1933 Act No. 333-42195
1940 Act No. 811-08553
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 4 [X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [ ]
Amendment No. 5 [X]
EVERGREEN INTERNATIONAL TRUST
(Exact Name of Registrant as Specified in Charter)
200 Berkeley Street, Boston, Massachusetts 02116-5034
(Address of Principal Executive Offices)
(617) 210-3200
(Registrant's Telephone Number)
The Corporation Trust Company
1209 Orange Street
Wilmington, Delaware 19801
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
[X] immediately upon filing pursuant to paragraph (b)
[ ] on (date) pursuant to paragraph (b)
[ ] 60 days after filing pursuant to paragraph (a)(i)
[ ] on (date) pursuant to paragraph (a)(i)
[ ] 75 days after filing pursuant to paragraph (a)(ii)
[ ] on (date) pursuant to paragraph (a)(ii) of Rule 485
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment
[ ] 60 days after filing pursuant to paragraph (a)(i)
[ ] on (date) pursuant to paragraph (a)(i)
<PAGE>
EVERGREEN INTERNATIONAL TRUST
CONTENTS OF
POST-EFFECTIVE AMENDMENT NO. 4
TO
REGISTRATION STATEMENT
This Post-Effective Amendment No. 4 to Registrant's Registration Statement
No. 333-42195/811-08553 consists of the following pages, items of information
and documents:
The Facing Sheet
The Contents Page
The Cross-Reference Sheet
PART A
------
Prospectuses for Evergreen Emerging Markets Growth Fund,
Evergreen Global Leaders Fund, Evergreen Global Opportunities Fund,
Evergreen International Equity Fund, Evergreen Latin America Fund,
Evergreen Natural Resources Fund, Evergreen Precious Metals Fund and
Evergreen International Growth Fund is contained herein.
PART B
------
Statement of Additional Information for Evergreen Emerging Markets Growth Fund,
Evergreen Global Leaders Fund, Evergreen Global Opportunities Fund,
Evergreen International Equity Fund, Evergreen Latin America Fund,
Evergreen Natural Resources Fund, Evergreen Precious Metals Fund and
Evergreen International Growth Fund is contained herein.
PART C
------
Financial Statements
Exhibits
Number of Holders of Securities
Indemnification
Business and Other Connections of Investment Adviser
Principal Underwriter
Location of Accounts and Records
Undertakings
Signatures
<PAGE>
EVERGREEN INTERNATIONAL TRUST
Cross-Reference Sheet pursuant to Rules 404 and 495 under the Securities
Act of 1933.
<TABLE>
<CAPTION>
N-1A Item No. Location in Prospectus(es)
<S> <C>
Part A
Item 1. Cover Page Cover Page
Item 2. Synopsis and Fee Table Expense Information; Performance Data
Item 3. Condensed Financial Information Financial Highlights
Item 4. General Description of Registrant Cover Page; Description of the Funds; Investment Objectives and Policies;
Investment Practices and Restrictions; Special Risk Considerations; General
Information
Item 5. Management of the Fund Organization and Service Providers; Expense Information
Item 6. Capital Stock and Other Securities Description of the Funds; Dividends, Distributions and Taxes; Shareholder
Services; General Information
Item 7. Purchase of Securities Being Offered Distribution Plans and Agreements; Purchase and Redemption of Shares; How to Buy
Shares; Shareholders Services
Item 8. Redemption or Repurchase Purchase and Redemption of Shares; How to Redeem Shares
Item 9. Pending Legal Proceedings Not Applicable
Location in Statement of
Part B Additional Information
Item 10. Cover Page Cover Page
Item 11. Table of Contents Table of Contents
Item 12. General Information and History Not Applicable
Item 13. Investment Objectives and Policies Fund Investments; Fundamental Policies; Investment Guidelines; Investment
Restrictions; Appendix
Item 14. Management of the Fund Management of the Trust
Item 15. Control Persons and Principal Principal Holders of Fund Shares
Holders of Securities
Item 16. Investment Advisory and Other Services Additional Information; Distributor; Distribution Plans and Agreements; Expenses;
Investment Adviser; Investment Advisory Agreements; Additional Service Providers;
Principal Underwriter; Contingent Deferred Sales Charges; Service Providers
Item 17. Brokerage Allocation Brokerage; Brokerage Commissions Paid
Item 18. Capital Stock and Other Securities Articles of Incorporation
Item 19. Purchase, Redemption and Pricing of How the Funds Offer Shares to the Public; Valuation of Portfolio Securities;
Shares Calculation of Net Asset Value Per Share; Additional Information
Item 20. Tax Status Additional Tax Information
Item 21. Underwriters Principal Underwriter
Item 22. Calculation of Performance Data Standardized Total Return and Yield Quotations
Item 23. Financial Statements Financial Information
</TABLE>
Part C
Information required to be included in Part C is set forth under the
appropriate item, so numbered, in Part C to this Registration Statement.
<PAGE>
EVERGREEN INTERNATIONAL TRUST
PART A
PROSPECTUSES
<PAGE>
- ----------------------------------------------------------------------------
PROSPECTUS March 1, 1998
- ----------------------------------------------------------------------------
[GRAPHIC OMITTED]
EVERGREENSM INTERNATIONAL AND GLOBAL GROWTH FUNDS
- ----------------------------------------------------------------------------
Evergreen Emerging Markets Growth Fund
Evergreen International Equity Fund
Evergreen Global Leaders Fund
Evergreen Global Opportunities Fund
Evergreen International Growth Fund
Evergreen Precious Metals Fund
Evergreen Latin America Fund
Evergreen Natural Resources Fund
CLASS A SHARES
CLASS B SHARES
CLASS C SHARES
The Evergreen International and Global Growth Funds (the "Funds") are
designed to provide investors with a selection of investment alternatives which
seek to provide capital growth and diversification.
This Prospectus provides information regarding the Class A, Class B and
Class C shares offered by the Funds. Each Fund is a series of an open-end,
diversified, management investment company. This Prospectus sets forth concise
information about the Funds that a prospective investor should know before
investing. The address of the Funds is 200 Berkeley Street, Boston,
Massachusetts 02116.
A Statement of Additional Information for the Funds dated March 1, 1998,
as supplemented from time to time, has been filed with the Securities and
Exchange Commission and is incorporated by reference herein. The Statement of
Additional Information provides information regarding certain matters discussed
in this Prospectus and other matters which may be of interest to investors, and
may be obtained without charge by calling the Funds at (800) 343-2898. There
can be no assurance that the investment objective of any Fund will be achieved.
Investors are advised to read this Prospectus carefully.
The shares offered by this Prospectus are not deposits or obligations of any
bank, are not endorsed or guaranteed by any bank, and are not insured or
otherwise protected by the U.S. Government, the Federal Deposit Insurance
Corporation, the Federal Reserve Board, or any other government agency and
involve risk, including the possible loss of principal.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
Keep This Prospectus For Future Reference
EVERGREENSM is a Service Mark of Evergreen Asset Management Corp. Copyright
1995, Evergreen Asset Management Corp.
<PAGE>
TABLE OF CONTENTS
-----------------
<TABLE>
<S> <C>
EXPENSE INFORMATION 3
FINANCIAL HIGHLIGHTS 6
DESCRIPTION OF THE FUNDS 19
Investment Objectives and Policies 19
Investment Practices and Restrictions 23
Special Risk Considerations 26
ORGANIZATION AND SERVICE PROVIDERS 28
Organization 28
Service Providers 29
Sub-Advisers 31
Distribution Plans and Agreements 32
</TABLE>
<TABLE>
<S> <C>
PURCHASE AND REDEMPTION OF SHARES 34
How to Buy Shares 34
How to Redeem Shares 37
Exchange Privilege 38
Shareholder Services 39
Banking Laws 40
OTHER INFORMATION 40
Dividends, Distributions and Taxes 40
General Information 41
</TABLE>
2
<PAGE>
- --------------------------------------------------------------------------------
EXPENSE INFORMATION
- --------------------------------------------------------------------------------
The table set forth below summarizes the shareholder transaction costs
associated with an investment in each Class A, Class B and Class C Shares of a
Fund. For further information see "Purchase and Redemption of Shares" and
"General Information -- Other Classes of Shares".
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES Class A Shares Class B Shares Class C Shares
<S> <C> <C> <C>
Maximum Sales Charge Imposed on Purchases
(as a % of offering price) 4.75% None None
Contingent Deferred Sales Charge
(as a % of original purchase price or redemption
proceeds, whichever is lower) None(1) 5.00%(2) 1.00%(2)
</TABLE>
Annual operating expenses reflect the normal operating expenses of the
Fund, and include costs such as management, distribution and other fees. The
table below shows each Fund's actual annual operating expenses for the fiscal
period ending October 31, 1997. The example shows what you would pay if you
invested $1,000 over the periods indicated. The example assumes that you
reinvest all of your dividends and that the Fund's average annual return will
be 5%. THE EXAMPLES ARE FOR ILLUSTRATION PURPOSES ONLY AND SHOULD NOT BE
CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES OR ANNUAL RETURN. THE
FUND'S ACTUAL EXPENSES AND RETURNS WILL VARY. For a more complete description
of the various costs and expenses borne by the Funds see "Organization and
Service Providers".
Evergreen Emerging Markets Growth Fund
<TABLE>
<CAPTION>
Examples
------------------------------------------------
Annual Operating Assuming Redemption at Assuming no
Expenses* End of Period Redemption
----------------------------- ----------------------------- ------------------
Class A Class B Class C Class A Class B Class C Class B Class C
--------- --------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees 1.00% 1.00% 1.00% After 1 Year $ 64 $ 75 $ 35 $ 25 $ 25
12b-1 Fees (3) .25% .75% .75% After 3 Years $100 $108 $ 78 $ 78 $ 78
Shareholder Service Fees -- % .25% .25% After 5 Years $138 $153 $133 $133 $133
Other Expenses .50% .50% .50% After 10 Years $244 $257 $284 $257 $284
---- ---- ----
Total* 1.75% 2.50% 2.50%
==== ==== ====
</TABLE>
Evergreen International Equity Fund
<TABLE>
<CAPTION>
Examples
------------------------------------------------
Annual Operating Assuming Redemption at Assuming no
Expenses* End of Period Redemption
----------------------------- ----------------------------- ------------------
Class A Class B Class C Class A Class B Class C Class B Class C
--------- --------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees .66% .66% .66% After 1 Year $ 60 $ 70 $ 30 $ 20 $ 20
12b-1 Fees (3) .25% .75% .75% After 3 Years $ 85 $ 93 $ 63 $ 63 $ 63
Shareholder Service Fees --% .25% .25% After 5 Years $113 $128 $108 $108 $108
Other Expenses .34% .34% .34% After 10 Years $191 $204 $233 $204 $233
---- ---- ----
Total* 1.25% 2.00% 2.00%
==== ==== ====
</TABLE>
Evergreen Global Leaders Fund
<TABLE>
<CAPTION>
Examples
------------------------------------------------
Annual Operating Assuming Redemption at Assuming no
Expenses* End of Period Redemption
----------------------------- ----------------------------- ------------------
Class A Class B Class C Class A Class B Class C Class B Class C
--------- --------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees .88% .88% .88% After 1 Year $ 66 $ 77 $ 37 $ 27 $ 27
12b-1 Fees (3) .25% .75% .75% After 3 Years $105 $113 $ 82 $ 83 $ 82
Shareholder Service Fees -- .25% .25% After 5 Years $146 $161 $141 $141 $141
Other Expenses .78% .78% .77% After 10 Years $260 $273 $298 $273 $298
---- ---- ---- ---------------- ---- ---- ---- ---- ----
Total* 1.91% 2.66% 2.65%
==== ==== ====
</TABLE>
3
<PAGE>
Evergreen Global Opportunities Fund
<TABLE>
<CAPTION>
Examples
------------------------------------------------
Annual Operating Assuming Redemption at Assuming no
Expenses End of Period Redemption
----------------------------- ----------------------------- ------------------
Class A Class B Class C Class A Class B Class C Class B Class C
--------- --------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees. .97% .97% .97% After 1 Year $ 66 $ 77 $ 37 $ 27 $ 27
12b-1 Fees (3) .25% .75% .75% After 3 Years $103 $111 $ 81 $ 81 $ 81
Shareholder Service Fees -- .25% .25% After 5 Years $144 $159 $139 $139 $139
Other Expenses .65% .65% .65% After 10 Years $256 $269 $295 $269 $295
---- ---- ----
Total 1.87% 2.62% 2.62%
==== ==== ====
</TABLE>
Evergreen International Growth Fund
<TABLE>
<CAPTION>
Examples
------------------------------------------------
Annual Operating Assuming Redemption at Assuming no
Expenses End of Period Redemption
--------------------------------- ----------------------------- ------------------
Class A** Class B Class C** Class A Class B Class C Class B Class C
----------- --------- ----------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees .75% .75% .75% After 1 Year $ 63 $ 74 $ 34 $ 24 $ 24
12b-1 Fees (3) .25% .75% .75% After 3 Years $ 97 $105 $ 75 $ 75 $ 75
Shareholder Service Fees -- .25% .25% After 5 Years $132 $148 $128 $128 $128
Other Expenses .64% .64% .64% After 10 Years $233 $245 $273 $245 $273
---- ---- ----
Total 1.64% 2.39% 2.39%
==== ==== ====
</TABLE>
Evergreen Precious Metals Fund
<TABLE>
<CAPTION>
Examples
------------------------------------------------
Annual Operating Assuming Redemption at Assuming no
Expenses End of Period Redemption
--------------------------------- ----------------------------- ------------------
Class A** Class B Class C** Class A Class B Class C Class B Class C
----------- --------- ----------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees .71% .71% .71% After 1 Year $ 64 $ 75 $ 35 $ 25 $ 25
12b-1 Fees (3) .25% .75% .75% After 3 Years $ 99 $107 $ 77 $ 77 $ 77
Shareholder Service Fees -- .25% .25% After 5 Years $135 $152 $132 $132 $132
Other Expenses .77% .77% .77% After 10 Years $242 $254 $282 $254 $282
---- ---- ----
Total 1.73% 2.48% 2.48%
==== ==== ====
</TABLE>
Evergreen Latin America Fund
<TABLE>
<CAPTION>
Examples
------------------------------------------------
Annual Operating Assuming Redemption at Assuming no
Expenses End of Period Redemption
----------------------------- ----------------------------- ------------------
Class A Class B Class C Class A Class B Class C Class B Class C
--------- --------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees .75% .75% .75% After 1 Year $ 64 $ 75 $ 35 $ 25 $ 25
12b-1 Fees (3) .23% .75% .75% After 3 Years $ 98 $108 $ 77 $ 78 $ 77
Shareholder Service Fees -- .25% .25% After 5 Years $135 $153 $132 $133 $132
Other Expenses .71% .75% .72% After 10 Years $238 $254 $281 $254 $281
---- ---- ----
Total 1.69% 2.50% 2.47%
==== ==== ====
</TABLE>
Evergreen Natural Resources Fund
<TABLE>
<CAPTION>
Examples
------------------------------------------------
Annual Operating Assuming Redemption at Assuming no
Expenses End of Period Redemption
----------------------------- ----------------------------- ------------------
Class A Class B Class C Class A Class B Class C Class B Class C
--------- --------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management Fees 1.00% 1.00% 1.00% After 1 Year $ 67 $ 78 $ 38 $ 28 $ 28
12b-1 Fees (3) .25% .75% .75% After 3 Years $108 $117 $ 87 $ 87 $ 87
Shareholder Service Fees -- .25% .25% After 5 Years $151 $167 $147 $147 $147
Other Expenses .76% .79% .79% After 10 Years $270 $284 $312 $284 $312
---- ---- ----
Total 2.01% 2.79% 2.79%
==== ==== ====
</TABLE>
- --------
(1) 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 upon
redemption within one year after the month of purchase.
(2) The deferred sales charge on Class B shares declines from 5% to 1% on
amounts redeemed within six years after the month of purchase. The
deferred sales charge on Class C shares is 1% on amounts redeemed within
one year after the month of purchase. No sales charge is imposed on
redemptions made thereafter. See "Purchase and Redemption of Shares" for
more information.
4
<PAGE>
(3) Class A Shares can pay up to .75 of 1% of average net assets as a 12b-1
Fee. For the forseeable future, the Class A Shares 12b-1 Fees will be
limited to .25 of 1% of average net assets. For Class B and Class C
Shares, a portion of the 12b-1 Fees equivalent to .25 of 1% of average net
assets will be shareholder servicing-related. Distribution-related 12b-1
Fees will be limited to .75 of 1% of average net assets as permitted under
the rules of the National Association of Securities Dealers, Inc.
* The annual operating expenses and examples do not reflect certain fee
waivers and expense reimbursements for the most recent fiscal period. Actual
expenses, absent fee waivers and expense reimbursements for the fiscal
period ended October 31, 1997 for Class A, B and C Shares were as follows:
<TABLE>
<CAPTION>
Class A Class B Class C
--------- --------- ----------
<S> <C> <C> <C>
Evergreen Emerging Markets Growth Fund 2.26% 3.00% 3.01%
Evergreen International Equity Fund 1.36% 2.11% 2.11%
Evergreen Global Leaders Fund 1.98% 2.74% 2.73%
</TABLE>
** Class A and Class C shares for Evergreen International Growth Fund and
Evergreen Precious Metals Fund were initially offered to the public on
January 9, 1998. The above annuallized operating expenses have been
estimated for the fiscal year ending October 31, 1998. Such estimates are
based on the actual operating results of Class B for the fiscal period ended
October 31, 1997, adjusted for each Classes respective Distribution Plan
expenses.
From time to time, each Fund's investment adviser may, at its discretion,
reduce or waive its fees or reimburse the Funds for certain of their expenses
in order to reduce their expense ratios. Each Fund's investment adviser may
cease these waivers and reimbursements at any time.
5
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The tables on the following pages present, for each Fund, financial
highlights for a share outstanding throughout each period indicated. The
information in the tables for the fiscal years ended October 31, 1997 for
Evergreen Emerging Markets Growth Fund, Evergreen International Equity Fund and
Evergreen Global Leaders Fund has been audited by Price Waterhouse LLP, each
Fund's independent auditors. The information in the tables for Evergreen
Emerging Markets Growth Fund and Evergreen International Equity Fund for each
of the fiscal periods ended October 31, 1995 and December 31, 1994 was audited
by the Funds' prior auditors. The information in the tables for Evergreen
Global Opportunities Fund, Evergreen International Growth Fund's Class B
shares, Evergreen Precious Metals Fund's Class B shares, Evergreen Latin
America Fund and Evergreen Natural Resources Fund has been audited by KPMG Peat
Marwick LLP, the Fund's current independent auditors. Class A and C shares of
Evergreen International Growth Fund and Evergreen Precious Metals Fund
commenced operations on January 9, 1998 and are therefore not presented in the
tables below. The tables appear in the Funds' annual report to shareholders and
should be read in conjunction with each Fund's financial statements and related
notes, which also appear, together with the independent auditors' report, in
the Funds' annual report to shareholders. The Funds' financial statements,
related notes and independent auditors' report are incorporated by reference
into the Funds' Statement of Additional Information.
Further information about a Fund's performance is contained in the Fund's
annual report to shareholders, which may be obtained without charge.
Evergreen Emerging Markets Growth Fund
<TABLE>
<CAPTION>
Class A Shares
----------------------------------------
Year Ended October 31,
----------------------------------------
1997** 1996** 1995#
------------ ------------ --------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of year .................................................. $ 8.46 $ 7.90 $ 8.17
-------- -------- ---------
Income (loss) from investment operations:
Net investment income (loss) ...................................................... 0 (0.01) 0.05
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ..................................................................... 1.53 0.62 (0.32)
-------- -------- ---------
Total from investment operations ................................................. 1.53 0.61 (0.27)
-------- -------- ---------
Less distributions from net investment income ...................................... 0 (0.05) 0
-------- -------- ---------
Net asset value, end of year ....................................................... $ 9.99 $ 8.46 $ 7.90
======== ======== =========
Total Return+ ...................................................................... 18.1 % 7.7 % (3.3 %)
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .......................................................................... 1.75 % 1.74 % 1.73%++
Expenses, excluding indirectly paid expenses ...................................... 1.74 % N/A N/A
Expenses, excluding fee waivers & expense reimbursements .......................... 2.26 % 3.58 % 3.97%++
Net investment income (loss) ...................................................... (0.02 %) (0.09 %) 0.76%++
Portfolio turnover rate ............................................................ 157% 107% 65%
Average commission rate per share .................................................. $ .0019 $ .0103 N/A
Net assets end of year (thousands) ................................................. $ 2,777 $ 1,645 $ 1,117
<CAPTION>
Class A Shares
-----------------
Year Ended
December 31,
1994*
-----------------
<S> <C>
Per Share Data:
Net asset value beginning of year .................................................. $ 10.00
----------
Income (loss) from investment operations:
Net investment income (loss) ...................................................... 0
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ..................................................................... ( 1.83)
----------
Total from investment operations ................................................. ( 1.83)
----------
Less distributions from net investment income ...................................... 0
----------
Net asset value, end of year ....................................................... $ 8.17
==========
Total Return+ ...................................................................... (18.3 %)
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .......................................................................... 1.78%++
Expenses, excluding indirectly paid expenses ...................................... N/A
Expenses, excluding fee waivers & expense reimbursements .......................... 3.96%++
Net investment income (loss) ...................................................... ( 0.12%)++
Portfolio turnover rate ............................................................ 17%
Average commission rate per share .................................................. N/A
Net assets end of year (thousands) ................................................. $ 867
</TABLE>
- --------
* For the period from September 6, 1994 (commencement of operations) to
December 31, 1994.
** Net investment income is based on average monthly shares outstanding for
the periods indicated.
# The Fund changed its year end from December 31 to October 31, effective
October 31, 1995.
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
6
<PAGE>
Evergreen Emerging Markets Growth Fund
<TABLE>
<CAPTION>
Class B Shares
----------------------------------------
Year Ended October 31,
----------------------------------------
1997** 1996** 1995#
------------ ------------ --------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of year .................................................. $ 8.39 $ 7.85 $ 8.16
-------- -------- ---------
Income (loss) from investment operations:
Net investment income (loss) ...................................................... (0.08) (0.08) 0.01
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ..................................................................... 1.54 0.62 (0.32)
-------- -------- ---------
Total from investment operations ................................................. 1.46 0.54 (0.31)
-------- -------- ---------
Net asset value, end of year ....................................................... $ 9.85 $ 8.39 $ 7.85
======== ======== =========
Total Return+ ...................................................................... 17.4 % 6.9 % (3.8 %)
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .......................................................................... 2.50 % 2.50 % 2.48%++
Expenses, excluding indirectly paid expenses ...................................... 2.49 % N/A N/A
Expenses, excluding fee waivers & expense reimbursements .......................... 3.00 % 4.34 % 4.72%++
Net investment income (loss) ...................................................... (0.79 %) (0.87 %) 0.03%++
Portfolio turnover rate ............................................................ 157% 107% 65%
Average commission rate per share .................................................. $ .0019 $ .0103 N/A
Net assets end of year (thousands) ................................................. $ 4,020 $ 2,881 $ 1,940
<CAPTION>
Class B Shares
-----------------
Year Ended
December 31,
1994*
-----------------
<S> <C>
Per Share Data:
Net asset value beginning of year .................................................. $ 10.00
----------
Income (loss) from investment operations:
Net investment income (loss) ...................................................... ( 0.02)
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ..................................................................... ( 1.82)
----------
Total from investment operations ................................................. ( 1.84)
----------
Net asset value, end of year ....................................................... $ 8.16
==========
Total Return+ ...................................................................... (18.4 %)
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .......................................................................... 2.53%++
Expenses, excluding indirectly paid expenses ...................................... N/A
Expenses, excluding fee waivers & expense reimbursements .......................... 4.71%++
Net investment income (loss) ...................................................... ( 0.84%)++
Portfolio turnover rate ............................................................ 17%
Average commission rate per share .................................................. N/A
Net assets end of year (thousands) ................................................. $ 1,589
</TABLE>
<TABLE>
<CAPTION>
Class C Shares
----------------------------------------
Year Ended October 31,
----------------------------------------
1997** 1996** 1995#
------------ ------------ --------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of year .................................................. $ 8.38 $ 7.84 $ 8.16
-------- -------- ---------
Income (loss) from investment operations:
Net investment income (loss) ...................................................... (0.06) (0.08) 0.02
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ..................................................................... 1.53 0.62 (0.34)
-------- -------- ---------
Total from investment operations ................................................. 1.47 0.54 (0.32)
-------- -------- ---------
Net asset value, end of year ....................................................... $ 9.85 $ 8.38 $ 7.84
======== ======== =========
Total Return+ ...................................................................... 17.5 % 6.9 % (3.9 %)
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .......................................................................... 2.50 % 2.51 % 2.50%++
Expenses, excluding indirectly paid expenses ...................................... 2.49 % N/A N/A
Expenses, excluding fee waivers & expense reimbursements .......................... 3.01 % 4.31 % 4.74%++
Net investment income (loss) ...................................................... (0.61 %) (0.91 %) 0.72%++
Portfolio turnover rate ............................................................ 157% 107% 65%
Average commission rate per share .................................................. $ .0019 $ .0103 N/A
Net assets end of year (thousands) ................................................. $ 1,282 $ 85 $ 56
<CAPTION>
Class C Shares
-----------------
Year Ended
December 31,
1994*
-----------------
<S> <C>
Per Share Data:
Net asset value beginning of year .................................................. $ 10.00
----------
Income (loss) from investment operations:
Net investment income (loss) ...................................................... ( 0.02)
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ..................................................................... ( 1.82)
----------
Total from investment operations ................................................. ( 1.84)
----------
Net asset value, end of year ....................................................... $ 8.16
==========
Total Return+ ...................................................................... (18.4 %)
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .......................................................................... 2.53%++
Expenses, excluding indirectly paid expenses ...................................... N/A
Expenses, excluding fee waivers & expense reimbursements .......................... 4.71%++
Net investment income (loss) ...................................................... ( 0.82%)++
Portfolio turnover rate ............................................................ 17%
Average commission rate per share .................................................. N/A
Net assets end of year (thousands) ................................................. $ 89
</TABLE>
- --------
* For the period from September 6, 1994 (commencement of operations) to
December 31, 1994.
** Net investment income is based on average monthly shares outstanding for
the periods indicated.
# The Fund changed its year end from December 31 to October 31, effective
October 31, 1995.
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
7
<PAGE>
Evergreen International Equity Fund
<TABLE>
<CAPTION>
Class A Shares
-----------------------------------------
Year Ended October 31,
-----------------------------------------
1997** 1996** 1995#
------------- ------------ --------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of year .................................................. $ 10.43 $ 9.58 $ 9.50
-------- --------- ---------
Income (loss) from investment operations:
Net investment income ............................................................. 0.07 0.17 0.09
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ..................................................................... 0.72 0.78 0
-------- --------- ---------
Total from investment operations ................................................. 0.79 0.95 0.09
-------- --------- ---------
Less distributions from net investment income ...................................... ( 0.15) ( 0.10) (0.01)
-------- --------- ---------
Net asset value, end of year ....................................................... $ 11.07 $ 10.43 $ 9.58
======== ========= =========
Total Return+ ...................................................................... 7.6 % 9.9 % 1.1 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .......................................................................... 1.25 % 1.24 % 1.19%++
Expenses, excluding indirectly paid expenses ...................................... 1.24 % N/A N/A
Expenses, excluding fee waivers & expense reimbursements .......................... 1.36 % 1.66 % 1.84%++
Net investment income ............................................................. 0.70 % 1.65 % 1.38%++
Portfolio turnover rate ............................................................ 86% 113% 4%
Average commission rate per share .................................................. $ .0187 $ .0068 N/A
Net assets end of year (thousands) ................................................. $ 9,270 $ 7,234 $ 3,594
<CAPTION>
Class A Shares
--------------
Year Ended
December 31,
1994*
-------------
<S> <C>
Per Share Data:
Net asset value beginning of year .................................................. $ 10.00
---------
Income (loss) from investment operations:
Net investment income ............................................................. 0.02
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ..................................................................... ( 0.52)
---------
Total from investment operations ................................................. ( 0.50)
---------
Less distributions from net investment income ...................................... 0
---------
Net asset value, end of year ....................................................... $ 9.50
=========
Total Return+ ...................................................................... ( 5.1 %)
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .......................................................................... 1.26%++
Expenses, excluding indirectly paid expenses ...................................... N/A
Expenses, excluding fee waivers & expense reimbursements .......................... 2.09%++
Net investment income ............................................................. 0.91%++
Portfolio turnover rate ............................................................ 1%
Average commission rate per share .................................................. N/A
Net assets end of year (thousands) ................................................. $ 2,545
</TABLE>
<TABLE>
<CAPTION>
Class B Shares
-----------------------------------------
Year Ended October 31,
-----------------------------------------
1997** 1996** 1995#
------------- ------------ --------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of year ................................................... $ 10.37 $ 9.53 $ 9.50
-------- --------- ---------
Income (loss) from investment operations:
Net investment income (loss) ....................................................... 0 0.11 0.06
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ...................................................................... 0.70 0.76 (0.03)
-------- --------- ---------
Total from investment operations .................................................. 0.70 0.87 0.03
-------- --------- ---------
Less distributions from net investment income ....................................... ( 0.08) ( 0.03) 0
-------- --------- ---------
Net asset value, end of year ........................................................ $ 10.99 $ 10.37 $ 9.53
======== ========= =========
Total Return+ ....................................................................... 6.8 % 9.2 % 0.5 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses ........................................................................... 2.00 % 2.00 % 1.94%++
Expenses, excluding indirectly paid expenses ....................................... 2.00 % N/A N/A
Expenses, excluding fee waivers & expense reimbursements ........................... 2.11 % 2.42 % 2.59%++
Net investment income (loss) ....................................................... ( 0.05 %) 1.05 % 0.66%++
Portfolio turnover rate ............................................................. 86% 113% 4%
Average commission rate per share ................................................... $ .0187 $ .0068 N/A
Net assets end of year (thousands) .................................................. $ 22,164 $ 14,110 $ 7,278
<CAPTION>
Class B Shares
--------------
Year Ended
December 31,
1994*
-------------
<S> <C>
Per Share Data:
Net asset value beginning of year ................................................... $ 10.00
---------
Income (loss) from investment operations:
Net investment income (loss) ....................................................... 0
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ...................................................................... ( 0.50)
---------
Total from investment operations .................................................. ( 0.50)
---------
Less distributions from net investment income ....................................... 0
---------
Net asset value, end of year ........................................................ $ 9.50
=========
Total Return+ ....................................................................... ( 5.2 %)
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses ........................................................................... 2.02%++
Expenses, excluding indirectly paid expenses ....................................... N/A
Expenses, excluding fee waivers & expense reimbursements ........................... 2.85%++
Net investment income (loss) ....................................................... 0.10%++
Portfolio turnover rate ............................................................. 1%
Average commission rate per share ................................................... N/A
Net assets end of year (thousands) .................................................. $ 5,602
</TABLE>
- --------
* For the period from September 2, 1994 (commencement of operations) to
December 31, 1994.
** Net investment income is based on average monthly shares outstanding for
the periods indicated.
# The Fund changed its year end from December 31 to October 31, effective
October 31, 1995.
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
8
<PAGE>
Evergreen International Equity Fund
<TABLE>
<CAPTION>
Class C Shares
--------------
Year Ended
October 31,
-------------
1997**
-------------
<S> <C>
Per Share Data:
Net asset value beginning of year .................................................. $ 10.41
--------
Income (loss) from investment operations:
Net investment income (loss) ...................................................... ( 0.01)
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ..................................................................... 0.71
--------
Total from investment operations ................................................. 0.70
--------
Less distributions from net investment income ...................................... ( 0.06)
--------
Net asset value, end of year ....................................................... $ 11.05
========
Total Return+ ...................................................................... 6.8 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .......................................................................... 2.00 %
Expenses, excluding indirectly paid expenses ...................................... 1.99 %
Expenses, excluding fee waivers & expense reimbursements .......................... 2.11 %
Net investment income ............................................................. ( 0.06 %)
Portfolio turnover rate ............................................................ 86%
Average commission rate per share .................................................. $ .0187
Net assets end of year (thousands) ................................................. $ 429
<CAPTION>
Class C Shares
---------------------------------------------
Year Ended October 31, Year Ended
------------------------------- December 31,
1996** 1995# 1994*
---------------- -------------- -------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of year .................................................. $ 9.53 $ 9.49 $ 10.00
--------- --------- ---------
Income (loss) from investment operations:
Net investment income (loss) ...................................................... 0.12 0.08 0.30
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ..................................................................... 0.76 (0.04) (0.54)
--------- --------- ---------
Total from investment operations ................................................. 0.88 0.04 (0.51)
--------- --------- ---------
Less distributions from net investment income ...................................... ( 0.00)(a) 0 0
--------- --------- ---------
Net asset value, end of year ....................................................... $ 10.41 $ 9.53 $ 9.49
========= ========= =========
Total Return+ ...................................................................... 9.3 % 0.5 % (5.2)%
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .......................................................................... 1.99 % 1.94%++ 2.01%++
Expenses, excluding indirectly paid expenses ...................................... N/A N/A N/A
Expenses, excluding fee waivers & expense reimbursements .......................... 2.43 % 2.59%++ 2.84%++
Net investment income ............................................................. 1.16 % 0.79%++ 0.85%++
Portfolio turnover rate ............................................................ 113% 4% 1%
Average commission rate per share .................................................. $ .0068 N/A N/A
Net assets end of year (thousands) ................................................. $ 188 $ 196 $ 163
</TABLE>
- --------
* For the period from September 2, 1994 (commencement of operations) to
December 31, 1994.
** Net investment income is based on average monthly shares outstanding for
the periods indicated.
# The Fund changed its year end from December 31 to October 31, effective
October 31, 1995.
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
(a) Less than one cent per share.
9
<PAGE>
Evergreen Global Leaders Fund
<TABLE>
<CAPTION>
Class A Shares
----------------------------
Year Ended October 31,
----------------------------
1997 1996*
------------- --------------
<S> <C> <C>
Per Share Data:
Net asset value beginning of year ........................................................ $ 11.91 $ 11.29
-------- ---------
Income (loss) from investment operations: **
Net investment income (loss) ............................................................ ( 0.01) 0
Net realized and unrealized gain on investments and foreign currency related 1.78 0.62
-------- ---------
transactions
Total from investment operations ....................................................... 1.77 0.62
-------- ---------
Less distributions from net realized gain on investments ................................. ( 0.01) 0
-------- ---------
Net asset value, end of year ............................................................. $ 13.67 $ 11.91
======== =========
Total Return+ ............................................................................ 14.9 % 5.5 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses ................................................................................ 1.91 % 1.75 %++
Expenses, excluding indirectly paid expenses ............................................ 1.90 % N/A
Expenses, excluding fee waivers & expense reimbursements ................................ 1.98 % 2.16 %++
Net investment income (loss) ............................................................ ( .05 %) 0.10 %++
Portfolio turnover rate .................................................................. 29% 20%
Average commission rate per share ........................................................ $ .0418 $ .0659
Net assets end of year (thousands) ....................................................... $ 38,604 $ 12,975
</TABLE>
<TABLE>
<CAPTION>
Class B Shares
------------------------------
Year Ended October 31,
------------------------------
1997 1996*
------------- ----------------
<S> <C> <C>
Per Share Data:
Net asset value beginning of year ........................................................ $ 11.87 $ 11.29
-------- ---------
Income (loss) from investment operations: **
Net investment loss ..................................................................... ( 0.11) ( 0.02)
Net realized and unrealized gain on investments and foreign currency related 1.77 0.60
-------- ---------
transactions
Total from investment operations ....................................................... 1.66 0.58
-------- ---------
Less distributions from net realized gain on investments ................................. ( 0.01) 0
-------- ---------
Net asset value, end of year ............................................................. $ 13.52 $ 11.87
======== =========
Total Return+ ............................................................................ 14.0 % 5.1 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses ................................................................................ 2.66 % 2.50 %++
Expenses, excluding indirectly paid expenses ............................................ 2.66 % N/A
Expenses, excluding fee waivers & expense reimbursements ................................ 2.74 % 2.93 %++
Net investment loss ..................................................................... ( 0.83 %) ( 0.68 %)++
Portfolio turnover rate .................................................................. 29% 20%
Average commission rate per share ........................................................ $ .0418 $ .0659
Net assets end of year (thousands) ....................................................... $ 134,375 $ 41,948
</TABLE>
- --------
* For the period from June 3, 1996 (commencement of operations) to October 31,
1996.
** Net investment income is based on average monthly shares outstanding for
the periods indicated.
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
10
<PAGE>
Evergreen Global Leaders Fund
<TABLE>
<CAPTION>
Class C Shares
------------------------------
Year Ended October 31,
------------------------------
1997 1996*
------------- ----------------
<S> <C> <C>
Per Share Data:
Net asset value beginning of year ........................................................ $ 11.86 $ 11.29
-------- ---------
Income (loss) from investment operations: **
Net investment income (loss) ............................................................ ( 0.11) ( 0.02)
Net realized and unrealized gain on investments and foreign currency related 1.77 0.59
-------- ---------
transactions
Total from investment operations ....................................................... 1.66 0.57
-------- ---------
Less distributions from net realized gain on investments ................................. ( 0.01) 0
-------- ---------
Net asset value, end of year ............................................................. $ 13.51 $ 11.86
======== =========
Total Return+ ............................................................................ 14.0 % 5.0 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses ................................................................................ 2.65 % 2.50 %++
Expenses, excluding indirectly paid expenses ............................................ 2.65 % N/A
Expenses, excluding fee waivers & expense reimbursements ................................ 2.73 % 2.93 %++
Net investment loss ..................................................................... ( 0.80 %) ( 0.67 %)++
Portfolio turnover rate .................................................................. 29% 20%
Average commission rate per share ........................................................ $ .0418 $ .0659
Net assets end of year (thousands) ....................................................... $ 2,386 $ 554
</TABLE>
- --------
* For the period from June 3, 1996 (commencement of operations) to October 31,
1996.
** Net investment income is based on average monthly shares outstanding for
the periods indicated.
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
11
<PAGE>
Evergreen Global Opportunities Fund
<TABLE>
<CAPTION>
Class A Shares
--------------------------------------
Year Ended
One-Month September 30,
Period Ended ----------------
October 31, 1997 (d) 1997
--------------------- ----------------
<S> <C> <C>
Per Share Data:
Net asset value beginning of period .............. $ 24.90 $ 24.56
-------- ---------
Income from investment operations
Net investment income (loss) .................... 0.02 ( 0.17)(c)
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions ................................... ( 1.39) 1.76
---------- ---------
Total from investment operations ............... ( 1.37) 1.59
---------- ---------
Less distributions from:
Net investment income ........................... 0 0
Net realized gain on investments ................ 0 ( 1.25)
---------- ---------
Total distributions ............................ 0 ( 1.25)
---------- ---------
Net asset value, end of period ................... $ 23.53 $ 24.90
========== =========
Total Return(a) .................................. ( 5.50 %) 6.95 %
Ratios/Supplemental Data:
Ratios to average net assets:
Expenses ........................................ 1.87 %(b) 1.67 %
Expenses excluding indirectly paid expenses ..... 1.85 %(b) 1.66 %
Expenses excluding fee waivers & expense
reimbursements ................................. N/A N/A
Net investment income (loss) .................... ( 1.40 %)(b) ( 0.69 %)
Portfolio turnover rate .......................... 7% 72%
Average commissions rate paid per share .......... $ 0.0019 $ 0.0066
Net assets end of period (thousands) ............. $ 98,031 $ 113,477
<CAPTION>
Class A Shares
-------------------------------------------------
Year Ended September 30,
-------------------------------------------------
1996 1995 1994 1993
------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Per Share Data:
Net asset value beginning of period .............. $ 23.43 $ 19.42 $ 18.02 $ 11.69
-------- ------- ------- -------
Income from investment operations
Net investment income (loss) .................... ( 0.06) ( 0.16) ( 0.04) ( 0.14)
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions ................................... 1.19 4.17 1.60 6.47
-------- ------- ------- -------
Total from investment operations ............... 1.13 4.01 1.56 6.33
-------- ------- ------- -------
Less distributions from:
Net investment income ........................... 0 0 0 0
Net realized gain on investments ................ 0 0 ( 0.16) 0
-------- ------- ------- -------
Total distributions ............................ 0 0 ( 0.16) 0
-------- ------- ------- -------
Net asset value, end of period ................... $ 24.56 $ 23.43 $ 19.42 $ 18.02
======== ======= ======= =======
Total Return(a) .................................. 4.82 % 20.65% 8.74% 54.15%
Ratios/Supplemental Data:
Ratios to average net assets:
Expenses ........................................ 1.62 % 1.83% 2.01% 2.84%
Expenses excluding indirectly paid expenses ..... 1.60 % 1.81% N/A N/A
Expenses excluding fee waivers & expense
reimbursements ................................. N/A N/A N/A N/A
Net investment income (loss) .................... ( 0.53 %) ( 0.83%) ( 0.86%) ( 1.72%)
Portfolio turnover rate .......................... 67% 35% 32% 64%
Average commissions rate paid per share .......... $ 0.0079 N/A N/A N/A
Net assets end of period (thousands) ............. $ 250,427 $94,679 $71,122 $29,942
</TABLE>
<TABLE>
<CAPTION>
Class A Shares
---------------------------------------------
Year Ended September 30,
---------------------------------------------
1992 1991 1990 1989
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Per Share Data:
Net asset value beginning of period ................................... $ 12.89 $ 9.89 $ 11.17 $ 9.77
------- ------- -------- -------
Income from investment operations
Net investment income (loss) ......................................... ( 0.08) 0.17 0.19 0.09
Net realized and unrealized gain (loss) on investments and foreign
currency related transactions ....................................... 0.23 3.06 ( 1.27) 1.66
------- ------- -------- -------
Total from investment operations .................................... 0.15 3.23 ( 1.08) 1.75
------- ------- -------- -------
Less distributions from:
Net investment income ................................................ 0 ( 0.23) ( 0.12) ( 0.09)
Net realized gain on investments ..................................... ( 1.35) 0 ( 0.08) ( 0.26)
------- ------- -------- -------
Total distributions ................................................. ( 1.35) ( 0.23) ( 0.20) ( 0.35)
------- ------- -------- -------
Net asset value, end of period ........................................ $ 11.69 $ 12.89 $ 9.89 $ 11.17
======= ======= ======== =======
Total Return(a) ....................................................... 1.81% 32.71% ( 9.65%) 16.94%
Ratios/Supplemental Data:
Ratios to average net assets:
Expenses ............................................................. 2.50% 2.03% 2.00% 2.00%
Expenses excluding indirectly paid expenses .......................... N/A N/A N/A N/A
Expenses excluding fee waivers & expense reimbursements .............. N/A 3.67% 7.77% 13.06%
Net investment income (loss) ......................................... ( 0.69%) 1.49% 1.80% 0.86%
Portfolio turnover rate ............................................... 75% 134% 51% 13%
Average commissions rate paid per share ............................... N/A N/A N/A N/A
Net assets end of period (thousands) .................................. $10,859 $ 2,159 $ 1,519 $ 1,378
<CAPTION>
Class A Shares
-------------------
March 16, 1988
(Commencement of
Operations) to
September 30, 1988
-------------------
<S> <C>
Per Share Data:
Net asset value beginning of period ................................... $ 10.00
---------
Income from investment operations
Net investment income (loss) ......................................... 0.05
Net realized and unrealized gain (loss) on investments and foreign
currency related transactions ....................................... ( 0.28)
---------
Total from investment operations .................................... ( 0.23)
---------
Less distributions from:
Net investment income ................................................ 0
Net realized gain on investments ..................................... 0
---------
Total distributions ................................................. 0
---------
Net asset value, end of period ........................................ $ 9.77
=========
Total Return(a) ....................................................... ( 1.20%)
Ratios/Supplemental Data:
Ratios to average net assets:
Expenses ............................................................. 1.50%(b)
Expenses excluding indirectly paid expenses .......................... N/A
Expenses excluding fee waivers & expense reimbursements .............. 5.54%(b)
Net investment income (loss) ......................................... 1.42%(b)
Portfolio turnover rate ............................................... 19%
Average commissions rate paid per share ............................... N/A
Net assets end of period (thousands) .................................. $ 1,082
</TABLE>
- --------
(a) Excluding applicable sales charges.
(b) Annualized.
(c) Calculation based on average shares outstanding during the period.
(d) The Fund changed its fiscal year end from September 30 to October 31,
effective October 31, 1997.
12
<PAGE>
Evergreen Global Opportunities Fund
<TABLE>
<CAPTION>
Class B Shares
--------------------------------------------------------------------------------
Year Ended September 30,
One-Month ----------------------------------------------------------
Period Ended
October 31, 1997 (d) 1997 1996 1995 1994
--------------------- ---------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value beginning of period ........ $ 24.03 $ 23.92 $ 23.00 $ 19.20 $ 17.95
-------- --------- -------- ------- -------
Income from investment operations
Net investment loss ....................... ( 0.06) ( 0.32)(c) ( 0.21) ( 0.25) ( 0.15)
Net realized and unrealized gain (loss)
on investments and foreign currency
related transactions ..................... ( 1.28) 1.68 1.13 4.05 1.56
---------- --------- -------- ------- -------
Total from investment operations ......... ( 1.34) 1.36 0.92 3.80 1.41
---------- --------- -------- ------- -------
Less distributions from:
Net realized gain on investments .......... 0 ( 1.25) 0 0 ( 0.16)
---------- --------- -------- ------- -------
Total distributions ...................... 0 ( 1.25) 0 0 ( 0.16)
---------- --------- -------- ------- -------
Net asset value, end of period ............. $ 22.69 $ 24.03 $ 23.92 $ 23.00 $ 19.20
========== ========= ======== ======= =======
Total Return(a) ............................ ( 5.58 %) 6.14 % 4.00 % 19.79% 7.93%
Ratios/Supplemental Data:
Ratios to average net assets:
Expenses .................................. 2.62 %(b) 2.46 % 2.40 % 2.58% 2.83%
Expenses excluding indirectly paid
expenses ................................. 2.61 %(b) 2.44 % 2.38 % 2.56% N/A
Net investment loss ....................... ( 2.15 %)(b) ( 1.45 %) ( 1.37 %) ( 1.59%) ( 1.61%)
Portfolio turnover rate .................... 7% 72% 67% 35% 32%
Average commissions rate paid per
share ..................................... $ 0.0019 $ 0.0066 $ 0.0079 N/A N/A
Net assets end of period (thousands) ....... $ 216,471 $ 238,936 $ 385,839 $238,320 $131,695
<CAPTION>
Class B Shares
--------------------
February 1, 1993
(date of Initial
Public Offering) to
September 30, 1993
--------------------
<S> <C>
Per Share Data:
Net asset value beginning of period ........ $ 14.04
----------
Income from investment operations
Net investment loss ....................... ( 0.04)
Net realized and unrealized gain (loss)
on investments and foreign currency
related transactions ..................... 3.95
----------
Total from investment operations ......... 3.91
----------
Less distributions from:
Net realized gain on investments .......... 0
----------
Total distributions ...................... 0
----------
Net asset value, end of period ............. $ 17.95
==========
Total Return(a) ............................ 27.85%
Ratios/Supplemental Data:
Ratios to average net assets:
Expenses .................................. 3.35%(b)
Expenses excluding indirectly paid
expenses ................................. N/A
Net investment loss ....................... ( 1.86%)(b)
Portfolio turnover rate .................... 64%
Average commissions rate paid per
share ..................................... N/A
Net assets end of period (thousands) ....... $ 15,534
</TABLE>
<TABLE>
<CAPTION>
Class C Shares
----------------------------------------------------------------------------
Year Ended September 30,
One-Month ------------------------------------------------------
Period Ended
October 31, 1997 (d) 1997 1996 1995 1994
--------------------- ---------------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Per Share Data:
Net asset value beginning of period ........... $ 24.07 $ 23.97 $ 23.04 $ 19.26 $ 17.99
-------- --------- -------- ------- -------
Income from investment operations
Net investment loss .......................... ( 0.07) ( 0.33)(c) ( 0.24) ( 0.27) ( 0.15)
Net realized and unrealized gain (loss) on
investments and foreign currency
related transactions ........................ ( 1.27) 1.68 1.17 4.05 1.58
---------- --------- -------- ------- -------
Total from investment operations ............ ( 1.34) 1.35 0.93 3.78 1.43
---------- --------- -------- ------- -------
Less distributions from:
Net realized gain on investments ............. 0 ( 1.25) 0 0 ( 0.16)
---------- --------- -------- ------- -------
Total distributions ......................... 0 ( 1.25) 0 0 ( 0.16)
---------- --------- -------- ------- -------
Net asset value, end of period ................ $ 22.73 $ 24.07 $ 23.97 $ 23.04 $ 19.26
========== ========= ======== ======= =======
Total Return(a) ............................... ( 5.57 %) 6.08 % 4.04 % 19.63% 8.02%
Ratios/Supplemental Data:
Ratios to average net assets:
Expenses ..................................... 2.62 %(b) 2.45 % 2.40 % 2.58% 2.85%
Expenses excluding indirectly paid
expenses .................................... 2.61 %(b) 2.43 % 2.38 % 2.56% N/A
Net investment loss .......................... ( 2.15 %)(b) ( 1.48 %) ( 1.38 %) ( 1.59%) ( 1.62%)
Portfolio turnover rate ....................... 7% 72% 67% 35% 32%
Average commissions rate paid per share ....... $ 0.0019 $ 0.0066 $ 0.0079 N/A N/A
Net assets end of period (thousands) .......... $ 43,869 $ 49,524 $ 124,549 $86,339 $50,535
<CAPTION>
Class C Shares
--------------------
February 1, 1993
(date of Initial
Public Offering) to
September 30, 1993
--------------------
<S> <C>
Per Share Data:
Net asset value beginning of period ........... $ 14.04
----------
Income from investment operations
Net investment loss .......................... ( 0.04)
Net realized and unrealized gain (loss) on
investments and foreign currency
related transactions ........................ 3.99
----------
Total from investment operations ............ 3.95
----------
Less distributions from:
Net realized gain on investments ............. 0
----------
Total distributions ......................... 0
----------
Net asset value, end of period ................ $ 17.99
==========
Total Return(a) ............................... 28.13%
Ratios/Supplemental Data:
Ratios to average net assets:
Expenses ..................................... 3.04%(b)
Expenses excluding indirectly paid
expenses .................................... N/A
Net investment loss .......................... ( 1.55%)(b)
Portfolio turnover rate ....................... 64%
Average commissions rate paid per share ....... N/A
Net assets end of period (thousands) .......... $ 6,217
</TABLE>
- --------
(a) Excluding applicable sales charges.
(b) Annualized.
(c) Calculation based on average shares outstanding during the period.
(d) The Fund changed its fiscal year end from September 30 to October 31,
effective October 31, 1997.
13
<PAGE>
Evergreen International Growth Fund
(formerly Keystone International Fund Inc.)
