1933 Act No. 333-42195
1940 Act No. 811-08553
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 5
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [ ]
Amendment No. 6 [X]
EVERGREEN INTERNATIONAL TRUST
(Exact Name of Registrant as Specified in Charter)
200 Berkeley Street, Boston, Massachusetts 02116-5034
(Address of Principal Executive Offices)
(617) 210-3200
(Registrant's Telephone Number)
The Corporation Trust Company
1209 Orange Street
Wilmington, Delaware 19801
(Name and Address of Agent for Service)
It is proposed that this filing will become effective: [] immediately upon
filing pursuant to paragraph (b) [ ] on (date) pursuant to paragraph (b) [X] 60
days after filing pursuant to paragraph (a)(i) [ ] on (date) pursuant to
paragraph (a)(i) [ ] 75 days after filing pursuant to paragraph (a)(ii) [ ] on
(date) pursuant to paragraph (a)(ii) of Rule 485
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment
[ ] 60 days after filing pursuant to paragraph (a)(i) [ ] on (date) pursuant to
paragraph (a)(i)
<PAGE>
EVERGREEN INTERNATIONAL TRUST
CONTENTS OF
POST-EFFECTIVE AMENDMENT NO. 5
TO
REGISTRATION STATEMENT
This Post-Effective Amendment No. 5 to Registrant's Registration Statement
No. 333-42195/811-08553 consists of the following pages, items of information
and documents:
PART A
------
Prospectuses for Evergreen Emerging Markets Growth Fund,
Evergreen Global Leaders Fund, Evergreen Global Opportunities Fund,
Evergreen Latin America Fund, Evergreen Precious Metals Fund and
Evergreen International Growth Fund is contained herein.
PART B
------
Statement of Additional Information for Evergreen Emerging Markets Growth Fund,
Evergreen Global Leaders Fund, Evergreen Global Opportunities Fund,
Evergreen Latin America Fund, Evergreen Precious Metals Fund and
Evergreen International Growth Fund is contained herein.
PART C
------
Exhibits
Indemnification
Business and Other Connections of Investment Adviser
Principal Underwriter
Location of Accounts and Records
Undertakings
Signatures
EVERGREEN
INTERNATIONAL
AND
GLOBAL
GROWTH
Funds
Evergreen Emerging Markets Growth Fund
Evergreen Global Leaders Fund
Evergreen Global Opportunities Fund
Evergreen International Growth Fund
Evergreen Latin America Fund
Evergreen Precious Metals Fund
Class A
Class B
Class C
Prospectus, March 1, 1999
The Securities and Exchange Commission has not determined that the information
in this prospectus is accurate or complete, nor has it approved or disapproved
of these mutual fund shares. Anyone who tells you otherwise is committing a
federal crime.
FUND SUMMARIES:
Evergreen Emerging Markets Growth Fund 4
Evergreen Global Leaders Fund 6
Evergreen Global Opportunities 8
Evergreen International Growth Fund 10
Evergreen Latin America Fund 14
Evergreen Precious Metals Fund 12
GENERAL INFORMATION:
The Funds' Investment Advisors 18
The Funds' Portfolio Managers 18
Calculating the Share Price 18
How to Choose a Fund 18
How to Choose the Share Class
That Best Suits You 18
How to Buy Shares 19
How to Redeem Shares 20
Other Services 21
The Tax Consequences of
Investing in the Funds 22
Fees and Expenses of the Fund 23
Financial Highlights 24
Other Fund Practices 32
In general, Funds included in this prospectus seek to provide investors with a
selection of investment alternatives which seek to provide capital growth and
diversification. The Funds, with the exception of Evergreen Precious Metals
Fund, invest a significant portion of their assets in securities of issuers
located outside the United States and Evergreen Global Leaders Fund and
Evergreen Global Opportunities Fund also include securities of issuers located
within the United States in their portfolios.
Fund Summaries Key
Each Fund's summary is organized around the following basic topics and
questions:
INVESTMENT GOAL
What is the Fund's financial objective You can find clarification on how the
Fund seeks to achieve its objective by looking at the Fund's strategy and
investment policies. The Fund's Board of Trustees can change the investment
objective without a shareholder vote.
INVESTMENT STRATEGY
How does the fund go about trying to meet its goals? What types of investments
does it contain? What style of investing and investment philosophy does it
follow? Does it have limits on the amount invested in any particular type of
security?
RISK FACTORS
What are the specific risks for an investor in the Fund?
PERFORMANCE
How well has the Fund performed in the past year? The past five years? The past
ten years?
EXPENSES
How much does it cost to invest in the Fund? What is the difference between
sales charges and expenses?
International
and Global
Growth Funds
typically rely on one or a combination of the following
strategies:
investing primarily in equity securities of foreign countries
with developed and/or emerging markets;
investing a portion of assets in debt securities; and
investing in a combination of countries which includes the
United States and foreign markets may be appropriate for investors who:
want a selection of investment alternatives;
seek capital growth and diversification; and
are more aggressive and are interested in investment
opportunities found in the more volatile climate of
international or emerging markets.
Following this overview, you will find information on each
International and Global Growth Fund's specific strategies and
risks.
Risk Factors For All Mutual Funds Please remember that mutual fund shares are:
not guaranteed to achieve their investment goal
not insured, endorsed or guaranteed by the FDIC, a bank or
any government agency
subject to investment risks, including possible loss of your
original investment
Like most investments, your investment in an Evergreen International and Global
Growth Fund could fluctuate significantly in value over time and could result in
a loss of
money.
Here are the most important factors that may affect the value of your
investment:
Stock Market Risk
Your investment will be affected by general economic conditions such as
prevailing economic growth, inflation and interest rates. When economic growth
slows, or interest or inflation rates increase, equity securities tend to
decline in value. Such events also could cause companies to decrease the
dividends they pay. If these events were to occur, the value of and dividend
yield and total return earned on your investment would likely decline. Even if
general economic conditions do not change, the value of and dividend yield and
total return earned on your investment would decline if the particular
industries, companies or sectors your Fund invests in did not perform well.
Interest Rate Risk
When interest rates go up, the value of debt securities tends to fall. If your
Fund invests a significant portion of its portfolio in debt securities or
dividend paying stocks and if interest rates rise, then the value of and total
return earned on your investment may decline. When interest rates go down,
interest earned by your Fund on its debt investment may also decline, which
could cause the Fund to reduce the dividends it pays.
Credit Risk
The value of a debt security is directly affected by the issuer's ability to
repay principal and interest on time. If your Fund invests in debt securities,
then the value of and total return on your investment may be decline if an
issuer fails to pay an obligation on a timely basis.
Emerging Markets Risk
An "emerging market" is any country considered to be emerging or developing, has
a relatively low gross national product, but the potential for rapid growth
(which can lead to instability). Investing in securities of emerging countries
has a diversity of risk. Emerging countries are generally small and rely heavily
on international trade and could be adversely effected by the economic
conditions in the countries with which they trade. There is also a possibility
of a change in the political climate, nationalization, diplomatic developments
(including war), and social instability. Such countries may experience high
levels of inflation or deflation and currency devaluation. Investments in
emerging markets are considered to be speculative.
Foreign Investment Risk
A Fund's investment in non-U.S. securities could expose it to certain unique
risks of foreign investing. For example, political turmoil and economic
instability in the countries in which the Fund invests could adversely affect
the value of your investment. In addition, if the value of any foreign currency
in which the Fund's investments are denominated declines relative to the U.S.
dollar, the value and total return of your investment in the Fund may decline as
well. Certain foreign countries have less developed and less regulated
securities markets and accounting systems that the U.S. This may make it harder
to get accurate information about a security or company, and increase the
likelihood that an investment will not perform as well as expected.
Emerging Markets
Growth Fund
FUND FACTS:
Goal:
Long-term capital appreciation
Principal Investments:
Emerging Markets equity securities
Classes of Shares Offered in This Prospectus:
Class A
Class B
Class C
Investment Advisor:
Evergreen Investment Management
Portfolio Manager:
Gilman C. Gunn
NASDAQ Symbols
EMGAX (Class A)
EMGBX (Class B)
Dividend Payment Schedule:
Annually
INVESTMENT GOAL
The Fund seeks to provide investors with long-term capital appreciation.
INVESTMENT STRATEGY
The Fund invests at least 65% of its assets in equity securities of issuers
located in emerging markets. The Fund may also invest in other types of
instruments, including investment-grade debt securities.
Each of the Evergreen International and Global Growth Funds may invest in high
quality money market instruments in response to adverse economic, political or
market conditions. This strategy is inconsistent with the Funds' principal
investment strategy and investment objective, and if employed could result in a
lower return and loss of market opportunity.
Risk Factors
Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 3 under the headings:
Stock Market Risk
Interest Rate Risk
Credit Risk
Emerging Markets
Foreign Investment Risk
PERFORMANCE
The following charts show how the Fund has performed in the past. Past
performance is not an indication of future results.
The chart below shows the percentage gains or loss for Class A shares of the
Fund in each calendar year since the Class A shares' inception on 9/6/94. It
should give you a general idea of how the Fund's return has varied from
year-to-year. This graph includes the effects of Fund expenses, but not sales
charges. Returns would be lower if sales charges were included.
Year-by-Year Total Return for Class A Shares (%)
1994* 1995 1996 1997 1998
- -18.30% 2.07% 10.01% 13.48% %
Best Quarter: 2nd Quarter 1997 14.66%
Worst Quarter: 3rd Quarter 1998 -15.81%
*Since inception on 9/6/94 to 12/31/94.
This next table lists the Fund's average year-by-year return by class over the
past year or since inception (through 12/31/98), including sales charges. This
table is intended to provide you with some indication of the risks of investing
in the Fund. At the bottom of the table you can compare this performance with
the Morgan Stanley Emerging Markets Index ("MSEMI"). MSEMI is a broad market
performance benchmark for emerging markets throughout the world which tracks
investments similar to the Fund's; it is not an actual investment.
Average Annual Total Return
(for the period ended 12/31/98)
Inception Since
Date 1 year 5 year 10 year Inception
Class A 9/6/94 % % N/A %
Class B 9/6/94 % % N/A %
Class C 9/6/94 % % N/A %
MSEMI % % N/A % *
* From 9/6/94 to 12/31/98.
EXPENSES
This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.
Shareholder Fees (fees paid directly from your
investment)
Shareholder Transaction Expenses Class A Class B Class C
Maximum sales charge imposed on 4.75% None None
purchases (as a % of offering price)
Maximum deferred sales charge None(1) 5.00% 1.00%
(as a % of either the redemption
amount or initial investment whichever
is lower)
(1) Investments of $1 million or more are not subject to a front-end sales
charge, but may be subject to a contingent deferred sales charge of 1.00% upon
redemption within one year after the month of purchase.
Annual Fund Operating Expenses (expenses that are
deducted from Fund assets)
Management 12b-1 Other Total Fund
Fees Fees Expenses Operating Expenses*
Class A 1.50% 0.25% 0.49% 2.24%
Class B 1.50% 1.00% 0.49% 2.99%
Class C 1.50% 1.00% 0.49% 2.99%
*Estimated for the fiscal year ending 10/31/99
The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual funds and is
for illustration only. The example assumes a 5% average annual return and that
you reinvest all of your dividends. Your actual costs may be higher or lower.
Example of Fund Expenses
Assuming Redemption at Assuming
End of Period No Redemption
Class A Class B Class C Class B Class C
After 1 year $691 $802 $402 $302 $302
After 3 years $1,142 $1,224 $924 $924 $924
After 5 years $1,618 $1,772 $1,572 $1,572 $1,572
After 10 years $2,927 $3,051 $3,308 $3,051 $3,308
Global Leaders
Fund
FUND FACTS:
Goal:
Long-term capital growth
Principal Investment:
U.S and non-U.S. Equity Securities
Classes of Shares Offered in This Prospectus:
Class A
Class B
Class C
Investment Advisor:
Evergreen Asset Management Corp.
Portfolio Manager:
Stephen A. Lieber
Edwin Miska
NASDAQ Symbols:
EAGLX (Class A)
EBGLX (Class B)
Dividend Payment Schedule:
Annually
INVESTMENT GOAL
The Fund seeks to provide investors with long-term capital growth.
INVESTMENT STRATEGY
The Fund normally invests at least 65% of its assets in a diversified portfolio
of U.S. and non-U.S. equity securities of companies located in the world's major
industrialized countries. The Fund will make investments in no less than three
countries, which may include the United States, but may invest more than 25% of
its total assets in one country. The Fund's investment advisor will screen the
largest companies in major industrialized countries and based on certain
qualitative and quantitive criteria (which includes those companies with the
highest return on equity and consistent earnings growth), and in the opinion of
the advisor, will invest only in the best 100.
Each of the Evergreen International and Global Growth Funds may invest in high
quality money market instruments in response to adverse economic, political or
market conditions. This strategy is inconsistent with the Funds' principal
investment strategy and investment objective, and if employed could result in a
lower return and loss of market opportunity.
Risk Factors
Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 3 under the headings:
Stock Market Risk
Interest Rate Risk
Credit Risk
Foreign Investment Risk
In addition, if more than 25% of the Fund's total assets is invested in one
country, the value of the Fund's shares may be subject to greater fluctuation
due to the lesser degree of diversification across countries and the fact that
the securities markets of certain countries may be subject to greater risks and
volatility than that which exists in the United States.
Performance
The following charts show how the Fund has performed
in the past. Past performance is not an indication of
future results
The chart below shows the percentage gain or loss of the Fund's Class A shares
in each calendar year since 11/1/95. It should give you a general idea of how
the Fund's return has varied from year-to-year. This graph includes the effects
of Fund expenses, but not sales charges. Returns would be lower if sales charges
were included.
Year-by-Year Total Return for Class A Shares (%)
1995* 1996* 1997 1998
3.41% 19.24% 13.35% %
Best Quarter: 1st Quarter 1998 14.73%
Worst Quarter: 3rd Quarter 1998 -13.69%
*Historical performance for Class A,B and C prior to inception reflects that of
Class Y, the original class offered, the inception of which is 11/1/95, and does
not include 12b-1 fees. If such fees were reflected, returns would
have been lower.
Performance includes the reinvestment of income dividends and capital gain
distributions. Returns reflect expense limits previously in effect, without such
returns, would have been lower.
The next table lists the Fund's average year-by-year return by class over the
past one year or since inception (through 12/31/98), including sales charges.
This table is intended to provide you with some indication of the risks of
investing in the Fund. At the bottom of the table you can compare this
performance with the Morgan Stanley Capital International World Index (MSCIW).
The MSCIWI is a broad market performance benchmark for equity markets throughout
the world; it is not an actual investment.
Average Annual Total Return
(for the period ended 12/31/98)
Inception Since
Date 1 year 5 year 10 year Inception
Class A 6/3/96 % N/A N/A %
Class B 6/3/96 % N/A N/A %
Class C 6/3/96 % N/A N/A %
MSCIWI % N/A N/A %*
*From 6/3/96 to 12/31/99.
EXPENSES
This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.
Shareholder Fees (fees paid directly from your
investment)
Shareholder Transaction Expenses Class A Class B Class C
Maximum sales charge imposed on 4.75% None None
purchases (as a % of offering price)
Maximum deferred sales charge None(1) 5.00% 1.00%
(as a % of either the redemption
amount or initial investment whichever
is lower)
(1) Investments of $1 million or more are not subject to a front-end sales
charge, but may be subject to a contingent deferred sales charge of 1.00% upon
redemption within one year after the month of purchase.
Annual Fund Operating Expenses (expenses that are
deducted from Fund assets)
Management 12b-1 Other Total Fund
Fees Fees Expenses Operating Expenses*
Class A 0.95% 0.25% 0.58% 1.78%
Class B 0.95% 1.00% 0.58% 2.53%
Class C 0.95% 1.00% 0.58% 2.53%
*Estimated for the fiscal year ending 10/31/99 The table below shows the total
expenses you would pay on a $10,000 investment over one-, three-, five- and
ten-year periods. The example is intended to help you compare the cost of
investing in this Fund versus other mutual funds and is for illustration only.
The example assumes a 5% average annual return and that you reinvest all of your
dividends. Your actual costs may be higher or lower.
Example of Fund Expenses
Assuming Redemption at Assuming
End of Period No Redemption
Class A Class B Class C Class B Class C
After 1 year $647 $756 $356 $256 $256
After 3 years $1,009 $1,088 $788 $788 $788
After 5 years $1,394 $1,545 $1,345 $1,345 $1,345
After 10 years $2,470 $2,596 $2,866 $2,596 $2,866
Global
Opportunities Fund
FUND FACTS:
Goal:
Capital Growth
Principal Investment:
Equity securities of U.S. and non-U.S. companies
Classes of Shares Offered in This Prospectus:
Class A
Class B
Class C
Investment Advisor:
Evergreen Investment Management Company
Portfolio Managers:
Gilman C. Gunn
J. Gary Craven
NASDAQ Symbols:
EKGAX (Class A)
EKGBX (Class B)
EKGCX (Class C)
Dividend Payment Schedule
Annually
INVESTMENT GOAL The Fund seeks capital growth.
INVESTMENT STRATEGY
The Fund normally invests at least 65% of its assets in equity securities of
issuers located in at least three countries, one of which may be the U.S. The
Fund may also invest in emerging markets. When investing in securities of
issuers in the U.S. and other countries with developed securities markets, the
Fund invests in equity securities of small to medium sized companies that are in
a relatively early stage of development. When investing in foreign securities,
the Fund invests in equity securities of issuers that are well managed and
positioned to achieve above-average increases in revenue and earnings and strong
prospects for continued revenue growth. Although the Fund intends to invest in
common stock and convertible securities, it may also invest in debt securities
of the U.S., any foreign government and international agency as well as hold
cash and cash equivalents. The primary investment criterion used by the Fund in
the selection of portfolio securities is that the securities provide
opportunities for capital growth.
Each of the Evergreen International and Global Growth Funds may invest in high
quality money market instruments in response to adverse economic, political or
market conditions. This strategy is inconsistent with the Funds' principal
investment strategy and investment objective, and if employed could result in a
lower return and loss of market opportunity.
RISK FACTORS
Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 3 under the headings:
Stock Market Risk
Interest Rate Risk
Credit Risk
Emerging Markets Risk
Foreign Investment Risk
PERFORMANCE
The following charts show how the Fund has performed in the past. Past
performance is not an indication of future results.
This chart below shows the percentage gains or loss for Class A shares in each
of the last ten calendar years. It should give you a general idea of how the
Fund's return has varied from year-to-year. This graph includes the effects of
Fund expenses, but not sales charges. Returns would be lower if sales charges
were included.
Year-by-Year Total Return for Class A Shares (%)
1989 1990 1991 1992 1993 1994
10.81% -7.17% 31.66% 11.44% 37.71% 2.71%
1995 1996 1997 1998
23.66% 3.56% 1.10% %
Best Quarter: 3rd Quarter 1991 17.88%
Worst Quarter: 3rd Quarter 1998 -23.16%
This next table lists the Fund's average year-by-year return by class over the
past one, five and ten years and since inception (through 12/31/98) including
sales charges. This table is intended to provide you with some indication of the
risks of investing in the Fund. At the bottom of the table you can compare this
performance with the Morgan Stanley Capital International World Index (MSCIWI).
MSCIWI Bond Index is a broad market performance benchmark for equity markets
throughout the world; it is not an actual investment.
Average Annual Total Return
(for the period ended 12/31/98)
Inception Since
Date 1 year 5 year 10 year Inception
Class A 3/16/88 % % % %
Class B 2/1/93 % % % %
Class C 2/1/93
MSCIWI % % % % *
* From 3/16/88 to 1/31/99.
EXPENSES
This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.
Shareholder Fees (fees paid directly from your
investment)
Shareholder Transaction Expenses Class A Class B Class C
Maximum sales charge imposed on 4.75% None None
purchases (as a % of offering price)
Maximum deferred sales charge None(1) 5.00% 1.00%
(as a % of either the redemption
amount or initial investment whichever
is lower)
(1) Investments of $1 million or more are not subject to a front-end sales
charge, but may be subject to a contingent deferred sales
charge of 1.00% upon redemption within one year after the month of purchase.
Annual Fund Operating Expenses (expenses that are
deducted from Fund assets)
Management 12b-1 Other Total Fund
Fees Fees Expenses Operating Expenses*
Class A 0.99% 0.25% 0.65% 1.89%
Class B 0.99% 1.00% 0.65% 2.64%
Class C 0.99% 1.00% 0.65% 2.64%
*Estimated for the fiscal year ending 10/31/99
The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual funds and is
for illustration only. The example assumes a 5% average annual return and that
you reinvest all of your dividends. Your actual costs may be higher or lower.
Example of Fund Expenses
Assuming Redemption at Assuming
End of Period No Redemption
Class A Class B Class C Class B Class C
After 1 year $658 $767 $367 $267 $267
After 3 years $1,041 $1,120 $820 $820 $820
After 5 years $1,448 $1,600 $1,400 $1,400 $1,400
After 10 years $2,581 $2,707 $2,973 $2,707 $2,973
International
Growth Fund
FUND FACTS:
Goal:
Long-term Capital Growth
Modest income
Principal Investment:
Equity securities of non-U.S. companies in developed markets.
Classes of Shares Offered in This Prospectus:
Class A
Class B
Class C
Investment Advisor:
Evergreen Investment Management Company
Portfolio Manager:
Gilman C. Gunn
NASDAQ Symbols:
EKZAX (Class A)
EKZBX (Class B)
EKZCX (Class C)
Dividend Payment Schedule:
Annually
INVESTMENT GOAL
The Fund seeks long-term growth of capital and secondarily, modest income.
INVESTMENT STRATEGY
The Fund invests primarily in equity securities issued by established, quality
non-U.S.companies located in countries with developed markets. The Fund may also
invest in emerging markets and in securities of companies in the formerly
communist countries of Eastern Europe. The Fund invests at least 65% of its
total assets in the securities of companies in at least three different
countries (other than the U.S.). The Fund may also invest in debt securities,
including up to 10% of its assets in below investment grade debt securities.
Each of the Evergreen International and Global Growth Funds may invest in high
quality money market instruments in response to adverse economic, political or
market conditions. This strategy is inconsistent with the Funds' principal
investment strategy and investment objective, and if employed could result in a
lower return and loss of market opportunity.
RISK FACTORS
Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 3 under the headings:
Stock Market Risk
Interest Rate Risk
Credit Risk
Emerging Markets Risk
Foreign Investment Risk
Below investment grade bonds are commonly referred to as "junk bonds" because
they are usually backed by issuers of less proven or questionable financial
strength. Such issuers are more vulnerable to financial setbacks and less
certain to pay interest and principal than issuers of bonds offering lower
yields and risk. Markets may react to unfavorable news about issuers of below
investment grade bonds causing sudden and steep declines in value.
PERFORMANCE
The following charts show how the Fund has performed in the past. Past
performance is not an indication of future results.
This chart below shows the percentage gains or loss for Class B shares of the
Fund in each of the last ten calendar years. It should give you a general idea
of how the Fund's return has varied from year-to-year. This graph includes the
effects of Fund expenses, but not sales charges. Returns would be lower if sales
charges were included.
Year-by-Year Total Return for Class B Shares (%)
1989 1990 1991 1992 1993
4.27% -23.99 % 14.24 % 2.37 % 30.40%
1994 1995 1996 1997 1998
- -6.17% 11.47% 13.67% 10.85 % %
Best Quarter: 1st Quarter 1998 18.41%
Worst Quarter: 3rd Quarter 1990 -18.32%
The next table lists the Fund's average year-by-year return by class over the
past one, five and ten years and since inception (through 12/31/98), including
sales charges. This table is an intended to provide you with some indication of
the risks of investing in the Fund. At the bottom of the table you can compare
this performance with the Morgan Stanley Capital International Europe,
Australia, and Far East Index (MSCIEAFEI). MSCIEAFEI is a broad market
performance benchmark for equity securites throughout Europe, Australia and the
FarEast; it is not an actual investment.
Average Annual Total Return
(for the period ended 12/31/98)
Inception Since
Date 1 year 5 year 10 year Inception
Class A 1/20/98 N/A N/A N/A %
Class B 12/1/75 % % % %
Class C 3/6/98 N/A N/A N/A %
MSCIEAFEI % % % %*
* From 12/1/75 to 12/31/99.
EXPENSES
This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.
Shareholder Fees (fees paid directly from your
investment)
Shareholder Transaction Expenses Class A Class B Class C
Maximum sales charge imposed on 4.75% None None
purchases (as a % of offering price)
Maximum deferred sales charge None(1) 5.00% 1.00%
(as a % of either the redemption
amount or initial investment whichever
is lower)
(1) Investments of $1 million or more are not subject to a front-end sales
charge, but may be subject to a contingent deferred sales
charge of 1.00% upon redemption within one year after the month of purchase.
Annual Fund Operating Expenses (expenses that are
deducted from Fund assets)
Management 12b-1 Other Total Fund
Fees Fees Expenses Operating Expenses*
Class A 0.64% 0.25% 0.33% 1.22%
Class B 0.64% 1.00% 0.33% 1.97%
Class C 0.64% 1.00% 0.33% 1.97%
*Estimated for the fiscal year ending 10/31/99
The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual funds and is
for illustration only. The example assumes a 5% average annual return and that
you reinvest all of your dividends. Your actual costs may be higher or lower.
Example of Fund Expenses
Assuming Redemption at Assuming
End of Period No Redemption
Class A Class B Class C Class B Class C
After 1 year $593 $700 $300 $200 $200
After 3 years $844 $918 $618 $618 $618
After 5 years $1,113 $1,262 $1,062 $1,062 $1,062
After 10 years $1,882 $2,011 $2,296 $2,011 $2,296
Latin America
Fund
FUND FACTS:
Goal:
Long-term Capital Growth
Principal Investment:
Latin American Equity Securities
Classes of Shares Offered in This Prospectus:
Class A
Class B
Class B
Investment Advisor:
Evergreen Investment Management Company
Portfolio Manager:
Antonio Docal
Francis X. Claro
NASDAQ Symbols:
EKLAX (Class A)
EKLBX (Class B)
EKLCX (Class C)
Dividend Payment Schedule:
Annually
INVESTMENT GOAL
The Fund seeks long-term growth of capital through investments in equity
securities of Latin America.
INVESTMENT STRATEGY
The Fund normally invests at least 65% of its assets in securities of issuers in
Latin America and ordinarily maintains investments in at least three Latin
American countries. The Fund may also invest in debt securities, and up to 49%
of its total assets in below investment grade debt securities.
Each of the Evergreen International and Global Growth Funds may invest in high
quality money market instruments in response to adverse economic, political or
market conditions. This strategy is inconsistent with the Funds' principal
investment strategy and investment objective, and if employed could result in a
lower return and loss of market opportunity.
Risk Factors
Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 3 under the headings:
Stock Market Risk
Interest Rate Risk
Credit Risk
Emerging Markets Risk
Foreign Investment Risk
[Additional Risks associated with investments in Latin America]
Below investment grade bonds are commonly referred to as "junk bonds" because
they are usually backed by issuers of less proven or questionable financial
strength. Such issuers are more vulnerable to financial setbacks and less
certain to pay interest and principal than issuers of bonds offering lower
yields and risk. Markets may react to unfavorable news about issuers of below
investment grade bonds causing sudden and steep declines in value.
PERFORMANCE
The following charts show how the Fund has performed in the past. Past
performance is not an indication of future results.
This chart below shows the percentage gains or loss for Class A shares of the
Fund in each calendar year since the Class A shares' inception on 11/1/93. It
should give you a general idea of how the Fund's return has varied from
year-to-year. This graph includes the effects of Fund expenses, but not sales
charges. Returns would be lower if sales charges were included.
Year-by-Year Total Return for Class A Shares (%)
1993* 1994* 1995 1996 1997
7.20% -8.70% 9.75% 17.59% 25.90%
1998
Best Quarter: 2nd Quarter 1997 21.00%
Worst Quarter: 3rd Quarter 1998 27.42%
*Since inception on 11/1 /93 to 12/31/93.
This next table lists the Fund's average year-by-year return by class over the
past year or since inception (through 12/31/98), including sales charges. This
table is intended to provide you with some indication of the risks of investing
in the Fund. At the bottom of the table you can compare this performance with
the Morgan Stanley Capital International World Index (MSCIWI). MSCIWI Bond Index
is a broad market performance benchmark for equity markets throughout the world
which tracks investments similar to those of the Fund; it is not an actual
investment..
Average Annual Total Return
(for the period ended 12/31/98)
Inception Since
Date 1 year 5 year 10 year Inception
Class A 11/1/93 % N/A N/A %
Class B 11/1/93 % N/A N/A %
Class C 11/1/93
MSCIWI % % % %*
* From 11/1/93 to 12/31/98.
EXPENSES
This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.
Shareholder Fees (fees paid directly from your
investment)
Shareholder Transaction Expenses Class A Class B Class C
Maximum sales charge imposed on 4.75% None None
purchases (as a % of offering price)
Maximum deferred sales charge None(1) 5.00% 1.00%
(as a % of either the redemption
amount or initial investment whichever
is lower)
(1) Investments of $1 million or more are not subject to a front-end sales
charge, but may be subject to a contingent deferred sales charge of 1.00% upon
redemption within one year after the month of purchase.
Annual Fund Operating Expenses (expenses that are
deducted from Fund assets)
Management 12b-1 Other Total Fund
Fees Fees Expenses Operating Expenses*
Class A 0.75% 0.25% 1.07% 2.07%
Class B 0.75% 1.00% 1.07% 2.82%
Class C 0.75% 1.00% 1.07% 2.82%
*Estimated for fiscal year ending 10/31/99
The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual funds and is
for illustration only. The example assumes a 5% average annual return and that
you reinvest all of your dividends. Your actual costs may be higher or lower.
Example of Fund Expenses
Assuming Redemption at Assuming
End of Period No Redemption
Class A Class B Class C Class B Class C
After 1 year $675 $785 $385 $285 $285
After 3 years $1,093 $1,174 $874 $874 $874
After 5 years $1,536 $1,689 $1,489 $1,489 $1,489
After 10 years $2,761 $2,885 $3,147 $2,885 $3,147
Precious Metals
Fund
FUND FACTS:
Goal:
Long-term Capital Growth
Current Income
Principal Investment:
Precious Metal Common Stock
Classes of Shares Offered in This Prospectus:
Class A
Class B
Class C
Investment Advisor:
Evergreen Investment Management Company
Portfolio Manager:
John Madden
NASDAQ Symbols:
EKWAX (Class A)
EKWBX (Class B)
Dividend Payment Schedule:
Annually
INVESTMENT GOAL
The Fund seeks to provide investors with long-term capital growth and with the
protection of the purchasing power of their capital and current income and
secondarily, current income.
INVESTMENT STRATEGY
The Fund normally invests at least 80% of its assets in common stocks of
companies that are engaged in, or which receive at least 50% of their revenue
from other companies engaged in, exploration, mining, processing or dealing in
gold or other precious metals and minerals. The Fund may also invest a portion
of its assets in domestic or foreign issuers that operate in the Republic of
South Africa, which is considered to be an emerging markets country. The Fund
may also invest up to 25% of its assets in common or preferred stock of
wholly-owned subsidiaries that invest directly in precious metals and minerals.
Each of the Evergreen International and Global Growth Funds may invest in high
quality money market instruments in response to adverse economic, political or
market conditions. This strategy is inconsistent with the Funds' principal
investment strategy and investment objective, and if employed could result in a
lower return and loss of market opportunity.
RISK FACTORS
Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 3 under the headings:
Stock Market Risk
Emerging Markets Risk
Foreign Investment Risk
PERFORMANCE
The following charts show how the Fund has performed in the past. Past
performance is not an indication of future results.
The chart below shows the percentage gains or loss for Class B shares of the
Fund in each of the last ten calendar years. It should give you a general idea
of how the Fund's return has varied from year-to-year. This graph includes the
effects of Fund expenses, but not sales charges. Returns would be lower if sales
charges were included.
Year-by-Year Total Return for Class B Shares (%)
1989 1990 1991 1992 1993
24.56% -26.29 % 8.22 % -13.58 101.89 %
1994 1995 1996 1997 1998
13.34% -1.44% 2.54 % -39.50 % %
Best Quarter: 2nd Quarter 1993 35.28%
Worst Quarter: 4th Quarter 1997 29.82%
The next table lists the Fund's average year-by-year return by class over the
past one, five and ten years and since inception (through 12/31/98), including
sales charges. This table is intended to provide you with some indication of the
risks of investing in the Fund. At the bottom of the table you can compare this
performance with the S&P 500 Index. The S&P 500 Index is an unmanaged index
tracking the performance of 500 publicly-traded U.S. stocks and is often used to
indicate performance of the overall stock market. S&P 500 Index is not an actual
investment.
Average Annual Total Return
(for the period ended 12/31/98)
Inception Since
Date 1 year 5 year 10 year Inception
Class A 1/20/98 N/A N/A N/A %
Class B 1/30/78 % % % %
Class C 1/29/98 N/A N/A N/A %
S&P 500 % % % %*
* From 1/20/98 to 12/31/99.
EXPENSES
This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.
Shareholder Fees (fees paid directly from your
investment)
Shareholder Transaction Expenses Class A Class B Class C
Maximum sales charge imposed on 4.75% None None
purchases (as a % of offering price)
Maximum deferred sales charge None(1) 5.00% 1.00%
(as a % of either the redemption
amount or initial investment whichever
is lower)
(1) Investments of $1 million or more are not subject to a front-end sales
charge, but may be subject to a contingent deferred sales
charge of 1.00% upon redemption within one year after the month of purchase.
Annual Fund Operating Expenses (expenses that are
deducted from Fund assets)
Management 12b-1 Other Total Fund
Fees Fees Expenses Operating Expenses*
Class A 0.75% 0.25% 1.03% 2.03%
Class B 0.75% 1.00% 1.03% 2.78%
Class C 0.75% 1.00% 1.03% 2.78%
*Estimated for the fiscal year ending 10/31/99
The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual funds and is
for illustration only. The example assumes a 5% average annual return and that
you reinvest all of your dividends. Your actual costs may be higher or lower.
Example of Fund Expenses
Assuming Redemption at Assuming
End of Period No Redemption
Class A Class B Class C Class B Class C
After 1 year $671 $781 $381 $281 $281
After 3 years $1,081 $1,162 $862 $862 $862
After 5 years $1,516 $1,669 $1,469 $1,469 $1,469
After 10 years $2,721 $2,846 $3,109 $2,846 $3,109
THE FUNDS' INVESTMENT ADVISORS The investment advisor manages a Fund's
investments and supervises its daily business affairs. There are three
investment advisors for the Evergreen International and Global Growth Funds. All
investment advisors for the Evergreen Funds are subsidiaries of First Union
Corporation, the sixth largest bank holding company in the United States, with
over [$234] billion in consolidated assets as of 12/31/98. First Union
Corporation is located at 301 South College Street, Charlotte, North Carolina
28288-0630.
Evergreen Asset Management Corp. (EAMC)
is the investment advisor to:
Global Leaders Fund
EAMC with its predecessors, has served as investment advisor to the Evergreen
Funds since 1971, and currently manages over $10.7 billion in assets for 19 of
the Evergreen Funds. EAMC is located at 2500 Westchester Avenue, Purchase, New
York 10577.
Evergreen Investment Management Company (EIMC) is the investment advisor to:
Global Opportunities Fund
International Growth Fund
Precious Metals Fund
Latin America Fund
EIMC as been managing mutual funds and private accounts since 1932 and currently
manages over $8.5billion in assets for 26 of the Evergreen Funds. EIMC is
located at 200 Berkeley Street, Boston, Massachusetts 02116-5034.
Evergreen Investment Management of First Union National Bank (EIM) is the
investment advisor to:
Emerging Markets Growth Fund
EIM has been managing money for over 50 years and currently manages over 32.9
billion in investment assets, including 43 of the Evergreen Funds. EIM is
located at 201 South College Street, Charlotte, North Carolina
28288-0630.
Year 2000 Compliance
The investment advisors and other service providers for the Evergreen Funds are
taking steps to address any potential Year 2000-related computer problems.
However, there is some risk that these problems could disrupt the Funds'
operations or financial markets generally.
European Currency Conversion Risk Certain countries in Europe will be converting
their different currencies to a single, common currency beginning January 1,
1999. In connection with this change, investment advisors, mutual funds and
their service providers will need to modify their accounting and recordkeeping
systems to handle the new currency. Your investment in the Fund may be adversely
affected if these technical modifications are not implemented properly. Also,
the conversion to a single currency could impair the markets for securities
denominated in the currencies being eliminated, which could also adversely
impact your investment.
THE FUNDS' PORTFOLIO MANAGERS
Emerging Markets Growth Fund
The day-to-day management of the Fund is handled by
Gilman C. Gunn. Since joining First Union National
Bank (FUNB) in 1991, Mr. Gunn has been a Senior Vice
President and Chief Investment Officer-International at
EIM. Mr. Gunn has managed the Fund since 1997.
Global Leaders Fund
The day-to-day management of the Fund is handled by
Stephen A. Lieber and Edwin D. Miska. Mr. Lieber is
Chairman and Co-Chief Executive Officer of EAMC.
Mr. Miska is an analyst with EAMC. Mr. Lieber and
Mr. Miska have managed the Fund since 1995.
Global Opportunities Fund
The day-to-day management of the Fund is handled by
Gilman C. Gunn. and J. Gary Craven. Since joining
FUNB in 1991, Mr. Gunn has been a Senior Vice
President and Chief Investment Officer-International at
EIMC. Joining FUNB in 1996, Mr. Craven is currently
Senior Vice President, Portfolio Manager and Chief
Investment Office for the Small Company Stock Team for
EIMC. Prior to joining FUNB, Mr. Craven was a
Portfolio Manager at Invista Capital Management from
1987 to 1996. Mr. Gunn and Mr. Craven have managed
the Fund since 1997 and 1998, respectively.
International Growth Fund
The day-to-day management of the Fund is handled by
Gilman C. Gunn. Since joining FUNB in 1991, Mr. Gunn
has been a Senior Vice President and Chief Investment
Officer-International at EIM. Mr. Gunn has managed the
Fund since 1991.
Precious Metals Fund
The day-to-day management of the Fund is handled by
John Madden. Mr. Madden joined EIMC in 1994 as
Portfolio Manager and is currently Vice President and
Senior Portfolio Manager. Mr. Madden has managed the
Fund since 1995.
