SUPPLEMENT TO THE PROSPECTUS
OF
EVERGREEN PREMIER 20 FUND (the "Fund")
--------------------------------------------------------------------------------
SPECIAL OFFER
--------------------------------------------------------------------------------
Beginning February 1, 2001, the Fund's shares will be offered to the
general public. For the period from February 1, 2001 through March 2, 2001, or
until the total assets of Class A shares of the Fund reach $300 million,
whichever occurs sooner (the "Offering Period"). Evergreen Distributor, Inc.,
the principal underwriter of the Fund, will offer Class A shares at net asset
value. You may pay a deferred sales charge if you redeem your shares within the
first three years. The amount of the maximum deferred sales charge depends on
the length of time the shares are held, as shown below:
Maximum
Time Held Deferred Sales Charge
----------------------------------------------------- -----------------------
----------------------------------------------------- -----------------------
Month of Purchase + First 12 Month Period 2.00%
---------------------------------------------------- -----------------------
Month of Purchase + Second 12 Month Period 2.00%
----------------------------------------------------- -----------------------
Month of Purchase + Third 12 Month Period 1.00%
----------------------------------------------------- ----------------------
Thereafter 0.00%
----------------------------------------------------- -----------------------
Dealer Allowance 3.00%
---------------------------------------------------- -----------------------
-----------------------------------------------------------------------------
This Special Offer does not apply to purchases of shares totaling
$1,000,000 or more. Such purchases are offered with no sales charge, are subject
to a 1.00% deferred sales charge if shares are redeemed within 13 months of
purchase, and are offered a dealer commission of 1.00% to 0.25%.
If a deferred sales charge is imposed, the Fund deducts the deferred
sales charge from the redemption proceeds you would otherwise receive. The
deferred sales charge is a percentage of the lesser of (i) the net asset value
of the shares at the time of redemption or (ii) the shareholder's original net
cost for such shares. Upon request for redemption, to keep the deferred sales
charge which a shareholder must pay as low as possible, the Fund will first seek
to redeem shares not subject to the deferred sale charge and/or shares held the
longest, in that order.
In addition, shares purchased through this special offer may not be
exchanged for six months following the month of the initial purchase date.
February 1, 2001 556785 2/01
<PAGE>
EVERGREEN DOMESTIC GROWTH FUNDS
Evergreen Premier 20 Fund
Class A
Class B
Class C
Class Y
Prospectus, November 1, 2000, as amended February 1, 2001
[LOGO OF EVERGREEN FUNDS]
The Securities and Exchange Commission has not determined that the
information in this prospectus is accurate or complete, nor has it
approved or disapproved these securities. Anyone who tells you otherwise
is committing a crime.
<PAGE>
TABLE OF CONTENTS
FUND RISK/RETURN SUMMARY:
<TABLE>
<S> <C>
Overview of Fund Risks...................................................... 2
Evergreen Premier 20 Fund................................................... 4
GENERAL INFORMATION:
The Fund's Investment Advisor............................................... 6
The Fund's Portfolio Managers............................................... 6
Calculating the Share Price................................................. 6
How to Choose an Evergreen Fund............................................. 6
How to Choose the Share Class That Best Suits You........................... 7
How to Buy Shares........................................................... 9
How to Redeem Shares........................................................ 10
Other Services.............................................................. 11
The Tax Consequences of Investing in the Fund............................... 11
Fees and Expenses of the Fund............................................... 12
Other Fund Practices........................................................ 13
</TABLE>
In general, the Fund offered in this prospectus seeks to provide investors with
long term capital growth. The Fund tends to have more growth potential, risk
and volatility than less aggressive funds.
Fund Summaries Key
Each Fund's summary is organized around the following basic topics and
questions:
INVESTMENT GOAL
What is the Fund's financial
objective? You can find
clarification on how the Fund
seeks to achieve its objective
by looking at the Fund's
strategy and investment
policies. The Fund's Board of
Trustees can change the
investment objective without a
shareholder vote.
INVESTMENT STRATEGY
How does the Fund go about
trying to meet its goals? What
types of investments does it
contain? What style of investing
and investment philosophy does
it follow? Does it have limits
on the amount invested in any
particular type of security?
RISK FACTORS
What are the specific risks
for an investor in the Fund?
PERFORMANCE
How well has the Fund
performed in the past year? The
past five years? The past ten
years?
EXPENSES
How much does it cost to
invest in the Fund? What is the
difference between sales charges
and expenses?
<PAGE>
OVERVIEW OF FUND RISKS
Premier 20
Fund
typically relies on a combination of the following strategies:
. investing primarily in common stocks;
. investing in companies expected to provide capital growth; and
. selling a portfolio investment: i) when the issuers' investment
fundamentals begin to deteriorate; ii) when the investment reaches or
exceeds its estimated fair value; iii) to take advantage of more attractive
investment opportunities; iv) when the investment no longer appears to meet
the Fund's investment objective; v) when the Fund must meet redemptions; or
vi) for other investment reasons which the portfolio manager deems
necessary.
may be appropriate for investors who:
. seek an investment expected to grow over time; and
. can tolerate substantial volatility in the value of their investment.
Following this overview, you will find information on the Fund's specific
investment strategies and risks.
................................................................................
Risk Factors For All Mutual Funds
Please remember that an investment in
a mutual fund is:
. not guaranteed to achieve their
investment goal
. not a deposit with a bank
. not insured, endorsed or guaranteed
by the FDIC or any government agency
. subject to investment risks,
including possible loss of your
original investment
Like most investments, your investment
in the Fund could fluctuate
significantly in value over time and
could result in a loss of money.