<TABLE>
<CAPTION>
Class B Shares
--------------------------------------
Year Ended October 31,
--------------------------------------
1997 1996 1995
------------ ------------ ------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of year .............................................. $ 7.69 $ 7.11 $ 7.77
-------- -------- -------
Income from investment operations
Net investment income (loss) .................................................. (0.05) (0.02) 0.07
Net realized and unrealized gain (loss) on investments, futures and foreign
currency related transactions ................................................ 1.27 0.75 0.05
-------- -------- -------
Total from investment operations ............................................. 1.22 0.73 0.12
-------- -------- -------
Less distributions from:
Net investment income ......................................................... 0 (0.09) (0.04)
In excess of net investment income ............................................ (0.10) (0.01) 0
Net realized gains on investments, futures and foreign currency related
transactions ................................................................. (0.16) (0.05) (0.74)
-------- -------- --------
Total distributions .......................................................... (0.26) (0.15) (0.78)
-------- -------- --------
Net asset value, end of year ................................................... $ 8.65 $ 7.69 $ 7.11
======== ======== ========
Total Return(a) ................................................................ 15.69 % 10.47 % 2.19%
Ratios & Supplemental Data:
Ratios to average net assets:
Total expenses ................................................................ 2.39 % 2.43 % 2.57%
Total expenses excluding indirectly paid expenses ............................. 2.38 % 2.42 % 2.58%
Net investment income (loss) .................................................. (0.49 %) (0.21 %) 0.88%
Portfolio turnover rate ........................................................ 101% 52% 76%
Average commission rate paid per share ......................................... $ 0.0010 $ 0.0011 N/A
Net assets end of year (thousands) ............................................. $ 151,806 $ 147,911 $128,674
<CAPTION>
Class B Shares
---------------------
One Month
Ended
October 31, 1994 (c)
---------------------
<S> <C>
Per Share Data:
Net asset value beginning of year .............................................. $ 7.67
----------
Income from investment operations
Net investment income (loss) .................................................. 0
Net realized and unrealized gain (loss) on investments, futures and foreign
currency related transactions ................................................ 0.10
----------
Total from investment operations ............................................. 0.10
----------
Less distributions from:
Net investment income ......................................................... 0
In excess of net investment income ............................................ 0
Net realized gains on investments, futures and foreign currency related
transactions ................................................................. 0
----------
Total distributions .......................................................... 0
----------
Net asset value, end of year ................................................... $ 7.77
==========
Total Return(a) ................................................................ 1.30%
Ratios & Supplemental Data:
Ratios to average net assets:
Total expenses ................................................................ 2.52%(b)
Total expenses excluding indirectly paid expenses ............................. N/A
Net investment income (loss) .................................................. (0.20%)(b)
Portfolio turnover rate ........................................................ 2%
Average commission rate paid per share ......................................... N/A
Net assets end of year (thousands) ............................................. $ 157,929
</TABLE>
<TABLE>
<CAPTION>
Class B Shares
--------------------------------------
Year Ended September 30,
--------------------------------------
1994 (c) 1993 (c) 1992 (c)
------------ ------------ ------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of year ...................... $ 7.08 $ 6.01 $ 5.91
------- ------- -------
Income from investment operations
Net investment income (loss) .......................... 0 (0.03) (0.01)
Net realized and unrealized gain (loss) on
investments, futures and foreign currency related
transactions ......................................... 0.62 1.14 0.34
-------- ------- -------
Total from investment operations ..................... 0.62 1.11 0.33
-------- ------- -------
Less distributions from:
Net investment income ................................. (0.02) 0 0
In excess of net investment income .................... (0.01) (0.04) (0.23)
Net realized gains on investments, futures and
foreign currency related transactions ................ 0 0 0
-------- ------- -------
Total distributions .................................. (0.03) (0.04) (0.23)
-------- ------- -------
Net asset value, end of year ........................... $ 7.67 $ 7.08 $ 6.01
======== ======= =======
Total Return(a) ........................................ 8.75% 18.59% 5.78%
Ratios & Supplemental Data:
Ratios to average net assets:
Total expenses ........................................ 2.54% 2.94% 3.41%
Total expenses excluding indirectly paid expenses ..... N/A N/A N/A
Net investment income (loss) .......................... 0.01% (0.46%) (0.09%)
Portfolio turnover rate ................................ 121% 68% 74%
Average commission rate paid per share ................. N/A N/A N/A
Net assets end of year (thousands) ..................... $154,529 $111,752 $64,135
<CAPTION>
Class B Shares
-----------------------------------------------------
Year Ended September 30,
-----------------------------------------------------
1991 1990 1989 1988
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
Per Share Data:
Net asset value beginning of year ...................... $ 5.35 $ 7.51 $ 6.66 $ 9.53
------- --------- ------- --------
Income from investment operations
Net investment income (loss) .......................... (0.01) ( 0.07) (0.14) 0.03
Net realized and unrealized gain (loss) on
investments, futures and foreign currency related
transactions ......................................... 0.83 ( 1.74) 1.06 ( 1.60)
------- --------- ------- --------
Total from investment operations ..................... 0.82 ( 1.81) 0.92 ( 1.57)
------- --------- ------- --------
Less distributions from:
Net investment income ................................. 0 0 (0.07) ( 0.08)
In excess of net investment income .................... (0.03) 0 0 0
Net realized gains on investments, futures and
foreign currency related transactions ................ (0.23) ( 0.35) 0 ( 1.22)
------- --------- ------- --------
Total distributions .................................. (0.26) ( 0.35) (0.07) ( 1.30)
------- --------- ------- --------
Net asset value, end of year ........................... $ 5.91 $ 5.35 $ 7.51 $ 6.66
======= ========= ======= ========
Total Return(a) ........................................ 15.59% (25.12%) 13.55% (15.55%)
Ratios & Supplemental Data:
Ratios to average net assets:
Total expenses ........................................ 3.14% 2.92% 2.65% 2.04%
Total expenses excluding indirectly paid expenses ..... N/A N/A N/A N/A
Net investment income (loss) .......................... (0.07%) ( 0.51%) (0.79%) 0.33%
Portfolio turnover rate ................................ 85% 42% 42% 60%
Average commission rate paid per share ................. N/A N/A N/A N/A
Net assets end of year (thousands) ..................... $72,923 $ 73,768 $121,047 $115,712
</TABLE>
- --------
(a) Excluding applicable sales charges.
(b) Annualized.
(c) Calculation based on average shares outstanding.
14
<PAGE>
Evergreen Precious Metals Fund
(formerly Keystone Precious Metals Holdings, Inc.)
<TABLE>
<CAPTION>
Class B Shares
---------------------------------
Year Ended
--------------
Eight-Month
Period Ended Feb. 28,
Oct. 31, 1997 (d) 1997
------------------ --------------
<S> <C> <C>
Per Share Data:
Net asset value beginning of period ............................. $ 23.94 $ 26.35
------------- ---------
Income from investment operations (b):
Net investment income (loss) ................................... ( 0.14) ( 0.26)
Net realized and unrealized gain (losses) on investments and
foreign currency related transactions ......................... ( 7.93) ( 1.16)
------------- ---------
Total from investment operations .............................. ( 8.07) ( 1.42)
------------- ---------
Less distributions:
Dividends from net investment income ........................... 0 0
Distributions in excess of net investment income ............... 0 0
Distributions from realized capital gains ...................... 0 ( 0.99)
------------- ---------
Total distributions ........................................... 0 ( 0.99)
------------- ---------
Net asset value, end of period .................................. $ 15.87 $ 23.94
============= =========
Total Return(a) ................................................. (33.71 %) ( 5.16 %)
Ratios/Supplemental Data:
Ratios to average net assets:
Total Expenses ................................................. 2.48 %(c) 2.33 %
Total Expenses excluding indirectly paid expenses .............. 2.48 %(c) 2.31 %
Net investment income (loss) ................................... ( 1.04 %)(c) ( 1.08 %)
Portfolio turnover rate ......................................... 19% 41%
Average commission rate paid .................................... $ 0.02672 $ 0.01636
Net assets end of period (thousands) ............................ $ 111,173 $ 190,108
<CAPTION>
Class B Shares
----------------------------------------
Year Ended
----------------------------------------
Feb. 29, Feb. 28, Feb. 28,
1996 1995 1994
------------ ------------- -------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of period ............................. $ 19.30 $ 25.09 $ 14.38
------- -------- --------
Income from investment operations (b):
Net investment income (loss) ................................... ( 0.25) ( 0.13) ( 0.17)
Net realized and unrealized gain (losses) on investments and
foreign currency related transactions ......................... 7.30 ( 5.54) 10.88
------- -------- --------
Total from investment operations .............................. 7.05 ( 5.67) (10.71)
------- -------- --------
Less distributions:
Dividends from net investment income ........................... 0 ( 0.12) 0
Distributions in excess of net investment income ............... 0 0 0
Distributions from realized capital gains ...................... 0 0 0
------- -------- --------
Total distributions ........................................... 0 ( 0.12) 0
------- -------- --------
Net asset value, end of period .................................. $ 26.35 $ 19.30 $ 25.09
======= ======== ========
Total Return(a) ................................................. 36.53% (22.70%) 74.48%
Ratios/Supplemental Data:
Ratios to average net assets:
Total Expenses ................................................. 2.28% 2.33% 2.34%
Total Expenses excluding indirectly paid expenses .............. 2.26% N/A N/A
Net investment income (loss) ................................... ( 1.08%) ( 0.54%) ( 0.75%)
Portfolio turnover rate ......................................... 39% 75% 73%
Average commission rate paid .................................... N/A N/A N/A
Net assets end of period (thousands) ............................ $217,270 $171,193 $200,489
</TABLE>
<TABLE>
<CAPTION>
Class B Shares
-------------------------
Year Ended
-------------------------
Feb. 28, Feb. 29,
1993 1992
------------ ------------
<S> <C> <C>
Per Share Data:
Net asset value beginning of period ............................. $ 15.37 $ 14.22
------- -------
Income from investment operations (b):
Net investment income (loss) ................................... ( 0.12) ( 0.02)
Net realized and unrealized gain (losses) on investments and
foreign currency related transactions ......................... ( 0.76) 1.30
------- -------
Total from investment operations .............................. ( 0.88) 1.28
------- -------
Less distributions:
Dividends from net investment income ........................... 0 0
Distributions in excess of net investment income ............... ( 0.11) ( 0.13)
Distributions from realized capital gains ...................... 0 0
------- -------
Total distributions ........................................... ( 0.11) ( 0.13)
------- -------
Net asset value, end of period .................................. $ 14.38 $ 15.37
======= =======
Total Return(a) ................................................. ( 5.74%) 9.07%
Ratios/Supplemental Data:
Ratios to average net assets:
Total Expenses ................................................. 2.83% 2.70%
Total Expenses excluding indirectly paid expenses .............. N/A N/A
Net investment income (loss) ................................... ( 0.86%) ( 0.14%)
Portfolio turnover rate ......................................... 58% 53%
Average commission rate paid .................................... N/A N/A
Net assets end of period (thousands) ............................ $114,364 $131,356
<CAPTION>
Class B Shares
-----------------------------------------------------
Year Ended
-----------------------------------------------------
Feb. 28, Feb. 28, Feb. 28, Feb. 29,
1991 1990 1989 1988
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Per Share Data:
Net asset value beginning of period ............................. $ 19.15 $ 16.82 $ 15.50 $ 17.31
-------- ------- ------- -------
Income from investment operations (b):
Net investment income (loss) ................................... 0 0.06 0.05 ( 0.01)
Net realized and unrealized gain (losses) on investments and
foreign currency related transactions ......................... ( 4.61) 2.27 1.59 ( 0.17)
-------- ------- ------- -------
Total from investment operations .............................. ( 4.61) 2.33 1.64 ( 0.18)
-------- ------- ------- -------
Less distributions:
Dividends from net investment income ........................... ( 0.06) 0 ( 0.12) ( 0.41)
Distributions in excess of net investment income ............... ( 0.26) 0 0 0
Distributions from realized capital gains ...................... 0 0 ( 0.20) ( 1.22)
-------- -------- -------- -------
Total distributions ........................................... ( 0.32) 0 ( 0.32) ( 1.63)
-------- -------- -------- -------
Net asset value, end of period .................................. $ 14.22 $ 19.15 $ 16.82 $ 15.50
======== ======== ======== =======
Total Return(a) ................................................. (24.37%) 13.85% 10.64% ( 2.86%)
Ratios/Supplemental Data:
Ratios to average net assets:
Total Expenses ................................................. 2.76% 2.20% 1.68% 1.84%
Total Expenses excluding indirectly paid expenses .............. N/A N/A N/A N/A
Net investment income (loss) ................................... ( 0.02%) 0.32% 0.28% ( 0.05%)
Portfolio turnover rate ......................................... 68% 95% 82% 62%
Average commission rate paid .................................... N/A N/A N/A N/A
Net assets end of period (thousands) ............................ $150,200 $195,837 $222,079 $222,646
</TABLE>
- --------
(a) Excluding applicable sales charges.
(b) Calculation based on average shares outstanding.
(c) Annualized.
(d) The Fund changed its fiscal year end from February 28 to October 31,
effective October 31, 1997.
15
<PAGE>
Evergreen Latin America Fund
<TABLE>
<CAPTION>
Class A Shares
--------------
Year Ended
October 31,
-------------
1997
-------------
<S> <C>
Per Share Data:
Net asset value beginning of year ...................................................... $ 11.13
--------
Income (loss) from investment operations:
Net investment income ................................................................. 0.02
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ......................................................................... 2.10
--------
Total from investment operations ..................................................... 2.12
--------
Less distributions from:
Net investment income ................................................................. ( 0.10)
In excess of net investment income .................................................... 0
Net realized gain on investments ...................................................... 0
--------
Total distributions .................................................................. ( 0.10)
--------
Net asset value, end of year ........................................................... $ 13.15
========
Total Return+ .......................................................................... 19.2 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .............................................................................. 1.69 %
Expenses, excluding indirectly paid expenses .......................................... 1.68 %
Net investment income ................................................................. 0.20 %
Portfolio turnover rate ................................................................ 105%
Average commission rate per share ...................................................... $ .0002
Net assets end of year (thousands) ..................................................... $ 13,621
<CAPTION>
Class A Shares
---------------------------------------
Year Ended October 31,
---------------------------------------
1996 1995 1994
------------ -------------- -----------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of year ...................................................... $ 9.86 $ 10.55 $ 10.00
--------- --------- -------
Income (loss) from investment operations:
Net investment income ................................................................. 0.39 0.44 0.21
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ......................................................................... 1.24 ( 0.81) 0.50
--------- --------- -------
Total from investment operations ..................................................... 1.63 ( 0.37) 0.71
--------- --------- -------
Less distributions from:
Net investment income ................................................................. ( 0.31) ( 0.30) ( 0.10)
In excess of net investment income .................................................... ( 0.05) 0 ( 0.01)
Net realized gain on investments ...................................................... 0 ( 0.02) ( 0.05)
--------- --------- -------
Total distributions .................................................................. ( 0.36) ( 0.32) ( 0.16)
--------- --------- -------
Net asset value, end of year ........................................................... $ 11.13 $ 9.86 $ 10.55
========= ========= =======
Total Return+ .......................................................................... 16.7 % ( 3.4 %) 7.2 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .............................................................................. 1.83 % 1.86% 1.79%
Expenses, excluding indirectly paid expenses .......................................... 1.81 % 1.84% N/A
Net investment income ................................................................. 3.05 % 4.02% 2.45%
Portfolio turnover rate ................................................................ 112% 57% 104%
Average commission rate per share ...................................................... $ .0005 N/A N/A
Net assets end of year (thousands) ..................................................... $ 11,021 $ 14,333 $23,880
</TABLE>
<TABLE>
<CAPTION>
Class B Shares
--------------------------
Year Ended October 31,
--------------------------
1997 1996
------------- ------------
<S> <C> <C>
Per Share Data:
Net asset value beginning of year .................................................. $ 10.98 $ 9.76
-------- ---------
Income (loss) from investment operations:
Net investment income (loss) ...................................................... ( 0.08) 0.23
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ..................................................................... 2.09 1.30
-------- ---------
Total from investment operations ................................................. 2.01 1.53
-------- ---------
Less distributions from:
Net investment income ............................................................. ( 0.02) ( 0.27)
In excess of net investment income ................................................ ( 0.06) ( 0.04)
Net realized gain on investments .................................................. 0 0
-------- ---------
Total distributions .............................................................. ( 0.08) ( 0.31)
-------- ---------
Net asset value, end of year ....................................................... $ 12.91 $ 10.98
======== =========
Total Return+ ...................................................................... 18.4 % 15.8 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .......................................................................... 2.50 % 2.59 %
Expenses, excluding indirectly paid expenses ...................................... 2.49 % 2.58 %
Net investment income (loss) ...................................................... ( 0.51 %) 2.30 %
Portfolio turnover rate ............................................................ 105% 112%
Average commission rate per share .................................................. $ .0002 $ .0005
Net assets end of year (thousands) ................................................. $ 75,271 $ 79,026
<CAPTION>
Class B Shares
----------------------------
Year Ended October 31,
----------------------------
1995 1994
-------------- -------------
<S> <C> <C>
Per Share Data:
Net asset value beginning of year .................................................. $ 10.49 $ 10.00
--------- -------
Income (loss) from investment operations:
Net investment income (loss) ...................................................... 0.32 0.14
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ..................................................................... ( 0.75) 0.50
--------- -------
Total from investment operations ................................................. ( 0.43) 0.64
--------- -------
Less distributions from:
Net investment income ............................................................. ( 0.28) ( 0.09)
In excess of net investment income ................................................ 0 ( 0.01)
Net realized gain on investments .................................................. ( 0.02) ( 0.05)
--------- -------
Total distributions .............................................................. ( 0.30) ( 0.15)
--------- -------
Net asset value, end of year ....................................................... $ 9.76 $ 10.49
========= =======
Total Return+ ...................................................................... ( 4.0 %) 6.5 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .......................................................................... 2.61% 2.54%
Expenses, excluding indirectly paid expenses ...................................... 2.59% N/A
Net investment income (loss) ...................................................... 3.27% 1.70%
Portfolio turnover rate ............................................................ 57% 104%
Average commission rate per share .................................................. N/A N/A
Net assets end of year (thousands) ................................................. $ 97,165 $148,769
</TABLE>
- --------
+ Initial sales charge or contingent deferred sales charge is not reflected.
16
<PAGE>
Evergreen Latin America Fund
<TABLE>
<CAPTION>
Class C Shares
--------------
Year Ended
October 31,
-------------
1997
-------------
<S> <C>
Per Share Data:
Net asset value beginning of year ...................................................... $ 10.99
--------
Income (loss) from investment operations:
Net investment income (loss) .......................................................... ( 0.07)
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ......................................................................... 2.08
--------
Total from investment operations ..................................................... 2.01
--------
Less distributions from:
Net investment income ................................................................. 0
In excess of net investment income .................................................... ( 0.08)
Net realized gain on investments ...................................................... 0
--------
Total distributions .................................................................. ( 0.08)
--------
Net asset value, end of year ........................................................... $ 12.92
========
Total Return+ .......................................................................... 18.4 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .............................................................................. 2.47 %
Expenses, excluding indirectly paid expenses .......................................... 2.46 %
Net investment income (loss) .......................................................... ( 0.52 %)
Portfolio turnover rate ................................................................ 105%
Average commission rate per share ...................................................... $ .0002
Net assets end of year (thousands) ..................................................... $ 10,961
<CAPTION>
Class C Shares
---------------------------------------
Year Ended October 31,
---------------------------------------
1996 1995 1994
------------ -------------- -----------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of year ...................................................... $ 9.77 $ 10.50 $ 10.00
--------- --------- -------
Income (loss) from investment operations:
Net investment income (loss) .......................................................... 0.23 0.32 0.14
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ......................................................................... 1.30 ( 0.75) 0.51
--------- --------- -------
Total from investment operations ..................................................... 1.53 ( 0.43) 0.65
--------- --------- -------
Less distributions from:
Net investment income ................................................................. ( 0.27) ( 0.28) ( 0.09)
In excess of net investment income .................................................... ( 0.04) 0 ( 0.01)
Net realized gain on investments ...................................................... 0 ( 0.02) ( 0.05)
--------- --------- -------
Total distributions .................................................................. ( 0.31) ( 0.30) ( 0.15)
--------- --------- -------
Net asset value, end of year ........................................................... $ 10.99 $ 9.77 $ 10.50
========= ========= =======
Total Return+ .......................................................................... 15.8 % ( 4.0 %) 6.6 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses .............................................................................. 2.59 % 2.61% 2.54%
Expenses, excluding indirectly paid expenses .......................................... 2.58 % 2.59% N/A
Net investment income (loss) .......................................................... 2.26 % 3.27% 1.74%
Portfolio turnover rate ................................................................ 112% 57% 104%
Average commission rate per share ...................................................... $ .0005 N/A N/A
Net assets end of year (thousands) ..................................................... $ 8,791 $ 11,242 $17,740
</TABLE>
- --------
+ Initial sales charge or contingent deferred sales charge is not reflected.
Evergreen Natural Resources Fund
<TABLE>
<CAPTION>
Class A Shares
---------------------
Seven-Month
Period Ended
October 31, 1997 (d)
---------------------
<S> <C>
Per Share Data:
Net asset value beginning of period ................................... $ 12.11
-------
Income from investment operations:
Net investment income (loss) ......................................... 0.03
Net realized and unrealized gain (loss) on investments and foreign
currency related transactions ....................................... 0.44
-------
Total from investment operations .................................... 0.47
-------
Net asset value end of period ......................................... $ 12.58
=======
Total Return(a) ....................................................... 3.88 %
Ratios/Supplemental Data:
Ratios to average net assets:
Total Expenses ....................................................... 2.01 %(c)
Total Expenses excluding indirectly paid expenses .................... 2.01 %(c)
Net investment income (loss) ......................................... 0.02 %(c)
Portfolio turnover rate ............................................... 13%
Average commission rate paid .......................................... $ 0.0057
Net assets, end of period (thousands) ................................. $ 3,890
<CAPTION>
Class A Shares
--------------------------------------------
Year Ended October 7, 1994
March 31, (Commencement of
-------------------------- Operations) to
1997 1996 March 31, 1995
------------- ------------ -----------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of period ................................... $ 10.74 $ 9.02 $ 10.00
-------- --------- ----------
Income from investment operations:
Net investment income (loss) ......................................... ( 0.04) ( 0.04) 0(b)
Net realized and unrealized gain (loss) on investments and foreign
currency related transactions ....................................... 1.41 1.76 ( 0.98)
-------- --------- ----------
Total from investment operations .................................... 1.37 1.72 ( 0.98)
-------- --------- ----------
Net asset value end of period ......................................... $ 12.11 $ 10.74 $ 9.02
======== ========= ==========
Total Return(a) ....................................................... 12.76 % 19.07 % ( 9.80%)
Ratios/Supplemental Data:
Ratios to average net assets:
Total Expenses ....................................................... 2.40 % 2.38 % 2.77%(c)
Total Expenses excluding indirectly paid expenses .................... 2.39 % 2.37 % N/A
Net investment income (loss) ......................................... ( 0.45 %) ( 0.41 %) ( 0.07%)(c)
Portfolio turnover rate ............................................... 39% 40% 13%
Average commission rate paid .......................................... $ 0.0023 $ 0.0025 N/A
Net assets, end of period (thousands) ................................. $ 4,462 $ 4,574 $ 4,890
</TABLE>
- --------
(a) Excluding applicable sales charges
(b) Represents less than $0.01 per share.
(c) Annualized.
(d) The Fund changed its fiscal year end from March 31 to October 31, effective
October 31, 1997.
17
<PAGE>
Evergreen Natural Resources Fund
<TABLE>
<CAPTION>
Class B Shares
---------------------
Seven-Month
Period Ended
October 31, 1997 (c)
---------------------
<S> <C>
Per Share Data:
Net asset value beginning of period ................................... $ 11.89
--------
Income from investment operations:
Net investment loss .................................................. ( 0.07)
Net realized and unrealized gain (loss) on investments and foreign
currency related transactions ....................................... 0.49
----------
Total from investment operations .................................... 0.42
----------
Net asset value end of period ......................................... $ 12.31
==========
Total Return(a) ....................................................... 3.53 %
Ratios/Supplemental Data:
Ratios to average net assets:
Total Expenses ....................................................... 2.79 %(b)
Total Expenses excluding indirectly paid expenses .................... 2.78 %(b)
Net investment loss .................................................. ( 0.77 %)(b)
Portfolio turnover rate ............................................... 13%
Average commission rate paid .......................................... $ 0.0057
Net assets, end of period (thousands) ................................. $ 15,333
<CAPTION>
Class B Shares
----------------------------------------------
Year Ended October 7, 1994
March 31, (Commencement of
-------------------------- Operations) to
1997 1996 March 31, 1995
------------- ------------ -------------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of period ................................... $ 10.62 $ 8.99 $ 10.00
-------- --------- -----------
Income from investment operations:
Net investment loss .................................................. ( 0.14) ( 0.13) ( 0.03)
Net realized and unrealized gain (loss) on investments and foreign
currency related transactions ....................................... 1.41 1.76 ( 0.98)
-------- --------- -----------
Total from investment operations .................................... 1.27 1.63 ( 1.01)
-------- --------- -----------
Net asset value end of period ......................................... $ 11.89 $ 10.62 $ 8.99
======== ========= ===========
Total Return(a) ....................................................... 11.96 % 18.13 % (10.10%)
Ratios/Supplemental Data:
Ratios to average net assets:
Total Expenses ....................................................... 3.16 % 3.13 % 3.55%(b)
Total Expenses excluding indirectly paid expenses .................... 3.15 % 3.12 % N/A
Net investment loss .................................................. ( 1.22 %) ( 1.16 %) ( 0.80%)(b)
Portfolio turnover rate ............................................... 39% 40% 13%
Average commission rate paid .......................................... $ 0.0023 $ 0.0025 N/A
Net assets, end of period (thousands) ................................. $ 17,208 $ 15,161 $ 4,688
</TABLE>
<TABLE>
<CAPTION>
Class C Shares
---------------------
Seven-Month
Period Ended
October 31, 1997 (c)
---------------------
<S> <C>
Per Share Data:
Net asset value beginning of period ................................... $ 11.89
--------
Income from investment operations:
Net investment loss .................................................. ( 0.13)
Net realized and unrealized gain (loss) on investments and foreign
currency related transactions ....................................... 0.55
----------
Total from investment operations .................................... 0.42
----------
Net asset value end of period ......................................... $ 12.31
==========
Total Return(a) ....................................................... 3.53 %
Ratios/Supplemental Data:
Ratios to average net assets:
Total Expenses ....................................................... 2.79 %(b)
Total Expenses excluding indirectly paid expenses .................... 2.79 %(b)
Net investment loss .................................................. ( 0.80 %)(b)
Portfolio turnover rate ............................................... 13%
Average commission rate paid .......................................... $ 0.0057
Net assets, end of period (thousands) ................................. $ 2,716
<CAPTION>
Class C Shares
----------------------------------------------
Year Ended October 7, 1994
March 31, (Commencement of
-------------------------- Operations) to
1997 1996 March 31, 1995
------------- ------------ -------------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of period ................................... $ 10.62 $ 8.99 $ 10.00
-------- --------- -----------
Income from investment operations:
Net investment loss .................................................. ( 0.10) ( 0.10) ( 0.03)
Net realized and unrealized gain (loss) on investments and foreign
currency related transactions ....................................... 1.37 1.73 ( 0.98)
-------- --------- -----------
Total from investment operations .................................... 1.27 1.63 ( 1.01)
-------- --------- -----------
Net asset value end of period ......................................... $ 11.89 $ 10.62 $ 8.99
======== ========= ===========
Total Return(a) ....................................................... 11.96 % 18.13 % (10.10%)
Ratios/Supplemental Data:
Ratios to average net assets:
Total Expenses ....................................................... 3.13 % 3.13 % 3.51%(b)
Total Expenses excluding indirectly paid expenses .................... 3.12 % 3.12 % N/A
Net investment loss .................................................. ( 1.27 %) ( 1.16 %) ( 0.93%)(b)
Portfolio turnover rate ............................................... 39% 40% 13%
Average commission rate paid .......................................... $ 0.0023 $ 0.0025 N/A
Net assets, end of period (thousands) ................................. $ 4,567 $ 2,023 $ 1,393
</TABLE>
- --------
(a) Excluding applicable sales charges.
(b) Annualized.
(c) The Fund changed its fiscal year end from March 31 to October 31,
effective October 31, 1997.
18
<PAGE>
- --------------------------------------------------------------------------------
DESCRIPTION OF THE FUNDS
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVES AND POLICIES
Each Fund's investment objectives are nonfundamental; as a result a Fund
may change its objectives without a shareholder vote. Each Fund has also
adopted certain fundamental investment policies which are mainly designed to
limit a Fund's exposure to risk. Each Fund's fundamental policies cannot be
changed without a shareholder vote. See the Statement of Additional Information
("SAI") for more information regarding a Fund's fundamental investment policies
or other related investment policies. There can be no assurance that a Fund's
investment objectives will be achieved.
In addition to the investment policies detailed below, each Fund may
employ certain additional investment strategies which are discussed in
"Investment Practices and Restrictions" below.
Evergreen Emerging Markets Growth Fund
The objective of Evergreen Emerging Markets Growth Fund is long-term
capital appreciation. In seeking this objective, the Fund invests in equity
securities of issuers located in emerging markets. The Fund is suitable for
aggressive investors interested in the investment opportunities offered by
securities of issuers located in emerging or developing markets and the
resulting potential for growth opportunities attributable to political change,
economic deregulation and liberalized trade policies.
The Fund invests primarily in a diversified portfolio of equity securities
of issuers located in countries with emerging markets. As used in this
Prospectus, an Emerging Market is any country (i) which is generally considered
to be an emerging or developing country by the International Bank for
Reconstruction and Development ("the World Bank") and the International Finance
Corporation (the "IFC") or by the United Nations, (ii) which is included in the
IFC Investable Index or the Morgan Stanley Capital International Emerging
Markets Index, or (iii) which has a gross national product per capita of $2,000
or less, in each case at the time of the Fund's investment. As a matter of
policy, the Fund will invest at least 65% of the value of its total assets in
equity securities of Emerging Market issuers.
A country will be considered to have an "emerging market" if it has
relatively low gross national product per capita compared to the world's major
economies and the potential for rapid economic growth. Countries with emerging
markets include those that have an emerging stock market (as defined by the
IFC), those with low-to middle income economies (according to the World Bank),
and those listed in World Bank publications as "developing". The Fund will
normally invest in at least six different countries, although it may invest all
of its assets in a single country. At the present time, the Fund has no
intention of investing all of its assets in a single country. The Fund focuses
on equity securities, but may also invest in other types of instruments,
including debt securities.
Evergreen International Equity Fund
The objective of Evergreen International Equity Fund is long-term capital
appreciation. The Fund invests primarily in equity securities of non-U.S.
issuers. The Fund provides investors with a vehicle to pursue investment
opportunities in countries outside the U.S. whose securities markets may
benefit from differing economic and political cycles.
The Fund invests primarily in foreign equity securities that Warburg,
Pincus Counsellors, Inc., the sub-adviser to the Fund, determines through
fundamental analysis to be undervalued compared to other securities in their
industries and countries. As a matter of policy, the Fund will invest at least
65% of the value of its total assets in equity securities of issuers located in
at least three countries outside of the United States, including emerging
markets as described above under "Evergreen Emerging Markets Growth Fund". See
"Special Risk Considerations".
Evergreen Global Leaders Fund
The investment objective of the Evergreen Global Leaders Fund is to
provide long-term capital growth. It will attempt to achieve its objective by
investing primarily in a diversified portfolio of U.S. and non-U.S. equity
securities of companies located in the world's major industrialized countries.
Under normal conditions at least 65% of
19
<PAGE>
the Fund's total assets will consist of global equity securities. The Fund will
make investments in no less than three countries, which may include the United
States. In addition to the United States, the countries in which the Fund may
invest include, but are not limited to, Australia, Austria, Belgium, Canada,
Denmark, Finland, France, Germany, Hong Kong, Italy, Japan, Malaysia,
Netherlands, New Zealand, Norway, Singapore, Spain, Sweden, Switzerland, and
the United Kingdom.
The Fund's investment adviser will attempt to screen the largest companies
in these and other major industrialized countries and cause the Fund to invest,
in the opinion of the Fund's investment adviser, in the 100 best based on
certain qualitative and quantitative criteria. Such companies may include those
with the highest return on equity and consistent earnings growth. They may also
include companies with an established market presence, or which operate in
industries or sectors that have, in the opinion of the Fund's investment
adviser, significant growth prospects. The criteria will be reviewed and
evaluated on an ongoing basis by the Fund's investment adviser.
In determining what constitutes a major industrialized country, the Fund's
investment adviser will look to classifications set forth in the Morgan Stanley
Capital International ("MSCI") Index and the various reports on this subject
disseminated by the World Bank. The Fund's investment adviser will utilize a
series of weighing techniques to insure adequate diversification by country and
industry and attempt to identify the largest companies in each market,
primarily by reference to the market capitalizations published in the MSCI
Index.
Although, as stated above, the Fund expects that investments will be made
in no less than three countries including the United States, the Fund may
invest more than 25% of its total assets in one country. To the extent that the
Fund invests more than 25% of its total assets in the securities of issuers
located in one country, the value of the Fund's shares may be subject to
greater fluctuations due to the lesser degree of diversification across
countries such a policy affords, and the fact that the securities markets of
certain countries may be subject to greater risks and volatility than that
which exists in the United States. See "Special Risk Considerations".
Evergreen Global Opportunities Fund
The investment objective of the Evergreen Global Opportunities Fund is
capital growth. In selecting its investments, the Fund attempts to identify
those companies within various countries and industries that have the best
opportunities for above-average increases in revenues and earnings and strong
prospects for continued revenue growth. In addition, the Fund seeks to identify
those countries and industries where economic and political factors, including
currency movements, are likely to produce above-average growth.
In pursuing its objective, the Fund may invest in securities of United
States ("U.S.") companies and of issuers located in certain foreign countries
with developed markets as well as those with emerging markets and the formerly
communist countries of Eastern Europe and the People's Republic of China. In
its investments in securities of issuers in the U.S. and other countries with
developed securities markets, the Fund seeks to achieve its objective by
investment in equity securities of small to medium sized companies (generally
under $1 billion in market capitalization) that are in a relatively early stage
of development. In its investments in foreign securities, the Fund seeks to
achieve its objective by investing in equity securities of issuers that are
managed and positioned to take advantage of opportunities for above average
increases in revenues and earnings and have strong prospects for continued
revenue growth. For this purpose, countries with emerging markets are generally
those where the per capita income is in the low middle ranges, as determined by
the World Bank.
Under ordinary circumstances, the Fund invests at least 65% of its assets
in securities of issuers located in at least three countries, one of which may
be the U.S. Under ordinary circumstances, the Fund invests at least 65% of its
assets in equity securities.
Some examples of the securities in which the Fund may invest are common
stocks, securities convertible into common stocks or having common stock
characteristics (consisting of rights, warrants and options), preferred stocks,
debt securities convertible into or exchangeable for preferred or common stock,
debt securities of the U.S. and any foreign governments, including their
political subdivisions, debt securities of any international agency (such as
the World Bank, Asian Development Bank or Inter-American Development Bank) and
time deposits with U.S. and foreign banks, and may hold cash and cash
equivalents as discussed below. The Fund's securities and other assets may be
denominated in U.S. currency or currency of any foreign nation. Except as
described above, there are no limitations on the type, size, operating history
or dividend paying record of companies or industries in which the
20
<PAGE>
Fund may invest. The Fund's securities may be traded in the over-the-counter
market as well as being listed on a foreign exchange. The primary investment
criterion used by the Fund in the selection of portfolio securities is that the
securities provide opportunities for capital growth.
Although the Fund intends to invest primarily in common stocks and
securities convertible into common stocks to achieve its objective of growth of
capital, the Fund may invest in any security listed above. For example, because
the market value of debt obligations can be expected to vary inversely with
changes in prevailing interest rates, investing in debt securities may provide
an opportunity for capital appreciation when interest rates are expected to
decline. In addition, the Fund may hold cash and invest in cash equivalents,
including time deposits, for temporary purposes in order to meet redemption
requests or for such periods of time as are necessary to evaluate market
conditions and other factors.
Evergreen International Growth Fund
The primary objective of Evergreen International Growth Fund is long-term
growth of capital. As a secondary objective, the Fund seeks modest income.
In pursuing its investment objectives, the Fund invests primarily in
equity securities issued by well-established, quality companies located in
countries with developed markets. The Fund may invest a portion of its assets
in equity securities of companies located in certain emerging markets countries
and the formerly communist countries of Eastern Europe. Countries with emerging
markets are generally those where the per capita income is in the low to middle
ranges, as determined by the World Bank.
Under normal circumstances, the Fund invests at least 65% of its total
assets in the securities of companies in at least three different countries
(other than the U.S.). For this purpose, a company is deemed to be located in a
particular country if (1) it is organized under the laws of that country; (2)
its principal securities trading market is in that country; (3) it derives at
least 50% of its revenues or profits from goods produced or sold, investments
made, or services performed in that country; or (4) it has at least 50% of its
assets located in that country.
Excluding repurchase agreements, the Fund currently follows a policy of
investing solely in securities of non-U.S. issuers.
While the Fund focuses on equity securities, it may invest a portion of
its assets in debt securities issued by public or private issuers with any
rating or that are unrated; provided, however, that the Fund may only invest up
to 10% of its total assets in debt securities rated below investment grade;
i.e., BB or lower by Standard & Poor's Ratings Group ("S&P") or Ba or lower by
Moody's Investor's Service ("Moody's").
The Fund may also invest in payment-in-kind ("PIK") securities issued by
public or private issuers, as well as preferred stocks, convertible securities,
and rights and warrants to purchase common stocks, when the Fund's investment
adviser determines that such investment is consistent with the Fund's
investment objectives.
Evergreen Precious Metals Fund
The primary investment objective of Evergreen Precious Metals Fund is to
provide shareholders with long-term capital appreciation and with protection of
the purchasing power of their capital. Obtaining current income is a secondary
objective.
Under normal circumstances, the Fund pursues its objectives by investing
at least 80% of its assets in common stocks of companies that are engaged in,
or which receive at least 50% of their revenue from other companies engaged in,
exploration, mining, processing or dealing in gold or other precious metals and
minerals, such as silver, platinum, palladium and diamonds. A company will be
considered to be engaged in a business or activity if at least 50% of the
company's assets, revenues or profits are derived from that business or
activity.
The Fund may invest a portion of its assets in domestic or foreign issuers
that operate in the Republic of South Africa, the principal location of the
known free-world gold ore reserves. The Fund generally makes such investments
by purchasing American Depositary Receipts, which are negotiable certificates
issued by a U.S. bank representing the right to receive securities of a foreign
issuer deposited in that bank or a foreign correspondent bank.
21
<PAGE>
While the Fund does not invest directly in precious metals and minerals,
it may invest up to 25% of its total assets in common or preferred stock of
wholly-owned subsidiaries that make such investments. Investments in metals and
minerals do not generate yields, but a subsidiary may realize capital gains
from the sale of metals and minerals and pay dividends to the Fund from such
gains. Precious Metals (Bermuda) Ltd. is the Fund's only subsidiary at present.
Evergreen Latin America Fund
The primary objective of the Evergreen Latin America Fund is long term
growth of capital through investments in equity securities of Latin America
(Mexico and countries in South and Central America).
Under normal circumstances, the Fund invests at least 65% of its assets in
securities of issuers in Latin America. The Fund normally intends to invest a
majority of its total assets in equity securities. The Fund ordinarily
maintains investments in at least three Latin American countries. For the
purposes of this prospectus, the Fund deems Latin America to include Argentina,
Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador,
Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay and
Venezuela. An issuer is deemed to be in Latin America if it is organized under
the laws of a country within that region; its principal securities trading
market is in that region; it derives at least 50% of its revenues or profits
from goods produced or sold, investments made, or services performed in that
region; or it has at least 50% of its assets located in the region.
The equity securities in which the Fund may invest include common stock,
preferred stock (convertible or non-convertible), warrants or rights
convertible into common or preferred stock and partly paid stock.
While the Fund focuses on equity securities, the Fund may invest a portion
of its assets in debt securities issued by Latin American or North American
public or private issuers with any rating or that are unrated. The Fund has
authority to invest up to 49% of its total assets in below investment grade
debt securities, i.e., BB or lower by S&P or Ba or lower by Moody's. The Fund
may also purchase Brady Bonds, which are bonds issued in exchange for
restructured sovereign debt of certain Latin American countries and
collateralized by U.S. government securities and denominated in U.S. dollars.
Evergreen Natural Resources Fund
The Evergreen Natural Resources Fund seeks long-term capital growth by
investing primarily in equity securities.
Under normal circumstances, the Fund invests at least 65% of its assets in
equity securities of foreign and domestic companies involved in the natural
resources and energy industries. For this purpose, companies involved in the
natural resources and energy industries include companies that, either directly
or through subsidiaries, are principally engaged in the discovery, development,
production, distribution, transportation or processing of natural resources or
energy; the development of technologies for the production or use of natural
resources or energy; the ownership or control of oil, gas or other mineral
leases, rights or royalty interests; or the provision of supplies or services
related to natural resources or energy. A company will be considered by the
Fund to be principally engaged in the natural resources and energy industries
if, at the time of the Fund's investment, at least 50% of the company's assets,
revenues or profits, either directly or through subsidiaries, are derived from
these industries.
While the Fund focuses on natural resources and energy stocks, it may also
invest a portion of its assets in securities of companies that (1) are expected
to benefit from infrastructure development and industrialization or changes in
the demand for or prices of industrial materials, or (2) are in other
industries.
In addition, under normal market conditions, the Fund invests at least 65%
of its assets in the securities of companies in at least three different
countries (including the U.S.). For this purpose, a company is deemed to be
located in a particular country if it is organized under the laws of that
country; its principal securities trading market is located in that country; it
derives at least 50% of its revenues or profits from goods produced or sold,
investments made, or services performed in that country; or it has at least 50%
of its assets located in that country.
The Fund may invest in the following types of equity securities: common
stock, preferred stock (convertible or non-convertible), warrants or rights
convertible into common or preferred stock, partly paid stock, and structured
equity-based securities. The Fund deems debt securities convertible into equity
securities to be equity securities.
22
<PAGE>
In addition to its equity investments, the Fund may also purchase debt
securities. The Fund has the authority to invest up to 25% of its total assets
in debt securities with a rating below investment grade, i.e, BB or lower by S&P
or Ba or lower by Moody's, or, if unrated, are, in the Fund's investment
adviser's judgement determined to be below investment grade. The Fund does not,
however, currently intend to invest more than 5% of its assets in such debt
securities.
INVESTMENT PRACTICES AND RESTRICTIONS
Defensive Investments. The Funds may invest without limitation in high quality
money market instruments, such as notes, commercial paper, certificates of
deposit or bankers' acceptances and other bank obligations, or U.S. government
securities and short-term obligations of foreign issuers denominated in U.S.
dollars and traded in the United States if, in the opinion of a Fund's
investment adviser or sub-adviser, market conditions warrant a temporary
defensive investment strategy.
Repurchase Agreements. The Funds may invest in repurchase agreements. A
- ---------------------
repurchase agreement is an agreement by which a Fund purchases a security
(usually U.S. government securities) for cash and obtains a simultaneous
commitment from the seller (usually a bank or broker/dealer) to repurchase the
security at an agreed-upon price and specified future date. The repurchase
price reflects an agreed-upon interest rate for the time period of the
agreement. The Fund's risk is the inability of the seller to pay the
agreed-upon price on the delivery date. However, this risk is tempered by the
ability of the Fund to sell the security in the open market in the case of a
default. In such a case, the Fund may incur costs in disposing of the security
which would increase Fund expenses. The Fund's investment adviser will monitor
the creditworthiness of the firms with which the Fund enters into repurchase
agreements.
Reverse Repurchase Agreements. The Funds may enter into reverse repurchase
- -----------------------------
agreements. A reverse repurchase agreement is an agreement by a Fund to sell a
security and repurchase it at a specified time and price. The Fund could lose
money if the market values of the securities it sold decline below their
repurchase prices. Reverse repurchase agreements may be considered a form of
borrowing, and, therefore, a form of leverage. Leverage may magnify gains or
losses of the Funds.
When-Issued, Delayed-Delivery and Forward Commitment Transactions. Each Fund
- -----------------------------------------------------------------
may enter into transactions whereby it commits to buying a security, but does
not pay for or take delivery of the security until some specified date in the
future. The value of these securities is subject to market fluctuation during
this period and no income accrues to a Fund until settlement. At the time of
settlement, a when-issued security may be valued at less than its purchase
price. When entering into these transactions, the Fund relies on the other
party to consummate the transaction; if the other party fails to do so, the
Fund may be disadvantaged.
Securities Lending. In order to generate additional income, the Funds (except
- ------------------
Evergreen Precious Metals Growth Fund) may lend portfolio securities on a
short-term or long-term basis to broker/dealers, banks and other institutional
borrowers of securities. The Funds will only enter into loan arrangements with
creditworthy borrowers and will receive collateral in the form of cash or U.S.
government securities equal to 100% of the value of the securities loaned.
Loans of securities by the Evergreen Global Opportunities Fund, Evergreen
International Growth Fund and Evergreen Natural Resources Fund will not exceed
15% of the value of each Fund's total assets. Loans of securities by Evergreen
Emerging Markets Growth Fund, Evergreen International Equity Fund and Evergreen
Global Leaders Fund will not exceed 30% of the value of each Fund's total
assets; and in the case of Evergreen Latin America Fund, loans of securities
will not exceed 25% of the value of the Fund's total assets. There is the risk
that when lending portfolio securities, the securities may not be available to
a Fund on a timely basis and a Fund may, therefore, lose the opportunity to
sell the securities at a desirable price. In addition, in the event that a
borrower of securities would file for bankruptcy or become insolvent,
disposition of the securities may be delayed pending court action.
Investing in Securities of Other Investment Companies. Each Fund may invest in
- -----------------------------------------------------
the securities of other investment companies. As a shareholder of another
investment company, the Fund would pay its portion of the other investment
company's expenses. These expenses would be in addition to the expenses that
the Fund currently bears concerning its own operations and may result in some
duplication of fees.
23
<PAGE>
Borrowing. The Funds may not borrow money except as a temporary measure to
- ---------
facilitate redemption requests or for extraordinary or emergency purposes. The
proceeds from borrowings may be used to facilitate redemption requests which
might otherwise require the untimely disposition of portfolio securities. The
specific limits applicable to borrowing by each Fund are set forth in the
Statement of Additional Information.
Illiquid Securities. Each Fund may invest up to 15% of its net assets in
- -------------------
illiquid securities and other securities which are not readily marketable.
Repurchase agreements with maturities longer than seven days will be included
for the purpose of the foregoing 15% limit. The inability of a Fund to dispose
of illiquid investments readily or at a reasonable price could impair the
Fund's ability to raise cash for redemptions or other purposes.
Restricted Securities. Each Fund may invest in restricted securities, including
- ---------------------
securities eligible for resale pursuant to Rule 144A under the Securities Act
of 1933 (the "1933 Act"). Generally, Rule 144A establishes a safe harbor from
the registration requirements of the 1933 Act for resale by large institutional
investors of securities not publicly traded in the U.S. Each Fund's investment
adviser determines the liquidity of Rule 144A securities according to
guidelines and procedures adopted by Evergreen International Trust's Board of
Trustees. The Board of Trustees monitors the investment adviser's application
of those guidelines and procedures. Securities eligible for resale pursuant to
Rule 144A, which the Fund's investment adviser has determined to be liquid or
readily marketable, are not subject to the 15% limit on illiquid securities.
Options and Futures. The Funds may engage in options and futures transactions.
- -------------------
Options and futures transactions are intended to enable a Fund to manage
market, interest rate or exchange rate risk. The Funds do not use these
transactions for speculation or leverage.
The Funds may attempt to hedge all or a portion of their portfolios
through the purchase of both put and call options on their portfolio securities
and listed put options on financial futures contracts for portfolio securities.
The Funds may also purchase call options on financial futures contracts. The
Funds may write covered call options on their portfolio securities to attempt
to increase their current income. The Funds will maintain their positions in
securities, option rights, and segregated cash subject to puts and calls until
the options are exercised, closed, or have expired. An option position may be
closed out only on an exchange which provides a secondary market for an option
of the same series.
The Funds may write (i.e., sell) covered call and put options. By writing
a call option, a Fund becomes obligated during the term of the option to
deliver the securities underlying the option upon payment of the exercise
price. By writing a put option, a Fund becomes obligated during the term of the
option to purchase the securities underlying the option at the exercise price
if the option is exercised. The Funds also may write straddles (combinations of
covered puts and calls on the same underlying security). The Funds may only
write "covered" options. This means that so long as a Fund is obligated as the
writer of a call option, it will own the underlying securities subject to the
option or, in the case of call options on U.S. Treasury bills, the Fund might
own substantially similar U.S. Treasury bills. A Fund will be considered
"covered" with respect to a put option it writes if, so long as it is obligated
as the writer of the put option, it deposits and maintains with its custodian
in a segregated account liquid assets having a value equal to or greater than
the exercise price of the option.
The principal reason for writing call or put options is to obtain, through
a receipt of premiums, a greater current return than would be realized on the
underlying securities alone. The Funds receive a premium from writing a call or
put option which they retain whether or not the option is exercised. By writing
a call option, the Funds might lose the potential for gain on the underlying
security while the option is open, and by writing a put option the Funds might
become obligated to purchase the underlying securities for more than their
current market price upon exercise.
A futures contract is a firm commitment by two parties: the seller, who
agrees to make delivery of the specific type of instrument called for in the
contract ("going short"), and the buyer, who agrees to take delivery of the
instrument ("going long") at a certain time in the future. Financial futures
contracts call for the delivery of particular debt instruments issued or
guaranteed by the U.S. Treasury or by specified agencies or instrumentalities
of the U.S. government. If a Fund enters into financial futures contracts
directly to hedge its holdings of fixed income securities, it would enter into
contracts to deliver securities at an undetermined price (i.e., "go short") to
protect itself against the possibility that the prices of its fixed income
securities may decline during the Fund's anticipated holding period. A Fund
would agree to purchase securities in the future at a predetermined price
(i.e., "go long") to hedge against a decline in market interest rates.
24
<PAGE>
The Funds may also enter into currency and other financial futures
contracts and write options on such contracts. The Funds intend to enter into
such contracts and related options for hedging purposes. The Funds will enter
into futures on securities, currencies, or (other than Evergreen Global Leaders
Fund) index-based futures contracts in order to hedge against changes in
interest or exchange rates or securities prices. A futures contract on
securities or currencies is an agreement to buy or sell securities or
currencies during a designated month at whatever price exists at that time. A
futures contract on a securities index does not involve the actual delivery of
securities, but merely requires the payment of a cash settlement based on
changes in the securities index. The Funds do not make payment or deliver
securities upon entering into a futures contract. Instead, they put down a
margin deposit, which is adjusted to reflect changes in the value of the
contract and which remains in effect until the contract is terminated.
The Funds may sell or purchase currency and other financial futures
contracts. When a futures contract is sold by a Fund, the profit on the
contract will tend to rise when the value of the underlying securities or
currencies declines and to fall when the value of such securities or currencies
increases. Thus, the Funds sell futures contracts in order to offset a possible
decline in the profit on their securities or currencies. If a futures contract
is purchased by a Fund, the value of the contract will tend to rise when the
value of the underlying securities or currencies increases and to fall when the
value of such securities or currencies declines.
The Funds may enter into closing purchase and sale transactions in order
to terminate a futures contract and may buy or sell put and call options for
the purpose of closing out their options positions. The Funds' ability to enter
into closing transactions depends on the development and maintenance of a
liquid secondary market. There is no assurance that a liquid secondary market
will exist for any particular contract or at any particular time. As a result,
there can be no assurance that the Funds will be able to enter into an
offsetting transaction with respect to a particular contract at a particular
time. If the Funds are not able to enter into an offsetting transaction, the
Funds will continue to be required to maintain the margin deposits on the
contract and to complete the contract according to its terms, in which case
they would continue to bear market risk on the transaction.
Risk Characteristics of Options and Futures. Although options and futures
- -------------------------------------------
transactions are intended to enable the Funds to manage market, exchange, or
interest rate risks, these investment devices can be highly volatile, and the
Funds' use of them can result in poorer performance (i.e., the Funds' returns
may be reduced). The Funds' attempt to use such investment devices for hedging
purposes may not be successful. Successful futures strategies require the
ability to predict future movements in securities prices, interest rates and
other economic factors. When the Funds use financial futures contracts and
options on financial futures contracts as hedging devices, there is a risk that
the prices of the securities subject to the financial futures contracts and
options on financial futures contracts may not correlate perfectly with the
prices of the securities in the Funds' portfolios. This may cause the financial
futures contracts and any related options to react to market changes
differently than the portfolio securities. In addition, a Fund's investment
adviser could be incorrect in its expectations and forecasts about the
direction or extent of market factors, such as interest rates, securities price
movements, and other economic factors. Even if a Fund's investment adviser
correctly predicts interest rate movements, a hedge could be unsuccessful if
changes in the value of a Fund's futures position did not correspond to changes
in the value of its investments. In these events, the Fund may lose money on
the financial futures contracts or the options on financial futures contracts.
It is not certain that a secondary market for positions in financial futures
contracts or for options on financial futures contracts will exist at all
times. Although a Fund's investment adviser will consider liquidity before
entering into financial futures contracts or options on financial futures
contracts, there is no assurance that a liquid secondary market on an exchange
will exist for any particular financial futures contract or option on a
financial futures contract at any particular time. The Funds' ability to
establish and close out financial futures contracts and options on financial
futures contract positions depends on this secondary market. If a Fund is
unable to close out its position due to disruptions in the market or lack of
liquidity, the Fund may lose money on the futures contract or option, and the
losses to the Fund could be significant.
Foreign Investments. Foreign securities may involve additional risks.
- -------------------
Specifically, they may be affected by the strength of foreign currencies
relative to the U.S. dollar, or by political or economic developments in
foreign countries. Accounting procedures and government supervision may be less
stringent than those applicable to U.S. companies. There may be less publicly
available information about a foreign company than about a U.S. company.
Foreign markets may be less liquid or more volatile than U.S. markets and may
offer less protection to investors. It may also be more difficult to enforce
contractual obligations abroad than would be the case in the U.S. because of
differences in the
25
<PAGE>
legal systems. Foreign securities may be subject to foreign taxes, which may
reduce yield, and may be less marketable than comparable U.S. securities. All
these factors are considered by the investment adviser of each Fund before
making any of these types of investments.
Foreign Currency Transactions. As discussed above, the Funds may invest in
- -----------------------------
securities of foreign issuers. When the Funds invest in foreign securities,
they usually will be denominated in foreign currencies, and the Funds
temporarily may hold funds in foreign currencies. Thus, the value of Fund
shares will be affected by changes in exchange rates.
As one way of managing exchange rate risk, in addition to entering into
currency futures contracts, the Funds may enter into forward currency exchange
contracts (agreements to purchase or sell currencies at a specified price and
date). The exchange rate for the transaction (the amount of currency the Funds
will deliver or receive when the contract is completed) is fixed when the Funds
enter into the contract. The Funds usually will enter into these contracts to
stabilize the U.S. dollar value of a security they have agreed to buy or sell.
The Funds intend to use these contracts to hedge the U.S. dollar value of a
security they already own, particularly if the Funds expect a decrease in the
value of the currency in which the foreign security is denominated. Although
the Funds will attempt to benefit from using forward contracts, the success of
their hedging strategy will depend on the investment adviser's ability to
predict accurately the future exchange rates between foreign currencies and the
U.S. dollar. The value of the Funds' investments denominated in foreign
currencies will depend on the relative strength of those currencies and the
U.S. dollar, and the Funds may be affected favorably or unfavorably by changes
in the exchange rates or exchange control regulations between foreign
currencies and the U.S. dollar. Changes in foreign currency exchange rates also
may affect the value of dividends and interest earned, gains and losses
realized on the sale of securities and net investment income and gains, if any,
to be distributed to shareholders by the Funds. Although the Funds do not
currently intend to do so, they may also purchase and sell options related to
foreign currencies. The Funds do not intend to enter into foreign currency
transactions for speculation or leverage.
