EVERGREEN INTERNATIONAL TRUST, N-30D, 1998-12-28

EVERGREEN INTERNATIONAL TRUST
N-30D, 1998-12-28

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October 31, 1998

Annual Report

[LOGO OF EVERGREEN FUNDS(SM) APPEARS HERE]

Evergreen

International and
Global Growth
Funds
<PAGE>

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Table of Contents
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Letter to Shareholders....................................................... 1

For Your Information......................................................... 2

Evergreen Emerging Markets Growth Fund

Fund at a Glance.......................................................... 3

Portfolio Manager Interview............................................... 4

Evergreen Global Leaders Fund

Fund at a Glance.......................................................... 7

Portfolio Manager Interview............................................... 8

Evergreen Global Opportunities Fund

Fund at a Glance.......................................................... 11

Portfolio Manager Interview............................................... 12

Evergreen International Growth Fund

Fund at a Glance.......................................................... 16

Portfolio Manager Interview............................................... 17

Evergreen Latin America Fund

Fund at a Glance.......................................................... 20

Portfolio Manager Interview............................................... 21

Evergreen Precious Metals Fund

Fund at a Glance.......................................................... 24

Portfolio Manager Interview............................................... 25

Financial Highlights

Evergreen Emerging Markets Growth Fund.................................... 28

Evergreen Global Leaders Fund............................................. 30

Evergreen Global Opportunities Fund....................................... 32

Evergreen International Growth Fund....................................... 34

Evergreen Latin America Fund.............................................. 36

Evergreen Precious Metals Fund............................................ 38

Schedule of Investments

Evergreen Emerging Markets Growth Fund.................................... 40

Evergreen Global Leaders Fund............................................. 42

Evergreen Global Opportunities Fund....................................... 45

Evergreen International Growth Fund....................................... 49

Evergreen Latin America Fund.............................................. 53

Evergreen Precious Metals Fund............................................ 55

Statements of Assets and Liabilities......................................... 57

Statements of Operations..................................................... 58

Statements of Changes in Net Assets.......................................... 59

Combined Notes to Financial Statements....................................... 62

Independent Auditors' Reports................................................ 73

Report of Independent Accountants............................................ 74

Additional Information....................................................... 75

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Evergreen Funds
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Evergreen Funds is one of the nation's fastest growing investment companies with
approximately $50 billion in assets under management.

With over 70 mutual funds to choose among and acclaimed service and operations
capabilities, investors enjoy a broad range of quality investment products and
services designed to meet their needs.

The Evergreen Funds employ intensive, research-driven investment strategies
executed by over 90 research analysts and portfolio managers. The fund company
remains dedicated to meeting the needs of investors and their advisors in a
global economy. Look to the Evergreen Funds to provide a distinctive level of
service and excellence in investment management.

- --------------------------------------------------------------------------------

This annual 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.

----------------------------------------------------------------
Mutual Funds: ARE NOT FDIC INSURED May lose value . Are not bank guaranteed
----------------------------------------------------------------

Evergreen Distributor, Inc.
Evergreen(SM) is a Service Mark of Evergreen Investment Services, Inc.

International investing involves special risks, such as fluctuating currency
exchange rates and political and economic instability.

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Letter to Shareholders
----------------------

December 1998

[PHOTO OF WILLIAM M. ENNIS APPEARS HERE]

William M. Ennis
Managing Director

Dear Shareholders:

We are pleased to provide you the Evergreen International and Global Growth
Funds annual report covering the fiscal year ended October 31, 1998. The past 12
months have been a very challenging environment for international investing.

Market Volatility

The financial markets have certainly experienced volatility in the past several
months. Concerns of foreign currency devaluation, political turbulence and
instability abroad have produced an uncertain market. Through September, the
market all but lost its year-to-date gains, and then in November was on the
rise, reaching new highs. We encourage you to take this opportunity to talk to
your financial representative and review your investment time horizon and ensure
you are on track with your goals.

Introduction of the Euro

On January 1, 1999, eleven European countries will adopt the euro as their
currency. On this date, the wholesale markets and government and financial
sectors will convert to the euro, and new securities will be issued in euro
denomination only. Full conversion to the new currency will not be completed
until 2002. Three of the funds in this report own securities in one or more of
the European Union countries: Evergreen Global Leaders, Evergreen Global
Opportunities, and Evergreen International Growth.

At this point it is still unclear how the euro conversion will affect foreign
exchange rates, interest rates and the value of European securities, but we
believe the potential benefits to globally oriented investors are significant.
They include changes in currency risk, increased competition, and a central
bank. Foreign exchange risk may decrease for the countries participating in the
European Union; however, currency risk associated with rises and declines of the
value of the euro versus the dollar will still exist. Most noticeable for
investors will be the ability to compare the value of companies across the
European Union member countries without having to factor in the effect of
fluctuating currencies. Increased competition resulting from deregulation and
economic unification may produce a wave of merger and acquisition activity,
which could present attractive investment opportunities for those able to
identify the companies most inclined to benefit from restructuring. Finally, the
European Central Bank, comparable to the U.S. Federal Reserve, will provide
European Union countries with a unified monetary policy for the first time.

We are optimistic about the opportunities for international investing and
believe we offer a competitive group of international and global growth funds
with different strategies and objectives to provide diversification within your
portfolio. Please contact your financial representative or call us at
800.343.2898 to learn more about our funds.

Thank you for your continued investment with Evergreen Funds.

Sincerely,

/s/ William M. Ennis

William M. Ennis
Managing Director
Evergreen Funds

1
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For Your Information
--------------------

Good News!
Effective for the 1998 Tax Year, long-term capital gains taxes are reduced to
20%.

Year 2000/1/
We have been addressing the Year 2000 issue since February 1996 and have adopted
an industry best practices methodology for the project. Our team is on schedule
to complete the following milestones: Inventory and Assessment, Remediation,
Testing and Contingency. Although Evergreen Funds is striving to identify and
correct every issue under our control related to the Year 2000, it would be
impossible to guarantee a problem-free transition into the next millennium. Our
goal, however, is that our shareholders experience virtually no impact on the
products and services we deliver.

Cost Savings
In an effort to achieve efficiencies and cost savings, we are combining your
funds' required mailings so you only receive one per household, based on the
registration last name and exact address./2/ This reduces the mailing costs, not
to mention the amount of paper needed to print, which in turn benefits your
funds by reducing the overall expenses. If you prefer to receive separate copies
of reports and prospectuses for each registered holder in your household, please
notify us by calling the number on your statement and we will adjust our records
accordingly.

New Evergreen Funds
Evergreen introduces three new funds:

Evergreen Tax Strategic Equity Fund seeks to maximize the after-tax total return
on its portfolio of investment by using a combination of stock selection
strategies and trading techniques.

Evergreen Select Equity Index Fund seeks investment results that achieve price
and yield performance similar to the S&P 500 Index.

Evergreen Masters Fund blends growth and value, large- and mid-cap stocks into
one convenient portfolio. Diversification is taken one step further by employing
four management teams, Evergreen, MFS, Oppenheimer, and Putnam.

Talk to your financial representative or call us at 800.343.2898 for a
prospectus and more information.

/1/ The information above constitutes Year 2000 readiness disclosure.
/2/ If you purchased your shares through a financial representative, we may not
be able to consolidate your mailings by last name and address, because that
institution controls the mailings.

2
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EVERGREEN
Emerging Markets Growth Fund
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Fund at a Glance as of October 31, 1998

Portfolio
Management
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[PHOTO OF GILMAN GUNN APPEARS HERE]

Gilman Gunn
Tenure: September 1997

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CURRENT INVESTMENT STYLE/1/
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[GRAPHIC Morningstar's Style Box is based on a portfolio date as of
APPEARS 9/30/98.
HERE]
The Equity Style Box placement is based on a fund's
price-to-earnings and price-to-book ratio relative to the
S&P 500, as well as the size of the companies in which it
invests, or median market capitalization.

/1/Source: 1998 Morningstar, Inc.

Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. The MSCIEMI and the MSCIEAFEI are unmanaged indices and
do not include transaction costs associated with buying and selling securities
or any management fees. The CPI is a commonly used measure of inflation and does
not represent an investment return. It is not possible to invest directly in an
index.

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PERFORMANCE AND RETURNS*
- --------------------------------------------------------------------------------
Class A Class B Class C Class Y
Inception Date 9/6/94 9/6/94 9/6/94 9/6/94
................................................................................
Average Annual Returns
................................................................................
1 year with sales charge -22.74% -23.80% -20.78% n/a
................................................................................
1 year w/o sales charge -18.89% -19.89% -20.00% -18.63%
................................................................................
3 years -0.58% -0.81% 0.17% 1.31%
................................................................................
Since Inception -5.91% -5.99% -5.57% -4.56%
................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
................................................................................
12-month income distributions
per share - - - $0.01
................................................................................
12-month capital gains per share $0.25 $0.25 $0.25 $0.25
................................................................................
*Adjusted for maximum sales charge.

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LONG TERM GROWTH
- --------------------------------------------------------------------------------

Class A MSCIEMI MSCTEAFE CPI
9/30/94 9,525 10,000 10,000 10,000
4/30/95 7,341 7,788 10,479 10,167
10/31/95 7,701 7,725 10,328 10,288
4/30/96 8,992 8,729 11,710 10,453
10/31/96 8,296 8,121 11,444 10,596
4/30/97 9,424 8,924 11,640 10,723
10/31/97 9,807 7,284 12,007 10,817
4/30/98 10,823 7,544 13,879 10,877
10/31/98 7,946 5,023 13,202 10,964

Comparison of a $10,000 investment in Evergreen Emerging Markets Growth Fund
Class A, versus a similar investment in the Morgan Stanley Capital International
Emerging Markets Index (MSCIEMI), the Morgan Stanley Capital International
Europe, Australasia, and Far East Index (MSCIEAFEI) and the Consumer Price Index
(CPI).

The Morgan Stanley Capital International Emerging Markets Index is an unmanaged
index representing all emerging markets in the MSCI universe.

The Morgan Stanley Capital International Europe, Australasia, and Far East
(EAFE) Index is an unmanaged, capitalization index representing the industry
composition and a sampling of small, medium, and large capitalization companies
from the aforementioned global markets.

3
<PAGE>

Portfolio Manager Interview

How did the Fund perform?

The Fund's absolute performance was disappointing despite the fact it surpassed
the relevant benchmarks by wide margins. It was a very difficult year for
emerging markets. For the 12 months that ended on October 31, 1998, the
Evergreen Emerging Markets Growth Fund Class A shares had a total return of
- -19.0%. The Class B and C shares both had returns of -20.0%, while Class Y
shares had a return of -18.6%. These returns are unadjusted for any sales
charges, if applicable. For the same 12-month period, the Morgan Stanley Capital
International Emerging Markets Index had a return of -31.0%, while the average
emerging markets mutual fund had a return of -32.0%, as measured by Lipper,
Inc., an independent monitor of mutual fund performance. The Fund finished the
period in the top decile of all emerging markets funds, according to Lipper,
Inc./1/

Portfolio Characteristics
- --------------------------------------------------------------------------------
(as of 10/31/98)

Total Net Assets $58,693,991
................................................................................
Number of Holdings 43
................................................................................

What caused the difficult environment we saw during the past year?

A liquidity crisis hit the emerging markets, making it extremely difficult to
sell securities or refinance debt. The problems were complex and difficult to
sort out. Many Asian countries had very large current account deficits - or
balance of payment deficits - which put pressure on their currencies. When these
countries were forced to devalue their currencies, any company in those
countries saw the dollar-based debt service for its outstanding loans increase
substantially and instantly, putting tremendous pressure on the companies.
Investors were scared away. An important aspect of the growth in emerging
markets had been the flow of foreign investments - either direct investments by
operating companies or indirect investments by foreign investment funds. These
flows slowed significantly, and that has had a great impact on the emerging
markets. Moreover, commodity markets, which are important to some emerging
nations, were weak throughout the period.

To deal with the liquidity crisis, the governments of many emerging market
countries had to enter into agreements with the International Monetary Fund to
increase monetary discipline and tighten belts domestically. This
belt-tightening, while it may have been necessary, held back economic growth.
Growth in emerging markets is expected to continue to be slow looking ahead to
1999.

During this liquidity crunch, international investors often discovered there
were very few, if any, buyers for the securities they wanted to sell. This meant
investors often were forced to sell shares of stocks in other nations that did
not have a problem simply because there was more liquidity. This was one of the
reasons the contagion effect passed from country to country, and region to
region.

Asian markets, where the problems started, were the most volatile. Latin America
was also affected in a major way, as were the developing European nations, in
part because of the reaction to the Russian devaluation and bond default in
August 1998.

Volatility was extreme. Markets routinely rose or fell by 3% to 5% in a single
day. There were significant declines in most emerging markets. There was no
place to hide if you were an emerging market investor. That is why we held a
large cash position in the portfolio.

/1/Source:Lipper, Inc. an independent mutual fund rating company. The rankings
are based on total return and do not include the effect of a sales charge. For
the 1- and 3-year periods ended October 31, 1998, the Fund's Class A shares
ranked 5 of 151 and 4 of 86 emerging markets funds. Past performance is no
guarantee of future results.

4
<PAGE>

Portfolio Manager Interview

Geographical Allocation:
Top 10 Countries
- --------------------------------------------------------------------------------
(based on 10/31/98 net assets)

Portugal 8.1%
................................................................................
Mexico 7.1%
................................................................................
Greece 7.1%
................................................................................
Hungary 7.1%
................................................................................
Morocco 5.6%
................................................................................
Brazil 5.1%
................................................................................
Czech Republic 4.6%
................................................................................
Egypt 4.0%
................................................................................
South Africa 3.7%
................................................................................
Singapore 2.3%
................................................................................
Other 6.7%
................................................................................
Cash & Cash Equivalents 38.6%
................................................................................
(portfolio composition subject to change)

Has the situation changed?

More recently, we have seen signs of stability in emerging markets. The outlook
appeared to start improving following the interest rate reductions by the U.S.
Federal Reserve Board in September and October. (The Federal Reserve Board also
reduced short-term rates for a third time in mid-November, after the end of the
fiscal year.)

Some emerging market nations have taken action on their own to deal with their
economic problems. Hong Kong's market stabilized only when the government
stepped in and bought between $15 billion and $20 billion in securities.
Malaysia's market stabilized when the government imposed currency controls to
block foreign investors from taking money out of the economy. (The Fund was not
directly affected, as it had no investments in Malaysia at the time.)
Indonesia's market became more stable when the government of President Suharto
resigned. Other countries, such as Brazil, stabilized their situation by raising
interest rates to extremely high levels. To some extent, we are heartened by
this nascent improvement we've seen recently. We still worry about the
possibility of other shoes dropping, however.

In this volatile and changing environment, what have been your principal
strategies?

We have been very conservative. At various times during the past year, we have
had very high cash levels in the portfolio - once as high as 65% of net assets.
The target cash allocation at the end of the fiscal year on October 31, 1998,
was about 38% of assets.

We continue to have extremely low exposure to Asia, and we are under-weighted in
Latin America, although we have some investments there. Our major emphasis has
been in the developing nations of Europe, the Middle East and Africa, known as
the EMEA nations. These include countries such as Portugal, Greece, Hungary,
South Africa, Egypt and Morocco. This region has shown substantially more
stability than either Latin America or Asia. We have had only one investment in
Russia, and that was held only briefly.

In terms of industries, our largest area of emphasis has been in
telecommunications, at about 25% of net assets. We regard this as a defensive
investment in a growth industry in most emerging markets. Banks and financial
services, combined, totaled 8% of net assets, primarily in the EMEA nations.

5
<PAGE>

Portfolio Manager Interview

Top 10
Equity Holdings
------------------------------
(based on 10/31/98 net assets)

Telefonos de Mexico SA, ADR 4.8%
................................................................................
Matav RT, ADR 4.8%
................................................................................
Cseke Radiokomunikace AS, GDR, 144A 4.6%
................................................................................
Telecommunicacoes Brasilieras SA, ("Telebras") ADR 4.3%
................................................................................
OTE Greek Telecom, GDR 2.9%
................................................................................
Magyar Olaj Es Gas 2.3%
................................................................................
Alpha Credit Bank, GDR 2.2%
................................................................................
Filmes Lusomundo 2.1%
................................................................................
Transportadora de Gas del Sur SA, ADR ("TGS") 2.0%
................................................................................
Omnium Nord Africian, SA 2.0%
................................................................................
(portfolio composition subject to change)

What are some examples of the types of companies in which you have invested?

In the telecommunications industry, two of the Fund's largest holdings were
Telebras in Brazil and Matav in Hungary, both telephone utilities. In Egypt, we
found an interesting investment in Al Ahram, a brewing company that is producing
a non-alcoholic beer for the Moslem world. Another defensive investment is in
the Rembrandt Group, a South African tobacco company.

Top 5 Industries
------------------------------
(based on 10/31/98 net assets)

Telecommunications 25.2%
................................................................................
Beverages & Tobacco 7.9%
................................................................................
Banking 5.9%
................................................................................
Utilities-Electric, Gas & Water 5.2%
................................................................................
Building Materials & Components 2.8%
................................................................................

What is your outlook for the emerging markets?

We believe emerging markets will continue to be very volatile, so we will be
more defensively positioned than the average emerging markets fund. Because of
the volatility, we have had to be more focused and continued to actively trade,
in order to protect the portfolio's principal. We will try to avoid major
problem areas, rather than manage through them.

A purely stock-picking approach also doesn't work. You could have owned the best
stock in Thailand, but if the currency went down 40% and the stock market went
down 40%, you could still have lost 80% in short order.

We have outperformed the indices and the mutual fund averages by concentrating
on the top-down, macro-economic issues such as currency, economic growth and
governmental policy. Our healthy respect for risk has served us well. Our
emerging markets team consists of five professionals who have lived many years
in emerging market countries in Asia, Latin America and the Middle East.
Collectively, our team members spend more than 40 "people weeks" per year
visiting companies in emerging markets. These trips help us find interesting
companies within emerging markets that have growth opportunities and, we
believe, are rock solid.

6
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EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------

Fund at a Glance as of October 31, 1998

The geographical emphasis was largely consistent with the Fund's allocation a
year ago, concentrating on North America and Western Europe.

Portfolio
Management
- --------------------------------------------------------------------------------

[PHOTO OF STEPHEN A. LIEBER APPEARS HERE]

Stephen A. Lieber
Tenure: November 1995

[PHOTO OF EDWIN D. MISKA APPEARS HERE]

Edwin D. Miska
Tenure: November 1995

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CURRENT INVESTMENT STYLE/1/
- --------------------------------------------------------------------------------

/1/Source: 1998 Morningstar, Inc.

Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. The MSCIWI is an unmanaged index and does not include
transaction costs associated with buying and selling securities or any
management fees. The CPI is a commonly used measure of inflation and does not
represent an investment return. It is not possible to invest directly in an
index.

- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS*
- --------------------------------------------------------------------------------
Class A Class B Class C Class Y
Inception Date 6/3/96 6/3/96 6/3/96 11/1/95
................................................................................
Average Annual Returns
................................................................................
1 year with sales charge 4.60% 4.19% 8.05% n/a
................................................................................
1 year w/o sales charge 9.82% 9.19% 9.05% 10.23%
................................................................................
Since Inception 10.34% 10.74% 11.71% 14.95%
................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
................................................................................
12-month capital gain
distributions per share $0.06 $0.06 $0.06 $0.06
................................................................................
*Adjusted for maximum sales charge.

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LONG TERM GROWTH
- --------------------------------------------------------------------------------

Class A MSCIWI CPI
6/3/96 9,525 10,000 10,000
10/31/96 10,048 10,271 10,116
4/30/97 10,573 11,071 10,237
10/31/97 11,543 12,043 10,327
4/30/98 13,526 14,340 10,384
10/31/98 12,677 13,932 10,467

Comparison of a $10,000 investment in Evergreen Global Leaders Fund Class A,
versus a similar investment in the Morgan Stanley Capital International World
Index (MSCIWI) and the Consumer Price Index (CPI).

The Morgan Stanley Capital International World Index is a broad-based securities
market index of about 1,500 securities from major developed markets around the
world. The index is unmanaged and includes North America, Europe, and the
Pacific Rim.

7
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EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------

Portfolio Manager Interview

How did the Fund perform?

The Evergreen Global Leaders Fund performed well during a challenging year. For
the 12 months that ended on October 31, 1998, the Fund's Class A shares had a
return of 9.8%, while B shares had a 9.2% return and C Shares had a 9.1% return.
During the same 12-month period, the Fund's Class Y shares had a return of
10.2%. These returns are unadjusted for any sales charges, if applicable. During
the same period, the average return in the Global mutual funds category was
5.3%, as measured by Lipper, Inc., an independent monitor of mutual fund
performance, while the return of the Morgan Stanley Capital International World
Stock Index was 15.3%.

Portfolio Characteristics
- --------------------------------------------------------------------------------
(based on 10/31/98 net assets)

Total Net Assets $354,925,479
................................................................................
Number of Holdings 137
................................................................................

We believe our conservative investment style, which included limited exposure to
emerging markets, helped us outperform the Lipper fund peer group. The Fund
trailed the Morgan Stanley Index because our long-term discipline to limit
weightings in individual countries led to lower exposure to countries such as
the United States and the United Kingdom, which were the market leaders during
the fiscal year.

How would you describe the investment environment during the year?

It certainly was a challenging environment, as turmoil in markets in Asia,
Russia and other parts of the emerging world increased investor concerns about
the possibility of a contagion spreading to the developed world. This
uncertainty supplanted the optimism that dominated the investment picture in the
United States and Western Europe for much of the first part of the fiscal year
that began on November 1, 1997. U.S. corporate earnings continued to grow,
although at a slowing rate. For most of the fiscal year, European companies were
spurred on by a confluence of favorable factors, including European economic
union, corporate re-structuring, low interest rates and favorable currency
trends. These factors led to gains in corporate profits and improved
productivity in Europe.

More recently, uncertainty about the direction of markets has been exacerbated
by growing problems within financial institutions, including banks, brokerages
and hedge funds, and troubles in political systems, particularly in Russia and
the Far East. This has led to the onset of increased volatility in virtually
every financial center, creating a difficult environment for the rational
conduct of the markets. As a result, we have witnessed both a flight to quality
in investments and a repatriation of money to its domestic origins.

What were your primary asset allocation strategies within this environment?

The geographical emphasis was largely consistent with the Fund's allocation a
year ago, concentrating on North America and Western Europe. We have accentuated
the areas of the globe where economic growth is expected to continue, while
avoiding those areas experiencing the most dramatic turmoil, most notably the
Far East. We also have created a modest cash position, which we intend to use
opportunistically to take advantage of opportunities created by market turmoil.
The absence of any investments in Latin America is consistent with the Fund's
strategy to emphasize those countries and companies that have demonstrated
sustained economic leadership.

8
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EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------

Portfolio Manager Interview

Geographical/Asset
Allocation
------------------------------
(based on 10/31/98 net assets)

North America 41.0%
................................................................................
Europe 43.7%
................................................................................
Far East 8.3%
................................................................................
Cash & Cash Equivalents 7.0%
................................................................................
(Portfolio composition subject to change)

How did investments in the U.S. perform?

The performance in the United States was good, in line with the overall market.
We continued the long-term strategy of investing in leading companies throughout
the economy, emphasizing both quality and diversification. The Fund's
best-performing U.S. stock was also the largest domestic holding--Wal-Mart
Stores, Inc., which had a return of 96.4% for the 12 months. The next best
performing company was SunAmerica, Inc., an investment management, brokerage and
annuity company that benefited from a takeover offer from AIG. SunAmerica rose
94.6% during the year. Other major contributors to performance included:
Schering-Plough Corp., the pharmaceutical company, which rose 83%; Cisco
Systems, Inc., the network and Internet company, which rose 73.1%; and GAP,
Inc., the retailer, which had a return of 69.2%.

Top 10 Equity Holdings
------------------------------
(based on 10/31/98 net assets)

RWE AG 2.8%
................................................................................
Seven-Eleven Japan Co., Ltd. 2.5%
................................................................................
Nintendo Co., Ltd. 2.1%
................................................................................
Wal-Mart Stores, Inc. 2.0%
................................................................................
SAP AG 1.8%
................................................................................
General Electric Co. 1.7%
................................................................................
Microsoft Corp. 1.7%
................................................................................
Benetton Group SpA ADS 1.7%
................................................................................
Bombardier, Inc., Cl. B 1.7%
................................................................................
Hugo Boss AG 1.5%
................................................................................
(portfolio composition subject to change)

How did investments outside the U.S. perform?

The Fund had positive returns, with the better performing investment returns
occurring in Europe, which we emphasized. The Fund's top-performing countries
were: Belgium (54.0%); France (29.7%); Spain (26.5%); The Netherlands (22.7%);
and Sweden (22.6%). The Asian investments, where we were under-weighted, lagged.

The best performing foreign investment was Vodaphone Group, a mobile phone
operator in the United Kingdom, which produced a 144.8% return for the Fund for
the 12 months. The second best performance came from Hennes & Mauritz, a Swedish
clothing retailer, which rose 71.6%. Other strong contributors included UCB, the
Belgian pharmaceutical and specialty chemicals company, which had a 69.0%
return; Synthelabo, a French pharmaceutical company, which rose 61.8%; and
Wolters Kluwer, a professional and scientific publisher based in The
Netherlands, which posted a return of 57.4%.

9
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- --------------------------------------------------------------------------------
EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------

Portfolio Manager Interview

Top 5 Industries
------------------------------
(based on 10/31/98 net assets)

Healthcare Products & Services 10.0%
................................................................................
Information Services & Technology 9.1%
................................................................................
Finance & Insurance 8.9%
................................................................................
Retailing & Wholesale 8.9%
................................................................................
Food & Beverage Products 5.2%
................................................................................

What is your outlook?

We will continue to follow our long-term investment disciplines, seeking to
invest in the best 100 companies in the world. We use a strong quantitative,
fundamental and valuation review, combined with an active management discipline
to sell those stocks that no longer meet our criteria.

In the coming year, we believe selectivity among individual companies and
markets will be the keys to performance. A slowdown in the rate of economic
growth looms on the horizon for many of the markets in which your Fund invests.
The rising tide of money flow, which has supported the prices of stocks
worldwide, appears to be abating. Catalysts such as the European Union and the
launch of the single currency, the euro, while strong macro forces, will not be
sufficient to overcome weak profit reports, we believe. Companies that
consistently demonstrate sustained profit leadership and project visible growth
in any economic environment will be the likely candidates for out-performance,
we believe. In an environment of uncertainties, the companies with superior
managements and strong financial balance sheets will be better able to
capitalize on market opportunities. We intend to identify those companies and
include them in your portfolio.

Despite the demanding environment of the past year, we are satisfied with the
Fund's overall performance and remain confident. We believe we are prudently and
opportunistically positioned for the challenges ahead.

10
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Global Opportunities Fund
- --------------------------------------------------------------------------------
Fund at a Glance as of October 31, 1998

Portfolio
Management
- --------------------------------------------------------------------------------

[PHOTO OF GARY CRAVEN APPEARS HERE]
Gary Craven
Tenure: January 1998

[PHOTO OF GILMAN GUNN APPEARS HERE]
Gilman Gunn
Tenure: June 1997

- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
- --------------------------------------------------------------------------------

[GRAPHIC Morningstar's Style Box is based on a portfolio date as of
APPEARS HERE] 9/30/98.

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.

/1/Source: 1998 Morningstar, Inc.

Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. The MSCIWI is an unmanaged index and does not include
transaction costs associated with buying and selling securities or any
management fees. The CPI is a commonly used measure of inflation and does not
represent an investment return. It is not possible to invest directly in an
index.

