean Witter & Co. ..................... 320,000 26,640,000
--------------
88,166,250
--------------
Insurance - 4.2%
Allmerica Financial Corp. ............................. 170,000 8,903,750
Allstate Corp. ........................................ 600,000 13,350,000
American International Group, Inc. .................... 268,750 31,578,125
Hartford Financial Services Group, Inc. ............... 220,000 12,306,250
Loews Corp. ........................................... 150,000 9,000,000
MGIC Investment Corp. ................................. 220,000 10,010,000
</TABLE>

52
<PAGE>

EVERGREEN
Select Core Equity Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - continued
FINANCIALS - continued
Insurance - continued
Radian Group, Inc. .................................. 205,000 $ 10,608,750
XL Capital Ltd., Class A............................. 190,000 10,283,750
--------------
106,040,625
--------------
Real Estate - 0.4%
FelCor Lodging Trust, Inc., REIT..................... 280,000 5,180,000
Simon Property Group Inc. REIT....................... 245,000 5,435,938
--------------
10,615,938
--------------
HEALTH CARE - 11.8%
Biotechnology - 1.5%
Amgen, Inc. *........................................ 540,000 37,935,000
--------------
Health Care Equipment & Supplies - 1.2%
Boston Scientific Corp. *............................ 270,000 5,923,125
Guidant Corp. *...................................... 145,000 7,177,500
Medtronic, Inc. ..................................... 370,000 18,430,625
--------------
31,531,250
--------------
Health Care Providers & Services - 0.8%
Lincare Holdings, Inc. *............................. 355,000 8,741,875
Tenet Healthcare Corp. *............................. 425,000 11,475,000
--------------
20,216,875
--------------
Pharmaceuticals - 8.3%
Abbott Laboratories.................................. 625,000 27,851,562
Bristol-Myers Squibb Co. ............................ 665,000 38,736,250
Johnson & Johnson.................................... 230,200 23,451,625
Mylan Laboratories, Inc. ............................ 100,000 1,825,000
Pfizer, Inc. ........................................ 1,348,750 64,740,000
Schering-Plough Corp. ............................... 650,000 32,825,000
SmithKline Beecham, Plc, ADR......................... 130,000 8,474,375
Teva Pharmaceutical Industries, Ltd., ADR............ 210,000 11,641,875
--------------
209,545,687
--------------
INDUSTRIALS - 9.6%
Air Freight & Couriers - 0.2%
CNF Transportation, Inc. ............................ 225,000 5,118,750
--------------
Commercial Services & Supplies - 0.1%
Cendant Corp. *...................................... 165,000 2,310,000
--------------
Industrial Conglomerates - 7.5%
General Electric Co. ................................ 3,250,000 172,250,000
Honeywell International, Inc. ....................... 395,000 13,306,563
Trinity Industries, Inc. ............................ 260,000 4,810,000
--------------
190,366,563
--------------
</TABLE>

53
<PAGE>

EVERGREEN
Select Core Equity Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - continued
INDUSTRIALS - continued
Machinery - 1.0%
Deere & Co. ......................................... 100,000 $ 3,700,000
Illinois Tool Works, Inc. ........................... 235,000 13,395,000
Tower Automotive, Inc. *............................. 600,000 7,500,000
--------------
24,595,000
--------------
Road & Rail - 0.8%
Canadian National Railway Co. ....................... 350,000 10,215,625
Kansas City Southern Industries, Inc. ............... 120,000 10,642,500
--------------
20,858,125
--------------
INFORMATION TECHNOLOGY - 30.8%
Communications Equipment - 9.1%
Adaptec, Inc. *...................................... 160,000 3,640,000
Cisco Systems, Inc. *................................ 2,410,020 153,186,896
Commscope, Inc. ..................................... 227,500 9,327,500
Comverse Technology, Inc. *.......................... 120,000 11,160,000
Lucent Technologies, Inc. ........................... 500,000 29,625,000
Nokia Corp., ADR..................................... 200,000 9,987,500
Tellabs, Inc. *...................................... 210,000 14,371,875
--------------
231,298,771
--------------
Computers & Peripherals - 6.4%
Compaq Computer Corp. ............................... 1,040,000 26,585,000
Dell Computer Corp. *................................ 900,000 44,381,250
EMC Corp. *.......................................... 352,000 27,082,000
International Business Machines Corp. ............... 594,000 65,080,125
--------------
163,128,375
--------------
Electronic Equipment & Instruments - 0.2%
Rockwell International Corp. ........................ 160,000 5,040,000
--------------
Internet Software & Services - 0.8%
America Online, Inc. *............................... 400,000 21,100,000
--------------
Semiconductor Equipment & Products - 6.3%
Applied Materials, Inc. *............................ 320,000 29,000,000
Applied Micro Circuits Corp. *....................... 110,000 10,862,500
Intel Corp. ......................................... 865,000 115,639,688
Teradyne, Inc. *..................................... 50,000 3,675,000
--------------
159,177,188
--------------
Software - 8.0%
Computer Associates International, Inc. ............. 430,000 22,010,625
Compuware Corp. *.................................... 330,000 3,423,750
Microsoft Corp. *.................................... 1,140,600 91,248,000
Network Associates, Inc. *........................... 340,000 6,927,500
</TABLE>

54
<PAGE>

EVERGREEN
Select Core Equity Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - continued
INFORMATION TECHNOLOGY - continued
Software - continued
Oracle Systems Corp. *................................. 820,000 $ 68,931,250
Veritas Software Corp. *............................... 80,000 9,041,250
--------------
201,582,375
--------------
MATERIALS - 3.1%
Chemicals - 1.2%
Cytec Industries, Inc. *............................... 280,000 6,912,500
DuPont (E.I.) De Nemours & Co. ........................ 540,800 23,660,000
--------------
30,572,500
--------------
Containers & Packaging - 0.5%
Sealed Air Corp. * .................................... 210,000 10,998,750
--------------
Metals & Mining - 1.0%
AK Steel Holding Corp. ................................ 555,000 4,440,000
Alcoa, Inc. ........................................... 600,000 17,400,000
USX United States Steel Group.......................... 225,000 4,176,563
--------------
26,016,563
--------------
Paper & Forest Products - 0.4%
Bowater, Inc. ......................................... 240,000 10,590,000
--------------
TELECOMMUNICATION SERVICES - 8.0%
Diversified Telecommunication Services - 7.8%
AT&T Corp. ............................................ 435,000 13,756,875
Bell Atlantic Corp. ................................... 550,000 27,946,875
Centurytel, Inc. ...................................... 295,000 8,481,250
GTE Corp. ............................................. 444,000 27,639,000
SBC Communications, Inc. .............................. 600,000 25,950,000
Sprint Corp. .......................................... 200,000 10,200,000
Telephone & Data Systems, Inc. ........................ 95,000 9,523,750
U.S. West, Inc. ....................................... 350,000 30,012,500
WorldCom, Inc. ........................................ 965,000 44,269,375
--------------
197,779,625
--------------
Wireless Telecommunications Services - 0.2%
Western Wireless Corp., Class A........................ 95,000 5,177,500
--------------
UTILITIES - 1.9%
Electric Utilities - 0.7%
AES Corp. *............................................ 200,000 9,125,000
CMS Energy Corp. ...................................... 390,000 8,628,750
--------------
17,753,750
--------------
Gas Utilities - 1.2%
Enron Corp. ........................................... 465,000 29,992,500
--------------
Total Common Stocks (cost $1,600,489,000)............ 2,466,606,034
--------------
UNIT INVESTMENT TRUST - 0.0%
S&P 500 Depositary Receipt (Spiders) (cost $723,584)... 4,900 711,878
--------------
</TABLE>

55
<PAGE>

EVERGREEN
Select Core Equity Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 0.1%
U.S. Treasury Bills, 5.64%, 09/14/2000 (cost
$1,482,854)....................................... $1,500,000 $ 1,482,854
--------------
SHORT-TERM INVESTMENTS - 2.7%
REPURCHASE AGREEMENTS - 2.4%
Dresdner Bank AG
6.40%, dated 6/30/2000, due 7/3/2000, maturity
value $60,624,818 (cost $60,592,502) (2).......... 60,592,502 60,592,502
--------------
<CAPTION>
Shares Value
<S> <C> <C>
MUTUAL FUND SHARES - 0.3%
Valiant General Fund (cost $8,889,276)............. 8,889,276 8,889,276
--------------
Total Cash Equivalents (cost $69,481,778)........ 69,481,778
--------------
Total Investments - (cost $1,672,177,216) - 100.0%.............. 2,538,282,544
Other Assets and Liabilities - 0.0%............................. 312,720
--------------
Net Assets - 100.0%............................................. $2,538,595,264
--------------
</TABLE>

See Combined Notes to Schedules of Investments.

56
<PAGE>

EVERGREEN
Select Diversified Value Fund
Schedule of Investments
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - 98.5%
CONSUMER DISCRETIONARY - 9.9%
Auto Components - 0.0%
Visteon Corp............................................. 12,205 $ 147,986
------------
Automobiles - 0.8%
Ford Motor Co. .......................................... 93,218 4,008,374
------------
Hotels, Restaurants & Leisure - 0.9%
Harrahs Entertainment, Inc. *............................ 107,614 2,253,168
Tricon Global Restaurants, Inc. *........................ 80,195 2,265,509
------------
4,518,677
------------
Household Durables - 0.3%
Pulte Corp. ............................................. 56,065 1,212,406
------------
Internet & Catalog Retail - 0.6%
CDW Computer Centers, Inc. *............................. 48,692 3,043,250
------------
Media - 3.8%
AMFM, Inc. *............................................. 62,466 4,310,154
Interpublic Group of Companies, Inc...................... 47,391 2,037,813
Seagram Co., Ltd......................................... 88,016 5,104,928
Time Warner, Inc......................................... 54,775 4,162,900
USA Networks, Inc. *..................................... 122,226 2,643,137
------------
18,258,932
------------
Multi-line Retail - 2.1%
Target Corp.............................................. 51,639 2,995,062
Wal-Mart Stores, Inc..................................... 121,045 6,975,218
------------
9,970,280
------------
Specialty Retail - 1.4%
Circuit City Stores, Inc................................. 59,359 1,969,977
Home Depot, Inc.......................................... 25,403 1,268,562
Lowe's Companies, Inc.................................... 85,205 3,498,730
------------
6,737,269
------------
CONSUMER STAPLES - 7.0%
Beverages - 2.1%
Adolph Coors Co. ........................................ 21,434 1,296,757
Anheuser Busch Cos., Inc................................. 66,658 4,978,519
Pepsico, Inc............................................. 86,393 3,839,089
------------
10,114,365
------------
Food & Drug Retailing - 1.4%
SYSCO Corp............................................... 165,714 6,980,702
------------
Food Products - 1.8%
Conagra, Inc. ........................................... 57,984 1,105,320
General Mills, Inc....................................... 54,086 2,068,790
McCormick & Co., Inc. ................................... 57,274 1,861,405
Nabisco Group Holding Corp............................... 136,957 3,552,322
------------
8,587,837
------------
</TABLE>

57
<PAGE>

EVERGREEN
Select Diversified Value Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - continued
CONSUMER STAPLES - continued
Health Care Equipment & Supplies - 0.2%
SuperValu, Inc........................................... 55,229 $ 1,052,803
------------
Personal Products - 1.5%
Colgate-Palmolive Co. ................................... 43,782 2,621,447
Kimberly-Clark Corp...................................... 78,651 4,512,601
------------
7,134,048
------------
ENERGY - 8.6%
Energy Equipment & Services - 0.7%
Rowan Companies, Inc. *.................................. 113,362 3,443,371
------------
Oil & Gas - 7.9%
Amerada Hess Corp........................................ 43,373 2,678,283
Anadarko Petroleum Corp.................................. 225,495 11,119,722
Apache Corp.............................................. 95,201 5,599,009
Exxon Mobil Corp......................................... 63,359 4,973,682
Kerr-McGee Corp.......................................... 129,836 7,652,209
Occidental Petroleum Corp................................ 50,885 1,071,765
Phillips Petroleum Co.................................... 66,453 3,368,336
Tosco Corp............................................... 55,569 1,573,297
------------
38,036,303
------------
FINANCIALS - 14.6%
Banks - 4.0%
Firstar Corp. ........................................... 173,428 3,652,827
FleetBoston Financial Corp............................... 72,521 2,465,714
J.P. Morgan & Co., Inc................................... 27,852 3,067,202
SouthTrust Corp.......................................... 304,080 6,879,810
Wells Fargo Co........................................... 88,674 3,436,117
------------
19,501,670
------------
Diversified Financials - 7.3%
Bear Stearns Companies, Inc.............................. 26,897 1,119,588
Citigroup, Inc........................................... 209,878 12,645,149
Federal National Mortgage Assn........................... 28,802 1,503,104
Goldman Sachs Group, Inc................................. 90,912 8,625,276
Lehman Brothers Holdings, Inc............................ 53,301 5,040,276
Morgan Stanley, Dean Witter & Co. ....................... 56,255 4,683,229
Providian Financial Corp................................. 17,379 1,564,110
------------
35,180,732
------------
Insurance - 3.3%
Allmerica Financial Corp................................. 58,636 3,071,061
American International Group, Inc........................ 91,101 10,704,367
Loews Corp............................................... 20,580 1,234,800
MGIC Investment Corp. ................................... 21,413 974,292
------------
15,984,520
------------
</TABLE>

58
<PAGE>

EVERGREEN
Select Diversified Value Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - continued
HEALTH CARE - 12.6%
Biotechnology - 1.7%
Amgen, Inc. *............................................ 30,052 $ 2,111,153
Chiron Corp.............................................. 46,239 2,196,352
Genetech, Inc............................................ 12,838 2,208,136
MedImmune, Inc. *........................................ 20,652 1,528,248
------------
8,043,889
------------
Health Care Equipment & Supplies - 2.9%
Bausch & Lomb, Inc....................................... 46,257 3,579,135
Biomet, Inc. ............................................ 91,029 3,498,927
C.R. Bard, Inc........................................... 101,738 4,896,141
PE Corp-PE Biosystems Group.............................. 31,804 2,095,089
------------
14,069,292
------------
Health Care Providers & Services - 1.9%
Cardinal Health, Inc..................................... 64,626 4,782,324
HCA-The Healthcare Corp.................................. 42,249 1,283,313
UnitedHealth Group, Inc.................................. 22,274 1,909,996
Wellpoint Health Networks, Inc., Class A *............... 19,040 1,379,210
------------
9,354,843
------------
Pharmaceuticals - 6.1%
Elan Corp. Plc., ADR *................................... 32,491 1,573,783
Johnson & Johnson........................................ 46,085 4,694,909
Merck & Co., Inc......................................... 47,643 3,650,645
Pfizer, Inc.............................................. 354,425 17,012,400
Teva Pharmaceutical Industries, Ltd., ADR................ 45,780 2,537,929
------------
29,469,666
------------
INDUSTRIALS - 9.6%
Aerospace & Defense - 1.4%
B.F. Goodrich Co......................................... 32,029 1,090,988
General Dynamics Corp.................................... 61,479 3,212,277
Lockheed Martin Corp. ................................... 44,038 1,092,693
Northrop Grumman Corp.................................... 19,308 1,279,155
------------
6,675,113
------------
Commercial Services & Supplies - 1.4%
Computer Sciences Corp. *................................ 58,763 4,388,862
McGraw-Hill Cos., Inc.................................... 45,780 2,472,120
------------
6,860,982
------------
Electrical Equipment - 0.9%
Emerson Electric Co...................................... 68,138 4,113,832
------------
</TABLE>

59
<PAGE>

EVERGREEN
Select Diversified Value Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - continued
INDUSTRIALS - continued
Industrial Conglomerates - 4.8%
Dover Corp............................................... 65,643 $ 2,662,644
General Electric Co...................................... 325,833 17,269,149
Tyco International, Ltd.................................. 67,306 3,188,622
------------
23,120,415
------------
Road & Rail - 1.1%
Kansas City Southern Industries, Inc..................... 60,479 5,363,731
------------
INFORMATION TECHNOLOGY - 26.8%
Communications Equipment - 6.0%
Cisco Systems, Inc. *.................................... 199,268 12,665,972
Commscope, Inc........................................... 27,167 1,113,847
Corning, Inc............................................. 15,289 4,126,119
Ericsson LM Telephone Co., Class B, ADR.................. 187,089 3,741,780
Nokia Corp., ADR......................................... 115,986 5,792,051
Scientific Atlanta, Inc.................................. 18,080 1,346,960
------------
28,786,729
------------
Computers & Peripherals - 2.7%
Apple Computer *......................................... 40,538 2,123,178
Compaq Computer Corp..................................... 265,085 6,776,235
EMC Corp. *.............................................. 38,980 2,999,024
International Business Machines Corp..................... 11,699 1,281,771
------------
13,180,208
------------
Electronic Equipment & Instruments - 1.5%
Flextronics International, Ltd........................... 25,151 1,727,559
SCI Systems, Inc. *...................................... 38,020 1,489,909
Solectron Corp. *........................................ 90,431 3,786,798
------------
7,004,266
------------
Internet Software & Services - 1.2%
America Online, Inc. *................................... 62,896 3,317,764
Ariba, Inc............................................... 15,682 1,537,571
Yahoo!, Inc. *........................................... 7,116 881,495
------------
5,736,830
------------
Semiconductor Equipment & Products - 7.8%
Advanced Micro Devices, Inc. *........................... 25,352 1,958,442
Applied Materials, Inc. *................................ 21,702 1,966,744
Intel Corp............................................... 21,558 2,882,035
KLA-Tencor Corp. *....................................... 39,236 2,297,758
LSI Logic Corp. *........................................ 48,834 2,643,140
Micron Technology, Inc................................... 35,549 3,130,534
National Semiconductor Corp. *........................... 37,970 2,154,798
Novellus Systems, Inc. *................................. 36,989 2,092,190
</TABLE>

60
<PAGE>

EVERGREEN
Select Diversified Value Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - continued
INFORMATION TECHNOLOGY - continued
Semiconductor Equipment & Products - continued
PMC-Sierra, Inc. *....................................... 10,258 $ 1,822,718
Teradyne, Inc. *......................................... 31,511 2,316,058
Texas Instruments, Inc. ................................. 161,883 11,119,339
Vitesse Semiconductor Corp. *............................ 13,875 1,020,680
Xilinx, Inc. *........................................... 27,673 2,284,752
------------
37,689,188
------------
Software - 6.5%
Informix Corp. .......................................... 141,214 1,050,279
Microsoft Corp. *........................................ 219,750 17,580,000
Oracle Systems Corp. *................................... 115,615 9,718,886
Remedy Corp. *........................................... 21,059 1,174,039
Siebel Systems, Inc. *................................... 12,497 2,044,041
------------
31,567,245
------------
Specialty Retail - 1.1%
ADC Telecommunications, Inc. *........................... 63,495 5,325,643
------------
MATERIALS - 2.6%
Chemicals - 0.8%
Dow Chemical Co. ........................................ 73,860 2,229,649
Millipore Corp. ......................................... 20,230 1,524,836
------------
3,754,485
------------
Metals & Mining - 1.4%
Alcoa, Inc. ............................................. 156,700 4,544,300
Worthington Industries, Inc. ............................ 233,700 2,453,850
------------
6,998,150
------------
Paper & Forest Products - 0.4%
Boise Cascade Corp. ..................................... 50,337 1,302,470
International Paper Co. ................................. 14,973 446,378
------------
1,748,848
------------
TELECOMMUNICATION SERVICES - 2.8%
Diversified Telecommunication Services - 2.8%
AT&T Corp. .............................................. 40,244 1,272,717
BellSouth Corp. ......................................... 71,175 3,033,834
GTE Corp. ............................................... 28,426 1,769,519
Winstar Communications, Inc. *........................... 44,022 1,491,245
WorldCom, Inc. .......................................... 124,726 5,721,805
------------
13,289,120
------------
UTILITIES - 4.0%
Electric Utilities - 3.1%
Entergy Corp. ........................................... 46,148 1,254,649
Florida Progress Corp. .................................. 23,973 1,123,734
</TABLE>

61
<PAGE>

EVERGREEN
Select Diversified Value Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS - continued
UTILITIES - continued
Electric Utilities - continued
GPU, Inc. ............................................ 42,191 $ 1,141,794
PECO Energy Co. ...................................... 150,979 6,086,341
Southern Co. ......................................... 117,717 2,744,278
TXU Corp. ............................................ 38,578 1,138,051
Unicom Corp. ......................................... 45,954 1,777,845
------------
15,266,692
------------
Gas Utilities - 0.9%
El Paso Energy Corp................................... 84,127 4,285,219
------------
Total Common Stocks (cost $406,538,663)............. 475,617,911
------------
<CAPTION>
Principal
Amount Value
</TABLE>

<TABLE>
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 0.1%
U.S. Treasury Bills:
5.64%, 07/06/2000.................................... $ 170,000 169,920
5.70%, 08/10/2000.................................... 450,000 447,293
------------
Total U.S. Treasury Obligations (cost $617,213)..... 617,213
------------
SHORT-TERM INVESTMENTS - 1.3%
REPURCHASE AGREEMENTS - 1.3%
Dresdner Bank AG
6.40%, dated 6/30/2000, due 7/3/2000, maturity value
$6,133,880
(cost $6,130,610) (3)................................ 6,130,610 6,130,610
------------
Total Investments - (cost $413,286,486) - 99.9%.................... 482,365,734
Other Assets and Liabilities - 0.1%................................ 478,630
------------
Net Assets - 100.0%................................................ $482,844,364
------------
</TABLE>

See Combined Notes to Schedules of Investments.