Latin America Fund
The day-to-day management of the Fund is handled by
Antonio T. Docal and Francis X. Claro. Mr . Docal and
Mr. Claro joined EIMC in 1994 and are each a Vice
President and Portfolio Manager. Mr. Docal and
Mr. Claro have co-managed the Fund since 1996.
CALCULATING THE SHARE PRICE
The value of one share, also known as the net asset value, or NAV, is calculated
on each day the New York Stock Exchange is open as of the close of the Exchange
(normally 4:00 p.m. Eastern time). We calculate the share price for each share
by adding up the total assets of the portfolio, subtracting all liabilities,
then dividing by the total number of shares outstanding. Each security held by a
Fund is valued using the most recent market quote for that security. If no
market quotation is available for a given security, we will price that security
at fair value according to policies established by the Funds' Board of Trustees.
The price per share your pay for a Fund purchase or redemption is the next price
calculated after the order is received and all required information is provided.
The value of your account at any given time is the latest share price multiplied
by the number of shares you own. Your account balance may change daily because
the share price may change daily.
HOW TO CHOOSE AN EVERGREEN FUND When choosing an Evergreen Fund, you should:
Most importantly, read the prospectus to see if the Fund is suitable for you.
Talk to an investment professional. He or she is qualified to give you
investment advice based on your investment goals and financial situation and
will be able to answer questions you may have after reading the Fund's
prospectus. He or she can also assist you through all phases of opening your
account.
Request any additional information you want about the Fund, such as the
Statement of Additional Information, Annual Report or Semi-Annual Report
by calling 1-800-343-2898.
HOW TO CHOOSE THE SHARE
CLASS THAT BEST SUITS YOU
After choosing a Fund, you select a share class. Evergreen Funds offer three
different retail share classes, each with its own sales charge. Pay particularly
close attention to this fee structure so you know how much you will be paying
before you invest.
Class A
If you select Class A shares, you may pay a front-end sales charge of up to
4.75%. This charge is deducted from your investment before it is invested. The
actual charge depends on the amount invested, as shown below:
As a % of As a % Dealer
Your NAV excluding of your commission
Investment sales charge investment as a % of NAV
Up to $49,999 4.75% 4.99% 4.25%
$50,000-$99,999 4.50% 4.71% 4.25%
$100,000-$249,999 3.75% 3.90% 3.25%
$250,000-$499,999 2.50% 2.56% 2.00%
$500,000-$999,999 2.00% 2.04% 1.75%
$1,000,000 and over 0% 0% 1.00 to .25%
Although no front-end sales charge applies to purchases of $1,000,000 and over,
you will pay a 1% deferred sales charge if you redeem any such shares within 13
months of purchase. Two ways you can reduce your Class A sales charges: 1.
Rights of Accumulation (ROA) allow you to combine your or your family membervs
investment with all existing investments in all your Evergreen Fund accounts
when determining whether you meet the threshold for a reduced Class A sales
charge. 2. Letter of Intent (LOI). If you agree to purchase at least $50,000
over a 13-month period, you pay the same sales charge as if you had invested the
full amount all at once. The Fund will hold a certain portion of your investment
in escrow until your LOI commitment is met.
Contact your investment dealer or the Evergreen Service Company at
1-800-343-2898 if you think you may qualify for either of these services.
Each Fund may also sell Class A shares at net asset value without any initial or
contingent sales charge to Directors, Trustees, officers and employees of the
Fund, EAMC, EIMC, EIM and certain of their affiliates, and to members of their
immediate families, to registered representatives of firms with dealer
agreements with Evergreen Distributor, Inc., and to a bank or trust company
acting as trustee for a single account.
Class B
If you select Class B shares, you do not pay a front-end sales charge, so the
entire amount of your purchase is invested in the Fund. However, your shares are
subject to an additional expense, known as the 12(b)-1 fee. In addition, you may
pay a deferred sales charge if you redeem your shares within six years after the
month of purchase. The amount of the deferred sales charge depends on the length
of time the shares were held, as shown below:
Time Held Contingent Deferred Sales Charge Month of Purchase + First 12
Month Period 5.00% Month of Purchase + Second 12 Month Period 4.00%
Month of Purchase + Third 12 Month Period 3.00% Month of Purchase +
Fourth 12 Month Period 3.00% Month of Purchase + Fifth 12 Month Period
2.00% Month of Purchase + Sixth 12 Month Period 1.00% Thereafter 0%
After 7 years Converts to Class A
Dealer Allowance 4.00%
The deferred sales charge percentage is applied to the value of the shares when
purchased or when redeemed, whichever is less. No deferred sales charge is paid
on shares purchased through dividend or capital gains reinvestments or on any
gains in the value of your shares.
Class C
Class C Shares are similar to B Shares, except the deferred sales charge is less
and only applies if shares are redeemed within the first year after the month of
purchase. Also, these shares do not convert to Class A shares and so the higher
12(b)-1 fee continues for the life of the account.
Time Held Deferred Sales Charge Month of Purchase plus Less than 1 year
1.00% Month of Purchase plus 1 year or more 0.00%
Waiver of Class B or Class C Sales Charges You will not be assessed a redemption
charge for Class B or Class C shares if you sell in the following situations:
When the shares were purchased through reinvestment of
dividends/capital gains
Death or disability
Lump-sum distribution from a 401(k) plan or other benefit
plan qualified under ERISA
Automatic IRA withdrawals if you are at least 59 1/2
Automatic withdrawals of up to 1.0% of the account balance
a month
Loan proceeds and financial hardship distributions from a
retirement plan
Returns of excess contributions or excess deferral amounts
made to a retirement plan participant
HOW TO BUY SHARES
Evergreen Funds' low investment minimums make investing easy. Once you decide on
an amount and a share class, simply fill out an application and send in your
payment, or talk to your investment professional.
Minimum Investments
Initial Additional
Regular Accounts $1,000 $0
IRAs $250 $0
Systematic Investment Plan $50 $25
Method
By Mail or through
an Investment Professional
Complete and sign the account application. Make the check payable to Evergreen
Funds.
Mail the application and your check to the address below:
Evergreen Service Company
P.O. Box 2121
Boston, MA 02106-2121
Overnight Address:
Evergreen Service Company
200 Berkeley St.
Boston, MA 02116
Or deliver them to your investment representative (provided he or she has a
broker-dealer arrangement with Evergreen Distributor, Inc.)
Adding to an Account
Make your check payable to Evergreen Funds Write a note specifying: the Fund
name share class your account number the name(s) in which the account is
registered
Mail to the address below or deliver to your investment
representative
By Phone
Call 1-800-343-2898 to set up an account number and get wiring instructions
(call before 12 noon if you want wired funds to be credited that day).
Instruct your bank to wire or transfer your purchase (they may charge a wiring
fee).
Complete the account application and mail to:
Evergreen Service Company Overnight Address:
P.O. Box 2121 Evergreen Service
Boston, MA 02106-2121 Company
200 Berkeley St.
Boston, MA 02116
Wires received after 4:00 p.m. Eastern time on market trading days will receive
the next market day's closing price.
Call the Evergreen Express Line at 1-800-346-3858 24 hours a
day or 1-800-343-2898 between 8 a.m. and 6 p.m. Eastern
time, on any business day.
If your bank account is set up on file, you can request either: Federal Funds
Wire (offers immediate access to funds) or Electronic transfer through the
Automated Clearing House
which avoids wiring fees.
By Exchange
You can make an additional investment by exchange from an existing Evergreen
Fund's account by contacting your investment representative or calling the
Evergreen Express Line at 1-800-346-3858.*
You can only exchange shares in the same class.
There is no sales charge or redemption fee when exchanging
funds within the Evergreen Funds family.
Orders placed before 4 p.m. Eastern time on market trading
days will receive that day's closing share price (if not, you will receive the
next market day's closing price).
Exchanges are limited to three per calendar quarter, and five per calendar
year.
Exchanges between accounts that do not have identical ownership must be in
writing with a signature guarantee (see below).
Systematic
Investment Plan (SIP)
You can transfer money automatically from your bank account into your Fund on a
monthly basis.
Initial investment minimum is $50 if you invest at least $25 per month with
this service.
To enroll, check off the box on the account application and provide:
your bank account information
the amount and date of your monthly investment
To establish automatic investing for an existing account, call 1- 800-343-2898
for an application.
The minimum is $25 per month or $75 per quarter.
You can also establish an investing program through direct
deposit from your paycheck. Call 1-800-343-2898 for details. * Once you have
authorized either the telephone exchange or redemption service, anyone with a
Personal Identification Number (PIN) and the required account information
(including your broker) can request a telephone transaction in your account. All
calls are recorded or monitored for verification, recordkeeping and
quality-assurance purposes. The Evergreen Funds reserve the right to terminate
the exchange privilege of any shareholder who exceeds the listed maximum number
of exchanges, as well as to reject any large dollar exchange if placing it
would, in the judgment of the portfolio manager, adversely affect the price of
the Fund.
HOW TO REDEEM SHARES
We offer you several convenient ways to sell your shares in any of the Evergreen
Funds:
Methods
Call Us
Requirements
Call the Evergreen Express Line at 1-800-346-3858 24 hours a
day or 1-800-343-2898 between 8 a.m. and 6 p.m. Eastern
time, on any business day.
This service must be authorized ahead of time, and is only
available for regular accounts.*
All authorized requests made before 4 p.m. Eastern time on market trading days
will be processed at that day's closing price. Requests after 4 p.m. will be
processed the following business day.
We can either:
wire the proceeds into your bank account (service charges
may apply)
electronically transmit the proceeds to your bank account via
the Automated Clearing House service
mail you a check.
All telephone calls are recorded for your protection. We are not responsible
for acting on telephone orders we believe are genuine.
See exceptions list below for requests that must be made in writing.
Write Us
You can mail a redemption request to:
Evergreen Service Company Overnight Address:
P.O. Box 2121 Evergreen Service
Boston, MA 02106-2121 Company
200 Berkeley St.
Boston, MA 02116
Your letter of instructions must:
list the Fund name and the account number
indicate the number of shares or dollar value you wish to
redeem
be signed by the registered owner(s)
See exceptions list below for requests that must be signature guaranteed.
To redeem from an IRA or other retirement account, call 1-800- 346-3858 for a
special application.
Sell Your Shares in Person
You may also redeem your shares through participating broker-dealers by
delivering a letter as described above to your broker-dealer.
A fee may be charged for this service.
Systematic
Withdrawal
Plan (SWP)
You can transfer money automatically from your Fund on a monthly or quarterly
basis without redemption fees.
The withdrawal can be mailed to you, or deposited directly to your bank
account.
The minimum is $75 per month
The maximum is 1% of your account per month or 3% per
quarter
To enroll, call 1-800-343-2898 for an application.
Timing of Proceeds
Normally, we will send your redemption proceeds on the next business day after
we receive your request; however, we reserve the right to wait up to seven
business days to redeem any investments made by check and five business days for
investments made by Automated Clearing House transfer.
We also reserve the right to redeem in kind by paying you the proceeds of a
redemption in securities rather than in cash, and to redeem the remaining amount
in the account if your redemption brings the account balance below the initial
minimum of $1,000.
Exceptions: Redemption Requests That Require A Signature Guarantee To protect
you and Evergreen Funds against fraud, certain redemption requests must be in
writing with your signature guaranteed. A signature guarantee can be obtained at
most banks and securities dealers. A notary public is not authorized to provide
a signature guarantee. The following circumstances require signature guarantees:
You are redeeming more than $50,000
You want the proceeds transmitted to a bank account not listed
on the account
You want the proceeds payable to anyone other than the
registered owner(s) of the account
Either your address or the address of your bank account has been changed within
30 days
The account is registered in the name of a fiduciary corporation
or any other organization.
In these cases, additional documentation is required:
corporate accounts: certified copy of corporate resolution
fiduciary accounts: copy of the power of attorney or other
governing document
Who Can Provide A Signature Guarantee:
Commercial Bank
Trust Company
Savings Association
Credit Union
Member of a U.S. stock exchange
OTHER SERVICES
Evergreen Express Line
Use our automated, 24-hour service to check the value of your investment in a
Fund; purchase, redeem or exchange Fund shares; find a Fund's price, yield or
total return; order a statement or duplicate tax form; or hear market commentary
from Evergreen portfolio managers.
Automatic Reinvestment of Dividends
For the convenience of investors, all dividends and capital gains distributions
are automatically reinvested, unless you request otherwise. Distributions can be
made by check or electronic transfer through the Automated Clearing House to
your bank account. The details of your dividends and other distributions will be
included on your statement.
Payroll Deduction
If you want to invest automatically through your paycheck, call us to find out
how you can set up direct payroll deductions. The amounts deducted will be
invested in your Fund using the Electronic Funds Transfer System. We will
provide the Fund account number. Your payroll department will let you know the
date of the pay period when your investment begins.
Telephone Investment Plan
You may make additional investments electronically in an existing Fund account
at amounts of not less than $100 or more than $10,000 per investment. Telephone
requests received by 4:00 p.m. Eastern time will be invested the day the request
is received.
Dividend Exchange
You may elect on the application to reinvest capital gains and/or dividends
earned in one Evergreen Fund into an existing account in another Evergreen Fund
in the same share class - automatically. Please indicate on the application the
Evergreen Fund(s) into which you want to invest the distributions.
Reinvestment Privileges
Under certain circumstances, shareholders may, within one year of redemption,
reinstate their accounts at the current price (NAV).
THE TAX CONSEQUENCES OF INVESTING IN THE FUND You may be taxed in two ways:
On Fund distributions (capital gains and dividends)
On any profit you make when you sell any or all of
your shares.
Fund Distributions
A mutual fund passes along to all of its shareholders the net income or profits
it receives from its investments. The shareholders of the Fund then pay any
taxes due, whether they receive these distributions in cash or elect to have
them reinvested. The Funds may also distribute two types of taxable income to
you:
Dividends. The Fund pays a yearly dividend from the dividends, interest and
other income on the securities in which it invests. The frequency of dividends
for the Evergreen International and Global Growth Funds is listed under the
Fund's Investment Strategy section in the summary of each Fund previously
presented.
Capital Gains. When a mutual fund sells a security it owns for a profit, the
result is a capital gain. Evergreen International and Global Growth Funds
generally distribute capital gains at least once a year, near the end of the
calendar year. Short-term capital gains reflect securities held by the Fund for
a year or less and are considered ordinary income just like dividends. Profits
on securities held longer than 12 months are considered long-term capital gains
and are taxed at a special tax rate (20% for most taxpayers, on sales made after
January 1, 1998).
Dividend and Capital Gain Reinvestment Unless you choose otherwise on the
account application, all dividend and capital gain payments will be reinvested
to buy additional shares. Distribution checks that are returned and distribution
checks that are uncashed when the shareholder has failed to respond to mailings
from the shareholder servicing agent will automatically be reinvested to buy
additional shares. No interest will accrue on amounts represented by uncashed
distribution or redemption checks.
We will send you a statement each January with the federal tax status of
dividends and distributions paid by each Fund during the previous calendar year.
Profits You Realize When You Redeem Shares When you sell shares in a mutual
fund, whether by redeeming or exchanging, you have created a taxable event. You
must report any gain or loss on your tax return unless the transaction entered
into was a tax-deferred retirement plan or occurred in a money market fund. It
is your responsibility to keep accurate records of your mutual fund
transactions. You will need this information when you file your income tax
return, since you must report any capital gains or losses you incur when you
sell shares. Remember, an exchange is a purchase and a sale for tax purposes.
Tax Reporting
Evergreen Service Company provides you with a tax statement of your dividend and
capital gains distributions for each calendar year on Form 1099 DIV. Proceeds
from a sale are reported on Form 1099B. You must report these on your tax
return. Since the IRS receives a copy as well, you could pay a penalty if you
neglect to report them.
Evergreen Service Company will send you a tax information guide each year during
tax season, which may include a cost basis statement detailing the gain or loss
on taxable transactions you had during the year. Please consult your own tax
advisor for further information regarding the federal, state and local tax
consequences of an investment in the Funds.
Retirement Plans
You may invest in each Fund through various retirement plans, including IRAs,
401(k) plans, Simplified Employee Plan (SEP) IRAs, 403(b) plans, 457 plans and
others. For special rules concerning these plans, including applications,
restrictions, tax advantages, and potential sales charge waivers, contact your
broker-dealer. To determine if a particular retirement plan may be appropriate
for you, consult your tax advisor.
FEES AND EXPENSES OF THE FUND
Every mutual fund has fees and expenses that are assessed either directly or
indirectly. This section describes each of those fees.
Management Fee
The management fee pays for the normal expenses of managing the fund, including
portfolio manager salaries, research costs, investment advisory fees and related
expenses.
12b-1 Fee
The Trustees of the Evergreen Funds have approved a policy to assess 12b-1 fees
for Class A, Class B and Class C shares. These fees increase the cost of your
investment. The purpose of the 12b-1 fee is to promote the sale of more shares
of the Funds to the public. The Fund might use this fee for advertising and
marketing and as a "service fee" to the broker-dealer for additional shareholder
services.
Other Expenses
Other expenses include miscellaneous fees from outside service providers. These
may include legal, audit, custodial and safekeeping fees, the printing and
mailing of reports and statements, automatic reinvestment of distributions and
other conveniences for which the shareholder pays no transaction fees.
Total Fund Operating Expenses
The total cost of running the Fund is called the expense ratio. As a
shareholder, you are not charged these fees directly; instead they are taken out
before the Fund's price is calculated, and are expressed as a percentage of the
Fund's net assets. The effect of these fees is reflected in the performance
results for that share class. Because these fees are "invisible," investors
should examine them closely in the prospectus, especially when comparing one
fund with another fund in the same investment category. There are two things to
remember about expense ratios: 1) your total return in the Fund is reduced in
direct proportion to the fees; and 2) expense ratios can vary greatly between
funds and fund families, from under 0.25% to over 3%.
FINANCIAL HIGHLIGHTS
This section looks in detail at the results for one share in each share class of
the Funds - how much income it earned, how much of this income was passed along
as a distribution and how much the return was reduced by expenses. The tables
for Global Opportunities Fund, International Growth Fund, Precious Metals Fund
and Latin America Fund have been audited by [ ], the Funds' independent
accountants. The tables for Emerging Markets Fund and Global Leaders Fund have
been audited by [ ], the Fund's independent accountants. For a more complete
picture of the Funds' financials, please see the Funds' Annual Report as well as
the Statement of Additional Information.
FINANCIAL HIGHLIGHTS WILL GO HERE:
- --------------------------------------------------------------------------------
EVERGREEN
Emerging Markets Growth Fund
- --------------------------------------------------------------------------------
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
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.
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Emerging Markets Growth Fund
- --------------------------------------------------------------------------------
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>
* 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>
<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>
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Global Opportunities Fund
- --------------------------------------------------------------------------------
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.
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
Global Opportunities Fund
- --------------------------------------------------------------------------------
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>
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
International Growth 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 $ 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 fiscal
year end from September 30 to October 31, effective October 31, 1994.
See Combined Notes to Financial Statements.
<PAGE>
- --------------------------------------------------------------------------------
EVERGREEN
International Growth 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 $ 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>
<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.
<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>
<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.
<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.
OTHER FUND PRACTICES
The Funds may invest in futures and options and foreign currencies. Such
practices are used to hedge a Fund's portfolio. Although this is intended to
increase returns, these practices may actually reduce returns or increase
volatility.
The Funds may also invest in other investment companies. This practice may
expose a Fund to duplicate expenses and lower its value.
In addition, the Funds may borrow money and lend their securities. Borrowing is
a form of leverage that may magnify a Fund's gain or loss. Lending securities
may cause the Fund to lose the opportunity to sell these securities at the most
desirable price and, therefore, lose money.
[Payment-in-kind securities issued by public or private
issuers]
[ARPSs]
Please consult the Statement of Additional Information for more information
regarding these and other investment practices used by the Funds, including
risks.
Notes
Evergreen Funds
Money Market
Treasury Money Market Fund
Money Market Fund
Municipal Money Market Fund
Pennsylvania Municipal Money Market Fund
Florida Municipal Money Market Fund
New Jersey 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 High Income Municipal Bond Fund
Florida 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
Strategic Growth Fund
Stock Selector Fund
Evergreen Fund
Omega Fund
Small Company Growth Fund
Aggressive Growth Fund
Micro Cap Fund
Tax Strategic Equity 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
Evergreen Express Line
Call 1-800-346-3858
24 hours a day to
check your account
order a statement
get a Fund's current price, yield and
total return
buy, redeem or exchange Fund shares
Non-retirement account holders
Call 1-800-343-2898
Monday through Friday, 8 a.m. to 6 p.m. Eastern
time to
buy, redeem or exchange shares
order applications
get assistance with your account
Retirement plan account holders
Call 1-800-247-4075
Monday through Friday, 8 a.m. to 6 p.m. Eastern
time
Information Line for Hearing and Speech Impaired
(TTY/TDD)
Call 1-800-343-2888
Monday through Friday, 8 a.m. to 6 p.m. Eastern
time
Write us a letter
Evergreen Service Company
P.O. Box 2121
Boston, MA 02106-2121
to buy, redeem or exchange shares
to change the registration on your account
for general correspondence
For express, registered, certified mail:
Evergreen Service Company
200 Berkeley Street
Boston, MA 02116-5039
Contact us on-line:
www.evergreen-funds.com
Regular communications you'll receive: Account Statements - You'll receive
quarterly statements for each Fund you own. Confirmation Notices - We send a
confirmation of any transaction you make within five days of the
transaction.
Annual and Semiannual reports - You'll receive a detailed financial report on
your Fund(s) twice a year. Tax Forms - Each January you'll receive any tax forms
you need to file your taxes as well as the Evergreen Tax Information Guide.
Evergreen Events - You'll receive a periodic newsletter published exclusively
for Evergreen shareholders.
For More Information About the Evergreen International and Global Growth Funds,
Ask for:
The Funds' most recent Annual or Semi-Annual Report, which contains a complete
financial accounting for each Fund
and a complete list of the Fund's holdings as of a specific date, as well as
commentary from the portfolio manager. This Report discusses the market
conditions and investment strategies that significantly affected the Fund's
performance during the most recent fiscal year or period.
The Statement of Additional Information (SAI), which contains more detailed
information about the policies and
procedures of the Funds. The SAI has been filed with the Securities and
Exchange Commission ("SEC") and its
contents are legally considered to be part of this prospectus.
For questions, other information, or to request a copy, without charge,
of any of the documents, call 1-800-343-2898 or
ask your investment representative. We will mail material within three
business days.
Information about these Funds (including the SAI) is also available on the SEC's
Internet web site at http://www.sec.gov,
or, for a duplication fee, by writing the SEC Public Reference Section,
Washington DC 20549-6009. This material can
also be reviewed and copied at the SEC's Public Reference Room in Washington,
DC. For more information, call the
Commission at 1-800-SEC-0330.
[LOGO OF EVERGREEN FUNDS APPEARS HERE]
Evergreen Distributor, Inc.
125 W. 55th Street
New York, New York 10019
[#] [811- ]
18
15
EVERGREEN
INTERNATIONAL
AND
GLOBAL
GROWTH
Funds
Evergreen Emerging Markets Growth Fund
Evergreen Global Leaders Fund
Evergreen Global Opportunities Fund
Evergreen International Growth Fund
Evergreen Latin America Fund
Class Y
Prospectus, March 1, 1999
The Securities and Exchange Commission has not determined that the information
in this prospectus is accurate or complete, nor has it approved or disapproved
of these mutual fund shares. Anyone who tells you otherwise is committing a
federal crime.
FUND SUMMARIES:
Evergreen Emerging Markets Growth Fund 4
Evergreen Global Leaders Fund 6
Evergreen Global Opportunities 8
Evergreen International Growth Fund 10
Evergreen Latin America Fund 14
GENERAL INFORMATION: The Funds' Investment Advisors 18 The Funds' Portfolio
Managers 18 Calculating the Share Price 18 How to Choose an Evergreen Fund 18
Who Can Buy Class Y Shares How to Buy Shares 19 How to Redeem Shares 20 Other
Services 21 The Tax Consequences of Investing in the Funds 22 Expenses 23
Financial Highlights 24 Other Fund Practices 32
In general, Funds included in this prospectus seek to provide investors with a
selection of investment alternatives which seek to provide capital growth and
diversification. The Funds invest a significant portion of their assets in
securities of issuers located outside the United States and Evergreen Global
Leaders Fund and Evergreen Global Opportunities Fund also include securities of
issuers located within the United States in their portfolio.
Fund Summaries Key
Each Fund's summary is organized around the following basic topics and
questions:
INVESTMENT GOAL
What is the Fund's financial objective? You can find clarification on how the
Fund seeks to achieve its objective by looking at the Fund's strategy and
investment policies. The Fund's Board of Trustees can change the investment
objective without a shareholder vote.
INVESTMENT STRATEGY
How does the Fund go about trying to meet its goals? What types of investments
does it contain? What style of investing and investment philosophy does it
follow? Does it have limits on the amount invested in any particular type of
security?
RISK FACTORS
What are the specific risks for an investor in the Fund?
PERFORMANCE
How well has the Fund performed in the past year? The past five years? The past
ten years?
EXPENSES
How much does it cost to invest in the Fund?
International
and Global
Growth Funds
typically rely on one or a combination of the following
strategies:
investing primarily in equity securities of foreign countries
with developed and/or emerging markets;
investing a portion of assets in debt securities; and
investing in a combination of countries which includes the
United States and foreign markets may be appropriate for investors who:
want a selection of investment alternatives;
seek capital growth and diversification; and
are more aggressive and are interested in investment
opportunities found in the more volatile climate of international or emerging
markets. Following this overview, you will find information on each
International and Global Growth Fund's specific strategies and risks. Risk
Factors For All Mutual Funds Please remember that mutual fund shares are:
not guaranteed to achieve their investment goal
not insured, endorsed or guaranteed by the FDIC, a bank or
any government agency
subject to investment risks, including possible loss of your original
investment Like most investments, your investment in an Evergreen International
and Global Growth Fund could fluctuate significantly in value over time and
could result in a loss of
money.
Here are the most important factors that may affect the value of your
investment:
Stock Market Risk
Your investment will be affected by general economic conditions such as
prevailing economic growth, inflation and interest rates. When economic growth
slows, or interest or inflation rates increase, equity securities tend to
decline in value. Such events also could cause companies to decrease the
dividends they pay. If these events were to occur, the value of and dividend
yield and total return earned on your investment would likely decline. Even if
general economic conditions do not change, the value of and dividend yield and
total return earned on your investment would decline if the particular
industries, companies or sectors your Fund invests in did not perform well.
Interest Rate Risk
When interest rates go up, the value of debt securities tends to fall. If your
Fund invests a significant portion of its portfolio in debt securities or
dividend paying stocks and if interest rates rise, then the value of and total
return earned on your investment may decline. When interest rates go down,
interest earned by your Fund on its debt investment may also decline, which
could cause the Fund to reduce the dividends it pays.
Credit Risk
The value of a debt security is directly affected by the issuer's ability to
repay principal and interest on time. If your Fund invests in debt securities,
then the value of and total return on your investment may be decline if an
issuer fails to pay an obligation on a timely basis.
Emerging Markets Risk
An "emerging market" is any country considered to be emerging or developing, has
a relatively low gross national product, but the potential for rapid growth
(which can lead to instability). Investing in securities of emerging countries
has a diversity of risk. Emerging countries are generally small and rely heavily
on international trade and could be adversely effected by the economic
conditions in the countries with which they trade. There is also a possibility
of a change in the political climate, nationalization, diplomatic developments
(including war), and social instability. Such countries may experience high
levels of inflation or deflation and currency devaluation. Investments in
emerging markets are considered to be speculative.
Foreign Investment Risk
A Fund's investment in non-U.S. securities could expose it to certain unique
risks of foreign investing. For example, political turmoil and economic
instability in the countries in which the Fund invests could adversely affect
the value of your investment. In addition, if the value of any foreign currency
in which the Fund's investments are denominated declines relative to the U.S.
dollar, the value and total return of your investment in the Fund may decline as
well. Certain foreign countries have less developed and less regulated
securities markets and accounting systems that the U.S. This may make it harder
to get accurate information about a security or company, and increase the
likelihood that an investment will not perform as well as expected.
Emerging Markets
Growth Fund
FUND FACTS:
Goal:
Long-term capital appreciation
Principal Investment:
Emerging Markets equity securities
Class of Shares Offered in This Prospectus:
Class Y
Investment Advisor:
Evergreen Investment Management Company
Portfolio Manager:
Gilman C. Gunn
NASDAQ Symbols
EMGAX (Class Y)
Dividend Payment Schedule:
Annually
INVESTMENT GOAL
The Fund seeks to provide investors with long-term capital appreciation.
INVESTMENT STRATEGY
The Fund invests at least 65% of its assets in equity securities of issuers
located in emerging markets. The Fund may also invest in other types of
instruments, including invstment-grade debt securities.
Each of the Evergreen International and Global Growth Funds may invest in high
quality money market instruments in response to adverse economic, political or
market conditions. This strategy is inconsistent with the Funds' principal
investment strategy and investment objective, and if employed could result in a
lower return and loss of market opportunity.
Risk Factors
Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 3 under the headings:
Stock Market Risk
Interest Rate Risk
Credit Risk
Emerging Markets Risk
Foreign Investment Risk
PERFORMANCE
The following charts show how the Fund has performed in the past. Past
performance is not an indication of future results.
The chart below shows the percentage gains or loss for Class Y shares of the
Fund in each calendar year since the Class Y shares' inception on 9/6/94. It
should give you a general idea of how the Fund's return has varied from
year-to-year. This graph includes the effects of Fund expenses.
Year-by-Year Total Return for Class Y Shares (%)
1994* 1995 1996 1997 1998
- -18.30% 2.29% 10.37% 13.74% %
Best Quarter: 2nd Quarter 1997 14.72%
Worst Quarter: 3rd Quarter 1998 -15.60%
*Since inception on 9/6/94 to 12/31/94.
The next table lists the Fund's average year-by-year return for Class Y shares
over the past year and since inception (through 12/31/98). This table is
intended to provide you with some indication of the risks of investing in the
Fund. At the bottom of the table you can compare this performance with the
Morgan Stanley Emerging Markets Index ("MSEMI"). MSEMI is a broad market
performance benchmark for emerging markets throughout the world which tracks
investments similar to the Fund's; it is not an actual investment.
Average Annual Total Return
(for the period ended 12/31/98)
Inception Since
Date 1 year 5 year 10 year Inception
Class Y 9/6/94 % N/A N/A %
MSEMI % N/A N/A %*
*From 9/6/94 to 12/31/98
EXPENSES
This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.
Shareholder Fees (fees paid directly from your
investment)
Shareholder Transaction Expenses Class Y
Maximum sales charge imposed on None
purchases (as a % of offering price)
Maximum deferred sales charge None (as a % of either the redemption amount or
initial investment whichever is lower)
Annual Fund Operating Expenses (expenses that are
deducted from Fund assets)
Management Other Total Fund
Fees Expenses Operating Expenses*
Class Y 1.50% .49% 1.99%
*Estimated for the fiscal year ending 10/31/99
The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual funds and is
for illustration only. The example assumes a 5% average annual return and that
you reinvest all of your dividends. Your actual costs may be higher or lower.
Example of Fund Expenses
After 1 year $202 After 3 years $624 After 5 years $1,073
After 10 years $2,317
Global Leaders
Fund
FUND FACTS:
Goal:
Long-term capital growth
Principal Investment:
U.S. and non-U.S. Equity Securities
Class of Shares Offered in This Prospectus:
Class Y
Investment Advisor:
Evergreen Asset Management Company
Portfolio Manager:
Stephen A. Lieber
Edwin Miska
NASDAQ Symbols:
EAGLX (Class Y)
Dividend Payment Schedule:
Annually
INVESTMENT GOAL
The Fund seeks to provide investors with long-term capital growth.
INVESTMENT STRATEGY
The Fund normally invests at least 65% of its assets in a diversified portfolio
of U.S. and non-U.S. equity securities of companies located in the world's major
industrialized countries. The Fund will make investments in no less than three
countries, which may include the United States, but may invest more than 25% of
its total assets in one country. The Fund's investment advisor will screen the
largest companies in major industrialized countries and based on certain
qualitative and quantitive criteria (which includes those companies with the
highest return on equity and consistent earnings growth), and in the opinion of
the advisor, will invest only in the best 100.
Each of the Evergreen International and Global Growth Funds may invest in high
quality money market instruments in response to adverse economic, political or
market conditions. This strategy is inconsistent with the Funds' principal
investment strategy and investment objective, and if employed could result in a
lower return and loss of market opportunity.
Risk Factors
Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 3 under the headings:
Stock Market Risk
Interest Rate Risk
Credit Risk
Foreign Investment Risk
In addition, if more than 25% of the Fund's total assets is invested in one
country, the value of the Fund's shares may be subject to greater fluctuation
due to the lesser degree of diversification across countries and the fact that
the securities markets of certain countries may be subject to greater risks and
volatility than that which exists in the United States.
Performance
The following charts show how the Fund has performed
in the past. Past performance is not an indication of
future results
The chart below shows the percentage gain or loss for Class Y shares of the Fund
in each calendar year since the Class Y shares' inception on 11/1/95. It should
give you a general idea of how the Fund's return has varied from year-to-year.
This graph includes the effects of Fund expenses.
Year-by-Year Total Return for Class Y Shares (%)
1995* 1996 1997 1998
3.41% 19.33% 13.66% %
Best Quarter: 1st Quarter 1998 14.75%
Worst Quarter: 3rd Quarter 1998 -13.51%
*Since inception on 11/1/95 to 12/31/96
This next table lists the Fund's average year-by-year return for Class Y shares
over the past year or since inception (through 12/31/98). This table is intended
to provide you with some indication of the risks of investing in the Fund. At
the bottom of the table you can compare this performance with the Morgan Stanley
Capital International World Index (MSCIW). The MSCIWI is a broad market
performance benchmark for equity markets throughout the; it is not an actual
investment..
Average Annual Total Return
(for the period ended 12/31/98)
Inception Since
Date 1 year 5 year 10 year Inception
Class Y 11/1/95 % N/A N/A %
MSCIWI % N/A N/A %*
*From 11/1/95 to 12/31/98
EXPENSES
This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.
Shareholder Fees (fees paid directly from your
investment)
Shareholder Transaction Expenses Class Y
Maximum sales charge imposed on None
purchases (as a % of offering price)
Maximum deferred sales charge None (as a % of either the redemption amount or
initial investment whichever is lower)
Annual Fund Operating Expenses (expenses that are
deducted from Fund assets)
Management Other Total Fund
Fees Expenses Operating Expenses*
Class Y .95% .58% 1.53%
*Estimated for the fiscal year ending 10/31/99
The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual funds and is
for illustration only. The example assumes a 5% average annual return and that
you reinvest all of your dividends. Your actual costs may be higher or lower.
Example of Fund Expenses
After 1 year $156 After 3 years $483 After 5 years $834
After 10 years $1,824
Global
Opportunities Fund
FUND FACTS:
Goal:
Capital Growth
Principal Investment:
Equity securities of U.S. and non-U.S. companies
Class of Shares Offered in This Prospectus:
Class Y
Investment Advisor:
Evergreen Investment Management Company
Portfolio Managers:
Gilman C. Gunn
J. Gary Craven
NASDAQ Symbols:
EKGAX (Class Y)
Dividend Payment Schedule
Annually
INVESTMENT GOAL The Fund seeks capital growth.
INVESTMENT STRATEGY
The Fund normally invests at least 65% of its assets in equity securities of
issuers located in at least three countries, one of which may be the U.S. The
Fund may also invest in emerging markets. When investing in securities of
issuers in the U.S. and other countries with developed securities markets, the
Fund invests in equity securities of small to medium sized companies that are in
a relatively early stage of development. When investing in foreign securities,
the Fund invests in equity securities of issuers that are well managed and
positioned to achieve above-average increases in revenue and earnings and strong
prospects for continued revenue growth. Although the Fund intends to invest in
common stock and convertible securities, it may also invest in debt securities
of the U.S., any foreign government and international agency as well as hold
cash and cash equivalents. The primary investment criterion used by the Fund in
the selection of portfolio securities is that the securities provide
opportunities for capital growth.
Each of the Evergreen International and Global Growth Funds may invest in high
quality money market instruments in response to adverse economic, political or
market conditions. This strategy is inconsistent with the Funds' principal
investment strategy and investment objective, and if employed could result in a
lower return and loss of market opportunity.
RISK FACTORS
Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 3 under the headings:
Stock Market Risk
Interest Rate Risk
Credit Risk
Emerging Markets Risk
Foreign Investment Risk
PERFORMANCE
The following charts show how the Fund has performed in the past. Past
performance is not an indication of future results.
The chart below shows the percentage gains or loss for Class Y shares of the
Fund in each of the last ten calendar years. This graph includes the effects of
Fund expenses.
Year-by-Year Total Return for Class Y Shares(%)*
1989 1990 1991 1992 1993 1994
10.81 -7.17 31.66 11.44 37.71 2.71
1995 1996 1997 1998
23.66 3.56 3.06
Best Quarter: 1st Quarter 1998 14.40%
Worst Quarter: 3rd Quarter 1998 -23.49%
*Historical performance for Class Y prior to inception reflects that of Class A,
the original class offered, the inception of which is 11/1/95, and does
not include 12b-1 fees for Class A. If such fees were reflected, returns would
have been higher. Performance includes the reinvestment of income dividends and
capital gain distributions.
The next table lists the Fund's average year-by-year return by class over the
past year and since inception (through 12/31/98). This table is intended to
provide you with some indication of the risks of investing in the Fund. At the
bottom of the table you can compare this performance with the Morgan Stanley
Capital International World Index (MSCIWI). MSCIWI Bond Index is a broad market
performance benchmark for equity markets throughout the world; it is not an
actual investment.
Average Annual Total Return
(for the period ended 12/31/98)
Inception Since
Date 1 year 5 year 10 year Inception
Class A 1/13/97 % N/A N/A %
MSCIWI % % % %*
*From 1/13/97 to 12/31/98
EXPENSES
This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.
Shareholder Fees (fees paid directly from your
investment)
Shareholder Transaction Expenses Class Y
Maximum sales charge imposed on None
purchases (as a % of offering price)
Maximum deferred sales charge None (as a % of either the redemption amount or
initial investment whichever is lower)
Annual Fund Operating Expenses (expenses that are
deducted from Fund assets)
Management Other Total Fund
Fees Expenses Operating Expenses*
Class Y .99% .65% 1.64%
*Estimated for the fiscal year ending 10/31/99
The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual funds and is
for illustration only. The example assumes a 5% average annual return and that
you reinvest all of your dividends. Your actual costs may be higher or lower.
