SUPPLEMENT TO THE PROSPECTUS
OF
EVERGREEN BALANCED FUNDS
I. Evergreen Tax Strategic Foundation Fund
Effective October 2, 2000, the section of the prospectus entitled "THE
FUNDS' PORTFOLIO MANAGERS" is supplemented to reflect the following change:
Jean C. Ledford, CFA, Richard S. Welsh, and Mathew M. Kiselak co-manage
the Fund. Ms. Ledford has co-managed the Fund with Richard Welsh since August
1999. Ms. Ledford became President and Chief Executive Officer of EAMC in August
1999. From February 1997 until she joined EAMC, Ms. Ledford was a senior
portfolio manager at American Century. From 1980 until she joined American
Century, Ms. Ledford was an investment director at the State of Wisconsin
Investment Board.
Mr. Welsh has co-managed the Fund with Jean Ledford since August 1999.
Mr. Welsh joined EAMC as Senior Vice President and portfolio manager in August
1999. From August 1994 until he joined EAMC, Mr. Welsh was a portfolio manager
and analyst at American Century.
Mr. Kiselak has co-managed the fixed income portion of the Fund since
October 2000. He joined FUNB in August 2000 as a senior portfolio manager and
Vice President. From August 1992 until he joined FUNB, Mr. Kiselak was a
portfolio manager with Bank of America Capital Management. He has been
affiliated with EAMC since October 2000.
October 2, 2000
II. Evergreen Tax Strategic Foundation Fund
Effective January 1, 2001, Evergreen Balanced Funds prospectus is
revised and supplemented as follows:
The tables under the section entitled "EXPENSES" for the Evergreen Tax
Strategic Foundation Fund have been restated to reflect a change in the advisory
fees. Management Fees, Other Expenses, Total Fund Operating Expenses and Example
of Fund Expenses will now be as follows:
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)+
Total
Management Other Fund
Fees 12b-1 Fees Expenses Operating
Expenses
Class A 0.74% 0.25% 0.27% 1.26%
Class B 0.74% 1.00% 0.27% 2.01%
Class C 0.74% 1.00% 0.27% 2.01%
Class Y 0.74% 0.00% 0.26% 1.00%
+ Restated for the fiscal year ended 3/31/2000 to reflect current fees.
The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual
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funds and is for illustration only. The example assumes a 5% average annual
return and reinvestment of all dividends and distributions. Your actual costs
may be higher or lower.
Example of Fund Expenses
Assuming Redemption Assuming No
At End of Period Redemption
------------------------------- -------------------
After: Class A Class B Class C Class Y Class B Class C
1 year $ 597 $ 704 $ 404 $ 102 $ 204 $ 204
3 years $ 856 $ 930 $ 630 $ 318 $ 630 $ 630
5 years $1,134 $1,283 $1,083 $ 552 $1,083 $1,083
10 years $1,925 $2,054 $2,338 $1,225 $2,054 $2,338
III. Evergreen Foundation Fund
Effective immediately, page 7 of the prospectus in the section under
"PERFORMANCE" entitled "Year-by-Year Total Return for Class Y Shares (%)" is
revised as follows:
[Bar chart will appear here]
1991 1992 1993 1994 1995
36.36 19.99 15.71 -1.10 29.70
1996 1997 1998 1999
11.50 25.56 12.21 13.69
January 1, 2001 556805 1/01