62
<PAGE>

EVERGREEN
Select Large Cap Blend Fund
Schedule of Investments
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - 98.3%
CONSUMER DISCRETIONARY - 7.8%
Auto Components - 0.0%
Visteon Corp. ....................................... 7,761 $ 94,102
------------
Automobiles - 0.9%
Ford Motor Co. ...................................... 59,280 2,549,040
------------
Media - 4.7%
News Corp, Ltd. ..................................... 59,830 3,260,735
Omnicom Group, Inc. ................................. 31,990 2,849,109
Time Warner, Inc. ................................... 92,250 7,011,000
------------
13,120,844
------------
Multi-line Retail - 1.6%
Target Corp. ........................................ 40,190 2,331,020
Wal-Mart Stores, Inc. ............................... 35,150 2,025,519
------------
4,356,539
------------
Specialty Retail - 0.6%
Lowe's Companies, Inc. .............................. 37,400 1,535,738
------------
CONSUMER STAPLES - 7.1%
Beverages - 2.8%
Anheuser Busch Cos., Inc. ........................... 51,720 3,862,838
Coca Cola Co. ....................................... 66,300 3,808,106
------------
7,670,944
------------
Food & Drug Retailing - 1.3%
Safeway, Inc. *...................................... 79,200 3,573,900
------------
Food Products - 1.4%
Nabisco Holdings Corp., Class A...................... 71,940 3,776,850
------------
Household Products - 0.4%
Procter & Gamble Co. ................................ 17,490 1,001,302
------------
Personal Products - 0.4%
Gillette Co. ........................................ 36,340 1,269,629
------------
Tobacco - 0.8%
Philip Morris Cos., Inc. ............................ 88,670 2,355,297
------------
ENERGY - 5.5%
Oil & Gas - 5.5%
Exxon Mobil Corp. ................................... 123,539 9,697,811
Texaco, Inc. ........................................ 78,910 4,201,958
Tosco Corp. ......................................... 52,180 1,477,346
------------
15,377,115
------------
</TABLE>

63
<PAGE>

EVERGREEN
Select Large Cap Blend Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
FINANCIALS - 15.0%
Banks - 4.5%
Bank of America Corp. ............................... 105,510 $ 4,536,930
FleetBoston Financial Corp. ......................... 154,185 5,242,290
Mellon Financial Corp. .............................. 77,930 2,839,574
------------
12,618,794
------------
Diversified Financials - 8.1%
Citigroup, Inc. ..................................... 159,410 9,604,453
Federal National Mortgage Assn. ..................... 102,950 5,372,703
Goldman Sachs Group, Inc. ........................... 16,710 1,585,361
Merrill Lynch & Co., Inc. ........................... 23,100 2,656,500
Providian Financial Corp. ........................... 15,770 1,419,300
Textron, Inc. ....................................... 32,780 1,780,364
------------
22,418,681
------------
Insurance - 2.4%
Allstate Corp. ...................................... 66,096 1,470,636
American International Group, Inc. .................. 43,255 5,082,462
------------
6,553,098
------------
HEALTH CARE - 13.1%
Biotechnology - 1.0%
Amgen, Inc. *........................................ 17,110 1,201,977
Genetech, Inc. p..................................... 9,810 1,687,320
------------
2,889,297
------------
Health Care Equipment & Supplies - 0.4%
PE Corp-PE Biosystems Group.......................... 14,850 978,244
------------
Health Care Providers & Services - 0.2%
McKesson HBOC, Inc. ................................. 20,900 437,594
------------
Pharmaceuticals - 11.5%
Bristol-Myers Squibb Co. ............................ 47,340 2,757,555
Johnson & Johnson.................................... 38,370 3,908,944
Merck & Co., Inc. ................................... 27,770 2,127,876
Pfizer, Inc. ........................................ 362,595 17,404,560
Pharmacia Corp. ..................................... 110,395 5,706,042
------------
31,904,977
------------
INDUSTRIALS - 8.0%
Aerospace & Defense - 1.6%
General Dynamics Corp. .............................. 51,160 2,673,110
Lockheed Martin Corp. ............................... 75,690 1,878,058
------------
4,551,168
------------
Commercial Services & Supplies - 0.4%
Electronic Data Systems Corp. ....................... 26,080 1,075,800
------------
</TABLE>

64
<PAGE>

EVERGREEN
Select Large Cap Blend Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
INDUSTRIALS - continued
Industrial Conglomerates - 5.6%
General Electric Co. ................................ 256,350 $ 13,586,550
Tyco International, Ltd. ............................ 38,440 1,821,095
------------
15,407,645
------------
Road & Rail - 0.4%
Burlington Northern Santa Fe Corp. .................. 47,490 1,089,302
------------
INFORMATION TECHNOLOGY - 31.9%
Communications Equipment - 6.4%
Cisco Systems, Inc. *................................ 200,628 12,752,417
Ericsson LM Telephone Co., Class B, ADR.............. 253,640 5,072,800
------------
17,825,217
------------
Computers & Peripherals - 8.9%
Compaq Computer Corp. ............................... 244,570 6,251,821
EMC Corp. *.......................................... 211,680 16,286,130
International Business Machines Corp. ............... 19,280 2,112,365
------------
24,650,316
------------
Electronic Equipment & Instruments - 0.6%
Flextronics International, Ltd. p ................... 23,210 1,594,237
------------
Internet Software & Services - 3.0%
America Online, Inc. *............................... 90,980 4,799,195
Ariba, Inc. ......................................... 9,940 974,586
Commerce One, Inc. p ................................ 24,860 1,128,411
Inktomi Corp. p ..................................... 12,540 1,482,855
------------
8,385,047
------------
Semiconductor Equipment & Products - 8.0%
Applied Materials, Inc. *............................ 13,920 1,261,500
Intel Corp. ......................................... 59,292 7,926,599
KLA-Tencor Corp. *................................... 51,160 2,996,058
LSI Logic Corp. *.................................... 54,020 2,923,833
PMC-Sierra, Inc. *................................... 9,590 1,704,023
Texas Instruments, Inc. ............................. 77,960 5,354,877
------------
22,166,890
------------
Software - 5.0%
Microsoft Corp. *.................................... 141,280 11,302,400
Siebel Systems, Inc. *............................... 15,400 2,518,862
------------
13,821,262
------------
MATERIALS - 1.6%
Metals & Mining - 1.4%
Alcoa, Inc. ......................................... 136,320 3,953,280
------------
</TABLE>

65
<PAGE>

EVERGREEN
Select Large Cap Blend Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
MATERIALS - continued
Paper & Forest Products - 0.2%
International Paper Co. .......................... 17,860 $ 532,451
------------
TELECOMMUNICATION SERVICES - 7.3%
Diversified Telecommunication Services - 6.3%
Global Crossing, Ltd. *........................... 21,970 578,086
GTE Corp. ........................................ 62,260 3,875,685
Qwest Communications International, Inc. *#....... 71,285 3,541,973
WorldCom, Inc. ................................... 208,019 9,542,871
------------
17,538,615
------------
Wireless Telecommunications Services - 1.0%
Nextel Communications, Inc., Class A *............ 41,908 2,564,246
------------
UTILITIES - 1.0%
Electric Utilities - 1.0%
Duke Energy Corp. ................................ 51,303 2,892,207
------------
Total Common Stocks (cost $198,149,770)......... 272,529,668
------------
<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 1.7%
U.S. Treasury Notes, 6.00 - 8.125%, 7/31/2001 -
2/15/2026 (cost $4,896,825) ##.................. $4,896,825 4,896,825
------------
SHORT-TERM INVESTMENTS - 3.4%
REPURCHASE AGREEMENTS - 1.7%
Dresdner Bank AG
6.40%, dated 6/30/2000, due 7/3/2000, maturity
value $4,763,602 (cost $4,761,063) (4)........... 4,761,063 4,761,063
------------
<CAPTION>
Shares Value
<S> <C> <C>
MUTUAL FUND SHARES - 1.7%
Navigator Prime Portfolio (cost $4,798,940) ##.... 4,798,940 4,798,940
------------
Total Cash Equivalents (cost $9,560,003)........ 9,560,003
------------
Total Investments - (cost $212,606,598) - 103.4%............... 286,986,496
Other Assets and Liabilities - (3.4%).......................... (9,658,263)
------------
Net Assets - 100.0%............................................ $277,328,233
------------
</TABLE>

See Combined Notes to Schedules of Investments.

66
<PAGE>

EVERGREEN
Select Secular Growth Fund
Schedule of Investments
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - 94.7%
CONSUMER DISCRETIONARY - 10.2%
Media - 4.8%
Comcast Corp., Class A.............................. 322,500 $ 13,061,250
Cox Communications, Inc., Class A *................. 268,800 12,247,200
Viacom, Inc., Class B *............................. 280,000 19,092,500
------------
44,400,950
------------
Multi-line Retail - 2.5%
Target Corp. ....................................... 139,800 8,108,400
Wal-Mart Stores, Inc. .............................. 252,000 14,521,500
------------
22,629,900
------------
Specialty Retail - 2.9%
Best Buy Co., Inc. *................................ 234,000 14,800,500
Home Depot, Inc. ................................... 238,000 11,885,125
------------
26,685,625
------------
CONSUMER STAPLES - 7.3%
Beverages - 3.8%
Anheuser Busch Cos., Inc. .......................... 218,000 16,281,875
Pepsico, Inc. ...................................... 417,500 18,552,656
------------
34,834,531
------------
Food Products - 1.4%
Hershey Foods Corp. ................................ 277,374 13,452,639
------------
Personal Products - 2.1%
Colgate-Palmolive Co. .............................. 321,000 19,219,875
------------
FINANCIALS - 12.4%
Banks - 3.2%
Chase Manhattan Corp. .............................. 177,000 8,153,063
Northern Trust Corp. ............................... 185,000 12,036,562
The Bank of New York Co., Inc. ..................... 205,500 9,555,750
------------
29,745,375
------------
Diversified Financials - 6.6%
American Express Co. ............................... 333,249 17,370,604
Brentwood Associates IV [_]......................... 1,000,000 971
Brentwood Associates VI [_]......................... 1,000,000 2,096,060
Goldman Sachs Group, Inc. .......................... 142,355 13,505,930
Morgan Stanley, Dean Witter & Co. .................. 169,000 14,069,250
Schwab (Charles) & Co., Inc. ....................... 402,150 13,522,294
------------
60,565,109
------------
Insurance - 2.6%
American International Group, Inc. ................. 148,642 17,465,435
CIGNA Corp. ........................................ 69,023 6,453,651
------------
23,919,086
------------
</TABLE>

67
<PAGE>

EVERGREEN
Select Secular Growth Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
FINANCIALS - continued
Real Estate - 0.0%
Franklin Capital Associates, LP [_]................. 500,000 $ 31,684
------------
HEALTH CARE - 6.9%
Biotechnology - 1.8%
Amgen, Inc. *....................................... 238,500 16,754,625
------------
Health Care Equipment & Supplies - 2.3%
Medtronic, Inc. .................................... 237,324 11,821,702
PE Corp-PE Biosystems Group......................... 139,000 9,156,625
------------
20,978,327
------------
Pharmaceuticals - 2.8%
Johnson & Johnson................................... 157,500 16,045,312
Pfizer, Inc. ....................................... 195,000 9,360,000
------------
25,405,312
------------
INDUSTRIALS - 6.3%
Commercial Services & Supplies - 2.0%
Bea Systems, Inc. .................................. 378,916 18,732,660
------------
Construction & Engineering - 2.3%
Metromedia Fiber Network, Inc., Class A............. 532,130 21,118,909
------------
Industrial Conglomerates - 2.0%
General Electric Co. ............................... 342,000 18,126,000
------------
INFORMATION TECHNOLOGY - 45.6%
Communications Equipment - 12.8%
Brocade Communications Systems, Inc. ............... 104,500 19,174,117
Cisco Systems, Inc. *............................... 229,410 14,581,873
Juniper Networks, Inc. ............................. 149,700 21,790,707
Nokia Corp., ADR.................................... 332,100 16,584,244
Redback Networks, Inc. ............................. 67,000 11,926,000
Research In Motion, Ltd. ........................... 395,757 17,908,004
RF Micro Devices, Inc. *............................ 180,000 15,772,500
------------
117,737,445
------------
Computers & Peripherals - 4.6%
EMC Corp. *......................................... 167,100 12,856,256
Gateway, Inc. *..................................... 268,300 15,226,025
Sun Microsystems, Inc. *............................ 155,000 14,095,313
------------
42,177,594
------------
Electronic Equipment & Instruments - 3.0%
E-Tek Dynamics, Inc................................. 45,900 12,108,994
JDS Uniphase Corp. *................................ 126,500 15,164,187
------------
27,273,181
------------
</TABLE>

68
<PAGE>

EVERGREEN
Select Secular Growth Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
INFORMATION TECHNOLOGY - continued
Internet & Catalog Retail - 0.3%
Coolsavings.Com, Inc. ............................. 383,700 $ 2,326,181
------------
Internet Software & Services - 12.1%
Art Technology Group, Inc. *....................... 181,087 18,278,469
Broadvision, Inc. *................................ 313,400 15,924,637
Exodus Communications, Inc. ....................... 360,800 16,619,350
Inktomi Corp. ..................................... 149,325 17,657,681
Intertrust Technologies Corp. ..................... 571,100 11,743,244
Lifeminders, Inc. ................................. 360,700 10,663,194
National Information Consortium, Inc. ............. 91,162 1,036,968
VeriSign, Inc. .................................... 111,000 19,591,500
------------
111,515,043
------------
Semiconductor Equipment & Products - 5.5%
Applied Micro Circuits Corp. *..................... 199,000 19,651,250
Broadcom Corp. *................................... 89,000 19,485,437
Texas Instruments, Inc. ........................... 168,000 11,539,500
------------
50,676,187
------------
Software - 7.3%
Intuit, Inc. *..................................... 235,100 9,727,263
Oracle Systems Corp. *............................. 223,000 18,745,937
Veritas Software Corp. *........................... 148,844 16,821,698
Vitria Technology, Inc. *.......................... 360,200 22,017,225
------------
67,312,123
------------
TELECOMMUNICATION SERVICES - 6.0%
Diversified Telecommunication Services - 6.0%
Global Crossing, Ltd. *............................ 459,444 12,089,120
Level 3 Communications, Inc. ...................... 202,500 17,820,000
Williams Communications Group...................... 436,100 14,473,069
WorldCom, Inc. .................................... 224,700 10,308,113
------------
54,690,302
------------
Total Common Stocks (cost $683,209,907).......... 870,308,663
------------
<CAPTION>
Principal
Amount Value
<S> <C> <C>
SHORT-TERM INVESTMENTS - 7.9%
REPURCHASE AGREEMENTS - 7.9%
Dresdner Bank AG
6.40%, dated 6/30/2000, due 7/3/2000, maturity
value $72,518,494 (cost $72,479,838) (5).......... $72,479,838 72,479,838
------------
Total Investments - (cost $755,689,745) - 102.6%................. 942,788,501
Other Assets and Liabilities - (2.6%)............................ (24,028,242)
------------
Net Assets - 100.0%.............................................. $918,760,259
------------
</TABLE>

See Combined Notes to Schedules of Investments.

