Evergreen
INTERNATIONAL
AND
GLOBAL
GROWTH FUNDS
April 30, 1998
Semiannual Report
(logo appears here)
Evergreen Funds(sm)
Since 1932
<PAGE>
Table of Contents
<TABLE>
<S> <C>
Letter to Shareholders ..................... 1
Evergreen Global Opportunities Fund
Fund at a Glance ........................ 2
Portfolio Manager Interview ............. 3
Evergreen International Growth Fund
Fund at a Glance ........................ 6
Portfolio Manager Interview ............. 7
Evergreen Latin America Fund
Fund at a Glance ........................ 10
Portfolio Manager Interview ............. 11
Evergreen Natural Resources Fund
Fund at a Glance ........................ 14
Portfolio Manager Interview ............. 15
Evergreen Precious Metals Fund
Fund at a Glance ........................ 18
Portfolio Manager Interview ............. 19
</TABLE>
<TABLE>
<S> <C>
Financial Highlights
Evergreen Global Opportunities Fund ..... 22
Evergreen International Growth Fund ..... 26
Evergreen Latin America Fund ............ 29
Evergreen Natural Resources Fund ........ 31
Evergreen Precious Metals Fund .......... 33
Schedules of Investments
Evergreen Global Opportunities Fund ..... 36
Evergreen International Growth Fund ..... 42
Evergreen Latin America Fund ............ 47
Evergreen Natural Resources Fund ........ 50
Evergreen Precious Metals Fund .......... 52
Statements of Assets and Liabilities ....... 54
Statements of Operations ................... 55
Statements of Changes in Net Assets --
Six Months Ended April 30, 1998
(Unaudited) .......................... 56
Statements of Changes in Net Assets --
Period ended October 31, 1997 ........... 57
Statements of Changes in Net Assets --
Prior Periods ........................... 58
Notes to Financial Statements .............. 59
Additional Information ..................... 66
</TABLE>
- --------------------------------------------------------------------------------
Evergreen Funds
Evergreen Funds is one of the nation's fastest growing investment companies
with more than $47 billion in assets under management.
With over 80 mutual funds to choose among and acclaimed service and operations
capabilities, investors enjoy a broader range of quality investment products
and services designed to meet their needs.
The Evergreen Funds employ intensive, research-driven investment strategies
executed by over 90 research analysts and portfolio managers. The fund company
remains dedicated to meeting the needs of investors and their advisors in a
global economy. Look to the Evergreen Funds to provide a distinctive level of
service and excellence in investment management.
This semiannual report must be preceded or accompanied by a prospectus of an
Evergreen fund contained herein. The prospectus contains more complete
information, including fees and expenses, and should be read carefully before
investing or sending money.
<TABLE>
<S> <C>
Mutual Funds: ARE NOT FDIC INSURED May lose value o Are not bank guaranteed
</TABLE>
Evergreen Funds Distributor, Inc.
International investing involves increased risk and volatility.
<PAGE>
Letter to Shareholders
----------------------
June 1998
Dear Shareholders:
Investing in the global markets during recent
(Photo of William M. months has been nothing, if not interesting.
Ennis) Fortunately for most investors, it also has
been rewarding.
William M. Ennis In general, the world stock markets had a
Managing Director buoyant run during the six months ending
April 30, 1998, the period of this semiannual
report. Led by the continued health of the U.S. economy and by the very strong
economic recovery in Western Europe, most markets posted strong gains, as
evidenced by the 18.86% return of the Morgan Stanley Capital International
(MSCI) World Index. The exceptions, of course, were in Asia and the emerging
markets. The financial and currency crisis that erupted in October 1997
throughout the Pacific Basin has been persistent in its effects in the region.
Equity investments in Japan, Hong Kong and other Asian nations have been
challenging, to say the least. These problems have tarnished other emerging
markets, most notably in Latin America, despite good long-term prospects.
Large Cap Leadership
During the six months, the leadership in both the United States and Western
Europe has been maintained by the large, well-established, "blue chip"
companies that have been able to improve earnings, take advantage of their
visibility, and, in many cases, strengthen themselves through strategic
acquisitions. These large-cap companies have also attracted the major share of
the new investment dollars in their markets. Smaller and mid-sized companies,
as a group, have not experienced the same strength in stock performance,
although recent stock price valuations have been very attractive for smaller
companies, especially for those that have shown an ability to improve their
earnings.
The general strength of the world's equity markets, even with the exceptions
highlighted by the Asian crisis, demonstrates the importance of global
diversification of an investment portfolio. At Evergreen, we strongly believe
that most growth-oriented investors should have at least part of their equity
investments in global or international funds, both to take advantage of
opportunities not available in the United States and to increase the
diversification and risk profile of their overall portfolios.
We are very pleased to offer a strong group of international and global funds,
each of which has its own distinct strategy, reflecting the varying objectives,
and risk tolerances of different investors. In the following pages, we present
specific reports on the management and performance of Evergreen International
and Global Growth Funds for the six-month period.
The Evergreen Commitment
At Evergreen Funds, we are committed to providing a strong array of funds with
complementary objectives and strategies to help investors and their financial
advisors assemble personal portfolios that make sense for their needs and risk
tolerances.
We can assist by providing the information you need about our funds. If you
have any questions about the Evergreen International and Global Growth Funds or
other Evergreen Funds, we encourage you to consult your financial advisor or
call us at 800-343-2898.
Thank you for your continued investment with Evergreen Funds.
Sincerely,
/s/ William M. Ennis
William M. Ennis
Managing Director
Evergreen Funds
1
<PAGE>
EVERGREEN
Global Opportunities Fund
Fund at a Glance as of April 30, 1998
We saw the primary opportunity in Western Europe, where cyclical and structural
changes are happening to favor equity markets.
Portfolio
Management
----------
(Photo of Gary Craven)
Gary Craven
Tenure: January 1998
(Photo of Gilman Gunn)
Gilman Gunn
Tenure: June 1997
-------------------------------------------------------
CURRENT INVESTMENT STYLE
Morningstar's Style Box is based on a
portfolio date as of 3/31/98.
(GRAPHIC)
The Equity Style Box placement is based on a
fund's price-to-earnings and price-to-book
ratio relative to the S&P 500, as well as
the size of the companies in which it
invests, or median market capitalization.
Source: 1998 Morningstar, Inc.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS*
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Class A Class B Class C Class Y
Inception Date 3/16/88 2/1/93 2/1/93 1/13/97
........................................................................
Average Annual Returns
........................................................................
6 months with sales charge 8.97% 9.03% 13.05% n/a
........................................................................
6 months w/o sales charge 14.41% 14.03% 14.05% 14.91%
........................................................................
1 year with sales charge 22.04% 22.21% 26.27% n/a
........................................................................
1 year w/o sales charge 28.13% 27.21% 27.27% 30.03%
........................................................................
3 years 10.88% 11.06% 11.84% --
........................................................................
5 years 13.16% 13.17% 13.46% --
........................................................................
10 years 12.66% -- -- --
........................................................................
Since Inception 12.48% 13.63% 13.78% 14.51%
........................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
........................................................................
6-month capital gain
distributions per share $ 1.53 $ 1.53 $ 1.53 $ 1.53
........................................................................
</TABLE>
*Adjusted for maximum sales charge.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
4/88 4/90 4/92 4/94 4/96 4/98
Class A Shares 9,525 10,665 13,469 21,961 29,636 32,926
MSCIWI 10,000 10,855 11,890 15,545 20,448 29,353
CPI 10,000 11,008 11,913 12,587 13,337 13,877
</TABLE>
Comparison of a $10,000 investment in Evergreen Global Opportunities Fund,
Class A shares, versus a similar investment in the Morgan Stanley Capital
International World Index (MSCIWI), and the Consumer Price Index (CPI).
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. The MSCIWI is an unmanaged index and does not include
transaction costs associated with buying and selling securities nor any
management fees. The Consumer Price Index is a commonly used measure of
inflation and does not represent an investment return. It is not possible to
invest directly in an index.
2
<PAGE>
EVERGREEN
Global Opportunities Fund
Portfolio Manager Interview
Gary Craven is the portfolio manager for the U.S. portion
of the Fund.
Gilman Gunn manages the Fund's international investments.
- --------------------------------------------------------------------------------
How was performance during the six-month period, Gilman?
G. Gunn: Performance was good. For the six months that ended on April 30,
1998, the Evergreen Global Opportunities Fund Class A shares had a total
return of 14.41%. During the same period, Class B and C shares had returns
of 14.03% and 14.05% respectively, while Class Y shares had a return of
14.91%. These returns are unadjusted for any sales charges. These results
were achieved during a period when larger company stocks in both the
United States and Europe tended to outperform the smaller company stocks
in which the Fund invests. For example, the Morgan Stanley Capital
International World Index, which is heavily weighted in large company
stocks, had a return of 18.86% during the same period. Indexes reflecting
smaller company stocks did not do as well. The Russell 2000 Index, a
measure of the U.S. small cap stocks, returned 9.95%.
Portfolio Characteristics
-------------------------
Total Net Assets $308,375,741
-----------------------------------------------------------------------
Number of Holdings 207
-----------------------------------------------------------------------
Were there any significant asset allocation changes during the period?
G. Gunn: Yes. We increased the emphasis in Western Europe. At the close of
the period, on April 30, the Fund had about 50% of net assets invested in
Western Europe and 40% invested in the United States, with the remaining
10% divided among cash, Japan, Australia, New Zealand, Canada, Africa and
Latin America. These weightings reflected a substantial re-allocation. At
the start of the fiscal year in November 1997, 60% of Fund assets were
invested in the United States, and 25% in
European small company stocks.
- --------------------------------------------------------------------
Why did you make such a substantial change?
G. Gunn: We saw the primary opportunity in Western Europe, where cyclical
and structural changes are happening to favor equity markets. Cyclically
speaking, Continental Europe is recovering after a multi-year period of
slow growth. In addition, structural changes like increased focus on
shareholder value, corporate restructuring, share buybacks and increased
merger-and-acquisition activity all favor equities. The Fund was able to
buy small company stocks in Europe at substantially cheaper
price-to-earnings ratios than in the United States. It looked like we could
generate better investment performance through this strategy.
We have very little invested in Japan -- 2.6% -- or the emerging markets.
Within Europe, the largest areas of emphasis include the United Kingdom,
with 18.6% of assets; France, with 7.0% of assets; Switzerland, with 6.9%
and Germany with 4.3% of assets. While we have been emphasizing growth
companies, we also have added a number of value stocks, with lower
price-to-earnings multiples, to add balance to the overall
portfolio.
Top 10 Holdings
---------------
(as a percentage of net assets)
Boewe Systec AG 2.1%
-----------------------------------------------------------------------
Kuoni Reisen Holding AG 1.9%
-----------------------------------------------------------------------
Aegis Group Plc 1.7%
-----------------------------------------------------------------------
Ashtead Group Plc 1.6%
-----------------------------------------------------------------------
Capita Group Plc 1.5%
-----------------------------------------------------------------------
Parity Plc 1.4%
-----------------------------------------------------------------------
Sage Group Plc 1.2%
-----------------------------------------------------------------------
DCC Plc 1.2%
-----------------------------------------------------------------------
ATOS SA 1.1%
-----------------------------------------------------------------------
Lindt & Spruengli AG 1.1%
-----------------------------------------------------------------------
Portfolio composition is subject to change.
3
<PAGE>
EVERGREEN
Global Opportunities Fund
Portfolio Manager Interview
- --------------------------------------------------------------------------------
What were some of the significant investments in Europe during the period?
G. Gunn: Several business service companies based in the United Kingdom
were significant contributors to performance during the period. As the
period progressed, their prices appreciated and we took the opportunity to
realize some profits and reduce our weightings.
The largest foreign holding at the end of the fiscal period is Boewe
Systec, a German company which manufactures high-speed mail insertion
machinery. This equipment is used for inserting materials for commercial
mass mailings. The company recently established a U.S. distributor.
Another interesting investment is Hero, a Swiss company that specializes
in fruit preserves. A new management team recently has been put in place,
and distribution has been greatly expanded in the United States.
- --------------------------------------------------------------------------------
What is your outlook for international small company investing, Gilman?
G. Gunn: Our outlook for European small company stocks is still very
favorable. Our research has helped us find a number of smaller companies
that are attractively priced relative to large, blue chip stocks. We have
de-emphasized Japan, Latin America and the emerging markets, where we
expect continued volatility.
- --------------------------------------------------------------------------------
Gary, what was the investment environment like in the United States for
small company stocks during the period?
G. Craven: It was mixed. On the one hand we had several pre-conditions in
the economy which usually are favorable to small company investing. These
included low to declining interest rates, low and stable inflation, and a
great deal of technological advancement. The primary negative, however,
was investor sentiment. Investors continued to prefer the more established
larger companies with greater visibility. These companies have been
enjoying good earnings growth, and the cash flow has been directed to
them. As a result, we believe the valuations of small company stocks have
become increasingly attractive relative to large company stocks,
but there has not been a lot of interest.
Top 5 Industries
----------------
(as a percentage of net assets)
Information Services & Technology 10.2%
Finance & Insurance 7.8%
Food and Beverage Products 7.1%
Healthcare Products and Services 6.9%
Business Equipment & Services 6.3%
- --------------------------------------------------------------------------------
Within the United States portion of the portfolio, were there any
significant industry shifts during the six months?
G. Craven: We de-emphasized healthcare, while we increased our emphasis on
telecommunications. Health care went from a 16.5% allocation in the U.S.
portion of the portfolio to 6.9% because of the poor fundamental outlook
in biotechnology and medical devices. The major increase was in
telecommunications. Early in the period, we had major investments in
several competitive local exchange carriers. These investments did very
well. The Fund's former largest holding, for example, was ACC, which was
bought by Teleport, which in turn was bought by AT&T. We took profits in
this industry group and increased the emphasis on international long-
distance carriers, where we see significant opportunities. The smaller
companies in this industry group are benefiting from deregulation and the
use of newer technologies, such as switches and fiber optic cables, which
gives them a cost advantage. At the same time, the demand for their
services in both voice and data transmission is growing as the economy
becomes more global. Three significant investments were in Global
4
<PAGE>
EVERGREEN
Global Opportunities Fund
Portfolio Manager Interview
Telesystems Group, Star Telecommunications and Pacific Gateway Exchange.
During the six months, the per-share price of Global Telesystems rose from
$26 to $46, the price of Star Telesystems went from $11 to $27, and the
price of Pacific Gateway Exchange went from $38 to $58.
Did the Asian financial crisis have any
impact on strategy in the United States?
G. Craven: The Asian crisis had a significant impact on many companies. At
the beginning of the period, 17% of the U.S. portfolio was invested in
electronic equipment companies, principally semiconductor firms. We sold
the Fund's positions in them rather quickly in early October. After a
sharp correction, however, we believed the market may have over-reacted,
so we bought back a number of these stocks and were able to get a bounce
in their stock prices. We then reduced the position again. At the close of
the period, it was about 6.1% of the U.S. portfolio.
We built up positions in a number of electronics companies we thought had
greater long-term opportunities. These included Vitesse, which makes
advanced computer chips for satellites, and Sipex, a diversified company
which makes semiconductors used to manage power in devices such as
cellular phones, pagers and hand-held computers.
Other areas where we have increased our investments include companies
involved in set-top boxes for cable television systems, which will be
greatly expanding their products; and commercial services, including
companies that help businesses in their target marketing programs.
Geographical Allocation
-----------------------
(as a percentage of net assets)
Europe 51.3%
North America 43.3%
Japan 2.6%
Middle East/Africa 1.2%
Australia 0.9%
Latin/South America 0.7%
Portfolio composition is subject to change.
What is your outlook for the U.S. small
company stock market?
G. Craven: For investors with a long-term focus, we believe the
opportunities in the small company market are above average. Of all the
areas in the U.S. market, small company stocks are the most attractive
both in current valuations and in growth outlook. Small companies now are
selling at a 20-year-low relative to the overall stock market, as measured
by price-earnings ratios. We think this market is extremely attractive for
investors with a long-term outlook, but they should understand that it
also is very volatile, and prices can move either up or down very quickly
in the short term. We believe this market has the opportunity to deliver
very competitive returns over the next three-to-five years.
Funds that invest in stocks of small companies, also called small-cap stocks,
involve certain risks and, therefore, may not be appropriate for all investors.
Although they may offer the potential for greater long-term returns, they also
may experience greater price volatility due to their limited focus on a
particular industry, market, product, or service, or because they invest in
smaller, less established companies.
5
<PAGE>
EVERGREEN
International Growth Fund
Fund at a Glance as of April 30, 1998
The Fund has been helped by the emphasis on Europe and the de-emphasis of Latin
America and Asia.
Portfolio
Management
----------------------------------------
(Photo of Gilman Gunn)
Gilman Gunn
Tenure: January 1991
-------------------------------------------------------
CURRENT INVESTMENT STYLE
Morningstar's Style Box is based on a
portfolio date as of 3/31/98.
(Graphic) The Equity Style Box placement is based on a
fund's price-to-earnings and price-to-book
ratio relative to the S&P 500, as well as
the size of the companies in which it
invests, or median market capitalization.
Source: 1998 Morningstar, Inc.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS*
<TABLE>
<CAPTION>
Class A Class B Class C Class Y
<S> <C> <C> <C> <C>
Inception Date 1/20/98 12/1/75 3/6/98 3/9/98
..........................................................................
Average Annual Returns
..........................................................................
6 months with sales charge -- 17.50% -- --
..........................................................................
6 months w/o sales charge -- 22.30% -- --
..........................................................................
1 year with sales charge -- 21.55% -- --
..........................................................................
1 year w/o sales charge -- 26.37% -- --
..........................................................................
3 years -- 18.20% -- --
..........................................................................
5 years -- 13.41% -- --
..........................................................................
10 years -- 7.13% -- --
..........................................................................
Since Inception 15.32% 10.93% 7.77% 7.90%
..........................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
..........................................................................
6-month income dividends per
share -- $ 0.33 -- --
..........................................................................
6-month capital gain
distributions per share -- $ 1.54 -- --
..........................................................................
</TABLE>
*Adjusted for maximum sales charge
- --------------------------------------------------------------------------------
LONG TERM GROWTH
4/88 4/90 4/92 4/94 4/96 4/98
Class B Shares 10,000 8,866 9,254 12,336 14,126 19,909
MSCI EAFEI 10,000 9,700 9,326 13,312 15,750 18,667
CPI 10,000 11,008 11,913 12,587 13,337 13,877
Comparison of a $10,000 investment in Evergreen International Growth Fund,
Class B shares, versus a similar investment in the Morgan Stanley Capital
International Europe, Australia, and Far East Index (MSCI EAFEI) and the
Consumer Price Index (CPI).
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. The MSEAFEI is an unmanaged index and does not include
transaction costs associated with buying and selling securities nor any
management fees. The Consumer Price Index is a commonly used measure of
inflation and does not represent an investment return. It is not possible to
invest directly in an index.
6
<PAGE>
EVERGREEN
International Growth Fund
Portfolio Manager Interview
- --------------------------------------------------------------------------------
How did the Fund perform during the
six months?
Performance has been quite good. For the six months that ended on April
30, 1998, the Evergreen International Growth Fund's Class B shares had a
total return of 22.30%, unadjusted for any sales charges. By comparison,
the Morgan Stanley Capital International EAFE Index had a return of
15.44%. The MSCI EAFE Index measures the performance of stock markets in
Europe, Australia and the Far East.
Portfolio Characteristics
-------------------------
Total Net Assets $183,451,234
Number of Holdings 130
- --------------------------------------------------------------------------------
How would you describe the investment
environment during the six months?
In Europe, the environment has been quite positive, especially since
January, with the markets producing very strong performance. In contrast,
the Asian markets have been very volatile for the past six months. The
Latin American markets have experienced both a ripple effect from the
problems in Asia and concerns related to domestic issues in some major
Latin American markets.
Globally, we have had low interest rates, low inflation, an economic
recovery in Europe and a very positive market in the United States. There
has been no growth, however, in Asia. During the six months, the value of
the U.S. dollar has been stable against other currencies.
Geographical Allocation
-----------------------
(as a percentage of net assets)
Europe 75.4%
North America 14.9%
Asia 3.1%
Australia 2.7%
Far East/Africa 2.5%
Latin/South America 1.4%
Portfolio composition is subject to change.
- --------------------------------------------------------------------------------
What have been your principal strategies
during the six months?
Our primary strategy has been to be heavily overweighted in Europe, and
heavily underweighted in Asia, including Japan. We also have been heavily
underweighted in emerging markets all over the world. At the end of the
fiscal period on April 30, about 75% of the fund's assets were invested in
Europe, with the largest concentrations in the United Kingdom (18.3%),
France (13.9%), Switzerland (11.8%), Sweden (9.7%), Germany (7.4%) and the
Netherlands (7.6%). We also have taken advantage of good, relative value
in medium- and smaller-cap companies in Europe. About 20% of the Fund's
assets in Europe are these types of companies. Japan, which has been a
disappointing performer, had only 2.9% of Fund assets at the end of the
fiscal period.
In addition, we have emphasized industries which could be considered
defensive. At the end of the period, for example, the top five industry
weightings were food, healthcare, banks, finance and insurance, and
construction. We also have been relatively neutral on currency, with about
half the Fund's assets denominated or hedged in the U.S. dollar, and half
denominated in foreign currencies.
7
<PAGE>
EVERGREEN
International Growth Fund
Portfolio Manager Interview
Top 5 Industries
----------------
(as a percentage of net assets)
Food & Beverage Products 12.1%
Healthcare Products & Services 11.9%
Banks 8.2%
Finance & Insurance 7.7%
Building, Construction & Furnishings 6.1%
- --------------------------------------------------------------------------------
What were the main contributors to the
strong performance of the Fund?
The Fund has been helped by the emphasis on Europe and the de-emphasis of
Latin America and Asia, including Japan. Our European holdings have been
divided among two types of stocks. We have invested in both growth and
value opportunities, although the Fund was weighted more toward growth
companies during the six months. This has been helpful, because growth has
outperformed value during the period. We have not had a major emphasis on
technology stocks, although technology did well in Europe during the six
months.
Top 10 Holdings
---------------
(as a percentage of net assets)
Nestle SA 4.4%
Karstadt AG 2.2%
Astra AB 2.1%
Holderbank Financiere Glarus AG 1.8%
B.A.T. Industries Plc 1.7%
Telecom Italia SpA 1.7%
Rhone-Poulenc SA, Cl. A 1.7%
Assa Abloy 1.6%
Berliner Kraft & Licht AG 1.6%
Novartis AG 1.6%
Portfolio composition is subject to change.
- --------------------------------------------------------------------------------
What individual stocks have supported
performance during the six months?
Nestle, the international food company based in Switzerland, is the Fund's
largest holding and has been a very strong performer. In fact, the stock
almost doubled in value in the January to April 1998 period. This stock
has been helped both by the company's strong growth as well as the heavy
inflow of investment dollars to Europe. This money has tended to be
invested in the larger, well-known companies, such as Nestle.
A second very strong performer has been another Swiss company in a very
different industry: Holderbank, one of the world's largest cement
companies. It owns cement companies throughout the world, and has
benefited from consolidation in the industry, which has given these
companies more pricing power than most companies in other
commodity-oriented industries. Holderbank is a very well-managed
enterprise whose subsidiaries are either the largest or second largest
companies in their markets.
- --------------------------------------------------------------------------------
What are the principal areas of concern
in the international markets?
We already have had a significant rally in Europe, and the U.S. market
certainly is priced rather high. Anytime there has been a rally over an
extended period of time, it is wise to proceed with caution. At the same
time, the problems in Asia are by no means over. We believe the economies
are still contracting and do not expect a quick recovery in the Pacific
Basin. Two other causes of concern would be a significant increase in
interest rates in either the United States or Europe or a significant
decline in earnings. This could cause problems in the equity markets.
8
<PAGE>
EVERGREEN
International Growth Fund
Portfolio Manager Interview
- --------------------------------------------------------------------------------
What is your outlook?
We continue to have a favorable outlook about Europe, not only because the
economies there are rebounding, but also because of structural changes we
see occurring. European companies are focusing more on return on equity,
on cost cutting and on their core competencies. In addition, there is a
benign interest rate environment in Europe, encouraging investment in
stocks.
In an era when the European Economic Union and the European Monetary Union
are advancing, many companies are getting ready to compete on a broader,
European scale and this trend is creating some interesting investment
opportunities.
Until recently, the weakness of European currencies against the dollar has
helped European companies exporting to other countries. In the future,
however, companies can also count on stronger domestic consumption to
support demand for their products.
Finally, the level of merger-and-acquisition activity in Europe is high,
and this tends to support stock prices. Certainly the most notable recent
merger development has been the announcement that Daimler-Benz, a stock
included in the Fund's portfolio, will be merging with Chrysler.
9
<PAGE>
EVERGREEN
Latin America Fund
Fund at a Glance as of April 30, 1998
We took a more conservative and highly selective approach during the six-month
period ended April 30, 1998.
Portfolio
Management
----------------------------------------
(Photo of Francis Claro)
Francis Claro
Tenure: October 1996
(Photo of Antonio Docal)
Antonio Docal
Tenure: October 1996
-------------------------------------------------------
CURRENT INVESTMENT STYLE
Morningstar's Style Box is based on a
portfolio date as of 3/31/98.
The Equity Style Box placement is based on a
(Graphic) fund's price-to-earnings and price-to-book
ratio relative to the S&P 500, as well as
the size of the companies in which it
invests, or median market capitalization.
Source: 1998 Morningstar, Inc.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS*
<TABLE>
<CAPTION>
Class A Class B Class C Class Y
<S> <C> <C> <C> <C>
Inception Date 11/01/93 11/01/93 11/01/93 3/30/98
........................................................................
Average Annual Returns
........................................................................
6 months with sales charge 8.36% 8.88% 12.35% --
........................................................................
6 months w/o sales charge 13.76% 13.33% 13.24% --
........................................................................
1 year with sales charge 2.74% 2.90% 6.19% --
........................................................................
1 year w/o sales charge 7.86% 7.11% 7.03% --
........................................................................
3 years 17.13% 17.41% 18.13% --
........................................................................
Since Inception 10.43% 10.52% 10.83% 3.14%
........................................................................
Maximum Sales Charge 4.75% 5.00% 1.00%
Front End CDSC CDSC n/a
........................................................................
6-month capital gain
distributions per share $ 2.86 $ 2.86 $ 2.86 --
........................................................................
</TABLE>
*Adjusted for maximum sales charge.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
11/93 4/94 4/95 4/96 4/97 4/98
Class A Shares 9,525 9,525 9,259 10,910 14,485 15,622
MSCIWI 10,000 10,281 11,339 13,524 14,989 19,414
S&P 500 10,000 9,768 11,474 14,941 18,696 26,373
CPI 10,000 10,117 10,425 10,719 10,995 11,153
Comparison of a $10,000 investment in Evergreen Latin America Fund, Class A
shares, versus a similar investment in the Morgan Stanley Capital International
World Index (MSCIWI), the S & P 500 Index, and the Consumer Price Index (CPI).
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. The MSCIWI and the S & P 500 Index are unmanaged
indices and do not include transaction costs associated with buying and selling
securities nor any management fees. The Consumer Price Index is a commonly used
measure of inflation and does not represent an investment return. It is not
possible to invest directly in an index.
10
<PAGE>
EVERGREEN
Latin America Fund
Portfolio Manager Interview
- --------------------------------------------------------------------------------
How did the Fund perform during the
six-month period that ended April 30, 1998?
The Evergreen Latin America Fund's Class A shares produced a total return
of 13.76% for the period. This return is without deduction of any sales
charges. For the same period, the Lipper Latin American Fund Average rose
10.14% and the MSCI World Index produced a return of 18.86%. We believe
the Fund's performance is the result of good stock and country selection.
Portfolio Characteristics
-------------------------
Total Net Assets $91,637,237
Number of Holdings 57
- --------------------------------------------------------------------------------
What was the investment environment
like during the period?
It was a particularly volatile period. The economic crisis that occurred
in Asia in October had a contagious effect on the Latin American financial
markets. While the economic fundamentals of most Latin American countries
remained strong, there was a tendency on the part of investors to believe
that the risks associated with the Asian emerging markets would affect
emerging markets all over the world. Therefore, many investors sold their
Latin American stocks. We used these difficulties to work to our
advantage. As prices declined, we purchased stocks at attractive prices.
After the initial market sell-off, Latin American stock prices rebounded.
Brazil and Mexico recovered the most -- the two areas in which most of the
Fund's assets are invested. We are still seeing some terrific bargains.
- --------------------------------------------------------------------------------
What differentiates the emerging markets
of Latin America from those of Asia?
The economic underpinnings in the Latin American economies are much
stronger than those of many of Asia's emerging markets. For example, there
is no real estate bubble in Latin America, so real estate prices are not
artificially high. Banks in Latin America today have a more solid
financial base after consolidation, capital increases and the entrance of
foreign partners. Cronyism and corruption in the Latin countries is on the
decline, and governments are more willing to work with the International
Monetary Fund (IMF) and other multinational agencies.