Example of Fund Expenses
After 1 year $167 After 3 years $517 After 5 years $892
After 10 years $1,944
International
Growth Fund
FUND FACTS:
Goal:
Long-term Capital Growth
Modest income
Principal Investment:
Equity securities of non-U.S. companies in developed
countries
Class of Shares Offered in This Prospectus:
Class Y
Investment Advisor:
Evergreen Investment Management Company
Portfolio Manager:
Gilman C. Gunn
NASDAQ Symbols:
EKZAX (Class Y)
Dividend Payment Schedule:
Annually
INVESTMENT GOAL
The Fund seeks long-term growth of capital and secondarily, modest income.
INVESTMENT STRATEGY
The Fund invests primarily in equity securities issued by established, non-U.S.
quality companies located in countries with developed markets. The Fund may also
invest in emerging markets and in securities of companies in the formerly
communist countries of Eastern Europe. The Fund invests at least 65% of its
total assets in the securities of companies in at least three different
countries (other than the U.S.). The Fund may also invest in debt securities,
including up to 10% of its assets in below investment grade debt securities.
Each of the Evergreen International and Global Growth Funds may invest in high
quality money market instruments in response to adverse economic, political or
market conditions. This strategy is inconsistent with the Funds' principal
investment strategy and investment objective, and if employed could result in a
lower return and loss of market opportunity.
RISK FACTORS
Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 3 under the headings:
Stock Market Risk
Interest Rate Risk
Credit Risk
Emerging Markets Risk
Foreign Investment Risk
In addition, you may lose money in the Fund due to investments in below
investment grade securities. The Fund can invest up to 10% of its total assets
in securities rated BB or below by Standard & Poor's Ratings Service or Ba or
lower by Moody's Investor Service. Securities rated below investment grade are
commonly known as "junk bonds" because they're usually backed by issuers of less
proven or questionable financial strength. Such issuers are more vulnerable to
financial setbacks and less certain to pay interest and principal than issuers
of bonds offering lower yields and risks. Markets may react to unfavorable news
about issuers of below investment grade bonds causing sudden and steep declines
in value.
PERFORMANCE
The total return for Class Y shares since inception on 1/9/98 to 12/31/98 is [
]%. This figure includes the effects of fund expenses. Past performance is not
an indication of future results.
The chart below shows the percentage gains or loss for
Class Y shares of the Fund in each of the last ten calendar years. It should
give you general idea of how the Fund's return has varied from year to year.
This graph includes the effects of Fund expenses.
Year-by-Year Total Return for Class Y Shares(%)*
1989 1990 1991 1992 1993 1994
5.59 -23.01 15.67 3.66 31.77 -5.26
1995 1996 1997 1998
12.57 14.79 11.95
Best Quarter: 1st Quarter 1998 18.55%
Worst Quarter: 3rd Quarter 1990 -18.06%
*Historical performance for Class Y prior to inception reflects that of Class B,
the original class offered, the inception of which is 11/1/95, and does not
include 12b-1 fees for Class B. If such fees were reflected, returns would have
been higher. Performance includes the reinvestment of income dividends and
capital gain distributions.
EXPENSES
This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.
Shareholder Fees (fees paid directly from your
investment)
Shareholder Transaction Expenses Class Y
Maximum sales charge imposed on None
purchases (as a % of offering price)
Maximum deferred sales charge None (as a % of either the redemption amount or
initial investment whichever is lower)
Annual Fund Operating Expenses (expenses that are
deducted from Fund assets)
Management Other Total Fund
Fees Expenses Operating Expenses*
Class Y .64% .33% .97%
*Estimated for the fiscal year ending 10/31/99
The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual funds and is
for illustration only. The example assumes a 5% average annual return and that
you reinvest all of your dividends. Your actual costs may be higher or lower.
Example of Fund Expenses
After 1 year $99 After 3 years $309 After 5 years $536
After 10 years $1,190
Latin America
Fund
FUND FACTS:
Goal:
Long-term Capital Growth
Principal Investment:
Latin American Equity Securities
Class of Shares Offered in This Prospectus:
Class Y
Investment Advisor:
Evergreen Investment Management Company
Portfolio Manager:
Antonio Docal
Franccis X. Claro
NASDAQ Symbols:
EKLAX (Class Y)
Dividend Payment Schedule:
Annually
INVESTMENT GOAL
The Fund seeks long-term growth of capital through investments in equity
securities of Latin America.
INVESTMENT STRATEGY
The Fund normally invests at least 65% of its assets in securities of issuers in
Latin America and ordinarily maintains investments in at least three Latin
American countries. The Fund may also invest in debt securities, and up to 49%
of its total assets in below investment grade debt securities.
Each of the Evergreen International and Global Growth Funds may invest in high
quality money market instruments in response to adverse economic, political or
market conditions. This strategy is inconsistent with the Funds' principal
investment strategy and investment objective, and if employed could result in a
lower return and loss of market opportunity.
RISK FACTORS
Your investment in the Fund is subject to the risks discussed in the "Overview"
on page 3 under the headings:
Stock Market Risk
Interest Rate Risk
Credit Risk
Emerging Markets Risk
Foreign Investment Risk
[Additional Risks associated with investments in Latin
America]
Below investment grade bonds are commonly referred to as "junk bonds" because
they are usually backed by issuers of less proven or questionable financial
strength. Such issuers are more vulnerable to financial setbacks and less
certain to pay interest and principal than issuers of bonds offering lower
yields and risk. Markets may react to unfavorable news about issuers of below
investment grade bonds causing sudden and steep declines in value.
PERFORMANCE
The total return for Class Y shares since inception on 3/1/98 to 12/31/98 is [
]%. This figure includes the effects of fund expenses. Past performance is not
an indication of future results.
The chart below shows the percentage gains or loss for Class Y shares of the
Fund in each of the last ten calendar years. It should give you general idea of
how the Fund's return has varied from year to year. This graph includes the
effects of Fund Expenses.
Year-by-Year Total Return for Class Y Shares(%)*
1993 1994 1995 1996 1997 1998
7.20 -8.70 9.75 17.59 25.90
Best Quarter: [ ] Quarter 1998
Worst Quarter: [ ]Quarter 1998
*Historical performance for Class Y prior to inception reflects that of Class A,
the original class offered, the inception of which is 11/1/95, and does not
include 12b-1 fees for Class A. If such fees were reflected, returns would
have been higher. Performance includes the reinvestment of income dividends
and capital gain distributions.
EXPENSES
This section describes the fees and expenses you would pay if you bought and
held shares of the Fund.
Shareholder Fees (fees paid directly from your
investment)
Shareholder Transaction Expenses Class Y
Maximum sales charge imposed on None
purchases (as a % of offering price)
Maximum deferred sales charge None (as a % of either the redemption amount or
initial investment whichever is lower)
Annual Fund Operating Expenses (expenses that are
deducted from Fund assets)
Management Other Total Fund
Fees Expenses Operating Expenses*
Class Y .75% 1.07% 1.82%
*Estimated for the fiscal year ending 10/31/99
The table below shows the total expenses you would pay on a $10,000 investment
over one-, three-, five- and ten-year periods. The example is intended to help
you compare the cost of investing in this Fund versus other mutual funds and is
for illustration only. The example assumes a 5% average annual return and that
you reinvest all of your dividends. Your actual costs may be higher or lower.
Example of Fund Expenses
After 1 year $185 After 3 years $573 After 5 years $985
After 10 years $2,137
THE FUNDS' INVESTMENT ADVISORS
The investment advisor manages a Fund's investments and supervises its daily
business affairs. There are three investment advisors for the Evergreen
International and Global Growth Funds. All investment advisors for the Evergreen
Funds are subsidiaries of First Union Corporation, the sixth largest bank
holding company in the United States, with over [$234] billion in consolidated
assets as of 12/31/98. First Union Corporation is located at 301 South College
Street, Charlotte, North Carolina 28288-0630.
Evergreen Asset Management Corp. (EAMC)
is the investment advisor to:
Global Leaders Fund
EAMC with its predecessors, has served as investment advisor to the Evergreen
Funds since 1971, and currently manages over $10.7 billion in assets for 19 of
the Evergreen Funds. EAMC is located at 2500 Westchester Avenue, Purchase, New
York 10577.
Evergreen Investment Management Company (EIMC) is the investment advisor to:
Global Opportunities Fund
International Growth Fund
Latin America Fund
EIMC as been managing mutual funds and private accounts since 1932 and currently
manages over $8.5 billion in assets for 26 of the Evergreen Funds. EIMC is
located at 200 Berkeley Street, Boston, Massachusetts
02116-5034.
Evergreen Investment Management of First Union National Bank (EIM) is the
investment advisor to:
Emerging Markets Growth Fund EIM has been managing money for over 50 years and
currently manages over 32.9 billion in investment assets, including 43 of the
Evergreen Funds. EIM is located at 201 South College Street, Charlotte, North
Carolina
28288-0630.
Year 2000 Compliance
The investment advisors and other service providers for the Evergreen Funds are
taking steps to address any potential Year 2000-related computer problems.
However, there is some risk that these problems could disrupt the Funds'
operations or financial markets generally.
European Currency Conversion Risk Certain countries in Europe will be converting
their Different currencies to single, common currency beginning January 1, 1999.
In connection with this change, investment advisors, mutual funds and their
service providers will need to modify their accounting and recordkeeping systems
to handle the new currency. Your investment in the Fund may be adversely
affected if these technical modifications are not implemented properly. Also,
the conversion to a single currency could impair the markets for securities
denominated in the currencies being eliminated, which could also adversely
impact your investment.
THE FUNDS' PORTFOLIO MANAGERS
Emerging Markets Growth Fund
The day-to-day management of the Fund is handled by
Gilman C. Gunn. Since joining First Union National
Bank (FUNB) in 1991, Mr. Gunn has been a Senior Vice
President and Chief Investment Officer-International at
EIM. Mr. Gunn has managed the Fund since 1997.
Global Leaders Fund
The day-to-day management of the Fund is handled by
Stephen A. Lieber and Edwin D. Miska. Mr. Lieber is
Chairman and Co-Chief Executive Officer of EAMC.
Mr. Miska is an analyst with EAMC. Mr. Lieber and
Mr. Miska have managed the Fund since 1995.
Global Opportunities Fund
The day-to-day management of the Fund is handled by
Gilman C. Gunn. and J. Gary Craven. Since joining
FUNB in 1991, Mr. Gunn has been a Senior Vice
President and Chief Investment Officer-International at
EIMC. Joining FUNB in 1996, Mr. Craven is currently
Senior Vice President, Portfolio Manager and Chief
Investment Office for the Small Company Stock Team for
EIMC. Prior to joining FUNB, Mr. Craven was a
Portfolio Manager at Invista Capital Management from
1987 to 1996. Mr. Gunn and Mr. Craven have managed
the Fund since 1997 and 1998, respectively.
International Growth Fund
The day-to-day management of the Fund is handled by
Gilman C. Gunn. Since joining FUNB in 1991, Mr. Gunn
has been a Senior Vice President and Chief Investment
Officer-International at EIM. Mr. Gunn has managed the
Fund since 1991.
Latin America Fund
The day-to-day management of the Fund is handled by
Antonio T. Docal and Francis X. Claro. Mr . Docal and
Mr. Claro joined EIMC in 1994 and are each a Vice
President and Portfolio Manager. Mr. Docal and
Mr. Claro have co-managed the Fund since 1996.
CALCULATING THE SHARE PRICE
The value of one share, also known as the net asset value, or NAV, is calculated
on each day the New York Stock Exchange is open as of the close of the Exchange
(normally 4:00 p.m. Eastern time). We calculate the share price for each share
by adding up the total assets of the portfolio, subtracting all liabilities,
then dividing by the total number of shares outstanding. Each security held by a
Fund is valued using the most recent market quote for that security. If no
market quotation is available for a given security, we will price that security
at fair value according to policies established by the Funds' Board of Trustees.
The price per share your pay for a Fund purchase or redemption is the next price
calculated after the order is received and all required information is provided.
The value of your account at any given time is the latest share price multiplied
by the number of shares you own. Your account balance may change daily because
the share price may change daily.
HOW TO CHOOSE AN EVERGREEN FUND When choosing an Evergreen Fund, you should:
Most importantly, read the prospectus to see if the Fund is suitable for you.
Talk to an investment professional. He or she is qualified to give you
investment advice based on your investment goals and financial situation and
will be able to answer questions you may have after reading the Fund's
prospectus. He or she can also assist you through all phases of opening your
account.
Request any additional information you want about the Fund, such as the
Statement of Additional Information, Annual Report or Semi-Annual Report
by calling 1-800-343-2898.
WHO CAN BUY CLASS Y SHARES
Class Y shares are only offered to:
Persons who owned shares in a Fund advised by
Evergreen Asset Management Corp. on or before
December 31, 1994.
Certain institutional investors
Investment advisory clients of an investment advisor of an Evergreen Fund (or
the advisor's affiliates).
HOW TO BUY SHARES
Evergreen Funds' low investment minimums make investing easy. Simply fill out an
application and send in your payment, or talk to your investment professional.
Minimum Investments
Initial Additional
Regular Accounts $1,000 $0
IRAs $250 $0
Systematic Investment Plan $50 $25
Method
By Mail or through
an Investment Professional
Complete and sign the account application. Make the check payable to Evergreen
Funds.
Mail the application and your check to the address below:
Evergreen Service Company
P.O. Box 2121
Boston, MA 02106-2121
Overnight Address:
Evergreen Service Company
200 Berkeley St.
Boston, MA 02116
Or deliver them to your investment representative (provided he or she has a
broker-dealer arrangement with Evergreen Distributor, Inc.)
Adding to an Account
Make your check payable to Evergreen Funds Write a note specifying: the Fund
name share class your account number the name(s) in which the account is
registered
Mail to the address below or deliver to your investment
representative
By Phone
Call 1-800-343-2898 to set up an account number and get wiring instructions
(call before 12 noon if you want wired funds to be credited that day).
Instruct your bank to wire or transfer your purchase (they may charge a wiring
fee).
Complete the account application and mail to:
Evergreen Service Company Overnight Address:
P.O. Box 2121 Evergreen Service
Boston, MA 02106-2121 Company
200 Berkeley St.
Boston, MA 02116
Wires received after 4:00 p.m. Eastern time on market trading days will receive
the next market day's closing price.
Call the Evergreen Express Line at 1-800-346-3858 24 hours a
day or 1-800-343-2898 between 8 a.m. and 6 p.m. Eastern
time, on any business day.
If your bank account is set up on file, you can request either: Federal Funds
Wire (offers immediate access to funds) or Electronic transfer through the
Automated Clearing House
which avoids wiring fees.
By Exchange
You can make an additional investment by exchange from an existing Evergreen
Fund's account by contacting your investment representative or calling the
Evergreen Express Line at 1-800-346-3858.*
You can only exchange shares in the same class.
There is no sales charge or redemption fee when exchanging
funds within the Evergreen Funds family.
Orders placed before 4 p.m. Eastern time on market trading
days will receive that day's closing share price (if not, you will receive the
next market day's closing price).
Exchanges are limited to three per calendar quarter, and five per calendar
year.
Exchanges between accounts that do not have identical ownership must be in
writing with a signature guarantee (see below).
Systematic
Investment Plan (SIP)
You can transfer money automatically from your bank account into your Fund on a
monthly basis.
Initial investment minimum is $50 if you invest at least $25 per month with
this service.
To enroll, check off the box on the account application and provide:
your bank account information
the amount and date of your monthly investment
To establish automatic investing for an existing account, call 1-800-343-2898
for an application.
The minimum is $25 per month or $75 per quarter.
You can also establish an investing program through direct
deposit from your paycheck. Call 1-800-343-2898 for details. * Once you have
authorized either the telephone exchange or redemption service, anyone with a
Personal Identification Number (PIN) and the required account information
(including your broker) can request a telephone transaction in your account. All
calls are recorded or monitored for verification, recordkeeping and
quality-assurance purposes. The Evergreen Funds reserve the right to terminate
the exchange privilege of any shareholder who exceeds the listed maximum number
of exchanges, as well as to reject any large dollar exchange if placing it
would, in the judgment of the portfolio manager, adversely affect the price of
the Fund.
HOW TO REDEEM SHARES
We offer you several convenient ways to sell your shares in any of the Evergreen
Funds:
Methods
Call Us
Requirements
Call the Evergreen Express Line at 1-800-346-3858 24 hours a
day or 1-800-343-2898 between 8 a.m. and 6 p.m. Eastern
time, on any business day.
This service must be authorized ahead of time, and is only
available for regular accounts.*
All authorized requests made before 4 p.m. Eastern time on market trading days
will be processed at that day's closing price. Requests after 4 p.m. will be
processed the following business day.
We can either:
wire the proceeds into your bank account (service charges
may apply)
electronically transmit the proceeds to your bank account via
the Automated Clearing House service
mail you a check.
All telephone calls are recorded for your protection. We are not responsible
for acting on telephone orders we believe are genuine.
See exceptions list below for requests that must be made in writing.
Write Us
You can mail a redemption request to:
Evergreen Service Company Overnight Address:
P.O. Box 2121 Evergreen Service Company
Boston, MA 02106-2121 200 Berkeley St.
Boston, MA 02116
Your letter of instructions must:
list the Fund name and the account number
indicate the number of shares or dollar value you wish to
redeem
be signed by the registered owner(s)
See exceptions list below for requests that must be signature guaranteed.
To redeem from an IRA or other retirement account, call 1-800-346-3858 for a
special application.
Sell Your Shares in Person
You may also redeem your shares through participating broker-dealers by
delivering a letter as described above to your broker-dealer.
A fee may be charged for this service.
Systematic
Withdrawal
Plan (SWP)
You can transfer money automatically from your Fund on a monthly or quarterly
basis without redemption fees.
The withdrawal can be mailed to you, or deposited directly to your bank
account.
The minimum is $75 per month
The maximum is 1% of your account per month or 3% per
quarter
To enroll, call 1-800-343-2898 for an application.
Timing of Proceeds
Normally, we will send your redemption proceeds on the next business day after
we receive your request; however, we reserve the right to wait up to seven
business days to redeem any investments made by check and five business days for
investments made by Automated Clearing House transfer.
We also reserve the right to redeem in kind by paying you the proceeds of a
redemption in securities rather than in cash, and to redeem the remaining amount
in the account if your redemption brings the account balance below the initial
minimum of $1,000.
Exceptions: Redemption Requests That Require A Signature Guarantee To protect
you and Evergreen Funds against fraud, certain redemption requests must be in
writing with your signature guaranteed. A signature guarantee can be obtained at
most banks and securities dealers. A notary public is not authorized to provide
a signature guarantee. The following circumstances require signature guarantees:
You are redeeming more than $50,000
You want the proceeds transmitted to a bank account not listed
on the account
You want the proceeds payable to anyone other than the
registered owner(s) of the account
Either your address or the address of your bank account has been changed within
30 days
The account is registered in the name of a fiduciary corporation
or any other organization.
In these cases, additional documentation is required:
corporate accounts: certified copy of corporate resolution fiduciary
accounts: copy of the power of attorney or other governing
document
Who Can Provide A Signature Guarantee:
Commercial Bank
Trust Company
Savings Association
Credit Union
Member of a U.S. stock exchange
OTHER SERVICES
Evergreen Express Line
Use our automated, 24-hour service to check the value of your investment in a
Fund; purchase, redeem or exchange Fund shares; find a Fund's price, yield or
total return; order a statement or duplicate tax form; or hear market commentary
from Evergreen portfolio managers.
Automatic Reinvestment of Dividends
For the convenience of investors, all dividends and capital gains distributions
are automatically reinvested, unless you request otherwise. Distributions can be
made by check or electronic transfer through the Automated Clearing House to
your bank account. The details of your dividends and other distributions will be
included on your statement.
Telephone Investment Plan
You may make additional investments electronically in an existing Fund account
at amounts of not less than $100 or more than $10,000 per investment. Telephone
requests received by 4:00 p.m. Eastern time will be invested the day the request
is received.
Dividend Exchange
You may elect on the application to reinvest capital gains and/or dividends
earned in one Evergreen Fund into an existing account in another Evergreen Fund
in the same share class - automatically. Please indicate on the application the
Evergreen Fund(s) into which you want to invest the distributions.
Reinvestment Privileges
Under certain circumstances, shareholders may, within one year of redemption,
reinstate their accounts at the current price (net asset value).
THE TAX CONSEQUENCES OF INVESTING IN THE FUND You may be taxed in two ways:
On Fund distributions (capital gains and dividends) On any profit you make when
you sell any or all of your shares.
Fund Distributions
A mutual fund passes along to all of its shareholders the net income or profits
it receives from its investments. The shareholders of the Fund then pay any
taxes due, whether they receive these distributions in cash or elect to have
them reinvested. The Funds may also distribute two types of taxable income to
you:
Dividends. The Fund pays a yearly dividend from the dividends, interest and
other income on the securities in which it invests. The frequency of dividends
for the Evergreen International and Global Growth Funds is listed under the
Fund's Investment Strategy section in the summary of each Fund previously
presented.
Capital Gains. When a mutual fund sells a security it owns for a profit, the
result is a capital gain. Evergreen International and Global Growth Funds
generally distribute capital gains at least once a year, near the end of the
calendar year. Short-term capital gains reflect securities held by the Fund for
a year or less and are considered ordinary income just like dividends. Profits
on securities held longer than 12 months are considered long-term capital gains
and are taxed at a special tax rate (20% for most taxpayers, on sales made after
January 1, 1998).
Dividend and Capital Gain Reinvestment Unless you choose otherwise on the
account application, all dividend and capital gain payments will be reinvested
to buy additional shares. Distribution checks that are returned and distribution
checks that are uncashed when the shareholder has failed to respond to mailings
from the shareholder servicing agent will automatically be reinvested to buy
additional shares.
No interest will accrue on amounts represented by uncashed distribution or
redemption checks.
We will send you a statement each January with the federal tax status of
dividends and distributions paid by each Fund during the previous calendar year.
Profits You Realize When You Redeem Shares When you sell shares in a mutual
fund, whether by redeeming or exchanging, you have created a taxable event. You
must report any gain or loss on your tax return unless the transaction entered
into a tax-deferred retirement plan or occurred in a money market fund. It is
your responsibility to keep accurate records of your mutual fund transactions.
You will need this information when you file your income tax return, since you
must report any capital gains or losses you incur when you sell shares.
Remember, an exchange is a purchase and a sale for tax purposes.
Tax Reporting
Evergreen Service Company provides you with a tax statement of your dividend and
capital gains distributions for each calendar year on Form 1099 DIV. Proceeds
from a sale are reported on Form 1099B. You must report these on your tax
return. Since the IRS receives a copy as well, you could pay a penalty if you
neglect to report them.
Evergreen Service Company will send you a tax information guide each year during
tax season, which may include a cost basis statement detailing the gain or loss
on taxable transactions you had during the year. Please consult your own tax
advisor for further information regarding the federal, state and local tax
consequences of an investment in the Funds.
Retirement Plans
You may invest in each Fund through various retirement plans, including IRAs,
401(k) plans, Simplified Employee Plan (SEP) IRAs, 403(b) plans, 457 plans and
others. For special rules concerning these plans, including applications,
restrictions, tax advantages, and potential sales charge waivers, contact your
broker-dealer. To determine if a particular retirement plan may be appropriate
for you, consult your tax advisor.
EXPENSES
Every mutual fund has fees and expenses that are assessed either directly or
indirectly. This section describes each of those fees.
Management Fee
The management fee pays for the normal expenses of managing the Fund, including
portfolio manager salaries, research costs, investment advisory fees and related
expenses.
Other Expenses
Other expenses include miscellaneous fees from outside service providers. These
may include legal, audit, custodial and safekeeping fees, the printing and
mailing of reports and statements, automatic reinvestment of distributions and
other conveniences for which the shareholder pays no transaction fees.
Total Fund Operating Expenses
The total cost of running the Fund is called the expense ratio. As a
shareholder, you are not charged these fees directly; instead they are taken out
before the Fund's price is calculated, and are expressed as a percentage of the
Fund's net assets. The effect of these fees is reflected in the performance
results for that share class. Because these fees are "invisible," investors
should examine them closely in the prospectus, especially when comparing one
fund with another fund in the same investment category. There are two things to
remember about expense ratios: 1) your total return in the Fund is reduced in
direct proportion to the fees; and 2) expense ratios can vary greatly between
funds and fund families, from under 0.25% to over 3%.
FINANCIAL HIGHLIGHTS
This section looks in detail at the results for one share in each share class of
the Funds - how much income it earned, how much of this income was passed along
as a distribution and how much the return was reduced by expenses. The tables
for Global Opportunities Fund, International Growth Fund, Precious Metals Fund
and Latin America Fund have been audited by [ ], the Funds' independent
accountants. The tables for Emerging Markets Fund and Global Leaders Fund have
been audited by [ ], the Fund's independent accountants. For a more complete
picture of the Funds' financials, please see the Funds' Annual Report as well as
the Statement of Additional Information.
FINANCIAL HIGHLIGHTS WILL GO HERE:
OTHER FUND PRACTICES
The Funds may invest in futures and options and foreign currencies. Such
practices are used to hedge a Fund's portfolio. Although this is intended to
increase returns, these practices may actually reduce returns or increase
volatility.
The Funds may also invest in other investment companies. This practice may
expose a Fund to duplicate expenses and lower its value.
In addition, the Funds may borrow money and lend their securities. Borrowing is
a form of leverage that may magnify a Fund's gain or loss. Lending securities
may cause the Fund to lose the opportunity to sell these securities at the most
desirable price and, therefore, lose money.
[PIKs and ADRs]
Please consult the Statement of Additional Information for more information
regarding these and other investment practices used by the Funds, including
risks.
Notes
Evergreen Funds
Money Market
Treasury Money Market Fund
Money Market Fund
Municipal Money Market Fund
Pennsylvania Municipal Money Market Fund
Florida Municipal Money Market Fund
New Jersey 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 High Income Municipal Bond Fund
Florida 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
Strategic Growth Fund
Stock Selector Fund
Evergreen Fund
Omega Fund
Small Company Growth Fund
Aggressive Growth Fund
Micro Cap Fund
Tax Strategic Equity 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
Evergreen Express Line
Call 1-800-346-3858
24 hours a day to
check your account
order a statement
get a Fund's current price, yield and
total return
buy, redeem or exchange Fund shares
Non-retirement account holders
Call 1-800-343-2898
Monday through Friday, 8 a.m. to 6 p.m. Eastern
time to
buy, redeem or exchange shares
order applications
get assistance with your account
Retirement plan account holders
Call 1-800-247-4075
Monday through Friday, 8 a.m. to 6 p.m. Eastern
time
Information Line for Hearing and Speech Impaired
(TTY/TDD)
Call 1-800-343-2888
Monday through Friday, 8 a.m. to 6 p.m. Eastern
time
Write us a letter
Evergreen Service Company
P.O. Box 2121
Boston, MA 02106-2121
to buy, redeem or exchange shares
to change the registration on your account
for general correspondence
For express, registered, certified mail:
Evergreen Service Company
200 Berkeley Street
Boston, MA 02116-5039
Contact us on-line:
www.evergreen-funds.com
Regular communications you'll receive: Account Statements - You'll receive
quarterly statements for each Fund you own. Confirmation Notices - We send a
confirmation of any transaction you make within five days of the
transaction.
Annual and Semiannual reports - You'll receive a detailed financial report on
your Fund(s) twice a year. Tax Forms - Each January you'll receive any tax forms
you need to file your taxes as well as the Evergreen Tax Information Guide.
Evergreen Events - You'll receive a periodic newsletter published exclusively
for Evergreen shareholders.
For More Information About the Evergreen International and Global Growth Funds,
Ask for: The Funds' most recent Annual or Semi-Annual Report, which contains a
complete financial accounting for each Fund and a complete list of the Fund's
holdings as of a specific date, as well as commentary from the portfolio
manager. This Report discusses the market conditions and investment strategies
that significantly affected the Fund's performance during the most recent fiscal
year or period.
The Statement of Additional Information (SAI), which contains more detailed
information about the policies and procedures of the Funds. The SAI has been
filed with the Securities and Exchange Commission ("SEC") and its contents are
legally considered to be part of this prospectus.
For questions, other information, or to request a copy, without charge, of any
of the documents, call 1-800-343-2898 or ask your investment representative. We
will mail material within three business days.
Information about these Funds (including the SAI) is also available on the SEC's
Internet web site at http://www.sec.gov, or, for a duplication fee, by writing
the SEC Public Reference Section, Washington DC 20549-6009. This material can
also be reviewed and copied at the SEC's Public Reference Room in Washington,
DC. For more information, call the Commission at 1-800-SEC-0330.
[LOGO OF EVERGREEN FUNDS APPEARS HERE]
Evergreen Distributor, Inc.
125 W. 55th Street
New York, New York 10019
[#] [811- ]
EVERGREEN INTERNATIONAL TRUST
200 Berkeley Street
Boston, Massachusetts 02116
(800) 633-2700
INTERNATIONAL AND GLOBAL GROWTH FUNDS
STATEMENT OF ADDITIONAL INFORMATION
March 1, 1999
Evergreen Emerging Markets Fund (Emerging Markets)
Evergreen Global Leaders Fund (Global Leaders)
Evergreen Global Opportunities Fund (Global Opportunities)
Evergreen International Growth Fund (International Growth)
Evergreen Latin America Fund (Latin America)
Evergreen Precious Metals Fund (Precious Metals)
(Each a Fund; together, the Funds)
Each Fund is a series of Evergreen International Trust (the
Trust).
This Statement of Additional Information (SAI) pertains to all classes of
shares of the Funds listed above. It is not a prospectus but should be read in
conjunction with the prospectuses dated March 1, 1999 for the Fund in which you
are interested. The Funds are offered through two separate prospectuses: one
offering Class A, Class B and Class C shares of each Fund and one offering only
Class Y shares of each Fund (except Precious Metals). You may obtain either of
these prospectuses without charge by calling (800) 343-2898.
Certain information may be incorporated by reference to the Funds Annual
Report dated October 31, 1998. You may obtain a copy of the Annual Report
without charge by calling (800) 343-2898.
25037
TABLE OF CONTENTS
[page #s will be added to
final version]
PART 1
TRUST HISTORY
INVESTMENT POLICIES
OTHER SECURITIES AND PRACTICES
PRINCIPAL HOLDERS OF FUND SHARES
EXPENSES
PERFORMANCE
COMPUTATION OF CLASS A OFFERING PRICE
SERVICE PROVIDERS
FINANCIAL STATEMENTS
PART 2
ADDITIONAL INFORMATION ON SECURITIES AND INVESTMENT PRACTICES
PURCHASE, REDEMPTION AND PRICING OF SHARES
SALES CHARGE WAIVERS AND REDUCTIONS
PERFORMANCE CALCULATIONS
PRINCIPAL UNDERWRITER
DISTRIBUTION EXPENSES UNDER RULE 12b-1
TAX INFORMATION
BROKERAGE
ORGANIZATION
INVESTMENT ADVISORY AGREEMENT
MANAGEMENT OF THE TRUST
CORPORATE AND MUNICIPAL BOND RATINGS
ADDITIONAL INFORMATION
PART 1
TRUST HISTORY
The Evergreen International Trust is an open-end management investment
company, which was organized as a Delaware business trust on September 18, 1997.
A copy of the Declaration of Trust is on file as an exhibit to the Trust's
Registration Statement, of which this SAI is a part. This summary is qualified
in its entirety by reference to the Declaration of Trust.
INVESTMENT POLICIES
Each Fund has adopted the fundamental investment restrictions set forth
below which may not be changed without the vote of a majority of the Fund's
outstanding shares, as defined in the Investment Company Act of 1940 (the1940
Act). Where necessary, an explanation beneath a fundamental policy describes the
Funds practices with respect to that policy, as allowed by current law. If the
law governing a policy changes, the Funds practices may change accordingly
without a shareholder vote. Unless otherwise stated, all references to the
assets of the Fund are in terms of current market value.
1. Diversification
Each Fund may not make any investment that is inconsistent with its
classification as a diversified investment company under the 1940 Act.
Further Explanation of Diversification Policy:
To remain classified as a diversified investment company under the 1940
Act, each Fund must conform with the following: With respect to 75% of its total
assets, a diversified investment company may not invest more than 5% of its
total assets, determined at market or other fair value at the time of purchase,
in the securities of any one issuer, or invest in more than 10% of the
outstanding voting securities of any one issuer, determined at the time of
purchase. These limitations do not apply to investments in securities issued or
guaranteed by the United States (U.S.) government or its agencies or
instrumentalities.
2. Concentration
Each Fund may not concentrate its investments in the securities of issuers
primarily engaged in any particular industry (other than securities that are
issued or guaranteed by the U.S. government or its agencies or
instrumentalities).
Further Explanation of Concentration Policy:.
Each Fund may not invest more than 25% of its total assets, taken at market
value, in the securities of issuers primarily engaged in any particular industry
(other than securities issued or guaranteed by the U.S. government or its
agencies or instrumentalities).
3. Issuing Senior Securities
Except as permitted under the 1940 Act, each Fund may not issue senior
securities.
4. Borrowing
Each Fund may not borrow money, except to the extent permitted by
applicable law.
Further Explanation of Borrowing Policy:
Each Fund may borrow from banks and enter into reverse repurchase
agreements in an amount up to 33 1/3% of its total assets, taken at market
value. Each Fund may also borrow up to an additional 5% of its total assets from
banks or others. A Fund may borrow only as a temporary measure for extraordinary
or emergency purposes such as the redemption of Fund shares. A Fund may purchase
additional securities so long as borrowings do not exceed 5% of its total
assets. Each Fund may obtain such short-term credit as may be necessary for the
clearance of purchases and sales of portfolio securities. Each Fund may purchase
securities on margin and engage in short sales to the extent permitted by
applicable law.
5. Underwriting
Each Fund may not underwrite securities of other issuers, except insofar as
a Fund may be deemed to be an underwriter in connection with the disposition of
its portfolio securities.
6. Real Estate
Each Fund may not purchase or sell real estate, except that, to the extent
permitted by applicable law, a Fund may invest in (a) securities that are
directly or indirectly secured by real estate, or (b) securities issued by
issuers that invest in real estate.
7. Commodities
Each Fund may not purchase or sell commodities or contracts on commodities,
except to the extent that a Fund may engage in financial futures contracts and
related options and currency contracts and related options and may otherwise do
so in accordance with applicable law and without registering as a commodity pool
operator under the Commodity Exchange Act.
8. Lending
Each Fund may not make loans to other persons, except that a Fund may lend
its portfolio securities in accordance with applicable law. The acquisition of
investment securities or other investment instruments shall not be deemed to be
the making of a loan.
Further Explanation of Lending Policy:
To generate income and offset expenses, a Fund may lend portfolio
securities to broker-dealers and other financial institutions in an amount up to
33 1/3% of its total assets, taken at market value. While securities are on
loan, the borrower will pay the Fund any income accruing on the security. The
Fund may invest any collateral it receives in additional portfolio securities,
such as U.S. Treasury notes, certificates of deposit, other high-grade,
short-term obligations or interest bearing cash equivalents. Gains or losses in
the market value of a security lent will affect the Fund and its shareholders.
When a Fund lends its securities, it will require the borrower to give the
Fund collateral in cash or government securities. The Fund will require
collateral in an amount equal to at least 100% of the current market value of
the securities lent, including accrued interest. The Fund has the right to call
a loan and obtain the securities lent any time on notice of not more than five
business days. The Fund may pay reasonable fees in connection with such loans.
OTHER SECURITIES AND PRACTICES
For information regarding certain securities the Funds may purchase and
certain investment practices the Funds may use, see the following sections under
Additional Information on Securities and Investment Practices in Part
2 of this SAI:
Defensive Investments
U.S. Government Securities
When-Issued, Delayed-Delivery and Forward Commitment Transactions Repurchase
Agreements Reverse Repurchase Agreements Securities Lending Options Futures
Transactions Margin in Futures Transactions Foreign Securities Foreign Currency
Transactions Illiquid and Restricted Securities Investment in Other Investment
Companies Short Sales Brady Bonds
PRINCIPAL HOLDERS OF FUND SHARES
As of November 30, 1998, the officers and Trustees of the Trust owned as a
group less than 1% of the outstanding shares of any class of each Fund.
Set forth below is information with respect to each person who, to each
Funds knowledge, owned beneficially or of record more than 5% of the outstanding
shares of any class of each Fund as of November 30, 1998.
Emerging Markets Class A
Charles Schwab & Co., Inc. 31.747%
FBO Marilyn Izdebski
David Isaac JT Ten
101 Montgomery St.
San Francisco, CA 94104
7.140%
Datalynx
P.O. Box 173736
Denver, CO 80217
Trust Company of America 6.964%
FBO HCM
P.O. Box 6503
Englewood, CO 80155
Emerging Markets-Class B
MLPF&S for the sole benefit 7.840%
of its customers
Attn: Fund Administration
4800 Deer Lake Drive
Jacksonville, FL 32246
Emerging Markets-Class C
State Street Bank & Trust 12.381%
Co., Custodian
IRA FBO
William B. Read
100 Christwood Blvd.
Covington, LA 70433
Donaldson Lufkin Jenrette 9.424%
Securities Corp.
P.O. Box 2052
Jersey City, NJ 07303
Donaldson Lufkin Jenrette 7.876%
Securities Corp.
P.O. Box 2052
Jersey City, NJ 07303
Donaldson Lufkin Jenrette 6.020%
Securities Corp.
P.O. Box 2052
Jersey City, NJ 07303
5.891%
Key Leslie Nuttall
Elizabeth Duzan Nuttall
26067 SE 26th Ct.
Issaquah, WA 98029
5.592%
Donaldson Lufkin Jenrette
Securities Corp.