69
<PAGE>

EVERGREEN
Select Small Cap Growth Fund
Schedule of Investments
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - 99.3%
CONSUMER DISCRETIONARY - 3.7%
Household Durables - 1.8%
Universal Electronics, Inc. *........................ 118,500 $ 2,910,656
------------
Media - 1.6%
Valassis Communications, Inc. *...................... 64,500 2,459,063
------------
Textiles & Apparel - 0.3%
Guess?, Inc. *....................................... 34,400 481,600
------------
CONSUMER STAPLES - 1.3%
Food & Drug Retailing - 1.3%
Whole Foods Market, Inc. *#.......................... 49,400 2,040,838
------------
ENERGY - 6.5%
Energy Equipment & Services - 4.7%
Global Industries, Ltd. ............................. 144,200 2,721,775
Patterson Energy, Inc. *............................. 93,000 2,650,500
Pride International, Inc. ........................... 86,500 2,140,875
------------
7,513,150
------------
Oil & Gas - 1.8%
Barrett Resources Corp. *............................ 45,800 1,394,037
Santa Fe Snyder Corp. ............................... 133,200 1,515,150
------------
2,909,187
------------
FINANCIALS - 6.9%
Banks - 1.8%
TCF Financial Corp. ................................. 110,600 2,841,038
------------
Diversified Financials - 2.0%
NextCard, Inc. *#.................................... 163,500 1,389,750
Ubiquitel, Inc. #.................................... 191,800 1,810,112
------------
3,199,862
------------
Insurance - 3.1%
Arthur J. Gallagher & Co. ........................... 46,500 1,953,000
Everest Reinsurance Group, Ltd. ..................... 47,300 1,554,987
Mercury General Corp. ............................... 62,200 1,469,475
------------
4,977,462
------------
HEALTH CARE - 15.6%
Biotechnology - 6.0%
CuraGen Corp. #...................................... 48,400 1,842,225
Epix Med, Inc. ...................................... 104,900 1,560,388
Genome Therapeutics Corp. #.......................... 65,200 1,984,525
Medarex, Inc. ....................................... 27,800 2,349,100
Myriad Genetics, Inc. *.............................. 12,600 1,865,784
------------
9,602,022
------------
</TABLE>

70
<PAGE>

EVERGREEN
Select Small Cap Growth Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
HEALTH CARE - continued
Health Care Equipment & Supplies - 4.3%
Lynx Therapeutics, Inc. *............................ 52,000 $ 2,473,250
Mentor Corp. Minnesota............................... 74,900 2,036,344
Molecular Devices Corp. ............................. 32,600 2,255,512
------------
6,765,106
------------
Health Care Providers & Services - 3.3%
LifePoint Hospitals, Inc. *p......................... 117,700 2,618,825
Pharmacopeia, Inc. .................................. 57,700 2,675,838
------------
5,294,663
------------
Pharmaceuticals - 2.0%
Cubist Pharmaceuticals, Inc. ........................ 65,500 3,225,875
------------
INDUSTRIALS - 10.8%
Aerospace & Defense - 2.5%
M Systems Flash Disk Pioneers, Ltd. *................ 29,800 2,320,675
Precision Castparts Corp. ........................... 36,500 1,651,625
------------
3,972,300
------------
Commercial Services & Supplies - 6.2%
Apollo Group, Inc. *................................. 125,500 3,514,000
Devry, Inc. *........................................ 158,300 4,185,056
Startek, Inc. *...................................... 43,000 2,166,125
------------
9,865,181
------------
Electrical Equipment - 1.0%
Belden, Inc. ........................................ 59,500 1,524,688
------------
Marine - 1.1%
Tidewater, Inc. ..................................... 50,200 1,807,200
------------
INFORMATION TECHNOLOGY - 46.4%
Communications Equipment - 12.2%
Ancor Communications, Inc. p......................... 91,400 3,268,978
Audio Codes, Ltd. p................................. 31,400 3,768,000
Davox Corp. *........................................ 95,500 1,235,531
Extended Systems, Inc. p............................. 14,100 1,353,600
Glenayre Technologies, Inc. ......................... 138,700 1,465,019
Plantronics, Inc. ................................... 21,200 2,448,600
SonicWall, Inc. p.................................... 29,300 2,580,232
Tollgrade Communications, Inc. *..................... 25,100 3,325,750
------------
19,445,710
------------
Computers & Peripherals - 5.7%
Inamed Corp. ........................................ 67,300 2,464,863
Infocus Corp. p...................................... 70,700 2,275,656
</TABLE>

71
<PAGE>

EVERGREEN
Select Small Cap Growth Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
INFORMATION TECHNOLOGY - continued
Computers & Peripherals - continued
Maxtor Corp. *p...................................... 161,600 $ 1,706,900
Rainbow Technologies, Inc. .......................... 54,900 2,669,512
------------
9,116,931
------------
Electronic Equipment & Instruments - 7.9%
Caliper Technologies Corp. p......................... 41,100 1,890,600
Coherent, Inc. *..................................... 30,800 2,583,350
II-VI, Inc. *........................................ 43,200 2,089,800
Kopin Corp. *........................................ 25,300 1,752,025
Sandisk Corp. ....................................... 33,100 2,025,306
Three-Five Systems, Inc. *........................... 37,750 2,227,250
------------
12,568,331
------------
Internet Software & Services - 3.8%
Art Technology Group, Inc. *......................... 12,300 1,241,531
Keynote Systems, Inc. ............................... 31,200 2,201,550
Netegrity, Inc. *.................................... 34,400 2,590,750
------------
6,033,831
------------
Semiconductor Equipment & Products - 10.1%
Helix Technology Corp. .............................. 47,800 1,864,200
Intersil Holding Corp. *p............................ 43,300 2,340,906
Lattice Semiconductor Corp. *p....................... 40,100 2,771,912
LTX Corp. *.......................................... 50,600 1,767,838
Photon Dynamics, Inc. *.............................. 28,100 2,098,719
PRI Automation, Inc. ................................ 25,400 1,660,922
Semitool, Inc. *..................................... 102,200 1,769,338
Silicon Image, Inc. *p............................... 37,400 1,865,325
------------
16,139,160
------------
Software - 6.7%
Bottomline Technologies, Inc. *...................... 51,500 1,760,656
Geoworks............................................. 39,700 625,275
Metasolv Software, Inc. *p........................... 32,100 1,412,400
Pegrine Systems, Inc. *.............................. 79,575 2,760,258
Remedy Corp. *....................................... 36,800 2,051,600
Smartforce Plc....................................... 44,600 2,140,800
------------
10,750,989
------------
MATERIALS - 2.0%
Chemicals - 2.0%
OM Group, Inc. ...................................... 72,800 3,203,200
------------
</TABLE>

72
<PAGE>

EVERGREEN
Select Small Cap Growth Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
TELECOMMUNICATION SERVICES - 6.1%
Diversified Telecommunication Services - 4.0%
Microcell Telecommunications *...................... 44,900 $ 1,622,012
Primus Telecomm Group, Inc. *#...................... 72,100 1,793,487
West Teleservices Corp. *........................... 118,300 2,994,469
------------
6,409,968
------------
Wireless Telecommunications Services - 2.1%
Boston Communications Group *....................... 77,200 1,080,800
Rural Celluar Corp., Class A *...................... 29,500 2,258,594
------------
3,339,394
------------
Total Common Stocks (cost $133,657,271)........... 158,397,405
------------
SHORT-TERM INVESTMENTS - 17.9%
MUTUAL FUND SHARES - 17.9%
Evergreen Select Money Market Fund (cost $2,316,079)
@.................................................. 2,316,079 2,316,079
Navigator Prime Portfolio (cost $26,266,441) ##..... 26,266,441 26,266,441
------------
Total Cash Equivalents (cost $28,582,520)......... 28,582,520
------------
Total Investments - (cost $162,239,791) - 117.2%................. 186,979,925
Other Assets and Liabilities - (17.2%)........................... (27,535,667)
------------
Net Assets - 100.0%.............................................. $159,444,258
------------
</TABLE>

See Combined Notes to Schedules of Investments.

73
<PAGE>

EVERGREEN
Select Small Company Value Fund
Schedule of Investments
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - 98.2%
CONSUMER DISCRETIONARY - 10.4%
Auto Components - 1.0%
Arvin Industries, Inc.................................. 40,000 $ 695,000
-----------
Household Durables - 3.1%
Fossil, Inc. *......................................... 50,000 971,875
Furniture Brands International, Inc. *................. 27,100 409,888
Industrie Natuzzi SpA, ADR *........................... 61,000 724,375
-----------
2,106,138
-----------
Multi-line Retail - 0.5%
Reebok International, Ltd. *........................... 23,500 374,531
-----------
Specialty Retail - 3.7%
Linens 'n Things, Inc. *............................... 21,500 583,187
Pier 1 Imports, Inc.................................... 121,000 1,179,750
Ross Stores, Inc....................................... 43,600 743,925
-----------
2,506,862
-----------
Textiles & Apparel - 2.1%
Guess?, Inc. *......................................... 54,700 765,800
Russell Corp........................................... 17,600 352,000
Wolverine World Wide, Inc. ............................ 31,000 306,125
-----------
1,423,925
-----------
CONSUMER STAPLES - 4.1%
Food & Drug Retailing - 1.1%
Whole Foods Market, Inc. *............................. 17,300 714,706
-----------
Food Products - 3.0%
International Multifoods Corp. ........................ 1,000 17,313
Michael Foods, Inc..................................... 60,600 1,484,700
Smithfield Foods, Inc.................................. 19,200 538,800
-----------
2,040,813
-----------
ENERGY - 9.4%
Energy Equipment & Services - 4.1%
Cal Dive International, Inc. *......................... 7,200 390,150
Hanover Compressor Co. *............................... 25,400 965,200
Pride International, Inc. *............................ 42,800 1,059,300
UTI Energy Corp........................................ 8,800 353,100
-----------
2,767,750
-----------
Oil & Gas - 5.3%
Berry Petroleum Co., Class A........................... 45,000 765,000
Cabot Oil & Gas Corp., Class A......................... 25,500 540,281
Newfield Exploration Co. *............................. 16,700 653,388
Pennzoil-Quaker State Co. ............................. 40,000 482,500
Pogo Producing Co. .................................... 9,800 216,825
</TABLE>

74
<PAGE>

EVERGREEN
Select Small Company Value Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
ENERGY - continued
Oil & Gas - continued
Santa Fe Snyder Corp. ................................. 40,400 $ 459,550
Stone Energy Corp. *................................... 8,500 507,875
-----------
3,625,419
-----------
FINANCIALS - 20.0%
Banks - 15.7%
Astoria Financial Corp. ............................... 17,700 455,775
Banknorth Group, Inc. ................................. 58,000 888,125
Britton & Koontz Capital Corp. ........................ 25,000 275,000
Civic Bancorp.......................................... 110,250 1,584,844
Columbia Banking Systems, Inc. ........................ 69,960 857,010
Cullen/Frost Bankers, Inc. ............................ 26,500 697,281
First Oak Brook Bancshares, Inc., Class A.............. 40,000 545,000
First State Bancorp.................................... 30,000 307,500
Granite State Bankshares, Inc. ........................ 40,000 605,000
Highland Bancorp, Inc. ................................ 36,000 877,500
Independent Bankshares, Inc. .......................... 60,000 1,136,250
MetroWest Bank......................................... 45,000 247,500
Mid-State Bancshares................................... 46,100 1,256,225
Washington Trust Bancorp, Inc. ........................ 47,587 701,908
Wilmington Trust Corp. ................................ 6,700 286,425
-----------
10,721,343
-----------
Diversified Financials - 2.1%
Raymond James Financial, Inc. ......................... 18,000 405,000
Ulticom, Inc. ......................................... 6,600 158,503
Waddell & Reed Financial, Inc., Class A................ 26,550 871,172
-----------
1,434,675
-----------
Real Estate - 2.2%
AMB Property Corp. REIT................................ 21,500 490,469
Liberty Property Trust REIT............................ 12,500 324,219
Prentiss Properties Trust REIT......................... 13,200 316,800
SL Green Realty Corp. REIT............................. 13,000 347,750
-----------
1,479,238
-----------
HEALTH CARE - 17.8%
Biotechnology - 0.1%
Charles River Laboratories International, Inc.......... 2,500 55,469
-----------
Health Care Equipment & Supplies - 7.1%
Alza Corp. *........................................... 21,200 1,253,450
Beckman Coulter, Inc. ................................. 9,100 531,212
CONMED Corp. .......................................... 21,200 548,550
DENTSPLY International, Inc. .......................... 8,000 246,500
</TABLE>

75
<PAGE>

EVERGREEN
Select Small Company Value Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
HEALTH CARE - continued
Health Care Equipment & Supplies - continued
Exactech, Inc. *....................................... 75,200 $ 1,198,500
KV Pharmaceutical Co. ................................. 6,300 171,281
KV Pharmaceutical Co., Class A......................... 3,400 90,100
Sybron International Corp. *........................... 40,000 792,500
-----------
4,832,093
-----------
Health Care Providers & Services - 2.4%
AmeriSource Health Corp., Class A *.................... 53,234 1,650,254
-----------
Pharmaceuticals - 8.2%
Alpharma, Inc., Class A................................ 25,080 1,561,230
Barr Laboratories, Inc. ............................... 18,750 840,234
Medicis Pharmaceutical Corp., Class A *................ 23,100 1,316,700
Shire Pharmaceuticals Group Plc, ADR *................. 11,700 606,938
Warner Chilcott Laboratories Plc, ADR.................. 27,000 600,750
Watson Pharmaceuticals, Inc. *......................... 12,500 671,875
-----------
5,597,727
-----------
INDUSTRIALS - 7.7%
Building Products - 1.9%
American Woodmark Corp. ............................... 30,000 615,000
LSI Industries, Inc. .................................. 42,900 651,544
-----------
1,266,544
-----------
Commercial Services & Supplies - 2.9%
Affiliated Computer Services, Inc., Class A *.......... 20,800 687,700
CSG Systems International, Inc. *...................... 17,400 975,487
Interim Services, Inc. *............................... 17,000 301,750
-----------
1,964,937
-----------
Electrical Equipment - 0.4%
Baldor Electric Co. ................................... 15,000 279,375
-----------
Machinery - 2.5%
Applied Power, Inc., Class A........................... 15,600 522,600
Idex Corp. ............................................ 11,400 359,813
Manitowoc Co., Inc. ................................... 12,000 321,000
Roper Industries, Inc. ................................ 20,000 512,500
-----------
1,715,913
-----------
INFORMATION TECHNOLOGY - 17.3%
Communications Equipment - 0.9%
Apex, Inc. ............................................ 6,300 275,625
Scientific Atlanta, Inc. .............................. 4,200 312,900
-----------
588,525
-----------
</TABLE>

76
<PAGE>

EVERGREEN
Select Small Company Value Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
INFORMATION TECHNOLOGY - continued
Computers & Peripherals - 3.0%
Cybex Computer Products Corp. ......................... 17,600 $ 756,800
Radisys Corp. *........................................ 6,500 368,875
Zebra Technologies Corp., Class A *.................... 19,800 877,388
-----------
2,003,063
-----------
Electronic Equipment & Instruments - 3.0%
Burr-Brown Corp. ...................................... 13,400 1,161,613
Sanmina Corp. *........................................ 10,220 873,810
-----------
2,035,423
-----------
Semiconductor Equipment & Products - 4.3%
Advanced Energy Industries, Inc. ...................... 8,700 512,756
Helix Technology Corp. ................................ 31,400 1,224,600
Kulicke & Soffa Industries, Inc. ...................... 4,700 279,063
Lattice Semiconductor Corp. *.......................... 13,500 933,187
-----------
2,949,606
-----------
Software - 6.1%
Answerthink Consulting Group........................... 27,500 457,187
FileNet Corp. ......................................... 17,600 323,400
Hyperion Solutions Corp. .............................. 22,600 733,087
National Instruments Corp. ............................ 9,900 431,888
Network Associates, Inc. *............................. 33,000 672,375
Progress Software Corp. ............................... 33,300 597,319
Remedy Corp. *......................................... 17,000 947,750
-----------
4,163,006
-----------
MATERIALS - 4.8%
Chemicals - 3.1%
Cambrex Corp. ......................................... 13,500 607,500
Crompton Corp. ........................................ 42,500 520,625
Donaldson, Inc. ....................................... 28,600 564,850
Olin Corp. ............................................ 24,500 404,250
-----------
2,097,225
-----------
Containers & Packaging - 1.1%
AptarGroup, Inc. ...................................... 27,000 729,000
-----------
Electronic Equipment & Instruments - 0.6%
Manufacturers Services, Ltd. .......................... 21,700 446,206
-----------
TELECOMMUNICATION SERVICES - 1.0%
Diversified Telecommunication Services - 1.0%
Hickory Tech Corp. .................................... 54,300 661,781
-----------
</TABLE>

77
<PAGE>

EVERGREEN
Select Small Company Value Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
UTILITIES - 5.7%
Electric Utilities - 1.4%
Cleco Corp. .......................................... 10,000 $ 335,000
UtiliCorp United, Inc................................. 32,500 645,938
-----------
980,938
-----------
Gas Utilities - 4.3%
Eastern Enterprises................................... 25,000 1,575,000
MDU Resources Group, Inc. ............................ 61,100 1,321,287
-----------
2,896,287
-----------
Total Common Stocks (cost $62,722,957).............. 66,803,772
-----------
SHORT-TERM INVESTMENTS - 4.3%
MUTUAL FUND SHARES - 4.3%
Evergreen Select Money Market Fund
(cost $2,891,517) @.................................. 2,891,517 2,891,517
-----------
Total Investments - (cost $65,614,474) - 102.5%................... 69,695,289
Other Assets and Liabilities - (2.5%)............................. (1,673,858)
-----------
Net Assets - 100.0%............................................... $68,021,431
-----------
</TABLE>

See Combined Notes to Schedules of Investments.

78
<PAGE>

EVERGREEN
Select Social Principles Fund
Schedule of Investments
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - 95.3%
CONSUMER DISCRETIONARY - 12.9%
Auto Components - 1.1%
Magna International, Inc., Class A................... 19,470 $ 919,957
------------
Automobiles - 0.8%
Harley-Davidson, Inc. ............................... 19,060 733,810
------------
Hotels, Restaurants & Leisure - 2.1%
Magna Entertainment Corp............................. 4,606 30,011
Starbucks Corp. *#................................... 26,550 1,013,878
Tricon Global Restaurants, Inc. *.................... 25,140 710,205
------------
1,754,094
------------
Media - 3.2%
Omnicom Group, Inc................................... 10,190 907,547
Pegasus Communications Corp.......................... 9,850 483,266
Young & Rubicam, Inc. ............................... 23,410 1,338,759
------------
2,729,572
------------
Multi-line Retail - 3.2%
Family Dollar Stores, Inc. .......................... 85,150 1,665,747
Saks, Inc. *#........................................ 101,470 1,065,435
------------
2,731,182
------------
Specialty Retail - 2.5%
Abercrombie & Fitch Co., Class A *#.................. 13,950 170,016
Best Buy Co., Inc. *................................. 16,026 1,013,644
Circuit City Stores, Inc. ........................... 3,320 110,183
Staples, Inc. *...................................... 53,420 821,332
------------
2,115,175
------------
CONSUMER STAPLES - 6.6%
Food Products - 6.6%
Dean Foods Co........................................ 23,320 738,953
Keebler Foods Co. *#................................. 61,400 2,279,475
McCormick & Co., Inc................................. 27,030 878,475
Nabisco Holdings Corp., Class A #.................... 32,840 1,724,100
------------
5,621,003
------------
ENERGY - 1.7%
Oil & Gas - 1.7%
Ultramar Diamond Shamrock Corp. ..................... 57,860 1,435,651
------------
FINANCIALS - 14.1%
Banks - 5.8%
FleetBoston Financial Corp. ......................... 29,806 1,013,404
Mellon Financial Corp................................ 24,790 903,286
SouthTrust Corp...................................... 96,790 2,189,874
</TABLE>

79
<PAGE>

EVERGREEN
Select Social Principles Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
FINANCIALS - continued
Banks - continued
Summit Bancorp....................................... 10,970 $ 270,136
Union Planters Corp. ................................ 18,140 506,786
------------
4,883,486
------------
Diversified Financials - 3.1%
Countrywide Credit Industries, Inc. ................. 24,180 732,956
E Trade Group, Inc. #................................ 62,000 1,023,000
Knight Trading Group, Inc. #......................... 28,410 846,973
------------
2,602,929
------------
Insurance - 4.3%
AFLAC, Inc........................................... 6,560 301,350
Annuity & Life Re, Ltd. ............................. 32,210 789,145
Partner Re, Ltd. .................................... 26,520 939,803
ReliaStar Financial Corp. ........................... 31,440 1,648,635
------------
3,678,933
------------
Real Estate - 0.9%
FelCor Lodging Trust, Inc., REIT #................... 43,870 811,595
------------
HEALTH CARE - 9.1%
Biotechnology - 2.5%
Biogen, Inc. *....................................... 6,890 444,405
Chiron Corp. #....................................... 8,820 418,950
MedImmune, Inc. *#................................... 17,340 1,283,160
------------
2,146,515
------------
Health Care Equipment & Supplies - 0.5%
PE Corp-PE Biosystems Group.......................... 5,720 376,805
------------
Health Care Providers & Services - 3.4%
HEALTHSOUTH Corp. *.................................. 205,700 1,478,469
Pediatrix Medical Group, Inc. *#..................... 45,160 524,985
Wellpoint Health Networks, Inc., Class A *........... 11,650 843,897
------------
2,847,351
------------
Pharmaceuticals - 2.7%
Elan Corp. Plc., ADR *#.............................. 25,310 1,225,953
Mylan Laboratories, Inc. #........................... 59,192 1,080,254
------------
2,306,207
------------
INDUSTRIALS - 7.6%
Aerospace & Defense - 0.5%
BE Aerospace, Inc. *................................. 55,870 384,106
------------
Commercial Services & Supplies - 4.8%
Apollo Group, Inc. *#................................ 39,210 1,097,880
Ha Lo Industries, Inc. *............................. 95,600 537,750
</TABLE>