Hedging/Cross Hedging. A cross hedge is accomplished by entering into a forward
- ---------------------
contract or other arrangement with respect to one foreign currency for the
purpose of hedging against a possible decline in the value of another foreign
currency in which certain of the Fund's portfolio instruments are denominated.
The Funds' investment advisers or sub-advisers may enter into a cross hedge,
rather than hedge directly, in instances where (i) the rates for forward
contracts, options, futures contract or options on futures contracts relating
to the currency in which the cross hedge is effected are more favorable than
rates for similar instruments denominated in the currency that is to be hedged
and (ii) there is a high degree of correlation between the two currencies with
respect to their movement against the U.S. dollar. Cross hedges may be effected
using the various hedging instruments described below. A cross hedge cannot
protect against exchange rate risks perfectly, and if a Fund's investment
adviser or sub-adviser is incorrect in its judgment of future exchange rate
relationships, the Fund could be in a less advantageous position than if such a
hedge had not been established.
SPECIAL RISK CONSIDERATIONS
Risk Characteristics Of Foreign Securities. Investing in securities of foreign
issuers generally involves more risk than investing in a portfolio consisting
solely of securities of domestic issuers for the following reasons: publicly
available information on issuers and securities may be scarce; many foreign
countries do not follow the same accounting, auditing, and financial reporting
standards as are used in the U.S.; market trading volumes may be smaller,
resulting in less liquidity and more price volatility compared to U.S.
securities of comparable quality; there may be less regulation of securities
trading and its participants; the possibility may exist for expropriation,
confiscatory taxation, nationalization, establishment of exchange controls,
political or social instability or negative diplomatic developments; and
dividend or interest withholding may be imposed at the source.
Fluctuations in foreign exchange rates impose an additional level of risk,
possibly affecting the value of the Fund's foreign investments and earnings, as
well as gains and losses realized through trades, and the unrealized
appreciation or depreciation of investments. A Fund may also incur costs when
it shifts assets from one country to another.
Investing in securities of issuers in emerging markets countries involves
exposure to economic systems that are generally less mature and political
systems that are generally less stable than those of developed countries. In
addition, investing in companies in emerging markets countries may also involve
exposure to national policies that
26
<PAGE>
may restrict investment by foreigners and undeveloped legal systems governing
private and foreign investments and private property. The typically small size
of the markets for securities issued by companies in emerging markets countries
and the possibility of a low or nonexistent volume of trading in those
securities may also result in a lack of liquidity and in price volatility of
those securities. Furthermore, investing in securities of companies in the
formerly communist countries of Eastern Europe and the People's Republic of
China involves additional risks to those associated with investments in
companies in non-formerly communist emerging markets countries. Specifically,
those countries could convert back to a single economic system, and the claims
of property owners prior to the expropriation by the communist regime could be
settled in favor of the former property owners, in which case the Portfolio
could lose its entire investment in those countries. These risks are carefully
considered by a Fund's investment adviser prior to the purchase of these
securities.
Fluctuations in foreign exchange rates impose an additional level of risk,
possibly affecting the value of the Fund's foreign investments and earnings, as
well as gains and losses realized through trades, and the unrealized
appreciation or depreciation of investments. The Fund may also incur costs when
it shifts assets from one country to another.
Emerging Markets. The economies of individual emerging countries may differ
- ----------------
favorably or unfavorably from the U.S. economy in such respects as growth of
gross domestic product, rate of inflation, currency depreciation, capital
reinvestment, resource self-sufficiency and balance of payments position.
Further, the economies of developing countries generally are heavily dependent
on international trade and, accordingly, have been, and may continue to be,
adversely affected by trade barriers, exchange controls, managed adjustments in
relative currency values and other protectionist measures imposed or negotiated
by the countries with which they trade. These economies also have been, and may
continue to be, adversely affected by economic conditions in the countries with
which they trade.
Prior governmental approval for foreign investments may be required under
certain circumstances in some emerging countries, and the extent of foreign
investment in certain debt securities and domestic companies may be subject to
limitation in other emerging countries. Foreign ownership limitations also may
be imposed by the charters of individual companies in emerging countries to
prevent, among other concerns, violation of foreign investment limitations.
Repatriation of investment income, capital and the proceeds of sales by
foreign investors may require governmental registration and/or approval in some
emerging countries. A Fund could be adversely affected by delays in, or a
refusal to grant, any required governmental registration or approval for such
repatriation. Any investment subject to such repatriation controls will be
considered illiquid if it appears reasonably likely that this process will take
more than seven days.
With respect to any emerging country, there is the possibility of
nationalization, expropriation or confiscatory taxation, political changes,
governmental regulation, social instability or diplomatic developments
(including war) which could affect adversely the economics of such countries or
the value of the Funds' investments in those countries. In addition, it may be
difficult to obtain and enforce a judgment in a court outside of the U.S.
Risk Characteristics of High Yield Bonds. Evergreen International Growth Fund,
- ----------------------------------------
Evergreen Latin America Fund and Evergreen Natural Resources Fund may invest in
high yield bonds. While investment in high yield bonds provides opportunities
to maximize return over time, investors should be aware of the following risks
associated with high yield bonds:
(1) High yield bonds are rated below investment grade, i.e., BB or lower
by S&P or Ba or lower by Moody's. Securities so rated are considered
predominantly speculative with respect to the ability of the issuer to meet
principal and interest payments.
(2) The lower ratings of these securities reflect a greater possibility
that adverse changes in the financial condition of the issuer or in general
economic conditions, or both, or an unanticipated rise in interest rates may
impair the ability of the issuer to make payments of interest and principal,
especially if the issuer is highly leveraged.
27
<PAGE>
Such issuer's ability to meet its debt obligations may also be adversely
affected by specific corporate developments or the issuer's inability to meet
specific projected business forecasts or the unavailability of additional
financing. Also, an economic downturn or an increase in interest rates may
increase the potential for default by the issuers of these securities.
(3) Their value may be more susceptible to real or perceived adverse
economic, company or industry conditions and publicity than is the case for
higher quality securities.
(4) Their value, like those of other fixed income securities, fluctuates
in response to changes in interest rates, generally rising when interest rates
decline and falling when interest rates rise. For example, if interest rates
increase after a fixed income security is purchased, the security, if sold
prior to maturity, may return less than its cost. The prices of
below-investment grade bonds, however, are generally less sensitive to interest
rate changes than the prices of higher-rated bonds, but are more sensitive to
adverse or positive economic changes or individual corporate developments.
(5) The secondary market for such securities may be less liquid at certain
times than the secondary market for higher quality debt securities, which may
adversely effect (1) the market price of the security, (2) a Fund's ability to
dispose of particular issues and (3) a Fund's ability to obtain accurate market
quotations for purposes of valuing its assets.
(6) Zero coupon bonds and PIKs involve additional risks. Zero coupon bonds
and PIKs do not require the periodic payment of interest. PIKs are debt
obligations that provide that the issuer may, at its option, pay interest on
such bonds in cash or in the form of additional debt obligations. Such
investments may experience greater fluctuation in value due to changes in
interest rates than debt obligations that pay interest currently. Even though
these investments do not pay current interest in cash, a Fund is, nonetheless,
required by tax laws to accrue interest income on such investments and to
distribute such amounts at least annually to shareholders. Thus, a Fund could
be required at times to liquidate investments in order to fulfill its intention
to distribute substantially all of its net income as dividends. A Fund will be
able to purchase additional income producing securities with cash used to make
such distributions, and its current income ultimately may be reduced as a
result.
The generous income sought by a Fund is ordinarily associated with
securities in the lower rating categories of the recognized rating agencies or
with securities that are unrated. Such securities are generally rated BB or
lower by S&P or Ba or lower by Moody's. The Funds may invest in securities that
are rated as low as D by S&P or C- by Moody's. The Funds may also invest in
unrated securities that, in the investment adviser's judgment, offer comparable
yields and risks as securities that are rated. It is possible for securities
rated D or C-, respectively, to have defaulted on payments of principal and/or
interest at the time of investment. The Statement of Additional Information
describes these rating categories. The Funds intend to invest in D rated debt
only in cases when, in the investment adviser's judgment, there is a distinct
prospect of improvement in the issuer's financial position as a result of the
completion of reorganization or otherwise.
The investment adviser considers the ratings of S&P and Moody's assigned
to various securities, but does not rely solely on these ratings because (1)
S&P and Moody's assigned ratings are based largely on historical financial data
and may not accurately reflect the current financial outlook of companies; and
(2) there can be large differences among the current financial conditions of
issuers within the same category.
- --------------------------------------------------------------------------------
ORGANIZATION AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
ORGANIZATION
Fund Structure. Each Fund is an investment pool, which invests shareholders'
money towards a specified goal. Each Fund is a diversified series of an
open-end management investment company called "Evergreen International Trust"
(the "Trust"). The Trust is a Delaware business trust organized on September
17, 1997.
Board of Trustees. The Trust is supervised by a Board of Trustees that is
- -----------------
responsible for representing the interests of shareholders. The Trustees meet
periodically throughout the year to oversee a Fund's activities, reviewing,
among other things, a Fund's performance and its contractual arrangements with
various service providers.
28
<PAGE>
Shareholder Rights. All shareholders of a given Class participate equally in
- ------------------
dividends and distributions from a Fund's assets and have equal liquidation and
other rights. Shareholders may exchange shares as described under "Exchanges,"
but will have no other preference, conversion, exchange or preemptive rights.
When issued and paid for, your shares will be fully paid and nonassessable.
Shares of each Fund are redeemable, transferable and freely assignable as
collateral. Each Fund may establish additional classes or series of shares.
The Funds do not hold annual shareholder meetings; a Fund may, however,
hold special meetings for such purposes as electing or removing Trustees,
changing fundamental policies and approving investment advisory agreements or
12b-1 plans. In addition, a Fund is prepared to assist shareholders in
communicating with one another for the purpose of convening a meeting to elect
trustees. If any matters are to be voted on by shareholders, each share owned
as of the record date for the meeting would be entitled to one vote for each
dollar of net asset value applicable to each share.
SERVICE PROVIDERS
Investment Adviser. The investment adviser to Evergreen Emerging Markets Growth
Fund and Evergreen International Equity Fund is the Capital Management Group of
First Union National Bank ("FUNB"), a subsidiary of First Union Corporation
("First Union"). First Union and FUNB are located at 201 South College Street,
Charlotte, North Carolina 28288-0630. First Union and its subsidiaries provide
a broad range of financial services to individuals and businesses throughout
the United States.
The investment adviser to Evergreen Global Leaders Fund is Evergreen Asset
Management Corp. ("Evergreen Asset"), which is a wholly-owned subsidiary of
First Union. Evergreen Asset, with its predecessors, has served as investment
adviser to certain Evergreen mutual funds since 1971.
The investment adviser to Evergreen Global Opportunities Fund, Evergreen
International Growth Fund, Evergreen Precious Metals Fund, Evergreen Latin
America Fund and Evergreen Natural Resources Fund is Keystone Investment
Management Company ("Keystone"). Keystone has provided investment advisory and
management services to investment companies and private accounts since it was
organized in 1932. Keystone is an indirect subsidiary of FUNB.
FUNB, along with Warburg, respectively, manages investments and supervises
the daily business affairs of Evergreen International Equity Fund and Evergreen
Emerging Markets Growth Fund. As compensation therefor, FUNB is entitled to
receive an annual fee from Evergreen International Equity Fund equal to: .82 of
1% of the first $20 million of average daily net assets; .79 of 1% of the next
$30 million of average daily net assets; .76 of 1% of the next $50 million of
average daily net assets; and .73 of 1% of average daily net assets in excess
of $100 million. From Evergreen Emerging Markets Growth Fund, FUNB is entitled
to receive an annual fee equal to: 1.50% of the first $100 million of average
daily net assets; 1.45% of the next $100 million of average daily net assets;
1.40% of the next $100 million of average daily net assets; and 1.35% of
average daily net assets in excess of $300 million.
As investment adviser to Evergreen Global Leaders Fund, Evergreen Asset
manages the Fund's investments, provides various administrative services and
supervises the Fund's daily business affairs, subject to the authority of the
Trustees. Evergreen Asset is entitled to receive a fee equal to .95 of 1% of
average daily net assets on an annual basis from Evergreen Global Leaders Fund.
Evergreen Global Opportunities Fund pays Keystone a fee, calculated on an
annual basis, equal to 1.00% of the first $200,000,000 of the average daily net
assets, plus 0.95% of the next $200,000,000, plus 0.85% of the next
$200,000,000, plus 0.75% of amounts over $600,000,000.
Evergreen International Growth Fund and Evergreen Latin America Fund pay
Keystone a fee, calculated on an annual basis, equal to 0.75% of the first
$200,000,000 of each Fund's average daily net assets, plus 0.65% of the next
$200,000,000, plus 0.55% of the next $200,000,000, plus 0.45% of amounts over
$600,000,000.
Evergreen Precious Metals Fund pays Keystone a fee, calculated on an
annual basis, equal to .75 of 1.00% of the first $100,000,000 of the average
daily net assets, plus .625 of 1.00% of the next $100,000,000, plus .50 of
1.00% of amounts over $200,000,000.
29
<PAGE>
Evergreen Natural Resources Fund pays Keystone a fee for its services at
the annual rate of 1.00% of the Fund's average daily net assets.
Portfolio Managers. The portfolio manager for Evergreen International Equity
- ------------------
Fund is David Francis, CFA. Mr. Francis joined First Union in 1994 as Managing
Director and Chief Investment Officer. Mr. Francis has over 20 years of equity
analysis and investment experience. He is responsible for directing the
institutional investment organization for the First Union Capital Management
Group. Mr. Francis joined First Union from Federated Investment Counseling, a
division of Federated Investors in Pittsburgh, PA, where he managed equities
for employee benefit and tax-exempt separate accounts and mutual funds since
1978.
The portfolio of the Evergreen Global Leaders Fund is managed by a
committee composed of portfolio management and analytical personnel employed by
Evergreen Asset. The members of this committee include Stephen A. Lieber, who
is Chairman and Co-Chief Executive Officer of Evergreen Asset, and Edwin D.
Miska, who is an analyst with Evergreen Asset. Mr. Lieber and Mr. Miska are
responsible for the day-to-day operations of the Fund. Mr. Lieber is the
founder of Evergreen Asset and has been associated with Evergreen Asset and its
predecessor since 1971. Mr. Miska has been a quantitative analyst with
Evergreen Asset and its predecessor since 1986.
The portfolio manager for the Evergreen Emerging Markets Growth Fund is
Gilman C. Gunn. He has also been the portfolio manager for the Evergreen
International Growth Fund since 1991. Mr. Gunn is currently Senior Vice
President and Chief Investment Officer -- International at Keystone. As head of
the International Team he has 24 years of experience. Prior to joining Keystone
in 1991, Mr. Gunn spent seven years in London heading Citibank's London-based
private client investment department and investment research for Paribas
Capital Markets. He spent two years in Kuwait as Advisor to the Kuwait
International Investment Company and also one year in Thailand. In addition,
Mr. Gunn managed an $800 million bond portfolio for the Chubb Corporation in
New York.
The portfolio managers of the Evergreen Global Opportunities Fund are
Gilman C. Gunn, Senior Vice President and Chief Investment Officer --
International at Keystone since 1991, together with J. Gary Craven, Antonio T.
Docal, Francis X. Claro, Eleanor H. Marsh and Liu-Er Chen.
J. Gary Craven, CFA, joined Keystone in 1996 and is currently a Senior
Vice President, Portfolio Manager and Chief Investment Officer for the Small
Company Stock team for Keystone. With 11 years of investment experience, Mr.
Craven is a specialist in small company growth management. Prior to joining
Keystone in 1996, Mr. Craven was a portfolio manager at Invista Capital
Management, Inc. since 1987.
Antonio Docal is a Vice President and Portfolio Manager at Keystone. Prior
to joining Keystone in 1994, Mr. Docal was Vice President of Docal Associates,
Inc., an import/export and trade company that he co-founded in Woodbridge, CT.
Mr. Docal also worked in the Mergers and Acquisitions Department for the Latin
America region at J.P. Morgan in New York.
Francis Claro, CFA, is a Vice President and Portfolio Manager at Keystone.
Prior to joining Keystone in 1994, he worked as an Investment Officer with the
Inter-American Investment Corporation in New York where he was responsible for
making private equity and debt investments in Argentina, Brazil, Peru and
Uruguay. Mr. Francis also served as a Senior Consultant for the Latin American
area of Price Waterhouse's International Consulting Practice conducting
acquisition work for Price Waterhouse's Central and Eastern European Practice
in London.
Eleanor H. Marsh is a Vice President and Portfolio Manager for the Asian
equity markets at Keystone. Prior to joining Keystone in 1994, Ms. Marsh spent
five years at S.G. Warburg Securities in Tokyo as a Senior Analyst covering
Japanese consumer goods and services companies.
Liu-Er Chen is a Vice President and Portfolio Manager for the Asian equity
markets and foreign pharmaceuticals companies at Keystone. Prior to joining
Keystone in 1995, Mr. Chen spent three years in the U.S. pharmaceuticals
industry at American Cyanamid, Wayne NJ, in the strategic planning area.
John Madden, CFA, has been the portfolio manager of Evergreen Precious
Metals Fund since 1995. He has also been the portfolio manager of Evergreen
Natural Resources Fund since the Fund's inception in 1994. Mr. Madden is a Vice
President and Senior Portfolio Manager at Keystone. Prior to joining Keystone
in 1994, Mr. Madden was a Vice President and Senior Investment Analyst at
Pioneering Management Corporation, where his responsibilities included covering
all metal industries and assisting in the management of Pioneer's gold fund. He
also
30
<PAGE>
served as a Vice President and Investment Analyst at Bank of Boston with
assignment as an economic forecaster for petroleum and other related
industries. Earlier he was a field geologist at Duncan R. Derry Ltd. as part of
a geological survey team in British Honduras. In addition, Mr. Madden worked at
U.S. Trust of New York as an Investment Analyst covering non-ferrous and
precious metals. Mr. Madden has over 29 years of investment experience.
Antonio T. Docal and Francis X. Claro have been co-portfolio managers for
the Evergreen Latin America Fund since 1996.
Mr. Docal is a Vice President and Portfolio Manager at Keystone. Prior to
joining Keystone in 1994, Mr. Docal was Vice President of Docal Associates,
Inc., an import/export and trade company that he co-founded in Woodbridge, CT.
Mr. Docal also worked in the Mergers and Acquisitions Department for the Latin
America region at J.P. Morgan in New York.
Francis Claro, CFA, is a Vice President and Portfolio Manager at Keystone.
Prior to joining Keystone in 1994, he worked as an Investment Officer with the
Inter-American Investment Corporation in New York where he was responsible for
making private equity and debt investments in Argentina, Brazil, Peru and
Uruguay. Mr. Francis also served as a Senior Consultant for the Latin American
area of Price Waterhouse's International Consulting Practice conducting
acquisition work for Price Waterhouse's Central and Eastern European Practice
in London.
SUB-ADVISERS
Evergreen Asset has entered into sub-advisory agreements with Lieber &
Company with respect to Evergreen Global Leaders Fund which provide that Lieber
& Company's research department and staff will furnish Evergreen Asset with
information, investment recommendations, advice and assistance, and will be
generally available for consultation on each Fund's portfolio. Lieber & Company
will be reimbursed by Evergreen Asset in connection with the rendering of
services on the basis of the direct and indirect costs of performing such
services. There is no additional charge to Evergreen Global Leaders Fund for
the services provided by Lieber & Company. It is contemplated that Lieber &
Company will, to the extent practicable, effect substantially all of the
portfolio transactions for the Fund on the New York and American Stock
Exchanges. The address of Lieber & Company is 2500 Westchester Avenue,
Purchase, New York 10577. Lieber & Company is an indirect, wholly-owned,
subsidiary of First Union.
Warburg, Pincus Counsellors, Inc. ("Warburg"), the sub-adviser to the
Evergreen International Equity Fund, was incorporated in 1970 and is located at
466 Lexington Avenue, New York, New York. Warburg is a professional investment
counselling firm which provides investment services to investment companies,
employee benefit plans, endowment funds, foundations and other institutions and
individuals, and has broad experience in advising international equity funds.
Warburg is a wholly owned subsidiary of Warburg, Pincus Counsellors G.P.
("Warburg G.P."), a New York general partnership, which itself is controlled by
Warburg, Pincus & Co. ("WP&Co."), also a New York general partnership. Lionel
I. Pincus, the managing partner of WP&Co., may be deemed to control both WP&Co.
and Warburg. Warburg G.P. has no business other than being a holding company of
Warburg and its subsidiaries. As of January 31, 1997, Warburg was managing
approximately $17.9 billion of assets, including approximately $10.7 billion of
investment company assets.
FUNB has agreed to pay Warburg, the subadviser to Evergreen International
Equity Fund, a fee equal to .55% of 1% of the average daily net assets of the
Fund on an annual basis.
Since August 1, 1995, Harbor Capital Management Company, Inc. ("Harbor
Capital"), located at 125 High Street, Boston, Massachusetts 02110, has served
as a consultant to Keystone with respect to Evergreen Precious Metals Fund and
its subsidiary pursuant to a Consultant Agreement. In accordance with the terms
of the Consultant Agreement, Harbor Capital provides Keystone with monthly
reports discussing the world's gold bullion markets and gold stock markets, and
advice regarding economic factors and trends in the precious metals sectors.
For its services, Harbor Capital receives from Keystone a fee at the
annual rate of 0.10% of the Fund's average daily net assets. The Fund has no
responsibility to pay Harbor Capital's fee.
The Consultant Agreement provides that it will continue for a period of
two years from August 1, 1995 and thereafter from year to year if the parties
thereto agree. The Consultant Agreement may be terminated by either party,
without penalty, on 60 days' written notice to the other party. Neither party
may assign the Consultant Agreement without the consent of the other party.
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<PAGE>
Keystone has entered into a Subinvestment Advisory Agreement in respect of
the Evergreen Natural Resources Fund with EquitiLink International Management
Limited ("EquitiLink") (the "Subinvestment Advisory Agreement"), having its
principal place of business at Union House, Union Street, St. Helier, Jersey,
Channel Islands. EquitiLink and its affiliates have provided advisory services
to various clients since 1981. Under the terms of the Subinvestment Advisory
Agreement, EquitiLink provides Keystone with investment research and advice. In
addition, subject to the supervision of the Trust's Board of Trustees and
Keystone, EquitiLink may provide investment supervision and furnish an
investment program for such assets of the Fund as Keystone may designate from
time to time.
EquitiLink receives a monthly fee equal to (1) 20% of Keystone's net fee
for such month for services rendered in a non-discretionary capacity, plus (2)
10% of Keystone's net fee for such month on that portion of the Fund's assets
for which EquitiLink provided services in a discretionary capacity.
Keystone has entered into a Subadvisory Agreement in respect of Evergreen
Emerging Markets Growth Fund with FUNB having its principal place of business
in Charlotte, North Carolina. As Subadviser, Keystone's research department and
staff will provide FUNB, the Fund's investment adviser, with information,
investment recommendations, advice and assistance on the Fund.
For its services as subadviser to Evergreen Emerging Markets Growth Fund,
Keystone receives from FUNB a fee equal to 1% of the first $100 million of
average daily net assets; .95 of 1% of the next $100 million of average daily
net assets; .90 of 1% of the next $100 million of average daily net assets; and
.85% of 1% of average daily net assets in excess of $300 million.
Administrator. Evergreen Investment Services, Inc. ("EIS") serves as
- -------------
administrator to Evergreen Emerging Markets Fund, Evergreen International
Equity Fund and Evergreen Global Leaders Fund, subject to the supervision and
control of the Trustees. EIS provides each Fund with facilities, equipment and
personnel. For its services as administrator, EIS is entitled to receive a fee
based on the aggregate average daily net assets of each Fund at a rate based on
the total assets of all the mutual funds advised by First Union subsidiaries.
The administration fee is calculated in accordance with the following schedule:
<TABLE>
<S> <C>
Administration Fee
- ------------------------
0.050% on the first $7 billion
0.035% on the next $3 billion
0.030% on the next $5 billion
0.020% on the next $10 billion
0.015% on the next $5 billion
0.010% on assets in excess of $30 billion
</TABLE>
EIS also provides facilities, equipment and personnel to Evergreen Global
Opportunities Fund, Evergreen International Growth Fund, Evergreen Precious
Metals Fund, Evergreen Latin America Fund and Evergreen Natural Resources Fund
on behalf of the Funds' investment adviser.
Transfer Agent and Dividend Disbursing Agent. Evergreen Service Company
- --------------------------------------------
("ESC"), 200 Berkeley Street, Boston, Massachusetts 02116, acts as each Fund's
transfer agent and dividend disbursing agent. ESC is an indirect, wholly-owned
subsidiary of First Union.
Custodian. State Street Bank and Trust Company, P.O. Box 9021, Boston,
- ---------
Massachusetts 02205-9827 acts as each Fund's custodian.
Principal Underwriter. Evergreen Distributor, Inc. ("EDI"), a subsidiary of The
- ---------------------
BISYS Group, Inc., located at 125 West 55th Street, New York, New York 10019,
is the principal underwriter of each Fund.
DISTRIBUTION PLANS AND AGREEMENTS
Distribution Plans. Each Fund's Class A, Class B and Class C shares pay for the
costs associated with the distribution of its shares according to a
distribution plan that it has adopted pursuant to Rule 12b-1 under the 1940 Act
(each a "Plan" or collectively the "Plans"). Under the Plans, each Fund may
incur distribution-related and shareholder servicing-related fees which are
expressed as a percentage of a class' average daily net assets and based upon
the following maximum annual rates:
32
<PAGE>
<TABLE>
<CAPTION>
Share Class Annual Distribution Fee
- ------------------- ----------------------------------------------------
<S> <C>
Class A ......... 0.75% (currently limited to 0.25%)
Class B ......... 1.00%
0.75% (for Evergreen Emerging Markets Growth Fund
and Evergreen International Equity Fund)
Class C ......... 1.00%
0.75% (for Evergreen Emerging Markets Growth Fund
and Evergreen International Equity Fund)
</TABLE>
Of the amount that each Class may pay under its respective Plan, up to
0.25% may constitute a service fee to be used to compensate organizations,
which may include each Fund's investment adviser or their affiliates, for
personal services rendered to shareholders and/or the maintenance of
shareholder accounts. The Funds may not pay any distribution or services fees
during any fiscal period in excess of the amounts set forth above.
Evergreen Emerging Markets Growth Fund, Evergreen International Equity
Fund and Evergreen Global Leaders Fund have a shareholder service plan
("Service Plan") in addition to the Plan adopted with respect to their Class B
and Class C shares. The Service Plan permits a fund to incur a fee of up to
0.25% of 1% of Class B and Class C aggregate average daily net assets for
ongoing personal services and/or the maintenance of shareholder accounts. Plan
and Service Plan payments to financial intermediaries will not exceed 0.25% of
the aggregate average daily net assets attributable to each Class of shares of
a Fund.
The Plans are in compliance with the Conduct Rules of the National
Association of Securities Dealers, Inc. which effectively limit the annual
asset-based sales charges and service fees that a mutual fund may pay on a
class of shares to an annual rate of 0.75% and 0.25%, respectively, of the
average aggregate annual net assets attributable to that class. The rules also
limit the aggregate of all front-end, deferred and asset-based sales charges
imposed with respect to a class of shares by a mutual fund that also charges a
service fee to 6.25% of cumulative gross sales of shares of that class, plus
interest on the unpaid amount at the prime rate plus 1% per annum.
Distribution Agreements. The Funds have also entered into distribution
- -----------------------
agreements (each a "Distribution Agreement" or collectively the "Distribution
Agreements") with EDI. Pursuant to the Distribution Agreements, the Fund will
compensate EDI for its services as distributor based upon the maximum annual
rate as a percentage of the Fund's average daily net assets attributable to the
Class, as follows:
<TABLE>
<S> <C>
Class A shares 0.25%
Class B shares 1.00%
Class C shares 1.00%
</TABLE>
The Distribution Agreements provide that EDI will use a portion of the
distribution fee received from the Fund for payments (1) to compensate
broker-dealers or other persons for distributing shares of the Fund, including
interest and principal payments made in respect of amounts paid to
broker-dealers or other persons that have been financed (EDI may assign its
rights to receive compensation under the Plans to secure such financings), (2)
to otherwise promote the sale of shares of the Fund, and (3) to compensate
broker-dealers, depository institutions and other financial intermediaries for
providing administrative, accounting and other services with respect to the
Fund's shareholders. FUNB or its affiliates may finance the payments made by
EDI to compensate broker-dealers or other persons for distributing shares of
the Fund.
In the event the Fund acquires the assets of other mutual funds,
compensation paid to EDI under the Distribution Agreements may be paid by EDI
to the distributors of the funds or their predecessors.
Since EDI's compensation under the Distribution Agreements is not directly
tied to the expenses incurred by EDI, the amount of compensation received by
EDI under the Distribution Agreements during any year may be more or less than
its actual expenses and may result in a profit to EDI. Distribution expenses
incurred by EDI in one fiscal year that exceed the level of compensation paid
to EDI for that year may be paid from distribution fees received from the Fund
in subsequent fiscal years.
33
<PAGE>
- --------------------------------------------------------------------------------
PURCHASE AND REDEMPTION OF SHARES
- --------------------------------------------------------------------------------
HOW TO BUY SHARES
You may purchase shares of any Fund through broker-dealers, banks or other
financial intermediaries, or directly through EDI. In addition, you may
purchase shares of a Fund by mailing to the Fund, c/o ESC, P.O. Box 2121,
Boston, Massachusetts 02106-2121, a completed application and a check payable
to the Fund. You may also telephone 1-800-343-2898 to obtain the number of an
account to which you can wire or electronically transfer funds and then send in
a completed application. The minimum initial investment is $1,000, which may be
waived in certain situations. Subsequent investments in any amount may be made
by check, by wiring federal funds, by direct deposit or by an electronic funds
transfer.
There is no minimum amount for subsequent investments. Investments of $25
or more are allowed under the Systematic Investment Plan. See the application
for more information. Only Class A, Class B and Class C shares are offered
through this prospectus. (See "General Information -- Other Classes of
Shares.")
Class A Shares -- Front-End Sales Charge Alternative. You may purchase Class A
- ----------------------------------------------------
shares at net asset value plus an initial sales charge on purchases under
$1,000,000. You may purchase $1,000,000 or more of Class A shares without a
front-end sales charge; however, a contingent deferred sales charge ("CDSC")
equal to the lesser of 1% of the purchase price or the redemption value will be
imposed on shares redeemed during the month of purchase and the 12-month period
following the month of purchase. The schedule of charges for Class A shares is
as follows:
<TABLE>
<CAPTION>
As a % of the Net As a % of the Commission to Dealer/Agent
Amount of Purchase Amount Invested Offering Price as a % of Offering Price
<S> <C> <C> <C>
Less than $ 50,000 4.99% 4.75% 4.25%
$50,000 - $ 99,999 4.71% 4.50% 4.25%
$100,000 - $249,999 3.90% 3.75% 3.25%
$250,000 - $499,999 2.56% 2.50% 2.00%
$500,000 - $999,999 2.04% 2.00% 1.75%
$1,000,000 or more None None 1.00% of the amount invested up
to $2,999,999; .50% of the
amount invested over
$2,999,999, up to $4,999,999;
and .25% of the excess over
$4,999,999
</TABLE>
No front-end sales charges are imposed on Class A shares purchased by (a)
institutional investors, which may include bank trust departments and
registered investment advisers; (b) investment advisers, consultants or
financial planners who place trades for their own accounts or the accounts of
their clients and who charge such clients a management, consulting, advisory or
other fee; (c) clients of investment advisers or financial planners who place
trades for their own accounts if the accounts are linked to the master account
of such investment advisers or financial planners on the books of the
broker-dealer through whom shares are purchased; (d) institutional clients of
broker-dealers, including retirement and deferred compensation plans and the
trusts used to fund these plans, which place trades through an omnibus account
maintained with a Fund by the broker-dealer; (e) shareholders of record on
October 12, 1990 in any series of Evergreen Investment Trust in existence on
that date, and the members of their immediate families; (f) current and retired
employees of FUNB and its affiliates, EDI and any broker-dealer with whom EDI
has entered into an agreement to sell shares of the Funds, and members of the
immediate families of such employees; (g) and upon the initial purchase of an
Evergreen fund by investors reinvesting the proceeds from a redemption within
the preceding 30 days of shares of other mutual funds, provided such shares
were initially purchased with a front-end sales charge or subject to a CDSC.
Certain broker-dealers or other financial institutions may impose a fee on
transactions in shares of the Funds.
34
<PAGE>
Class A shares may also be purchased at net asset value by corporate or
certain other qualified retirement plans or a non-qualified deferred
compensation plan or a Title I tax sheltered annuity or TSA plan sponsored by
an organization having 100 or more eligible employees, or a TSA plan sponsored
by a public education entity having 5,000 or more eligible employees.
In connection with sales made to plans of the type described in the
preceding sentence EDI will pay broker-dealers and others concessions at the
rate of 0.50% of the net asset value of the shares purchased. These payments
are subject to reclaim in the event the shares are redeemed within twelve
months after purchase.
Certain employer-sponsored retirement or savings plans, including eligible
401(k) plans, may purchase Class A shares at net asset value provided that such
plans meet certain required minimum number of eligible employees or required
amount of assets. The CDSC applicable to Class B shares also is waived on
redemptions of shares by such plans. Additional information concerning the
waiver of sales charges is set forth in the SAI.
When Class A shares are sold, EDI will normally retain a portion of the
applicable sales charge and pay the balance to the broker-dealer or other
financial intermediary through whom the sale was made. EDI may also pay fees to
banks from sales charges for services performed on behalf of the customers of
such banks in connection with the purchase of shares of a Fund. In addition to
compensation paid at the time of sale, entities whose clients have purchased
Class A shares may receive a trailing commission equal to 0.25% of the average
daily net asset value on an annual basis of Class A shares held by their
clients. Certain purchases of Class A shares may qualify for reduced sales
charges in accordance with a Fund's Concurrent Purchases, Rights of
Accumulation, Letters of Intent, certain Retirement Plans and Reinstatement
Privilege. Consult the application for additional information concerning these
reduced sales charges.
Class B Shares -- Deferred Sales Charge Alternative. You may purchase Class B
- ---------------------------------------------------
shares at net asset value without an initial sales charge. However, you may pay
a CDSC if you redeem shares within six years after the month of purchase. The
amount of the CDSC (expressed as a percentage of the lesser of the current net
asset value or original cost) will vary according to the number of years from
the month of purchase of Class B shares as set forth below.
<TABLE>
<S> <C>
CDSC
Redemption Timing Imposed
- ------------------------------------------------------------------------------------------ ----
Month of purchase and the first twelve-month period following the month of purchase ..... 5.00%
Second twelve-month period following the month of purchase .............................. 4.00%
Third twelve-month period following the month of purchase ............................... 3.00%
Fourth twelve-month period following the month of purchase .............................. 3.00%
Fifth twelve-month period following the month of purchase ............................... 2.00%
Sixth twelve-month period following the month of purchase ............................... 1.00%
No CDSC is imposed on amounts redeemed thereafter.
</TABLE>
The CDSC is deducted from the amount of the redemption and is paid to EDI.
In the event a Fund acquires the assets of other mutual funds, the CDSC may be
paid by EDI to the distributors of the acquired funds. Class B shares are
subject to higher distribution and/or shareholder service fees than Class A
shares for a period of seven years after the month of purchase (after which it
is expected that they will convert to Class A shares without imposition of a
front-end sales charge). The higher fees mean a higher expense ratio, so Class
B shares pay correspondingly lower dividends and may have a lower net asset
value than Class A shares. A Fund will not normally accept any purchase of
Class B shares in the amount of $250,000 or more.
At the end of the period ending seven years after the end of the calendar
month in which the shareholder's purchase order was accepted, Class B shares
will automatically convert to Class A shares and will no longer be subject to
the higher distribution and service fees imposed on Class B shares. Such
conversion will be on the basis of the relative net asset values of the two
classes, without the imposition of any sales load, fee or other charge. The
purpose of the conversion feature is to reduce the distribution services fee
paid by holders of Class B shares that have been outstanding long enough for
the Distributor to have been compensated for the expenses associated with the
sale of such shares.
35
<PAGE>
Class C Shares -- Level-Load Alternative. Class C shares are only offered
- ----------------------------------------
through broker-dealers who have special distribution agreements with EDI. You
may purchase Class C shares at net asset value without any initial sales charge
and, therefore, the full amount of your investment will be used to purchase
Fund shares. However, you will pay a 1.00% CDSC if you redeem shares during the
month of purchase and the 12-month period following the month of purchase. No
CDSC is imposed on amounts redeemed thereafter. Class C shares incur higher
distribution and/or shareholder service fees than Class A shares but, unlike
Class B shares, do not convert to any other class of shares of a Fund. The
higher fees mean a higher expense ratio, so Class C shares pay correspondingly
lower dividends and may have a lower net asset value than Class A shares. A
Fund will not normally accept any purchase of Class C shares in the amount of
$500,000 or more. No CDSC will be imposed on Class C shares purchased by
institutional investors and through employee benefit and savings plans eligible
for the exemption from front-end sales charges described under "Class A Shares
- -- Front-End Sales Charge Alternative" above. Broker-dealers and other
financial intermediaries whose clients have purchased Class C shares may
receive a trailing commission equal to 0.75% of the average daily net asset
value of such shares on an annual basis held by their clients more than one
year from the date of purchase. Trailing commissions will commence immediately
with respect to shares eligible for exemption from the CDSC normally applicable
to Class C shares.
Contingent Deferred Sales Charge. Certain shares with respect to which a Fund
- --------------------------------
did not pay a commission on issuance, including shares obtained from dividend
or distribution reinvestment, are not subject to a CDSC. Any CDSC imposed upon
the redemption of Class A, Class B or Class C shares is a percentage of the
lesser of (1) the net asset value of the shares redeemed or (2) the net asset
value at the time of purchase of such shares.
No CDSC is imposed on a redemption of shares of a Fund in the event of:
(1) death or disability of the shareholder; (2) a lump-sum distribution from a
401(k) plan or other benefit plan qualified under the Employee Retirement
Income Security Act of 1974 ("ERISA"); (3) automatic withdrawals from ERISA
plans if the shareholder is at least 59 1/2 years old; (4) involuntary
redemptions of accounts having an aggregate net asset value of less than
$1,000; (5) automatic withdrawals under the Systematic Withdrawal Plan of up to
1.00% per month of the shareholder's initial account balance; (6) withdrawals
consisting of loan proceeds to a retirement plan participant; (7) financial
hardship withdrawals made by a retirement plan participant; or (8) withdrawals
consisting of returns of excess contributions or excess deferral amounts made
to a retirement plan participant.
Each Fund may also sell Class A, Class B or Class C shares at net asset
value without any initial sales charge or CDSC to certain Directors, Trustees,
officers and employees of the Fund, Keystone, FUNB, Evergreen Asset, EDI and
certain of their affiliates, and to members of the immediate families of such
persons, to registered representatives of firms with dealer agreements with
EDI, and to a bank or trust company acting as a trustee for a single account.
How the Funds Value Their Shares. The net asset value of each class of shares
- --------------------------------
of a Fund is calculated by dividing the value of the amount of the Fund's net
assets attributable to that class by the number of outstanding shares of that c
lass. Shares are valued each day the New York Stock Exchange (the "Exchange")
is open as of the close of regular trading (currently 4:00 p.m. eastern time).
The securities in a Fund are valued at their current market values determined
on the basis of market quotations or, if such quotations are not readily
available, such other methods as the Trustees believe would accurately reflect
fair value.
General. The decision as to which class of shares is more beneficial to you
- -------
depends on the amount of your investment and the length of time you will hold
it. If you are making a large investment, thus qualifying for a reduced sales
charge, you might consider Class A shares. If you are making a smaller
investment, you might consider Class B shares since 100% of your purchase is
invested immediately and since such shares will convert to Class A shares,
which incur lower ongoing distribution and/or shareholder service fees, after
seven years. If you are unsure of the time period of your investment, you might
consider Class C shares since there are no initial sales charges and, although
there is no conversion feature, the CDSC only applies to redemptions made
during the first year after the month of purchase. Consult your financial
intermediary for further information. The compensation received by broker-
dealers and agents may differ depending on whether they sell Class A, Class B
or Class C shares. There is no size limit on purchases of Class A shares.
In addition to the discount or commission paid to broker-dealers, EDI may
from time to time pay to broker-dealers additional cash or other incentives
that are conditioned upon the sale of a specified minimum dollar amount of
shares of a Fund and/or other Evergreen funds. Such incentives will take the
form of payment for attendance at
36
<PAGE>
seminars, lunches, dinners, sporting events or theater performances, or payment
for travel, lodging and entertainment incurred in connection with travel by
persons associated with a broker-dealer and their immediate family members to
urban or resort locations within or outside the United States. Such a dealer
may elect to receive cash incentives of equivalent amount in lieu of such
payments. EDI may also limit the availability of such incentives to certain
specified dealers. EDI from time to time sponsors promotions involving First
Union Brokerage Services, Inc., an affiliate of each Fund's investment adviser,
and select broker-dealers, pursuant to which incentives are paid, including
gift certificates and payments in amounts up to 1% of the dollar amount of
shares of a Fund sold. Awards may also be made based on the opening of a
minimum number of accounts. Such promotions are not being made available to all
broker-dealers. Certain broker-dealers may also receive payments from EDI or a
Fund's investment adviser over and above the usual trail commissions or
shareholder servicing payments applicable to a given class of shares.
Additional Purchase Information. As a condition of this offering, if a purchase
- -------------------------------
is canceled due to nonpayment or because an investor's check does not clear,
the investor will be responsible for any loss a Fund or the Fund's investment
adviser incurs. If such investor is an existing shareholder, the Fund may
redeem shares from an investor's account to reimburse the Fund or its
investment adviser for any loss. In addition, such investor may be prohibited
or restricted from making further purchases in any of the Evergreen funds. The
Fund will not accept third party checks other than those payable directly to a
shareholder whose account has been in existence at least 30 days.
HOW TO REDEEM SHARES
You may "redeem" ( i.e., sell) your shares in a Fund to the Fund for cash
at their net redemption value on any day the Exchange is open, either directly
by writing to the Fund, c/o ESC, or through your financial intermediary. The
amount you will receive is based on the net asset value adjusted for fractions
of a cent (less any applicable CDSC) next calculated after a Fund receives your
request in proper form. Proceeds generally will be sent to you within seven
days. However, for shares recently purchased by check, a Fund will not send
proceeds until it is reasonably satisfied that the check has been collected
(which may take up to 15 days). Once a redemption request has been telephoned
or mailed, it is irrevocable and may not be modified or canceled.
Redeeming Shares Through Your Financial Intermediary. A Fund must receive
- ----------------------------------------------------
instructions from your financial intermediary before 4:00 p.m. (Eastern time)
for you to receive that day's net asset value (less any applicable CDSC). Your
financial intermediary is responsible for furnishing all necessary
documentation to a Fund and may charge you for this service. Certain financial
intermediaries may require that you give instructions earlier than 4:00 p.m.
(Eastern time).
Redeeming Shares Directly by Mail or Telephone. Send a signed letter of
- ----------------------------------------------
instruction or stock power form to the Fund, c/o ESC , the registrar, transfer
agent and dividend-disbursing agent for each Fund. Stock power forms are
available from your financial intermediary, ESC, and many commercial banks.
Additional documentation is required for the sale of shares by corporations,
financial intermediaries, fiduciaries and surviving joint owners. Signature
guarantees are required for all redemption requests for shares with a value of
more than $50,000. Currently, the requirement for a signature guarantee has
been waived on redemptions of $50,000 or less when the account address of
record has been the same for a minimum period of 30 days. Each Fund and ESC
reserve the right to withdraw this waiver at any time. A signature guarantee
must be provided by a bank or trust company (not a Notary Public), a member
firm of a domestic stock exchange or by other financial institutions whose
guarantees are acceptable under the Securities Exchange Act of 1934 and ESC's
policies.
Shareholders may redeem amounts of $1,000 or more (up to $50,000) from
their accounts by calling the telephone number on the front page of this
Prospectus between the hours of 8:00 a.m. and 6:00 p.m. (Eastern time) each
business day (i.e., any weekday exclusive of days on which the Exchange or
ESC's offices are closed). The Exchange is closed on New Year's Day, Martin
Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day, Independence
Day, Labor Day, Thanksgiving Day and Christmas Day. Redemption requests
received after 4:00 p.m. (Eastern time) will be processed using the net asset
value determined on the next business day. Such redemption requests must
include the shareholder's account name, as registered with a Fund, and the
account number. During periods of drastic economic or market changes,
shareholders may experience difficulty in effecting telephone redemptions. If
you cannot reach a Fund by telephone, you should follow the procedures for
redeeming by mail or through a broker-dealer as set forth herein. The telephone
redemption service is not made available to shareholders automatically.
Shareholders wishing to use the telephone redemption service must complete the
appropriate sections on
37
<PAGE>
the Application and choose how the redemption proceeds are to be paid.
Redemption proceeds will either (1) be mailed by check to the shareholder at
the address in which the account is registered or (2) be wired to an account
with the same registration as the shareholder's account in a Fund at a
designated commercial bank.
In order to insure that instructions received by ESC are genuine when you
initiate a telephone transaction, you will be asked to verify certain criteria
specific to your account. At the conclusion of the transaction, you will be
given a transaction number confirming your request, and written confirmation of
your transaction will be mailed the next business day. Your telephone
instructions will be recorded. Redemptions by telephone are allowed only if the
address and bank account of record have been the same for a minimum period of
30 days. Each Fund reserves the right at any time to terminate, suspend, or
change the terms of any redemption method described in this Prospectus, except
redemption by mail, and to impose fees.
Except as otherwise noted, the Funds, ESC and EDI will not assume
responsibility for the authenticity of any instructions received by any of them
from a shareholder in writing, over the Evergreen Express Line, or by
telephone. ESC will employ reasonable procedures to confirm that instructions
received over the Evergreen Express Line or by telephone are genuine. The
Funds, ESC and EDI will not be liable when following instructions received over
the Evergreen Express Line or by telephone that ESC reasonably believes are
genuine.
Evergreen Express Line. The Evergreen Express Line offers you specific fund
- ----------------------
account information and price and yield quotations as well as the ability to do
account transactions, including investments, exchanges and redemptions. You may
access the Evergreen Express Line by dialing toll free 1-800-346-3858 on any
touch-tone telephone, 24 hours a day, seven days a week.
General. The sale of shares is a taxable transaction for federal income tax
- -------
purposes. The Funds may temporarily suspend the right to redeem their shares
when (1) the Exchange is closed, other than customary weekend and holiday
closings; (2) trading on the Exchange is restricted; (3) an emergency exists
and the Funds cannot dispose of their investments or fairly determine their
value; or (4) the Securities and Exchange Commission ("SEC") so orders. The
Funds reserve the right to close an account that through redemption has fallen
below $1,000 and has remained so for 30 days. Shareholders will receive 60
days' written notice to increase the account value to at least $1,000 before
the account is closed. The Funds have elected to be governed by Rule 18f-1
under the 1940 Act pursuant to which each Fund is obligated to redeem shares
solely in cash, up to the lesser of $250,000 or 1% of a Fund's total net
assets, during any ninety day period for any one shareholder.
EXCHANGE PRIVILEGE
How To Exchange Shares. You may exchange some or all of your shares for shares
of the same class in the other Evergreen funds through your financial
intermediary by calling or writing to ESC or by using the Evergreen Express
Line as described below. If the shares being tendered for exchange are still
subject to a CDSC or are eligible for conversion in a specified time, such
remaining charge or remaining time will carry over to the shares being acquired
in the exchange transaction. Once an exchange request has been telephoned or
mailed, it is irrevocable and may not be modified or canceled. Exchanges will
be made on the basis of the relative net asset values of the shares exchanged
next determined after an exchange request is received. An exchange which
represents an initial investment in another Evergreen fund is subject to the
minimum investment and suitability requirements of each Fund.
Each of the Evergreen funds has different investment objectives and
policies. For complete information, a prospectus of the fund into which an
exchange will be made should be read prior to the exchange. An exchange order
must comply with the requirement for a redemption or repurchase order and must
specify the dollar value or number of shares to be exchanged. An exchange is
treated for federal income tax purposes as a redemption and purchase of shares
and may result in the realization of a capital gain or loss. Shareholders are
limited to five exchanges per calendar year, with a maximum of three per
calendar quarter. This exchange privilege may be modified or discontinued at
any time by the Fund upon sixty days' notice to shareholders and is only
available in states in which shares of the fund being acquired may lawfully be
sold.
No CDSC will be imposed in the event shares are exchanged for shares of
the same class of other Evergreen funds. If you redeem shares, the CDSC
applicable to the shares of the Evergreen fund originally purchased for cash is
applied. Also, Class B shares will continue to age following an exchange for
purposes of conversion to Class A shares and for the purpose of determining the
amount of the applicable CDSC.
38
<PAGE>
Exchanges Through Your Financial Intermediary. A Fund must receive exchange
- ---------------------------------------------
instructions from your financial intermediary before 4:00 p.m. (Eastern time)
for you to receive that day's net asset value. Your financial intermediary is
responsible for furnishing all necessary documentation to a Fund and may charge
you for this service.
Exchanges by Telephone and Mail. Exchange requests received by a Fund after
- -------------------------------
4:00 p.m. (Eastern time) will be processed using the net asset value determined
at the close of the next business day. During periods of drastic economic or
market changes, shareholders may experience difficulty in effecting telephone
exchanges. You should follow the procedures outlined below for exchanges by
mail if you are unable to reach ESC by telephone. If you wish to use the
telephone exchange service you should indicate this on the Application. As
noted above, each Fund will employ reasonable procedures to confirm that
instructions for the redemption or exchange of shares communicated by telephone
are genuine. A telephone exchange may be refused by a Fund or ESC if it is
believed advisable to do so. Procedures for exchanging Fund shares by telephone
may be modified or terminated at any time. Written requests for exchanges
should follow the same procedures outlined for written redemption requests in
the section entitled "How to Redeem Shares"; however, no signature guarantee is
required.
SHAREHOLDER SERVICES
The Funds offer the following shareholder services. For more information
about these services or your account, contact your financial intermediary, ESC
or call the toll-free number on the front page of this Prospectus. Some
services are described in more detail in the application.
Systematic Investment Plan. Under a Systematic Investment Plan, you may invest
- --------------------------
as little as $25 per month to purchase shares of a Fund with no minimum initial
investment required.
Telephone Investment Plan. You may make investments into an existing account
- -------------------------
electronically in amounts of not less than $100 or more than $10,000 per
investment. Telephone investment requests received by 4:00 p.m. (Eastern time)
will be credited to a shareholder's account the day the request is received.
Systematic Withdrawal Plan. When an account of $10,000 or more is opened or
- --------------------------
when an existing account reaches that size, you may participate in the
Systematic Withdrawal Plan by filling out the appropriate part of the
application. Under this Plan, you may receive (or designate a third party to
receive) a monthly or quarterly fixed-withdrawal payment in a stated amount of
at least $75 and may be as much as 1.0% per month or 3.0% per quarter of the
total net asset value of the Fund shares in your account when the Plan was
opened. Fund shares will be redeemed as necessary to meet withdrawal payments.
All participants must elect to have their dividends and capital gain
distributions reinvested automatically. Any applicable CDSC will be waived with
respect to redemptions occurring under a Systematic Withdrawal Plan during a
calendar year to the extent that such redemptions do not exceed 12% of (1) the
initial value of the account plus (2) the value, at the time of purchase, of
any subsequent investments.
Investments Through Employee Benefit and Savings Plans. Certain qualified and
- ------------------------------------------------------
non-qualified benefit and savings plans may make shares of the Funds and the
other Evergreen funds available to their participants. Investments made by such
employee benefit plans may be exempt from front-end sales charges if they meet
the criteria set forth under "Class A Shares-Front End Sales Charge
Alternative". Evergreen Asset, Keystone or FUNB may provide compensation to
organizations providing administrative and recordkeeping services to plans
which make shares of the Evergreen funds available to their participants.
Automatic Reinvestment Plan. For the convenience of investors, all dividends
- ---------------------------
and distributions are automatically reinvested in full and fractional shares of
a Fund at the net asset value per share at the close of business on the record
date, unless otherwise requested by a shareholder in writing. If the transfer
agent does not receive a written request for subsequent dividends and/or
distributions to be paid in cash at least three full business days prior to a
given record date, the dividends and/or distributions to be paid to a
shareholder will be reinvested.
Dollar Cost Averaging. Through dollar cost averaging you can invest a fixed
- ---------------------
dollar amount each month or each quarter in any Evergreen fund. This results in
more shares being purchased when the selected fund's net asset value is
relatively low and fewer shares being purchased when the fund's net asset value
is relatively high and may result in a lower average cost per share than a less
systematic investment approach.
39
<PAGE>
Prior to participating in dollar cost averaging, you must establish an
account in an Evergreen fund. You should designate on the application (1) the
dollar amount of each monthly or quarterly investment you wish to make and (2)
the fund in which the investment is to be made. Thereafter, on the first day of
the designated month, an amount equal to the specified monthly or quarterly
investment will automatically be redeemed from your initial account and
invested in shares of the designated fund.
If you are a Class A investor and paid a sales charge on your initial
purchase, the shares purchased will be eligible for Rights of Accumulation and
the sales charge applicable to the purchase will be determined accordingly. In
addition, the value of shares purchased will be included in the total amount
required to fulfill a Letter of Intent. If a sales charge was not paid on the
initial purchase, a sales charge will be imposed at the time of subsequent
purchases, and the value of shares purchased will become eligible for Rights of
Accumulation and Letters of Intent.