P.O. Box 2052
Jersey City, NJ 07303
Emerging Markets Class Y
First Union National Bank 71.192%
Trust Accounts
Attn: Ginny Batten
11th Floor
301 S. Tyron St.
Charlotte, NC 28202
First Union National Bank 27.758%
Trust Accounts
Attn: Ginny Batten
11th Floor
301 S. Tyron St.
Charlotte, NC 28202
Global Leaders-Class A
None
Global Leaders-Class B
None
Global Leaders-Class C
MLPF&S for the sole benefit 15.029%
of its customers
Attn: Fund Administration
4800 Deer Lake Drive
Jacksonville, FL 32246
Global Leaders Class Y
First Union National Bank 58.550%
Cash Account
Attn: Trust Operations
401 S. Tyron St.
Charlotte, NC 28202
First Union National Bank 14.300%
Reinvest Account
Attn: Trust Operations
401 S. Tyron St.
Charlotte, NC 28202
Global Opportunities Class A
ROFE & Co. c/o 21.725%
State Street Bank and Trust
Co.
For Sub Account
Kokusai Securities Co. Ltd.
P.O. Box 5061
Boston, MA 02206
MLPF&S For The Sole Benefit 15.128%
Of Its Customers Attn:
Fund Administration
4800 Deer Lake Dr E 2nd FL
Jacksonville FL 32246-6484
Global Opportunities Class B
MLPF&S for the sole benefit 23.572%
of its customers
Attn: Fund Administration
4800 Deer Lake Drive
Jacksonville, FL 32246
Global Opportunities Class C
MLPF&S for the sole benefit 43.579%
of its customers
Attn: Fund Administration
4800 Deer Lake Drive
Jacksonville, FL 32246
Global Opportunities Class Y
First Union National Bank 47.587%
Trust Accounts
Attn: Ginny Batten
301 S. Tryon St 11th FL
CMG-1151
Charlotte, NC 28202-1910
State Street Bank & Trust 30.359%
Co
Cust For The IRA Of
Thomas V. Young
850 N. Dewitt PL APT 22E
Chicago, IL 60611-7333
State Street Bank & Trust 19.545%
Co Cust For The
IRA FBO
Douglas Lundberg
765 Oriole LN
Hudson, WI 54016-7675
International Growth Class A
American Express Trust Co 5.219%
FBO American Express Trust
Retirement Service
N10/996
PO Box 534
Minneapolis, MN 55440-0534
International Growth Class B
MLPF&S for the sole benefit 15.422%
of its customers
Attn: Fund Administration
4800 Deer Lake Drive
Jacksonville, FL 32246
International Growth Class C
Roney & Co FAO 9.581%
Elaine Marie Moscone Rev
Trust
Elaine Marie Moscone TTEE
UAD 3/29/90
382 Cranbrook Court
Bloomfield Hills, MI 48304
J C Bradford & Co Cust FBO 6.447% RCIP Limited Partners ! 330 Commerce
St Nashville, TN 37201-1809
International Growth Class Y
First Union National Bank 64.564%
Trust Accounts
Attn: Ginny Batten
301 S. Tryon St 11th FL
CMG-1151
Charlotte, NC 28202-1910
First Union National Bank 35.088%
Trust Accounts
Attn: Ginny Batten
301 S. Tryon St 11th FL
CMG-1151
Charlotte, NC 28202-1910
Latin America Class A
MLPF&S for the sole benefit 34.682%
of its customers
Attn: Fund Administration
4800 Deer Lake Drive
Jacksonville, FL 32246
Latin America Class B
MLPF&S for the sole benefit 36.966%
of its customers
Attn: Fund Administration
4800 Deer Lake Drive
Jacksonville, FL 32246
Latin America Class C
MLPF&S for the sole benefit 43.036%
of its customers
Attn: Fund Administration
4800 Deer Lake Drive
Jacksonville, FL 32246
Latin America Class Y
First Union National Bank 48.903%
Trust Accounts
Attn: Ginny Batten
301 S. Tryon St 11th FL
CMG-1151
Charlotte, NC 28202-1910
First Union National Bank 17.259%
Trust Accounts
Attn: Ginny Batten
301 S. Tryon St 11th FL
CMG-1151
Charlotte, NC 28202-1910
State Street Band And Trust 16.619%
Co
Cust IRA FBO
Martha Monahan
326 Brimhall St
Saint Paul, MN 55105-2430
Joe N. Conant 11.797%
802 So Pioneer
Abilene, TX 79605
Precious Metals Class A
MLPF&S for the sole benefit 5.061%
of its customers
Attn: Fund Administration
4800 Deer Lake Drive
Jacksonville, FL 32246
Precious Metals Class B
MLPF&S for the sole benefit 17.743%
of its customers
Attn: Fund Administration
4800 Deer Lake Drive
Jacksonville, FL 32246
Precious Metals Class C
JC Bradford & Co Cust FBO 49.038%
Evans Tool & Die Inc P/S
TST
330 Commerce St
Nashville, TN 37201-1809
MLPF&S for the sole benefit 19.387%
of its customers
Attn: Fund Administration
4800 Deer Lake Drive
Jacksonville, FL 32246
State Street Bank And Trust 15.113%
Co Cust
Rollover IRA FBO
Sandra K. Rosenberg
1558 Park Circle
Mendota Heights, MN 55118
EXPENSES
Advisory Fees
Each Fund has its own investment advisor. For more information, see
Investment Advisory Agreements in Part 2 of this SAI.
Evergreen Asset Management Corp. (EAMC) is the investment advisor to
Global Leaders. Lieber & Company acts as sub-advisor to the Fund, and is
reimbursed by EAMC for the costs of providing sub-advisory services. EAMC is
entitled to receive from the Fund an annual fee of 0.95% based on the Funds
average daily net assets.
Evergreen Investment Management (EIM), formerly the Capital Management
Group of First Union National Bank, is the investment advisor of First Union
National Bank to Emerging Markets. EIM is entitled to receive Emerging Markets
an annual fee equal based on the Funds average daily net assets as follows:
Average Daily Net Fee
Assets
first $100 1.50%
million
next $100 million 1.45%
next $100 million 1.40%
over $300 1.35%
million
Evergreen Investment Management Company (EIMC), formerly Keystone
Investment Management Company, is the sub- advisor to Emerging Markets. EIMC is
entitled to receive from EIMC an annual fee based on the Funds average daily net
assets, as follows:
Average Daily Net Fee
Assets
first $100 1.00%
million
next $100 million 0.95%
next $100 million 0.90%
over $300 0.85%
million
EIMC is also the investment advisor to Global Opportunities, International
Growth, Latin America and Precious Metals. EIMC is entitled to receive from each
of these Funds an annual fee based on the Funds average daily
net assets, as follows:
Latin America &
International Growth
Average Daily Net Assets Fee
first $200 million 0.75%
next $200 million 0.65%
next $200 million 0.55%
over $600 million 0.45%
Global Opportunities
Average Daily Net Assets Fee
first $200 million 1.00%
next $200 million 0.95%
next $200 million 0.85%
over $600 million 0.75%
Precious Metals
Average Daily Net Assets Fee
first $100 million 0.70%
next $100 million 0.625%
over $200 million 0.50%
Harbor Capital Management Company, Inc., 125 High Street, Boston, Massachusetts
02110, is the Consultant to Precious Metals and receives from EIMC an annual fee
equal to 0.10% of the Funds average daily net assets.
Advisory Fees Paid
Below are the advisory fees paid by each Fund for the last three fiscal
periods.
Fund/Fiscal Year or Period Advisory Fee Waiver
Year Ended 10/31/98
Emerging Markets $1,052,662 $119,348
Global Leaders $2,726,675 $0
Global Opportunities $2,851,287 $0
International Growth $1,698,718 $0
Latin America $580,017 $0
Precious Metals $834,351 $0
Fund/Fiscal Year or Period Advisory Fee Waiver
$703,822 $240,240
Emerging Markets (Year ended
10/31/97)
$1,398,605 $113.024
Global Leaders (Year ended
10/31/97)
$5,048,808 $0
Global Opportunities (Year ended
9/30/97)
$325,228 $0
Global Opportunities (One month
ended 10/30/97)
$1,194,384 $0
International Growth (Year ended
10/31/97)
$678,437 $0
Precious Metals (Eight months
ended 10/31/97)
$869,691 $0
Latin America (Year ended
10/31/97)
Precious Metals (Year ended $1,322,411 $0
2/28/97
Year or Period Ended 1996
$342,379 $326,122
Emerging Markets (Year ended
10/31/96)
$199,941 $138,323
Global Leaders (Four months ended
10/31/96)
$5,668,408 $0
Global Opportunities (Year ended
9/30/96)
$1,076,770 $0
International Growth (Year ended
10/31/96)
Latin America (Year ended $831,618 $0
10/31/96)
Precious Metals (Year ended $1,354,605 $0
10/31/96)
Brokerage Commissions
Below are the brokerage commissions paid by each Fund and brokerage
commissions paid by the applicable Funds to Lieber & Company for the last three
fiscal periods. For more information regarding brokerage commissions, see
Brokerage in Part 2 of this SAI.
Total Total Paid to
Paid to Lieber
All
Brokers
Fiscal Year ended 10/31/98
Emerging Markets $0 $0
Global Leaders $295,617 $134,741
Global Opportunities $0 $0
International Growth $0 $0
$0 $0
Latin America
$0 $0
Precious Metals
Year or Period Ended 1997
$485,985 $0
Emerging Markets (10/31/97)
$476,427 $119,963
Global Leaders (10/31/97)
$125,714 $0
Global Opportunities (One month
ended 10/31/97)
Global Opportunities (Year $2,093,2 $0
ended 9/30/97) 21
$944,391 $0
International Growth
(10/31/97)
$172,276 $0
Precious Metals (Eight months
ended 10/31/97)
$680,662 $0
Latin America (10/31/97)
$477,545 $0
Precious Metals (2/28/97)
Year or Period Ended 1996
$242,847 $0
Emerging Markets (10/31/96)
$203,040 $54,074
Global Leaders (Four months
ended 10/31/96)
$1,809,1 $0
Global Opportunities (One month 81
ended 9/30/96)
$749,530 $0
International Growth
(10/31/96)
$1,083,0 $0
Latin America (10/31/96 46
$438,893 $0
Precious Metals ( Year ended
2/29/96)
Percentage of Brokerage Commissions Paid to Lieber & Co. and
EIMC
The table below shows, for the fiscal year or period ended October 31,
1998, (1) the percentage of aggregate brokerage commissions paid by Global
Leaders to Lieber & Company and Emerging Markets to EIMC; and (2) the percentage
of the applicable Funds aggregate dollar amount of commissionable transactions
effected through Lieber & Company or EIMC. For more information, see Selection
of Brokers under Brokerage in Part 2 of this SAI.
Fund Percentage of Percentage of
Commissions to Commissionable
Lieber & Transactions
Company/ through Lieber
EIMC & Company/
EIMC
Global 45.6% 59.5%
Leaders
Underwriting Commissions
Below are the underwriting commissions paid by each Fund and the amounts
retained by the principal underwriter for the last three fiscal periods. For
more information, see Principal Underwriter in Part 2 of this SAI.
Fund/Fiscal Year or Period Total Underwrit
Underwriti ing
ng Commissio
Commission ns
s Retained
Year Ended 10/31/98
Emerging Markets $54,089 $1,688
Global Leaders $1,865,837 $17,365
Global Opportunities $204,540 $1,290
International Growth $1,003,080 $910
Latin America $114,282 $3,958
Precious Metals $382,097 $460
Year or Period Ended 1997
Emerging Markets (Year ended $72,733 $16,463
10/31/97)
Global Leaders (Year ended $3,877,434 $188,288
10/31/97)
Global Opportunities (Year $774,233 $23,841
ended 9/30/97)
$17,298
Global Opportunities (One month $206,755
ended 10/30/97)
International Growth (Year $645,122 $0
ended 10/31/97)
Latin America (Year ended $324,470 $29,070
10/31/97)
Precious Metals (Eight months $666,842 $0
ended 10/31/97)
Precious Metals (Year ended $2,088,478 $1,058,13
2/28/97) 1 7
Year or Period Ended 1996
Emerging Markets (Year ended $12,924 $1,307
10/31/96)
Global Leaders (Four months $221,285 $23,449
ended 10/31/96)
Global Opportunities (Year $6,424,039 $0
ended 9/30/96)
International Growth (Year $1,382,238 $442,507
ended 10/31/96)
Latin America (Year ended $1,172,200 $1,020,43
10/31/96) 2
Precious Metals (Year ended $1,979,775 $775,218
10/31/96)
12b-1 Fees
Below are the 12b-1 fees paid by each Fund for the fiscal year or period
ended October 31, 1998. For more information, see Distribution Expenses Under
Rule 12b-1 in
Part 2 of this SAI.
Class A Class B Class C
Fund
Distrib Service Distribu Service Distrib Service
ution Fees tion Fees ution Fees
Fees Fees Fees
$0 $13,066 $29,386 $9,795 $5,786 $1,928
Emerging
Markets
$0 $215,079 $1,172,3 $390,774 $24,357 $8,119
Global 21
Leaders
$0 $195,706 $1,324,0 $441,377 $260,39 $86,797
Global 15 2
Opportunitie
s
$0 $206,478 $548,975 $182,991 $8,670 $2,890
Internationa
l Growth
$0 $28,095 $435,190 $145,918 $60,243 $20,081
Latin
America
$0 $175,596 $325,364 $108,454 $2,782 $927
Precious
Metals
Trustee Compensation
Listed below is the Trustee compensation paid by the Trust
individually and by the Trust and the eight other trusts in the Evergreen Fund
Complex for the twelve months ended October 31, 1998. The Trustees do not
receive pension or retirement benefits from the Funds. For more information, see
Management of the Trust in Part 2 of this SAI.
Trustee Aggregate Total
Compensation Compensation
from Trust from Trust and
Fund Complex
Paid to
Trustees**
$2,284 $74,004
Laurence B.
Ashkin
$2,200 $67,504
Charles A.
Austin, III
$2,140 $65,422
K. Dun Gifford
$2,984 $99,343
James S. Howell
$2,140 $65,422
Leroy Keith Jr.
$2,454 $78,504
Gerald M.
McDonnell
$2,728 $88,081
Thomas L.
McVerry
$2,292 $71,422
William Walt
Pettit
$2,122 $64,797
David M.
Richardson
$2,465 $80,520
Russell A.
Salton, III
$2,465 $81,019
Michael S.
Scofield
$2,258 $70,539
Richard J.
Shima
$774 $29,778
Robert J.
Jeffries*
$1,408 $41,020
Foster Bam*
*Former Trustee; retired as of December 31, 1997.
**Certain Trustees have elected to defer all or
part of their total compensation for
the twelve months ended October 31, 1998. The
amounts listed below will be payable
in later years to the respective Trustees:
Austin $ 9,200
Howell $81,119
McDonnell $78,504
McVerry $88,081
Pettit $71,422
Salton $80,520
Scofield $11,740
PERFORMANCE
Total Return
Below are the annual total returns for each class of shares of the Funds
(including applicable sales charges) as of October 31, 1998. For more
information, see Total Return under Performance Calculations in Part 2 of this
SAI.
Fund/Class One Year Five Years Ten Years Inception
or Since Date
Inception
Emerging Markets
-22.74% N/A 5.91%
Class A 9/6/94
-23.80% N/A -5.99%
Class B 9/6/94
-20.78% N/A -5.57%
Class C 9/6/94
-18.63% N/A -4.56%
Class Y 9/6/94
Global Leaders 6/3/96
4.60% N/A 10.34%
Class A 6/3/96
4.19% N/A 10.74%
Class B 6/3/96
8.05% N/A 11.71%
Class C 6/3/96
10.23% N/A 14.95%
Class Y 11/1/95
GLobal Opportunities 2/1/93
-16.58% 2.70% 9.33%
class A 3/16/88
-17.11% 2.56% 7.15%
Class B 2/1/93
-13.84% 2.89% 7.32%
Class C 2/1/93
-12.45% N/A -5.23%
Class Y 1/13/97
International Growth 9/2/94
N/A N/A 4.04%
Class A 1/20/98
5.05% 8.50% 6.19%
Class B 9/6/79
N/A N/A -5.60%
Class C 3/6/98
N/A N/A -3.62%
Class Y 3/9/98
Precious Metals 10/7/94
N/A N/A 10.95%
Class A 1/20/98
-26.25% -11.38% 1.98%
Class B 1/30/78
N/A N/A 16.16%
Class C 1/29/98
Latin America over ten years
ago
-30.63% N/A 0.00%
Class A 11/1/93
-30.45% N/A 0.00%
Class B 11/1/93
-28.42% N/A 0.24%
Class C 11/1/93
N/A N/A -30.71%
Class Y 3/13/98
COMPUTATION OF CLASS A OFFERING PRICE
Class A shares are sold at the NAV plus a sales charge. Below is an example
of the method of computing the offering price of Class A shares of each Fund.
The example assumes a purchase of Class A shares of each Fund aggregating less
than $100,000 based upon the NAV of each Fund Class A shares at the end of each
Fund latest fiscal period. For more information, see Purchase, Redemption and
Pricing of Shares.
Fund Date Net Sales Offering
Asset Charge Price
Value Per
Per Share
Share
Emerging 10/31/98 $7.90 4.75% $8.29
Markets
Global 10/31/98 $14.95 4.75% $15.70
Leaders
Global 10/31/98 $19.26 4.75% $20.22
Opportuniti
es
Internation 10/31/98 $7.47 4.75% $7.84
al Growth
Latin 10/31/98 $7.56 4.75% $7.94
America
Precious 10/31/98 $11.64 4.75% $12.22
Metals
SERVICE PROVIDERS
Administrator
Evergreen Investment Services, Inc. ("EIS") serves as administrator to
Emerging Markets and Global Leaders, subject to the supervision and control of
the Trust's Board of Trustees. EIS provides the Funds with facilities, equipment
and personnel and is entitled to receive a fee from the Fund based on the total
assets of all mutual funds for which EIS serves as administrator and a First
Union Corporation subsidiary serves as investment advisor. The fee paid to EIS
is calculated in accordance with the following schedule:
Assets Fee
first $7 0.050%
billion
next $3 0.035%
billion
next $5 0.030%
billion
next $10 0.020%
billion
next $5 0.015%
billion
over $30 0.010%
billion
Transfer Agent
Evergreen Service Company ("ESC"), a subsidiary of First Union
Corporation, is the Funds transfer agent. ESC issues and redeems shares, pays
dividends and performs other duties in connection with the maintenance of
shareholder accounts. The transfer agent's address is P.O. Box 2121, Boston,
Massachusetts 02106-2121. The Fund pays ESC annual fees as follows:
Fund Type Annual Annual
Fee Per Fee Per
Open Closed
Account Account
Monthly $25.50 $9.00
Dividend Funds
Quarterly $24.50 $9.00
Dividend Funds
Semiannual $23.50 $9.00
Dividend Funds
Annual $23.50 $9.00
Dividend Funds
Money Market $25.50 $9.00
Funds
Distributor
Evergreen Distributor, Inc. (the "Distributor")
markets the Funds through broker-dealers and other
financial representatives. Its address is 125 W. 55th
Street, New York, NY 10019.
Independent Auditors
KPMG Peat Marwick LLP, 99 High Street, Boston,
Massachusetts 02110, audits the financial statements of
Global Opportunities, International Growth, Latin America
and Precious Metals.
PricewaterhouseCoopers LLP, 1177 Avenue of the Americas, New York, New York
10036 audits the financial statements of Emerging Markets and Global Leaders.
Custodian
State Street Bank and Trust Company is the Funds' custodian. The bank
keeps custody of each Fund's securities and cash and performs other related
duties. The custodian's address is 225 Franklin Street, Boston, Massachusetts
02110.
Legal Counsel
Sullivan & Worcester LLP provides legal advice
to the Funds. Its address is 1025 Connecticut Avenue,
N.W., Washington, D.C. 20036.
FINANCIAL STATEMENTS
The audited financial statements and the reports thereon are hereby
incorporated by reference to the Funds Annual Report, a copy of which may be
obtained without charge from ESC, P.O. Box 2121, Boston, Massachusetts 02106-
2121.
EVERGREEN FUNDS
Statement of Additional Information ("SAI")
PART 2
ADDITIONAL INFORMATION ON SECURITIES
AND INVESTMENT PRACTICES
The prospectus describes the Fund's investment objective and the securities in
which it primarily invests. The following describes other securities the Fund
may purchase and investment strategies it may use. Some of the information below
will not apply to the Fund in which you are interested. See the list under Other
Securities and Practices in Part 1 of this SAI to determine which of the
sections below are applicable.
Defensive Investments
The Fund may invest up to 100% of its assets in high quality money market
instruments, such as notes, certificates of deposit, commercial paper, banker's
acceptances, bank deposits or U.S. government securities if, in the opinion of
the advisor, market conditions warrant a temporary defensive investment strategy
U.S. Government Securities
The Fund may invest in securities issued or guaranteed by U.S. Government
agencies or instrumentalities.
These securities are backed by (1) the discretionary authority of the U.S.
Government to purchase certain obligations of agencies or instrumentalities or
(2) the credit of the agency or instrumentality issuing the obligations.
Some government agencies and instrumentalities may not
receive financial support from the
U.S. Government. Examples of such agencies are:
(I) Credit System, including the National Bank for
Cooperatives, Farm Credit Banks and
Banks for Cooperatives;
(ii) Home Administration;
(iii) Federal Home Loan Banks;
(iv) Federal Home Loan Mortgage Corporation;
(v) Federal National Mortgage Association; and
(vi) Student Loan Marketing Association.
Securities Issued by the Government National Mortgage Association
("GNMA"). The Fund may
invest in securities issued by the GNMA, a corporation wholly-
owned by the U.S. Government.
GNMA securities or "certificates" represent ownership in a pool of
underlying mortgages. The
timely payment of principal and interest due on these securities
is guaranteed.
Unlike conventional bonds, the principal on GNMA certificates is not paid
at maturity but over the life of the security in scheduled monthly payments.
While mortgages pooled in a GNMA
certificate may have maturities of up to 30 years, the certificate itself will
have a shorter average maturity and less principal volatility than a comparable
30-year bond.
The market value and interest yield of GNMA certificates can vary due not
only to market fluctuations, but also to early prepayments of mortgages within
the pool. Since prepayment rates vary widely, it is impossible to accurately
predict the average maturity of a GNMA pool. In addition to the guaranteed
principal payments, GNMA certificates may also make unscheduled principal
payments resulting from prepayments on the underlying mortgages.
Although GNMA certificates may offer yields higher than those available
from other types of U.S. Government securities, they may be less effective as a
means of locking in attractive long-term rates because of the prepayment
feature. For instance, when interest rates decline, prepayments are likely to
increase as the holders of the underlying mortgages seek refinancing. As a
result, the value of a GNMA certificate is not likely to rise as much as the
value of a comparable debt security would in response to same decline. In
addition, these prepayments can cause the price of a GNMA certificate originally
purchased at a premium to decline in price compared to its par value, which may
result in a loss.
When-Issued, Delayed-Delivery and Forward Commitment Transactions
The Fund may purchase securities on a when-issued or delayed delivery basis and
may purchase or sell securities on a forward commitment basis. Settlement of
such transactions normally occurs within a month or more after the purchase or
sale commitment is made.
The Fund may purchase securities under such conditions only with the
intention of actually acquiring them, but may enter into a separate agreement to
sell the securities before the settlement date. Since the value of securities
purchased may fluctuate prior to settlement, the Fund may be required to pay
more at settlement than the security is worth. In addition, the purchaser is not
entitled to any of the interest earned prior to settlement.
Upon making a commitment to purchase a security on a when-issued, delayed
delivery or forward commitment basis the Fund will hold liquid assets worth at
least the equivalent of the amount due. The liquid assets will be monitored on a
daily basis and adjusted as necessary to maintain the necessary value.
Purchases made under such conditions may involve the risk that yields
secured at the time of commitment may be lower than otherwise available by the
time settlement takes place, causing an unrealized loss to the Fund. In
addition, when the Fund engages in such purchases, it relies on the other party
to consummate the sale. If the other party fails to perform its obligations, the
Fund may miss the opportunity to obtain a security at a favorable price or
yield.
Repurchase Agreements
The Fund may enter into repurchase agreements with entities that are
registered as U.S. Government securities dealers, including member banks of the
Federal Reserve System having at least $1 billion in assets, primary dealers in
U.S. government securities or other financial institutions believed by the
investment advisor to be creditworthy. In a repurchase agreement the Fund
obtains a security and simultaneously commits to return the security to the
seller at a set price (including principal and interest) within period of time
usually not exceeding seven days. The resale price reflects the purchase price
plus an agreed upon market rate of interest which is unrelated to the coupon
rate or maturity of the underlying security. A repurchase agreement involves the
obligation of the seller to pay the agreed upon price, which obligation is in
effect secured by the value of the underlying security.
The Fund's custodian or a third party will take possession of the
securities subject to repurchase agreements, and these securities will be marked
to market daily. To the extent that the original seller does not repurchase the
securities from the Fund, the Fund could receive less than the repurchase price
on any sale of such securities. In the event that such a defaulting seller filed
for bankruptcy or became insolvent, disposition of such securities by the Fund
might be delayed pending court action. The Fund's investment advisor believes
that under the regular procedures normally in effect for custody of the Fund's
portfolio securities subject to repurchase agreements, a court of competent
jurisdiction would rule in favor of the Fund and allow retention or disposition
of such securities. The Fund will only enter into repurchase agreements with
banks and other recognized financial institutions, such as broker-dealers, which
are deemed by the investment advisor to be creditworthy pursuant to guidelines
established by the Board of Trustees.
Reverse Repurchase Agreements
As described herein, the Fund may also enter into reverse repurchase
agreements. These transactions are similar to borrowing cash. In a reverse
repurchase agreement, the Fund transfers possession of a portfolio instrument to
another person, such as a financial institution, broker, or dealer, in return
for a percentage of the instrument's market value in cash, and agrees that on a
stipulated date in the future the Fund will repurchase the portfolio instrument
by remitting the original consideration plus interest at an agreed upon rate.
The use of reverse repurchase agreements may enable the Fund to avoid selling
portfolio instruments at a time when a sale may be deemed to be disadvantageous,
but the ability to enter into reverse repurchase agreements does not ensure that
the Fund will be able to avoid selling portfolio instruments at a
disadvantageous time.
When effecting reverse repurchase agreements, liquid assets of the Fund, in
a dollar amount sufficient to make payment for the obligations to be purchased,
are segregated at the trade date. These securities are marked to market daily
and maintained until the transaction is settled.
Options
An option is a right to buy or sell a security for a specified price within a
limited time period. The option buyer pays the option seller (known as the
"writer") for the right to buy, which is a "call" option, or the right to sell,
which is a "put" option. Unless the option is terminated, the option seller must
then buy or sell the security at the agreed-upon price when asked to do so by
the option buyer.
The Fund may buy or sell put and call options on securities it holds or intends
to acquire, and may purchase put and call options for the purpose of offsetting
previously written put and call options of the same series. The Fund may also
buy and sell options on financial futures contracts. The Fund will use options
as a hedge against decreases or increases in the value of securities it holds or
intends to acquire.
The Fund may write only covered options. With regard to a call option, this
means that the Fund will own, for the life of the option, the securities subject
to the call option. The Fund will cover put options by holding, in a segregated
account, liquid assets having a value equal to or greater than the price of
securities subject to the put option. If the Fund is unable to effect a closing
purchase transaction with respect to the covered options it has sold, it will
not be able to sell the underlying securities or dispose of assets held in a
segregated account until the options expire or are exercised.
Futures Transactions
The Fund may enter into financial futures contracts and write options on
such contracts. The Fund intends to enter into such contracts and related
options for hedging purposes. The Fund will enter into futures on securities or
index-based futures contracts in order to hedge against changes in interest or
exchange rates or securities prices. A futures contract on securities is an
agreement to buy or sell securities at a specified price during a designated
month. A futures contract on a securities index does not involve the actual
delivery of securities, but merely requires the payment of a cash settlement
based on changes in the securities index. The Fund does not make payment or
deliver securities upon entering into a futures contract. Instead, it puts down
a margin deposit, which is adjusted to reflect changes in the value of the
contract and which continues until the contract is terminated.
The Fund may sell or purchase futures contracts. When a futures contract is
sold by the Fund, the value of the contract will tend to rise when the value of
the underlying securities declines and to fall when the value of such securities
increases. Thus, the Fund sells futures contracts in order to offset a possible
decline in the value of its securities.
If a futures contract is purchased by
the Fund, the value of the contract will tend to rise when the value of the
underlying securities increases and to fall when the value of such securities
declines. The Fund intends to purchase futures contracts in order to establish
what is believed by the investment advisor to be a favorable price or rate of
return for securities the Fund intends to purchase.
The Fund also intends to purchase put and call options on futures contracts
for hedging purposes. A put option purchased by the Fund would give it the right
to assume a position as the seller of a futures contract. A call option
purchased by the Fund would give it the right to assume a position as the
purchaser of a futures contract. The purchase of an option on a futures contract
requires the Fund to pay a premium. In exchange for the premium, the Fund
becomes entitled to exercise the benefits, if any, provided by the futures
contract, but is not required to take any action under the contract. If the
option cannot be exercised profitably before it expires, the Fund's loss will be
limited to the amount of the premium and any transaction costs.
The Fund may enter into closing purchase and sale transactions in order to
terminate a futures contract and may sell put and call options for the purpose
of closing out its options positions. The Fund's ability to enter into closing
transactions depends on the development and maintenance of a liquid secondary
market. There is no assurance that a liquid secondary market will exist for any
particular contract or at any particular time. As a result, there can be no
assurance that the Fund will be able to enter into an offsetting transaction
with respect to a particular contract at a particular time. If the Fund is not
able to enter into an offsetting transaction, the Fund will continue to be
required to maintain the margin deposits on the contract and to complete the
contract according to its terms, in which case it would continue to bear market
risk on the transaction.
Although futures and options transactions are intended to enable the Fund
to manage market, interest rate or exchange rate risk, unanticipated changes in
interest rates or market prices could result in poorer performance than if it
had not entered into these transactions. Even if the investment advisor
correctly predicts interest rate movements, a hedge could be unsuccessful if
changes in the value of the Fund's futures position did not correspond to
changes in the value of its investments. This lack of correlation between the
Fund's futures and securities positions may be caused by differences between the
futures and securities markets or by differences between the securities
underlying the Fund's futures position and the securities held by or to be
purchased for the Fund. The Fund's investment advisor will attempt to minimize
these risks through careful selection and monitoring of the Fund's futures and
options positions.
The Fund does not intend to use futures transactions for speculation or
leverage. The Fund has the ability to write options on futures, but currently
intends
to write such options only to close
out options purchased by the Fund. The Fund will not change these policies
without supplementing the information in the prospectus and SAI.
The Fund will not maintain open positions in futures contracts it has sold
or call options it has written on futures contracts if, in the aggregate, the
value of the open positions (marked to market) exceeds the current market value
of its securities portfolio plus or minus the unrealized gain or loss on those
open positions, adjusted for the correlation of volatility between the hedged
securities and the futures contracts. If this limitation is exceeded at any
time, the Fund will take prompt action to close out a sufficient number of open
contracts to bring its open futures and options positions within this
limitation.
"Margin in futures transactions unlike the purchase or sale of a
security, the Fund does not pay or
receive money upon the purchase or sale of a futures contract.
Rather the Fund is required to
deposit an amount of "initial margin" in cash or U.S. Treasury
bills with its custodian (or the broker,
if legally permitted). The nature of initial margin in futures transactions is
different from that of margin in securities transactions in that futures
contract initial margin does not involve the borrowing of funds by the Fund to
finance the transactions.
Initial margin is in the nature of a
performance bond or good faith deposit on the contract which is returned to the
Fund upon termination of the futures contract, assuming all contractual
obligations have been satisfied.
A futures contract held by the Fund is valued daily at the official
settlement price of the exchange on which it is traded. Each day the Fund pays
or receives cash, called "variation margin," equal to the daily change in value
of the futures contract. This process is known as "marking to market". Variation
margin does not represent a borrowing or loan by the Fund but is instead
settlement between the Fund and the broker of the amount one would owe the other
if the futures contract expired. In computing its daily net asset value the Fund
will mark-to-market its open futures positions. The Fund is also required to
deposit and maintain margin when it writes call options on futures contracts.
Foreign Securities
The Fund may invest in foreign securities or U.S. securities traded in
foreign markets. In addition to securities issued by foreign companies,
permissible investments may also consist of obligations of foreign branches of
U.S. banks and of foreign banks, including European certificates of deposit,
European time deposits, Canadian time deposits and Yankee certificates of
deposit. The Fund may also invest in Canadian commercial paper and Europaper.
These instruments may subject the Fund to investment risks that differ in some
respects from those related to investments in obligations of U.S. issuers. Such
risks include the possibility of adverse political and economic developments;
imposition of withholding taxes on interest or other income; seizure,
nationalization, or expropriation of foreign deposits; establishment of exchange
controls or taxation at the source; greater fluctuations in value due to changes
in exchange rates, or the adoption of other foreign governmental restrictions
which might adversely affect the payment of principal and interest on such
obligations. Such investments may also entail higher custodial fees and sales
commissions than domestic investments. Foreign issuers of securities or
obligations are often subject to accounting treatment and engage in business
practices different from those respecting domestic issuers of similar securities
or obligations. Foreign branches of U.S. banks and foreign banks may be subject
to less stringent reserve requirements than those applicable to domestic
branches of U.S. banks.
Foreign Currency Transactions
As one way of managing exchange rate risk, the Fund may enter into forward
currency exchange contracts (agreements to purchase or sell currencies at a
specified price and date). The exchange rate for the transaction (the amount of
currency the Fund will deliver and receive when the contract is completed) is
fixed when the Fund enters into the contract. The Fund usually will enter into
these contracts to stabilize the U.S. dollar value of a security it has agreed
to buy or sell. The Fund intends to use these contracts to hedge the U.S. dollar
value of a security it already owns, particularly if the Fund expects a decrease
in the value of the currency in which the foreign security is denominated.
Although the Fund will attempt to benefit from using forward contracts, the
success of its hedging strategy will depend on the investment advisor's ability
to predict accurately the future exchange rates between foreign currencies and
the U.S. dollar. The value of the Fund's investments denominated in foreign
currencies will depend on the relative strengths of those currencies and the
U.S. dollar, and the Fund may be affected favorably or unfavorably by changes in
the exchange rates or exchange control regulations between foreign currencies
and the U.S. dollar. Changes in foreign currency exchange rates also may affect
the value of dividends and interest earned, gains and losses realized on the
sale of securities and net investment income and gains, if any, to be
distributed to shareholders by the Fund. The Fund may also purchase and sell
options related to foreign currencies in connection with hedging strategies.
High Yield, High Risk Bonds
The Fund may invest a portion of its assets in lower rated bonds. Bonds rated
below BBB by Standard & Poor's Ratings Services ("S&P") or Fitch IBCA, Inc.
("Fitch") or below Baa by Moody's Investors Service, Inc. ("Moody's"), commonly
known as "junk bonds," offer high yields, but also high risk. While investment
in junk bonds provides opportunities to maximize return over time, they are
considered predominantly speculative with respect to the ability of the issuer
to meet principal and interest payments. Investors should be aware of the
following risks:
(1) The lower ratings of junk bonds reflect a greater possibility that
adverse changes in the financial condition of the issuer or in general economic
conditions, or both, or an unanticipated rise in interest rates may impair the
ability of the issuer to make payments of interest and principal, especially if
the issuer is highly leveraged. Such issuer's ability to meet its debt
obligations may also be adversely affected by the issuer's inability to meet
specific forecasts or the unavailability of additional financing. Also, an
economic downturn or an increase in interest rates may increase the potential
for default by the issuers of these securities.
(2) The value of junk bonds may be more susceptible to real or perceived
adverse economic or political events than is the case for higher quality bonds.
(3) The value of junk bonds, like those of other fixed income securities,
fluctuates in response to changes in interest rates, generally rising when
interest rates decline and falling when interest rates rise. For example, if
interest rates increase after a fixed income security is purchased, the
security, if sold prior to maturity, may return less than its cost. The prices
of junk bonds, however, are generally less sensitive to interest rate changes
than the prices of higher-rated bonds, but are more sensitive to news about an
issuer or the economy which is, or investors perceive as, negative.
(4) The secondary market for junk bonds may be less liquid at certain times
than the secondary market for higher quality bonds, which may adversely effect
(a) the bond's market price, (b) the Fund's ability to sell the bond and the
Fund's ability to obtain accurate market quotations for purposes of valuing its
assets.
For bond ratings descriptions, see "Corporate and Municipal Bond Ratings" below.
Illiquid and Restricted Securities
The Fund may not invest more than 15% of its net assets in securities that
are illiquid. A security is illiquid when the Fund cannot dispose of it in the
ordinary course of business within seven days at approximately the value at
which the Fund has the investment on its books.
The Fund may invest in "restricted" securities, i.e., securities subject to
restrictions on resale under federal securities laws. Rule 144A under the
Securities Act of 1933 ("Rule 144A") allows certain restricted securities to
trade freely among qualified institutional investors. Since Rule 144A securities
may have limited markets, the Board of Trustees will determine whether such
securities should be considered illiquid for the purpose of determining the
Fund's compliance with the limit on illiquid securities indicated above. In
determine the liquidity of Rule 144A securities, the Trustees will consider: (1)
the frequency of trades and quotes for the security; (2) the number of dealers
willing to purchase or sell the security and the number of other potential
buyers; (3) dealer undertakings to make a market in the security; and (4) the
nature of the security and the nature of the marketplace trades.
Investment in Other Investment Companies
The Fund may purchase the shares of other investment companies to the
extent permitted under the 1940 Act. Currently, the Fund may not (1) own more
than 3% of the outstanding voting stocks of another investment company, (2)
invest more than 5% of its assets in any single investment company, and (3)
invest more than 10% of its assets in investment companies. However, the Fund
may invest all of its investable assets in securities of a single open-end
management investment company with substantially the same fundamental investment
objectives, policies and limitations as the Fund.
Short Sales
A short sale is the sale of a security the Fund has borrowed. The Fund expects
to profit from a short sale by selling the borrowed security for more than the
cost of buying it to repay the lender. After a short sale is completed, the
value of the security sold short may rise. If that happens, the cost of buying
it to repay the lender may exceed the amount originally received for the sale by
the Fund.
The Fund may not make short sales of securities or maintain a short
position unless, at all times when a short position is open, it owns an equal
amount of such securities or of securities which, without payment of any further
consideration, are convertible into or exchangeable for securities of the same
issue as, and equal in amount to, the securities sold short. The Fund may effect
a short sale in connection with an underwriting in which the Fund is a
participant.