80
<PAGE>

EVERGREEN
Select Social Principles Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
INDUSTRIALS - continued
Commercial Services & Supplies - continued
NCI Building Systems, Inc. *......................... 31,910 $ 646,178
Newpark Resources, Inc. *............................ 188,520 1,779,157
------------
4,060,965
------------
Construction & Engineering - 2.3%
Metromedia Fiber Network, Inc., Class A *#........... 49,400 1,960,563
------------
INFORMATION TECHNOLOGY - 28.2%
Communications Equipment - 1.1%
Harmonic Lightwaves, Inc. *#......................... 25,190 623,452
Redback Networks, Inc. #............................. 1,920 341,760
------------
965,212
------------
Electronic Equipment & Instruments - 2.7%
Flextronics International, Ltd. #.................... 11,860 814,634
Sanmina Corp. *#..................................... 11,900 1,017,450
SCI Systems, Inc. *.................................. 11,240 440,467
------------
2,272,551
------------
Internet Software & Services - 5.7%
Ariba, Inc........................................... 15,600 1,529,531
Cnet Networks, Inc. #................................ 24,380 598,834
Commerce One, Inc. #................................. 8,480 384,913
Inktomi Corp. #...................................... 14,930 1,765,472
Real Networks, Inc. *#............................... 11,450 578,941
------------
4,857,691
------------
Semiconductor Equipment & Products - 10.5%
Altera Corp. *....................................... 9,940 1,013,259
KLA-Tencor Corp. *................................... 22,890 1,340,496
Linear Technology Corp............................... 18,280 1,168,777
Novellus Systems, Inc. *............................. 32,540 1,840,544
PMC-Sierra, Inc. *................................... 17,840 3,169,945
Teradyne, Inc. *..................................... 5,120 376,320
------------
8,909,341
------------
Software - 8.2%
Informix Corp. #..................................... 73,170 544,202
Phone.com, Inc....................................... 4,930 321,066
Siebel Systems, Inc. *............................... 34,130 5,582,388
Veritas Software Corp. *#............................ 4,222 477,152
------------
6,924,808
------------
MATERIALS - 1.4%
Construction Materials - 0.8%
Southdown, Inc....................................... 11,480 662,970
------------
</TABLE>

81
<PAGE>

EVERGREEN
Select Social Principles Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
MATERIALS - continued
Containers & Packaging - 0.6%
Rock Tennessee Co., Class A......................... 64,420 $ 551,596
------------
TELECOMMUNICATION SERVICES - 6.9%
Diversified Telecommunication Services - 4.5%
NorthPoint Communications Group, Inc. .............. 13,470 150,695
Qwest Communications International, Inc. *#......... 72,890 3,621,722
------------
3,772,417
------------
Wireless Telecommunications Services - 2.4%
Crown Castle International Corp. ................... 19,620 716,130
Voicestream Wireless Corp. *#....................... 11,640 1,353,696
------------
2,069,826
------------
UTILITIES - 6.8%
Electric Utilities - 4.5%
Cinergy Corp........................................ 57,860 1,471,814
Sierra Pacific Resources #.......................... 59,528 747,821
UtiliCorp United, Inc. ............................. 77,550 1,541,306
------------
3,760,941
------------
Gas Utilities - 2.3%
El Paso Energy Corp................................. 38,860 1,979,431
------------
Total Common Stocks (cost $68,949,659)............ 80,826,683
------------

<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 4.1%
U.S. Treasury Notes, 5.00 - 14.00%, 4/30/2001 -
2/15/2026 (cost $3,437,940) ##.................... $3,437,940 3,437,940
------------
SHORT-TERM INVESTMENTS - 28.2%
REPURCHASE AGREEMENTS - 3.2%
Dresdner Bank AG
6.40%, dated 6/30/2000, due 7/3/2000, maturity
value $2,678,813
(cost $2,677,385) (6).............................. 2,677,385 2,677,385
------------

<CAPTION>
Shares Value
<S> <C> <C>

MUTUAL FUND SHARES - 25.0%
Navigator Prime Portfolio (cost $21,239,624) ##..... 21,239,624 21,239,624
------------
Total Cash Equivalents (cost $23,917,009) ........ 23,917,009
------------
Total Investments - (cost $96,304,608) - 127.6%.................. 108,181,632
Other Assets and Liabilities - (27.6%)........................... (23,380,880)
------------
Net Assets - 100.0%.............................................. $ 84,800,752
------------
</TABLE>

See Combined Notes to Schedules of Investments.

82
<PAGE>

EVERGREEN
Select Strategic Growth Fund
Schedule of Investments
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - 93.7%
CONSUMER DISCRETIONARY - 8.5%
Media - 0.5%
Omnicom Group, Inc. ................................ 49,875 $ 4,441,992
------------
Multi-line Retail - 3.7%
Family Dollar Stores, Inc. ......................... 477,800 9,346,962
Wal-Mart Stores, Inc. .............................. 375,950 21,664,119
------------
31,011,081
------------
Specialty Retail - 4.3%
Best Buy Co., Inc. *................................ 181,600 11,486,200
Home Depot, Inc. ................................... 329,310 16,444,918
RadioShack Corp. #.................................. 168,850 7,999,269
------------
35,930,387
------------
CONSUMER STAPLES - 7.7%
Beverages - 2.9%
Anheuser Busch Cos., Inc. #......................... 153,250 11,445,859
Pepsico, Inc. #..................................... 285,375 12,681,352
------------
24,127,211
------------
Food Products - 1.2%
Quaker Oats Co. .................................... 134,175 10,079,897
------------
Personal Products - 2.3%
Colgate-Palmolive Co. .............................. 152,605 9,137,224
Kimberly-Clark Corp. ............................... 170,710 9,794,486
------------
18,931,710
------------
Tobacco - 1.3%
Philip Morris Cos., Inc. ........................... 424,725 11,281,758
------------
ENERGY - 1.3%
Oil & Gas - 1.3%
Tosco Corp. ........................................ 389,025 11,014,270
------------
FINANCIALS - 2.8%
Diversified Financials - 1.9%
American Express Co. ............................... 34,200 1,782,675
Citigroup, Inc. .................................... 231,575 13,952,394
------------
15,735,069
------------
Insurance - 0.9%
American International Group, Inc................... 66,600 7,825,500
------------
HEALTH CARE - 11.9%
Health Care Providers & Services - 1.2%
HCA-The Healthcare Corp............................. 340,325 10,337,372
------------
</TABLE>

83
<PAGE>

EVERGREEN
Select Strategic Growth Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
HEALTH CARE - continued
Pharmaceuticals - 10.7%
Johnson & Johnson p................................. 223,850 $ 22,804,719
Pfizer, Inc. ....................................... 1,014,643 48,702,864
Schering-Plough Corp. .............................. 360,900 18,225,450
------------
89,733,033
------------
INDUSTRIALS - 7.8%
Commercial Services & Supplies - 1.1%
McGraw-Hill Cos., Inc. ............................. 181,450 9,798,300
------------
Industrial Conglomerates - 6.7%
General Electric Co. ............................... 1,061,550 56,262,150
------------
INFORMATION TECHNOLOGY - 52.8%
Communications Equipment - 17.5%
Advanced Fibre Communications, Inc.................. 247,435 11,211,898
Brocade Communications Systems, Inc. p.............. 57,725 10,591,636
CIENA Corp. *p...................................... 28,775 4,796,433
Cisco Systems, Inc. *............................... 701,700 44,601,806
Commscope, Inc. .................................... 275,000 11,275,000
Emulex Corp. p...................................... 136,425 8,961,417
Extreme Networks, Inc. ............................. 161,325 17,019,788
Juniper Networks, Inc. p............................ 48,300 7,030,669
Nortel Networks Corp. p............................. 202,900 13,847,925
Powerwave Technologies, Inc. *p..................... 279,850 12,313,400
RF Micro Devices, Inc. *............................ 64,800 5,678,100
------------
147,328,072
------------
Computers & Peripherals - 8.2%
EMC Corp. *......................................... 365,850 28,147,584
Hewlett-Packard Co. ................................ 67,900 8,479,013
Network Appliance, Inc.............................. 109,500 8,814,750
Sun Microsystems, Inc. *............................ 255,050 23,193,609
------------
68,634,956
------------
Electronic Equipment & Instruments - 2.0%
JDS Uniphase Corp. *................................ 139,800 16,758,525
------------
Internet Software & Services - 2.4%
Broadvision, Inc. *................................. 185,190 9,409,967
Yahoo!, Inc. *...................................... 85,550 10,597,506
------------
20,007,473
------------
Semiconductor Equipment & Products - 12.1%
Analog Devices, Inc. *.............................. 53,450 4,062,200
Applied Micro Circuits Corp. *...................... 105,350 10,403,312
Conexant Systems, Inc. *p........................... 288,825 14,044,116
</TABLE>

84
<PAGE>

EVERGREEN
Select Strategic Growth Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
INFORMATION TECHNOLOGY - continued
Semiconductor Equipment & Products - continued
Integrated Device Technology..................... 207,875 $ 12,446,516
LSI Logic Corp. *................................ 317,000 17,157,625
Micrel, Inc. .................................... 189,372 8,225,846
National Semiconductor Corp. *................... 175,275 9,946,856
PMC-Sierra, Inc. *............................... 43,175 7,671,658
SDL, Inc. *#..................................... 23,575 6,723,295
Texas Instruments, Inc. ......................... 168,350 11,563,541
------------
102,244,965
------------
Software - 10.6%
Business Objects SA, ADR *....................... 90,360 7,962,975
Macromedia, Inc. ................................ 4,310 416,723
Mercury Interactive Corp. *...................... 245,168 23,720,004
Microsoft Corp. *................................ 252,025 20,162,000
Remedy Corp. *................................... 419,285 23,375,139
Siebel Systems, Inc. *........................... 81,680 13,359,785
------------
88,996,626
------------
UTILITIES - 0.9%
Electric Utilities - 0.9%
Duke Energy Corp. ............................... 129,075 7,276,603
------------
Total Common Stocks (cost $569,768,602)........ 787,756,950
------------

<CAPTION>
Principal
Amount Value
<S> <C> <C>
U.S. TREASURY OBLIGATIONS - 0.1%
U.S. Treasury Notes, 7.875%, 7/31/2001 -
8/15/2001
(cost $1,116,000) ##............................ $ 1,116,000 1,116,000
------------
SHORT-TERM INVESTMENTS - 16.8%
REPURCHASE AGREEMENTS - 10.2%
Dresdner Bank AG
6.40%, dated 6/30/2000, due 7/3/2000, maturity
value $85,838,514 (cost $85,792,758) (7)........ 85,792,758 85,792,758
------------

<CAPTION>
Shares Value
<S> <C> <C>
MUTUAL FUND SHARES - 6.6%
Valiant General Fund (cost $198,442)............. 198,442 198,442
Navigator Prime Portfolio (cost $56,000,819) ##.. 56,000,819 56,000,819
------------
Total Cash Equivalents (cost $141,992,019)..... 141,992,019
------------
Total Investments - (cost $712,876,621) - 110.6%............... 930,864,969
Other Assets and Liabilities - (10.6%)......................... (89,527,542)
------------
Net Assets - 100.0%............................................ $841,337,427
------------
</TABLE>

See Combined Notes to Schedules of Investments.

85
<PAGE>

EVERGREEN
Select Strategic Value Fund
Schedule of Investments
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - 94.7%
CONSUMER DISCRETIONARY - 12.4%
Auto Components - 0.6%
Lear Corp. *........................................ 244,065 $ 4,881,300
------------
Hotels, Restaurants & Leisure - 2.2%
McDonald's Corp..................................... 502,625 16,555,211
------------
Household Durables - 2.7%
Black & Decker Corp................................. 524,150 20,605,647
------------
Media - 4.8%
Cablevision Systems Corp............................ 201,100 13,649,662
Disney (Walt) Co.................................... 579,195 22,480,006
------------
36,129,668
------------
Specialty Retail - 2.1%
Lowe's Companies, Inc............................... 386,125 15,855,258
------------
CONSUMER STAPLES - 1.6%
Tobacco - 1.6%
Philip Morris Cos., Inc............................. 441,500 11,727,344
------------
ENERGY - 16.7%
Oil & Gas - 16.7%
Burlington Resources, Inc........................... 543,726 20,797,519
Conoco, Inc., Class B............................... 628,300 15,432,619
Exxon Mobil Corp.................................... 440,734 34,597,619
Texaco, Inc......................................... 330,350 17,591,138
Tosco Corp.......................................... 738,350 20,904,534
Ultramar Diamond Shamrock Corp...................... 300,625 7,459,258
USX Marathon Group.................................. 383,350 9,607,709
------------
126,390,396
------------
FINANCIALS - 24.1%
Banks - 13.4%
Bank of America Corp................................ 443,065 19,051,795
Chase Manhattan Corp................................ 554,632 25,547,736
Mellon Financial Corp............................... 722,000 26,307,875
SouthTrust Corp..................................... 295,586 6,687,633
Wells Fargo Co...................................... 616,625 23,894,219
------------
101,489,258
------------
Diversified Financials - 9.2%
Citigroup, Inc...................................... 443,991 26,750,458
Countrywide Credit Industries, Inc.................. 375,625 11,386,133
Merrill Lynch & Co., Inc............................ 276,900 31,843,500
------------
69,980,091
------------
Insurance - 1.5%
American International Group, Inc................... 94,000 11,045,000
------------
</TABLE>

86
<PAGE>

EVERGREEN
Select Strategic Value Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

COMMON STOCKS - continued
HEALTH CARE - 3.7%
Health Care Providers & Services - 2.2%
Tenet Healthcare Corp. *............................. 619,925 $ 16,737,975
------------
Pharmaceuticals - 1.5%
Bristol-Myers Squibb Co.............................. 191,170 11,135,653
------------
INFORMATION TECHNOLOGY - 10.7%
Communications Equipment - 1.9%
Motorola, Inc........................................ 498,345 14,483,152
------------
Computers & Peripherals - 2.5%
International Business Machines Corp................. 172,525 18,902,270
------------
Electronic Equipment & Instruments - 2.8%
Koninklijke (Royal) Philips Electronics, NV, ADR..... 444,448 21,111,280
------------
Semiconductor Equipment & Products - 3.5%
Intel Corp........................................... 115,965 15,503,071
Teradyne, Inc. *..................................... 153,513 11,283,205
------------
26,786,276
------------
MATERIALS - 6.1%
Chemicals - 1.2%
Hercules, Inc........................................ 640,745 9,010,477
------------
Metals & Mining - 3.1%
Alcoa, Inc........................................... 801,100 23,231,900
------------
Paper & Forest Products - 1.8%
Mead Corp............................................ 560,060 14,141,515
------------
TELECOMMUNICATION SERVICES - 13.7%
Diversified Telecommunication Services - 13.7%
Adelphia Communications Corp., Class A............... 255,800 11,990,625
ALLTEL Corp.......................................... 246,750 15,283,078
AT&T Corp............................................ 565,000 17,868,125
Centurytel, Inc...................................... 610,837 17,561,564
GTE Corp............................................. 375,510 23,375,497
SBC Communications, Inc.............................. 415,000 17,948,750
------------
104,027,639
------------
UTILITIES - 5.7%
Gas Utilities - 5.7%
El Paso Energy Corp.................................. 211,900 10,793,656
NICOR, Inc........................................... 251,500 8,205,188
The Williams Companies, Inc.......................... 569,090 23,723,939
------------
42,722,783
------------
Total Common Stocks (cost $697,747,179)............ 716,950,093
------------
</TABLE>

87
<PAGE>

EVERGREEN
Select Strategic Value Fund
Schedule of Investments (continued)
June 30, 2000

<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>

PREFERRED STOCKS - 2.1%
CONSUMER DISCRETIONARY - 2.1%
Media - 2.1%
News Corp., Ltd. (cost $8,866,280)................. 334,600 $ 15,893,500
------------

<CAPTION>
Principal
Amount Value
<S> <C> <C>
SHORT-TERM INVESTMENTS - 3.6%
REPURCHASE AGREEMENTS - 3.2%
Dresdner Bank AG
6.40%, dated 6/30/2000, due 7/3/2000, maturity
value $24,175,643 (cost $24,162,756) (8).......... $24,162,756 24,162,756
------------

<CAPTION>
Shares Value
<S> <C> <C>
MUTUAL FUND SHARES - 0.4%
Valiant General Fund (cost $3,418,057)............. 3,418,057 3,418,057
------------
Total Cash Equivalents (cost $27,580,813)........ 27,580,813
------------
Total Investments - (cost $734,194,272) - 100.4%................. 760,424,406
Other Assets and Liabilities - (0.4%)............................ (3,230,178)
------------
Net Assets - 100.0%.............................................. $757,194,228
------------
</TABLE>

See Combined Notes to Schedules of Investments.

88
<PAGE>

Combined Notes to Schedules of Investments
June 30, 2000

* Non-income producing security.
# All or a portion of this security is on loan.
## Represents investment of cash collateral received for securities on loan.
[_]No market quotation available. Valued at fair value as determined in good
faith under procedures established by the Board of Trustees.
/\ Credit ratings are unaudited and rated by Moody's Investors Service where
Standard and Poor's ratings are not available.
@ The advisor of the Fund and the advisor of the Money Market Fund are each a
subsidiary of First Union.
(1) The repurchase agreement is fully collateralized by $23,320,000 U.S.
Treasury Notes, 5.25 - 6.125%, 5/31/2001 - 8/15/2007; value including
accrued interest is $23,442,922.
(2) The repurchase agreement is fully collateralized by $61,585,000 U.S.
Treasury Notes, 5.25 - 5.75% 10/31/2000 - 5/31/2001; value including
accrued interest is $61,807,708.
(3) The repurchase agreement is fully collateralized by $6,300,000 U.S.
Treasury Notes, 5.25%, 5/31/2001; value including accrued interest is
$6,258,189.
(4) The repurchase agreement is fully collateralized by $4,785,000 U.S.
Treasury Notes, 6.125%, 8/15/2007; value including accrued interest is
$4,860,099.
(5) The repurchase agreement is fully collateralized by $72,520,000 U.S.
Treasury Notes, 5.25 - 7.50%, 5/31/2001 - 11/15/2001; value including
accrued interest is $73,929,840.
(6) The repurchase agreement is fully collateralized by $2,690,000 U.S.
Treasury Notes, 6.125%, 8/15/2007; value including accrued interest is
$2,732,219.
(7) The repurchase agreement is fully collateralized by $33,430,000 U.S.
Treasury Notes, 5.75%, 10/31/2000 & $50,000,000 U.S. Treasury Bonds, 8.75%,
11/15/2008; value including accrued interest is $87,508,853.
(8) The repurchase agreement is fully collateralized by $5,587,000 U.S.
Treasury Bonds, 6.00 - 6.25%, 2/15/2026 - 5/15/2030 & $18,795,000 U.S
Treasury Notes, 5.625 - 6.625%, 11/15/2005 - 8/15/2007; value including
accrued interest is $24,648,266.