Following are some of the most important factors that may affect the value of
your investment. Other factors may be described in the discussion following
this overview:
Stock Market Risk
Your investment in the Fund will be affected by general economic conditions
such as prevailing economic growth, inflation and interest rates. When economic
growth slows, or interest or inflation rates increase, equity securities tend
to decline in value. Such events could also cause companies to decrease the
dividends they pay. If these events were to occur, the value of and dividend
yield and total return earned on your investment would likely decline. Even if
general economic conditions do not change, the value of and dividend yield and
total return earned on your investment would decline if the particular
industries, companies or sectors the Fund invests in do not perform well.
Market Capitalization Risk
Stocks fall into three broad market capitalization categories--large, medium
and small. Investing primarily in one category carries the risk that due to
current market conditions that category may be out of favor with investors. If
valuations of large capitalization companies appear to be greatly out of
proportion to the valuations of small or medium capitalization companies,
investors may migrate to the stocks of small and mid-sized companies causing a
Fund that invests in these companies to increase in value more rapidly than a
Fund that invests in larger, fully-valued companies. Investing in medium and
small capitalization companies may be subject to special risks associated with
narrower product lines, more limited financial resources, smaller management
groups, and a more limited trading market for their stocks as compared with
larger companies. As a result, stocks of small and medium capitalization
companies may decline significantly in market downturns.
Investment Style Risk
Securities with different characteristics tend to shift in and out of favor
depending upon market and economic conditions as well as investor sentiment. A
Fund may outperform or underperform other funds that employ a different style.
A Fund may also employ a combination of styles that impact its risk
characteristics. Examples of different styles include growth and value
investing. Growth stocks may be more volatile than other stocks because they
are more sensitive to investor perceptions of the issuing company's growth of
earnings potential. Growth oriented funds will typically underperform when
value investing is in favor. Value stocks are those which are undervalued in
comparison to their peers due to adverse business developments or other
factors. Value oriented funds will typically underperform when growth investing
is in favor.
DOMESTIC GROWTH FUNDS
2
<PAGE>
OVERVIEW OF FUND RIKS
Foreign Investment Risk
The Fund's investment in non-U.S. securities could expose it to certain unique
risks of foreign investing. For example, political turmoil and economic
instability in the countries in which the Fund invests could adversely affect
the value of your investment. In addition, if the value of any foreign currency
in which the Fund's investments are denominated declines relative to the U.S.
dollar, the value of and total return earned on your investment in the Fund may
decline as well. Certain foreign countries have less developed and less
regulated securities markets and accounting systems than the U.S. This may make
it harder to get accurate information about a security or company, and increase
the likelihood that an investment will not perform as well as expected.
Concentration Risk
An investment in a Fund that concentrates its investments in a single sector or
industry entails greater risk than an investment in a Fund that invests its
assets in numerous sectors or industries. The Fund may be vulnerable to any
development in its concentration sector or industry that may weaken the sector
or industry. As a result, the Fund's shares may fluctuate more widely in value
than those of a Fund investing in a number of different sectors or industries.
Non-Diversification Risk
An investment in a Fund that is non-diversified entails greater risk than an
investment in a diversified fund. When a Fund is non-diversified, it may invest
up to 25% of its assets in a single issuer and up to 50% of its assets may
consist of securities of only two issuers. A higher percentage of investments
among fewer issuers may result in greater fluctuation in the total market value
of the Fund's portfolio.
Initial Public Offering Risk
Stocks purchased in IPOs have a tendency to fluctuate in value significantly
shortly after the IPO relative to the price at which they were purchased. These
fluctuations could impact the net asset value and return earned on the Fund's
shares.
DOMESTIC GROWTH FUNDS
3
<PAGE>
EVERGREEN
Premier 20 Fund
FUND FACTS:
Goal:
. Long-Term Capital Growth
Principal Investment:
. Common Stocks Across All Market Caps
Classes of Shares Offered in this Prospectus:
. Class A
. Class B
. Class C
. Class Y
Investment Advisor:
. Evergreen Investment Management Company
Portfolio Managers:
. Donald Bisson , CFA (Lead Manager)
. Patricia Bannan, CFA
. Liu-er Chen, CFA
. Maureen E. Cullinane, CFA
Dividend Payment Schedule:
. Annually
................................................................................
INVESTMENT GOAL
The Fund seeks long-term capital growth.
INVESTMENT STRATEGY
The following supplements the investment strategies discussed in the "Overview
of Fund Risks" on page 2.
The Fund invests primarily in the common stock of companies across all market
capitalizations ranging from emerging growth companies to larger more well-
established companies. The Fund will invest at least 65% of its assets in the
20 largest holdings. The Fund's portfolio management committee will utilize an
active, growth-oriented style of investment . They seek to identify what they
believe to be the 20 to 40 companies with the highest earnings and revenue
growth prospects. The Fund may purchase stocks within any industry or sector.
At any given time the Fund may have greater than 25% of its total net assets
invested in a single sector, such as technology, media, telecommunications or
health care. A "sector" is a large subsection of the market which may be
comprised of several industries with related lines of business. The Fund may
purchase stocks in initial public offerings (IPOs), as well as invest in
convertible securities and private placements. The Fund may also invest up to
35% of its assets in foreign securities.
The Fund may temporarily invest up to 100% of its assets in high quality money
market instruments in response to adverse economic, political or market
conditions. This strategy is inconsistent with the Fund's principal investment
strategy and investment goal, and if employed could result in a lower return
and loss of market opportunity.
RISK FACTORS
Your investment in the Fund is subject to the risks discussed in the "Overview
of Fund Risks" on page 2 under the headings:
.Stock Market Risk
.Market Capitalization Risk
.Investment Style Risk
.Foreign Investment Risk
.Concentration Risk
.Non-Diversification Risk
.Initial Public Offering Risk
In addition, since the Fund may concentrate in the technology, media,
telecommunications and health care sectors, the Fund is subject to the risks
associated with those sectors. This makes the Fund more vulnerable to price
changes of securities in these sectors and factors that affect these sectors
than a mutual fund that does not concentrate in a particular group of sectors.
