<PAGE>
Semiannual Report
as of March 31, 2000
EVERGREEN DOMESTIC GROWTH FUNDS
[LOGO OF EVERGREEN FUNDS ]
[LOGO OF MUTUAL FUND SERVICE AWARD]
<PAGE>
Table of Contents
Letter to Shareholders .................................................... 1
Evergreen Aggressive Growth Fund
Fund at a Glance ......................................................... 2
Portfolio Manager Interview .............................................. 3
Evergreen Capital Growth Fund
Fund at a Glance ......................................................... 5
Portfolio Manager Interview .............................................. 6
Evergreen Fund
Fund at a Glance ......................................................... 8
Portfolio Manager Interview .............................................. 9
Evergreen Growth Fund
Fund at a Glance ......................................................... 11
Portfolio Manager Interview .............................................. 12
Evergreen Masters Fund
Fund at a Glance ......................................................... 14
Portfolio Manager Interview .............................................. 15
Evergreen Omega Fund
Fund at a Glance ......................................................... 22
Portfolio Manager Interview .............................................. 23
Evergreen Small Company Growth Fund
Fund at a Glance ......................................................... 26
Portfolio Manager Interview .............................................. 27
Evergreen Stock Selector Fund
Fund at a Glance ......................................................... 30
Portfolio Manager Interview .............................................. 31
Evergreen Strategic Growth Fund
Fund at a Glance ......................................................... 33
Portfolio Manager Interview .............................................. 34
Evergreen Tax Strategic Equity Fund
Fund at a Glance ......................................................... 36
Portfolio Manager Interview .............................................. 37
Financial Highlights
Evergreen Aggressive Growth Fund ........................................ 40
Evergreen Capital Growth Fund ........................................... 42
Evergreen Fund .......................................................... 44
Evergreen Growth Fund ................................................... 46
Evergreen Masters Fund .................................................. 48
Evergreen Omega Fund .................................................... 50
Evergreen Small Company Growth Fund ..................................... 52
Evergreen Stock Selector Fund ........................................... 54
Evergreen Strategic Growth Fund ......................................... 56
Evergreen Tax Strategic Equity Fund ..................................... 58
Schedule of Investments
Evergreen Aggressive Growth Fund ........................................ 60
Evergreen Capital Growth Fund ........................................... 62
Evergreen Fund .......................................................... 63
Evergreen Growth Fund ................................................... 64
Evergreen Masters Fund .................................................. 69
Evergreen Omega Fund .................................................... 77
Evergreen Small Company Growth Fund ..................................... 79
Evergreen Stock Selector Fund ........................................... 82
Evergreen Strategic Growth Fund ......................................... 85
Evergreen Tax Strategic Equity Fund ..................................... 87
Statements of Assets and Liabilities ...................................... 90
Statements of Operations .................................................. 92
Statements of Changes in Net Assets ....................................... 94
Combined Notes to Financial
Statements ................................................................ 98
--------------------------------------------------------------------------------
Evergreen Funds
--------------------------------------------------------------------------------
Evergreen Funds is one of the nation's fastest growing investment companies with
over $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 semiannual report must be preceded or accompanied by a prospectus of an
Evergreen fund contained herein. The prospectus contains more complete
information, including fees, charges and other ongoing expenses, and should be
read carefully before investing or sending money.
Mutual Funds: ARE NOT FDIC INSURED May lose value . Not bank guaranteed
Evergreen Distributor, Inc.
Evergreen FundsSM is a service mark of Evergreen Investment Services, Inc.
<PAGE>
Letter to Shareholders
----------------------
May 2000
[PHOTO]
William M. Ennis
President and CEO
Dear Evergreen Shareholders,
We are pleased to provide the Evergreen Domestic Growth Funds semiannual report,
which covers the six-month period ended March 31, 2000.
U.S. Markets Experience Volatility
During the past six months, U.S. equity markets experienced significant ups and
downs. Technology, communications and biotechnology stocks reigned supreme
during the first half of the period only to undergo a volatile environment
during the latter half of the period. While these sectors experienced sharp
corrections late in the period, they remain favored sectors.
The Federal Reserve Board increased interest rates three times during the six-
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 Fed'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 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/ Bill Ennis
William M. Ennis
President and CEO
Evergreen Investment Company, Inc
1
<PAGE>
EVERGREEN
Aggressive Growth Fund
Fund at a Glance as of March 31, 2000
"Technology provided the tools for these productivity gains,and technology
stocks were the dominant performers in the market."
Portfolio
Management
--------------
[PHOTO]
Maureen E.Cullinane, CFA
Tenure: April 1999
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE1
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 3/31/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
1 Source: 2000 Morningstar, Inc.
2 Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
Historical performance shown for Classes B, C and Y prior to their inception is
based on the performance of Class A, the original class offered. These
historical returns for Classes B, C, and Y have not been adjusted to reflect the
effect of each Class' 12b-1 fees. These fees are 0.25% for Class A and 1.00% for
Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had been
reflected, returns for Classes B and C would have been lower while returns for
Class Y would have been higher.
All data is as of 3/31/2000 and subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS2
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Portfolio Inception Date: 4/15/1983 Class A Class B Class C Class Y
Class Inception Date 4/15/1983 7/7/1995 8/3/1995 7/11/1995
<S> <C> <C> <C> <C>
Average Annual Returns*
6 months with sales charge 58.05% 60.35% 63.30% n/a
6 months w/o sales charge 65.93% 65.35% 65.30% 66.23%
1 year with sales charge 56.49% 58.14% 61.08% n/a
1 year w/o sales charge 64.28% 63.14% 63.08% 64.85%
3 years 37.39% 38.19% 38.65% 40.17%
5 years 29.03% 29.31% 29.39% 30.66%
10 years 22.96% 23.16% 23.13% 23.73%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
6-month capital gain distributions
per share $3.27 $3.27 $3.27 $3.27
</TABLE>
* Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
Evergreen
Aggressive Russell 1000 S&P 400 Midcap Consumer Price
Growth A Growth Total Return Index - US
3/31/90 9,525 10,000 10,000 10,000
3/31/91 11,491 12,216 11,297 10,490
3/31/92 16,186 13,899 13,721 10,824
3/31/93 19,667 15,224 15,946 11,158
3/31/94 21,691 15,102 16,917 11,437
3/31/95 21,037 17,762 18,325 11,764
3/31/96 29,781 23,442 23,551 12,098
3/31/97 29,007 27,539 26,044 12,432
3/31/98 37,894 41,159 38,758 12,603
3/31/99 48,064 52,728 38,921 12,821
3/31/00 78,973 70,714 53,718 13,219
Comparison of a $10,000 investment in Evergreen Aggressive Growth Fund Class A
shares2, versus a similar investment in the Russell 1000 Growth Index (Russell
1000 Growth), the Standard & Poor's 400 Mid-Cap Index (S&P 400), and the
Consumer Price Index (CPI).
The Russell 1000 Growth and the S&P 400 are unmanaged market indices which do
not include transaction costs associated with buying and selling securities or
any mutual fund expenses. The CPI is a commonly used measure of inflation and
does not represent an investment return. It is not possible to invest directly
in an index.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
Smaller capitalization stock investing may offer the potential for greater long
term results, however, it is also generally associated with greater price
volatility due to the higher risk of failure.
U.S. government guarantees apply only to the underlying securities of the Fund's
portfolio and not to the Fund's shares.
2
<PAGE>
EVERGREEN
Aggressive Growth Fund
Portfolio Manager Interview
How did the Fund perform?
The Fund had excellent performance. For the six-month period ended March 31,
2000, Evergreen Aggressive Growth Fund Class A shares had a total return of
65.93%. During the same period, the Russell 1000 Growth Index returned 34.06%
and the S&P 400 Mid-Cap Index returned 32.06%. The median return of funds in the
multi-cap growth category was 52.07%, according to Lipper Inc., an independent
monitor of mutual fund performance. Fund returns are before deduction of any
applicable sales charges.
Portfolio
Characteristics
---------------
Total Net Assets $447,048,569
Number of Holdings 72
Beta 1.01
What was the environment like for the six-month period?
The period offered an excellent environment. The growth style of investing
outperformed the value style, and small and mid-cap stocks started to move ahead
of large-cap stocks. Reversing the trend of 1997 and 1998, active managers or
stock-pickers tended to outperform market indices. The U.S. economy grew at a
very brisk pace, but without evidence of inflation. While interest rates rose
during the period, productivity gains helped corporations enjoy healthy earnings
growth.
Technology provided the tools for these productivity gains, and technology
stocks were the dominant performers in the market. Stocks of internet
infrastructure companies, semi-conductor manufacturers and software developers
all did very well. However, while these new economy stocks surged, many old
economy stocks posted anemic results. Stocks in industries such as consumer
staples, capital goods and commodity-related companies lagged the markets.
Consumer goods companies such as Coca-Cola and Gillette, which traditionally
have depended on their ability to raise prices, found they had little pricing
power. Their stock prices suffered as their earnings growth rates lagged those
of technology companies, which thrived in a deflationary environment
characterized by their product innovation and volume growth rather than price
increases.
What factors contributed to the performance of the Aggressive Growth Fund?
We focused on the long-term investment themes that have guided us: the "Aging of
America" and the "Growth in Productivity." We maintained a high weighting in
technology at about 60% of net assets.
We emphasized companies with accelerating earnings growth. To this core, we
added companies with records of consistent earnings growth. While we invest in
companies of all sizes, we had relatively heavy emphasis on fast-growing mid-cap
and small-cap companies.
Most of the technology investments are tied into the long-term "Growth in
Productivity" theme we see in American industry. Major positions in the
portfolio included leading large-cap companies such as Cisco Systems in
networking, EMC in data storage, and Intel in semi-conductors.
Mid-cap and small-cap technology investments included: Micron Technology, which
produces DRAM semiconductors for the memory systems of computers and network
servers; Documentum, which provides document management software for large
corporations; Finisar, which provides fiber-optic systems for data storage
networks; RF Micro Devices, which produces switches and equipment for the
telecommunications industry; and Maxtor, which produces hard-disk drive systems
for personal computer systems.
3
<PAGE>
EVERGREEN
Aggressive Growth Fund
Portfolio Manager Interview
Top 5 Industries
----------------
(as a percentage of 3/31/2000 net assets)
Semiconductor Equipment & Products 14.7%
Software 11.8%
Communications Equipment 10.9%
Pharmaceuticals 7.4%
Electronic Equipment & Instruments 7.4%
What were your key strategies outside technology?
Another long-term theme we have emphasized is the "Graying of America." As the
large baby-boomer population ages, American industry will be seeing new demands
for goods and services for an older population.
The impact on the health care industry will be significant. While many large-
cap pharmaceutical companies were not in favor during the past six months, we
did find some opportunities for the Fund among smaller companies.
Two good examples are Ilex Oncology, which is developing a number of potential
drugs to be used in cancer therapy; and PE Biosystems Group, which produces
gene-splicing equipment that is important in the work of biotechnology
companies.
We also have increased our weighting in oil service stocks; we anticipate an
increased level of exploration and drilling activity in the wake of the near
doubling of energy prices over the past year.
Top 10 Holdings
---------------
(as a percentage of 3/31/2000 net assets)
Cisco Systems, Inc. 4.5%
Pharmacia & Upjohn, Inc. 3.3%
Intel Corp. 3.2%
EMC Corp. 3.2%
American Home Products Corp. 2.8%
Micron Technology, Inc. 2.5%
Sandisk Corp. 2.5%
Best Buy Co., Inc. 2.3%
Microsoft Corp. 2.3%
Veritas Software Corp. 2.2%
What is your outlook?
We think economic growth will begin to slow during the second half of 2000 as a
result of the Federal Reserve Board's continued tightening of the money supply
through increases in short-term rates. With the exception of energy prices, we
think inflation should remain muted. Historically, bull markets typically have
been ended by recessions, and we see no signs of a recession. The year 2000 is
a presidential election year, which typically is good for the stock market.
Overall, we believe the economy should be healthy and the stock market should
continue to perform positively, although probably not as well as it did in the
past six months. Technology stocks that have risen at extraordinarily fast
paces may lose some of their gains, and price corrections may be particularly
evident in the technology-heavy NASDAQ Composite Index. In an environment in
which day traders seem to have been buying indiscriminately, some stocks may
have come too far, too fast. However, we may see benefit in the recent, sharp
price fluctuations and volatility in the market. Complacency has declined and
investors are being more careful about what they buy. Market volatility may
provide the opportunity to invest in consistent growth companies at more
reasonable prices.
4
<PAGE>
EVERGREEN
Capital Growth Fund
Fund at a Glance as of March 31, 2000
Portfolio Management
--------------------
[PHOTO] [PHOTO]
John Davenport E.Craig Dauer
Tenure: December 1992 Tenure: June 1999
[PHOTO] [PHOTO]
John Jordan III Steve Certo
Tenure: June 1999 Tenure: June 1997
[PHOTO]
Richard Skeppstrom
Tenure: December 1992
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 3/31/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
/1/ Source: 2000 Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
Historical performance shown for Classes B and Y prior to their inception is
based on the performance of Class A, one of the original classes offered along
with class C. These historical returns for Class A and Y have not been adjusted
to reflect the effect of each Class' 12b-1 fees. These fees are 0.25% for Class
A and 1.00% for Classes B and C. Class Y does not pay a 12b-1 fee. If these fees
had been reflected, returns for Classes A and Y would have been higher.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Portfolio Inception Date: 4/29/1992 Class A Class B Class C Class Y
Class Inception Date 4/29/1992 10/25/1999 4/29/1992 11/19/1997
<S> <C> <C> <C> <C>
Average Annual Returns*
6 months with sales charge 0.00% -0.22% 2.66% n/a
6 months w/o sales charge 5.01% 4.76% 4.66% 5.19%
1 year with sales charge 0.47% 0.23% 2.75% n/a
1 year w/o sales charge 5.48% 5.23% 4.75% 5.84%
3 years 17.71% 18.83% 18.69% 19.87%
5 years 20.14% 21.06% 20.38% 21.45%
Since Portfolio Inception 14.34% 15.01% 14.21% 15.13%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
6-month capital gain distributions
per share $0.51 $0.51 $0.51 $0.51
</TABLE>
* Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
S&P 500 Russell 1000 Consumer Price
Class A Composite Growth Index - US
4/29/92 9,525 10,000 10,000 10,000
3/31/93 10,259 11,194 11,833 10,294
3/31/94 9,992 11,359 12,300 10,552
3/31/95 11,010 13,127 13,680 10,853
3/31/96 13,937 17,341 18,261 11,161
3/31/97 16,884 20,779 21,562 11,470
3/31/98 24,913 30,753 31,735 11,627
3/31/99 27,406 36,435 33,337 11,828
3/31/00 28,900 42,969 35,450 12,195
Comparison of a $10,000 investment in Evergreen Capital Growth Fund Class A
shares/2/, versus a similar investment in the Russell 1000 Value Index (Russell
1000 Value), the Standard & Poor's 500 Index (S&P 500) and the Consumer Price
Index (CPI).
The Russell 1000 Value and the S&P 500 are unmanaged market indices which do not
include transaction costs associated with buying and selling securities or any
mutual fund expenses. The CPI is a commonly used measure of inflation and does
not represent an investment return. It is not possible to invest directly in an
index.
Returns reflect expense limits previously in effect, without which returns would
have been lower.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
Foreign investments may contain more risk due to the inherent risks associated
with changing political climates, foreign market instability and foreign
currency fluctuations.
All data is as of 3/31/2000 and subject to change.
5
<PAGE>
EVERGREEN
Capital Growth Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended March 31, 2000, Evergreen Capital Growth Fund
Class A shares had a total return of 5.01%. During the same period, the Russell
1000 Value and the S&P 500 returned 5.94% and 17.51%, respectively. Fund
returns are before deduction of any applicable sales charges.
Portfolio Characteristics
-------------------------
Total Net Assets $436,974,401
Number of Holdings 34
Beta 0.97
What was the investment environment like for large-cap investing during the
period?
Many of the trends from last year continued through the first quarter of 2000,
as technology stocks were the best performers and volatility increased even
further.
Now investors have become obsessed with the "old economy" versus the "new
economy". This categorization ignores the fact that much of the "new economy's"
reason for being is to provide benefits to "old economy" businesses.
We will continue striving to own stocks in companies that we believe have
favorable outlooks, at prices that we believe are attractive versus their
intrinsic value. It sounds like an old fashioned approach, but we believe it
will prove timeless.
Top 5 Industries
----------------
(as a percentage of 3/31/2000 net assets)
Commercial Services & Supplies 11.2%
Banks 10.5%
Pharmaceuticals 9.0%
Industrial Conglomerates 9.0%
Diversified Financials 7.5%
What factors contributed to performance?
Our under-weighting in the leading tech stocks continues to hold back our
performance relative to the indices and other managers. We currently own four
of the major technology names: Computer Associates Intl., IBM, Intel, and MCI
WorldCom, which account for about 15% of the Fund's stock portfolio. The
technology and telecom sectors make up about 41% of the S&P 500.
Importantly, we continue to be satisfied with the recent results of our
holdings, although their stock prices are not benefiting from the euphoria
lifting technology shares. We estimate our current holdings' average earnings-
per-share growth rate will approximate 17% in 2000, similar to recent quarters.
Top 10 Holdings
---------------
(as a percentage of 3/31/2000 net assets)
Tyco International, Ltd. 5.8%
Intel Corp. 4.5%
First Data Corp. 4.5%
SYSCO Corp. 4.5%
Federal National Mortgage Assn. 4.4%
Wells Fargo Co. 4.2%
Tenet Healthcare Corp. 4.0%
Automatic Data Processing, Inc. 4.0%
Sherwin Williams Co. 3.8%
Philip Morris Cos., Inc. 3.6%
6
<PAGE>
EVERGREEN
Capital Growth Fund
Portfolio Manager Interview
What is your outlook?
The stock market's intense volatility as we move into the second quarter may be
signaling that a major transition is at hand. As the Federal Reserve continues
raising rates to quell an overheating economy, valuations are at extreme levels
and trading volatility becomes alarming. We are glad to be moving through what
may be one of the most volatile years in history with our fundamental
disciplines intact.
7
<PAGE>
EVERGREEN
Evergreen Fund
Fund at a Glance as of March 31, 2000
"We are more optimistic about the marketplace as a whole when we take a longer-
term view of the secular trends."
Portfolio
Management
----------
[PHOTO] [PHOTO]
Jean C.Ledford, Richard S.Welsh
CFA Tenure:August 1999
Tenure: August 1999
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 3/31/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
/1/ Source: 2000 Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
Historical performance shown for Classes A, B and C prior to their inception is
based on the performance of Class Y, the original class offered. These
historical returns for Classes A, B, and C have not been adjusted to reflect the
effect of each Class' 12b-1 fees. These fees are 0.25% for Class A and 1.00%
for Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had been
reflected, returns would have been lower.
All data is as of 3/31/2000 and subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Portfolio Inception Date: 10/15/1971 Class A Class B Class C Class Y
Class Inception Date 1/3/1995 1/3/1995 1/3/1995 10/15/1971
<S> <C> <C> <C> <C>
Average Annual Returns*
6 months with sales charge 13.21% 13.36% 16.38% n/a
6 months w/o sales charge 18.86% 18.36% 18.38% 18.97%
1 year with sales charge 13.84% 13.61% 16.68% n/a
1 year w/o sales charge 19.51% 18.61% 18.68% 19.80%
3 years 16.31% 16.68% 17.43% 18.60%
5 years 17.68% 17.82% 18.03% 19.21%
10 years 14.42% 14.57% 14.57% 15.16%
Since Portfolio Inception 16.17% 16.23% 16.23% 16.44%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
6-month capital gain distributions
per share $ 1.08 $ 1.08 $ 1.08 $ 1.08
</TABLE>
* Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
S&P 500
Evergreen Russell Composite Consumer Price
Fund A 2000 Total Return Index - US
3/31/90 9,525 10,000 10,000 10,000
3/31/91 10,682 10,679 11,441 10,490
3/31/92 12,763 12,945 12,705 10,824
3/31/93 13,760 14,868 14,639 11,158
3/31/94 14,143 16,505 14,855 11,437
3/31/95 16,226 17,413 17,168 11,764
3/31/96 20,499 22,453 22,679 12,098
3/31/97 23,274 23,600 27,175 12,432
3/31/98 33,367 33,515 40,218 12,603
3/31/99 32,169 28,067 47,648 12,821
3/31/00 38,452 38,533 56,194 13,219
Comparison of a $10,000 investment in Evergreen Fund Class A shares/2/, versus a
similar investment in the Standard & Poor's 500 Index (S&P 500), the Russell
2000 Index and the Consumer Price Index (CPI).
The S&P 500 and the Russell 2000 are unmanaged market indexes 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.
Returns reflect expense limits previously in effect, without which returns would
have been lower.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
Smaller capitalization stock investing may offer the potential for greater long
term results, however, it is also generally associated with greater price
volatility due to the higher risk of failure.
8
<PAGE>
EVERGREEN
Evergreen Fund
Portfolio Manager Interview
How did the Fund perform?
The Fund performed well. For the six-month period ended March 31, 2000,
Evergreen Fund Class A shares had a total return of 18.86%. During the same
period, the S&P 500 and the Russell 2000 returned 17.51% and 26.83%,
respectively. The median return of large-cap core funds was 20.29%, according to
Lipper Inc., an independent monitor of mutual fund performance. Fund returns are
before deduction of any applicable sales charges.
Portfolio
Characteristics
---------------
Total Net Assets $2,057,891,419
Number of Holdings 120
Beta 0.89
What factors contributed to the performance?
The Fund was in a transition during the period. During the beginning of the
period the portfolio had a high weighting in financial stocks and a relatively
low weighting in technology. We built up the weighting in technology consistent
with the technology sector's weighting in the S&P 500, about 34% of assets. The
new emphasis in the Fund helped during the final quarter of 1999 and the first
two months of 2000 as our investments in technology rallied. Even when
technology slumped and financials started recovering in March, the Fund's
relative performance did not suffer greatly because we did not have a
substantial over-weighting in technology. We also did not hold many mid-cap
technology companies, which tended to suffer the most.
Consistent with our investment emphasis on large-cap companies, the great
majority of our technology investments were in larger companies, especially
leading companies involved in the explosive growth of the internet and
electronic commerce. Some of the best performance came from companies such as
Oracle Systems, Sun Microsystems and Cisco Systems.
Oracle Systems, a relatively new holding, is a leading beneficiary of the rise
of the internet as a medium for commerce. Already the top seller of database
services to other companies, Oracle is taking advantage of the expansion of
business-to-business exchanges of information. Oracle is uniquely positioned to
help companies set up common platforms for information exchanges and then to
operate these platforms.
Cisco Systems and Sun Microsystems also are benefiting from the rapid growth in
technology. Cisco Systems is taking advantage of the convergence of telephone
systems and computer systems to take market share from the telephone equipment
companies. Sun Microsystems is the largest high-end provider of database and
communications servers for use on the internet. As data processing on the
internet grows more widespread, Sun's sophisticated platforms give it a
competitive advantage.
Top 5 Industries
----------------
(as a percentage of 3/31/2000 net assets)
Communications Equipment 12.0%
Diversified Financials 10.1%
Media 8.3%
Semiconductor Equipment & Products 7.9%
Software 7.2%
9
<PAGE>
EVERGREEN
Evergreen Fund
Portfolio Manager Interview
Outside of technology, what industries did you emphasize?
We also raised our emphasis in energy stocks, which had been under-weighted, as
we grew increasingly positive about the sector, including integrated energy
companies and oil services firms. Even after oil prices peaked in March at $34
a barrel and then started declining, we added to our positions because we
believe that earnings will continue to accelerate. We invested in integrated
companies because of the strength of their diversification. As their profit
margins from refining grew, they had the ability to re-invest proceeds in
exploration and production.
The recovery in the oil markets helped oil services companies, including those
involved in exploration. Two of the leading performers in oil services were
Schlumberger and Baker Hughes. Schlumberger is the bellwether of the oil
services industry. During the past year, it has divested itself of some of its
more capital-intensive operations, such as the ownership of oil rigs, to focus
more directly on technological operations, including oil exploration using
seismic technology. We invested in Baker Hughes to take advantage of many of
the same trends. At the same time, an earnings disappointment and a change in
management at Baker Hughes enabled the Fund to take advantage of the favorable
trends at an attractive stock price.
Top 10 Holdings
---------------
(as a percentage of 3/31/2000 net assets)
Cisco Systems, Inc. 5.1%
General Electric Co. 5.1%
Microsoft Corp. 4.9%
Intel Corp. 4.3%
Exxon Mobil Corp. 2.9%
Sun Microsystems, Inc. 2.9%
Oracle Systems Corp. 2.4%
Time Warner, Inc. 2.3%
Nortel Networks Corp. 2.3%
Disney (Walt) Co. 2.1%
What is your outlook?
We are generally positive towards the marketplace. Corporate earnings growth
remains strong, and stock prices should follow earnings.
Having said that, there are several places in the marketplace, notably
technology and biotechnology, where stock valuations have become quite
stretched. These high prices are particularly a concern in the context of rising
interest rates and the release of new government statistics indicating a
possible increase in inflationary pressures. Investors have been watching for
signs of inflation. While not conclusive evidence of a serious inflation
threat, these new statistics nevertheless are enough to remove any complacency
in the market about the lack of inflation. As a result, we would expect a
significant amount of volatility, particularly in technology, as corporations
report their earnings results for the first quarter of 2000.
We are more optimistic about the marketplace as a whole when we take a longer-
term view of the secular trends. We believe that the baby boomer generation will
need to save for retirement, and that should be positive for the capital
markets.
10
<PAGE>
EVERGREEN
Growth Fund
Fund at a Glance as of March 31, 2000
"The key driver to performance for small-caps will be earnings growth,and this
appears to remain strong."
Portfolio Management
--------------------
[PHOTO] [PHOTO]
Theodore W.Price, Jeffrey Drummond,
CFA CFA
Tenure: April 1985 Tenure: May 1993
[PHOTO]
Linda Ziglar,CFA
Tenure:September 1991
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE1
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 3/31/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
1Source: 2000 Morningstar, Inc.
2Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
Historical performance shown for Classes A, B and Y prior to their inception is
based on the performance of Class C, the original class offered. These
historical returns for Classes A and Y have not been adjusted to refelect the
effect of each Class' 12b-1 fees. These fees are 0.25% for Class A and 1.00% for
Classes B and C. Clayy Y does not pay a 12b-1 fee. If these fees had been
reflected, returns for Classes A and Y would have been higher.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS2
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Portfolio Inception Date: 4/15/1985 Class A Class B Class C Class Y
<S> <C> <C> <C> <C>
Class Inception Date 6/5/1995 10/18/1999 4/15/1985 11/19/1997
Average Annual Returns*
6 months with sales charge 50.08% 52.40% 55.02% n/a
6 months w/o sales charge 57.59% 57.15% 57.02% 57.88%
1 year with sales charge 62.78% 64.84% 67.70% n/a
1 year w/o sales charge 70.95% 69.84% 69.70% 71.44%
3 years 23.46% 23.90% 24.51% 25.40%
5 years 21.73% 21.86% 22.01% 22.39%
10 years 17.60% 17.74% 17.73% 17.83%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
6-month capital gain distributions
per share $0.87 $0.87 $0.87 $0.87
* Adjusted for maximum applicable sales charge.
</TABLE>
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
Class C Russell 2000 Consumer Price Index - US
3/31/90 10,000 10,000 10,000
3/31/91 11,469 10,679 10,490
3/31/92 14,511 12,945 10,824
3/31/93 16,594 14,868 11,158
3/31/94 18,047 16,505 11,437
3/31/95 18,917 17,413 11,764
3/31/96 26,801 22,453 12,098
3/31/97 26,505 23,600 12,432
3/31/98 39,494 33,515 12,603
3/31/99 30,154 28,067 12,821
3/31/00 51,166 38,533 13,219
Comparison of a $10,000 investment in Fund Class C shares2, versus a similar
investment in the Russell 2000 Growth Index (Russell 2000) and the Consumer
Price Index (CPI).
The Russell 2000 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.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
Smaller capitalization stock investing may offer the potential for greater long
term results, however, it is also generally associated with greater price
volatility due to the higher risk of failure.
All data is as of 3/31/2000 and subject to change. 11
<PAGE>
EVERGREEN
Growth Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended March 31, 2000, Evergreen Growth Fund Class C
shares had a total return of 57.02%. During the same period, the Russell 2000
Growth Index returned 26.83%. Fund returns are before deduction of applicable
sales charges.
Portfolio
Characteristics
---------------
Total Net Assets $646,510,770
Number of Holdings 152
Beta 0.93
What was the environment like for small-cap investing during the period?
During the last two quarters, investors have returned their focus to small cap
companies, like those we own, which can achieve tangible growth results. As a
result, Evergreen's small-cap portfolios achieved impressive performance results
in the first quarter relative to the Russell 2000 Growth Index. Our results were
particularly aided by strong performance in the technology, healthcare, and
energy sectors.
We have benefited from a return to sensibility in small growth stock valuations.
No longer are "pie in the sky" revenue estimates and long-term earnings losses
acceptable to investors, as was the case during much of 1999. Analysts and
investors alike have refocused their investment emphasis on tangible evidence of
strong revenue and earnings growth.
Top 5 Industries
----------------
(as a percentage of 3/31/2000 net assets)
Semiconductor Equipment & Products 12.3%
Commercial Services & Supplies 11.9%
Electronic Equipment & Instruments 9.2%
Communications Equipment 7.1%
Software 6.3%
What sectors contributed to the performance during the period?
Technology remains the heaviest weighting within the portfolio. Semiconductor
and semiconductor equipment names continue to provide our largest exposure
within technology. We believe this group will benefit from industrial demand
for cost saving equipment, nearly all of which requires semiconductors. Another
exciting area within technology is telecommunications equipment, where demand
for high-speed data capacity, particularly wireless, remains very strong.
Healthcare is our second heaviest sector weighting. Earnings growth in
healthcare companies, particularly in the pharmaceutical and services areas, has
been excellent for several years and should help drive performance this year.
After a dismal 1999 from a performance standpoint, healthcare stocks recovered
nicely during the first quarter. We suspect that the underperformance in
healthcare last year was strongly linked to funds flowing away from healthcare
into the red hot technology groups--a trend that could reverse this year.
Within the portfolio, we have been substantially over-weighted in the oil
service industry since the third quarter of 1999. Investors apparently realize
that improving energy prices should benefit oil service companies in 2000.
Looking forward, we anticipate remaining over-weighted in the energy sector but
will begin to transition from early cycle beneficiaries of high prices
(drillers) to later cycle beneficiaries (construction).
12
<PAGE>
EVERGREEN
Growth Fund
Portfolio Manager Interview
Top 10 Holdings
---------------
(as a percentage of 3/31/2000 net assets)
Network Associates 1.9%
Hanover Compressor Co. 1.6%
Commscope, Inc. 1.4%
Benchmark Electronics, Inc. 1.3%
Sensormatic Electronics Corp. 1.3%
Shaw Group, Inc. 1.3%
ATMI, Inc. 1.3%
Maverick Tube Corp. 1.3%
Parlex Corp. 1.2%
Edwards (J.D.) & Co. 1.2%
What is your outlook?
Despite the fact that small growth company valuations have moved up sharply over
the past year, it is important to remember that small capitalization stocks have
underperformed large-cap companies for most of the last five years. Both up
cycles and down cycles in small-caps tend to have extended durations, so we
appear to be in the early stages of an up cycle. The key driver to performance
for small-caps will be earnings growth, and this appears to remain strong.
Earnings growth projections for our companies average 35% for 2000 while average
price-to-earnings remain at a modest discount to growth rates.
13
<PAGE>
EVERGREEN
Masters Fund
Fund at a Glance as of March 31, 2000
"Stock prices in every market sector were volatile during the period, as a
virtual tug-of-war developed between "new economy" and "old economy" stocks."
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE1
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 3/31/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
1 Source: 2000 Morningstar, Inc.
2 Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
The Fund incurs 12b-1 expenses of 0.25% for Class A and 1.00% for Classes B and
C. Class Y does not pay a 12b-1 fee. Returns reflect expense limits previously
in effect, without which returns would have been lower. Please
All data is as of 3/31/2000 and subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS2
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Portfolio Inception Date: 12/31/1998 Class A Class B Class C Class Y
<S> <C> <C> <C> <C>
Class Inception Date 12/31/1998 12/31/1998 12/31/1998 12/31/1998
Average Annual Returns*
6 months with sales charge 25.69% 26.47% 29.40% n/a
6 months w/o sales charge 31.94% 31.47% 31.40% 32.08%
1 year with sales charge 29.24% 29.84% 32.77% n/a
1 year w/o sales charge 35.72% 34.84% 34.77% 36.13%
Since Portfolio Inception 20.59% 21.59% 23.73% 25.71%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
* Adjusted for maximum applicable sales charge.
</TABLE>
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
Evergreen Tax Strat Consumer Price
Foundation A S&P 500 S&P 400 Index - US
12/31/98 9,525 10,000 10,000 10,000
3/31/99 9,306 10,500 9,362 10,067
6/30/99 10,134 11,240 10,679 10,140
9/30/99 9,571 10,537 9,785 10,244
12/31/99 11,828 12,105 11,466 10,268
3/31/00 12,629 12,383 12,921 10,380
Comparison of a $10,000 investment in Evergreen Masters Fund Class A shares2,
versus a similar investment in the Standard & Poor's 500 Stock Index (S&P 500),
the Standard & Poor's 400 Mid-Cap Index (S&P 400), and the Consumer Price Index
(CPI).
The S&P 500 and the S&P 400 are unmanaged market indices which do not include
transaction costs associated with buying and selling securities or any other
mutual fund expenses. The CPI is a commonly used measure of inflation and does
not represent an investment return. It is not possible to invest directly in an
index.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
Foreign investments may contain more risk due to the inherent risks associated
with changing political climates, foreign market instability and foreign
currency fluctuations. Risks of international investing are magnified in
emerging or developing markets.
U.S. government guarantees apply only to the underlying securities of the Fund's
portfolio and not to the Fund's shares.
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.
14
<PAGE>
EVERGREEN
Masters Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended March 31, 2000, Class A shares of the Evergreen
Masters Fund returned 31.94%. During the same period, the S&P 500 Index
generated a 17.51% return and the S&P Mid-Cap 400 Index gained 31.06%. The
Fund's six-month return reflects the varied performance of the four portfolios
that compose the Fund. Fund returns are before deduction of applicable sales
charges.
Portfolio
Characteristics
---------------
Total Net Assets $326,763,573
Number of Holdings 572
What was the investment environment like during the six-month period?
The economic environment during the six-month period was positive for stock
investors. Economic growth was strong, corporate profits were good, unemployment
remained at a low level and consumer spending was high. While energy prices rose
dramatically, inflation remained under control. Nevertheless, the Federal
Reserve Board continued its tight monetary policy of raising short-term interest
rates in a series of pre-emptive strikes against inflation. Over the six-month
time span, the Fed raised the federal funds rate three times, each by 0.25%.
Top 5 Industries
----------------
(as a percentage of 3/31/2000 net assets)
Semiconductor Equipment & Products 7.2%
Oil & Gas 7.1%
Commercial Services & Supplies 6.6%
Communications Equipment 6.3%
Energy Equipment & Services 6.2%
15
<PAGE>
EVERGREEN
Masters Fund
Portfolio Manager Interview
What areas contributed to performance during the period?
Stock prices in every market sector were volatile during the period, as a
virtual tug-of-war developed between "new economy" and "old economy" stocks.
Much of the period was marked by swift and often severe reactions to unmet
expectations. Investors would simply rotate out of stocks that were
disappointing into others that were the latest favorites in the technology,
telecommunications or biotechnology areas. While overall market levels continued
to advance, it was the new economy shares, those in the broad area of
technology, that were victorious. The performance of old economy companies, such
as financial institutions, consumer products companies, and commodity-related
businesses, lagged that of the high-flying technology sector. Stocks across the
capitalization spectrum (small-cap, mid-cap, and large-cap) participated in the
stock market's upward trend. However, for much of the period, investors
continued to favor growth stocks over value stocks. Toward the end of the six
months, market sentiment changed, and investors became concerned about the high
valuations of growth issues. As the period drew to a close, investors appeared
to be turning their attention to value stocks, an area they had neglected for
several months.
Top 10 Holdings
---------------
(as a percentage of 3/31/2000 net assets)
Microsoft Corp. 2.1%
Intel Corp. 2.0%
Cisco Systems, Inc. 1.9%
General Electric Co. 1.9%
Transocean Sedco Forex, Inc. 1.8%
Kroger Co. 1.5%
Noble Drilling Corp. 1.4%
VISX, Inc. 1.4%
Newfield Exploration Co. 1.3%
Wal-Mart Stores, Inc. 1.2%
Evergreen Masters Fund employs an investment program based on a "manager of
managers" strategy. Currently, the Fund is composed of four different investment
advisors. Each advisor brings a unique investment approach to the Fund. As a
result, the Fund has the potential to benefit from various investment methods
and styles.
16
<PAGE>
EVERGREEN
Masters Fund
Portfolio Manager Interview
Portfolio
Management
----------
Evergreen Team
In March 2000, a new team headed by Phillip Foreman and Irene O'Neill began
managing the Evergreen Mid-Cap Value Portfolio. Both managers are senior
portfolio managers and have had extensive experience in the mid-cap area. Mr.
Foreman is a Charter Financial Analyst and Certified Financial Planner. He has
over 14 years of investment management experience. Prior to joining Evergreen
Asset Management, Mr. Foreman was portfolio manager of WM Growth & Income Fund
in the Washington Mutual Group. Ms. O'Neill, a Charter Financial Analyst, has
over 21 years of investment management experience. Prior to becoming a member of
the Evergreen Asset Management team, she was an analyst with Value Line
Investment Survey.
During the six-month period that ended March 31, 2000, the economic environment
for mid-cap stocks was positive. Strong economic growth and relatively low
inflation provided an excellent backdrop for mid-cap stocks. While many mid-cap
companies performed well, those in the technology and biotechnology sectors were
market leaders.
During the six months, we maintained the portfolio's investment strategy of
seeking great companies with outstanding business prospects that were selling at
attractive valuations. While this value approach to investing had been out of
favor for several months, during the first quarter of 2000, there was a reversal
in market sentiment regarding value stocks. Many investors became concerned
about the high valuations of growth stocks and began to turn their attention to
value stocks.
In managing the portfolio over the six-month period, we made a number of
changes. To take advantage of the potential in the broad area of technology, we
boosted the portfolio's technology weighting from 5% at the beginning of the
period to 25% at the end of the period. Semiconductor stocks accounted for most
of the portfolio's new investment in the high-tech area. Semiconductor companies
have benefited from the build-out of the cellular and wireless telephone
industry. The prospects for wireless data infrastructure should allow growth to
continue. We added Altera, a company that makes programmable logic chips for the
cellular telephone infrastructure. Altera was recently added to the S&P 500
Index. By the end of the period, technology stocks accounted for the largest
sector allocation in the portfolio, even though it remained underweighted
relative to broad market indexes.
17
<PAGE>
EVERGREEN
Masters Fund
Portfolio Manager Interview
The financial and consumer stocks in the portfolio held back performance.
Companies in both of these market segments were negatively affected by the
Federal Reserve Board's tight monetary policy. Three times during the period,
the Fed raised the Federal Funds Rate by 0.25%. Rising rates generally result in
weaker profits for banks and other financial institutions, and over time they
usually dampen consumer spending. Over the period, we reduced the portfolio's
investments in these two interest-rate sensitive areas.
We added to the portfolio's investments in the utility area. We believe that the
deregulation of the electric utility industry is creating opportunity for
innovative utility managements. The companies most likely to prosper are those
transforming themselves from regulated utilities to competitive energy
providers. Companies in the utilities area that were added to the portfolio
included Calpine Corporation, an independent power producer, and Dynergy, a
producer of diverse energy products and services.
Looking ahead, we believe the recent downturn in the market may benefit the
portfolio over the long term. Over the past several months, the stocks of many
attractive companies became overvalued and their higher share prices made them
unsuitable for the portfolio. As share prices become more reasonable, we believe
there will be many companies with good fundamentals that meet our criteria as
value investments. We believe the economic environment for mid-cap value stocks
should continue to be positive. We think the Fed is nearing the end of its cycle
of interest-rate hikes and that once the uncertainty over interest rates
subsides, value stocks should perform well.
18
<PAGE>
EVERGREEN
Masters Fund
Portfolio Manager Interview
Portfolio
Management
----------
MFS Team
The S&P Mid-Cap Growth Index outperformed virtually all U.S. market indices with
the exception of some pure technology averages. Furthermore, mid-cap growth
stocks outperformed mid-cap value stocks in the first quarter.
The portfolio was postured in a valuation-sensitive manner from the beginning of
the quarter, with a significant underweight in the highly-priced technology
sector and a significant overweight in the energy and healthcare sectors that
had attractive price-earnings to growth characteristics and above average growth
prospects.
An overweighting in energy stocks was the major contributor to the sector's
relative outperformance. A supply/demand imbalance in the energy sector drove
the price of oil in February above $30 a barrel for the first time since the
Persian Gulf War in 1991. Specifically, deep-water drilling and natural gas
holdings in Transocean, Noble Drilling, Newfield Exploration, and Global
Industries were all major beneficiaries of the imbalance.
Stock selection within the business services sector also drove performance, with
positions in Network Solutions and Sungard Data dominating the portfolio's
holdings in that sector. Network Solutions' shares surged after fourth-quarter
profits nearly doubled as the result of unprecedented demand for dot-com
addresses (Network Solutions licenses all dot.com addresses). Sungard shares
spiked after exceeding Y2K-tainted expectations for 1999 revenues and acquiring
Microbank Software late in the first quarter. The portfolio continues to focus
within this sector on companies that manufacture equipment allowing the internet
to function and expand on check, credit card and bank processing companies with
recurring revenue streams.
The technology sector continued its ascent during the first quarter of 2000, and
the portfolio's underweighting in technology detracted most significantly from
relative performance. Furthermore, stock selection within technology hampered
performance, with holdings in RSA Security, Banyan Systems, and Ancor
Communications all suffering significant losses. RSA Security fell in line with
other security software makers on concerns that the shares had risen too high
too quickly. Investors also deemed Banyan to be overvalued. Ancor
Communications fell nearly 40% in January on speculation that fourth-quarter
revenues would miss estimates.
Stock selection in the retailing sector, specifically Kroger Company, detracted
from the portfolio's return in the first quarter as a lack of interest punished
the entire sector.
The single worst performing stock in the portfolio during the first quarter was
VISX Inc., a provider of laser eye surgery equipment, which suffered a
precipitous loss in value after competitors introduced a similar product at a
significantly cheaper price. Regardless, the portfolio has maintained its
position in VISX in light of tremendous demand and the likelihood of significant
future gains in market share. The portfolio's exposure in healthcare continues
to remain focused in medical device companies such as Cytyc Corp, a manufacturer
of a proprietary pap smear test, which was the single greatest contributor
toward absolute performance.