Summary of Abbreviations:
ADR American Depository Receipt
MTN Medium Term Note
REIT Real Estate Investment Trust
GNMA Government National Mortgage Association
LP Limited Partnership

See Combined Notes to Financial Statements.

89
<PAGE>

EVERGREEN
Select Equity Funds
Statements of Assets and Liabilities
June 30, 2000

<TABLE>
<CAPTION>
Secular
Balanced Core Equity Diversified Large Cap Growth
Fund Fund Value Fund Blend Fund Fund
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Identified cost of
securities............ $520,982,659 $1,611,584,714 $407,155,876 $207,845,535 $683,209,907
Identified cost of
repurchase
agreements............ 22,981,309 60,592,502 6,130,610 4,761,063 72,479,838
Net unrealized gains on
securities............ 64,762,655 866,105,328 69,079,248 74,379,898 187,098,756
-----------------------------------------------------------------------------------------------
Market value of
securities............ 608,726,623 2,538,282,544 482,365,734 286,986,496 942,788,501
Receivable for
securities sold....... 2,969,688 19,230,560 0 0 12,215,475
Receivable for Fund
shares sold........... 537,357 1,083,363 100,077 0 345,883
Dividends and interest
receivable............ 5,192,148 1,696,000 468,307 215,795 78,496
Receivable for daily
variation margin on
open futures
contracts............. 0 179,275 50,500 0 0
Receivable from
investment advisor.... 0 0 85,377 0 0
Prepaid expenses and
other assets.......... 8,136 6,647 15,243 5,433 20,450
-----------------------------------------------------------------------------------------------
Total assets........ 617,433,952 2,560,478,389 483,085,238 287,207,724 955,448,805
-----------------------------------------------------------------------------------------------
Liabilities
Distributions payable.. 532,816 968,261 15,135 80,037 0
Payable for securities
purchased............. 13,576,977 18,637,020 0 0 35,928,665
Payable for Fund shares
redeemed.............. 693,746 1,867,699 133,450 23,635 340,352
Payable for securities
on loan............... 0 0 0 9,695,765 0
Advisory fee payable... 96,526 65,767 0 8,759 104,961
Distribution Plan
expenses payable...... 21 1,063 28 4 24
Due to other related
parties............... 4,890 20,629 3,936 2,243 7,384
Accrued expenses and
other liabilities..... 36,596 322,686 88,325 69,048 307,160
-----------------------------------------------------------------------------------------------
Total liabilities... 14,941,572 21,883,125 240,874 9,879,491 36,688,546
-----------------------------------------------------------------------------------------------
Net assets.............. $602,492,380 $2,538,595,264 $482,844,364 $277,328,233 $918,760,259
-----------------------------------------------------------------------------------------------
Net assets represented
by
Paid-in capital........ $463,090,895 $1,594,559,970 $375,378,718 $173,131,176 $570,622,629
Undistributed
(overdistributed) net
investment income
(loss)................ 201,551 (12,980) (31,097) 2,934 (9,300)
Accumulated net
realized gains or
losses on securities
and foreign currency
related transactions.. 74,437,279 78,372,292 38,564,634 29,814,225 161,048,174
Net unrealized gains on
securities and futures
transactions.......... 64,762,655 865,675,982 68,932,109 74,379,898 187,098,756
-----------------------------------------------------------------------------------------------
Total net assets........ $602,492,380 $2,538,595,264 $482,844,364 $277,328,233 $918,760,259
-----------------------------------------------------------------------------------------------
Net assets consists of
Class I................ $601,452,984 $2,485,896,360 $481,460,198 $277,163,396 $917,548,221
Class IS............... 1,039,396 52,698,904 1,384,166 164,837 1,212,038
-----------------------------------------------------------------------------------------------
Total net assets........ $602,492,380 $2,538,595,264 $482,844,364 $277,328,233 $918,760,259
-----------------------------------------------------------------------------------------------
Shares outstanding
Class I................ 39,827,466 27,814,842 17,044,634 6,344,777 6,265,650
Class IS............... 68,640 633,510 49,600 3,777 8,303
-----------------------------------------------------------------------------------------------
Net asset value per
share
Class I................ $ 15.10 $ 89.37 $ 28.25 $ 43.68 $ 146.44
-----------------------------------------------------------------------------------------------
Class IS............... $ 15.14 $ 83.19 $ 27.91 $ 43.64 $ 145.98
-----------------------------------------------------------------------------------------------
</TABLE>

See Combined Notes to Financial Statements.

90
<PAGE>

EVERGREEN
Select Equity Funds
Statements of Assets and Liabilities
June 30, 2000

<TABLE>
<CAPTION>
Small Cap Small Social
Growth Company Principles Strategic Strategic
Fund Value Fund Fund Growth Fund Value Fund
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Identified cost of
securities............ $162,239,791 $ 65,614,474 $ 93,627,223 $627,083,863 $710,031,516
Identified cost of
repurchase
agreements............ 0 0 2,677,385 85,792,758 24,162,756
Net unrealized gains on
securities............ 24,740,134 4,080,815 11,877,024 217,988,348 26,230,134
----------------------------------------------------------------------------------------------
Market value of
securities............ 186,979,925 69,695,289 108,181,632 930,864,969 760,424,406
Receivable for
securities sold....... 0 361,377 1,261,344 6,886,110 0
Receivable for Fund
shares sold........... 25 0 259,539 1,075,510 235,844
Dividends and interest
receivable............ 18,972 165,155 58,174 219,794 991,916
Deferred organization
expenses.............. 1,910 0 0 0 0
Receivable from
investment advisor.... 0 2,435 0 0 0
Prepaid expenses and
other assets.......... 10,800 7,500 6,091 6,726 10,967
----------------------------------------------------------------------------------------------
Total assets........ 187,011,632 70,231,756 109,766,780 939,053,109 761,663,133
----------------------------------------------------------------------------------------------
Liabilities
Distributions payable.. 0 7,697 19,902 67,144 515,229
Payable for securities
purchased............. 1,152,029 2,164,584 261,226 34,976,927 0
Payable for Fund shares
redeemed.............. 68,930 0 0 5,445,041 3,719,996
Payable for securities
on loan............... 26,266,441 0 24,677,564 57,116,819 0
Advisory fee payable... 8,924 0 4,341 5,866 81,855
Distribution Plan
expenses payable...... 0 28 0 477 139
Due to other related
parties............... 1,301 562 690 6,826 6,362
Accrued expenses and
other liabilities..... 69,749 37,454 2,305 96,582 145,324
----------------------------------------------------------------------------------------------
Total liabilities... 27,567,374 2,210,325 24,966,028 97,715,682 4,468,905
----------------------------------------------------------------------------------------------
Net assets.............. $159,444,258 $ 68,021,431 $ 84,800,752 $841,337,427 $757,194,228
----------------------------------------------------------------------------------------------
Net assets represented
by
Paid-in capital........ $105,665,093 $ 81,573,814 $ 49,640,967 $477,784,831 $721,000,056
Undistributed
(overdistributed) net
investment income..... (557) (9,023) (10,900) 2,890 (50,344)
Accumulated net
realized gains or
losses on securities
and foreign currency
related transactions.. 29,039,588 (17,624,175) 23,293,661 145,561,358 10,014,382
Net unrealized gains on
securities and futures
transactions.......... 24,740,134 4,080,815 11,877,024 217,988,348 26,230,134
----------------------------------------------------------------------------------------------
Total net assets........ $159,444,258 $ 68,021,431 $ 84,800,752 $841,337,427 $757,194,228
----------------------------------------------------------------------------------------------
Net assets consists of
Class I................ $159,444,258 $ 66,684,575 $ 84,495,283 $817,618,249 $750,470,579
Class IS............... 0 1,336,856 305,469 23,719,178 6,723,649
----------------------------------------------------------------------------------------------
Total net assets........ $159,444,258 $ 68,021,431 $ 84,800,752 $841,337,427 $757,194,228
----------------------------------------------------------------------------------------------
Shares outstanding
Class I................ 7,006,087 7,635,672 2,506,241 15,579,096 3,521,141
Class IS............... 0 158,264 9,088 454,336 31,543
----------------------------------------------------------------------------------------------
Net asset value per
share
Class I................ $ 22.76 $ 8.73 $ 33.71 $ 52.48 $ 213.13
----------------------------------------------------------------------------------------------
Class IS............... -- $ 8.45 $ 33.61 $ 52.21 $ 213.16
----------------------------------------------------------------------------------------------
</TABLE>

See Combined Notes to Financial Statements.

91
<PAGE>

EVERGREEN
Select Equity Funds
Statements of Operations
Year Ended June 30, 2000

Balanced Core Equity Diversified Large Cap Secular
Fund Fund Value Fund Blend Fund Growth Fund
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income
Dividends (net of foreign
withholding taxes of
$1,731, $78,005, $22,106,
$2,589 and $12,418,
respectively)............ $ 2,291,931 $ 26,761,942 $ 5,149,174 $ 3,778,526 $ 1,814,655
Interest.................. 21,529,772 3,237,050 491,830 366,105 1,847,974
Securities lending
income................... 0 0 0 49,699 196,594
---------------------------------------------------------------------------------------------------
Total investment income... 23,821,703 29,998,992 5,641,004 4,194,330 3,859,223
---------------------------------------------------------------------------------------------------
Expenses
Advisory fee.............. 3,639,055 16,939,023 2,982,038 2,294,889 5,502,067
Distribution Plan
expenses................. 2,089 104,602 3,371 858 975
Administrative services
fees..................... 382,187 1,575,686 311,944 193,185 554,626
Transfer agent fee........ 410,288 22,484 226,563 2,557 8,996
Custodian fee............. 180,416 642,870 141,253 86,986 208,703
Other..................... 100,759 783,715 248,377 163,312 392,766
---------------------------------------------------------------------------------------------------
Total expenses........... 4,714,794 20,068,380 3,913,546 2,741,787 6,668,133
Less: Expense
reductions.............. (33,180) (102,941) (27,703) (14,115) (45,854)
Fee waivers............ (523,595) (2,031,773) (725,388) (306,377) (736,074)
---------------------------------------------------------------------------------------------------
Net expenses............. 4,158,019 17,933,666 3,160,455 2,421,295 5,886,205
---------------------------------------------------------------------------------------------------
Net investment income
(loss)................... 19,663,684 12,065,326 2,480,549 1,773,035 (2,026,982)
---------------------------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities and
futures transactions
Net realized gains or
losses on:
Securities............... 98,574,932 83,077,354 47,711,399 49,732,268 184,365,616
Futures contracts........ 0 (4,246,425) 629,155 0 0
---------------------------------------------------------------------------------------------------
Net realized gains or
losses on securities and
futures transactions 98,574,932 78,830,929 48,340,554 49,732,268 184,365,616
---------------------------------------------------------------------------------------------------
Net change in unrealized
gains or losses on
securities
and futures transactions.. (8,771,394) 88,965,879 (18,469,695) (39,104,870) 118,462,891
---------------------------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities
and futures transactions.. 89,803,538 167,796,808 29,870,859 10,627,398 302,828,507
---------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting from
operations............... $109,467,222 $179,862,134 $ 32,351,408 $ 12,400,433 $300,801,525
</TABLE>
--------------------------------------------------------------------------------

See Combined Notes to Financial Statements.

92
<PAGE>

EVERGREEN
Select Equity Funds
Statements of Operations
Year Ended June 30, 2000

<TABLE>
<CAPTION>
Small Social
Small Cap Company Principles Strategic Strategic
Growth Fund Value Fund Fund Growth Fund Value Fund
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income
Dividends (net of
foreign withholding
taxes of $0, $13,505,
$4,423, $1,781 and
$7,376, respectively).. $ 216,179 $ 978,695 $ 1,004,444 $ 2,880,866 $ 12,167,830
Interest................ 220,830 219,195 188,356 2,484,025 1,601,219
Securities lending
income................. 120,787 0 53,467 0 0
-----------------------------------------------------------------------------------------------
Total investment
income................. 557,796 1,197,890 1,246,267 5,364,891 13,769,049
-----------------------------------------------------------------------------------------------
Expenses
Advisory fee............ 812,680 743,000 783,968 4,435,042 4,821,525
Distribution Plan
expenses............... 0 1,066 148 43,065 8,544
Administrative services
fees................... 76,272 46,675 58,587 458,214 463,990
Transfer agent fee...... 28,429 1,420 363 81,697 45,754
Custodian fee........... 34,700 30,234 23,976 174,906 180,246
Other................... 89,075 85,522 64,576 208,863 248,685
-----------------------------------------------------------------------------------------------
Total expenses......... 1,041,156 907,917 931,618 5,401,787 5,768,744
Less: Expense
reductions............ (12,177) (5,882) (3,926) (34,838) (31,280)
Fee waivers ......... 0 (82,871) (69,928) (494,372) (298,913)
-----------------------------------------------------------------------------------------------
Net expenses........... 1,028,979 819,164 857,764 4,872,577 5,438,551
-----------------------------------------------------------------------------------------------
Net investment income
(loss)................. (471,183) 378,726 388,503 492,314 8,330,498
-----------------------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities
Net realized gains or
losses on:
Securities............. 33,929,174 (9,126,727) 35,047,316 175,499,643 10,443,563
-----------------------------------------------------------------------------------------------
Net change in unrealized
gains or losses on
securities ............ 14,955,520 4,079,898 (19,536,177) 94,994,786 (70,184,049)
-----------------------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities .. 48,884,694 (5,046,829) 15,511,139 270,494,429 (59,740,486)
-----------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from operations........ $48,413,511 $(4,668,103) $ 15,899,642 $270,986,743 $(51,409,988)
</TABLE>
--------------------------------------------------------------------------------

See Combined Notes to Financial Statements.

93
<PAGE>

EVERGREEN
Select Equity Funds
Statements of Changes in Net Assets
Year Ended June 30, 2000

<TABLE>
<CAPTION>
Diversified Large Cap Secular
Core Equity Value Blend Growth
Balanced Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operations
Net investment income
(loss)................... $ 19,663,684 $ 12,065,326 $ 2,480,549 $ 1,773,035 $ (2,026,982)
Net realized gains or
losses on securities
and futures transactions.. 98,574,932 78,830,929 48,340,554 49,732,268 184,365,616
Net change in unrealized
gains or losses on
securities and futures
transactions............. (8,771,394) 88,965,879 (18,469,695) (39,104,870) 118,462,891
-------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from operations.......... 109,467,222 179,862,134 32,351,408 12,400,433 300,801,525
-------------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class I................... (21,056,423) (11,587,593) (2,893,261) (1,768,740) (1,204)
Class IS.................. (24,980) (95,608) (3,796) (1,113) 0
Net realized gains
Class I................... (24,379,440) (187,467,729) (20,189,344) (48,438,597) (21,267,232)
Class IS.................. (36,122) (3,188,973) (52,325) (54,462) (852)
-------------------------------------------------------------------------------------------------------
Total distributions to
shareholders............. (45,496,965) (202,339,903) (23,138,726) (50,262,912) (21,269,288)
-------------------------------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares
sold..................... 85,046,898 279,188,792 40,222,954 10,925,626 125,664,983
Payment for shares
redeemed................. (330,831,602) (645,261,014) (194,883,456) (183,066,386) (298,201,747)
Net asset value of shares
issued in reinvestment of
distributions............ 36,443,265 188,953,604 20,553,401 48,574,508 21,268,857
Net asset value of shares
issued in acquisition.... 88,725,755 794,468,739 0 0 750,366,912
-------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from capital share
transactions............. (120,615,684) 617,350,121 (134,107,101) (123,566,252) 599,099,005
-------------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets.................. (56,645,427) 594,872,352 (124,894,419) (161,428,731) 878,631,242
Net assets
Beginning of period....... 659,137,807 1,943,722,912 607,738,783 438,756,964 40,129,017
-------------------------------------------------------------------------------------------------------
End of period............. $ 602,492,380 $2,538,595,264 $ 482,844,364 $ 277,328,233 $ 918,760,259
-------------------------------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income (loss).. $ 201,551 $ (12,980) $ (31,097) $ 2,934 $ (9,300)
-------------------------------------------------------------------------------------------------------
</TABLE>

See Combined Notes to Financial Statements.

94
<PAGE>

EVERGREEN
Select Equity Funds
Statements of Changes in Net Assets
Year Ended June 30, 2000

<TABLE>
<CAPTION>
Small Cap Small Social
Growth Company Principles Strategic Strategic
Fund Value Fund Fund Growth Fund Value Fund
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operations
Net investment income
(loss)................ $ (471,183) $ 378,726 $ 388,503 $ 492,314 $ 8,330,498
Net realized gains or
losses on
securities............ 33,929,174 (9,126,727) 35,047,316 175,499,643 10,443,563
Net change in
unrealized gains or
losses on
securities............ 14,955,520 4,079,898 (19,536,177) 94,994,786 (70,184,049)
-------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from
operations............ 48,413,511 (4,668,103) 15,899,642 270,986,743 (51,409,988)
-------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income..
Class I................ 0 (371,983) (393,899) (480,837) (9,271,061)
Class IS............... 0 (2,542) (147) (1,379) (36,985)
Net realized gains.....
Class I................ 0 0 (24,231,939) (97,463,054) (9,327,347)
Class IS............... 0 0 (11,316) (2,592,735) (31,597)
-------------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... 0 (374,525) (24,637,301) (100,538,005) (18,666,990)
-------------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 59,962,257 25,169,194 7,430,349 302,913,553 292,606,251
Payment for shares
redeemed.............. (19,045,047) (60,595,022) (72,685,946) (228,216,756) (164,935,655)
Net asset value of
shares issued in
reinvestment of
distributions......... 0 308,765 24,257,983 99,830,239 13,346,048
Net asset value of
shares issued in
acquisition........... 0 0 0 2,592,329 153,449,048
-------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 40,917,210 (35,117,063) (40,997,614) 177,119,365 294,465,692
-------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets................ 89,330,721 (40,159,691) (49,735,273) 347,568,103 224,388,714
Net assets
Beginning of period.... 70,113,537 108,181,122 134,536,025 493,769,324 532,805,514
-------------------------------------------------------------------------------------------------
End of period.......... $159,444,258 $ 68,021,431 $ 84,800,752 $ 841,337,427 $ 757,194,228
-------------------------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income
(loss)................. $ (557) $ (9,023) $ (10,900) $ 2,890 $ (50,344)
-------------------------------------------------------------------------------------------------
</TABLE>

See Combined Notes to Financial Statements.