Latin America also has more functioning democracies that have held free
and fair elections. At the time that the Asian economies collapsed, Asia
had an overcapacity problem. In contrast, the Latin American countries are
trying to satisfy pent-up demand for goods and services. For example, in
Latin America there is a great need for infrastructure development. There
is strong demand for sewerage, roads, utilities, and telecommunications
services. The Latin American economies experienced a crisis in 1994, when
the Mexican economy collapsed. Out of that crisis came some very sound
solutions for managing emerging market economies. The results have been
prepaid debt, high growth, and more investment in the region.
Geographical Allocation
-----------------------
(as a percentage of net assets)
Brazil 47.9%
Mexico 36.3%
United States 7.6%
Argentina 5.1%
Peru 1.6%
Columbia 1.1%
Venezuela 0.9%
Chile 0.4%
Portfolio composition is subject to change.
11
<PAGE>
EVERGREEN
Latin America Fund
Portfolio Manager Interview
- --------------------------------------------------------------------------------
How did you manage the Fund during
the six-months?
We took a more conservative and highly selective approach. We reduced the
number of companies in the portfolio, and we aggressively sought stocks
that have value and growth attributes together with catalysts that we
believe will be recognized by investors in the future. We had a slightly
higher cash position than normal, but that allowed us to be more agile in
investing in companies where we saw opportunities. At the end of the
period, about 8% of the portfolio's assets were in cash, which we expect
to be investing at remarkably low valuations.
- --------------------------------------------------------------------------------
Brazil and Mexico continued to account for most of the fund's assets. Why
were these countries attractive?
Let's start with Brazil which, at 48% of assets, accounted for the Fund's
largest country allocation at the end of the six-month period. The
Brazilian economy is benefiting from an austerity program that the
government put in place after the stock market downturn in October. The
program called for increased taxes and reductions in government spending.
When investing in Brazil, we focused on companies reaping the rewards of
restructuring, privatization and increased productivity. We found
attractive investments in a variety of economic sectors, the largest being
the Brazilian telecommunications sector. Two companies that contributed
strongly to performance were Cofap, an auto parts manufacturer that was
bought by Fiat; and Caemi, the third largest iron ore producer in the
world. Caemi exports virtually all its production and, according to some
top sector analysts, is trading at about twice its cash flow.
- --------------------------------------------------------------------------------
. . .and Mexico?
Mexican stocks composed 36% of the Fund's assets at the end of the period.
Mexico has solid macro-economic fundamentals. Its Gross Domestic Product
(GDP) growth was between 4.5% and 5% in 1997 and should continue at the
same rate in 1998. Inflation and interest rates continue to trend downward
year-over-year. The only weakness we've seen has been a deterioration in
the current account deficit. We believe that while the trend is a concern,
it can be financed by direct foreign investment and capital flows. One
area that we favored in Mexico was the cement industry. About 85% of
cement sales are by "do-it-yourselfers," individuals buying cement to
construct or add on to their homes. Cemex, the third largest cement
company in the world, and Apasco are two companies that are benefiting
from this do-it-yourself trend. We also found opportunity in selected
banks. Since the Mexican economic crisis in 1994, banks have become more
stable. They are beginning to increase lending rates for the first time in
three years, and their stocks are attractively priced. Two banks that we
believe have potential for long-term gains are Banacci and Bancomer.
Top 10 Holdings
---------------
(As a percentage of net assets)
Telecomunicacoes Brasileiras SA, ("Telebras") ADR 9.3%
Companhia Riograndense de Telecomunica 8.2%
Telecomunicaoes de Sao Paulo SA 8.2%
Grupo Finance Banamex Accival SA de CV, Ser.B 5.2%
Fomento Economico Mexicano SA, Ser. B 3.5%
Telecomunicacoes de Rio de Janiero SA 3.4%
Telefonos de Mexico SA, ADR 3.3%
Apasco SA de CV 3.2%
Petroleo Brasileiro SA ("Petrobras") 3.1%
Panamerican Beverages, Inc., Cl. A, ADR 3.0%
Portfolio composition is subject to change.
12
<PAGE>
EVERGREEN
Latin America Fund
Portfolio Manager Interview
What positions did you reduce in the
portfolio?
Weak demand for commodities in the emerging nations and in Japan resulted
in a decline in prices. We cut back investments in countries that were
sensitive to commodity price declines. We eliminated investments in
Venezuela because of lower oil prices. We also reduced the Fund's position
in Argentina, an oil exporter, and we sold investments in Chile, which was
affected by lower copper prices. Toward the end of the period, commodity
prices began to stabilize as a result of a pick-up in demand from the U.S.
and Europe.
Top 5 Industries
----------------
(As a percentage of net assets)
Telecommunication Services & Equipment 36.6%
Finance & Insurance 10.3%
Food & Beverage Products 9.6%
Building, Construction & Furnishings 7.6%
Oil/Energy 5.9%
What was your strategy in Peru?
About 2% of the Fund's assets were invested in Peru. This is a market
where we believe there is opportunity in the future. Because the epicenter
of the El Nino phenomenon is in Peru, no country has been more negatively
affected by it. With El Nino subsiding, we believe we will see Peru's
Gross Domestic Product (GDP) rebound during the second half of 1998 and
into 1999. We believe there is potential for strong consumption growth,
increased construction development, and more mining activity. We have been
increasing our exposure in this market.
What is your outlook
We are optimistic about the prospects for the Latin American markets and
the Fund. We believe the concerns that arose over Asia's economic problems
and their effect on Latin American stocks will decline, and investors will
once again focus on the positive economic fundamentals and attractive
valuations of the region. International companies are investing in record
numbers in Latin America with a long-term perspective. U.S. auto makers,
utility companies, banks, and other businesses are competing for Latin
American business.
Because of recent stock market declines, price/earnings ratios (PEs) on
Latin American stocks are at recent historic lows. We believe this
situation presents opportunity for the Fund, as the stocks of many
attractive companies are undervalued and we are able to find investments
that offer a combination of good value and strong potential for growth.
The diversification that Latin American investments offer, the solid
economic fundamentals of the region, and the high quality of many Latin
American companies make it an attractive area in which to invest.
The Evergreen Latin America Fund may also be subject to the additional
risk of non-diversified "Regional Fund" investing.
13
<PAGE>
EVERGREEN
Natural Resources Fund
Fund at a Glance as of April 30, 1998
We increased the natural resources portion of the Fund because the prices of
stocks on some better quality natural resources companies declined and were at
attractive levels.
Portfolio
Management
(Photo of John Madden)
John Madden
Tenure: October 1994
-------------------------------------------------------
CURRENT INVESTMENT STYLE
(Graphic) Morningstar's Style Box is based on a
portfolio date as of 3/31/98.
The Equity Style Box placement is based on a
fund's price-to-earnings and price-to-book
ratio relative to the S&P 500, as well as
the size of the companies in which it
invests, or median market capitalization.
Source: 1998 Morningstar, Inc.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS*
<TABLE>
<CAPTION>
Class A Class B Class C
<S> <C> <C> <C>
Inception Date 10/17/94 10/17/94 10/17/94
.................................................................
Average Annual Returns
.................................................................
6 months with sales charge (7.68%) (7.78%) (4.45%)
.................................................................
6 months w/o sales charge (3.08%) (3.52%) (3.60%)
.................................................................
1 year with sales charge (3.39%) (3.72%) (0.24%)
.................................................................
1 year w/o sales charge 1.43% 0.73% 0.64%
.................................................................
3 years 7.03% 7.08% 7.91%
.................................................................
Since Inception 4.34% 4.25% 4.98%
.................................................................
Maximum Sales Charge 4.75% 5.00% 1.00%
Front End CDSC CDSC
.................................................................
6-month income dividends per
share $ 0.13 $ 0.13 $ 0.13
.................................................................
6-month capital gain
distributions per share $ 1.25 $ 1.25 $ 1.25
.................................................................
</TABLE>
*Adjusted for maximum sales charge.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
10/94 4/95 4/96 4/97 4/98
Class A Shares 9,525 9,003 10,692 11,423 11,587
MSCIWI 10,000 10,482 12,503 13,857 17,948
S&P 500 10,000 11,047 14,384 18,000 25,391
CPI 10,000 10,160 10,446 10,716 10,870
Comparison of a $10,000 investment in Evergreen Natural Resources Fund, Class A
shares, versus a similar investment in the Morgan Stanley Capital International
World Index (MSCIWI), the S&P 500 Index, and the Consumer Price Index (CPI).
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. The MSCIWI and the S&P 500 Index are unmanaged indices
and do not include transaction costs associated with buying and selling
securities nor any management fees. The Consumer Price Index is a commonly used
measure of inflation and does not represent an investment return. It is not
possible to invest directly in an index.
14
<PAGE>
EVERGREEN
Natural Resources Fund
Portfolio Manager Interview
- --------------------------------------------------------------------------------
How did the Fund perform during the
six-month period that ended April 30, 1998?
The Fund's Class A shares declined 3.08%, unadjusted for sales charges,
substantially underperforming the Dow Jones Industrial Average and the
Standard & Poor's 500 Composite Index (S&P 500). The Fund outperformed the
Lipper Analytical Services Natural Resources Peer Group average return of
(3.81)%.
Portfolio Characteristics
-------------------------
Total Net Assets $15,055,934
Number of Holdings 37
- --------------------------------------------------------------------------------
What contributed to performance?
In general, natural resources stocks performed poorly. Virtually all
resources -- including energy and non-ferrous metals -- were laggards,
relative to the S&P 500. As mentioned, the average return for the Lipper
Natural Resources Peer Group over the six-month period declined 3.81%.
The disappointing performance of the emerging markets of Asia and
Latin American was also a factor. The Fund had significant exposure to
both resources and infrastructure development investments in these
markets.
- --------------------------------------------------------------------------------
What was the investment environment like for natural resources stocks
during the period?
The economic difficulties in Asia were the most important element for
natural resources investing. This was because Asian economic growth rates
had been higher than the growth rates of the major industrialized
countries for some time. The nature of Asia's growth is based on the
development of basic industries and infrastructure, which means that
petrochemicals, steel and base metals are important in the region's
development. As a result, Asia is a major factor in the global consumption
of these resources. The Asian economies use between 30%-40% of the world's
output of nickel, copper and aluminum.
As the financial crisis swept through Asia and growth expectations
declined, commodity prices suffered. Copper, for example, sold for more
than $1.18/lb a year ago. It dropped to $0.83/lb. at the end of April
1998. Nickel and aluminum prices have declined by 24% and 11%,
respectively. Oil, which once was virtually immune to downturns, fully
participated in this one. West Texas crude sold for more than $21 a barrel
last fall. At the end of April, it closed at $15.15 per barrel and had
been much lower during the period. All of this resulted in poor
performance of the stocks of commodity producers, especially those in the
more leveraged natural resources industries, such as oil service and
exploration companies. Ironically, lower commodity prices were positive
for other industries and economies. They resulted in lower inflation in
many areas, which boosted the performance of broad market averages that
made the relative performance of resources companies look worse.
Top 10 Holdings
---------------
(as a percentage of net assets)
Schlumberger Ltd. 7.6%
Diamond Offshore Drilling, Inc. 7.4%
Potash Corp. of Saskatchewan, Inc. 5.0%
Halliburton Co. 4.7%
Alcan Aluminum Ltd. 4.2%
Aluminum Co. of America 4.1%
Industrias Penoles SA de CV 3.6%
Canadian Occidental Petroleum Ltd. 3.4%
Rio Tinto Plc 3.0%
Santos Ltd. 2.9%
Portfolio composition is subject to change.
15
<PAGE>
EVERGREEN
Natural Resources Fund
Portfolio Manager Interview
- --------------------------------------------------------------------------------
What was your investment strategy
during the period?
Because the prices of stocks on some better quality natural resources
companies declined and were at attractive levels, we increased the natural
resources portion of the Fund from 78% to 87%. We decreased the allocation
to infrastructure, fertilizer and agriculture stocks from 22% to 13%. In
those areas, we sold stocks that had performed well.
- --------------------------------------------------------------------------------
How did energy stocks perform during
the period?
Performance of energy stocks varied widely. After producing solid returns
for a relatively long period, energy service companies stocks were among
the worst performers. These are among the most volatile stocks, and they
are the most vulnerable to market downturns.
Stocks of the major integrated oil companies peaked in the fall of 1997.
Their prices declined about 20% by early January and climbed back to their
previous highs by the end of April. These stocks rose about 5% over the
six-month period. Under ordinary circumstances this might be considered
good performance, but it seems paltry when the Dow Jones Industrial
Average rose more than 20% in the same time frame. We increased the Fund's
exposure to energy stocks from 35% to just under 45% of net assets.
Top 5 Industries
----------------
(as a percentage of net assets)
Metals & Mining 24.6%
Oil Field Services 24.5%
Oil/Energy 19.5%
Chemical & Agricultural Products 7.8%
Iron & Steel 5.0%
- --------------------------------------------------------------------------------
Did you make changes to the mining
portion of the portfolio?
We made two changes in this segment of the portfolio. First, we added to
the precious metals component, which at the end of the period composed
about 40% of portfolio assets. Precious metals stocks were attractive
because of an improving supply/demand balance and because we feel they may
benefit from the turmoil in Asia. Second, we largely eliminated Australian
mining companies. These companies are most vulnerable to Asia's economic
problems, because they ship the bulk of their output to Asia.
- --------------------------------------------------------------------------------
What were some of your success stories?
Several gold stocks performed well. These included Durban Deep in South
Africa, and Stillwater Mining, a platinum-palladium producer in Montana.
Several European investments were also success stories, such as Lafarge,
the French building materials company. The Fund's holdings in Brazil also
were solid performers, despite their volatility.
Geographical Allocation
-----------------------
(as a percentage of net assets)
United States 43.0%
Canada 21.4%
United Kingdom 9.0%
Brazil 7.6%
France 6.9%
Australia 5.5%
Mexico 3.6%
Peru 1.9%
South Africa 1.1%
Portfolio composition is subject to change.
16
<PAGE>
EVERGREEN
Natural Resources Fund
Portfolio Manager Interview
- --------------------------------------------------------------------------------
Did you make changes to the Fund's
country allocations?
We reduced the North American allocation from 67% to 63% of assets and the
Asia/Pacific portion of the portfolio from 11% to 6%. The change in Asia
was largely due to selling Australian mining companies. We raised
investments slightly in Europe, from 13% to 16% of assets. At the end of
the period, Latin America also accounted for 15% of assets, up from 9%.
Market appreciation was the primary driver behind the increase in our
Latin American allocation.
- --------------------------------------------------------------------------------
What is your outlook?
Because metals depend on strong growth in Asia, the pace of economic
recovery in that region is critical. We believe it is unlikely that Asia's
problems could get much worse and result in another round of devaluations
and drawn out recovery. Still, growth rate estimates are being revised
downward, and any growth sufficient to materially impact metals prices is
probably a year away. We have concentrated our metals holdings in
companies that are less susceptible to these problems, such as aluminum
stocks, special situations and broad-based companies. Our outlook for
energy is more positive, because we believe OPEC caused some of the
problems in the energy sector, and it has the ability to solve them. We
expect the current oil inventory bulge to be under control by fall of
1998. We continue to believe that a strong position in energy is
appropriate for the Fund. We will probably increase the Fund's European
investments, both in resources and in infrastructure development. In our
opinion, natural resources stocks discounted Asia's problems ahead of most
other investments, and we think they will react early to a resolution in
Asia. Many of these stocks are very attractively priced and represent good
value that should become apparent over the next twelve months.
17
<PAGE>
EVERGREEN
Precious Metals Fund
Fund at a Glance as of April 30, 1998
We maintained our strategy of seeking companies with large, low-cost reserves
and the ability to expand output.
Portfolio
Management
----------------------------------------
(Photo of John Madden)
John Madden
Tenure: October 1995
-------------------------------------------------------
CURRENT INVESTMENT STYLE
(Graphic) Morningstar's Style Box is based on a
portfolio date as of 3/31/98.
The Equity Style Box placement is based on a
fund's price-to-earnings and price-to-book
ratio relative to the S&P 500, as well as
the size of the companies in which it
invests, or median market capitalization.
Source: 1998 Morningstar, Inc.
- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS*
<TABLE>
<CAPTION>
Class A Class B Class C
<S> <C> <C> <C>
Inception Date 1/20/98 1/30/78 1/29/98
...............................................................
Average Annual Returns
...............................................................
6 months with sales charge -- ( 0.64%) --
...............................................................
6 months w/o sales charge -- 4.27% --
...............................................................
1 year with sales charge -- (19.72%) --
...............................................................
1 year w/o sales charge -- (15.74%) --
...............................................................
3 years -- ( 8.39%) --
...............................................................
5 years -- ( 1.48%) --
...............................................................
10 years -- 0.43% --
...............................................................
Since Inception 19.58% 8.50% 11.88%
...............................................................
Maximum Sales Charge 4.75% 5.00% 1.00%
Front End CDSC CDSC
...............................................................
6-month capital gain
distributions per share -- $ 0.81 --
...............................................................
</TABLE>
*Adjusted for maximum sales charge.
- --------------------------------------------------------------------------------
LONG TERM GROWTH
4/88 4/90 4/92 4/94 4/96 4/98
Class B Shares 10,000 9,174 8,389 14,025 16,171 10,438
S&P 500 10,000 13,589 18,227 20,969 32,074 56,616
CPI 10,000 11,008 11,913 12,587 13,337 13,877
Comparison of a $10,000 investment in Evergreen Precious Metals Fund, Class B
shares, versus a similar investment in the S & P 500 Index, and the Consumer
Price Index (CPI).
Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads and fees paid by the shareholders
investing in each class. The investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. The S & P 500 Index is an unmanaged index and does not
include transaction costs associated with buying and selling securities nor any
management fees. The Consumer Price Index is a commonly used measure of
inflation and does not represent an investment return. It is not possible to
invest directly in an index.
18
<PAGE>
EVERGREEN
Precious Metals Fund
Portfolio Manager Interview
- --------------------------------------------------------------------------------
How did the Fund perform?
The Fund produced strong performance relative to its peers. For the
six-month period that ended April 30, 1998, the Fund's Class B shares
generated a 4.27% total return, strongly outpacing the Lipper Gold Fund
average, which declined 3.03%. This return is unadjusted for sales charge.
The Fund also outperformed the XAU Index, an index composed primarily of
North American gold stocks, which rose 0.48%. Gold prices declined 1.54%.
Sector allocation was an important contributor to performance. During the
period only about one-third of the Fund was invested in non-North American
stocks, which significantly underperformed the Australian and South
African segments of the gold market.
Portfolio Characteristics
-------------------------
Total Net Assets 154,402,578
Number of Holdings 70
- --------------------------------------------------------------------------------
What was the investment environment
like during the period?
The investment environment for precious metals stocks was quite volatile.
Early in the period, gold prices continued to decline, as they had for
almost two years. In January, we believe they hit their lows, trading
briefly below $280 per ounce. Gold prices subsequently rose above $300 per
ounce, trading as high as $314 in late April and closed the period at
$306. This modest recovery was paralleled by a rally in gold stocks. For
example, the XAU Index rose from a multi-year low of 61.23 in January 1998
to over 90 in mid-April, while the South African and Australian stocks in
the Financial Times Indexes rose 56% and 71%, respectively, from the
lowest levels of December 1997. The rally in gold stalled during the last
few weeks of the period and prices weakened. The immediate causes of the
weakness are debatable, but we believe the dramatic strength of the U.S.
dollar was an important factor. On balance, we believe the investment
environment for gold has improved over the past six months, but the
conditions for generating broad investor interest in the metal have not
yet developed and will probably depend on how events unfold in Asia.
- --------------------------------------------------------------------------------
What caused the turnaround in gold
prices?
Before discussing the turnaround, we should explain what we believe were
the causes for the downturn in gold prices. We believe, the primary
reasons for the gradual price erosion of gold since early 1996 have been
commodity fund short-selling, outright sales by central banks, and
producer forward-selling, all done in an environment of relatively little
investor interest in gold or gold stocks.
The change of sentiment that prompted gold to rally relates to a growing
conviction that the European currency (EMU) will go forward, that there
will be a reasonable (though as yet undefined) percentage of gold backing
for the EMU, and that the major central banks in Germany and France will
not be sellers of gold for the foreseeable future. Other factors include
the sharp move in the price of silver and the announcement that investor
Warren Buffett had taken a major position in gold. Finally, we believe
that those with short positions in gold began to cover, perhaps thinking
that the long, extremely profitable run from over $400 per ounce down to
under $300 was approaching the end.
- --------------------------------------------------------------------------------
What effect did Asia's economic troubles
have on the prices of precious metals?
The turmoil in Asia seemed to have very little effect on precious metals
prices, at least in the short term; however, there may be a long-term
impact. A great deal of wealth has vanished in Asia, and the lesson that
ownership of gold would have preserved much of what is
19
<PAGE>
EVERGREEN
Precious Metals Fund
Portfolio Manager Interview
gone won't be lost on either individuals or central banks. Asia has always
been a major source of gold demand, and the problems in those economies
could have a negative impact on consumer purchasing ability in the region.
- --------------------------------------------------------------------------------
What was your investment strategy?
We maintained our strategy of seeking companies with large, low-cost
reserves and the ability to expand output. These types of companies have
served the Fund best over the years. We made two decisions regarding
short-term holdings. First, we stopped reducing holdings in South Africa
and Australia, because we felt that these segments of the market were
oversold. We added modestly to our investments in these two areas, and
this move was successful. Second, we maintained exposure to some smaller
companies that had been hit hard in the market but we believe have viable
projects, good potential growth prospects, and that should perform well if
gold prices rise. We think there is room in the Fund for other assets,
smaller gold stocks, even non-gold investments, such as diamond and
platinum, but the larger, well-managed firms have been the mainstay of the
Fund.
Geographical Allocation
-----------------------
(as a percentage of net assets)
Canada 47.5%
South Africa 24.7%
United States 16.2%
Australia 8.5%
Papua New Guinea 1.2%
Peru 1.0%
Mexico 0.9%
Portfolio composition is subject to change.
- --------------------------------------------------------------------------------
Did you change the Fund's geographic
allocations?
The geographic allocations changed very little over the period. About 65%
of Fund assets were invested in North and South America, 25% in Africa,
and 10% in Australia and other countries. The biggest change in the Fund
came with the merger of Evergreen Precious Metals Fund with Blanchard
Precious Metals Fund in February. The Blanchard fund was more concentrated
in North America than the Evergreen Precious Metals Fund, so we made some
adjustments. Many of the companies in the Blanchard fund, however, were
already in the Evergreen Precious Metals Fund. For example, two Canadian
gold mining companies -- Franco-Nevada Mining and Euro-Nevada Mining --
were in both funds and have served shareholders well and remain attractive
investments.
Industry Allocation
-------------------
(As a percentage of assets)
Gold Mining 64.3%
Metals & Mining 41.3%
- --------------------------------------------------------------------------------
Where did you find the most opportunity?
Two stocks were particularly solid performers -- Stillwater Mining and
Durban Deep. Stillwater Mining is a Montana palladium and platinum miner,
the largest source of these metals outside Russia and South Africa.
Stillwater recently completed an expansion program and expects to show
substantial profits this year. The company should benefit from the very
positive supply/demand outlook for the "platinum group metals." Durban
Deep is a South African producer undergoing significant restructuring in
its financial properties, management, and mining techniques. The company is
a high-cost miner and leveraged to gold prices; however, with a market
capitalization of only $10 per ounce of reserves, its risk-reward
characteristics are appealing.
20
<PAGE>
EVERGREEN
Precious Metals Fund
Portfolio Manager Interview
Top 10 Holdings
---------------
(As a percentage of assets)
Franco Nevada Mining Ltd. 9.1%
Euro Nevada Mining Ltd. 7.0%
Newmont Mining Corp. 6.5%
Barrick Gold Corp. 5.2%
Ashanti Goldfields Ltd., GDR 4.0%
Homestake Mining Co. 3.9%
Stillwater Mining Co. 3.8%
Pioneer Group, Inc. 3.4%
TVX Gold, Inc. 3.3%
Kinross Gold Corp. 3.0%
Portfolio composition is subject to change.
- --------------------------------------------------------------------------------
Any disappointments?
One disappointment would be SouthernEra Resources, Inc., a diamond company
in South Africa highlighted in the last shareholder report. SouthernEra
made a promising new discovery that was amenable to surface and
shallow-depth mining. It was slated to begin production this year.
Unfortunately, the company is involved in a property dispute and the
company's stock has suffered.
- --------------------------------------------------------------------------------
What is your outlook?
We believe the worst is behind us for gold. Gold has to compete with a
number of alternatives for the investor's dollar. To date, the metal is
lagging other financial assets, such as stocks and the U.S. dollar, but
there are clouds on the horizon that may cause gold to regain some of its
appeal. Asia still has a number of political and economic problems.
Valuations in the U.S. and European stock markets are very high. Tensions
are rising in the Indian subcontinent, and Russia is wavering on the edge
of currency devaluation. On the positive side, satisfactory progress
toward the EMU should eliminate some of the most nettlesome worries about
central bank sales. Any or all of these factors contain the seeds of
greater investor interest in gold and in gold stocks. As individuals in
Asia have discovered, there are times when there is nothing better to own,
and current circumstances in the U.S. and abroad have the potential to
make the next twelve months one of those times.
21
<PAGE>
EVERGREEN
Global Opportunities Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended One-Month
April 30,1998 Period Ended
(Unaudited)# October 31, 1997*
<S> <C> <C>
CLASS A SHARES
Net asset value beginning of
period $ 23.53 $ 24.90
----------- -----------
.......................................................................
Income (loss) from investment
operations
.......................................................................
Net investment income (loss) (0.11) 0.02
.......................................................................
Net realized and unrealized gain
(loss) on investments and foreign
currency related transactions 3.27 ( 1.39)
----------- -----------
.......................................................................
Total from investment operations 3.16 (1.37)
----------- -----------
.......................................................................
Less distributions
.......................................................................
From net realized gain on
investments and foreign currency
related transactions (1.53) 0
----------- -----------
.......................................................................
Total distributions (1.53) 0
----------- -----------
.......................................................................
Net asset value end of period $ 25.16 $ 23.53
----------- -----------
.......................................................................
Total return + 14.41 % (5.50%)
.......................................................................
Ratios/supplemental data
Ratios to average net assets
Total expenses 1.88%++ 1.87%
.......................................................................
Total expenses, excluding
indirectly paid expenses 1.87%++ 1.85%++
.......................................................................
Net investment loss (1.00%)++ (1.40%)++
.......................................................................
Portfolio turnover rate 62% 7%
.......................................................................
Average commissions rate paid
per share $ 0.0116 $ 0.0019
.......................................................................
Net assets end of period
(thousands) $ 81,970 $ 98,031
.......................................................................
</TABLE>
<TABLE>
<CAPTION>
Year Ended September 30,
1997# 1996 1995 1994
<S> <C> <C> <C> <C>
CLASS A SHARES
Net asset value beginning of
period $ 24.56 $ 23.43 $ 19.42 $ 18.02
---------- ---------- ---------- ----------
.............................................................................................
Income (loss) from investment
operations
.............................................................................................
Net investment income (loss) (0.17) (0.06) (0.16) (0.04)
.............................................................................................
Net realized and unrealized gain
(loss) on investments and foreign
currency related transactions 1.76 1.19 4.17 1.60
---------- ---------- ---------- ----------
.............................................................................................
Total from investment operations 1.59 1.13 4.01 1.56
---------- ---------- ---------- ----------
.............................................................................................
Less distributions
.............................................................................................
From net realized gain on
investments and foreign currency
related transactions (1.25) 0 0 (0.16)
---------- ---------- ---------- ----------
.............................................................................................
Total distributions (1.25) 0 0 (0.16)
---------- ---------- ---------- ----------
.............................................................................................
Net asset value end of period $ 24.90 $ 24.56 $ 23.43 $ 19.42
---------- ---------- ---------- ----------
.............................................................................................
Total return + 6.95% 4.82% 20.65% 8.74%
.............................................................................................
Ratios/supplemental data
Ratios to average net assets
Total expenses 1.67% 1.62% 1.83% 2.01%
.............................................................................................
Total expenses, excluding
indirectly paid expenses 1.66% 1.60% 1.81% N/A
.............................................................................................
Net investment loss (0.69%) (0.53%) (0.83%) (0.86%)
.............................................................................................
Portfolio turnover rate 72% 67% 35% 32%
.............................................................................................
Average commissions rate paid
per share $ 0.0066 $ 0.0079 N/A N/A
.............................................................................................
Net assets end of period
(thousands) $ 113,477 $ 250,427 $ 94,679 $ 71,122
.............................................................................................
</TABLE>
<TABLE>
<CAPTION>
Year Ended September 30,
1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
Net asset value beginning of period $ 11.69 $ 12.89 $ 9.89 $ 11.17 $ 9.77
--------- --------- -------- --------- --------
....................................................................................................................
Income (loss) from investment operations
....................................................................................................................
Net investment income (loss) (0.14) (0.08) 0.17 0.19 0.09
....................................................................................................................
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions 6.47 0.23 3.06 (1.27) 1.66
--------- --------- -------- --------- --------
....................................................................................................................