Two Dimensional Investing. You may elect to have income and capital gains
- -------------------------
distributions from any class of Evergreen fund shares you own automatically
invested to purchase the same class of shares of any other Evergreen fund. You
may select this service on your Application and indicate the Evergreen fund(s)
into which distributions are to be invested.
Tax Sheltered Retirement Plans. The Funds have various retirement plans
- ------------------------------
available to eligible investors, including Individual Retirement Accounts
(IRAs); Rollover IRAs; Simplified Employee Pension Plans (SEPs); Savings
Incentive Match Plan for Employees (SIMPLEs); Tax Sheltered Annuity Plans;
403(b)(7) Plans; 401(k) Plans; Keogh Plans; Profit-Sharing Plans; Medical
Savings Accounts; Pension and Target Benefit and Money Purchase Plans. For
details, including fees and application forms, call toll free 1-800-247-4075 or
write to ESC.
BANKING LAWS
The Glass-Steagall Act and other banking laws and regulations presently
prohibit member banks of the Federal Reserve System ("Member Banks") or their
non-bank affiliates from sponsoring, organizing, controlling, or distributing
the shares of registered open-end investment companies such as the Funds. Such
laws and regulations also prohibit banks from issuing, underwriting or
distributing securities in general. However, under the Glass-Steagall Act and
such other laws and regulations, a Member Bank or an affiliate thereof may act
as investment adviser, transfer agent or custodian to a registered open-end
investment company and may also act as agent in connection with the purchase of
shares of such an investment company upon the order of its customer. FUNB and
its affiliates are subject to and in compliance with the aforementioned laws
and regulations.
Changes to applicable laws and regulations or future judicial or
administrative decisions could result in FUNB or its affiliates being prevented
from continuing to perform the services required under the investment advisory
contract or from acting as agent in connection with the purchase of shares of
the Funds by its customers. If FUNB or its affiliates were prevented from
continuing to provide the services called for under the investment advisory
agreement, it is expected that the Trustees would identify, and call upon the
Fund's shareholders to approve, a new investment adviser. If this were to
occur, it is not anticipated that the shareholders of a Fund would suffer any
adverse financial consequences.
- --------------------------------------------------------------------------------
OTHER INFORMATION
- --------------------------------------------------------------------------------
DIVIDENDS, DISTRIBUTIONS AND TAXES
Each Fund intends to distribute its investment company taxable income
annually and net realized capital gains at least annually. Shareholders receive
Fund distributions in the form of additional shares of that class of shares
upon which the distribution is based or, at the shareholder's option, in cash.
Shareholders of a Fund who have not opted to receive cash prior to the payable
date for any dividend from net investment income or the record date for any
capital gains distribution will have the number of such shares determined on
the basis of the Fund's net asset value per share computed at the end of that
day after adjustment for the distribution. Net asset value is used in computing
the number of shares in both capital gains and income distribution investments.
40
<PAGE>
Because Class A shares bear most of the costs of distribution of such
shares through payment of a front-end sales charge, while Class B and, when
applicable, Class C shares bear such expenses through a higher annual
distribution fee, expenses attributable to Class B shares and Class C shares
will generally be higher than those of Class A shares, and income distributions
paid by a Fund with respect to Class A shares will generally be greater than
those paid with respect to Class B and Class C shares.
Account statements and/or checks, as appropriate, will be mailed within
seven days after a Fund pays a distribution. Unless the Fund receives
instructions to the contrary before the record or payable date, as the case may
be, it will assume that a shareholder wishes to receive that distribution and
future capital gains and income distributions in shares. Instructions continue
in effect until changed in writing.
Each Fund intends to qualify as a regulated investment company under the
Internal Revenue Code of 1986, as amended (the "Code"). While so qualified, it
is expected that a Fund will not be required to pay any federal income taxes on
that portion of its investment company taxable income and any net realized
capital gains it distributes to shareholders. The Code imposes a 4%
nondeductible excise tax on regulated investment companies, such as the Funds,
to the extent they do not meet certain distribution requirements by the end of
each calendar year. The Funds anticipate meeting such distribution
requirements.
Any taxable dividend declared in October, November or December to
shareholders of record in such a month and paid by the following January 31
will be includable in the taxable income of shareholders as if paid on December
31 of the year in which the dividend was declared.
A Fund may be subject to foreign withholding taxes which would reduce the
yield on its investments. Tax treaties between certain countries and the U.S.
may reduce or eliminate such taxes. Shareholders of a Fund who are subject to
U.S. federal income tax may be entitled, subject to certain rules and
limitations, to claim a federal income tax credit or deduction for foreign
income taxes paid by the Fund. See the SAI for additional details. A Fund's
transactions in options, futures and forward contracts may be subject to
special tax rules. These rules can affect the amount, timing and
characteristics of distributions to shareholders.
Each Fund is required by federal law to withhold 31% of reportable
payments (which may include dividends, capital gains distributions (if any) and
redemptions) paid to certain shareholders. In order to avoid this backup
withholding requirement, each investor must certify on the application, or on a
separate form supplied by the Funds' transfer agent, that the investor's social
security or taxpayer identification number is correct and that the investor is
not currently subject to backup withholding or is exempt from backup
withholding.
A shareholder who acquires Class A shares of a Fund and sells or otherwise
disposes of such shares within 90 days of acquisition may not be allowed to
include certain sales charges incurred in acquiring such shares for purposes of
calculating gain and loss realized upon a sale or exchange of shares of the
Fund.
Each Fund intends to distribute its net capital gains as capital gains
dividends. Shareholders should treat such dividends as long-term capital gains.
A Fund will designate capital gains distributions as such by a written notice
mailed to each shareholder no later than 60 days after the close of the Fund's
taxable year. If a shareholder receives a capital gain dividend and holds his
shares for six months or less, then any allowable loss on disposition of such
shares will be treated as a long-term capital loss to the extent of such
capital gain dividend.
The foregoing discussion of federal income tax consequences is based on
tax laws and regulations in effect on the date of this Prospectus and is
subject to change by legislative or administrative action. As the foregoing
discussion is for general information only, you should also review the
discussion of "Additional Tax Information" contained in the SAI. In addition,
you should consult your own tax adviser as to the tax consequences of
investments in a Fund, including the application of state and local taxes which
may be different from the federal income tax consequences described above.
GENERAL INFORMATION
Portfolio Turnover. The estimated annual portfolio turnover rate for a Fund is
not expected to exceed 100%. The portfolio turnover rate for Evergreen Emerging
Markets Growth Fund, Evergreen International Growth Fund and Evergreen Latin
America Fund was in excess of 100% for their most recent fiscal year. However,
the estimated annual portfolio turnover rate is not expected to exceed 200% for
each such fund. A portfolio turnover rate of
41
<PAGE>
100% would occur if all of a Fund's portfolio securities were replaced in one
year. The portfolio turnover rate experienced by each Fund directly affects the
transaction costs relating to the purchase and sale of securities which each
Fund bears directly. A high rate of portfolio turnover will increase such
costs. See the SAI for further information regarding the practices of each Fund
affecting portfolio turnover.
Portfolio Transactions. Consistent with the Rules of Conduct of the National
- ----------------------
Association of Securities Dealers, Inc., and subject to seeking best price and
execution, a Fund may consider sales of its shares as a factor in the selection
of dealers to enter into portfolio transactions with a Fund.
Other Classes of Shares. Each Fund (except Evergreen Precious Metals Fund and
- -----------------------
Evergreen Natural Resources Fund) currently offers four classes of shares,
Class A, Class B, Class C and Class Y, and may in the future offer additional
classes. Class Y shares are not offered by this Prospectus and are only
available to (1) persons who at or prior to December 31, 1994, owned shares in
a mutual fund advised by Evergreen Asset, (2) certain institutional investors
and (3) investment advisory clients of FUNB, Evergreen Asset, Keystone or their
affiliates. Evergreen Precious Metals Fund and Evergreen Natural Resources Fund
currently offer Class A, Class B and Class C shares. The dividends payable with
respect to Class A, Class B and Class C shares will be less than those payable
with respect to Class Y shares due to the distribution and shareholder
servicing-related expenses borne by Class A, Class B and Class C shares and the
fact that such expenses are not borne by Class Y shares. Investors should
telephone (800) 343-2898 to obtain more information on other classes of shares.
Performance Information. The Funds may quote their "total return" or "yield"
- -----------------------
for specified periods in advertisements, reports, or other communications to
shareholders. Total return and yield are computed separately for each Class of
shares. Performance data for one or more Classes may be included in any
advertisement or sales literature using performance data of a Fund.
Yield is a way of showing the rate of income a Fund earns on its
investments as a percentage of the Fund's share price. The Fund's yield is
calculated according to accounting methods that are standardized by the SEC for
all stock and bond funds. Because yield accounting methods differ from the
method used for other accounting purposes, a Fund's yield may not equal its
distribution rate, the income paid to your account or the income reported in a
Fund's financial statements. To calculate yield, a Fund takes the interest and
dividend income it earned from its portfolio of investments (as defined by the
SEC formula) for a 30-day period (net of expenses), divides it by the average
number of shares entitled to receive dividends, and expresses the result as an
annualized percentage rate based on a Fund's share price at the end of the
30-day period. This yield does not reflect gains or losses from selling
securities.
Total returns are based on the overall dollar or percentage change in the
value of a hypothetical investment in a Fund. A Fund's total return shows its
overall change in value including changes in share prices and assumes all the
Fund's distributions are reinvested. A cumulative total return reflects a
Fund's performance over a stated period of time. An average annual total return
reflects the hypothetical annually compounded return that would have produced
the same cumulative total return if a Fund's performance had been constant over
the entire period. Because average annual total returns tend to smooth out
variations in a Fund's return, you should recognize that they are not the same
as actual year-by-year results. To illustrate the components of overall
performance, a Fund may separate its cumulative and average annual total
returns into income results and realized and unrealized gain or loss.
Comparative performance information may also be used from time to time in
advertising or marketing each Fund's shares, including data from Lipper
Analytical Services, Inc., Morningstar and other industry publications. The
Funds may also advertise in items of sales literature an "actual distribution
rate" which is computed by dividing the total ordinary income distributed
(which may include the excess of short-term capital gains over losses) to
shareholders for the latest twelve month period by the maximum public offering
price per share on the last day of the period. Investors should be aware that
past performance may not be reflective of future results.
In marketing a Fund's shares, information may be provided that is designed
to help individuals understand their investment goals and explore various
financial strategies. Such information may include publications describing
general principles of investing, such as asset allocation, diversification,
risk tolerance, and goal setting; a questionnaire designed to help create a
personal financial profile; and an action plan offering investment
alternatives. The information provided to investors may also include
discussions of other Evergreen funds, products, and services, which may
include: retirement investing; brokerage products and services; the effects of
periodic investment
42
<PAGE>
plans and dollar cost averaging; saving for college; and charitable giving. In
addition, the information provided to investors may quote financial or business
publications and periodicals, including model portfolios or allocations, as
they relate to fund management, investment philosophy, and investment
techniques. The materials may also reprint, and use as advertising and sales
literature, articles from Evergreen Events, a quarterly magazine provided free
of charge to Evergreen fund shareholders.
Additional Information. This Prospectus and the Statement of Additional
- ----------------------
Information, which has been incorporated by reference herein, do not contain
all the information set forth in the Registration Statements filed by the Trust
with the SEC under the Securities Act of 1933, as amended. Copies of the
Registration Statement may be obtained at a reasonable charge from the SEC or
may be examined, without charge, at the offices of the SEC in Washington, D.C.
43
<PAGE>
Investment Advisers
Capital Management Group of First Union National Bank of North Carolina, 201
South College Street, Charlotte, North Carolina 28288
Evergreen Emerging Markets Growth Fund
Evergreen International Equity Fund
Evergreen Asset Management Corp., 2500 Westchester Avenue, Purchase, New York
10577
Evergreen Global Leaders Fund
Keystone Investment Management Company, 200 Berkeley Street, Boston,
Massachusetts 02116-5034
Evergreen Global Opportunities Fund
Evergreen International Growth Fund
Evergreen Precious Metals Fund
Evergreen Latin America Fund
Evergreen Natural Resources Fund
Custodian
State Street Bank and Trust Company, Box 9021, Boston, Massachusetts 02205-9827
Transfer Agent
Evergreen Service Company, P.O. Box 2121, Boston, Massachusetts 02106-2121
Legal Counsel
Sullivan & Worcester LLP, 1025 Connecticut Avenue, N.W., Washington, D.C. 20036
Independent Auditors
Price Waterhouse LLP, 1177 Avenue of the Americas, New York, New York 10036
KPMG Peat Marwick LLP, 99 High Street, Boston, Massachusetts 02110
Distributor
Evergreen Distributor, Inc., 125 W. 55th Street, New York, New York 10019
66019
536113Rev4
<PAGE>
- ----------------------------------------------------------------------------
PROSPECTUS March 1, 1998
- ----------------------------------------------------------------------------
[GRAPHIC OMITTED]
EVERGREENSM INTERNATIONAL AND GLOBAL GROWTH FUNDS
- ----------------------------------------------------------------------------
Evergreen Emerging Markets Growth Fund
Evergreen International Equity Fund
Evergreen Global Leaders Fund
Evergreen Global Opportunities Fund
Evergreen International Growth Fund
Evergreen Latin America Fund
CLASS Y SHARES
The Evergreen International and Global Growth Funds (the "Funds") are
designed to provide investors with a selection of investment alternatives which
seek to provide capital growth and diversification.
This Prospectus provides information regarding the Class Y shares offered
by the Funds. Each Fund is a series of an open-end, diversified, management
investment company. This Prospectus sets forth concise information about the
Funds that a prospective investor should know before investing. The address of
the Funds is 200 Berkeley Street, Boston, Massachusetts 02116.
A Statement of Additional Information for the Funds dated March 1, 1998,
as supplemented from time to time, has been filed with the Securities and
Exchange Commission and is incorporated by reference herein. The Statement of
Additional Information provides information regarding certain matters discussed
in this Prospectus and other matters which may be of interest to investors, and
may be obtained without charge by calling the Funds at (800) 343-2898. There
can be no assurance that the investment objective of any Fund will be achieved.
Investors are advised to read this Prospectus carefully.
The shares offered by this Prospectus are not deposits or obligations of any
bank, are not endorsed or guaranteed by any bank, and are not insured or
otherwise protected by the U.S. Government, the Federal Deposit Insurance
Corporation, the Federal Reserve Board, or any other government agency and
involve risk, including the possible loss of principal.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
Keep This Prospectus For Future Reference
EVERGREENSM is a Service Mark of Evergreen Asset Management Corp. Copyright
1995, Evergreen Asset Management Corp.
<PAGE>
TABLE OF CONTENTS
-----------------
<TABLE>
<S> <C>
EXPENSE INFORMATION 3
FINANCIAL HIGHLIGHTS 5
DESCRIPTION OF THE FUNDS 9
Investment Objectives and Policies 9
Investment Practices and Restrictions 12
Special Risk Considerations 15
ORGANIZATION AND SERVICE PROVIDERS 17
Organization 17
Service Providers 18
Sub-Advisers 20
</TABLE>
<TABLE>
<S> <C>
PURCHASE AND REDEMPTION OF SHARES 21
How to Buy Shares 21
How to Redeem Shares 21
Exchange Privilege 23
Shareholder Services 23
Banking Laws 24
OTHER INFORMATION 25
Dividends, Distributions and Taxes 25
General Information 26
</TABLE>
2
<PAGE>
- --------------------------------------------------------------------------------
EXPENSE INFORMATION
- --------------------------------------------------------------------------------
The table set forth below summarizes the shareholder transaction costs
associated with an investment in the Class Y shares of each Fund. For further
information see "Purchase and Redemption of Shares" and "General Information --
Other Classes of Shares".
<TABLE>
<S> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Charge Imposed on Purchases None
Sales Charge on Dividend Reinvestments None
Contingent Deferred Sales Charge None
Redemption Fee None
</TABLE>
Annual operating expenses reflect the normal operating expenses of the
Funds, and include costs such as management, distribution and other fees. The
table below shows the Fund's actual annual operating expenses for the fiscal
period ended October 31, 1997. The example shows what you would pay if you
invested $1,000 over the periods indicated. The example assumes that you
reinvest all of your dividends and that the Fund's average annual return will
be 5%. THE EXAMPLES ARE FOR ILLUSTRATION PURPOSES ONLY AND SHOULD NOT BE
CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES OR ANNUAL RETURN. THE
FUND'S ACTUAL EXPENSES AND RETURNS WILL VARY. For a more complete description
of the various costs and expenses borne by the Funds see "Organization and
Service Providers".
Evergreen Emerging Markets Growth Fund
<TABLE>
<CAPTION>
Annual Operating
Expenses*
-----------------
<S> <C>
Management Fees 1.00%
12b-1 Fees --
Other Expenses .50%
----
Total 1.50%
====
</TABLE>
<TABLE>
<CAPTION>
Example
--------
<S> <C>
After 1 Year $ 15
After 3 Years $ 47
After 5 Years $ 82
After 10 Years $179
</TABLE>
Evergreen International Equity Fund
<TABLE>
<CAPTION>
Annual Operating
Expenses*
-----------------
<S> <C>
Management Fees .66%
12b-1 Fees --
Other Expenses .33%
---
Total .99%
===
</TABLE>
<TABLE>
<CAPTION>
Example
--------
<S> <C>
After 1 Year $ 10
After 3 Years $ 32
After 5 Years $ 55
After 10 Years $121
</TABLE>
Evergreen Global Leaders Fund
<TABLE>
<CAPTION>
Annual Operating
Expenses*
-----------------
<S> <C>
Management Fees .88%
12b-1 Fees --
Other Expenses .76%
----
Total 1.64%
====
</TABLE>
<TABLE>
<CAPTION>
Example
--------
<S> <C>
After 1 Year $ 17
After 3 Years $ 52
After 5 Years $ 89
After 10 Years $194
</TABLE>
3
<PAGE>
Evergreen Global Opportunities Fund
<TABLE>
<CAPTION>
Annual Operating
Expenses
-----------------
<S> <C>
Management Fees .97%
12b-1 Fees --
Other Expenses .65%
----
Total 1.62%
====
</TABLE>
<TABLE>
<CAPTION>
Example
--------
<S> <C>
After 1 Year $ 16
After 3 Years $ 51
After 5 Years $ 88
After 10 Years $192
</TABLE>
Evergreen International Growth Fund
<TABLE>
<CAPTION>
Annual Operating
Expenses**
-----------------
<S> <C>
Management Fees .75%
12b-1 Fees --
Other Expenses .64%
----
Total 1.39%
====
</TABLE>
<TABLE>
<CAPTION>
Example
--------
<S> <C>
After 1 Year $ 14
After 3 Years $ 44
After 5 Years $ 76
After 10 Years $167
</TABLE>
Evergreen Latin America Fund
<TABLE>
<CAPTION>
Annual Operating
Expenses**
-----------------
<S> <C>
Management Fees .75%
12b-1 Fees --
Other Expenses .71%
----
Total 1.46%
====
</TABLE>
<TABLE>
<CAPTION>
Example
--------
<S> <C>
After 1 Year $ 15
After 3 Years $ 46
After 5 Years $ 80
After 10 Years $175
</TABLE>
- --------
* The annual operating expenses and examples do not reflect certain fee
waivers and expense reimbursements for the most recent fiscal period. Actual
expenses for Class Y shares absent fee waivers and expense reimbursements for
the fiscal period ended October 31, 1997 were as follows:
<TABLE>
<S> <C>
Evergreen Emerging Markets Growth Fund 2.01%
Evergreen International Equity Fund 1.11%
Evergreen Global Leaders Fund 1.72%
</TABLE>
** Class Y shares for Evergreen International Growth Fund were initially
offered to the public on January 9, 1998 and March 1, 1998. Class Y shares
for Evergreen Latin America Fund will be offered to the public on March 1,
1998. Therefore, the above annualized operating expenses have been
estimated for the fiscal year ending October 31, 1998.
From time to time, each Fund's investment adviser may, at its discretion,
reduce or waive its fees or reimburse the Funds for certain of their expenses
in order to reduce their expense ratios. Each Fund's investment adviser may
cease these waivers and reimbursements at any time.
4
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The tables on the following pages present, for each Fund, financial
highlights for a share outstanding throughout each period indicated. The
information in the tables for the fiscal years ended October 31, 1997 for
Evergreen Emerging Markets Growth Fund, Evergreen International Equity Funds
and Evergreen Global Leaders Fund has been audited by Price Waterhouse LLP,
each Fund's independent auditors. The information in the tables for Evergreen
Emerging Markets Growth Fund and Evergreen International Equity Fund for each
of the fiscal periods ended October 31, 1995 and December 31, 1994 was audited
by the Funds' prior auditors. The information in the tables for the fiscal
period ended September 30, 1997 and for the one-month period ended October 31,
1997 for Evergreen Global Opportunities Fund has been audited by KPMG Peat
Marwick LLP, the Fund's current independent auditors. Class Y shares of
Evergreen International Growth Fund and Evergreen Latin America Fund commenced
operations on January 9, 1998 and March 1, 1998, respectively, and are
therefore not presented in the tables below. The tables appear in the Funds'
annual report to shareholders and should be read in conjunction with each
Fund's financial statements and related notes, which also appear, together with
the independent auditors' report, in the Funds' annual report to shareholders.
The Funds' financial statements, related notes and independent auditors' report
are incorporated by reference into the Funds' Statement of Additional
Information.
Further information about a Fund's performance is contained in the Fund's
annual report to shareholders, which may be obtained without charge.
Evergreen Emerging Markets Growth Fund
<TABLE>
<CAPTION>
Class Y Shares
----------------------------------------
Year Ended October 31,
----------------------------------------
1997** 1996** 1995#
------------ ------------ --------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of year ................................................... $ 8.48 $ 7.92 $ 8.17
--------- -------- ---------
Income (loss) from investment operations:
Net investment income .............................................................. 0.03 0.01 0.05
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ...................................................................... 1.53 0.62 (0.30)
--------- -------- ---------
Total from investment operations .................................................. 1.56 0.63 (0.25)
--------- -------- ---------
Less distributions from net investment income ....................................... 0 (0.07) 0
--------- -------- ---------
Net asset value, end of year ........................................................ $ 10.04 $ 8.48 $ 7.92
========= ======== =========
Total Return+ ....................................................................... 18.4 % 7.9 % (3.1 %)
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses ........................................................................... 1.50 % 1.50 % 1.48%++
Expenses, excluding indirectly paid expenses ....................................... 1.49 % N/A N/A
Expenses, excluding fee waivers & expense reimbursements ........................... 2.01 % 3.27 % 3.72%++
Net investment income .............................................................. 0.25 % 0.11 % 0.94%++
Portfolio turnover rate ............................................................. 157% 107% 65%
Average commission rate per share ................................................... $ .0019 $ .0103 N/A
Net assets end of year (thousands) .................................................. $ 61,142 $ 28,959 $ 9,355
<CAPTION>
Class Y Shares
---------------
Year Ended
December 31,
1994*
---------------
<S> <C>
Per Share Data:
Net asset value beginning of year ................................................... $ 10.00
----------
Income (loss) from investment operations:
Net investment income .............................................................. 0.01
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ...................................................................... ( 1.84)
----------
Total from investment operations .................................................. ( 1.83)
----------
Less distributions from net investment income ....................................... 0
----------
Net asset value, end of year ........................................................ $ 8.17
==========
Total Return+ ....................................................................... (18.3 %)
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses ........................................................................... 1.53%++
Expenses, excluding indirectly paid expenses ....................................... N/A
Expenses, excluding fee waivers & expense reimbursements ........................... 3.71%++
Net investment income .............................................................. 0.43%++
Portfolio turnover rate ............................................................. 17%
Average commission rate per share ................................................... N/A
Net assets end of year (thousands) .................................................. $ 5,878
</TABLE>
- --------
* For the periods from September 6, 1994 (commencement of operations) to
December 31, 1994.
** Net investment income is based on average monthly shares outstanding for
the periods indicated.
# The Fund changed its year end from December 31 to October 31, effective
October 31, 1995.
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
5
<PAGE>
Evergreen International Equity Fund
<TABLE>
<CAPTION>
Class Y Shares
-----------------------------------------
Year Ended October 31,
-----------------------------------------
1997** 1996** 1995#
------------- ------------ --------------
<S> <C> <C> <C>
Per Share Data:
Net asset value beginning of year ................................................... $ 10.46 $ 9.60 $ 9.50
-------- --------- ---------
Income (loss) from investment operations:
Net investment income .............................................................. 0.10 0.20 0.08
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ...................................................................... 0.72 0.78 0.03
-------- --------- ---------
Total from investment operations .................................................. 0.82 0.98 0.11
-------- --------- ---------
Less distributions from net investment income ....................................... ( 0.17) ( 0.12) (0.01)
-------- --------- ---------
Net asset value, end of year ........................................................ $ 11.11 $ 10.46 $ 9.60
======== ========= =========
Total Return+ ....................................................................... 7.9 % 10.3 % 1.3 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses ........................................................................... 0.99 % 0.99 % 0.94%++
Expenses, excluding indirectly paid expenses ....................................... 0.99 % N/A N/A
Expenses, excluding fee waivers & expense reimbursements ........................... 1.11 % 1.41 % 1.59%++
Net investment income .............................................................. 0.96 % 1.95 % 1.58%++
Portfolio turnover rate ............................................................. 86% 113% 4%
Average commission rate per share ................................................... $ .0187 $ .0068 N/A
Net assets end of year (thousands) .................................................. $ 233,906 $ 124,695 $ 49,575
<CAPTION>
Class Y Shares
--------------
Year Ended
December 31,
1994*
-------------
<S> <C>
Per Share Data:
Net asset value beginning of year ................................................... $ 10.00
---------
Income (loss) from investment operations:
Net investment income .............................................................. 0.02
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ...................................................................... ( 0.51)
---------
Total from investment operations .................................................. ( 0.49)
---------
Less distributions from net investment income ....................................... ( 0.01)
---------
Net asset value, end of year ........................................................ $ 9.50
=========
Total Return+ ....................................................................... ( 5.0 %)
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses ........................................................................... 1.06%++
Expenses, excluding indirectly paid expenses ....................................... N/A
Expenses, excluding fee waivers & expense reimbursements ........................... 1.89%++
Net investment income .............................................................. 1.03%++
Portfolio turnover rate ............................................................. 1%
Average commission rate per share ................................................... N/A
Net assets end of year (thousands) .................................................. $ 23,830
</TABLE>
- --------
* For the period from September 2, 1994 (commencement of operations) to
December 31, 1994.
** Net investment income is based on average monthly shares outstanding for
the periods indicated.
# The Fund changed its year end from December 31 to October 31, effective
October 31, 1995.
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
6
<PAGE>
Evergreen Global Leaders Fund
<TABLE>
<CAPTION>
Class Y Shares
----------------------------
Year Ended October 31,
----------------------------
1997 1996
------------- --------------
<S> <C> <C>
Per Share Data:
Net asset value beginning of year ....................................................... $ 11.91 $ 10.00
-------- ---------
Income (loss) from investment operations: **
Net investment income (loss) ........................................................... 0.03 0.07
Net realized and unrealized gain on investments and foreign currency related 1.78 1.88
-------- ---------
transactions
Total from investment operations ...................................................... 1.81 1.95
-------- ---------
Less distributions from:
Net investment income .................................................................. 0 ( 0.04)
Net realized gain on investments ....................................................... ( 0.01) 0
-------- ---------
Total distributions ................................................................... ( 0.01) ( 0.04)
-------- ---------
Net asset value, end of year ............................................................ $ 13.71 $ 11.91
======== =========
Total Return+ ........................................................................... 15.2 % 19.6 %
Ratios & Supplemental Data:
Ratios to average net assets:
Expenses ............................................................................... 1.64 % 1.47 %++
Expenses, excluding indirectly paid expenses ........................................... 1.64 % N/A
Expenses, excluding fee waivers & expense reimbursements ............................... 1.72 % 2.51 %++
Net investment income .................................................................. 0.23 % 0.62 %++
Portfolio turnover rate ................................................................. 29% 20%
Average commission rate per share ....................................................... $ .0418 $ .0659
Net assets end of year (thousands) ...................................................... $ 35,461 $ 18,607
</TABLE>
- --------
* For the period from June 3, 1996 (commencement of operations) to October 31,
1996.
** Net investment income is based on average monthly shares outstanding for
the periods indicated.
+ Initial sale charge or contingent deferred sales charge is not reflected.
++ Annualized.
7
<PAGE>
Evergreen Global Opportunities Fund
<TABLE>
<CAPTION>
Class Y Shares
----------------------
One-Month
Period Ended
October 31, 1997 (b)
----------------------
<S> <C>
Per Share Data:
Net asset value beginning of period .................................................... $ 25.24
--------
Income from investment operations:
Net investment income ................................................................. 0
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ......................................................................... ( 1.34)
----------
Total from investment operations ..................................................... ( 1.34)
----------
Less distributions from:
Net realized gain on investments ...................................................... 0
----------
Total distributions .................................................................. 0
----------
Net asset value, end of period ......................................................... $ 23.90
==========
Total Return ........................................................................... ( 5.31 %)
Ratio & Supplemental Data:
Ratios to average net assets:
Expenses .............................................................................. 1.62 %(a)
Expenses excluding indirectly paid expenses ........................................... 1.62 %(a)
Net investment loss ................................................................... ( 1.62 %)(a)
Portfolio turnover rate ................................................................ 7%
Average commissions rate paid per share ................................................ $ 0.0019
Net assets end of period (thousands) ................................................... $ 0
<CAPTION>
Class Y Shares
--------------------
January 13, 1997
(Date of Initial
Public Offering) to
September 30, 1997
--------------------
<S> <C>
Per Share Data:
Net asset value beginning of period .................................................... $ 23.05
--------
Income from investment operations:
Net investment income ................................................................. ( 0.28)
Net realized and unrealized gain (loss) on investments and foreign currency related
transactions ......................................................................... 2.47
----------
Total from investment operations ..................................................... 2.19
----------
Less distributions from:
Net realized gain on investments ...................................................... 0
----------
Total distributions .................................................................. 0
----------
Net asset value, end of period ......................................................... $ 25.24
==========
Total Return ........................................................................... 9.50 %
Ratio & Supplemental Data:
Ratios to average net assets:
Expenses .............................................................................. 1.42 %(a)
Expenses excluding indirectly paid expenses ........................................... 1.42 %(a)
Net investment loss ................................................................... ( 1.22 %)(a)
Portfolio turnover rate ................................................................ 72%
Average commissions rate paid per share ................................................ $ 0.0066
Net assets end of period (thousands) ................................................... $ 0
</TABLE>
- --------
(a) Annualized.
(b) The Fund changed its fiscal year end from September 30 to October 31,
effective October 31, 1997.
8
<PAGE>
- --------------------------------------------------------------------------------
DESCRIPTION OF THE FUNDS
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVES AND POLICIES
Each Fund's investment objectives are nonfundamental; as a result a Fund
may change its objectives without a shareholder vote. Each Fund has also
adopted certain fundamental investment policies which are mainly designed to
limit a Fund's exposure to risk. Each Fund's fundamental policies cannot be
changed without a shareholder vote. See the Statement of Additional Information
("SAI") for more information regarding a Fund's fundamental investment policies
or other related investment policies. There can be no assurance that a Fund's
investment objectives will be achieved.
In addition to the investment policies detailed below, each Fund may
employ certain additional investment strategies which are discussed in
"Investment Practices and Restrictions" below.
Evergreen Emerging Markets Growth Fund
The objective of Evergreen Emerging Markets Growth Fund is long-term
capital appreciation. In seeking this objective, the Fund invests in equity
securities of issuers located in emerging markets. The Fund is suitable for
aggressive investors interested in the investment opportunities offered by
securities of issuers located in emerging or developing markets and the
resulting potential for growth opportunities attributable to political change,
economic deregulation and liberalized trade policies.
The Fund invests primarily in a diversified portfolio of equity securities
of issuers located in countries with emerging markets. As used in this
Prospectus, an Emerging Market is any country (i) which is generally considered
to be an emerging or developing country by the International Bank for
Reconstruction and Development (the "World Bank") and the International Finance
Corporation (the "IFC") or by the United Nations, (ii) which is included in the
IFC Investable Index or the Morgan Stanley Capital International Emerging
Markets Index, or (iii) which has a gross national product per capita of $2,000
or less, in each case at the time of the Fund's investment. As a matter of
policy, the Fund will invest at least 65% of the value of its total assets in
equity securities of Emerging Market issuers.
A country will be considered to have an "emerging market" if it has
relatively low gross national product per capita compared to the world's major
economies and the potential for rapid economic growth. Countries with emerging
markets include those that have an emerging stock market (as defined by the
IFC), those with low-to middle income economies (according to the World Bank),
and those listed in World Bank publications as "developing". The Fund will
normally invest in at least six different countries, although it may invest all
of its assets in a single country. At the present time, the Fund has no
intention of investing all of its assets in a single country. The Fund focuses
on equity securities, but may also invest in other types of instruments,
including debt securities.
Evergreen International Equity Fund
The objective of Evergreen International Equity Fund is long-term capital
appreciation. The Fund invests primarily in equity securities of non-U.S.
issuers. The Fund provides investors with a vehicle to pursue investment
opportunities in countries outside the U.S. whose securities markets may
benefit from differing economic and political cycles.
The Fund invests primarily in foreign equity securities that Warburg,
Pincus Counsellors, Inc., the sub-adviser to the Fund, determines through
fundamental analysis to be undervalued compared to other securities in their
industries and countries. As a matter of policy, the Fund will invest at least
65% of the value of its total assets in equity securities of issuers located in
at least three countries outside of the United States, including emerging
markets as described above under "Evergreen Emerging Markets Growth Fund". See
"Special Risk Considerations".
Evergreen Global Leaders Fund
The investment objective of the Evergreen Global Leaders Fund is to
provide long-term capital growth. It will attempt to achieve its objective by
investing primarily in a diversified portfolio of U.S. and non-U.S. equity
securities of companies located in the world's major industrialized countries.
Under normal conditions at least 65% of
9
<PAGE>
the Fund's total assets will consist of global equity securities. The Fund will
make investments in no less than three countries, which may include the United
States. In addition to the United States, the countries in which the Fund may
invest include, but are not limited to, Australia, Austria, Belgium, Canada,
Denmark, Finland, France, Germany, Hong Kong, Italy, Japan, Malaysia,
Netherlands, New Zealand, Norway, Singapore, Spain, Sweden, Switzerland, and
the United Kingdom.
The Fund's investment adviser will attempt to screen the largest companies
in these and other major industrialized countries and cause the Fund to invest,
in the opinion of the Fund's investment adviser, in the 100 best based on
certain qualitative and quantitative criteria. Such companies may include those
with the highest return on equity and consistent earnings growth. They may also
include companies with an established market presence, or which operate in
industries or sectors that have, in the opinion of the Fund's investment
adviser, significant growth prospects. The criteria will be reviewed and
evaluated on an ongoing basis by the Fund's investment adviser.
In determining what constitutes a major industrialized country, the Fund's
investment adviser will look to classifications set forth in the Morgan Stanley
Capital International ("MSCI") Index and the various reports on this subject
disseminated by the World Bank. The Fund's investment adviser will utilize a
series of weighing techniques to insure adequate diversification by country and
industry and attempt to identify the largest companies in each market,
primarily by reference to the market capitalizations published in the MSCI
Index.
Although, as stated above, the Fund expects that investments will be made
in no less than three countries including the United States, the Fund may
invest more than 25% of its total assets in one country. To the extent that the
Fund invests more than 25% of its total assets in the securities of issuers
located in one country, the value of the Fund's shares may be subject to
greater fluctuations due to the lesser degree of diversification across
countries such a policy affords, and the fact that the securities markets of
certain countries may be subject to greater risks and volatility than that
which exists in the United States. See "Special Risk Considerations".
Evergreen Global Opportunities Fund
The investment objective of the Evergreen Global Opportunities Fund is
capital growth. In selecting its investments, the Fund attempts to identify
those companies within various countries and industries that have the best
opportunities for above-average increases in revenues and earnings and strong
prospects for continued revenue growth. In addition, the Fund seeks to identify
those countries and industries where economic and political factors, including
currency movements, are likely to produce above-average growth.
In pursuing its objective, the Fund may invest in securities of United
States ("U.S.") companies and of issuers located in certain foreign countries
with developed markets as well as those with emerging markets and the formerly
communist countries of Eastern Europe and the People's Republic of China. In
its investments in securities of issuers in the U.S. and other countries with
developed securities markets, the Fund seeks to achieve its objective by
investment in equity securities of small to medium sized companies (generally
under $1 billion in market capitalization) that are in a relatively early stage
of development. In its investments in foreign securities, the Fund seeks to
achieve its objective by investing in equity securities of issuers that are
managed and positioned to take advantage of opportunities for above average
increases in revenues and earnings and have strong prospects for continued
revenue growth. For this purpose, countries with emerging markets are generally
those where the per capita income is in the low middle ranges, as determined by
the World Bank.
Under ordinary circumstances, the Fund invests at least 65% of its assets
in securities of issuers located in at least three countries, one of which may
be the U.S. Under ordinary circumstances, the Fund invests at least 65% of its
assets in equity securities.
Some examples of the securities in which the Fund may invest are common
stocks, securities convertible into common stocks or having common stock
characteristics (consisting of rights, warrants and options), preferred stocks,
debt securities convertible into or exchangeable for preferred or common stock,
debt securities of the U.S. and any foreign governments, including their
political subdivisions, debt securities of any international agency (such as
the World Bank, Asian Development Bank or Inter-American Development Bank) and
time deposits with U.S. and foreign banks, and may hold cash and cash
equivalents as discussed below. The Fund's securities and other assets may be
denominated in U.S. currency or currency of any foreign nation. Except as
described above, there are no limitations on the type, size, operating history
or dividend paying record of companies or industries in which the
10
<PAGE>
Fund may invest. The Fund's securities may be traded in the over-the-counter
market as well as being listed on a foreign exchange. The primary investment
criterion used by the Fund in the selection of portfolio securities is that the
securities provide opportunities for capital growth.
Although the Fund intends to invest primarily in common stocks and
securities convertible into common stocks to achieve its objective of growth of
capital, the Fund may invest in any security listed above. For example, because
the market value of debt obligations can be expected to vary inversely with
changes in prevailing interest rates, investing in debt securities may provide
an opportunity for capital appreciation when interest rates are expected to
decline. In addition, the Fund may hold cash and invest in cash equivalents,
including time deposits, for temporary purposes in order to meet redemption
requests or for such periods of time as are necessary to evaluate market
conditions and other factors.
Evergreen International Growth Fund
The primary objective of Evergreen International Growth Fund is long-term
growth of capital. As a secondary objective, the Fund seeks modest income.
In pursuing its investment objectives, the Fund invests primarily in
equity securities issued by well-established, quality companies located in
countries with developed markets. The Fund may invest a portion of its assets
in equity securities of companies located in certain emerging markets countries
and the formerly communist countries of Eastern Europe. Countries with emerging
markets are generally those where the per capita income is in the low to middle
ranges, as determined by the World Bank.
Under normal circumstances, the Fund invests at least 65% of its total
assets in the securities of companies in at least three different countries
(other than the U.S.). For this purpose, a company is deemed to be located in a
particular country if (1) it is organized under the laws of that country; (2)
its principal securities trading market is in that country; (3) it derives at
least 50% of its revenues or profits from goods produced or sold, investments
made, or services performed in that country; or (4) it has at least 50% of its
assets located in that country.
Excluding repurchase agreements, the Fund currently follows a policy of
investing solely in securities of non-U.S. issuers.
While the Fund focuses on equity securities, it may invest a portion of
its assets in debt securities issued by public or private issuers with any
rating or that are unrated; provided, however, that the Fund may only invest up
to 10% of its total assets in debt securities rated below investment grade;
i.e., BB or lower by Standard & Poor's Ratings Group ("S&P") or Ba or lower by
Moody's Investor's Service ("Moody's").
The Fund may also invest in payment-in-kind ("PIK") securities issued by
public or private issuers, as well as preferred stocks, convertible securities,
and rights and warrants to purchase common stocks, when the Fund's investment
adviser determines that such investment is consistent with the Fund's
investment objectives.
Evergreen Latin America Fund
The primary objective of the Evergreen Latin America Fund is long term
growth of capital through investments in equity securities of Latin America
(Mexico and countries in South and Central America).
Under normal circumstances, the Fund invests at least 65% of its assets in
securities of issuers in Latin America. The Fund normally intends to invest a
majority of its total assets in equity securities. The Fund ordinarily
maintains investments in at least three Latin American countries. For the
purposes of this prospectus, the Fund deems Latin America to include Argentina,
Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador,
Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay and
Venezuela. An issuer is deemed to be in Latin America if it is organized under
the laws of a country within that region; its principal securities trading
market is in that region; it derives at least 50% of its revenues or profits
from goods produced or sold, investments made, or services performed in that
region; or it has at least 50% of its assets located in the region.
The equity securities in which the Fund may invest include common stock,
preferred stock (convertible or non-convertible), warrants or rights
convertible into common or preferred stock and partly paid stock.
11
<PAGE>
While the Fund focuses on equity securities, the Fund may invest a portion
of its assets in debt securities issued by Latin American or North American
public or private issuers with any rating or that are unrated. The Fund has
authority to invest up to 49% of its total assets in below investment grade
debt securities, i.e., BB or lower by S&P or Ba or lower by Moody's. The Fund
may also purchase Brady Bonds, which are bonds issued in exchange for
restructured sovereign debt of certain Latin American countries and
collateralized by U.S. government securities and denominated in U.S. dollars.
INVESTMENT PRACTICES AND RESTRICTIONS
Defensive Investments. The Funds may invest without limitation in high quality
money market instruments, such as notes, commercial paper, certificates of
deposit or bankers' acceptances and other bank obligations, or U.S. government
securities and short-term obligations of foreign issuers denominated in U.S.
dollars and traded in the United States if, in the opinion of a Fund's
investment adviser or sub-adviser, market conditions warrant a temporary
defensive investment strategy.
Repurchase Agreements. The Funds may invest in repurchase agreements. A
- ---------------------
repurchase agreement is an agreement by which a Fund purchases a security
(usually U.S. government securities) for cash and obtains a simultaneous
commitment from the seller (usually a bank or broker/dealer) to repurchase the
security at an agreed-upon price and specified future date. The repurchase
price reflects an agreed-upon interest rate for the time period of the
agreement. The Fund's risk is the inability of the seller to pay the
agreed-upon price on the delivery date. However, this risk is tempered by the
ability of the Fund to sell the security in the open market in the case of a
default. In such a case, the Fund may incur costs in disposing of the security
which would increase Fund expenses. The Fund's investment adviser will monitor
the creditworthiness of the firms with which the Fund enters into repurchase
agreements.
Reverse Repurchase Agreements. The Funds may enter into reverse repurchase
- -----------------------------
agreements. A reverse repurchase agreement is an agreement by a Fund to sell a
security and repurchase it at a specified time and price. The Fund could lose
money if the market values of the securities it sold decline below their
repurchase prices. Reverse repurchase agreements may be considered a form of
borrowing, and, therefore, a form of leverage. Leverage may magnify gains or
losses of the Funds.
When-Issued, Delayed-Delivery and Forward Commitment Transactions. Each Fund
- -----------------------------------------------------------------
may enter into transactions whereby it commits to buying a security, but does
not pay for or take delivery of the security until some specified date in the
future. The value of these securities is subject to market fluctuation during
this period and no income accrues to a Fund until settlement. At the time of
settlement, a when-issued security may be valued at less than its purchase
price. When entering into these transactions, the Fund relies on the other
party to consummate the transaction; if the other party fails to do so, the
Fund may be disadvantaged.
Securities Lending. In order to generate additional income, the Funds may lend
- ------------------
portfolio securities on a short-term or long-term basis to broker/dealers,
banks and other institutional borrowers of securities. The Funds will only
enter into loan arrangements with creditworthy borrowers and will receive
collateral in the form of cash or U.S. government securities equal to 100% of
the value of the securities loaned. Loans of securities by the Evergreen Global
Opportunities Fund and Evergreen International Growth Fund will not exceed 15%
of the value of each Fund's total assets. Loans of securities by Evergreen
Emerging Markets Growth Fund, Evergreen International Equity Fund and Evergreen
Global Leaders Fund will not exceed 30% of the value of each Fund's total
assets; and in the case of Evergreen Latin America Fund, loans of securities
will not exceed 25% of the value of the Fund's total assets. There is the risk
that when lending portfolio securities, the securities may not be available to
a Fund on a timely basis and a Fund may, therefore, lose the opportunity to
sell the securities at a desirable price. In addition, in the event that a
borrower of securities would file for bankruptcy or become insolvent,
disposition of the securities may be delayed pending court action.
Investing in Securities of Other Investment Companies. Each Fund may invest in
- -----------------------------------------------------
the securities of other investment companies. As a shareholder of another
investment company, the Fund would pay its portion of the other investment
company's expenses. These expenses would be in addition to the expenses that
the Fund currently bears concerning its own operations and may result in some
duplication of fees.
12
<PAGE>
Borrowing. The Funds may not borrow money except as a temporary measure to
- ---------
facilitate redemption requests or for extraordinary or emergency purposes. The
proceeds from borrowings may be used to facilitate redemption requests which
might otherwise require the untimely disposition of portfolio securities. The
specific limits applicable to borrowing by each Fund are set forth in the
Statement of Additional Information.
Illiquid Securities. Each Fund may invest up to 15% of its net assets in
- -------------------
illiquid securities and other securities which are not readily marketable.
Repurchase agreements with maturities longer than seven days will be included
for the purpose of the foregoing 15% limit. The inability of a Fund to dispose
of illiquid investments readily or at a reasonable price could impair the
Fund's ability to raise cash for redemptions or other purposes.
Restricted Securities. Each Fund may invest in restricted securities, including
- ---------------------
securities eligible for resale pursuant to Rule 144A under the Securities Act
of 1933 (the "1933 Act"). Generally, Rule 144A establishes a safe harbor from
the registration requirements of the 1933 Act for resale by large institutional
investors of securities not publicly traded in the U.S. Each Fund's investment
adviser determines the liquidity of Rule 144A securities according to
guidelines and procedures adopted by Evergreen International Trust's Board of
Trustees. The Board of Trustees monitors the investment adviser's application
of those guidelines and procedures. Securities eligible for resale pursuant to
Rule 144A, which the Fund's investment adviser has determined to be liquid or
readily marketable, are not subject to the 15% limit on illiquid securities.
Options and Futures. The Funds may engage in options and futures transactions.
- -------------------
Options and futures transactions are intended to enable a Fund to manage
market, interest rate or exchange rate risk. The Funds do not use these
transactions for speculation or leverage.
The Funds may attempt to hedge all or a portion of their portfolios
through the purchase of both put and call options on their portfolio securities
and listed put options on financial futures contracts for portfolio securities.
The Funds may also purchase call options on financial futures contracts. The
Funds may write covered call options on their portfolio securities to attempt
to increase their current income. The Funds will maintain their positions in
securities, option rights, and segregated cash subject to puts and calls until
the options are exercised, closed, or have expired. An option position may be
closed out only on an exchange which provides a secondary market for an option
of the same series.
The Funds may write (i.e., sell) covered call and put options. By writing
a call option, a Fund becomes obligated during the term of the option to
deliver the securities underlying the option upon payment of the exercise
price. By writing a put option, a Fund becomes obligated during the term of the
option to purchase the securities underlying the option at the exercise price
if the option is exercised. The Funds also may write straddles (combinations of
covered puts and calls on the same underlying security). The Funds may only
write "covered" options. This means that so long as a Fund is obligated as the
writer of a call option, it will own the underlying securities subject to the
option or, in the case of call options on U.S. Treasury bills, the Fund might
own substantially similar U.S. Treasury bills. A Fund will be considered
"covered" with respect to a put option it writes if, so long as it is obligated
as the writer of the put option, it deposits and maintains with its custodian
in a segregated account liquid assets having a value equal to or greater than
the exercise price of the option.
The principal reason for writing call or put options is to obtain, through
a receipt of premiums, a greater current return than would be realized on the
underlying securities alone. The Funds receive a premium from writing a call or
put option which they retain whether or not the option is exercised. By writing
a call option, the Funds might lose the potential for gain on the underlying
security while the option is open, and by writing a put option the Funds might
become obligated to purchase the underlying securities for more than their
current market price upon exercise.
A futures contract is a firm commitment by two parties: the seller, who
agrees to make delivery of the specific type of instrument called for in the
contract ("going short"), and the buyer, who agrees to take delivery of the
instrument ("going long") at a certain time in the future. Financial futures
contracts call for the delivery of particular debt instruments issued or
guaranteed by the U.S. Treasury or by specified agencies or instrumentalities
of the U.S. government. If a Fund enters into financial futures contracts
directly to hedge its holdings of fixed income securities, it would enter into
contracts to deliver securities at an undetermined price (i.e., "go short") to
protect itself against the possibility that the prices of its fixed income
securities may decline during the Fund's anticipated holding period. A Fund
would agree to purchase securities in the future at a predetermined price
(i.e., "go long") to hedge against a decline in market interest rates.
13
<PAGE>
The Funds may also enter into currency and other financial futures
contracts and write options on such contracts. The Funds intend to enter into
such contracts and related options for hedging purposes. The Funds will enter
into futures on securities, currencies, or (other than Evergreen Global Leaders
Fund) index-based futures contracts in order to hedge against changes in
interest or exchange rates or securities prices. A futures contract on
securities or currencies is an agreement to buy or sell securities or
currencies during a designated month at whatever price exists at that time. A
futures contract on a securities index does not involve the actual delivery of
securities, but merely requires the payment of a cash settlement based on
changes in the securities index. The Funds do not make payment or deliver
securities upon entering into a futures contract. Instead, they put down a
margin deposit, which is adjusted to reflect changes in the value of the
contract and which remains in effect until the contract is terminated.
The Funds may sell or purchase currency and other financial futures
contracts. When a futures contract is sold by a Fund, the profit on the
contract will tend to rise when the value of the underlying securities or
currencies declines and to fall when the value of such securities or currencies
increases. Thus, the Funds sell futures contracts in order to offset a possible
decline in the profit on their securities or currencies. If a futures contract
is purchased by a Fund, the value of the contract will tend to rise when the
value of the underlying securities or currencies increases and to fall when the
value of such securities or currencies declines.
The Funds may enter into closing purchase and sale transactions in order
to terminate a futures contract and may buy or sell put and call options for
the purpose of closing out their options positions. The Funds' ability to enter
into closing transactions depends on the development and maintenance of a
liquid secondary market. There is no assurance that a liquid secondary market
will exist for any particular contract or at any particular time. As a result,
there can be no assurance that the Funds will be able to enter into an
offsetting transaction with respect to a particular contract at a particular
time. If the Funds are not able to enter into an offsetting transaction, the
Funds will continue to be required to maintain the margin deposits on the
contract and to complete the contract according to its terms, in which case
they would continue to bear market risk on the transaction.
Risk Characteristics of Options and Futures. Although options and futures
- -------------------------------------------
transactions are intended to enable the Funds to manage market, exchange, or
interest rate risks, these investment devices can be highly volatile, and the
Funds' use of them can result in poorer performance (i.e., the Funds' returns
may be reduced). The Funds' attempt to use such investment devices for hedging
purposes may not be successful. Successful futures strategies require the
ability to predict future movements in securities prices, interest rates and
other economic factors. When the Funds use financial futures contracts and
options on financial futures contracts as hedging devices, there is a risk that
the prices of the securities subject to the financial futures contracts and
options on financial futures contracts may not correlate perfectly with the
prices of the securities in the Funds' portfolios. This may cause the financial
futures contracts and any related options to react to market changes
differently than the portfolio securities. In addition, a Fund's investment
adviser could be incorrect in its expectations and forecasts about the
direction or extent of market factors, such as interest rates, securities price
movements, and other economic factors. Even if a Fund's investment adviser
correctly predicts interest rate movements, a hedge could be unsuccessful if
changes in the value of a Fund's futures position did not correspond to changes
in the value of its investments. In these events, the Fund may lose money on
the financial futures contracts or the options on financial futures contracts.
It is not certain that a secondary market for positions in financial futures
contracts or for options on financial futures contracts will exist at all
times. Although a Fund's investment adviser will consider liquidity before
entering into financial futures contracts or options on financial futures
contracts, there is no assurance that a liquid secondary market on an exchange
will exist for any particular financial futures contract or option on a
financial futures contract at any particular time. The Funds' ability to
establish and close out financial futures contracts and options on financial
futures contract positions depends on this secondary market. If a Fund is
unable to close out its position due to disruptions in the market or lack of
liquidity, the Fund may lose money on the futures contract or option, and the
losses to the Fund could be significant.
Foreign Investments. Foreign securities may involve additional risks.
- -------------------
Specifically, they may be affected by the strength of foreign currencies
relative to the U.S. dollar, or by political or economic developments in
foreign countries. Accounting procedures and government supervision may be less
stringent than those applicable to U.S. companies. There may be less publicly
available information about a foreign company than about a U.S. company.
Foreign markets may be less liquid or more volatile than U.S. markets and may
offer less protection to investors. It may also be more difficult to enforce
contractual obligations abroad than would be the case in the U.S. because of
differences in the
14
<PAGE>
legal systems. Foreign securities may be subject to foreign taxes, which may
reduce yield, and may be less marketable than comparable U.S. securities. All
these factors are considered by the investment adviser of each Fund before
making any of these types of investments.
Foreign Currency Transactions. As discussed above, the Funds may invest in
- -----------------------------
securities of foreign issuers. When the Funds invest in foreign securities,
they usually will be denominated in foreign currencies, and the Funds
temporarily may hold funds in foreign currencies. Thus, the value of Fund
shares will be affected by changes in exchange rates.