95
<PAGE>

EVERGREEN
Select Equity Funds
Statements of Changes in Net Assets
Year Ended June 30, 1999

<TABLE>
<CAPTION>
Diversified Large Cap Secular
Balanced Core Equity Value Blend Growth
Fund Fund Fund Fund Fund (a)
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operations
Net investment income.. $ 23,946,017 $ 15,255,869 $ 5,814,173 $ 3,767,039 $ 9,089
Net realized gains or
losses on securities
and foreign currency
related transactions.. 928,390 190,887,254 17,372,195 35,527,151 (41,350)
Net change in
unrealized gains or
losses on securities
and foreign currency
related transactions.. 12,500,436 (31,676,691) 23,916,181 (7,056,882) 648,999
--------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from
operations............ 37,374,843 174,466,432 47,102,549 32,237,308 616,738
--------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income (b)
Class I................ (22,214,234) (14,533,736) (5,432,863) (415,801) (7,798)
Class IS............... (71,558) (136,355) (6,977) (2,046) (1)
Class IC (c)........... 0 0 0 (3,330,655) 0
Net realized gains (b)
Class I................ (7,372,020) (160,679,308) (17,317,740) (1,886,318) 0
Class IS............... (32,664) (2,314,062) (34,597) (32,097) 0
Class IC (c)........... 0 0 0 (50,651,105) 0
--------------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (29,690,476) (177,663,461) (22,792,177) (56,318,022) (7,799)
--------------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 107,820,701 194,557,250 67,508,083 46,937,384 39,940,669
Payment for shares
redeemed.............. (200,572,408) (345,341,133) (303,364,284) (147,493,668) (425,994)
Net asset value of
shares issued in
reinvestment of
distributions......... 20,140,059 127,043,887 21,722,516 51,527,385 5,403
Net asset value of
shares issued in
acquisition........... 0 0 0 0 0
--------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... (72,611,648) (23,739,996) (214,133,685) (49,028,899) 39,520,078
--------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............... (64,927,281) (26,937,025) (189,823,313) (73,109,613) 40,129,017
Net assets
Beginning of period.... 724,065,088 1,970,659,937 797,562,096 511,866,577 0
--------------------------------------------------------------------------------------------------
End of period.......... $659,137,807 $1,943,722,912 $ 607,738,783 $ 438,756,964 $40,129,017
--------------------------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income...... 1,619,270 56,683 414,562 (8,169) 10,878
--------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period from February 26, 1999 (commencement of operations) to June
30, 1999.
(b) The Large Cap Blend Fund redesignated $240,950 (or $0.02 per share for
Classes I, IS, and IC) distributions from net investment income declared
after January 1, 1999, as capital gains distributions after January 1,
1999.
(c) On April 30, 1999, Class IC shares of the Large Cap Blend Fund and Social
Principles Fund were converted to Class I shares. Shareholders of Class IC
shares became owners of that number of Class I shares having a net asset
value equal to the net asset value of their shares immediately prior to the
close of business on April 30, 1999.

See Combined Notes to Financial Statements.

96
<PAGE>

EVERGREEN
Select Equity Funds
Statements of Changes in Net Assets
Year Ended June 30, 1999

<TABLE>
<CAPTION>
Small Cap Small Social
Growth Company Principles Strategic Strategic
Fund Value Fund Fund Growth Fund Value Fund
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operations
Net investment income.. $ (423,502) $ 253,866 $ 502,889 $ 1,061,817 $ 5,478,583
Net realized gains or
losses on securities
and foreign currency
related transactions.. (2,938,420) (8,481,510) 20,463,898 100,654,235 9,159,666
Net change in
unrealized gains or
losses on securities
and foreign currency
related transactions.. 6,375,643 2,615,130 (22,240,460) 51,252,431 24,194,498
-----------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from
operations............ 3,013,721 (5,612,514) (1,273,673) 152,968,483 38,832,747
-----------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class I................ 0 (313,271) (78,008) (1,186,581) (4,545,875)
Class IS............... 0 (102) (238) (10,641) (17,533)
Class IC (a)........... 0 0 (537,557) 0 0
Net realized gains ....
Class I................ (100,814) (363,011) (157,473) (42,795,680) (7,731,471)
Class IS............... 0 0 (6,403) (947,111) (36,621)
Class IC (a)........... 0 0 (8,960,041) 0 0
-----------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (100,814) (676,384) (9,739,720) (44,940,013) (12,331,500)
-----------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 3,242,108 49,048,796 14,856,248 98,098,328 281,162,284
Payment for shares
redeemed.............. (5,425,723) (12,850,016) (58,178,607) (282,527,098) (72,083,435)
Net asset value of
shares issued in
reinvestment of
distributions......... 100,757 624,439 9,074,037 40,521,982 8,705,025
Net asset value of
shares issued in
acquisition........... 0 0 0 205,742,310 0
-----------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... (2,082,858) 36,823,219 (34,248,322) 61,835,522 217,783,874
-----------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............... 830,049 30,534,321 (45,261,715) 169,863,992 244,285,121
Net assets
Beginning of period.... 69,283,488 77,646,801 179,797,740 323,905,332 288,520,393
-----------------------------------------------------------------------------------------------
End of period.......... $70,113,537 $108,181,122 $134,536,025 $ 493,769,324 $532,805,514
-----------------------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income...... 0 (460) (1,986) (7,208) 938,131
-----------------------------------------------------------------------------------------------
</TABLE>
(a) On April 30, 1999, Class IC shares of the Large Cap Blend Fund and Social
Principles Fund were converted to Class I shares. Shareholders of Class IC
shares became owners of that number of Class I shares having a net asset
value equal to the net asset value of their shares immediately prior to the
close of business on April 30, 1999.

See Combined Notes to Financial Statements.

97
<PAGE>

Combined Notes to Financial Statements

1. ORGANIZATION

The Evergreen Select Equity Funds consist of Evergreen Select Balanced Fund
("Balanced Fund"), Evergreen Select Core Equity Fund ("Core Equity Fund"), Ev-
ergreen Select Diversified Value Fund ("Diversified Value Fund"), Evergreen Se-
lect Large Cap Blend Fund ("Large Cap Blend Fund"), Evergreen Select Secular
Growth Fund ("Secular Growth Fund"), Evergreen Select Small Cap Growth Fund
("Small Cap Growth Fund"), Evergreen Select Small Company Value Fund ("Small
Company Value Fund"), Evergreen Select Social Principles Fund ("Social Princi-
ples Fund"), Evergreen Select Strategic Growth Fund ("Strategic Growth Fund")
and Evergreen Select Strategic Value Fund ("Strategic Value Fund"). Each Fund
is a diversified series of Evergreen Select Equity Trust (the "Trust"), a Dela-
ware business trust organized on September 18, 1997. The Trust is an open-end
management investment company registered under the Investment Company Act of
1940, as amended (the "1940 Act").

The Funds offer Institutional shares ("Class I") and Institutional Service
shares ("Class IS"). Each class of shares is sold without a front-end sales
charge or contingent deferred sales charge. Class IS shares pay an ongoing
service fee.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently fol-
lowed by the Funds in the preparation of their financial statements. The poli-
cies are in conformity with generally accepted accounting principles, which re-
quire management to make estimates and assumptions that affect amounts reported
herein. Actual results could differ from these estimates.

A. Valuation of Securities
Corporate bonds, U.S. government obligations, mortgage and other asset-backed
securities and other fixed-income securities are valued at prices provided by
an independent pricing service. In determining a price for normal institution-
al-size transactions, the pricing service uses methods based on market transac-
tions for comparable securities and analysis of various relationships between
similar securities which are generally recognized by institutional traders. Se-
curities for which valuations are not available from an independent pricing
service may be valued by brokers which use prices provided by market makers or
estimates of market value obtained from yield data relating to investments or
securities with similar characteristics.

Securities traded on a national securities exchange or included on the NASDAQ
National Market System ("NMS") and other securities traded in the over-the-
counter market are valued at the last reported sales price on the exchange
where the security is primarily traded. 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 re-
stricted securities, are valued at fair value as determined in good faith ac-
cording to procedures approved by the Board of Trustees.

Mutual fund shares held in a Fund are valued at the net asset value of each mu-
tual fund.

Short-term investments with remaining maturities of 60 days or less are carried
at amortized cost, which approximates market value.

B. Repurchase Agreements
Each 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. Each Fund monitors the adequacy of the collat-
eral daily and will require the seller to provide additional collateral in the
event the market value of the securities pledged falls below the carrying value
of the repurchase agreement, including accrued interest. Each Fund will only
enter into repurchase agreements with banks and other financial institutions,
which are deemed by the investment advisor to be creditworthy pursuant to
guidelines established by the Board of Trustees.

98
<PAGE>

Combined Notes to Financial Statements (continued)

Pursuant to an exemptive order issued by the Securities and Exchange Commis-
sion, the Funds may transfer uninvested cash balances into a joint trading ac-
count. These balances are invested in one or more repurchase agreements that
are fully collateralized by U.S. Treasury and/or federal agency obligations.

C. Foreign Currency
The books and records of the Funds are maintained in United States (U.S.) dol-
lars. Foreign currency amounts are translated into U.S. dollars as follows:
market value of investments, other assets and liabilities at the daily rate of
exchange; purchases and sales of investments 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 is a component of net unrealized gains or losses on se-
curities and foreign currency related transactions. Net realized foreign cur-
rency gain or loss on foreign currency related transactions includes foreign
currency gains and losses between trade date and settlement date on investment
securities transactions, foreign currency related transactions and the differ-
ence 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 included in realized gain or loss
on securities.

D. Futures Contracts
In order to gain exposure to or protect against changes in security values, the
Funds may buy and sell futures contracts.

The initial margin deposited with a broker when entering into a futures trans-
action is subsequently adjusted by daily payments or receipts ("variation mar-
gin") as the value of the contract changes. Such changes are recorded as
unrealized gains or losses. Realized gains or losses are recognized on closing
the contract.

Risks of entering into futures contracts include (i) the possibility of an il-
liquid market for the contract, (ii) the possibility that a change in the value
of the contract may not correlate with changes in the value of the underlying
instrument or index, and (iii) the credit risk that the other party will not
fulfill their obligations under the contract. Futures contracts also 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 Funds may lend portfo-
lio securities to brokers, dealers and other qualified financial organizations.
The Funds' investment advisers will monitor the creditworthiness of such bor-
rowers. Loans of securities may not exceed 33 1/3% of a Fund's total assets and
will be collateralized 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 market value of the loaned securities, including accrued interest. The
Fund monitors the adequacy of the collateral daily and will require the bor-
rower to provide additional collateral in the event the value of the collateral
falls below 100% of the market value of the securities on loan. While such se-
curities are on loan, the borrower will pay a Fund any income accruing thereon,
and the Fund may invest any cash collateral received in portfolio securities,
thereby increasing its return. A Fund will have the right to call any such loan
and obtain the securities loaned at any time on five days' notice. Any gain or
loss in the market price of the loaned securities, which occurs during the term
of the loan, would affect a Fund and its investors. A Fund may pay fees in con-
nection 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.

99
<PAGE>

Combined Notes to Financial Statements (continued)

G. Federal Taxes
The Funds have qualified and intend to continue to qualify as regulated invest-
ment companies under the Internal Revenue Code of 1986, as amended (the
"Code"). Thus, the Funds will not incur any federal income tax liability since
they are expected to distribute all of their net investment company taxable in-
come and net capital gains, if any, to their shareholders. The Funds also in-
tend to avoid any excise tax liability by making the required distributions un-
der the Code. Accordingly, no provision for federal taxes is required.

H. Distributions
Distributions from net investment income, if any, for the Funds are declared
and paid monthly. Distributions from net realized gains, if any, are paid at
least annually. To the extent that realized capital gains can be offset by cap-
ital loss carryforwards, it is each Fund's policy not to distribute such gains.
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. Reclassifications have been made to the Funds' components
of net assets to reflect income and gains available for distribution (or avail-
able capital loss carryovers, as applicable) under income tax regulations. The
primary permanent differences causing such reclassifications are due to net op-
erating losses and distributions from real estate investment trusts.

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.

J. Organization Expenses
Organization expenses for Small Cap Growth Fund are amortized to operations
over a five-year period on a straight-line basis. In the event any of the ini-
tial shares of the Funds are redeemed by any holder during the five-year amor-
tization period, redemption proceeds will be reduced by any unamortized organi-
zation expenses in the same proportion as the number of initial shares being
redeemed bears to the number of initial shares outstanding at the time of the
redemption.

3. INVESTMENT ADVISORY AGREEMENTS AND OTHER AFFILIATED TRANSACTIONS

First Union National Bank ("FUNB"), a subsidiary of First Union Corporation, is
the investment advisor to each Fund, other than Small Cap Growth Fund and Small
Company Value Fund, and is paid a management fee that is computed and paid
daily based on a percentage of the Funds' average daily net assets.

<TABLE>
<CAPTION>
Prior to
Current Rate 1/3/2000
---------------------
<S> <C> <C>
Balanced Fund............................. 0.52% 0.60%
Core Equity Fund.......................... 0.62 0.70
Diversified Value Fund.................... 0.52 0.60
Large Cap Blend Fund...................... 0.62 0.70
Secular Growth Fund....................... 0.62 0.70
Social Principles Fund.................... 0.72 0.80
Strategic Growth Fund..................... 0.62 0.70
Strategic Value Fund...................... 0.62 0.70

Evergeen Investment Management Co. ("EIMC"), an indirect wholly owned subsidi-
ary of FUNB, is the investment advisor to Small Cap Growth Fund. In return for
its services, EIMC is paid an annual advisory fee that is computed and paid
daily based on the average daily net assets of the Fund in accordance with the
following schedule:

<CAPTION>
Prior to
Average daily net assets Current Rate 1/3/2000
-----------------------------------------------------------------
<S> <C> <C>
First $100 Million........................ 0.71% 0.80%
Next $150 Million......................... 0.66 0.75
Over $250 Million......................... 0.56 0.65
</TABLE>

Evergreen Asset Management Corp. ("EAMC"), a wholly-owned subsidiary of FUNB,
is the investment advisor to Small Company Value Fund. Small Company Value Fund
pays EAMC an annual fee of 0.82% of its average

100
<PAGE>

Combined Notes to Financial Statements (continued)

daily net assets. Prior to January 3, 2000, the Fund paid EAMC an annual fee of
0.90% of its average daily net assets.

Lieber & Company, an affiliate of First Union, is the investment sub-advisor to
Small Company Value Fund and also provides brokerage services with respect to
substantially all security transactions of the Fund effected on the New York or
American Stock Exchanges. For the year ended June 30, 2000, Small Company Value
Fund incurred brokerage commissions of $159,609 with Lieber & Company. Lieber &
Company is reimbursed by EAMC for providing investment sub-advisory services at
no additional expense to the Fund.

During the year ended June 30, 2000, the amount of investment advisory fees
waived by each of the investment advisors, other than EIMC, and the impact on
each Fund's annualized expense ratio represented as a percentage of its average
daily net assets were as follows:

<TABLE>
<CAPTION>
% of Average
Total Fee Daily Net Assets
Waivers (annualized)
---------------------------
<S> <C> <C>
Balanced Fund....................... $ 523,595 0.08%
Core Equity Fund.................... 2,031,773 0.08
Diversified Value Fund.............. 725,388 0.14
Large Cap Blend Fund................ 306,377 0.09
Secular Growth Fund................. 736,074 0.09
Small Company Value Fund............ 82,871 0.10
Social Principles Fund.............. 69,928 0.07
Strategic Growth Fund............... 494,372 0.07
Strategic Value Fund................ 298,913 0.04
</TABLE>

Evergreen Investment Services ("EIS"), an indirect, wholly owned subsidiary of
FUNB, is the administrator to the Funds. As administrator, EIS provides the
Funds with facilities, equipment and personnel. Prior to May 1, 2000, The BISYS
Group, Inc. ("BISYS") served as the sub-administrator to the Funds and provided
the officers of the Funds. Officers of the Funds and affiliated Trustees re-
ceive no compensation directly from the Funds.

For its services, each Fund pays the administrator a fee at the annual rate of
0.10% of each Fund's average daily net assets. For each Fund, except Small Cap
Growth Fund, the sub-administrator was paid by the administrator out of its
fees until the sub-administration agreement with BISYS was terminated on
April 30, 2000. Prior to January 3, 2000, the administrator and sub-administra-
tor for each of the Funds, except Small Cap Growth Fund, were entitled to an
annual fee based on the combined average daily net assets of all the funds ad-
ministered by EIS for which First Union or its investment advisory subsidiaries
are also the investment advisors. The administration fee was calculated by ap-
plying percentage rates, which started at 0.05% and declined to 0.01% per annum
as net assets increased, to the average daily net assets of each Fund. The sub-
administration fee was calculated by applying percentage rates, which started
at 0.01% and declined to 0.004% per annum as net assets increased, to the aver-
age daily net assets of each Fund.

For the year ended June 30, 2000, the following amounts were paid for adminis-
tration and sub-administration services:
<TABLE>
<CAPTION>
Administration Sub-administration
---------------------------------
<S> <C> <C>
Balanced Fund................. $ 359,432 $ 22,755
Core Equity Fund.............. 1,464,103 111,583
Diversified Value Fund........ 292,967 18,977
Large Cap Blend Fund.......... 180,377 12,808
Secular Growth Fund........... 529,073 25,553
Small Company Value Fund...... 43,538 3,137
Social Principles Fund........ 54,838 3,749
Strategic Growth Fund......... 436,884 21,330
Strategic Value Fund.......... 440,792 23,198
</TABLE>

Prior to January 3, 2000, the administration fee for Small Cap Growth Fund was
paid by the investment advisor and was not a fund expense. However, during the
year ended June 30, 2000 the Fund reimbursed EIMC in the amount of $4,743 for
providing certain administration and accounting expenses. The sub-administra-
tion fee was paid by the investment advisor until the sub-administration agree-
ment with BISYS was terminated on April 30, 2000.

101
<PAGE>

Combined Notes to Financial Statements (continued)

Evergreen Service Company ("ESC"), an indirect, wholly owned subsidiary of
FUNB, is the transfer and dividend disbursing agent for the Funds.

4. DISTRIBUTION PLANS

Evergreen Distributor, Inc. ("EDI"), a wholly owned subsidiary of BISYS, serves
as principal underwriter to the Funds.

Each Fund has adopted Distribution Plans, as allowed by Rule 12b-1 of the 1940
Act, for Class IS shares. 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
IS incurs distribution fees equal to 0.25% of the average daily net asset of
the class. Distribution Plan expenses are calculated and paid daily.

Each of the Distribution Plans may be terminated at any time by vote of the In-
dependent Trustees or by vote of a majority of the outstanding voting shares of
the respective class.

5. CONVERSION INFORMATION

On July 9, 1999, Balanced Fund, Core Equity Fund, Secular Growth Fund, Strate-
gic Growth Fund and Strategic Value Fund (collectively "Acquiring Evergreen
Funds") acquired substantially all of the net assets and identified liabilities
of certain common trust funds managed by FUNB into the Acquiring Evergreen
Funds. The net assets, consisting primarily of portfolio securities, were ac-
quired either through a taxable or tax-free exchange for Class I shares of the
Acquiring Evergreen Funds.