- --------------------------------------------------------------------------------
Performance and Returns*
- --------------------------------------------------------------------------------
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
................................................................................
1 year with sales charge -16.58% -17.11% -13.84% n/a
................................................................................
1 year w/o sales charge -12.42% -13.06% -13.13% -12.45%
................................................................................
5 years 2.70% 2.56% 2.89% --
................................................................................
10 years 9.33% -- -- --
................................................................................
Since Inception 9.08% 7.15% 7.32% -5.23%
................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
................................................................................
12-month capital gain
distributions per share $1.53 $1.53 $1.53 $1.53
................................................................................
*Adjusted for maximum sales charge.

- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------

[LINE GRAPH APPEARS HERE]

Class A MSCIWI CPI
10/31/88 9,525 10,000 10,000
10/31/89 10,339 11,396 10,449
10/31/90 10,091 10,172 11,107
10/31/91 13,091 11,844 11,431
10/31/92 13,294 11,291 11,797
10/31/93 20,339 14,416 12,122
10/31/94 22,258 15,594 12,438
10/31/95 25,760 17,158 12,787
10/31/96 26,726 20,047 13,170
10/31/97 27,862 23,505 13,444
10/31/98 24,402 27,192 13,627

Comparison of a $10,000 investment in Evergreen Global Opportunities Fund Class
A, versus a similar investment in the Morgan Stanley Capital International World
Index (MSCIWI), and the Consumer Price Index (CPI).

11
<PAGE>

Portfolio Manager Interview

How did the Fund perform during the fiscal year?

The Fund's performance was consistent with returns of small companies around the
world. Small cap stocks tended to lag large company stocks this year. For the
12-month period ended October 31, 1998, the Evergreen Global Opportunities Fund
Class A shares had a total return of -12.4%. Class B and C shares both had total
returns of -13.1%, while Class Y shares had a return of -12.5%. These returns
are unadjusted for any applicable sales charges. During the same period, the
Russell 2000 Index, a common benchmark for the U.S. small company stock market,
had a return of -11.8%, while the average global small company stock fund had a
return of -10.2%, according to Lipper, Inc., an independent monitor of mutual
fund performance.

Portfolio Characteristics
- --------------------------------------------------------------------------------
(as of 10/31/98)

Total Net Assets $204,165,709
................................................................................
Number of Holdings 183
................................................................................

How have the Fund's assets been allocated, between the U.S. and foreign markets?

G. Craven: During the last six weeks of the fiscal year, the allocation to the
United States was raised from about 27% of net assets to approximately 39%. We
also have moved from an extremely defensive position at the height of market
volatility this past summer-when almost 25% of assets were in cash and cash
equivalents-to a cash position of about 11% at the end of the year. As Gilman
Gunn will discuss, outside of the United States our major focus of attention
remains on Western Europe.

We have seen changes in the environment during the course of the year, when the
real and perceived weakening of economies throughout the world resulted in a
powerful fall in stock prices during the summer of 1998. These problems started
in Asia and spread to Eastern Europe, South America, Western Europe and the
United States. Since the summer, a number of corrective steps have been taken by
monetary and fiscal policy-makers around the world to stabilize economies and
restore economic growth. These include short-term interest rate reductions in
the United States, economic reforms in emerging nations such as Brazil, and
changes in fiscal and economic policies in Japan to stimulate growth. As a
result, late in the fiscal year, a potentially more positive outlook emerged,
particularly in the United States.

Geographical Allocation
- --------------------------------------------------------------------------------
(based on 10/31/98 net assets)

United States 38.7%
................................................................................
United Kingdom 13.7%
................................................................................
Switzerland 6.8%
................................................................................
France 6.3%
................................................................................
Japan 4.5%
................................................................................
Germany 3.8%
................................................................................
Netherlands 3.2%
................................................................................
Sweden 2.3%
................................................................................
Ireland 2.1%
................................................................................
Italy 2.1%
................................................................................
Australia 1.5%
................................................................................
Spain 1.3%
................................................................................
Other 2.4%
................................................................................
Cash & Cash Equivalents 11.3%
................................................................................

12
<PAGE>

Portfolio Manager Interview

What has been the investment environment for the U.S. small company stock market
during the year?

G. Craven: It was a roller coaster year. The stocks of technology and growth
companies tended to do well in the spring. As investors perceived a slowing of
economic growth around the world, however, it became a very tough environment
for cyclical companies and manufacturing companies throughout the summer. Small
company stock prices fell dramatically. The net effect was that by the beginning
of October, small company stock valuations-in relation to large company stock
valuations-were the most attractive they had been in 20 years. Small company
stocks then started to move up in October.

What strategies and types of investments have you used in managing the U.S.
small company portfolio?

G. Craven: During the year, we moved the portfolio more toward higher quality
companies, with less in cyclical industries, including technology. We also
allocated more to cash during the summer. By higher quality companies, I am
referring to firms with strong competitive positions and better business
characteristics, including strong balance sheets and excellent managements.

Toward the end of the year, as we saw more positive signals in the market, we
increased the exposure to technology, primarily semi-conductor-related and
telecommunications-related companies. The prices of these companies had gone
down and we saw very strong long-term growth trends that made the lower prices
appear attractive.

The semiconductor industry, while somewhat cyclical, still benefits from
continued demand driven by the development of increasingly faster and smaller
semi-conductor chips and their more pervasive use throughout the economy. I
think the growth outlook is very powerful, and valuations are extremely
attractive. Among the companies in which we have increased our investments are
Sipex, Artisan Components and Silicon Graphics.

Telecommunications is probably the strongest growth industry in the world. Data
and voice transmissions are increasing at a tremendous rate, and companies that
address the needs of telecommunications have very strong earnings prospects.
Among the companies in which we have invested are PMC-Sierra, Vanguard Cellular
(which has been acquired) and Premier Technologies.

We also have invested very carefully in the Internet, emphasizing companies
involved in the actual infrastructure or operation of the Internet. We believe
this is a lower-risk way to invest in the worldwide web because these companies
depend primarily on the level of Internet traffic rather than on the popularity
of any specific website. Among the examples of investments are Broadvision,
which enables corporations to have their own websites, and Exodus, which
provides the services to transmit and to store data in a secure manner.

In addition to these areas of emphasis, we have reduced our holding in financial
stocks because of growing concerns about credit-worthiness of their customers.
Among the stocks that we eliminated were E-Trade, an electronic securities
trading company; Capital Re, a reinsurance company; and Freedom Securities, a
brokerage firm.

13
<PAGE>

Portfolio Manager Interview

What is your outlook in the U.S. small company stock market?

G. Craven: We think we have turned the corner on the domestic side. The market
declines we have seen before October were equal to the biggest declines of the
past 20 years. As a result, we think the opportunity for the market advancing is
very strong. Moreover, because of the buying opportunities created by the market
declines, we think we have assembled the strongest portfolio of domestic
companies in more than two years. In addition, the market environment has been
helped by the fiscal and monetary policies of the federal government. To be
sure, there still are uncertainties about the economy and there still are
problems that could disrupt the earnings outlooks for some companies. In spite
of these uncertainties, we are finding companies and industries with promising
growth prospects that have the potential to deliver strong returns for
investors.

Top 5 Industries
------------------------------
(based on 10/31/98 net assets)

Business & Public Services 16.2%
................................................................................
Health & Personal Care 7.1%
................................................................................
Wholesale & International Trade 5.7%
................................................................................
Technology 5.5%
................................................................................
Food & Household Products 5.4%
................................................................................

Turning to you Gilman, what was the outlook like for small company stocks
outside the United States, and how did that affect strategy?

G. Gunn: I think it is fair to say that small company stocks were out of favor
during much of the past year throughout the world. During the first several
months of the year in Europe, however, there was a powerful rally in large
company stocks that helped bring up the value of small company stocks, even
though they trailed the large cap stocks.

We heavily weighted the portfolio in favor of European small-cap stocks earlier
in the year because they represented the best value. After the fears of a global
economic slowdown affected the European markets, however, we shifted assets to
the United States. We believed that U.S. small cap stocks had been hit
unmercifully and as a result had become very attractive values. At the same
time, the European small cap stocks that had moved up in sympathy with large cap
stocks appeared to offer less attractive values in comparison to the United
States. At the same time, we believe Europe remains home to the best small
company stock opportunities outside the U.S.

The fund's asset allocation still has a heavy concentration in Western Europe.
At the close of the fiscal year, 46% of assets were invested in Western Europe,
with 14% in the United Kingdom, and 6% in France and another 7% in Switzerland.
Near the end of the year, we increased the allocation to Japan from about 4% to
5% both as a diversification step and because the Japanese government has
started taking some limited steps to revive the economy. Very little money was
invested in emerging markets.

Top 10 Equity Holdings
----------------------
(based on 10/31/98 net assets)

Boewe Systec AG 2.3%
................................................................................
Aegis Group Plc 2.1%
................................................................................
Lindt & Spruengli AG 1.6%
................................................................................
Capita Group Plc 1.4%
................................................................................
Laurus NV 1.2%
................................................................................
DCC Plc 1.2%
................................................................................
Compass Group 1.2%
................................................................................
Mediolanum SpA 1.1%
................................................................................
CSG System International, Inc. 1.0%
................................................................................
Ashtead Group Plc 1.0%
................................................................................
(portfolio composition subject to change)

14
<PAGE>

Portfolio Manager Interview

In what types of companies have you invested outside the United States?

G. Gunn: We try to complement the holdings in the U.S. portfolio, which often
are in technology-related industries. Outside the United States, we tend to
invest in small, stable businesses with some predictability and stability to
them. They tend to be lower tech than the U.S. holdings.

At the end of the fiscal year, the largest holding was Boewe Systec, a German
company, which is one of the world's larger manufacturers of high-speed,
automated mailing systems. These systems automatically fold paper and stuff them
into the envelopes for mass mailings.

Another representative holding was Lindt & Spruengli, a Swiss maker of fine
chocolate candies. We are starting to see this company's chocolates in specialty
stores in the United States. A third company is Aegis Group PLC, based in the
United Kingdom. This company is one of the largest media-buying companies in
Europe.

What is the outlook for foreign small company stocks?

G. Gunn: For small cap stocks to do well anywhere, you need low interest rates,
an expanding economy, and a rising stock market. In Europe, we have lower
interest rates than in the U.S., so that's a positive. We also have GDP growth
estimates declining, however, and stock markets that are showing more
volatility. As a result, it will continue to be a volatile period.

Our job, in this environment, is to make sure we find the best small company
stocks in relatively stable businesses and where they have niche strength. We
believe if we own these types of stocks, we have the opportunity to do well
provided interest rates and the economic environment cooperate.

Small capitalization investing typically carries additional risks since smaller
companies generally have a higher risk failure. Although it may offer the
potential for greater long term results, it may also result in greater price
volatility.

15
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
International Growth Fund
- --------------------------------------------------------------------------------

Fund at a Glance as of October 31, 1998

We have been relatively cautious, concentrating the Fund's investments where
economic growth is expected to be strongest and in industries that are fairly
defensive in nature.

Portfolio
Management
---------------------------------

[PHOTO OF GILMAN GUNN APPEARS HERE]

Gilman Gunn
Tenure: January 1991

- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
- --------------------------------------------------------------------------------

Morningstar's Style Box is based on a portfolio date as of
[GRAPHIC 9/30/98.
APPEARS HERE]
The Equity Style Box placement is based on a fund's
price-to-earnings and price-to-book ratio relative to the
S&P 500, as well as the size of the companies in which it
invests, or median market capitalization.

/1/Source: 1998 Morningstar, Inc.

- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS*
- --------------------------------------------------------------------------------
Class A Class B Class C Class Y
Inception Date 1/20/98 9/6/79 3/06/98 3/09/98
................................................................................
Average Annual Returns
................................................................................
1 year with sales charge - 5.05% - -
................................................................................
1 year w/o sales charge - 9.35% - -
................................................................................
5 years - 8.50% - -
................................................................................
10 years - 6.19% - -
................................................................................
Since Inception** 3.42% 10.46% -3.72% -3.62%
................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
................................................................................
12-month distributions per share - $0.33 - -
................................................................................
12-month capital gain
distributions per share - $1.54 - -
................................................................................

* Adjusted for maximum sales charge.
** Represents cumulative returns for Class A, C, and Y shares; these classes
opened in 1998 and do not have annual returns yet.

- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------

[LINE GRAPH APPEARS HERE]

Class B MSCIEAFEI CPI
10/31/88 10,000 10,000 10,000
10/31/89 10,213 10,840 10,449
10/31/90 8,749 9,479 11,107
10/31/91 9,312 10,172 11,431
10/31/92 9,637 8,860 11,797
10/31/93 11,960 12,216 12,122
10/31/94 12,762 13,484 12,438
10/31/95 13,042 13,475 12,787
10/31/96 14,407 14,930 13,170
10/31/97 16,667 15,664 13,444
10/31/98 18,225 17,223 13,627

Comparison of a $10,000 investment in Evergreen International Growth Fund Class
B, versus a similar investment in the Morgan Stanley Europe, Australia, and Far
East Index (MSCIEAFEI) and the Consumer Price Index (CPI).

The Morgan Stanley Europe, Australasia, and Far East (EAFE) Index is an
unmanaged, capitalization index representing the industry composition and a
sampling of small, medium, and large capitalization companies from the
aforementioned global markets.

Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. The MSCIEAFEI is an unmanaged index and does not
include transaction costs associated with buying and selling securities or any
management fees. The CPI is a commonly used measure of inflation and does not
represent an investment return. It is not possible to invest directly in an
index.

16
<PAGE>

Portfolio Manager Interview

How did the Evergreen International Growth Fund perform for the fiscal year?

The Fund performed well in a difficult environment. For the 12 months that ended
on October 31, 1998, the Fund's Class B shares had a total return of 9.4%,
unadjusted for any applicable sales charges. By comparison, the Morgan Stanley
Capital International EAFE Index, a commonly used benchmark for foreign stock
performance, had a return of 9.7% and the average diversified international
mutual fund had a return of 4.1%, according to Lipper Analytical Services, Inc.,
an independent monitor of mutual fund performance. The Fund did better than most
other international stock funds because we had a higher concentration in Europe,
and less in Japan and emerging markets. We had less than 1% of net assets in
emerging markets. During the past year, it didn't take much in emerging markets
to affect a fund's performance adversely. The Fund is managed for those who want
some international diversification, but with less risk than the typical
international fund. We try to achieve consistent results.

Portfolio Characteristics
- --------------------------------------------------------------------------------
(as of 10/31/98)

Total Net Assets $635,686,086
................................................................................
Number of Holdings 193
................................................................................

What was the investment environment like?

Investment conditions became more difficult as the year progressed, particularly
after the Russian crisis unfolded, and the government devalued the currency and
defaulted on part of its debt. The Russian collapse drew attention back to the
problems in emerging markets and their potential effects on other economies. The
economic problems of the emerging markets were complex, and will be difficult to
sort out. The devaluations in many emerging markets, especially in Asia, have
created major burdens for those companies with dollar-based debt. The weaknesses
in the commodity markets added to the problems, because the economies of many
emerging nations are based on commodities. An important aspect of the growth in
emerging markets had been the flow of foreign investments, either direct
investments by operating companies or indirect investments by foreign investment
funds. These flows have slowed significantly and that has had a great impact on
the emerging markets.

Western Europe, which had an optimistic outlook for much of the fiscal year, has
also been affected. Some European countries are directly exposed to the emerging
markets. European banks, which are exposed in varying degrees to emerging
markets, represent a large part of the Morgan Stanley EAFE Index. In addition,
the economic problems in the emerging markets have created more low-cost

17
<PAGE>

Portfolio Manager Interview

competition for many European companies, including companies that thought this
competition would not be a factor. As a result, expectations for European
economic growth and earnings growth of European companies have been reduced.

Japan has suffered through a severe recession. The Japanese government recently
has started to make some small steps to help the economy grow and to correct the
problems in its banking system.

What have been your principal strategies in this environment?

We have been relatively cautious, concentrating the Fund's investments where
economic growth is expected to be strongest and in industries that are fairly
defensive in nature. We also tended to have greater cash levels than we do
normally. The Fund ended the fiscal year with a cash level of about 18%.

The Fund's greatest concentration has been in Europe, which we think is the best
foreign market in which to be invested, even if growth estimates and earnings
expectations are being lowered. About 73% of net assets are invested in Europe
at the end of the fiscal year.

Top 10 Countries
------------------------------
(based on 10/31/98 net assets)

United Kingdom 14.6%
................................................................................
France 14.0%
................................................................................
Germany 10.0%
................................................................................
Japan 8.6%
................................................................................
Netherlands 7.7%
................................................................................
Switzerland 6.9%
................................................................................
Sweden 5.8%
................................................................................
Italy 4.7%
................................................................................
Australia 2.2%
................................................................................
Spain 2.0%
................................................................................

The portfolio weighting in Japan, the world's second largest economy after the
United States, was recently increased to 9%, largely as a diversification
measure and because that nation is beginning to take some positive steps, as
mentioned earlier.

In individual company selection, we have focused on relatively defensive
industries. The Health & Personal Care industry, which includes pharmaceuticals,
had the highest weighting at 14% of net assets. Banks, at 6%, was another top
industry. Here we concentrated on banks with little emerging market exposure.
Other industries we emphasized were Food & Household Products, Business & Public
Services and Energy Sources.

Top 5 Industries
---------------------------------
(based on 10/31/98 of net assets)

Health & Personal Care 14.3%
................................................................................
Food & Household Products 7.9%
................................................................................
Banking 6.1%
................................................................................
Energy Sources 5.2%
................................................................................
Business & Public Services 4.9%
................................................................................

What are some examples of your investments in specific companies?

The Fund's largest equity holding was Nestle's, the Swiss food manufacturer, at
more than 2% of net assets. Nestle's in many ways mirrors the blue chip stocks
we emphasize, and has been the type of consistent performer we like to have in
the portfolio. Although Nestle's is exposed to the emerging markets, we like it
because it is dominant in its businesses. It has a broad array of very strong
brands, a good balance sheet, and an excellent distribution system around the
world.

Another interesting company is Suez Lyonnais Des Eaux, a French company for
which there is no equivalent in the U.S. Suez Lyonnais, which represented about
2% of

18
<PAGE>

Portfolio Manager Interview

net assets, is a utility conglomerate with a very large market share of
ownership of French water systems. The company recently has been acquiring water
systems and electric power systems around the world. Suez Lyonnais has been a
consistent performer that has achieved impressive growth by acquiring privatized
utility systems that are monopolies in their markets.

A third example, ISS International, is one of the Fund's smaller investments,
which we have made to complement and give diversification to the larger, blue
chip names that the Fund emphasizes. ISS International is a Danish company that
specializes in institutional cleaning, primarily offices and corporate
headquarters. It is growing rapidly, both organically and through acquisitions.

Top 10 Holdings
------------------------------
(based on 10/31/98 net assets)

Nestle SA 2.2%
................................................................................
Suez Lyon Eaux 2.0%
................................................................................
Unilever NV CVA 2.0%
................................................................................
Rhone-Poulenc SA, Cl.A 1.8%
................................................................................
Telecom Italia SpA 1.7%
................................................................................
Novartis AG 1.7%
................................................................................
Societe Nationale Elf Aquitaine SA 1.5%
................................................................................
Karstadt AG 1.5%
................................................................................
Roche Holding AG 1.4%
................................................................................
Eaux Cie Generale 1.3%
................................................................................
(portfolio composition subject to change)

What is your outlook?

We think the outlook is for more volatility around the world in all types of
asset classes. We believe the type of stocks we own, however, are the kind that
will hold their value in a period of volatility. We concentrate on established
companies, and we diversify to include both growth stocks, purchased at
reasonable prices, and value stocks. This strategy of blending has helped the
Fund during the past five years under present management to return consistent,
above-average returns with lower volatility.

19
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Latin America Fund
- --------------------------------------------------------------------------------

Fund at a Glance as of October 31, 1998

Portfolio
Management
- --------------------------------------------------------------------------------

[PHOTO OF FRANCIS CLORO APPEARS HERE]

Francis Claro
Tenure: October 1996

[PHOTO OF ANTONIO DOCAL APPEARS HERE]

Antonio Docal
Tenure: October 1996

- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
- --------------------------------------------------------------------------------

/1/Source: 1998 Morningstar, Inc.

Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. The MSCIWI and the MSCILAI are unmanaged indices and do
not include transaction costs associated with buying and selling securities or
any management fees. The CPI is a commonly used measure of inflation and does
not represent an investment return. It is not possible to invest directly in an
index.

- --------------------------------------------------------------------------------
Performance and Returns*
- --------------------------------------------------------------------------------
Class A Class B Class C Class Y
Inception Date 11/01/93 11/01/93 11/01/93 3/13/98
................................................................................
Average Annual Returns
................................................................................
1 year with sales charge -30.63% -30.45% -28.42% n/a
................................................................................
1 year w/o sales charge -27.18% -27.60% -27.86% -
................................................................................
3 years -1.18% -1.00% -0.37% -
................................................................................
Since Inception** 0.00% 0.00% 0.24% -30.71%
................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00% n/a
Front End CDSC CDSC
................................................................................
12-month capital gain
distributions per share $2.86 $2.86 $2.86 -
................................................................................

* Adjusted for maximum sales charge.
** Represents cumulative returns for Class Y shares; this class opened in 1998
and does not have an annual return yet.

- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------

[LINE GRAPH APPEARS HERE]

Class A MSCIWI MSCILAI CPI
11/1/93 9,525 10,000 10,000 10,000
4/30/94 9,525 10,281 11,691 10,117
10/31/94 10,212 10,817 14,623 10,261
4/30/95 9,259 11,339 10,170 10,425
10/31/95 9,870 11,902 10,042 10,549
4/30/96 10,910 13,524 11,694 10,719
10/31/96 11,523 13,905 12,385 10,865
4/30/97 14,485 14,989 15,586 10,995
10/31/97 13,733 16,304 15,362 11,091
4/30/98 15,624 19,414 16,586 11,153
10/31/98 10,001 18,862 11,061 11,242

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), Morgan Stanley Capital International Latin America Index
(MSCILAI) and the Consumer Price Index (CPI).

The Morgan Stanley Capital International EMF Latin America Index is an unmanaged
index representing all emerging markets from Latin America.

20
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Latin America Fund
- --------------------------------------------------------------------------------

Portfolio Manager Interview

How did the Fund perform during the fiscal year?

Although the Fund outperformed relevant indices and other Latin America mutual
funds in a difficult period, returns from Latin America were disappointing. For
the 12 months that ended on October 31, 1998, the Evergreen Latin America Fund's
Class A, B and C shares had returns of -27.2%, -27.6% and -27.9%, respectively,
unadjusted for any applicable sales charges. During the year, the average return
of Latin America funds was -32.3%, as measured by Lipper Analytical Services,
Inc., an independent monitor of mutual fund performance, while the Morgan
Stanley Capital International Latin America Index had a return of -28.0%. The
Morgan Stanley Capital International World Index, a global index heavily
dominated by large companies in developed economies, had a return of 15.3% for
the year. Please note, that we have changed the Fund's benchmark from the MSCI
World Index to the MSCI Latin America Index to accurately reflect its investment
objective which changed last year.

Portfolio Characteristics
-------------------------
(as of 10/31/98)

Total Net Assets $43,282,029
................................................................................
Number of Holdings 40
................................................................................

What was the investment environment like?

In the summer of 1998, a number of global economic problems came together to
create a global liquidity crunch that had severe impacts on emerging markets,
including Latin America. Money fled from emerging markets, which lost much of
their liquidity, making it difficult to trade either stocks or bonds or
refinance corporate loans.

This situation began unfolding in July of 1997 when Thailand devalued its
currency, setting off a crisis that spread throughout Asia and created doubts
about other emerging markets. Latin America was briefly affected by investor
concerns about emerging markets in October 1997, but the region's markets
bounced back in a sharp rally through the end of 1997. During the first half of
1998, however, the global situation deteriorated. A major concern was Japan,
which seemed to be heading into a recession. In addition, economic growth in the
United States and Western Europe--the two engines that had been driving the
global economy-appeared to be slowing.

Against this worsening backdrop, the Russian economy plunged into a crisis in
the summer of 1998, and the government defaulted on part of its debt and
devalued Russia's currency. What ensued was the start of a global credit crunch
that had an enormous effect on other emerging markets, which lost a major
portion of their liquidity. This credit crunch, while most severe in emerging
markets, was not confined to them. Corporations in the U.S., for example, found
it more difficult to obtain financing and the stock market and corporate high
yield bond market suffered major corrections as global investors scrambled to
buy the highest quality securities available. The best-performing asset class
during this volatile period was the highest quality security, the U.S. Treasury
Bond.

In the face of this growing global credit crunch, the U.S. Federal Reserve, the
major European central banks, and the International Monetary Fund acted to
restore liquidity. In the U.S., the Federal Reserve lowered short-term interest
rates in both September and October, and other monetary authorities acted
similarly. The G7 industrial nations/1/, including the United States, also acted
to restore liquidity and encourage investors.

/1/ The Group of Seven (G7) major industrial nations is comprised of the United
States, Japan, Germany, Great Britain, France, Italy and Canada.

21
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Latin America Fund
- --------------------------------------------------------------------------------

Portfolio Manager Interview

These concerted actions had a positive influence late in the fiscal year, and
equity markets in Latin America actually recovered, gaining 50 to 60% off the
bottom that was hit on September 10, 1998, as money again became available in
the region's markets.

Top 5 Industries
------------------------------
(based on 10/31/98 net assets)

Telecommunications 14.7%
................................................................................
Utilities -- Electric, Gas & Water 8.1%
................................................................................
Merchandising 4.8%
................................................................................
Beverages & Tobacco 4.8%
................................................................................
Health & Personal Care 4.0%
................................................................................

In light of these unusual conditions, what strategies did you pursue?

We adjusted our strategies because of the volatility and the downdraft in the
markets. We concentrated on the most liquid -- or easily tradable--securities,
and we reduced the total number of securities in the portfolio. We also
concentrated on defensive sectors, such as telephone companies, utilities and
non-durable consumer goods, including foods. We emphasized companies with strong
balance sheets, and little or no foreign debt, and we were quick to get rid of
any stock at the first sign of company trouble or deterioration of earnings
outlook. We focused on the most liquid markets, primarily Brazil, Mexico and
Argentina. For most of the year, we had few or no investments in smaller markets
such as Peru, Venezuela, Colombia and Chile.

Finally, we substantially increased our cash holdings when we thought it
necessary. In fact, at the end of the fiscal year, more than 40% of net assets
were invested in cash, although much of that money was put to work early in the
new fiscal year.

Geographical/Asset
Allocation
------------------------------
(based on 10/31/98 net assets)

Mexico 24.8%
................................................................................
Brazil 23.1%
................................................................................
Argentina 5.6%
................................................................................
Peru 1.3%
................................................................................
Chile 0.5%
................................................................................
Cash & Cash Equivalents 44.7%
................................................................................
(Allocations are subject to change)

Brazil and Mexico are the region's largest markets. What were your strategies in
these countries?

We were underweighted in both Brazil and Mexico for a significant portion of the
year because investors were fleeing these countries and virtually all stocks
were suffering steep price declines. Our investments tended to be in
dollar-earning companies, such as natural resource exporters, and in companies
with stable earnings. Once the outlook started improving, we increased our
emphasis in these countries and took positions in more domestically oriented
companies, such as telephone companies and utilities.

Brazil has the world's eighth largest economy, and is extremely important to
U.S. corporations. Companies such as General Motors and CitiGroup tend to have a
large presence in Brazil, and investors don't want this nation's economy to
fail. Brazil's currency was under speculative attack for much of the year,
although this speculation appears to have receded. Investors have recognized
that Brazil's national government is acting responsibly to deal with debt and
economic problems and that the United States is willing to come to its aid.