Municipal Bonds
The Fund may invest in municipal bonds of any state, territory or possession of
the United States ("U.S."), including the District of Columbia. The Fund may
also invest in municipal bonds of any political subdivision, agency or
instrumentality (e.g., counties, cities, towns, villages, districts,
authorities) of the U.S. or its possessions. Municipal bonds are debt
instruments issued by or for a state or local government to support its general
financial needs or to pay for special projects such as airports, bridges,
highways, public transit, schools, hospitals, housing and water and sewer works.
Municipal bonds may also may be issued to refinance public debt.
Municipal bonds are mainly divided between "general obligation" and
"revenue" bonds. General obligation bonds are backed by the full faith and
credit of governmental issuers with the power to tax. They are repaid from the
issuer's general revenues. Payment, however, may be dependent upon legislative
approval and may be subject to limitations on the issuer's taxing power.
Enforcement of payments due under general obligation bonds varies according to
the law applicable to the issuer. In contrast, revenue bonds are supported only
by the revenues generated by the project or facility.
The Fund may also invest in industrial development bonds. Such bonds are
usually revenue bonds issued to pay for facilities with a public purpose
operated by private corporations. The credit quality of industrial development
bonds is usually directly related to the credit standing of the owner or user of
the facilities. To qualify as a municipal bond, the interest paid on an
industrial development bond must qualify as fully exempt from federal income
tax. However, the interest paid on an industrial development bond may be subject
to the federal alternative minimum tax.
The yields on municipal bonds depend on such factors as market conditions,
the financial condition of the issuer and the issue's size, maturity date and
rating. Municipal bonds are rated by S&P, Moody's and Fitch. Such ratings,
however, are opinions, not absolute standards of quality. Municipal bonds with
the same maturity, interest rates and rating may have different yields, while
municipal bonds with the same maturity and interest rate, but different ratings,
may have the same yield. Once purchased by the Fund, a municipal bond may cease
to be rated or receive a new rating below the minimum required for purchase by
the Fund. Neither event would require the Fund to sell the bond, but the Fund's
investment advisor would consider such events in determining whether the Fund
should continue to hold it.
The ability of the Fund to achieve its investment objective depends upon
the continuing ability of issuers of municipal bonds to pay interest and
principal when due. Municipal bonds are subject to the provisions of bankruptcy,
insolvency and other laws affecting the rights and remedies of creditors. Such
laws extend the time for payment of principal and/or interest, and may otherwise
restrict the Fund's ability to enforce its rights in the event of default. Since
there is generally less information available on the financial condition of
municipal bond issuers compared to other domestic issuers of securities, the
Fund's investment advisor may lack sufficient knowledge of an issue's
weaknesses. Other influences, such as litigation, may also materially affect the
ability of an issuer to pay principal and interest when due. In addition, the
market for municipal bonds is often thin and can be temporarily affected by
large purchases and sales, including those by the Fund.
From time to time, Congress has considered restricting or eliminating the
federal income tax exemption for interest on municipal bonds. Such actions could
materially affect the availability of municipal bonds and the value of those
already owned by the Fund.
If such legislation were passed,
the Trust's Board of Trustees may recommend changes in the Fund's
investment objectives and
policies or dissolution of the Fund.
Loans of Securities
To generate income and offset expenses, the Fund may lend portfolio securities
to broker-dealers and other financial institutions. Loans of securities by a
Fund may not exceed 30% of the value of the Fund's total assets. While
securities are on loan, the borrower will pay the Fund any income accruing on
the security. The Fund may invest any collateral it receives in additional
portfolio securities, such as U.S. Treasury notes, certificates of deposit,
other high-grade, short-term obligations or interest bearing cash equivalents.
Gains or losses in the market value of a security lent will affect the Fund and
its shareholders.
When a Fund lends its securities, it will require the borrower to give the Fund
collateral in cash or government securities. The Fund will require collateral in
an amount equal to at least 100% of the current market value of the securities
lent, including accrued interest. The Fund have the right to call a loan and
obtain the securities lent any time on notice of not more than five business
days. The Fund may pay reasonable fees in connection with such loans.
Although voting rights attendant to securities lent pass to the borrower, the
Fund may call such loans at any time and may vote the securities if it believes
a material event affecting the investment is to occur. The Fund may experience a
delay in receiving additional collateral or in recovering the securities lent or
may even suffer a loss of rights in the collateral should the borrower of the
securities fail financially. The Fund may only make loans to borrowers deemed to
be of good standing, under standards approved by the Board of Trustees, when the
income to be earned from the loan justifies the attendant risks.
Master Demand Notes
Master demand notes are unsecured obligations that permit the investment of
fluctuating amounts by the Fund at varying rates of interest pursuant to direct
arrangements between the Fund, as lender, and the issuer, as borrower. Master
demand notes may permit daily fluctuations in the interest rate and daily
changes in the amounts borrowed. The Fund has the right to increase the amount
under the note at any time up to the full amount provided by the note agreement,
or to decrease the amount. The borrower may repay up to the full amount of the
note without penalty. The Fund permit the Fund to demand payment of principal
and accrued interest at any time (on not more than seven days' notice). Notes
acquired by the Fund may have maturities of more than one year, provided that
(1) the Fund is entitled to payment of principal and accrued interest upon not
more than seven days' notice, and (2) the rate of interest on such notes is
adjusted automatically at periodic intervals, which normally will not exceed 31
days, but may extend up to one year. The notes are deemed to have a maturity
equal to the longer of the period remaining to the next interest rate adjustment
or the demand notice period. Because these types of notes are direct lending
arrangements between the lender and borrower, such instruments are not normally
traded and there is no secondary market for these notes, although they are
redeemable and thus repayable by the borrower at face value plus accrued
interest at any time. Accordingly, the Fund's right to redeem is dependent on
the ability of the borrower to pay principal and interest on demand. In
connection with master demand note arrangements, a Fund investment advisor
considers, under standards established by the Board of Trustees, earning power,
cash flow and other liquidity ratios of the borrower and will monitor the
ability of the borrower to pay principal and interest on demand. These notes are
not typically rated by credit rating agencies. Unless rated, a Fund may invest
in them only if at the time of an investment the issuer meets the criteria
established for commercial paper discussed in this statement of additional
information (which limits such investments to commercial paper rated A-1 by S&P,
Prime-1 by Moody's or F-1 by Fitch.
Obligations of Foreign Branches of United States Banks
The obligations of foreign branches of U.S. banks may be general obligations of
the parent bank in addition to the issuing branch, or may be limited by the
terms of a specific obligation and by government regulation. Payment of interest
and principal upon these obligations may also be affected by governmental action
in the country of domicile of the branch (generally referred to as sovereign
risk). In addition, evidences of ownership of such securities may be held
outside the U.S. and the Fund may be subject to the risks associated with the
holding of such property overseas. Examples of governmental actions would be the
imposition of currency controls, interest limitations, withholding taxes,
seizure of assets or the declaration of a moratorium. Various provisions of
federal law governing domestic branches do not apply to foreign branches of
domestic banks.
Obligations of United States Branches of Foreign Banks
Obligations of U.S. branches of foreign banks may be general obligations of the
parent bank in addition to the issuing branch, or may be limited by the terms of
a specific obligation and by federal and state regulation as well as by
governmental action in the country in which the foreign bank has its head
office. In addition, there may be less publicly available information about a
U.S. branch of a foreign bank than about a domestic bank.
Payment-in-kind Securities
Payment-in-kind ("PIK") securities pay interest in either cash or additional
securities, at the issuer's option, for a specified period. The issuer's option
to pay in additional securities typically ranges from one to six years, compared
to an average maturity for all PIK securities of eleven years. Call protection
and sinking fund features are comparable to those offered on traditional debt
issues.
PIKs, like zero coupon bonds, are designed to give an issuer flexibility in
managing cash flow. Several PIKs are senior debt. In other cases, where PIKs are
subordinated, most senior lenders view them as equity equivalents.
An advantage of PIKs for the issuer -- as with zero coupon securities -- is that
interest payments are automatically compounded (reinvested) at the stated coupon
rate, which is not the case with cash-paying securities. However, PIKs are
gaining popularity over zeros since interest payments in additional securities
can be monetized and are more tangible than accretion of a discount.
As a group, PIK bonds trade flat (i.e., without accrued interest). Their price
is expected to reflect an amount representing accredit interest since the last
payment. PIKs generally trade at higher yields than comparable cash-paying
securities of the same issuer. Their premium yield is the result of the lesser
desirability of non-cash interest, the more limited audience for non-cash paying
securities, and the fact that many PIKs have been issued to equity investors who
do not normally own or hold such securities.
Calculating the true yield on a PIK security requires a discounted cash flow
analysis if the security (ex interest) is trading at a premium or a discount
because the realizable value of additional payments is equal to the current
market value of the underlying security, not par.
Regardless of whether PIK securities are senior or deeply subordinated, issuers
are highly motivated to retire them because they are usually their most costly
form of capital.
Zero Coupon "Stripped" Bonds
A zero coupon "stripped" bond represents ownership in serially maturing interest
payments or principal payments on specific underlying notes and bonds, including
coupons relating to such notes and bonds. The interest and principal payments
are direct obligations of the issuer. Coupon zero coupon bonds of any series
mature periodically from the date of issue of such series through the maturity
date of the securities related to such series. Principal zero coupon bonds
mature on the date specified therein, which is the final maturity date of the
related securities. Each zero coupon bond entitles the holder to receive a
single payment at maturity. There are no periodic interest payments on a zero
coupon bond. Zero coupon bonds are offered at discounts from their face amounts.
In general, owners of zero coupon bonds have substantially all the rights and
privileges of owners of the underlying coupon obligations or principal
obligations. Owners of zero coupon bonds have the right upon default on the
underlying coupon obligations or principal obligations to proceed directly and
individually against the issuer and are not required to act in concert with
other holders of zero coupon bonds.
For federal income tax purposes, a purchaser of principal zero coupon bonds or
coupon zero coupon bonds (either initially or in the secondary market) is
treated as if the buyer had purchased a corporate obligation issued on the
purchase date with an original issue discount equal to the excess of the amount
payable at maturity over the purchase price. The purchaser is required to take
into income each year as ordinary income an allocable portion of such discounts
determined on a "constant yield" method. Any such income increases the holder's
tax basis for the zero coupon bond, and any gain or loss on a sale of the zero
coupon bonds relative to the holder's basis, as so adjusted, is a capital gain
or loss. If the holder owns both principal zero coupon bonds and coupon zero
coupon bonds representing interest in the same underlying issue of securities, a
special basis allocation rule (requiring the aggregate basis to be allocated
among the items sold and retained based on their relative fair market value at
the time of sale) may apply to determine the gain or loss on a sale of any such
zero coupon bonds.
Mortgage-Backed or Asset-Backed Securities
The Fund may invest in mortgage-backed securities and asset-backed securities.
Two principal types of mortgage-backed securities are collateralized mortgage
obligations ("CMOs") and real estate mortgage investment conduits ("REMICs").
CMOs are securities collateralized by mortgages, mortgage pass-throughs,
mortgage pay-through bonds (bonds representing an interest in a pool of
mortgages where the cash flow generated from the mortgage collateral pool is
dedicated to bond repayment), and mortgage-backed bonds (general obligations of
the issuers payable out of the issuers' general funds and additionally secured
by a first lien on a pool of single family detached properties). Many CMOs are
issued with a number of classes or series which have different maturities and
are retired in sequence.
Investors purchasing CMOs in the shortest maturities receive or are credited
with their pro rata portion of the scheduled payments of interest and principal
on the underlying mortgages plus all unscheduled prepayments of principal up to
a predetermined portion of the total CMO obligation. Until that portion of such
CMO obligation is repaid, investors in the longer maturities receive interest
only. Accordingly, the CMOs in the longer maturity series are less likely than
other mortgage pass-throughs to be prepaid prior to their stated maturity.
Although some of the mortgages underlying CMOs may be supported by various types
of insurance, and some CMOs may be backed by GNMA certificates or other mortgage
pass-throughs issued or guaranteed by U.S. government agencies or
instrumentalities, the CMOs themselves are not generally guaranteed.
REMICs, which were authorized under the Tax Reform Act of 1986, are private
entities formed for the purpose of holding a fixed pool of mortgages secured by
an interest in real property. REMICs are similar to CMOs in that they issue
multiple classes of securities.
In addition to mortgage-backed securities, the Fund may invest in securities
secured by other assets including company receivables, truck and auto loans,
leases, and credit card receivables. These issues may be traded over-the-counter
and typically have a short-intermediate maturity structure depending on the pay
down characteristics of the underlying financial assets which are passed through
to the security holder.
Credit card receivables are generally unsecured and the debtors are entitled to
the protection of a number of state and federal consumer credit laws, many of
which give such debtors the right to set off certain amounts owed on the credit
cards, thereby reducing the balance due. Most issuers of asset-backed securities
backed by automobile receivables permit the servicers of such receivables to
retain possession of the underlying obligations. If the services were to sell
these obligations to another party, there is a risk that the purchaser would
acquire an interest superior to that of the holders of the rated asset-backed
securities. In addition, because of the large number of vehicles involved in a
typical issuance and technical requirements under state laws, the trustee for
the holders of asset-backed securities backed by automobile receivables may not
have a proper security interest in all of the obligations backing such
receivables. Therefore, there is the possibility that recoveries on repossessed
collateral may not, in some cases, be available to support payments on these
securities.
In general, issues of asset-backed securities are structured to include
additional collateral and/or additional credit support to protect against the
risk that a portion of the collateral supporting the asset-backed securities may
default and/or may suffer from these defects. In evaluating the strength of
particular issues of asset-backed securities, the investment advisor considers
the financial strength of the guarantor or other provider of credit support, the
type and extent of credit enhancement provided as well as the documentation and
structure of the issue itself and the credit support.
Variable or Floating Rate Instruments
The Fund may invest in variable or floating rate instruments which may involve a
demand feature and may include variable amount master demand notes which may or
may not be backed by bank letters of credit. Variable or floating rate
instruments bear interest at a rate which varies with changes in market rates.
The holder of an instrument with a demand feature may tender the instrument back
to the issuer at par prior to maturity. A variable amount master demand note is
issued pursuant to a written agreement between the issuer and the holder, its
amount may be increased by the holder or decreased by the holder or issuer, it
is payable on demand, and the rate of interest varies based upon an agreed
formula. The quality of the underlying credit must, in the opinion of the
investment advisor, be equivalent to the long-term bond or commercial paper
ratings applicable to permitted investments for each Fund. The investment
advisor will monitor, on an ongoing basis, the earning power, cash flow, and
liquidity ratios of the issuers of such instruments and will similarly monitor
the ability of an issuer of a demand instrument to pay principal and interest on
demand.
Virgin Islands, Guam and Puerto Rico
The Fund may invest in obligations of the governments of the Virgin Islands,
Guam and Puerto Rico to the extent such obligations are exempt from the income
or intangibles taxes, as applicable, of the state for which the Fund is named.
The Fund does not presently intend to invest more than (a) 5% of its net assets
in the obligations of each of the Virgin Islands and Guam or (b) 25% of its net
assets in the obligations of Puerto Rico. Accordingly, the Fund may be adversely
affected by local political and economic conditions and developments within the
Virgin Islands, Guam and Puerto Rico affecting the issuers of such obligations.
PURCHASE, REDEMPTION AND PRICING OF SHARES
You may buy shares of the Fund through the Distributor, broker-dealers
that have entered into special agreements with the Distributor or certain other
financial institutions. The Fund offers up to different classes of shares that
differ primarily with respect to sales charges and distribution fees. Depending
upon the class of shares, you will pay an initial sales charge when you buy the
Fund's shares, a contingent deferred sales charge (a "CDSC") when you redeem the
Fund's shares or no sales charges at all.
Class A Shares
With certain exceptions, when you purchase Class A shares you will pay a
maximum sales charge of 4.75%. The prospectus contains a complete table of
applicable sales charges and a discussion of sales charge reductions or waivers
that may apply to purchases. If you purchase Class A shares in the amount of $1
million or more, without an initial sales charge, the Fund will charge a CDSC of
1.00% if you redeem during the month of your purchase or the 12-month period
following the month of your purchase (see "Contingent Deferred Sales Charge"
below).
Class B Shares
The Fund offers Class B shares at net asset value without an initial sales
charge. With certain exceptions, however, the Fund will charge a CDSC on shares
you redeem within 72 months after the month of your purchase, in accordance with
the following schedule:
REDEMPTION TIME CDSC RATE
Month of purchase and the first 12-month period following the month of purchase.
.................................................5.00%
Second 12-month period following the month of
purchase........................4.00%
Third 12-month period following the month of
purchase...........................3.00%
Fourth 12-month period following the month of
purchase.........................3.00%
Fifth 12-month period following the month of
purchase............................2.00%
Sixth 12-month period following the month of
purchase...........................1.00%
Thereafter........................................................
...................................0.00%
Class B shares that have been outstanding for seven years after the month of
purchase will automatically convert to Class A shares without imposition of a
front-end sales charge or exchange fee. Conversion of Class B shares represented
by stock certificates will require the return of the stock certificate to ESC.
Class C Shares
Class C shares are available only through broker-dealers who have entered into
special distribution agreements with the Distributor. The Fund offers Class C
shares at net asset value without an initial sales charge. With certain
exceptions, however, the Fund will charge a CDSC of 1.00% on shares you redeem
within 12-months after the month of your purchase. See "Contingent Deferred
Sales Charge" below.
Class Y Shares
No CDSC is imposed on the redemption of Class Y shares. Class Y shares are
not offered to the general public and are available only to (1) persons who at
or prior to December 31, 1994 owned shares in a mutual fund advised by (2)
certain institutional investors and (3) investment advisory clients of CMG,
EAMC, EIMC, Meridian Investment Company, First International Advisors, Ltd., or
their affiliates. Class Y shares are offered at net asset value without a
front-end or back-end sales charge and do not bear any Rule 12b-1 distribution
expenses.
INSTITUTIONAL SHARES, INSTITUTIONAL SERVICE SHARES AND CHARITABLE
SHARES
Each institutional class of shares is sold without a front-end sales charge
or contingent deferred sales charge. Institutional Service shares pay an ongoing
service fee. The minimum initial investment in any institutional class of shares
is $1 million, which may be waived in certain circumstances. There is no minimum
amount required for subsequent purchases.
Contingent Deferred Sales Charge
The Fund charges a CDSC as reimbursement for certain expenses, such as
commissions or shareholder servicing fees, that it has incurred in connection
with the sale of its shares (see "Distribution Expenses Under Rule 12b-1,"
below). Institutional, Institutional Service and Charitable shares do not charge
a CDSC. If imposed, the Fund deducts the CDSC from the redemption proceeds you
would otherwise receive. The CDSC is a percentage of the lesser of (1) the net
asset value of the shares at the time of redemption or (2) the shareholder's
original net cost for such shares. Upon request for redemption, to keep the CDSC
a shareholder must pay as low as possible, the Fund will first seek to redeem
shares not subject to the CDSC and/or shares held the longest, in that order.
The CDSC on any redemption is, to the extent permitted by the National
Association of Securities Dealers, Inc. ("NASD"), paid to the Distributor or its
predecessor.
SALES CHARGE WAIVERS AND REDUCTIONS
The following information is not applicable to the Institutional,
Institutional Service and Charitable shares. With a larger purchase, there are
several ways that you can combine multiple purchases of Class A shares in
Evergreen Funds and take advantage
of lower sales charges.
Combined Purchases
You can reduce your sales charge by combining purchases of Class A shares
of multiple Evergreen Funds. For example, if you invested $75,000 in each of two
different Evergreen Funds, you would pay a sales charge based on a $150,000
purchase (i.e., 3.75% of the offering price, rather than 4.75%).
Rights of Accumulation
You can reduce your sales charge by adding the value of Class A shares of
Evergreen Funds you already own to the amount of your next Class A investment.
For example, if you hold Class A
shares valued at $99,999 and purchase an additional $5,000, the sales charge for
the $5,000 purchase would be at the next lower sales charge of 3.75%, rather
than 4.75%.
Your account, and therefore your rights of accumulation, can be linked to
immediate family members which includes father and mother, brothers and sisters,
and sons and daughters. The same rule applies with respect to individual
retirement plans. Please note, however, that retirement plans involving
employees stand alone and do not pass on rights of accumulation.
Letter of Intent
You can, by completing the "Letter of Intent" section of the application,
purchase Class A shares over a 13-month period and receive the same sales charge
as if you had invested all the money at once. All purchases of Class A shares of
an Evergreen Fund during the period will qualify as Letter of Intent purchases.
Waiver of Initial Sales Charges
The Fund may sell its shares at net asset value without an initial sales
charge to:
1. purchasers of shares in the amount of $1 million or
more;
2. a corporate or certain other qualified retirement plan or a
non-qualified deferred compensation plan or a Title 1 tax-sheltered annuity or
TSA plan sponsored by an organization having 100 or more eligible employees (a
"Qualifying Plan") or a TSA plan sponsored by a public educational entity having
5,000 or more eligible employees (an "Educational TSA Plan");
3. institutional investors, which may include bank trust
departments and registered
investment advisors;
4. investment advisors, consultants or financial planners who place trades
for their own accounts or the accounts of their clients and who charge such
clients a management, consulting, advisory or other fee;
5. clients of investment advisors or financial planners who place trades
for their own accounts if the accounts are linked to a master account of such
investment advisors or financial planners on the books of the broker-dealer
through whom shares are purchased;
6. institutional clients of broker-dealers, including retirement and
deferred compensation plans and the trusts used to fund these plans, which place
trades through an omnibus account maintained with the Fund by the broker-dealer;
7. employees of First Union National Bank ("FUNB"), its affiliates, the
Distributor, any broker-dealer with whom the Distributor, has entered into an
agreement to sell shares of the Fund, and members of the immediate families of
such employees;
8. certain Directors, Trustees, officers and employees of
the Evergreen Funds, the
Distributor or their affiliates and to the immediate families of
such persons; or
9. a bank or trust company in a single account in the name of such bank or
trust company as Trustee if the initial investment in or any Evergreen fund made
pursuant to this waiver is at least $500,000 and any commission paid at the time
of such purchase is not more than 1% of the amount invested.
With respect to items 8 and 9 above, the Fund will only sell shares to
these parties upon the purchasers written assurance that the purchase is for
their personal investment purposes only. Such purchasers may not resell the
securities except through redemption by the Fund. The Fund will not charge any
CDSC on redemptions by such purchasers.
Waiver of CDSCS
The Fund does not impose a CDSC when the shares you are redeeming
represent:
1. an increase in the share value above the net cost of
such shares;
2. certain shares for which the Fund did not pay a commission on issuance,
including shares acquired through reinvestment of dividend income and capital
gains distributions;
3. shares that are in the accounts of a shareholder who has
died or become disabled;
4. a lump-sum distribution from a 401(k) plan or other benefit plan
qualified under the Employee Retirement Income Security Act of 1974 ("ERISA");
5. an automatic withdrawal from the ERISA plan of a
shareholder who is a least
59 years old;
6. shares in an account that we have closed because the
account has an aggregate net
asset value of less than $1,000;
7. an automatic withdrawal under an Systematic Income Plan
of up to 1.0% per month
of your initial account balance;
8. a withdrawal consisting of loan proceeds to a retirement
plan participant;
9. a financial hardship withdrawal made by a retirement
plan participant;
10. a withdrawal consisting of returns of excess
contributions or excess deferral
amounts made to a retirement plan; or
11. a redemption by an individual participant in a Qualifying Plan that
purchased Class C shares (this waiver is not available in the event a Qualifying
Plan, as a whole,
redeems substantially all of its assets).
Exchanges
Investors may exchange shares of the Fund for shares of the same class of any
other Evergreen fund other that the Evergreen Select Funds. Shares of any class
of the Evergreen Select Funds may be exchanged for the same class of shares of
any other Evergreen Select Fund. See "By Exchange" under "How to Buy Shares" in
the prospectus. Before you make an exchange, you should read the prospectus of
the Evergreen fund into which you want to exchange. The Trust's Board of
Trustees reserves the right to discontinue, alter or limit the exchange
privilege at any time.
Automatic Reinvestment
As described in the prospectus, a shareholder may elect to receive
dividends and capital gains distributions in cash instead of shares. However,
ESC will automatically reinvest all dividends and distributions in additional
shares when it learns that the postal or other delivery service is unable to
deliver checks or transaction confirmations to the shareholder's address of
record. When a check is returned, the Fund will hold the check amount in a
no-interest account in the shareholder's name until the shareholder updates his
or her address or automatic reinvestment begins. Uncashed or returned redemption
checks will also be handled in the manner described above.
Calculation of Net Asset Value
The Fund calculates its net asset value ("NAV") once daily on
Monday through Friday, as
described in the prospectus. The Fund will not compute its NAV on
the day the following legal
holidays are observed: New Year's Day, Martin Luther King Day,
Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day and
Christmas Day.
The NAV of the Fund is calculated by dividing the value of the Fund's net
assets attributable to that class by all of the shares issued for that class.
Valuation of Portfolio Securities
Current values for the Fund's portfolio securities are determined as
follows:
(1) Securities that are traded on an established securities exchange or the
over-the-counter National Market System ("NMS") are valued on the basis of the
last sales price on the exchange where primarily traded or on the NMS prior to
the time of the valuation, provided that a sale has occurred.
(2) Securities traded on an established securities exchange or in the
over-the-counter market for which there has been no sale and other securities
traded in the over-the-counter market are valued at the mean of the bid and
asked prices at the time of valuation.
(3) Short-term investments maturing in more than 60 days, for which market
quotations are readily available, are valued at current market value.
(4) Short-term investments maturing in sixty days or less are valued at
amortized cost, which approximates market.
(5) Securities, including restricted securities, for which market quotations are
not readily available; listed securities or those on NMS if, in the Fund's
opinion, the last sales price does not reflect a current market value; and other
assets are valued at prices deemed in good faith to be fair under procedures
established by the Board of Trustees.
PERFORMANCE CALCULATIONS
Total Return
Total return quotations for a class of shares of the Fund as they may appear
from time to time in advertisements are calculated by finding the average annual
compounded rates of return over one, five and ten year periods, or the time
periods for which such class of shares has been effective, whichever is
relevant, on a hypothetical $1,000 investment that would equate the initial
amount invested in the class to the ending redeemable value. To the initial
investment all dividends and distributions are added, and all recurring fees
charged to all shareholder accounts are deducted. The ending redeemable value
assumes a complete redemption at the end of the relevant periods. The following
is the formula used to calculate average annual total return:
n
P(1+T)=ERV
P= initial payment of $1,000
T= average total return
n= number of years
ERV=ending redeemable value of the initial $1,000
CURRENT, EFFECTIVE AND TAX-EQUIVALENT YIELDS
The Fund may quote a "current yield" or "effective yield" from time to
time. The current yield is an annualized yield based on the actual total return
for a seven-day period. The effective yield is an annualized yield based on a
compounding of the current yield. These yields are each computed by first
determining the net change in account value for a hypothetical account having a
share balance of one share at the beginning of a seven-day period (shown as
"beginning account value" in the formula below), excluding capital changes. The
net change in account value will generally equal the total dividends declared
with respect to the account. The yields are then computed as follows:
Current Yield = Beginning Account Value x 365/7
Effective Yield = [(1 + Total Dividend for 7 days) 365/7]-1
Yield fluctuations may reflect changes in the Fund's net investment income.
Portfolio changes resulting from net purchases or net redemptions of the Fund's
shares may also affect the yield. Accordingly, the Fund's yield may vary from
day to day. The yield stated for a particular past period is not necessarily
representative of its future yield. Since the Fund uses the amortized cost
method of net asset value computation, it does not anticipate any change in
yield resulting from unrealized gains or losses or unrealized appreciation or
depreciation not reflected in the yield computation, or change in net asset
value during the period used for computing yield. If any of these conditions
should occur, yield quotations would be suspended. The Fund's yield is not
guaranteed, and the principal is not insured.
Yield information is useful in reviewing the Fund's performance, but
because yields fluctuate, such information cannot necessarily be used to compare
an investment in the Fund's shares with bank deposits, savings accounts and
similar investment alternatives which often provide an agreed or guaranteed
fixed yield for a stated period of time. Shareholders should remember that yield
is a function of (1) the kind and quality of the instruments the Fund holds, (2)
portfolio maturity, (3) operating expenses and (4) market conditions.
In periods of declining interest rates, yields will tend to be somewhat
higher than prevailing market rates. In periods of rising interest rates, yields
will tend to be somewhat lower. Also, when interest rates are falling, the
inflow of net new money to the Fund from the continuous sale of its shares will
likely be invested in instruments producing lower yields than the balance of the
Fund's investments, thereby reducing the current yield of the Fund. In periods
of rising interest rates, the opposite can be expected to occur.
A tax-equivalent yield is calculated, reflecting the rate an investor would
need to earn from a fully taxable investment to equal the yield the Fund would
provide after federal taxes. The following formula is used:
Tax-Equivalent Yield = Effective Yield
----------------------------
1 - Federal Tax Rate
PRINCIPAL UNDERWRITER
The Distributor is the principal underwriter for the Trust and with respect
to each class of shares of the Fund. The Trust has entered into a Principal
Underwriting Agreement ("Underwriting Agreement") with the Distributor with
respect to each class of the Fund. The Distributor is a subsidiary of The BISYS
Group, Inc.
The Distributor, as agent, has agreed to use its best efforts to find
purchasers for the shares. The Distributor may retain and employ representatives
to promote distribution of the shares and may obtain orders from broker-dealers,
and others, acting as principals, for sales of shares to them. The Underwriting
Agreement provides that the Distributor will bear the expense of preparing,
printing, and distributing advertising and sales literature and prospectuses
used by it.
All subscriptions and sales of shares by the Distributor are at the public
offering price of the shares, which is determined in accordance with the
provisions of the Trust's Declaration of Trust, By-Laws, current prospectuses
and SAI. All orders are subject to acceptance by the Fund and the Fund reserves
the right, in its sole discretion, to reject any order received. Under the
Underwriting Agreement, the Fund is not liable to anyone for failure to accept
any order.
The Distributor has agreed that it will, in all respects,
duly conform with all state and federal
laws applicable to the sale of the shares. The Distributor has
also agreed that it will indemnify and
hold harmless the Trust and each person who has been, is, or may be a Trustee or
officer of the Trust against expenses reasonably incurred by any of them in
connection with any claim, action, suit, or proceeding to which any of them may
be a party that arises out of or is alleged to arise out of any
misrepresentation or omission to state a material fact on the part of the
Distributor or any other person for whose acts the Distributor is responsible or
is alleged to be responsible, unless such misrepresentation or omission was made
in reliance upon written information furnished by the Trust.
The Underwriting Agreement provides that it will remain in effect as long
as its terms and continuance are approved annually (I) by a vote of a majority
of the Trust's Trustees who are not interested persons of the Fund, as defined
in the 1940 Act (the "Independent Trustees"), and (ii) by vote of a majority of
the Trust's Trustees, in each case, cast in person at a meeting called for that
purpose.
The Underwriting Agreement may be terminated, without penalty, on 60 days'
written notice by the Board of Trustees or by a vote of a majority of
outstanding shares subject to such agreement. The Underwriting Agreement will
terminate automatically upon its "assignment," as that term is defined in the
1940 Act.
From time to time, if, in the Distributor's judgment, it could benefit the
sales of shares, the Distributor may provide to selected broker-dealers
promotional materials and selling aids, including, but not limited to, personal
computers, related software, and data files.
DISTRIBUTION EXPENSES UNDER RULE 12b-1
The Fund bears some of the costs of selling its Class A, Class B, and, when
applicable, Class C shares, or Institutional Service shares, including certain
advertising, marketing and shareholder service expenses, pursuant to Rule 12b-1
of the 1940 Act. These "12b-1 fees" or "distribution fees" are indirectly paid
by the shareholder, as shown by the Fund's expense table in the prospectus.
Under the Distribution Plans (each a "Plan," together, the "Plans") that the
Fund has adopted for its, Class A, Class B, and, when applicable, Class C
shares, or Institutional Service shares, the Fund may incur expenses for
distribution costs up to a maximum annual percentage of the average daily net
assets attributable to a class, as follows:
Class A
0.75%*
Class B
1.00%
Class C
1.00%
Institutional Service
0.35%*
*Currently limited to 0.25% or less. See the expense table in the
prospectus
of the Fund in which you are interested.
Of the amounts above, each class may pay under its Plan a maximum service fee of
0.25% to compensate organizations, which may include the Fund's investment
advisor or its affiliates, for personal services provided to shareholders and
the maintenance of shareholder accounts. The Fund may not, during any fiscal
period, pay distribution or service fees greater than the amounts above.
Amounts paid under the Plans are used to compensate the Distributor pursuant to
Distribution Agreements (each an "Agreement," together, the "Agreements") that
the Fund has entered into with respect to its Class A, Class B and, if
applicable, Class C shares. The compensation is based on a maximum annual
percentage of the average daily net assets attributable to a class, as follows:
Class A
0.25%*
Class B
1.00%
Class C
1.00%
*May be lower. See the expense table in the prospectus of the Fund
in which
you are interested.
The Agreements provide that the Distributor will use the distribution fees
received from the Fund for the following purposes:
(1) to compensate broker-dealers or other persons for
distributing Fund shares;
(2) to compensate broker-dealers, depository institutions and other financial
intermediaries for providing administrative, accounting and other services with
respect to the Fund's shareholders; and
(3) to otherwise promote the sale of Fund shares.
The Agreements also provide that the Distributor may use distribution fees to
make interest and principal payments in respect of amounts that have been
financed to pay broker-dealers or other persons for distributing Fund shares.
The Distributor may assign its rights to receive compensation under the Plans to
secure such financings. FUNB or its affiliates may finance payments made by the
Distributor to compensate broker-dealers or other persons for distributing
shares of the Fund.
In the event the Fund acquires the assets of another mutual fund, compensation
paid to the Distributor under the Agreements may be paid by the Fund's
Distributor to the acquired fund's distributor or its predecessor.
Since the Distributor's compensation under the Agreements is not directly tied
to the expenses incurred by the Distributor, the compensation received by it
under the Agreements during any fiscal year may be more or less than its actual
expenses and may result in a profit to the Distributor. Distribution expenses
incurred by the Distributor in one fiscal year that exceed the compensation paid
to the Distributor for that year may be paid from distribution fees received
from the Fund in subsequent fiscal years.
Distribution fees are accrued daily and paid at least monthly on Class A,
Class B and Class C shares and are charged as class expenses, as accrued. The
distribution fees attributable to the Class B and Class C shares are designed to
permit an investor to purchase such shares through broker-dealers without the
assessment of a front-end sales charge, while at the same time permitting the
Distributor to compensate broker-dealers in connection with the sale of such
shares. In this regard, the purpose and function of the combined contingent
deferred sales charge and distribution services fee on the Class B shares are
the same as those of the front-end sales charge and distribution fee with
respect to the Class A shares in that in each case the sales charge and/or
distribution fee provide for the financing of the distribution of the Fund's
shares.
Under the Plans, the Treasurer of the Trust reports the amounts expended
under the Plans and the purposes for which such expenditures were made to the
Trustees of the Trust for their review on a quarterly basis. Also, each Plan
provides that the selection and nomination of the Independent Trustees are
committed to the discretion of such Independent Trustees then in office.
The investment advisor may from time to time from its own funds or such
other resources as may be permitted by rules of the Securities and Exchange
Commission ("SEC") make payments for distribution services to the Distributor;
the latter may in turn pay part or all of such compensation to brokers or other
persons for their distribution assistance.
Each Plan and the Agreement will continue in effect for successive 12-month
periods provided, however, that such continuance is specifically approved at
least annually by the Trustees of the Trust or by vote of the holders of a
majority of the outstanding voting securities of that class and, in either case,
by a majority of the Independent Trustees of the Trust.
The Plans permit the payment of fees to brokers and others for distribution
and shareholder-related administrative services and to broker-dealers,
depository institutions, financial intermediaries and administrators for
administrative services as to Class A, Class B, Class C and Institutional
Service shares. The Plans are designed to (i) stimulate brokers to provide
distribution and administrative support services to the Fund and holders of
Class A, Class B, Class C and Institutional Service shares and (ii) stimulate
administrators to render administrative support services to the Fund and holders
of Class A, Class B, Class C and Institutional shares. The administrative
services are provided by a representative who has knowledge of the shareholder's
particular circumstances and goals, and include, but are not limited to
providing office space, equipment, telephone facilities, and various personnel
including clerical, supervisory, and computer, as necessary or beneficial to
establish and maintain shareholder accounts and records; processing purchase and
redemption transactions and automatic investments of client account cash
balances; answering routine client inquiries regarding Class A, Class B, Class C
and Institutional Service shares; assisting clients in changing dividend
options, account designations, and addresses; and providing such other services
as the Fund reasonably requests for its Class A, Class B, Class C and
Institutional Service shares.
In the event that the Plan or Distribution Agreement is terminated or not
continued with respect to one or more classes of the Fund, (i) no distribution
fees (other than current amounts accrued but not yet paid) would be owed by the
Fund to the Distributor with respect to that class or classes, and (ii) the Fund
would not be obligated to pay the Distributor for any amounts expended under the
Distribution Agreement not previously recovered by the Distributor from
distribution services fees in respect of shares of such class or classes through
deferred sales charges.
All material amendments to any Plan or Agreement must be approved by a vote
of the Trustees of the Trust or the holders of the Fund's outstanding voting
securities, voting separately by class, and in either case, by a majority of the
Independent Trustees, cast in person at a meeting called for the purpose of
voting on such approval; and any Plan or Distribution Agreement may not be
amended in order to increase materially the costs that a particular class of
shares of the Fund may bear pursuant to the Plan or Distribution Agreement
without the approval of a majority of the holders of the outstanding voting
shares of the class affected. Any Plan or Distribution Agreement may be
terminated (I) by the Fund without penalty at any time by a majority vote of the
holders of the outstanding voting securities of the Fund, voting separately by
class or by a majority vote of the Independent Trustees, or (ii) by the
Distributor. To terminate any Distribution Agreement, any party must give the
other parties 60 days' written notice; to terminate a Plan only, the Fund need
give no notice to the Distributor. Any Distribution Agreement will terminate
automatically in the event of its assignment. For more information about 12b-1
fees, see "Expenses" in the prospectus and "12b-1 Fees" under "Expenses" in Part
1 of this SAI.