Total from investment operations 6.33 0.15 3.23 (1.08) 1.75
--------- --------- -------- --------- --------
....................................................................................................................
Less distributions
....................................................................................................................
From net investment income 0 0 (0.23) (0.12) (0.09)
....................................................................................................................
From net realized gain on investments and foreign
currency related transactions 0 (1.35) 0 (0.08) (0.26)
--------- --------- --------- --------- ---------
....................................................................................................................
Total distributions 0 (1.35) (0.23) (0.20) (0.35)
--------- --------- --------- --------- ---------
....................................................................................................................
Net asset value end of period $ 18.02 $ 11.69 $ 12.89 $ 9.89 $ 11.17
--------- --------- --------- --------- ---------
....................................................................................................................
Total return + 54.15% 1.81% 32.71% (9.65%) 16.94%
....................................................................................................................
Ratios/supplemental data
Ratios to average net assets
Total expenses 2.84% 2.50% 2.03% 2.00% 2.00%
....................................................................................................................
Total expenses, excluding fee waivers and
expense reimbursements N/A N/A 3.67% 7.77% 13.06%
....................................................................................................................
Net investment income (1.72%) (0.69%) 1.49% 1.80% 0.86%
....................................................................................................................
Portfolio turnover rate 64% 75% 134% 51% 13%
....................................................................................................................
Net assets end of period (thousands) $ 29,942 $ 10,859 $ 2,159 $ 1,519 $ 1,378
....................................................................................................................
</TABLE>
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
# Net Investment income is based on average shares outstanding during the
period.
* The Fund changed its fiscal year end from September 30 to October 31,
effective October 31, 1997.
See Combined Notes to Financial Statements.
22
<PAGE>
EVERGREEN
Global Opportunities Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended One-Month
April 30, 1998 Period Ended
(Unaudited)# October 31, 1997**
<S> <C> <C>
CLASS B SHARES
Net asset value beginning of
period $ 22.69 $ 24.03
----------- ------------
....................................................................
Income (loss) from
investment operations
....................................................................
Net investment loss (0.19) (0.06)
....................................................................
Net realized and unrealized gain
(loss) on investments and
foreign currency related
transactions 3.15 (1.28)
----------- ------------
....................................................................
Total from investment
operations 2.96 (1.34)
----------- ------------
....................................................................
Less distributions
....................................................................
From net realized gain on
investments and foreign
currency related transactions (1.53) 0
----------- ------------
....................................................................
Total distributions (1.53) 0
----------- ------------
....................................................................
Net asset value end of period $ 24.12 $ 22.69
----------- ------------
....................................................................
Total return + 14.03% (5.58%)
....................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 2.63%++ 2.62%++
....................................................................
Total expenses, excluding
indirectly paid expenses 2.62%++ 2.61%++
....................................................................
Net investment loss (1.75%)++ (2.15%)++
....................................................................
Portfolio turnover rate 62% 7%
....................................................................
Average commissions rate
paid per share $ 0.0116 $ 0.0019
....................................................................
Net assets end of period
(thousands) $ 189,677 $ 216,471
....................................................................
<CAPTION>
Year Ended September 30,
1997# 1996 1995 1994 1993*
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value beginning of
period $ 23.92 $ 23.00 $ 19.20 $ 17.95 $ 14.04
---------- --------- -------- -------- ----------
..........................................................................................................
Income (loss) from
investment operations
..........................................................................................................
Net investment loss (0.32) (0.21) (0.25) (0.15) (0.04)
..........................................................................................................
Net realized and unrealized gain
(loss) on investments and
foreign currency related
transactions 1.68 1.13 4.05 1.56 3.95
---------- --------- -------- -------- ----------
..........................................................................................................
Total from investment
operations 1.36 0.92 3.80 1.41 3.91
---------- --------- -------- -------- ----------
..........................................................................................................
Less distributions
..........................................................................................................
From net realized gain on
investments and foreign
currency related transactions (1.25) 0 0 ( 0.16) 0
---------- --------- -------- -------- ----------
..........................................................................................................
Total distributions (1.25) 0 0 ( 0.16) 0
---------- --------- -------- -------- ----------
..........................................................................................................
Net asset value end of period $ 24.03 $ 23.92 $ 23.00 $ 19.20 $ 17.95
---------- --------- -------- -------- ----------
..........................................................................................................
Total return + 6.14% 4.00% 19.79% 7.93% 27.85%
..........................................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 2.46% 2.40% 2.58% 2.83% 3.35%++
..........................................................................................................
Total expenses, excluding
indirectly paid expenses 2.44% 2.38% 2.56% N/A N/A
..........................................................................................................
Net investment loss (1.45%) (1.37%) (1.59%) (1.61%) (1.86%)++
..........................................................................................................
Portfolio turnover rate 72% 67% 35% 32% 64%
..........................................................................................................
Average commissions rate
paid per share $ 0.0066 $ 0.0079 N/A N/A N/A
..........................................................................................................
Net assets end of period
(thousands) $ 238,936 $ 385,839 $238,320 $131,695 $ 15,534
..........................................................................................................
</TABLE>
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
# Net investment income is based on average shares outstanding during the
period.
* For the period from February 1, 1993 (commencement of class operations) to
September 30, 1993.
** The Fund changed its fiscal year end from September 30 to October 31,
effective October 31, 1997.
See Combined Notes to Financial Statements.
23
<PAGE>
EVERGREEN
Global Opportunities Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended One-Month
April 30, 1998 Period Ended
(Unaudited)# October 31, 1997**
<S> <C> <C>
CLASS C SHARES
Net asset value beginning of
period $ 22.73 $ 24.07
----------- -----------
........................................................................
Income (loss) from investment
operations
........................................................................
Net investment loss (0.19) (0.07)
........................................................................
Net realized and unrealized gain
(loss) on investments and foreign
currency related transactions 3.16 (1.27)
----------- -----------
........................................................................
Total from investment operations 2.97 (1.34)
----------- -----------
........................................................................
Less distributions
........................................................................
From net realized gain on
investments and foreign currency
related transactions (1.53) 0
----------- -----------
........................................................................
Total distributions (1.53) 0
----------- -----------
........................................................................
Net asset value end of period $ 24.17 $ 22.73
----------- -----------
........................................................................
Total Return + 14.05% (5.57%)
........................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 2.63%++ 2.62%++
........................................................................
Total expenses, excluding
indirectly paid expenses 2.62%++ 2.61%++
........................................................................
Net investment loss (1.75%)++ (2.15%)++
........................................................................
Portfolio turnover rate 62% 7%
........................................................................
Average commissions rate paid
per share $ 0.0116 $ 0.0019
........................................................................
Net assets end of period
(thousands) $ 36,707 $ 43,869
........................................................................
<CAPTION>
Year Ended September 30,
1997# 1996 1995 1994 1993*
<S> <C> <C> <C> <C> <C>
CLASS C SHARES
Net asset value beginning of
period $ 23.97 $ 23.04 $ 19.26 $ 17.99 $ 14.04
--------- --------- --------- --------- -----------
............................................................................................................
Income (loss) from investment
operations
............................................................................................................
Net investment loss (0.33) (0.24) (0.27) (0.15) (0.04)
............................................................................................................
Net realized and unrealized gain
(loss) on investments and foreign
currency related transactions 1.68 1.17 4.05 1.58 3.99
--------- --------- --------- --------- -----------
............................................................................................................
Total from investment operations 1.35 0.93 3.78 1.43 3.95
--------- --------- --------- --------- -----------
............................................................................................................
Less distributions
............................................................................................................
From net realized gain on
investments and foreign currency
related transactions (1.25) 0 0 (0.16) 0
--------- --------- --------- --------- -----------
............................................................................................................
Total distributions (1.25) 0 0 (0.16) 0
--------- --------- --------- --------- -----------
............................................................................................................
Net asset value end of period $ 24.07 $ 23.97 $ 23.04 $ 19.26 $ 17.99
--------- --------- --------- --------- -----------
............................................................................................................
Total Return + 6.08% 4.04% 19.63% 8.02% 28.13%
............................................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 2.45% 2.40% 2.58% 2.85% 3.04%++
............................................................................................................
Total expenses, excluding
indirectly paid expenses 2.43% 2.38% 2.56% N/A N/A
............................................................................................................
Net investment loss (1.48%) (1.38%) (1.59%) (1.62%) (1.55%)++
............................................................................................................
Portfolio turnover rate 72% 67% 35% 32% 64%
............................................................................................................
Average commissions rate paid
per share $ 0.0066 $ 0.0079 N/A N/A N/A
............................................................................................................
Net assets end of period
(thousands) $ 49,524 $ 124,549 $ 86,339 $ 50,535 $ 6,217
............................................................................................................
</TABLE>
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
# Net investment income is based on average shares outstanding during the
period.
* For the period from February 1, 1993 (commencement of class operations) to
September 30, 1993.
** The Fund changed its fiscal year end from September 30 to October 31,
effective October 31, 1997.
See Combined Notes to Financial Statements.
24
<PAGE>
EVERGREEN
Global Opportunities Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1998
(Unaudited)#
<S> <C>
CLASS Y SHARES
Net asset value beginning of period $ 23.90
----------
.............................................................................................
Income (loss) from investment operations
.............................................................................................
Net investment loss (0.04)
.............................................................................................
Net realized and unrealized gain (loss) on investments and foreign currency
related transactions 3.38
----------
.............................................................................................
Total from investment operations 3.34
----------
.............................................................................................
Less distributions
.............................................................................................
From net realized gain on investments (1.53)
----------
.............................................................................................
Total distributions (1.53)
----------
.............................................................................................
Net asset value end of period $ 25.71
----------
.............................................................................................
Total return 14.91%
.............................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 1.58%+
.............................................................................................
Total expenses, excluding indirectly paid expenses 1.57%+
.............................................................................................
Net investment loss (0.60%)+
.............................................................................................
Portfolio turnover rate 62%
.............................................................................................
Average commissions rate paid per share $ 0.0116
.............................................................................................
Net assets end of period (thousands) $ 22
.............................................................................................
<CAPTION>
January 13, 1997
One-Month (commencement
Period Ended of class operations) to
October 31, 1997** September 30, 1997
<S> <C> <C>
CLASS Y SHARES
Net asset value beginning of period $ 25.24 $ 23.05
---------- ----------
........................................................................................................................
Income (loss) from investment operations
........................................................................................................................
Net investment loss 0 (0.28)
........................................................................................................................
Net realized and unrealized gain (loss) on investments and foreign currency
related transactions (1.34) 2.47
----------- -----------
........................................................................................................................
Total from investment operations (1.34) 2.19
----------- -----------
........................................................................................................................
Less distributions
........................................................................................................................
From net realized gain on investments 0 0
----------- -----------
........................................................................................................................
Total distributions 0 0
----------- -----------
........................................................................................................................
Net asset value end of period $ 23.90 $ 25.24
----------- -----------
........................................................................................................................
Total return (5.31%) 9.50%
........................................................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 1.62%+ 1.42%+
........................................................................................................................
Total expenses, excluding indirectly paid expenses 1.62%+ 1.42%+
........................................................................................................................
Net investment loss (1.62%)+ (1.22%)+
........................................................................................................................
Portfolio turnover rate 7% 72%
........................................................................................................................
Average commissions rate paid per share $ 0.0019 $ 0.0066
........................................................................................................................
Net assets end of period (thousands) $ 0 $ 0
........................................................................................................................
</TABLE>
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
* The Fund changed its fiscal year end from September 30 to October 31,
effective October 31, 1997.
See Combined Notes to Financial Statements.
25
<PAGE>
EVERGREEN
International Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Period Ended
April 30, 1998*#
(Unaudited)
<S> <C>
CLASS A SHARES
Net asset value beginning of period $ 6.88
---------
..........................................................................................................
Income from investment operations
..........................................................................................................
Net investment income 0.01
..........................................................................................................
Net realized and unrealized gain on investments and foreign currency related transactions 1.44
---------
..........................................................................................................
Total from investment operations 1.45
---------
..........................................................................................................
Net asset value end of period $ 8.33
---------
..........................................................................................................
Total return + 21.08%
..........................................................................................................
Ratios/supplemental data
Ratios to average net assets
Total expenses 1.72%++
..........................................................................................................
Total expenses, excluding indirectly paid expenses 1.71%++
..........................................................................................................
Net investment income 0.56%++
..........................................................................................................
Portfolio turnover rate 49%
..........................................................................................................
Average commission rate paid $ 0.0013
..........................................................................................................
Net assets end of period (thousands) $ 105,134
..........................................................................................................
</TABLE>
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
# Net investment income is based on average shares outstanding during the
period.
* For the period from January 20, 1998 (commencement of class operations) to
April 30, 1998.
See Combined Notes to Financial Statements
26
<PAGE>
EVERGREEN
International Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1998# Year Ended October 31,
(Unaudited) 1997 1996 1995 1994*#
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value beginning of period $ 8.65 $ 7.69 $ 7.11 $ 7.77 $ 7.67
---------- -------- -------- ------- ----------
......................................................................................................................
Income (loss) from investment
operations
......................................................................................................................
Net investment income (loss) (0.02) (0.05) (0.02) 0.07 0
......................................................................................................................
Net realized and unrealized gain on
investments and foreign currency related
transactions 1.55 1.27 0.75 0.05 0.10
---------- -------- -------- ------- ----------
......................................................................................................................
Total from investment operations 1.53 1.22 0.73 0.12 0.10
---------- -------- -------- ------- ----------
......................................................................................................................
Less distributions
......................................................................................................................
From net investment income (0.33) 0 (0.09) (0.04) 0
......................................................................................................................
In excess of net investment income 0 (0.10) (0.01) 0 0
......................................................................................................................
From net realized gain on investments and
foreign currency related transations (1.54) (0.16) (0.05) (0.74) 0
---------- -------- -------- -------- ----------
......................................................................................................................
Total distributions (1.87) (0.26) (0.15) (0.78) 0
---------- -------- -------- -------- ----------
......................................................................................................................
Net asset value end of period $ 8.31 $ 8.65 $ 7.69 $ 7.11 $ 7.77
---------- -------- -------- -------- ----------
......................................................................................................................
Total return + 22.3% 15.69% 10.47% 2.19% 1.30%
......................................................................................................................
Ratios/supplemental data
Ratios to average net assets
Total expenses 2.38%++ 2.39% 2.43% 2.57% 2.52%++
......................................................................................................................
Total expenses, excluding indirectly paid
expenses 2.37%++ 2.38% 2.42% 2.56% N/A
......................................................................................................................
Net investment income (loss) (0.56%)++ (0.49%) (0.21%) 0.88% (0.20%)++
......................................................................................................................
Portfolio turnover rate 49% 101% 52% 76% 2%
......................................................................................................................
Average commission rate paid $ 0.0013 $ 0.0010 $ 0.0011 N/A N/A
......................................................................................................................
Net assets end of period (thousands) $ 52,819 $ 151,806 $ 147,911 $128,674 $ 157,929
......................................................................................................................
<CAPTION>
Year Ended
September 30,
1994#
<S> <C>
CLASS B SHARES
Net asset value beginning of period $ 7.08
-------
........................................................
Income (loss) from investment
operations
........................................................
Net investment income (loss) 0
........................................................
Net realized and unrealized gain on
investments and foreign currency related
transactions 0.62
--------
........................................................
Total from investment operations 0.62
--------
........................................................
Less distributions
........................................................
From net investment income (0.02)
........................................................
In excess of net investment income (0.01)
........................................................
From net realized gain on investments and
foreign currency related transations 0
--------
........................................................
Total distributions (0.03)
--------
........................................................
Net asset value end of period $ 7.67
--------
........................................................
Total return + 8.75%
........................................................
Ratios/supplemental data
Ratios to average net assets
Total expenses 2.54%
........................................................
Total expenses, excluding indirectly paid
expenses N/A
........................................................
Net investment income (loss) 0.01%
........................................................
Portfolio turnover rate 121%
........................................................
Average commission rate paid N/A
........................................................
Net assets end of period (thousands) $154,529
........................................................
</TABLE>
<TABLE>
<CAPTION>
Year Ended September 30,
1993# 1992# 1991 1990 1989
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value beginning of period $ 6.01 $ 5.91 $ 5.35 $ 7.51 $ 6.66
-------- -------- -------- -------- --------
.................................................................................................................
Income (loss) from investment operations
.................................................................................................................
Net investment income (loss) (0.03) (0.01) (0.01) (0.07) (0.14)
.................................................................................................................
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions 1.14 0.34 0.83 (1.74) 1.06
-------- -------- -------- -------- --------
.................................................................................................................
Total from investment operations 1.11 0.33 0.82 (1.81) 0.92
-------- -------- -------- -------- --------
.................................................................................................................
Less distributions
.................................................................................................................
From net investment income 0 0 0 0 (0.07)
.................................................................................................................
In excess of net investment income (0.04) (0.23) (0.03) 0 0
.................................................................................................................
From net realized gain on investments and foreign
currency related transactions 0 0 (0.23) (0.35) 0
-------- -------- -------- -------- --------
.................................................................................................................
Total distributions (0.04) (0.23) (0.26) (0.35) (0.07)
-------- -------- -------- -------- --------
.................................................................................................................
Net asset value end of period $ 7.08 $ 6.01 $ 5.91 $ 5.35 $ 7.51
-------- -------- -------- -------- --------
.................................................................................................................
Total return + 18.59% 5.78% 15.59% (25.12%) 13.55%
.................................................................................................................
Ratios/supplemental data+
Ratios to average net assets
Total expenses + 2.94% 3.41% 3.14% 2.92% 2.65%
.................................................................................................................
Net investment income (loss) (0.46%) (0.09%) (0.07%) (0.51%) (0.79%)
.................................................................................................................
Portfolio turnover rate 68% 74% 85% 42% 42%
.................................................................................................................
Net assets end of period (thousands) $111,752 $ 64,135 $ 72,923 $ 73,768 $121,047
.................................................................................................................
</TABLE>
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
# Net investment income is based on average shares outstanding during the
period.
* The Fund changed its fiscal year end from September 30 to October 31,
effective October 31, 1994.
See Combined Notes to Financial Statements.
27
<PAGE>
EVERGREEN
International Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1998*#
(Unaudited)
<S> <C>
CLASS C SHARES
Net asset value beginning of period $ 7.64
----------
..........................................................................................................
Income from investment operations
..........................................................................................................
Net investment income 0.01
..........................................................................................................
Net realized and unrealized gain on investments and foreign currency related transactions 0.66
----------
..........................................................................................................
Total from investment operations 0.67
----------
..........................................................................................................
Net asset value end of period $ 8.31
----------
..........................................................................................................
Total return + 8.77%
..........................................................................................................
Ratios/supplemental data
Ratios to average net assets
Total expenses 2.54%++
..........................................................................................................
Total expenses, excluding indirectly paid expenses 2.53%++
..........................................................................................................
Net investment income 1.29%++
..........................................................................................................
Portfolio turnover rate 49%
..........................................................................................................
Average commission rate paid $ 0.0013
..........................................................................................................
Net assets end of period (thousands) $ 234
..........................................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1998**#
(Unaudited)
<S> <C>
CLASS Y SHARES
Net asset value beginning of period $ 7.72
----------
...........................................................................................................
Income from investment operations
...........................................................................................................
Net investment income 0.02
...........................................................................................................
Net realized and unrealized gain on investments and foreign currency related transactions 0.59
----------
...........................................................................................................
Total from investment operations 0.61
----------
...........................................................................................................
Net asset value end of period $ 8.33
----------
...........................................................................................................
Total return 7.90%
...........................................................................................................
Ratios/Supplemental data
Ratios to average net assets
Total expenses 1.52%++
...........................................................................................................
Total expenses, excluding indirectly paid expenses 1.51%++
...........................................................................................................
Net investment income 2.86%++
...........................................................................................................
Portfolio turnover rate 49%
...........................................................................................................
Average commission rate paid $ 0.0013
...........................................................................................................
Net assets end of period (thousands) $ 25,265
...........................................................................................................
</TABLE>
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
# Net investment income is based on average shares outstanding during the
period.
* For the period from March 6, 1998 (commencement of class operations) to
April 30, 1998.
** For the period from March 9, 1998 (commencement of class operations) to
April 30, 1998.
See Combined Notes to Financial Statements.
28
<PAGE>
EVERGREEN
Latin America Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1998#
Year Ended October 31,
------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(Unaudited) 1997 1996 1995 1994
CLASS A SHARES
Net asset value beginning of period $ 13.15 $ 11.13 $ 9.86 $ 10.55 $ 10.00
------------ ----------- ---------- -------- ---------
..............................................................................................................................
Income (loss) from investment operations
..............................................................................................................................
Net investment income 0.09 0.01 0.39 0.44 0.21
..............................................................................................................................
Net realized and unrealized gain (loss) on investments
and foreign currency related transactions 1.43 2.11 1.24 (0.81) 0.50
------------ ----------- ---------- -------- ---------
..............................................................................................................................
Total from investment income 1.52 2.12 1.63 (0.37) 0.71
------------ ----------- ---------- -------- ---------
..............................................................................................................................
Less distributions
..............................................................................................................................
From net investment income 0 (0.10) (0.31) (0.30) (0.10)
..............................................................................................................................
In excess of net investment income 0 0 (0.05) 0 (0.01)
..............................................................................................................................
From net realized gain on investments
and foreign currency related transactions (2.86) 0 0 (0.02) (0.05)
------------ ----------- ---------- -------- ---------
..............................................................................................................................
Total distributions (2.86) (0.10) (0.36) (0.32) (0.16)
------------ ----------- ---------- -------- ---------
..............................................................................................................................
Net asset value end of period $ 11.81 $ 13.15 $ 11.13 $ 9.86 $ 10.55
------------ ----------- ---------- -------- ---------
..............................................................................................................................
Total Return + 13.76% 19.18% 16.74% (3.35%) 7.21%
..............................................................................................................................
Ratios & supplemental data
Ratios to average net assets:
Total expenses 1.82%++ 1.69% 1.83% 1.86% 1.79%
..............................................................................................................................
Total expenses, excluding indirectly paid expenses 1.81%++ 1.68% 1.81% 1.84% N/A
..............................................................................................................................
Net investment income 1.68%++ 0.20% 3.05% 4.02% 2.45%
..............................................................................................................................
Portfolio turnover rate 69% 105% 112% 57% 104%
..............................................................................................................................
Average commission rate per share $ 0.0003 $ 0.0002 $ 0.0005 N/A N/A
..............................................................................................................................
Net assets end of period (thousands) $ 13,070 $ 13,621 $ 11,021 $ 14,333 $ 23,880
..............................................................................................................................
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1998#
Year Ended October 31,
------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(Unaudited) 1997 1996 1995 1994
CLASS B SHARES
Net asset value beginning of period $ 12.91 $ 10.98 $ 9.76 $ 10.49 $ 10.00
------------ --------- ---------- -------- --------
..............................................................................................................................
Income (loss) from investment operations
..............................................................................................................................
Net investment income (loss) 0.05 (0.07) 0.23 0.32 0.14
..............................................................................................................................
Net realized and unrealized gain (loss) on investments
and foreign currency related transactions 1.39 2.08 1.30 (0.75) 0.50
------------ --------- ---------- -------- --------
..............................................................................................................................
Total from investment income 1.44 2.01 1.53 (0.43) 0.64
------------ --------- ---------- -------- --------
..............................................................................................................................
Less distributions
From net investment income 0 (0.02) (0.27) (0.28) (0.09)
..............................................................................................................................
In excess of net investment income 0 (0.06) (0.04) 0 (0.01)
..............................................................................................................................
From realized gain on investments
and foreign currency related transactions (2.86) 0 0 (0.02) (0.05)
------------ --------- ---------- -------- --------
..............................................................................................................................
Total distributions (2.86) (0.08) (0.31) (0.30) (0.15)
------------ --------- ---------- -------- --------
..............................................................................................................................
Net asset value end of period $ 11.49 $ 12.91 $ 10.98 $ 9.76 $ 10.49
------------ --------- ---------- -------- --------
..............................................................................................................................
Total Return + 13.33% 18.40% 15.82% (4.00%) 6.48%
..............................................................................................................................
Ratios & supplemental data
Ratios to average net assets:
Total expenses 2.57%++ 2.50% 2.59% 2.61% 2.54%
..............................................................................................................................
Total expenses, excluding indirectly paid expenses 2.56%++ 2.49% 2.58% 2.59% N/A
..............................................................................................................................
Net investment income (loss) 0.95%++ (0.51%) 2.30% 3.27% 1.70%
..............................................................................................................................
Portfolio turnover rate 69% 105% 112% 57% 104%
..............................................................................................................................
Average commission rate per share $ 0.0003 $ 0.0002 $ 0.0005 N/A N/A
..............................................................................................................................
Net assets end of period (thousands) $ 69,359 $ 75,271 $ 79,026 $ 97,165 $148,769
..............................................................................................................................
</TABLE>
+ Initial sales charge or contingent sales charge is not reflected.
++ Annualized.
# Net investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
29
<PAGE>
EVERGREEN
Latin America Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1998#
Year Ended October 31,
---------------------------------------------------------
<S> <C> <C> <C> <C> <C>
(Unaudited) 1997 1996 1995 1994
CLASS C SHARES
Net asset value beginning of period $ 12.92 $ 10.99 $ 9.77 $ 10.50 $ 10.00
------------ --------- ---------- --------- ---------
Income (loss) from investment operations
Net investment income (loss) 0.05 (0.07) 0.23 0.32 0.14
Net realized and unrealized gain (loss) on investments
and foreign currency related transactions 1.38 2.08 1.30 (0.75) 0.51
------------ --------- ---------- --------- ---------
Total from investment operations 1.43 2.01 1.53 (0.43) 0.65
------------ --------- ---------- --------- ---------
Less distributions
Net investment income 0 0 (0.27) (0.28) (0.09)
In excess of net investment income 0 (0.08) (0.04) 0 (0.01)
From net realized gain on investments
and foreign currency related transactions (2.86) 0 0 (0.02) (0.05)
------------ --------- ---------- --------- ---------
Total distributions (2.86) (0.08) (0.31) (0.30) (0.15)
------------ --------- ---------- --------- ---------
Net asset value end of period $ 11.49 $ 12.92 $ 10.99 $ 9.77 $ 10.50
------------ --------- ---------- --------- ---------
Total Return + 13.24% 18.38% 15.80% (4.00%) 6.58%
Ratios & supplemental data
Ratios to average net assets:
Total expenses 2.57%++ 2.47% 2.59% 2.61% 2.54%
Total expenses, excluding indirectly paid expenses 2.56%++ 2.46% 2.58% 2.59% N/A
Net investment income (loss) 0.85%++ (0.52%) 2.26% 3.27% 1.74%
Portfolio turnover rate 69% 105% 112% 57% 104%
Average commission rate per share $ 0.0003 $ 0.0002 $ 0.0005 N/A N/A
Net assets end of period (thousands) $ 9,207 $ 10,961 $ 8,791 $ 11,242 $ 17,740
</TABLE>
<TABLE>
<CAPTION>
Period Ended
April 30, 1998#*
(Unaudited)
<S> <C>
CLASS Y SHARES
Net asset value beginning of period $ 11.46
----------
.......................................................................
Income (loss) from investment operations
.......................................................................
Net investment income (loss) 0.11
.......................................................................
Net realized and unrealized gain (loss) on investments
and foreign currency related transactions 0.25
----------
.......................................................................
Total from investment operations 0.36
----------
.......................................................................
Net asset value end of period $ 11.82
----------
.......................................................................
Total Return 3.14%
.......................................................................
Ratios & supplemental data
Ratios to average net assets:
Total expenses 1.28%++
.......................................................................
Total expenses, excluding indirectly paid expenses 1.28%++
.......................................................................
Net investment income (loss) 7.78%++
.......................................................................
Portfolio turnover rate 69%
.......................................................................
Average commission rate per share $ 0.0003
.......................................................................
Net assets end of period (thousands) $ 1
.......................................................................
</TABLE>
+ Initial sales charge or contingent sales charge is not reflected.
++ Annualized.
* For the period from March 30, 1998 (commencement of class operations) to
April 30, 1998.
# Net investment income is based on average shares outstanding during the
period.
See Combined Notes to Financial Statements.
30
<PAGE>
EVERGREEN
Natural Resources Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Seven-Month
April 30, 1998# Period Ended
(Unaudited) October 31, 1997**
<S> <C> <C>
CLASS A SHARES
Net asset value beginning of period $ 12.58 $ 12.11
----------- ---------
................................................................................
Income (loss) from investment operations
................................................................................
Net investment income (loss) (0.02) 0.03
................................................................................
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions (0.38) 0.44
----------- ---------
................................................................................
Total from investment operations (0.40) 0.47
----------- ---------
................................................................................
Less distributions
................................................................................
From net investment income (0.13)## 0
................................................................................
From net realized gain on investments and
foreign currency related transactions (1.25) 0
----------- ----------
................................................................................
Total distributions (1.38) 0
----------- ----------
................................................................................
Net asset value end of period $ 10.80 $ 12.58
----------- ----------
................................................................................
Total return+ (3.08%) 3.88%
................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 2.94%++ 2.01%++
................................................................................
Total expenses, excluding indirectly paid
expenses 2.93%++ 2.01%++
................................................................................