22
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Latin America Fund
- --------------------------------------------------------------------------------

Portfolio Manager Interview

Top 10 Holdings
------------------------------
(based on 10/31/98 net assets)

Telecomunicacoes Brasileiras S.A.
("Telebras") ADR 7.0%
................................................................................
Kimberly Clark Corp. de Mexico SA de CV, Cl. A 4.0%
................................................................................
Electrobras SA 4.0%
................................................................................
Telefonos de Mexico SA, ADR 3.8%
................................................................................
Fomento Economico Mexicano SA 3.5%
................................................................................
Transportadora de Gas del Sur SA, ADR ("TGS") 3.2%
................................................................................
Empressa Brasileira de Aeronautica 3.2%
................................................................................
Petroleo Brasileiro SA (Petrobras) 3.0%
................................................................................
Organization Soriana, Ser. B 2.8%
................................................................................
Telecomunicacoes de Sao Paulo SA 2.6%
................................................................................
(portfolio composition subject to change)

What is the outlook?

Although the Latin American region took some serious blows during the past year,
we see some very attractive values in the region as we enter a new fiscal year.
In Brazil, for example, stocks were trading with price/earnings ratios just 7
times estimated 1999 earnings. It wouldn't take much for these prices to move
upward significantly, as we saw in the last six weeks of the past fiscal year.
We believe that if confidence is restored and liquidity begins to flow back into
Latin America, we can continue to see such gains.

In general, Latin American markets do well if external conditions are stable or
favorable. The region is dependent on three external factors:

1. Liquidity, that is, the availability of credit and low interest rates;

2. World economic growth, which fuels demand for Latin American goods;

3. Prices for commodities, such as oil or copper, produced in Latin America.

If the international economic outlook continues to improve, the Latin American
region will do very well because investors will turn to the very attractive
valuations it offers. Latin America has endured a very difficult period,
escaping the worst effects of the economic crisis that has crippled many Asian
economies since July 1997. The economic and political reforms that occurred in
Latin America in the early 1990s appeared to have worked.

We believe investors who endured the volatility of the past year are well
advised to stay invested in Latin America, which has substantially rebounded
from its lows and continues to offer substantial long-term growth opportunities.

23
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Precious Metals Fund
- --------------------------------------------------------------------------------

Fund at a Glance as of October 31, 1998

We sought to dampen volatility by selecting good individual stocks that tend to
be less affected by the volatility of gold prices.

Portfolio
Management
- --------------------------------------------------------------------------------

[PHOTO OF JOHN MADDEN APPEARS HERE]

John Madden
Tenure: October 1995

- --------------------------------------------------------------------------------
CURRENT INVESTMENT STYLE/1/
- --------------------------------------------------------------------------------

[GRAPHIC Morningstar's Style Box is based on a portfolio date as of
APPEARS HERE] 9/30/98.

/1/Source: 1998 Morningstar, Inc.

Past performance is no guarantee of future results. The performance of each
class may vary based on differences in loads, fees and expenses paid by the
shareholders investing in each class. The investment return and principal value
will fluctuate so that an investor's shares, when redeemed, may be worth more or
less than original cost. The S&P 500 is an unmanaged index and does not include
transaction costs associated with buying and selling securities or any
management fees. The CPI is a commonly used measure of inflation and does not
represent an investment return. It is not possible to invest directly in an
index.

- --------------------------------------------------------------------------------
PERFORMANCE AND RETURNS*
- --------------------------------------------------------------------------------
Class A Class B Class C
Inception Date 1/20/98 1/30/78 1/29/98
................................................................................
Average Annual Returns
................................................................................
1 year with sales charge - -26.25% -
................................................................................
1 year w/o sales charge - -22.60% -
................................................................................
5 years - -11.38% -
................................................................................
10 years - -1.98% -
................................................................................
Since Inception** -10.95% 6.74% -16.16%
................................................................................
Maximum Sales Charge 4.75% 5.00% 1.00%
Front End CDSC CDSC
................................................................................
12-month capital gain
distributions per share - $0.81 -
................................................................................

* Adjusted for maximum sales charge.
** Represents cumulative returns for Class A and C shares; these classes opened
in 1998 and do not have annual returns yet.

- --------------------------------------------------------------------------------
LONG TERM GROWTH
- --------------------------------------------------------------------------------

[LINE GRAPH APPEARS HERE]

Date Class B S&P 500 CPI Lipper Gold Index
10/31/88 10,000 10,000 10,000 10,000
10/31/89 10,691 12,640 10,449 11,388
10/31/90 8,909 11,694 11,107 9,794
10/31/91 9,916 15,612 11,431 10,242
10/31/92 8,791 17,166 11,797 8,407
10/31/93 14,705 19,731 12,122 13,421
10/31/94 16,400 20,494 12,438 15,508
10/31/95 13,328 25,913 12,787 12,614
10/31/96 15,447 32,156 13,170 14,974
10/31/97 10,574 42,483 13,444 9,668
10/31/98 8,184 51,825 13,627 7,224

Comparison of a $10,000 investment in Evergreen Precious Metals Fund Class B,
versus a similar investment in the Standard & Poor's 500 Index (S&P 500), the
Lipper Gold Fund Index (LGFI) and the Consumer Price Index (CPI).

The Standard & Poor's 500 Index is an unmanaged index of 500 publicly traded
U.S. stocks and is often used to indicate the performance of the overall stock
market.

The Lipper Gold Fund Index measures the average return of the 10 largest gold
funds, excluding sales charges, as tracked by Lipper Analytical Services Inc.

24
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Precious Metals Fund
- --------------------------------------------------------------------------------

Portfolio Manager Interview

How did the Fund perform during the period?

During the 12-month period that ended October 31, 1998, the Fund's total return
declined 22.6%, unadjusted for sales charge. For the same period, the Lipper
Gold Fund Index declined 25.3%.

Portfolio Characteristics
- --------------------------------------------------------------------------------
(as of 10/31/98)

Total Net Assets $109,753,221
................................................................................
Number of Holdings 55
................................................................................

Compared to the general stock market, gold funds and gold bullion had a
difficult year. The XAU Index, an index composed largely of North American gold
stocks, declined 13.5% and the gold bullion market declined almost 6%. In
comparison, the Dow Jones Industrial Average (DJIA) rose 17.5% for the same
period and the Standard & Poors' 500 Index rose 22.0%.

Describe the gold market over the past year.

Within the framework of poor relative returns, prices on gold bullion and gold
stocks were volatile. From January through April, for example, gold stocks
performed fairly well. The price of gold fell below $280 an ounce in January and
then rose to more than $300 an ounce. Gold stocks followed suit. The Fund
advanced 50%, a move that significantly outpaced the rise in the DJIA during the
same period.

Unfortunately, gold did not stay at the $300 level but instead returned to the
pattern of decline that began in 1996. Throughout the summer of 1998, the prices
of gold bullion and gold stocks declined steadily. We believe a number of
factors contributed to this decline, including selling, or rumors of selling, by
central banks, a decision about gold holdings for the new European Central Bank
that disappointed some, and continuous pressure from short sellers who viewed
gold as a commodity in significant oversupply. By the end of August 1998, gold
investments were at multi-year lows. The price of gold bullion fell to $274 an
ounce, and the XAU hit bottom at 48.89.

The reversal was quick and complete. Over the next few weeks, the XAU rose 60%,
and the price of gold again rose beyond $300 an ounce. We believe a number of
reasons accounted for this change: the declining U.S. dollar; the default of the
hedge fund, Long Term Capital; President Clinton's political difficulties; and
continued unsolved problems in the emerging markets. The upward movement in the
price of gold ceased only when the Federal Reserve Board calmed U.S. and foreign
markets and halted the U.S. dollar's decline. To paraphrase Mark Twain, this
performance suggests that rumors of gold's demise as a "safe haven" may be
premature.

Industry Allocation
- --------------------------------------------------------------------------------
(based on 10/31/98 net assets)

Gold Mining 66.4%
................................................................................
Metals & Mining 30.6%
................................................................................
Cash & Cash Equivalents 3.0%
................................................................................

What was your investment strategy?

We sought to dampen volatility by selecting good individual stocks that tend to
be less affected by the volatility of gold prices. A number of holdings in the
portfolio, such as Barrick Gold and Euro- and Franco-Nevada, are less exposed to
the vagaries of the bullion market than are unhedged operators such as Newmont
or smaller operators such as some of our Canadian investments. Our strategy was
more successful during

25
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Precious Metals Fund
- --------------------------------------------------------------------------------

Portfolio Manager Interview

periods of market advances than during periods of market downturns. Because we
continue to be optimistic about the price of gold, we will maintain this
strategy.

Geographical Allocation
- --------------------------------------------------------------------------------
(based on 10/31/98 net assets)

Canada 43.9%
................................................................................
South Africa 29.3%
................................................................................
United States* 17.7%
................................................................................
Australia 8.7%
................................................................................
Papua New Guinea 0.4%
................................................................................
*Includes short term investments

Where did you find opportunity?

We added to holdings in South Africa with opportunities in larger companies,
such as Gold Fields, which is benefiting from restructuring; and in smaller
companies, such as Harmony. Two Australian companies, Ross Mining and Delta
Gold, performed very well. Ross Mining successfully commissioned its new mine in
the Solomon Islands, and Delta Gold had strong production and exploration
results. Overall, however, investments in North America continued to represent
slightly more than 60% of the Fund's equity holdings, with U.S.-based companies
being a slightly larger portion than a year ago. We eliminated holdings in Latin
American stocks, because we were concerned about problems in emerging markets.

Did you invest in non-gold stocks?

We continued to seek opportunities in non-gold areas, particularly in platinum
and diamond companies. One successful investment, which we discussed in our last
shareholder report, was Stillwater Mining, the palladium-platinum producer in
Montana. Stillwater Mining has continued to perform well. While prices on many
gold stocks are just returning to levels of six months ago, Stillwater has risen
another 40%.

Top 10 Holdings
- --------------------------------------------------------------------------------
(based on 10/31/98 net assets)

Franco Nevada Mining Ltd. 8.3%
................................................................................
Anglogold Ltd. 7.9%
................................................................................
Euro Nevada Mining Ltd. 6.4%
................................................................................
Barrick Gold Corp. 5.4%
................................................................................
Placer Dome 5.1%
................................................................................
Stillwater Mining Co. 5.0%
................................................................................
Harmony Gold Mining Ltd. 4.4%
................................................................................
Ashanti Goldfields Ltd., GDR 4.4%
................................................................................
Homestake Mining Co. 4.0%
................................................................................
Newmont Mining Corp. 3.4%
................................................................................

Given the volatility of gold, what is your outlook?

We are optimistic about the price of gold. The metal has absorbed an
extraordinary amount of bad news over the past two years, and like most tangible
assets, gold has become extremely cheap in comparison to stocks and other
investments. Beyond this, however, there are several factors which bode well for
both gold bullion and gold stocks. First, there is strong physical demand for
gold. Recent reports indicate that gold demand in the third quarter of 1998 was
at near-record

26
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Precious Metals Fund
- --------------------------------------------------------------------------------

Portfolio Manager Interview

levels, with investment demand in developed countries, especially the U.S.,
making up for declines from normally strong Asian markets. Second, the
introduction of the European Monetary Union could reduce gold sales from
European central banks. Third, the long bull run of the dollar has been halted,
making gold more attractive.

Less quantifiable, but as important, is the fact that governments around the
world are focused on maintaining economic growth. Inflation concerns have been
set aside. If we avoid a global recession, however, the benign inflation numbers
that have lessened investor interest in gold could be a thing of the past.
Finally, investors might want to consider the potential for another market
correction in the U.S. A number of unsolved problems--third world debt, problems
in Iraq, disappointing corporate earnings, and a massive trade deficit--could
unsettle the stock market. Under these circumstances, an investment in gold
could be rewarding.

27
<PAGE>

FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended October 31,
----------------------------------- Year Ended
1998# 1997# 1996# 1995 (b) December 31, 1994 (a)
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE
BEGINNING OF YEAR $ 9.99 $ 8.46 $ 7.90 $ 8.17 $10.00
------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.14 0 (0.01) 0.05 0
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions (1.98) 1.53 0.62 (0.32) (1.83)
------ ------ ------ ------ ------
Total from investment
operations (1.84) 1.53 0.61 (0.27) (1.83)
------ ------ ------ ------ ------
LESS DISTRIBUTIONS FROM
Net realized gains on
securities and foreign
currency
related transactions (0.25) 0 0 0 0
------ ------ ------ ------ ------
Net investment income 0 0 (0.05) 0 0
Total distributions (0.25) 0 (0.05) 0 0
------ ------ ------ ------ ------
NET ASSET VALUE END OF
YEAR $ 7.90 $ 9.99 $ 8.46 $ 7.90 $ 8.17
------ ------ ------ ------ ------
TOTAL RETURN* (18.89%) 18.09% 7.70% (3.30%) (18.30%)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $6,195 $2,777 $1,645 $1,117 $ 867
RATIOS TO AVERAGE NET
ASSETS:
Expenses 2.04% 1.75% 1.74% 1.73%+ 1.78%+
Expenses, after fee
credits 2.02% 1.74% N/A N/A N/A
Expenses, excluding fee
credits, waivers and
expense reimbursements 2.21% 2.26% 3.58% 3.97%+ 3.96%+
Net investment income 1.54% (0.02%) (0.09%) 0.76%+ 0.12%+
PORTFOLIO TURNOVER RATE 380% 157% 107% 65% 17%
</TABLE>

<TABLE>
<CAPTION>
Year Ended October 31,
----------------------------------- Year Ended
1998# 1997# 1996# 1995 (b) December 31, 1994 (a)
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSET VALUE
BEGINNING OF YEAR $ 9.85 $ 8.39 $ 7.85 $ 8.16 $10.00
------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.08 (0.08) (0.08) 0.01 (0.02)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions (1.99) 1.54 0.62 (0.32) (1.82)
------ ------ ------ ------ ------
Total from investment
operations (1.91) 1.46 0.54 (0.31) (1.84)
------ ------ ------ ------ ------
Net realized gains on
securities and foreign
currency
related transactions (0.25) 0 0 0 0
------ ------ ------ ------ ------
LESS DISTRIBUTIONS FROM
Total distributions (0.25) 0 0 0 0
------ ------ ------ ------ ------
NET ASSET VALUE END OF
YEAR $ 7.69 $ 9.85 $ 8.39 $ 7.85 $ 8.16
------ ------ ------ ------ ------
TOTAL RETURN* (19.89%) 17.40% 6.90% (3.80%) (18.40%)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $2,970 $4,020 $2,881 $1,940 $1,589
RATIOS TO AVERAGE NET
ASSETS:
Expenses 2.78% 2.50% 2.50% 2.48%+ 2.53% +
Expenses, after fee
credits 2.76% 2.49% N/A N/A N/A
Expenses, excluding fee
credits, waivers and
expense reimbursements 2.95% 3.00% 4.34% 4.72%+ 4.71% +
Net investment income 0.80% (0.79%) (0.87%) 0.03%+ (0.84%)+
PORTFOLIO TURNOVER RATE 380% 157% 107% 65% 17%
</TABLE>
* Excluding sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the pe-
riod.
(a) For the period from September 6, 1994 (commencement of operations) to De-
cember 31, 1994.
(b) For the ten-month period ended October 31, 1995. The Fund changed its year
end from December 31 to October 31, effective October 31, 1995.

See Combined Notes to Financial Statements.

28
<PAGE>

FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended October 31,
----------------------------------- Year Ended
1998# 1997# 1996# 1995 (b) December 31, 1994 (a)
<S> <C> <C> <C> <C> <C>
CLASS C SHARES
NET ASSET VALUE
BEGINNING OF YEAR $ 9.85 $ 8.38 $7.84 $ 8.16 $ 10.00
------- ------ ----- ------ -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.05 (0.06) (0.08) 0.02 (0.02)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions (1.97) 1.53 0.62 (0.34) (1.82)
------- ------ ----- ------ -------
Total from investment
operations (1.92) 1.47 0.54 (0.32) (1.84)
------- ------ ----- ------ -------
Net realized gains on
securities and foreign
currency
related transactions (0.25) 0 0 0 0
------- ------ ----- ------ -------
LESS DISTRIBUTIONS FROM
Total distributions (0.25) 0 0 0 0
------- ------ ----- ------ -------
NET ASSET VALUE END OF
YEAR $ 7.68 $ 9.85 $8.38 $ 7.84 $ 8.16
------- ------ ----- ------ -------
TOTAL RETURN* (20.00%) 17.50% 6.90% (3.90%) (18.40%)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $ 577 $1,282 $ 85 $ 56 $ 89
RATIOS TO AVERAGE NET
ASSETS:
Expenses 2.78% 2.50% 2.51% 2.50%+ 2.53% +
Expenses, after fee
credits 2.76% 2.49% N/A N/A N/A
Expenses, excluding fee
credits, waivers and
expense reimbursements 2.95% 3.01% 4.31% 4.74%+ 4.71% +
Net investment income 0.59% (0.61%) (0.91%) 0.72%+ (0.82%)+
PORTFOLIO TURNOVER RATE 380% 157% 107% 65% 17%
</TABLE>

<TABLE>
<CAPTION>
Year Ended October 31,
------------------------------------ Year Ended
1998# 1997# 1996# 1995 (b) December 31, 1994 (a)
<S> <C> <C> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE
BEGINNING OF YEAR $ 10.04 $ 8.48 $ 7.92 $ 8.17 $10.00
------- ------- ------- ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.16 0.03 0.01 0.05 0.01
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions (1.98) 1.53 0.62 (0.30) (1.84)
------- ------- ------- ------ ------
Total from investment
operations (1.82) 1.56 0.63 (0.25) (1.83)
------- ------- ------- ------ ------
LESS DISTRIBUTIONS FROM
Net realized gains on
securities and foreign
currency
related transactions (0.25) 0 0 0 0
------- ------- ------- ------ ------
Net investment income (0.01) 0 (0.07) 0 0
Total distributions (0.26) 0 (0.07) 0 0
------- ------- ------- ------ ------
NET ASSET VALUE END OF
YEAR $ 7.96 $ 10.04 $ 8.48 $ 7.92 $ 8.17
------- ------- ------- ------ ------
TOTAL RETURN (18.63%) 18.40% 7.90% (3.10%) (18.30%)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $48,953 $61,142 $28,959 $9,355 $5,878
RATIOS TO AVERAGE NET
ASSETS:
Expenses 1.78% 1.50% 1.50% 1.48%+ 1.53%+
Expenses, after fee
credits 1.77% 1.49% N/A N/A N/A
Expenses, excluding fee
credits, waivers and
expense reimbursements 1.95% 2.01% 3.27% 3.72%+ 3.71%+
Net investment income 1.71% 0.25% 0.11% 0.94%+ 0.43%+
PORTFOLIO TURNOVER RATE 380% 157% 107% 65% 17%
</TABLE>
* Excluding sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
(a) For the period from September 6, 1994 (commencement of operations) to
December 31, 1994.
(b) For the ten-month period ended October 31, 1995. The Fund changed its year
end from December 31 to October 31, effective October 31, 1995.

See Combined Notes to Financial Statements.

29
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended October 31,
------------------------------
1998# 1997# 1996 (a)#
<S> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF YEAR $ 13.67 $ 11.91 $ 11.29
-------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (0.04) (0.01) 0
Net realized and unrealized gains or losses
on securities and foreign currency
related transactions 1.38 1.78 0.62
-------- ------- -------
Total from investment operations 1.34 1.77 0.62
-------- ------- -------
LESS DISTRIBUTIONS FROM
Net realized gains on securities and foreign
currency related transactions (0.06) (0.01) 0
-------- ------- -------
Total distributions (0.06) (0.01) 0
-------- ------- -------
NET ASSET VALUE END OF YEAR $ 14.95 $ 13.67 $ 11.91
-------- ------- -------
TOTAL RETURN* 9.82% 14.88% 5.50%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR (THOUSANDS) $142,622 $38,604 $12,975
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.85% 1.91% 1.75%+
Expenses, after fee credits 1.85% 1.90% N/A
Expenses, excluding fee credits, waivers and
expense reimbursements N/A 1.98% 2.16%+
Net investment income (0.25%) (0.05%) 0.10%+
PORTFOLIO TURNOVER RATE 16% 29% 20%
</TABLE>

<TABLE>
<CAPTION>
Year Ended October 31,
------------------------------
1998 1997 1996 (a)
<S> <C> <C> <C>
CLASS B SHARES
NET ASSET VALUE BEGINNING OF YEAR $ 13.52 $ 11.87 $ 11.29
-------- -------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (0.16)# (0.11)# (0.02)#
Net realized and unrealized gains or losses
on securities and foreign currency
related transactions 1.40 1.77 0.60
-------- -------- -------
Total from investment operations 1.24 1.66 0.58
-------- -------- -------
LESS DISTRIBUTIONS FROM
Net realized gains on securities and foreign
currency related transactions (0.06) (0.01) 0
-------- -------- -------
Total distributions (0.06) (0.01) 0
-------- -------- -------
NET ASSET VALUE END OF YEAR $ 14.70 $ 13.52 $ 11.87
-------- -------- -------
TOTAL RETURN* 9.19% 14.01% 5.10%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR (THOUSANDS) $166,556 $134,375 $41,948
RATIOS TO AVERAGE NET ASSETS:
Expenses 2.61% 2.66% 2.50% +
Expenses, after fee credits 2.61% 2.66% N/A
Expenses, excluding fee credits, waivers and
expense reimbursements N/A 2.74% 2.93% +
Net investment income (1.09%) (0.83%) (0.68%)+
PORTFOLIO TURNOVER RATE 16% 29% 20%
</TABLE>
* Excluding sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
(a) For the period from June 3, 1996 (commencement of class operations) to
October 31, 1996.

See Combined Notes to Financial Statements.

30
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended October 31,
---------------------------
1998# 1997# 1996 (a)#
<S> <C> <C> <C>
CLASS C SHARES
NET ASSET VALUE BEGINNING OF YEAR $13.51 $11.86 $11.29
------ ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (0.16) (0.11) (0.02)
Net realized and unrealized gains or losses on
securities and foreign currency
related transactions 1.38 1.77 0.59
------ ------ ------
Total from investment operations 1.22 1.66 0.57
------ ------ ------
LESS DISTRIBUTIONS FROM
Net realized gains on securities and foreign
currency related transactions (0.06) (0.01) 0
------ ------ ------
Total distributions (0.06) (0.01) 0
------ ------ ------
NET ASSET VALUE END OF YEAR $14.67 $13.51 $11.86
------ ------ ------
TOTAL RETURN* 9.05% 14.02% 5.00%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR (THOUSANDS) $3,875 $2,386 $ 554
RATIOS TO AVERAGE NET ASSETS:
Expenses 2.61% 2.65% 2.50% +
Expenses, after fee credits 2.61% 2.65% N/A
Expenses, excluding fee credits, waivers and
expense reimbursements N/A 2.73% 2.93% +
Net investment income (1.06%) (0.80%) (0.67%)+
PORTFOLIO TURNOVER RATE 16% 29% 20%
</TABLE>

<TABLE>
<CAPTION>
Year Ended October 31,
--------------------------
1998# 1997# 1996#
<S> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF YEAR $ 13.71 $ 11.91 $ 10.00
------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (0.01) 0.03 0.07
Net realized and unrealized gains or losses on
securities and foreign currency
related transactions 1.41 1.78 1.88
------- ------- -------
Total from investment operations 1.40 1.81 1.95
------- ------- -------
LESS DISTRIBUTIONS FROM
Net investment income 0 0 (0.04)
Net realized gains on securities and foreign
currency related transactions (0.06) (0.01) 0
------- ------- -------
Total distributions (0.06) (0.01) (0.04)
------- ------- -------
NET ASSET VALUE END OF YEAR $ 15.05 $ 13.71 $ 11.91
------- ------- -------
TOTAL RETURN 10.23% 15.22% 19.60%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR (THOUSANDS) $41,873 $35,461 $18,607
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.61% 1.64% 1.47%+
Expenses, after fee credits 1.61% 1.64% N/A
Expenses, excluding fee credits, waivers and
expense reimbursements N/A 1.72% 2.51%+
Net investment income (0.09%) 0.23% 0.62%+
PORTFOLIO TURNOVER RATE 16% 29% 20%
</TABLE>
* Excluding sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the pe-
riod.
(a) For the period from June 3, 1996 (commencement of class operations) to Oc-
tober 31, 1996.

See Combined Notes to Financial Statements.

31
<PAGE>

FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended October 31, Year Ended September 30,
-------------------------- ---------------------------------------
1998# 1997 (a) 1997# 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE
BEGINNING OF YEAR $ 23.53 $ 24.90 $ 24.56 $ 23.43 $ 19.42 $ 18.02
----------- ----------- -------- -------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income or
loss (0.12) 0.02 (0.17) (0.06) (0.16) (0.04)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions (2.62) (1.39) 1.76 1.19 4.17 1.60
----------- ----------- -------- -------- ------- -------
Total from investment
operations (2.74) (1.37) 1.59 1.13 4.01 1.56
----------- ----------- -------- -------- ------- -------
LESS DISTRIBUTIONS FROM
Net realized gains on
securities and foreign
currency
related transactions (1.53) 0 (1.25) 0 0 (0.16)
----------- ----------- -------- -------- ------- -------
Total distributions (1.53) 0 (1.25) 0 0 (0.16)
----------- ----------- -------- -------- ------- -------
NET ASSET VALUE END OF
YEAR $ 19.26 $ 23.53 $ 24.90 $ 24.56 $ 23.43 $ 19.42
----------- ----------- -------- -------- ------- -------
TOTAL RETURN* (12.42%) (5.50%) 6.95% 4.82% 20.65% 8.74%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $ 58,944 $ 98,031 $113,477 $250,427 $94,679 $71,122
RATIOS TO AVERAGE NET
ASSETS
Expenses 1.81% 1.87% + 1.67% 1.62% 1.83% 2.01%
Expenses, after fee
credits 1.80% 1.85% + 1.66% 1.60% 1.81% N/A

Net investment income (0.54%) (1.40%)+ (0.69%) (0.53%) (0.83%) (0.86%)

PORTFOLIO TURNOVER RATE 127% 7% 72% 67% 35% 32%
</TABLE>
<TABLE>
<CAPTION>
Year Ended October 31, Year Ended September 30,
-------------------------- -----------------------------------------
1998# 1997 (a) 1997# 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSET VALUE
BEGINNING OF PERIOD $ 22.69 $ 24.03 $ 23.92 $ 23.00 $ 19.20 $ 17.95
----------- ----------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (0.28) (0.06) (0.32) (0.21) (0.25) (0.15)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions (2.49) (1.28) 1.68 1.13 4.05 1.56
----------- ----------- -------- -------- -------- --------
Total from investment
operations (2.77) (1.34) 1.36 0.92 3.80 1.41
----------- ----------- -------- -------- -------- --------
LESS DISTRIBUTIONS FROM
Net realized gains on
securities and foreign
currency
related transactions (1.53) 0 (1.25) 0 0 (0.16)
----------- ----------- -------- -------- -------- --------
Total distributions (1.53) 0 (1.25) 0 0 (0.16)
----------- ----------- -------- -------- -------- --------
NET ASSET VALUE END OF
YEAR $ 18.39 $ 22.69 $ 24.03 $ 23.92 $ 23.00 $ 19.20
----------- ----------- -------- -------- -------- --------
TOTAL RETURN* (13.06%) (5.58%) 6.14% 4.00% 19.79% 7.93%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $ 122,147 $ 216,471 $238,936 $385,839 $238,320 $131,695
RATIOS TO AVERAGE NET
ASSETS
Expenses 2.55% 2.62% + 2.46% 2.40% 2.58% 2.83%
Expenses, after fee
credits 2.55% 2.61% + 2.44% 2.38% 2.56% N/A
Net investment income (1.30%) (2.15%)+ (1.45%) (1.37%) (1.59%) (1.61%)
PORTFOLIO TURNOVER RATE 127% 7% 72% 67% 35% 32%
</TABLE>
* Excluding sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
(a) For the one-month period ended October 31, 1997. The Fund changed its
fiscal year end from September 30 to October 31, effective October 31, 1997.