19
<PAGE>
EVERGREEN
Masters Fund
Portfolio Manager Interview
Portfolio
Management
----------
Oppenheimer Team
In the last two quarters, the U.S. economy has been expanding rapidly. Gross
Domestic Product expanded by 7.3% in the fourth quarter of 1999 and in the first
quarter of 2000, is estimated at 5.5%. These rates are probably in excess of
normal sustainable growth, estimated by the Federal Reserve Board (the Fed) at
31/2 - 4% per year. Accordingly, the Fed is in a tightening mode as it tries to
engineer a "soft landing".
During the first quarter of 2000, there was wild see-saw action in the stock
market. During the first two months, technology stocks soared while most others
lagged by a wide margin. Then, during March, the dynamics reversed sharply as
the technology sector corrected sharply.
The portfolio is managed with a disciplined quantitative strategy that seeks to
produce consistently good results relative to the S&P 500 Index. Oppenheimer's
Evergreen Masters Fund portfolio has performed well against the S&P 500.
The sector which helped relative performance the most in the quarter was
technology: although Oppenheimer's Evergreen Masters Fund portfolio entered the
quarter a bit underweighted, our stock selection within technology was
excellent, resulting in a positive contribution overall. The other sector which
made a significant positive contribution was energy. Oppenheimer's Evergreen
Masters Fund portfolio entered the quarter overweighted (11.52% vs. 5.49%) in
the energy sector, which performed well. Our stock selection within the energy
sector was above average, too.
The three individual stocks, which made the largest contribution to the Fund's
performance were Intel, Cisco, and Time Warner.
We did not make any major changes in the Fund's portfolio sector weights during
March. The sector with the largest net buys was energy. We continue to see many
attractive investment opportunities within the energy sector. We were also net
buyers in capital goods, basic materials and technology. The sector with the
largest net sales was financials. We were also net sellers of communication
services, consumer cyclicals, consumer staples, healthcare, transportation and
utilities.
The major divergences in relative valuation within the market have been somewhat
reduced in the past month, as many of the technology stocks have corrected
significantly. Some areas of speculative excess remain, such as IPO activity and
public day-trading. At this point, we think prospects for reasonably priced
growth stocks look good relative to the deep-value category, and it appears that
our models will be guiding us into more growth-oriented stocks in the months
ahead. Markets have returned to more "normal" relative valuations, and we
believe that our disciplined, quantitative approach is likely to lead to better
relative performance over the balance of the year.
20
<PAGE>
EVERGREEN
Masters Fund
Portfolio Manager Interview
Portfolio
Management
--------------------------------------------------------------------------------
Putnam Team
The U.S. equity markets climbed to new heights in the early part of the six-
month period ended March 31, 2000, then struggled to ascend even higher after
the turn of the new year. The first half of the period was notable primarily for
the undisputed reign of technology stocks within an extremely narrow market
favoring large-cap growth stocks. This sector benefited from billions spent by
U.S. corporations to ward off the Y2K bug, made headlines in the monopoly suit
against Microsoft, changed the way consumers shopped, and drove the IPO market
to record levels.
The markets were beset by volatility in the second half of the period. Dramatic
market moves, both up and down, occurred within not just weeks but also within
single days. The divergence between "old economy" and "new economy" stocks held
the attention of investors and technology was the favored sector.
Mergers and acquisitions continued to fuel the equity market. The semiannual
period ended with a record quarter for such activity, most notably including
America Online's $166 billion takeover of Time Warner Inc.
The Federal Reserve Board attempted to put the brakes on fervid economic growth,
raising interest rates three times during the semiannual period. Their efforts
resulted in the highest fed funds rate since May 1995 and the steepest discount
rate since August 1991. Nevertheless, the economy maintained its rapid momentum,
with a fourth-quarter GDP rate that was revised upward three times to 7.13%, the
highest level in nearly 16 years. The economy was fueled by a hearty holiday
shopping season that spilled into the new year with continued positive consumer
sentiment. Despite sharp increases in energy prices in the second half of the
period, inflation maintained its dormant state and unemployment remained low.
Evergreen Masters Fund significantly outperformed the S&P 500 Index for the six-
month period. Throughout the period, the portfolio was positioned to capitalize
on the vigorous technology sector with beneficial holdings in
telecommunications, communications services, and semiconductor-related stocks.
Consumer staples holdings also contributed notably to semiannual performance, as
did health-care stock selection and utilities and conglomerates stocks.
Going forward, the strong pattern of economic expansion is expected to continue
for the foreseeable future, although moderating from 1999's high level. We are
closely monitoring several factors that could affect stock prices as the year
2000 proceeds, including rising interest rates, the high valuations of
technology companies, the bloated level of U.S. household debt (and the rapid
increase in margin debt related to stock market speculation), continuing
heightened market volatility, the durability of earnings growth in a rising-rate
environment, and the increased pressure on profit margins imposed by higher
energy prices.
It is important to bear in mind that the U.S. economy remains strong. We believe
that high-quality growth companies, particularly within the technology and
communications sectors, will continue to benefit from persistent demand and
visible earnings growth. The Fund has been positioned accordingly, with ongoing
overweight exposure to technology, consumer staples, and conglomerates and
underweight positions in capital goods and basic materials.
21
<PAGE>
EVERGREEN
Omega Fund
Fund at a Glance as of March 31, 2000
"Market volatility may provide the opportunity to invest in consistent growth
companies at more reasonable prices."
Portfolio
Management
--------------------------------------------------------------------------------
[PHOTO]
Maureen E.Cullinane, CFA
Tenure: April 1989
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 3/31/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
/1/ Source: 2000 Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
Historical performance shown for Classes B, C and Y prior to their inception is
based on the performance of Class A, the original class offered. These
historical returns for Classes B, C and Y have not been adjusted to reflect the
effect of each Class' 12b-1 fees. These fees are 0.25% for Class A and 1.00% for
Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had been
reflected, returns for Classes B and C would have been lower while returns for
Class Y would have been higher.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Portfolio Inception Date: 4/29/1968 Class A Class B Class C Class Y
Class Inception Date 4/29/1968 8/2/1993 8/2/1993 1/13/1997
<S> <C> <C> <C> <C>
Average Annual Returns*
6 months with sales charge 48.42% 50.31% 53.25% n/a
6 months w/o sales charge 55.83% 55.31% 55.25% 56.07%
1 year with sales charge 53.77% 55.31% 58.24% n/a
1 year w/o sales charge 61.43% 60.31% 60.24% 61.96%
3 years 40.73% 41.48% 41.94% 43.26%
5 years 30.49% 30.55% 30.67% 31.93%
10 years 21.68% 21.60% 21.62% 22.35%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
6-month capital gain distributions
per share $ 0.99 $ 0.99 $ 0.99 $ 0.99
</TABLE>
* Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
Evergreen Russell 1000 S&P 500 Consumer Price
Omega A Growth Composite Index - US
3/31/90 9,525 10,000 10,000 10,000
3/31/91 11,793 12,216 11,441 10,490
3/31/92 14,325 13,899 12,705 10,824
3/31/93 15,842 15,224 14,639 11,158
3/31/94 17,195 15,102 14,855 11,437
3/31/95 17,916 17,762 17,168 11,764
3/31/96 23,818 23,442 22,679 12,098
3/31/97 24,318 27,539 27,175 12,432
3/31/98 36,458 41,159 40,218 12,603
3/31/99 44,080 52,728 47,648 12,821
3/31/00 71,161 70,714 56,194 13,219
Comparison of a $10,000 investment in Evergreen Omega Fund Class A shares/2/,
versus a similar investment in the Russell 1000 Growth Index (Russell 1000
Growth), the Standard & Poor's 500 Index (S&P 500) and the Consumer Price Index
(CPI).
The Russell 1000 Growth and the S&P 500 are unmanaged market indices which do
not include transaction costs associated with buying and selling securities or
any mutual fund expenses. The CPI is a commonly used measure of inflation and
does not represent an investment return. It is not possible to invest directly
in an index.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
Smaller capitalization stock investing may offer the potential for greater long
term results, however, it is also generally associated with greater price
volatility due to the higher risk of failure.
Foreign investments may contain more risk due to the inherent risks associated
with changing political climates, foreign market instability and foreign
currency fluctuations.
All data is as of 3/31/2000 and subject to change.
22
<PAGE>
EVERGREEN
Omega Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended March 31, 2000, Evergreen Omega Fund Class A
shares had a total return of 55.83%. During the same period, the Russell 1000
Growth and the S&P 500 returned 34.06% and 17.51%, respectively. The median
return of funds in the multi-cap growth category was 52.07%, according to Lipper
Inc., an independent monitor of mutual fund performance. Fund returns are
before deduction of any applicable sales charges.
Portfolio
Characteristics
---------------
Total Net Assets $1,867,582,715
Number of Holdings 83
Beta 0.88
What was the environment like during the six-month period?
The period offered an excellent investment environment. The growth style of
investing outperformed the value style, and small and mid-cap stocks started to
move ahead of large-cap stocks. Reversing the trend of 1997 and 1998, active
managers or stock-pickers tended to outperform market indices. The U.S. economy
grew at a very brisk pace, but without evidence of inflation. While interest
rates rose during the period, productivity gains helped corporations enjoy
healthy earnings growth.
Technology provided the tools for these productivity gains, and technology
stocks were the dominant performers in the market. Stocks of internet
infrastructure companies, semi-conductor manufacturers and software developers
all did very well. However, while these new economy stocks surged, many old
economy stocks posted anemic results. Stocks in industries such as consumer
staples, capital goods and commodity-related companies lagged the markets.
Consumer goods companies such as Coca-Cola and Gillette, which traditionally
have depended on their ability to raise prices, found they had little pricing
power. Their stock prices suffered as their earnings growth rates lagged those
of technology companies, which thrived in a deflationary environment
characterized by their product innovation and volume growth rather than price
increases.
What factors contributed to the performance of the Omega Fund?
We focused on the long-term investment themes that have guided us: the "Aging of
America" and the "Growth in Productivity." We maintained a high weighting in
technology at about 50% of net assets.
We looked for opportunities among companies of all sizes, and we emphasized
stocks of those companies with consistent earnings growth. To this base, we
added opportunities of companies with accelerating earnings.
We needed to be selective in pursuing the "Aging of America" theme, even as
members of the large, baby boomer generation enter their 50s. Many healthcare
stocks did not perform well during the six months. However, companies such as
Pharmacia & Upjohn and American Home Products had good stock performance.
Pharmacia & Upjohn advanced approximately 40% while American Home Products
appreciated 30% during this period. Pharmacia & Upjohn has completed its
acquisition of Monsanto. We believe it should be able to successfully merge the
pharmaceutical operations and reduce dependence on the former Monsanto's
agricultural-chemical business. American Home Products has been restructured
and is considered an attractive acquisition candidate.
23
<PAGE>
EVERGREEN
Omega Fund
Portfolio Manager Interview
Other healthcare stocks that contributed to performance included Medtronic,
which manufacturers cardiac devices, and Millenium Pharmaceuticals, a
diversified biotechnology company. During the period, we made several other
biotechnology investments, which we have since sold after rapid price gains.
We also increased our weighting in oil service stocks; we anticipate an
increased level of exploration and drilling activity in the wake of the near
doubling of energy prices over the past year.
Top 5 Industries
----------------
(as a percentage of 3/31/2000 net assets)
Semiconductor Equipment & Products 14.8%
Software 8.5%
Communications Equipment 8.2%
Computers & Peripherals 7.1%
Pharmaceuticals 6.9%
What type of investments have you made in technology?
The productivity theme is a technology theme. Hardware, software and
telecommunications companies are helping American industry become more
efficient. We have placed a heavy emphasis on a core of solid, established
technology companies with seasoned management and products and services that
enhance economic productivity. The leading companies included Cisco Systems in
networking, EMC in data storage, and Intel in semi-conductors.
In addition to these core names, we have invested in some emerging companies
such as: Sandisk, the manufacturer of memory chips used in hand-held devices,
mobile phones and digital cameras; and Nvidia, the manufacturer of chips for
graphics programs.
Other technology companies that made strong contributions to performance
included: PMC Sierra and RF Micro Devices, which produce switches and equipment
for the telecommunications industry; Ciena and JDS Uniphase, which produce fiber
optic components; Entrust Technology, which provides products for electronic
encryption necessary for secure electronic commerce; and Cree Research, which
manufactures semiconductor chips used in cellular phones.
Top 10 Holdings
---------------
(as a percentage of 3/31/2000 net assets)
Cisco Systems, Inc. 3.3%
American Home Products Corp. 3.3%
EMC Corp. 3.2%
Intel Corp. 3.0%
Pharmacia & Upjohn, Inc. 2.4%
Micron Technology, Inc. 2.4%
Sandisk Corp. 2.4%
Best Buy Co., Inc. 2.3%
Microsoft Corp. 2.2%
Citigroup, Inc. 2.0%
24
<PAGE>
EVERGREEN
Omega Fund
Portfolio Manager Interview
What is your outlook?
We think economic growth will begin to slow during the second half of 2000 as a
result of the Federal Reserve Board's continued tightening of the money supply
through increases in short-term rates. With the exception of energy prices, we
think inflation should remain muted. Historically, bull markets typically have
been ended by recessions, and we see no signs of a recession. The year 2000 is
a presidential election year, which typically is good for the stock market.
Overall, we believe the economy should be healthy and the stock market should
continue to perform positively, although probably not as well as it did in the
past six months. Technology stocks that have risen at extraordinarily fast
paces may lose some of their gains, and price corrections may be particularly
evident in the technology-heavy NASDAQ Composite Index. In an environment in
which day-traders seem to have been buying indiscriminately, some stocks may
have come too far, too fast. However, we may see benefit in the recent, sharp
price fluctuations and volatility in the market. Complacency has declined and
investors are being more careful about what they buy. Market volatility may
provide the opportunity to invest in consistent growth companies at more
reasonable prices. We think we should have a reasonably good environment.
25
<PAGE>
EVERGREEN
Small Company Growth Fund
Fund at a Glance as of March 31, 2000
"After exceptionally strong performance in the final three months of 1999 and
the first two months of 2000,we became concerned about the risks in owning
stocks that had enjoyed such price run-ups."
Portfolio
Management
--------------------------------------------------------------------------------
[PHOTO]
J. Gary Craven, CFA, CPA
Tenure: November 1996
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 3/31/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
/1/ Source: 2000 Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
Historical performance shown for Classes A, C and Y prior to their inception is
based on the performance of Class B, the original class offered. These
historical returns for Classes A and Y have been adjusted to eliminate the
effect of the higher 12b-1 fees applicable to Class B. These fees are 0.25% for
Class A and 1.00% for Classes B and C. Class Y does not pay a 12b-1 fee. If
these fees had not been eliminated, returns would have been lower.
All data is as of 3/31/2000 and subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Portfolio Inception Date: 9/11/1935 Class A Class B Class C Class Y
Class Inception Date 1/20/1998 9/11/1935 1/26/1998 1/26/1998
<S> <C> <C> <C> <C>
Average Annual Returns*
6 months with sales charge 65.83% 68.24% 71.24% n/a
6 months w/o sales charge 74.03% 73.24% 73.24% 74.04%
1 year with sales charge 97.54% 101.15% 103.76% n/a
1 year w/o sales charge 107.37% 106.15% 105.76% 107.89%
3 years 28.49% 29.12% 29.64% 30.89%
5 years 19.98% 20.13% 20.27% 21.45%
10 years 19.74% 19.53% 19.34% 20.61%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
</TABLE>
* Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
Evergreen Small Russell Consumer Price
Co Growth B 2000 Index - US
3/31/90 10,000 10,000 10,000
3/31/91 12,556 10,679 10,490
3/31/92 15,831 12,945 10,824
3/31/93 17,701 14,868 11,158
3/31/94 21,561 16,505 11,437
3/31/95 23,612 17,413 11,764
3/31/96 31,240 22,453 12,098
3/31/97 27,275 23,600 12,432
3/31/98 38,033 33,515 12,603
3/31/99 28,886 28,067 12,821
3/31/00 59,540 38,533 13,219
Comparison of a $10,000 investment in Evergreen Small Company Growth Fund Class
B shares 2, versus a similar investment in the Russell 2000 Index (Russell 2000)
and the Consumer Price Index (CPI).
The Russell 2000 is an unmanaged market index which does not include transaction
costs associated with buying and selling securities or any mutual fund expenses.
The CPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
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.
26
<PAGE>
EVERGREEN
Small Company Growth Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended March 31, 2000, Evergreen Small Company Growth
Fund's Class B shares had a total return of 73.24%. During the same period, the
Russell 2000 Index, a commonly used benchmark for smaller company stocks,
returned 26.83%, while the median return of funds in the Mid-Cap Growth category
was 70.09%, according to Lipper Inc., an independent monitor of mutual fund
performance. The Fund performed very well in a generally favorable environment,
especially for technology and biotechnology stocks. These returns are before
deduction of any applicable sales charges.
Portfolio
Characteristics
---------------
Total Net Assets $1,325,462,470
Number of Holdings 146
Beta 0.90
What was the investment environment like during the period?
Conditions were very favorable. After the extended large company stock rally of
the previous three years, investors took notice of the extreme disparity in
valuations between small company stocks and large company stocks. As a result,
money flowed into the small and mid-cap stock markets, which outperformed the
large company market for the first time in several calendar quarters.
In technology, the growth of the internet created demand for emerging hardware
and software companies, especially those supplying the infrastructure for
electronic commerce. Wireless communications also continued to expand.
However, the most explosive growth during the period was in biotechnology, which
had been in the doldrums for several years. The announcement in December 1999
of important advances in genomics, or the science of mapping the human genetic
structure, created a surge in the stock prices of companies with the ability to
use the new technology in their drug development work. The stocks of some
biotechnology companies rose explosively before giving back part of their gains
in March.
What strategies did you pursue within this environment?
We continued to seek out opportunities in technology, especially in
telecommunications equipment, and biotechnology. In total, hardware and software
companies typically accounted for more than 40% of net assets during the period.
In hardware, we emphasized opportunities in mobile appliances and wireless
telecommunications, while in software we emphasized products that helped
companies be more efficient. In investing in the internet, we emphasized
companies involved in building the infrastructure, rather than retail-oriented
websites whose futures are uncertain, we believe.
After exceptionally strong performance in the final three months of 1999 and the
first two months of 2000, we became concerned about the risks in owning stocks
that had enjoyed such price run-ups. As many high-tech and biotechnology stocks
reached extremely high valuations, we reduced our weightings in these sectors by
17% of net assets during the final month of the period to lock in profits and
reduce the overall risk of the portfolio. We increased our weightings in retail
and other industries, where we found healthy outlooks and attractive stock
valuations.
27
<PAGE>
EVERGREEN
Small Company Growth Fund
Portfolio Manager Interview
Top 5 Industries
----------------
(as a percentage of 3/31/2000 net assets)
Diversified Telecommunications Services 9.5%
Semiconductor Equipment & Products 9.5%
Electronic Equipment & Instruments 7.5%
Commercial Services & Supplies 7.4%
Software 7.0%
What were some of the areas that contributed to the exceptionally strong
performance?
Technology and biotechnology were the leaders.
Throughout most of the period, we maintained a heavy concentration on
technology, both hardware and software companies, although we rotated our
investments within these industries. Hardware company investments which
comprised 23% of net assets on March 31, rose by 163% during the six months,
while software company investments, which comprised 21% of net assets, rose by
135%.
In telecommunications, leading contributors include RF Micro Devices, which
produces integrated circuits for wireless communications. Its stock rose 193%
during the six months. Other investments included Kopin and Three-Five Systems,
both of which manufacture components for portable communications systems. Both
stock prices tripled during the period.
The leading software contributor to performance was I2 Technologies, which rose
by 560% during the six months. This is a well established company specializing
in supply chain software. Its products have become in demand as business-to-
business activity over the internet has expanded.
Among the biotechnology investments, the biggest contributor to performance was
Millenium Pharmaceuticals, a diversified company involved in research and
product development. Its stock price rose by 100%. A smaller position in the
fund, but a spectacular performer, was Medarex Inc., which is developing anti-
bodies to fight cancer and other diseases. Its stock rose by 605% during the
six months.
Top 10 Holdings
---------------
(as a percentage of 3/31/2000 net assets)
McLeod USA, Inc., Cl. A 3.1%
Amdocs Ltd. 2.3%
Roper Industries, Inc. 2.2%
CIENA Corp. 1.9%
Rational Software Corp. 1.9%
Kopin Corp. 1.8%
Univision Communications, Inc., Cl. A 1.8%
Sandisk Corp. 1.8%
Millennium Pharmaceuticals, Inc. 1.7%
JDS Uniphase Corp. 1.6%
28
<PAGE>
EVERGREEN
Small Company Growth Fund
Portfolio Manager Interview
What is the outlook for investing in small and mid-cap companies after such a
strong rally?
We believe the outlook remains excellent. Earnings growth is strong and
opportunities are increasing in the new economy technology stocks as long-term
interest rates begin to decline. At the same time, we are seeing increasing
price volatility on a day-to-day basis, which is to be expected in the small
company market after such strong performance. There is a tendency for investor
enthusiasm to push the market too far, too fast, and then to pull back and cause
a market correction. We would expect to see at least one market correction of
10% or more as well as liquidity issues tied to changing market sentiments. We
are adjusting our trading strategy to deal with this reality.
Despite these short-term challenges, we expect to continue to see many
opportunities in technology and in the small company market in general during
the next year.
29
<PAGE>
EVERGREEN
Stock Selector Fund
Fund at a Glance as of March 31, 2000
"We think the market's recent sell-off will cause sentiment to shift toward
value stocks from the unprecedented six-year emphasis on growth stocks."
Portfolio Management
--------------------------------------------------------------------------------
[PHOTO] [PHOTO]
Timothy M. Eric M.Teal
Stevenson, Tenure: October 1999
CFA, CMT
Tenure: October 1999
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 3/31/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
/1/ Source: 2000 Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
Historical performance shown for Classes B, C and Y prior to their inception is
based on the performance of Class A, the original class offered. These
historical returns for Classes B, C, and Y have not been adjusted to reflect the
effect of each Class' 12b-1 fees. These fees are 0.25% for Class A and 1.00% for
Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had been
reflected returns for Classes B and C would have been lower while returns for
Class Y would have been higher.
All data is as of 3/31/2000 and subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Portfolio Inception Date: 2/28/1990 Class A Class B Class C Class Y
Class Inception Date 2/28/1990 11/7/1997 6/30/1999 2/21/1995
<S> <C> <C> <C> <C>
Average Annual Returns*
6 months with sales charge 8.84% 8.77% 11.80% n/a
6 months w/o sales charge 14.26% 13.77% 13.80% 14.40%
1 year with sales charge 8.12% 7.63% 10.84% n/a
1 year w/o sales charge 13.53% 12.63% 12.84% 13.78%
3 years 19.65% 16.69% 21.36% 21.90%
5 years 22.03% 20.47% 23.07% 23.48%
10 years 16.81% 16.16% 17.31% 17.51%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
6-month income dividends
per share --- --- --- $ 0.01
6-month capital gain distributions
per share $ 2.34 $ 2.34 $ 2.34 $ 2.34
</TABLE>
* Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
Evergreen Stock S&P 500 Consumer Price
Selector A Composite Index - US
3/31/90 9,525 10,000 10,000
3/31/91 11,116 11,441 10,490
3/31/92 13,286 12,705 10,824
3/31/93 14,773 14,639 11,158
3/31/94 15,184 14,855 11,437
3/31/95 16,662 17,168 11,764
3/31/96 22,498 22,679 12,098
3/31/97 26,314 27,175 12,432
3/31/98 38,196 40,218 12,603
3/31/99 41,671 47,648 12,821
3/31/00 47,306 56,194 13,219
Comparison of a $10,000 investment in Evergreen Stock Selector Fund Class A
shares/2/, versus a similar investment in the Standard & Poor's 500 Index (S&P
500) and the Consumer Price Index (CPI).
The S&P 500 is an unmanaged market index which does not include transaction
costs associated with buying and selling securities or any mutual fund expenses.
The CPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
Returns reflect expense limits previously in effect, without which returns would
have been lower.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
Smaller capitalization stock investing may offer the potential for greater long
term results, however, it is also generally associated with greater price
volatility due to the higher risk of failure.
Foreign investments may contain more risk due to the inherent risks associated
with changing political climates, foreign market instability and foreign
currency fluctuations
30
<PAGE>
EVERGREEN
Stock Selector Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended March 31, 2000, Evergreen Stock Selector Fund
Class A shares had a total return of 14.26%. During the same period, the S&P 500
returned 17.51%. Much of the Fund's under-performance occurred in the fourth
quarter of 1999, when declines in several holdings detracted significantly from
the Fund's performance. Relative performance improved considerably in the first
quarter of 2000 when the Fund's 1.99% return rivaled the 2.29% produced by the
S&P 500. As an Index, the S&P 500 is not subject to the same expenses incurred
by a mutual fund. We are optimistic that the Fund's improved first quarter
results reflect its potential to generate solid longer-term performance versus
the S&P 500. Fund returns are before deduction of any applicable sales charges.
Portfolio
Characteristics
----------------
Total Net Assets $477,800,456
Number of Holdings 127
Beta 1.11
What was the Fund's investment environment like during the period?
Stock prices were extremely volatile, with growth stocks continuing to
outperform value stocks. Evergreen Stock Selector Fund seeks to strike a balance
between the two. Over the past six months, the market followed a trend that has
been in place since 1998, narrow market leadership, with the largest, most
liquid growth and technology-oriented companies driving the S&P 500 higher.
Having market leadership concentrated in relatively few companies made it very
challenging to outperform the Index while remaining well-diversified. We also
saw a performance disparity between the performance of "new economy" and "old
economy" stocks. The Fund has maintained a broad representation of both
categories. Until late March, "new economy" stocks grabbed all the headlines and
seemed to be invincible. With their recent price slide, we think investors are
re-evaluating some of the assumptions they made regarding price and value.
Top 5 Industries
----------------
(as a percentage of 3/31/2000 net assets)
Diversified Financials 9.7%
Semiconductor Equipment & Products 9.3%
Communications Equipment 9.0%
Software 8.4%
Media 6.0%
What strategies did you use in managing the Fund?
We remained well diversified. Typically, the Fund is comprised of 100-140
holdings. We concentrated in larger-capitalization stocks, but also found some
mid-cap stocks that we thought had attractive fundamentals and upside potential.
The Fund's top five sector weightings were similar to those of the S&P 500. We
placed greater emphasis on investments in technology, energy, utilities and
basic materials. In contrast, we de-emphasized financial services and consumer
staples. Our technology stocks returned approximately 60% during the period,
outpacing the return of the S&P 500 technology stocks, which generated just over
a 53% increase. Some of the other holdings that delivered impressive returns
included News Corp., which has risen 78% since the Fund has owned it; Adobe
Systems, a recent addition that was up 66% during the fiscal period, and
Corning, Inc., which also rose 50% over the past six months. The Fund also
benefited
31
<PAGE>
EVERGREEN
Stock Selector Fund
Portfolio Manager Interview
from the America Online/Time Warner merger, with its position in Time Warner
appreciating almost 50%. Some stocks detracted from performance, however. Most
of the losses occurred in the first half of the fiscal period. Tyco
International's stock fell 24% in the fourth quarter of 1999. Some of the
industries that limited performance included basic materials, as some of the
Fund's holdings in the steel and metal industries did not participate in the
market's rally and the financial services sector. Many of the Fund's holdings
were focused on regional banks versus the stronger performing money-center
banks.
Top 10 Holdings
---------------
(as a percentage of 3/31/2000 net assets)
Microsoft Corp. 4.6%
General Electric Corp. 3.4%
Cisco Systems, Inc. 3.1%
Texas Instruments, Inc. 2.6%
Citigroup, Inc. 2.3%
Goldman Sachs Group, Inc. 2.2%
American International Group, Inc. 2.0%
Corning, Inc. 1.9%
Oracle Systems Corp. 1.8%
Anadarko Petroleum Corp. 1.7%
What is your outlook?
Over the near-term, we expect stock prices to remain volatile. We think the
market's recent sell-off will cause sentiment to shift toward value stocks from
the unprecedented six-year emphasis on growth stocks. In light of that, we have
structured the Fund's assets to tilt slightly toward value stocks, with
defensive weightings in certain industries, such as utilities. Further, we have
added more "old economy" stocks, such as Dover Corp., a manufacturer of
machinery and equipment and Kerr-McGee Corp., which is involved in oil
exploration. While these companies are less glamorous than some of the high-
flying "new economy" stocks, we think they are undervalued and with their sound
fundamentals and attractive valuations could help produce strong performance as
investors review their assumptions about current prices and future returns.
32
<PAGE>
EVERGREEN
Strategic Growth Fund
Fund at a Glance as of March 31, 2000
"We have placed the greatest emphasis on a core of solid, established technology
companies with seasoned management, products and services that enhance
productivity."
Portfolio
Management
--------------
[PHOTO]
Maureen E.Cullinane, CFA
Tenure: April 1995
--------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
--------------------------------------------------------------------------------
[STYLE BOX]
Morningstar's Style Box is based on a portfolio date as of 3/31/2000.
The Equity Style Box placement is based on a fund's price-to-earnings and
price-to-book ratio relative to the S&P 500, as well as the size of the
companies in which it invests, or median market capitalization.
/1/ Source: 2000 Morningstar, Inc.
/2/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
Historical performance shown for Classes A, C and Y prior to their inception is
based on the performance of Class B, the original class offered. These
historical returns for Classes A and Y have been adjusted to eliminate the
effect of the higher 12b-1 fees applicable to Class B. These fees are 0.25% for
Class A and 1.00% for Classes B and C. Class Y does not pay a 12b-1 fee. If
these fees had not been eliminated, returns would have been lower.
All data is as of 3/31/2000 and subject to change.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Portfolio Inception Date: 9/11/1935 Class A Class B Class C Class Y
Class Inception Date 1/20/1998 9/11/1935 1/22/1998 6/30/1999
<S> <C> <C> <C> <C>
Average Annual Returns*
6 months with sales charge 39.28% 40.57% 43.77% n/a
6 months w/o sales charge 46.22% 45.57% 45.77% 46.34%
1 year with sales charge 39.88% 40.71% 43.90% n/a
1 year w/o sales charge 46.89% 45.71% 45.90% 47.25%
3 years 35.14% 36.06% 36.43% 37.73%
5 years 28.47% 28.84% 28.81% 30.06%
10 years 19.69% 19.68% 19.32% 20.58%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
6-month capital gain distributions
per share $1.80 $1.80 $1.80 $1.80
</TABLE>
* Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
<TABLE>
<CAPTION>
Evergreen Strategic
Growth Fund Class B S&P 500 Index Russell 1000 Growth Consumer Price Index - US
<S> <C> <C> <C> <C>
3/31/90 10,000 10,000 10,000 10,000
3/31/91 11,381 11,441 12,216 10,490
3/31/92 13,258 12,705 13,899 10,824
3/31/93 14,785 14,639 15,224 11,158
3/31/94 16,404 14,855 15,102 11,437
3/31/95 16,880 17,168 17,762 11,764
3/31/96 21,115 22,679 23,442 12,098
3/31/97 23,639 27,175 27,539 12,432
3/31/98 34,971 40,218 41,159 12,603
3/31/99 41,340 47,648 52,728 12,821
3/31/00 60,243 56,194 70,714 13,219
</TABLE>
Comparison of a $10,000 investment in Evergreen Strategic Growth Fund Class B
shares/2/, versus a similar investment in the Russell 1000 Growth Index (Russell
1000 Growth), the Standard & Poor's 500 Index (S&P 500) and the Consumer Price
Index (CPI).
The Russell 1000 Growth and the S&P 500 are unmanaged market indices which do
not include transaction costs associated with buying and selling securities or
any mutual fund expenses. The CPI is a commonly used measure of inflation and
does not represent an investment return. It is not possible to invest directly
in an index.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
Foreign investments may contain more risk due to the inherent risks associated
with changing political climates, foreign market instability and foreign
currency fluctuations.
33
<PAGE>
EVERGREEN
Strategic Growth Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended March 31, 2000, Evergreen Strategic Growth Fund
Class B shares had a total return of 45.57%. During the same period, the Russell
1000 Growth and the S&P 500 returned 34.06% and 17.51%, respectively. The median
return of funds in the large-cap growth category was 34.75%, according to Lipper
Inc., an independent monitor of mutual fund performance. Fund returns are before
deduction of any applicable sales charges.
Portfolio
Characteristics
---------------
Total Net Assets $1,335,545,051
Number of Holdings 66
Beta 0.97
What was the environment like during the six-month period?
The period offered an excellent investment environment. The growth style of
investing outperformed the value style, and small and mid-cap stocks started to
move ahead of large-cap stocks. Reversing the trend of 1997 and 1998, active
managers or stock-pickers tended to outperform market indices. The U.S. economy
grew at a very brisk pace, but without evidence of inflation. While interest
rates rose during the period, productivity gains helped corporations enjoy
healthy earnings growth.
Technology provided the tools for these productivity gains, and technology
stocks were the dominant performers in the market. Stocks of internet
infrastructure companies, semi-conductor manufacturers and software developers
all did very well. However, while these new economy stocks surged, many old
economy stocks posted anemic results. Stocks in industries such as consumer
staples, capital goods and commodity-related companies lagged the markets.
Consumer goods companies such as Coca-Cola and Gillette, which traditionally
have depended on their ability to raise prices, found they had little pricing
power. Their stock prices suffered as their earnings growth rates lagged those
of technology companies, which thrived in a deinflationary environment
characterized by product innovation and volume growth rather than price
increases.
Top 5 Industries
----------------
(as a percentage of 3/31/2000 net assets)
Communications Equipment 13.9%
Semiconductor Equipment & Products 12.6%
Diversified Financials 8.8%
Pharmaceuticals 8.6%
Computers & Peripherals 8.4%
What factors contributed to the performance of the Fund?
We maintained a relatively heavy weighting in technology, at about 50% of net
assets. We also focused primarily on large-cap growth companies with consistent
earnings growth, although we also have the ability to invest in small and mid-
cap companies.
We focused on the long-term investment themes that have guided us: the "Aging
of America" and the "Growth in Productivity."
We needed to be selective in pursuing the "Aging of America" theme, even as
members of the large, baby boomer generation enter their 50s. Many healthcare
stocks did not perform well during the six months. However, we liked Schering
Plough, a major pharmaceutical company, as well as Shire Pharmaceuticals, a
company based in the United Kingdom that is devel-
34
<PAGE>
EVERGREEN
Strategic Growth Fund
Portfolio Manager Interview
oping drugs for the treatment of attention deficit disorder and Alzheimer's
disease.
Shire Pharmaceuticals is one of several foreign companies in which we invested.
Others included Mannesmann of Germany, which was acquired by Vodaphone, a U.K.
company, and Vivendi, a diversified French company involved in
telecommunication, multimedia and water utility operations.
We also increased our weighting in oil service stocks; we anticipate an
increased level of exploration and drilling activity in the wake of the near
doubling of energy prices over the past year.
What have you emphasized in technology?
The productivity theme is technology-based. Hardware, software and
telecommunications companies are helping American industry become more
efficient. We have placed the greatest emphasis on a core of solid, established
technology companies with seasoned management and products and services that
enhance productivity. The leading companies included Motorola and Nokia in
communications equipment, Cisco Systems in networking, EMC in data storage, and
Intel in semi-conductors.
Top 10 Holdings
---------------
(as a percentage of 3/31/2000 net assets)
Cisco Systems, Inc. 4.6%
Intel Corp. 4.4%
Pharmacia & Upjohn, Inc. 3.3%
Nokia Corp., ADR 3.3%
General Electric Co. 3.2%
EMC Corp. 3.2%
American Home Products Corp. 3.1%
Motorola, Inc. 2.8%
Microsoft Corp. 2.4%
International Business Machines Corp. 2.4%
What is your outlook?
We think economic growth will begin to slow during the second half of 2000 as a
result of the Federal Reserve Board's continued tightening of the money supply
through increases in short-term rates. With the exception of energy prices, we
think inflation should remain muted. Historically, bull markets typically have
been ended by recessions, and we see no signs of a recession. The year 2000 is a
presidential election year, which typically is good for the stock market.
Overall, we believe the economy should be healthy and the stock market should
continue to perform positively, although probably not as well as it did in the
past six months. Technology stocks that have risen at extraordinarily fast paces
may lose some of their gains, and price corrections may be particularly evident
in the technology-heavy NASDAQ Composite Index. In an environment in which day
traders seem to have been buying indiscriminately, some stocks may have come too
far, too fast. However, we may see benefit in the recent, sharp price
fluctuations and volatility in the market. Complacency has declined and
investors are being more careful about what they buy. Market volatility may
provide the opportunity to invest in consistent growth companies at more
reasonable prices.
35
<PAGE>
EVERGREEN
Tax Strategic Equity Fund
Fund at a Glance as of March 31, 2000
"We are more optimistic about the marketplace as a whole when we take a longer-
term view of the secular trends."
Portfolio
Management
--------------------------------------------------------------------------------
[PHOTO] [PHOTO]
Jean C. Ledford, Richard S. Welsh,
CFA Tenure: August 1999
Tenure: August 1999
/2/ Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. Performance includes the reinvestment of income
dividends and capital gains distributions.
Historical performance shown for Classes A, B and C prior to their inception is
based on the performance of Class Y, the original class offered. These
historical returns for Classes A, B, and C have not been adjusted to reflect the
effect of each Class' 12b-1 fees. These fees are 0.25% for Class A and 1.00% for
Classes B and C. Class Y does not pay a 12b-1 fee. If these fees had been
reflected, returns would have been lower.
--------------------------------------------------------------------------------
PERFORMANCE AND RETURNS/2/
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Portfolio Inception Date: 9/1/1998 Class A Class B Class C Class Y
Class Inception Date 9/4/1998 10/14/1998 11/4/1998 9/1/1998
<S> <C> <C> <C> <C>
Average Annual Returns*
6 months with sales charge 16.25% 16.52% 19.56% n/a
6 months w/o sales charge 22.06% 21.52% 21.56% 22.16%
1 year with sales charge 19.70% 19.78% 22.82% n/a
1 year w/o sales charge 25.68% 24.78% 24.82% 26.05%
Since Portfolio Inception 36.30% 37.65% 39.38% 41.10%
Maximum Sales Charge 4.75% 5.00% 2.00% n/a
Front End CDSC CDSC
</TABLE>
*Adjusted for maximum applicable sales charge.
--------------------------------------------------------------------------------
LONG TERM GROWTH
--------------------------------------------------------------------------------
[GRAPH]
Evergreen Tax Strat S&P 500 Consumer Price
Foundation A Composite Index - US
9/30/98 9,526 10,000 10,000
12/31/98 12,191 12,129 10,018
3/31/99 12,182 12,736 10,086
6/30/99 13,556 13,633 10,159
9/30/99 12,544 12,781 10,263
12/31/99 14,586 14,683 10,287
3/31/00 15,311 15,020 10,399
Comparison of a $10,000 investment in Evergreen Tax Strategic Equity Fund Class
A shares/2/, versus a similar investment in the Standard & Poor's 500 Index (S&P
500) and the Consumer Price Index (CPI).
The S&P 500 is an unmanaged market index which does not include transaction
costs associated with buying and selling securities or any mutual fund expenses.
The CPI is a commonly used measure of inflation and does not represent an
investment return. It is not possible to invest directly in an index.
The Fund's investment objective is non-fundamental and may be changed without
the vote of the Fund's shareholders.
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.
All data is as of 3/31/2000 and subject to change.
36
<PAGE>
EVERGREEN
Tax Strategic Equity Fund
Portfolio Manager Interview
How did the Fund perform?
For the six-month period ended March 31, 2000, Evergreen Tax Strategic Equity
Fund Class A shares had a total return of 22.06%. During the same period, the
S&P 500 returned 17.51%, while the median return of multi-cap core funds 20.88%,
according to Lipper Inc., an independent monitor of mutual fund performance.
Fund returns are before deduction of any applicable sales charges.
Portfolio
Characteristics
---------------
Total Net Assets $28,323,604
Number of Holdings 108
What factors contributed to the performance?
Evergreen Tax Strategic Equity Fund was in a transition during the period.
Before the period began, the portfolio had a heavy weighting in financial stocks
and a relatively low weighting in technology. We found companies in the
technology sector with the opportunity to increase their earnings growth rates.
We have avoided too much emphasis on cyclical trends that may not have long-term
staying power.
Consistent with our investment emphasis on large-cap companies, the great
majority of our technology investments were in larger companies, especially
leading companies involved in the explosive growth of the internet and
electronic commerce. Some of the best performance came from companies such as
Oracle Systems and Sun Microsystems.
Oracle Systems, a relatively new holding, is a leading beneficiary of the rise
of the internet as a medium for commerce. Already the top seller of database
services to other companies, Oracle Systems is taking advantage of the expansion
of business-to-business exchanges of information. Oracle Systems is uniquely
positioned to help companies set up common platforms for information exchanges
and then to operate these platforms.
Sun Microsystems is the largest high-end provider of database and communications
servers for use on the internet. As data processing on the internet grows more
widespread, Sun Microsystems' sophisticated platforms give it a competitive
advantage.
Top 5 Industries
----------------
(as a percentage of 3/31/2000 net assets)
Communications Equipment 10.8%
Diversified Financials 9.9%
Diversified Telecommunications Services 7.6%
Computers & Peripherals 7.4%
Software 7.3%
37
<PAGE>
EVERGREEN
Tax Strategic Equity Fund
Portfolio Manager Interview
Outside of technology, what industries did you emphasize?
We cautiously raised our emphasis in energy stocks, which had been under-
weighted, as we grew increasingly positive about the sector, including
integrated energy companies and oil services firms. Even after oil prices peaked
in March at $34 a barrel and then started declining, we added to our positions
because we believed earnings should continue to accelerate. We invested in
integrated companies because of the strength of their diversification. As their
profit margins from refining grew, they had the ability to re-invest proceeds in
exploration and production.
The recovery in the oil markets helped oil services companies, including those
involved in exploration such as Baker Hughes. Baker Hughes presented us with an
opportunity to benefit from the expansion of oil exploration and drilling at an
attractive price. An earnings disappointment and a change in management at Baker
Hughes presented us with the opportunity to invest at a very attractive stock
price. At the same time, our analysis gave us confidence that the company had
the ability to increase its earnings substantially. We also invested in
Schlumberger, the bellwether of the oil services industry.
Top 10 Holdings
---------------
(as a percentage of 3/31/2000 net assets)
General Electric Co. 5.0%
Meade Instruments Corp. 4.9%
Microsoft Corp. 4.8%
Intel Corp. 4.5%
Cisco Systems, Inc. 4.2%
Global Crossing, Ltd. 3.3%
Exxon Mobile Corp. 2.8%
Nextel Communications, Inc. 2.6%
International Business Machines Corp. 2.5%
Oracle Systems Corp. 2.4%
38
<PAGE>
EVERGREEN
Tax Strategic Equity Fund
What is your outlook?
We are generally positive in our outlook on the marketplace. Corporate earnings
growth remains strong, and stock prices should follow earnings.
Having said that, there are several places in the marketplace, notably
technology and biotechnology, where stock valuations have become quite
stretched. These high prices are particularly a concern in the context of rising
interest rates and the release of new government statistics indicating a
possible increase in inflationary pressures. Investors have been watching for
signs of inflation. While not conclusive evidence of a serious inflation threat,
these new statistics nevertheless are enough to remove any complacency in the
market about the lack of inflation. As a result, we would expect a significant
amount of volatility, particularly in technology, as corporations report their
earnings results for the first quarter of 2000.