TAX INFORMATION
Requirements for Qualifications as a Regulated Investment Company
The Fund intends to qualify for and elect the tax treatment applicable to
regulated investment companies ("RIC") under Subchapter M of the Internal
Revenue Code of 1986, as amended (the "Code"). If the (Such qualification does
not involve supervision of management or investment practices or policies by the
Internal Revenue Service.)
In order to qualify as a RIC, the
Fund must, among other things, (I) derive at least 90% of its gross income from
dividends, interest, payments with respect to proceeds from securities loans,
gains from the sale or other disposition of securities or foreign currencies and
other income (including gains from options, futures or forward contracts)
derived with respect to its business of investing in such securities; and (ii)
diversify its holdings so that, at the end of each quarter of its taxable year,
(a) at least 50% of the market value of the Fund's total assets is represented
by cash, U.S. government securities and other securities limited in respect of
any one issuer, to an amount not greater than 5% of the Fund's total assets and
10% of the outstanding voting securities of such issuer, and (b) not more than
25% of the value of its total assets is invested in the securities of any one
issuer (other than U.S. government securities and securities of other regulated
investment companies). By so qualifying, the Fund is not subject to federal
income tax if it timely distributes its investment company taxable income and
any net realized capital gains. A 4% nondeductible excise tax will be imposed on
the Fund to the extent it does not meet certain distribution requirements by the
end of each calendar year. The Fund anticipates meeting such distribution
requirements.
Taxes on Distributions
Unless the Fund is a municipal bond fund, distributions will be taxable to
shareholders whether made in shares or in cash. Shareholders electing to receive
distributions in the form of additional shares will have a cost basis for
federal income tax purposes in each share so received equal to the net asset
value of a share of the Fund on the reinvestment date.
To calculate ordinary income for federal income tax purposes, shareholders
must generally include dividends paid by the Fund from its investment company
taxable income (net taxable investment income plus net realized short-term
capital gains, if any). The Fund will include dividends it receives from
domestic corporations when the Fund calculates its gross investment income.
Unless the Fund is a municipal bond fund or U.S. Treasury money market fund, it
anticipates that all or a portion of the ordinary dividends which it pays will
qualify for the 70% dividends-received deduction for corporations. The Fund will
inform shareholders of the amounts that so qualify. If the Fund is a municipal
bond fund or U.S. Treasury money market fund, none of its income will consist of
corporate dividends; therefore, none of its distributions will qualify for the
70% dividends-received deduction for corporations.
From time to time, the Fund will distribute the excess of its net long-term
capital gains over its short-term capital loss to shareholders (i.e., capital
gain dividends). For federal tax purposes, shareholders must include such
capital gain dividends when calculating their net long-term capital gains.
Capital gain dividends are taxable as net long-term capital gains to a
shareholder, no matter how long the shareholder has held the shares.
Distributions by the Fund reduce its NAV. A distribution that reduces the Fund's
NAV below a shareholder's cost basis is taxable as described above, although
from an investment standpoint, it is a return of capital. In particular, if a
shareholder buys Fund shares just before the Fund makes a distribution, when the
Fund makes the distribution the shareholder will receive what is in effect a
return of capital. Nevertheless, the shareholder may incur taxes on the
distribution. Therefore, shareholders should carefully consider the tax
consequences of buying Fund shares just before a distribution.
All distributions, whether received in shares or cash, must be reported by each
shareholder on his or her federal income tax return. Each shareholder should
consult a tax advisor to determine the state and local tax implications of Fund
distributions.
If more than 50% of the value of the Fund's total assets at the end of a fiscal
year is represented by securities of foreign corporations and the Fund elects to
make foreign tax credits available to its shareholders, a shareholder will be
required to include in his gross income both cash dividends and the amount the
Fund advises him is his pro rata portion of income taxes withheld by foreign
governments from interest and dividends paid on the Fund's investments. The
shareholder may be entitled, however, to take the amount of such foreign taxes
withheld as a credit against his U.S. income tax, or to treat the foreign tax
withheld as an itemized deduction from his gross income, if that should be to
his advantage. In substance, this policy enables the shareholder to benefit from
the same foreign tax credit or deduction that he would have received if he had
been the individual owner of foreign securities and had paid foreign income tax
on the income therefrom. As in the case of individuals receiving income directly
from foreign sources, the credit or deduction is subject to a number of
limitations.
Special Tax Information for Municipal Bond Fund Shareholders
The Fund expects that substantially all of its dividends will be "exempt
interest dividends," which should be treated as excludable from federal gross
income. In order to pay exempt interest dividends, at least 50% of the value of
the Fund's assets must consist of federally tax-exempt obligations at the close
of each quarter. An exempt interest dividend is any dividend or part thereof
(other than a capital gain dividend) paid by the Fund with respect to its net
federally excludable municipal obligation interest and designated as an exempt
interest dividend in a written notice mailed to each shareholder not later than
60 days after the close of its taxable year. The percentage of the total
dividends paid by the Fund with respect to any taxable year that qualifies as
exempt interest dividends will be the same for all shareholders of the Fund
receiving dividends with respect to such year. If a shareholder receives an
exempt interest dividend with respect to any share and such share has been held
for six months or less, any loss on the sale or exchange of such share will be
disallowed to the extent of the exempt interest dividend amount.
Any shareholder of the Fund who may be a "substantial user" (as defined by the
Code) of a facility financed with an issue of tax-exempt obligations or a
"related person" to such a user should consult his tax advisor concerning his
qualification to receive exempt interest dividends should the Fund hold
obligations financing such facility.
Under regulations to be promulgated, to the extent attributable to interest
paid on certain private activity bonds, the Fund's exempt interest dividends,
while otherwise tax-exempt, will be treated as a tax preference item for
alternative minimum tax purposes. Corporate shareholders should also be aware
that the receipt of exempt interest dividends could subject them to alternative
minimum tax under the provisions of Section 56(g) of the Code (relating to
"adjusted current earnings").
Interest on indebtedness incurred or continued by shareholders to purchase or
carry shares of the Fund will not be deductible for federal income tax purposes
to the extent of the portion of the interest expense relating to exempt interest
dividends. Such portion is determined by multiplying the total amount of
interest paid or accrued on the indebtedness by a fraction, the numerator of
which is the exempt interest dividends received by a shareholder in his taxable
year and the denominator of which is the sum of the exempt interest dividends
and the taxable distributions out of the Fund's investment income and long-term
capital gains received by the shareholder.
Taxes on The Sale or Exchange of Fund Shares
Upon a sale or exchange of Fund shares, a shareholder will realize a
taxable gain or loss depending on his or her basis in the shares. A shareholder
must treat such gains or losses as a capital gain or loss if the shareholder
held the shares as capital assets. Capital gain on assets held for more than 12
months is generally subject to a maximum federal income tax rate of 20% for an
individual. Generally, the Code will not allow a shareholder to realize a loss
on shares he or she has sold or exchanged and replaced within a 61-day period
beginning 30 days before and ending 30 days after he or she sold or exchanged
the shares. The Code will not allow a shareholder to realize a loss on the sale
of Fund shares held by the shareholder for six months or less to the extent the
shareholder received exempt interest dividends on such shares. Moreover, the
Code will treat a shareholder's loss on shares held for six months or less as a
long-term capital loss to the extent the shareholder received distributions of
net capital gains on such shares.
Shareholders who fail to furnish their taxpayer identification numbers to
the Fund and to certify as to its correctness and certain other shareholders may
be subject to a 31% federal income tax backup withholding requirement on
dividends, distributions of capital gains and redemption proceeds paid to them
by the Fund. If the withholding provisions are applicable, any such dividends or
capital gain distributions to these shareholders, whether taken in cash or
reinvested in additional shares, and any redemption proceeds will be reduced by
the amounts required to be withheld. Investors may wish to consult their own tax
advisors about the applicability of the backup withholding provisions.
Other Tax Considerations
The foregoing discussion relates solely to U.S. federal
income tax law as applicable to U.S.
persons (i.e., U.S. citizens and residents and U.S. domestic
corporations, partnerships, trusts and
estates). It does not reflect the special tax consequences to
certain taxpayers (e.g., banks,
insurance companies, tax exempt organizations and foreign
persons). Shareholders are encouraged
to consult their own tax advisors regarding specific questions
relating to federal, state and local tax
consequences of investing in shares of the Fund. Each shareholder
who is not a U.S. person should
consult his or her tax advisor regarding the U.S. and foreign tax
consequences of ownership of
shares of the Fund, including the possibility that such a
shareholder may be subject to a U.S.
withholding tax at a rate of 30% (or at a lower rate under a tax
treaty) on amounts treated as
income from U.S. sources under the Code.
BROKERAGE
Brokerage Commissions
If the Fund invests in equity securities, it expects to buy and sell them
through brokerage transactions for which commissions are payable. Purchases from
underwriters will include the underwriting commission or concession, and
purchases from dealers serving as market makers will include a dealer's mark-up
or reflect a dealer's mark-down. Where transactions are made in the
over-the-counter market, the Fund will deal with primary market makers unless
more favorable prices are otherwise obtainable.
If the Fund invests in fixed income securities, it expects to buy and sell them
directly from the issuer or an underwriter or market maker for the securities.
Generally, the Fund will not pay brokerage commissions for such purchases. When
the Fund buys a security from an underwriter, the purchase price will usually
include an underwriting commission or concession. The purchase price for
securities bought from dealers serving as market makers will similarly include
the dealer's mark up or reflect a dealer's mark down. When the Fund executes
transactions in the over-the-counter market, it will deal with primary market
makers unless more favorable prices are otherwise obtainable.
Selection of Brokers
When buying and selling portfolio securities, the advisor seeks brokers who can
provide the most benefit to the Fund. When selecting a broker, the investment
advisor will primarily look for the best price at the lowest commission, but in
the context of the broker's:
1. ability to provide the best net financial result to the Fund;
2. efficiency in handling trades;
3. ability to trade large blocks of securities;
4. readiness to handle difficult trades;
5. financial strength and stability; and
6. provision of "research services," defined as (a) reports and analyses
concerning issuers, industries, securities and economic factors and (b) other
information useful in making investment decisions.
The Fund may pay higher brokerage commissions to a broker providing it with
research services, as defined in item 6, above. Pursuant to Section 28(e) of the
Securities Exchange Act of 1934, this practice is permitted if the commission is
reasonable in relation to the brokerage and research services provided. Research
services provided by a broker to the advisor do not replace, but supplement, the
services an advisor is required to deliver to the Fund. It is impracticable for
the investment advisor to allocate the cost, value and specific application of
such research services among its clients because research services intended for
one client may indirectly benefit another.
When selecting a broker for portfolio trades, the investment advisor may also
consider the amount of Fund shares a broker has sold, subject to the other
requirements described above.
If the Fund is advised by EIMC, Lieber & Company, an affiliate of EIMC and a
member of the New York and American Stock Exchanges, will to the extent
practicable effect substantially all of the portfolio transactions effected on
those exchanges for the Fund.
Simultaneous Transactions
The investment advisor makes investment decisions for the Fund independently of
decisions made for its other clients. When a security is suitable for the
investment objective of more than one client, it may be prudent for the
investment advisor to engage in a simultaneous transaction, that is, buy or sell
the same security for more than one client. The investment advisor strives for
an equitable result in such transactions by using an allocation formula. The
high volume involved in some simultaneous transactions can result in greater
value to the Fund, but the ideal price or trading volume may not always be
achieved for an individual Fund.
ORGANIZATION
Description of Shares
The Declaration of Trust authorizes the issuance of an unlimited number of
shares of beneficial interest of series and classes of shares. Each share of the
Fund represents an equal proportionate interest with each other share of that
series and/or class. Upon liquidation, shares are entitled to a pro rata share
of the Trust based on the relative net assets of each series and/or class.
Shareholders have no preemptive or conversion rights. Shares are redeemable and
transferable.
Voting Rights
Under the terms of the Declaration of Trust, the Trust is not required to
hold annual meetings. At meetings called for the initial election of Trustees or
to consider other matters, each share is entitled to one vote for each dollar of
"NAV"applicable to such share. Shares generally vote together as one class on
all matters. Classes of shares of the Fund have equal voting rights. No
amendment may be made to the Declaration of Trust that adversely affects any
class of shares without the approval of a majority of the votes applicable to
the shares of that class. Shares have non-cumulative voting rights, which means
that the holders of more than 50% of the votes applicable to shares voting for
the election of Trustees can elect 100% of the Trustees to be elected at a
meeting and, in such event, the holders of the remaining shares voting will not
be able to elect any Trustees.
After the initial meeting as described above, no further meetings of
shareholders for the purpose of electing Trustees will be held, unless required
by law (for such reasons as electing or removing Trustees, changing fundamental
policies, and approving advisory agreements or 12b-1 plans), unless and until
such time as less than a majority of the Trustees holding office have been
elected by shareholders, at which time, the Trustees then in office will call a
shareholders' meeting for the election of Trustees.
Limitation of Trustees' Liability
The Declaration of Trust provides that a Trustee will not be liable for
errors of judgment or mistakes of fact or law, but nothing in the Declaration of
Trust protects a Trustee against any liability to which he would otherwise be
subject by reason of willful misfeasance, bad faith, gross negligence or
reckless disregard of his duties involved in the conduct of his office.
Banking Laws
The Glass-Steagall Act and other banking laws and regulations presently prohibit
member banks of the Federal Reserve System ("Member Banks") or their non-bank
affiliates from sponsoring, organizing, controlling, or distributing the shares
of registered, open-end investment companies such as the Trust. Such laws and
regulations also prohibit banks from issuing, underwriting or distributing
securities in general. However, under the Glass- Steagall Act and such other
laws and regulations, a Member Bank or an affiliate thereof may act as
investment advisor, transfer agent or custodian to a registered open-end
investment company and may also act as agent in connection with the purchase of
shares of such an investment company upon the order of its customer, FUNB and
its affiliates are subject to, and in compliance with, the aforementioned laws
and regulations.
Changes to applicable laws and regulations or future judicial or administrative
decisions could result in FUNB and its affiliates being prevented from
continuing to perform the services required under the investment advisory
contract or from acting as agent in connection with the purchase of shares of
the Fund by its customers. If FUNB and its affiliates were prevented from
continuing to provide for services called for under the investment advisory
agreement, it is expected that the Trustees would identify, and call upon the
Fund's shareholders to approve a new investment advisor. If this were to occur,
it is not anticipated that the shareholders of the Fund would suffer any adverse
financial consequences.
INVESTMENT ADVISORY AGREEMENT
On behalf of the Fund, the Trust has entered into an investment advisory
agreement with the Fund's investment advisor (the "Advisory Agreement"). Under
the Advisory Agreement, and subject to the supervision of the Trust's Board of
Trustees, the investment advisor furnishes to the Fund investment advisory,
management and administrative services, office facilities, and equipment in
connection with its services for managing the investment and reinvestment of the
Fund's assets. The investment advisor pays for all of the expenses incurred in
connection with the provision of its services. The Fund pays for all charges and
expenses, other than those specifically referred to as being borne by the
investment advisor, including, but not limited to, (1) custodian charges and
expenses; (2) bookkeeping and auditors' charges and expenses; (3) transfer agent
charges and expenses; (4) fees and expenses of Independent Trustees; (5)
brokerage commissions, brokers' fees and expenses; (6) issue and transfer taxes;
(7) applicable costs and expenses under the Distribution Plan (as described
above) (8) taxes and trust fees payable to governmental agencies; (9) the cost
of share certificates; (10) fees and expenses of the registration and
qualification of the Fund and its shares with the SEC or under state or other
securities laws; (11) expenses of preparing, printing and mailing prospectuses,
SAIs, notices, reports and proxy materials to shareholders of the Fund; (12)
expenses of shareholders' and Trustees' meetings; (13) charges and expenses of
legal counsel for the Fund and for the Independent Trustees on matters relating
to the Fund; (14) charges and expenses of filing annual and other reports with
the SEC and other authorities; and (15) all extraordinary charges and expenses
of the Fund. For information on advisory fees paid by the Fund, see "Expenses"
in Part 1 of this SAI.
The Advisory Agreement continues in effect for two years from its effective
date and, thereafter, from year to year only if approved at least annually by
the Board of Trustees of the Trust or by a vote of a majority of the Fund's
outstanding shares. In either case, the terms of the Advisory Agreement and
continuance thereof must be approved by the vote of a majority of the
Independent Trustees cast in person at a meeting called for the purpose of
voting on such approval. The Advisory Agreement may be terminated, without
penalty, on 60 days' written notice by the Trust's Board of Trustees or by a
vote of a majority of outstanding shares. The Advisory Agreement will terminate
automatically upon its "assignment" as that term is defined in the 1940 Act.
Transactions Among Advisory Affiliates
The Trust has adopted procedures pursuant to Rule 17a-7 of the 1940 Act
("Rule 17a-7 Procedures"). The Rule 17a-7 Procedures permit the Fund to buy or
sell securities from another investment company for which a subsidiary of First
Union Corporation is an investment advisor. The Rule 17a-7 Procedures also allow
the Fund to buy or sell securities from other advisory clients for whom a
subsidiary of First Union Corporation is an investment advisor. The Fund may
engage in such transaction if it is equitable to each participant and consistent
with each participant's investment objective.
MANAGEMENT OF THE TRUST
The Trust is supervised by a Board of Trustees that is responsible for
representing the interest of the shareholders. The Trustees meet periodically
throughout the year to oversee the Fund's activities, reviewing, among other
things, the Fund's performance and its contractual arrangements with various
service providers. Each Trustee is paid a fee for his or her services. See
"Expenses-Trustee Compensation" in Part 1 of this SAI.
The Trust has an Executive Committee which consists of the Chairman of the
Board, James Howell, and Messrs. Scofield and Salton, each of whom is an
Independent Trustee. The Executive Committee recommends Trustees to fill
vacancies, prepares the agenda for Board meetings and acts on routine matters
between scheduled Board meetings.
Set forth below are the Trustees and officers of the Trust and their
principal occupations and affiliations over the last five years. Unless
otherwise indicated, the address for each Trustee and officer is 200 Berkeley
Street, Boston, Massachusetts 02116.
Each Trustee is also a Trustee of
each of the other Trusts in the Evergreen Fund complex, other than Evergreen
Variable Trust of which Messrs. Howell, Salton and Scofield are the only
Trustees.
Name
Position with Trust
Principal Occupations for Last Five Years
Laurence B. Ashkin
(DOB: 2/2/28)
Trustee
Real estate developer and construction consultant;
and President of Centrum Equities and Centrum
Properties, Inc.
Charles A. Austin III
(DOB: 10/23/34)
Trustee
Investment Counselor to Appleton Partners, Inc.; former Director, Executive Vice
President and Treasurer, State Street Research & Management Company (investment
advice); Director, The Andover Companies (Insurance); and Trustee, Arthritis
Foundation of New England
K. Dun Gifford
(DOB: 10/12/38)
Trustee
Trustee, Treasurer and Chairman of the Finance Committee, Cambridge College;
Chairman Emeritus and Director, American Institute of Food and Wine; Chairman
and President, Oldways Preservation and Exchange Trust (education); former
Chairman of the Board, Director, and Executive Vice President, The London
Harness Company; former Managing Partner, Roscommon Capital Corp.; former Chief
Executive Officer, Gifford Gifts of Fine Foods; former Chairman, Gifford,
Drescher & Associates (environmental consulting)
James S. Howell
(DOB: 8/13/24)
Chairman of the
Board of Trustees
Former Chairman of the Distribution Foundation for
the Carolinas; and former Vice President of Lance
Inc. (food manufacturing).
Leroy Keith, Jr.
(DOB: 2/14/39)
Trustee
Chairman of the Board and Chief Executive Officer, Carson Products Company;
Director of Phoenix Total Return Fund and Equifax, Inc.; Trustee of Phoenix
Series Fund, Phoenix Multi-Portfolio Fund, and The Phoenix Big Edge Series Fund;
and former President, Morehouse College.
Gerald M. McDonnell
(DOB: 7/14/39)
Trustee
Sales Representative with Nucor-Yamoto, Inc.
(steel producer).
Thomas L. McVerry
(DOB: 8/2/39)
Trustee
Former Vice President and Director of Rexham Corporation; and former Director of
Carolina Cooperative Federal Credit Union.
William Walt Pettit
(DOB: 8/26/55)
Trustee
Partner in the law firm of William Walt Pettit, P.A.
David M. Richardson
(DOB: 9/14/41)
Trustee
Vice Chair and former Executive Vice President,
DHR International, Inc. (executive recruitment);
former Senior Vice President, Boyden International
Inc. (executive recruitment); and Director,
Commerce and Industry Association of New
Jersey, 411 International, Inc., and J&M Cumming
Paper Co.
Russell A. Salton, III MD
(DOB: 6/2/47)
Trustee
Medical Director, U.S. Health Care/Aetna Health
Services; former Managed Health Care Consultant;
and former President, Primary Physician Care.
Michael S. Scofield
(DOB: 2/20/43)
Trustee
Attorney, Law Offices of Michael S. Scofield.
Richard J. Shima
(DOB: 8/11/39)
Trustee
Former Chairman, Environmental Warranty, Inc. (insurance agency); Executive
Consultant, Drake Beam Morin, Inc. (executive outplacement); Director of
Connecticut Natural Gas Corporation, Hartford Hospital, Old State House
Association, Middlesex Mutual Assurance Company, and Enhance Financial Services,
Inc.; Chairman, Board of Trustees, Hartford Graduate Center; Trustee, Greater
Hartford YMCA; former Director, Vice Chairman and Chief Investment Officer, The
Travelers Corporation; former Trustee, Kingswood- Oxford School; and former
Managing Director and Consultant, Russell Miller, Inc.
William J. Tomko*
(DOB:8/30/58)
President and
Treasurer
Senior Vice President and Operations Executive,
BYSIS Fund Services.
Nimish S. Bhatt*
(DOB: 6/6/63)
Vice President and
Assistant Treasurer
Vice President, Tax, BISYS Fund Services; former
Assistant Vice President, EAMC/First Union Bank;
former Senior Tax Consulting/Acting Manager,
Investment Companies Group,
PricewaterhouseCoopers LLP, New York.
Bryan Haft*
(DOB: 1/23/65)
Michael H. Koonce
(DOB: 4/20/60)
Vice President
Secretary
Team Leader, Fund Administration, BISYS Fund
Services.
Senior Vice President and Assistant General
Counsel, First Union Corporation; former Senior
Vice President and General Counsel, Colonial
Management Associates, Inc.
*Address: BISYS, 3435 Stelzer Road, Columbus, Ohio 43219-8001
CORPORATE AND MUNICIPAL BOND RATINGS
The Fund relies on ratings provided by independent rating services to help
determine the credit quality of bonds and other obligations the Fund intends to
purchase or already owns. A rating is an opinion of an issuer's ability to pay
interest and/or principal when due. Ratings reflect an issuer's overall
financial strength and whether it can meet its financial commitments under
various economic conditions.
If a security held by the Fund loses its rating or has its rating reduced after
the Fund has purchased it, the Fund is not required to sell or otherwise dispose
of the security, but may consider doing so.
The principal rating services, commonly used by the Fund and investors
generally, are S&P and Moody's. The Fund may also rely on ratings provided by
Fitch. Rating systems are similar among the different services. As an example,
the chart below compares basic ratings for long-term bonds. The "Credit Quality"
terms in the chart are for quick reference only. Following the chart are the
specific definitions each service provides for its ratings.
COMPARISON OF LONG-TERM BOND RATINGS
MOODY?S
S&P
FITCH
Credit Quality
Aaa
AAA
AAA
Excellent Quality (lowest risk)
Aa
AA
AA
Almost Excellent Quality (very low risk)
A
A
A
Good Quality (low risk)
Baa
BBB
BBB
Satisfactory Quality (some risk)
Ba
BB
BB
Questionable Quality (definite risk)
B
B
B
Low Quality (high risk)
Caa/Ca/C
CCC/CC/C
CCC/CC/C
In or Near Default
D
DDD/DD/D
In Default
CORPORATE BONDS
LONG-TERM RATINGS
Moody's Corporate Long-Term Bond Ratings
Aaa Bonds which are rated Aaa are judged to be of the best quality. They carry
the smallest degree of investment risk and are generally referred to as "gilt
edged." Interest payments are protected by a large or by an exceptionally stable
margin and principal is secure. While the various protective elements are likely
to change, such changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issues.
Aa Bonds which are rated Aa are judged to be of high quality by all standards.
Together with the Aaa group they comprise what are generally known as high grade
bonds. They are rated lower than the best bonds because margins of protection
may not be as large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there may be other elements present which make
the long-term risk appear somewhat larger than the Aaa securities.
A Bonds which are rated A possess many favorable investment attributes and are
to be considered as upper-medium-grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present
which suggest a susceptibility to impairment some time in the future.
Baa Bonds which are rated Baa are considered as medium-grade obligations, (i.e.
they are neither highly protected nor poorly secured). Interest payments and
principal security appear adequate for the present but certain protective
elements may be lacking or may be characteristically unreliable over any great
length of time. Such bonds lack outstanding investment characteristics and in
fact have speculative characteristics as well.
Ba Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well-assured. Often the protection of interest
and principal payments may be very moderate, and thereby not well safeguarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.
B Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.
Caa Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.
Ca Bonds which are rated Ca represent obligations which are speculative in a
high degree. Such issues are often in default or have other marked shortcomings.
C Bonds which are rated C are the lowest rated class of bonds, and issues so
rated can be regarded as having extremely poor prospects of ever attaining any
real investment standing.
Note: Moody?s applies numerical modifiers, 1, 2 and 3 in each generic rating
classification from Aa to Caa. The modifier 1 indicates that the company ranks
in the higher end of its generic rating category; the modifier 2 indicates a
mid-range raking and the modifier 3 indicates that the company ranks in the
lower end of its generic rating category.
S&P Corporate Long-Term Bond Ratings
AAA An obligation rated AAA has the highest rating assigned by S&P. The
obligor's capacity to meet its financial commitment on the obligation is
extremely strong.
AA An obligation rated AA differs from the highest-rated obligations only in
small degree. The obligor?s capacity to meet its financial commitment on the
obligation is very strong.
A An obligation rated A is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than obligations in higher-
rated categories. However, the obligor?s capacity to meet its financial
commitment on the obligation is still strong.
BBB An obligation rated BBB exhibits adequate protection parameters. However,
adverse economic conditions or changing circumstances are more likely to lead to
a weakened capacity of the obligor to meet its financial commitment on the
obligation.
BB, B, CCC, CC and C: As described below, obligations rated BB, B, CCC, CC, and
C are regarded as having significant speculative characteristics. BB indicates
the least degree of speculation and C the highest. While such obligations will
likely have some quality and protective characteristics, these may be outweighed
by large uncertainties or major exposures to adverse conditions.
BB An obligation rated BB is less vulnerable to nonpayment than other
speculative issues. However, it faces major ongoing uncertainties or exposure to
adverse business, financial, or economic conditions, which could lead to the
obligor's inadequate capacity to meet its financial commitment on the
obligation.
B An obligation rated B is more vulnerable to nonpayment than obligations rated
BB, but the obligor currently has the capacity to meet its financial commitment
on the obligation. Adverse business, financial, or economic conditions will
likely impair the obligor's capacity or willingness to meet it financial
commitment on the obligation.
CCC An obligation rated CCC is currently vulnerable to nonpayment and is
dependent upon favorable business, financial, and economic conditions for the
obligor to meet its financial commitment on the obligation. In the event of
adverse business, financial, or economic conditions, the obligor is not likely
to have the capacity to meet its financial commitment on the obligation.
CC An obligation rated CC is currently highly vulnerable to nonpayment.
C The C rating may be used to cover a situation where a bankruptcy petition has
been filed or similar action has been taken, but payments on this obligation are
being continued.
D The D rating, unlike other ratings, is not prospective; rather, it is used
only where a default has actually occurred--and not where a default is only
expected. S&P changes ratings to D either:
? On the day an interest and/or principal payment is due and is
not paid. An exception is
made if there is a grace period and S&P believes that a payment
will be made, in which case
the rating can be maintained; or
? Upon voluntary bankruptcy filing or similar action. An exception is made if
S&P expects that debt service payments will continue to be made on a specific
issue. In the absence of a payment default or bankruptcy filing, a technical
default (i.e., covenant violation) is not sufficient for assigning a D rating.
Plus (+) or minus (-) The ratings from AA to CCC may be modified by the addition
of a plus or minus sign to show relative standing within the major rating
categories.
Fitch Corporate Long-Term Bond Ratings
Investment Grade
AAA Highest credit quality. AAA ratings denote the lowest expectation of credit
risk. They are assigned only in case of exceptionally strong capacity for timely
payment of financial commitments. This capacity is highly unlikely to be
adversely affected by foreseeable events.
AA Very high credit quality. AA ratings denote a very low expectation of credit
risk. They indicate very strong capacity for timely payment of financial
commitments. This capacity is not significantly vulnerable to foreseeable
events.
A High credit quality. A ratings denote a lower expectation of credit risk. The
capacity for timely payment of financial commitments is considered strong. This
capacity may, nevertheless, be more vulnerable to changes in circumstances or in
economic conditions than is the case for higher ratings.
BBB Good credit quality. BBB ratings indicate that there is currently a low
expectation of credit risk. The capacity for timely payment of financial
commitments is considered adequate, but adverse changes in circumstances and in
economic conditions are more likely to impair this capacity. This is the lowest
investment-grade category.
Speculative Grade
BB Speculative. BB ratings indicate that there is a possibility of credit risk
developing, particularly as the result of adverse economic change over time;
however, business or financial alternatives may be available to allow financial
commitments to be met. Securities rated in this category are not investment
grade.
B Highly speculative. B ratings indicate that significant credit risk is
present, but a limited margin of safety remains. Financial commitments are
currently being met; however, capacity for continued payment is contingent upon
a sustained, favorable business and economic environment.
CCC, CC, C High default risk. Default is a real possibility. Capacity for
meeting financial commitment is solely reliant upon sustained, favorable
business or economic developments. A CC rating indicates that default of some
kind appears probable. C ratings signal imminent default.
DDD, DD, D Default. Securities are not meeting current
obligations and are extremely
speculative. DDD designates the highest potential for recovery of
amounts outstanding on any
securities involved. For U.S. corporates, for example, DD
indicates expected recovery of 50%-90%
of such outstandings, and D the lowest recovery potential, i.e.
below 50%.
+ or - may be appended to a rating to denote relative status within major rating
categories. Such suffixes are not added to the AAA rating category or to
categories below CCC.
CORPORATE SHORT-TERM RATINGS
Moody?'s Corporate Short-Term Issuer Ratings
Prime-1 Issuers rated Prime-1 (or supporting institutions) have a superior
ability for repayment of senior short-term debt obligations. Prime-1 repayment
ability will often be evidenced by many of the following characteristics.
- -- Leading market positions in well-established industries.
- -- High rates of return on funds employed.
- -- Conservative capitalization structure with moderate reliance on debt and
ample asset protection.
- -- Broad margins in earnings coverage of fixed financial changes and high
internal cash generation.
- -- Well-established access to a range of financial markets and assured sources
of alternate liquidity.
Prime-2 Issuers rated Prime-2 (or supporting institutions) have a strong ability
for repayment of senior short-term debt obligations. This will normally be
evidenced by many of the characteristics cited above but to a lesser degree.
Earnings trends and coverage ratios, while sound, may be more subject to
variation. Capitalization characteristics, while still appropriate, may be more
affected by external conditions. Ample alternate liquidity is maintained.
Prime-3 Issuers rated Prime-3 (or supporting institutions) have an acceptable
ability for repayment of senior short-term obligations. The effect of industry
characteristics and market compositions may be more pronounced. Variability in
earnings and profitability may result in changes in the level of debt protection
measurements and may require relatively high financial leverage. Adequate
alternate liquidity is maintained.
Not Prime Issuers rated Not Prime do not fall within any of the Prime rating
categories.
S&P Corporate Short-Term Obligation Ratings
A-1 A short-term obligation rated A-1 is rated in the highest category by S&P.
The obligor?s capacity to meet its financial commitment on the obligation is
strong. Within this category certain obligations are designated with a plus sign
(+). This indicates that the obligor?s capacity to meet its financial commitment
on these obligations is extremely strong.
A-2 A short-term obligation rated A-2 is somewhat more susceptible to the
adverse effects of changes in circumstances and economic conditions than
obligations in higher rating categories. However, the obligor?s capacity to meet
its financial commitment on the obligation is satisfactory.
A-3 A short-term obligation rated A-3 exhibits adequate protection parameters.
However, adverse economic conditions or changing circumstances are more likely
to lead to a weakened capacity of the obligor to meet its financial commitment
on the obligation.
B A short-term obligation rated B is regarded as having significant speculative
characteristics. The obligor currently has the capacity to meet its financial
commitment on the obligation; however, it faces major ongoing uncertainties
which could lead to the obligor?s inadequate capacity to meet its financial
commitment on the obligation.
C A short-term obligation rated C is currently vulnerable to nonpayment and is
dependent upon favorable business, financial, and economic conditions for the
obligor to meet its financial commitment on the obligation.
D The D rating, unlike other ratings, is not prospective; rather, it is used
only where a default has actually occurred--and not where a default is only
expected. S&P changes ratings to D either:
? On the day an interest and/or principal payment is due and is
not paid. An exception is
made if there is a grace period and S&P believes that a payment
will be made, in which case
the rating can be maintained; or
? Upon voluntary bankruptcy filing or similar action, An exception is made if
S&P expects that debt service payments will continue to be made on a specific
issue. In the absence of a payment default or bankruptcy filing, a technical
default (i.e., covenant violation) is not sufficient for assigning a D rating.
Fitch Corporate Short-Term Obligation Ratings
F1 Highest credit quality. Indicates the strongest capacity for timely payment
of financial commitments; may have an added ?+? to denote any exceptionally
strong credit feature.
F2 Good credit quality. A satisfactory capacity for timely payment of financial
commitments, but the margin of safety is not as great as in the case of the
higher ratings.
F3 Fair credit quality. The capacity for timely payment of financial commitments
is adequate; however, near-term adverse changes could result in a reduction to
non-investment grade.
B Speculative. Minimal capacity for timely payment of financial commitments,
plus vulnerability to near-term adverse changes in financial and economic
conditions.
C High default risk. Default is a real possibility. Capacity for meeting
financial commitments is solely reliant upon a sustained, favorable business and
economic environment.
D Default. Denotes actual or imminent payment default.
MUNICIPAL BONDS
LONG-TERM RATINGS
Moody?'s Municipal Long-Term Bond Ratings
Aaa Bonds rated Aaa are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as ?gilt edge.?
Interest payments are protected by a large or by an exceptionally stable margin
and principal is secure. While the various protective elements are likely to
change, such changes as can be visualized are most unlikely to impair the
fundamentally strong position of such issues.
Aa Bonds rated Aa are judged to be of high quality by all standards. Together
with the Aaa group they comprise what are generally known as high grade bonds.
They are rated lower than the best bonds because margins of protection may not
be as large as in Aaa securities or fluctuation of protective elements may be of
greater amplitude or there may be other elements present which make the
long-term risk appear somewhat larger than the Aaa securities.
A Bonds rated A possess many favorable investment attributes and are to be
considered as upper- medium grade obligations. Factors giving security to
principal and interest are considered adequate, but elements may be present
which suggest a susceptibility to impairment some time in the future.
Baa Bonds rated Baa are considered as medium-grade obligations, i.e., they are
neither highly protected nor poorly secured. Interest payments and principal
security appear adequate for the present but certain protective elements may be
lacking or may be characteristically unreliable over any great length of time.
Such bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
Ba Bonds rated Ba are judged to have speculative elements; their future cannot
be considered as well-assured. Often the protection of interest and principal
payments may be very moderate, and thereby not well safeguarded during both good
and bad times over the future. Uncertainty of position characterizes bonds in
this class.
B Bonds rated B generally lack characteristics of the desirable investment.
Assurance of interest and principal payments or of maintenance of other terms of
the contract over any long period of time may be small.
Caa Bonds rated Caa are of poor standing. Such issues may be in default or there
may be present elements of danger with respect to principal or interest.
Ca Bonds rated Ca represent obligations which are speculative in a high degree.
Such issues are often in default or have other marked shortcomings.
C Bonds rated C are the lowest rated class of bonds, and issues so rated can be
regarded as having extremely poor prospects of ever attaining any real
investment standing.
Note: Moody?s applies numerical modifiers 1, 2 and 3 in each generic rating
classification from Aa to B. The modifier 1 indicates that the company ranks in
the higher end of its generic rating category; the modifier 2 indicates a
mid-range raking and the modifier 3 indicates that the company ranks in the
lower end of its generic rating category.
S&P Municipal Long-Term Bond Ratings
AAA An obligation rated AAA has the highest rating assigned by S&P. The
obligor?s capacity to meet its financial commitment on the obligation is
extremely strong.
AA An obligation rated AA differs from the highest-rated obligations only in
small degree. The obligor?s capacity to meet its financial commitment on the
obligation is very strong.
A An obligation rated A is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than obligations in higher-
rated categories. However, the obligor?s capacity to meet its financial
commitment on the obligation is still strong.
BBB An obligation rated BBB exhibits adequate protection parameters. However,
adverse economic conditions or changing circumstances are more likely to lead to
a weakened capacity of the obligor to meet its financial commitment on the
obligation.
BB, B, CCC, CC and C: As described below, obligations rated BB, B, CCC, CC, and
C are regarded as having significant speculative characteristics. BB indicates
the least degree of speculation and C the highest. While such obligations will
likely have some quality and protective characteristics, these may be outweighed
by large uncertainties or major exposures to adverse conditions.
BB An obligation rated BB is less vulnerable to nonpayment than other
speculative issues. However, it faces major ongoing uncertainties or exposure to
adverse business, financial, or economic conditions, which could lead to the
obligor?s inadequate capacity to meet its financial commitment on the
obligation.
B An obligation rated B is more vulnerable to nonpayment than obligations rated
BB, but the obligor currently has the capacity to meet its financial commitment
on the obligation. Adverse business, financial, or economic conditions will
likely impair the obligor?s capacity or willingness to meet it financial
commitment on the obligation.
CCC An obligation rated CCC is currently vulnerable to nonpayment and is
dependent upon favorable business, financial, and economic conditions for the
obligor to meet its financial commitment on the obligation. In the event of
adverse business, financial, or economic conditions, the obligor is not likely
to have the capacity to meet its financial commitment on the obligation.
CC An obligation rated CC is currently highly vulnerable to nonpayment.