For example, technology products are dependent on innovation in their industry
and are subject to the risk that new products will not meet expectations or
even reach the market place or lack the ability to evolve with rapid
innovation. The media sector is an aggressively changing environment subject to
corporate mergers and increasing competitiveness brought on by the advancement
of the internet. Telecommunications, similar to technology, is highly dependent
on innovation and expansion of existing technologies, such as internet
communications and the ability to access the internet through cellular phones,
as well as intense pricing competition and industry consolidation. The health
care sector is strongly affected by worldwide scientific or technological
developments, the ability to receive patents, and changes in government
regulation.
In addition, since the Fund may invest in securities that are purchased in
private placements it is subject to certain risks. While such private
placements may offer attractive opportunities for investment not otherwise
available on the open market, the securities are often "restricted" securities,
i.e., securities subject to restrictions on resale under federal securities
laws. The absence of a trading market can make it difficult to ascertain a
market value for illiquid investments, and it may be difficult or impossible
for the Fund to sell them promptly at an acceptable price.
For further information regarding the Fund's investment strategy and risk
factors see "Other Fund Practices" as well as the Statement of Additional
Information.
DOMESTIC GROWTH FUNDS
4
<PAGE>
EVERGREEN
PERFORMANCE
Since the Fund does not have annual returns for a full calendar year as of the
date of this prospectus, no performance information is provided.
EXPENSES
This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.
Shareholder Fees (fees paid directly from your investment)
<TABLE>
<CAPTION>
Shareholder Transaction
Expenses Class A Class B Class C Class Y
<S> <C> <C> <C> <C>
Maximum sales 4.75% None None None
charge imposed
on purchases (as
a % of offering
price)
Maximum deferred None* 5.00% 2.00% None
sales charge (as
a % of either
the redemption
amount or
initial
investment
whichever is
lower)
</TABLE>
* Investments of $1 million or more are not subject to a front-end sales
charge, but may be subject to a contingent deferred sales charge of 1.00%
upon redemption within one year after the month of purchase.
Annual Fund Operating Expenses (expenses that are deducted from Fund assets)+
<TABLE>
<CAPTION>
Total Fund
Management 12b-1 Other Operating
Fees Fees Expenses Expenses
<S> <C> <C> <C> <C>
Class A 0.75% 0.25% 0.51% 1.51%
Class B 0.75% 1.00% 0.51% 2.26%
Class C 0.75% 1.00% 0.51% 2.26%
Class Y 0.75% 0.00% 0.51% 1.26%
</TABLE>
+Estimated for the fiscal year ending 9/30/2001.
The table below shows the total expenses you would pay on a $10,000 investment
over one- and three-year periods. The example is intended to help you compare
the cost of investing in this Fund versus other mutual 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
<TABLE>
<CAPTION>
Assuming Redemption at Assuming
End of Period No Redemption
---------------------------------------------------- ------------------------
After: Class A Class B Class C Class Y Class B Class C
<S> <C> <C> <C> <C> <C> <C>
1 year $621 $729 $429 $128 $229 $229
3 years $930 $1,006 $706 $400 $706 $706
</TABLE>
DOMESTIC GROWTH FUNDS
5
<PAGE>
EVERGREEN
THE FUND'S INVESTMENT ADVISOR
The investment advisor manages the Fund's investments and supervises its daily
business affairs. All investment advisors for the Evergreen Funds are
subsidiaries of First Union Corporation, the sixth largest bank holding company
in the United States, with over $248.8 billion in consolidated assets as of
9/30/2000. First Union Corporation is located at 301 South College Street,
Charlotte, North Carolina 28288-0013.
Evergreen Investment Management Company (EIMC)
is the investment advisor to the Fund. EIMC has been managing mutual funds and
private accounts since 1932 and currently manages over $12.9 billion in assets
for 29 of the Evergreen Funds. EIMC is located at 200 Berkeley Street, Boston,
Massachusetts 02116-5034.
The Fund will pay EIMC an annual contractual advisory fee of 0.75% based on the
Fund's average daily net assets.
THE FUND'S PORTFOLIO MANAGERS
Donald Bisson, Patrician Bannan, Liu-Er Chen and Maureen E. Cullinane co-manage
the Fund. Donald Bisson is the lead portfolio manager.
Donald Bisson, CFA, joined EIMC as a Vice President and portfolio manager in
October 1996. From September 1993 until he joined EIMC, Mr. Bisson was an
assistant portfolio manager and research analyst with Phoenix Duff & Phelps.
Patricia Bannan, CFA, is a Managing Director and has been a senior portfolio
manager at EIMC since November 1999. Ms. Bannan was a Senior Vice President of
EIMC from November 1999 until October 2000. From August 1998 until joining
EIMC, Ms. Bannan was the Director of North America Equities at Commercial Union
Investment Management Corporation. She was managing director and portfolio
manager of Prudential Investment from January 1996 to May 1998.
Liu-Er Chen, CFA, has been a Vice President and portfolio manager since joining
EIMC in November 1995.
Maureen E. Cullinane, CFA, is a Managing Director and has been a senior
portfolio manager at EIMC since May 1995. Ms. Cullinane was a Senior Vice
President of EIMC from May 1995 until October 2000.
CALCULATING THE SHARE PRICE
The value of one share of the Fund, also known as the net asset value, or NAV,
is calculated on each day the New York Stock Exchange is open at 4 p.m. Eastern
time or as of the time the Exchange closes, if earlier. The Fund calculates its
share price for each share by adding up its total assets, subtracting all
liabilities, then dividing the result by the total number of shares
outstanding. Each class of shares is calculated separately. Each security held
by the Fund is valued using the most recent market data for that security. If
no market data is available for a given security, the Fund will price that
security at fair value according to policies established by the Fund's Board of
Trustees. Short-term securities with maturities of 60 days or less will be
valued on the basis of amortized cost.