Net investment income (loss) (0.38%)++ 0.02%++
................................................................................
Portfolio turnover rate 18% 13%
................................................................................
Average commission rate paid $ 0.0255 $ 0.0057
................................................................................
Net assets end of period (thousands) $ 3,880 $ 3,890
................................................................................
<CAPTION>
Year Ended March 31,
1997 1996 1995*
<S> <C> <C> <C>
CLASS A SHARES
Net asset value beginning of period $ 10.74 $ 9.02 $ 10.00
---------- --------- -----------
...........................................................................................
Income (loss) from investment operations
...........................................................................................
Net investment income (loss) (0.04) (0.04) 0(a)
...........................................................................................
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)
---------- --------- -----------
...........................................................................................
Less distributions
...........................................................................................
From net investment income 0 0 0
...........................................................................................
From net realized gain on investments and
foreign currency related transactions 0 0 0
---------- --------- -----------
...........................................................................................
Total distributions 0 0 0
---------- --------- -----------
...........................................................................................
Net asset value end of period $ 12.11 $ 10.74 $ 9.02
---------- --------- -----------
...........................................................................................
Total return+ 12.76% 19.07% (9.80%)
..........................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 2.40% 2.38% 2.77%++
..........................................................................................
Total expenses, excluding indirectly paid
expenses 2.39% 2.37% N/A
..........................................................................................
Net investment income (loss) (0.45%) (0.41%) (0.07%)++
...........................................................................................
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>
<TABLE>
<CAPTION>
Six Months Ended Seven-Month
April 30, 1998# Period Ended
(Unaudited) October 31, 1997**
<S> <C> <C>
CLASS B SHARES
Net asset value beginning of period $ 12.31 $ 11.89
----------- -----------
................................................................................
Income (loss) from investment operations
................................................................................
Net investment loss (0.08) (0.07)
................................................................................
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions (0.36) 0.49
----------- -----------
................................................................................
Total from investment operations (0.44) 0.42
----------- -----------
................................................................................
Less distributions
................................................................................
From net investment income (0.02)## 0
................................................................................
In excess of net investment income (0.11) 0
................................................................................
From net realized gain on investments and
foreign currency related transactions (1.25) 0
----------- -----------
................................................................................
Total distributions (1.38) 0
----------- -----------
................................................................................
Net asset value end of period $ 10.49 $ 12.31
----------- -----------
................................................................................
Total return+ (3.52%) 3.53%
...............................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 3.80%++ 2.79%++
...............................................................................
Total expenses, excluding indirectly paid
expenses 3.79%++ 2.78%++
...............................................................................
Net investment loss (1.58%)++ (0.77%)++
................................................................................
Portfolio turnover rate 18% 13%
................................................................................
Average commission rate paid $ 0.0255 $ 0.0057
................................................................................
Net assets end of period (thousands) $ 9,845 $ 15,333
................................................................................
<CAPTION>
Year Ended March 31,
1997 1996 1995*
<S> <C> <C> <C>
CLASS B SHARES
Net asset value beginning of period $ 10.62 $ 8.99 $ 10.00
---------- --------- -----------
...........................................................................................
Income (loss) 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)
---------- --------- -----------
...........................................................................................
Less distributions
...........................................................................................
From net investment income 0 0 0
...........................................................................................
In excess of net investment income 0 0 0
...........................................................................................
From net realized gain on investments and
foreign currency related transactions 0 0 0
---------- --------- -----------
...........................................................................................
Total distributions 0 0 0
---------- --------- -----------
...........................................................................................
Net asset value end of period $ 11.89 $ 10.62 $ 8.99
---------- --------- -----------
...........................................................................................
Total return+ 11.96% 18.13% (10.10%)
...........................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 3.16% 3.13% 3.55%++
...........................................................................................
Total expenses, excluding indirectly paid
expenses 3.15% 3.12% N/A
...........................................................................................
Net investment loss (1.22%) (1.16%) (0.80%)++
...........................................................................................
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>
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
# Net investment income is based on average shares outstanding during the
period.
## A portion of the distributions from net investment income were paid from
realized foreign currency gains earned. Such gains are reported for
financial statement purposes as realized gain on investments and foreign
currency related transactions and are distributed as ordinary income for tax
purposes.
* For the period from October 7, 1994 (commencement of class operations) to
March 31, 1995.
** The Fund changed its fiscal year end from March 31, to October 31,
effective October 31, 1997.
(a)Less than one cent per share.
See Combined Notes to Financial Statements.
31
<PAGE>
EVERGREEN
Natural Resources Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Seven-Month
April 30, 1998# Period Ended
(Unaudited) October 31, 1997**
<S> <C> <C>
CLASS C SHARES
Net asset value beginning of period $ 12.31 $ 11.89
----------- -----------
................................................................................
Income (loss) from investment operations
................................................................................
Net investment loss (0.08) (0.13)
................................................................................
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions (0.37) 0.55
----------- -----------
................................................................................
Total from investment operations (0.45) 0.42
----------- -----------
................................................................................
Less distributions
................................................................................
From net investment income (0.01)## 0
................................................................................
In excess of net investment income (0.12) 0
................................................................................
From net realized gain on investments and
foreign currency related transactions (1.25) 0
----------- -----------
................................................................................
Total distributions (1.38) 0
----------- -----------
................................................................................
Net asset value end of period $ 10.48 $ 12.31
----------- -----------
................................................................................
Total return + (3.60%) 3.53%
................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 3.83%++ 2.79%++
.............................................................................
Total expenses, excluding indirectly paid
expenses 3.82%++ 2.79%++
.............................................................................
Net investment loss (1.65%)++ (0.80%)++
................................................................................
Portfolio turnover rate 18% 13%
................................................................................
Average commission rate paid $ 0.0255 $ 0.0057
................................................................................
Net assets, end of period (thousands) $ 1,331 $ 2,716
................................................................................
<CAPTION>
Year Ended March 31,
1997 1996 1995*
<S> <C> <C> <C>
CLASS C SHARES
Net asset value beginning of period $ 10.62 $ 8.99 $ 10.00
---------- --------- -----------
...........................................................................................
Income (loss) 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)
---------- --------- -----------
...........................................................................................
Less distributions
...........................................................................................
From net investment income 0 0 0
...........................................................................................
In excess of net investment income 0 0 0
...........................................................................................
From net realized gain on investments and
foreign currency related transactions 0 0 0
---------- --------- -----------
...........................................................................................
Total distributions 0 0 0
---------- --------- -----------
...........................................................................................
Net asset value end of period $ 11.89 $ 10.62 $ 8.99
---------- --------- -----------
...........................................................................................
Total return + 11.96% 18.13% (10.10%)
..........................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 3.13% 3.13% 3.51%++
..........................................................................................
Total expenses, excluding indirectly paid
expenses 3.12% 3.12% N/A
..........................................................................................
Net investment loss (1.27%) (1.16%) (0.93%)++
...........................................................................................
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>
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
# Net investment income is based on average shares outstanding during the
period.
## A portion of the distributions from net investment income were paid from
realized foreign currency gains earned. Such gains are reported for financial
statement purposes as realized gain on investments and foreign currency
related transactions and are distributed as ordinary income for tax purposes.
* For the period from October 7, 1994 (commencement of class operations) to
March 31, 1995.
** The Fund changed its fiscal year end from March 31 to October 31, effective
October 31, 1997.
See Combined Notes to Financial Statements.
32
<PAGE>
EVERGREEN
Precious Metals Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Period Ended
April 30, 1998#*
(Unaudited)
<S> <C>
CLASS A SHARES
Net asset value beginning of period $ 12.38
----------
..........................................................................................................
Income from investment operations
..........................................................................................................
Net investment income 0.04
..........................................................................................................
Net realized and unrealized gain on investments and foreign currency related transactions 3.21
----------
..........................................................................................................
Total from investment operations 3.25
----------
..........................................................................................................
Net asset value end of period $ 15.63
----------
..........................................................................................................
Total return + 25.54%
..........................................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 1.90%++
..........................................................................................................
Total expenses, excluding indirectly paid expenses 1.90%++
..........................................................................................................
Net investment income 0.93%++
..........................................................................................................
Portfolio turnover rate 13%
..........................................................................................................
Average commission rate paid $ 0.0147
..........................................................................................................
Net assets end of period (thousands) $ 118,143
..........................................................................................................
</TABLE>
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
# Net investment income is based on average shares outstanding during the
period.
* For the period from January 20, 1998 (commencement of class operations) to
April 30, 1998.
See Combined Notes to Financial Statements.
33
<PAGE>
EVERGREEN
Precious Metals Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months Ended Eighth-Month Ended
April 30, 1998# Period Ended
(Unaudited) October 31, 1997#*
<S> <C> <C>
CLASS B SHARES
Net asset value beginning of period $ 15.87 $ 23.94
----------- ----------
.................................................................................
Income (loss) from investment operations
.................................................................................
Net investment loss (0.10) (0.14)
.................................................................................
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions 0.64 (7.93)
----------- -----------
.................................................................................
Total from investment operations 0.54 (8.07)
----------- -----------
.................................................................................
Less distributions
.................................................................................
From net investment income 0 0
.................................................................................
From realized gain on investments and
foreign currency related transactions (0.81) 0
----------- -----------
.................................................................................
Total distributions (0.81) 0
----------- -----------
.................................................................................
Net asset value end of period $ 15.60 $ 15.87
----------- -----------
.................................................................................
Total return + 4.27% (33.71%)
.................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 2.67%++ 2.48%++
.................................................................................
Total expenses, excluding indirectly paid
expenses 2.67%++ 2.48%++
.................................................................................
Net investment loss (1.53%)++ (1.04%)++
.................................................................................
Portfolio turnover rate 13% 19%
.................................................................................
Average commission rate paid $ 0.0147 $ 0.0267
.................................................................................
Net assets end of period (thousands) $ 35,473 $ 111,173
.................................................................................
<CAPTION>
Year Ended
------------------------------------------------------
Feb. 28, Feb. 29, Feb. 28, Feb. 28,
1997 1996 1995 1994
<S> <C> <C> <C> <C>
CLASS B SHARES
Net asset value beginning of period $ 26.35 $ 19.30 $ 25.09 $ 14.38
--------- ---------- -------- --------
................................................................................................
Income (loss) from investment operations
................................................................................................
Net investment loss (0.26) (0.25) (0.13) (0.17)
................................................................................................
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions (1.16) 7.30 (5.54) 10.88
--------- ---------- -------- --------
................................................................................................
Total from investment operations (1.42) 7.05 (5.67) 10.71
--------- ---------- -------- --------
................................................................................................
Less distributions
................................................................................................
From net investment income 0 0 (0.12) 0
................................................................................................
From realized gain on investments and
foreign currency related transactions (0.99) 0 0 0
--------- ---------- -------- --------
................................................................................................
Total distributions (0.99) 0 (0.12) 0
--------- ---------- -------- --------
................................................................................................
Net asset value end of period $ 23.94 $ 26.35 $ 19.30 $ 25.09
--------- ---------- -------- --------
................................................................................................
Total return + (5.16%) 36.53% (22.70%) 74.48%
................................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 2.33% 2.28% 2.33% 2.34%
................................................................................................
Total expenses, excluding indirectly paid
expenses 2.31% 2.26% N/A N/A
................................................................................................
Net investment loss (1.08%) (1.08%) (0.54%) (0.75%)
................................................................................................
Portfolio turnover rate 41% 39% 75% 73%
................................................................................................
Average commission rate paid $ 0.0164 N/A N/A N/A
................................................................................................
Net assets end of period (thousands) $ 190,108 $ 217,270 $171,193 $200,489
................................................................................................
</TABLE>
<TABLE>
<CAPTION>
Year Ended
-------------------------------------------------------------------------
Feb. 28, Feb. 29, Feb. 28, Feb. 28, Feb. 28,
1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
Net asset value beginning of period $ 15.37 $ 14.22 $ 19.15 $ 16.82 $ 15.50
-------- --------- --------- --------- --------
...............................................................................................................................
Income (loss) from investment operations
...............................................................................................................................
Net investment income (loss) (0.12) (0.02) 0 0.06 0.05
...............................................................................................................................
Net realized and unrealized gain (loss) on investments
and foreign currency related transactions (0.76) 1.30 (4.61) 2.27 1.59
-------- --------- --------- --------- --------
...............................................................................................................................
Total from investment operations (0.88) 1.28 (4.61) 2.33 1.64
-------- --------- --------- --------- --------
...............................................................................................................................
Less distributions
...............................................................................................................................
From net investment income 0 0 (0.06) 0 (0.12)
...............................................................................................................................
In excess of net investment income (0.11) ( 0.13) (0.26) 0 0
...............................................................................................................................
From realized gain on investments and
foreign currency related transactions 0 0 0 0 (0.20)
-------- --------- --------- ---------- --------
...............................................................................................................................
Total distributions (0.11) (0.13) (0.32) 0 (0.32)
-------- --------- --------- ---------- --------
...............................................................................................................................
Net asset value end of period $ 14.38 $ 15.37 $ 14.22 $ 19.15 $ 16.82
-------- --------- --------- ---------- --------
...............................................................................................................................
Total return + (5.74%) 9.07% (24.37%) 13.85% 10.64%
...............................................................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 2.83% 2.70% 2.76% 2.20% 1.68%
...............................................................................................................................
Net investment income (loss) (0.86%) (0.14%) (0.02%) 0.32% 0.28%
...............................................................................................................................
Portfolio turnover rate 58% 53% 68% 95% 82%
...............................................................................................................................
Net assets end of period (thousands) $114,364 $ 131,356 $ 150,200 $ 195,837 $222,079
...............................................................................................................................
</TABLE>
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
# Net investment income is based on average shares outstanding during the
period.
* The Fund changed its fiscal year end from February 28, to October 31,
effective October 31, 1997.
See Combined Notes to Financial Statements.
34
<PAGE>
EVERGREEN
Precious Metals Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Period Ended
April 30, 1998#*
(Unaudited)
<S> <C>
CLASS C SHARES
Net asset value beginning of period $ 13.82
-----------
..........................................................................................................
Income (loss) from investment operations
..........................................................................................................
Net investment loss (0.04)
..........................................................................................................
Net realized and unrealized gain on investments and foreign currency related transactions 1.82
-----------
..........................................................................................................
Total from investment operations 1.78
-----------
..........................................................................................................
Net asset value end of period $ 15.60
-----------
..........................................................................................................
Total return + 12.88%
..........................................................................................................
Ratios/supplemental data
Ratios to average net assets:
Total expenses 2.81%++
..........................................................................................................
Total expenses excluding indirectly paid expenses 2.81%++
..........................................................................................................
Net investment loss (1.15%)++
..........................................................................................................
Portfolio turnover rate 13%
..........................................................................................................
Average commission rate paid $ 0.0147
..........................................................................................................
Net assets end of period (thousands) $ 786
..........................................................................................................
</TABLE>
+ Initial sales charge or contingent deferred sales charge is not reflected.
++ Annualized.
# Net investment income is based on average shares outstanding during the
period.
* For the period from January 29, 1998 (commencement of class operations) to
April 30, 1998.
See Combined Notes to Financial Statements.
35
<PAGE>
EVERGREEN
Global Opportunities Fund
Schedule of Investments
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- 96.0%
ARGENTINA -- 0.2%
Oil/Energy -- 0.2%
65,300 Transportadora de Gas del Sur
SA, ADR ("TGS") .................. $ 755,031
==========
AUSTRALIA -- 0.9%
Business Equipment &
Services -- 0.1%
61,278 Computershare Ltd. ............... 205,838
----------
Finance & Insurance -- 0.4%
104,638 QBE Insurance Group Ltd. ......... 480,481
436,122 Tyndall Australia Ltd. ........... 753,821
----------
1,234,302
----------
Healthcare Products &
Services -- 0.4%
48,943 Cochlear Ltd. .................... 215,481
784,553 Sonic Healthcare Ltd. ............ 1,049,036
----------
1,264,517
----------
Total Australia .................. 2,704,657
==========
AUSTRIA -- 0.5%
Food & Beverage Products -- 0.5%
40,470 Julius Meinl International ....... 1,394,246
==========
CANADA -- 0.9%
Finance & Insurance -- 0.8%
23,300 Dundee Bancorp, Inc., Cl. A ...... 465,202
127,200 Mackenzie Financial Corp. ........ 1,912,514
----------
2,377,716
----------
Oil/Energy -- 0.1%
21,400 * Seven Seas Petroleum, Inc. ....... 454,750
----------
Total Canada ..................... 2,832,466
==========
DENMARK -- 0.4%
Banks -- 0.4%
10,400 Jyske Bank AS .................... 1,208,215
==========
FINLAND -- 0.2%
Paper & Packaging -- 0.2%
31,350 Valmet OYJ ....................... 519,756
==========
FRANCE -- 7.0%
Advertising & Related Services --
0.3%
11,500 Dauphin O.T.A. ................... 1,063,717
----------
Automotive Equipment &
Manufacturing -- 0.3%
11,911 Sylea ............................ 1,079,936
----------
Building, Construction &
Furnishings -- 0.4%
8,983 Societe Technip .................. 1,141,742
----------
Business Equipment &
Services -- 1.1%
21,150 * ATOS SA .......................... 3,536,142
----------
Electrical Equipment &
Services -- 0.9%
6,642 Le Carbone Lorraine .............. 2,723,761
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Engineering -- 0.3%
20,474 Assystem SA ...................... $ 946,893
----------
Finance & Insurance -- 0.6%
8,430 Scor ............................. 520,021
2,116 * Societe Eurafrance SA ............ 1,189,832
----------
1,709,853
----------
Food & Beverage Products -- 0.3%
14,700 Pernod Ricard SA ................. 1,014,889
----------
Healthcare Products &
Services -- 0.1%
1,000 Ile de France Pharmaceutique ..... 214,440
----------
Industrial Specialty Products &
Services -- 0.1%
2,873 Manutan .......................... 224,640
----------
Machinery--Diversified -- 1.5%
8,475 GFI Industries SA ................ 2,114,873
15,460 Norbert Dentressangle SA ......... 2,199,019
3,200 Sidel ............................ 244,884
----------
4,558,776
----------
Manufacturing--Distributing -- 1.0%
74,820 Grandoptical Photoservice ........ 3,012,218
----------
Textile & Apparel -- 0.1%
2,400 Deveaux SA ....................... 347,363
----------
Transportation -- 0.0%)
1,710 Faiveley SA ...................... 73,964
----------
Total France ..................... 21,648,334
==========
GERMANY -- 4.3%
Automotive Equipment &
Manufacturing -- 1.1%
186,450 SAI Automotive AG ................ 3,324,733
----------
Building, Construction &
Furnishings -- 0.1%
830 Grohe (Friedrich) AG ............. 261,319
----------
Household Products &
Services -- 0.3%
69,400 Gerresheimer Glas AG ............. 1,003,555
----------
Information Services &
Technology -- 2.0%
135,410 Boewe Systec AG .................. 6,338,324
----------
Metal Products & Services -- 0.7%
14,250 KM Europa Metal AG ............... 2,024,881
----------
Publishing, Broadcasting &
Entertainment -- 0.1%
280 Springer (Axel) Verlag AG ........ 248,865
----------
Retailing & Wholesale -- 0.0% (a)
2,550 Moebel Walther AG ................ 106,573
----------
Total Germany .................... 13,308,250
==========
IRELAND -- 1.2%
Diversified Companies -- 1.1%
380,247 DCC Plc .......................... 3,469,641
----------
</TABLE>
36
<PAGE>
EVERGREEN
Global Opportunities Fund
Schedule of Investments (continued)
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Finance & Insurance -- 0.1%
26,000 Irish Life Plc ................... $ 241,257
----------
Total Ireland .................... 3,710,898
==========
ISRAEL -- 0.1%
Pharmaceuticals -- 0.1%
7,000 Teva Pharmaceutical Industries
Ltd., ADR ........................ 298,375
==========
ITALY -- 2.4%
Automotive Equipment &
Manufacturing -- 0.4%
94,250 Brembo SpA ....................... 1,274,332
----------
Finance & Insurance -- 0.7%
71,700 Mediolanum SpA ................... 2,149,361
----------
Industrial Specialty Products &
Services -- 0.8%
435,000 Interpump Group SpA .............. 2,385,765
44,000 Manuli Rubber .................... 238,462
----------
2,624,227
----------
Telecommunication Services &
Equipment -- 0.5%
22,100 Ericsson SpA ..................... 1,397,352
----------
Total Italy ...................... 7,445,272
==========
JAPAN -- 2.6%
Advertising & Related
Services -- 0.2%
29,300 Asatsu, Inc. ..................... 526,931
----------
Building, Construction &
Furnishings -- 0.3%
126,000 Nishimatsu Construction .......... 542,693
89,000 Okumura Corp. .................... 329,530
----------
872,223
----------
Consumer Products &
Services -- 0.3%
34,000 Hitachi Maxell ................... 647,423
6,000 Matsumotokiyoshi ................. 207,194
----------
854,617
----------
Electrical Equipment &
Services -- 0.5%
10,800 Aiwa Co. Ltd. .................... 322,351
11,600 Mabuchi Motor Co. ................ 671,422
23,000 Matsushita Kotobuk ............... 637,827
----------
1,631,600
----------
Finance & Insurance -- 0.8%
160,000 Dowa Fire & Marine Insurance Co. . 513,828
9,000 Orix Corp. ....................... 622,261
3,900 Shohkoh Fund & Co. Ltd. .......... 1,240,668
----------
2,376,757
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Food & Beverage Products -- 0.2%
25,000 Chukyo Coca Cola ................. $ 202,131
12,000 Kinki Coca Cola Bottling ......... 141,454
19,000 Kirin Beverage Corp. ............. 371,845
----------
715,430
----------
Industrial Specialty Products &
Services -- 0.2%
2,000 Disco Corp. ...................... 57,428
51,500 THK Co. .......................... 494,219
----------
551,647
----------
Retailing & Wholesale -- 0.1%
2,310 Fujimi, Inc. ..................... 92,686
2,600 Ryohin Keikaku Co ................ 222,004
10,000 Yamada Denki Co. ................. 105,033
----------
419,723
----------
Total Japan ...................... 7,948,928
==========
NETHERLANDS -- 4.1%
Diversified Companies -- 1.5%
75,562 Fugro NV Certificate ............. 2,992,406
34,941 GTI Holding NV ................... 1,305,898
7,700 Unique Intl NV ................... 245,092
----------
4,543,396
----------
Finance & Insurance -- 0.2%
7,700 Kempen & Co. NV .................. 546,978
----------
Food & Beverage Products -- 0.7%
29,395 De Boer Unigro NV ................ 1,440,575
26,330 Nutreco Holding NV ............... 939,752
----------
2,380,327
----------
Manufacturing--Distributing -- 0.8%
72,400 Koninklijke Ahrend Groep NV ...... 2,508,787
----------
Publishing, Broadcasting &
Entertainment -- 0.1%
10,000 Endemol Entertainment NV ......... 232,167
----------
Retailing & Wholesale -- 0.8%
45,386 Ceteco Holding NV Certificate .... 2,536,547
----------
Total Netherlands ................ 12,748,202
==========
NORWAY -- 1.6%
Banks -- 0.5%
137,000 Den Norske Bank AS ............... 720,226
89,700 Fokus Bank ASA ................... 757,870
----------
1,478,096
----------
Business Equipment &
Services -- 0.7%
89,810 * Tandberg ASA ..................... 2,047,556
----------
Telecommunication Services &
Equipment -- 0.4%
103,563 * Tandberg Television ASA .......... 1,374,997
----------
Total Norway ..................... 4,900,649
==========
</TABLE>
37
<PAGE>
EVERGREEN
Global Opportunities Fund
Schedule of Investments (continued)
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
PORTUGAL -- 0.1%
Finance & Insurance -- 0.1%
11,750 Banco Comercial Portugues SA ..... $ 411,937
==========
SOUTH AFRICA -- 1.1%
Diversified Companies -- 0.2%
89,200 Rembrandt Group Ltd. ............. 811,872
----------
Finance & Insurance -- 0.9%
78,700 Liberty Life Association of Africa, 2,662,782
Ltd. ----------
Total South Africa ............... 3,474,654
==========
SPAIN -- 1.6%
Food & Beverage Products -- 1.4%
28,300 * Baron de Ley SA .................. 866,838
27,370 Campofrio Alimentacion SA ........ 2,244,592
9,095 * Telepizza ........................ 1,307,817
----------
4,419,247
----------
Leisure & Tourism -- 0.2%
10,400 Sol Melia SA ..................... 495,076
----------
Total Spain ...................... 4,914,323
==========
SWEDEN -- 2.1%
Consumer Products &
Services -- 0.4%
376,100 * Swedish Match Co. AB ............. 1,301,922
----------
Healthcare Products &
Services -- 0.8%
116,400 Getinge Industrier AB, Ser. B .... 2,585,998
----------
Manufacturing--Distributing -- 0.1%
12,000 BT Industries AB ................. 240,248
----------
Metal Products & Services -- 0.1%
14,700 * Granges AB ....................... 267,722
----------
Retailing & Wholesale -- 0.7%
56,200 Lindex AB ........................ 2,141,436
----------
Total Sweden ..................... 6,537,326
==========
SWITZERLAND -- 6.9%
Advertising & Related
Services -- 0.2%
1,525 Societe Generale D'Affichage ..... 579,307
----------
Automotive Equipment &
Manufacturing -- 0.3%
2,675 Fischer Georg AG ................. 1,033,989
----------
Banks -- 0.2%
190 Verwalt & Private Bank ........... 522,959
----------
Business Equipment &
Services -- 0.3%
3,190 Danzas Holding AG ................ 856,761
----------
Diversified Companies -- 0.3%
4,000 Valora Holding AG ................ 1,044,985
----------
Electrical Equipment &
Services -- 0.7%
4,185 Phoenix Meccano AG ............... 2,245,201
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Food & Beverage Products -- 1.6%
2,110 Hero AG .......................... $1,476,508
1,546 Lindt & Spruengli AG ............. 3,379,460
----------
4,855,968
----------
Healthcare Products &
Services -- 1.1%
711 Disetronic Holding AG ............ 2,004,352
1,480 Phonak Holding AG ................ 1,301,966
----------
3,306,318
----------
Leisure & Tourism -- 1.9%
1,075 Kuoni Reisen Holding AG .......... 5,767,244
----------
Retailing & Wholesale -- 0.3%
9,600 * Tag Heuer International SA ....... 1,010,863
----------
Total Switzerland ................ 21,223,595
==========
UNITED KINGDOM -- 18.7%
Advertising & Related
Services -- 2.3%
3,330,100 Aegis Group Plc .................. 5,124,636
241,800 Cordiant Commerce Plc ............ 473,217
126,500 Dorling Kindersley Holdings Plc .. 543,803
305,050 Saatchi & Saatchi Plc ............ 806,206
----------
6,947,862
----------
Aerospace & Defense -- 0.6%
511,490 Alvis Plc ........................ 1,368,911
33,300 Close Brothers Group Plc ......... 424,998
----------
1,793,909
----------
Building, Construction &
Furnishings -- 0.9%
208,310 Berkeley Group Plc ............... 2,679,504
----------
Business Equipment &
Services -- 2.1%
553,916 Capita Group Plc ................. 4,679,002
486,132 Corporate Services Group Plc ..... 1,959,698
----------
6,638,700
----------
Chemical & Agricultural
Products -- 0.4%
155,900 Courtaulds Plc ................... 1,144,797
----------
Consumer Products &
Services -- 0.6%
88,100 Helen of Troy Ltd. ............... 1,789,531
----------
Diversified Companies -- 0.5%
30,500 DCC Plc .......................... 275,494
172,113 Lonrho Plc ....................... 1,240,820
----------
1,516,314
----------
Electrical Equipment &
Services -- 1.2%
90,400 Critchley Group Plc .............. 1,239,939
475,163 Pressac Holdings Plc ............. 2,344,674
----------
3,584,613
----------
Finance & Insurance -- 0.2%
276,700 Sedgwick Group Plc ............... 712,768
----------
</TABLE>
38
<PAGE>
EVERGREEN
Global Opportunities Fund
Schedule of Investments (continued)
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Food & Beverage Products -- 0.6%
188,400 Allied Domecq Plc ................ $1,938,090
----------
Healthcare Products &
Services -- 0.7%
82,000 London International Group Plc ... 270,208
278,703 Westminster Healthcare Holdings Plc 1,846,098
----------
2,116,306
----------
Information Services &
Technology -- 2.6%
322,700 Parity Plc ....................... 4,188,694
180,993 Sage Group Plc ................... 3,799,474
----------
7,988,168
----------
Leisure & Tourism -- 3.2%
123,063 Compass Group Plc ................ 2,130,521
210,000 Games Workshop Group Plc ......... 2,827,698
168,770 Millennium & Copthorne Hotels Plc 1,648,641
165,754 Regent Inns Plc .................. 1,053,575
721,414 Vardon Plc ....................... 2,160,009
----------
9,820,444
----------
Machinery -- Diversified 1.6%
1,119,748 Ashtead Group Plc ................ 5,057,105
----------
Manufacturing--Distributing -- 0.9%
383,900 Renishaw Plc ..................... 2,729,135
----------
Retailing & Wholesale -- 0.3%
62,000 Carpetright Plc .................. 358,828
152,778 Harvey Nichols Plc ............... 674,656
----------
1,033,484
----------
Total United Kingdom ............. 57,490,730
==========
UNITED STATES -- 39.1%
Advertising & Related
Services -- 0.6%
67,200 ADVO, Inc. ....................... 1,923,600
----------
Banks -- 2.4%
31,800 Astoria Financial Corp. .......... 1,858,312
70,900 Dime Community Bancorp, Inc. ..... 1,998,494
28,700 SIS Bancorp, Inc. ................ 1,234,100
72,500 TCF Financial Corp. .............. 2,360,781
----------
7,451,687
----------
Building, Construction &
Furnishings -- 0.9%
57,500 General Cable Corp. .............. 2,605,469
----------
Business Equipment &
Services -- 2.0%
55,000 * Lason Holdings, Inc. ............. 2,145,000
38,600 Market Facts, Inc. ............... 885,388
64,400 * Rental Service Corp. ............. 1,871,625
33,600 * Superior Consultant, Inc. ........ 1,295,700
----------
6,197,713
----------
Chemical & Agricultural
Products -- 0.8%
55,300 OM Group, Inc. ................... 2,450,481
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Consumer Products & Services --
1.6%
69,700 * Action Performance Co, Inc. ...... $2,415,540
35,000 * Scotts Co., Cl. A ................ 1,277,500
32,100 Universal Corp. .................. 1,201,744
----------
4,894,784
----------
Education -- 1.2%
40,000 Career Education Corp. ........... 910,000
137,000 Computer Learning Centers, Inc. .. 1,648,281
46,600 CorporateFamily Solutions, Inc. .. 1,231,988
----------
3,790,269
----------
Electrical Equipment &
Services -- 2.8%
13,900 * Analog Devices, Inc. ............. 541,231
75,300 Applied Power, Inc., Cl. A ....... 2,814,338
45,000 * Pri Automation, Inc. ............. 1,202,344
29,600 * QLogic Corp. ..................... 1,307,950
12,100 * Sipex Corp. ...................... 241,622
43,800 * Vitesse Semiconductor Corp. ...... 2,522,606
----------
8,630,091
----------
Finance & Insurance -- 3.1%
50,000 Blanch E W Holdings, Inc. ........ 1,763,640
38,100 Capital RE Corp. ................. 2,812,256
100,300 * First Alliance Co. ............... 1,658,084
23,700 * Freedom Secs Corp. ............... 525,844
21,800 Investors Financial Services
Corp. ............................ 1,171,750
81,600 Penn-America Group, Inc. ......... 1,647,300
----------
9,578,874
----------
Food & Beverage Products -- 1.7%
42,100 * Suiza Foods Corp. ................ 2,494,425
68,900 * Twinlab Corp. .................... 2,695,713
----------
5,190,138
----------
Healthcare Products &
Services -- 3.8%
68,500 * Bioreliance Corp. ................ 1,027,500
38,986 * Concentra Managed Care, Inc. ..... 1,208,566
89,600 * Health Management Associates,
Inc., Cl. A ...................... 2,822,400
85,500 * Idexx Laboratories, Inc. ......... 1,883,672
118,800 * Mariner Health Group, Inc. ....... 2,142,112
35,966 * Total Renal Care Holdings, Inc. .. 1,191,374
48,500 * Wesley Jessen Visioncare, Inc. ... 1,494,406
----------
11,770,030
----------
Industrial Specialty Products &
Services -- 0.8%
79,100 Roper Industries, Inc. ........... 2,452,100
----------
Information Services &
Technology -- 5.5%
73,700 * CCC Information Services Group,Inc. 1,791,831
71,500 * Discreet Logic, Inc. .............. 1,269,125
96,700 * Eletronics for Imaging, Inc. ...... 1,979,328
37,200 * EMC Corp. ......................... 1,715,850
40,000 * FileNet Corp. ..................... 2,177,500
55,200 * JDA Software Group, Inc. .......... 2,780,700
</TABLE>
39
<PAGE>
EVERGREEN
Global Opportunities Fund
Schedule of Investments (continued)
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Information Services &
Technology -- continued
19,400 * Lycos, Inc. ........................ $ 1,198,556
19,525 * Mobius Management Systems, Inc. .... 359,992
92,700 * Platinum Software Corp. ............ 2,062,575
47,500 * SunGuard Data Systems, Inc. ........ 1,692,188
------------
17,027,645
------------
Oil/Energy -- 0.4%
63,800 * Basin Exploration, Inc. ............ 1,270,019
------------
Oil Field Services -- 1.0%
31,400 * EVI, Inc. .......................... 1,672,050
41,200 * R & B Falcon Corp. ................. 1,320,975
------------
2,993,025
------------
Pharmaceuticals -- 0.3%
19,300 * Incyte Pharmacuticals, Inc. ........ 869,706
------------
Publishing, Broadcasting &
Entertainment -- 3.5%
58,800 * Big Flower Holdings, Inc. .......... 1,782,375
33,800 * Hearst-Argyle Television, Inc. ..... 1,208,350
36,300 * Jacor Communications, Inc. ......... 2,063,428
38,600 * Sinclair Broadcast Group, Inc., Cl. A 2,002,375
42,000 * Univision Communications, Inc. Cl. A . 1,609,125
51,000 * Valassis Communications, Inc. ...... 2,001,750
------------
10,667,403
------------
Retailing & Wholesale -- 1.1%
29,400 * Brylane, Inc. ...................... 1,727,250
8,800 * Goodys Family Clothing, Inc. ....... 432,850
44,000 Michaels Stores, Inc. .............. 1,338,399
------------
3,498,499
------------
Telecommunication Services &
Equipment -- 3.6%
135,000 * Antec Corp. ........................ 2,670,469
43,200 * Global TeleSystems Group, Inc. ..... 2,038,500
37,700 * IDT Corp. .......................... 1,158,097
22,500 * Natural Microsystems Corp. ......... 722,813
22,500 * Pacific Gateway Exchange, Inc. ..... 1,283,906
58,300 * Pairgain Technologies, Inc. ........ 1,073,084
93,700 Scientific Atlanta, Inc. ........... 2,237,087
------------
11,183,956
------------
Transportation -- 1.5%
50,000 Covenant Transport, Inc., Cl. A .... 950,000
120,200 * Fritz Companies, Inc. .............. 1,750,413
60,400 * Mesaba Holdings Inc. ............... 1,996,975
------------
4,697,388
------------
Utilities--Telephone -- 0.5%
50,000 * Star Telecommunications, Inc. ...... 1,351,563
------------
Total United States ................ 120,494,440
============
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Utilities--Telephone -- continued
Total Common Stocks
(cost $220,882,364)................. $295,970,284
============
PREFERRED STOCKS -- 0.4%
BRAZIL -- 0.4%
Aerospace & Defense -- 0.4%
72,696,030 Empresa Brasileira de
Aeronautica ........................ 1,271,298
------------
Telecommunication Services &
Equipment 0.0% --
48,084 Compania Riograndense de
Telecommunica, Receipts ............ 54,658
------------
Total Brazil ....................... 1,325,956
============
Total Preferred Stocks
(cost $1,337,486)................... 1,325,956
============
Rights -- 0.0% (a)
AUSTRALIA -- 0.0% (a)
Finance & Insurance -- 0.0%
43,612 Tyndall Australia Ltd., Expires 5/98. 17,636
============
PORTUGAL -- 0.0% (a)
Finance & Insurance -- 0.0%
2,323 Banco Comercial Portuges SA ........ 38,517
============
Total Rights
(cost $56,897)...................... 56,153
============
MUTUAL FUND SHARES -- 0.2%
NETHERLANDS -- 0.2%
Mutual Funds -- 0.2%
11,400 Orange Fund NV ..................... 467,828
============
Total Mutual Fund Shares
(cost $445,322)..................... 467,828
============
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C> <C>
REPURCHASE AGREEMENT -- 2.3%
UNITED STATES -- 2.3%
$ 7,231,000 Keystone Joint Repurchase Agreement,
Investments in repurchase
agreements, in a joint trading
account, purchased 4/30/98, 5.52%
maturing 5/1/98, maturity value
$7,232,109 (b) .................... 7,231,000
---------
Total Repurchase
Agreement
(cost $7,231,000).................. 7,231,000
---------
Total Investments --
(cost $229,953,069) ..... 98.9% 305,051,221
Other Assets and
Liabilities -- Net ...... 1.1% 3,324,520
---- -----------
Net Assets ............... 100% $308,375,741
==== ============
</TABLE>
* Non-income producing securities.