We are more optimistic about the marketplace as a whole when we take a longer-
term view of the secular trends. We believe that the baby boomer generation will
need to save for retirement, and that should be positive for the capital
markets.
39
<PAGE>
EVERGREEN
Aggressive Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # ------------------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 1995 (a)(b)
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 25.87 $ 21.26 $ 23.48 $ 21.04 $ 17.37 $ 13.85
-------- -------- -------- -------- ------- -------
Income from investment
operations
Net investment loss (0.12) (0.22) (0.25) (0.21) (0.15) (0.16)
Net realized and
unrealized gains or
losses on securities 15.93 7.46 (1.12) 2.65 4.46 3.68
-------- -------- -------- -------- ------- -------
Total from investment
operations 15.81 7.24 (1.37) 2.44 4.31 3.52
-------- -------- -------- -------- ------- -------
Distributions to
shareholders from
Net realized gains (3.27) (2.63) (0.85) 0 (0.64) 0
-------- -------- -------- -------- ------- -------
Total distributions to
shareholders (3.27) (2.63) (0.85) 0 (0.64) 0
-------- -------- -------- -------- ------- -------
Net asset value, end of
period $ 38.41 $ 25.87 $ 21.26 $ 23.48 $ 21.04 $ 17.37
-------- -------- -------- -------- ------- -------
Total return* 65.93% 36.92% (5.93%) 11.60% 25.62% 25.42%
Ratios and supplemental
data
Net assets, end of
period (thousands) $279,740 $166,524 $137,776 $173,982 $96,608 $70,858
Ratios to average net
assets
Expenses** 1.12%+ 1.18% 1.33% 1.26% 1.22% 1.47%+
Net investment loss (0.77%)+ (0.92%) (1.14%) (1.05%) (0.86%) (1.12%)+
Portfolio turnover rate 105% 86% 22% 56% 33% 31%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # ------------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 1995 (c)
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 25.04 $ 20.78 $ 23.18 $ 20.89 $ 17.35 $15.82
-------- ------- ------- ------- ------- ------
Income from investment
operations
Net investment loss (0.24) (0.40) (0.41) (0.37) (0.16) (0.03)
Net realized and
unrealized gains or
losses on securities 15.37 7.29 (1.14) 2.66 4.34 1.56
-------- ------- ------- ------- ------- ------
Total from investment
operations 15.13 6.89 (1.55) 2.29 4.18 1.53
-------- ------- ------- ------- ------- ------
Distributions to
shareholders from
Net realized gains (3.27) (2.63) (0.85) 0 (0.64) 0
-------- ------- ------- ------- ------- ------
Total distributions to
shareholders (3.27) (2.63) (0.85) 0 (0.64) 0
-------- ------- ------- ------- ------- ------
Net asset value, end of
period $ 36.90 $ 25.04 $ 20.78 $ 23.18 $ 20.89 $17.35
-------- ------- ------- ------- ------- ------
Total return* 65.35% 36.00% (6.82%) 10.96% 24.88% 9.67%
Ratios and supplemental
data
Net assets, end of
period (thousands) $109,539 $56,466 $36,301 $41,167 $21,644 $2,858
Ratios to average net
assets
Expenses** 1.87%+ 1.93% 2.08% 2.02% 1.98% 2.09%+
Net investment loss (1.52%)+ (1.67%) (1.88%) (1.80%) (1.60%) (1.71%)+
Portfolio turnover rate 105% 86% 22% 56% 33% 31%
</TABLE>
(a) Effective June 30, 1995, Evergreen Aggressive Growth Fund, a new series of
Evergreen Equity Trust, acquired substantially all of the net assets of ABT
Emerging Growth Fund. ABT Emerging Growth Fund, which had a fiscal year
that ended on October 31 was the accounting survivor in the combination.
Accordingly, the information above includes the result of operations of ABT
Emerging Growth Fund prior to June 30, 1995.
(b) For the eleven months ended September 30, 1995. The Fund changed its fiscal
year end from October 31 to September 30, effective September 30, 1995.
(c) For the period from July 7, 1995 (commencement of class operations) to
September 30, 1995.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment loss is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
40
<PAGE>
EVERGREEN
Aggressive Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # --------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 1995 (a)
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
Net asset value,
beginning of period $ 24.98 $20.75 $23.16 $20.88 $17.31 $16.42
------- ------ ------ ------ ------ ------
Income from investment
operations
Net investment loss (0.24) (0.39) (0.41) (0.36) (0.15) (0.01)
Net realized and
unrealized gains or
losses on securities 15.32 7.25 (1.15) 2.64 4.36 0.90
------- ------ ------ ------ ------ ------
Total from investment
operations 15.08 6.86 (1.56) 2.28 4.21 0.89
------- ------ ------ ------ ------ ------
Distributions to
shareholders from
Net realized gains (3.27) (2.63) (0.85) 0 (0.64) 0
------- ------ ------ ------ ------ ------
Total distributions to
shareholders (3.27) (2.63) (0.85) 0 (0.64) 0
------- ------ ------ ------ ------ ------
Net asset value, end of
period $ 36.79 $24.98 $20.75 $23.16 $20.88 $17.31
------- ------ ------ ------ ------ ------
Total return* 65.30% 35.90% (6.87%) 10.92% 25.11% 5.42%
Ratios and supplemental
data
Net assets, end of
period (thousands) $10,885 $4,685 $2,570 $3,992 $ 991 $ 416
Ratios to average net
assets
Expenses** 1.86%+ 1.92% 2.08% 2.02% 1.96% 2.09%+
Net investment loss (1.51%)+ (1.67%) (1.88%) (1.80%) (1.57%) (1.51%)+
Portfolio turnover rate 105% 86% 22% 56% 33% 31%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # ------------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 1995 (b)
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $ 26.23 $ 21.46 $ 23.57 $ 21.09 $ 17.38 $15.79
------- ------- ------- ------- ------- ------
Income from investment
operations
Net investment loss (0.08) (0.17) (0.20) (0.17) (0.06) (0.01)
Net realized and
unrealized gains or
losses on securities 16.20 7.57 (1.06) 2.65 4.41 1.60
------- ------- ------- ------- ------- ------
Total from investment
operations 16.12 7.40 (1.26) 2.48 4.35 1.59
------- ------- ------- ------- ------- ------
Distributions to
shareholders from
Net realized gains (3.27) (2.63) (0.85) 0 (0.64) 0
------- ------- ------- ------- ------- ------
Total distributions to
shareholders (3.27) (2.63) (0.85) 0 (0.64) 0
------- ------- ------- ------- ------- ------
Net asset value, end of
period $ 39.08 $ 26.23 $ 21.46 $ 23.57 $ 21.09 $17.38
------- ------- ------- ------- ------- ------
Total return 66.23% 37.36% (5.43%) 11.76% 25.84% 10.07%
Ratios and supplemental
data
Net assets, end of
period (thousands) $46,885 $28,867 $28,314 $44,384 $25,918 $1,889
Ratios to average net
assets
Expenses** 0.87%+ 0.93% 1.08% 1.01% 0.97% 1.08%+
Net investment loss (0.52%)+ (0.67%) (0.89%) (0.78%) (0.60%) (0.71%)+
Portfolio turnover rate 105% 86% 22% 56% 33% 31%
</TABLE>
(a) For the period from August 3, 1995 (commencement of class operations) to
September 30, 1995.
(b) For the period from July 11, 1995 (commencement of class operations) to
September 30, 1995.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment loss is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
41
<PAGE>
EVERGREEN
Capital Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # ----------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES (a)
Net asset value,
beginning of period $ 24.38 $ 22.71 $ 22.42 $ 19.36 $ 16.02 $ 14.88
-------- -------- -------- ------- ------- -------
Income from investment
operations
Net investment income
(loss) (0.03) (0.05) (0.10) (0.02) 0.11 0.02
Net realized and
unrealized gains on
securities 1.25 4.27 2.34 5.87 3.73 2.91
-------- -------- -------- ------- ------- -------
Total from investment
operations 1.22 4.22 2.24 5.85 3.84 2.93
-------- -------- -------- ------- ------- -------
Distributions to
shareholders from
Net investment income 0 0 (0.01) 0 0 0
Net realized gains (0.51) (2.55) (1.94) (2.79) (0.50) (1.79)
-------- -------- -------- ------- ------- -------
Total distributions to
shareholders (0.51) (2.55) (1.95) (2.79) (0.50) (1.79)
-------- -------- -------- ------- ------- -------
Net asset value, end of
period $ 25.09 $ 24.38 $ 22.71 $ 22.42 $ 19.36 $ 16.02
-------- -------- -------- ------- ------- -------
Total return* 5.01% 20.21% 10.72% 34.78% 24.63% 20.18%
Ratios and supplemental
data
Net assets, end of
period (thousands) $218,855 $285,690 $145,117 $65,703 $31,889 $29,852
Ratios to average net
assets
Expenses** 1.68%+ 1.39% 1.34% 1.41% 1.43% 1.87%
Net investment income
(loss) (0.25%)+ (0.21%) 0.06% 0.53% 0.51% 0.27%
Portfolio turnover rate 42% 82% 104% 64% 98% 157%
</TABLE>
<TABLE>
<CAPTION>
Period Ended
March 31, 2000 # (b)
(Unaudited)
<S> <C>
CLASS B SHARES (a)
Net asset value, beginning of period $24.29
------
Income from investment operations
Net investment loss (0.11)
------
Net realized and unrealized gains on securities 1.35
------
Total from investment operations 1.24
Distributions to shareholders from
Net realized gains (0.51)
------
Total distributions to shareholders (0.51)
------
Net asset value, end of period $25.02
------
Total return* 15.01%
Ratios and supplemental data
Net assets, end of period (thousands) $3,423
Ratios to average net assets
Expenses** 2.58%+
Net investment loss (0.97%)+
Portfolio turnover rate 42%
</TABLE>
(a) Effective October 18, 1999, shareholders of Mentor Capital Growth Portfolio
Class A, Class B and Class Y shares became owners of that number of full
and fractional shares of Class A, Class C and Class Y, respectively, of
Evergreen Capital Growth Fund. In addition, Class B shares of Mentor Capital
Growth Portfolio were redesignated as Class C shares of Evergreen Capital
Growth Fund.
(b) For the period from October 25, 1999 (commencement of class operations) to
March 31, 2000.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
42
<PAGE>
EVERGREEN
Capital Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # --------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES (a)
Net asset value,
beginning of period $ 22.97 $ 21.72 $ 21.68 $ 18.92 $ 15.79 $ 14.80
-------- -------- -------- -------- ------- -------
Income from investment
operations
Net investment income
(loss) (0.12) (0.22) (0.08) 0 (0.04) 0.25
Net realized and
unrealized gains on
securities 1.19 4.02 2.07 5.55 3.67 2.53
-------- -------- -------- -------- ------- -------
Total from investment
operations 1.07 3.80 1.99 5.55 3.63 2.78
-------- -------- -------- -------- ------- -------
Distributions to
shareholders from
Net investment income 0 0 (0.01) 0 0 0
Net realized gains (0.51) (2.55) (1.94) (2.79) (0.50) (1.79)
-------- -------- -------- -------- ------- -------
Total distributions to
shareholders (0.51) (2.55) (1.95) (2.79) (0.50) (1.79)
-------- -------- -------- -------- ------- -------
Net asset value, end of
period $ 23.53 $ 22.97 $ 21.72 $ 21.68 $ 18.92 $ 15.79
-------- -------- -------- -------- ------- -------
Total return* 4.66% 19.08% 9.86% 33.88% 23.64% 19.26%
Ratios and supplemental
data
Net assets, end of
period (thousands) $214,688 $253,281 $196,751 $113,587 $68,213 $57,648
Ratios to average net
assets
Expenses** 2.43%+ 2.14% 2.09% 2.16% 2.18% 2.56%
Net investment loss (1.00%)+ (0.96%) (0.70%) (0.22%) (0.24%) (0.41%)
Portfolio turnover rate 42% 82% 104% 64% 98% 157%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # ----------------------------
(Unaudited) 1999 1998 (b)
<S> <C> <C> <C>
CLASS Y SHARES (a)
Net asset value, beginning of
period $24.50 $ 22.74 $ 20.81
------ ------------ ------------
Income from investment
operations
Net investment income 0 0 0.02
Net realized and unrealized
gains on securities 1.26 4.31 2.16
------ ------------ ------------
Total from investment
operations 1.26 4.31 2.18
------ ------------ ------------
Distributions to shareholders
from
Net realized gains (0.51) (2.55) (0.25)
------ ------------ ------------
Total distributions to
shareholders (0.51) (2.55) (0.25)
------ ------------ ------------
Net asset value, end of period $25.25 $ 24.50 $ 22.74
------ ------------ ------------
Total return 5.19% 20.57% 10.56%
Ratios and supplemental data
Net assets, end of period
(thousands) $ 9 $ 1 $ 1
Ratios to average net assets
Expenses** 1.57%+ 1.13% 1.09%+
Net investment income 0.01%+ 0.08% 0.38%+
Portfolio turnover rate 42% 82% 104%
</TABLE>
(a) Effective October 18, 1999, shareholders of Mentor Capital Growth Portfolio
Class A, Class B and Class Y shares became owners of that number of full
and fractional shares of Class A, Class C and Class Y, respectively, of
Evergreen Capital Growth Fund. In addition, Class B shares of Mentor Capital
Growth Portfolio were redesignated as Class C shares of Evergreen Capital
Growth Fund.
(b) For the period from November 19, 1997 (commencement of class operations) to
September 30, 1998.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
43
<PAGE>
EVERGREEN
Evergreen Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # --------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 1995 (a)
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $24.24 $21.11 $22.96 $17.64 $15.55 $11.97
------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment income
(loss) (0.07) 0.02 0.06 0.11 0.12 0.01
Net realized and
unrealized gains or
losses on securities 4.58 3.22 (1.31) 5.71 2.61 3.57
------ ------ ------ ------ ------ ------
Total from investment
operations 4.51 3.24 (1.25) 5.82 2.73 3.58
------ ------ ------ ------ ------ ------
Distributions to
shareholders from
Net investment income 0 (0.04) (0.10) (0.09) (0.06) 0
Net realized gains (1.08) (0.07) (0.50) (0.41) (0.58) 0
------ ------ ------ ------ ------ ------
Total distributions to
shareholders (1.08) (0.11) (0.60) (0.50) (0.64) 0
------ ------ ------ ------ ------ ------
Net asset value, end of
period $27.67 $24.24 $21.11 $22.96 $17.64 $15.55
------ ------ ------ ------ ------ ------
Total return* 18.86% 15.34% (5.59%) 33.72% 18.07% 29.91%
Ratios and supplemental
data
Net assets, end of
period (millions) $ 197 $ 180 $ 183 $ 161 $ 87 $ 29
Ratios to average net
assets
Expenses** 1.40%+ 1.39% 1.44% 1.40% 1.45% 1.70%+
Net investment income
(loss) (0.50%)+ 0.06% 0.24% 0.58% 0.63% 0.13%+
Portfolio turnover rate 74% 35% 7% 12% 15% 19%
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # --------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 1995 (a)
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $23.80 $20.82 $22.69 $17.49 $15.48 $11.97
------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment loss (0.16) (0.17) (0.12) (0.03) (0.03) (0.02)
Net realized and
unrealized gains or
losses on securities 4.47 3.22 (1.25) 5.64 2.64 3.53
------ ------ ------ ------ ------ ------
Total from investment
operations 4.31 3.05 (1.37) 5.61 2.61 3.51
------ ------ ------ ------ ------ ------
Distributions to
shareholders from
Net investment income 0 0 0 0 (0.02) 0
Net realized gains (1.08) (0.07) (0.50) (0.41) (0.58) 0
------ ------ ------ ------ ------ ------
Total distributions to
shareholders (1.08) (0.07) (0.50) (0.41) (0.60) 0
------ ------ ------ ------ ------ ------
Net asset value, end of
period $27.03 $23.80 $20.82 $22.69 $17.49 $15.48
------ ------ ------ ------ ------ ------
Total return* 18.36% 14.65% (6.18%) 32.69% 17.29% 29.32%
Ratios and supplemental
data
Net assets, end of
period (millions) $ 671 $ 646 $ 624 $ 503 $ 254 $ 74
Ratios to average net
assets
Expenses** 2.15%+ 2.14% 2.19% 2.15% 2.18% 2.32%+
Net investment loss (1.24%)+ (0.70%) (0.50%) (0.16%) (0.10%) (0.48%)+
Portfolio turnover rate 74% 35% 7% 12% 15% 19%
</TABLE>
(a) For the period from January 3, 1995 (commencement of class operations) to
September 30, 1995.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
44
<PAGE>
EVERGREEN
Evergreen Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # --------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 1995 (a)
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
Net asset value,
beginning of period $23.77 $20.79 $22.66 $17.47 $15.48 $11.97
------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment income
(loss) (0.16) (0.16) (0.11) (0.04) 0 (0.01)
Net realized and
unrealized gains or
losses on securities 4.47 3.21 (1.26) 5.64 2.61 3.52
------ ------ ------ ------ ------ ------
Total from investment
operations 4.31 3.05 (1.37) 5.60 2.61 3.51
------ ------ ------ ------ ------ ------
Distributions to
shareholders from
Net investment income 0 0 0 0 (0.04) 0
Net realized gains (1.08) (0.07) (0.50) (0.41) (0.58) 0
------ ------ ------ ------ ------ ------
Total distributions to
shareholders (1.08) (0.07) (0.50) (0.41) (0.62) 0
------ ------ ------ ------ ------ ------
Net asset value, end of
period $27.00 $23.77 $20.79 $22.66 $17.47 $15.48
------ ------ ------ ------ ------ ------
Total return* 18.38% 14.67% (6.19%) 32.67% 17.29% 29.32%
Ratios and supplemental
data
Net assets, end of
period (millions) $ 15 $ 14 $ 13 $ 9 $ 6 $ 2
Ratios to average net
assets
Expenses** 2.15%+ 2.14% 2.19% 2.16% 2.14% 2.12%+
Net investment income (1.24%)+ (0.70%) (0.50%) (0.18%) (0.07%) (0.31%)+
Portfolio turnover rate 74% 35% 7% 12% 15% 19%
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # --------------------------------------------
(Unaudited) 1999 # 1998 # 1997 # 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $24.48 $21.25 $23.07 $17.71 $15.59 $14.62
------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment income
(loss) (0.03) 0.07 0.12 0.16 0.24 0.10
Net realized and
unrealized gains or
losses on securities 4.61 3.28 (1.30) 5.73 2.55 3.10
------ ------ ------ ------ ------ ------
Total from investment
operations 4.58 3.35 (1.18) 5.89 2.79 3.20
------ ------ ------ ------ ------ ------
Distributions to
shareholders from
Net investment income 0 (0.05) (0.14) (0.12) (0.09) (0.07)
Net realized gains (1.08) (0.07) (0.50) (0.41) (0.58) (2.16)
------ ------ ------ ------ ------ ------
Total distributions to
shareholders (1.08) (0.12) (0.64) (0.53) (0.67) (2.23)
------ ------ ------ ------ ------ ------
Net asset value, end of
period $27.98 $24.48 $21.25 $23.07 $17.71 $15.59
------ ------ ------ ------ ------ ------
Total return 18.97% 15.79% (5.25%) 34.08% 18.43% 26.79%
Ratios and supplemental
data
Net assets, end of
period (millions) $1,174 $1,086 $1,028 $1,104 $ 841 $ 612
Ratios to average net
assets
Expenses** 1.14%+ 1.14% 1.18% 1.15% 1.15% 1.16%
Interest expense N/A N/A N/A N/A N/A 0.06%
Net investment income
(loss) (0.24%)+ 0.30% 0.49% 0.80% 0.93% 0.53%
Portfolio turnover rate 74% 35% 7% 12% 15% 19%
</TABLE>
(a) For the period from January 3, 1995 (commencement of class operations) to
September 30, 1995.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
45
<PAGE>
EVERGREEN
Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # -------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995 (a)
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES (b)
Net asset value,
beginning of period $ 15.99 $ 14.60 $ 19.94 $ 18.47 $ 16.08 $ 13.37
-------- ------- ------- -------- ------- -------
Income from investment
operations
Net investment loss (0.09) (0.12) (0.12) (0.17) (0.10) (0.01)
Net realized and
unrealized gains or
losses on securities 8.95 2.07 (4.03) 4.19 4.23 2.72
-------- ------- ------- -------- ------- -------
Total from investment
operations 8.86 1.95 (4.15) 4.02 4.13 2.71
-------- ------- ------- -------- ------- -------
Distributions to
shareholders from
Net realized gains (0.87) (0.56) (1.19) (2.55) (1.74) 0
-------- ------- ------- -------- ------- -------
Total distributions to
shareholders (0.87) (0.56) (1.19) (2.55) (1.74) 0
-------- ------- ------- -------- ------- -------
Net asset value, end of
period $ 23.98 $ 15.99 $ 14.60 $ 19.94 $ 18.47 $ 16.08
-------- ------- ------- -------- ------- -------
Total return* 57.59% 13.90% (22.08%) 25.81% 29.15% 20.27%
Ratios and supplemental
data
Net assets, end of
period (thousands) $113,290 $92,229 $77,720 $105,033 $40,272 $20,368
Ratios to average net
assets
Expenses** 1.52%+ 1.30% 1.26% 1.28% 1.28% 1.36%+
Net investment loss (0.96%)+ (0.71%) (0.56%) (0.67%) (0.39%) (0.65%)+
Portfolio turnover rate 82% 108% 88% 77% 105% 70%
</TABLE>
<TABLE>
<CAPTION>
Period Ended
March 31, 2000 # (c)
(Unaudited)
<S> <C>
CLASS B SHARES (b)
Net asset value, beginning of period $14.62
------
Income from investment operations
Net investment loss (0.22)
Net realized and unrealized gains on securities 9.44
------
Total from investment operations 9.22
------
Distributions to shareholders from
Net realized gains (0.87)
------
Total distributions to shareholders (0.87)
------
Net asset value, end of period $22.97
------
Total return* 14.89%
Ratios and supplemental data
Net assets, end of period (thousands) $2,163
Ratios to average net assets
Expenses** 2.60%+
Net investment loss (1.93%)+
Portfolio turnover rate 82%
</TABLE>
(a) For the period from June 5, 1995 (commencement of class operations) to
September 30, 1995.
(b) Effective October 18, 1999, shareholders of Mentor Growth Portfolio Class
A, Class B and Class Y shares became owners of that number of full and
fractional shares of Class A, Class C and Class Y, respectively, of
Evergreen Growth Fund. In addition, Class B shares of Mentor Growth
Portfolio were redesignated as Class C shares of Evergreen Growth Fund.
(c) For the period from October 18, 1999 (commencement of class operations) to
March 31, 2000.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment loss is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
46
<PAGE>
EVERGREEN
Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # ----------------------------------------------------
(Unaudited) 1999 1998 1997 1996 1995 (b)
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES (a)
Net asset value,
beginning of period $ 15.39 $ 14.18 $ 19.53 $ 18.29 $ 16.05 $ 12.15
-------- -------- -------- -------- -------- --------
Income from investment
operations
Net investment loss (0.16) (0.25) (0.23) (0.22) (0.17) (0.13)
Net realized and
unrealized gains or
losses on securities 8.59 2.02 (3.93) 4.01 4.15 4.03
-------- -------- -------- -------- -------- --------
Total from investment
operations 8.43 1.77 (4.16) 3.79 3.98 3.90
-------- -------- -------- -------- -------- --------
Distributions to
shareholders from
Net realized gains (0.87) (0.56) (1.19) (2.55) (1.74) 0
-------- -------- -------- -------- -------- --------
Total distributions to
shareholders (0.87) (0.56) (1.19) (2.55) (1.74) 0
-------- -------- -------- -------- -------- --------
Net asset value, end of
period $ 22.95 $ 15.39 $ 14.18 $ 19.53 $ 18.29 $ 16.05
-------- -------- -------- -------- -------- --------
Total return* 57.02% 13.01% (22.62%) 24.66% 28.18% 32.10%
Ratios and supplemental
data
Net assets, end of
period (thousands) $443,829 $334,484 $383,188 $506,230 $371,578 $246,326
Ratios to average net
assets
Expenses** 2.28%+ 2.05% 2.01% 2.03% 2.03% 2.08%+
Net investment loss (1.72%)+ (1.45%) (1.30%) (1.42%) (1.13%) (1.20%)+
Portfolio turnover rate 82% 108% 88% 77% 105% 70%
</TABLE>
<TABLE>
<CAPTION>
Year Ended
Period Ended September 30,
March 31, 2000 # -----------------
(Unaudited) 1999 1998 (c)
<S> <C> <C> <C>
CLASS Y SHARES (a)
Net asset value, beginning of period $ 16.05 $ 14.63 $ 18.12
------- ------- -------
Income from investment operations
Net investment loss (0.08) (0.07) (0.02)
Net realized and unrealized gains or
losses on securities 9.02 2.05 (3.28)
------- ------- -------
Total from investment operations 8.94 1.98 (3.30)
------- ------- -------
Distributions to shareholders from
Net realized gains (0.87) (0.56) (0.19)
------- ------- -------
Total distributions to shareholders (0.87) (0.56) (0.19)
------- ------- -------
Net asset value, end of period $ 24.12 $ 16.05 $ 14.63
------- ------- -------
Total return 57.88% 14.08% 18.36%
Ratios and supplemental data
Net assets, end of period (thousands) $87,229 $35,427 $25,353
Ratios to average net assets
Expenses* 1.33%+ 1.05% 1.01%+
Net investment loss (0.79%)+ (0.47%) (0.04%)+
Portfolio turnover rate 82% 108% 88%
</TABLE>
(a) Effective October 18, 1999, shareholders of Mentor Growth Portfolio Class A,
Class B and Class Y shares became owners of that number of full and
fractional shares of Class A, Class C and Class Y, respectively, of
Evergreen Growth Fund. In addition, Class B shares of Mentor Growth
Portfolio were redesignated as Class C shares of Evergreen Growth Fund.
(b) For the nine months ended September 30, 1995. The Fund changed its fiscal
year end from December 31 to September 30, effective September 30, 1995.
(c) For the period from November 19, 1997 (commencement of class operations) to
September 30, 1998.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment loss is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
47
<PAGE>
EVERGREEN
Masters Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
March 31, 2000 # Period Ended
(Unaudited) September 30, 1999 (a)
<S> <C> <C>
CLASS A SHARES
Net asset value, beginning of period $10.05 $10.00
------ ------
Income from investment operations
Net investment loss (0.03) (0.05)
Net realized and unrealized gains on
securities 3.24 0.10
------ ------
Total from investment operations 3.21 0.05
------ ------
Net asset value, end of period $13.26 $10.05
------ ------
Total return* 31.94% 0.50%
Ratios and supplemental data
Net assets, end of period (millions) $ 199 $ 168
Ratios to average net assets
Expenses** 1.68%+ 1.72%+
Net investment loss (0.83%)+ (0.70%)+
Portfolio turnover rate 59% 63%
<CAPTION>
Six Months Ended
March 31, 2000 # Period Ended
(Unaudited) September 30, 1999 (a)
<S> <C> <C>
CLASS B SHARES
Net asset value, beginning of period $10.01 $10.00
------ ------
Income from investment operations
Net investment loss (0.12) (0.09)
Net realized and unrealized gains on
securities 3.27 0.10
------ ------
Total from investment operations 3.15 0.01
------ ------
Net asset value, end of period $13.16 $10.01
------ ------
Total return* 31.47% 0.10%
Ratios and supplemental data
Net assets, end of period (millions) $ 116 $ 83
Ratios to average net assets
Expenses** 2.42%+ 2.47%+
Net investment loss (1.57%)+ (1.48%)+
Portfolio turnover rate 59% 63%
</TABLE>
(a) For the period from December 31, 1998 (commencement of class operations) to
September 30, 1999.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment loss is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
48
<PAGE>
EVERGREEN
Masters Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
March 31, 2000 # Period Ended
(Unaudited) September 30, 1999 (a)
<S> <C> <C>
CLASS C SHARES
Net asset value, beginning of period $10.00 $10.00
------ ------
Income from investment operations
Net investment loss (0.11) (0.09)
Net realized and unrealized gains on
securities 3.25 0.09
------ ------
Total from investment operations 3.14 0
------ ------
Net asset value, end of period $13.14 $10.00
------ ------
Total return* 31.40% 0.00%
Ratios and supplemental data
Net assets, end of period (millions) $ 7 $ 5
Ratios to average net assets
Expenses** 2.41%+ 2.47%+
Net investment loss (1.57%)+ (1.48%)+
Portfolio turnover rate 59% 63%
<CAPTION>
Six Months Ended
March 31, 2000 # Period Ended
(Unaudited) September 30, 1999 (a)
<S> <C> <C>
CLASS Y SHARES
Net asset value, beginning of period $10.07 $10.00
------ ------
Income from investment operations
Net investment loss (0.02) (0.01)
Net realized and unrealized gains on
securities 3.25 0.08
------ ------
Total from investment operations 3.23 0.07
------ ------
Net asset value, end of period $13.30 $10.07
------ ------
Total return 32.08% 0.70%
Ratios and supplemental data
Net assets, end of period (millions) $ 4 $ 3
Ratios to average net assets
Expenses** 1.42%+ 1.50%+
Net investment loss (0.57%)+ (0.43%)+
Portfolio turnover rate 59% 63%
</TABLE>
(a) For the period from December 31, 1998 (commencement of class operations) to
September 30, 1999.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment loss is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
49
<PAGE>
EVERGREEN
Omega Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended
Six Months Ended Year Ended September 30, December 31,
March 31, 2000 # ------------------------------- -------------------
(Unaudited) 1999 # 1998 # 1997 (a)# 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 26.82 $ 21.50 $ 22.69 $ 19.52 $ 19.56 $ 15.54
-------- -------- -------- -------- -------- --------
Income from investment
operations
Net investment income
(loss) (0.09) (0.17) (0.09) (0.03) (0.06) 0
Net realized and
unrealized gains on
securities 14.75 8.10 1.03 4.05 2.15 5.58
-------- -------- -------- -------- -------- --------
Total from investment
operations 14.66 7.93 0.94 4.02 2.09 5.58
-------- -------- -------- -------- -------- --------
Distributions to
shareholders from
Net realized gains (0.99) (2.61) (2.13) (0.85) (2.13) (1.56)
-------- -------- -------- -------- -------- --------
Total distributions to
shareholders (0.99) (2.61) (2.13) (0.85) (2.13) (1.56)
-------- -------- -------- -------- -------- --------
Net asset value, end of
period $ 40.49 $ 26.82 $ 21.50 $ 22.69 $ 19.52 $ 19.56
-------- -------- -------- -------- -------- --------
Total return* 55.83% 39.56% 4.43% 21.45% 11.31% 36.94%
Ratios and supplemental
data
Net assets, end of
period (thousands) $739,256 $371,361 $156,220 $162,847 $154,825 $135,079
Ratios to average net
assets
Expenses** 1.14%+ 1.30% 1.32% 1.32%+ 1.33% 1.38%
Net investment income
(loss) (0.54%)+ (0.66%) (0.38%) (0.20%)+ (0.29%) 0.00%
Portfolio turnover rate 68% 120% 159% 76% 173% 159%
<CAPTION>
Year Ended
Six Months Ended Year Ended September 30, December 31,
March 31, 2000 # ------------------------------- -------------------
(Unaudited) 1999 # 1998 # 1997 (a)# 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 24.99 $ 20.32 $ 21.71 $ 18.83 $ 19.10 $ 15.34
-------- -------- -------- -------- -------- --------
Income from investment
operations
Net investment loss (0.21) (0.34) (0.25) (0.15) (0.17) (0.09)
Net realized and
unrealized gains on
securities 13.72 7.62 0.99 3.88 2.03 5.41
-------- -------- -------- -------- -------- --------
Total from investment
operations 13.51 7.28 0.74 3.73 1.86 5.32
-------- -------- -------- -------- -------- --------
Distributions to
shareholders from
Net realized gains (0.99) (2.61) (2.13) (0.85) (2.13) (1.56)
-------- -------- -------- -------- -------- --------
Total distributions to
shareholders (0.99) (2.61) (2.13) (0.85) (2.13) (1.56)
-------- -------- -------- -------- -------- --------
Net asset value, end of
period $ 37.51 $ 24.99 $ 20.32 $ 21.71 $ 18.83 $ 19.10
-------- -------- -------- -------- -------- --------
Total return* 55.31% 38.57% 3.64% 20.68% 10.31% 35.70%
Ratios and supplemental
data
Net assets, end of
period (thousands) $981,956 $372,956 $114,068 $110,349 $89,921 $71,636
Ratios to average net
assets
Expenses** 1.89%+ 2.05% 2.10% 2.18%+ 2.20% 2.29%
Net investment loss (1.30%)+ (1.41%) (1.16%) (1.06%)+ (1.15%) (0.94%)
Portfolio turnover rate 68% 120% 159% 76% 173% 159%
</TABLE>
(a) For the nine months ended September 30, 1997. The Fund changed its fiscal
year end from December 31 to September 30, effective September 30, 1997.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment loss is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
50
<PAGE>
EVERGREEN
Omega Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended
Six Months Ended Year Ended September 30, December 31,
March 31, 2000 # ----------------------------- -----------------
(Unaudited) 1999 # 1998 # 1997 (a)# 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
Net asset value,
beginning of period $ 25.05 $ 20.37 $ 21.74 $ 18.86 $ 19.13 $ 15.37
-------- ------- ------- ------- ------- -------
Income from investment
operations
Net investment loss (0.22) (0.33) (0.25) (0.15) (0.18) (0.13)
Net realized and
unrealized gains on
securities 13.75 7.62 1.01 3.88 2.04 5.45
-------- ------- ------- ------- ------- -------
Total from investment
operations 13.53 7.29 0.76 3.73 1.86 5.32
-------- ------- ------- ------- ------- -------
Distributions to
shareholders from
Net realized gains (0.99) (2.61) (2.13) (0.85) (2.13) (1.56)
-------- ------- ------- ------- ------- -------
Total distributions to
shareholders (0.99) (2.61) (2.13) (0.85) (2.13) (1.56)
-------- ------- ------- ------- ------- -------
Net asset value, end of
period $ 37.59 $ 25.05 $ 20.37 $ 21.74 $ 18.86 $ 19.13
-------- ------- ------- ------- ------- -------
Total return* 55.25% 38.52% 3.73% 20.65% 10.29% 35.62%
Ratios and supplemental
data
Net assets, end of
period (thousands) $130,643 $26,929 $13,752 $16,067 $17,628 $13,963
Ratios to average net
assets
Expenses** 1.89%+ 2.04% 2.11% 2.18%+ 2.21% 2.30%
Net investment loss (1.30%)+ (1.40%) (1.16%) (1.05%)+ (1.17%) (0.91%)
Portfolio turnover rate 68% 120% 159% 76% 173% 159%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # ---------------------------
(Unaudited) 1999 # 1998 # 1997 (b)#
<S> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of
period $ 26.96 $21.54 $22.68 $19.98
------- ------ ------ ------
Income from investment
operations
Net investment loss (0.05) (0.11) (0.02) (0.01)
Net realized and unrealized
gains on securities 14.85 8.14 1.01 3.56
------- ------ ------ ------
Total from investment operations 14.80 8.03 0.99 3.55
------- ------ ------ ------
Distributions to shareholders
from
Net realized gains (0.99) (2.61) (2.13) (0.85)
------- ------ ------ ------
Total distributions to
shareholders (0.99) (2.61) (2.13) (0.85)
------- ------ ------ ------
Net asset value, end of period $ 40.77 $26.96 $21.54 $22.68
------- ------ ------ ------
Total return 56.07% 39.99% 4.67% 18.60%
Ratios and supplemental data
Net assets, end of period
(thousands) $15,728 $4,586 $ 571 $ 5
Ratios to average net assets
Expenses** 0.89%+ 1.05% 1.11% 1.24%+
Net investment loss (0.29%)+ (0.42%) (0.09%) (0.21%)+
Portfolio turnover rate 68% 120% 159% 76%
</TABLE>
(a) For the nine months ended September 30, 1997. The Fund changed its fiscal
year end from December 31 to September 30, effective September 30, 1997.
(b) For the period from January 13, 1997 (commencement of class operations) to
September 30, 1997.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment loss is based on average shares outstanding during the peri-
od.
See Combined Notes to Financial Statements.
51
<PAGE>
EVERGREEN
Small Company Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended
Six Months Ended September 30,
March 31, 2000 # -------------------
(Unaudited) 1999 # 1998 (a) #
<S> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning of period $ 6.47 $ 5.72 $ 7.75
------ ------ ------
Income from investment operations
Net investment loss (0.03) (0.04) (0.04)
Net realized and unrealized gains or
losses on securities 4.82 1.97 (1.99)
------ ------ ------
Total from investment operations 4.79 1.93 (2.03)
------ ------ ------
Distributions to shareholders from
Net realized gains 0 (1.18) 0
------ ------ ------
Total distributions to shareholders 0 (1.18) 0
------ ------ ------
Net asset value, end of period $11.26 $ 6.47 $ 5.72
------ ------ ------
Total return* 74.03% 39.74% (26.19%)
Ratios and supplemental data
Net assets, end of period (millions) $1,225 $ 712 $ 589
Ratios to average net assets
Expenses** 1.00%+ 1.17% 1.15%+
Net investment loss (0.57%)+ (0.63%) (0.50%)+
Portfolio turnover rate 94% 125% 97%
</TABLE>
<TABLE>
<CAPTION>
Year Ended
Six Months Ended Year Ended September 30, May 31,
March 31, 2000 # ---------------------------- ---------------
(Unaudited) 1999 # 1998 # 1997 (b) # 1997 1996
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $ 6.39 $ 5.69 $ 9.44 $ 8.44 $10.35 $ 8.62
------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment loss (0.06) (0.07) (0.07) (0.04) (0.11) (0.13)
Net realized and
unrealized gains or
losses on securities 4.74 1.95 (2.90) 1.74 (0.78) 2.87
------ ------ ------ ------ ------ ------
Total from investment
operations 4.68 1.88 (2.97) 1.70 (0.89) 2.74
------ ------ ------ ------ ------ ------
Distributions to
shareholders from
Net realized gains 0 (1.18) (0.78) (0.70) (1.02) (1.01)
------ ------ ------ ------ ------ ------
Total distributions to
shareholders 0 (1.18) (0.78) (0.70) (1.02) (1.01)
------ ------ ------ ------ ------ ------
Net asset value, end of
period $11.07 $ 6.39 $ 5.69 $ 9.44 $ 8.44 $10.35
------ ------ ------ ------ ------ ------
Total return* 73.24% 38.95% (33.91%) 21.43% (8.61%) 33.03%
Ratios and supplemental
data
Net assets, end of
period (millions) $ 86 $ 107 $ 200 $1,546 $1,407 $2,006
Ratios to average net
assets
Expenses** 1.77%+ 1.93% 1.36% 1.77%+ 1.75% 1.73%
Net investment loss (1.31%)+ (1.35%) (0.89%) (1.43%)+ (1.32%) (1.34%)
Portfolio turnover rate 94% 125% 97% 28% 48% 94%
</TABLE>
(a) For the period from January 20, 1998 (commencement of class operations) to
September 30, 1998.
(b) For the four months ended September 30, 1997. The Fund changed its fiscal
year end from May 31 to September 30, effective September 30, 1997.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment loss is based on average shares outstanding during the peri-
od.
See Combined Notes to Financial Statements.
52
<PAGE>
EVERGREEN
Small Company Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended
Six Months Ended September 30,
March 31, 2000 # -------------------
(Unaudited) 1999 # 1998 (a) #
<S> <C> <C> <C>
CLASS C SHARES
Net asset value, beginning of period $ 6.39 $ 5.70 $ 7.73
------ ------ -------
Income from investment operations
Net investment loss (0.06) (0.07) (0.10)
Net realized and unrealized gains or
losses on securities 4.74 1.94 (1.93)
------ ------ -------
Total from investment operations 4.68 1.87 (2.03)
------ ------ -------
Distributions to shareholders from
Net realized gains 0 (1.18) 0
------ ------ -------
Total distributions to shareholders 0 (1.18) 0
------ ------ -------
Net asset value, end of period $11.07 $ 6.39 $ 5.70
------ ------ -------
Total return* 73.24% 38.65% (26.26%)
Ratios and supplemental data
Net assets, end of period (millions) $ 9 $ 2 $ 4
Ratios to average net assets
Expenses** 1.75%+ 1.93% 1.90%+
Net investment loss (1.34%)+ (1.36%) (1.32%)+
Portfolio turnover rate 94% 125% 97%
<CAPTION>
Year Ended
Six Months Ended September 30,
March 31, 2000 # -------------------
(Unaudited) 1999 # 1998 (a) #
<S> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of period $ 6.51 $ 5.74 $ 7.73
------ ------ -------
Income from investment operations
Net investment loss (0.02) (0.03) (0.02)
Net realized and unrealized gains or
losses on securities 4.84 1.98 (1.97)
------ ------ -------
Total from investment operations 4.82 1.95 (1.99)
------ ------ -------
Distributions to shareholders from
Net realized gains 0 (1.18) 0
------ ------ -------
Total distributions to shareholders 0 (1.18) 0
------ ------ -------
Net asset value, end of period $11.33 $ 6.51 $ 5.74
------ ------ -------
Total return 74.04% 40.01% (25.74%)
Ratios and supplemental data
Net assets, end of period (millions) $ 5 $ 2 $ 1
Ratios to average net assets
Expenses** 0.76%+ 0.92% 0.91%+
Net investment loss (0.33%)+ (0.42%) (0.33%)+
Portfolio turnover rate 94% 125% 97%
</TABLE>
(a) For the period from January 26, 1998 (commencement of class operations) to
September 30, 1998.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment loss is based on average shares outstanding during the peri-
od.
See Combined Notes to Financial Statements.