The price per share you pay for a Fund purchase or the amount you receive for a
Fund redemption is based on the next price calculated after the order is
received and all required information is provided. The value of your account at
any given time is the latest share price multiplied by the number of shares you
own. Your account balance may change daily because the share price may change
daily.
The Fund may invest in foreign securities that are primarily listed on foreign
exchanges that trade on weekends or other days when the Fund does not price its
shares. As a result, the NAV of the Fund may change on days when investors will
not be able to purchase or redeem the Fund's shares.
HOW TO CHOOSE AN EVERGREEN FUND
When choosing an Evergreen Fund, you should:
. Most importantly, read the prospectus to see if the Fund is suitable for you.
. Consider talking to an investment professional. He or she is qualified to
give you investment advice based on your investment goals and financial
situation and will be able to answer questions you may have after reading the
Fund's prospectus. He or she can also assist you through all phases of
opening your account.
. Request any additional information you want about the Fund, such as the
Statement of Additional Information (SAI), by calling 1-800-343-2898.
DOMESTIC GROWTH FUNDS
6
<PAGE>
EVERGREEN
HOW TO CHOOSE THE SHARE CLASS THAT BEST SUITS YOU
After choosing a Fund, you select a share class. The Fund offers four different
share classes: Class A, Class B, Class C and Class Y. Each class except Class Y
has its own sales charge. Pay particularly close attention to this fee
structure so you know how much you will be paying before you invest.
Class A
If you select Class A shares, you may pay a front-end sales charge of up to
4.75%, but you do not pay a deferred sales charge. In addition, Class A shares
are subject to 12b-1 fees. The front-end sales charge is deducted from your
investment before it is invested. The actual charge depends on the amount
invested, as shown below:
<TABLE>
<CAPTION>
As a % of As a % Dealer
NAV excluding of your commission
Your investment sales charges investment as a % of NAV
<S> <C> <C> <C>
Up to $49,999 4.75% 4.99% 4.25%
$50,000-$99,999 4.50% 4.71% 4.25%
$100,000-
$249,999 3.75% 3.90% 3.25%
$250,000-
$499,999 2.50% 2.56% 2.00%
$500,000-
$999,999 2.00% 2.04% 1.75%
$1,000,000 and
over 0.00% 0.00% 1.00 to 0.25%
</TABLE>
Although no front-end sales charge applies to purchases of $1 million and over,
you will pay a 1.00% deferred sales charge if you redeem any such shares within
one year after the month of purchase.
Three ways you can reduce your Class A sales charges:
1. Rights of Accumulation. You may add the value of all of your existing
Evergreen Fund investments in all share classes, excluding Evergreen money
market funds, to determine the initial sales charge to be applied to your
current Class A purchase.
2. Letter of Intent. You may reduce the sales charge on a current purchase if
you agree to invest at least $50,000 in Class A shares of an Evergreen Fund
over a 13-month period. You will pay the same sales charge as if you had
invested the full amount all at one time. The Fund will hold a certain
portion of your investment in escrow until your commitment is met.
3. Combined Purchases. You may reduce your initial sales charge if you
purchase Class A shares in multiple Evergreen Funds, excluding Evergreen
money market funds, at the same time. The combined dollar amount invested
will determine the initial sales charge applied to all of your current
purchases. For example, if you invested $75,000 in each of two different
Evergreen Funds, you would pay a sales charge based on a $150,000 purchase
(i.e., 3.75% of the offering price, rather than 4.75%).
Contact your investment professional or the Evergreen Service Company at 1-800-
343-2898 if you think you may qualify for any of these services. For more
information on these services see "Sales Charge Waivers and Reductions" in the
SAI.
Each Fund may also sell Class A shares at net asset value without a front-end
or deferred sales charge to the Directors, Trustees, officers and employees of
the Fund and the advisory affiliates of First Union Corporation, and to members
of their immediate families, to registered representatives of firms with dealer
agreements with Evergreen Distributor, Inc. (EDI), and to a bank or trust
company acting as trustee for a single account.
Class B
If you select Class B shares, you do not pay a front-end sales charge, so the
entire amount of your purchase is invested in the Fund. However, your shares
are subject to an expense, known as 12b-1 fees. In addition, you may pay a
deferred sales charge if you redeem your shares within six years after the
month of purchase.
The amount of the deferred sales charge depends on the length of time the
shares were held, as shown below:
<TABLE>
<CAPTION>
Maximum Deferred
Time Held Sales Charge
<S> <C>
Month of Purchase + First 12 Month Period 5.00%
Month of Purchase + Second 12 Month Period 4.00%
Month of Purchase + Third 12 Month Period 3.00%
Month of Purchase + Fourth 12 Month Period 3.00%
Month of Purchase + Fifth 12 Month Period 2.00%
Month of Purchase + Sixth 12 Month Period 1.00%
Thereafter 0.00%
After 7 years Converts to Class A
Dealer Allowance 4.00%
</TABLE>
The maximum deferred sales charge and dealer allowance may be reduced for
certain investors. For further information on how the deferred sales charge is
calculated at the time of redemption see "Calculating the Deferred Sales
Charge" below.
Class C
Like Class B shares you do not pay a front-end sales charge on Class C shares.
However, you may pay a deferred sales charge if you redeem your shares within
two years after the month of purchase. Also, these shares do not convert to
Class A shares and so the higher 12b-1 fees paid by the Class C shares continue
for the life of the account.
DOMESTIC GROWTH FUNDS
7
<PAGE>
EVERGREEN
The amount of the maximum deferred sales charge depends on the length of time
the shares are held, as shown below:
<TABLE>
<CAPTION>
Maximum
Deferred
Time Held Sales Charge
<S> <C>
Month of Purchase + First 12 Month Period 2.00%
Month of Purchase + Second 12 Month Period 1.00%
Thereafter 0.00%
Dealer Allowance 2.00%
</TABLE>
The maximum deferred sales charge and dealer allowance may be reduced for
certain investors. For further information on how the deferred sales charge is
calculated at the time of redemption see "Calculating the Deferred Sales
Charge" below.