(a) Less than one-tenth percent.
(b) The repurchase agreements are fully collateralized by U.S. government
and/or agency obligations based on market prices plus accrued interest at
April 30, 1998.
See Combined Notes to Financial Statements.
40
<PAGE>
EVERGREEN
Global Opportunities Fund
Schedule of Investments (continued)
April 30, 1998 (unaudited)
Summary of Portfolio Abbreviations:
ADR American Depository Receipt
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
<TABLE>
<CAPTION>
Forward Foreign Currency Exchange Contracts to Sell:
Unrealized
U.S. Value at In Exchange Appreciation
Exchange Date Contracts to Deliver April 30, 1998 for U.S. $ (Depreciation)
- --------------- ----------------------------------------- ---------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
7/27/98 2,592,888 Australian Dollar $ 1,694,168 $ 1,693,000 $ (1,168)
5/1/98 14,555 British Pound Sterling 24,346 24,263 (83)
5/6/98 298,921 British Pound Sterling 500,005 498,779 (1,226)
5/6/98 300,143 British Pound Sterling 502,048 500,818 (1,231)
5/6/98 298,490 British Pound Sterling 499,283 498,060 (1,224)
5/4/98 1,191,016 French Franc 198,139 198,212 73
5/5/98 1,218,428 French Franc 202,700 202,296 (404)
5/18/98 72,106,905 French Franc 12,008,179 11,890,000 (118,179)
5/29/98 2,940,308 French Franc 489,154 490,084 929
5/4/98 642,355 German Marks 357,947 358,437 489
5/4/98 236,797 German Marks 131,954 131,840 (114)
5/18/98 14,369,018 German Marks 8,015,138 7,940,000 (75,138)
5/4/98 443,311,065 Italian Lira 250,267 250,600 333
5/6/98 547,562,399 Italian Lira 309,122 308,225 (896)
5/6/98 734,504,138 Italian Lira 414,658 413,456 (1,202)
7/27/98 930,959,430 Japanese Yen 7,122,830 7,233,000 110,170
5/4/98 473,592 Netherlands Guilder 234,440 234,905 465
5/5/98 327,916.25 Netherlands Guilder 162,327 162,206 (120)
5/18/98 12,096,014 Netherlands Guilder 5,994,060 5,930,000 (64,060)
5/4/98 44,787,234 Spanish Peseta 294,072 294,053 (19)
6/3/98 376,111,750 Spanish Peseta 2,472,334 2,450,000 (22,334)
6/3/98 23,635,008 Swedish Krona 3,055,936 2,960,000 (95,936)
5/1/98 9,485 Swiss Franc 6,321 6,307 (14)
5/4/98 729,394 Swiss Franc 486,101 489,001 2,900
5/4/98 376,124 Swiss Franc 250,666 252,162 1,496
5/18/98 14,023,290 Swiss Franc 9,365,099 9,700,000 334,901
</TABLE>
See Combined Notes to Financial Statements.
41
<PAGE>
EVERGREEN
International Growth Fund
Schedule of Investments
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- 87.2%
ARGENTINA -- 0.3%
Oil/Energy -- 0.3%
44,800 Transportadora de Gas del Sur
SA, ADR ("TGS") .................. $ 518,000
==========
AUSTRALIA -- 2.7%
Banks -- 0.9%
116,000 National Australia Bank Ltd. ..... 1,649,410
----------
Finance & Insurance -- 0.3%
55,625 QBE Insurance Group Ltd. ......... 255,421
181,500 Tyndall Australia Ltd. ........... 313,716
----------
569,137
----------
Food & Beverage Products -- 0.2%
162,000 Fosters Brewing Group Ltd. ....... 352,920
----------
Healthcare Products &
Services -- 1.0%
1,369,387 Sonic Healthcare Ltd. ............ 1,831,025
----------
Machinery--Diversified -- 0.2%
108,500 Evans Deakin Industries Ltd. ..... 304,307
----------
Manufacturing--Distributing -- 0.1%
45,937 Siddons Ramset Ltd. .............. 215,730
----------
Total Australia .................. 4,922,529
==========
CANADA -- 3.5%
Banks -- 1.5%
136,100 National Bank of Canada .......... 2,807,755
----------
Chemical & Agricultural
Products -- 0.7%
13,780 Potash Corp. of Saskatchewan, Inc. 1,227,716
----------
Finance & Insurance -- 0.4%
6,000 * BRL Enterprises, Inc. ............ 21,190
16,400 Power Corp. of Canada ............ 655,449
----------
676,639
----------
Publishing, Broadcasting &
Entertainment -- 0.9%
87,305 Quebecor, Inc., Cl. B ............ 1,737,003
----------
Total Canada ..................... 6,449,113
==========
FINLAND -- 0.1%
Paper & Packaging -- 0.1%
15,500 Valmet OYJ ....................... 256,977
==========
FRANCE -- 13.8%
Advertising & Related
Services -- 0.3%
5,449 Dauphin O.T.A. ................... 504,017
----------
Automotive Equipment &
Manufacturing -- 0.3%
8,383 Compagnie Generale des
Etablissements Michelin, Cl. B ... 528,418
----------
Banks -- 2.2%
20,250 * Banque Nationale de Paris ........ 1,707,994
2,400 * Cie Fin de Paribas, Cl. A ........ 255,531
20,353 Credit Commerce de France ........ 1,625,260
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Banks -- continued
2,500 Societe Generale SA .............. $ 520,712
----------
4,109,497
----------
Building, Construction &
Furnishings -- 1.0%
19,317 Lafarge SA ....................... 1,825,329
----------
Business Equipment &
Services -- 1.5%
16,829 * ATOS SA .......................... 2,813,699
----------
Electrical Equipment &
Services -- 0.4%
1,900 Le Carbone Lorraine .............. 779,155
----------
Finance & Insurance -- 3.6%
22,800 AXA-UAP .......................... 2,677,891
17,970 Scor ............................. 1,108,514
4,829 * Societe Eurafrance SA ............ 2,715,358
----------
6,501,763
----------
Food & Beverage Products -- 1.0%
26,350 Pernod Ricard SA ................. 1,819,206
----------
Healthcare Products &
Services -- 1.7%
62,511 Rhone-Poulenc SA, Cl. A .......... 3,058,474
----------
Information Services &
Technology -- 0.3%
11,800 Dassault Systemes SA ............. 463,284
----------
Machinery--Diversified -- 0.3%
4,347 Norbert Dentressangle SA ......... 618,314
----------
Oil/Energy -- 1.2%
16,945 Societe Nationale Elf Aquitaine SA. 2,224,190
----------
Total France ..................... 25,245,346
==========
GERMANY -- 7.2%
Automotive Equipment &
Manufacturing -- 0.6%
10,850 Daimler- Benz AG ................. 1,059,274
----------
Information Services &
Technology -- 0.8%
30,620 Boewe Systec AG .................. 1,433,273
----------
Metal Products & Services -- 0.4%
4,725 KM Europa Metal AG ............... 671,408
----------
Paper & Packaging -- 0.7%
4,875 Schmalbach Lubeca AG ............. 1,200,176
----------
Publishing, Broadcasting &
Entertainment -- 0.9%
1,960 Springer (Axel) Verlag AG ........ 1,742,052
----------
Retailing & Wholesale -- 2.2%
9,070 Karstadt AG ...................... 4,093,895
----------
Utilities--Electric -- 1.6%
59,230 Berliner Kraft & Licht AG ........ 2,970,494
----------
Total Germany .................... 13,170,572
==========
</TABLE>
42
<PAGE>
EVERGREEN
International Growth Fund
Schedule of Investments (continued)
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
GREECE -- 0.3%
Banks -- 0.3%
6,000 Ergo Bank SA, GDR ..................... $ 564,903
==========
HONG KONG -- 0.2%
Leisure &
Tourism -- 0.2%
618,000 Mandarin Oriental International, Ltd... 438,780
==========
INDIA -- 0.1%
Textile & Apparel -- 0.1%
14,000 * Reliance Industries Ltd., GDR, 144A ... 127,750
5,000 * Reliance Industries Ltd., GDS ......... 45,625
----------
Total India ........................... 173,375
==========
ITALY -- 3.3%
Finance &
Insurance -- 0.2%
117,000 Parmalat Finanziara SpA ............... 263,875
----------
Publishing,
Broadcasting &
Entertainment -- 0.9%
152,450 Arn Mondadori Edit SpA ................ 1,721,716
----------
Telecommunication
Services &
Equipment -- 2.2%
157,500 Telecom Italia Mobile ................. 898,044
(TIM) SpA
414,598 Telecom Italia SpA .................... 3,101,264
----------
3,999,308
----------
Total Italy ........................... 5,984,899
==========
JAPAN -- 2.9%
Automotive Equipment &
Manufacturing -- 0.2%
13,000 Toyota Motor Corp. .................... 338,900
----------
Business Equipment &
Services -- 0.4%
38,000 Fujitsu Ltd. .......................... 443,630
6,000 Secom Co. Ltd. ........................ 353,635
----------
797,265
----------
Consumer Products &
Services -- 0.2%
28,000 Kao Corp. ............................. 411,516
600 Sony Corp. ............................ 49,917
----------
461,433
----------
Finance &
Insurance -- 0.7%
3,190 Nichiei Co. Ltd. ...................... 248,277
2,000 Shohkoh Fund & Co. Ltd................. 636,240
15,000 Sumitomo Fire & Marine
Insurance Co. ......................... 89,429
69,000 Yasuda Fire & Marine Insurance Co...... 312,831
----------
1,286,777
----------
Healthcare Products &
Services -- 0.4%
36,000 Taisho Pharmaceutical Co............... 761,674
----------
Leisure &
Tourism -- 0.6%
30,000 Fuji Photo Film Co..................... 1,067,704
----------
Retailing &
Wholesale -- 0.2%
5,000 Seven-Eleven Japan Co. Ltd. ........... 334,366
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Utilities--Telephone -- 0.2%
40 Nippon Telephone & Telegraph Corp. $ 350,612
----------
Total Japan ........................... 5,398,731
==========
MEXICO -- 0.3%
Food & Beverage
Products -- 0.3%
15,610 Panamerican Beverages, Inc., Cl. A .... 622,449
----------
NETHERLANDS -- 7.6%
Advertising & Related
Services -- 0.5%
40,000 Telegraaf Holdings NV Certificate ..... 920,747
----------
Building, Construction &
Furnishings -- 0.7%
78,700 Boskalis Westminster NV ............... 1,289,525
----------
Consumer Products &
Services -- 1.4%
29,715 Philips Electronics NV ................ 2,610,966
----------
Diversified
Companies -- 0.7%
7,480 Fugro NV Certificate 296,223
15,196 Unilever NV CVA ....................... 1,081,721
----------
1,377,944
----------
Finance &
Insurance -- 1.3%
18,315 AEGON NV .............................. 2,373,579
----------
Food & Beverage Products -- 1.1%
29,910 De Boer Unigro NV ..................... 1,465,814
16,710 Koninklijke Ahold NV .................. 516,164
----------
1,981,978
----------
Oil/Energy -- 1.1%
35,095 Royal Dutch Petroleum Co. ............. 1,933,604
----------
Retailing &
Wholesale -- 0.2%
5,665 Ceteco Holding NV Certificate.......... 316,607
----------
Transportation -- 0.6%
27,100 Koninklijke Van Ommeren NV
Certificate ........................... 1,167,121
----------
Total Netherlands ..................... 13,972,071
==========
SOUTH AFRICA -- 2.4%
Diversified Companies -- 0.8%
102,000 Rembrandt Controlling
Investments Ltd. ...................... 615,552
65,200 Rembrandt Group Ltd. 593,431
73,000 Technical & Industrial
Investments Ltd. ...................... 350,267
----------
1,559,250
----------
Finance &
Insurance -- 1.3%
58,725 Liberty Life Association of Africa, Ltd. 1,986,936
90,000 Tegniese Beleggings Korp BPK .......... 400,673
----------
2,387,609
----------
Retailing &
Wholesale -- 0.3%
339,250 New Clicks Holdings Ltd. .............. 537,000
----------
Total South Africa .................... 4,483,859
==========
</TABLE>
43
<PAGE>
EVERGREEN
International Growth Fund
Schedule of Investments (continued)
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
SPAIN - 2.7%
Banks - 1.8%
14,380 Banco Popular Espana SA .............. $1,180,237
35,700 Banco Santander SA ................... 1,886,967
2,792 Corporacion Bancaria de Espana SA .... 232,819
----------
3,300,023
----------
Oil/Energy - 0.9%
30,650 Repsol SA (RG) ....................... 1,680,417
----------
Total Spain .......................... 4,980,440
==========
SWEDEN - 9.7%
Automotive Equipment &
Manufacturing - 1.2%
73,000 Volvo AB, Ser. B ..................... 2,130,974
----------
Banks - 1.4%
100,200 Skandinaviska Enskilda Banken, Ser. B. 1,669,568
14,700 Sparbanken Sverige AB, Ser. A ........ 459,494
10,500 Svenska Handelsbanken, Ser. A ........ 476,040
----------
2,605,102
----------
Building, Construction &
Furnishings -- 1.6%
85,800 Assa Abloy AB, Ser. B ................ 2,992,250
----------
Consumer Products &
Services -- 1.3%
17,500 Electrolux AB, Ser. B ................ 1,627,486
235,700 Swedish Match Co. AB ................. 815,908
----------
2,443,394
----------
Healthcare Products &
Services -- 4.0%
186,982 Astra AB, Ser. A ..................... 3,840,111
41,600 Getinge Industrier AB, Ser. B ........ 924,206
56,387 Pharmacia & Upjohn, Inc............... 2,458,100
----------
7,222,417
----------
Metal Products &
Services -- 0.2%
16,750 Granges AB ........................... 305,057
----------
Real Estate -- 0.0%
14,700 Mandamus AB .......................... 0
----------
Total Sweden ......................... 17,699,194
==========
SWITZERLAND -- 11.8%
Advertising & Related
Services -- 1.1%
6,295 Edipresse SA ......................... 2,013,729
----------
Building, Construction &
Furnishings -- 1.8%
3,185 Holderbank Financiere Glarus AG ...... 3,370,729
----------
Business Equipment &
Services -- 1.1%
1,140 SGS Holding AG ....................... 1,941,153
----------
Food & Beverage
Products -- 5.5%
1,170 Hero AG .............................. 818,727
550 Lindt & Spruengli AG ................. 1,202,266
4,155 Nestle SA ............................ 8,058,014
----------
10,079,007
----------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Healthcare Products &
Services -- 2.3%
1,722 Novartis AG .......................... $2,855,272
806 Novartis AG, Registered Shares ....... 1,332,143
----------
4,187,415
----------
Total Switzerland .................... 21,592,033
==========
UNITED KINGDOM -- 18.3%
Advertising & Related
Services -- 1.8%
319,950 Cordiant Commerce Plc ................ 626,161
132,000 Pearson Publishing Plc ............... 2,068,862
251,350 Saatchi & Saatchi Plc ................ 664,284
----------
3,359,307
----------
Aerospace & Defense -- 1.5%
219,800 Close Brothers Group Plc ............. 2,805,241
----------
Building, Construction &
Furnishings -- 0.3%
236,000 Pilkington Plc ....................... 495,420
----------
Diversified Companies -- 1.8%
215,996 Lonrho Plc ........................... 1,557,188
238,500 Morgan Crucible Co. Plc .............. 1,800,291
----------
3,357,479
----------
Food & Beverage Products -- 4.0%
337,686 B.A.T. Industries Plc ................ 3,185,738
236,814 Diageo Plc ........................... 2,820,365
37,276 Diageo Plc, Ser. B ................... 317,993
175,000 Gallaher Group Plc ................... 913,294
----------
7,237,390
----------
Healthcare Products & Services -- 2.6%
32,257 Glaxo Wellcome Plc ................... 911,861
804,200 London International Group Plc ....... 2,650,014
19,600 SmithKline Beecham Plc, ADR .......... 1,167,425
----------
4,729,300
----------
Leisure & Tourism -- 2.2%
155,717 Compass Group Plc .................... 2,695,841
61,960 Games Workshop Group Plc ............. 834,306
157,603 Vardon Plc ........................... 471,884
----------
4,002,031
----------
Machinery--Diversified - 1.1%
436,100 Ashtead Group Plc .................... 1,969,554
----------
Oil/Energy - 1.4%
158,082 British Petroleum Co. Plc ............ 2,498,804
----------
Retailing & Wholesale -- 0.2%
62,000 Carpetright Plc ...................... 358,827
----------
Telecommunication Services &
Equipment - 1.1%
188,717 Vodafone Group Plc ................... 2,067,618
----------
</TABLE>
44
<PAGE>
EVERGREEN
International Growth Fund
Schedule of Investments (continued)
April 30, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Transportation -- 0.3%
57,400 British Airways Plc ........................ $ 598,161
------------
Total United Kingdom ....................... 33,479,132
============
Total Common Stocks
(cost $115,116,861)......................... 159,952,403
============
PREFERRED STOCKS -- 1.4%
BRAZIL -- 0.8%
Aerospace & Defense -- 0.8%
87,362,077 Empresa Brasileira de Aeronautica .......... 1,527,777
------------
Telecommunication Services &
Equipment -- 0.0% (a)
41,316 Compania Riograndense de
Telecommunica, Receipts .................... 46,964
------------
Total Brazil ............................... 1,574,741
============
FRANCE -- 0.1%
Building, Construction &
Furnishings -- 0.1%
1,609 Lafarge SA ................................. 147,757
============
GERMANY -- 0.5%
Building, Construction &
Furnishings -- 0.5%
3,000 Grohe (Friedrich) AG ....................... 944,526
============
Total Preferred Stocks
(cost $2,430,846)........................... 2,667,024
============
RIGHTS -- 0.0% (a)
AUSTRALIA -- 0.0% (a)
Finance & Insurance -- 0.0%
18,150 * Tyndall Australia Ltd., Expires 5/98 ....... 7,340
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
RIGHTS -- continued
FRANCE -- 0.0% (a)
Building, Construction &
Furnishings -- 0.0%
7 * Lafarge SA, Expires 4/30/98 ................ $ 6
============
Total Rights
(cost $6,195)............................... 7,346
============
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C> <C>
CONVERTIBLE DEBENTURES -- 0.0% (a)
BRAZIL -- 0.0%
Iron & Steel -- 0.0%
$ 56,500 * Compania Vale do Rio Doce
Navegacao SA ................................ 5
----------
Total Convertible Debentures
(cost $0).................................... 5
----------
REPURCHASE AGREEMENT -- 10.3%
UNITED STATES -- 10.3%
$18,834,000 Keystone Joint Repurchase
Agreement, Investments in
repurchase agreements, in
a joint trading account, purchased
4/30/98, 5.52% maturing 5/1/98,
maturity value $18,836,888
(cost $18,834,000) (b)....................... 18,834,000
----------
Total Repurchase
Agreements
(cost $18,834,000)........................... 18,834,000
----------
Total Investments --
(cost $136,387,902) ................. 98.9% 181,460,778
Other Assets and
Liabilities -- Net ................... 1.1% 1,990,456
---- -----------
Net Assets ............................ 100% $183,451,234
==== ============
</TABLE>
* Non-income producing securities.
144A Securities that may be resold to qualified institutional buyers under
Rule 144A of the Securities Act of 1933. These securities have been
determined to be liquid under guidelines established by the Fund's Board
of Trustees.
(a) Less than one-tenth percent.
(b) The repurchase agreements are fully collateralized by U.S. government
and/or agency obligations based on market prices plus accrued interest at
April 30, 1998.
Summary of Portfolio Abbreviations:
ADR American Depository Receipts
ADS American Depository Shares
GDR Global Depository Receipts
GDS Global Depository Shares
See Combined Notes to Financial Statements.
45
<PAGE>
EVERGREEN
International Growth Fund
Schedule of Investments (continued)
April 30, 1998 (unaudited)
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
<TABLE>
<CAPTION>
Forward Foreign Currency Exchange Contracts to Buy:
Unrealized
U.S. Value at In Exchange Appreciation
Exchange Date Contracts to Receive April 30, 1998 for U.S. $ (Depreciation)
- --------------- -------------------------------- ---------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
5/4/98 91,902,375 French Franc $15,292,531 $15,271,249 $21,282
6/3/98 257,029,894 Spanish Peseta 1,689,561 1,658,659 30,902
</TABLE>
<TABLE>
<CAPTION>
Forward Foreign Currency Exchange Contracts to Sell:
Unrealized
U.S. Value at In Exchange Appreciation
Exchange Date Contracts to Deliver April 30, 1998 for U.S. $ (Depreciation)
- --------------- ------------------------------------ ---------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
7/8/98 4,632,503 Australian Dollar $ 3,025,626 $ 3,060,000 $ 34,374
5/4/98 91,902,375 French Franc 15,292,531 15,100,000 (192,531)
8/5/98 90,763,678 French Franc 15,181,424 15,160,000 (21,424)
5/18/98 15,515,971 German Marks 8,654,916 8,562,000 (92,916)
5/4/98 188,357,044 Greek Drachma 599,119 597,011 (2,108)
5/7/98 91,682,755 Italian Lira 51,759 51,653 (106)
7/27/98 625,868,100 Japanese Yen 4,788,557 4,863,000 74,443
5/18/98 21,718,900 Netherlands Guilder 10,762,587 10,640,000 (122,587)
6/3/98 588,165,440 Spanish Peseta 3,866,248 3,830,000 (36,248)
6/3/98 74,717,136 Swedish Krona 9,660,704 9,360,000 (300,704)
5/18/98 21,408,525 Swiss Franc 14,297,141 14,790,000 492,859
</TABLE>
See Combined Notes to Financial Statements.