See Combined Notes to Financial Statements.

32
<PAGE>

FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended October 31, Year Ended September 30,
-------------------------- --------------------------------------
1998# 1997 (a) 1997# 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
CLASS C SHARES
NET ASSET VALUE
BEGINNING OF YEAR $ 22.73 $ 24.07 $ 23.97 $ 23.04 $ 19.26 $ 17.99
----------- ----------- ------- -------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (0.28) (0.07) (0.33) (0.24) (0.27) (0.15)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions (2.49) (1.27) 1.68 1.17 4.05 1.58
----------- ----------- ------- -------- ------- -------
Total from investment
operations (2.77) (1.34) 1.35 0.93 3.78 1.43
----------- ----------- ------- -------- ------- -------
LESS DISTRIBUTIONS FROM
Net realized gains on
securities and foreign
currency
related transactions (1.53) 0 (1.25) 0 0 (0.16)
----------- ----------- ------- -------- ------- -------
Total distributions (1.53) 0 (1.25) 0 0 (0.16)
----------- ----------- ------- -------- ------- -------
NET ASSET VALUE END OF
YEAR $ 18.43 $ 22.73 $ 24.07 $ 23.97 $ 23.04 $ 19.26
----------- ----------- ------- -------- ------- -------
TOTAL RETURN* (13.03%) (5.57%) 6.08% 4.04% 19.63% 8.02%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $ 23,043 $ 43,869 $49,524 $124,549 $86,339 $50,535
RATIOS TO AVERAGE NET
ASSETS:
Expenses 2.56% 2.62% + 2.45% 2.40% 2.58% 2.85%
Expenses, after fee
credits 2.55% 2.61% + 2.43% 2.38% 2.56% N/A

Net investment income (1.31%) (2.15%)+ (1.48%) (1.38%) (1.59%) (1.62%)
PORTFOLIO TURNOVER RATE 127% 7% 72% 67% 35% 32%
</TABLE>
<TABLE>
<CAPTION>
Year Ended October 31,
-------------------------- Period ended
1998# 1997 (a) September 30, 1997 (b)
<S> <C> <C> <C>
CLASS Y SHARES
NET ASSET VALUE
BEGINNING OF YEAR $ 23.90 $ 25.24 $23.05
----------- ----------- ------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.09 0 (0.28)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions (2.88) (1.34) 2.47
----------- ----------- ------
Total from investment
operations (2.79) (1.34) 2.19
----------- ----------- ------
Net realized gains on
securities and foreign
currency related
transactions (1.53) 0 0
----------- ----------- ------
LESS DISTRIBUTIONS FROM
Total distributions (1.53) 0 0
----------- ----------- ------
NET ASSET VALUE END OF
YEAR $ 19.58 $ 23.90 $25.24
----------- ----------- ------
TOTAL RETURN (12.45%) (5.31%) 9.50%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $ 31 $ 0 $ 0
RATIOS TO AVERAGE NET
ASSETS:
Expenses 1.49% 1.62% + 1.42% +
Expenses, after fee
credits 1.48% 1.62% + 1.42% +
Net investment income 0.17% (1.62%)+ (1.22%)+
PORTFOLIO TURNOVER RATE 127% 7% 72%
</TABLE>
* Excluding sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
(a) For the one-month period ended October 31, 1997. The Fund changed its
fiscal year end from September 30 to October 31, effective October 31, 1997.
(b) For the period from January 13, 1997 (commencement of class operations) to
September 30, 1997.

See Combined Notes to Financial Statements.

33
<PAGE>

FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Period Ended
October 31, 1998 (a)#
<S> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF PERIOD $ 6.88
--------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.10
Net realized and unrealized gains or losses on
securities and foreign currency related transactions 0.49
--------
Total from investment operations 0.59
--------
LESS DISTRIBUTIONS FROM
Net realized gains on securities and foreign currency
related transactions 0.00
--------
Total distributions 0.00
--------
NET ASSET VALUE END OF PERIOD $ 7.47
--------
TOTAL RETURN* 8.58%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF PERIOD (THOUSANDS) $128,657
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.53%+
Expenses, after fee credits 1.53%+
Net investment income 1.08%+
PORTFOLIO TURNOVER RATE 155%
</TABLE>

<TABLE>
<CAPTION>
Year Ended October 31,
--------------------------------------------------- Year Ended
1998# 1997# 1996 1995 1994 (b)# September 30, 1994#
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSET VALUE
BEGINNING OF YEAR $ 8.65 $ 7.69 $ 7.11 $ 7.77 $ 7.67 $ 7.08
------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (0.02) (0.05) (0.02) 0.07 0 0
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions 0.67 1.27 0.75 0.05 0.10 0.62
------- -------- -------- -------- -------- --------
Total from investment
operations 0.65 1.22 0.73 0.12 0.10 0.62
------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS FROM
Net realized gains on
securities and foreign
currency related
transactions (1.54) (0.16) (0.05) (0.74) 0 0
------- -------- -------- -------- -------- --------
Net investment income (0.33) (0.10) (0.10) (0.04) 0 (0.03)
Total distributions (1.87) (0.26) (0.15) (0.78) 0 (0.03)
------- -------- -------- -------- -------- --------
NET ASSET VALUE END OF
YEAR $ 7.43 $ 8.65 $ 7.69 $ 7.11 $ 7.77 $ 7.67
------- -------- -------- -------- -------- --------
TOTAL RETURN* 9.35% 15.69% 10.47% 2.19% 1.30% 8.75%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $75,467 $151,806 $147,911 $128,674 $157,929 $154,529
RATIOS TO AVERAGE NET
ASSETS:
Expenses 2.30% 2.39% 2.43% 2.57% 2.52% + 2.54%
Expenses, after fee
credits 2.30% 2.38% 2.42% 2.56% N/A N/A
Net investment income (0.13%) (0.49%) (0.21%) 0.88% (0.20%)+ 0.01%
PORTFOLIO TURNOVER RATE 155% 101% 52% 76% 2% 121%
</TABLE>
* Excluding sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
(a) For the period from January 20, 1998 (commencement of class operations) to
October 31, 1998.
(b) For the one-month period ended October 31, 1994. The Fund changed its fis-
cal year end from September 30 to October 31, effective October 31, 1994.

See Combined Notes to Financial Statements.

34
<PAGE>

FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Period Ended
October 31, 1998 (a)#
<S> <C>
CLASS C SHARES
NET ASSET VALUE BEGINNING OF PERIOD $ 7.64
------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03
Net realized and unrealized gains or losses on
securities and foreign currency related transactions (0.24)
------
Total from investment operations (0.21)
------
LESS DISTRIBUTIONS FROM
Net realized gains on securities and foreign currency
related transactions 0.00
------
Total distributions 0.00
------
NET ASSET VALUE END OF PERIOD $ 7.43
------
TOTAL RETURN* (2.75%)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF PERIOD (THOUSANDS) $3,375
RATIOS TO AVERAGE NET ASSETS:
Expenses 2.19%+
Expenses, after fee credits 2.18%+
Net investment income 0.44%+
PORTFOLIO TURNOVER RATE 155%
</TABLE>

<TABLE>
<CAPTION>
Period Ended
October 31, 1998 (b)#
<S> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF PERIOD $ 7.73
--------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.07
Net realized and unrealized gains or losses on
securities and foreign currency related transactions (0.35)
--------
Total from investment operations (0.28)
--------
LESS DISTRIBUTIONS FROM
Net realized gains on securities and foreign currency
related transactions 0.00
--------
Total distributions 0.00
--------
NET ASSET VALUE END OF PERIOD $ 7.45
--------
TOTAL RETURN (3.62%)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF PERIOD (THOUSANDS) $428,188
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.18%+
Expenses, after fee credits 1.17%+
Net investment income 1.13%+
PORTFOLIO TURNOVER RATE 155%
</TABLE>
* Excluding sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
(a) For the period from March 6, 1998 (commencement of class operations) to
October 31, 1998.
(b) For the period from March 9, 1998 (commencement of class operations) to
October 31, 1998.

See Combined Notes to Financial Statements.

35
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Latin America Fund
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended October 31,
--------------------------------------------
1998# 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF
YEAR $13.15 $ 11.13 $ 9.86 $ 10.55 $ 10.00
------ ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.14 0.02 0.39 0.44 0.21
Net realized and unrealized
gains or losses on securities
and foreign currency related
transactions (2.87) 2.10 1.24 (0.81) 0.50
------ ------- ------- ------- -------
Total from investment
operations (2.73) 2.12 1.63 (0.37) 0.71
------ ------- ------- ------- -------
LESS DISTRIBUTIONS FROM
Net realized gains on
securities and foreign
currency related transactions (2.86) 0 0 (0.02) (0.05)
------ ------- ------- ------- -------
Net investment income 0 (0.10) (0.36) (0.30) (0.11)
Total distributions (2.86) (0.10) (0.36) (0.32) (0.16)
------ ------- ------- ------- -------
NET ASSET VALUE END OF YEAR $ 7.56 $ 13.15 $ 11.13 $ 9.86 $ 10.55
------ ------- ------- ------- -------
TOTAL RETURN* (27.18%) 19.18% 16.74% (3.35%) 7.21%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $6,483 $13,621 $11,021 $14,333 $23,880
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.86% 1.69% 1.83% 1.86% 1.79%
Expenses, after fee credits 1.85% 1.68% 1.81% 1.84% N/A
Net investment income 1.33% 0.20% 3.05% 4.02% 2.45%
PORTFOLIO TURNOVER RATE 197% 105% 112% 57% 104%
</TABLE>

<TABLE>
<CAPTION>
Year Ended October 31,
-----------------------------------------------
1998# 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSET VALUE BEGINNING OF
YEAR $ 12.91 $ 10.98 $ 9.76 $ 10.49 $ 10.00
------- ------- ------- ------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.06 (0.08) 0.23 0.32 0.14
Net realized and unrealized
gains or losses on
securities and
foreign currency related
transactions (2.77) 2.09 1.30 (0.75) 0.50
------- ------- ------- ------- --------
Total from investment
operations (2.71) 2.01 1.53 (0.43) 0.64
------- ------- ------- ------- --------
LESS DISTRIBUTIONS FROM
Net realized gains on
securities and foreign
currency
related transactions (2.86) 0 0 (0.02) (0.05)
------- ------- ------- ------- --------
Net investment income 0 (0.08) (0.31) (0.28) (0.10)
Total distributions (2.86) (0.08) (0.31) (0.30) (0.15)
------- ------- ------- ------- --------
NET ASSET VALUE END OF YEAR $ 7.34 $ 12.91 $ 10.98 $ 9.76 $ 10.49
------- ------- ------- ------- --------
TOTAL RETURN* (27.60%) 18.40% 15.82% (4.00%) 6.48%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $32,046 $75,271 $79,026 $97,165 $148,769
RATIOS TO AVERAGE NET
ASSETS:
Expenses 2.61% 2.50% 2.59% 2.61% 2.54%
Expenses, after fee credits 2.60% 2.49% 2.58% 2.59% N/A
Net investment income 0.60% (0.51%) 2.30% 3.27% 1.70%
PORTFOLIO TURNOVER RATE 197% 105% 112% 57% 104%
</TABLE>
* Excluding sales charges.
# Net investment income is based on average shares outstanding during the
period.

See Combined Notes to Financial Statements.

36
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Latin America Fund
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Year Ended October 31,
--------------------------------------------
1998# 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
CLASS C SHARES
NET ASSET VALUE BEGINNING OF
YEAR $12.92 $ 10.99 $ 9.77 $ 10.50 $ 10.00
------ ------- ------ ------- -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.05 (0.07) 0.23 0.32 0.14
Net realized and unrealized
gains or losses on securities
and foreign currency related
transactions (2.79) 2.08 1.30 (0.75) 0.51
------ ------- ------ ------- -------
Total from investment
operations (2.74) 2.01 1.53 (0.43) 0.65
------ ------- ------ ------- -------
LESS DISTRIBUTIONS FROM
Net realized gains on
securities and foreign
currency related transactions (2.86) 0 0 (0.02) (0.05)
------ ------- ------ ------- -------
Net investment income 0 (0.08) (0.31) (0.28) (0.10)
Total distributions (2.86) (0.08) (0.31) (0.30) (0.15)
------ ------- ------ ------- -------
NET ASSET VALUE END OF YEAR $ 7.32 $ 12.92 $10.99 $ 9.77 $ 10.50
------ ------- ------ ------- -------
TOTAL RETURN* (27.86%) 18.38% 15.80% (4.00%) 6.58%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $4,725 $10,961 $8,791 $11,242 $17,740
RATIOS TO AVERAGE NET ASSETS:
Expenses 2.61% 2.47% 2.59% 2.61% 2.54%
Expenses, after fee credits 2.60% 2.46% 2.58% 2.59% N/A
Net investment income 0.54% (0.52%) 2.26% 3.27% 1.74%
PORTFOLIO TURNOVER RATE 197% 105% 112% 57% 104%
</TABLE>

<TABLE>
<CAPTION>
Year Ended
October 31, 1998 (a)#
<S> <C>
CLASS Y SHARES
NET ASSET VALUE BEGINNING OF PERIOD $10.94
------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.07
Net realized and unrealized gains or losses on
securities and foreign currency related transactions (3.43)
------
Total from investment operations (3.36)
------
LESS DISTRIBUTIONS FROM
Net investment income 0.00
Net realized gains on securities and foreign currency
related transactions 0.00
------
Total distributions 0.00
------
NET ASSET VALUE END OF PERIOD $ 7.58
------
TOTAL RETURN (30.71%)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF PERIOD (THOUSANDS) $ 28
RATIOS TO AVERAGE NET ASSETS:
Expenses 1.49%+
Expenses, after fee credits 1.49%+
Net investment income 1.33%+
PORTFOLIO TURNOVER RATE 197%
</TABLE>
* Excluding sales charges.
# Net investment income is based on average shares outstanding during the pe-
riod.
(a) For the period from March 30, 1998 (commencement of class operations) to
October 31, 1998.
+ Annualized.

See Combined Notes to Financial Statements.

37
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Precious Metals Fund
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Period Ended
October 31, 1998 (a)#
<S> <C>
CLASS A SHARES
NET ASSET VALUE BEGINNING OF PERIOD $ 12.45
-------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (0.01)
Net realized and unrealized gains or losses on
securities and foreign currency related transactions (0.80)
-------
Total from investment operations (0.81)
-------
NET ASSET VALUE END OF PERIOD $ 11.64
-------
TOTAL RETURN* (6.51%)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF PERIOD (THOUSANDS) $83,431
RATIOS TO AVERAGE NET ASSETS:
Expenses 2.01% +
Expenses, after fee credits 2.01% +
Net investment income (0.12%)+
PORTFOLIO TURNOVER RATE 44%
</TABLE>

<TABLE>
<CAPTION>
Year Ended October 31, Year Ended February 28,
-------------------------- -----------------------------------------
1998# 1997 (b)# 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES
NET ASSET VALUE
BEGINNING OF YEAR $ 15.87 $ 23.94 $ 26.35 $ 19.30 $ 25.09 $ 14.38
---------- ----------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income (0.19) (0.14) (0.26) (0.25) (0.13) (0.17)
Net realized and
unrealized gains or
losses on securities
and foreign currency
related transactions (3.29) (7.93) (1.16) 7.30 (5.54) 10.88
---------- ----------- -------- -------- -------- --------
Total from investment
operations (3.48) (8.07) (1.42) 7.05 (5.67) 10.71
---------- ----------- -------- -------- -------- --------
LESS DISTRIBUTIONS FROM
Net investment income 0 0 0 0 (0.12) 0
Net realized gains on
securities and foreign
currency related
transactions (0.81) 0 (0.99) 0 0 0
---------- ----------- -------- -------- -------- --------
Total distributions (0.81) 0 (0.99) 0 (0.12) 0.00
---------- ----------- -------- -------- -------- --------
NET ASSET VALUE END OF
YEAR $ 11.58 $ 15.87 $ 23.94 $ 26.35 $ 19.30 $ 25.09
---------- ----------- -------- -------- -------- --------
TOTAL RETURN* (22.60%) (33.71%) (5.16%) 36.53% (22.70%) 74.48%
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF YEAR
(THOUSANDS) $ 25,765 $ 111,173 $190,108 $217,270 $171,193 $200,489
RATIOS TO AVERAGE NET
ASSETS:
Expenses 2.72% 2.48% + 2.33% 2.28% 2.33% 2.34%
Expenses, after fee
credits 2.72% 2.48% + 2.31% 2.26% N/A N/A
Net investment income (1.52%) (1.04%)+ (1.08%) (1.08%) (0.54%) (0.75%)
PORTFOLIO TURNOVER RATE 44% 19% 41% 39% 75% 73%
</TABLE>
* Excluding sales charges.
+ Annualized.
# Net investment income is based on average shares outstanding during the
period.
(a) For the period from January 20, 1998 (commencement of class operations) to
October 31, 1998.
(b) For the eight-month period ended October 31, 1997. The Fund changed its
fiscal year end from February 28 to October 31, effective October 31, 1997.

See Combined Notes to Financial Statements.

38
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Precious Metals Fund
- --------------------------------------------------------------------------------

FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each period)

<TABLE>
<CAPTION>
Period Ended
October 31, 1998 (a)#
<S> <C>
CLASS C SHARES
NET ASSET VALUE BEGINNING OF PERIOD $13.65
------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (0.14)
Net realized and unrealized gains or losses on
securities and foreign currency related transactions (1.93)
------
Total from investment operations (2.07)
------
NET ASSET VALUE END OF PERIOD $11.58
------
TOTAL RETURN* (15.16%)
RATIOS/SUPPLEMENTAL DATA
NET ASSETS END OF PERIOD (THOUSANDS) $ 557
RATIOS TO AVERAGE NET ASSETS:
Expenses 2.83%+
Expenses, after fee credits 2.83%+
Net investment loss (1.44%)+
PORTFOLIO TURNOVER RATE 44%
</TABLE>
* Excluding sales charges.
+ Annualized.
(a) For the period from January 29, 1998 (commencement of class operations) to
October 31, 1998.
# Net investment income is based on average shares outstanding during the
period.

See Combined Notes to Financial Statements.

39
<PAGE>

SCHEDULE OF INVESTMENTS
October 31, 1998

Shares Value

COMMON STOCKS - 59.3%
AEROSPACE & MILITARY TECHNOLOGY - 1.2%
36,653 Elbit Systems Ltd. .................................. $ 423,800
25,000,000 Empresa Brasileira de Aeronautica.................... 261,967
-----------
685,767
-----------
BANKING - 5.9%
16,400 Alpha Credit Bank, GDR............................... 1,309,288
19,500 Banco Comercial Portugues SA, Registered Shares...... 610,426
58,000 Commercial International Bank........................ 465,014
8,415 Wafabank............................................. 1,095,584
-----------
3,480,312
-----------
BEVERAGES & TOBACCO - 7.9%
35,400 Al-Ahram Beverage Co. SA, GDR........................ 992,970
21,600 Al-Ahram Beverage Co. SA, GDR, 144A (a).............. 605,880
25,900 Fomento Economico Mexicano, ADR...................... 675,019
183,000 Fraser & Neave Ltd. ................................. 584,701
92,500 Rembrandt Group Ltd. ................................ 616,391
1,000,000 San Miguel Brewery................................... 103,292
45,035 Uniao Cervjeira SA................................... 1,049,575
-----------
4,627,828
-----------
BUILDING MATERIALS &
COMPONENTS - 2.8%
1,889 Cemex SA............................................. 4,504
97,000 Cemex SA de CV Ser. B................................ 270,617
8,489 Cimenterie de l'Oriental............................. 1,047,195
16,443 Corporacion Geo SA de CV, Ser. B..................... 28,468
19,000 Suez Cement Co. ..................................... 293,586
-----------
1,644,370
-----------
ELECTRONIC COMPONENTS - 1.3%
224,000 Venture Manufacturing Ltd. .......................... 743,226
-----------
FINANCIAL SERVICES - 2.0%
8,950 Omnium Nord Africian, SA............................. 1,160,383
-----------
FOOD & HOUSEHOLD PRODUCTS - 0.7%
86,500 Grupo Industrial Bimbo, Ser. A....................... 145,479
120,300 Grupo Modelo SA de CV................................ 253,502
-----------
398,981
-----------
HEALTH & PERSONAL CARE - 0.6%
24,300 Pliva D.D., GDR, 144A (a)............................ 357,210
-----------
INSURANCE - 1.1%
38,500 Liberty Life Association of Africa, Ltd. ............ 660,295
-----------
MERCHANDISING - 1.6%
70,400 JD Group Ltd. ....................................... 327,003
575,300 New Clicks Holdings.................................. 590,974
-----------
917,977
-----------
TELECOMMUNICATIONS - 25.2%
89,050 Cseke Radiokomunikace AS, GDR, 144A (a).............. 2,716,025
104,400 Matav RT, ADR........................................ 2,805,750
75,700 OTE Greek Telecom, GDR............................... 1,719,417
25,800 Philippine Long Distance Telephone Co. .............. $ 628,875
13,500 Portugal Telecom SA.................................. 639,584
3,800 *Telecel-Comunicacaoes Pessoais SA................... 699,997
33,000 Telecomunicacoes Brasileiras SA, ("Telebras") ADR.... 2,505,937
1,450,000 *Telecomunicaoes de Sao Paulo SA..................... 243,107
53,300 Telefonos de Mexico SA, ADR.......................... 2,814,906
-----------
14,773,598
-----------
TRANSPORTATION - SHIPPING - 1.9%
154,800 Attica Enterprises................................... 1,131,732
-----------
UTILITIES - ELECTRIC, GAS & WATER - 5.2%
22,500 Electricidade de Portugal SA......................... 565,562
59,780 Magyar Olaj Es Gas................................... 1,336,035
112,525 Transportadora de Gas del Sur SA ("TGS"), ADR........ 1,160,414
-----------
3,062,011
-----------
WHOLESALE & INTERNATIONAL
TRADE - 2.0%
26,400 *Amica Wronki SA..................................... 122,595
6,885 Ceteco Holding NV.................................... 105,387
610,000 Li & Fung Ltd. ...................................... 953,002
-----------
1,180,984
-----------
Total Common Stocks (cost $33,836,998)............... 34,824,674
-----------
PREFERRED STOCKS - 2.1%
BROADCASTING & PUBLISHING - 2.1%
103,200 Filmes Lusomundo
(cost $1,115,673)................................... 1,212,903
-----------
Principal
Amount

SHORT-TERM INVESTMENTS - 38.3%
U. S. AGENCY OBLIGATIONS - 38.3%
$10,872,000 Federal Home Loan Bank Discount Notes
5.40%, 11/2/98..................................... 10,870,369
11,629,000 Federal Home Loan Mortgage Discount Notes
5.42%, 11/2/98..................................... 11,627,249
-----------
Total Short-Term Investments (cost $22,497,618)...... 22,497,618
-----------
TOTAL INVESTMENTS -(COST $57,450,289)......... 99.7% 58,535,195
OTHER ASSETS AND LIABILITIES - NET............ 0.3 158,796
----- -----------
NET ASSETS -.................................. 100.0% $58,693,991
===== ===========

40
<PAGE>

SCHEDULE OF INVESTMENTS(continued)
October 31, 1998

* Non-income producing securities.
(a) 144A - Securities that may be resold to "qualified institutional buy-
ers" under Rule 144A of the Securities Act of 1933. These securities
have been determined to be liquid under guidelines established by the
Board of Trustees.

SUMMARY OF ABBREVIATIONS:
ADR American Depository Receipt
GDR Global Depository Receipt

At October 31, 1998, the Fund held securities in the following countries:

<TABLE>
<CAPTION>
MARKET PERCENTAGE OF
VALUE PORTFOLIO ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C>
United States+................................. $22,497,618 38.4%
Portugal....................................... 4,778,048 8.2%
Mexico......................................... 4,192,495 7.2%
Greece......................................... 4,160,436 7.1%
Hungary........................................ 4,141,785 7.1%
Morocco........................................ 3,303,162 5.6%
Brazil......................................... 3,011,011 5.1%
Czech Republic................................. 2,716,025 4.6%
Egypt.......................................... 2,357,451 4.0%
South Africa................................... 2,194,663 3.7%
Singapore...................................... 1,327,926 2.3%
Argentina...................................... 1,160,414 2.0%
Hong Kong...................................... 1,056,294 1.8%
Philippines.................................... 628,875 1.2%
Israel......................................... 423,800 0.7%
Croatia........................................ 357,210 0.6%
Poland......................................... 122,595 0.2%
Netherlands.................................... 105,387 0.2%
----------- ------
$58,535,195 100.0%
=========== ======
</TABLE>

+ Includes short-term investments

See Combined Notes to Financial Statements.