The following summarizes pertinent data related to the Funds on the date of the
acquisition:

<TABLE>
<CAPTION>
Evergreen Unrealized
Total Total Fund Appreciation
Acquiring Evergreen Shares Net Assets NAV/share of
Fund Common Trust Fund Issued Acquired Class I Securities
<S> <C> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------
Balanced Fund CoreStates Balanced Fund 422,321 $ 5,780,695 $ 13.68 $ 0
CoreStates Balanced Trust 6,059,738 82,945,060 20,569,515
--------- ------------ ------------
Total 6,482,059 88,725,755 20,569,515
--------- ------------ ------------
Core Equity Fund CoreStates Growth and Income Equity Trust 6,974,611 595,233,256 $ 85.34 134,355,837
Signet Capital Growth 67,230 5,737,565 3,701,178
Signet Investors Equity Class A 592,625 50,576,342 36,302,394
Signet Investors Equity Class B 123,773 10,563,173 7,475,528
--------- ------------ ------------
Total 7,758,239 662,110,336 181,834,937
--------- ------------ ------------
Secular Growth Fund CoreStates Charitable Equity Trust 1,069,362 110,877,230 $103.69 31,871,390
CoreStates Growth and Income Fund 787,473 81,649,376 0
CoreStates Growth Equity Fund 4,185,687 433,994,394 0
CoreStates Growth Equity Trust 1,194,440 123,845,912 36,115,475
--------- ------------ ------------
Total 7,236,962 750,366,912 67,986,865
--------- ------------ ------------
Strategic Growth Fund CoreStates Union County Equity Trust 70,063 2,592,329 $ 37.00 1,356,557
--------- ------------ ------------
Strategic Value Fund CoreStates Value Equity Fund 341,237 80,405,690 $235.63 0
CoreStates Value Equity Trust 309,990 73,043,358 11,453,813
--------- ------------ ------------
Total 651,227 $153,449,048 $ 11,453,813
--------- ------------ ------------
</TABLE>

The above amounts are reflected in the Statements of Changes in Net Assets for
the year ended June 30, 2000.

6. CLASS IC CONVERSION

On April 30, 1999, the Large Cap Blend Fund and Social Principles Fund con-
verted their respective Class IC shares to Class I shares. Shareholders of
Class IC shares became owners of that number of Class I shares having a net as-
set value equal to the net asset value of their shares immediately prior to the
close of business on April 30, 1999. Since Class IC shares contributed the ma-
jority of the net assets and the shareholders to the

102
<PAGE>

Combined Notes to Financial Statements (continued)

newly combined Class I, and its operating results for prior periods are carried
forward as the accounting survivor. The following chart summarizes pertinent
data related to each Fund's Class IC shares on the date of conversion:

<TABLE>
<CAPTION>
Large Cap Social
Blend Fund Principles Fund
<S> <C> <C>
-------------------------
Class I shares issued.............. 9,604,208 3,712,810
Net assets of Class IC............. $452,516,632 $126,994,084
Net asset value per share of Class
I................................. $ 47.12 $ 34.20
</TABLE>

7. ACQUISITIONS

Effective the close of business on July 30, 1999, Core Equity Fund acquired the
net assets and liabilities of Evergreen Select Equity Income Fund, an open-end
management investment company registered under the 1940 Act in an exchange of
shares. The net assets were exchanged through a tax-free exchange of 1,629,831
Class I shares and 14,454 Class IS shares of Core Equity Fund. The acquired net
assets consisted primarily of portfolio securities with unrealized appreciation
of $15,463,739. Aggregate net assets of Core Equity Fund and Evergreen Select
Equity Income Fund immediately before the acquisition were $2,449,655,426 and
$132,358,403, respectively. The aggregate net assets of Core Equity Fund after
the acquisition were $2,582,013,829. The above amounts are reflected in the
Statements of Changes in Net Assets for the year ended June 30, 2000.

Effective the close of business on July 24, 1998, Strategic Growth Fund ac-
quired the net assets of CoreFund Equity Growth Fund, an open-end management
investment company registered under the 1940 Act in an exchange of shares. The
net assets were exchanged through a tax-free exchange for 5,297,535 Class I
shares and 186,381 Class IS shares of Strategic Growth Fund. The acquired net
assets consisted primarily of portfolio securities with unrealized appreciation
of $66,587,357. The aggregate net assets of CoreFund Equity Growth Fund and
Strategic Growth Fund immediately before the acquisition were $205,742,310 and
$326,300,095, respectively. The aggregate net assets of Strategic Growth Fund
after the acquisition were $532,042,405. The above amounts are reflected in
proceeds from shares sold in the Statements of Changes in Net Assets for the
year ended June 30, 1999.

103
<PAGE>

Combined Notes to Financial Statements (continued)

8. CAPITAL SHARE TRANSACTIONS

The Funds have an unlimited number of shares of beneficial interest with $0.001
par value authorized. Shares of beneficial interest of the Funds are currently
divided into Class I and/or Class IS. Transactions in shares of the Funds were
as follows:

Balanced Fund

<TABLE>
<CAPTION>
Year Ended June 30,
-------------------------------------------------------
2000 1999
-------------------------- ---------------------------
Shares Amount Shares Amount
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares
Shares sold............. 5,958,011 $ 83,516,003 7,848,229 $ 102,258,212
Shares redeemed......... (23,823,123) (329,841,924) (14,836,155) (195,030,850)
Shares issued in
reinvestment of
distributions.......... 2,622,339 36,429,342 1,521,793 20,036,612
Shares issued in
acquisition of:
Corestates Balanced
Fund.................. 422,321 5,780,695 0 0
Corestates Balanced
Trust................. 6,059,738 82,945,060 0 0
--------------------------------------------------------------------------------
Net decrease............ (8,760,714) (121,170,824) (5,466,133) (72,736,026)
--------------------------------------------------------------------------------
Class IS Shares
Shares sold............. 109,074 1,530,895 422,203 5,562,489
Shares redeemed......... (71,241) (989,678) (416,181) (5,541,558)
Shares issued in
reinvestment of
distributions.......... 998 13,923 7,749 103,447
--------------------------------------------------------------------------------
Net increase............ 38,831 555,140 13,771 124,378
--------------------------------------------------------------------------------
Net decrease............ $(120,615,684) $ (72,611,648)
--------------------------------------------------------------------------------
</TABLE>

Core Equity Fund

<TABLE>
<CAPTION>
Year Ended June 30,
-----------------------------------------------------
2000 1999
------------------------- --------------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares
Shares sold............. 2,568,791 $ 218,230,423 1,894,587 $ 162,933,860
Shares redeemed......... (7,071,960) (604,034,297) (3,733,442) (323,280,104)
Shares issued in
reinvestment of
distributions.......... 2,199,139 186,575,643 1,482,376 125,141,384
Shares issued in
acquisition of:
Corestates Growth and
Income Equity Trust... 6,974,611 595,233,256 0 0
Signet Capital Growth.. 67,230 5,737,565 0 0
Signet Investors Equity
Class A............... 592,625 50,576,342 0 0
Signet Investors Equity
Class B............... 123,773 10,563,173 0 0
Evergreen Select Equity
Income Fund........... 1,629,831 131,274,544 0 0
------------------------------------------------------------------------------
Net increase
(decrease)............. 7,084,040 594,156,649 (356,479) (35,204,860)
------------------------------------------------------------------------------
Class IS Shares
Shares sold............. 755,063 60,958,369 388,096 31,623,390
Shares redeemed......... (515,532) (41,226,717) (271,386) (22,061,029)
Shares issued in
reinvestment of
distributions.......... 30,099 2,377,961 24,042 1,902,503
Shares issued in
acquisition of:
Evergreen Select Equity
Income Fund........... 14,454 1,083,859 0 0
------------------------------------------------------------------------------
Net increase............ 284,084 23,193,472 140,752 11,464,864
------------------------------------------------------------------------------
Net increase
(decrease)............. $ 617,350,121 $ (23,739,996)
------------------------------------------------------------------------------
</TABLE>

104
<PAGE>

Combined Notes to Financial Statements (continued)

Diversified Value Fund

<TABLE>
<CAPTION>
Year Ended June 30,
------------------------------------------------------
2000 1999
------------------------- ---------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares
Shares sold............. 1,477,525 $ 40,222,418 2,710,532 $ 66,392,052
Shares redeemed......... (7,107,545) (194,799,765) (12,054,441) (303,229,194)
Shares issued in
reinvestment of
distributions.......... 747,569 20,498,291 864,540 21,680,943
-------------------------------------------------------------------------------
Net decrease............ (4,882,451) (134,079,056) (8,479,369) (215,156,199)
-------------------------------------------------------------------------------
Class IS Shares
Shares sold............. 19 536 46,088 1,116,031
Shares redeemed......... (3,098) (83,691) (5,221) (135,090)
Shares issued in
reinvestment of
distributions.......... 2,036 55,110 1,677 41,573
-------------------------------------------------------------------------------
Net increase
(decrease)............. (1,043) (28,045) 42,544 1,022,514
-------------------------------------------------------------------------------
Net decrease............ $(134,107,101) $(214,133,685)
-------------------------------------------------------------------------------

Large Cap Blend Fund

<CAPTION>
Year Ended June 30,
------------------------------------------------------
2000 1999
------------------------- ---------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares
Shares sold............. 257,437 $ 10,822,160 281,613 $ 13,021,813
Shares redeemed......... (4,118,960) (182,737,375) (1,136,453) (53,049,940)
Shares issued in
reinvestment of
distributions.......... 1,139,647 48,518,959 40,730 1,853,814
Shares issued from
conversion of Class IC
(a).................... 0 0 9,604,208 452,516,632
-------------------------------------------------------------------------------
Net increase
(decrease)............. (2,721,876) (123,396,256) 8,790,098 414,342,319
-------------------------------------------------------------------------------
Class IS Shares
Shares sold............. 2,205 103,466 7,147 328,082
Shares redeemed......... (7,635) (329,011) (5,917) (269,541)
Shares issued in
reinvestment of
distributions.......... 1,305 55,549 745 33,874
-------------------------------------------------------------------------------
Net increase
(decrease)............. (4,125) (169,996) 1,975 92,415
-------------------------------------------------------------------------------
Class IC Shares
Shares sold............. 0 0 745,024 33,587,489
Shares redeemed......... 0 0 (2,036,907) (94,174,187)
Shares issued in
reinvestment of
distributions.......... 0 0 1,090,492 49,639,697
Shares converted in
conversion to Class I
(a).................... 0 0 (9,604,208) (452,516,632)
-------------------------------------------------------------------------------
Net decrease............ 0 0 (9,805,599) (463,463,633)
-------------------------------------------------------------------------------
Net decrease............ $(123,566,252) $ (49,028,899)
-------------------------------------------------------------------------------
</TABLE>
(a) On April 30, 1999, Class IC shares of the Fund were converted to Class I
shares.

105
<PAGE>

Combined Notes to Financial Statements (continued)

Secular Growth Fund

<TABLE>
<CAPTION>
Year Ended June 30,
---------------------------------------------------
2000 1999 (a)
------------------------- ------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares
Shares sold.............. 956,398 $ 124,180,633 405,610 $ 39,939,701
Shares redeemed.......... (2,487,865) (297,954,475) (4,346) (425,994)
Shares issued in
reinvestment of
distributions........... 158,837 21,268,005 54 5,402
Shares issued in
acquisition of:
Corestate Charitable
Equity Trust........... 1,069,362 110,877,230 0 0
Corestate Growth and
Income Fund............ 787,473 81,649,376 0 0
Corestate Growth Equity
Fund................... 4,185,687 433,994,394 0 0
Corestate Growth Equity
Trust.................. 1,194,440 123,845,912 0 0
-------------------------------------------------------------------------------
Net increase............. 5,864,332 597,861,075 401,318 39,519,109
-------------------------------------------------------------------------------
Class IS Shares
Shares sold.............. 9,872 1,484,350 10 968
Shares redeemed.......... (1,585) (247,272) 0 0
Shares issued in
reinvestment of
distributions........... 6 852 0 1
-------------------------------------------------------------------------------
Net increase............. 8,293 1,237,930 10 969
-------------------------------------------------------------------------------
Net increase............. $ 599,099,005 $ 39,520,078
-------------------------------------------------------------------------------
(a) For the period from February 26, 1999 (commencement of class operations) to
June 30, 1999.

Small Cap Growth Fund

<CAPTION>
Year Ended June 30,
---------------------------------------------------
2000 1999
------------------------- ------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares
Shares sold.............. 2,873,306 $ 59,962,257 284,105 $ 3,242,108
Shares redeemed.......... (1,002,945) (19,045,047) (437,071) (5,425,723)
Shares issued in
reinvestment of
distributions........... 0 0 8,734 100,757
-------------------------------------------------------------------------------
Net increase (decrease).. 1,870,361 $ 40,917,210 (144,232) $ (2,082,858)
-------------------------------------------------------------------------------

Small Company Value Fund

<CAPTION>
Year Ended June 30,
---------------------------------------------------
2000 1999 (a)
------------------------- ------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares
Shares sold.............. 2,871,572 $ 23,912,799 5,762,869 $ 48,213,008
Shares redeemed.......... (7,371,065) (60,575,443) (1,437,069) (12,034,887)
Shares issued in
reinvestment of
distributions........... 36,664 306,236 74,799 624,337
-------------------------------------------------------------------------------
Net increase (decrease).. (4,462,829) (36,356,408) 4,400,599 36,802,458
-------------------------------------------------------------------------------
Class IS Shares
Shares sold.............. 160,423 1,256,395 101,492 835,890
Shares redeemed.......... (2,592) (19,579) (101,371) (815,129)
Shares issued in
reinvestment of
distributions........... 312 2,529 0 0
-------------------------------------------------------------------------------
Net increase............. 158,143 1,239,345 121 20,761
-------------------------------------------------------------------------------
Net increase (decrease).. $ (35,117,063) $ 36,823,219
-------------------------------------------------------------------------------
</TABLE>
(a) For Class IS, for the period from December 31, 1998 (commencement of class
operations) to June 30, 1999.

106
<PAGE>

Combined Notes to Financial Statements (continued)

Social Principles Fund

<TABLE>
<CAPTION>
Year Ended June 30,
---------------------------------------------------
2000 1999
------------------------ -------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares
Shares sold.............. 228,168 $ 7,029,403 90,138 $ 3,145,258
Shares redeemed.......... (2,237,783) (72,537,081) (225,918) (8,155,311)
Shares issued in
reinvestment of
distributions........... 872,387 24,246,520 4,705 162,875
Shares issued from
conversion of Class IC
(a)..................... 0 0 3,712,810 126,994,084
-------------------------------------------------------------------------------
Net increase (decrease).. (1,137,228) (41,261,158) 3,581,735 122,146,906
-------------------------------------------------------------------------------
Class IS Shares
Shares sold.............. 11,432 400,946 4,670 159,277
Shares redeemed.......... (4,371) (148,865) (8,520) (297,123)
Shares issued in
reinvestment of
distributions........... 412 11,463 191 6,618
-------------------------------------------------------------------------------
Net increase (decrease).. 7,473 263,544 (3,659) (131,228)
-------------------------------------------------------------------------------
Class IC Shares
Shares sold.............. 0 0 337,062 11,551,713
Shares redeemed.......... 0 0 (1,429,917) (49,726,173)
Shares issued in
reinvestment of
distributions........... 0 0 256,850 8,904,544
Shares converted in
conversion to Class I
(a)..................... 0 0 (3,712,810) (126,994,084)
-------------------------------------------------------------------------------
Net decrease............. 0 0 (4,548,815) (156,264,000)
-------------------------------------------------------------------------------
Net decrease............. $(40,997,614) $ (34,248,322)
-------------------------------------------------------------------------------
</TABLE>
(a) On April 30, 1999, Class IC shares of the Fund were converted to Class I
shares.

Strategic Growth Fund

<TABLE>
<CAPTION>
Year Ended June 30,
----------------------------------------------------
2000 1999
------------------------- -------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares
Shares sold............. 6,455,935 $ 292,653,546 4,260,240 $ 93,242,573
Shares redeemed......... (4,922,957) (222,573,262) (7,535,767) (278,683,495)
Shares issued in
reinvestment of
distributions.......... 2,504,216 97,599,292 1,078,559 39,578,816
Shares issued in
acquisition of:
CoreFund Equity Growth
Fund.................. 0 0 5,297,535 198,759,540
Corestate Union County
Equity Trust.......... 70,063 2,592,329 0 0
-------------------------------------------------------------------------------
Net increase
(decrease)............. 4,107,257 170,271,905 3,100,567 52,897,434
-------------------------------------------------------------------------------
Class IS Shares
Shares sold............. 215,532 10,260,007 130,363 4,855,755
Shares redeemed......... (121,173) (5,643,494) (101,906) (3,843,603)
Shares issued in
reinvestment of
distributions.......... 57,523 2,230,947 25,744 943,166
Shares issued in
acquisition of CoreFund
Equity Growth Fund..... 0 0 186,381 6,982,770
-------------------------------------------------------------------------------
Net increase............ 151,882 6,847,460 240,582 8,938,088
-------------------------------------------------------------------------------
Net increase............ $ 177,119,365 $ 61,835,522
-------------------------------------------------------------------------------
</TABLE>

107
<PAGE>

Combined Notes to Financial Statements (continued)

Strategic Value Fund

<TABLE>
<CAPTION>
Year Ended June 30,
-------------------------------------------------
2000 1999
------------------------ -----------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares
Shares sold................ 1,301,450 $ 283,351,824 1,250,078 $278,450,304
Shares redeemed............ (728,101) (160,984,883) (322,534) (69,617,033)
Shares issued in
reinvestment of
distributions............. 57,710 13,296,673 40,648 8,661,803
Shares issued in
acquisition of:
Corestate Value Equity
Fund..................... 341,237 80,405,690 0 0
Corestate Value Equity
Trust.................... 309,990 73,043,358 0 0
------------------------------------------------------------------------------
Net increase............... 1,282,286 289,112,662 968,192 217,495,074
------------------------------------------------------------------------------
Class IS Shares
Shares sold................ 41,567 9,254,427 12,671 2,711,091
Shares redeemed............ (17,873) (3,950,772) (11,118) (2,466,402)
Shares issued in
reinvestment of
distributions............. 218 49,375 208 44,111
------------------------------------------------------------------------------
Net increase............... 23,912 5,353,030 1,761 288,800
------------------------------------------------------------------------------
Net increase............... $ 294,465,692 $217,783,874
------------------------------------------------------------------------------
</TABLE>

9. SECURITIES TRANSACTIONS

Cost of purchases and proceeds from sales of investment securities (excluding
short-term securities) were as follows for the year ended June 30, 2000:

<TABLE>
<CAPTION>
Cost of Proceeds from
Purchases Sales
<S> <C> <C>
---------------------------
Core Equity Fund.................... 1,205,887,137 996,475,175
Diversified Value Fund.............. 492,259,538 650,749,799
Large Cap Blend Fund................ 85,180,253 261,301,007
Secular Growth Fund................. 1,158,276,337 1,056,331,012
Small Cap Growth Fund............... 376,921,133 336,887,594
Small Company Value Fund............ 85,480,101 119,943,132
Social Principles Fund.............. 45,913,709 112,312,571
Strategic Growth Fund............... 1,005,262,274 962,418,037
Strategic Value Fund................ 492,178,330 217,261,003
</TABLE>

For the Balanced Fund, cost of purchases of U.S. government and non-U.S. gov-
ernment securities were $386,890,523 and $627,064,380, respectively; and the
Fund's proceeds from sale of U.S. government and non-U.S. government securities
were $400,149,457 and $794,298,710, respectively, for the year ended June 30,
2000.