53
<PAGE>
EVERGREEN
Stock Selector Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended
Six Months Ended September 30, Year Ended June 30,
March 31, 2000 # ------------------ ------------------------------ Period Ended
(Unaudited) 1999 1998 (e) 1998 1997 1996 (b)(c) October 31, 1995 (a)
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value,
beginning of period $ 20.06 $ 18.34 $ 22.43 $ 21.13 $ 17.28 $ 17.08 $15.00
------- ------- ------- ------- ------- ------- ------
Income from investment
operations
Net investment income
(loss) 0 (0.02) 0 (0.02) 0.07 0.12 0.18
Net realized and
unrealized gains or
losses on securities
and futures contracts 2.77 5.86 (4.09) 4.24 5.32 1.49 2.87
------- ------- ------- ------- ------- ------- ------
Total from investment
operations 2.77 5.84 (4.09) 4.22 5.39 1.61 3.05
------- ------- ------- ------- ------- ------- ------
Distributions to
shareholders from
Net investment income 0 (0.01) 0 0 (0.07) (0.11) (0.17)
Net realized gains (2.34) (4.11) 0 (2.92) (1.47) (1.30) (0.80)
------- ------- ------- ------- ------- ------- ------
Total distributions to
shareholders (2.34) (4.12) 0 (2.92) (1.54) (1.41) (0.97)
------- ------- ------- ------- ------- ------- ------
Net asset value, end of
period $ 20.49 $ 20.06 $ 18.34 $ 22.43 $ 21.13 $ 17.28 $17.08
------- ------- ------- ------- ------- ------- ------
Total return* 14.26% 35.15% (18.23%) 21.54% 32.74% 19.11% 21.94%
Ratios and supplemental
data
Net assets, end of
period (thousands) $23,069 $20,930 $15,910 $20,509 $16,043 $11,178 $6,591
Ratios to average net
assets
Expenses** 1.09%+ 1.10% 1.18%+ 1.25% 1.23% 1.22%+ 1.34%
Net investment income
(loss) (0.16%)+ (0.16%) (0.06%)+ (0.10%) 0.38% 0.89%+ 1.23%
Portfolio turnover rate 76% 85% 28% 61% 79% 114% 119%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # ----------------------------- Year Ended
(Unaudited) 1999 1998 (d) June 30, 1998 (e)
<S> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $19.77 $ 18.23 $ 22.33 $22.76 (f)
------ ------------ ------------ ------
Income from investment
operations
Net investment loss (0.01) (0.06) (0.03) (0.09)
Net realized and
unrealized gains or
losses on securities
and futures contracts 2.65 5.71 (4.07) 2.90
------ ------------ ------------ ------
Total from investment
operations 2.64 5.65 (4.10) 2.81
------ ------------ ------------ ------
Distributions to
shareholders from
Net realized gains (2.34) (4.11) 0 (3.24)(f)
------ ------------ ------------ ------
Total distributions to
shareholders (2.34) (4.11) 0 (3.24)
------ ------------ ------------ ------
Net asset value, end of
period $20.07 $ 19.77 $ 18.23 $22.33
------ ------------ ------------ ------
Total return* 13.77% 34.18% (18.36%) 14.38%
Ratios and supplemental
data
Net assets, end of
period (thousands) $3,014 $ 2,376 $ 413 $ 349
Ratios to average net
assets
Expenses** 1.85%+ 1.82% 1.94%+ 2.00%+
Net investment loss (0.91%)+ (0.86%) (0.76%)+ (0.85%)+
Portfolio turnover rate 76% 85% 28% 61%
</TABLE>
(a) On February 21, 1995, the Shares of the Fund were redesignated as either
Retail or Institutional Shares. On that date, the Fund's net investment in-
come, expenses and distributions for the period November 1, 1994 through
February 20, 1995 were allocated to each class of Shares. The basis for the
allocation was the relative net assets of each class of Shares as of Febru-
ary 21, 1995. The results were combined with the results of operations and
distributions for each applicable class for the period February 21, 1995
through October 31, 1995. For the year ended October 31, 1995, the Finan-
cial Highlights' ratio of expenses, net investment income, total return,
and the per share investment activities and distributions reflect this al-
location.
(b) For the eight months ended June 30, 1996. The Fund changed its fiscal year
end from October 31 to June 30, effective June 30, 1996.
(c) On April 15, 1996, the Conestoga Equity Fund was acquired by CoreFunds,
Inc. At that time, the Retail Class Shares of the Fund were exchanged for
Class A Shares.
(d) For the three months ended September 30, 1998. The Fund changed its fiscal
year end from June 30 to September 30, effective September 30, 1998.
(e) For the period from November 7, 1997 (commencement of class operations) to
June 30, 1998.
(f) Amounts adjusted to reflect a reverse stock split which occurred on June
24, 1998.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
54
<PAGE>
EVERGREEN
Stock Selector Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
March 31, 2000 # Period Ended
(Unaudited) September 30, 1999 (e)
<S> <C> <C>
CLASS C SHARES
Net asset value, beginning of period $20.02 $21.58
------ ------
Income from investment operations
Net investment loss (0.03) (0.01)
Net realized and unrealized gains on
securities and futures contracts 2.71 (1.55)
------ ------
Total from investment operations 2.68 (1.56)
------ ------
Distributions to shareholders from
Net investment income
Net realized gains (2.34) 0
------ ------
Total distributions to shareholders (2.34) 0
------ ------
Net asset value, end of period $20.36 $20.02
------ ------
Total return* 13.80% (7.23%)
Ratios and supplemental data
Net assets, end of period (thousands) $ 417 $ 78
Ratios to average net assets
Expenses** 1.86%+ 1.87%+
Net investment income (0.92%)+ (0.78%)+
Portfolio turnover rate 76% 85%
</TABLE>
<TABLE>
<CAPTION>
Year Ended
Six Months Ended September 30, Year Ended June 30, Institutional Class
March 31, 2000 # ------------------ ------------------------------- Year Ended
(Unaudited) 1999 1998 (d) 1998 1997 1996 (b)(c) October 31, 1995 (a)
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS Y SHARES
Net asset value,
beginning of period $ 20.11 $ 18.35 $ 22.43 $ 21.11 $ 17.26 $ 17.07 $ 15.00
-------- -------- -------- -------- -------- -------- --------
Income from investment
operations
Net investment income 0.01 0.02 0.01 0.04 0.12 0.14 0.19
Net realized and
unrealized gains or
losses on securities
and futures contracts 2.78 5.87 (4.09) 4.24 5.32 1.49 2.87
-------- -------- -------- -------- -------- -------- --------
Total from investment
operations 2.79 5.89 (4.08) 4.28 5.44 1.63 3.06
-------- -------- -------- -------- -------- -------- --------
Distributions to
shareholders from
Net investment income (0.01) (0.02) 0 (0.04) (0.12) (0.14) (0.19)
Net realized gains (2.34) (4.11) 0 (2.92) (1.47) (1.30) (0.80)
-------- -------- -------- -------- -------- -------- --------
Total distributions to
shareholders (2.35) (4.13) 0 (2.96) (1.59) (1.44) (0.99)
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of
period $ 20.55 $ 20.11 $ 18.35 $ 22.43 $ 21.11 $ 17.26 $ 17.07
-------- -------- -------- -------- -------- -------- --------
Total return 14.40% 35.49% (18.19%) 21.90% 33.10% 19.24% 22.00%
Ratios and supplemental
data
Net assets, end of
period (thousands) $451,300 $476,928 $424,992 $563,987 $515,015 $414,824 $378,352
Ratios to average net
assets
Expenses** 0.85%+ 0.85% 0.93%+ 1.00% 0.98% 0.97%+ 1.05%+
Net investment income 0.09% 0.09% 0.19%+ 0.15% 0.63% 1.15%+ 1.44%+
Portfolio turnover rate 76% 85% 28% 61% 79% 114% 119%
</TABLE>
(a) On February 21, 1995, the Shares of the Fund were redesignated as either
Retail or Institutional Shares. On that date, the Fund's net investment in-
come, expenses and distributions for the period November 1, 1994 through
February 20, 1995 were allocated to each class of Shares. The basis for the
allocation was the relative net assets of each class of Shares as of Febru-
ary 21, 1995. The results were combined with the results of operations and
distributions for each applicable class for the period February 21, 1995
through October 31, 1995. For the year ended October 31, 1995, the Finan-
cial Highlights' ratio of expenses, net investment income, total return,
and the per share investment activities and distributions reflect this al-
location.
(b) For the eight months ended June 30, 1996. The Fund changed its fiscal year
end from October 31 to June 30, effective June 30, 1996.
(c) On April 15, 1996, the Conestoga Equity Fund was acquired by CoreFunds,
Inc. At that time the Institutional Class Shares of the Fund were exchanged
for Class Y Shares.
(d) For the three months ended September 30, 1998. The Fund changed its fiscal
year end from June 30 to September 30, effective September 30, 1998.
(e) For the period from June 30, 1999 (commencement of class operations) to
September 30, 1999.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
55
<PAGE>
EVERGREEN
Strategic Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # -----------------------------
(Unaudited) 1999 # 1998 (a) #
<S> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning of
period $11.03 $ 9.67 $ 9.12
------ ------ ------
Income from investment
operations
Net investment income (loss) (0.02) (0.03) 0.01
Net realized and unrealized
gains on securities 4.67 2.73 0.54
------ ------ ------
Total from investment
operations 4.65 2.70 0.55
------ ------ ------
Distributions to shareholders
from
Net realized gains (1.80) (1.34) 0
------ ------ ------
Total distributions to
shareholders (1.80) (1.34) 0
------ ------ ------
Net asset value, end of period $13.88 $11.03 $ 9.67
------ ------ ------
Total return* 46.22% 30.15% 6.03%
Ratios and supplemental data
Net assets, end of period
(millions) $1,239 $ 862 $ 706
Ratios to average net assets
Expenses** 0.95%+ 1.00% 1.10%+
Net investment income (loss) (0.34%)+ (0.29%) 0.08%+
Portfolio turnover rate 74% 132% 141%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30, Year Ended October 31,
March 31, 2000 # ---------------------------- ----------------------
(Unaudited) 1999 # 1998 # 1997 (b) # 1996 1995
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value,
beginning of period $10.89 $ 9.63 $10.61 $ 8.68 $ 8.05 $ 7.54
------ ------ ------ ------ ------ ------
Income from investment
operations
Net investment income
(loss) (0.07) (0.11) (0.03) 0.01 (0.04) (0.02)
Net realized and
unrealized gains on
securities 4.59 2.71 0.39 2.96 1.04 1.13
------ ------ ------ ------ ------ ------
Total from investment
operations 4.52 2.60 0.36 2.97 1.00 1.11
------ ------ ------ ------ ------ ------
Distributions to
shareholders from
Net investment income 0 0 (0.02) 0 (0.01) 0
Net realized gains (1.80) (1.34) (1.32) (1.04) (0.36) (0.60)
------ ------ ------ ------ ------ ------
Total distributions to
shareholders (1.80) (1.34) (1.34) (1.04) (0.37) (0.60)
------ ------ ------ ------ ------ ------
Net asset value, end of
period $13.61 $10.89 $ 9.63 $10.61 $ 8.68 $ 8.05
------ ------ ------ ------ ------ ------
Total return* 45.57% 29.15% 3.87% 37.74% 12.95% 15.05%
Ratios and supplemental
data
Net assets, end of
period (millions) $ 89 $ 103 $ 130 $ 920 $ 497 $ 492
Ratios to average net
assets
Expenses** 1.71%+ 1.75% 1.36% 1.19%+ 1.91% 2.01%
Net investment income
(loss) (1.08%)+ (1.03%) (0.26%) 0.12%+ (0.48%) (0.25%)
Portfolio turnover rate 74% 132% 141% 71% 156% 140%
</TABLE>
(a) For the period from January 20, 1998 (commencement of class operations) to
September 30, 1998.
(b) For the eleven months ended September 30, 1997. The Fund changed its fiscal
year end from October 31 to September 30, effective September 30, 1997.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
56
<PAGE>
EVERGREEN
Strategic Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Year Ended
Six Months Ended September 30,
March 31, 2000 # -------------------
(Unaudited) 1999 # 1998 (a) #
<S> <C> <C> <C>
CLASS C SHARES
Net asset value, beginning of period $10.89 $ 9.63 $9.25
------ ------ -----
Income from investment operations
Net investment loss (0.06) (0.12) (0.07)
Net realized and unrealized gains on
securities 4.60 2.72 0.45
------ ------ -----
Total from investment operations 4.54 2.60 0.38
------ ------ -----
Distributions to shareholders from
Net realized gains (1.80) (1.34) 0
------ ------ -----
Total distributions to shareholders (1.80) (1.34) 0
------ ------ -----
Net asset value, end of period $13.63 $10.89 $9.63
------ ------ -----
Total return* 45.77% 29.15% 4.11%
Ratios and supplemental data
Net assets, end of period (thousands) $5,425 $2,452 $ 453
Ratios to average net assets
Expenses** 1.70%+ 1.75% 1.84%+
Net investment loss (1.09%)+ (1.08%) (0.80%)+
Portfolio turnover rate 74% 132% 141%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
March 31, 2000 # Period Ended
(Unaudited) September 30, 1999 (b) #
<S> <C> <C>
CLASS Y SHARES
Net asset value, beginning of period $10.92 $11.28
------ ------
Income from investment operations
Net investment income (loss) (0.01) 0
Net realized and unrealized gains
and losses on securities 4.62 (0.36)
------ ------
Total from investment operations 4.61 (0.36)
------ ------
Distributions to shareholders from
Net realized gains (1.80) 0
------ ------
Total distributions to shareholders (1.80) 0
------ ------
Net asset value, end of period $13.73 $10.92
------ ------
Total return 46.34% (3.19%)
Ratios and supplemental data
Net assets, end of period
(thousands) $1,878 $ 238
Ratios to average net assets
Expenses** 0.69%+ 0.75%+
Net investment loss (0.11%)+ (0.10%)+
Portfolio turnover rate 74% 132%
</TABLE>
(a) For the period from January 22, 1998 (commencement of class operations) to
September 30, 1998.
(b) For the period from June 30, 1999 (commencement of class operations) to
September 30, 1999.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment loss is based on average shares outstanding during the peri-
od.
See Combined Notes to Financial Statements.
57
<PAGE>
EVERGREEN
Tax Strategic Equity Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Year Ended September 30,
March 31, 2000 # ----------------------------
(Unaudited) 1999 # 1998 (a)#
<S> <C> <C> <C>
CLASS A SHARES
Net asset value, beginning of
period $14.01 $10.65 $10.11
------ ------ ------
Income from investment
operations
Net investment income (loss) (0.02) (0.03) 0
Net realized and unrealized
gains on securities 3.11 3.41 0.54
------ ------ ------
Total from investment
operations 3.09 3.38 0.54
------ ------ ------
Distributions to shareholders
from
Net investment income 0 (0.02) 0
------ ------ ------
Total distributions to
shareholders 0 (0.02) 0
------ ------ ------
Net asset value, end of period $17.10 $14.01 $10.65
------ ------ ------
Total return* 22.06% 31.69% 5.34%
Ratios and supplemental data
Net assets, end of period
(thousands) $9,062 $5,055 $ 10
Ratios to average net assets
Expenses** 1.62%+ 1.58% 1.54%+
Net investment income (loss) (0.28%)+ (0.25%) 9.12%+
Portfolio turnover rate 15% 90% 0%
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
March 31, 2000 # Period Ended
(unaudited) September 30, 1999 (b)#
<S> <C> <C>
CLASS B SHARES
Net asset value, beginning of period $ 13.94 $10.26
------- ------
Income from investment operations
Net investment loss (0.08) (0.13)
Net realized and unrealized gains on
securities 3.08 3.83
------- ------
Total from investment operations 3.00 3.70
------- ------
Distributions to shareholders from
Net investment income 0 (0.02)
------- ------
Total distributions to shareholders 0 (0.02)
------- ------
Net asset value, end of period $ 16.94 $13.94
------- ------
Total return* 21.52% 36.01%
Ratios and supplemental data
Net assets, end of period (thousands) $13,616 $7,882
Ratios to average net assets
Expenses** 2.37%+ 2.33%+
Net investment loss (1.02%)+ (1.03%)+
Portfolio turnover rate 15% 90%
</TABLE>
(a) For the period from September 4, 1998 (commencement of class operations) to
September 30, 1998.
(b) For the period from October 14, 1998 (commencement of class operations) to
September 30, 1999.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
fee credits.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
58
<PAGE>
EVERGREEN
Tax Strategic Equity Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
March 31, 2000 # Period Ended
(Unaudited) September 30, 1999 (a)#
<S> <C> <C>
CLASS C SHARES
Net asset value, beginning of period $13.96 $12.51
------ ------
Income from investment operations
Net investment loss (0.08) (0.14)
Net realized and unrealized gains on
securities 3.09 1.61
------ ------
Total from investment operations 3.01 1.47
------ ------
Distributions to shareholders from
Net investment income 0 (0.02)
------ ------
Total distributions to shareholders 0 (0.02)
------ ------
Net asset value, end of period $16.97 $13.96
------ ------
Total return* 21.56% 11.71%
Ratios and supplemental data
Net assets, end of period (thousands) $4,361 $2,162
Ratios to average net assets
Expenses** 2.37%+ 2.33%+
Net investment loss (1.03%)+ (0.98%)+
Portfolio turnover rate 15% 90%
</TABLE>
<TABLE>
<CAPTION>
Year Ended
Six Months Ended September 30,
March 31, 2000 # ------------------
(Unaudited) 1999 # 1998 (b)#
<S> <C> <C> <C>
CLASS Y SHARES
Net asset value, beginning of period $14.08 $10.65 $10.00
------ ------ ------
Income from investment operations
Net investment income 0 0 0
Net realized and unrealized gains on
securities 3.12 3.45 0.65
------ ------ ------
Total from investment operations 3.12 3.45 0.65
------ ------ ------
Distributions to shareholders from
Net investment income 0 (0.02) 0
------ ------ ------
Total distributions to shareholders 0 (0.02) 0
------ ------ ------
Net asset value, end of period $17.20 $14.08 $10.65
------ ------ ------
Total return 22.16% 32.34% 6.50%
Ratios and supplemental data
Net assets, end of period (thousands) $1,285 $2,454 $3,629
Ratios to average net assets
Expenses** 1.38%+ 1.32% 1.30%+
Net investment income (loss) (0.01)+ (0.01%) 8.87%+
Portfolio turnover rate 15% 90% 0%
</TABLE>
(a) For the period from November 4, 1998 (commencement of class operations) to
September 30, 1999.
(b) For the period from September 1, 1998 (commencement of class operations) to
September 30, 1998.
* Excluding applicable sales charges.
** Ratio of expenses to average net assets includes fee waivers and excludes
expense reductions.
+ Annualized.
# Net investment income (loss) is based on average shares outstanding during
the period.
See Combined Notes to Financial Statements.
59
<PAGE>
EVERGREEN
Aggressive Growth Fund
Schedule of Investments
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 94.7%
Biotechnology - 2.9%
16,300 * Alkermes, Inc...................................... $ 1,507,750
73,000 * Genzyme Transgenics Corp........................... 1,460,000
65,000 * Ilex Oncology, Inc................................. 2,730,000
45,000 * Immunex Corp....................................... 2,854,687
15,000 * MedImmune, Inc..................................... 2,611,875
40,800 * Neopharm, Inc...................................... 1,020,000
15,700 * Sequenom, Inc...................................... 618,188
------------
12,802,500
------------
Communications Equipment - 10.9%
45,000 * CIENA Corp......................................... 5,675,625
260,000 * Cisco Systems, Inc................................. 20,101,250
100,000 * Copper Mountain Networks, Inc...................... 8,193,750
70,000 Ericsson LM Telephone Co., Cl. B, ADR................ 6,566,875
18,000 * Finisar Corp....................................... 2,637,281
25,000 * RF Micro Devices, Inc.............................. 3,359,375
17,700 * Sycamore Networks, Inc............................. 2,283,300
------------
48,817,456
------------
Computers & Peripherals - 6.4%
115,000 * EMC Corp........................................... 14,375,000
375,000 * Maxtor Corp........................................ 4,851,563
110,000 * NVIDIA Corp........................................ 9,293,281
------------
28,519,844
------------
Diversified Financials - 3.6%
155,300 Citigroup, Inc....................................... 9,211,231
125,000 Schwab (Charles) & Co., Inc.......................... 7,101,563
------------
16,312,794
------------
Diversified Telecommunication Services - 3.1%
45,000 * Allegiance Telecom, Inc............................ 3,628,125
104,500 * AT&T Corp. Liberty Media Group, Cl. A.............. 6,191,625
59,000 Sonera Oyj, ADR...................................... 3,916,125
------------
13,735,875
------------
Electronic Equipment & Instruments - 7.4%
65,000 * Cree Research, Inc................................. 7,336,875
72,000 * JDS Uniphase Corp.................................. 8,680,500
89,900 * Sandisk Corp....................................... 11,012,750
90,000 * Sanmina Corp....................................... 6,080,625
------------
33,110,750
------------
Energy Equipment &
Services - 7.4%
70,000 * BJ Services Co., Inc............................... 5,171,250
125,000 Diamond Offshore Drilling, Inc....................... 4,992,188
180,000 ENSCO International, Inc............................. 6,502,500
140,000 * Nabors Industries, Inc............................. 5,433,750
250,000 * R&B Falcon Corp.................................... 4,921,875
100,000 * Weatherford International, Inc..................... 5,893,750
------------
32,915,313
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Health Care Equipment &
Supplies - 2.5%
80,000 Medtronic, Inc....................................... $ 4,115,000
105,200 * Osteotech, Inc..................................... 1,407,050
58,200 PE Corp-PE Biosystems Group.......................... 5,616,300
------------
11,138,350
------------
Health Care Providers &
Services - 1.9%
250,000 * Health Management Associates, Inc., Cl. A.......... 3,562,500
80,000 United Healthcare Corp............................... 4,770,000
------------
8,332,500
------------
Industrial Conglomerates - 1.5%
135,000 Tyco International, Ltd.............................. 6,733,125
------------
Internet Software & Services - 2.7%
90,000 * America Online, Inc................................ 6,052,500
45,000 * Broadvision, Inc................................... 2,019,375
6,400 * Selectica, Inc..................................... 564,800
20,000 * Yahoo!, Inc........................................ 3,427,500
------------
12,064,175
------------
Media - 2.9%
200,000 * Infinity Broadcasting Corp......................... 6,475,000
110,000 Seagram Co., Ltd..................................... 6,545,000
------------
13,020,000
------------
Oil & Gas - 3.2%
131,000 Apache Corp.......................................... 6,517,250
165,000 Devon Energy Corp.................................... 8,012,813
------------
14,530,063
------------
Pharmaceuticals - 7.4%
235,000 American Home Products Corp.......................... 12,601,875
125,000 ICN Pharmaceuticals, Inc............................. 3,406,250
250,000 Pharmacia & Upjohn, Inc.............................. 14,812,500
61,800 * Watson Pharmaceuticals, Inc........................ 2,452,687
------------
33,273,312
------------
Semiconductor Equipment & Products - 14.7%
23,000 * Broadcom Corp...................................... 5,586,125
90,000 * Cymer, Inc......................................... 4,500,000
28,100 * Cypress Semiconductor Corp......................... 1,385,681
110,000 Intel Corp........................................... 14,513,125
41,600 * Intersil Holding Corp.............................. 2,150,200
73,200 * LSI Logic Corp..................................... 5,316,150
90,000 Micron Technology, Inc............................... 11,340,000
45,000 * Photon Dynamics, Inc............................... 3,105,000
30,000 * PMC-Sierra, Inc.................................... 6,110,625
70,000 * Teradyne, Inc...................................... 5,757,500
60,000 * Vitesse Semiconductor Corp......................... 5,775,000
------------
65,539,406
------------
</TABLE>
60
<PAGE>
EVERGREEN
Aggressive Growth Fund
Schedule of Investments(continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Software - 11.8%
100,000 * Documentum, Inc.................................... $ 7,800,000
100,000 * Entrust Technologies, Inc.......................... 8,507,812
20,000 * I2 Technologies, Inc............................... 2,442,500
95,000 * Microsoft Corp..................................... 10,093,750
50,000 * Oracle Systems Corp................................ 3,903,125
130,000 * Remedy Corp........................................ 5,476,250
40,000 * Siebel Systems, Inc................................ 4,777,500
75,000 * Veritas Software Corp.............................. 9,825,000
------------
52,825,937
------------
Specialty Retail - 3.1%
120,000 * Best Buy Co., Inc.................................. 10,320,000
57,500 Home Depot, Inc...................................... 3,708,750
------------
14,028,750
------------
Wireless Telecommunications Services - 1.3%
44,414 * Voicestream Wireless Corp.......................... 5,721,078
------------
Total Common Stocks
(cost $275,592,368)................................. $423,421,228
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
REPURCHASE AGREEMENTS - 8.4%
$37,330,000 State Street Bank & Trust Co., purchased 3/31/2000,
6.05%, maturing 4/3/2000, maturity
value $37,348,821
(cost $37,330,000) (a)............................ $ 37,330,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -
(cost $312,922,368)........................ 103.1% 460,751,228
Other Assets and Liabilities - net.......... (3.1) (13,702,659)
----- ------------
Net Assets.................................. 100.0% $447,048,569
===== ============
</TABLE>
(a) The repurchase agreement is fully collateralized by: $2,430,000 FNMA,
6.00%, 9/24/2001; value including accrued interest $2,404,690.
$36,335,000 FNMA, 5.94%, 9/4/2001; value including accrued interest
$36,069,378.
* Non-income producing security.
Summary of Abbreviations
ADR American Depository Receipt
See Combined Notes to Financial Statements.
61
<PAGE>
EVERGREEN
Capital Growth Fund
Schedule of Investments
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 97.3%
Aerospace & Defense - 1.2%
81,500 United Technologies Corp............................ $ 5,149,781
------------
Banks - 10.5%
512,500 SouthTrust Corp..................................... 13,036,719
556,940 Washington Mutual, Inc.............................. 14,758,910
446,500 Wells Fargo Co...................................... 18,278,593
------------
46,074,222
------------
Building Products - 2.2%
476,250 Masco Corp.......................................... 9,763,125
------------
Chemicals - 3.8%
748,000 Sherwin Williams Co................................. 16,409,250
------------
Commercial Services &
Supplies - 11.2%
364,000 Automatic Data Processing, Inc...................... 17,563,000
147,150 * Computer Sciences Corp............................ 11,643,244
447,600 First Data Corp..................................... 19,806,300
------------
49,012,544
------------
Computers & Peripherals - 2.9%
109,000 International Business Machines Corp................ 12,862,000
------------
Diversified Financials - 7.5%
91,800 American Express Co................................. 13,672,463
337,800 Federal National Mortgage Assn...................... 19,064,587
------------
32,737,050
------------
Diversified Telecommunication Services - 1.9%
181,875 * MCI WorldCom, Inc................................. 8,241,211
------------
Electric Utilities - 1.1%
95,000 Duke Energy Corp.................................... 4,987,500
------------
Food & Drug Retailing - 7.2%
373,500 Albertsons, Inc..................................... 11,578,500
550,700 SYSCO Corp.......................................... 19,653,106
------------
31,231,606
------------
Food Products - 1.1%
98,000 Bestfoods........................................... 4,587,625
------------
Health Care Providers &
Services - 4.0%
766,600 * Tenet Healthcare Corp............................. 17,631,800
------------
Household Durables - 3.1%
542,200 Newell Rubbermaid, Inc. (b)......................... 13,453,338
------------
Industrial Conglomerates - 9.0%
273,000 Danaher Corp........................................ 13,923,000
507,300 Tyco International, Ltd............................. 25,301,588
------------
39,224,588
------------
Machinery - 2.7%
211,000 Illinois Tool Works, Inc............................ 11,657,750
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Media - 3.6%
332,400 Interpublic Group of Companies, Inc................. $ 15,705,900
------------
Multiline Retail - 0.4%
56,500 May Dept. Stores Co................................. 1,610,250
------------
Personal Products - 3.1%
244,400 Kimberly-Clark Corp................................. 13,686,400
------------
Pharmaceuticals - 9.0%
262,700 American Home Products Corp......................... 14,087,287
151,930 Bristol-Myers Squibb Co............................. 8,773,958
106,100 Johnson & Johnson................................... 7,433,631
124,500 Pfizer, Inc......................................... 4,552,031
124,500 Schering-Plough Corp................................ 4,575,375
------------
39,422,282
------------
Road & Rail - 1.3%
335,562 Werner Enterprises, Inc............................. 5,704,554
------------
Semiconductor Equipment & Products - 4.5%
150,510 Intel Corp.......................................... 19,857,913
------------
Software - 2.4%
178,000 Computer Associates International, Inc.............. 10,535,375
------------
Tobacco - 3.6%
747,340 Philip Morris Cos., Inc............................. 15,787,558
------------
Total Common Stocks
(cost $375,044,592)................................ 425,333,622
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
SHORT-TERM INVESTMENTS - 4.2%
Mutual Fund Shares - 1.7%
7,370,000 Navigator Prime Portfolio
(cost $7,370,000) (c).............................. 7,370,000
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
Repurchase Agreement - 2.5%
10,819,261 State Street Bank & Trust Co., purchased 3/31/2000,
6.05%, maturing 4/3/2000, maturity
value $10,824,716
(cost $10,819,261) (a)............................ 10,819,261
------------
Total Short-Term Investments
(cost $18,189,261)................................ 18,189,261
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments
(cost $393,233,853)........................ 101.5% 443,522,883
Other Assets and
Liabilities - net.......................... (1.5) (6,548,482)
----- ------------
Net Assets.................................. 100.0% $436,974,401
===== ============
</TABLE>
(a) The repurchase agreement is fully collateralized by: $10,925,000
FNMA, 6.270%, 11/29/2001; value including accrued interest
$11,042,393.
(b) All or a portion of this security is on loan.
(c) Represents investment in cash collateral received for securities on
loan.
* Non-income producing security.
See Combined Notes to Financial Statements.
62
<PAGE>
EVERGREEN
Evergreen Fund
Schedule of Investments
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 99.8%
Aerospace & Defense - 1.1%
95,100 * General Motors Corp., Cl. H..................... $ 11,839,950
165,300 United Technologies Corp. ........................ 10,444,894
--------------
22,284,844
--------------
Auto Components - 0.2%
289,500 Delphi Automotive Systems Corp.................... 4,632,000
--------------
Banks - 3.1%
783,910 BankAmerica Corp.................................. 41,106,281
296,000 FleetBoston Financial Corp........................ 10,804,000
7,050 M&T Bank Corp..................................... 3,147,825
71,400 State Street Corp................................. 6,916,875
57,100 U.S. Bancorp...................................... 1,249,062
--------------
63,224,043
--------------
Beverages - 1.3%
175,000 Anheuser Busch Companies, Inc. ................... 10,893,750
443,100 Pepsico, Inc...................................... 15,314,644
--------------
26,208,394
--------------
Biotechnology - 0.5%
168,200 * Amgen, Inc. .................................... 10,323,275
--------------
Chemicals - 2.1%
80,100 Dow Chemical Co. ................................. 9,131,400
512,500 DuPont (E.I.) De Nemours & Co..................... 27,098,437
145,500 PPG Industries, Inc. ............................. 7,611,469
--------------
43,841,306
--------------
Commercial Services &
Supplies - 0.7%
188,900 Automatic Data Processing, Inc.................... 9,114,425
78,000 * Mity Lite, Inc.................................. 1,291,875
55,800 Priceline.com, Inc................................ 4,464,000
--------------
14,870,300
--------------
Communications Equipment - 12.0%
1,348,600 * Cisco Systems, Inc.............................. 104,263,637
92,100 Corning, Inc...................................... 17,867,400
123,000 Ericsson LM Telephone Co., Cl. B, ADR............. 11,538,938
150,000 Motorola, Inc..................................... 21,356,250
98,800 Nokia Corp., ADR.................................. 21,464,300
368,300 Nortel Networks Corp.............................. 46,405,800
157,100 * Qualcomm, Inc................................... 23,456,994
--------------
246,353,319
--------------
Computers & Peripherals - 6.9%
204,500 * EMC Corp. ...................................... 25,562,500
148,800 Hewlett-Packard Co................................ 19,725,300
294,400 International Business Machines Corp. ............ 34,739,200
43,800 * Network Appliance, Inc. ........................ 3,624,450
625,800 Sun Microsystems, Inc............................. 58,639,416
--------------
142,290,866
--------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Diversified Financials - 10.1%
128,300 American Express Co............................... $ 19,108,681
172,100 Chase Manhattan Corp.............................. 15,004,969
601,200 Citigroup, Inc. .................................. 35,658,675
162,800 Federal National Mortgage Assn. .................. 9,188,025
670,580 General Electric Co............................... 104,065,634
103,600 Morgan Stanley, Dean Witter & Co.................. 8,449,875
276,200 Schwab (Charles) & Co., Inc....................... 15,691,612
--------------
207,167,471
--------------
Diversified Telecommunication Services - 5.0%
389,800 AT&T Corp. ....................................... 21,926,250
173,400 * Global Crossing, Ltd. .......................... 7,098,563
200,600 GTE Corp.......................................... 14,242,600
480,900 * MCI WorldCom, Inc. ............................. 21,790,781
203,300 * Qwest Communications International, Inc......... 9,860,050
311,300 Sprint Corp. ..................................... 19,611,900
106,600 U.S. West, Inc.................................... 7,741,825
--------------
102,271,969
--------------
Electric Utilities - 0.3%
77,300 Duke Energy Corp.................................. 4,058,250
122,500 Southern Co....................................... 2,664,375
--------------
6,722,625
--------------
Electrical Equipment - 0.1%
100,600 * Genlyte Group, Inc. ............................ 1,961,700
--------------
Electronic Equipment & Instruments - 0.8%
58,800 * JDS Uniphase Corp............................... 7,089,075
100,000 * Meade Instruments Corp.......................... 6,900,000
88,900 Measurement Specialties, Inc...................... 2,250,281
--------------
16,239,356
--------------
Energy Equipment &
Services - 2.1%
432,400 Baker Hughes, Inc................................. 13,080,100
105,200 Diamond Offshore Drilling, Inc.................... 4,201,425
106,200 Halliburton Co.................................... 4,354,200
209,100 Schlumberger, Ltd................................. 15,996,150
109,300 Transocean Sedco Forex, Inc. ..................... 5,608,456
--------------
43,240,331
--------------
Food & Drug Retailing - 0.4%
125,400 CVS Corp. ........................................ 4,710,338
178,900 Walgreen Co. ..................................... 4,606,675
--------------
9,317,013
--------------
Food Products - 0.3%
93,800 Quaker Oats Co.................................... 5,686,625
--------------
</TABLE>
63
<PAGE>
EVERGREEN
Evergreen Fund
Schedule of Investments(continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Gas Utilities - 1.2%
236,600 Enron Corp........................................ $ 17,715,425
142,400 The Williams Companies, Inc. ..................... 6,256,700
--------------
23,972,125
--------------
Health Care Equipment & Supplies - 2.1%
128,300 Baxter International, Inc. ....................... 8,042,806
150,300 Biomet, Inc. ..................................... 5,467,163
109,000 * Guidant Corp.................................... 6,410,562
396,800 Medtronic, Inc.................................... 20,410,400
36,400 PE Corp-PE Biosystems Group....................... 3,512,600
--------------
43,843,531
--------------
Hotels Restaurants &
Leisure - 0.8%
439,500 McDonald's Corp................................... 16,508,719
--------------
Household Durables - 0.1%
145,200 * Koala Corp...................................... 1,932,975
--------------
Industrial Conglomerates - 2.3%
304,320 Honeywell International, Inc...................... 16,033,860
147,400 Minnesota Mining & Manufacturing Co............... 13,054,112
374,000 Tyco International, Ltd........................... 18,653,250
--------------
47,741,222
--------------
Insurance - 1.6%
302,140 American International Group, Inc................. 33,084,330
--------------
Internet Software &
Services - 1.7%
265,700 * America Online, Inc............................. 17,868,325
94,800 * Yahoo!, Inc. ................................... 16,246,350
--------------
34,114,675
--------------
Leisure Equipment &
Products - 0.2%
71,200 Eastman Kodak Co. ................................ 3,867,050
--------------
Machinery - 0.4%
39,600 Badger Meter, Inc. ............................... 1,435,500
112,200 Illinois Tool Works, Inc. ........................ 6,199,050
--------------
7,634,550
--------------
Media - 8.3%
247,200 CBS Corp.......................................... 13,997,700
217,100 * Clear Channel Communications, Inc............... 14,993,469
144,700 * Cox Communications, Inc., Cl. A................. 7,017,950
1,026,700 Disney (Walt) Co. ................................ 42,479,712
181,700 * Echostar Communications Corp., Cl. A............ 14,354,300
93,600 Gannett Co., Inc.................................. 6,587,100
97,700 * MediaOne Group, Inc............................. 7,913,700
166,700 Seagram Co., Ltd.................................. 9,918,650
473,100 Time Warner, Inc.................................. 47,310,000
127,000 * Viacom, Inc., Cl. B............................. 6,699,250
--------------
171,271,831
--------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Metals & Mining - 0.4%
126,600 Alcoa, Inc........................................ $ 8,893,650
--------------
Multiline Retail - 3.0%
213,400 * Costco Wholesale Corp........................... 11,216,837
109,400 * Kohl's Corp..................................... 11,213,500
8,660 Target Corp....................................... 647,335
686,180 Wal-Mart Stores, Inc.............................. 38,082,990
--------------
61,160,662
--------------
Oil & Gas - 6.9%
152,000 Anadarko Petroleum Corp........................... 5,880,500
110,100 Apache Corp....................................... 5,477,475
158,300 Burlington Resources, Inc. ....................... 5,857,100
202,400 Chevron Corp...................................... 18,709,350
437,800 Conoco, Inc., Cl. B............................... 11,218,625
760,039 Exxon Mobil Corp. ................................ 59,140,535
365,700 Royal Dutch Petroleum Co. ........................ 21,050,606
183,000 Texaco, Inc....................................... 9,813,375
165,100 Unocal Corp. ..................................... 4,911,725
--------------
142,059,291
--------------
Paper & Forest Products - 0.3%
160,900 International Paper Co. .......................... 6,878,475
--------------
Personal Products - 0.2%
122,600 Avon Products, Inc. .............................. 3,563,063
--------------
Pharmaceuticals - 5.5%
240,000 Abbott Laboratories............................... 8,445,000
420,200 American Home Products Corp....................... 22,533,225
233,500 Bristol-Myers Squibb Co. ......................... 13,484,625
222,300 Merck & Co., Inc.................................. 13,810,387
628,600 Pfizer, Inc. ..................................... 22,983,187
184,970 Pharmacia & Upjohn, Inc........................... 10,959,473
217,500 Warner-Lambert Co. ............................... 21,206,250
--------------
113,422,147
--------------
Semiconductor Equipment & Products - 7.9%
195,200 * Applied Materials, Inc.......................... 18,397,600
674,800 Intel Corp. ...................................... 89,031,425
131,700 * LSI Logic Corp.................................. 9,564,712
90,100 * Micron Technology, Inc. ........................ 11,352,600
111,300 * Teradyne, Inc. ................................. 9,154,425
160,000 Texas Instruments, Inc............................ 25,600,000
--------------
163,100,762
--------------
Software - 7.2%
939,000 * Microsoft Corp.................................. 99,768,750
631,200 * Oracle Systems Corp............................. 49,273,050
--------------
149,041,800
--------------
Specialty Retail - 0.9%
20,000 CPI Corp. ........................................ 466,250
275,650 Home Depot, Inc................................... 17,779,425
--------------
18,245,675
--------------
</TABLE>
64
<PAGE>
EVERGREEN
Evergreen Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Wireless Telecommunications Services - 1.8%
143,500 * Nextel Communications, Inc., Cl. A.............. $ 21,273,875
245,800 * Sprint Corp. (PCS Group), Ser. 1................ 16,053,813
--------------
37,327,688
--------------
Total Common Stocks
(cost $1,518,506,007)............................ $2,054,299,658
--------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
REPURCHASE AGREEMENTS - 1.1%
$21,644,000 State Street Bank & Trust Co., 6.05%, purchased
3/31/2000, maturing 4/3/2000,
maturity value $21,654,912 (cost $21,644,000)
(a)............................................ $ 21,644,000
--------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -
(cost $1,540,150,007).................... 100.9% 2,075,943,658
Other Assets and Liabilities - net........ (0.9) (18,052,239)
----- --------------
Net Assets................................ 100.0% $2,057,891,419
===== ==============
</TABLE>
(a) The repurchase agreement is fully collateralized by: $22,325,000 FNMA,
6.000%, 9/24/2001; value including accrued interest $22,092,592.
* Non-income producing security.
Summary of Abbreviations
ADR American Depository Receipt
See Combined Notes to Financial Statements.