As one way of managing exchange rate risk, in addition to entering into
currency futures contracts, the Funds may enter into forward currency exchange
contracts (agreements to purchase or sell currencies at a specified price and
date). The exchange rate for the transaction (the amount of currency the Funds
will deliver or receive when the contract is completed) is fixed when the Funds
enter into the contract. The Funds usually will enter into these contracts to
stabilize the U.S. dollar value of a security they have agreed to buy or sell.
The Funds intend to use these contracts to hedge the U.S. dollar value of a
security they already own, particularly if the Funds expect a decrease in the
value of the currency in which the foreign security is denominated. Although
the Funds will attempt to benefit from using forward contracts, the success of
their hedging strategy will depend on the investment adviser's ability to
predict accurately the future exchange rates between foreign currencies and the
U.S. dollar. The value of the Funds' investments denominated in foreign
currencies will depend on the relative strength of those currencies and the
U.S. dollar, and the Funds may be affected favorably or unfavorably by changes
in the exchange rates or exchange control regulations between foreign
currencies and the U.S. dollar. Changes in foreign currency exchange rates also
may affect the value of dividends and interest earned, gains and losses
realized on the sale of securities and net investment income and gains, if any,
to be distributed to shareholders by the Funds. Although the Funds do not
currently intend to do so, they may also purchase and sell options related to
foreign currencies. The Funds do not intend to enter into foreign currency
transactions for speculation or leverage.
Hedging/Cross Hedging. A cross hedge is accomplished by entering into a forward
- ---------------------
contract or other arrangement with respect to one foreign currency for the
purpose of hedging against a possible decline in the value of another foreign
currency in which certain of the Fund's portfolio instruments are denominated.
The Funds' investment advisers or sub-advisers may enter into a cross hedge,
rather than hedge directly, in instances where (i) the rates for forward
contracts, options, futures contract or options on futures contracts relating
to the currency in which the cross hedge is effected are more favorable than
rates for similar instruments denominated in the currency that is to be hedged
and (ii) there is a high degree of correlation between the two currencies with
respect to their movement against the U.S. dollar. Cross hedges may be effected
using the various hedging instruments described below. A cross hedge cannot
protect against exchange rate risks perfectly, and if a Fund's investment
adviser or sub-adviser is incorrect in its judgment of future exchange rate
relationships, the Fund could be in a less advantageous position than if such a
hedge had not been established.
SPECIAL RISK CONSIDERATIONS
Risk Characteristics Of Foreign Securities. Investing in securities of foreign
issuers generally involves more risk than investing in a portfolio consisting
solely of securities of domestic issuers for the following reasons: publicly
available information on issuers and securities may be scarce; many foreign
countries do not follow the same accounting, auditing, and financial reporting
standards as are used in the U.S.; market trading volumes may be smaller,
resulting in less liquidity and more price volatility compared to U.S.
securities of comparable quality; there may be less regulation of securities
trading and its participants; the possibility may exist for expropriation,
confiscatory taxation, nationalization, establishment of exchange controls,
political or social instability or negative diplomatic developments; and
dividend or interest withholding may be imposed at the source.
Fluctuations in foreign exchange rates impose an additional level of risk,
possibly affecting the value of the Fund's foreign investments and earnings, as
well as gains and losses realized through trades, and the unrealized
appreciation or depreciation of investments. A Fund may also incur costs when
it shifts assets from one country to another.
Investing in securities of issuers in emerging markets countries involves
exposure to economic systems that are generally less mature and political
systems that are generally less stable than those of developed countries. In
addition, investing in companies in emerging markets countries may also involve
exposure to national policies that
15
<PAGE>
may restrict investment by foreigners and undeveloped legal systems governing
private and foreign investments and private property. The typically small size
of the markets for securities issued by companies in emerging markets countries
and the possibility of a low or nonexistent volume of trading in those
securities may also result in a lack of liquidity and in price volatility of
those securities. Furthermore, investing in securities of companies in the
formerly communist countries of Eastern Europe and the People's Republic of
China involves additional risks to those associated with investments in
companies in non-formerly communist emerging markets countries. Specifically,
those countries could convert back to a single economic system, and the claims
of property owners prior to the expropriation by the communist regime could be
settled in favor of the former property owners, in which case the Portfolio
could lose its entire investment in those countries. These risks are carefully
considered by a Fund's investment adviser prior to the purchase of these
securities.
Fluctuations in foreign exchange rates impose an additional level of risk,
possibly affecting the value of the Fund's foreign investments and earnings, as
well as gains and losses realized through trades, and the unrealized
appreciation or depreciation of investments. The Fund may also incur costs when
it shifts assets from one country to another.
Emerging Markets. The economies of individual emerging countries may differ
- ----------------
favorably or unfavorably from the U.S. economy in such respects as growth of
gross domestic product, rate of inflation, currency depreciation, capital
reinvestment, resource self-sufficiency and balance of payments position.
Further, the economies of developing countries generally are heavily dependent
on international trade and, accordingly, have been, and may continue to be,
adversely affected by trade barriers, exchange controls, managed adjustments in
relative currency values and other protectionist measures imposed or negotiated
by the countries with which they trade. These economies also have been, and may
continue to be, adversely affected by economic conditions in the countries with
which they trade.
Prior governmental approval for foreign investments may be required under
certain circumstances in some emerging countries, and the extent of foreign
investment in certain debt securities and domestic companies may be subject to
limitation in other emerging countries. Foreign ownership limitations also may
be imposed by the charters of individual companies in emerging countries to
prevent, among other concerns, violation of foreign investment limitations.
Repatriation of investment income, capital and the proceeds of sales by
foreign investors may require governmental registration and/or approval in some
emerging countries. A Fund could be adversely affected by delays in, or a
refusal to grant, any required governmental registration or approval for such
repatriation. Any investment subject to such repatriation controls will be
considered illiquid if it appears reasonably likely that this process will take
more than seven days.
With respect to any emerging country, there is the possibility of
nationalization, expropriation or confiscatory taxation, political changes,
governmental regulation, social instability or diplomatic developments
(including war) which could affect adversely the economics of such countries or
the value of the Funds' investments in those countries. In addition, it may be
difficult to obtain and enforce a judgment in a court outside of the U.S.
Risk Characteristics of High Yield Bonds. Evergreen International Growth Fund
- ----------------------------------------
and Evergreen Latin America Fund may invest in high yield bonds. While
investment in high yield bonds provides opportunities to maximize return over
time, investors should be aware of the following risks associated with high
yield bonds:
(1) High yield bonds are rated below investment grade, i.e., BB or lower
by S&P or Ba or lower by Moody's. Securities so rated are considered
predominantly speculative with respect to the ability of the issuer to meet
principal and interest payments.
(2) The lower ratings of these securities reflect a greater possibility
that adverse changes in the financial condition of the issuer or in general
economic conditions, or both, or an unanticipated rise in interest rates may
impair the ability of the issuer to make payments of interest and principal,
especially if the issuer is highly leveraged. Such issuer's ability to meet its
debt obligations may also be adversely affected by specific corporate
developments or the issuer's inability to meet specific projected business
forecasts or the unavailability of additional financing. Also, an economic
downturn or an increase in interest rates may increase the potential for
default by the issuers of these securities.
16
<PAGE>
(3) Their value may be more susceptible to real or perceived adverse
economic, company or industry conditions and publicity than is the case for
higher quality securities.
(4) Their value, like those of other fixed income securities, fluctuates
in response to changes in interest rates, generally rising when interest rates
decline and falling when interest rates rise. For example, if interest rates
increase after a fixed income security is purchased, the security, if sold
prior to maturity, may return less than its cost. The prices of
below-investment grade bonds, however, are generally less sensitive to interest
rate changes than the prices of higher-rated bonds, but are more sensitive to
adverse or positive economic changes or individual corporate developments.
(5) The secondary market for such securities may be less liquid at certain
times than the secondary market for higher quality debt securities, which may
adversely effect (1) the market price of the security, (2) a Fund's ability to
dispose of particular issues and (3) a Fund's ability to obtain accurate market
quotations for purposes of valuing its assets.
(6) Zero coupon bonds and PIKs involve additional risks. Zero coupon bonds
and PIKs do not require the periodic payment of interest. PIKs are debt
obligations that provide that the issuer may, at its option, pay interest on
such bonds in cash or in the form of additional debt obligations. Such
investments may experience greater fluctuation in value due to changes in
interest rates than debt obligations that pay interest currently. Even though
these investments do not pay current interest in cash, a Fund is, nonetheless,
required by tax laws to accrue interest income on such investments and to
distribute such amounts at least annually to shareholders. Thus, a Fund could
be required at times to liquidate investments in order to fulfill its intention
to distribute substantially all of its net income as dividends. A Fund will be
able to purchase additional income producing securities with cash used to make
such distributions, and its current income ultimately may be reduced as a
result.
The generous income sought by a Fund is ordinarily associated with
securities in the lower rating categories of the recognized rating agencies or
with securities that are unrated. Such securities are generally rated BB or
lower by S&P or Ba or lower by Moody's. The Funds may invest in securities that
are rated as low as D by S&P or C- by Moody's. The Funds may also invest in
unrated securities that, in the investment adviser's judgment, offer comparable
yields and risks as securities that are rated. It is possible for securities
rated D or C-, respectively, to have defaulted on payments of principal and/or
interest at the time of investment. The Statement of Additional Information
describes these rating categories. The Funds intend to invest in D rated debt
only in cases when, in the investment adviser's judgment, there is a distinct
prospect of improvement in the issuer's financial position as a result of the
completion of reorganization or otherwise.
The investment adviser considers the ratings of S&P and Moody's assigned
to various securities, but does not rely solely on these ratings because (1)
S&P and Moody's assigned ratings are based largely on historical financial data
and may not accurately reflect the current financial outlook of companies; and
(2) there can be large differences among the current financial conditions of
issuers within the same category.
- --------------------------------------------------------------------------------
ORGANIZATION AND SERVICE PROVIDERS
- --------------------------------------------------------------------------------
ORGANIZATION
Fund Structure. Each Fund is an investment pool, which invests shareholders'
money towards a specified goal. Each Fund is a diversified series of an
open-end management investment company called "Evergreen International Trust"
(the "Trust"). The Trust is a Delaware business trust organized on September
17, 1997.
Board of Trustees. The Trust is supervised by a Board of Trustees that is
- -----------------
responsible for representing the interests of shareholders. The Trustees meet
periodically throughout the year to oversee a Fund's activities, reviewing,
among other things, a Fund's performance and its contractual arrangements with
various service providers.
17
<PAGE>
Shareholder Rights. All shareholders of a given Class participate equally in
- ------------------
dividends and distributions from a Fund's assets and have equal liquidation and
other rights. Shareholders may exchange shares as described under "Exchanges,"
but will have no other preference, conversion, exchange or preemptive rights.
When issued and paid for, your shares will be fully paid and nonassessable.
Shares of each Fund are redeemable, transferable and freely assignable as
collateral. Each Fund may establish additional classes or series of shares.
The Funds do not hold annual shareholder meetings; a Fund may, however,
hold special meetings for such purposes as electing or removing Trustees,
changing fundamental policies and approving investment advisory agreements or
12b-1 plans. In addition, a Fund is prepared to assist shareholders in
communicating with one another for the purpose of convening a meeting to elect
trustees. If any matters are to be voted on by shareholders, each share owned
as of the record date for the meeting would be entitled to one vote for each
dollar of net asset value applicable to each share.
SERVICE PROVIDERS
Investment Adviser. The investment adviser to Evergreen Emerging Markets Growth
Fund and Evergreen International Equity Fund is the Capital Management Group of
First Union National Bank ("FUNB"), a subsidiary of First Union Corporation
("First Union"). First Union and FUNB are located at 201 South College Street,
Charlotte, North Carolina 28288-0630. First Union and its subsidiaries provide
a broad range of financial services to individuals and businesses throughout
the United States.
The investment adviser to Evergreen Global Leaders Fund is Evergreen Asset
Management Corp. ("Evergreen Asset"), which is a wholly-owned subsidiary of
First Union. Evergreen Asset, with its predecessors, has served as investment
adviser to certain Evergreen mutual funds since 1971.
The investment adviser to Evergreen Global Opportunities Fund, Evergreen
International Growth Fund and Evergreen Latin America Fund is Keystone
Investment Management Company ("Keystone"). Keystone has provided investment
advisory and management services to investment companies and private accounts
since it was organized in 1932. Keystone is an indirect subsidiary of FUNB.
FUNB, along with Warburg, respectively, manages investments and supervises
the daily business affairs of Evergreen International Equity Fund and Evergreen
Emerging Markets Growth Fund. As compensation therefor, FUNB is entitled to
receive an annual fee from Evergreen International Equity Fund equal to: .82 of
1% of the first $20 million of average daily net assets; .79 of 1% of the next
$30 million of average daily net assets; .76 of 1% of the next $50 million of
average daily net assets; and .73 of 1% of average daily net assets in excess
of $100 million. From Evergreen Emerging Markets Growth Fund, FUNB is entitled
to receive an annual fee equal to: 1.50% of the first $100 million of average
daily net assets; 1.45% of the next $100 million of average daily net assets;
1.40% of the next $100 million of average daily net assets; and 1.35% of
average daily net assets in excess of $300 million.
As investment adviser to Evergreen Global Leaders Fund, Evergreen Asset
manages the Fund's investments, provides various administrative services and
supervises the Fund's daily business affairs, subject to the authority of the
Trustees. Evergreen Asset is entitled to receive a fee equal to .95 of 1% of
average daily net assets on an annual basis from Evergreen Global Leaders Fund.
Evergreen Global Opportunities Fund pays Keystone a fee, calculated on an
annual basis, equal to 1.00% of the first $200,000,000 of the average daily net
assets, plus 0.95% of the next $200,000,000, plus 0.85% of the next
$200,000,000, plus 0.75% of amounts over $600,000,000.
Evergreen International Growth Fund and Evergreen Latin America Fund pay
Keystone a fee, calculated on an annual basis, equal to 0.75% of the first
$200,000,000 of each Fund's average daily net assets, plus 0.65% of the next
$200,000,000, plus 0.55% of the next $200,000,000, plus 0.45% of amounts over
$600,000,000.
18
<PAGE>
Portfolio Managers. The portfolio manager for Evergreen International Equity
- ------------------
Fund is David Francis, CFA. Mr. Francis joined First Union in 1994 as Managing
Director and Chief Investment Officer. Mr. Francis has over 20 years of equity
analysis and investment experience. He is responsible for directing the
institutional investment organization for the First Union Capital Management
Group. Mr. Francis joined First Union from Federated Investment Counseling, a
division of Federated Investors in Pittsburgh, PA, where he managed equities
for employee benefit and tax-exempt separate accounts and mutual funds since
1978.
The portfolio of the Evergreen Global Leaders Fund is managed by a
committee composed of portfolio management and analytical personnel employed by
Evergreen Asset. The members of this committee include Stephen A. Lieber, who
is Chairman and Co-Chief Executive Officer of Evergreen Asset, and Edwin D.
Miska, who is an analyst with Evergreen Asset. Mr. Lieber and Mr. Miska are
responsible for the day-to-day operations of the Fund. Mr. Lieber is the
founder of Evergreen Asset and has been associated with Evergreen Asset and its
predecessor since 1971. Mr. Miska has been a quantitative analyst with
Evergreen Asset and its predecessor since 1986.
The portfolio manager for the Evergreen Emerging Markets Growth Fund is
Gilman C. Gunn. He has also been the portfolio manager for the Evergreen
International Growth Fund since 1991. Mr. Gunn is currently Senior Vice
President and Chief Investment Officer -- International at Keystone. As head of
the International Team he has 24 years of experience. Prior to joining Keystone
in 1991, Mr. Gunn spent seven years in London heading Citibank's London-based
private client investment department and investment research for Paribas
Capital Markets. He spent two years in Kuwait as Advisor to the Kuwait
International Investment Company and also one year in Thailand. In addition,
Mr. Gunn managed an $800 million bond portfolio for the Chubb Corporation in
New York.
The portfolio managers of the Evergreen Global Opportunities Fund are
Gilman C. Gunn, Senior Vice President and Chief Investment Officer --
International at Keystone since 1991, together with J. Gary Craven, Antonio T.
Docal, Francis X. Claro, Eleanor H. Marsh and Liu-Er Chen.
J. Gary Craven, CFA, joined Keystone in 1996 and is currently a Senior
Vice President, Portfolio Manager and Chief Investment Officer for the Small
Company Stock team for Keystone. With 11 years of investment experience, Mr.
Craven is a specialist in small company growth management. Prior to joining
Keystone in 1996, Mr. Craven was a portfolio manager at Invista Capital
Management, Inc. since 1987.
Antonio Docal is a Vice President and Portfolio Manager at Keystone. Prior
to joining Keystone in 1994, Mr. Docal was Vice President of Docal Associates,
Inc., an import/export and trade company that he co-founded in Woodbridge, CT.
Mr. Docal also worked in the Mergers and Acquisitions Department for the Latin
America region at J.P. Morgan in New York.
Francis Claro, CFA, is a Vice President and Portfolio Manager at Keystone.
Prior to joining Keystone in 1994, he worked as an Investment Officer with the
Inter-American Investment Corporation in New York where he was responsible for
making private equity and debt investments in Argentina, Brazil, Peru and
Uruguay. Mr. Francis also served as a Senior Consultant for the Latin American
area of Price Waterhouse's International Consulting Practice conducting
acquisition work for Price Waterhouse's Central and Eastern European Practice
in London.
Eleanor H. Marsh is a Vice President and Portfolio Manager for the Asian
equity markets at Keystone. Prior to joining Keystone in 1994, Ms. Marsh spent
five years at S.G. Warburg Securities in Tokyo as a Senior Analyst covering
Japanese consumer goods and services companies.
Liu-Er Chen is a Vice President and Portfolio Manager for the Asian equity
markets and foreign pharmaceuticals companies at Keystone. Prior to joining
Keystone in 1995, Mr. Chen spent three years in the U.S. pharmaceuticals
industry at American Cyanamid, Wayne NJ, in the strategic planning area.
Antonio T. Docal and Francis X. Claro have been co-portfolio managers for
the Evergreen Latin America Fund since 1996.
Mr. Docal is a Vice President and Portfolio Manager at Keystone. Prior to
joining Keystone in 1994, Mr. Docal was Vice President of Docal Associates,
Inc., an import/export and trade company that he co-founded in Woodbridge, CT.
Mr. Docal also worked in the Mergers and Acquisitions Department for the Latin
America region at J.P. Morgan in New York.
19
<PAGE>
Francis Claro, CFA, is a Vice President and Portfolio Manager at Keystone.
Prior to joining Keystone in 1994, he worked as an Investment Officer with the
Inter-American Investment Corporation in New York where he was responsible for
making private equity and debt investments in Argentina, Brazil, Peru and
Uruguay. Mr. Francis also served as a Senior Consultant for the Latin American
area of Price Waterhouse's International Consulting Practice conducting
acquisition work for Price Waterhouse's Central and Eastern European Practice
in London.
SUB-ADVISERS
Evergreen Asset has entered into sub-advisory agreements with Lieber &
Company with respect to Evergreen Global Leaders Fund which provide that Lieber
& Company's research department and staff will furnish Evergreen Asset with
information, investment recommendations, advice and assistance, and will be
generally available for consultation on each Fund's portfolio. Lieber & Company
will be reimbursed by Evergreen Asset in connection with the rendering of
services on the basis of the direct and indirect costs of performing such
services. There is no additional charge to Evergreen Global Leaders Fund for
the services provided by Lieber & Company. It is contemplated that Lieber &
Company will, to the extent practicable, effect substantially all of the
portfolio transactions for the Fund on the New York and American Stock
Exchanges. The address of Lieber & Company is 2500 Westchester Avenue,
Purchase, New York 10577. Lieber & Company is an indirect, wholly-owned,
subsidiary of First Union.
Warburg, Pincus Counsellors, Inc. ("Warburg"), the sub-adviser to the
Evergreen International Equity Fund, was incorporated in 1970 and is located at
466 Lexington Avenue, New York, New York. Warburg is a professional investment
counselling firm which provides investment services to investment companies,
employee benefit plans, endowment funds, foundations and other institutions and
individuals, and has broad experience in advising international equity funds.
Warburg is a wholly owned subsidiary of Warburg, Pincus Counsellors G.P.
("Warburg G.P."), a New York general partnership, which itself is controlled by
Warburg, Pincus & Co. ("WP&Co."), also a New York general partnership. Lionel
I. Pincus, the managing partner of WP&Co., may be deemed to control both WP&Co.
and Warburg. Warburg G.P. has no business other than being a holding company of
Warburg and its subsidiaries. As of January 31, 1997, Warburg was managing
approximately $17.9 billion of assets, including approximately $10.7 billion of
investment company assets.
FUNB has agreed to pay Warburg, the subadviser to Evergreen International
Equity Fund, a fee equal to .55% of 1% of the average daily net assets of the
Fund on an annual basis.
Keystone has entered into a Subadvisory Agreement in respect of Evergreen
Emerging Markets Growth Fund with FUNB having its principal place of business
in Charlotte, North Carolina. As Subadviser, Keystone's research department and
staff will provide FUNB, the Fund's investment adviser, with information,
investment recommendations, advice and assistance on the Fund.
For its services as subadviser to Evergreen Emerging Markets Growth Fund,
Keystone receives from FUNB a fee equal to 1% of the first $100 million of
average daily net assets; .95 of 1% of the next $100 million of average daily
net assets; .90 of 1% of the next $100 million of average daily net assets; and
.85% of 1% of average daily net assets in excess of $300 million.
Administrator. Evergreen Investment Services, Inc. ("EIS") serves as
- -------------
administrator to Evergreen Emerging Markets Fund, Evergreen International
Equity Fund and Evergreen Global Leaders Fund, subject to the supervision and
control of the Trustees. EIS provides each Fund with facilities, equipment and
personnel. For its services as administrator, EIS is entitled to receive a fee
based on the aggregate average daily net assets of each Fund at a rate based on
the total assets of all the mutual funds advised by First Union subsidiaries.
The administration fee is calculated in accordance with the following schedule:
<TABLE>
<S> <C>
Administration Fee
- ------------------------
0.050% on the first $7 billion
0.035% on the next $3 billion
0.030% on the next $5 billion
0.020% on the next $10 billion
0.015% on the next $5 billion
0.010% on assets in excess of $30 billion
</TABLE>
20
<PAGE>
EIS also provides facilities, equiptment and personnel to Evergreen Global
Opportunities Fund, Evergreen International Growth Fund, Evergreen Precious
Metals Fund, Evergreen Latin America Fund and Evergreen National Resources Fund
on behalf of the Funds' investment adviser.
Transfer Agent and Dividend Disbursing Agent. Evergreen Service Company
- --------------------------------------------
("ESC"), 200 Berkeley Street, Boston, Massachusetts 02116, acts as each Fund's
transfer agent and dividend disbursing agent. ESC is an indirect, wholly-owned
subsidiary of First Union.
Custodian. State Street Bank and Trust Company, P.O. Box 9021, Boston,
- ---------
Massachusetts 02205-9827 acts as each Fund's custodian.
Principal Underwriter. Evergreen Distributor, Inc. ("EDI"), a subsidiary of The
- ---------------------
BISYS Group, Inc., located at 125 West 55th Street, New York, New York 10019,
is the principal underwriter of each Fund.
- --------------------------------------------------------------------------------
PURCHASE AND REDEMPTION OF SHARES
- --------------------------------------------------------------------------------
HOW TO BUY SHARES
Class Y shares are offered at net asset value without a front-end sales
charge or a contingent deferred sales load. Class Y shares are only offered to
(1) persons who at or prior to December 31, 1994, owned shares in a mutual fund
advised by Evergreen Asset Management Corp. ("Evergreen Asset"), (2) certain
institutional investors and (3) investment advisory clients of FUNB, Evergreen
Asset, Keystone or their affiliates.
Eligible investors may purchase Class Y shares of any of the Funds through
broker-dealers, banks or other financial intermediaries, or directly through
EDI. In addition, you may purchase Class Y shares of any of the Funds by
mailing to that Fund, c/o Evergreen Service Company, P.O. Box 2121, Boston,
Massachusetts 02106-2121, a completed Application and a check payable to the
Fund. You may also telephone 1-800-343-2898 to obtain the number of an account
to which you can wire or electronically transfer funds and then send in a
completed Application. The minimum initial investment is $1,000, which may be
waived in certain situations. Subsequent investments in any amount may be made
by check, by wiring federal funds, by direct deposit or by an electronic funds
transfer.
There is no minimum amount for subsequent investments. Investments of $25
or more are allowed under the Systematic Investment Plan. See the Application
for more information. Only Class Y shares are offered through this Prospectus
(see "General Information" -- "Other Classes of Shares").
How the Funds Value their Shares. The net asset value of each Class of shares
- --------------------------------
of a Fund is calculated by dividing the value of the amount of the Fund's net
assets attributable to that Class by the number of outstanding shares of that
Class. Shares are valued each day the New York Stock Exchange (the "Exchange")
is open as of the close of regular trading (currently 4:00 p.m. Eastern time).
The securities in a Fund are valued at their current market value determined on
the basis of market quotations or, if such quotations are not readily
available, such other methods as a Fund's Trustees believe would accurately
reflect fair value. Non-dollar denominated securities will be valued as of the
close of the Exchange at the closing price of such securities in their
principal trading markets.
Additional Purchase Information. As a condition of this offering, if a purchase
- -------------------------------
is canceled due to nonpayment or because an investor's check does not clear,
the investor will be responsible for any loss a Fund or a Fund's investment
adviser incurs. If such investor is an existing shareholder, a Fund may redeem
shares from an investor's account to reimburse the Fund or its investment
adviser for any loss. In addition, such investors may be prohibited or
restricted from making further purchases in any of the Evergreen funds. The
Funds will not accept third party checks other than those payable directly to a
shareholder whose account has been in existence at least thirty days.
HOW TO REDEEM SHARES
You may "redeem" ( i.e., sell) your Class Y shares in a Fund for cash at
their net redemption value on any day the Exchange is open, either directly by
writing to the Fund, c/o ESC, or through your financial intermediary. The
amount you will receive is based on the net asset value adjusted for fractions
of a cent next calculated after a Fund receives your request in proper form.
Proceeds generally will be sent to you within seven days. However, for shares
21
<PAGE>
recently purchased by check, a Fund will not send proceeds until it is
reasonably satisfied that the check has been collected (which may take up to 15
days). Once a redemption request has been telephoned or mailed, it is
irrevocable and may not be modified or canceled.
Redeeming Shares Through Your Financial Intermediary. A Fund must receive
- ----------------------------------------------------
instructions from your financial intermediary before 4:00 p.m. (Eastern time)
for you to receive that day's net asset value. Your financial intermediary is
responsible for furnishing all necessary documentation to a Fund and may charge
you for this service. Certain financial intermediaries may require that you
give instructions earlier than 4:00 p.m. (Eastern time).
Redeeming Shares Directly by Mail or Telephone. Send a signed letter of
- ----------------------------------------------
instruction or stock power form to the Fund, c/o ESC , the registrar, transfer
agent and dividend-disbursing agent for each Fund. Stock power forms are
available from your financial intermediary, ESC, and many commercial banks.
Additional documentation is required for the sale of shares by corporations,
financial intermediaries, fiduciaries and surviving joint owners. Signature
guarantees are required for all redemption requests for shares with a value of
more than $50,000. Currently, the requirement for a signature guarantee has
been waived on redemptions of $50,000 or less when the account address of
record has been the same for a minimum period of 30 days. Each Fund and ESC
reserve the right to withdraw this waiver at any time. A signature guarantee
must be provided by a bank or trust company (not a Notary Public), a member
firm of a domestic stock exchange or by other financial institutions whose
guarantees are acceptable under the Securities Exchange Act of 1934 and ESC's
policies.
Shareholders may redeem amounts of $1,000 or more (up to $50,000) from
their accounts by calling the telephone number on the front page of this
Prospectus between the hours of 8:00 a.m. and 6:00 p.m. (Eastern time) each
business day (i.e., any weekday exclusive of days on which the Exchange or
ESC's offices are closed). The Exchange is closed on New Year's Day, Martin
Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day, Independence
Day, Labor Day, Thanksgiving Day and Christmas Day. Redemption requests
received after 4:00 p.m. (Eastern time) will be processed using the net asset
value determined on the next business day. Such redemption requests must
include the shareholder's account name, as registered with a Fund, and the
account number. During periods of drastic economic or market changes,
shareholders may experience difficulty in effecting telephone redemptions. If
you cannot reach a Fund by telephone, you should follow the procedures for
redeeming by mail or through a broker-dealer as set forth herein. The telephone
redemption service is not made available to shareholders automatically.
Shareholders wishing to use the telephone redemption service must complete the
appropriate sections on the Application and choose how the redemption proceeds
are to be paid. Redemption proceeds will either (1) be mailed by check to the
shareholder at the address in which the account is registered or (2) be wired
to an account with the same registration as the shareholder's account in a Fund
at a designated commercial bank.
In order to insure that instructions received by ESC are genuine when you
initiate a telephone transaction, you will be asked to verify certain criteria
specific to your account. At the conclusion of the transaction, you will be
given a transaction number confirming your request, and written confirmation of
your transaction will be mailed the next business day. Your telephone
instructions will be recorded. Redemptions by telephone are allowed only if the
address and bank account of record have been the same for a minimum period of
30 days. Each Fund reserves the right at any time to terminate, suspend, or
change the terms of any redemption method described in this Prospectus, except
redemption by mail, and to impose fees.
Except as otherwise noted, the Funds, ESC and EDI will not assume
responsibility for the authenticity of any instructions received by any of them
from a shareholder in writing, over the Evergreen Express Line, or by
telephone. ESC will employ reasonable procedures to confirm that instructions
received over the Evergreen Express Line or by telephone are genuine. The
Funds, ESC and EDI will not be liable when following instructions received over
the Evergreen Express Line or by telephone that ESC reasonably believes are
genuine.
Evergreen Express Line. The Evergreen Express Line offers you specific fund
- ----------------------
account information and price and yield quotations as well as the ability to do
account transactions, including investments, exchanges and redemptions. You may
access the Evergreen Express Line by dialing toll free 1-800-346-3858 on any
touch-tone telephone, 24 hours a day, seven days a week.
General. The sale of shares is a taxable transaction for federal income tax
- -------
purposes. The Funds may temporarily suspend the right to redeem their shares
when (1) the Exchange is closed, other than customary weekend and holiday
closings; (2) trading on the Exchange is restricted; (3) an emergency exists
and the Funds cannot dispose of
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<PAGE>
their investments or fairly determine their value; or (4) the Securities and
Exchange Commission ("SEC") so orders. The Funds reserve the right to close an
account that through redemption has fallen below $1,000 and has remained so for
30 days. Shareholders will receive 60 days' written notice to increase the
account value to at least $1,000 before the account is closed. The Funds have
elected to be governed by Rule 18f-1 under the 1940 Act pursuant to which each
Fund is obligated to redeem shares solely in cash, up to the lesser of $250,000
or 1% of a Fund's total net assets, during any 90 day period for any one
shareholder.
EXCHANGE PRIVILEGE
How To Exchange Shares. You may exchange some or all of your Class Y shares for
shares of the same class in the other Evergreen funds through your financial
intermediary by calling or writing to ESC or by using the Evergreen Express
Line as described above. Once an exchange request has been telephoned or
mailed, it is irrevocable and may not be modified or canceled. Exchanges will
be made on the basis of the relative net asset values of the shares exchanged
next determined after an exchange request is received. An exchange which
represents an initial investment in another Evergreen fund is subject to the
minimum investment and suitability requirements of each Fund.
Each of the Evergreen funds has different investment objectives and
policies. For complete information, a prospectus of the fund into which an
exchange will be made should be read prior to the exchange. An exchange order
must comply with the requirement for a redemption or repurchase order and must
specify the dollar value or number of shares to be exchanged. An exchange is
treated for federal income tax purposes as a redemption and purchase of shares
and may result in the realization of a capital gain or loss. Shareholders are
limited to five exchanges per calendar year, with a maximum of three per
calendar quarter. This exchange privilege may be modified or discontinued at
any time by the Fund upon 60 days' notice to shareholders and is only available
in states in which shares of the fund being acquired may lawfully be sold.
Exchanges Through Your Financial Intermediary. A Fund must receive exchange
- ---------------------------------------------
instructions from your financial intermediary before 4:00 p.m. (Eastern time)
for you to receive that day's net asset value. Your financial intermediary is
responsible for furnishing all necessary documentation to a Fund and may charge
you for this service.
Exchanges by Telephone and Mail. Exchange requests received by a Fund after
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4:00 p.m. (Eastern time) will be processed using the net asset value determined
at the close of the next business day. During periods of drastic economic or
market changes, shareholders may experience difficulty in effecting telephone
exchanges. You should follow the procedures outlined below for exchanges by
mail if you are unable to reach ESC by telephone. If you wish to use the
telephone exchange service you should indicate this on the Application. As
noted above, each Fund will employ reasonable procedures to confirm that
instructions for the redemption or exchange of shares communicated by telephone
are genuine. A telephone exchange may be refused by a Fund or ESC if it is
believed advisable to do so. Procedures for exchanging Fund shares by telephone
may be modified or terminated at any time. Written requests for exchanges
should follow the same procedures outlined for written redemption requests in
the section entitled "How to Redeem Shares"; however, no signature guarantee is
required.
SHAREHOLDER SERVICES
The Funds offer the following shareholder services. For more information
about these services or your account, contact your financial intermediary, ESC
or call the toll-free number on the front page of this Prospectus. Some
services are described in more detail in the application.
Systematic Investment Plan. Under a Systematic Investment Plan, you may invest
- --------------------------
as little as $25 per month to purchase shares of a Fund with no minimum initial
investment required.
Telephone Investment Plan. You may make investments into an existing account
- -------------------------
electronically in amounts of not less than $100 or more than $10,000 per
investment. Telephone investment requests received by 4:00 p.m. (Eastern time)
will be credited to a shareholder's account the day the request is received.
Systematic Withdrawal Plan. When an account of $10,000 or more is opened or
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when an existing account reaches that size, you may participate in the
Systematic Withdrawal Plan by filling out the appropriate part of the
application. Under this Plan, you may receive (or designate a third party to
receive) a monthly or quarterly fixed-withdrawal payment in a stated amount of
at least $75 and may be as much as 1.0% per month or 3.0% per quarter of the
total
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<PAGE>
net asset value of the Fund shares in your account when the Plan was opened.
Fund shares will be redeemed as necessary to meet withdrawal payments. All
participants must elect to have their dividends and capital gain distributions
reinvested automatically.
Automatic Reinvestment Plan. For the convenience of investors, all dividends
- ---------------------------
and distributions are automatically reinvested in full and fractional shares of
a Fund at the net asset value per share at the close of business on the record
date, unless otherwise requested by a shareholder in writing. If the transfer
agent does not receive a written request for subsequent dividends and/or
distributions to be paid in cash at least three full business days prior to a
given record date, the dividends and/or distributions to be paid to a
shareholder will be reinvested.
Dollar Cost Averaging. Through dollar cost averaging you can invest a fixed
- ---------------------
dollar amount each month or each quarter in any Evergreen fund. This results in
more shares being purchased when the selected fund's net asset value is
relatively low and fewer shares being purchased when the fund's net asset value
is relatively high and may result in a lower average cost per share than a less
systematic investment approach.
Prior to participating in dollar cost averaging, you must establish an
account in an Evergreen fund. You should designate on the application (1) the
dollar amount of each monthly or quarterly investment you wish to make and (2)
the fund in which the investment is to be made. Thereafter, on the first day of
the designated month, an amount equal to the specified monthly or quarterly
investment will automatically be redeemed from your initial account and
invested in shares of the designated fund.
Two Dimensional Investing. You may elect to have income and capital gains
- -------------------------
distributions from any Class Y Evergreen fund shares you own automatically
invested to purchase the same class of shares of any other Evergreen fund. You
may select this service on your Application and indicate the Evergreen fund(s)
into which distributions are to be invested.
Tax Sheltered Retirement Plans. The Funds have various retirement plans
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available to eligible investors, including Individual Retirement Accounts
(IRAs); Rollover IRAs; Simplified Employee Pension Plans (SEPs); Savings
Incentive Match Plan for Employees (SIMPLEs); Tax Sheltered Annuity Plans;
403(b)(7) Plans; 401(k) Plans; Keogh Plans; Profit-Sharing Plans; Medical
Savings Accounts; Pension and Target Benefit and Money Purchase Plans. For
details, including fees and application forms, call toll free 1-800-247-4075 or
write to ESC.
BANKING LAWS
The Glass-Steagall Act and other banking laws and regulations presently
prohibit member banks of the Federal Reserve System ("Member Banks") or their
non-bank affiliates from sponsoring, organizing, controlling, or distributing
the shares of registered open-end investment companies such as the Funds. Such
laws and regulations also prohibit banks from issuing, underwriting or
distributing securities in general. However, under the Glass-Steagall Act and
such other laws and regulations, a Member Bank or an affiliate thereof may act
as investment adviser, transfer agent or custodian to a registered open-end
investment company and may also act as agent in connection with the purchase of
shares of such an investment company upon the order of its customer. FUNB and
its affiliates are subject to and in compliance with the aforementioned laws
and regulations.
Changes to applicable laws and regulations or future judicial or
administrative decisions could result in FUNB or its affiliates being prevented
from continuing to perform the services required under the investment advisory
contract or from acting as agent in connection with the purchase of shares of
the Funds by its customers. If FUNB or its affiliates were prevented from
continuing to provide the services called for under the investment advisory
agreement, it is expected that the Trustees would identify, and call upon the
Fund's shareholders to approve, a new investment adviser. If this were to
occur, it is not anticipated that the shareholders of a Fund would suffer any
adverse financial consequences.
24
<PAGE>
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OTHER INFORMATION
- --------------------------------------------------------------------------------
DIVIDENDS, DISTRIBUTIONS AND TAXES
Each Fund intends to distribute its investment company taxable income
annually and net realized capital gains at least annually. Shareholders receive
Fund distributions in the form of additional shares of that class of shares
upon which the distribution is based or, at the shareholder's option, in cash.
Shareholders of a Fund who have not opted to receive cash prior to the payable
date for any dividend from net investment income or the record date for any
capital gains distribution will have the number of such shares determined on
the basis of the Fund's net asset value per share computed at the end of that
day after adjustment for the distribution. Net asset value is used in computing
the number of shares in both capital gains and income distribution investments.
Account statements and/or checks, as appropriate, will be mailed within
seven days after a Fund pays a distribution. Unless the Fund receives
instructions to the contrary before the record or payable date, as the case may
be, it will assume that a shareholder wishes to receive that distribution and
future capital gains and income distributions in shares. Instructions continue
in effect until changed in writing.
Each Fund intends to qualify as a regulated investment company under the
Internal Revenue Code of 1986, as amended (the "Code"). While so qualified, it
is expected that a Fund will not be required to pay any federal income taxes on
that portion of its investment company taxable income and any net realized
capital gains it distributes to shareholders. The Code imposes a 4%
nondeductible excise tax on regulated investment companies, such as the Funds,
to the extent they do not meet certain distribution requirements by the end of
each calendar year. The Funds anticipate meeting such distribution
requirements.
Any taxable dividend declared in October, November or December to
shareholders of record in such a month and paid by the following January 31
will be includable in the taxable income of shareholders as if paid on December
31 of the year in which the dividend was declared.
A Fund may be subject to foreign withholding taxes which would reduce the
yield on its investments. Tax treaties between certain countries and the U.S.
may reduce or eliminate such taxes. Shareholders of a Fund who are subject to
U.S. federal income tax may be entitled, subject to certain rules and
limitations, to claim a federal income tax credit or deduction for foreign
income taxes paid by the Fund. See the SAI for additional details. A Fund's
transactions in options, futures and forward contracts may be subject to
special tax rules. These rules can affect the amount, timing and
characteristics of distributions to shareholders.
Each Fund is required by federal law to withhold 31% of reportable
payments (which may include dividends, capital gains distributions (if any) and
redemptions) paid to certain shareholders. In order to avoid this backup
withholding requirement, each investor must certify on the application, or on a
separate form supplied by the Funds' transfer agent, that the investor's social
security or taxpayer identification number is correct and that the investor is
not currently subject to backup withholding or is exempt from backup
withholding.
Each Fund intends to distribute its net capital gains as capital gains
dividends. Shareholders should treat such dividends as long-term capital gains.
A Fund will designate capital gains distributions as such by a written notice
mailed to each shareholder no later than 60 days after the close of the Fund's
taxable year. If a shareholder receives a capital gain dividend and holds his
shares for six months or less, then any allowable loss on disposition of such
shares will be treated as a long-term capital loss to the extent of such
capital gain dividend.
The foregoing discussion of federal income tax consequences is based on
tax laws and regulations in effect on the date of this Prospectus and is
subject to change by legislative or administrative action. As the foregoing
discussion is for general information only, you should also review the
discussion of "Additional Tax Information" contained in the SAI. In addition,
you should consult your own tax adviser as to the tax consequences of
investments in a Fund, including the application of state and local taxes which
may be different from the federal income tax consequences described above.
25
<PAGE>
GENERAL INFORMATION
Portfolio Turnover. The estimated annual portfolio turnover rate for a Fund is
not expected to exceed 100%. The portfolio turnover rate for Evergreen Emerging
Markets Growth Fund, Evergreen International Growth Fund and Evergreen Latin
America Fund was in excess of 100% for their most recent fiscal year. However,
the estimated annual portfolio turnover rate is not expected to exceed 200% for
each such fund. A portfolio turnover rate of 100% would occur if all of a
Fund's portfolio securities were replaced in one year. The portfolio turnover
rate experienced by each Fund directly affects the transaction costs relating
to the purchase and sale of securities which each Fund bears directly. A high
rate of portfolio turnover will increase such costs. See the SAI for further
information regarding the practices of each Fund affecting portfolio turnover.
Portfolio Transactions. Consistent with the Rules of Conduct of the National
- ----------------------
Association of Securities Dealers, Inc., and subject to seeking best price and
execution, a Fund may consider sales of its shares as a factor in the selection
of dealers to enter into portfolio transactions with a Fund.
Other Classes of Shares. Each Fund currently offers four classes of shares,
- -----------------------
Class A, Class B, Class C and Class Y, and may in the future offer additional
classes. Class Y shares are the only class of shares offered by this Prospectus
and are only available to (1) persons who at or prior to December 31, 1994,
owned shares in a mutual fund advised by Evergreen Asset, (2) certain
institutional investors and (3) investment advisory clients of FUNB, Evergreen
Asset, Keystone or their affiliates. Investors should telephone (800) 343-2898
to obtain more information on other classes of shares.
Performance Information. The Funds may quote their "total return" or "yield"
- -----------------------
for specified periods in advertisements, reports, or other communications to
shareholders. Total return and yield are computed separately for each Class of
shares. Performance data for one or more Classes may be included in any
advertisement or sales literature using performance data of a Fund.
Yield is a way of showing the rate of income a Fund earns on its
investments as a percentage of the Fund's share price. The Fund's yield is
calculated according to accounting methods that are standardized by the SEC for
all stock and bond funds. Because yield accounting methods differ from the
method used for other accounting purposes, a Fund's yield may not equal its
distribution rate, the income paid to your account or the income reported in a
Fund's financial statements. To calculate yield, a Fund takes the interest and
dividend income it earned from its portfolio of investments (as defined by the
SEC formula) for a 30-day period (net of expenses), divides it by the average
number of shares entitled to receive dividends, and expresses the result as an
annualized percentage rate based on a Fund's share price at the end of the
30-day period. This yield does not reflect gains or losses from selling
securities.
Total returns are based on the overall dollar or percentage change in the
value of a hypothetical investment in a Fund. A Fund's total return shows its
overall change in value including changes in share prices and assumes all the
Fund's distributions are reinvested. A cumulative total return reflects a
Fund's performance over a stated period of time. An average annual total return
reflects the hypothetical annually compounded return that would have produced
the same cumulative total return if a Fund's performance had been constant over
the entire period. Because average annual total returns tend to smooth out
variations in a Fund's return, you should recognize that they are not the same
as actual year-by-year results. To illustrate the components of overall
performance, a Fund may separate its cumulative and average annual total
returns into income results and realized and unrealized gain or loss.
Comparative performance information may also be used from time to time in
advertising or marketing each Fund's shares, including data from Lipper
Analytical Services, Inc., Morningstar and other industry publications. The
Funds may also advertise in items of sales literature an "actual distribution
rate" which is computed by dividing the total ordinary income distributed
(which may include the excess of short-term capital gains over losses) to
shareholders for the latest twelve month period by the maximum public offering
price per share on the last day of the period. Investors should be aware that
past performance may not be reflective of future results.
In marketing a Fund's shares, information may be provided that is designed
to help individuals understand their investment goals and explore various
financial strategies. Such information may include publications describing
general principles of investing, such as asset allocation, diversification,
risk tolerance, and goal setting; a questionnaire designed to help create a
personal financial profile; and an action plan offering investment
alternatives.
26
<PAGE>
The information provided to investors may also include discussions of other
Evergreen funds, products, and services, which may include: retirement
investing; brokerage products and services; the effects of periodic investment
plans and dollar cost averaging; saving for college; and charitable giving. In
addition, the information provided to investors may quote financial or business
publications and periodicals, including model portfolios or allocations, as
they relate to fund management, investment philosophy, and investment
techniques. The materials may also reprint, and use as advertising and sales
literature, articles from Evergreen Events, a quarterly magazine provided free
of charge to Evergreen fund shareholders.
Additional Information. This Prospectus and the Statement of Additional
- ----------------------
Information, which has been incorporated by reference herein, do not contain
all the information set forth in the Registration Statements filed by the Trust
with the SEC under the Securities Act of 1933, as amended. Copies of the
Registration Statement may be obtained at a reasonable charge from the SEC or
may be examined, without charge, at the offices of the SEC in Washington, D.C.
27
<PAGE>
Investment Advisers
Capital Management Group of First Union National Bank of North Carolina, 201
South College Street, Charlotte, North Carolina 28288
Evergreen Emerging Markets Growth Fund
Evergreen International Equity Fund
Evergreen Asset Management Corp., 2500 Westchester Avenue, Purchase, New York
10577
Evergreen Global Leaders Fund
Keystone Investment Management Company, 200 Berkeley Street, Boston,
Massachusetts 02116-5034
Evergreen Global Opportunities Fund
Evergreen International Growth Fund
Evergreen Latin America Fund
Custodian
State Street Bank and Trust Company, Box 9021, Boston, Massachusetts 02205-9827
Transfer Agent
Evergreen Service Company, P.O. Box 2121, Boston, Massachusetts 02106-2121
Legal Counsel
Sullivan & Worcester LLP, 1025 Connecticut Avenue, N.W., Washington, D.C. 20036
Independent Auditors
Price Waterhouse LLP, 1177 Avenue of the Americas, New York, New York 10036
KPMG Peat Marwick LLP, 99 High Street, Boston, Massachusetts 02110
Distributor
Evergreen Distributor, Inc., 125 W. 55th Street, New York, New York 10019
66368
536121Rev4
<PAGE>
EVERGREEN INTERNATIONAL TRUST
PART B
STATEMENT OF ADDITIONAL INFORMATION
<PAGE>
EVERGREEN INTERNATIONAL TRUST
200 BERKELEY STREET
BOSTON, MASSACHUSETTS 02116
(800) 633-2700
INTERNATIONAL AND GLOBAL GROWTH FUNDS
STATEMENT OF ADDITIONAL INFORMATION
MARCH 1, 1998
EVERGREEN EMERGING MARKETS GROWTH FUND ("EMERGING MARKETS")
EVERGREEN INTERNATIONAL EQUITY FUND ("INTERNATIONAL EQUITY")
EVERGREEN GLOBAL LEADERS FUND ("GLOBAL LEADERS")
EVERGREEN GLOBAL OPPORTUNITIES FUND ("GLOBAL OPPORTUNITIES")
EVERGREEN INTERNATIONAL GROWTH FUND ("INTERNATIONAL GROWTH")
EVERGREEN PRECIOUS METALS FUND ("PRECIOUS METALS")
EVERGREEN LATIN AMERICA FUND ("LATIN AMERICA")
EVERGREEN NATURAL RESOURCES FUND ("NATURAL RESOURCES")
(EACH A "FUND"; TOGETHER, THE "FUNDS")
EACH FUND IS A SERIES OF AN OPEN-END MANAGEMENT
INVESTMENT COMPANY KNOWN AS EVERGREEN
INTERNATIONAL TRUST (THE "TRUST").
This Statement of Additional Information ("SAI") pertains to all
classes of shares of the Funds listed above. It is not a prospectus and should
be read in conjunction with the Funds' prospectuses dated March 1, 1998, as
supplemented from time to time. The Funds are offered through two separate
prospectuses: one offering Class A, Class B and Class C shares of each Fund and
one offering Class Y shares of each Fund except Natural Resources and Precious
Metals. You may obtain any of these prospectuses from Evergreen Distributor,
Inc.
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TABLE OF CONTENTS
FUND INVESTMENTS............................................................3
General Information..............................................3
Fundamental Policies...............................................9
Investment Guidelines.............................................10
MANAGEMENT OF THE TRUST....................................................11
PRINCIPAL HOLDERS OF FUND SHARES...........................................14
INVESTMENT ADVISORY AND OTHER SERVICES.....................................19
Investment Adviser................................................19
Investment Advisory Agreements....................................21
Distributor.......................................................22
Distribution Plans and Agreements.................................22
Additional Service Providers......................................23
BROKERAGE..................................................................24
Brokerage Commissions............................................ 24
Selection of Brokers..............................................24
Simultaneous Transactions........................................ 25
TRUST ORGANIZATION........................................................ 25
Form of Organization..............................................25
Description of Shares.............................................25
Voting Rights.....................................................25
Limitation of Trustees' Liability.................................26
PURCHASE, REDEMPTION AND PRICING OF SHARES.................................26
How the Funds Offer Shares to the Public..........................26
Contingent Deferred Sales Charge..................................27
Sales Charge Waivers or Reductions................................27
Exchanges.........................................................29
Calculation of Net Asset Value Per Share..........................29
Valuation of Portfolio Securities.................................30
Shareholder Services..............................................30
PRINCIPAL UNDERWRITER......................................................30
ADDITIONAL TAX INFORMATION.................................................31
Requirements for Qualification as a
Registered Investment Company...............................31
Taxes on Distributions............................................31
Taxes on the Sale or Exchange of Fund Shares......................32
Other Tax Considerations..........................................33
FINANCIAL INFORMATION......................................................33
Expenses..........................................................33
Brokerage Commissions Paid........................................35
Computation of Class A Offering Price.............................36
Performance.......................................................37
ADDITIONAL INFORMATION.....................................................39
APPENDIX A................................................................A-1
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FUND INVESTMENTS
GENERAL INFORMATION
The investment objective of each Fund and a description of the
securities in which each Fund may invest are set forth in each Fund's
prospectus. The following expands upon the discussion in the prospectuses
regarding certain investments of the Fund.
U.S. Government Securities
Each Fund may invest in securities issued or guaranteed by U.S.
Government agencies or instrumentalities.
These securities are backed by (1) the discretionary authority of the
U.S. Government to purchase certain obligations of agencies or instrumentalities
or (2) the credit of the agency or instrumentality issuing the obligations.
Some government agencies and instrumentalities may not receive
financial support from the U.S. Government. Examples of such agencies are:
(I) Farm Credit System, including the National Bank for Cooperatives,
Farm Credit Banks and Banks for Cooperatives;
(ii) Farmers Home Administration;
(iii) Federal Home Loan Banks;
(iv) Federal Home Loan Mortgage Corporation;
(v) Federal National Mortgage Association; and
(vi) Student Loan Marketing Association.
Securities Issued by the Government National Mortgage Association ("GNMA")
The Funds may invest in securities issued by the GNMA, a corporation
wholly-owned by the U.S. Government. GNMA securities or "certificates" represent
ownership in a pool of underlying mortgages. The timely payment of principal and
interest due on these securities is guaranteed.
Unlike conventional bonds, the principal on GNMA certificates is not
paid at maturity but over the life of the security in scheduled monthly
payments. While mortgages pooled in a GNMA certificate may have maturities of up
to 30 years, the certificate itself will have a shorter average maturity and
less principal volatility than a comparable 30-year bond.
The market value and interest yield of GNMA certificates can vary due
not only to market fluctuations, but also to early prepayments of mortgages
within the pool. Since prepayment rates vary widely, it is impossible to
accurately predict the average maturity of a GNMA pool. In addition to the
guaranteed principal payments, GNMA certificates may also make unscheduled
principal payments resulting from prepayments on the underlying mortgages.
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Although GNMA certificates may offer yields higher than those available
from other types of U.S. Government securities, they may be less effective as a
means of locking in attractive long- term rates because of the prepayment
feature. For instance, when interest rates decline, prepayments are likely to
increase as the holders of the underlying mortgages seek refinancing. As a
result, the value of a GNMA certificate is not likely to rise as much as the
value of a comparable debt security would in response to same decline. In
addition, these prepayments can cause the price of a GNMA certificate originally
purchased at a premium to decline in price compared to its par value, which may
result in a loss.
When-Issued, Delayed-Delivery and Forward Commitment Transactions
The Funds may purchase securities on a when-issued or delayed delivery
basis and may purchase or sell securities on a forward commitment basis.
Settlement of such transactions normally occurs within a month or more after the
purchase or sale commitment is made.
The Funds may purchase securities under such conditions only with the
intention of actually acquiring them, but may enter into a separate agreement to
sell the securities before the settlement date. Since the value of securities
purchased may fluctuate prior to settlement, a Fund may be required to pay more
at settlement than the security is worth. In addition, the purchaser is not
entitled to any of the interest earned prior to settlement.
Upon making a commitment to purchase a security on a when-issued,
delayed delivery or forward commitment basis, a Fund will hold liquid assets
worth at least the equivalent of the amount due. The liquid assets will be
monitored on a daily basis and adjusted as necessary to maintain the necessary
value.