Waiver of Class B or Class C Deferred Sales Charges
You will not be assessed a deferred sales charge for Class B or Class C shares
if you redeem shares in the following situations:
. When the shares were purchased through reinvestment of dividends/capital
gains
. Death or disability
. Lump-sum distribution from a 401(k) plan or other benefit plan qualified
under ERISA
. Systematic withdrawals of up to 1.00% of the account balance per month
. Loan proceeds and financial hardship distributions from a retirement plan
. Returns of excess contributions or excess deferral amounts made to a
retirement plan participant
Class Y
The Fund offers Class Y shares at net asset value without a front-end sales
charge, deferred sales charge or 12b-1 fees. Class Y shares are only offered to
persons who owned Class Y shares of an Evergreen Fund on or before 12/31/1994;
certain institutional investors; and investment advisory clients of an
investment advisor of an Evergreen Fund (or the investment advisor's
affiliates).
Calculating the Deferred Sales Charge
If imposed, the Fund deducts the deferred sales charge from the redemption
proceeds you would otherwise receive. The deferred sales charge is a percentage
of the lesser of (i) the net asset value of the shares at the time of
redemption or (ii) the shareholder's original net cost for such shares. Upon
request for redemption, to keep the deferred sales charge a shareholder must
pay as low as possible, the Fund will first seek to redeem shares not subject
to the deferred sales charge and/or shares held the longest, in that order. The
deferred sales charge on any redemption is, to the extent permitted by the
National Association of Securities Dealers, Inc. paid to EDI or its
predecessor.
DOMESTIC GROWTH FUNDS
8
<PAGE>
EVERGREEN
HOW TO BUY SHARES
Evergreen Funds' low investment minimums make investing easy. Once you decide
on an amount and a share class, simply fill out an application and send in your
payment, or talk to your investment professional.
Minimum Investments
<TABLE>
<CAPTION>
Initial Additional
<S> <C> <C>
Regular Accounts $1,000 None
IRAs $250 None
Systematic Investment
Plan $50 $ 25
</TABLE>
<TABLE>
<S> <C> <C>
Method Opening an Account (see bold language above) Adding to an Account
By Mail or .Complete and sign the account application. . Make your check payable to Evergreen
through an .Make the check payable to Funds.
Investment Evergreen Funds. Cash,
Professional credit cards, third party
checks, credit card checks
or money orders will not
be accepted. . Write a note specifying:
. Mail the application -the Fund name
and your check to the -share class
address below: -your account number
Postal Service Address: Overnight Address: -the name(s) in which the account is
Evergreen Service Company Evergreen Service Company
P.O. Box 2121 200 Berkeley St. . Mail to the address below or deliver to
Boston, MA 02106-9970 Boston, MA 02116-5034 your investment professional.
. Or deliver them to
your investment
professional (provided
he or she has a
broker-dealer
arrangement with EDI).
By Phone . Call 1-800-343-2898 to . Call the Evergreen Express Line at
set up an account 1-800-346-3858 24 hours a day or to speak with an
number and get Evergreen professional call 1-800-343-2898 between
wiring instructions 8 a.m. and 6 p.m. Eastern time, on any business day.
(call before 12 noon if . If your bank account is set up on file, you
you want wired can request either:
funds to be credited
that day). - Federal Funds Wire (offers immediate
access to funds) or
. Instruct your bank to - Electronic transfer through the
wire or transfer your Automated Clearing House which avoids wiring fees.
purchase (they
may charge a wiring
fee).
. Complete the account
application and mail to: Overnight Address:
Evergreen Service Company Evergreen Service Company
P.O. Box 2121 200 Berkeley St.
Boston, MA 02106-9970 Boston, MA 02116-5034
. Wires received after
4 p.m. Eastern time on
market trading days will
receive the next
market day's closing
price.*
By Exchange . You can make an additional investment by exchange from an existing Evergreen Funds
account by contacting your investment professional or calling the Evergreen Express
Line at 1-800-346-3858.**
. You can only exchange shares within the same class and accounts with the same
registration.
. There is no sales charge or redemption fee when exchanging funds within the
Evergreen Fund family.***
. Orders placed before 4 p.m. Eastern time on market trading days will receive that
day's closing share price (if not, you will receive the next market day's closing
price).*
. Exchanges are limited to three per calendar quarter, but in no event more than five
per calendar year.
. Exchanges between accounts which do not have identical ownership must be made in
writing with a signature guarantee (See "Exceptions: Redemption Requests that
Require A Signature Guarantee" on the next page.)
Systematic . You can transfer money
Investment automatically from
Plan (SIP)+ your bank account into . To establish automatic investing for an
your Fund account on a existing account, call 1-800-343-2898
monthly basis. for an application.
. Initial investment . The minimum is $25 per month or $75 per
minimum is $50 if you quarter.
invest at least $25 . You can also establish an investing
per month with this service. program through direct deposit from your
. To enroll, check off paycheck. Call 1-800-343-2898 for details.
the box on the account
application and
provide:
-your bank account
information
-the amount and date of
your monthly investment.
</TABLE>
* The Fund's shares may be made available through financial service firms
which are also investment dealers and which have a service agreement with
EDI. The Fund has approved the acceptance of purchase and repurchase
request orders effective as of the time of their receipt by certain
authorized financial intermediaries.
** Once you have authorized either the telephone exchange or redemption
service, anyone with a Personal Identification Number (PIN) and the
required account information (including your broker) can request a
telephone transaction in your account. All calls are recorded and/or
monitored for verification, recordkeeping and quality-assurance purposes.
The Evergreen Funds reserve the right to terminate the exchange privilege
of any shareholder who exceeds the listed maximum number of exchanges, as
well as to reject any large dollar exchange if placing it would, in the
judgment of the portfolio manager, adversely affect the price of the Fund.