41
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------

SCHEDULE OF INVESTMENTS
October 31, 1998

<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>

COMMON STOCKS - 91.2%
AUSTRALIA - 0.8%
40,400 National Australia Bank, Ltd. ....................... $ 2,691,650
------------
BELGIUM - 2.4%
10,000 *Barco NV............................................ 2,664,522
3,500 Colruyt SA........................................... 2,925,197
500 *UCB SA.............................................. 2,918,251
------------
8,507,970
------------
CANADA - 4.2%
500,000 Bombardier, Inc., Cl. B.............................. 5,913,804
115,000 *Canadian Natural Resources, Ltd. ................... 2,012,314
120,000 Du Pont Canada, Inc., Cl. A.......................... 3,033,053
65,000 Magna International, Inc., Cl. A..................... 4,034,062
------------
14,993,233
------------
DENMARK - 1.0%
37,500 Coloplast AS......................................... 3,721,420
------------
FINLAND - 1.2%
45,000 Nokia Corp., ADR..................................... 4,187,812
------------
FRANCE - 4.5%
3,800 Carrefour SA......................................... 2,522,435
47,000 Hermes International................................. 3,552,980
220 L'Oreal.............................................. 125,722
33,320 Societe Technip...................................... 3,388,434
15,564 Sodexho Alliance..................................... 3,022,653
17,000 Synthelabo........................................... 3,243,399
------------
15,855,623
------------
GERMANY - 9.7%
24,000 Adidas AG............................................ 2,810,746
1,544 Allianz AG, Registered Shares........................ 529,425
65,000 Altana AG............................................ 4,394,808
4,000 Hugo Boss AG......................................... 5,493,510
180,050 RWE AG............................................... 9,760,634
15,000 SAP AG............................................... 6,293,390
7,000 Suedzucker AG........................................ 3,507,395
5,468 VEW AG............................................... 1,739,593
------------
34,529,501
------------
HONG KONG - 2.6%
181,000 Cheung Kong Holdings, Ltd. .......................... 1,238,606
2,945,775 First Pacific Ltd. .................................. 1,397,769
200,000 Henderson Land Development Co., Ltd. ................ 983,861
1,298,200 Hong Kong & China Gas Ltd. .......................... 1,843,796
34,843 Hong Kong Telecommunications, Ltd. .................. 69,731
121,000 Hong Kong Telecommunications, Ltd. ADS............... 2,427,562
1,635,000 National Mutual Asia Ltd. ........................... 1,118,851
6,000 *Peregrine Investments Holdings Ltd. ................ 0
------------
9,080,176
------------
IRELAND - 0.8%
14,396 CRH Plc.............................................. 210,893
190,620 CRH Plc, London Exchange............................. 2,775,652
------------
2,986,545
------------
ITALY - 3.6%
175,000 Benetton Group SpA ADS............................... $ 5,928,125
200,500 Industrie Natuzzi SpA ADS............................ 3,646,594
351,000 Luxottica Group SpA ADS.............................. 3,159,000
------------
12,733,719
------------
JAPAN - 4.6%
50,000 Kyodo Printing Co. .................................. 212,729
88,000 Nintendo Co., Ltd. .................................. 7,442,786
115,400 Seven-Eleven Japan Co. Ltd. ......................... 8,770,321
------------
16,425,836
------------
MALAYSIA - 0.3% (B)
134,000 Perusahaan Otomobil Nasional Berhad.................. 119,559
101,000 AMMB Holdings Berhad................................. 59,992
254,000 Commerce Asset Holding Berhad........................ 114,586
254,000 Malayan Banking Berhad............................... 292,832
92,000 Malaysian Oxygen Berhad.............................. 124,511
81,000 Nestle Malaysia Berhad............................... 263,910
180,000 RHB Capital Berhad................................... 78,045
166,000 United Engineers Ltd. Berhad......................... 91,113
------------
1,144,548
------------
NETHERLANDS - 5.2%
44,910 CSM NV, Certificates................................. 2,211,309
20,703 CSM NV, Ordinary..................................... 1,019,388
64,418 Getronics NV......................................... 2,671,945
50,555 IHC Caland NV........................................ 2,286,332
100,921 Numico Kon NV........................................ 3,969,972
80,000 VNU.................................................. 2,765,929
17,698 Wolters Kluwer NV.................................... 3,428,872
------------
18,353,747
------------
NORWAY - 0.5%
110,400 Orkla Sa............................................. 1,866,612
------------
PORTUGAL - 0.1%
3,496 Jeronimo Martins..................................... 151,432
2,000 Portugal Telecom SA.................................. 94,753
------------
246,185
------------
SPAIN - 1.6%
2,400 Endesa SA............................................ 60,486
155,500 Endesa SA, ADS....................................... 3,955,531
140,000 Prosegur, CIA de Seguridad SA........................ 1,694,590
------------
5,710,607
------------
SWEDEN - 2.8%
223,500 Astra AB ADS......................................... 3,673,781
15,733 Astra AB, Ser. A..................................... 254,961
140,000 Ericsson LM Telephone Co., ADR....................... 3,167,500
41,000 Hennes & Mauritz Cl. B............................... 2,888,804
------------
9,985,046
------------
SWITZERLAND - 3.0%
700 *Ems-Chemie Holding AG............................... 4,385,007
450 Nestle SA............................................ 956,246
75 Novartis AG.......................................... 134,915
</TABLE>

42
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------

SCHEDULE OF INVESTMENTS(continued)
October 31, 1998

<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>

COMMON STOCKS - CONTINUED
SWITZERLAND - CONTINUED
695 Novartis AG, Registered Shares....................... $ 1,251,236
79 Roche Holding AG..................................... 920,977
18 Roche Holding AG, Bearer Shares...................... 326,053
1,165 Schweizerische Rueckversicherungs-Gesellschaft....... 2,592,518
------------
10,566,952
------------
UNITED KINGDOM - 7.0%
17,100 Carlton Communications Plc........................... 122,781
37,500 Carlton Communications Plc ADS....................... 1,382,812
145,000 Granada Group Plc.................................... 2,185,391
135,000 Laporte Plc.......................................... 1,274,354
217,100 Lloyds TSB Group Plc................................. 2,679,780
270,000 Morgan Crucible Co. Plc.............................. 1,423,481
217,000 Next Plc............................................. 1,834,123
150,000 Pearson Publishing Plc............................... 2,615,992
280,200 Rentokil Initial Plc................................. 1,753,950
19,024 SmithKline Beecham Plc............................... 237,848
50,000 SmithKline Beecham Plc, ADR.......................... 3,187,500
125,000 Smiths Industries Plc................................ 1,673,699
180,000 TI Group Plc......................................... 1,072,506
17,500 Vodafone Group Plc ADR............................... 2,355,937
156,307 Williams Plc......................................... 975,155
------------
24,775,309
------------
UNITED STATES - 35.3%
65,900 AlliedSignal, Inc. .................................. 2,565,981
60,000 Armstrong World Industries, Inc. .................... 3,720,000
61,600 Avon Products, Inc. ................................. 2,444,750
41,000 Campbell Soup Co. ................................... 2,185,813
70,000 Caterpillar, Inc. ................................... 3,150,000
80,625 *Cisco Systems, Inc. ................................ 5,079,375
107,500 Citigroup, Inc. ..................................... 5,059,219
18,400 Coca Cola Co. ....................................... 1,244,300
75,000 Compaq Computer Corp. ............................... 2,371,875
55,000 Computer Associates International, Inc. ............. 2,165,625
64,800 Deere & Co. ......................................... 2,292,300
72,900 Disney Walt Co. (The)................................ 1,963,744
57,800 Du Pont (E. I.) De Nemours & Co. .................... 3,323,500
68,000 Federal National Mortgage Association................ 4,815,250
35,800 Gannett Co., Inc. ................................... 2,215,125
45,000 Gap, Inc. ........................................... 2,705,625
69,000 General Electric Co. ................................ 6,037,500
45,000 Halliburton Co. ..................................... 1,617,188
90,000 Home Depot, Inc. .................................... 3,915,000
41,200 Intel Corp. ......................................... 3,674,525
130,000 Marriott International, Inc. ........................ 3,493,750
75,350 Marsh & McLennan Co., Inc. .......................... 4,181,925
91,000 Maytag Corp. ........................................ 4,498,812
119,775 MBNA Corp. .......................................... 2,732,367
34,000 Merck & Co., Inc. ................................... 4,598,500
57,000 *Microsoft Corp. .................................... 6,034,875
17,000 Morgan Stanley, Dean Witter, Discover & Co. ......... 1,100,750
90,000 Norwest Corp. ....................................... 3,346,875
51,167 *Oracle Systems Corp. ............................... 1,512,624
146,000 *Parametric Technology Corp. ........................ 2,427,250
34,000 Schering-Plough Corp. ............................... 3,497,750
50,000 Schwab (Charles) & Co., Inc. ........................ 2,396,875
50,000 SLM Holding Corp. ................................... 2,003,125
37,500 *Sodexho Marriott Services, Inc. .................... 1,209,378
70,000 SunAmerica, Inc. .................................... 4,935,000
67,500 Sundstrand Corp. .................................... 3,168,281
75,000 TJX Co., Inc. ....................................... 1,420,313
26,000 Tribune Co. ......................................... 1,498,250
30,000 TRW, Inc. ........................................... 1,708,125
101,200 Wal-Mart Stores, Inc. ............................... 6,982,800
------------
125,294,320
------------
Total Common Stocks
(cost $281,077,057)................................. 323,656,811
------------
PREFERRED STOCKS - 0.3%
GERMANY - 0.3%
25,000 RWE AG (cost $966,606)............................... 913,070
------------
WARRANTS - 0.0% (A)
HONG KONG - 0.0% (A)
43,100 *Hong Kong & China Gas warrants exp 9/30/99.......... 4,452
------------
MALAYSIA - 0.0% (A)(B)
26,750 *Commerce Asset Holding, Warrants @ 7.45MYR expire
3/16/02............................................. 2,815
------------
Total Warrants
(cost $16,302)...................................... 7,267
------------
<CAPTION>
Principal
Amount
<C> <S> <C>

U.S. GOVERNMENT & AGENCY
OBLIGATIONS - 1.5%
UNITED STATES - 1.5%
U.S. Treasury Bonds
$1,430,000 11.75%, 11/15/14.................................... 2,248,677
500,000 7.50%, 11/15/16..................................... 623,907
325,000 7.25%, 8/15/22...................................... 405,336
988,000 7.63%, 11/15/22..................................... 1,283,474
400,000 U.S. Treasury Notes
6.25%, 2/15/03..................................... 429,124
U.S. Treasury STRIPS
350,000 Effective yield 4.70%, 2/15/05...................... 263,143
350,000 Effective yield 4.57%, 8/15/05...................... 255,707
------------
Total U.S. Government & Agency Obligations
(cost $4,735,798).................................. 5,509,368
------------
</TABLE>

43
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Global Leaders Fund
- --------------------------------------------------------------------------------

SCHEDULE OF INVESTMENTS(continued)
October 31, 1998

<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C> <C>

SHORT-TERM INVESTMENTS - 3.0%
UNITED STATES - 3.0%
$8,825,000 Federal Home Loan Bank Discount Notes
4.91%, 11/27/98..................................... $ 8,793,706
Federal Home Loan Mortgage Discount Notes
1,475,000 4.78%, 11/23/98...................................... 1,470,691
500,000 4.84%, 11/23/98...................................... 498,521
------------
Total Short-Term Investments (cost $10,762,918)...... 10,762,918
------------
TOTAL INVESTMENTS -(COST $297,558,681)........ 96.0% 340,849,434
OTHER ASSETS AND LIABILITIES - NET............ 4.0 14,076,045
----- ------------
NET ASSETS -.................................. 100.0% $354,925,479
===== ============
</TABLE>

* Non-income producing securities
(a) Less than one-tenth of one percent.
(b) Investments are being fair valued in accordance with procedures established
by the Board of Trustees.

SUMMARY OF ABBREVIATIONS:
ADR American Depository Receipts
ADS American Depository Shares
MYR Malaysian Ringget
STRIPS Separately Traded Registered and Interest Principal Security

At October 31, 1998, the Fund held securities in the following indus-
tries:

<TABLE>
<CAPTION>
MARKET PERCENTAGE OF
VALUE PORTFOLIO ASSETS
- -------------------------------------------------------------------------------
<S> <C> <C>
Healthcare Products & Services............... $ 35,520,399 10.4%
Information Services & Technology............ 32,231,484 9.5%
Finance & Insurance.......................... 31,525,297 9.2%
Retailing & Wholesale........................ 31,475,404 9.2%
Food & Beverage Products..................... 18,380,985 5.4%
Consumer Products & Services................. 18,158,664 5.3%
Textile & Apparel............................ 17,785,361 5.2%
U.S. Goverrnment & Agency Obligations........ 16,272,286 4.8%
Utilities-Electric........................... 14,689,720 4.3%
Industrial Specialty Products & Services..... 14,425,502 4.2%
Building, Construction & Furnishings......... 14,101,092 4.1%
Telecommunication Services & Equipment....... 12,303,297 3.6%
Publishing, Broadcasting & Entertainment..... 11,596,764 3.4%
Electrical Equipment & Services.............. 10,945,374 3.2%
Chemical & Agricultural Products............. 10,866,071 3.2%
Banks........................................ 9,203,768 2.7%
Diversified Companies........................ 8,576,568 2.5%
Real Estate.................................. 6,925,594 2.0%
Automotive Equipment & Manufacturing......... 5,861,746 1.7%
Capital Goods................................ 5,442,300 1.6%
Advertising & Related Services............... 4,831,117 1.5%
Energy....................................... 4,298,646 1.4%
Other........................................ 5,431,995 1.6%
------------ -----
$340,849,434 100.0%
============ =====
</TABLE>

See Combined Notes to Financial Statements.

44
<PAGE>

SCHEDULE OF INVESTMENTS
October 31, 1998

<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>

COMMON STOCKS - 88.5%
AEROSPACE & MILITARY TECHNOLOGY - 2.0%
14,400 Alliant Techsystems, Inc. ........................... $ 1,008,000
588,490 Alvis Plc............................................ 1,822,167
72,696,030 Empresa Brasileira de Aeronautica.................... 761,758
10,666 Gilat Satellite Networks Ltd. ....................... 495,969
------------
4,087,894
------------
AUTOMOBILES - 1.9%
16,000 Autobacs Seven Co. .................................. 517,413
44,340 Brembo SpA........................................... 473,270
302,914 Pressac Holdings Plc................................. 988,624
61,450 SAI Automotive AG.................................... 704,830
109,000 Suzuki Motor Corp. .................................. 1,253,809
------------
3,937,946
------------
BANKING - 3.9%
512,400 Anglo Irish Bank Corp. .............................. 1,239,509
168,000 Den Norske Bank AS................................... 590,915
53,800 Dime Community Bancorp, Inc. ........................ 1,279,431
23,600 Investors Financial Services Corp. .................. 1,268,500
37,200 SIS Bancorp, Inc. ................................... 1,474,050
11,200 Telebanc Financial Corp. ............................ 203,000
518 Verwalt & Private Bank............................... 1,930,126
------------
7,985,531
------------
BEVERAGES & TOBACCO - 2.9%
28,300 *Baron de Ley SA..................................... 945,275
35,000 Chukyo Coca Cola..................................... 300,223
29,000 Kinki Coca Cola Bottling............................. 378,109
45,000 Kirin Beverage Corp. ................................ 864,642
26,270 Pernod Ricard SA..................................... 1,749,474
198,170 *Swedish Match Co. AB................................ 698,139
11,265 Uniao Cervjeira SA................................... 262,540
21,900 Universal Corp....................................... 817,144
------------
6,015,546
------------
BROADCASTING & PUBLISHING - 2.1%
68,000 *Big Flower Holdings, Inc. .......................... 1,326,000
18,920 Endemol Entertainment NV............................. 576,172
22,500 *Hearst-Argyle Television, Inc. ..................... 624,375
30,600 *Jacor Communications, Inc. ......................... 1,684,912
------------
4,211,459
------------
BUSINESS & PUBLIC SERVICES - 16.2%
49,900 *ADVO, Inc. ......................................... 1,269,331
2,776,598 Aegis Group Plc...................................... 4,298,650
1,500 Altran Technologies SA............................... 293,472
32,300 Asatsu, Inc. ........................................ 598,456
8,716 Assystem SA.......................................... 217,276
287,833 Capita Group Plc..................................... 2,895,292
232,126 Compass Group........................................ 2,350,480
182,578 Computershare Ltd. .................................. 776,515
236,800 Cordiant Commerce Plc................................ 420,112
179,005 Corporate Services Group Plc......................... 446,405
7,847 Dauphin O.T.A. ...................................... 632,602
39,600 *Diamond Technology Partners Inc. ................... 496,238
766 Edipresse SA......................................... 209,120
28,500 *Forrester Research, Inc. ........................... 928,031
31,480 Fugro NV............................................. 852,518
21,040 GTI Holding NV....................................... 563,034
58,600 Hon Industries, Inc. ................................ 1,241,587
45,000 Koninklijke Ahrend Groep NV.......................... 912,789
71,100 Labor Ready Inc. .................................... 1,279,800
40,700 Lamar Advertising Co. ............................... 1,270,603
10,300 Market Facts, Inc. .................................. 247,844
59,000 *Maximus, Inc. ...................................... 1,711,000
30,000 Metzler Group Inc. .................................. 1,252,500
66,700 *MSC Industrial Direct Co., Inc. Cl. A............... 1,417,375
225,742 Parity Plc........................................... 1,709,654
32,500 *Policy Management Systems Corp. .................... 1,476,719
82,400 *Rental Service Corp. ............................... 1,833,400
560 Schmalbach Lubeca AG................................. 85,361
1,525 Societe Generale D'Affichage......................... 568,232
20,600 *Superior Consultant, Inc. .......................... 767,350
------------
33,021,746
------------
CHEMICALS - 1.2%
102,800 Agribiotech Inc. .................................... 1,468,112
32,300 *Scotts Co., Cl. A................................... 1,078,013
------------
2,546,125
------------
CONSTRUCTION - 0.9%
59,844 Berkeley Group Plc................................... 511,321
474 Grohe (Friedrich) AG................................. 136,491
242,000 Nishimatsu Construction.............................. 1,245,497
------------
1,893,309
------------
DATA PROCESSING &
REPRODUCTION - 3.3%
9,994 *ATOS SA............................................. 1,885,151
25,600 Dassault Systemes SA................................. 976,835
30,300 Exodus Communications, Inc. ......................... 960,131
18,000 Logica............................................... 607,804
80,450 Sage Group Plc....................................... 1,726,875
14,500 WM-Data AB........................................... 527,543
------------
6,684,339
------------
EDUCATION - 2.4%
40,500 *Apollo Group, Inc. ................................. 1,298,531
81,061 *Bright Horizons Family Solutions, Inc. ............. 1,499,628
22,700 Career Education Corp. .............................. 561,825
168,300 *Computer Learning Centers, Inc. .................... 1,501,552
------------
4,861,536
------------
ELECTRICAL & ELECTRONICS - 1.5%
52,000 Cable Design Technologies Corp. ..................... 858,000
18,600 *Solectron Corp. .................................... 1,064,850
26,600 Superior Telecom, Inc. .............................. 1,143,800
------------
3,066,650
------------
ELECTRONIC COMPONENTS - 1.9%
67,400 Artisan Components, Inc. ............................ 499,181
25,700 *Lattice Semiconductor Corp. ........................ 875,407
</TABLE>

45
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Global Opportunities Fund
- --------------------------------------------------------------------------------

SCHEDULE OF INVESTMENTS(continued)
October 31, 1998

<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>

COMMON STOCKS - CONTINUED
ELECTRONIC COMPONENTS - CONTINUED
10,300 Mabuchi Motor Co. ................................... $ 671,470
1,147 Phoenix Meccano AG................................... 617,804
166,900 Renishaw Plc......................................... 949,757
12,000 *Sipex Corp. ........................................ 332,250
------------
3,945,869
------------
ENERGY SOURCES - 1.4%
52,700 Newfield Exploration Co. ............................ 1,281,269
148,800 *Newpark Resources, Inc. ............................ 1,404,300
23,200 *Seven Seas Petroleum, Inc. ......................... 204,450
------------
2,890,019
------------
FINANCIAL SERVICES - 3.0%
27,284 Banco Comercial Portugues SA......................... 854,095
128,850 Close Brothers Group Plc............................. 1,213,066
26,650 Custos AB............................................ 573,559
27,400 *First Alliance Co. ................................. 150,700
2,700 *Freedom Securities Corp. ........................... 36,787
16,000 Orix Corp. .......................................... 1,145,994
3,730 *Societe Eurafrance SA............................... 1,893,902
149,858 Tyndall Australia Ltd. .............................. 181,834
------------
6,049,937
------------
FOOD & HOUSEHOLD PRODUCTS - 5.4%
15,300 *Dominick's Supermarkets, Inc. ...................... 746,831
70,656 Gerresheimer Glas AG................................. 1,023,691
171,000 Hazlewood Foods...................................... 445,045
2,110 Hero AG.............................................. 1,331,108
33,970 Julius Meinl International........................... 699,661
1,401 Lindt & Spruengli AG................................. 3,354,420
8,800 Matsumotokiyoshi..................................... 332,132
19,586 Nutreco Holding NV................................... 665,638
54,250 *Telepizza........................................... 442,904
7,120 Valora Holding AG.................................... 1,914,882
------------
10,956,312
------------
HEALTH & PERSONAL CARE - 7.1%
37,800 *Access Health, Inc. ................................ 1,363,163
54,400 Ballard Medical Products............................. 1,156,000
22,800 Bergen Brunswig Corp. ............................... 1,112,925
176,143 Cochlear Ltd. ....................................... 893,027
45,000 *Cyberonics, Inc. ................................... 271,406
96,739 Getinge Industrier AB, Ser. B........................ 1,487,148
10,400 Grand Optical Photoservice........................... 268,615
91,550 *Health Management Associates, Inc. Cl. A............ 1,630,734
50,500 *Helen of Troy Ltd. ................................. 748,031
24,400 *Idexx Laboratories, Inc. ........................... 557,388
8,900 Kuraya Corp. ........................................ 91,993
77,715 London International Group Plc....................... 269,248
25,100 *Pediatrix Medical Group, Inc. ...................... 1,170,288
1,221 Phonak Holding AG.................................... 1,351,361
7,400 Pigeon Corp. ........................................ 36,816
790,803 Sonic Healthcare Ltd. ............................... 1,112,867
10,600 Suzuken Co Ltd. ..................................... 209,127
125,342 Westminster Healthcare Holdings Plc.................. 543,343
16,000 Whatman.............................................. 198,166
------------
14,471,646
------------
INDUSTRIAL COMPONENTS - 3.1%
43,000 *Asyst Technologies, Inc. ........................... 516,000
69,700 Cuno Inc. ........................................... 1,054,212
265,195 Interpump Group SpA.................................. 1,070,776
40,500 Kaydon Corp. ........................................ 1,422,563
43,000 *Pri Automation, Inc. ............................... 745,781
64,400 Roper Industries, Inc. .............................. 1,147,125
42,400 THK Co. ............................................. 436,438
------------
6,392,895
------------
INSURANCE - 3.5%
85,500 Irish Life Plc....................................... 757,937
12,894 Mapfre Vida Seguros.................................. 521,765
92,300 Mediolanum SpA....................................... 2,296,874
23,600 Pohjola Group Insurance Corp. ....................... 964,986
19,830 Scor................................................. 1,137,140
373,100 Sedgwick Group Plc................................... 1,401,906
------------
7,080,608
------------
LEISURE & TOURISM - 2.1%
71,711 Games Workshop Group Plc............................. 666,126
495 Kuoni Reisen Holding AG.............................. 1,767,727
136,163 Millennium & Copthorne Hotels Plc.................... 835,238
578,418 Vardon Plc........................................... 1,031,024
------------
4,300,115
------------
MACHINERY & ENGINEERING - 4.1%
610,658 Ashtead Group Plc.................................... 1,993,013
24,000 Astec Industries Inc. ............................... 1,227,000
118,866 Boewe Systec AG...................................... 4,700,104
6,800 Sidel................................................ 501,809
------------
8,421,926
------------
METALS - NON FERROUS - 1.1%
31,416 GFI Industries....................................... 1,176,707
20,725 KM Europa Metal AG................................... 1,107,252
------------
2,283,959
------------
MULTI-INDUSTRY - 1.2%
380,247 DCC Plc.............................................. 2,370,984
------------
TECHNOLOGY - 5.5%
53,900 *Broadvision, Inc. .................................. 810,185
5,300 Comverse Technology, Inc. ........................... 244,297
38,900 *CSG Systems International, Inc. .................... 2,122,481
60,200 *Electronics for Imaging, Inc. ...................... 1,450,444
66,500 *FileNet Corp. ...................................... 608,891
29,900 *IDX Systems Corp. .................................. 1,270,750
29,900 *Mercury Interactive Corp. .......................... 1,238,981
50,500 *Platinum Software Corp. ............................ 471,859
29,900 *PMC-Sierra, Inc. ................................... 1,343,631
237,600 *Radiant Systems, Inc. .............................. 1,588,950
------------
11,150,469
------------
</TABLE>

46
<PAGE>

SCHEDULE OF INVESTMENTS(continued)
October 31, 1998

<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>

COMMON STOCKS - CONTINUED
TELECOMMUNICATIONS - 2.5%
91,700 *Antec Corp. ........................................ $ 1,515,916
10,226 Ericsson SpA......................................... 416,637
47,300 ITC Deltacom......................................... 821,837
9,300 Netcom Systems AB.................................... 349,078
142,500 *Premiere Technologies, Inc.......................... 781,523
53,000 *Vanguard Cellular Systems, Inc. Cl. A............... 1,217,344
------------
5,102,335
------------
TEXTILES - 0.9%
1,398 Deveaux SA........................................... 205,074
170,900 *Donna Karan International, Inc. .................... 1,281,750
27,000 Wacoal Corp ......................................... 307,565
------------
1,794,389
------------
TRANSPORTATION - ROADS & RAIL - 1.6%
58,000 *Coach USA, Inc. .................................... 1,555,125
114,000 *Covenant Transport, Inc. Cl. A...................... 1,713,562
50 *National R. V. Holdings, Inc. ...................... 1,130
------------
3,269,817
------------
UTILITIES - ELECTRIC, GAS &
WATER - 0.1%
27,500 Transportadora de Gas del Sur SA, ADR ("TGS")........ 283,594
------------
WHOLESALE & INTERNATIONAL
TRADE - 5.7%
74,000 Caseys General Stores, Inc. ......................... 1,042,938
27,400 Cortefiel SA......................................... 676,928
1,983 Danzas Holding AG.................................... 545,753
76,900 *Gadzooks, Inc. ..................................... 622,409
108,700 *Goodys Family Clothing, Inc. ....................... 1,165,128
97,813 Laurus NV............................................ 2,460,428
31,608 Lindex AB............................................ 971,806
2,550 Moebel Walther AG.................................... 104,679
51,213 Norbert Dentressangle................................ 1,944,027
15,000 Shimamura Co. ....................................... 594,441
84,200 *Stage Stores, Inc. ................................. 1,115,650
4,050 *Tag Heuer International SA.......................... 264,462
7,000 Yamada Denki Co. .................................... 126,094
------------
11,634,743
------------
Total Common Stocks
(cost $160,185,287)............................... 180,711,698
------------
MUTUAL FUND SHARES - 0.2%
13,350 Orange Fund NV
(cost $496,129)................................... 487,285
------------

<CAPTION>
Principal
Amount
<C> <S> <C>
REPURCHASE AGREEMENT - 13.8%
$28,167,000 Keystone Joint Repurchase Agreement, Investments in
repurchase agreements, in a joint trading account,
purchased 10/30/98, 5.50% maturing 11/2/98,
maturity value $28,179,910 (cost $28,167,000)
(a)............................................... 28,167,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS -(COST $188,848,416)....... 102.5% 209,365,983
OTHER ASSETS AND LIABILITIES - NET........... (2.5) (5,200,274)
----- ------------
NET ASSETS -................................. 100.0% $204,165,709
===== ============
</TABLE>
* Non-income producing securities.
(a) The repurchase agreements are fully collateralized by U.S. government
and/or agency obligations based on market prices plus accrued inter-
est at October 31, 1998.

SUMMARY OF ABBREVIATIONS:
ADR American Depository Receipt

See Combined Notes to Financial Statements.

47
<PAGE>

SCHEDULE OF INVESTMENTS(continued)
October 31, 1998

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Forward Foreign Currency Exchange Contracts to Sell:

<TABLE>
<CAPTION>
EXCHANGE U.S. VALUE AT IN EXCHANGE UNREALIZED
DATE CONTRACTS TO DELIVER OCTOBER 31, 1998 FOR U.S. $ DEPRECIATION
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/27/99 1,768,214 Australian Dollar $1,107,419 $1,097,000 $10,419
=======
</TABLE>

At October 31, 1998, the Fund held securities in the following countries.

<TABLE>
<CAPTION>
MARKET PERCENTAGE OF
VALUE PORTFOLIO ASSETS
------------ ----------------
<S> <C> <C>
United States*.................................... $107,164,724 51.2%
United Kingdom.................................... 28,071,346 13.4%
Switzerland....................................... 13,854,994 6.6%
France............................................ 12,882,085 6.2%
Japan............................................. 9,110,219 4.4%
Germany........................................... 7,862,407 3.8%
Netherlands....................................... 6,517,864 3.1%
Sweden............................................ 4,607,274 2.2%
Ireland........................................... 4,368,430 2.1%
Italy............................................. 4,257,557 2.0%
Australia......................................... 2,964,243 1.4%
Spain............................................. 2,586,873 1.2%
Portugal.......................................... 1,116,635 0.5%
Finland........................................... 964,986 0.5%
Brazil............................................ 761,757 0.4%
Austria........................................... 699,661 0.3%
Norway............................................ 590,915 0.3%
Israel............................................ 495,969 0.2%
Argentina......................................... 283,594 0.1%
Canada............................................ 204,450 0.1%
------------ -----
$209,365,983 100.0%
============ =====
</TABLE>

* Includes short-term investments

See Combined Notes to Financial Statements.