Purchases made under such conditions are a form of leveraging and may
involve the risk that yields secured at the time of commitment may be lower than
otherwise available by the time settlement takes place, causing an unrealized
loss to the fund. In addition, when a Fund engages in such purchases, it relies
on the other party to consummate the sale. If the other party fails to perform
its obligations, the Fund may miss the opportunity to obtain a security at a
favorable price or yield.
Loans of Securities
To generate income, each Fund may lend portfolio securities to
broker-dealers and other financial institutions. A Fund will require borrowers
to provide collateral in cash or government securities at least equal to the
value of the securities loaned. A Fund may invest such collateral in additional
portfolio securities, such as U.S. Treasury notes, certificates of deposit,
other high-grade, short-term obligations or interest-bearing cash equivalents.
While securities are on loan, the borrower will pay a Fund any income accruing
on the security.
Each Fund may make loans only to borrowers which meet credit standards
set by the Board of Trustees. Income to be earned from the loan must justify the
attendant risks. If a borrower fails financially, a Fund may have difficulty
recovering the securities lent or may lose its right to the collateral.
Each Fund has the right to call a loan and obtain the securities lent
upon giving notice of not more than five business days.
Repurchase Agreements
The Funds may enter into repurchase agreements with entities that are
registered as U.S. Government securities dealers, including member banks of the
Federal Reserve System having at least $1 billion in assets, primary dealers in
U.S. Government securities or other financial institutions believed by the
Adviser (as defined later) to be creditworthy. In a repurchase agreement, a Fund
obtains a security and
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simultaneously commits to return the security to the seller at a set price
(including principal and interest) within period of time usually not exceeding
seven days. The resale price reflects the purchase price plus an agreed upon
market rate of interest which is unrelated to the coupon rate or maturity of the
underlying security. A repurchase agreement involves the obligation of the
seller to pay the agreed upon price, which obligation is in effect secured by
the value of the underlying security.
A Fund or its custodian will take possession of the securities subject
to repurchase agreements, and these securities will be marked to market daily.
To the extent that the original seller does not repurchase the securities from a
Fund, a Fund could receive less than the repurchase price on any sale of such
securities. In the event that such a defaulting seller filed for bankruptcy or
became insolvent, disposition of such securities by the Fund might be delayed
pending court action. Each Fund's Adviser believes that under the regular
procedures normally in effect for custody of the Fund's portfolio securities
subject to repurchase agreements, a court of competent jurisdiction would rule
in favor of the Fund and allow retention or disposition of such securities. The
Funds will only enter into repurchase agreements with banks and other recognized
financial institutions, such as broker-dealers, which are deemed by the
investment adviser to be creditworthy pursuant to guidelines established by the
Board of Trustees.
Reverse Repurchase Agreements
Each Fund may enter into reverse repurchase agreements. These
transactions are similar to borrowing cash. In a reverse repurchase agreement, a
Fund transfers possession of a portfolio instrument to another person, such as a
financial institution, broker, or dealer, in return for a percentage of the
instrument's market value in cash, and agrees that on a stipulated date in the
future the Fund will repurchase the portfolio instrument by remitting the
original consideration plus interest at an agreed upon rate.
The use of reverse repurchase agreements may enable a Fund to avoid
selling portfolio instruments at a time when a sale may be deemed to be
disadvantageous, but the ability to enter into reverse repurchase agreements
does not ensure that the Fund will be able to avoid selling portfolio
instruments at a disadvantageous time.
When effecting reverse repurchase agreements, liquid assets of a Fund,
in a dollar amount sufficient to make payment for the obligations to be
purchased, are segregated at the trade date. These securities are marked to
market daily and maintained until the transaction is settled.
Options
The Funds may buy or sell (i.e., write) put and call options on
securities they hold or intends to acquire. The Funds may also buy and sell
options on financial futures contracts. The Funds will use options as a hedge
against decreases or increases in the value of securities it holds or intends to
acquire. The Funds may purchase put and call options for the purpose of
offsetting previously written put and call options of the same series.
The Funds may write only covered options. With regard to a call option,
this means that a Fund will own, for the life of the option, the securities
subject to the call option. Each Fund will cover put options by holding, in a
segregated account, liquid assets having a value equal to or greater than the
price of securities subject to the put option. If a Fund is unable to effect a
closing purchase transaction with respect to the covered options it has sold, it
will not be able to sell the underlying securities or dispose of assets held in
a segregated account until the options expire or are exercised.
Futures Transactions
Each Fund may enter into currency and other financial futures contracts
and write options on such
23569
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<PAGE>
contracts. Each Fund intends to enter into such contracts and related options
for hedging purposes. Each Fund will enter into futures contracts on securities,
currencies or indices in order to hedge against changes in interest or exchange
rates or securities prices. A futures contract on securities or currencies is an
agreement to buy or sell securities or currencies at a specified price during a
designated month. A futures contract on a securities index does not involve the
actual delivery of securities, but merely requires the payment of a cash
settlement based on changes in the securities index. A Fund does not make
payment or deliver securities upon entering into a futures contract. Instead, it
puts down a margin deposit, which is adjusted to reflect changes in the value of
the contract and which continues until the contract is terminated.
Each Fund may sell or purchase futures contracts. When a futures
contract is sold by a Fund, the value of the contract will tend to rise when the
value of the underlying securities declines and to fall when the value of such
securities or currencies increases. Thus, each Fund sells futures contracts in
order to offset a possible decline in the value of its securities or currencies.
If a futures contract is purchased by a Fund, the value of the contract will
tend to rise when the value of the underlying securities or currencies increases
and to fall when the value of such securities or currencies declines. Each Fund
intends to purchase futures contracts in order to establish what is believed by
the Adviser to be a favorable price and rate of return for securities, or
favorable exchange rate for currencies, the Fund intends to purchase.
Each Fund also intends to purchase put and call options on futures
contracts for hedging purposes. A put option purchased by a Fund would give it
the right to assume a position as the seller of a futures contract. A call
option purchased by a Fund would give it the right to assume a position as the
purchaser of a futures contract. The purchase of an option on a futures contract
requires a Fund to pay a premium. In exchange for the premium, a Fund becomes
entitled to exercise the benefits, if any, provided by the futures contract, but
is not required to take any action under the contract. If the option cannot be
exercised profitably before it expires, a Fund's loss will be limited to the
amount of the premium and any transaction costs.
Each Fund may enter into closing purchase and sale transactions in
order to terminate a futures contract and may sell put and call options for the
purpose of closing out its options positions. A Fund's ability to enter into
closing transactions depends on the development and maintenance of a liquid
secondary market. There is no assurance that a liquid secondary market will
exist for any particular contract or at any particular time. As a result, there
can be no assurance that a Fund will be able to enter into an offsetting
transaction with respect to a particular contract at a particular time. If a
Fund is not able to enter into an offsetting transaction, the Fund will continue
to be required to maintain the margin deposits on the contract and to complete
the contract according to its terms, in which case it would continue to bear
market risk on the transaction.
Although futures and options transactions are intended to enable a Fund
to manage market, interest rate or exchange rate risk, unanticipated changes in
market prices, interest rates or exchange rates could result in poorer
performance than if it had not entered into these transactions. Even if the
Adviser correctly predicts interest or exchange rate movements, a hedge could be
unsuccessful if changes in the value of a Fund's futures position did not
correspond to changes in the value of its investments. This lack of correlation
between a Fund's futures and securities or currencies positions may be caused by
differences between the futures and securities or currencies markets or by
differences between the securities or currencies underlying a Fund's futures
position and the securities or currencies held by or to be purchased for a Fund.
Each Fund's Adviser will attempt to minimize these risks through careful
selection and monitoring of the Fund's futures and options positions.
The Funds do not intend to use futures transactions for speculation or
leverage. Each Fund has the ability to write options on futures, but currently
intends to write such options only to close out options purchased by a Fund.
Each Fund will not change these policies without supplementing the information
in the prospectus and SAI.
23569
6
<PAGE>
The Funds will not maintain open positions in futures contracts it has
sold or call options it has written on futures contracts if, in the aggregate,
the value of the open positions (marked to market) exceeds the current market
value of its securities portfolio plus or minus the unrealized gain or loss on
those open positions, adjusted for the correlation of volatility between the
hedged securities and the futures contracts. If this limitation is exceeded at
any time, each Fund will take prompt action to close out a sufficient number of
open contracts to bring its open futures and options positions within this
limitation.
"Margin" in Futures Transactions
Unlike the purchase or sale of a security, the Funds do not pay or
receive money upon the purchase or sale of a futures contract. Rather, each Fund
is required to deposit an amount of "initial margin" in cash or U.S. Treasury
bills with its custodian (or the broker, if legally permitted). The nature of
initial margin in futures transactions is different from that of margin in
securities transactions in that futures contract initial margin does not involve
the borrowing of funds by a Fund to finance the transactions. Initial margin is
in the nature of a performance bond or good faith deposit on the contract which
is returned to a Fund upon termination of the futures contract, assuming all
contractual obligations have been satisfied.
A futures contract held by a Fund is valued daily at the official
settlement price of the exchange on which it is traded. Each day, a Fund pays or
receives cash, called "variation margin", equal to the daily change in value of
the futures contract. This process is known as "marking to market". Variation
margin does not represent a borrowing or loan by a Fund but is instead
settlement between the Fund and the broker of the amount one would owe the other
if the futures contract expired. In computing its daily net asset value, a Fund
will mark-to-market its open futures positions. The Funds are also required to
deposit and maintain margin when it writes call options on futures contracts.
Foreign Securities
Each Fund may invest in foreign securities or U.S. securities traded in
foreign markets. Permissible investments may consist of obligations of foreign
branches of U.S. banks and of foreign banks, including European certificates of
deposit, European time deposits, Canadian time deposits and Yankee certificates
of deposit, and investments in Canadian commercial paper, foreign securities and
Europaper. These instruments may subject a Fund to investment risks that differ
in some respects from those related to investments in obligations of U.S.
issuers. Such risks include future adverse political and economic developments;
the possible imposition of withholding taxes on interest or other income; the
possible seizure, nationalization, or expropriation of foreign deposits; the
possible establishment of exchange controls or taxation at the source; greater
fluctuations in value due to changes in exchange rates, or the adoption of other
foreign governmental restrictions which might adversely affect the payment of
principal and interest on such obligations. Such investments may also entail
higher custodial fees and sales commissions than domestic investments. Foreign
issuers of securities or obligations are often subject to accounting treatment
and engage in business practices different from those respecting domestic
issuers of similar securities or obligations. Foreign branches of U.S. banks and
foreign banks may be subject to less stringent reserve requirements than those
applicable to domestic branches of U.S. banks.
Foreign Currency Transactions
As one way of managing exchange rate risk, each Fund may enter into forward
currency exchange contracts (agreements to purchase or sell currencies at a
specified price and date). The exchange rate for the transaction (the amount of
currency a Fund will deliver and receive when the contract is completed) is
fixed when a Fund enters into the contract. A Fund usually will enter into these
contracts to stabilize the U.S. dollar value of a security it has agreed to buy
or sell. Each Fund intends to use these contracts to hedge the U.S. dollar value
of a security it already owns, particularly if a Fund expects a decrease in the
23569
7
<PAGE>
value of the currency in which the foreign security is denominated. Although
each Fund will attempt to benefit from using forward contracts, the success of
its hedging strategy will depend on the Adviser's ability to predict accurately
the future exchange rates between foreign currencies and the U.S. dollar. The
value of a Fund's investments denominated in foreign currencies will depend on
the relative strengths of those currencies and the U.S. dollar, and a Fund may
be affected favorably or unfavorably by changes in the exchange rates or
exchange control regulations between foreign currencies and the U.S. dollar.
Changes in foreign currency exchange rates also may affect the value of
dividends and interest earned, gains and losses realized on the sale of
securities and net investment income and gains, if any, to be distributed to
shareholders by each Fund. Each Fund may also purchase and sell options related
to foreign currencies in connection with hedging strategies.
High Yield Bonds (Natural Resources, International Growth and Latin America)
Each Fund may invest in high yield, high risk bonds. While investment
in high yield bonds provides opportunities to maximize return over time,
investors should be aware of the following risks associated with high yield
bonds:
(1) High yield bonds are rated below investment grade, i.e., BB or
lower by Standard & Poor's Ratings Group ("S&P") or Ba or lower by Moody's
Investors Service ("Moody's"). Securities so rated are considered predominantly
speculative with respect to the ability of the issuer to meet principal and
interest payments.
(2) The lower ratings of these securities reflect a greater possibility
that adverse changes in the financial condition of the issuer or in general
economic conditions, or both, or an unanticipated rise in interest rates may
impair the ability of the issuer to make payments of interest and principal,
especially if the issuer is highly leveraged. Such issuer's ability to meet its
debt obligations may also be adversely affected by specific corporate
developments or the issuer's inability tomeet specific projected business
forecasts or the unavailability of additional financing. Also, an economic
downturn or an increase in interest rates may increase the potential for default
by the issuers of these securities.
(3) Their value may be more susceptible to real or perceived adverse
economic, company or industry conditions and publicity than is the case for
higher quality securities.
(4) Their value, like those of other fixed income securities,
fluctuates in response to changes in interest rates, generally rising when
interest rates decline and falling when interest rates rise. For example, if
interest rates increase after a fixed income security is purchased, the
security, if sold prior to maturity, may return less than its cost. The prices
of below-investment grade bonds, however, are generally less sensitive to
interest rate changes than the prices of higher-rated bonds, but are more
sensitive to adverse or positive economic changes o individual corporate
developments.
(5) The secondary market for such securities may be less liquid at
certain times than the secondary market for higher quality debt securities,
which may adversely effect (1) the market price of the security, (2) the Fund's
ability to dispose o particular issues and (3) the Fund's ability to obtain
accurate market quotations for purposes of valuing its assets.
(6) Zero coupon bonds and PIKs involve additional special
considerations. For example, zero coupon bonds pay no interest to holders prior
to maturity of interest. PIKs are debt obligations that provide that the issuer
may, at its option, pay interest on such bonds in cash or in the form of
additional debt obligations. Such investments may experience greater fluctuation
in value due to changes in interest rates than debt obligations that pay
interest currently. Even though these investments do not pay current interest in
cash, the Fund is, nonetheless, required by tax laws to accrue interest income
on such investments and to distribute such amounts at least annually to
shareholders. Thus, the Fund could be required at times to liquidate investments
in order to fulfill its intention to distribute substantially all of its net
23569
8
<PAGE>
income as dividends. The Fund will not be able to purchase additional income
producing securities with cash used to make such distributions, and its current
income ultimately may be reduced as a result.
Each Fund may invest in securities rated as low as D by S&P or C- by
Moody's. Such securities may have defaulted on payments of principal and/or
interest at the time of investment. (Rating categories are described in the
Appendix.) A Fund will invest in debt so rated only when the investment adviser
believes the issuer's financial condition will improve through reorganization or
other measures. Each Fund may also invest in high yield, high risk securities
which are unrated or rated under a different system if a Fund's investment
adviser believes they are comparable to high yield securities in which each Fund
may otherwise invest.
The investment adviser considers the ratings of S&P and Moody's
assigned to various securities, but does not rely solely on these ratings
because (1) S&P and Moody's assigned ratings are based largely on historical
financial data and may not accurately reflect the current financial outlook of
companies; and (2) there can be large differences among the current financial
conditions of issuers within the same category.
FUNDAMENTAL POLICIES
The Funds have adopted the fundamental investment restrictions set
forth below which may not be changed without the vote of a majority of each
Fund's outstanding shares, as defined in the Investment Company Act of 1940, as
amended (the "1940 Act"). Unless otherwise stated, all references to the assets
of a Fund are in terms of current market value.
Diversification
Each Fund may not make any investment that is inconsistent with its
classification as a diversified investment company under the 1940 Act.
Concentration
Each Fund may not concentrate its investments in the securities of
issuers primarily engaged in a particular industry (other than securities issued
or guaranteed by the U.S. Government or its agencies or instrumentalities),
except that (1) Precious Metals will concentrate its investments in industries
related to mining, processing or dealing in gold or other precious metals and
minerals and (2) Latin America will concentrate in the banking, construction,
energy, food and beverage, retail, telecommunications and utility industries.
Issuing Senior Securities
Except as permitted under in the 1940 Act, each Fund may not issue
senior securities.
Borrowing
Each Fund may not borrow money, except to the extent permitted by
applicable law.
Underwriting
Each Fund may not underwrite securities of other issuers, except
insofar as each Fund may be deemed an underwriter in connection with the
disposition of its portfolio securities.
23569
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<PAGE>
Real Estate
Each Fund may not purchase or sell real estate, except that, to the
extent permitted by applicable law, each Fund may invest in (a) securities that
are directly or indirectly secured by real estate, or (b) securities issued by
issuers that invest in real estate.
Commodities
Each Fund may not purchase or sell commodities or contracts on
commodities except to the extent that each Fund may engage in financial futures
contacts and related options and currency contracts and related options and may
otherwise do so in accordance with applicable law, and without registering as a
commodity pool operator under the Commodity Exchange Act.
Loans to Other Persons
Each Fund may not make loans to other persons, except that the Fund may
lend its portfolio securities in accordance with applicable law. The acquisition
of investment securities or other investment instruments shall not be deemed to
be the making of a loan.
INVESTMENT GUIDELINES
Unlike the Fundamental Policies above, the following guidelines may be
changed by the Trust's Board of Trustees without shareholder approval. Unless
otherwise stated, all references to the assets of a Fund are in terms of current
market value.
Diversification
To remain classified as a diversified investment company under the 1940
Act, each Fund must conform with the following: With respect to the 75% of its
total assets, a diversified investment company may not invest more than 5% of
its total assets, determined at market or other fair value at the time of
purchase, in the securities of any one issuer, or invest in more than 10% of the
outstanding voting securities of any one issuer, determined at the time of
purchase. These limitations do not apply to investments in securities issued or
guaranteed by the U.S. Government or its agencies or instrumentalities.
Borrowings
Each Fund may borrow money from banks or enter into reverse repurchase
agreements in an amount up to one third of its total assets. Each Fund may also
borrow an additional 5% of its total assets from banks or others. Each Fund may
borrow only as a temporary measure for extraordinary or emergency purposes. Each
Fund will not purchase securities while borrowings are outstanding except to
exercise prior commitments and to exercise subscription rights. Each Fund may
obtain such short-term credit as may be necessary for the clearance of purchases
and sales of portfolio securities. Each Fund may purchase securities on margin
to the extent permitted by applicable law.
Illiquid and Restricted Securities
Each Fund may not invest more than 15% of its net assets in securities
that are illiquid. A security is illiquid when a Fund cannot dispose of it in
the ordinary course of business within seven days at approximately the value at
which each Fund has the investment on its books.
23569
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<PAGE>
Each Fund may invest in "restricted" securities, i.e., securities
subject to restrictions on resale under federal securities laws. Rule 144A under
the Securities Act of 1933 ("Rule 144A") allows certain restricted securities to
trade freely among qualified institutional investors. Since Rule 144A securities
may have limited markets, the Board of Trustees will determine whether such
securities should be considered illiquid for the purpose of determining a Fund's
compliance with the limit on illiquid securities indicated above. In determine
the liquidity of Rule 144A securities, the Trustees will consider: (1) the
frequency of trades and quotes for the security; (2) the number of dealers
willing to purchase or sell the security and the number of other potential
buyers; (3) dealer undertakings to make a market in the security; and (4) the
nature of the security and the nature of the marketplace trades.
Investment in Other Investment Companies
Each Fund may purchase the shares of other investment companies to the
extent permitted under the 1940 Act. Currently, each Fund may not (1) own more
than 3% of the outstanding voting stock of another investment company, (2)
invest more than 5% of its assets in any single investment company, and (3)
invest more than 10% of its assets in investment companies. However, each Fund
may invest all of its investable assets in securities of a single open-end
management investment company with substantially the same fundamental investment
objectives, policies and limitations as each Fund.
Short Sales
Each Fund may not make short sales of securities or maintain a short
position unless, at all times when a short position is open, it owns an equal
amount of such securities or of securities which, without payment of any further
consideration, are convertible into or exchangeable for securities of the same
issue as, and equal in amount to, the securities sold short. Each Fund may
effect a short sale in connection with an underwriting in which a Fund is a
participant.
MANAGEMENT OF THE TRUST
Set forth below are the Trustees and officers of the Trust and their
principal occupations and some of their affiliations over the last five years.
Unless otherwise indicated, the address for each Trustee and officer is 200
Berkeley Street, Boston, Massachusetts 02116. Each Trustee is also a Trustee of
each of the other Trusts in the Evergreen fund complex, other than Evergreen
Variable Trust of which Messrs. Howell, Salton and Scofield are the only
Trustees.
<TABLE>
<CAPTION>
NAME POSITION WITH TRUST PRINCIPAL OCCUPATIONS FOR LAST FIVE YEARS
- ------------------------------- -------------------------- -------------------------------------------------------------
<S> <C> <C>
Laurence B. Ashkin Trustee Real estate developer and construction consultant;
(DOB: 2/2/28) and President of Centrum Equities and Centrum
Properties, Inc.
Charles A. Austin III Trustee Investment Counselor to Appleton Partners, Inc.; and
(DOB: 10/23/34) former Managing Director, Seaward Management
Corporation (investment advice).
23569
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<PAGE>
NAME POSITION WITH TRUST PRINCIPAL OCCUPATIONS FOR LAST FIVE YEARS
- ------------------------------- -------------------------- -------------------------------------------------------------
K. Dun Gifford Trustee Trustee, Treasurer and Chairman of the Finance
(DOB: 10/12/38) Committee, Cambridge College; Chairman Emeritus and
Director, American Institute of Food and Wine;
Chairman and President, Oldways Preservation and
Exchange Trust (education); former Chairman of the
Board, Director, and Executive Vice President, The
London Harness Company; former Managing Partner,
Roscommon Capital Corp.; former Chief Executive
Officer, Gifford Gifts of Fine Foods; former
Chairman, Gifford, Drescher & Associates
(environmental consult ing); and former Director,
Keystone Investments, Inc.
James S. Howell Chairman of the Former Chairman of the Distribution Foundation for the
(DOB: 8/13/24) Board of Trustees Carolinas; and former Vice President of Lance Inc.
(food manufacturing).
Leroy Keith, Jr. Trustee Chairman of the Board and Chief Executive Officer,
(DOB: 2/14/39) Carson Products Company; Director of Phoenix Total
Return Fund and Equifax, Inc.; Trustee of Phoenix
Series Fund, Phoenix Multi-Portfolio Fund, and The
Phoenix Big Edge Series Fund; and former President,
Morehouse College.
Gerald M. McDonnell Trustee Sales Representative with Nucor-Yamoto, Inc. (steel
(DOB: 7/14/39) producer).
Thomas L. McVerry Trustee Former Vice President and Director of Rexham
(DOB: 8/2/39) Corporation; and former Director of Carolina
Cooperative Federal Credit Union.
William Walt Pettit Trustee Partner in the law firm of William Walt Pettit, P.A.
(DOB: 8/26/55)
David M. Richardson Trustee Vice Chair and former Executive Vice President, DHR
(DOB: 9/14/41) International, Inc. (executive recruitment); former
Senior Vice President, Boyden International Inc.
(executive recruitment); and Director, Commerce and
Industry Association of New Jersey, 411 International,
Inc., and J&M Cumming Paper Co.
Russell A. Salton, III MD Trustee Medical Director, U.S. Health Care/Aetna Health
(DOB: 6/2/47) Services; former Managed Health Care Consultant;
and former President, Primary Physician Care.
Michael S. Scofield Trustee Attorney, Law Offices of Michael S. Scofield.
(DOB: 2/20/43)
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<PAGE>
NAME POSITION WITH TRUST PRINCIPAL OCCUPATIONS FOR LAST FIVE YEARS
- ------------------------------- -------------------------- -------------------------------------------------------------
Richard J. Shima Trustee Former Chairman, Environmental Warranty, Inc.
(DOB: 8/11/39) (insurance agency); Executive Consultant, Drake
Beam Morin, Inc. (executive outplacement); Director
of Connecticut Natural Gas Corporation, Hartford
Hospi tal, Old State House Association, Middlesex
Mutual Assurance Company, and Enhance Financial
Services, Inc.; Chairman, Board of Trustees,
Hartford Graduate Center; Trustee, Greater Hartford
YMCA; former Director, Vice Chairman and Chief
Investment Officer, The Travelers Corporation;
former Trustee, Kingswood-Oxford School; and former
Managing Director and Consultant, Russell Miller,
Inc.
William J. Tomko* President and Senior Vice President and Operations Executive,
(DOB:8/30/58) Treasurer BISYS Fund Services.
Nimish S. Bhatt* Vice President Vice President, Tax, BISYS Fund Services; former
(DOB: 6/6/63) and Assistant Treasurer Assistant Vice President, Evergreen Asset
Management Corp./First Union Bank; former Senior
Tax Consulting/Acting Manager, Investment Companies
Group, Price Waterhouse, LLP, New York.
Bryan Haft* Vice President Team Leader, Fund Administration, BISYS Fund
(DOB: 1/23/65) Services.
D'Ray Moore* Secretary Vice President, Client Services, BISYS Fund Services.
(DOB: 3/30/59)
</TABLE>
*Address: BISYS, 3435 Stelzer Road, Columbus, Ohio 43219-8001
The officers of the Trust are all officers and/or employees of BISYS
Fund Services.
Trustee Compensation
Listed below is the Trustee compensation for the twelve-month period
ended October 31, 1997.
13
<PAGE>
COMPENSATION FROM COMPENSATION FROM
TRUSTEE TRUST TRUST AND FUND
COMPLEX
Laurence B. Ashkin $4,543 $68,600
Charles A. Austin III $1,117 $41,400
K. Dun Gifford $4,362 $38,700
James S. Howell $5,814 $109,868
Leroy Keith Jr. $4,275 $37,800
Gerald M. McDonnell $5,585 $94,750
Thomas L. McVerry $5,418 $99,217
William Walt Pettit $5,464 $96,717
David M. Richardson $4,656 $41,400
Russell A. Salton, III $5,206 $99,447
Michael S. Scofield $5,474 $102,047
Richard J. Shima $4,254 $65,242
PRINCIPAL HOLDERS OF FUND SHARES
As of the date of this SAI, the officers and Trustees of the Trust
owned as a group less than 1% of the outstanding of any class of each Fund.
Set forth below is information with respect to each person who, to each
Fund's knowledge, owned beneficially or of record more than 5% of a class of a
Fund's outstanding shares as of January 30, 1998.
EMERGING MARKETS CLASS A
Trust Company of America 17.086%
FBO HCM
P.O. Box 6503
Englewood, CO 80155
Charles Schwab & Co. Inc. 7.613%
Special Custody Account for the
Exclusive Benefit of Customers
Reinvest Account
Mutual Funds Department
101 Montgomery Street
San Francisco, CA 94104-4122
14
<PAGE>
FTC & Co. 5.579%
Datalynx # 113
P.O. Box 173736
Denver, CO 80217
EMERGING MARKETS CLASS B
None
EMERGING MARKETS CLASS C
RHONA B. MILLER 5.264%
5742 BANCROFT DRIVE
NEW ORLEANS, LA 70122-1314
R. ORMONDE PLATER 5.147%
SEPARATE PROPERTY
1453 ARABELLA STREET
NEW ORLEANS, LA 70115-4277
EMERGING MARKETS CLASS Y
FIRST UNION NATIONAL BANK 66.607%
TRUST ACCOUNTS
ATTN: GINNY BATTEN
11TH FLOOR CMG-1151
301 S. TRYON STREET
CHARLOTTE, NC 28288-0002
FIRST UNION NATIONAL BANK 31.956%
TRUST ACCOUNTS
ATTN: GINNY BATTEN
11TH FLOOR CMG-1151
301 S. TRYON STREET
CHARLOTTE, NC 28288-0002
GLOBAL LEADERS CLASS A
NONE
GLOBAL LEADERS CLASS B
NONE
GLOBAL LEADERS CLASS C
MLPF&S FOR THE SOLE BENEFIT OF ITS 16.621%
CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DRIVE E., 3RD FL
JACKSONVILLE, FL 32246
GLOBAL LEADERS CLASS Y
FIRST UNION NATIONAL BANK/EB/INT 56.099%
CASH ACCOUNT
ATTN: TRUST OPERATIONS FUND GROUP
401 S. TRYON ST., 3RD FL
CMG 1151
CHARLOTTE, NC 28202-1911
15
<PAGE>
FIRST UNION NATIONAL BANK/EB/INT 15.066%
REINVEST ACCOUNT
ATTN: TRUST OPERATIONS FUND GROUP
401 S. TRYON ST., 3RD FL
CMG 1151
CHARLOTTE, NC 28202-1911
GLOBAL OPPORTUNITIES CLASS A
ROFE & CO. 17.053%
C/O STATE STREET BANK & TRUST CO.
FOR SUB ACCOUNT
KOKUSAI SECURITIES CO. LTD.
P.O. BOX 5061
BOSTON, MA 02206-5061
MLPF&S FOR THE SOLE BENEFIT 10.833%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR. E, 3RD FL
JACKSONVILLE, FL 32246-6484
GLOBAL OPPORTUNITIES CLASS B
MLPF&S FOR THE SOLE BENEFIT 24.664%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR. E., 3RD FL
JACKSONVILLE, FL 32246-6484
GLOBAL OPPORTUNITIES CLASS C
MLPF&S FOR THE SOLE BENEFIT 46.337%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR. E., 3RD FL
JACKSONVILLE, FL 32246-6484
GLOBAL OPPORTUNITIES CLASS Y
STATE STREET BANK & TRUST CO. 67.682%
CUST. FOR THE IRA OF
THOMAS V. YOUNG
850 N. DEWITT PL., APT. 22E
CHICAGO, IL 60611-2343
STATE STREET BANK & TRUST CO. 32.170%
IRA FBO
DOUGLAS D. LUNDBERG
765 ORIOLE LANE
HUDSON, WI 54016-7675
INTERNATIONAL EQUITY CLASS A
AMERICAN NATIONAL BANK OF CHICAGO 11.771%
TTEE
LINCOLN GROUP LTD. PARTNERSHIP UNDER
TR
DTD 4-18-96
707 LAKE COOK ROAD
DEERFIELD, IL 60015
16
<PAGE>
INTERNATIONAL EQUITY CLASS B
NONE
INTERNATIONAL EQUITY CLASS C
MLPF&S FOR THE SOLE BENEFIT 21.353%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR. E., 3RD FL
JACKSONVILLE, FL 32246-6484
EMERY JAHNKE 10.107%
2402 LILAC LANE
FARGO, ND 58102-2124
INTERNATIONAL EQUITY CLASS Y
FIRST UNION NATIONAL BANK 56.059%
TRUST ACCOUNTS
ATTN: GINNY BATTEN
11TH FLOOR CMG-1151
301 S. TRYON STREET
CHARLOTTE, NC 28288-0002
FIRST UNION NATIONAL BANK 42.713%
TRUST ACCOUNTS
ATTN: GINNY BATTEN
11TH FLOOR CMG-1151
301 S. TRYON STREET
CHARLOTTE, NC 28288-0002
17
<PAGE>
LATIN AMERICA CLASS A
MLPF&S FOR THE SOLE BENEFIT 27.989%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR., E., 3RD FL
JACKSONVILLE, FL 32246-6484
TRUST COMPANY OF AMERICA 8.316%
FBO HCM
P.O. BOX 6503
LATIN AMERICA CLASS B
MLPF&S FOR THE SOLE BENEFIT 42.315%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR., E., 3RD FL
JACKSONVILLE, FL 32246-6484
LATIN AMERICA CLASS C
MLPF&S FOR THE SOLE BENEFIT 43.638%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR., E., 3RD FL
JACKSONVILLE, FL 32246-6484
NATURAL RESOURCES CLASS A
MLPF&S for the Sole Benefit 23.530%
of its Customers
Attn: Fund Administration
4800 Deer Lake Dr. E., 3rd FL
Jacksonville, FL 32246-6484
NATURAL RESOURCES CLASS B
MLPF&S FOR THE SOLE BENEFIT 38.915%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR. E., 3RD FL
JACKSONVILLE, FL 32246-6484
NATURAL RESOURCES CLASS C
MLPF&S FOR THE SOLE BENEFIT 8.208%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR. E., 3RD FL
JACKSONVILLE, FL 32246-6484
18
<PAGE>
PRECIOUS METALS CLASS A
MLPF&S FOR THE SOLE BENEFIT 9.516%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR. E., 3RD FL
JACKSONVILLE, FL 32246-6484
PRECIOUS METALS CLASS B
MLPF&S FOR THE SOLE BENEFIT 17.920%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR. E., 3RD FL
JACKSONVILLE, FL 32246-6484
PRECIOUS METALS CLASS C
NONE
INTERNATIONAL GROWTH CLASS A
MLPF&S FOR THE SOLE BENEFIT 7.167%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR. E., 3RD FL
JACKSONVILLE, FL 32246-6484
INTERNATIONAL GROWTH CLASS B
MLPF&S FOR THE SOLE BENEFIT 22.677%
OF ITS CUSTOMERS
ATTN: FUND ADMINISTRATION
4800 DEER LAKE DR. E., 3RD FL
JACKSONVILLE, FL 32246-6484
INTERNATIONAL GROWTH CLASS C
NONE
INTERNATIONAL GROWTH CLASS Y
NONE
INVESTMENT ADVISORY AND OTHER SERVICES
INVESTMENT ADVISER
Each Fund has its own investment adviser (the "Adviser"). Each adviser
is a subsidiary of First Union Corporation ("First Union"), a bank holding
company headquartered at 201 South College Street, Charlotte, North Carolina
28288-0630. First Union and its subsidiaries provide a broad range of financial
services to individuals and businesses throughout the United States.
Some of the Funds also have an investment subadviser (the "Subadviser")
or investment consultant (the "Consultant"). Each Fund's Adviser, Subadviser or
Consultant, and the fees paid for their services, are described below.
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<PAGE>
EMERGING MARKETS
The Capital Management Group of First Union National Bank ("FUNB"), at
the same address as First Union, is the Adviser to Emerging Markets. The Fund
pays FUNB an annual percentage of the Fund's average daily net assets as
follows: 1.50% of the first $100 million; 1.45% of the next $100 million; 1.40%
of the next $100 million; and 1.35% of amounts over $300 million. Keystone
Investment Management Company ("Keystone"), 200 Berkeley Street, Boston,
Massachusetts 02116, is the Subadviser to Emerging Markets and receives from
FUNB a percentage of the Fund's average daily net assets as follows: 1.00% of
the first $100 million; 0.95% of the next $100 million; 0.90% of the next $100
million; and 0.85% of amounts over $300 million.
GLOBAL LEADERS
Evergreen Asset Management Corp. ("Evergreen Asset"), 2500 Westchester
Avenue, Purchase, New York 10577, is the Adviser to Global Leaders, which pays
Evergreen Asset an annual fee equal to 0.95% of the Fund's average daily net
assets. Lieber & Company, a First Union subsidiary, is the Subadviser to Global
Leaders. Lieber & Company is reimbursed by Evergreen Asset for the direct and
indirect costs of providing subadvisory services to the Fund.
GLOBAL OPPORTUNITIES
Keystone is the Adviser to Global Opportunities, which pays Keystone an
annual percentage of the Fund's average daily net assets, as follows: 1.00% of
the first $200 million; 0.95% of the next $200 million; 0.85% of the next $200
million; plus 0.75% of amounts over $600 million.
INTERNATIONAL EQUITY
FUNB is the Adviser to International Equity, which pays FUNB an annual
percentage of the Fund's average daily net assets, as follows: 0.82% of the
first $20 million; 0.79% of the next $30 million; 0.76% of the next $50 million
and 0.73% of amounts over $100 million. Warburg, Pincus Counsellors, Inc., 466
Lexington Avenue, New York, New York, is the Subadviser to International Equity
and receives from FUNB a fee equal to 0.55% of the Fund's average daily net
assets.
LATIN AMERICA
Keystone is the Adviser to Latin America, which pays Keystone an annual
percentage of the Fund's average daily net assets, as follows: 0.75% of the
first $200 million; 0.65% of the next $200 million; 0.55% of the next $200
million; plus 0.45% of amounts over $600 million.
NATURAL RESOURCES
Keystone is the Adviser to Natural Resources, which pays Keystone an
annual fee equal to 1.00% of the Fund's average daily net assets. EquitiLink
International Management Limited ("EquitiLink"), Union House, Union Street, St.
Helier, Jersey, Channel Islands, is the Subadviser to Natural Resources.
EquitiLink receives from Keystone a monthly fee equal to (1) 20% of Keystone's
net fee for such month for services rendered in a nondiscretionary capacity,
plus (2) 10% of Keystone's net fee for such month on that portion of the Fund's
assets for which EquitiLink provided services in a discretionary capacity.
20
<PAGE>
PRECIOUS METALS
Keystone is the Adviser to Precious Metals, which pays Keystone an
annual percentage of the Fund's average daily net assets, as follows: 0.75% of
the first $100 million; 0.625% of the next $100 million, plus 0.50% of amounts
over $200 million. Harbor Capital Management Company, Inc., 125 High Street,
Boston, Massachusetts 02110, is the Consultant to Precious Metals and receives
from Keystone an annual fee equal to 0.10% of the Fund's average daily net
assets.
INTERNATIONAL GROWTH
Keystone is the Adviser to International Growth, which pays Keystone an
annual percentage of the aggregate net asset value of the Fund's shares, as
follows: 0.75% of the first $200 million; 0.65% of the next $200 million; 0.55%
of the next $200 million; plus 0.45% of amounts over $600 million, computed as
of the close of business each business day and payable monthly.
INVESTMENT ADVISORY AGREEMENTS
On behalf of each if its Funds, the Trust has entered into an
investment advisory agreement with the Adviser (the "Advisory Agreements") .
Under the Advisory Agreements, and subject to the supervision of the Trust's
Board of Trustees, the Adviser furnishes to the appropriate Fund investment
advisory, management and administrative services, office facilities, and
equipment in connection with its services for managing the investment and
reinvestment of the Fund's assets. The Adviser pays for all of the expenses
incurred in connection with the provision of its services. Each Fund pays for
all charges and expenses, other than those specifically referred to as being
borne by the Adviser, including, but not limited to, (1) custodian charges and
expenses; (2) bookkeeping and auditors' charges and expenses; (3) transfer agent
charges and expenses; (4) fees and expenses of Independent Trustees; (5)
brokerage commissions, brokers' fees and expenses; (6) issue and transfer taxes;
(7) costs and expenses under the Distribution Plan (as applicable) (8) taxes and
trust fees payable to governmental agencies; (9) the cost of share certificates;
(10) fees and expenses of the registration and qualification of such Fund and
its shares with the Securities and Exchange Commission ("SEC") or under state or
other securities laws; (11) expenses of preparing, printing and mailing
prospectuses, SAIs, notices, reports and proxy materials to shareholders of each
Fund; (12) expenses of shareholders' and Trustees' meetings; (13) charges and
expenses of legal counsel for each Fund and for the Independent Trustees of the
Trust on matters relating to such Fund; (14) charges and expenses of filing
annual and other reports with the SEC and other authorities; and all
extraordinary charges and expenses of such Fund. (See also the section entitled
"Financial Information.")
Each Advisory Agreement continues in effect for two years from its
effective date and, thereafter, from year to year only if approved at least
annually by the Board of Trustees of the Trust or by a vote of a majority of
each Fund's outstanding shares. In either case, the terms of the Advisory
Agreement and continuance thereof must be approved by the vote of a majority of
the Independent Trustees (Trustees who are not interested persons of a Fund, as
defined in the 1940 Act) cast in person at a meeting called for the purpose of
voting on such approval. The Advisory Agreements may be terminated, without
penalty, on 60 days' written notice by the Trust's Board of Trustees or by a
vote of a majority of outstanding shares. Each Advisory Agreement will terminate
automatically upon its "assignment" as that term is defined in the 1940 Act.
TRANSACTIONS AMONG ADVISORY AFFILIATES
The Trust has adopted procedures pursuant to Rule 17a-7 of the 1940 Act
("Rule 17a-7 Procedures"). The Rule 17a-7 Procedures permit a Fund to buy or
sell securities from another investment company for which a subsidiary of First
Union is an investment adviser. The Rule 17a-7 Procedures also allow the Funds
to buy or sell securities from other advisory clients for whom a subsidiary of
First Union is an investment adviser. The Funds may engage in such transaction
if they
21
<PAGE>
are equitable to each participant and consistent with each participant's
investment objective.
DISTRIBUTOR
Evergreen Distributor, Inc. (the "Distributor") markets the Funds
through broker-dealers and other financial representatives. Its address is 125
W. 55th Street, New York, NY 10019.
DISTRIBUTION PLANS AND AGREEMENTS
Distribution fees are accrued daily and paid monthly on Class A, Class
B and Class C shares and are charged as class expenses, as accrued. The
distribution fees attributable to the Class B and Class C shares are designed to
permit an investor to purchase such shares through broker-dealers without the
assessment of a front-end sales charge, while at the same time permitting the
Distributor to compensate broker-dealers in connection with the sale of such
shares. In this regard, the purpose and function of the combined contingent
deferred sales charge and distribution services fee on the Class B shares are
the same as those of the front-end sales charge and distribution fee with
respect to the Class A shares in that in each case the sales charge and/or
distribution fee provide for the financing of the distribution of the Fund's
shares.
Under the Rule 12b-1 Distribution Plans that have been adopted by each
Fund with respect to each of its Class A, Class B and Class C shares (each a
"Plan" and collectively, the "Plans"), the Treasurer of the Trust reports the
amounts expended under the Plans for each Fund and the purposes for which such
expenditures were made to the Trustees of the Trust for their review on a
quarterly basis. Also, each Plan provides that the selection and nomination of
the disinterested Trustees are committed to the discretion of such disinterested
Trustees then in office.
The Adviser may from time to time from its own funds or such other
resources as may be permitted by rules of the SEC make payments for distribution
services to the Distributor; the latter may in turn pay part or all of such
compensation to brokers or other persons for their distribution assistance.
Each Plan and Distribution Agreement will continue in effect for
successive twelve-month periods provided, however, that such continuance is
specifically approved at least annually by the Trustees of the Trust or by vote
of the holders of a majority of the outstanding voting securities of that class
and, in either case, by a majority of the Independent Trustees of the Trust who
have no direct or indirect financial interest in the operation of the Plan or
any agreement related thereto.
The Plans permit the payment of fees to brokers and others for
distribution and shareholder-related administrative services and to
broker-dealers, depository institutions, financial intermediaries and
administrators for administrative services as to Class A, Class B and Class C
shares. The Plans are designed to (i) stimulate brokers to provide distribution
and administrative support services to each Fund and holders of Class A, Class B
and Class C shares and (ii) stimulate administrators to render administrative
support services to the Fund and holders of Class A, Class B and Class C shares.
The administrative services are provided by a representative who has knowledge
of the shareholder's particular circumstances and goals, and include, but are
not limited to providing office space, equipment, telephone facilities, and
various personnel including clerical, supervisory, and computer, as necessary or
beneficial to establish and maintain shareholder accounts and records;
processing purchase and redemption transactions and automatic investments of
client account cash balances; answering routine client inquiries regarding Class
A, Class B and Class C shares; assisting clients in changing dividend options,
account designations, and addresses; and providing such other services as the
Fund reasonably requests for its Class A, Class B and Class C shares.
FUNB or its affiliates may finance the payments made by the Distributor
to compensate broker-dealers or other persons for distributing shares of a Fund.
In the event that a Plan or Distribution Agreement is terminated or not
continued with respect to one or more classes of a Fund, (i) no distribution
fees (other than current amounts accrued but not yet paid) would be owed by the
Fund to the Distributor with respect to that class or classes, and (ii) the Fund
would not be obligated to pay the Distributor for any amounts expended under the
Distribution Agreement not previously recovered by the Distributor from
distribution services fees in respect of shares of such class or classes through
deferred sales charges.
All material amendments to any Plan or Distribution Agreement must be
approved by a vote of the Trustees of the Trust or the holders of the Fund's
outstanding voting securities, voting separately by class, and in either case,
by a majority of the disinterested Trustees, cast in person at a meeting called
for the purpose of voting on such approval; and any Plan or Distribution
Agreement may not be amended in order to increase materially the costs that a
particular class of shares of a Fund may bear pursuant to the Plan or
Distribution Agreement without the approval of a majority of the holders of the
outstanding voting shares of the Class affected. Any Plan or Distribution
Agreement may be terminated (i) by a Fund without penalty at any time by a
majority vote of the holders of the outstanding voting securities of the Fund,
voting separately by class or by a majority vote of the disinterested Trustees,
or (ii) by the Distributor. To terminate any Distribution Agreement, any party
must give the other parties 60 days' written notice; to terminate a Plan only,
the Fund need give no notice to the Distributor. Any Distribution Agreement will
terminate automatically in the event of its assignment. (See also the section
entitled "Financial Information.")
ADDITIONAL SERVICE PROVIDERS
Administrator
Evergreen Investment Services, Inc. ("EIS") serves as administrator to
Emerging Markets, International Equity and Global Leaders, subject to the
supervision and control of the Trust's Board of Trustees. EIS provides the Fund
with facilities, equipment and personnel and is entitled to receive a fee from
the Fund based on the total assets of all mutual funds advised by First Union
subsidiaries, as follows: 0.050% of the first $7 billion; 0.035% of the next $3
billion; 0.030% of the next $5 billion; 0.020% of the next $10 billion; 0.015%
of the next $5 billion and 0.010% of amounts over $30 billion.
Transfer Agent
Evergreen Service Company ("ESC"), a subsidiary of First Union, is the
Funds' transfer agent. The transfer agent issues and redeems shares, pays
dividends and performs other duties in connection with the maintenance of
shareholder accounts. The transfer agent's address is Box 2121, Boston,
Massachusetts 02106-2121.
Independent Auditors
KPMG Peat Marwick LLP, 99 High Street, Boston, Massachusetts 02110,
audits the annual financial statements of Global Opportunities, Latin America,
Natural Resources, Precious Metals and International Growth.
Price Waterhouse LLP, 1177 Avenue of the Americas, New York, New York,
10036, audits the annual financial statements of Emerging Markets, Global
Leaders and International Equity.
Custodian
State Street Bank and Trust Company is the Funds' custodian. The bank
keeps custody of each
22
<PAGE>
Fund's securities and cash and performs other related duties. The custodian's
address is 225 Franklin Street, Boston, Massachusetts 02110.
Legal Counsel
Sullivan & Worcester LLP provides legal advice to the Funds. Its
address is 1025 Connecticut Avenue, N.W., Washington, D.C. 20036.
BROKERAGE
Due to regulatory developments affecting the securities exchanges and
brokerage practices, the Board of Trustees may modify or eliminate any of the
following policies.
BROKERAGE COMMISSIONS
Generally, each Fund expects to purchase and sell its equity securities
through brokerage transactions for which commissions are payable. Purchases from
underwriters will include the underwriting commission or concession, and
purchases from dealers serving as market makers will include a dealer's mark-up
or reflect a dealer's mark-down. Where transactions are made in the
over-the-counter market, each Fund will deal with primary market makers unless
more favorable prices are otherwise obtainable.
Each Fund expects to buy and sell its fixed income securities directly
from the issuer or an underwriter or market maker for the securities. Generally,
each Fund will not pay brokerage commissions for such purchases. When a Fund
buys a security from an underwriter, the purchase price will usually include an
underwriting commission or concession. The purchase price for securities bought
from dealers serving as market makers will similarly include the dealer's mark
up or reflect a dealer's mark down. When a Fund executes transactions in the
over-the-counter market, it will deal with primary market makers unless more
favorable prices are otherwise obtainable.
SELECTION OF BROKERS
When buying and selling portfolio securities, each Adviser seeks
brokers who can provide the most benefit to the Fund or Funds for which a trade
is being made. When selecting a broker, an Advisor will primarily look for the
best price at the lowest commission, but in the context of the broker's:
1. ability to provide the best net financial result to the Fund;
2. efficiency in handling trades;
3. ability to trade large blocks of securities;
4. readiness to handle difficult trades;
5. financial strength and stability; and
6. provision of "research services," defined as (a) reports and
analyses concerning issuers, industries, securities and
economic factors and (b) other information useful in making
investment decisions.
Under each Advisory Agreement, each Fund may pay higher brokerage
commissions to a broker providing it with research services, as defined in item
6, above. Pursuant to Section 28(e) of the Securities Exchange Act of 1934, this
practice is permitted if the commission is reasonable in relation to the
brokerage and research services provided. Research services provided by a broker
to an Adviser do not replace, but supplement, the services an Adviser is
required to deliver to a Fund under the Advisory Agreement. It is impracticable
for an Adviser to allocate the cost, value and specific application of such
research services among its clients because research services intended for one
client may indirectly benefit another.
24
<PAGE>
When selecting a broker for portfolio trades, an Adviser may also
consider the amount of Fund shares a broker has sold, subject to the other
requirements described above.
Lieber & Company, an affiliate of Evergreen Asset and a member of the
New York and American Stock Exchanges, will to the extent practicable effect
substantially all of the portfolio transactions for Global Leaders effected on
those exchanges.
SIMULTANEOUS TRANSACTIONS
Each Adviser makes investment decisions for each Fund independently of
decisions made for its other clients. When a security is suitable for the
investment objective of more than one client, it may be prudent for an Adviser
to engage in a simultaneous transaction, that is, buy or sell the same security
for more than one client. Each Adviser strives for an equitable result in such
transactions by using an allocation formula. The high volume involved in some
simultaneous transactions can result in greater value to the Funds, but the
ideal price or trading volume may not always be achieved for an individual Fund.
TRUST ORGANIZATION
FORM OF ORGANIZATION
Each Fund is a series of an open-end management investment company,
known as "Evergreen International Trust" (the "Trust"). The Trust was formed as
a Delaware business trust on September 17, 1997 (the "Declaration of Trust"). A
copy of the Declaration of Trust is on file as an exhibit to the Trust's
Registration Statement, of which this SAI is a part. This summary is qualified
in its entirety by reference to the Declaration of Trust.
DESCRIPTION OF SHARES
The Declaration of Trust authorizes the issuance of an unlimited number
of shares of beneficial interest of series and classes of shares. Each share of
each Fund represents an equal proportionate interest with each other share of
that series and/or class. Upon liquidation, shares are entitled to a pro rata
share of the Trust based on the relative net assets of each series and/or class.
Shareholders have no preemptive or conversion rights. Shares are redeemable and
transferable.
VOTING RIGHTS
Under the terms of the Declaration of Trust, the Trust is not required
to hold annual meetings. At meetings called for the initial election of Trustees
or to consider other matters, each share is entitled to one vote for each dollar
of net asset value applicable to such share. Shares generally vote together as
one class on all matters. Classes of shares of each Fund have equal voting
rights. No amendment may be made to the Declaration of Trust that adversely
affects any class of shares without the approval of a majority of the votes
applicable to the shares of that class. Shares have non-cumulative voting
rights, which means that the holders of more than 50% of the votes applicable to
shares voting for the election of Trustees can elect 100% of the Trustees to be
elected at a meeting and, in such event, the holders of the remaining 50% or
less of the shares voting will not be able to elect any Trustees.
After the initial meeting as described above, no further meetings of
shareholders for the purpose of electing Trustees will be held, unless required
by law, unless and until such time as less than a majority of the Trustees
holding office have been elected by shareholders, at which time, the Trustees
then in office will call a shareholders' meeting for the election of Trustees.
25
<PAGE>
LIMITATION OF TRUSTEES' LIABILITY
The Declaration of Trust provides that a Trustee will not be liable for
errors of judgment or mistakes of fact or law, but nothing in the Declaration of
Trust protects a Trustee against any liability to which he would otherwise be
subject by reason of willful misfeasance, bad faith, gross negligence or
reckless disregard of his duties involved in the conduct of his office.
PURCHASE, REDEMPTION AND PRICING OF SHARES
HOW THE FUNDS OFFER SHARES TO THE PUBLIC
You may buy shares of a Fund through the Distributor, broker-dealers
that have entered into special agreements with the Distributor or certain other
financial institutions. Each Fund offers up to four classes of shares that
differ primarily with respect to sales charges and distribution fees. Depending
upon the class of shares, you will pay an initial sales charge when you buy a
Fund's shares, a contingent deferred sales charge (a "CDSC") when you redeem a
Fund's shares or no sales charges at all.
CLASS A SHARES
With certain exceptions, when you purchase Class A shares you will pay
a maximum sales charge equal to 4.75% of the offering price. (The prospectus
contains a complete table of applicable sales charges and a discussion of sales
charge reductions or waivers that may apply to purchases. See also the section
in this SAI entitled "Financial Information" for an example of the method of
computing the offering price of Class A shares.) If you purchase Class A shares
in the amount of $1 million or more, without an initial sales charge, the Funds
will charge a CDSC of 1.00% if you redeem during the month of your purchase and
the 12-month period following the month of your purchase (see "Contingent
Deferred Sales Charge", below).
CLASS B SHARES
The Funds offer Class B shares at net asset value without an initial
sales charge. With certain exceptions, however, the Funds will charge a CDSC on
shares you redeem within 72 months after the month of your purchase, in
accordance with the following schedule:
REDEMPTION TIMING CDSC RATE
Month of purchase and the first twelve-month period
following the month of purchase................................5.00%
Second twelve-month period following the month of purchase.......4.00%
Third twelve-month period following the month of purchase........3.00%
Fourth twelve-month period following the month of purchase.......3.00%
Fifth twelve-month period following the month of purchase........2.00%
Sixth twelve-month period following the month of purchase........1.00%
Thereafter.......................................................0.00%
Class B shares that have been outstanding for seven years after the
month of purchase will automatically convert to Class A shares without
imposition of a front-end sales charge or exchange fee.