46
<PAGE>
EVERGREEN
Latin America
Schedule of Investments
April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- 59.5%
ARGENTINA -- 5.1%
Diversified Companies -- 0.7%
146,483 * CEI Citicorp Holdings SA, Cl. B ....... $ 615,318
----------
Oil/Energy -- 2.8%
209,979 * Perez Compancia SA, Cl. B ............. 1,262,157
38,525 YPF Sociedad Anonima, ADR ............. 1,343,559
----------
2,605,716
----------
Telecommunication Services &
Equipment -- 1.6%
13,400 Telecom Argentina STET -- France
Telecom SA, ADR ....................... 482,400
25,260 Telefonica de Argentina, ADR, Cl. B ... 974,089
----------
1,456,489
----------
Total Argentina ....................... 4,677,523
==========
BRAZIL -- 15.0
Finance & Insurance -- 1.1%
25,550 Uniao de Bancos Brasileiros SA, GDR ... 1,015,613
----------
Machinery--Diversified -- 0.0% a)
76,320 * Inepar SA, Receipts ................... 0
----------
Telecommunication Services &
Equipment -- 9.3%
70,105 * Telecomunicacoes Brasileiras SA,
("Telebras") ADR ...................... 8,539,665
----------
Utilities--Water -- 0.9%
3,509,100 * Companhia de Saneamento Basicodo
Estado ("SABESP") ..................... 797,767
----------
Utilities -- 3.7%
13,201 * Cia Paulista De Forca E ............... 0
Luz,Receipts
50,000,000 Companhia Paranaense de
Energia-Copel ......................... 577,099
26,700 Companhia Paranaense de
Energia-Copel, ADR, 6.25%,TIDES ....... 380,475
----------
41,451,100 Eletrobras SA ......................... 1,703,495
2,859,500 Light Participacoes SA ................ 700,092
----------
3,361,161
----------
Total Brazil .......................... 13,714,206
==========
CHILE -- 0.4%
Chemical & Agricultural
Products -- 0.2%
5,200 Sociedad Quimica y Minera de Chile
SA, ADR ............................... 225,875
----------
Industrial Specialty Products &
Services -- 0.2%
10,234 Madeco SA, ADR ........................ 163,744
----------
Total Chile ........................... 389,619
==========
COLOMBIA -- 1.1%
Finance & Insurance -- 0.3%
110,952 Valores Bavaria SA .................... 276,354
----------
Food & Beverage Products -- 0.8%
110,952 Bavaria ............................... 707,059
----------
Total Colombia ........................ 983,413
==========
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
MEXICO -- 36.3%
Building, Construction &
Furnishings -- 7.5%
431,100 Apasco SA de CV ............................ $2,928,226
56,300 * Bufete Industrial .......................... 105,961
444,800 Cemex SA de CV, Ser. B ..................... 2,675,094
44,000 * Corp. Geo SA de CV, Ser. B ................. 304,057
49,200 * Tubos de Acero de Mexico SA, ADR ........... 904,050
----------
6,917,388
----------
Diversified Companies -- 1.1%
166,400 Grupo Carso SA de CV, Ser. A1 .............. 1,047,849
----------
Finance & Insurance -- 8.2%
1,511,950 Grupo Finance Banamex Accival SA de
CV, Ser. B ................................. 4,724,844
3,986,400 * Grupo Financiero Bancomer SA
de CV, Cl. B ............................... 2,754,753
----------
7,479,597
----------
Food & Beverage Products -- 8.9%
437,480 Fomento Economico Mexicano
SA, Ser. B ................................. 3,239,828
517,320 GPO Industries Bimbo, Ser. A ............... 1,299,400
69,300 Panamerican Beverages, Inc.,
Cl. A, ADR ................................. 2,763,338
61,000 Pepsi Gemex SA de CV ....................... 827,312
----------
8,129,878
----------
Machinery--Diversified -- 0.3%
50,000 Industrias CH SA, Cl. B .................... 247,052
----------
Publishing, Broadcasting &
Entertainment -- 3.6%
46,600 * Grupo Televisa SA, ADR ..................... 1,910,600
75,850 TV Azteca SA de CV ......................... 1,412,706
----------
3,323,306
----------
Retailing & Wholesale -- 3.4%
560,000 Cifra SA de CV, Cl. C ...................... 952,264
409,167 Cifra SA de CV, Ser. V ..................... 718,937
379,000 Organiz Soriana, Ser. B .................... 1,432,424
----------
3,103,625
----------
Telecommunication Services &
Equipment -- 3.3%
53,902 Telefonos de Mexico SA, ADR ................ 3,052,201
----------
Total Mexico ............................... 33,300,896
==========
PERU -- 1.6%
Finance & Insurance -- 0.8%
125,732 Cem Norte Pacasmay ......................... 200,246
29,000 Credicorp Ltd. ............................. 485,750
----------
685,996
----------
Telecommunication Services &
Equipment -- 0.8%
162,500 Enrique Ferreyros .......................... 204,167
</TABLE>
47
<PAGE>
EVERGREEN
Latin America
Schedule of Investments (continued)
April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
Telecommunication Services &
Equipment -- continued
25,500 Telefonica del Peru SA, ADR ....... $ 564,188
-----------
768,355
-----------
Total Peru ........................ 1,454,351
===========
Total Common Stocks
(Cost -- $46,272,408).............. 54,520,008
===========
PREFERRED STOCKS -- 32.9%
BRAZIL -- 32.9%
Aerospace & Defense -- 2.6%
136,607,347 Empresa Brasileira de Aeronautica . 2,388,971
-----------
Automotive Equipment &
Manufacturing -- 0.3%
5,530,000 * Freios Varga SA ................... 241,238
-----------
Electrical Equipment & Services --
2.1%
39,490,700 Compania Energetica de Minas Gerais 1,916,438
-----------
Iron & Steel -- 3.3%
30,160,000 * Caemi Mineracao E Metalurgia SA ... 2,162,480
35,347 Compania Vale do Rio Doce
Navegacao SA ...................... 834,494
-----------
2,996,974
-----------
Oil/Energy -- 3.1%
11,103,000 * Petroleo Brasileiro SA,("Petrobras") 2,815,433
-----------
Telecommunication Services &
Equipment -- 21.5%
5,674,600 Companhia Riograndense de
Telecomunica ...................... 7,492,367
110,700 Compania Riograndense de
Telecommunica, Receipts ........... 125,834
24,600,000 * Ericsson Telecom SA ............... 752,853
5,111,726 Telecomunicacoes de Minas Gerais .. 788,895
19,644,921 Telecomunicacoes de Rio de Janiero SA 3,091,930
22,017,860 * Telecomunicaoes de Sao Paulo SA ... 7,489,133
-----------
19,741,012
-----------
Total Brazil ...................... 30,100,066
===========
Total Preferred Stocks
(Cost -- $27,001,227).............. 30,100,066
===========
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
WARRANTS -- 0.0% (a)
BRAZIL -- 0.0%
Machinery--Diversified -- 0.0%
38,160 Inepar Energia, Warrants, Ser. B ... $ 0
38,160 Inepar Energia, Warrants, Ser. C ... 0
-----------
Total Brazil ......................... 0
===========
Total Warrants
(Cost -- $0).......................... 0
===========
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
<S> <C> <C> <C>
CONVERTIBLE DEBENTURES -- 0.0% (a)
BRAZIL -- 0.0%
Iron & Steel -- 0.0%
$ 207,800 Compania Vale do Rio Doce Navegacao
SA ............................... 18
======
Total Convertible Debentures
(Cost -- $0)...................... 18
======
CORPORATE BONDS -- 0.0% (a)
BRAZIL -- 0.0%
Diversified Companies -- 0.0%
200,000 * Mesbla SA (c) .................... 31,700
======
Total Corporate Bonds
(Cost -- $214,460)................ 31,700
======
REPURCHASE AGREEMENT -- 6.4%
UNITED STATES -- 6.4%
5,905,000 Keystone Joint Repurchase Agreement,
Investments in repurchase
agreements, in a joint trading
account, purchased 4/30/98, 5.52%
maturing 5/1/98, maturity value
$5,905,905 (cost $5,905,000) (b).. 5,905,000
---------
Total Repurchase Agreement
(Cost -- $5,905,000).............. 5,905,000
---------
Total Investments --
(Cost $79,393,095) ...... 98.8% 90,556,792
Other Assets and
Liabilities -- Net ...... 1.2% 1,080,445
---- ----------
Net Assets .............. 100% $91,637,237
==== ===========
</TABLE>
* Non-income producing securities.
(a) Less than one-tenth percent.
(b) The repurchase agreements are fully collateralized by U.S. government
and/or agency obligations based on market prices plus accrued interest at
April 30, 1998.
(c) Securities which have defaulted on payment of interest and/or principal.
The Fund has stopped accruing income on those so identified. At April 30,
1998, the fair value of this security is $31,700 (0.03% of the Fund's
net assets).
Summary of Portfolio Abbreviations:
ADR American Depository Receipts
GDR Global Depository Receipts
TIDES Term Income Deferrable Equity Securities
48
<PAGE>
EVERGREEN
Latin America
Schedule of Investments (continued)
April 30, 1998 (Unaudited)
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
<TABLE>
<CAPTION>
Forward Foreign Currency Exchange Contracts to Buy:
Unrealized
U.S. Value at In Exchange Appreciation
Exchange Date Contracts to Receive April 30, 1998 for U.S. $ (Depreciation)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
5/6/98 4,249,083 Mexican Peso $499,745 $501,071 $ 1,326
Forward Foreign Currency Exchange Contracts to Sell:
Contracts to Deliver
- --------------------------------------------------------------------------------------------------------
4/30/98 76,475 Brazilian Real $ 66,907 $ 66,869 $ 38
5/6/98 8,388,161 Mexican Peso 986,552 989,170 (2,618)
5/6/98 31,251,610 Venezuelan Bolivar 58,346 58,318 27
</TABLE>
See Combined Notes to Financial Statements.
49
<PAGE>
EVERGREEN
Natural Resources Fund
Schedule of Investments
April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- 84.3%
AUSTRALIA -- 5.5%
Finance & Insurance -- 0.6%
600,000 * First Resources Development Fund** $ 84,140
----------
Oil / Energy -- 4.9%
119,800 * Santos Ltd. ........................ 432,112
46,800 Woodside Petroleum ................. 306,169
----------
738,281
----------
Total Australia .................... 822,421
==========
CANADA -- 21.4%
Chemical & Agricultural
Products -- 5.0%
8,500 Potash Corp. of Saskatchewan, Inc. . 757,299
----------
Gold Mining -- 1.6%
10,000 * Getchell Gold Corp. ................ 246,250
----------
Metals & Mining -- 8.4%
19,700 Alcan Aluminum Ltd. ................ 639,239
7,300 Inco Ltd. .......................... 127,882
20,000 Noranda, Inc. ...................... 412,602
20,000 * Repadre Capital Corp. .............. 78,325
----------
1,258,048
----------
Oil / Energy -- 5.9%
25,100 Canadian Occidental Petroleum Ltd. . 509,916
18,000 * Seven Seas Petroleum, Inc. ......... 382,500
----------
892,416
----------
Oil Field Services -- 0.5%
40,000 * Arakis Energy Corp. ................ 70,625
----------
Total Canada ....................... 3,224,638
==========
FRANCE -- 6.9%
Building, Construction &
Furnishings -- 2.4%
3,900 Lafarge SA ......................... 368,525
----------
Oil / Energy -- 4.5%
2,500 Societe Nationale Elf Aquitaine SA . 328,148
2,944 Total SA, Cl. B .................... 350,185
----------
678,333
----------
Total France ....................... 1,046,858
==========
MEXICO -- 3.6%
Metals & Mining -- 3.6%
130,000 * Industrias Penoles SA de CV ........ 536,557
==========
PERU -- 1.9%
Metals & Mining -- 1.9%
18,820 * Compania de Minas Buenaventura SA 146,537
8,700 * Compania de Minas Buenaventura
SA, ADR ............................ 134,850
----------
Total Peru ......................... 281,387
==========
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
SOUTH AFRICA -- 1.1%
Gold Mining -- 1.1%
50,000 Durban Roodepoort Deep Ltd., ADR ... $ 166,406
----------
UNITED KINGDOM -- 9.0%
Diversified Companies -- 2.5%
52,250 Lonrho Plc ......................... 376,688
----------
Metals & Mining -- 4.9%
100,000 Billiton Plc ....................... 286,031
31,539 Rio Tinto Plc ...................... 452,904
----------
738,935
----------
Oil / Energy -- 1.6%
2,500 British Petroleum Plc, ADR ......... 236,250
----------
Total United Kingdom ............... 1,351,873
==========
UNITED STATES -- 34.9%
Chemical & Agricultural
Products -- 2.8%
15,600 AGCO Corp. ......................... 417,300
----------
Gold Mining -- 2.2%
15,000 Homestake Mining Co. ............... 174,375
5,000 Newmont Mining Corp. ............... 160,938
----------
335,313
----------
Metals & Mining -- 5.9%
8,000 Aluminum Co. of America ............ 620,000
10,000 * Stillwater Mining Co. .............. 264,375
----------
884,375
----------
Oil Field Services -- 24.0%
11,000 * BJ Services Co., Inc. .............. 412,500
3,500 Camco International, Inc. .......... 237,562
22,000 * Diamond Offshore Drilling, Inc. .... 1,113,750
13,000 Halliburton Co. .................... 715,000
13,800 Schlumberger Ltd. .................. 1,143,675
----------
3,622,487
----------
Total United States ................ 5,259,475
==========
Total Common Stocks
(Cost -- $9,461,647)................ 12,689,615
==========
PREFERRED STOCKS -- 7.6%
BRAZIL -- 7.6%
Iron & Steel -- 5.0%
5,970,000 * Caemi Mineracao E Metalurgia SA .... 428,050
13,588 Compania Vale do Rio Doce
Navegacao SA ....................... 320,794
----------
748,844
----------
Oil / Energy -- 2.6%
1,580,000 Petroleo Brasileiro SA, ("Petrobras") 400,647
----------
Total Brazil ....................... 1,149,491
==========
Total Preferred Stocks
(Cost -- $790,166).................. 1,149,491
==========
</TABLE>
50
<PAGE>
EVERGREEN
Natural Resources Fund
Schedule of Investments (continued)
April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
<S> <C> <C> <C>
CONVERTIBLE DEBENTURES -- 0.0% (a)
BRAZIL -- 0.0%
Iron & Steel -- 0.0%
$ 23,588 Compania Vale do Rio Doce
Navegacao SA** ................... $ 2
-----------
Total Convertible Debentures
(Cost -- $0)...................... 2
-----------
Total Investments --
(Cost $10,251,813)....... 91.9% 13,839,108
Other Assets and
Liabilities -- Net ...... 8.1% 1,216,826
---- -----------
Net Assets .............. 100% $15,055,934
==== ===========
</TABLE>
* Non-income producing securities.
** Illiquid securities. The total market value of these illiquid securities at
April 30, 1998 was $84,142 (0.01% of the Fund's net assets).
(a) Less than one-tenth percent.
Summary of Portfolio Abbreviations:
ADR American Depository Receipts
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
<TABLE>
<CAPTION>
Unrealized
U.S. Value at In Exchange Appreciation
Exhange Date April 30, 1998 for U.S. $ (Depreciation)
- -------------------------------------------------------------------------------------------------
Forward Foreign Currency Exchange Contracts to Sell:
Contracts to Deliver
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
7/8/98 749,527 Australian Dollar $489,538 $495,100 $ 5,562
5/4/98 4,333,410 French Franc 721,079 712,000 (9,079)
8/5/98 3,652,101 French Franc 610,862 610,000 (862)
</TABLE>
See Combined Notes to Financial Statements.
51
<PAGE>
EVERGREEN
Precious Metals Fund
Schedule of Investments
April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- 105.5%
AUSTRALIA -- 8.5%
Gold Mining -- 5.5%
800,000 Delta Gold NL .................... $ 1,179,269
3,284,824 Normandy Mining Ltd. ............. 3,663,721
3,500,000 * Perilya Mines NL** ............... 1,232,753
1,020,629 Ross Mining NL ................... 605,792
599,600 Sons of Gwalia Ltd.** ............ 1,849,852
-----------
8,531,387
-----------
Metals & Mining -- 3.0%
2,899,200 * Acacia Resources Ltd. ............ 4,557,319
-----------
Total Australia .................. 13,088,706
===========
CANADA -- 47.4%
Gold Mining -- 37.5%
50,000 Cambior, Inc. .................... 393,750
511,000 Cambior, Inc. .................... 4,020,245
1,405,500 * Eldorado Gold Corp. .............. 1,179,482
597,000 Euro Nevada Mining Ltd. .......... 10,750,551
575,000 Franco Nevada Mining Ltd. ........ 14,073,919
179,700 * Getchell Gold Corp. .............. 4,425,112
100,000 * Goldcorp, Inc. Cl. A ............. 562,500
462,000 * Greenstone Resources Ltd. ........ 2,810,867
910,000 * Kinross Gold Corp. ............... 4,151,875
100,000 * Kinross Gold Corp. ............... 458,058
1,258,000 * Lone Star Exploration NL ......... 52,785
546,500 * Meridian Gold, Inc. .............. 2,151,844
337,100 * Orvana Minerals Corp. ............ 447,911
194,300 * Philex Gold, Inc. ................ 203,818
100,000 Placer Dome, Inc. ................ 1,475,576
349,800 Prime Resources Group, Inc. ...... 2,654,170
4,000 * Rio Narcea Gold Mine, Inc. ....... 13,287
6,000,000 * Santa Cruz Gold, Inc. ............ 965,069
1,260,000 * TVX Gold, Inc. ................... 5,066,611
1,000,000 * Viceroy Resource Corp. ........... 1,958,110
-----------
57,815,540
-----------
Metals & Mining -- 9.9%
100,100 * Aber Resources Ltd. .............. 1,137,540
1,640,000 * Ariel Resources Ltd. ............. 344,068
125,000 Barrick Gold Corp. ............... 2,804,688
229,700 Barrick Gold Corp. ............... 5,148,351
222,700 * Bema Gold Corp. .................. 552,876
600,000 * Dayton Mining Corp. .............. 900,000
800,000 * Geomaque Exploration Ltd. ........ 1,454,596
501,500 * Golden Knight Resources, Inc. .... 519,053
300,000 * Repadre Capital Corp. ............ 1,174,866
200,000 * SouthernEra Resources Ltd. ....... 1,293,752
-----------
15,329,790
-----------
Total Canada ..................... 73,145,330
===========
MEXICO -- 0.9%
Metals & Mining -- 0.9%
350,000 * Industrias Penoles SA de CV ...... 1,444,576
===========
PAPUA NEW GUINEA -- 1.2%
Gold Mining -- 1.2%
1,100,000 * Lihir Gold Ltd. .................. 1,915,659
===========
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C>
COMMON STOCKS -- continued
PERU -- 1.0%
Metals & Mining -- 1.0%
100,000 * Compania de Minas Buenaventura
SA, ADR .......................... $ 1,550,000
===========
SOUTH AFRICA -- 24.7%
Gold Mining -- 7.4%
2,932,916 * Avgold Ltd.** .................... 2,605,618
200,000 * Durban Roodepoort ................ 732,093
200,000 * Durban Roodepoort Deep Ltd., ADR . 665,625
358,000 Free State Consolidated Gold Mines
Ltd. ............................. 2,195,884
288,585 Western Areas Gold Mining Ltd., ADR 1,769,228
45,900 Western Deep Levels Ltd. ......... 1,284,183
75,000 Western Deep Levels Ltd., ADR .... 2,104,688
-----------
11,357,319
-----------
Metals & Mining -- 17.3%
157,800 Anglo-American Platinum Holdings . 2,522,802
629,520 Ashanti Goldfields Ltd., GDR ..... 6,216,510
150,000 Avmin Ltd., ADR .................. 780,000
155,200 De Beers Centenary ............... 4,022,794
751,700 East Rand Gold & Uranium Ltd., ADR . 1,100,038
300,000 Elandsrand Gold Mining Ltd., ADR** . 1,334,910
1,800,000 Gencor Ltd. ...................... 4,291,650
500,200 * Harmony Gold Mining Ltd.** ....... 2,969,133
67,000 * Harmony Gold Mining Ltd., ADR** .. 397,504
175,000 Impala Platinum Holdings Ltd. .... 2,274,931
300,000 * Randgold & Exploration Co. Ltd. .. 433,320
70,000 * Randgold Resources, Inc., GDR** .. 437,500
-----------
26,781,092
-----------
Total South Africa ............... 38,138,411
===========
UNITED STATES -- 21.8%
Gold Mining -- 12.7%
538,000 Anglogold Ltd. ................... 2,740,437
100,000 Battle Mountain Gold Co. ......... 718,750
523,000 Homestake Mining Co. ............. 6,079,875
312,650 Newmont Mining Corp. ............. 10,063,422
-----------
19,602,484
-----------
Metals & Mining -- 9.1%
1,999,000 * Canyon Resources Corp. ........... 2,248,875
100,000 * Hecla Mining Co. ................. 637,500
170,000 Pioneer Group, Inc. .............. 5,312,500
220,900 * Stillwater Mining Co. ............ 5,840,044
-----------
14,038,919
-----------
Total United States .............. 33,641,403
===========
Total Common Stocks
(Cost: $204,751,542).............. 162,924,085
===========
</TABLE>
52
<PAGE>
EVERGREEN
Precious Metals Fund
Schedule of Investments (continued)
April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C> <C>
WARRANTS -- 0.1%
CANADA -- 0.1%
Metals & Mining -- 0.1%
162,500 * Geomaque Exploration Ltd.,
Expire 3/18/99 .................... $ 7,955
429,000 * Vengold, Inc., Ser. B, Expire 6/13/00 114,004
------------
Total Canada ...................... 121,959
------------
</TABLE>
<TABLE>
<CAPTION>
Shares Value
<S> <C> <C> <C>
WARRANTS -- continued
UNITED STATES -- 0.0% (a)
Metals & Mining -- 0.0%
227,500 * Atlas Corp., Expire 12/15/99 ...... $ 1,137
75,000 * Canyon Resources Corp. ............ 0
------------
Total United States ............... 1,137
============
Total Warrants
(Cost: $304,340)................... 123,096
============
Total Investments --
(Cost $205,055,882)...... 105.6% 163,047,181
Investment In
Wholly-Owned
Unconsolidated
Foreign Subsidiary
Precious Metals (Bermuda) Ltd. .... 828,788
Other Assets and
Liabilities -- Net ...... ( 5.6%) (9,473,391)
----- ------------
Net Assets .............. 100% $154,402,578
===== ============
</TABLE>
* Non-income producing securities.
** Illiquid securities. The total market value of these illiquid securities at
April 30, 1998 was $10,827,270 (7.01% of the Fund's net assets).
(a) Less than one-tenth percent.
Summary of Portfolio Abbreviations:
ADR American Depository Receipts
GDR Global Depository Receipts
See Combined Notes to Financial Statements.
53
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Assets and Liabilities
April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Global International
Opportunities Growth
Fund Fund
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets
Investments at value (identified cost -- $229,953,069,
$136,387,902, $79,393,095, $10,251,813 and
$205,055,882, respectively)..................................... $305,051,221 $ 181,460,778
Investment in wholly-owned unconsolidated foreign
subsidiary, at fair value ...................................... 0 0
Foreign currency, at value (identified cost -- $99,919, $899,
$825,364, $50, and $0, respectively)............................ 100,019 920
Cash ............................................................ 981 790
Receivable for investments sold ................................. 10,100,300 650,878
Receivable for Fund shares sold ................................. 2,278,649 1,458,679
Dividends and interest receivable ............................... 383,678 636,094
Unrealized appreciation on open forward foreign currency
exchange contracts ............................................. 451,756 653,860
Foreign tax reclaim receivable .................................. 136,572 98,827
Unamortized organization expenses ............................... 0 0
Prepaid expenses and other assets ............................... 50,553 106,721
- -------------------------------------------------------------------------------------------------
Total assets .................................................. 318,553,729 185,067,547
- -------------------------------------------------------------------------------------------------
Liabilities
Payable for investments purchased ............................... 7,576,810 109,744
Payable for Fund shares repurchased ............................. 1,510,090 332,534
Advisory fee payable ............................................ 231,613 104,371
Distribution fee payable ........................................ 159,338 64,331
Due to related parties .......................................... 4,000 2,678
Unrealized depreciation on open forward foreign currency
exchange contracts ............................................. 383,348 768,624
Foreign taxes payable ........................................... 49,028 71,669
Distributions payable ........................................... 42,629 2,493
Due to custodian bank ........................................... 0 0
Accrued expenses and other liabilities .......................... 221,132 159,869
- -------------------------------------------------------------------------------------------------
Total liabilities ............................................. 10,177,988 1,616,313
- -------------------------------------------------------------------------------------------------
Net assets ....................................................... $308,375,741 $ 183,451,234
=================================================================================================
Net assets represented by
Paid-in capital ................................................. $214,429,866 $ 135,457,764
Undistributed (distributions in excess of) net investment
income (loss) .................................................. (1,910,129) 1,021,158
Accumulated net realized gain (loss) on investments and
foreign currency related transactions .......................... 20,696,032 2,016,787
Net unrealized appreciation (depreciation) of investments
and foreign currency related transactions ...................... 75,159,972 44,955,525
- -------------------------------------------------------------------------------------------------
Total net assets .............................................. $308,375,741 $ 183,451,234
=================================================================================================
Net assets consists of
Class A ......................................................... $ 81,969,660 $ 105,133,890
Class B ......................................................... 189,677,201 52,818,828
Class C ......................................................... 36,707,193 233,751
Class Y ......................................................... 21,687 25,264,765
- -------------------------------------------------------------------------------------------------
$308,375,741 $ 183,451,234
=================================================================================================
Shares outstanding
Class A ......................................................... 3,258,000 12,626,241
Class B ......................................................... 7,865,103 6,356,189
Class C ......................................................... 1,518,733 28,125
Class Y ......................................................... 844 3,033,755
=================================================================================================
Net asset value per share
Class A ......................................................... $ 25.16 $ 8.33
=================================================================================================
Class A -- Offering price (based on sales charge of 4.75%) ...... $ 26.41 $ 8.75
=================================================================================================
Class B ......................................................... $ 24.12 $ 8.31
=================================================================================================
Class C ......................................................... $ 24.17 $ 8.31
=================================================================================================
Class Y ......................................................... $ 25.71 $ 8.33
=================================================================================================
<CAPTION>
Latin Natural Precious
America Resources Metals
Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets
Investments at value (identified cost -- $229,953,069,
$136,387,902, $79,393,095, $10,251,813 and
$205,055,882, respectively)..................................... $ 90,556,792 $13,839,108 $ 163,047,181
Investment in wholly-owned unconsolidated foreign
subsidiary, at fair value ...................................... 0 0 828,788
Foreign currency, at value (identified cost -- $99,919, $899,
$825,364, $50, and $0, respectively)............................ 828,026 42 0
Cash ............................................................ 766 268,470 1,642,824
Receivable for investments sold ................................. 1,114,358 0 0
Receivable for Fund shares sold ................................. 127,995 993,112 95,812
Dividends and interest receivable ............................... 1,023,087 65,722 467,451
Unrealized appreciation on open forward foreign currency
exchange contracts ............................................. 1,391 5,562 0
Foreign tax reclaim receivable .................................. 649 10,501 0
Unamortized organization expenses ............................... 6,634 5,553 0
Prepaid expenses and other assets ............................... 49,358 25,995 74,483
- ---------------------------------------------------------------------------------------------------------------
Total assets .................................................. 93,709,056 15,214,065 166,156,539
- ---------------------------------------------------------------------------------------------------------------
Liabilities
Payable for investments purchased ............................... 1,526,491 0 0
Payable for Fund shares repurchased ............................. 362,453 92,197 4,608,839
Advisory fee payable ............................................ 57,443 11,881 90,962
Distribution fee payable ........................................ 66,003 8,799 55,485
Due to related parties .......................................... 2,997 10,863 1,700
Unrealized depreciation on open forward foreign currency
exchange contracts ............................................. 2,618 9,941 0
Foreign taxes payable ........................................... 2,224 613 4,721
Distributions payable ........................................... 17,142 0 8,741
Due to custodian bank ........................................... 0 0 6,922,000
Accrued expenses and other liabilities .......................... 34,448 23,837 61,513
- ---------------------------------------------------------------------------------------------------------------
Total liabilities ............................................. 2,071,819 158,131 11,753,961
- ---------------------------------------------------------------------------------------------------------------
Net assets ....................................................... $ 91,637,237 $15,055,934 $ 154,402,578
===============================================================================================================
Net assets represented by
Paid-in capital ................................................. $ 86,815,376 $11,758,453 $ 206,977,044
Undistributed (distributions in excess of) net investment
income (loss) .................................................. 486,008 (159,739) (220,548)
Accumulated net realized gain (loss) on investments and
foreign currency related transactions .......................... (6,825,611) (125,238) (10,342,763)
Net unrealized appreciation (depreciation) of investments
and foreign currency related transactions ...................... 11,161,464 3,582,458 (42,011,155)
- ---------------------------------------------------------------------------------------------------------------
Total net assets .............................................. $ 91,637,237 $15,055,934 $ 154,402,578
===============================================================================================================
Net assets consists of
Class A ......................................................... $ 13,070,392 $ 3,879,510 $ 118,143,458
Class B ......................................................... 69,358,714 9,844,983 35,472,662
Class C ......................................................... 9,206,843 1,331,441 786,458
Class Y ......................................................... 1,288 0 0
- ---------------------------------------------------------------------------------------------------------------
$ 91,637,237 $15,055,934 $ 154,402,578
===============================================================================================================
Shares outstanding
Class A ......................................................... 1,106,770 359,168 7,559,977
Class B ......................................................... 6,034,932 938,430 2,274,357
Class C ......................................................... 801,466 127,046 50,428
Class Y ......................................................... 109 0 0
===============================================================================================================
Net asset value per share
Class A ......................................................... $ 11.81 $ 10.80 $ 15.63
===============================================================================================================
Class A -- Offering price (based on sales charge of 4.75%) ...... $ 12.40 $ 11.34 $ 16.41
===============================================================================================================
Class B ......................................................... $ 11.49 $ 10.49 $ 15.60
===============================================================================================================
Class C ......................................................... $ 11.49 $ 10.48 $ 15.60
===============================================================================================================
Class Y ......................................................... $ 11.82 -- --
===============================================================================================================
</TABLE>
See Combined Notes to Financial Statements.