***This does not apply to exchanges from Class A shares of an Evergreen
money market fund, unless the account has been subject to a previous sales
charge.
+Evergreen Investment Services, Inc. (EIS) will fund a $50 initial
investment in Class A shares of the Evergreen Funds for employees of First
Union Corporation (First Union) and its affiliates when the employee
enrolls in a new Evergreen SIP and agrees to subsequent monthly investments
of $50. EIS will fund a $100 initial investment in Class A shares of the
Evergreen Funds for employees of First Union when the employee enrolls in a
new Evergreen SIP through a CAP account and agrees to subsequent monthly
investments of $100. To be eligible for either of these offers, the
employee must open an account with First Union Securities, Inc. to execute
the transactions. If the employee redeems his/her shares within 12 months
after the month of purchase, EIS reserves the right to reclaim its $50 or
$100 initial investment.
DOMESTIC GROWTH FUNDS
9
<PAGE>
EVERGREEN
HOW TO REDEEM SHARES
We offer you several convenient ways to redeem your shares in any of the
Evergreen Funds:
<TABLE>
<CAPTION>
Methods Requirements
<C> <S>
Call Us . Call the Evergreen Express Line at 1-800-346-3858 24 hours a day or to speak with an Evergreen professional
call 1-800-343-2898 between 8 a.m. and 6 p.m. Eastern time, on any business day.
. This service must be authorized ahead of time, and is only available for
regular accounts.*
. All authorized requests made before 4 p.m. Eastern time on market trading
days will be processed at that day's closing price. Requests made after 4
p.m. will be processed the following business day.**
. We can either:
- wire the proceeds into your bank account (service charges may apply).
- electronically transmit the proceeds into your bank account via the
Automated Clearing House service
- mail you a check.
. All telephone calls are recorded and/or monitored for your protection. We
are not responsible for acting on telephone orders we believe are genuine.
. See "Exceptions: Redemption Requests that Require A Signature Guarantee"
below for requests that must be made in writing with your signature
guaranteed.
Write Us . You can mail a Postal Service Address: Overnight Address:
redemption request
to: Evergreen Service Company Evergreen Service Company
P.O. Box 2121 200 Berkeley St.
Boston, MA 02106-9970 Boston, MA 02116-5034
. Your letter of instructions must:
- list the Fund name and the account number
- indicate the number of shares or dollar value you wish to redeem
- be signed by the registered owner(s).
. See "Exceptions: Redemption Requests that Require A Signature Guarantee"
below for requests that must be signature guaranteed.
. To redeem from an IRA or other retirement account, call 1-800-343-2898 for
instructions.
Redeem Your . You may also redeem your shares through participating broker-dealers by
Shares in delivering a letter as described above to your broker-dealer.
Person . A fee may be charged for this service.
Systematic . You can transfer money automatically from your Fund account on a monthly or
Withdrawal quarterly basis--without redemption fees.
Plan (SWP) . The withdrawal can be mailed to you, or deposited directly into your bank
account.
. The minimum is $75 per month.
. The maximum is 1.00% of your account per month or 3.00% per quarter.
. To enroll, call 1-800-343-2898 for instructions.
</TABLE>
* Once you have authorized either the telephone exchange or redemption
service, anyone with a Personal Identification Number (PIN) and the
required account information (including your broker) can request a
telephone transaction in your account. All calls are recorded and/or
monitored for verification, recordkeeping and quality-assurance purposes.
The Evergreen Funds reserve the right to terminate the exchange privilege
of any shareholder who exceeds the listed maximum number of exchanges, as
well as to reject any large dollar exchange if placing it would, in the
judgment of the portfolio manager, adversely affect the price of the Fund.
** The Fund's shares may be made available through financial service firms
which are also investment dealers and which have a service agreement with
EDI. The Fund has approved the acceptance of purchase and repurchase
request orders effective as of the time of their receipt by certain
authorized financial intermediaries.
Timing of Proceeds
Normally, we will send your redemption proceeds on the next business day after
we receive your request; however, we reserve the right to wait up to seven
business days to redeem any investments made by check and five business days
for investments made by Automated Clearing House transfer. We also reserve the
right to redeem in kind, under certain circumstances, by paying you the
proceeds of a redemption in securities rather than in cash, and to redeem the
remaining amount in the account if your redemption brings the account balance
below the initial minimum of $1,000.
Exceptions: Redemption Requests That Require A Signature Guarantee
To protect you and the Evergreen Funds against fraud, certain redemption
requests must be made in writing with your signature guaranteed. A signature
guarantee can be obtained at most banks and securities dealers. A notary public
is not authorized to provide a signature guarantee. The following circumstances
require signature guarantees:
.You are redeeming more than $50,000 Who Can Provide A
.You want the proceeds transmitted into a bank Signature Guarantee:
account not listed on the account .Commercial Bank
.You want the proceeds payable to anyone other than .Trust Company
the registered owner(s) of the account .Savings Association
.Either your address or the address of your bank .Credit Union
account has been changed within 30 days .Member of a U.S. stock
.The account is registered in the name of a exchange
fiduciary corporation or any other organization.
In these cases, additional documentation is
required:
corporate accounts: certified copy of corporate
resolution
fiduciary accounts: copy of the power of attorney
or other governing document
DOMESTIC GROWTH FUNDS
10
<PAGE>
EVERGREEN
OTHER SERVICES
Evergreen Express Line
1-800-346-3858
Use our automated, 24-hour service to check the value of your investment in a
Fund; purchase, redeem or exchange Fund shares; find a Fund's price, yield or
total return; order a statement or duplicate tax form; or hear market
commentary from Evergreen portfolio managers.
Automatic Reinvestment of Dividends
For the convenience of investors, all dividends and capital gains distributions
are automatically reinvested, unless you request otherwise. Distributions can
be made by check or electronic transfer through the Automated Clearing House to
your bank account. The details of your dividends and other distributions will
be included on your statement.