26
<PAGE>
(Conversion of Class B shares represented by stock certificates will require the
return of the stock certificate to ESC.)
Class C Shares
Class C shares are available only through broker-dealers who have
entered into special distribution agreements with the Distributor. The Funds
offer Class C shares at net asset value without an initial sales charge. With
certain exceptions, however, the Funds will charge a CDSC of 1.00% on shares you
redeem within 12-months after the month of your purchase. See "Contingent
Deferred Sales Charge" below.
Class Y Shares (Not offered by Natural Resources and Precious Metals)
No CDSC is imposed on the redemption of Class Y shares. Class Y shares
are not offered to the general public and are available only to (1) persons who
at or prior to December 31, 1994 owned shares in a mutual fund advised by
Evergreen Asset, (2) certain institutional investors and (3) investment advisory
clients of FUNB, Evergreen Asset, Keystone, or their affiliates. Class Y shares
are offered at net asset value without a front-end or back-end sales charge and
do not bear any Rule 12b-1 distribution expenses.
CONTINGENT DEFERRED SALES CHARGE
The Funds charge a CDSC as reimbursement for certain expenses, such as
commissions or shareholder servicing fees, that it has incurred in connection
with the sale of its shares (see "Distribution Plans and Agreements," above). If
imposed, the Funds deduct the CDSC from the redemption proceeds you would
otherwise receive. The CDSC is a percentage of the lesser of (1) the net asset
value of the shares at the time of redemption or (2) the shareholder's original
net cost for such shares. Upon request for redemption, to keep the CDSC a
shareholder must pay as low as possible, a Fund will first seek to redeem shares
not subject to the CDSC and/or shares held the longest, in that order. The CDSC
on any redemption is, to the extent permitted by the National Association of
Securities Dealers, Inc. ("NASD"), paid to the Distributor or its predecessor.
SALES CHARGE WAIVERS OR REDUCTIONS
Reducing Class A Front-end Loads
With a larger purchase, there are several ways that you can combine
multiple purchases of Class A shares in Evergreen funds and take advantage of
lower sales charges.
Combined Purchases
You can reduce your sales charge by combining purchases of Class A
shares of multiple Evergreen funds. 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%).
Rights of Accumulation
You can reduce your sales charge by adding the value of Class A shares
of Evergreen funds you already own to the amount of your next Class A
investment. For example, if you hold Class A shares valued at $99,999 and
purchase an additional $5,000, the sales charge for the $5,000 purchase would be
27
<PAGE>
at the next lower sales charge of 3.75%, rather than 4.75%.
Letter of Intent
You can, by completing the "Letter of Intent" section of the
application, purchase Class A shares over a 13-month period and receive the same
sales charge as if you had invested all the money at once. All purchases of
Class A shares of an Evergreen fund during the period will qualify as Letter of
Intent purchases.
Waiver of Initial Sales Charges
The Funds may sell their shares at net asset value without an initial
sales charge to:
1. purchases of shares in the amount of $1 million or more;
2. a corporate or certain other qualified retirement plan or a
non-qualified deferred compensation plan or a Title 1 tax
sheltered annuity or TSA plan sponsored by an organization
having 100 or more eligible employees (a "Qualifying Plan") or
a TSA plan sponsored by a public educational entity having
5,000 or more eligible employees (an "Educational TSA Plan");
3. institutional investors, which may include bank trust
departments and registered investment advisers;
4. investment advisers, consultants or financial planners who
place trades for their own accounts or the accounts of their
clients and who charge such clients a management, consulting,
advisory or other fee;
5. clients of investment advisers or financial planners who place
trades for their own accounts if the accounts are linked to
master account of such investment advisers or financial
planners on the books of the broker-dealer through whom shares
are purchased;
6. institutional clients of broker-dealers, including retirement
and deferred compensation plans and the trusts used to fund
these plans, which place trades through an omnibus account
maintained with a Fund by the broker-dealer;
7. employees of FUNB, its affiliates, the Distributor, any
broker-dealer with whom the Distributor has entered into an
agreement to sell shares of the Funds, and members of the
immediate families of such employees;
8. certain Directors, Trustees, officers and employees of the
Evergreen funds, the Distributor or their affiliates and to
the immediate families of such persons; or
9. a bank or trust company in a single account in the name of
such bank or trust company as trustee if the initial
investment in or any Evergreen fund made pursuant to this
waiver is at least $500,000 and any commission paid at the
time of such purchase is not more than 1% of the amount
invested.
With respect to items 8 and 9 above, each Fund will only sell shares to
these parties upon the purchasers written assurance that the purchase is for
their personal investment purposes only. Such purchasers may not resell the
securities except through redemption by the Fund. The Funds will not charge any
CDSC on redemptions by such purchasers.
Waiver of CDSCS
28
<PAGE>
The Funds do not impose a CDSC when the shares you are redeeming
represent:
1. an increase in the share value above the net cost of such
shares;
2. certain shares for which the Fund did not pay a commission on
issuance, including shares acquired through reinvestment of
dividend income and capital gains distributions;
3. shares that are in the accounts of a shareholder who has died
or become disabled;
4. a lump-sum distribution from a 401(k) plan or other benefit
plan qualified under the Employee Retirement Income Security
Act of 1974 ("ERISA");
5. an automatic withdrawal from the ERISA plan of a shareholder
who is a least 59 1/2 years old;
6. shares in an account that we have closed because the account
has an aggregate net asset value of less than $1,000;
7. an automatic withdrawal under an Systematic Income Plan of up
to 1.0% per month of your initial account balance;
8. a withdrawal consisting of loan proceeds to a retirement plan
participant;
9. financial hardship withdrawals made by a retirement plan
participant;
10. a withdrawal consisting of returns of excess contributions or
excess deferral amounts made to a retirement plan; or
11. a redemption by an individual participant in a Qualifying Plan
that purchased Class C shares (this waiver is not available in
the event a Qualifying Plan, as a whole, redeems substantially
all of its assets).
EXCHANGES
Investors may exchange shares of a Fund for shares of the same class of
any other Evergreen fund, as described under the section entitled "Exchanges" in
the prospectus. Before you make an exchange, you should read the prospectus of
the Evergreen fund into which you want to exchange. The Trust's Board of
Trustees reserves the right to discontinue, alter or limit the exchange
privilege at any time.
CALCULATION OF NET ASSET VALUE PER SHARE ("NAV")
Each Fund computes its NAV once daily on Monday through Friday, as
described in the prospectus. A Fund will not compute its NAV on the day the
following legal holidays are observed: New Year's Day, Martin Luther King, Jr.
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day.
The NAV of each class of shares of a Fund is calculated by dividing the
value of a Fund's net assets attributable to that class by the number of all
shares issued for that class.
29
<PAGE>
VALUATION OF PORTFOLIO SECURITIES
Current values for a Fund's portfolio securities are determined as
follows:
(1) Securities that are traded on an established exchange or the
over-the-counter National Market System ("NMS") are valued on the basis
of the last sales price on the exchange where primarily traded or on
the NMS prior to the valuation, provided that a sale has occurred.
(2) Securities traded on an established exchange or in the
over-the-counter market for which there has been no sale and other
securities traded in the over-the-counter market are valued at the mean
of the bid and asked prices at the time of valuation.
(3) Short-term investments maturing in more than sixty days, for which
market quotations are readily available, are valued at current market
value.
(4) Short-term investments maturing in sixty days or less are valued at
amortized cost, which approximates market.
(5) Securities, including restricted securities, for which market
quotations are not readily available; listed securities or those on NMS
if, in a Fund's opinion, the last sales price does not reflect a
current market value; and other assets are valued at prices deemed in
good faith to be fair under procedures established by the Board of
Trustees.
SHAREHOLDER SERVICES
As described in the prospectus, a shareholder may elect to receive
their dividends and capital grains distributions in cash instead of shares.
However, ESC will automatically convert a shareholder's distribution option so
that the shareholder reinvests all dividends and distributions in additional
shares when it learns that the postal or other delivery service is unable to
deliver checks or transaction confirmations to the shareholder's address of
record. The Funds will hold the returned distribution or redemption proceeds in
a non interest-bearing account in the shareholder's name until the shareholder
updates their address. No interest will accrue on amounts represented by
uncashed distribution or redemption checks.
PRINCIPAL UNDERWRITER
The Distributor is the principal underwriter for the Trust and with
respect to each class of each Fund. The Trust has entered into a Principal
Underwriting Agreement ("Underwriting Agreement") with the Distributor with
respect to each class of each Fund. The Distributor is a subsidiary of The BISYS
Group, Inc.
The Distributor, as agent, has agreed to use its best efforts to find
purchasers for the shares. The Distributor may retain and employ representatives
to promote distribution of the shares and may obtain orders from broker-dealers,
and others, acting as principals, for sales of shares to them. The Underwriting
Agreement provides that the Distributor will bear the expense of preparing,
printing, and distributing advertising and sales literature and prospectuses
used by it.
All subscriptions and sales of shares by the Distributor are at the
public offering price of the shares, which is determined in accordance with the
provisions of the Trust's Declaration of Trust, By-Laws, current prospectuses
and SAI. All orders are subject to acceptance by the Trust and the Trust
reserves the right, in its sole discretion, to reject any order received. Under
the Underwriting Agreement, the Trust is not liable to anyone for failure to
accept any order.
30
<PAGE>
The Distributor has agreed that it will, in all respects, duly conform
with all state and federal laws applicable to the sale of the shares. The
Distributor has also agreed that it will indemnify and hold harmless the Trust
and each person who has been, is, or may be a Trustee or officer of the Trust
against expenses reasonably incurred by any of them in connection with any
claim, action, suit, or proceeding to which any of them may be a party that
arises out of or is alleged to arise out of any misrepresentation or omission to
state a material fact on the part of the Distributor or any other person for
whose acts the Distributor is responsible or is alleged to be responsible,
unless such misrepresentation or omission was made in reliance upon written
information furnished by the Trust.
The Underwriting Agreement provides that it will remain in effect as
long as its terms and continuance are approved annually (i) by a vote of a
majority of the Trust's Independent Trustees, and (ii) by vote of a majority of
the Trust's Trustees, in each case, cast in person at a meeting called for that
purpose.
The Underwriting Agreement may be terminated, without penalty, on 60
days' written notice by the Board of Trustees or by a vote of a majority of
outstanding shares subject to such agreement. The Underwriting Agreement will
terminate automatically upon its "assignment," as that term is defined in the
1940 Act.
From time to time, if, in the Distributor's judgment, it could benefit
the sales of shares, the Distributor may provide to selected broker-dealers
promotional materials and selling aids, including, but not limited to, personal
computers, related software, and data files.
ADDITIONAL TAX INFORMATION
REQUIREMENTS FOR QUALIFICATION AS A REGISTERED INVESTMENT COMPANY
Each Fund intends to qualify for and elect the tax treatment applicable
to a regulated investment company (a "RIC") under Subchapter M of the Internal
Revenue Code of 1986 (the "Code"). (Such qualification does not involve
supervision of management or investment practices or policies by the Internal
Revenue Service.) In order to qualify as a RIC, a Fund must, among other things,
(i) derive at least 90% of its gross income from dividends, interest, payments
with respect to proceeds from securities loans, gains from the sale or other
disposition of securities or foreign currencies and other income (including
gains from options, futures or forward contracts) derived with respect to its
business of investing in such securities; and (ii) diversify its holdings so
that, at the end of each quarter of its taxable year, (a) at least 50% of the
market value of the Fund's total assets is represented by cash, U.S. Government
securities and other securities limited in respect of any one issuer, to an
amount not greater than 5% of the Fund's total assets and 10% of the outstanding
voting securities of such issuer, and (b) not more than 25% of the value of its
total assets is invested in the securities of any one issuer (other than U.S.
Government securities and securities of other regulated investment companies).
By so qualifying, a Fund is not subject to federal income tax if it timely
distributes its investment company taxable income and any net realized capital
gains. A 4% nondeductible excise tax will be imposed on a Fund to the extent it
does not meet certain distribution requirements by the end of each calendar
year. Each Fund anticipates meeting such distribution requirements.
TAXES ON DISTRIBUTIONS
Distributions will be taxable to shareholders whether made in shares or
in cash. Shareholders electing to receive distributions in the form of
additional shares will have a cost basis for federal income
31
<PAGE>
tax purposes in each share so received equal to the net asset value of a share
of a Fund on the reinvestment date.
To calculate ordinary income for federal income tax purposes,
shareholders must generally include dividends paid by the Fund from its
investment company taxable income (net taxable investment income plus net
realized short-term capital gains, if any). The Fund will include dividends it
receives from domestic corporations when the Fund calculates its gross
investment income. The Fund anticipates that all or a portion of the ordinary
dividends which it pays will qualify for the 70% dividends-received deduction
for corporations. The Fund will inform shareholders of the amounts that so
qualify.
From time to time, the Fund will distribute the excess of its net
long-term capital gains over its short-term capital loss to shareholders (i.e.,
capital gain dividends). For federal tax purposes, shareholders must include
such capital gain dividends when calculating their net long-term capital gains.
Capital gain dividends are taxable as net long-term capital gains to a
shareholder, no matter how long the shareholder has held the shares.
Distributions by a Fund reduce its NAV. A distribution that reduces the
Fund's NAV below a shareholder's cost basis is taxable as described above,
although from an investment standpoint, it is a return of capital. In
particular, if a shareholder buys Fund shares just before the Fund makes a
distribution, when the Fund makes the distribution the shareholder will receive
what is in effect a return of capital. Nevertheless, the shareholder may incur
taxes on the distribution. Therefore, shareholders should carefully consider the
tax consequences of buying Fund shares just before a distribution.
All distributions, whether received in shares or cash, must be reported
by each shareholder on his or her federal income tax return. Each shareholder
should consult a tax adviser to determine the state and local tax implications
of Fund distributions.
If more than 50% of the value of a Fund's total assets at the end of a
fiscal year is represented by securities of foreign corporations and a Fund
elects to make foreign tax credits available to its shareholders, a shareholder
will be required to include in his gross income both cash dividends and the
amount the Fund advises him is his pro rata portion of income taxes withheld by
foreign governments from interest and dividends paid on a Fund's investments.
The shareholder may be entitled, however, to take the amount of such foreign
taxes withheld as a credit against his U.S. income tax, or to treat the foreign
tax withheld as an itemized deduction from his gross income, if that should be
to his advantage. In substance, this policy enables the shareholder to benefit
from the same foreign tax credit or deduction that he would have received if he
had been the individual owner of foreign securities and had paid foreign income
tax on the income therefrom. As in the case of individuals receiving income
directly from foreign sources, the credit or deduction is subject to a number of
limitations.
TAXES ON THE SALE OR EXCHANGE OF FUND SHARES
Upon a sale or exchange of Fund shares, a shareholder will realize a
taxable gain or loss depending on his or her basis in the shares. A shareholder
must treat such gains or losses as a capital gain or loss if the shareholder
held the shares as capital assets. Capital gain on assets held for more than
eighteen months is generally subject to a maximum federal income tax rate of 20%
for an individual. The maximum capital gains tax rate for capital assets held by
an individual for more than twelve months but not more than eighteen months is
generally 28%. Generally, the Code will not allow a shareholder to realize a
loss on shares he or she has sold or exchanged and replaced within a
sixty-one-day period beginning thirty days before and ending thirty days after
he or she sold or exchanged the shares. The Code will treat a shareholder's loss
on shares held for six months or less as a long-term capital loss to the extent
the shareholder received capital gain dividends on such shares.
Shareholders who fail to furnish their taxpayer identification numbers
to a Fund and to certify as to its
32
<PAGE>
correctness and certain other shareholders may be subject to a 31% federal
income tax backup withholding requirement on dividends, distributions of capital
gains and redemption proceeds paid to them by the Fund. If the withholding
provisions are applicable, any such dividends or capital gain distributions to
these shareholders, whether taken in cash or reinvested in additional shares,
and any redemption proceeds will be reduced by the amounts required to be
withheld. Investors may wish to consult their own tax advisers about the
applicability of the backup withholding provisions.
OTHER TAX CONSIDERATIONS
The foregoing discussion relates solely to U.S. federal income tax law
as applicable to U.S. persons (i.e., U.S. citizens and residents and U.S.
domestic corporations, partnerships, trusts and estates). It does not reflect
the special tax consequences to certain taxpayers (e.g., banks, insurance
companies, tax exempt organizations and foreign persons). Shareholders are
encouraged to consult their own tax advisers regarding specific questions
relating to federal, state and local tax consequences of investing in shares of
a Fund. Each shareholder who is not a U.S. person should consult his or her tax
adviser regarding the U.S. and foreign tax consequences of ownership of shares
of a Fund, including the possibility that such a shareholder may be subject to a
U.S. withholding tax at a rate of 30% (or at a lower rate under a tax treaty) on
amounts treated as income from U.S. sources under the Code.
FINANCIAL INFORMATION
EXPENSES
The table below shows the total dollar amounts paid by each Fund for
services rendered during the fiscal periods specified. For more information on
specific expenses, see "Investment Advisory and Other Services," "Distribution
Plans and Agreements," "Principal Underwriter" and "Purchase, Redemption and
Pricing of Shares."
1997 FUND EXPENSES
<TABLE>
<CAPTION>
Total Underwriting
Class A Class B Class C Underwriting Commissions
FUND Advisory Fees 12b-1 Fees 12b-1 Fees 12b-1 Fees Commissions Retained
========================= ================= =============== =================== ================ ================== =============
<S> <C> <C> <C> <C> <C> <C>
Emerging Markets (1) $703,822(a) $5,656 $36,635 $7,616 $72,733 $16,463
Global Leaders (1) $1,398,605 $67,888 $897,836 $16,245 $3,877,434 $188,288
Global Opportunities (2A) $325,228 $23,188 $199,880 $40,961 $206,755 $17,298
Global Opportunities (2B) $5,048,808 $371,892 $2,946,506 $814,386 $774,233 $23,841
International Equity (1) $1,543,621(b) $21,095 $191,870 $2,983 $298,649 $8,273
Latin America (1) $869,691 $33,104 $899,853 $116,589 $324,470 $29,070
Natural Resources (3A) $157,633 $5,959 $102,986 $28,486 $28,662 $2,778
</TABLE>
33
<PAGE>
<TABLE>
<CAPTION>
1997 FUND EXPENSES
Total Underwriting
Class A Class B Class C Underwriting Commissions
FUND Advisory Fees 12b-1 Fees 12b-1 Fees 12b-1 Fees Commissions Retained
========================= ================ =============== =================== ================ ================== ===============
<S> <C> <C> <C> <C> <C> <C> <C>
Emerging Markets (1) $703,822(a) $5,656 $36,635 $7,616 $72,733 $16,463
Global Leaders (1) $1,398,605 $67,888 $897,836 $16,245 $3,877,434 $188,288
Global Opportunities (2A) $325,228 $23,188 $199,880 $40,961 $206,755 $17,298
Global Opportunities (2B) $5,048,808 $371,892 $2,946,506 $814,386 $774,233 $23,841
International Equity (1) $1,543,621(b) $21,095 $191,870 $2,983 $298,649 $8,273
Latin America (1) $869,691 $33,104 $899,853 $116,589 $324,470 $29,070
Natural Resources (3A) $157,633 $5,959 $102,986 $28,486 $28,662 $2,778
Natural Resources (3B) $243, 022 $11,027 $162,397 $32,622 $236,487 $124,799
Precious Metals (4A) $678,437 N/A $950,284* N/A $666,842 -0-
Precious Metals (4B) $1,322,411 N/A $1,923,248* N/A $2,088,781 $1,058,137
International Growth (1) $1,194,384 N/A $1,597,729* N/A $645,122 -0-
========================= ================ =============== =================== ================ ================== ===============
</TABLE>
(1) Year ended 10/31/97
(2A) One month ended 10/31/97
(2B) Year ended 9/30/97
(3A) Seven months ended 10/31/97
(3B) Year ended 3/31/97
(4A) Eight months ended 10/31/97
(4B) Year ended 2/28/97
(a) Of that amount, $240,240 waived by Adviser.
(b) Of that amount, $232,680 waived by Adviser.
* Not multiple class during this period; amount reflects all 12b-1 fees.
<TABLE>
<CAPTION>
1996 FUND EXPENSES
Total Underwriting
Class A Class B Class C Underwriting Commissions
FUND Advisory Fees 12b-1 Fees 12b-1 Fees 12b-1 Fees Commissions Retained
=============================== ================ =============== ============= ============== ================== ===============
<S> <C> <C> <C> <C> <C> <C>
Emerging Markets (1) $342,379 (a) $3,883 $19,319 $493 $12,924 $1,307
Global Leaders (2) $199,941 (b) $7,416 $64,024 $837 $221,285 $23,449
Global Opportunities (3) $5,668,408 $454,608 $3,210,981 $1,087,829 $6,424,039 -0-
International Equity (1) $891,137 (c) $14,674 $86,432 $1,589 $40,927 $6,190
Latin America (1) $831,618 $29,525 $886,788 $94,357 $1,172,200 $1,020,432
Natural Resources (4) $217,332 $11,886 $152,380 $17,285 $246,847 $93,134
Precious Metals (5) $1,354,605 N/A $1,979,775* N/A $1,979,775 $755,218
International Growth (1) $1,076,770 N/A $1,442,473* N/A $1,382,238 $442,507
=============================== ================ =============== ============= ============== ================== ==============
</TABLE>
(1) Year end 10/31/96
(2) Four months ended 10/31/96
(3) Year ended 9/30/96
(4) Year ended 3/31/96
34
<PAGE>
(5) Year ended 2/29/96
(a) Of that amount, $326,122 waived by Adviser.
(b) Of that amount, $138,323 waived by Adviser.
(c) Of that amount, $479,316 waived by Adviser.
* Not multiple class during this period; amount reflects all 12 b-1 fees.
1995 FUND EXPENSES
Total Underwriting
Underwriting Commissions
FUND Advisory Fees Commissions Retained
========================== ================== ================== ==============
Emerging Markets (1) $130,542 (a) $8,029 $949
Global Leaders N/A N/A N/A
Global Opportunities (2) $3,009,974 $3,227,507 -0-
International Equity (1) $299,412 (b) $36,393 $4,428
Latin America (1) $1,099,920 $1,719,539 $1,451,551
Natural Resources (3) $217,332 $353,409 $612,702
Precious Metals (4) $1,396,523 $2,179,660 $255,046
International Growth (5) $985,652 $1,486,838 $807,110
========================== ================== ================== ==============
(1) Ten months ended 10/31/95
(2) Year ended 9/30/95
(3) Year ended 3/31/95
(4) Year ended 2/28/95
(5) Year ended 10/31/95
(a) Entire amount waived by Adviser.
(b) Of that amount, $212,295 waived by Adviser.
BROKERAGE COMMISSIONS PAID
The table below shows (1) total amounts paid by each Fund in brokerage
commissions and (2) brokerage commissions paid by each Fund to Lieber & Company,
an affiliate of FUNB, during each of the fiscal periods specified.
<TABLE>
<CAPTION>
1997 1996 1995
Fund
================ --------------------------------- ----------------------------------------- --------------------------------------
Total Paid to Lieber Total Paid to Lieber Total Paid to Lieber
============== ================= ==================== =================== ==================== =================
<S> <C> <C> <C> <C> <C> <C>
Emerging (a) -0- (a) $242,847 (a) -0- (a) $60,543 (a) -0- (a)
Markets
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<PAGE>
Global (a) $119,963(a) $203,040 (e) $54,074 (e) N/A N/A
Leaders
Global (b) (b) -0- (b) $454,203 (b)
Opportunities (c) (c) $1,809,181 (b) -0- (b)
International (a) -0- (a) $560,019 (a) -0- (a) $71,508 (a) -0- (a)
Equity
Latin (a) -0- (a) (a) (a) (a) (a)
America
Natural (d) (d)
Resources $62,307(e) (e) $52,549 (c) -0- (c) $300,142 (c) -0- (c)
Precious (f) (f) $438,893 (d) -0- (d) $523,800 (d)
Metals $477,545(g) (g) -0- (d)
International (a) (a) $749,530 (a) -0- (a) $707,000 (e) -0- (e)
Growth
================ ============== ================= ==================== =================== ==================== =================
</TABLE>
1997 FOOTNOTES:
(a) Year ended 10/31/97
(b) One month ended 10/31/97
(c) Year ended 9/30/97
(d) Seven months ended 10/31/97
(e) Year ended 3/31/97
(f) Eight months ended 10/31/97
(g) Year ended 2/28/97
1996 FOOTNOTES:
(a) Year ended 10/31/96
(b) One month ended 9/30/96
(c) Year ended 3/31/96
(d) Year ended 2/29/96
(e) Four months ended 10/31/96
1995 FOOTNOTES:
(a) Ten months ended 10/31/95
(b) Year ended 9/30/95
(c) Year ended 3/31/95
(d) Year ended 2/28/95
(e) Year ended 10/31/95
COMPUTATION OF CLASS A OFFERING PRICE
Class A shares are sold at the NAV plus a sales charge. Below is an
example of the method of computing the offering price of Class A shares of each
Fund. The example assumes a purchase aggregating less than $50,000 subject to
the schedule of sales charges set forth in the prospectus at a price based upon
the NAV of each Fund's Class A shares as of October 31, 1997.
36
<PAGE>
FUND* NET ASSET VALUE PER SHARE OFFERING PRICE
SALES CHARGE PER SHARE
======================
Emerging Markets $9.99 $0.50 $10.49
Global Leaders $13.67 $0.68 $14.35
Global Opportunities $23.53 $1.17 $24.70
International Equity $11.07 $0.55 $11.62
Latin America $13.15 $0.66 $13.81
Natural Resources $12.58 $0.63 $13.21
*Excludes Precious Metals and International Growth, which had not yet offered
Class A shares.
PERFORMANCE
Total Return
Total return quotations for a class of shares of a Fund as they may
appear from time to time in advertisements are calculated by finding the average
annual compounded rates of return over one, five and ten year periods, or the
time periods for which such class of shares has been effective, whichever is
relevant, on a hypothetical $1,000 investment that would equate the initial
amount invested in the class to the ending redeemable value. To the initial
investment all dividends and distributions are added, and all recurring fees
charged to all shareholder accounts are deducted. The ending redeemable value
assumes a complete redemption at the end of each period.
The average annual total returns for each class of shares of the Funds
(including applicable sales charges) as of October 31, 1997 are as follows:
<TABLE>
<CAPTION>
TEN YEARS OR
SINCE INCEPTION
FUND/CLASS ONE YEAR FIVE YEARS INCEPTION DATE
EMERGING MARKETS
<S> <C> <C> <C> <C>
Class A 12.48% - -1.38% 9/6/94
Class B 12.40% - -1.43% 9/6/94
Class C 16.54% - -0.48% 9/6/94
Class Y 18.40% - 0.38% 9/6/94
GLOBAL LEADERS
Class A 9.43% - 10.69% 6/3/96
Class B 9.01% - 10.98% 6/3/96
Class C 13.02% - 13.62% 6/3/96
Class Y 15.22% - 17.35% 11/1/95
23569
37
<PAGE>
TEN YEARS OR
SINCE INCEPTION
FUND/CLASS ONE YEAR FIVE YEARS INCEPTION DATE
GLOBAL OPPORTUNITIES
Class A -0.70% 14.83% 11.60% 3/16/88
Class B -1.47% - 11.86% 2/1/93
Class C 2.44% - 12.17% 2/1/93
Class Y - - 3.69%** 1/13/97
INTERNATIONAL EQUITY
Class A 2.51% - 2.48% 9/2/94
Class B 1.79% - 2.49% 9/2/94
Class C 5.76% - 3.40% 9/2/94
Class Y 7.92% - 4.33% 9/2/94
LATIN AMERICA
Class A 13.52% - 8.25% 11/1/93
Class B 13.40% - 8.41% 11/1/93
Class C 17.38% - 8.82% 11/1/93
NATURAL RESOURCES
Class A 4.10% - 6.12% 10/7/94
Class B 3.55% - 6.20% 10/7/94
Class C 7.55% - 7.07% 10/7/94
PRECIOUS METALS* -33.51% 3.76% 0.22% over ten years ago
INTERNATIONAL GROWTH* 12.69% 11.58% 6.48% over ten years ago
</TABLE>
* Not multiple class during this period.
** Cumulative since inception.
NON-STANDARDIZED PERFORMANCE
In addition to the performance information described above, a Fund may
provide total return information for designated periods, such as for the most
recent six months or most recent twelve months. This total return information is
computed as described under "Total Return" above except that no annualization is
made.
GENERAL
From time to time, a Fund may quote its performance in advertising and
other types of literature as compared to the performance of the Standard &
Poor's 500 Composite Stock Price Index, the Dow Jones
23569
38
<PAGE>
Industrial Average, Russell 2000 Index, or any other commonly quoted index of
common stock prices. The Standard & Poor's 500 Composite Stock Price Index, the
Dow Jones Industrial Average and the Russell 2000 Index are unmanaged indices of
selected common stock prices. A Fund's performance may also be compared to those
of other mutual funds having similar objectives. This comparative performance
would be expressed as a ranking prepared by Lipper Analytical Services, Inc. or
similar independent services monitoring mutual fund performance. A Fund's
performance will be calculated by assuming, to the extent applicable,
reinvestment of all capital gains distributions and income dividends paid. Any
such comparisons may be useful to investors who wish to compare a Fund's past
performance with that of its competitors. Of course, past performance cannot be
a guarantee of future results.
Financial Statements
The audited financial statements and the reports thereon are hereby
incorporated by reference to each Fund's Annual Report, a copy of which may be
obtained without charge from ESC, P.O. Box 2121, Boston, Massachusetts
02106-2121.
ADDITIONAL INFORMATION
Except as otherwise stated in its prospectus or required by law, each
Fund reserves the right to change the terms of the offer stated in its
prospectus without shareholder approval, including the right to impose or change
fees for services provided.
No dealer, salesman or other person is authorized to give any
information or to make any representation not contained in a Fund's prospectus,
SAI or in supplemental sales literature issued by such Fund or the Distributor,
and no person is entitled to rely on any information or representation not
contained therein.
Each Fund's prospectus and SAI omit certain information contained in
the Trust's registration statement, which you may obtain for a fee from the SEC
in Washington, D.C.
23569
39
<PAGE>
APPENDIX A
S&P AND MOODY'S BOND RATINGS
S&P BOND RATINGS
An S&P bond rating is a current assessment of the creditworthiness of
an obligor, including obligors outside the U.S., with respect to a specific
obligation. This assessment may take into consideration obligors such as
guarantors, insurers or lessees. Ratings of foreign obligors do not take into
account currency exchange and related uncertainties. The ratings are based on
current information furnished by the issuer or obtained by S&P from other
sources it considers reliable.
The ratings are based, in varying degrees, on the following
considerations:
a. Likelihood of default and capacity and willingness of the obligor as
to the timely payment of interest and repayment of principal in accordance with
the terms of the obligation;
b. Nature of and provisions of the obligation; and
c. Protection afforded by and relative position of the obligation in
the event of bankruptcy reorganization or other arrangement under the laws of
bankruptcy and other laws affecting creditors' rights.
PLUS (+) OR MINUS (-): To provide more detailed indications of credit
quality, ratings from "AA" to "BBB" may be modified by the addition of a plus or
minus sign to show relative standing within the major rating categories.
A provisional rating is sometimes used by S&P. It assumes the
successful completion of the project being financed by the debt being rated and
indicates that payment of debt service requirements is largely or entirely
dependent upon the successful and timely completion of the project. This rating,
however, while addressing credit quality subsequent to completion of the
project, makes no comment on the likelihood of, or the risk of default upon
failure of, such completion.
S&P bond ratings are as follows:
a. AAA - Debt rated AAA has the highest rating assigned by S&P.
Capacity to pay interest and repay principal is extremely strong.
b. AA - Debt rated AA has a very strong capacity to pay interest and
repay principal and differs from the higher rated issues only in small degree.
3. A - Debt rated A has a strong capacity to pay interest and repay
principal although it is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than debt in higher rated
categories.
4. BBB - Debt rated BBB is regarded as having an adequate capacity to
pay interest and repay principal. Whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing circumstances are
more likely to lead to a weakened capacity to pay interest and repay principal
22987
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<PAGE>
for debt in this category than in higher rated categories.
5. BB, B, CCC, CC and C - Debt rated BB, B, CCC, CC and C is regarded,
on balance, as predominantly speculative with respect to capacity to pay
interest and repay principal in accordance with the terms of the obligation. BB
indicates the lowest degree of speculation and C the highest degree of
speculation. While such debt will likely have some quality and protective
characteristics, these are outweighed by large uncertainties or major risk
exposures to adverse conditions.
Moody's Bond Ratings
Moody's ratings are as follows:
1. Aaa - Bonds which are rated Aaa are judged to be of the best
quality. They carry the smallest degree of investment risk and are generally
referred to as "gilt-edge." Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be visualized are
most unlikely to impair the fundamentally strong position of such issues.
2. Aa - Bonds which are rated Aa are judged to be of high quality by
all standards. Together with the Aaa group they comprise what are generally
known as high grade bonds. They are rated lower than the best bonds because
margins of protection may not be as large as in Aaa securities or fluctuation of
protective elements may be of greater amplitude or there may be other elements
present which make the long term risks appear somewhat larger than in Aaa
securities.
3. A - Bonds which are rated A possess many favorable investment
attributes and are to be considered as upper medium grade obligations. Factors
giving security to principal and interest are considered adequate but elements
may be present which suggest a susceptibility to impairment sometime in the
future.
4. Baa - Bonds which are rated Baa are considered as medium grade
obligations, i.e., they are neither highly protected nor poorly secured.
Interest payments and principal security appear adequate for the present but
certain protective elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack outstanding investment
characteristics and in fact have speculative characteristics as well.
5. Ba - Bonds which are rated Ba are judged to have speculative
elements. Their future cannot be considered as well assured. Often the
protection of interest and principal payments may be very moderate and thereby
not well safeguarded during both good and bad times over the future. Uncertainty
of position characterizes bonds in this class.
6. B - Bonds which are rated B generally lack characteristics of the
desirable investment. Assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of time may be
small.
7. Caa - Bonds which are rated Caa are of poor standing. Such issues
may be in default or there may be present elements of danger with respect to
principal or interest.
8. Ca - Bonds which are rated Ca represent obligations which are
speculative in a high degree. Such issues are often in defauolt or have other
market shortcomings.
9. C - Bonds which are rated as C are the lowest rated class of bonds
and issues so rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing.
22987
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<PAGE>
Moody's applies numerical modifiers, 1, 2 and 3 in each generic rating
classification from Aa through Baa in its corporate bond rating system. The
modifier 1 indicates that the security ranks in the higher end of its generic
rating category; the modifier 2 indicates a mid-range ranking; and the modifier
3 indicates that the issue ranks in the lower end of its generic rating
category.
MONEY MARKET INSTRUMENTS
Money market securities are instruments with remaining maturities of
one year or less such as bank certificates of deposit, bankers' acceptances,
commercial paper (including variable rate master demand notes), and obligations
issued or guaranteed by the U.S. government, its agencies or instrumentalities,
some of which may be subject to repurchase agreements.
Commercial Paper
Commercial paper will consist of issues rated at the time of purchase
A-1, by S&P, or Prime-1 by Moody's or F-1 by Fitch Investor Services, L.P.; or,
if not rated, will be issued by companies which have an outstanding debt issue
rated at the time of purchase Aaa, Aa or A by Moody's, or AAA, AA or A by S&P or
Fitch, or will be determined by a Fund's investment adviser to be of comparable
quality.
A. S&P Ratings
An S&P commercial paper rating is a current assessment of the
likelihood of timely payment of debt having an original maturity of no more than
365 days. Ratings are graded into four categories, ranging from "A" for the
highest quality obligations to "D" for the lowest. The top category is as
follows:
1. A: Issues assigned this highest rating are regarded as having the
greatest capacity for timely payment. Issues in this category are delineated
with the numbers 1, 2 and 3 to indicate the relative degree of safety.
2. A-1: This designation indicates that the degree of safety regarding
timely payment is either overwhelming or very strong. Those issues determined to
possess overwhelming safety characteristics are denoted with a plus (+) sign
designation.
B. Moody's Ratings
The term "commercial paper" as used by Moody's means promissory
obligations not having an original maturity in excess of nine months. Moody's
commercial paper ratings are opinions of the ability of issuers to repay
punctually promissory obligations not having an original maturity in excess of
nine months. Moody's employs the following designation, judged to be investment
grade, to indicate the relative repayment capacity of rated issuers.
1. The rating Prime-1 is the highest commercial paper rating assigned
by Moody's. Issuers rated Prime-1 (or related supporting institutions) are
deemed to have a superior capacity for repayment of short term promissory
obligations. Repayment capacity of Prime-1 issuers is normally evidenced by the
following characteristics:
1) leading market positions in well-established industries;
2) high rates of return on funds employed;
3) conservative capitalization structures with moderate reliance
on debt and ample asset protection;
4) broad margins in earnings coverage of fixed financial charges
and high internal cash generation; and
22987
A-3
<PAGE>
5) well established access to a range of financial markets and
assured sources of alternate liquidity.
In assigning ratings to issuers whose commercial paper obligations are
supported by the credit of another entity or entities, Moody's evaluates the
financial strength of the affiliated corporations, commercial banks, insurance
companies, foreign governments or other entities, but only as one factor in the
total rating assessment.
C. Fitch Ratings
Fitch's short-term ratings apply to debt obligations that are payable
on demand or have original maturities of generally up to three years, including
commercial paper, certificates of deposit, medium-term notes, and municipal and
investment notes.
The short-term rating places greater emphasis than a long-term rating
on the existence of liquidity necessary to meet the issuer's obligations in a
timely manner.
F-1+: Exceptionally Strong Credit Quality. Issues assigned this rating
are regarded as having the strongest degree of assurance for timely payment.
F-1: Very Strong Credit Quality. Issues assigned this rating reflect an
assurance of timely payment only slightly less in degree than issues rated
"F-1+."
F-2: Good Credit Quality. Issues assigned this rating have a
satisfactory degree of assurance for timely payment, but the margin of safety is
not as great as for issues assigned "F-1+" and "F-1" ratings.
F-3: Fair Credit Quality. Issues assigned this rating have
characteristics suggesting that the degree of assurance for timely payment is
adequate; however, near-term adverse changes could cause these securities to be
rated below investment grade.
F-5: Weak Credit Quality. Issues assigned this rating have
characteristics suggesting a minimal degree of assurance for timely payment and
are vulnerable to near-term adverse changes in financial and economic
conditions.
D: Default. Issues assigned this rating are in actual or imminent
payment default.
LOC: The symbol LOC indicates that the rating is based on a letter of
credit issued by a commercial bank.
22987
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<PAGE>
EVERGREEN INTERNATIONAL TRUST
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits
Item 24(a). Financial Statements
The financial statements listed below are included in Part A of this
Amendment to the Registration Statement:
EVERGREEN EMERGING MARKETS GROWTH FUND
Class A Financial Highlights For each of the years in the
three-year period ended
October 31, 1997; for the
ten-month period ended
October 31, 1995; and for the
period from September 6, 1994
(Commencement of Operations)
to December 31, 1994
Class B Financial Highlights For each of the years in the
three-year period ended
October 31, 1997; for the
ten-month period ended
October 31, 1995; and for the
period from September 6, 1994
(Commencement of Operations)
to December 31, 1994
Class C Financial Highlights For each of the years in the
three-year period ended
October 31, 1997; for the
ten-month period ended
October 31, 1995; and for the
period from September 6, 1994
(Commencement of Operations)
to December 31, 1994
Class Y Financial Highlights For each of the years in the
three-year period ended
October 31, 1997; for the
ten-month period ended
October 31, 1995; and for the
period from September 6, 1994
(Commencement of Operations)
to December 31, 1994
EVERGREEN INTERNATIONAL EQUITY FUND
Class A Financial Highlights For each of the years in the
three-year period ended
October 31, 1997; for the
ten-month period ended
October 31, 1995; and for the
period from September 2, 1994
(Commencement of Operations)
to December 31, 1994
Class B Financial Highlights For each of the years in the
three-year period ended
October 31, 1997; for the
ten-month period ended
October 31, 1995; and for the
period from September 2, 1994
(Commencement of Operations)
to December 31, 1994
Class C Financial Highlights For each of the years in the
three-year period ended
October 31, 1997; for the
ten-month period ended
October 31, 1995; and for the
period from September 2, 1994
(Commencement of Operations)
to December 31, 1994
Class Y Financial Highlights For each of the years in the
three-year period ended
October 31, 1997; for the
ten-month period ended
October 31, 1995; and for the
period from September 2, 1994
(Commencement of Operations)
to December 31, 1994
EVERGREEN GLOBAL LEADERS FUND
Class A Financial Highlights For each of the years in the
two-year period ended
October 31, 1997; and for the
period from June 3, 1996
(Commencement of Operations)
to October 31, 1996
Class B Financial Highlights For each of the years in the
two-year period ended
October 31, 1997; and for the
period from June 3, 1996
(Commencement of Operations)
to October 31, 1996
Class C Financial Highlights For each of the years in the
two-year period ended
October 31, 1997; and for the
period from June 3, 1996
(Commencement of Operations)
to October 31, 1996
Class Y Financial Highlights For each of the years in the
two-year period ended
October 31, 1997; and for the
period from June 3, 1996
(Commencement of Operations)
to October 31, 1996
EVERGREEN GLOBAL OPPORTUNITIES FUND
Class A Financial Highlights For the one-month period ended
October 31, 1997; for each of
the years in the nine-year
period ended September 30,
1997; and for the period from
March 16, 1988 (Commencement
of Operations) to September
30, 1988
Class B Financial Highlights For the one-month period ended
October 31, 1997; for each of
the years in the four-year
period ended September 30,
1997; and for the period from
February 1, 1993 (Commencement
of Operations) to September
30, 1993
Class C Financial Highlights For the one-month period ended
October 31, 1997; for each of
the years in the four-year
period ended September 30,
1997; and for the period from
February 1, 1993 (Commencement
of Operations) to September
30, 1993
Class Y Financial Highlights For the one-month period ended
October 31, 1997; and for the
period from January 13, 1997
(Commencement of Operations)
to September 30, 1997
EVERGREEN INTERNATIONAL GROWTH FUND
Class A Financial Highlights For each of the years in the
three-year period ended
October 31, 1997; for the
one-month period ended
October 31, 1994; and for each
of the years in the seven-year
period ended September 30,
1994
Class B Financial Highlights For each of the years in the
three-year period ended
October 31, 1997; for the
one-month period ended
October 31, 1994; and for each
of the years in the seven-year
period ended September 30,
1994
Class C Financial Highlights For each of the years in the
three-year period ended
October 31, 1997; for the
one-month period ended
October 31, 1994; and for each
of the years in the seven-year
period ended September 30,
1994
Class Y Financial Highlights For each of the years in the
three-year period ended
October 31, 1997; for the
one-month period ended
October 31, 1994; and for each
of the years in the seven-year
period ended September 30,
1994
EVERGREEN PRECIOUS METALS FUND
Class A Financial Highlights For the eight-month period
ended October 31, 1997; and
for each of the years in the
ten-year period ended
February 28, 1997
Class B Financial Highlights For the eight-month period
ended October 31, 1997; and
for each of the years in the
ten-year period ended
February 28, 1997
Class C Financial Highlights For the eight-month period
ended October 31, 1997; and
for each of the years in the
ten-year period ended
February 28, 1997
Class Y Financial Highlights For the eight-month period
ended October 31, 1997; and
for each of the years in the
ten-year period ended
February 28, 1997
EVERGREEN LATIN AMERICA FUND
Class A Financial Highlights For each of the years in the
four-year period ended
October 31, 1997
Class B Financial Highlights For each of the years in the
four-year period ended
October 31, 1997
Class C Financial Highlights For each of the years in the
four-year period ended
October 31, 1997
EVERGREEN NATURAL RESOURCES FUND
Class A Financial Highlights For the seven-month period
ended October 31, 1997; for
each of the years in the
two-year period ended
March 31, 1997; and for the
period from October 7, 1994
(Commencement of Operations)
to March 31, 1995
Class B Financial Highlights For the seven-month period
ended October 31, 1997; for
each of the years in the
two-year period ended
March 31, 1997; and for the
period from October 7, 1994
(Commencement of Operations)
to March 31, 1995
Class C Financial Highlights For the seven-month period
ended October 31, 1997; for
each of the years in the
two-year period ended
March 31, 1997; and for the
period from October 7, 1994
(Commencement of Operations)
to March 31, 1995
The financial statements listed below are included in Part B of this
Amendment to the Registration Statement:
Schedule of Investments October 31, 1997
Statement of Assets and Liabilities October 31, 1997
Statement of Operations Year ended October 31, 1997
For Evergreen Global Opportunities Fund For the one-month period
ended October 31, 1997 and
the year ended September 30,
1997
For Evergreen Precious Metals Fund For the eight-month period
ended October 31, 1997 and
the year ended February 28,
1997
For Evergreen Natural Resources Fund For the seven-month period
ended October 31, 1997 and
the year ended March 31, 1997
Statements of Changes in Net Assets For each of the years in the
two-year period ended October
31, 1997
For Evergreen Global Opportunities Fund For the one-month period
ended October 31, 1997 and
the two years ended September
30, 1997
For Evergreen Precious Metals Fund For the eight-month period
ended October 31, 1997 and
the two years ended February
28, 1997
For Evergreen Natural Resources Fund For the seven-month period
ended October 31, 1997 and
the two years ended March 31,
1997
Notes to Financial Statements October 31, 1997
Independent Auditors' Report November 26, 1997
(for Evergreen Global Opportunities
Fund, Evergreen International Growth
Fund, Evergreen Latin America Fund,
Evergreen Natural Resources Fund and
Evergreen Precious Metals Fund)
Report of Independent Accountants December 15, 1997
(for Evergreen Emerging Markets
Growth Fund, Evergreen Global Leaders
Fund and Evergreen International
Equity Fund)
Item 24(b). Exhibits
Unless otherwise indicated, each of the Exhibits listed below is filed
herewith.
<TABLE>
<CAPTION>
Exhibit
Number Description Location
- ------- ----------- -----------
<S> <C> <C>
1 Declaration of Trust Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
2 By-laws Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
3 Not applicable
4 Provisions of instruments defining the rights
of holders of the securities being registered
are contained in the Declaration of Trust
Articles II, III.(6)(c), VI.(3), IV.(8), V, VI,
VII, VIII and By-laws Articles II, III and VIII
included as part of Exhibits 1 and 2 of this
Registration Statement
5(a) Form of Investment Advisory and Management Incorporated by reference to
Agreement between the Registrant and First Registrant's Registration Statement
Union National Bank Filed on December 12, 1997
5(b) Form of Investment Advisory and Management Incorporated by reference to
Agreement between the Registrant and Evergreen Registrant's Registration Statement
Asset Management Corp. Filed on December 12, 1997
5(c) Form of Investment Advisory and Management Incorporated by reference to
Agreement between the Registrant and Keystone Registrant's Registration Statement
Investment Management Company Filed on December 12, 1997
6(a) Form of Class A and Class C Principal Underwriting Incorporated by reference to
Agreement between the Registrant and Evergreen Registrant's Registration Statement
Distributor, Inc. Filed on December 12, 1997
6(b) Form of Class B Principal Underwriting Agreement Incorporated by reference to
between the Registrant and Evergreen Investment Registrant's Registration Statement
Services, Inc. (B-1) Filed on December 12, 1997
6(c) Form of Class B Principal Underwriting Agreement Incorporated by reference to
between the Registrant and Evergreen Distributor, Registrant's Registration Statement
Inc. (B-2) Filed on December 12, 1997
6(d) Form of Class B Principal Underwriting Agreement Incorporated by reference to
between the Registrant and Evergreen Distributor, Registrant's Registration Statement
Inc. (Evergreen/KCF) Filed on December 12, 1997
6(e) Form of Class Y Principal Underwriting Agreement Incorporated by reference to
between the Registrant and Evergreen Distributor, Registrant's Registration Statement
Inc. Filed on December 12, 1997
6(f) Form of Dealer Agreement used by Evergreen Incorporated by reference to
Distributor, Inc. Registrant's Registration Statement
Filed on December 12, 1997
7 Form of Deferred Compensation Plan Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
8 Form of Custodian Agreement between the Registrant Incorporated by reference to
and State Street Bank and Trust Company Registrant's Registration Statement
Filed on December 12, 1997
9(a) Form of Administration Agreement between Evergreen Incorporated by reference to
Investment Services, Inc. and the Registrant Registrant's Registration Statement
Filed on December 12, 1997
9(b) Form of Transfer Agent Agreement between the Incorporated by reference to
Registrant and Evergreen Service Company Registrant's Registration Statement
Filed on December 12, 1997
10 Opinion and Consent of Sullivan & Worcester LLP Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
11(a) Consent of Price Waterhouse LLP
11(b) Consent of KPMG Peat Marwick LLP
12 Not applicable
13 Not applicable
15(a) Form of 12b-1 Distribution Plan for Class A Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
15(b) Form of 12b-1 Distribution Plan for Class B Incorporated by reference to
(KAF B-1) Registrant's Registration Statement
Filed on December 12, 1997
15(c) Form of 12b-1 Distribution Plan for Class B Incorporated by reference to
(KAF B-2) Registrant's Registration Statement
Filed on December 12, 1997
15(d) Form of 12b-1 Distribution Plan for Class B Incorporated by reference to
(KCF/Evergreen) Registrant's Registration Statement
Filed on December 12, 1997
15(d) Form of 12b-1 Distribution Plan for Class C Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
16 Performance Calculations
17 Financial Data Schedules
18 Multiple Class Plan Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
19 Powers of Attorney Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
</TABLE>
Item 25. Persons Controlled by or Under Common Control with Registrant.
None
Item 26. Number of Holders of Securities (as of January 30, 1998)
Evergreen Emerging Markets Growth Fund
Class A 494
Class B 612
Class C 107
Class Y 90
Evergreen Global Leaders Fund
Class A 7,304
Class B 22,312
Class C 265
Class Y 371
Evergreen Global Opportunities Fund
Class A 5,164
Class B 15,774
Class C 2,461
Class Y 3
Evergreen International Equity Fund
Class A 1,876
Class B 3,621
Class C 60
Class Y 87
Evergreen Latin America Fund
Class A 1,267
Class B 4,574
Class C 546
Evergreen Natural Resources Fund
Class A 263
Class B 778
Class C 180
Evergreen Precious Metals Fund
Class A 12,311
Class B 3,862
Class C 0
Evergreen International Growth Fund
Class A 10,572
Class B 3,808
Class C --
Class Y --
Item 27. Indemnification.
Provisions for the indemnification of the Registrant's Trustees and
officers are contained the Registrant's Declaration of Trust a copy of which is
currently on file.
Provisions for the indemnification of the Registrant's Investment Advisor
are contained in their respective Investment Advisory and Management Agreements.
Provisions for the indemnification of Evergreen Distributor, Inc., the
Registrant's principal underwriter, are contained in each Principal Underwriting
Agreement between Evergreen Distributor, Inc. and the Registrant.
Item 28. Business or Other Connections of Investment Adviser.
The Directors and principal executive officers of First Union National Bank
are:
Edward E. Crutchfield, Jr. Chairman and Chief Executive Officer,
First Union Corporation; Chief Executive
Officer and Chairman, First Union National
Bank
John R. Georgius President, First Union Corporation; Vice
Chairman and President, First Union National
Bank
Marion A. Cowell, Jr. Executive Vice President, Secretary &
General Counsel, First Union Corporation;
Secretary and Executive Vice President,
First Union National Bank
Robert T. Atwood Executive Vice President and Chief Financial
Officer, First Union Corporation; Chief
Financial Officer and Executive Vice
President
All of the above persons are located at the following address: First Union
National Bank, One First Union Center, Charlotte, NC 28288.
The information required by this item with respect to Evergreen Asset
Management Corp. is incorporated by reference to the Form ADV (File No.
801-46522) of Evergreen Asset Management Corp.
The information required by this item with respect to Keystone Investment
Management Company is incorporated by reference to the Form ADV (File No.
801-8327) of Keystone Investment Management Company.
Item 29. Principal Underwriters.
The Directors and principal executive officers of Evergreen Distributor,
Inc. are:
Lynn C. Mangum Director, Chairman and Chief Executive
Officer
Robert J. McMullan Director, Executive Vice President and
Treasurer
J. David Huber President
Kevin J. Dell Vice President, General Counsel and Secretary
All of the above persons are located at the following address: Evergreen
Distributor, Inc., 125 West 55th Street, New York, New York 10019.
Evergreen Distributor, Inc. acts as principal underwriter for each
registered investment company or series thereof that is a part of the Evergreen
Keystone "fund complex" as such term is defined in Item 22(a) of Schedule 14A
under the Securities Exchange Act of 1934.
Item 30. Location of Accounts and Records.
All accounts and records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and the Rules 31a-1 through 31a-3 promulgated
thereunder are maintained at one of the following locations:
Evergreen Investment Services, Inc., Evergreen Service Company and Keystone
Investment Management Company, all located at 200 Berkeley Street, Boston,
Massachusetts 02110
First Union National Bank, One First Union Center, 301 S. College Street,
Charlotte, North Carolina 28288
Evergreen Asset Management Corp., 2500 Westchester Avenue, Purchase,
New York 10577
Iron Mountain, 3431 Sharp Slot Road, Swansea, Massachusetts 02777
State Street Bank and Trust Company, 2 Heritage Drive, North Quincy,
Massachusetts 02171
Item 31. Management Services.
Not Applicable
Item 32. Undertakings.
The Registrant hereby undertakes to furnish each person to whom a
prospectus is delivered with a copy of the Registrant's latest annual
report to shareholders, upon request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940 the Registrant has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereto duly
authorized, in the City of Columbus, and State of Ohio, on the 27th day of
February, 1998.