65
<PAGE>
EVERGREEN
Growth Fund
Schedule of Investments
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 96.9%
Air Freight & Couriers - 1.4%
63,600 CH Robinson Worldwide............................... $ 2,369,100
195,550 Circle International Group, Inc..................... 5,084,300
45,650 Expeditors International of Washington, Inc......... 1,814,588
------------
9,267,988
------------
Airlines - 1.2%
22,850 * Atlantic Coast Airlines Holdings.................. 591,244
152,075 Mesaba Holdings, Inc................................ 1,739,358
131,450 * Skywest, Inc...................................... 5,142,981
------------
7,473,583
------------
Banks - 1.1%
92,662 Commerce Bancorp, Inc............................... 3,428,494
209,234 National Commerce Bancorp........................... 3,870,829
------------
7,299,323
------------
Biotechnology - 1.9%
10,000 * Affymetrix, Inc. (b).............................. 1,484,375
23,300 * Alkermes, Inc. (b)................................ 2,155,250
28,100 * Cephalon, Inc. (b)................................ 1,053,750
37,800 * Enzon, Inc........................................ 1,424,588
24,200 Genome Therapeutics Corp............................ 570,213
21,200 * Human Genome Sciences, Inc. (b)................... 1,760,925
15,850 * Incyte Pharmaceuticals, Inc....................... 1,385,884
17,300 * Millennium Pharmaceuticals, Inc................... 2,246,837
------------
12,081,822
------------
Commercial Services &
Supplies - 11.9%
175,500 * Acxiom Corp. (b).................................. 5,835,375
138,274 * Concord EFS, Inc.................................. 3,171,660
435,200 * Copart, Inc. ..................................... 7,616,000
128,100 * CSG Systems International, Inc.................... 6,252,881
87,600 * CTC Communications Group, Inc..................... 3,733,950
269,425 * Dendrite International, Inc....................... 5,641,086
34,800 Factset Research Systems, Inc....................... 941,775
59,300 * Forrester Research, Inc........................... 3,217,025
87,150 * Hall Kinion & Associates, Inc. (b)................ 2,097,047
169,600 * Heidrick & Struggles International, Inc........... 6,805,200
64,750 * IXL Enterprises, Inc. (b)......................... 1,813,000
123,000 * Management Network Group, Inc. (b)................ 3,313,313
135,600 * Manhattan Assocs, Inc............................. 4,644,300
246,850 * Meta Group Inc.................................... 6,433,528
304,950 * Newgen Results Corp............................... 4,650,487
122,172 * Nova Corp......................................... 3,558,259
150,950 * Prosoft Training.com.............................. 3,405,809
136,350 The Intercept Group Inc............................. 3,511,013
------------
76,641,708
------------
Communications Equipment - 7.1%
106,700 * Advanced Fibre Communications, Inc................ 6,688,756
42,000 * Alteon Websystems, Inc. (b)....................... 3,444,000
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Communications
Equipment - continued
21,100 * Brocade Communications Systems, Inc............... $ 3,783,494
194,350 Commscope, Inc...................................... 8,867,219
188,150 * Digital Microwave Corp............................ 6,373,581
37,550 * Extreme Networks, Inc. (b)........................ 2,966,450
15,150 * Harmonic Lightwaves, Inc. (b)..................... 1,261,237
83,950 * Polycom, Inc...................................... 6,647,791
38,900 * Powerwave Technologies, Inc....................... 4,862,500
19,250 * Radvision Ltd..................................... 1,008,219
------------
45,903,247
------------
Computers & Peripherals - 1.1%
203,650 * Corsair Communications, Inc....................... 3,894,806
23,300 * QLogic Corp....................................... 3,157,150
25 * Radisys Corp. (b)................................. 1,503
------------
7,053,459
------------
Construction &
Engineering - 1.2%
152,450 * Dycom Industries, Inc. (b)........................ 7,431,938
------------
Distributors - 3.8%
86,750 * Black Box Corp. (b)............................... 6,006,082
232,950 * Kent Electronics Corp............................. 6,799,228
334,800 * Metron Tech....................................... 7,030,800
152,625 * SCP Pool Corp..................................... 4,674,141
------------
24,510,251
------------
Diversified Financials - 2.3%
180,450 * Hanover Compressor Co. (b)........................ 10,263,094
227,150 * RentWay, Inc. (b)................................. 4,429,425
------------
14,692,519
------------
Diversified Telecommunication Services - 5.2%
74,200 * Choice One Communications, Inc.................... 2,634,100
15,150 * Clarent Corp...................................... 1,366,341
24,350 * Efficient Networks, Inc. (b)...................... 3,792,513
55,300 * Intermedia Communications, Inc. (b)............... 2,671,681
147,650 * ITC DeltaCom, Inc. (b)............................ 5,260,031
86,050 * Microcell Telecommunications...................... 3,818,469
49,300 * Pinnacle Holdings, Inc............................ 2,723,825
90,200 * Primus Telecomm Group, Inc. (b)................... 4,662,212
87,550 * Time Warner Telecom, Inc. (b)..................... 6,960,225
------------
33,889,397
------------
Electrical Equipment - 2.0%
121,850 C&D Technologies.................................... 7,189,150
91,150 * Power One, Inc.................................... 5,503,181
------------
12,692,331
------------
Electronic Equipment & Instruments - 9.2%
233,250 * Benchmark Electronics, Inc. (b)................... 8,630,250
140,100 * Burr-Brown Corp................................... 7,617,937
64,050 * Kemet Corp........................................ 4,051,163
</TABLE>
66
<PAGE>
EVERGREEN
Growth Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Electronic Equipment & Instruments - continued
80,400 Methode Electronics, Inc............................ $ 4,060,200
68,400 * Mettler Toledo International, Inc................. 2,800,125
181,900 * Oak Technology (b)................................ 3,501,575
261,400 * Parlex Corp....................................... 7,972,700
41,050 * Sandisk Corp...................................... 5,028,625
380,150 Sensormatic Electronics Corp. (b)................... 8,529,616
212,000 * Sipex Corp........................................ 7,486,250
------------
59,678,441
------------
Energy Equipment &
Services - 4.5%
269,700 * Core Laboratories, NV............................. 7,838,156
227,350 * Global Industries, Ltd............................ 3,324,994
293,200 * Gulf Islands Fabrication, Inc..................... 4,288,050
180,800 * Precision Drilling Corp........................... 6,034,200
335,850 * Pride International, Inc. (b)..................... 7,661,578
------------
29,146,978
------------
Food Products - 0.5%
227,550 * NBTY, Inc......................................... 3,114,591
------------
Health Care Equipment & Supplies - 2.3%
45,400 * Biomatrix, Inc. (b)............................... 1,157,700
88,700 Cooper Companies Inc................................ 2,855,031
35,200 * Cytyc Corp........................................ 1,698,400
113,600 * Endocare, Inc..................................... 2,172,600
28,000 * Molecular Devices Corp............................ 2,149,000
19,200 * Resmed, Inc. (b).................................. 1,370,400
72,250 * Zoll Med Corp..................................... 3,702,813
------------
15,105,944
------------
Health Care Providers &
Services - 5.5%
5,600 * Accredo Health, Inc. (b).......................... 185,500
182,850 Bindley Western Industries, Inc..................... 2,479,903
226,100 * Brookdale Living Communities, Inc................. 2,501,231
158,750 Hooper Holmes, Inc.................................. 5,447,109
112,700 * Lincare Holdings, Inc............................. 3,197,863
260,300 * Orthodontic Centers America, Inc. (b)............. 4,880,625
62,700 * Priority Healthcare Corp., Cl. B.................. 3,150,675
184,650 * Province Healthcare Co............................ 5,285,606
18,800 * Trizetto Group, Inc. (b).......................... 654,475
94,900 Universal Health Services, Inc. Cl. B............... 4,650,100
60,400 * Visual Networks, Inc.............................. 3,427,700
------------
35,860,787
------------
Hotels Restaurants &
Leisure - 0.6%
211,850 Ruby Tuesday, Inc................................... 3,707,375
------------
Insurance - 0.7%
29,510 * Markel Corp. (b).................................. 4,293,705
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Internet Software &
Services - 0.6%
76,550 * Accrue Software, Inc. (b)......................... $ 3,505,751
22,800 Firstworld Communications, Inc. (b)................. 464,550
------------
3,970,301
------------
Leisure Equipment &
Products - 0.6%
183,174 * Jakks Pacific, Inc................................ 3,949,689
------------
Machinery - 2.6%
256,250 * Maverick Tube Corp................................ 8,312,109
238,050 * Shaw Group, Inc................................... 8,391,263
------------
16,703,372
------------
Media - 3.2%
64,200 * Acme Communications, Inc.......................... 1,468,575
55,900 * Cox Radio, Inc. Cl. A............................. 4,695,600
198,250 * Imax Corp. (b).................................... 4,274,766
42,700 * Netratings, Inc................................... 1,064,831
50,000 * Radio One, Inc.................................... 3,331,250
90,900 * SFX Entertainment, Inc. (b)....................... 3,709,856
122,100 * World Wrestling Federation Entertainment, Inc..... 2,165,367
------------
20,710,245
------------
Multiline Retail - 1.6%
92,225 * Dollar Tree Stores, Inc. (b)...................... 4,807,228
276,750 Family Dollar Stores, Inc........................... 5,759,859
------------
10,567,087
------------
Office Electronics - 0.6%
72,250 * Manugistics Group, Inc............................ 3,630,563
------------
Oil & Gas - 0.5%
98,550 * Louis Dreyfus Natural Gas Corp.................... 3,350,700
------------
Pharmaceuticals - 2.0%
33,000 Biotech Holders Trust (b)........................... 5,593,500
59,625 * King Pharmaceuticals, Inc. (b).................... 1,878,187
132,700 * Medicis Pharmaceutical Corp....................... 5,308,000
------------
12,779,687
------------
Road & Rail - 0.8%
217,750 * Forward Air Corp.................................. 5,157,953
------------
Semiconductor Equipment & Products - 12.3%
171,100 * Actel Corp........................................ 6,106,131
54,350 Alpha Industries, Inc............................... 5,163,250
19,600 * Applied Micro Circuits Corp....................... 2,941,225
81,800 * Asyst Technologies, Inc........................... 4,785,300
137,000 * Atmel Corp........................................ 7,072,625
174,950 * ATMI, Inc......................................... 8,353,862
343,100 * Cerprobe Corp..................................... 5,125,056
128,950 Cohu Inc............................................ 5,375,603
106,350 * Cypress Semiconductor Corp........................ 5,244,384
29,850 * Elantec Semiconductor, Inc........................ 2,195,841
47,950 * Exar Corp......................................... 3,431,422
45,400 * Hi/Fn, Inc. (b)................................... 2,953,838
</TABLE>
67
<PAGE>
EVERGREEN
Growth Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Semiconductor Equipment & Products - continued
162,150 * International Rectifier Corp...................... $ 6,181,969
46,050 * Micrel, Inc....................................... 4,420,800
92,250 * MKS Instruments, Inc.............................. 4,658,625
65,800 * PRI Automation, Inc. (b).......................... 4,022,025
53,000 * Therma-Wave, Inc.................................. 1,802,000
------------
79,833,956
------------
Software - 6.3%
31,900 * Aspect Development, Inc........................... 2,053,563
58,650 * Datastream Systems, Inc. (b)...................... 1,700,850
242,800 * Edwards (J.D.) & Co. (b).......................... 7,906,175
170,300 Moldflow Corp. (b).................................. 2,884,456
377,150 * Network Associates, Inc........................... 12,163,087
52,200 * New Era of Networks, Inc. (b)..................... 2,048,850
172,500 * Novadigm, Inc..................................... 2,803,125
77,900 * Packeteer, Inc. (b)............................... 2,726,500
124,100 * Remedy Corp....................................... 5,227,713
119,900 * Telemate Net Software, Inc........................ 1,438,800
------------
40,953,119
------------
Specialty Retail - 1.3%
75,300 * Linens 'n Things, Inc............................. 2,579,025
194,050 * Men's Wearhouse, Inc.............................. 5,748,731
------------
8,327,756
------------
Transportation
Infrastructure - 0.3%
122,750 * Carey International, Inc.......................... 2,086,750
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Wireless Telecommunications Services - 0.7%
42,100 * Airgate PCS, Inc................................. $ 4,441,550
------------
Total Common Stocks
(cost $440,857,072)............................... 626,308,115
------------
SHORT-TERM INVESTMENTS - 17.1%
Mutual Fund Shares - 14.0%
90,748,384 Navigator Prime Portfolio
(cost $90,748,384) (c)............................ 90,748,384
------------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
Repurchase Agreement - 3.1%
20,166,994 State Street Bank & Trust Co. 6.05%, purchased
3/31/2000, maturing 4/3/2000, maturity value
$20,177,162
(cost $20,166,994) (a)............................ 20,166,994
------------
Total Short-Term Investments
(cost $110,915,378)............................... 110,915,378
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments
(cost $551,772,450)........................ 114.0% 737,223,493
Other Assets and
Liabilities - net.......................... (14.0) (90,712,723)
----- ------------
Net Assets.................................. 100.0% $646,510,770
===== ============
</TABLE>
(a) The repurchase agreement is fully collateralized by: $20,895,000 FNMA,
6.00%, 6/29/2000; value including accrued interest $20,581,295.
(b) All or a portion of this security is on loan.
(c) Represents investment in cash collateral received for securities on loan.
* Non-income producing security.
See Combined Notes to Financial Statements.
68
<PAGE>
EVERGREEN
Masters Fund
Schedule of Investments
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 98.1%
Aerospace & Defense - 0.3%
18,300 Boeing Co............................................ $ 694,256
3,000 General Dynamics Corp................................ 149,250
700 Northrop Grumman Corp................................ 37,056
300 Perkinelmer, Inc..................................... 19,950
600 United Technologies Corp............................. 37,913
------------
938,425
------------
Airlines - 0.7%
3,000 * Alaska Air Group, Inc.............................. 90,187
3,000 * Continental Airlines, Inc., Cl. B.................. 122,625
1,600 Delta Air Lines, Inc................................. 85,200
300 Northwest Airlines Corp., Cl. A...................... 6,788
50,000 * Skywest, Inc....................................... 1,956,250
------------
2,261,050
------------
Auto Components - 0.2%
2,400 Arvin Industries, Inc................................ 54,300
200 * Canandaigua Wine Co., Inc.......................... 10,200
1,000 Cooper Tire & Rubber Co.............................. 12,563
5,900 Delphi Automotive Systems Corp....................... 94,400
1,600 Eaton Corp........................................... 124,800
800 Johnson Controls, Inc................................ 43,250
1,700 Meritor Automotive, Inc.............................. 26,881
1,000 SPX Corp. ........................................... 113,937
700 TRW, Inc............................................. 40,950
------------
521,281
------------
Automobiles - 0.1%
3,800 General Motors Corp. ................................ 314,687
900 Harley-Davidson, Inc. ............................... 71,438
------------
386,125
------------
Banks - 2.8%
11,970 Associated Banc Corp. ............................... 357,604
29,600 Charter One Financial, Inc. ......................... 621,600
2,200 Chase Manhattan Corp. ............................... 191,812
1,000 Dime Bancorp, Inc. .................................. 18,500
9,700 Fifth Third Bancorp.................................. 611,100
27,500 First Security Corp. ................................ 330,000
24,300 Firstar Corp. ....................................... 557,381
53,298 FleetBoston Financial Corp. ......................... 1,945,377
6,600 * Golden St. Bancorp, Inc. .......................... 98,588
1,000 Golden West Financial Corp. ......................... 31,188
2,600 Greenpoint Financial Corp. .......................... 51,025
55,000 Huntington Bancshares, Inc. ......................... 1,230,625
10,000 KeyCorp.............................................. 190,000
1,530 M&T Bank Corp. ...................................... 683,145
7,200 Marshall & Ilsley Corp. ............................. 415,800
1,100 Mellon Financial Corp. .............................. 32,450
20,190 North Fork Bancorp, Inc. ............................ 360,896
3,200 Northern Trust Corp. ................................ 216,200
1,760 Old Kent Financial Corp. ............................ 56,870
2,900 PNC Bank Corp. ...................................... 130,681
18,900 SouthTrust Corp. .................................... 480,769
700 Wachovia Corp. ...................................... 47,294
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Banks - continued
2,090 Washington Federal, Inc. ............................ $ 39,841
1,700 Webster Financial Corp. ............................. 39,100
5,600 Wells Fargo Co. ..................................... 229,250
4,500 Zions Bancorp........................................ 187,312
------------
9,154,408
------------
Beverages - 0.2%
9,700 Anheuser Busch Companies, Inc. ...................... 603,825
1,000 Coors Adolph Co., Cl. B.............................. 47,813
------------
651,638
------------
Biotechnology - 1.9%
23,600 * Amgen, Inc. ....................................... 1,448,450
2,200 * Biogen, Inc. ...................................... 153,725
27,700 Chiron Corp. ........................................ 1,381,538
3,200 Genetech, Inc. ...................................... 486,400
77,800 * Idexx Laboratories, Inc. .......................... 1,813,712
9,900 * Immunex Corp. ..................................... 628,031
1,000 * MedImmune, Inc. ................................... 174,125
2,000 * Millennium Pharmaceuticals, Inc. .................. 259,750
------------
6,345,731
------------
Building Products - 0.0%
3,600 * American Standard Companies, Inc. ................. 133,200
800 Masco Corp. ......................................... 16,400
600 York International Corp. ............................ 14,025
------------
163,625
------------
Chemicals - 0.9%
1,700 Dexter Corp. ........................................ 90,100
3,300 Dow Chemical Co. .................................... 376,200
13,200 DuPont (E.I.) De Nemours & Co. ...................... 697,950
500 Ecolab, Inc. ........................................ 18,344
800 Engelhard Corp. ..................................... 12,100
400 PPG Industries, Inc. ................................ 20,925
21,800 Praxair, Inc. ....................................... 907,425
2,100 Rohm & Haas Co. ..................................... 93,712
2,200 Schulman (A.), Inc. ................................. 29,150
1,400 Sherwin Williams Co. ................................ 30,713
3,500 Union Carbide Corp. ................................. 204,094
15,000 Valspar Corp. ....................................... 574,687
------------
3,055,400
------------
Commercial Services &
Supplies - 6.6%
12,000 ACNielsen Corp. ..................................... 270,000
12,200 * Affiliated Computer Services, Inc., Cl. A.......... 463,600
4,600 Automatic Data Processing, Inc. ..................... 221,950
8,700 Avery Dennison Corp. ................................ 531,244
33,000 * Cadence Design Systems, Inc. ...................... 684,750
2,500 * CDI Corp. ......................................... 47,500
12,600 Checkfree Holdings Corp. ............................ 888,300
15,810 Collectors Universe, Inc. ........................... 102,765
25,000 * Computer Sciences Corp. ........................... 1,978,125
45,200 Concord EFS, Inc. ................................... 1,036,775
</TABLE>
69
<PAGE>
EVERGREEN
Masters Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Commercial Services &
Supplies - continued
9,200 * CSG Systems International, Inc..................... $ 449,075
1,000 Deluxe Corp.......................................... 26,500
15,700 * DST Systems, Inc................................... 1,019,519
1,000 Dun & Bradstreet Corp. .............................. 28,625
11,000 Electronic Data Systems Corp. ....................... 706,062
25,000 Fair Issac & Co., Inc. .............................. 971,875
4,700 First Data Corp. .................................... 207,975
91,050 * Fiserv, Inc. ...................................... 3,385,922
2,200 H&R Block, Inc. ..................................... 98,450
50,300 Harbinger Corp. ..................................... 1,464,987
2,000 John H. Harland Co. ................................. 27,000
600 * Keane, Inc. ....................................... 15,150
600 * Learning Tree International, Inc. ................. 21,300
300 McGraw-Hill Companies, Inc. ......................... 13,650
6,230 Miller (Herman), Inc. ............................... 174,440
38,600 National Data Corp. ................................. 1,003,600
95,200 * Nova Corp. ........................................ 2,772,700
1,900 Paychex, Inc. ....................................... 99,513
1,300 * Sabre Group Holdings, Inc. Cl. A................... 48,019
37,000 * SunGard Data Systems, Inc. ........................ 1,396,750
26,840 Switchboard, Inc. ................................... 922,625
16,500 The Intercept Group Inc. ............................ 424,875
------------
21,503,621
------------
Communications Equipment - 6.3%
4,800 * 3Com Corp. ........................................ 267,000
1,000 * Adaptec, Inc. ..................................... 38,625
34,300 * American Tower Systems Corp., Cl. A................ 1,693,562
32,725 Ancor Communications, Inc. .......................... 1,345,816
2,200 Brocade Communications Systems, Inc. ................ 394,488
3,300 * Cabletron Systems, Inc. ........................... 96,731
81,000 * Cisco Systems, Inc. ............................... 6,262,312
900 Commscope, Inc. ..................................... 41,063
19,700 * Computer Network Technology........................ 344,750
2,600 * Comverse Technology, Inc. ......................... 491,400
4,300 Corning, Inc. ....................................... 834,200
4,000 Emulex Corp. ........................................ 436,500
10,600 * Harmonic Lightwaves, Inc. ......................... 882,450
17,100 * MMC Networks, Inc. ................................ 564,300
17,637 Motorola, Inc. ...................................... 2,511,068
7,000 Nokia Corp., ADR..................................... 1,520,750
10,800 Nortel Networks Corp. ............................... 1,360,800
8,500 * Qualcomm, Inc. .................................... 1,269,156
2,600 * Tellabs, Inc. ..................................... 163,759
1,000 * Xircom, Inc. ...................................... 37,000
------------
20,555,730
------------
Computers & Peripherals - 4.9%
8,900 * Apple Computer..................................... 1,208,731
17,700 * Dell Computer Corp. ............................... 954,694
2,000 * Electronics for Imaging, Inc. ..................... 120,000
8,700 * EMC Corp. ......................................... 1,087,500
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Computers &
Peripherals - continued
2,900 * Gateway, Inc. ..................................... $ 153,700
4,400 Hewlett-Packard Co. ................................. 583,275
18,100 International Business Machines Corp. ............... 2,135,800
5,100 * Lexmark Intl. Group, Inc., Cl. A................... 539,325
20,000 * Micros Systems, Inc. .............................. 1,258,750
10,100 * NCR Corp. ......................................... 405,262
2,000 * QLogic Corp. ...................................... 271,000
900 Quantum Corp. ....................................... 10,744
57,400 * Seagate Technology................................. 3,458,350
21,900 * Sun Microsystems, Inc. ............................ 2,052,098
700 Symbol Technologies, Inc. ........................... 57,619
32,800 * Zebra Technologies Corp., Cl. A.................... 1,640,000
------------
15,936,848
------------
Construction & Engineering - 0.0%
4,800 Spectrasite Holdings, Inc. .......................... 135,900
------------
Construction Materials - 0.2%
12,900 Centex Construction Products, Inc. .................. 338,625
4,000 Johns Manville Corp. ................................ 44,000
1,000 Southdown, Inc. ..................................... 59,000
3,725 United States Aggregates, Inc. ...................... 53,547
600 Vulcan Materials Co. ................................ 27,487
------------
522,659
------------
Containers & Packaging - 1.0%
1,000 Ball Corp. .......................................... 34,562
600 Bemis Co., Inc. ..................................... 22,125
2,400 * Pactiv Corp. ...................................... 21,000
16,900 * Sealed Air Corp. .................................. 917,881
137,700 * Smurfit Container Corp. ........................... 2,332,294
400 Temple Inland, Inc. ................................. 19,925
------------
3,347,787
------------
Distributors - 0.4%
1,000 Hughes Supply, Inc. ................................. 15,500
21,800 W.W. Grainger, Inc. ................................. 1,182,650
------------
1,198,150
------------
Diversified Financials - 5.3%
7,700 American Express Co. ................................ 1,146,819
4,300 * Avis Rent-A-Car, Inc. ............................. 75,787
4,000 AXA Financial, Inc. ................................. 143,500
900 Bear Stearns Companies, Inc. ........................ 41,063
61,000 Citigroup, Inc. ..................................... 3,618,062
15,900 Comdisco, Inc. ...................................... 701,587
87,500 Edwards (A.G.), Inc. ................................ 3,500,000
800 Federal Home Loan Mtge. Assn. ....................... 35,350
1,800 Fortune Brands, Inc. ................................ 45,000
39,300 General Electric Co. ................................ 6,098,869
1,200 Hertz Corp., Cl. A .................................. 40,875
500 Household International, Inc. ....................... 18,656
1,500 Lehman Brothers Holdings, Inc. ...................... 145,500
13,600 Morgan Stanley, Dean Witter & Co. ................... 1,109,250
</TABLE>
70
<PAGE>
EVERGREEN
Masters Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Diversified Financials - continued
4,100 Rollins Truck Leasing Corp. ......................... $ 34,594
10,700 Schwab (Charles) & Co., Inc. ........................ 607,894
2,400 Xtra Corp. .......................................... 91,200
------------
17,454,006
------------
Diversified Telecommunication Services - 4.3%
12,200 ALLTEL Corp. ........................................ 769,362
26,600 AT&T Corp. .......................................... 1,496,250
31,400 * AT&T Corp. Liberty Media Group, Cl. A.............. 1,860,450
6,800 Bell Atlantic Corp. ................................. 415,650
20,000 BellSouth Corp. ..................................... 940,000
56,100 * Global Crossing, Ltd. ............................. 2,296,594
5,000 GTE Corp. ........................................... 355,000
4,000 * ICG Communications, Inc. .......................... 144,500
46,500 * Intermedia Communications, Inc. ................... 2,246,531
8,700 * MGC Communications, Inc. .......................... 622,050
350 Net2000 Communication Inc. .......................... 8,313
5,300 * Pinnacle Holdings, Inc. ........................... 292,825
27,900 Sprint Corp. ........................................ 1,757,700
3,200 Telephone & Data Systems, Inc. ...................... 355,200
3,400 * Time Warner Telecom, Inc. ......................... 270,300
3,700 U.S. West, Inc. ..................................... 268,712
------------
14,099,437
------------
Electric Utilities - 1.6%
13,000 Allegheny Energy, Inc. .............................. 358,312
1,200 Ameren Corp. ........................................ 37,125
7,060 * Calpine Corp. ..................................... 663,640
500 Consolidated Edison, Inc. ........................... 14,500
500 Constellation Energy Group, Inc. .................... 15,938
2,000 Dominion Resources, Inc. ............................ 76,875
4,900 DQE, Inc. ........................................... 222,950
1,300 DTE Energy Co. ...................................... 37,700
1,100 Duke Energy Corp. ................................... 57,750
15,910 Dynegy Inc. ......................................... 998,352
5,000 Energy East Corp. ................................... 99,063
2,400 Entergy Corp. ....................................... 48,450
2,900 FirstEnergy Corp. ................................... 59,813
2,800 Florida Progress Corp. .............................. 128,450
900 FPL Group, Inc. ..................................... 41,456
1,100 GPU, Inc. ........................................... 30,113
2,000 Ipalco Enterprises................................... 39,000
15,500 Montana Power Co. ................................... 992,000
500 Northeast Utilities.................................. 10,750
3,600 Oge Energy Corp. .................................... 69,075
4,100 PECO Energy Co. ..................................... 151,187
2,500 PPL Corp. ........................................... 52,344
4,500 Public Service Enterprise Group, Inc. ............... 133,312
300 Reliant Energy, Inc. ................................ 7,031
3,200 Southern Co. ........................................ 69,600
1,800 Texas Utilities Co. ................................. 53,438
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Electric Utilities - continued
2,900 TNP Enterprises, Inc. ............................... $ 127,056
3,600 Unicom Corp. ........................................ 131,400
20,300 UtiliCorp United, Inc. .............................. 366,669
------------
5,093,349
------------
Electrical Equipment - 1.2%
72,500 * Cable Design Technologies Corp. ................... 2,460,469
1,300 Cooper Industries, Inc. ............................. 45,500
4,200 Emerson Electric Co. ................................ 222,075
375 Molex, Inc. ......................................... 16,640
40,000 Thomas & Betts Corp. ................................ 1,130,000
------------
3,874,684
------------
Electronic Equipment & Instruments - 3.1%
500 AVX Corp. ........................................... 37,906
19,700 * Hadco Corp. ....................................... 1,273,112
9,400 * JDS Uniphase Corp. ................................ 1,133,288
7,200 Rockwell International Corp. ........................ 301,050
65,200 RSA Security, Inc. .................................. 3,378,175
6,300 Sawtek, Inc. ........................................ 331,144
26,600 * SCI Systems, Inc. ................................. 1,431,412
53,500 * Sipex Corp. ....................................... 1,889,219
7,500 * Solectron Corp. ................................... 300,469
600 * Waters Corp. ...................................... 57,150
------------
10,132,925
------------
Energy Equipment &
Services - 6.2%
16,400 * BJ Services Co., Inc. ............................. 1,211,550
7,300 * Cooper Cameron Corp. .............................. 488,188
56,400 Diamond Offshore Drilling, Inc. ..................... 2,252,475
13,000 ENSCO International, Inc. ........................... 469,625
203,200 * Global Industries, Ltd. ........................... 2,971,800
45,400 * Global Marine, Inc. ............................... 1,152,025
6,000 * Nabors Industries, Inc. ........................... 232,875
110,300 * Noble Drilling Corp. .............................. 4,570,556
900 * Rowan Companies, Inc. ............................. 26,494
4,700 Santa Fe International Corp. ........................ 173,900
112,400 Transocean Sedco Forex, Inc. ........................ 5,767,525
14,200 * Weatherford International, Inc. ................... 836,912
------------
20,153,925
------------
Food & Drug Retailing - 1.8%
1,300 Albertsons, Inc. .................................... 40,300
10,500 CVS Corp. ........................................... 394,406
275,100 * Kroger Co. ........................................ 4,831,444
12,100 SYSCO Corp. ......................................... 431,819
1,600 Walgreen Co. ........................................ 41,200
------------
5,739,169
------------
Food Products - 1.2%
1,500 * Agribrands International, Inc. .................... 58,969
1,200 Conagra, Inc. ....................................... 21,750
1,900 Corn Products International, Inc. ................... 45,719
215,700 * Del Monte Foods Co. ............................... 2,305,294
</TABLE>
71
<PAGE>
EVERGREEN
Masters Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Food Products - continued
1,500 IBP, Inc. ........................................... $ 23,625
28,700 * Keebler Foods Co................................... 823,331
10,000 Quaker Oats Co....................................... 606,250
900 Ralston Purina Co.................................... 24,637
------------
3,909,575
------------
Gas Utilities - 0.4%
700 Coastal Corp......................................... 32,200
19,000 Enron Corp........................................... 1,422,625
200 NICOR, Inc........................................... 6,588
------------
1,461,413
------------
Health Care Equipment &
Supplies - 3.2%
16,400 * Alza Corp.......................................... 616,025
210 Aspect Med Systems, Inc.............................. 7,534
23,000 Beckman Coulter, Inc................................. 1,476,312
900 Biomet, Inc.......................................... 32,738
69,300 * Cytyc Corp. ....................................... 3,343,725
3,200 PE Corp-PE Biosystems Group.......................... 308,800
11,300 * Steris Corp. ...................................... 115,825
300 SuperValu, Inc. ..................................... 5,681
245,300 * VISX, Inc. ........................................ 4,476,725
------------
10,383,365
------------
Health Care Providers &
Services - 1.1%
1,000 Andrx Corp........................................... 115,500
145,800 * Health Management Associates, Inc., Cl. A.......... 2,077,650
12,000 IMS Health, Inc...................................... 203,250
14,100 * Lincare Holdings, Inc. ............................ 400,087
300 Pacificare Health Systems, Inc., Cl. A............... 14,963
100 Shared Medical System Corp........................... 5,188
170,100 * Total Renal Care Holdings, Inc..................... 531,562
1,100 Trigon Healthcare, Inc............................... 39,325
3,500 United Healthcare Corp............................... 208,687
------------
3,596,212
------------
Hotels Restaurants &
Leisure - 0.5%
11,200 Brinker International, Inc. ......................... 332,500
2,000 Darden Restaurants, Inc. ............................ 35,625
14,500 Harrahs Entertainment, Inc. ......................... 269,156
700 Marriott International, Inc., Cl. A.................. 22,050
2,088 MGM Grand, Inc....................................... 50,112
50,600 Park Place Entertainment Corp. ...................... 585,063
1,900 Ruby Tuesday, Inc. .................................. 33,250
4,000 * Ryan's Family Steak Houses, Inc. .................. 38,250
2,500 * Tricon Global Restaurants, Inc. ................... 77,656
3,200 Wendy's International, Inc. ......................... 64,600
------------
1,508,262
------------
Household Durables - 0.8%
500 Briggs & Stratton Corp. ............................. 20,563
18,610 Clayton Homes, Inc. ................................. 188,426
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Household Durables - continued
1,900 Del Webb Corp. ...................................... $ 28,144
45,000 Ethan Allen Interiors, Inc........................... 1,125,000
5,000 La-Z-Boy Chair Co.................................... 76,875
21,900 Leggett & Platt, Inc................................. 470,850
41,400 * Lo-Jack Corp. ..................................... 320,850
2,000 * Mohawk Industries, Inc............................. 44,750
2,200 * NVR, Inc. ......................................... 118,800
2,000 Ryland Group, Inc.................................... 37,500
10,700 * Shaw Industries, Inc............................... 162,506
600 Snap-on, Inc......................................... 15,713
1,900 WestPoint Stevens, Inc............................... 36,100
1,900 Whirlpool Corp....................................... 111,387
------------
2,757,464
------------
Household Products - 0.0%
300 American Greetings Corp., Cl. A...................... 5,475
------------
Industrial Conglomerates - 1.4%
500 Danaher Corp......................................... 25,500
3,400 Dover Corp........................................... 162,775
12,150 Honeywell International, Inc. ....................... 640,153
3,500 Mark IV Industries, Inc. ............................ 77,219
6,000 Minnesota Mining & Manufacturing Co. ................ 531,375
6,440 Teleflex, Inc. ...................................... 228,620
57,100 Tyco International, Ltd. ............................ 2,847,862
------------
4,513,504
------------
Insurance - 1.9%
2,000 AFLAC, Inc. ......................................... 91,125
9,140 Allmerica Financial Corp. ........................... 466,140
3,700 Allstate Corp. ...................................... 88,106
13,790 AMBAC Finl. Group, Inc. ............................. 694,671
300 American General Corp. .............................. 16,838
14,200 American International Group, Inc. .................. 1,554,900
6,000 CIGNA Corp. ......................................... 454,500
900 Cincinnati Financial Corp. .......................... 33,863
3,000 Financial Security Assured Holdings Ltd. ............ 220,312
2,100 Hartford Life, Inc., Cl. A........................... 98,437
2,700 Jefferson Pilot Corp. ............................... 179,719
2,300 Lincoln National Corp. .............................. 77,050
1,300 Loews Corp. ......................................... 65,000
8,870 MBIA, Inc. .......................................... 461,794
1,700 MGIC Investment Corp. ............................... 74,163
12,770 Partnerre Ltd. ...................................... 470,096
4,050 PMI Group, Inc. ..................................... 192,122
400 Progressive Corp. ................................... 30,425
266 Radian Group, Inc. .................................. 12,668
11,800 ReliaStar Financial Corp. ........................... 399,725
500 St. Paul Companies, Inc. ............................ 17,063
8,870 XL Capital Ltd., Cl. A............................... 491,176
------------
6,189,893
------------
</TABLE>
72
<PAGE>
EVERGREEN
Masters Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Internet & Catalog Retail - 0.0%
600 Lands' End, Inc. .................................... $ 36,900
300 Valuevision International, Inc. ..................... 12,413
------------
49,313
------------
Internet Software &
Services - 2.4%
11,600 * America Online, Inc. .............................. 780,100
500 Ariba, Inc. ......................................... 104,813
11,640 Chordiant Software, Inc. ............................ 189,150
5,700 Cnet Networks, Inc. ................................. 288,919
450 Digitas, Inc. ....................................... 11,025
110 Eprise Corp. ........................................ 1,733
120 Fairmarket........................................... 2,730
230 Firstworld Communications............................ 4,686
80 Integrated Information Systems, Inc. ................ 1,744
90 Loudeye Technologies, Inc. .......................... 3,139
20 Net Genesis Corp. ................................... 895
23,800 Network Solutions, Inc., Cl. A....................... 3,658,134
27,900 Netzee, Inc. ........................................ 415,012
18,216 S1 Corp. ............................................ 1,560,883
220 * Selectica, Inc. ................................... 19,415
1,700 VeriSign, Inc. ...................................... 254,150
3,200 * Yahoo!, Inc. ...................................... 548,400
------------
7,844,928
------------
Leisure Equipment &
Products - 0.1%
3,600 Brunswick Corp. ..................................... 68,175
3,600 Eastman Kodak Co. ................................... 195,525
400 Hasbro, Inc. ........................................ 6,600
------------
270,300
------------
Machinery - 0.5%
107,400 AGCO Corp. .......................................... 1,221,675
1,100 Caterpillar, Inc. ................................... 43,381
200 Cummins Engine, Inc. ................................ 7,513
1,500 Illinois Tool Works, Inc. ........................... 82,875
300 * Navistar International Corp., Inc. ................ 12,038
200 Paccar, Inc. ........................................ 10,000
1,300 Parker Hannifin Corp. ............................... 53,706
2,700 Reliance Steel & Aluminum Co. ....................... 60,412
2,200 * Tower Automotive, Inc. ............................ 36,025
------------
1,527,625
------------
Marine - 0.1%
2,100 * SEACOR SMIT, Inc. ................................. 126,788
10,500 Tidewater, Inc. ..................................... 334,031
------------
460,819
------------
Media - 4.3%
12,060 Be Free, Inc. ....................................... 265,320
19,440 * CBS Corp. ......................................... 1,100,790
800 Central Newspapers, Inc., Cl. A...................... 26,900
12,900 * Clear Channel
Communications, Inc. ............................... 890,906
25,800 Comcast Corp., Cl. A................................. 1,119,075
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Media - continued
2,000 * Cox Communications, Inc., Cl. A.................... $ 97,000
600 Dow Jones & Co., Inc................................. 43,088
4,800 Echostar Communications Corp., Cl. A................. 379,200
4,100 Gannett Co., Inc..................................... 288,538
2,000 Harte-Hanks, Inc..................................... 45,375
12,900 * Hearst-Argyle Television, Inc...................... 301,537
600 * Infinity Broadcasting Corp......................... 19,425
17,800 Interpublic Group of Companies,
Inc. ............................................... 841,050
1,100 Knight-Ridder, Inc................................... 56,031
1,000 McClatchy Co., Cl. A................................. 32,750
14,000 New York Times Co., Cl. A............................ 601,125
4,000 Omnicom Group, Inc. ................................. 373,750
3,500 Reader's Digest Association, Inc., Cl. A............. 123,813
3,100 RH Donnelley Corp. .................................. 52,700
27,000 * Scholastic Corp. .................................. 1,456,312
3,100 * Sinclair Broadcast Group, Inc., Cl. A.............. 27,706
500 Snyder Communications, Inc. ......................... 11,250
300 * Spanish Broadcasting System, Inc., Cl. A........... 7,036
60,200 * SportsLine USA, Inc................................ 1,772,137
26,100 Time Warner, Inc. ................................... 2,610,000
900 Times Mirror Co., Ser. A............................. 83,644
3,200 Tribune Co. ......................................... 117,000
7,200 * USA Networks, Inc. ................................ 162,450
1,000 * Valassis Communications, Inc. ..................... 33,313
22,900 * Viacom, Inc., Cl. B................................ 1,207,975
1,100 Young & Rubicam, Inc. ............................... 51,700
------------
14,198,896
------------
Metals & Mining - 0.1%
900 AK Steel Holding Corp. .............................. 9,338
600 Alcan Aluminum, Ltd. ................................ 20,325
4,600 Alcoa, Inc. ......................................... 323,150
2,200 Inco, Ltd. .......................................... 40,287
1,000 Nucor Corp. ......................................... 50,000
2,000 Ryerson Tull, Inc. .................................. 31,000
400 Worthington Industries, Inc. ........................ 4,950
------------
479,050
------------
Multiline Retail - 2.4%
49,040 * BJ's Wholesale Club, Inc. ......................... 1,894,170
400 Dillards, Inc., Cl. A................................ 6,575
1,300 Dollar General Corp. ................................ 34,937
1,900 Family Dollar Stores, Inc. .......................... 39,544
4,500 * Federated Department Stores, Inc. ................. 187,875
3,000 * Kmart Corp. ....................................... 29,063
2,900 * Kohl's Corp. ...................................... 297,250
4,250 May Dept. Stores Co. ................................ 121,125
34,620 * Saks, Inc. ........................................ 501,990
1,100 Sears, Roebuck & Co. ................................ 33,962
1,000 * Shopko Stores, Inc. ............................... 17,750
</TABLE>
73
<PAGE>
EVERGREEN
Masters Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Multiline Retail - continued
12,000 Target Corp. ........................................ $ 897,000
68,700 Wal-Mart Stores, Inc. ............................... 3,812,850
------------
7,874,091
------------
Office Electronics - 0.4%
50,400 Banyan Systems, Inc. ................................ 885,150
6,900 * Radiant Systems, Inc. ............................. 433,838
------------
1,318,988
------------
Oil & Gas - 7.1%
1,500 Amerada Hess Corp. .................................. 96,937
12,800 * Anderson Exploration, Ltd. ........................ 184,997
58,400 Apache Corp. ........................................ 2,905,400
4,500 Atlantic Richfield Co. .............................. 382,500
50,000 Beau Canada Exploration, Ltd. ....................... 61,253
15,000 * Berkley Petroleum Corp. ........................... 92,911
140,000 * Canadian 88 Energy Corp. .......................... 192,705
3,800 Canadian Hunter Exploration, Ltd. ................... 67,997
8,500 Chevron Corp. ....................................... 785,719
6,100 * Chieftain International, Inc. ..................... 122,762
25,600 Conoco, Inc., Cl. A.................................. 630,400
3,500 Conoco, Inc., Cl. B.................................. 89,688
12,000 Devon Energy Corp. .................................. 582,750
6,500 Encal Energy, Ltd. .................................. 31,091
152,100 EOG Resources, Inc. ................................. 3,222,619
33,637 Exxon Mobil Corp. ................................... 2,617,379
67,500 Frontier Oil Corp. .................................. 506,250
81,200 * Houston Exploration Co. ........................... 1,461,600
2,600 Kerr-McGee Corp. .................................... 150,150
7,500 Murphy Oil Corp. .................................... 432,187
116,200 * Newfield Exploration Co. .......................... 4,096,050
7,100 Newport Petroleum Corp. ............................. 18,813
1,300 Northrock Resources, Ltd. ........................... 4,921
1,100 Occidental Petroleum Corp. .......................... 22,825
7,700 Paramount Resources, Ltd. ........................... 69,422
3,000 Phillips Petroleum Co. .............................. 138,750
30,600 Ranger Oil, Ltd. .................................... 118,988
5,000 Rio Alto Exploration, Ltd. .......................... 87,922
34,000 Royal Dutch Petroleum Co. ........................... 1,957,125
1,900 * Stone Energy Corp. ................................ 93,575
6,700 Talisman Energy, Inc. ............................... 190,671
5,700 Tesoro Petroleum Corp. .............................. 65,550
9,100 Texaco, Inc. ........................................ 487,987
1,700 Tosco Corp. ......................................... 51,744
1,600 Ulster Petes Ltd. ................................... 7,983
400 USX Marathon Group .................................. 10,425
17,900 Vastar Resources, Inc. .............................. 1,330,194
------------
23,370,240
------------
Paper & Forest Products - 0.3%
200 Boise Cascade Corp. ................................. 6,950
13,000 Bowater, Inc. ....................................... 693,875
200 Champion International Corp. ........................ 10,650
2,300 Georgia-Pacific Corp. ............................... 90,994
2,000 Louisiana Pacific Corp. ............................. 27,750
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Paper & Forest Products - continued
200 Mead Corp. .......................................... $ 6,988
900 Rayonier, Inc. ...................................... 43,875
200 Westvaco Corp. ...................................... 6,675
2,400 Weyerhaeuser Co. .................................... 136,800
1,100 Willamette Industries, Inc. ......................... 44,137
------------
1,068,694
------------
Personal Products - 0.8%
300 Alberto Culver Co., Cl. B............................ 7,144
11,700 Colgate-Palmolive Co. ............................... 659,587
10,900 Dial Corp. .......................................... 149,875
13,200 The Estee Lauder Cos., Inc., Cl. A................... 660,825
18,200 Kimberly-Clark Corp. ................................ 1,019,200
------------
2,496,631
------------
Pharmaceuticals - 2.5%
7,700 Allergan, Inc. ...................................... 385,000
29,000 Bristol-Myers Squibb Co. ............................ 1,674,750
20,600 Intrabiotics Pharmaceuticals......................... 309,000
13,500 Johnson & Johnson.................................... 945,844
12,000 Merck & Co., Inc. ................................... 745,500
80 Orapharma, Inc. ..................................... 1,480
34,100 Schering-Plough Corp. ............................... 1,253,175
3,200 * Sepracor, Inc. .................................... 233,000
13,600 United Therapeutics Corp. ........................... 1,057,400
14,800 Warner-Lambert Co. .................................. 1,443,000
------------
8,048,149
------------
Real Estate - 0.1%
14,100 Boston Properties, Inc., REIT........................ 448,556
------------
Road & Rail - 0.1%
3,500 Burlington Northern Santa Fe Corp. .................. 77,438
300 U.S. Freightways Corp. .............................. 11,231
3,700 Union Pacific Corp. ................................. 144,762
------------
233,431
------------
Semiconductor Equipment &
Products - 7.2%
900 * Advanced Micro Devices, Inc. ...................... 51,356
13,630 * Altera Corp. ...................................... 1,216,477
8,500 * Analog Devices, Inc. .............................. 684,781
16,672 * Applied Materials, Inc. ........................... 1,571,336
10,100 * Applied Science & Tech, Inc. ...................... 305,525
29,200 * Atmel Corp. ....................................... 1,507,450
3,000 * Conexant Systems, Inc. ............................ 213,000
3,700 * Cypress Semiconductor Corp. ....................... 182,456
16,800 * Dupont Photomasks, Inc. ........................... 973,350
60 Insilicon, Inc. ..................................... 949
2,100 Integrated Device Technology......................... 83,213
50,300 Intel Corp. ......................................... 6,636,456
24,320 * Jabil Circuit, Inc. ............................... 1,051,840
2,600 * KLA-Tencor Corp. .................................. 219,050
6,000 * Lam Research Corp. ................................ 270,375
2,000 * Lattice Semiconductor Corp. ....................... 135,375
</TABLE>
74
<PAGE>
EVERGREEN
Masters Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Semiconductor Equipment &
Products - continued
14,800 Linear Technology Corp. ............................ $ 814,000
7,900 * LSI Logic Corp. .................................. 573,738
5,000 * LTX Corp. ........................................ 225,938
18,180 * Maxim Integrated Products, Inc. .................. 1,291,916
14,000 Mentor Graphics Corp. .............................. 211,750
8,600 * MKS Instruments, Inc. ............................ 434,300
2,800 * National Semiconductor Corp. ..................... 169,750
14,600 * Novellus Systems, Inc. ........................... 819,425
110 Silicon Laboratories................................ 9,735
900 * Synopsys, Inc. ................................... 43,875
4,700 * Teradyne, Inc. ................................... 386,575
5,500 Texas Instruments, Inc. ............................ 880,000
29,260 * Xilinx, Inc. ..................................... 2,423,094
------------
23,387,085
------------
Software - 4.4%
2,000 Adobe Systems, Inc. ................................ 222,625
16,700 * Aspen Technology, Inc. ........................... 674,262
70 Blaze Software Inc. ................................ 1,995
3,400 Computer Associates International, Inc. ............ 201,238
13,100 Diversinet Corp. ................................... 234,163
2,300 * I2 Technologies, Inc. ............................ 280,887
12,900 Informix Corp. ..................................... 218,494
18,500 * Intuit, Inc. ..................................... 1,005,937
7,900 * Legato Systems, Inc. ............................. 352,537
63,500 * Microsoft Corp. .................................. 6,746,875
18,600 * Network Associates, Inc. ......................... 599,850
19,200 * Oracle Systems Corp. ............................. 1,498,800
120 Otg Software Inc. .................................. 4,838
10,000 * Parametric Technology Corp. ...................... 210,625
2,300 * Peoplesoft, Inc. ................................. 46,000
14,895 * Veritas Software Corp. ........................... 1,951,245
------------
14,250,371
------------
Specialty Retail - 3.0%
8,000 * Abercrombie & Fitch Co., Cl. A.................... 128,000
1,600 * ADC Telecommunications, Inc. ..................... 86,200
3,000 * American Eagle Outfitters, Inc. .................. 113,813
1,000 * Ann Taylor Stores Corp. .......................... 23,000
5,700 * Barnes & Noble, Inc. ............................. 131,100
400 * Bed Bath & Beyond, Inc. .......................... 15,750
4,600 * Best Buy Co., Inc. ............................... 395,600
10,530 * Borders Group, Inc. .............................. 180,984
1,500 Circuit City Stores, Inc. .......................... 91,313
4,600 Gap, Inc. .......................................... 229,137
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Specialty Retail - continued
55,850 Home Depot, Inc. .................................... $ 3,602,325
3,800 Limited, Inc. ....................................... 160,075
1,300 * Linens 'n Things, Inc. ............................ 44,525
600 Lowe's Companies, Inc. .............................. 35,025
500 Nordstrom, Inc. ..................................... 14,750
1,000 * Office Depot, Inc. ................................ 11,563
2,000 * Payless Shoesource, Inc. .......................... 103,875
85,800 Ross Stores, Inc. ................................... 2,064,562
15,200 Tandy Corp. ......................................... 771,400
1,900 Tiffany & Co. ....................................... 158,887
34,000 TJX Co., Inc. ....................................... 754,375
542 Too, Inc. ........................................... 17,107
1,200 * Toys "R" Us, Inc. ................................. 17,775
19,110 * Williams Sonoma, Inc. ............................. 592,410
3,000 * Zale Corp. ........................................ 141,563
------------
9,885,114
------------
Textiles & Apparel - 0.7%
13,200 Gucci Group ......................................... 1,173,975
25,894 * Jones Apparel Group, Inc. ......................... 825,371
1,000 Liz Claiborne, Inc. ................................. 45,812
1,000 Nike, Inc., Cl. B.................................... 39,625
2,200 Unifi, Inc. ......................................... 19,663
900 V.F. Corp. .......................................... 21,656
2,000 Warnaco Group, Inc. ................................. 23,625
------------
2,149,727
------------
Tobacco - 0.1%
10,900 Philip Morris Cos., Inc. ............................ 230,263
4,800 * R.J. Reynolds Tobacco Holdings, Inc. .............. 81,600
1,400 UST, Inc. ........................................... 21,875
------------
333,738
------------
Water Utilities - 0.1%
12,100 American Water Works, Inc. .......................... 287,375
------------
Wireless Telecommunications
Services - 0.9%
7,400 * Nextel Communications, Inc., Cl. A................. 1,097,050
9,300 * Sprint Corp. (PCS Group), Ser. 1................... 607,406
400 * United States Cellular Corp. ...................... 28,400
11,500 Vodafone AirTouch PLC, ADR........................... 638,969
4,486 * Voicestream Wireless Corp. ........................ 577,853
900 Western Wireless Corp., Cl. A........................ 41,231
------------
2,990,909
------------
Total Common Stocks
(cost $261,790,155)................................. 320,525,066
------------
</TABLE>
75
<PAGE>
EVERGREEN
Masters Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
CORPORATE BONDS - 0.2%
Aerospace & Defense - 0.1%
$ 500,000 Getty Images, Inc.,
5.00%, 3/15/2007.................................... $ 406,250
------------
Internet Software &
Services - 0.1%
420,000 Mail Common, Inc., 7.00%, 2/15/2005.................. 418,425
------------
Total Corporate Bonds (cost $837,450)................ 824,675
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
REPURCHASE AGREEMENTS - 1.4%
$4,499,000 State Street Bank & Trust Co., purchased 3/31/2000,
6.05%, maturing 4/3/2000, maturity value $4,501,268
(cost $4,499,000) (a).............................. $ 4,499,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -
(cost $267,126,605).......................... 99.7% 325,848,741
Other Assets and
Liabilities - net............................ 0.3 914,832
----- ------------
Net Assets.................................... 100.0% $326,763,573
===== ============
</TABLE>
(a) The repurchase agreement is fully collateralized by: $4,545,000 FNMA,
6.000%, 6/7/2002; value including accrued interest $4,592,155
* Non-income producing security.