48
<PAGE>

SCHEDULE OF INVESTMENTS
October 31, 1998

<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>

COMMON STOCKS - 81.4%
AEROSPACE & MILITARY
TECHNOLOGY - 0.2%
187,900 British Aerospace................................... $ 1,390,037
-----------
AUTOMOBILES - 3.7%
40,500 Autobacs Seven Co................................... 1,309,702
310 Bayer Motoren Werk.................................. 211,470
1,550 Bayer Motoren Werk AG............................... 1,091,971
117,183 Compagnie Generale des Etablissements Michelin Cl.
B.................................................. 4,829,984
42,250 Daimler-Benz AG..................................... 3,277,468
242,000 GKN PLC............................................. 2,940,555
755,100 Rolls-Royce Plc..................................... 2,786,701
477,000 Suzuki Motor Corp................................... 5,486,850
70,700 Volvo AB, Ser. B.................................... 1,526,127
-----------
23,460,828
-----------
BANKING - 6.1%
33,000 Allied Irish Banks.................................. 476,612
207,000 Anglo Irish Bank Corp. ............................. 500,738
195,768 Argentaria Corp Bc.................................. 4,259,754
18,666 Banco Mello SA...................................... 205,429
39,440 Banco Popular Espana SA............................. 2,435,951
1,474 Barclays Bank Plc................................... 31,751
1,280 Bco Santander SA, Registered Shares................. 23,898
10,923 Dexia Belgium (Credit Communal)..................... 1,773,111
48,180 Hypo Vereinsbank AG................................. 3,824,733
451,300 National Australia Bank Ltd......................... 5,984,030
279,550 National Bank of Canada............................. 4,185,097
218,000 Sumitomo Bank Ltd................................... 2,141,105
172,540 Svenska Handelsbanken, Ser. A....................... 7,261,003
55,850 Unidanmark AS, Registered Shares.................... 4,256,589
419 Verwalt & Private Bank.............................. 1,561,241
-----------
38,921,042
-----------
BEVERAGES & TOBACCO - 4.6%
178,000 Bass................................................ 2,162,888
397,393 British America Tobacco............................. 3,570,011
263,277 Diageo Plc.......................................... 2,842,170
1,238,000 Fosters Brewing Group Ltd. ......................... 3,043,026
513,300 Gallaher Group Plc.................................. 3,522,350
114,670 Heineken NV......................................... 6,106,487
98,300 Imperial Tobacco.................................... 1,001,955
41,350 Pernod Ricard SA.................................... 2,753,739
210,000 Rembrandt Controlling Investments Ltd............... 853,506
65,200 Rembrandt Group Ltd. ............................... 434,472
133,050 Scot & Newcastle.................................... 1,621,152
283,270 Swedish Match Co. AB................................ 997,941
139,700 Technical & Industrial Investments Ltd.............. 424,279
-----------
29,333,976
-----------
BROADCASTING & PUBLISHING - 2.9%
394,250 Arn Mondadori Edit SpA.............................. 4,364,391
16,662 Dauphin O.T.A....................................... 1,343,240
125,605 Quebecor, Inc., Cl. B............................... 2,547,917
2,929,000 Seat Pagine Gille................................... 1,831,128
3,115 Springer (Axel) Verlag AG........................... 2,143,737
36,850 VNU................................................. 1,274,056
26,305 Wolters Kluwer NV................................... 5,096,422
-----------
18,600,891
-----------
BUILDING MATERIALS &
COMPONENTS - 0.6%
743,800 Fletcher Challenge Building, ADR.................... 984,698
16,776 Lafarge SA.......................................... 1,715,072
793,000 Pilkington Plc...................................... 875,980
-----------
3,575,750
-----------
BUSINESS & PUBLIC SERVICES - 4.9%
17,516 *ATOS SA............................................ 3,304,013
19,200 Cap Gemini.......................................... 2,885,581
250,834 Compass Group....................................... 2,539,915
438,550 Cordiant Commerce Plc............................... 778,041
9,684 Edipresse SA........................................ 2,643,754
510,000 Fujitsu Ltd......................................... 5,424,601
55,600 *ISS International Service System AS, Ser. B........ 3,751,985
93,000 Mayne Nickless Ltd.................................. 429,271
132,000 Pearson Publishing Plc.............................. 2,302,073
422,350 Saatchi & Saatchi Plc............................... 819,989
1,100 Schmalbach Lubeca AG................................ 167,673
25,000 Secom Co. Ltd....................................... 1,854,949
90,700 Telegraaf Holdings NV Certificate................... 2,291,225
73,121 *Vedior............................................. 1,862,806
-----------
31,055,876
-----------
CHEMICALS - 0.2%
62,000 Shin Etsu Chem Co................................... 1,233,831
-----------
CONSTRUCTION - 0.0% (B)
12,200 *Grassetto SpA...................................... 756
-----------
ELECTRONIC COMPONENTS - 1.7%
33,155 Philips Electronics NV.............................. 1,763,818
37,000 Rohm Co. Ltd. ...................................... 3,269,000
97,782 Smiths Industries Plc............................... 1,309,261
46,300 Sony Corp........................................... 2,938,926
52,000 Tokyo Electron...................................... 1,690,513
-----------
10,971,518
-----------
ENERGY SOURCES - 5.2%
485,500 British Energy...................................... 4,745,472
275,039 British Petroleum Co. Plc........................... 4,037,116
255,967 ENI SpA............................................. 1,522,173
1,301,218 Lasmo............................................... 3,702,340
27,736 OMV AG.............................................. 2,601,626
30,650 Repsol SA (RG)...................................... 1,538,375
83,604 Societe Nationale Elf Aquitaine SA.................. 9,675,727
46,610 Total SA, Cl. B..................................... 5,377,529
-----------
33,200,358
-----------
FINANCIAL SERVICES - 4.5%
468,376 Allied Zurich....................................... 5,565,835
218,550 Close Brothers Group Plc............................ 2,057,551
</TABLE>

49
<PAGE>

SCHEDULE OF INVESTMENTS(continued)
October 31, 1998

<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>

COMMON STOCKS - CONTINUED
FINANCIAL SERVICES - CONTINUED
1,401,000 Ina Ist Naz Ass..................................... $ 3,858,080
17,100 Investor AB......................................... 665,949
100,700 Lend Lease Corp. ................................... 2,223,104
81,700 Orix Corp. ......................................... 5,851,733
8,800 Perpetual Plc....................................... 376,315
5,599 *Societe Eurafrance SA.............................. 2,842,884
92,279 *Societe Genrale d'Enterprises SA................... 4,434,654
191,900 Tegniese Beleggings Korp BPK........................ 562,244
------------
28,438,349
------------
FOOD & HOUSEHOLD PRODUCTS - 7.9%
1,160,000 Burns Philp & Co., Ltd.............................. 61,669
43,600 CSM NV, Certificates................................ 2,146,806
5,300 Gerresheimer Glas AG................................ 76,788
155,000 Greencore Group Plc................................. 605,508
9,100 Groupe Danone....................................... 2,406,073
4,830 Hero AG............................................. 3,047,038
65,016 Huhtamaki Group..................................... 2,180,965
149,465 Koninklijke Ahold NV................................ 4,967,634
136,725 Laurus NV........................................... 3,439,255
1,094 Lindt & Spruengli AG................................ 2,619,368
6,648 Nestle SA........................................... 14,126,939
98,500 Reckitt & Colman Plc................................ 1,702,997
142,646 Unilever NV CVA..................................... 10,581,357
214,800 Unilever, GBP....................................... 2,157,063
------------
50,119,460
------------
HEALTH & PERSONAL CARE - 14.3%
347,482 Astra AB, Ser. A.................................... 5,631,114
9,100 Bayer AG............................................ 369,713
39,800 Biora AB, ADR....................................... 728,837
80,400 Degussa AG.......................................... 3,858,618
16,230 Fresenius AG........................................ 2,782,566
51,000 *Fresenius Medical Care AG.......................... 2,355,267
41,600 Getinge Industrier AB, Ser. B....................... 639,508
191,157 Glaxo Wellcome Plc.................................. 5,938,073
74,700 Hoechst AG.......................................... 3,120,580
8,000 Hoya Corp. ......................................... 342,426
397,000 Kao Corp............................................ 8,036,713
583,200 London International Group Plc...................... 2,020,530
1,722 Novartis AG......................................... 3,097,643
4,172 Novartis AG, Registered Shares...................... 7,509,387
140,937 Pharmacia & Upjohn, Inc............................. 7,203,928
253,477 Rhone-Poulenc SA, Cl. A............................. 11,588,250
747 Roche Holding AG.................................... 8,708,478
83,000 Sankyo Co. ......................................... 1,872,448
134,660 Smithkline Beecham.................................. 1,683,591
19,600 SmithKline Beecham Plc, ADR......................... 1,249,500
1,393,137 Sonic Healthcare Ltd................................ 1,960,509
246,000 Taisho Pharmaceutical Co............................ 6,583,633
1,900 Wella AG............................................ 1,364,926
46,000 Yamanouchi Pharmaceutical Co., Ltd.................. 1,317,893
26,820 Zeneca Group........................................ 1,029,745
------------
90,993,876
------------
INDUSTRIAL COMPONENTS - 2.3%
31,666 Abb AB.............................................. 334,671
24,370 Compagnie de Saint Gobain........................... 3,605,562
657,153 Cookson Group Plc................................... 1,374,845
76,500 McKechnie........................................... 426,366
1,210,150 Siebe Plc........................................... 4,962,296
644,307 Williams Plc........................................ 4,019,647
------------
14,723,387
------------
INSURANCE - 4.1%
36,630 Aegon NV............................................ 3,177,887
12,630 Allianz AG.......................................... 4,330,721
77,000 Assicruz Generali................................... 2,756,793
23,671 AXA-UAP............................................. 2,675,604
23,320 Fortis Amev NV...................................... 1,513,937
26,000 Hannover Rueckversicherungs AG...................... 2,997,887
846 Liberty Life Association of Africa, Ltd............. 14,509
6,100 Munchener Ruckvers Dem 10 VINK...................... 2,791,307
244 Munchener Ruckvers Dem 10........................... 111,063
220,400 Royal & Sun Alliance Insurance Group Plc............ 2,017,791
60,670 Scor................................................ 3,479,088
580 Zurich Allied AG.................................... 352,203
------------
26,218,790
------------
LEISURE & TOURISM - 0.8%
94,000 Fuji Photo Film Co. ................................ 3,442,957
468,430 Ladbroke Group Plc.................................. 1,715,024
------------
5,157,981
------------
MACHINERY & ENGINEERING - 2.5%
71,609 Boewe Systec AG..................................... 2,831,506
247,691 Electrolux AB....................................... 3,728,375
57,000 Gea AG.............................................. 1,455,539
4,615 KSB AG.............................................. 741,074
63,613 Mannesmann AG....................................... 6,259,534
67,266 Rauma Oy............................................ 794,428
------------
15,810,456
------------
MERCHANDISING - 2.6%
18,960 Karstadt AG......................................... 9,671,717
614,150 New Clicks Holdings................................. 630,882
3,900 Promodes, Inc....................................... 2,456,146
21,000 Seven-Eleven Japan Co. Ltd.......................... 1,595,986
88,500 Vendex Non Food..................................... 2,249,859
------------
16,604,590
------------
METALS - NON FERROUS - 0.6%
85,800 Assa Abloy AB, Ser. B............................... 3,418,371
------------
METALS - STEEL - 0.0% (B)
4,450 KM Europa Metal AG.................................. 237,745
------------
MINING - 0.3%
24,150 Potash Corp. of Saskatchewan, Inc................... 1,666,867
------------
MULTI-INDUSTRY - 4.4%
35,948 Eaux Cie Generale................................... 8,210,733
32,400 Hagemeyer NV........................................ 1,019,626
</TABLE>

50
<PAGE>

SCHEDULE OF INVESTMENTS(continued)
October 31, 1998

<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>

COMMON STOCKS - CONTINUED
MULTI-INDUSTRY - CONTINUED
39,300 Kinnevik Investments................................ $ 1,016,987
4,060 Marine- Wendel SA................................... 662,795
10,100 Preussag AG......................................... 3,725,385
79,000 Rentokil Initial Plc................................ 494,511
72,100 Suez Lyonn Eaux..................................... 12,912,309
------------
28,042,346
------------
TELECOMMUNICATIONS - 4.3%
88,000 Ericsson LM Telephone Company, ADR.................. 1,993,750
85,300 Ericsson LM Telephone Company, Series B............. 1,923,239
7,250 France Telecom...................................... 505,656
21,500 Nokia Corp. ADR..................................... 1,999,500
417,200 *Orange Plc......................................... 3,878,875
507,500 Telecom Italia Mobile (TIM) SpA..................... 2,945,236
1,748,493 Telecom Italia SpA.................................. 12,637,395
113,807 Vodafone Group Plc.................................. 1,523,829
------------
27,407,480
------------
TRANSPORTATION - AIRLINES - 0.1%
37,800 SAS Danmark AS...................................... 533,569
------------
TRANSPORTATION - ROADS & RAIL - 0.1%
28,090 Railtrack Group..................................... 754,578
------------
TRANSPORTATION - SHIPPING - 0.3%
63,700 Pakhoed NV Kon...................................... 1,568,252
------------
UTILITIES - ELECTRIC, GAS & WATER - 2.0%
59,230 Berliner Kraft & Licht AG........................... 3,521,977
160,200 Endesa S.A.......................................... 4,037,413
212,000 Scottish Power Plc, ADR............................. 2,086,366
110,450 Southern Electric................................... 1,135,041
98,050 Thames Water........................................ 1,818,297
15,000 Thames Water B Shares............................... 18,829
------------
12,617,923
------------
WHOLESALE & INTERNATIONAL TRADE - 0.2%
38,924 Norbert Dentressangle............................... 1,477,541
------------
Total Common Stocks
(cost $467,753,072)................................ 517,536,424
------------
PREFERRED STOCKS - 0.4%
AEROSPACE & MILITARY
TECHNOLOGY - 0.1%
87,362,077 Empresa Brasileira de Aeronautica................... 915,438
------------
BUILDING MATERIALS &
COMPONENTS - 0.3%
5,697 Grohe (Friedrich) AG................................ 1,640,488
------------
Total Preferred Stocks
(cost $3,093,904).................................. 2,555,926
------------
CONVERTIBLE DEBENTURES - 0.2%
FINANCIAL SERVICES - 0.2%, BERMUDA TRUST
MBL International Finance, Bermuda Trust:
126,000 3.00%, 11/30/02..................................... 113,715
1,001,000 3.00%, 11/30/02..................................... 905,905
------------
1,019,620
------------
METALS - STEEL - 0.0% (B)(C)
56,500 Compania Vale do Rio Doce Navegacao SA
1.00%, 12/31/99................................... 5
------------
Total Convertible Debentures
(cost $1,161,182)................................. 1,019,625
------------
WARRANTS - 0.0% (B)
INSURANCE - 0.0% (B)
244 Munchener Ruckvers, Warrants expiring 6/03/02...... 10,606
------------
MULTI-INDUSTRY - 0.0% (B)
1,420 *One Holding Public Co. Ltd., Warrants @ 44 THB,
expiring11/20/01.................................. 0
------------
Total Warrants
(cost $0)......................................... 10,606
------------
RIGHTS - 0.0% (B)
BUSINESS & PUBLIC
SERVICES - 0.0% (B)
148,800 Mayne Nickless Ltd., Rights expiring 11/9/98
(cost $0) ........................................ 0
------------

<CAPTION>
Principal
Amount
<C> <S> <C>
SHORT-TERM INVESTMENTS - 12.3%
GOVERNMENT AGENCY BONDS & NOTES - 12.3%
$26,781,000 Federal Home Loan Mortgage Discount Notes
5.42%, 11/2/98.................................... 26,776,968
51,895,000 United States Treasury Bills
(Eff. Yield 3.60%), 1/7/99........................ 51,505,787
------------
Total Short-Term Investments
(cost $78,306,480)................................ 78,282,755
------------
REPURCHASE AGREEMENT - 4.9%
$31,000,000 Keystone Joint Repurchase Agreement, Investments in
repurchase agreements, in a joint trading account,
purchased 10/30/98, 5.50% maturing 11/2/98,
maturity value $31,014,208 (cost $31,000,000) (a)
.................................................. 31,000,000
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS -
(COST $581,314,638)......................... 99.2% 630,405,336
OTHER ASSETS AND LIABILITIES - NET........... 0.8 5,280,750
----- ------------
NET ASSETS -................................. 100.0% $635,686,086
===== ============
</TABLE>

51
<PAGE>

SCHEDULE OF INVESTMENTS(continued)
October 31, 1998

* Non-income producing securities.
(a) The repurchase agreements are fully collateralized by U.S. government
and/or agency obligations based on market prices plus accrued interest at
October 31, 1998.
(b) Less than one-tenth of one percent.
(c) Security is being fair valued in accordance with procedures established by
the Board of Trustees.

SUMMARY OF ABBREVIATIONS:

ADR American Depository Receipt

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
Forward Foreign Currency Exchange Contracts to Buy:

<TABLE>
<CAPTION>
EXCHANGE U.S. VALUE AT IN EXCHANGE UNREALIZED
DATE CONTRACTS TO RECEIVE OCTOBER 31, 1998 FOR U.S. $ DEPRECIATION
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1/8/99 7,996,978 Australian Dollar $5,007,294 $4,658,000 $349,294
========
</TABLE>

At October 31, 1998, the Fund held securities in the following countries:

<TABLE>
<CAPTION>
MARKET PERCENTAGE OF
VALUE PORTFOLIO ASSETS
------------ ----------------
<S> <C> <C>
United States+.................................... $109,282,755 17.3%
United Kingdom.................................... 92,987,251 14.8%
France............................................ 89,142,179 14.1%
Germany........................................... 64,972,059 10.3%
Japan............................................. 54,393,265 8.6%
Netherlands....................................... 49,059,428 7.8%
Switzerland....................................... 43,666,050 6.9%
Sweden............................................ 37,069,800 5.9%
Italy............................................. 29,915,952 4.7%
Australia......................................... 13,701,610 2.2%
Spain............................................. 12,295,391 2.0%
Denmark........................................... 8,542,144 1.4%
Canada............................................ 8,399,881 1.3%
Other............................................. 16,977,571 2.7%
------------ -----
$630,405,336 100.0%
============ =====
</TABLE>
+ Includes short-term investments

See Combined Notes to Financial Statements.

52
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Latin America Fund
- --------------------------------------------------------------------------------

SCHEDULE OF INVESTMENTS
October 31, 1998

<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>

COMMON STOCKS - 55.3%
AEROSPACE & MILITARY
TECHNOLOGY - 3.2%
130,257,347 Empresa Brasileira de Aeronautica.................... $ 1,364,923
-----------
BEVERAGES & TOBACCO - 4.8%
25,000 Embotelladora Andina................................. 57,825
58,496 Fomento Economico Mexicano, ADR...................... 1,524,552
236,000 Grupo Modelo SA de CV, Ser. C........................ 497,309
-----------
2,079,686
-----------
BROADCASTING & PUBLISHING - 1.3%
18,600 *Grupo Televisa SA, ADR.............................. 504,525
5,689 TV Azteca SA de CV, ADR.............................. 49,779
-----------
554,304
-----------
BUILDING MATERIALS &
COMPONENTS - 2.7%
114,300 Apasco SA de CV...................................... 418,391
125,732 Cementos Norte Pacasmayo............................. 147,510
13,344 Cemex SA de CV, Ser. A............................... 31,816
198,663 Cemex SA de CV, Ser. B............................... 554,244
-----------
1,151,961
-----------
CHEMICALS - 0.4%
5,200 Sociedad Quimica y Minera de Chile SA, ADR........... 172,900
-----------
CONSTRUCTION - 1.0%
122,700 *Corporacion GEO SA de CV, Ser. B.................... 212,431
202,500 Enrique Ferreyros.................................... 197,319
-----------
409,750
-----------
ENERGY SOURCES - 3.5%
48,110 *Perez Compancia SA, Cl. B........................... 237,742
10,288,000 *Petroleo Brasileiro SA, ("Petrobras")............... 1,293,654
-----------
1,531,396
-----------
FOOD & HOUSEHOLD PRODUCTS - 1.1%
294,000 Grupo Industrial Bimbo, Ser. A....................... 494,460
-----------
HEALTH & PERSONAL CARE - 4.0%
591,500 Kimberly Clark Corp. de Mexico SA de CV, Cl. A....... 1,732,133
-----------
MACHINERY & ENGINEERING - 0.0% (B)
76,320 Inepar SA (c)........................................ 0
-----------
MERCHANDISING - 4.8%
558,000 Cifra SA de CV, Ser. V............................... 756,292
220,000 Grupo Elektra SA de CV............................... 97,507
414,000 Organizacion Soriana, Ser. B......................... 1,228,730
-----------
2,082,529
-----------
METALS - STEEL - 0.3%
16,000 *Tubos de Acero de Mexico SA, ADR.................... 136,000
-----------
MINING - 3.4%
28,460,000 *Caemi Mineracao E Metalurgia SA..................... 608,374
55,900 Compania Vale do Rio Doce Navegacao SA............... 843,491
-----------
1,451,865
-----------
MULTI-INDUSTRY - 2.0%
15,200 Desc SA de CV, ADR................................... 286,900
167,400 Grupo Carso SA de CV, Ser. A1........................ 579,640
-----------
866,540
-----------
TELECOMMUNICATIONS - 14.7%
2,830 Telecom Argentina STET - France Telecom SA, ADR...... 91,268
40,049 Telecomunicacoes Brasileiras SA, ("Telebras") ADR.... 3,041,221
6,700,000 *Telecomunicaoes de Sao Paulo SA..................... 1,123,312
8,495 Telefonica de Argentina, ADR, Cl. B.................. 280,866
15,300 Telefonica del Peru SA, ADR.......................... 198,900
31,162 Telefonos de Mexico SA, ADR.......................... 1,645,743
-----------
6,381,310
-----------
UTILITIES - ELECTRIC, GAS &
WATER - 8.1%
13,201 Cia Paulista De Forca E Luz.......................... 908
79,350,000 Eletrobras SA........................................ 1,716,179
135,200 Transportadora de Gas del Sur SA, ("TGS") ADR........ 1,394,250
189,900 Transportadora de Gas del Sur SA, ("TGS") Cl. B...... 395,122
-----------
3,506,459
-----------
Total Common Stocks
(cost $25,292,772).................................. 23,916,216
-----------
CONVERTIBLE DEBENTURES - 0.0% (B)
MINING - 0.0% (B)
207,800 Compania Vale do Rio Doce Navegacao SA (c)
1.00%, 12/31/99
(cost $0)........................................... 17
-----------
WARRANTS - 0.0% (B)
MACHINERY & ENGINEERING - 0.0% (B)
38,160 Inepar Energia, Warrants, Ser. B (c)................. 0
38,160 Inepar Energia, Warrants, Ser. C (c)................. 0
-----------
Total Warrants
(cost $0)........................................... 0
-----------
RIGHTS - 0.0% (B)
MACHINERY & ENGINEERING - 0.0% (B)
15,657 Inepar SA
(cost $0) (c)....................................... 0
-----------
<CAPTION>
Principal
Amount
<C> <S> <C>
SHORT-TERM INVESTMENTS - 26.8%
U.S. AGENCY OBLIGATIONS - 26.8%
$11,590,000 Federal Home Loan Mortgage Discount Notes
5.42%, 11/2/98
(cost $11,588,255).................................. 11,588,255
-----------
</TABLE>

53
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Latin America Fund
- --------------------------------------------------------------------------------

SCHEDULE OF INVESTMENTS(continued)
October 31, 1998

<TABLE>
<CAPTION>
Principal
Amount Value
<C> <S> <C>
REPURCHASE AGREEMENT - 4.8%
$ 2,100,000 Keystone Joint Repurchase Agreement, Investments in
repurchase agreements, in a joint trading account,
purchased 10/30/98, 5.50% maturing 11/2/98,
maturity value $2,100,963 (cost $2,100,000) (a)... $ 2,100,000
-----------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS -
(COST $38,981,027)........................... 86.9% 37,604,488
OTHER ASSETS AND LIABILITIES - NET............ 13.1 5,677,541
----- -----------
NET ASSETS -.................................. 100.0% $43,282,029
===== ===========
</TABLE>
* Non-Income Producing Securities.
(a) The repurchase agreements are fully collateralized by U.S. government
and/or agency obligations based on market prices plus accrued interest at
October 30, 1998.
(b) Less than one-tenth of one percent.
(c) Security is being fair valued in accordance with procedures established by
the Board of Trustees.

SUMMARY OF ABBREVIATIONS:
ADR American Depository Receipt

At October 31, 1998, the Fund held securities in the following countries:

<TABLE>
<CAPTION>
MARKET PERCENTAGE OF
VALUE PORTFOLIO ASSETS
- -----------------------------------------------------------------------------
<S> <C> <C>
United States+................................. $13,688,255 36.4%
Mexico......................................... 10,750,451 28.6%
Brazil......................................... 9,992,079 26.6%
Argentina...................................... 2,399,248 6.4%
Peru........................................... 543,730 1.4%
Chile.......................................... 230,725 0.6%
----------- ------
$37,604,488 100.0%
=========== ======
</TABLE>
+ Includes short-term investments

See Combined Notes to Financial Statements.

54
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Precious Metals Fund
- --------------------------------------------------------------------------------

SCHEDULE OF INVESTMENTS
October 31, 1998

<TABLE>
<CAPTION>
Shares Value
<C> <S> <C>

COMMON STOCKS - 96.9%
GOLD MINING - 66.4%
115,819 Angloglold Ltd. ..................................... $ 5,896,992
111,995 Anglogold Ltd., ADR.................................. 2,799,875
559,520 Ashanti Goldfields Ltd., GDR......................... 4,790,890
2,774,000 *Avgold Ltd. ........................................ 1,635,409
311,000 Cambior, Inc. ....................................... 1,541,899
1,000,000 Delta Gold NL........................................ 1,638,679
416,700 Durban Roodepoort Deep Ltd. ......................... 1,265,547
760,200 Eldorado Gold Corp. ................................. 246,338
451,900 Euro Nevada Mining Ltd. ............................. 7,058,192
474,400 Franco Nevada Mining Ltd. ........................... 9,146,727
204,200 Getchell Gold Corp. ................................. 3,573,500
150,000 *Goldcorp, Inc. ..................................... 748,542
100,000 Goldcorp, Inc., Cl. A................................ 487,500
194,900 Goldfields Ltd. ..................................... 1,375,355
262,000 *Greenstone Resources Ltd. .......................... 375,256
366,000 Homestake Mining Co. ................................ 4,346,250
910,000 *Kinross Gold Corp. ................................. 2,331,875
100,000 Kinross Gold Corp. .................................. 255,995
300,000 Lihir Gold Ltd. ..................................... 416,550
596,500 *Meridian Gold, Inc. ................................ 3,094,344
175,000 Newmont Mining Corp. ................................ 3,718,750
2,284,824 Normandy Mining Ltd. ................................ 2,043,532
337,100 *Orvana Minerals Corp. .............................. 170,407
3,462,400 *Perilya Mines NL.................................... 649,667
114,500 Philex Gold, Inc. ................................... 28,940
350,000 Placer Dome, Inc. ................................... 5,546,014
4,000 Rio Narcea Gold Mine, Inc. .......................... 6,740
1,020,629 Ross Mining NL....................................... 663,887
6,000,000 Santa Cruz Gold, Inc. ............................... 252,754
499,600 Sons of Gwalia Ltd. ................................. 1,560,187
1,157,500 *TVX Gold, Inc. ..................................... 2,107,955
1,000,000 Viceroy Resource Corp. .............................. 2,073,882
288,585 *Western Areas Gold Mining Ltd., ADR................. 951,667
------------
72,800,097
------------
METALS & MINING - 30.5%
100,100 *Aber Resources Ltd. ................................ 561,157
1,899,200 *Acacia Resources Ltd. .............................. 3,029,029
157,800 *Anglo-American Platinum Holdings.................... 2,396,248
1,640,000 Ariel Resources Ltd. ................................ 138,172
150,000 Avmin Ltd., ADR...................................... 579,000
90,000 Barrick Gold Corp. .................................. 1,923,750
188,700 Barrick Gold Corp. .................................. 4,011,251
1,999,000 *Canyon Resources Corp. ............................. 999,500
200,000 Dayton Mining Corp. ................................. 100,000
2,091,400 Gencor Ltd. ......................................... 3,642,903
800,000 Geomaque Exploration Ltd. ........................... 798,445
900,200 *Harmony Gold Mining Ltd. ........................... 4,543,216
67,000 *Harmony Gold Mining Ltd., ADR....................... 337,392
175,000 Impala Platinum Holdings Ltd. ....................... 1,910,228
100,000 Pioneer Group, Inc. ................................. 1,428,125
300,000 *Repadre Capital Corp. .............................. 486,066
195,300 *SouthernEra Resources Ltd. ......................... 1,082,187
170,900 *Stillwater Mining Co. .............................. 5,532,887
------------
33,499,556
------------
Total Common Stocks
(cost $144,938,701)................................. 106,299,653
------------
WARRANTS - 0.1%
METALS & MINING - 0.1%
227,500 Atlas Corp., Expire 12/15/99......................... 1,137
75,000 Canyon Resources Corp., Expire 3/25/99 (b)........... 0
162,500 Geomaque Exploration Ltd., Expire 3/18/99............ 5,266
429,000 *Vengold, Inc., Ser. B, Expire 6/13/08............... 61,166
------------
67,569
------------
Total Warrants
(cost $304,340)..................................... 67,569
------------
<CAPTION>
Principal
Amount
<C> <S> <C>

REPURCHASE AGREEMENT - 2.2%
$2,471,000 Keystone Joint Repurchase Agreement, Investments in
repurchase agreements, in a joint trading account,
5.50%, dated 10/30/98, maturing 11/2/98, maturity
value $2,472,133 (cost $2,471,000) (a).............. 2,471,000
------------
</TABLE>
<TABLE>
<C> <S> <C> <C>
TOTAL INVESTMENTS -(COST $147,714,041)........ 99.2% 108,838,222
OTHER ASSETS AND LIABILITIES - NET............ 0.8 914,999
----- ------------
NET ASSETS -.................................. 100.0% $109,753,221
===== ============
</TABLE>

55
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
Precious Metals Fund
- --------------------------------------------------------------------------------

SCHEDULE OF INVESTMENTS(continued)
October 31, 1998

* Non-income producing securities.
(a) The repurchase agreements are collateralized by U.S. government
and/or agency obligations based on market prices plus accrued inter-
est at October 31, 1998.
(b) Security is being fair valued in accordance with procedures estab-
lished by the Board of Trustees.