C The C rating may be used to cover a situation where a bankruptcy petition has
been filed or similar action has been taken, but payments on this obligation are
being continued.
D An obligation rated D is in payment default. The D rating category is used
when payments on an obligation are not made on the date due even if the
applicable grace period has not expired, unless S&P believes that such payments
will be made during such grace period. The D rating also will be used upon the
filing of a bankruptcy petition or the taking of a similar action if payments on
an obligation are jeopardized.
Plus (+) or minus (-) The ratings from AA to CCC may be modified by the addition
of a plus or minus sign to show relative standing within the major rating
categories.
Fitch Municipal Long-Term Bond Ratings
Investment Grade
AAA Highest credit quality. AAA ratings denote the lowest expectation of credit
risk. They are assigned only in case of exceptionally strong capacity for timely
payment of financial commitments. This capacity is highly unlikely to be
adversely affected by foreseeable events.
AA Very high credit quality. AA ratings denote a very low expectation of credit
risk. They indicate very strong capacity for timely payment of financial
commitments. This capacity is not significantly vulnerable to foreseeable
events.
A High credit quality. A ratings denote a lower expectation of credit risk. The
capacity for timely payment of financial commitments is considered strong. This
capacity may, nevertheless, be more vulnerable to changes in circumstances or in
economic conditions than is the case for higher ratings.
BBB Good credit quality. BBB ratings indicate that there is currently a low
expectation of credit risk. The capacity for timely payment of financial
commitments is considered adequate, but adverse changes in circumstances and in
economic conditions are more likely to impair this capacity. This is the lowest
investment-grade category.
Speculative Grade
BB Speculative. BB ratings indicate that there is a possibility of credit risk
developing, particularly as the result of adverse economic change over time;
however, business or financial alternatives may be available to allow financial
commitments to be met. Securities rated in this category are not investment
grade.
B Highly speculative. B ratings indicate that significant credit risk is
present, but a limited margin of safety remains. Financial commitments are
currently being met; however, capacity for continued payment is contingent upon
a sustained, favorable business and economic environment.
CCC, CC, C High default risk. Default is a real possibility. Capacity for
meeting financial commitments is solely reliant upon sustained, favorable
business or economic developments. A CC rating indicates that default of some
kind appears probable. C ratings signal imminent default.
DDD, DD, D Default. Securities are not meeting current obligations and are
extremely speculative. DDD designates the highest potential for recovery of
amounts outstanding on any securities involved. DD designates lower recovery
potential and D the lowest.
+ or - may be appended to a rating to denote relative status within major rating
categories. Such suffixes are not added to the AAA rating category or to
categories below CCC.
SHORT-TERM MUNICIPAL RATINGS
Moody?'s Municipal Short-Term Issuer Ratings
Prime-1 Issuers rated Prime-1 (or supporting institutions) have a superior
ability for repayment of senior short-term debt obligations. Prime-1 repayment
ability will often be evidence by many of the following characteristics.
- -- Leading market positions in well-established industries.
- -- High rates of return on funds employed.
- -- Conservative capitalization structure with moderate reliance on debt and
ample asset protection.
- -- Broad margins in earnings coverage of fixed financial changes and high
internal cash generation.
- -- Well-established access to a range of financial markets and assured sources
of alternate liquidity.
Prime-2 Issuers rated Prime-2 (or supporting institutions) have a strong ability
for repayment of senior short-term debt obligations. This will normally be
evidenced by many of the characteristics cited above but to a lesser degree.
Earnings trends and coverage ratios, while sound, may be more subject to
variation. Capitalization characteristics, while still appropriate, may be more
affected by external conditions. Ample alternate liquidity is maintained.
Prime-3 Issuers rated Prime-3 (or supporting institutions) have an acceptable
ability for repayment of senior short-term obligations. The effect of industry
characteristics and market compositions may be more pronounced. Variability in
earnings and profitability may result in changes in the level of debt protection
measurements and may require relatively high financial leverage. Adequate
alternate liquidity is maintained.
Not Prime Issuers rated Not Prime do not fall within any of the Prime rating
categories.
Moody?'s Municipal Short-Term Loan Ratings
MIG 1 This designation denotes best quality. There is strong protection by
established cash flows, superior liquidity support, or demonstrated broad-based
access to the market for refinancing.
MIG 2 This designation denotes high quality. Margins of protection are ample
although not so large as in the preceding group.
MIG 3 This designation denotes favorable quality. Liquidity and cash-flow
protection may be narrow and market access for refinancing is likely to be less
well established.
SG This designation denotes speculative quality. Debt instruments in this
category may lack margins of protection.
S&P Commercial Paper Ratings
A-1 This designation indicates that the degree of safety regarding timely
payment is strong. Those issues determined to possess extremely strong safety
characteristics are denoted with a plus sign (+) designation.
A-2 Capacity for timely payment on issues with this designation is satisfactory.
However, the relative degree of safety is not as high as for issues designated
A-1.
A-3 Issues carrying this designation have an adequate capacity for timely
payment. They are, however, more vulnerable to the adverse effects of changes in
circumstances than obligations carrying the higher designations.
B Issues rated B are regarded as having only speculative capacity for timely
payment.
C This rating is assigned to short-term debt obligations with a doubtful
capacity for payment.
D Debt rated D is in payment default. The D rating category is used when
interest payments of principal payments are not made on the date due, even if
the applicable grace period has not expired, unless S&P believes such payments
will be made during such grace period.
S&P Municipal Short-Term Obligation Ratings
SP-1 Strong capacity to pay principal and interest. An issue determined to
possess a very strong capacity to pay debt service is given a plus (+)
designation.
SP-2 Satisfactory capacity to pay principal and interest, with some
vulnerability to adverse financial and economic changes over the term of the
notes.
SP-3 Speculative capacity to pay principal and interest.
Fitch Municipal Short-Term Obligation Ratings
F1 Highest credit quality. Indicates the strongest capacity for timely payment
of financial commitments; may have an added ?+? to denote any exceptionally
strong credit feature.
F2 Good credit quality. A satisfactory capacity for timely payment of financial
commitments, but the margin of safety is not as great as in the case of the
higher ratings.
F3 Fair credit quality. The capacity for timely payment of financial commitments
is adequate; however, near-term adverse changes could result in a reduction to
non-investment grade.
B Speculative. Minimal capacity for timely payment of financial commitments,
plus vulnerability to near-term adverse changes in financial and economic
conditions.
C High default risk. Default is a real possibility. Capacity for meeting
financial commitments is solely reliant upon a sustained, favorable business and
economic environment.
D Default. Denotes actual or imminent payment default.
ADDITIONAL INFORMATION
Except as otherwise stated in its prospectus or required by law, the
Fund reserves the right to change the terms of the offer stated in its
prospectus without shareholder approval, including the right to impose or change
fees for services provided.
No dealer, salesman or other person is authorized to give any
information or to make any representation not contained in the Fund's
prospectus, SAI or in supplemental sales literature issued by the Fund or the
Distributor, and no person is entitled to rely on any information or
representation not contained therein.
The Fund's prospectus and SAI omit certain information contained in the
Trust's registration statement, which you may obtain for a fee from the SEC in
Washington, D.C.
1- 34
2-39
24387
EVERGREEN INTERNATIONAL TRUST
PART C
OTHER INFORMATION
Item 23 Exhibits
Unless otherwise indicated, each of the Exhibits listed below is filed
herewith.
<TABLE>
<CAPTION>
Exhibit
Number Description Location
- ------- ----------- -----------
<S> <C> <C>
(a) Declaration of Trust Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
(b) By-laws Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
(c) Provisions of instruments defining the rights of holders of the
securities being registered are contained in the Declaration of Trust
Articles II, III.(6)(c), VI.(3), IV.(8), V, VI, VII, VIII and By-laws
Articles II, III and VIII included as part of Exhibits 1 and 2 of this
Registration Statement
(d) Form of Investment Advisory and Management Incorporated by reference to
Agreement between the Registrant and First Registrant's Registration Statement
Union National Bank Filed on December 12, 1997
Form of Investment Advisory and Management Incorporated by reference to
Agreement between the Registrant and Evergreen Registrant's Registration Statement
Asset Management Corp. Filed on December 12, 1997
Form of Investment Advisory and Management Incorporated by reference to
Agreement between the Registrant and Keystone Registrant's Registration Statement
Investment Management Company Filed on December 12, 1997
(e) Form of Class A and Class C Principal Underwriting Incorporated by reference to
Agreement between the Registrant and Evergreen Registrant's Registration Statement
Distributor, Inc. Filed on December 12, 1997
Form of Class B Principal Underwriting Agreement Incorporated by reference to
between the Registrant and Evergreen Investment Registrant's Registration Statement
Services, Inc. (B-1) Filed on December 12, 1997
Form of Class B Principal Underwriting Agreement Incorporated by reference to
between the Registrant and Evergreen Distributor, Registrant's Registration Statement
Inc. (B-2) Filed on December 12, 1997
Form of Class B Principal Underwriting Agreement Incorporated by reference to
between the Registrant and Evergreen Distributor, Registrant's Registration Statement
Inc. (Evergreen/KCF) Filed on December 12, 1997
Form of Class Y Principal Underwriting Agreement Incorporated by reference to
between the Registrant and Evergreen Distributor, Registrant's Registration Statement
Inc. Filed on December 12, 1997
Form of Dealer Agreement used by Evergreen Incorporated by reference to
Distributor, Inc. Registrant's Registration Statement
Filed on December 12, 1997
(f) Form of Deferred Compensation Plan Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
(g) Form of Custodian Agreement between the Registrant Incorporated by reference to
and State Street Bank and Trust Company Registrant's Registration Statement
Filed on December 12, 1997
(h) Form of Administration Agreement between Evergreen Incorporated by reference to
Investment Services, Inc. and the Registrant Registrant's Registration Statement
Filed on December 12, 1997
Form of Transfer Agent Agreement between the Incorporated by reference to
Registrant and Evergreen Service Company Registrant's Registration Statement
Filed on December 12, 1997
(i) Opinion and
Consent of
Sullivan &
Worcester LLP
Incorporated by
reference to
Registrant's
Registration
Statement Filed
on December 12,
1997
(j) Consent of PricewaterhouseCoopers LLP Filed herein
Consent of KPMG Peat Marwick LLP Filed herein
(k) Not applicable
(1) Not applicable
(m) Form of 12b-1 Distribution Plan for Class A Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
Form of 12b-1 Distribution Plan for Class B Incorporated by reference to
(KAF B-1) Registrant's Registration Statement
Filed on December 12, 1997
Form of 12b-1 Distribution Plan for Class B Incorporated by reference to
(KAF B-2) Registrant's Registration Statement
Filed on December 12, 1997
Form of 12b-1 Distribution Plan for Class B Incorporated by reference to
(KCF/Evergreen) Registrant's Registration Statement
Filed on December 12, 1997
Form of 12b-1 Distribution Plan for Class C Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
(n) Financial Data Schedules Filed herein
(o) Multiple Class Plan Incorporated by reference to
Registrant's Registration Statement
Filed on December 12, 1997
</TABLE>
Item 24. Persons Controlled by or Under Common Control with Registrant.
None
Item 25. Indemnification.
Provisions for the indemnification of the Registrant's Trustees and
officers are contained the Registrant's Declaration of Trust a copy of which is
currently on file.
Provisions for the indemnification of the Registrant's Investment Advisor
are contained in their respective Investment Advisory and Management Agreements.
Provisions for the indemnification of Evergreen Distributor, Inc., the
Registrant's principal underwriter, are contained in each Principal Underwriting
Agreement between Evergreen Distributor, Inc. and the Registrant.
Item 26. Business or Other Connections of Investment Adviser.
The Directors and principal executive officers of First Union National Bank
are:
Edward E. Crutchfield, Jr. Chairman and Chief Executive Officer,
First Union Corporation; Chief Executive
Officer and Chairman, First Union National
Bank
John R. Georgius President, First Union Corporation; Vice
Chairman and President, First Union National
Bank
Marion A. Cowell, Jr. Executive Vice President, Secretary &
General Counsel, First Union Corporation;
Secretary and Executive Vice President,
First Union National Bank
Robert T. Atwood Executive Vice President and Chief Financial
Officer, First Union Corporation; Chief
Financial Officer and Executive Vice
President
All of the above persons are located at the following address: First Union
National Bank, One First Union Center, Charlotte, NC 28288.
The information required by this item with respect to Evergreen Asset
Management Corp. is incorporated by reference to the Form ADV (File No.
801-46522) of Evergreen Asset Management Corp.
The information required by this item with respect to Keystone Investment
Management Company is incorporated by reference to the Form ADV (File No.
801-8327) of Keystone Investment Management Company.
Item 27. Principal Underwriters.
The Directors and principal executive officers of Evergreen Distributor,
Inc. are:
Lynn C. Mangum Director, Chairman and Chief Executive
Officer
Robert J. McMullan Director, Executive Vice President and
Treasurer
J. David Huber President
Kevin J. Dell Vice President, General Counsel and Secretary
All of the above persons are located at the following address: Evergreen
Distributor, Inc., 125 West 55th Street, New York, New York 10019.
Evergreen Distributor, Inc. acts as principal underwriter for each
registered investment company or series thereof that is a part of the Evergreen
Keystone "fund complex" as such term is defined in Item 22(a) of Schedule 14A
under the Securities Exchange Act of 1934.
Item 28. Location of Accounts and Records.
All accounts and records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and the Rules 31a-1 through 31a-3 promulgated
thereunder are maintained at one of the following locations:
Evergreen Investment Services, Inc., Evergreen Service Company and Keystone
Investment Management Company, all located at 200 Berkeley Street, Boston,
Massachusetts 02110
First Union National Bank, One First Union Center, 301 S. College Street,
Charlotte, North Carolina 28288
Evergreen Asset Management Corp., 2500 Westchester Avenue, Purchase,
New York 10577
Iron Mountain, 3431 Sharp Slot Road, Swansea, Massachusetts 02777
State Street Bank and Trust Company, 2 Heritage Drive, North Quincy,
Massachusetts 02171
Item 29. Management Services.
Not Applicable
Item 30. Undertakings.
The Registrant hereby undertakes to furnish each person to whom a
prospectus is delivered with a copy of the Registrant's latest annual
report to shareholders, upon request and without charge.
<PAGE>
POWER OF ATTORNEY
I, the undersigned, hereby constitute Maureen E. Towle, Sally E. Ganem,
Catherine E. Foley, Beth K. Werths, Michael H. Koonce, T. Hal Clarke, John A.
Dudley, Robert N. Hickey, David M. Leahy and William J. Tomko, and each of them
singly, my true and lawful attorneys, with full power to them and each of them
to sign for me and in my name in the capacity indicated below any and all
registration statements, including, but not limited to, Forms N-8A, N-8B-1, S-
5, N-14 and N-1A, as amended from time to time, and any and all amendments
thereto to be filed with the Securities and Exchange Commission for the purpose
of registering from time to time all investment companies of which I am now or
hereafter a Trustee and for which Evergreen Investment Management Company,
Evergreen Asset Management Corp., First Union National Bank, or any other
investment advisory affiliate of First Union National Bank, serves as Adviser or
Manager and registering from time to time the shares of such companies, and
generally to do all such things in my name and on my behalf to enable such
investment companies to comply with the provisions of the Securities Act of
1933, as amended, the Investment Company Act of 1940, as amended, and all
requirements and regulations of the Securities and Exchange Commission
thereunder, hereby ratifying and confirming my signature as it may be signed by
my said attorneys to any and all registration statements and amendments thereto.
In Witness Whereof, I have executed this Power of Attorney as of September 25,
1998.
Signature Title
/s/ K/ Dun Gifford
____________________________ Trustee
K. Dun Gifford
25131 POWER OF ATTORNEY I, the undersigned, hereby constitute Maureen E. Towle,
Sally E. Ganem, Catherine E. Foley, Beth K. Werths, Michael H. Koonce, T. Hal
Clarke, John A. Dudley, Robert N. Hickey, David M. Leahy and William J. Tomko,
and each of them singly, my true and lawful attorneys, with full power to them
and each of them to sign for me and in my name in the capacity indicated below
any and all registration statements, including, but not limited to, Forms N-8A,
N-8B-1, S- 5, N-14 and N-1A, as amended from time to time, and any and all
amendments thereto to be filed with the Securities and Exchange Commission for
the purpose of registering from time to time all investment companies of which I
am now or hereafter a Trustee and for which Evergreen Investment Management
Company, Evergreen Asset Management Corp., First Union National Bank, or any
other investment advisory affiliate of First Union National Bank, serves as
Adviser or Manager and registering from time to time the shares of such
companies, and generally to do all such things in my name and on my behalf to
enable such investment companies to comply with the provisions of the Securities
Act of 1933, as amended, the Investment Company Act of 1940, as amended, and all
requirements and regulations of the Securities and Exchange Commission
thereunder, hereby ratifying and confirming my signature as it may be signed by
my said attorneys to any and all registration statements and amendments thereto.
In Witness Whereof, I have executed this Power of Attorney as of September 25,
1998. Signature Title /s/ Charles A. Austin III ____________________________
Trustee Charles A. Austin III 25131 POWER OF ATTORNEY I, the undersigned, hereby
constitute Maureen E. Towle, Sally E. Ganem, Catherine E. Foley, Beth K. Werths,
Michael H. Koonce, T. Hal Clarke, John A. Dudley, Robert N. Hickey, David M.
Leahy and William J. Tomko, and each of them singly, my true and lawful
attorneys, with full power to them and each of them to sign for me and in my
name in the capacity indicated below any and all registration statements,
including, but not limited to, Forms N-8A, N-8B-1, S- 5, N-14 and N-1A, as
amended from time to time, and any and all amendments thereto to be filed with
the Securities and Exchange Commission for the purpose of registering from time
to time all investment companies of which I am now or hereafter a Trustee and
for which Evergreen Investment Management Company, Evergreen Asset Management
Corp., First Union National Bank, or any other investment advisory affiliate of
First Union National Bank, serves as Adviser or Manager and registering from
time to time the shares of such companies, and generally to do all such things
in my name and on my behalf to enable such investment companies to comply with
the provisions of the Securities Act of 1933, as amended, the Investment Company
Act of 1940, as amended, and all requirements and regulations of the Securities
and Exchange Commission thereunder, hereby ratifying and confirming my signature
as it may be signed by my said attorneys to any and all registration statements
and amendments thereto. In Witness Whereof, I have executed this Power of
Attorney as of September 25, 1998. Signature Title /s/ Laurence B. Ashkin
____________________________ Trustee Laurence B. Ashkin 25131 POWER OF ATTORNEY
I, the undersigned, hereby constitute Maureen E. Towle, Sally E. Ganem,
Catherine E. Foley, Beth K. Werths, Michael H. Koonce, T. Hal Clarke, John A.
Dudley, Robert N. Hickey, David M. Leahy and William J. Tomko, and each of them
singly, my true and lawful attorneys, with full power to them and each of them
to sign for me and in my name in the capacity indicated below any and all
registration statements, including, but not limited to, Forms N-8A, N-8B-1, S-
5, N-14 and N-1A, as amended from time to time, and any and all amendments
thereto to be filed with the Securities and Exchange Commission for the purpose
of registering from time to time all investment companies of which I am now or
hereafter a Trustee and for which Evergreen Investment Management Company,
Evergreen Asset Management Corp., First Union National Bank, or any other
investment advisory affiliate of First Union National Bank, serves as Adviser or
Manager and registering from time to time the shares of such companies, and
generally to do all such things in my name and on my behalf to enable such
investment companies to comply with the provisions of the Securities Act of
1933, as amended, the Investment Company Act of 1940, as amended, and all
requirements and regulations of the Securities and Exchange Commission
thereunder, hereby ratifying and confirming my signature as it may be signed by
my said attorneys to any and all registration statements and amendments thereto.
In Witness Whereof, I have executed this Power of Attorney as of September 25,
1998.
Signature Title /s/ William W. Pettit ____________________________
Trustee
William W. Pettit
25131
POWER OF ATTORNEY
I, the undersigned, hereby constitute Maureen E. Towle, Sally E. Ganem,
Catherine E. Foley, Beth K. Werths, Michael H. Koonce, T. Hal Clarke, John A.
Dudley, Robert N. Hickey, David M. Leahy and William J. Tomko, and each of them
singly, my true and lawful attorneys, with full power to them and each of them
to sign for me and in my name in the capacity indicated below any and all
registration statements, including, but not limited to, Forms N-8A, N-8B-1, S-
5, N-14 and N-1A, as amended from time to time, and any and all amendments
thereto to be filed with the Securities and Exchange Commission for the purpose
of registering from time to time all investment companies of which I am now or
hereafter a Trustee and for which Evergreen Investment Management Company,
Evergreen Asset Management Corp., First Union National Bank, or any other
investment advisory affiliate of First Union National Bank, serves as Adviser or
Manager and registering from time to time the shares of such companies, and
generally to do all such things in my name and on my behalf to enable such
investment companies to comply with the provisions of the Securities Act of
1933, as amended, the Investment Company Act of 1940, as amended, and all
requirements and regulations of the Securities and Exchange Commission
thereunder, hereby ratifying and confirming my signature as it may be signed by
my said attorneys to any and all registration statements and amendments thereto.
In Witness Whereof, I have executed this Power of Attorney as of September 25,
1998.
Signature Title
/s/ James S. Howell
____________________________ Trustee
James S. Howell
25131
POWER OF ATTORNEY
I, the undersigned, hereby constitute Maureen E. Towle, Sally E. Ganem,
Catherine E. Foley, Beth K. Werths, Michael H. Koonce, T. Hal Clarke, John A.
Dudley, Robert N. Hickey, David M. Leahy and William J. Tomko, and each of them
singly, my true and lawful attorneys, with full power to them and each of them
to sign for me and in my name in the capacity indicated below any and all
registration statements, including, but not limited to, Forms N-8A, N-8B-1, S-
5, N-14 and N-1A, as amended from time to time, and any and all amendments
thereto to be filed with the Securities and Exchange Commission for the purpose
of registering from time to time all investment companies of which I am now or
hereafter a Trustee and for which Evergreen Investment Management Company,
Evergreen Asset Management Corp., First Union National Bank, or any other
investment advisory affiliate of First Union National Bank, serves as Adviser or
Manager and registering from time to time the shares of such companies, and
generally to do all such things in my name and on my behalf to enable such
investment companies to comply with the provisions of the Securities Act of
1933, as amended, the Investment Company Act of 1940, as amended, and all
requirements and regulations of the Securities and Exchange Commission
thereunder, hereby ratifying and confirming my signature as it may be signed by
my said attorneys to any and all registration statements and amendments thereto.
In Witness Whereof, I have executed this Power of Attorney as of September 25,
1998.
Signature Title
/s/ Leroy Keith, Jr.
____________________________ Trustee
Leroy Keith, Jr.
25131
POWER OF ATTORNEY
I, the undersigned, hereby constitute Maureen E. Towle, Sally E. Ganem,
Catherine E. Foley, Beth K. Werths, Michael H. Koonce, T. Hal Clarke, John A.
Dudley, Robert N. Hickey, David M. Leahy and William J. Tomko, and each of them
singly, my true and lawful attorneys, with full power to them and each of them
to sign for me and in my name in the capacity indicated below any and all
registration statements, including, but not limited to, Forms N-8A, N-8B-1, S-
5, N-14 and N-1A, as amended from time to time, and any and all amendments
thereto to be filed with the Securities and Exchange Commission for the purpose
of registering from time to time all investment companies of which I am now or
hereafter a Trustee and for which Evergreen Investment Management Company,
Evergreen Asset Management Corp., First Union National Bank, or any other
investment advisory affiliate of First Union National Bank, serves as Adviser or
Manager and registering from time to time the shares of such companies, and
generally to do all such things in my name and on my behalf to enable such
investment companies to comply with the provisions of the Securities Act of
1933, as amended, the Investment Company Act of 1940, as amended, and all
requirements and regulations of the Securities and Exchange Commission
thereunder, hereby ratifying and confirming my signature as it may be signed by
my said attorneys to any and all registration statements and amendments thereto.
In Witness Whereof, I have executed this Power of Attorney as of September 25,
1998.
Signature Title
/s/ Gerald M. McDonnell
____________________________ Trustee
Gerald M. McDonnell
25131
POWER OF ATTORNEY
I, the undersigned, hereby constitute Maureen E. Towle, Sally E. Ganem,
Catherine E. Foley, Beth K. Werths, Michael H. Koonce, T. Hal Clarke, John A.
Dudley, Robert N. Hickey, David M. Leahy and William J. Tomko, and each of them
singly, my true and lawful attorneys, with full power to them and each of them
to sign for me and in my name in the capacity indicated below any and all
registration statements, including, but not limited to, Forms N-8A, N-8B-1, S-
5, N-14 and N-1A, as amended from time to time, and any and all amendments
thereto to be filed with the Securities and Exchange Commission for the purpose
of registering from time to time all investment companies of which I am now or
hereafter a Trustee and for which Evergreen Investment Management Company,
Evergreen Asset Management Corp., First Union National Bank, or any other
investment advisory affiliate of First Union National Bank, serves as Adviser or
Manager and registering from time to time the shares of such companies, and
generally to do all such things in my name and on my behalf to enable such
investment companies to comply with the provisions of the Securities Act of
1933, as amended, the Investment Company Act of 1940, as amended, and all
requirements and regulations of the Securities and Exchange Commission
thereunder, hereby ratifying and confirming my signature as it may be signed by
my said attorneys to any and all registration statements and amendments thereto.
In Witness Whereof, I have executed this Power of Attorney as of September 25,
1998.
Signature Title
/s/ Thomas L. McVerry
____________________________ Trustee
Thomas L. McVerry
25131
POWER OF ATTORNEY
I, the undersigned, hereby constitute Maureen E. Towle, Sally E. Ganem,
Catherine E. Foley, Beth K. Werths, Michael H. Koonce, T. Hal Clarke, John A.
Dudley, Robert N. Hickey, David M. Leahy and William J. Tomko, and each of them
singly, my true and lawful attorneys, with full power to them and each of them
to sign for me and in my name in the capacity indicated below any and all
registration statements, including, but not limited to, Forms N-8A, N-8B-1, S-
5, N-14 and N-1A, as amended from time to time, and any and all amendments
thereto to be filed with the Securities and Exchange Commission for the purpose
of registering from time to time all investment companies of which I am now or
hereafter a Trustee and for which Evergreen Investment Management Company,
Evergreen Asset Management Corp., First Union National Bank, or any other
investment advisory affiliate of First Union National Bank, serves as Adviser or
Manager and registering from time to time the shares of such companies, and
generally to do all such things in my name and on my behalf to enable such
investment companies to comply with the provisions of the Securities Act of
1933, as amended, the Investment Company Act of 1940, as amended, and all
requirements and regulations of the Securities and Exchange Commission
thereunder, hereby ratifying and confirming my signature as it may be signed by
my said attorneys to any and all registration statements and amendments thereto.
In Witness Whereof, I have executed this Power of Attorney as of September 25,
1998.
Signature Title
/s/ David M. Richardson
____________________________ Trustee
David M. Richardson
25131
POWER OF ATTORNEY
I, the undersigned, hereby constitute Maureen E. Towle, Sally E. Ganem,
Catherine E. Foley, Beth K. Werths, Michael H. Koonce, T. Hal Clarke, John A.
Dudley, Robert N. Hickey, David M. Leahy and William J. Tomko, and each of them
singly, my true and lawful attorneys, with full power to them and each of them
to sign for me and in my name in the capacity indicated below any and all
registration statements, including, but not limited to, Forms N-8A, N-8B-1, S-
5, N-14 and N-1A, as amended from time to time, and any and all amendments
thereto to be filed with the Securities and Exchange Commission for the purpose
of registering from time to time all investment companies of which I am now or
hereafter a Trustee and for which Evergreen Investment Management Company,
Evergreen Asset Management Corp., First Union National Bank, or any other
investment advisory affiliate of First Union National Bank, serves as Adviser or
Manager and registering from time to time the shares of such companies, and
generally to do all such things in my name and on my behalf to enable such
investment companies to comply with the provisions of the Securities Act of
1933, as amended, the Investment Company Act of 1940, as amended, and all
requirements and regulations of the Securities and Exchange Commission
thereunder, hereby ratifying and confirming my signature as it may be signed by
my said attorneys to any and all registration statements and amendments thereto.
In Witness Whereof, I have executed this Power of Attorney as of September 25,
1998.
Signature Title
/s/ Richard J. Shima
____________________________ Trustee
Richard J. Shima
POWER OF ATTORNEY
I, the undersigned, hereby constitute Maureen E. Towle, Sally E. Ganem,
Catherine E. Foley, Beth K. Werths, Michael H. Koonce, T. Hal Clarke, John A.
Dudley, Robert N. Hickey, David M. Leahy and William J. Tomko, and each of them
singly, my true and lawful attorneys, with full power to them and each of them
to sign for me and in my name in the capacity indicated below any and all
registration statements, including, but not limited to, Forms N-8A, N-8B-1, S-
5, N-14 and N-1A, as amended from time to time, and any and all amendments
thereto to be filed with the Securities and Exchange Commission for the purpose
of registering from time to time all investment companies of which I am now or
hereafter a Trustee and for which Evergreen Investment Management Company,
Evergreen Asset Management Corp., First Union National Bank, or any other
investment advisory affiliate of First Union National Bank, serves as Adviser or
Manager and registering from time to time the shares of such companies, and
generally to do all such things in my name and on my behalf to enable such
investment companies to comply with the provisions of the Securities Act of
1933, as amended, the Investment Company Act of 1940, as amended, and all
requirements and regulations of the Securities and Exchange Commission
thereunder, hereby ratifying and confirming my signature as it may be signed by
my said attorneys to any and all registration statements and amendments thereto.
In Witness Whereof, I have executed this Power of Attorney as of September 25,
1998.
Signature Title
/s/ Michael S. Scofied
____________________________ Trustee
Michael S. Scofield
POWER OF ATTORNEY
I, the undersigned, hereby constitute Maureen E. Towle, Sally E. Ganem,
Catherine E. Foley, Beth K. Werths, Michael H. Koonce, T. Hal Clarke, John A.
Dudley, Robert N. Hickey, David M. Leahy and William J. Tomko, and each of them
singly, my true and lawful attorneys, with full power to them and each of them
to sign for me and in my name in the capacity indicated below any and all
registration statements, including, but not limited to, Forms N-8A, N-8B-1, S-
5, N-14 and N-1A, as amended from time to time, and any and all amendments
thereto to be filed with the Securities and Exchange Commission for the purpose
of registering from time to time all investment companies of which I am now or
hereafter a Trustee and for which Evergreen Investment Management Company,
Evergreen Asset Management Corp., First Union National Bank, or any other
investment advisory affiliate of First Union National Bank, serves as Adviser or
Manager and registering from time to time the shares of such companies, and
generally to do all such things in my name and on my behalf to enable such
investment companies to comply with the provisions of the Securities Act of
1933, as amended, the Investment Company Act of 1940, as amended, and all
requirements and regulations of the Securities and Exchange Commission
thereunder, hereby ratifying and confirming my signature as it may be signed by
my said attorneys to any and all registration statements and amendments thereto.
In Witness Whereof, I have executed this Power of Attorney as of September 25,
1998.
Signature Title
/s/ Russell A. Salton, III M.D.
____________________________ Trustee
Russell A. Salton, III M.D.
POWER OF ATTORNEY
I, the undersigned, hereby constitute Maureen E. Towle, Sally E. Ganem,
Catherine E. Foley, Beth K. Werths, Michael H. Koonce, T. Hal Clarke, John A.
Dudley, Robert N. Hickey, David M. Leahy and William J. Tomko, and each of them
singly, my true and lawful attorneys, with full power to them and each of them
to sign for me and in my name in the capacity indicated below any and all
registration statements, including, but not limited to, Forms N-8A, N-8B-1, S-
5, N-14 and N-1A, as amended from time to time, and any and all amendments
thereto to be filed with the Securities and Exchange Commission for the purpose
of registering from time to time all investment companies of which I am now or
hereafter a Trustee and for which Evergreen Investment Management Company,
Evergreen Asset Management Corp., First Union National Bank, or any other
investment advisory affiliate of First Union National Bank, serves as Adviser or
Manager and registering from time to time the shares of such companies, and
generally to do all such things in my name and on my behalf to enable such
investment companies to comply with the provisions of the Securities Act of
1933, as amended, the Investment Company Act of 1940, as amended, and all
requirements and regulations of the Securities and Exchange Commission
thereunder, hereby ratifying and confirming my signature as it may be signed by
my said attorneys to any and all registration statements and amendments thereto.
In Witness Whereof, I have executed this Power of Attorney as of September 25,
1998.
Signature Title
/s/ William J. Tomko
____________________________ President and Treasurer
William J. Tomko
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940 the Registrant has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereto duly
authorized, in the City of Columbus, and State of Ohio, on the 29th day of
December, 1998.
EVERGREEN INTERNATIONAL TRUST
By: /s/ William J. Tomko
-----------------------------
Name: William J. Tomko
Title: President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities indicated on the 29th day of December, 1998.
<TABLE>
<CAPTION>
<S> <C> <C>
/s/William J. Tomko /s/ Laurence B. Ashkin /s/ Charles A. Austin, III
- ------------------------- ----------------------------- --------------------------------
William J. Tomko Laurence B. Ashkin* Charles A. Austin III*
President amd Treasurer (Principal Trustee Trustee
Financial and Accounting Officer)
/s/ K. Dun Gifford /s/ James S. Howell /s/ William Walt Pettit
- ---------------------------- ---------------------------- --------------------------------
K. Dun Gifford* James S. Howell* William Walt Pettit*
Trustee Trustee Trustee
/s/Gerald M. McDonnell /s/ Thomas L. McVerry /s/ Michael S. Scofield
- ------------------------------- ----------------------------- --------------------------------
Gerald M. McDonell* Thomas L. McVerry* Michael S. Scofield*
Trustee Trustee Trustee
/s/ David M. Richardson /s/ Russell A. Salton, III MD
- ------------------------------ -------------------------------
David M. Richardson* Russell A. Salton, III MD*
Trustee Trustee
/s/ Richard J. Shima
- ------------------------------
Richard J. Shima*
Trustee
</TABLE>
*By: /s/ Catherine E. Foley
- -------------------------------
Catherine E. Foley
Attorney-in-Fact
*Catherine E. Foley, by signing her name hereto, does hereby sign this
document on behalf of each of the above-named individuals pursuant to powers of
attorney duly executed by such persons.
<PAGE>
INDEX TO EXHIBITS
Exhibit Number Exhibit
- -------------- -------
(j) Consent of Price Waterhouse LLP
(j) Consent of KPMG Peat Marwick LLP
(n) Financial Data Schedules
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectuses and
Statement of Additional Information constituting parts of this Post-Effective
Amendment No. 5 to the registration statement on Form N-1A (the "Registration
Statement") of Evergreen International Trust of our report
dated December 11, 1998, relating to the financial statements and financial
highlights of Evergreen Emerging Markets Growth Fund and Evergreen Global
Leaders Fund (the "Funds"), appearing in the October 31, 1998 Annual Report to
Shareholders, which is also incorporated by reference into the Registration
Statement. We also consent to the references to us under the heading "Financial
Highlights" in the Prospectuses and under the heading "Independent Auditors" in
the Statement of Additional Information.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York
December 28, 1998
CONSENT OF INDEPENDENT AUDITORS
The Trustees and Shareholders
Evergreen International Trust
We consent to the use of our report dated December 11, 1998 for Evergreen
Global Opportunities Fund, Evergreen International Growth Fund, Evergreen Latin
America Fund and Evergreen Precious Metals Fund incorporated by reference herein
and to the references to our firm under the caption "Financial Highlights" in
the Prospectuses and "Independent Auditors" in the Statement of
Additional Information.