Payroll Deduction (Class A, Class B and Class C only)
If you want to invest automatically through your paycheck, call us to find out
how you can set up direct payroll deductions. The amounts deducted will be
invested in your Fund account using the Electronic Funds Transfer System. We
will provide the Fund account number. Your payroll department will let you know
the date of the pay period when your investment begins.
Telephone Investment Plan
You may make additional investments electronically in an existing Fund account
at amounts of not less than $100 or more than $10,000 per investment. Telephone
requests received by 4 p.m. Eastern time will be invested the day the request
is received.
Dividend Exchange
You may elect on the application to reinvest capital gains and/or dividends
earned in one Evergreen Fund into an existing account in another Evergreen Fund
in the same share class -- automatically. Please indicate on the application
the Evergreen Fund(s) into which you want to invest the distributions.
Reinstatement Privileges
Within 90 days of redemption you may reestablish your investment at the current
NAV by reinvesting some, or all, of your redemption proceeds into the same
share class of any Evergreen Fund. If a deferred sales charge was deducted from
your redemption proceeds, the full amount of the deferred sales charge will be
credited to your account and your deferred sales charge schedule will resume
from the time of the original redemption.
THE TAX CONSEQUENCES OF INVESTING IN THE FUND
You may be taxed in two ways:
. On Fund distributions (dividends and capital gains)
. On any profit you make when you sell any or all of your shares.
Fund Distributions
A mutual fund passes along to all of its shareholders the net income or profits
it receives from its investments. The shareholders of the fund then pay any
taxes due, whether they receive these distributions in cash or elect to have
them reinvested. The Funds will distribute two types of taxable income to you:
. Dividends. To the extent that regular dividends are derived from investment
income that is not tax-exempt, or from short-term capital gains, you will
have to include them in your federal taxable income. The Fund pays an annual
dividend from the dividends, interest and other income on the securities in
which it invests.
. Capital Gains. When a mutual fund sells a security it owns for a profit, the
result is a capital gain. The Fund generally distributes capital gains, if
any, at least once a year, near the end of the calendar year. Short-term
capital gains reflect securities held by the Fund for a year or less and are
considered ordinary income just like dividends. Profits on securities held
longer than 12 months are considered long-term capital gains and are taxed at
a special tax rate (20% for most taxpayers).
Dividend and Capital Gain Reinvestment
Unless you choose otherwise on the account application, all dividend and
capital gain payments will be reinvested to buy additional shares. Distribution
checks that are returned and distribution checks that are uncashed when the
shareholder has failed to respond to mailings from the shareholder servicing
agent may automatically be reinvested to buy additional shares. No interest
will accrue on amounts represented by uncashed distribution or redemption
checks.
DOMESTIC GROWTH FUNDS
11
<PAGE>
EVERGREEN
We will send you a statement each January with the federal tax status of
dividends and distributions paid by the Fund during the previous calendar year.
Profits You Realize When You Redeem Shares
When you sell shares in a mutual fund, whether by redeeming or exchanging, you
have created a taxable event. You must report any gain or loss on your tax
return unless the transaction was entered into by a tax-deferred retirement
plan. Investments in money market funds typically do not generate capital
gains. It is your responsibility to keep accurate records of your mutual fund
transactions. You will need this information when you file your income tax
return, since you must report any capital gain or loss you incur when you sell
shares. Remember, an exchange is a purchase and a sale for tax purposes.
Tax Reporting
Evergreen Service Company provides you with a tax statement of your dividend
and capital gains distributions for each calendar year on Form 1099 DIV.
Proceeds from a sale are reported on Form 1099B. You must report these on your
tax return. Since the IRS receives a copy as well, you could pay a penalty if
you neglect to report them.
Evergreen Service Company will send you a tax information guide each year
during tax season, which may include a cost basis statement detailing the gain
or loss on taxable transactions you had during the year. Please consult your
own tax advisor for further information regarding the federal, state and local
tax consequences of an investment in the Fund.
Retirement Plans
You may invest in the Fund through various retirement plans, including IRAs,
401(k) plans, Simplified Employee Plans (SEPs), 403(b) plans, 457 plans
and others. For special rules concerning these plans, including applications,
restrictions, tax advantages, and potential sales charge waivers, contact your
broker-dealer. To determine if a retirement plan may be appropriate for you,
consult your tax advisor.
FEES AND EXPENSES OF THE FUND
Every mutual fund has fees and expenses that are assessed either directly or
indirectly. This section describes each of those fees.
Management Fee
The management fee pays for the normal expenses of managing the Fund, including
portfolio manager salaries, research costs, corporate overhead expenses and
related expenses.
12b-1 Fees
The Trustees of the Evergreen Funds have approved a policy to assess 12b-1 fees
for Class A, Class B and Class C shares. Up to 0.75% of the average daily net
assets of Class A shares and up to 1.00% of the average daily net assets of
Class B shares and Class C shares may be payable as 12b-1 fees. However,
currently the 12b-1 fees for Class A shares are limited to 0.25% of the average
daily net assets of the class. These fees increase the cost of your investment.
The higher 12b-1 fees imposed on Class B and Class C shares may, over time,
cost more than the initial sales charge of Class A shares. The purpose of the
12b-1 fees is to promote the sale of more shares of the Fund to the public. The
Fund may use 12b-1 fees for advertising and marketing and as a "service fee" to
the broker-dealer for additional shareholder services.
Other Expenses
Other expenses include miscellaneous fees from affiliated and outside service
providers. These may include legal, audit, custodial and safekeeping fees, the
printing and mailing of reports and statements, automatic reinvestment of
distributions and other conveniences for which the shareholder pays no
transaction fees.