SUMMARY OF ABBREVIATIONS
ADR American Depository Receipt
GDR Global Depository Receipt

At October 31, 1998, the Fund held securities in the following countries:

<TABLE>
<CAPTION>
MARKET PERCENTAGE OF
VALUE PORTFOLIO ASSETS
- --------------------------------------------------------------------------------
<S> <C> <C>
Australia......................................... $ 9,584,980 8.8%
Canada............................................ 48,214,320 44.3%
Papua New Guinea.................................. 416,550 0.4%
South Africa...................................... 32,124,722 29.5%
United States..................................... 18,497,650 17.0%
------------ -----
$108,838,222 100.0%
============ =====
</TABLE>

See Combined Notes to Financial Statements.

56
<PAGE>

- --------------------------------------------------------------------------------
EVERGREEN
International and Global Growth Funds
- --------------------------------------------------------------------------------

STATEMENTS OF ASSETS AND LIABILITIES
October 31, 1998

<TABLE>
<CAPTION>
EMERGING GLOBAL GLOBAL INTERNATIONAL LATIN PRECIOUS
MARKETS LEADERS OPPORTUNITIES GROWTH AMERICA METALS
GROWTH FUND FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Identified cost of
securities............. $ 57,450,289 $297,558,681 $160,681,416 $550,314,638 $ 36,881,027 $145,243,041
Repurchase agreements,
at amortized cost...... -- -- 28,167,000 31,000,000 2,100,000 2,471,000
- ---------------------------------------------------------------------------------------------------------------
Total identified cost
of investments......... 57,450,289 297,558,681 188,848,416 581,314,638 38,981,027 147,714,041
Net unrealized gains
or losses............ 1,084,906 43,290,753 20,517,567 49,090,698 (1,376,539) (38,875,819)
- ---------------------------------------------------------------------------------------------------------------
Investments, at value... 58,535,195 340,849,434 209,365,983 630,405,336 37,604,488 108,838,222
Investment in wholly-
owned unconsolidated
foreign subsidiary, at
value.................. 0 0 0 0 0 844,524
Foreign currency at
value (identified
cost - $36,873,
$2,162,037, $292,446,
$32,656, $594,758 and
$352,937,
respectively).......... 38,807 2,163,164 304,917 35,168 594,452 378,135
Cash.................... 11,011 34,283 252 2,532,911 6,184 1,329
Receivable for
investments sold....... 6,260,449 2,844,355 4,975,522 24,098,966 5,819,754 509,730
Receivable for Fund
shares sold............ 225,010 16,901,726 694,271 13,603,755 670,781 182,041
Dividends, interest and
tax reclaims
receivable............. 87,169 587,614 308,678 1,585,735 227,620 31,684
Prepaid expenses and
other assets........... 26,807 46,335 63,298 267,596 32,882 71,643
- ---------------------------------------------------------------------------------------------------------------
Total assets.......... 65,184,448 363,426,911 215,712,921 672,529,467 44,956,161 110,857,308
- ---------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for investments
purchased.............. 6,323,210 7,018,524 7,775,281 26,021,835 1,432,954 482,542
Payable for Fund shares
repurchased............ 33,900 1,005,476 634,884 768,702 132,460 462,956
Payable for closed
forward foreign
currency exchange
contracts.............. 0 0 2,696,949 8,732,919 0 0
Unrealized depreciation
on open forward
foreign currency
exchange contracts..... 0 0 10,419 349,294 0 0
Advisory fee payable.... 73,171 251,745 145,264 360,565 26,139 71,202
Distribution fee
payable................ 2,521 69,714 100,133 56,109 15,167 26,426
Due to related
parties................ 1,308 7,685 34,463 10,193 511 1,201
Foreign taxes
withheld............... 0 22,080 10,148 80,078 9,236 0
Accrued expenses and
other liabilities...... 56,347 126,208 139,671 463,686 57,665 59,760
- ---------------------------------------------------------------------------------------------------------------
Total liabilities..... 6,490,457 8,501,432 11,547,212 36,843,381 1,674,132 1,104,087
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS.............. $ 58,693,991 $354,925,479 $204,165,709 $635,686,086 $ 43,282,029 $109,753,221
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS REPRESENTED
BY
Paid-in capital......... $ 73,739,943 $312,905,871 $172,821,544 $628,358,875 $ 67,954,921 $213,194,136
Undistributed net
investment income
(loss)................. 146,019 (12,989) 2,263,614 8,260,101 (3,551) (3,368)
Accumulated
undistributed net
realized gains or
losses on securities,
futures contracts and
foreign currency
related transactions... (16,274,698) (1,276,245) 8,545,680 (49,701,832) (23,284,235) (64,587,069)
Net unrealized gains or
losses on securities,
futures contracts and
foreign currency
related transactions... 1,082,727 43,308,842 20,534,871 48,768,942 (1,385,106) (38,850,478)
- ---------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS...... $ 58,693,991 $354,925,479 $204,165,709 $635,686,086 $ 43,282,029 $109,753,221
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS CONSISTS OF
Class A................. $ 6,194,829 $142,621,734 $ 58,944,078 $128,657,032 $ 6,483,371 $ 83,430,641
Class B................. 2,969,872 166,556,251 122,147,034 75,466,589 32,045,702 25,765,294
Class C................. 576,668 3,874,645 23,043,098 3,374,692 4,724,789 557,286
Class Y................. 48,952,622 41,872,849 31,499 428,187,773 28,167 --
- ---------------------------------------------------------------------------------------------------------------
$ 58,693,991 $354,925,479 $204,165,709 $635,686,086 $ 43,282,029 $109,753,221
- ---------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING
Class A................. 784,471 9,539,419 3,060,778 17,227,112 857,070 7,164,752
Class B................. 386,238 11,333,742 6,640,958 10,155,423 4,366,801 2,224,888
Class C................. 75,074 264,065 1,250,067 454,293 645,059 48,140
Class Y................. 6,146,436 2,782,491 1,609 57,472,437 3,714 --
- ---------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER
SHARE
Class A................. $ 7.90 $ 14.95 $ 19.26 $ 7.47 $ 7.56 $ 11.64
- ---------------------------------------------------------------------------------------------------------------
Class A -- Offering
price (based on sales
charge
of 4.75%).............. $ 8.29 $ 15.70 $ 20.22 $ 7.84 $ 7.94 $ 12.22
- ---------------------------------------------------------------------------------------------------------------
Class B................. $ 7.69 $ 14.70 $ 18.39 $ 7.43 $ 7.34 $ 11.58
- ---------------------------------------------------------------------------------------------------------------
Class C................. $ 7.68 $ 14.67 $ 18.43 $ 7.43 $ 7.32 $ 11.58
- ---------------------------------------------------------------------------------------------------------------
Class Y................. $ 7.96 $ 15.05 $ 19.58 $ 7.45 $ 7.58 --
- ---------------------------------------------------------------------------------------------------------------
</TABLE>

See Combined Notes to Financial Statements.

57
<PAGE>

STATEMENTS OF OPERATIONS
Year Ended October 31, 1998

See Combined Notes to Financial Statements.

58
<PAGE>

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended October 31, 1998

See Combined Notes to Financial Statements.

59
<PAGE>

STATEMENTS OF CHANGES IN NET ASSETS
Year Ended October 31, 1997

<TABLE>
<CAPTION>
EMERGING GLOBAL GLOBAL INTERNATIONAL LATIN PRECIOUS
MARKETS LEADERS OPPORTUNITIES GROWTH AMERICA METALS
GROWTH FUND FUND FUND* FUND FUND FUND**
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS
Net investment income... $ 67,828 $ (699,681) $ (648,601) $ (786,796) $ (483,675) $ (1,019,679)
Equity in earnings of
wholly-owned
unconsolidated foreign
subsidiary............. 0 0 0 0 0 13,054
Net realized gains or
losses on securities
and foreign currency
related transactions... 3,103,689 1,604,061 8,871,051 33,079,318 36,087,300 3,388,158
Net change in unrealized
gains or losses on
securities and foreign
currency related
transactions........... (419,272) 15,243,876 (29,437,805) (8,385,742) (17,271,713) (61,446,526)
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from
operations............ 2,752,245 16,148,256 (21,215,355) 23,906,780 18,331,912 (59,064,993)
- ------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS
From net investment
income
Class A................ 0 0 0 0 (91,845) 0
Class B................ 0 0 0 (1,828,737) (569,802) 0
Class C................ 0 0 0 0 (62,177) 0
From net realized gains
Class A................ 0 (15,146) 0 0 0 0
Class B................ 0 (48,643) 0 (2,926,339) 0 0
Class C................ 0 (735) 0 0 0 0
Class Y................ 0 (19,126) 0 0 0 0
- ------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders.......... 0 (83,650) 0 (4,755,076) (723,824) 0
- ------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE
TRANSACTIONS
Proceeds from shares
sold................... 44,864,733 135,313,747 5,938,720 159,178,048 35,265,301 83,990,548
Payment for shares
redeemed............... (11,964,860) (14,708,624) (28,290,639) (178,656,491) (52,499,496) (103,860,464)
Net asset value of
shares issued in
reinvestment of
distributions.......... 0 72,520 0 4,222,295 639,781 0
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
resulting from capital
share transactions.... 32,899,873 120,677,643 (22,351,919) (15,256,148) (16,594,414) (19,869,916)
- ------------------------------------------------------------------------------------------------------------------
Total increase
(decrease) in net
assets............... 35,652,118 136,742,249 (43,567,274) 3,895,556 1,013,674 (78,934,909)
NET ASSETS
Beginning of period..... 33,568,806 74,083,184 401,937,820 147,910,554 98,839,161 190,107,611
- ------------------------------------------------------------------------------------------------------------------
END OF PERIOD........... $ 69,220,924 $210,825,433 $358,370,546 $ 151,806,110 $ 99,852,835 $ 111,172,702
- ------------------------------------------------------------------------------------------------------------------
Undistributed net
investment income...... $ 66,746 $ (9,878) $ 540,406 $ 6,805,770 $ (2,760) $ (2,757)
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* The Fund changed its fiscal year end to October 31. The Statement of Changes
is for the one-month period ended October 31, 1997.
** The Fund changed its fiscal year end to October 31. The Statement of Changes
is for the eight-month period ended October 31, 1997.

See Combined Notes to Financial Statements.

60
<PAGE>

STATEMENTS OF CHANGES IN NET ASSETS
Prior Periods

<TABLE>
<CAPTION>
GLOBAL PRECIOUS
OPPORTUNITIES METALS
FUND** FUND *
- ------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment loss............................ $ (6,655,024) $ (2,063,632)
Equity in earnings of wholly-owned
unconsolidated foreign subsidiary............. 0 69,764
Net realized gain on securities and foreign
currency related transactions................. 26,795,363 14,024,717
Net change in unrealized losses on securities
and foreign currency related transactions..... (6,946,269) (17,875,249)
- ------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations.................... 13,194,070 (5,844,400)
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net realized gains
Class A....................................... (11,550,719) 0
Class B....................................... (19,127,005) (7,301,560)
Class C....................................... (6,057,525) 0
- ------------------------------------------------------------------------------
Total distributions to shareholders........... (36,735,249) (7,301,560)
- ------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold...................... 72,496,510 618,026,217
Payment for shares redeemed.................... (437,692,552) (638,015,009)
Net asset value of shares issued in
reinvestment of distributions................. 29,860,344 5,971,990
- ------------------------------------------------------------------------------
Net decrease in net assets resulting from
capital share transactions................... (335,335,698) (14,016,802)
- ------------------------------------------------------------------------------
Total increase (decrease) in net assets...... (358,876,877) (27,162,762)
NET ASSETS
Beginning of period............................ 760,814,697 217,270,373
- ------------------------------------------------------------------------------
END OF PERIOD.................................. $ 401,937,820 $ 190,107,611
- ------------------------------------------------------------------------------
Undistributed net investment income (loss)..... $ (966,557) $ 4,722,048
- ------------------------------------------------------------------------------
</TABLE>
* For the year ended February 28, 1997.
** For the year ended September 30, 1997.

See Combined Notes to Financial Statements.

61
<PAGE>

COMBINED NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION

The Evergreen International & Global Growth Funds consist of the Evergreen
Emerging Markets Growth Fund ("Emerging Markets Fund"), Evergreen Global Lead-
ers Fund ("Global Leaders Fund"), Evergreen Global Opportunities Fund ("Global
Opportunities Fund"), Evergreen International Growth Fund (formerly, Keystone
International Fund, Inc.) ("International Growth Fund"), Evergreen Latin Amer-
ica Fund ("Latin America Fund") and Evergreen Precious Metals Fund (formerly,
Keystone Precious Metals Holdings, Inc.) ("Precious Metals Fund") (collective-
ly, the "Funds") each of which are registered under the Investment Company Act
of 1940, as amended (the "1940 Act"), as diversified, open-end management in-
vestment companies. Each Fund is a series of the Evergreen International Trust,
a Delaware business trust organized on September 17, 1997.

The Funds offer Class A, Class B, Class C and Class Y Shares with the exception
of Precious Metals Fund which does 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 distribu-
tion 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 advi-
sory clients of First Union Corporation ("First Union") and its affiliates and
certain institutional investors or Class Y shareholders of record of certain
other funds managed by First Union and its affiliates as of December 30, 1994.

Effective January 9, 1998, the International Growth Fund and Precious Metals
Fund added two classes of shares designated as Class A and Class C and desig-
nated the existing class of shares as Class B. Shareholders of these Funds who,
on January 16, 1998, held Class B shares purchased before January 1, 1995 and
certain other non-commissionable Class B shares had such shares converted to
Class A shares having an aggregate value equal to that of the shareholder's
Class B shares prior to the conversion.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently fol-
lowed by the Funds in the preparation of their financial statements. The poli-
cies are in conformity with generally accepted accounting principles, which re-
quire management to make estimates and assumptions that affect amounts reported
herein. Actual results could differ from these estimates.

A. VALUATION OF SECURITIES
The Funds value securities traded on an established securities exchange or in-
cluded on the NASDAQ National Market System ("NMS") at the last reported sales
price on the exchange where primarily traded. The Funds value securities traded
on an exchange or NMS for which there has been no sale and other securities
traded in the over-the-counter market at the mean between the last reported bid
and asked price. U.S. government obligations held by the Funds are valued at
the mean between the over-the-counter bid and asked prices. Securities for
which valuations are not available from an independent pricing service, includ-
ing restricted securities, are valued at fair value as determined in good faith
according to procedures established by the Board of Trustees. Short-term in-
vestments 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 securi-
ties pledged falls below the carrying value of the repurchase agreement, in-
cluding 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.

62
<PAGE>

COMBINED NOTES TO FINANCIAL STATEMENTS (continued)

Pursuant to an exemptive order issued by the Securities and Exchange Commis-
sion, certain Funds managed by Evergreen Investment Management Company ("EIM-
CO") (formerly, Keystone Investment Management Company), may transfer
uninvested cash balances into a joint trading account. These balances are in-
vested in one or more repurchase agreements that are fully collateralized by
U.S. Treasury and/or federal agency obligations.

C. 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 agree-
ment, 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 U.S. dollars. Foreign cur-
rency amounts are translated into U.S. dollars as follows: market value of in-
vestments, other assets and liabilities at the daily rate of exchange; pur-
chases 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 gain or loss on securities and foreign cur-
rency related transactions. Net realized foreign currency gains or losses re-
sulting from changes in exchange rates include foreign currency gains and
losses between trade date and settlement date on securities transactions, for-
eign currency related transactions and the difference between the amounts of
interest and dividends recorded on the books of the Fund and the amounts that
are actually received and are included in realized gain or loss on foreign cur-
rency related transactions. The portion of foreign currency gains or losses re-
lated to fluctuations in exchange rates between the initial purchase trade date
and subsequent sale trade date is included in realized gains or losses on secu-
rities.

E. FUTURES CONTRACTS
In order to gain exposure to or protect against changes in security values, the
Funds may buy and sell futures contracts.

The initial margin deposited with a broker when entering into a futures trans-
action is subsequently adjusted by daily payments or receipts as the value of
the contract changes. Such changes are recorded as unrealized gains or losses.
Realized gains or losses are recognized on closing the contract. Risks of en-
tering into futures contracts include (i) the possibility of an illiquid market
for the contract, (ii) the possibility that a change in the value of the con-
tract may not correlate with changes in the value of the underlying instrument
or index, and (iii) the credit risk that the other party will not fulfill their
obligations under the contract. Futures contracts also involve elements of mar-
ket risk in excess of the amount reflected in the statement of assets and lia-
bilities.

F. FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
The Funds may enter into forward foreign currency exchange contracts ("forward
contracts") to settle portfolio purchases and sales of securities denominated
in a foreign currency and to hedge certain foreign currency assets or liabili-
ties. Forward contracts are recorded at the forward rate and marked-to-market
daily. Realized gains and losses arising from such transactions are included in
net realized gain (loss) on foreign currency related transactions. The Fund
bears the risk of an unfavorable change in the foreign currency exchange rate
underlying the forward contract and is subject to the credit risk that the
other party will not fulfill their obligations under the contract. Forward con-
tracts involve elements of market risk in excess of the amount reflected in the
statement of assets and liabilities.

G. 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. Dividend

63
<PAGE>

COMBINED NOTES TO FINANCIAL STATEMENTS (continued)

income is recorded on the ex-dividend date, or in the case of some foreign se-
curities, 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.

H. FEDERAL TAXES
The Funds have qualified and intend to continue to qualify as regulated invest-
ment companies under the Internal Revenue Code of 1986, as amended (the
"Code"). As such, the Funds will not incur any federal income tax liability to
the extent they 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 re-
alized capital gains can be offset by capital loss carryforwards, it is each
Fund's policy not to distribute such gains.

I. DISTRIBUTIONS
Distributions from net investment income and net realized capital gains, if
any, for the Funds are declared and paid at least annually. Distributions to
shareholders are recorded at the close of business on the ex-dividend date.
Certain distributions paid during previous years have been reclassified to con-
form with current year presentation.

Income and capital gains distributions to shareholders are determined in accor-
dance with income tax regulations, which may differ from generally accepted ac-
counting principles. 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 operat-
ing losses and foreign currency gains or losses.

J. CLASS ALLOCATIONS
Income, expenses (other than class specific expenses) and realized and
unrealized gains and losses are prorated among the classes based on the rela-
tive net assets of each class. Currently, class specific expenses are limited
to expenses incurred under the Distribution Plans for each class.

K. ORGANIZATION EXPENSES
Organization expenses are amortized to operations over a five-year period on a
straight-line basis. In the event any of the initial shares of the 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.

3. ACQUISITION INFORMATION

Effective at the close of business on February 27, 1998, Global Leaders Fund
acquired the net assets of Blanchard Global Growth Fund, an open-end management
investment company registered under the 1940 Act in an exchange of shares. The
net assets were exchanged through a non-taxable exchange for 3,648,723 Class A
shares of Global Leaders Fund. The acquired net assets consisted primarily of
portfolio securities with unrealized appreciation of $2,310,198. The aggregate
net assets of Blanchard Global Growth Fund and Global Leaders Fund immediately
before the acquisition were $55,765,847 and $244,596,473, respectively. The ag-
gregate net assets of Global Leaders Fund after the acquisition were
$300,362,320.

Effective at the close of business on February 27, 1998, Precious Metals Fund
acquired substantially all of the net assets of Blanchard Precious Metals Fund,
an open-end management investment company registered under the 1940 Act in an
exchange of shares. The net assets were exchanged through a non-taxable ex-
change for 2,927,140 Class A shares of Precious Metals Fund. The acquired net
assets consisted primarily of portfolio securities with unrealized depreciation
of $38,301,971. The aggregate net assets of Blanchard Precious Metals Fund and
Precious Metals Fund immediately before the acquisition were $39,424,759 and
$104,683,444, respectively. The aggregate net assets of Precious Metals Fund
after the acquisition were $144,108,204.

64
<PAGE>

COMBINED NOTES TO FINANCIAL STATEMENTS (continued)

Effective at the close of business on July 27, 1998, International Growth Fund
acquired substantially all of the net assets of CoreFund Inc. International
Growth Fund, an open-end management investment company registered under the
1940 Act in an exchange of shares. The net assets were exchanged through a non-
taxable exchange for 303,491 Class A Shares, 7,427 Class B Shares, and
20,732,817 of Class Y Shares of International Growth Fund. The acquired net as-
sets consisted primarily of portfolio securities with unrealized appreciation
of $38,264,074. The aggregate net assets of CoreFund Inc. International Growth
Fund and International Growth Fund immediately before the acquisition were
$182,359,660 and $241,341,003, respectively. The aggregate net assets of Inter-
national Growth Fund after the acquisition were $423,700,663.

Effective at the close of business on October 28, 1998, International Growth
Fund acquired substantially all of the net assets of Evergreen International
Equity Fund, an open-end management investment company registered under the
1940 Act in an exchange of shares. The net assets were exchanged through a non-
taxable transaction for 2,164,961 Class A Shares, 2,500,823 Class B Shares,
102,170 Class C Shares and 25,539,992 of Class Y Shares of International Growth
Fund. The acquired net assets consisted primarily of portfolio securities with
unrealized depreciation of $11,505,330. The aggregate net assets of Evergreen
International Equity Fund and International Growth Fund immediately before the
acquisition were $222,394,077 and $396,945,119, respectively. The aggregate net
assets of International Growth Fund after the acquisition were $619,339,196.

4. INVESTMENT IN FOREIGN SUBSIDIARY

Precious Metals (Bermuda) Ltd., Precious Metal Fund's wholly owned foreign sub-
sidiary, was acquired in May 1975 and has as its primary objective the acquisi-
tion of precious metals. The Fund accounts for its investments in the subsidi-
ary under the equity method of accounting. At October 31, 1998, the fair value
of the Fund's investment in the foreign subsidiary was determined as follows:

<TABLE>
<S> <C>
Cash and cash equivalents................ $867,375
Accrued expenses......................... (22,851)
--------
$844,524
========
</TABLE>

During the year ended October 31, 1998, the foreign subsidiary had no purchases
of precious metals or sales of precious metals. Investment activities of the
foreign subsidiary resulted in gross investment income, general and administra-
tive expenses, net investment income of $41,663, $17,484 and $24,179, respec-
tively. Management fees paid or accrued to EIMCO totaled $6,217 for the year
ended October 31, 1998.