/s/ KPMG Peat Marwick LLP
KPMG Peat Marwick LLP
Boston, Massachusetts
December 28, 1998
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
</LEGEND>
<SERIES>
<NUMBER> 101
<NAME> EVERGREEN EMERGING MARKETS FUND CLASS A
<PERIOD-TYPE> 12-MONTHS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-1-1997
<PERIOD-END> OCT-31-1998
<INVESTMENTS-AT-COST> 57,450,289
<INVESTMENTS-AT-VALUE> 58,574,002
<RECEIVABLES> 6,572,628
<ASSETS-OTHER> 37,818
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 65,184,448
<PAYABLE-FOR-SECURITIES> 6,323,210
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 167,247
<TOTAL-LIABILITIES> 6,490,457
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7,676,113
<SHARES-COMMON-STOCK> 784,471
<SHARES-COMMON-PRIOR> 277,892
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (13,517)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1,400,896)
<ACCUM-APPREC-OR-DEPREC> (66,870)
<NET-ASSETS> 6,194,830
<DIVIDEND-INCOME> 98,792
<INTEREST-INCOME> 87,326
<OTHER-INCOME> 0
<EXPENSES-NET> 105,720
<NET-INVESTMENT-INCOME> 80,398
<REALIZED-GAINS-CURRENT> (1,374,028)
<APPREC-INCREASE-CURRENT> 114,603
<NET-CHANGE-FROM-OPS> (1,179,027)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (48,897)
<DISTRIBUTIONS-OF-GAINS> (79,620)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,539,603
<NUMBER-OF-SHARES-REDEEMED> (1,041,101)
<SHARES-REINVESTED> 8,077
<NET-CHANGE-IN-ASSETS> 3,693,576
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 78,395
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 115,346
<AVERAGE-NET-ASSETS> 5,226,340
<PER-SHARE-NAV-BEGIN> 9.99
<PER-SHARE-NII> 0.14
<PER-SHARE-GAIN-APPREC> (1.98)
<PER-SHARE-DIVIDEND> 0.00
<PER-SHARE-DISTRIBUTIONS> (0.25)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 7.90
<EXPENSE-RATIO> 2.04
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 102
[NAME] EVERGREEN EMERGING MARKETS FUND CLASS B
[PERIOD-TYPE] 12-MONTHS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV-1-1997
[PERIOD-END] OCT-31-1998
[INVESTMENTS-AT-COST] 57,450,289
[INVESTMENTS-AT-VALUE] 58,574,002
[RECEIVABLES] 6,572,628
[ASSETS-OTHER] 37,818
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 65,184,448
[PAYABLE-FOR-SECURITIES] 6,323,210
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 167,247
[TOTAL-LIABILITIES] 6,490,457
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 3,718,514
[SHARES-COMMON-STOCK] 386,238
[SHARES-COMMON-PRIOR] 407,935
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] (73,663)
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (994,956)
[ACCUM-APPREC-OR-DEPREC] 319,977
[NET-ASSETS] 2,969,872
[DIVIDEND-INCOME] 75,939
[INTEREST-INCOME] 0
[OTHER-INCOME] 0
[EXPENSES-NET] 108,298
[NET-INVESTMENT-INCOME] (32,359)
[REALIZED-GAINS-CURRENT] (917,994)
[APPREC-INCREASE-CURRENT] 85,917
[NET-CHANGE-FROM-OPS] (864,436)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (102,137)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 150,671
[NUMBER-OF-SHARES-REDEEMED] (182,867)
[SHARES-REINVESTED] 10,499
[NET-CHANGE-IN-ASSETS] (1,121,646)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 58,772
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 115,515
[AVERAGE-NET-ASSETS] 3,918,125
[PER-SHARE-NAV-BEGIN] 9.85
[PER-SHARE-NII] 0.08
[PER-SHARE-GAIN-APPREC] (1.99)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (0.25)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 7.69
[EXPENSE-RATIO] 2.78
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN EMERGING MARKETS FUND CLASS C
[PERIOD-TYPE] 12-MONTHS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV-1-1997
[PERIOD-END] OCT-31-1998
[INVESTMENTS-AT-COST] 57,450,289
[INVESTMENTS-AT-VALUE] 58,574,002
[RECEIVABLES] 6,572,628
[ASSETS-OTHER] 37,818
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 65,184,448
[PAYABLE-FOR-SECURITIES] 6,323,210
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 167,247
[TOTAL-LIABILITIES] 6,490,457
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 736,632
[SHARES-COMMON-STOCK] 75,074
[SHARES-COMMON-PRIOR] 130,192
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] (17,061)
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (107,482)
[ACCUM-APPREC-OR-DEPREC] (35,421)
[NET-ASSETS] 576,668
[DIVIDEND-INCOME] 13,321
[INTEREST-INCOME] 76,194
[OTHER-INCOME] 0
[EXPENSES-NET] 21,303
[NET-INVESTMENT-INCOME] 68,212
[REALIZED-GAINS-CURRENT] (181,137)
[APPREC-INCREASE-CURRENT] 16,915
[NET-CHANGE-FROM-OPS] (96,010)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (33,101)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 65,455
[NUMBER-OF-SHARES-REDEEMED] (124,024)
[SHARES-REINVESTED] 3,451
[NET-CHANGE-IN-ASSETS] (714,400)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 11,571
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 22,724
[AVERAGE-NET-ASSETS] 771,377
[PER-SHARE-NAV-BEGIN] 9.85
[PER-SHARE-NII] 0.05
[PER-SHARE-GAIN-APPREC] (1.97)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 7.93
[EXPENSE-RATIO] 2.78
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN EMERGING MARKETS FUND CLASS C
[PERIOD-TYPE] 12-MONTHS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV-1-1997
[PERIOD-END] OCT-31-1998
[INVESTMENTS-AT-COST] 57,450,289
[INVESTMENTS-AT-VALUE] 58,574,002
[RECEIVABLES] 6,572,628
[ASSETS-OTHER] 37,818
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 65,184,448
[PAYABLE-FOR-SECURITIES] 6,323,210
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 167,247
[TOTAL-LIABILITIES] 6,490,457
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 61,608,684
[SHARES-COMMON-STOCK] 6,146,436
[SHARES-COMMON-PRIOR] 6,086,862
[ACCUMULATED-NII-CURRENT] 250,260
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (13,771,364)
[ACCUM-APPREC-OR-DEPREC] 865,042
[NET-ASSETS] 48,952,622
[DIVIDEND-INCOME] 1,132,153
[INTEREST-INCOME] 963,374
[OTHER-INCOME] 0
[EXPENSES-NET] 1,063,960
[NET-INVESTMENT-INCOME] 1,031,567
[REALIZED-GAINS-CURRENT] (14,145,384)
[APPREC-INCREASE-CURRENT] 1,321,419
[NET-CHANGE-FROM-OPS] (11,792,398)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (1,528,035)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,333,842
[NUMBER-OF-SHARES-REDEEMED] (1,382,744)
[SHARES-REINVESTED] 108,476
[NET-CHANGE-IN-ASSETS] (12,384,463)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 903,924
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 1,174,957
[AVERAGE-NET-ASSETS] 60,261,610
[PER-SHARE-NAV-BEGIN] 10.04
[PER-SHARE-NII] 0.16
[PER-SHARE-GAIN-APPREC] (1.98)
[PER-SHARE-DIVIDEND] (0.01)
[PER-SHARE-DISTRIBUTIONS] (0.25)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 7.96
[EXPENSE-RATIO] 1.78
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 101
[NAME] EVERGREEN GLOBAL LEADERS FUND CLASS A
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] ERR
[PERIOD-START] ERR
[PERIOD-END] ERR
[INVESTMENTS-AT-COST] 297,558,681
[INVESTMENTS-AT-VALUE] 340,849,434
[RECEIVABLES] 20,333,695
[ASSETS-OTHER] 2,243,782
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 363,426,911
[PAYABLE-FOR-SECURITIES] 7,018,524
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,482,908
[TOTAL-LIABILITIES] 8,501,432
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 131,155,084
[SHARES-COMMON-STOCK] 9,539,419
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 498,690
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (664,304)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 11,632,275
[NET-ASSETS] 142,621,745
[DIVIDEND-INCOME] 1,083,288
[INTEREST-INCOME] 297,846
[OTHER-INCOME] 0
[EXPENSES-NET] (1,594,828)
[NET-INVESTMENT-INCOME] (213,688)
[REALIZED-GAINS-CURRENT] (143,778)
[APPREC-INCREASE-CURRENT] 6,662,169
[NET-CHANGE-FROM-OPS] 6,304,703
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (165,467)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 34,578,979
[NUMBER-OF-SHARES-REDEEMED] (27,875,118)
[SHARES-REINVESTED] 11,768
[NET-CHANGE-IN-ASSETS] 104,695,521
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (818,863)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (1,595,701)
[AVERAGE-NET-ASSETS] 86,031,415
[PER-SHARE-NAV-BEGIN] 13.67
[PER-SHARE-NII] (0.04)
[PER-SHARE-GAIN-APPREC] 1.38
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (0.06)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 14.95
[EXPENSE-RATIO] 1.85
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 102
[NAME] EVERGREEN GLOBAL LEADERS FUND CLASS B
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] October 31, 1998
[PERIOD-START] November 1, 1997
[PERIOD-END] October 31, 1998
[INVESTMENTS-AT-COST] 297,558,681
[INVESTMENTS-AT-VALUE] 340,849,434
[RECEIVABLES] 20,333,695
[ASSETS-OTHER] 2,243,782
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 363,426,911
[PAYABLE-FOR-SECURITIES] 7,018,524
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,482,908
[TOTAL-LIABILITIES] 8,501,432
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 144,892,670
[SHARES-COMMON-STOCK] 11,333,742
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] (987,832)
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (626,546)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 23,277,954
[NET-ASSETS] 166,556,246
[DIVIDEND-INCOME] 1,922,840
[INTEREST-INCOME] 458,700
[OTHER-INCOME] 0
[EXPENSES-NET] (4,081,275)
[NET-INVESTMENT-INCOME] (1,699,730)
[REALIZED-GAINS-CURRENT] 419,270
[APPREC-INCREASE-CURRENT] 12,104,422
[NET-CHANGE-FROM-OPS] 10,823,962
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (582,223)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 3,186,919
[NUMBER-OF-SHARES-REDEEMED] (1,832,008)
[SHARES-REINVESTED] 41,954
[NET-CHANGE-IN-ASSETS] 31,527,521
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (1,483,536)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (4,082,860)
[AVERAGE-NET-ASSETS] 156,309,677
[PER-SHARE-NAV-BEGIN] 13.52
[PER-SHARE-NII] (0.16)
[PER-SHARE-GAIN-APPREC] 1.40
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (0.06)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 14.70
[EXPENSE-RATIO] 2.61
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN GLOBAL LEADERS FUND CLASS C
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] October 31, 1998
[PERIOD-START] November 1, 1997
[PERIOD-END] October 31, 1998
[INVESTMENTS-AT-COST] 297,558,681
[INVESTMENTS-AT-VALUE] 340,849,434
[RECEIVABLES] 20,333,695
[ASSETS-OTHER] 2,243,782
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 363,426,911
[PAYABLE-FOR-SECURITIES] 7,018,524
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,482,908
[TOTAL-LIABILITIES] 8,501,432
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 3,544,503
[SHARES-COMMON-STOCK] 264,065
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] (17,978)
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (14,955)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 363,075
[NET-ASSETS] 3,874,645
[DIVIDEND-INCOME] 40,308
[INTEREST-INCOME] 9,827
[OTHER-INCOME] 0
[EXPENSES-NET] (84,612)
[NET-INVESTMENT-INCOME] (34,477)
[REALIZED-GAINS-CURRENT] 5,910
[APPREC-INCREASE-CURRENT] 251,491
[NET-CHANGE-FROM-OPS] 222,924
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (10,308)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 181,393
[NUMBER-OF-SHARES-REDEEMED] (94,685)
[SHARES-REINVESTED] 721
[NET-CHANGE-IN-ASSETS] 1,567,557
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (30,829)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (84,645)
[AVERAGE-NET-ASSETS] 3,247,592
[PER-SHARE-NAV-BEGIN] 13.51
[PER-SHARE-NII] (0.16)
[PER-SHARE-GAIN-APPREC] 1.38
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (0.06)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 14.67
[EXPENSE-RATIO] 2.61
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN GLOBAL LEADERS FUND CLASS Y
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] October 31, 1998
[PERIOD-START] November 1, 1997
[PERIOD-END] October 31, 1998
[INVESTMENTS-AT-COST] 297,558,681
[INVESTMENTS-AT-VALUE] 340,849,434
[RECEIVABLES] 20,333,695
[ASSETS-OTHER] 2,243,782
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 363,426,911
[PAYABLE-FOR-SECURITIES] 7,018,524
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 1,482,908
[TOTAL-LIABILITIES] 8,501,432
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 33,313,614
[SHARES-COMMON-STOCK] 2,782,491
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 494,131
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 29,560
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 8,035,538
[NET-ASSETS] 41,872,843
[DIVIDEND-INCOME] 511,099
[INTEREST-INCOME] 122,142
[OTHER-INCOME] 0
[EXPENSES-NET] (668,593)
[NET-INVESTMENT-INCOME] (35,363)
[REALIZED-GAINS-CURRENT] 139,685
[APPREC-INCREASE-CURRENT] 3,208,261
[NET-CHANGE-FROM-OPS] 3,312,583
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (150,779)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,226,789
[NUMBER-OF-SHARES-REDEEMED] (1,034,996)
[SHARES-REINVESTED] 4,034
[NET-CHANGE-IN-ASSETS] 6,309,446
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (393,446)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (669,012)
[AVERAGE-NET-ASSETS] 41,429,708
[PER-SHARE-NAV-BEGIN] 13.71
[PER-SHARE-NII] (0.01)
[PER-SHARE-GAIN-APPREC] 1.41
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (0.06)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 15.05
[EXPENSE-RATIO] 1.61
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 101
[NAME] EVERGREEN GLOBAL OPPORTUNITIES CLASS A
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] 10/31/98
[PERIOD-START] 11/01/97
[PERIOD-END] 10/31/98
[INVESTMENTS-AT-COST] 188,848,416
[INVESTMENTS-AT-VALUE] 209,365,983
[RECEIVABLES] 5,978,471
[ASSETS-OTHER] 368,467
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 215,712,921
[PAYABLE-FOR-SECURITIES] 7,775,281
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 3,771,931
[TOTAL-LIABILITIES] 11,547,212
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 44,628,996
[SHARES-COMMON-STOCK] 3,060,778
[SHARES-COMMON-PRIOR] 4,166,415
[ACCUMULATED-NII-CURRENT] 3,108,315
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 1,543,427
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 9,663,339
[NET-ASSETS] 58,944,077
[DIVIDEND-INCOME] 665,865
[INTEREST-INCOME] 304,492
[OTHER-INCOME] 0
[EXPENSES-NET] (1,819,274)
[NET-INVESTMENT-INCOME] (848,917)
[REALIZED-GAINS-CURRENT] 2,132,655
[APPREC-INCREASE-CURRENT] (9,081,333)
[NET-CHANGE-FROM-OPS] (7,797,595)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (6,152,515)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 4,344,269
[NUMBER-OF-SHARES-REDEEMED] (5,674,012)
[SHARES-REINVESTED] 224,106
[NET-CHANGE-IN-ASSETS] (1,105,637)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (770,710)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (1,398,019)
[AVERAGE-NET-ASSETS] 77,536,345
[PER-SHARE-NAV-BEGIN] 23.53
[PER-SHARE-NII] (0.12)
[PER-SHARE-GAIN-APPREC] (2.62)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (1.53)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 19.26
[EXPENSE-RATIO] 1.81
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 102
[NAME] EVERGREEN GLOBAL OPPORTUNITIES CLASS B
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] 10/31/98
[PERIOD-START] 11/01/97
[PERIOD-END] 10/31/98
[INVESTMENTS-AT-COST] 188,848,416
[INVESTMENTS-AT-VALUE] 209,365,983
[RECEIVABLES] 5,978,471
[ASSETS-OTHER] 368,467
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 215,712,921
[PAYABLE-FOR-SECURITIES] 7,775,281
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 3,771,931
[TOTAL-LIABILITIES] 11,547,212
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 112,938,802
[SHARES-COMMON-STOCK] 6,640,958
[SHARES-COMMON-PRIOR] 9,540,331
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] (338,192)
[ACCUMULATED-NET-GAINS] 4,865,348
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 4,681,076
[NET-ASSETS] 122,147,034
[DIVIDEND-INCOME] 1,511,085
[INTEREST-INCOME] 691,000
[OTHER-INCOME] 0
[EXPENSES-NET] (4,128,581)
[NET-INVESTMENT-INCOME] (1,926,496)
[REALIZED-GAINS-CURRENT] 4,839,755
[APPREC-INCREASE-CURRENT] (20,608,708)
[NET-CHANGE-FROM-OPS] (17,695,449)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (14,270,759)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 310,625
[NUMBER-OF-SHARES-REDEEMED] (3,830,040)
[SHARES-REINVESTED] 620,042
[NET-CHANGE-IN-ASSETS] (2,899,373)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (1,738,058)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (4,479,859)
[AVERAGE-NET-ASSETS] 175,957,640
[PER-SHARE-NAV-BEGIN] 22.69
[PER-SHARE-NII] (0.28)
[PER-SHARE-GAIN-APPREC] (2.49)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (1.53)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 18.39
[EXPENSE-RATIO] 2.55
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN GLOBAL OPPORTUNITIES CLASS C
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] 10/31/98
[PERIOD-START] 11/01/97
[PERIOD-END] 10/31/98
[INVESTMENTS-AT-COST] 188,848,416
[INVESTMENTS-AT-VALUE] 209,365,983
[RECEIVABLES] 5,978,471
[ASSETS-OTHER] 368,467
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 215,712,921
[PAYABLE-FOR-SECURITIES] 7,775,281
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 3,771,931
[TOTAL-LIABILITIES] 11,547,212
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 15,265,450
[SHARES-COMMON-STOCK] 1,250,067
[SHARES-COMMON-PRIOR] 1,929,900
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] (508,032)
[ACCUMULATED-NET-GAINS] 2,152,337
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 6,133,344
[NET-ASSETS] 23,043,099
[DIVIDEND-INCOME] 296,720
[INTEREST-INCOME] 135,686
[OTHER-INCOME] 0
[EXPENSES-NET] (810,697)
[NET-INVESTMENT-INCOME] (378,291)
[REALIZED-GAINS-CURRENT] 950,345
[APPREC-INCREASE-CURRENT] (4,046,771)
[NET-CHANGE-FROM-OPS] (3,474,717)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (2,859,903)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 102,028
[NUMBER-OF-SHARES-REDEEMED] (908,274)
[SHARES-REINVESTED] 126,413
[NET-CHANGE-IN-ASSETS] (679,833)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (341,703)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (881,431)
[AVERAGE-NET-ASSETS] 34,551,437
[PER-SHARE-NAV-BEGIN] 22.73
[PER-SHARE-NII] (0.28)
[PER-SHARE-GAIN-APPREC] (2.49)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (1.53)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 18.43
[EXPENSE-RATIO] 2.56
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN GLOBAL OPPORTUNITIES CLASS C
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] 10/31/98
[PERIOD-START] 11/01/97
[PERIOD-END] 10/31/98
[INVESTMENTS-AT-COST] 188,848,416
[INVESTMENTS-AT-VALUE] 209,365,983
[RECEIVABLES] 5,978,471
[ASSETS-OTHER] 368,467
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 215,712,921
[PAYABLE-FOR-SECURITIES] 7,775,281
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 3,771,931
[TOTAL-LIABILITIES] 11,547,212
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] (11,704)
[SHARES-COMMON-STOCK] 1,609
[SHARES-COMMON-PRIOR] 1
[ACCUMULATED-NII-CURRENT] 1,523
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (15,432)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 57,112
[NET-ASSETS] 31,499
[DIVIDEND-INCOME] 708
[INTEREST-INCOME] 324
[OTHER-INCOME] 0
[EXPENSES-NET] (1,933)
[NET-INVESTMENT-INCOME] (903)
[REALIZED-GAINS-CURRENT] 2,267
[APPREC-INCREASE-CURRENT] (9,618)
[NET-CHANGE-FROM-OPS] (8,254)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (2)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 301,547
[NUMBER-OF-SHARES-REDEEMED] (299,939)
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 1,608
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (816)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (1,177)
[AVERAGE-NET-ASSETS] 82,199
[PER-SHARE-NAV-BEGIN] 23.90
[PER-SHARE-NII] 0.09
[PER-SHARE-GAIN-APPREC] (2.88)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (1.53)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 19.58
[EXPENSE-RATIO] 1.49
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 101
[NAME] EVERGREEN INTERNATIONAL GROWTH FUND CLASS A
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV-01-1997
[PERIOD-END] OCT-31-1998
[INVESTMENTS-AT-COST] 581,314,638
[INVESTMENTS-AT-VALUE] 630,405,336
[RECEIVABLES] 39,288,456
[ASSETS-OTHER] 2,835,675
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 672,529,467
[PAYABLE-FOR-SECURITIES] 26,021,835
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 10,821,546
[TOTAL-LIABILITIES] 36,843,381
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 125,595,122
[SHARES-COMMON-STOCK] 17,227,112
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 2,824,604
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (10,458,568)
[ACCUM-APPREC-OR-DEPREC] 10,695,874
[NET-ASSETS] 128,657,032
[DIVIDEND-INCOME] 1,589,385
[INTEREST-INCOME] 559,672
[OTHER-INCOME] 0
[EXPENSES-NET] (1,257,706)
[NET-INVESTMENT-INCOME] 891,351
[REALIZED-GAINS-CURRENT] (4,466,756)
[APPREC-INCREASE-CURRENT] 1,219,379
[NET-CHANGE-FROM-OPS] (2,356,026)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 28,423,721
[NUMBER-OF-SHARES-REDEEMED] (11,196,609)
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 118,951,872
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (599,830)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (1,259,445)
[AVERAGE-NET-ASSETS] 105,825,686
[PER-SHARE-NAV-BEGIN] 6.88
[PER-SHARE-NII] 0.10
[PER-SHARE-GAIN-APPREC] 0.49
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 7.47
[EXPENSE-RATIO] 1.53
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 102
[NAME] EVERGREEN INTERNATIONAL GROWTH FUND CLASS B
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV-01-1997
[PERIOD-END] OCT-31-1998
[INVESTMENTS-AT-COST] 581,314,638
[INVESTMENTS-AT-VALUE] 630,405,336
[RECEIVABLES] 39,288,456
[ASSETS-OTHER] 2,835,675
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 672,529,467
[PAYABLE-FOR-SECURITIES] 26,021,835
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 10,821,546
[TOTAL-LIABILITIES] 36,843,381
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 57,956,668
[SHARES-COMMON-STOCK] 10,155,423
[SHARES-COMMON-PRIOR] 17,547,613
[ACCUMULATED-NII-CURRENT] 2,324,086
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (11,929,083)
[ACCUM-APPREC-OR-DEPREC] 27,114,918
[NET-ASSETS] 75,466,589
[DIVIDEND-INCOME] 1,099,202
[INTEREST-INCOME] 500,173
[OTHER-INCOME] 0
[EXPENSES-NET] (1,690,926)
[NET-INVESTMENT-INCOME] (91,551)
[REALIZED-GAINS-CURRENT] (5,019,940)
[APPREC-INCREASE-CURRENT] 846,417
[NET-CHANGE-FROM-OPS] (4,265,074)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (5,718,223)
[DISTRIBUTIONS-OF-GAINS] (26,737,026)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 6,504,975
[NUMBER-OF-SHARES-REDEEMED] (18,038,575)
[SHARES-REINVESTED] 4,141,410
[NET-CHANGE-IN-ASSETS] (85,202,976)
[ACCUMULATED-NII-PRIOR] 6,805,770
[ACCUMULATED-GAINS-PRIOR] 25,051,153
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (539,468)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (1,692,133)
[AVERAGE-NET-ASSETS] 73,457,565
[PER-SHARE-NAV-BEGIN] 8.65
[PER-SHARE-NII] (0.02)
[PER-SHARE-GAIN-APPREC] 0.67
[PER-SHARE-DIVIDEND] (0.33)
[PER-SHARE-DISTRIBUTIONS] (1.54)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 7.43
[EXPENSE-RATIO] 2.30
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN INTERNATIONAL GROWTH FUND CLASS C
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV-01-1997
[PERIOD-END] OCT-31-1998
[INVESTMENTS-AT-COST] 581,314,638
[INVESTMENTS-AT-VALUE] 630,405,336
[RECEIVABLES] 39,288,456
[ASSETS-OTHER] 2,835,675
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 672,529,467
[PAYABLE-FOR-SECURITIES] 26,021,835
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 10,821,546
[TOTAL-LIABILITIES] 36,843,381
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 3,845,735
[SHARES-COMMON-STOCK] 454,293
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 37,719
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (273,718)
[ACCUM-APPREC-OR-DEPREC] (235,044)
[NET-ASSETS] 3,374,692
[DIVIDEND-INCOME] 19,561
[INTEREST-INCOME] 10,739
[OTHER-INCOME] 0
[EXPENSES-NET] (25,263)
[NET-INVESTMENT-INCOME] 5,037
[REALIZED-GAINS-CURRENT] (133,343)
[APPREC-INCREASE-CURRENT] 20,614
[NET-CHANGE-FROM-OPS] (107,692)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,048,641
[NUMBER-OF-SHARES-REDEEMED] (594,348)
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 3,597,163
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (8,314)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (25,293)
[AVERAGE-NET-ASSETS] 1,789,024
[PER-SHARE-NAV-BEGIN] 7.64
[PER-SHARE-NII] 0.03
[PER-SHARE-GAIN-APPREC] (0.24)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 7.43
[EXPENSE-RATIO] 2.19
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN INTERNATIONAL GROWTH FUND CLASS Y
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV-01-1997
[PERIOD-END] OCT-31-1998
[INVESTMENTS-AT-COST] 581,314,638
[INVESTMENTS-AT-VALUE] 630,405,336
[RECEIVABLES] 39,288,456
[ASSETS-OTHER] 2,835,675
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 672,529,467
[PAYABLE-FOR-SECURITIES] 26,021,835
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 10,821,546
[TOTAL-LIABILITIES] 36,843,381
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 440,961,350
[SHARES-COMMON-STOCK] 57,472,437
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 3,073,692
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (27,040,463)
[ACCUM-APPREC-OR-DEPREC] 11,193,194
[NET-ASSETS] 428,187,773
[DIVIDEND-INCOME] 898,821
[INTEREST-INCOME] 895,756
[OTHER-INCOME] 0
[EXPENSES-NET] (916,442)
[NET-INVESTMENT-INCOME] 878,135
[REALIZED-GAINS-CURRENT] (16,544,122)
[APPREC-INCREASE-CURRENT] 1,384,825
[NET-CHANGE-FROM-OPS] (14,281,162)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 61,137,146
[NUMBER-OF-SHARES-REDEEMED] (3,664,709)
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 446,533,917
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (551,106)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (918,417)
[AVERAGE-NET-ASSETS] 120,184,118
[PER-SHARE-NAV-BEGIN] 7.73
[PER-SHARE-NII] 0.07
[PER-SHARE-GAIN-APPREC] (0.35)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 7.45
[EXPENSE-RATIO] 1.18
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 101
[NAME] EVERGREEN LATIN AMERICA FUND CLASS A
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV 01,1997
[PERIOD-END] OCT-31-1998
[INVESTMENTS-AT-COST] 38,981,027
[INVESTMENTS-AT-VALUE] 38,198,940
[RECEIVABLES] 6,718,155
[ASSETS-OTHER] 32,882
[OTHER-ITEMS-ASSETS] 6,184
[TOTAL-ASSETS] 44,956,161
[PAYABLE-FOR-SECURITIES] 1,565,414
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 108,718
[TOTAL-LIABILITIES] 1,674,132
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 10,860,852
[SHARES-COMMON-STOCK] 857,070
[SHARES-COMMON-PRIOR] 1,106,770
[ACCUMULATED-NII-CURRENT] 384,011
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (3,635,689)
[ACCUM-APPREC-OR-DEPREC] (1,125,804)
[NET-ASSETS] 6,483,370
[DIVIDEND-INCOME] 303,670
[INTEREST-INCOME] 52,551
[OTHER-INCOME] 0
[EXPENSES-NET] (207,492)
[NET-INVESTMENT-INCOME] 148,727
[REALIZED-GAINS-CURRENT] (3,385,875)
[APPREC-INCREASE-CURRENT] 661,831
[NET-CHANGE-FROM-OPS] (2,575,317)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (2,915,764)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,613,531
[NUMBER-OF-SHARES-REDEEMED] (2,045,506)
[SHARES-REINVESTED] 253,396
[NET-CHANGE-IN-ASSETS] (6,979,422)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (356,219)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (208,512)
[AVERAGE-NET-ASSETS] 11,210,885
[PER-SHARE-NAV-BEGIN] 13.15
[PER-SHARE-NII] 0.14
[PER-SHARE-GAIN-APPREC] (2.87)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (2.86)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 7.56
[EXPENSE-RATIO] 1.86
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 102
[NAME] EVERGREEN LATIN AMERICA FUND CLASS B
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV 01,1997
[PERIOD-END] OCT-31-1998
[INVESTMENTS-AT-COST] 38,981,027
[INVESTMENTS-AT-VALUE] 38,198,940
[RECEIVABLES] 6,718,155
[ASSETS-OTHER] 32,882
[OTHER-ITEMS-ASSETS] 6,184
[TOTAL-ASSETS] 44,956,161
[PAYABLE-FOR-SECURITIES] 1,565,414
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 108,718
[TOTAL-LIABILITIES] 1,674,132
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 49,078,919
[SHARES-COMMON-STOCK] 4,366,801
[SHARES-COMMON-PRIOR] 6,034,932
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] (325,468)
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (17,169,016)
[ACCUM-APPREC-OR-DEPREC] 461,268
[NET-ASSETS] 32,045,703
[DIVIDEND-INCOME] 1,589,292
[INTEREST-INCOME] 266,874
[OTHER-INCOME] 0
[EXPENSES-NET] (1,509,679)
[NET-INVESTMENT-INCOME] 346,488
[REALIZED-GAINS-CURRENT] (17,305,054)
[APPREC-INCREASE-CURRENT] 3,424,714
[NET-CHANGE-FROM-OPS] (13,533,852)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (16,639,668)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1,117,118
[NUMBER-OF-SHARES-REDEEMED] (3,992,062)
[SHARES-REINVESTED] 1,410,947
[NET-CHANGE-IN-ASSETS] (43,328,454)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (1,856,167)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (1,514,956)
[AVERAGE-NET-ASSETS] 58,011,882
[PER-SHARE-NAV-BEGIN] 12.91
[PER-SHARE-NII] 0.06
[PER-SHARE-GAIN-APPREC] (2.77)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (2.86)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 7.34
[EXPENSE-RATIO] 2.61
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN LATIN AMERICA FUND CLASS C
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV 01,1997
[PERIOD-END] OCT-31-1998
[INVESTMENTS-AT-COST] 38,981,027
[INVESTMENTS-AT-VALUE] 38,198,940
[RECEIVABLES] 6,718,155
[ASSETS-OTHER] 32,882
[OTHER-ITEMS-ASSETS] 6,184
[TOTAL-ASSETS] 44,956,161
[PAYABLE-FOR-SECURITIES] 1,565,414
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 108,718
[TOTAL-LIABILITIES] 1,674,132
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 7,975,794
[SHARES-COMMON-STOCK] 645,059
[SHARES-COMMON-PRIOR] 801,466
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] (62,126)
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (2,469,788)
[ACCUM-APPREC-OR-DEPREC] (719,091)
[NET-ASSETS] 4,724,789
[DIVIDEND-INCOME] 214,364
[INTEREST-INCOME] 37,645
[OTHER-INCOME] 0
[EXPENSES-NET] (208,660)
[NET-INVESTMENT-INCOME] 43,349
[REALIZED-GAINS-CURRENT] (2,461,034)
[APPREC-INCREASE-CURRENT] 473,416
[NET-CHANGE-FROM-OPS] (1,944,269)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (2,385,233)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 129,986
[NUMBER-OF-SHARES-REDEEMED] (537,453)
[SHARES-REINVESTED] 203,815
[NET-CHANGE-IN-ASSETS] (6,293,831)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (252,009)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (209,389)
[AVERAGE-NET-ASSETS] 8,019,287
[PER-SHARE-NAV-BEGIN] 12.92
[PER-SHARE-NII] 0.05
[PER-SHARE-GAIN-APPREC] (2.79)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (2.86)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 7.32
[EXPENSE-RATIO] 2.61
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN LATIN AMERICA FUND CLASS Y
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV 01,1997
[PERIOD-END] OCT-31-1998
[INVESTMENTS-AT-COST] 38,981,027
[INVESTMENTS-AT-VALUE] 38,198,940
[RECEIVABLES] 6,718,155
[ASSETS-OTHER] 32,882
[OTHER-ITEMS-ASSETS] 6,184
[TOTAL-ASSETS] 44,956,161
[PAYABLE-FOR-SECURITIES] 1,565,414
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 108,718
[TOTAL-LIABILITIES] 1,674,132
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 39,356
[SHARES-COMMON-STOCK] 3,714
[SHARES-COMMON-PRIOR] 109
[ACCUMULATED-NII-CURRENT] 32
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] (9,742)
[ACCUM-APPREC-OR-DEPREC] (1,479)
[NET-ASSETS] 28,167
[DIVIDEND-INCOME] 227
[INTEREST-INCOME] 154
[OTHER-INCOME] 0
[EXPENSES-NET] (201)
[NET-INVESTMENT-INCOME] 181
[REALIZED-GAINS-CURRENT] (9,939)
[APPREC-INCREASE-CURRENT] 1,254
[NET-CHANGE-FROM-OPS] (8,504)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 3,714
[NUMBER-OF-SHARES-REDEEMED] 0
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 30,901
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (382)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (202)
[AVERAGE-NET-ASSETS] 21,247
[PER-SHARE-NAV-BEGIN] 10.94
[PER-SHARE-NII] 0.07
[PER-SHARE-GAIN-APPREC] (3.43)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 7.58
[EXPENSE-RATIO] 1.49
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN NATURAL RESOURCES FUND CLASS C
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV-01-1997
[PERIOD-END] OCT-31-1998
[INVESTMENTS-AT-COST] 4,686,936
[INVESTMENTS-AT-VALUE] 5,340,705
[RECEIVABLES] 11,660
[ASSETS-OTHER] 1,751,241
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 7,103,606
[PAYABLE-FOR-SECURITIES] 135,011
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 51,176
[TOTAL-LIABILITIES] 186,187
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 613,694
[SHARES-COMMON-STOCK] 82,583
[SHARES-COMMON-PRIOR] 220,686
[ACCUMULATED-NII-CURRENT] (3,801)
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 63,627
[ACCUM-APPREC-OR-DEPREC] (43,525)
[NET-ASSETS] 629,995
[DIVIDEND-INCOME] 24,347
[INTEREST-INCOME] 3,602
[OTHER-INCOME] 0
[EXPENSES-NET] (46,039)
[NET-INVESTMENT-INCOME] (18,090)
[REALIZED-GAINS-CURRENT] (57,571)
[APPREC-INCREASE-CURRENT] 967,622
[NET-CHANGE-FROM-OPS] 891,961
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] (27,065)
[DISTRIBUTIONS-OF-GAINS] (260,243)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 42,669
[NUMBER-OF-SHARES-REDEEMED] (207,713)
[SHARES-REINVESTED] 26,941
[NET-CHANGE-IN-ASSETS] (719,651)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (12,976)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (46,039)
[AVERAGE-NET-ASSETS] 1,298,396
[PER-SHARE-NAV-BEGIN] 12.31
[PER-SHARE-NII] (0.13)
[PER-SHARE-GAIN-APPREC] (3.17)
[PER-SHARE-DIVIDEND] (0.13)
[PER-SHARE-DISTRIBUTIONS] (1.25)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 7.63
[EXPENSE-RATIO] 0.00
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 102
[NAME] EVERGREEN PRECIOUS METALS FUND CLASS B
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV-01-1997
[PERIOD-END] OCT -31-1998
[INVESTMENTS-AT-COST] 147,714,041
[INVESTMENTS-AT-VALUE] 108,838,222
[RECEIVABLES] 723,455
[ASSETS-OTHER] 1,295,631
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 110,857,308
[PAYABLE-FOR-SECURITIES] 482,542
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 621,545
[TOTAL-LIABILITIES] 1,104,087
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 75,683,192
[SHARES-COMMON-STOCK] 2,224,888
[SHARES-COMMON-PRIOR] 7,003,255
[ACCUMULATED-NII-CURRENT] (429,497)
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (20,414,514)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] (29,073,887)
[NET-ASSETS] 25,765,294
[DIVIDEND-INCOME] 475,099
[INTEREST-INCOME] 45,382
[OTHER-INCOME] 7,871
[EXPENSES-NET] (1,184,462)
[NET-INVESTMENT-INCOME] (656,110)
[REALIZED-GAINS-CURRENT] (15,558,470)
[APPREC-INCREASE-CURRENT] (3,303,944)
[NET-CHANGE-FROM-OPS] (19,518,524)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] (5,647,344)
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 5,743,525
[NUMBER-OF-SHARES-REDEEMED] (10,878,964)
[SHARES-REINVESTED] 357,072
[NET-CHANGE-IN-ASSETS] (19,909,408)
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] (2,757)
[OVERDISTRIB-NII-PRIOR] 5,208,377
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (320,138)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (1,184,463)
[AVERAGE-NET-ASSETS] 43,622,262
[PER-SHARE-NAV-BEGIN] 15.87
[PER-SHARE-NII] (0.19)
[PER-SHARE-GAIN-APPREC] (3.29)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] (0.81)
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 11.58
[EXPENSE-RATIO] 2.72
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN PRECIOUS METALS FUND CLASS C
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV-01-1997
[PERIOD-END] OCT -31-1998
[INVESTMENTS-AT-COST] 147,714,041
[INVESTMENTS-AT-VALUE] 108,838,222
[RECEIVABLES] 723,455
[ASSETS-OTHER] 1,295,631
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 110,857,308
[PAYABLE-FOR-SECURITIES] 482,542
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 621,545
[TOTAL-LIABILITIES] 1,104,087
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 720,713
[SHARES-COMMON-STOCK] 48,140
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] (2,520)
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] (257,433)
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 96,526
[NET-ASSETS] 557,286
[DIVIDEND-INCOME] 4,782
[INTEREST-INCOME] 388
[OTHER-INCOME] 89
[EXPENSES-NET] (10,506)
[NET-INVESTMENT-INCOME] (5,247)
[REALIZED-GAINS-CURRENT] (207,595)
[APPREC-INCREASE-CURRENT] 96,526
[NET-CHANGE-FROM-OPS] (116,316)
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 146,046
[NUMBER-OF-SHARES-REDEEMED] (97,906)
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 557,294
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] (2,727)
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (10,505)
[AVERAGE-NET-ASSETS] 490,634
[PER-SHARE-NAV-BEGIN] 13.65
[PER-SHARE-NII] (0.14)
[PER-SHARE-GAIN-APPREC] (1.93)
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 11.58
[EXPENSE-RATIO] 2.83
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
[ARTICLE] 6
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCOUNTING
RECORDS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ACCOUNTING
RECORDS.
[/LEGEND]
[SERIES]
[NUMBER] 103
[NAME] EVERGREEN PRECIOUS METALS FUND CLASS C
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] OCT-31-1998
[PERIOD-START] NOV-01-1997
[PERIOD-END] OCT -31-1998
[INVESTMENTS-AT-COST] 147,714,041
[INVESTMENTS-AT-VALUE] 108,838,222
[RECEIVABLES] 723,455
[ASSETS-OTHER] 1,295,631
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 110,857,308
[PAYABLE-FOR-SECURITIES] 482,542
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 621,545
[TOTAL-LIABILITIES] 1,104,087
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 0
[SHARES-COMMON-STOCK] 0
[SHARES-COMMON-PRIOR] 0
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 0
[DIVIDEND-INCOME] 0
[INTEREST-INCOME] 0
[OTHER-INCOME] 0
[EXPENSES-NET] 0
[NET-INVESTMENT-INCOME] 0
[REALIZED-GAINS-CURRENT] 0
[APPREC-INCREASE-CURRENT] 0
[NET-CHANGE-FROM-OPS] 0
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 0
[NUMBER-OF-SHARES-REDEEMED] 0
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 0
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 0
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 0
[AVERAGE-NET-ASSETS] 0
[PER-SHARE-NAV-BEGIN] 0.00
[PER-SHARE-NII] 0.00
[PER-SHARE-GAIN-APPREC] 0.00
[PER-SHARE-DIVIDEND] 0.00
[PER-SHARE-DISTRIBUTIONS] 0.00
[RETURNS-OF-CAPITAL] 0.00
[PER-SHARE-NAV-END] 0.00
[EXPENSE-RATIO] 0.00
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