Total Fund Operating Expenses
The total cost of running the Fund is called the expense ratio. As a
shareholder, you are not charged these fees directly; instead they are taken
out before the Fund's net asset value is calculated, and are expressed as a
percentage of the Fund's average daily net assets. The effect of these fees is
reflected in the performance results for that share class. Because these fees
are "invisible," investors should examine them closely in the prospectus,
especially when comparing one fund with another fund in the same investment
category. There are three things to remember about expense ratios: i) your
total return in the Fund is reduced in direct proportion to the fees; ii)
expense ratios can vary greatly between funds and fund families, from under
0.25% to over 3.00%; and iii) the Fund's investment advisor may waive a portion
of the Fund's expenses for a period of time, reducing its expense ratio.
DOMESTIC GROWTH FUNDS
12
<PAGE>
EVERGREEN
OTHER FUND PRACTICES
The Fund may invest in futures and options which are forms of derivatives. The
Fund may also engage in short sales. Such practices are used to hedge the
Fund's portfolio, to maintain the Fund's exposure to its market, to manage cash
or to attempt to increase income. Although this is intended to increase
returns, these practices may actually reduce returns or increase volatility.
Please consult the Statement of Additional Information for more information
regarding these and other investment practices used by the Fund, including
risks.
DOMESTIC GROWTH FUNDS
13
<PAGE>
EVERGREEN
Notes
DOMESTIC GROWTH FUNDS
14
<PAGE>
EVERGREEN
Notes
DOMESTIC GROWTH FUNDS
15
<PAGE>
EVERGREEN
Evergreen Funds
Money Market Funds
Florida Municipal Money Market Fund
Money Market Fund
Municipal Money Market Fund
New Jersey Municipal Money Market Fund
Pennsylvania Municipal Money Market Fund
Treasury Money Market Fund
State Municipal Bond Funds
Connecticut Municipal Bond Fund
Florida High Income Municipal Bond Fund
Florida 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
National Municipal Bond Funds
High Grade Municipal Bond Fund
High Income Municipal Bond Fund
Municipal Bond Fund
Short-Intermediate Municipal Fund
Short and Intermediate Term
Bond Funds
Intermediate Term Bond Fund
Select Adjustable Rate Fund
Short-Duration Income Fund
Intermediate and Long Term
Bond Funds
Diversified Bond Fund
High Yield Bond Fund
Quality Income Fund
Strategic Income Fund
U.S. Government Fund
Balanced Funds
Balanced Fund
Foundation Fund
Tax Strategic Foundation Fund
Growth and Income Funds
Blue Chip Fund
Equity Income Fund
Equity Index Fund
Growth and Income Fund
Small Cap Value Fund
Value Fund
Domestic Growth Funds
Aggressive Growth Fund
Capital Growth Fund
Evergreen Fund
Growth Fund
Large Company Growth Fund
Masters Fund
Omega Fund
Premier 20 Fund
Small Company Growth Fund
Special Equity Fund
Stock Selector Fund
Tax Strategic Equity Fund
Sector Funds
Health Care Fund
Technology Fund
Utility and Telecommunications Fund
Global and International Funds
Emerging Markets Growth Fund
Global Leaders Fund
Global Opportunities Fund
International Growth Fund
Latin America Fund
Perpetual Global Fund
Perpetual International Fund
Precious Metals Fund
Express Line
800.346.3858
Investor Services
800.343.2898
www.evergreen-funds.com
DOMESTIC GROWTH FUNDS
16
<PAGE>
QUICK REFERENCE GUIDE
1 Evergreen Express Line
Call 1-800-346-3858
24 hours a day to
. check your account
. order a statement
. get a Fund's current price, yield and total return
. buy, redeem or exchange Fund shares
2 Investor Services
Call 1-800-343-2898
Monday through Friday, 8 a.m. to 6 p.m.
Eastern time to
.buy, redeem or exchange shares
.order applications
.get assistance with your account
3 Information Line for Hearing and Speech
Impaired (TTY/TDD)
Call 1-800-343-2888
Monday through Friday, 8 a.m. to 6 p.m.
Eastern time
4 Write us a letter
Evergreen Service Company
P.O. Box 2121
Boston, MA 02106-9970
.to buy, redeem or exchange shares
.to change the registration on your account
.for general correspondence
5 For express, registered or certified mail
Evergreen Service Company
200 Berkeley St.
Boston, MA 02116-5034
6 Visit us on-line
www.evergreen-funds.com
7 Regular communications you will receive
Account Statements -- You will receive quarterly statements for each
Fund you invest in.
Confirmation Notices -- We send a confirmation of any transaction you
make within five days of the transaction.
Annual and Semi-annual Reports -- You will receive a detailed financial
report on each Fund you invest in twice a year.
Tax Forms -- Each January you will receive any Fund tax information you
need to include with your tax returns as well as the Evergreen Tax
Information Guide.
<PAGE>
For More Information About the Evergreen Premier 20 Fund, Ask for:
The Statement of Additional Information (SAI), which
contains more detailed information about the
policies and procedures of the Fund. The SAI has
been filed with the Securities and Exchange
Commission (SEC) and its contents are legally
considered to be part of this prospectus.
For questions, other information, or to request a
copy, without charge, of any of the documents, call
1-800-343-2898 or ask your investment professional.
We will mail material within three business days.
Information about the Fund (including the SAI) is
also available on the SEC's Internet website at
http://www.sec.gov. Copies of this material may be
obtained, for a duplication fee, by writing the SEC
Public Reference Section, Washington D.C. 20549-
6009, or by electronic request at the following e-
mail address: [email protected]. This material can
also be reviewed and copied at the SEC's Public
Reference Room in Washington, D.C. For information
about the operation of the Public Reference Room,
call the SEC at 1-800-SEC-0330.
Evergreen Distributor, Inc.
90 Park Avenue
New York, New York 10016
SEC File No.:811-08413
48831 556253
PRSRT STD
U.S. POSTAGE
[LOGO OF EVERGREEN FUNDS] PAID
401 South Tryon Street LANCASTER, PA
Charlotte, NC 28288 PERMIT NO. 11