65
<PAGE>

COMBINED NOTES TO FINANCIAL STATEMENTS (continued)

5. CAPITAL SHARE TRANSACTIONS

The Funds have an unlimited number of shares of beneficial interest with a par
value of $.001 authorized. Shares of beneficial interest of the Funds are cur-
rently divided into Class A, Class B, Class C and/or Class Y. Transactions in
shares of the Funds were as follows:

Emerging Markets Fund

<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1998 October 31, 1997
------------------------ ----------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold................. 1,539,603 $ 14,993,843 373,278 $ 3,938,592
Shares redeemed............. (1,041,101) (10,071,395) (289,832) (3,032,756)
Shares issued on
reinvestment of
distributions.............. 8,077 78,672 0 0
- ------------------------------------------------------------------------------
Net increase................ 506,579 5,001,120 83,446 905,836
- ------------------------------------------------------------------------------
CLASS B
Shares sold................. 150,671 1,447,684 164,864 1,717,956
Shares redeemed............. (182,867) (1,703,438) (100,251) (1,000,964)
Shares issued on
reinvestment of
distributions.............. 10,499 100,681 0 0
- ------------------------------------------------------------------------------
Net increase (decrease)..... (21,697) (155,073) 64,613 716,992
- ------------------------------------------------------------------------------
CLASS C
Shares sold................. 65,455 599,325 128,876 1,301,468
Shares redeemed............. (124,024) (1,217,706) (8,773) (93,284)
Shares issued on
reinvestment of
distributions.............. 3,451 33,092 0 0
- ------------------------------------------------------------------------------
Net increase (decrease)..... (55,118) (585,289) 120,103 1,208,184
- ------------------------------------------------------------------------------
CLASS Y
Shares sold................. 1,333,842 12,710,847 3,444,422 37,906,717
Shares redeemed............. (1,382,744) (12,835,771) (770,870) (7,837,856)
Shares issued on
reinvestment of
distributions.............. 108,476 1,060,894 0 0
- ------------------------------------------------------------------------------
Net increase................ 59,574 935,970 2,673,552 30,068,861
- ------------------------------------------------------------------------------
Net increase in net assets
resulting from capital
share transactions......... $ 5,196,728 $32,899,873
- ------------------------------------------------------------------------------
</TABLE>

Global Leaders Fund

<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1998 October 31, 1997
-------------------------- -----------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold.............. 30,930,256 $ 447,933,681 2,037,338 $ 26,561,220
Shares redeemed.......... (27,875,118) (405,306,465) (304,314) (4,039,813)
Shares issued on
reinvestment of
distributions........... 11,768 163,222 1,245 15,030
Shares issued in
acquisition of Blanchard
Global Growth Fund...... 3,648,723 55,765,847
- -------------------------------------------------------------------------------
Net increase............. 6,715,629 98,556,285 1,734,269 22,536,437
- -------------------------------------------------------------------------------
CLASS B
Shares sold.............. 3,186,919 47,469,163 6,953,600 90,590,909
Shares redeemed.......... (1,832,008) (26,758,571) (555,510) (7,324,691)
Shares issued on
reinvestment of
distributions........... 41,954 575,190 4,015 48,220
- -------------------------------------------------------------------------------
Net increase............. 1,396,865 21,285,782 6,402,105 83,314,438
- -------------------------------------------------------------------------------
CLASS C
Shares sold.............. 181,393 2,719,744 173,061 2,249,794
Shares redeemed.......... (94,685) (1,374,676) (43,171) (592,995)
Shares issued on
reinvestment of
distributions........... 721 9,873 52 629
- -------------------------------------------------------------------------------
Net increase............. 87,429 1,354,941 129,942 1,657,428
- -------------------------------------------------------------------------------
CLASS Y
Shares sold.............. 1,226,789 18,343,144 1,227,611 15,911,824
Shares redeemed.......... (1,034,996) (15,251,611) (203,730) (2,751,116)
Shares issued on
reinvestment of
distributions........... 4,034 56,109 715 8,632
- -------------------------------------------------------------------------------
Net increase............. 195,827 3,147,642 1,024,596 13,169,340
- -------------------------------------------------------------------------------
Net increase in net
assets resulting from
capital share
transactions............ $ 124,344,650 $120,677,643
- -------------------------------------------------------------------------------
</TABLE>

66
<PAGE>

COMBINED NOTES TO FINANCIAL STATEMENTS (continued)

Global Opportunities Fund

<TABLE>
<CAPTION>
Year Ended Period Ended Year Ended
October 31, 1998 October 31, 1997* September 30, 1997
------------------------- ---------------------- -------------------------
Shares Amount Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............. 4,344,269 $ 98,654,176 205,158 $ 5,151,881 1,724,686 $ 40,645,838
Shares redeemed......... (5,674,012) (128,741,779) (595,578) (14,880,208) (7,656,939) (176,796,539)
Shares issued on
reinvestment of
distributions.......... 224,106 4,890,006 0 0 293,025 6,669,240
- ------------------------------------------------------------------------------------------------------
Net decrease............ (1,105,637) (25,197,597) (390,420) (9,728,327) (5,639,228) (129,481,461)
- ------------------------------------------------------------------------------------------------------
CLASS B
Shares sold............. 310,625 6,886,751 22,401 532,211 1,025,563 23,070,741
Shares redeemed......... (3,830,040) (82,094,577) (424,559) (10,089,631) (8,009,248) (177,499,072)
Shares issued on
reinvestment of
distributions.......... 620,042 13,008,494 0 0 798,355 17,651,626
- ------------------------------------------------------------------------------------------------------
Net decrease............ (2,899,373) (62,199,332) (402,158) (9,557,420) (6,185,330) (136,776,705)
- ------------------------------------------------------------------------------------------------------
CLASS C
Shares sold............. 102,028 2,319,959 10,542 254,628 390,436 8,779,908
Shares redeemed......... (908,274) (19,515,716) (137,741) (3,320,800) (3,780,382) (83,396,941)
Shares issued on
reinvestment of
distributions.......... 126,413 2,657,194 0 0 250,089 5,539,478
- ------------------------------------------------------------------------------------------------------
Net decrease............ (679,833) (14,538,563) (127,199) (3,066,172) (3,139,857) (69,077,555)
- ------------------------------------------------------------------------------------------------------
CLASS Y
Shares sold............. 301,547 6,065,232 0 0 1 23
Shares redeemed......... (299,939) (6,075,384) 0 0 0 0
Shares issued on
reinvestment of
distributions.......... 0 0 0 0 0 0
- ------------------------------------------------------------------------------------------------------
Net increase
(decrease)............. 1,608 (10,152) 0 0 1 23
- ------------------------------------------------------------------------------------------------------
Net decrease in net
assets resulting from
capital share
transactions........... $(101,945,644) $(22,351,919) $(335,335,698)
- ------------------------------------------------------------------------------------------------------
</TABLE>
* For the one month ended October 31, 1997. The Fund changed its fiscal year
end from September 30 to October 31, effective October 31, 1997.

International Growth Fund

<TABLE>
<CAPTION>
Year Ended* Year Ended
October 31, 1998 October 31, 1997
------------------------- --------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold............. 12,077,791 $ 92,358,078 0 0
Automatic conversion of
Class B shares to Class
A shares............... 13,877,478 95,438,329 0 0
Shares redeemed......... (11,196,609) (85,043,609) 0 0
Shares issued in
acquisition of
Evergreen International
Equity Fund............ 2,164,961 15,927,622 0 0
Shares issued in
acquisition of CoreFund
International Growth
Fund................... 303,491 2,627,478 0 0
- --------------------------------------------------------------------------------
Net increase............ 17,227,112 121,307,898 0 0
- --------------------------------------------------------------------------------
CLASS B
Shares sold............. 6,504,930 50,772,491 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......... (6,669,302) (50,597,968) (21,092,806) (178,656,491)
Shares issued on
reinvestment of
distributions.......... 4,141,410 28,410,070 463,479 4,222,295
Shares issued in
acquisition of
Evergreen International
Equity Fund............ 2,500,823 18,307,019 0 0
Shares issued in
acquisition of CoreFund
International Growth
Fund................... 7,427 64,064 0 0
- --------------------------------------------------------------------------------
Net decrease............ (7,392,190) (48,482,653) (1,698,999) (15,256,148)
- --------------------------------------------------------------------------------
CLASS C
Shares sold............. 946,471 7,475,561 0 0
Shares redeemed......... (594,348) (4,518,373) 0 0
Shares issued in
acquisition of
Evergreen International
Equity Fund............ 102,170 747,667 0 0
- --------------------------------------------------------------------------------
Net increase............ 454,293 3,704,855 0 0
- --------------------------------------------------------------------------------
CLASS Y
Shares sold............. 14,864,337 121,402,695 0 0
Shares redeemed......... (3,664,709) (27,667,505) 0 0
Shares issued in
acquisition of
Evergreen International
Equity Fund............ 25,539,992 187,411,771 0 0
Shares issued in
acquisition of CoreFund
International Growth
Fund................... 20,732,817 179,668,118 0 0
- --------------------------------------------------------------------------------
Net increase............ 57,472,437 460,815,079 0 0
- --------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from capital share
transactions........... $537,345,179 $ (15,256,148)
- --------------------------------------------------------------------------------
</TABLE>
* For Class A, Class C and Class Y, for the period from January 20, 1998, March
6, 1998 and March 9, 1998, respectively (commencement of class operations) to
October 31, 1998.

67
<PAGE>

COMBINED NOTES TO FINANCIAL STATEMENTS (continued)

Latin America Fund

<TABLE>
<CAPTION>
Year Ended Year Ended
October 31, 1998 October 31, 1997
------------------------ ------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A
Shares sold............... 1,613,531 $ 15,352,461 793,746 $ 12,013,304
Shares redeemed........... (2,045,506) (19,559,738) (755,902) (10,989,824)
Shares issued on
reinvestment of
distributions............ 253,396 2,718,936 7,159 82,042
- -------------------------------------------------------------------------------
Net increase (decrease)... (178,579) (1,488,341) 45,003 1,105,522
- -------------------------------------------------------------------------------
CLASS B
Shares sold............... 1,117,118 10,223,995 1,353,616 18,851,845
Shares redeemed........... (3,992,062) (38,151,546) (2,761,745) (37,765,324)
Shares issued on
reinvestment of
distributions............ 1,410,947 14,772,617 44,425 502,887
- -------------------------------------------------------------------------------
Net decrease.............. (1,463,997) (13,154,934) (1,363,704) (18,410,592)
- -------------------------------------------------------------------------------
CLASS C
Shares sold............... 129,986 1,190,136 305,017 4,400,152
Shares redeemed........... (537,453) (5,288,412) (261,244) (3,744,348)
Shares issued on
reinvestment of
distributions............ 203,815 2,133,947 4,841 54,852
- -------------------------------------------------------------------------------
Net increase (decrease)... (203,652) (1,964,329) 48,614 710,656
- -------------------------------------------------------------------------------
CLASS Y
Shares sold............... 3,714 39,405 0 0
Shares redeemed........... 0 0 0 0
Shares issued on
reinvestment of
distributions............ 0 0 0 0
- -------------------------------------------------------------------------------
Net increase.............. 3,714 39,405 0 0
- -------------------------------------------------------------------------------
Net decrease in net assets
resulting from capital
share transactions....... $(16,568,199) $(16,594,414)
- -------------------------------------------------------------------------------
</TABLE>

Precious Metals Fund

<TABLE>
<CAPTION>
Year Ended October 31,
--------------------------------------------------- Year Ended
1998** 1997* February 28, 1997
------------------------- ------------------------ --------------------------
Shares Amount Shares Amount Shares Amount
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold............. 8,349,123 $ 105,589,468 0 0 0 0
Automatic conversion of
Class B shares to
Class A shares......... 5,262,793 65,498,249 0 0 0 0
Shares redeemed......... (9,374,304) (120,653,639) 0 0 0 0
Shares issued in
acquisition of:
Blanchard Precious
Metals Fund............ 2,927,140 39,424,759 0 0 0 0
- ----------------------------------------------------------------------------------------------------------
Net increase............ 7,164,752 89,858,837 0 0 0 0
- ----------------------------------------------------------------------------------------------------------
CLASS B
Shares sold............. 5,743,525 72,210,449 4,394,845 $ 83,990,548 25,602,726 $ 618,026,217
Automatic conversion of
Class B shares to
Class A shares......... (5,262,793) (65,498,249) 0 0 264,364 5,971,990
Shares redeemed......... (5,616,171) (71,713,756) (5,332,804) (103,860,464) (26,171,322) (638,015,009)
Shares issued on
reinvestment of
distributions.......... 357,072 4,759,767 0 0 0 0
- ----------------------------------------------------------------------------------------------------------
Net decrease............ (4,778,367) (60,241,789) (937,959) (19,869,916) (304,232) (14,016,802)
- ----------------------------------------------------------------------------------------------------------
CLASS C
Shares sold............. 146,046 1,761,107 0 0 0 0
Shares redeemed......... (97,906) (1,087,497) 0 0 0 0
- ----------------------------------------------------------------------------------------------------------
Net increase............ 48,140 673,610 0 0 0 0
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from capital share
transactions........... $ 30,290,658 $(19,869,916) $ (14,016,802)
- ----------------------------------------------------------------------------------------------------------
</TABLE>
* For the eight-month period ended October 31, 1997. The Fund changed its
fiscal year end from February 28 to October 31, effective October 31, 1997.
** For Class A and Class C, for the period from January 20, 1998, January 29,
1998, respectively (commencement of class operations) to October 31, 1998.

68
<PAGE>

COMBINED NOTES TO FINANCIAL STATEMENTS (continued)

6. SECURITIES TRANSACTIONS

Cost of purchases and proceeds from sales of investment securities (excluding
short-term securities) were as follows for the year ended October 31, 1998:

<TABLE>
<CAPTION>
Cost of Proceeds
Purchases from Sales
-------------------------
<S> <C> <C>
Emerging Markets Fund................. $186,880,696 $179,828,487
Global Leaders Fund................... 120,575,541 43,229,414
Global Opportunities Fund............. 337,161,705 458,946,768
International Growth Fund............. 416,150,214 341,830,948
Latin America Fund.................... 134,605,390 177,637,399
Precious Metals Fund.................. 48,957,448 58,217,491
</TABLE>

On February 27, 1998, Global Leaders Fund and Precious Metals Fund acquired se-
curities, excluding cash equivalents with an aggregate cost $17,482,077 and
$69,681,600, respectively, from the Funds' acquisition of Blanchard Global
Growth Fund and Blanchard Precious Metals Fund.

On July 27, 1998 and October 28, 1998, International Growth Fund acquired secu-
rities, excluding cash equivalents, with an aggregate cost $140,583,382 and
$221,072,532, respectively, from the Fund's acquisition of CoreFund Inc. Inter-
national Growth Fund and Evergreen International Equity Fund.

On October 31, 1998, the composition of unrealized appreciation and deprecia-
tion of investment securities based on the aggregate cost of investments for
federal income tax purposes was as follows:

<TABLE>
<CAPTION>
Gross Gross Net Unrealized
Tax Unrealized Unrealized Appreciation
Cost Appreciation Depreciation (Depreciation)
-----------------------------------------------------
<S> <C> <C> <C> <C>
Emerging Markets
Fund........... $ 58,376,022 $ 1,969,545 $ (1,810,372) $ 159,173
Global Leaders
Fund........... 297,836,329 67,197,419 (24,184,311) 43,013,108
Global
Opportunities
Fund........... 190,364,922 28,747,192 (9,746,131) 19,001,061
International
Growth Fund.... 587,180,038 69,840,569 (26,615,271) 43,225,298
Latin America
Fund........... 42,979,803 (1,855,850) (3,519,464) (5,375,314)
Precious Metals
Fund........... 157,490,552 11,857,318 (60,509,648) (48,652,330)
</TABLE>

At October 31, 1998, the Funds had capital loss carryforwards for federal in-
come tax purposes as follows:

<TABLE>
<CAPTION>
Capital
Loss Expires Expires
Carryover 2005 2006
<S> <C> <C> <C>
-----------------------------------
Emerging Markets Fund...... $15,126,000 $ 0 $15,126,000
Global Leaders Fund........ 999,000 999,000 0
International Growth Fund.. 34,805,000 22,838,000 11,967,000
Latin America Fund......... 18,781,000 0 18,781,000
Precious Metals Fund....... 54,811,000 4,503,000 50,308,000
</TABLE>

The portion of International Growth Fund's capital loss carryforward expiring
on October 31, 2005 was created as a result of the October 28, 1998 acquisition
of substantially all the net assets of Evergreen International Equity Fund in
exchange for International Growth Fund shares. In accordance with income tax
regulations, certain International Growth Fund gains may not be used to offset
this capital loss carryforward. The portion of Global Leaders Fund's capital
loss carryforward expiring on October 31, 2005 was created as a result of the
February 27, 1998 acquisition of substantially all the net assets of Blanchard
Global Growth Fund in exchange for Global Leaders Fund shares. In accordance
with income tax regulations, certain Global Leaders Fund gains may not be used
to offset this capital loss carryforward.

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 their principal underwriter for costs related to selling
shares of the Funds and for various other services. These costs, which consist
primarily of commis-

69
<PAGE>

COMBINED NOTES TO FINANCIAL STATEMENTS (continued)

sions and service fees to brokers that 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 an annual rate of 0.25% of the
average daily net asset value of the class. Class B and Class C also pay dis-
tribution fees equal to an annual rate of 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 under the Distribution Plan. The Fund may compensate the principal under-
writer for such excess amounts in later years with annual interest at the prime
rate plus 1.00%.

During the year ended October 31, 1998, amounts paid to EDI 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>
----------------------------
Emerging Markets Fund............. $ 13,066 $ 39,181 $ 7,714
Global Leaders Fund .............. 215,079 1,563,095 32,476
Global Opportunities Fund......... 195,706 1,765,392 347,189
International Growth Fund......... 206,478 731,966 11,560
Latin America Fund................ 28,095 581,108 80,324
Precious Metals Fund.............. 175,596 433,818 3,709
</TABLE>

Each of the Distribution Plans may be terminated at any time by vote of the In-
dependent Trustees or by vote of a majority of the outstanding voting shares of
the respective class.

8. INVESTMENT MANAGEMENT AGREEMENT AND OTHER AFFILIATED TRANSACTIONS

First Union National Bank ("FUNB") is the investment adviser to Emerging Mar-
kets Fund. Pursuant to an agreement with the Fund, FUNB is entitled to an an-
nual fee based on Emerging Markets Fund's average daily net assets, in accor-
dance with the following schedule:

<TABLE>
<CAPTION>
Average Daily Net Assets
------------------------
<S> <C>
on the first $100 million................... 1.50%
on the next $100 million.................... 1.45%
on the next $100 million.................... 1.40%
in excess of $300 million................... 1.35%
</TABLE>

For Emerging Markets Fund, FUNB voluntarily waived $119,348 of its advisory fee
for the year ended October 31, 1998.

EIMCO serves as the investment sub-adviser to Emerging Markets Fund. Under the
terms of Emerging Market Fund's sub-advisory agreement, EIMCO is responsible
for the investment decisions for the Fund and is paid by FUNB at no additional
expense to the Funds.

Evergreen Asset Management Corp. ("EAMC"), a wholly-owned subsidiary of First
Union, serves as investment adviser to Global Leaders Fund and is paid a man-
agement fee that is computed daily and paid monthly at an annual rate of .95%
of Global Leaders Fund's average daily net assets. EAMC has voluntarily agreed
to reimburse Global Leaders Fund to the extent that the Fund's operating ex-
penses (including the investment advisory fee and amortization of organization
expenses but excluding interest, taxes, brokerage commissions, 12b-1 distribu-
tion and shareholder servicing fees and extraordinary expenses) exceed 1.50% of
its average daily net assets. EAMC can modify or terminate voluntary waivers at
any time. Lieber & Company, an affiliate of First Union, is the investment sub-
adviser for Global Leaders Fund. Leiber & Company provides these services at no
additional cost to the Fund.

70
<PAGE>

COMBINED NOTES TO FINANCIAL STATEMENTS (continued)

The investment Adviser for Global Opportunities Fund, International Growth
Fund, Latin America Fund and Precious Metals Fund is EIMCO. EIMCO is a subsidi-
ary 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>
Global International Latin
Opportunities Growth America
Average Daily Net Assets Fund Fund Fund
-------------------------------------------------------------
<S> <C> <C> <C>
on the first $200 million.. 1.00% 0.75% 0.75%
on the next $200 million .. 0.95% 0.65% 0.65%
on the next $200 million... 0.85% 0.55% 0.55%
in excess of $600 million.. 0.75% 0.45% 0.45%
<CAPTION>
Precious
Metals
Average Daily Net Assets Fund
---------------------------------------
<S> <C>
on the first $100 million.. 0.750%
on the next $100 million... 0.625%
in excess of $200 million.. 0.500%
</TABLE>

Lieber & Company also provides brokerage services with respect to substantially
all security transactions of the Global Leaders Fund effected on the New York
or American Stock Exchanges. For the year ended October 31, 1998, Global Lead-
ers Fund incurred brokerage commissions of $134,741 with Lieber & Company.

For Precious Metals Fund, Harbor Capital Management Company, Inc. ("Harbor Cap-
ital"), serves as a consultant to EIMCO and its subsidiary pursuant to a Con-
sultant Agreement. In accordance with the terms of the Consultant Agreement,
Harbor Capital provides EIMCO 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 re-
ceives from EIMCO 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.

Evergreen Investment Services ("EIS"), a subsidiary of First Union, is the ad-
ministrator and BISYS is sub- administrator to the Funds. As administrator, EIS
provides the Funds with facilities, equipment and personnel. As sub-administra-
tor to the Funds, BISYS provides the officers of the Funds. The administrator
and sub- administrator for the Emerging Markets Fund and the Global Leaders
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 sub-
sidiaries are also the investment advisers. The administration fee is calcu-
lated 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 each
Fund. The sub-administration fee is calculated by applying percentage rates,
which start at 0.01% and decline to .004% per annum as net assets increase, to
the average daily net asset value of each Fund. For Global Leaders Fund the ad-
ministration and sub-administration fee is paid by its investment adviser and
is not a Fund expense. For the year ended October 31, 1998, Emerging Markets
Fund paid $16,289 to EIS and $3,855 to BISYS for providing administrative and
sub-administrative services. EIS and BISYS provide administration and sub-ad-
ministration services to Global Opportunities Fund, International Growth Fund,
Latin America Fund and Precious Metals Fund at no cost to the Funds. For the
year ended October 31, 1998, Global Opportunities Fund, International Growth
Fund, Latin America Fund and Precious Metals Fund reimbursed EIMCO for certain
administrative and accounting expenses amounting to $33,935, $39,790, $10,679
and $17,406.

Evergreen Service Company ("ESC"), an indirect, wholly-owned subsidiary of
First Union, serves as the transfer and dividend disbursing agent for the
Funds. The Funds have entered into an expense offset arrangement with ESC re-
lating to certain cash balances held at First Union for the benefit of the Ev-
ergreen 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.

71
<PAGE>

COMBINED NOTES TO FINANCIAL STATEMENTS (continued)

10. DEFERRED 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 install-
ments 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 October 31, 1998, the value of the Trustees deferral accounts
were $2,063, $12,989, $13,230, $14,251, $3,551 and $3,368 for Emerging Markets
Fund, Global Leaders Fund, Global Opportunities Fund, International Growth
Fund, Latin America Fund and Precious Metals Fund, respectively.

11. FINANCING AGREEMENTS

On October 31, 1997, a temporary financing agreement between the participating
Funds and First Union became effective. Under this agreement, First Union pro-
vided a fully committed unsecured credit facility in the aggregate amount of
$300 million. Borrowings under this facility bore interest at 1.00% per annum
above the Federal Funds rate. State Street served as administrative agent under
this agreement, but received no compensation for its services. This agreement
was terminated on December 22, 1997.

On December 22, 1997, a financing agreement among all of the Evergreen Funds,
State Street and a group of banks ("Banks") became effective. Under this agree-
ment, 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 Fed-
eral 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.

Below is a summary of the borrowing activity for each Fund that utilized the
line of credit during the year ended October 31, 1998:

<TABLE>
<CAPTION>
Number of
Days the Average Daily Maximum Daily
Interest Line of Credit Balance Weighted Average Balance
Fund Expense was used Outstanding Interest Rate Outstanding
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Global Leaders Fund..... $24,471 50 $2,843,360 5.94% $13,100,000
Precious Metals Fund.... 64,756 91 4,394,945 5.39% 10,761,000
Global Opportunities 136 1 800,000 6.13% 800,000
Fund...................
</TABLE>

During the year ended October 31, 1998, the Emerging Markets Fund, Interna-
tional Growth Fund and Latin America Fund had no borrowings under these agree-
ments.

12. DISTRIBUTIONS TO SHAREHOLDERS

On November 23, 1998, Global Opportunities Fund declared distributions from
long-term capital gains of $1.217 per share, payable on November 25, 1998 to
shareholders of record November 23, 1998. These distributions are not reflected
in the accompanying financial statements.

72
<PAGE>

INDEPENDENT AUDITORS' REPORT

The Trustees and Shareholders of
Evergreen International Trust

We have audited the accompanying statements of assets and liabilities, includ-
ing the schedules of investments, of four of the Funds comprising Evergreen In-
ternational Trust listed below as of October 31, 1998, and the related state-
ments of operations, and changes in net assets, and financial highlights of
each of the years or periods listed below:

Evergreen Global Opportunities Fund - statement of operations for the year
ended October 31, 1998, statements of changes in net assets for the year
ended October 31, 1998, the one-month period ended October 31, 1997 and the
year ended September 30, 1997 and the financial highlights for the years or
periods presented on pages 32 to 33.

Evergreen International Growth Fund - (formerly Keystone International
Fund, Inc.) statement of operations for the year ended October 31, 1998,
statements of changes in net assets for the three years ended October 31,
1998 and the financial highlights for the years presented on pages 34 to
35.

Evergreen Latin America Fund - statement of operations for the year ended
October 31, 1998, statements of changes in net assets for the three years
ended October 31, 1998 and the financial highlights for the years presented
on pages 36 to 37.

Evergreen Precious Metals Fund - (formerly Keystone Precious Metals Hold-
ings, Inc.) statement of operations for the year ended October 31, 1998,
statements of changes in net assets for the year ended October 31, 1998,
the eight-month period ended October 31, 1997 and the year ended February
28, 1997 and the financial highlights for the years or periods presented on
pages 38 to 39.

These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on these fi-
nancial statements and financial highlights based on our audits.

We conducted our audits in accordance with generally accepted auditing stan-
dards. Those standards require that we plan and perform our audit to obtain
reasonable assurance about whether the financial statements and financial high-
lights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of October 31, 1998 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reason-
able basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Ever-
green Global Opportunities Fund, Evergreen International Growth Fund, Evergreen
Latin America Fund and Evergreen Precious Metals Fund as of October 31, 1998,
the results of their operations, changes in their net assets and financial
highlights for each of the years or periods specified in the first paragraph
above in conformity with generally accepted accounting principles.

KPMG Peat Marwick LLP
Boston, Massachusetts
December 11, 1998

73
<PAGE>

REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Trustees and Shareholders of
Evergreen Emerging Markets Growth Fund and
Evergreen Global Leaders Fund

In our opinion, the accompanying statements of assets and liabilities, includ-
ing the schedules of investments, and the related statements of operations and
of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Evergreen Emerging Markets Growth
Fund and Evergreen Global Leaders Fund (the "Funds") at October 31, 1998, the
results of each of their operations for the year then ended, the changes in
each of their net assets for each of the two years in the period then ended,
and the financial highlights for each of the three years in the period then
ended, in conformity with generally accepted accounting principles. These fi-
nancial statements and financial highlights (hereafter referred to as "finan-
cial statements") are the responsibility of the Funds' management; our respon-
sibility is to express an opinion on these financial statements based on our
audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and per-
form the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presenta-
tion. We believe that our audits, which included confirmation of securities at
October 31, 1998 by correspondence with the custodian, provide a reasonable ba-
sis for the opinion expressed above. The financial highlights of Evergreen
Emerging Markets Growth Fund for the periods ended October 31, 1995 and Decem-
ber 31, 1994 were audited by other independent accountants, whose report dated
December 8, 1995 expressed an unqualified opinion on those statements.

PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036

December 11, 1998

74
<PAGE>

ADDITIONAL INFORMATION (UNAUDITED)

YEAR 2000
Like other investment companies, the Funds could be adversely affected if the
computer systems used by the Funds' investment Advisers and the Funds' other
service providers are not able to perform their intended functions effectively
after 1999 because of the inability of computer software to distinguish the
year 2000 from the year 1900. The Funds' investment Advisers are taking steps
to address this potential year 2000 problem with respect to the computer sys-
tems that they use and to obtain satisfactory assurances that comparable steps
are being taken by the Funds' other major service providers. At this time, how-
ever, there can be no assurance that these steps will be sufficient to avoid
any adverse impact on the Funds from this problem.

- --------------------------------------------------------------------------------
FEDERAL TAX STATUS OF DISTRIBUTIONS

Pursuant to section 852 of the Internal Revenue Code, the Funds have
designated the following amounts as long-term 28% capital gain dis-
tributions and long-term 20% capital gain distributions for the fis-
cal year ended October 31, 1998:

<TABLE>
<CAPTION>
Aggregate Per Share
----------------------- -----------
28% 20% 28% 20%
--------------------------------
<S> <C> <C> <C> <C>
Emerging Markets.......... $ 751,013 $ 991,880 $0.11 $0.14
Global Leaders............ 0 492,742 0.00 0.03
Global Opportunities...... 8,743,435 10,559,493 0.57 0.69
International Growth...... 8,242,661 15,375,334 0.47 0.89
Latin America............. 11,251,172 10,689,492 1.08 1.78
Precious Metals........... 3,470,293 2,177,051 0.50 0.31
</TABLE>

For corporate shareholders, the following percentages of ordinary in-
come dividends paid during the fiscal year ended October 31, 1998
qualified for the dividends received deduction.

<TABLE>
<S> <C>
Global Leaders............................................. 5.46%
</TABLE>

Shareholders are advised to use information received on Form 1099 to
determine their taxable long-term capital gain distribution rather
than the per share amounts presented above.
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75
<PAGE>

Evergreen Funds

Money Market
Treasury Money Market Fund
Money Market Fund
Municipal Money Market Fund
Florida Municipal Money Market Fund
New Jersey Municipal Money Market Fund
Pennsylvania Municipal Money Market Fund

Tax 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 Yield 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 and Income Fund
Small Cap Equity Income Fund

Domestic Growth
Tax Strategic Equity Fund
Strategic Growth Fund
Stock Selector Fund
Evergreen Fund
Omega Fund
Small Company Growth Fund
Aggressive Growth Fund
Micro Cap Fund

Global International
Global Leaders Fund
International Growth Fund
Global Opportunities 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.evergreen.funds.com

61521 541076 RV2 12/98

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BULK RATE
U.S. POSTAGE
PAID
PERMIT NO. 19
HUDSON, MA
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[LOGO OF EVERGREEN FUNDS(SM) APPEARS HERE]

200 Berkeley Street
Boston, MA 02116