54
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Operations
Six Months Ended April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Global International
Opportunities Growth
Fund Fund
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Investment income
Dividends (net of foreign withholding taxes of $101,901,
$138,671, 29,319, $6,532, and $52,224, respectively)........... $ 876,073 $ 1,173,321
Interest ....................................................... 499,946 329,088
- -----------------------------------------------------------------------------------------------
Total income .................................................... 1,376,019 1,502,409
Expenses
Advisory fee ................................................... 1,552,411 556,665
Distribution Plan expenses ..................................... 1,266,047 521,108
Transfer agent fees ............................................ 547,631 248,030
Trustees fees .................................................. 3,265 2,045
Custodian fees ................................................. 79,999 22,929
Administrative service fees .................................... 15,062 13,235
Professional fees .............................................. 16,764 10,716
Printing ....................................................... 299,884 67,918
Registration fees .............................................. 50,059 40,246
Amortization of organization expenses .......................... 0 0
Other .......................................................... 5,981 88,141
- -----------------------------------------------------------------------------------------------
Total expenses ................................................ 3,837,103 1,571,033
Less: Indirectly paid expenses ................................. (10,549) (2,235)
- -----------------------------------------------------------------------------------------------
Net expenses .................................................. 3,826,554 1,568,798
- -----------------------------------------------------------------------------------------------
Net investment income (loss) ................................... (2,450,535) (66,389)
- -----------------------------------------------------------------------------------------------
Equity in earnings of wholly-owned unconsolidated foreign
subsidiary ..................................................... 0 0
===============================================================================================
Net realized and unrealized gain (loss) on investments and
foreign currency related transactions
Net realized gain (loss) from
Investments ................................................... 19,271,896 1,484,806
Foreign currency related transactions ......................... 1,445,561 2,217,854
- -----------------------------------------------------------------------------------------------
Net realized gain (loss) on investments and foreign currency
related transactions .......................................... 20,717,457 3,702,660
- -----------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of
investments and foreign currency related transactions ......... 20,878,672 26,387,704
- -----------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency related transactions ......................... 41,596,129 30,090,364
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations .................................................... $ 39,145,594 $30,023,975
===============================================================================================
<CAPTION>
Latin Natural Precious
America Resources Metals
Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Investment income
Dividends (net of foreign withholding taxes of $101,901,
$138,671, 29,319, $6,532, and $52,224, respectively)........... $ 1,575,056 $ 182,680 $ 1,004,627
Interest ....................................................... 62,957 8,348 74,916
- -------------------------------------------------------------------------------------------------------------
Total income .................................................... 1,638,013 191,028 1,079,543
Expenses
Advisory fee ................................................... 351,933 83,659 411,986
Distribution Plan expenses ..................................... 418,983 70,830 366,295
Transfer agent fees ............................................ 170,728 26,994 308,464
Trustees fees .................................................. 1,871 506 1,342
Custodian fees ................................................. 95,615 12,898 47,396
Administrative service fees .................................... 7,222 1,468 9,098
Professional fees .............................................. 10,678 13,015 24,261
Printing ....................................................... 49,475 36,295 76,605
Registration fees .............................................. 37,657 44,171 9,818
Amortization of organization expenses .......................... 6,526 7,068 0
Other .......................................................... 4,456 6,531 50,788
- -------------------------------------------------------------------------------------------------------------
Total expenses ................................................ 1,155,144 303,435 1,306,053
Less: Indirectly paid expenses ................................. (5,899) (604) (276)
- -------------------------------------------------------------------------------------------------------------
Net expenses .................................................. 1,149,245 302,831 1,305,777
- -------------------------------------------------------------------------------------------------------------
Net investment income (loss) ................................... 488,768 (111,803) (226,234)
- -------------------------------------------------------------------------------------------------------------
Equity in earnings of wholly-owned unconsolidated foreign
subsidiary ..................................................... 0 0 8,443
=============================================================================================================
Net realized and unrealized gain (loss) on investments and
foreign currency related transactions
Net realized gain (loss) from
Investments ................................................... (5,572,768) (340,839) (9,891,961)
Foreign currency related transactions ......................... (413,799) 221,088 (11,835)
- -------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments and foreign currency
related transactions .......................................... (5,986,567) (119,751) (9,903,796)
- -------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of
investments and foreign currency related transactions ......... 17,107,785 (740,141) 22,060,759
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments and
foreign currency related transactions ......................... 11,121,218 (859,892) 12,156,963
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations .................................................... $ 11,609,986 $ (971,695) $ 11,939,172
=============================================================================================================
</TABLE>
See Combined Notes to Financial Statements.
55
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Changes in Net Assets
Six Months Ended April 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
Global International
Opportunities Growth
Fund Fund
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment income (loss) ................................ $ (2,450,535) $ (66,389)
Equity in earnings of wholly-owned unconsolidated foreign
subsidiary ................................................. 0 0
Net realized gain (loss) on investments and foreign
currency related transactions .............................. 20,717,457 3,702,660
Net change in unrealized appreciation (depreciation) of
investments and foreign currency related transactions ...... 20,878,672 26,387,704
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations ................................................. 39,145,594 30,023,975
- -------------------------------------------------------------------------------------------------
Distributions to shareholders
From net investment income:
Class A .................................................... 0 0
Class B .................................................... 0 (5,718,223)
Class C .................................................... 0 0
In excess of net investment income:
Class B .................................................... 0 0
Class C .................................................... 0 0
From net realized gain on investments and foreign
currency related transactions:
Class A .................................................... (6,152,515) 0
Class B .................................................... (14,270,760) (26,737,026)
Class C .................................................... (2,859,903) 0
Class Y .................................................... (1) 0
- -------------------------------------------------------------------------------------------------
Total distributions to shareholders ........................ (23,283,179) (32,455,249)
- -------------------------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares sold ................................... 29,146,699 60,391,745
Payment for shares redeemed ................................. (115,559,613) (54,725,416)
Net asset value of shares issued in reinvestment of
distributions .............................................. 20,555,694 28,410,069
Shares issued in acquisition of Blanchard Precious Metals
Fund ....................................................... 0 0
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions ................................ (65,857,220) 34,076,398
- -------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ................... (49,994,805) 31,645,124
Net assets
Beginning of period ......................................... 358,370,546 151,806,110
- -------------------------------------------------------------------------------------------------
End of period ............................................... $ 308,375,741 $ 183,451,234
=================================================================================================
Undistributed (distributions in excess of) net investment
income (loss) ............................................... $ (1,910,129) $ 1,021,158
=================================================================================================
<CAPTION>
Latin Natural Precious
America Resources Metals
Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations
Net investment income (loss) ................................ $ 488,768 $ (111,803) $ (226,234)
Equity in earnings of wholly-owned unconsolidated foreign
subsidiary ................................................. 0 0 8,443
Net realized gain (loss) on investments and foreign
currency related transactions .............................. (5,986,567) (119,751) (9,903,796)
Net change in unrealized appreciation (depreciation) of
investments and foreign currency related transactions ...... 17,107,785 (740,141) 22,060,759
- -----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations ................................................. 11,609,986 (971,695) 11,939,172
- -----------------------------------------------------------------------------------------------------------------
Distributions to shareholders
From net investment income:
Class A .................................................... 0 (39,137) 0
Class B .................................................... 0 (20,850) 0
Class C .................................................... 0 (2,848) 0
In excess of net investment income:
Class B .................................................... 0 (135,522) 0
Class C .................................................... 0 (24,217) 0
From net realized gain on investments and foreign
currency related transactions:
Class A .................................................... (2,915,764) (376,317) 0
Class B .................................................... (16,639,668) (1,503,573) (5,647,344)
Class C .................................................... (2,385,233) (260,243) 0
Class Y .................................................... 0 0 0
- -----------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ........................ (21,940,665) (2,362,707) (5,647,344)
- -----------------------------------------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares sold ................................... 12,922,303 16,033,889 112,171,009
Payment for shares redeemed ................................. (30,432,722) (21,742,072) (119,417,487)
Net asset value of shares issued in reinvestment of
distributions .............................................. 19,625,500 2,160,001 4,759,767
Shares issued in acquisition of Blanchard Precious Metals
Fund ....................................................... 0 0 39,424,759
- -----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital share transactions ................................ 2,115,081 (3,548,182) 36,938,048
- -----------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ................... (8,215,598) (6,882,584) 43,229,876
Net assets
Beginning of period ......................................... 99,852,835 21,938,518 111,172,702
- --------------------------------------------------------------- -------------------------------------------------
End of period ............................................... $ 91,637,237 $ 15,055,934 $ 154,402,578
=================================================================================================================
Undistributed (distributions in excess of) net investment
income (loss) ............................................... $ 486,008 $ (159,739) $ (220,548)
=================================================================================================================
</TABLE>
See Combined Notes to Financial Statements.
56
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Changes in Net Assets
Period Ended October 31, 1997
<TABLE>
<CAPTION>
Global International
Opportunities Growth
Fund*** Fund
- ----------------------------------------------------------------------------- -----------------
<S> <C> <C>
Operations
Net investment loss ......................................... $ (648,601) $ (786,796)
Equity in earnings of wholly-owned unconsolidated foreign
subsidiary ................................................. 0 0
Net realized gain on investments and foreign currency
related transactions ....................................... 8,871,051 33,079,318
Net change in unrealized depreciation of investments and
foreign currency related transactions ...................... (29,437,805) (8,385,742)
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations ................................................ (21,215,355) 23,906,780
- -----------------------------------------------------------------------------------------------
Distributions to shareholders
From net investment income:
Class A .................................................... 0 0
Class B .................................................... 0 (1,828,737)
In excess of net investment income:
Class B .................................................... 0 0
Class C .................................................... 0 0
From net realized gain on investments and foreign
currency related transactions:
Class B .................................................... 0 (2,926,339)
- -----------------------------------------------------------------------------------------------
Total distributions to shareholders ........................ 0 (4,755,076)
- -----------------------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares sold ................................... 5,938,720 159,178,048
Payment for shares redeemed ................................. (28,290,639) (178,656,491)
Net asset value of shares issued in reinvestment of
distributions .............................................. 0 4,222,295
- -----------------------------------------------------------------------------------------------
Net decrease in net assets resulting from capital share
transactions .............................................. (22,351,919) (15,256,148)
- -----------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ................... (43,567,274) 3,895,556
Net assets
Beginning of year ........................................... 401,937,820 147,910,554
- -----------------------------------------------------------------------------------------------
End of year ................................................. $ 358,370,546 $ 151,806,110
===============================================================================================
Undistributed (distributions in excess of) net investment
income (loss) ............................................... $ 540,406 $ 6,805,770
===============================================================================================
<CAPTION>
Latin Natural Precious
America Resources Metals
Fund Fund** Fund*
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Operations
Net investment loss ......................................... $ (483,675) $ (102,070) $ (1,019,679)
Equity in earnings of wholly-owned unconsolidated foreign
subsidiary ................................................. 0 0 13,054
Net realized gain on investments and foreign currency
related transactions ....................................... 36,087,300 2,079,956 3,388,158
Net change in unrealized depreciation of investments and
foreign currency related transactions ...................... (17,271,713) (835,993) (61,446,526)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations ................................................ 18,331,912 1,141,893 (59,064,993)
- ---------------------------------------------------------------------------------------------------------------
Distributions to shareholders
From net investment income:
Class A .................................................... (91,845) 0 0
Class B .................................................... (139,227) 0 0
In excess of net investment income:
Class B .................................................... (430,575) 0 0
Class C .................................................... (62,177) 0 0
From net realized gain on investments and foreign
currency related transactions:
Class B .................................................... 0 0 0
- ---------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ........................ (723,824) 0 0
- ---------------------------------------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares sold ................................... 35,265,301 1,626,365 83,990,548
Payment for shares redeemed ................................. (52,499,496) (7,066,862) (103,860,464)
Net asset value of shares issued in reinvestment of
distributions .............................................. 639,781 0 0
- ---------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from capital share
transactions .............................................. (16,594,414) (5,440,497) (19,869,916)
- ---------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ................... 1,013,674 (4,298,604) (78,934,909)
Net assets
Beginning of year ........................................... 98,839,161 26,237,122 190,107,611
- ---------------------------------------------------------------------------------------------------------------
End of year ................................................. $ 99,852,835 $ 21,938,518 $ 111,172,702
===============================================================================================================
Undistributed (distributions in excess of) net investment
income (loss) ............................................... $ (2,760) $ 174,638 $ (2,757)
===============================================================================================================
</TABLE>
* The Fund changed its fiscal year end to October 31. The Statements of
Changes are for the eight-month period ended October 31, 1997.
** The Fund changed its fiscal year end to October 31. The Statements of
Changes are for the seven-month period ended October 31, 1997.
*** The Fund changed its fiscal year end to October 31. The Statements of
Changes are for the 1-month period ended October 31, 1997.
See Combined Notes to Financial Statements.
57
<PAGE>
EVERGREEN
International and Global Growth Funds
Statements of Changes in Net Assets
Prior Periods
<TABLE>
<CAPTION>
Global
Opportunities
Fund***
- -----------------------------------------------------------------------------------------------------------
<S> <C>
Operations
Net investment loss ..................................................................... $ (6,655,024)
Equity in earnings of wholly-owned unconsolidated foreign subsidiary .................... 0
Net realized gain on investments and foreign currency related transactions .............. 26,795,363
Net change in unrealized appreciation (depreciation) of investments and foreign currency
related transactions ................................................................... (6,946,269)
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations ........................ 13,194,070
- -----------------------------------------------------------------------------------------------------------
Distributions to shareholders
From net realized gain on investments and foreign currency related transactions:
Class A ................................................................................ (11,550,719)
Class B ................................................................................ (19,127,005)
Class C ................................................................................ (6,057,525)
- -----------------------------------------------------------------------------------------------------------
Total distributions to shareholders .................................................... (36,735,249)
- -----------------------------------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares sold ............................................................... 72,496,510
Payment for shares redeemed ............................................................. (437,692,552)
Net asset value of shares issued in reinvestment of distributions ....................... 29,860,344
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital share transactions ........ (335,335,698)
- -----------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............................................... (358,876,877)
Net assets
Beginning of year ....................................................................... 760,814,697
- -----------------------------------------------------------------------------------------------------------
End of year ............................................................................. $ 401,937,820
===========================================================================================================
Undistributed net investment income (loss) ............................................... $ (966,557)
===========================================================================================================
<CAPTION>
Natural Precious
Resources Metals
Fund** Fund*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Operations
Net investment loss ..................................................................... $ (261,955) $ (2,063,632)
Equity in earnings of wholly-owned unconsolidated foreign subsidiary .................... 0 69,764
Net realized gain on investments and foreign currency related transactions .............. 1,096,497 14,024,717
Net change in unrealized appreciation (depreciation) of investments and foreign currency
related transactions ................................................................... 1,919,418 (17,875,249)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations ........................ 2,753,960 (5,844,400)
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders
From net realized gain on investments and foreign currency related transactions:
Class A ................................................................................ 0 0
Class B ................................................................................ 0 (7,301,560)
Class C ................................................................................ 0 0
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders .................................................... 0 (7,301,560)
- ---------------------------------------------------------------------------------------------------------------------------
Capital share transactions
Proceeds from shares sold ............................................................... 9,241,182 618,026,217
Payment for shares redeemed ............................................................. (7,515,475) (638,015,009)
Net asset value of shares issued in reinvestment of distributions ....................... 0 5,971,990
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from capital share transactions ........ 1,725,707 (14,016,802)
- ---------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............................................... 4,479,667 (27,162,762)
Net assets
Beginning of year ....................................................................... 21,757,455 217,270,373
- ---------------------------------------------------------------------------------------------------------------------------
End of year ............................................................................. $ 26,237,122 $ 190,107,611
===========================================================================================================================
Undistributed net investment income (loss) ............................................... $ (33,055) $ 4,722,048
===========================================================================================================================
</TABLE>
* For the year ended February 28, 1997.
** For the year ended March 31, 1997.
*** For the year ended September 30, 1997.
See Combined Notes to Financial Statements.
58
<PAGE>
Combined Notes to Financial Statements
1. ORGANIZATION
The Evergreen International & Global Growth Funds consist of the Evergreen
Global Opportunities Fund ("Global Opportunities"), Evergreen International
Growth Fund ("International Growth"), Evergreen Latin American Fund ("Latin
America"), Evergreen Natural Resources Fund ("Natural Resources") and Evergreen
Precious Metals Fund ("Precious Metals") each of which are registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as diversified,
open-end management investment companies. Each Fund is a series of the
Evergreen International Trust, a Delaware business trust organized on September
17, 1997. Formerly, each Fund was organized as either a Delaware business trust
or a series of a Massachusetts business trust. Global Opportunities,
International, Latin America, Natural Resources and Precious Metals are
collectively referred to herein as the "Funds".
The Funds offer Class A, Class B, Class C and Class Y Shares with the exception
of Natural Resources and Precious Metals which do not offer class Y shares.
Class A shares are sold with a maximum front-end sales charge of 4.75%. Class B
and Class C shares are sold without a front end sales charge, but pay a higher
ongoing distribution fee than Class A. Class B shares are sold subject to a
contingent deferred sales charge that is payable upon redemption and decreases
depending on how long the shares have been held. Class B shares purchased after
January 1, 1997 will automatically convert to Class A shares after seven years.
Class B shares purchased prior to January 1, 1997 retain their existing
conversion rights. Class C shares are sold subject to a contingent deferred
sales charge payable on shares redeemed within one year after the month of
purchase. Class Y shares are sold at net asset value and are not subject to
contingent deferred sales charges or distribution fees. Class Y shares are sold
only to investment advisory clients of First Union Corporation ("First Union")
and its affiliates, certain institutional investors or Class Y shareholders of
record of certain other funds managed by First Union and its affiliates as of
December 30, 1994.
2. ACQUISITION INFORMATION
Effective December 1, 1997, Signet Banking Corporation ("Signet") merged with
First Union Corporation ("First Union"). Effective at the close of business on
February 27, 1998, Precious Metals acquired substantially all of the net assets
of Blanchard Precious Metals Fund, an open-end management investment company
managed by a subsidiary of Signet and registered under the 1940 Act, valued at
$39,424,759. The net assets were exchanged through a non-taxable transaction
for 3,176,709 Class A Shares of Precious Metals valued at $3.83 per share. The
acquired net assets consisted primarily of portfolio securities with unrealized
depreciation of $69,315,421. The aggregate net assets of Precious Metals after
the acquisition were $144,108,204.
3. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles, which
require management to make estimates and assumptions that affect amounts
reported herein. Actual results could differ from these estimates.
A. Valuation of Securities
The Funds value investments traded on an established exchange on the basis of
the last sales price on the exchange where primarily traded. The Funds value
securities traded in the over-the counter market at the mean between the bid
and asked prices. Securities for which market quotations are not available from
an independent pricing service, are valued at fair value as determined in good
faith according to procedures approved by the Board of Trustees. Short-term
investments with remaining maturities of 60 days or less are carried at
amortized cost, which approximates market value.
B. Repurchase Agreements
Each Fund may invest in repurchase agreements. Securities pledged as collateral
for repurchase agreements are held by the custodian on the Fund's behalf. Each
Fund monitors the adequacy of the collateral daily and will require the seller
to provide additional collateral in the event the market value of the
securities pledged falls below the carrying value of the repurchase agreement,
including accrued interest. Each Fund will only enter into repurchase
agreements with banks and other financial institutions which are deemed by the
investment adviser to be creditworthy pursuant to guidelines established by the
Board of Trustees.
Pursuant to an exemptive order issued by the Securities and Exchange
Commission, the Funds, along with certain other funds managed by Keystone
Investment Management Company ("Keystone"), may transfer uninvested cash
balances into a joint trading account. These balances are invested in one or
more repurchase agreements that are fully collateralized by U.S. Treasury
and/or federal agency obligations.
59
<PAGE>
Combined Notes to Financial Statements (continued)
C. Reverse Repurchase Agreements
To obtain short-term financing, the Funds may enter into reverse repurchase
agreements with qualified third-party broker-dealers. Interest on the value of
reverse repurchase agreements is based upon competitive market rates at the
time of issuance. At the time a Fund enters into a reverse repurchase
agreement, it will establish and maintain a segregated account with the
custodian containing qualifying assets having a value not less than the
repurchase price, including accrued interest. If the counterparty to the
transaction is rendered insolvent, the ultimate realization of the securities
to be repurchased by the Fund may be delayed or limited.
D. Foreign Currency
The books and records of the Funds are maintained in United States (U.S.)
dollars. Foreign currency amounts are translated into U.S. dollars as follows:
market value of investments, assets and liabilities at the daily rate of
exchange; purchases and sales of investments, income and expenses at the rate
of exchange prevailing on the respective dates of such transactions. Net
unrealized foreign exchange gain (loss) resulting from changes in foreign
currency exchange rates is a component of net unrealized appreciation
(depreciation) on investments and foreign currency related transactions. Net
realized foreign currency gains and losses resulting from changes in exchange
rates include: foreign currency gains and losses between trade date and
settlement date on investment securities transactions, foreign currency related
transactions and the difference between the amounts of interest and dividends
recorded on the books of the Fund and the amount actually received. Such gains
and losses are included in realized gain (loss) on foreign currency related
transactions. The portion of foreign currency gains and losses related to
fluctuations in exchange rates between the initial purchase trade date and
subsequent sale trade date is included in realized gain (loss) on foreign
currency related transactions.
E. Forward Foreign Currency Exchange Contracts
The Funds may enter into forward foreign currency exchange contracts ("forward
contracts") to settle portfolio purchases and sales of securities denominated
in a foreign currency and to hedge certain foreign currency assets or
liabilities. Forward contracts are recorded at the forward rate and
marked-to-market daily. Realized gains and losses arising from such
transactions are included in net realized gain (loss) on foreign currency
related transactions. The Fund bears the risk of an unfavorable change in the
foreign currency exchange rate underlying the forward contract and is subject
to the credit risk that the other party will not fulfill their obligations
under the contract. Forward contracts involve elements of market risk in excess
of the amount reflected in the statements of assets and liabilities.
F. Security Transactions and Investment Income
Securities transactions are accounted for no later than one business day after
the trade date. Realized gains and losses are computed on the identified cost
basis. Interest income is recorded on the accrual basis and includes accretion
of discounts and amortization of premiums. Dividend income is recorded on the
ex-dividend date, or in the case of some foreign securities, on the date
thereafter when the Fund is made aware of the dividend. Foreign income may be
subject to foreign withholding taxes which are accrued as applicable. Capital
gains realized on some foreign securities may be subject to foreign taxes and
are accrued as applicable.
G. Federal Taxes
The Funds have qualified and intend to continue to qualify as regulated
investment companies under the Internal Revenue Code of 1986, as amended (the
"Code"). Thus, the Funds will not incur any federal income tax liability since
they are expected to distribute all of their net investment company taxable
income and net capital gains, if any, to their shareholders. The Funds also
intend to avoid excise tax liability by making the required distributions under
the Code. Accordingly, no provision for federal taxes is required. To the
extent that realized capital gains can be offset by capital loss carryforwards,
it is each Fund's policy not to distribute such gains.
H. Distributions
Distributions from net investment income for the Funds are declared and paid
annually. Distributions from net realized capital gains, if any, are paid at
least annually. Distributions to shareholders are recorded at the close of
business on the ex-dividend date.
Income and capital gains distributions to shareholders are determined in
accordance with income tax regulations, which may differ from generally
accepted accounting principles. The significant differences between financial
statement amounts available for distributions and distributions made in
accordance with income tax regulations are primarily due to differing treatment
for net operating losses.
I. Class Allocations
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the
relative net assets of each class. Currently, class specific expenses are
limited to expenses incurred under the Distribution Plans for each class.
60
<PAGE>
Combined Notes to Financial Statements (continued)
J. Organization Expenses
Organization expenses for Latin America and Natural Resources are being
amortized to operations over a five-year period on a straight-line basis. In
the event any of the initial shares of these Funds are redeemed by any holder
during the five-year amortization period, redemption proceeds will be reduced
by any unamortized organization expenses in the same proportion as the number
of initial shares being redeemed bears to the number of initial shares
outstanding at the time of the redemption.
4. INVESTMENT IN FOREIGN SUBISDIARY
Precious Metals (Bermuda) Ltd., Precious Metals' wholly-owned foreign
subsidiary, was acquired in May 1975 and has as its primary objective the
acquisition of precious metals. The Fund accounts for its investments in the
subsidiary under the equity method of accounting. At April 30, 1998, the fair
value of the Fund's investment in the foreign subsidiary was determined as
follows:
<TABLE>
<S> <C>
Cash and cash equivalents ... $ 848,358
Accrued expenses ............ (19,570)
- ------------------------------------------
$ 828,788
==========================================
</TABLE>
During the six months ended April 30, 1998, the foreign subsidiary had no
purchases or sales of precious metals. Investment activities of the foreign
subsidiary resulted in gross investment income, general and administrative
expenses, and net investment income $40,403, $18,906 and $21,497, respectively.
Management fees paid or accrued by the foreign subsidiary to Keystone totaled
$6,731 for the six months ended April 30, 1998.