At June 30, 2000, the Core Equity Fund and the Diversified Value Fund had open
futures contracts outstanding as follows:

Core Equity Fund

<TABLE>
<CAPTION>
Initial
Contract Value at Unrealized
Expiration Contracts Amount June 30, 2000 Loss
------------------------------------------------------------------
<S> <C> <C> <C> <C>
September 2000 S&P 500 $16,813,125 $16,515,811 $(297,314)
September 2000 S&P 500 2,232,000 2,202,108 (29,892)
September 2000 S&P 500 7,442,500 7,340,360 (102,140)
</TABLE>

Diversified Value Fund

<TABLE>
<CAPTION>
Initial
Contract Value at Unrealized
Expiration Contracts Amount June 30, 2000 Loss
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
September 2000 S&P 500 $7,487,500 $7,340,361 $(147,139)
</TABLE>

108
<PAGE>

Combined Notes to Financial Statements (continued)

The following Funds loaned securities during the year ended June 30, 2000 to
certain brokers who paid the Funds a negotiated lenders' fee. These fees are
included in interest income. At June 30, 2000, the value of securities on loan,
the value of collateral (including accrued interest) and the amount of income
earned from securities lending were as follows:

<TABLE>
<CAPTION>
Securities
Value of Value of Lending
Fund Securities on Loan Collateral Income
-------------------------------------------------------------
<S> <C> <C> <C>
Large Cap Blend
Fund................ $ 9,434,408 $ 9,695,765 $ 49,699
Secular Growth Fund.. 0 0 196,594
Small Cap Growth
Fund................ 25,098,623 26,266,441 120,787
Social Principles
Fund................ 23,985,512 24,677,564 53,467
Strategic Growth
Fund................ 56,558,246 57,116,819 0
</TABLE>

On June 30, 2000 the composition of unrealized appreciation and depreciation on
securities based on the aggregate cost of securities for federal income tax
purposes were as follows:

<TABLE>
<CAPTION>
Net Unrealized
Gross Unrealized Gross Unrealized Appreciation/
Tax Cost Appreciation Depreciation (Depreciation)
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Balanced Fund... $ 545,350,630 $ 81,277,515 $ (17,901,522) $ 63,375,993
Core Equity
Fund........... 1,672,588,459 977,802,640 (112,108,555) 865,694,085
Diversified
Value Fund..... 413,430,251 95,136,747 (26,201,264) 68,935,483
Large Cap Blend
Fund........... 212,612,167 90,760,082 (16,827,573) 73,932,509
Secular Growth
Fund........... 759,505,887 245,793,814 (62,511,200) 183,282,614
Small Cap Growth
Fund........... 163,954,286 28,938,337 (5,912,698) 23,025,639
Small Company
Value Fund..... 65,642,705 9,403,567 (5,350,983) 4,052,584
Social
Principles
Fund........... 96,940,509 25,682,150 (14,441,027) 11,241,123
Strategic Growth
Fund........... 713,243,858 234,038,549 (16,417,438) 217,621,111
Strategic Value
Fund........... 734,205,539 108,984,414 (82,765,547) 26,218,867
</TABLE>

As of June 30, 2000, Small Company Value Fund had capital loss carryovers for
federal income tax purposes of $3,027,415 and $11,130,509 which expire in 2007
and 2008, respectively.

Capital losses incurred after October 31 within a Fund's fiscal year are deemed
to arise on the first business day of the Fund's following fiscal year. The
Small Company Value Fund has incurred and will elect to defer post October
losses of $3,438,021.

10. EXPENSE REDUCTIONS

The Funds have entered into expense offset arrangements with ESC and their cus-
todian whereby credits realized as a result of uninvested cash balances were
used to reduce a portion of each Fund's related expenses. The assets deposited
with ESC and the custodian under these expense offset arrangements could have
been invested in income-producing assets. The amount of expense reductions re-
ceived by each Fund and the impact of the total expense reductions on each
Fund's annualized expense ratio represented as a percentage of its average net
assets were as follows:

<TABLE>
<CAPTION>
Expense Offset % of Average
Arrangements Net Assets
---------------------------
<S> <C> <C>
Balanced Fund....................... $ 33,180 0.01%
Core Equity Fund.................... 102,941 0.00%
Diversified Value Fund.............. 27,703 0.01%
Large Cap Blend Fund................ 14,115 0.00%
Secular Growth Fund................. 45,854 0.01%
Small Cap Growth Fund............... 12,177 0.01%
Small Company Value Fund............ 5,882 0.01%
Social Principles Fund.............. 3,926 0.00%
Strategic Growth Fund............... 34,838 0.01%
Strategic Value Fund................ 31,280 0.00%
</TABLE>

11. DEFERRED TRUSTEES' FEES

Each Independent Trustee of each Fund may defer any or all compensation related
to performance of their duties as Trustees. The Trustees' deferred balances are
allocated to deferral accounts, which are included in the accrued expenses for
the Fund. The investment performance of the deferral accounts are based on the
investment performance of certain Evergreen Funds. Any gains earned or losses
incurred in the deferral

109
<PAGE>

Combined Notes to Financial Statements (continued)

accounts are reported in the Fund's Trustees' fees and expenses. At the elec-
tion of the Trustees, the deferral account will be paid either in one lump sum
or in quarterly installments for up to ten years.

12. FINANCING AGREEMENTS

Certain Evergreen Funds, State Street Bank and Trust Company ("State Street")
and The Bank of New York ("BONY") entered into an amended financing agreement
on December 22, 1998. Under this agreement, State Street and BONY provided an
unsecured credit facility in the aggregate amount of $150 million ($125 million
committed and $25 million uncommitted). The credit facility was allocated, un-
der the terms of the financing agreement between State Street and BONY. The
credit facility was accessed by the Funds for temporary or emergency purposes
only and was subject to each Fund's borrowing restrictions. Borrowings under
this facility bore interest at 0.50% per annum above the Federal Funds rate. A
commitment fee of 0.065% per annum was incurred on the unused portion of the
committed facility, which was allocated to all funds. State Street served as
administrative agent and was entitled to a fee of $20,000 per annum which was
allocated to all of the funds. This agreement was terminated on July 27, 1999.

On July 27, 1999, certain Evergreen Funds and a group of banks (the "Lenders")
entered into a credit agreement. Under this agreement, 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 for gen-
eral working capital purposes as permitted by each Fund's borrowing restric-
tions. Borrowings under this facility bear 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 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 the funds.

During the year ended June 30, 2000, the Funds had no significant borrowings
under these agreements.

13. CONCENTRATION OF RISK

The Funds may invest a substantial portion of assets in an industry or sector
and, therefore, may be more affected by changes in that industry or sector than
would be a comparable mutual fund that is not heavily weighted in any industry
or sector.

14. SUBSEQUENT EVENTS

Effective the close of business on July 21, 2000, the net assets and liabili-
ties of Diversified Value Fund and Large Cap Blend Fund were acquired by the
Evergreen Stock Selector Fund ("Stock Selector Fund"), an open-end management
investment company registered under the 1940 Act in an exchange of shares. The
net assets of Diversified Value Fund were acquired through a tax-free exchange
for 72,632 Class IS shares and 26,089,242 Class Y shares of Stock Selector
Fund. The net assets of Large Cap Blend Fund were acquired through a tax-free
exchange for 9,572 Class IS shares and 15,893,799 Class Y shares of Stock Se-
lector Fund. The acquired net assets of Diversified Value Fund and Large Cap
Blend Fund consisted primarily of portfolio securities with unrealized appreci-
ation of $75,928,130 and $83,356,329, respectively. Aggregate net assets of Di-
versified Value Fund, Large Cap Blend Fund and Stock Selector Fund immediately
before the acquisition were $467,140,556, $283,970,108 and $424,621,261, re-
spectively. The aggregate net assets of Stock Selector Fund after the acquisi-
tion were $1,175,731,925.

Effective the close of business on July 21, 2000, the net assets and liabili-
ties of Small Company Value Fund were acquired by the Evergreen Small Cap Value
Fund ("Small Cap Value Fund"), an open-end management investment company regis-
tered under the 1940 Act in an exchange of shares. The net assets of Small Com-
pany Value Fund were acquired through a tax-free exchange for 86,740 Class IS
shares and 4,303,541 Class Y shares

110
<PAGE>

Combined Notes to Financial Statements (continued)

of Small Cap Value Fund. The acquired net assets consisted primarily of portfo-
lio securities with unrealized appreciation of $4,468,589. Aggregate net assets
of Small Company Value Fund and Small Cap Value Fund immediately before the ac-
quisition were $68,433,213 and $159,591,611, respectively. The aggregate net
assets of Small Cap Value Fund after the acquisition were $228,024,824.

Effective the close of business on July 21, 2000, the net assets and liabili-
ties of Social Principles Fund were acquired by the Evergreen Select Special
Equity Fund ("Select Special Equity Fund"), an open-end management investment
company registered under the 1940 Act in an exchange of shares. The net assets
of Social Principles Fund were acquired through a tax-free exchange for
6,028,088 Class I shares and 3,363 Class IS shares of Select Special Equity
Fund. The acquired net assets consisted primarily of portfolio securities with
unrealized appreciation of $16,255,619. Aggregate net assets of Social Princi-
ples Fund and Select Special Equity Fund immediately before the acquisition
were $87,942,119 and $313,292,943, respectively. The aggregate net assets of
Select Special Equity Fund after the acquisition were $401,235,062.

111
<PAGE>

Independent Auditors' Report

Board of Trustees and Shareholders
Evergreen Select Equity Trust

We have audited the accompanying statements of assets and liabilities, includ-
ing the schedules of investments of the Evergreen Select Balanced Fund, Ever-
green Select Core Equity Fund, Evergreen Select Diversified Value Fund, Ever-
green Select Large Cap Blend Fund, Evergreen Select Secular Growth Fund, Ever-
green Select Small Cap Growth Fund, Evergreen Select Small Company Value Fund,
Evergreen Select Social Principles Fund, Evergreen Select Strategic Growth
Fund, and Evergreen Select Strategic Value Fund, portfolios of Evergreen Select
Equity Trust, as of June 30, 2000, and the related statements of operations for
the year then ended, statements of changes in net assets for the years or peri-
ods in the two-year period then ended, and the financial highlights for the
years or periods in the five-year period then ended. These financial statements
and financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and fi-
nancial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally ac-
cepted in the United States of America. Those standards require that we plan
and perform our audit to obtain reasonable assurance about whether the finan-
cial statements and financial highlights are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation
of securities owned as of June 30, 2000 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
financial statement presentation. We believe that our audits provide a reason-
able 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 Select Balanced Fund, Evergreen Select Core Equity Fund, Evergreen Select
Diversified Value Fund, Evergreen Select Large Cap Blend Fund, Evergreen Select
Secular Growth Fund, Evergreen Select Small Cap Growth Fund, Evergreen Select
Small Company Value Fund, Evergreen Select Social Principles Fund, Evergreen
Select Strategic Growth Fund, and Evergreen Select Strategic Value Fund as of
June 30, 2000, the results of their operations, changes in their net assets and
financial highlights for each of the years or periods described above in con-
formity with accounting principles generally accepted in the United States of
America.

/s/ KPMG LLP

Boston, Massachusetts
August 11, 2000

112
<PAGE>

Additional Information (Unaudited)

FEDERAL TAX STATUS OF DISTRIBUTIONS

Pursuant to section 852 of the Internal Revenue Code, the Funds have designated
the following amounts as long-term capital gain distributions for the fiscal
year ended June 30, 2000 and for the period July 1, 2000 through July 21, 2000.

<TABLE>
<CAPTION>
FYE 6/30/2000 7/1/2000-7/21/2000
Aggregate Per share Aggregate Per share
---------------------- --------------------
<S> <C> <C> <C> <C>
Balanced Fund..... $ 24,415,562 $0.532
Core Equity Fund.. 190,656,702 9.096
Diversified Value
Fund............. 20,241,669 1.082 36,525,928 2.224
Large Cap Blend
Fund............. 48,284,391 6.479 30,264,351 4.805
Secular Growth
Fund............. 21,131,667 3.253
Social Principles
Fund............. 23,160,125 8.104 23,930,181 9.631
Strategic Growth
Fund............. 89,911,865 7.347
Strategic Value
Fund............. 9,358,944 4.190
</TABLE>

For corporate shareholders, the following percentages of ordinary income divi-
dends paid during the fiscal year ended June 30, 2000 qualified for the divi-
dends received deductions.

<TABLE>
<S> <C>
Balanced Fund............................................. 4.83%
Core Equity Fund.......................................... 100.00
Secular Growth Fund....................................... 5.85
Strategic Growth Fund..................................... 2.64
Strategic Value Fund...................................... 100.00
</TABLE>

With respect to the Funds that were acquired on July 21, 2000, the following
percentages of ordinary income dividends paid during the period July 1, 1999
through July 21, 2000 qualified for the dividends received deduction:

<TABLE>
<S> <C>
Diversified Value Fund.................................... 45.18%
Large Cap Blend Fund...................................... 58.53
Small Company Value Fund.................................. 100.00
Social Principles Fund.................................... 13.17
</TABLE>

SPECIAL MEETING OF SHAREHOLDERS

On July 14, 2000, a Special Meeting of Shareholders for Diversified Value Fund,
Large Cap Blend Fund, Small Company Value Fund and Social Principles Fund was
held to consider a number of proposals. On April 28, 2000, the record date for
the meeting, the net assets eligible to be voted and the net assets voted were
as follows:

<TABLE>
<CAPTION>
Net assets
eligible to Net assets
be voted voted
-------------------------
<S> <C> <C>
Diversified Value Fund................ $487,790,979 $320,539,598
Large Cap Blend Fund.................. 294,997,481 294,298,268
Small Company Value Fund.............. 69,391,208 62,782,783
Social Principles Fund................ 89,299,022 88,410,577
</TABLE>

Diversified Value Fund

1. To approve an Agreement and Plan or Reorganization whereby Evergreen Stock
Selector Fund, a series of Evergreen Equity Trust, will (i) acquire all of
the assets of Select Diversified Value Fund in exchange for shares of
Evergreen Stock Selector Fund; and (ii) assume the identified liabilities of
Select Diversified Value Fund.

<TABLE>
<CAPTION>
Percentage of
record date Percentage of
Net assets net assets net assets
voted outstanding voted
<S> <C> <C> <C>
------------------------------------------
Affirmative........... $314,630,713 64.501% 98.157%
Against............... 1,803,665 0.370 0.562
Abstain............... 4,105,220 0.841 1.281
------------ ------ -------
Total................ $320,539,598 65.712% 100.000%
============ ====== =======
</TABLE>

113
<PAGE>

Additional Information (Unaudited)(continued)

2. To consider and vote upon such other matters as may properly come before
said meeting or any adjournments thereof.

<TABLE>
<CAPTION>
Percentage of
record date Percentage of
Net assets net assets net assets
voted outstanding voted
----------------------------------------
<S> <C> <C> <C>
Affirmative........... $287,188,038 58.875% 89.595%
Against............... 936,822 0.192 0.292
Abstain............... 32,414,738 6.645 10.113
------------ ------ -------
Total................ $320,539,598 65.712% 100.000%
============ ====== =======
</TABLE>

Large Cap Blend Fund

1. To approve an Agreement and Plan or Reorganization whereby Evergreen Stock
Selector Fund, a series of Evergreen Equity Trust, will (i) acquire all of
the assets of Select Large Cap Blend Fund in exchange for shares of
Evergreen Stock Selector Fund; and (ii) assume the identified liabilities of
Select Large Cap Blend Fund.

<TABLE>
<CAPTION>
Percentage of
record date Percentage of
Net assets net assets net assets
voted outstanding voted
----------------------------------------
<S> <C> <C> <C>
Affirmative........... $294,298,268 99.763% 100.000%
Against............... 0 0.000 0.000
Abstain............... 0 0.000 0.000
------------ ------ -------
Total................ $294,298,268 99.763% 100.000%
============ ====== =======
</TABLE>

2. To consider and vote upon such other matters as may properly come before
said meeting or any adjournments thereof.

<TABLE>
<CAPTION>
Percentage of
record date Percentage of
Net assets net assets net assets
voted outstanding voted
----------------------------------------
<S> <C> <C> <C>
Affirmative........... $ 2,000,836 0.678% 0.680%
Against............... 292,055,062 99.003 99.238
Abstain............... 242,370 0.082 0.082
------------ ------ -------
Total................ $294,298,268 99.763% 100.000%
============ ====== =======
</TABLE>

Small Company Value Fund

1. To approve an Agreement and Plan or Reorganization whereby Evergreen Small
Cap Value Fund, a series of Evergreen Equity Trust, will (i) acquire all of
the assets of Select Small Company Value Fund in exchange for shares of
Evergreen Small Cap Value Fund; and (ii) assume the identified liabilities
of Select Small Company Value Fund.

<TABLE>
<CAPTION>
Percentage of
record date Percentage of
Net assets net assets net assets
voted outstanding voted
---------------------------------------
<S> <C> <C> <C>
Affirmative............ $62,522,542 90.102% 99.585%
Against................ 129,626 0.186 0.207
Abstain................ 130,615 0.189 0.208
----------- ------ -------
Total................. $62,782,783 90.477% 100.000%
=========== ====== =======
</TABLE>

114
<PAGE>

Additional Information (Unaudited)(continued)

2. To consider and vote upon such other matters as may properly come before
said meeting or any adjournments thereof.

<TABLE>
<CAPTION>
Percentage of
record date Percentage of
Net assets net assets net assets
voted outstanding voted
<S> <C> <C> <C>
---------------------------------
Affirmative............ $43,942,858 63.326% 69.992%
Against................ 18,709,310 26.962 29.800
Abstain................ 130,615 0.189 0.208
----------- ------ -------
Total................. $62,782,783 90.477% 100.000%
=========== ====== =======
</TABLE>

Social Principles Fund

1. To approve an Agreement and Plan or Reorganization whereby Evergreen Select
Special Equity Fund, a series of Evergreen Equity Trust, will (i) acquire
all of the assets of Select Social Principles Fund in exchange for shares of
Evergreen Select Special Equity Fund; and (ii) assume the identified
liabilities of Select Social Principles Fund.

<TABLE>
<CAPTION>
Percentage of
record date Percentage of
Net assets net assets net assets
voted outstanding voted
<S> <C> <C> <C>
---------------------------------
Affirmative............ $88,410,577 99.005% 100.000%
Against................ 0 0.000 0.000
Abstain................ 0 0.000 0.000
----------- ------ -------
Total................. $88,410,577 99.005% 100.000%
=========== ====== =======
</TABLE>

2. To consider and vote upon such other matters as may properly come before
said meeting or any adjournments thereof.

<TABLE>
<CAPTION>
Percentage of
record date Percentage of
Net assets net assets net assets
voted outstanding voted
<S> <C> <C> <C>
---------------------------------
Affirmative............ $ 0 0.000% 0.000%
Against................ 88,292,187 98.873 99.866
Abstain................ 118,390 0.132 0.134
----------- ------ -------
Total................. $88,410,577 99.005% 100.000%
=========== ====== =======
</TABLE>

115
<PAGE>

Evergreen Select Funds*

Money Market Growth and Income/
Money Market Fund Balanced
Treasury Money Market Fund Equity Income Fund
100% Treasury Money Market Fund Balanced Fund
Municipal Money Market Fund
U.S. Government Money Market Fund Growth
Special Equity Fund
Municipal Fixed Small Cap Growth Fund
Income Secular Growth Fund
Intermediate Term Municipal Bond Fund Strategic Growth Fund
Core Equity Fund
Taxable Fixed Equity Index Fund
Income Strategic Value Fund
International Bond Fund
Total Return Bond Fund
Income Plus Fund
Core Bond Fund
Fixed Income Fund
Adjustable Rate Fund
Limited Duration Fund

*Minimum investment in an Evergreen
Select Fund is $1,000,000.

58842 542780 8/2000

[LOGO OF EVERGREEN]

200 Berkeley
Street Boston,
MA 02116

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PRSRT STD
U.S. POSTAGE
PAID
HUDSON, MA
PERMIT NO. 19
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