Summary of Abbreviations
ADR American Depository Receipt
REIT Real Estate Investment Trust
See Combined Notes to Financial Statements.
76
<PAGE>
EVERGREEN
Omega Fund
Schedule of Investments
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 96.9%
Biotechnology - 3.3%
65,400 * Alkermes, Inc. (b).............................. $ 6,049,500
261,700 * Genzyme Transgenics Corp. ...................... 5,234,000
100,000 * Gilead Sciences, Inc. (b)....................... 6,337,500
230,000 * Ilex Oncology, Inc. (b)......................... 9,660,000
165,000 * Immunex Corp. .................................. 10,467,188
40,000 * MedImmune, Inc. ................................ 6,965,000
110,000 * Millennium Pharmaceuticals,
Inc. (b)......................................... 14,286,250
104,400 * Neopharm, Inc. ................................. 2,610,000
--------------
61,609,438
--------------
Chemicals - 0.9%
318,200 * Monsanto Co. ................................... 16,387,300
--------------
Commercial Services &
Supplies - 0.9%
330,000 Paychex, Inc. .................................... 17,283,750
--------------
Communications
Equipment - 8.2%
185,000 * CIENA Corp. .................................... 23,333,125
800,000 * Cisco Systems, Inc. ............................ 61,850,000
350,000 * Copper Mountain Networks,
Inc. (b)......................................... 28,678,125
320,000 Ericsson LM Telephone Co.,
Cl. B, ADR....................................... 30,020,000
75,000 * RF Micro Devices, Inc. ......................... 10,078,125
--------------
153,959,375
--------------
Computers & Peripherals - 7.1%
475,000 * EMC Corp. ...................................... 59,375,000
415,000 * NVIDIA Corp. (b)................................ 35,061,016
266,000 * Seagate Technology.............................. 16,026,500
235,000 * Sun Microsystems, Inc. ......................... 22,020,234
--------------
132,482,750
--------------
Diversified Financials - 6.0%
175,000 American Express Co. ............................. 26,064,062
638,300 Citigroup, Inc. .................................. 37,859,169
295,000 Morgan Stanley, Dean Witter & Co. ................ 24,060,938
425,000 Schwab (Charles) & Co., Inc. (b).................. 24,145,312
--------------
112,129,481
--------------
Diversified Telecommunication Services - 4.6%
165,000 * Allegiance Telecom, Inc. ....................... 13,303,125
390,000 * AT&T Corp.
Liberty Media Group, Cl. A....................... 23,107,500
220,000 * McLeod USA, Inc., Cl. A (b)..................... 18,658,750
239,900 Sonera Oyj, ADR (b)............................... 15,923,363
262,500 * Winstar Communications,
Inc. (b)......................................... 15,750,000
--------------
86,742,738
--------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Electronic Equipment & Instruments - 6.4%
210,000 * Cree Research, Inc. ............................ $ 23,703,750
228,000 * JDS Uniphase Corp. ............................. 27,488,250
359,100 * Sandisk Corp. .................................. 43,989,750
350,000 * Sanmina Corp. (b)............................... 23,646,875
--------------
118,828,625
--------------
Energy Equipment &
Services - 6.1%
250,000 * BJ Services Co., Inc. .......................... 18,468,750
500,000 Diamond Offshore Drilling, Inc. .................. 19,968,750
700,000 ENSCO International, Inc. ........................ 25,287,500
525,000 * Nabors Industries, Inc. ........................ 20,376,562
600,000 * R&B Falcon Corp. ............................... 11,812,500
320,000 * Weatherford International, Inc. ................ 18,860,000
--------------
114,774,062
--------------
Health Care Equipment & Supplies - 2.3%
348,400 Medtronic, Inc. .................................. 17,920,825
366,300 * Osteotech, Inc. ................................ 4,899,263
215,000 PE Corp-PE Biosystems Group....................... 20,747,500
--------------
43,567,588
--------------
Health Care Providers &
Services - 1.7%
1,005,000 * Health Management Associates, Inc., Cl. A....... 14,321,250
280,000 United Healthcare Corp. .......................... 16,695,000
--------------
31,016,250
--------------
Industrial Conglomerates - 1.5%
550,000 Tyco International, Ltd. ......................... 27,431,250
--------------
Insurance - 1.4%
240,000 American International Group, Inc. ............... 26,280,000
--------------
Internet Software &
Services - 2.7%
340,000 * America Online, Inc. ........................... 22,865,000
255,000 * Broadvision, Inc. (b)........................... 11,443,125
100,000 * Yahoo!, Inc. (b)................................ 17,137,500
--------------
51,445,625
--------------
Media - 6.0%
200,000 CBS Corp. ........................................ 11,325,000
260,000 * Clear Channel Communications, Inc. ............. 17,956,250
550,000 * Infinity Broadcasting Corp. (b)................. 17,806,250
275,000 Martha Stewart Living Omnimedia, Inc. (b)......... 7,425,000
400,000 Seagram Co., Ltd. ................................ 23,800,000
155,000 * Univision Communications, Inc.,
Cl. A (b)........................................ 17,515,000
300,000 * Viacom, Inc., Cl. B............................. 15,825,000
--------------
111,652,500
--------------
</TABLE>
77
<PAGE>
EVERGREEN
Omega Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Multiline Retail - 1.0%
325,000 Wal-Mart Stores, Inc. ............................ $ 18,037,500
--------------
Oil & Gas - 1.9%
327,400 Apache Corp. ..................................... 16,288,150
400,000 Devon Energy Corp. ............................... 19,425,000
--------------
35,713,150
--------------
Pharmaceuticals - 6.9%
1,150,000 American Home Products Corp. ..................... 61,668,750
500,000 ICN Pharmaceuticals, Inc. (b)..................... 13,625,000
758,000 Pharmacia & Upjohn, Inc. ......................... 44,911,500
216,200 * Watson Pharmaceuticals, Inc. ................... 8,580,437
--------------
128,785,687
--------------
Semiconductor Equipment & Products - 14.8%
130,000 * Broadcom Corp. ................................. 31,573,750
335,000 * Cymer, Inc. (b)................................. 16,750,000
138,700 * Cypress Semiconductor Corp. .................... 6,839,644
430,000 Intel Corp. ...................................... 56,733,125
178,300 * Intersil Holding Corp. (b)...................... 9,215,881
300,000 * LSI Logic Corp. ................................ 21,787,500
360,000 * Microchip Technology, Inc. ..................... 23,670,000
350,000 Micron Technology, Inc. .......................... 44,100,000
105,000 * PMC-Sierra, Inc. ............................... 21,387,187
300,000 * Teradyne, Inc. ................................. 24,675,000
197,400 * Vitesse Semiconductor Corp. .................... 18,999,750
--------------
275,731,837
--------------
Software - 8.5%
310,000 * Entrust Technologies, Inc. ..................... 26,374,219
80,000 * I2 Technologies, Inc. (b)....................... 9,770,000
381,000 * Microsoft Corp. ................................ 40,481,250
215,000 * Oracle Systems Corp. ........................... 16,783,438
300,000 * Remedy Corp. ................................... 12,637,500
145,000 * Siebel Systems, Inc. (b)........................ 17,318,437
272,500 * Veritas Software Corp. ......................... 35,697,500
--------------
159,062,344
--------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Specialty Retail - 3.6%
500,000 * Best Buy Co., Inc. ............................ $ 43,000,000
537,000 * Tweeter Home Entertainment Group, Inc. (b)..... 23,762,250
--------------
66,762,250
--------------
Wireless Telecommunications Services - 1.1%
158,310 * Voicestream Wireless Corp. (b)................. 20,392,307
--------------
Total Common Stocks (cost $1,305,453,221)........ 1,810,075,807
--------------
SHORT-TERM INVESTMENTS - 11.8%
Mutual Fund Shares - 9.2%
172,674,946 Navigator Prime Portfolio
(cost $172,674,946) (c)......................... 172,674,946
--------------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
Repurchase Agreement - 2.6%
$47,576,000 Evergreen Joint Repurchase Agreement, Investments
in repurchase agreements, in a joint trading
account, purchased 3/31/2000, 6.10%, maturing
4/03/2000, maturity value $47,600,184
(cost $47,576,000) (a).......................... 47,576,000
--------------
Total Investments -
(cost $1,525,704,167)...................... 108.7% 2,030,326,753
Other Assets and
Liabilities - net.......................... (8.7) (162,744,038)
----- --------------
Net Assets.......................................... 100.0% $1,867,582,715
===== ==============
</TABLE>
(a) The repurchase agreement is fully collateralized by U.S. government and/or
agency obligation based on market prices plus accrued interest at
March 31, 2000.
(b) All or a portion of this security is on loan.
(c) Represents investment in cash collateral received for securities on loan.
* Non-income producing security.
See Combined Notes to Financial Statements.
78
<PAGE>
EVERGREEN
Small Company Growth Fund
Schedule of Investments
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 96.6%
Aerospace & Defense - 0.3%
70,000 * M Systems Flash Disk Pioneers Ltd. ............... $ 3,710,000
------------
Banks - 1.5%
205,340 BostonFed Bancorp, Inc. ............................ 2,271,574
465,420 North Fork Bancorp, Inc. ........................... 8,319,383
232,900 Peoples Heritage Financial
Group, Inc. ....................................... 3,493,500
251,700 TCF Financial Corp. ................................ 5,993,606
------------
20,078,063
------------
Biotechnology - 6.1%
121,200 * Aclara Biosciences Inc. .......................... 4,779,825
123,200 * Alexion Pharmaceuticals Inc. (b).................. 8,593,200
84,000 * Alkermes, Inc. (b)................................ 7,770,000
22,400 * Maxygen Inc. ..................................... 1,460,200
251,100 * Medarex, Inc. .................................... 12,617,775
168,900 * Millennium Pharmaceuticals, Inc. ................. 21,935,888
234,300 * Osi Pharmaceuticals Inc. ......................... 4,568,850
98,800 * Protein Design Labs Inc. ......................... 7,854,600
211,400 * QLT Phototherapeutics, Inc. (b)................... 11,679,850
------------
81,260,188
------------
Commercial Services &
Supplies - 7.4%
411,900 * Amdocs Ltd. ...................................... 30,351,881
313,700 * Apollo Group, Inc. ............................... 8,842,419
122,855 * BISYS Group, Inc. (b)............................. 8,169,857
395,400 * Convergys Corp. (b)............................... 15,272,325
680,068 * Devry, Inc. ...................................... 20,742,074
98,200 * Diamond Technology Partners, Inc. ................ 6,456,650
267,700 * Maximus, Inc. (b)................................. 8,164,850
------------
98,000,056
------------
Communications
Equipment - 4.4%
200,500 * CIENA Corp. ...................................... 25,288,062
147,500 * Copper Mountain Networks,
Inc. (b)........................................... 12,085,781
39,200 * Crossroads Systems, Inc. (b)...................... 4,047,400
85,800 * Echelon Corp. .................................... 5,619,900
593,800 * Glenayre Technologies, Inc. ...................... 10,428,613
25,000 * Interwave Commerce International, Ltd. ........... 753,125
11,000 * Tollgrade Communications, Inc. ................... 583,000
------------
58,805,881
------------
Computers & Peripherals - 4.2%
214,900 * In Focus Systems, Inc. ........................... 7,696,106
1,011,000 * Maxtor Corp. (b).................................. 13,079,813
174,200 * Network Appliance, Inc. .......................... 14,415,050
246,200 Symbol Technologies, Inc. .......................... 20,265,337
------------
55,456,306
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Construction &
Engineering - 0.5%
137,700 * Dycom Industries, Inc. (b)........................ $ 6,712,875
------------
Construction Materials - 0.7%
238,600 Texas Industries, Inc. (b).......................... 7,426,425
158,600 United States Aggregates, Inc. ..................... 2,279,875
------------
9,706,300
------------
Diversified Financials - 1.1%
184,200 * Catellus Development Corp. ....................... 2,555,775
315,800 Countrywide Credit Industries,
Inc. (b)........................................... 8,605,550
214,600 * NextCard, Inc. (b)................................ 3,282,709
------------
14,444,034
------------
Diversified Telecommunication Services - 9.5%
253,500 * Allegiance Telecom, Inc. ......................... 20,438,437
56,300 * Clarent Corp. .................................... 5,077,556
77,300 * Efficient Networks, Inc. (b)...................... 12,039,475
146,500 * ITC DeltaCom, Inc. (b)............................ 5,219,063
482,800 * McLeod USA, Inc., Cl. A (b)....................... 40,947,475
48,700 * Pinnacle Holdings, Inc. .......................... 2,690,675
300,000 * Primus Telecomm Group, Inc. ...................... 15,506,250
78,000 * US LEC Corp., Cl. A (b)........................... 3,100,500
147,000 * Viatel, Inc. ..................................... 7,377,563
222,350 * Winstar Communications, Inc. (b).................. 13,341,000
------------
125,737,994
------------
Electric Utilities - 0.8%
192,400 Avista Corp. ....................................... 7,840,300
65,000 TNP Enterprises, Inc. .............................. 2,847,813
------------
10,688,113
------------
Electronic Equipment & Instruments - 7.5%
117,500 * Caliper Technologies Corp. (b).................... 9,502,812
123,300 * Coherent, Inc. ................................... 6,411,600
173,700 * Conductus, Inc. (b)............................... 5,634,394
94,000 * II-VI, Inc. ...................................... 3,572,000
172,100 * JDS Uniphase Corp. ............................... 20,748,806
353,100 * Kopin Corp. ...................................... 24,275,625
54,500 * Robotic Vision Systems Inc. (b)................... 872,000
192,600 * Sandisk Corp. .................................... 23,593,500
80,800 * Three-Five Systems, Inc. ......................... 4,848,000
------------
99,458,737
------------
Energy Equipment &
Services - 6.6%
516,700 Diamond Offshore Drilling, Inc. .................... 20,635,706
462,100 ENSCO International, Inc. .......................... 16,693,362
551,800 * Global Marine, Inc. .............................. 14,001,925
262,900 * National Oilwell, Inc. (b)........................ 8,117,038
142,700 * Patterson Energy, Inc. ........................... 4,530,725
417,800 * R&B Falcon Corp. ................................. 8,225,437
270,500 * Weatherford International, Inc. .................. 15,942,594
------------
88,146,787
------------
</TABLE>
79
<PAGE>
EVERGREEN
Small Company Growth Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Food & Drug Retailing - 0.4%
128,500 * Whole Foods Market, Inc. (b)...................... $ 5,324,719
------------
Health Care Equipment & Supplies - 0.5%
225,300 * Cyberonics, Inc. ................................. 4,210,294
64,900 * Lynx Therapeutics, Inc. (b)....................... 1,930,775
------------
6,141,069
------------
Health Care Providers &
Services - 2.5%
91,700 * Andrx Corp. (b)................................... 10,591,350
362,200 * Apria Healthcare Group, Inc. ..................... 5,229,263
300,000 * Oxford Health Plans, Inc. ........................ 4,575,000
50,000 * Pediatrix Medical Group, Inc. (b)................. 362,500
108,800 * Pharmacopeia, Inc. ............................... 5,331,200
390,400 * Superior Consultant, Inc. (b)..................... 6,563,600
------------
32,652,913
------------
Hotels Restaurants &
Leisure - 1.0%
284,100 * Starbucks Corp. .................................. 12,731,231
------------
Household Durables - 0.5%
433,700 Clayton Homes, Inc. ................................ 4,391,213
201,600 D.R. Horton, Inc. .................................. 2,633,400
------------
7,024,613
------------
Insurance - 1.2%
142,200 AMBAC Finl. Group, Inc. ............................ 7,163,325
284,600 Arthur J. Gallagher & Co. .......................... 9,249,500
------------
16,412,825
------------
Internet & Catalog Retail - 0.5%
116,400 Lands' End, Inc. (b)................................ 7,158,600
------------
Internet Software &
Services - 2.5%
120,000 * Digitas Inc. (b).................................. 2,940,000
96,200 * Engage Technologies, Inc. (b)..................... 7,341,263
25,500 * Eprise Corp. (b).................................. 401,625
140,000 * Fairmarket ....................................... 3,185,000
59,100 * Keynote Systems, Inc. ............................ 6,042,975
132,200 * Netegrity, Inc. .................................. 9,055,700
47,600 * Spyglass, Inc. ................................... 3,691,231
------------
32,657,794
------------
Machinery - 2.5%
110,900 * Astec Industries, Inc. ........................... 2,945,781
872,900 Roper Industries, Inc. ............................. 29,624,044
------------
32,569,825
------------
Marine - 0.6%
234,000 Tidewater, Inc. .................................... 7,444,125
------------
Media - 2.9%
174,000 * Lamar Advertising Co., Cl. A (b).................. 7,917,000
212,400 * Univision Communications, Inc., Cl. A (b) ........ 24,001,200
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Media - continued
189,100 Valassis Communications, Inc. ...................... $ 6,299,394
------------
38,217,594
------------
Metals & Mining - 0.7%
234,700 * Stillwater Mining Co. ............................ 9,388,000
------------
Office Electronics - 1.3%
131,900 * Manugistics Group, Inc. .......................... 6,627,975
166,400 * Radiant Systems, Inc. ............................ 10,462,400
------------
17,090,375
------------
Oil & Gas - 3.6%
388,900 Cross Timbers Oil Co. .............................. 5,080,006
348,300 * Nuevo Energy Co. ................................. 7,488,450
130,600 * Stone Energy Corp. ............................... 6,432,050
392,000 Triton Energy Ltd. ................................. 13,744,500
291,100 Valerorefng + Marketing Co. ........................ 8,914,937
291,700 Vintage Petroleum, Inc. ............................ 5,870,463
------------
47,530,406
------------
Pharmaceuticals - 0.4%
468,500 * Dura Pharmaceuticals, Inc. ....................... 5,768,406
------------
Semiconductor Equipment & Products - 9.5%
118,300 * ANADIGICS, Inc. .................................. 7,807,800
220,000 * Atmel Corp. ...................................... 11,357,500
84,200 Cohu Inc. .......................................... 3,510,088
189,700 * Cypress Semiconductor Corp. ...................... 9,354,581
90,000 * Electroglas, Inc. ................................ 3,082,500
62,100 Helix Technology Corp. ............................. 3,729,881
127,600 * International Rectifier Corp. .................... 4,864,750
41,900 * Intersil Holding Corp. ........................... 2,165,706
140,000 * Kulicke & Soffa Industries, Inc. (b).............. 8,968,750
100,000 * LTX Corp. ........................................ 4,518,750
125,156 * Maxim Integrated Products, Inc. .................. 8,893,898
138,000 * Microchip Technology, Inc. ....................... 9,073,500
183,000 * National Semiconductor Corp. ..................... 11,094,375
123,000 * Novellus Systems, Inc. ........................... 6,903,375
90,000 * Photon Dynamics, Inc. ............................ 6,210,000
120,000 * Psi Technologies Holdings Inc. (b)................ 1,995,000
80,000 * Rudolph Technologies, Inc. ....................... 3,600,000
70,000 * Silicon Valley Group, Inc. ....................... 1,925,000
149,700 * Therma-Wave, Inc. ................................ 5,089,800
116,400 * Vitesse Semiconductor Corp. ...................... 11,203,500
------------
125,348,754
------------
Software - 7.0%
127,900 * Documentum, Inc. ................................. 9,976,200
218,600 * Edwards (J.D.) & Co. (b).......................... 7,118,163
103,200 * I2 Technologies, Inc. (b)......................... 12,603,300
356,500 * Igate Capital Corp. .............................. 16,087,062
4,000 * Lightspan Partnership Inc. ....................... 71,000
20,000 * Otg Software Inc. ................................ 806,250
</TABLE>
80
<PAGE>
EVERGREEN
Small Company Growth Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Software - continued
327,300 * Rational Software Corp. ......................... $ 25,038,450
182,200 * Remedy Corp. .................................... 7,675,175
307,785 * Smartforce Plc................................... 14,119,637
-------------
93,495,237
-------------
Specialty Retail - 6.4%
262,300 * American Eagle Outfitters, Inc. (b).............. 9,951,006
407,600 * Linens 'n Things, Inc. .......................... 13,960,300
292,500 * Pacific Sunwear of California (b)................ 11,261,250
358,500 Ross Stores, Inc. ................................. 8,626,406
327,400 Talbots, Inc. ..................................... 19,275,675
627,100 TJX Co., Inc. ..................................... 13,913,781
166,900 * Zale Corp. ...................................... 7,875,594
-------------
84,864,012
-------------
Textiles & Apparel - 0.7%
210,900 Liz Claiborne, Inc. ............................... 9,661,856
-------------
Wireless Telecommunications Services - 1.3%
50,000 * Airgate PCS, Inc. ............................... 5,275,000
62,700 * TeleCorp PCS, Inc., Cl. A (b).................... 3,244,725
20,000 * Tritel, Inc. .................................... 765,000
20,200 * Triton PCS Holdings, Inc. (b).................... 1,206,950
135,100 * Western Wireless Corp., Cl. A.................... 6,189,269
-------------
16,680,944
-------------
Total Common Stocks (cost $846,160,345)............ 1,280,368,632
-------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
SHORT-TERM INVESTMENTS - 16.2%
Mutual Fund Shares - 14.8%
195,567,504 Navigator Prime Portfolio (cost $195,567,504)
(c).............................................. $ 195,567,504
-------------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
Repurchase Agreement - 1.4%
$18,281,000 Evergreen Joint Repurchase Agreement, Investments
in repurchase agreements, in a joint trading
account, purchased 3/31/2000, 6.10%, maturing
4/3/2000, maturity value $18,290,293
(cost $18,281,000) (a)........................... 18,281,000
-------------
Total Investments -
(cost $1,060,008,849)...................... 112.8% 1,494,217,136
Other Assets and
Liabilities - net.......................... (12.8) (168,754,666)
----- --------------
Net Assets.................................. 100.0% $1,325,462,470
===== ==============
</TABLE>
(a) The repurchase agreement is fully collateralized by U.S. government and/or
agency obligations based on market prices plus accrued interest at March
31, 2000.
(b) All or a portion of this security is on loan.
(c) Represents investment in cash collateral received for securities on loan.
* Non-income producing security.
See Combined Notes to Financial Statements.
81
<PAGE>
EVERGREEN
Stock Selector Fund
Schedule of Investments
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 97.3%
Automobiles - 0.7%
69,050 Ford Motor Co........................................... $ 3,171,984
------------
Banks - 2.9%
136,600 Firstar Corp............................................ 3,133,262
26,400 J.P. Morgan & Co., Inc. ................................ 3,478,200
288,500 SouthTrust Corp. ....................................... 7,338,719
------------
13,950,181
------------
Beverages - 0.7%
52,083 Anheuser Busch Companies, Inc. ......................... 3,242,167
------------
Biotechnology - 1.4%
29,400 * Amgen, Inc............................................ 1,804,425
43,850 * Chiron Corp. ......................................... 2,187,019
9,050 * Genetech, Inc. ....................................... 1,375,600
6,550 * MedImmune, Inc. ...................................... 1,140,519
------------
6,507,563
------------
Chemicals - 0.2%
19,200 Millipore Corp. ........................................ 1,083,600
------------
Commercial Services &
Supplies - 1.6%
55,750 * Computer Sciences Corp................................ 4,411,219
30,300 Electronic Data Systems Corp............................ 1,944,881
28,500 McGraw-Hill Companies, Inc. ............................ 1,296,750
------------
7,652,850
------------
Communications Equipment - 9.0%
89,550 * Cabletron Systems, Inc................................ 2,624,934
189,030 * Cisco Systems, Inc.................................... 14,614,382
47,450 Corning, Inc. .......................................... 9,205,300
44,350 Ericsson LM Telephone Co., Cl. B, ADR................... 4,160,585
38,590 Motorola, Inc........................................... 5,494,251
27,150 Nokia Corp., ADR........................................ 5,898,338
17,100 Scientific Atlanta, Inc................................. 1,084,781
------------
43,082,571
------------
Computers & Peripherals - 3.8%
24,533 Apple Computer.......................................... 3,331,888
251,531 Compaq Computer Corp.................................... 6,697,013
46,711 * EMC Corp.............................................. 5,838,875
11,100 International Business Machines Corp.................... 1,309,800
44,100 Unisys Corp............................................. 1,124,550
------------
18,302,126
------------
Diversified Financials - 9.7%
183,937 Citigroup, Inc.......................................... 10,909,763
27,333 Federal National Mortgage Assn.......................... 1,542,606
103,027 General Electric Co..................................... 15,988,503
99,900 Goldman Sachs Group, Inc................................ 10,501,987
47,038 Lehman Brothers Holdings, Inc........................... 4,562,686
18,100 Morgan Stanley, Dean Witter & Co. ...................... 1,476,281
16,500 Providian Financial Corp. .............................. 1,429,313
------------
46,411,139
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Diversified Telecommunication
Services - 3.2%
27,550 ALLTEL Corp............................................. $ 1,737,372
38,150 AT&T Corp............................................... 2,145,938
24,650 * Global Crossing, Ltd.................................. 1,009,109
26,952 GTE Corp. .............................................. 1,913,592
118,337 * MCI WorldCom, Inc..................................... 5,362,145
48,850 * Winstar Communications, Inc. ......................... 2,931,000
------------
15,099,156
------------
Electric Utilities - 1.9%
23,935 Duke Energy Corp. ...................................... 1,256,588
28,369 FPL Group, Inc. ........................................ 1,306,747
134,800 PECO Energy Co.......................................... 4,970,750
43,650 Unicom Corp............................................. 1,593,225
------------
9,127,310
------------
Electronic Equipment &
Instruments - 2.0%
48,750 Flextronics International Ltd........................... 3,433,828
58,150 * SCI Systems, Inc. .................................... 3,129,197
73,060 * Solectron Corp. ...................................... 2,926,966
------------
9,489,991
------------
Energy Equipment & Services - 0.6%
92,650 Rowan Companies, Inc.................................... 2,727,384
------------
Food & Drug Retailing - 1.2%
157,250 SYSCO Corp. ............................................ 5,611,859
------------
Gas Utilities - 0.7%
79,868 El Paso Energy Corp. ................................... 3,224,671
------------
Health Care Equipment &
Supplies - 3.4%
43,850 Bausch & Lomb, Inc...................................... 2,288,422
86,350 Biomet, Inc............................................. 3,140,981
96,550 C.R. Bard, Inc.......................................... 3,735,278
71,400 PE Corp-PE Biosystems Group............................. 6,890,100
------------
16,054,781
------------
Health Care Providers &
Services - 1.4%
45,600 Cardinal Health, Inc. .................................. 2,091,900
116,700 IMS Health, Inc......................................... 1,976,606
21,150 United Healthcare Corp.................................. 1,261,069
18,081 * Wellpoint Health Networks, Inc., Cl. A................ 1,263,410
------------
6,592,985
------------
Hotels Restaurants & Leisure - 0.9%
102,050 * Harrahs Entertainment, Inc............................ 1,894,303
76,117 * Tricon Global Restaurants, Inc........................ 2,364,384
------------
4,258,687
------------
Industrial Conglomerates - 1.1%
57,150 Dover Corp. ............................................ 2,736,056
54,740 Tyco International, Ltd................................. 2,730,158
------------
5,466,214
------------
</TABLE>
82
<PAGE>
EVERGREEN
Stock Selector Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Insurance - 2.7%
55,650 Allmerica Financial Corp. .............................. $ 2,838,150
86,417 American International Group, Inc....................... 9,462,661
20,300 MGIC Investment Corp.................................... 885,588
------------
13,186,399
------------
Internet & Catalog Retail - 0.7%
39,900 * CDW Computer Centers, Inc............................. 3,369,056
------------
Internet Software & Services - 1.7%
59,640 * America Online, Inc. ................................. 4,010,790
7,450 * Ariba, Inc. .......................................... 1,561,706
37,374 * PSINet, Inc. ......................................... 1,271,300
6,800 * Yahoo!, Inc. ......................................... 1,165,350
------------
8,009,146
------------
Media - 5.4%
59,250 * AMFM, Inc. ........................................... 3,680,906
111,650 CBS Corp................................................ 6,322,181
44,950 Interpublic Group of Companies, Inc. ................... 2,123,888
83,500 Seagram Co., Ltd. ...................................... 4,968,250
51,965 Time Warner, Inc. ...................................... 5,196,500
29,550 Tribune Co.............................................. 1,080,422
115,990 * USA Networks, Inc. ................................... 2,617,024
------------
25,989,171
------------
Metals & Mining - 2.4%
74,300 Alcoa, Inc. ............................................ 5,219,575
128,250 Inco, Ltd............................................... 2,348,578
48,900 Newmont Mining Corp. ................................... 1,097,194
221,700 Worthington Industries, Inc. ........................... 2,743,537
------------
11,408,884
------------
Multiline Retail - 2.1%
49,023 Target Corp. ........................................... 3,664,469
114,840 Wal-Mart Stores, Inc. .................................. 6,373,620
------------
10,038,089
------------
Oil & Gas - 5.1%
213,922 Anadarko Petroleum Corp. ............................... 8,276,107
84,657 Apache Corp. ........................................... 4,211,686
60,103 Exxon Mobil Corp. ...................................... 4,676,765
123,200 Kerr-McGee Corp. ....................................... 7,114,800
------------
24,279,358
------------
Paper & Forest Products - 0.4%
30,200 Boise Cascade Corp. .................................... 1,049,450
20,050 Champion International Corp. ........................... 1,067,663
------------
2,117,113
------------
Personal Products - 2.0%
58,400 Colgate-Palmolive Co.................................... 3,292,300
58,940 Gillette Co. ........................................... 2,221,301
74,600 Kimberly-Clark Corp. ................................... 4,177,600
------------
9,691,201
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Pharmaceuticals - 5.3%
37,094 American Home Products Corp............................. $ 1,989,166
30,800 * Elan Corp. Plc, ADR................................... 1,463,000
45,211 Merck & Co., Inc. ...................................... 2,808,733
115,866 Pfizer, Inc............................................. 4,236,351
183,750 Teva Pharmaceutical Industries, Ltd., ADR............... 6,856,172
80,127 Warner-Lambert Co. ..................................... 7,812,382
------------
25,165,804
------------
Road & Rail - 1.0%
57,400 Kansas City Southern Industries, Inc. .................. 4,932,813
------------
Semiconductor Equipment & Products - 9.3%
24,050 * Advanced Micro Devices, Inc........................... 1,372,353
30,800 * Applied Materials, Inc................................ 2,902,900
20,450 Intel Corp. ............................................ 2,698,122
89,420 * KLA-Tencor Corp....................................... 7,533,635
46,350 * LSI Logic Corp........................................ 3,366,169
14,700 Micron Technology, Inc.................................. 1,852,200
49,700 * National Semiconductor Corp........................... 3,013,062
19,750 * Novellus Systems, Inc................................. 1,108,469
12,000 * PMC-Sierra, Inc....................................... 2,444,250
36,750 * Teradyne, Inc......................................... 3,022,687
76,832 Texas Instruments, Inc. ................................ 12,293,120
18,450 * Vitesse Semiconductor Corp. .......................... 1,775,813
15,300 * Xilinx, Inc. ......................................... 1,267,031
------------
44,649,811
------------
Software - 8.4%
18,350 Adobe Systems, Inc...................................... 2,042,584
52,050 Autodesk, Inc........................................... 2,368,275
65,950 * Informix Corp......................................... 1,117,028
208,458 * Microsoft Corp. ...................................... 22,148,663
49,750 * Network Associates, Inc............................... 1,604,438
109,700 * Oracle Systems Corp................................... 8,563,456
19,950 * Remedy Corp. ......................................... 840,394
11,850 * Siebel Systems, Inc................................... 1,415,334
------------
40,100,172
------------
Specialty Retail - 3.7%
93,246 * Abercrombie & Fitch Co., Cl. A........................ 1,491,936
74,250 * ADC Telecommunications, Inc........................... 4,000,219
56,300 Circuit City Stores, Inc................................ 3,427,262
46,600 Gap, Inc. .............................................. 2,321,263
24,100 Home Depot, Inc. ....................................... 1,554,450
80,828 Lowe's Companies, Inc. ................................. 4,718,334
------------
17,513,464
------------
Wireless Telecommunications Services - 0.7%
23,170 * Nextel Communications, Inc., Cl. A.................... 3,434,953
------------
Total Common Stocks
(cost $374,496,462).................................... $464,942,653
------------
</TABLE>
83
<PAGE>
EVERGREEN
Stock Selector Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
PREFERRED STOCKS - 0.6%
Media - 0.6%
57,269 News Corp., Ltd.
(cost $1,051,120)................................... $ 2,734,595
------------
Total Long-Term Investments
(cost $375,547,582)................................. 467,677,248
------------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
SHORT-TERM INVESTMENTS - 0.2%
U.S. Treasury Bills
$ 845,000 5.70%, 6/29/2000
(cost $833,360)..................................... 833,360
------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C> <C>
REPURCHASE AGREEMENTS - 1.5%
$7,289,951 Dresdner Bank
5.90%, purchased 03/31/2000,
maturing 04/03/2000,
maturity value $7,293,535
(cost $7,289,951) (a)........................ $ 7,289,951
------------
Total Investments -
(cost $383,670,893).......................... 99.6% 475,800,559
Other Assets and
Liabilities - net............................ 0.4 1,999,897
----- ------------
Net Assets.................................... 100.0% $477,800,456
===== ============
</TABLE>
(a) The repurchase agreement is fully collateralized by: $7,440,372 U.S. Trea-
sury Bond, 8.75%, 5/15/2017 value including accrued interest $7,630,395.
* Non-income producing security.
Summary of Abbreviations
ADRAmerican Depository Receipt
See Combined Notes to Financial Statements.