5. CAPITAL SHARE TRANSACTIONS
The Funds have an unlimited number of shares of beneficial interest with a par
value of $0.0001 authorized. Shares of beneficial interest of the Funds are
currently divided into Class A, Class B, Class C and Class Y. Transactions in
shares of the Funds were as follows:
- --------------------------------------------------------------------------------
GLOBAL OPPORTUNITIES
<TABLE>
<CAPTION>
Six Months Ended Period Ended
April 30, 1997 October 31, 1997*
-------------------------------- ------------------------------
Shares Amount Shares Amount
--------------- ---------------- ------------- ----------------
<S> <C> <C> <C> <C>
Class A
Shares sold ................................... 1,020,523 $ 24,343,026 205,158 $ 5,151,881
Shares redeemed ............................... (2,153,045) (49,416,369) (595,578) (14,880,208)
Shares issued in reinvestment of distributions 224,107 4,890,006 0 0
- -------------------------------------------------------------------------------------------------------------
Net decrease .................................. (908,415) (20,183,337) (390,420) (9,728,327)
- -------------------------------------------------------------------------------------------------------------
Class B
Shares sold ................................... 170,505 3,820,396 22,401 532,211
Shares redeemed ............................... (2,465,776) (53,444,806) (424,559) (10,089,631)
Shares issued in reinvestment of distributions 620,043 13,008,494 0 0
- -------------------------------------------------------------------------------------------------------------
Net decrease .................................. (1,675,228) (36,615,916) (402,158) (9,557,420)
- -------------------------------------------------------------------------------------------------------------
Class C
Shares sold ................................... 43,031 964,703 10,542 254,628
Shares redeemed ............................... (580,611) (12,698,438) (137,741) (3,320,800)
Shares issued in reinvestment of distributions 126,413 2,657,194 0 0
- -------------------------------------------------------------------------------------------------------------
Net decrease .................................. (411,167) (9,076,541) (127,199) (3,066,172)
- -------------------------------------------------------------------------------------------------------------
Class Y
Shares sold ................................... 843 18,574 0 0
Shares redeemed ............................... -- -- 0 0
Shares issued in reinvestment of distributions -- -- 0 0
- -------------------------------------------------------------------------------------------------------------
Net increase .................................. 843 18,574 0 0
- -------------------------------------------------------------------------------------------------------------
Net decrease .................................. (2,993,967) $ (65,857,220) (919,777) $ (22,351,919)
=============================================================================================================
<CAPTION>
Year Ended
September 30, 1997
---------------------------------
Shares Amount
--------------- -----------------
<S> <C> <C>
Class A
Shares sold ................................... 1,724,686 $ 40,645,838
Shares redeemed ............................... (7,656,939) (176,796,539)
Shares issued in reinvestment of distributions 293,025 6,669,240
- -------------------------------------------------------------------------------
Net decrease .................................. (5,639,228) (129,481,461)
- -------------------------------------------------------------------------------
Class B
Shares sold ................................... 1,025,563 23,070,741
Shares redeemed ............................... (8,009,248) (177,499,072)
Shares issued in reinvestment of distributions 798,355 17,651,626
- -------------------------------------------------------------------------------
Net decrease .................................. (6,185,330) (136,776,705)
- --------------------------------------------------------------------------------
Class C
Shares sold ................................... 390,436 8,779,908
Shares redeemed ............................... (3,780,382) (83,396,941)
Shares issued in reinvestment of distributions 250,089 5,539,478
- -------------------------------------------------------------------------------
Net decrease .................................. (3,139,857) (69,077,555)
- -------------------------------------------------------------------------------
Class Y
Shares sold ................................... 1 23
Shares redeemed ............................... 0 0
Shares issued in reinvestment of distributions 0 0
- -------------------------------------------------------------------------------
Net increase .................................. 1 23
- -------------------------------------------------------------------------------
Net decrease .................................. (14,964,414) $ (335,335,698)
===============================================================================
</TABLE>
* The Fund changed its fiscal year end from September 30 to October 31,
effective October 31, 1997.
61
<PAGE>
Combined Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1997 October 31, 1997
-------------------------------- ----------------------------------
Shares Amount Shares Amount
--------------- ---------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Class A
Shares sold ............................................. 1,421,738 $ 11,172,599 0 0
Automatic conversion of Class B shares to Class A shares 13,877,478 95,438,329 0 0
Shares redeemed ......................................... (2,672,975) (20,536,106) 0 0
- ---------------------------------------------------------------------------------------------------------------------------
Net increase ............................................ 12,626,241 86,074,822 0 0
- ---------------------------------------------------------------------------------------------------------------------------
Class B
Shares sold ............................................. 3,142,827 23,891,948 18,930,328 $ 159,178,048
Automatic conversion of Class B shares to Class A shares (13,877,478) (95,438,329) 0 0
Shares redeemed ......................................... (4,598,183) (34,184,349) (21,092,806) (178,656,491)
Shares issued in reinvestment of distributions .......... 4,141,410 28,410,069 463,479 4,222,295
- ---------------------------------------------------------------------------------------------------------------------------
Net decrease ............................................ (11,191,424) (77,320,661) (1,698,999) (15,256,148)
- ---------------------------------------------------------------------------------------------------------------------------
Class C
Shares sold ............................................. 28,125 233,226 0 0
- ---------------------------------------------------------------------------------------------------------------------------
Net increase ............................................ 28,125 233,226 0 0
- ---------------------------------------------------------------------------------------------------------------------------
Class Y
Shares sold ............................................. 3,034,353 25,093,972 0 0
Shares redeemed ......................................... (598) (4,961) 0 0
- ---------------------------------------------------------------------------------------------------------------------------
Net increase ............................................ 3,033,755 25,089,011 0 0
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) ................................. 4,496,697 $ 34,076,398 (1,698,999) $ (15,256,148)
===========================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
LATIN AMERICA
<TABLE>
<CAPTION>
Six Months Ended Year Ended
April 30, 1997 October 31, 1997
------------------------------- --------------------------------
Shares Amount Shares Amount
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
Class A
Shares sold ................................... 719,315 $ 7,820,054 793,746 $ 12,013,304
Shares redeemed ............................... (901,590) (9,821,763) (755,902) (10,989,824)
Shares issued in reinvestment of distributions 253,396 2,718,936 7,159 82,042
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) ....................... 71,121 717,227 45,003 1,105,522
- --------------------------------------------------------------------------------------------------------------
Class B
Shares sold ................................... 384,222 4,351,465 1,353,616 18,851,845
Shares redeemed ............................... (1,591,035) (17,167,188) (2,761,745) (37,765,324)
Shares issued in reinvestment of distributions 1,410,947 14,772,617 44,425 502,887
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) ....................... 204,134 1,956,894 (1,363,704) (18,410,592)
- --------------------------------------------------------------------------------------------------------------
Class C
Shares sold ................................... 69,304 749,560 305,017 4,400,152
Shares redeemed ............................... (320,364) (3,443,771) (261,244) (3,744,348)
Shares issued in reinvestment of distributions 203,815 2,133,947 4,841 54,852
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) ....................... (47,245) (560,264) 48,614 710,656
- --------------------------------------------------------------------------------------------------------------
Class Y
Shares sold ................................... 109 1,224 0 0
Shares redeemed ............................... 0 0 0 0
Shares issued in reinvestment of distributions 0 0 0 0
- --------------------------------------------------------------------------------------------------------------
Net increase .................................. 109 1,224 -- --
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) ....................... 228,119 $ 2,115,081 (1,270,087) $ (16,594,414)
==============================================================================================================
</TABLE>
62
<PAGE>
Combined Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
NATURAL RESOURCES
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1998
--------------------------------
Shares Amount
--------------- ----------------
<S> <C> <C>
Class A
Shares sold ........................................ 1,130,293 $ 11,710,893
Shares redeemed .................................... (1,116,328) (11,691,990)
Shares issued in reinvestment of distributions ..... 36,032 383,007
- -----------------------------------------------------------------------------------
Net increase (decrease) ............................ 49,997 401,910
- -----------------------------------------------------------------------------------
Class B
Shares sold ........................................ 421,148 4,269,921
Shares redeemed .................................... (872,787) (8,780,605)
Shares issued in reinvestment of distributions ..... 144,444 1,497,881
- -----------------------------------------------------------------------------------
Net increase (decrease) ............................ (307,195) (3,012,803)
- -----------------------------------------------------------------------------------
Class C
Shares sold ........................................ 5,254 53,075
Shares redeemed .................................... (125,836) (1,269,477)
Shares issued in reinvestment of distributions ..... 26,942 279,113
- -----------------------------------------------------------------------------------
Net increase (decrease) ............................ (93,640) (937,289)
- -----------------------------------------------------------------------------------
Net increase (decrease) ............................ (350,838) $ (3,548,182)
===================================================================================
<CAPTION>
Seven Month
Period Ended Year Ended
October 31, 1997* March 31, 1997
---------------------------- -----------------------------
Shares Amount Shares Amount
------------ --------------- ------------- ---------------
<S> <C> <C> <C> <C>
Class A
Shares sold ........................................ 20,364 $ 257,582 99,899 $ 1,149,694
Shares redeemed .................................... (79,574) (1,059,272) (157,432) (1,830,659)
Shares issued in reinvestment of distributions ..... 0 0 0 0
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) ............................ (59,210) (801,690) (57,533) (680,965)
- --------------------------------------------------------------------------------------------------------------
Class B
Shares sold ........................................ 78,508 1,020,278 391,020 4,494,545
Shares redeemed .................................... (279,700) (3,612,501) (371,723) (4,250,880)
Shares issued in reinvestment of distributions ..... 0 0 0 0
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) ............................ (201,192) (2,592,223) 19,297 243,665
- --------------------------------------------------------------------------------------------------------------
Class C
Shares sold ........................................ 27,528 348,505 317,784 3,596,943
Shares redeemed .................................... (190,823) (2,395,089) (124,231) (1,433,936)
Shares issued in reinvestment of distributions ..... 0 0 0 0
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) ............................ (163,295) (2,046,584) 193,553 2,163,007
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) ............................ (423,697) $ (5,440,497) 155,317 $ 1,725,707
==============================================================================================================
</TABLE>
* The Fund changed its fiscal year end from March 31 to October 31, effective
October 31, 1997.
- --------------------------------------------------------------------------------
PRECIOUS METALS
<TABLE>
<CAPTION>
Six Months Ended Period Ended
April 30, 1997 October 31, 1997**
-------------------------------- ---------------------------------
Shares Amount Shares Amount
--------------- ---------------- --------------- -----------------
<S> <C> <C> <C> <C>
Class A
Shares sold ........................................ 3,686,408 $ 55,739,085 0 0
Automatic conversion of Class B shares to ..........
Class A shares .................................... 5,262,793 65,498,249 0 0
Shares redeemed .................................... (4,565,933) (64,977,321) 0 0
Shares issued in acquisition of Blanchard ..........
Precious Metals Fund .............................. 3,176,709 39,424,759 0 0
- ---------------------------------------------------------------------------------------------------------------------
Net increase ....................................... 7,559,977 95,684,772 0 0
- ---------------------------------------------------------------------------------------------------------------------
Class B
Shares sold ........................................ 4,305,775 55,730,500 4,394,845 $ 83,990,548
Automatic conversion of Class B shares to ..........
Class A shares .................................... (5,262,793) (65,498,249) 0 0
Shares redeemed .................................... (4,128,952) (54,440,166) (5,332,804) (103,860,464)
Shares issued in reinvestment of distributions ..... 357,072 4,759,767 0 0
- ---------------------------------------------------------------------------------------------------------------------
Net decrease ....................................... (4,728,898) (59,448,148) (937,959) (19,869,916)
- ---------------------------------------------------------------------------------------------------------------------
Class C
Shares sold ........................................ 50,428 701,424 0 0
- ---------------------------------------------------------------------------------------------------------------------
Net increase ....................................... 50,428 701,424 0 0
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) ............................ 2,881,507 $ 36,938,048 (937,959) $ (19,869,916)
=====================================================================================================================
<CAPTION>
Year Ended
February 28, 1997
----------------------------------
Shares Amount
---------------- -----------------
<S> <C> <C>
Class A
Shares sold ........................................ 0 0
Automatic conversion of Class B shares to ..........
Class A shares .................................... 0 0
Shares redeemed .................................... 0 0
Shares issued in acquisition of Blanchard ..........
Precious Metals Fund .............................. 0 0
- -------------------------------------------------------------------------------------
Net increase ....................................... 0 0
- -------------------------------------------------------------------------------------
Class B
Shares sold ........................................ 25,602,726 $ 618,026,217
Automatic conversion of Class B shares to ..........
Class A shares .................................... 264,364 5,971,990
Shares redeemed .................................... (26,171,322) (638,015,009)
Shares issued in reinvestment of distributions ..... 0 0
- -------------------------------------------------------------------------------------
Net decrease ....................................... (304,232) (14,016,802)
- -------------------------------------------------------------------------------------
Class C
Shares sold ........................................ 0 0
- -------------------------------------------------------------------------------------
Net increase ....................................... 0 0
- -------------------------------------------------------------------------------------
Net increase (decrease) ............................ (304,232) $ (14,016,802)
=====================================================================================
</TABLE>
** The Fund changed its fiscal year end from February 28 to October 31,
effective October 31, 1997.
6. SECURITIES TRANSACTIONS
Cost of purchases and proceeds from sales of investment securities (excluding
short-term investments) were as follows for the six months ended April 30,
1998:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases from Sales
--------------- ---------------
<S> <C> <C>
Global Opportunities ...... $188,291,632 $255,481,696
International Growth ...... 82,070,923 67,367,938
Latin America ............. 62,528,298 74,189,360
Natural Resources ......... 3,072,372 9,134,354
Precious Metals ........... 94,111,361 14,450,473
</TABLE>
63
<PAGE>
Combined Notes to Financial Statements (continued)
7. DISTRIBUTION PLANS
Evergreen Distributor, Inc.("EDI"), a wholly-owned subsidiary of The BISYS
Group Inc. ("BISYS") serves as principal underwriter to the Funds.
Each Fund has adopted Distribution Plans for each class of shares, except Class
Y, as allowed by Rule 12b-1 of the 1940 Act. Distribution plans permit the
Funds to reimburse its principal underwriter for costs related to selling
shares of the Funds and for various other services. These costs, which consist
primarily of commissions and service fees to broker/dealers who sell shares of
the fund, are paid by the fund through expenses called "Distribution Plan
expenses". Each class, except Class Y, currently pays a service fee equal to
0.25% of the average daily net asset value of the class. Class B and Class C
also pay distribution fees equal to 0.75% of the average daily net assets of
the class. Distribution Plan expenses are calculated daily and paid monthly.
With respect to Class B and Class C shares, the principal underwriter may pay
12b-1 fees greater than the allowable annual amounts the Fund is permitted to
pay. The Fund may reimburse the principal underwriter for such excess amounts
in later years with annual interest at the prime rate plus 1.00%.
During the six months ended April 30, 1998, amounts paid to EDI and/or its
predecessor pursuant to each Fund's Class A, Class B and Class C Distribution
Plans were as follows:
<TABLE>
<CAPTION>
Class A Class B Class C
----------- ----------- -----------
<S> <C> <C> <C>
Global Opportunities ....... $105,223 $968,197 $192,627
International Growth ....... 69,846 451,157 105
Latin America .............. 16,848 353,466 48,669
Natural Resources .......... 4,189 58,108 8,533
Precious Metals ............ 65,788 299,759 748
</TABLE>
Each of the Distribution Plans may be terminated at any time by vote of the
Independent Trustees or by vote of a majority of the outstanding voting shares
of the respective class. However, after the termination of any Distribution
Plan, and subject to the discretion of the Independent Trustees, payments to
EDI and/or its predecessor may continue as compensation for services that had
been provided while the Distribution Plan was in effect.
Contingent deferred sales charges paid by redeeming shareholders are paid to
EDI or its predecessor.
8. INVESTMENT MANAGEMENT AGREEMENT AND OTHER AFFILIATED TRANSACTIONS
The investment advisor to the Funds is Keystone. Keystone is a subsidiary of
First Union, and is entitled to an annual fee based on each of the Funds'
average daily net assets, respectively, in accordance with the following
schedules:
<TABLE>
<CAPTION>
Advisory Fee Average Daily Net Assets
-------------- --------------------------
<S> <C> <C>
Global Opportunities 1.00% on the first $200 million
.95% on the next $200 million
.85% on the next $200 million
.75% in excess of $600 million
</TABLE>
<TABLE>
<CAPTION>
Advisory Fee Average Daily Net Assets
-------------- --------------------------
<S> <C> <C>
International Growth .75% on the first $200 million
.65% on the next $200 million
.55% on the next $200 million
.45% in excess of $600 million
</TABLE>
<TABLE>
<CAPTION>
Advisory Fee Average Daily Net Assets
-------------- --------------------------
<S> <C> <C>
Latin America .75% on the first $200 million
.65% on the next $200 million
.55% on the next $200 million
.45% in excess of $600 million
</TABLE>
<TABLE>
<CAPTION>
Advisory Fee Average Daily Net Assets
-------------- --------------------------
<S> <C> <C>
Precious Metals .75% on the first $100 million
.625% on the next $100 million
.50% in excess of $200 million
</TABLE>
Natural Resources pays a fee for its services at the annual rate of 1.00% of
the Fund's average daily net assets.
64
<PAGE>
Combined Notes to Financial Statements (continued)
For Natural Resources, Keystone has entered into a Sub-Investment Advisory
Agreement with Equitilink International Management Limited ("EIML"), under
which EIML provides Keystone with investment research and advice and may
provide investment supervision or furnish an investment program for certain
assets of the Fund. For its services, EIML receives from Keystone 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 EIML provided services in a
discretionary capacity.
For Precious Metals, Harbor Capital Management Company, Inc. ("Harbor
Capital"), serves as a consultant to Keystone 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.
EIS is the administrator and BISYS is the sub-administrator to the Funds . As
sub-administrator to the Funds, BISYS Fund Services provides the officers of
the Funds. The administrator and sub-administrator for each Fund are entitled
to an annual fee based on the average daily net assets of the funds
administered by EIS for which First Union or its investment advisory
subsidiaries are also the investment advisers. The administration fee is
calculated by applying percentage rates, which start at 0.05% and decline to
0.01% per annum as net assets increase, to the average daily net asset value of
the Fund. The sub-administration fee, for the Funds is calculated by applying
percentage rates, which start at 0.01% and decline to .004% as net assets
increase, to the average daily net asset value of the Fund.
Evergreen Service Company ("ESC"), a wholly-owned subsidiary of Keystone,
serves as the transfer and dividend disbursing agent for the Funds.
Officers of the Funds and affiliated Trustees receive no compensation directly
from the Funds.
9. EXPENSE OFFSET ARRANGEMENT
The Funds have entered into an expense offset arrangement with their custodian.
The assets deposited with the custodian under this expense offset arrangement
could have been invested in income-producing assets.
10. DEFERRED INDEPENDENT TRUSTEES' FEES
Each Independent Trustee of the Funds may defer any or all compensation related
to performance of their duties as Trustees. The Trustees' deferred balances are
allocated to deferral accounts which are included in the accrued expenses for
the Funds. The investment performance of the deferral accounts are based on the
investment performance of certain Evergreen Funds. Any gains earned or losses
incurred in the deferral accounts are reported in the Fund's Trustees' fees and
expenses. Trustees will be paid either in one lump sum or in quarterly
installments for up to ten years at their election, not earlier than either the
year in which the Trustee ceases to be a member of the Board of Trustees or
January 1, 2000. As of April 30, 1998, the value of the Trustees deferral
account for $12,681, $3,960, $3,366, $323 and $3,101 for Global Opportunities,
International Growth, Latin America, Natural Resources and Precious Metals,
respectively.
11. FINANCING AGREEMENT
On December 22, 1997, a financing agreement among all of the Evergreen Funds,
State Street and a group of Banks became effective. Under this agreement, the
Banks provide an unsecured credit facility in the aggregate amount of $400
million ($275 million committed and $125 million uncommitted). The credit
facility is allocated, under the terms of the financing agreement, among the
Banks. The credit facility is to be accessed by the Funds for temporary or
emergency purposes only and is subject to each Fund's borrowing restrictions.
Borrowings under this facility bear interest at 0.50% per annum above the
Federal Funds rate. A commitment fee of 0.065% per annum will be incurred on
the unused portion of the committed facility, which will be allocated to all
Funds. For its assistance in arranging this financing agreement, the Capital
Market Group of First Union was paid a one time arrangement fee of $27,500.
State Street serves as administrative agent for the Banks, and as
administrative agent is entitled to a fee of $20,000 per annum which is
allocated to all of the Funds.
During the six months ended April 30, 1998, the Funds had no significant
borrowings under these agreements.
65
<PAGE>
ADDITIONAL INFORMATION (Unaudited)
Special Meeting of Shareholders
On December 15, 1997, a special meeting of shareholders for Global
Opportunities, International Growth, Latin America and Precious Metals was held
to consider a number of proposals and had the following shares represented at
the meeting.
On October 16, 1997, the record date for the meeting, the Funds had the
following shares outstanding:
<TABLE>
<CAPTION>
Global International Latin Precious
Opportunities Growth America Metals
--------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Record date shares outstanding ............................. 16,090,802 17,612,775 8,054,739 7,002,302
Shares represented at meeting .............................. 8,912,562 10,148,590 4,406,779 4,274,852
Percentage of record date shares represented at meeting .... 55.4% 57.6% 54.7% 61.0%
</TABLE>
The votes recorded at the meeting, by proposal, were as follows:
<TABLE>
<CAPTION>
Global International Latin Precious
Opportunities Growth America Metals
--------------- --------------- ----------- ------------
<S> <C> <C> <C> <C>
Proposal 1 -- The proposed reorganization of each Fund as a series of the Evergreen
International Trust, a Delaware business trust:
Shares voted "For" ............. 8,139,314 9,253,913 4,036,101 3,685,665
Shares voted "Against" ......... 175,792 243,725 78,460 200,598
Shares voted "Abstain" ......... 597,456 650,952 292,218 388,589
Proposal 2 -- Reclassification as non-fundamental of the investment objective currently
classified as fundamental:
Shares voted "For" ............. 8,029,681 9,132,425 3,959,155 3,597,947
Shares voted "Against" ......... 258,231 350,098 134,930 285,167
Shares voted "Abstain" ......... 624,650 665,807 312,694 391,738
Proposal 3 -- Changes to Fundamental investment restrictions:
Proposal 3A -- To amend the Fundamental restriction concerning diversification of
investments:
Shares voted "For" ............. 8,015,020 9,106,305 3,930,971 3,596,088
Shares voted "Against" ......... 176,406 300,539 137,729 265,234
Shares voted "Abstain" ......... 721,136 741,746 338,079 413,530
Proposal 3B -- To amend the Fundamental restriction concerning concentration of a Fund's
assets in a particular industry:
Shares voted "For" ............. 8,068,465 9,101,322 3,930,971 3,596,088
Shares voted "Against" ......... 176,975 303,149 137,729 265,234
Shares voted "Abstain" ......... 667,122 744,119 338,079 413,530
Proposal 3C -- To amend the Fundamental restriction concerning the issuance of senior
securities:
Shares voted "For" ............. 8,072,417 9,102,842 3,930,033 3,595,310
Shares voted "Against" ......... 173,023 301,629 138,667 266,012
Shares voted "Abstain" ......... 667,122 744,119 338,079 413,530
Proposal 3D -- To amend the Fundamental restriction concerning borrowing:
Shares voted "For" ............. 80,168,371 9,103,631 3,930,139 3,593,368
Shares voted "Against" ......... 177,069 300,840 138,561 267,954
Shares voted "Abstain" ......... 667,122 744,119 338,079 413,530
Proposal 3E -- To amend the Fundamental restriction concerning underwriting:
Shares voted "For" ............. 8,071,914 9,104,267 3,930,865 3,594,834
Shares voted "Against" ......... 173,526 300,204 137,835 266,488
Shares voted "Abstain" ......... 667,122 744,119 338,079 413,530
Proposal 3F -- To amend the Fundamental restriction concerning investments in Real Estate:
Shares voted "For" ............. 8,073,115 9,104,267 3,932,344 3,592,924
Shares voted "Against" ......... 172,325 300,204 136,356 268,398
Shares voted "Abstain" ......... 667,122 744,119 338,079 413,530
Proposal 3G -- To amend the Fundamental restriction concerning commodities:
Shares voted "For" ............. 8,069,564 9,103,631 3,932,089 3,594,829
Shares voted "Against" ......... 175,876 300,840 136,611 266,493
Shares voted "Abstain" ......... 667,122 744,119 338,079 413,530
</TABLE>
66
<PAGE>
ADDITIONAL INFORMATION (Unaudited) (continued)
<TABLE>
<CAPTION>
Global International Latin Precious
Opportunities Growth America Metals
--------------- --------------- ----------- ------------
<S> <C> <C> <C> <C>
Proposal 3H -- To amend the Fundamental restriction concerning lending:
Shares voted "For" ............. 8,069,593 9,104,187 3,930,181 3,594,307
Shares voted "Against" ......... 175,847 300,284 138,519 267,015
Shares voted "Abstain" ......... 667,122 744,119 338,079 413,530
Proposal 3J9 -- Reclassification as non-fundamental of current fundamental restriction:
Unseasoned Issuers
Shares voted "For" ............. 8,028,843 9,091,679 3,929,188 3,593,351
Shares voted "Against" ......... 178,186 311,158 138,159 268,256
Shares voted "Abstain" ......... 705,533 745,753 339,432 413,245
Proposal 3J10 -- Reclassification as non-fundamental of current fundamental restriction:
Control or Management
Shares voted "For" ............. 8,067,703 9,092,559 N/A 3,595,062
Shares voted "Against" ......... 176,699 310,278 N/A 266,544
Shares voted "Abstain" ......... 668,160 745,753 N/A 413,246
Proposal 3J11 -- Reclassification as non-fundamental of current fundamental restriction:
Short Sales
Shares voted "For" ............. 8,066,531 9,091,082 N/A 3,593,067
Shares voted "Against" ......... 178,854 310,278 N/A 268,540
Shares voted "Abstain" ......... 667,177 747,230 N/A 413,245
Proposal 3J12 -- Reclassification as non-fundamental of current fundamental restriction:
Margin Purchases
Shares voted "For" ............. 8,064,822 9,089,503 N/A 3,595,733
Shares voted "Against" ......... 176,227 311,945 N/A 265,874
Shares voted "Abstain" ......... 671,513 747,142 N/A 413,245
Proposal 3J13 -- Reclassification as non-fundamental of current fundamental restriction:
Other Investment Companies
Shares voted "For" ............. 8,060,185 9,089,399 N/A 3,594,976
Shares voted "Against" ......... 181,322 312,826 N/A 268,243
Shares voted "Abstain" ......... 671,055 746,365 N/A 411,633
Proposal 3J14 -- Reclassification as non-fundamental of current fundamental restriction:
Officers' and Director's Ownership of Shares
Shares voted "For" ............. 8,066,166 N/A N/A 3,597,951
Shares voted "Against" ......... 175,688 N/A N/A 265,268
Shares voted "Abstain" ......... 670,708 N/A N/A 411,633
Proposal 3J15 -- Reclassification as non-fundamental of current fundamental restriction:
Warrants
Shares voted "For" ............. N/A N/A N/A 3,598,475
Shares voted "Against" ......... N/A N/A N/A 264,681
Shares voted "Abstain" ......... N/A N/A N/A 411,696
Proposal 3J16 -- Reclassification as non-fundamental of current fundamental restriction:
Interests in Oil, Gas, or Other Mineral Explorations or Development Programs
Shares voted "For" ............. N/A N/A N/A 3,596,516
Shares voted "Against" ......... N/A N/A N/A 266,640
Shares voted "Abstain" ......... N/A N/A N/A 411,696
Proposal 3J17 -- Reclassification as non-fundamental of current fundamental restriction:
Joint Trading
Shares voted "For" ............. N/A N/A N/A 3,597,121
Shares voted "Against" ......... N/A N/A N/A 266,035
Shares voted "Abstain" ......... N/A N/A N/A 411,696
Proposal 5 -- Amendment to the Investment Objective
Shares voted "For" ............. N/A N/A 3,890,925 N/A
Shares voted "Against" ......... N/A N/A 183,710 N/A
Shares voted "Abstain" ......... N/A N/A 332,144 N/A
Proposal 6 -- Amendment to the Fundamental Restriction
Shares voted "For" ............. N/A N/A 3,926,583 N/A
Shares voted "Against" ......... N/A N/A 146,203 N/A
Shares voted "Abstain" ......... N/A N/A 333,993 N/A
</TABLE>
67
<PAGE>
(This Page Intentionally Left Blank)
Evergreen Funds
MONEY MARKET
Treasury Money Market Fund
Money Market Fund
Municipal Money Market Fund
Pennsylvania Municipal Money Market Fund
TAX EXEMPT
Short Intermediate Municipal Fund
High Grade Tax Free Fund
Tax Free Fund
California Tax Free Fund
Connecticut Municipal Bond Fund
Florida Municipal Bond Fund
Florida High Income Municipal Bond Fund
Georgia Municipal Bond Fund
Maryland Municipal Bond Fund
Massachusetts Tax Free Fund
Missouri Tax Free Fund
New Jersey Tax Free Income Fund
New York Tax Free Fund
North Carolina Municipal Bond Fund
Pennsylvania Tax Free Fund
South Carolina Municipal Bond Fund
Virginia Municipal Bond Fund
INCOME
Capital Preservation and Income Fund
Short Intermediate Bond Fund
Intermediate Term Government Securities Fund
Intermediate Term Bond Fund
U.S. Government Fund
Diversified Bond Fund
Strategic Income Fund
High Yeild Bond Fund
BALANCED
American Retirement Fund
Balanced Fund
Tax Strategic Foundation Fund
Foundation Fund
GROWTH & INCOME
Utility Fund
Income and Growth Fund
Fund for Total Return
Value Fund
Blue Chip Fund
Growth & Income Fund
Small Cap Equity Income Fund
DOMESTIC GROWTH
Evergreen Fund
Omega Fund
Small Company Growth Fund
Strategic Growth Fund
Aggressive Growth Fund
Micro Cap Fund
GLOBAL
Global Leaders Fund
International Growth Fund
International Equity Fund
Global Opportunities Fund
Natural Resources Fund
Precious Metals Fund
Emerging Markets Growth Fund
Latin America Fund
EXPRESS LINE
800-346-3858
INVESTOR SERVICES
800-343-2898
RETIREMENT PLAN SERVICES
800-247-4075
www.evergreenfunds.com
69357 544028 RV00 6/98
BULK RATE
Logo Appears Here U.S. POSTAGE
Evergreen Funds PAID
Since 1932 CHARLOTTE, NC
PERMIT NO. 136
201 South College St.
Charlotte, NC 28288