EVERGREEN INTERNATIONAL TRUST
By: /s/ William J. Tomko
-----------------------------
Name: William J. Tomko
Title: President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities indicated on the 27h day of February 1998.
<TABLE>
<CAPTION>
<S> <C> <C>
/s/William J. Tomko /s/ Laurence B. Ashkin /s/ Charles A. Austin, III
- ------------------------- ----------------------------- --------------------------------
William J. Tomko Laurence B. Ashkin* Charles A. Austin III*
President amd Treasurer (Principal Trustee Trustee
Financial and Accounting Officer)
/s/ K. Dun Gifford /s/ James S. Howell /s/ William Walt Pettit
- ---------------------------- ---------------------------- --------------------------------
K. Dun Gifford* James S. Howell* William Walt Pettit*
Trustee Trustee Trustee
/s/Gerald M. McDonnell /s/ Thomas L. McVerry /s/ Michael S. Scofield
- ------------------------------- ----------------------------- --------------------------------
Gerald M. McDonell* Thomas L. McVerry* Michael S. Scofield*
Trustee Trustee Trustee
/s/ David M. Richardson /s/ Russell A. Salton, III MD
- ------------------------------ -------------------------------
David M. Richardson* Russell A. Salton, III MD*
Trustee Trustee
/s/ Richard J. Shima
- ------------------------------
Richard J. Shima*
Trustee
</TABLE>
*By: /s/ Dorothy E. Bourassa
- -------------------------------
Dorothy E. Bourassa
Attorney-in-Fact
*Dorothy E. Bourassa, by signing her name hereto, does hereby sign this
document on behalf of each of the above-named individuals pursuant to powers of
attorney duly executed by such persons.
<PAGE>
INDEX TO EXHIBITS
Exhibit Number Exhibit
- -------------- -------
11(a) Consent of Price Waterhouse LLP
11(b) Consent of KPMG Peat Marwick LLP
16 Performance Calculations
17 Financial Data Schedules
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectuses and
Statement of Additional Information constituting parts of this Post-Effective
Amendment No. 4 to the registration statement on Form N-1A of Evergreen
International Trust (the "Registration Statement") of our report dated December
15, 1997, relating to the financial statements and financial highlights
appearing in the October 31, 1997 Annual Report to Shareholders of Evergreen
Emerging Markets Growth Fund, Evergreen Global Leaders Fund and Evergreen
International Equity Fund, which is also incorporated by reference into the
Registration Statement. We also consent to the references to us under the
heading "Financial Highlights" in the Prospectuses and under the heading
"Independent Auditors" in the Statement of Additional Information.
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York
February 26, 1998
CONSENT OF INDEPENDENT AUDITORS
The Trustees and Shareholders
Evergreen International Trust
We consent to the use of our reports dated November 26, 1997 for Evergreen
Global Opportunities Fund, Evergreen International Growth Fund, Evergreen Latin
America Fund, Evergreen Natural Resources Fund and Evergreen Precious Metals
Fund incorporated by reference herein.
/s/ KPMG Peat Marwick LLP
KPMG Peat Marwick LLP
Boston, Massachusetts
February 27, 1998
INTERNATIONAL EQUITY CLASS A
<TABLE>
<CAPTION>
9-Aug-02
A NAV A A
TIME ACCOUNT A AVERAGE A/C VALUE A AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL W/LOAD CLASS ANNNUAL
<S> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,134.58 0.00% 952.5 -4.75% -4.75%
30-Sep-97 1 MO 1,255.52 -9.63% -9.63% 860.75 -13.93% -13.93%
31-Jul-97 QTR 1,307.79 -13.24% -13.24% 826.35 -17.37% -17.37%
31-Dec-97 YTD 1,076.65 5.38% 5.38% 1,003.76 0.38% 0.38%
31-Oct-96 1 1,054.27 7.62% 7.62% 1,025.06 2.51% 2.51%
31-Oct-94 3 1,000.00 13.46% 4.30% 1,080.69 8.07% 2.62%
31-Oct-92 5 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0
2-Sep-94 INCEPT. 1,000.00 13.46% 4.07% 1,080.69 8.07% 2.48%
INCEPTION FACTOR: 3.1671
</TABLE>
INTERNATIONAL EQUITY CLASS B
<TABLE>
<CAPTION>
$1,000
B B NAV LEVEL VALUE OF VALUE OF B
TIME ACCOUNT B AVERAGE LOAD CLASS B CLASS B INIB. AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,110.86 0.00% 50 1000 1000 0.00%
30-Sep-97 1 MO 1,231.14 -9.77% -9.77% 45.11 902.3 902.3 -14.28% -14.28%
31-Jul-97 QTR 1,283.70 -13.46% -13.46% 43.27 865.35 865.35 -17.79% -17.79%
31-Dec-97 YTD 1,052.09 5.59% 5.59% 50 1055.86 1128.34 0.59% 0.59%
31-Oct-96 1 1,040.24 6.79% 6.79% 50 1067.89 1059.79 1.79% 1.79%
31-Oct-94 3 1,000.00 11.09% 3.57% 30 1110.86 1099 8.09% 2.63%
31-Oct-92 5 0 0 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0 0 0
2-Sep-94 INCEPT. 1,000.00 11.09% 3.38% 30 1110.86 1099 8.09% 2.49%
INCEPTION FACTOR: 3.1671
</TABLE>
INTERNATIONAL EQUITY CLASS C
<TABLE>
<CAPTION>
$1,000
C C NAV LEVEL VALUE OF VALUE OF C
ACCOUNT C AVERAGE LOAD CLASS C CLASS C INIC. AVERAGE
YEARS VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,111.82 0.00% 10 1000 1000 0.00%
30-Sep-97 1 MO 1,232.56 -9.80% -9.80% 9.02 902.04 902.04 -10.70% -10.70%
31-Jul-97 QTR 1,283.87 -13.40% -13.40% 8.66 865.99 865.99 -14.27% -14.27%
31-Dec-97 YTD 1,054.34 5.45% 5.45% 10 1054.51 1126.4 4.45% 4.45%
31-Oct-96 1 1,041.46 6.76% 6.76% 10 1067.55 1061.48 5.76% 5.76%
31-Oct-94 3 1,000.00 11.18% 3.60% 0 1111.82 1105 11.18% 3.60%
31-Oct-92 5 0 0 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0 0 0
2-Sep-94 INCEPT. 1,000.00 11.18% 3.40% 0 1111.82 1105 11.18% 3.40%
INCEPTION FACTOR: 3.1671
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY CLASS Y
Y
TIME ACCOUNT Y AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL
<S> <C> <C> <C> <C>
31-Oct-97 BLANK 1,143.62 0.00%
30-Sep-97 1 MO 1,265.08 -9.60% -9.60%
31-Jul-97 QTR 1,316.55 -13.14% -13.14%
31-Dec-97 YTD 1,084.93 5.41% 5.41%
31-Oct-96 1 1,059.73 7.92% 7.92%
31-Oct-94 3 1,000.00 14.36% 4.57%
31-Oct-92 5 0 0 0
31-Oct-87 10 0 0 0
2-Sep-94 INCEPT. 1,000.00 14.36% 4.33%
INCEPTION FACTOR: 3.1671
</TABLE>
EMERGING CLASS A
<TABLE>
<CAPTION>
9-Aug-02
A NAV A A
TIME ACCOUNT A AVERAGE A/C VALUE A AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL W/LOAD CLASS ANNNUAL
<S> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1004.96 0.00% 952.50 -4.75% -4.75%
30-Sep-97 1 MO 1135.73 -11.51% -11.51% 842.82 -15.72% -15.72%
31-Jul-97 QTR 1186.03 -15.27% -15.27% 807.08 -19.29% -19.29%
31-Dec-97 YTD 1041.07 -3.47% -3.47% 919.46 -8.05% -8.05%
31-Oct-96 1 851.04 18.09% 18.09% 1124.76 12.48% 12.48%
31-Oct-94 3 949.00 5.90% 1.93% 1008.66 0.87% 0.29%
31-Oct-92 5 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0
6-Sep-94 INCEPT. 1000.00 0.50% 0.16% 957.22 -4.28% -1.38%
INCEPTION FACTOR: 3.1562
</TABLE>
EMERGING CLASS B
<TABLE>
<CAPTION>
1000
B B NAV LEVEL VALUE OF VALUE OF B
TIME ACCOUNT B AVERAGE LOAD CLASS B CLASS B INIB. AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 985 0.00% 50 1000 1000 0.00%
30-Sep-97 1 MO 1,116.00 -11.74% -11.74% 44.13082 882.62 882.62 -16.15% -16.15%
31-Jul-97 QTR 1,167.00 -15.60% -15.60% 42.20223 844.04 844.04 -19.82% -19.82%
31-Dec-97 YTD 1,019.91 -3.42% -3.42% 49.54728 965.77 990.95 -8.38% -8.38%
31-Oct-96 1 839 17.40% 17.40% 50 1174.02 1174.02 12.40% 12.40%
31-Oct-94 3 949 3.79% 1.25% 30 1037.93 1037.93 0.79% 0.26%
31-Oct-92 5 0 0 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0 0 0
6-Sep-94 INCEPT. 1,000.00 -1.50% -0.48% 29.55 985 985 -4.45% -1.43%
INCEPTION FACTOR: 3.1562
</TABLE>
EMERGING CLASS C
<TABLE>
<CAPTION>
1000
C C NAV LEVEL VALUE OF VALUE OF C
TIME ACCOUNT C AVERAGE LOAD CLASS C CLASS C INIC. AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK7 985 0.00% 10 1000 1000 0.00%
30-Sep-97 1 MO 1,115.00 -11.66% -11.66% 8.834081 883.41 883.41 -12.54% -12.54%
31-Jul-97 QTR 1,166.00 -15.52% -15.52% 8.447684 844.77 844.77 -16.37% -16.37%
31-Dec-97 YTD 1,018.89 -3.33% -3.33% 9.919436 966.74 991.94 -4.32% -4.32%
31-Oct-96 1 838 17.54% 17.54% 10 1175.42 1175.42 16.54% 16.54%
31-Oct-94 3 949 3.79% 1.25% 1037.93 1037.93 3.79% 1.25%
31-Oct-92 5 0 0 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0 0 0
6-Sep-94 INCEPT. 1,000.00 -1.50% -0.48% 0 985 985 -1.50% -0.48%
INCEPTION FACTOR: 3.1562
</TABLE>
EMERGING CLASS Y
<TABLE>
<CAPTION>
Y
TIME ACCOUNT Y AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL
<S> <C> <C> <C> <C>
31-Oct-97 BLANK 1,012.17 0.00%
30-Sep-97 1 MO 1,143.23 -11.46% -11.46%
31-Jul-97 QTR 1,192.63 -15.13% -15.13%
31-Dec-97 YTD 1,049.22 -3.53% -3.53%
31-Oct-96 1 854.9 18.40% 18.40%
31-Oct-94 3 949 6.66% 2.17%
31-Oct-92 5 0 0 0
31-Oct-87 10 0 0 0
6-Sep-94 INCEPT. 1,000.00 1.22% 0.38%
INCEPTION FACTOR: 3.1562
</TABLE>
GLOBAL LEADERS CLASS A
<TABLE>
<CAPTION>
$952.50
A NAV A A
TIME ACCOUNT A AVERAGE A/C VALUE A AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL W/LOAD CLASS ANNNUAL
<S> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,211.94 0.00% 952.5 -4.75% -4.75%
30-Sep-97 1 MO 1,266.91 -4.34% -4.34% 911.17 -8.88% -8.88%
31-Jul-97 QTR 1,291.73 -6.18% -6.18% 893.66 -10.63% -10.63%
31-Dec-97 YTD 1,233.03 -1.71% -1.71% 936.21 -6.38% -6.38%
31-Oct-96 1 1,054.92 14.88% 14.88% 1,094.28 9.43% 9.43%
31-Oct-94 3 0 0 0 0 0 0
31-Oct-92 5 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0
31-Oct-77 20 0 0 0 0 0 0
3-Jun-96 INCEPT. 1,000.00 21.19% 14.56% 1,154.37 15.44% 10.69%
INCEPTION FACTOR: 1.4137
</TABLE>
GLOBAL LEADERS CLASS B
<TABLE>
<CAPTION>
$1,000
B B NAV LEVEL VALUE OF VALUE OF B
TIME ACCOUNT B AVERAGE LOAD CLASS B CLASS B INIB. AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,198.65 0.00% 50 1,000.00 1,000.00 0.00%
30-Sep-97 1 MO 1,253.61 -4.38% -4.38% 47.808 956.15 956.15 -9.17% -9.17%
31-Jul-97 QTR 1,280.21 -6.37% -6.37% 46.814 936.29 936.29 -11.05% -11.05%
31-Dec-97 YTD 1,217.96 -1.59% -1.59% 49.415 984.14 988.3 -6.53% -6.53%
31-Oct-96 1 1,051.37 14.01% 14.01% 50 1,140.08 1,139.01 9.01% 9.01%
31-Oct-94 3 0 0 0 0 0 0 0 0
31-Oct-92 5 0 0 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0 0 0
31-Oct-77 INCEPT. 0 0 0 0 0 0 0 0
3-Jun-96 1,000.00 19.86% 13.67% 40 1,198.65 1,197.52 15.86% 10.98%
INCEPTION FACTOR: 1.4137
</TABLE>
GLOBAL LEADERS CLASS C
<TABLE>
<CAPTION>
$1,000
C C NAV LEVEL VALUE OF VALUE OF C
TIME ACCOUNT C AVERAGE LOAD CLASS C CLASS C INIC. AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,197.76 0.00% 10 1,000.00 1,000.00 0.00%
30-Sep-97 1 MO 1,252.73 -4.39% -4.39% 9.56 956.12 956.12 -5.34% -5.34%
31-Jul-97 QTR 1,278.44 -6.31% -6.31% 9.37 936.89 936.89 -7.25% -7.25%
31-Dec-97 YTD 1,216.19 -1.52% -1.52% 9.89 984.85 989.02 -2.50% -2.50%
31-Oct-96 1 1,050.49 14.02% 14.02% 10 1,140.19 1,139.12 13.02% 13.02%
31-Oct-94 3 0 0 0 0 0 0 0 0
31-Oct-92 5 0 0 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0 0 0
31-Oct-77 20 0 0 0 0 0 0 0 0
3-Jun-96 1,000.00 19.78% 13.62% 0 1,197.76 1,196.63 19.78% 13.62%
INCEPTION FACTOR: 1.4137
</TABLE>
GLOBAL LEADERS CLASS Y
<TABLE>
<CAPTION>
Y
TIME ACCOUNT Y AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL
<S> <C> <C> <C> <C>
31-Oct-97 BLANK 1,377.74 0.00%
30-Sep-97 1 MO 1,440.04 -4.33% -4.33%
31-Jul-97 QTR 1,467.18 -6.10% -6.10%
31-Dec-97 YTD 1,402.66 -1.78% -1.78%
31-Oct-96 1 1,195.74 15.22% 15.22%
31-Oct-94 3 0 0 0
31-Oct-92 5 0 0 0
31-Oct-87 10 0 0 0
1-Nov-95 INCEPT. 1,000.00 37.77% 17.35%
INCEPTION FACTOR: 2.0027
</TABLE>
GLOBAL OPPORTUNITIES CLASS A
<TABLE>
<CAPTION>
$952.50
A NAV A A
TIME ACCOUNT A AVERAGE A/C VALUE A AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL W/LOAD CLASS ANNNUAL
<S> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 3,021.76 0.00% 952.5 -4.75% -4.75%
30-Sep-97 1 MO 3,197.70 -5.50% -5.50% 900.09 -9.99% -9.99%
31-Jul-97 QTR 3,083.41 -2.00% -2.00% 933.46 -6.65% -6.65%
31-Dec-97 YTD 2,991.27 1.02% 1.02% 962.21 -3.78% -3.78%
31-Oct-96 1 2,898.53 4.25% 4.25% 993 -0.70% -0.70%
31-Oct-94 3 2,414.02 25.18% 7.77% 1,192.30 19.23% 6.04%
31-Oct-92 5 1,441.79 109.58% 15.95% 1,996.29 99.63% 14.83%
31-Oct-87 10 0 0 0 0 0 0
16-Mar-88 INCEPT. 1,000.00 202.18% 12.16% 2,878.23 187.82% 11.60%
INCEPTION FACTOR: 9.6356
</TABLE>
GLOBAL OPPORTUNITIES CLASS B
<TABLE>
<CAPTION>
$1,000
B B NAV LEVEL VALUE OF VALUE OF B
TIME ACCOUNT B AVERAGE LOAD CLASS B CLASS B INIB. AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,722.87 0.00% 50 1,000.00 1,000.00 0.00%
30-Sep-97 1 MO 1,824.62 -5.58% -5.58% 47.212 944.24 944.24 -10.30% -10.30%
31-Jul-97 QTR 1,761.60 -2.20% -2.20% 48.901 978.02 978.02 -7.09% -7.09%
31-Dec-97 YTD 1,704.01 1.11% 1.11% 50 1,011.07 1,084.61 -3.89% -3.89%
31-Oct-96 1 1,665.90 3.42% 3.42% 48.943 1,034.20 978.86 -1.47% -1.47%
31-Oct-94 3 1,408.61 22.31% 6.94% 30 1,223.10 1,157.65 19.31% 6.06%
31-Oct-92 5 0 0 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0 0 0
1-Feb-93 INCEPT. 1,000.00 72.29% 12.13% 20 1,722.87 1,616.10 70.29% 11.86%
INCEPTION FACTOR: 4.7507
</TABLE>
GLOBAL OPPORTUNITIES CLASS C
<TABLE>
<CAPTION>
$1,000
C C NAV LEVEL VALUE OF VALUE OF C
ACCOUNT C AVERAGE LOAD CLASS C CLASS C INIC. AVERAGE
YEARS VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,725.69 0.00% 10 1,000.00 1,000.00 0.00%
30-Sep-97 1 MO 1,827.43 -5.57% -5.57% 9.44 944.33 944.33 -6.51% -6.51%
31-Jul-97 QTR 1,765.17 -2.24% -2.24% 9.78 977.63 977.63 -3.21% -3.21%
31-Dec-97 YTD 1,707.65 1.06% 1.06% 10 1,010.56 1,083.93 0.06% 0.06%
31-Oct-96 1 1,668.72 3.41% 3.41% 9.79 1,034.14 978.9 2.44% 2.44%
31-Oct-94 3 1,412.16 22.20% 6.91% 1,222.02 1,156.74 22.20% 6.91%
31-Oct-92 5 0 0 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0 0 0
1-Feb-93 INCEPT. 1,000.00 72.57% 12.17% 0 1,725.69 1,618.95 72.57% 12.17%
INCEPTION FACTOR: 4.7507
</TABLE>
GLOBAL OPPORTUNITIES CLASS Y
<TABLE>
<CAPTION>
Y
ACCOUNT Y AVERAGE
YEARS VALUE CLASS ANNNUAL
<S> <C> <C> <C> <C>
31-Oct-97 BLANK 1,036.88 0.00%
30-Sep-97 1 MO 1,095.01 -5.31% -5.31%
31-Jul-97 QTR 1,052.93 -1.52% -1.52%
31-Dec-97 YTD 1,030.20 0.65% 0.65%
31-Oct-96 1 0 0 0
31-Oct-94 3 0 0 0
31-Oct-92 5 0 0 0
31-Oct-87 10 0 0 0
13-Jan-97 INCEPT. 1,000.00 3.69%
INCEPTION FACTOR: 0.8
</TABLE>
LATIN AMERICA CLASS A
<TABLE>
<CAPTION>
$952.50
A NAV A A
TIME ACCOUNT A AVERAGE A/C VALUE A AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL W/LOAD CLASS ANNNUAL
<S> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,441.73 0.00% 952.5 -4.75% -4.75%
30-Sep-97 1 MO 1,811.21 -20.40% -20.40% 758.19 -24.18% -24.18%
31-Jul-97 QTR 1,857.26 -22.37% -22.37% 739.4 -26.06% -26.06%
31-Dec-97 YTD 1,590.19 -9.34% -9.34% 863.58 -13.64% -13.64%
31-Oct-96 1 1,209.71 19.18% 19.18% 1,135.19 13.52% 13.52%
31-Oct-94 3 1,072.09 34.48% 10.38% 1,280.91 28.09% 8.60%
31-Oct-92 5 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0
1-Nov-93 INCEPT. 1,000.00 44.17% 9.57% 1,373.25 37.32% 8.25%
INCEPTION FACTOR: 4.0027
</TABLE>
LATIN AMERICA CLASS B
<TABLE>
<CAPTION>
$1,000
B B NAV LEVEL VALUE OF VALUE OF B
TIME ACCOUNT B AVERAGE LOAD CLASS B CLASS B INIB. AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,401.65 0.00% 50 1,000.00 1,000.00 0.00%
30-Sep-97 1 MO 1,761.02 -20.41% -20.41% 39.797 795.93 795.93 -24.39% -24.39%
31-Jul-97 QTR 1,808.79 -22.51% -22.51% 38.745 774.91 774.91 -26.38% -26.38%
31-Dec-97 YTD 1,544.24 -9.23% -9.23% 50 907.66 1,155.77 -14.23% -14.23%
31-Oct-96 1 1,183.85 18.40% 18.40% 50 1,183.98 1,175.77 13.40% 13.40%
31-Oct-94 3 1,064.79 31.64% 9.60% 30 1,316.37 1,230.70 28.64% 8.76%
31-Oct-92 5 0 0 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0 0 0
1-Nov-93 INCEPT. 1,000.00 40.17% 8.80% 20 1,401.65 1,291.00 38.17% 8.41%
INCEPTION FACTOR: 4.0027
</TABLE>
LATIN AMERICA CLASS C
<TABLE>
<CAPTION>
$1,000
C C NAV LEVEL VALUE OF VALUE OF C
ACCOUNT C AVERAGE LOAD CLASS C CLASS C INIC. AVERAGE
YEARS VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,402.69 0.00% 10 1,000.00 1,000.00 0.00%
30-Sep-97 1 MO 1,762.04 -20.39% -20.39% 7.96 796.06 796.06 -21.19% -21.19%
31-Jul-97 QTR 1,809.81 -22.50% -22.50% 7.75 775.04 775.04 -23.27% -23.27%
31-Dec-97 YTD 1,544.19 -9.16% -9.16% 10 908.37 1,156.67 -10.16% -10.16%
31-Oct-96 1 1,184.89 18.38% 18.38% 10 1,183.81 1,175.61 17.38% 17.38%
31-Oct-94 3 1,065.79 31.61% 9.59% 0 1,316.10 1,230.48 31.61% 9.59%
31-Oct-92 5 0 0 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0 0 0
1-Nov-93 INCEPT. 1,000.00 40.27% 8.82% 0 1,402.69 1,292.00 40.27% 8.82%
INCEPTION FACTOR: 4.0027
</TABLE>
NATURAL RESOURCES CLASS A
<TABLE>
<CAPTION>
$952.50
A NAV A A
TIME ACCOUNT A AVERAGE A/C VALUE A AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL W/LOAD CLASS ANNNUAL
<S> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,258.00 0.00% 952.5 -4.75% -4.75%
30-Sep-97 1 MO 1,377.00 -8.64% -8.64% 870.19 -12.98% -12.98%
31-Jul-97 QTR 1,377.00 -8.64% -8.64% 870.19 -12.98% -12.98%
31-Dec-97 YTD 1,159.20 8.52% 8.52% 1,033.69 3.37% 3.37%
31-Oct-96 1 1,151.00 9.30% 9.30% 1,041.05 4.10% 4.10%
31-Oct-94 3 1,003.00 25.42% 7.84% 1,194.66 19.47% 6.11%
31-Oct-92 5 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0
17-Oct-94 INCEPT. 1,000.00 25.80% 7.83% 1,198.25 19.82% 6.12%
INCEPTION FACTOR: 3.0438
</TABLE>
NATURAL RESOURCES CLASS B
<TABLE>
<CAPTION>
$1,000
B B NAV LEVEL VALUE OF VALUE OF B
TIME ACCOUNT B AVERAGE LOAD CLASS B CLASS B INIB. AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,231.00 0.00% 50 1,000.00 1,000.00 0.00%
30-Sep-97 1 MO 1,348.00 -8.68% -8.68% 45.66 913.2 913.2 -13.25% -13.25%
31-Jul-97 QTR 1,349.00 -8.75% -8.75% 45.626 912.53 912.53 -13.31% -13.31%
31-Dec-97 YTD 1,131.94 8.75% 8.75% 50 1,087.51 1,232.23 3.75% 3.75%
31-Oct-96 1 1,134.00 8.55% 8.55% 50 1,085.54 1,085.54 3.55% 3.55%
31-Oct-94 3 1,003.00 22.73% 7.07% 30 1,227.32 1,227.32 19.73% 6.19%
31-Oct-92 5 0 0 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0 0 0
17-Oct-94 INCEPT. 1,000.00 23.10% 7.07% 30 1,231.00 1,231.00 20.10% 6.20%
INCEPTION FACTOR: 3.0438
</TABLE>
NATURAL RESOURCES CLASS C
<TABLE>
<CAPTION>
$1,000
C C NAV LEVEL VALUE OF VALUE OF C
TIME ACCOUNT C AVERAGE LOAD CLASS C CLASS C INIC. AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 1,231.00 0.00% 10 1,000.00 1,000.00 0.00%
30-Sep-97 1 MO 1,347.00 -8.61% -8.61% 9.14 913.88 913.88 -9.53% -9.53%
31-Jul-97 QTR 1,349.00 -8.75% -8.75% 9.13 912.53 912.53 -9.66% -9.66%
31-Dec-97 YTD 1,130.94 8.85% 8.85% 10 1,088.48 1,233.47 7.85% 7.85%
31-Oct-96 1 1,134.00 8.55% 8.55% 10 1,085.54 1,085.54 7.55% 7.55%
31-Oct-94 3 1,003.00 22.73% 7.07% 0 1,227.32 1,227.32 22.73% 7.07%
31-Oct-92 5 0 0 0 0 0 0 0 0
31-Oct-87 10 0 0 0 0 0 0 0 0
17-Oct-94 INCEPT. 1,000.00 23.10% 7.07% 0 1,231.00 1,231.00 23.10% 7.07%
INCEPTION FACTOR: 3.0438
</TABLE>
EVERGREEN INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
$1,000
B B NAV LEVEL VALUE OF VALUE OF B
TIME ACCOUNT B AVERAGE LOAD CLASS B CLASS B INIB. AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 8,383.24 0.00% 40 1,000.00 1,000.00 0.00%
30-Sep-97 1 MO 9,042.27 -7.29% -7.29% 37.085 927.12 927.12 -11.00% -11.00%
31-Jul-97 QTR 9,216.72 -9.04% -9.04% 27.287 909.57 909.57 -11.77% -11.77%
31-Dec-96 YTD 7,679.49 9.16% 9.16% 30 1,091.64 1,061.35 6.16% 6.16%
31-Oct-96 1 7,246.04 15.69% 15.69% 30 1,156.94 1,124.84 12.69% 12.69%
31-Oct-94 3 6,418.85 30.60% 9.31% 10 1,306.03 1,113.26 29.60% 9.03%
31-Oct-92 5 4,847.34 72.94% 11.58% 0 1,729.45 1,458.68 72.94% 11.58%
31-Oct-87 10 4,475.56 87.31% 6.48% 1,873.11 1,133.68 87.31% 6.48%
1-Dec-75 INCEPT. 1,000.00 738.32% 10.18% 0 8,383.24 2,826.80 738.32% 10.18%
INCEPTION FACTOR: 21.9342 21.9342
</TABLE>
PRECIOUS METALS
<TABLE>
<CAPTION>
$1,000
B B NAV LEVEL VALUE OF VALUE OF B
TIME ACCOUNT B AVERAGE LOAD CLASS B CLASS B INIB. AVERAGE
YEARS PERIOD VALUE CLASS ANNNUAL COMP INVESTMENT INVESTMENT CUMULATIVE ANNUAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
31-Oct-97 BLANK 5,007.94 0.00% 40 1,000.00 1,000.00 0.00%
30-Sep-97 1 MO 6,052.44 -17.26% -17.26% 33.097 827.42 827.42 -20.57% -20.57%
31-Jul-97 QTR 5,730.57 -12.61% -12.61% 26.217 873.9 873.9 -15.23% -15.23%
31-Dec-96 YTD 7,021.21 -28.67% -28.67% 21.398 713.26 713.26 -30.81% -30.81%
31-Oct-96 1 7,315.93 -31.55% -31.55% 19.674 684.52 655.79 -33.51% -33.51%
31-Oct-94 3 7,767.37 -35.53% -13.61% 6.158 644.74 615.83 -36.14% -13.89%
31-Oct-92 5 4,163.41 20.28% 3.76% 0 1,202.84 1,146.68 20.28% 3.76%
31-Oct-87 10 4,897.98 2.24% 0.22% 1,022.45 861.1 2.24% 0.22%
30-Jan-78 INCEPT. 1,000.00 400.79% 8.49% 0 5,007.94 2,515.06 400.79% 8.49%
INCEPTION FACTOR: 19.7671 19.7671
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN EMERGING MARKETS FUND CLASS A
<SERIES>
<NUMBER> 101
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 74,173,434
<INVESTMENTS-AT-VALUE> 73,721,473
<RECEIVABLES> 1,103,345
<ASSETS-OTHER> 74,069
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 74,898,887
<PAYABLE-FOR-SECURITIES> 5,425,941
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 252,022
<TOTAL-LIABILITIES> 5,677,963
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,660,818
<SHARES-COMMON-STOCK> 277,892
<SHARES-COMMON-PRIOR> 194,446
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (20,892)
<ACCUMULATED-NET-GAINS> 158,862
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (21,992)
<NET-ASSETS> 2,776,796
<DIVIDEND-INCOME> 26,900
<INTEREST-INCOME> 11,961
<OTHER-INCOME> 0
<EXPENSES-NET> (39,445)
<NET-INVESTMENT-INCOME> (584)
<REALIZED-GAINS-CURRENT> 147,823
<APPREC-INCREASE-CURRENT> (20,215)
<NET-CHANGE-FROM-OPS> 127,024
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 383,278
<NUMBER-OF-SHARES-REDEEMED> (289,832)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,032,860
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (33,884)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (51,028)
<AVERAGE-NET-ASSETS> 2,262,265
<PER-SHARE-NAV-BEGIN> 8.46
<PER-SHARE-NII> 0.00
<PER-SHARE-GAIN-APPREC> 1.53
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.99
<EXPENSE-RATIO> 1.75
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN EMERGING MARKETS FUND CLASS B
<SERIES>
<NUMBER> 102
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 74,173,434
<INVESTMENTS-AT-VALUE> 73,721,473
<RECEIVABLES> 1,103,345
<ASSETS-OTHER> 74,069
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 74,898,887
<PAYABLE-FOR-SECURITIES> 5,425,941
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 252,022
<TOTAL-LIABILITIES> 5,677,963
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3,862,960
<SHARES-COMMON-STOCK> 407,935
<SHARES-COMMON-PRIOR> 343,322
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (48,150)
<ACCUMULATED-NET-GAINS> 240,959
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (35,613)
<NET-ASSETS> 4,020,156
<DIVIDEND-INCOME> 44,010
<INTEREST-INCOME> 18,953
<OTHER-INCOME> 0
<EXPENSES-NET> (91,350)
<NET-INVESTMENT-INCOME> (28,387)
<REALIZED-GAINS-CURRENT> 266,612
<APPREC-INCREASE-CURRENT> (32,735)
<NET-CHANGE-FROM-OPS> 205,490
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 164,864
<NUMBER-OF-SHARES-REDEEMED> (100,251)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 922,482
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (55,448)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (110,107)
<AVERAGE-NET-ASSETS> 3,663,453
<PER-SHARE-NAV-BEGIN> 8.39
<PER-SHARE-NII> (0.08)
<PER-SHARE-GAIN-APPREC> 1.54
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.85
<EXPENSE-RATIO> 2.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN EMERGING MARKETS FUND CLASS C
<SERIES>
<NUMBER> 103
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 74,173,434
<INVESTMENTS-AT-VALUE> 73,721,473
<RECEIVABLES> 1,103,345
<ASSETS-OTHER> 74,069
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 74,898,887
<PAYABLE-FOR-SECURITIES> 5,425,941
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 252,022
<TOTAL-LIABILITIES> 5,677,963
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,319,829
<SHARES-COMMON-STOCK> 130,192
<SHARES-COMMON-PRIOR> 10,089
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (10,144)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (20,149)
<ACCUM-APPREC-OR-DEPREC> (7,404)
<NET-ASSETS> 1,282,132
<DIVIDEND-INCOME> 9,849
<INTEREST-INCOME> 4,701
<OTHER-INCOME> 0
<EXPENSES-NET> (18,992)
<NET-INVESTMENT-INCOME> (4,442)
<REALIZED-GAINS-CURRENT> 97,223
<APPREC-INCREASE-CURRENT> (6,806)
<NET-CHANGE-FROM-OPS> 85,975
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 128,876
<NUMBER-OF-SHARES-REDEEMED> (8,773)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,294,159
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (11,598)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (22,892)
<AVERAGE-NET-ASSETS> 761,678
<PER-SHARE-NAV-BEGIN> 8.38
<PER-SHARE-NII> (0.06)
<PER-SHARE-GAIN-APPREC> 1.53
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 9.85
<EXPENSE-RATIO> 2.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN EMERGING MARKETS FUND CLASS Y
<SERIES>
<NUMBER> 104
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 74,173,434
<INVESTMENTS-AT-VALUE> 73,721,473
<RECEIVABLES> 1,103,345
<ASSETS-OTHER> 74,069
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 74,898,887
<PAYABLE-FOR-SECURITIES> 5,425,941
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 252,022
<TOTAL-LIABILITIES> 5,677,963
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 60,509,276
<SHARES-COMMON-STOCK> 6,086,862
<SHARES-COMMON-PRIOR> 3,413,310
<ACCUMULATED-NII-CURRENT> 145,932
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 877,750
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (391,118)
<NET-ASSETS> 61,141,840
<DIVIDEND-INCOME> 474,849
<INTEREST-INCOME> 227,318
<OTHER-INCOME> 0
<EXPENSES-NET> (600,926)
<NET-INVESTMENT-INCOME> 101,241
<REALIZED-GAINS-CURRENT> 2,592,031
<APPREC-INCREASE-CURRENT> (359,516)
<NET-CHANGE-FROM-OPS> 2,333,756
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,444,422
<NUMBER-OF-SHARES-REDEEMED> (770,870)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 32,402,617
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (602,892)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (810,518)
<AVERAGE-NET-ASSETS> 40,234,047
<PER-SHARE-NAV-BEGIN> 8.48
<PER-SHARE-NII> 0.03
<PER-SHARE-GAIN-APPREC> 1.53
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 10.04
<EXPENSE-RATIO> 1.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN NATURAL RESOURCES FUND CLASS A
<SERIES>
<NUMBER> 105
<S> <C>
<PERIOD-TYPE> 7-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 15,654,634
<INVESTMENTS-AT-VALUE> 20,939,216
<RECEIVABLES> 1,640,400
<ASSETS-OTHER> 54,490
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 22,634,106
<PAYABLE-FOR-SECURITIES> 258,525
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 437,063
<TOTAL-LIABILITIES> 695,588
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,450,169
<SHARES-COMMON-STOCK> 309,171
<SHARES-COMMON-PRIOR> 320,781
<ACCUMULATED-NII-CURRENT> 113,791
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 334,061
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 992,085
<NET-ASSETS> 3,890,106
<DIVIDEND-INCOME> 51,762
<INTEREST-INCOME> 1,530
<OTHER-INCOME> 0
<EXPENSES-NET> (52,833)
<NET-INVESTMENT-INCOME> 459
<REALIZED-GAINS-CURRENT> 347,564
<APPREC-INCREASE-CURRENT> (117,832)
<NET-CHANGE-FROM-OPS> 230,191
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 20,364
<NUMBER-OF-SHARES-REDEEMED> (79,574)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (571,499)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (26,335)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (53,046)
<AVERAGE-NET-ASSETS> 4,445,318
<PER-SHARE-NAV-BEGIN> 12.11
<PER-SHARE-NII> 0.03
<PER-SHARE-GAIN-APPREC> 0.44
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.58
<EXPENSE-RATIO> 2.01
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN NATURAL RESOURCES FUND CLASS B
<SERIES>
<NUMBER> 106
<S> <C>
<PERIOD-TYPE> 7-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 15,654,634
<INVESTMENTS-AT-VALUE> 20,939,216
<RECEIVABLES> 1,640,400
<ASSETS-OTHER> 54,490
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 22,634,106
<PAYABLE-FOR-SECURITIES> 258,525
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 437,063
<TOTAL-LIABILITIES> 695,588
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 10,918,179
<SHARES-COMMON-STOCK> 1,245,625
<SHARES-COMMON-PRIOR> 1,310,124
<ACCUMULATED-NII-CURRENT> 43,450
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 1,392,893
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,978,111
<NET-ASSETS> 15,332,633
<DIVIDEND-INCOME> 200,866
<INTEREST-INCOME> 6,039
<OTHER-INCOME> 0
<EXPENSES-NET> (286,900)
<NET-INVESTMENT-INCOME> (79,995)
<REALIZED-GAINS-CURRENT> 1,372,297
<APPREC-INCREASE-CURRENT> (575,511)
<NET-CHANGE-FROM-OPS> 716,791
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 78,508
<NUMBER-OF-SHARES-REDEEMED> (279,700)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (1,875,432)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (103,255)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (287,732)
<AVERAGE-NET-ASSETS> 17,375,128
<PER-SHARE-NAV-BEGIN> 11.89
<PER-SHARE-NII> (0.07)
<PER-SHARE-GAIN-APPREC> 0.49
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.31
<EXPENSE-RATIO> 2.79
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN NATURAL RESOURCES FUND CLASS C
<SERIES>
<NUMBER> 107
<S> <C>
<PERIOD-TYPE> 7-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 15,654,634
<INVESTMENTS-AT-VALUE> 20,939,216
<RECEIVABLES> 1,640,400
<ASSETS-OTHER> 54,490
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 22,634,106
<PAYABLE-FOR-SECURITIES> 258,525
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 437,063
<TOTAL-LIABILITIES> 695,588
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,938,287
<SHARES-COMMON-STOCK> 220,686
<SHARES-COMMON-PRIOR> 351,136
<ACCUMULATED-NII-CURRENT> 17,397
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 407,692
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 352,403
<NET-ASSETS> 2,715,779
<DIVIDEND-INCOME> 54,055
<INTEREST-INCOME> 1,635
<OTHER-INCOME> 0
<EXPENSES-NET> (78,224)
<NET-INVESTMENT-INCOME> (22,534)
<REALIZED-GAINS-CURRENT> 360,095
<APPREC-INCREASE-CURRENT> (142,650)
<NET-CHANGE-FROM-OPS> 194,911
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 27,528
<NUMBER-OF-SHARES-REDEEMED> (190,823)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (1,851,673)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (28,043)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (78,442)
<AVERAGE-NET-ASSETS> 4,548,640
<PER-SHARE-NAV-BEGIN> 11.89
<PER-SHARE-NII> (0.13)
<PER-SHARE-GAIN-APPREC> 0.55
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.31
<EXPENSE-RATIO> 2.79
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN GLOBAL LEADERS FUND CLASS A
<SERIES>
<NUMBER> 108
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 191,718,042
<INVESTMENTS-AT-VALUE> 210,486,997
<RECEIVABLES> 2,909,830
<ASSETS-OTHER> 85,216
<OTHER-ITEMS-ASSETS> 33,150
<TOTAL-ASSETS> 213,515,193
<PAYABLE-FOR-SECURITIES> 197,829
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,491,931
<TOTAL-LIABILITIES> 2,689,760
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 35,005,639
<SHARES-COMMON-STOCK> 2,823,790
<SHARES-COMMON-PRIOR> 1,089,521
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,809)
<ACCUMULATED-NET-GAINS> 162,660
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,437,363
<NET-ASSETS> 38,603,853
<DIVIDEND-INCOME> 448,949
<INTEREST-INCOME> 46,825
<OTHER-INCOME> 0
<EXPENSES-NET> 623,892
<NET-INVESTMENT-INCOME> (128,118)
<REALIZED-GAINS-CURRENT> 293,716
<APPREC-INCREASE-CURRENT> 2,791,278
<NET-CHANGE-FROM-OPS> 2,956,876
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (15,146)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,037,338
<NUMBER-OF-SHARES-REDEEMED> (304,314)
<SHARES-REINVESTED> 1,245
<NET-CHANGE-IN-ASSETS> 25,478,167
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 11,412
<OVERDISTRIB-NII-PRIOR> (421)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 256,096
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 645,355
<AVERAGE-NET-ASSETS> 27,070,188
<PER-SHARE-NAV-BEGIN> 11.91
<PER-SHARE-NII> (0.01)
<PER-SHARE-GAIN-APPREC> 1.78
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.01)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 13.67
<EXPENSE-RATIO> 1.91
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN GLOBAL LEADERS FUND CLASS B
<SERIES>
<NUMBER> 109
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 191,718,042
<INVESTMENTS-AT-VALUE> 210,486,997
<RECEIVABLES> 2,909,830
<ASSETS-OTHER> 85,216
<OTHER-ITEMS-ASSETS> 33,150
<TOTAL-ASSETS> 213,515,193
<PAYABLE-FOR-SECURITIES> 197,829
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,491,931
<TOTAL-LIABILITIES> 2,689,760
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 121,850,460
<SHARES-COMMON-STOCK> 9,936,877
<SHARES-COMMON-PRIOR> 3,534,772
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (6,296)
<ACCUMULATED-NET-GAINS> 566,204
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 11,965,043
<NET-ASSETS> 134,375,411
<DIVIDEND-INCOME> 1,562,739
<INTEREST-INCOME> 162,991
<OTHER-INCOME> 0
<EXPENSES-NET> 2,171,691
<NET-INVESTMENT-INCOME> (445,961)
<REALIZED-GAINS-CURRENT> 1,022,393
<APPREC-INCREASE-CURRENT> 9,716,105
<NET-CHANGE-FROM-OPS> 10,292,537
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (48,643)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 6,953,600
<NUMBER-OF-SHARES-REDEEMED> (555,510)
<SHARES-REINVESTED> 4,015
<NET-CHANGE-IN-ASSETS> 93,558,332
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 39,723
<OVERDISTRIB-NII-PRIOR> (1,465)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 891,440
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 2,246,402
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 11.87
<PER-SHARE-NII> (0.11)
<PER-SHARE-GAIN-APPREC> 1.77
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.01)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 13.52
<EXPENSE-RATIO> 2.66
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN GLOBAL LEADERS FUND CLASS C
<SERIES>
<NUMBER> 110
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 191,718,042
<INVESTMENTS-AT-VALUE> 210,486,997
<RECEIVABLES> 2,909,830
<ASSETS-OTHER> 85,216
<OTHER-ITEMS-ASSETS> 33,150
<TOTAL-ASSETS> 213,515,193
<PAYABLE-FOR-SECURITIES> 197,829
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,491,931
<TOTAL-LIABILITIES> 2,689,760
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,163,236
<SHARES-COMMON-STOCK> 176,636
<SHARES-COMMON-PRIOR> 46,694
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (112)
<ACCUMULATED-NET-GAINS> 10,052
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 212,418
<NET-ASSETS> 2,385,594
<DIVIDEND-INCOME> 27,744
<INTEREST-INCOME> 2,894
<OTHER-INCOME> 0
<EXPENSES-NET> 38,554
<NET-INVESTMENT-INCOME> (7,916)
<REALIZED-GAINS-CURRENT> 18,151
<APPREC-INCREASE-CURRENT> 172,492
<NET-CHANGE-FROM-OPS> 182,727
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (735)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 173,061
<NUMBER-OF-SHARES-REDEEMED> (43,171)
<SHARES-REINVESTED> 52
<NET-CHANGE-IN-ASSETS> 1,839,420
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 705
<OVERDISTRIB-NII-PRIOR> (26)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 15,826
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 39,881
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 11.86
<PER-SHARE-NII> (0.11)
<PER-SHARE-GAIN-APPREC> 1.77
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.01)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 13.51
<EXPENSE-RATIO> 2.65
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN GLOBAL LEADERS FUND CLASS Y
<SERIES>
<NUMBER> 111
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 191,718,042
<INVESTMENTS-AT-VALUE> 210,486,997
<RECEIVABLES> 2,909,830
<ASSETS-OTHER> 85,216
<OTHER-ITEMS-ASSETS> 33,150
<TOTAL-ASSETS> 213,515,193
<PAYABLE-FOR-SECURITIES> 197,829
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,491,931
<TOTAL-LIABILITIES> 2,689,760
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 32,155,343
<SHARES-COMMON-STOCK> 2,586,664
<SHARES-COMMON-PRIOR> 1,562,068
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,661)
<ACCUMULATED-NET-GAINS> 149,417
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,157,476
<NET-ASSETS> 35,460,575
<DIVIDEND-INCOME> 412,394
<INTEREST-INCOME> 43,012
<OTHER-INCOME> 0
<EXPENSES-NET> 573,092
<NET-INVESTMENT-INCOME> (117,686)
<REALIZED-GAINS-CURRENT> 269,801
<APPREC-INCREASE-CURRENT> 2,564,001
<NET-CHANGE-FROM-OPS> 2,716,116
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (19,126)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,227,611
<NUMBER-OF-SHARES-REDEEMED> (203,730)
<SHARES-REINVESTED> 715
<NET-CHANGE-IN-ASSETS> 15,866,330
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 10,483
<OVERDISTRIB-NII-PRIOR> (387)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 235,244
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 592,807
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 11.91
<PER-SHARE-NII> 0.03
<PER-SHARE-GAIN-APPREC> 1.78
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.01)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 13.71
<EXPENSE-RATIO> 1.64
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN GLOBAL OPPORTUNITIES FUND CLASS A
<SERIES>
<NUMBER> 112
<S> <C>
<PERIOD-TYPE> 1-MO
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> SEP-30-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 293,749,006
<INVESTMENTS-AT-VALUE> 348,759,584
<RECEIVABLES> 14,326,581
<ASSETS-OTHER> 522,028
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 363,608,193
<PAYABLE-FOR-SECURITIES> 1,374,945
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,862,702
<TOTAL-LIABILITIES> 5,237,647
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 71,312,023
<SHARES-COMMON-STOCK> 4,166,415
<SHARES-COMMON-PRIOR> 4,556,835
<ACCUMULATED-NII-CURRENT> 2,824,475
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 5,170,503
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 18,723,512
<NET-ASSETS> 98,030,513
<DIVIDEND-INCOME> 25,008
<INTEREST-INCOME> 17,153
<OTHER-INCOME> 0
<EXPENSES-NET> (172,025)
<NET-INVESTMENT-INCOME> (129,864)
<REALIZED-GAINS-CURRENT> 2,466,479
<APPREC-INCREASE-CURRENT> (8,004,724)
<NET-CHANGE-FROM-OPS> (5,668,109)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 205,158
<NUMBER-OF-SHARES-REDEEMED> (595,578)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (15,396,436)
<ACCUMULATED-NII-PRIOR> 2,345,530
<ACCUMULATED-GAINS-PRIOR> 3,363,304
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (90,283)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (173,239)
<AVERAGE-NET-ASSETS> 109,207,591
<PER-SHARE-NAV-BEGIN> 24.90
<PER-SHARE-NII> 0.02
<PER-SHARE-GAIN-APPREC> (1.39)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 23.53
<EXPENSE-RATIO> 1.87
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN GLOBAL OPPORTUNITIES FUND CLASS B
<SERIES>
<NUMBER> 113
<S> <C>
<PERIOD-TYPE> 1-MO
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> SEP-30-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 293,749,006
<INVESTMENTS-AT-VALUE> 348,759,584
<RECEIVABLES> 14,326,581
<ASSETS-OTHER> 522,028
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 363,608,193
<PAYABLE-FOR-SECURITIES> 1,374,945
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,862,702
<TOTAL-LIABILITIES> 5,237,647
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 178,509,095
<SHARES-COMMON-STOCK> 9,540,331
<SHARES-COMMON-PRIOR> 9,942,489
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,650,967)
<ACCUMULATED-NET-GAINS> 14,175,669
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 25,437,197
<NET-ASSETS> 216,470,994
<DIVIDEND-INCOME> 53,801
<INTEREST-INCOME> 37,064
<OTHER-INCOME> 0
<EXPENSES-NET> (521,443)
<NET-INVESTMENT-INCOME> (430,578)
<REALIZED-GAINS-CURRENT> 5,315,301
<APPREC-INCREASE-CURRENT> (17,834,393)
<NET-CHANGE-FROM-OPS> (12,949,670)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 22,401
<NUMBER-OF-SHARES-REDEEMED> (424,559)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (22,507,090)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 10,032,944
<OVERDISTRIB-NII-PRIOR> (2,434,919)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (195,022)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (524,061)
<AVERAGE-NET-ASSETS> 235,344,004
<PER-SHARE-NAV-BEGIN> 24.03
<PER-SHARE-NII> (0.06)
<PER-SHARE-GAIN-APPREC> (1.28)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 22.69
<EXPENSE-RATIO> 2.62
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN GLOBAL OPPORTUNITIES FUND CLASS C
<SERIES>
<NUMBER> 114
<S> <C>
<PERIOD-TYPE> 1-MO
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> SEP-30-1997
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 293,749,006
<INVESTMENTS-AT-VALUE> 348,759,584
<RECEIVABLES> 14,326,581
<ASSETS-OTHER> 522,028
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 363,608,193
<PAYABLE-FOR-SECURITIES> 1,374,945
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,862,702
<TOTAL-LIABILITIES> 5,237,647
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 30,465,945
<SHARES-COMMON-STOCK> 1,929,900
<SHARES-COMMON-PRIOR> 2,057,099
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (633,102)
<ACCUMULATED-NET-GAINS> 3,915,582
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN GLOBAL OPPORTUNITIES FUND CLASS Y
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<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
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<GROSS-ADVISORY-FEES> 0
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<GROSS-EXPENSE> 0
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<PER-SHARE-NAV-BEGIN> 25.24
<PER-SHARE-NII> 0.00
<PER-SHARE-GAIN-APPREC> (1.34)
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<PER-SHARE-DISTRIBUTIONS> 0.00
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 23.90
<EXPENSE-RATIO> 1.62
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN INTERNATIONAL EQUITY FUND CLASS A
<SERIES>
<NUMBER> 116
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<ACCUM-APPREC-OR-DEPREC> (294,136)
<NET-ASSETS> 9,269,541
<DIVIDEND-INCOME> 127,086
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<NUMBER-OF-SHARES-SOLD> 1,195,960
<NUMBER-OF-SHARES-REDEEMED> (1,061,687)
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<NET-CHANGE-IN-ASSETS> 1,747,982
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<GROSS-EXPENSE> (114,746)
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<PER-SHARE-NAV-BEGIN> 10.43
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<PER-SHARE-DIVIDEND> (0.15)
<PER-SHARE-DISTRIBUTIONS> 0.00
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<PER-SHARE-NAV-END> 11.07
<EXPENSE-RATIO> 1.25
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN INTERNATIONAL EQUITY FUND CLASS B
<SERIES>
<NUMBER> 117
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 273,449,897
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<RECEIVABLES> 10,501,872
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<ACCUMULATED-NET-GAINS> 1,077,129
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (668,845)
<NET-ASSETS> 22,163,817
<DIVIDEND-INCOME> 289,761
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<NUMBER-OF-SHARES-REDEEMED> (237,081)
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN INTERNATIONAL EQUITY FUND CLASS C
<SERIES>
<NUMBER> 118
<S> <C>
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<PERIOD-START> NOV-01-1996
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN INTERNATIONAL EQUITY FUND CLASS Y
<SERIES>
<NUMBER> 119
<S> <C>
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<FISCAL-YEAR-END> OCT-31-1997
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> KEYSTONE INTERNATIONAL FUND CLASS A
<SERIES>
<NUMBER> 120
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> KEYSTONE PRECIOUS METALS HOLDINGS, INC. CLASS A
<SERIES>
<NUMBER> 121
<S> <C>
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN LATIN AMERICA FUND CLASS A
<SERIES>
<NUMBER> 122
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
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</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN LATIN AMERICA FUND CLASS B
<SERIES>
<NUMBER> 123
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
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<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<CIK> 0001046027
<NAME> EVERGREEN LATIN AMERICA FUND CLASS C
<SERIES>
<NUMBER> 124
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> OCT-31-1997
<INVESTMENTS-AT-COST> 106,696,924
<INVESTMENTS-AT-VALUE> 100,758,979
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 108,175,844
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<OTHER-ITEMS-LIABILITIES> 784,099
<TOTAL-LIABILITIES> 8,323,009
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<PAID-IN-CAPITAL-COMMON> 9,958,512
<SHARES-COMMON-STOCK> 848,711
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<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (49,476)
<ACCUMULATED-NET-GAINS> 2,302,091
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<NET-ASSETS> 10,961,203
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<NET-INVESTMENT-INCOME> (59,769)
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<APPREC-INCREASE-CURRENT> (2,121,476)
<NET-CHANGE-FROM-OPS> 1,521,512
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (62,177)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 305,017
<NUMBER-OF-SHARES-REDEEMED> (261,244)
<SHARES-REINVESTED> 4,841
<NET-CHANGE-IN-ASSETS> 2,169,991
<ACCUMULATED-NII-PRIOR> 0
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<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> (87,416)
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> (284,601)
<AVERAGE-NET-ASSETS> 11,545,412
<PER-SHARE-NAV-BEGIN> 10.99
<PER-SHARE-NII> (0.07)
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<PER-SHARE-DIVIDEND> (0.08)
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<PER-SHARE-NAV-END> 12.92
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<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