84
<PAGE>
EVERGREEN
Strategic Growth Fund
Schedule of Investments
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 98.2%
Biotechnology - 1.9%
80,000 * Amgen, Inc.......................................... $ 4,910,000
146,000 * Genzyme Transgenics Corp............................ 2,920,000
165,000 * Immmunex Corp....................................... 10,467,188
40,000 * MedImmune, Inc...................................... 6,965,000
--------------
25,262,188
--------------
Commercial Services &
Supplies - 1.2%
300,000 Paychex, Inc.......................................... 15,712,500
--------------
Communications Equipment - 13.9%
135,000 * CIENA Corp. (b)..................................... 17,026,875
800,000 * Cisco Systems, Inc.................................. 61,850,000
140,000 Ericsson LM Telephone Co., Cl. B, ADR................. 13,133,750
260,000 Motorola, Inc......................................... 37,017,500
200,000 Nokia Corp., ADR...................................... 43,450,000
100,000 Nortel Networks Corp. (b)............................. 12,600,000
--------------
185,078,125
--------------
Computers & Peripherals - 8.4%
336,200 * EMC Corp............................................ 42,025,000
270,000 International Business Machines Corp.................. 31,860,000
100,000 Palm, Inc. (b)........................................ 4,487,500
193,500 * Seagate Technology.................................. 11,658,375
230,000 * Sun Microsystems, Inc............................... 21,551,719
--------------
111,582,594
--------------
Diversified Financials - 8.8%
110,000 American Express Co................................... 16,383,125
493,800 Citigroup, Inc........................................ 29,288,513
275,000 General Electric Co................................... 42,676,562
210,000 Morgan Stanley, Dean Witter & Co...................... 17,128,125
105,000 Vivendi SA............................................ 12,115,400
--------------
117,591,725
--------------
Diversified Telecommunication Services - 2.3%
235,000 * Global Crossing, Ltd. (b)........................... 9,620,313
155,000 * McLeod USA, Inc., Cl. A (b)......................... 13,145,937
125,000 Sonera Oyj............................................ 8,534,163
--------------
31,300,413
--------------
Electronic Equipment & Instruments - 4.2%
205,000 * JDS Uniphase Corp................................... 24,715,313
255,500 * Sandisk Corp........................................ 31,298,750
--------------
56,014,063
--------------
Energy Equipment & Services - 6.3%
200,000 * BJ Services Co., Inc. .............................. 14,775,000
300,000 Diamond Offshore Drilling, Inc. (b)................... 11,981,250
515,000 ENSCO International, Inc.............................. 18,604,375
485,000 * Nabors Industries, Inc.............................. 18,824,062
300,000 * R&B Falcon Corp..................................... 5,906,250
250,000 * Weatherford International, Inc...................... 14,734,375
--------------
84,825,312
--------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Health Care Equipment &
Supplies - 1.1%
281,600 Medtronic, Inc. ...................................... $ 14,484,800
--------------
Health Care Providers &
Services - 2.0%
750,000 * Health Management Associates, Inc., Cl. A........... 10,687,500
280,000 United Healthcare Corp. .............................. 16,695,000
--------------
27,382,500
--------------
Industrial Conglomerates - 1.5%
400,000 Tyco International, Ltd. ............................. 19,950,000
--------------
Insurance - 1.6%
196,875 American International Group, Inc. ................... 21,557,813
--------------
Internet Software & Services - 2.5%
325,000 * America Online, Inc................................. 21,856,250
75,000 VeriSign, Inc......................................... 11,212,500
--------------
33,068,750
--------------
Media - 5.9%
300,000 * CBS Corp............................................ 16,987,500
140,000 * Clear Channel Communications, Inc. ................. 9,668,750
300,000 Seagram Co., Ltd...................................... 17,850,000
188,900 Time Warner, Inc...................................... 18,890,000
300,000 * Viacom, Inc., Cl. B................................. 15,825,000
--------------
79,221,250
--------------
Multiline Retail - 2.3%
230,000 * Costco Wholesale Corp............................... 12,089,375
330,000 Wal-Mart Stores, Inc.................................. 18,315,000
--------------
30,404,375
--------------
Oil & Gas - 1.2%
335,000 Apache Corp........................................... 16,666,250
--------------
Pharmaceuticals - 8.6%
765,000 American Home Products Corp........................... 41,023,125
735,050 Pharmacia & Upjohn, Inc............................... 43,551,712
275,000 Schering-Plough Corp.................................. 10,106,250
400,000 * Shire Pharmaceuticals Group Plc,
ADR (b).............................................. 20,500,000
--------------
115,181,087
--------------
Semiconductor Equipment & Products - 12.6%
70,000 * Broadcom Corp. (b).................................. 17,001,250
50,000 Infineon Technologies AG.............................. 2,731,411
450,000 Intel Corp. .......................................... 59,371,875
285,000 * Microchip Technology, Inc........................... 18,738,750
160,000 Micron Technology, Inc. .............................. 20,160,000
75,000 * PMC-Sierra, Inc. ................................... 15,276,563
204,200 * Teradyne, Inc. ..................................... 16,795,450
182,800 * Vitesse Semiconductor Corp.......................... 17,594,500
--------------
167,669,799
--------------
</TABLE>
85
<PAGE>
EVERGREEN
Strategic Growth Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Software - 6.8%
305,000 * Microsoft Corp...................................... $ 32,406,250
400,000 * Oracle Systems Corp................................. 31,225,000
207,575 * Veritas Software Corp............................... 27,192,325
--------------
90,823,575
--------------
Specialty Retail - 3.2%
330,000 * Best Buy Co., Inc................................... 28,380,000
224,100 Home Depot, Inc....................................... 14,454,450
--------------
42,834,450
--------------
Wireless Telecommunications Services - 1.9%
93,400 Vodafone AirTouch Plc, ADR (b)........................ 5,189,537
158,310 * Voicestream Wireless Corp. (b)...................... 20,392,307
--------------
25,581,844
--------------
Total Common Stocks
(cost $801,460,290).................................. $1,312,193,413
--------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
SHORT-TERM INVESTMENTS - 8.0%
Mutual Fund Shares - 5.9%
78,071,822 Navigator Prime Portfolio
(cost $78,071,822) (c).......................... $ 78,071,822
--------------
U.S. Treasury Obligations - 0.1%
59,500 U.S. Treasury Bonds & Notes 3.38% - 13.88%,
4/30/2000 - 11/15/2026
(cost $1,652,832) (c)........................... 1,652,832
--------------
<CAPTION>
Principal
Amount Value
<C> <S> <C>
Repurchase Agreement - 2.1%
10,819,261 Evergreen Joint Repurchase Agreement, Investments
in repurchase agreements, in a joint trading
account, purchased 3/31/2000, 6.10%, maturing
4/3/2000, maturity value $27,909,180
(cost $27,895,000) (a).......................... 27,895,000
--------------
Total Short-Term Investments
(cost $105,966,822)............................. 107,619,654
--------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -
(cost $909,079,944)...................... 106.3% 1,419,813,067
Other Assets and
Liabilities - net........................ (6.3) (84,268,016)
----- --------------
Net Assets................................ 100.0% $1,335,545,051
===== ==============
</TABLE>
(a) The repurchase agreement is fully collateralized by U.S. government
and/or agency obligations based on market prices plus accrued
interest at March 31, 2000.
(b) All or a portion of this security is on loan.
(c) Represents investment in cash collateral received for securities on
loan.
* Non-income producing security.
Summary of Abbreviations
ADRAmerican Depository Receipt
See Combined Notes to Financial Statements.
86
<PAGE>
EVERGREEN
Tax Strategic Equity Fund
Schedule of Investments
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - 96.4%
Aerospace & Defense - 0.8%
1,000 Boeing Co. ........................................... $ 37,938
900 General Motors Corp., Cl. H........................... 112,050
1,000 United Technologies Corp. ............................ 63,187
-----------
213,175
-----------
Air Freight & Couriers - 0.2%
820 United Parcel Service, Inc., Cl. B.................... 51,660
-----------
Automobiles - 0.6%
2,000 Ford Motor Co. ....................................... 91,875
1,100 General Motors Corp. ................................. 91,094
-----------
182,969
-----------
Banks - 2.3%
8,700 BankAmerica Corp. .................................... 456,206
1,570 Chase Manhattan Corp. ................................ 136,885
1,200 Wells Fargo Co. ...................................... 49,125
-----------
642,216
-----------
Beverages - 1.6%
1,500 Anheuser Busch Companies, Inc. ....................... 93,375
10,000 Coca-Cola Co. Femsa SA, ADR........................... 185,625
5,400 Pepsico, Inc. ........................................ 186,637
-----------
465,637
-----------
Biotechnology - 0.5%
2,100 * Amgen, Inc. ........................................ 128,888
-----------
Chemicals - 0.4%
2,000 DuPont (E.I.) De Nemours & Co. ....................... 105,750
310 Praxair, Inc. ........................................ 12,904
-----------
118,654
-----------
Commercial Services &
Supplies - 0.9%
1,000 Automatic Data Processing, Inc. ...................... 48,250
2,000 * Computer Sciences Corp. ............................ 158,250
800 First Data Corp. ..................................... 35,400
-----------
241,900
-----------
Communications Equipment - 10.8%
15,300 * Cisco Systems, Inc. ................................ 1,182,881
470 Corning, Inc. ........................................ 91,180
1,200 Ericsson LM Telephone Co., Cl. B, ADR................. 112,575
600 * Juniper Networks, Inc. ............................. 158,138
1,800 Motorola, Inc. ....................................... 256,275
1,700 Nokia Corp., ADR...................................... 369,325
4,930 Nortel Networks Corp. ................................ 621,180
1,780 * Qualcomm, Inc. ..................................... 265,776
-----------
3,057,330
-----------
Computers & Peripherals - 7.4%
3,000 Compaq Computer Corp. ................................ 79,875
4,900 * Dell Computer Corp. ................................ 264,294
2,900 * EMC Corp. .......................................... 362,500
1,000 * Gateway, Inc. ...................................... 53,000
2,000 Hewlett-Packard Co. .................................. 265,125
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Computers & Peripherals - continued
6,000 International Business Machines Corp.................. $ 708,000
3,800 * Sun Microsystems, Inc............................... 356,072
-----------
2,088,866
-----------
Diversified Financials - 9.9%
2,000 American Express Co................................... 297,875
7,350 Citigroup, Inc........................................ 435,947
1,700 Federal Home Loan Mtge. Assn. ........................ 75,119
1,700 Federal National Mortgage Assn. ...................... 95,944
9,060 General Electric Co................................... 1,405,998
4,000 Merrill Lynch & Co., Inc.............................. 420,000
1,060 Morgan Stanley, Dean Witter & Co...................... 86,456
-----------
2,817,339
-----------
Diversified Telecommunication Services - 7.6%
5,100 AT&T Corp............................................. 286,875
2,800 Bell Atlantic Corp.................................... 171,150
22,550 * Global Crossing, Ltd. .............................. 923,141
1,700 GTE Corp.............................................. 120,700
5,800 * MCI WorldCom, Inc. ................................. 262,812
6,400 SBC Communications, Inc............................... 268,800
2,000 Sprint Corp. ......................................... 126,000
-----------
2,159,478
-----------
Electric Utilities - 0.5%
1,400 Duke Energy Corp. .................................... 73,500
2,600 Southern Co. ......................................... 56,550
-----------
130,050
-----------
Electronic Equipment & Instruments - 4.9%
20,000 * Meade Instruments Corp. ............................ 1,380,000
-----------
Energy Equipment & Services - 0.7%
2,400 Baker Hughes, Inc. ................................... 72,600
800 Halliburton Co. ...................................... 32,800
1,000 Schlumberger, Ltd. ................................... 76,500
193 Transocean Sedco Forex, Inc. ......................... 9,903
-----------
191,803
-----------
Food & Drug Retailing - 0.3%
1,500 CVS Corp. ............................................ 56,344
800 * Safeway, Inc. ...................................... 36,200
-----------
92,544
-----------
Health Care Equipment &
Supplies - 2.3%
400 Baxter International, Inc. ........................... 25,075
400 Guidant Corp. ........................................ 23,525
4,000 Medtronic, Inc. ...................................... 205,750
4,000 PE Corp-PE Biosystems Group........................... 386,000
-----------
640,350
-----------
Hotels Restaurants & Leisure - 0.3%
2,300 McDonald's Corp. ..................................... 86,394
-----------
</TABLE>
87
<PAGE>
EVERGREEN
Tax Strategic Equity Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Household Durables - 0.1%
1,500 Ethan Allen Interiors, Inc. .......................... $ 37,500
-----------
Industrial Conglomerates - 1.9%
3,750 Honeywell International, Inc. ........................ 197,578
1,400 Minnesota Mining & Manufacturing Co. ................. 123,988
4,300 Tyco International, Ltd. ............................. 214,462
-----------
536,028
-----------
Insurance - 3.5%
5,000 AFLAC, Inc. .......................................... 227,812
4,062 American International Group, Inc. ................... 444,789
10,000 Mony Group, Inc. ..................................... 323,125
-----------
995,726
-----------
Internet Software & Services - 1.6%
3,600 * America Online, Inc. ............................... 242,100
1,200 * Yahoo!, Inc. ....................................... 205,650
-----------
447,750
-----------
Leisure Equipment & Products - 0.2%
900 Eastman Kodak Co. .................................... 48,881
-----------
Media - 4.8%
1,400 CBS Corp. ............................................ 79,275
1,700 * Clear Channel Communications, Inc. ................. 117,406
10,900 Disney (Walt) Co. .................................... 450,988
6,400 Time Warner, Inc. .................................... 640,000
1,300 * Viacom, Inc., Cl. B................................. 68,575
-----------
1,356,244
-----------
Multiline Retail - 2.2%
1,800 * Costco Wholesale Corp. ............................. 94,612
800 Target Corp. ......................................... 59,800
8,700 Wal-Mart Stores, Inc. ................................ 482,850
-----------
637,262
-----------
Oil & Gas - 4.6%
2,000 Chevron Corp. ........................................ 184,875
10,252 Exxon Mobil Corp. .................................... 797,734
4,900 Royal Dutch Petroleum Co. ............................ 282,056
500 Texaco, Inc. ......................................... 26,812
-----------
1,291,477
-----------
Paper & Forest Products - 0.1%
700 International Paper Co. .............................. 29,925
-----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>
COMMON STOCKS - continued
Personal Products - 1.0%
950 Colgate-Palmolive Co. ................................ $ 53,556
3,000 Gillette Co. ......................................... 113,063
2,200 Procter & Gamble Co. ................................. 123,750
-----------
290,369
-----------
Pharmaceuticals - 5.4%
1,500 Abbott Laboratories................................... 52,781
2,500 American Home Products Corp. ......................... 134,063
3,600 Bristol-Myers Squibb Co. ............................. 207,900
1,900 Lilly (Eli) & Co. .................................... 119,700
3,800 Merck & Co., Inc. .................................... 236,075
7,800 Pfizer, Inc. ......................................... 285,187
800 Pharmacia & Upjohn, Inc. ............................. 47,400
1,900 Schering-Plough Corp. ................................ 69,825
4,000 Warner-Lambert Co. ................................... 390,000
-----------
1,542,931
-----------
Semiconductor Equipment & Products - 6.2%
2,400 * Applied Materials, Inc. ............................ 226,200
9,600 Intel Corp. .......................................... 1,266,600
1,700 Texas Instruments, Inc. .............................. 272,000
-----------
1,764,800
-----------
Software - 7.3%
850 Computer Associates International, Inc. .............. 50,309
12,700 * Microsoft Corp. .................................... 1,349,375
8,600 * Oracle Systems Corp. ............................... 671,338
-----------
2,071,022
-----------
Specialty Retail - 1.2%
3,900 Home Depot, Inc. ..................................... 251,550
2,000 Tandy Corp. .......................................... 101,500
-----------
353,050
-----------
Tobacco - 0.2%
2,500 Philip Morris Cos., Inc. ............................. 52,813
-----------
Wireless Telecommunications Services - 3.5%
5,000 * Nextel Communications, Inc., Cl. A.................. 741,250
4,000 * Sprint Corp. (PCS Group), Ser. 1.................... 261,250
-----------
1,002,500
-----------
Real Estate - 0.6%
5,148 Inversiones y Representaciones, SA, GDR............... 160,875
-----------
Total Common Stocks
(cost $19,816,893)................................... 27,308,406
-----------
</TABLE>
88
<PAGE>
EVERGREEN
Tax Strategic Equity Fund
EVERGREEN
Tax Strategic Equity Fund
Schedule of Investments (continued)
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
REPURCHASE AGREEMENTS - 15.2%
$4,294,000 State Street Bank & Trust Co., 6.05%, purchased
03/31/2000, maturing 04/03/2000, maturity value
$4,296,165
(cost $4,294,000) (a)............................. $ 4,294,000
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
Total Investments -
(cost $24,110,893)........................... 111.6% 31,602,406
Other Assets and
Liabilities - net............................ (11.6) (3,278,802)
----- -----------
Net Assets.................................... 100.0% $28,323,604
===== ===========
</TABLE>
(a) The repurchase agreement is fully collateralized by: $4,405,000 FFCB,
5.70%, 5/17/2002; value including accrued interest $4,384,140.
* Non-income producing security.
Summary of Abbreviations
ADRAmerican Depository Receipt
GDRGlobal Depository Receipt
See Combined Notes to Financial Statements.
89
<PAGE>
EVERGREEN
Domestic Growth Funds
Statements of Assets and Liabilities
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Aggressive Capital Growth Masters
Growth Fund Growth Fund Evergreen Fund Fund Fund
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Identified cost of
securities............ $275,592,368 $382,414,592 $1,518,506,007 $531,605,456 $262,627,605
Repurchase agreements,
at amortized cost..... 37,330,000 10,819,261 21,644,000 20,166,994 4,499,000
-------------------------------------------------------------------------------------------------
Total identified cost
of investments........ 312,922,368 393,233,853 1,540,150,007 551,772,450 267,126,605
Net unrealized gains on
securities............ 147,828,860 50,289,030 535,793,651 185,451,043 58,722,136
-------------------------------------------------------------------------------------------------
Market value of
securities............ 460,751,228 443,522,883 2,075,943,658 737,223,493 325,848,741
Cash................... 626 0 921 0 3,474
Receivable for
securities sold....... 7,256,803 0 3,662,489 12,069,633 5,476,013
Receivable for Fund
shares sold........... 2,313,531 1,597,055 1,108,689 275,622 1,167,722
Dividends and interest
receivable............ 71,536 673,479 1,012,696 62,114 187,638
Deferred organization
expenses.............. 1,752 0 0 0 0
Prepaid expenses and
other assets.......... 36,978 96,954 102,567 78,420 38,114
-------------------------------------------------------------------------------------------------
Total assets........... 470,432,454 445,890,371 2,081,831,020 749,709,282 332,721,702
-------------------------------------------------------------------------------------------------
Liabilities
Payable for securities
purchased............. 22,267,013 0 19,069,706 9,746,393 4,868,022
Payable for Fund shares
redeemed.............. 1,022,217 1,415,454 4,371,210 2,434,897 906,268
Payable for securities
on loan............... 0 7,370,000 0 90,748,384 0
Advisory fee payable... 18,501 28,433 131,395 24,903 22,799
Distribution Plan
expenses payable...... 15,122 22,204 59,779 37,766 13,903
Due to other related
parties............... 3,558 5,331 0 7,717 0
Accrued expenses and
other liabilities..... 57,474 74,548 307,511 198,452 147,137
-------------------------------------------------------------------------------------------------
Total liabilities...... 23,383,885 8,915,970 23,939,601 103,198,512 5,958,129
-------------------------------------------------------------------------------------------------
Net assets.............. $447,048,569 $436,974,401 $2,057,891,419 $646,510,770 $326,763,573
-------------------------------------------------------------------------------------------------
Net assets represented
by
Paid-in capital........ $182,159,330 $353,633,926 $ 813,604,654 $339,516,721 $242,954,149
Net investment loss.... (1,636,452) (1,525,928) (6,349,101) (4,063,811) (1,599,294)
Accumulated net
realized gains on
securities and foreign
currency related
transactions.......... 118,696,831 34,577,373 714,842,215 125,606,817 26,686,584
Net unrealized gains on
securities and foreign
currency related
transactions.......... 147,828,860 50,289,030 535,793,651 185,451,043 58,722,134
-------------------------------------------------------------------------------------------------
Total net assets........ $447,048,569 $436,974,401 $2,057,891,419 $646,510,770 $326,763,573
-------------------------------------------------------------------------------------------------
Net assets consist of
Class A................ $279,739,896 $218,854,830 $ 197,402,355 $113,290,067 $198,955,282
Class B................ 109,539,106 3,422,824 671,140,717 2,162,524 116,293,180
Class C................ 10,884,611 214,688,160 14,943,585 443,828,697 7,481,707
Class Y................ 46,884,956 8,587 1,174,404,762 87,229,482 4,033,404
-------------------------------------------------------------------------------------------------
Total net assets........ $447,048,569 $436,974,401 $2,057,891,419 $646,510,770 $326,763,573
-------------------------------------------------------------------------------------------------
Shares outstanding
Class A................ 7,282,762 8,721,401 7,134,296 4,723,909 14,999,970
Class B................ 2,968,577 136,806 24,828,644 94,138 8,835,274
Class C................ 295,833 9,124,425 553,528 19,337,680 569,401
Class Y................ 1,199,814 340 41,969,094 3,617,118 303,315
-------------------------------------------------------------------------------------------------
Net asset value per
share
Class A................ $ 38.41 $ 25.09 $ 27.67 $ 23.98 $ 13.26
-------------------------------------------------------------------------------------------------
Class A--Offering price
(based on sales
charge of 4.75%)...... $ 40.33 $ 26.34 $ 29.05 $ 25.18 $ 13.92
-------------------------------------------------------------------------------------------------
Class B................ $ 36.90 $ 25.02 $ 27.03 $ 22.97 $ 13.16
-------------------------------------------------------------------------------------------------
Class C................ $ 36.79 $ 23.53 $ 27.00 $ 22.95 $ 13.14
-------------------------------------------------------------------------------------------------
Class Y................ $ 39.08 $ 25.25 $ 27.98 $ 24.12 $ 13.30
-------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
90
<PAGE>
EVERGREEN
Domestic Growth Funds
Statements of Assets and Liabilities
March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Stock Tax
Small Company Selector Strategic Strategic
Omega Fund Growth Fund Fund Growth Fund Equity Fund
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Identified cost of
securities............ $1,478,128,167 $1,041,727,849 $376,380,942 $ 881,184,944 $19,816,893
Repurchase agreements,
at amortized cost..... 47,576,000 18,281,000 7,289,951 27,895,000 4,294,000
----------------------------------------------------------------------------------------------------
Total identified cost
of investments........ 1,525,704,167 1,060,008,849 383,670,893 909,079,944 24,110,893
Net unrealized gains on
securities............ 504,622,586 434,208,287 92,129,666 510,733,123 7,491,513
----------------------------------------------------------------------------------------------------
Market value of
securities............ 2,030,326,753 1,494,217,136 475,800,559 1,419,813,067 31,602,406
Cash................... 341 242 0 191 273
Receivable for
securities sold....... 28,170,471 58,557,377 2,586,005 4,078,011 193,613
Receivable for Fund
shares sold........... 23,761,078 2,300,905 236,575 1,334,710 0
Dividends and interest
receivable............ 284,501 105,667 370,474 569,451 14,029
Receivable for daily
variation margin on
closed futures
contracts............. 0 0 68,750 0 0
Prepaid expenses and
other assets.......... 411,766 200,417 54,684 249,317 36,496
----------------------------------------------------------------------------------------------------
Total assets........... 2,082,954,910 1,555,381,744 479,117,047 1,426,044,747 31,846,817
----------------------------------------------------------------------------------------------------
Liabilities
Payable for securities
purchased............. 40,991,902 32,302,854 1,270,573 9,783,322 3,446,769
Payable for Fund shares
redeemed.............. 1,462,141 1,812,571 0 684,007 65,901
Payable for securities
on loan............... 172,674,946 195,567,504 0 79,724,654 0
Advisory fee payable... 73,413 42,790 25,469 43,655 2,017
Distribution Plan
expenses payable...... 102,562 31,816 533 32,608 1,658
Due to other related
parties............... 14,782 10,498 3,859 10,777 232
Accrued expenses and
other liabilities..... 52,449 151,241 16,157 220,673 6,636
----------------------------------------------------------------------------------------------------
Total liabilities...... 215,372,195 229,919,274 1,316,591 90,499,696 3,523,213
----------------------------------------------------------------------------------------------------
Net assets.............. $1,867,582,715 $1,325,462,470 $477,800,456 $1,335,545,051 $28,323,604
----------------------------------------------------------------------------------------------------
Net assets represented
by
Paid-in capital........ $1,237,593,868 $ 554,376,983 $334,702,651 $ 673,961,787 $21,909,667
Net investment loss.... (5,921,746) (3,794,982) (11,825) (2,391,853) (81,149)
Accumulated net
realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions.. 131,288,007 340,672,180 50,979,964 153,242,101 (996,427)
Net unrealized gains on
securities, futures
contracts and foreign
currency related
transactions.......... 504,622,586 434,208,289 92,129,666 510,733,016 7,491,513
----------------------------------------------------------------------------------------------------
Total net assets........ $1,867,582,715 $1,325,462,470 $477,800,456 $1,335,545,051 $28,323,604
----------------------------------------------------------------------------------------------------
Net assets consists of
Class A................ $ 739,255,568 $1,225,393,969 $ 23,069,294 $1,239,108,316 $ 9,062,005
Class B................ 981,956,174 86,076,417 3,014,071 89,133,480 13,615,771
Class C................ 130,643,215 9,332,369 417,337 5,425,052 4,360,544
Class Y................ 15,727,758 4,659,715 451,299,754 1,878,203 1,285,284
----------------------------------------------------------------------------------------------------
Total net assets........ $1,867,582,715 $1,325,462,470 $477,800,456 $1,335,545,051 $28,323,604
----------------------------------------------------------------------------------------------------
Shares outstanding
Class A................ 18,256,089 108,864,947 1,126,129 89,246,811 529,842
Class B................ 26,179,776 7,778,362 150,202 6,547,184 803,859
Class C................ 3,475,040 842,673 20,497 398,030 256,956
Class Y................ 385,768 411,295 21,957,606 136,795 74,727
----------------------------------------------------------------------------------------------------
Net asset value per
share
Class A................ $ 40.49 $ 11.26 $ 20.49 $ 13.88 $ 17.10
----------------------------------------------------------------------------------------------------
Class A--Offering price
(based on sales
charge of 4.75%)...... $ 42.51 $ 11.82 $ 21.51 $ 14.57 $ 17.95
----------------------------------------------------------------------------------------------------
Class B................ $ 37.51 $ 11.07 $ 20.07 $ 13.61 $ 16.94
----------------------------------------------------------------------------------------------------
Class C................ $ 37.59 $ 11.07 $ 20.36 $ 13.63 $ 16.97
----------------------------------------------------------------------------------------------------
Class Y................ $ 40.77 $ 11.33 $ 20.55 $ 13.73 $ 17.20
----------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
91
<PAGE>
EVERGREEN
Domestic Growth Funds
Statements of Operations
Six Months Ended March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Aggressive
Growth Capital Evergreen Growth Masters
Fund Growth Fund Fund Fund Fund
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income
Dividends (net of
foreign withholding
taxes of $821, $0,
$16,931, $0 and $0,
respectively)......... $ 291,282 $ 3,019,686 $ 7,673,849 $ 230,468 $ 903,999
Securities lending
income................ 0 9,997 0 142,112 0
Interest............... 304,849 503,143 1,675,835 1,155,914 333,817
-----------------------------------------------------------------------------------------------
Total investment
income................. 596,131 3,532,826 9,349,684 1,528,494 1,237,816
-----------------------------------------------------------------------------------------------
Expenses
Advisory fee........... 965,795 1,983,461 8,706,538 1,928,720 1,330,650
Distribution Plan
expenses.............. 715,736 1,521,629 3,722,402 2,072,862 752,549
Administrative services
fees.................. 115,859 371,899 504,988 413,297 91,794
Transfer agent fee..... 303,294 891,834 2,159,470 624,155 462,497
Trustees' fees and
expenses.............. 6,090 7,104 40,502 9,371 2,589
Printing and postage
expenses.............. 25,181 44,811 124,480 143,631 21,925
Custodian fee.......... 47,011 157,456 319,154 74,528 33,171
Registration and filing
fees.................. 21,370 50,715 31,689 79,978 74,672
Professional fees...... 8,488 30,746 21,164 26,936 8,707
Organization expenses.. 2,590 0 0 0 0
Other.................. 18,567 10,936 104,197 231,172 58,326
-----------------------------------------------------------------------------------------------
Total expenses......... 2,229,981 5,070,591 15,734,584 5,604,650 2,836,880
Less: Expense
reductions............ (12,825) (11,837) (147,727) (12,345) (5,006)
-----------------------------------------------------------------------------------------------
Net expenses........... 2,217,156 5,058,754 15,586,857 5,592,305 2,831,874
-----------------------------------------------------------------------------------------------
Net investment loss.... (1,621,025) (1,525,928) (6,237,173) (4,063,811) (1,594,058)
-----------------------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions
Net realized gains or
losses on:
Securities............. 120,545,131 42,463,393 768,502,487 129,367,580 27,260,588
Foreign currency
related transactions.. 0 0 0 0 (714)
-----------------------------------------------------------------------------------------------
Net realized gains on
securities and foreign
currency related
transactions.......... 120,545,131 42,463,393 768,502,487 129,367,580 27,259,874
-----------------------------------------------------------------------------------------------
Net change in
unrealized gains or
losses on securities
and foreign currency
related transactions.. 50,784,317 (19,787,282) (409,419,302) 118,280,435 53,621,514
-----------------------------------------------------------------------------------------------
Net realized and
unrealized gains on
securities and foreign
currency related
transactions.......... 171,329,448 22,676,111 359,083,185 247,648,015 80,881,388
-----------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ $169,708,423 $ 21,150,183 $ 352,846,012 $243,584,204 $79,287,330
-----------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
92
<PAGE>
EVERGREEN
Domestic Growth Funds
Statements of Operations
Six Months Ended March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Small Tax
Company Stock Strategic Strategic
Omega Growth Selector Growth Equity
Fund Fund Fund Fund Fund
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income
Dividends (net of
foreign withholding
taxes of $0, $0,
$14,902, $0 and $239,
respectively)......... $ 1,430,982 $ 1,164,044 $ 1,990,831 $ 2,503,151 $ 79,612
Securities lending
income................ 403,893 579,605 0 305,321 0
Interest............... 1,835,532 678,591 278,335 754,224 69,260
--------------------------------------------------------------------------------------------
Total investment
income................. 3,670,407 2,422,240 2,269,166 3,562,696 148,872
--------------------------------------------------------------------------------------------
Expenses
Advisory fee........... 3,524,000 2,642,317 1,711,638 2,692,414 104,733
Distribution Plan
expenses.............. 4,124,024 1,886,400 43,546 1,864,784 78,237
Transfer agent fee..... 1,073,225 967,669 73,277 594,319 14,128
Administrative services
fees.................. 406,689 352,739 145,072 351,648 7,406
Trustees' fees and
expenses.............. 23,756 23,538 6,551 22,061 226
Printing and postage
expenses.............. 112,663 91,303 26,080 122,521 2,350
Custodian fee.......... 212,096 208,175 46,726 170,015 6,987
Registration and filing
fees.................. 130,608 38,818 13,866 130,633 16,066
Professional fees...... 10,055 26,719 9,988 12,091 7,835
Other.................. 11,807 24,132 26,725 16,056 662
--------------------------------------------------------------------------------------------
Total expenses......... 9,628,923 6,261,810 2,103,469 5,976,542 238,630
Less: Expense
reductions............ (44,976) (85,783) (9,681) (51,920) (6,391)
Fee waivers.......... 0 0 0 0 (2,218)
--------------------------------------------------------------------------------------------
Net expenses........... 9,583,947 6,176,027 2,093,788 5,924,622 230,021
--------------------------------------------------------------------------------------------
Net investment income
(loss)................ (5,913,540) (3,753,787) 175,378 (2,361,926) (81,149)
--------------------------------------------------------------------------------------------
Net realized and
unrealized gains or
losses on securities,
futures contracts and
foreign currency
related transactions
Net realized gains or
losses on:
Securities............. 136,704,265 373,972,053 56,474,550 171,258,220 (405,910)
Futures contracts...... 0 0 (476,610) 0 0
Foreign currency
related transactions.. 0 0 0 87,480 0
--------------------------------------------------------------------------------------------
Net realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions.. 136,704,265 373,972,053 55,997,940 171,345,700 (405,910)
--------------------------------------------------------------------------------------------
Net change in
unrealized gains on
securities, futures
contracts and foreign
currency related
transactions.......... 386,129,527 228,720,101 9,375,800 264,817,533 4,900,438
--------------------------------------------------------------------------------------------
Net realized and
unrealized gains on
securities, futures
contracts and foreign
currency related
transactions.......... 522,833,792 602,692,154 65,373,740 436,163,233 4,494,528
--------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ $516,920,252 $598,938,367 $65,549,118 $433,801,307 $4,413,379
--------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
93
<PAGE>
EVERGREEN
Domestic Growth Funds
Statements of Changes in Net Assets
Six Months Ended March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Aggressive Capital
Growth Growth Evergreen Growth Masters
Fund Fund (a) Fund Fund (a) Fund
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operations
Net investment loss.... $ (1,621,025) $ (1,525,928) $ (6,237,173) $ (4,063,811) $ (1,594,058)
Net realized gains on
securities and foreign
currency related
transactions.......... 120,545,131 42,463,393 768,502,487 129,367,580 27,259,874
Net change in
unrealized gains or
losses on securities
and foreign currency
related transactions.. 50,784,317 (19,787,282) (409,419,302) 118,280,435 53,621,514
----------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 169,708,423 21,150,183 352,846,012 243,584,204 79,287,330
----------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net realized gains
Class A................ (20,816,669) (5,632,668) (7,730,128) (4,502,995) 0
Class B................ (7,498,494) (18,912) (28,422,225) (3,857) 0
Class C................ (661,363) (5,500,066) (593,074) (17,616,172) 0
Class Y................ (3,525,812) (28) (47,142,087) (2,301,558) 0
----------------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (32,502,338) (11,151,674) (83,887,514) (24,424,582) 0
----------------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 92,224,936 130,238,749 1,315,440,600 134,656,825 25,689,764
Payment for shares
redeemed.............. (67,201,429) (253,095,360) (1,530,366,325) (193,172,225) (37,224,411)
Net asset value of
shares issued in
reinvestment of
distributions......... 28,277,239 10,859,885 78,318,797 23,726,825 0
----------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 53,300,746 (111,996,726) (136,606,928) (34,788,575) (11,534,647)
----------------------------------------------------------------------------------------------------
Total increase in net
assets............... 190,506,831 (101,998,217) 132,351,570 184,371,047 67,752,683
Net assets
Beginning of period.... 256,541,738 538,972,618 1,925,539,849 462,139,723 259,010,890
----------------------------------------------------------------------------------------------------
End of period.......... $447,048,569 $ 436,974,401 $ 2,057,891,419 $ 646,510,770 $326,763,573
----------------------------------------------------------------------------------------------------
Overdistributed net
investment income or
accumulated net
investment loss........ $ (1,636,452) $ (1,525,928) $ (6,349,101) $ (4,063,811) $ (1,599,294)
----------------------------------------------------------------------------------------------------
</TABLE>
(a) Effective October 18, 1999, shareholders of Class A, Class B and Class Y
shares of Mentor Capital Growth Portfolio and Mentor Growth Portfolio be-
came owners of that number of full and fractional shares of Class A, Class
C, and Class Y shares, respectively, of Evergreen Capital Growth Fund and
Evergreen Growth Fund. In addition, Class B shares of Mentor Capital Growth
Portfolio and Mentor Growth Portfolio were redesignated as Class C shares
of Evergreen Capital Growth Fund and Evergreen Growth Fund, respectively.
See Combined Notes to Financial Statements.
94
<PAGE>
EVERGREEN
Domestic Growth Funds
Statements of Changes in Net Assets
Six Months Ended March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
Tax
Small Stock Strategic Strategic
Omega Company Growth Selector Growth Equity
Fund Fund Fund Fund Fund
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operations
Net investment income
(loss)................ $ (5,913,540) $ (3,753,787) $ 175,378 $ (2,361,926) $ (81,149)
Net realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions.. 136,704,265 373,972,053 55,997,940 171,345,700 (405,910)
Net realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions.. 386,129,527 228,720,101 9,375,800 264,817,533 4,900,438
-----------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 516,920,252 598,938,367 65,549,118 433,801,307 4,413,379
-----------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class Y................ 0 0 (281,764) 0 0
Net realized gains
Class A................ (14,155,787) 0 (2,421,370) (140,706,662) 0
Class B................ (16,797,293) 0 (310,757) (17,025,506) 0
Class C................ (1,310,986) 0 (20,384) (406,532) 0
Class Y................ (187,473) 0 (51,482,202) (43,520) 0
-----------------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (32,451,539) 0 (54,516,477) (158,182,220) 0
-----------------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 663,179,623 200,399,340 34,562,751 61,047,308 10,388,487
Payment for shares
redeemed.............. (85,794,982) (296,357,074) (122,355,202) (107,695,774) (4,031,442)
Net asset value of
shares issued in
reinvestment of
distributions......... 29,897,391 0 54,248,556 138,919,143 0
-----------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 607,282,032 (95,957,734) (33,543,895) 92,270,677 6,357,045
-----------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............... 1,091,750,745 502,980,633 (22,511,254) 367,889,764 10,770,424
Net assets
Beginning of period.... 775,831,970 822,481,837 500,311,710 967,655,287 17,553,180
-----------------------------------------------------------------------------------------------------
End of period.......... $1,867,582,715 $1,325,462,470 $ 477,800,456 $1,335,545,051 $28,323,604
-----------------------------------------------------------------------------------------------------
Overdistributed net
investment income or
accumulated net
investment loss........ $ (5,921,746) $ (3,794,982) $ (11,825) $ (2,391,853) $ (81,149)
-----------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
95
<PAGE>
EVERGREEN
Domestic Growth Funds
Statements of Changes in Net Assets
Year Ended September 30, 1999
<TABLE>
<CAPTION>
Aggressive Capital
Growth Growth Evergreen Growth Masters
Fund Fund (b) Fund Fund (b) Fund (a)
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operations
Net investment loss.... $ (2,572,063) $ (2,951,339) $ (1,256,075) $ (6,380,304) $ (1,695,742)
Net realized gains or
losses on securities
and foreign currency
related transactions.. 47,119,802 6,966,212 34,102,255 21,528,448 (389,241)
Net change in
unrealized gains on
securities and foreign
currency related
transactions.......... 26,781,815 63,612,291 265,253,469 50,477,009 5,100,620
-----------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 71,329,554 67,627,164 298,099,649 65,625,153 3,015,637
-----------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class A................ 0 0 (344,730) 0 0
Class Y................ 0 0 (2,733,186) 0 0
Net realized gains
Class A................ (16,084,131) (16,362,218) (652,480) (2,988,098) 0
Class B................ (4,545,584) 0 (2,054,332) 0 0
Class C................ (384,219) (23,300,909) (41,149) (15,033,436) 0
Class Y................ (3,420,978) (125) (3,449,493) (1,016,636) 0
-----------------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (24,434,912) (39,663,252) (9,275,370) (19,038,170) 0
-----------------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 160,664,688 289,520,215 3,509,054,746 543,766,956 308,336,791
Payment for shares
redeemed.............. (178,215,913) (159,195,434) (3,764,445,912) (632,970,382) (52,341,538)
Net asset value of
shares issued in
reinvestment of
distributions......... 22,235,576 38,814,981 8,257,762 18,495,507 0
Net asset value of
shares issued in
acquisition........... 0 0 36,518,956 0 0
-----------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 4,684,351 169,139,762 (210,614,448) (70,707,919) 255,995,253
-----------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............... 51,578,993 197,103,674 78,209,831 (24,120,936) 259,010,890
Net assets
Beginning of period.... 204,962,745 341,868,944 1,847,330,018 486,260,659 0
-----------------------------------------------------------------------------------------------------
End of period.......... $ 256,541,738 $ 538,972,618 $ 1,925,539,849 $ 462,139,723 $259,010,890
-----------------------------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income...... $ (15,427) 0 $ (111,928) 0 $ (5,236)
-----------------------------------------------------------------------------------------------------
</TABLE>
(a) For the period from December 31, 1998 (commencement of operations) to Sep-
tember 30, 1999.
(b) Effective October 18, 1999, shareholders of Class A, Class B and Class Y
shares of Mentor Capital Growth Portfolio and Mentor Growth Portfolio be-
came owners of that number of full and fractional shares of Class A, Class
C, and Class Y shares, respectively, of Evergreen Capital Growth Fund and
Evergreen Growth Fund. In addition, Class B shares of Mentor Capital Growth
Portfolio and Mentor Growth Portfolio were redesignated as Class C shares
of Evergreen Capital Growth Fund and Evergreen Growth Fund, respectively.
See Combined Notes to Financial Statements.
96
<PAGE>
EVERGREEN
Domestic Growth Funds
Statements of Changes in Net Assets
Year Ended September 30, 1999
<TABLE>
<CAPTION>
Tax
Small Company Stock Strategic Strategic
Omega Growth Selector Growth Equity
Fund Fund Fund Fund Fund
--------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Operations
Net investment income
(loss)................ $ (4,934,184) $ (6,294,998) $ 359,279 $ (3,745,527) $ (68,111)
Net realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions.. 32,232,168 73,715,469 55,919,458 144,232,060 (556,814)
Net change in
unrealized gains on
securities, futures
contracts and foreign
currency related
transactions.......... 78,923,602 216,564,571 80,892,386 107,095,909 2,456,449
--------------------------------------------------------------------------------------------------
Net increase in net
assets resulting from
operations............ 106,221,586 283,985,042 137,171,123 247,582,442 1,831,524
--------------------------------------------------------------------------------------------------
Distributions to
shareholders from
Net investment income
Class A................ 0 0 (5,558) 0 (5,136)
Class B................ 0 0 0 0 (7,564)
Class C................ 0 0 0 0 (1,809)
Class Y................ 0 0 (490,627) 0 (6,166)
Net realized gains
Class A................ (18,881,795) (129,434,483) (3,569,299) (97,518,215) 0
Class B................ (14,406,403) (42,194,482) (120,260) (19,003,185) 0
Class C................ (1,728,482) (829,079) 0 (92,547) 0
Class Y................ (112,388) (222,576) (90,604,377) 0 0
--------------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... (35,129,068) (172,680,620) (94,790,121) (116,613,947) (20,675)
--------------------------------------------------------------------------------------------------
Capital share
transactions
Proceeds from shares
sold.................. 547,549,257 427,997,897 209,754,401 148,502,035 18,078,274
Payment for shares
redeemed.............. (159,851,713) (652,876,201) (287,629,154) (251,438,959) (5,993,681)
Net asset value of
shares issued in
reinvestment of
distributions......... 32,430,705 142,159,901 94,489,967 102,857,319 18,071
--------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 420,128,249 (82,718,403) 16,615,214 (79,605) 12,102,664
--------------------------------------------------------------------------------------------------
Total increase in net
assets............... 491,220,767 28,586,019 58,996,216 130,888,890 13,913,513
Net assets
Beginning of period.... 284,611,203 793,895,818 441,315,494 836,766,397 3,639,667
--------------------------------------------------------------------------------------------------
End of period.......... $ 775,831,970 $ 822,481,837 $ 500,311,710 $ 967,655,287 $17,553,180
--------------------------------------------------------------------------------------------------
Undistributed
(overdistributed) net
investment income...... $ (8,206) $ (41,195) $ 94,561 $ (29,927) 0
--------------------------------------------------------------------------------------------------
</TABLE>
See Combined Notes to Financial Statements.
97
<PAGE>
Combined Notes to Financial Statements(Unaudited)
1. ORGANIZATION
The Evergreen Domestic Growth Funds consist of Evergreen Aggressive Growth Fund
("Aggressive Growth Fund"), Evergreen Capital Growth Fund ("Capital Growth
Fund") (formerly, Mentor Capital Growth Portfolio), Evergreen Fund ("Evergreen
Fund"), Evergreen Growth Fund ("Growth Fund") (formerly, Mentor Growth Portfo-
lio), Evergreen Masters Fund ("Masters Fund"), Evergreen Omega Fund ("Omega
Fund"), Evergreen Small Company Growth Fund ("Small Company Growth Fund"), Ev-
ergreen Stock Selector Fund ("Stock Selector Fund"), Evergreen Strategic Growth
Fund ("Strategic Growth Fund") and Evergreen Tax Strategic Equity Fund ("Tax
Strategic Equity Fund"), (collectively, the "Funds"). Each Fund is a diversi-
fied series of Evergreen Equity Trust (the "Trust"), a Delaware business trust
organized on September 18, 1997. The Trust is an open-end management investment
company registered under the Investment Company Act of 1940, as amended (the
"1940 Act"). Prior to October 18, 1999, the Capital Growth Fund and Growth
Fund, were series of Mentor Funds, a Massachusetts business trust.
The Funds offer Class A, Class B, Class C and Class Y shares. Class A shares
are sold with a maximum front-end sales charge of 4.75%. Class B and Class C
shares are sold without a front-end sales charge, but pay a higher ongoing dis-
tribution fee than Class A. Class B shares are sold subject to a contingent de-
ferred sales charge that is payable upon redemption and decreases depending on
how long the shares have been held. Class B shares purchased after January 1,
1997 will automatically convert to Class A shares after seven years. Class B
shares purchased prior to January 1, 1997 follow the conversion rights at the
time the shares were initially purchased. Class C shares are sold subject to a
2.00% contingent deferred sales charge payable on shares redeemed within one
year after the month of purchase and a 1.00% contingent deferred sales charge
if such shares are redeemed within two years after the month of purchase. Class
C shares purchased prior to February 1, 2000 follow the contingent deferred
sales charge schedule at the time the shares were initially purchased. Class Y
shares are sold at net asset value and are not subject to contingent deferred
sales charges or distribution fees. Class Y shares are sold only to investment
advisory clients of First Union Corporation ("First Union") and its affiliates,
certain institutional investors or Class Y shareholders of record of certain
other funds managed by First Union and its affiliates as of December 30, 1994.
Effective October 18, 1999, upon conversion of the respective Mentor Funds into
series of Evergreen Delaware business trusts, the Class A, Class B and Class Y
shareholders of the former Mentor Capital Growth Portfolio and former Mentor
Growth Portfolio became owners of that number of full and fractional shares of
Class A, Class C and Class Y shareholders of Capital Growth Fund and Growth
Fund, respectively. In addition, the Capital Growth Fund and Growth Fund added
a new class of shares designated as Class B. Prior to the conversion, Class A
shares of Capital Growth Fund and Growth Fund were sold with a maximum sales
charge of 5.75%.
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
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, in-
cluding restricted securities, are valued at fair value as determined in good
faith according to procedures approved by the Board of Trustees. Mutual fund
shares are valued at the net asset value of each
98
<PAGE>
Combined Notes to Financial Statements(Unaudited) (continued)
mutual 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.
Pursuant to an exemptive order issued by the Securities and Exchange Commis-
sion, Omega Fund, Small Company Growth Fund and Strategic Growth Fund, along
with certain other funds managed by Evergreen Investment Management Company
("EIMC"), a subsidiary of First Union National Bank ("FUNB"), may transfer
uninvested cash balances into a joint trading account. These balances are in-
vested 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 transaction is subsequently adjusted by
daily payments or receipts ("variation margin") 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. Forward Foreign Currency Exchange Contracts
The Funds may enter into forward foreign currency exchange contracts ("forward
contracts") to settle portfolio purchases and sales of securities denominated
in a foreign currency and to hedge certain foreign currency assets or liabili-
ties. Forward contracts are recorded at the forward rate and marked-to-market
daily. Realized gains and losses arising from such transactions are included in
net realized gain or loss on foreign currency related transactions. The Fund
bears the risk of an unfavorable change in the foreign currency exchange rate
underlying the forward contract and is subject to the credit risk that the
other party will not fulfill their obligations under the contract. Forward con-
tracts involve elements of market risk in excess of the amount reflected in the
Statements of Assets and Liabilities.
99
<PAGE>
Combined Notes to Financial Statements(Unaudited) (continued)
F. 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 advisors 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.
G. Security Transactions and Investment Income
Security 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.
H. 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, net tax-exempt income and net capital gains, if any, to their sharehold-
ers. The Funds also intend to avoid any excise tax liability by making the re-
quired distributions under the Code. Accordingly, no provision for federal
taxes is required. To the extent that realized capital gains can be offset by
capital loss carryforwards, it is each Fund's policy not to distribute such
gains.
I. Distributions
Distributions from net investment income and/or net realized capital gains, if
any, are declared and paid at least annually. Distributions to shareholders are
recorded at the close of business on the ex-dividend date.
Income and capital gains distributions to shareholders are determined in accor-
dance with income tax regulations, which may differ from generally accepted ac-
counting principles.
J. Class Allocations
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the rela-
tive net assets of each class. Currently, class specific expenses are limited
to expenses incurred under the Distribution Plans for each class.
K. Organization Expenses
Organization expenses for Aggressive 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 are redeemed by any holder during the five-year amortization peri-
od, redemption proceeds will be reduced by any unamortized organization ex-
penses 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 redemp-
tion.
3. INVESTMENT ADVISORY AGREEMENTS AND OTHER AFFILIATED TRANSACTIONS
First Union National Bank ("FUNB"), is the investment advisor to the Aggressive
Growth Fund and Masters Fund and is paid a management fee that is computed and
paid daily at an annual rate of 0.52% and 0.87%,
100
<PAGE>
Combined Notes to Financial Statements(Unaudited) (continued)
respectively, of each Fund's average daily net assets. Prior to January 3,
2000, the management fee was computed daily at an annual rate of 0.60% and
0.95% respectively of each Fund's average daily net assets.
Evergreen Asset Management Corp. ("EAMC"), an indirect wholly-owned subsidiary
of FUNB, MFS Institutional Advisors, Inc., OppenheimerFunds, Inc. and Putnam
Investment Management, Inc. are investment managers to the Masters Fund. Sub-
ject to the supervision of FUNB, each Manager manages a segment of the Fund's
portfolio in accordance with the Fund's investment objective and policies. The
Fund pays no direct fees to the investment managers for their services.
EAMC also serves as the investment advisor to the Evergreen Fund and the Tax
Strategic Equity Fund. For the Evergreen Fund the advisory fee is paid to EAMC
based on the Fund average daily net assets that is computed and paid daily in
accordance with the following schedule:
<TABLE>
<S> <C>
First $750 million......................................... 0.90%
Next $250 million.......................................... 0.80%
Over $1 billion............................................ 0.70%
</TABLE>
Prior to January 3, 2000, the management fee for the Evergreen Fund was com-
puted and paid daily based on the Fund's average daily net assets, in accor-
dance with the following schedule:
<TABLE>
<S> <C>
First $750 million......................................... 1.00%
Next $250 million.......................................... 0.90%
Over $1 billion............................................ 0.80%
</TABLE>
For the Tax Strategic Fund, EAMC is paid a management fee that is computed and
paid daily at an annual rate of 0.87% of the Fund's average daily net assets.
Prior to January 3, 2000, the management fee for the Tax Strategic Fund was
computed daily at an annual rate of 0.95% of the Fund's average daily net as-
sets.
During the six months ended March 31, 2000, the amount of investment advisory
fees waived by the investment advisor was $2,218 for the Tax Strategic Equity
Fund. The impact on the expense ratio represented as a percentage of the Fund's
average net assets was 0.01%.
Lieber & Company, an affiliate of First Union, is the investment sub-advisor to
Evergreen Fund, Masters Fund and Tax Strategic Equity Fund and also provides
brokerage services with respect to substantially all security transactions of
the Funds effected on the New York or American Stock Exchanges. For the six
months ended March 31, 2000, Evergreen Fund, Masters Fund and Tax Strategic Eq-
uity Fund incurred brokerage commissions of $279,769, $49,189 and $7,750, re-
spectively, with Lieber & Company. Lieber & Company is reimbursed by EAMC for
providing investment sub-advisory services at no additional expense to the
Funds.
EIMC is the investment advisor for Omega Fund, Small Company Growth Fund and
Strategic Growth Fund. In return for providing investment management services,
the Fund pays EIMC a management fee that is computed and paid daily. For Omega
Fund, the management fee is determined by applying percentage rates, starting
at 0.66% and declining to 0.41% per annum as net assets increase, to the aver-
age daily net assets of the Fund. For Small Company Growth and Strategic
Growth, the management fee is determined by applying percentage rates, starting
at 0.61% and declining to 0.26% per annum as net assets increase, to the aver-
age daily net assets of the Fund. Prior to January 3, 2000, the management fee
for Omega Fund was determined by applying percentage rates, starting at 0.75%
and declining to 0.50% per annum as net assets increased, to the average daily
net assets of the Fund. For Small Company Growth and Strategic Growth, the man-
agement fee was determined by applying percentage rates, starting at 0.70% and
declining to 0.35% per annum as net assets increased, to the average daily net
assets of each Fund.
Mentor Investment Advisors, LLC ("Mentor Advisors"), a subsidiary of First
Union, serves as the investment advisor to Capital Growth Fund and Growth Fund
and is paid a management fee that is computed and paid daily at an annual rate
of 0.80% and 0.70%, respectively, of each Fund's average daily net assets.
Meridian Investment Company ("Meridian"), a wholly-owned subsidiary of First
Union, is the investment advisor to Stock Selector Fund and is paid an advisory
fee that is computed and paid daily at an annual rate of
101
<PAGE>
Combined Notes to Financial Statements(Unaudited) (continued)
0.66% of the Fund's average daily net assets. Prior to January 3, 2000, the
management fee was computed daily at an annual rate of 0.74% of the Fund's av-
erage daily net assets.
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 March 15, 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 Trust-
ees receive no compensation directly from the Funds.
For its services, the Aggressive Growth Fund, Masters Fund, Stock Selector Fund
and Tax Strategic Equity Fund pay the administrator a fee at an annual rate of
0.10% of each Fund's average daily net assets. The sub-administrator was paid
by the administrator out of its fees until the sub-administration agreement
with BISYS was terminated on March 14, 2000. Prior to January 3, 2000, the ad-
ministrator and sub-administrator for the Aggressive Growth Fund, Masters Fund,
Stock Selector Fund and Tax Strategic Equity Fund were entitled to an annual
fee based on the combined average daily net assets of all the funds adminis-
tered by EIS for which First Union or its investment advisory subsidiaries are
also the investment advisors. The administration fee was calculated by applying
percentage rates, which started at 0.05% and declined to 0.01% per annum as net
assets increase, to the average daily net assets of each Fund. The sub-adminis-
tration 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 average daily
net assets of each Fund.
For its services, the Omega Fund and the Small Company Growth Fund also pay the
administrator a fee at the annual rate of 0.10% of each Fund's average daily
net assets. Prior to January 3, 2000, the administration fee was paid by the
investment advisor and was not a fund expense. However the Funds reimbursed
EIMC for providing certain administration and accounting expenses. The sub-ad-
ministration fee was paid by the investment advisor until the sub-administra-
tion agreement was terminated on March 14, 2000.
For its services, the Capital Growth Fund and the Growth Fund pay the adminis-
trator a fee at the annual rate of 0.15% of each Fund's average daily net as-
sets.
During the six months ended March 31, 2000, the Aggressive Growth Fund, Capital
Growth Fund, Growth Fund, Masters Fund, Strategic Growth Fund, Stock Selector
Fund and Tax Strategic Equity Fund paid or accrued to EIS the following amounts
for administrative and sub-administrative services:
<TABLE>
<CAPTION>
Administration Sub-administration
Fee Fee
---------------------------------
<S> <C> <C>
Aggressive Growth Fund........ $108,480 $ 7,379
Masters Fund.................. 85,426 6,368
Stock Selector Fund........... 134,339 10,733
Tax Strategic Equity Fund..... 6,909 497
</TABLE>
Evergreen Service Company ("ESC"), an indirectly, wholly-owned subsidiary of
FUNB, is the transfer and dividend disbursing agent for the Funds. Prior to
September 13, 1999, Boston Financial Data Services, Inc. served as the transfer
and dividend disbursing agent for Capital Growth Fund and Growth Fund.
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 each class of shares, except Class Y. Distribution plans permit a Fund
to compensate its principal underwriter for costs related to selling shares of
the Fund and for various other services. These costs, which consist primarily
of commissions and service fees to broker-dealers who sell shares of the Fund,
are paid by the Fund through "Distribution Plan expenses". Under the Distribu-
tion Plans, Class A incurs distribution fees equal to 0.25% of the average
daily net assets of the class, all of which is used to pay for shareholder
service fees. Class B and Class C incur distribution fees equal to 1.00% of the
average daily net assets of each class. Of this amount, 0.25% of the
102
<PAGE>
Combined Notes to Financial Statements(Unaudited) (continued)
distribution fees incurred is used to pay for shareholder service fees and
0.75% is used to pay for distribution-related costs. Distribution Plan expenses
are calculated and paid daily.
During the six months ended March 31, 2000, amounts paid or accrued to EDI pur-
suant to each Fund's Class A, Class B and Class C Distribution Plans were as
follows:
<TABLE>
<CAPTION>
Class A Class B Class C
--------------------------------
<S> <C> <C> <C>
Aggressive Growth Fund........ $ 279,036 $ 399,777 $ 36,923
Capital Growth Fund........... 287,231 7,067 1,077,992
Evergreen Fund................ 252,768 3,397,115 72,519
Growth Fund................... 116,768 3,254 1,779,056
Masters Fund.................. 231,049 493,399 28,101
Omega Fund.................... 669,702 3,146,866 307,456
Small Company Growth Fund..... 1,295,999 564,444 25,957
Stock Selector Fund........... 28,264 14,015 1,267
Strategic Growth Fund......... 1,327,944 519,237 17,603
Tax Strategic Equity Fund..... 9,085 53,615 15,537
</TABLE>
With respect to Class B and Class C shares, the principal underwriter may pay
distribution fees greater than the allowable annual amounts each Fund is per-
mitted to pay under the Distribution Plans.
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.
Prior to October 18, 1999, Mentor Distributors, LLC ("Mentor Distributors")
served as principal underwriter to the Capital Growth Fund and the Growth Fund
Fund. Mentor Distributors is a wholly-owned subsidiary of BISYS Fund Services,
Inc. The Capital Growth Fund and the Growth Fund had adopted a Distribution
Plan under Rule 12b-1 of the 1940 Act for its Class B shares. To compensate
Mentor Distributors for the services it provided and for the expenses it in-
curred, Capital Growth Fund and the Growth Fund Fund paid a distribution fee of
0.75%, which was accrued daily and paid monthly.
Prior to October 18, 1999, the Funds had also adopted a Shareholder Servicing
Plan (the "Service Plan") with Mentor Distributors with respect to Class A and
Class B shares. Under the Service Plan, financial institutions entered into
shareholder service agreements with Capital Growth Fund and Growth Fund to pro-
vide administrative support services to their customers who from time to time
might have been owners of record or beneficial owners of Class A or Class B
shares of one or more Funds. In return for providing these support services, a
financial institution might have received payments from one or more Funds at an
annual rate of 0.25% of the average daily net assets of the Class A or Class B
shares of Capital Growth Fund and Growth Fund beneficially owned by the finan-
cial institution's customers for whom it was a holder of record or with whom it
had a servicing relationship.
For the six months ended March 31, 2000, amounts paid or accrued to Mentor Dis-
tributors pursuant to each Fund's Class A and Class C Distribution and Service
Plans were as follows:
<TABLE>
<CAPTION>
Shareholder Shareholder
Servicing Fee Servicing Fee Distribution Fee
Class A Class C Class C
--------------------------------------------
<S> <C> <C> <C>
Capital Growth
Fund............. $31,997 $29,336 $ 88,006
Growth Fund....... 10,976 40,702 122,106
</TABLE>
5. ACQUISITION
Effective the close of business on July 30, 1999, Evergreen Fund acquired sub-
stantially all of the net assets and assumed certain liabilities of Evergreen
Micro Cap Fund, an open-end management investment company registered under the
1940 Act in an exchange of Class A, Class B, Class C and Class Y shares of Ev-
ergreen Fund. This acquisition was accomplished by a tax-free exchange for
1,418,500 shares of the Fund. The value of the acquired net assets were
$36,518,956 with unrealized appreciation of $9,170,886. The aggregate net as-
sets of the Evergreen Fund immediately after the acquisition were
$2,079,861,427.
103
<PAGE>
Combined Notes to Financial Statements(Unaudited) (continued)
6. CAPITAL SHARE TRANSACTIONS
The Funds have an unlimited number of shares of beneficial interest with $0.001
par value authorized. Shares of beneficial interest of the Funds are currently
divided into Class A, Class B, Class C and Class Y. Transactions in shares of
the Funds were as follows:
Aggressive Growth Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 2000 September 30, 1999
------------------------ -------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold.............. 1,676,093 $ 52,741,374 4,091,486 $ 100,313,056
Automatic conversion of
Class B shares to Class
A shares................ 113,412 3,538,222 11,191 258,550
Shares redeemed.......... (1,562,589) (48,704,208) (4,837,721) (117,577,148)
Shares issued in
reinvestment of
distributions........... 619,549 17,223,445 690,702 14,484,012
-------------------------------------------------------------------------------
Net increase (decrease).. 846,465 24,798,833 (44,342) (2,521,530)
-------------------------------------------------------------------------------
Class B
Shares sold.............. 835,381 26,630,258 1,041,861 25,104,998
Automatic conversion of
Class B shares to Class
A shares................ (117,877) (3,538,222) (10,834) (258,550)
Shares redeemed.......... (266,280) (7,913,899) (737,558) (17,491,988)
Shares issued in
reinvestment of
distributions........... 262,376 7,023,805 214,557 4,381,250
-------------------------------------------------------------------------------
Net increase............. 713,600 22,201,942 508,026 11,735,710
-------------------------------------------------------------------------------
Class C
Shares sold.............. 109,954 3,461,445 559,471 12,662,073
Shares redeemed.......... (22,933) (706,474) (514,120) (11,614,643)
Shares issued in
reinvestment of
distributions........... 21,277 568,101 18,309 373,139
-------------------------------------------------------------------------------
Net increase............. 108,298 3,323,072 63,660 1,420,569
-------------------------------------------------------------------------------
Class Y
Shares sold.............. 288,094 9,391,859 927,592 22,584,561
Shares redeemed.......... (311,459) (9,876,848) (1,287,577) (31,532,134)
Shares issued in
reinvestment of
distributions........... 122,588 3,461,888 141,310 2,997,175
-------------------------------------------------------------------------------
Net increase (decrease).. 99,223 2,976,899 (218,675) (5,950,398)
-------------------------------------------------------------------------------
Net increase............. $ 53,300,746 $ 4,684,351
-------------------------------------------------------------------------------
</TABLE>
Capital Growth Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 2000 September 30, 1999
------------------------- -------------------------
Shares Amount Shares Amount
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A (a)
Shares sold............. 996,640 $ 24,410,966 8,969,729 $ 218,527,291
Shares redeemed......... (4,210,061) (102,473,958) (4,384,818) (107,572,611)
Shares issued in
reinvestment of
distributions.......... 216,679 5,463,403 741,724 16,054,923
------------------------------------------------------------------------------
Net increase
(decrease)............. (2,996,742) (72,599,589) 5,326,635 127,009,603
------------------------------------------------------------------------------
Class B (b)
Shares sold............. 188,552 4,657,745 3,100,435 70,992,924
Shares redeemed......... (52,480) (1,333,322) (2,242,187) (51,622,823)
Shares issued in
reinvestment of
distributions.......... 734 18,477 1,106,815 22,759,933
------------------------------------------------------------------------------
Net increase............ 136,806 3,342,900 1,965,063 42,130,034
------------------------------------------------------------------------------
Class C (a)
Shares sold............. 4,797,896 101,162,889 0 0
Shares redeemed......... (6,924,936) (149,288,080) 0 0
Shares issued in
reinvestment of
distributions.......... 226,919 5,377,985 0 0
------------------------------------------------------------------------------
Net decrease............ (1,900,121) (42,747,206) 0 0
------------------------------------------------------------------------------
Class Y (a)
Shares sold............. 285 7,149 0 0
Shares issued in
reinvestment of
distributions.......... 1 20 5 125
------------------------------------------------------------------------------
Net increase............ 286 7,169 5 125
------------------------------------------------------------------------------
Net increase
(decrease)............. $(111,996,726) $ 169,139,762
------------------------------------------------------------------------------
</TABLE>
(a) Effective October 18, 1999, shareholders of Mentor Capital Growth Portfolio
Class A, Class B and Class Y shares became owners of that number of full
and fractional shares of Class A, Class C and Class Y, respectively, of Ev-
ergreen Capital Growth Fund. In addition, Class B shares of Mentor Capital
Growth Portfolio were redesignated as Class C shares of Evergreen Capital
Growth Fund.
(b) For the period from October 25, 1999 (commencement of class operations) to
March 31, 2000.
104
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
Evergreen Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 2000 September 30, 1999
-------------------------- ----------------------------
Shares Amount Shares Amount
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 23,226,503 $ 599,177,067 55,677,019 $ 1,355,992,224
Automatic conversion of
Class B shares to Class
A shares............... 598,410 16,147,019 21,872 535,683
Shares redeemed......... (24,424,370) (631,534,697) (57,057,535) (1,393,753,532)
Shares issued in
reinvestment of
distributions.......... 291,701 7,592,942 41,108 967,124
Shares issued in
acquisition of
Evergreen Micro Cap
Fund................... 0 0 110,596 2,832,746
-----------------------------------------------------------------------------------
Net decrease............ (307,756) (8,617,669) (1,206,940) (33,425,755)
-----------------------------------------------------------------------------------
Class B
Shares sold............. 1,392,372 35,360,365 6,058,040 143,376,051
Automatic conversion of
Class B shares to Class
A shares............... (611,600) (16,147,019) (22,179) (535,683)
Shares redeemed......... (4,182,883) (106,438,099) (9,071,055) (217,443,162)
Shares issued in
reinvestment of
distributions.......... 1,097,589 27,977,714 87,586 2,024,982
Shares issued in
acquisition of
Evergreen Micro Cap
Fund................... 0 0 133,296 3,355,417
-----------------------------------------------------------------------------------
Net decrease............ (2,304,522) (59,247,039) (2,814,312) (69,222,395)
-----------------------------------------------------------------------------------
Class C
Shares sold............. 82,792 2,137,211 157,835 3,791,613
Shares redeemed......... (134,037) (3,390,213) (232,531) (5,540,497)
Shares issued in
reinvestment of
distributions.......... 22,612 575,710 1,671 38,547
Shares issued in
acquisition of
Evergreen Micro Cap
Fund................... 0 0 48,087 1,208,311
-----------------------------------------------------------------------------------
Net decrease............ (28,633) (677,292) (24,938) (502,026)
-----------------------------------------------------------------------------------
Class Y
Shares sold............. 26,220,643 678,765,957 81,931,751 2,005,894,858
Shares redeemed......... (30,202,776) (789,003,316) (87,321,515) (2,147,708,721)
Shares issued in
reinvestment of
distributions.......... 1,603,515 42,172,431 220,439 5,227,109
Shares issued in
acquisition of
Evergreen Micro Cap
Fund................... 0 0 1,126,521 29,122,482
-----------------------------------------------------------------------------------
Net decrease............ (2,378,618) (68,064,928) (4,042,804) (107,464,272)
-----------------------------------------------------------------------------------
Net decrease............ $(136,606,928) $ (210,614,448)
-----------------------------------------------------------------------------------
</TABLE>
Growth Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 2000 September 30, 1999
------------------------- --------------------------
Shares Amount Shares Amount
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A (a)
Shares sold............. 2,717,028 $ 46,919,825 31,738,871 $ 498,194,431
Automatic conversion of
Class B shares to Class
A shares............... 35 708 0 0
Shares redeemed......... (4,020,842) (71,280,366) (31,503,018) (497,861,464)
Shares issued in
reinvestment of
distributions.......... 258,787 4,417,530 209,823 2,939,628
--------------------------------------------------------------------------------
Net increase
(decrease)............. (1,044,992) (19,942,303) 445,676 3,272,595
--------------------------------------------------------------------------------
Class B (b)
Shares sold............. 94,538 1,982,757 2,136,351 27,314,195
Automatic conversion of
Class B shares to Class
A shares............... (36) (708) 0 0
Shares redeemed......... (600) (11,991) (8,496,928) (122,872,448)
Shares issued in
reinvestment of
distributions.......... 236 3,857 1,070,622 14,539,245
--------------------------------------------------------------------------------
Net increase
(decrease)............. 94,138 1,973,915 (5,289,955) (81,019,008)
--------------------------------------------------------------------------------
Class C (a)
Shares sold............. 2,246,160 53,539,953 0 0
Shares redeemed......... (5,684,229) (115,267,969) 0 0
Shares issued in
reinvestment of
distributions.......... 1,038,087 17,003,895 0 0
--------------------------------------------------------------------------------
Net decrease............ (2,399,982) (44,724,121) 0 0
--------------------------------------------------------------------------------
Class Y (a)
Shares sold............. 1,596,791 32,214,290 1,189,938 18,258,330
Shares redeemed......... (320,906) (6,611,899) (788,128) (12,236,470)
Shares issued in
reinvestment of
distributions.......... 134,200 2,301,543 72,358 1,016,634
--------------------------------------------------------------------------------
Net increase............ 1,410,085 27,903,934 474,168 7,038,494
--------------------------------------------------------------------------------
Net decrease............ $ (34,788,575) $ (70,707,919)
--------------------------------------------------------------------------------
</TABLE>
(a) Effective October 18, 1999, shareholders of Mentor Growth Portfolio Class
A, Class B and Class Y shares became owners of that number of full and
fractional shares of Class A, Class C and Class Y, respectively, of Ever-
green Growth Fund. In addition, Class B shares of Mentor Growth Portfolio
were redesignated as Class C shares of Evergreen Growth Fund.
(b) For the period from October 18, 1999 (commencement of class operations) to
March 31, 2000.
105
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
Masters Fund
<TABLE>
<CAPTION>
Six Months Ended Period Ended
March 31, 2000 September 30, 1999 (a)
------------------------ ------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 574,545 $ 6,891,650 20,318,705 $202,859,751
Automatic conversion of
Class B shares to Class A
shares................... 59,835 748,493 0 0
Shares redeemed........... (2,327,667) (26,826,197) (3,625,448) (36,604,532)
-------------------------------------------------------------------------------
Net increase (decrease)... (1,693,287) (19,186,054) 16,693,257 166,255,219
-------------------------------------------------------------------------------
Class B
Shares sold............... 1,300,700 15,597,168 9,086,441 89,703,567
Automatic conversion of
Class B shares to Class A
shares................... (60,205) (748,493) 0 0
Shares redeemed........... (691,420) (8,001,605) (800,242) (8,069,355)
-------------------------------------------------------------------------------
Net increase.............. 549,075 6,847,070 8,286,199 81,634,212
-------------------------------------------------------------------------------
Class C
Shares sold............... 188,985 2,257,142 587,143 5,789,821
Shares redeemed........... (103,453) (1,122,348) (103,274) (1,036,155)
-------------------------------------------------------------------------------
Net increase.............. 85,532 1,134,794 483,869 4,753,666
-------------------------------------------------------------------------------
Class Y
Shares sold............... 78,735 943,804 991,129 9,983,652
Shares redeemed........... (108,026) (1,274,261) (658,523) (6,631,496)
-------------------------------------------------------------------------------
Net increase (decrease)... (29,291) (330,457) 332,606 3,352,156
-------------------------------------------------------------------------------
Net increase (decrease)... $(11,534,647) $255,995,253
-------------------------------------------------------------------------------
</TABLE>
(a) For the period from December 31, 1998 (commencement of operations) to Sep-
tember 30, 1999.
Omega Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 2000 September 30, 1999
------------------------ ------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............... 4,984,471 $174,676,731 9,289,908 $249,132,222
Automatic conversion of
Class B shares to Class A
shares................... 244,626 8,305,110 50,716 1,231,524
Shares redeemed........... (1,242,062) (41,681,994) (3,536,387) (88,747,695)
Shares issued in
reinvestment of
distributions............ 421,990 13,009,839 776,324 17,048,085
-------------------------------------------------------------------------------
Net increase.............. 4,409,025 154,309,686 6,580,561 178,664,136
-------------------------------------------------------------------------------
Class B
Shares sold............... 12,164,722 395,077,244 10,585,079 260,352,911
Automatic conversion of
Class B shares to Class A
shares................... (263,698) (8,305,110) (54,149) (1,231,524)
Shares redeemed........... (1,191,764) (37,906,996) (1,881,925) (44,716,715)
Shares issued in
reinvestment of
distributions............ 547,698 15,675,127 660,924 13,608,425
-------------------------------------------------------------------------------
Net increase.............. 11,256,958 364,540,265 9,309,929 228,013,097
-------------------------------------------------------------------------------
Class C
Shares sold............... 2,526,564 84,917,210 729,787 18,084,796
Shares redeemed........... (162,335) (4,939,277) (410,481) (10,036,714)
Shares issued in
reinvestment of
distributions............ 35,872 1,029,164 80,514 1,661,807
-------------------------------------------------------------------------------
Net increase.............. 2,400,101 81,007,097 399,820 9,709,889
-------------------------------------------------------------------------------
Class Y
Shares sold............... 247,898 8,508,438 788,319 19,979,328
Shares redeemed........... (38,121) (1,266,715) (649,835) (16,350,589)
Shares issued in
reinvestment of
distributions............ 5,911 183,261 5,104 112,388
-------------------------------------------------------------------------------
Net increase.............. 215,688 7,424,984 143,588 3,741,127
-------------------------------------------------------------------------------
Net increase.............. $607,282,032 $420,128,249
-------------------------------------------------------------------------------
</TABLE>
106
<PAGE>
Combined Notes to Financial Statements (Unaudited) (continued)
Small Company Growth Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 2000 September 30, 1999
-------------------------- --------------------------
Shares Amount Shares Amount
---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 17,823,161 $ 152,613,997 53,448,602 $ 312,196,051
Automatic conversion of
Class B shares to Class
A shares............... 8,872,073 87,031,563 16,309,922 90,694,600
Shares redeemed......... (27,898,895) (256,507,398) (82,905,179) (481,200,472)
Shares issued in
reinvestment of
distributions.......... 0 0 20,259,885 101,907,344
---------------------------------------------------------------------------------
Net increase
(decrease)............. (1,203,661) (16,861,838) 7,113,230 23,597,523
---------------------------------------------------------------------------------
Class B
Shares sold............. 3,173,591 29,411,884 13,062,017 73,444,369
Automatic conversion of
Class B shares to Class
A shares............... (9,009,333) (87,031,563) (16,453,668) (90,694,600)
Shares redeemed......... (3,074,641) (27,711,856) (22,882,532) (126,566,626)
Shares issued in
reinvestment of
distributions.......... 0 0 7,865,978 39,251,232
---------------------------------------------------------------------------------
Net decrease............ (8,910,383) (85,331,535) (18,408,205) (104,565,625)
---------------------------------------------------------------------------------
Class C
Shares sold............. 892,941 7,762,424 4,040,301 23,282,516
Shares redeemed......... (399,905) (2,783,521) (4,563,805) (26,279,445)
Shares issued in
reinvestment of
distributions.......... 0 0 155,750 778,749
---------------------------------------------------------------------------------
Net increase
(decrease)............. 493,036 4,978,903 (367,754) (2,218,180)
---------------------------------------------------------------------------------
Class Y
Shares sold............. 1,174,377 10,611,035 3,464,745 19,074,961
Shares redeemed......... (1,013,103) (9,354,299) (3,380,610) (18,829,658)
Shares issued in
reinvestment of
distributions.......... 0 0 44,074 222,576
---------------------------------------------------------------------------------
Net increase............ 161,274 1,256,736 128,209 467,879
---------------------------------------------------------------------------------
Net decrease............ $ (95,957,734) $ (82,718,403)
---------------------------------------------------------------------------------
</TABLE>
Stock Selector Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 2000 September 30, 1999
------------------------- --------------------------
Shares Amount Shares Amount
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 285,558 $ 5,670,771 663,818 $ 13,366,339
Automatic conversion of
Class B shares to Class
A shares............... 5,151 102,200 907 17,214
Shares redeemed......... (327,872) (6,558,855) (686,671) (13,666,848)
Shares issued in
reinvestment of
distributions.......... 119,796 2,363,583 197,997 3,461,192
--------------------------------------------------------------------------------
Net increase............ 82,633 1,577,699 176,051 3,177,897
--------------------------------------------------------------------------------
Class B
Shares sold............. 101,038 1,996,311 334,998 6,785,937
Automatic conversion of
Class B shares to Class
A shares............... (5,247) (102,200) (916) (17,214)
Shares redeemed......... (79,680) (1,555,488) (243,303) (4,897,446)
Shares issued in
reinvestment of
distributions.......... 13,908 269,676 6,740 116,802
--------------------------------------------------------------------------------
Net increase............ 30,019 608,299 97,519 1,988,079
--------------------------------------------------------------------------------
Class C (a)
Shares sold............. 16,174 320,746 3,912 82,570
Shares redeemed......... (579) (11,175) 0 0
Shares issued in
reinvestment of
distributions.......... 990 19,482 0 0
--------------------------------------------------------------------------------
Net increase............ 16,585 329,053 3,912 82,570
--------------------------------------------------------------------------------
Class Y
Shares sold............. 1,352,215 26,574,923 9,266,068 189,519,555
Shares redeemed......... (5,723,425) (114,229,684) (13,904,195) (269,064,860)
Shares issued in
reinvestment of
distributions.......... 2,606,961 51,595,815 5,193,569 90,911,973
--------------------------------------------------------------------------------
Net increase
(decrease)............. (1,764,249) (36,058,946) 555,442 11,366,668
--------------------------------------------------------------------------------
Net increase
(decrease)............. $ (33,543,895) $ 16,615,214
--------------------------------------------------------------------------------
</TABLE>
(a) For the period from June 30, 1999 (commencement of class operations) to
September 30, 1999.
107
<PAGE>
Combined Notes to Financial Statements(Unaudited) (continued)
Strategic Growth Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 2000 September 30, 1999
------------------------ --------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold............. 3,334,169 $ 41,906,358 8,719,042 $ 92,955,895
Automatic conversion of
Class B shares to Class
A shares............... 4,190,971 51,760,941 6,128,578 63,408,824
Shares redeemed......... (7,429,886) (91,066,890) (18,728,821) (200,386,524)
Shares issued in
reinvestment of
distributions.......... 11,055,062 123,042,836 8,976,424 85,277,296
-------------------------------------------------------------------------------
Net increase............ 11,150,316 125,643,245 5,095,223 41,255,491
-------------------------------------------------------------------------------
Class B
Shares sold............. 1,265,787 15,455,666 4,914,300 51,035,070
Automatic conversion of
Class B shares to Class
A shares............... (4,267,663) (51,760,941) (6,179,154) (63,408,824)
Shares redeemed......... (1,345,549) (15,957,662) (4,614,211) (48,490,126)
Shares issued in
reinvestment of
distributions.......... 1,411,469 15,441,466 1,854,514 17,488,143
-------------------------------------------------------------------------------
Net decrease............ (2,935,956) (36,821,471) (4,024,551) (43,375,737)
-------------------------------------------------------------------------------
Class C
Shares sold............. 174,797 2,165,659 410,152 4,274,159
Shares redeemed......... (37,596) (456,057) (241,893) (2,562,309)
Shares issued in
reinvestment of
distributions.......... 35,737 391,321 9,743 91,880
-------------------------------------------------------------------------------
Net increase............ 172,938 2,100,923 178,002 1,803,730
-------------------------------------------------------------------------------
Class Y (a)
Shares sold............. 127,302 1,519,625 21,799 236,911
Shares redeemed......... (16,262) (215,165) 0 0
Shares issued in
reinvestment of
distributions.......... 3,956 43,520 0 0
-------------------------------------------------------------------------------
Net increase............ 114,996 1,347,980 21,799 236,911
-------------------------------------------------------------------------------
Net increase
(decrease)............. $ 92,270,677 $ (79,605)
-------------------------------------------------------------------------------
</TABLE>
(a) For the period from June 30, 1999 (commencement of class operations) to
September 30, 1999.
Tax Strategic Equity Fund
<TABLE>
<CAPTION>
Six Months Ended Year Ended
March 31, 2000 September 30, 1999
--------------------- ---------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A
Shares sold..................... 222,439 $ 3,488,086 432,504 $ 5,821,410
Automatic conversion of Class B
shares to Class A shares....... 19,018 309,807 3,112 42,135
Shares redeemed................. (72,375) (1,135,464) (76,163) (1,045,908)
Shares issued in reinvestment of
distributions.................. 0 0 343 4,973
-------------------------------------------------------------------------------
Net increase.................... 169,082 2,662,429 359,796 4,822,610
-------------------------------------------------------------------------------
Class B (a)
Shares sold..................... 316,545 4,887,671 656,707 8,881,618
Automatic conversion of Class B
shares to Class A shares....... (19,163) (309,807) (3,115) (42,135)
Shares redeemed................. (58,968) (930,435) (88,644) (1,211,916)
Shares issued in reinvestment of
distributions.................. 0 0 497 7,141
-------------------------------------------------------------------------------
Net increase.................... 238,414 3,647,429 565,445 7,634,708
-------------------------------------------------------------------------------
Class C (b)
Shares sold..................... 124,325 1,961,720 170,259 2,319,807
Shares redeemed................. (22,285) (354,555) (15,428) (213,678)
Shares issued in reinvestment of
distributions.................. 0 0 85 1,225
-------------------------------------------------------------------------------
Net increase.................... 102,040 1,607,165 154,916 2,107,354
-------------------------------------------------------------------------------
Class Y
Shares sold..................... 3,207 51,010 79,526 1,055,439
Shares redeemed................. (102,806) (1,610,988) (246,229) (3,522,179)
Shares issued in reinvestment of
distributions.................. 0 0 326 4,732
-------------------------------------------------------------------------------
Net decrease.................... (99,599) (1,559,978) (166,377) (2,462,008)
-------------------------------------------------------------------------------
Net increase.................... $ 6,357,045 $12,102,664
-------------------------------------------------------------------------------
</TABLE>
(a) For the period from October 14, 1998 (commencement of class operations) to
September 30, 1999.
(b) For the period from November 4, 1998 (commencement of class operations) to
September 30, 1999.
108
<PAGE>
Combined Notes to Financial Statements(Unaudited) (continued)
7. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities (excluding
short-term securities) were as follows for the six months ended March 31, 2000:
<TABLE>
<CAPTION>
Cost of Purchases Proceeds from Sales
-------------------------------------
<S> <C> <C>
Aggressive Growth Fund.... $ 350,311,511 $ 346,067,531
Capital Growth Fund....... 199,611,693 294,393,035
Evergreen Fund............ 1,490,723,921 1,639,995,812
Growth Fund............... 411,891,816 454,313,219
Masters Fund.............. 165,412,942 173,974,257
Omega Fund................ 1,352,703,086 790,316,606
Small Company Growth
Fund..................... 1,035,672,774 1,184,383,211
Stock Selector Fund....... 351,835,209 447,997,329
Strategic Growth Fund..... 826,690,952 875,217,328
Tax Strategic Equity
Fund..................... 11,608,827 3,065,337
</TABLE>
During the six months ended March 31, 2000, Capital Growth Fund, Growth Fund,
Omega Fund, Small Company Growth Fund and Strategic Growth Fund loaned securi-
ties to certain brokers who paid the Funds a negotiated lenders' fee. These
fees are included in interest income. At March 31, 2000, the value of securi-
ties on loan and the value of collateral were as follows:
<TABLE>
<CAPTION>
Value of Securities
on Loan Value of Collateral
---------------------------------------
<S> <C> <C>
Capital Growth Fund..... $ 7,314,725 $ 7,370,000
Growth Fund............. 89,904,542 90,748,384
Omega Fund.............. 171,808,952 172,674,946
Small Company Growth
Fund................... 194,689,430 195,567,504
Strategic Growth Fund... 79,084,085 79,724,654
</TABLE>
During the six months ended March 31, 2000, the Capital Growth Fund, Growth
Fund, Omega Fund, Small Company Growth Fund and Strategic Growth Fund earned
$9,996, $142,112, $403,893, $579,605, and $305,321, respectively, in income
from securities lending.
At September 30, 1999, the Small Company Growth Fund for federal tax purposes,
had a capital loss carryforward of $29,500,000. Pursuant to the Internal Reve-
nue Code, such capital loss carryforwards will expire in 2006.
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. For the
fiscal year ended September 30, 1999, Tax Strategic Equity Fund incurred and
elected to defer $583,373 of such capital losses.
8. 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 Funds have also entered into
brokerage/service arrangements with specific brokers who paid a portion of the
Fund's expenses. The amount of expense reductions received by each Fund and the
impact of the total expense reductions on each Fund's annualized expense ratio
represented as a percentage of its average net assets were as follows:
<TABLE>
<CAPTION>
Expense Total
Offset Brokerage Expense % of Average
Arrangements Transactions Reductions Net Assets
-------------------------------------------------
<S> <C> <C> <C> <C>
Aggressive
Growth Fund.... $ 8,038 $ 4,787 $ 12,825 0.01%
Capital Growth
Fund........... 11,837 0 11,837 0.00%
Evergreen Fund.. 47,332 100,395 147,727 0.01%
Growth Fund..... 12,345 0 12,345 0.00%
Masters Fund.... 5,006 0 5,006 0.00%
Omega Fund...... 25,144 19,832 44,976 0.00%
Small Company
Growth Fund.... 33,818 51,965 85,783 0.00%
Stock Selector
Fund........... 9,681 0 9,681 0.00%
Strategic Growth
Fund........... 26,685 25,235 51,920 0.00%
Tax Strategic
Equity Fund.... 4,140 2,251 6,391 0.02%
</TABLE>
109
<PAGE>
Combined Notes to Financial Statements(Unaudited) (continued)
9. DEFERRED TRUSTEES' FEES
Each Independent Trustee of each Fund may defer any or all compensation related
to performance of their duties as Trustees. The Trustees' deferred balances are
allocated to deferral accounts, which are included in the accrued expenses for
the 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 accounts are reported in the Fund's Trustees' fees and
expenses. At the election of the Trustees, the deferral account will be paid
either in one lump sum or in quarterly installments for up to ten years.
10. FINANCING AGREEMENT
On July 27, 1999, certain Evergreen Funds and a group of banks (the "Lenders")
entered into credit agreement. On August 6, 1999, Capital Growth Fund and
Growth Fund became party to this agreement. Under this agreement, the Lenders
provide an unsecured revolving credit commitment in the aggregate amount of
$1.050 billion. The credit facility is allocated, under the terms of the fi-
nancing agreement, among the Lenders. The credit facility is accessed by the
Funds for temporary or emergency purposes to fund the redemption of their
shares or for general working capital purposes as permitted by each Fund's bor-
rowing restrictions. 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 includ-
ing January 31, 2000). A commitment fee of 0.10% per annum is incurred on the
average daily unused portion of the revolving credit commitment. The commitment
fee is allocated 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 pay-
ing agent is entitled to a fee of $20,000 per annum which is allocated to all
of the Funds.
During six months ended March 31, 2000, the Funds had no significant borrowings
under these agreements.
110
<PAGE>
Evergreen Funds
Money Market
Treasury Money Market Fund
Money Market Fund
Municipal Money Market Fund
Florida Municipal Money Market Fund
New Jersey Municipal Money Market Fund
Pennsylvania Municipal Money Market Fund
Tax Advantaged
Short Intermediate Municipal Bond Fund
High Grade Municipal Bond Fund
Municipal Bond Fund
Connecticut Municipal Bond Fund
Florida Municipal Bond Fund
Florida High Income Municipal Bond Fund
Georgia Municipal Bond Fund
Maryland Municipal Bond Fund
New Jersey Municipal Bond Fund
North Carolina Municipal Bond Fund
Pennsylvania Municipal Bond Fund
South Carolina Municipal Bond Fund
Virginia Municipal Bond Fund
Tax-Free High Income Fund
Income
Short-Duration Income Fund
Intermediate Term Bond Fund
U.S. Government Fund
Quality Income Fund
Diversified Bond Fund
Strategic Income Fund
High Yield Bond Fund
Balanced
Tax Strategic Foundation Fund
Foundation Fund
Balanced Fund
Growth & Income
Utility Fund
Income and Growth Fund
Value Fund
Blue Chip Fund
Growth and Income Fund
Small Cap Value Fund
Select Equity Index Fund
Domestic Growth
Tax Strategic Equity Fund
Capital Growth Fund
Stock Selector Fund
Evergreen Fund
Strategic Growth Fund
Masters Fund
Omega Fund
Small Company Growth Fund
Growth Fund
Aggressive Growth Fund
Select Special Equity Fund
Global International
Global Leaders Fund
Perpetual Global Fund
International Growth Fund
Perpetual International Fund
Global Opportunities Fund
Precious Metals Fund
Emerging Markets Growth Fund
Latin America Fund
Express Line
800.346.3858
Investor Services
800.343.2898
www.evergreen-funds.com
64458 543695 5/2000
[LOGO] PRSRT STD
U.S. POSTAGE
200 Berkeley Street PAID
Boston,MA 02116 HUDSON, MA
PERMIT NO. 19
